Scientific Games Launches Lottery Instant Game Sales in Grocery Checkout Line with Kentucky Lottery, Kroger and Blackhawk

LAS VEGAS and ATLANTA – March 30, 2021 – Scientific Games Corporation (NASDAQ: SGMS) (“Scientific Games” or the “Company”) announces the launch of its industry leading lottery retail solutions for instant game purchases in the checkout line with SCiQ InLane technology. Through a recent partnership with the Kentucky Lottery, Kroger and Blackhawk Network, shoppers at Lexington, Kentucky area Kroger stores are now purchasing scratch games along with other grocery items in one convenient transaction in the checkout lanes. The long-term initiative with SCiQ InLane™ is expanding to other Kroger markets. Currently, instant games are a nearly $60 billion consumer product category in the U.S., with grocery stores representing approximately $11 billion (18.5%) of total instant game retail sales.

In ongoing efforts to modernize the lottery retail experience at grocery stores and big box retailers, and help drive maximum proceeds for lottery beneficiary programs, Scientific Games partnered with Kroger, the largest grocery retailer in the U.S., and Blackhawk Network, a leader in branded payment programs that help extend reach, build loyalty and increase revenue.

“All of us at the Kentucky Lottery are excited to be chosen as the first state to test this new system, and we’re looking forward to seeing how it performs in the marketplace,” said Kentucky Lottery President and CEO Mary Harville. The Kentucky Lottery is one of the Top 20 lotteries in the world for instant game per capita sales.

SCiQ InLane is the first solution that securely integrates with the retailer’s point-of-sale system to sell lottery instant games via technology from payments partner Blackhawk Network. The technology features automated instant game dispensing under the retail checkout counter with a high-visibility, dynamic menu display of the games on sale. The system provides real time data analytics to the retailer and the lottery.

“Consumer data is a critical element to better serve our customers. The SCiQ solution provides us with the data needed to better serve our lottery players,” said Jarrod Cummins, Director of Prepaid Services for Kroger, the largest of the Kentucky Lottery’s grocery store partners. “Through our partnership with Scientific Games and long-standing relationship with Blackhawk Network, Kroger is delighted to be the first grocery store partner for checkout line lottery sales in the U.S. and we look to expanding this effort to additional states.”

SCiQ InLane is an intelligent system that automatically tracks every unit of instant product sold in real-time. This level of category management, previously not available to retailers, allows greater visibility into sales performance and available inventory. SCiQ also automates the retailer’s shift accounting reconciliation process, and significantly reduces labor costs.

“Blackhawk is committed to bringing greater convenience to new and existing consumers purchasing instant lottery games,” said Richard Gotlieb, Vice President of Lottery and Sports Betting at Blackhawk Network. “Partnering with Scientific Games, Kroger and the Kentucky Lottery to support this innovative in-lane solution is yet another option that enables our retail partners to drive incremental sales and offer greater convenience to their customers.”

Blackhawk is a global financial technology company and a leader in payment technologies and solutions. Through this partnership, Blackhawk will further enable the delivery of a more convenient lottery experience at retail, and more importantly, open untapped opportunities for the Kentucky Lottery and Kroger to engage consumers.

“The convenience offered by the SCiQ InLane solution is a game changer for consumers who are focused on getting in and out of the grocery store quickly for many reasons, including COVID-19 concerns,” said Michael Martin, VP Retail Solutions for Scientific Games. “SCiQ InLane offers unparalleled product security and the ability to engage light and lapsed players who don’t visit lottery self-service machines in the store.”

Scientific Games is leading the U.S. lottery industry’s modernization with checkout line, cashless and self-service solutions. The Company is the world’s largest creator, manufacturer and services provider of lottery instant games, with products generating more than 70% of global instant game retail sales.

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