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Scientific Games Signs Lottery System and Central Monitoring System Extension with Delaware State Lottery

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Apr 03, 2014

NEW YORK – April 3, 2014Scientific Games Corporation (NASDAQ: SGMS) (the “Company”) today announced that it has signed a three-year extension to its contract with the Delaware State Lottery to supply both lottery and central monitoring systems. The extension, which will continue to provide for a range of services and support for draw-based lottery, keno, video lottery games and instant game pass-through transactions, will begin in February 2015. The extension also calls for the installation of a minimum of 450 WMS multi-game video lottery terminals (VLTs) at charitable gaming organizations in Delaware. The VLTs will be monitored and controlled by the Company’s AEGIS® central management system, one of the most flexible, open technology systems in the lottery industry.

“Our successful partnership with Scientific Games has contributed considerable growth to the Delaware Lottery,” said Vernon Kirk, Delaware State Lottery Director. “We are excited that for the first time ever, licensed charitable gaming organizations across Delaware will now benefit from fan-favorite lottery terminals with the added security and controls of a central monitoring system.”

“The Delaware State Lottery is well known as an industry leader in responsible regulating new gaming opportunities to create jobs and maximize for the citizens of Delaware. Starting with the first instant games in 1976, Scientific Games has been a trusted supplier to the Delaware State Lottery, delivering innovative games, technology and services. In late 2013, we also helped the Lottery successfully launch the first comprehensive iGaming system in the U.S.,” said Pat McHugh, President of North American Lottery Systems for Scientific Games. “We are honored to continue our long-standing relationship with the Delaware State Lotttery with this contract extension and look forward to continued success.”

“This agreement demonstrates the synergies we envisioned with the acquisition of WMS, whereby Scientific Games can offer a wide variety of premium products and solutions across multiple distribution channels for our customers,” said Brooks Piece, Chief Revenue Officer of Gaming for Scientific Games. “By leveraging the expanded resources of our combined organization, we are able to provide the Delaware State Lottery with a comprehensive offering of instant, draw and keno games, a central management system, video lottery terminals, sports betting and iGaming to support the Lottery’s continued growth.”

In fiscal year 2013, the Delaware State Lottery had a record year with $47.5 million in instant game sales, as well as a 9% increase in draw game sales from fiscal year 2012 to 2013 driven by stronger sales of Powerball®, Hot Lotto® and sales from newly launched keno at select retailers.

About Scientific Games
Scientific Games Corporation is a leading developer of technology-based products and services and associated content for worldwide gaming and lottery markets.  The Company's portfolio includes instant and draw-based lottery games; electronic gaming machines and game content; server-based lottery and gaming systems; sports betting technology; loyalty and rewards programs; and social, mobile and interactive content and services.  For more information, please visit: www.scientificgames.com.

Company Contacts
Investor Relations
William Pfund, (847) 785-3167

Media Relations
Lauren Johnson, (212) 318-9152

Forward-Looking Statements
In this press release, the Company makes "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements describe future expectations, plans, results or strategies and can often be identified by the use of terminology such as "may," "will," "estimate," "intend," "continue," "believe," "expect," "anticipate," "targeted," "should," "could," "potential," "opportunity," or similar terminology. These statements are based upon management's current expectations, assumptions and estimates and are not guarantees of timing, future results or performance.  Actual results may differ materially from those contemplated in these statements due to a variety of risks and uncertainties and other factors, including, among other things:  competition; U.S. and international economic and industry conditions; slow growth of new gaming jurisdictions; slow addition of casinos in existing jurisdictions; declines in the replacement cycle of gaming machines; ownership changes and consolidation in the casino industry; opposition to the expansion of legalized gaming; ability to adapt to, and offer products that keep pace with, evolving technology; ability to develop successful gaming concepts and content; laws and government regulation, including those relating to gaming licenses and environmental laws; inability to identify and capitalize on trends and changes in the lottery and gaming industries, including the expansion of interactive gaming; dependence upon key providers in our social gaming business; retention and renewal of existing contracts and entry into new or revised contracts; level of our indebtedness; availability and adequacy of cash flows to satisfy obligations or future needs; restrictions and covenants in our debt agreements; protection of our intellectual property; ability to license third party intellectual property; intellectual property rights of others; security and integrity of our software and systems and reliance on or failures in our information technology systems; natural events that disrupt our operations or those of our customers, suppliers or regulators; inability to benefit from, and risks associated with, strategic equity investments and relationships; inability of our joint venture to meet the net income targets or otherwise to realize the anticipated benefits under its private management agreement with the Illinois Lottery; inability of our joint venture to meet the net income targets or other requirements under its agreement to provide marketing and sales services to the New Jersey Lottery or otherwise to realize the anticipated benefits under such agreement (including as a result of a protest); failure to realize the anticipated benefits related to the award to our consortium of an instant lottery game concession in Greece; failure to achieve the intended benefits of the WMS acquisition, including due to the inability to realize synergies in the anticipated amounts or within the contemplated time-frames or cost expectations, or at all; inability to complete and integrate future acquisitions; restructuring costs; revenue recognition standards; impairment charges; fluctuations in our results due to seasonality and other factors; dependence on suppliers and manufacturers; risks relating to foreign operations, including fluctuations in foreign currency exchange rates; dependence on our employees; litigation and other liabilities relating to our business, including litigation and liabilities relating to our contracts and licenses, our products and systems, our employees, intellectual property and our strategic relationships; influence of certain stockholders; and stock price volatility. Additional information regarding risks and uncertainties and other factors that could cause actual results to differ materially from those contemplated in forward-looking statements is included from time to time in the Company's filings with the Securities and Exchange Commission ("SEC") (including in our Annual Report on Form 10-K filed with the SEC on March 17, 2014 and in our subsequent periodic reports), including under the heading "Risk Factors" in the Company's periodic reports.  Forward-looking statements speak only as of the date they are made and, except for the Company's ongoing obligations under the U.S. federal securities laws, the Company undertakes no obligation to publicly update any forward-looking statements whether as a result of new information, future events or otherwise.