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Scientific Games Signs Primary Instant Game Contract with California Lottery

Dec 03, 2013

NEW YORK – December 3, 2013Scientific Games Corporation (NASDAQ: SGMS) (the “Company”) today announced that it has signed a contract with the California State Lottery to be the primary provider of instant games and associated support services, including account management, instant game design, product and player research, game planning, and integrated marketing programs. The six-year contract, which begins December 1, 2013 was awarded to the Company following a competitive procurement process and includes options for the California Lottery to extend the contract for up to six additional years. Revenue to Scientific games will continue to be based on a percentage-of-sales basis.

“We are pleased to continue our relationship with Scientific Games. Their winning proposal was the only bid to receive a ‘significantly exceeds’ rating and we know they are capable of providing the best offering to the California State Lottery in terms of experience, capability and game innovation,” said Paula LaBrie, Acting Director for the California State Lottery. “Scientific Games gives us access to a great team of experienced professionals to work with us on the execution of our business plan initiatives following a record breaking year of contributions to education.”

“The California Lottery is a long valued customer of Scientific Games. Our history together began in 1985 when the lottery started. We are honored to be selected for our creativity, game innovation and unique capability to continue to support the Lottery’s growth,” said James Kennedy, Executive Vice President and Group Chief Executive of Lottery for Scientific Games.

In fiscal year 2012-13, the California Lottery celebrated record instant game sales of $3.0 billion, an increase of 8.5% over the prior fiscal year. The Lottery recently launched Fortune 55, the first HTML 2nd Chance interactive game in the U.S. lottery industry.

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
Cindi Buckwalter, (212) 754-2233

Media Relations
Aimee Remey, (212) 754-2232

About the California Lottery
The mission of the California Lottery is to provide supplemental funding to California schools while simultaneously supporting local communities. More than 96 cents of every dollar spent by our players goes back to local communities in the form of contributions to public schools and college, prizes and retail compensation. The California Lottery urges its customers to play responsibly and within their budgets.

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," "should," "could," "potential," "opportunity," or similar terminology. Forward-looking statements may contain expectations regarding activities, financial position, operations, synergies and other results following our acquisition of WMS. 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; material adverse changes in economic and industry conditions; technological change; retention and renewal of existing contracts and entry into new or revised contracts; effect of indebtedness on our operations and financial condition; availability and adequacy of cash flows to satisfy obligations and indebtedness or future needs; protection of our intellectual property; ability to license third party intellectual property; intellectual property rights of others; security and integrity of software and systems; reliance on information technology systems; laws and government regulation, including those relating to gaming licenses, permits and operations; inability to identify, complete and integrate future acquisitions; 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 ticket concession in Greece; the seasonality of our business; disruption of our current plans and operations in connection with our acquisition of WMS; 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 identify and capitalize on trends and changes in the lottery and gaming industries, including the potential expansion of regulated gaming via the internet; inability to enhance and develop successful gaming concepts; slow growth of gaming jurisdictions or the casino industry; decline in the replacement cycle of gaming machines; consolidation or ownership changes in the casino industry; dependence on suppliers and manufacturers; liability for product defects; fluctuations in foreign currency exchange rates and other factors associated with international operations; influence of certain stockholders; dependence on key personnel; failure to perform under our contracts; resolution of pending or future litigation; labor matters; 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 12, 2013 and in our subsequent 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.