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Scientific Games' Successful Partnership with Georgia Lottery Corporation Extended for Seven Years

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Jun 16, 2016

LAS VEGAS and ATLANTA – June 16, 2016Scientific Games Corporation (NASDAQ: SGMS) (“Scientific Games” or the “Company”) today announced that the Company will continue to provide its world-leading instant games and Cooperative Services ProgramSM (“CSPSM”) for instant game management to the Georgia Lottery Corporation (the “Lottery”) with a seven-year extension of the current instant games contract.

Scientific Games has served as the Lottery’s instant game partner since the Lottery’s inception in 1993. The Company played a key role in growing the Lottery’s instant games to a U.S. $3 billion consumer product category in 2015, increasing retail sales 18 percent in the last five years. Recently, Scientific Games’ Jumbo Bucks games surpassed the $10 billion mark for all-time retail sales in the state, and remain the top-selling games for the Georgia Lottery. The Georgia Lottery Corporation is currently ranked No. 2 in the world for instant game per capita sales (La Fleur’s Almanac).

Debbie Alford, President and CEO of the Georgia Lottery Corporation, said, “We look forward to continuing our partnership for Scientific Games in delivering innovative, high-quality and entertaining, instant scratch games for Georgia Lottery players. The success of Georgia’s instant scratch product, and our collaboration with Scientific Games, has been instrumental in generating more than $17 billion for education – benefitting millions of Georgia students and their families.”

The instant game CSP agreement for the Georgia Lottery includes game design, security, manufacturing, marketing services, warehousing and distribution. CSP is driven by Scientific Games patented and proprietary technologies featuring MAP™ for marketing analysis and planning, and the SciTrak Ultra™ supply chain solution, which includes a predictive ordering system and an automated instant game sorting system. All of the technologies integrate with retail sales functionality to help manage instant products for the Lottery.

John Schulz, Senior Vice President, Global Instant Products for Scientific Games, said, “The Georgia Lottery is one of the most successful lotteries in the world. We have worked to create and manage a portfolio of instant games delivering record-breaking retail sales, and most importantly, record-breaking returns to the Lottery’s educational beneficiaries in the state.”

The Company’s CSP partnerships have been refined over more than three decades and are currently in place in 20 lottery jurisdictions worldwide. In fiscal year 2015, U.S. lotteries utilizing CSP delivered 50 percent higher average sales for instant games per lottery retailer, and more than $1 billion in combined growth in the instant product category for the 11 domestic lotteries participating in the program.

Scientific Games creates the games that account for 75 percent of the world’s instant lottery game retail revenues. The Company supplies 23 of the world’s top 25 lotteries ranked by instant game per capital sales. Scientific Games created the world’s first secure instant game in 1974. Today, with operations on six continents, the Company provides lottery game services, systems and retail technology to more than 150 lotteries globally.

© 2016 Scientific Games Corporation. All Rights Reserved.

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

Lottery Communications
Therese Minella +1 770-825-4219

Corporate Communications
Susan Cartwright +1 702-532-7981

Investor Relations
Bill Pfund +1 702-532-7981

Forward-Looking Statements
In this press release, Scientific Games 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," "plan," "continue," "believe," "expect," "anticipate," "target," "should," "could," "potential," "opportunity," "goal," 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. Therefore, you should not rely on any of these forward-looking statements as predictions of future events. 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, including slow growth of new gaming jurisdictions, slow addition of casinos in existing jurisdictions, and declines in the replacement cycle of gaming machines; ownership changes and consolidation in the gaming industry; opposition to legalized gaming or the expansion thereof; inability to adapt to, and offer products that keep pace with, evolving technology, including any failure of our investment of significant resources in our R&D efforts; inability to develop successful products and services and capitalize on trends and changes in our industries, including the expansion of internet and other forms of interactive gaming; laws and government regulations, including those relating to gaming licenses and environmental laws; dependence upon key providers in our social gaming business; inability to retain or renew, or unfavorable revisions of, existing contracts, and the inability to enter into new contracts; level of our indebtedness, higher interest rates, availability or adequacy of cash flows and liquidity to satisfy indebtedness, other obligations or future cash needs; inability to reduce or refinance our indebtedness; restrictions and covenants in debt agreements, including those that could result in acceleration of the maturity of our indebtedness; protection of our intellectual property, inability to license third party intellectual property, and the intellectual property rights of others; security and integrity of our products and systems and reliance on or failures in information technology and other systems; challenges or disruptions relating to the implementation of a new global enterprise resource planning system; failure to maintain internal control over financial reporting; 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; failure to achieve the intended benefits of our acquisitions; incurrence of restructuring costs; implementation of complex revenue recognition standards or other new accounting standards; changes in estimates or judgments related to our impairment analysis of goodwill or other intangible assets; 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, restrictions on the payment of dividends from earnings, restrictions on the import of products and financial instability, including the potential impact to our business resulting from the affirmative vote in the U.K. to withdraw from the EU, and the potential impact to our instant lottery game concession or VLT lease arrangements resulting from the recent economic and political conditions in Greece; changes in tax laws or tax rulings, or the examination of our tax positions; dependence on key 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 (including labor disputes), intellectual property, environmental laws and our strategic relationships; influence of certain stockholders; and stock price volatility.

Additional information regarding risks, 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 our filings with the SEC, including the Company's current reports on Form 8-K, quarterly reports on Form 10-Q and its latest annual report on Form 10-K filed with the SEC on February 29, 2016 (including under the headings "Forward Looking Statements" and "Risk Factors"). Forward-looking statements speak only as of the date they are made and, except for Scientific Games' ongoing obligations under the U.S. federal securities laws, Scientific Games undertakes no obligation to publicly update any forward-looking statements whether as a result of new information, future events or otherwise.