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Scientific Games to Continue As Long-Time Instant Game Provider to Massachusetts Lottery

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Jul 31, 2015

LAS VEGAS and ATLANTA – August 20, 2015Scientific Games Corporation (“Scientific Games” or the “Company”) (NASDAQ: SGMS) today announced is has signed a one-year extension to its instant products contract with the Massachusetts Lottery (the “Lottery”) under which the Company will supply the Lottery with instant games, game design and marketing services. The Lottery and Scientific Games launched the world’s first secure instant lottery game together in 1974, and the Company has been the primary instant game supplier to the Lottery since 1987. Scientific Games will continue to provide instant game sales and services to the Lottery through 2016. For more then 40 years, the Massachusetts Lottery has ranked first in the world for instant game per capita sales (La Fleur’s 2015 Almanac).

Michael Sweeney, Interim Executive Directory, Massachusetts Lottery, said, “Our partnership with Scientific Games over the last four decades has helped the Massachusetts Lottery grow to become one of the most successful lotteries in the world. The partnership has greatly contributed to our ability to introduce innovative instant products that appeal to our players and generate critical aid for cities and towns across Massachusetts.” The lottery has posted record-breaking instant product sales for four consecutive years.

“We are honored to continue our longtime relationship with the No. 1 lottery in the world for instant games. Out work together has helped establish global best practices for lottery instant products,” said John Schulz, Senior Vice President, Instant Products for Scientific Games. “We look forward to continuing our collaboration and to implementing findings from our recent cross-jurisdictional player segmentation study with the Lottery to provide entertainment for today’s lottery players and help drive revenue for the state.” In addition to the design, programming and production of instant games, Scientific Games provides the Lottery with marketing services.

In 1974, Massachusetts was the first U.S. state lottery to sell $1 instant games as an alternative to the weekly jackpot game. Last year, the Lottery launched its first $30 instant game. In fiscal year 2015, the Massachusetts Lottery generated more than $5 billion in retail sales for the first time in its 44-year history, including over $3.5 billion in instant game sales.

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.

About Massachusetts Lottery
The Massachusetts Lottery introduced the world’s first instant ticket product, a $1 ticket named The Instant Game, in May 1974 – a move that revolutionized the lottery industry and established  Massachusetts as a lottery innovator. In the 41 years since, the Massachusetts Lottery has grown to be the world’s leader in instant ticket sales, generating over $3.3 billion annually.

© 2015 Scientific Games. All rights reserved.

Lottery Communications
Therese Minella +1 770-825-4219

Media Relations
Mollie Cole +1 773-532-7981

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 March 17, 2015 (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.