Jun 14, 2016
LAS VEGAS and ATLANTA – June 14, 2016 –Scientific Games Corporation (NASDAQ: SGMS) (“Scientific Games” or the “Company”) today announced that the Company will bring its world-leading Cooperatives Services ProgramSM (“CSPSM”) for instant game management to the North Carolina Education Lottery (the “Lottery”). Scientific Games was awarded a new eight-year contract for CSP services, which may be extended by the Lottery for two additional years.
Alice Garland, Executive Director, North Carolina Education Lottery, said, “Scientific Games is a proven instant game partner to the North Carolina Education Lottery. The growth potential and efficiencies created by new CSP partnership will enable us to optimize the player and retailer experience and ultimately, the winners will be our state’s educational programs.” Currently, instant games represent two-thirds of the North Carolina Education Lottery’s revenue.
The North Carolina Education Lottery CSP agreement includes instant game design, security and manufacturing, marketing services, inside sales, warehousing and distribution. CSP is driven by patented Scientific Games technologies including MAP™ for marketing analysis and planning, and the SciTrak Ultra™ supply chain solution featuring the OrderCast™ predictive ordering system and OrderSorter™, an automated instant game sorting system. The proprietary technologies integrate with retail sales functionality to help the Lottery manage instant products.
The company’s CSP solution has been refined over three decades and is 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.
John Schulz, Senior Vice President, Global Instant Products for Scientific Games, said, “We are continually advancing the secure technologies in our CSP solution and will apply these technologies, along with our global insights on instant category management, to help the North Carolina Education Lottery continue their track record of growth in year-over-year instant game sales and profit each year since the Lottery began.”
Scientific Games creates and manufactures instant games for 23 of the world’s Top 25 lotteries for instant game per capital sales (La Fleur’s 2016 Almanac). Six of the Top 10 utilize CSP services for instant product management.
The Company created the first secure instant lottery game in 1974 and today provide lottery games, 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.
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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.