NEW YORK, Aug. 22, 2011 /PRNewswire/ -- Scientific Games Corporation (Nasdaq: SGMS) today announced that the Company has entered into a contract to be the primary supplier of instant ticket games and related services including game design, development and marketing for the New York Lottery. The Company was awarded this seven-year contract following a competitive procurement process, as previously announced on May 10, 2011, and final New York State approval was obtained on August 15, 2011. Revenue to Scientific Games will continue to be earned on a price-per-thousand tickets basis; however, in the new contract, the Company will also receive a percentage of net sales less prizes for instant ticket game management and marketing, and will be entitled to earn incentive awards based on the lottery achieving benchmark levels of performance.
"The final selection of Scientific Games as our primary printer was the result of a detailed evaluation process and a thorough analysis of the Company's capabilities," said Gordon Medenica, Director of the New York Lottery. "We believe this new incentive-based contract structure is a win-win for New York's school children as well as Scientific Games, a New York-based company."
"We are excited to once again be chosen as the primary vendor by the New York Lottery, the largest of any jurisdiction in the U.S. and the third highest on a per capita basis," commented Jim Trask, President of the Printed Products Group for Scientific Games. "This new arrangement will enable us to fully utilize our innovative content and marketing to drive sales for the Lottery and help them grow profits for Education."
In fiscal year 2010, the New York Lottery generated $6.8 billion in sales from traditional Lottery games, including $3.5 billion from its instant ticket business. During that same time period, The Lottery's traditional business brought in $2.1 billion in profit for education.
About the New York Lottery
The New York Lottery continues to be North America's largest and most profitable Lottery, contributing over $3 billion in fiscal year 2010-2011 to help support education in New York State. The Lottery's aid represents over 15 percent of total state education funding to local school districts.
Lottery revenue is distributed to local school districts by the same statutory formula used to distribute other state aid to education. It takes into account both a school district's size and its income level; larger, lower-income school districts receive proportionately larger shares of Lottery school funding.
About Scientific Games
Scientific Games Corporation is a global leader in providing customized, end-to-end gaming solutions to lottery and gaming organizations worldwide. Scientific Games' integrated array of products and services include instant lottery games, lottery gaming systems, terminals and services, and internet applications, as well as server-based interactive gaming machines and associated gaming control systems. For more information, please visit our website at www.scientificgames.com.
Cindi Buckwalter, Investor Relations
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," "could," "potential," "opportunity," or similar terminology. These statements are based upon management's current expectations, assumptions and estimates and are not guarantees of future results or performance. Actual results may differ materially from those projected 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; availability and adequacy of cash flows to satisfy obligations and indebtedness or future needs; protection of intellectual property; security and integrity of software and systems; laws and government regulation, including those relating to gaming licenses, permits and operations; inability to identify, complete and integrate future acquisitions; inability to complete the proposed acquisition of Barcrest Group Limited and Cyberview Technology CZ s.r.o.; inability to benefit from, and risks associated with, joint ventures and strategic investments and relationships; failure of the Company's Northstar joint venture to meet the net income targets or otherwise realize the anticipated benefits under its private management agreement with the Illinois Lottery; seasonality; inability to identify and capitalize on trends and changes in the lottery and gaming industries; inability to enhance and develop successful gaming concepts; dependence on suppliers and manufacturers; liability for product defects; fluctuations in foreign currency exchange rates and other factors associated with foreign operations; influence of certain stockholders; dependence on key personnel; failure to perform on 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, including under the heading "Risk Factors" in our 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.
SOURCE Scientific Games Corporation