Scientific Games Signs Amendment to Extend Tennessee Lottery Contract Four Years
Revenue Estimated at $9 Million Per Year
NEW YORK, Feb. 27 /PRNewswire-FirstCall/ -- Scientific Games (Nasdaq: SGMS) announced it has signed an amendment to extend its current contract as the primary vendor to supply instant tickets and related services including warehousing and distribution to the Tennessee Education Lottery Corporation for an additional four years. The amendment commences in April 2011 and lengthens the current contract to 2015. Revenue to Scientific Games is estimated at approximately $9 million per year.
Rebecca Hargrove, President and CEO of the Tennessee Education Lottery stated, "Scientific Games has been a valued partner to the Tennessee Education Lottery since its inception in 2004, and we are pleased that this relationship will continue for four additional years. We are confident that continuing this successful partnership will enable us to grow sales and maximize dollars for the education program funded by the Tennessee Lottery."
"Ms. Hargrove and the Tennessee Lottery are one of the most advanced states in the U.S. in the way they are expanding their lottery in order to fund education programs and they are a valuable revenue driver for the state," said Joseph Wright, CEO of Scientific Games. "We are proud to be their partner with this contract extension and look forward to a long relationship."
In 2008, the Tennessee Lottery produced $796 million in instant ticket sales and returned $286 million to education. Since inception in 2004, the Tennessee Lottery has raised more than $1.3 billion to fund specific education programs.
About Scientific Games
Scientific Games Corporation is the leading integrated supplier of instant tickets, systems and services to lotteries worldwide, a leading supplier of server based gaming machines and systems, Amusement and Skill with Prize betting terminals, interactive sports betting terminals and systems, and wagering systems and services to pari-mutuel operators. It is also a licensed pari-mutuel gaming operator in Connecticut, Maine and the Netherlands and is a leading supplier of prepaid phone cards to telephone companies. Scientific Games' customers are in the United States and more than 60 other countries. For more information about Scientific Games, please visit our web site at www.scientificgames.com.
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Certain statements in this press release which are not historical facts, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements, including those relating to timing of contracts, renewals or other events, business plans and performance objectives, 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 in our markets; technological change; protection of intellectual property; security and integrity of software and systems; laws and government regulation, including those relating to gaming licenses, permits and operations; seasonality; dependence on suppliers and manufacturers; factors associated with foreign operations; failure to retain, renew or perform on contracts; resolution of pending or future litigation; and other factors described from time to time in our filings with the SEC, including our most recent Annual Report on Form 10-K. Forward-looking statements speak only as of the date they are made, and except for our ongoing obligations under the U.S. federal securities laws, we undertake no obligation to publicly update any forward-looking statements whether as a result of new information, future events or otherwise.