Scientific Games Awarded Massachusetts Lottery Primary Instant Ticket Contract
Annual Revenue Estimated at Approximately $12 Million
NEW YORK, May 13 /PRNewswire-FirstCall/ -- Scientific Games (Nasdaq: SGMS) announced it has again been selected as the primary vendor to supply instant tickets and related services for the Massachusetts State Lottery. The contract, which is expected to begin July 2009, has an initial term of three years with two one-year extension options. Scientific Games was chosen in an open and competitive procurement process and revenue to Scientific Games is based on a price per thousand estimated to be approximately $12 million per year.
"The Massachusetts State Lottery has created an unparalleled instant ticket success story and become an icon in the lottery world. We have worked with the Massachusetts Lottery since inception and we are very pleased to continue our long-term partnership," said Joe Wright, CEO of Scientific Games. "The Massachusetts Lottery is the perfect example of what a state lottery can be and we are looking forward to helping them generate record results."
"Scientific Games has helped the Massachusetts Lottery to achieve record sales year after year to the point where instant tickets now generate 70% of our lottery's total retail sales," said Mark J. Cavanagh, Director of the Massachusetts State Lottery. "We are pleased to continue our relationship with Scientific Games in growing the instant ticket lottery and contributing more to the cities and towns of the Commonwealth."
In fiscal year 2008, the Massachusetts State Lottery generated over $4.7 billion in retail sales and contributed nearly $1.0 billion to the cities and towns of the Commonwealth.
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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Forward-Looking Statements
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.