Scientific Games Awarded Arizona Lottery Instant Ticket Contract
Annual Revenue Estimated at $2 Million
NEW YORK, June 15 /PRNewswire-FirstCall/ -- Scientific Games (Nasdaq: SGMS) announced it has been awarded a vendor contract to supply instant tickets to the Arizona Lottery. The contract, which is expected to begin January 14, 2010, has an initial term of five years with five one-year extension options. Scientific Games was chosen in an open and competitive procurement process and revenue to Scientific Games is estimated to total approximately $2 million per year.
"Scientific Games has been our vendor since inception in 1981 and in that time our instant ticket sales have grown tremendously," said Jeff Hatch-Miller, Executive Director of the Arizona Lottery. "Earlier this year we introduced one of Scientific Games' Spotlight Games and have been extremely happy with the results. We hope to continue this tradition of growth and provide more revenue for our state during these tough economic times."
"We are very pleased with this show of confidence from the Arizona Lottery," said Joe Wright, CEO of Scientific Games. "The Arizona Lottery has been one of the more pro-active lotteries in the recent economic downturn, with instant ticket sales experiencing 10% year-over-year growth so far this year. This is especially impressive growth given the current economic environment and we are pleased to have the Arizona Lottery acknowledge our efforts."
In 2008, the Arizona Lottery generated $473 million in retail sales, 53% of which came from the sale of instant tickets. Since 1981, the Arizona Lottery has contributed over $2 billion to state programs that make Arizona a better place to live.
About Scientific Games
Scientific Games Corporation is a 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.