LAS VEGAS and ATLANTA – November 5, 2015 – Scientific Games Corporation (“Scientific Games” or the “Company”) today announced that its online systems will continue to power the Iowa Lottery (“the Lottery”) with an extension of the Company’s existing seven-year contract through June 2019. Scientific Games works in close partnership with the Lottery and its 2,400 retailers, providing an online system, retail terminals, in-store digital content displays and ticket checkers for players. The Company launched the Lottery’s first mobile app and implemented automated systems for instant game ordering and shipment functionality.
Terry Rich, CEO, Iowa Lottery, said, “Scientific Games has been our trusted systems provider for nearly 20 years, providing the Iowa Lottery with a high level of operational integrity and technology that has helped drive growth and improve security. They are a valued partner in our mission to generate revenues for the state of Iowa while providing fun, entertaining lottery games and promotions to Iowans.”
Under the current contract, Scientific Games implemented a systems conversion for the Lottery in 2011. Iowa Lottery sales increased 14 percent the first year (FY2012) the new system was in place. On average, sales during the four fiscal years following conversion increased by more than 25 percent ($66 million per year) over the average annual sales the four years prior.
Pat McHugh, Vice President, North American Lottery Systems for Scientific Games, said, “The Iowa Lottery has a long history of integrity, thought leadership and marketplace innovation, led by a seasoned, capable and award-winning management team. Since our merger with Bally Technologies, Scientific Games has created strong connections between our gaming and lottery systems groups to drive further innovation. We look forward to continued collaboration to provide 24/7 service, maintain best-in-class systems operations and make it easy and convenient for retailers to sell Iowa Lottery games for the enjoyment of players in the state.”
With operations on six continents, Scientific Games provides lottery games, services, systems and retail technology to more than 150 lotteries globally, including nearly every North American lottery.
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 www.scientificgames.com.
About Iowa Lottery
Since the Iowa Lottery’s start in 1985, its profits have helped make Iowa a better place to live, work and raise a family. The Lottery provides entertainment and prizes to its players while at the same time raising billions of dollars for the state programs that benefit all Iowans. Through the years, Lottery funds have been used in a variety of ways to enhance the state, including projects to create new recreation areas, support research at Iowa’s public universities, benefit Iowa veterans, develop new products and techniques for agriculture, and promote tourism. For that, the Iowa Lottery thanks its players. When you play the Lottery, Iowa wins.
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. 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 declines in or slow growth of lottery retail sales or gross gaming revenues, reductions in or constraints on capital spending by gaming or lottery operators and bankruptcies of, or credit risk relating to, customers; limited growth from new gaming jurisdictions, slow addition of casinos in existing jurisdictions and declines in the replacement cycle of existing gaming machines; ownership changes and consolidation in the casino industry; opposition to legalized gaming or the expansion thereof; ability to adapt to, and offer products that keep pace with, evolving technology; ability to develop successful gaming concepts and content; laws and government regulations, including those relating to gaming licenses and environmental laws; inability to identify and capitalize on trends and changes in the gaming and lottery industries, including the expansion of interactive gaming; dependence upon key providers in our social gaming business; retention and renewal of existing contracts or entry into new or revised contracts; level of our indebtedness, higher interest rates, availability and adequacy of cash flows and liquidity to satisfy obligations or future needs, and restrictions and covenants in our debt agreements; protection of our intellectual property, ability to license third party intellectual property, and the intellectual property rights of others; security and integrity of our software and systems and reliance on or failures in our information technology systems; 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, including (i) the inability of our joint venture to meet the net income targets or otherwise to realize the anticipated benefits under its private management agreement with the Illinois lottery (or in connection with any termination thereof), (ii) the inability of our joint venture to meet the net income targets or other requirements under its agreement to provide marketing and sales services to the New Jersey lottery or otherwise to realize the anticipated benefits under such agreement and (iii) failure to realize the anticipated benefits related to the award to our consortium of an instant lottery game concession in Greece; failure to achieve the intended benefits of the Bally acquisition or the WMS acquisition, including due to the inability to successfully integrate such acquisitions or realize synergies in the anticipated amounts or within the contemplated timeframes or cost expectations, or at all; litigation relating to the Bally acquisition; disruption of our current plans and operations in connection with the Bally acquisition and the WMS acquisition (including in connection with the integration of Bally and WMS), including departure of key personnel or inability to recruit additional qualified personnel or maintain relationships with customers, suppliers or other third parties; costs, charges and expenses relating to the Bally acquisition and the WMS acquisition; inability to complete or successfully integrate future acquisitions; incurrence of restructuring costs, revenue recognition standards and impairment or asset write-down charges; 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 and restrictions on the payment of dividends from earnings, restrictions on the import of products and financial instability, including the potential impact to our instant lottery game concession or VLT lease arrangements resulting from the recent economic and political conditions in Greece; dependence on our key employees; litigation and other liabilities relating to our business, including risks relating to product defects or other claims relating to products; 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 March 17, 2015 (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.