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Scientific Games Wins Five-Year Contract for Arizona Lottery's Integrated Lottery Gaming System


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Nov 05, 2015

LAS VEGAS and ATLANTA – November 5, 2015Scientific Games Corporation (“Scientific Games” or the “Company”) (NASDAQ: SGMS) today announced that its wholly-owned subsidiary Scientific Games International, Inc. (“SGI”) was awarded a new contract to provide an integrated lottery gaming system to the Arizona Lottery (the “Lottery”). Under the contract, the Company will provide facilities management services for the Arizona Lottery’s central computer systems, software, data center operations, retailer telecommunications network, retail point-of-sale and player self-service technology and peripherals, in-store digital advertising content system, mobile applications and marketing services as well as technical and marketing staff support. The effective date of the agreement is August 31, 2015 and will remain in effect for five years after the date on which the Company completes installation, and obtains the Lottery’s acceptance of the gaming system.

The Arizona Lottery’s five-year contract with Scientific Games, which was awarded after a competitive procurement process, will replace a competitor’s system and is expected to begin on or about August 31, 2016 and may be extended by the Lottery for up to an additional five years. The Lottery’s total retail sales were $750 million (USD) in fiscal year 2015.

Arizona Lottery Executive Director, Tony V. Bouie, said, “The Arizona Lottery has aggressive growth goals. Scientific Games, as an industry leader in innovation, gives us the best opportunity for significant retail sales growth in an ever-changing environment.”

Scientific Games began providing instant games to the Arizona Lottery at the Lottery’s inception in 1981 and has provided instant games and licensed properties to the Lottery throughout the years. The Company proposed a comprehensive suite of innovative products and services that focus on supporting the Arizona Lottery’s strategic plans to meet evolving consumer needs and maximize total lottery sales and profits in the coming years.

Pat McHugh, Senior Vice President, North American Lottery Systems for Scientific Games, said, “The Arizona Lottery has worked hard to establish a very strong brand with consumers in the state for more than three decades. Under our instant products contract with the Lottery, Scientific Games has been a part of their remarkable success growing instant games sales in Arizona. We appreciate the continued trust in our products and services, and we look forward to also innovating with the Lottery on their draw game portfolio to help drive total sales and maximize profits for the Lottery and their retailers.”

Scientific Games provides products, technology and services to more than 150 lotteries worldwide, including North America, South America, Europe, Asia and Australia.

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 us at

About Arizona Lottery
The Arizona Lottery operates entirely from the revenue it generates through the sale of its products; it doesn’t receive aby General Fund dollars from the State. Proceeds from sales of Lottery tickets – nearly $3.4 million per week, fund a variety of state programs. Since July 1981, the Arizona Lottery has paid out more than $6.2 billion in prizes to players, more than $3.3 billion in net funding to the state and more than $735 million in commissions to retailers. Learn more at

Lottery Communications
Therese Minella +1 770-825-4219

Media Relations
Mollie Cole +1 773-532-7981

Investor Relations
Bill Pfund +1 702-532-7981

Forward-Looking Statements
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. Therefore, you should not rely on any of these forward-looking statements as predictions of future events. 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 slow growth of new gaming jurisdictions, slow addition of casinos in existing jurisdictions, and declines in the replacement cycle of gaming machines; ownership changes and consolidation in the gaming industry; opposition to legalized gaming or the expansion thereof; inability to adapt to, and offer products that keep pace with, evolving technology, including any failure of our investment of significant resources in our R&D efforts; inability to develop successful products and services and capitalize on trends and changes in our industries, including the expansion of internet and other forms of interactive gaming; laws and government regulations, including those relating to gaming licenses and environmental laws; dependence upon key providers in our social gaming business; inability to retain or renew, or unfavorable revisions of, existing contracts, and the inability to enter into new contracts; level of our indebtedness, higher interest rates, availability or adequacy of cash flows and liquidity to satisfy indebtedness, other obligations or future cash needs; inability to reduce or refinance our indebtedness; restrictions and covenants in debt agreements, including those that could result in acceleration of the maturity of our indebtedness; protection of our intellectual property, inability to license third party intellectual property, and the intellectual property rights of others; security and integrity of our products and systems and reliance on or failures in information technology and other systems; challenges or disruptions relating to the implementation of a new global enterprise resource planning system; failure to maintain internal control over financial reporting; 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; failure to achieve the intended benefits of our acquisitions; incurrence of restructuring costs; implementation of complex revenue recognition standards or other new accounting standards; changes in estimates or judgments related to our impairment analysis of goodwill or other intangible assets; 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, restrictions on the payment of dividends from earnings, restrictions on the import of products and financial instability, including the potential impact to our business resulting from the affirmative vote in the U.K. to withdraw from the EU, and the potential impact to our instant lottery game concession or VLT lease arrangements resulting from the recent economic and political conditions in Greece; changes in tax laws or tax rulings, or the examination of our tax positions; dependence on key employees; litigation and other liabilities relating to our business, including litigation and liabilities relating to our contracts and licenses, our products and systems, our employees (including labor disputes), intellectual property, environmental laws and our strategic relationships; 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.