Scientific Games Wins Oklahoma Lottery’s 10-Year Gaming Systems Technology and Instant Game Management Contract
Oklahoma Scratchers Retail Sales Have Grown Nearly 200% in Three Years
LAS VEGAS and ATLANTA – October 28, 2020 – Scientific Games Corporation (NASDAQ: SGMS) (“Scientific Games” or the “Company”) announces it won a new, 10-year contract from the Oklahoma Lottery (or the “Lottery”) to supply lottery central gaming system services and its world-leading Scientific Games Enhanced Partnership (SGEP) program, which provides game category management of the Oklahoma Scratchers. Under the new contract, which may be extended by the Lottery for five additional years, the Company will also provide a combination of its integrated suite of value-add products including SCiQ® instant game retail ecosystem, PlayCentral® self-service retail terminals, Infuse™ business intelligence software, and gem|Intelligence® retailer intelligence software. The Oklahoma Lottery has partnered with Scientific Games on all of its technology and games since its inception in 2005.
In the past three years, Oklahoma Scratchers retail sales grew by almost 200%, contributing an incremental $50 million in returns to the state for education and setting a record for instant game retail sales growth in the U.S. (FY2017-FY2020, July to June standard lottery fiscal year). The Lottery received legislative relief on mandated margin percentages in 2017, which allowed for more prizes and an entertaining game portfolio for consumers. Over the past five years, the Oklahoma Lottery experienced a remarkable 10% CAGR increase in total retail sales.
“We have accomplished great things during our 15-year collaboration with Scientific Games, and we look forward to continuing our efforts to responsibly grow the Oklahoma Lottery’s profits to benefit teachers and students in our state,” said Jay Finks, Deputy Director of Oklahoma Lottery. Finks will become the Executive Director on November 1.
One of the youngest lotteries in the U.S., the Oklahoma Lottery recently surpassed the $1 billion in contributions to the Oklahoma Education Lottery Trust Fund maximizing revenue for public education, a milestone that coincided with the Lottery’s 15th Anniversary.
“Scientific Games congratulates the Oklahoma Lottery achieving $1 billion in education funding, and we are honored to support their impressive growth returning more proceeds to these critical programs in the future. We appreciate our partnership in creating an entertaining game portfolio, providing advanced technology to power the Lottery ecosystem and improve the retail experience, expertly managing Oklahoma Scratchers products, and sharing retailer analytics that help intelligently maximize sales and profits,” said Pat McHugh, EVP & Lottery Group Chief Executive for Scientific Games. “We also congratulate the Oklahoma Lottery on achieving the highest growth for instant game sales in the U.S. over the past three years and look forward to another successful 10 years of collaboration.”
As a full-line provider to the Oklahoma Lottery, Scientific Games supplies the central gaming system and services across the Lottery’s nearly 2,000 retailers, supported by a cross-functional team of product and operational experts to support all aspects of the Lottery’s mission. Through the performance-driven SGEP program, the Company designs, manufactures and manages all aspects of Oklahoma Scratchers games, including analytics and insights, advanced logistics, and retailer optimization. In addition to its award-winning PlayCentral self-service retail terminals, the new contract includes the Company’s SCiQ technology, which automates retailer performance tracking and accounting processes, securely displays games and tracks every unit of product sold in real-time. The new contract also includes Scientific Games’ Infuse business intelligence platform and cloud-based gem|Intelligence retailer relationship management software.
Scientific Games is a U.S.-based company providing games, technology and services to more than 150 lotteries around the globe, including nearly every North American lottery.
PHOTO CAPTION: (L to R) Oklahoma Lottery Deputy Director Jay Finks celebrates the $1 billion milestone for education in the state with Scientific Games Oklahoma General Manager Jamie Evans, retiring Lottery Director Rollo Redburn and Scientific Games Senior Director Business Development Allen Blankinship.
About Scientific Games
Scientific Games Corporation (NASDAQ: SGMS) is a world leader in entertainment offering dynamic games, systems and services for casino, lottery, social gaming, online gaming and sports betting. Scientific Games offers the gaming industry's broadest and most integrated portfolio of game content, advanced systems, cutting-edge platforms and professional services. Committed to responsible gaming, Scientific Games delivers what customers and players value most: trusted security, engaging entertainment content, operating efficiencies and innovative technology. For more information, please visit scientificgames.com.
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 can be identified by words such as "will," "may," and "should." 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, uncertainties and other factors, including those factors described in our filings with the Securities and Exchange Commission (the “SEC”), including Scientific Games’ 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 1, 2021 (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.