Leading Provider of Instant Lottery Ticket Cooperative Services in China
NEW YORK, July 19 /PRNewswire-FirstCall/ -- Scientific Games (Nasdaq:
SGMS) announced today that it has signed agreements to acquire a 50%
interest in the ownership of Guard Libang, a leading provider of instant
lottery ticket cooperative services in China. Guard Libang is an indirect
subsidiary of REXCAPITAL Financial Holdings Limited (0555.HK). Scientific
Games will pay approximately $27 million. The Company expects this
acquisition to be neutral to 2007 earnings, and accretive in 2008.
Guard Libang services contracts for the upgrade and construction of the
instant ticket management and sales system of the China Welfare Lottery
(CWL) in approximately 17 provinces as well as contracts with over 30 of
the country's wealthiest cities to distribute CWL instant tickets under a
cooperative services approach. These 17 provinces cover a population of
approximately 792 million with a network of approximately 48 thousand
retailers. This retailer base should grow to approximately 90 thousand
retailers over the next two to three years.
Lorne Weil, Chairman and CEO of Scientific Games commented on the deal,
"This is a great partnership for both us and REXCAPITAL Financial Holdings
Limited (Rex Capital). Guard Libang has done a great job of procuring
Chinese instant ticket cooperative service contracts, and this combined
entity will seek to execute on these contracts as well as win new deals in
other provinces. The Chinese Lottery market is about $11 billion, virtually
all online, and we remain confident that instant tickets can meet or exceed
that in the coming years."
Victor Chan, director of Rex Capital said, "By creating this
partnership with Scientific Games, we have brought together one of the best
of worldwide lottery expertise in Scientific Games with Rex Capital's
knowledge of the China market, which make a strong combination to benefit
the CWL.
Added General Manager Xiangbo Wang of Guard Libang, "Scientific Games
is a global leader of the instant ticket business, and we look forward to
bringing their successful cooperative service model to the China Welfare
Lottery. They have done a great job of growing the US Instant Ticket
Market, as well as developing new markets such as Italy. This partnership
will sell Chinese instant tickets with the highest level of security and
integrity, and return more funds to the charities that the China Welfare
Lottery supports."
About Scientific Games
Scientific Games Corporation is the leading integrated supplier of
instant tickets, systems and services to lotteries worldwide, a leading
supplier of fixed odds betting terminals 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 http://www.scientificgames.com.
Company Contact:
Investor Relations
Scientific Games
212-754-2233
About REXCAPITAL
REXCAPITAL Financial Holdings Limited is a company listed on the Main
Board of the Hong Kong Stock Exchange (stock code: 555) is principally
engaged in the provision of lottery related system, machines and services
to the Chinese Lottery market. The Group is holding a controlling stake in
Guard Libang (supplier of scratch card lottery games and system for Welfare
Lottery in China), Kingsail (which is involved in the development and
deployment of lottery system for Sports Lottery in China) as well as
Sinodata (the leading supplier of online lottery systems to the China
Welfare Lottery with 15 provincial contracts). Apart from the above, our
Group also involves in the provision of financial services including
broking and securities margin financing, corporate finance and asset
management, money lending and investment trading and holding.
Forward-Looking Statements
In this press release we make "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," "continue," "believe," "expect,"
"anticipate," "could," "potential," "opportunity," or similar terminology.
These statements are based upon management's current expectations,
assumptions and estimates and are not guarantees of future results or
performance. Actual outcomes 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; retention and renewal of existing contracts; availability and
adequacy of cash flow to satisfy obligations and indebtedness or future
needs; 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; dependence on key personnel; failure to perform on contracts;
resolution of pending or future litigation; labor matters; and stock price
volatility. Additional information regarding risks and 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 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.
SOURCE Scientific Games
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Related links:
http://www.scientificgames.com/
http://www.prnewswire.com/comp/117695.html/
CONTACT:
Investor Relations of Scientific Games,
+1-212-754-2233
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