Revenue Estimated at $41.7 Million Over Five Years
NEW YORK, Aug. 14 /PRNewswire-FirstCall/ -- Scientific Games (Nasdaq:
SGMS) was awarded the contract to provide pari-mutuel wagering equipment
and services for the California Horse Racing Industry (CHRI), the company
announced today. The contract, awarded through a competitive procurement
process, will run for five years in the initial term with one possible
three-year extension and two possible one-year extensions and is expected
to generate approximately $41.7 million in revenue over the initial term.
The CHRI oversees 16 racetrack associations throughout the state, including
all thoroughbred racing venues, the state's harness tracks and racing fairs
and an extensive network of off-track wagering facilities.
Scientific Games will operate the California system from the West Coast
Quantum(TM) Data Center (QDC), located in Sacramento, with hot stand-by for
redundancy and disaster recovery provided from the Quantum Data Center East
in New Jersey. The QDC are the first of their kind in the racing industry,
offering enterprise-level computing, standards and best practices in
facilities designed to support pari-mutuel wagering. All of the California
operations will be migrated to the QDC by the fourth quarter of 2007.
Scientific Games will also install 3,865 new BetJet(TM) terminals as well
as hand-held wireless wagering devices. Scientific Games' latest generation
series of devices provides a full array of wagering services at the point
of sale, including handicapping tools and banking network integration,
along with the industry's most intuitive user interface.
"California is one of our most important racing customers, and we are
thrilled that they have awarded us this new contract," said Lorne Weil,
Chairman and CEO of Scientific Games. "We believe the upgrade to our
Quantum Data Centers along with our new BetJet terminals will improve the
patron experience at every California track and help to grow handle in this
extremely competitive gaming marketplace."
"We were seeking a technical partner with a demonstrated record of
innovation and flexibility as well as the technical and financial resources
to provide the services the CHRI requires, and we found that partner in
Scientific Games" said Craig Fravel, Executive Vice President of the Del
Mar Thoroughbred Club. "We expect that over the coming years SG will help
us introduce new products and services, as well as maintain a reliable and
robust system, to support and encourage pari-mutuel wagering on what we
believe is the best horse racing in the world."
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
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 and entry into new
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; inability to identify, complete and integrate future
acquisitions; 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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http://www.scientificgames.com/
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CONTACT:
Investor Relations, Scientific Games,
+1-212-754-2233
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