Contract worth an estimated $3.5 million over initial term
NEW YORK, April 4 /PRNewswire-FirstCall/ -- SCIENTIFIC GAMES CORPORATION
(Nasdaq: SGMS) announced that it was chosen as the vendor to provide a new
monitor game to the Massachusetts State Lottery Commission (MSLC). The award
is worth an estimated $3.5 million over the initial term of three years and
includes two one-year extension options.
The new monitor game, The Daily Race Game(TM)/Run for the Money, extends
the use of state lottery keno networks, which in many cases, usually run only
one game. In the US, keno is authorized in thirteen jurisdictions, generates
retail sales of approximately $2.4 billion according to LaFleur's Magazine.
Most often, keno players in age-controlled locations like restaurants and
social establishments choose a series of numbers and then wait for a "draw"
every four or five minutes to see if they won.
Run For The Money is a broadcast quality, animated horse race game
designed to complement keno in the social environment. It provides
entertaining winner delivery animation with simple betting and prize
structures. Run For The Money features twelve horses in each race with every
horse having a chance to win as they sprint out of the turn for the wire.
Scientific Games has teamed with TeleCom Game Factory, the original developers
of the game, to deliver this exciting product to the MSLC.
"This is an important step forward in leveraging the existing online
lottery networks worldwide to generate increased online lottery revenues,"
said Lorne Weil, chairman and CEO of Scientific Games Corporation. "Over the
last few years, we have been making a significant investment in new game and
content development. This award is an important validation of the strategy to
provide the widest possible range of new and exciting lottery-based
entertainment products and services to our lottery customers."
"The testing we have done in Massachusetts indicates that Run For The
Money will be a welcome addition to the monitor game market and we are looking
forward to working with the MSLC to ensure a successful launch," Mr. Weil
concluded.
Joseph Sullivan, Executive Director of the MSLC, added, "For more than
thirty years, Scientific Games has been an important partner to the
Massachusetts Lottery, helping to create an enormously successful instant
ticket business. Now our relationship has evolved into a new and exciting
area. We believe that Run For The Money could be a significant addition to our
product offerings and we are enthusiastic about its prospects."
In calendar 2004, the Massachusetts Lottery reported $4.5 billion in
lottery revenues of which approximately $757 million was from keno sales.
About Scientific Games
Scientific Games Corporation is the leading integrated supplier of instant
tickets, systems and services to lotteries, and the leading supplier of
wagering systems and services to pari-mutuel operators. It is also a licensed
pari-mutuel gaming operator in Connecticut 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.
Forward-Looking Statements
In this press release we make "forward-looking statements" within the
meaning of the United States Private Securities Litigation Reform Act of 1995.
In some cases, forward-looking statements can be identified by the use of
forward-looking terminology such as "may," "will," "estimate," "intend,"
"continue," "believe," "expect" or "anticipate," or the negatives thereof,
variations thereon or similar terminology.
These forward-looking statements generally relate to plans and objectives
for future operations and are based upon management's reasonable estimates of
future results or trends. Although we believe that the plans and objectives
reflected in or suggested by such forward-looking statements are reasonable,
such plans or objectives may not be achieved.
Actual results may differ from projected results due, but not limited, to
unforeseen developments, including developments relating to the following:
* economic, competitive, demographic, business and other conditions in our
local and regional markets;
* changes or developments in the laws, regulations or taxes in the gaming
and lottery industries;
* actions taken or omitted to be taken by third parties, including
customers, suppliers, competitors, members and shareholders, as well as
legislative, regulatory, judicial and other governmental authorities;
* changes in business strategy, capital improvements, development plans,
including those due to environmental remediation concerns, or changes in
personnel or their compensation, including federal, state and local
minimum wage requirements;
* the availability and adequacy of our cash flow to satisfy our
obligations, including our debt service obligations and our need for
additional funds required to support capital improvements, development
and acquisitions;
* an inability to renew or early termination of our contracts;
* an inability to engage in future acquisitions;
* the loss of any license or permit, including the failure to obtain an
unconditional renewal of a required gaming license on a timely basis;
and
* resolution of any pending or future litigation in a manner adverse
to us.
Actual future results may be materially different from what we expect. We
will not update forward-looking statements even though our situation may
change in the future.
Company Contact: Lisa D. Lettieri
Scientific Games Corporation
212-754-2233
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