Scientific Games Announces its Consortium Selected for the Greek
State Lotteries' Concession
NEW YORK, Dec. 12, 2012 /PRNewswire/ -- Scientific Games
Corporation (Nasdaq: SGMS) today announced that the Hellenic
Republic Asset Development Fund declared the consortium in which
Scientific Games Global Gaming S.a.R.l, a subsidiary of Scientific
Games, is a participant, as the provisional successful bidder in
the tender process for a 12-year concession for the exclusive
rights to the production, operation, circulation, promotion and
management of the Hellenic Lotteries in Greece.
The consortium is principally comprised of OPAP S.A. (ATH:
OPAP), Scientific Games and Intralot (ATH: INLOT).
The concession will cover current and future instant
lotteries which are conducted using physical tickets, as well as
internet sales of physical tickets. Operations under the new
concession are subject to various regulatory approvals, including
Greek parliamentary approval.
Scientific Games will have a 16.5% equity interest in the
consortium and will be responsible for the instant ticket marketing
function, with a supply agreement providing for all instant ticket
production and game design services. The consortium will pay an
upfront payment of €190 million and will be responsible for a
monthly fee equal to a percentage of the gross gaming
revenues.
"Scientific Games is proud to be selected as part of the
consortium that will manage the Greek government's traditional
lotteries and re-launch the instant ticket product. We view
Greece as an important
jurisdiction and are confident that implementing the best practices
we have successfully used with other lotteries around the world
will result in significant incremental revenue for the Greek
government. With some of the world's leading lottery companies
working together in this initiative, our consortium is well
positioned to help the Greek government succeed in its objectives
of raising revenue for the Greek state while giving Greeks access
to world class lottery products," said A.
Lorne Weil, Chairman and Chief Executive Officer of
Scientific Games.
In 2011, OPAP generated €4.4 billion in total lottery retail
sales in Greece, representing
approximately €386 in per capita sales, making it the third largest
lottery in the world in terms of per capita sales based on data
provided by La Fleur's. The instant ticket lottery has been
inactive since 2003.
About Scientific Games
Scientific Games Corporation is
a global leader in providing customized, end-to-end gaming
solutions to lottery and gaming organizations worldwide. Scientific
Games' integrated array of products and services includes instant
lottery games, lottery gaming systems, terminals and services, and
internet applications, as well as server-based interactive gaming
terminals and associated gaming control systems. For more
information, please visit our website at
www.scientificgames.com.
Company Contact:
Cindi Buckwalter, Investor
Relations
(212) 754-2233
Forward-Looking Statements
In this press release the
Company 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,"
"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 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; material adverse changes in economic and industry
conditions; technological change; retention and renewal of existing
contracts and entry into new or revised contracts; availability and
adequacy of cash flows 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; inability to benefit from, and risks associated with,
strategic equity investments and relationships; failure of
Northstar to meet the net income targets or otherwise realize the
anticipated benefits under its private management agreement with
the Illinois Lottery; seasonality; inability to identify and
capitalize on trends and changes in the lottery and gaming
industries, including the potential expansion of regulated gaming
via the internet; inability to enhance and develop successful
gaming concepts; dependence on suppliers and manufacturers;
liability for product defects; fluctuations in foreign currency
exchange rates and other factors associated with international
operations; influence of certain stockholders; 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 the Company's filings with the Securities and
Exchange Commission, including under the heading "Risk Factors" in
our periodic reports. Forward-looking statements speak only as of
the date they are made and, except for the Company's ongoing
obligations under the U.S. federal securities laws, the Company
undertakes no obligation to publicly update any forward-looking
statements whether as a result of new information, future events or
otherwise.
SOURCE Scientific Games Corporation