Scientific Games to Support Pennsylvania's PMA Process
NEW YORK, June 12, 2012 /PRNewswire/ -- Scientific Games Corporation (Nasdaq: SGMS) announced today that it has agreed to assist the Commonwealth of Pennsylvania ("the Commonwealth") in its potential procurement of a private management agreement ("PMA") for the management of the Pennsylvania Lottery ("the Lottery"). Scientific Games has been the Lottery's exclusive supplier of instant ticket games and lottery systems and other services since 1997 and 1977, respectively. In support of the potential procurement for the PMA, Scientific Games will assist the Commonwealth in the due diligence phase of exploration. Should the Commonwealth execute a PMA, Scientific Games will continue in its current role as the exclusive supplier for the remainder of the existing agreements, including all contract extension options, ending in August 2017 and December 2018, respectively. Due to its role in this process, Scientific Games has not responded to the April 2, 2012 Request for Qualifications and will not bid on a private management agreement for the Lottery.
"Scientific Games is a valuable partner in our Lottery operations, and their industry expertise has helped the Pennsylvania Lottery establish itself as an industry leader," said Pennsylvania Lottery Executive Director Todd Rucci. "We're fortunate to be able to benefit from their industry insight and assistance in analyzing and optimizing a private management agreement that will preserve and expand upon the Lottery's security, integrity and success."
"We are extremely supportive of the Commonwealth's innovative approach toward exploration of a private management agreement," stated Lorne Weil, Chairman and Chief Executive Officer of Scientific Games. "Having been a trusted partner of the Commonwealth for a long time, we look forward to helping Pennsylvania achieve its long-term growth goals for the Lottery."
In fiscal year 2011, the Pennsylvania Lottery had sales of more than $3.2 billion; contributions to programs for older Pennsylvanians totaled more than $960 million.
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 machines and associated gaming control systems. For more information, please visit our website at www.scientificgames.com.
Cindi Buckwalter, Investor Relations
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.
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