Scientific Games Announces its Consortium Selected for the Greek State
NEW YORK, Dec. 12, 2012
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 futureinstant 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
"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
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.
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.
SOURCE Scientific Games Corporation
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