Scientific Games Announces its Consortium Signs the Greek State Lotteries'
NEW YORK, July 30, 2013
NEW YORK, July 30, 2013 /PRNewswire/ -- Scientific Games Corporation (Nasdaq:
SGMS) today announced that the Hellenic Republic Asset Development Fund has
signed a 12-year concession agreement with the consortium in which Scientific
Games Global Gaming S.a.R.l, a subsidiary of Scientific Games, is a
participant, for the exclusive rights to the production, operation,
circulation, promotion and management of the Greek State Lotteries.
The consortium, incorporated as Hellenic Lotteries S.A., is principally
comprised of Scientific Games, and subsidiaries of OPAP S.A. (ATH: OPAP) and
Intralot S.A. (ATH: INLOT).
The concession will cover current and future instant and passive ticket
lotteries which are conducted using physical tickets that will be sold through
traditional retail outlets, street vendors and through the internet.
Operations under the new concession are subject to various regulatory
approvals, including Greek parliamentary approval.
Scientific Games has a 16.5% equity interest in the consortium and will have
exclusive responsibility for instant ticket design and production. Scientific
Games will also be responsible for advisory services applicable to all lottery
tickets included in the concession. The consortium will pay an upfront payment
of €190 million and will be responsible for a monthly fee equal to a
percentage of gross gaming revenues.
"We are excited to have a signed concession agreement and to being one step
closer to re-launching the instant ticket product in Greece. This consortium
provides significant resources in terms of capital, talent and entertaining
products to help generate significant incremental revenue for the Greek
government and brings world class lottery products to the people of Greece,"
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," "should," "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 our Northstar Illinois joint venture to meet the net
income targets or otherwise to realize the anticipated benefits under its
private management agreement with the Illinois Lottery; failure of our
Northstar New Jersey joint venture to meet the net income targets or other
requirements under its agreement to provide marketing and sales services to
the New Jersey Lottery or otherwise to realize the anticipated benefits under
such agreement (including as a result of a protest); the seasonality of our
business; failure to receive the required approvals related to the award to
our consortium of an instant ticket concession in Greece on a timely basis or
at all, or otherwise to realize the anticipated benefits in connection with
such concession; failure to complete the pending acquisition of WMS Industries
Inc. ("WMS") on a timely basis or at all, including due to the inability to
obtain the gaming regulatory approvals required to complete the acquisition;
disruption of our current plans and operations in connection with the WMS
acquisition; failure to achieve the intended benefits of the WMS acquisition,
including due to the inability to realize synergies in the anticipated amounts
or within the contemplated time-frames or cost expectations, or at all;
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 under our 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 ("SEC"), including under
the heading "Risk Factors" in the Company's Annual Report on Form 10-K filed
with the SEC on March 12, 2013 and in its subsequent 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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