Scientific Games awarded New York Lottery instant ticket contract

NEW YORK -- (PRESS RELEASE) -- Scientific Games Corporation (Nasdaq: SGMS) today announced that the Company has entered into a contract to be the primary supplier of instant ticket games and related services including game design, development and marketing for the New York Lottery. The Company was awarded this seven-year contract following a competitive procurement process, as previously announced on May 10, 2011, and final New York State approval was obtained on August 15, 2011. Revenue to Scientific Games will continue to be earned on a price-per-thousand tickets basis; however, in the new contract, the Company will also receive a percentage of net sales less prizes for instant ticket game management and marketing, and will be entitled to earn incentive awards based on the lottery achieving benchmark levels of performance.

"The final selection of Scientific Games as our primary printer was the result of a detailed evaluation process and a thorough analysis of the Company's capabilities," said Gordon Medenica, Director of the New York Lottery. "We believe this new incentive-based contract structure is a win-win for New York's school children as well as Scientific Games, a New York-based company."

"We are excited to once again be chosen as the primary vendor by the New York Lottery, the largest of any jurisdiction in the U.S. and the third highest on a per capita basis," commented Jim Trask, President of the Printed Products Group for Scientific Games. "This new arrangement will enable us to fully utilize our innovative content and marketing to drive sales for the Lottery and help them grow profits for Education."

In fiscal year 2010, the New York Lottery generated $6.8 billion in sales from traditional Lottery games, including $3.5 billion from its instant ticket business. During that same time period, The Lottery's traditional business brought in $2.1 billion in profit for education.

About the New York Lottery
The New York Lottery continues to be North America's largest and most profitable Lottery, contributing over $3 billion in fiscal year 2010-2011 to help support education in New York State. The Lottery's aid represents over 15 percent of total state education funding to local school districts.
Lottery revenue is distributed to local school districts by the same statutory formula used to distribute other state aid to education. It takes into account both a school district's size and its income level; larger, lower-income school districts receive proportionately larger shares of Lottery school funding.

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 include 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.