Scientific Games Awarded Texas Lottery Contract
NEW YORK – (PRESS RELEASE) -- SCIENTIFIC GAMES CORPORATION (Nasdaq: SGMS) said the Texas Lottery has announced that Scientific Games is the successful proposer for its primary instant lottery ticket manufacturing and services, a contract estimated at $30 million over the initial term. The initial term of the contract is three years with five one-year options to renew. The agreement is subject to the negotiation of a final contract. The Lottery also announced that Pollard Banknote Ltd. will be the backup supplier, printing a minimum of one game per year and providing backup in the event the primary supplier cannot perform.
Instant ticket sales in Texas are on track to reach $2.234 billion in sales for the fiscal year ended August 31, 2004. Scientific Games has been the Texas Lottery's primary supplier since 1999 -- when sales of instant tickets were $1.4 billion.
Lorne Weil, Chairman and CEO of Scientific Games, said, "We are gratified to have retained the Texas Lottery as one of our most important customers, and to know that our efforts to help the Lottery achieve it's growth objectives have been appreciated. We look forward to continuing to support the Lottery to maximize revenues and distributions to the Foundation School Fund, which helps pay for Public Education in Texas."