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Scientific Games maximizing profits for Penn. Lottery with new seven year contract

18 Dec 2019

(PRESS RELEASE) -- Scientific Games Corporation announced that the Pennsylvania Lottery has awarded the Company a new contract for iLottery online/mobile games following a highly competitive procurement process. Scientific Games launched the Lottery's iLottery program in May 2018, and through the new contract will continue providing iLottery technology, online/mobile games and services for seven years with three additional one-year renewal options.

The Pennsylvania Lottery's iLottery program is the most commercially successful iLottery online/mobile launch in North America to date. Total sales for the Lottery's digital games topped $342 million as of May 2019, the one-year anniversary of the program. That mark significantly surpassed any previous iLottery launch in the industry's history, and hit $642 million in December 2019. The best-selling online/mobile games in Pennsylvania are Monster Wins, Foxin' Wins and Volcano Eruption, with the Grumpy Cat game debuting in April 2019 and quickly gaining popularity.

Pennsylvania Lottery Executive Director Drew Svitko said, "Our iLottery games have proven a fun, new way to play the Pennsylvania Lottery. Selling lottery online is a big part of our effort to modernize the lottery, appeal to new customers and meet our players where they already are, which is online, while generating new funds to benefit older Pennsylvanians. Sales of these new digital products as well as sales for our instant and draw-based games at Pennsylvania Lottery retailers grew beyond all expectations over the last year."

Svitko said that the Lottery has experienced another record-breaking year. With $4.5 billion in total retail sales led by $3 billion instant scratch game sales, fiscal year 2018-19 was its eighth consecutive year of more than $1 billion in transfers to benefit older Pennsylvanians.

"We thank the Pennsylvania Lottery for its trust in our iLottery technology, games and expertise to drive the most profits for programs benefiting older Pennsylvanians. Beyond the tremendous growth of instant and draw games, our iLottery partnership has generated significant incremental revenue. Scientific Games will continue to invest in innovation that keeps the Lottery relevant to consumers, and ultimately maximizes its returns to the Commonwealth of Pennsylvania," said Pat McHugh, Chief Executive Lottery for Scientific Games.

The Company's new iLottery contract includes implementation, operation, maintenance and support of the iLottery solution and services, iLottery and web application, and web-based presence. Scientific Games also provides responsible gaming controls, a powerful Customer Relationship Management (CRM) suite and resources to enhance player engagement, and an innovative affiliate program that benefits Pennsylvania Lottery retailers. As part of the affiliate program, the Pennsylvania Lottery's more than 9,800 retailers are incentivized for every player they register for the iLottery program.

Scientific Games is also the current provider of the Pennsylvania Lottery's instant games as well as systems and retail technology. In 2018, the Pennsylvania Lottery ranked among the top 10 performing lotteries in the U.S. and the top 20 in the world (La Fleur's Almanac).

Scientific Games launched the world's first secure retail instant game in 1974, the first digital instant game in the U.S. in 2014, and is the leading provider of lottery interactive games, mobile apps, player loyalty programs and other interactive products and services in the U.S. lottery industry. The Company provides games, technology and services to more than 150 lotteries around the globe, including nearly every North American lottery.
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