Scientific Games Reports New Pari-Mutuel Agreements

NEW YORK – (PRESS RELEASE) -- Scientific Games Corporation (Nasdaq: SGMS) announced three pari-mutuel agreements in various parts of the world. Together the agreements are estimated to be worth $6.2 million.

In an agreement that is the first of its kind anywhere, Scientific Games Worldwide Limited (SGW), a wholly owned subsidiary of Scientific Games Corporation, and The Racing Network International (TRNI) have agreed to use SGWs worldwide tote hub in Ireland to commingle wagers from the UK, Ireland and mainland Europe back to US host racetrack wagering pools that are TRNI customers.

Over the last couple of years TRNI has established US racing as a commingled product in the UK and Ireland, markets that are predominantly served by bookmaking systems with fixed odds. TRNI provides the software and information systems that interface between the fixed odds bookmaking systems and the tote interface enabling all bets to be commingled.

The agreement with SGW will enable the TRNI system to commingle the international racing product on the At The Races channel with the pools of the respective US host racetracks. It also opens up the distribution of US racing into mainland Europe through a joint venture between At The Races and TRNI.

With the second agreement, the Horserace Totalisator Board of the UK is purchasing 800 of Scientific Games new EXTREMA® C-X Mini terminal for use at 59 UK racetracks. The new state of the art EXTREMA C-X is a full-featured wagering terminal that is half the weight and much smaller than prior models. The new terminals are scheduled for installation in early summer 2005.

In addition, SGW completed an agreement with Dansk Tipstjeneste A/S, the Danish racing organization for the sale of a new central totalisator system, software and support services, and 450 terminals. The terminals will include Scientific Games' popular MAX 3000® terminals and handheld wagering units for use at nine racetracks and over 200 off-track betting locations across Denmark. The launch of the new tote system is planned for late 2005.

Lorne Weil, chairman and CEO of Scientific Games, said, "Each of these new deals is significant in its own right. Our relationship with TRNI will open a new distribution avenue for our customers in both the US and in Europe. Bettors in Europe, a primarily fixed odds environment, will now be able to wager directly into US pools and participate on exotic and jackpot wagers for the first time. This really is the beginning of the vision that we have been talking about for some time where pari-mutuel wagering worldwide will be expanding between countries on different continents."

"The sale to the UK Horseracing Totalisator Board builds on our existing relationship with this customer. They have affirmed that Scientific Games is the preeminent wagering terminal designer and manufacturer and the new Extrema C-X, with its small weight and footprint, is ideal in the European market of racetracks that continually move their equipment and for smaller locations like cafes, tobacco shops, and pubs."

Mr. Weil continued, "Finally, the breadth of Scientific Games reach is exemplified by the sale of a system and terminals to Dansk Tipjeneste, a long time customer of Scientific Games' printed products business. As the lines continue to blur between racing and lottery customers, Scientific Games is uniquely positioned to capitalize on these opportunities."