Scientific Games Signs Agreement for Italian Instant Lottery
NEW YORK – (Press Release) -- Scientific Games Corporation (Nasdaq: SGMS) today announced that a consortium consisting of Scientific Games, Lottomatica S.p.A, and Arianna 2001, a company owned by the Federation of Italian Tobacconists (FIT), has signed a contract with the Italian Monopoli di Stato to be the exclusive operator of the Italian Gratta e Vinci instant lottery. The agreement is for an initial period of 6 years with a six-year extension option.
Scientific Games will provide and support the central system and associated hardware and software, will be the exclusive supplier of instant tickets, will participate in the profits of the lottery operation as an equity partner, and will partner with Lottomatica in the overall management of the lottery. The contract was initially awarded in 2001 but has been delayed by a series of protests by competing bidders.
Lorne Weil, Chairman and CEO of Scientific Games said, "With a national population of more than 55 million people, an initial terminal and retailer base of at least 35,000, and one of the three highest on-line lotto sales per capita in the world, the Italian Gratta e Vinci has the potential to be one of the largest, if not the largest, instant ticket lotteries in the world.
"Based on the per capita sales in other jurisdictions we would expect to achieve instant ticket sales to the consortium of at least $100 million over the initial six-year term of the contract, in addition to the revenues generated from the sale of the central system, related software and hardware, maintenance revenues and our share of the consortium's profits."
Scientific Games Corporation is the leading integrated supplier of instant tickets, systems and services to lotteries, and the leading supplier of wagering systems and services to pari-mutuel operators. It is also a licensed pari-mutuel gaming operator in Connecticut and the Netherlands and is a leading supplier of prepaid phone cards to telephone companies. Scientific Games' customers are in the United States and more than 60 other countries.
