Scientific Games to Supply Pennsylvania Instant Game Services

HARRISBURG, Pennsylvania – (PRESS RELEASE) -- Pennsylvania Secretary of Revenue Gregory C. Fajt today announced that he has selected Scientific Games International to supply instant game services to the Pennsylvania Lottery.

Scientific Games, based in Alpharetta, Ga., was chosen following an open and competitive procurement process. Fajt said a committee comprised of employees from the Lottery and other state agencies began evaluating vendor proposals last July. The committee determined that Scientific Games' proposal offered the best combination of experience in the Lottery industry, innovation, minority participation, technical expertise and cost.

"Scientific Games is an industry leader in instant game products and services," Fajt said. "The state-of-the-art services the company will provide under this contract will help the Pennsylvania Lottery continue its recent growth."

Fajt said the department will immediately begin negotiations with Scientific Games on a five-year contract, with up to five, one-year extensions. The terms of the contract will not be determined until it is finalized, but Fajt said the cost will be significantly less than under the commonwealth's existing contract with Scientific Games for instant game services. Fajt said Scientific Games will be paid a percentage of the Lottery's instant game sales. The contract will go into effect on April 10, 2007.

Scientific Games is in the final year of 10-year instant-game contract. The company was paid approximately $35 million under the existing contract for Fiscal Year 2005-06.

Services provided by Scientific Games under the new contract will include:

-- Printing tickets and distributing them to retailers.

-- Destroying returned tickets.

-- Telemarketing to retailers.

-- Assisting with game design.

-- Inventory control and inventory status projections.