Scientific Games' New, Expanded Contract Enters Five Decades Of Supplying No. 1 Massachusetts Lottery With Instant Games

Rhea-AI Summary

Scientific Games Corporation (NASDAQ: SGMS) has secured a five-year contract from the Massachusetts State Lottery Commission, extending its long-standing partnership. The deal focuses on supplying instant games, second chance promotions, and digital engagement initiatives. In FY 2020, Scientific Games generated $3 billion out of the Mass Lottery's $3.6 billion in total instant game retail sales. This year, they have facilitated an 11.3% growth in instant game sales, amounting to $99.7 million. The partnership underscores the Lottery's position as the top instant game lottery worldwide.

Positive

• Secured a five-year contract with the Massachusetts State Lottery, extendable by two years.
• Generated $3 billion in sales for the Mass Lottery in FY 2020, accounting for 96% of instant game sales.
• Increased instant game sales by 11.3%, adding $99.7 million in FY 2021.

Negative

• None.

LAS VEGAS and ATLANTA, Nov. 16, 2020 /PRNewswire/ -- Scientific Games Corporation (NASDAQ: SGMS) ("Scientific Games" or the "Company") announces it has been awarded a new, five-year contract from the Massachusetts State Lottery Commission (MSLC) to supply the Massachusetts Lottery ("Mass Lottery" or the "Lottery") with its world-leading instant games, second chance promotions and digital engagement programs. Scientific Games' new contract, which may be extended up to two years by MSLC, is expanded to include consumer digital services that will engage players through exciting second chance game features and help the Lottery protect and grow revenues for the Commonwealth.

U.S.-based Scientific Games currently creates and produces 96% of the Mass Lottery's instant games. In fiscal year 2020, the Company's products generated $3 billion of the Mass Lottery's $3.6 billion in total instant game retail sales. In fiscal year 2021 which began July 1, 2020, Scientific Games has helped the Mass Lottery grow instant game sales by 11.3% or $99.7 million.

"The combined expertise of the Mass Lottery team and the teams at Scientific Games has resulted in great instant game entertainment that has generated strong revenues to benefit programs in the Commonwealth," said Ed Farley, Chief Marketing Officer for MSLC.  "We look forward to continuing this partnership and working to expand player digital engagement."

The Company produced the Mass Lottery's very first instant game in 1974 and its products and expertise helped grow the Mass Lottery to the No. 1 instant game lottery in the world (La Fleur's Almanac, 2019 per capita sales). One of the Lottery's franchise games, 50-100-500 Blowout created by Scientific Games, generated record retail sales in the Commonwealth, its success spurring other lottery jurisdictions to offer the game to players.

With more and more players moving to digital game entertainment, Scientific Games will work with the Mass Lottery on additional second-chance promotions, like the JAMES BOND™ LOTTERY CHALLENGE, played through desktop and mobile applications as well as important digital engagement initiatives that meet players where they are.

"It goes without saying that the Mass Lottery has been the highest performing instant game lottery in the world for many years and continues to set the bar for lotteries around the globe. We are extremely proud of the results of this trusted business partnership over the past four decades," said John Schulz, Senior VP, Lottery Instant Products for Scientific Games. "Our 2^nd chance and digital services are second to none, and we look forward to further expanding Scientific Games' services to player engagement in online/mobile channels in Massachusetts."

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. 

All ® notices signify marks registered in the United States.  © 2020 Scientific Games Corporation. All Rights Reserved.

About Scientific Games 
Scientific Games Corporation (NASDAQ: SGMS) is a world leader in entertainment offering dynamic games, systems and services for casino, lottery, social gaming, online gaming and sports betting. Scientific Games offers the gaming industry's broadest and most integrated portfolio of game content, advanced systems, cutting-edge platforms and professional services. Committed to responsible gaming, Scientific Games delivers what customers and players value most: trusted security, engaging entertainment content, operating efficiencies and innovative technology. For more information, please visit scientificgames.com. 

Media Inquiries: 
Media@scientificgames.com  

Forward-Looking Statements 
In this press release, Scientific Games makes "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as "will," "may," and "should." These statements are based upon management's current expectations, assumptions and estimates and are not guarantees of timing, future results or performance. Therefore, you should not rely on any of these forward-looking statements as predictions of future events. Actual results may differ materially from those contemplated in these statements due to a variety of risks, uncertainties and other factors, including those factors described in our filings with the Securities and Exchange Commission (the "SEC"), including Scientific Games' current reports on Form 8-K, quarterly reports on Form 10-Q and its latest annual report on Form 10-K filed with the SEC on February 18, 2020 (including under the headings "Forward-Looking Statements" and "Risk Factors"). Forward-looking statements speak only as of the date they are made and, except for Scientific Games' ongoing obligations under the U.S. federal securities laws, Scientific Games undertakes no obligation to publicly update any forward-looking statements whether as a result of new information, future events or otherwise.  

 

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SOURCE Scientific Games Corporation

FAQ

What is the new contract announced by Scientific Games (SGMS) on November 16, 2020?

Scientific Games announced a five-year contract with the Massachusetts State Lottery to supply instant games and digital services.

How much revenue did Scientific Games generate for the Massachusetts Lottery in FY 2020?

Scientific Games generated $3 billion, which constituted 96% of the Massachusetts Lottery's total instant game sales.

What percentage increase in instant game sales did Scientific Games facilitate for the Massachusetts Lottery in FY 2021?

Scientific Games facilitated an 11.3% increase, adding $99.7 million in instant game sales for FY 2021.

How long has Scientific Games been supplying the Massachusetts Lottery?

Scientific Games has been supplying the Massachusetts Lottery since 1974, marking nearly five decades of partnership.

What products will Scientific Games provide under the new contract with the Mass Lottery?

Under the new contract, Scientific Games will provide instant games, second chance promotions, and digital engagement programs.