Scientific Games Wins Two Major Contract Awards From World's Top-Ranked Pennsylvania Lottery

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10/04/2021 - 04:00 PM

LAS VEGAS and ATLANTA, Oct. 4, 2021 /PRNewswire/ -- Scientific Games Corporation (NASDAQ: SGMS) ("Scientific Games" or the "Company") announced it won a 10-year base contract from the Pennsylvania Lottery (or the "Lottery") to provide its world-leading instant games and Scientific Games Enhanced Partnership for lottery instant game services, as well as a 10-year base contract to provide lottery gaming systems services across the network of nearly 10,000 Pennsylvania Lottery retailers in the Commonwealth. Supplying the Pennsylvania Lottery since its inception nearly 50 years ago, Scientific Games has a proven record, partnering with the Lottery to responsibly drive record proceeds, including 10 consecutive years of $1 billion+ profits for programs benefitting older Pennsylvanians.

Drew Svitko, Executive Director of the Pennsylvania Lottery said, "After careful evaluation of several proposals, Scientific Games was chosen to help us modernize our business so that we will be able to have a continuing impact on the programs that Pennsylvania seniors rely on every day. Things like free meals, transportation, care services, tax relief and prescription assistance are needed now more than ever. Our partnership will only strengthen Lottery's mission and we look forward to the future."

Following a competitive procurement process, the Company was awarded both contracts based on its proposed innovative, high-performing Pennsylvania Lottery Scratch-Off games, advanced supply chain logistics, retailer equipment solutions, enterprise applications, analytics services and sales performance tools for the Lottery and its retailers. The offerings include best-in-class game portfolio and operational services, as well as continued investment in retail modernization. Each of the two contracts may be renewed by the Lottery for up to four years.

Pat McHugh, Lottery Group Chief Executive for Scientific Games, said, "Scientific Games is honored to continue our valued partnership with the Pennsylvania Lottery in their mission to maximize funding of the Commonwealth's senior programs. The Lottery is a shining example of success. Drew Svitko and his team's vision for collaborating on great games and modernizing retail and digtial lottery sales has resulted in the Pennsylvania Lottery's record-breaking proceeds to benefit seniors, ranking among the highest performing lotteries in the world."

Under Scientific Games' current contracts, from fiscal year 2009-10 to fiscal year 2020-21, the Pennsylvania Lottery performed significantly beyond industry averages with total retail sales growing over 73% for a more than $2.2 billion annual increase. In May 2018, as part of the Lottery's strategic expansion of game entertainment, Scientific Games launched Pennsylvania's online/mobile games. The Pennsylvania iLottery program, which the Company manages, has been recognized as one of the most commercially successful iLottery launches and is the first in the U.S. to reach $1 billion in sales in less than two years.

McHugh added, "Scientific Games' investment in retail and digital games, technology and services in collaboration the Pennsylvania Lottery has helped shape the player experience for the lottery industry."

With total retail sales of more than $4.9 billion in fiscal year 2020, the Pennsylvania Lottery ranks among the top-performing lotteries globally: No. 5 for instant game sales per capita and No. 9 for total sales per capita (La Fleur's 2021 Almanac).

The Company also launched the first Payment Card Industry-approved cashless lottery program in the U.S. for the Pennsylvania Lottery, and developed customized technology for lottery self-service machines at retail.

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 is the world's largest supplier of lottery instant games with products representing more than 70% of retail sales globally.

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.

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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 March 1, 2021 (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.