NEW YORK, April 15, 2013 /PRNewswire/ -- Scientific
Games Corporation (Nasdaq: SGMS) today announced that the New
Jersey Treasury Department has issued a notice of intent to award a
contract to the Northstar New Jersey Lottery Group ("Northstar NJ")
to provide marketing and sales services to the New Jersey Lottery.
Northstar NJ is a joint venture comprised of Scientific Games
International, Inc., GTECH Corporation, a subsidiary of Lottomatica
Group S.p.A. (LTO.MI), and OSI LTT NJ Holdings Inc., an indirect
subsidiary of OMERS Administration Corporation, the administrator
of the Ontario Municipal Employees Retirement System pension funds
(OMERS). A subsidiary of Scientific Games will own approximately
18% of the Northstar NJ joint venture. An entity comprised of GTECH
and OSI will own approximately 82% of the Northstar NJ joint
venture.
Northstar NJ will provide a wide range of specialized services
to the Lottery that will focus on strengthening its marketing and
sales functions and will include support for lottery game
development, the procurement of related goods and services and
marketing and advertising. All of these activities will be subject
to control and oversight by the Lottery. The services agreement is
expected to commence after a transition period and is expected to
end on June 30, 2029.
Under the terms of the contract, Northstar NJ will be entitled
to receive incentive payments to the extent the Lottery's net
income exceeds specified target levels, subject to a cap of 5% of
the applicable year's net income. Northstar NJ will be
responsible for payments to the State to the extent the Lottery net
income levels set forth in Northstar NJ's successful bid are not
achieved, subject to a cap of 2% of the applicable year's net
income and a $20 million shortfall
payment credit. Northstar NJ will also be required to make a
$120 million payment to the State
upon execution of the agreement.
Scientific Games and GTECH will provide Northstar NJ with
instant lottery games, lottery systems and services along with a
player loyalty and rewards program. Under the terms of a
separate joint venture arrangement between Scientific Games and
GTECH and supply arrangements with Northstar NJ, Scientific Games
will have a 30 percent economic interest (and be responsible for 30
percent of the capital requirements) associated with such supply
arrangements.
"We look forward to proving how meaningful a commercial lottery
business model can be to the State of New
Jersey and its residents," stated A.
Lorne Weil, Chairman and Chief Executive Officer of
Scientific Games. "We have been a long-time partner of the New
Jersey Lottery, including launching the industry's first
internet-based second chance drawing in 2001 for the New Jersey
Lottery. We are proud to continue to be a part of the Lottery's
progressive efforts in establishing itself as an industry leader in
terms of both performance and innovation."
About Scientific Games
Scientific Games Corporation
is a global leader in providing customized, end-to-end gaming
solutions to lottery and gaming organizations worldwide. Scientific
Games' integrated array of products and services includes instant
lottery games, lottery gaming systems, terminals and services, and
internet applications, as well as server-based interactive gaming
terminals and associated gaming control systems. For more
information, please visit our website at
www.scientificgames.com.
Company Contact:
Cindi Buckwalter, Investor
Relations
(212) 754-2233
Forward-Looking Statements
In this press release, the
Company makes "forward-looking statements" within the meaning of
the U.S. Private Securities Litigation Reform Act of 1995.
Forward-looking statements describe future expectations, plans,
results or strategies and can often be identified by the use of
terminology such as "may," "will," "estimate," "intend,"
"continue," "believe," "expect," "anticipate," "should," "could,"
"potential," "opportunity," or similar terminology. These
statements are based upon management's current expectations,
assumptions and estimates and are not guarantees of future results
or performance. Actual results may differ materially from
those contemplated in these statements due to a variety of risks
and uncertainties and other factors, including, among other
things: competition; material adverse changes in economic and
industry conditions; technological change; retention and renewal of
existing contracts and entry into new or revised contracts;
availability and adequacy of cash flows to satisfy obligations and
indebtedness or future needs; protection of intellectual property;
security and integrity of software and systems; laws and government
regulation, including those relating to gaming licenses, permits
and operations; inability to identify, complete and integrate
future acquisitions; inability to benefit from, and risks
associated with, strategic equity investments and relationships;
failure of our Northstar Illinois joint venture to meet the net
income targets or otherwise realize the anticipated benefits under
its private management agreement with the Illinois Lottery; failure
of our Northstar NJ joint venture to enter into an agreement to
provide marketing and sales services to the New Jersey Lottery
(including as a result of a protest) or to meet the net income
targets or other requirements under any such agreement or otherwise
realize the anticipated benefits under any such agreement; the
seasonality of our business; inability to obtain the approvals
required to complete the merger with WMS Industries Inc. ("WMS");
failure to complete the merger with WMS or, if completed, failure
to achieve the intended benefits of such merger or disruption of
our current plans and operations; inability to identify and
capitalize on trends and changes in the lottery and gaming
industries, including the potential expansion of regulated gaming
via the internet; inability to enhance and develop successful
gaming concepts; dependence on suppliers and manufacturers;
liability for product defects; fluctuations in foreign currency
exchange rates and other factors associated with international
operations; influence of certain stockholders; dependence on key
personnel; failure to perform under our contracts; resolution of
pending or future litigation; labor matters and stock price
volatility. Additional information regarding risks and
uncertainties and other factors that could cause actual results to
differ materially from those contemplated in forward-looking
statements is included from time to time in the Company's filings
with the Securities and Exchange Commission, including under the
heading "Risk Factors" in the Company's periodic reports.
Forward-looking statements speak only as of the date they are made
and, except for the Company's ongoing obligations under the U.S.
federal securities laws, the Company undertakes no obligation to
publicly update any forward-looking statements whether as a result
of new information, future events or otherwise.
SOURCE Scientific Games Corporation