NEW YORK, January 24, 2012 /PRNewswire/ --
Scientific Games Corporation (Nasdaq: SGMS) and Playtech Limited
(AIM: PTEC) today announced that they have entered into an
agreement to restructure their strategic relationship relating to
internet gaming products and services. Under the agreement,
Playtech will license its leading online gaming software to
Scientific Games on a mutually non-exclusive basis for use by
certain categories of Scientific Games' current and prospective
customers, including U.S. casinos and lotteries
worldwide.
This restructured arrangement seeks to replicate the successful
strategic relationship that Scientific Games' Global Draw
subsidiary and Playtech have in place for use of Playtech's
Videobet technology for server-based gaming machines. Scientific
Games and Playtech expect to continue their close working
relationship going forward, focusing on opportunities where
partnering is believed to have the greatest potential benefit for
both companies.
The parties anticipate entering into additional documentation in
the coming weeks to further detail certain aspects of the
arrangement. The arrangement effectively replaces the Sciplay
joint venture as the vehicle through which the parties may
collaborate on internet gaming projects. The Sciplay-related
entities will become wholly owned subsidiaries of Scientific
Games.
"We believe that our restructured arrangement with Playtech
preserves the business and strategic rationale of the Sciplay joint
venture and even expands its scope - to be able to offer a powerful
combination of Scientific Games' proven ability to provide
comprehensive solutions to lotteries and other operators and
Playtech's leading internet gaming technology," stated Rick Weil, CEO of Sciplay. "At the same
time, the arrangement affords both parties greater flexibility in
the provision of internet gaming solutions, given the evolving and
highly dynamic internet gaming space."
Mor Weizer, CEO of Playtech,
commented, "This is a sensible reflection of the changing nature of
the opportunities and the expansion of the potential scope of our
relationship. The flexibility this affords both parties will
also ensure we can both work in the most effective way. We will
look to work together as we both recognize that a number of key
opportunities are outside the initial arrangement. It should also
be noted that the formal joint venture structure had certain
limitations and accounting complexities which we will no longer
experience."
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 machines and associated
gaming control systems. For more information, please visit
http://www.scientificgames.com.
Scientific Games Contact:
Cindi Buckwalter, Investor
Relations
+1-212-754-2233
About Playtech
Playtech develops unified software platforms and content for the
online and land-based gaming industry, together with providing a
range of ancillary services such as marketing, hosting and CRM
services. Leading gaming applications include casino, poker, bingo,
sports betting, live gaming, casual and fixed odds games. Playtech
provides licensees with the tools to maximise cross-selling
opportunities, player loyalty and yield, all through the powerful
management interface - the IMS. The Group's capabilities enable the
delivery of an integrated software or turnkey solution, with
players accessing online, broadcast, mobile and server-based gaming
terminals through a single account.
New licensees include existing online operators upgrading or
diversifying their offering, land-based casino groups, government
sponsored entities such as lotteries, and new entrants making their
online gaming debut, particularly in newly-regulated markets.
Founded in 1999, Playtech has some 1,000 employees located in
development centres in five countries, the majority of whom are
engaged in research and development of current and future gaming
technologies, together with 900 employees providing ancillary
services. For more information, please visit
http://www.playtech.com.
Playtech Contact:
Ross Hawley, Director of Investor
Relations
+44(0)20-3287-9900
Forward-Looking Statements
In this press release Scientific Games Corporation (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," "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 material from those projected 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, joint ventures and strategic
investments and relationships; failure of the Company's Northstar
joint venture to meet the net income targets or otherwise realize
the anticipated benefits under its private management agreement
with the Illinois Lottery; seasonality; inability to identify and
capitalize on trends and changes in the lottery and gaming
industries; 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 foreign operations; influence of
certain stockholders; dependence on key personnel; failure to
perform on 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 our 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.