From the Wires
Scientific Games Announces its Consortium Selected for the Greek State Lotteries' Concession
Dec. 12, 2012 04:00 PM
NEW YORK, Dec. 12, 2012 /PRNewswire/ -- Scientific Games Corporation (Nasdaq: SGMS) today announced that the Hellenic Republic Asset Development Fund declared the consortium in which Scientific Games Global Gaming S.a.R.l, a subsidiary of Scientific Games, is a participant, as the provisional successful bidder in the tender process for a 12-year concession for the exclusive rights to the production, operation, circulation, promotion and management of the Hellenic Lotteries in Greece.
The consortium is principally comprised of OPAP S.A. (ATH: OPAP), Scientific Games and Intralot (ATH: INLOT).
The concession will cover current and future instant lotteries which are conducted using physical tickets, as well as internet sales of physical tickets. Operations under the new concession are subject to various regulatory approvals, including Greek parliamentary approval.
Scientific Games will have a 16.5% equity interest in the consortium and will be responsible for the instant ticket marketing function, with a supply agreement providing for all instant ticket production and game design services. The consortium will pay an upfront payment of €190 million and will be responsible for a monthly fee equal to a percentage of the gross gaming revenues.
"Scientific Games is proud to be selected as part of the consortium that will manage the Greek government's traditional lotteries and re-launch the instant ticket product. We view Greece as an important jurisdiction and are confident that implementing the best practices we have successfully used with other lotteries around the world will result in significant incremental revenue for the Greek government. With some of the world's leading lottery companies working together in this initiative, our consortium is well positioned to help the Greek government succeed in its objectives of raising revenue for the Greek state while giving Greeks access to world class lottery products," said A. Lorne Weil, Chairman and Chief Executive Officer of Scientific Games.
In 2011, OPAP generated €4.4 billion in total lottery retail sales in Greece, representing approximately €386 in per capita sales, making it the third largest lottery in the world in terms of per capita sales based on data provided by La Fleur's. The instant ticket lottery has been inactive since 2003.
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.
Cindi Buckwalter, Investor Relations
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," "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 Northstar 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, 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 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.
SOURCE Scientific Games Corporation