NEW YORK, March 25 /PRNewswire-FirstCall/ -- Scientific Games (Nasdaq:
SGMS) today announced the successful launch of Olympic themed instant lottery
tickets by the China Sports Lottery ("CSL") in the People's Republic of China
("PRC"). The program debuted on Sunday, March 23rd, in the Shandong province
with over 1,500 initial retail locations, with the combination of distributed
tickets and activations generating approximately 40 million Yuan, or US$5.6
million, on the first day. The CSL and Scientific Games expect to expand to
5,000 retailers in Shandong in the coming weeks and to add an additional
provinces every couple of weeks until all 31 provinces in the PRC sell CSL
instant tickets.
The tickets display the Fuwas (the five Beijing Olympic mascots), the
Olympic torch relay route and other designs. The new instant lottery tickets
have face values currently ranging from three to ten Yuan and offer players a
65 percent prize payout. The distribution and validation of CSL instant
tickets throughout the PRC are being tracked by a central system and retailer
validation terminals that have been provided by Scientific Games and are
operated by CSL. Scientific Games will also provide a national call center and
90,000 instant ticket validation terminals within two years, in addition to
related services such as game design, marketing and a variety of distribution
services to the CSL provincial lotteries. Revenues to Scientific Games will be
based on a percentage of retail sales.
"We are thrilled to report that the CSL's national instant ticket program
had a smooth launch, and look forward to adding additional provinces in the
coming months ahead of the Beijing Olympics," stated Lorne Weil, Chairman and
CEO of Scientific Games. "We were impressed with the level of sales on the
first day, and expect to see substantial growth which will raise more funds
for the great causes of the
China Sports Lottery."
In 2007, China's total lottery sales exceeded 100 billion Yuan (US$14
billion), an increase of 20 billion Yuan or 24 percent over 2006, setting a
20-year record in China's lottery history. Of the 100 billion in total lottery
sales, only approximately four billion Yuan or four percent were from instant
tickets, in sharp contrast to the United States where instant tickets account
for over 55 percent of total lottery sales.
About Scientific Games
Scientific Games Corporation is the leading integrated supplier of instant
tickets, systems and services to lotteries worldwide, a leading supplier of
server based gaming machines and systems, Amusement and Skill with Prize
betting terminals, interactive sports betting terminals and systems, and
wagering systems and services to pari-mutuel operators. It is also a licensed
pari-mutuel gaming operator in Connecticut, Maine and the Netherlands and is a
leading supplier of prepaid phone cards to telephone companies. Scientific
Games' customers are in the United States and more than 60 other countries.
For more information about Scientific Games, please visit our web site at
www.scientificgames.com.
Company Contact:
Investor Relations
Scientific Games Corporation
212-754-2233
Forward-Looking Statements
Certain statements in this press release which are not historical facts
constitute forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements, including those
relating to timing of contracts, renewals or other events, business plans and
performance objectives, 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 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 in our markets; technological change;
protection of intellectual property; security and integrity of software and
systems; laws and government regulation, including those relating to gaming
licenses, permits and operations; seasonality; dependence on suppliers and
manufacturers; factors associated with foreign operations; failure to retain,
renew or perform on contracts; resolution of pending or future litigation; and
other factors described from time to time in our filings with the SEC,
including our most recent Annual Report on Form 10-K. Forward-looking
statements speak only as of the date they are made, and except for our ongoing
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to publicly update any forward-looking statements whether as a result of new
information, future events or otherwise.