Scientific Games Corporation (NASDAQ: SGMS) (“Scientific Games” or the “Company”) today announced it has signed a new contract to continue as the exclusive provider of instant games and related services for the Tennessee Education Lottery Corporation (“the Lottery”). Under the new agreement, Scientific Games will provide the Lottery with an instant game portfolio as well as an integrated Cooperative Services Program (CSP) which includes instant game production, product management support, game management systems, warehousing and distribution, and a wide range of related services such as interactive content and marketing research. The Lottery is currently ranked among the Top 10 highest performing lotteries in the world for instant game per capita sales.
The new contract, which was awarded through a competitive procurement process, continues the successful relationship Scientific Games and the Lottery have shared since 2003. The contract will begin January 1, 2015 with an initial term of seven years plus seven one-year extension options.
Rebecca Hargrove, President & CEO, Tennessee Education Lottery Corporation said, “The success of our instant product category with consumers in Tennessee has been integral to the more than $3 billion we have raised for education programs in Tennessee since the Lottery began 10 years ago. We look forward to continuing our team effort with Scientific Games and our more than 5,000 retailers to offer entertainment value to consumers in Tennessee through a superior instant game portfolio.”
“Our selection as the primary instant game provider for the Tennessee Education Lottery Corporation ensures the continuation of the game design, technology innovation, and instant category management services that have delivered 10 consecutive years of instant product growth for the Lottery,” said John Schulz, Senior Vice President, Instant Products for Scientific Games. “We are honored to continue to fulfill our role with the Lottery to help maximize revenues for education in the state of Tennessee.”
The Tennessee Education Lottery Corporation generated more than $1.36 billion in total retail sales in fiscal year 2013, which included $1.08 billion in instant game products.
About the Tennessee Education Lottery Corporation
The Tennessee Education Lottery Corporation operates entirely from the revenue it generates through the sale of its products. Net proceeds from sales of Lottery tickets, currently averaging over $6.3 million per week, fund specific education programs, including college scholarships and after-school programs. Since the Lottery began selling tickets on Jan. 20, 2004, it has raised more than $3 billion for these programs. In addition to the educational beneficiaries, players have won over $7 billion in prizes and Lottery retailer partners have earned over $753 million in retailer commissions.
About Scientific Games
Scientific Games Corporation is a leading developer of technology-based products and services and associated content for worldwide gaming and lottery markets. The Company’s portfolio includes instant and draw-based lottery games; electronic gaming machines and game content; server-based lottery and gaming systems; sports betting technology; loyalty and rewards programs; and social, mobile and interactive content and services. For more information, please visit: http://www.scientificgames.com.
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