Scientific Games' Successful Partnership with Georgia Lottery Corporation Extended for Seven Years

Staff Report From Georgia CEO

Friday, June 17th, 2016

Scientific Games Corporation announced that the Company will continue to provide its world-leading instant games and Cooperative Services Programfor instant game management to the Georgia Lottery Corporation with a seven-year extension of the current instant games contract.

Scientific Games has served as the Lottery's instant game partner since the Lottery's inception in 1993. The Company played a key role in growing the Lottery's instant games to a U.S. $3 billion consumer product category in 2015, increasing retail sales 18 percent in the last five years. Recently, Scientific Games' Jumbo Bucks games surpassed the $10 billion mark for all-time retail sales in the state, and remain the top-selling games for the Georgia Lottery. The Georgia Lottery Corporation is currently ranked No. 2 in the world for instant game per capita sales (La Fleur's Almanac).

Debbie Alford, President and CEO of the Georgia Lottery Corporation, said, "We look forward to continuing our partnership with Scientific Games in delivering innovative, high-quality and entertaining, instant scratch games for Georgia Lottery players.  The success of Georgia's instant scratch product, and our collaboration with Scientific Games, has been instrumental in generating more than $17 billion for education – benefitting millions of Georgia students and their families."

The instant game CSP agreement for the Georgia Lottery includes game design, security, manufacturing, marketing services, warehousing and distribution. CSP is driven by Scientific Games patented and proprietary technologies featuring MAP for marketing analysis and planning, and the SciTrak Ultra supply chain solution, which includes a predictive ordering system and an automated instant game sorting system. All of the technologies integrate with retail sales functionality to help manage instant products for the Lottery.

John Schulz, Senior Vice President, Global Instant Products for Scientific Games, said, "The Georgia Lottery is one of the most successful lotteries in the world. We have worked to create and manage a portfolio of instant games delivering record-breaking retail sales, and most importantly, record-breaking returns to the Lottery's educational beneficiaries in the state."

The Company's CSP partnerships have been refined over more than three decades and are currently in place in 20 lottery jurisdictions worldwide. In fiscal 2015, U.S. lotteries utilizing CSP delivered 50 percent higher average sales for instant games per lottery retailer, and more than $1 billion in combined growth in the instant product category for the 11 domestic lotteries participating in the program.

Scientific Games creates the games that account for 75 percent of the world's instant lottery game retail revenues. The Company supplies 23 of the world's top 25 lotteries ranked by instant game per capita sales. Scientific Games created the world's first secure instant game in 1974. Today, with operations on six continents, the Company provides lottery games, services, systems and retail technology to more than 150 lotteries globally.