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Scientific Games Announces Successful Launch of China Sports Lottery Instant Tickets
Mar 25, 2008 (08:03 AM EDT)
NEW YORK, March 25 /PRNewswire-FirstCall/ -- Scientific Games 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
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 obligations under the U.S. federal securities laws, we undertake no obligation to publicly update any forward-looking statements whether as a result of new information, future events or otherwise.
Web site: http://www.scientificgames.com/
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