GLI Europe Welcomes Gaming Industry Expert James Illingworth as New Director of European Business Development

HILLEGOM, The Netherlands (30 April 2013) – Gaming Laboratories International (GLI), the world’s leading gaming technical consulting and independent certification laboratory, and its affiliate GLI Europe BV, are pleased to announce the appointment of James Illingworth as their Director of European Business Development.

Illingworth is based in GLI’s European Headquarters in Hillegom, The Netherlands where he will lead the GLI Europe’s Business Development team.

Illingworth has extensive gaming experience across the continent, having worked in the industry for more than 18 years for companies such as Atronic, Magic Dreams SRL, Spielo International, John Huxley, and having commenced his career in gaming with publishing.

GLI Europe’s Managing Director Martin Britton welcomed Illingworth on board saying, “James brings a wealth of industry experience and contacts with him to GLI as well as his work ethic and enthusiasm. We are pleased to have been able to bring him into GLI and look forward to continued growth with him leading the Business Development team.”

Commenting on his appointment Illingworth said, “I am delighted to be joining GLI at this exciting time and look forward to working closely with Martin and the team in Europe and supporting our sister companies worldwide. With the gaming landscape changing, there is opportunity to work with and support companies in land-based and online markets. With GLI’s global infrastructure, it is the obvious choice for companies looking for regulatory and product certifications.”

Spielo International Highlights Slots Based on Popcap® Games, and Galaxis on Using Module at G2E Asia

MACAU – SPIELO International’s showing at its distributor RGB’s booth #213 at G2E Asia at from May 22 – 23, 2013 will feature three slot games based on the PopCap® mega-brand, new diversity™ multigame suites, and popular core games. On the Casino Systems side, the spotlight is on several GALAXIS™ modules, in particular GALAXIS BONUSING, the new GALAXIS ANALYTICS, as well as SYSTEM2go™ for multi-site slot operations.

Casino operators should get ready to soil their plants with three exciting licensed titles that casual gamers know and love from PopCap® Games, a division of Electronic Arts. The new slot games, based on internationally recognized PopCap franchises, are Plants vs. Zombies™ Gargantuar, Zuma®, and Bejeweled®. SPIELO International has worked closely with PopCap to stay true to the spirit of their brands and create terrifically fun and engaging new slot gaming experiences.

The spotlight is also on the company’s diversity™ multigame suites, Absolute Azure and Sweet Sunshine. Each suite features 10 varied games, grouped in categories, which can be selected by players through the touchscreen.

On the casino systems side, SPIELO International will demonstrate SYSTEM2go™, a complete multi-site slot system with fully automated accounting and reporting from any remote location with internet access. It includes a jackpots system, as well as optional ticket-in/ticket out (TITO), card cashless payment, player tracking, and points redemption.

Additionally, SPIELO International will showcase the entire diverse GALAXIS portfolio of casino systems solutions for casino slots and tables operations with features that offer an enhanced experience for players.

Special focus will be on GALAXIS BONUSING, offering the industry’s largest choice of bonusing options tailored to casinos’ needs, including Points Bonusing and Jackpot Bonusing features. All modules can be flexibly combined with each other and may be implemented independently of slot machine types, brands, and denomination. GALAXIS ANALYTICS, a new module for advanced gaming analytics, will also be featured for the first time at G2E Asia.

GALAXIS features nine modules with solutions and applications that manage operations across every area of the casino. Other modules to watch out for at G2E Asia include GALAXIS SLOTS, GALAXIS TABLES, and GALAXIS JACKPOTS.

SPIELO International is committed to the Asian gaming market, and its Casino Systems division increased its market penetration by nearly 300% in 2012. As the business continues to grow significantly, the company will continue strengthening its local support teams and working closely with its customers. The SPIELO International team is looking forward to welcoming customers to booth #213 at G2E Asia.

Gaming Laboratories International (GLI)’s Global Professional Services Division Completes Security Audit for the California State Lottery™

MONCTON, New Brunswick, Canada (April 22, 2013) – Gaming Laboratories International (GLI), the world’s leading gaming technical consulting and independent certification laboratory, and its Global Professional Services division have successfully completed a security audit for the California State Lottery™.

GLI was engaged to provide a highly important security audit to meet the lottery’s biennial regulatory security requirements. The audit was performed against lottery industry leading standards, namely the World Lottery Association Security Control Standard (WLA SCS) and the ISO 27001 Information Security Management Standard.

GLI’s Global Professional Services division is the first North American-based organization accredited to provide lotteries with WLA SCS certification audit services.

California State Lottery Chief Internal Audit Executive Roberto Zavala said, “GLI’s Security Audit went very well, was very professional, and was quite educational for me and others on my staff. The report to the Executive and the Commission was very well received and provided the roadmap and benchmarking necessary for improvements to move towards World Lottery Association Security Certification.”

GLI’s Global Professional Services division offers a wide range of information security services to gaming and non-gaming companies ranging from audits and training, to the application of new processes and ultimately certifications.

“Lotteries are public organizations, and as such, the trust of players, governments, auditors and industry regulators is paramount. Taking the steps required to validate the information security process proves that a lottery has taken steps to proactively mitigate the probability and negative impact of damaging security incidents, helping to safeguard that trust,” said Director of GLI’s Global Professional Services Division Greg Doucette.

Olg Selects Vendor for PLAYOLG.CA

TORONTO – The Ontario Lottery and Gaming Corporation (OLG) today announced it has selected a vendor to provide services to its internet gaming program, which will be available to legal age Ontarians in late 2013. Following a competitive procurement process, SPIELO G2 was selected as OLG’s primary service provider to provide interactive casino-style games for online play including slots, video poker games and table games. PlayOLG.ca will also allow customers to purchase lottery tickets including LOTTO 6/49, LOTTO MAX and ENCORE. OLG’s internet gaming program will be launched in phases with the first to include lottery and gaming offerings. Subsequent phases will include bingo, sports wagering, online poker and the introduction of other new products. “OLG will offer the only safe, lawful and regulated internet gaming option in Ontario. The move into internet gaming is an exciting step in OLG’s modernization,” said Rod Phillips, President and CEO of OLG. He continued, “We’re pleased to have an experienced company on board to help OLG provide an interactive gaming experience that will be a secure option, regulated by the Alcohol and Gaming Commission of Ontario.” As part of OLG’s internet gaming program, SPIELO G2 will provide a player account management system that will implement a strong online Responsible Gambling program and offer increased player protection, secure transaction and data privacy. This system will provide an age-verification requirement and customers will have the ability to manage their online play with time and money limits, and the option to take breaks from play.

Ontarians currently spend an estimated $400 million annually gaming with offshore grey market internet gaming providers. These mostly-offshore websites are not regulated in Ontario and the money spent on these sites leaves the Province.

OLG estimates that regulated internet gaming could increase the net profit to the province by $375-million over its first five years in operation, money that will support provincial priorities such as health care, community infrastructure and education.

The contract with BOSS MEDIA AB, a part of SPIELO G2, is for a five-year term and includes options to renew. Other Provinces in Canada that allow lawful regulated internet gaming include British Columbia, Manitoba, New Brunswick, Newfoundland, Nova Scotia, PEI and Quebec.

Lottery Awards Gaming Vendor Contract: Scientific Games Remains Lottery Vendor

Oklahoma City (April 15, 2013)—The Oklahoma Lottery announced today that the office of the State Chief Information Officer has awarded the Lottery’s gaming contract to Scientific Games Corporation.  The contract will become effective in August of this year. 

Scientific Games Corporation holds the current contract with the Oklahoma Lottery and is responsible for providing the Lottery with a statewide gaming system including: terminals and communications around the state; instant ticket printing, warehousing and distribution; field technical and sales staff and other services vital to the daily operations of the lottery.  Scientific Games has been the Oklahoma Lottery’s gaming vendor since the Lottery’s launch in 2005.

“We are pleased to be continuing our partnership with Scientific Games,” said Rollo Redburn, executive director of the Oklahoma Lottery. “Scientific Games has been a great partner over the last eight years and we look forward to our joint effort to raise money for Oklahoma education.”   

The contract is a one year contract with the option for nine renewal periods and the contract rate increased to 3.99 percent from 2.84 percent.  As a part of the contract, Scientific Games will replace all retailer terminals starting at the end of 2016.

“We’ve been operating for eight years with one of the best per retailer contract costs in the nation.  We have known for several years that a new contract would cost more and we have been preparing by reducing the size of our staff and cutting other operating costs,” said Redburn.   “Even though our contract rate is higher than our previous rate, it was not unexpected and the Scientific Games offer provided the best option for our gaming services at the best price.” 

WINNIPEG, Manitoba, April 15, 2013 /CNW/ – Pollard Banknote Limited (TSX: PBL) (Pollard Banknote) is pleased to announce that Mifal Hapayis, Israel’s national lottery, has awarded Pollard Banknote an exclusive contract for instant ticket manufacturing and support services. This new contract, which began in March 2013, is for three years, with two optional one‐year extensions. The contract value including extensions is estimated at $15 million (CDN).

Pollard Banknote has supplied instant tickets to Mifal Hapayis since 2002, with this new contract representing Pollard Banknote’s third consecutive exclusive contract. During this period, Mifal Hapayis’ annual instant ticket sales increased from 800 million Israeli New Shekels (ILS) to 1.327 billion ILS in 2012.

“Pollard Banknote is excited for this opportunity to continue developing our 10‐year relationship with Mifal Hapayis,” said Doug Pollard, Co‐Chief Executive Officer. “Mifal Hapayis appreciates our dedication to understanding their market and our ability to adapt to their changing needs. Wewill use our insight, knowledge, and experience to continue bringing new product concepts to Israel’s players.”

“Over the last decade, we have built a true partnership with Pollard Banknote based on collaboration and trust,” commented Avi Levy, Mifal Hapayis’ Instant Tickets Marketing Director. “Pollard Banknote’s unfailing attention to customer service is complemented with quality products and a high level of commitment to integrity and security. They have brought innovative products to the Israeli marketplace, such as their eye‐catching Scratch FX®, which has proven perfect for our higher‐priced tickets. We look forward to working with the Pollard Banknote team to continue our trend of annual sales growth.”

Mifal Hapayis was started in 1951 as a revenue source for healthcare initiatives. Today, with a primary focus on generating funds for education in Israel, the Lottery supports other good causes including culture, welfare, the environment, and the arts. In total, Mifal Hapayis has raised over 23 billion ILS to support Israeli good causes.

Scientific Games Announces Its Joint Venture Selected to Provide Marketing and Sales Services to the New Jersey Lottery

NEW YORK, April 15, 2013 /PRNewswire/ -- Scientific Games Corporation (Nasdaq: SGMS) today announced that the New Jersey Treasury Department has issued a notice of intent to award a contract to the Northstar New Jersey Lottery Group ("Northstar NJ") to provide marketing and sales services to the New Jersey Lottery. Northstar NJ is a joint venture comprised of Scientific Games International, Inc., GTECH Corporation, a subsidiary of Lottomatica Group S.p.A. (LTO.MI), and OSI LTT NJ Holdings Inc., an indirect subsidiary ofOMERS Administration Corporation, the administrator of the Ontario Municipal Employees Retirement System pension funds (OMERS). A subsidiary of Scientific Games will own approximately 18% of the Northstar NJ joint venture. An entity comprised of GTECH and OSI will own approximately 82% of the Northstar NJ joint venture.

Northstar NJ will provide a wide range of specialized services to the Lottery that will focus on strengthening its marketing and sales functions and will include support for lottery game development, the procurement of related goods and services and marketing and advertising. All of these activities will be subject to control and oversight by the Lottery. The services agreement is expected to commence after a transition period and is expected to end on June 30, 2029.  

Under the terms of the contract, Northstar NJ will be entitled to receive incentive payments to the extent the Lottery's net income exceeds specified target levels, subject to a cap of 5% of the applicable year's net income.  Northstar NJ will be responsible for payments to the State to the extent the Lottery net income levels set forth in Northstar NJ's successful bid are not achieved, subject to a cap of 2% of the applicable year's net income and a $20 million shortfall payment credit.  Northstar NJ will also be required to make a $120 million payment to the State upon execution of the agreement.

Scientific Games and GTECH will provide Northstar NJ with instant lottery games, lottery systems and services along with a player loyalty and rewards program.  Under the terms of a separate joint venture arrangement between Scientific Games and GTECH and supply arrangements with Northstar NJ, Scientific Games will have a 30 percent economic interest (and be responsible for 30 percent of the capital requirements) associated with such supply arrangements.

"We look forward to proving how meaningful a commercial lottery business model can be to the State of New Jersey and its residents," stated A. Lorne Weil, Chairman and Chief Executive Officer of Scientific Games. "We have been a long-time partner of the New Jersey Lottery, including launching the industry's first internet-based second chance drawing in 2001 for the New Jersey Lottery. We are proud to continue to be a part of the Lottery's progressive efforts in establishing itself as an industry leader in terms of both performance and innovation."

Lottomatica Group Announces that a Joint Venture Led By GTECH Corporation Has Been Selected to Provide Marketing and Sales Services to the New Jersey Lottery

ROME, ITALY and PROVIDENCE, RHODE ISLAND (US) – April 13, 2013 – Lottomatica Group S.p.A. announces that the New Jersey Treasury Department has issued a notice of intent to award a contract to Northstar New Jersey Lottery Group (“Northstar NJ”) to provide marketing and sales services to the New Jersey Lottery. Northstar NJ is a joint venture comprised of GTECH Corporation, a subsidiary of Lottomatica Group; Scientific Games International, Inc.; and, OSI LTT NJ Holdings Inc., an indirect subsidiary of OMERS Administration Corporation, the administrator of the Ontario Municipal Employees Retirement System pension funds (OMERS). The Services Agreement has a term through June 30, 2029, and is expected to be signed within 60 days.  GTECH and OSI will each own approximately 41% of Northstar NJ and a subsidiary of Scientific Games will own approximately 18%.

The Northstar NJ business plan will result in an annual growth rate of 6.07% over the first five years, generating an average of $1.18 billion annually in net income for the State over the five-year period, for an average annual increase of $211 million, and a total gain of more than $1 billion over that period, compared to what the State would have realized based on its own forecasts, if Lottery operations continued unchanged. Northstar NJ is entitled to receive annual incentive payments for annual performance which exceeds certain thresholds as outlined in the Services Agreement, and has given assurances that provide for payments to the State of New Jersey if a minimum, agreed-upon performance level is not achieved.  In addition, Northstar NJ is required to make a $120 million payment to the State upon execution of the Services Agreement.

“We are confident that our new role will help the New Jersey Lottery realize its full potential,” said Northstar NJ Chairman and GTECH President & CEO Jaymin B. Patel. “Northstar has developed a comprehensive business plan that extends the New Jersey Lottery’s trusted and successful brand and forward-thinking leadership. We will develop new and effective ways to increase the Lottery’s income and value to the State. With our combined 30 years of experience working with the New Jersey Lottery on previous contracts, Northstar NJ will help the Lottery grow revenue responsibly while strengthening the revenue stream for future contributions to good causes through innovation, technological advances, and community responsibility.”

“We look forward to proving how meaningful a commercial lottery business model can be to the State of New Jersey and its residents,” stated Scientific Games Chairman and Chief Executive Officer A. Lorne Weil.  “We have been a long-time partner of the New Jersey Lottery, including launching the industry’s first internet-based second chance drawing in 2001 for the New Jersey Lottery.  We are proud to continue to be a part of the Lottery’s progressive efforts in establishing itself as an industry leader in terms of both performance and innovation.”

The senior leadership of Northstar NJ has been identified and is ready to begin the transition to the new operating model immediately.

The Request for Proposals called for a firm that could take over a wide range of marketing, sales, and related functions for the Lottery, subject to its continuing control and oversight over all significant business decisions, focusing on core functions, including lottery game development, supply of related goods and services, and marketing and advertising, among other things.  Once the contractual arrangement is fully implemented and Northstar NJ’s business plan is approved by the Lottery, Northstar NJ will be entitled to reimbursement for its operating expenses.

Northstar Lottery Group to Implement OnePlace for Its Salesforce

New York, April 16, 2013 – Hudson Alley Software, Inc. announced today that Northstar Lottery Group, LLC is implementing its new iPad-based lottery sales force application, OnePlace.

“The Northstar Lottery Group sales force works hard to provide excellent service to lottery retailers throughout the state of Illinois,” said Jay Rivara, Northstar’s Vice President of Operations and Technology. “OnePlace is a tool that will help our field staff to meet their objectives in growing the retailer network and delivering record returns for the people of Illinois.”

OnePlace offers two user experiences; a native iPad app that is fast, incredibly usable, beautiful, and that uses locally cached data for users in the field, and a web app that has all of the features of the iPad app and more – optimized for users in the office or those using traditional PCs.

Since 2004, Hudson Alley Software has been the undisputed leader in lottery sales force software. Currently, 15 lottery jurisdictions use its software to help sales reps make the most out of each visit by providing actionable information about each retailer. Hudson Alley’s solutions have helped its customers to increase sales, improve retailer service, and to increase the amount of time lottery sales reps spend in the field by as much as 22%.

“Our goal with OnePlace is to offer a state of the art and budget friendly lottery sales solution on the best mobile platform available,” says Adam Perlow, CEO of Hudson Alley Software. “OnePlace is subscription-based and doesn’t require a large up-front investment. We believe that lottery sales force automation is now within the reach of all jurisdictions.”

Maryland Live Casino Authorized to Open Table Games to Public

(Baltimore) – Maryland Lottery and Gaming Control Agency Director Stephen Martino today signed the operations license allowing Maryland Live Casino to open table games to the public. The casino, owned by PPE Casino Resorts, will offer 122 table games -- including blackjack, craps, roulette, mini-baccarat and others. Approximately 50 traditional poker tables will be added to the casino floor when construction of a two-level poker room is completed in summer 2013.

“The Maryland Lottery and Gaming Control Agency has conducted a thorough review of Maryland Live’s operations, adherence to internal controls, policies and staff training,” Martino said. “As a result of our review, we are confident that the casino is prepared to operate its table games to the public.”

Maryland Live Casino conducted two successful controlled demonstrations of the casino’s table games on Friday, April 5 and Tuesday, April 9. The goal of the demonstrations, which were attended by several hundred people, was to test and assess the facility’s 122 table games; internal controls; employee training; surveillance and security; and technical systems. The casino’s portion of the table game proceeds from these events will go to non-profit benefits.

Located just off of MD 295 and Route 100 in Anne Arundel County, Maryland Live Casino opened its doors in June 2012. Licensed for 4,337 slot machines, Maryland Live is the second casino in the state to offer table games, and it employs 2,400 staff members with 300 additional employees expected when the poker room opens this summer.

Hollywood Casino Perryville, which opened in September 2010, began offering table games to the public March 6. The Casino at Ocean Downs, which opened in January 2011, is planning an expansion and has not provided specific details on table games at this time.

The Maryland Lottery and Gaming Control Commission is responsible for all matters relating to the regulation of the state’s casinos. In this regulatory role, the Maryland Lottery and Gaming Control Agency (LGCA) oversees all internal controls, auditing, security, surveillance, background investigation, licensing and accounting procedures for the facilities. To keep Marylanders informed and maintain integrity and transparency in its regulation of the state’s casinos, LGCA posts monthly financial reports on casino revenue on its website, gaming.mdlottery.com.

Black to Basics

Washington, D.C. – Betting that lighting will strike twice, the D.C. Lottery introduced District of Columbia Black II in early March. The ticket—now the frontrunner of the lottery’s $20 product line—is showing sales results that make good on that wager.

The original ticket—District of Columbia Black—launched in May 2010, and was the D.C. Lottery’s first-ever instant scratcher with a $1,000,000 top prize. This potentially life-changing prize amount and the ticket’s exclusive appeal excited audiences, became the agency’s most successful ticket ever, and sold out in just nine months of circulation—a record-setting achievement for the agency.

D.C. Black II makes its return bigger and better. This time, with even more cash prizes available, $7.5 million in total—including two top prizes of $1,000,000.

“We’re responding to player demand by bringing back D.C. Black. People love this ticket—the potential wins, the look, and feel of it. The game resonates with players,” states Buddy Roogow, executive director of the D.C. Lottery.

And, that boom is no accident. From Black Friday to the ‘little black dress,’ the color communicates ‘premium’ in product according to marketing insiders, and kismet for the D.C. Lottery. Ticket sales have increased weekly since its availability. Currently, revenue for District of Columbia Black II accounts for more than 50% of total sales for the lottery’s $20 ticket line.

MDI Licenses AMC’s “The Walking Dead” for Lottery Games

MDI Entertainment, LLC, a subsidiary of Scientific Games Corporation (Nasdaq: SGMS), announced today that it has added AMC’s “The Walking Dead” to its portfolio of licensed properties. Through this agreement, MDI extends licensing rights to all lotteries in the U.S., its territories and Canada. Rights include logos, set images and iconic zombie characters. In addition to printed and terminal-generated games, MDI will offer lotteries show-themed digital games delivered to players via the internet and mobile devices as permitted by law, including electronic instant tickets (lottery instant tickets purchased online), 2nd Chance games (played online for drawing entries and instant win prizes) and “just for fun” games. Branded merchandise will be available for prizing, and experiential grand prizes can be developed.

Currently in season three, “The Walking Dead” reigns as the most watched drama in basic cable history. In addition to its remarkable viewership, it has more than 15 million Facebook fans, and more than a million people subscribe to the show’s newsletter.

“It’s safe to say that ‘The Walking Dead’ is far more than a cult hit at this point,” commented Steve Saferin, President, Properties Group and Chief Creative Officer for Scientific Games. “When a show continues to grow season after season and continues to break records among the 18- to 49-year-old demo, it’s definitely noteworthy. The size and passion of the fan base in this coveted adult demographic, along with the constant positive press about the show, leads us to believe that ‘The Walking Dead’ will make a great licensed game for lotteries.”

“The Walking Dead” debuted on AMC in October of 2010, and is based on the comic book series written by Robert Kirkman and published by Image Comics. It chronicles the months and years that follow the zombie apocalypse, and tracks a group of survivors, led by police officer Rick Grimes, who travel in search of safety and security. The story explores the challenges of life in a world overrun by zombies, the toll these challenges take on the survivors and how interpersonal conflicts sometimes present a greater danger to survival than the zombies themselves. Over time, the characters are changed by the constant exposure to death, some growing willing to do anything to survive. “The Walking Dead” received the Emmy® Award for Outstanding Prosthetic Makeup two years in a row (2011 and 2012).

INTRALOT: The Only International Company Certified as Approved Terminal Supplier by China Sports Lottery

INTRALOT Beijing, a subsidiary of INTRALOT Group in China, following an international lottery and betting terminal supplier selection and evaluation process is the only international company of the lottery sector certified as approved terminal supplier by the China Sports Lottery Administration (CSLA) among the total six (6) companies certified. By receiving the corresponding certification for its Photon terminal, INTRALOT will be allowed to provide Photon to the 31 provincial CSLA lottery companies in China (provinces, cities and autonomous regions) during the upcoming terminals replacement cycle. Photon, INTRALOT’s integrated terminal that combines sophisticated technology with high ergonomy and efficient design, was certified by CSLA, as it meets the Lottery’s high standards regarding functionality, adaptability, efficiency, reliability and security.

Following the completion of the selection and evaluation process, the CSLA provincial lotteries will gradually replace their approximately 130,000 terminals installed in their Points of Sale countrywide with terminals provided by the six (6) companies whose terminals have been certified by CSLA. The new terminals will be connected to CSLA Central System.

On the occasion of the certification, Mr. Marios Mitromaras, General Manager of INTRALOT Asia, stated: “During the last years, INTRALOT has become the dominant player in Asia with presence in China, Taiwan, S. Korea, Philippines, and Malaysia. Our honorable certification by CSLA for our Photon terminal and the fact that we are the only international company to be awarded with such a certification ratifies our leading position in the development and supply of innovative, state-of-the-art technology to Lotteries and operators worldwide. We are looking forward to participating in the terminals replacement cycle of the CSLA provincial lotteries, confident that Photon will be the terminal of their choice.”

China has a population of more than 1.34bn people and is the world's second largest economy, with an annual GDP growth rate of 9 percent since 2002. In China, the only legal form of gambling is through lotteries and lottery products authorised by the state. China Sports Lottery is one of the two authorized lotteries in the country and its purpose is to raise money to enhance public sports facilities. The lottery sector has expanded greatly in China over the past 20 years and in 2012 there was an annual growth of 18% reaching $42bn in sales. The proceeds from lottery products have come to constitute a significant part of the government's financial income.

Lottomatica Group Announces 34% Eps Growth versus 2011; Strong Cash Flow Generation in 2012

Consolidated Financial Highlights

• Levered free cash flow of €303 million
• Proposed dividend of €0.73 per share; amendments to by-laws; new stock-based incentive plans
• Group announces new 2013 guidance; new growth investments and continued improvement in NFP
• New unified organization structure to support growth, improve efficiencies

ROME (ITALY) – PROVIDENCE, RHODE ISLAND (U.S.), March 12, 2013 – Lottomatica Group S.p.A.’s Board of Directors, chaired by Mr. Lorenzo Pellicioli, today approved the draft consolidated financial statements and the draft stand-alone financial statements for the full year which ended December 31, 2012, and reviewed 2012 fourth-quarter results. The Board will propose to the Annual Shareholders’ Meeting a cash dividend of €0.73 per share, with an ex- dividend date of May 20, 2013, payable on May 23, 2013.

“Lottomatica Group had another good year in which we achieved growth in all of our businesses and major geographies. Our GTECH and SPIELO subsidiaries continue to deliver solid gains helping to better diversify our sources of growth and achieve our 3-year plan guidance ahead of schedule,” said Marco Sala, CEO of Lottomatica Group. “In the year ahead, we expect significant contributions from our success in the Canadian VLT replacement cycle, continued GTECH same store sales growth, and new initiatives in the Italian market. Our recently announced plan to further integrate all our subsidiaries into a unified, customer-facing organization under the GTECH banner will strengthen our leadership in the industry, as we achieve faster growth, generate greater synergies and create more value.”

2/20 “EPS grew 34% in 2012, and, through the continued execution of our strategy, we generated significant levered free cash flow of €303 million,” said Alberto Fornaro, CFO of Lottomatica Group. “In addition, our consolidated Net Financial Position improved by nearly €200 million to €2.55 billion. Our leverage ratio decreased from 2.8x to 2.5x in 2012, a target achieved a year ahead of schedule. Deleveraging remains a priority for the Company and a 2.3x - 2.4x leverage ratio by year-end is expected, which represents a further improvement to the target set one year ago.”

For the year ended December 31, 2012, Revenues totaled €3.08 billion, up 3.4% compared to €2.97 billion in 2011. At constant currency, revenues were €3.0 billion. Consolidated revenue growth was mainly driven by GTECH Lottery and SPIELO International, and favorable foreign exchange rates. GTECH same store service revenues grew approximately 8% in 2012 versus the prior year, due in part to record first quarter jackpot activity in the U.S. and the continued growth of instant-ticket sales, particularly in California, Texas, and Illinois.

SPIELO International service revenue grew 9% due to higher revenues from the Italian VLT market, participation markets in the U.S., and central systems. The €44 million increase in SPIELO’s product sale revenue was principally due to the sale of a new central system and terminals in Sweden and terminals to customers in the Canadian market. SPIELO’s 100% success rate in all 11 procurements in Canada will continue providing positive contributions to the Group in 2013 and beyond.

The 6.3% increase in EBITDA was attributable to growth across all three business segments. At constant currency, EBITDA was up 4.4%. Higher revenues and profits from the GTECH Lottery and SPIELO International segments and Machine Gaming in Italy, along with operational efficiencies in Italy, and favorable foreign exchange rates, contributed to the €62 million increase over 2011.

Operating Income increased €44 million to €583 million in 2012, which, together with a €13 million decrease in interest expense and a more favorable effective tax rate, were the main contributors to the increase in Net Income attributable to the parent which grew from €173 million in 2011 to €233 million. On a per share basis, EPS grew 34% from €1.01 to €1.35.

The Board will propose a dividend distribution of approximately €126 million, or 41% of levered free cash flow, consistent with the Group’s dividend policy. Levered free cash flow was €303 million, compared to €281 million in 2011.

During the year, Capital Expenditures totaled €256 million, down from €345 million in 2011. Capital Expenditures were at the lower end of the guidance range provided in 2012. The timing of certain items anticipated in 2012 has now shifted to 2013.

At December 31, 2012, Consolidated Shareholders’ Equity totaled €2.64 billion. Lottomatica Group had a Net Financial Position (NFP) of €2.55 billion, compared to €2.74 billion as of December 31, 2011.

New Group Structure

The Group, under the new unified customer-facing structure announced in January, will be aligned around three global geographic regions – the Americas, International, and Italy – and supported by a central products and services structure. These changes, which will be completed before year-end, are aimed at supporting growth, improving efficiency and enhancing profitability across operations, stepping up the pace of internationalization of the Group to better capture its full potential.

The central products and services structure will be responsible for product development and marketing, manufacturing, and delivery for all product lines. Synergies and efficiencies are currently being quantified and will mainly stem from procurement centralization and integration, product development, platform integration, and data center and corporate IT services consolidation. These actions are not expected to materially impact 2013 results and efficiency improvements are expected over the following three years.

In 2013, the Group expects revenues to grow across all business segments, with the Canadian VLT replacement cycle as the main contributor. In the current economic environment in Italy, a number of initiatives are in place including marketing efforts, product innovation, and retailer optimization. The Group also expects a Lotto late number contribution in line with the past five- year average and a lower sports-betting payout compared to last year. Same store sales from the U.S. and International lottery businesses are expected to benefit from continued improvements in instant ticket sales as well as an increased customer focus on growth initiatives. The transition to the new Integrated Services model in Indiana is expected to take place in the second half of 2013. The Group also expects to see expansion opportunities in the areas of private management for lotteries; government and commercial gaming machine replacement; as well as in the onset of Internet wagering in the U.S. and growth of nationally-regulated markets in the Interactive sector.

Maintenance Capital Expenditures are expected to be in the €235 million - €250 million range, given the relatively limited number of contracts up for renewal, or approximately 23% of 2013 guidance mid-point EBITDA. The Group also plans to pursue a number of new growth initiatives including investments in Indiana, and potentially New Jersey, as well as selectively expanding the Group’s presence in Italy in sports betting and supporting SPIELO’s expansion of VLTs. Therefore, the Group expects discretionary investments, or growth Capital Expenditures, in the range of €115 million - €130 million. Total Capital Expenditures for 2013 are therefore expected in the range of €350 million - €380 million.

The Group expects to continue improving its leverage ratio (ratio of NFP to EBITDA) to 2.3x - 2.4x by year-end.

Full-Year Results by Segment

Italian Operations
Total revenues from Italian operations were approximately €1.79 billion in 2012, compared to €1.88 billion in 2011. Revenues were impacted by increased VLT taxation, higher sports betting payouts, and lower Lotto late number wagers, however benefited from commercial services and interactive expansion. EBITDA grew by €14 million to €736 million, due to cost efficiencies and contributions from all product lines excluding sports betting, which was impacted by exceptionally high payouts.

GTECH Lottery and SPIELO International
Total GTECH Lottery revenues grew 15.8% from €857 million in 2011 to €993 million in 2012. At constant currency, revenues were €930 million. Total revenues for SPIELO International were €338 million, up 20.9% versus last year, primarily due to higher product sales which were up 36.8%. Service revenue for SPIELO increased €15 million in 2012 versus 2011 principally due to higher revenue from the VLT markets in Italy and the U.S. Combined EBITDA grew €48 million as a result of same store revenue growth, higher product sales and favorable foreign exchange, partially offset by contract repricing, which is not expected to have a material impact in 2013.

In 2012, GTECH successfully completed 29 system conversions and integration projects for its customers across the globe. GTECH won lottery operator contracts in Indiana and Costa Rica, as well as new lottery contracts in New Zealand, Lithuania, Argentina, and Colombia. GTECH also received extensions from customers in the United Kingdom, Finland, Ireland, Oregon, South Dakota, and Arizona.

Also during the year, SPIELO secured interactive and/or sports betting contracts with customers in Norway, Spain, Denmark, Canada, and North America.

Additional Information: 2012 Fourth-Quarter Results
For the fourth quarter ended December 31, 2012, Revenues totaled €813 million, compared to €828 million in the fourth quarter of 2011.
EBITDA was €246 million in the fourth quarter of 2012, up 5.9% compared to €232 million in the same period last year.
Operating Income was €126 million in the fourth quarter of 2012, compared to €117 million in the same period last year, up 7.6%.
Net income attributable to the parent was €63 million, compared to €47 million in the same period last year.

Call of Annual Shareholders’ Meeting – Name Change to GTECH; Amendments to By-Laws;
- Group Compensation Policy with New Stock-Based Incentive Plans

The Board of Directors has also approved - for submission to the Annual Shareholders’ Meeting to be held on May 8 and 9, 2013, respectively on first and second call – the Group name change to GTECH S.p.A.; amendments to the by-laws required to incorporate certain provisions introduced by Law No. 120 of July 12, 2011 related to gender parity in managing and control bodies of listed companies; and the Group compensation policy with new stock-based incentive plans for selected Group employees.

The above-mentioned stock-based incentive plans reserved for Lottomatica and/or its subsidiaries’ employees, pursuant to article 114-bis of the Consolidated Financial Act, consist of the 2013-2019 stock option plan and 2013-2017 share allocation plan. The plans are focused on medium to long term strategic targets and link the compensation of the beneficiaries to value creation for shareholders, while encouraging loyalty and retention. Pursuant to Italian Stock Exchange recommendations, vesting of the plans shall be subject to achievement of 3-year consolidated EBITDA targets. Among the beneficiaries, the CEO and other Executives with Strategic Responsibilities shall retain a minimum of the stock received/arising from the exercise of options for a further 3 years.

For further information on the plans, please refer to the memoranda available at the Company’s registered office and on Lottomatica's website, www.lottomaticagroup.com, under the Governance section - Documents and reports -Shareholders’ Meeting, May 8 and 9, 2013, where the remaining documentation required by the relevant provisions in connection with the agenda items will be made available as well.

INTRALOT: Successful Presence in Jamaica SVL Profits Up 77% in 2012

Supreme Ventures Limited (SVL), a leading public listed gaming company in Jamaica, in which INTRALOT holds a strategic stake, announced its FY2012 results. The financial performance of SVL for 2012 improved significantly year over year, achieving its best performance since the company was listed in the Jamaican Stock Exchange in 2006.

SVL’s Consolidated Revenues for FY2012 increased by 6.0% reaching $US 306.8m, compared to 2011. EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) posted a 31% increase reaching $US 17.4m. EAT-am (Earnings After Taxes and after minorities) were shaped at $US 11.3m posting an increase of 77% over 2011.

Mr. Nikos Nikolakopoulos, Managing Director of INTRALOT Latin America and Member of SVL’s BoD, stated: “The Company's performance was achieved on improved revenue streams following the recent reorganisation of the company's operations. In 2013, we will continue the strategy of realigning our operations to become more efficient and to focus on our core competence of gaming.”