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Wednesday, June 13, 2012 at 09:51AM
NEW YORK, June 12, 2012 -- Scientific Games Corporation (Nasdaq: SGMS) announced today that it has agreed to assist the Commonwealth of Pennsylvania ("the Commonwealth") in its potential procurement of a private management agreement ("PMA") for the management of the Pennsylvania Lottery ("the Lottery"). Scientific Games has been the Lottery's exclusive supplier of instant ticket games and lottery systems and other services since 1997 and 1977, respectively. In support of the potential procurement for the PMA, Scientific Games will assist the Commonwealth in the due diligence phase of exploration. Should the Commonwealth execute a PMA, Scientific Games will continue in its current role as the exclusive supplier for the remainder of the existing agreements, including all contract extension options, ending in August 2017 and December 2018, respectively. Due to its role in this process, Scientific Games has not responded to the April 2, 2012 Request for Qualifications and will not bid on a private management agreement for the Lottery.
"Scientific Games is a valuable partner in our Lottery operations, and their industry expertise has helped the Pennsylvania Lottery establish itself as an industry leader," said Pennsylvania Lottery Executive Director Todd Rucci. "We're fortunate to be able to benefit from their industry insight and assistance in analyzing and optimizing a private management agreement that will preserve and expand upon the Lottery's security, integrity and success."
"We are extremely supportive of the Commonwealth's innovative approach toward exploration of a private management agreement," stated Lorne Weil, Chairman and Chief Executive Officer of Scientific Games. "Having been a trusted partner of the Commonwealth for a long time, we look forward to helping Pennsylvania achieve its long-term growth goals for the Lottery."
In fiscal year 2011, the Pennsylvania Lottery had sales of more than $3.2 billion; contributions to programs for older Pennsylvanians totaled more than $960 million.
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