Scientific Games Completes System Conversion for Loteria Electronica de Puerto Rico as Part of Four-Year Contract Extension
ALPHARETTA, GA – February 11, 2013 – Scientific Games Corporation (Nasdaq: SGMS) today announced the successful completion of an integrated lottery gaming system conversion for Loteria Electronica de Puerto Rico. The conversion was completed as part of a four-year extension agreement with Scientific Games for the operation of Loteria Electronica de Puerto Rico, as well as for marketing, distribution and other services. The agreement extends Scientific Games’ contract with the Lottery to June 30, 2016. The terminal and communications conversion was completed one month ahead of schedule and featured the first deployment of PlayCentral™ self-service terminals in Walmart Supercenters in the U.S.
“We are delighted to announce that not only was there absolutely no disruption in sales during the system conversion but in fact sales increased during the conversion period,” said Teresita Carrion Geigel, Deputy Secretary of the Bureau of Lotteries at the Puerto Rico Treasury Department. “We now have a system in place to deploy new games and new sales initiatives with our partner, Scientific Games. Our retailers have responded with accolades for the new terminals and the new digital displays that promote the games in their stores. We are also positioned to expand our distribution with the new self-service and hand-held point of sale devices.”
Scientific Games successfully executed and installed a new communications network, including dual communication for top-selling retailers to ensure constant connection to the central system, a full suite of draw-based game systems and a range of new lottery equipment in 2,000 retail locations. New PlayCentral self-service terminals and WAVE™ terminals were deployed, as well as hand-held terminals to expand the Lottery to non-traditional locations. The deployment also included new peripheral equipment, such as wireless triple jackpot signs and ticket checkers, and Lottery InMotion™, a digital advertising and content management system for retail point of sale. Scientific Games’ contract with the Lottery includes provisions for lottery systems and services as well as the manufacturing and distribution of instant tickets throughout Puerto Rico, including shipping, warehousing and telemarketing, as well as support with game design, marketing and retail network optimization. Many of these services are provided to the Lottery as part of the Company’s Cooperative Services Program (CSP), which integrates instant game category management.
“We are proud to continue our collaboration with Loteria Electronica. In the seven years we have been their partner, the Lottery’s revenue has grown 42%,” said Pat McHugh, President, North America Lottery Systems for Scientific Games. “Our focus remains on driving continued sales growth to generate additional benefits for the citizens of Puerto Rico.”
In fiscal year 2012, Loteria Electronica de Puerto Rico had sales of more than $452 million, with contributions to the Treasury’s General Fund and several important public programs totaling more than $112 million. In the past, some of these beneficiaries included the University of Puerto Rico, Sports and Recreation, the Fund for Services for Catastrophic Illnesses, the Housing for the Elderly Program, and the Fund for Municipalities, which helps cover operating expenses and capital improvements in cities and towns throughout Puerto Rico. Additional games are being considered by the Government; part of the revenues will benefit the Public Employees Retirement System.