Scientific Games awarded New York Lottery instant ticket contract

The firm was awarded this seven-year contract following a competitive procurement process, as previously announced on May 10, and final New York State approval was obtained last August 15.

Revenue to Scientific Games will continue to be earned on a price-per-thousand tickets basis; however, in the new contract, the company will also receive a percentage of net sales less prizes for instant ticket game management and marketing, and will be entitled to earn incentive awards based on the lottery achieving benchmark levels of performance.

"The final selection of Scientific Games as our primary printer was the result of a detailed evaluation process and a thorough analysis of the Company's capabilities," said Gordon Medenica, Director of the New York Lottery. "We believe this new incentive-based contract structure is a win-win for New York's school children as well as Scientific Games, a New York-based company."

"We are excited to once again be chosen as the primary vendor by the New York Lottery, the largest of any jurisdiction in the U.S. and the third highest on a per capita basis," commented Jim Trask, President of the Printed Products Group for Scientific Games. "This new arrangement will enable us to fully utilize our innovative content and marketing to drive sales for the Lottery and help them grow profits for Education."

In fiscal year 2010, the New York Lottery generated us$ 6.8 billion in sales from traditional Lottery games, including us$ 3.5 billion from its instant ticket business. During that same time period, The Lottery's traditional business brought in us$ 2.1 billion in profit for education.