NEW YORK, January 24, 2012 /PRNewswire/ --
Scientific Games Corporation (Nasdaq: SGMS) and Playtech Limited (AIM: PTEC) today announced that they have entered into an agreement to restructure their strategic relationship relating to internet gaming products and services. Under the agreement, Playtech will license its leading online gaming software to Scientific Games on a mutually non-exclusive basis for use by certain categories of Scientific Games' current and prospective customers, including U.S. casinos and lotteries worldwide.
This restructured arrangement seeks to replicate the successful strategic relationship that Scientific Games' Global Draw subsidiary and Playtech have in place for use of Playtech's Videobet technology for server-based gaming machines. Scientific Games and Playtech expect to continue their close working relationship going forward, focusing on opportunities where partnering is believed to have the greatest potential benefit for both companies.
The parties anticipate entering into additional documentation in the coming weeks to further detail certain aspects of the arrangement. The arrangement effectively replaces the Sciplay joint venture as the vehicle through which the parties may collaborate on internet gaming projects. The Sciplay-related entities will become wholly owned subsidiaries of Scientific Games.
"We believe that our restructured arrangement with Playtech preserves the business and strategic rationale of the Sciplay joint venture and even expands its scope - to be able to offer a powerful combination of Scientific Games' proven ability to provide comprehensive solutions to lotteries and other operators and Playtech's leading internet gaming technology," stated Rick Weil, CEO of Sciplay. "At the same time, the arrangement affords both parties greater flexibility in the provision of internet gaming solutions, given the evolving and highly dynamic internet gaming space."
Mor Weizer, CEO of Playtech, commented, "This is a sensible reflection of the changing nature of the opportunities and the expansion of the potential scope of our relationship. The flexibility this affords both parties will also ensure we can both work in the most effective way. We will look to work together as we both recognize that a number of key opportunities are outside the initial arrangement. It should also be noted that the formal joint venture structure had certain limitations and accounting complexities which we will no longer experience."
About Scientific Games
Scientific Games Corporation is a global leader in providing customized, end-to-end gaming solutions to lottery and gaming organizations worldwide. Scientific Games' integrated array of products and services includes instant lottery games, lottery gaming systems, terminals and services, and internet applications, as well as server-based interactive gaming machines and associated gaming control systems. For more information, please visit http://www.scientificgames.com.
Scientific Games Contact:
Cindi Buckwalter, Investor Relations
Playtech develops unified software platforms and content for the online and land-based gaming industry, together with providing a range of ancillary services such as marketing, hosting and CRM services. Leading gaming applications include casino, poker, bingo, sports betting, live gaming, casual and fixed odds games. Playtech provides licensees with the tools to maximise cross-selling opportunities, player loyalty and yield, all through the powerful management interface - the IMS. The Group's capabilities enable the delivery of an integrated software or turnkey solution, with players accessing online, broadcast, mobile and server-based gaming terminals through a single account.
New licensees include existing online operators upgrading or diversifying their offering, land-based casino groups, government sponsored entities such as lotteries, and new entrants making their online gaming debut, particularly in newly-regulated markets. Founded in 1999, Playtech has some 1,000 employees located in development centres in five countries, the majority of whom are engaged in research and development of current and future gaming technologies, together with 900 employees providing ancillary services. For more information, please visit http://www.playtech.com.
Ross Hawley, Director of Investor Relations
In this press release Scientific Games Corporation (the "Company") makes "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward- looking statements describe future expectations, plans, results or strategies and can often be identified by the use of terminology such as "may," "will," "estimate," "intend," "continue," "believe," "expect," "anticipate," "could," "potential," "opportunity," or similar terminology. These statements are based upon management's current expectations, assumptions and estimates and are not guarantees of future results or performance. Actual results may differ material 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; technological change; retention and renewal of existing contracts and entry into new or revised contracts; availability and adequacy of cash flows to satisfy obligations and indebtedness or future needs; protection of intellectual property; security and integrity of software and systems; laws and government regulation, including those relating to gaming licenses, permits and operations; inability to identify, complete and integrate future acquisitions; inability to benefit from, and risks associated with, joint ventures and strategic investments and relationships; failure of the Company's Northstar joint venture to meet the net income targets or otherwise realize the anticipated benefits under its private management agreement with the Illinois Lottery; seasonality; inability to identify and capitalize on trends and changes in the lottery and gaming industries; inability to enhance and develop successful gaming concepts; dependence on suppliers and manufacturers; liability for product defects; fluctuations in foreign currency exchange rates and other factors associated with foreign operations; influence of certain stockholders; dependence on key personnel; failure to perform on contracts; resolution of pending or future litigation; labor matters; and stock price volatility. Additional information regarding risks and uncertainties and other factors that could cause actual results to differ materially from those contemplated in forward-looking statements is included from time to time in the Company's filings with the Securities and Exchange Commission, including under the heading "Risk Factors" in our periodic reports. Forward-looking statements speak only as of the date they are made and, except for the Company's ongoing obligations under the U.S. federal securities laws, the Company undertakes no obligation to publicly update any forward-looking statements whether as a result of new information, future events or otherwise.
SOURCE Scientific Games Corporation; Playtech Limited