Profile: Scientific Games Corporation (SGMS.O)

Scientific Games Corporation (Scientific Games), incorporated on July 2, 1984, is supplier of technology-based products, systems and services to gaming markets worldwide. The Company operates through three business segments: Printed Products Group, Lottery Systems Group and Diversified Gaming Group. The Printed Products Group consists of the Company’s instant lottery ticket business and its prepaid phone card business. Instant tickets and related services includes ticket design and manufacturing, as well as value-added services, including game design, sales and marketing support, specialty games and promotions, inventory management, and warehousing and fulfillment services. The Lottery Systems Group is a provider of customized computer software, equipment and data communication services to government-sponsored and privately operated lotteries in the United States and international markets. The Diversified Gaming Group provides services and systems to private and public operators in the gaming markets and in the pari-mutuel wagering industry.

Printed Products Group

The Company provides lotteries with access to various entertainment brands. Its entertainment brands include Deal or No Deal, Major League Baseball, National Basketball Association, Harley-Davidson, Wheel-of-Fortune, Monopoly, Corvette and World Poker Tour. It also provides lotteries with customized partnerships, or cooperative service programs, to help lotteries manage and support their operations. Its instant ticket customers include 40 United States jurisdictions that sell instant lottery tickets, and have sold instant tickets and related services to lotteries in over 50 other countries.

The entertainment brands include themed instant games, such as Betty Boop, The Pink Panther, I Love Lucy, Harley-Davidson, Monopoly and Wheel of Fortune. The Company also provides branded merchandise prizes, advertising, promotional support, turn-key drawing management and prize fulfillment programs. The brands offered as non-cash prizes for lottery players include Deal or No Deal, Major League Baseball, National Basketball Association, Corvette, Jeopardy! and World Poker Tour.

The Company has contracts for co-operative services with the United States jurisdictions of Arizona, Delaware, District of Columbia, Florida, Georgia, Maine, Ohio, Oklahoma, Pennsylvania, South Carolina, Tennessee and Virginia. The Company has expanded its co-operative service offerings in Germany, and has contracts with four state lotteries. Scientific Games manufactures pre-paid phone cards in Europe, which entitle cellular phone users to a defined value of airtime. Prepaid phone cards offer consumers worldwide a way to purchase cellular airtime, without requiring phone companies to extend credit or consumers to commit to contracts.

The Company competes with Pollard Banknote Limited and GTECH Printing Corp.

Lottery Systems Group

The Company’s lottery business includes the supply of transaction-processing software that accommodates instant ticket accounting and validation, and online lottery games, point-of-sale terminals, central site computers and communication platforms, and on-going operational support and maintenance services. The Company also provides software, hardware and support for sports betting systems, video lottery systems and the operation of credit card processing systems for non-lottery customers.

As of December 31, 2008, the Company had contracts to operate online lottery systems for 15 United States jurisdictions, which operate online lotteries. It also has lottery systems operating in Argentina, Australia, Canada, China, Dominican Republic, France, Germany, Hungary, Iceland, Latvia, the Republic of Korea, Mexico, the Netherlands, Norway, Philippines, Spain, Sweden and Switzerland.

The Company competes with GTECH Printing Corp., Intralot Technologies, Inc., International Lottery and Totalizator Systems, Inc.

Diversified Gaming Group

The Company is a supplier of wide area gaming systems and terminals to licensed bookmakers in the United Kingdom and Austria. It provides bookmakers with an offering, which includes remote management of the game content and management information, wagering terminals, central computer system, data communications, and field support service. It develops game content in Austria and Australia, and contracts with other gaming suppliers for additional content. Global Draw operates approximately 12,200 terminals in the United Kingdom. In the United Kingdom digital AWP and SWP industry, it develops its own game content and contract with third-party game developers and game content providers. This game content is then programmed into digital gaming terminals that are manufactured for the Company by a third party, and then supplied as part of a digital gaming product offering, (which includes SWP terminals, digital jukeboxes and pool tables) to pubs.

The Company is a provider of high-volume, real-time transaction processing pari-mutuel wagering systems to licensed pari-mutuel operators. It provides its systems and services to horse and greyhound racetracks, off-track betting facilities (OTBs), casinos, jai alai frontons, telephone and Internet account wagering operators and other establishments where pari-mutuel wagering is permitted. In the United States, Germany and Ireland, the Company provides the equipment, software and maintenance services pursuant to long-term facilities management contracts that typically have a minimum term of five years, under which it is generally paid a fee equal to a percentage of the amount wagered on a particular event.

The Company’s Connecticut operations, with total wagers consist of 10 OTB facilities, including video simulcasting at three teletheaters and seven other branches, and telephone account wagering for customers in 11 states. It holds one OTB licenses within the state of Maine. It is also the licensed operator for all pari-mutuels wagering in the Netherlands, originating from four racetracks and 29 OTBs under a contract through June 2013.

Scientific Games competes with Inspired Gaming Group plc, Cyberview Technology, Inc., International Game Technology, Gamestec Leisure Limited, Inspired Gaming Group, Merit Industries, Inc., IGT International, Lottomatica, SpA, Bally Technologies Inc., Inspired Gaming Group, Cyberview Technology, Aristocrat Leisure Ltd, Novomatic Industries, AG, Octavian International, Multimedia Games, Inc., AmTote International, Inc., United Tote Company and Gemstar-TV Guide, Inc.