Scientific Games Wins Mass., Extends Calif. Contract

5/15/2009 by Gaming Industry Media Staff

Scientific Games Corporation has secured a contract to be the Massachusetts State Lottery's primary instant ticket vendor and has extended its current contract with the California Lottery.

Scientific Games Corporation has secured a contract to be the Massachusetts State Lottery's primary instant ticket vendor and has extended its current contract with the California Lottery.

Announced on Friday, the California Lottery contract renewal keeps the lottery supplier as the primary instant ticket provider to 2013 -- extending its existing contract by four years.

Earlier this week, Scientific Games said that it has won a three-year deal with two one-year extension options to supply Massachusetts State Lottery with instant tickets.

"While (the deal was) not a surprise, we believe the result represents a distinct positive for SGMS and should help alleviate some investor concerns regarding competition," wrote Carlo Santarelli, an analyst with J.P. Morgan.

Last week the group posted a first quarter revenue decline of 10 percent year over year to $230.7 million, and it narrowed its net loss from $69.1 million in fourth quarter 2008 to $25.2 million.