Scientific Games Announces Lotterie Nazionali Joint Venture, Accepts Nine-Year Extension for the Italian Scratch and Win Concession
LAS VEGAS and ATLANTA – December 4, 2017 – Scientific Games Corporation (NASDAQ:SGMS) today announced that Lotterie Nazionali S.r.l., a joint venture, the exclusive manager of Gratta e Vinci, the Italian Scratch and Win concession owned by Scientific Games, IGT subsidiary Lottomatica Holding, and Arianna 2001, has accepted a nine-year contract extension for the Italian Scratch and Win concession.
The acceptance follows a communication received from the Italian regulator Agenzia delle Dogane e dei Monopoli regarding the extension of the Italian Scratch & Win concession through September 30, 2028, in application of the Law Decree n. 148/2017 recently converted into law.
Lotterie Nazionali S.r.l. is required to pay an upfront fee of €800 million in three installments. The first installment of €50 million will be paid by December 15, 2017; payments of the second installment of €300 million and third installment of €450 million are expected to be made in April 2018 and October 2018, respectively. The payments are expected to be funded by the joint venture partners and pro-rated based on their respective ownership percentage. All other conditions will be the same as the original concession.
Scientific Games owns a 20 percent interest in Lotterie Nazionali S.r.l., the world’s largest instant ticket lottery, and continues to serve as the primary instant game provider for the term of the extension.