U.S. Based Scientific Games Partners with Twin River to Bring World Class Performance to Possible Rhode Island Lottery Contract Bid
PROVIDENCE, RHODE ISLAND, OCTOBER 22, 2019: Twin River Worldwide Holdings, Inc., (NYSE:TRWH) announced today that Scientific Games (NASDAQ:SGMS), a global leader in the gaming and lotteries industries, has joined their partnership which seeks a public bid process for the Rhode Island lottery contract currently held by IGT. The State is considering a 20-year, no-bid billion dollar extension to the IGT contract which expires in 2023.
Scientific Games brings industry leading performance to 150 lotteries across 50 countries, and operates lottery services in 44 states. It is the only full-service lottery company headquartered in the United States, providing lottery draw, instant, internet, mobile, video lottery and sports wagering solutions worldwide. Scientific Games is a premier lottery instant game provider with more than 70 percent share of all US instant game sales, and is the primary instant game supplier for 9 of the top 10 performing U.S. lotteries.
Scientific Games will offer its full suite of lottery services to the TRWH consortium that includes Camelot Lottery Solutions and Intralot, as previously announced. Specific lottery services provided by Scientific Games and the consortium members will be tailored to the details of the bid issued by Rhode Island.
According to Marc Crisafulli, Executive Vice President of TRWH, the addition of Scientific Games strengthens an already formidable partnership of gaming and technology companies hoping to compete for the state lottery contract. “Today’s announcement that Scientific Games has joined Twin River is further proof that there is significant interest in bidding for Rhode Island’s lottery and gaming business, with virtually the entire global lottery industry now confirming that they will participate if an open competitive bidding process develops in Rhode Island. We believe this is ultimately very good news for the Rhode Island taxpayers. We look forward to continuing our conversation with members of the General Assembly about the efficacy of a public bid process, the extraordinary savings to the State that likely could be realized when competition enters the marketplace and how we can collaboratively protect and enhance the State’s third largest source of revenue.”
Crisafulli noted “The lottery programs managed by Scientific Games in New England states far outperform IGT’s Rhode Island lottery programs. IGT’s Instant Game program in Rhode Island is performing 75% lower sales averages than the national weekly per capita sales average. Among a peer group of U.S. lotteries of similar size, Rhode Island has the lowest growth rate for revenue over the past eight years, and the lowest growth rate for draw games for the last decade.”
He continued, “Scientific Games is well known to us. Their machines in our two Rhode Island facilities outperformed IGT-controlled machines by over 50% last year, delivering on average over $31,000 more per machine to the State of Rhode Island taxpayers. They have a successful track record of understanding player preferences and delivering products that exceed customer expectations. The New England gaming market has become increasingly competitive, and the addition of Scientific Games to our team is an important part of enhancing our ability to compete and deliver positive results for Rhode Island.”
Patrick McHugh, Executive Vice President and Group Chief Executive, Lottery, said, “As the only full-service lottery provider headquartered in the United States, Scientific Games is very excited about bringing our global leadership in lottery and gaming products to Rhode Island in a more meaningful way. We are confident that our products will improve the performance of Rhode Island Lottery programs and create millions of dollars in new revenue for the State. We are pleased to formalize our commitment to bidding with the Twin River/Camelot consortium. There are tremendous synergies created by our companies coming together to deliver a competitive package that seeks to increase Lottery sales and profits for Rhode Island.” He continued, “Scientific Games values the trust our 150 lottery customers have placed in us throughout 50 countries worldwide and look forward to helping make Rhode Island the leading lottery performer it should be.”
The Twin River consortium proposal thus far includes:
- Commitment of 1,100 jobs created in Rhode Island backed up by a $100 million guarantee to the State if the jobs commitment falls short;
- Investment in best of breed lottery and gaming products to maximize sales and profits;
- A 12-year contract with an approximate cost to the State of [Rhode Island of] less than $500 million dollars versus the current IGT contract [that carries with it] over $1 billion dollars in costs to the State [of Rhode Island], and if the State prefers a 20 year contract an upfront payment of $75 million, $50 million more than IGT for the same contract term;
-The development or construction of a new corporate headquarters in Rhode Island of approximately 50,000 square feet.
-The expenditure of $50 million at Twin River to include new amenities and facility upgrades as part of the overall commitment to invest $150 million.
Scientific Games Corporation (NASDAQ: SGMS) is a world leader in entertainment offering dynamic games, systems and services for casino, lottery, social gaming, online gaming and sports betting. Scientific Games offers the gaming industry's broadest and most integrated portfolio of game content, advanced systems, cutting-edge platforms and professional services. In business for more than 85 years through its acquired companies, Scientific Games offers customers a fully integrated portfolio of technology platforms, robust systems, engaging game content, and unrivaled professional services and marketing solutions. The company is headquartered in Las Vegas, Nevada with approximately 9,500 employees worldwide, serving customers on six continents. For more information, visit scientificgames.com
Twin River Worldwide Holdings, Inc., or TRWH, owns and manages four casinos; two casinos in Rhode Island, one in Mississippi, and one in Delaware, as well as a Colorado horse race track that has 13 authorized OTB licenses. Properties include Twin River Casino Hotel (Lincoln, RI), Tiverton Casino Hotel (Tiverton, RI), Hard Rock Hotel & Casino (Biloxi, MS), Dover Downs Hotel & Casino (Dover, DE) and Arapahoe Park racetrack (Aurora, CO). Its casinos range in size from 1,000 slots and 32 table games facilities to properties with over 4,100 slots, approximately 125 table games, and 48 stadium gaming positions, along with hotel and resort amenities. Its shares are traded on the New York Stock Exchange under the ticker symbol “TRWH.” For more information, visit twinriverwwholdings.com
Forward-Looking Statements
This communication contains “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. All statements, other than historical facts, including future financial and operating results and Twin River’s plans, objectives, expectations and intentions, legal, economic and regulatory conditions and any assumptions underlying any of the foregoing, are forward-looking statements.
Forward-looking statements are sometimes identified by words like "may," "will," "should," "potential," "intend," "expect," "endeavor," "seek," "anticipate," estimate," "overestimate," "underestimate," "believe," "could," "project," "predict," "continue," "target" or other similar words or expressions. Forward-looking statements are based upon current plans, estimates and expectations that are subject to risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. The inclusion of such statements should not be regarded as a representation that such plans, estimates or expectations will be achieved. Important factors that could cause actual results to differ materially from such plans, estimates or expectations include, among others, (1) the ability of the consortium that is being formed by Twin River, Camelot Lottery Solutions, Scientific Games and Intralot to reach agreement on the final terms of any partnership among them related to the possible servicing of the Rhode Island lottery contract; (2) the willingness of the State of Rhode Island to open up the bid process for the Rhode Island lottery contract and Twin River’s and its consortium partners ability to reach agreement on the terms of any bid; (3) the ability of the partners in the consortium, including Twin River, to deliver on their commitments being made as part of the consortium’s proposal to bid on the Rhode Island lottery contract, including, in the case of Twin River, its commitment related to the creation of jobs and enhancements at its Rhode Island properties;(4) the risk of negative regulatory reaction or publicity to Twin River’s and its other partners’ proposed bid for the Rhode Island lottery contract; (5) the costs associated with performing Twin River’s obligations under the joint venture; (6) the possibility of disputes arising between Twin River and the other partners in its consortium that could result in losses to Twin River or disputes with its other partners, including those with whom Twin River may have other contractual relationships; (7) changes in general economic and/or industry specific conditions; (8) actions by third parties, including government agencies; (9) the risk that the Company’s proposed acquisitions may not be completed on the terms or in the time frame expected, or at all; (10) unexpected costs, charges or expenses resulting from Twin River’s proposed partnership with the other partners in its consortium; and (11) other risk factors as detailed under Part I. Item 1A. “Risk Factors” of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018 as filed with the Securities and Exchange Commission on April 1, 2019. The foregoing list of important factors is not exclusive
Any forward-looking statements speak only as of the date of this communication. Twin River does not undertake any obligation to update any forward-looking statements, whether as a result of new information or development, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on any of these forward-looking statements
Scientific Games brings industry leading performance to 150 lotteries across 50 countries, and operates lottery services in 44 states. It is the only full-service lottery company headquartered in the United States, providing lottery draw, instant, internet, mobile, video lottery and sports wagering solutions worldwide. Scientific Games is a premier lottery instant game provider with more than 70 percent share of all US instant game sales, and is the primary instant game supplier for 9 of the top 10 performing U.S. lotteries.
Scientific Games will offer its full suite of lottery services to the TRWH consortium that includes Camelot Lottery Solutions and Intralot, as previously announced. Specific lottery services provided by Scientific Games and the consortium members will be tailored to the details of the bid issued by Rhode Island.
According to Marc Crisafulli, Executive Vice President of TRWH, the addition of Scientific Games strengthens an already formidable partnership of gaming and technology companies hoping to compete for the state lottery contract. “Today’s announcement that Scientific Games has joined Twin River is further proof that there is significant interest in bidding for Rhode Island’s lottery and gaming business, with virtually the entire global lottery industry now confirming that they will participate if an open competitive bidding process develops in Rhode Island. We believe this is ultimately very good news for the Rhode Island taxpayers. We look forward to continuing our conversation with members of the General Assembly about the efficacy of a public bid process, the extraordinary savings to the State that likely could be realized when competition enters the marketplace and how we can collaboratively protect and enhance the State’s third largest source of revenue.”
Crisafulli noted “The lottery programs managed by Scientific Games in New England states far outperform IGT’s Rhode Island lottery programs. IGT’s Instant Game program in Rhode Island is performing 75% lower sales averages than the national weekly per capita sales average. Among a peer group of U.S. lotteries of similar size, Rhode Island has the lowest growth rate for revenue over the past eight years, and the lowest growth rate for draw games for the last decade.”
He continued, “Scientific Games is well known to us. Their machines in our two Rhode Island facilities outperformed IGT-controlled machines by over 50% last year, delivering on average over $31,000 more per machine to the State of Rhode Island taxpayers. They have a successful track record of understanding player preferences and delivering products that exceed customer expectations. The New England gaming market has become increasingly competitive, and the addition of Scientific Games to our team is an important part of enhancing our ability to compete and deliver positive results for Rhode Island.”
Patrick McHugh, Executive Vice President and Group Chief Executive, Lottery, said, “As the only full-service lottery provider headquartered in the United States, Scientific Games is very excited about bringing our global leadership in lottery and gaming products to Rhode Island in a more meaningful way. We are confident that our products will improve the performance of Rhode Island Lottery programs and create millions of dollars in new revenue for the State. We are pleased to formalize our commitment to bidding with the Twin River/Camelot consortium. There are tremendous synergies created by our companies coming together to deliver a competitive package that seeks to increase Lottery sales and profits for Rhode Island.” He continued, “Scientific Games values the trust our 150 lottery customers have placed in us throughout 50 countries worldwide and look forward to helping make Rhode Island the leading lottery performer it should be.”
The Twin River consortium proposal thus far includes:
- Commitment of 1,100 jobs created in Rhode Island backed up by a $100 million guarantee to the State if the jobs commitment falls short;
- Investment in best of breed lottery and gaming products to maximize sales and profits;
- A 12-year contract with an approximate cost to the State of [Rhode Island of] less than $500 million dollars versus the current IGT contract [that carries with it] over $1 billion dollars in costs to the State [of Rhode Island], and if the State prefers a 20 year contract an upfront payment of $75 million, $50 million more than IGT for the same contract term;
-The development or construction of a new corporate headquarters in Rhode Island of approximately 50,000 square feet.
-The expenditure of $50 million at Twin River to include new amenities and facility upgrades as part of the overall commitment to invest $150 million.
Scientific Games Corporation (NASDAQ: SGMS) is a world leader in entertainment offering dynamic games, systems and services for casino, lottery, social gaming, online gaming and sports betting. Scientific Games offers the gaming industry's broadest and most integrated portfolio of game content, advanced systems, cutting-edge platforms and professional services. In business for more than 85 years through its acquired companies, Scientific Games offers customers a fully integrated portfolio of technology platforms, robust systems, engaging game content, and unrivaled professional services and marketing solutions. The company is headquartered in Las Vegas, Nevada with approximately 9,500 employees worldwide, serving customers on six continents. For more information, visit scientificgames.com
Twin River Worldwide Holdings, Inc., or TRWH, owns and manages four casinos; two casinos in Rhode Island, one in Mississippi, and one in Delaware, as well as a Colorado horse race track that has 13 authorized OTB licenses. Properties include Twin River Casino Hotel (Lincoln, RI), Tiverton Casino Hotel (Tiverton, RI), Hard Rock Hotel & Casino (Biloxi, MS), Dover Downs Hotel & Casino (Dover, DE) and Arapahoe Park racetrack (Aurora, CO). Its casinos range in size from 1,000 slots and 32 table games facilities to properties with over 4,100 slots, approximately 125 table games, and 48 stadium gaming positions, along with hotel and resort amenities. Its shares are traded on the New York Stock Exchange under the ticker symbol “TRWH.” For more information, visit twinriverwwholdings.com
Forward-Looking Statements
This communication contains “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. All statements, other than historical facts, including future financial and operating results and Twin River’s plans, objectives, expectations and intentions, legal, economic and regulatory conditions and any assumptions underlying any of the foregoing, are forward-looking statements.
Forward-looking statements are sometimes identified by words like "may," "will," "should," "potential," "intend," "expect," "endeavor," "seek," "anticipate," estimate," "overestimate," "underestimate," "believe," "could," "project," "predict," "continue," "target" or other similar words or expressions. Forward-looking statements are based upon current plans, estimates and expectations that are subject to risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. The inclusion of such statements should not be regarded as a representation that such plans, estimates or expectations will be achieved. Important factors that could cause actual results to differ materially from such plans, estimates or expectations include, among others, (1) the ability of the consortium that is being formed by Twin River, Camelot Lottery Solutions, Scientific Games and Intralot to reach agreement on the final terms of any partnership among them related to the possible servicing of the Rhode Island lottery contract; (2) the willingness of the State of Rhode Island to open up the bid process for the Rhode Island lottery contract and Twin River’s and its consortium partners ability to reach agreement on the terms of any bid; (3) the ability of the partners in the consortium, including Twin River, to deliver on their commitments being made as part of the consortium’s proposal to bid on the Rhode Island lottery contract, including, in the case of Twin River, its commitment related to the creation of jobs and enhancements at its Rhode Island properties;(4) the risk of negative regulatory reaction or publicity to Twin River’s and its other partners’ proposed bid for the Rhode Island lottery contract; (5) the costs associated with performing Twin River’s obligations under the joint venture; (6) the possibility of disputes arising between Twin River and the other partners in its consortium that could result in losses to Twin River or disputes with its other partners, including those with whom Twin River may have other contractual relationships; (7) changes in general economic and/or industry specific conditions; (8) actions by third parties, including government agencies; (9) the risk that the Company’s proposed acquisitions may not be completed on the terms or in the time frame expected, or at all; (10) unexpected costs, charges or expenses resulting from Twin River’s proposed partnership with the other partners in its consortium; and (11) other risk factors as detailed under Part I. Item 1A. “Risk Factors” of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018 as filed with the Securities and Exchange Commission on April 1, 2019. The foregoing list of important factors is not exclusive
Any forward-looking statements speak only as of the date of this communication. Twin River does not undertake any obligation to update any forward-looking statements, whether as a result of new information or development, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on any of these forward-looking statements
