Gambling equipment developer Scientific Games will continue to provide one of the nation’s largest state lotteries with instant games and associated service for another three years.
In a deal announced Tuesday, the Las Vegas-based company in the California State Lottery extended their agreement through November 2022 with optional extensions into 2025.
Financial terms were not disclosed.
John Schulz, Scientific Games senior vice president for lottery instant products, said in a statement the company values the deal with California.
“As the California Lottery’s profits grow responsibly, so does the collective impact our partnership has on public education in the state,” Schulz said.
Scientific Games has been the Golden State’s instant game supplier since lottery was launched in 1985. Under the current contract, instant game retail sales has grown in California from $3.06 billion in 2013 to $5.06 billion in 2018.
Since 1985, tax revenues from the California Lottery have contributed $34.2 billion to the state’s public schools.
#newsroom – Scientific Games extends contract with California Lottery for three years. –@howardstutz, CDC Gaming. https://t.co/DbSIfPU5T3 @ScientificGames @calottery #CDCgaming
— CDC Gaming (@CDCNewswire) December 11, 2019
According to La Fleur’s Almanac, California is the No. 3 instant game lottery in the world. Scientific Games provides the state with instant games and services, including product and player research, game design, game portfolio planning, integrated marketing programs and retailer account management.
Scientific Games launched the world’s first secure retail instant game in 1974 and the first digital instant game in the U.S. in 2014.
Shares of Scientific Games were down 24 cents or 0.87% on the Nasdaq Tuesday to close at $27.26. The company’s stock price was up less than 1% after the California contract extension was announced.
