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Scientific Games Inks South Carolina Education Lottery Deal
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Scientific Games , which has produced all of South Carolina Education Lottery’s (also known as the Lottery) games for 18 years, recently expanded its instant games association with the latter. The new six-year contract will require Scientific Games to maximize profits for educational programs in South Carolina by leveraging the Scientific Games Enhanced Partnership (SGEP) program.
Notably, Scientific Games has helped the South Carolina Education Lottery to gain the third position in the worldwide instant game lottery space, per La Fleur's Almanac, FY2019 per capita sales. Besides, the company has boosted the Lottery’s instant game sales by 10.6%.
Per the contract, Scientific Games will fully manage the Lottery’s diverse portfolio of the United States’ top-performing $10 instant games.
The new contract, which may be extended for another year, includes warehousing, distribution, a lottery mobile app and other services to be provided by the company to the Lottery.
Markedly, instant games are a key part of South Carolina’s education system, representing about $4 billion in Lottery contributions to the state’s education.
Scientific Games is benefiting from new lottery and gaming contract wins, and international expansions. In fourth-quarter 2019, lottery revenues (27% of revenues) increased 0.9% year over year to $233 million. Increased sales of the company’s hardware solutions, primarily in international markets, drove the top line.
Notably, the contract with South Carolina Education Lottery comes in close heels with its recent deal with the Connecticut Lottery Corporation, a Las Vegas-based provider of content and technology for the gambling industry. Last week, the company received a five-year contract extension to serve as the state lottery's primary instant game provider, which plans to implement the new gaming system in the summer of 2021.
Scientific Games was the first to launch a secure retail instant game in 1974. It currently works with more than 150 lotteries worldwide to supply games, technology or services.
Notably, last week, the company announced a 10-year contract for a new statewide gaming system to serve the Iowa Lottery and its 2,400 retail locations.
The company also inked a new four-year systems technology deal with long-time partner Staatliche Lotterieverwaltung (LOTTO Bayern), the state lottery of Bavaria in Munich, Germany.
Per the latest agreement, LOTTO Bayern’s existing central gaming system will shift to Scientific Games’ advanced, new SYMPHONY technology by the next year.
Additionally, the company stretched its relationship with Nederlandse Loterij (NLO) to power new digital sports betting solutions in the Netherlands, ahead of the country’s liberalized online gambling market launch in 2021.
In December, the company inked a three-year contract extension with the California State Lottery, under which Scientific Games will continue to provide its services to the California Lottery till November 2022, with optional extensions through 2025.
Moreover, in October, the Florida Lottery selected the company as its primary instant games provider through 2027.
Zacks Rank & Other Stocks to Consider
Scientific Games currently has a Zacks Rank #2 (Buy).
Long-term earnings growth rate for Zoom, Pixelworks and Avid is currently pegged at 26.56%, 20% and 20%, respectively.
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Scientific Games Inks South Carolina Education Lottery Deal
Scientific Games , which has produced all of South Carolina Education Lottery’s (also known as the Lottery) games for 18 years, recently expanded its instant games association with the latter. The new six-year contract will require Scientific Games to maximize profits for educational programs in South Carolina by leveraging the Scientific Games Enhanced Partnership (SGEP) program.
Notably, Scientific Games has helped the South Carolina Education Lottery to gain the third position in the worldwide instant game lottery space, per La Fleur's Almanac, FY2019 per capita sales. Besides, the company has boosted the Lottery’s instant game sales by 10.6%.
Per the contract, Scientific Games will fully manage the Lottery’s diverse portfolio of the United States’ top-performing $10 instant games.
The new contract, which may be extended for another year, includes warehousing, distribution, a lottery mobile app and other services to be provided by the company to the Lottery.
Markedly, instant games are a key part of South Carolina’s education system, representing about $4 billion in Lottery contributions to the state’s education.
Scientific Games is benefiting from new lottery and gaming contract wins, and international expansions. In fourth-quarter 2019, lottery revenues (27% of revenues) increased 0.9% year over year to $233 million. Increased sales of the company’s hardware solutions, primarily in international markets, drove the top line.
Notably, the contract with South Carolina Education Lottery comes in close heels with its recent deal with the Connecticut Lottery Corporation, a Las Vegas-based provider of content and technology for the gambling industry. Last week, the company received a five-year contract extension to serve as the state lottery's primary instant game provider, which plans to implement the new gaming system in the summer of 2021.
Scientific Games Corp Price and Consensus
Scientific Games Corp price-consensus-chart | Scientific Games Corp Quote
Growing Lottery Footprint Bodes Well
Scientific Games was the first to launch a secure retail instant game in 1974. It currently works with more than 150 lotteries worldwide to supply games, technology or services.
Notably, last week, the company announced a 10-year contract for a new statewide gaming system to serve the Iowa Lottery and its 2,400 retail locations.
The company also inked a new four-year systems technology deal with long-time partner Staatliche Lotterieverwaltung (LOTTO Bayern), the state lottery of Bavaria in Munich, Germany.
Per the latest agreement, LOTTO Bayern’s existing central gaming system will shift to Scientific Games’ advanced, new SYMPHONY technology by the next year.
Additionally, the company stretched its relationship with Nederlandse Loterij (NLO) to power new digital sports betting solutions in the Netherlands, ahead of the country’s liberalized online gambling market launch in 2021.
In December, the company inked a three-year contract extension with the California State Lottery, under which Scientific Games will continue to provide its services to the California Lottery till November 2022, with optional extensions through 2025.
Moreover, in October, the Florida Lottery selected the company as its primary instant games provider through 2027.
Zacks Rank & Other Stocks to Consider
Scientific Games currently has a Zacks Rank #2 (Buy).
A few other top-ranked stocks in the broader technology sector are Zoom Video Communications, Inc. (ZM - Free Report) , Pixelworks, Inc. (PXLW - Free Report) and Avid Technology, Inc. , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Zoom, Pixelworks and Avid is currently pegged at 26.56%, 20% and 20%, respectively.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>