This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Scientific Games Announces Its Joint Venture Selected To Provide Marketing And Sales Services To The New Jersey Lottery

Stocks in this article: SGMS

NEW YORK, April 15, 2013 /PRNewswire/ -- Scientific Games Corporation (Nasdaq: SGMS) today announced that the New Jersey Treasury Department has issued a notice of intent to award a contract to the Northstar New Jersey Lottery Group ("Northstar NJ") to provide marketing and sales services to the New Jersey Lottery. Northstar NJ is a joint venture comprised of Scientific Games International, Inc., GTECH Corporation, a subsidiary of Lottomatica Group S.p.A. (LTO.MI), and OSI LTT NJ Holdings Inc., an indirect subsidiary of OMERS Administration Corporation, the administrator of the Ontario Municipal Employees Retirement System pension funds (OMERS). A subsidiary of Scientific Games will own approximately 18% of the Northstar NJ joint venture. An entity comprised of GTECH and OSI will own approximately 82% of the Northstar NJ joint venture.

Northstar NJ will provide a wide range of specialized services to the Lottery that will focus on strengthening its marketing and sales functions and will include support for lottery game development, the procurement of related goods and services and marketing and advertising. All of these activities will be subject to control and oversight by the Lottery. The services agreement is expected to commence after a transition period and is expected to end on June 30, 2029.  

Under the terms of the contract, Northstar NJ will be entitled to receive incentive payments to the extent the Lottery's net income exceeds specified target levels, subject to a cap of 5% of the applicable year's net income.  Northstar NJ will be responsible for payments to the State to the extent the Lottery net income levels set forth in Northstar NJ's successful bid are not achieved, subject to a cap of 2% of the applicable year's net income and a $20 million shortfall payment credit.  Northstar NJ will also be required to make a $120 million payment to the State upon execution of the agreement.

Scientific Games and GTECH will provide Northstar NJ with instant lottery games, lottery systems and services along with a player loyalty and rewards program.  Under the terms of a separate joint venture arrangement between Scientific Games and GTECH and supply arrangements with Northstar NJ, Scientific Games will have a 30 percent economic interest (and be responsible for 30 percent of the capital requirements) associated with such supply arrangements.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,399.67 +19.26 0.12%
S&P 500 1,904.01 +17.25 0.91%
NASDAQ 4,316.0740 +57.6360 1.35%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs