Scientific Games Corporation

Scientific Games Corporation
Public
Traded as NASDAQ: SGMS
Industry Gaming
Predecessor Autotote
Founded 1973 (1973)[1]
Founder John Koza, Daniel Bower
Headquarters Enterprise, Nevada
Key people

Gavin Isaacs
(President and CEO)[2]

Ronald O. Perelman
(Chairman)[2]
Revenue Increase$1.786 billion USD (2014)
Increase$2.2 million USD (2014)
Decrease-$234 million USD (2014)
Total assets $9.995 billion USD (2014)
Total equity $3.9 billion USD (2014)
Subsidiaries WMS Industries
Website scientificgames.com

Scientific Games Corporation is an American company that provides gambling products and services to lottery and gaming organizations worldwide. The company is headquartered in Enterprise, Nevada.[3] Products include instant lottery games, lottery gaming systems, terminals and services, internet applications, server-based interactive gaming terminals, and gaming control systems.

Scientific Games introduced the first secure, instant lottery ticket in 1974.[1] Through high-security techniques including complex algorithms, printing treatments, encryption and firewalls, Scientific Games ensures that no one knows where a winning ticket is. They provide lottery retailers with secure point-of-sale systems that print Mega Millions and Powerball tickets. Over the last ten years, Scientific Games has added loyalty and reward websites, where players can earn points and prizes on non-winning tickets bought at retail.[4]

In 2012, global lottery revenues totaled $262 billion.[5] In 2011, U.S. lottery revenues totaled $56 billion with approximately 30% of total revenues directed to government transfers. There are currently 44 states and territories in the U.S. that offer government-operated lotteries.[6]

History

Two leading totalizator companies were combined in 1989 when United Tote purchased Autotote Systems, Inc. from Thomas H. Lee[7][8] Before the companies' operations could be integrated, the merger was challenged by federal antitrust regulators.[7] A 1991 court ruling forced the company to split back up. The former United Tote assets were sold back to that company's founders, the Shelhamer family, and what remained of the company was renamed as Autotote Corporation.[7][9]

In 2000, Autotote Corp. bought Scientific Games Holdings Corp., the leading maker of instant lottery equipment, for $308 million.[10][11] Scientific Games had been founded in 1973, and introduced the first secure instant lottery ticket in 1974.[1] The combined company changed its name from Autotote to Scientific Games Corporation in 2001.[12]

By 2002, two thirds of the entire $20 billion annually wagered on racing in North America was tracked by Autotote computers. [13] Autotote supplied pari-mutuel wagering systems worldwide. These were automated, computerized off-track and on-track systems for betting on horse races and greyhound racing. It was an integrated system for off-track betting, keeping track of race results and winning tickets, and race simulcasting.

In 2006, Scientific Games acquired The Global Draw, which provides server-based gaming machines to betting shops in the U.K. The Company has added to its position in the U.K. by acquiring Games Media, specializing in server-based, digital gaming and entertainment solutions to U.K. pubs, in 2007 and Barcrest from IGT in 2010. Barcrest develops slot machines and game content for casinos in the U.K. and other European markets.[14]

In 2007, the New York Times credited Scientific Games and Gtech for transforming what was known “historically [as] an underground operation run by mobsters” into “a lucrative, state-sponsored corporate enterprise.”[1]

The Autotote racing division was sold to Sportech PLC in 2010.[15]

In October 2013, the company bought WMS Industries, the third largest manufacturer of slot machines, for $1.5 billion.[16]

On June 10, 2014, the company appointed Gavin Isaacs President and CEO. [17]

In September 2014, Scientific Games Corporation extended their deal with the Slovakian national lottery, TIPOS a.s., for another 4 years.[18]

In November 2014, Scientific Games acquired slot machine maker Bally Technologies for $3.3 billion plus $1.8 billion in assumed debt.[19]

Subsidiaries

Wholly owned subsidiaries of Scientific Games Corporation:[20]

Along with its own operations, Scientific Games owns significant stakes in the following companies:[21]

Controversy

The security of Autotote software for the racing industry garnered media attention in 2002 when one of their software developers attempted to steal $3 million through a hole in their software and processes described as "... an example of a very simple exploitation of a rather stupid design flaw." [13] The role of Autotote's software in the 2002 Breeders' Cup betting scandal caused the National Thoroughbred Racing Association to take swift action in the face of a growing outcry once the nature of the scam emerged. It required all tote companies to modify their software to allow bets to be forwarded immediately after a race closed.[22] The Autotote racing division was sold to Sportech PLC in 2010.[15]

In December 2008, then CEO A. Lorne Weil’s son Luke Weil[23][24] was employed as Director, International Business Development.[25]

See also

References

  1. 1 2 3 4 "Divide and Conquer: Meet the Lottery Titans". Retrieved 2007-10-21.
  2. 1 2 "David L. Kennedy Appointed as President and Chief Executive Officer of Scientific Games". marketwatch.com. 19 November 2013. Retrieved 20 November 2013.
  3. ↑ http://www.scientificgames.com/investors/. Missing or empty |title= (help)
  4. ↑ "A Dollar and a Dream". Retrieved 2012-04-07.
  5. ↑ "La Fleur’s 2012 World Lottery Almanac". Retrieved 2013-01-01.
  6. ↑ "Lottery Sales Rise to Record as Cash-Hungry States Search for More Revenue". Retrieved 2011-11-13.
  7. 1 2 3 Phyllis Berman (November 9, 1992). "Home on the range". Forbes.  – via HighBeam Business (subscription required)
  8. ↑ U.S. v. United Tote, Inc., 768 F.Supp. 1064 (D. Del. 1991).
  9. ↑ Form 10-K: Annual Report (Report). Autotote Corporation. January 26, 1996. Retrieved 2015-03-11 – via EDGAR.
  10. ↑ "Autotote completes acquisition of Scientific Games" (Press release). Autotote Corp. September 6, 2000. Retrieved 2012-06-01.
  11. ↑ "Autotote purchase of Scientific Games is set for $310 million". Wall Street Journal (via ProQuest). May 19, 2000. Retrieved 2012-06-01. (subscription required)
  12. ↑ Form 8-K: Current Report (Report). Scientific Games Corp. April 30, 2001. Retrieved 2015-03-11 – via EDGAR.
  13. 1 2 Barrett, Larry (2002-12-01). "How Autotote Insider Rigged the System". Ziff-Davis Media. Retrieved 2012-02-18.
  14. ↑ "IGT sells British-based slot machine developer". Retrieved 2011-04-27.
  15. 1 2 Nowak, Dan (2010-10-07). "Sports Haven/Autotote has new owner". New Haven Register. Retrieved 2012-02-18.
  16. ↑ "Scientific Games completes acquisition of WMS" (Press release). Scientific Games. October 18, 2013. Retrieved 2015-03-10 – via PR Newswire.
  17. ↑ http://www.prnewswire.com/news-releases/gavin-isaacs-named-ceo-at-scientific-games-corporation-262509421.html
  18. ↑ "Scientific Games and Slovakian Lottery Contract Extended". latestbingobonuses.com. 11 September 2014.
  19. ↑ Howard Stutz (November 21, 2014). "Scientific Games completes $5.1 billion acquisition of Bally". Las Vegas Review-Journal. Retrieved 2015-03-09.
  20. ↑ "Form 10-K". Retrieved 2011-12-31.
  21. ↑ "Can Recent Lottery Jackpots Power Scientific Games To First Quarter Earnings Beat?". Retrieved 2012-04-10.
  22. ↑ Finley, Bill (2002-11-09). "Betting Inquiry Will Include F.B.I.". New York Times. Retrieved Feb 18, 2012.
  23. ↑ Weil, Luke. "Luke Weil Info Page". lukeweil.info. lukeweil.info.
  24. ↑ Weil, Luke. "Luke Weil". lweil.com. Luke Weil.
  25. ↑ "SCIENTIFIC GAMES CORP - FORM 8-K - December 3, 2010". Washington, D.C. 20549: UNITED STATES SECURITIES AND EXCHANGE COMMISSION. December 3, 2010. Retrieved 19 Feb 2012.

External links

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