Scientific
Games Signs German Contract
Scientific Games announced today
that its German subsidiary Scientific Games
Honsel GmbH was awarded a contract with Lotterie-Treuhandgesellschaft
mbH Hessen, the state lottery of Hessen, based
in Wiesbaden, to supply instant lottery tickets
and other lottery services.
The contract
begins February 1, 2006, and will run for five
years, with options to extend for additional
two-year increments. Scientific Games Honsel
will handle the manufacturing and distribution
of instant tickets throughout Hessen, including
shipping, warehousing, telemarketing, retailer
recruitment and will advise on game design and
marketing issues. Revenues to Scientific Games
Honsel will be based on a percentage of sales.
Hessen has a population of 6 million, about
the same as the U.S. State of Indiana, and approximately
8 percent of the population of Germany.
"We
see strong potential growth throughout Hessen
for instant ticket sales," said Scientific
Games Chairman and CEO Lorne Weil. "We
are also executing on our strategy to expand
the range of services we provide, and bring
our best practices to German lotteries."
According
to Weil, instant tickets account for only 1%
of lottery sales in Hessen, a euro 650 million
lottery market. This is a sharp contrast to
the American market, where instants provide
more than half of total sales. European per
capita instant sales are also significantly
higher in the UK, Italy and France, where Scientific
Games is also the primary instant ticket supplier.
"Scientific
Games is an industry leader with impressive
European lottery experience," said Dr.
Heinz-Georg Sundermann, Managing Director of
Lotterie-Treuhandgesellschaft mbH Hessen. "We
see great potential sales growth here, and the
ability to return more funds to the public we
serve."
"We
have had a close relationship with Lotterie-Treuhandgesellschaft
mbH Hessen for many years which is strengthened
again by this agreement. We look forward to
growing instant ticket sales at a faster rate
with these new services," said Dr. Jan
Honsel, Managing Director of Scientific Games
Honsel.
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