Scientific Games Reaches Agreement With California Horse Racing Board

NEW YORK, July 10 /PRNewswire-FirstCall/ — Scientific Games Racing, LLC (SGR), a wholly-owned subsidiary of Scientific Games , announced today an agreement with the California Horse Racing Board (CHRB) regarding the CHRB investigation of the software programming in the Quick-Pick software of SGR’s BetJet terminal — a terminal that was introduced for use in California beginning in July 2007.

The terms of the agreement include the following:

— SGR implemented its software enhancements on BetJets and non-BetJet terminals under the supervision of the CHRB in order to disable the Quick-Pick betting function until such time, if ever, Quick-Pick betting is allowed by the CHRB;

— SGR will reimburse the CHRB for the costs of the CHRB investigation into this matter;

— SGR will make equal voluntary payments to the California Retirement Management Account (CARMA), the Permanently Disabled Jockeys Fund and the California Thoroughbred Health Foundation to support backstretch working family health services;

— SGR will pay refunds to people who placed Quick-Pick bets at BetJet terminals in California between July 1, 2007 and May 17, 2008, as long as the person can establish through legitimate proof, including, but not limited to, a ticket stub, that they placed said bet. This commitment will extend until June 2, 2009;

— SGR will report every month for six months, and again on July 3, 2009, to the CHRB on the status of the implementation of the software enhancements to correct the BetJet programming error and consumer claims, if any. To further protect the wagering public, SGR shall also conduct a quality assurance review of its systems and confirm to the CHRB annually the integrity of its systems and that such systems are in good working order;

— No further administrative action arising from the foregoing facts will be taken by the CHRB against SGR or its affiliated companies, directors, officers or employees.

Richard B. Shapiro, Chairman of the CHRB, stated: “We have found no evidence of intentional misconduct in the programming glitch nor do we find any effort to conceal the error from the public. As SGR management became aware and involved, the Company cooperated with our review and helped bring this matter to closure. We are pleased that SGR will generously contribute to horseracing charities and believe this agreement is in the best interests of both consumers and racing in California.”

Kirk Breed, Executive Director of the CHRB, added: “While Quick-Pick is not a popular form of wagering, it is our responsibility to ensure both the public confidence in all forms of wagering allowed and that everyone has a fair chance to win or lose in all forms of regulated gaming.”

Brooks Pierce, President of SGR, stated: “We are grateful to the CHRB for working with us to help bring this matter to a close and we are confident in the integrity of our system.”

About Scientific Games

Scientific Games Corporation is the leading integrated supplier of instant tickets, systems and services to lotteries worldwide, a leading supplier of server based gaming machines and systems, Amusement and Skill with Prize betting terminals, interactive sports betting terminals and systems, and wagering systems and services to pari-mutuel operators. It is also a licensed pari-mutuel gaming operator in Connecticut, Maine and the Netherlands and is a leading supplier of prepaid phone cards to telephone companies. Scientific Games’ customers are in the United States and more than 60 other countries. For more information about Scientific Games, please visit our web site at

   Company Contact:   Investor Relation   Scientific Games Corporation   212-754-2233    Forward-Looking Statements  

Certain statements in this press release which are not historical facts, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements, including those relating to timing of contracts, renewals or other events, business plans and performance objectives, are based upon management’s current expectations, assumptions and estimates and are not guarantees of future results or performance. Actual results may differ materially from those projected in these statements due to a variety of risks and uncertainties and other factors, including, among other things: competition; material adverse changes in economic and industry conditions in our markets; technological change; protection of intellectual property; security and integrity of software and systems; laws and government regulation, including those relating to gaming licenses, permits and operations; seasonality; dependence on suppliers and manufacturers; factors associated with foreign operations; failure to retain, renew or perform on contracts; resolution of pending or future litigation; and other factors described from time to time in our filings with the SEC, including our most recent Annual Report on Form 10-K. Forward-looking statements speak only as of the date they are made, and except for our ongoing obligations under the U.S. federal securities laws, we undertake no obligation to publicly update any forward-looking statements whether as a result of new information, future events or otherwise.

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