In 2002, US gaming technology giant Scientific Games (SG) secured a lucrative contract with the South Carolina Lottery (SC Lottery) – one of many similar contracts throughout the country – that has endured until today. It now appears that the company is safe for a while in the state, as the Lottery has agreed to extend (in pdf) the longtime partnership for another six years. SG will also soon be introducing a mobile app to consumers as part of the renewed agreement.
As is the case with virtually all lotteries across the country, the SC Lottery uses the bulk of its revenue to fund education programs. In many cases, state education programs are funded primarily by the lotteries, with only minimal amounts being provided by other sources. This is why any attempt to force states to call off their lotteries is an extremely bad and misguided idea. Last year, $487.6 million was given by the SC Lottery to education programs, a huge chunk that, if removed, would have a seriously negative impact on the proficiency level of tomorrow’s leaders.
With the renewal of the SG arrangement, the SC Lottery appears to be ready to ignore the nonsensical suggestion that lotteries need to be put on hold, and will introduce even more products to state residents. SG will introduce new warehousing and distribution services through a state-of-the-art facility, as well as a next-generation lottery mobile application. The entities executive director, Hogan Brown, says of the partnership extension, “We have accomplished great results over the past 18 years, working with Scientific Games as our primary instant games provider. Continuing the Scientific Games Enhanced Partnership program, a partnership proven highly successful, will strengthen our ability to responsibly optimize revenue for education in South Carolina.”
SG has had a successful run in South Carolina so far, helping the SC Lottery increase its sales 10.6% since 2014. The company references a report in La Fleur’s Almanac, which indicates that this is the highest percentage of annual growth for any top-10 instant game lotteries in the world. SG Senior VP, Lottery Instant Products John Schulz adds, “We are honored by the trust the South Carolina Education Lottery has placed in Scientific Games to fully manage their diverse instant game portfolio. Beginning and ending with analytics and insights, our SGEP [Scientific Games Enhanced Partnership] program encompasses every aspect of the Lottery’s instant products – from game design through retail execution.”
SG is confident that it can overcome the adversity caused by the coronavirus pandemic without too much difficulty. It is financially stable, and deals like this one with the SC Lottery continue to appear. To help with its growth, the company announced yesterday that it has hired a new Chief Product Officer (CPO), Rich Schneider. He was previously the CPO with Aristocrat and has held several leadership roles with gaming companies during his 30-year career in the industry. With SG, he will be in charge of product strategy, R&D roadmaps and other activity.
