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January/February 2016 // PUBLIC GAMING INTERNATIONAL //
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A Letter from Gavin Isaacs
Lottery generates hundreds of billions of dollars globally for education, healthcare, the elderly and other good causes. The
mission of Scientific Games is to help our lottery customers increase funds to support their good causes. That is the mission that
has driven everything we do, including the acquisitions of Bally, WMS and SHFL entertainment. In 2016, Scientific Games is
positioned to deliver more value than ever to our government-gaming clients.
I want to thank all of our customers for your confidence in our vision, and reaffirm our dedication to exceeding your expecta-
tions on every front. The last 12 months have been an incredibly energetic time for all of us at Scientific Games and our custom-
ers. The company’s integration is right on target and delivering benefits to our customers. The synergies on the operations and
infrastructure sides of the business are ahead of plan. This yields efficiencies that will enable us to focus even more on the real
objective, which is to empower our government-gaming clients with great games, great technologies and systems, and world-class
support. The repositioning of Scientific Games with the customer-facing brands of SG Gaming, SG Lottery and SG Interactive
demonstrates how the different components of the business are now integrated under one harmonious roof. This was showcased
last fall at G2E and at NASPL. Our commitment to our existing product lines, as well as to the R&D and innovation that drives
our ability to empower our customers with ongoing success, was all on full display at these conferences. The excitement level for
Scientific Games at both events was awesome—a really exciting kick-off for the last quarter of the year and launch into 2016.
The synergies accruing to the combined companies will benefit our customers in all the different gaming categories. The tech-
nologies and skill sets in Scientific Games’ Lottery business are being migrated across all gaming categories. The Bally and WMS
product brands have tremendous assets, such as content, product development and systems technologies that are now enhancing
our capabilities in lottery.
The key to building long-term sustainable success is investment. And we are investing more than ever in innovation and sales
performance—initiatives that will further empower our lottery customers.
We understand and appreciate that lotteries operate within many constraints. But the fundamental ROI in this industry is so
high that it should be just a matter of constructing tenders that free up capacity and that unlock the resources of the community
of commercial partners so that these resources can be applied to drive sales and net funding for good causes. If there was ever an
industry that was investment-driven, it’s lottery. The highest margins in the commercial world are Apple, Microsoft and Google.
They are all between 21 percent and 23 percent. These companies spend billions in R&D and billions more to test, launch, and
market innovation and new product concepts. Lotteries haven’t embraced R&D thus far. But lottery is a market-driven industry
that yields a higher ROI than these commercial companies. Net funding to good causes will benefit the entire industry as we work
together to unlock the reservoir of investment capital to drive lottery sales. It can and should be done.
I have learned so much over the last year-and-a half from the incredible lottery leadership team at Scientific Games. It has
been a pleasure working with and learning from team members like Jim Kennedy, John Schulz, Pat McHugh, Michael Conforti,
Simone Harrison, and many others whose knowledge of the industry and connection to our customers is truly an inspiration. It’s
also been truly enjoyable meeting and learning from our lottery customers around the world. It has given me an appreciation for
the incredible vision we have for the industry, and the drive we have to maximize funds for good causes and build a sustainable
long-term growth business. Lottery is so well-positioned to continue our success in the lottery marketplace, and Scientific Games
is dedicated to helping our customers make it happen.
Lottery products have fundamental and enduring appeal to the broadest cross-section of consumers in the lottery industry. Lot-
tery is well-known and trusted, and its network of retailers provides, by far, the broadest reach and consumer access to these great
products. We believe the main goal is to help lottery retailers drive the business, for the benefit of lottery and also for the benefit
of the retailers. The more lottery contributes to the success of its retailers, the more dedicated they will be to the success of lottery.
Enhancing the consumer connection with lottery, through digital and mobile initiatives, will benefit the entire lottery ecosystem.
There is tremendous potential to build upon the incredible success that lottery has established over the decades. Scientific Games
appreciates and is dedicated to helping lottery achieve its full potential.
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