Scientific Games Lands California Contract

(edited news release)
Scientific Games has been awarded the contract to provide pari-mutuel wagering equipment and services for the California Horse Racing Industry, the company announced Aug. 14.

The contract, awarded through a competitive procurement process, will run for five years in the initial term, with one potential three-year extension and two potential one-year extensions. It is expected to generate approximately $41.7 million in revenue over the initial term. The CHRI oversees 16 racetrack associations throughout the state, including all Thoroughbred racing venues, harness tracks, and racing fairs, as well as a network of off-track wagering facilities.

Scientific Games will operate the California system from the West Coast Quantum Data Center in Sacramento, Calif., with hot stand-by for redundancy and disaster recovery provided from the Quantum Data Center East in New Jersey. The QDC are the first of their kind in the racing industry, offering enterprise-level computing, standards and best practices in facilities designed to support pari-mutuel wagering.

Scientific Games will install 3,865 new BetJet terminals as well as hand-held wireless wagering devices. All of the California operations will be migrated to the QDC by the fourth quarter of 2007.

Scientific Games’ latest generation series of devices features wagering services at the point of sale, including handicapping tools and banking network integration, along with an intuitive user interface.

“California is one of our most important racing customers, and we are thrilled that they have awarded us this new contract,” said Lorne Weil, chairman and CEO of Scientific Games. “We believe the upgrade to our Quantum Data Centers along with our new BetJet terminals will improve the patron experience at every California track and help to grow handle in this extremely competitive gaming marketplace.”

“We were seeking a technical partner with a demonstrated record of innovation and flexibility as well as the technical and financial resources to provide the services the CHRI requires, and we found that partner in Scientific Games” said Craig Fravel, executive vice president of the Del Mar Thoroughbred Club.

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