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Scientific Games and New York Lottery Extend 50-Year Partnership

Read about the extended partnership between Scientific Games and the New York Lottery, aimed at bringing new instant scratch-off games to players. Explore the history of their collaboration and the impact on education funding, alongside insights into the challenges facing online casino legalization in New York.
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Branimir Ivanov | Senior News Contributor

Updated: May 15, 2024

The New York Impact

Scientific Games and the New York Lottery have announced the extension of their nearly half-century partnership, which began in 1976. Over the years, this partnership has proven to be a cornerstone of the New York Lottery's success, consistently delivering engaging gaming experiences to players across the state. With this renewed commitment, both parties are poised to continue their legacy of innovation and excellence in the lottery industry.

The extension of the partnership underscores the confidence that the New York Lottery places in Scientific Games' ability to provide high-quality instant scratch-off games that resonate with players. By leveraging Scientific Games' expertise and resources, the New York Lottery aims to enhance player engagement and drive sales, ultimately maximizing revenue for education funding in the state. This new primary provider contract signifies a mutual dedication to delivering exciting gaming experiences and supporting the educational initiatives that benefit communities throughout New York.

 

Background

The partnership between Scientific Games and the New York Lottery has been long-standing. Scientific Games has provided the New York Lottery with consumer and product research, data analytics, game development, and portfolio planning, which have contributed to the success of the lottery’s scratch-off games.

Gweneth Dean, director of the New York Lottery, stated, “Our collaboration has resulted in billions of dollars for New York’s public schools. We look forward to creating new games for our players and supporting our retailers across the state.”

 

Key Points

  • Success: The New York Lottery is among the top 10 instant scratch game sellers globally, with one of North America’s highest total lottery profits.
  • Industry Leader: Scientific Games is the world’s largest lottery games creator and serves as the primary provider to nine of the top 10 performing instant game lotteries globally.
  • Portfolio Success: The partnership with Scientific Games has resulted in a well-balanced scratch-off portfolio for the New York Lottery, with three price points in the top five in the US for weekly per capita sales.

 

Financial Impact and Education Funding

In the fiscal year 2022/23, the New York Lottery’s scratch-off games generated over $4.41 billion in sales, significantly contributing to education funding. During the same period, school districts in the five boroughs received nearly $1.1 billion in Lottery Aid to Education funds.

Established in 1967, the New York Lottery is the state-operated lottery system under the New York State Gaming Commission. It continues to be North America’s largest and most profitable lottery.

Founded in 1973, Scientific Games has emerged as a global provider in retail and digital products, technology, and services for government-sponsored lottery and sports betting programs. With products generating over 70% of global instant game retail sales, the company works with 150 lotteries in 50 countries.

 

Future Prospects: iLottery and Online Casinos

Scientific Games has broadened its offerings by partnering with B2B iGaming supplier 7777 Gaming, making it the ninth studio partner for their iLottery platform. This move indicates a strategic expansion into the digital gaming realm, leveraging 7777 Gaming's expertise to enhance the iLottery experience for players. The addition of 7777 Gaming reflects Scientific Games' commitment to staying at the forefront of technological advancements in the gaming industry.

However, the road to legalizing online casinos in New York has been fraught with challenges. Despite New York Senator Joe Addabbo's persistent efforts to push for legalization, progress has been slow. Addabbo reintroduced his legislative attempt in January, but the bill failed to gain traction during the budget discussions, signaling a setback in the legalization process.

Moreover, the New York State Gaming Commission's indication that the downstate NY casino licensing process might not conclude until the end of 2025 adds further uncertainty. This delay could potentially push the legalization of online casinos to as late as 2026. The bureaucratic hurdles and legislative gridlock surrounding online casino legalization highlight the complexities involved in expanding gaming options in New York.

In summary, while Scientific Games and the New York Lottery maintain their successful partnership, the future of online casinos in New York remains uncertain. Despite facing obstacles, both parties remain committed to providing innovative gaming experiences and supporting education in the state. As the landscape of gaming evolves, it will be crucial for stakeholders to navigate regulatory challenges and seize opportunities for growth and innovation.

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