Scientific Games joint venture signs services agreement with NJ Lottery

theflyonthewall.com

Scientific Games has signed a long-term agreement to provide marketing, sales and other services to the New Jersey Lottery. Services under the agreement are expected to begin on October 1, following a transition period and end on June 30, 2029. Under the terms of the agreement, Northstar NJ will be entitled to receive annual incentive compensation to the extent the Lottery's net income for the applicable year exceeds specified target levels, subject to a cap of 5% of such net income. Northstar NJ will be responsible for payments to the State to the extent the Lottery net income targets set forth in Northstar NJ's successful bid are not achieved, subject to a cap of 2% of the applicable year's net income and a $20 million shortfall payment credit. Upon execution of this agreement, Northstar NJ made a $120M payment to the State, and Northstar NJ has committed to ensuring that at least 30% of annual lottery ticket revenues will be transferred to State institutions and State aid for education.

Rates

View Comments (0)