The Jockey Club and Scientific Games Racing (NASDAQ: SGMS) announced today that the two companies have established a cooperative working relationship designed to dramatically improve the capabilities and technology of the industry’s wagering systems and provide the industry with a more secure wagering infrastructure in the process.
The improved system architecture will permit the transmission of wagering detail on all wagers as well as the ability to place wagers using wireless personal devices such as PDAs (personal digital assistants) and cell phones.
The ability to transmit wagering transaction detail in real time to an independent, industry-owned central database for real-time security monitoring and industry-wide information management will be a key feature of the new system.
“We developed the Quantum System™ to meet the racing industry’s need for improved throughput, expanded distribution and enhanced security,” said Lorne Weil, chairman and CEO of Scientific Games Corporation. “Quantum is Linux-based, features platform independence, and a robust infrastructure for distributed processing. Now that we have a system that can fully utilize broadband communications, the pari-mutuel network can handle significantly more wagers in a secure, real-time environment.”
The Quantum System was installed at Delaware Park in July and will be rolled out at other racetracks throughout 2004. Scientific Games Racing will demonstrate how the system works at its booth at the University of Arizona’s Race Track Industry Program Symposium in Tucson this week.
Alan Marzelli, the president of The Jockey Club, said that the new wagering system architecture will mirror the centralized database design now being used by Equibase Company and InCompass Solutions, Inc. as they provide real-time racing information and racing office software systems to racetracks.
“Through the InCompass racing office software introduced earlier this year, racetracks throughout the country have seen the benefits of using a centralized database,” Marzelli said. “The development of a centralized database of wagering information was one of the actions recommended to improve wagering security by the NTRA Wagering Technology Working Group and Giuliani Partners and this project will make that a reality.”
Marzelli said The Jockey Club and Scientific Games Racing would work together, and seek the support and cooperation of other industry stakeholders, to develop other necessary protocols and explore opportunities to significantly upgrade the pari-mutuel industry’s data network.
“In the NTRA Wagering Technology Working Group’s report, Mayor Giuliani stressed that the racing industry needed proper leadership, careful preparation, thoughtful experimentation and determined follow-through to secure the electronic systems of the racing industry,” Marzelli said. “I think this cooperative initiative proves that we are doing exactly that.”
The Jockey Club is a tax-exempt non-stock membership corporation dedicated to the improvement of Thoroughbred breeding and racing.
Scientific Games Corporation (NASDAQ: SGMS) is a global technology leader in the pari-mutuel and lottery industries, with expertise in the management of lotteries and pari-mutuel wagering facilities and the production of prepaid phone cards. Scientific Games Racing is the world’s largest supplier of wagering systems and services to racetracks and off-track betting facilities, handling tote operations that account for nearly 65 percent of North American handle.
This press release includes statements that constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. This information involves risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. For certain information regarding these risks and uncertainties, reference is made to Scientific Games’ Annual Report on Form 10-K/A for the fiscal year ended December 31, 2002 and its Quarterly Report on Form 10-Q for the period ended September 30, 2003.
Bob Curran Jr.
Vice President, Corporate Communications
The Jockey Club
Lisa D. Lettieri
Director of Corporate Communications
Scientific Games Corproation