Scientific Games Expands Licensing Agreement With Warner Bros.
On Tuesday, Scientific Games announced that they have extended and widened their licensing agreement with Warner Bros. This means that the lottery manufacturer and operator can continue using the movie studio’s most recognizable brands.
Scientific Games, a gaming entity focused on lotteries and sports betting, has recently extended its brand licensing agreement with Warner Bros. This means Scientific Games can continue using various brands from the studio’s movies and shows, such as The Wizard of Oz and Willy Wonka & The Chocolate Factory, on its Warner Bros.-branded scratch-off lottery tickets. The company was formerly known as Light & Wonder, but after selling off its lottery and sports betting business it rebranded to its current name. This multiyear agreement with Warner Bros. will also permit the usage of other well-known brands like Friends, Caddyshack, Elf, and National Lampoon’s Vacation in the company’s lottery products.
This week, an agreement was established that included an expansion of the existing partnership between Scientific and Warner Bros., allowing Scientific to use the title of Warner’s Game of Thrones for retail and digital lottery games. No further details have been released regarding the continuation of the partnership. This news comes shortly after Light & Wonder’s announcement of their deal with Warner Bros., granting them permission to use the studio’s movie and TV properties for their interactive slot games. Branded Games have become increasingly popular in the business world.
Branded Games Big Business
Scientific Games is delighted to announce an extension and expansion of their licensing agreement with Warner Bros. According to the revenue details, Scientific Games’ licensed branded games were reported to be at $2.7 billion in retail sales for the 2022 fiscal year. Furthermore, the brand selection process is heavily based on “Power Index,” a science-based research that is correlated with consumer familiarity. Some of these licensed brands include Game of Thrones, which the lottery giant has recently released digital and retail games for. The agreement between Scientific and Warner was initially completed in 2009.
In 2017, the Kansas Lottery launched its first-ever Wizard of Oz lottery game, consisting of instant, scratch, and digital game formats, based on the 1939 film. Since then, the game has been sold in 16 lottery jurisdictions. These lottery games have proven to be incredibly popular, with Scientific’s Willy Wonka products being some of the most sought after, thanks to a partnership with Warner Bros.
Willy Wonka lottery scratch-off games were highlighted by an advertised $1 billion prize. According to Scientific, their sales recently reached $1 billion, resulting in over $300 million in proceeds for the 18 states that offer these games. This has been a record year for the lottery.
In the 2021-22 fiscal year, US lottery sales hit a record high of $107.9 billion, posting a 2.5% growth. This “post-pandemic bounce” resulted in nearly $29 billion in gross revenue. The New York Lottery led the charge with total gross sales of over $10.3 billion, following closely by Florida with $9.3 billion, and California with $8.8 billion. As of 2022, 45 states and three US territories had legal lottery gaming available to their residents, and 23 of these states sold more than $1 billion in tickets. Revenues from lotteries benefit a diverse range of programs including, but not limited to, property tax relief, senior care, public education, tuition assistance, public works projects, and state spending.
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