Financial Information for Guarantor Subsidiaries and Non-Guarantor Subsidiaries

We conduct substantially all of our business through our domestic and foreign subsidiaries. SGI’s obligations under the Credit Agreement, the 2016 Notes and the 2019 Notes are fully and unconditionally and jointly and severally guaranteed by Scientific Games Corporation (the “Parent Company”) and our 100%-owned domestic subsidiaries other than SGI (the “Guarantor Subsidiaries”). Our 2018 Notes, which were issued by the Parent Company, are fully and unconditionally and jointly and severally guaranteed by our 100% owned domestic subsidiaries, including SGI.

Presented below is condensed consolidating financial information for (i) the Parent Company, (ii) SGI, (iii) the Guarantor Subsidiaries and (iv) our 100%-owned foreign subsidiaries and our non-100%-owned domestic and foreign subsidiaries (collectively, the “Non-Guarantor Subsidiaries”) as of March 31, 2012 and December 31, 2011 and for the three months ended March 31, 2012 and 2011. The condensed consolidating financial information has been presented to show the nature of assets held, results of operations and cash flows of the Parent Company, SGI, the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries assuming the guarantee structures of our obligations as disclosed in Note 8 of the Notes to Consolidated Financial Statements in our 2011 Annual Report on Form 10-K for all periods presented.

The condensed consolidating financial information reflects the investments of the Parent Company in the Guarantor and Non-Guarantor Subsidiaries using the equity method of accounting. Corporate interest and administrative expenses have not been allocated to the subsidiaries.

SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL CONDENSED CONSOLIDATING BALANCE SHEET

As of March 31, 2012



	Parent Company		SGI		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminating Entries			Consolidated
Assets
Cash and cash equivalents	$	21,902	$	298	$	—	$	80,644	$	(2,441	)	$	100,403
Accounts receivable, net	—		51,552		37,488		88,358		—			177,398
Inventories	—		23,420		17,503		38,902		—			79,825
Other current assets	8,234		3,383		6,197		23,957		—			41,771
Property and equipment, net	3,850		163,167		34,297		218,202		—			419,516
Investment in subsidiaries	542,361		788,708		—		855,867		(2,186,936		)	—
Goodwill	—		273,656		78,618		427,293		—			779,567
Intangible assets	—		41,527		24,730		19,094		—			85,351
Intercompany balances	98,616		—		244,313		—		(342,929		)	—
Other assets	74,985		20,915		14,229		384,796		(2,613		)	492,312
Total assets	$	749,948	$	1,366,626	$	457,375	$	2,137,113	$	(2,534,919	)	$	2,176,143
Liabilities and stockholders’ equity
Current installments of long-term debt	$	—	$	6,280	$	—	$	27,539	$	—		$	33,819
Other current liabilities	17,098		61,711		28,324		86,253		(2,429		)	190,957
Long-term debt, excluding current installments	250,000		1,103,473		—		93		—			1,353,566
Other non-current liabilities	5,266		39,112		13,010		62,829		—			120,217
Intercompany balances	—		119,804		—		223,135		(342,939		)	—
Stockholders’ equity	477,584		36,246		416,041		1,737,264		(2,189,551		)	477,584
Total liabilities and stockholders’ equity	$	749,948	$	1,366,626	$	457,375	$	2,137,113	$	(2,534,919	)	$	2,176,143

SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL CONDENSED CONSOLIDATING BALANCE SHEET

As of December 31, 2011



	Parent Company		SGI		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminating Entries			Consolidated
Assets
Cash and cash equivalents	$	24,042	$	56	$	—	$	81,482	$	(1,178	)	$	104,402
Accounts receivable, net	—		53,531		41,238		87,698		—			182,467
Inventories	—		23,714		16,884		39,144		—			79,742
Other current assets	8,699		3,409		5,117		23,277		—			40,502
Property and equipment, net	3,522		166,637		36,028		220,301		—			426,488
Investment in subsidiaries	551,256		721,909		—		909,379		(2,182,544		)	—
Goodwill	—		273,656		78,618		416,044		—			768,318
Intangible assets	—		41,520		25,849		19,490		—			86,859
Intercompany balances	125,440		—		231,357		—		(356,797		)	—
Other assets	17,002		82,748		12,265		367,209		(6,101		)	473,123
Total assets	$	729,961	$	1,367,180	$	447,356	$	2,164,024	$	(2,546,620	)	$	2,161,901
Liabilities and stockholders’ equity
Current installments of long-term debt	$	—	$	6,280	$	—	$	19,911	$	—		$	26,191
Other current liabilities	31,231		56,050		30,140		94,682		(1,211		)	210,892
Long-term debt, excluding current installments	250,000		1,104,884		—		9,592		—			1,364,476
Other non-current liabilities	5,016		38,772		13,427		59,413		—			116,628
Intercompany balances	—		71,603		—		285,162		(356,765		)	—
Stockholders’ equity	443,714		89,591		403,789		1,695,264		(2,188,644		)	443,714
Total liabilities and stockholders’ equity	$	729,961	$	1,367,180	$	447,356	$	2,164,024	$	(2,546,620	)	$	2,161,901

SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME

Three Months Ended March 31, 2012



	Parent Company			SGI			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Entries			Consolidated
Revenue	$	—		$	106,651		$	9,549		$	118,948		$	(573	)	$	234,575
Cost of instant ticket revenue, cost of services and cost of sales (1)	—			32,990			34,214			67,171			(1,626		)	132,749
Selling, general and administrative expenses	15,522			14,737			3,632			12,932			(651		)	46,172
Employee termination and restructuring costs	—			—			—			2,875			—			2,875
Depreciation and amortization	149			7,320			4,777			18,272			—			30,518
Operating income (loss)	(15,671		)	51,604			(33,074		)	17,698			1,704			22,261
Interest expense	5,302			19,172			—			424			—			24,898
Other (income) expense, net	(2,188		)	40,049			(45,321		)	(3,567		)	1,704			(9,323		)
Income (loss) before equity in income of subsidiaries, and income taxes	(18,785		)	(7,617		)	12,247			20,841			—			6,686
Equity in income (loss) of subsidiaries	(34,319		)	12,107			—			—			22,212			—
Income tax expense	(54,923		)	58,199			—			1,591			—			4,867
Net income (loss)	$	1,819		$	(53,709	)	$	12,247		$	19,250		$	22,212		$	1,819

Other comprehensive income (loss)	25,422			219			—			25,031			(25,250		)	25,422
Comprehensive income (loss)	$	27,241		$	(53,490	)	$	12,247		$	44,281		$	(3,038	)	$	27,241

(1) Exclusive of depreciation and amortization.

SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME

Three Months Ended March 31, 2011



	Parent Company			SGI			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Entries			Consolidated
Revenue	$	—		$	98,057		$	9,520		$	89,373		$	(294	)	$	196,656
Cost of instant ticket revenue, cost of services and cost of sales (1)	—			32,293			32,171			47,669			(288		)	111,845
Selling, general and administrative expenses	15,565			12,456			2,636			9,255			(358		)	39,554
Depreciation and amortization	128			7,564			4,946			18,266			—			30,904
Operating income (loss)	(15,693		)	45,744			(30,233		)	14,183			352			14,353
Interest expense	5,390			20,658			—			407			—			26,455
Other (income) expense, net	(1,221		)	40,775			(42,640		)	(7,610		)	352			(10,344		)
Income (loss) before equity in income of subsidiaries, and income taxes	(19,862		)	(15,689		)	12,407			21,386			—			(1,758		)
Equity in income (loss) of subsidiaries	16,686			13,427			—			—			(30,113		)	—
Income tax expense	3,756			(291		)	—			1,709			—			5,174
Net income (loss)	$	(6,932	)	$	(1,971	)	$	12,407		$	19,677		$	(30,113	)	$	(6,932	)

Other comprehensive income (loss)	$	35,070		$	1,304		$	—		$	33,373		$	(34,677	)	$	35,070
Comprehensive income (loss)	$	28,138		$	(667	)	$	12,407		$	53,050		$	(64,790	)	$	28,138

(1) Exclusive of depreciation and amortization.

SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Three Months Ended March 31, 2012



	Parent Company			SGI			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminating Entries			Consolidated
Net cash provided by operating activities	$	(14,095	)	$	14,044		$	1,337		$	20,593		$	45		$	21,924
Cash flows from investing activities:
Capital, lottery and gaming systems expenditures	(423		)	(2,894		)	(613		)	(5,421		)	—			(9,351		)
Business acquisitions, net of cash acquired	—			—			—			(344		)	—			(344		)
Other assets and investments	(12		)	(54,595		)	(2,988		)	49,624			(2,136		)	(10,107		)
Net cash provided by (used in) investing activities	(435		)	(57,489		)	(3,601		)	43,859			(2,136		)	(19,802		)
Cash flows from financing activities:
Net proceeds (payments) on long-term debt	—			(1,570		)	—			(1,981		)	—			(3,551		)
Net redemptions of common stock under stock-based compensation plans	(3,555		)	—			5			(2,141		)	2,136			(3,555		)
Payment of financing fees	—			(57		)	—			—			—			(57		)
Other, principally intercompany balances	15,946			45,041			998			(61,940		)	(45		)	—
Net cash provided by (used in) financing activities	12,391			43,414			1,003			(66,062		)	2,091			(7,163		)
Effect of exchange rate changes on cash	—			272			—			770			—			1,042
Increase (decrease) in cash and cash equivalents	(2,139		)	241			(1,261		)	(840		)	—			(3,999		)
Cash and cash equivalents, beginning of period	24,042			56			2,379			77,925			—			104,402
Cash and cash equivalents, end of period	$	21,903		$	297		$	1,118		$	77,085		$	—		$	100,403

SCIENTIFIC GAMES CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Three Months Ended March 31, 2011



	Parent Company			SGI			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminating Entries			Consolidated
Net cash provided by operating activities	$	(8,245	)	$	28,222		$	1,933		$	26,717		$	(17	)	$	48,610
Cash flows from investing activities:
Capital, lottery and gaming systems expenditures	(490		)	(6,063		)	(606		)	(3,287		)	—			(10,446		)
Business acquisitions, net of cash acquired	—			—			302			(302		)	—			—
Other assets and investments	(81		)	(12,154		)	(3,269		)	(51,797		)	28,066			(39,235		)
Net cash provided by (used in) investing activities	(571		)	(18,217		)	(3,573		)	(55,386		)	28,066			(49,681		)
Cash flows from financing activities:
Net proceeds (payments) on long-term debt	—			(1,570		)	—			(551		)	—			(2,121		)
Net redemptions of common stock under stock-based compensation plans	(1,521		)	—			5			28,061			(28,066		)	(1,521		)
Purchase of treasury stock	—			—			—			—			—			—
Payment of financing fees	(8		)	(2,615		)	—			—			—			(2,623		)
Other, principally intercompany balances	8,080			(6,511		)	(2,368		)	782			17			—
Net cash provided by (used in) financing activities	6,551			(10,696		)	(2,363		)	28,292			(28,049		)	(6,265		)
Effect of exchange rate changes on cash	4			658			—			984			—			1,646
Increase (decrease) in cash and cash equivalents	(2,261		)	(33		)	(4,003		)	607			—			(5,690		)
Cash and cash equivalents, beginning of period	62,639			150			2,279			59,213			—			124,281
Cash and cash equivalents, end of period	$	60,378		$	117		$	(1,724	)	$	59,820		$	—		$	118,591