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Equity Method Investments
6 Months Ended
Jun. 30, 2013
Equity Method Investments and Joint Ventures [Abstract]  
Equity Method Investments
Equity Method Investments
 
There have been no changes in our equity method investments from those disclosed in Note 10 of the Notes to Consolidated Financial Statements in our 2012 Annual Report on Form 10-K, except as described below.

In December 2012, we formed a consortium with GTECH Corporation (“GTECH”) and a subsidiary of the administrator of the Ontario Municipal Employees Retirement System (“OMERS”) to bid for a long-term agreement to provide marketing and sales services for the New Jersey lottery. In April 2013, the State issued a notice of intent to award the services agreement to our consortium. In June 2013, our consortium entity, Northstar New Jersey Lottery Group, LLC (“Northstar New Jersey”), executed the services agreement and, in connection therewith, made a $120,000 payment to the State. Services under the agreement are expected to begin on October 1, 2013 following a transition period and end on June 30, 2029. We own a 17.69% equity interest in Northstar New Jersey. In connection with the execution of the services agreement, we contributed approximately $21,200 to Northstar New Jersey, representing our pro rata share of the $120,000 payment. We are also responsible for our pro rata share of the initial working capital requirements of Northstar New Jersey, of which we have contributed approximately $1,100 to date. We will account for our 17.69% interest in Northstar New Jersey as an equity method investment due to our significant influence through our substantive participating rights in the entity.
 
Under the terms of the agreement with the New Jersey Lottery, Northstar New Jersey will be entitled to receive annual incentive compensation payments 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 New Jersey will be responsible for payments to the State to the extent the lottery net income targets set forth in Northstar New Jersey's successful bid are not achieved, subject to a cap of 2% of the applicable year's net income and a $20,000 shortfall payment credit. 

Under separate supply agreements, Scientific Games will provide Northstar New Jersey with instant lottery games and related services and GTECH will provide Northstar New Jersey with lottery systems and equipment and related services. Scientific Games is expected to have a 30% economic interest (and be responsible for 30% of the capital requirements) associated with these supply arrangements. We own a 30% equity interest in Northstar SupplyCo New Jersey, LLC, an entity we formed with GTECH in connection with these supply arrangements.

In December 2012, the Hellenic Republic Asset Development Fund provisionally awarded our consortium a 12-year concession for the exclusive rights to the production, operation and management of instant ticket and certain traditional lotteries in Greece. In June 2013, the consortium formally incorporated as an operating company principally owned by OPAP S.A., us and Intralot, S.A. We own a 16.5% equity interest in the operating company. In July 2013, the operating company executed the concession agreement with the Hellenic Republic Asset Development Fund. The commencement of operations under the concession agreement remains subject to Greek parliamentary and competition authority approvals. Subject to the satisfaction of these conditions, the operating company will pay an upfront fee of €190,000 to the Hellenic Republic Asset Development Fund, of which our portion will be €31,400, and will be responsible for a monthly fee to the Greek government equal to a percentage of gross gaming revenue.  In July 2013, we contributed approximately €6,600 to the operating company, representing our pro rata share of the operating company's minimum capital requirement, amounts required for working capital and the first installment of the €190,000 upfront fee to be held in escrow pending satisfaction of the conditions. In July 2013, we executed an instant ticket supply agreement with the operating company, pursuant to which we will be the exclusive provider of instant tickets and design services to the operating company and will also be responsible for certain advisory services applicable to all lottery tickets included in the concession.