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Equity Investments
6 Months Ended
Jun. 30, 2015
Equity Method Investments and Joint Ventures [Abstract]  
Equity Investments
Equity Investments
The following provides an update for events that occurred during the six months ended June 30, 2015 related to our equity method investments, which are disclosed in Note 11 (Equity Investments) in our 2014 Annual Report on Form 10-K.
Northstar Illinois
We own a 20% equity interest in Northstar Illinois, an entity formed with Gtech Corporation (“Gtech”) to be the private manager for the Illinois lottery. Northstar Illinois manages the day-to-day operations of the lottery under a PMA with the State of Illinois which commenced in January 2011 and has a 10-year term. Northstar Illinois is responsible for annual shortfall payments to the Illinois Lottery to the extent predetermined net income targets in the PMA are not achieved. Under our supply agreement with Northstar Illinois, we are responsible for the design, development, manufacturing, warehousing and distribution of instant lottery games and are compensated based on a percentage of retail sales. In August 2014, we understand that the Governor’s office of the State of Illinois directed the Illinois Lottery to end the PMA with Northstar Illinois.
In December 2014, Northstar Illinois, the State of Illinois, SGI and Gtech entered into a termination agreement with respect to the PMA. The termination agreement contemplates, among other things, (1) termination of the PMA in December 2015 (subject to extension by the State for up to an additional 18 months), (2) that, following the Illinois Lottery’s 2014 fiscal year, Northstar Illinois will no longer be entitled to any incentive compensation payments and will no longer be liable for any shortfall payments, (3) reimbursement of Northstar Illinois for certain costs it incurs in transitioning its obligations under the PMA and (4) continuation of our instant lottery game supply agreement (and Gtech’s lottery systems supply agreement) until June 2021, subject to a reduced rate structure, early termination in certain circumstances and a "matching right" for SGI (and Gtech) under certain circumstances involving a competitive procurement to replace the supply agreements.
In February 2015, the Illinois Governor’s Office sent a letter to Northstar Illinois stating that the Illinois Attorney General issued a formal decision disapproving the termination agreement and that the Governor’s Office has directed the Illinois Lottery to enforce the terms of the PMA. Both Northstar Illinois and we believe that the termination agreement is valid and binding on the parties.
SGI, Northstar Illinois and Gtech are in discussions with the State of Illinois in an active attempt to resolve this dispute. In June 2015, the parties executed a term sheet setting forth the principal terms of a potential settlement that contemplates entering into a new termination agreement. We anticipate that the new termination agreement will be entered into during the third quarter of 2015.  To effect the terms of the term sheet, during the three months ended June 30, 2015, we recorded a charge of $2.0 million, representing our 20% share of the $10.0 million net income shortfall payment for the lottery's 2015 fiscal year, in earnings from equity investments in our Consolidated Statements of Operations and Comprehensive Loss and recorded an adjustment to reduce revenue by $1.3 million in our Consolidated Statements of Operations and Comprehensive Loss.  
Sportech
In January 2014, we completed the sale of our 20% equity interest in Sportech for cash proceeds of £27.8 million, or $44.9 million, resulting in a gain of approximately £9 million, or $14.5 million, which is reflected as a gain on sale of equity interest in our Consolidated Statements of Operations and Comprehensive Loss for the six months ended June 30, 2014.
GLB
During the six months ended June 30, 2015, we received a dividend of RMB11.1 million, or $1.6 million.
ITL
During the six months ended June 30, 2015, we received a distribution of capital of €5.8 million, or $6.5 million.
RCN
During the six months ended June 30, 2015, we received a dividend of $1.8 million.
Hellenic Lotteries
During the six months ended June 30, 2015, we received a dividend of €1.8 million, or $2.0 million and a distribution of capital of €10.7 million, or $12.0 million.
LNS
During the six months ended June 30, 2015, we received a dividend of €12.9 million, or $14.5 million and a distribution of capital of €15.0 million, or $16.8 million.