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Exhibit 4.1    
  

 
 

CERTIFICATE OF DESIGNATIONS, PREFERENCES
  AND RELATIVE, PARTICIPATING, OPTIONAL AND
  OTHER SPECIAL RIGHTS OF PREFERRED
  STOCK AND QUALIFICATIONS, LIMITATIONS
  AND RESTRICTIONS THEREOF
  
    OF

    SERIES B PREFERRED STOCK
  
    OF
  
    SCIENTIFIC GAMES CORPORATION    
  

Pursuant
to Section 151 of the

General Corporation Law of the State of Delaware 

        Scientific
Games Corporation, a Delaware corporation (the "Corporation"), certifies that pursuant to the authority contained in its
Certificate of Incorporation (the "Certificate of Incorporation") and in accordance with the provisions of Section 151 of the General Corporation
Law of the State of
Delaware, the Board of Directors of the Corporation duly adopted the following resolution, which resolution remains in full force and effect on the date hereof: 

        RESOLVED,
that there is hereby established a series of authorized preferred stock having a par value of $1.00 per share, which series shall be designated as "Series B Preferred
Stock" ("Series B Preferred Stock"), shall consist of 2,000 shares and shall have the following voting powers, preferences and relative,
participating, optional and other special rights, and qualifications, limitations and restrictions thereof, as follows: 

        1      Certain Definitions.

        Unless
the context otherwise requires, the terms defined in this Section 1 shall have, for all purposes of this resolution, the meanings herein specified (with terms defined in
the singular having comparable meanings when used in the plural). 

        "Business Day" shall mean a day other than a Saturday or Sunday or a bank holiday in New York. 

        "Common Stock" shall mean the Class A Common Stock, par value $0.01 per share, of the Corporation. 

        "Director" shall mean a member of the Corporation's Board of Directors. 

        "Holder" shall mean the record holder of any shares of Series B Preferred Stock, including any fractional shares thereof, as shown
on the books and records of the Corporation. 

        "Junior Stock" shall mean the Common Stock, the Corporation's Class B Nonvoting common stock and any other series of common or
preferred stock established by the Board of Directors of the Corporation that by its terms is junior to the Series B Preferred Stock, as to either redemption payments or the distribution of
assets upon liquidation, dissolution or winding up, or both. 

        "Liquidation Preference" shall mean $1.00 per share of Series B Preferred Stock. 

        "Redemption Price" shall mean a price equal to the Liquidation Preference. 

 

        "Senior Stock" shall mean the Series A Preferred Stock and any other series of preferred stock established by the Board of
Directors of the Corporation that by its terms is senior to the Series B Preferred Stock, as to either redemption payments or the distribution of assets upon liquidation, dissolution or winding
up, or both. 

        "Series A Certificate" shall mean the Certificate of Designations, Preferences and Relative, Participating, Optional and Other
Special Rights of Preferred Stock and Qualifications, Limitations and Restrictions Thereof of Series A Preferred Stock. 

        "Series A Preferred Stock" shall mean the Series A Convertible Preferred Stock, par value $1.00, of the Corporation. 

        2      Dividends.

        (a)  The
Holders shall be not entitled to receive dividends on their shares of Series B Preferred Stock. 

        (b)  The
Corporation and each Holder acknowledge and agree that it is intended that the Series B Preferred Stock not constitute "preferred stock" within the meaning of
Section 305 of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations promulgated thereunder, and neither the Corporation nor the Holders shall treat the Series B
Preferred Stock as such. 

        3      Distributions Upon Liquidation, Dissolution or Winding Up.

        (a)  In
the event of any voluntary or involuntary liquidation, dissolution or other winding up of the affairs of the Corporation, after required payments and distributions
are made to the holders of Senior Stock and before any payment or distribution shall be made to the holders of Junior Stock, the Holders of Series B Preferred Stock shall be entitled to be paid
out of the assets of the Corporation in cash or
property at its fair market value as determined by the Board of Directors of the Corporation the Liquidation Preference per share. Except as provided in this Section 3(a), Holders of
Series B Preferred Stock shall not be entitled to any distribution in the event of liquidation, dissolution or winding up of the affairs of the Corporation. 

        (b)  If,
upon any such liquidation, dissolution or other winding up of the affairs of the Corporation, the assets of the Corporation shall be insufficient to permit the
payment in full of the Liquidation Preference per share, then the assets of the Corporation shall be ratably distributed among the Holders of Series B Preferred Stock in proportion to the full
amounts to which they would otherwise be respectively entitled if all amounts thereon were paid in full. Neither the consolidation or merger of the Corporation into or with another corporation or
corporations, nor the sale, lease, transfer or conveyance of all or substantially all of the assets of the Corporation to another corporation or any other entity shall be deemed a liquidation,
dissolution or winding up of the affairs of the Corporation within the meaning of this Section 3. 

        4      Redemption by the Corporation.

        (a)  Upon
the redemption of the Series A Preferred Stock by the Corporation in accordance with Section 4 of the Series A Certificate, the Corporation
shall concurrently redeem all, but not less than all, of the outstanding shares of Series B Preferred Stock on payment of the Redemption Price for each share of Series B Preferred Stock
to be redeemed. 

        (b)  Upon
the conversion of the Series A Preferred Stock by any holder thereof in accordance with Section 5 of the Series A Certificate, the Corporation
shall concurrently redeem, and such holder shall be deemed to have irrevocably surrendered for redemption at such time, that number of shares of Series B Preferred Stock owned by such holder
equal to the product of (i) the total number of shares of Series B Preferred Stock owned by such holder immediately prior to such redemption and (ii) a fraction, the numerator of
which is the number of shares of Series A Preferred Stock being converted 

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by such holder and the denominator of which is the total number of shares of Series A Preferred Stock owned by such holder immediately prior to such conversion. Such holder shall have the
right to receive from the Corporation the Redemption Price for each share of its Series B Preferred Stock so redeemed. From and after the date of redemption pursuant to this
Section 4(b), such holder shall not be entitled, with respect to the shares of Series B Preferred Stock so redeemed, to exercise any of the rights of the Holders of Series B
Preferred Stock, except the right to receive the Redemption Price. 

        (c)  On
September 6, 2005, the Corporation shall automatically redeem each share of Series B Preferred Stock on payment of the Redemption Price for each share
of Series B Preferred Stock to be redeemed. 

        (d)  Before
redeeming any shares of Series B Preferred Stock pursuant to Section 4(a) or Section 4(c), the Corporation shall mail by overnight courier
and fax to each person who, at the date of such mailing and fax, shall be a registered Holder of shares of Series B Preferred Stock to be redeemed, notice of the intention of the Corporation to
redeem such shares held by such registered Holder. Such notice shall be mailed and faxed to the last address of such Holder as it appears on the records of the Corporation, or in the event of the
address of any such Holder not appearing on the records of the Corporation, then to the last address of such Holder known to the Corporation, at least forty-five (45) days before
the date specified for redemption. Such notice shall set out the Redemption Price and the date on which the redemption is to take place. On or after the date so specified for redemption, the
Corporation shall pay or cause to be paid the Redemption Price to the registered Holders of the shares of Series B Preferred Stock on presentation and surrender of the certificates for the
shares of Series B Preferred Stock so called for redemption at the registered office of the Corporation or at such other place or places as may be specified in such notice, and the certificates
for such shares of Series B Preferred Stock shall thereupon be cancelled, and the shares of Series B Preferred Stock represented thereby shall thereupon be redeemed. From and after the
date specified for redemption in such notice, the Holders of the shares of Series B Preferred Stock called for redemption shall not be entitled to exercise any of the rights of the Holders
thereof, except the right to receive the Redemption Price, unless payment of the Redemption Price shall not be made by the Corporation in accordance with the foregoing provisions, in which case the
rights of the Holders of such shares shall remain unaffected. 

        (e)  No
Series B Preferred Stock may be redeemed except with funds legally available for the payment of the Redemption Price. 

        (f)    All
shares of Series B Preferred Stock redeemed pursuant to this Section 4 shall be retired and shall be restored to the status of authorized and unissued
shares of preferred stock, without designation as to series, and may thereafter be reissued as shares of any series of preferred stock. 

        5      Conversion. 

        The
Series B Preferred Stock shall not be convertible into shares of Common Stock or any other series or class of capital stock of the Corporation. 

        6      Voting Rights.

        (a)  The
Holders shall not be entitled to any voting rights with respect to the Series B Preferred Stock except as hereinafter provided in this Section 6 or as
otherwise provided by law. 

        (b)  The
affirmative consent of the Holders that own more than fifty percent (50%) of the then outstanding shares of Series B Preferred Stock (voting as a single
class), given in person or by proxy,
either in writing without a meeting or by vote at any meeting called for the purpose, shall be necessary for authorizing, effecting or validating: 

        (i)    any
amendment, alteration or repeal of any of the provisions of this Certificate of Designations of Series B Preferred Stock (this
"Certificate of Designations"); or 

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        (ii)  any
decision, or the entering into of any agreement, commitment or arrangement, to effect the foregoing; 

and,
except to the extent otherwise required by applicable law, no vote of any other class or series of stock, whether voting separately as a class or series or together with any or all other classes
or series of stock, shall be required for any action described in clause (i) or clause (ii) above. 

        (c)  The
Holders of shares of Series B Preferred Stock, voting separately as a class, shall be entitled to elect: 

        (i)    one
(1) Director for so long as the Holders own in the aggregate shares of Series A Preferred Stock having the right to convert into a number of shares of
Common Stock that (x) equals or exceeds twenty-two and one-half percent (221/2%) of the sum of (i) the number of shares of Common Stock outstanding
plus (ii) the number of shares of Common Stock into which or for which all outstanding securities of the Corporation convertible into or exercisable or exchangeable for Common Stock (including,
without limitation, the Series A Preferred Stock) may be converted, exercised or exchanged (such sum, the "Fully Diluted Equity") and
(y) is less than twenty-five percent (25%) of the Fully Diluted Equity; or 

        (ii)  one
(1) Director for so long as the Holders own in the aggregate shares of Series A Preferred Stock having the right to convert into a number of shares of
Common Stock that (x) equals or exceeds seventeen and one-half percent (171/2%) of the Fully Diluted Equity and (y) is less than twenty percent (20%) of the
Fully Diluted Equity. 

        (d)  If
a Director so elected by the Holders of Series B Preferred Stock shall cease to serve as a Director for any reason before his or her term expires, the Holders
may, by written consent or at a special meeting of the Holders called as provided above, elect a successor to hold office for the unexpired term of the Director whose place shall be vacant. 

        7      Transferability.

        (a)  Except
as provided in Section 7(b), a Holder may not transfer shares of Series B Preferred Stock. 

        (b)  A
Holder may transfer shares of Series B Preferred Stock only upon such Holder's concurrent transfer, to the same transferee, of shares of Series A
Preferred Stock and only if such Holder concurrently transfers to such transferee of Series A Preferred Stock that number of shares of Series B Preferred Stock equal to the product of
(i) the total number of shares of Series B Preferred Stock owned by such Holder immediately prior to such transfer and (ii) a fraction, the numerator of which is the number of
shares of Series A Preferred Stock such Holder is then transferring to such transferee and the denominator of which is the total number of shares of Series A Preferred Stock owned by
such Holder immediately prior to such transfer. If a Holder transfers any shares of Series A Preferred Stock, such Holder shall also concurrently transfer to the transferee of such
Series A Preferred Stock that number of shares of Series B Preferred Stock equal to the product of (y) the total number of shares of Series B Preferred Stock owned by such
Holder immediately prior to such transfer and (z) a fraction, the numerator of which is the number of shares of Series A Preferred Stock such Holder is then transferring to such
transferee and the denominator of which is the total number of shares of Series A Preferred Stock owned by such Holder immediately prior to such transfer. 

        (c)  Any
transfer or attempted transfer of Series B Preferred Stock not made in accordance with this Section 7 shall be voidable by the Company, and the Company
shall not be obligated to treat the transferee as a holder of the shares of the Series B Preferred Stock subject to such purported transfer and shall not record such purported transfer on its
books, and the transferee shall have no rights as a holder of Series B Preferred Stock under this Certificate of Designations or otherwise. If a Holder purports to transfer shares of
Series B Preferred Stock in violation of this Section 7, such Holder 

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thereby forfeits its voting rights as a holder of Series B Preferred Stock provided by Section 6 with respect to the number of shares of Series B Preferred Stock purported to be
transferred until such time, if any, as such Holder shall have fully rescinded such purported transfer and rendered null and void any and all effects or purported effects thereof. If a Holder fails to
transfer shares of Series B Preferred Stock in violation of this Section 7, such Holder thereby forfeits its voting rights as a holder of Series B Preferred Stock provided by
Section 6 with respect to the number of shares of Series B Preferred Stock that such Holder has so failed to transfer until such time, if any, as (i) such Holder shall have fully
rescinded the transfer of the shares of Series A Preferred Stock requiring the transfer of shares of Series B Preferred Stock that was not effected, and rendered null and void any and
all effects or purported effects thereof or (ii) such Holder transfers the shares of Series B Preferred Stock in accordance with this Section 7 required to be so transferred. 

        8      Issuance.

        (a)  The
Corporation may issue Series B Preferred Stock in any amount, including any fraction of a share thereof. When used in this Certificate of Designations,
"shares of Series B Preferred Stock" means "shares or fractional shares of Series B Preferred Stock". 

        (b)  The
Corporation shall issue shares of Series B Preferred Stock only to holders of Series A Preferred Stock. 

        (c)  Shares
of Series B Preferred Stock by the Corporation shall initially be issued proportionately to the holders of Series A Preferred Stock, whereby the
Corporation shall issue to each holder of Series A Preferred Stock that number of shares of Series B Preferred Stock equal to the product of (i) the total number of shares of
Series B Preferred Stock issued in such initial issuance and (ii) a fraction, the numerator of which is the number of shares of Series A Preferred Stock owned by such holder
immediately prior to such issuance and the denominator of which is the total number of shares of Series A Preferred Stock outstanding immediately prior to such issuance. 

        (d)  If
the Corporation, at any time subsequent to the initial issuance of Series B Preferred Stock, issues additional shares of Series A Preferred Stock (other
than as dividends paid in kind on the shares of Series A Preferred Stock then outstanding), the Corporation shall concurrently issue to the recipient of such additional shares of
Series A Preferred Stock that number of shares of Series B Preferred Stock equal to the product of (i) the total number of shares of Series B Preferred Stock outstanding
immediately prior to such issuance and (ii) a fraction, the numerator of which is the number of shares of Series A Preferred Stock the Corporation is then issuing to such recipient and
the denominator of which is the total number of shares of Series A Preferred Stock outstanding immediately prior to such issuance. 

        (e)  Except
as set forth in this Section 8, the Corporation shall not issue shares of Series B Preferred Stock. 

        9      Ranking.

        With
regard to rights to receive redemption payments and distributions upon liquidation, dissolution or winding up of the Corporation, the Series B Preferred Stock shall rank
(x) junior to the Senior Stock and (y) senior to the Common Stock and any other Junior Stock, whether now existing or issued by the Corporation after the date of this Certificate of
Designations. 

        10    Exclusion of Other Rights.

        Except
as may otherwise be required by law, the shares of Series B Preferred Stock shall not have any voting powers, preferences and relative, participating, optional or other
special rights, other than those specifically set forth in this Certificate of Designations and in the Certificate of Incorporation. 

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        11    Headings of Subdivisions.

        The
headings of the various subdivisions hereof are for convenience of reference only and shall not affect the interpretation of any of the provisions hereof. 

        12    Severability of Provisions.

        If
any voting powers, preferences and relative, participating, optional and other special rights of the Series B Preferred Stock and qualifications, limitations and restrictions
thereof set forth in this resolution are invalid, unlawful or incapable of being enforced by reason of any rule of law or public policy, all other voting powers, preferences and relative,
participating, optional and other special rights of Series B Preferred Stock and qualifications, limitations and restrictions thereof set forth in this resolution which can be given effect
without the invalid, unlawful or unenforceable voting powers, preferences and relative, participating, optional and other special rights of Series B Preferred Stock and qualifications,
limitations and restrictions thereof shall, nevertheless, remain in full force and effect, and no voting powers, preferences and relative, participating, optional or other special rights of
Series B Preferred Stock and qualifications, limitations and restrictions thereof herein set forth shall be deemed dependent upon any other such voting powers, preferences and relative,
participating, optional or other special rights of Series B Preferred Stock and qualifications, limitations and restrictions thereof unless so expressed herein. 

        13    Record Holders.

        The
Corporation and the transfer agent for the Series B Preferred Stock may deem and treat the Holder of any shares of Series B Preferred Stock as the true and lawful owner
thereof for all purposes, and neither the Corporation nor the transfer agent shall be affected by any notice to the contrary. 

        14    Notice.

        Except
as may otherwise be provided for herein, all notices referred to herein shall be in writing, and all notices hereunder shall be deemed to have been given upon the earlier of
receipt of such notice or three (3) Business Days after the mailing of such notice if sent by registered mail (unless first-class mail shall be specifically permitted for such notice under the
terms of this Certificate of Designations) with postage prepaid, addressed: if to the Corporation, to its offices at 750 Lexington Avenue, 25th Floor, New York, NY 10022, Attention:
Secretary and General Counsel, or to an agent of the Corporation designated as permitted by this Certificate of Designations, or, if to any Holder of the Series B Preferred Stock, to such
Holder at the address of such Holder of the Series B Preferred Stock as listed in the stock record books of the Corporation (which may include the records of any transfer agent for the
Series B Preferred Stock); or to such other address as the Corporation or Holder, as the case may be, shall have designated by notice similarly given. 

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        IN
WITNESS WHEREOF, the Corporation has caused this certificate to be duly executed by Martin E. Schloss, its Secretary, this 1st day of July, 2002. 

	 	 	SCIENTIFIC GAMES CORPORATION
	

 	
 	
By:	

 Name:    Martin E. Schloss

Title:      Secretary

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Exhibit 4.1

CERTIFICATE OF DESIGNATIONS, PREFERENCES AND RELATIVE, PARTICIPATING, OPTIONAL AND OTHER SPECIAL RIGHTS OF PREFERRED STOCK AND QUALIFICATIONS, LIMITATIONS AND RESTRICTIONS THEREOF OF SERIES B PREFERRED STOCK OF
SCIENTIFIC GAMES CORPORATIONQuickLinks
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Exhibit 4.2    
  

 
  SUPPLEMENTAL
  STOCKHOLDERS'
  AGREEMENT    
  

by
and among 

Cirmatica Gaming, S.A.,
  a Spanish corporation, 

Scientific Games Corporation,
  a Delaware corporation

and

Such Persons as may become a party hereto from time to time. 

Dated:
June 26, 2002 

 
 

SUPPLEMENTAL STOCKHOLDERS' AGREEMENT    
  

        This SUPPLEMENTAL STOCKHOLDERS' AGREEMENT, dated as of June 26, 2002 (this "Agreement"), by and among
Scientific Games Corporation, a Delaware corporation (the "Company"), Cirmatica Gaming, S.A., a company organized under the laws of Spain
("Cirmatica"), and such other parties that may become a party hereto after the date hereof. 

 
 

RECITALS    
  

        A.    The
Company and Cirmatica are each a party to that certain Stockholders' Agreement dated September 6, 2000 (the "2000 Stockholders'
Agreement"). 

        B.    In
connection with an increase in the share capital of the Company, the Company and Cirmatica desire to enter into this Agreement (i) to supplement the ownership
thresholds contained in the 2000 Stockholders' Agreement with respect to the rights of the stockholders a party to such agreement to designate and have elected and appointed directors to the Board and
(ii) to provide for certain restrictions in the transferability of Series B Preferred Stock (as hereinafter defined) that the Company has issued concurrently with the execution and
delivery of this Amendment to the holders of the Preferred Stock. 

        NOW,
THEREFORE, in consideration of the mutual agreements contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties agree as follows: 

        1.    Certain Definitions. In addition to the terms defined elsewhere herein, the following terms have the following meanings
when used herein with initial capital letters: 

        "Affiliate" means, with respect to any Person or entity (the "referent Person"), any
Person or entity that controls the referent Person, any Person or entity that the referent Person controls, or any Person or entity that is under common control with the referent Person. For purposes
of the preceding sentence,
the term "control" means the power, direct or indirect, to direct or cause the direction of the management and policies of a Person or entity through voting securities, by contract or otherwise. 

        "Agreement" means this Supplemental Stockholders' Agreement, as the same may be modified, supplemented or amended from time to time in
accordance with its terms. 

        "Board" has the meaning set forth in Section 3(a) hereof. 

        "Cirmatica" has the meaning set forth in the preamble to this Agreement. 

        "Common Stock" means the Class A common stock, par value $0.01 per share, of the Company. 

        "Company" has the meaning set forth in the preamble to this Agreement. 

        "Holders" means Cirmatica and any Person that becomes a party to this Agreement pursuant to Section 6 hereof. 

        "Person" means an individual, corporation, partnership, limited liability company, association, trust and any other entity or
organization. 

        "Regulatory Approval" means all regulatory approvals and findings of suitability or qualification, including any approvals or findings by
state governing commissions and gaming regulators, or temporary permits or authorizations, or, if applicable, the expiration of any notice periods with respect thereto, that are necessary for the
Holders to own and continue to hold and vote the Series A Preferred Stock, Series B Preferred Stock, Common Stock issuable or issued upon conversion of the Series A Preferred
Stock, or any other shares of capital stock of the Company issued as (or issuable upon the conversion of any warrant, right or other security which is issued as) a dividend or other distribution with
respect to, or in exchange for or in replacement of, such issued or issuable shares of Common Stock and elect or designate for election at least four (or seven, if applicable) directors to the Board. 

 

        "Series A Certificate of Designations" means the Certificate of Designations of the Company relating to the Series A
Preferred Stock. 

        "Series A Preferred Stock" means the Series A Convertible Preferred Stock, par value $1.00 per share, of the Company. 

        "Series B Certificate of Designations" means the Certificate of Designations of the Company relating to the Series B
Preferred Stock. 

        "Series B Preferred Stock" means the Series B Preferred Stock, par value $1.00 per share, of the Company. 

        "2000 Stockholders' Agreement" has the meaning set forth in the Recitals to this Agreement. 

        2.    Effect of Agreement. This Agreement is intended to provide additional rights to the parties hereto in addition to any
rights such parties may have pursuant to the 2000 Stockholders' Agreement. This Agreement is intended to be consistent with the 2000 Stockholders' Agreement, and nothing contained in this Agreement
shall be interpreted to amend, supersede or rescind the 2000 Stockholders' Agreement or any term or provision thereof. 

        3.    Board of Directors. 

        (a)  The
Holders and the Company acknowledge that, pursuant to the Series B Certificate of Designations, the Holders holding Series B Preferred Stock shall be
entitled to collectively elect one (1) director of the Company upon substantially the same terms, and under the same circumstances, as set forth below. To preserve the rights of the Holders to
have their representatives on the Board in the event that any or all of the shares of Series B Preferred Stock are redeemed upon the conversion of the corresponding Series A Preferred
Stock into Common Stock, the Holders and the Company agree to the following provisions relating to the Board. Subject to the Series A Certificate of Designations, the Series B
Certificate of Designations, Section 4(b)(ii) of the 2000 Stockholders' Agreement and Section 3(b) of this Agreement, the Board of Directors of the Company (the
"Board") shall consist of ten (10) directors, and the Holders shall have the right to designate and have elected and appointed: 

        (i)    one
(1) director for so long as the Stockholders (as defined in the 2000 Stockholders' Agreement) beneficially own in the aggregate shares of Common Stock plus
shares of Series A Preferred Stock having the right to convert into a number of shares of Common Stock that (x) equals or exceeds twenty-two and one-half percent
(221/2%) of the sum of (i) the number of shares of Common Stock outstanding plus (ii) the number of shares of Common Stock into which or for which all outstanding
securities of the Company convertible into or exercisable or exchangeable for Common Stock (including, without limitation, the Series A Preferred Stock) may be converted, exercised or exchanged
(such sum, the "Fully Diluted Equity") and (y) is less than twenty-five percent (25%) of the Fully Diluted Equity; or 

        (ii)  one
(1) director for so long as the Stockholders (as defined in the 2000 Stockholders' Agreement) beneficially own in the aggregate shares of Common Stock plus
shares of Series A Preferred Stock having the right to convert into a number of shares of Common Stock that (x) equals or exceeds seventeen and one-half percent
(171/2%) of the Fully Diluted Equity and (y) is less than twenty percent (20%) of the Fully Diluted Equity; 

provided, however, that if the Company shall have failed to comply with any provision of
Section 3(a) of this Agreement, then for as long as such failure continues, the number of directors on the Board shall be increased to a number that is equal to three (3) more than the
then current number of directors, and the Holders shall have a right to designate and have elected and appointed immediately by the Board by resolution or, if specified by the Holders, at the next
annual meeting of the stockholders or at any special meeting, three (3) additional directors to the Board, regardless of the number of shares of Common Stock, Series A Preferred Stock
and Series B Preferred Stock then held by the Holders; 

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 provided, however, that such voting rights with respect to three additional directors shall not vest if voting rights with
respect to three additional directors shall have vested in the Stockholders (as defined in the 2000 Stockholders' Agreement) pursuant to Section 4(b) of the 2000 Stockholders' Agreement, and in
no event shall the number of directors be increased by more than three additional directors in the aggregate pursuant to this Agreement and the 2000 Stockholders' Agreement. 

        (b)  Whenever
such voting rights with respect to three additional directors pursuant to Section 3(a) shall have vested, such rights may be exercised by written consent
of the Holders then holding a majority of the outstanding shares of Common Stock and shares of Common Stock that would be issued upon the conversion of the Series A Preferred Stock then held by
the Holders or at a special meeting of the Holders, called as hereinafter provided, or at any annual meeting of stockholders held for the purpose of electing directors. Such right of the Holders to
designate three additional directors may be exercised until the Company has cured any such failure, at which time the right of the Holders to elect such number of directors shall cease, the term of
such three additional directors previously elected pursuant to Section 3(a) shall thereupon terminate, and the authorized number of directors shall thereupon return to the number of authorized
directors otherwise in effect, but subject always to the same provisions for the renewal and divestment of such special voting rights as provided in Section 3(a). 

        (c)  At
any time when such voting rights with respect to the designation of three additional directors shall have vested in the Holders pursuant to Section 3(a) and if
such right shall not already have been
initially exercised by written consent or otherwise, a proper officer of the Company shall, upon the written request of any Holder, addressed to the Secretary of the Company, call a special meeting of
Holders. Such meeting shall be held at the earliest practicable date upon the notice required for annual meetings of stockholders at the place for holding annual meetings of stockholders of the
Company or if none at a place designated by the Secretary of the Company. If such meeting shall not be called by the proper officers of the Company within thirty (30) days after the personal
service of such written request upon the Secretary of the Company, or within thirty (30) days after mailing the same, within the United States, by registered mail, addressed to the Secretary of
the Company at its principal office (such mailing to be evidenced by the registry receipt issued by the postal authorities), then the Holders of record of ten percent (10%) of the outstanding shares
of Common Stock and shares of Common Stock that would be issued upon conversion of the Series A Preferred Stock then held by all Holders may designate in writing a Holder to call such meeting
at the expense of the Company, and such meeting may be called by such Person so designated upon the notice required for annual meeting of stockholders and shall be held at the place for holding annual
meetings of the Company or, if none, at a place designated by such Holder. Any Holder that would be entitled to vote at such meeting shall have access to the stock books of the Company for the purpose
of causing a meeting of stockholders to be called pursuant to the provisions of this Section 3(a). Notwithstanding the provisions of this Section 3(a), no such special meeting shall be
called if any such request is received less than 90 days before the date fixed for the next ensuing annual or special meeting of stockholders. 

        (d)  If
a director so elected by the Holders shall cease to serve as a director for any reason before his or her term expires (other than in the event that the Holders are no
longer entitled to designate such a director pursuant to the terms of this Agreement), or shall not receive or retain Regulatory Approval for service as a director, the Holders may by written consent
or at a special meeting of the Holders called as provided above, elect a successor to hold office for the unexpired term of the director whose place shall be vacant. 

        (e)  The
Company shall at all times exercise all authority under applicable law and use its best efforts to cause the directors designated by the Holders for election to the
Board to be nominated as Board members by the nominating committee of the Company as provided below or otherwise. The Company shall, if necessary to permit the Holders' designees to be elected to the
Board, (i) cause the 

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Holders' designees to be included in the slate of designees recommended by the Board to the Company's stockholders for election as directors at each annual meeting of the stockholders of the Company
(or at any special meeting held for the election of directors) and (ii) use its best efforts to cause the election of the Holders' designees at such annual or special meeting, including
soliciting proxies in favor of the election of such Persons. 

        4.    Restrictions on Transferability. 

        (a)  Except
as provided in Section 4(b), a Holder may not transfer shares of Series B Preferred Stock. 

        (b)  A
Holder may transfer shares of Series B Preferred Stock only upon such Holder's concurrent transfer, to the same transferee, of shares of Series A
Preferred Stock and only if such Holder concurrently transfers to such transferee of Series A Preferred Stock that number of shares of Series B Preferred Stock equal to the product of
(y) the total number of shares of Series B Preferred Stock owned by such Holder immediately prior to such transfer and (z) a fraction, the numerator of which is the number of
shares of Series A Preferred Stock such Holder is then transferring to such transferee and the denominator of which is the total number of shares of Series A Preferred Stock owned by
such Holder immediately prior to such transfer. 

        (c)  If
a Holder transfers any shares of Series A Preferred Stock, such Holder shall also concurrently transfer to the transferee of such Series A Preferred
Stock that number of shares of Series B Preferred Stock equal to the product of (y) the total number of shares of Series B Preferred Stock owned by such Holder immediately prior
to such transfer and (z) a fraction, the numerator of which is the number of shares of Series A Preferred Stock such Holder is then transferring to such transferee and the denominator of
which is the total number of shares of Series A Preferred Stock owned by such Holder immediately prior to such transfer. 

        (d)  Any
transfer or attempted transfer of Series B Preferred Stock not made in accordance with this Section 4 shall be voidable by the Company, and the Company
shall not be obligated to treat the transferee as a holder of the shares of the Series B Preferred Stock subject to such purported transfer and shall not record such purported transfer on its
books, and the transferee shall have no rights as a holder of Series B Preferred Stock under the Series B Certificate of Designations, this Agreement or otherwise. If a Holder purports
to transfer shares of Series B Preferred Stock in violation of this Section 4, such Holder thereby forfeits its voting rights as a holder of Series B Preferred Stock provided by
Section 6 of the Series B Certificate of Designations and by this Agreement with respect to the number of shares of Series B Preferred Stock purported to be transferred until such
time, if any, as such Holder shall have fully rescinded such purported transfer. If a Holder fails to transfer shares of Series B Preferred Stock in violation of this Section 4, such
Holder thereby forfeits its voting rights as a holder of Series B Preferred Stock provided by Section 6 of the Series B Certificate of Designations and by this Agreement with
respect to the number of shares of Series B Preferred Stock that such Holder has so failed to transfer until such time, if any, as (y) such Holder shall have fully rescinded the transfer
of the shares of Series A Preferred Stock requiring the transfer of shares of Series B Preferred Stock that was not effected, or (z) such Holder transfers the shares of
Series B Preferred Stock in accordance with this Section 7(b) required to be so transferred. 

        5.    Tax Matters. The Company and each Holder acknowledge and agree that it is intended that the Series B Preferred
Stock not constitute "preferred stock" within the meaning of Section 305 of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations promulgated thereunder, and neither the
Company nor the Holders shall treat the Series B Preferred Stock as such. 

        6.    Binding Effect; Successor and Assigns; Joinder. 

        (a)  The
provisions of this Agreement shall be binding upon and accrue to the benefit of the parties hereto and their respective heirs, legal representatives, successors and,
assigns. Subject to the 

4

 

restrictions set forth in Section 4 hereof, each of the Holders may transfer or assign, in whole or in part, any of its rights and obligations hereunder to any Person;  provided that such transferee
executes and delivers a counterpart copy of this Agreement to the Company and each of the Holders thereby agreeing to be
bound by the terms and provisions set forth herein. 

        (b)  Any
Person who is or becomes a holder of Series A Preferred Stock may agree to become and shall be deemed a party to this Agreement upon the execution of a
joinder agreement, upon the execution of which such holder of Series A Preferred Stock shall have all rights, and shall observe all the obligations, applicable to a Holder as set forth in this
Agreement; provided that if such Person is a party to that certain Voting Agreement, dated September 6, 2000 (the "Voting Agreement"), upon such
Person becoming a party hereto, such Person shall be deemed to have amended Section 2(a) of the Voting Agreement so that reference to the right of Cirmatica to designate the persons who will
serve as the director designees of the Holders pursuant to the 2000 Stockholder's Agreement and the Series A Certificate of Designations shall also confer such rights to Cirmatica with respect
to the right to designate the persons who will serve as the director designees of the Holders pursuant to the Series B Certificate of Designations and this Agreement. Accordingly, the
definition of Holders shall include reference to such joining party. 

        7.    Amendment. 

        This
Agreement may be amended only by a written instrument signed by the parties hereto. 

        8.    Applicable Law. 

        The
laws of the State of New York shall govern the interpretation, validity and performance of the terms of this Agreement. 

        9.    Notices. 

        All
notices, requests, demands and other communications which are required or may be given under this Agreement shall be in writing and shall be deemed to have been duly given when
received, if personally delivered; when transmitted, if transmitted by telecopy, upon receipt of telephonic or electronic confirmation; the day after it is sent, if sent for next day delivery to a
domestic address by recognized overnight delivery service (e.g., Federal Express); and upon receipt, if sent by certified or registered mail, return
receipt requested. In each case notice shall be sent to: 

	(a)
	If
to the Company, addressed to: Scientific
Games Corporation

750 Lexington Avenue

25th Floor

New York, NY 10022

Attn: Secretary and General Counsel

Telecopy: (212) 754-2372

with
a copy to:

Kramer
Levin Naftalis & Frankel LLP

919 Third Avenue

New York, NY 10022

Attn: Peter Smith, Esq.

Telecopy: (212) 715-8000 

5

 

	(b)
	If
to Cirmatica, addressed to: Cirmatica
Gaming, S.A.

Rambla De Catalunya 16, 4o, 2a

Barcelona, Spain

Attention: Antonio Pisanelli

Telecopy: (01139) 02 621 3241

With
a copy to:  

Lottomatica
S.p.A.

via di Porta Latina, 8

00179 Rome, Italy

Attention: Rosario Bifulco

Telecopy: (01139) 0670453122

Latham &
Watkins

99 Bishopsgate

London EC2M 3XF

Attention: Michael S. Immordino, Esq.

Richard Trobman, Esq.

Telecopy: (01144) 2073744460 

or
at such other address as the party shall have specified by notice in writing to the other parties in accordance with this Section 9. 

        10.  Representations and Warranties. 

        The
Company represents and warrants to Cirmatica that (a) the Company has all requisite power and authority to execute and deliver this Agreement, to perform its obligations
hereunder and to consummate the transactions contemplated hereby, (b) the execution, delivery and performance by the Company of this Agreement and the consummation of the transactions
contemplated hereby have been duly authorized by all necessary action on the part of the Company, (c) this Agreement has been duly executed and delivered by the Company and is a legal, valid
and binding obligation of such party, enforceable against it in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium,
fraudulent conveyance and other similar laws and equitable principles now or hereafter in effect and affecting the rights and remedies of creditors generally, and (d) neither the execution and
delivery of this Agreement, nor the consummation of the transactions contemplated hereby, will violate, conflict with or result in a default or a breach under the Company's organizational documents or
any agreement, contract instrument or other arrangement to which the Company is bound or to which its securities is subject. 

        11.  Headings. 

        The
headings in this Agreement are for convenience of reference only and will not control or affect the meaning or construction of any provisions hereof. 

        12.  Entire Agreement. 

        This
Agreement, the Series B Certificate of Designations, the 2000 Stockholders' Agreement and the Series A Certificate of Designations constitute the entire agreement
among the parties with respect to the subject matter hereof and thereof. This Agreement and the Series B Certificate of Designations, the 2000 Stockholders' Agreement and the Series A
Certificate of Designations supersede all prior agreements and understandings, both oral and written, among the parties with respect to the subject matter hereof and thereof. This Agreement and the
Series B Certificate of Designations, the 2000 Stockholders' Agreement and the Series A Certificate of Designations is not intended to confer upon any Person other than the parties
hereto and thereto and their respective permitted assigns any rights or remedies hereunder or thereunder, except as expressly provided herein and therein. If it becomes necessary or appropriate to
execute and deliver a separate or additional instrument(s) in order to carry 

6

 

out the purposes and intent of this Agreement, the Company and each Holder agree to execute and deliver such further instrument(s) and to perform any additional acts as may be necessary or
appropriate in order to carry out the intent of the parties. 

        13.  Severability. 

        The
invalidity or unenforceability of any provisions of this Agreement in any jurisdiction will not affect the validity, legality or enforceability of the remainder of this Agreement in
such jurisdiction or the validity, legality or enforceability of this Agreement, including any such provision, in any other jurisdiction, it being intended that all rights and obligations of the
parties hereunder will be enforceable to the fullest extent permitted by law. 

        14.  Counterparts. 

        This
Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 

        15.  Remedies. 

        The
parties hereby acknowledge and agree that money damages would not be adequate compensation for the damages that a party would suffer by reason of a breach of this Agreement or a
failure of any other party to perform any of its obligations under this Agreement. Therefore, each party hereto agrees that in addition to and without limiting any other remedy or right it may have,
the non-breaching part will have the right to an injunction, temporary restraining order or other equitable relief in any court of competent jurisdiction enjoining any such breach and
enforcing specifically the terms and provisions hereof. 

7

 
(Signature page follows.)  

8

 

        IN WITNESS WHEREOF, the parties have executed this Supplemental Stockholders' Agreement as of the date first above written. 

	 	 	CIRMATICA GAMING, S.A.
	

 	
 	
By:	

 Name:

Title:
	

 	
 	
SCIENTIFIC GAMES CORPORATION
	

 	
 	
By:	

 Name:

Title:

9

QuickLinks

Exhibit 4.2

SUPPLEMENTAL STOCKHOLDERS' AGREEMENT

SUPPLEMENTAL STOCKHOLDERS' AGREEMENT

RECITALS

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