LAS VEGAS, NV--(Marketwired - May 8, 2013) - In April 2013, the AGEM Index reported a month-to-month increase for the second consecutive month, with a composite score of 159.45 points, up 8.44 points, or 5.6 percent, when compared to March 2013. Compared to the same month a year ago, the index is up a more dramatic 26.05 points (19.5 percent). The AGEM Index has now reported monthly increases in eight of the past 12 months. The latest performance is primarily due to 13 of the 17 global gaming manufacturers reporting month-to-month increases in stock price in April. Of the four manufacturers reporting declines in valuations, just one, Transact Technologies (TACT), reported a decline of more than five percent. 

Each of the broader stock markets reported increases in April of 2013 when compared to March 2013. The Dow Jones Industrial Average reported a closing price of 14,839.80, up 1.8 percent from the prior period. The S&P 500 also reported a month-to-month increase of 1.8 percent, rising to 1,597.57. Meanwhile, NASDAQ reported the greatest increase of the three, rising 1.9 percent to 3,328.79.

The gaming equipment manufacturer sector's performance in April outpaced the broader equities' markets. Selected positive contributors to the April 2013 AGEM Index included the following:

  • With a stock price of $22.70 (up 13.9 percent), Konami (KNM) contributed 2.95 points. 
  • Lottomatica (LTO) reported a 5.6-percent increase in stock price to EUR 19.36 and contributed 1.85 points.
  • Due to a stock price of AU$3.94 (up 7.7 percent), Aristocrat Technologies (ALL) contributed an additional point to the composite index.

Selected negative contributors included the following:

  • SHFL Entertainment (SHFL) contributed negative 0.27 points due to a 4.7-percent decline in stock price to $15.80.
  • With a stock price of $9.99 (down 4.9 percent), Daktronics (DAKT) contributed negative 0.13 points.
AGEM   Exchange: Symbol   Stock Price At Month End   Percent Change   Index
(Currency)   Apr-13   Mar-13   Apr-12   Prior Period   Prior Year   Contribution
Ainsworth Game Technology   ASX: AGI (AU$)   3.81   3.59   1.78   6.13   114.04   0.44
Aristocrat Technologies   ASX: ALL (AU$)   3.94   3.66   3.05   7.65   29.18   1.00
Astro Corp.   Taiwan: 3064 (NT$)   38.75   37.90   50.60   2.24   (23.42)   0.03
Bally Technologies   NYSE: BYI (US$)   53.28   51.97   48.55   2.52   9.74   0.36
Daktronics, Inc.   Nasdaq: DAKT (US$)   9.99   10.50   8.14   (4.86)   22.73   (0.13)
Gaming Partners International   Nasdaq: GPIC (US$)   8.64   8.66   6.75   (0.23)   28.00   (0.00)
Global Cash Access   NYSE: GCA (US$)   7.13   7.05   8.45   1.13   (15.62)   0.04
IGT   NYSE: IGT (US$)   16.95   16.50   15.58   2.73   8.79   0.80
INTRALOT S.A.   ATHEX: INLOT ((()   2.08   1.83   0.77   13.66   171.90   0.41
Konami   NYSE: KNM (US$)   22.70   19.93   29.03   13.90   (21.81)   2.95
Lottomatica (GTECH)   MILAN: LTO.MI ((()   19.36   18.33   13.98   5.62   38.48   1.85
Multimedia Games   Nasdaq: MGAM (US$)   24.66   20.87   11.36   18.16   117.08   0.84
Scientific Games Corporation   Nasdaq: SGMS (US$)   8.88   8.75   10.16   1.49   (12.60)   0.07
SHFL Entertainment   Nasdaq: SHFL (US$)   15.80   16.57   17.67   (4.65)   (10.58)   (0.27)
Transact Technologies   Nasdaq: TACT (US$)   7.51   7.94   8.56   (5.42)   (12.27)   (0.02)
Wells-Gardner Electronics   AMEX: WGA (US$)   2.12   2.06   2.05   2.91   3.41   0.00
WMS Industries   NYSE: WMS (US$)   25.38   25.21   24.51   0.67   3.55   0.06
         Change in Index Value    8.44
         AGEM Index Value: March 2013    151.01
         AGEM Index Value: April 2013    159.45

A number of states are considering bills that would expand gambling within their borders. In Texas, Senator John Carona filed Senate Joint Resolution 64. If passed, the bill would create a Texas Gaming Commission, as well as allow three licenses for casinos in counties with more than 1.5 million people, three casino licenses on barrier islands in the Gulf of Mexico and authorize the state's three federally licensed Indian tribes in Livingston, El Paso and Eagle Pass to build casinos on their land. In addition, three licenses would be awarded for casinos at the class one race tracks and nine licenses for slots or casinos at the lower-tier race tracks.

Since passage of the bill would require a constitutional amendment, it is required to obtain approval from two-thirds of the legislature as well as earn a majority vote from the public. However, the proposal remains in the Senate Business and Commerce Committee, which it must pass before moving on to the legislature. Such an approval remains uncertain at this juncture.

If approved, the gaming sector in Texas could have significant economic impacts. According to a study released by the Texas Association of Business, it could create 74,000 jobs, $3.4 billion a year in salaries and wages and $11.8 billion in annual economic activity. The state would also be expected to benefit from an estimated $1.2 billion in annual revenues, $945 million a year in direct gaming taxes and $260 million a year in indirect taxes. As currently proposed, approximately 85 percent of the revenues would go to the state's property tax relief fund, five percent would go to city and county governments and ten percent would fund treatment for compulsive gamblers.

In Illinois, a bill that would allow for five new casinos within the state, as well as an additional 1,200 slots at existing race tracks, recently passed the state Senate and is now awaiting approval from the House. If approved, the five casinos would be located in Chicago, Rockford, Danville, Lake County and the south Chicago suburbs. According to the Commission on Government Forecasting and Accountability, it is estimated expanded gambling in the state will result in about $268 million in annual revenues - $128 million of which would go to funding education, $50 million to the Gaming Board, and the remainder would be used for economic development and agricultural programs. Governor Pat Quinn vetoed previous proposals due to ethical concerns. The latest bill addresses these concerns by giving the Control Board authority over the Chicago casino and banning licensees from making political contributions.

Proposed gaming expansion bills are being considered in a number of other states as well, but with many facing an uphill climb, their fates remain uncertain. However, if approved, new gaming opportunities potentially benefit gaming equipment manufacturers.

The AGEM Index
The Association of Gaming Equipment Manufacturers (AGEM) produces the monthly AGEM Index that comprises 17 global gaming suppliers throughout the world. A total of 12 suppliers are based in the United States and are listed on the NYSE, Nasdaq, or AMEX, while two trade on the Australian exchange, one supplier trades on the Athens exchange, one trades on the Milan exchange, and another trades on the Taiwan OTC exchange. The index is computed based on the month-end stock price (adjusted for dividends and splits) of each company and weighted based on approximation of market capitalization. Market capitalizations for manufacturers trading on foreign exchanges have been converted to US dollar-equivalents as of month-end for comparability purposes. The AGEM Index is based on a 100-point value as of January 2005.

About AGEM
AGEM is an international trade association representing manufacturers of electronic gaming devices, systems, and components for the gaming industry. The Association works to further the interests of gaming equipment manufacturers throughout the world. Through political action, tradeshow partnerships, information dissemination and good corporate citizenship, the members of AGEM work together to create benefits for every company within the organization. Together, AGEM and its member organizations have assisted regulatory commissions and participated in the legislative process to solve problems and create a positive business environment.

AGEM Index
The AGEM index and overview is prepared by Applied Analysis (AA). AA is a Nevada-based advisory services firm providing consultation services for public and private entities. The company utilizes extensive experience in economics, information technology and finance to provide a wide range of services, including urban economic consulting, financial advisory services, market analysis, public policy analysis, hospitality industry and gaming consulting, and information system and technology consulting.

AGEM Membership Roster

AGEM Gold Members:

  • Aristocrat Technologies
  • Aruze Gaming America
  • Austrian Gaming Industries
  • Bally Technologies
  • International Game Technology (IGT)
  • Intralot S.A.
  • Konami Gaming
  • Lottomatica/ GTECH / Spielo International
  • Scientific Games Corporation
  • SHFL Entertainment
  • Video Gaming Technologies (VGT)
  • WMS Gaming

AGEM Silver Members: Action Gaming, American Gaming Systems (AGS), Casino Technology, Gaming Partners International USA, JCM Global, MEI, Multimedia Games, Ortiz Machines Company, Suzo-Happ Group, TCSJohnHuxley, Wells-Gardner Electronics and Zitro.

AGEM Bronze Members: Abbiati Casino Equipment, Ainsworth Game Technology, Alfastreet, Astro Corp., Bingotimes Digital Technology, Cadillac Jack, Cammegh Limited, Cantor Gaming, CastNET, Cole Kepro International, Crane Payment Solutions/ CashCode/ Money Controls, Diamond Game, DigiDeal, Euro Games Technology (EGT), Galaxy Gaming, Gaming Support, Glory (U.S.A) Inc., Incredible Technologies, Inspired Gaming, Interblock USA, ISMS, Iverson Gaming Systems, JPM International, Jumbo Technology, Matsui Gaming Machine Co., Modern Gaming, Patriot Gaming & Electronics, Quixant Ltd., Reel Games and Table Trac.

AGEM Associate Members: 3M Touch Systems, Advantech-Innocore, Arrow International, Assurance Ltd., BBIN, British Group Interactive (BGI), Brown & Brown Insurance of Nevada, Carmanah Signs, Casino Enterprise Management, Cooper Levenson, Cybertec Gaming Systems, Daktronics, Digital Instinct, DiTronics Financial Services, DynaGraphic Printing, Elite Casino Products, Esterline Interface Technologies, EWA Cyber Security, Eurocoin, Flextronics, Fox Rothschild, FutureLogic, Gaming Capital Group, Gary Platt Manufacturing, Gemaco Inc., Genesis Interactive Technologies, Global Cash Access, Global Experience Specialists (GES), Global Gaming Group (G3), Grand Products Nevada, Greenberg Traurig, Hanco Technologies, Howard & Howard, IDX, Impact LCD, Intel, International Network in Advance Gaming (INAG), IPS, James Industries, JCS Technologies, KEY-BAK, Kontron, Leap Forward Gaming, Lewis & Roca, Lincoln Industries, Litemax Technology, Metalcraft, Outpost Creative, Phelps Dunbar, Portwell, Proforma GPS, Rainmaker, Reel TV, Regulatory Management Counselors (RMC), Renewable Creative, Rye Park Gaming, SCA Gaming, Southwest Fabricators, Spin Games, Strategy9, StylGame USA, Talent Associates, The Bright Group, Tournament One, TOVIS, TransAct Technologies, Veridocs, Wrex Products and Young Electric Sign Company (YESCO).

Contact Information:

For More Information, Contact:
Marcus Prater
AGEM Executive Director
(702) 812-6932