Market Overview

Association of Gaming Equipment Manufacturers (AGEM) Releases October 2017 Index


LAS VEGAS, Nov. 08, 2017 (GLOBE NEWSWIRE) -- During the latest period, seven of the 12 global gaming equipment manufacturers reported month-to-month increases in stock price. One manufacturer saw no change in its stock price, while four manufacturers reported decreases in stock price during the month, with one posting double-digit declines.The AGEM Index experienced significant gains for the second month in a row during October 2017. The composite index closed the month at 475.35 points, a gain of 17.44 points or 3.81 percent, when compared to September 2017. The AGEM Index reported a year-over-year increase for the 25th consecutive month and has climbed 153.45 points, or 47.67 percent, since October 2016.

Association of Gaming Equipment Manufacturers
Association of Gaming Equipment Manufacturers (AGEM) Releases October 2017 Index

Association of Gaming Equipment Manufacturers
Association of Gaming Equipment Manufacturers (AGEM) Releases October 2017 Index

The three broader stock market indexes produced exceptional results in October. The S&P 500 reported a month-to-month increase of 2.22 percent to 2,575.26. The Dow Jones Industrial Average increased 4.34 percent to 23,377.24, while the NASDAQ increased 3.57 percent during the period to 6,495.

Selected positive contributors to the October 2017 AGEM Index included the following:

  • Aristocrat Leisure Limited (AX:ALL) contributed 14.90 points due to a 12.14 percent increase in stock price from $21.00 to $23.55.
  • Crane Co. (CR) reported a 3.91 percent increase in stock price to $83.12 and contributed 2.63 points.
  • Scientific Games Corporation (SGMS) contributed 2.21 points due to a 3.82 percent increase in stock price to $47.60.

Selected negative contributors included the following:

  • With its stock price falling 4.28 percent to $23.50, International Game Technology PLC (IGT) contributed negative 2.77 points.
  • Ainsworth Game Technology (AX:AGI) reported a 10.59 percent decrease in stock price to AU$2.28, contributing negative 1.00 point.

Infographics accompanying this release are available at

During October, several meaningful events occurred related to gaming manufacturing. Below is a summary of the recent regulatory expansion in Pennsylvania, along with the top-line results from Crane Co.

Pennsylvania Governor Tom Wolf signed legislation on October 30 authorizing a major gaming expansion, making Pennsylvania the only state to allow online play for both commercial casinos and its state lottery.

The legislation allowed for the creation of 10 "mini-casinos," which are required to be 25 miles away from the nearest casino that is not owned by the same entity. Municipalities have until January 1, 2018, to prohibit a new casino within their jurisdiction. This prohibition may be lifted afterward, but may not be reinstated. Ten of the 12 existing casinos are eligible to bid for a mini-casino license starting at $7.5 million for slots-only and $10.0 million for slots and tables.

The legislation includes provisions for fantasy sports contests, interactive gaming, sports wagering, slot machines at non-primary locations, video gaming, multi-use gaming devices in qualified airports, casino simulcasting at Category 2 and Category 3 facilities, the operation of multistate wide-area progressive slot machines, and hybrid slot machines and skill slot machines.

Category 1 licensees may make slot machines available at up to four non-primary locations with up to 250 machines at each location. The tax rate on non-primary locations will be set at 50 percent of revenue.

VGT licensing would allow up to five VGT's per licensed establishment, with 10 allowed at truck stops, which are broadly defined and may include almost any convenience store. The proposed tax rate is 37.5 percent of gross revenue. There are approximately 13,500 establishments eligible for a video gaming license.

Slot machine licensees will be authorized to conduct interactive gaming after paying a $2 million one-time fee. Interactive gaming revenues will be effectively taxed at 19 percent of gross revenue.

In its third quarter financial results, Crane Co. reported a robust quarter as year-over-year earnings increased by 8 percent, driven by both increased profit in its Payment & Merchandising Technologies segment and lower corporate costs. Operating profit in the third quarter of 2016 also included a $5.0 million legal settlement charge.

The AGEM Index
The Association of Gaming Equipment Manufacturers (AGEM) produces the monthly AGEM Index that comprises 13 global gaming suppliers throughout the world. A total of 8 suppliers are based in the United States and are listed on the NYSE, Nasdaq or OTC market, while two trade on the Australian exchange, one supplier trades on the Athens exchange, one on the Tokyo 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, lotteries, 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.

For More Information, Contact:
Marcus Prater, Executive Director
P.O. Box 50049, Henderson, NV 89016-0049
702.812.6932 |

AGEM Membership Roster

AGEM Gold Members:

  • AGS
  • Ainsworth Game Technology
  • Aristocrat Technologies
  • Everi Holdings Inc.
  • International Game Technology PLC (IGT)
  • Konami Gaming
  • Merkur Gaming
  • Scientific Games
  • Sega Sammy Creation

AGEM Silver Members: Action Gaming, Aruze Gaming America, Casino Technology, Crane Payment Innovations (CPI), Gaming Partners International (GPI), JCM Global, NYX Gaming Group, Ortiz Gaming, Quixant PLC, Suzo-Happ Group, TCSJohnHuxley, William Hill US and Zitro.

AGEM Bronze Members: Abbiati Casino Equipment, Alfastreet, Amatic Industries, APEX gaming, Astro Corp., BetConstruct, Bingotimes Digital Technology, Boss Gaming, Cammegh Limited, Century Gaming Technologies, CG Technology (CGT), Cole Kepro International, Euro Games Technology (EGT), Exacta Systems, FBM, Galaxy Gaming, Gamblit Gaming, GameCo, Gaming Arts, Gaming Support, Glory Global Solutions, Grand Vision Gaming, Incredible Technologies, Inspired Gaming, Interblock USA, Intervision Gaming, ISMS, Jumbo Technology, Matsui Gaming Machine Co., Metronia, PariMAX, Patriot Gaming & Electronics, Spintec, Table Trac, Vantiv Entertainment Solutions, Wells-Gardner Technologies and Win Systems.

AGEM Associate Members: 3M Touch Systems, Adlink Technology, Advantech-Innocore, Agilysys, AMD, ArdentSky, Arrow International, Asimex Global, Atrient, Automated Cashless Systems, Automated Systems America, Inc. (ASAI), Axiomtek, British Group Interactive (BGI), Camryn Industries, CardConnect, Carmanah Signs, Casino Connection International, Casino Screens, Catapult Global, CDC Gaming Reports, CMC Trading Engineering, Cooper Levenson, Digital Gaming Corporation, Digital Instinct, DiTronics Financial Services, Duane Morris LLP, EFCOtec Corporation, Eilers & Krejcik Gaming, Elite Gaming Technology, Esterline Interface Technologies, Fantini Research, Finnegan, Henderson, Farabow, Garrett & Dunner, Fox Rothschild, G2 Game Design, Gambling Compliance, Gaming and Entertainment Touch Technology, Gaming Capital Group, GAN, Ganlot, Gary Platt Manufacturing, Genesis Interactive Technologies, GeoComply USA, Global Gaming Group (G3), Greenberg Traurig, House Advantage, Howard & Howard, Impact Display Solutions, Intel, IPS, James Industries, James Industry Research Group, JCS Technologies, Jones Walker, KEY-BAK, Kontron, Lazcano Sámano, Lewis Roca Rothgerber Christie, Lightstone Solutions, Majestic Realty, NanoLumens, Olsen Gaming / Spectronix, Outpost Creative, Passport Technology, Patir Casino Seating, Portilla Ruy-Díaz y Aguilar, Proforma GPS, Regulatory Management Counselors (RMC), RMMC, RSM US LLP, SAP, SCA Gaming, Sightline Payments, Skilled Game Development, Slot Constructor, Southco, Southwest Manufacturing Services, Spin Games, StylGame USA, Taft Stettinius & Hollister, Talent Associates, The Bright Group, Touch Dynamic, Touch Embedded Solutions, Tournament One, TOVIS, TraffGen USA, TransAct Technologies, Veridocs, Wells Fargo, Young Electric Sign Company (YESCO) and Zebra Technologies.

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