The AGEM Index reported a composite score of 158.64 in June 2013. After reporting month-to-month increases for three consecutive months, the index fell 8.84 points, or 5.3 percent, when compared with May. However, compared with a year ago, the index is up 33.59 points, or 26.9 percent. The index has reported monthly declines in four of the past 12 months. The latest performance is attributable to 11 of the 17 global gaming suppliers witnessing month-to-month declines in stock price in June. In addition, of the six manufacturers that reported monthly increases, the gains were relatively modest, with all but one up by less than 5 percent.
The broader stock markets performed slightly better than the AGEM Index in June, but each also reported monthly declines. NASDAQ ended the month with a closing value of 3,403.25, down 1.5 percent when compared with the end of May. The S&P 500 also declined 1.5 percent in June, falling to 1,606.28 by the end of the month. Meanwhile, the Dow Jones Industrial Average fell 1.4 percent to 14,909.60.
Selected positive contributors to the June2013 AGEM Index included the following:
• Ainsworth Game Technology (AGI) reported a stock price of AU$4.03 (up 8.9 percent), which contributed 0.26 points to the index.
• Scientific Games Corporation (SGMS) contributed 0.23 points, due to a 3.3 percent increase in stock price to $11.25.
• With a stock price of $17.71 (up 2.6 percent), SHFL entertainment (SHFL) contributed 0.19 points.
Selected negative contributors included the following:
• Konami (KNM) contributed negative 3.04 points, due to a 13.6 percent decline in stock price to $21.15.
• GTECH S.p.A. (GTK) reported a stock price of €19.23, which was down 7.5 percent and contributed negative 2.71 points.
On April 30, online gaming in Nevada officially became a reality when Ultimate Gaming launched its real money online poker site. The company, which is majority-owned by Station Casinos and is partnered with the Ultimate Fighting Championship (UFC), is currently the only operator in the United States with a regulated online gaming site. The site, UltimatePoker.com, has dealt more than 6 million hands since it went live.
Ultimate Gaming also recently announced plans to enter the New Jersey market, which legalized online gaming earlier this year. The company entered into an agreement with Trump Taj Mahal Associates to operate sites that will offer poker, as well as full casino games. Ultimate Gaming will manage the websites.
The remaining casinos in Atlantic City also met the state’s June 30 deadline to find a website technology partner in order to launch their own online gaming sites. Notable partnerships include Caesars Entertainment and 888 Holdings. Caesars operates four casinos in Atlantic City, and the two companies have already worked together to bring their World Series of Poker websites to Europe. In addition, Boyd Gaming, which is an owner and the operator of Borgata, has partnered with Bwin.party to launch their site in New Jersey.
Perhaps most notable is the partnership between PokerStars and Resorts Casino Hotel. New Jersey is currently the only opportunity for PokerStars to enter the regulated online gaming market, due to Nevada’s “bad actor” clause. The clause states that any companies that continued to accept wagers from gamblers in the United States after the passage of the Unlawful Internet Gambling Enforcement Act in 2006 would have to wait 10 years until they can be licensed. PokerStars is included on this list. However, after a judge denied the sale of The Atlantic Club Casino to PokerStars’ parent company, the Rational Group, it was unclear whether the operator would find a New Jersey casino partner in time.
Now that the casinos have their partnerships in place, they will have until July 29 to submit applications to the Division of Gaming Enforcement. After that, the Casino Control Commission wants to have sites live by Thanksgiving.
Once online gaming sites in New Jersey go live, some believe it will become a much more lucrative market than Nevada. Analysts project Nevada’s online gaming market will bring in between $50 million to $250 million in annual revenue, while New Jersey is likely to receive $500 million to $1 billion annually. Regardless of playing volume, the latest moves demonstrate the evolution of the industry and rapid technological advancements.