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Association of Gaming Equipment Manufacturers (AGEM) Releases May 2018 Index

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LAS VEGAS, June 07, 2018 (GLOBE NEWSWIRE) — The AGEM Index continued to grow positively in May 2018, building upon last month’s encouraging trends. The composite index finished the month at 554.05 points, a gain of 22.72 points or 4.28 percent, compared to April 2018. The AGEM Index reported a year-over-year increase for the 32nd consecutive month and has climbed 163.87 points, or 42.00 percent, since May 2017.

During the latest period, seven of the 13 global gaming equipment manufacturers reported month-to-month increases in stock price. Six manufacturers reported decreases in stock price during the month.

The April performance of the AGEM Index paralleled the three major stock market indexes. The S&P 500 reported a month-to-month increase of 2.16 percent to 2,705.27. The Dow Jones Industrial Average increased 1.05 percent to 24,415.84, while the NASDAQ increased 5.32 percent during the period to 7,442.12.

Positive contributors to the May 2018 AGEM Index included the following:

  • Aristocrat Leisure Limited (ASX:ALL) contributed 24.94 points due to a 12.01 percent increase in stock price to AU$30.04.
  • Scientific Games Corporation (SGMS) reported an 11.26 percent increase in stock price to $59.30, contributing 8.34 points.

Selected negative contributors included the following:

  • With its stock price falling 11.78 percent to $24.94, International Game Technology PLC (IGT) contributed negative 8.25 points.
  • Konami Corp. (TYO:9766) reported a 5.02 percent decrease in stock price to ¥5,110, contributing negative 3.99 points

Infographics accompanying this announcement are available at:

http://www.globenewswire.com/NewsRoom/AttachmentNg/1a7d82a9-872e-4ac4-81df-f6241262ae80

http://www.globenewswire.com/NewsRoom/AttachmentNg/456cf91e-6c5d-4db6-8c4f-85508ef4bc16

During the past month, Agilysys (AGYS) released results for its fiscal year ending in March 2018. Net revenues decreased by 0.2 percent from the prior year, dropping $318,000 to $127.4 million. Gross profit increased by $632,000, or 1.0 percent. The increase in gross profit is attributable to a $950,000 decrease in the company’s cost of goods sold.  During this fiscal year, the company achieved a gross profit margin of 50.6 percent, up from 50.0 percent in the prior year.

TransAct Technologies (TACT) released its first quarter results for the three months ending March 2018. During this period, net sales decreased $1.8 million, or 12.9 percent, on a year-over-year basis to $12.2 million. Despite the significant drop in net sales, gross profit margins improved substantially on a year-over-year basis. For the first quarter of 2018, the company’s gross profit margin was 47.9 percent, up from 43.5 percent for the same period last year. In May, the company reached an agreement with Asia Pioneer Entertainment Limited to distribute TransAct’s ticket-in, ticket-out printers in Macau, the Philippines, Taiwan and China.

Gaming Partners International Corporation (GPIC) also released its quarterly results for the period ending March 2018. Revenues decreased by 1.2 percent on a year-over-year basis, dropping from $18.9 million to $18.7 million. Additionally, gross profits decreased from $5.8 million to $4.9 million, a 15.2 percent decline. As a consequence of this decline, the company’s gross profit margin also fell to 26.4 percent to 30.8 percent. Operating income fell dramatically during this period due to a substantial uptick in research and development expenses. Research and development expenses increased from $300,000 for this period last year to $1.0 million this year. This increase was due to payments made to BrainChip Holdings Limited and Xuvi, LLC for the joint development of a table management and analytics platform. This platform will be designed to improve the efficiency of table games, reduce the risk of fraudulent behavior and provide player behavior analysis.

Since its initial public offering, PlayAGS Inc. (AGS) has delivered strong financial performance, as demonstrated by the company’s financial results for the first quarter since it completed the offering. On a year-over-year basis, total revenues increased 35.8 percent, growing from $47.8 million to $64.9 million. Operating income, however, remained largely flat due to a $17.0 million increase in operating expenses, which largely consisted of a $6.5 million year-over-year increase in selling, general and administrative costs, a $3.5 million year-over-year increase in cost of equipment sales and a $3.3 million year-over-year increase in research and development expenses. Additionally, the stock has been so popular that the company completed a secondary public offering in May 2018.

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 eight 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 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.

AGEM Membership Roster

AGEM Gold Members: AGS, Ainsworth Game Technology, Aristocrat Technologies, Everi, International Game Technology (IGT), Konami Gaming, Merkur Gaming, NOVOMATIC Group, Scientific Games and Sega Sammy Creation
AGEM Silver Members: Action Gaming, Aruze Gaming America, Betson Enterprises, Casino Technology, Crane Payment Innovations (CPI), Gaming Partners International (GPI), Inspired Gaming, JCM Global, Ortiz Gaming, Quixant PLC, Suzo-Happ Group, TCSJohnHuxley, TransAct Technologies, William Hill US and Zitro
AGEM Bronze Members: Abbiati Casino Equipment, Alfastreet, Amatic Industries, APEX gaming, Astro Corp., BetConstruct, Bingotimes Digital Technology, Cammegh Limited, Century Gaming Technologies, Ceronix / GETT, CG Technology (CGT), Cole Kepro International, DR Gaming Technology (DRGT), Euro Games Technology (EGT), Exacta Systems, FBM, Galaxy Gaming, Gamblit Gaming, GameCo, Gaming Arts, Gaming Support, Glory Global Solutions, Grand Vision Gaming, Incredible Technologies, Interblock USA, Intervision Gaming, Jackpot Digital, Jumbo Technology, Matsui Gaming Machine Co., Metronia, PariMAX, Patriot Gaming & Electronics, PDS Gaming, RCT Gaming, 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), Capco, CardConnect, Carmanah Signs, Casino Screens, Catapult Global, CDC Gaming Reports, CMC Trading Engineering (International) Ltd, Comer Holdings, Comtrade Gaming, Cooper Levenson, Deloitte LLP, Digital Instinct, DiTronics Financial Services, Dominode, Duane Morris LLP, E4 Gaming, EFCOtec Corporation, Eilers & Krejcik Gaming, Elite Gaming Technology, Fantini Research, Finnegan, Henderson, Farabow, Garrett & Dunner, Fox Rothschild, G2 Game Design, Gambling Compliance, Gamesman, Gaming Capital Group, Gaming Specialized Logistics, GAN, Ganlot, Gary Platt Manufacturing, Gasser Chair Company, Genesis Interactive Technologies, GeoComply USA, GET IN Global, Global Gaming Group (G3), Global Gaming Business (GGB) Magazine, Greenberg Traurig, House Advantage, Howard & Howard, Impact Display Solutions, Intel, IPS, James Industries, James Industry Research Group, Jones Walker, JP Morgan Chase, KEY-BAK, Kiron Interactive, Kontron, Lazcano Sámano, Lewis Roca Rothgerber Christie, Lightstone Solutions, Majestic Realty, Millennial Esports, NanoLumens, Olsen Gaming / Spectronix, Outpost Creative, Passport Technology, Patir Casino Seating, Plus Studios, Portilla Ruy-Díaz y Aguilar, Proforma GPS, Regulatory Management Counselors (RMC), Rising Digital, RMMC, RSM US LLP, SAP, SCA Gaming, Shenzhen General Lottery Technology Co., Sightline Payments, Skilled Game Development, Slot Constructor, Southco, Southwest Manufacturing Services, Spin Games, StylGame USA, Taft Stettinius & Hollister, Talent Associates, The Bright Group, The United States Playing Card Company, Touch Dynamic, Touch Embedded Solutions, Tournament One, TOVIS, TraffGen USA, Veridocs, Wells Fargo, Young Electric Sign Company (YESCO) and Zebra Technologies

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

Source: European Gaming Media and Events

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Lotto Warehouse strikes landmark deal with Betsson

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The Betsson family of brands will soon offer its customers access to the world’s biggest and best lottery jackpots, perfectly complementing their extensive portfolio of Sports Betting, Casino, Poker, Bingo and other games.

This deal is truly a significant one for Lotto Warehouse as it sees the Nasdaq Stockholm listed company, and one of the largest companies within the European iGaming industry, embracing the potential of the lottery vertical.

Lotto Warehouse CEO Thomas Biro said: “Betsson are a hugely respected operator and we are pleased they saw the great potential of our offering.”

“We wanted to revolutionise one of the oldest gaming industries whilst giving players the opportunity to dream big. Today’s players are discerning ones – they want choice and they want customization. Lotto Warehouse offers all that and more by breaking down borders and offering the world’s biggest lotteries in one place.”

Mark Adams, General Counsel for The Multi Group, “Absolutely delighted that we have reached an agreement to provide services to Betsson Group. Both the legal and commercial teams have done an outstanding job to bring this deal together.”

Joey Hurtado, Head of Gaming for Betsson Group added: “After a thorough search and review of different lottery providers, we felt that Lotto Warehouse’s great UI, excellent offering and outstanding business models were the best fit for Betsson Group and our players.”

Lotto Warehouse are a B2B Lottery Betting provider for the iGaming industry. They are licensed by both the Malta Gaming Authority and the British Gambling Commission and offer operators the chance to add a catalogue of the world’s biggest lottery betting products to their platforms, with all higher tier payouts protected by their unique jackpot indemnity insurance model. They are a subsidiary of New York Stock Exchange listed online sports lottery service provider 500.com (NYSE: WBAI) and their extensive client list now also proudly includes Betsson.

If you too want to learn more about this exciting new vertical that you can offer your customers, why not set up a meeting with Lotto Warehouse at Sigma by email to info@lottowarehouse.com. It’s time to let your customers dream big!

Source: Latest News at European Gaming Media

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UK Gambling Commission appoints Dr Anna van der Gaag as Chair of the Responsible Gambling Strategy Board

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UK Gambling Commission appoints Dr Anna van der Gaag as Chair of the Responsible Gambling Strategy BoardReading Time: 2 minutes

 

Dr. Anna van der Gaag CBE has been appointed as the new Chair for the Responsible Gambling Strategy Board (RGSB) – the Gambling Commission’s expert advisors on the research, education and treatment required to reduce gambling-related harms.

Anna will join RGSB as a member with immediate effect and will take on the role of Chair to succeed Sir Christopher Kelly, whose term as RGSB chair comes to an end in March 2019. Anna is a Visiting Professor of Ethics and Regulation at the University of Surrey and she’s held regulatory roles in the health, social care and legal sectors. Anna also has a particular interest in how regulators can be proactive in the prevention of harm.

Bill Moyes, Gambling Commission Chair said: “It is with pleasure that we announce Dr Anna van der Gaag as the new Chair of RGSB. She brings with her a wealth of experience in health, social care and the prevention of harm that will be an asset in advising on how to implement the next National Strategy, which will launch in April 2019 and on which we will shortly be consulting.”

Dr Anna van der Gaag, speaking about her appointment said: “Gambling-related harms are increasingly recognised as a public health issue requiring robust collective action. I am thrilled by this opportunity to join a team with such a passionate commitment to understanding and reducing harms and raising awareness of the personal and societal costs that can arise from gambling activities.”

Sir Christopher Kelly said: “I am delighted to welcome Dr Anna van der Gaag as my successor. Anna’s strong background in research and regulation provides a solid foundation to provide authoritative advice on the next strategy and to achieve our aim – to reduce the impact of gambling-related harms, especially among the most vulnerable.”

Formerly Chair of the Health and Care Professions Council, she is a non-executive director at Health Education England and the Kent Surrey and Sussex Academic Health Science Network and a founding member of the Q Community, a quality improvement network led by the Health Foundation. She was awarded the CBE for services to health and care in 2015.

Source: Latest News at European Gaming Media

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Zeal Network SE Announces Takeover Offer For Germany’s Largest Private Digital Lottery Broker Lotto24 AG

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Zeal Network SE Announces Takeover Offer For Germany’s Largest Private Digital Lottery Broker Lotto24 AGReading Time: 5 minutes

 

  • The transaction will create a digital lottery group with currently more than 5 million combined customers globally, current combined billings of about EUR 500 million, and a diverse international footprint
  • The combined group will build on the existing position of Lotto24, discontinue the German secondary lottery business of Tipp24 and transform it to a locally licensed online broker. The companies jointly aim to accelerate growth of online brokerage in the EUR 8.7 billion German lottery market
  • The all-share takeover delivers significant benefits for shareholders with expected cost synergies of EUR 57 million per year, strong future cash generation, and a reduced risk profile
  • The transaction strengthens the German lottery market and returns to federal states and their lottery beneficiaries
  • ZEAL expects to offer one new ZEAL share for ca. 1.6 Lotto24 shares, reflecting the ratio of the volume-weighted average prices of ZEAL and Lotto24 shares over the past three months
  • ZEAL has secured irrevocable commitments to accept the offer from major shareholders representing approximately 65% of Lotto24 shares

 

ZEAL Network SE (“ZEAL”) announced an all-share voluntary takeover offer for Germany’s largest private digital lottery broker, Lotto24 AG (“Lotto24”). On completion, the transaction will create a digital lottery group with currently more than 5 million combined customers globally, current combined billings of about EUR 500 million, and a diverse international footprint.

In the context of the deal, and consistent with its renewed strategy to de-risk its business model and focus on locally-licensed businesses, ZEAL intends to transform its German secondary lottery business into a locally licensed online brokerage model after reacquiring control of its myLotto24 and Tipp24 subsidiaries and, in due course, to relocate ZEAL to Germany. The transaction will significantly strengthen the German lottery market and expand returns to federal states and their lottery beneficiaries.

 

A strong platform for accelerated growth and shareholder value creation

The transaction combines the strong balance sheet, high-quality loyal customer base, and technological capabilities of ZEAL with the proven expertise of Lotto24 in the German lottery brokerage market. The enlarged Group will be in a unique position to accelerate online brokerage growth in the German lottery market.

The Group will also continue to pursue its international growth ambitions, building on the existing, diverse international portfolio (UK, Ireland, Spain, Norway, and Netherlands) and global development pipeline of ZEAL, with the aim of creating long-term growth and sustained shareholder and customer value.

ZEAL believes that the change to its business model in Germany will deliver significant benefits to ZEAL shareholders in the medium term as a result of reduced operational, tax and regulatory risk as well as improved growth potential. As part of the business model change, ZEAL has taken the decision to discontinue certain products and to focus on less volatile brokerage income in the German market, resulting in net annual run-rate revenue dis-synergies of ca. EUR 107 million, which is expected to be compensated for over time through accelerated growth of the enlarged Group. The combination with Lotto24 is also expected to deliver annual run-rate cost synergies of c. EUR 57 million through greater platform efficiencies and significant reductions in other operational costs. Further details of these revenue dis-synergies and cost savings are set out in Appendix A to this announcement.

In addition, ZEAL management has identified further cost savings of approximately EUR 4 million, which do not arise as a consequence of the transaction and sees additional potential future upside.

 

Dr Helmut Becker, CEO of ZEAL, said:“ZEAL will reunite with Germany’s largest digital lottery broker. We will have a significantly enlarged, loyal customer base, strong technology and marketing platforms, and an exceptionally experienced team. Together with our plans to regain control of Tipp24 and transform its German business models, this puts us in an excellent position to accelerate online growth in both the EUR 8.7 billion German lottery market and EUR 270 billion global lottery sector – as a locally-licensed broker, licensed operator, and lottery investor. This transaction is good for shareholders, good for customers, and good for the German federal states and their lottery beneficiaries. We have held initial, constructive conversations with Lotto24 and look forward to further engaging with the management to achieve a successful combination of the businesses. We also look forward to a successful and constructive cooperation with Germany’s state lotteries and invite all shareholders to join us on this journey.”

 

Since its IPO on the Frankfurt Stock Exchange in 2012, Lotto24 has grown rapidly. In 2017, Lotto24 generated billings of EUR 220.7 million and revenues of EUR 25.2 million. In October 2018, Lotto24 upgraded its full year guidance, anticipating billings’ growth of between 38% and 43% for 2018. In the first nine months of 2018, the company increased billings by 43% to EUR 235.9 million, revenues grew almost 50% to EUR 28.1 million, and the total number of registered customers rose by 36% to 2.04 million.

ZEAL has nearly two decades’ experience as an online lottery operator, reseller and investor. In 2017, ZEAL delivered billings of EUR 280.5 million and revenues of EUR 134.3 million. In the first nine months of 2018, billings increased 5% to EUR 212.4 million, revenues rose by 19% to EUR 111.2 million, and the number of new customers grew by 54%, taking the total number of registered customers of the Group to more than 3.5 million.

 

Transaction supported by major Lotto24 shareholders

ZEAL will offer Lotto24 shareholders the opportunity to exchange their Lotto24 shares for shares in ZEAL. The offer consideration will reflect the ratio of the volume-weighted average share prices of both Lotto24 and ZEAL over the past three months before announcement of the transaction. Subject to the final determination of the minimum prices required by law and the final terms set forth in the offer document, ZEAL intends to offer one new ZEAL share as consideration in exchange for each ca. 1.6 tendered shares of Lotto24. Independently of the offer, ZEAL expects to pay an ordinary interim dividend ofEUR 1.00 by year-end 2018.

 

In a clear statement of shareholder support for the deal, ZEAL today entered into irrevocable tender agreements with major shareholders of Lotto24, namely with Günther Group, Working Capital and Jens Schumann. They represent approximately 65% of the shares and voting rights in Lotto24. By entering into the tender agreements, these shareholders have undertaken to tender their shares in Lotto24 into the offer.

 

Jonas Mattsson, Chief Financial Officer of ZEAL“We believe this deal creates significant value for ZEAL and Lotto24 shareholders. The future growth prospects, significant reduction of regulatory risk and the related uncertainties, and EUR 57 million of annual cost synergies make the combined group a highly attractive long-term investment proposition. With our shared history, we are confident of achieving a seamless integration of both companies. Weencourage all holders of Lotto24 and ZEAL shares to follow the major shareholders and take part in the offer.”

 

The offer will be made in accordance with the conditions to be set forth in the offer document, among others a minimum acceptance rate of 50% plus one share of Lotto24. Further details of the offer and its terms, including the acceptance period, will be contained in the offer document. ZEAL expects that the offer document will be published on the website www.zeal-offer.com at the beginning of 2019.

An extraordinary general meeting of ZEAL is expected to be held at the end of December 2018, at which ZEAL will ask its shareholders to approve the offer, including the acquisition of Lotto24 shares from certain members of the Supervisory Board of ZEAL or persons connected with them, and authorise the Executive Board to allot a number of shares as required to fund the offer. As Günther Group has made it a condition to its tender agreement with ZEAL that it will not, as a consequence of the offer, be subject to a legal obligation to make a general offer for the shares in ZEAL which it does not own at that time, ZEAL will furthermore propose a resolution to its shareholders (other than Günther Group and persons acting in concert with Günther Group) to approve the waiver of such obligation granted by the Panel on Takeovers and Mergers. The ZEAL shareholder approvals will be a condition for ZEAL to publish the offer document.

Discussions with the German gambling regulatory body about the future licensing arrangements for the enlarged Group have already been initiated. ZEAL expects to complete the transaction in the first half of 2019.

Source: Latest News at European Gaming Media

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