Mixed Month for Casino Game Makers

Association of Gaming Equipment Manufacturers

October saw mixed fortunes for gaming equipment manufacturers, with an approximate 50/50 split between those gaining and losing share value.

In its latest monthly index from Las Vegas, the Association of Gaming Equipment Manufacturers (AGEM) reports eight of 17 companies whose performance is tracked saw their stock price rise during October.

This leaves nine whose value fell, including five whose shares dropped by 5% or more.

But the downward pressures on prices are largely limited to the US, where work is ongoing to relax the regulations surrounding online poker.

Outside of the US, manufacturers trading on global stock exchanges typically saw more of the sector's above-average gains for the month.

The index as a whole saw its first decline for three months in October, dropping by a modest 0.5% or 0.61 points, to stand at 128.23.

However, this short-term volatility is part of a longer-term period of continued growth, which has taken the index to 3.6% higher than its October 2011 position.

AGEM points out that October was also a period of stock price falls across the board - and not just in the gaming machine industry.

The S&P 500 dropped by 2% to 1,412.16 during October, the Dow Jones Industrial Average lost 2.5%, and the NASDAQ slumped by 4.5% compared with the end of September.

Against this backdrop, the relatively modest losses of gaming equipment manufacturers - many of whom saw positive growth on an individual basis - could be taken as evidence of optimism for the future of the sector.

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