AGEM releases September 2012 Index

For comparison, the broader stock markets trended in a similar direction, also increasing in September. The Dow Jones Industrial Average (DJIA) reported a closing price of 13,437 at the end of the month. Compared to the prior period, the DJIA reported the greatest increase, rising 2.6 percent. The S&P 500 ended the month at 1,441, up 2.4 percent compared to the 1,407 reported in August 2012. Meanwhile, NASDAQ reported the lowest increase, rising 1.6 percent from 3,067 to 3,116.

Selected positive contributors to the September 2012 AGEM Index included the following:

Lottomatica reported a 3.4-percent increase in stock price to EUR 17.12 and contributed 1.7 points to the index.

Bally Technologies was the second-largest contributor to the overall index with 1.50 points driven by a stock price increase of 11.5 percent, ending the month at us$ 49.39 per share.

Selected negative contributors included the following:

Konami reported a stock price of us$ 22.64, down 1.8 percent and contributed negative 0.38 points to the index.

With a stock price of us$ 2.30, which represents a 3.8-percent decline, Ainsworth Game Technology reported a negative contribution of 0.22 points.

The selection process for casino operators in Massachusetts is moving forward. In November 2011, legislation was signed allowing for the development of three resort casinos and one slots facility located in different regions throughout Massachusetts. The expanded gaming legislation also created a Massachusetts Gaming Commission responsible for overseeing the licensing process.

Five casino operators are currently competing for the single license that will be awarded for a property in western Massachusetts. MGM Resorts International recently announced plans for an us$ 800-million casino in Springfield. The property would be located on a 10-acre site in the south end of downtown Springfield near Interstate-91. In addition to a 250-room hotel, MGM's proposed casino would include an 8,268 sqm casino floor, 6,503 sqm of retail and dining and 3,716 sqm of apartments. The company says development would result in 2,000 construction jobs, thousands of permanent jobs and millions of dollars in tax revenues paid to the city.

Ameristar Casinos also unveiled plans for a resort casino in Springfield located on a 41-acre site purchased by the company for us$ 16 million on Page Boulevard and Interstate-291. The us$ 500-million property would include a 650-room hotel, restaurants, bars, 100 table games and 4,000 slot machines. The company says development would result in 2,000 construction jobs, 2,800 permanent jobs and us$ 20 million in tax revenue.

Penn National Gaming and Hard Rock International are also competing for a casino license in Springfield; although, specific details have not yet been released. Penn National's property would be located in the north end of downtown Springfield. The company is currently finalizing an agreement to purchase The Republican newspaper's Main Street building in addition to eight vacant acres along the Connecticut River.

Mohegan Sun is the final operator currently in the running for the western Massachusetts casino license with plans to build a us$ 600-million property in Palmer.

The city plans to negotiate agreements with potential casino developers by mid-January. If voters approve those agreements in June, they will be sent to the commission for final selection. The commission hopes to have the first casino licensed by February 2014.