AGEM releases April index data

However, compared to a year ago, it remains up 22.04 points (+13.8 percent). In April, 13 of the 16 global gaming equipment manufacturers reported a decline in stock price, with nine companies witnessing a decline of more than five percent. Ainsworth Game Technology (AGI) was the only company to report a substantial month-to-month gain in stock price during the month.

The broader stock markets reported mixed results in April 2014. NASDAQ ended the month with a closing value of 4,114.56, which was down 2.0 percent from March 2014. Meanwhile, the S&P 500 and Dow Jones Industrial Average (DJIA) reported modest month-to-month gains during the period. The S&P 500 ended the month at 1,883.95, which represented an increase of 0.6 percent. Meanwhile, the DJIA reported a 0.7 percent increase, rising from 16,457.66 to 16,580.84.

Selected positive contributors to the April 2014 AGEM Index included the following:

-Ainsworth Game Technology (AGI) reported a stock price of AU$4.15 (+14.0 percent) and contributed 1.35 points.

- With a 2.2-percent increase in stock price to $72.73, Crane Co. (CR) contributed 0.69 points.

Selected negative contributors included the following:

-IGT contributed negative 2.41 points, due to its 10.7-percent decline in stock price to $12.55.

- Due to its stock price of €21.14 (-4.1 percent), GTECH S.p.A. (GTK) contributed negative 1.12 points.

-Aristocrat Technologies  reported a stock price of -6.5 percent and contributed negative 1.07 points

Earlier this year, Nevada and Delaware became the first two states to sign an online poker partnership. The Multi- State Internet Gaming Agreement will allow gamblers in Delaware and Nevada to log on to poker sites within their state and compete with each other for the same pot. Currently, the plan is to have revenues distributed to each state based on the number of players participating from that state. In addition, players will follow the laws and regulations of the state in which they are playing.

There is no timeline for when the states will launch interstate online poker sites because providers must work to synchronize their site platforms. However, proponents of the agreement hope that it will help states learn to work together to capitalize on the growing market. It is likely additional states will join once they legalize online gambling within their borders.

Since launching their online poker sites last year, revenues reported by operators in Nevada, Delaware and New Jersey have been somewhat disappointing. Nevada averaged roughly $850,000 per month in online gaming revenue in the past year. Meanwhile, Delaware reported its strongest results in March when it brought in about $206,800 in revenue. New Jersey reported $11.9 million in revenue in March. Analysts are now estimating the state will bring in about $34 million in tax revenue for the fiscal year ending June 30, 2014, as opposed to the $180 million predicted before the sites went live.

Despite generating lower-than-expected revenues, online gaming activity has been reporting significant month-to-month increases. In March, Delaware’s revenue increased 25 percent when compared to February. New Jersey reported a 15.2-percent increase from February to March. In addition, many tourists have been coming to New Jersey in the hopes of playing online.

At least 10 states are currently considering the legalization of Internet gambling within their borders, including California, Colorado, Hawaii, Illinois, Iowa, Louisiana, Massachusetts, Mississippi, New York and Pennsylvania. Assuming these larger states legalize online gaming and join Delaware and Nevada in a multistate poker agreement, it is likely operators will benefit from an increased market reach.

It is somewhat unclear where online gambling is headed in the future. A bill was recently introduced that would restore a ban on the market, including in states where it is already legal. However, these types of proposals do not seem to be gaining much support with opponents arguing legalization should continue to be decided by individual states. Assuming a ban does not move forward, Internet gambling is likely to continue to be a growing market space, providing growth opportunities for gaming equipment manufacturers and technology firms.