AGEM Board of Directors Actions for June 2021
- AGEM President David Lucchese and Executive Director Marcus Prater shared some exciting news with members at the start of the June monthly meeting. Following a tour by both at the Black Fire Innovation Center, which is part of the Harry Reid Research and Technology Park overseen by the University of Nevada, Las Vegas, AGEM is aiming to set up a new worldwide headquarters based in this impressive space later this year. The proposed office will not be completed until October at the earliest, but this new location will provide AGEM with a purpose-built space to welcome the incoming executive director next March, as well as facilities to host in-person monthly board meetings for members. The benefits to this move are numerous, and it will also allow AGEM to be sited among an exciting list of other member companies as well as other notable innovators to the industry.
- It was announced recently that Nevada Gaming Commission member Deborah J. Fuetsch has resigned her post and Governor Steve Sisolak is set to appoint her replacement in the near future. Once this role has been filled, it is worthy to note that the governor will have filled seven of the eight regulator roles during his first term. AGEM has enjoyed a good relationship with the governor and the Gaming Control Board, and looks forward to working with the new commission appointee once the governor has made his selection.
- The last few weeks have seen good news and developments in Mexico. AGEM’s Mexico Committee Chair Carlos Carrión of Aristocrat has arranged a meeting this month with SEGOB Director Alma Itzec De Lira Castillo and other AGEM member companies to discuss three key topics—the proposed new federal law, opposition to the proposed “NOM” that would add a further layer of certification to gaming machines, and proposals for a marketing strategy to promote gaming activity and restart the industry post-pandemic. Signs are very promising in Mexico that these and other changes are moving forward in a more transparent, corrupt-free way, without lawmakers pushing their own agendas.
- AGEM members approved a contribution of $25,000 for funding to the International Problem Gambling Center, which provides evaluation, individual and group counseling services to those who have gambling problems. AGEM partnered with GLI in 2019 for the Lasting Impact Philanthropic Initiative, which pledged $200,000 over two years. Because of the pandemic and its impact on AGEM’s budget, the payment time frame will be extended.
- The first post-pandemic in-person gaming show, the National Indian Gaming Association (NIGA) Tradeshow & Convention, will take place at Caesars Forum in Las Vegas July 19-22. AGEM remains as a Platinum sponsor of this event and will have a small booth at the show.
- Reed Exhibitions and the American Gaming Association announced at the beginning of June that G2E will definitely take place as an in-person event in October in Las Vegas. The decision was taken after feedback from the industry and key stakeholders along with a detailed survey undertaken from April 27 to May 9 when 3,276 respondents provided feedback, with 83 percent of respondents stating they were likely or very likely to attend G2E and researching new products noted as the highest key reason to visit the show. The news was greeted very positively by the industry, which is looking forward to reconnecting with customers and contacts. Reed confirmed that registration will go live in July.
The AGEM Index increased by 121.27 points to 979.7 points in May 2021, a 14.1 percent gain from April 2021. In the last month, nearly all of AGEM Index companies reported increases in stock price, with 12 posting positive contributions and one recording a negative contribution to the index. The AGEM Index has trended positively for seven consecutive months and has reached its highest mark ever recorded. Additionally, the AGEM Index was up 213.5 percent from the March 2020 low point at the outset of the Covid-19 pandemic. The AGEM Index’s May 2021 growth was due in large part to a 10.4 percent increase in the stock price of Aristocrat Leisure Limited (ASX: AL), which rose from $37.17 to $41.05. The stock was responsible for 36.92 points of the AGEM Index’s monthly growth. Another significant index contributor was International Game Technology PLC (NYSE: IGT), which added 34.46 points due to a 40.9 percent stock price growth from $17.22 to $24.26. The major stock indices had mixed performances. The Dow Jones Industrial Average and the S&P 500 grew by 1.9 percent and 0.5 percent, respectively. Meanwhile, the Nasdaq experienced a 1.5 percent decline.