News
Technology Offered by Gaming Partners International and Progressive Gaming Accelerates the Adoption of RFID by Casinos Worldwide
LAS VEGAS-(Business Wire)-September 4, 2008 - Gaming Partners International Corporation (NASDAQ: GPIC) (“GPIâ€), a leading provider of casino chips and table game equipment worldwide, and Progressive Gaming International Corporation (NASDAQ: PGIC) (“Progressive Gamingâ€), a leading provider of diversified technology and system solutions used in the gaming industry worldwide, announced today that:
- RFID technology is becoming widely accepted by casinos worldwide as 41% ($8.6 million) of the revenue generated by GPI in the first half of 2008 from worldwide chip sales were for chips with embedded RFID, including 40% of the chip sales in the North American market and 48% of the chip sales in Macau. RFID chips accounted for 3.4% of GPI’s sales in 2004; 12.7% in 2005; 35% in 2006; and 26.7% in 2007.
- Progressive Gaming’s exclusively licensed 13.56 MHz PJM (Phase Jitter Modulation) RFID technology is emerging as the worldwide casino standard as it accounted for a large majority of all RFID chips sold in the first half of 2008 by GPI and other chip manufacturers.
Since January 2006 GPI and Progressive Gaming have entered into various RFID technology agreements to leverage their extensive combined Intellectual Property and experience with 13.56 MHz PJM RFID technology to develop and market RFID enabled gaming chips, readers and gaming software solutions. Since that time, GPI’s RFID chips and Progressive Gaming’s systems have been deployed by 25 casinos in 11 jurisdictions across North America, including Foxwoods Resort Casino in Connecticut, as well as at three leading Macau casinos, Wynn Macau, Crown Macau and Galaxy StarWorld Casino.
Bodo Ischebeck, Vice President RFID and Table Management Systems for Progressive Gaming, commented, “The growing pace of adoption of RFID technology is a direct reflection of the variety of quantifiable security, tracking, accounting efficiencies and bonusing applications that 13.56 MHz PJM technology has consistently demonstrated to casino operators. GPI’s high quality RFID gaming chips are an integral component of our Chip Inventory System (CIS) and Table iD® bet recognition technology. With more customers becoming familiar with the tremendous benefits and return on investment of this technology, we have commitments from additional properties for the installation of our RFID automated table game management solutions.â€
Progressive Gaming offers a wide portfolio of system solutions utilizing 13.56 MHz PJM RFID technology, which has broadened the range of RFID based applications thanks to its comprehensive, robust and highly adaptable features and resulting efficiencies. This industry leading technology improves security and the speed and accuracy of table accounting procedures by maintaining an accurate real-time chip inventory throughout the casino.
The 13.56 MHz PJM RFID technology is licensed exclusively by Progressive Gaming through its strategic partnership with Magellan Technology, the providers of the RFID products and the PJM protocol used for item level identification systems that provide reliable high speed processing of items including stacked gaming chips.
Electronic chip floats at each table, capable of identifying up to 1,000 RFID chips per second, increase real time visibility for actual table status and results, while protecting against counterfeiting, theft and misuse of gaming chips. The utilization of RFID technology also enhances the wager monitoring process by automating player tracking, allowing operators to accurately rate players based on actual wagering volumes instead of through time consuming manual estimations. In addition, RFID technology and its related systems allow for linked bonusing opportunities to create progressive jackpots that drive incremental wagering volume and enhance the entertainment value for patrons.
Gerard Charlier, President and CEO of Gaming Partners International, commented, “RFID technology applied to gaming chips has demonstrated very fundamental advantages for operators by allowing for the identification of counterfeited chips by systematic mass authentication instead of single analysis and has reliably automated chip accounting with antennas and electronic reading units positioned at various key areas in the casinos such as the cashier’s desk, vault and tables. As its worldwide gaming industry adoption continues to gain momentum, operators are increasingly realizing that RFID technology simplifies and optimizes operating procedures while delivering an unparalleled gaming experience to casino patrons and providing an attractive return on investment.
“GPI and Progressive Gaming originally developed Low Frequency (125 KHz) RFID technology that effectively proved the advantages of RFID embedded in gaming chips in several large casinos worldwide. Now, the advanced 13.56 MHz PJM RFID technology is increasingly being selected by some of the most prominent casinos in Macau and the United States as it offers outstanding performance for real time chip tracking of thousands of chips in a casino environment. Thanks to the partnership between GPI and Progressive Gaming and our respective experience, we are able to offer our RFID chips and reading units with stand alone computer systems totally compatible with Progressive Gaming’s Chip Inventory System (CIS) and other Cage and Table Management solutions. This allows casinos to adopt the 13.56 MHz PJM RFID technology step by step. We look forward to enhancing the security and efficiencies of additional casinos worldwide with this industry standard management and tracking technology and plan to deliver additional innovations and features as we develop and bring them to market.â€
About Progressive Gaming
Progressive Gaming is a trusted leader of enterprise gaming solutions and supplier of integrated casino and jackpot management systems for the gaming industry worldwide. This technology is widely used to enhance casino operations and drive greater revenues for existing products. Progressive Gaming is unique in the industry in offering casino management and progressive systems in a modular yet integrated solution. Products include multiple forms of regulated wagering solutions in wired, wireless and mobile formats. There are Progressive Gaming products in over 1,000 casinos throughout the world. For further information, visit www.progressivegaming.net.
Forward-Looking Statements: This release contains forward-looking statements, including statements regarding expected installations of Table iD®, estimated market share represented by installations of Table iD® and previous systems installations, expected operating characteristics of Table iD® and anticipated benefits to customers, and anticipated growth in the Table iD® North American installed base. Such statements are subject to certain risks and uncertainties, and actual circumstances, events or results may differ materially from those projected in such forward-looking statements. Factors that could cause or contribute to differences include, but are not limited to, the risk that expected installations of Table iD® may not be completed when expected, or at all, the risk that the estimated global market may be larger than anticipated, the risk that Table iD® may not operate in the manner expected or provide the anticipated benefits to customers, risks related to delays in the approval, introduction, installation and customer acceptance of Table iD® and other products, the risk that Progressive Gaming may not successfully resolve any outstanding legal matters, risks related to the integration of VirtGame's and EndX's technology with Progressive Gaming’s products, the status of rights licensed from content providers, risks related to Progressive Gaming’s ability to enforce and develop its intellectual property rights, including rights licensed from third parties, the risk that patents may exist of which Progressive Gaming is not aware, or that existing patents may provide benefits to third parties beyond those anticipated by Progressive Gaming, Progressive Gaming’s ability to meet its capital requirements, relationships with casino operators, the overall industry environment, customer acceptance of Progressive Gaming’s new products, further approvals of regulatory authorities, adverse court rulings, production and/or quality control problems, the denial, suspension or revocation of privileged operating licenses by governmental authorities, competitive pressures and general economic conditions as well as Progressive Gaming’s debt service obligations and other risks detailed in Progressive Gaming’s filings with the SEC, including the Annual Report on Form 10-K for the year ended December 31, 2007 and periodic reports on Form 10-Q and Form 8-K as well as other subsequent filings with the SEC. These forward-looking statements are based on current information that is likely to change. Progressive Gaming cautions readers not to place undue reliance on any forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and Progressive Gaming does not undertake, and specifically disclaims any obligation, to update or revise any forward-looking statements to reflect new circumstances or anticipated or unanticipated events or circumstances as they occur.
About Gaming Partners International Corporation
GPIC manufactures and supplies (under the brand names of Paulson®, Bourgogne et Grasset and Bud Jones®) casino chips including plaques and jetons and low frequency and high frequency RFID chips, low frequency RFID readers and high frequency PJM RFID readers with stand alone software compatible with PGIC integrated systems, table layouts, playing cards, dice, gaming furniture, roulette wheels, table accessories, and other products that are used with casino table games such as blackjack, poker, baccarat, craps, and roulette. GPIC is headquartered in Las Vegas, NV, with offices in Beaune, France; San Luis Rio Colorado, Mexico; Atlantic City, NJ; and Gulfport, MS. GPIC sells its casino products directly to licensed casinos throughout the world. For additional information about GPIC, visit our web site at http://www.gpigaming.com.
Safe Harbor Statement: This release contains "forward-looking statements" based on current expectations but involving known and unknown risks and uncertainties. GPIC's expectations regarding operating results and operating efficiencies, including the growth of new product markets, may not be met. Factors that could cause actual results to vary materially from these forward-looking statements include: reduction in growth rate of new and existing casinos and markets, particularly in Asia, failure of the industry to accept RFID technology generally, or 125 KHz or 13.56 MHz RFID technology in particular, with respect to gaming chips and readers, failure to realize revenues from our backlog, potential patent infringement issues, statements regarding the demand for gaming chips with high speed RFID readers and tags and activities expected to occur in connection with the GPIC's agreement with Progressive Gaming International Corporation. Such statements are subject to certain risks and uncertainties, and actual circumstances, events or results may differ materially from those projected in such forward-looking statements. Factors that could cause or contribute to differences include, but are not limited to, the risk that the demand for gaming chips with high speed RFID readers and tags may not reach expected levels, timing and volume of customer demand for our casino products, timing of new casino openings and expansions, domestic or international terrorists incidents, and unexpected taxes, charges, costs or difficulties in consolidating the operations of the companies. Additional information concerning factors and risks that could affect these statements are included in GPI's Form 10-Q for the quarter ended June 30, 2008 and Form 10-K for the year ended December 31, 2007.
©2008 Progressive Gaming International Corporation® and Gaming Partners International Corporation. All rights reserved.
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