Gaming Partners is looking at opportunities in other marketsbesides Las Vegas, particularly Pennsylvania and Delaware, becauseof prospective expansions of the gaming industry there. "Severaljurisdictions in the US have recently legalized table games," thecompany notes in its filings. "Of particular interest is the stateof Pennsylvania, which has issued licenses for table games whichare expected to begin operations by the third quarter of 2010.Delaware also recently authorized table games for its threelicensees, which are also expected to begin table game operationsstarting in the third quarter of 2010."

Gaming Partners could be considered something of a bellwetherfor the industry and the economy, as it is tied to the fortunes ofthe industry. As it explained in one of its SEC filings, "In theUS, the general slow-down in the economy and in the gaming industryhas negatively impacted our casino customers and therefore oursales." In addition, casinos are working to reduce their costs,including slowing down the typical replacement cycle on productssuch as cards, layouts and dice that Gaming Partners sells. "Inaddition, financial strains on casino owners have reduced thenear-term likelihood of new casino openings, the expansion ofexisting casinos, and large replacement orders, upon which ourcasino chip sales are heavily dependent," Gaming Partnersstates.

On the other hand, the Las Vegas-based company points out thatother local casino markets in the US have not been as adverselyaffected by the economic downturn as in the gaming destinationmarkets of Las Vegas and Atlantic City. Domestically, the companyplans to compete for the table game business of the casinos thatare expected to open in Delaware and Pennsylvania in the secondhalf of the year. Internationally, it expects Asia to be asignificant market again in 2010 and is looking to expand ourmarket share across all product lines in South America in 2010.