AGEM Index Sets Record High, as Gaming Manufacturing Recovery Continues
Gaming manufacturing stockpile prices proceed to surge, as the world emerges from the shallows of the COVID-19 pandemic.
The Association of Gaming Equipment Manufacturers (AGEM) compiles a monthly indicant of 13 major worldwide gaming suppliers. Its June 2021 study places the AGEM Index value at 1,005.20 — the compilation’s all-time highest mark.
At this clip last year, the AGEM Index was at 407.31 points, signification its valuation has surged 147 percent over the past year, or nearly 600 points. June’s 1,005 value was a 2.6 percent premium on May.
In the in conclusion month, septenary of the 13 AGEM Index companies reported increases in stock price. Most of the stocks inwards the AGEM Index recorded triple-digit growing rates o'er the yesteryear year, with Scientific Games Corporation leading the way with a 400.9 percent improvement for its stock toll since June 2020,” a musical note from the index finger explained.
Other notable gaming manufacturing publicly traded companies in the AGEM Index include Aristocrat Leisure, International Gaming Technology (IGT), and Everi Holdings.
Casinos Fare Well
COVID-19 greatly damaged gillyflower prices of various sectors of the US and world-wide gaming industries. Similar to gaming manufacturing, in public traded cassino stocks get made significant gains as the pandemic subsides.
The VanEck Vectors Gaming ETF (exchange traded fund) currently consists of 40 holdings, the majority existence companies primarily occupied inwards operating large-scale casino resorts and sports betting.
The gaming monetary fund has delivered investors who invested inward the investment funds vehicle this time lastly year a great return. On July 7, 2020, the VanEck ETF was trading at $33.65. Today, the monetary fund closed in(p) at $51.87 — a 54 percent year-over-year jump.
Sports betting hulk Flutter Entertainment, parent accompany to FanDuel, FOX Bet, PokerStars, Betfair, and Paddy Power, among others, represents 7.7 percent of the gaming ETF’s network assets. DraftKings is indorsement at 7.05 percent.
The ETF is also intemperately weighted by casino operators invested inward both the US and Macau, including Las Vegas Sands (6.53 percent), and MGM Resorts (5.15 percent).
The gaming fund late strike its own all-time book high up when it closed at $56.10 on Mar 19.
Pent-Up Demand
Gaming executives are optimistic that the retrieval is only if getting started. After a yr of existence told to stick at nursing home and avoid nonessential activities, Americans, many say, are itching for a vacation.
Las Vegas, perhaps the to the highest degree critical market to the AGEM Index and Vectors Gaming ETF, believes the recent curtain raising of the $4.3 one million million Resorts World composite testament only when assist bring back visitors to Southern Nevada. The multibillion-dollar developing is the first unexampled Strip gambling casino inwards to a greater extent than a decade.
A bran-new Las Vegas gap like Resorts World can buoy aim increased visitation,” opined Barry Jonas, managing manager of Truist Securities. “As many customers looking for to visitation the young holding also similar to see multiple properties during their stay.”
“Las Vegas doesn’t operate fountainhead without a crowd, and we’re going to follow completely plunk for to full stadiums, total arenas, full theaters, and all of the entertainment that everybody expects when they come to Las Vegas,” Steve Hill, chair of the Las Vegas Convention and Visitors Authority said recently.