In this section we look at two Australian gaming companies and machine manufacturers. Seemingly, Australia is among the best in the world in developing and innovating new technologies, with gaming being a consistently growing market. In a nutshell. Australia is among the best in the world when it comes to poker machines and online gaming. Aristocrat is in another league to Ainsworth and consolidating its dominant position. We prefer ALL over AGI. Company Overview Ainsworth Gaming Tech (AGI) vs Aristocrat Leisure (ALL) are the two giants of the gaming machine world. Both companies have a rich history but Aristocrat is where it all began. Some of you may question the ethics and morals of gaming machine companies and rightly so, but we’ll leave that discussion for another day. AGI and ALL are the two main players in this industry and control not only the local market but are also leading global suppliers to the casino market. It all started with a man named Len Ainsworth. He founded Aristocrat Leisure and produced its first machine in 1953. It listed on the ASX in 1996. His plan was simple; he would manufacture poker machines to make money to fund dentist chairs. Having no idea of what was to come, it didn’t take long before everyone wanted poker machines from his company. Aristocrat was born. ABC News says every year Australians dump $13 billion through the pokies. Len had no idea what poker machines were, let alone what was to come. But after realising its potential, he soon dominated the industry. The rest they say is history. Aristocrat (ALL) – Aristocrat is the older of the two, listed in 1996. It operates, develops, manufactures and distributes gaming content, platforms and systems in Australia, New Zealand, the Americas, Japan and Rest of World. The company now also operates on-line social gaming and real money wager markets. ALL is the life story of Len Ainsworth who built it from the ground up to where it is today. Two years after the company floated, shares soared. It took the spot as the second biggest poker machine company in the world. Len Ainsworth left Aristocrat in 1994, founding Ainsworth Game Technology a year later. Aristocrat games are developed continually with a massive focus on research and development. Some of the latest games for those so inclined include Queen Of The Nile Legends, Panda Paradise Quick Fire, The Red Empress, Electric Boogaloo Quick Fire, Sun King and Superman. ALL has also pushed into the mobile space via Oasis 360 and the acquisition of Product Madness, a leader in the fast-growing online social casino market. ALL recently entered into a binding agreement to acquire 100% of Plarium for US$500 million cash and an-earn out arrangement. Plarium is an Israeli headquartered Free-To-Play (“FTP”) mobile, social, and web-based game developer. The purchase significantly expands Aristocrat’s addressable market into adjacent gaming segments and increases its exposure to the fast growing Digital market. Its half year results were solid. The company posted a 57% rise in NPAT to $249.6m. It was a solid performance driven across the group’s…

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