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Offering Class II gaming devices can also be used by tribes as a bargaining chip to secure better agreements with the state for Class III gaming revenue sharing. The Class II gaming market includes ~60,000 EGMs . About 10,000 of those AGMs are AGS machines. According to the company, this 17% market share is the second-largest market share in the Class II market. The Class II market is expected to grow ~2% over the next three years. Between the US and Canada, there are ~1,000 casinos with ~980,000 EGMs. This figure includes 135,000 EGMs under route operations , and the 60,000 Class II EGMs. Of the remaining devices, 415,000 are in commercial casinos, and 370,000 are in tribal casinos (Class III devices). This market is also expected to grow ~2% over the next three years. AGS has only 4,000 Class III units, 1,200 of which are video lottery terminals. This is less than 1% of the total number of EGMs.
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