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SECOND QUARTER 2012
Robert Saucier - CEO
Gary Vecchiarelli - CFO
FINANCIAL RESULTS
Q2 2011 vs. Q2 2012
              $1,790           $1,752
$1,800

$1,550

$1,300

$1,050

          $749             $733
 $800
                                                  $632
 $550

 $300

                                         ($147)           ($176) $62
  $50

($200)
          Gross Revenue   Gross Profit      EBITDA       Net Profit/(Loss)
Revenues
$8

                                                         $7.20
$7


$6


$5


$4

                        $3.06             $3.44
                $2.77            $3.69   As of Q2
$3

       $2.07
$2
       2008     2009    2010    2011                2012 (Est.)
Gross Margins
100%

99%

98%
                                               97.4%               97.9%
97%
                                      95.7%
96%

95%
        94.5%
94%

93%
                              92.5%
92%

91%

90%
                2008   2009             2010           2011   Q2 - 2012
EBITDA (Non-GAAP)
$2,500

                                                             $2,000
$2,000


$1,500


                                                   $1,092
$1,000
                                                  As of Q2


 $500

                             ($9)          $101
   $0
           ($388)   ($325)

($500)
           2008      2009    2010   2011                     2012 (Est.)
Net Profit
$250



                                                                             $0
   $0


                                     ($136)                   ($110)

($250)



            ($504)       ($448)                      ($473)
($500)




($750)
            2008      2009        2010        2011                     2012 (Est.)
Performance Metrics
Average Quarterly Revenue
                                            Q2-2011     Q1-2012     Q2-2012
Proprietary Table Games
       Premium Games                             $900      $1,171      $1,087
       Side Bets                                 $214       $365        $407
                                Sub-Total        $318       $509        $534

Enhanced Table Systems
      Bonus Jackpot System                       $686        $651       $755
      Inter-Casino Jackpot System                            $878
      MEGA-Share                                             $280       $344
                                Sub-Total        $686        $695       $728

e-Tables (per Seat)                                        $1,619      $1,698
                                   TOTAL         $338       $531        $567
Performance Metrics
Units In Service
                                            Q1-2011     Q1-2012     Q2-2012
Proprietary Table Games
       Premium Games                              313         514        563
       Side Bets                                1,764       2,388      2,439
                                Sub-Total       2,077       2,902      3,002

Enhanced Table Systems
      Bonus Jackpot System                        123          91         99
      Inter-Casino Jackpot System                               3
      MEGA-Share                                                7          3
                                Sub-Total         123         101        102

e-Tables (Seats)                                               45         55
                                   TOTAL        2,200       3,048      3,159
21+3 Placements (U.S.)
1,250
                                                                                 1,157


                                                                      964
1,000


                              Q2
                              747                          771
 750                    Q1
                        632
                                               571

 500
                                    408

         272      288
 250
         Oct-11                      YE 2012     YE 2013    YE 2014    YE 2015       YE 2016
Quarterly Highlights
        European expansion continues
           • Lucky Ladies generating revenues in Italy, Belgium and Switzerland;
             Trial periods ending soon in France and Austria
           • 400+ tables in Europe
           • Products in 140 out of 141 casinos in the United Kingdom

        Continued product & territory expansion
           • Tables increased to 3,115 at June 30th from 3,012 at March 31st
           • 21+3 approved in PA
           • Lucky Ladies, 21+3 and BJS pending in CO
           • Bonus Craps pending in NJ & WA
           • Developing other products in PTG portfolio
Enhanced Table Systems
Gaming Company Comparison
                           MRQ         Growth               Net Profit   Market    Price /    Price /    Price /
       Company                          Trend      EBITDA    (Loss)       Cap     Revenue*   EBITDA*    Earnings*
                          Revenue


                          $1.8M        139%       $0.63M    $0.62M       $9M        1.2        3.4        N/A
         (GLXZ)



                          $66.1M        10%       $23.7M     $9.7M       $755M      2.9        8.0        19.5
         (SHFL)



                          $1.3M         14%       ($0.2M)   ($0.87M)     $34M       6.5       N/A         N/A
        (DEQ.V)


*Annualized, based on numbers of the most recent quarter
Q&A
Closing Remarks
Robert Saucier, CEO

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Galaxy Gaming (GLXZ) Q2 2012 Investor Presentation

  • 1. SECOND QUARTER 2012 Robert Saucier - CEO Gary Vecchiarelli - CFO
  • 3. Q2 2011 vs. Q2 2012 $1,790 $1,752 $1,800 $1,550 $1,300 $1,050 $749 $733 $800 $632 $550 $300 ($147) ($176) $62 $50 ($200) Gross Revenue Gross Profit EBITDA Net Profit/(Loss)
  • 4. Revenues $8 $7.20 $7 $6 $5 $4 $3.06 $3.44 $2.77 $3.69 As of Q2 $3 $2.07 $2 2008 2009 2010 2011 2012 (Est.)
  • 5. Gross Margins 100% 99% 98% 97.4% 97.9% 97% 95.7% 96% 95% 94.5% 94% 93% 92.5% 92% 91% 90% 2008 2009 2010 2011 Q2 - 2012
  • 6. EBITDA (Non-GAAP) $2,500 $2,000 $2,000 $1,500 $1,092 $1,000 As of Q2 $500 ($9) $101 $0 ($388) ($325) ($500) 2008 2009 2010 2011 2012 (Est.)
  • 7. Net Profit $250 $0 $0 ($136) ($110) ($250) ($504) ($448) ($473) ($500) ($750) 2008 2009 2010 2011 2012 (Est.)
  • 8. Performance Metrics Average Quarterly Revenue Q2-2011 Q1-2012 Q2-2012 Proprietary Table Games Premium Games $900 $1,171 $1,087 Side Bets $214 $365 $407 Sub-Total $318 $509 $534 Enhanced Table Systems Bonus Jackpot System $686 $651 $755 Inter-Casino Jackpot System $878 MEGA-Share $280 $344 Sub-Total $686 $695 $728 e-Tables (per Seat) $1,619 $1,698 TOTAL $338 $531 $567
  • 9. Performance Metrics Units In Service Q1-2011 Q1-2012 Q2-2012 Proprietary Table Games Premium Games 313 514 563 Side Bets 1,764 2,388 2,439 Sub-Total 2,077 2,902 3,002 Enhanced Table Systems Bonus Jackpot System 123 91 99 Inter-Casino Jackpot System 3 MEGA-Share 7 3 Sub-Total 123 101 102 e-Tables (Seats) 45 55 TOTAL 2,200 3,048 3,159
  • 10. 21+3 Placements (U.S.) 1,250 1,157 964 1,000 Q2 747 771 750 Q1 632 571 500 408 272 288 250 Oct-11 YE 2012 YE 2013 YE 2014 YE 2015 YE 2016
  • 11. Quarterly Highlights European expansion continues • Lucky Ladies generating revenues in Italy, Belgium and Switzerland; Trial periods ending soon in France and Austria • 400+ tables in Europe • Products in 140 out of 141 casinos in the United Kingdom Continued product & territory expansion • Tables increased to 3,115 at June 30th from 3,012 at March 31st • 21+3 approved in PA • Lucky Ladies, 21+3 and BJS pending in CO • Bonus Craps pending in NJ & WA • Developing other products in PTG portfolio
  • 13. Gaming Company Comparison MRQ Growth Net Profit Market Price / Price / Price / Company Trend EBITDA (Loss) Cap Revenue* EBITDA* Earnings* Revenue $1.8M 139% $0.63M $0.62M $9M 1.2 3.4 N/A (GLXZ) $66.1M 10% $23.7M $9.7M $755M 2.9 8.0 19.5 (SHFL) $1.3M 14% ($0.2M) ($0.87M) $34M 6.5 N/A N/A (DEQ.V) *Annualized, based on numbers of the most recent quarter
  • 14. Q&A