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GEM Purchases Gaming Trade Shows, Publications

LAS VEGAS, Nevada – Nov. 2, 2000 -- Facing stiff new competition for its largest trade show, GEM Communications announced Wednesday it will buy five trade shows from Las Vegas-based Casino Journal Publishing Group.

Under the letter of intent, GEM will also acquire "Casino Journal" magazine and the "National Gaming Summary" newsletter. The price won't be disclosed until the two sides have signed a definitive agreement.

For GEM, the move was at least partly motivated by the American Gaming Association's decision to launch a gaming industry expo in Las Vegas next October. That conference, the Global Gaming Expo, will be in direct competition with GEM's World Gaming Congress and Expo, currently the gaming industry's top conference.

"There's no doubt (the buyout) will strengthen our position from a marketing standpoint," said Bill Newman, president of New York-based GEM. "From that perspective, (the AGA conference) did play a role."

The Casino Journal buyout gives GEM conferences including the American Gaming Summit, held each January in Las Vegas, the Southern Gaming Summit, the Northern Gaming Summit, and Casino Ops, a June conference co-sponsored by UNLV. In addition to the World Gaming Expo, GEM already operated gaming conferences aimed at the Western and Mid-Atlantic markets.

But another motivation, Newman said, was the chance to acquire Casino Journal magazine, as well as the services of its publishers, brothers Glenn and Adam Fine. While the Fines will remain executives with Casino Journal Publishing Group, they will continue to publish Casino Journal and National Gaming Summary for GEM.

"The Fines bring 16 years of expertise to this arrangement going forward, and that plays a significant role as well," Newman said.

In addition to Casino Journal, Glenn Fine, chairman and chief executive of Casino Journal Publishing Group, said he will be given editorial control of "Casino Executive" and "IGWB," formerly International Gaming and Wagering Business, which are published by GEM. GEM currently owns nine trade publications, including "IGWB" and "Slot Manager."

"There's a lot of changes needed at Casino Executive, perhaps a complete refocusing, since it duplicates Casino Journal," Fine said. "We'll refocus it to give the reader a completely different publication to read, one that's unique.

"GEM agrees (the Casino Journal publications) are successful publications. One of the conditions of the deal was that, unless there was ridiculous (duplication), there would be no change in the staff of Casino Journal."

Meanwhile, Casino Journal's assets will become completely focused in the arena of consumer-oriented gaming magazines. The company will retain four magazines -- "Casino Player," "Strictly Slots," "Poker Digest" and "Atlantic City Insider." Fine will remain chairman and CEO of Casino Journal Publishing Group.

Fine believes the sale will help him reach his biggest goal for Casino Journal Publishing Group -- a Nasdaq listing, something he believes is necessary to allow the company to grow through acquisitions. The company currently doesn't qualify, as its stock trades below $4 per share and its assets are below $4 million. Casino Journal Publishing Group trades over-the-counter.

But Fine said cash from the sale will put the company over the $4 million asset mark -- and believes the sale will help push the company's stock up.

"Our corporate goal has been to expand the company wherever possible," Fine said. "We've expanded the trade side as much as possible, but the consumer side has a tremendous way to go. This will get us one step closer to getting on the Nasdaq, which has kept our price down and kept us from doing acquisitions."

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