10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)
x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended: June 30, 2012
OR
¨	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from              to             

Commission file number: 0-23588 

GAMING PARTNERS INTERNATIONAL CORPORATION

(Exact name of registrant as specified in its charter)

NEVADA	88-0310433
(State or other jurisdiction	(I.R.S. Employer Identification No.)
of incorporation or organization)
1700 Industrial Road,	89102
Las Vegas, Nevada	(Zip Code)
(Address of principal executive offices)

(702) 384-2425

(Registrant’s telephone number, including area code)

None

(Former name, former address, and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on the Corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the proceeding 12 months (or for such shorter period that registrant was required to submit and post such files).  Yes x  No ¨

Indicate by check mark whether the registrant is a large accelerated filer an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer ¨	Accelerated filer ¨
Non-accelerated filer ¨	Smaller reporting company x
(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨  No x

The number of shares outstanding of each of the registrant’s classes of common stock as of August 1, 2012 was 8,107,304 shares of Common Stock.

GAMING PARTNERS INTERNATIONAL CORPORATION

QUARTERLY REPORT ON FORM 10-Q FOR THE QUARTER ENDED June 30, 2012

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION	1
ITEM 1.  FINANCIAL STATEMENTS	1
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)	1
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)	2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited)	3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (unaudited)	4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)	5
CONDENSED CONSOLIDATED NOTES TO FINANCIAL STATEMENTS (unaudited)	6
ITEM 2.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	13
ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	21
ITEM 4.  CONTROLS AND PROCEDURES	22
PART II. OTHER INFORMATION	23
ITEM 1.  LEGAL PROCEEDINGS	23
ITEM 1A.  RISK FACTORS	23
ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	23
ITEM 3.  DEFAULTS UPON SENIOR SECURITIES	23
ITEM 4.  MINE SAFETY DISCLOSURES	23
ITEM 5.  OTHER INFORMATION	23
ITEM 6.  EXHIBITS	24
SIGNATURES	25

PART I. FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)

(in thousands, except share amounts)

	June 30,			December 31,
	2012			2011
ASSETS
Current Assets:
Cash and cash equivalents	$	12,688		$	9,282
Marketable securities		13,060			14,867
Accounts receivable, net		4,285			5,976
Inventories		7,845			7,749
Prepaid expenses		766			1,015
Deferred income tax asset		617			893
Other current assets		2,321			1,564
Total current assets		41,582			41,346
Property and equipment, net		11,373			11,836
Intangibles, net		592			646
Deferred income tax asset		2,047			1,740
Inventories, non-current		383			160
Other assets, net		255			314
Total assets	$	56,232		$	56,042
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Short-term debt	$	-		$	17
Accounts payable		2,660			2,376
Accrued liabilities		4,020			5,876
Customer deposits and deferred revenue		3,979			4,585
Income taxes payable		369			-
Total current liabilities		11,028			12,854
Long-term debt		-			15
Deferred income tax liability		661			689
Total liabilities		11,689			13,558
Commitments and contingencies - see Note 8
Stockholders' Equity:
Preferred stock, authorized 10,000,000 shares, $.01 par value, none issued or outstanding		-			-
Common stock, authorized 30,000,000 shares, $.01 par value, 8,207,077 and 8,108,304 issued and outstanding, respectively, as of June 30, 2012, and 8,207,077 and 8,187,764 issued and outstanding, respectively, as of December 31, 2011		82			82
Additional paid-in capital		19,493			19,401
Treasury stock, at cost: 98,773 and 19,313 shares		(807	)		(267	)
Retained earnings		25,524			22,442
Accumulated other comprehensive income		251			826
Total stockholders' equity		44,543			42,484
Total liabilities and stockholders' equity	$	56,232		$	56,042

See notes to unaudited condensed consolidated financial statements.

1

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

(in thousands, except per-share amounts)

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2012			2011		2012		2011
Revenues	$	13,030		$	14,791	$	28,455	$	32,612
Cost of revenues		8,291			9,993		18,494		21,485
Gross profit		4,739			4,798		9,961		11,127
Marketing and sales		1,215			1,292		2,623		2,569
General and administrative		1,759			2,401		4,028		4,951
Operating income		1,765			1,105		3,310		3,607
Other income and (expense)		17			121		127		231
Income before income taxes		1,782			1,226		3,437		3,838
Income tax (benefit) / provision		(28	)		318		355		1,201
Net income	$	1,810		$	908	$	3,082	$	2,637
Earnings per share:
Basic	$	0.22		$	0.11	$	0.38	$	0.32
Diluted	$	0.22		$	0.11	$	0.38	$	0.32
Weighted-average shares of common stock outstanding:
Basic		8,122			8,199		8,146		8,199
Diluted		8,134			8,225		8,162		8,223

See notes to unaudited condensed consolidated financial statements.

2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(unaudited)

(in thousands)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2012			2011			2012			2011
Net income	$	1,810		$	908		$	3,082		$	2,637
Other comprehensive income:
Unrealized gain on securities, net of tax		0			7			2			9
Amortization of pension transition asset, net of tax		(3	)		(3	)		(6	)		(6	)
Foreign currency translation adjustment		(1,196	)		277			(571	)		1,308
Other comprehensive (loss) / income, net of tax		(1,199	)		281			(575	)		1,311
Total other comprehensive income	$	611		$	1,189		$	2,507		$	3,948

See notes to unaudited condensed consolidated financial statements.

3

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(unaudited)

(in thousands, except per share amounts) 

													Accumulated
						Additional							Other
	Common Stock					Paid-In		Treasury			Retained		Comprehensive
	Shares			Amount		Capital		Stock			Earnings		Income (Loss)			Total
Balance, January 1, 2011		8,199,016		$	82	$	19,196	$	(196	)	$	20,269	$	1,584		$	40,935
Net income		-			-		-		-			2,637		-			2,637
Unrealized gain on securities, net of tax		-			-		-		-			-		9			9
Stock compensation expense		-			-		102		-			-		-			102
Amortization of pension transition asset,net of tax		-			-		-		-			-		(6	)		(6	)
Foreign currency translation adjustment		-			-		-		-			-		1,308			1,308
Balance, June 30, 2011		8,199,016		$	82	$	19,298	$	(196	)	$	22,906	$	2,895		$	44,985
Balance, January 1, 2012		8,187,764		$	82	$	19,401	$	(267	)	$	22,442	$	826		$	42,484
Net income		-			-		-		-			3,082		-			3,082
Repurchases of common stock		(79,460	)		-		-		(540	)		-		-			(540	)
Unrealized gain on securities, net of tax		-			-		-		-			-		2			2
Stock compensation expense		-			-		92		-			-		-			92
Amortization of pension transition asset, net of tax		-			-		-		-			-		(6	)		(6	)
Foreign currency translation adjustment		-			-		-		-			-		(571	)		(571	)
Balance, June 30, 2012		8,108,304		$	82	$	19,493	$	(807	)	$	25,524	$	251		$	44,543

See notes to unaudited condensed consolidated financial statements.

4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(in thousands)

	Six Months Ended
	June 30,
	2012			2011
Cash Flows from Operating Activities
Net income	$	3,082		$	2,637
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		1,074			1,020
Amortization of intangible assets		54			123
Amortization of bond premium		10			-
Provision for bad debt		(100	)		(17	)
Deferred income taxes		(49	)		3
Stock compensation expense		92			102
Loss (gain) on sale of property and equipment		1			(6	)
(Gain) on sale of marketable securities		(7	)		(13	)
Change in operating assets and liabilities:
Accounts receivable		1,788			1,987
Inventories		(440	)		(1,307	)
Prepaid expenses and other current assets		(540	)		683
Non-current other assets		54			20
Accounts payable		288			(928	)
Customer deposits and deferred revenue		(604	)		415
Accrued liabilities		(403	)		(334	)
Income taxes payable		369			(70	)
Other current liabilities		(1,385	)		-
Net cash provided by operating activities		3,284			4,315
Cash Flows from Investing Activities
Purchases of marketable securities		(10,579	)		(12,681	)
Proceeds from sale of marketable securities		12,014			15,075
Capital expenditures		(742	)		(700	)
Purchase of business assets		-			(718	)
Proceeds from sales of property and equipment		29			27
Net cash provided by investing activities		722			1,003
Cash Flows from Financing Activities
Repayment of debt obligations		(32	)		(7,021	)
Repurchases of common stock		(540	)		-
Net cash (used in) financing activities		(572	)		(7,021	)
Effect of exchange rate changes on cash		(28	)		84
Net increase (decrease) in cash and cash equivalents		3,406			(1,619	)
Cash and cash equivalents, beginning of period		9,282			11,400
Cash and cash equivalents, end of period	$	12,688		$	9,781
Supplemental disclosures of cash flow information
Cash paid for interest	$	1		$	46
Cash paid for income taxes, net of refunds	$	687		$	1,400
Supplemental disclosure of non-cash investing and financing activities
Property and equipment acquired through accounts payable	$	75		$	31

See notes to unaudited condensed consolidated financial statements.

5

CONDENSED CONSOLIDATED NOTES TO FINANCIAL STATEMENTS

(unaudited)

Note 1. Nature of Business and Significant Accounting Policies

Organization and Nature of Business

Gaming Partners International Corporation (GPIC or the Company) has three operating subsidiaries, Gaming Partners International USA, Inc. (GPI USA), Gaming Partners International SAS (GPI SAS), and Gaming Partners International Asia Limited (GPI Asia). In addition, GPI USA owns GPI Mexicana S.A. de C.V. (GPI Mexicana), a manufacturing subsidiary. GPI USA was founded in 1963 as Paul-Son Gaming Supplies, Inc. by Paul S. Endy, Jr., and initially manufactured and sold dice to casinos in Las Vegas. GPI SAS was founded in 1923 as Etablissements Bourgogne et Grasset S.A. by Etienne Bourgogne and Claudius Grasset in Beaune, France to produce and sell counterfeit-resistant chips to casinos in Monaco. GPIC was formed in 2002 through a reverse merger between Paul-Son Gaming Corporation and Bourgogne et Grasset initiated by Francois Carrette, whose firm, Holding Wilson, SA, remains GPIC’s controlling stockholder. The Company has established brand names such as Paulson^®, Bourgogne et Grasset^® (BG^®), and Bud Jones^®. GPIC and each of its subsidiaries are sometimes collectively referred to herein as the “Company,” “us,” “we,” or “our.”

The Company is headquartered in Las Vegas, Nevada and has manufacturing facilities in San Luis Rio Colorado, Mexico and Beaune, France, as well as a warehouse in San Luis, Arizona. GPI USA has sales offices in Las Vegas, Nevada; Atlantic City, New Jersey; and Gulfport, Mississippi, and sells casino products to licensed casinos primarily in the United States and Canada. GPI SAS has a sales office in Beaune, France and sells casino products to licensed casinos in Europe, and Africa. GPI Asia has a sales office in Macau S.A.R., China and sells casino products primarily to licensed casinos in the Asia Pacific region. Most of our products are sold directly to end-users; however, in some regions of the world, we sell through agents.

Our business activities include the manufacture and supply of casino chips, table layouts, radio frequency identification device (RFID) solutions for casino currency, playing cards, gaming furniture, table accessories, and dice, all of which are used in conjunction with casino table games such as blackjack, poker, baccarat, craps, and roulette.

Significant Accounting Policies

Basis of Consolidation and Presentation. The condensed consolidated financial statements include the accounts of GPIC and its wholly-owned subsidiaries GPI SAS, GPI USA, GPI Mexicana, and GPI Asia. All material intercompany balances and transactions have been eliminated in consolidation. The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and do not include all of the information and notes required by generally accepted accounting principles for complete financial statements. These statements should be read in conjunction with our annual audited consolidated financial statements and related notes included in our Form 10-K for the year ended December 31, 2011.

These unaudited condensed consolidated financial statements, in the opinion of management, reflect only normal and recurring adjustments necessary for a fair presentation of results for such periods. The results of operations for an interim period are not necessarily indicative of the results for the full year.

Reclassifications. Certain amounts for the three months ended and six months ended 2011 have been reclassified between cost of revenues and selling, general, and administrative expenses to conform to the 2012 presentation. These reclassifications had no impact on revenues, net income, total assets or total liabilities.

Recently Issued Accounting Standards. Effective January 1, 2012, the Company adopted the Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2011-05, Presentation of Comprehensive Income and ASU No. 2011-12, Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05. These ASUs eliminate the option to present the components of other comprehensive income in the statement of changes in stockholders’ equity. Instead, entities have the option to present the components of net income, the components of other comprehensive income, and total comprehensive income in a single continuous statement or in two separate, but consecutive, statements. The amendments did not change the items reported in other comprehensive income or when an item of other comprehensive income is reclassified to net income. As a result, the adoption of this guidance did not affect our financial position, results of operations, or cash flows. We have presented the components of net income, the components of other comprehensive income, and total comprehensive income in two separate, but consecutive, statements.

6

In May 2011, the FASB issued ASU No. 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRS, to amend fair value measurement to achieve convergence between US GAAP and IFRS. The ASU changes some fair value measurement principles and disclosure requirements, is effective for fiscal quarters and years beginning on or after December 15, 2011, and did not have a material impact on our condensed consolidated financial statements.

Note 2. Acquisition

In April 2011, the Company purchased certain assets of OMC SARL and its subsidiary OMC Industries (OMC), a private French-based manufacturer of high-quality plastic injection molds. The acquisition is part of the Company's overall acquisition strategy to use its cash position to acquire companies, products, or technologies that enable it to diversify and grow its product and service offerings. The Company completed the acquisition of OMC on April 6, 2011 for a total cash consideration of $0.7 million. We did not present pro forma results of operations, actual results of operations from the acquisition date through December 31, 2011, or other similar disclosure, because the acquisition was not material.

Note 3. Cash, Cash Equivalents, and Marketable Securities

The Company holds its cash, cash equivalents, and marketable securities in financial institutions in various countries throughout the world. The following summarizes the geographic location of our holdings (in thousands):

	June 30, 2012						December 31, 2011
	Cash and Cash Equivalents		Marketable Securities		Total		Cash and Cash Equivalents		Marketable Securities		Total
France	$	1,202	$	12,570	$	13,772	$	281	$	13,500	$	13,781
United States		10,555		490		11,045		7,537		1,367		8,904
Macau S.A.R., China		931		-		931		1,464		-		1,464
	$	12,688	$	13,060	$	25,748	$	9,282	$	14,867	$	24,149

Available-for-sale marketable securities consist of investments in securities, such as certificates of deposit offered by French and US banks, bond mutual funds, and term bonds (in thousands):

	June 30, 2012						December 31, 2011
	Cost		Unrealized Gain/(Loss)		Fair Value		Cost		Unrealized Gain/(Loss)			Fair Value
Certificates of deposit	$	10,803	$	-	$	10,803	$	12,537	$	(1	)	$	12,536
Bond mutual funds		2,257		-		2,257		1,942		-			1,942
Term bonds		-		-		-		390		(1	)		389
Total marketable securites	$	13,060	$	-	$	13,060	$	14,869	$	(2	)	$	14,867

We present our marketable securities at their estimated fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company has determined that all of its marketable securities are Level 1 financial instruments, with asset values recorded at quoted prices in active markets for identical assets.

Note 4. Accounts Receivable and Allowance for Doubtful Accounts

At June 30, 2012, we had two customers that individually accounted for 26% and 15% of our accounts receivable balance, respectively. At December 31, 2011, we had one customer that individually accounted for 28% of our accounts receivable balance.

7

The allowance for doubtful accounts consists of the following (in thousands):

	Balance Beginning of Year		Provision			Write-offs, Net of Recoveries			Exchange Rate Effect			Ending Balance
June 30, 2012	$	366	$	(100	)	$	-		$	(1	)	$	265
December 31, 2011	$	208	$	174		$	(9	)	$	(7	)	$	366

Note 5. Inventories

Inventories consist of the following (in thousands):

	June 30, 2012		December 31, 2011
Raw materials	$	4,134	$	3,762
Work in progress		2,133		2,031
Finished goods		1,961		2,116
Total inventories	$	8,228	$	7,909

We classified a portion of our inventories as non-current because we do not expect this portion to be used within one year. The classification of our inventories on our condensed consolidated balance sheets is as follows (in thousands):

	June 30, 2012		December 31, 2011
Current	$	7,845	$	7,749
Non-current		383		160
Total inventories	$	8,228	$	7,909

Note 6. Property and Equipment

Property and equipment consists of the following (in thousands):

	June 30, 2012			December 31, 2011
Land	$	1,765		$	1,773
Buildings and improvements		8,409			8,480
Furniture and equipment		19,435			19,003
Vehicles		427			493
		30,036			29,749
Less accumulated depreciation		(18,663	)		(17,913	)
Property and equipment, net	$	11,373		$	11,836

Depreciation expense for the three months ended June 30, 2012 and 2011 was $538,000 and $537,000, respectively. Depreciation expense for the six months ended June 30, 2012 and 2011 was $1,074,000 and $1,020,000, respectively.

8

Note 7. Intangible Assets

Intangible assets consist of the following (in thousands):

	June 30, 2012							December 31, 2011
	Gross Carrying Amount		Accum Amort			Net Carrying Amount		Gross Carrying Amount		Accum Amort			Net Carrying Amount		Estimated Useful Life (Years)
Patents	$	690	$	(627	)	$	63	$	690	$	(621	)	$	69		13-14
Trademark		620		(167	)		453		620		(143	)		477		12
Licenses		225		(181	)		44		225		(163	)		62		1-3
Other intangibles		63		(31	)		32		65		(27	)		38		5
Total intangible assets	$	1,598	$	(1,006	)	$	592	$	1,600	$	(954	)	$	646

In April 2011, the Company acquired in its OMC acquisition certain intangibles, including a customer list.

Amortization expense for intangible assets for the three months ended June 30, 2012 and 2011 was $27,000 and $52,000, respectively. Amortization expense for intangible assets for the six months ended June 30, 2012 and 2011 was $54,000 and $123,000, respectively.

Note 8. Commitments and Contingencies

Legal Proceedings and Contingencies

Liabilities for material claims against the Company are accrued when a loss is considered probable and can be reasonably estimated. Legal costs associated with claims are expensed as incurred.

On January 18, 2011, a former employee of GPI SAS filed a complaint with the Employment Tribunal of Dijon, France, entitled Christophe Leparoux vs. Gaming Partners International SAS, related to his termination of employment in November 2010. The complaint sought damages for unfair dismissal, legal fees, and back pay. The Court dismissed the complaint on January 23, 2012; however, on February 1, 2012, Mr. Leparoux filed an identical claim before the Employment Tribunal of Dijon. The trial date scheduled for June 25, 2012 was adjourned and the parties subsequently entered into a settlement agreement on June 28, 2012, by which the parties agreed to a full, final and unconditional settlement and waiver of all rights to pursue legal action. The net settlement was significantly lower than plaintiff’s claim of approximately 1.0 million euros (approximately $1.3 million) and we recognized a credit against previously accrued legal expenses at June 30, 2012. The claims will formally be dismissed by the Tribunal of Dijon on or after September 3, 2012.

We are also engaged in disputes and claims in the normal course of business. We believe the ultimate outcome of these proceedings will not have a material adverse impact on our consolidated financial position or results of operations.

Commitments

The Company has exclusive intellectual property license agreements from an unrelated third party which grant the Company the exclusive rights to manufacture and distribute RFID gaming chips, RFID equipment, and software worldwide under patents for a gaming chip tracking system and method that utilizes gaming chips with embedded electronic circuits scanned by antennas in gaming chip placement areas (gaming tables and casino cage) and other RFID-related intellectual property. The duration of these agreements ranges from annual renewal to the life of the patents, the last of which expires in 2015. Cumulative minimum net annual royalty payments are $375,000.

We purchased certain security technology from an unrelated third party for use in our gaming chips under an exclusive contract which requires that we purchase a minimum of $50,000 in product each year through 2016, or $250,000 during the remaining life of the contract.

9

Note 9. Accumulated Other Comprehensive Income

Accumulated other comprehensive income consists of the following (in thousands):

	June 30, 2012		December 31, 2011
Foreign currency translation	$	248	$	819
Unrealized gain / (loss) on securities, net of tax		1		(1	)
Unrecognized pension transition asset, net of tax		2		8
Total accumulated other comprehensive income	$	251	$	826

Note 10. Geographic and Product Line Information

We manufacture and sell casino table game equipment in one operating segment - casino table game equipment products and chip authentication software. Although the Company derives its revenues from a number of different product lines, the Company neither allocates resources based on the operating results from the individual product lines, nor manages each individual product line as a separate business unit.

The following tables present our net sales by geographic area (in thousands):

	Three Months Ended
	June 30,
	2012				2011
Revenues
United States	$	7,112	54.6	%	$	6,070	41.0	%
Asia Pacific (1)		2,951	22.6	%		6,934	46.9	%
Europe (includes Russia)		832	6.4	%		841	5.7	%
Other (2)		2,135	16.4	%		946	6.4	%
Total	$	13,030	100.0	%	$	14,791	100.0	%

(1)	Primarily Macau
(2)	Includes Canada, Australia, and countries in South America and Africa

	Six Months Ended
	June 30,
	2012				2011
Revenues
United States	$	15,102	53.1	%	$	10,905	33.4	%
Asia Pacific (1)		7,968	28.0	%		18,372	56.4	%
Europe (includes Russia)		2,788	9.8	%		1,594	4.9	%
Other (2)		2,597	9.1	%		1,741	5.3	%
Total	$	28,455	100.0	%	$	32,612	100.0	%

(1)	Primarily Macau
(2)	Includes Canada, Australia, and countries in South America and Africa

10

The following tables present our net sales by product line (in thousands):

	Three Months Ended
	June 30,
	2012				2011
Casino chips
American-style casino chips	$	5,807	44.6	%	$	5,169	35.1	%
European-style casino chips		2,125	16.3	%		3,997	27.0	%
Total casino chips		7,932	60.9	%		9,166	62.1	%
Playing cards		1,453	11.2	%		1,262	8.5	%
Table layouts		1,149	8.8	%		1,058	7.2	%
Table accessories and other products		765	5.8	%		720	4.8	%
Gaming furniture		660	5.1	%		579	3.9	%
Dice		540	4.1	%		582	3.9	%
RFID solutions		157	1.2	%		965	6.5	%
Shipping		374	2.9	%		459	3.1	%
Total	$	13,030	100.0	%	$	14,791	100.0	%

	Six Months Ended
	June 30,
	2012				2011
Casino chips
American-style casino chips	$	13,814	48.5	%	$	11,577	35.4	%
European-style casino chips		3,664	12.9	%		10,971	33.6	%
Total casino chips		17,478	61.4	%		22,548	69.0	%
Playing cards		2,778	9.7	%		2,597	8.0	%
Table layouts		2,321	8.2	%		2,041	6.3	%
Table accessories and other products		1,767	6.2	%		1,341	4.1	%
Gaming furniture		1,503	5.3	%		998	3.1	%
Dice		1,136	4.0	%		1,100	3.4	%
RFID solutions		565	2.0	%		1,074	3.3	%
Shipping		907	3.2	%		913	2.8	%
Total	$	28,455	100.0	%	$	32,612	100.0	%

The following table presents our property and equipment by geographic area (in thousands):

	June 30, 2012		December 31, 2011
Property and equipment, net:
France	$	4,930	$	5,229
United States		3,272		3,471
Mexico		3,112		3,066
Macau S.A.R., China		59		70
Total	$	11,373	$	11,836

11

The following table presents our intangible assets by geographic area (in thousands):

	June 30, 2012		December 31, 2011
Intangibles, net:
United States	$	560	$	609
France		32		37
Total	$	592	$	646

Note 11. Stockholders’ Equity

On December 1, 2011, our Board of Directors approved a stock repurchase program which authorized us to repurchase up to five percent (5%), or approximately 410,000 shares, of our outstanding shares of common stock. Repurchases are subject to market conditions, share price, and other factors, as well as periodic review by the Board of Directors. Repurchases have been and will be made in accordance with applicable securities laws in the open market, in privately negotiated transactions, and/or pursuant to Rule 10b5-1 trading plans. The repurchase program does not specify an expiration date, and it may be suspended or discontinued at any time.

During the quarter ended June 30, 2012, we repurchased approximately 32,000 shares of our common stock at a cost of approximately $212,000, or a weighted-average price of $6.55 per share. During the six months ended June 30, 2012, we repurchased approximately 79,000 shares of our common stock at a cost of approximately $540,000, or a weighted-average price of $6.80 per share. As of June 30, 2012, approximately 319,000 shares remained outstanding for repurchase under this program.

Note 12. Earnings per Share (EPS)

Basic EPS is calculated by dividing net income by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the effect of potential common stock, which consists of stock options. Potentially dilutive securities are not taken into account when their effect would be anti-dilutive.

The weighted-average number of common shares outstanding used in the computation of basic and diluted earnings per share is as follows (in thousands):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2012		2011		2012		2011
Weighted-average number of common shares outstanding - basic		8,122		8,199		8,146		8,199
Potential dilution from stock options		12		26		16		24
Weighted-average number of common shares outstanding - diluted		8,134		8,225		8,162		8,223

12

ITEM 2.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

The following discussion is intended to assist in the understanding of our results of operations and our present financial condition. The condensed consolidated financial statements and the accompanying notes contain additional detailed information that should be referred to when reviewing this material. Statements in this discussion may be forward-looking. Such forward-looking statements involve risks and uncertainties that could cause actual results to differ significantly from those expressed. See Item 1A, “Risk Factors,” of the Company’s Form 10-K for the period ended December 31, 2011.

For a company overview and information on our products, as well as general information, see Item 1. “Business,” of the Company’s Form 10-K for the period ended December 31, 2011.

Overview of our Business

We manufacture and supply casino currency under the brand names of Paulson®, Bourgogne et Grasset®, and Bud Jones® (including low- and high-frequency RFID casino chips), RFID solutions for casino currency (consisting of low- and high-frequency RFID chip readers, antennas, chip authentication software, chip inventory software applications and software maintenance services), table layouts, playing cards, dice, gaming furniture, roulette wheels, table accessories, and other products that are used with casino table games such as blackjack, poker, baccarat, craps, and roulette. GPIC is headquartered in Las Vegas, Nevada, with offices in Beaune, France; Macau S.A.R., China; San Luis Rio Colorado, Mexico; Atlantic City, New Jersey; and Gulfport, Mississippi. We sell our products to licensed casinos worldwide. We operate in one segment and have three operating subsidiaries: GPI USA (including maquiladora manufacturing operations in Mexico), GPI SAS, and GPI Asia.  Our subsidiaries have the following distribution and product focus:

· GPI USA sells in the Americas, primarily in the United States and Canada, out of regional offices in the United States. GPI USA sells our full product line, with most of the products manufactured at our facility in Mexico and with the remainder either manufactured in France or purchased from United States vendors. We also warehouse inventory in San Luis, Arizona and at our Las Vegas, Nevada headquarters.

· GPI SAS sells primarily in Europe and Africa out of Beaune, France. GPI SAS predominantly sells casino chips, including both American-style casino chips and European-style casino chips, which are also known as plaques and jetons. Most of the products sold by GPI SAS are manufactured in France, with the remainder manufactured in Mexico.

· GPI Asia sells and distributes chips, plaques, and jetons, as well as RFID solutions for casino currency, out of Macau S.A.R., China, in the Asia Pacific region, with such products being manufactured in our plants in France and Mexico.

Historically, we have experienced significant fluctuations in our quarterly operating results and expect such fluctuations to continue. Our operating results fluctuate due to a number of factors, but primarily reflect the opening of new casinos, the expansion of existing casinos, and large replacement orders for casino chips, our primary product line, which typically represents over 60% of the Company’s revenues. The timing of these events is difficult to forecast and largely beyond our ability to influence, which creates variability in revenues and earnings. While most large projects are pursued years in advance, both large and small sales opportunities arise with little prior notice. An indicator of future sales is found in our backlog, which reflects signed orders that we expect to ship during the remainder of the respective year. Our backlog at June 30, 2012 and June 30, 2011, was as follows (in millions):

	GPI USA		GPI SAS		GPI Asia		Total
June 30, 2012	$	3.6	$	1.4	$	7.5	$	12.5
June 30, 2011	$	5.3	$	8.5	$	0.3	$	14.1

13

Despite the economic downturn in certain markets, the global gaming industry continues to provide gaming suppliers like us with growth opportunities. As the industry's top performing region, Asia Pacific accounts for the most significant product sales opportunities. While we saw a decrease in chip sales in Asia Pacific in the first six months of 2012, compared to the first six months of 2011, we have a backlog of signed replacement and expansion orders and other potential sales, particularly in Asia Pacific, to drive stronger revenue performance in the second half of the year.

Looking beyond Asia Pacific, established gaming regions, like Europe and North America, also possess opportunities for sales as existing casinos pursue rebranding initiatives or expansions, and new markets, like Ohio, commence legalized table gaming operations in 2012.

We will continue to pursue potential strategic acquisitions and partnerships to grow our business. However, no assurance can be given that these efforts will result in completed transactions or that any completed transactions will be successful.

Financial and Operational Highlights

For the second quarter of 2012, our revenues were $13.0 million, a decrease of $1.8 million, or 11.9%, compared to revenues of $14.8 million for the same period of 2011.  For the second quarter of 2012, our net income was $1.8 million, an increase of $0.9 million, or 99.3%, compared to net income of $0.9 million for the same period of 2011.

For the first six months of 2012, our revenues were $28.5 million, a decrease of $4.2 million, or 12.7%, compared to revenues of $32.6 million for the same period of 2011.  For the first six months of 2012, our net income was $3.1 million, an increase of $0.5 million, or 16.9%, compared to net income of $2.6 million for the same period of 2011.

GPI SAS uses the euro as its functional currency. At June 30, 2012 and December 31, 2011, the US dollar to euro exchange rates were $1.2577 and $1.2950, respectively, which represents a 2.9% stronger dollar compared to the euro. The average exchange rates for the six months ended June 30, 2012 and 2011 were $1.2981 and $1.4028, respectively, which represents a 7.5% stronger dollar compared to the euro.

GPI Mexicana uses the US dollar as its functional currency. At June 30, 2012 and December 31, 2011, the Mexican peso to US dollar exchange rates were 13.65 and 13.98, respectively, which represents a 2.3% weaker dollar compared to the peso. The average exchange rates for the six months ended June 30, 2012 and 2011 were 13.27 pesos and 11.91 pesos to the US dollar, respectively, which represents an 11.4% stronger dollar compared to the Mexican peso.

Other Matters

On December 1, 2011, our Board of Directors approved a stock repurchase program which authorizes us to repurchase up to five percent (5%), or approximately 410,000 shares, of our outstanding shares of common stock. For more information regarding this program, see Part II, Item 2 of this Quarterly Report on Form 10-Q and Note 11 contained in the “Condensed Consolidated Notes to Financial Statements” of this Quarterly Report on Form 10-Q.

CRITICAL ACCOUNTING ESTIMATES

Financial statement preparation requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses, and disclosure of contingent assets and liabilities. The accompanying condensed consolidated financial statements are prepared using the same critical accounting estimates discussed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2011.

RESULTS OF OPERATIONS

The following tables summarize selected items from the Company’s condensed consolidated statements of operations (in thousands) and as a percentage of revenues:

14

	Three Months Ended
	June 30,
	2012					2011				Period-to-Period Change
Revenues	$	13,030		100.0	%	$	14,791	100.0	%	$	(1,761	)	(11.9	)%
Cost of revenues (1)		8,291		63.6	%		9,993	67.6	%		(1,702	)	(17.0	)%
Gross profit		4,739		36.4	%		4,798	32.4	%		(59	)	(1.2	)%
Selling, general, and administrative (1)		2,974		22.8	%		3,693	25.0	%		(719	)	(19.5	)%
Operating income		1,765		13.6	%		1,105	7.4	%		660		59.7	%
Other income and (expense)		17		0.1	%		121	0.8	%		(104	)	(86.0	)%
Income before income taxes		1,782		13.7	%		1,226	8.2	%		556		45.4	%
Income tax (benefit) / provision		(28	)	(0.2	)%		318	2.1	%		(346	)	(108.8	)%
Net income	$	1,810		13.9	%	$	908	6.1	%	$	902		99.3	%

⁽¹⁾ Certain amounts for the three months ended June 30, 2011, have been reclassified between cost of revenues and selling, general and administrative expenses to conform to the 2012 presentation. The net amounts reclassified from cost of revenues to selling, general and administrative expenses were $187,000, or 1.3% of revenues, for the three months ended June 30, 2011.

	Six Months Ended
	June 30,
	2012				2011				Period-to-Period Change
Revenues	$	28,455	100.0	%	$	32,612	100.0	%	$	(4,157	)	(12.7	)%
Cost of revenues (1)		18,494	65.0	%		21,485	65.9	%		(2,991	)	(13.9	)%
Gross profit		9,961	35.0	%		11,127	34.1	%		(1,166	)	(10.5	)%
Selling, general, and administrative (1)		6,651	23.4	%		7,520	23.1	%		(869	)	(11.6	)%
Operating income		3,310	11.6	%		3,607	11.0	%		(297	)	(8.2	)%
Other income and (expense)		127	0.4	%		231	0.7	%		(104	)	(45.0	)%
Income before income taxes		3,437	12.0	%		3,838	11.7	%		(401	)	(10.4	)%
Income tax provision		355	1.2	%		1,201	3.7	%		(846	)	(70.4	)%
Net income	$	3,082	10.8	%	$	2,637	8.0	%	$	445		16.9	%

⁽¹⁾ Certain amounts for the six months ended June 30, 2011, have been reclassified between cost of revenues and selling, general and administrative expenses to conform to the 2012 presentation. The net amounts reclassified from cost of revenues to selling, general and administrative expenses were $265,000, or 0.8% of revenues, for the six months ended June 30, 2011.

15

The following tables present certain data by geographic area (in thousands) and as a percentage of revenues:

	Three Months Ended
	June 30,
	2012				2011				Period-to-Period Change
Revenues
United States	$	7,112	54.6	%	$	6,070	41.0	%	$	1,042		17.2	%
Asia Pacific (1)		2,951	22.6	%		6,934	46.9	%		(3,983	)	(57.4	)%
Europe (includes Russia)		832	6.4	%		841	5.7	%		(9	)	(1.1	)%
Other (2)		2,135	16.4	%		946	6.4	%		1,189		125.7	%
Total	$	13,030	100.0	%	$	14,791	100.0	%	$	(1,761	)	(11.9	)%

(1)	Primarily Macau
(2)	Includes Canada, Australia, and countries in South America and Africa

	Six Months Ended
	June 30,
	2012				2011				Period-to-Period Change
Revenues
United States	$	15,102	53.1	%	$	10,905	33.4	%	$	4,197		38.5	%
Asia Pacific (1)		7,968	28.0	%		18,372	56.4	%		(10,404	)	(56.6	)%
Europe (includes Russia)		2,788	9.8	%		1,594	4.9	%		1,194		74.9	%
Other (2)		2,597	9.1	%		1,741	5.3	%		856		49.2	%
Total	$	28,455	100.0	%	$	32,612	100.0	%	$	(4,157	)	(12.7	)%

(1)	Primarily Macau
(2)	Includes Canada, Australia, and countries in South America and Africa

The following tables present the Company’s revenues by product line (in thousands) and as a percentage of revenues:

	Three Months Ended
	June 30,
	2012				2011				Period-to-Period Change
Casino chips
American-style casino chips	$	5,807	44.6	%	$	5,169	35.1	%	$	638		12.3	%
European-style casino chips		2,125	16.3	%		3,997	27.0	%		(1,872	)	(46.8	)%
Total casino chips		7,932	60.9	%		9,166	62.1	%		(1,234	)	(13.5	)%
Playing cards		1,453	11.2	%		1,262	8.5	%		191		15.1	%
Table layouts		1,149	8.8	%		1,058	7.2	%		91		8.6	%
Table accessories and other products		765	5.8	%		720	4.8	%		45		6.3	%
Gaming furniture		660	5.1	%		579	3.9	%		81		14.0	%
Dice		540	4.1	%		582	3.9	%		(42	)	(7.2	)%
RFID solutions		157	1.2	%		965	6.5	%		(808	)	(83.7	)%
Shipping		374	2.9	%		459	3.1	%		(85	)	(18.5	)%
Total	$	13,030	100.0	%	$	14,791	100.0	%	$	(1,761	)	(11.9	)%

16

	Six Months Ended
	June 30,
	2012				2011				Period-to-Period Change
Casino chips
American-style casino chips	$	13,814	48.5	%	$	11,577	35.4	%	$	2,237		19.3	%
European-style casino chips		3,664	12.9	%		10,971	33.6	%		(7,307	)	(66.6	)%
Total casino chips		17,478	61.4	%		22,548	69.0	%		(5,070	)	(22.5	)%
Playing cards		2,778	9.7	%		2,597	8.0	%		181		7.0	%
Table layouts		2,321	8.2	%		2,041	6.3	%		280		13.7	%
Table accessories and other products		1,767	6.2	%		1,341	4.1	%		426		31.8	%
Gaming furniture		1,503	5.3	%		998	3.1	%		505		50.6	%
Dice		1,136	4.0	%		1,100	3.4	%		36		3.3	%
RFID solutions		565	2.0	%		1,074	3.3	%		(509	)	(47.4	)%
Shipping		907	3.2	%		913	2.8	%		(6	)	(0.7	)%
Total	$	28,455	100.0	%	$	32,612	100.0	%	$	(4,157	)	(12.7	)%

Comparison of Operations for the Three Months and Six Months Ended June 30, 2012 and 2011

Revenues. For the three months ended June 30, 2012, revenues were $13.0 million, a decrease of $1.8 million, or 11.9%, compared to revenues of $14.8 million for the same period of 2011. The net decrease in revenues was primarily due to the following:

· a $1.9 million decrease in sales of European-style casino chips for Asia Pacific casinos in the second quarter of 2012, compared to the second quarter of 2011, when the Company had significant sales to the Galaxy ™ and SJM casinos in Macau; and

· a $0.8 million decrease in sales of RFID solutions to casinos in Asia Pacific in the second quarter of 2012, compared to the second quarter of 2011, primarily related to the May 2011 Galaxy Macau opening; offset by

· a $0.6 million increase in sales of American-style chips in the United States in the second quarter of 2012, compared to the second quarter of 2011, primarily driven by sales of Paulson chips to casinos opening in New Jersey and Ohio.

For the six months ended June 30, 2012, revenues were $28.5 million, a decrease of $4.1 million, or 12.7%, compared to revenues of $32.6 million for the same period of 2011. The net decrease in revenues was primarily due to the following:

· a $7.3 million decrease in sales of European-style casino chips for Asia Pacific casinos in the first six months of 2012, compared to the first six months of 2011, when the Company had significant sales to the Galaxy ™ and SJM casinos in Macau; and

· a $0.5 million decrease in sales of RFID solutions to casinos in Asia Pacific in the first six months of 2012, compared to the first six months of 2011, primarily related to the May 2011 Galaxy Macau opening; offset by

· a $2.2 million increase in sales of American-style chips in the United States in the first six months of 2012, compared to the first six months of 2011, primarily driven by sales of Paulson chips to casinos opening in New Jersey, Ohio, and Maine; and

· a $1.4 million increase in sales of furniture, accessories, table layouts, and cards to new and expanding casinos in the United States in the first six months of 2012, compared to the first six months of 2011.

Cost of Revenues. For the three months ended June 30, 2012, cost of revenues was $8.3 million, a decrease of $1.7 million, or 17.0%, compared to cost of revenues of $10.0 million for the same period of 2011. As a percentage of revenues, our cost of revenues decreased to 63.6% in 2012, compared to 67.6% for the same period of 2011.

For the six months ended June 30, 2012, cost of revenues was $18.5 million, a decrease of $3.0 million, or 13.9%, compared to cost of revenues of $21.5 million for the same period of 2011. As a percentage of revenues, our cost of revenues decreased to 65.0% in 2012, compared to 65.9% for the same period of 2011.

17

Gross Profit. For the three months ended June 30, 2012, gross profit was $4.7 million, a decrease of $0.1 million, or 1.2%, compared to gross profit of $4.8 million for the same period of 2011. As a percentage of revenues, our gross profit increased from 32.4% to 36.4%. This gross profit percentage increase was primarily due to a shift in sales mix toward higher-margin Paulson chips to casinos in the United States in the second quarter of 2012. This increase was partially offset by a decrease in sales of European-style casino chips to Asia Pacific casinos in the second quarter of 2012, compared to the same period in 2011, which caused fixed manufacturing costs to be allocated over lower production volumes in these products.

For the six months ended June 30, 2012, gross profit was $10.0 million, a decrease of $1.1 million, or 10.5%, compared to gross profit of $11.1 million for the same period of 2011. As a percentage of revenues, our gross profit increased from 34.1% to 35.0%. This gross profit percentage increase was primarily due to a shift in sales mix toward higher-margin Paulson chips to casinos in the United States in the first six months of 2012. This increase was partially offset by a decrease in sales of European-style casino chips to Asia Pacific casinos in the first six months of 2012, compared to the same period in 2011, which caused fixed manufacturing costs to be allocated over lower production volumes in these products.

Selling, General, and Administrative Expenses. The following tables present the selling, general, and administrative expenses (in thousands) and as a percentage of revenues:

	Three Months Ended
	June 30,
	2012				2011				Period-to-Period Change
Marketing and sales (1)	$	1,215	9.3	%	$	1,292	8.7	%	$	(77	)	(6.0	)%
General and administrative (1)		1,759	13.5	%		2,401	16.3	%		(642	)	(26.7	)%
Total selling, general, and administrative expenses	$	2,974	22.8	%	$	3,693	25.0	%	$	(719	)	(19.5	)%

⁽¹⁾ Certain amounts for the three months ended June 30, 2011, have been reclassified between cost of revenues and selling, general and administrative expenses to conform to the 2012 presentation. The net amounts reclassified from cost of revenues to selling, general and administrative expenses were $187,000, or 1.3% of revenues, for the three months ended June 30, 2011.

For the three months ended June 30, 2012, selling, general, and administrative expenses were $3.0 million, a decrease of $0.7 million, or 19.5%, compared to selling, general, and administrative expenses of $3.7 million during the same period of 2011. Selling, general, and administrative expenses decreased as a percent of revenue to 22.8% in the three months ended June 30, 2012, from 25.0% during the same period of 2011.

Marketing and sales expenses decreased by $0.1 million during the second quarter of 2012, compared to the same period in 2011. This decrease is primarily due to a decrease of $0.1 million in compensation and related costs.

General and administrative expenses decreased by $0.6 million during the second quarter of 2012, compared to the same period in 2011. This is primarily due to a decrease in legal expenses, including both a credit related to the settlement of the employment termination litigation in France and reduced gaming license expenses.

	Six Months Ended
	June 30,
	2012				2011				Period-to-Period Change
Marketing and sales (1)	$	2,623	9.2	%	$	2,569	7.9	%	$	54		2.1	%
General and administrative (1)		4,028	14.2	%		4,951	15.2	%		(923	)	(18.6	)%
Total selling, general, and administrative expenses	$	6,651	23.4	%	$	7,520	23.1	%	$	(869	)	(11.6	)%

⁽¹⁾ Certain amounts for the six months ended June 30, 2011, have been reclassified between cost of revenues and selling, general and administrative expenses to conform to the 2012 presentation. The net amounts reclassified from cost of revenues to selling, general and administrative expenses were $265,000, or 0.8% of revenues, for the six months ended June 30, 2011.

18

For the six months ended June 30, 2012, selling, general, and administrative expenses were $6.7 million, a decrease of $0.8 million, or 11.6%, compared to selling, general, and administrative expenses of $7.5 million during the same period of 2011. Selling, general, and administrative expenses increased as a percent of revenue to 23.4% in the six months ended June 30, 2012, from 23.1% during the same period in 2011.

Marketing and sales expenses increased by $0.1 million during the six months ended June 30, 2012, compared to the same period in 2011. This increase is primarily due to an increase of $0.1 million related to the Company’s expanded global marketing program in 2012.

General and administrative expenses decreased by $0.9 million during the six months ended June 30, 2012, compared to the same period in 2011. This is primarily due to a decrease of $0.8 million in legal expenses, including a credit related to the settlement of the employment termination litigation in France and reduced gaming license expenses.

Other Income and (Expense). The following tables present other income and (expense) items (in thousands) and as a percentage of revenues:

	Three Months Ended
	June 30,
	2012					2011					Period-to-Period Change
Interest income	$	91		0.7	%	$	117		0.8	%	$	(26	)	(22.2	)%
Interest expense		-		0.0	%		(24	)	(0.2	)%		24		-
(Loss) / Gain on foreign currency transactions		(64	)	(0.5	)%		19		0.1	%		(83	)	(436.8	)%
Other (expense) / income, net		(10	)	(0.1	)%		9		0.1	%		(19	)	(211.1	)%
Total other income and (expense)	$	17		0.1	%	$	121		0.8	%	$	(104	)	(86.0	)%

	Six Months Ended
	June 30,
	2012					2011					Period-to-Period Change
Interest income	$	213		0.7	%	$	240		0.8	%	$	(27	)	(11.3	)%
Interest expense		(1	)	0.0	%		(53	)	(0.2	)%		52		-
(Loss) / Gain on foreign currency transactions		(83	)	(0.3	)%		29		0.1	%		(112	)	(386.2	)%
Other (expense) / income, net		(2	)	0.0	%		15		0.0	%		(17	)	(113.3	)%
Total other income and (expense)	$	127		0.4	%	$	231		0.7	%	$	(104	)	(45.0	)%

Income Taxes. Our effective income tax rate for the three and six months ended June 30, 2012 and 2011 was (1.6%) and 10.3%, and 25.9% and 31.3%, respectively. Our effective tax rate for the three and six months ended June 30, 2012 was reduced by the utilization of our foreign tax credit carryforwards, combined with the foreign rate differential on the income from our Macau subsidiary, GPI Asia, and the benefit from a research credit from our French subsidiary, GPI SAS. Without the release of valuation allowance related to our foreign tax credits, our effective income tax rate for the three and six months ended June 30, 2012 would have been approximately 21.6% and 22.3%, respectively. Our effective income tax rate for the three and six months ended June 30, 2011 differed from the statutory rate as a result of the benefit from the research credit from our French subsidiary, GPI SAS.

As of December 31, 2011, we had $3.2 million in available foreign tax credits and a valuation allowance of $3.0 million related to these foreign tax credits due to the on-going uncertainty of future foreign source and US taxable income. These available foreign tax credits of $0.7 million, $1.3 million, and $1.2 million will expire in 2015, 2016, and 2017, respectively. During 2012, we expect to release $0.7 million of the valuation allowance related to foreign tax credits.

The Company accounts for uncertain tax positions in accordance with the applicable accounting guidance. As of June 30, 2012, there has been no material change to the balance of unrecognized tax benefits reported at December 31, 2011.

19

Liquidity and Capital Resources

Sources of Liquidity and Capital Resources. Historically, our primary source of liquidity and capital resources has been cash from operations. Other sources of capital include, but are not limited to, marketable securities and potential bank credit facilities both in the United States and abroad. We believe that the combination of these resources will satisfy our needs for working capital, capital expenditures, purchases of common stock under our stock repurchase program, and litigation, as well as other potential cash requirements, such as any dividends or acquisitions, for our operations for a minimum of the next 12 months.

At June 30, 2012, we had $12.7 million in cash and cash equivalents and $13.1 million in marketable securities, totaling $25.8 million. Of this amount, $13.8 million is held by GPI SAS, $11.1 million is held by GPI USA, and $0.9 million is held by GPI Asia.

Working Capital (See Condensed Consolidated Balance Sheets). The following summarizes our cash and cash equivalents (in thousands), working capital (in thousands), and current ratio:

	June 30,		December 31,
	2012		2011		Period-to-Period Change
Cash and cash equivalents	$	12,688	$	9,282	$	3,406		36.7	%
Marketable securities		13,060		14,867		(1,807	)	(12.2	)%
Working capital		30,554		28,492		2,062		7.2	%
Current ratio		3.8		3.2

At June 30, 2012, working capital totaled $30.6 million, an increase of $2.1 million, or 7.2%, compared to working capital of $28.5 million at December 31, 2011. This increase is due to an increase in current assets of $0.2 million, offset by a decrease in current liabilities of $1.8 million. The increase in current assets was due primarily to an increase is cash and cash equivalents of $3.4 million, offset by a decrease in marketable securities of $1.8 million and a decrease in accounts receivable of $1.7 million. The decrease in current liabilities was due primarily to a decrease in accrued liabilities of $1.9 million.

Cash Flows (See Condensed Consolidated Statements of Cash Flows). The following summarizes our cash flows (in thousands):

	Six Months Ended
	June 30,						Period-to-Period
	2012			2011			Change
Operating activities	$	3,284		$	4,315		$	(1,031	)
Investing activities		722			1,003			(281	)
Financing activities		(572	)		(7,021	)		6,449
Effect of exchange rates		(28	)		84			(112	)
Net change	$	3,406		$	(1,619	)	$	5,025

Net cash flows provided by operating activities was $3.3 million during the six months ended June 30, 2012, a decrease of $1.0 million, compared to net cash flows provided of $4.3 million during the same period in 2011. For the six months ended June 30, 2012, $4.2 million of cash was provided by net income-related activities; $0.9 million was provided by an increase in operating assets (excluding cash); and $1.7 million was used by a decrease in current liabilities. For the six months ended June 30, 2011, $3.8 million of cash was provided by net income-related activities; $1.4 million was provided by an increase in operating assets (excluding cash); and $0.9 million was used by a decrease in current liabilities.

Net cash flows provided by investing activities was $0.7 million during the six months ended June 30, 2012, a decrease of $0.3 million, compared to net cash flows provided by investing activities of $1.0 million during the same period in 2011. This reduction in cash flows provided by investing activities is primarily due to a decrease in net sales of marketable securities of $1.0 million in 2012 during the six months ended June 30, 2012, compared to the same period in 2011, offset by the $0.7 million acquisition of assets from OMC in April 2011.

20

Net cash flows used in financing activities was $0.6 million during the six months ended June 30, 2012, a change of $6.5 million, compared to net cash flows used in financing activities of $7.0 million during the same period in 2011. This reduction in cash flows used in financing activities was primarily due to the repurchase of common stock of $0.5 million during the six months ended June 30, 2012, compared to the repayment of debt obligations for $7.0 million during the same period in 2011.

Debt. In December 2010, GPI SAS borrowed 5.0 million euros (approximately $6.7 million in December 2010) from a French bank at a variable interest rate based on the Euro Interbank Offered Rate plus 0.5% per annum and secured by 3.75 million euros (approximately $4.9 million in December 2010) in GPI SAS certificates of deposit. This loan was paid in full in June 2011.

Capital Expenditures. We plan to purchase approximately $0.2 million in property, plant, and equipment during the remainder of 2012.

Cash Dividend. Our Board of Directors has no current plans to pay a regular dividend on our common stock, but will continuously evaluate the merit of paying a dividend. We paid a $1.5 million dividend, or $0.1825 per share, in December 2011.

Backlog. At June 30, 2012, our backlog of signed orders for 2012 was $12.5 million, consisting of $1.4 million for GPI SAS, $3.6 million for GPI USA, and $7.5 million for GPI Asia. At June 30, 2011, our backlog of signed orders was $14.1 million, consisting of $8.5 million for GPI SAS, $5.3 million for GPI USA, and $0.3 million for GPI Asia.

Contractual Obligations and Commercial Commitments

There were no material changes in the contractual obligations and commercial commitments during the three months ended June 30, 2012.

Forward-Looking Information Statements and Risk Factors

Throughout this Form 10-Q, we make some forward-looking statements which do not relate to historical or current facts, but are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to analyses and other information based on forecasts of future results and estimates of amounts not yet determinable that, while considered reasonable by us, are inherently subject to significant business, economic, and competitive risks and uncertainties, many of which are beyond our control and are subject to change. The statements also relate to our future prospects and anticipated performance, development, and business strategies such as statements relating to anticipated future sales or the timing thereof, potential acquisitions, the long-term growth and prospects of our business or any jurisdiction, the duration or effects of unfavorable economic conditions which may reduce our product sales, and the long-term potential of the RFID gaming chips market and the ability of the Company to capitalize on any such growth opportunities. These statements are identified by their use of terms and phrases such as anticipate, believe, could, would, estimate, expect, intend, may, plan, predict, project, pursue, will, continue, feel, or the negative or other variations thereof, and other similar terms and phrases, including references to assumptions.

Although we believe that the expectations reflected in any of our forward-looking statements are reasonable, actual results could differ materially from those expressed or implied. Our future financial condition and results of operations, as well as any forward-looking statements, are subject to change and to inherent known and unknown risks and uncertainties such as those identified in Part I-Item 1A, “Risk Factors,” of the Company’s Form 10-K for the period ended December 31, 2011. We do not intend, and undertake no obligation, to update our forward-looking statements to reflect future events or circumstances.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not required for a smaller reporting company.

21

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

The Company’s management, including the Chief Executive Officer and Chief Financial Officer, has conducted an evaluation of the effectiveness of the Company’s disclosure controls and procedures pursuant to Exchange Act Rules 13a-15(e) and 15d-15(e) as of June 30, 2012. Based upon this evaluation, the Company’s Chief Executive Officer and the Chief Financial Officer have concluded that, as of June 30, 2012, the end of the period covered by this Form 10-Q, the Company’s disclosure controls and procedures were effective at a reasonable assurance level.

Changes in Internal Control over Financial Reporting

Management has determined that there was no change in our internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) during the quarter ended June 30, 2012, that materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

22

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

For a description of our legal proceedings, see Note 8 contained in the “Condensed Consolidated Notes to Financial Statements” of this Quarterly Report on Form 10-Q, which is incorporated by reference in response to this item.

ITEM 1A. RISK FACTORS

None.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The following is a summary of common shares repurchased by us by month during the second quarter of 2012 under our stock repurchase program:

Period	Total Number of Shares Purchased		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1)		Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs(1)
April 1 to 30		13,600	$	6.47		13,600		338,010
May 1 to 31		11,911	$	6.70		11,911		326,099
June 1 to 30		6,860	$	6.47		6,860		319,239
Total		32,371	$	6.55		32,371

⁽¹⁾ On December 1, 2011, our Board of Directors approved a stock repurchase program which authorizes us to repurchase up to five percent (5%), or approximately 410,000 shares, of our outstanding shares of common stock. Repurchases are subject to market conditions, share price, and other factors, as well as periodic review by the Board of Directors. Repurchases have been and will be made in accordance with applicable securities laws in the open market, in privately negotiated transactions, and/or pursuant to Rule 10b5-1 trading plans. The repurchase program does not specify an expiration date and it may be suspended or discontinued at any time. The shares repurchased during the quarter ended June 30, 2012, were not the result of an accelerated share repurchase agreement and did not result in any derivative transactions.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

None.

23

ITEM 6. EXHIBITS

31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Chief Financial and Principal Accounting Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.0	Certification pursuant to section 906 of the Sarbanes-Oxley Act of 2002.
101.INS**	XBRL Instance
101.SCH**	XBRL Taxonomy Extension Schema
101.CAL**	XBRL Taxonomy Extension Calculation
101.DEF**	XBRL Taxonomy Extension Definition
101.LAB**	XBRL Taxonomy Extension Labels
101.PRE**	XBRL Taxonomy Extension Presentation

**XBRL information furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is otherwise not subject to liability under these sections.

24

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	GAMING PARTNERS INTERNATIONAL CORPORATION
Date: August 9, 2012	By:	/s/ Gregory S. Gronau
		Gregory S. Gronau
		President and Chief Executive Officer
Date: August 9, 2012	By:	/s/ Gerald W. Koslow
		Gerald W. Koslow
		Chief Financial Officer

25

EX-31.1

EXHIBIT 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

Section 302 Certification

I, Gregory S. Gronau, certify that:

1.           I have reviewed this report on Form 10-Q of Gaming Partners International Corporation;

2.           Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.           Based on my knowledge, the financial statements and other financial information included in this report fairly present, in all material respects, the financial condition, results of operations, and cash flows of the registrant as of, and for, the periods presented in this report;

4.           The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)           Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)           Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)           Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)           Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.           The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)           All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial data information; and

b)           Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 9, 2012	By:	/s/ Gregory S. Gronau
		Gregory S. Gronau President and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL AND ACCOUNTING OFFICER

Section 302 Certification

I, Gerald W. Koslow, certify that:

1.           I have reviewed this report on Form 10-Q of Gaming Partners International Corporation;

2.           Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.           Based on my knowledge, the financial statements and other financial information included in this report fairly present, in all material respects, the financial condition, results of operations, and cash flows of the registrant as of, and for, the periods presented in this report;

4.           The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)           Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)           Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)           Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)           Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.           The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)           All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial data information; and

b)           Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 9, 2012	By:	/s/ Gerald W. Koslow
		Gerald W. Koslow  Chief Financial Officer

EX-32.0

Exhibit 32.0

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Gaming Partners International Corporation (the Company), for the quarter ended June 30, 2012, as filed with the Securities and Exchange Commission (SEC) on the date hereof (the Report), Gregory S. Gronau, as Chief Executive Officer, and Gerald W. Koslow, as Chief Financial Officer of the Company, each hereby certifies, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to the best of his knowledge:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

	GAMING PARTNERS INTERNATIONAL CORPORATION
Date: August 9, 2012	By:	/s/ Gregory S. Gronau
		Gregory S. Gronau
		President and Chief Executive Officer
Date: August 9, 2012	By:	/s/ Gerald W. Koslow
		Gerald W. Koslow
		Chief Financial Officer

This certification is being furnished to the SEC as an exhibit to the Report pursuant to § 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of § 18 of the Securities Exchange Act of 1934, as amended.

A signed copy of this written statement required by Section 906 has been provided by the Company and will be retained by the Company and furnished to the SEC or its staff upon request.

XML

Intangible Assets (Details Textual) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Amortization of intangible assets	$ 27	$ 52	$ 54	$ 123

XML

Stockholders' Equity (Details Textual) (USD $)	3 Months Ended	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2012	Dec. 01, 2011
Stock Repurchase Program, Number of Shares Authorized to be Repurchased (in shares)			410,000
Stock Repurchase Program Number of Shares Authorized to be Repurchased, Percentage			5.00%
Stock Repurchased During Period, Shares	32,000	79,000
Stock Repurchased During Period, Value	$ 212,000	$ 540,000
Stock Repurchased Program Weightage Average Price (in dollars per share)	$ 6.55	$ 6.80
Stock Repurchased Program, Shares Outstanding	319,000	319,000

XML

Accounts Receivable and Allowance for Doubtful Accounts (Details Textual)	Dec. 31, 2011	Jun. 30, 2012 Customer One [Member]	Jun. 30, 2012 Customer Two [Member]
Entity Wide Receivable Major Customer Percentage	28.00%	26.00%	15.00%

XML

Intangible Assets (Table)

6 Months Ended

Jun. 30, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Finite-Lived Intangible Assets [Table Text Block]

Intangible assets consist of the following (in thousands):

	June 30, 2012							December 31, 2011
	Gross Carrying Amount		Accum Amort			Net Carrying Amount		Gross Carrying Amount		Accum Amort			Net Carrying Amount		Estimated Useful Life (Years)
Patents	$	690	$	(627	)	$	63	$	690	$	(621	)	$	69		13-14
Trademark		620		(167	)		453		620		(143	)		477		12
Licenses		225		(181	)		44		225		(163	)		62		1-3
Other intangibles		63		(31	)		32		65		(27	)		38		5
Total intangible assets	$	1,598	$	(1,006	)	$	592	$	1,600	$	(954	)	$	646

XML

Geographic and Product Line Information (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended				6 Months Ended
	Jun. 30, 2012		Jun. 30, 2011		Jun. 30, 2012		Jun. 30, 2011
Revenue, Net [Abstract]
Total Revenues	$ 13,030		$ 14,791		$ 28,455		$ 32,612
Revenue Percentage	100.00%		100.00%		100.00%		100.00%
United States [Member]
Revenue, Net [Abstract]
Total Revenues	7,112		6,070		15,102		10,905
Revenue Percentage	54.60%		41.00%		53.10%		33.40%
Asia Pacific [Member]
Revenue, Net [Abstract]
Total Revenues	2,951	[1]	6,934	[1]	7,968	[1]	18,372	[1]
Revenue Percentage	22.60%	[1]	46.90%	[1]	28.00%	[1]	56.40%	[1]
Europe (Includes Russia) [Member]
Revenue, Net [Abstract]
Total Revenues	832		841		2,788		1,594
Revenue Percentage	6.40%		5.70%		9.80%		4.90%
Other [Member]
Revenue, Net [Abstract]
Total Revenues	$ 2,135	[2]	$ 946	[2]	$ 2,597	[2]	$ 1,741	[2]
Revenue Percentage	16.40%	[2]	6.40%	[2]	9.10%	[2]	5.30%	[2]

[1] Primarily Macau

[2] Includes Canada, Australia, and countries in South America and Africa

XML

Property and Equipment (Details Textual) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Depreciation	$ 538	$ 537	$ 1,074	$ 1,020

XML

Earnings per Share (EPS) (Details) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Weighted-average number of common shares outstanding - basic (in shares)	8,122	8,199	8,146	8,199
Potential dilution from stock options (in shares)	12	26	16	24
Weighted-average number of common shares outstanding - diluted (in shares)	8,134	8,225	8,162	8,223

XML

Acquisition

6 Months Ended

Jun. 30, 2012

Business Combinations [Abstract]

Business Acquisition, Integration, Restructuring and Other Related Costs [Text Block]

Note 2. Acquisition

In April 2011, the Company purchased certain assets of OMC SARL and its subsidiary OMC Industries (OMC), a private French-based manufacturer of high-quality plastic injection molds. The acquisition is part of the Company's overall acquisition strategy to use its cash position to acquire companies, products, or technologies that enable it to diversify and grow its product and service offerings. The Company completed the acquisition of OMC on April 6, 2011 for a total cash consideration of $0.7 million. We did not present pro forma results of operations, actual results of operations from the acquisition date through December 31, 2011, or other similar disclosure, because the acquisition was not material.

XML

Geographic and Product Line Information (Details 1) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Revenues	$ 13,030	$ 14,791	$ 28,455	$ 32,612
Percentage of Sales Revenue, Goods, Net	100.00%	100.00%	100.00%	100.00%
American Style Casino Chips [Member]
Revenues	5,807	5,169	13,814	11,577
Percentage of Sales Revenue, Goods, Net	44.60%	35.10%	48.50%	35.40%
European Style Casino Chips [Member]
Revenues	2,125	3,997	3,664	10,971
Percentage of Sales Revenue, Goods, Net	16.30%	27.00%	12.90%	33.60%
Total Casino Chips [Member]
Revenues	7,932	9,166	17,478	22,548
Percentage of Sales Revenue, Goods, Net	60.90%	62.10%	61.40%	69.00%
Playing Cards [Member]
Revenues	1,453	1,262	2,778	2,597
Percentage of Sales Revenue, Goods, Net	11.20%	8.50%	9.70%	8.00%
Table Layouts [Member]
Revenues	1,149	1,058	2,321	2,041
Percentage of Sales Revenue, Goods, Net	8.80%	7.20%	8.20%	6.30%
Table Accessories and Other Products [Member]
Revenues	765	720	1,767	1,341
Percentage of Sales Revenue, Goods, Net	5.80%	4.80%	6.20%	4.10%
Gaming Furniture [Member]
Revenues	660	579	1,503	998
Percentage of Sales Revenue, Goods, Net	5.10%	3.90%	5.30%	3.10%
Dice [Member]
Revenues	540	582	1,136	1,100
Percentage of Sales Revenue, Goods, Net	4.10%	3.90%	4.00%	3.40%
Rfid Solutions [Member]
Revenues	157	965	565	1,074
Percentage of Sales Revenue, Goods, Net	1.20%	6.50%	2.00%	3.30%
Shipping [Member]
Revenues	$ 374	$ 459	$ 907	$ 913
Percentage of Sales Revenue, Goods, Net	2.90%	3.10%	3.20%	2.80%

XML

Acquisition (Details Textual) (USD $) In Millions, unless otherwise specified	Apr. 06, 2011
Business Acquisition, Cost of Acquired Entity, Cash Paid	$ 0.7

XML

Earnings per Share (EPS) (Table)

6 Months Ended

Jun. 30, 2012

Earnings Per Share [Abstract]

Schedule of Weighted Average Number of Shares [Table Text Block]

The weighted-average number of common shares outstanding used in the computation of basic and diluted earnings per share is as follows (in thousands):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2012		2011		2012		2011
Weighted-average number of common shares outstanding - basic		8,122		8,199		8,146		8,199
Potential dilution from stock options		12		26		16		24
Weighted-average number of common shares outstanding - diluted		8,134		8,225		8,162		8,223

XML

Geographic and Product Line Information (Details 2) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Property and equipment, net	$ 11,373	$ 11,836
France [Member]
Property and equipment, net	4,930	5,229
United States [Member]
Property and equipment, net	3,272	3,471
Mexico [Member]
Property and equipment, net	3,112	3,066
Macau S R China [Member]
Property and equipment, net	$ 59	$ 70

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Cash, Cash Equivalents, and Marketable Securities (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011	Jun. 30, 2011	Dec. 31, 2010
Cash and cash equivalents	$ 12,688	$ 9,282	$ 9,781	$ 11,400
Marketable securities	13,060	14,867
Total	25,748	24,149
France [Member]
Cash and cash equivalents	1,202	281
Marketable securities	12,570	13,500
Total	13,772	13,781
United States [Member]
Cash and cash equivalents	10,555	7,537
Marketable securities	490	1,367
Total	11,045	8,904
Macau S R China [Member]
Cash and cash equivalents	931	1,464
Marketable securities	0	0
Total	$ 931	$ 1,464

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Cash, Cash Equivalents, and Marketable Securities (Details 1) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Cost	$ 13,060	$ 14,869
Unrealized Gain/(loss)	0	(2)
Fair Value	13,060	14,867
Certificates Of Deposit [Member]
Cost	10,803	12,537
Unrealized Gain/(loss)	0	(1)
Fair Value	10,803	12,536
Bond Mutual Funds [Member]
Cost	2,257	1,942
Unrealized Gain/(loss)	0	0
Fair Value	2,257	1,942
Term Bonds [Member]
Cost	390	0
Unrealized Gain/(loss)	(1)	0
Fair Value	$ 389	$ 0

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Nature of Business and Significant Accounting Policies

6 Months Ended

Jun. 30, 2012

Accounting Policies [Abstract]

Business Description and Accounting Policies [Text Block]

Note 1. Nature of Business and Significant Accounting Policies

Organization and Nature of Business

Gaming Partners International Corporation (GPIC or the Company) has three operating subsidiaries, Gaming Partners International USA, Inc. (GPI USA), Gaming Partners International SAS (GPI SAS), and Gaming Partners International Asia Limited (GPI Asia). In addition, GPI USA owns GPI Mexicana S.A. de C.V. (GPI Mexicana), a manufacturing subsidiary. GPI USA was founded in 1963 as Paul-Son Gaming Supplies, Inc. by Paul S. Endy, Jr., and initially manufactured and sold dice to casinos in Las Vegas. GPI SAS was founded in 1923 as Etablissements Bourgogne et Grasset S.A. by Etienne Bourgogne and Claudius Grasset in Beaune, France to produce and sell counterfeit-resistant chips to casinos in Monaco. GPIC was formed in 2002 through a reverse merger between Paul-Son Gaming Corporation and Bourgogne et Grasset initiated by Francois Carrette, whose firm, Holding Wilson, SA, remains GPIC’s controlling stockholder. The Company has established brand names such as Paulson^®, Bourgogne et Grasset^® (BG^®), and Bud Jones^®. GPIC and each of its subsidiaries are sometimes collectively referred to herein as the “Company,” “us,” “we,” or “our.”

The Company is headquartered in Las Vegas, Nevada and has manufacturing facilities in San Luis Rio Colorado, Mexico and Beaune, France, as well as a warehouse in San Luis, Arizona. GPI USA has sales offices in Las Vegas, Nevada; Atlantic City, New Jersey; and Gulfport, Mississippi, and sells casino products to licensed casinos primarily in the United States and Canada. GPI SAS has a sales office in Beaune, France and sells casino products to licensed casinos in Europe, and Africa. GPI Asia has a sales office in Macau S.A.R., China and sells casino products primarily to licensed casinos in the Asia Pacific region. Most of our products are sold directly to end-users; however, in some regions of the world, we sell through agents.

Our business activities include the manufacture and supply of casino chips, table layouts, radio frequency identification device (RFID) solutions for casino currency, playing cards, gaming furniture, table accessories, and dice, all of which are used in conjunction with casino table games such as blackjack, poker, baccarat, craps, and roulette.

Significant Accounting Policies

Basis of Consolidation and Presentation. The condensed consolidated financial statements include the accounts of GPIC and its wholly-owned subsidiaries GPI SAS, GPI USA, GPI Mexicana, and GPI Asia. All material intercompany balances and transactions have been eliminated in consolidation. The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and do not include all of the information and notes required by generally accepted accounting principles for complete financial statements. These statements should be read in conjunction with our annual audited consolidated financial statements and related notes included in our Form 10-K for the year ended December 31, 2011.

These unaudited condensed consolidated financial statements, in the opinion of management, reflect only normal and recurring adjustments necessary for a fair presentation of results for such periods. The results of operations for an interim period are not necessarily indicative of the results for the full year.

Reclassifications. Certain amounts for the three months ended and six months ended 2011 have been reclassified between cost of revenues and selling, general, and administrative expenses to conform to the 2012 presentation. These reclassifications had no impact on revenues, net income, total assets or total liabilities.

Recently Issued Accounting Standards. Effective January 1, 2012, the Company adopted the Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2011-05, Presentation of Comprehensive Income and ASU No. 2011-12, Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05. These ASUs eliminate the option to present the components of other comprehensive income in the statement of changes in stockholders’ equity. Instead, entities have the option to present the components of net income, the components of other comprehensive income, and total comprehensive income in a single continuous statement or in two separate, but consecutive, statements. The amendments did not change the items reported in other comprehensive income or when an item of other comprehensive income is reclassified to net income. As a result, the adoption of this guidance did not affect our financial position, results of operations, or cash flows. We have presented the components of net income, the components of other comprehensive income, and total comprehensive income in two separate, but consecutive, statements.

                In May 2011, the FASB issued ASU No. 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRS, to amend fair value measurement to achieve convergence between US GAAP and IFRS. The ASU changes some fair value measurement principles and disclosure requirements, is effective for fiscal quarters and years beginning on or after December 15, 2011, and did not have a material impact on our condensed consolidated financial statements.

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Accounts Receivable and Allowance for Doubtful Accounts (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended		12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Allowance for doubtful accounts, balance beginning of year	$ 366	$ 208	$ 208
Allowance for doubtful accounts, provision	(100)	(17)	174
Allowance for doubtful accounts, write-offs, net of recoveries	0		(9)
Allowance for doubtful accounts, exchange rate effect	(1)		(7)
Allowance for doubtful accounts, ending balance	$ 265		$ 366

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Commitments and Contingencies (Details Textual)	6 Months Ended
	Jun. 30, 2012 USD ($)	Jun. 30, 2012 EUR (€)
Loss Contingency, Settlement Agreement, Terms	Mr. Leparoux filed an identical claim before the Employment Tribunal of Dijon. The trial date scheduled for June 25, 2012 was adjourned and the parties subsequently entered into a settlement agreement on June 28, 2012, by which the parties agreed to a full, final and unconditional settlement and waiver of all rights to pursue legal action. The net settlement was significantly lower than plaintiff's claim of approximately 1.0 million euros (approximately $1.3 million) and we recognized a credit against previously accrued legal expenses at June 30, 2012. The claims will formally be dismissed by the Tribunal of Dijon on or after September 3, 2012.	Mr. Leparoux filed an identical claim before the Employment Tribunal of Dijon. The trial date scheduled for June 25, 2012 was adjourned and the parties subsequently entered into a settlement agreement on June 28, 2012, by which the parties agreed to a full, final and unconditional settlement and waiver of all rights to pursue legal action. The net settlement was significantly lower than plaintiff's claim of approximately 1.0 million euros (approximately $1.3 million) and we recognized a credit against previously accrued legal expenses at June 30, 2012. The claims will formally be dismissed by the Tribunal of Dijon on or after September 3, 2012.
Loss Contingency, Damages Paid, Value		€ 1,000,000
Loss Contingency, Damages Awarded, Value		1,300,000
Loss Contingency Date of Dismissal	Jan. 23, 2012	Jan. 23, 2012
Loss Contingency, Lawsuit Filing Date	February 1, 2012,	February 1, 2012,
Royalty Expense	375,000
Long Term Purchase Commitment Installment Amount	50,000
Long-term Purchase Commitment, Amount	$ 250,000

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CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
ASSETS
Cash and cash equivalents	$ 12,688	$ 9,282
Marketable securities	13,060	14,867
Accounts receivable, net	4,285	5,976
Inventories	7,845	7,749
Prepaid expenses	766	1,015
Deferred income tax asset	617	893
Other current assets	2,321	1,564
Total current assets	41,582	41,346
Property and equipment, net	11,373	11,836
Intangibles, net	592	646
Deferred income tax asset	2,047	1,740
Inventories, non-current	383	160
Other assets, net	255	314
Total assets	56,232	56,042
LIABILITIES AND STOCKHOLDERS' EQUITY
Short-term debt	0	17
Accounts payable	2,660	2,376
Accrued liabilities	4,020	5,876
Customer deposits and deferred revenue	3,979	4,585
Income taxes payable	369	0
Total current liabilities	11,028	12,854
Long-term debt	0	15
Deferred income tax liability	661	689
Total liabilities	11,689	13,558
Commitments and contingencies - see Note 8
Stockholders' Equity:
Preferred stock, authorized 10,000,000 shares, $.01 par value, none issued or outstanding	0	0
Common stock, authorized 30,000,000 shares, $.01 par value, 8,207,077 and 8,108,304 issued and outstanding, respectively, as of June 30, 2012, and 8,207,077 and 8,187,764 issued and outstanding, respectively, as of December 31, 2011	82	82
Additional paid-in capital	19,493	19,401
Treasury stock, at cost: 98,773 and 19,313 shares	(807)	(267)
Retained earnings	25,524	22,442
Accumulated other comprehensive income	251	826
Total stockholders' equity	44,543	42,484
Total liabilities and stockholders' equity	$ 56,232	$ 56,042

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Geographic and Product Line Information (Details 3) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Intangibles, net	$ 592	$ 646
United States [Member]
Intangibles, net	560	609
France [Member]
Intangibles, net	$ 32	$ 37

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CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) In Thousands, except Share data	Common Stock [Member]	Additional Paid-In Capital [Member]	Treasury Stock [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Total
Balance, January 1, 2012 at Dec. 31, 2010	$ 82	$ 19,196	$ (196)	$ 20,269	$ 1,584	$ 40,935
Balance (in shares) at Dec. 31, 2010	8,199,016					8,199,016
Net income	0	0	0	2,637	0	2,637
Unrealized gain on securities, net of tax	0	0	0	0	9	9
Stock compensation expense	0	102	0	0	0	102
Amortization of pension transition asset, net of tax	0	0	0	0	(6)	(6)
Foreign currency translation adjustment	0	0	0	0	1,308	1,308
Balance, June 30, 2012 at Jun. 30, 2011	82	19,298	(196)	22,906	2,895	44,985
Balance (in shares) at Jun. 30, 2011	8,199,016
Balance, January 1, 2012 at Dec. 31, 2011	82	19,401	(267)	22,442	826	42,484
Balance (in shares) at Dec. 31, 2011	8,187,764					8,187,764
Net income	0	0	0	3,082	0	3,082
Repurchases of common stock	0	0	(540)	0	0	(540)
Repurchases of common stock (in shares)	(79,460)
Unrealized gain on securities, net of tax	0	0	0	0	2	2
Stock compensation expense	0	92	0	0	0	92
Amortization of pension transition asset, net of tax	0	0	0	0	(6)	(6)
Foreign currency translation adjustment	0	0	0	0	(571)	(571)
Balance, June 30, 2012 at Jun. 30, 2012	$ 82	$ 19,493	$ (807)	$ 25,524	$ 251	$ 44,543
Balance (in shares) at Jun. 30, 2012	8,108,304					8,108,304

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Inventories (Details 1) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Current	$ 7,845	$ 7,749
Non-current	383	160
Total inventories	$ 8,228	$ 7,909

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Accounts Receivable and Allowance for Doubtful Accounts (Table)

6 Months Ended

Jun. 30, 2012

Valuation and Qualifying Accounts [Abstract]

Schedule of Allowance for Doubtful Accounts Receivable Roll Forward [Table Text Block]

The allowance for doubtful accounts consists of the following (in thousands):

	Balance Beginning of Year		Provision			Write-offs, Net of Recoveries			Exchange Rate Effect			Ending Balance
June 30, 2012	$	366	$	(100	)	$	-		$	(1	)	$	265
December 31, 2011	$	208	$	174		$	(9	)	$	(7	)	$	366

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Property and Equipment (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Land	$ 1,765	$ 1,773
Buildings and improvements	8,409	8,480
Furniture and equipment	19,435	19,003
Vehicles	427	493
Property, Plant and Equipment, Gross	30,036	29,749
Less accumulated depreciation	(18,663)	(17,913)
Property and equipment, net	$ 11,373	$ 11,836

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Property and Equipment (Table)

6 Months Ended

Jun. 30, 2012

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment [Table Text Block]

Property and equipment consists of the following (in thousands):

	June 30, 2012			December 31, 2011
Land	$	1,765		$	1,773
Buildings and improvements		8,409			8,480
Furniture and equipment		19,435			19,003
Vehicles		427			493
		30,036			29,749
Less accumulated depreciation		(18,663	)		(17,913	)
Property and equipment, net	$	11,373		$	11,836

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Cash Flows from Operating Activities
Net income	$ 3,082	$ 2,637
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	1,074	1,020
Amortization of intangible assets	54	123
Amortization of bond premium	10	0
Provision for bad debt	(100)	(17)
Deferred income taxes	(49)	3
Stock compensation expense	92	102
Loss (gain) on sale of property and equipment	1	(6)
(Gain) on sale of marketable securities	(7)	(13)
Change in operating assets and liabilities:
Accounts receivable	1,788	1,987
Inventories	(440)	(1,307)
Prepaid expenses and other current assets	(540)	683
Non-current other assets	54	20
Accounts payable	288	(928)
Customer deposits and deferred revenue	(604)	415
Accrued liabilities	(403)	(334)
Income taxes payable	369	(70)
Other current liabilities	(1,385)	0
Net cash provided by operating activities	3,284	4,315
Cash Flows from Investing Activities
Purchases of marketable securities	(10,579)	(12,681)
Proceeds from sale of marketable securities	12,014	15,075
Capital expenditures	(742)	(700)
Purchase of business assets	0	(718)
Proceeds from sales of property and equipment	29	27
Net cash provided by investing activities	722	1,003
Cash Flows from Financing Activities
Repayment of debt obligations	(32)	(7,021)
Repurchases of common stock	(540)	0
Net cash (used in) financing activities	(572)	(7,021)
Effect of exchange rate changes on cash	(28)	84
Net increase (decrease) in cash and cash equivalents	3,406	(1,619)
Cash and cash equivalents, beginning of period	9,282	11,400
Cash and cash equivalents, end of period	12,688	9,781
Supplemental disclosures of cash flow information
Cash paid for interest	1	46
Cash paid for income taxes, net of refunds	687	1,400
Supplemental disclosure of non-cash investing and financing activities
Property and equipment acquired through accounts payable	$ 75	$ 31

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CONDENSED CONSOLIDATED BALANCE SHEETS [Parenthetical] (USD $)	Jun. 30, 2012	Dec. 31, 2011
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	30,000,000	30,000,000
Common stock, shares issued	8,207,077	8,207,077
Common stock, shares outstanding	8,108,304	8,187,764
Treasury stock, shares	98,773	19,313

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Geographic and Product Line Information

6 Months Ended

Jun. 30, 2012

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Note 10. Geographic and Product Line Information

We manufacture and sell casino table game equipment in one operating segment - casino table game equipment products and chip authentication software. Although the Company derives its revenues from a number of different product lines, the Company neither allocates resources based on the operating results from the individual product lines, nor manages each individual product line as a separate business unit.

The following tables present our net sales by geographic area (in thousands):

	Three Months Ended
	June 30,
	2012				2011
Revenues
United States	$	7,112	54.6	%	$	6,070	41.0	%
Asia Pacific (1)		2,951	22.6	%		6,934	46.9	%
Europe (includes Russia)		832	6.4	%		841	5.7	%
Other (2)		2,135	16.4	%		946	6.4	%
Total	$	13,030	100.0	%	$	14,791	100.0	%

(1)	Primarily Macau
(2)	Includes Canada, Australia, and countries in South America and Africa

	Six Months Ended
	June 30,
	2012				2011
Revenues
United States	$	15,102	53.1	%	$	10,905	33.4	%
Asia Pacific (1)		7,968	28.0	%		18,372	56.4	%
Europe (includes Russia)		2,788	9.8	%		1,594	4.9	%
Other (2)		2,597	9.1	%		1,741	5.3	%
Total	$	28,455	100.0	%	$	32,612	100.0	%

(1)	Primarily Macau
(2)	Includes Canada, Australia, and countries in South America and Africa

The following tables present our net sales by product line (in thousands):

	Three Months Ended
	June 30,
	2012				2011
Casino chips
American-style casino chips	$	5,807	44.6	%	$	5,169	35.1	%
European-style casino chips		2,125	16.3	%		3,997	27.0	%
Total casino chips		7,932	60.9	%		9,166	62.1	%
Playing cards		1,453	11.2	%		1,262	8.5	%
Table layouts		1,149	8.8	%		1,058	7.2	%
Table accessories and other products		765	5.8	%		720	4.8	%
Gaming furniture		660	5.1	%		579	3.9	%
Dice		540	4.1	%		582	3.9	%
RFID solutions		157	1.2	%		965	6.5	%
Shipping		374	2.9	%		459	3.1	%
Total	$	13,030	100.0	%	$	14,791	100.0	%

	Six Months Ended
	June 30,
	2012				2011
Casino chips
American-style casino chips	$	13,814	48.5	%	$	11,577	35.4	%
European-style casino chips		3,664	12.9	%		10,971	33.6	%
Total casino chips		17,478	61.4	%		22,548	69.0	%
Playing cards		2,778	9.7	%		2,597	8.0	%
Table layouts		2,321	8.2	%		2,041	6.3	%
Table accessories and other products		1,767	6.2	%		1,341	4.1	%
Gaming furniture		1,503	5.3	%		998	3.1	%
Dice		1,136	4.0	%		1,100	3.4	%
RFID solutions		565	2.0	%		1,074	3.3	%
Shipping		907	3.2	%		913	2.8	%
Total	$	28,455	100.0	%	$	32,612	100.0	%

The following table presents our property and equipment by geographic area (in thousands):

	June 30, 2012		December 31, 2011
Property and equipment, net:
France	$	4,930	$	5,229
United States		3,272		3,471
Mexico		3,112		3,066
Macau S.A.R., China		59		70
Total	$	11,373	$	11,836

The following table presents our intangible assets by geographic area (in thousands):

	June 30, 2012		December 31, 2011
Intangibles, net:
United States	$	560	$	609
France		32		37
Total	$	592	$	646

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DOCUMENT AND ENTITY INFORMATION	6 Months Ended
	Jun. 30, 2012	Aug. 01, 2012
Entity Registrant Name	Gaming Partners International CORP
Entity Central Index Key	0000918580
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	gpic
Entity Common Stock, Shares Outstanding		8,107,304
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2012
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2012

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Stockholders' Equity

6 Months Ended

Jun. 30, 2012

Stockholders' Equity Note [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

Note 11. Stockholders’ Equity

On December 1, 2011, our Board of Directors approved a stock repurchase program which authorized us to repurchase up to five percent (5%), or approximately 410,000 shares, of our outstanding shares of common stock. Repurchases are subject to market conditions, share price, and other factors, as well as periodic review by the Board of Directors. Repurchases have been and will be made in accordance with applicable securities laws in the open market, in privately negotiated transactions, and/or pursuant to Rule 10b5-1 trading plans. The repurchase program does not specify an expiration date, and it may be suspended or discontinued at any time.

During the quarter ended June 30, 2012, we repurchased approximately 32,000 shares of our common stock at a cost of approximately $212,000, or a weighted-average price of $6.55 per share. During the six months ended June 30, 2012, we repurchased approximately 79,000 shares of our common stock at a cost of approximately $540,000, or a weighted-average price of $6.80 per share. As of June 30, 2012, approximately 319,000 shares remained outstanding for repurchase under this program.

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Revenues	$ 13,030	$ 14,791	$ 28,455	$ 32,612
Cost of revenues	8,291	9,993	18,494	21,485
Gross profit	4,739	4,798	9,961	11,127
Marketing and sales	1,215	1,292	2,623	2,569
General and administrative	1,759	2,401	4,028	4,951
Operating income	1,765	1,105	3,310	3,607
Other income and (expense)	17	121	127	231
Income before income taxes	1,782	1,226	3,437	3,838
Income tax (benefit) / provision	(28)	318	355	1,201
Net income	$ 1,810	$ 908	$ 3,082	$ 2,637
Earnings per share:
Basic (in dollars per share)	$ 0.22	$ 0.11	$ 0.38	$ 0.32
Diluted (in dollars per share)	$ 0.22	$ 0.11	$ 0.38	$ 0.32
Weighted-average shares of common stock outstanding:
Basic (in shares)	8,122	8,199	8,146	8,199
Diluted (in shares)	8,134	8,225	8,162	8,223

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Inventories

6 Months Ended

Jun. 30, 2012

Inventory Disclosure [Abstract]

Inventory Disclosure [Text Block]

Note 5. Inventories

Inventories consist of the following (in thousands):

	June 30, 2012		December 31, 2011
Raw materials	$	4,134	$	3,762
Work in progress		2,133		2,031
Finished goods		1,961		2,116
Total inventories	$	8,228	$	7,909

We classified a portion of our inventories as non-current because we do not expect this portion to be used within one year. The classification of our inventories on our condensed consolidated balance sheets is as follows (in thousands):

	June 30, 2012		December 31, 2011
Current	$	7,845	$	7,749
Non-current		383		160
Total inventories	$	8,228	$	7,909

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Accounts Receivable and Allowance for Doubtful Accounts

6 Months Ended

Jun. 30, 2012

Valuation and Qualifying Accounts [Abstract]

Schedule of Valuation and Qualifying Accounts Disclosure [Text Block]

Note 4. Accounts Receivable and Allowance for Doubtful Accounts

At June 30, 2012, we had two customers that individually accounted for 26% and 15% of our accounts receivable balance, respectively. At December 31, 2011, we had one customer that individually accounted for 28% of our accounts receivable balance.

The allowance for doubtful accounts consists of the following (in thousands):

	Balance Beginning of Year		Provision			Write-offs, Net of Recoveries			Exchange Rate Effect			Ending Balance
June 30, 2012	$	366	$	(100	)	$	-		$	(1	)	$	265
December 31, 2011	$	208	$	174		$	(9	)	$	(7	)	$	366

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Inventories (Tables)

6 Months Ended

Jun. 30, 2012

Inventory Disclosure [Abstract]

Schedule of Inventory, Current [Table Text Block]

Inventories consist of the following (in thousands):

	June 30, 2012		December 31, 2011
Raw materials	$	4,134	$	3,762
Work in progress		2,133		2,031
Finished goods		1,961		2,116
Total inventories	$	8,228	$	7,909

Schedule of Inventory, Noncurrent [Table Text Block]

The classification of our inventories on our condensed consolidated balance sheets is as follows (in thousands):

	June 30, 2012		December 31, 2011
Current	$	7,845	$	7,749
Non-current		383		160
Total inventories	$	8,228	$	7,909

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Earnings per Share (EPS)

6 Months Ended

Jun. 30, 2012

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

Note 12. Earnings per Share (EPS)

Basic EPS is calculated by dividing net income by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the effect of potential common stock, which consists of stock options. Potentially dilutive securities are not taken into account when their effect would be anti-dilutive.

The weighted-average number of common shares outstanding used in the computation of basic and diluted earnings per share is as follows (in thousands):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2012		2011		2012		2011
Weighted-average number of common shares outstanding - basic		8,122		8,199		8,146		8,199
Potential dilution from stock options		12		26		16		24
Weighted-average number of common shares outstanding - diluted		8,134		8,225		8,162		8,223

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2012

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

Note 8. Commitments and Contingencies

Legal Proceedings and Contingencies

Liabilities for material claims against the Company are accrued when a loss is considered probable and can be reasonably estimated. Legal costs associated with claims are expensed as incurred.

On January 18, 2011, a former employee of GPI SAS filed a complaint with the Employment Tribunal of Dijon, France, entitled Christophe Leparoux vs. Gaming Partners International SAS, related to his termination of employment in November 2010. The complaint sought damages for unfair dismissal, legal fees, and back pay. The Court dismissed the complaint on January 23, 2012; however, on February 1, 2012, Mr. Leparoux filed an identical claim before the Employment Tribunal of Dijon. The trial date scheduled for June 25, 2012 was adjourned and the parties subsequently entered into a settlement agreement on June 28, 2012, by which the parties agreed to a full, final and unconditional settlement and waiver of all rights to pursue legal action. The net settlement was significantly lower than plaintiff’s claim of approximately 1.0 million euros (approximately $1.3 million) and we recognized a credit against previously accrued legal expenses at June 30, 2012. The claims will formally be dismissed by the Tribunal of Dijon on or after September 3, 2012.

We are also engaged in disputes and claims in the normal course of business. We believe the ultimate outcome of these proceedings will not have a material adverse impact on our consolidated financial position or results of operations.

Commitments

The Company has exclusive intellectual property license agreements from an unrelated third party which grant the Company the exclusive rights to manufacture and distribute RFID gaming chips, RFID equipment, and software worldwide under patents for a gaming chip tracking system and method that utilizes gaming chips with embedded electronic circuits scanned by antennas in gaming chip placement areas (gaming tables and casino cage) and other RFID-related intellectual property. The duration of these agreements ranges from annual renewal to the life of the patents, the last of which expires in 2015. Cumulative minimum net annual royalty payments are $375,000.

We purchased certain security technology from an unrelated third party for use in our gaming chips under an exclusive contract which requires that we purchase a minimum of $50,000 in product each year through 2016, or $250,000 during the remaining life of the contract.

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Property and Equipment

6 Months Ended

Jun. 30, 2012

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

Note 6. Property and Equipment

Property and equipment consists of the following (in thousands):

	June 30, 2012			December 31, 2011
Land	$	1,765		$	1,773
Buildings and improvements		8,409			8,480
Furniture and equipment		19,435			19,003
Vehicles		427			493
		30,036			29,749
Less accumulated depreciation		(18,663	)		(17,913	)
Property and equipment, net	$	11,373		$	11,836

Depreciation expense for the three months ended June 30, 2012 and 2011 was $538,000 and $537,000, respectively. Depreciation expense for the six months ended June 30, 2012 and 2011 was $1,074,000 and $1,020,000, respectively.

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Intangible Assets

6 Months Ended

Jun. 30, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets Disclosure [Text Block]

Note 7. Intangible Assets

Intangible assets consist of the following (in thousands):

	June 30, 2012							December 31, 2011
	Gross Carrying Amount		Accum Amort			Net Carrying Amount		Gross Carrying Amount		Accum Amort			Net Carrying Amount		Estimated Useful Life (Years)
Patents	$	690	$	(627	)	$	63	$	690	$	(621	)	$	69		13-14
Trademark		620		(167	)		453		620		(143	)		477		12
Licenses		225		(181	)		44		225		(163	)		62		1-3
Other intangibles		63		(31	)		32		65		(27	)		38		5
Total intangible assets	$	1,598	$	(1,006	)	$	592	$	1,600	$	(954	)	$	646

In April 2011, the Company acquired in its OMC acquisition certain intangibles, including a customer list.

Amortization expense for intangible assets for the three months ended June 30, 2012 and 2011 was $27,000 and $52,000, respectively. Amortization expense for intangible assets for the six months ended June 30, 2012 and 2011 was $54,000 and $123,000, respectively.

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Accumulated Other Comprehensive Income

6 Months Ended

Jun. 30, 2012

Equity [Abstract]

Comprehensive Income (Loss) Note [Text Block]

Note 9. Accumulated Other Comprehensive Income

Accumulated other comprehensive income consists of the following (in thousands):

	June 30, 2012		December 31, 2011
Foreign currency translation	$	248	$	819
Unrealized gain / (loss) on securities, net of tax		1		(1	)
Unrecognized pension transition asset, net of tax		2		8
Total accumulated other comprehensive income	$	251	$	826

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Inventories (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Raw materials	$ 4,134	$ 3,762
Work in progress	2,133	2,031
Finished goods	1,961	2,116
Total inventories	$ 8,228	$ 7,909

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Cash, Cash Equivalents, and Marketable Securities (Tables)

6 Months Ended

Jun. 30, 2012

Cash and Cash Equivalents [Abstract]

Cash Cash Equivalents and Marketable Securities [Table Text Block]

The following summarizes the geographic location of our holdings (in thousands):

	June 30, 2012						December 31, 2011
	Cash and Cash Equivalents		Marketable Securities		Total		Cash and Cash Equivalents		Marketable Securities		Total
France	$	1,202	$	12,570	$	13,772	$	281	$	13,500	$	13,781
United States		10,555		490		11,045		7,537		1,367		8,904
Macau S.A.R., China		931		-		931		1,464		-		1,464
	$	12,688	$	13,060	$	25,748	$	9,282	$	14,867	$	24,149

Available-for-sale Securities [Table Text Block]

Available-for-sale marketable securities consist of investments in securities, such as certificates of deposit offered by French and US banks, bond mutual funds, and term bonds (in thousands):

	June 30, 2012						December 31, 2011
	Cost		Unrealized Gain/(Loss)		Fair Value		Cost		Unrealized Gain/(Loss)			Fair Value
Certificates of deposit	$	10,803	$	-	$	10,803	$	12,537	$	(1	)	$	12,536
Bond mutual funds		2,257		-		2,257		1,942		-			1,942
Term bonds		-		-		-		390		(1	)		389
Total marketable securites	$	13,060	$	-	$	13,060	$	14,869	$	(2	)	$	14,867

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Accumulated Other Comprehensive Income (Table)

6 Months Ended

Jun. 30, 2012

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

Accumulated other comprehensive income consists of the following (in thousands):

	June 30, 2012		December 31, 2011
Foreign currency translation	$	248	$	819
Unrealized gain / (loss) on securities, net of tax		1		(1	)
Unrecognized pension transition asset, net of tax		2		8
Total accumulated other comprehensive income	$	251	$	826

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Accumulated Other Comprehensive Income (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended		12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Foreign currency translation	$ 248		$ 819
Unrealized gain / (loss) on securities, net of tax	0		(2)
Unrecognized pension transition asset, net of tax	(6)	(6)	8
Other comprehensive (loss) / income, net of tax	$ 251	$ 1,311	$ 826

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Net income	$ 1,810	$ 908	$ 3,082	$ 2,637
Other comprehensive income:
Unrealized gain on securities, net of tax	0	7	2	9
Amortization of pension transition asset, net of tax	(3)	(3)	(6)	(6)
Foreign currency translation adjustment	(1,196)	277	(571)	1,308
Other Comprehensive Income (Loss), Net of Tax	(1,199)	281	(575)	1,311
Total other comprehensive income	$ 611	$ 1,189	$ 2,507	$ 3,948

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Cash, Cash Equivalents, and Marketable Securities

6 Months Ended

Jun. 30, 2012

Cash and Cash Equivalents [Abstract]

Cash, Cash Equivalents, and Marketable Securities [Text Block]

Note 3. Cash, Cash Equivalents, and Marketable Securities

The Company holds its cash, cash equivalents, and marketable securities in financial institutions in various countries throughout the world. The following summarizes the geographic location of our holdings (in thousands):

	June 30, 2012						December 31, 2011
	Cash and Cash Equivalents		Marketable Securities		Total		Cash and Cash Equivalents		Marketable Securities		Total
France	$	1,202	$	12,570	$	13,772	$	281	$	13,500	$	13,781
United States		10,555		490		11,045		7,537		1,367		8,904
Macau S.A.R., China		931		-		931		1,464		-		1,464
	$	12,688	$	13,060	$	25,748	$	9,282	$	14,867	$	24,149

Available-for-sale marketable securities consist of investments in securities, such as certificates of deposit offered by French and US banks, bond mutual funds, and term bonds (in thousands):

	June 30, 2012						December 31, 2011
	Cost		Unrealized Gain/(Loss)		Fair Value		Cost		Unrealized Gain/(Loss)			Fair Value
Certificates of deposit	$	10,803	$	-	$	10,803	$	12,537	$	(1	)	$	12,536
Bond mutual funds		2,257		-		2,257		1,942		-			1,942
Term bonds		-		-		-		390		(1	)		389
Total marketable securites	$	13,060	$	-	$	13,060	$	14,869	$	(2	)	$	14,867

We present our marketable securities at their estimated fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company has determined that all of its marketable securities are Level 1 financial instruments, with asset values recorded at quoted prices in active markets for identical assets.

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Geographic and Product Line Information (Tables)

6 Months Ended

Jun. 30, 2012

Segment Reporting [Abstract]

Schedule of Revenue from Foreign Countries by Geographic Area [Table Text Block]

The following tables present our net sales by geographic area (in thousands):

	Three Months Ended
	June 30,
	2012				2011
Revenues
United States	$	7,112	54.6	%	$	6,070	41.0	%
Asia Pacific (1)		2,951	22.6	%		6,934	46.9	%
Europe (includes Russia)		832	6.4	%		841	5.7	%
Other (2)		2,135	16.4	%		946	6.4	%
Total	$	13,030	100.0	%	$	14,791	100.0	%

(1)	Primarily Macau
(2)	Includes Canada, Australia, and countries in South America and Africa

	Six Months Ended
	June 30,
	2012				2011
Revenues
United States	$	15,102	53.1	%	$	10,905	33.4	%
Asia Pacific (1)		7,968	28.0	%		18,372	56.4	%
Europe (includes Russia)		2,788	9.8	%		1,594	4.9	%
Other (2)		2,597	9.1	%		1,741	5.3	%
Total	$	28,455	100.0	%	$	32,612	100.0	%

(1)	Primarily Macau
(2)	Includes Canada, Australia, and countries in South America and Africa

Schedule of Product Revenue [Table Text Block]

The following tables present our net sales by product line (in thousands):

	Three Months Ended
	June 30,
	2012				2011
Casino chips
American-style casino chips	$	5,807	44.6	%	$	5,169	35.1	%
European-style casino chips		2,125	16.3	%		3,997	27.0	%
Total casino chips		7,932	60.9	%		9,166	62.1	%
Playing cards		1,453	11.2	%		1,262	8.5	%
Table layouts		1,149	8.8	%		1,058	7.2	%
Table accessories and other products		765	5.8	%		720	4.8	%
Gaming furniture		660	5.1	%		579	3.9	%
Dice		540	4.1	%		582	3.9	%
RFID solutions		157	1.2	%		965	6.5	%
Shipping		374	2.9	%		459	3.1	%
Total	$	13,030	100.0	%	$	14,791	100.0	%

	Six Months Ended
	June 30,
	2012				2011
Casino chips
American-style casino chips	$	13,814	48.5	%	$	11,577	35.4	%
European-style casino chips		3,664	12.9	%		10,971	33.6	%
Total casino chips		17,478	61.4	%		22,548	69.0	%
Playing cards		2,778	9.7	%		2,597	8.0	%
Table layouts		2,321	8.2	%		2,041	6.3	%
Table accessories and other products		1,767	6.2	%		1,341	4.1	%
Gaming furniture		1,503	5.3	%		998	3.1	%
Dice		1,136	4.0	%		1,100	3.4	%
RFID solutions		565	2.0	%		1,074	3.3	%
Shipping		907	3.2	%		913	2.8	%
Total	$	28,455	100.0	%	$	32,612	100.0	%

Schedule of Property Plant and Equipment by Geographic Area [Table Text Block]

The following table presents our property and equipment by geographic area (in thousands):

	June 30, 2012		December 31, 2011
Property and equipment, net:
France	$	4,930	$	5,229
United States		3,272		3,471
Mexico		3,112		3,066
Macau S.A.R., China		59		70
Total	$	11,373	$	11,836

Schedule of Intangible Assets and Goodwill [Table Text Block]

The following table presents our intangible assets by geographic area (in thousands):

	June 30, 2012		December 31, 2011
Intangibles, net:
United States	$	560	$	609
France		32		37
Total	$	592	$	646

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Intangible Assets (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Dec. 31, 2011
Finite-Lived Intangible Assets, Gross	$ 1,598	$ 1,600
Finite-Lived Intangible Assets, Accumulated Amortization	(1,006)	(954)
Finite-Lived Intangible Assets, Net	592	646
Patents [Member]
Finite-Lived Intangible Assets, Gross	690	690
Finite-Lived Intangible Assets, Accumulated Amortization	(627)	(621)
Finite-Lived Intangible Assets, Net	63	69
Trademarks [Member]
Finite-Lived Intangible Assets, Gross	620	620
Finite-Lived Intangible Assets, Accumulated Amortization	(167)	(143)
Finite-Lived Intangible Assets, Net	453	477
Finite-Lived Intangible Asset, Useful Life	12 years
Licensing Agreements [Member]
Finite-Lived Intangible Assets, Gross	225	225
Finite-Lived Intangible Assets, Accumulated Amortization	(181)	(163)
Finite-Lived Intangible Assets, Net	44	62
Other Intangible Assets [Member]
Finite-Lived Intangible Assets, Gross	63	65
Finite-Lived Intangible Assets, Accumulated Amortization	(31)	(27)
Finite-Lived Intangible Assets, Net	$ 32	$ 38
Finite-Lived Intangible Asset, Useful Life	5 years
Minimum [Member] | Patents [Member]
Finite-Lived Intangible Asset, Useful Life	13 years
Minimum [Member] | Licensing Agreements [Member]
Finite-Lived Intangible Asset, Useful Life	1 year
Maximum [Member] | Patents [Member]
Finite-Lived Intangible Asset, Useful Life	14 years
Maximum [Member] | Licensing Agreements [Member]
Finite-Lived Intangible Asset, Useful Life	3 years

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Nature of Business and Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2012

Accounting Policies [Abstract]

Consolidation, Policy [Policy Text Block]

Basis of Consolidation and Presentation. The condensed consolidated financial statements include the accounts of GPIC and its wholly-owned subsidiaries GPI SAS, GPI USA, GPI Mexicana, and GPI Asia. All material intercompany balances and transactions have been eliminated in consolidation. The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and do not include all of the information and notes required by generally accepted accounting principles for complete financial statements. These statements should be read in conjunction with our annual audited consolidated financial statements and related notes included in our Form 10-K for the year ended December 31, 2011.

These unaudited condensed consolidated financial statements, in the opinion of management, reflect only normal and recurring adjustments necessary for a fair presentation of results for such periods. The results of operations for an interim period are not necessarily indicative of the results for the full year.

Reclassification, Policy [Policy Text Block]

Reclassifications. Certain amounts for the three months ended and six months ended 2011 have been reclassified between cost of revenues and selling, general, and administrative expenses to conform to the 2012 presentation. These reclassifications had no impact on revenues, net income, total assets or total liabilities.

New Accounting Pronouncements Policy [Policy Text Block]

Recently Issued Accounting Standards. Effective January 1, 2012, the Company adopted the Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2011-05, Presentation of Comprehensive Income and ASU No. 2011-12, Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05. These ASUs eliminate the option to present the components of other comprehensive income in the statement of changes in stockholders’ equity. Instead, entities have the option to present the components of net income, the components of other comprehensive income, and total comprehensive income in a single continuous statement or in two separate, but consecutive, statements. The amendments did not change the items reported in other comprehensive income or when an item of other comprehensive income is reclassified to net income. As a result, the adoption of this guidance did not affect our financial position, results of operations, or cash flows. We have presented the components of net income, the components of other comprehensive income, and total comprehensive income in two separate, but consecutive, statements.

In May 2011, the FASB issued ASU No. 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRS, to amend fair value measurement to achieve convergence between US GAAP and IFRS. The ASU changes some fair value measurement principles and disclosure requirements, is effective for fiscal quarters and years beginning on or after December 15, 2011, and did not have a material impact on our condensed consolidated financial statements.

.