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: March 31, 2014
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 preceding 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 o  No x

The number of shares outstanding of each of the registrant’s classes of common stock as of May 5, 2014 was 7,916,094 shares of Common Stock.

GAMING PARTNERS INTERNATIONAL CORPORATION

QUARTERLY REPORT ON FORM 10-Q FOR THE QUARTER ENDED March 31, 2014

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 LOSS (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	19
ITEM 4.	CONTROLS AND PROCEDURES	19
PART II.	OTHER INFORMATION	20
ITEM 1.	LEGAL PROCEEDINGS	20
ITEM 1A.	RISK FACTORS	20
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	20
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	20
ITEM 4.	MINE SAFETY DISCLOSURES	20
ITEM 5.	OTHER INFORMATION	20
ITEM 6.	EXHIBITS	21
SIGNATURES		22

PART I. FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)

(in thousands, except share amounts)

	March 31,			December 31,
	2014			2013
ASSETS
Current Assets:
Cash and cash equivalents	$	13,813		$	14,492
Marketable securities		5,855			5,724
Accounts receivable, net		5,540			5,905
Inventories		7,406			7,407
Prepaid expenses		828			965
Deferred income tax asset		623			628
Other current assets		4,375			3,054
Total current assets		38,440			38,175
Property and equipment, net		10,478			10,996
Intangibles, net		954			985
Deferred income tax asset		3,216			3,643
Inventories, non-current		175			175
Other assets		1,435			1,475
Total assets	$	54,698		$	55,449
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable	$	2,045		$	2,291
Accrued liabilities		2,899			2,918
Customer deposits and deferred revenue		1,272			646
Income taxes payable		238			251
Total current liabilities		6,454			6,106
Deferred income tax liability		1,870			1,870
Total liabilities Total liabilities		8,324			7,976
Commitments and contingencies - see Note 8
Stockholders' Equity:
Preferred stock, authorized 10,000,000 shares, $.01 par value, none issued and outstanding		-			-
Common stock, authorized 30,000,000 shares, $.01 par value, 8,207,077 and 7,916,094 issued and outstanding, respectively		82			82
Additional paid-in capital		19,823			19,771
Treasury stock at cost: 290,983 shares		(2,262	)		(2,262	)
Retained earnings		27,074			28,205
Accumulated other comprehensive income		1,657			1,677
Total stockholders' equity		46,374			47,473
Total liabilities and stockholders' equity	$	54,698		$	55,449

See notes to unaudited condensed consolidated financial statements.

1

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

(in thousands, except per-share amounts)

	Three Months Ended
	March 31,
	2014			2013
Revenues	$	10,559		$	14,768
Cost of revenues		7,800			10,488
Gross profit		2,759			4,280
Marketing and sales		1,303			1,505
General and administrative		2,068			2,099
Research and development		437			533
Operating (loss) income		(1,049	)		143
Other income and (expense), net		55			79
(Loss) income before income taxes		(994	)		222
Income tax provision (benefit)		137			(311	)
Net (loss) income	$	(1,131	)	$	533
Earnings per share:
Basic	$	(0.14	)	$	0.07
Diluted	$	(0.14	)	$	0.07
Weighted-average shares of common stock outstanding:
Basic		7,916			7,986
Diluted		7,916			8,055

See notes to unaudited condensed consolidated financial statements.

2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(unaudited)

(in thousands)

	Three Months Ended
	March 31,
	2014			2013
Net (loss) income	$	(1,131	)	$	533
Other comprehensive loss:
Foreign currency translation adjustment		(20	)		(659	)
Other comprehensive loss, net of tax		(20	)		(659	)
Total comprehensive loss	$	(1,151	)	$	(126	)

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			Total
Balance, January 1, 2013		8,045,904		$	82	$	19,563	$	(1,250	)	$	27,039		$	1,187		$	46,621
Net income		-			-		-		-			533			-			533
Repurchases of common stock		(93,740	)		-		-		(722	)		-			-			(722	)
Stock compensation expense		-			-		57		-			-			-			57
Foreign currency translation adjustment		-			-		-		-			-			(659	)		(659	)
Balance, March 31, 2013		7,952,164		$	82	$	19,620	$	(1,972	)	$	27,572		$	528		$	45,830
Balance, January 1, 2014		7,916,094		$	82	$	19,771	$	(2,262	)	$	28,205		$	1,677		$	47,473
Net loss		-			-		-		-			(1,131	)		-			(1,131	)
Stock compensation expense		-			-		52		-			-			-			52
Foreign currency translation adjustment		-			-		-		-			-			(20	)		(20	)
Balance, March 31, 2014		7,916,094		$	82	$	19,823	$	(2,262	)	$	27,074		$	1,657		$	46,374

See notes to unaudited condensed consolidated financial statements.

4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(in thousands)

	Three Months Ended
	March 31,
	2014			2013
Cash Flows from Operating Activities
Net (loss) income	$	(1,131	)	$	533
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities:
Depreciation		565			551
Amortization of intangible assets		31			27
Provision for bad debt		38			29
Deferred income taxes		431			(884	)
Stock compensation expense		52			57
(Gain) on sale of marketable securities		(1	)		(5	)
Change in operating assets and liabilities:
Accounts receivable		325			704
Inventories		(5	)		301
Prepaid expenses and other current assets		(186	)		432
Non-current other assets		40			36
Accounts payable		(243	)		(146	)
Customer deposits and deferred revenue		626			(1,510	)
Accrued liabilities		(17	)		(1,141	)
Income taxes payable		(12	)		84
Net cash provided by (used in) operating activities		513			(932	)
Cash Flows from Investing Activities
Purchases of marketable securities		(5,204	)		-
Proceeds from sale of marketable securities		5,068			5,547
Initial deposit on business acquisition		(1,000	)		-
Capital expenditures		(53	)		(708	)
Net cash (used in) provided by investing activities		(1,189	)		4,839
Cash Flows from Financing Activities
Repurchases of common stock		-			(722	)
Net cash used in financing activities		-			(722	)
Effect of exchange rate changes on cash		(3	)		(271	)
Net (decrease) increase in cash and cash equivalents		(679	)		2,914
Cash and cash equivalents, beginning of period		14,492			14,038
Cash and cash equivalents, end of period	$	13,813		$	16,952
Supplemental disclosure of cash flow information:
Cash paid for income taxes, net of refunds	$	11		$	371

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) is headquartered in Las Vegas, Nevada and has three operating subsidiaries: Gaming Partners International USA, Inc. (GPI USA) (including GPI Mexicana, our maquiladora manufacturing operation in Mexico), Gaming Partners International SAS (GPI SAS), and Gaming Partners International Asia Limited (GPI Asia).  Our subsidiaries have the following distribution and product focus:

• GPI USA sells in the United States, Canada, the Caribbean, and Latin America. GPI USA sells our full product line, with most of the products manufactured at our facility in San Luis Rio Colorado, Mexico and 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, and have sales offices in Las Vegas; Atlantic City, New Jersey; and Gulfport, Mississippi.

• GPI SAS sells primarily in Europe and Africa out of its office in Beaune, France. GPI SAS predominantly sells casino currencies, including both American-style, known as chips, and European-style, 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, with an office in Macau S.A.R., China, is the exclusive distributor of GPI USA and GPI SAS products in the Asia-Pacific region. GPI Asia primarily sells casino currency, manufactured in France or in Mexico, as well as radio frequency identification device (RFID) product solutions.

GPIC was formed in 2002 through a combination between Paul-Son Gaming Corporation and Bourgogne et Grasset S.A. initiated by the late Francois Carrette, whose firm, Holding Wilson, S.A., remains GPIC’s controlling stockholder. We have established brand names such as Paulson^®, Bourgogne et Grasset^® (BG^®), Blue Chip (BC^®), and Bud Jones^®. GPIC and each of its subsidiaries are sometimes collectively referred to herein as the “Company,” “us,” “we” or “our.” 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 currencies to casinos in Monaco.

Our business activities include the manufacture and supply of casino currencies, table layouts, playing cards, gaming furniture, table accessories, dice, roulette wheels, and RFID readers and software, all of which are used 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 (US GAAP) 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, 2013.

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.

Recently Issued Accounting Standards. We determined that no recently issued accounting standards apply to our current financials.

6

Note 2. Acquisition

In May 2013, we purchased certain assets of The Blue Chip Company, LLC (Blue Chip), a privately-held manufacturer of compression-molded gaming chips. The acquisition is part of our overall acquisition strategy to use our cash position to acquire companies, products or technologies that enable us to grow and diversify our product offerings. We completed the acquisition of Blue Chip on May 31, 2013 for total consideration of $0.8 million. We did not present pro forma results of operations, actual results of operations from the acquisition date through December 31, 2013, or other disclosure required for business combinations, because the acquisition was not material.

Note 3. Cash, Cash Equivalents, and Marketable Securities

We hold our cash, cash equivalents, and marketable securities in financial institutions in various countries throughout the world. Substantially all accounts have balances in excess of government-insured limits. The following summarizes the geographic location of our holdings (in thousands):

	March 31, 2014						December 31, 2013
	Cash and Cash Equivalents		Marketable Securities		Total		Cash and Cash Equivalents		Marketable Securities		Total
United States	$	10,484	$	-	$	10,484	$	11,052	$	-	$	11,052
France		940		5,855		6,795		344		5,724		6,068
Macau S.A.R., China		2,389		-		2,389		3,096		-		3,096
Total	$	13,813	$	5,855	$	19,668	$	14,492	$	5,724	$	20,216

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

	March 31, 2014						December 31, 2013
	Cost		Unrealized Gain/(Loss)		Fair Value		Cost		Unrealized Gain/(Loss)		Fair Value
Certificates of deposit	$	4,125	$	-	$	4,125	$	4,680	$	-	$	4,680
Bond mutual funds		1,730		-		1,730		1,044		-		1,044
Total marketable securities	$	5,855	$	-	$	5,855	$	5,724	$	-	$	5,724

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. We have determined that all of our marketable securities are Level 1 financial instruments, with asset values recorded at quoted prices in active markets for identical assets.

7

Note 4. Accounts Receivable and Allowance for Doubtful Accounts

At March 31, 2014, three casino customers accounted for 20%, 14% and 14% of our accounts receivable balance, respectively. At December 31, 2013, we had one casino customer that accounted for 10% of our accounts receivable balance.

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

	Balance at Beginning of Year		Provision (Benefit)			Write-offs, Net of Recoveries		Exchange Rate Effect		Balance at End of Period
March 31, 2014	$	114	$	38		$	-	$	-	$	152
December 31, 2013	$	152	$	(39	)	$	-	$	1	$	114

Note 5. Inventories

Inventories consist of the following (in thousands):

	March 31, 2014		December 31, 2013
Raw materials	$	5,200	$	4,957
Work in progress		660		937
Finished goods		1,721		1,688
Total inventories	$	7,581	$	7,582

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):

	March 31, 2014		December 31, 2013
Current	$	7,406	$	7,407
Non-current		175		175
Total inventories	$	7,581	$	7,582

Note 6. Property and Equipment

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

	March 31, 2014			December 31, 2013
Land	$	1,791		$	1,792
Buildings and improvements		8,896			8,897
Equipment and furniture		21,836			21,801
Vehicles		474			475
		32,997			32,965
Less accumulated depreciation		(22,519	)		(21,969	)
Property and equipment, net	$	10,478		$	10,996

Depreciation expense for the three months ended March 31, 2014 and 2013 was $565,000 and $551,000 respectively.

8

Note 7. Intangible Assets

Intangible assets consist of the following (in thousands):

	March 31, 2014							December 31, 2013
	Gross Carrying Amount		Accum. Amort.			Net Carrying Amount		Gross Carrying Amount		Accum. Amort.			Net Carrying Amount		Estimated Useful Life (Years)
Trademarks	$	631	$	(253	)	$	378	$	631	$	(240	)	$	391	10-12
Patents		517		(481	)		36		517		(480	)		37	13-14
Customer list		513		(43	)		470		513		(30	)		483	10
Other intangible assets		103		(33	)		70		103		(29	)		74	5-10
Total intangible assets	$	1,764	$	(810	)	$	954	$	1,764	$	(779	)	$	985

In May 2013, we acquired certain intangible assets from Blue Chip, including a customer list, trade secret formulas, and a trademark (see Note 2).

Amortization expense for intangible assets for the three months ended March 31, 2014 and 2013 was $31,000 and $27,000, respectively.

Note 8. Commitments and Contingencies

Legal Proceedings and Contingencies

We are engaged in disputes and claims that arose 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. Liabilities for material claims against us are accrued when a loss is considered probable and can be reasonably estimated. Legal costs associated with claims are expensed as incurred.

On March 21, 2014, Walker Digital Table Systems (WDTS) and PJM Gaming informed the Company that International Game Technology (IGT) was in breach of an agreement under which the Company was granted a distribution license relating to RFID technology. Concurrently, WDTS and PJM Gaming filed suit against the Company in U.S. District Court for patent infringement of four patents licensed to IGT by the agreement. The Company and its counsel believe there has been no breach of the agreement and, therefore, no basis for the suit against the Company. The Company has entered into discussions with IGT and WDTS with the intent of resolving the dispute without litigation.

Commitments

On March 13, 2014, we entered into a binding letter of intent (see Exhibit 10.0) for the possible acquisition of substantially all of the assets of GemGroup Inc. and its subsidiaries (GemGroup) for $22.5 million in cash. GemGroup is a privately-held manufacturer of casino currency, cards and table layouts primarily sold under the Gemaco brand. We expect to fund the acquisition using a combination of cash and bank financing. We anticipate closing the transaction on or before June 30, 2014. However, given the uncertainty associated with due diligence, we cannot guarantee the transaction will be consummated. Pursuant to the letter of intent, we deposited $1.0 million in earnest money with a third party escrow agent. If we cannot negotiate a definitive asset purchase agreement or otherwise fail to complete the transaction other than for certain specified reasons, the earnest money may be forfeited to GemGroup.

We have exclusive rights to two patents (licensed from IGT) related to RFID for use in casino currencies, as well as any gaming table tracking system and method. This allows us to market, sell, manufacture and distribute RFID casino currency, readers and systems in the US. The patents expire in 2015. Cumulative minimum payments for these rights are $125,000.

We purchased certain security technology from an unrelated third party for use in our casino currencies under an exclusive contract which requires that we purchase a minimum of $50,000 in product each year through 2016, or $150,000 through the remaining life of the contract.

9

Note 9. Accumulated Other Comprehensive Income

Changes in accumulated other comprehensive income, net of tax, and by component for the three months ended March 31, 2014, were as follows (in thousands):

	Foreign Currency Translation			Unrealized Gains on Securities		Total
Balance at January 1, 2014	$	1,676		$	1	$	1,677
Other comprehensive loss		(20	)				(20	)
Balance at March 31, 2014	$	1,656		$	1	$	1,657

Note 10. Geographic and Product Line Information

We manufacture and sell casino table game equipment in one operating segment - casino table game products. 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. Our chief operating decision maker is our Chief Executive Officer (CEO). He manages our operations on a consolidated basis to make decisions about overall corporate resource allocation and to assess overall corporate profitability. Our CEO is also the chief operating manager for each of our entities in the United States, France and Macau; that is, the individual locations do not have “segment”, “product line” or other overall managers who report to our CEO.

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

	Three Months Ended
	March 31,
	2014				2013
Revenues:
The Americas	$	5,270	49.9	%	$	7,274	49.2	%
Asia Pacific		4,805	45.5	%		6,819	46.2	%
Europe and Africa		484	4.6	%		675	4.6	%
Total	$	10,559	100.0	%	$	14,768	100.0	%

10

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

	Three Months Ended
	March 31,
	2014				2013
Casino currency with RFID	$	3,880	36.7	%	$	4,349	29.4	%
Casino currency without RFID		2,276	21.6	%		5,077	34.5	%
Total casino currency		6,156	58.3	%		9,426	63.9	%
Playing cards		1,538	14.6	%		1,447	9.8	%
Table layouts		856	8.1	%		1,036	7.0	%
Table accessories and other products		651	6.2	%		800	5.4	%
Dice		510	4.8	%		618	4.2	%
Gaming furniture		256	2.4	%		538	3.6	%
RFID solutions		246	2.3	%		497	3.4	%
Shipping		346	3.3	%		406	2.7	%
Total	$	10,559	100.0	%	$	14,768	100.0	%

For the three months ended March 31, 2014 one casino customer accounted for 23% of revenues and in the three months ended March 31, 2013, a different customer accounted for 24% of revenues.

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

	March 31, 2014		December 31, 2013
Property and equipment, net:
France	$	4,290	$	4,502
Mexico		3,114		3,360
United States		2,935		2,987
Asia		139		147
Total	$	10,478	$	10,996

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

	March 31, 2014		December 31, 2013
Intangible assets, net:
United States	$	935	$	964
France		19		21
Total	$	954	$	985

Note 11. Stockholders’ Equity

On December 1, 2011, the Board of Directors approved a stock repurchase program which authorized the repurchase of up to 5%, or 409,951 shares, of common stock. On November 30, 2012, the Board of Directors increased the number of shares available for repurchase to 498,512 shares. From the program’s inception through March 31, 2014, we have repurchased an aggregate of 282,922 shares of our common stock at a cost of $2,066,728, or a weighted-average price of $7.30 per share. As of March 31, 2014, 215,590 shares remain authorized for repurchase.

During the quarter ended March 31, 2014, no shares were repurchased. During the quarter ended March 31, 2013, we repurchased 93,740 shares of our common stock under this program at a cost of $721,934, or a weighted-average price of $7.70 per share.

11

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 for trading plans. To assist the implementation of the program, our Board of Directors adopted a 10b5-1 Purchase Plan on December 3, 2012 (the “Plan”). As permitted by the Plan, on August 5, 2013, the Board of Directors elected to terminate the Plan effective August 12, 2013. While the Plan has been terminated, the repurchase program remains in effect. The repurchase program does not specify an expiration date and it may be suspended or discontinued at any time. In addition to terminating the 10b5-1 Plan, the Board of Directors imposed a minimum six month time period from the effective date of termination of the Plan before the Company could make any additional repurchases under the repurchase program.

Note 12. Earnings per Share (EPS)

Shares used to compute basic and diluted earnings per share from operations are as follows:

	Three Months Ended
	March 31,
	2014		2013
Weighted-average number of common shares outstanding - basic		7,916		7,986
Potential dilution from equity grants		-		69
Weighted-average number of common shares outstanding - diluted		7,916		8,055

As of March 31, 2014 and 2013, there were up to 98,606 and 69,446, respectively, shares potentially issuable under option agreements that could potentially dilute basic earnings per share in the future. For the three months ended March 31, 2014, these shares were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive to the Company’s loss.

Note 13. Subsequent event

On May 7, 2014, we informed GemGroup that we elected to terminate the Binding Letter of Intent and demanded the return of our $1.0 million dollar deposit. In the same communication, we advised GemGroup that we would be willing to consider a revised transaction. GemGroup has responded positively and we are continuing our negotiations.

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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 our Form 10-K for the period ended December 31, 2013.

For an overview and information on our products, as well as general information, see Item 1. “Business” of our Form 10-K for the period ended December 31, 2013.

Overview of Our Business

We custom manufacture and supply casino currency under the brand names of Paulson®, Bourgogne et Grasset®, Blue Chip (BC®) and Bud Jones®, including low- and high-frequency radio frequency identification device (RFID) casino currency, RFID solutions for casino currency (consisting of low- and high-frequency RFID casino currency readers, antennas, casino currency authentication software, casino currency 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 GPI Mexicana, our maquiladora manufacturing operation in Mexico), GPI SAS, and GPI Asia.  Our subsidiaries have the following distribution and product focus:

• GPI USA sells in the United States, Canada, the Caribbean, and Latin America. GPI USA sells our full product line, with most of the products manufactured at our facility in San Luis Rio Colorado, Mexico and 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, and have sales offices in Las Vegas; Atlantic City, New Jersey; and Gulfport, Mississippi.

• GPI SAS sells primarily in Europe and Africa out of its office in Beaune, France. GPI SAS predominantly sells casino currencies, including both American-style, known as chips, and European-style, 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, with an office in Macau S.A.R., China, is the exclusive distributor of GPI USA and GPI SAS products in the Asia-Pacific region. GPI Asia primarily sells casino currency, manufactured in France or in Mexico, as well as RFID product solutions.

Historically, we have experienced significant fluctuations in our quarterly operating results and expect such fluctuations to continue. These fluctuations primarily reflect the opening of new casinos, the expansion of existing casinos, or large replacement orders for casino currency, our primary product line, typically representing approximately 60% of our revenues. The timing of these events is difficult to forecast and largely beyond our ability to influence, and results in variability in our revenues and earnings. While we pursue most large projects years in advance, both large and small sales opportunities arise with little prior notice. Our backlog, which reflects signed orders, was as follows at March 31, 2014 and March 31, 2013 (in millions):

	GPI USA		GPI Asia		GPI SAS		Total
March 31, 2014	$	4.2	$	1.1	$	0.3	$	5.6
March 31, 2013	$	4.7	$	3.5	$	0.4	$	8.6

Outlook

We do not anticipate that we will benefit from any significant casino openings in 2014. However, we believe there is opportunity to support major casino expansions in the second half of the year.

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On March 13, 2014 we entered into a binding letter of intent to acquire the assets of GemGroup Inc. and its subsidiaries. Pursuant to the letter of intent, we paid an earnest money deposit of $1.0 million, which may be forfeited under certain conditions if the transaction does not close. The acquisition is subject to customary closing conditions and the negotiation of a mutually agreeable definitive asset purchase agreement. As such, we cannot provide any certainty that the transaction will be consummated. For additional information, see Part I—Item 1. Financial Statements—Condensed Consolidated Notes to Financial Statements—Note 8 and Part I—Item 1. Financial Statements—Condensed Consolidated Notes to Financial Statements—Note 13.

Financial and Operational Highlights

For the first quarter of 2014, our revenues were $10.6 million, a decrease of $4.2 million, or 28.5%, compared to revenues of $14.8 million for the same period of 2013.  For the first quarter of 2014, our net loss was $1.1 million, a decrease of $1.6 million, or 312.2%, compared to net income of $0.5 million for the same period in 2013.

The decrease in our results for the three months ended March 31, 2014, was directly attributable to the lack of casino openings/ expansions.

GPI SAS uses the euro as its functional currency. At March 31, 2014 and December 31, 2013, the US dollar to euro exchange rates were relatively unchanged at $1.38. The average exchange rates for the three months ended March 31, 2014 and 2013 were $1.37 and $1.32, respectively, which represents a 3.8% weaker dollar compared to the euro.

GPI Mexicana uses the US dollar as its functional currency. At March 31, 2014 and December 31, 2013, the Mexican peso to US dollar exchange rates were 13.08 and 13.07, respectively, which represents a 0.1% stronger dollar compared to the peso. The average exchange rates for the three months ended March 31, 2014 and 2013 were 13.23 pesos and 12.65 pesos to the US dollar, respectively, which represents a 4.6% stronger dollar compared to the Mexican peso.

GPI Asia uses the US dollar as its functional currency. At March 31, 2014 and December 31, 2013, the Macanese pataca to US dollar exchange rates were 7.83 and 7.87, respectively, which represents a 0.5% weaker dollar compared to the pataca. The average exchange rates for the three months ended March 31, 2014 and 2013 were 7.85 patacas and 7.84 patacas to the US dollar, respectively, which represents a 0.1% stronger dollar compared to the pataca.

Other Matters

In May 2013, we purchased certain assets of Blue Chip. The acquisition is part of our overall acquisition strategy to use our cash to acquire companies, products or technologies that enable us to grow and diversify our product offerings. We completed the asset acquisition on May 31, 2013 for a total consideration of $0.8 million. For additional information, see Part I—Item 1. Financial Statements—Condensed Consolidated Notes to Financial Statements—Note 2.

On December 1, 2011, our Board of Directors approved a stock repurchase program which authorized the repurchase of up to five percent, or 409,951 shares, of common stock. On November 30, 2012, the Board of Directors increased the number of shares available for repurchase to 498,512 shares. As of March 31, 2014, we have repurchased 282,922 shares and 215,590 shares remain authorized for repurchase.

On August 5, 2013, our Board of Directors voted to terminate our 10b5-1 purchase plan effective August 12, 2013. While the 10b5-1 purchase plan was terminated, the repurchase program remains in effect. However, there is no assurance that we will repurchase any additional shares under the repurchase program. For more information regarding the repurchase program, see Part I—Item 1. Financial Statements—Condensed Consolidated Notes to Financial Statements—Note 11.

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, 2013.

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RESULTS OF OPERATIONS

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

	Three Months Ended
	March 31,										Period-to-Period
	2014					2013					Change
Revenues	$	10,559		100.0	%	$	14,768		100.0	%	$	(4,209	)	(28.5	)%
Cost of revenues		7,800		73.9	%		10,488		71.0	%		(2,688	)	(25.6	)%
Gross profit		2,759		26.1	%		4,280		29.0	%		(1,521	)	(35.5	)%
Selling, administrative, and research and development		3,808		36.1	%		4,137		28.0	%		(329	)	(8.0	)%
Operating (loss) income		(1,049	)	(10.0	)%		143		1.0	%		(1,192	)	(833.6	)%
Other income and (expense)		55		0.5	%		79		0.5	%		(24	)	(30.4	)%
(Loss) income before income taxes		(994	)	(9.5	)%		222		1.5	%		(1,216	)	(547.7	)%
Income tax provision (benefit)		137		1.3	%		(311	)	(2.1	)%		448		(144.1	)%
Net (loss) income	$	(1,131	)	(10.8	)%	$	533		3.6	%	$	(1,664	)	(312.2	)%

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

	Three Months Ended
	March 31,								Period-to-Period
	2014				2013				Change
Revenues:
The Americas	$	5,270	49.9	%	$	7,274	49.2	%	$	(2,004	)	(27.6	)%
Asia Pacific		4,805	45.5	%		6,819	46.2	%		(2,014	)	(29.5	)%
Europe and Africa		484	4.6	%		675	4.6	%		(191	)	(28.3	)%
Total	$	10,559	100.0	%	$	14,768	100.0	%	$	(4,209	)	(28.5	)%

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The following tables present our revenues by product line (in thousands) and as a percentage of revenues:

	Three Months Ended
	March 31,								Period-to-Period
	2014				2013				Change
Casino currency with RFID	$	3,880	36.7	%	$	4,349	29.4	%	$	(469	)	(10.8	)%
Casino currency without RFID		2,276	21.6	%		5,077	34.5	%		(2,801	)	(55.2	)%
Total casino currency		6,156	58.3	%		9,426	63.9	%		(3,270	)	(34.7	)%
Playing cards		1,538	14.6	%		1,447	9.8	%		91		6.3	%
Table layouts		856	8.1	%		1,036	7.0	%		(180	)	(17.4	)%
Table accessories and other products		651	6.2	%		800	5.4	%		(149	)	(18.6	)%
Dice		510	4.8	%		618	4.2	%		(108	)	(17.5	)%
Gaming furniture		256	2.4	%		538	3.6	%		(282	)	(52.4	)%
RFID solutions		246	2.3	%		497	3.4	%		(251	)	(50.5	)%
Shipping		346	3.3	%		406	2.7	%		(60	)	(14.8	)%
Total	$	10,559	100.0	%	$	14,768	100.0	%	$	(4,209	)	(28.5	)%

Comparison of Operations for the Three Months Ended March 31, 2014 and 2013

Revenues. For the three months ended March 31, 2014, our revenues were $10.6 million, a decrease of $4.2 million, or 28.5%, compared to revenues of $14.8 million during the same period in 2013. The decrease in revenues was primarily attributable to the lack of casino openings/ expansions in 2014.

Cost of Revenues. For the three months ended March 31, 2014, cost of revenues was $7.8 million, a decrease of $2.7 million, or 25.6%, compared to cost of revenues of $10.5 million for the same period in 2013. As a percentage of revenues, our cost of revenues increased to 73.9% in 2014 compared to 71.0% in 2013.

Gross Profit. For the three months ended March 31, 2014, gross profit was $2.8 million, a decrease of $1.5 million, or 35.5%, compared to gross profit of $4.3 million for the same period in 2013. As a percentage of revenues, our gross profit decreased from 29.0% to 26.1%. This is mainly due to a decrease in sales of our currency products which caused fixed manufacturing costs to be allocated over lower production volumes.

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

	Three Months Ended
	March 31,								Period-to-Period
	2014				2013				Change
Marketing and sales	$	1,303	12.3	%	$	1,505	10.2	%	$	(202	)	(13.4	)%
General and administrative		2,068	19.7	%		2,099	14.2	%		(31	)	(1.5	)%
Research and development		437	4.1	%		533	3.6	%		(96	)	(18.0	)%
Total selling, administrative, and research and development	$	3,808	36.1	%	$	4,137	28.0	%	$	(329	)	(8.0	)%

For the three months ended March 31, 2014, selling, administrative, and research and development expenses were $3.8 million, a decrease of $0.3 million, or 8.0%, compared to selling, administrative, and research and development expenses of $4.1 million during the same period in 2013. Selling, administrative, and research and development expenses increased as a percent of revenue to 36.1% in the first three months of 2014 from 28.0% in the same period in 2013.

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Marketing and sales expenses decreased by $0.2 million during the third quarter of 2014, compared to the same period in 2013. This is primarily due to a decrease of $0.1 million in compensation.

General and administrative expenses, and research and development expenses remained relatively unchanged in the first quarter of 2014 compared to the same period in 2013.

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

	Three Months Ended
	March 31,										Period-to-Period
	2014					2013					Change
Interest income	$	78		0.7	%	$	61		0.4	%	$	17		27.9	%
Other income		2		0.0	%		6		0.0	%		(4	)	(66.7	)%
Interest expense		-		0.0	%		(2	)	0.0	%		2		(100.0	)%
(Loss) gain on foreign currency transactions		(25	)	(0.2	)%		14		0.1	%		(39	)	(278.6	)%
Total other income and (expense)	$	55		0.5	%	$	79		0.5	%	$	(24	)	(30.4	)%

Income Taxes. Our effective income tax rate for the three months ended March 31, 2014 and 2013 was (13.78%) and (140.01)%, respectively. Our effective tax rate for the three months ended March 31, 2014 was unfavorably affected by an increase in our valuation allowance related to foreign tax credits, offset by a favorable impact from the foreign rate differential on income from our Macau subsidiary, GPI Asia, and the benefit from a research credit from our French subsidiary, GPI SAS. Without the increase in the valuation allowance related to foreign tax credits, our effective tax rate for the three months ended March 31, 2014 would have been 17.60%.

Our effective tax rate for the three months ended March 31, 2013 differed from the statutory rate primarily due to the release of valuation allowance related to foreign tax credits, combined with the foreign rate differential on income from our Macau subsidiary, GPI Asia and the benefit from a research credit from our French subsidiary, GPI SAS.

We account for uncertain tax positions in accordance with applicable accounting guidance. There were no unrecognized tax benefits reported at March 31, 2014 or December 31, 2013.

Liquidity and Capital Resources

Sources of Liquidity and Capital Resources. Our primary source of liquidity and capital resources has been cash from operations. Other sources of liquidity and capital resources 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 operational working capital, capital expenditures, any purchases of common stock under our stock repurchase program, litigation, potential dividends or acquisitions.

At March 31, 2014, we had $13.8 million in cash and cash equivalents and $5.9 million in marketable securities, totaling $19.7 million. Of this amount, $10.5 million is held by GPI USA, $6.8 million is held by GPI SAS, and $2.4 million is held by GPI Asia. Of those amounts held outside of the United States, we would be subject to taxation in the United States if we were to repatriate those amounts, though foreign tax credits may be available to offset such taxes. We may repatriate amounts from GPI SAS and, accordingly, our financial statements reflect the tax impacts that would result from repatriation. We do not anticipate repatriation from GPI Asia and, accordingly, our financial statements do not reflect the tax impacts that would result from repatriation.

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

	March 31,		December 31,		Period-to-Period
	2014		2013		Change
Cash and cash equivalents	$	13,813	$	14,492	$	(679	)	(4.7	)%
Marketable securities		5,855		5,724		131		2.3	%
Working capital		31,986		32,069		(83	)	(0.3	)%
Current ratio		6.0		6.3

At March 31, 2014, working capital totaled $32.0 million, a decrease of $0.1 million, or 0.3%, compared to working capital of $32.1 million at December 31, 2013. The change in working capital was due to an increase in current liabilities of $0.4 million, offset by an increase in current assets of $0.3 million.. The increase in current liabilities was due primarily to an increase of $0.6 million in customer deposits and deferred revenue, offset by a $0.2 million decrease in accounts payable. The increase in current assets was due primarily to an increase in other current assets of $1.3 million, offset by decreases in cash, cash equivalents and marketable securities of $0.5 million, accounts receivables of $0.4 million, and prepaid expenses of $0.1 million.

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

	Three Months Ended
	March 31,						Period-to-Period
	2014			2013			Change
Operating activities	$	513		$	(932	)	$	1,445		(155.0	)%
Investing activities		(1,189	)		4,839			(6,028	)	(124.6	)%
Financing activities		-			(722	)		722		(100.0	)%
Effect of exchange rates		(3	)		(271	)		268		(98.9	)%
Net change	$	(679	)	$	2,914		$	(3,593	)	(123.3	)%

The increase in cash flows provided by operating activities was primarily caused by an increase in liabilities of $3.1 million, offset by a decrease in assets of $1.3 million and a decrease in non-cash items of $0.3 million.

The decrease in cash flows provided by investing activities was primarily due to a decrease in net sales of marketable securities of $5.5 million to fund our cash requirements offset by the payment of a $1.0 million deposit for the acquisition of GemGroup Inc. (see Part I—Item 1. Financial Statements—Condensed Consolidated Notes to Financial Statements—Note 8), offset by a decrease in capital expenditures of $0.6 million during the three months ended March 31, 2014, compared to the same period in 2013.

The decrease in cash flows used by financing activities was due to the lack of common stock repurchases in the three months ended March 31, 2014.

Capital Expenditures. We plan to purchase approximately $0.9 million in property, plant, and equipment during the remainder of 2014. In the first quarter of 2014, we purchased $0.1 million of property, plant, and equipment.

Cash Dividend. Our Board of Directors has no current plans to pay a regular dividend on our common stock, but may evaluate the merit of paying a dividend from time to time.

Backlog. At March 31, 2014, our backlog of signed orders for 2014 was $5.6 million, consisting of $4.2 million for GPI USA, $1.1 million for GPI Asia, and $0.3 million for GPI SAS. At March 31, 2013, our backlog of signed orders for 2013 was $8.6 million, consisting of $4.7 million for GPI USA, $3.5 million for GPI Asia, and $0.4 million for GPI SAS.

Contractual Obligations and Commercial Commitments

There was no material change in our contractual obligations and commercial commitments during the three months ended March 31, 2014.

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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 our ability 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 our Form 10-K for the period ended December 31, 2013. 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.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Our management, including the Chief Executive Officer and Chief Financial Officer, has conducted an evaluation of the effectiveness of our disclosure controls and procedures pursuant to Exchange Act Rules 13a-15(e) and 15d-15(e) as of March 31, 2014. Based upon this evaluation, our Chief Executive Officer and our Chief Financial Officer have concluded that, as of March 31, 2014, the end of the period covered by this Form 10-Q, our 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 March 31, 2014, that materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

None.

ITEM 1A. RISK FACTORS

None, except as set forth in Item 1A, “Risk Factors,” of our Form 10-K for the period ended December 31, 2013.

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

No common shares were repurchased by the Company in the first quarter of 2014.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

None

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ITEM 6. EXHIBITS

10.0	GemGroup Inc. - GPI binding letter of intent
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.

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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: May 13, 2014	By:	/s/ Gregory S. Gronau
		Gregory S. Gronau
		President and Chief Executive Officer
Date: May 13, 2014	By:	/s/ Michael D. Mann
		Michael D. Mann
		Chief Financial Officer, Treasurer and Secretary

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EX-10.0

March 13, 2014

CONFIDENTIAL

GemGroup Inc. 2925

N. 7 Highway

Blue Springs, Missouri 64014

Dear GemGroup Inc.:

Gaming Partners International Corporation, 1700 Industrial Road, Las Vegas, NV 89102 ("GPIC") is pleased to submit this Binding Letter of Intent (the "BLOI") to GemGroup, Inc., 2925 N. 7 Highway, Blue Springs, Missouri 64014 (together with its subsidiaries Gemaco Inc., GemAsia LLC, and GemTech LLC) (collectively, "GemGroup"), which sets forth the terms upon which GPIC or its designated affiliates ("Buyer"} will purchase substantially all of the tangible and intangible assets (the "Assets") of GemGroup, free and clear of all liens, claims and encumbrances (the "Transaction"). At the consummation of the Transaction (the "Closing''), Buyer will assume the ordinary course liabilities of GemGroup reflected in the Closing Date Balance Sheet (as defined below), and GemGroup's future obligations under contracts and permits transferred to Buyer as part of the Assets. Buyer will not assume any liabilities in respect of outstanding indebtedness of GemGroup, which indebtedness will be satisfied from the sales proceeds at the Closing, or any undisclosed, pre-Closing liabilities.

The Transaction is subject to the terms and conditions contained herein. This BLOI is based upon, among other things, the preliminary investigation undertaken by GPIC through the date hereof.

GPIC and GemGroup agree as follows:

A.          Buyer will continue the existing Gemaco manufacturing operations in Blue Springs, Missouri for at least five (5) years after the date of Closing.

B.         During due diligence, GPIC and Jason Fitzhugh will negotiate in good faith a three-year employment agreement with compensation at least commensurate with GPIC employees at a similar level. The employment agreement shall include three-year post termination non-competition and non-solicitation provisions acceptable to GPIC.

···················································································································································

GAMING PARTNERS INTERNATIONAL CORPORATION | THE AMERICAS ∙ EUROPE ∙ ASIA

1700 INDUSTRIAL ROAD | LAS VEGAS, NEVADA 89102 | UNITED STATES OF AMERICA

tel: +1.702.384.2425 | f x: +1.702.384.1965 | gpigaming.com

C.           At the Closing, Danny Carpenter, Kaye Summers and Jason Fitzhugh will each enter into three-year agreements: (i) not to engage, directly or indirectly, for themselves or on behalf of another, in the business of designing, manufacturing or selling to gaming, promotional products and injection molding industries, playing cards, table game layouts and elements, gaming and promotional chips, table accessories and injection molded parts (collectively, the "Products") anywhere in the world, (ii) not to solicit any customers of GemGroup for the purposes of selling any Products on behalf of anyone other than Buyer, and (iii) not to solicit for employment or hire any employees of GPIC or Buyer (including any former GemGroup employees).

D.          Promptly following GemGroup's acceptance of this BLOI, GPIC will, with the assistance of GemGroup, apply for all necessary approvals from gaming commissions and other regulatory agencies for consummation of the purchase and sale.

Section 1. PURCHASE PRICE AND PAYMENT TERMS. At the Closing, and subject to the other conditions set forth herein and in any definitive Asset Purchase Agreement (as discussed below), GPIC will pay GemGroup $22,500,000 for the Assets, plus or minus any working capital adjustment as described below (the "Purchase Price"). Within two business days after GemGroup's acceptance of this BLOI, GPIC will transfer a good faith deposit of $1,000,000 to BOKF, N.A. or another mutually agreeable escrow agent, which deposit shall be non-refundable except as hereafter provided (together with any escrow earnings, the "Non-Refundable Deposit"). The Purchase Price assumes that GemGroup will transfer working capital (calculated as provided below) at the Closing at least equal to the consolidated working capital of GemGroup as of December 31, 2013, as determined from the balance sheet included in the Audited 2013 Financial Statements (as defined in Section 10 below) (the "Target Working Capital"). For this purpose, working capital shall be determined by subtracting current liabilities to be assumed (consisting of accounts payable and accrued expenses) from current assets to be acquired (consisting of net accounts receivable, net inventory and pre-paid expenses the benefit of which will be received by Buyer). The Purchase Price will be increased or decreased based upon the amount by which the working capital transferred at the Closing exceeds or falls short of the Target Working Capital. For purposes of the Closing, the parties will estimate in good faith any working capital adjustment based on the most recently available information. The working capital adjustment will be subject to true-up within ninety (90) days following the Closing to reflect the actual working capital transferred, based on a closing date balance sheet to be prepared by Buyer and reviewed by GemGroup (the "Closing Date Balance Sheet"). Buyer will prepare the Closing Date Balance Sheet in accordance with GAAP, and as if the Closing date were the end of the fiscal year. Any disputes regarding the working capital adjustment that the parties cannot amicably resolve will be referred for final resolution to a mutually agreeable, independent CPA firm. Buyer and GemGroup will each pay one-half of any fees or expenses of such accounting firm.

It is agreed that the Transaction will be structured as an asset purchase transaction. Buyer will pay the Purchase Price at the Closing (net of the Non-Refundable Deposit). The net Purchase Price payable at Closing will be applied as follows: first, to satisfy any indebtedness encumbering the Assets, and second, the balance will be payable to GemGroup by wire transfer of immediately available funds to an account designated in writing by GemGroup at least two business days prior to the scheduled Closing (subject to either escrow or holdback provisions in the following paragraph, if applicable).

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GAMING PARTNERS INTERNATIONAL CORPORATION | THE AMERICAS ∙ EUROPE ∙ ASIA

1700 INDUSTRIAL ROAD | LAS VEGAS, NEVADA 89102 | UNITED STATES OF AMERICA

tel: +1.702.384.2425 | f x: +1.702.384.1965 | gpigaming.com

At Closing, GemGroup will transfer the sum of $2,000,000 to HSBC or another mutually agreeable escrow agent for a period of two years to provide security for GemGroup's covenants and indemnities in this BLOI and in the Asset Purchase Agreement (defined below) under an Escrow Agreement to be entered into at Closing. If any unresolved Buyer claims against GemGroup are pending as of five business days prior to the expiration of the escrow, the Escrow Agreement will provide for a continuation of the escrow in an amount up to the maximum exposure of the Buyer on the unresolved claims, but not to exceed $2,000,000.

Section 2. The Assets of GemGroup to be transferred will be all of the assets of GemGroup (except as excluded below) and will include the following:

(i) All rights regarding any current and future manufacturing (including any licenses to use the patents or technology utilized by GemGroup to manufacture its Products), and all other intellectual property (including without limitation all trademarks, websites and URLs, know-how, trade secrets and other confidential information and the right to sue for past infringement or misappropriation of any intellectual property) and information technology rights, including all business records (the "Intellectual Property");

(ii) All rights to use all of GemGroup's requisite technology, and assignment of all vendor and supplier agreements;

(iii) All raw materials, WIP, and finished goods inventory;

(iv) All existing customer lists and contracts;

(v) All permits and governmental authorizations, to the extent transferable;

(vi) All accounts receivable;

(vii) All land, buildings and fixed and mobile equipment;

(viii) All pre-paid expenses or other current assets;

(ix) All rights under any confidentiality agreements, invention or copyright assignments, and any restrictive covenant agreements for the benefit of GemGroup;

(x) All goodwill of the GemGroup business or associated with the Assets; and

(xi) All claims or rights against third parties relating to the other Assets acquired.

GemGroup will retain any cash or cash equivalents, along with the shares or LLC interests in its subsidiaries and their related corporate and tax records, provided Buyer will be entitled to have access to such records post-Closing as reasonably necessary in connection with its operation of the Assets or conduct of its business.

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GAMING PARTNERS INTERNATIONAL CORPORATION | THE AMERICAS ∙ EUROPE ∙ ASIA

1700 INDUSTRIAL ROAD | LAS VEGAS, NEVADA 89102 | UNITED STATES OF AMERICA

tel: +1.702.384.2425 | f x: +1.702.384.1965 | gpigaming.com

At the Closing, as additional consideration for the Assets, Buyer will assume all ordinary course trade accounts payable and accrued expenses of GemGroup (other than any amounts due to GemGroup's shareholders, subsidiaries or affiliates). Buyer will also assume GemGroup's postClosing obligations under any permits transferred to Buyer in the Assets and under all of GemGroup's executory contracts (other than any liabilities in respect of pre-Closing breaches). Promptly following the execution of this BLOI, Buyer and GemGroup will cooperate in good faith to obtain any required consents of third parties for assignment of all such contracts. Buyer will indemnify and hold harmless GemGroup from all post-Closing obligations under such contracts (other than those arising from pre-Closing breaches), whether or not any required consent of the other party or parties to the contracts is obtained. GemGroup will remain responsible for (and will indemnify and hold harmless Buyer and its related parties against) all threatened or pending litigation matters based on or arising out of events or omissions occurring prior to Closing, taxes due prior to Closing and other undisclosed liabilities, whether fixed or contingent, of GemGroup.

Section 3. DUE DILIGENCE: Subject to being provided prompt access to requested materials and personnel, GPIC expects that it will complete its due diligence review of the Assets and the proposed Transaction from financial, accounting, operational, market, and competitive perspectives within sixty (60) days after GemGroup has provided substantially all materials requested in GPIC's original due diligence request list. In addition, during such period GPIC will perform confirmatory gaming, intellectual property, environmental, insurance, benefits, labor, legal and tax reviews. GemGroup agrees to provide to GPIC, its agents, advisors, representatives, and prospective lenders, full and complete access to such books, records, facilities, officers, employees and advisors as may be regarded as necessary or desirable by GPIC and its agents in connection with their review. GPIC must complete each of the above reviews to its reasonable satisfaction. GPIC is prepared to deliver an initial due diligence request list within ten days following the acceptance of this BLOI. No investigation made by GPIC will limit or affect the representations, warranties, covenants and indemnities of GemGroup under this BLOI or the Asset Purchase Agreement.

GemGroup has previously delivered to GPIC the audited consolidated balance sheet and statements of income, shareholders' equity (or deficit), and cash flows of GemGroup, as at and for the fiscal years ended December 31, 2009, 2010, 2011 and 2012 (the "Historical Financial Statements"), and the unaudited consolidated statement of income of GemGroup for the fiscal year ended December 31, 2013 (the "Unaudited 2013 Financial Statement''). In the Asset Purchase Agreement (defined below), GemGroup will represent and warrant that the Historical Financial Statements and Unaudited 2013 Financial Statement: (a) are true and correct in all material respects; (b) have been prepared in accordance with GAAP, consistently applied; (c) present fairly the financial condition and the results of operations of GemGroup and its subsidiaries as of the date(s) and for the period(s) therein indicated; and (d) are consistent with the books and records of GemGroup prepared in the ordinary course of business.

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GAMING PARTNERS INTERNATIONAL CORPORATION | THE AMERICAS ∙ EUROPE ∙ ASIA

1700 INDUSTRIAL ROAD | LAS VEGAS, NEVADA 89102 | UNITED STATES OF AMERICA

tel: +1.702.384.2425 | f x: +1.702.384.1965 | gpigaming.com

Section 4. EXECUTION OF AGREEMENT; CLOSING: The parties intend to negotiate an asset purchase agreement relating to the Transaction (the "Asset Purchase Agreement'') consistent with the terms of this BLOI, which will be drafted by GPIC's attorneys and which will contain customary representations, warranties and covenants (including indemnities) by GemGroup and by GPI, as well as any provisions to address matters discovered in due diligence, certain of which would survive the Closing for the applicable timeframes outlined in the Asset Purchase Agreement. A representative list of customary topics to be addressed by such representations and warranties is attached as Exhibit A. GPIC will deliver an initial draft of the Asset Purchase Agreement to GemGroup within sixty (60) calendar days of acceptance of this proposal. GPIC anticipates signing the Asset Purchase Agreement and closing the Transaction within 120 calendar days after acceptance of this BLOI by GemGroup. The parties agree to negotiate in good faith, and use their reasonable commercial efforts to agree on the form of the definitive Asset Purchase Agreement.

Unless otherwise provided in the Asset Purchase Agreement, the Closing will take place on June 30, 2014, or such other date as the parties may agree in writing. Buyer's obligation to proceed with the Closing is subject to receipt of necessary regulatory (if any) and third party approvals for the transaction, and such other customary conditions precedent as may be set forth in the Asset Purchase Agreement except third party approvals for the assignment of GemGroup's contracts. GemGroup's obligation to proceed with the Closing is subject to receipt of necessary regulatory approvals for the transaction (if any) and such other customary conditions precedent as may be set forth in the Asset Purchase Agreement.

Section 5. EXCLUSIVITY: In consideration of GPIC's payment of the Non-Refundable Deposit and incurrence of costs in connection with the conduct of its due diligence, the preparation and negotiation of the Asset Purchase Agreement, and seeking regulatory consents, GemGroup agrees that, from their acceptance of this BLOI until the date that is four months after such acceptance, GemGroup will not, and will cause its affiliates and their respective officers, directors, stockholders, employees and agents not to, initiate, encourage (including by way of furnishing any non-public information concerning GemGroup, the Assets or business), solicit, conduct or continue any negotiations or discussions with or enter into any agreement with any third party (other than GPIC or its affiliates), relating to the acquisition of all or any portion of GemGroup of any of its subsidiaries, or any of their respective assets or business (whether by merger, share purchase, asset purchase, lease, exclusive license, or otherwise), other than, in each case, the sale of goods in accordance with past practices and other transactions in the ordinary course of business for the sale of products consistent with past practices.

Section 6. PUBLIC ANNOUNCEMENT. GPIC will provide a public announcement (the "Public Announcement") on behalf of both parties (which Public Announcement shall include an appropriate filing with the Securities and Exchange Commission by GPIC) of the Transaction contemplated by this BLOI. GemGroup will be given a reasonable opportunity to provide input on the Public Announcement as it relates to any information or statements regarding GemGroup. GemGroup acknowledges that GPIC will be required to file a form 8-K regarding this BLOI and the Transaction in accordance with applicable securities laws and SEC requirements.

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GAMING PARTNERS INTERNATIONAL CORPORATION | THE AMERICAS ∙ EUROPE ∙ ASIA

1700 INDUSTRIAL ROAD | LAS VEGAS, NEVADA 89102 | UNITED STATES OF AMERICA

tel: +1.702.384.2425 | f x: +1.702.384.1965 | gpigaming.com

Section 7. CONFIDENTIALITY: Except as provided in Section 6 above, neither the parties to this BLOI nor any of their affiliates or their respective officers, directors, stockholders, employees, or agents shall make any public announcement or issue any press release or other publicity in respect of the Transaction without the prior written consent of the other party (except as such disclosures are required in applications or by applicable securities or gaming laws or stock market rules). The parties agree that, except as provided in Section 6 above, the Non-Disclosure Agreement dated February 5, 2014, the terms of which are hereby incorporated herein by this reference, shall continue in full force and effect, until the Closing.

Section 8. EXPENSES: Whether or not the Transaction is consummated, each party to this BLOI shall be responsible for its own fees and expenses incurred in connection with its preparation and negotiation and of this BLOI, the Asset Purchase Agreement and the Transaction, including the fees and disbursements of its respective counsel, advisors, finders, accountants or other experts. The parties shall equally share the fees and other expenses of the escrow agents for the escrows provided in Section 1. Each party shall be solely responsible for the fees of its respective broker or finder, if any.

Section 9. TERMINATION: This BLOI may be terminated by either party, at any time and for any reason, by written notice to the other party at any time prior to the execution of the Asset Purchase Agreement or the Closing, whichever occurs first. Upon any such termination, this BLOI shall terminate and become void and of no further force and effect, except for the provisions related to the payment of the Non-Refundable Deposit and Sections 7, 8 and 9 which shall survive in accordance with their respective terms.

In the event GPIC terminates this BLOI due to:

A. A lack of regulatory approval by any of the States of California, Pennsylvania, Nevada, Missouri, New Jersey, Washington, Michigan and Indiana in the United States or the Province of British Columbia in Canada or lack of regulatory approval by any Native American gaming agency in Florida, Connecticut or California for a Native American casino customer from which GemGroup received revenues of at least $50,000 in 2013; provided, however, that the Closing will be extended by up to one hundred twenty (120) days if necessary to obtain any such regulatory approvals.

B. Lack of good faith negotiations by GemGroup in connection with the Asset Purchase Agreement or intentional delays in the Closing by GemGroup;

C. Lack of good faith negotiations by Jason Fitzhugh in connection with his employment agreement;

D. Any material inaccuracy in the Historical Financial Statements, any failure to deliver the Audited 2013 Financial Statements, or any material discrepancy between the Unaudited 2013 Financial Statement and the Audited 2013 Financial Statements other than the matter disclosed in item 2 of Exhibit B below;

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GAMING PARTNERS INTERNATIONAL CORPORATION | THE AMERICAS ∙ EUROPE ∙ ASIA

1700 INDUSTRIAL ROAD | LAS VEGAS, NEVADA 89102 | UNITED STATES OF AMERICA

tel: +1.702.384.2425 | f x: +1.702.384.1965 | gpigaming.com

E. The occurrence since December 31, 2013, of any action, event, condition or circumstance, that, individually or in the aggregate, has had or could reasonably be expected to have a material adverse effect on, or a material adverse change in, the operations, condition (financial or otherwise), results of operations, prospects, assets, liabilities or reserves of GemGroup, provided, however, that when determining whether there has been a Material Adverse Change, any adverse change attributable to any of the following shall be disregarded: (i) general economic, business, industry or financial market conditions (whether in the United States or otherwise), but that do not disproportionately affect GemGroup; (ii) the taking of any action required by this BLOI or the Asset Purchase Agreement; (iii) the announcement of the transactions contemplated hereby; (iv) the breach of this BLOI or the Asset Purchase Agreement by GPIC, (v) any changes in applicable laws, regulations or accounting rules, including GAAP; (vi) any existing event, occurrence or circumstance set forth in the disclosure schedule to the Asset Purchase Agreement; and (vii) any adverse change in or effect on the business of GemGroup that is cured by or on behalf of GemGroup to the reasonable satisfaction of GPIC before the termination of this BLOI (a "Material Adverse Change");

F. Any material environmental condition at any owned real property in the Assets, or for which GPIC might otherwise be held liable as a result of its ownership of the Assets or operation of the business;

G. Any material misrepresentation or breach of any covenant herein by GemGroup or GemGroup's refusal to provide customary representations and warranties as reflected on Exhibit A to this BLOI in connection with any Asset Purchase Agreement (which representations and warranties will be subject to disclosed exceptions, including those matters disclosed on Exhibit B to this BLOI, provided that such disclosures do not include any material liabilities not reflected in the Historical Financial Statements or the Unaudited Financial Statements, other than the matter disclosed in item 2 of Exhibit B below and ordinary course trade accounts payable and accrued expenses);

then in any such case the escrow agent will return the entire Non-Refundable Deposit to GPIC. Otherwise, the escrow agent will pay the entire Non-Refundable Deposit to GemGroup as full liquidated damages, provided GemGroup executes and delivers to GPIC and its related parties a written release of all claims.

This BLOI will terminate automatically if the Asset Purchase Agreement has not been executed by the parties by June 30, 2014, and the escrow agent will pay the entire Non-Refundable Deposit to GemGroup as full liquidated damages, provided GemGroup executes and delivers to GPIC and its related parties a written release of all claims.

If this BLOI is terminated by GemGroup for any reason other than material breach of this BLOI by GPIC, the escrow agent will return the entire Non-Refundable Deposit to GPIC.

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GAMING PARTNERS INTERNATIONAL CORPORATION | THE AMERICAS ∙ EUROPE ∙ ASIA

1700 INDUSTRIAL ROAD | LAS VEGAS, NEVADA 89102 | UNITED STATES OF AMERICA

tel: +1.702.384.2425 | f x: +1.702.384.1965 | gpigaming.com

Upon any termination, the parties agree promptly to execute written directions to the escrow agent to disburse the Non-Refundable Deposit in accordance herewith.

In the event this BLOI is terminated (other than by virtue of the Closing or the execution of the Asset Purchase Agreement), for a period of two years from such termination, GPIC agrees not to, and to cause its subsidiaries not to, directly or indirectly, employ, attempt to employ or solicit in any way any employee of GemGroup for other employment or to provide consulting or similar services (provided that general advertising to the public through newspapers or similar means not directed at GemGroup or its employees will not constitute a solicitation of employees of GemGroup).

Section 10. CONDUCT OF BUSINESS: From the date GemGroup accepts this BLOI through the Closing or the termination of this BLOI, GemGroup will: (i) (a) conduct its business in a reasonable and prudent manner in accordance with past practices, (b) use reasonable efforts to preserve its existing business organizations and relations with its employees, customers, suppliers, landlords, regulators and others with whom it has a business relationship, (c) use reasonable efforts to preserve and protect its properties, assets and rights (including permits and other governmental approvals) and conduct its business in compliance with all applicable laws and regulations, and (d) promptly notify GPIC of any Material Adverse Change, and (ii) not (a) enter into any contract or binding customer or vendor commitment having an aggregate dollar value in excess of $250,000 or a duration greater than one year without giving prior written notice to GPIC stating the customer or vendor name and the contract amount and duration, nor (b) intentionally take any action which is reasonably likely to have a material adverse effect on the Assets and rights, of GemGroup to be purchased, without the prior approval of GPIC. Without limiting the foregoing, GemGroup agrees that it will not make any material change in its accounting methods or practices, other than as required by changes in GAAP or applicable law, in the manner of keeping its books and records, or in its current practices with respect to customer contracts, sales, receivables, inventories, inventory valuation, payables or accrued expenses. GemGroup will cause to be finalized as soon as reasonably practicable, but not later than March 31, 2014 (and will deliver or cause to be delivered to GPIC promptly upon issuance by the third party accountants of GemGroup), the audited consolidated balance sheet and statements of income, shareholder's equity (or deficit), and cash flows of GemGroup, as at and for the fiscal year ended December 31, 2013 (the "Audited 2013 Financial Statements").

Following the Closing, GemGroup will provide reasonable assistance in transferring the business to Buyer. In furtherance of the foregoing, GemGroup grants to Buyer, effective as of the Closing, the power, right and authority, coupled with an interest, to receive, endorse, cash, deposit, and otherwise deal with in GemGroup’s name, any checks, drafts, documents and instruments evidencing payment of any accounts receivable or other payment rights included in the Assets and that are payable to or to the order of, or endorsed in favor of, GemGroup or any agent thereof. GemGroup agrees promptly to endorse and pay over or cause to be endorsed and paid over to Buyer, without deduction or offset, the full amount of any payment received by GemGroup or any of its agents after the Closing in respect of goods sold or services rendered as part of the business, and shall hold any such amounts in trust for Buyer pending such payment.

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GAMING PARTNERS INTERNATIONAL CORPORATION | THE AMERICAS ∙ EUROPE ∙ ASIA

1700 INDUSTRIAL ROAD | LAS VEGAS, NEVADA 89102 | UNITED STATES OF AMERICA

tel: +1.702.384.2425 | f x: +1.702.384.1965 | gpigaming.com

Section 11. GOVERNING LAW: This BLOI shall be governed by and construed in accordance with the laws of the State of Missouri, without giving effect to the principles of conflict of laws thereof. The exclusive forum for the determination of any action relating to this BLOI or the Asset Purchase Agreement shall be an appropriate court in the County of Jackson, State of Missouri.

Section 12. ENTIRE AGREEMENT; COUNTERPARTS: This BLOI supersedes all prior understandings among the parties hereto except the Non-Disclosure Agreement dated February 5, 2014. This BLOI may be executed in one or more counterparts, each of which shall be an original, but all of which together shall constitute one and the same agreement.

Section 13. REPRESENTATIONS AND COVENANTS:

(i) GemGroup hereby represents to GPIC that, as of the date of this BLOI and up to the date of Closing: GemGroup has and will have good and marketable title to all Assets purported to be owned by it (including those reflected in the Financial Statements) and a valid leasehold interest in all leased Assets, in each case free and clear of all liens, claims and encumbrances of any kind (other than liens securing indebtedness to be satisfied at or prior to the Closing); the Assets constitute all of the assets and properties necessary or desirable to conduct business as presently conducted by GemGroup, including without limitation, the exclusive license, or non-exclusive licenses entered into in the ordinary course of business, to use the Intellectual Property, and neither the BLOI nor the Transaction violates or breaches or will violate or breach any agreement or understanding with any other person, except that GemGroup does not represent that the BLOI or the Transaction will not violate or breach any contractual clause precluding assignment without the consent of the other party (but GemGroup does represent and warrant that not more than five of Gemaco's contracts (not including customer issued purchase orders) with customers producing revenue for Gemaco over $50,000 in 2013 require a consent of the other party in connection with the Transaction). GemGroup covenants and agrees that, under no circumstances, shall it intentionally take any action that will harm or injure the rights or business relationship of any other person as a result of this BLOI or GPIC's purchase of the Assets or otherwise. GemGroup covenants to have in place at the Closing and maintain in place for three (3) years after Closing general and products liability insurance policy (or policies) with aggregate limits of $8,000,000 (except the limit on a separate product liability policy covering aircraft will be $5,000,000), and if requested by GPIC, GemGroup will use its best efforts to have GPIC named as an additional insured thereunder with any cost of doing so to be paid by GPIC. GemGroup covenants and agrees to defend, indemnify and hold harmless GPIC, its affiliates and their respective agents, employees, officers, directors, consultants, successors and assigns, from and against any and all liabilities and claims, including, without limitation, future liabilities and claims by third parties, for demands, suits, actions, liabilities, losses, damages, injuries, judgments, costs and expenses (including reasonable attorneys' fees and costs), directly or indirectly arising from any untruth, inaccuracy or breach of any representations, covenants or agreements made by GemGroup in this BLOI or in the Asset Purchase Agreement, any indebtedness or other obligations of GemGroup which GPIC has not agreed herein to assume, and any other excluded liabilities, claims or losses, whether or not known at Closing, except that the foregoing indemnity shall not apply in respect of any matter arising out of or related to (a) a breach of any representation, warranty or covenant of GPIC in this BLOI or the Asset Purchase Agreement or (b) any pre-Closing act or omission by GPIC or any of its representatives.

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GAMING PARTNERS INTERNATIONAL CORPORATION | THE AMERICAS ∙ EUROPE ∙ ASIA

1700 INDUSTRIAL ROAD | LAS VEGAS, NEVADA 89102 | UNITED STATES OF AMERICA

tel: +1.702.384.2425 | f x: +1.702.384.1965 | gpigaming.com

(ii) GPIC represents and warrants that it has all necessary approvals and licenses to manufacture and sell playing cards, gaming table coverings and gaming chips in all States of the United States and all Provinces of Canada in which GemGroup's subsidiary, Gemaco Inc., is licensed by the relevant gaming authorities (as previously disclosed by GemGroup) and in the country of Panama. GPIC covenants and agrees to defend, indemnify and hold harmless GemGroup, its affiliates and their respective agents, employees, officers, directors, consultants, successors and assigns, from and against any and all liabilities and claims, including, without limitation, future liabilities and claims by third parties, for demands, suits, actions, liabilities, losses, damages, injuries, judgments, costs and expenses (including reasonable attorneys' fees and costs), directly or indirectly arising from any untruth, inaccuracy or breach of any representations, covenants or agreements made by GPIC in this BLOI or in the Asset Purchase Agreement and arising from post-Closing operations of the former businesses of GemGroup and from use of the Assets post-Closing, except that the foregoing indemnity shall not apply in respect of any matter arising out of or related to (a) a breach of any representation, warranty or covenant of GemGroup in this BLOI or the Asset Purchase Agreement, (b) any excluded liability retained by GemGroup, or (c) any pre-Closing act or omission by GemGroup or any of its representatives.

(iii) The foregoing will be incorporated into the Asset Purchase Agreement.

(iv) Except in the case of fraud, GemGroup's maximum aggregate liability for breach of representations and warranties (including indemnity obligations) will be $4,000,000. GemGroup will not have any liability for such breaches of representations or warranties until the aggregate loss to all Buyer indemnities combined exceeds $100,000, except that the foregoing basket will not apply to breaches of the representations and warranties relating to title to assets. The limitations of this subsection do not apply to GemGroup's indemnity obligations in respect of any excluded liabilities (pending or threatened litigation, regulatory actions, customer claims referenced on Exhibit B below or fraud). The representations, warranties and covenants referenced in this subsection include those contained in this BLOI and in the Asset Purchase Agreement.

(v) By their execution below, the shareholders of GemGroup agree to be jointly and severally liable with GemGroup in respect of its indemnification obligations under this BLOI and the Asset Purchase Agreement, provided that the shareholders maximum aggregate liability hereunder will not exceed $2 million, provided that such limitation shall not apply (and such obligation shall be unlimited) with respect to income taxes and existing or pending litigation.

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GAMING PARTNERS INTERNATIONAL CORPORATION | THE AMERICAS ∙ EUROPE ∙ ASIA

1700 INDUSTRIAL ROAD | LAS VEGAS, NEVADA 89102 | UNITED STATES OF AMERICA

tel: +1.702.384.2425 | f x: +1.702.384.1965 | gpigaming.com

[Remainder of Page Intentionally Blank]

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GAMING PARTNERS INTERNATIONAL CORPORATION | THE AMERICAS ∙ EUROPE ∙ ASIA

1700 INDUSTRIAL ROAD | LAS VEGAS, NEVADA 89102 | UNITED STATES OF AMERICA

tel: +1.702.384.2425 | f x: +1.702.384.1965 | gpigaming.com

If the foregoing correctly sets forth the understanding of the parties hereto, please so indicate by executing both originals of this BLOI in the spaces provided below and returning one fully executed original to us. GPI reserves the right to withdraw this BLOI at any time prior to GPI's receipt of such written acceptance by GemGroup and its shareholders.

Very truly yours,
GAMING PARTNERS INTERNATIONAL CORPORATION
By:	/s/ Gregory S. Gronau
	Name: Gregory S. Gronau
	Title: President and Chief Executive Officer

Agreed and accepted as of March 13, 2014

By:	/s/ D. Kaye Summers
	Name: D. Kaye Summers
	Title: President and Chief Executive Officer

D. Kaye Summers and Danny R. Carpenter agree to be bound by paragraph C and §13 (v) of this BLOI:

By:	/s/ D. Kaye Summers
	Name: D. Kaye Summers
By:	/s/ Danny R. Carpenter
	Name: Danny R. Carpenter

Jason A. Fitzhugh agrees to be bound by paragraphs B and C and §13 (v) of this BLOI:

By:	/s/ Jason A. Fitzhugh
	Name: Jason A. Fitzhugh

···················································································································································

GAMING PARTNERS INTERNATIONAL CORPORATION | THE AMERICAS ∙ EUROPE ∙ ASIA

1700 INDUSTRIAL ROAD | LAS VEGAS, NEVADA 89102 | UNITED STATES OF AMERICA

tel: +1.702.384.2425 | f x: +1.702.384.1965 | gpigaming.com

Exhibit A

Customary Representations and Warranties (subject to disclosed exceptions)

· GemGroup has good title to the Assets purported to be owned by it (including those reflected in the Financial Statements) and a valid leasehold interest in all leased Assets, in each case, free and clear of all claims, liens and encumbrances

· GemGroup DISC LLC has no assets used or held for use (tangible or intangible) in connection with the business

· Audited financial statements are correct in all material respects, in accordance with GAAP, consistently applied, fairly present the financial situation and results of operations as of their respective dates, and are consistent with GemGroup's books and records maintained in the ordinary course

· Inventory is good and saleable, subject to applicable reserves reflected in the Closing Date Balance Sheet

· Tangible Assets material to the operation of GemGroup's business in the ordinary course are operational and in reasonable repair, ordinary wear and tear excepted

· Equipment maintenance has not been deferred with respect to equipment that is material to the operation of GemGroup's business in the ordinary course.

· GemGroup has all required permits and licenses, and is and has been in material compliance with all applicable laws, regulations and permits

· Complete copies of all material contracts and governmental/judicial restrictions have been delivered; neither GemGroup nor, to GemGroup's knowledge, any counterparty is in default under any contract

· No customer that has purchased more than $50,000 worth of products in the last twelve months has notified GemGroup that it intends to discontinue doing business with, or materially change the terms on which it does business with, GemGroup

· All taxes have been correctly filed and paid when due

· All known liabilities are recorded in the books

· Disclosure of all pending and, to GemGroup's knowledge, threatened litigation, claims, government investigations, audits, arbitrations or similar proceedings

· A reasonable insurance program is in effect; accurate disclosure of 3 years insurance loss

runs

· To GemGroup's knowledge, there has been no Material Adverse Change since 12/31113

· Employees are terminable at will (except as specifically disclosed) and employee benefit programs are at reasonable levels given the location of the facilities and nature of the business; there are no defined benefit or multi-employer pension plan obligations, none of the employees is represented by a union, and there are no collective bargaining agreements in effect

···················································································································································

GAMING PARTNERS INTERNATIONAL CORPORATION | THE AMERICAS ∙ EUROPE ∙ ASIA

1700 INDUSTRIAL ROAD | LAS VEGAS, NEVADA 89102 | UNITED STATES OF AMERICA

tel: +1.702.384.2425 | f x: +1.702.384.1965 | gpigaming.com

Exhibit B

Disclosures Relating to Assets and Business of GemGroup

1. New Jersey litigation-two lawsuits are pending related to use of a pre-shuffled pack of eight decks by the Golden Nugget Casino.

2. Items covered by 2013 reserve for one time items in the amount of approximately $170,000— customer issues involving claims of defective products.

3. Supplier issue involving claim made by Gemaco against supplier for defective products provided to Gemaco customers.

4. The roof of Gemaco's building in Blue Springs, Missouri has had relatively minor leaks from time to time for at least the last 11 years. We believe the issue relates to the original design of the building and gutters. We have found that it is considerably more economical for the Gemaco maintenance department to deal with the leaks than to make the major modifications that would be required to stop the leaks.

···················································································································································

GAMING PARTNERS INTERNATIONAL CORPORATION | THE AMERICAS ∙ EUROPE ∙ ASIA

1700 INDUSTRIAL ROAD | LAS VEGAS, NEVADA 89102 | UNITED STATES OF AMERICA

tel: +1.702.384.2425 | f x: +1.702.384.1965 | gpigaming.com

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: May 13, 2014	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, Michael D. Mann, 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: May 13, 2014	By:	/s/ Michael D. Mann
		Michael D. Mann Chief Financial Officer, Treasurer and Secretary

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 March 31, 2014, as filed with the Securities and Exchange Commission (SEC) on the date hereof (the Report), Gregory S. Gronau, as Chief Executive Officer, and Michael D. Mann, 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: May 13, 2014	By:	/s/ Gregory S. Gronau
		Gregory S. Gronau
		President and Chief Executive Officer
Date: May 13, 2014	By:	/s/ Michael D. Mann
		Michael D. Mann
		Chief Financial Officer, Treasurer and Secretary

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) (USD $) In Thousands, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2014	Dec. 31, 2013
Finite-Lived Intangible Assets [Line Items]
Intangible assets, Gross Carrying Amount	$ 1,764	$ 1,764
Intangible assets, Accumulated Amortization	(810)	(779)
Intangible assets, Net Carrying Amount	954	985
Trademarks [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, Gross Carrying Amount	631	631
Intangible assets, Accumulated Amortization	(253)	(240)
Intangible assets, Net Carrying Amount	378	391
Trademarks [Member] | Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, Estimated Useful Life (Years)	10 years	10 years
Trademarks [Member] | Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, Estimated Useful Life (Years)	12 years	12 years
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, Gross Carrying Amount	517	517
Intangible assets, Accumulated Amortization	(481)	(480)
Intangible assets, Net Carrying Amount	36	37
Patents [Member] | Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, Estimated Useful Life (Years)	13 years	13 years
Patents [Member] | Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, Estimated Useful Life (Years)	14 years	14 years
Customer List [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, Gross Carrying Amount	513	513
Intangible assets, Accumulated Amortization	(43)	(30)
Intangible assets, Net Carrying Amount	470	483
Intangible assets, Estimated Useful Life (Years)	10 years	10 years
Licensing Agreements [Member] | Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, Estimated Useful Life (Years)	1 year	1 year
Licensing Agreements [Member] | Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, Estimated Useful Life (Years)	3 years	3 years
Other Intangible Assets [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, Gross Carrying Amount	103	103
Intangible assets, Accumulated Amortization	(33)	(29)
Intangible assets, Net Carrying Amount	$ 70	$ 74
Other Intangible Assets [Member] | Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, Estimated Useful Life (Years)	5 years	5 years
Other Intangible Assets [Member] | Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, Estimated Useful Life (Years)	10 years	10 years

XML

Stockholders' Equity (Details Textual) (USD $)	3 Months Ended		28 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Nov. 30, 2012	Dec. 01, 2011
Equity, Class of Treasury Stock [Line Items]
Stock Repurchase Program, Number of Shares Authorized to be Repurchased					409,951
Stock Repurchase Program, Number of Shares Authorized to be Repurchased, Percentage					5.00%
Stock Repurchase Program, Number of Shares Available to be Repurchased				498,512
Stock Repurchased Program, Shares Outstanding	215,590		215,590
Stock Repurchased During Period, Shares	0	93,740	282,922
Stock Repurchased During Period, Value		$ 721,934	$ 2,066,728
Stock Repurchased Program, Weighted Average Price Per Share		$ 7.70	$ 7.30

XML

Geographic and Product Line Information (Details 3) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Segment Reporting Information [Line Items]
Intangible assets, net	$ 954	$ 985
United States [Member]
Segment Reporting Information [Line Items]
Intangible assets, net	935	964
France [Member]
Segment Reporting Information [Line Items]
Intangible assets, net	$ 19	$ 21

XML

Accounts Receivable and Allowance for Doubtful Accounts (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		12 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Accounts, Notes, Loans and Financing Receivable [Line Items]
Balance at Beginning of Year	$ 114	$ 152	$ 152
Provision (Benefit)	38	29	(39)
Write-offs, Net of Recoveries	0		0
Exchange Rate Effect	0		1
Balance at End of Period	$ 152		$ 114

XML

Property and Equipment (Tables)

3 Months Ended

Mar. 31, 2014

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment [Table Text Block]

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

	March 31, 2014		December 31, 2013
Land	$	1,791	$	1,792
Buildings and improvements		8,896		8,897
Equipment and furniture		21,836		21,801
Vehicles		474		475
		32,997		32,965
Less accumulated depreciation		(22,519)		(21,969)
Property and equipment, net	$	10,478	$	10,996

XML

Earnings per Share (EPS) (Details Textual)	3 Months Ended
	Mar. 31, 2014
Impairment Effects on Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	98,606

XML

Accumulated Other Comprehensive Income (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Accumulated Other Comprehensive Income (Loss) [Line Items]
Foreign Currency Translation, Beginning Balance	$ 1,676
Foreign Currency Translation, Other comprehensive loss	(20)	(659)
Foreign Currency Translation, Ending Balance	1,656
Unrealized Gains on Securities, Beginning Balance	1
Unrealized Gains on Securities, Other comprehensive loss
Unrealized Gains on Securities, Ending Balance	1
Accumulated other comprehensive income, Beginning Balance	1,677
Accumulated other comprehensive income, Other comprehensive loss	(20)	(659)
Accumulated other comprehensive income, Ending Balance	$ 1,657

XML

Property and Equipment (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Property, Plant and Equipment [Line Items]
Land	$ 1,791	$ 1,792
Buildings and improvements	8,896	8,897
Equipment and furniture	21,836	21,801
Vehicles	474	475
Property, Plant and Equipment, Gross	32,997	32,965
Less accumulated depreciation	(22,519)	(21,969)
Property and equipment, net	$ 10,478	$ 10,996

XML

Geographic and Product Line Information (Details Textual) (Customer One [Member])	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Customer One [Member]
Segment Reporting Information [Line Items]
Sales Revenue, Goods, Net, Percentage	23.00%	24.00%

XML

Acquisition

3 Months Ended

Mar. 31, 2014

Business Combinations [Abstract]

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

Note 2. Acquisition

In May 2013, we purchased certain assets of The Blue Chip Company, LLC (Blue Chip), a privately-held manufacturer of compression-molded gaming chips. The acquisition is part of our overall acquisition strategy to use our cash position to acquire companies, products or technologies that enable us to grow and diversify our product offerings. We completed the acquisition of Blue Chip on May 31, 2013 for total consideration of $0.8 million. We did not present pro forma results of operations, actual results of operations from the acquisition date through December 31, 2013, or other disclosure required for business combinations, because the acquisition was not material.

XML

Geographic and Product Line Information (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Segment Reporting Information [Line Items]
Revenues	$ 10,559	$ 14,768
Revenues, Percentage	100.00%	100.00%
The Americas [Member]
Segment Reporting Information [Line Items]
Revenues	5,270	7,274
Revenues, Percentage	49.90%	49.20%
Asia Pacific [Member]
Segment Reporting Information [Line Items]
Revenues	4,805	6,819
Revenues, Percentage	45.50%	46.20%
Europe and Africa [Member]
Segment Reporting Information [Line Items]
Revenues	$ 484	$ 675
Revenues, Percentage	4.60%	4.60%

XML

Earnings per Share (EPS) (Tables)

3 Months Ended

Mar. 31, 2014

Earnings Per Share [Abstract]

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

Shares used to compute basic and diluted earnings per share from operations are as follows:

	Three Months Ended
	March 31,
	2014		2013
Weighted-average number of common shares outstanding - basic		7,916	7,986
Potential dilution from equity grants		-	69
Weighted-average number of common shares outstanding - diluted		7,916	8,055

XML

Geographic and Product Line Information (Tables)

3 Months Ended

Mar. 31, 2014

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
	March 31,
	2014					2013
Revenues:
The Americas	$	5,270	49.9	%	$	7,274	49.2	%
Asia Pacific		4,805	45.5	%		6,819	46.2	%
Europe and Africa		484	4.6	%		675	4.6	%
Total	$	10,559	100.0	%	$	14,768	100.0	%

Schedule of Product Revenue [Table Text Block]

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

	Three Months Ended
	March 31,
	2014				2013
Casino currency with RFID	$	3,880	36.7	%	$	4,349	29.4	%
Casino currency without RFID		2,276	21.6	%		5,077	34.5	%
Total casino currency		6,156	58.3	%		9,426	63.9	%
Playing cards		1,538	14.6	%		1,447	9.8	%
Table layouts		856	8.1	%		1,036	7.0	%
Table accessories and other products		651	6.2	%		800	5.4	%
Dice		510	4.8	%		618	4.2	%
Gaming furniture		256	2.4	%		538	3.6	%
RFID solutions		246	2.3	%		497	3.4	%
Shipping		346	3.3	%		406	2.7	%
Total	$	10,559	100.0	%	$	14,768	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):

	March 31, 2014		December 31, 2013
Property and equipment, net:
France	$	4,290	$	4,502
Mexico		3,114		3,360
United States		2,935		2,987
Asia		139		147
Total	$	10,478	$	10,996

Schedule of Intangible Assets and Goodwill [Table Text Block]

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

	March 31, 2014		December 31, 2013
Intangible assets, net:
United States	$	935	$	964
France		19		21
Total	$	954	$	985

XML

Geographic and Product Line Information (Details 1) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Segment Reporting Information [Line Items]
Revenues	$ 10,559	$ 14,768
Revenues, Percentage	100.00%	100.00%
Casino With RFID [Member]
Segment Reporting Information [Line Items]
Revenues	3,880	4,349
Revenues, Percentage	36.70%	29.40%
Casino Without RFID [Member]
Segment Reporting Information [Line Items]
Revenues	2,276	5,077
Revenues, Percentage	21.60%	34.50%
Total Casino [Member]
Segment Reporting Information [Line Items]
Revenues	6,156	9,426
Revenues, Percentage	58.30%	63.90%
Playing Cards [Member]
Segment Reporting Information [Line Items]
Revenues	1,538	1,447
Revenues, Percentage	14.60%	9.80%
Table Layouts [Member]
Segment Reporting Information [Line Items]
Revenues	856	1,036
Revenues, Percentage	8.10%	7.00%
Table Accessories and Other Products [Member]
Segment Reporting Information [Line Items]
Revenues	651	800
Revenues, Percentage	6.20%	5.40%
Dice [Member]
Segment Reporting Information [Line Items]
Revenues	510	618
Revenues, Percentage	4.80%	4.20%
Gaming Furniture [Member]
Segment Reporting Information [Line Items]
Revenues	256	538
Revenues, Percentage	2.40%	3.60%
RFID Solutions [Member]
Segment Reporting Information [Line Items]
Revenues	246	497
Revenues, Percentage	2.30%	3.40%
Shipping [Member]
Segment Reporting Information [Line Items]
Revenues	$ 346	$ 406
Revenues, Percentage	3.30%	2.70%

XML

Acquisition (Details Textual) (Blue Chip Acquisition [Member], USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	May 31, 2013
Blue Chip Acquisition [Member]
Business Acquisition [Line Items]
Business Acquisitions, Cost of Acquired Entity, Purchase Price		$ 0.8
Business Acquisition, Effective Date of Acquisition	May 31, 2013

XML

Cash, Cash Equivalents, and Marketable Securities (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2013	Dec. 31, 2012
Cash and Cash Equivalents [Line Items]
Cash and Cash Equivalents	$ 13,813	$ 14,492	$ 16,952	$ 14,038
Marketable Securities	5,855	5,724
Total	19,668	20,216
United States [Member]
Cash and Cash Equivalents [Line Items]
Cash and Cash Equivalents	10,484	11,052
Marketable Securities	0	0
Total	10,484	11,052
France [Member]
Cash and Cash Equivalents [Line Items]
Cash and Cash Equivalents	940	344
Marketable Securities	5,855	5,724
Total	6,795	6,068
Macau S.A.R., China [Member]
Cash and Cash Equivalents [Line Items]
Cash and Cash Equivalents	2,389	3,096
Marketable Securities	0	0
Total	$ 2,389	$ 3,096

XML

Nature of Business and Significant Accounting Policies

3 Months Ended

Mar. 31, 2014

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) is headquartered in Las Vegas, Nevada and has three operating subsidiaries: Gaming Partners International USA, Inc. (GPI USA) (including GPI Mexicana, our maquiladora manufacturing operation in Mexico), Gaming Partners International SAS (GPI SAS), and Gaming Partners International Asia Limited (GPI Asia).  Our subsidiaries have the following distribution and product focus:

• GPI USA sells in the United States, Canada, the Caribbean, and Latin America. GPI USA sells our full product line, with most of the products manufactured at our facility in San Luis Rio Colorado, Mexico and 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, and have sales offices in Las Vegas; Atlantic City, New Jersey; and Gulfport, Mississippi.

• GPI SAS sells primarily in Europe and Africa out of its office in Beaune, France. GPI SAS predominantly sells casino currencies, including both American-style, known as chips, and European-style, 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, with an office in Macau S.A.R., China, is the exclusive distributor of GPI USA and GPI SAS products in the Asia-Pacific region. GPI Asia primarily sells casino currency, manufactured in France or in Mexico, as well as radio frequency identification device (RFID) product solutions.

GPIC was formed in 2002 through a combination between Paul-Son Gaming Corporation and Bourgogne et Grasset S.A. initiated by the late Francois Carrette, whose firm, Holding Wilson, S.A., remains GPIC’s controlling stockholder. We have established brand names such as Paulson^®, Bourgogne et Grasset^® (BG^®), Blue Chip (BC^®), and Bud Jones^®. GPIC and each of its subsidiaries are sometimes collectively referred to herein as the “Company,” “us,” “we” or “our.” 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 currencies to casinos in Monaco.

Our business activities include the manufacture and supply of casino currencies, table layouts, playing cards, gaming furniture, table accessories, dice, roulette wheels, and RFID readers and software, all of which are used 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 (US GAAP) 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, 2013.

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.

Recently Issued Accounting Standards. We determined that no recently issued accounting standards apply to our current financials.

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Cash, Cash Equivalents, and Marketable Securities (Details 1) (USD $) In Thousands, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2014	Dec. 31, 2013
Schedule of Available-for-sale Securities [Line Items]
Cost	$ 5,855	$ 5,724
Unrealized Gain/(Loss)	0	0
Fair Value	5,855	5,724
Certificates of Deposit [Member]
Schedule of Available-for-sale Securities [Line Items]
Cost	4,125	4,680
Unrealized Gain/(Loss)	0	0
Fair Value	4,125	4,680
Bond Mutual Funds [Member]
Schedule of Available-for-sale Securities [Line Items]
Cost	1,730	1,044
Unrealized Gain/(Loss)	0	0
Fair Value	$ 1,730	$ 1,044

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Intangible Assets (Details Textual) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Finite-Lived Intangible Assets [Line Items]
Amortization Of Intangible Assets	$ 31	$ 27

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CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Current Assets:
Cash and cash equivalents	$ 13,813	$ 14,492
Marketable securities	5,855	5,724
Accounts receivable, net	5,540	5,905
Inventories	7,406	7,407
Prepaid expenses	828	965
Deferred income tax asset	623	628
Other current assets	4,375	3,054
Total current assets	38,440	38,175
Property and equipment, net	10,478	10,996
Intangibles, net	954	985
Deferred income tax asset	3,216	3,643
Inventories, non-current	175	175
Other assets	1,435	1,475
Total assets	54,698	55,449
Current Liabilities:
Accounts payable	2,045	2,291
Accrued liabilities	2,899	2,918
Customer deposits and deferred revenue	1,272	646
Income taxes payable	238	251
Total current liabilities	6,454	6,106
Deferred income tax liability	1,870	1,870
Total liabilities	8,324	7,976
Commitments and contingencies - see Note 8
Stockholders' Equity:
Preferred stock, authorized 10,000,000 shares, $.01 par value, none issued and outstanding	0	0
Common stock, authorized 30,000,000 shares, $.01 par value, 8,207,077 and 7,916,094 issued and outstanding, respectively	82	82
Additional paid-in capital	19,823	19,771
Treasury stock at cost: 290,983 shares	(2,262)	(2,262)
Retained earnings	27,074	28,205
Accumulated other comprehensive income	1,657	1,677
Total stockholders' equity	46,374	47,473
Total liabilities and stockholders' equity	$ 54,698	$ 55,449

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Geographic and Product Line Information (Details 2) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Segment Reporting Information [Line Items]
Property and equipment, net	$ 10,478	$ 10,996
France [Member]
Segment Reporting Information [Line Items]
Property and equipment, net	4,290	4,502
Mexico [Member]
Segment Reporting Information [Line Items]
Property and equipment, net	3,114	3,360
United States [Member]
Segment Reporting Information [Line Items]
Property and equipment, net	2,935	2,987
Asia [Member]
Segment Reporting Information [Line Items]
Property and equipment, net	$ 139	$ 147

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CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) In Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Treasury Stock [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income [Member]
Balance at Dec. 31, 2012	$ 46,621	$ 82	$ 19,563	$ (1,250)	$ 27,039	$ 1,187
Balance (in shares) at Dec. 31, 2012		8,045,904
Net income (loss)	533	0	0	0	533	0
Repurchases of common stock	(722)	0	0	(722)	0	0
Repurchases of common stock (in shares)		(93,740)
Stock compensation expense	57	0	57	0	0	0
Foreign currency translation adjustment	(659)	0	0	0	0	(659)
Balance at Mar. 31, 2013	45,830	82	19,620	(1,972)	27,572	528
Balance (in shares) at Mar. 31, 2013		7,952,164
Balance at Dec. 31, 2013	47,473	82	19,771	(2,262)	28,205	1,677
Balance (in shares) at Dec. 31, 2013		7,916,094
Net income (loss)	(1,131)	0	0	0	(1,131)	0
Stock compensation expense	52	0	52	0	0	0
Foreign currency translation adjustment	(20)	0	0	0	0	(20)
Balance at Mar. 31, 2014	$ 46,374	$ 82	$ 19,823	$ (2,262)	$ 27,074	$ 1,657
Balance (in shares) at Mar. 31, 2014		7,916,094

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Inventories (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Inventory [Line Items]
Raw materials	$ 5,200	$ 4,957
Work in progress	660	937
Finished goods	1,721	1,688
Total inventories	$ 7,581	$ 7,582

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Cash, Cash Equivalents, and Marketable Securities (Tables)

3 Months Ended

Mar. 31, 2014

Cash and Cash Equivalents [Abstract]

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

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

	March 31, 2014						December 31, 2013
	Cash and Cash Equivalents		Marketable Securities		Total		Cash and Cash Equivalents		Marketable Securities		Total
United States	$	10,484	$	-	$	10,484	$	11,052	$	-	$	11,052
France		940		5,855		6,795		344		5,724		6,068
Macau S.A.R., China		2,389		-		2,389		3,096		-		3,096
Total	$	13,813	$	5,855	$	19,668	$	14,492	$	5,724	$	20,216

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 banks and bond mutual funds (in thousands):

	March 31, 2014						December 31, 2013
	Cost		Unrealized Gain/(Loss)		Fair Value		Cost		Unrealized Gain/(Loss)		Fair Value
Certificates of deposit	$	4,125	$	-	$	4,125	$	4,680	$	-	$	4,680
Bond mutual funds		1,730		-		1,730		1,044		-		1,044
Total marketable securities	$	5,855	$	-	$	5,855	$	5,724	$	-	$	5,724

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Inventories (Details 1) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Inventory [Line Items]
Current	$ 7,406	$ 7,407
Non-current	175	175
Total inventories	$ 7,581	$ 7,582

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Inventories (Tables)

3 Months Ended

Mar. 31, 2014

Inventory Disclosure [Abstract]

Schedule of Inventory, Current [Table Text Block]

Inventories consist of the following (in thousands):

	March 31, 2014		December 31, 2013
Raw materials	$	5,200	$	4,957
Work in progress		660		937
Finished goods		1,721		1,688
Total inventories	$	7,581	$	7,582

Schedule of Inventory, Noncurrent [Table Text Block]

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

	March 31, 2014		December 31, 2013
Current	$	7,406	$	7,407
Non-current		175		175
Total inventories	$	7,581	$	7,582

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Cash Flows from Operating Activities
Net (loss) income	$ (1,131)	$ 533
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities:
Depreciation	565	551
Amortization of intangible assets	31	27
Provision for bad debt	38	29
Deferred income taxes	431	(884)
Stock compensation expense	52	57
(Gain) on sale of marketable securities	(1)	(5)
Change in operating assets and liabilities:
Accounts receivable	325	704
Inventories	(5)	301
Prepaid expenses and other current assets	(186)	432
Non-current other assets	40	36
Accounts payable	(243)	(146)
Customer deposits and deferred revenue	626	(1,510)
Accrued liabilities	(17)	(1,141)
Income taxes payable	(12)	84
Net cash provided by (used in) operating activities	513	(932)
Cash Flows from Investing Activities
Purchases of marketable securities	(5,204)	0
Proceeds from sale of marketable securities	5,068	5,547
Initial deposit on business acquisition	(1,000)	0
Capital expenditures	(53)	(708)
Net cash (used in) provided by investing activities	(1,189)	4,839
Cash Flows from Financing Activities
Repurchases of common stock	0	(722)
Net cash used in financing activities	0	(722)
Effect of exchange rate changes on cash	(3)	(271)
Net (decrease) increase in cash and cash equivalents	(679)	2,914
Cash and cash equivalents, beginning of period	14,492	14,038
Cash and cash equivalents, end of period	13,813	16,952
Supplemental disclosure of cash flow information:
Cash paid for income taxes, net of refunds	$ 11	$ 371

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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, shares authorized	30,000,000	30,000,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares issued	8,207,077	8,207,077
Common stock, shares outstanding	7,916,094	7,916,094
Treasury stock, shares	290,983	290,983

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Geographic and Product Line Information

3 Months Ended

Mar. 31, 2014

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 products. 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. Our chief operating decision maker is our Chief Executive Officer (CEO). He manages our operations on a consolidated basis to make decisions about overall corporate resource allocation and to assess overall corporate profitability. Our CEO is also the chief operating manager for each of our entities in the United States, France and Macau; that is, the individual locations do not have “segment”, “product line” or other overall managers who report to our CEO.

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

	Three Months Ended
	March 31,
	2014					2013
Revenues:
The Americas	$	5,270	49.9	%	$	7,274	49.2	%
Asia Pacific		4,805	45.5	%		6,819	46.2	%
Europe and Africa		484	4.6	%		675	4.6	%
Total	$	10,559	100.0	%	$	14,768	100.0	%

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

	Three Months Ended
	March 31,
	2014				2013
Casino currency with RFID	$	3,880	36.7	%	$	4,349	29.4	%
Casino currency without RFID		2,276	21.6	%		5,077	34.5	%
Total casino currency		6,156	58.3	%		9,426	63.9	%
Playing cards		1,538	14.6	%		1,447	9.8	%
Table layouts		856	8.1	%		1,036	7.0	%
Table accessories and other products		651	6.2	%		800	5.4	%
Dice		510	4.8	%		618	4.2	%
Gaming furniture		256	2.4	%		538	3.6	%
RFID solutions		246	2.3	%		497	3.4	%
Shipping		346	3.3	%		406	2.7	%
Total	$	10,559	100.0	%	$	14,768	100.0	%

For the three months ended March 31, 2014 one casino customer accounted for 23% of revenues and in the three months ended March 31, 2013, a different customer accounted for 24% of revenues.

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

	March 31, 2014		December 31, 2013
Property and equipment, net:
France	$	4,290	$	4,502
Mexico		3,114		3,360
United States		2,935		2,987
Asia		139		147
Total	$	10,478	$	10,996

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

	March 31, 2014		December 31, 2013
Intangible assets, net:
United States	$	935	$	964
France		19		21
Total	$	954	$	985

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Document And Entity Information	3 Months Ended
	Mar. 31, 2014	May 05, 2014
Document Information [Line Items]
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		7,916,094
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2014
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2014

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Stockholders' Equity

3 Months Ended

Mar. 31, 2014

Stockholders' Equity Note [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

Note 11. Stockholders’ Equity

On December 1, 2011, the Board of Directors approved a stock repurchase program which authorized the repurchase of up to 5%, or 409,951 shares, of common stock. On November 30, 2012, the Board of Directors increased the number of shares available for repurchase to 498,512 shares. From the program’s inception through March 31, 2014, we have repurchased an aggregate of 282,922 shares of our common stock at a cost of $2,066,728, or a weighted-average price of $7.30 per share. As of March 31, 2014, 215,590 shares remain authorized for repurchase.

During the quarter ended March 31, 2014, no shares were repurchased. During the quarter ended March 31, 2013, we repurchased 93,740 shares of our common stock under this program at a cost of $721,934, or a weighted-average price of $7.70 per share.

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 for trading plans. To assist the implementation of the program, our Board of Directors adopted a 10b5-1 Purchase Plan on December 3, 2012 (the “Plan”). As permitted by the Plan, on August 5, 2013, the Board of Directors elected to terminate the Plan effective August 12, 2013. While the Plan has been terminated, the repurchase program remains in effect. The repurchase program does not specify an expiration date and it may be suspended or discontinued at any time. In addition to terminating the 10b5-1 Plan, the Board of Directors imposed a minimum six month time period from the effective date of termination of the Plan before the Company could make any additional repurchases under the repurchase program. 

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Revenues	$ 10,559	$ 14,768
Cost of revenues	7,800	10,488
Gross profit	2,759	4,280
Marketing and sales	1,303	1,505
General and administrative	2,068	2,099
Research and development	437	533
Operating (loss) income	(1,049)	143
Other income and (expense), net	55	79
(Loss) income before income taxes	(994)	222
Income tax provision (benefit)	137	(311)
Net (loss) income	$ (1,131)	$ 533
Earnings per share:
Basic (in dollars per share)	$ (0.14)	$ 0.07
Diluted (in dollars per share)	$ (0.14)	$ 0.07
Weighted-average shares of common stock outstanding:
Basic (in shares)	7,916	7,986
Diluted (in shares)	7,916	8,055

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Inventories

3 Months Ended

Mar. 31, 2014

Inventory Disclosure [Abstract]

Inventory Disclosure [Text Block]

Note 5. Inventories

Inventories consist of the following (in thousands):

	March 31, 2014		December 31, 2013
Raw materials	$	5,200	$	4,957
Work in progress		660		937
Finished goods		1,721		1,688
Total inventories	$	7,581	$	7,582

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):

	March 31, 2014		December 31, 2013
Current	$	7,406	$	7,407
Non-current		175		175
Total inventories	$	7,581	$	7,582

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Accounts Receivable and Allowance for Doubtful Accounts

3 Months Ended

Mar. 31, 2014

Valuation and Qualifying Accounts [Abstract]

Schedule of Valuation and Qualifying Accounts Disclosure [Text Block]

Note 4. Accounts Receivable and Allowance for Doubtful Accounts

At March 31, 2014, three casino customers accounted for 20%, 14% and 14% of our accounts receivable balance, respectively. At December 31, 2013, we had one casino customer that accounted for 10% of our accounts receivable balance.

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

	Balance at Beginning of Year		Provision (Benefit)		Write-offs, Net of Recoveries		Exchange Rate Effect		Balance at End of Period
March 31, 2014	$	114	$	38	$	-	$	-	$	152
December 31, 2013	$	152	$	(39)	$	-	$	1	$	114

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Accounts Receivable and Allowance for Doubtful Accounts (Tables)

3 Months Ended

Mar. 31, 2014

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 at Beginning of Year		Provision (Benefit)		Write-offs, Net of Recoveries		Exchange Rate Effect		Balance at End of Period
March 31, 2014	$	114	$	38	$	-	$	-	$	152
December 31, 2013	$	152	$	(39)	$	-	$	1	$	114

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Earnings per Share (EPS)

3 Months Ended

Mar. 31, 2014

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

Note 12. Earnings per Share (EPS)

Shares used to compute basic and diluted earnings per share from operations are as follows:

	Three Months Ended
	March 31,
	2014		2013
Weighted-average number of common shares outstanding - basic		7,916	7,986
Potential dilution from equity grants		-	69
Weighted-average number of common shares outstanding - diluted		7,916	8,055

As of March 31, 2014 and 2013, there were up to 98,606 and 69,446, respectively, shares potentially issuable under option agreements that could potentially dilute basic earnings per share in the future. For the three months ended March 31, 2014, these shares were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive to the Company’s loss.

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2014

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

Note 8. Commitments and Contingencies

Legal Proceedings and Contingencies

We are engaged in disputes and claims that arose 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. Liabilities for material claims against us are accrued when a loss is considered probable and can be reasonably estimated. Legal costs associated with claims are expensed as incurred.

On March 21, 2014, Walker Digital Table Systems (WDTS) and PJM Gaming informed the Company that International Game Technology (IGT) was in breach of an agreement under which the Company was granted a distribution license relating to RFID technology. Concurrently, WDTS and PJM Gaming filed suit against the Company in U.S. District Court for patent infringement of four patents licensed to IGT by the agreement. The Company and its counsel believe there has been no breach of the agreement and, therefore, no basis for the suit against the Company. The Company has entered into discussions with IGT and WDTS with the intent of resolving the dispute without litigation.

Commitments

On March 13, 2014, we entered into a binding letter of intent (see Exhibit 10.0) for the possible acquisition of substantially all of the assets of GemGroup Inc. and its subsidiaries (GemGroup) for $22.5 million in cash. GemGroup is a privately-held manufacturer of casino currency, cards and table layouts primarily sold under the Gemaco brand. We expect to fund the acquisition using a combination of cash and bank financing. We anticipate closing the transaction on or before June 30, 2014. However, given the uncertainty associated with due diligence, we cannot guarantee the transaction will be consummated. Pursuant to the letter of intent, we deposited $1.0 million in earnest money with a third party escrow agent. If we cannot negotiate a definitive asset purchase agreement or otherwise fail to complete the transaction other than for certain specified reasons, the earnest money may be forfeited to GemGroup.

We have exclusive rights to two patents (licensed from IGT) related to RFID for use in casino currencies, as well as any gaming table tracking system and method. This allows us to market, sell, manufacture and distribute RFID casino currency, readers and systems in the US. The patents expire in 2015. Cumulative minimum payments for these rights are $125,000.

We purchased certain security technology from an unrelated third party for use in our casino currencies under an exclusive contract which requires that we purchase a minimum of $50,000 in product each year through 2016, or $150,000 through the remaining life of the contract. 

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Property and Equipment

3 Months Ended

Mar. 31, 2014

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):

	March 31, 2014		December 31, 2013
Land	$	1,791	$	1,792
Buildings and improvements		8,896		8,897
Equipment and furniture		21,836		21,801
Vehicles		474		475
		32,997		32,965
Less accumulated depreciation		(22,519)		(21,969)
Property and equipment, net	$	10,478	$	10,996

Depreciation expense for the three months ended March 31, 2014 and 2013 was $565,000 and $551,000 respectively.

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Intangible Assets

3 Months Ended

Mar. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets Disclosure [Text Block]

Note 7. Intangible Assets

Intangible assets consist of the following (in thousands):

	March 31, 2014						December 31, 2013
	Gross Carrying Amount		Accum. Amort.		Net Carrying Amount		Gross Carrying Amount		Accum. Amort.		Net Carrying Amount		Estimated Useful Life (Years)
Trademarks	$	631	$	(253)	$	378	$	631	$	(240)	$	391		10-12
Patents		517		(481)		36		517		(480)		37		13-14
Customer list		513		(43)		470		513		(30)		483		10
Other intangible assets		103		(33)		70		103		(29)		74		5-10
Total intangible assets	$	1,764	$	(810)	$	954	$	1,764	$	(779)	$	985

In May 2013, we acquired certain intangible assets from Blue Chip, including a customer list, trade secret formulas, and a trademark (see Note 2).

Amortization expense for intangible assets for the three months ended March 31, 2014 and 2013 was $31,000 and $27,000, respectively.

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Accumulated Other Comprehensive Income

3 Months Ended

Mar. 31, 2014

Equity [Abstract]

Comprehensive Income (Loss) Note [Text Block]

Note 9. Accumulated Other Comprehensive Income

Changes in accumulated other comprehensive income, net of tax, and by component for the three months ended March 31, 2014, were as follows (in thousands):

	Foreign  Currency  Translation		Unrealized  Gains on  Securities		Total
Balance at January 1, 2014	$	1,676	$	1	$	1,677
Other comprehensive loss		(20)				(20)
Balance at March 31, 2014	$	1,656	$	1	$	1,657

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Accounts Receivable and Allowance for Doubtful Accounts (Details Textual)	Mar. 31, 2014	Dec. 31, 2013
Customer One [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Entity Wide Receivable, Major Customer, Percentage	20.00%	10.00%
Customer Two [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Entity Wide Receivable, Major Customer, Percentage	14.00%
Customer Three [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Entity Wide Receivable, Major Customer, Percentage	14.00%

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Subsequent Event (Details Textual) (Subsequent Event [Member], USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014
Subsequent Event [Member]
Subsequent Event [Line Items]
Return of Earnst Money Deposit	$ 1.0

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Nature of Business and Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2014

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 (US GAAP) 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, 2013.

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.

New Accounting Pronouncements, Policy [Policy Text Block]

Recently Issued Accounting Standards. We determined that no recently issued accounting standards apply to our current financials.

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Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

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

Intangible assets consist of the following (in thousands):

	March 31, 2014						December 31, 2013
	Gross Carrying Amount		Accum. Amort.		Net Carrying Amount		Gross Carrying Amount		Accum. Amort.		Net Carrying Amount		Estimated Useful Life (Years)
Trademarks	$	631	$	(253)	$	378	$	631	$	(240)	$	391		10-12
Patents		517		(481)		36		517		(480)		37		13-14
Customer list		513		(43)		470		513		(30)		483		10
Other intangible assets		103		(33)		70		103		(29)		74		5-10
Total intangible assets	$	1,764	$	(810)	$	954	$	1,764	$	(779)	$	985

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Earnings per Share (EPS) (Details) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Impairment Effects on Earnings Per Share [Line Items]
Weighted-average number of common shares outstanding - basic	7,916	7,986
Potential dilution from equity grants	0	69
Weighted-average number of common shares outstanding - diluted	7,916	8,055

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Commitments and Contingencies (Details Textual) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 13, 2014 GemGroup Inc [Member]
Commitments and Contingencies [Line Items]
Business Acquisition, Potential Cash Payment		$ 22,500,000
Business Acquisitions Deposit Amount		1,000,000
License Agreements Expiration Period	2015
Royalty Expense	125,000
Long-term Purchase Commitment, Installment Amount	50,000
Long-term Purchase Commitment, Amount	$ 150,000

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Net (loss) income	$ (1,131)	$ 533
Other comprehensive loss:
Foreign currency translation adjustment	(20)	(659)
Other comprehensive loss, net of tax	(20)	(659)
Total comprehensive loss	$ (1,151)	$ (126)

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Cash, Cash Equivalents, and Marketable Securities

3 Months Ended

Mar. 31, 2014

Cash and Cash Equivalents [Abstract]

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

Note 3. Cash, Cash Equivalents, and Marketable Securities

We hold our cash, cash equivalents, and marketable securities in financial institutions in various countries throughout the world. Substantially all accounts have balances in excess of government-insured limits. The following summarizes the geographic location of our holdings (in thousands):

	March 31, 2014						December 31, 2013
	Cash and Cash Equivalents		Marketable Securities		Total		Cash and Cash Equivalents		Marketable Securities		Total
United States	$	10,484	$	-	$	10,484	$	11,052	$	-	$	11,052
France		940		5,855		6,795		344		5,724		6,068
Macau S.A.R., China		2,389		-		2,389		3,096		-		3,096
Total	$	13,813	$	5,855	$	19,668	$	14,492	$	5,724	$	20,216

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

	March 31, 2014						December 31, 2013
	Cost		Unrealized Gain/(Loss)		Fair Value		Cost		Unrealized Gain/(Loss)		Fair Value
Certificates of deposit	$	4,125	$	-	$	4,125	$	4,680	$	-	$	4,680
Bond mutual funds		1,730		-		1,730		1,044		-		1,044
Total marketable securities	$	5,855	$	-	$	5,855	$	5,724	$	-	$	5,724

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. We have determined that all of our marketable securities are Level 1 financial instruments, with asset values recorded at quoted prices in active markets for identical assets.

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Accumulated Other Comprehensive Income (Tables)

3 Months Ended

Mar. 31, 2014

Equity [Abstract]

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

Changes in accumulated other comprehensive income, net of tax, and by component for the three months ended March 31, 2014, were as follows (in thousands):

	Foreign  Currency  Translation		Unrealized  Gains on  Securities		Total
Balance at January 1, 2014	$	1,676	$	1	$	1,677
Other comprehensive loss		(20)				(20)
Balance at March 31, 2014	$	1,656	$	1	$	1,657

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Property and Equipment (Details Textual) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Property, Plant and Equipment [Line Items]
Depreciation	$ 565	$ 551

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Subsequent Event

3 Months Ended

Mar. 31, 2014

Subsequent Events [Abstract]

Subsequent Events [Text Block]

Note 13. Subsequent event

On May 7, 2014, we informed GemGroup that we elected to terminate the Binding Letter of Intent and demanded the return of our $1.0 million dollar deposit. In the same communication, we advised GemGroup that we would be willing to consider a revised transaction. GemGroup has responded positively and we are continuing our negotiations.