Gaming Partners International
Annual Report 2016

Plain-text annual report

Morningstar® Document Research℠ FORM 10-KGaming Partners International CORP - GPICFiled: March 24, 2017 (period: December 31, 2016)Annual report with a comprehensive overview of the companyThe information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The userassumes all risks for any damages or losses arising from any use of this information, except to the extent such damages or losses cannot belimited or excluded by applicable law. Past financial performance is no guarantee of future results. UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D. C. 20549 FORM 10-K(Mark One) xANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2016 ¨TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIESEXCHANGE 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 of incorporation) (I.R.S. Employer Identification No.) 3945 West Cheyenne Avenue, North Las Vegas, Nevada 89032(Address of principal executive offices) Registrant's telephone number, including area code: (702) 384-2425 Securities registered pursuant to Section 12(b) of the Act: None Securities registered pursuant to Section 12(g) of the Act: Common Stock, par value $0.01 per share Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. ¨ Yes x No Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15 (d) of the Act. ¨ Yes x No Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Sections 13 or 15(d) of the Securities Exchange Act of1934 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 filingrequirements for the past 90 days. x Yes ¨ No Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data Filerequired to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant wasrequired to submit and post such files). x Yes ¨ No Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained,to the best of the registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or anyamendment to this Form 10-K. ¨ Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.Large accelerated filer ¨ Accelerated filer ¨ Non-accelerated filer ¨ Smaller reporting company x Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). ¨ Yes x No The aggregate market value of Common Stock held by non-affiliates of the registrant as of June 30, 2016 (the last business day of the most recentlycompleted second fiscal quarter) based on the closing price as reported on the NASDAQ Global Market of $9.30 per share: $37,078,337. As of March 7, 2017, there were 7,928,594 shares of the registrant’s Common Stock, par value $0.01 per share, outstanding. Documents Incorporated by Reference: Portions of our definitive Proxy Statement relating to our 2017 annual stockholders’ meeting are incorporated herein by reference in Part III of thisAnnual Report on Form 10-K. Such Proxy Statement will be filed with the Securities and Exchange Commission no later than 120 days after conclusion ofSource: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.the registrant’s year ended December 31, 2016. Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. TABLE OF CONTENTS PART I 1Item 1.Business1Item 1A.Risk Factors7Item 1B.Unresolved Staff Comments11Item 2.Properties11Item 3.Legal Proceedings12Item 4.Mine Safety Disclosures12 PART II 13Item 5.Market for Registrant’s Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities13Item 6.Selected Financial Data13Item 7A.Quantitative and Qualitative Disclosures About Market Risk23Item 8.Financial Statements and Supplementary Data24 Report of Independent Registered Public Accounting Firm26 Consolidated Balance Sheets27 Consolidated Statements of Income28 Consolidated Statements of Comprehensive Income29 Consolidated Statements of Stockholders’ Equity30 Consolidated Statements of Cash Flows31 Notes to Consolidated Financial Statements32Item 9A.Controls and Procedures48Item 9B.Other Information49 PART III 49Item 10.Directors, Executive Officers, and Corporate Governance49Item 11.Executive Compensation49Item 12.Security Ownership of Certain Beneficial Owners and Related Stockholder Matters49Item 13.Certain Relationships and Related Transactions and Director Independence49Item 14.Principal Accounting Fees and Services49 PART IV 50Item 15.Exhibits, Financial Statement Schedules50Item 16.Form 10-K Summary50 Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. PART I Statement Regarding Forward-Looking Statements This report on Form 10-K contains forward-looking statements regarding future events or our future financial and operational performance.Forward-looking statements include statements regarding markets for our products; trends in net sales, gross profits and estimated expense levels; liquidityand anticipated cash needs and availability; and any statement that contains the words “anticipate,” “believe,” “plan,” “forecast,” “foresee,” “estimate,”“project,” “expect,” “seek,” “target,” “intend,” “goal” and other similar expressions. The forward-looking statements included in this report reflect ourcurrent expectations and beliefs, and we do not undertake publicly to update or revise these statements, even if experience or future changes make it clearthat any projected results expressed in this annual report or future quarterly reports to stockholders, press releases or company statements will not berealized. In addition, the inclusion of any statement in this report does not constitute an admission by us that the events or circumstances described in suchstatement are material. Furthermore, we wish to caution and advise readers that these statements are based on assumptions that may not materialize andmay involve risks and uncertainties, many of which are beyond our control, that could cause actual events or performance to differ materially from thosecontained or implied in these forward-looking statements. These risks and uncertainties include the business and economic risks described in Item 1A. RiskFactors. Unless otherwise indicated or unless the context requires otherwise, all references in this document to “GPIC,” “our company,” “we,” “us,” “our,”“the Company,” and similar names refer to Gaming Partners International Corporation and its subsidiaries. Item 1. Business Company Overview Gaming Partners International Corporation, a Nevada corporation, is headquartered in North Las Vegas, Nevada. The Company was formed in 2002through a reverse merger between Paul-Son Gaming and Bourgogne et Grasset. GPIC has three operating subsidiaries: Gaming Partners InternationalUSA, Inc. (GPI USA) (including GPI Mexicana S.A. de C.V. (GPI Mexicana), our maquiladora manufacturing operation in Mexico, and GPI USA Blue Springs,our manufacturing facility in Missouri); Gaming Partners International SAS (GPI SAS); and Gaming Partners International Asia Limited (GPI Asia). Oursubsidiaries 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 productsmanufactured in either San Luis Rio Colorado, Mexico, or Blue Springs, Missouri. The remainder is either manufactured in France or purchasedfrom United States vendors. We warehouse inventory in San Luis, Arizona; Blue Springs, Missouri; and North Las Vegas, Nevada. We have salesoffices in North Las Vegas, Nevada; Atlantic City, New Jersey; Gulfport, Mississippi; and Blue Springs, Missouri. •GPI SAS sells primarily in Europe and Africa out of its office in Beaune, France. GPI SAS predominantly sells casino currencies, including bothAmerican-style, known as chips, and European-style, known as plaques and jetons. Most of the products sold by GPI SAS are manufactured inFrance, with the remainder manufactured in Mexico. •GPI Asia, located in Macau S.A.R., China, distributes our full product line in the Asia-Pacific region. GPI Asia also sells table layouts that itmanufactures in Macau S.A.R. We are one of the gaming industry’s leading manufacturers and suppliers of casino table game equipment. We custom manufacture and supplycasino currency, with multiple security and design options, playing cards, table layouts, gaming furniture, table accessories, dice, and roulette wheels. Wealso provide multiple radio frequency identification (RFID) technologies including low- and high-frequency RFID casino currency, RFID solutions for casinocurrency (consisting of low- and high-frequency RFID casino currency readers, antennas, casino currency authentication software, casino currency inventorysoftware applications, and software maintenance services). Our products and services are used with casino table games such as blackjack, poker, baccarat,craps, and roulette. Our products fall into two categories – non-consumable and consumable. Non-consumable products consist of casino currencies, gamingfurniture, and RFID solutions. These products typically have a useful life of several years or longer. Sales of non-consumables are typically driven by casinoopenings, expansions, and re-brandings, as well as replacement in the normal course of business. Consumable products consist of playing cards, table layouts,dice, and table accessories. These products each have a useful life that ranges from several hours for playing cards and dice to several months for layouts.Casinos tend to buy these products annually if not more frequently. 1 Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. The majority of our products are specifically designed and produced to meet our customers’ requirements, whether they are related to use, branding,aesthetic appeal, security, or anti-counterfeiting features. We believe our ability to produce products with a variety of styles and features, in combination withyears of reliable delivery, enhance our competitive position. Our strategy is to be the exclusive supplier of table game products for every new casino.Through this strategy, revenues are generated both from the initial sale and replenishment of consumable products. Product Segments We operate in one operating segment – casino table game products. See Item 8. Financial Statements and Supplementary Data – Notes toConsolidated Financial Statements – Note 12. Geographic and Product Line Information, for information concerning our product lines. Products The following describes our products by product line and the table shows sales (dollars in thousands) for the years ended December 31: 2016 2015 Year to Year Change Casino currency without RFID $15,698 19.1% $17,762 22.8% $(2,064) (11.6)%Casino currency with RFID 16,123 19.6% 12,852 16.4% 3,271 25.5%Total casino currency 31,821 38.7% 30,614 39.2% 1,207 3.9% Playing cards 26,708 32.5% 24,171 30.9% 2,537 10.5%Table accessories and other products 6,639 8.1% 7,243 9.3% (604) (8.3)%Table layouts 5,259 6.4% 6,199 7.9% (940) (15.2)%RFID solutions 3,000 3.7% 2,186 2.8% 814 37.2%Dice 2,859 3.5% 2,685 3.4% 174 6.5%Gaming furniture 2,645 3.2% 1,990 2.5% 655 32.9%Shipping 3,208 3.9% 3,150 4.0% 58 1.8%Total $82,139 100.0% $78,238 100.0% $3,901 5.0% Casino Currency Casinos use chips, plaques, and jetons as currency at table games. Our broad range of currency products enables us to meet our customers’preferences and specifications, including branding, aesthetic, security, and anti-counterfeiting features. Because casino currency, like real currency, is subjectto counterfeiting, we incorporate a variety of custom security and anti-counterfeit features, such as ultra-violet (UV) pigments, UV inks, four-color process UVmarkings, infrared pigments, DNA type taggants, gold lace materials, alpha dots, customized rings, number serializations, security films, holograms, andmicro-text. Manufacturing techniques used to thwart counterfeiting include creation of intricate multi-shot molds and complex currency designs to increasereplication difficulty. Our most sophisticated anti-counterfeiting feature is an RFID device, based on a microchip that can be embedded in our casinocurrency making it counterfeit resistant when combined with our chip inventory, validation and tracking system (CIS). Typically, a casino will order all of its casino currency, including replacement currency, from a single supplier. Accordingly, we strive to become theoriginal casino currency supplier to a casino upon its opening, thereby enhancing our opportunity to receive additional sales when the casino placesreplacement orders or grows. A new casino order will typically include at least five to seven distinct currency denominations, colors, and styles, ranging indenominations from $0.50 to in excess of $1 million. Our selling price depends on customization, quantities, design, and security features. Casino currencycan be divided into two basic styles: American-style, known as chips, and European-style, known as plaques and jetons. We hold the leading worldwidemarket share in casino currency. American style Casino Currency. American-style casino currency, commonly known as chips, is used worldwide. There are currently four mainmanufacturing technologies used to produce this type of currency: injection molding, thermo-compression molding, laser cut-thermo-compression, andsublimation. We produce casino currency using all four of these methods. We sell American-style casino currency under the Paulson®, Bud Jones®, BlueChip® (BC®), Dolphin® and Bourgogne et Grasset® (BG®) brand names. 2 Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. •Injection-molded Currency. Our BG®, Dolphin® and Bud Jones® Plastic injection-molded casino currencies are made with several injection-molded colors, typically with a central metal piece for added weight, and printed decals. There are several standard diameters and a wide rangeof design and color combinations. Various security features are used to make the currencies counterfeit resistant, including using various UV, 3-in-1 UV and infra-red pigments, and other ELP pigments, specialty inks, security taggants, holograms, 4C-UV, security film, serialization,Datatrace, DNA security powders (that can be read with specialized equipment), electromagnetic (EM) detection and RFID technology. Underour BG® brand, our Premium Chip allows for the design and full customization of the chip mold. Our new BG® V-Series chip line wasdeveloped using an exclusive and highly durable injection material formula. The V-Series utilizes a proprietary and interchangeable moldsystem that offers customers a broader range of mold designs and the option to select between two decal sizes. All V-Series chips come standardwith ChipShield, an anti-fungal agent that keeps chips cleaner. All four color shot V-Series chips come standard with an exclusive state-of-the-art hidden infra-red security feature. •Thermo-compression Molded Currency. Our Paulson® and Blue Chip® (BC®) thermo-compression molded casino currencies are manufacturedusing a proprietary formulation. Printed decals or “inlays” are incorporated in the product during the compression steps. Customized designs,security, and identifying features can be incorporated into the currencies. These casino currencies have a unique feel when stacked and arecommonly referred to as “clay chips.” Various security features are used to make this currency counterfeit resistant, including UV and infra-redpigments, UV and 4C-UV inks, alphadots, custom molds, serialization, EM detection and RFID technology. Our Paulson® Premium Chip has anouter décor ring made from the same materials used in our European-style plaques and jetons. The addition of the décor ring gives customers theoption of adding additional security features. •Laser CutThermo-compression Currency. Our BG® J3 jeton is a laser cut, thermo-compression casino currency that features intricate edge insertdesigns, two decal size options and the most advanced technology in security features. The J3 is referred to as a hybrid chip as it combinesEuropean-style plaque and jeton materials and aesthetic features with the feel and handling properties of American-style casino currency.Security features such as RFID technology, EM detection, microdots, gold lace, serialization, 4C-UV, UV Electro Luminescent and infra-redpigments, holograms and security film can be added to make the currency more counterfeit resistant. •Sublimation Currency. Sublimation currency, manufactured under the BG® brand, is made from an injection-molded white disc. Currencydesigns are transferred to the disc using a technology called “pad printing.” This technology permits simultaneous printing of the face and theedge of the chip. We refer to this casino currency style as “Full Face.” The security feature available is infra-red pigments. European-style Casino Currency Plaques and jetons are European-style casino currency. Plaques can be rectangular, square, oval, or custom-shapedand are available in various sizes. Jetons are circular with multiple diameters. Plaques and jetons are made of laminated cellulose acetate with a large range ofcolors, shapes, security, and anti-counterfeit components such as UV pigment, number serialization, laser pigment, gold lace material, EM detection, andRFID technology. We offer a number of standard designs as well as highly customized designs. GPI SAS created its original product line in 1925 and hassince held the leading position in this market since that time. RFID Casino Currency Since 1996, we have been at the forefront of applying RFID technology to casino currency. Our RFID products include RFIDembedded currency and readers and antennas for the cage, gaming tables, and chip vaults. All of these RFID products can be integrated with our CIS softwareto provide authentication and inventory management across multiple locations within a casino. RFID enables quick and accurate accounting and verificationof casino currency, either one at a time or in larger quantities, whether in stacks, racks, chip trays, or cabinets. When integrated with CIS, casino managementcan access, in real-time, a number of custom reports. Use of RFID in gaming started with our low-frequency (125 KHz) devices used primarily for security. In 2006, we developed and introduced a faster,high-frequency (13.56 MHz) line of RFID products which offered a higher level of security and had much faster reading speeds, allowing tracking of currencymovements within a casino. In 2015, after three years of research and development, we introduced SMART, a proprietary, high performance RFIDtechnology. Using a new generation of RFID tags and antennas, SMART operates at even faster chip reading speeds. The SMART reader generates less heatand requires a smaller footprint. RFID Solutions RFID Solutions are customized applications running on CIS which integrate into a casino’s system to authenticate and track casinocurrency. As part of the service, we also provide associated hardware support and maintenance services. 3 Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Playing Cards We manufacture and sell two brands (Paulson® and Gemaco®) of paper casino playing cards in single, multi-deck, and pre-shuffled packages. Inaddition, we offer plastic cards under our Gemaco® brand. Based on casino controls and practices, playing cards are typically replaced at least every 24 hours,excluding plastic cards which are used for longer periods. A casino typically enters into a one- or two-year purchase commitment with a supplier to supply itsplaying cards at regular intervals, generally monthly or quarterly. Our playing cards are compatible with all types of playing card shufflers. Table Layouts All live gaming tables are covered with a layout printed with artwork particular to each specific game and casino preference. To give our customersmaximum design flexibility, we have developed an extensive range of layouts using wool, polyester, and our proprietary Paulson® FX material. Printingprocesses include screen printing, custom hand painting, and full graphic sublimation. All graphic designs are developed in house by our art department. Dice We manufacture and sell various brands of dice. We offer a variety of options, including size, finish type, customer logo, color, serialization, andsecurity features. In a busy casino, a stick of dice (two and one-half pair) does not generally remain in play for more than a day. Gaming Furniture We sell a complete line of table gaming furniture, including tables, bases, and pit podiums. Our hand-crafted gaming furniture is custom built basedon a casino’s designs and specifications. Our tables can be designed to incorporate all of our accessories and RFID systems as wll as all third-party products,such as playing card shufflers, playing card readers, monitors, and bill validators. Table Gaming furniture is typically sold in combination with table layoutsand table accessories. Table Accessories and Other Products We offer a full line of table game accessories, including table displays, roulette reader boards, foot rails, chip trays, drop boxes, shoes, cut cards, dicesticks, lammers, markers and buttons., We manufacture many of these products and have aligned with a number of third-party vendors, such as TECHART, toprovide those products we don’t manufacture. We are a licensed manufacturer of roulette wheels and sell them worldwide. Backlog At December 31, 2016, our backlog of signed orders to be delivered during 2017 was $17.4 million, consisting of $9.0 million for GPI USA, $8.1million for GPI Asia, and $0.3 million for GPI SAS. At December 31, 2015, our backlog of signed orders for 2015 was $9.0 million, consisting of $6.4 millionfor GPI USA, $2.2 million for GPI Asia, and $0.4 million for GPI SAS. Sales, Advertising, and Promotion We maintain a global sales network. In the Americas, we primarily sell through our U.S.-based sales force. In Europe and Africa, we primarily sellthrough our Beaune, France-based sales force. In the Asia-Pacific region, we distribute products through our Macau S.A.R., China-based sales force. In a fewcases, when direct selling was not feasible because of local conditions, we have entered into agreements with carefully selected local sales agents ordistributors. However, we always maintain direct contact with the customer to ensure that our brand integrity is not compromised. We have product design teams in the United States, Mexico, France, and Asia to support our sales staff to develop artwork for custom products andto assist our manufacturing operations. We actively promote our product lines and service capabilities, and product quality in a variety of traditional and emerging media. We placeadvertising in trade publications, support frequent editorial inquiries, and participate in major casino industry trade shows, including the Global GamingExpo (G2E) events in Las Vegas, Nevada, and Macau S.A.R., China, the International Casino Exhibition (ICE) show in London, England, and the NationalIndian Gaming Association (NIGA) show held in various cities in the United States. We also promote our products through periodic direct-to-customer printand e-mail campaigns and maintain a website dedicated to providing our customers with an easy-to-use product information resource. 4 Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. We also market casino-specific themed products in certain gaming jurisdictions, including casino currency, table layouts, playing cards, and dice.These themed products are used by our customers to promote special events, including sporting events, conventions, holidays, casino anniversaries, andpremier entertainment events. Competition We compete in all our product lines against a number of table game equipment suppliers. Competitive advantages include our reputation,manufacturing capability, sales staff experience, distribution channels, regulatory and jurisdictional licenses, financial strength, and being one of the fewcompanies to provide a complete line of casino table game products.. Casino Currency. Major competitors in casino currency are ICON Poker, Inc., based in the United States; Abbiati Casino Equipment Snc., based inItaly; and Matsui Gaming Machine Co., Ltd., based in Japan. Competitive advantages are region specific products, reputation, quality, widespreadjurisdictional licensing, emphasis on and the range of security features and configurable custom design options, understanding of players’ and dealers’preferences, and value. RFID Solutions. Primary competitive advantages for RFID solutions sales are experience with tracking of the complete supply chain of our RFIDcurrency, exclusive licenses and patents, CIS software, product quality, security, service, and value. Playing Cards. Major competitors in playing cards are The United States Playing Card Company based in the United States, and the Angel PlayingCards Co., Ltd, based in Japan. Competitive advantages are card characteristics such as finish, weight of paper, and snap memory, as well as manufacturingcapacity, multiple brand, jurisdictional licensing, security, quality control, delivery reliability and value. Table Layouts. Primary competitors in table layouts are Midwest Game Supply Co., and Rye Park Gaming LLC, both based in the United States, aswell as TCS/John Huxley based in the United Kingdom, and Matsui and Colorway, based in Asia. In addition, there are numerous small, regional competitors.Competitive advantages are fabric quality and durability, quick delivery, printing processes, and value. Gaming Furniture. Principal competitors in gaming furniture are USA Gaming Supply Inc., Avalon Gaming Inc., and MSC Gaming Inc., all based inthe United States, as well as TCS/John Huxley, Abbiati Casino Equipment, and regional wood shops. Primary competitive advantages are the ability todesign and produce a wide range of gaming furniture, short production lead times, craftsmanship, jurisdictional approvals, and value. Table Accessories and Other Products. Principal competitors in table accessories and other products are small local distributors. Key competitiveadvantages are the ability to be a single-source supplier of all table game products., service and product quality. Dice. Our primary competitor in dice is Midwest Game Supply Co. Primary competitive advantages are product quality, manufacturing capacity,multiple brands, product options, service, and value. Materials and Supplies Where possible, we diversify our supplier base to avoid a disruption of supply. Most of our raw materials are staple goods such as plastic, wood, felt,and synthetic fabric, which are readily available from several suppliers. We believe the availability of these materials is adequate to meet our ongoingmanufacturing needs. However, some key components or raw materials, such as RFID tags or paper, have unique suppliers. For these critical supplies, weinventory, when possible, additional quantities. Manufacturing Most of our products are produced based on discrete orders. We manufacture little to inventory. Our manufacturing facilities are in Beaune, France;San Luis Rio Colorado, Mexico; Blue Springs, Missouri; and Macau S.A.R., China. In France we produce our Bourgogne et Grasset® American-style casinochips, as well as plaques and jetons. In Mexico, we produce Paulson®, Bud Jones®, Dolphin®,and Bourgogne et Grasset® American-style casino chips, aswell as table layouts, gaming furniture, table accessories, and dice. In Blue Springs, we produce Paulson® and Gemaco® playing cards, and table layouts. InMacau S.A.R., we manufacture table layouts. We have the facilities, equipment, and personnel necessary to meet expected customer demand. 5 Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Research and Development We continually invest in developing or acquiring new or improved products. In 2015, we introduced a new casino currency product line, the V-Series, an American-style injection molded chip made with a proprietary mold system using a new injection material formula. We also launched SMARTRFID, the latest generation of RFID technology, built on the ISO 18000-3M3 standard. The introduction of SMART RFID was accompanied by a new suite ofantennas and peripherals for the cage, pit, vault and table as well as the release of a major CIS software upgrade For information regarding the amounts spentduring 2016 and 2015 on research and development activities, see Item 7. Management’s Discussion and Analysis of Financial Condition and Results ofOperations. Intellectual Property We own numerous United States and internationally protected patents, trademarks and logos. Our trademarks, logos, and patent rights are valuableto our operations and are an important part of our marketing strategy. Our policy is to actively pursue and maintain registration of our patents, trade secrets,trademarks and logos where needed, and to vigorously defend against any infringement or dilution. Environmental Matters Our operations are in compliance with international, federal, state, and local environmental laws and regulations. Liability for environmentalremediation is accrued if considered probable and costs can be reasonably estimated. Employees At December 31, 2016, we employed 730 full time employees, consisting of 341 employees in Mexico, 250 in the United States, 115 in France, and24 in Macau S.A.R. None of our employees are covered by collective bargaining agreements and we believe that our relations with our employees are good. Regulation and Licensing The gaming operations of each of our subsidiaries, as well as the operations of casinos, are subject to extensive regulation by over 200 state, federal,tribal, and international agencies, with the majority of oversight by individual state gaming control boards and tribal gaming agencies. We have never beendenied a gaming-related license. While the regulatory requirements vary from jurisdiction to jurisdiction, most require licenses, permits, findings of suitability, documentation ofqualification including evidence of financial stability and/or other required approvals for companies who manufacture and distribute gaming equipment, aswell as the individual suitability of officers, directors, major stockholders, and key employees. Under the various gaming regulations, key personnelgenerally include the current and/or proposed corporate officers and directors of a corporation and its subsidiaries. Laws of the various gaming regulatoryagencies are generally intended to protect the public and ensure that gaming-related activity is conducted honestly and competitively and is free ofcorruption. Certain regulators not only govern the activities within their jurisdiction, but also oversee activities that occur in other jurisdictions to ensure thatwe comply with local standards on a worldwide basis. As a Nevada corporation, state regulatory authorities require us to maintain, at a minimum, Nevadagaming standards for all operations worldwide. Violations of laws in one jurisdiction could result in disciplinary action in other jurisdictions. A moredetailed description of the regulations to which we are subject is provided in Exhibit 99.01 of this annual report on Form 10-K. In August 2012, the Securities and Exchange Commission (SEC) adopted the conflict mineral rules requiring issuers that manufacture products thatcontain certain minerals and metals, known as conflict minerals, to perform due diligence and to report annually to the SEC whether such minerals originatedin the Democratic Republic of Congo or an adjoining country. The implementation of these new requirements could adversely affect the sourcing,availability, and pricing of minerals that we use in the manufacture of our products. In addition, we have incurred and will incur additional costs to complywith these disclosure requirements, including costs related to determining the source of any of the relevant minerals used in our products. A report is dueannually on May 31 for the previous calendar year. Dependence on One or a Few Major Customers At December 31, 2016, one casino customer accounted for 25% of our accounts receivable balance. At December 31, 2015, a different casinocustomer accounted for 33% of our accounts receivable balance. Because of large orders for casino openings or expansions, it is not unusual to have temporary concentrations of our accounts receivable balancerelated to one or a few customers. 6 Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Financial Information about Geographic Areas See Item 8. Financial Statements and Supplementary Data – Notes to Consolidated Financial Statements – Note 12. Geographic and Product LineInformation, for financial information by geographic area. Available Information Our principal executive office is located at 3945 West Cheyenne Avenue, North Las Vegas, Nevada 89032. Our telephone number is (702) 384-2425. Our website is www.gpigaming.com. Our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and, if applicable,any amendments to those reports, are available on our website free of charge as soon as reasonably practicable after we electronically file, or furnish, them tothe SEC. The information found on our website is not incorporated or part of this annual report on Form 10-K or any other report we file or furnish to the SEC.Copies are also available free of charge by (i) telephonic request to our Investor Relations Department at (702) 384-2425, or (ii) written request to GamingPartners International Corporation, Attn: Investor Relations, 3945 West Cheyenne Avenue, Suite 208, North Las Vegas, Nevada 89032. Item 1A. Risk Factors An investment in our common stock involves a high degree of risk. You should carefully consider the factors described below, in addition to thosediscussed elsewhere in this report, in analyzing an investment in our common stock. If any of the events described below occurs, our business, financialcondition, and results of operations would likely suffer, the trading price of our common stock could fall, and you could lose all or part of the money youpaid for our common stock. The risk factors described below are not the only ones we face. Risks and uncertainties not known to us currently, or that mayappear immaterial, also may have a material adverse effect on our business, financial condition, and results of operations. In addition, the following risk factors and uncertainties could cause our actual results to differ materially from those projected in our forward-looking statements, whether made in this annual report or future quarterly reports to stockholders, press releases, or oral statements, whether in presentations,responses to questions, or otherwise. We urge you to carefully review the following discussion of the specific risks and uncertainties that affect our business,any of which could have an adverse effect on our financial condition and results of operations. These include, but are not limited to, the following: Demand for our products could be adversely affected by: •a significant shift in player preferences away from live table games to electronic, mobile, or online gaming, including the further legalization,expansion, and popularity of electronic, mobile, and online gaming; •slow growth rate of new and existing land-based casinos and markets; •delays of scheduled openings of newly constructed or planned land-based casinos; •a decline in the rate of replacement of existing products; •a decline in the public acceptance of gaming; •a decline in the popularity of the types of games with which our products are used; •a decline in the perceived usefulness and necessity of counterfeit security features in our products; •an increase in the popularity of competitors’ products; •a shift in customer preference between American-style casino chips and European-style plaques and jetons; and •an increase in the number of competitors in the casino currency market or an inability to compete effectively with existing or new competitors. 7 Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Our success in the gaming industry depends in part on our ability to develop and introduce innovative products and could be adversely affectedby: •any defects in our RFID casino currencies or related products, or a failure of such products containing new innovative technology to perform ascontemplated, which could result in the rejection or return of our products, damage to our reputation, lost revenues, increased service costs,warranty claims, and litigation; •a lack of success in integrating our RFID technology with other technology for table game products, such as player tracking systems; •the inability of us or another company to develop, sell, and support RFID-related applications requested by our customers, thereby making ourRFID casino currencies less attractive; •any delay by us in introducing new products on schedule; •the development of competing new technologies, making our technology obsolete or undesirable; and •a lack of success in developing or adequately servicing new products, in particular our products with security features. Our intellectual property rights are subject to risks, including: •approval of competitors’ patent applications that may restrict our ability to compete effectively; •competitors’ infringement upon our existing trademarks, patents, trade secrets, and copyrights; •expiration of our patents and licenses; •inability to obtain, maintain, and defend patents, trademarks, copyrights, and trade secrets to protect our products and technology; •costs in defending our intellectual property rights, including indirect costs related to the diversion of management’s time and attention awayfrom the operation of our business; •successful challenge of our patents regarding our RFID embedded casino currencies; and •ineffective or lack of enforcement of patents by our licensors. Our business is vulnerable to changing economic conditions, including: •uncertainties related to changing economic conditions, including those that affect the health of the gaming industry; •declines in discretionary spending on entertainment activities, including gaming, for reasons beyond our control such as continued negativeeconomic conditions, travel or tourism declines, natural disasters, acts of war or terrorism, transportation disruptions and other travel limitations,or health epidemics; •consolidations within the gaming industry; •higher than anticipated manufacturing, selling, administrative, legal, and/or distribution costs; •changes in interest rates resulting in changes in the fair market value of our financial instruments or increased interest expense; •changes in interest rates causing a reduction of investment income or in the value of market-rate-sensitive instruments; •a tightening of the availability of capital so that loans to us or to our customers would only be available at cost-prohibitive terms andconditions; and •unfavorable changes in federal, state, or foreign taxation laws or application of such laws that could reduce our profitability. 8 Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. We operate in a number of tribal jurisdictions with sovereign immunity, which presents risks we generally do not encounter in United Statesjurisdictions. We also operate in many countries outside of the United States which subjects us to certain inherent risks, including: •social, political, or economic instability in international markets, particularly those where we have higher sales concentrations and growth; •tariffs, other trade barriers, and import or export licensing requirements; •fluctuations in foreign exchange rates or an inability to effectively hedge our foreign currency exposures; •expropriation, nationalization, and restrictions on repatriation of funds or assets; •additional costs of compliance with international laws or unexpected changes in regulatory requirements, including those related to post-employment benefits; •adverse changes in the creditworthiness of parties with whom we have significant receivables or forward currency exchange contracts; •difficulty protecting our intellectual property; •recessions in foreign economies; •difficulties in maintaining foreign operations, including labor regulations, staffing, and management of widespread operations; •changes in consumer tastes and trends; •acts of war or terrorism; and •U.S. government requirements for import and export. We operate in a highly regulated industry and our ability to sell our products in existing jurisdictions or expand into new jurisdictions could beadversely affected by: •changes in existing gaming laws and regulations or new interpretations of existing laws and regulations that hinder or prevent us fromcontinuing to operate in the jurisdictions where we currently do business or where we intend to do business; •unfavorable public referendums or anti-gaming legislation affecting or directed at gaming manufacturers or gaming operators; •findings of non-compliance with applicable laws or regulations which could lead to a limitation, conditioning, suspension, or revocation of anyof our gaming licenses; •delays in obtaining or maintaining licenses or approvals from regulatory agencies; •limited technological expertise by regulatory agencies causing restrictions or burdensome conditions on approvals; •unfavorable determinations or challenges of suitability by gaming regulatory authorities with respect to our company, business, principalstockholders, officers, directors, or key employees; and •excessive costs related to obtaining the necessary regulatory approvals. We are subject to risk related to litigation and claims asserted against us, including: •adverse material effects on our financial condition due to asserting or defending claims; 9 Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. •the discovery of facts with respect to legal actions pending against us, but not presently known to us; •agreements with casinos in Native American jurisdictions which may subject us to sovereign immunity risk; and •a diversion of management’s attention from our business. We have a stockholder with effective control of the Company, which means: •it can control all matters requiring stockholder approval, including the election of directors and approval of significant corporate transactions; •it can delay or prevent a change in control of the Company, even when such change in control is in the best interests of other stockholders; and •its ownership might adversely affect the market price of our common stock. Pursuing or implementing acquisitions could have a material adverse effect on our business, financial condition, and results of operations,including: •significant expenses related to due diligence efforts in connection with potential acquisitions and diversion of management’s attention awayfrom our existing business; •the issuance of potentially dilutive equity securities, significant expenditures of cash, the incurrence of debt and contingent liabilities, or anincrease in amortization expenses; and •the failure to successfully consummate an acquisition on favorable terms or at all. Any acquisition we consummate may fail to produce the revenues, earnings, or business synergies we anticipate for a variety of reasons,including: •the inability to integrate operations, financial reporting, internal controls, technologies, products, and personnel, including issues raised bynational, geographic, and cultural differences; •potential impairments in acquired assets; •a less-than-successful entry into markets or acquisition of products or technologies in which we have limited or no prior experience; •expenses associated with any unknown or potential legal liabilities; •changes in or uncertainties of application of laws or regulations; •failures to identify or uncover material risks in due diligence; •management of worldwide operations; and •the inability to exploit acquired intellectual property or the development, sale, or lease of acquired products, or unanticipated increases inmanufacturing expenses. Our business operations are subject to other risks, including: •the loss of key employees, sales personnel, and technical staff or an inability to hire a sufficient number of such persons; •limited or unique suppliers for certain key raw materials for significant products; •possibility of failure of components purchased from suppliers; •the presence of lead in older versions of Paulson® brand casino chips, which could lead to unanticipated costs; 10 Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. •increased costs due to reliance on third-party suppliers and contract manufacturers or a disruption in our manufacturing processes; •increased costs due to compliance with the conflict mineral rules adopted under the Dodd-Frank Act, including costs related to determining thesource of any of the relevant minerals and metals used in our products and any potential reputational harm if we are unable to sufficiently verifythe origins for the minerals and metals; •adverse changes in the creditworthiness of parties with whom we have receivables; •casualty, theft, or loss of our casino currencies prior to delivery to casinos or the counterfeiting of our casino currencies; •the possibility of failure of our security systems, or a breakdown in casino procedures designed to prevent the manipulation of our products, toprevent fraud, both against us and our customers, or the experience of any technical difficulties which may cause the public and/or ourcustomers to lose confidence in our products or operations and/or subject us to legal claims by our customers or to investigation by gamingauthorities; and •any failures or difficulties in maintaining our computer information systems, including as a result of cyber-attacks, breaches of our computersystems, and other security vulnerabilities, could result in disruption of operations, loss of information, litigation, and unanticipated increasesin costs. Item 1B. Unresolved Staff Comments None. Item 2. Properties Our headquarters is in a 15,000 square-foot facility that we lease in North Las Vegas, Nevada. We manufacture and store our primary products atfacilities in San Luis Rio Colorado, Mexico; San Luis, Arizona; Blue Springs, Missouri; Beaune, France; and Macau S.A.R., China. We also lease sales officesin Atlantic City, New Jersey; Gulfport, Mississippi; and Macau S.A.R. North Las Vegas, Nevada. On December 30, 2015, we sold our building (approximately 64,700 square feet) and land in Las Vegas, Nevada, to anunrelated third party for $3.95 million. This property had housed our corporate headquarters and Las Vegas sales offices, as well as a warehouse and part ofour product design services department. In early 2016, we relocated our headquarters to 3945 West Cheyenne Avenue, North Las Vegas, Nevada. We areleasing approximately 15,000 square feet for a term of seven years commencing on January 1, 2016. San Luis Rio Colorado, Mexico. We manufacture casino currencies, table accessories, table layouts, dice, and gaming furniture at three facilities inSan Luis Rio Colorado, Mexico. These facilities include 80,000 square-feet of leased facilities, and a 70,000 square-foot facility which we own. San Luis, Arizona. We warehouse inventory in an 8,000 square-foot leased facility in San Luis, Arizona, across the border from our Mexicanmanufacturing facility. Blue Springs, Missouri. We manufacture playing cards and table layouts at a facility in Blue Springs, Missouri. This facility includes 65,000 square-feet of manufacturing, office, and sales administration space. In addition, we lease 20,000 square feet of warehouse space in Independence, Missouri. Beaune, France. We manufacture casino currency and table layouts at a facility in Beaune, France. This facility includes 34,000 square-feet ofmanufacturing, office and sales administration space, which we own. In addition, we own a 15,000 square-foot administrative building. We also lease a 5,000square-foot building which houses our mold-making operations. Macau S.A.R., China. We distribute our full product line in a leased 4,000 square-foot sales office in Macau S.A.R., China. In addition, wemanufacture and warehouse table layouts in two additional leased facilities in Macau S.A.R., with a total of 6,700 square feet. Facility Capacity. With a total of approximately 322,700 square feet of manufacturing, warehouse, and administrative facilities as of December 31,2016, we believe we have sufficient production capacity to meet anticipated demand for all of our products. 11 Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Item 3. Legal Proceedings We are not a party to any material pending legal proceeding or pending proceeding. We are not aware of any pending legal proceeding to which anyof our officers, directors, or any beneficial holders of 5% or more of our voting securities are adverse to us or have a material interest adverse to us. There can be no assurance that we will prevail in any litigation. Liability for material claims are accrued when a loss is considered probable and canbe reasonably estimated. Legal costs associated with claims are expensed as incurred. See Item 8. Financial Statements and Supplementary Data – Notes toConsolidated Financial Statements – Note 11. Commitments and Contingencies, for information regarding legal proceedings and contingencies. Item 4. Mine Safety Disclosures Not applicable. 12 Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. PART II Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities Market Information Our common stock is traded on the NASDAQ Global Market under the symbol GPIC. The following table sets forth the quarterly high and low pricesfor trades of our common stock as reported on the NASDAQ Global Market during the periods indicated. All stock prices reflect a fiscal year endingDecember 31. On March 7, 2017, the closing price was $10.46 per share. Fiscal Year 2016 Fiscal Year 2015 High Low High Low First Quarter $10.33 $8.51 $12.49 $8.00 Second Quarter 9.98 8.55 13.40 9.45 Third Quarter 12.34 9.12 11.39 9.50 Fourth Quarter 11.95 10.27 10.31 8.08 Holders There were 74 holders of record of our common stock as of March 7, 2017. Dividend Policy Our Board of Directors has no plans to pay a regular dividend on our common stock, but intends to evaluate from time to time the merit of paying adividend. In December 2016 we paid a special cash dividend of $0.12 per issued and outstanding common share resulting in an aggregate dividend of$951,431. Transfer Agent Our stock transfer agent and registrar is Broadridge Corporate Issuer Solutions, P.O. Box 1342, Brentwood, NY 11717. Their telephone number is 1-877-830-4936. Purchases of Equity Securities by the Issuer While our 10b5-1 trading plan was terminated on August 12, 2013, our stock repurchase program remains in effect. As of December 31, 2016,215,590 shares remain authorized for repurchase. No common shares were repurchased during 2016, and there is no assurance that we will repurchase anyadditional shares under the repurchase program. Item 6. Selected Financial Data The selected consolidated financial data included in the following tables should be read in conjunction with Item 8. Financial Statements andSupplementary Data and Item 7.Management’s Discussion and Analysis of Financial Condition and Results of Operations. The selected consolidatedfinancial data for the years ended December 31, 2016 and 2015 have been derived from our audited consolidated financial statements included at Item 8.Financial Statements and Supplementary Data. The selected consolidated financial data for the years ended December 31, 2014, 2013, and 2012 have beenderived from our audited consolidated financial statements not included herein. 13 Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Years Ended December 31, 2016 2015 2014 2013 2012 (in thousands, except per-share amounts) STATEMENT OF INCOME DATA: Revenues $82,139 $78,238 $60,972 $56,173 $62,896 Cost of revenues 56,803 51,403 42,657 38,584 40,384 Gross profit 25,336 26,835 18,315 17,589 22,512 Selling, administrative, and research anddevelopment 17,776 16,926 16,127 16,970 15,352 Operating income 7,560 9,909 2,188 619 7,160 Other (expense) income, net (34) (173) 227 4 290 Income before income taxes 7,526 9,736 2,415 623 7,450 Income tax provision 2,343 2,805 (261) (543) 1,375 Net income $5,183 $6,931 $2,676 $1,166 $6,075 Earnings per share: Basic $0.65 $0.87 $0.34 $0.15 $0.75 Diluted $0.64 $0.86 $0.33 $0.15 $0.75 Weighted-average shares of common stockoutstanding: Basic 7,929 7,926 7,916 7,942 8,122 Diluted 8,042 8,040 8,015 8,029 8,149 BALANCE SHEET DATA: Cash and cash equivalents $10,604 $17,788 $8,969 $14,492 $14,038 Marketable securities - 3,503 3,597 5,724 13,546 Working capital 24,351 31,129 16,195 32,069 31,348 Property and equipment, net 24,310 14,102 15,087 10,996 11,190 Total assets 79,999 77,244 68,394 55,449 63,282 Current liabilities 14,741 15,201 19,794 6,106 14,487 Long-term debt 6,649 8,002 - - - Total stockholders' equity (1) 57,533 53,788 48,265 47,473 46,621 (1)No cash dividends were paid in 2015, 2014 or 2013. Cash dividends of $951,000 and $1,478,000, were paid in 2016 and 2012, respectively 14 Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Item 7. 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 for the year endedDecember 31, 2016. When reviewing this material you should refer to the additional detailed information in our consolidated financial statements and theaccompanying notes at Item 8. Financial Statements and Supplementary Data. Except for historical information contained herein, statements in the followingdiscussion may be forward-looking. Such forward-looking statements involve known and unknown risks and uncertainties and other factors that could causeactual results to differ significantly from those expressed. We discuss such risks, uncertainties and other factors throughout this report and specifically underItem 1A. Risk Factors. For an overview of our business and information on our products, as well as other general information, see Item 1. “Business.” Historically, we have experienced significant fluctuations in quarterly results primarily due to large, discrete currency orders as a result of casinoopenings, casino expansions, or large replacement orders. Our backlog, which reflects signed orders to be delivered over the following twelve months, was as follows at December 31, 2016 and December 31,2015: GPI USA GPI Asia GPI SAS TotalDecember 31, 2016 $9.0 million $8.1 million $0.3 million $17.4 millionDecember 31, 2015 $6.4 million $2.2 million $0.4 million $9.0 million Outlook In the fourth quarter of 2016 we shipped our first order of Dolphin® chips. With the acquisition of assets from Dolphin Products Limited (Dolphin),we have strengthened our position in the growing Asia market. While there are a number of casinos scheduled to open in 2017 and 2018 in Macau,continuing uncertainty arising from regulators’ decisions on the timing of openings and the number of tables allotted to each new casino will impact both theamount of revenue we recognize and the timing of revenue recognition. In the Americas, we have continued to experience steady growth in our playing cards product line. Nevertheless, operating challenges arising fromthe rapid growth of our business and our expansion at the Blue Springs, Missouri, facility has affected our profitability for 2016 and may affect it in 2017. We will continue to evaluate other potential strategic acquisitions and partnerships to grow our business; however, no assurance can be given thatthese efforts will result in completed transactions or that any completed transactions will be successful. Additionally, we will pursue growth internally bycontinuing our focus on market-driven research and development of new products and product enhancements. Financial and Operational Highlights For the fourth quarter of 2016, our revenues were $23.1 million, a decrease of $0.4 million, or 1.5%, compared to revenues of $23.5 million in thefourth quarter of 2015. For the fourth quarter of 2016, our net income was $0.7 million, a decrease of $2.7 million, or 78.5%, compared to net income of $3.4million in the fourth quarter of 2015. For the year ended December 31, 2016, our revenues were $82.1 million, an increase of $3.9 million, or 5.0%, compared to revenues of $78.2 millionin 2015. Our net income for 2016 was $5.2 million, a decrease of $1.7 million, or 25.2%, compared to net income of $6.9 million for 2015. The 2016 netincome includes a $0.4 million impairment loss on intangible assets while the 2015 net income includes a gain of $1.3 million on the sale of a building andland we owned in Las Vegas, Nevada. GPI SAS uses the euro as its functional currency. At December 31, 2016 and 2015, the U.S. dollar to euro exchange rates were 1.05 and 1.09,respectively, which represents a 3.5% stronger dollar compared to the euro. The average exchange rates for the years ended December 31, 2016 and 2015 wasstable at $1.11. 15 Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Our Mexican manufacturing plant uses the U.S. dollar as its functional currency. At December 31, 2016 and 2015, the Mexican peso to U.S. dollarexchange rates were 20.75 and 17.21, respectively, which represents a 20.6% stronger dollar compared to the peso. The average exchange rates for the yearsended December 31, 2016 and 2015 were 18.72 and 15.86 pesos to the U.S. dollar, respectively, which represents a 18.0% stronger dollar compared to theMexican peso. Because many of our expenses are in pesos, the strengthening of the dollar generated a positive impact on our gross margin of $0.9 million. GPI Asia uses the U.S. dollar as its functional currency. At December 31, 2016 and December 31, 2015, the Macau pataca to U.S. dollar exchangerates were 8.20 patacas and 8.19 patacas, respectively, which represents a 0.2% stronger dollar compared to the Macau pataca. The Macau pataca to U.S.dollar average exchange rates for the years ended December 31, 2016 and 2015 were 8.17 patacas and 8.15 patacas, respectively, which represents a 0.3%stronger dollar compared to the Macau pataca. Results of Operations The following table summarizes selected items from our consolidated statements of income (dollars in thousands) and as a percentage of revenues forthe years ended December 31: 2016 2015 Year to Year Change Revenues $82,139 100.0% $78,238 100.0% $3,901 5.0%Cost of revenues 56,803 69.2% 51,403 65.7% 5,400 10.5%Gross profit 25,336 30.8% 26,835 34.3% (1,499) (5.6)%Selling, administrative, and research anddevelopment 17,776 21.6% 16,926 21.6% 850 5.0%Operating income 7,560 9.2% 9,909 12.7% (2,349) (23.7)%Other (expense) income, net (34) (0.0)% (173) (0.2)% 139 (80.3)%Income before income taxes 7,526 9.3% 9,736 12.5% (2,210) (22.7)%Income tax provision (benefit) 2,343 2.9% 2,805 3.6% (462) 16.5%Net income $5,183 6.3% $6,931 8.9% $(1,748) (25.2)% The following table presents certain data by geographic location (dollars in thousands) and as a percentage of revenues for the years endedDecember 31: 2016 2015 Year to Year Change Revenues The Americas $56,247 68.5% $53,211 68.0% $3,036 5.7%Asia-Pacific 21,353 26.0% 21,341 27.3% 12 0.1%Europe and Africa 4,539 5.5% 3,686 4.7% 853 23.1%Total $82,139 100.0% $78,238 100.0% $3,901 5.0% 16 Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. The following table details our revenues by product line (dollars in thousands) and as a percentage of revenues for the years ended December 31: 2016 2015 Year to Year Change Casino currency without RFID $15,698 19.1% $17,762 22.8% $(2,064) (11.6)%Casino currency with RFID 16,123 19.6% 12,852 16.4% 3,271 25.5%Total casino currency 31,821 38.7% 30,614 39.2% 1,207 3.9% Playing cards 26,708 32.5% 24,171 30.9% 2,537 10.5%Table accessories and other products 6,639 8.1% 7,243 9.3% (604) (8.3)%Table layouts 5,259 6.4% 6,199 7.9% (940) (15.2)%RFID solutions 3,000 3.7% 2,186 2.8% 814 37.2%Dice 2,859 3.5% 2,685 3.4% 174 6.5%Gaming furniture 2,645 3.2% 1,990 2.5% 655 32.9%Shipping 3,208 3.9% 3,150 4.0% 58 1.8%Total $82,139 100.0% $78,238 100.0% $3,901 5.0% Comparison of Operations for the Years Ended December 31, 2016 and 2015 Revenues. For the year ended December 31, 2016, our revenues were $82.1 million, an increase of $3.9 million, or 5.0%, compared to revenues of$78.2 million in 2015. This increase in revenues is primarily due to an increase in the casino currency, the playing cards and the RFID solutions productlines, offset by a decrease in the table layouts product lines. Cost of Revenues. For the year ended December 31, 2016, our cost of revenues was $56.8 million, an increase of $5.4 million, or 10.5%, compared tocost of revenues of $51.4 million for 2015. As a percentage of revenues, our cost of revenues increased to 69.2% in 2016 compared to 65.7% in 2015. Theincreased cost of revenues was driven by the same factors described under Revenues above and Gross Profit below. Gross Profit. For the year ended December 31, 2016, gross profit was $25.3 million, a decrease of $1.5 million, or 5.6%, compared to gross profit of$26.8 million for 2015. As a percentage of revenues, our gross profit decreased to 30.8% in 2016 compared to 34.3% in 2015. This decrease in gross profitwas primarily related to operational challenges encountered on our playing cards product line arising from the rapid growth of the business. This product linewas operating at or above 100 percent capacity for much of the year due to a very successful sales effort, necessitating a major expansion of the Blue Springsplant and upgrading production processes. These changes, executed while the product line was at or above full capacity, resulted in increased costs and lowerproductivity, reducing margins. This was especially true for the fourth quarter of 2016. Additional process improvements and personnel training are stillunder way. It is possible gross profit will be negatively impacted in 2017 before it increases. The playing cards gross profit impact was offset in part by anincrease in RFID solutions sales and a stronger dollar as compared to the Mexican peso. Selling, Administrative, and Research and Development Expenses. The following table details the selling, administrative, and research anddevelopment expenses (dollars in thousands) and as a percentage of revenues for the years ended December 31: 2016 2015 Year to Year Change Marketing and sales $6,407 7.8% $6,438 8.2% $(31) (0.5)%General and administrative 10,181 12.3% 9,273 11.8% 908 9.8%Research and development 1,188 1.4% 1,215 1.6% (27) (2.2)%Total selling, administrative, and research anddevelopment $17,776 21.6% $16,926 21.6% $850 5.0% For the year ended December 31, 2016, selling, administrative, and research and development expenses were $17.8 million, an increase of$0.9 million, or 5.0%, compared to selling, administrative, and research and development expenses of $16.9 million in 2015. As a percent of revenue, selling,administrative, and research and development expenses remained stable year over year at 21.6%. 17 Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Marketing and sales expenses and research and development expenses remained relatively unchanged in the year 2016 compared to 2015. General and administrative expenses increased from 2015 to 2016 by $0.9 million. This is primarily due to an intangible asset impairment loss of$0.4 million in 2016 and a one-time gain on sale of our building and land in Las Vegas, Nevada of $1.3 million, recorded in 2015, partially offset by adecrease in compensation-related expenses of $0.7 million. Other (Expense) and Income, net. The following table details other (expense) and income items (dollars in thousands) and as a percentage ofrevenues for the years ended December 31: 2016 2015 Year to Year Change Interest income $23 0.0% $12 0.0% $11 90.3%Interest expense (242) (0.2)% (248) (0.2)% 6 2.5%Gain on foreign currency transactions 187 0.2% 38 0.0% 149 390.4%Other (expense) income, net (2) (0.0)% 25 0.0% (27) (108.0)%Other expense, net $(34) (0.0)% $(173) (0.2)% $139 (80.3)% For the year ended December 31, 2016, other expense decreased by $0.1 million compared to the prior year. This is primarily due to an increase ingain on foreign currency transactions. Income Taxes. During the year ended December 31, 2016, our effective tax rate was 31.1%, compared to an effective tax rate of 28.8% for the yearended December 31, 2015. Our effective tax rate for the year ended December 31, 2016 was favorably affected by the foreign rate differential on the incomefrom our Macau subsidiary, GPI Asia, and the benefit from research and low wage tax credits from our French subsidiary, GPI SAS, partially offset by ourSubpart F income adjustment. Our effective tax rate for the year ended December 31, 2015 differed from the statutory rate primarily because of the utilizationof our foreign tax credit carryforwards, combined with the foreign rate differential on the income from our Macau subsidiary, GPI Asia, and the benefit fromresearch and low wage tax credits from our French subsidiary, GPI SAS; partially offset by the tax impact of a $7.3 million deemed dividend from GPI Asia in2015 and our Subpart F income adjustment. Pre-tax income (loss) by taxing jurisdictions for the years ended December 31 (in thousands) was as follows: 2016 2015 Macau S.A.R., China $4,672 $4,819 United States 2,994 4,669 Mexico 337 280 France (477) (32)Total pre-tax income $7,526 $9,736 Our corporate tax rate is calculated on a consolidated basis. Included in the United States numbers are the costs of GPIC, which include such items asregulatory fees, board of director expenses, investor relations expenses, auditing and review fees, and corporate legal expenses. We do not allocate these coststo our subsidiaries. These expenses totaled approximately $1.0 million for 2016, and approximately $1.5 million for 2015. We account for uncertain tax positions in accordance with applicable accounting guidance. In 2015, the French Tax Administration started anexamination of GPI SAS for the tax years 2013 and 2012 that is on-going. Impact of Inflation. To date, inflation has not had a material effect on our operations. Liquidity and Capital Resources Sources of Liquidity and Capital Resources. Historically, our primary source of liquidity and capital has been cash from operations. On June 26,2015, we entered into a Credit Agreement with Nevada State Bank for a combined $15.0 million credit facility, consisting of a $10.0 million seven-year termloan and a $5.0 million five-year revolving loan. We borrowed the full amount under the term loan which will mature on June 26, 2022, and have not drawnany funds under the revolving loan. For additional information, see Item 8. Financial Statements and Supplementary Data – Notes to Consolidated FinancialStatements – Note 10. Debt. 18 Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Other potential sources of capital include, but are not limited to, additional bank credit facilities and the sale of stock. We believe we have theresources to satisfy our operating needs for working capital, capital expenditures, purchases of common stock under our stock repurchase program, litigation,dividends or acquisitions for our operations for a minimum of the next twelve months. At December 31, 2016, we had $10.6 million in cash and cash equivalents. Of this amount, $4.1 million is held by GPI Asia, $3.3 million is held byGPI SAS, and $3.2 million is held by GPI USA. Of those amounts held in France by GPI SAS and in Mexico by GPI Mexicana, we would be subject totaxation in the United States if we were to repatriate those amounts, although foreign tax credits may be available to offset such taxes. All of the amountscurrently held in Asia by GPI Asia could be repatriated tax free because US Federal Income Taxes have already been paid on these funds. Except for the $7.7million of prior years’ deemed dividends, we continue to assert that earnings from GPI Asia will be permanently reinvested. We may repatriate amounts fromGPI SAS and, accordingly, our consolidated financial statements reflect the tax impacts that would result from repatriation. Working Capital. The following summarizes our cash and cash equivalents, working capital, and current ratio for the years endedDecember 31(dollars in thousands): 2016 2015 Year to Year Change Cash and cash equivalents $10,604 $17,788 $(7,184) (40.4)%Marketable securities - 3,503 (3,503) (100.0)%Working capital 24,351 31,129 (6,778) (21.8)%Current ratio 2.7 3.0 The decrease in working capital is mostly due to the decrease in cash and cash equivalents. The change in cash is mostly due to capitalexpenditures to expand our operations at the Blue Springs, Missouri, facilities and the purchase of the assets from Dolphin, a wholly owned subsidiary ofEntertainment Gaming Asia, Inc. (EGT). For additional information see Item 8. Financial Statements and Supplementary Data – Notes to ConsolidatedFinancial Statements – Note 2. Dolphin Asset Acquisition. Cash Flows. The following summarizes our cash flow (dollars in thousands) for the years ended December 31: 2016 2015 Year to Year Change Operating activities $3,547 $10,586 $(7,039) (66.5)%Investing activities (8,319) (743) (7,576) (1,019.7)%Financing activities (2,281) (568) (1,713) 301.6%Effect of exchange rates (131) (456) 325 71.3%Net change $(7,184) $8,819 $(16,003) 181.5% The decrease in cash flows provided by operating activities was primarily caused by an increase in inventories, a decrease in accounts payable andaccrued liabilities, partially offset by an increase in customer deposits and deferred revenue. The increase in cash flows used in investing activities was primarily due to an increase in capital expenditures, including the Dolphin assetacquisition, partially offset by a decrease in net purchases of marketable securities. The increase in cash flows used in financing activities was primarily due to the payment of a special cash dividend to stockholders in December2016 and an increase in principal payments on long-term debt. Facilities. Our facilities are described at Item 2. Properties. 19 Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Capital Expenditures. In 2017 we plan to purchase approximately $6.5 million in property, plant, and equipment, composed mainly of machineryand equipment, compared to$11.9 million of property, plant, and equipment purchased in 2016. In 2017 we plan to continue investing in our Blue Springs,Missouri, facility. The main reason for the 2016 expenditures was due to capital investments being made at our Blue Springs, Missouri facility to increasecapacity and the Dolphin asset acquisition. Selected Quarterly Financial Information Year Ended December 31, 2016 First Second Third Fourth Total (in thousands, except per-share data) Revenues $16,093 $20,344 $22,559 $23,143 $82,139 Cost of revenues 12,125 13,027 15,036 16,615 56,803 Gross profit 3,968 7,317 7,523 6,528 25,336 Selling, administrative, and research anddevelopment expenses 4,005 4,444 4,039 5,288 17,776 Operating (loss) income (37) 2,873 3,484 1,240 7,560 Other (expense) income, net (82) 7 43 (2) (34)(Loss) income before income taxes (119) 2,880 3,527 1,238 7,526 Income tax (benefit) provision (39) 803 1,080 499 2,343 Net (loss) income $(80) $2,077 $2,447 $739 $5,183 Net (loss) income per share: Basic $(0.01) $0.26 $0.31 $0.09 $0.65 Diluted $(0.01) $0.26 $0.30 $0.09 $0.64 Year Ended December 31, 2015 First Second Third Fourth Total (in thousands, except per-share data) Revenues $18,656 $16,249 $19,844 $23,489 $78,238 Cost of revenues 12,332 11,615 13,391 14,065 51,403 Gross profit 6,324 4,634 6,453 9,424 26,835 Selling, administrative, and research anddevelopment expenses 4,555 4,161 4,431 3,779 16,926 Operating income 1,769 473 2,022 5,645 9,909 Other income (expense), net 35 (103) 127 (232) (173)Income before income taxes 1,804 370 2,149 5,413 9,736 Income tax (benefit) provision (153) 511 474 1,973 2,805 Net income (loss) $1,957 $(141) $1,675 $3,440 $6,931 Net income (loss) per share: Basic $0.25 $(0.02) $0.21 $0.43 $0.87 Diluted $0.24 $(0.02) $0.21 $0.43 $0.86 Contractual Obligations and Commercial Commitments On May 11, 2016, we purchased certain assets dedicated to the design and manufacture of chips and plaques for gaming tables from EGT andDolphin as described at Item 8. Financial Statements and Supplementary Data – Notes to Consolidated Financial Statements – Note 2. Dolphin AssetAcquisition. At December 31, 2016, $1.1 million remained to be paid on each of the first two anniversaries of the closing. On June 26, 2015, we entered into a Credit Agreement with Nevada State Bank for a combined $15.0 million, consisting of a $10.0 million seven-year term loan and a $5.0 million five-year revolving loan described at Item 8. Financial Statements and Supplementary Data – Notes to ConsolidatedFinancial Statements – Note 10. Debt. The following table presents the impact that our contractual obligations and commercial commitments at December 31, 2016 are anticipated to haveon our liquidity and cash flow in future periods. Operating leases and contracts that are on a month-to-month basis are not included. For additionalinformation, see Item 8. Financial Statements and Supplementary Data – Notes to Consolidated Financial Statements – Note 11. Commitments andContingencies. 20 Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Payments Due by Period (in thousands) Contractual Obligations Total 0 - 1 years 2 - 3 years 4 - 5 years Thereafter Debt $8,016 $1,367 $2,853 $3,021 $775 Purchase and other commitment obligations (1) 8,934 7,834 1,100 - - Operating leases 2,691 929 1,013 533 216 Interest on debt 654 211 302 135 6 Total contractual cash obligations $20,295 $10,341 $5,268 $3,689 $997 (1)Amounts represent agreements to purchase goods or services and exclude any agreements that are cancelable without penalty. As part of our commitment obligations, we included $2.2 million related to the Dolphin asset acquisition described at Item 8. Financial Statementsand Supplementary Data – Notes to Consolidated Financial Statements – Note 2. Dolphin Asset Acquisition. Off-Balance Sheet Arrangements We have no consolidated off-balance sheet arrangements that have, or are reasonably likely to have, a material current or future effect on ourfinancial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources. Critical Accounting Policies and Estimates Our consolidated financial statements included at Item 8. Financial Statements and Supplementary Data have been prepared in conformity withaccounting principles generally accepted in the United States. The preparation of these financial statements requires us to make estimates and assumptionsthat affect the reported amount of assets, liabilities, net sales and expenses, and related disclosure of contingent assets and liabilities. Certain of ouraccounting estimates, including revenue recognition; the allowance for doubtful accounts; write-downs of obsolete, excess, or slow-moving inventories;goodwill; the valuation and amortizable lives of intangible assets; debt; and the recoverability of deferred tax assets require that we apply significantsubjective judgment in defining the appropriate assumptions for calculating financial estimates. By their nature, these judgments are subject to an inherentdegree of uncertainty. Our judgments are based on our historical experience, our observance of industry trends, information provided by or gathered from ourcustomers, and information available from other outside sources, as appropriate. There can be no assurance that actual results will not differ from ourestimates. The estimates discussed below are considered by management to be those in which our estimates and judgments have a significant impact onissues that are inherently uncertain. To provide a further understanding of the methodology we apply, our significant accounting estimates are discussedbelow and in the notes to our consolidated financial statements. Revenue Recognition We receive revenues from the sales of our gaming products, as well as licensing and services. Revenues are recognized when all of the followinghave been satisfied: •persuasive evidence of an arrangement exists;•the price to the customer is fixed or determinable;•title has passed and any acceptance terms have been fulfilled; and•collection is reasonably assured. Determining whether these requirements have been met may require us to make assumptions and exercise judgment that could significantly impactthe timing and amount of revenue reported each period. In addition, we may enter into arrangements which include software and/or multiple elements ordeliverables, such as RFID solutions, which include RFID equipment, embedded software licenses, and software maintenance services. In such cases,additional judgments and estimates are necessary to ensure the appropriate amounts of revenue are recorded for a given period. On occasion, we may recognize revenue under a bill and hold arrangement. Under a bill and hold arrangement revenue is recognized when theproduct is manufactured, completed, invoiced, and segregated from the seller’s other inventory so that it is not subjected to being used to fill other orders.Upon invoicing under this arrangement, ownership has passed to the buyer with no residual warranty obligation or right of return such that the earningsprocess is complete. The customer must request a bill and hold arrangement, preferably in writing, must commit to the purchase, and the delivery date must befixed. 21 Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. The application of our revenue recognition policies and changes in our assumptions or judgments affect the timing and amounts of our revenues andcosts, as well as deferred revenue. Allowance for Doubtful Accounts We estimate an allowance for doubtful accounts receivable based on a variety of factors, including the length of time the receivables are past due,economic conditions and trends, significant one-time events, and historical experience. Additional amounts are recorded in the allowance based on ourawareness of a particular customer’s ability to meet its financial obligations. A change in our estimates of the allowance for doubtful accounts could have amaterial adverse effect on our consolidated results of operations. Inventories Inventories are stated at the lower of cost or market value. Market value is determined by comparing inventory item carrying values to estimates ofnet realizable value. The analysis of net realizable value includes reviewing overall inventory levels, historical and projected sales or usage of these items,the projected markets for our products, and selling costs. Inventory that we estimate will not be used within the next year is considered non-current inventory.A change in our inventory estimates could have a material adverse effect on our consolidated results of operations. Goodwill Goodwill is recorded when the consideration paid for an acquisition exceeds the fair value of net tangible and intangible assets acquired. Goodwillis measured and tested for impairment on an annual basis or more frequently if we believe indicators of impairment exist. We test goodwill for impairmentusing qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, includinggoodwill. If it is not more likely than not that the fair value of the reporting unit is less than its carrying amount, no further testing is performed. If it is morelikely than not that the fair value of the reporting unit is less than its carrying amount, we perform a quantitative two-step impairment test. The first stepcompares the fair value of the reporting unit with its carrying amount, including goodwill. If the carrying amount exceeds fair value, then the second step isused to measure the amount of impairment loss. Long-lived and Intangible Assets Long-lived assets, including property and equipment and intangible assets, are amortized on a straight-line basis over their economic lives.Judgments are made in determining the estimated useful lives of long-lived assets and if or when an asset has been impaired. These estimates affect theamount of amortization expense recognized in the financial results. We assign lives to our assets based on specific legal and economic characteristics. Weevaluate these assets with definite lives for potential impairment whenever events or changes in circumstances indicate the carrying value may not berecoverable, and we record an impairment charge when the carrying amount of the asset is not recoverable and the carrying amount exceeds the estimated fairvalue. This impairment charge could have a material adverse effect on our consolidated results of operations. Deferred Taxes We record a valuation allowance to reduce our deferred tax assets to the amount that is more likely than not to be realized. We have consideredestimated future taxable income and ongoing tax planning strategies in assessing the amount needed for the valuation allowance. Additionally, we look tothe future reversal of existing taxable temporary differences, taxable income in prior carry-back years, the feasibility of tax planning strategies, and estimatedfuture taxable income. The valuation allowance can be affected by changes to global tax laws, statutory tax rates, and future taxable income estimates. The amount of income taxes we pay is subject to audits by federal, state, and foreign tax authorities, which may result in tax assessments. Ourestimate for the potential outcome for any uncertain tax issue may be highly subjective and judgmental. We believe we have adequately provided for anyreasonably foreseeable outcome related to these tax issues. However, our future results may include favorable or unfavorable adjustments to our estimated taxliabilities due to closure of income tax audits, new regulatory or judicial pronouncements, or other relevant events. As a result, our effective tax rate mayfluctuate significantly on a quarterly basis. 22 Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. We review all of our uncertain tax positions and make a determination as to whether our position is more likely than not to be sustained upon auditby taxing authorities. If a tax position meets this more-likely-than-not threshold, then the related tax benefit is measured based on a cumulative probabilityanalysis of the amount that is more likely than not to be realized upon ultimate settlement or disposition of the underlying tax issue. If actual results differ unfavorably from estimates used, we may not be able to realize all or part of our net deferred tax assets and additionalvaluation allowances may be required. Deferred tax assets and liabilities are determined based on temporary differences between the financial reporting andtax basis of assets and liabilities, applying enacted tax rates expected to be in effect for the year in which the differences are expected to reverse. Weperiodically assess the likelihood that we will be able to recover our deferred tax assets and reflect any changes in our estimates in the valuation allowance,with a corresponding adjustment to earnings or equity, as appropriate. Recently Issued Accounting Standards Recently Issued Accounting Standards are described at Item 8. Financial Statements and Supplementary Data- Notes to Consolidated FinancialStatements – Note 1. Nature of Business and Significant Accounting Policies. Item 7A. Quantitative and Qualitative Disclosures About Market Risk Not required. 23 Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Item 8. Financial Statements and Supplementary Data Report of Independent Registered Public Accounting Firm26 Consolidated Balance Sheets at December 31, 2016 and 201527 Consolidated Statements of Income for the Years Ended December 31, 2016 and 201528 Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2016 and 201529 Consolidated Statements of Stockholders’ Equity for the Years Ended December 31, 2016 and 201530 Consolidated Statements of Cash Flows for the Years Ended December 31, 2016 and 201531 Notes to Consolidated Financial Statements32 24 Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GAMING PARTNERS INTERNATIONAL CORPORATIONAND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS 25 Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Stockholders ofGaming Partners International Corporation and SubsidiariesNorth Las Vegas, Nevada We have audited the accompanying consolidated balance sheets of Gaming Partners International Corporation and Subsidiaries (the “Company”) as ofDecember 31, 2016 and 2015, and the related consolidated statements of income, comprehensive income, stockholders’ equity, and cash flows for the yearsthen ended. These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion onthese consolidated financial statements based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require thatwe plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. TheCompany is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits include consideration ofinternal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose ofexpressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An auditalso includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated financial statements, assessing the accountingprinciples used and significant estimates made by management, as well as evaluating the overall consolidated financial statement presentation. We believethat our audits provide a reasonable basis for our opinion. In our opinion, such consolidated financial statements present fairly, in all material respects, the consolidated financial position of Gaming PartnersInternational Corporation and Subsidiaries as of December 31, 2016 and 2015, and the consolidated results of their operations and their cash flows for theyears then ended, in conformity with accounting principles generally accepted in the United States of America. As discussed in Note 1 and Note 17 to the consolidated financial statements, the Company prospectively changed the manner in which it accounts for thebalance sheet classification of deferred taxes due to the adoption of Accounting Standards Update 2015-17, Balance Sheet Classification of Deferred Taxes. /s/ Moss Adams LLP San Diego, CaliforniaMarch 24, 2017 26 Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GAMING PARTNERS INTERNATIONAL CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETSDecember 31, (in thousands, except share amounts and par value) 2016 2015 ASSETS Current Assets: Cash and cash equivalents $10,604 $17,788 Marketable securities - 3,503 Accounts receivable, net 11,069 10,677 Inventories 14,987 10,199 Prepaid expenses 812 947 Deferred income tax assets - 1,640 Other current assets 1,620 1,576 Total current assets 39,092 46,330 Property and equipment, net 24,310 14,102 Goodwill 10,292 10,292 Intangible assets, net 1,818 2,505 Deferred income tax assets 1,579 710 Inventories, non-current 598 670 Other assets, non-current 2,310 2,635 Total assets $79,999 $77,244 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable $3,466 $4,498 Accrued liabilities 5,698 6,456 Customer deposits and deferred revenue 3,679 2,080 Current portion of long-term debt 1,367 1,343 Income taxes payable 531 824 Total current liabilities 14,741 15,201 Long-term debt 6,649 8,002 Deferred income tax liabilities - 170 Other liabilities, non-current 1,076 83 Total liabilities 22,466 23,456 Commitments and contingencies (Note 11) Stockholders' Equity: Preferred stock, authorized 10,000,000 shares, $0.01 par value, none issued and outstanding - - Common stock, authorized 30,000,000 shares, $0.01 par value, 8,219,577 shares issued and 7,928,594shares outstanding 82 82 Additional paid-in capital 20,031 20,033 Treasury stock at cost: 290,983 shares (2,263) (2,263)Retained earnings 42,044 37,812 Accumulated other comprehensive loss (2,361) (1,876)Total stockholders' equity 57,533 53,788 Total liabilities and stockholders' equity $79,999 $77,244 See Notes to Consolidated Financial Statements 27 Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GAMING PARTNERS INTERNATIONAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOMEYears Ended December 31, (in thousands, except earnings per share) 2016 2015 Revenues $82,139 $78,238 Cost of revenues 56,803 51,403 Gross profit 25,336 26,835 Marketing and sales 6,407 6,438 General and administrative 10,181 9,273 Research and development 1,188 1,215 Operating income 7,560 9,909 Other (expense) income, net (34) (173)Income before income taxes 7,526 9,736 Income tax provision 2,343 2,805 Net income $5,183 $6,931 Earnings per share: Basic $0.65 $0.87 Diluted $0.64 $0.86 Weighted-average shares of common stock outstanding: Basic 7,929 7,926 Diluted 8,042 8,040 See Notes to Consolidated Financial Statements 28 Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GAMING PARTNERS INTERNATIONAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOMEYears Ended December 31, (in thousands) 2016 2015 Net income $5,183 $6,931 Other comprehensive loss: Foreign currency translation adjustment, net of tax (485) (1,555)Total comprehensive income $4,698 $5,376 See Notes to Consolidated Financial Statements 29 Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GAMING PARTNERS INTERNATIONAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITYYears Ended December 31, 2016 and 2015(in thousands, except share amounts) Accumulated Additional Other Common Stock Paid-In Treasury Retained Comprehensive Shares Amount Capital Stock Earnings Loss Total Balance, January 1, 2015 7,916,094 $82 $19,886 $(2,263) $30,881 $(321) $48,265 Net income - - - - 6,931 - 6,931 Common stock options exercised 12,500 - 87 - - - 87 Stock compensation expense - - 77 - - - 77 Tax impacts of stock options - - (17) - - - (17)Foreign currency translation adjustment - - - - - (1,555) (1,555)Balance, December 31, 2015 7,928,594 $82 $20,033 $(2,263) $37,812 $(1,876) $53,788 Net income - - - - 5,183 - 5,183 Stock compensation expense - - 86 - - - 86 Tax impacts of stock options - - (88) - - - (88)Dividend paid to shareholders - - - - (951) - (951)Foreign currency translation adjustment - - - - - (485) (485)Balance, December 31, 2016 7,928,594 $82 $20,031 $(2,263) $42,044 $(2,361) $57,533 See Notes to Consolidated Financial Statements 30 Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GAMING PARTNERS INTERNATIONAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWSYears Ended December 31, (in thousands) 2016 2015 Cash Flows from Operating Activities Net income $5,183 $6,931 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation of property and equipment 3,319 2,388 Amortization of intangible assets 273 288 Provision for bad debt (102) 711 Deferred income taxes 592 573 Stock compensation expense 86 77 Tax benefit on exercise or forfeiture of stock options (88) (17)Loss (gain) on sale or disposal of property and equipment 7 (1,318)(Gain) on sale of marketable securities (1) (7)Impairment of intangibles 414 - Pension plan adjustment - 4 Change in operating assets and liabilities: Accounts receivable (293) (1,097)Inventories (4,909) (1,613)Prepaid expenses and other current assets 96 (805)Non-current other assets 234 124 Accounts payable (1,047) 1,273 Accrued liabilities (1,525) 2,709 Customer deposits and deferred revenue 1,601 (116)Income taxes payable (293) 481 Net cash provided by operating activities 3,547 10,586 Cash Flows from Investing Activities Purchases of marketable securities - (8,209)Proceeds from sale of marketable securities 3,556 7,935 Proceeds from sale of property and equipment, net of fees - 3,795 Capital expenditures (11,875) (4,264)Net cash used in investing activities (8,319) (743) Cash Flows from Financing Activities Cash paid for demand line of credit - (10,000)Proceeds from debt obligation - 10,000 Principal payments on long-term debt (1,330) (655)Dividends paid (951) - Proceeds from exercise of stock options - 87 Net cash used in financing activities (2,281) (568)Effect of exchange rate changes on cash (131) (456)Net (decrease) increase in cash and cash equivalents (7,184) 8,819 Cash and cash equivalents, beginning of period 17,788 8,969 Cash and cash equivalents, end of period $10,604 $17,788 Supplemental disclosures of cash flow information: Cash paid for interest $242 $248 Cash paid, net of refunds received, for income taxes $2,126 $1,409 Supplemental disclosure of non-cash investing and financing activities Property, plant and equipment acquired through accounts payable, accrued and non-current otherliabilities $1,849 $240 See Notes to Consolidated Financial Statements 31 Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GAMING PARTNERS INTERNATIONAL CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 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 North Las Vegas, Nevada. Our business activities include themanufacture and sale of casino currencies, playing cards, table accessories, table layouts, dice, gaming furniture, roulette wheels, and RFID readers andsoftware, all of which are used with casino table games such as blackjack, poker, baccarat, craps, and roulette. We have three operating subsidiaries: Gaming Partners International USA, Inc. (GPI USA) (including GPI Mexicana S.A. de C.V. (GPI Mexicana), ourmaquiladora manufacturing operation in Mexico, and GPI USA Blue Springs, our manufacturing facility in Missouri); 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 productsmanufactured in either San Luis Rio Colorado, Mexico, or Blue Springs, Missouri. The remainder is either manufactured in France or purchasedfrom United States vendors. We warehouse inventory in San Luis, Arizona; Blue Springs, Missouri; and North Las Vegas, Nevada. We have salesoffices in North Las Vegas, Nevada; Atlantic City, New Jersey; Gulfport, Mississippi; and Blue Springs, Missouri. •GPI SAS sells primarily in Europe and Africa out of its office in Beaune, France. GPI SAS predominantly sells casino currencies, including bothAmerican-style, known as chips, and European-style, known as plaques and jetons. Most of the products sold by GPI SAS are manufactured inFrance, with the remainder manufactured in Mexico. •GPI Asia, located in Macau S.A.R., China, distributes our full product line in the Asia-Pacific region. GPI Asia also sells table layouts that itmanufactures in Macau S.A.R. We are one of the gaming industry’s leading manufacturers and suppliers of casino table game equipment. We custom manufacture and supplycasino currencies, playing cards, table layouts, gaming furniture, table accessories, dice, roulette wheels, and RFID readers and software, all of which are usedwith casino table games such as blackjack, poker, baccarat, craps, and roulette. Our products fall into two categories – non-consumable and consumable. Non-consumable products consist of casino currencies, gaming furniture, and RFID solutions. These products typically have a useful life of several years or longer.Sales of non-consumables are typically driven by casino openings, expansions, and rebrandings, as well as replacements in the normal course of business.Consumable products consist of playing cards, table accessories, table layouts, and dice. These products each have a useful life that ranges from several hoursfor playing cards and dice to several months for layouts. Casinos tend to buy these products annually if not more frequently. Significant Accounting Policies Basis of Consolidation and Presentation. The consolidated financial statements include the accounts of GPIC and its wholly-owned subsidiaries GPI USA,GPI SAS, GPI Asia, and GPI Mexicana. All material intercompany balances and transactions have been eliminated in consolidation. The consolidatedfinancial statements have been prepared in accordance with accounting principles generally accepted in the United States. Cash and Cash Equivalents. We consider all highly-liquid investments with original maturities of three months or less to be cash and cash equivalents. Wemaintain cash and cash equivalents in various United States banks. Several accounts are in excess of the federally-insured limit of $250,000. We alsomaintain cash and cash equivalents in foreign banks that are not insured. Fair Value of Financial Instruments. The fair value of cash and cash equivalents, marketable securities, accounts receivable, accounts payable and currentportion of long-term debt approximates the carrying amount of these financial instruments due to their short-term nature. The carrying values of theCompany's long-term debt instruments are considered to approximate their fair values because the interest rates of these instruments are variable orcomparable to current rates available to the Company. 32 Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Marketable Securities. We account for our investments in marketable securities as available-for-sale and, as such, they are recorded on our consolidatedbalance sheets at estimated fair value. Unrealized holding gains and losses are excluded from earnings and are, instead, reported within accumulated othercomprehensive loss. Accounts Receivables and Customer Deposits. We perform ongoing credit evaluations of our customers and for casino currency and most significant orders,such as those orders for casino openings, generally require a deposit prior to commencing work on a customer order. These customer deposits are classified asa current liability on the consolidated balance sheets. We also maintain an allowance for doubtful accounts to state trade receivables at their estimatedrealizable value. This allowance applies to all customers and is estimated based on a variety of factors, including the length of time the receivables are pastdue, economic conditions and trends, significant one-time events, and historical experience. Changes are made to the allowance based on our awareness of aparticular customer’s ability to meet its financial obligations. Receivables are written-off when management determines that collectability is remote. Inventories. Inventories are stated at the lower of cost or market value. Cost is determined using a weighted-average method for GPI SAS and a first-in, first-out method for GPI USA and GPI Asia. Market value is determined by comparing inventory item carrying values to estimates of net realizable value. Theanalysis of net realizable value includes reviewing overall inventory levels, historical and projected sales, or usage of these items, the projected markets forour products, and selling costs. Inventories that we estimate will not be used within one year is considered non-current inventory. Property and Equipment. Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed using the straight-linemethod for financial reporting purposes over the following estimated useful lives: YearsBuildings and Improvements3 - 40Equipment and Furniture2 - 15Vehicles5 - 7 Goodwill. Goodwill is recorded when the consideration paid for an acquisition exceeds the fair value of net tangible and intangible assets acquired. Goodwillis measured and tested for impairment on an annual basis or more frequently if we believe indicators of impairment exist. We test goodwill for impairmentusing qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, includinggoodwill. If it is not more likely than not that the fair value of the reporting unit is less than its carrying amount, no further testing is performed. If it is morelikely than not that the fair value of the reporting unit is less than its carrying amount, we perform a quantitative two-step impairment test. The first stepcompares the fair value of the reporting unit with its carrying amount, including goodwill. If the carrying amount exceeds fair value, then the second step isused to measure the amount of impairment loss. Long-Lived and Intangible Assets. We evaluate the carrying value of long-lived assets (including property and equipment and intangible assets) for possibleimpairment when events or change in circumstances indicate that the carrying value of an asset may not be recoverable. In general, we will identify apotential impairment loss when the sum of undiscounted expected cash flows from the asset is less than the carrying amount of such asset. We record animpairment loss when the carrying amount of the intangible asset is not recoverable and the carrying amount exceeds the estimated fair value. Intangibleassets, such as patents and trademarks, are amortized using the straight-line method over their economic lives. Revenue Recognition. For casino table game product sales, we record revenue, net of excise and sales taxes, when it is realized, or realizable, and earned. Weconsider these criteria met when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the sales price is fixed ordeterminable, collectability is reasonably assured and, if required, acceptance is received from the customer. Shipping costs billed to our customers arereflected in revenues, with the related expense included in cost of revenues. Sales tax collected from customers is excluded from revenue and included inaccrued expenses. We occasionally enter into multiple-element arrangements with our customers to provide RFID solutions. Such transactions may includedeliverables such as RFID equipment, installation and training services, embedded RFID software licenses, and limited software support services. In sucharrangements, RFID equipment and embedded RFID software work together to deliver the functionality purchased by our customer. Therefore, we apply theprovisions of multiple-element accounting to separate the deliverables and allocate the total arrangement consideration based upon relative estimated sellingprices. Each unit of accounting is then accounted for under the applicable revenue recognition guidance. For RFID equipment and related services, revenuegenerally is recorded when all customer-defined acceptance criteria are satisfied. For RFID software support services, revenue generally is amortized over theterm of the support contract. 33 Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. On occasion, we may recognize revenue under a bill and hold arrangement. Under a bill and hold arrangement revenue is recognized when theproduct is manufactured, completed, invoiced, and segregated from the seller’s other inventory so that it is not subjected to being used to fill other orders.Upon invoicing under this arrangement, ownership has passed to the buyer with no residual warranty obligation or right of return such that the earningsprocess is complete. The customer must request a bill and hold arrangement, preferably in writing, must commit to the purchase, and the delivery date must befixed. Research and Development. Research and development costs are the costs related to developing new and improved products and manufacturing processes,including staff compensation and related expenses, subcontract costs, materials, and supplies. Such costs are charged to expense when incurred and areincluded in our consolidated statements of income. Income Taxes. We recognize a current tax liability or asset for estimated taxes payable or refundable on tax returns for the current year and a deferred non-current tax liability or asset for estimated future tax effects, attributable to temporary differences and carryforwards. GPIC and its subsidiaries file separate income tax returns in their respective jurisdictions. Income taxes are provided for the tax effects oftransactions reported in the consolidated financial statements and consist of taxes currently due plus deferred taxes related primarily to differences betweenthe basis of assets and liabilities for financial and income tax reporting. The deferred tax assets and liabilities represent the future tax consequences of thosedifferences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. Deferred taxes also are recognized for operatinglosses that are available to offset future income taxes. We review all of our tax positions and make a determination as to whether our position is more likely than not to be sustained upon examination bytax authorities. If a tax position meets the more-likely-than-not standard, then the related tax benefit is measured based on the cumulative probability that theamount is more likely than not to be realized upon ultimate settlement or disposition of the underlying issue. We recognize interest and penalties related tounrecognized tax positions in the provision for income taxes on our consolidated statements of income. Foreign Currency Transactions. The financial statements of GPI SAS are measured using the euro as the functional currency. Assets and liabilities of GPISAS are translated into the U.S. dollar at exchange rates at the balance sheet date. Revenues and expenses are translated into the U.S. dollar at average rates ofexchange in effect during the year. The resulting cumulative translation adjustments are recorded within accumulated other comprehensive loss. The financial statements of GPI Asia and GPI Mexicana are measured using the U.S. dollar as the functional currency. Non-monetary assets andliabilities are translated at historical exchange rates, and monetary assets and liabilities are translated at current exchange rates. Exchange gains and lossesarising from translation are included in other income and expense in the consolidated statements of income. Transaction gains and losses that arise from exchange rate fluctuations on transactions with third parties denominated in a currency other than thefunctional currency are included in the results of operations as incurred. Comprehensive Income. Comprehensive income includes net income, unrealized gains and losses on available-for-sale securities recorded net of tax, andforeign currency translation adjustments. Estimates. The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management tomake estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of theconsolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Estimates and assumptions have beenmade in determining the allowance for doubtful accounts receivable; write-downs of slow moving, excess, and obsolete inventories; the depreciable lives offixed and intangible assets; estimates for the recoverability of long-lived assets, including intangible assets; the recoverability of deferred tax assets; andpotential exposures relating to litigation, claims, and assessments. Actual results could differ from those estimates and assumptions. 34 Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Recently Issued Accounting Standards. In October 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU)2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. These amendments require an entity to recognize the income taxconsequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The amendments eliminate the exception for an intra-entitytransfer of an asset other than inventory. The ASU becomes effective for annual reporting periods beginning after December 15, 2017, including interimreporting periods within those annual reporting periods. The Company has not adopted this guidance for 2016 and is currently evaluating the impact ofadoption but does not expect the adoption to significantly impact the consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718), to simplify several aspects of the accounting forshare-based payment award transactions including: income tax consequences; classification of awards as either equity or liabilities; and classification on thestatement of cash flows. The amendments are effective for public companies for annual periods beginning after December 15, 2016, and interim periodswithin those annual periods. The Company has not adopted this guidance for 2016 and is currently evaluating the impact of adoption and will consult withaccounting experts as needed to assist with the implementation of this standard. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), to increase transparency and comparability among organizations by reportinglease assets and lease liabilities, both finance (capital) and operating leases, on the balance sheet and disclosing key information about leasing arrangements.For public companies, the updated guidance is effective for the financial statements issued for fiscal years beginning after December 15, 2018 (includinginterim periods within those fiscal years). Early adoption is permitted. The Company has not adopted this guidance for 2016 and is currently evaluating theimpact of adoption and will consult with accounting experts as needed to assist with the implementation of this standard. In November 2015, the FASB issued ASU 2015-17 Balance Sheet Classification of Deferred Taxes, which requires that deferred tax assets anddeferred tax liabilities be classified as noncurrent in the balance sheet. ASU No. 2015-17 is effective for the interim and annual periods beginning afterDecember 15, 2016. Early adoption is permitted. During the fourth quarter of 2016, we elected to prospectively adopt this standard. The prior reportingperiod was not retrospectively adjusted. The adoption of this guidance had no impact on our consolidated statements of income and comprehensive income. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. The guidance applies to any entitymeasuring inventory using first-in, first-out or average cost. The main provision of this guidance requires an entity to measure inventory within the scope ofthis ASU at the lower of cost and net realizable value. This guidance is effective for fiscal years beginning after December 15, 2016, and interim periodswithin fiscal years beginning after December 15, 2017. A reporting entity should apply the amendments prospectively with earlier application permitted as ofthe beginning of an interim or annual reporting period. The Company has not adopted this guidance for 2016 and is currently evaluating the impact ofadoption but does not expect the adoption to significantly impact the consolidated financial statements. In August 2015, the FASB issued ASU 2014-15, 'Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure ofUncertainties about an Entity’s Ability to Continue as a Going Concern. The amendments in ASU 2014-15 are intended to define management’sresponsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnotedisclosures. This ASU is effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December15, 2016. During the fourth quarter of 2016, we early adopted this standard. As such we evaluated the Company’s situation and concluded that there was nosubstantial doubt about the Company’s ability to continue as a going concern. In May 2014, the FASB issued ASU 2014-09, Revenues from Contracts with Customers (Topic 606). This guidance applies to any entity that eitherenters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts arewithin the scope of other standards. The core principle of this guidance is that an entity should recognize revenue to depict the transfer of promised goods orservices to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Thisguidance supersedes existing revenue recognition guidance, including most industry-specific guidance, as well as certain related guidance on accounting forcontract costs. To further assist with adoption and implementation of ASU 2014-09, the FASB issued the following ASUs: •ASU 2016-08 (Issued March 2016) - Principal versus Agent Consideration (Reporting Revenue Gross versus Net)•ASU 2016-10 (Issued April 2016) - Identifying Performance Obligations and Licensing•ASU 2016-12 (Issued May 2016) - Narrow-Scope Improvements and Practical Expedients•ASU 2016-20 (Issued December 2016) - Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers 35 Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. This standard is effective in the first quarter of 2018 for public companies and requires either a retrospective or a modified retrospective approach toadoption. The Company has not adopted this guidance for 2016 and is currently evaluating the impact of adoption but does not expect it to significantlyimpact the consolidated financial statements. Note 2. Dolphin Asset Acquisition On May 11, 2016, the Company entered into and closed an Asset Purchase Agreement to purchase certain assets used in the design and manufactureof casino currency from Dolphin Products Limited (Dolphin), a wholly owned subsidiary of Entertainment Gaming Asia Inc. (EGT). The purchased assetswere primarily equipment and inventory. The acquisition was treated as an asset acquisition. The total cost of the acquisition was $7.3 million, with $5.1 million paid at December 31, 2016and $1.1 million, included in accrued liabilities and non-current other liabilities, to be paid on each of the first two anniversaries of the closing. Theacquisition cost has been allocated as follows (in thousands): Assetsacquired Property and equipment $5,691 Inventory 1,622 Total acquired $7,313 Note 3. Cash, Cash Equivalents, and Marketable Securities We hold our cash, cash equivalents, and marketable securities in various financial institutions in the countries shown below. Substantially allaccounts have balances in excess of government-insured limits. The following summarizes our holdings at December 31 (in thousands): 2016 2015 Cash andCashEquivalents MarketableSecurities Total Cash andCashEquivalents MarketableSecurities Total Macau S.A.R., China $4,104 $- $4,104 $4,040 $- $4,040 France 3,263 - 3,263 887 3,503 4,390 United States (including Mexico) 3,237 - 3,237 12,861 - 12,861 Total $10,604 $- $10,604 $17,788 $3,503 $21,291 Available-for-sale marketable securities as of December 31, 2015 consist of investments in securities such as certificates of deposit offered by Frenchbanks and bond mutual funds (in thousands): 2015 Cost UnrealizedGain/(Loss) Fair Value Certificates of deposit $2,727 $- $2,727 Bond mutual funds 776 - 776 Total marketable securities $3,503 $- $3,503 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 aliability in an orderly transaction between market participants at the measurement date. We have determined that all of our marketable securities are Level 1financial instruments, with asset values recorded at quoted prices in active markets for identical assets. Note 4. Accounts Receivable and Allowance for Doubtful Accounts At December 31, 2016, one casino customer accounted for 25% of our accounts receivable balance. At December 31, 2015, a different casinocustomer accounted for 33% of our accounts receivable balance. 36 Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. The allowance for doubtful accounts consists of the following (in thousands): Balance atBeginning ofYear Provision Write-offs,Net ofRecoveries ExchangeRate Effect Balance atEnd ofPeriod 2016 $990 $(102) $(84) $- $804 2015 $302 $711 $(19) $(4) $990 Note 5. Inventories Inventories consist of the following at December 31 (in thousands): 2016 2015 Raw materials $11,129 $7,653 Work in progress 1,137 668 Finished goods 3,319 2,548 Total inventories $15,585 $10,869 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 ourinventories on our consolidated balance sheets is as follows at December 31 (in thousands): 2016 2015 Current $14,987 $10,199 Non-current 598 670 Total inventories $15,585 $10,869 37 Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Note 6. Other Current Assets Other current assets consist of the following at December 31 (in thousands): 2016 2015 Income tax-related assets $722 $135 Refundable value-added tax 516 818 Deposits 328 478 Other, net 54 145 Total other current assets $1,620 $1,576 Note 7. Property and Equipment Property and equipment consists of the following at December 31 (in thousands): 2016 2015 Land $636 $520 Buildings and improvements 10,280 6,839 Equipment and furniture 35,618 26,912 Vehicles 379 403 Construction in progress 1,327 1,403 48,240 36,077 Less accumulated depreciation (23,930) (21,975)Property and equipment, net $24,310 $14,102 Depreciation expense for the years ended December 31, 2016 and 2015 was $3.3 million and $2.4 million, respectively. At December 31, 2016 the$1.3 million of construction in progress was primarily related to Dolphin assets waiting to be placed in service and the building expansion at our BlueSprings, Missouri, facility. At December 31, 2015, the $1.4 million of construction in progress was primarily related to the Blue Springs, Missouri, facilitybuilding expansion. Note 8. Goodwill and Intangible Assets We have goodwill valued at $10.3 million as of December 31, 2016 arising from the GemGroup acquisition in 2014. Intangible assets consist of the following at December 31 (dollars in thousands): 2016 2015 GrossCarryingAmount AccumAmort NetCarryingAmount GrossCarryingAmount AccumAmort NetCarryingAmount EstimatedUsefulLife(Years)Trademarks $1,711 $(579) $1,132 $1,772 $(454) $1,318 10-15Customer list 897 (278) 619 1,323 (245) 1,078 10-15Patents 542 (527) 15 542 (520) 22 14Other intangible assets 372 (320) 52 372 (285) 87 3-10Total intangible assets $3,522 $(1,704) $1,818 $4,009 $(1,504) $2,505 Amortization expense for intangible assets for the years ended December 31, 2016 and 2015 was $273,000 and $288,000, respectively. Thereduction in trademarks and in customer list reflects a reduction in the fair value of those items. A $400,000 impairment loss for a decrease in fair value of atrademark and a customer list was recorded under general and administrative expenses. The decrease in fair value was the result of the loss of two customers. 38 Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. The following table provides estimated amortization expense for the years ending December 31 (in thousands): Amortization Year Expense 2017 $224 2018 209 2019 203 2020 202 2021 193 Thereafter 787 Total $1,818 Note 9. Accrued Liabilities Accrued liabilities consist of the following at December 31 (in thousands): 2016 2015 Accrued bonuses and commissions $1,221 $1,590 Accrued salaries, wages, and related costs 1,182 1,308 Accrued fixed asset acquisition liability 1,076 - Accrued vacation 894 906 Miscellaneous taxes 578 576 Accrued legal fees 15 550 Other 732 1,526 Total accrued liabilities $5,698 $6,456 The accrued fixed asset acquisition liability is the current portion of the liability owed to EGT and resulting from the Dolphin acquisition (describedat Item 8. Financial Statements and Supplementary Data – Notes to Consolidated Financial Statements – Note 2. Dolphin Asset Acquisition). A non-currentliability is also recorded for the same amount: $1.1 million. Note 10. Debt On June 26, 2015, the Company entered into a Credit Agreement with Nevada State Bank to borrow a combined $15.0 million, consisting of a $10.0million seven-year term loan and a $5.0 million five-year revolving loan. The Company borrowed the full amount under the term loan and has not drawn onfunds under the revolving loan. The term loan will mature on June 26, 2022, and the revolving loan will mature on June 26, 2020. The Credit Agreementcontains customary representations, warranties, and events of default, and affirmative, negative and financial covenants. The covenants contain, among otherthings, limitations on the Company's and its subsidiaries' ability to merge, consolidate, dispose of assets, or incur liens or certain indebtedness. The Companyis required to maintain a fixed charge coverage ratio greater than 1.15 to 1.00 and leverage ratio less than 3.00 to 1.00. The Company is in compliance withall financial covenants as of December 31, 2016. Interest on funds borrowed under the term loan and the revolving loan are charged at a rate per annum equal to LIBOR plus 2.25%. The term loanhas a straight-line seven year amortization schedule. At December 31, 2016, estimated repayment obligations for the principal balance of long-term debt are as follows (in thousands): 39 Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Year LongTerm Debt 2017 $1,367 2018 1,406 2019 1,447 2020 1,489 2021 1,532 Thereafter 775 $8,016 Note 11. Commitments and Contingencies Operating Lease Commitments The Company has various operating leases that are used in the normal course of business. The operating leasesconsist of buildings and equipment that expire at various points through 2022. Operating lease expense for the years ended December 31, 2016 and 2015 was $1,704,000 and $841,000, respectively. Our operating lease expensesare recognized on a straight-line basis. The following schedule reflects our future minimum lease payments under operating leases, including related-party payments described at Item 8.Financial Statements and Supplementary Data – Notes to Consolidated Financials Statements - Note 19. Related-Party Transactions for the years endingDecember 31 (in thousands): Minimum Lease Year Payments 2017 $929 2018 719 2019 294 2020 264 2021 269 Thereafter 216 Total $2,691 Legal Proceedings and Contingencies Liabilities for material claims against us are accrued when a loss is considered probable and can bereasonably estimated. Legal costs associated with claims are expensed as incurred. From time to time we are engaged in disputes and claims that arise in the normal course of business. We believe that the ultimate outcome of theseproceedings will not have a material adverse impact on our consolidated financial position or results of operations, but the outcome of these actions isinherently difficult to predict. There can be no assurance that we will prevail in any such litigation. Liabilities for material claims against us are accrued whena loss is considered probable and can be reasonably estimated. Legal costs associated with claims are expensed as incurred. Employment Agreements The Company has employment agreements with key employees which include severance commitments in the event theCompany terminates the employee without cause. Total commitments under the agreements aggregate approximately $697,000. Note 12. 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 itsrevenues 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). The CEOmanages 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 S.A.R.; that is, the individual locations do nothave “segment,” or “product line,” managers who report to our CEO. 40 Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. The following table presents certain data by geographic area for the years ended December 31 (dollars in thousands): 2016 2015 Revenues The Americas $56,247 68.5% $53,211 68.0%Asia-Pacific 21,353 26.0% 21,341 27.3%Europe and Africa 4,539 5.5% 3,686 4.7%Total $82,139 100.0% $78,238 100.0% The following table represents our net sales by product line for the years ended December 31 (dollars in thousands): 2016 2015 Casino currency without RFID $15,698 19.1% $17,762 22.8%Casino currency with RFID 16,123 19.6% 12,852 16.4%Total casino currency 31,821 38.7% 30,614 39.2% Playing cards 26,708 32.5% 24,171 30.9%Table accessories and other products 6,639 8.1% 7,243 9.3%Table layouts 5,259 6.4% 6,199 7.9%RFID solutions 3,000 3.7% 2,186 2.8%Dice 2,859 3.5% 2,685 3.4%Gaming furniture 2,645 3.2% 1,990 2.5%Shipping 3,208 3.9% 3,150 4.0%Total $82,139 100.0% $78,238 100.0% In 2016, we had no casino customer that accounted for 10% or more of revenues. In 2015, one Macau S.A.R casino customer accounted for 10% ofrevenues. The following table represents our property and equipment, net by geographic area at December 31 (in thousands): 2016 2015 United States $13,242 $7,000 Mexico 6,142 3,249 France 4,614 3,544 Macau S.A.R., China 312 309 Total $24,310 $14,102 The following table represents our intangible assets, net by geographic area at December 31 (in thousands): 41 Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. 2016 2015 United States $1,772 $2,006 Macau S.A.R., China 46 497 France - 2 Total $1,818 $2,505 Note 13. Pension Plans For employees of GPI SAS, we sponsor a non-contributory, defined-benefit pension plan (the Pension Plan) which funds a mandatory payment whenemployees retire at age 65. The lump-sum benefit amount is based on years of service, job classification, and compensation in the 12 months prior toretirement. The following amounts relate to the Pension Plan at December 31 (in thousands): 2016 2015 Change in benefit obligation: Benefit obligation at beginning of year $458 $472 Service cost 28 28 Interest cost 10 9 Actuarial loss 38 5 Benefits paid (18) (7)Effect of foreign exchange rate changes (19) (49)Benefit obligation at end of year $497 $458 Change in plan assets: Fair value of plan assets at beginning of year $362 $401 Actual (loss) return on plan assets (34) 2 Effect of foreign exchange rate changes (11) (41)Fair value of plan assets at end of year 317 362 Funded status and accrued benefit cost $(180) $(96) At December 31, 2016 and 2015, the accrued benefit cost of $180,000 and $96,000, respectively, was recognized in the consolidated balance sheetin other liabilities. Pension Plan assets are measured using a Level 1 valuation methodology and consist of the following asset funds at December 31 (in thousands): 2016 2015 Worldwide bond fund $158 $165 Guaranteed equity fund 31 58 European equity fund 128 139 Fair value of plan assets at end of year $317 $362 We did not make any contribution to the Pension Plan in either 2016 or 2015. The weighted-average assumptions used in measuring the net periodic benefit cost and Pension Plan obligations as of December 31 are: 2016 2015 Net periodic benefit cost: Discount rate 1.50% 2.00% Pension Plan obligations: Discount rate 1.50% 2.00%Rate of compensation increase 2.00% 2.00% 42 Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. The accumulated benefit obligation was $405,000 and $370,000 as of December 31, 2016 and 2015, respectively. Net pension expense consisted of the following for the years ended December 31 (in thousands): 2016 2015 Service-cost benefits earned during the period $28 $28 Interest expense on benefit obligation 10 9 Actual (return) loss on plan assets 34 (2)Actuarial loss 38 5 Net pension expense $110 $40 Projected benefit payments from the Pension Plan as of December 31, 2016 are estimated at $6,000 for 2017 through 2020, and an aggregate of$158,000 for 2021 through 2025. We also sponsor a 401(k) plan for employees in the United States (the 401K Plan) who have worked for us for longer than six months and are21 years of age or older. Our contributions to the 401K Plan are based on the amounts contributed by eligible employees. Eligible employees can elect tocontribute into the 401K Plan up to the lesser of the IRS annual limit or 15 percent of their earnings. We contribute $0.50 for each $1.00 contributed by aparticipant in the 401K Plan up to 4 percent of the participant’s wages. Our contributions to the 401K Plan for the years ended December 31, 2016 and 2015were $101,000 and $110,000, respectively. Note 14. 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 our common stock. On November 30, 2012, the Board of Directors increased the number of shares available for repurchase to 498,512 shares. From theprogram’s inception through December 31, 2016, we have repurchased an aggregate of 282,922 shares of our common stock at a cost of $2.1 million, or aweighted-average price of $7.30 per share. No shares were repurchased during 2016 or 2015, and there is no assurance that we will repurchase any additionalshares under the repurchase program. As of December 31, 2016, 215,590 shares remain authorized for repurchase. Repurchases are subject to marketconditions, share price, and other factors, as well as periodic review by the Board of Directors. In December 2016 we paid a special cash dividend of $0.12 per issued and outstanding common share resulting in an aggregate dividend of$951,431. Note 15. Stock Option Programs and Share-based Compensation Expense We have one active stock option plan which is the 1994 Directors’ Stock Option Plan, as amended and extended through January 31, 2019 (theDirectors’ Plan). We are also party to a stock option agreement (Gronau Agreement) with our CEO, Gregory S. Gronau. The Directors’ Plan and the GronauAgreement were both approved by our stockholders. The Directors’ Plan provides that each non-employee director, upon joining the Board of Directors, will receive an initial option to purchase 6,000shares of common stock. The initial option grant vests over a three-year period, with one-third of the option grant vesting at the end of each year. At thebeginning of the fourth year of service on the Board of Directors, and each year thereafter, each non-employee director receives an annual grant to purchase2,000 shares of common stock. In addition, each non-employee director annually receives options to purchase 1,500 shares of common stock for serving oncertain committees of the Board of Directors. Options granted after the initial option grant vest immediately and are exercisable after six months. The Board of Directors may grant discretionary stock options covering up to 100,000 shares to non-employee directors. Discretionary stock optionsvest immediately and are exercisable after six months. There were no discretionary stock option grants in 2016 or 2015. A maximum of 450,000 shares ofcommon stock may be issued pursuant to options granted under the Directors’ Plan. 43 Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Mr. Gronau, was granted an option to purchase 150,000 shares of our common stock in 2009 pursuant to the Gronau Agreement. The stock optionhas a ten-year term and vested over a five-year period as follows: 20,000 shares on the first anniversary of the date of the grant; 30,000 shares on each of thesecond, third, and fourth anniversaries; and 40,000 shares on the fifth anniversary of the date of grant. The following is a summary of stock option activity for the years ended December 31, 2016 and 2015: Shares Weighted-AverageExercisePrice Weighted-AverageRemainingContractualTerm (Years) AggregateIntrinsic Value(in thousands) Outstanding at January 1, 2015 384,000 $7.60 Granted 24,750 9.59 Expired (3,500) 18.37 Exercised (12,500) 6.97 Outstanding at December 31, 2015 392,750 7.65 Granted 25,500 9.83 Expired (15,500) 19.40 Outstanding at December 31, 2016 402,750 $7.34 3.9 $1,855 Exercisable at December 31, 2016 387,250 $7.22 3.6 $1,855 For the year ended December 31, 2016, there were no options exercised. For the year ended December 31, 2015, the total intrinsic value of optionsexercised was $87,000. We estimate the fair value of each stock option award on the grant date using the Black-Scholes valuation model. Dividends and expected volatilityare based on historical factors related to our common stock. The risk-free rate is based on United States Treasury rates appropriate for the expected term,which is based on the contractual term of the options, as well as historical exercise and termination behavior. The following table summarizes the weighted-average assumptions used, and related information, for option activity for the years indicated. Option valuation assumptions: 2016 2015 Dividend yield 3.0% 3.0%Expected volatility 34.1% 34.1%Risk-free interest rate 1.36% 1.50%Expected term of options 5.6 yrs 5.6 yrs Weighted-average fair value of options granted during the period $3.35 $3.09 The following table summarizes our reported stock compensation expense, which is included in general and administrative expenses in ourconsolidated statements of income as of December 31 (in thousands): 2016 2015 Stock compensation $86 $77 Estimated tax benefit (31) (28)Total stock compensation, net of tax benefit $55 $49 44 Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Note 16. Other Income and Expense Other income and expense consists of the following for the years ended December 31 (in thousands): 2016 2015 Interest income $23 $12 Interest expense (242) (248)Gain on foreign currency transactions 187 38 Other (expense) income, net (2) 25 Total other (expense) income, net $(34) $(173) Note 17. Income Taxes The following table provides an analysis of our provision for income taxes for the years ended December 31 (in thousands): 2016 2015 Current: U.S. Federal $1,035 $1,207 U.S. State 43 251 Foreign 619 464 Total Current 1,697 1,922 Deferred: U.S. Federal 666 673 U.S. State 59 (127)Foreign (79) 337 Total Deferred 646 883 Income tax provision (benefit) $2,343 $2,805 Income before income taxes consisted of the following for the years ended December 31 (in thousands): 2016 2015 Foreign $4,532 $5,067 United States 2,994 4,669 Income before income taxes $7,526 $9,736 A reconciliation of our income tax expense as compared to the tax expense calculated by applying the statutory federal tax rate to income beforeincome taxes for the years ended December 31 is as follows: 2016 2015 Computed expected income tax expense 34.0% 34.0%State income taxes, net of federal benefits 1.0% 1.7%Subpart F income adjustment 8.6% 24.5%Foreign rate differential (excluding research credit) (10.2)% (10.0)%Change in valuation allowance 0.0% (20.4)%French research and low wage credit (3.0)% (2.3)%Other, net 0.7% 1.3%Income tax expense 31.1% 28.8% 45 Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. The primary components of net deferred income tax assets at December 31 are as follows (in thousands): 2016 2015 Deferred tax assets: Tax credits $1,549 $1,602 Property and equipment 357 497 Stock compensation 557 615 French deferred assets 410 279 Bad debt reserves and inventory 774 828 Operating loss carry forwards 7 7 Other 337 672 Total deferred tax assets 3,991 4,500 Deferred tax liabilities: Excess book basis in shares of GPI-SAS $1,547 $1,603 French deferred liabilities 262 338 Intangible assets 603 379 Total deferred tax liabilities 2,412 2,320 Deferred tax assets, net $1,579 $2,180 We prospectively adopted the provisions of ASU No. 2015-17 as of December 31, 2016. The adoption of the provision caused us to reclassifycurrent deferred tax assets to noncurrent (netted within noncurrent liabilities) on our consolidated balance sheets. The prior reporting period was notretrospectively adjusted. For our investment in GPI Asia, deferred taxes are not being provided on unrepatriated foreign earnings. These earnings are considered permanentlyreinvested, since it is management’s intention to reinvest these foreign earnings in future operations. We project that we will have sufficient cash flow in theU.S. and will not need to repatriate the foreign earnings from GPI Asia to finance U.S. operations. Except for the deemed dividends under Section 956 in 2015and under Subpart F, we continue to assert that earnings from GPI Asia will be permanently reinvested. As of December 31, 2016, we had unremitted earningsof $0.4 million for GPI Asia. There were no unremitted earnings for GPI Asia at December 31, 2015. We are subject to taxation in the U.S. and various states and foreign jurisdictions. With few exceptions, the tax years 2013 through 2016 remainopen to examination under the statute of limitations by the U.S. Internal Revenue Service and various states for GPIC and GPI USA, by the French TaxAdministration for GPI SAS, and by the Government of the Macau Special Administrative Region - Financial Services Bureau for GPI Asia. In 2015, theFrench Tax Administration started an examination of GPI SAS for tax years 2013 and 2012 that is on-going. A reconciliation of the beginning and ending amounts of unrecognized tax benefits, including estimated interest and penalties, is as follows (inthousands): 2016 2015 Balance at beginning of year $241 $- Increases related to current year tax positions - 241 Foreign currency translation 17 - Balance at end of year $258 $241 All of the liability as of December 31, 2016 would affect our effective tax rate if recognized and amounts of interest and penalties are not expected tobe significant. We anticipate that the balance of the unrecognized tax benefits will be eliminated within the next twenty-four months. 46 Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Note 18. Earnings per Share (EPS) The weighted-average number of common shares outstanding used in the computation of basic and diluted earnings per share is as follows (inthousands): 2016 2015 Weighted-average number of common shares outstanding - basic 7,929 7,926 Potential dilution from equity grants 113 114 Weighted-average number of common shares outstanding - diluted 8,042 8,040 We have certain outstanding stock options to purchase common stock which have exercise prices greater than the average market price. These anti-dilutive options have been excluded from the computation of diluted net income per share. Outstanding anti-dilutive options for the years ended December31, 2016 and 2015 totaled to 38,077 and 46,500, respectively. Note 19. Related-Party Transactions We lease two manufacturing facilities totaling approximately 90,000 square feet located in San Luis Rio Colorado, Mexico, from an entitycontrolled by the family of Frank Moreno, the General Manager of GPI Mexicana. The facilities are leased through December 2018 at a monthly rent amountof $0.31 per square foot, or approximately $28,000. In 2016, Alexandre Thieffry became our Executive Vice President of Finance. Mr. Alexandre Thieffry is the son of Alain Thieffry, our ChiefFinancial Officer and Chairperson of the Board. Mr. Alexandre Thieffry served as our Controller from 2011 through 2015. Neither Mr. Moreno nor Alexandre Thieffry are directors or executive officers of the Company. Mr. Alain Thieffry is a director and executive officerof the Company. Our audit committee reviews any related party transactions involving our directors and executive officers. 47 Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure None. Item 9A. Controls and Procedures Effectiveness of Disclosure Controls and Procedures Our management, including our Chief Executive Officer (CEO) and Chief Financial Officer (CFO), has conducted an evaluation of the effectivenessof our disclosure controls and procedures pursuant to Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (Exchange Act), asof December 31, 2016. Based upon this evaluation, our CEO and CFO have concluded that, as of December 31, 2016, the end of the period covered by thisannual report on Form 10-K, our disclosure controls and procedures are effective to provide reasonable assurance that information we are required to disclosein reports under the Exchange Act is (a) recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and (b)accumulated and communicated to our management, including the CEO and CFO, to allow timely decisions regarding required disclosure. Inherent Limitations on Effectiveness of Controls There are inherent limitations to the effectiveness of any system of disclosure controls and procedures, including the possibility of human error andthe unintended or intended circumvention or overriding of the controls and procedures. The design of any system of controls is based in part on certainassumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potentialfuture conditions. Projections of any evaluation of controls effectiveness to future periods are subject to risks that controls may become inadequate becauseof changes in conditions, or that the degree of compliance with policies or procedures may deteriorate. Accordingly, even effective disclosure controls andprocedures can only provide reasonable assurance of achieving their control objectives. 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 December 31, 2016 that materially affected, or are reasonably likely to materially affect, our internal controlover financial reporting. Management’s Annual Report on Internal Control over Financial Reporting: Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in Exchange ActRules 13a-15(f) and 15d-15(f). Our internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. Our internal controlover financial reporting includes those policies and procedures that: (1)pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets; (2)provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance withaccounting principles generally accepted in the United States of America, (3)provide reasonable assurance that our receipts and expenditures are being made only in accordance with authorizations of our managementand directors; and (4)provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of our assets thatcould have a material effect on our financial statements. Under the supervision of our CEO and CFO, our management assessed the effectiveness of our internal control over financial reporting as ofDecember 31, 2016 based on the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control-Integrated Framework (1992). Based on this assessment, management concluded that, as of December 31, 2016, our internal control over financial reportingis effective. Management reviewed this assessment with the Audit Committee of our Board of Directors. 48 Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. COSO updated the 1992 framework, which was released May 14, 2013, to Internal Control – Integrated Framework, and now considers the originalframework superseded, although the SEC hasn’t provided a formal transition date. Item 9B. Other Information None. PART III This Part III incorporates certain information from our definitive proxy statement for our 2017 annual meeting of stockholders (Proxy Statement) tobe filed with the SEC not later than 120 days after the end of our fiscal year covered by this annual report on Form 10-K. Item 10. Directors, Executive Officers, and Corporate Governance The information required by this Item is incorporated by reference to the Proxy Statement including the sections entitled “Nominees for Election ofDirectors,” “Board of Directors and Committee of the Board,” “Section 16(a) Beneficial Ownership Reporting Compliance,” and “Executive Officers.” Item 11. Executive Compensation The information required by this Item is incorporated by reference to the Proxy Statement including the sections entitled “ExecutiveCompensation,” “Director Compensation Table,” “Non-Employee Director Stock Options,” and “Non-Employee Director Cash Compensation.” Item 12. Security Ownership of Certain Beneficial Owners and Management and Securities Authorized for Issuance under Equity Compensation Plans The information required by this Item is incorporated by reference to the Proxy Statement including the sections entitled “Security Ownership ofManagement and Other Beneficial Owners” and “Equity Compensation Plan Information.” Item 13. Certain Relationships and Related Transactions and Director Independence The information required by this Item is incorporated by reference to the Proxy Statement including the sections entitled “Board of Directors andCommittees of the Board.” Item 14. Principal Accounting Fees and Services The information required by this Item is incorporated by reference to the Proxy Statement including the sections entitled “Fees Paid to IndependentPublic Accounting Firm” and “Pre-Approval Policies and Procedures.” 49 Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. PART IVItem 15. Exhibits, Financial Statement Schedules (a)(1) Financial Statements Included at Item 8. Financial Statements and Supplementary Data of this report: Consolidated Balance Sheets at December 31, 2016 and 2015 Consolidated Statements of Income for the Years Ended December 31, 2016 and 2015 Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2016 and 2015 Consolidated Statements of Stockholders’ Equity for the years ended December 31, 2016 and 2015 Consolidated Statements of Cash Flows for the Years Ended December 31, 2016 and 2015 Notes to Consolidated Financial Statements (a)(2) and (c) Financial Statement Schedules All required schedules are omitted because of the absence of conditions under which they are required or because the required informationis given in the consolidated financial statements or notes thereto included at Item 8. Financial Statements and Supplementary Data. (a)(3) and (b) Exhibits The exhibits listed in the Index of Exhibits following the signature pages of this annual report are filed with, or incorporated by referencein, this annual report Item 16. Form 10-K Summary Not required. Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed onits behalf by the undersigned thereunto duly authorized. GAMING PARTNERSINTERNATIONAL CORPORATION Date: March 24, 2017By:/s/ Gregory S. GronauGregory S. GronauPresident and Chief Executive Officer Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of theregistrant and in the capacities and on the dates indicated. Date: March 24, 2017By:/s/ Gregory S. Gronau Gregory S. Gronau President, Chief Executive Officer, and Director (Principal Executive Officer) Date: March 24, 2017By:/s/ Alain Thieffry Alain Thieffry Chief Financial Officer, and Chairperson of the Board (PrincipalFinancial Officer and Principal Accounting Officer) Date: March 24, 2017By:/s/ Eric P. Endy Eric P. Endy Director Date: March 24, 2017By:/s/ Martin A. Berkowitz Martin A. Berkowitz Director Date: March 24, 2017By:/s/ Charles R. Henry Charles R. Henry Director Date: March 24, 2017By:/s/ Robert J. Kelly Robert J. Kelly Director Date: March 24, 2017By:/s/ Jean-Francois Lendais Jean-Francois Lendais Director Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Index of Exhibits Incorporated by Reference ToNo. Exhibit Description Filed with this10-K Form File No. Date Filed2.01* Agreement and Plan of Exchange and Stock Purchase Agreement,dated April 11, 2002, between Registrant and EtablissementsBourgogne et Grasset SA, as amended by the First Amendment thereto,dated May 13, 2002 DEF 14A 000-23588 8/09/20022.02* Stock Purchase Agreement, dated April 11, 2002, among Eric P. Endy,The Paul S. Endy, Jr. Living Trust, the other Endy family trusts listedon the signature pages thereto, and the stockholders of EtablissementsBourgogne et Grasset SA listed on the signature pages thereto DEF 14A 000-23588 8/09/20022.03* Asset Purchase Agreement, dated July 1, 2014, among Registrant andGemGroup Inc., Gemaco Inc., GemAsia LLC, GemTech LLC, theshareholders of GemGroup Inc., and Danny R. Carpenter, as Agent 8-K 000-23588 7/07/20142.04* Asset Purchase Agreement, dated May 11, 2016, among Registrant,Entertainment Gaming Asia Inc. and Dolphin Products Limited 10-Q 000-23588 8/11/20163.01 Registrant's Amended and Restated Articles of Incorporation, asamended 10-K 000-23588 3/24/20163.02 Registrant's Amended and Restated Bylaws 8-K 000-23588 12/28/20074.01 Specimen Certificate for Registrant's Common Stock 10-K 000-23588 5/15/200710.01+ Registrant's 1994 Directors’ Stock Option Plan, as amended DEF 14A 000-23588 4/09/200810.02+ Employment Agreement, dated October 28, 2008, between GregoryGronau and Registrant 8-K 000-23588 10/28/200810.03+ Employment Agreement Amendment of 2017 dated March 22, 2017,between Gregory Gronau and Registrant X 10.04+ Stock Option Agreement, dated May 6, 2009, between Gregory S.Gronau and Registrant DEF 14A 000-23588 4/6/200910.05 Lease Agreement, dated December 16, 2008, between CopropiedadArte Y Diseno, as lessor, and GPI Mexicana, S.A. de C.V., as lessee 10-K 000-23588 3/30/200910.06 Lease Agreement dated January 1, 2014, between Copropiedad Arte YDiseno, as lessor, and GPI Mexicana, S.A. de C.V., as lessee 10-K 000-23588 3/24/201610.07 Demand Line of Credit Agreement, dated June 26, 2014, betweenGaming Partners International USA, Inc. and HSBC Bank USA,National Association 8-K 000-23588 7/07/201410.08 Demand Note, dated June 26, 2014, by Gaming Partners InternationalUSA, Inc. payable to the order of HSBC Bank USA, NationalAssociation 8-K 000-23588 7/07/201410.09 Security Agreement, dated June 26, 2014, between Gaming PartnersInternational USA, Inc. and HSBC Bank USA, National Association 8-K 000-23588 7/07/201410.10 Unlimited Guaranty, dated June 26, 2014 by Registrant for the benefitof HSBC Bank USA, National Association 8-K 000-23588 7/07/201410.11 Credit Agreement, dated June 26, 2015, between Registrant andNevada State Bank 8-K 000-23588 7/02/201510.12 Pledge and Security Agreement and Irrevocable Proxy, dated June 26,2015, among Registrant, Gaming Partners International USA, Inc. andNevada State Bank 8-K 000-23588 7/02/2015 Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. 10.13 Guaranty, dated June 26, 2015, by Gaming Partners International USA,Inc. and Gaming Partners International Asia Limited in favor ofNevada State Bank 8-K 000-23588 7/02/201521.01 List of Subsidiaries 10-K 000-23588 3/29/201123.01 Consent of Moss Adams LLP X 31.01 Certification of Registrant's Chief Executive Officer, as required bySection 302 of the Sarbanes-Oxley Act of 2002 X 31.02 Certification of Registrant's Chief Financial Officer, as required bySection 302 of the Sarbanes-Oxley Act of 2002 X 32.01** Certification of Registrant's Chief Executive Officer and ChiefFinancial Officer, as required by Section 906 of the Sarbanes-OxleyAct of 2002 X 99.01 Government Gaming Regulation X 101.INS XBRL Instance X 101.SCH XBRL Taxonomy Extension Schema X 101.CAL XBRL Taxonomy Extension Calculation X 101.DEF XBRL Taxonomy Extension Definition X 101.LAB XBRL Taxonomy Extension Labels X 101.PRE XBRL Taxonomy Extension Presentation X +Management contract or compensatory plan or arrangement*The schedules and exhibits to this document have been omitted from this filing pursuant to Item 601(b)(2) of Regulation S-K. Registrant will furnishcopies of any annexes or schedules to the Securities and Exchange Commission upon request.**This exhibit is intended to be furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, asamended, or otherwise. Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. EXHIBIT 10.03 EMPLOYMENT AGREEMENT AMENDMENT OF 2017 This EMPLOYMENT AGREEMENT AMENDMENT OF 2017, dated 22 March 2017, shall amend the EMPLOYMENT AGREEMENT, datedas of October 28, 2008 between Gaming Partners International Corporation, a Nevada corporation (the “Company”), and Gregory Gronau (“Executive”), asfollows: 3. Compensation; Expenses.(a) Executive shall be paid an annual salary (the “Salary”) in the amount of Three Hundred and Fifty Thousand Dollars ($350,000.00), in accordance withthe executive payroll schedule in effect at the Company’s principal office from time to time. (b) As Chief Executive Officer, Executive may receive a bonus determined by the Board of Directors in its sole discretion based on Executive’s achievingobjectives for that year to be specified by the Board of Directors prior to the start of each calendar year after consultation with Executive. Payment of thebonus, if any, shall be made on March 31 following the end of each such calendar year; provided that if the Company’s audited financial statements for thatcalendar year are not yet final on that date, then the payment shall be made within ten (10) days of the date such audited financial statements become final.Executive shall only be entitled to a bonus pursuant to this Section 3(b) if Executive remains in the Company’s employ on the last day of the calendar year inquestion; provided that if Executive’s employment with the Company terminates for any reason other than Cause or Voluntary Termination (each ashereinafter defined), Executive or Executive’s estate shall be entitled to receive a prorated portion of the bonus. Amounts payable pursuant to thisSection 3(b) shall be subject to appropriate tax withholding, at the rate applicable to payments of more than two weeks of Salary. (f) All compensation under Section 3 is subject to increases at the sole discretion of the Board of Directors. 6. Compensation Upon Termination or During Incapacity.(c) If Executive’s employment with the Company is terminated by the Company pursuant to Section 5(e), the Company shall pay to the Executive theSalary through the Date of Termination. In addition, if termination pursuant to Section 5(e) occurs, the Company shall continue to pay the Executive theSalary at the rate in effect on the Date of Termination for a period equal to twelve (12) months. The obligations of the Company under this Section 6(c) aresubject to execution and delivery by the Executive of a severance agreement and release in form and substance satisfactory to the Company. The parties agree that, except as expressly amended above, the Employment Agreement remains in full force and effect in accordance with its terms. ThisEmployment Agreement Amendment of 2017, together with the Employment Agreement, reflects the entire agreement of the parties with respect to suchsubject matter. IN WITNESS, the Company has caused this Agreement to be executed by its duly authorized officer or representative, and Executive has signed thisAgreement, as of the day and year first written above. GAMING PARTNERS INTERNATIONAL CORPORATION /s/ Alain Thieffry Alain Thieffry Chief Financial Officer, and Chairperson of the Board /s/ Gregory S. Gronau Gregory S. GronauPresident, Chief Executive Officer, and Director Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. EXHIBIT 23.01 CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM We consent to the incorporation by reference in Registration Statement Nos. 33-84726, 333-114019, 333-152186, and 333-159217 of GamingPartners International Corporation and Subsidiaries on Form S-8, of our report dated March 24, 2017 (which expresses an unqualified opinion and includesan explanatory paragraph relating to the adoption of Accounting Standards Update 2015-17, Balance Sheet Classification of Deferred Taxes), appearing inthis Annual Report on Form 10-K of Gaming Partners International Corporation and Subsidiaries for the year ended December 31, 2016. /s/ Moss Adams LLP San Diego, CAMarch 24, 2017 Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. EXHIBIT 31.01 CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICERSection 302 Certification I, Gregory S. Gronau, certify that: 1. I have reviewed this Annual Report on Form 10-K 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 necessaryto make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the periodcovered by this report; 3. Based on my knowledge, the financial statements and other financial information included in this report, fairly present in allmaterial 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 officer and I are responsible for establishing and maintaining disclosure controls and procedures (asdefined 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 underour supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to usby 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 bedesigned under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation offinancial 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 ourconclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based onsuch evaluation; and d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during theregistrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or isreasonably likely to materially affect, the registrant’s internal control over financial reporting. 5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financialreporting, 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 reportingwhich are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in theregistrant’s internal control over financial reporting. Date: March 24, 2017By:/s/ Gregory S. Gronau Gregory S. Gronau President and Chief Executive Officer Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. EXHIBIT 31.02 CERTIFICATION OF PRINCIPAL FINANCIAL AND ACCOUNTING OFFICERSection 302 Certification I, Alain Thieffry, certify that: 1. I have reviewed this Annual Report on Form 10-K 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 necessaryto make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the periodcovered by this report; 3. Based on my knowledge, the financial statements and other financial information included in this report, fairly present in allmaterial 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 officer and I are responsible for establishing and maintaining disclosure controls and procedures (asdefined 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 underour supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to usby 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 bedesigned under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation offinancial 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 ourconclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based onsuch evaluation; and d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during theregistrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or isreasonably likely to materially affect, the registrant’s internal control over financial reporting. 5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financialreporting, 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 reportingwhich are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in theregistrant’s internal control over financial reporting. Date: March 24, 2017By:/s/ Alain Thieffry Alain Thieffry Chief Financial Officer, and Chairperson of the Board Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. EXHIBIT 32.01 CERTIFICATION PURSUANT TO18 U.S.C. SECTION 1350,AS ADOPTED PURSUANT TOSECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 In connection with the Annual Report on Form 10-K of Gaming Partners International Corporation (the “Company”) for the year endedDecember 31, 2016, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Gregory S. Gronau, as Chief Executive Officerof the Company and Alain Thieffry, 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 (15 U.S.C. 78m(a)or 78o(d)); and 2. The information contained in the Report fairly presents, in all material respects, the consolidated financial condition and results ofoperations of the Company. Gaming Partners International Corporation Date: March 24, 2017By:/s/ Gregory S. Gronau Gregory S. Gronau President and Chief Executive Officer Principal Executive Officer Date: March 24, 2017By:/s/ Alain Thieffry Alain Thieffry Chief Financial Officer, and Chairperson of the Board (Principal Financial Officer and Principal Accounting Officer) Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. EXHIBIT 99.01 Government Gaming Regulations Overview Gaming Partners International Corporation (“GPIC,” “we,” “us,” or “our”) are subject to a wide range of complex gaming laws and regulations inover 175 jurisdictions, both foreign and domestic, in which we are licensed or have applications pending. Jurisdictions require us to be licensed, our keypersonnel to be found suitable, qualified or licensed, and our products to be reviewed and approved before placement. Additionally, gaming laws andregulations of most jurisdictions provide that beneficial owners of 5% or more of our common stock are subject to reporting procedures and may be subject tolicensure that includes suitability investigations and submission of personal and financial information as required, unless the owner is eligible for andobtains an exemption or waiver. Under certain circumstances, an “Institutional Investor,” as such term is defined by certain gaming jurisdictions' statutes orregulations, who acquires more than 5%, may apply for a waiver of the suitability requirement. Generally, gaming jurisdictions may permit an InstitutionalInvestor to hold up to 25% upon a showing that it meets the jurisdiction's definition of an “Institutional Investor” and certification as to its passiveinvestment intent. Furthermore, most jurisdictions have ongoing reporting requirements for certain transactions and are concerned with our accounting practices,internal controls, business relationships and the fair operation of our products. Gaming regulatory requirements vary from jurisdiction to jurisdiction andlicensing, approvals and processes related to findings of suitability, qualifications or licenses, our products, key personnel and certain shareholders can belengthy and expensive. General regulatory licensing and approvals We intend to maintain our existing licenses and to seek the necessary licenses, approvals, qualifications and findings of suitability for us, ourproducts and our management personnel in new jurisdictions where we anticipate sales or leasing opportunities. However, there can be no assurance that newlicenses, approvals, qualifications or findings of suitability will be obtained or that our existing licenses will be renewed or will not be revoked, suspended orconditioned. If a license, approval, qualification or finding of suitability is required by a regulatory authority and we fail to seek or do not receive thenecessary license, qualification or finding of suitability, then we may be prohibited from distributing our products for use in the respective jurisdiction ormay be required to provide our products through other licensed entities at a reduced profit to us. There can also be no assurance that we will be able to obtainthe necessary approvals for our products as they are developed. In addition, changes in legislation or in judicial or regulatory interpretations could occurwhich could adversely affect us. We are currently subject to the licensing and/or regulatory control of gaming authorities in over 200 jurisdictions. Due to variations in jurisdictionalregulatory transaction reporting, as well as manufacturer, distributor and product licensing requirements, only the specifics of Nevada and New Jersey gaminglaw requirements are provided below as being representative of gaming regulation to which we are subject in other jurisdictions. Nevada Gaming Regulation The manufacture and distribution of gaming equipment in Nevada are subject to extensive state and local regulation. Our operations are subject tothe licensing and regulatory control of the Nevada Gaming Commission, the Nevada Gaming Control Board and various local regulatory agencies, or theNevada gaming authorities, due to our prior manufacture of roulette wheels, which are considered gaming devices. In the November 18, 2004 Order from the Nevada Gaming Commission to GPIC and Gaming Partners International USA, Inc. (GPIC USA), GPIC wasexempted from registration as a publicly-traded corporation and GPI USA and Gaming Partners International SAS (GPI SAS) were each licensed asmanufacturers and distributors strictly limited to the manufacture, distribution and service of roulette wheels in Nevada, and subject to administrativeapproval prior to the distribution of any roulette wheel and further subject to specified conditions set forth in the Order, including but not limited to the filingof periodic reports with and notifications to Nevada gaming authorities. The result of this Order is to grant GPI USA and GPI SAS transactional waivers so thatthey may manufacture roulette wheels for sale to Nevada casino licensees. Effective August 30, 2006, the approvals were expanded by the Nevada gaming authorities to permit GPI USA to sell GPI SAS roulette wheelsoutside of Nevada. The waivers granted were specifically found by the Nevada Gaming Commission to be consistent with the policies set forth for in theNevada gaming laws. These waivers may, however, be withdrawn by the Nevada Gaming Control Board for any cause deemed reasonable. Upon suchwithdrawal, GPIC would be subject to full registration and licensing. GPI SAS surrendered its license in Nevada as GPI SAS roulette wheels are no longerbeing sold in Nevada nor is there any reason to transport them through the Nevada. Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. On November 17, 2016, the Nevada Gaming Commission approved amendments to GPIC and GPI USA’s Order to confirm that GPI USA is permittedto manufacture/distribute associated equipment in addition to its previously-granted licenses/approvals. The Nevada Gaming Commission may require anyone having a material relationship or involvement with GPIC or GPI USA to be found suitable orlicensed. Additionally, the Nevada Gaming Commission may require an application for a finding of suitability from any officer, director, employee,shareholder of GPIC or any officer, director or employee of GPI USA if the Nevada Gaming Commission determines that Nevada policies regarding gamingwould be served by such action. The applicant is required to pay all costs of such investigation. Any person who fails or refuses to apply for a finding of suitability or a license within 30 days after being directed to do so by the Nevada GamingCommission may be found unsuitable based solely on such failure or refusal. Any person found unsuitable and who holds, directly or indirectly, any recordor beneficial ownership of the equity or debt security beyond such period of time prescribed by the Nevada Gaming Commission may be violation of Nevadalaw. Any change in control of GPIC or GPI USA through merger, consolidation, acquisition of assets, management or consulting agreements, or any formof takeover cannot occur without prior approval by the Nevada Gaming Commission. New Jersey Gaming Regulation GPIC’s subsidiaries are currently required to be licensed under the New Jersey Casino Control Act, or the New Jersey Act, as casino service industriesqualified to manufacture and sell gaming-related products to casinos in New Jersey. As part of such licensure, parent companies, holding companies andcertain officers and directors of the companies are required to be found suitable by the New Jersey Casino Control Commission, the New Jersey Commissionor the Division of Gaming Enforcement. The sale and distribution of gaming equipment to casinos in New Jersey is also subject to the New Jersey Act and theregulations promulgated thereunder by the New Jersey Commission. The New Jersey Commission has broad discretion in promulgating and interpretingregulations under the New Jersey Act. Amendments and supplements to the New Jersey Act, if any, may be of a material nature, and accordingly mayadversely affect the ability of a company or its employees to obtain any required licenses, permits and approvals from the New Jersey Commission, or anyrenewals thereof. The current regulations govern licensing requirements, standards for qualification, persons required to be qualified, disqualification criteria,competition, investigation of supplementary information, duration of licenses, record keeping, causes for suspension, standards for renewals or revocation oflicenses, equal employment opportunity requirements, fees and exemptions. In deciding to grant a license, the New Jersey Commission may consider, amongother things, the financial stability, integrity, responsibility, good character, and reputation for honesty, business ability and experience of the applicant andits directors, officers, management and supervisory personnel, principal employees and stockholders as well as the adequacy of the financial resources of theapplicant. New Jersey licenses are granted for a period of three or four years, depending on the length of time a company has been licensed, and if they arerenewable. The New Jersey Commission may impose such conditions upon licensing, as it deems appropriate. These include the ability of the New JerseyCommission to require the applicant or licensee to report the names of all of its stockholders as well as the ability to require any stockholders whom the NewJersey Commission finds not qualified to dispose of the stock, not receive dividends, not exercise any rights conferred by the shares, nor receive anyremuneration from the licensee for services rendered or otherwise. Failure of such stockholder to dispose of such stockholder’s stock could result in the loss ofthe license. Licenses are also subject to suspension, revocation or refusal for sufficient cause, including the violation of any law. In addition, licensees arealso subject to monetary penalties for violations of the New Jersey Act or the regulations of the New Jersey Commission. Other Gaming Jurisdictions In addition to Nevada and New Jersey, our subsidiaries are currently licensed in a number of other jurisdictions. Although the regulations in thesejurisdictions are not identical to the states of Nevada or New Jersey, their material attributes are substantially similar, and are summarized below. Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. The manufacture, sale and distribution of gaming supplies in each jurisdiction are subject to various state, county and/or municipal laws, regulationsand ordinances, which are administered by the relevant regulatory agency or agencies in that jurisdiction. These laws, regulations and ordinances primarilyconcern the responsibility, financial stability and character of gaming supply and equipment owners, distributors, sellers and operators, as well as personsfinancially interested or involved in gaming or liquor operations. In many jurisdictions, selling or distributing gaming supplies may not be conducted unlessproper licenses are obtained. An application for a license may be denied for any cause which the gaming regulators deem reasonable. In order to ensure theintegrity of manufacturers and distributors of gaming supplies, most jurisdictions have the authority to conduct background investigations of a company, itskey personnel and significant stockholders. The gaming regulators may at any time revoke, suspend, condition, limit or restrict a license for any causedeemed reasonable by the gaming regulators. Fines for violation of gaming laws or regulations may be levied against the holder of a license and personsinvolved. Our subsidiaries and their respective key personnel have obtained all licenses necessary for the conduct of their respective business in thejurisdictions in which they sell and distribute gaming equipment and supplies. Suspension or revocation of such licenses could have a material adverse effecton our operations. Federal Gaming Registration The Federal Gambling Devices Act of 1962 (Federal Act) makes it unlawful for a person to manufacture, transport, or receive gaming machines,gaming devices (including roulette wheels) or components across interstate lines unless that person has first registered with the Attorney General of theUnited States Department of Justice. In addition, the Federal Act imposes gambling device identification and record keeping requirements. Violation of theFederal Act may result in seizure and forfeiture of the equipment, as well as other penalties. Our subsidiaries, which are involved in the manufacture andtransportation of roulette wheels, are required to register annually. Native American Gaming Regulation Gaming on Native American lands is governed by federal law, tribal-state compacts, and tribal gaming regulations. The Indian Gaming RegulatoryAct of 1988 (IGRA) provides the framework for federal and state control over all gaming on Native American lands and is administered by the NationalIndian Gaming Commission and the Secretary of the United States Department of the Interior. The IGRA requires that a tribe and the state in which the tribe islocated enter into a written agreement, a tribal-state compact, which governs the terms of the gaming activities. Tribal-state compacts vary from state-to-stateand in many cases require equipment manufacturers and/or distributors to meet ongoing registration and licensing requirements. In addition, tribal gamingcommissions have been established by many Native American tribes to regulate gaming-related activity on Indian lands. Our subsidiaries manufacture anddistribute gaming supplies to Native American tribes who have negotiated compacts with their respective states and have received federal approval.Currently, GPI USA is authorized to sell products to Native American casinos in eighteen states. International Gaming Regulation Certain foreign countries permit the importation, sale and operation of gaming supplies in casino and non-casino environments. Certainjurisdictions require the licensing of manufacturers and distributors of gaming supplies. We and our subsidiaries manufacture and/or distribute gamingsupplies to various international markets. We have obtained the required licenses to manufacture and distribute our products in the various foreignjurisdictions where we do business. While the regulatory requirements vary from jurisdiction to jurisdiction, most require licenses, permits, findings of suitability, documentation ofqualification including evidence of financial stability and/or other required approvals for companies who manufacture and distribute gaming equipment, aswell as the individual suitability of officers, directors, major stockholders and key employees. Under the various gaming regulations, key personnel generallyinclude the principal stockholders, corporate officers and directors of a corporation and its subsidiaries. Laws of the various gaming regulatory agencies aregenerally intended to protect the public and ensure that gaming related activity is conducted honestly, competitively, and free of corruption. Product approvals Some of our products are subject to extensive testing and reviews by multiple state, jurisdictional or third party laboratories. The time required forproduct testing can be extensive and is subject to a wide range of formal and informal standards that can lead to great uncertainty as to the length of theregulatory approval process. Additionally, product testing is subject to changing standards, as a result of which, we may be required to upgrade or revise ourproducts. Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Source: Gaming Partners International CORP, 10-K, March 24, 2017Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.

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