Galaxy Gaming (GLXZ) 2012 Q3 Financial Review

Third Quarter 2012 Earnings Call

Robert Saucier, CEOGary Vecchiarelli, CFO

Financial Results

Se-ries1

$0

$400

$800

$1,200

$1,600

$2,000

754 736 806 783 781 749 734

1,421

1,646 1,790

1,874

Quarterly Revenues

Q12010

Q2 2010

Q3 2010

Q4 2010

Q1 2011

Q2 2011

Q3 2011

Q4 2011

Q1 2012

Q2 2012

Q3 2012

Se-ries1

$0

$400

$800

$1,200

$1,600

$2,000

754 736 806 783 781

749 734

1,421 1,646

1,790 1,874

686 602 606748 723

802 827

846

1103 1033 995

Revenues vs. SG&A ExpensesRevenues SG&A

Q12010

Q2 2010

Q3 2010

Q4 2010

Q1 2011

Q2 2011

Q3 2011

Q4 2011

Q1 2012

Q2 2012

Q3 2012

Series1

($250)

$0

$250

$500

$750

$1,000

($71)

$56

($76) ($69) ($35)($147)

($192)

$476

$460

$632

$777

Quarterly EBITDA (Non-GAAP)

Q12010

Q2 2010

Q3 2010

Q4 2010

Q1 2011

Q2 2011

Q3 2011

Q4 2011

Q1 2012

Q2 2012

Q3 2012

Series1

($250)

($150)

($50)

$50

$150

$250

($100)

$21

$44

($101)

($66)

($176)($221)

($10)

($171)

$62

$129

Quarterly Net Profit (Loss)

Q12010

Q2 2010

Q3 2010

Q4 2010

Q1 2011

Q2 2011

Q3 2011

Q4 2011

Q1 2012

Q2 2012

Q3 2012

($500)

$500

$1,500

$2,500

$3,500

$4,500

$5,500

Gross Revenue Gross Profit EBITDA Net Profit/(Loss)

YTD (9 Months) – 2011 vs 2012

Performance Metrics

Q3 - 2011 Q3 - 2012

Units in ServiceAverage

Quarterly Revenue

Units in Service

Average Quarterly Revenue

Proprietary Table Games

Premium Games 313 $837 489 $1,313

Side Bets 1,764 $218 2,774 $386

Sub-Total 2,077 $311 3,263 $525

Enhanced Table Systems

Bonus Jackpot System 123 $592 94 $725

MEGA-Share - - 7 $485

Sub-Total 123 $592 101 $708

e-Tables (Seats) 30 $1,810 55 $1,298

TOTAL 2,230 $347 3,419 $543

*impact of ETS Growth is for illustration purposes only

Composition of Revenue – Growth vs Legacy

Note: Based on Q3 2012 Recurring Revenues of $1,857k

250

500

750

1,000

1,250

272 408

571

771

964

1,157

288

Q1 632

Q2747

Q3858

21+3 Placements (U.S.)

Oct-11 YE 2012 YE 2013 YE 2014 YE 2015 YE 2016

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021$0

$4,000,000

$8,000,000

$12,000,000

$16,000,000

$20,000,000

NET CASH FLOW - PTG PRODUCT REVENUES - DEBT OBLIGATIONForecasted Revenues & Cash Flow vs Debt Obligation (in millions)

• Balance is below $20m• Structure is non-toxic• Options to pay in GBP• Can change minimum

payment if cash flow decreases

Global Gaming Expo 2012 (The Gaming Industry’s International Showcase)

Global Gaming Expo 2012 (The Gaming Industry’s International Showcase)

• Return of two major clients (12 casinos total) . . . . . . $500,000

• Approval in additional gaming jurisdiction . . . . . . . . . $500,000 • Inter-Casino Jackpot System installations . . . . . . . . . . $200,000

Short-Term Growth Prospects

AnticipatedEvent

ApproximateAnnual Revenue

• Expanded placement of Table Game Content

• Concentration on Bonus Jackpot System Installations / Conversions

• New TableMAX Release / Installations

• Targeted Acquisitions

Mid-Term Growth Prospects

Potential Event

Sherron Associates (GLXZ defending)• Lawsuit filed in 2008 with potential claims approaching $2M• Case settled in October 2011 for $525K (GLXZ - $150K / our CEO - $375K)• All obligations completed on or about November 5, 2012

Reel Games (GLXZ defending)• Lawsuit filed November 2011• Lawsuit dismissed with prejudice in November 2012• No compensation paid to plaintiffs

UNAX Gaming (UNAX defending)• Lawsuit filed March 2012 claiming patent infringement• Case settled in May 2012• We obtained the UNAX’s table game business and approximately $45K in cash.

 Bank of America (BofA / GLXZ Cross-Suit)• Lawsuit filed in October 2012 claiming fraudulent transfer.• Counter-suit filed claiming (1) Abuse of Process; (2) Slander of Business; (3) Detrimental Promissory Reliance

Litigation Update

Q & A