Dice Gaming Seating Playing Cards Table Gaming Layouts
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  In 1988, the Company began manufacturing and selling its own line of paper casino playing cards. A deck of cards sells to casinos for between $.85 and $2.00 and, based on casino industry practices, is generally replaced every eight hours or less. A casino typically enters into a one-year purchase commitment with a supplier to supply cards at regular intervals, generally monthly. Casinos often purchase cards from more than one supplier, as casino floor managers often have a preference for a particular type of card.
   
  The Company believes that it is the fourth largest casino card manufacturer in the United States, currently providing cards to approximately 6% of casinos operating in the United States. Given the Company's relatively low market share and its established distribution system for table game supplies, management believes that playing cards represent a significant opportunity for the Company.
   
  The Company produces its playing cards in its Las Vegas and San Luis facilities. The ompany is currently completing the purchase of additional manufacturing space in San Luis and is in the process of purchasing the equipment necessary to expand its playing card capacity to 25 million decks per year, up from the Company's current annual production capacity of 15 million decks. Expanded playing card production capacity will permit management to aggressively seek new playing card business from its existing casino customer base, from other casinos and from customers outside of the casino industry.
   
  The Company also distributes plastic playing cards which are used predominantly in California card clubs. Traditionally, the plastic playing cards are preferred by the California card room market while the paper cards are generally preferred by the traditional hotel-casino markets. The Company is currently exploring the feasibility of manufacturing its own line of plastic playing cards.
   
  In January 1994, Paul-Son began to market commemorative chips more aggressively. Management of Paul-Son and its casino customers determined that casino patrons often retained casino chips which commemorated certain types of events such as title boxing matches, significant anniversaries, and premier entertainment events. Casinos benefit to the extent that casino chips purchased are not redeemed, thereby resulting in added cash flow to the casino. Paul-Son believes that promoting such additional benefits to casinos has assisted the Company in sales of new racks of primary casino chips. The Company is also pursuing opportunities to sell commemorative chips outside of the gaming industry.