Gaming America Mar/Apr 2021 by Gambling Insider

GamingAmerica.com

Mar/Apr 2021

Bright future Shedding light on California's growth in tribal gaming

• TEKKORP'S MATT DAVEY ON INVESTMENT

• MARCH MADNESS AND THE NCPG

• USHERING IN A LAS VEGAS REVIVAL

• SPORTS BETTING'S ONGOING SURGE

1 GAMINGAMERICA

COO, EDITOR IN CHIEF Julian Perry EDITOR Carl Friedmann Carl.Friedmann@gamblinginsider.com Tel: +44 (0) 207 739 9908

EDITOR’S LETTER

SENIOR STAFF WRITER Tim Poole Tim.Poole@gamblinginsider.com STAFF WRITERS Iqbal Johal Iqbal.Johal@gamblinginsider.com Ezra Amacher Ezra.Amacher@gamingamerica.com Peter Lynch Peter.Lynch@gamblinginsider.com LEAD DESIGNER Laura Fogar DESIGNER Olesya Adamska DESIGN ASSISTANTS Radostina Mihaylova, Aleksandra Cakikj, Inna Shtereva MARKETING & EVENTS MANAGER Mariya Savova FINANCE & ADMINISTRATION ASSISTANT Dalia Ambrazaite IT MANAGER Tom Powling COMMERCIAL DIRECTOR Deepak Malkani Deepak.Malkani@gamblinginsider.com Tel: +44 (0)20 7729 6279 US BUSINESS DEVELOPMENT MANAGER Aaron Harvey Aaron.Harvey@playerspublishing.com Tel: +1 702 425 7818 US ACCOUNT MANAGER Erica Clark Erica.Clark@playerspublishing.com Tel: +1 702 430 1912 EVENTS SALES MANAGER Ryan Horwood Ryan@globalgamingawards.com +44 (0) 208 638 7610 SENIOR ACCOUNT MANAGER William Aderele William.Aderele@gamblinginsider.com Tel: +44 (0)20 7739 2062 ACCOUNT MANAGERS Michael Juqula Michael.Juqula@gamblinginsider.com Tel: +44 (0)20 3487 0498 Clive Waite Clive.Waite@gamblinginsider.com Tel: +44 (0)20 7729 0643 Nitesh Patel Nitesh.Patel@gamblinginsider.com Tel: +44 (0) 207 739 5768 Martin Dilleigh Martin.Dilleigh@gamblinginsider.com Tel: +44 (0) 203 435 5628 SENIOR ACCOUNT EXECUTIVE Sam Ford Samuel.Ford@GamblingInsider.com Tel: +44 (0) 207 739 9918 CREDIT MANAGER Rachel Voit WITH THANKS TO: Tina Hodges, Mike Trask, Andrew Burke, Matthew Mingrone, Matt Hosman, David Little, Michael Pace, Jeff Silver, Patrick Sullivan, Paul Burns, Matt Davey, Jimmy Kowalski, Matthew Morgan, Oliver Lovat, Keith Whyte, Bryan Bennett, Kathleen McLaughlin, Brandon Walker, Neale Deeley, David Wang

JULIAN PERRY, COO, Editor in Chief

CARL FRIEDMANN, Editor

Americans have a lot on their plate these days. Heavy weather, pandemic fatigue and political chips waiting to fall where they may following the election unrest are in steady headline rotation. While these events affect gaming in a variety of ways, this edition of Gaming America focuses on the state of Tribal gaming across the country and its profound impact and importance to the industry. There’s a particular nod to the progress being made in California, with, among other features, talks with Matt Hosman, Kambi’s US director, and Matthew Mingrone, general manager of Central Valley's Eagle Mountain Casino. But we can’t ignore that one of the biggest stories from Las Vegas this year is that, despite the run of play of suspended conventions, reduced visitor numbers and mid-week closures, major properties are due to open on the Strip, and one of them is the highly-anticipated Virgin Hotel where Tribal gaming operator Mohegan Sun will run the casino. Oliver Lovat of the Denstone Group asks if this kind of strong statement to challenge the established order will set a tone of possibilities in the years to come. If successful, he says, it will help to usher in “a new wave of credible ownership and unprecedented investment in Las Vegas, with much of Tribal and regional gaming watching and waiting to see what happens.” Back out West, Lovat adds, California Tribes like the Manuel Band of Mission Indians and the Pechanga Tribe of Luiseno Indians could follow the Seminoles’ Hard Rock to expand their footprint. And lest we forget that, looking east (but not that East), Oklahoma’s WinStar, which the Chickasaw Nation operates, is the largest casino in the world. “Native American Tribes are the quiet giants in hospitality,” adds Lovat and it’s easy to see why with all the resources, experience, established customer databases and available capital at hand. OIGA chairman Matthew Morgan also says that the new Biden administration bodes well for Tribal gaming, seeing as the President hails from gambling-friendly Delaware. “We are hopeful that the increased urgency of the Biden administration regarding the vaccine rollout and COVID-19 response will lead to our industry and gaming facilities returning to doing business in a more normal manner and at more normal occupancy levels,” he says. These are equal parts fascinating, nerve-racking and exciting times no matter your perspective, but Tribal is an area worth paying particular attention to with all its potential, and actual, success in play.

CONTRIBUTING THIS ISSUE

Gaming America magazine ISSN 2632-766X Produced and published by Players Publishing Ltd All material is strictly copyrighted and all rights reserved. Reproduction without permission is forbidden. Every care is taken in compiling the contents of Gambling Insider but we assume no responsibility for the effects arising therefrom. The views expressed are not necessarily those of the publisher.

MATTHEW MINGRONE

GM, Eagle Mountain Casino

MATTHEW MORGAN

Chairman, OIGA

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CONTENTS

FROM THE TOP

Eric Cunningham, training and marketing manager, explains the benefits of cashless gaming.

With single-event sports wagering set to be legalized in Canada, Tim Poole assesses the anticipation that’s building up.

SKIN IN THE GAME

HUDDLE: WHAT IN THE WORLD

HUDDLE: CANADA

HUDDLE: MATT DAVEY Matt Davey, Tekkorp Capital and Tekkorp Digital CEO, on what US investors look for in digital firms, and the benefits of merging into a SPAC.

THE GREATER GOOD

CLASS II ACT

CAN TRIBES CAPITALIZE?

NO TURNING BACK

ROUNDTABLE: SPORTS BETTING Industry experts discuss sports betting strategies for market share as states continue to legalize.

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THE MADNESS OF MARCH Keith Whyte, executive director of the NCPG, discusses March Madness, college athletes and responsible gambling in sports betting.

OPPORTUNITY KNOCKS Kamran Hedjri, CEO of PXP Financial Inc, on the benefits of digital and cashless transformation to payment providers.

Matthew Morgan, chairman of the Oklahoma Indian Gaming Association, on progress made and optimism for the future, with sights set on the Conference and Trade Show this summer.

AHEAD OF THE GAME With Mohegan Sun to run the casino at the new Virgin Hotel, will it help set a tone of revival in Las Vegas?

Kambi’s US director Matt Hosman speaks about the opportunities sports betting can present to the tribal gaming sector.

THIS WAY TO PRODUCE Gaming America gets a few minutes with Andrew Burke, Bluberi CEO.

Lead designer at Eclipse Gaming Jimmy Kowalski tells how the tribal gaming industry can recover from the Covid-19 pandemic.

SETTING THE PACE Launching a diversity and inclusion initiative to help minority-owned businesses has helped customers recover from shutdowns. Pace-O-Matic CEO Michael Pace elaborates.

Despite being hard hit by the pandemic, Tribal gaming in California has been a benchmark for perseverance. Ezra Amacher investigates.

COMMENCED COUNTDOWN Using a case study of a delayed launch, Ainsworth's Mike Trask discusses with Ezra Amacher the ever increasing need to stand out from the crowd.

Paul Burns, president & CEO of the Canadian Gaming Association, speaks about the state of play in Canada.

WHERE THE ACTION IS Tina Hodges, CEO of Tennessee startup Action 24/7, discusses what it takes to outslug the biggest operators in sports betting.

Scott Sibella, president of Resorts World, speaks about stepping up and standing firm in order to usher in a new era to the city.

IN A FLASH Lightning Box CPO David Little discusses the quickfire growth in the US online casino market, with Michigan as a frontrunner.

Jeff Silver, Of Council, and Patrick Sullivan, Associate, at Dickinson Wright explore how tribal sports wagering can compete.

ALL IN ONE AND ONE FOR ALL

THE MAIN COURSE? The Innovation Group president Michael Soll helps us explore whether sports betting itself is the entrée or just the appetizer for players cross-sold into other verticals.

PRODUCT REVIEWS Gaming America brings you the latest and greatest products to hit the market in a season of inspired innovation.

FROM THE TOP

FROM THE TOP:

NO WAY, PARLAY With single-event sports wagering set to be legalized in Canada, Tim Poole assesses the anticipation that’s building around the potential billion-dollar market. If you were asked to name the most exciting sports betting market in North America right now, where would it be? New Jersey, the poster child for the legal sports betting market ever since PASPA was overturned? Nearby Pennsylvania, where online gaming has been similarly embraced? Could it be Colorado, Tennessee, Virginia, Michigan or any of the recently launched, burgeoning state marketplaces? In the here and now, all of the above and more are generating the kind of buzz that was merely a vision in early 2018. Now, it’s a full-blown reality and myriad headline partnerships, state revenue reports and marketing offers are ensuring legal sports betting is truly making waves on a national scale in the US. Yet, among those with a view to the future, there is awe at the potential of key markets that have yet to even legalize sports wagering. How big, for example, can California or 8 GAMINGAMERICA

New York become in terms of both legal sports betting handle and revenue? You may have noticed, however, that our question referred to North America and not the US specifically. Indeed, looking north, it’s no understatement to suggest sports wagering in Canada could yet generate more excitement than any other up-and-coming market. That’s saying a lot given the prestigious list of aforementioned names. With the news in late 2020 that Canada is on the path to legalizing single-event sports wagering, headlines and optimism were created in equal measure. The industry has not failed to notice the potential uptick in Canada’s sports betting future. For anyone who either works or partakes in sports betting, the notion of there being no single-event wagering will sound completely bizarre. If you want to back the Super Bowl winner,

FROM THE TOP

US Open Champion (golf or tennis), or bet on the NBA playoff finals, you simply can’t. That is unless you combine it as part of a two or three-way parlay (as a minimum). With those odds, the house will almost certainly win long term, meaning fun and entertainment, but also the ability to apply skill and analysis, are all severely reduced. It has rightly been described as archaic now that Canada’s sports betting future looks so much brighter, with a genuinely competitive marketplace able to develop to meet genuine demand. FansUnite Entertainment CEO Scott Burton was keen to laud the opportunity in the Jan/Feb edition of Gambling Insider, while Brian Wyman, partner at the Innovation Group, stressed the necessity of this legalization in a January edition of GI Friday. Two crucial reasons Wyman put forward were competition from border states in the US and the fact so much of Canada’s current sports betting is done on the gray market. He wrote: “What does this mean for Canada? Canada’s legal and regulated sports betting market was approximately C$200m (US$158.5m) in 2019, including interactive. Meanwhile, the Canadian Gaming Association (CGA) estimates that more than C$4bn was wagered on offshore gray market interactive sports wagering sites, or another approximately C$200m in revenue. And a whopping C$10bn, or C$500m in revenue, was wagered illegally with bookies within Canada. The Innovation Group forecasts that the legal and regulated Canadian sports betting market can approximate C$1.9bn, nearly 10x its current volume, within five years.” These numbers are not to be sneezed at and, in a statement back in November 2020, CGA president & CEO Paul Burns (who appears later in this issue) further stressed the necessity of legalization due to the economic impact of the COVID-19 pandemic. Burns said: “Amending the Criminal Code to legalize single-event sports wagering will provide provinces with the necessary tools to deliver a safe and legal option to Canadians while enabling economic benefits to flow to licensed gaming operators, communities and provincial governments. I can’t emphasize enough how this small change to the Criminal Code would help communities recover from the economic devastation of the ongoing COVID-19 shutdown.”

It is a hopeful time in general for Canadian gaming, despite the effects of the pandemic, because of the promise online betting brings. In Ontario, online gaming is on its way to becoming legalized, with the CGA again applauding legislation that aims to make this a reality. According to the Association, online gaming has been gaining in acceptance in Canada for more than a decade. Ontarians are said to already be playing online on a daily basis – so why not legalize this form of gambling with appropriate regulatory oversight? Again, though, Burns couldn’t fail to mention how influential US sports betting success has been in showing the need for Canada to follow suit. Rather than looking on in jealousy, Canadian gaming stakeholders can foresee real promise in their future if a similar system is replicated. Naturally, responsible gaming concerns may be at the forefront of anyone still opposed to Canadian sports betting or online gaming. Keith Whyte, executive director of the National Council on Problem Gambling, features later in this issue and recently spoke as part of the GI Huddle’s problem gambling series. There, he admitted the US is far behind the UK – where systems and attitudes are still far from perfect – on the responsible gambling front. But that in itself is all the more reason to regulate than not regulate, ensuring a system can be put in place to safeguard players. As the CGA has previously noted, plenty is already wagered by Canadian bettors, but simply not as part of a legal market, thereby not helping the country’s tax revenue and always adding that extra element of risk for players. Besides, if a sports bettor wanting to wager on a single event then has to add two more picks just to make it legal, the law is actually encouraging players to gamble less responsibly. Clearly, there are still some complications and intricacies to get past, with Canada – like any market – having its own unique nature (even more so, each province within Canada). But the time to move ahead looks to have arrived for Canadian sports betting and perhaps Ontario online gaming, too, and the excitement it is generating is fully justified. The US has been talked about as the go-to, high-growth sports betting market within global gaming for some time. Now Canada can begin to enter that conversation, too.

“FOR ANYONE WHO EITHER WORKS OR PARTAKES IN SPORTS BETTING, THE NOTION OF THERE BEING NO SINGLE-EVENT WAGERING WILL SOUND COMPLETELY BIZARRE. IF YOU WANT TO BACK THE SUPER BOWL WINNER, US OPEN CHAMPION (GOLF OR TENNIS), OR BET ON THE NBA PLAYOFF FINALS, YOU SIMPLY CAN’T.”

GAMINGAMERICA 9

DICKINSON WRIGHT

SKIN IN THE GAME Jeff Silver, Of Counsel, and Patrick Sullivan, Associate, at Dickinson Wright explore tribal sports wagering and how it can evolve alongside shifting regulations in order to compete in the big leagues. On 15 May, 2018, the United States Supreme Court issued its Murphy v. National Collegiate Athletic Association decision in favor of the State of New Jersey, striking down the 1992 Professional and Amateur Sports Protection Act (PASPA) that prohibited states from legalizing sports wagering. Immediately following the decision, the National Indian Gaming Commission (NIGC) issued a statement affirming its support for Indian Tribal regulators’ ability to drive decisions as to how Tribes would participate in the new legal sports wagering market. The NIGC stated, “We anticipate that Tribes will be given a seat at the table to voice their positions, bring their perspectives and collective expertise, and maintain regulatory and operational control over all the gaming that occurs on their lands.” 10 GAMINGAMERICA

Under the Indian Gaming Regulatory Act of 1988 (IGRA), sports wagering falls into the broad category of Class III gaming, which can only be conducted by Indian tribes pursuant to a negotiated compact with the state where the gaming takes place. These Class III gaming compacts contain provisions limited to the application of State and Tribal laws and jurisdiction related to the gaming and gaming land, reimbursement to the State and local governments for use of municipal services, exclusivity fees, and other provisions “directly related to the operation of gaming activities.” These compacts enumerate the types of gaming that may be conducted by the Tribe. Plus, amendments are generally necessary to allow the Tribes to proceed with new gaming, including sports wagering. For the stand-alone Tribal casino, sports wagering has to make

DICKINSON WRIGHT

economic sense for the Tribes to open negotiations and grant concessions to be able to proceed with sports wagering. A recent Eilers and Krejcik Gaming study reveals that since May 2018, 25 states and the District of Columbia have legalized sports wagering and 13 more states are considering legalization. Yet Indian Country is moving very deliberately to ensure that sports wagering would be worth opening existing state compacts and making further concessions to State

JEFF SILVER

PATRICK SULLIVAN

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Governments, which are desperate for new revenue sources due to plummeting pandemic tax revenues. Consequently, while the spread of sports wagering has gone viral nationwide, as of this year, very few Tribal casinos have opened sportsbooks. At press time, only New Mexico, North Dakota, Oregon and Michigan have tribal operations with some form of sports wagering, with the Arizona State Legislature having recently approved such offerings. While I have alluded to concerns about reopening compacts, another element is profitability. Of the States mentioned, only Michigan and the legislation passed in Arizona allow for online or mobile sports wagering, for Tribal casino patrons who desire to wager while off Indian land. Due to the thin margins associated with sports wagering, sportsbooks are offered almost as an amenity to casinos to draw customers in to play their much more profitable slots and table games. In Nevada casinos, sports wagering was offered to attract visitors to a wraparound brick-and-mortar “resort experience.” For smaller operators, offering on-site sportsbooks doesn’t pencil out, and the ability to generate a larger handle by reaching more bettors through remote wagering is necessary to survive. As an example, upward of 90% of New Jersey’s sports wagering revenues are derived from online, remote betting rather than in-person sportsbooks. Recent national statistics bear out this trend, with remote sports wagering responsible for 82% of overall revenue. The Nevada Gaming Abstract, a collection of statistics from Nevada’s casinos, reports that sportsbooks’ net win (revenues less payouts) have ranged between 4% to 6% annually. Looking at the profitability of the overall operation, if a sportsbook has a total handle (face value of wagering tickets) of $1m, that means on average, the net win will be somewhere between $40,000 to $60,000. Immediately deducted from that amount would be the Federal Wagering Excise Tax of .25% of the handle, which means the US treasury takes $2,500 off the top, regardless of the outcome. The state gaming taxes, which in Nevada are 6.75% of net win, means another $2,700-$4,050 deducted from the win total. Subtracted from that would be the costs of operating the sportsbook itself, which include among its expenses: labor, cable and satellite television charges, information services, software fees, marketing charges for players clubs, customer complimentaries, security, accounting, advertising and general overhead charges. After all of these expenses have been calculated, the profits, assuming there are any, would be subject to the company’s corporate income tax. While larger volume sportsbooks with a substantial handle can overcome statistically thin operating margins, smaller operations like Indian tribes must consider all of the variables inherent within their market; including whether wagers

DICKINSON WRIGHT

must be made on the Indian gaming lands specified in the Tribe’s federally approved tribal gaming ordinance and compact. Most of the national and international sportsbook operators are behemoths backed by billion-dollar companies spending millions on advertising to sign up players and to secure market share. Their technology, superior information and customer base, including relationships with major sports leagues, would make competition as a standalone sportsbook unthinkable. Turnkey sports wagering solutions are available, in which the casino hosts a kiosk operated by a national sportsbook, and the Tribal casino takes a commission on wagers rather than accepting the risk of operating its own book. In some instances, the national sportsbook operators have tried to lure tribal operators

with large up-front incentive deposits. However, these payments would likely be based on the understanding that wagering would not be confined to the casino building. Notwithstanding, those commissions are still unlikely to motivate Tribes to open compact negotiations when the overall uncertainties could be much greater. We are in the beginning stages of the sports wagering phenomenon and therefore much is still to be written. For the most recent “big game” there were breakdowns overloaded on a particular side. However, the interest in sports wagering is undeniable. Hopefully, such visibility will not attract too much attention from Congress, which periodically floats the idea of another layer of federal regulation and taxation to spoil the party.

SIZE MATTERS While margins can be tenuous, even those profits can disappear when the sportsbook gambles against the players by accepting large wagers that it’s unable to offset with patrons on the other side of the bet. For example, Houston’s Jim McIngvale, also known as “Mattress Mack,” placed a $3.46m bet on the Buccaneers (+3.5) with DraftKings on Super Bowl Sunday, and took a payout of $3.16m when Tampa Bay beat the Kansas City team, 31-9. While DraftKings can absorb that loss due to the size of its handle, such a payoff, if not properly balanced, could wipe out a smaller operator. Sports wagering is also known as bookmaking because operators must balance the books between the two sides on the event (with ties being a “push”). The sportsbook’s profit is the vigorish, or the commission received on the difference between what is wagered and what is paid. The bettors select a position, either based upon point spread (by how many points a team must beat, or not lose to the other team) or select a particular team and then bet the amount, which needs to be wagered in order to collect a variable payout amount. For the most recent Super Bowl, Kansas City was favored to win by 3 or 3 ½ points, depending when and where the wager was made. A wager on the favorite would only win if the final score had Kansas City winning by more than that number and therefore it was able to cover the point spread. In this case, the underdog, Tampa Bay did not lose by more than 3 ½ points; in fact it won the game outright. To account for the vigorish, a bet on either team (taking, or giving up the points), required a bet of $110 in order to win $100 (11 to win 10). If a bettor wanted to wager on a particular team winning without regard to the point spread, that is called

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a money line bet. The amount of the wager or the amount won would be varied depending upon whether the bet was on the favorite or the underdog, with the number based upon the odds set by the sportsbook. If a team is listed as +120, that means to bet on that favored team to win, a bettor would have to wager $120 to win $100. In the case of a team listed as a -120, a bet of $100 on the underdog would win $120. There were several substantial money line bets on the Super Bowl, Mattress Mack was one instance and in another, a patron wagered $1m on the underdog at -135 and won $1.35m. This is a very simplified primer on sports wagering, since there are also all manner of proposition bets, such as whether the total score would be more or less than a number postulated by the bookmaker (over-under), or the myriad of other exotic wagers offered for a Super Bowl, such as which team scores first, the possibility of a safety, etc. These wagers are mostly low limit and for the purposes of player engagement.

THE HUDDLE: SCOTT SIBELLA

What in the world We’re just a few months away from the most anticipated Las Vegas Strip opening in over a decade. On the site of the former Stardust, Resorts World Las Vegas, developed by Genting Group, is already making a massive statement in its scale, complexity and oﬀerings despite convention saying it’s business suicide to go all in on a land-based complex of this ambition during a pandemic. But status quo be damned. In this episode of the GI Huddle, we catch up with Scott Sibella, president of Resorts World, who speaks about stepping up and standing ﬁrm in order to usher in a new era for the city.

What was the impetus to build a property of this scale in Las Vegas? Can you discuss the timing and the need for such a project? Genting is our parent company out of Malaysia and we've been in the hospitality business for over 50 years all over the world. So this is a big project for Las Vegas of course, and for us, but we've done big projects like this in other areas. And the goal was always to bring Genting to America, and to Las Vegas. That was the founder’s goal. The company has done some big projects in all diﬀerent types of hospitality businesses, and we just thought it was a perfect time to bring a property at this level. It's been over a decade since Las Vegas has seen anything like this in the city, so it's going to be refreshing and something that's good for Genting, and also good for the city of Las Vegas. How did Genting get involved in the project and how has it strengthened its presence in the US? We've been in New York for many years. We have a casino there that we operate with the government of New York and about two years ago we built up a property in the Catskills, which was going well. Things were starting to take shape and then of course COVID hit. So we're getting through that. It was perfect timing for me because I've been in this industry for many years and was with MGM Resorts. An early retirement programme came out and it was good timing to leave there on good terms and join our chairman KT Lim at Genting. I’ve been here about almost two years now. It was good for me to get some insight about the city when it comes to running casino properties. So we made a few changes. He allowed me to do some things to make the property easier to ﬂow through and 16 GAMINGAMERICA

with some design elements. So it didn't hold us up a lot but it did move us to the summer of 2021, and we're on schedule to open then. What was the impetus for the theme of Resorts World? How did that come to fruition? In the early days when Genting was looking at diﬀerent ideas on the building and the architecture and design, there were a lot of things thrown out there. It was never an Asian theme; we’re not just after Asian customers. We would never do that. We're an Asian company, yes, and we know we're going to get a lot of Asain clientele, but it's a very traditional, modern-themed property. It has an Asian feel to it when it comes to maybe some of the art, restaurants and some of the color palettes, but there's no panda bears or Great Wall of China. Was the location always something strategically in mind? Why was that part of the Strip particularly attractive to you to settle there? We really like the north side of the Strip. It may not happen overnight, but we know things are going to start shifting this way. They are all luxury properties, so we love being associated with the Venetian, the Wynn, and you’ve got the Mall right there, and Sahara has done some great things to their property. So we know it's going to continue to come this way. We like that we have all this land, around 88 acres, and we're only building on two thirds of that. So we have plenty of opportunity for future development, which is part of our plan. We really want to be the ﬁrst integrated property on the Strip that really is

THE HUDDLE: SCOTT SIBELLA

integrated, where you don't have to leave this property because of everything that we're creating and programming within Resorts World. In terms of attractions and offerings that you're going to have, how do you see it really transforming not just that part of the Strip, but the city in general? I think, as I mentioned, there hasn't been anything at this level in over 10 years. It's going to be a long time before you see another property like this built in Las Vegas. We are adding everything we possibly can add. So there's a 5,000-seat state-of-the-art theatre and plenty of other attractions. It's going to be a must-see property because of how we're programming it. There’s a lot of secrets I can't tell you about, the restaurants we’re building and some of the attractions, but we're going to open with 3,500 rooms. There's going to be plenty of food and beverage outlets and nightlife experiences and, again, everything that we learned in the past and with many years in Las Vegas, we're building into this property, and we're designing more of a property that's going to be a non-gaming property. It's been a paradigm shift here in Las Vegas. We think 70% to 75% of revenue will be non-gaming. So casino is somewhat of a second part of what we're building. Yes, we're going to have high gaming areas and we're going after that high-end customer in Las Vegas, but the casino part of it is just another part of the property. We're concentrating more on what we can do for non-gaming patrons who come to Las Vegas and want the retail experience, the entertainment experience. That's our plan. And of course the elephant in the room is the pandemic. How far into construction were you before that hit? I think you've been constructing for maybe two and a half or three years. Yeah, things were just starting to really take off, and we built our team up and we had over 4,000 construction workers and then the pandemic hit. But we never came to a stop. We were very fortunate. We played by the rules, had great guidelines and we got down to about 1,500 employees. But today we're up to over 4,000 construction workers. So it slowed us down, and we had to figure out how to do it the right way, like getting people in the elevator to get up to the certain areas. And when you do construction you're usually in teams and pairs so we had to follow the protocols. But we were doing a good job with it and we caught up, so again we're still on schedule to open this summer and we’re fighting our way through it.

air on the Las Vegas Strip, not because other properties can't do it, it's just more difficult because of their infrastructure. So again, here we are 10 years later, asking about what the best systems out there are to get the best, cleanest and safest air in the rooms throughout the property and so forth. So that's something we were working on, and here it happens today that's what we're all talking about; so that was already in place, and the technology we're using on how you don't have to interact with employees was always a plan. Every decision we made had to do with technology; what can you do in today's world that you couldn't do years ago. So we're just taking advantage of all the new things that are out there. After completion, of course, the $4.3bn property will be the most expensive on the Strip. Can you give us some context in terms of ROI considering data from the LVCVA currently showing that tourism numbers are at record lows and there are midweek closures. How are you going to be able to attract a lot of footfall to make sure it's viable? There are two answers to that. The first one is we're learning that the properties on the Strip are doing okay through COVID. They’re playing by the rules and they're still cash flowing positively, so we like to see that. We know if we did open and we had to open under certain guidelines – which we think will be behind us – I do know the city is very resilient. We’ve proven ourselves in the past that this city will take off much faster than other cities because of who we are. So we think that summer is going to be a good opportunity for people to get back to having fun. No, the convention business won't come overnight, but we think it will be strong this summer. When it comes to cash flow and who our competitors are, we're going after everybody. So our rates will be just as good as Wynn’s and Bellagio’s, but at the same time we want the Treasure Island customer to come to our property. It will be one of the top properties on the Strip when it comes to generating cash flow, that's our goal.

So there weren't any alternatives, other than just forge ahead and see to its conclusion? Yeah, and a lot of things that we're experiencing with COVID we were already taking into consideration from the beginning. So airﬂow is a good example. We wanted to have the cleanest GAMINGAMERICA 17

THE HUDDLE: SCOTT SIBELLA

And of course you mentioned conventions. Do you see those returning the same way that they did? They historically have been very important to the city, so how much space have you dedicated to the conventions once they return? The convention business is very important to us. It's a strong segment. Again, one of the reasons why we like this location is because of the new Convention Center. It’s right across the street and it’s completed now. We worked out a deal with The Boring Company so we will be one of the ﬁrst properties to connect when we open. You go downstairs and you're at the convention centre in three minutes. Convention business was always top of mind. We'll have over 300,000 square feet of convention business, and we think we’ll do very well with it because of the proximity of our property and the Convention Center and how things will continue to shift down here. Summer is coming up soon. Regardless of how diﬀicult the year has started, what are the last things that have to be put in place before you open? A lot of sleepless nights. It’s got to the point where you just hope everything's going to work when we say it's going to work. We’re getting down to that point where it's like a baseball game. You're in the ninth inning now and there’s no turning back. So we're in the process of testing systems and making sure everything works, and tightening up the budget. We're still on budget, we're still on time, but every day is a challenge. You just have to stick to those critical paths and hit those days. The good thing is we're opening this summer. I can’t say we can select the date, but we're really watching closely what's going on down on the Strip and with COVID. And we really hope things improve in the next 90 days, so we can see that it's going to get better and we can plan our opening. I don't want to open at 50% of these protocols. We really hope it does get better, but there's a lot of hard work now and we're at the point where things have to work the way you planned it. But we're excited to open this summer and we're excited to bring this beautiful jewel to the city of Las Vegas. Are you planning a big grand opening? Is it going to be a massive celebration? We’re still working on it. There's going to be a lot of openings throughout the summer but we're working on planning on how we're going to do it. But I really am excited about some things that we'll be announcing in the near future: our entertainment lineup, our restaurant lineup, and some other great attractions. There's a lot of must-see things here at the property when it comes to art and attractions and things like that. I'm really excited to showcase that to the city and the visitors, and we know people are going to want to come down here and see what we’re building. So far it sounds like a case study for perseverance. What are you looking forward to most on a personal level? I know what we're building is special. I've been doing this a long time and it really is something great. It's not only great for Genting, 18 GAMINGAMERICA

but what I keep talking about is how great it is for the city. I just think it's going to help us rebound faster, we're going to create all these jobs, we're probably one of the largest private construction jobs in the country. I'm glad and happy that we can hire some of the people who have been let go. That's all we read about every day. You can't blame the properties because there's just no business. So I think it's a good story that 6,000 employees are going back to work within the city. We're close to 80,000 people that have applied. I wish I could hire all of them, but it's nice to know that we’re hiring some of them. We're going to hire vendors, and everybody's going to have to supply us with things; so it's a good story that a property like this is opening in the city and I think it's going to be perfect timing for all of us.

THE HUDDLE: CGA

Single-track approach Paul Burns, president & CEO of the Canadian Gaming Association, speaks exclusively to Tim Poole about the legalization of single-event sports wagering in Canada and online gaming in Ontario. By way of intro, can you tell us about the Canadian Gaming Association (CGA) and what you personally do in your role? The CGA is the national trade association for the gaming industry in Canada. We represent operators and suppliers both in land-based and online gaming, and our primary role is around education and advocacy. Because of the large government involvement in gaming in Canada, we often do advocacy work to government, like we’re doing right now on sports betting. And we work cooperatively with regulators and other entities across the industry, as well as stakeholders, to really further enhance the opportunities for the gaming industry. It must be a very busy time for you at the moment. It has been. Right now, most of the casinos in Canada are closed due to COVID-19 restrictions. So obviously 2020 was a horrendous year for the industry and it’s carrying on into the early part of 2021. But there are some really good bright spots on the horizon, like ﬁnally getting Canada sports betting modernized to permit single-event wagering. Parlay wagering has been legal for years but not single-event wagering, and Ontario is moving to create a regulatory framework to license online gaming. As everyone probably knows, Canada has a quite robust gray market. Ontario is the ﬁrst jurisdiction to try and tackle that, and try and bring some regulatory framework to online gaming. So there’s some really great opportunities heading in 2021, and that’s what we’re focusing on right now. 20 GAMING GAMINGAMERICA AMERICA

The two fundamental developments you mention are certainly something the industry has noticed. The first I wanted to ask you about was sports wagering. Could you talk us through how it currently works in Canada? I simply can’t imagine it not being legal to place a bet on one event without having to bet on another. The legal wagering options in Canada are through the sports lottery products offered by the provincial lottery providers. There are tools and prop bets in most jurisdictions, so you have to create a parlay, a minimum of three in most cases, some places it’s two, to place a bet. Even a couple of years ago prop bets weren’t found so you’d probably have to parlay with an NHL game or two to place a bet on the Super Bowl. That’s really what it’s been and that’s why Canadians really gravitated to the online, offshore market. There’s quite a robust illegal bookmaking business in Canada primarily operated by organized crime. And so Canadians bet almost CA$14bn (US$11bn) in the illegal offshore channels, versus about CA$500m through the sports lottery products. That alone tells you where the preferences are for where consumers have chosen to go and get their products. What is the exact timeline for the legalization of single-event sports wagering? It’s been a frustrating odyssey, to say the least. It’s been about 10 years for me personally working on this. We’ve previously had a bill passed from the House of Commons but didn’t pass our Senate, the second chamber. So this time we actually have two bills right now in the House of Commons. The Government, sensing and

THE HUDDLE: CGA

understanding the need to get it done, introduced their own bill in late November. They’re almost identical and we’re hoping one of the two of them is successful in the next few months. The frustrating part has been every major party in the House of Commons has supported these initiatives. So it’s a matter of process standing in the way; that’s the agonizing part, the wheels of government don’t turn fast enough. The growth in the US marketplace has been tremendous and that spills over into Canada, when we see a lot of US broadcasts of sports, so the awareness of increased sports betting interest is rising. The best-case scenario for these bills is this spring. We are working as hard as we can towards that, hopefully encouraging the parliamentary process to pick up the speed and get it done. I can certainly understand your frustration. If the bills are passed in spring, would that mean a market launch in spring or would that come later down the line? That would probably be a bit later. The provincial governments, much like the US, have their own regulatory framework. Right now, the CGA has an industry committee working with regulators. There is some level of harmonization across the country, because we’re not a big country, so we’re ﬁnding ways to make it more advantageous for suppliers and operators to do business jurisdiction to jurisdiction. I think a launch would come in late spring or summer; deﬁnitely by the fall. There are no other legislative issues that need to be taken care of, even at the provincial level; it’s all done by regulations. The legislative wheels will be done and the provinces can then choose when and how – and it’s up to them.

The Ontario Government announced in the spring of 2019 they would look to explore options to regulate online gaming, in recognition of the large gray market that’s occurred. Ontarians are probably betting CA$500m through the gray market. So they’ve started a consultation with industry through the Alcohol and Gaming Commission of Ontario. This past fall, the provincial budget announced they’ll move forward and there’s more structure to it now. It will be done through the Alcohol and Gaming Commission, rather than through the Ontario Lottery & Gaming Corp. Now, what we’re waiting for is the last round of consultation to begin. And that’s really around looking at finalizing regulatory standards; Ontario’s taken a really progressive approach when looking at this. It’s hard to ask companies that already have customers to come into the regulated market and be taxed. It’s a delicate balance to try and achieve that. They want it to meet some regulatory best practices but not be overly aggressive in terms of tax rate. That needs to be finished in the next few months; more discussions are needed on market structure and taxation fees – that’s the next round. The understanding is, without a firm date on when the market will open, there’s an expectation that it’ll be by 2021, perhaps late Q4. There are other jurisdictions taking a hard look at what Ontario is doing; I don’t expect them to start until they look at how Ontario has launched. But they’re optimistic and we’re seeing good signs for the gaming industry in Canada. We want to level the regulatory playing field and make sure everybody’s playing by the same rules.

That sounds like a cause for optimism. You mentioned US gaming before: some US states have absolutely flourished, like New Jersey, but others find themselves in a similar situation to Canada. Would you say the COVID-19 pandemic has really changed the opinion of policymakers, like it has in certain US states? In the fall, we were quite hopeful things were moving quicker because of the government bill. The provincial governments have been supporting the industry as best they can during COVID-19. And we were asking the Federal Government to pass this, saying, “It doesn’t cost you anything; it’s a huge help for our industry to be on a level playing field with the offshore market and others.” They heard us but it’s again the execution where we’re a little concerned right now. It’s not moving as fast as we would like. How about the timeline for online gaming in Ontario. Can you talk us through the latest developments there? GAMINGAMERICA 21

HUDDLE: MATT DAVEY

A year of caution Matt Davey, Tekkorp Capital and Tekkorp Digital CEO, speaks to Gaming America about what US investors are looking for in digital firms, as well as the benefits of merging into a SPAC. Could you talk through your current ventures at Tekkorp Digital and Tekkorp Capital? I had the luck and pleasure of building a business called NYX Gaming Group over a 15-year period, which culminated in a sale to Scientific Games back in January 2018. Fast forward to January 2019 and I fully integrated the company within Scientific Games, then set up my own investment vehicle, the view being how do we deploy capital into this expanding sports betting and online gaming market, with a particular focus on the dynamics of what’s been happening here in the US. That’s been a fascinating experience. Along the way, we also saw the big arbitrage between the private-based investment type opportunities versus public investment opportunities. To help capture that and bridge the gap, we launched a special purpose acquisition company (SPAC) called Tekkorp Digital Acquisition Corp, and we raised $250m in trusts. We’re actively in the market now talking to private companies about going public. Our focus there is on the $1-2bn price valuation range; we’ve been actively investing, also through Tekkorp Capital, which is my private vehicle. We’ve made a number of investments there, more on the growth equity side of things. It’s just been incredible to look at how many entrepreneurs are coming into the market with great ideas, looking to solve problems we have here in the US. When we spoke for the CEO Special of Gambling Insider, you told us any firms you’re looking to invest in must have a nexus with the US market. Can you expand on the type of profile of company you’re looking at? 22 GAMINGAMERICA

The nexus to the US is particularly relevant to our public vehicle, the SPAC. The thinking there is there are a large number of fast-growing and highly innovative gaming operators and suppliers in the global market. Not all of those would make sense in terms of going public in the US. What the US market is looking for is you might have great economics and a great business, great team, but why is it relevant to me? Why should I, as a US investor, think about investing in your business? So we are looking specifically for companies that meet those growth metrics: great management, great technology and great intellectual property. But they must also have a really clear reason as to why they would need to be public on a US exchange. And typically that relates to actually running operations here in the US. The good news is the US market is probably the most attractive emerging market in the world for sports betting and online gaming operators. So we don’t have much of a challenge in finding that nexus but it’s important to ask that it logically makes sense; we’re listed on NASDAQ, so our investors will be looking for what the US story is. Would you say that is a profile all US investors look for? And how different is the profile of a firm US investors are looking at compared to the rest of the world? Looking at just the companies themselves, we’re seeing two different types of businesses really here in the US. We’re seeing home-grown opportunities, where entrepreneurial businesses or great technology companies that have been around the space are really looking to tap into the online sports betting market. Either through the supply of data, analytics or core software, perhaps even the operations side. But we’re also seeing a lot of the more mature European operators

HUDDLE: MATT DAVEY

look to expand into the US market and bring their technology, operations, skill set and experience into the market. So we’re seeing a range of different types of businesses. The ones that perhaps don’t make sense are, for example, if you are focusing on the African sub-continent. You’re not as relevant to the US market as perhaps a European business that has set up operations in 10 states here in the US. By and large, most internationally scaled operators will have some form of presence here in the US and we’re finding some strong narratives behind their US expansion. Given Tekkorp Digital is a SPAC, we also previously spoke about the benefits of a SPAC versus an IPO. Is it fair to say a SPAC is ideal for a fast-growing technological company, whereas an IPO is perhaps something better suited for more legacy firms? There’s an interesting quirk in the listing process. If you’re a private company and you want to go public in the US, you’ve got three real direct routes: you can do an IPO, a direct listing or you can merge into a SPAC. The main difference in the IPO and SPAC is that in an IPO, you can only talk about past revenue performance. You can’t describe future revenue performance. We find most investors are really focused on what the future growth rate is like, particularly in an environment where interest rates are almost at zero. Investors are really looking for high-quality businesses with a rapid growth rate and great trajectory. So the SPAC process allows companies to merge into the SPAC vehicle and describe in very clear terms what their growth trajectory looks like. And we’re seeing projections go out three to five years. Investors get a good sense as to how the business is developing, where it is today and where it will go in the future. So we find that component allows investors to make more informed decisions. The second component to a SPAC is typically quite often you’ll have a pipe investment go alongside, where you bring additional investors in. That could be another $100-$500m. Those investors have qualified the target as well, gone and kicked the tyres, come to terms with the valuation and they have effectively underwritten that valuation. That gives a secondary indication to public investors that this business has the quality they’re looking for. So we find the SPAC structure allows investors to make more informed decisions and get more comfort with what the future prospects of that company are. And ultimately that’s all investing is: identifying the future growth rate of a company as it grows, not what it’s done in the past. Don't just expect plenty of growth in the US. In Davey's view, there will be plenty of change among market leaders in the years to come. You can find his full interview on gamblinginsider.com/gi-huddle/ GAMINGAMERICA 23

TRIBAL GAMING IN CALIFORNIA

THE GREATER GOOD Despite being hard hit by the pandemic with furloughs, layoffs and squeezed revenue, tribal gaming in California has been a benchmark for perseverance. Ezra Amacher examines the hard work and patience required by tribes, especially those in the Central Valley, to enable not just growth in gaming, but more prosperous communities. As general manager of Eagle Mountain Casino in California’s Central Valley, Matthew Mingrone is as aware as anyone of the role Golden State tribal casinos perform for their communities. When Eagle Mountain is financially successful, the casino’s revenue funds roads, housing, health care, education and other programs for the Tule River Indian Tribe. The casino gives residents of Tule River Reservation and nearby Porterville a place to congregate and escape the social isolation induced by the COVID-19 pandemic. Eagle Mountain leaves guests fed and entertained and, on a good day, with a bit more spare change in their pocket. Mingrone is also witness to the unique challenges placed on sovereign nations like the Tule River Tribe, which relies heavily on gaming revenue in lieu of a tax base to support itself. The tribe’s reservation is tucked into the Sierra Nevada foothills, land that was designated by the federal government in 1873. Though the area is rich in natural beauty – grasslands and oak woodlandssavannah turning into conifer forest as elevation increases, with the Tule River running through the middle of the reservation – the land can be dangerous to reach by car. Water, the most crucial of resources, is pumped unequally into Eagle Mountain, which requires 40,000 to 50,000 gallons a day. “When you’re using that much water, that means houses can’t be built, because as the whole state is experiencing, we are in a very sensitive drought situation,” Mingrone says. “I know that a lot of parts of the state get publicity for running out of water over the years, as it’s been put to me by tribal elders and tribal chairmen, but it’s an every summer occurrence here.” Not long after Eagle Mountain opened in 1996, Tule River Tribe leaders began crafting ideas to relocate the casino to a more sustainable, easy-to-access location. The tribe spent 24 GAMINGAMERICA

20 years planning for relocation. Then in 2016, it sent the Department of the Interior Bureau of Indian Affairs an application requesting approximately 40 acres of land in trust by the US government to develop a casino, which would be built 15 miles west of the reservation inside the City of Porterville. In early December 2020, the tribe at last got word from the DOI. Its request had been approved. “It was celebration,” Mingrone tells Gaming America. “It’s been 25 years of hard work, different various councils and chairmen as well as management. It was definitely a sense of relief but still there is a lot of work ahead of us, but excitement I guess would be a great way to summarize it.”

MATTHEW MINGRONE

TRIBAL GAMING IN CALIFORNIA

The Tule River Tribe was one of two Central Valley tribes to receive significant DOI approval in recent months, the other being the Tejon Indian Tribe. A long-anticipated casino project between the tribe and Hard Rock was approved by Assistant Secretary of Indian Affairs Tara Sweeney. Pending final approval from California Governor Gavin Newsom, the $600m resort will be built south of Bakersfield. “From the start of our relationship with the United States Government in 1851, our Tribe has fought for a homeland for our people. Today we are two major steps closer to that dream,” said Octavio Escobedo III, chairman of the Tejon Indian Tribe. “The Department’s decision enables us to move closer to the promise of self-determination through economic development.”Final sign-offs from the DOI have known to be delayed by interruptions due to staff changes and presidential elections. For both Central Valley tribes to receive approval of their casino plans during the last months of Donald Trump’s presidency was a fortuitous occurrence in an otherwise difficult year. While the Tejon Indian Tribe waits on Governor Newsom’s word, construction of the new Eagle Mountain Casino is set to break ground in the first week of April this year, with a tentative opening scheduled for late 2022. The Tule River Tribe can finally focus its gaming ambitions on a resolute

“WE SHOULDN'T CHANGE AND WE WON'T CHANGE BECAUSE OUR GUESTS, THE PEOPLE THAT LIVE IN OUR TWO-COUNTRY SERVICE AREAS, THEY'RE NOT CHANGING. WE WILL CONTINUE TO BE A VALUE PROPOSITION WHICH MEANS YOU'RE GOING TO GET MORE VALUE FOR YOUR ENTERTAINMENT DOLLAR HERE THAN ANYWHERE ELSE” - MATTHEW MINGRONE

EAGLE MOUNTAIN CASINO

timeline, all the while continuing to serve guests through the ongoing pandemic. Mingrone says demand at the casino was “pretty much immediate” as soon as it opened doors for good in August, a welcome sign after the property temporarily closed in March and again in July. “It was devastating,” he says of the lockdown. “We thought we’d close in the middle of March and it would be a two-week thing and we can open back up, but it was devastating for the whole area. Where we live in the Central Valley of California, it’s very agricultural-based. In Kern County, which is the county right next door, it is both oil and petroleum-based and agricultural-based, so it’s a very blue-collar area. Anybody that lost hours or was laid off really suffered hard.” The Tule River Tribe paid employees salary and benefits for the first six weeks of the closure. Elsewhere in the state, tribal casino employees weren’t as fortunate. The Pechanga Band of Luiseño Indians began layoffs at Pechanga Resort & Casino. Officials at San Manuel Casino, which is undergoing a $550m expansion, sent a solemn notice saying they would have to furlough employees for the first time in the property’s 34-year history. The decision to reopen casinos led tribal gaming leaders down a tightrope of ensuring their community’s safety versus maintaining vital revenue. Since California tribes operate outside the jurisdiction of Governor Newsom, they got to decide when to reopen and under what conditions. According to the American Gaming Association’s (AGA) COVID-19 casino tracker, all of California’s 77 tribal casinos were open as of early March, but with most properties enforcing tight capacity restrictions. GAMINGAMERICA 25

TRIBAL GAMING IN CALIFORNIA

“IT WAS DEVASTATING. WE THOUGHT WE'D CLOSE IN THE MIDDLE OF MARCH AND IT WOULD BE A TWO-WEEK THING AND WE CAN OPEN BACK UP, BUT IT WAS DEVASTATING FOR THE WHOLE AREA. IT'S A VERY BLUE-COLLAR AREA. ANYOBODY THAT LOST HOURS OR WAS LAID OFF REALLY SUFFERED HARD. ” - MATTHEW MINGRONE The incentives to stay open are usually too great. Before the pandemic, tribal gaming in California generated approximately $20bn in economic impact, including 2016 gross gaming revenue of $8.4bn. The state represented more than a quarter of the $31.5bn total tribal gaming revenue that year. Tribal casinos aren’t required to release financial reports so it may be several months or longer until the pandemic’s economic impact on tribal gaming is fully realized. The AGA reported in February that commercial gaming revenue dropped 31% in 2020, which provides at least a comparison to how much tribal properties may have lost. For tribal communities, the economic impact of the pandemic is only overshadowed by the health risks posed by the virus. In December, the Center for Disease Control and Prevention published a six-month, 14-state report showing age-adjusted COVID-19 mortality among American Indians and Alaska Natives to be 1.8 times that among non-Hispanic Whites. Beyond the mere loss of life, the passing of older American Indians contributes to loss of culture, heritage and language. When the Tule River Tribe planned out its reopening of Eagle Mountain, the safety of elders was the first and foremost concern. The casino adopted a smoke-free indoor policy and invested in plexiglass and electrostatic foggers among other measures. “It’s a very strong and vibrant 26 GAMINGAMERICA

elders community that visits property quite a bit,” Mingrone says. “This is their social time. This is their place to get food if you live on the reservation.”Recently the tribe reached another big milestone when it began delivering COVID-19 vaccinations at an on-reservation clinic. Casino employees were among the first essential workers to be offered vaccinations, and Mingrone took his first dose in mid-February. Accessibility of the vaccine gives Mingrone a glimpse into a post-COVID future at the new Eagle Mountain. He expects the Porterville location won’t feel much different than the present casino, which is known locally as “The People’s House.” While the move will bring some welcome improvements, including an expanded casino floor from 1,200 to 1,700 slot machines, a 2,000-seat events center and more dining options, the Eagle Mountain brand will carry on. “We shouldn’t change and we won’t change because our guests, the people that live in our two-county service areas, they’re not changing,” he says. “We will continue to be a value proposition which means you’re going to get more value for your entertainment dollar, your disposable income, here more than anywhere else. We’re going to be what we’ve always been, which is a local destination.”

ECLIPSE GAMING

CLASS II ACT Lead designer at Eclipse Gaming, Jimmy Kowalski, provides Gaming America with an update on how the tribal gaming industry can recover from the COVID-19 pandemic. While the pandemic has tragically and unprecedently affected the gaming industry, this time period had given gaming operators the opportunity to step back from the day-to-day and truly focus on innovation. I think post-pandemic there will be an increase in never-before-seen game features and improved hardware designs.

CLASS II GAMING CONTINUES TO GROW

It’s been a challenging time for the gambling industry amid the COVID-19 pandemic. But for an industry that relies predominantly on the land-based sector, the pandemic has hit tribal gaming particularly hard. It is estimated that in the height of it, as many as 40% of the more than 600,000 that are employed in the tribal gaming sphere lost their jobs as a result. When you consider that figures from the American Gaming Association (AGA) estimated tribes paid more than $15bn to the US in compacts required as part of the Indian Gaming Regulation Act, then it’s clear to see the knock-on effect damage to the tribal sector will have on the rest of the US market. Eclipse Gaming knows the Native America gaming market more than most, with a core focus on the tribal sector at the heart of the company’s ethos. The supplier develops products tailormade for the tribal industry, including casino games and innovative solutions for its casino, social and casual gaming partners. Lead designer at Eclipse Gaming Jimmy Kowalski speaks to Gaming America about the challenges faced by the tribal market and what there is to look forward to as we start to turn the corner.

BIG CHALLENGES AWAIT TRIBAL GAMING Unfortunately, tribal gaming has not been immune to the challenges we are all facing with the coronavirus. Virtually all Indian gaming facilities had to temporarily shutter their doors in an effort to protect the health and safety of the public and their employees. Through these obstacles, however, tribal gaming has effectively and efficiently pivoted, and has truly channelled its focus on the recovery of its community and industry. 28 GAMINGAMERICA

Eclipse Gaming has had a long legacy of serving tribal communities and we are uniquely positioned as one of only a few suppliers dedicated to Class II gaming. We strive to develop deep relationships to our tribal partners to create games for a bigger purpose, to generate powerful results that benefit our partners and directly impact the needs and objectives of their communities. We understand the central role gaming plays to fund the housing, healthcare, education and general welfare of tribal members. That’s why we make sure to strategically align the right products with the right partners using data-driven strategies to create exceptional experiences for their unique players. The Class II gaming market is not only strong but is in fact growing. There are many states, such as Alabama and Texas, which are Class II only and thriving, and other hybrid jurisdictions that consider Class II to be an important part of their roadmap. Also, with many compacts actively being negotiated and extended, strong-performing Class II products help to ensure tribal rights and sovereignty. Tribal gaming, specifically in California, has had significant expansion in recent years. Casinos across the state have turned into destinations, attracting tourists and competing with the likes of Las Vegas. This pushes us as game designers to create Class II content that provides the exhilarating experience these players are looking for, while also standing out from the thousands of other games on the floor. With significant improvements in technology, new Class II products have faster game play, improved graphic capabilities and more sophisticated math models, which provide new and unique experiences for the players. As a result, Class II products are highly competitive and perform on par with or even better than Class III products. Consequently, our games are an important part of hybrid floors and we see many tribal customers mixing in Class II games on their floors.

KAMBI

CAN TRIBES CAPITALIZE?

Kambi’s US director Matt Hosman speaks to Gaming America about the opportunities sports betting can present to the tribal gaming sector. What is most urgent with the tribal gaming market? With more regulatory frameworks being established across the US, launching sports betting with the right insight from trusted partners gives tribes the opportunity to drive greater returns not just through the sportsbook, but across gaming and hospitality as well. Introducing a new product vertical on-property isn't a light undertaking, particularly one with dynamics across both margins and player engagement that set it apart from more traditional casino verticals such as slots and table games. But it’s important not to view sports betting in isolation. Although on-property sports wagering outside of Nevada remains nascent in the grand scheme of US gaming, it's already demonstrated its potential to act as a conduit for driving revenues not just from the sportsbook, but throughout the entire casino ecosystem, while also attracting new customer demographics with provably higher long-term value. For example, Kambi partner Penn National Gaming has found that on-property customers who engage with both casino and sports betting generate five times more value than those who engage with casino only. Furthermore, it has seen revenues from table games rise significantly since the introduction of sports betting. There are challenges when it comes to regulation. There's been frustration with postponements in Washington, and examples where regulation hasn't been rolled out as effectively as other states like Oregon; it’s important that regulation is enacted in a way that most effectively protects the interests of operators and their players.

Do you think the pandemic has slowed down sports betting legislation from being passed, for instance in California? Of course, in many states the pandemic has, if anything, accelerated matters. An impact of the pandemic has been state budgets being stretched, and regulated sports wagering is viewed as an area that can help in ameliorating this. However, in states with a significant tribal gaming presence, things will play out at their own pace, no matter what budgetary needs are. There are complex issues to resolve between multiple stakeholders and it’s vital that the right balance is struck, so things can and will continue at their own pace in states like California.

How important is collaboration between tribes or states when it comes to passing legislation for sports betting? This is what is ultimately crucial. Even if things do move slowly, collaboration and agreement are key if states are going to get regulation right straight out of the gate, with not just on-property but also mobile wagering, if allowed. We have seen in Michigan 30 GAMINGAMERICA

MATT HOSMAN

how tribes and commercial casinos have come together to push for mobile regulation, but it’s certainly true that each state has its own dynamic. Such complex issues will always need a collaborative approach if all stakeholders are going to be satisfied, and local consumers are provided with a leading product.

Can you expand on Kambi’s approach and business with tribes in the US, and particular in California? In terms of our existing partnerships with tribal operators, we're live with real-money sports betting with Four Winds Casinos and Seneca Gaming Corporation, while we have rolled out free-to-play sports betting with Mohegan Sun in Connecticut as we await full regulation. In general terms, tribes aiming to launch sports betting can either do so with a B2C brand, handing over day-to-day management of the sportsbook to an existing operator, alongside the database and brand building opportunities that go with it. For those tribes that believe in the strength of their brand and want ownership of the sports betting value chain, taking the option of partnering with a trusted B2B provider can help tribes drive greater share of wallet, empowered with a full 360-degree view of casino and sportsbook customers to see how they intersect and most efficiently drive long-term cross-sell opportunities. Neither option for launching sports betting is necessarily wrong, and our priority is ensuring that the process is as open and consultative as possible. California tribes are focused on seizing the opportunities sports betting presents and are forward-thinking when it comes to mobile. They want to partner with providers with advanced technology capable of supporting their on-property and online goals, and Kambi has underlined its calibre in this regard.

OIGA

NO TURNING BACK In his first interview with Gaming America this year, Matthew Morgan, chairman of the Oklahoma Indian Gaming Association, gets us up to speed on progress made and optimism building for the future, especially with sights set on the Conference and Trade Show this summer.

OMNI OKLAHOMA CITY

To start off, the most exciting Tribal gaming news from Oklahoma, right here in the middle of Indian Country, is that we are gearing up for our 2021 Conference and Trade Show. We’ll be in Oklahoma City 26-28 July at the beautiful new Oklahoma City Convention Center and Omni Hotel. The two facilities are adjacent to one another, which will allow us to hold all of our events related to the event in a safer, contained space. Our attendees won’t have to use public transportation to get from 32 GAMINGAMERICA

one part of the event to another, it will all be right there. As the COVID-19 pandemic spread last year, OIGA, like so many other organizations, made the wise decision to cancel our 2020 Conference and Trade Show. We made that decision before the mandatory shut-down because it was important to us to act as quickly as possible, in the best interest of our vendors and attendees. We immediately offered to refund fees to those who had planned to attend so that they could

OIGA

quickly redirect them if need be, or to carry those fees forward for those who preferred. It was a tough decision, but one we never doubted. We are grateful to have such a difficult year behind us and we mourn for all of those we have lost to this virus. As we begin to move forward, we do so from a position of strength. Our Conference and Trade Show is like a big, boisterous, hardworking family, and it’s time for a reunion. Otherwise known as ‘the biggest little show in Indian Gaming,’ our events will draw nearly 3,000 vendors, visitors and guest speakers to downtown Oklahoma City to celebrate and advance our industry. Oklahoma is home to 38 federally recognized Tribal Nations and 35 of those have valid gaming compacts. Tribal Gaming is an important economic driver in our state. There’s truly no better location for a Tribal Gaming conference or trade show than Oklahoma. Our Conference host hotel, the new Omni Oklahoma City, is directly across from the 30-acre Scissortail Park. Oklahoma City, with its central location, is also within driving distance for those who plan to attend, and we’ve kept registration fees affordable. After cancelling last year’s events, it’s going to be especially meaningful to

see our friends and colleagues from across the country and around the world. In addition to the Conference and Trade Show itself, a golf tournament benefiting the John Marley Scholarship Foundation, welcome reception and poker tournament will be held on Monday, 26 July; Tuesday morning will be dedicated to conference sessions. The Trade Show floor will open early on Tuesday for maximum networking, and instead of the formal luncheon, OIGA’s Annual Awards will be presented on the Trade Show floor stage, with a more casual meal. Wednesday will be filled with more sessions and fun at the Trade Show. If you have never attended the OIGA Trade Show, you are in for a treat. It is a lively, informative, high-energy assembly of some of the biggest names in the gaming and hospitality industries.

“WE ARE HOPEFUL THAT THE INCREASED URGENCY OF THE BIDEN ADMINISTRATION REGARDING THE VACCINE ROLLOUT AND COVID-19 RESPONSE WILL LEAD TO OUR INDUSTRY AND GAMING FACILITIES RETURNING TO DOING BUSINESS IN A MORE NORMAL MANNER, AND AT MORE NORMAL OCCUPANCY LEVELS AS MORE EMPLOYEES AND GUESTS ARE VACCINATED.”

What do you think the influence of a Biden administration will be on tribal gaming, considering Deb Haaland as his pick for Secretary of the Interior, and his recognition that the pandemic has hit Native Americans particularly hard because of their dependence on work in gaming, hospitality and tourism?

Q&A I recently sat down for a far-reaching interview with Gaming America. Subject matter ranged from politics to the effects of the pandemic on the entertainment and hospitality industries.

OIGA member tribes voiced support for the appointment of Representative Haaland and will be happy to work with her appointments to the National Indian Gaming Commission, as those positions become available. We are hopeful that the increased urgency of the Biden administration regarding the vaccine rollout and COVID-19 response will lead to our industry and gaming facilities returning to doing business in a more normal manner, and at more normal occupancy levels as more employees and guests are vaccinated.

Can you detail the outcome of the recent court ruling that determined Governor Stitt negotiated inconsistent terms to those in an approved model gaming compact? The Supreme Court of the State of Oklahoma upheld what we have always maintained: Governor Kevin Stitt did not have the legal authority to bind the state into agreements or compacts, which deviate from the model gaming compact.

How does this ruling differ to the renewal rulings made last summer? This ruling is consistent with previous rulings. The previous GAMINGAMERICA 33

OIGA

ruling addressed different compacts with other Tribal Nations, but the rulings are consistent: Governor Stitt exceeded his authority in entering into those compacts.

How is OIGA able to work with Governor Stitt and legislative committees, and in what way does this latest outcome further advance gambling for Oklahomans? OIGA does not directly work with Governor Stitt or the legislature. OIGA established in 1986 and is a non-profit organization of Indian Nations with other non-voting associate members representing organizations, tribes and businesses engaged in tribal gaming enterprises from around Oklahoma. The common commitment and purpose of OIGA is to advance the welfare of Indian peoples economically, socially and politically. We are an advocate and resource for the Indian Nations in Oklahoma who do work directly with Governor Stitt and the legislature.

Can you describe how land-based casinos have fared recently as the trend of new cases of COVID-19 across the state is decreasing? Are properties able to operate more effectively as vaccines continue to roll out? Thank goodness, all casinos have been able to reopen, although they continue to operate at diminished capacity.

MATTHEW MORGAN ON THE LATEST ECONOMIC IMPACT NUMBERS IN OKLAHOMA Tribal Gaming in Oklahoma continues to be a potent economic driver, employing thousands of citizens and bringing tourism to our state. Our third Economic Impact Report was completed in August and utilizes the most recent data available, from 2018. In Oklahoma, Tribal Gaming created 28,833 jobs in 2018. Of those, 75% were full-time and 6,199 were part-time. Most of those jobs are held by people who live in rural communities. Of those people employed, 40.7% were tribal citizens and 59.3% were not. Wages and benefits paid were more than $1.4bn, with annual payroll taxes (federal and state withholding, Social Security and Medicare) topping $338m. Annual exclusivity fees paid to the State of Oklahoma were $138,598,418 in 2018 and $148,221,620 in 2019.

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“JUST LIKE EVERY OTHER SERVICE OR ENTERTAINMENT INDUSTRY THAT RELIES ON SAFELY ENGAGING THE PUBLIC, OUR PROGRESS HAS BEEN SLOW AND MEASURED. WE ARE GRATEFUL FOR ANY PROGRESS BUT CONTINUE TO APPROACH THINGS IN THE SAFEST, MOST STEPWISE MANNER, ALWAYS PUTTING THE SAFETY OF PEOPLE FIRST.” Tribal Nations are also doing their share in the vaccine rollout, efficiently vaccinating thousands of Oklahomans. As vaccination rates continue to increase, we know that gaming will soon return to increased capacity, live entertainment and additional dining offerings.

Despite such unpredictability this year, how would you gauge the progression of Tribal gaming in the US, and Oklahoma specifically? Just like every other service or entertainment industry that relies on safely engaging the public, our progress has been slow and measured. We are grateful for any progress but continue to approach things in the safest, most stepwise manner, always putting the safety of people first.

How much does Oklahoma depend on out-of-state tourism for casino revenue compared to intrastate or international? Oklahoma is more of a regional and local market and not a hub for international tourism. However, gaming does draw upwards of 18.7 million visits from other states and 84% of this out-of-state tourism occurs at rural gaming facilities.

ROUNDTABLE

SPORTS BETTING STRATEGY FOR MARKET SHARE Industry experts from Betfred USA, Novomatic Americas, Amelco USA, Bet.Works and Sportradar discuss the key to sports betting strategy for market share, as states continue to legalize. BRYAN BENNETT, Betfred USA Sports, COO

“I’m not sure I’m ready to give full credit to the pandemic for accelerating sports betting legislation or online adoption, but it certainly didn’t hurt.” BRANDON WALKER, Head of Amelco USA

“Most US operators are looking for systems that will get them set for the decade ahead, and they want good foundations. This is especially true for the B2C-facing side of any platform.” KATHLEEN MCLAUGHLIN, Novomatic Americas, VP marketing and product management

“Right now, racetracks and casinos are driving expansion, but when authentic retail sports bars become a driver, the volume takes off, and betting across all platforms explodes.” DAVID WANG, Bet.Works, CEO

“I believe we will continue to see significant growth in bettors and betting activity across all regulated markets. At the end of the day, sports betting is a form of entertainment that consumers very much enjoy and will adopt further.” NEALE DEELEY, Sportradar, VP of US Sales and Gaming

“You have to be in it for the long term. You need to deliver the products that people need. The key is always investing in the products. We concentrate on what we’re doing, making our customers happy and providing them with the products they need to succeed.” 36 GAMINGAMERICA

ROUNDTABLE

DAVID WANG:

As difficult and unfortunate as the pandemic has been for everyone, it’s probably fair to say that the growth of online sports betting has played a factor in how states are viewing the legalization of sports betting. In addition, as more states have successfully approved and launched sports betting, I believe this fosters a better understanding of the market and momentum for greater adoption.

WOULD YOU SAY THE PANDEMIC AND ONLINE ACCELERATION HAVE LED TO A GREATER APPETITE FOR MORE STATES TO LEGALIZE SPORTS BETTING?

KATHLEEN MCLAUGHLIN:

Absolutely. Budget shortfalls have a lot of legislation considering sports betting. The reality is that the economic fallout has sped up momentum. For example, New York has a multi-milliondollar projected budget shortfall, which caused the Governor to reconsider his position and put online sports betting back on the table. The pandemic has generated renewed interest in states like California and numerous others to legalize sports betting to solve their budget deficits. We don’t see demand slowing down, and there is an integral link between online and retail. Much work continues behind the scenes, even with the pandemic, to make sure that sports betting expansions have the opportunity to move forward quickly as North America opens again. We believe that there is an underlying demand for retail that will rebound sooner than later. More than ever, people need to share experiences and reconnect, so retail and online will continue to reinvent themselves as post-pandemic entertainment experiences.

BRYAN BENNETT:

I’m not sure I’m ready to give full credit to the pandemic for accelerating sports betting legislation or online adoption, but it certainly didn’t hurt. The position many states now find themselves in with regards to budgets and tax revenue has encouraged them to put all options on the table including gaming adoption and expansion. In general, there was already momentum for sports betting nationwide; I’m sure the current budget shortfalls have had an impact on timing.

NEALE DEELEY:

Yes, but there always was an appetite for the further legalization of sports betting. Those reasons have only been accelerated by the Covid-19 pandemic and its associated lockdowns, and the effect that has had on the gaming sector. This is particularly important when you consider the effect of the various lockdowns on land-based gaming in the US. I think this has had the most effect when it comes to the strength of the opposition to online gaming and betting. The volume of the opposition from these sources has decreased. There is now certainly less opposition and their voices have somewhat faded away. This is largely because of the evident tax and revenue benefits that sports betting and online gaming states have enjoyed, compared to states where land-based gaming has been all but shuttered for much of the past year. The arguments against online sports betting have been harder to maintain during the past year while those in favor have been emboldened.

BRANDON WALKER:

Yes, with absolute certainty. States across the nation are getting switched on to the fact that there is a real windfall available in terms of boosting income for the state, as well as providing a wealth of entertainment. I would also say that as online gaming and sports betting become more mature both in terms of markets and mainstream popularity, it immediately becomes less of a taboo subject. We’re now almost a full year into sports betting being truly commonplace across the states, with betting lines now becoming a normal part of a conversation surrounding a sporting event, and it offers a whole new dimension when it comes to stats-based action. We can see this with the Super Bowl, which smashed all expectations, and it’s only going to get bigger. Regulators are realising this and improving their processes, making it easier for bookmakers to onboard players and take bets.

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KATHLEEN MCLAUGHLIN:

DAVID WANG:

Given the significant market opportunity that legalized sports betting represents, there have been a number of companies looking to position themselves for entry and growth. We are seeing that in companies across a broad range of sectors from gaming to technology, to media and beyond. For us at Bet.Works, and soon to be part of Bally’s Interactive, we are excited about our ability to capitalize on the market given the powerful collection of assets. Specifically there is the Bally’s brand, market access footprint, and database; the partnership with Sinclair and the Bally Sports regional sports networks; and, of course, our technology platform and product offerings that are further augmented by the recently announced acquisitions of Monkey Knife Fight, the third-largest DFS operator in North America, and SportCaller, a leading free-to-play content developer. Therefore we expect in time to be a leading operator within the regulated sports betting market and capture a significant market share in all of the jurisdictions where we operate.

AS STATES CONTINUE TO LEGALIZE SPORTS BETTING, WHAT IS THE SCOPE FOR INCREASED COMPETITION FOR THE LIKES OF YOURSELF AND YOUR COMPETITORS?

Each time a new state passes a bill to make gambling on sports legal, or changes the law to allow more competition among betting platforms, it’s good for Novomatic Americas. It extends our self-service betting terminal reach. We’re at ground zero in a land grab between market-leading competitors who are in aggressive growth modes, and, fortunately, we work with everyone from BetRivers, Penn Gaming, DraftKings to most recently Playtech. Scores of competitors are attempting to enter the market, and our vision for the future is to be the preferred retail solution provider and ultimately provide in-demand wagering hardware working with premium software providers. Right now, racetracks and casinos are driving expansion, but when authentic retail sports bars become a driver, the volume takes off, and betting across all platforms explodes.

BRYAN BENNETT:

Every state in the US is going to be a competitive challenge for every company in the space, at least at the onset of legalization. Just look at Colorado where we’re not even a year into sports betting and we have at least 20 companies vying for market share in a state of six million people. As a result, any company that enters the US market is going to need to be prepared to spend marketing dollars or bring some creative solution to securing customers. It will not be for the faint of heart and it will probably be a few years before the dust settles.

BRANDON WALKER:

NEALE DEELEY:

The market has always been competitive. Anybody who knows the scale of the US market has been targeting it, so competition here is already pretty fierce and, in my opinion, it’s been like this from day one. It was never not competitive and nothing about the experiences from the past year has changed that. The recipe for winning hasn’t changed either; you have to be in-country and in it for the long term. That is the only way you can win out.

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There’s plenty of opportunity out there as more states legalize and regulate; we’re going to see plenty of local players getting in on the action alongside intern ational suppliers. And as time goes on, we’re going to see books looking to differentiate themselves in the marke tplace, and it will be interesting to see. When it comes to dominating market share, it all comes down to the quality of the product, and we’re not seeing a race among suppliers to underbid with good reason. Most US operators are looking for system s that will get them set for the decade ahead, and they want good foundations. This is especially true for the B2C-facing side of any platform. And as punters become savvier, they will quickly understand what a qualit y product is over an average counterpart. Looking at the bigger picture, we also need to remember that it’s not always about the produ ct alone, and US clients shouldn’t be pigeonholed. From Amelco’s side, we offer a best of breed solution as well as the added value partnerships with the likes of Swish, Genius, Sportradar and Gamesys, which supply a raft of add-ons for data, prop bets and casino.

ROUNDTABLE

BRYAN BENNETT:

This is the key challenge that everyone in the space is trying to answer. For Betfred Sports, the answer is to stay true to our brand heritage from the UK while providing superior value to bettors. While marketing dollars are required, we believe that signing the right partnerships, whether with casinos, media partners or sports teams, can yield a competitive advantage. And we will adjust our approach on a state-by-state basis, which we believe is key to our success. In Colorado, for example, we have settled on a local approach. We’ve signed a sponsorship agreement with the Denver Broncos and a marketing agreement with Rod Smith, the greatest wide receiver in Broncos history, to be our brand ambassador. Additionally, we’ve invested heavily in a partnership with KOA, a local radio station, and worked with some local charities. That local approach has worked for us there, but that may not be the right recipe in other states.

KATHLEEN MCLAUGHLIN:

The answer is experience and speed to market. Sports betting is not a quick and easy business to enter. We are fortunate to have incredible resources that are dedicated to spending on development, marketing, technology and legal to help navigate our expansion from state to state. We have worked hard in a short period to become the market-leading provider of kiosks. Each state is slightly different and we have an internal hardware infrastructure that allows our hardware to integrate well with almost all software providers. We respond quickly and efficiently to every changing market condition, and when our customers ask for a quick turn around and a great product, we deliver. As an example of how quickly we adapt, our latest 2D scanner capability takes speed of betting to a new level. Build your bet ticket on the platform app, take your mobile device with QR code to a kiosk, which is virtually touchless betting since the ticket automatically appears on kiosk, confirm your bets and you’re done. Our increased bet speed and safety is an advantage, especially on busy sports days.

HOW CAN YOUR RESPECTIVE COMPANY COMPETE WITH OTHERS FOR GREATER MARKET SHARE AND HOW DO YOU THINK YOU CAN MAKE YOUR MARK ON THE US SPORTS BETTING MARKET?

BRANDON WALKER:

Again, it’s all about quality. This is where it starts and stops for us. As we’ve seen with other suppliers who have rushed in too fast, without fully understanding the operating conditions they’re dealing with, as well as betting behaviour and patterns, it can be a difficult market. We’ve got one of the best trading teams out there and are feed and partner agnostic, to deliver one of the best solutions. We’ve taken our time to analyze the market, understand it and build the best product with the best features, and we’re delighted with how far we’ve come. Taking a look at the Tennessee roster for selected suppliers, with our name alongside the likes of DraftKings and BetMGM via our Action 24/7 partnership, it’s a testament to our status in the US as one of the leading platforms, and we’re very proud.

DAVID WANG:

I think that the key to our success will come down to the product in creating an experience that is fun and engaging. So this means continued innovation to our existing core offerings, but even more significantly, this will mean integration with Sinclair and Bally Sports RSNs on the media side, and with Monkey Knife Fight and SportCaller on the DFS and free-to-play side. Our vision is to be an omni-channel gaming company, and those integrations will be critical in differentiating our offerings and establishing ourselves as a leader within the space.

NEALE DEELEY:

As I said, you have to be in it for the long term. You need to deliver the products that people need. The key is always investing in the products. We concentrate on what we’re doing, making our customers happy and providing them with the products they need to succeed. As long as we delight the customers, we’re confident that we’ll maintain and grow market share. We very much see the US opportunity as one where we’re partners with our customers, and the eventual winners here are the consumers.

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KATHLEEN MCLAUGHLIN:

BRYAN BENNETT:

I don’t know that there will be any sort of new product trends coming to the US marketplace, but I do think the big story will be the large number of new states that launch this year. Virginia has already launched, and we’re also seeing positive momentum from Louisiana, South Dakota, Washington and perhaps even some new opportunities with Oregon and Texas. From a our perspective, we’ve previously announced our partnership with Mohegan Casino at Virgin Hotels Las Vegas, and that sportsbook will launch in 2021 once we’ve completed our work with the Nevada Gaming Control Board. We’ve also secured partnerships in Louisiana and Washington, which we’ll announce as we get more clarity on the regulatory situation in those states. So 2021 is going to be a huge year for us as we scale our current states and launch new ones.

A few significant trends grew through the lockdown and are gaining traction. Fierce competition in the betting mobile app space is already crowded and becoming more intense, and as a result more live stream events will be offered. Competitors are using the live stream as a value add and an enticement for in-betting where permitted. Because of improved apps, late betting is key so that bettors can understand player or team health and availability in any given situation. It becomes easier to hold off as long as you can to place your bet. Finally, the best trend is the incredible availability of data for bettors and operators. Interpreting and using data to wager has improved exponentially. We are currently looking at every state that even looks like it is thinking about sports betting and are active in quite a few areas.

WHAT ARE THE BIGGEST TRENDS WE CAN EXPECT TO SEE FROM THE SPORTS BETTING INDUSTRY? ARE THERE ANY UPCOMING STATES YOU'RE PARTICULARLY LOOKING AT TO BECOME LEGAL? NEALE DEELEY:

There are exciting developments across many and various states that might either be legislating or opening up sports betting this year, plus on a product level, there’s the continued trend for in-play to grow. On the regulatory front, the murmurings around possible moves in the big four states are very positive, particularly in terms of mobile betting. In fact, that goes for most of the other states where initiatives are ongoing; the arguments in favor of opening up to mobile seem to be gaining favor across the board. This has to be seen as a positive for the sector and its development.

DAVID WANG:

I believe we will continue to see significant growth in bettors and betting activity across all regulated markets. At the end of the day, sports betting is a form of entertainment that consumers very much enjoy and will adopt further. There are a number of states where I’m optimistic we will see good progress in over the next 12 to 18 months, including Virginia, Ohio and Arizona, but every situation is fluid and there is work still to be done.

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BRANDON WALKER:

Player props and stats are clearly the biggest growth areas for not just us, but also the industry as a whole. In the US, players are king, and being able to look at a stat line to try and find an edge on Steph Curry's three-point shots or Tom Brady's passing yards is a huge hook for punters. Niche sports are also a huge opportunity. NASCAR, college sports, UFC, golf and the Olympics will all gain plenty of interest this year, especially given the sheer number of categories US athletes dominate. Soccer is another big growth area, especially given the emergence of the Hispanic demographic in terms of betting. Horse racing is another vertical we’ve got our eye on. Fixed odds and tote betting offers plenty of scope for further expansion. I definitely believe the swift resolution of a horse race offers a completely different experience to a three-hour football game. After all, it’s all about instant entertainment.

TABLE TRAC

ALL IN ONE AND ONE FOR ALL Eric Cunningham, training and marketing manager for Table Trac, explains the benefits of cashless gaming for casinos, and how they can now offer a true one-card or cardless solution.

ERIC CUNNINGHAM

Coming out of a tumultuous year of change, casinos are finding new ways to interact with their customers and demonstrate that they are still safe places for entertainment and enjoyment. Properties across the nation are discovering that there are no simple solutions. Tribal casinos have led the way to re-opening businesses in many states, and set the standard of how to do this successfully while using automated social distancing tools, acrylic dividers, and a lot of hand sanitizer. A year in, and many properties are getting back to normal. Many are looking for solutions by moving their operations into the digital age with longer lines and higher cash-handling volume. Digital applications offer a wide range of functionality and endless marketing possibilities. With older generations beginning to embrace smartphone technology as a staple of daily life, many casinos are looking to mobile 42 GAMINGAMERICA

applications for a solution to long lines as well as cash and ticket handling, thus creating a more manageable form of player interaction. While many casinos have had mobile apps for years, new innovations expand their functionality and transform a player's phone into their player card, promotional rewards kiosk and wallet. Through mobile geolocation data, apps open a plethora of marketing opportunities for any size property. Marketing departments no longer need to rely on sending costly mailers and postcards to generate visits; they now have direct access to their players at any time. They may now send targeted promotions to players near the casino or those visiting a competitor's property. This same location data helps to create unique on-property experiences for players. As players come in, they can now go directly to their favorite game and card onto the machine to begin playing and earning points. Players can play promotional games or claim offers without ever having to leave the slot machine. Although once seen as a method to attract Millennial players who see their phones as an extension of themselves, mobile player apps can deliver a full-service on the player's terms. No lines or social distancing at the are required, creating a safer touch-free environment and instant access to a consistent player experience across all touchpoints. Interactivity with the app and system give hosts and staff the ability to focus on top-tier players and new guests. Similar to the convenience ‘ticket in, ticket out’ once brought to the industry, cashless removes the need for cash and physical tickets, while allowing players to move between games at their own pace. Players can use the mobile application to securely and wirelessly transfer promotional credits or cash directly to and from a game. Players can also pay for other amenities at the property connected to the system using their mobile players’ card. Combining cashless functionality and a mobile app, casinos can now offer a true one-card or cardless solution.

LIGHTNING BOX

IN A FLASH Lightning Box CPO David Little discusses the quickfire growth in the US online casino market, with Michigan a frontrunner.

DAVID LITTLE

It was 2004 and online casinos were totally banned in the US. Lightning Box was supplying land-based games via IGT to North American land-based casinos. The Federal Wire Act was in place ensuring online gambling was a criminal act. Who could have anticipated, partly spurred on by a global pandemic, that 16 years later, North American casinos would move online so quickly? New Jersey has been somewhat of a stalwart for online casinos in the US. The state, which also allowed casino gambling in Atlantic City, first offered online casinos in 2013. We started supplying our first online games via Chartwell (later Amaya) to that state back when it first became legal. But it was a lonely affair with a limited selection of games available to players. Aside from Delaware, no other US states allowed online casinos, until Pennsylvania changed its mind in 2017 when the house passed a bill legalizing online gambling. The first online gaming sites dipped their toe in the water with sportsbooks launching in May of 2019. Pennsylvania online casinos are now in full swing with a number of options for players to choose from. It was reported that their revenues 44 GAMINGAMERICA

doubled halfway through 2020. Pennsylvania, however, has a hefty online casino tax rate of 54%. On 22 January this year, the Michigan Gaming Control Board (MGCB) officially launched online casino gaming along with online sports betting and online poker. By rolling out the entire iGaming suite, Michigan became the first state in the US to launch all three verticals at the same time. The only other two states to have all three offerings are New Jersey and Pennsylvania. Eight big name online casinos opened including BetMGM Casino, Golden Nugget and BetRivers Casino. These have each partnered with an existing casino licence holder such as MGM Grand Detroit, Motor City and Little River Band of the Ottawa Indians. Michigan has been especially interesting with its opening. IGaming and sports betting operators reported $42.7m in gross receipts for the first 10 days alone since launch. With the state’s population nudging 10 million, it is sure to be a huge market for the sports-loving state. As the MGCB is looking to authorise more casinos with approval to operate, and the fact that it is the first Tribal market to go live, it has been the talk of the town across many iGaming suppliers and operators. With the early success of Michigan, we are likely to see more US states legislate and open up iGaming and sports wagering to its residents later this year. The rumoured states thus far to have iGaming on their radar include the likes of Indiana and Ohio. It’s not entirely all about the US, though. Just across the border, the Canadians have a growing online market of their own. There has been substantial growth in the number of available games on state-run operators like the British Columbia Lottery Corporation (BCLC), Loto-Québec and Ontario Lottery and Gaming Corporation (OLG). The US and Canada combined still have a long way to go before they match the depth and variety of the more established European markets. Suppliers like us have a job on our hands. We need to ensure we are getting the right distribution deals and obtaining the right certifications with the authorised testing laboratories in the multiple legislative markets. But what is clear is that there is exponential growth on its way in the North American markets. With that, we’ll likely see a transition of iGaming power cross over abroad.

ACTION 24/7

WHERE THE ACTION IS Tina Hodges, CEO of Tennessee startup Action 24/7, discusses with Ezra Amacher what it takes to outslug the biggest operators in sports betting.

When Tennessee launched online sports betting last November, DraftKings, FanDuel and BetMGM were joined by a home-grown startup sportsbook named Action 24/7. The brainchild of veteran fintech exec Tina Hodges, Action 24/7 is out to prove that regional sportsbooks can compete with the biggest operators in the game. Hodges recently chatted with Gaming America about her journey into the sports betting space, where she shared what makes the Tennessee market ripe for growth, her frustration with sportsbook customer service and why she feels lonely operating out of her home state.

a local sportsbook. I grew up in financial services, or the more cool name fintech as it’s known these days, and after my nursing career, I knew my skill set as an executive and an operator would be a good match for an online sportsbook.

What is the brief origin story of how Action 24/7 came to exist?

Had you been following the expansion of sports betting before it became clear that Tennessee would join the fray?

I knew immediately when sports gambling was to become legal in Tennessee that I wanted to launch 46 GAMINGAMERICA

What motivated you to step into the sports betting space? I've been working in fintech for 20 years, and multi-state online for the past five years. I know I am uniquely positioned as one of few Tennesseans that could succeed in this exciting venture.

Yes, of course, I was following the PASPA case closely.

ACTION 24/7

As someone native to Tennessee, what advantages does that provide you compared to operators who are from out of state? We've found that players respond very positively when they find out that there is a local sportsbook that is licensed and legal. I can't tell you how many times I've heard, "Why would I bet with someone else when you're from Tennessee." We've had the opportunity to get out and meet players all across the state. We offer events that other sportsbooks don't simply because we know what's happening in Tennessee.

Tennessee is the only state with an entirely online and mobile sports betting environment. From an operator’s perspective, what are the benefits of being exclusively online? I don't know if there are advantages or not to being online only. I've only experienced the online model. I've run a retail business for 20 years at a peak of 1,400 employees, so I can imagine it would be similar running a retail sportsbook.

How does your experience as CEO of Advance Financial influence and impact your role at Action 24/7? I've been the CEO and CXO of Advance Financial since 2013. It's the CXO, or chief experience officer, skills that are really coming into play at Action 24/7. I was surprised to see how poor the service is in the sports gambling industry. Our players are delighted that we answer the phone and solve issues on the first call. I think we were all surprised to see this news coming out of NJ about sportsbooks delaying withdrawals and even incentivizing players to cancel withdrawals. We are the only sportsbook in Tennessee to offer same day pay, cash deposits and cash withdrawals. The service sports gamblers get in Las Vegas is top notch, but I haven't found that it’s the same for online sports gamblers. We are certainly changing the customer experience here in Tennessee.

What was the turnout like for the Super Bowl? How do you expect it to compare to March Madness? The Super Bowl was definitely a big day for all of us. We are still so new and we’re registering new customers every day. I wouldn't be surprised if we don't have some days in March that are larger than the Super Bowl, though. Our book is just growing so much larger. It would make sense for us.

Is there still untapped potential in the Tennessee market for customer acquisition? I believe there is definitely more potential in Tennessee. There are lots of players still working with unlicensed

TINA HODGES

sportsbooks. They've heard the stories of the licensed sportsbooks holding money and not paying out games for several days. When we tell them about our same day pay and cash deposits and withdrawals, we win them over. We've got a long way to go to bring all of those bettors out of the shadows and into the regulated market, but we're doing it.

Does Action 24/7 have plans to expand to other markets, particularly as other Southern states consider legalizing online sports betting? Life moves so quickly. I want to provide the best possible experience to players in my home state before I go to another. But it's not out of the question; just not right now.

As a female president of a sports betting company, what improvements have you seen in the industry regarding gender equality? What if any areas does the industry need to improve on when it comes to promoting women employees and entrepreneurs? To be honest, I'm a little isolated here in Tennessee. I'm the only sportsbook executive and operator here. Because of COVID, I've not been able to attend any national conferences and meet other women in gaming. I'm looking forward to that in the coming years. Generally speaking, and considering how to build successful work teams, men and women think differently. We analyze and respond to challenges in different ways. All companies benefit from diversity on teams of all levels. GAMINGAMERICA 47

AINSWORTH

TIMING IS EVERYTHING By illustrating a case study of a delayed launch, Ainsworth director of product marketing and strategy Mike Trask discusses with Ezra Amacher the ever-increasing need to stand out from the crowd. One year ago, Ainsworth Game Technology was on the cusp of launching its A-STAR Curve series when Covid-19 took the world by storm and brought those plans to a halt. The setback was so sudden that the company had already loaded cabinets onto trucks all set to debut at NIGA Indian Gaming Tradeshow & Convention in late March 2020. In the coming weeks and months, Ainsworth made an almost seamless transition to a remote environment. Microsoft Teams joined email as the de facto form of communication. Large in-person gatherings were replaced by live event broadcasts streamed on YouTube. Behind the scenes, gaming developers fastidiously worked at boosting the company’s library of titles. By the time the launch occurred in late 2020 in several American markets, the company had enhanced the cabinet’s content. “The time period of a stunted launch really gave significant ability and time to develop some very cool games that you’re starting to see on physical floors now,” says Mike Trask, director of product marketing and strategy. “Here we are a year later. We have launched A-STAR Curve successfully in a number of different markets, and we have well over a dozen unique titles that we’ve developed throughout this period for the cabinet. We’re starting to see some tremendous return on investment from customers as players to return to casinos and they find some incredible new games.” This is the first cabinet release from Ainsworth since 2017, and with a 43-inch curved screen, it’s very hard to miss on a casino floor. What also makes it stand out is the array of games designed exclusively to fit the cabinet’s design. “We’ve really kept in-tact the play mechanic and some of the math that we think makes them successful,” says Trask. In recent years, Ainsworth has tapped into other markets like Class II and historical horse racing. The latter was developed through an agreement with Kentucky-based Churchill Downs, which placed about 1,000 terminals at Derby City Gaming in Louisville. HHR quickly garnered controversy in the Bluegrass State, with some customers even filing lawsuits to recover losses. Such scrutiny led Kentucky lawmakers to pass a bill this year redefining pari-mutuel wagering to include historical horse racing (HHR), thus ensuring legality of the machines. Kentucky Governor Andy Beshear signed the bill into law in late February. All the while, HHR popularity continues to rise in several markets, leading Ainsworth to add 105 terminals at Rosie’s Gaming Emporium in Richmond, Virginia, late last year. 48 GAMINGAMERICA

“We have at this point more than 100 different historical horse racing titles available,” Trask says. “The ability to make a strong title that players are going to love really shows the breadth of talent at Ainsworth. So that's been a vital part of our business over the last couple years.” Another area where Ainsworth has made headway recently is intellectual property and third-party branded titles. The company tried out two Pac-Man games in 2017, and the response was so strong that they became two of Ainsworth’s most successful titles of the last five years. In March, Ainsworth will roll out another one called Pac-Man Wheel. “The power of Pac-Man has been tremendous,” Trask says. “It’s just a brand that everybody recognizes. It seems like everybody who has worked on the game or been part of developing it had some nostalgic memory of playing Pac-Man in an arcade as a kid, or playing it on an old video game console. Our game development team has done a tremendous job utilizing those sights and sounds of Pac-Man to make a very compelling gambling experience.”

A-STAR CURVE

PACE-O-MATIC

SETTING THE PACE By launching a diversity and inclusion initiative to help minority-owned businesses, Pace-O-Matic helps customers recover from pandemic shutdowns. Michael Bartlett finds out more from CEO Michael Pace. The coronavirus pandemic has not only killed millions around the globe, related shutdowns instituted by health authorities have dramatically affected businesses of all shapes and sizes, and Pace-O-Matic is doing all it can to help its customers. Pace-O-Matic is a Georgia-based developer and producer of legally compliant, coin-operated skill games. These games have been placed in bars, restaurants, fraternal clubs, veterans’ organizations and numerous types of small businesses over the past 20 years. Michael Pace, founder of the company, said these games do more than provide entertainment; they are an important resource of revenue for small businesses in the markets they serve. “We hear from owners of bars and restaurants, convenience stores and other small businesses that without the revenue generated from our skill games, they would have shut their doors for good,” Pace said. “The COVID-19 pandemic, combined with state and local restrictions, has impacted and harmed these businesses and organizations more than most. “Never in our two decades of existence has our vision for ourselves and our customers been more important than it is now as we work through this ongoing pandemic,” he added. One operator told Pace that his customers, bar and restaurant owners or those who run social clubs, have described Pace-O-Matic skill games as a “lifeline during these hard times,” helping them stay open while they face revenue gaps from the months they were closed and when customer numbers were limited. They know they will continue to need revenue from skill games because “business as usual” will not return for a long time.

Other examples of giving include Wyoming, where the company delivered a custom, handicap-accessible van to a family with a child with disabilities after their van was stolen, and it financially supported first responders to the Mullen Fires. In Virginia, company representatives distributed more than 3,500 meals to those struggling from COVID and focused on needs of homeless youth. “I believe it is important to give back,” Pace said. “Family is the fabric of Pace-O-Matic and an inclusive environment within and outside our company is paramount.”

DIVERSITY AND INCLUSION INITIATIVE In early 2020, Pace-O-Matic launched a diversity and inclusion initiative. Pace said the goal is to encourage, support and provide assistance to underserved communities – specifically, minorityowned businesses so they can grow and flourish. “Minority-owned businesses have suffered disproportionately in a crisis that is killing non-white Americans at higher rates and eliminating more of their jobs,” Pace said. “Diverse businesses have been disproportionately impacted by the pandemic.” For example, Pace noted the number of working Black entrepreneurs in the US plunged by 40% as the coronavirus shut down large parts of the economy. “COVID-19 has exacerbated financial issues for minorities. Our goal is to increase the number of minority-owned businesses operating skill games by 50% this year,” Pace said. As states struggle to balance their budgets, Pace said he hopes elected officials know they can count on skill-game tax money to fill the gaps.

DONATIONS TO FOOD BANKS Thousands of businesses have closed across the country because of COVID, leaving countless people without jobs. Pace-O-Matic is doing what it can to help those who are struggling, including tackling food insecurity by making donations to food banks and handing out meals in states in which the company has a large presence. In Pennsylvania, the company made a donation that provided the equivalent of 750,000 meals. At one hard-hit community in the Keystone State, it handed out hundreds of turkeys before the holidays, Pace reported. “From 2019 to 2020, we contributed $3.5m to local nonprofits, charities and specific families in need,” Pace said. 50 GAMINGAMERICA

MICHAEL PACE

BLUBERI

THIS WAY TO PRODUCE Gaming America gets a few minutes with Andrew Burke, CEO at Bluberi, to talk about exciting new products in the pipeline and growth for the company. What product launches can we look forward to from Bluberi? We are currently re-working our Novus cabinet, and will have 10 new games coming for that cabinet in 2021. In addition, we’ll launch three other brand new cabinets this year. Two of them will come from our recent collaboration with Bzillions, the team led by Steve Weiss, inventor of the iconic Big Red game that you may already be familiar with from AGS. These games are unlike anything seen on a casino floor today and will be out later in the year. We are also developing a new cabinet internally and are looking forward to showing it at G2E in October.

What consumer themes or trends are particularly exciting at the moment that Bluberi is capitalizing on? We feel that there has been a lack of innovation in the space in recent years. Casino floors are starting to look homogenous, with many games and cabinets looking very similar. Rather than following trends in cabinet design or game theme, we see this as a chance for Bluberi to stand out. We believe that new, younger players will gravitate toward the unique, easy-to-understand games that we are working on with Bzillions in particular, and that will help us carve out a niche that others may try to copy in the future. This year is about Bluberi differentiating itself, not following trends.

What are your growth strategies this year considering market unpredictability? Are you seeing a lot of M&A opportunities? We are bullish about the back half of the year, with all three of our new products launching between July and December. We are focused on controlling the things we can, such as becoming the easiest company to do business with, and engaging with our new and current customers to become a company they truly enjoy and look forward to working with. We are also looking at M&A opportunities and are in a good position to take advantage of those if the right fit comes along.

What emerging markets or regions look particularly attractive? As a company, Bluberi has a ton of white space in front of it. We only hold about one third of the available licenses in the US and are looking to gain more of those markets that are still new to us. We are excited to announce that we were recently licensed in Arizona, for instance, and looking forward to gaining licenses in many other jurisdictions, as well. We have tons of opportunity in front of us and are looking forward to capitalizing on all of it in due time.

ANDREW BURKE

Can you describe how the competitive landscape is evolving? We are looking at perhaps the most competitive landscape ever in the casino gaming space. Many smaller companies such as AGS, Everi and Incredible Technologies have grown to compete with the historically larger players such as Aristocrat and Konami, and have left a void that Bluberi and other companies of similar size can fill quite nicely. The market is competitive, but there is room for all of us. That is where our strategy of creating unique and innovative products will come in and set us apart.

Trusted relationships have always been a priority, but how has that importance been intensified in light of increasing regulations, social restrictions, and strains on demand and production? Relationships are still a priority, perhaps now more than ever, when it is more difficult to be in the same room with our customers, showing live product and demonstrating our commitment to the business. To that end, we have focused on strengthening #our sales team, bringing on seasoned and trusted talent such as Casey Whalen, our chief commercial officer, Steve Kohon, VP of sales, western region, and Mesa Whitehurst, VP of sales, eastern region. The relationships and industry knowledge the three of them bring to the company is hard to overestimate. We have also hired industry veterans to lead just about all our business functions, so we take a fresh approach to how we do business with vast and unparalleled knowledge of what does and does not work in this space, and how we can do things better. GAMINGAMERICA 51

LAS VEGAS: NEW HORIZONS

AHEAD OF THE GAME Despite the ongoing economic and health crises, Las Vegas will see two major new market entries in 2021 with international gaming giant Genting debuting Resorts World and Mohegan Sun, the Tribal gaming operator, running the casino at the new Virgin Hotel. Will these statements set a tone of revival for the next decade? Oliver Lovat of the Denstone Group consultancy, which has a focus on casino resorts, explores why Las Vegas still has allure for gaming and hospitality operators, and why these new openings could herald a new age. Some Las Vegas historians cite the importance of Howard Hughes in the evolution of Las Vegas. However not one of the six casinos he acquired is still standing today. Yet the lessons of Hughes’ legacy in portfolio ownership have gone unheeded. To recall The Strip in the 1990s, the key features that enabled growth were innovation and diversity in property ownership. 52 GAMINGAMERICA

The dominant corporations were Mirage Resorts and Circus Circus Enterprises, who held three casinos each. Caesars World/ Park Place was constantly trading ownership up and down The Strip with Starwood and Hilton. Kirk Kerkorian’s second MGM Resorts posed a challenge from 1993 as well as various publiclyowned and operated companies like with Harrah’s/Promus’

LAS VEGAS: NEW HORIZONS

Holiday Inn, Boyd’s Stardust, Aztar’s Tropicana and Coast Resorts. Even a few privately-owned properties existed, such as Engelstad’s Imperial Palace and Jack Sommer’s Aladdin. Today, after a two-decades long acquisition frenzy, Caesars and MGM Resorts operate nine properties each on the resort corridor. As Hughes’ experience proved, consolidated ownership has led to a series of challenges. In theory, within portfolio ownership, centralization of corporate functions allows efficiencies in operations and management, leading to cost reductions. However, casino ownership is not linear in terms of performance. Adding 100% more rooms does not necessarily offer 100% greater revenue. Moreover, operating multiple properties poses investment challenges as, for example, in many cases, capital investment in Caesars Palace or Bellagio will drive a higher ROI (based on property customer’s REVPAR) to shareholders than investment made in Paris or The Luxor. We also note that innovation and advancing the business model has come from new players to market, notably Sheldon Adelson’s Venetian with its focus on conventions, and The Cosmopolitan in bringing in younger, urban customers. In many cases, when specialist operators have opened resorts seeking to attract non-traditional customers, this has proved challenging. In recent times, Station Casinos, the specialist in operating local’s casinos, renovated and repositioned The Palms, and historically, Circus Circus Enterprises developed The Luxor to compete against the Mirage. Thus, in a post-COVID environment with a scarcity of capital, holding a portfolio of properties in Las Vegas is the legacy position of opportunistic transactions, rather than good business principles and planning. With the confluence of COVID-19 and emergence of REIT ownership, the opportunity and timing may be right for operators to rationalize their Las Vegas interests and enable new investors to market, with the benefits of new investment, new customers and new revenues.

THE DESERT GIANT With over 450 casinos of various shapes and sizes in over 40 states, gambling in Las Vegas is no longer a novelty reserved for Nevada. Internationally, Macau generates many multiples of gaming revenue compared to what Vegas’ $10.4bn does, with Singapore behind. But there are more reasons than just gaming to be in Las Vegas. Las Vegas is unique. Pre-pandemic, national occupancy rates stood at 66.1% compared to 88.9% in Las Vegas. Las Vegas has over 150,000 rooms, with a further 5,000 rooms due to open throughout the course of 2021. By comparison, New York has 138,000 rooms and Greater London has 110,000. The 42.5 million annual visitors comprises of 14% international, 21% from California and 6.6 million conventioneers. The average visitor comes 1.7 times per year. Las Vegas is also centralized by geography and diverse in opportunity, unlike other major tourist cities. New York is highly granular and in Orlando,

SHELDON ADELSON

“FOR THE FIRST TIME, A MAJOR ASIAN OPERATOR AND A NATIVE AMERICAN TRIBAL OPERATOR ARE COMING TO LAS VEGAS TO CHALLENGE THE ESTABLISHED ORDER. SHOULD THEY PROVE SUCCESSFUL, GENTING AND VIRGIN WILL HERALD THE BEGINNING OF A NEW WAVE OF CREDIBLE OWNERSHIP AND UNPRECEDENTED INVESTMENT IN LAS VEGAS, WITH MUCH OF TRIBAL AND REGIONAL GAMING WATCHING AND WAITING TO SEE WHAT HAPPENS.” GAMINGAMERICA 53

LAS VEGAS: NEW HORIZONS

for instance, much of the most profitable elements in the market are operated in verticals by the likes of Disney. With a strong, diverse, regular and loyal customer base, the Las Vegas market is highly attractive and should be at the forefront for any serious hospitality operator. In terms of gaming and casino operators, the model has changed over decades. As noted, MGM Resorts built its business outwards with an established Las Vegas presence before expanding to regional markets. But we note that many of the main successes in Las Vegas are rooted in local and regional gaming. Perhaps the best example of the “hub and spoke” model is Harrah’s, which operated in key regional markets before coming to Las Vegas, via a strategy of acquisition, enabled by controlling customer behavior

THE FREMONT STREET EXPERIENCE

via its loyalty platform. Harrah’s acquired Park Place to form Caesars Entertainment, which was subsequently acquired by Eldorado Resorts, another regional gaming company. Boyd Gaming, rooted in Downtown and the Las Vegas suburbs, exported its model to regional markets as gaming proliferated across the country. Penn National, also via acquisition, developed a strong regional casino platform before coming to Las Vegas.

THE NEW WAVE The 2021 arrival of Resorts World and Virgin differ from past openings. Importantly, for the first time, a major Asian operator and a Native American Tribal operator are coming to Las Vegas to challenge the established order. Should they prove successful, Genting and Virgin will herald the beginning of a new wave of credible ownership and unprecedented investment in Las Vegas, with much of Tribal and regional gaming watching and waiting to see what happens. The Chickasaw Nation operates Winstar in Oklahoma, the largest casino in the country. Other Tribes, including the Manuel Band of Mission Indians that operates San Manuel Casino, Pechanga Tribe of Luiseno Indians and Choctaw Tribe, could all follow the Seminole Hard Rock in expanding their footprint. Native American Tribes are the quiet giants in hospitality. They all have established customer databases, available capital, experienced management teams and operational expertise, to the extent that entering Las Vegas, with a transparent and open regulatory process, should be relatively straightforward. Genting is relatively unknown in the USA but is a giants in Asia. It owns Genting Highlands, the largest resort in the world and Resorts World Sentosa in Singapore, only one of two casinos in the country. Genting is only one of several Asian colossuses with unlimited capital, with the potential to transform Las Vegas. If Resorts World proves successful, expect Asian interest in Las Vegas to be reignited.

AIMING TOWARD 2031

“IN A POST-COVID ENVIRONMENT WITH A SCARCITY OF CAPITAL, HOLDING A PORTFOLIO OF PROPERTIES IN LAS VEGAS IS THE LEGACY POSITION OF OPPORTUNISTIC TRANSACTIONS, RATHER THAN GOOD BUSINESS PRINCIPLES AND PLANNING.” 54 GAMINGAMERICA

The COVID-19 crisis has led operators to review their business models and reassess their holdings in Las Vegas. The first realization was initially evident 50 years ago, that holding a portfolio of casino assets is not effective and does not offer shareholders best value. It causes challenges in capital investment, diminution of value and leads to a lack of innovation. For those not currently in the market, a presence in Las Vegas offers a significant upside in revenues, status and investment diversification. These incentives together signal that there may be a time of great change ahead. With more operators and increased competition, this outcome is good for customers and for Las Vegas itself, and will sharpen operator strategies with no more debacles such as parking fees. If 2021 proves successful for Genting and Virgin, expect to see a very different Las Vegas by 2031.

NCPG

THE MADNESS OF MARCH Keith Whyte, executive director of the National Council on Problem Gambling (NCPG), discusses March Madness, college athletes and responsible gambling in the US sports betting market. As legalized sports betting spreads rapidly across the US, one area that highlights the responsible gambling challenges facing operators and vendors is the role of college athletics in the US. Betting on college sports, and the performance of unpaid, amateur athletes is a major part of the US market. The National Collegiate Athletic Association (NCAA) reports approximately 500,000 college student athletes compete in organized events. In 2019 $8.5bn was bet just on the 68 teams in the NCAA men’s basketball tournament. NCAA regulations prohibit student athletes from betting money on any sporting event (college, professional or otherwise) in which the NCAA conducts collegiate championships. While NCAA rules prohibit betting on sports in which the NCAA conducts championships, an ongoing series of large studies since 2004 consistently find roughly one quarter of male student athletes report betting on sports, with almost 10% wagering at least monthly. Also, a majority of male student athletes consistently report troubling beliefs about gambling, including that athletes in college violate NCAA sports-wagering rules; sports wagering is a harmless pastime; and people can consistently make a lot of money gambling. The same series of studies found approximately 2% of male student athletes – over 5,000 players – disclosed they met criteria for gambling problems. The majority of the discussion to date has focused on concerns about protecting the integrity of the game and the majority of prevention and education on an enforcement-heavy approach. And indeed, the NCAA’s own research finds nearly 1 in 20 Division I men’s basketball athletes report having been contacted for inside information. However, one of the biggest risks for match fixing is an athlete – or someone with influence over the player such as a teammate, roommate, coach, trainer or referee – who has a gambling problem. An uncontrollable urge to gamble despite mounting negative consequences is a hallmark of gambling addiction, yet there may be few outward signs until it’s too late. When NCPG created Problem Gambling Awareness Month almost two decades ago, we chose the month of March to highlight concerns about legal and illegal sports betting during one of the highest-profile betting events in the country. For most, the moniker “March Madness” is evocative of the fun and frenzied fandom that accompanies this nationally televised single-elimination tournament. However, March Madness also captures the shame, stigma and stress for those who 56 GAMINGAMERICA

KEITH WHYTE

suffer from severe and even life-threatening gambling problems due to their betting on college basketball. Few colleges have comprehensive problem gambling prevention, education or treatment resources. The average per capita government funding at the state level is less than 25 cents. This creates a challenging responsible gambling environment. Right now, gambling companies find themselves taking bets on college games from states and schools with little or no dedicated funding for problem gambling prevention, education or treatment initiatives. This is a threat to the integrity of the game as well as the behavioral health of the players. It also raises fundamental questions about gambling industry sponsorships, marketing, advertising and partnerships around college athletics versus professional teams. This will also require a significant industry investment in responsible gambling to help fill in the gaps in the safety net particularly around college sports and young student athletes. NCPG is proud to be working with NCAA and other organizations such as EPIC Risk Management on initiatives to prevent players from developing gambling problems. The question is not whether there will be a gambling scandal in college athletics, the question is when. And for the gambling industry, the question is how proactive were they on responsible gambling in the jurisdictions where they were taking bets on college sports.

PXP FINANCIAL

OPPORTUNITY KNOCKS

Kamran Hedjri, CEO of PXP Financial Inc, the US branch of PXP Financial Ltd, talks to Gaming America about the opportunity US gaming's digital and cashless transformation can present to payment providers. With cashless payments being one potentially positive and longterm effect of the COVID-19 pandemic, there is optimism afoot. The US online gaming market is relatively new, which everybody is very excited about. It wasn’t quite clear how fast regulatory approvals would happen after the Professional and Amateur Sports Protection Act (PASPA) was overturned in 2018, paving the way for sports betting and how regulators would deal with it. However, skipping forward a few years, despite the pandemic, states managed to establish and pass regulation so that a framework could be put in place, which would go in multiple states. The US is certainly the place to be because it’s a super fresh market in comparison with Europe, which is increasingly saturated. The states in the US have more potential to grow when you consider they are larger than European countries. There are other markets on the horizon such as the burgeoning African online gaming market, but the US is definitely the place to be with its online presence right now. Going forward, we’ll see continued growth in the US, but right now Europe is ahead of it in terms of being the biggest gaming market in the world. Statistics show that card payments make up 20% of all gaming transactions in the US, whereas it’s 16% in Europe, yet it still holds the bigger market share right now. But the US is the market to be in and there’s going to be massive growth there. Last year we went live in nine states and it’s highly encouraging how many transactions are now taking place online – we see it on a month-to-month basis that the market is growing exponentially. The cashless transformation we’ve seen in the last year presents another opportunity. When COVID-19 started, more people went online and they began to discover how it works and they've gotten used to it. Going forward, those customers are going to be using products online in the future too and it will be a lasting legacy of COVID, which has been a catalyst for payments and allowed the industry, and society in general, to digitally transform. There is more overhead to acquiring customers and there are different marketing strategies that help to accelerate this online. Daily Fantasy Sports (DFS) and esports have been other verticals that saw growth, as stadiums were closed. It’s true that contactless payments have become an essential tool for physical venues during the pandemic and beyond it. This whole process already started pre-pandemic and we see there is

KAMRAN HEDJRI

less share of cash, which the pandemic has accelerated and now contactless transactions are increasing. There are many initiatives from Visa and Mastercard that need to use the likes of tap-to-phone so they can accept contactless payments via an Android smartphone. Then there’s Apple Pay and other digital wallets that are increasingly present in the market, plus all the initiative schemes that are integral to supporting and sponsoring the movement. To reiterate, one of the things we’re going to continue to deploy is an omni-channel offering because that’s where the demand lies; physical and online will be one experience. We do have a big point-of-sale presence in the retail and hospitality sector, and all those learnings, as we’ve used our European expertise to bring into the US, are what we’ll continue transferring to the gaming sector. In terms of challenges, aligning with regulations is always something that needs to be done and there’s a certain amount of time it takes, but, of course, all the operators want to be the first to offer in a new state so it’s important to be really on top of regulation to make sure you apply for all the licences. It’s a race against time. You also need to grow with the volumes, which continue to increase each month, so you need to adapt to make sure you have the right approach toward that. It’s a new market so there’s always a learning curve as there’s always going to be things we don’t know, and adapting to the new situations is a constant learning process. Competition is always going to be there, but that’s exciting and where innovation occurs. GAMINGAMERICA 57

THE INNOVATION GROUP

SPORTS BETTING: THE MAIN COURSE? With more states now legalizing sports wagering, the buzz around it has never been stronger since PASPA was overturned. But The Innovation Group president Michael Soll helps us explore whether sports betting itself is the entrée, or just the appetizer for players cross-sold into other verticals. Indeed, while sports betting is an activity many can partake in, that can be marketed across multiple platforms and be combined with numerous other activities, its margins are undeniably lower than other verticals. In January, New Jersey saw $958.7m in sports betting handle. This translated to $82.6m in revenue – less than 10% win. If a casino, or online sportsbook, has to give back on average over $90 for every $100 it receives in sports bets, is every dollar it receives from other revenues arguably worth more? Online slots and physical table games provide far higher margins, while every $100 spent on food, drinks or attending a show, for example, is money a land-based casino doesn’t have to give back.

HOW IMPORTANT IS CROSS-SELL?

MICHAEL SOLL

Earlier in this issue, our columnists from Dickinson Wright wrote: “Due to the thin margins associated with sports wagering, sportsbooks are offered almost as an amenity to casinos, to draw customers in to play their much more profitable slots and table games.” They provided the context of Nevada casinos offering sports wagering as part of their “resort experience,” while pointing out smaller operators might not survive on sports betting’s thinner margins. Referencing payouts ranging from 4% to 6% annually, the Dickinson Wright lawyers also factored in various other taxes and expenses. It begs the question: With all the excitement surrounding US sports betting right now, is its main benefit simply getting new customers through the door to spend on other things? 58 GAMINGAMERICA

With this in mind, how does sports betting actually fit into a casino’s strategy? The Innovation Group president Michael Soll tells Gaming America that sports betting has become an important amenity within the bricks-and-mortar environment, where it is implemented ahead of online sports wagering in many jurisdictions. He explains: “Outside of Nevada, sports betting came to the market late, just behind online casino wagering, which has emerged over the last decade. When offered online or via mobile devices, sports betting behaves a lot like other forms of online gaming, in the sense that player relationships are less personal and more intertwined in the digital marketing environment. The value of new marketing channels for online gaming had been so compelling that social sites arrived ahead of ‘for money’ play to establish player relationships and build databases. With sports betting, the marketing channels are blown wide open incorporating media companies and – now less controversially in the US – sports leagues, teams and even players themselves. Much of the value of the offering exists outside of the wagering itself. “But live sports betting in casinos differentiates itself from online wagering as it becomes more active and more social.

THE INNOVATION GROUP

While not particularly lucrative relative to slot and table operations on a pure revenue basis, sports betting attractions diversify the casino visit and add to the myriad of restaurants and entertainment options available on site.” As an added amenity and a new form of gaming, sports wagering can keep some players and parties on site longer, whether a family or a couple who may be interested in different experiences in the casino. For Soll, this helps build a casino into more of a “complete package.” Historically, this was already attempted by the casino industry with pari-mutuel racetracks. As it turned out, the crossover between a slot player and horse bettor wasn’t as high as originally anticipated. Sports betting, however, appears to be more value-added. “Sports betting can keep players on site for a while if they’re interested,” Soll says. “But there’s also a nuance. Sports betting venues also have always had an ‘easy in, easy out’ opportunity. Up until the most recently designed Las Vegas properties, there’s generally been a place where bettors can park the car, go in and make a bet, and get back into the car. This all precedes wireless and online availability, but it tells you something about the mentality of the player. There are players who aren’t looking for the social experience, they’re just looking to place a bet. I would say that is a little bit of a different player. “What has been fascinating, though, is witnessing the relationship side of the business develop, which has really seen momentum across the US in recent months." This involves the marketing channels, the flexibility of the leagues to find ways in, opening up the dialogue around integrity fees and media companies who perhaps own distribution channels for sporting leagues. Partnerships like that of Bally’s with Sinclair Broadcast Group, MGM Resorts International with Yahoo, and the involvement of ESPN, Fox Bet and various other media/sports betting crossovers are all noteworthy. Whereas the UK, for example, is now infamous for its barrage of sports betting ads and sponsorships, the US is arguably taking this a step further with shows and channels dedicated to sports betting. Odds are as integral to some

broadcasts as a coach’s pre and post-match interviews. All of these factors, according to Soll, provide a rich and up-to-date way of taking data and customer relationships to the next level. He adds: “At the end, there are companies who make quite a bit of their income on sports betting because they’re focused on it. But there aren’t many markets whose dominant source of revenue is sports betting revenue.”

THE DIGITAL VIEW In this sense, it’s easy to see the excitement around sports betting in land-based casinos in Atlantic City, Las Vegas or Mississippi, where, for instance, there is a strong correlation between sports betting and food and beverage, or other entertainment amenities. During a table game experience, a player is focused on that one game. In a sportsbook, or in a sports bar with a terminal, there can be several things going on at once: a player can have a meal while they watch sports they’re not betting on, and at the same time, watch sports they are betting on. Does this model hold up when sports betting is offered off-site, online? “It’s in its infancy in terms of trying to draw lines between the two types of play,” states Soll. “When you look at enabling legislation, it was very tempting as we started looking at new markets to offer online out of the box; however, a more conservative approach beginning with bricks and mortar seems to be prevailing in most emerging markets. But the anticipation is that over time online will be offered, whether exclusively by bricks-and-mortar operators or by opening up the market with more competitive tax rates and letting more companies operate competitively.” Online expansion will not necessarily undermine bricks and mortar or even a more widely distributed retail product. Suzo Happ’s Tim Kennedy recently told the GI Huddle there will always be a place for retail sports betting, especially in the US. While land-based revenue is currently the dominant force, many are projecting online will offer the bulk of gaming revenue in the long term. That, however, would still leave a large chunk of earnings to be had at physical casinos and sportsbooks, so there’s a balance between not missing out

“IS THERE GOING TO BE M&A ACTIVITY IN THE INDUSTRY DRIVEN BY MASSIVE MEDIA COMPANIES HAVING A HAND IN SPORTS BETTING? WE’VE ALREADY SEEN SPORTS RELATED COMPANIES BEING CROSS-POLLINATED WITH TRADITIONAL GAMING COMPANIES, LOOKING AT THE EXAMPLES OF PENN NATIONAL AND MGM RESORTS.”

GAMINGAMERICA 59

THE INNOVATION GROUP

on online and still capitalizing on retail. As far as online is concerned, The Innovation Group doesn’t simply see sports betting as a gateway to other forms of gaming. Crucially, Soll concludes: “Sports betting stands up on its own and it’s driven by a different player.”

CANNIBALIZATION So far, we’ve established that sports betting serves multiple purposes. And if it does stand up on its own, that is perhaps reason enough to pursue it as a vertical. Still, its revenue totals are smaller, tax rates are higher and margins are lower, so as a consequence, could there be a downside to offering sports betting? Could this lower-margin vertical, for example, cannibalize revenue from slots, blackjack or roulette? “If we take online in general, we’ve been trying to measure cannibalization for about a decade now,” Soll explains, widening the topic beyond sports betting to add some initial background. “When it hits a market, online gaming and accessibility in general – not just sports betting – there was quite a bit of fear there would be significant cannibalization. But even from the early days, it never really hit the double digits. It was always high single digits or lower. And if you really carefully look at net across all revenue centres, in many cases it was mitigated by other areas in the property or other online channels. So you’ve got less of an impact than intuitively people thought it might be. “Enter sports betting and I’ve not seen a great deal of statistics yet. As most of the sports betting markets have started to ramp up, other than New Jersey, we ended up in the middle of COVID-19 and lost the ability to see what’s happening on site. If you look at New Jersey, it was also still influenced by people entering from other states. But Atlantic City’s recovery, for example (as we explored in the last issue of Gaming America) has occurred with growing sports betting revenue and online revenue.” We may start to see more shifts in cannibalization when there are four or five neighbouring states offering legal sports wagering, Soll adds, with no imported income. But for now, the data certainly suggests sports betting has co-existed well with its counterparts – both online and at bricks-andmortar properties.

THE FUTURE AND M&A Sports betting margins are lower, yes, but as Soll has explained, “it has become a game changer amenity for casinos that want to offer the ‘next big thing.’" In that sense, it may well be considered as much a marketing tool as a revenue generator. But if the media and entertainment relationships in sports betting significantly influence the makeup of the sector, Soll feels sports wagering may have the power to change the shape of the industry altogether. “How much do single-channel or product operators in gaming become the dominant companies in the space going forward?” he wonders. “Is there going to be M&A 60 GAMINGAMERICA

activity in the industry driven by massive media companies having a hand in sports betting? We’ve already seen sports betting companies being cross-pollinated with traditional gaming companies, looking at the examples of Penn National and MGM Resorts. I think it’s interesting, if you dial back to before the entry of online, the dominance among gamingcentric companies was borne out between casino operators, slot manufacturers, route operators and the like. Now the lines between casino operators, online operators and sports betting operators are blurring. “Still, the gaming industry remains dominated by companies offering gaming. Large cap operators have not become competitive as stand-alone resorts or entertainment companies, or been absorbed by them. The question with sports betting is will there be a shift in dominance to a different industry that starts to overwhelm what we think of as the gaming industry now? Look at the massive companies who have now taken an interest in sports betting. We think about it in terms of what makes up the ecosystem of the industry and how does that picture change over time. Sports betting could have a role because it’s so involved in media, which is such a powerful industry.” This is a concept The Innovation Group is not alone in exploring, with Joe Kustelski, co-founder of Chalkline Sports, recently telling Gaming America the future of sports betting is intertwined with media companies. So perhaps the next time you read about the latest state to legalize sports betting, or the latest NFL team to partner with a sports betting operator, it’s worth comprehending the buzz for the wider interests it represents. From a pure revenue point of view, sports betting has been vital in helping revitalize New Jersey and generate invaluable tax revenue in states across the US. But it’s still a relatively small earner, while its relationship with the rest of the gaming industry is a complex one. Perhaps we can conclude it is not gaming’s main course for now, but nor is it just a free appetizer to get customers spending elsewhere. Sports betting is a low-margin, high-impact business, one that affects all other parts of the ecosystem, and one that could some day completely transform that ecosystem itself.

“IN BRICKS AND MORTAR, IT HAS BECOME REALLY IMPORTANT AS AN AMENITY AT THE PROPERTY. WE’RE ALWAYS LOOKING FOR THE NEXT BEST RESTAURANT AND ENTERTAINMENT CONCEPTS.”

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SPRING INTO ACTION Gaming America gets you dialed into the latest and most exciting products on the market as we emerge from a long, cold winter.

BETOMALL: BETOMALL BETTING PLATFORM

allowing deep-level management of the content on the web page. Flexible templates and themes allow operators to edit, extend and even create themes from scratch, meaning they can be involved as little or as much as they prefer. With the Betomall editor, operators can run multiple templates or themes simultaneously across different devices, countries, domains, and languages, retaining ownership of their own artistic and technical contributions.

ARISTOCRAT TECHNOLOGIES, INC.: TIMBER WOLF DIAMOND BETOMALL Betomall was established in 2012 as a software developer to provide a comprehensive system for sports betting operators. Integrated with the leaders in sports data as well as with the most prestigious live casinos and games, Betomall betting platform offers a turnkey solution for betting operators. The users can access the sportsbook on a range of devices. It can be installed on betting terminals, mobile applications on handheld devices such as smartphones and tablets running Android and iOS operating systems, or through a browser on personal laptops and computers. Continuous development ensures that both the web and mobile applications are always compatible with all the updates of the web protocols and mobile operating systems. The Betomall sportsbook fully integrates most widely used payment solutions. Paired with a centralised accounting system, this ensures that all payments are processed quickly, securely and comply with any financial and security standards imposed by tax and gaming authorities. The operators can customise the sportsbook with powerful administrative tools. The back office is a powerful web-based administrator's interface, which allows the operator to overview and modify all aspects of the operation through countless reports and risk management tools; such as managing the betting coupons, monitoring the odds, monitoring and authorising the bets, adjusting betting limits and settling the bets, as well as overviewing detailed sales reports from all agent and subagent systems. The latest development has been the creation of Betomall editor, a powerful content management system (CMS) tool, 62 GAMINGAMERICA

TIMBER WOLF DIAMOND Players will be excited about Aristocrat’s Timber Wolf Diamond, an all-new version of the player-favorite Timber Wolf. It’s also the latest evolution of one of the industry’s top-performing games, Buffalo Diamond. The characters and symbols players love from Timber Wolf are all here, along with an incredible lineup of new features. Timber Wolf Diamond offers players an astounding 2,400 ways to win, along with four fun levels of cumulative free games with a 2x to 4x multiplier. This, combined with Timber Wolf’s classic 3x and 5x wild re-spin feature, means Timber Wolf Diamond creates new boundaries of volatility and excitement. The game is complete with a $500,000 MSP grand jackpot. Timber Wolf is featured on Aristocrat’s all-new and groundbreaking Neptune Double cabinet, which is supercharged with stacked and curved 49-inch monitors, 4K graphics, expansive

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virtual button deck, and an all-new custom-designed and adjustable sound chair. Ergonomics reach new heights with the Neptune Double as well. For example, meticulous design resulted in a perfect screen angle, so the player can look straight up and see the top progressive meter. Timber Wolf Diamond has a minimum bet of 100 credits, a max bet of 700 credits and is a high volatility game designed with features that players know and love.

GAN: SIMULATED GAMING

If operators are interested in a fully managed online gambling solution, or looking to augment existing customer service and marketing programs, GAN’s operational services teams have the local and global experience to support those needs. GAN’s platform has a demonstrable track record of operating across multiple states, with live operations in New Jersey, Pennsylvania, Nevada, California and Michigan, and soon to be Ohio, Tennessee, Colorado and Virginia. GAN is poised to bring many of America’s casinos online utilizing the enterprise technology system first deployed in 2002. The company recently raised more than $60m in expansion capital, and in January 2021 it acquired Vincent Group plc., a European B2C gambling provider known as Coolbet. GAN will bring Coolbet sports engine technology to the US to complement GAN’s B2B platform suite of services.

NETENT'S FLAGSHIP TITLE: DFM

SIMULATED GAMING GAN offers a turnkey platform that supports both real-money and social casinos all over the world. Its universal platform and patented process deliver higher conversion rates, better payment processing success rates, a flexible choice of integrated sports betting modules, a mature and fully featured internet casino, and the proven ability to deliver integrated convergence to leverage casino operators’ on-property rewards programs. GAN has developed its experience and expertise working with several global and US internet gambling operators. The list of clients that use its platform for real-money gambling include FanDuel, Ocean Casino & Resort, JACK Entertainment, Wynn Resorts, and Churchill Downs Incorporated. GAN also offers a B2B social casino solution for the US market branded as Simulated Gaming that leverages existing reward programs, to offer patrons a social casino experience while generating incremental online revenue and driving visits to on-property venues. Native American operator clients of Simulated Gaming include San Manuel, Chickasaw Nation, Agua Caliente, Snoqualmie, Oneida Nation and the most recent addition, Seneca Gaming Corporation. GAN's proprietary compliance program and continuous global monitoring system allow operators to move online confidently. It has a US-patented framework and reputable specialist teams, along with managed services for marketing (customer acquisition and retention) and customer service.

DIVINE FORTUNE MEGAWAYS American players can now play a title that gives a Megaways makeover to an all-time NetEnt classic. Divine Fortune Megaways, one of NetEnt’s most successful game releases of 2020, is now available in the US after going live with operators in New Jersey and Pennsylvania. NetEnt has taken its original Divine Fortune title – which was the No.1-ranked online slot in New Jersey and Pennsylvania in 2020, according to iGaming Tracker – and adds the popular random reel-modifying Megaways mechanic. The 6-reel, mythical-themed slot includes the same magical creatures and glittering coin symbols as the original Divine Fortune, but this time is loaded with 117,649 Megaways to win with a maximum win of 4,502x stake. Divine Fortune Megaways features falling wilds re-spins, a wild-on-wild expansion feature, and free spins with three collectable casino bonus symbols that can award an additional 500x bonus to create an experience packed with winning potential. GAMINGAMERICA 63

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This release marks the supplier’s second stateside Megaways launch this year, following the release of Twin Spin Megaways in January. “We are excited to have brought our Megaways collaboration to the US,” says Jeff Millar, Evolution commercial director, North America. “Aligning our top titles with the iconic Megaways feature brings something totally new to the US market. Twin Spin Megaways has been firmly embraced by players and I am sure we will see the same with Divine Fortune Megaways. NetEnt has releases planned for later this year across Michigan, New Jersey, Pennsylvania and West Virginia. JCM selected NFC technology for the device because the short-range connection that is inherent in NFC provides enhanced security, seamless communication and zero interference with other devices. NFC technology has been globally proven as convenient and versatile, and it is the industry standard for mobile payment providers.

their offering, so it is flexible. It is able to provide this choice thanks to a unified approach to integration projects. As the world economy and business sectors slowly emerge from the momentous events of 2020, the summer months promise to be action-packed with the Euro football championships and the Tokyo Olympic Games on the horizon. Sportnco will be launching the latest version of its sportsbook with a continued focus on mobile betting and ensuring its US offering is both highly localized on leagues such as Major League Baseball and the National Basketball Association, plus the opportunity to bet on non-US sporting events.

INSPIRED: TOP ‘O’ THE BONUS

SPORTNCO: THE COMPLETE IGAMING PLATFORM

TOP 'O' THE BONUS

SPORTNCO'S ALL-IN-ONE SOLUTION Sportnco has created a turnkey solution that offers a complete iGaming platform combined with a truly localised betting and gaming offering. The company is offering this product set to its B2B partners with features that allow them to manage their offerings with speed and flexibility. The offering has been enhanced with the addition of a player account management system. Sportnco says its all-in-one solution offers all the features necessary for operators to launch a complete product set with optimal localisation and speed to market, including: Sports betting odds and data, trading and risk management, player account management, third-party integration, content management, reporting and business intelligence, regulatory compliance, and many others. Sportnco prefers that its partners combine its betting solution with its player account management system into a comprehensive iGaming platform, but the company is aware that some of its partners want a mix of providers to power 64 GAMINGAMERICA

Inspired Entertainment, Inc. recently launched Top ‘O’ the Bonus, a classic Irish-themed, 6x4 reel, 50-line slot game, available online and on mobile devices. Top ‘O’ the Bonus gives players a chance to experience the luck of the Irish. It boasts elements of a classic slot combined with Inspired’s free spins bonus accumulator feature. With its vibrant and colorful reels, the game’s bonus round is triggered by three or more scatters. Landing the bonus activates the “Pick Me” feature, revealing the Top ‘O’ the bonus amount up to x100. The player then enters the free spins game with sticky wilds, which will accumulate wins until the player achieves a single win of greater than or equal to the Top ‘O’ the bonus amount. Claire Osborne, VP of Interactive at Inspired, said Top ‘O’ the Bonus has evolved from the company’s top-performing fruit-themed classic, Big Bonus. “With its highly popular Irish theme and rich graphics, Top ‘O’ the Bonus has a solid math profile that we know players love. It features our innovative free spins bonuses to create an exciting, highly interactive and entertaining experience for players, just in time for St. Patrick’s Day.” Inspired says Top ‘O’ the Bonus is a medium-volatility game aimed at the casual casino player, with a return to player (RTP) rate of 95.61%.

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NEXGEN: FCMU NexGen Technology has designed, developed and deployed a cashless solution for casino patrons to purchase chips at their favorite table game. Fast Cash Mobile Unit is 100% cashless via a POS PIN debit-only transaction. It is 100% wireless, and as such it does not require any connectivity to a gaming system or server, nor does it need to be hardwired to a printer, PC or monitor. The solution is also 100% mobile, so it isn't pit or table specific. It can be utilized at any pit, any table, by any table game player. If there are multiple players sitting at one table who all wish to purchase chips at the same time, a casino employee can bring over units from the pit podium or from another table. The Fast Cash Mobile Unit has several features and functionalities to make it easy for everyone to use: 1. Four options for players to obtain their receipt – text, email, print or no receipt 2. Two options for a dealer receipt 3. An integrated printer 4. QR code & barcode reader With its glass touch screen, the Fast Cash Mobile Unit fits in perfectly with the COVID-19 Safe+Sound initiative. Fast Cash made its debut at the Hard Rock Sacramento at Fire Mountain. The casino reports customers love how user-friendly it is, especially those with a language barrier.

FAST CASH MOBILE UNIT

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CHAMPION SPORTS: VERSION 3 SPORTSBOOK

VERSION 3 SPORTSBOOK Usability and user experience are vital in good design and are at the core of the sports betting experience on desktop and mobile. The easier and more enjoyable the sportsbook is to use, the more likely it is players will keep returning. Based on a goal to create the fastest, most efficient and user friendly betting experience for players on both mobile and desktop, Champion Sports has spent lockdown creating a fully customisable, premium sportsbook solution to Tier 1 standards, that allows players to find the bets they want faster using a new and intuitive interface based on next generation architecture. Rather than taking a one-size-fits-all approach, Champion Sports prides itself on working with partners to achieve feature and function differentiation to fuel new customer acquisition and maximize competitive advantage. The aim when designing the sportsbook was to make it as simple and easy to use as possible based on Don Norman from the Nielsen Norman Group’s principles of usability, that devices and interfaces should be functional, easy to use and intuitive. By first seeking to understand the needs of players and their betting and market preferences, Champion Sports focused on a design to maximise usability to enhance the user experience, with the flexibility to allow for localisation and intelligent product differentiation for its B2B partners. The new Version 3 Sportsbook is built on Champion Sports’ proprietary platform offering players an extensive range of in-play events and markets that provide a seamless ‘single click’ betting experience for players across all channels and devices. Whatever a partner’s needs, Champion Sports' dedicated teams bring together highly experienced and specialised betting technology, and trading professionals; to build feature rich dynamic solutions that deliver a high-quality sports betting experience that can adapt and scale appropriately to meet any partner’s exacting requirements.

Gaming America Mar/Apr 2021

Articles inside

THE MAIN COURSE?

THE MADNESS OF MARCH

OPPORTUNITY KNOCKS

AHEAD OF THE GAME

THIS WAY TO PRODUCE

COMMENCED COUNTDOWN

IN A FLASH

WHERE THE ACTION IS

SETTING THE PACE

ALL IN ONE AND ONE FOR ALL

ROUNDTABLE: SPORTS BETTING

NO TURNING BACK

CAN TRIBES CAPITALIZE?

HUDDLE: CANADA

THE GREATER GOOD

HUDDLE: MATT DAVEY

CLASS II ACT

SKIN IN THE GAME

HUDDLE: WHAT IN THE WORLD

FROM THE TOP