Gaming America Sep/Oct 2020

GamingAmerica.com

Sep/Oct 2020

O E C IAL C E SP

Front & Center Exclusive interviews with the top CEOs leading by example

• spotlight on loyalty programs

• Sports betting's great comeback

• the growing reality of fantasy sports • Update with AGA's Bill Miller

COO, EDITOR IN CHIEF Julian Perry

EDITOR’S LETTER

EDITOR Carl Friedmann Carl.Friedmann@gamblinginsider.com Tel: +44 (0) 207 739 9908 SENIOR STAFF WRITER Tim Poole Tim.Poole@gamblinginsider.com STAFF WRITERS Owain Flanders Owain.Flanders@gamblinginsider.com Iqbal Johal Iqbal.Johal@gamblinginsider.com Ezra Amacher Ezra.Amacher@gamingamerica.com LEAD DESIGNER Laura Fogar DESIGNERS Rebecca Lydamore, Olesya Adamska DESIGN ASSISTANTS Radostina Mihaylova, Aimee Matthews MARKETING & EVENTS MANAGER Mariya Savova FINANCE & ADMINISTRATION ASSISTANT Dalia Ambrazaite DIGITAL ASSETS Tom Powling COMMERCIAL DIRECTOR Deepak Malkani Deepak.Malkani@gamblinginsider.com Tel: +44 (0)20 7729 6279 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 Richard Carr Richard.Carr@gamblinginsider.com Tel: +44 (0) 203 435 5624 Nitesh Patel Nitesh.Patel@gamblinginsider.com Tel: +44 (0) 207 739 5768 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 CREDIT MANAGER Rachel Voit

JULIAN PERRY, COO, Editor in Chief

CARL FRIEDMANN, Editor

Labor Day took on a whole new meaning this year seeing how crippled the labor force has become since the pandemic exacted its damage on the economy and the wellbeing of millions of Americans. But being resilient is a necessity rather than an option during these times, and the gaming industry has certainly led by example.

For the fall edition of Gaming America, we dedicate this issue to celebrating a dynamic cross section of CEOs, each with their own story about how they reached the heights of their profession, and the diligence it takes to maintain them. Land-based operators certainly have had their work cut out for them as properties shut throughout the spring. Green shoots started to appear in the summer, but there were setbacks, and although some Q2 results show signs of promise, the revenue losses from lost foot traffic speak for themselves.

The word on the street is that numbers won’t properly recover before 2022, so between now and then, the added hard work and fresh ideas need to be enforced.

“Anyone can be a CEO in good times; it’s about who can be a good CEO in tough times,” declares Golden Nugget CEO Tilman Fertitta on page 24. “You’ve got to make tough decisions and that’s what I did, and that’s why we’re still here.” He certainly doesn’t sugar coat anything, which is why either big or small, the companies that have been able to bounce back quicker reacted to the risk early on and made the tough decisions others weren’t ready to make. For many, once a decision was finally made, it was too late.

On page 32, Bill Hornbuckle, president and CEO of MGM Resorts International, is equally steadfast in enduring the body blows to his properties and bottom line. Particularly in Las Vegas, he says, this will be the most impactful crisis we’ve had to endure. But endure he will. “We’ve been resilient as hell, the team has been amazing, the customers have been amazing; their resilience and desire to want to come here,” he says, pulling no punches.

“Despite some closed amenities, they still come and are excited to be here. It’s manageable now and getting better every day but obviously we still have a journey ahead of us.”

We also hear from Twin River, PointsBet, Ocean Resort Casino and DraftKings. They might have different origins but they are equally resolute in their determination to beat the overwhelming challenges of today and tomorrow, no matter the odds.

CONTRIBUTING THIS ISSUE

WITH THANKS TO: Johnny Aitken, Jason Robins, Terry Glebocki, Maria Cohen, Jeff Morris, George Papanier 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.

BILL HORNBUCKLE

President & CEO, MGM Resorts

TILMAN FERTITTA

CEO, Golden Nugget

READ EVERY EDITION ONLINE FOR FREE AT GAMINGAMERICA.COM 4 GAMINGAMERICA

CONTENTS 08

FROM THE TOP

38

With coronavirus wreaking havoc on financial results, Tim Poole looks at how firms should – and shouldn’t – present data.

10

LOYALTY PROGRAMS Customer loyalty programs are under scrutiny now more than ever. Maria Cohen and Jeff Morris from Penn National Gaming speak about finding the balance between seizing opportunities and CSR.

12

CEO: OCEAN CASINO RESORT

President and CEO Bill Miller on forging ahead with G2E after cancelling Las Vegas and Macau, and incorporating the virtual component even when in-person ceremonies resume.

42

CEO: TWIN RIVER

46

CEO: POINTSBET

50

CEO: GOLDEN NUGGET

54

CEO: DRAFTKINGS

58

CEO: MGM RESORTS MGM Resorts International president and CEO Bill Hornbuckle speaks to Tim Poole a year after his Gaming America interview as company COO, and discusses his transition into the role and the impact of COVID-19.

TABLE TRAC Chad Hoehne, CEO, president and founder of has long known that preparation is vital for longevity in business. Inspiring customers is key, especially with increased measures to ensure personal safety.

60

From a spare bedroom to the multi-billiondollar public corporation it is today, CEO Jason Robins tells Tim Poole the DraftKings story.

32

AMELCO Amelco head of business development Brandon Walker on the supplier’s expansion into the US, and why it’s the market of choice in the industry.

Golden Nugget CEO Tilman Fertitta pulls no punches about his ongoing success in business, and why the future of gaming lies equally in both the land-based and online sector.

28

SPORTS BETTING: KAMBI From specializing in Europe to becoming a market leader in the US, Iqbal Johal explores Kambi’s sports betting journey in the US.

PointsBet US CEO Johnny Aitken spells out his bookmaker background and how he helped turn an Australian brand into a staple of the US sports betting market.

24

SYNERGY BLUE CEO Georg Washington deconstructs the gaming supplier’s development over the past decade and why COVID-19 has sparked even greater innovation.

Twin River Worldwide Holdings CEO George Papanier details the transformation of the company and Atlantic City itself.

20

SPORTECH CEO Richard McGuire details the company’s recently published H1 results, explaining the sports betting technology and horse racing business’ journey through the pandemic.

Five years after leaving Revel, Ocean Casino Resort CEO Terry Glebocki talks about returning to the property in its new form.

16

AGA

FANTASY SPORTS INTERACTIVE Ezra Amacher speaks with Fantasy Sports Interactive CEO Dennis Tsalikis about timely partnerships in the US fueled by a determination to compete in the big leagues.

62

PRODUCT REVIEW Gaming America previews some of the newest products for the gaming floor, from cashless payment solutions to UV disinfectors.

66

GAMING ARTS Mike Dreitzer, president of Gaming Arts, details his journey in the industry and the gaming supplier’s key to creativity for the future.

FROM THE TOP

FROM THE TOP: NOWHERE TO HIDE With the coronavirus pandemic wreaking havoc on financial results across the gaming sector, Tim Poole looks at how firms should – and shouldn’t – present data during a difficult period.

During this summer’s reporting of Q2 financials, one company whose name we won’t mention posted a multi-million-dollar loss and suffered a 70% year-on-year fall in revenue. The impact of the COVID-19 pandemic had hit hard and the firm – one of many – had fallen victim to casino closures across the US. If you had read about these financials in one publication, however, you wouldn’t have had a clue. Indeed, the story covering the 70% year-on-year fall was headlined: “Company seeks growth opportunities after better than expected results.”

Now, how a company’s financials are reported externally is not the fault of any company itself – and, rest assured, Gaming America will never misleadingly shy away from the facts when covering trading updates. But this complete misrepresentation of the story in hand was symptomatic of a wider culture; one that tries to bury bad news rather than report the facts, and address how very real problems and challenges will be dealt with. Just imagine this year’s Super Bowl: how derided would 8 GAMINGAMERICA

ESPN be if it headlined its match report on the Kansas City Chiefs’ victory by focusing on how much the San Francisco 49ers were looking forward to next season?

When it comes to financial results, companies themselves can do a lot more to refine the accuracy of their presentations, which in turn will reduce any misreporting further down the line. There is, after all, one problem for publicly listed organizations publishing their quarterly results: the figures are there for all to see and no amount of PR will change that. So, while some publications may be easily tricked into not seeing the full picture, their readers and potential investors – those who matter most – won’t be.

A factor worth bearing in mind in the current climate is that every US company involved in land-based gaming is facing an identical situation. Revenue falls have been felt across the board, as have falls in EBITDA and increases in losses. So if it’s common knowledge your casino, or a casino you work with,

FROM THE TOP

has been closed for a prolonged period, it’s not worth hiding away from the data or trying to rehash it. A more transparent approach is always a more effective one.

There’s been a mix of strategies in this regard during the pandemic, ranging from releasing very limited trading updates ahead of official results reports, simple rearranging of information to put small victories at the top of the agenda, or straight shooting. It’s no surprise as to what the audience, and investors themselves, would prefer: those who have been straight shooting all along. A company that does not shy away from its revenue falls, for instance, will come across as a company with nothing to hide – and one that is looking to tackle the coronavirus pandemic head on.

But if one reads a boastful report about a successful Q2 that has strengthened a company long term, only to see a set of figures telling a completely different story, alarm bells will ring and credibility will decrease.

Pleasing shareholders is, naturally, a key goal for every public firm – if not the most important goal of all. There are, though, limits to how exactly you go about doing that.

In other words, there are certain dos and don’ts.

WHAT WORKS

read two pages singing the praises of a company, without any mention of revenue, profit or EBITDA. They read on, only to see revenue is down 90% year-on-year and, while costs have been cut, a healthy profit in the corresponding period has turned into a huge loss. Immediately, they would discard anything they had just read and start afresh with their own internal evaluation of the situation. That’s the main point at play here: every shareholder or stakeholder will arrive to their own conclusion. A financial report must therefore report the facts and persuade someone to arrive at a certain outcome, without trying to mislead them.

As such, burying weak revenue figures lower down a financial report, or not mentioning them at all in your main presentation, will not work. A general rule is that investors will look for certain metrics when assessing a trading update. If those metrics are minimized or hidden, that’ll be a much bigger red flag than if they were included, but with explanations as to why they occurred and precisely what they mean for the business’s overall outlook. Producing a positive spin is, of course, completely within a business’s prerogative or remit – but only if done with transparency and to serve a genuine purpose.

“THAT’S THE MAIN POINT AT PLAY HERE: EVERY SHAREHOLDER OR STAKEHOLDER WILL ARRIVE AT THEIR OWN CONCLUSION. A FINANCIAL REPORT MUST THEREFORE REPORT THE FACTS AND PERSUADE SOMEONE TO ARRIVE AT A CERTAIN OUTCOME, WITHOUT TRYING TO MISLEAD THEM.”

While hard numbers cannot be altered, financial presentations will include CEO comments, where it’s fair game to diminish any negative aspects of performance and emphasize the positives. When a CEO is reflecting on the organization’s most recent quarter, suggesting a huge loss during a pandemic was better than expected is perfectly reasonable. Here, the benefits of higher liquidity, cash flow, cost-cutting and brighter long-run outlooks can all be amplified – because the facts and figures have already been reported and the CEO’s interpretation of them is naturally subjective.

Similarly, highlighting certain positive figures in the intros of financial reports is a totally legitimate practice, especially when the less-promising figures sit alongside them. Yet the key is to ensure all the relevant information is included. If it is, companies are free to focus on whichever aspects suit them best. This way, the headline pages of your financial report remain relevant and reliable enough not to just be glossed over in future.

WHAT TO AVOID Imagine, however, an investor or shareholder that has just

NOWHERE TO HIDE

Ultimately, the very best financial reports are those that present the facts and don’t mislead their audience.

During the COVID-19 pandemic, downturns in performance for US land-based operators and suppliers have been inevitable. Some of the biggest companies in the business have therefore reported them as such, referencing unavoidable falls but rightly shifting the focus to how they have addressed the situation as quickly as possible.

The best-practice reporting from some of the sector’s biggest firms therefore leaves no excuse for companies of any size to try and manipulate their data.

In the end, there’s nowhere to hide: it’s always better to tell the world what has happened and discuss how you will move forward. If you try and misrepresent the facts, no one will be fooled – they will instead wonder whether you actually have a handle on the situation at all. Transparency and acknowledging reality are far likelier to help your share price than pretending a situation is not as your audience already knows it to be.

GAMINGAMERICA 9

CUSTOMER LOYALTY PROGRAMS

COMMITTED TO THE CAUSE Customer loyalty programs are under scrutiny now more than ever, as gaming companies are getting more inventive with ways to hold onto and build market share. Ezra Amacher speaks with Maria Cohen and Jeff Morris from Penn National Gaming about striking the right balance between seizing opportunities and CSR. Even before the coronavirus pandemic, Penn National Gaming’s customer loyalty program mychoice was evolving into an online-focused platform geared towards a wider and younger audience. The last few months have only accelerated that trend as many traditional casino-goers opt for online play, while a younger demographic willingly heads back to brick-and-mortars.

Through it all, mychoice has positioned itself as an omni-channel program as accessible on casino property as it is at home. mychoice’s ingenuity, well known to industry observers, is now being recognized by way of a Global Gaming Awards Shortlist nomination for Customer Loyalty Program of the Year.

Maria Cohen, PNG vice president of guest experience and engagement, tells Gaming America: “Flexibility is key to the success of a loyalty program. In this new omni-channel world, companies need to react to changing customer preferences, which is why a digital strategy is critical.”

PNG’s guest experience team began altering the way it reaches out to customers after the coronavirus shuttered casinos and kept many mychoice members homebound. “We’ve seen with the pandemic that while a lot of gaming companies were still sending out those direct mail offers, what we’ve been able to see is a lot of customers getting very comfortable with digital pools,” Cohen says.

“Although it’s been a focus of ours for a long time, we’re kind of expediting that. I think in the omni-channel world and with the changing preferences of guests, a digital strategy is really going to prevail. We’re thinking a lot today about those typical newsletters that you get in the mail and how we make them more dynamic digitally.” mychoice’s focus on digital marketing has coincided with PNG’s development of online casino play and soon a mobile sportsbook. Whereas promotional newsletters would lure customers into brick-and-mortar casinos, PNG is now seeking to bring players to online games. mychoice is a crucial incentive to bolster online play as customers can earn rewards points just as they would at a casino.

“Companies are keeping members engaged during the pandemic through social media, virtual content, earn at home opportunities, and giving members the confidence that they will not miss out on rewards during pandemic business closures,” Cohen adds.

“In response to all the pandemic restrictions, customers have quickly adopted digital tools. As businesses start to open back up, they need to keep this momentum and fast track their digital strategy.”

10 GAMINGAMERICA

PNG’s hollywoodcasinos.com boasts Vegas style-slots and classic slots for desktop and mobile apps and the online casino’s Facebook page also rewards customers with exclusive content and free credits to play. Additionally, in May, PNG partnered with DraftKings to bring online casino gaming to its Pennsylvania customers as the bulk of PNG’s customers reside in the company’s home state of Pennsylvania or neighboring New Jersey. Both states have seen a tremendous rise in online gaming revenue since the start of coronavirus. New Jersey online casinos earned $81m for the months of May and June, while Pennsylvania online casinos won a record $56m in May, with PNG generating $9m in partnership with DK Casino.

Jeff Morris, PNG vice president of public affairs, tells Gaming America: “I think that [online] framework really helps our company, being in 19 jurisdictions across the country. And legislatures are going to start considering expansion opportunities, specifically online, whether that’s mobile sports betting or online casino.

“I think a number of states will look for that opportunity in their coming legislative sessions, and that provides us an opportunity to really capture a significant part of the market share with a great program like mychoice.”

Online gaming carried companies through April and May, when every US casino was shut down. PNG then began reopening its brick-and-mortar locations in early June. Thirty-three of PNG’s 35 properties had reopened by mid-August, with Tropicana Las Vegas scheduled to open its doors on 1 September.

“As our businesses are starting to reopen, we’re seeing a new and emerging younger demographic coming to our bricks and mortar,” Cohen says. “I think folks are looking for things to do, so it’s been interesting to see how our older demographic maybe not coming as much, but we’re seeing a new younger demographic.”

In January PNG purchased sports media company Barstool Sports for $450m in a deal that could shape the sports betting industry for years to come. The immediate return for PNG is access to 66 million potential new customers, made up primarily of the younger demographic PNG is trying to attract.

“That was a really genius partnership and we’re super excited about it,” Cohen says. “We have a braintrust right now really thinking through what are going to be the benefits that appeal to this younger demographic. Barstool is a partner with us on that.

We have a nice list of things that we’re thinking about.”

CUSTOMER LOYALTY PROGRAMS

First on that list, Cohen says, is integrating Barstool merchandise into the mychoice Mall, the program’s digital points redemption store. Guests will be able to purchase Barstool gear either through mychoice’s points currency, mycash, or with regular cash. Once Barstool branding is integrated in brick-and-mortars, customers will be able to buy merchandise on site as well.

“All of our retail sportsbooks will be Barstool Sportsbooks,” Cohen says. “The first one that will be branded that way will be at our Greektown property in Michigan. The other thing is that as we think about states where we don’t have a casino and we don’t have online sports, we still want to engage with that Barstool customer.

“And we want to do that by offering the mychoice program, even if they just go spend on Barstool merchandise, which they are huge fans of. We want to make sure that they can earn in the program and then at the time where they’re in a city where we have a casino, they’ll already be on the mychoice program.”

PNG plans to debut the Barstool Sportsbook in Pennsylvania sometime in Q3 according to Morris, coinciding with the NFL season and possibly the MLB playoffs. mychoice will automatically connect with sportsbook accounts, and every placed wager of $10 or more adds to a customer’s mychoice tier points total.

“That’s really where we think we’re a little bit different than a lot of the other loyalty programs,” Cohen says. “Although they may have sports betting online available, it’s separate from their casino loyalty program. The fact that we’re able to reward our guest at really every touch point with us I think is the reason we come out ahead against the other gaming loyalty programs.”

The younger demographic being courted by PNG and its rivals enters with less knowledge of loyalty rewards programs. mychoice gets players familiarized with their program by offering rewards, like mycash, the moment a customer signs up, and the currency can be used right away, whether for a free play, food and beverage or a hotel stay.

“We have annual benefits for some of our top members where they can experience cruises, not right now unfortunately, island vacations, luxury gifts and things of the like,” Cohen says.

“Our program, outside of just what we’re offering on properties, has special benefits and priority access.” mychoice, like other royalty programs, must toe the line between being all-encompassing of its customers and giving some special treatment. The program is

separated into five tiers: Choice and Advantage tiers welcome casual customers, while the upper three tiers, Preferred, Elite and Owner’s Club, cater to the most devoted members.

“We like to say that the program is both inclusive and exclusive,” Cohen says. “It’s inclusive in that no matter what tier you’re in, there’s something for everyone. As soon as you join the program you’re earning right away. But in terms of exclusivity, we take care of our most loyal members in really great ways.”

Members of the top three tiers receive priority access during their visits, and many of PNG’s properties are equipped with VIP lounges. The top two tiers get personal casino hosting.

“The great thing about that host is they continue to keep that relationship and understand all the things which are going to make a guest want to come back,” Cohen says. “Knowing all of their personal preferences, then we store all of those personal preferences and then we look at those preferences and offer experiences to get them to come back.”

PNG collects data on customers’ gaming and spending tendencies, then uses that information to send personalized offers.

The management of personal information by casino companies, and specifically loyalty rewards programs, has come under scrutiny in recent years by critics who argue it negatively affects problem gamblers.

“Loyalty programs built on promises of future rewards and do not reward the customer in real time could be considered shams, especially if the loyalty tiers or earning scheme is hard to achieve,” Cohen says.

PNG is a member of the National Council on Responsible Gaming and the mychoice home page has a link to a national problem gambling helpline at the bottom of the page, also containing links to individual state helplines.

While the ethics of data mining to further personalize the customer experience is a conversation here to stay, there’s no debating that development and integration of data systems has taken mychoice and other rewards programs to new heights in recent years. It’s a trend that will only continue to expand as programs seek better ways to please their customers.

“Our most significant opportunity is finding new partners that will align well with the mychoice program,” Cohen says. “Whether it is leveraging another company’s database or creating more value with an expanded offering of benefits, integrating with potential new partners is a big focus for Penn National.”

“AS OUR BUSINESSES ARE STARTING TO REOPEN, WE’RE SEEING A NEW AND EMERGING YOUNGER DEMOGRAPHIC COMING TO OUR BRICKS AND MORTAR,” COHEN SAYS. “I THINK FOLKS ARE LOOKING FOR THINGS TO DO, SO IT’S BEEN INTERESTING TO SEE HOW OUR OLDER DEMOGRAPHIC MAYBE NOT COMING AS MUCH, BUT WE’RE SEEING A NEW YOUNGER DEMOGRAPHIC.”

GAMINGAMERICA 11

TERRY GLEBOCKI

DÉJÀ VU Five years after leaving Revel, Ocean Casino Resort CEO Terry Glebocki talks to Tim Poole about returning to the property in its new form – with aims of a very different outcome this time around.

Although Terry Glebocki spent her “best decade and a half” working for Trump Entertainment, it’s the “little piece of her heart” she left in Atlantic City that has defined her career to date. Since August 2018, Glebocki has been CEO of Ocean Casino Resort, but it’s not the first time she’s worked at the property, spending eight years there in its ill-fated spell as Revel. Having “built the property from the ground up” only to close and sell it, Glebocki had unfinished business on the Atlantic City Boardwalk. So it’s perhaps with a sense of déjà vu she joined Ocean as CFO in February 2019.

But, as she tells Gaming America, she has ensured the mistakes of yesteryear will not be repeated at the New Jersey casino hotel.

Born and raised a “Jersey girl,” Glebocki grew up in Cranford, New Jersey, and has always had an affiliation with her home state.

Graduating with a degree in accounting from Lehigh University, in Bethlehem, Pennsylvania, Glebocki’s first step into employment saw her enter the world of public accounting. Working at Touche Ross (now Deloitte and Touche), Glebocki became certified and moved up to a senior accountant role within three years. Yet, living in South Jersey and commuting into Philadelphia, there was one problem. “I loved the job, I loved public accounting and how much I learned in such a short time. But I hated the commute,” she recalls.

As the biggest employer in South Jersey, the gaming industry beckoned. “It’s funny as I look back because I was very naïve: I thought the hours would be better working for a casino,” she says. “Busy season went from January till May in public accounting. Little did I know the hours in gaming were a 24/7 operation.” Glebocki initially found herself in an internal audit spot but, within nine months, transferred into financial accounting and “never looked back.”

Initially, hesitance from a colleague, Glebocki’s former employer, made her “nervous about the decision.” The nerves soon passed, however, as the growing excitement of gaming on the East Coast took hold. Having always worked on the Atlantic City Boardwalk since her industry entrance in 1987, the executive started out at 12 GAMINGAMERICA

what was then Golden Nugget. She joined 17 days after its sale to Bally’s, meaning “everyone was leaving and I was just coming in.” But she explains: “That wound up to be a great opportunity. I was able to have my choice of what made sense and where I wanted to be.”

Within five years, Glebocki became assistant controller at the property, then named Bally’s Grand. Her next career move, though, took her from the far end of the Boardwalk to the very centre of it: Trump Plaza. While Glebocki says Donald Trump was not “really aware” of her, corresponding mostly with the CEO, she does have one Trump anecdote: “I was in one meeting where he said ‘how’s that new woman doing?’ He meant me and I was actually in the meeting. So I said, ‘That’s me – I think she’s doing pretty good!’”

Glebocki spent 16 years at Trump Plaza, working her way up to SVP of finance. Never did she once think she was working for the future US President, and who could blame her? “Even when I was there for the Apprentice, I didn’t know that would become the sensation it did,” she adds. Still, it was her next role that would end up having the biggest impact on her career – across two spells – as she became Revel Entertainment’s VP of finance in 2007.

“I had an opportunity to work for a company no one had ever heard of. They were going to build it from the ground up and I thought this is my chance to make my mark,” she says. “It was a scary decision because they didn’t own anything except a giant piece of sand on the Boardwalk. They didn’t have funding and everything was so uncertain. It wound up being quite a ride – I spent eight years at Revel.”

Glebocki notes that the property was originally open for just two and a half years, despite her eight years with the company.

That speaks to the property’s complex and, in its first lifecycle, doomed journey. Following its opening on 2 April 2012, Revel closed on 2 September 2014. “I was employee number five and ultimately ended up being the CFO, going through the sale process and handing the keys to the new owner when I left in 2015.”

TERRY GLEBOCKI

Before she would eventually return to Revel in its new form as Ocean, Glebocki became corporate CFO at Tropicana Entertainment. Though still based in Atlantic City, she oversaw the finances of eight properties in six different states and Aruba.

“They were almost like dog years,” she comments. “Where in the past I would close the books for a single property, now I was closing the books for eight properties; it was the best experience ever. We were so successful that it culminated in the merger of Tropicana Entertainment and Eldorado Resorts.”

Glebocki stayed through the $1.85bn merger in October 2018, confirming the transaction, and was released, which was always part of the plan. By this point, an in-demand Glebocki had registered success as a prominent gaming executive. And yet the phone call she would receive a few months after leaving was not one that initially excited her. It was from Ocean Casino Resort – the reopened, rebranded Revel – offering her the CFO role.

“I built this property from the ground up and I had to close it, so I wasn’t sure I had it in me to come back,” she confesses.

“But when I thought about the financial predicaments it had

been in and saw the opportunity going forward, I thought let me give it a shot. If I can’t make it work, nobody’s been able to make it work. And if I can, it would be very fulfilling.”

With her mind made up, Glebocki became CFO in February 2019, progressing to interim CEO in August 2019 and permanent CEO by December 2019. When Gaming America asks whether she had a sense of unfinished business with Revel and Ocean, she is emphatic: “Oh, absolutely.” Knowing the mistakes of the past, she relished the prospect of leading Ocean to future success.

She was welcomed with the stark fact that Ocean had lost $38m in its first few months since reopening. Charged with “stopping the bleeding,” she recruited a new team, and the same eight months year-on-year turned a $38m loss into a $21m profit. Two major issues had already been corrected in Ocean’s favor. Before reopening as Ocean, the new owner of Revel bought a power plant that had previously impeded the property's profitability, saving over $2m a month. The huge tax burden on the building – following its $2.4bn building cost – was also lifted, saving Ocean $30m a year.

“SO OFTEN IN MY CAREER I’VE BEEN THE ONLY WOMAN AT THE TABLE. BUT THINGS HAVE CHANGED A LOT. THERE ARE A LOT OF TALENTED WOMEN IN GAMING. THEY’RE NOT IN POSITIONS BECAUSE THEY’RE WOMEN; THEY JUST HAPPEN TO BE WOMEN.” Glebocki recalls that Revel had lost $150m in its first 12 months. During its last 12 months, and with her in the CFO role, that loss was reduced to $80m. Now, with around $55m saved from the aforementioned cost reductions, Glebocki was optimistic about Ocean. “This loss was not as huge; the debt load on this property was very manageable because this building sold for pennies on the dollar,” she observes. “So I thought it really is set up for success and I could be the person to help take it into the future.”

Our conference call marks roughly 12 months since Glebocki took over as Ocean Casino CEO. “What a ride,” she responds when asked to reflect on that opening year. “We started to gain momentum, turning loss into profit. The first month the property made money in its entire history was June 2019. We made money that month and never GAMINGAMERICA 13

TERRY GLEBOCKI

looked back, continually making improvements. People had confidence in the building, liked the management team, loved the product and loved our offers.”

But then disaster struck, as the COVID-19 pandemic caused global devastation and brought the US casino industry to a shuddering halt. Glebocki says: “We had more momentum than anyone – double-digit growth year-over-year. But COVID-19 just threw a huge curveball. It seemed unfair to me: oh my god, I’m CEO, I finally got the big job and now there’s a pandemic and the property has to close.” The situation was reminiscent of Revel’s first closure for the CEO, forced once again to let employees go.

“YOU CAN’T HAVE PEOPLE STAYING IN YOUR HOTEL WHO CAN’T EAT OR DRINK. IT’S LIKE HAVING A HOUSE GUEST AND SAYING YOU’RE NOT GOING TO FEED THEM.” For 107 days, Ocean remained shut, although Glebocki and her team immediately began planning how to reopen. Senior management was inundated with employee queries on their future, with Ocean’s job made harder being a “standalone asset,” missing the same deep pockets as Atlantic City properties tied to a bigger organization. Maintaining cash and liquidity was fundamental, although Glebocki says her background as a CFO was very helpful in this regard.

“We used a lot of common sense,” she says. “We decided we were going to market when we reopened. Others decided to be more conservative because of the unknown. We knew our guests wanted offers so we went out there still with compelling offers. Although we have a huge footprint, we don’t have a lot of hotel rooms. We only have 1399 so it was important to us to maximize and fill those hotel rooms – and we did.”

The planning did not go to waste; out of nine Atlantic City properties, as brick-and-mortar business fell 47% year-on-year overall, only Ocean Casino Resort saw growth in July, its gaming revenue rising 30% to $26.3m.

Whether that kind of growth – and a wider Atlantic City recovery – can continue comes down to the restrictions New Jersey properties face, Glebocki states. At press time, properties in the Garden State are not allowed indoor dining – restrictions that are harsher than in other gaming jurisdictions.

These restrictions have prompted a focus on customer experience from the Ocean team. “You can’t have people staying in your hotel who can’t eat or drink,” Glebocki says. “It’s 14 GAMINGAMERICA

like having a house guest and saying you’re not going to feed them.” In response, Ocean duly opened up 24/7 room service, the reverse approach of neighbouring properties which didn’t want to carry such costs.

Two weeks into the property’s reopening, New Jersey Governor Phil Murphy allowed outdoor dining venues to open with a fixed roof, providing 50% of walls are open to allow constant airflow. Here, Ocean got creative, turning the fifth floor of its 12-deck parking garage into an outdoor VIP lounge. “We carpeted, put in palm trees, had TVs and live music. When it rains, people can take their takeout there and eat it; rain is a huge issue when you only have outdoor food and beverage.”

Coordinating the launch of its VIP lounge with the reopening of Borgata, which waited until late July to resume operations, Glebocki wanted to give guests “something to be loyal to.” Lo and behold, the Ocean CEO is now watching “more and more properties offer similar options.” At the time of our interview, Glebocki tells us performance has maintained through August, although she reiterates long-term success is dependent on the ongoing development of indoor dining regulations.

When it comes to long-term success on a personal level, Glebocki jokes she’s actually “not feeling that special anymore.”

While she became the first female CEO of an Atlantic City property, four out of nine properties are now led by women.

She tells Gaming America: “So often in my career I’ve been the only woman at the table. But things have changed a lot; I don’t think it’s because of me – there were plenty of women before me. There are a lot of talented women in gaming. They’re not in positions because they’re women; they just happen to be women.” On her own team, for instance, Glebocki praises “some very, very strong women,” including CFO Laura Palazzo and Lori Yeager, SVP of human resources.

Looking ahead, Glebocki aims to see Ocean to profitability – a goal she was previously achieving before the three-and-a-half-month closure – and to cash flow positivity. “We need to fit out the 500 rooms in the middle of our tower that are just shelled out at this point,” she explains. “The tower we have was meant to accommodate 1,898 rooms. Going into the pandemic, we had sketched out those 12 floors, right smack in the middle of our tower. We actually had model rooms being unveiled on the day we were told we needed to shut down. Once we have our full complement of rooms, I think the sky’s the limit for this property.”

On that skyward journey, Glebocki is taking it “one day at a time,” as she describes a tendency to get “so focused on what I’m doing I forget to pay attention to other things.” She “works hard and keeps her head down,” constantly looking for ways to make money for the owners and the team. But however the sequel of her Revel/Ocean mission pans out, Glebocki says the best part of her life is her family: two daughters and an “extremely patient and supportive” husband. Those are her proudest achievements.

GEORGE PAPANIER

"BE WHAT YOU ARE, NOT WHAT YOU'RE NOT" Twin River Worldwide Holdings CEO George Papanier speaks to Ezra Amacher about the excitement of transforming Atlantic City from the late 1970s, and the company's journey over the years.

George Papanier can still recall the excitement of the first casinos arriving in Atlantic City in the late 1970s. As a college student at nearby Rowan University, he witnessed his region of the country explode with excitement when Resorts International opened its doors and ushered in a new era of gaming in the United States.

Papanier tells Gaming America: “I had to be a part of the industry that was transforming Atlantic City, so I applied and was offered a finance position during the construction phase of the Sands Hotel and Casino. Properties were opening so fast that they created a vacuum for talent that my skill set was able to fill.”

Papanier rode the initial Atlantic City casino wave into a four-decade career that has spanned the continent, taking him to places as disparate as Colorado and Louisiana.

He eventually returned home to the northeast corridor but not before picking up a wealth of experience that drives his decision making as CEO for Twin River Worldwide Holdings (TRWH).

To better understand how Papanier rose to his present position, it’s imperative to start at the beginning. He was born in Philadelphia and grew up in the shadow of the now-demolished Veterans Stadium. Not surprisingly, he became a huge Eagles fan. Papanier’s parents instilled in him qualities necessary for a good leader: levelheadedness and a firm belief in yourself.

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“My role models were my mother and father, who were two completely different people with different philosophies on life,” Papanier says. “My mother is direct and had no problem giving her opinion and my father always guided me through his actions. At an early age, my father taught me that you cannot be driven entirely by emotion and need to utilize the best tools available and deploy tactics that are fact-based in order to elevate your chances of success – something I have carried through life with me.”

Papanier then went off to college “with the sole purpose of guaranteeing that I would be employable upon graduation” as he puts it. Adjunct professors with hands on experience in the business world fueled his interest in finance, and he left Rowan with a CPA in hand. “It was the basis for my moving quickly to a CFO position in gaming, which became the foundation for my current role as CEO,” he says.

After beginning his career with Sands Hotel and Casino, Papanier diversified his resume by working in an executive finance position for Trump Plaza Hotel and Casino in Atlantic City and then serving in executive operations roles for Hemmeter Enterprises in Colorado. He moved on to CFO positions for Sun International Hotels Limited in the Bahamas and Mohegan Sun Casino in Uncasville, CT, before returning to Atlantic City in the late 90s as COO of Resorts Casino Hotel.

By the early 2000s, Papanier had solidified himself as a rising COO, first for Peninsula Gaming and then for TRWH from 2004

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to 2011. The early years of his TRWH tenure included turning Lincoln Park from a Dog Track with video lottery terminals into one of Rhode Island’s premier casino hotels. The work, while fruitful, was far from glamorous.

“We completed the Twin River transformation, unfortunately, just in time to enter the Great Recession in 2008 and although profitable, we could not avoid the triggering of loan covenants and entered into a pre-packaged bankruptcy where I had the unenviable role of debtor in possession,” Papanier says. “I helped navigate us through the restructuring process and was promoted to CEO upon emergence from bankruptcy. So, with an improved balance sheet, we put ourselves in a position to create considerable value for our shareholders.”

Papanier says he leaned on his Atlantic City connections to bring in experienced talent that matched the company’s aggressive marketing strategy. In a matter of years, TRWH went from a regional business with one core asset, Twin

River, into a company with EBITDA that grew more than 240% by 2018.

Papanier proudly recalls, “Our success in the highest-taxed jurisdiction in North America reflects the diversity of operational capabilities our organization possesses when compared to Hard Rock Biloxi, which has experienced success in a relatively low-tax jurisdiction and received numerous awards, including being voted the best run of all Hard Rock Casinos by Hard Rock Management as recently as 2017 and 2018.”

In the first half of 2020, TRWH took its biggest step yet in expanding its US footprint. The company acquired three Colorado casinos from the subsidiary of Affinity Gaming for a cool $51m. When Eldorado Resorts put the Isle of Capri in Kansas City, Missouri, and Lady Luck Casino in Vicksburg for sale amid its acquisition of Caesars, TRWH snatched them for $230m. Along with planned acquisitions in New Jersey, Nevada and Louisiana, the company will soon operate a dozen properties across eight states.

“WE CAN’T BE AFRAID TO EVOLVE THROUGH INNOVATION, TECHNOLOGICAL ADVANCES AND ENGAGEMENT WITH NEW PLATFORMS LIKE SPORTS BETTING AND IGAMING.” “On our recent M&A activity, we look forward to executing our development and operating plans for our newly acquired Kansas City and Vicksburg properties, and expect our Bally’s AC acquisition to close in mid-to-late Q4 2020, with Shreveport and Mont Bleu likely closing in the first half of 2021,” Papanier says. “Finally, we continue to focus on returning to pre-COVID levels of revenue as we head into 2021.”

The looming acquisition of Bally’s gives TRWH crucial access into the New Jersey online market, which has exploded in recent months. In August, the company awarded the first of its online skins to Sporttrade and theScore, choosing to go with two up-and-coming startups over more traditional players. Sporttrade will give TRWH entry into a first-of-its-kind sports betting exchange, while theScore offers iGaming and an online casino.

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GEORGE PAPANIER

“We can’t be afraid to evolve through innovation, technological advances and engagement with new platforms like sports betting and iGaming,” Papanier says.

TRWH isn’t afraid to partner with big brands, either. In Colorado, the company signed a market access agreement with FanDuel back in January months before the state officially launched regulated sports betting. Though the coronavirus initially held down wagers in the Rocky State,

by July Colorado reported $5m in sports betting revenue.

The pandemic took off after TRWH had agreed to its early 2020 acquisitions, but didn’t stop the company from pursuing the Eldorado pickups, either.

“The situation with COVID in the US really came on quickly,” Papanier says. “We had obviously heard of the impacts in Macau, and it began to pop up on the radar in the US in early March, but we did not fully appreciate the impact this was going to have until events occurred like the NBA cancelling its season and we received a closure notice in Rhode Island.

Luckily, we were well positioned when it happened, as we have continuously taken proactive steps to ensure that we were well prepared for an event like this, financially speaking.”

Though the coronavirus was incomparable in size and scope, Papanier spent four decades preparing for the type of crisis that would unfold across the industry. He credits his gaming career adversity for providing a wealth of knowledge he could draw on this spring and summer.

“Throughout my career, I have learned the most from circumstances outside my control,” he says. “For example, the promotional wars in the 1980s in AC drove my support of rational targeted marketing spend; managing through the internet bubble taught me the need to operate efficiently; and the impact of 9/11 taught me the need to be adaptable to market fluctuations and how to deploy reactive tactics to competition.”

Papanier would be the first to say his success as TRWH’s CEO is the product of the structure around him more than any one person. He prefers to spread out tasks rather than consolidate, and with a business that now spans much of the continent, his is a strategy that appears built to suit the company well.

“I purposefully created a broad organizational structure, which we have built on as we acquire properties, and intentionally put the organization in a position to execute an aggressive diversification strategy prior to going public in 2019 so that our current structure has the experience and bandwidth to support our continued growth,” he says.

“All this set the stage for the growth and value creation that you see today as a company that owns and manages nine casinos in five states and with three pending acquisitions in three states.”

The value system that underlies much of Papanier’s decision rests on loyalty and authenticity. He is a believer 18 GAMINGAMERICA

in being loyal to those he surrounds himself with, while expecting a commitment to excellence in return. During times of struggle, he returns to a favorite line he learned from TRWH CMO Phil Juliano on “being what you are and not what you are not.”

“I am guided by a few fundamentals and one overriding philosophy based on an understanding of our industry and the nuances of each market we operate in,” Papanier says.

“I have always prioritized customer satisfaction, taking care of our employees, providing value to shareholders and supporting the communities that we operate in.

My overriding philosophy stems from a quote from Bill Marriott, who said, 'Make the decision to make a decision.'

We have to always be in a position to react to competition and I empower those in my organization at all levels to have the latitude to make decisions.”

Making the proper decisions is more paramount than ever as TRWH seeks to bounce back in H2 2020 and into 2021. The company is tasked with a long list of challenges, from safely reopening its current casinos to efficiently completing the integration of its recent acquisitions, all during an unceasing pandemic. The roadmap, though tricky, could lead to an attractive destination by this time next year.

At present, Papanier is insistent on maintaining safety and integrity among his company and the consumers they serve. The quickest way to gain the trust of casino-goers is to show properties can reopen while prioritizing the health of people inside them.

“As we continue to operate under capacity restrictions and with limited amenities, consumer confidence is going to be key to the economic recovery,” Papanier says. “From the moment we closed our properties, we started working on a detailed and comprehensive reopening plan. We have been working very closely with state and local officials, as well as public health experts to deliver a safe environment for everyone, and are thrilled to have welcomed back our valued team members and loyal customers at all of our properties that meet or exceed CDC safety guidelines.”

When Papanier looks back on what he’s been able to experience and create in the gaming industry, he can’t help but return to his wide-eyed younger self eager to take part in the fun of late 1970s Atlantic City. The same energy that attracted him to the job keeps him going today.

“I love the exciting nature of the business and how it incorporates all aspects of entertainment and leisure, including not only casino-style gambling, but also bars and restaurants, hotels, banquets and convention facilities, live concerts and shows, sports betting, horse racing, live boxing and MMA fights,” Papanier says. “There’s something for everyone.”

LIVING THE AMERICAN DREAM JOHNNY AITKEN

PointsBet US CEO Johnny Aitken speaks with Owain Flanders about his bookmaker background and how he helped turn an Australian brand into a staple of the US sports betting market.

Australian sports betting operator PointsBet has truly hit the ground running after joining the US market just 15 months ago. The company arrived on the New Jersey scene with no pre-existing brand awareness and the sole aim of establishing itself among the region’s top players. Now, the operator holds significant market share in the Garden State, and has since established market access deals in an additional 11 states. With some big plans and a talented management team in place, the future certainly seems bright for this operator.

The man behind this development, US CEO Johnny Aitken, could certainly be considered a product of his childhood environment.

The Australian exec grew up hearing the cheers of the Melbourne Cricket Ground through his bedroom window as his childhood home was located just 200 meters from the world-famous arena.

This, along with his father’s love for horse racing, led Aitken to develop a passion for the industry from an early age.

It’s clear that his Australian heritage was a significant part of Aitken’s motivation for joining the gambling industry. A successful bookmaking industry seems like a natural fit for a nation overflowing with sports lovers. In 2017-18, Australia saw turnover of AU$4.7bn (US$3.38bn) on horse racing and sports betting together. This figure is perhaps unsurprising when 39% of the 25 million-strong population are estimated to be regular gamblers.

“Per capita it’s the most mature, most lucrative market in the world,” Aitken explains. “It’s just inherent in the culture; racing on a Saturday and then betting on the NRL or AFL during the week.”

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After high-school, Aitken completed a bachelor of commerce at Deakin University, majoring in sports management and marketing.

Here, he was able to benefit from his first venture into the world of professional betting. As he completed his studies, the exec learned how to price up bets and utilize algorithms while working for professional betting syndicates. It wasn’t until Aitken met Tom Waterhouse however, that he truly fell in love with the fast-paced world of bookmaking.

Part of the famous Waterhouse family, Tom comes from a lineage of bookmaking, racing and training excellence. Throughout the mid-2000s, he was among the most famous horse racing bookmakers in the world, running his own sports betting service while placing high-end bets of his own to manage risk. It was during this time in 2010 that Waterhouse hired Aitken, along with current PointsBet director and CEO Sam Swanell, to oversee the development of his new online business TomWaterhouse.com.

As Aitken discusses this time in his life, it’s clear that Waterhouse became a significant role model for him throughout his early career and beyond. At TomWaterhouse.com, he had to quickly adapt to the fast paced environment of professional life under one of the industry’s most talented bookmakers. He says: “It truly had that feel of a 1980s Wall Street. It was a bit old school and really pressurized. I really thrived in that environment and learned so much off Tom. I learned to be measured, disciplined under pressure, to be emotionless when it comes to how you trade risk, and to not put the business in a position where everything hinges on one or two

JOHNNY AITKEN

races. I guess I really learned the fundamentals of what separates a recreational bettor from a sharp bettor.”

TomWaterhouse.com was acquired by William Hill at the end of 2013 as the global betting operator pursued an aggressive market entry strategy into Australia, also purchasing leading brands Sportingbet and CENTREBET. It was during this period that Aitken learned valuable lessons he still holds on to today.

The executive explains how TomWaterhouse.com’s reliance on vendor technology became the business’ most significant failing. To this end, Aitken adamantly opposes outsourcing sportsbook technology to third party suppliers. Later in our conversation, it becomes clear that this is one of the traits that first attracted him to PointsBet, as an operator dedicated to developing and managing its own sportsbook technology.

Aitken was asked to join William Hill after Waterhouse took over as the business’ CEO in Australia. Ultimately, he ended up overseeing all of trading, operations and quantitative analytics for the British bookmaker’s venture. By the end of 2017, he was in charge of a team of 150 people, but the writing was on the wall for the operator in

the Australian market. Its brand had struggled to resonate with the country’s bettors and, as a result, William Hill drew a line under its trip Down Under, selling the business to CrownBet for AU$314m.

Once Aitken had gained significant experience with Tom Waterhouse and William Hill, he was ready for a new challenge.

There were a number of factors that led him to PointsBet. Chief among these was the appointment of Sam Swanell as CEO of the company. The pair had worked for Tom Waterhouse together in the early years, and Aitken clearly still holds a lot of respect for him, who he described as “a super savvy guy.” Swanell offered Aitken the COO role, allowing him to move back to his childhood home of Melbourne at the beginning of 2018.

As we begin to discuss PointsBet’s eventual focus on the US market, it’s clear that Aitken’s love for US sports also played a significant role in his decision to join. A keen NBA fan, he fondly recalls receiving the number 33 jersey of New York Knicks star Patrick Ewing for his seventh birthday. Aitken is not alone as a US sport fan heralding from Australia, particularly when it comes to betting. In recent years, the North American Major Leagues have surpassed Australian sports in the nation’s betting figures.

For a sports betting company born out of such a US-focused environment, the potential repeal of PASPA in 2018 was always guaranteed to generate excitement for PointsBet’s executives.

During this time, Aitken and Swanell travelled back and forth from the US to Australia as they prepared for PointsBet’s entry. As an Australian company, the executives knew that it was paramount to form relationships with commercial casinos. This would ensure their competitiveness once the bidding processes began.

Entering the US at such an early stage in the company’s development was a big risk. Around the time of PASPA’s repeal, the company had 50 staff globally, and had only accepted its first fixed-odds sports bet in recent months. Aitken explains: “In hindsight, it was very ambitious, the fact that we thought we could come over to America and get into these rooms with commercial casinos, tribal casinos and race tracks, then go up against Bet365, Ladbrokes and every multi-billion dollar market cap gaming company. But at the end of the day, the quality of the people, owning our technology and our point of difference set us apart.”

This point of difference Aitken mentions? PointsBetting, otherwise known as spread betting. This is a form of betting in which the wager pay-off is based on the accuracy of the bet rather than on a win or a loss. Although a well-known form of betting in certain markets, PointsBet was the first to introduce spread betting to Australia. After generating significant success there, the operator was able to recreate that market-first introduction in the US. This allowed PointsBet to stand out from the crowd, providing the operator with a vital leg-up in the race for casino partnerships.

After deciding to make the leap across the Pacific, Aitken and Swanell secured their first market access deal with Meadowlands in New Jersey. Within four or five months of this New Jersey launch in January 2019, the operator had gained around 5% of the online market share, placing PointsBet fourth in the state behind FanDuel GAMINGAMERICA 21

JOHNNY AITKEN

and DraftKings. After achieving such success in New Jersey, the operator was able to acquire market access deals in a number of other states. Last year saw the launch of PointsBet’s first ever retail sportsbook in Iowa, and the operator aims to launch its first retail sportsbook in Illinois imminently.

When PointsBet first entered the market as a foreign company with no brand-awareness, its position today must have seemed far from reach. However, the operator employed a simple but effective tactic to overcome what Aitken describes as a “David versus Goliath” situation. “We saw a sea of sameness when it came to price, very little promotion and very average user interfaces,” he explains. “We achieved success off the back of an intense US focus, and knowing when to use price or promotion as a lever.”

One example of PointsBet’s promotional capabilities lies in its establishment of a Karma Kommittee in the early days of US development. Two weeks into its New Jersey launch, the operator made the headlines after refunding bets on a blown call in an NFL play-off game. The story was covered by both CBS and Good Morning America, providing vital brand-awareness at relatively low cost. Aitken describes this as a real “shot in the arm” in the early stages of the company’s US promotion.

Although PointsBet made its name on the sports betting market, the company has also made significant strides into the world of online gaming. Recognizing the potential value of the US’ online gaming market, the operator has made considerable investment into this area in recent months. As a result, the operator’s online gaming offering is set to go live in Michigan in the early part of 2021, and Aitken is very confident that the company can make serious headway in this area in coming years.

A large part of this confidence lies in the two men in charge of PointsBet’s online gaming expansion. Manjit Singh, PointsBet’s president of global products and technology, was previously global CTO for Aristocrat. As a key member of the gaming supplier’s development, Singh was integral to the rapid-growth of Aristocrat in its formative years.

Meanwhile, Seth Young, chief innovation officer at PointsBet, is deeply connected in the US gaming space, having formerly been employed by both Flower City Gaming and Foxwoods Resort Casino. “With those two guys in the driver’s seat, I feel so confident in what we can achieve,” Aitken says.

Surrounding himself with talented team members like Singh and Young is something Aitken attributes much of his success to over the past few years. When asked about his strategy for leadership, he admits that his style hasn’t always been so trusting. In the early stages of his career, Aitken would often micromanage those beneath him. But when tasked with compiling PointsBet’s US team, he employed a different strategy. “I focussed on hiring people who are smarter and more experienced than me in their fields of excellence. As a group, we truly complement each other. There is a huge amount of trust among the management team at PointsBet.” 22 GAMINGAMERICA

“IN HINDSIGHT, IT WAS VERY AMBITIOUS, THE FACT THAT WE THOUGHT WE COULD COME OVER TO AMERICA AND GET INTO THESE ROOMS WITH COMMERCIAL CASINOS, TRIBAL CASINOS AND RACE TRACKS, THEN GO UP AGAINST BET365, LADBROKES AND EVERY MULTI-BILLION DOLLAR MARKET CAP GAMING COMPANY. BUT, AT THE END OF THE DAY, THE QUALITY OF THE PEOPLE, OWNING OUR TECHNOLOGY AND OUR POINT OF DIFFERENCE SET US APART.” So what’s next for PointsBet? Although the pandemic may have temporarily applied the brakes to the operator’s year, Aitken insists it hasn’t been detrimental to the company’s progress. Demonstrating its increased brand awareness, PointsBet’s turnover has continued to see growth year-on-year, with a rise of 60% for Q4 2020 of the company’s fiscal year, a total of AU$349.4m. Turnover for the full-year was $1.2bn, more than double 2019’s tally, with Australia and the US contributing $830.5m and $321.1m respectively.

Although there has been continued growth, COVID-19 and the subsequent cancellation of most major sports events has certainly offered the operator a chance to collect its thoughts and take a breath. For the time being, PointsBet has been focussing on recruitment in technology, taking advantage of a growing pool of talent as other companies let employees go, and of course, improving its product for the imminent return of sports.

It really seems that Aitken is an executive living his childhood dream. From visiting race tracks with his father as a young boy to securing a position at the forefront of the US sports betting scene. Throughout our conversation, it’s apparent that this was the industry Aitken was born to work in. With such passion fuelling North American expansion, PointsBet’s chances of continued US success are sky-high.

EVOLVE OR PERISH TILMAN FERTITTA

Golden Nugget CEO Tilman Fertitta talks to Iqbal Johal about his ongoing success in business, how the casino operator is getting through the pandemic, and why the future of the gaming industry lies equally in the land-based and online sectors.

“Anyone can be a CEO in good times; it’s about who can be a good CEO in tough times. You’ve got to make tough decisions and that’s what I did, and that’s why we’re still here.” Tilman Fertitta comes across as a tough man. But then again, you couldn’t reach the level of success he has had in business without that ruggedness. After all, the Landry’s, Houston Rockets and Golden Nugget Casino owner has an estimated net worth of $4.2bn and is referred to by Forbes as “the world’s richest restauranteur.”

Tough times don’t come much tougher than the COVID-19 pandemic period. Fertitta reacted quickly to the impending crisis by furloughing 40,000 employees, including thousands at his five Golden Nugget casinos, back in late March. The move drew plenty of criticism at the time but Fertitta tells Gaming America: “I reacted quickly to the pandemic as it wasn’t going away, and laid off and furloughed a lot of people, where everyone else did it later.” The Golden Nugget CEO compared his decision to that of Wynn Resorts CEO Matt Maddox, with the operator furloughing employees of its Las Vegas properties in July long after casinos had reopened, a move Fertitta claimed “didn’t make any sense.”

That forward-thinking led to Fertitta offering a leveraged loan with an interest rate of at least 15% in April, as an insurance policy in response to the potential crippling effect the pandemic could have had on his businesses.

“The loan ended up being $300m because there was such demand for it,” Fertitta explains. “Debt trades just like stocks, and I was the first person out there so if I waited a day the leverage market would’ve traded up and I would have borrowed at 8%. But if you read my book, you’ll see that I have a section that you borrow money when you don’t need it. I 24 GAMINGAMERICA

didn’t need the money and still don’t need it but it’s sitting in the bank and I’ll pay it back. What would’ve happened if I did need it?”

The fact the business is not a public company that can sell stock at times of hardship, Fertitta was adamant he had to make sure the business was secure, especially considering he, like most of the world, assumed venues would be closed for longer than two months. “I originally looked at it as we’re going to be closed until the end of the year,” he further adds.

Although the pandemic wasn’t nearly as bad as first predicted, Fertitta is under no illusions that it still has been the biggest challenge he’s faced in the casino industry, since Landry’s expanded into the sector and purchased Golden Nugget in 2005. While millions of dollars was lost during closures in April and May, the land-based sector is up and running again as “July and August have been very good in the gaming business,” he says.

Like the rest of the industry, the land-based closures forced companies such as Golden Nugget to turn its attentions to the online space. Fertitta is not the sort of person to let opportunity pass him by. As a man who knows all about and utilizes opportunity, Fertitta saw the period as a chance to further establish the online business. And that has certainly been achieved so far.

Golden Nugget Online Gaming (GNOG), which started operations in New Jersey in 2013, has been one of a number of online companies to excel, with Q2 gross gaming revenue increasing 85% year-on-year to $28.2m, while net revenue improved 78% to $24.8m, from Q2 2019. Operating income skyrocketed 74%, up to $8.5m for the quarter. The online growth doesn’t stop there. In June, GNOG followed in

TILMAN FERTITTA

DraftKings’ footsteps by going public, following Landcadia II entering into a purchase agreement to acquire the operator for approximately $745m.

Confidence and belief in your business is another factor needed to reach the top and are both points Fertitta possesses in abundance after hearing him talk about his online ambitions. “We knew GNOG was going to be a very successful business,” Fertitta says. “But with the pandemic happening, we saw there was an opportunity and a couple of other companies went public. We then said we make a bunch of money and we do online gaming as good as anybody, so let’s see if we can take GNOG public, because you know how Wall Street is. They like companies that are very focused where the numbers don’t get mixed up with the sticks and bricks casinos. We’re excited about it being public next month.”

And it’s the forward-looking, proactive mindset that should see GNOG stand ahead of its competitors, considering the online successes it has already witnessed, and that the online shift will only increase the process of approving online gaming

“WE MAKE A BUNCH OF MONEY AND WE DO ONLINE GAMING AS GOOD AS ANYBODY, SO LET’S SEE IF WE CAN TAKE GNOG PUBLIC, BECAUSE YOU KNOW HOW WALL STREET IS. THEY LIKE COMPANIES THAT ARE VERY FOCUSED WHERE THE NUMBERS DON’T GET MIXED UP WITH THE STICKS AND BRICKS CASINOS.” and sports betting quicker, benefitting the operator. Even before the pandemic, Golden Nugget was “already doing more than $20m in annual EBITDA in our New Jersey online gaming business”, Fertitta points out.

“We absolutely see the business focusing more online, as a result of the pandemic. The rise in online activity is definitely a silver lining but we always knew there would be an opportunity. We think our online gaming business is going to be something special in the years to come.”

It would certainly be no surprise if Fertitta’s foresight is true and GNOG becomes a “special business”, considering his list of accomplishments.

After running a construction and development business in the 1980s, Fertitta jumped into the restaurant trade, a business he was very familiar with on the basis his father had a restaurant during his childhood. After investing in a couple of Landry’s restaurants, Fertitta became sole owner in 1988 before taking the company public in 1993, during a time of impressive growth before becoming a private company again in 2009. That was during the financial crisis, another crisis where instead of panicking, Fertitta saw opportunity as share prices went up by 400% in those years, he says.

Now, Fertitta owns more than 600 properties in 36 US states and in over 15 countries, while being one of the largest employers in the nation with more than 60,000 employees.

Then there’s the expansion into sports, with Fertitta buying the Houston Rockets in 2017 for an NBA record of $2.2bn.

Houston is where he calls home, and alongside his copious titles, Fertitta also serves as the chairman of the board at the Houston Police Foundation and Houston children’s charity.

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While that added responsibility might lead to some crumbling under the added weight of pressure, it’s something that, unsurprisingly, Fertitta thrives on.

“I live in Houston, and have been here my whole life”, Fertitta proclaims proudly. “I have lots of businesses in Houston, from amusement parks to aquariums, to probably 70 restaurants and seven hotels in the area. When you’re a leader, you’re a leader and lots is expected of you and by giving back to the community, I’m just trying to do my little share.”

And what’s the key elements to making all his businesses work together? Well, just like any good leader, Fertitta knows how to delegate.

“The key to making all the businesses work together is that I have good people running everything,” he explains.

“I have people that run my restaurant business; I have people running the Houston Rockets; and the online gaming business. I’m very strategic and get involved a lot, but day-to-day everyone gets on with their business and I’m here to point everybody in the right direction and help make decisions.”

But in terms of the casino industry, or “big boxes” as Fertitta refers to the sector, venturing into gaming back in 2005 has been a shrewd business decision that has continued to pay off.

As he explains, “You can make a lot of EBITDA and instead of opening up 50 restaurants, you can open up one casino and you’re only dealing with one general manager instead of 50.

The industry has changed a lot over the years, to the extent it’s not just about gaming anymore, but about the entertainment for the customer. You also do as much business in your restaurants as you do in gaming revenue. People like going to casinos and they like the action. When I bought the business back in 2005, Laughlin and Las Vegas together were doing $30m in EBITDA and last year we did more than $300m in all the Golden Nugget properties.”

As Fertitta mentioned earlier, it’s been a quicker than expected upturn in fortunes for casino uptake since properties reopened. Golden Nugget’s Lake Charles venue reopened the casino floor on 18 May, with the rest of the properties in Las Vegas, Laughlin, Atlantic City and Biloxi following suit in the following month. Just like the rest of the US and the majority of casinos worldwide, Golden Nugget had to implement strict health and safety measures to combat the spread of the virus. That included personal protective equipment (PPE) for all staff, facemasks for guests, social distancing, screens separating gaming machines, temperature checkpoints and capacity limits, among other things on an extensive list.

Some industry analysts believe the measures in place at casinos will prevent a quick recovery, with 2022 predicted as the year where business will start to ‘normalize’ in the sector. Fertitta acknowledges that limits do have an impact on operations, saying, “There’s definitely capacity limits right now in our casinos. If there wasn’t, we’d be doing even more 26 GAMINGAMERICA

business.” But he has more optimism than those analysts do and is more than satisfied with how business has been since operations were resumed.

“Right now, we’re holding our own even with reduced capacity and measures in place, and we’re very happy with the way things are going currently.”

In terms of surviving through the pandemic, Fertitta is adamant that has already happened. “We’ve recovered from the pandemic, in terms of the fact venues have now opened up again,” he says adamantly. And for the future, of course it’s all about opportunity and very much the continued focus of Golden Nugget’s land-based casinos, despite an online acceleration.

“We’re out there right now looking for opportunities. We’re opportunists and that’s what I’ve always been and that’s what I’m looking for right now,” he adds. “The online business is very much a focus and the sticks and bricks is very much a focus, not one more than the other.”

“THE KEY TO MAKING ALL THE BUSINESSES WORK TOGETHER IS THAT I HAVE GOOD PEOPLE RUNNING EVERYTHING. I’M VERY STRATEGIC AND GET INVOLVED A LOT, BUT DAY-TO-DAY EVERYONE GETS ON WITH THEIR BUSINESS AND I’M HERE TO POINT EVERYBODY IN THE RIGHT DIRECTION AND HELP MAKE DECISIONS.” There’s a lot to admire about Fertitta. From speaking to him, it’s immediately clear that he’s a proactive businessman who is always looking for that next opportunity. That’s emphasized from the leveraged loan as an insurance policy against the pandemic, as well as other measures to safeguard the business during the crisis and capitalizing on the digital future by taking GNOG public.

It’s also hard not to notice his tough exterior and traditional values, which is what you’d expect from someone who’s been making a name for himself in the business world since the early 1980s. But those traditional ideals, continuing to focus on the land-based industry, as well as the forward-thinking vision expanding where the future lies with online, will only help Golden Nugget continue to evolve and grow, and take it to the next level.

JASON ROBINS

BUILDING AN ENVIRONMENT FOR SUCCESS From a home office in a spare bedroom to the multi-billion-dollar public corporation it is today, CEO Jason Robins tells Tim Poole the DraftKings story.

You don’t have to look much further than Jason Robins’ love of sport for his inspiration from a young age. “I was a big sports fan from as early as I can remember,” the DraftKings CEO tells Gaming America, “I can’t remember watching TV without sport.”

Combining that love with his passion for mathematics and business, Robins and his two fellow co-founders, Matt Kalish and Paul Liberman, are today synonymous with the daily fantasy sports and sports betting verticals.

It’s a career path that shouldn’t have surprised anyone, considering Robins was part of over “a hundred fantasy leagues” in college. “I just loved the combination of sports and statistics – and it was social, which I liked.” During his childhood, Robins recalls his “fun way of connecting with statistics,” encouraged by his parents, both teachers. Before fantasy sports, Robins would read the box scores in the newspaper and memorize stats from the night before, getting his mother and father to test his memory the next morning.

The exercise was indicative of “somebody who’s always keeping busy and likes to do stuff” – even today. When Robins isn’t working, he’s trying to experience different things, playing tennis and spending this summer out on the water being two examples. “It’s part of my personality; I get bored sitting still,” he remarks. “It sounds like a cliché but the most important thing is to do what you love.

When you do something you love it doesn’t feel so much like work.”

This perhaps explains why, in a previous interview with Gaming America, Robins spoke of working 70-100 hours a week throughout his career. And yet it could have been very different for him were it not for his love of business. Holding an interest during high school in how lawyers framed arguments, the DraftKings CEO considered studying law. He soon realized it wouldn’t be the right fit. “The 28 GAMINGAMERICA

biggest reason being I don’t think I could sit and read several hundreds of pages and legal briefs without my head falling off,” he admits. Pursuing something more strategic, Robins set off on the road towards a life in business and something which was new to many at the time: the internet.

Recounting the period when the online realm started to take off, Robins says he watched the Amazons of the world closely as they grew. In fact, Amazon CEO Jeff Bezos attended Miami Palmetto High School, the rival high school of Robins’ own Miami Killian. “I remember hearing in the mid-90s about this guy from Palmetto selling books on the internet and it was going to be a big deal,” he says. “I just loved the idea of the internet, being an entrepreneur, disrupting the way people would consume, and I knew the internet was going to be such a vehicle for that.”

Robins’ interest in the practical side of business even led him to consider dropping out of college – before a timely intervention from his father. “My father gave me a lecture… It might have been a little more than advice from my dad,” he admits. “He might have said you’re going to have to find someone else to pay for everything if you drop out. He was an academic and his belief was always go to school and then do more school. He always thought I would go to college, get a professional degree and that’s how you create a good life for yourself.”

While Robins temporarily questioned the benefits of a classroom education, his father’s advice kept him in college, for which he’s thankful. “About a year or two after this whole discussion, the bubble burst and a lot of these internet start-ups that were wall-to-wall at my career fair in college, they were all gone and replaced by banks and consulting firms,” he says. “So thankfully I didn’t go at the wrong

JASON ROBINS

time, chose to finish school and went on to work for a company called Capital One. Everything I learned over the next decade working in corporate America was incredibly important, especially the contacts I made: my two co-founders and many of the people we have at DraftKings today.”

Looking back, he is appreciative of having “extremely supportive” parents who “also knew when to wave the stick.”

With his dad a college professor and mom an elementary school teacher, a lot of how and where Robins grew up influenced him. He did not, for instance, come from a life of luxury and himself enjoys teaching, having taught classes at various stages of his career.

“A lot of my family values are a big part of how I was brought up,” Robins explains. “I was brought up with this mentality that you’ve got to earn and work for everything you get. When I wanted a car, my parents said you’re going to get a job, earn some money and buy it yourself. One thing I always had ingrained in me from an early age is nothing’s handed to you – sometimes it’s not the smartest or who’s got the most talent but actually who works the hardest.”

Considering the sports buff he is, it’s unsurprising to see Robins contextualize his parents’ advice by comparing athletes like Michael Jordan, Tom Brady and Jerry Rice. “What separates these people from being a very good player to all-time greats was the fact they not only had talent but they were willing to outwork anyone around them. That’s a rare combination. I never had anywhere near as much talent as those guys or anyone in my field, so I had to work even harder.”

Heeding the lessons of his upbringing and education, Robins spent five years in marketing and analysis at Capital One after graduation. He then spent a further four years at Vistaprint, specializing in marketing and analytics. In 2012, though, he, Kalish and Liberman made the most significant step of their careers, founding the daily fantasy sports site DraftKings. As it says on their company bio, the trio “thought season-long fantasy was great. But daily fantasy could be better.” Eight years later, it’s safe to say America agreed.

“I remember when it was my two co-founders and me in one of their spare bedrooms in Watertown, Massachusetts,”

“I REMEMBER HEARING IN THE MID-90S ABOUT THIS GUY SELLING BOOKS ON THE INTERNET AND IT WAS GOING TO BE A BIG DEAL. I JUST LOVED THE IDEA OF DISRUPTING THE WAY PEOPLE WOULD CONSUME AND I KNEW THE INTERNET WAS GOING TO BE SUCH A VEHICLE FOR THAT.” Robins remembers. “Now we have over 2,000 people across multiple continents. From day one, we were very focused on the culture we were looking to build. Our passion is still there; there’s just a tremendous amount of passion for the product and the company – more than anything I’ve ever experienced.

I’ve worked at great companies before but never at a company where there was such passion for a product.”

Overall, however, the DraftKings CEO can’t deny how very different both his role and the company have become. That much is inevitable considering where the operator sits today. Following the overturning of PASPA in May 2018, DraftKings pivoted toward sports betting (while maintaining its significant fantasy revenue streams) and launched online wagering in several states. In key states like New Jersey, DraftKings became one of the market GAMINGAMERICA 29

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leaders, going on to open up retail venues, and expand into online and live casino. The ultimate coup, though, was the operator’s acquisition of supplier SBTech, in a deal that also took DraftKings public in April 2020 with an estimated market capitalization of $3.3bn. By August, the company’s market cap was valued at $12bn.

“The things I spend time on have changed a lot,” Robins explains. “In the early days I was very involved in the product and the marketing. It was really my two co-founders and I who created a lot of the initial things in those categories. I still feel a lot of passion for the product and the marketing but I understand my role has had to evolve. Thankfully, I have really great people who oversee those two areas – my two co-founders: one of them oversees product and technology, Paul; the other oversees marketing, analytics and operations, Matt. So it’s been very fortunate to me to have two people that I trust very much and can lean on.”

Equally, Robins is full of praise for the team underneath the co-founders, which includes former colleagues at Capital One and Vistaprint who have grown to oversee nine-figure budgets in marketing and operations. “It’s been fun to watch these people grow; fun to watch them build their teams out,” he remarks. “While I certainly would like to spend more of my personal time on the product, it’s great to have a faithful team that understands the vision, can execute and come up with great ideas themselves.”

But for Robins, going public hasn’t yet altered his role as significantly as he expected. While there are obvious differences for him, such as being very careful about what he says now that DraftKings’ stock is publicly traded, he expresses a surprised tone when commenting, “It’s not really that different.” Fundamentally, Robins believes this is because, unlike many that go public for the first time, DraftKings was already regulated by several states, meaning the organization had built up suitable communications, legal and compliance functions beforehand.

While going public was not a specific initial aim for Robins, as DraftKings grew, it became clear to him a crossroads was approaching. The company would either have to go public or it would make sense to sell it. Trying to compete as a private company, given the competitive nature of the online gaming space, was “not the best way to set ourselves up for success.”

He adds: “To me, selling now felt like: you don’t sell when you’re at the beginning of the curve on the hockey stick. On my end, I try to keep objective all the time and think about what’s best for the company, the shareholders and the employees. After reviewing a lot of different options, we decided going public was best for everybody and so far it’s going pretty well. Hopefully it’ll keep doing so.”

With the COVID-19 pandemic effectively shutting land-based gaming down for a significant period this year, DraftKings conversely saw GAAP Q2 revenue of 30 GAMINGAMERICA

$70.9m, up 24% year-on-year, (pro forma revenue of $75m).

Globally, as well as in the US, online gaming has boomed, with more players at home seeking out entertainment options during national lockdowns. Indeed, less than 1-2% of DraftKings’ overall business is retail-based says Robins.

The “counterbalance” for DraftKings, however, was the halt to the sporting calendar. As sport has returned, the “pent-up demand and natural stay-at-home tendencies” have led to hope of a strong H2 for the operator. “We’re certainly starting to see that in the metrics of the last months or two,” Robins says. “Obviously, though, keeping people home can disrupt the sports season, so hopefully everybody will figure out a way to continue to play and do it in a safe manner.”

But despite those sporting cancellations, the pandemic has affected DraftKings far less than the Atlantic City Boardwalk or the Las Vegas Strip. As the company looks back on 2020, its IPO and acquisition of SBTech will have left a far more significant mark on its financial statements than COVID-19. As you’ll read in Gaming America’s interview with MGM Resorts International CEO Bill Hornbuckle on page 32, even he has commented on the rise of DraftKings, recognizing the competition it provides in the online and sports wagering sectors. So exactly how far can DraftKings go?

“I had great advice years ago – well before DraftKings – from one of my business mentors,” Robins explains. “Everyone talks about changing the world but more important is to figure out where the world is going and getting there first. Figuring out where things are going and positioning the company to be successful in those environments is important.”

From a strategic perspective, Robins highlights the company’s focus on product. He disagrees with others in the industry he’s heard say product “doesn’t matter.” That school of thought places a huge focus on marketing and, although Robins acknowledges its importance (as well as DraftKings’ own marketing spend), he believes user experience is what ultimately creates loyalty. This is especially true, he says, in an entertainment category where people have choices on how to spend their money. He adds: “It’s crazy to say product doesn’t matter.”

As for Robins himself, he emphasizes the people around him: “I think anyone goes as far as the people around them enable them to go. If the ambitions we have for the company are to be achieved, that means we had a lot of really great people that helped. That’s the number one thing for me. If I’m able to continue to grow in my role as an executive, I’ve got to keep fostering an environment where there’s great talent around that wants to be there and has an environment to be successful in.”

He concludes: “I think that’s really the biggest thing for me when I think about growing as an executive. How can I continue to create the best place for the best people to work? Not to say it’s that simple but, in some ways, it is. If you have the best people, usually you create the best things.”

BILL HORNBUCKLE

FROM FRONT LINE TO C-SUITE MGM Resorts International president and CEO Bill Hornbuckle speaks to Gaming America a year after his interview as company COO, and discusses with Tim Poole about his transition into the role and how it was impacted by the COVID-19 pandemic.

“For me, I’ve reached the pinnacle of my career – I literally started out as a bus boy,” MGM Resorts International president and CEO Bill Hornbuckle tells Gaming America.

“I never thought I’d end up a CEO of anything, let alone a company of this scale. My mother would be proud.

She wouldn’t have believed it but she would be proud.”

It’s been an eventful few months for Hornbuckle, who succeeded Jim Murren as MGM Resorts CEO in July after a four-month period as acting CEO. Murren took part in last year’s US CEO Special and the COVID-19 pandemic has ensured a baptism by fire for his successor. But in truth, it’s been an eventful 43 years in the Las Vegas community for the exec. Having left a small community college in New England, Hornbuckle came to Nevada when he was just 18. Inspired by the social environment, he took an interest in the hotel industry, and basketball team the Running Rebels, ending up at UNLV. “I came out here in 1977 and, interestingly, never left,” he reflects. “I’ve been here that entire time. I tried a few times in my career to come off and do different things. Las Vegas back then, there were many characters still lying around – I’ll leave it at that! It was a colorful space, a fun space; I was a kid from New England who just loved it. I loved the sun and was happy to get out of the snow.”

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During our call, Hornbuckle sits in the Bellagio, where last year’s interview with Murren took place and where this one would have were it not for the impact of the pandemic. When he first started out, however, he was only across the lake from the Bellagio, at the Jockey Club.

Starting as a room service bus boy, Hornbuckle worked his way up and ended up at Hilton, before working for Steve Wynn at Wynn Resorts for about 15 years. Learning the ins and outs of the industry, especially through the growth years, Hornbuckle opened the Mirage with Wynn in November 1989.

Hornbuckle recalls: “I took the story from there and ultimately became president of Caesars, and joined MGM Resorts in 1998, the same month Jim Murren joined – our former CEO and chairman. So Jim and I have been on that journey here for about 20 odd years together. I took over the realm here in March of this year as acting CEO and then in July was appointed permanent CEO.” Hornbuckle laughs when Gaming America points out his status as a gaming industry veteran, also fondly remembering the fun times he had upon first joining MGM Resorts. Owning just a property and a half back then, the operator held high aspirations as it built the Bellagio, and Hornbuckle worked with founder Kirk Kerkorian for three and a half years. Those aspirations,

BILL HORNBUCKLE

though, equally extended to internet gaming, which actually took Hornbuckle to the Isle of Man as a brief “entrepreneurial gesture.”

“We set up BetMGM, PlayMGM at the time, and I was in that venture for about a year,” he explains. “We decided the timing was not ripe and ready, particularly from a regulatory perspective, so we put that to sleep. It was at a time when Tony Blair and Gordon Brown had aspirations for up to 40 regional casinos – so think large-scale integrated resorts. MGM Resorts had bought land in seven or eight different places – Sheffield, Liverpool – or had optionality. We pursued that for about three years and over time it got beaten down to a couple licenses. And when Gordon Brown took over it became no licenses, so we exited.”

Hornbuckle’s return to Las Vegas coincided with MGM Resorts’ purchase of Mandalay Resort Group. He points out he never left, technically, though when he did return full-time he became president of Mandalay Bay – a “large convention play” for the operator. It was a role that occupied Hornbuckle until the recession of 2008, which

inevitably brought on change for the company, and would provide similar challenges to those Hornbuckle has faced during his first few months as CEO. Pre-2008, the economy was performing so well and MGM Resorts was making “frankly so much money” in the collective. However, executives ran so-called autonomous places, reporting to corporate for capital and larger-scheme ideas without the company actually running as a single unit. Databases were not merged and, being on the brink of both opening up CityCenter and bankruptcy, the company was pushed to a different place.

“We put together a true corporate unit; I became the company’s CMO at that time,” he explains. “We all got into a room and said who wants to do what – and who can do what? I was the most likely marketing-inclined guy of the group, so I ended up CMO. My current colleague and CFO Corey Sanders became COO and Jim was the CEO at the time. I did that for four to five years. In 2012, I became president of the company and, about a year ago, I became COO and Corey Sanders moved back over to CFO of the parent.”

“WE’RE GOING TO MAKE A MAJOR BET. THE QUESTION IS WHEN AND WHERE BUT I’M GOING TO DIVERSIFY THE COMPANY INTO ASIA MORE AND INTO DIGITAL MORE. THOSE ARE THE TWO BIGGER BETS IN THE TENURE I HAVE.” Now as CEO, Hornbuckle emphasizes his focus on Macau, which has always been one of his remits; he is also chairman of the board of directors of MGM China Holdings.

In the Asian gambling hub, MGM Resorts recently opened up its second property, on top of the four, soon to be eight, non-gaming hotels it owns in mainland China. In the CEO’s words, the growth story has been “pretty incredible,” taking the operator from one and a half properties to almost 30 (counting its Chinese hotels).

Hornbuckle’s transition from COO to CEO was a “bit shocking and a bit overnight,” but not because of any change of duties or altered expectations. It was, of course, due to the COVID-19 pandemic. “At that point we were just trying to deal with COVID and trying to GAMINGAMERICA 33

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dramatically; we’d gone from the low 90%s into the 20%s in 10 days. Even within a week’s time frame, we made a decision to close properties, hopefully leading the environment and community to a safer place. It was interesting, first as interim and then as permanent CEO. We were closed for two and a half months and then began to open slowly one property at a time, so we’ve migrated our way through that transition.”

Considering Hornbuckle’s vast experience in the sector, he is well-positioned to answer whether or not the COVID-19 pandemic is the biggest challenge the industry has faced. While there have been some traumatic moments over the years, such as the recession of 2008, Hornbuckle acknowledges this to be the most impactful crisis the industry has had to endure – both in terms of global reach and duration.

Taking the pandemic “extremely seriously from day one,” MGM Resorts quickly closed its properties, although Hornbuckle admits the operator was yet to understand the “longevity of what was about to happen.” The company laid off a staggering 62,000 employees, half of which have since returned to work thanks to property reopenings. MGM Resorts additionally put in place a seven-point safety plan, with the aid of medical and professional external advice, including the help of Harvard University experts. Health and safety measures will subsequently cost up to $94m for 2020.

“When you go up to a normal blackjack table now, instead of seven places there’s three, you’re surrounded by plexi, the dealer has a mask, you must wear a mask,” Hornbuckle explains. “There’s no smoking, no one can stand behind you, and there must be six feet of social distancing. So the vast majority of our casino environments we have anywhere from 25 to 50% capacity. They’re safer, spread out and don’t quite enjoy the energy they did six months ago. But it’s a fun environment.”

The experience has taught MGM Resorts numerous lessons, including the value of mobile check-in, a project already underway but accelerated due to the pandemic.

At the company’s properties, you can now use your mobile

as a room key, check out on your mobile, order room service via mobile and much more. It’s a vital tool for MGM Resorts’ regional hotels where Hornbuckle says drive traffic is actually up year-on-year in most instances.

Where the operator is going to struggle is large gatherings. At the time of our interview, gatherings are restricted to 50 people, curtailing entertainment and meetings – two key components to conventions. For Hornbuckle, this makes conventions non-existent. The regional market, where drive is 95% of the traffic, is less affected, leaving MGM Resorts in great shape in that area of the market. In Las Vegas, though, it’s very different, with fly traffic of scale a big deal for the operator.

Here, Hornbuckle admits the organization is equally as reliant on Nevada Governor Steve Sisolak as it is its own forward planning. The company is in talks with the Governor about protocol for how to meet safely at scale. As Hornbuckle quips, that doesn’t mean “10,000 people” meeting straight away. But the gaming and hotel industry is hopeful the upper boundary can sit somewhere north of 50 in the near future. “One thing we have here in Las Vegas is space,” he says. “So we’ve been presenting to the Governor a series of protocols and he’s been taking them into consideration. Hopefully we can get some flexibility to get to the next step.”

Another area MGM Resorts is taking seriously is its social impact initiatives – unquestionably even more important during a global pandemic. Hornbuckle quotes figures that show unemployment at 30% in April, with the industry directly employing around 250,000 people, so the company’s responsibilities are not lost on the CEO. “We’ve done many things,” he says. “Everything from an employee relief fund internal to our own staff, Mr Kerkorian’s foundation giving us $4m and the company putting in an additional $6m through employees and other partners. We had massive amounts of food quantity and quality being prepped ready to go out, quickly mobilizing and getting that food out to the community. Our employees each year have committed 100,000 hours of voluntary labor, and they’ve all pitched in, something we take with great pride.

The community’s been hit both by COVID in one context and unemployment in the next.”

“AT THAT POINT WE WERE JUST TRYING TO DEAL WITH COVID AND TRYING TO UNDERSTAND ITS SCALE. OUR BUSINESS HAD FALLEN DRAMATICALLY; WE’D GONE FROM THE LOW 90%S INTO THE 20%S IN 10 DAYS.”

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BILL HORNBUCKLE

It’s been a challenging time for the land-based gaming sector but the operator remains aspirational with its goals.

Where it has even higher hopes of growth, however, is its digital gaming arm, through BetMGM. Last year, we spoke to Murren about the company’s joint venture with GVC Holdings, with the then chairman and CEO clearly demonstrating his passion for sports betting. A key difference one year on, though, is the involvement of online specialist IAC, which recently invested approximately $1bn in MGM Resorts.

“It started with a conversation about sports betting, because obviously it’s caught everyone’s attention,” Hornbuckle explains. “They decided to buy into the parent, because frankly BetMGM for today is 50% owned by GVC and 50% owned by MGM Resorts. It’s not a public vehicle, although it probably will be down the road. But they made a decisive bet; they liked our story and the upside of the stock. Barry Diller of note, as I do, believes this industry will rebound fully and that fundamentally nothing has changed. In the middle of a pandemic, people still come in droves to do what we offer and frankly, we’re at half scale. This gives us confidence in our industry both short and long term.”

With MGM Resorts’ stock “cut in half,” IAC chairman Diller saw the move as an “investment and sports betting/online gaming play.”

Having met Diller 20 years ago, Hornbuckle is understandably delighted by his and IAC’s involvement with MGM Resorts.

“We’re not a digital company at our core so their ability to help us get to a different spot quicker is meaningful,” he adds.

“It’s a big bet on us and frankly a bet on me. He knew the CEO transition was happening and said let’s do something.”

For Hornbuckle, digital gaming is one opportunity to move the needle. He says: “When you get to the scale of our company, you ask what’s going to make a difference and what are your big bets? While you have to take care of your daily business, pandemic aside, the big question for a CEO, particularly a new CEO, is what are you going to do? We have a couple of big bets. One of them is we believe strongly in Asia as a growth vehicle. We’re going to continue to track and monitor what we can accomplish in Macau. We’re excited by Japan; the last big frontier to be tackled, if you will. And we’re excited about all things digital; sports betting will lead the way.”

While Hornbuckle acknowledges there’s been an internet gaming effort for decades, he says the notion of sports betting has begun to break through. At press time, MGM Resorts has launched sportsbooks in eight states, earmarking 11 by year end and having 19 in its purview for 2021. With analysts predicting a market size of anywhere between $8bn and $20bn, Hornbuckle sees the online sports wagering space going the way of the telecoms industry, with a handful of companies people go to for network and trusted brands.

As for BetMGM’s progress to date, Hornbuckle pulls no punches: “Candidly, two behemoth companies got off to 36 GAMINGAMERICA

a slower start than we wanted or liked.” According to him, though, the digital firm is now gaining steam. It’s leading online gaming in New Jersey and looking to leverage its overall unique position, which combines MGM Resorts’ brick-and-mortar prowess with the possibility of earning vacation loyalty points when playing online in your home state.

Yet Hornbuckle is also refreshingly candid when admitting where MGM Resorts is not yet up to speed. Recognizing the operator needs to chase the young male fantasy sports crowd, currently doing the majority of their gaming with FanDuel and DraftKings, the business has agreed to invest a further $250m into its sports betting arm. “DraftKings’ public offering was valued at $12bn plus,” he says. “Is that the right valuation?

Probably not. But I’ll say this: a lot of smart money’s in it. If it’s even half wrong – and I don’t think it is, by the way – it’s still a $6bn valuation. The capital’s following, the interest is there; sports and television need it. So we see it as a massive play for the next four years of our future.”

In the nearer-term, Hornbuckle’s immediate priority is clear. The industry is “of one voice and one mind: and that is to survive the next 18 months.” He is unwavering in his belief MGM Resorts, with massive amounts of liquidity and cash, will survive. But it’s a matter of how quickly the company will return to its former earnings levels. “The good news is we’re burning cash at a much lower rate than previously since reopening,” he explains. “It’s our general view that by the end of 2021 we’re getting back to normal and by the end of 2022 we’re looking at 2023 as a progressive and growth year.”

Mirroring the land-based sector as a whole, MGM Resorts has had to ask “double duties” of its leadership, recently laying off 18,000 of its furloughed workers. In Macau, the operator has the more immediate priority of re-securing its license upon expiration in 2022, while the COVID-19 pandemic has also delayed the bidding process for integrated resorts in Japan. Here, Hornbuckle still sees MGM Resorts as ideally positioned in Osaka, while he also envisions organic growth in Las Vegas. Indeed, he believes the community is receiving a huge boost from professional sports through the success of the Vegas Golden Knights in the NHL and the arrival of The Raiders in the NFL. “We’re going to make a major bet,” he says. “The question is when and where but I’m going to diversify the company into Asia more and into digital more. Those are the two bigger bets in the tenure I have. And hopefully at some point in the future, when we’ve grown out of this COVID crisis, and we’ve got Asia in check and got a real position in sports betting and online gaming, I’m going to play some golf! That’s probably four years from now so we have a journey yet to go on. But I’m proud to be where we are and proud of what we’ve done for the company.”

BILL MILLER

THE SHOW MUST GO ON Bill Miller speaks with Gaming America about forging ahead with G2E after the cancellation of the Las Vegas and Macau shows, and incorporating the virtual component even when in-person ceremonies resume.

BILL MILLER

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It’s been a busy time for US gaming in the last few months and a crucial time since casinos have reopened.

Can you talk us through the industry’s efforts to responsibly reopen?

Clearly the pandemic has shaken the industry. We had a point where the entire 989 casinos across America were all shut down. I’m happy to report that we’re getting closer to a better base line but that comes from a very a deep trough. We are at 87% of America’s casinos that have now reopened but they all reopened with restrictions. For the most part, I think if we were to put a frame around it, most are operating at 50% capacity. And then additionally the design around reopening has been one where you want to make sure you have the proper and adequate testing regimes for your employees because you want to create a safe working environment. Then you want to make sure the customers understand and recognize they can have fun again in a safe manner.

Just a couple weeks ago, the AGA released for the first time our commercial tracker that shows the relative health and strength of the industry on a quarterly basis. We just introduced this for Q2 of 2020, but our intent is to continue this as we begin to climb out of this hole. The gaming market from a casino perspective is really divided into two categories: tribal and commercial. The tribal casinos report in a different fashion so our Q2 tracker only showed and compiled the information around commercial casinos for Q2, and we saw total revenue was $2.3bn for Q2 of 2020, but that’s down 79% year-over-year. We have every indication and every belief that that was the bottom. The monthly numbers are slowly but surely getting better.

When it comes to H2, what are your hopes? As you mentioned it’s slowly progressing month by month, but where do you think casinos can see themselves by the end of this year?

I think bottom line it’s going to be better. Our motto is it’s not about getting open, it’s about getting open and staying open. The way you actually

BILL MILLER

make that happen is by creating a safe environment for your employees and customers. What we’ve seen is that our members have gotten important and relevant guidance from health officials, certainly from Governors and other state regulators in terms of what should be best practices. In many cases, our casino operators have even exceeded those mandates and those directives, or suggested to create the environment that is welcoming because we know this. We’ve all been scarred through this pandemic and that scarring is going to take a significant amount of time to get people to be comfortable with even the small things like going to a restaurant or a theater, or getting on an airplane or going to a casino. All of those things require from the consumer that it’s safe to go out and enjoy life the way you did before COVID-19.

“OUR MOTTO IS IT’S NOT ABOUT GETTING OPEN, IT’S ABOUT GETTING OPEN AND STAYING OPEN. THE WAY YOU ACTUALLY MAKE THAT HAPPEN IS

BY CREATING A SAFE ENVIRONMENT FOR YOUR EMPLOYEES AND CUSTOMERS.” Something that helps with safety is a move away from cash and payment modernization. What kind of progress is being made here across the industry?

It certainly was a top priority for me when I got this job about 18 months or so ago. While I think the industry was making important strides toward payment modernization in a manner that was reflective of consumer desires, what we’ve seen is increasingly because of CDC guidance and other guidance around cleanliness, germs and cash and reducing touch points. All of these things move us closer to a world where the casino industry increasingly is offering digital payments as an option on the casino floor. Importantly, because this is a regulated industry by and large at the state level as it resorts to these sorts of things, or the tribal nation level, there have 40 GAMINGAMERICA

been some statutory prohibitions moving into digital.

What we’ve seen so far is progressive regulators in places like New Jersey and Nevada that have led the way to open up this opportunity and we’re seeing it happening on casinos floors now. It’s happening in a more accelerated fashion than it probably would have before COVID. Can you give us an update on the latest with G2E Las Vegas?

It was a very difficult decision-making process that we undertook with a hope toward holding an actual G2E in Las Vegas in October. Ultimately, after consulting with government leaders, regulators, our members, the exhibitors and our customers, we really went through a process and asked if we could hold a G2E and would it be safe. Also, if we could hold a G2E that would be safe, would there be a market because of all of the devastation that has befallen our industry? Would it actually be a valuable economic endeavor for the people that spend so much money on these booths.

Then the customers could travel from all over the world to come to Las Vegas. Ultimately we made the decision to cancel it for 2020. Similarly, we had to do the same thing in Macau. It was a disappointing but necessary result, but it also gives us the opportunity to think about what the trade show should look like in the future. I’ve had many conversations with CEOs of the biggest exhibitors and many with the operators and we’re undertaking a very rigorous reimagination process that will in my opinion ultimately result in a G2E experience in 2021 that is the very best of trade shows across the world. Not having a physical G2E in October frees up a lot of time to go through that reimagining process with all of the relevant stakeholders, so we’re doing that. In terms of the virtual event, it’s really something that we’ve looked to augment. Some people can’t find time or money to actually fly to Las Vegas or Macau so creating what I call a data hub of information that doesn’t require you to be there in person is something that we’ve always looked to do to layer over G2E live. But in this G2E virtual, our intent is in the fall to run relevant, valuable and educational programming from regulators, political leaders and industry leaders to help them better understand how others in the industry are coping with the pandemic and the economics of the pandemic, and how they’re looking to get to the other side. The virtual show is something we intend to add to the reimagining of G2E in person in 2021.

RICHARD MCGUIRE

INVESTORS CORNER: KEEPING COSTS DOWN Sportech CEO Richard McGuire walks Tim Poole through the company’s recently published H1 results, explaining the sports betting technology and horse racing business’ journey through the pandemic.

RICHARD MCGUIRE

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Following on from our discussion at the end of Q1, could you describe the company’s H1 results?

We spoke a lot in March and last year about managing our costs. We felt our operational costs were too high. Through the first half of this year, we managed our CapEx fairly aggressively, taking it down 44%, which was about £1.5m ($1.9m). We also managed our exceptional costs; they were £1.5m last year and £300,000 this year. And payroll being the biggest cost to our company – £27m last year – we had to take fairly swift action there in March this year. That said, at that time, like many other companies, we had to furlough the majority of our staff because the racetracks and clients were essentially closed. But we did maintain medical benefits, which I think was critical for our staff, particularly in the US. Managing the costs is just going to give you a better platform, though, and a leaner company to work with.

We had to deliver some real growth prospects as we navigate this COVID situation. And I’m pleased to say our online business, our retail online business, however small was up 48%. It was around 3% up only in Q1 and in Q2, with physical venues closed, the online really took off.

Our more important international tote business was up 23% and we also signed up a significant number of contract extensions with clients and a significant number of new clients. In our smaller Bump business, there were a record number of new clients signing up. We diversified in that business to really build on what we did in 2019 by expanding our online capabilities and signing a number of new clients.

We diversified further away from our sole reliance on sports teams within the Bump business, signing up 28 non-profit organizations, which obviously are potentially significantly higher in terms of scale.

So we’re navigating through this. It was a real stress test for our business. Our cash position dropped from the end of February to the end of June to about £9.6m, a drop of £1.4m only, which was better than we’d forecasted. Analysts have forecasted about £9m cash by the end of the year – we wouldn’t disagree with that. The company has no debt. We have a leaner, more agile business going forward and we’ll focus on developing every digital opportunity. Our main KPIs will be creating operational and actual cash from the

RICHARD MCGUIRE

business to maintain investment. And we’re going to focus on the blindingly obvious: higher-margin business across the group. So that means some of the smaller businesses that don’t generate any profitability may be moved on and out of the group. I think historically there’s been a focus on revenue as a core metric and we’re changing that to focus on serious stable growth and profitability rather than revenue.

Considering your heavy focus on the US, how exactly did the pandemic affect your operations there specifically?

We have a number of different business units in the US including our Bump business, which relies on sports events taking place. Historically it relied on spectators attending those events, so they dropped off the radar in their entirety from mid-March, with no spectator sports. That business dropped off a cliff during that period. Thankfully, we did pick up our non-profit organizations and ability to deliver online, so we got people like the Chicago Blackhawks, Tampa Bay Buccaneers and a number of non-profit foundations using our online capability – with some serious success.

In our Connecticut venues, we voluntarily closed the doors in mid-March and two days later the Governor announced all restaurants, bars, OTBs and casinos would have to close anyway. We did reopen our venues in July but realistically from the middle of March through the end of June, all our physical properties were closed.

Our online side continued, albeit there was very little product for punters to bet on, so our venues were essentially closed from March, as well as our Tote business, obviously because all racing with spectators was closed. However, there were a handful of tracks that did continue to run behind closed doors in the US. The revenues from US were down 92-95% from March to June, which makes the results we delivered as a group much better frankly. So it was a really challenging period in the US. Sports are now resuming and around 60% of our venues have reopened, and online and telebetting are still open. But in our some of venues it’s difficult, particularly some of our city center venues.

The Tote business is actually showing some serious growth.

Pretty much almost every racetrack in the US is now reopened and some are allowing a small amount of spectators. So it’s a steady recovery but again the online presence and the online business, not only ours but those across the industry, are actually doing very well as you’d expect. You’re seeing a lot of customers transitioning from going to a physical venue to signing up online for the first time.

When I spoke with you and CFO Tom Hearne in March, you discussed how you would finance this company through the pandemic. Have the scale and its duration so far matched your predictions, or was it worse?

It was actually better. I think we were looking at something 44 GAMINGAMERICA

like £8.5m cash at the end of June. Our international business continued, so although racetracks globally closed, we had got in place an ability to transact volumes globally. Hong Kong horse racing, which is the biggest in the world, still continued to run. They’ve been racing behind closed doors since January; that’s a significant part of our business.

Getting towards the end of June, we were getting more towards £8.9m. We managed to agree some rent reductions so it got to £9.6m. Our cash did drop by £1.4m from the end of February to the end of June. But that’s a four-month period where, realistically, we’re in a global shutdown.

Historically, we had a £27m yearly payroll bill. So I think we did particularly well during that period, coming out the other end significantly better than our forecasts when we last spoke in March.

How exactly did you manage costs and limit your reduction in cash?

With all the race tracks closing and no content for people to bet on, we feared that would continue through the first half.

It’s all very well having a platform; we don’t have online casino.

You’ve got to have something people can bet on. A number of tracks did remain open and we started to see people bet on strange things like Swedish harness racing. There’s a growing appetite from people who want to invest and bet on various products. A couple of race courses in Florida continued and some in the US. But the online improved for us, which was quite nice.

And for some of our US clients, they had their own websites and customers were still betting through their platforms into some of those racetracks, through our technology.

So we’re picking up revenue we probably didn’t forecast we’d get. It wasn’t significant but it was very stable. Our international business, where people bet around the globe through our technology, also did much better than we projected in Q2. Then we really took the knife to our cost base; it was a combination of cutting costs more than we thought and having slightly better revenues than we envisaged when we last spoke.

Despite a lack of clarity on sports events and spectators attending those events, how do you forecast 2021 going for Sportech and the wider industry?

In terms of spectator attendances at sports, I think it’ll be a fraction of 2019. They will be spaced out; it’s difficult at a sporting event not to be touching thighs with the person next to you, quite honestly. So they’re going to have to ease back steadily. 2021 we think is going to be a skeleton of 2019, somewhere in the region of 30-40% in terms of spectator attendances. Assuming we don’t get a major second wave, 2022 we would hope to move back to normal conditions.

SYNERGY BLUE

INNOVATE NOT TERMINATE Gaming America speaks with Georg Washington, CEO of Synergy Blue, about the gaming supplier’s development over the past decade and why the COVID-19 pandemic has sparked even greater innovation.

You’ve been CEO of Synergy Blue since 2009. Could you explain a bit about how the company has developed in those 11 years?

2013 was when we partnered with Augustine Band of Cahuilla Indians. That’s when things began to develop from a very small team. Back then we were developing service window applications and games for IGT. We still do that to this day so we were always in that gambling phase from the very inception of Synergy Blue. We grew very naturally developing these types of products.

The people I brought onto the team were all from the video game industry, so they wanted to build video games.

Even though we were creating these little flash games at the time, they were always saying, ‘Hey let’s build something that’s fun; we don’t play slot games.’ That’s really how the skill influenced or interactive gambling came about.

In about 2016 or 2017 was when Nevada came up with the regulations for skill-style games. Around that time was when we debuted our HAWG platform with multi-player in the skill style. In 2018, we announced a couple of distribution deals and brought out several other games in moving the company forward. In 2019, we came out with our report on 46 GAMINGAMERICA

the state of skill-based gaming, signed further distribution deals and announced our Jade Entertainment partnership for the Asia-Pacific market.

Now in 2020, we’ve kept moving forward in terms of production. We have kept the production team moving at full speed with the aim of G2E. Even when they announced it wasn’t going to happen we kept that goal in mind. We will still be announcing a whole bunch of products around that time.

If you had to pinpoint a couple of achievements in your time as CEO that you were most proud of, what would they be?

Being the first Native American enterprise to be licensed in Nevada with approved products is pretty substantial. It’s pretty much been from dollar zero all the way up now, so it’s been pretty amazing to watch the footprint of Synergy expand out into the digital world as well.

How does Synergy Blue ensure it remains at the forefront of innovation in the gaming sector?

We have many meetings and work with a lot of people,

SYNERGY BLUE

including Nolan Bushnell the founder of Atari. It’s about always looking at what we can do to improve the player experience, how can we simplify or make it more fun.

When we look at the bigger companies like IGT or Sci Games, they’ve had lots of years in development to build up their content, platform and core infrastructure. As a young company getting into the gaming industry and one of the most heavily regulated industries in the world, we have to build, so we’ve been doing that in the background, building up our platforms to make sure we can continue in developing really fun games.

What have been the main challenges posed by the pandemic for Synergy Blue, and how have you responded to these?

COVID-19 in general really did shut down the world and its casinos. Even while casinos are open, some are doing fantastic but others are paying a pretty heavy toll right now because they’re either limited or still closed.

For us, being a supplier to the casino industry, there has obviously been a slowdown from a sales perspective.

However, from a product development perspective we kept that same speed knowing that we are going to have to continue to innovate and be at the forefront.

This is especially important considering the first people who are going to come back to casinos will be a much younger demographic. We did a survey in April this year in which we asked 1,000 gamblers when they expected to return to casinos. We found that younger gamblers were most confident in returning sooner. That seems to

be holding true, at least in the Nevada market and some of the other markets. We think our products help in those types of scenarios.

The pandemic has totally disrupted this industry and challenged it. That also means this industry is very ripe for innovation as operators must adapt to the changing landscape. Synergy Blue’s games are very much designed to appeal to that younger gambler who is used to having their games in their pockets on their cell phones. For any brick-and-mortar business out there that is looking to innovate – which I believe all of them are – there will be plenty of new ways of adapting to the situation.

What would you say is the key to attracting and retaining that younger demographic?

I think it’s just about having fun games. At the moment entertainment is being limited by the pandemic. You have to provide other entertainment aspects. Our games fit into that mix by providing something different to a traditional slot machine. Of course, there’s always a place for a traditional slot machine, but we’re providing something a bit different for that more adventurous gambler or entertainment seeker.

You mentioned that last year you partnered with Jade Entertainment for the Asia-Pacific market. How important will this market be in the long-run?

All our markets are very important for us. Jade Entertainment is in the Philippines and they’ve been under heavy lockdowns for quite some time. Once that market begins to reopen we will see some movement there and in the surrounding South Pacific. The Asia market is a great market for us and our style of gaming. That market has always been pretty heavy in the social pay-to-win style of play. It’s an interesting market and one we’re very excited about.

As we look toward the rest of 2020 and into 2021, what is the absolute focus for Synergy Blue?

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It’s always about building fun games, but also rounding out the portfolio. Then we have some other big announcements coming at the end of October. The company is really moving forward in a lot of ways. We are creating more game titles, and building more momentum with our skill-based games.

We just announced our 2600 cabinet line designed in consultation with Bushnell. We were coming to the finalisation of the 2600 cabinet series just as the pandemic hit, so one thing we asked was how could we make it more sanitary and user friendly. As a result, all the cabinets have Blue Safe Touch – anti-microbial products that are imbedded in the plastics and paint providing a sanitary environment for our players. Added to that we have a UVC air filtration system within the cabinet, which eliminates any airborne germs out there.

SPORTS BETTING

LEADING THE WAY From specializing in Europe to becoming a market leader in the US, Iqbal Johal explores Kambi’s sports betting journey across the Atlantic since the vertical became legal there over two years ago.

The repeal of PASPA in May 2018 was always going turn the focus for operators and suppliers in the industry to the US market. Opening up the sports betting market to be legalized on a state-by-state basis started the free-for-all that has since ensued, with many of the industry’s key companies battling it out for significant market share across the 22 states, which are currently legal.

But none were more prepared for market entry than Kambi. The sports betting supplier got a jump start on the rest by becoming the first to process online wagers in a post-PASPA world, with the launch of the Kambi-powered DraftKings sportsbook in New Jersey back in August 2018.

And the supplier has gone from strength to strength in the market since. Launches in Colorado and Illinois during Q2 2020, partnering with Rush Street Interactive to take the first legal online bets in both states, increased Kambi’s US offering to 11 states where its now live, having delivered market firsts in nine of them. Its US focus was also demonstrated in its Q2 report, with the supplier’s geographical dependency on the European market decreasing to 73% from 77% in the same period last year.

There are several factors to Kambi taking to the US market like a duck to water. First, Kambi is already firmly established as a worldwide supplier, with more than 850 employees across seven locations including London, Malta, Stockholm and Sydney. That means the supplier has been offering NFL, NBA, NHL and MLB for a number of years, giving it a strong understanding in the country’s staple sports. That gave it a firm footing to begin its foray into the US. But as Kambi’s chief commercial officer Max Meltzer, tells Gaming America, there other key elements that have allowed the supplier to stand-out from a crowded marketplace.

“The US has always had the potential to be a huge market for sports betting, and the repeal of PASPA opened up a big opportunity for industry stakeholders,” Meltzer explains.“ The US is a nation of sports lovers, and sporting institutions like the NFL and NBA are among the biggest in the world, drawing global interest. As such, the focus of industry conversation has naturally been on the US over the last couple of years, and we are deeply proud of the growth and success of our US headquarters in Philadelphia, which has attracted talent from 50 GAMINGAMERICA

across the country to support our continued drive in this hugely important market. Forging strong relationships with state regulators has been a crucial aspect underpinning our progress, and Kambi more than any other provider has underlined our proficiency in regulatory matters.”

Being able to broadly differentiate through their technology has also been key. “Kambi partners have the freedom to undertake control of the front end to ensure their sportsbook is differentiated and aligned to their particular brand,” he adds, “building their own client on top our APIs to take complete control of the user experience and allowing them to most effectively direct user navigation.”

From specialising predominantly in the European market to making the jump into the US naturally requires a tailoring of Kambi’s product offering. The biggest difference is the landbased focal point of the US gambling industry, with online betting very much in its infancy. According to the American Gaming Association (AGA), there are 993 commercial and tribal casino properties in operation across the US. That required Kambi to invest significantly in its property offering, to enable it to adapt to the needs of its US customers. And in a post-COVID world, adaptability is key, especially when it comes to supplying casino technology.

As Meltzer outlines: “Prior to PASPA’s repeal, we recognised that having a cutting-edge offering for land-based operators would be crucial, and a particularly impressive marker of our progress here has been the impact the Kambi kiosk has had on how players choose to bet in the US. “Over the past two years, these have generated up to 75% of handle at our partners’ casinos, providing a valuable opportunity for new bettors to familiarise themselves in a pressure-free environment, while having the added benefit of reducing queues for over-the-counter services – quickening the player journey and optimising turnover.

“More recently, the launch of our bring your own device (BYOD) technology has played an important role. With the importance of social distancing set to remain for some time to come, the technology enables bettors to view lines and construct bets anywhere, generating a QR code that can be scanned at the counter or Kambi kiosk, placing their wagers without coming into contact with any surfaces.”

SPORTS BETTING

MAX MELTZER

The importance of migrating from online to land-based has been amplified by the pandemic, which caused all major live sport to be suspended from March worldwide.

That included the big four US leagues, which all gradually returned over the summer, with the NFL back in action in mid-September. That led to the supplier’s Q2 revenue falling 32% year-on-year, down to €14.8m ($17.5m) as a result.

Despite this, Kambi’s offering in less traditionally popular sports such as table tennis and mixed martial arts (MMA) managed to mitigate the loss of the major offerings, which resulted in a slight revenue growth for H1 2020, compared to 2019.

Bearing in mind that was with a reduced contribution from international tennis and major US sports, the virtually full return of live sport, now the NFL is back, is more than encouraging for the supplier. Kambi has used the period to enhance its NFL product, and overall sports offering, with the introduction of the Kambi Multi Builder. This bet builder allows players to combine several event combinations into a single bet for the first time, giving players more freedom and ensuring the supplier comes back bigger and better from the lack of a sporting offering.

The pandemic certainly hasn’t stopped Kambi’s US footprint from growing. In September, just two weeks after the partnership was agreed, the supplier launched a BetAmerica sportsbook at the Islands Resort Casino in Michigan in partnership with Churchill Downs.

Head of trading Simon Noy recently spoke to sister publication Gambling Insider about how adamant he is that the pandemic has brought Kambi’s solution into sharper focus, and the commercial appetite for its services still remains high especially as US states continue to regulate at pace and accelerate to online as a result.

In terms of future expansion, Meltzer delves into detail about Kambi’s upcoming plans. “Launching our partners 52 GAMINGAMERICA

in regulated states is naturally a cornerstone of our growth strategy,” he says. “Aside from our recent partnerships, we are also set to launch the Barstool-branded sports betting app in Pennsylvania with Penn National, with more states to follow.

It’s worth emphasising that Penn has potential access to 19 states should they all regulate sports betting.

“As a technology partner, we exist to facilitate our partners’ strategies, and our track record underlines that our ability to launch operators in new states quickly and in full compliance with all local regulations remains unmatched.”

Specifically in terms of sports betting, Noy expands, adding: “Betting volumes have proved resilient, and our momentum is definitely building as we now look to build on that. Our overriding aim throughout was to protect our staff and the long-term interests of Kambi and our partners, and we can be pleased with our performance and move forward with confidence as we now look to accelerate.”

While Kambi has managed to expand and perform strongly in the midst of the pandemic, there are of course lessons to be learned. As Noy alludes to, the key for sports betting operators and suppliers is to “ensure that you have as relevant a sport offering as possible at all times. If traditionally popular sports suspend their calendars, then your coverage of more niche sports like table tennis needs to be of comparable breadth and quality.”

The ability to adapt quickly to the more niche offerings has seen businesses such as Kambi, stand above the rest during this current period, with the pandemic instead allowing them to ramp up existing offerings rather than being caught out.

And adaption has been key to Kambi’s US journey, which has allowed it to transition from a major player in Europe to a big name in the states. Being able to firm its status in spite of the pandemic is testament to Kambi’s standing in the industry, which is surely only destined to grow further.

“FORGING STRONG RELATIONSHIPS WITH STATE REGULATORS HAS BEEN A CRUCIAL ASPECT UNDERPINNING OUR PROGRESS, AND KAMBI MORE THAN ANY OTHER PROVIDER HAS UNDERLINED OUR PROFICIENCY IN REGULATORY MATTERS.”

US EXPANSION

LAND OF OPPORTUNITY Amelco head of business development Brandon Walker speaks to Iqbal Johal about the supplier’s expansion into the US, and why it’s the market everyone in the industry wants to be in.

They say the US is the land of opportunity, and with good reason. With the largest economy in the world by GDP, and arguably the most powerful nation on earth, any success pales in comparison to breaking the American market. Cracking the US is the ultimate for most businesses worldwide, and that’s becoming more the case in the gaming industry.

Since PASPA was repealed in May 2018 allowing states to legalise sports betting, the vertical is now live in 18 states, and not yet operational in an additional four. Nearly half the country has already legalised sports betting in just over two years, and it’s been a fiercely competitive market to enter ever since.

“Everyone is looking at the US, which is everything in the gaming industry at the moment,” Amelco’s head of business development Brandon Walker tells Gaming America, to reinforce the US’ standing in the industry.

“You can’t knock other markets but every supplier and operator is looking at the US in one way or another and it’s definitely the place that is going to grow and has a lot of potential. Sports betting being legal in the US absolutely presents us with an opportunity.”

And it’s an opportunity they’re looking to grab with both hands. The London-based supplier that specialises in sportsbook and trading solutions was founded in 2006, 54 GAMINGAMERICA

building up its reputation predominately in the European market. It works with a number of tier-one operators such as Flutter and its The Stars Group (TSG) and Betfair brands, along with GVC. However, after focusing on a global expansion, Amelco USA was born in 2018, with an aim to capitalise on the opportunity the US market brings.

“Our strategy at the moment is to expand our footprint as quickly as possible, without biting off more than we can chew,” Walker explains. “But we’re trying to really get in there and establish ourselves as a top supplier in the US. Everyone knew the US was going to be a slower growth and slower getting to the end game, but all eyes are on the market.”

In terms of Amelco’s progress, it’s been quite a rapid rise since that expansion into the US two years ago. The organization’s initial partnership upon entry was with TSG brand Betstars, who together were one of the first to be licensed in New Jersey. The TSG partnership has grown with entry into Pennsylvania and Colorado, obtaining regulatory approval in the state this past July. That expanded with Amelco supporting the launch of BetWildWood in the state, with several other partnerships inked with the likes of BetVigtory, Action247 and BetIndiana, as the supplier continues its rise in the US.

US EXPANSION

But it’s not just the online side of things Amelco is taking advantage of. It has also gone live with three casinos in the Cripple Creek area of Colorado, with a deal imminent in Michigan to expand its retail offering. “Retail wise, kiosks are quite an important piece to the puzzle. In the US, it’s not just an online operation, it’s obviously having the kiosks or terminals in the actual casinos,” Walker reiterates.

Amelco’s recognition in the US is no mean feat in such a relatively short space of time. It’s as if the supplier has been waiting to pounce on the opportunity that presented itself for a number of years, with Walker accrediting its software to the progress made in the country.

Walker said: “The good thing is we have a good reputation in the industry and work in regulated markets. We work with all the top tier-one operators one way or another. Our reputation has put us in a good position to go into the US and go in front of these operators and actually get the deals done. We’re still a relatively small, privately-owned company but do punch above our weight. We have great software and have been building this platform for the last 13 or 14 years, so in terms of scalability and being able to roll it out in multi-states is something TSG has been very impressed with.

That’s in terms of the architecture and the way we built the system, so if TSG decide to move into a new state, we’ve designed the system that gives them the ability to drop a new instance and have a new brand and manage all of these states from one singular back office. Talking about scalability, by the time the entire US is legal to offer sports betting, they’ll be running it from one back office, and every state will be its own brand and channel. A lot of the core functionality is what we initially built for the tier-one operators because they have multiple brands and operate in multiple countries.”

The potential of the market, especially with sports betting, is another draw that inspired Amelco to make the leap to the US. It’s no secret just how popular sports are in the country, with the NBA, NFL, MLB and NHL among the biggest sporting brands in the world.

As Walker explains: “US sports are massive in terms of people wanting to punt on it, and as we all know the Americans are sports mad. In the UK and Europe, Saturday afternoon is usually the pinnacle of sports, whereas in the US, every day is the equivalent to a Saturday, which is unbelievable. There’s a lot

of potential over there and we’re looking forward to it.”

But breaking into the US certainly wasn’t an easy process.

With legislation passed on a state-by-state basis and the process complicated by tribal gaming compacts, the everchanging regulation presents an ongoing challenge to any operator or supplier looking to expand its US footprint. Walker became familiar with the complications during going live in New Jersey, having to deal with the state’s Division of Gaming Enforcement (DGE), which will have its own procedures and regulations in place, that differ from other state regulators.

“Breaking into the US was very much a complex process,” Walker admits. “We had to get our platform certified by the DGE and their gaming laboratory. There’s a lot of red tape and a lot of things you have to do. Many smaller software suppliers underestimate what it takes to get a platform live in the US. You’ve got to comply with the Wire Act, everything has got to be within the state and comply with the state.

There’s all the KYC stuff and third-party software you have to integrate too in order to comply. There’s a hell of a lot of work that goes into getting licences in different states, but we’ve managed to turn it around pretty quickly.”

However as much progress Amelco has made in short space of time in the US, Walker knows it’s just a start, and efforts have to be stepped up in order to stand out from an already crowded market.

“From our side, we want to get as many sites live across as many states as we can,” Walker adds. “We also want to prove to everyone that our system, apps, technology and sports betting solution is up there and can compete, if not beat a lot of the current tier-one operators that are out there. We’re looking to capitalise as much as possible; the more sites we have out there, the more people will know we’re live across multi-states, and we can prove to the industry as well as the public that we’re here, and here to stay and looking to make our mark. We’re pushing hard to win as much new business as possible.”

And despite the current COVID-19 pandemic postponing certain launches, Amelco has still been able to sign two deals during the period, and Walker states its still on the right track.

Given how far Amelco has come since entering the US, expect that track not to waver heading into 2021 and beyond.

“FROM OUR SIDE, WE WANT TO GET AS MANY SITES LIVE ACROSS AS MANY STATES AS WE CAN. WE ALSO WANT TO PROVE TO EVERYONE THAT OUR SYSTEM, APPS, TECHNOLOGY AND SPORTS BETTING SOLUTION IS UP THERE AND CAN COMPETE, IF NOT BEAT A LOT OF THE CURRENT TIER-ONE OPERATORS THAT ARE OUT THERE.”

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TABLE TRAC INC.

AHEAD OF THE GAME Chad Hoehne, CEO, president and founder of Table Trac Inc. has known for a long time that preparation is vital for longevity in business. Here, he discusses how inspiring customers is the key to making his systems work, especially now with increased measures in place to ensure personal safety.

What do you see as your most urgent priorities concerning casino management now that properties are doing their best to get back to business and recover lost revenue?

Finding ways to support our customers’ needs to re-open responsibly has been our focus. When COVID-19 hit, we listened and learned the repeated lessons to keep social distance, and clean and disinfect every surface you touch. By May, those lessons were put into action by our development team by innovating and patenting Dynamic Auto Social Distance, and auto Clean and Disinfect shutoff into our CasinoTrac casino management system, providing those features to our casino customers at no charge.

CHAD HOEHNE

Can you walk us through your career in the gaming industry? What was the impetus to first get involved?

Coming from a finance, computer, and electronic manufacturing background, I watched as IGRA brought successful casinos across the country. I wanted to apply my computer and electronic manufacturing experience to serve this exciting and profitable business segment. In 1994 there was not an automated data tracking system for pit and table players. Filling this need was the origination of Table Trac Inc. and its patented Table Games Management and Table Player Tracking system.

You've been at Table Trac for 25 years. Can you describe first how you've been inspired and motivated to stay with one company for so long, and, second, how Table Trac has been able to remain vital as the industry has changed and evolved?

Since our earliest systems, every feature enhancement would inspire our customers and developers to think of new ways and new conveniences the system could provide. It is exciting and rewarding to bring those ideas to life in the system. That makes working here very engaging and fun.

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How have you been personally challenged to keep Table Trac functioning at a high standard through the last several months, especially at the height of lockdown?

Our efforts to create, test and gain regulatory permissions to deploy the Dynamic Auto Social Distance and Clean and Disinfect auto-shutoff features in time for our casino customers to open made it easy to stay highly engaged and focused. It gave us purpose and a goal to focus on during the shutdowns.

Can you talk about Table Trac’s strategies to help casinos build more robust and resilient contingency measures in regard to VIP programs, accounting and IT systems?

Helping casinos build self-sufficiency within the casino organization instead of dependency on outside services and parties is our philosophy. A self-sufficient casino is the best contingency against external chaos. That is why our CasinoTrac management system training staff is so critical to our business.

It is the vehicle to deliver the full value of the system and help our business partners gain self-sufficiency.

When do you envision a return to a general sense of normalcy?

How is 2021 shaping up?

I believe that this last six months will cause casino owners to re-evaluate every aspect of their casino business and the value they’re receiving from their CMS systems. When that occurs, Table Trac Inc.’s CasinoTrac easy to use, easy to maintain system stands out. I believe 2021 will be a very good year for us.

FANTASY SPORTS

PUTTING THE FAN IN FANTASY Ezra Amacher speaks with Fantasy Sports Interactive CEO Dennis Tsalikis about reaping rewards in the US due to timely partnerships fueled by a determination to compete in the big leagues.

DENNIS TSALIKIS

Dennis Tsalikis doesn’t hold back when describing the challenges of running his own fantasy sports betting vertical.

“When you’ve built your own start-up company, every year is difficult. Every month is difficult,” he says.

As CEO of Fantasy Sports Interactive, he wants to transform the way people play fantasy. That’s a challenge daunting enough during good times, but the coronavirus added another layer of complexity. With most of the world’s sports leagues off the grid for swaths of spring and summer, FSI had to do its best to adapt to the unusual climate.

“We were focused to keep our coworkers calm, to shift all our energy to the development of new products as we’ve been with 60 GAMINGAMERICA

half of sports in action for three months,” Tsalikis says. “To gain the most, we repaired all the new products to be ready when the season started again in the middle of June.”

As it turned out, June proved to be a fruitful time not just for the return of sports but for FSI’s emergence as a serious player in the sports betting industry. The company entered a strategic partnership with Scientific Games that will provide FSI’s trademark Fantasy Sportsbook to SG’s wide-reaching network.

Fantasy Sportsbook fuses fantasy and traditional sports betting by allowing customers to wager on fantasy-like items.

For example, someone can wager whether a team will hit a certain number of fantasy points during a game’s first period.

FSI, which launched in 2012, is the first company to offer betting-oriented fantasy sports. Though the company already has partnerships domestically in Greece and in regions such as South America, the SG deal announces its arrival on the global stage.

“We are very close to announcing in the next month hopefully the first client through Scientific Games,” Tsalikis says. “So this is going to be a great success. I think it’s a great opportunity not only for US but for Europe and globally to introduce the fixed odds solution to the whole world.”

FSI’s easiest sell might be the United States, where consumers are more familiar with fantasy sports through DFS sites like DraftKings and FanDuel. The company is targeting New Jersey in particular, where online sports betting revenue hit $29.6m in July. Once FSI obtains a proof of concept in the US, it expects to steadily market its product beyond the Garden State. Tsalikis believes his company is uniquely suited to succeed in America.

“Fantasy in the US is mainly offered as a pool game,”Tsalikis says.

“But what we are offering is unique, innovative and I think going to have great results in the US because it combines the sportsbook elements that betting operators like and the fantasy sports that the US is so familiar with.”

FSI has spent the last couple months staying nimble by zeroing in on what it can control: its own product. When FSI’s first SG clients

FANTASY SPORTS

are ready to offer the Fantasy Sportsbook product later this year, Tsalikis expects a secure launch.

“This company knew our target before the coronavirus,” Tsalikis says. “We have invested in our company to have high skilled people that are able to succeed under any circumstances. I think we have succeeded in that. We saw that after this lockdown we were in for three of four months, we’ve seen that we've reached our targets. We've done the developments that we wanted to have, and now we’re focused to deliver and support the contracts we have.”

Though the coronavirus has caused havoc for many segments of the betting industry, one plus side may be that US regulators are more willing to green light new products like what FSI is offering. Tsalikis is bullish that this will lead to more opportunities.

“WHAT WE ARE OFFERING IS UNIQUE, INNOVATIVE AND I THINK GOING TO HAVE GREAT RESULTS IN THE US BECAUSE IT COMBINES THE SPORTSBOOK ELEMENTS THAT BETTING OPERATORS LIKE AND THE FANTASY SPORTS THAT THE US IS SO FAMILIAR WITH.” “I think that we’re going to have a very different behavior from the regulators because they’re going to try to regulate as many products as they can because this is an important revenue for states,” he says.

“As we now have reached out to a couple of them, we can see that they’re very positive to license the fixed bet solution.”

Finding success in the US will be paramount to FSI’s ambition to eventually expand into much of Europe. While American customers have more experience with fantasy than their European counterparts, Tsalikis expects the game to catch on in both continents quickly.

“I think this transformation is going to help fantasy be a standalone product in the next three to four years both in Europe and in the US,”Tsalikis says. “From our perspective, what we’ve done

in our roadmap is that once we’ve finished the development of this sport we want to offer in the next couple of years, our product roadmap is to go through live betting.”

In the near term, FSI’s focus is on reaching its target customers through the remainder of the coronavirus. Committed fantasy players, Tsalikis points out, tend to be people in their 30s who have a steady job and decent salary. That demographic may be more immune to the pandemic’s economic implications than others, but the wider industry will feel pain for some time, Tsalikis believes.

“I don’t think they’re going to have an effect only on fantasy sports, but I think long term they’re going to have an effect for the betting industry,” he says. “I think the operative spending for the gamblers is going to go less in the next couple of years.

We can see in the pandemic we have a lot of loss of income for a lot of people. We’re going to know in the next three to six months what effect the economy will have (on fantasy sports) after this pandemic hopefully ends.”

With less discretionary income to pull from, Tsalikis is resolute that betting will become ever more specialized. For a company like FSI, that means less room for error but also an opportunity to double down on existing players.

“We have to take advantage of this and offer more targeting products to gamblers and I think the gamblers are going to be more careful about what they’re going to play,” he says. “I think they’re going to play products that they’re more confident they’re going to win than have fun bets or playing bets with one dollar to win $1m.”

The sports league shutdowns of spring and summer 2020 gave FSI time to reinvest in its existing products, but the return of sports was just as exciting. The company saw consumers were eager to wager once games returned, and with a loaded fall lineup on the cards, the returns could be huge.

“I’m very confident on that, because we have case studies like the German Bundesliga or the Champions League in a short year that we have managed to work it with the coronavirus,” Tsalikis says. “So I think NFL, Premier League or NBA, what they’re doing now with this bubble, everyone now is prepared to have consistent championships. If you have consistent game weeks and consistent time frames of the championship, we will see an increase of revenue not only in fantasy sports but in the betting industry in total.”

By the time 2021 comes around, Tsalikis expects the sports world to have returned to a state of near-normalcy with the addition of carry-over events from 2020. If the timing is right, FSI will be entering the pockets of sports bettors right as summer 2021’s biggest events roll around.

“I think everything is going to go smoothly,” he says. “Not excellent but smoothly. I think 2021 is going to be an exciting year for everyone because we’ve seen that a lot of big events have been shifted from 2020 to 2021 like the Euros. So according to the time frames, it’s going to be a full year.”

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PRODUCT REVIEW

FROM THE FLOOR Gaming America previews some of the newest products for the gaming floor, from cashless payment solutions to UV disinfectors.

KONAMI GAMING: SYNK31 SYNK31 is an all-in-one Title 31/AML system by Konami Gaming, Inc. Using one seamless login, casino employees can complete all the forms and reports necessary for compliance, including the multiple transaction log (MTL) form, negotiable instrument log (NIL) form, suspicious activity incident (SAI) report form, currency transaction report (CTR), know your customer (KYC) reviews and much more. All necessary AML information is captured and compiled with near real-time results, leveraging the industry-leading data architecture of Konami’s award-winning Synkros casino management system. Compared to other AML systems, which often require administrators to compile information from across multiple locations, SYNK31 stores all information for each patron/case in one place for true case management.

SYNK31 was specifically developed with a focus on efficiency, speed, connectedness and consistency, which are key to enduring property compliance. It’s a robust, single location for administrators to gather, track and review all patron transactions at the property, allowing operators to identify and respond to incidents as they occur.

Konami’s Title 31/AML system provides comprehensive case management, empowering operators to seamlessly compile all reporting, time stamped notes, files, screenshots, photos, videos and emails associated with a patron or incident, as a one easy package. The systems also alerts permissioned reviewers and supervisors when a CTR or SAR may need to be

SYNK31

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filed or a KYC review may need to be completed, in order to ensure all filing requirements are addressed by the employees responsible. It also supports automated upload of IRS and FinCEN forms. SYNK31 stores all data, alerts, attachments and dispositions for a minimum of five years, as a reliable archive for ongoing property reference, review and protection. And when used with Synkros, it requires no additional server hardware, thereby reducing hardware investment and maintenance.

For more information, visit www.gaming.konami.com

INCREDIBLE TECHNOLOGIES: SCATTER BLAST GAME FAMILY Incredible Technologies’ Happy 8’s and Jolly 8’s introduces an innovative accumulation mechanic on their Infinity V55 cabinet. The Eastern-inspired titles feature Scatter Blast, a new game family in which players collect scatters for bonus events, progressives and added wilds over a cycle of eight spins. Strong Scatter Blast performance indicates slot players everywhere have grown to love persistent features and the added strategy behind accumulation gameplay. In Happy 8’s and Jolly 8’s, the number eight is luckier than ever.

On a player’s eighth paid spin, all collected wilds are released to the 40 line reel set below for astounding wins. Progressive and bonus scatters accumulate in their respective meters and are awarded as soon as their meter is full. After eight spins, all bonus and progressive collections are reset to begin the fun all over again.

Three bonus scatters accumulated in the meter overhead trigger and retrigger eight free spins. Any collected wilds from the base game are carried over to free spins where collected wilds are active on the reels and shift with every spin. All the accrued wilds and features carry back over to the base game to finish up any reaming spins in the cycle for even more chances to gather wilds and win one of four progressive awards.

Happy 8’s and Jolly 8’s are bringing the luck of eight to slot floors across the nation with anticipation-building gameplay.

PRODUCT REVIEW

processing, the high-speed capabilities of the V Edge have never been seen on a mid-sized sorter. With a processing speed of up to 1,200 banknotes per minute, the V Edge is the fastest compact sorter available to the casino market today.

Its quickness, paired with a large feeder capacity of up to 2,000 banknotes, makes the V Edge a reliable partner and strong performer in the count room.

CONFIGURING TO FIT YOUR NEEDS The V Edge is versatile, configurable and expandable as your requirements change, providing a future-proof long-term investment that will adapt with you. By adding modules or swapping module types, its flexible design allows the casino to easily scale up and down operations. This enables simple upgrades in the field with minimal impact on day-to-day operations. Dual flexi-pockets and optional strapper pockets also empower the operator to configure the V Edge to fit their needs.

PROVIDING THE TOTAL CASINO SOLUTION

HAPPY 8’S AND JOLLY 8’S

V EDGE

When used with ECM Edge software and JCM’s ICB system, the V Edge becomes more than just a currency sorter. ECM Edge ensures seamless integration with your casino accounting software and enables accurate TITO and 2D ticket tracking and reporting. ICB tracks assets from JCM’s award-winning bill validators, through the drop process, and to the count room. Together, the V Series, ECM Edge and ICB system are the total casino solution, giving the casino more visibility

BLUBERI: MAMMOTH LEGEND

Versatility at its core, the V Edge is the next generation compact sorter for your casino count room. TITO processing, optional strapper pockets and seamless integration with your accounting system through our casino cash management platform ECM Edge and the JCM Intelligent Cash Box system (ICB), means that the V Edge provides you with the total casino solution.

V EDGE

PROCESSING BANKNOTES AT THE FASTEST SPEED IN THE INDUSTRY Leading the way in efficient and intelligent cash and TITO

Bluberi continues to surprise and provide innovative and exhilarating games, such as brand-new Mammoth Legend, introducing thrilling bonus features and excitement from beginning to end.

Woolly mammoths are considered one of the most fascinating sources of myth from the Ice Age and Bluberi’s new game celebrates the wild side of these commanding animals at their zenith. The game combines engrossing graphics and lucrative features with high-quality sounds that will stampede across your senses.

Showcasing dazzling designs and player favoured features, Mammoth Legend was conceived to provide players with a mammoth sized gaming experience.

Keep alert and watch out for that bonus symbol on reel 5, or choose among coins on the screen, discover the Volcano Bonus and then match three identical Jackpot symbols. Be guaranteed to win a jackpot and, even better, you could boost your Jackpot and end up achieving huge wins with one or more Jackpot Boom symbols.

Collect all the Mammoth symbols you can while playing the Mammoth Bonus, trigger the Multiplier Wheel and GAMINGAMERICA 63

PRODUCT REVIEW

over multiply its operation. your wins by two, three or five. With all these prehistoric features, one might be walking out of the casino with gargantuan amounts of cash.

Stay tuned for this new and exciting game, and brave the extraordinary Woolly Mecca, with Mammoth Legend.

MAMMOTH LEGEND

JCM GLOBAL: TITA SILVER TITA Silver brings the functionality of an ATM and a redemption kiosk to table games. It provides three key benefits to operators outlined here.

INCREASING TRANSACTION OPTIONS TITA Silver brings players more transaction options directly at the table game. Table games equipped with it enable players to buy-in with a debit card POS transaction at the table, buy-in with a TITO ticket at the table, or convert chips to TITO tickets before leaving the table. Players can use TITO tickets they received from other areas of the casino and can also redeem promotional vouchers. Options to add bulk note bill validation and cashless card transfers are also available.

REDUCING CONTACT POINTS, FILLS AND LINES TITA Silver reduces contact points by keeping the chips at the table game and limiting the movement of chips around the casino. Fills are reduced because the chips do not need to leave the table. Lines at the casino cage are decreased because the player can convert their chips to TITO tickets and cash out a TITO ticket at the redemption kiosk.

JCM'S TITA SILVER

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GIVING OPERATOR OVERSIGHT WITH LIVE TRANSACTION MANAGEMENT Centrally managed with the ART Server package, TITA Silver enables operators to monitor live table game transaction activity with real-time data. Statistical performance dashboards are configurable and give operators an abundance of easy-to-read data. Financial reporting enables reduced fills and drops at the table games and audit capabilities for the contents inside the drop box. TITA Silver is also integrated with more than 60 systems and has remote configuration and remote software update capabilities, all of which give operators greater control and increased efficiencies.

KAMBI: BRING YOUR OWN DEVICE The US casino industry has faced new challenges in recent months. However, in embracing sports betting with an experienced B2B provider, operators across the country can give themselves the best possible chance of meeting these challenges, setting themselves on the path to both recovery and resurgence.

With the need for social distancing set to remain for some time, casinos could look to encourage the wider use of mobile devices on their premises to facilitate an experience that is both engaging and safe.

It is here that Kambi’s Bring Your Own Device (BYOD) technology can be leveraged to allow for an easy and exciting on-property sports betting experience conducted in a safe and contactless manner.

The technology enables bettors to view lines and construct bets anywhere, generating a QR code that can be scanned at the counter or Kambi kiosk, placing their wagers without coming into contact with any surfaces.

Some of Kambi’s partners are seeing up to 40% of on-property bets being placed using the technology, underlining its ability to protect betting volumes while allowing sports wagering to be conducted in a safe manner which keeps physical touch points to a minimum.

Furthermore, long queues can run the risk of putting bettors off, especially when they have the option to bet their money elsewhere on the casino floor. Alongside the Kambi kiosk, our BYOD reduces queuing and makes the sportsbook more inviting, quickening the player journey and thereby optimising turnover.

Indeed, the Kambi sportsbook has been proven to produce a sportsbook halo effect, increasing engagement with all aspects of the casino which can be felt across the property. For example, at Kambi’s partner Penn National Gaming’s Hollywood Casino Lawrenceburg, revenue from table games has risen since the introduction of sports betting.

PRODUCT REVIEW

SUZOHAPP: THE TERMINATOR The Terminator is a conveyor-style rapid UV disinfector that provides continuous UVC light to instantly disinfect chips, masks and small items. In front of house operations, gaming items such as casino chips, pit equipment and miscellaneous electronics can be quickly disinfected with no damage or chemical degradation.

Guests protection items such as gloves and masks can also be instantly sterilized allowing for reuse of limited personal protective equipment.

Sterilization can be ongoing and highly visible to promote guest and staff safety and can be a branded centerpiece to promote how your property is handling safety measures. The unit can also be used at back of house for shared staff equipment such as radios, maintenance tools, mask recycling and more to ensure staff cleanliness and preventing community spread to staff and guests.

The Terminator can effectively sterilize up to approximately 150,000 casino chips or 750 masks per hour, with specialized loading procedures and trays. It is compact enough to be placed strategically anywhere and quiet enough to run in front of customers without disruption.

Controls include a front-mount on-off switch, operator-adjustable conveyor speed and tunnel height, auto-stop, and emergency stop buttons located on either side. Available now at Suzohapp, The Terminator disinfector is an ideal tool for your casino floor to limit viral spread and keep your customers feeling safe.

TERMINATOR

IGT: ADVANTAGE RESORT WALLET MODULE The cashless casino revolution is underway, and IGT is leading the charge incashless gaming innovation.

IGT offers three flexible variations of the cashless experience through its Resort Wallet module — an optional, integrated feature of the IGT Advantage casino management system: Carded cashless using a casino-branded loyalty card Players load cash into a secure digital wallet from either the

IGT WALLET MODULE

casino cash desk or any slot machine, and access those funds from any slot machine or table game using the card.

Cardless cashless using a digital wallet via a mobile device: When players use IGT’s Resort Wallet feature with any Cardless Connect-enabled gaming machine, their smartphone is transformed into a secure digital wallet.

They simply tap their phones to card in, then easily and quickly transfer funds between slot machines and table games onsite, as well as between a casino’s sister properties. Funds in the digital wallet can be redeemed for cash at a kiosk or the casino cash desk, or securely maintained in the wallet for the next play session or property visit.

Cashless with an external funding gateway takes the contactless, mobile experience to the next level by combining Resort Wallet with IGTPay, IGT’s proven payment gateway technology, and the services and support of its experienced Payments team.

This enables players to securely access funds directly fromexternal sources such as bank and credit card accounts.

While other gaming industry vendors need to procure and integrate their external funding technology with a third-party payment gateway provider, IGT’s in-house payment gateway services are fully integrated.

In fact, IGT’s proprietary payment gateway product has been operational in global digital gaming and iLottery markets since 2013. IGT can act as the Merchant of Record and manage the external funding function from end-to-end, which lets customers focus on the rest of their operations.

Its payment gateway solution also ensures that after initial set-up, players only require a single digital account and login to make funding transactions.

IGT is the only gaming supplier offering simple one-step technology that enables players to enjoy a truly effortless cashless experience.

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GAMING ARTS

PRODUCT AND PEOPLE Gaming America speaks with Mike Dreitzer, president of Gaming Arts, to find out about his journey in the industry and the gaming supplier’s key to creativity for the future.

MIKE DREITZER

have to have a large enough library of games that people want to play. Surrounding that are great people who can help implement the vision for the product.

At Gaming Arts we have both product and people. We are small but we continue to see great results and promise in the market, even post COVID. We have released new products which are COVID-suited. By that I mean we have products which naturally socially space from one another, so that adheres to all social spacing guidelines. Then we also have Casino Wizard, which is a multi-game electronic table game that gives players the opportunity to play blackjack, craps, roulette and baccarat.

It gives players that table gaming experience without needing to be close to other players.

How has Gaming Arts changed as a company since you first joined almost three years ago?

Tell us a bit about your background and how you first got involved with Gaming Arts?

I have been in the supplier side of the gaming industry since 1999. Prior to that I was at the attorney general’s office in Nevada where I represented the Nevada Gaming Control Board and Nevada Gaming Commission, so I cut my teeth on the regulatory side and then moved over to the supplier’s side.

I’ve held a number of positions within the supplier side. In 2018, I had an opportunity to join Gaming Arts. At the time, David Colvin, the company’s owner, was looking to begin the entry into the slot business. Prior to my joining, Gaming Arts had been a bingo and Keno company. While we still have those roots, we have developed the slot business since 2018.

It’s been a very interesting ride. We’ve had a lot of success but of course we’ve also had our fair share of challenges, most recently with COVID-19. We continue to press on and so far the results have been quite good. So we will continue to be there for our customers in America and across the globe as the world continues to heal from this pandemic.

What are the main things you would say you have learned from your time in the industry that you now apply at Gaming Arts?

First of all, it’s about product and people. At the end of the day, you need a compelling offering for your customers’ players. We are in the content business, or the “hit record business,” so you 66 GAMINGAMERICA

First of all, we didn’t forget our roots. We still have the core business within Keno and bingo. We have continued to provide innovation within the Keno and bingo space, but while we’re doing that we have built a slot company from the ground up.

To be able to deliver machines in the gaming environment, much less the post-COVID gaming environment, is no small task.

You have to concern yourself with every facet of the operation.

You have to have licensing and the ability to build the games, ship the games, sell the games, service the games and then do it all over again. It’s been a gratifying experience building that from the ground up.

As we look forward to the rest of 2020 and next year, what is the absolute focus for the company?

Even during the pandemic we’ve never lost sight of continuing to improve our R&D. To their credit, the R&D team kept going, kept creating games and kept getting them regulatory approval through the test lab. During the pandemic, we continued to grow our library and when we look back I think we will recognize that that was a really good decision.

In addition to that, we’re taking our time to prepare for 2021 and will continue to put out our titles. These will come out in moderate amounts between now and the end of the year, with the hope that 2021 will really turn the corner in terms of recovery.