SPECIAL EDITION AGE 2017
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STAFF
David Attenborough Managing Director and CEO of Tabcorp
YEAR 11. AUSTRALASIA 2017
“We are absolutely focused on building a business that is positive for punters. The Australian Competition Tribunal’s ruling creates a pathway towards a national tote pool and that means better depth and less volatility. But there are a range of approvals and support required from the racing industry across the states to achieve that, and it is certainly the aim of ours to get there”.
EDITOR IN CHIEF Marcelo Valsecchi marcelo@revistagames.com EDITORIAL DEPARTMENT Sebastian Heredia sebastian@revistagames.com Román Frymer roman@revistagames.com COMMERCIAL DEPARTMENT Bettina Mardyks bettina@revistagames.com
200,000
Cristina Arévalo cristina@revistagames.com
Is the approximate number of Australians with gambling problems, according to a recent survey from The Household, Income and Labour Dynamics in Australia (HILDA). The study analised gambling activity and the socioeconomic factors associated with it. Men are more likely to gamble than women, and the incidence of gambling in a typical month increases with age. Problem gambling affects 1.5% of men and 0.8% of women. Men also spend more on average than women when they gamble, with the highest expenditure occurring in the middle-aged and older age groups. Lotto or similar lottery games are the most common type of gambling, followed by scratchies and pokies. However, in terms of the average spend, gamblers spend more on poker, followed by the pokies and then gambling on horse or dog races.
Franco Aboy franco@revistagames.com DESIGN Adnow www.adnow.com.ar TECHNOLOGICAL CONSULTANT
Ing. Gerardo Taccone gerardo@revistagames.com EDITORIAL COUNCIL María Pía Pazzaglini Carlos Cardama Rafael Val
Contents
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28 Martin Storm President & CEO, BMM Testlabs The leader of the company develops a deep and sharp look on the evolution of the gaming testing sector. Besides, he shares his ideas about the importance of engaging and inspiring the company's staff, and the value of building trust in relationships with governments and regulators.
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AGE 2017 Information, excitement and great experience are some of the condiments of this edition of the Australasian Gaming Expo that will include 250 exhibitors and complimentary seminars for all visitors. The show will be the largest and most anticipated in the event’s 28 year history. OUTLOOK AUSTRALIA Up to date, Australian authorities have been unable to adequately balance policies on the sector. The excess of pokies, the lack of a clear online regulation, as well as the need to attract new types of players and global tourists for future mega-resorts are some of the topics addressed in this article. iGAMING INTERVIEW John Pettit, Managing Director for UK, Ireland, Australia & Asia, Playtech BGT, considers there are lots of opportunities for his company in Australia, New Zealand, Hong Kong, Singapore, Vietnam and Cambodia. He also underlines the increasing value of virtual and augmented reality.
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cover story MARTIN STORM PRESIDENT & CEO, BMM TESTLABS
“I'M CONFIDENT WE WILL BE THE BIGGEST GAMING LAB IN THE WORLD” From the rich history of the company to the strong commitment with the communities where it works, the leader develops a deep and sharp look on the evolution of the gaming testing sector. He also shares his ideas about the importance of engaging and inspiring the company's staff, and building trust in relationships with governments and regulators. In your tIme wIth the company, what do you thInk were the key mIlestones that allowed Bmm to progress and led to Its current outstandIng posItIon In the Industry? Bmm has had 2 phases. The irst led by Hugh monypenny and Patrick miller, initially with help from Clif Bellamy, was to establish Bmm as a successful gaming lab in australia. The second led by myself was to establish Bmm as the world’s best gaming lab operating in all key markets globally. One of Bmm’s irst assignments was to assist the Victorian government regulator with the upgrade of the computer systems for its of-track betting system, the Victorian TaB. The result was a highly reliable system with thousands of outlets that ran successfully for over 20 years. Over the course of the next 10 years, Bmm conducted and managed testing, certiication and interoperability tests for the fast-growing australian industry and on behalf of all australian regulators. in 1992 Bmm established a full hardware, software and integration laboratory to meet the compliance certiication requirements for the newly established gaming industry in Victoria. Based on the success of that facility, Bmm further expanded its operations to cover all australian and new zealand gaming jurisdictions. By the late 1990s, Bmm was irmly established as the leading independent gaming systems test lab recognized by all regulated gaming jurisdictions in australia, new zealand and southeast asia. The technical standards Bmm authored on behalf of the Victorian gaming regulator served as the basis for the australian and new zealand Gaming machines national standards, and have since been used in the development of several other widely recognized electronic gaming machine
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technical standards globally. i became CeO in 2003 and acquired the business in 2005. i also changed its structure to make Bmm a U.s company and moved its global HQ to Las Vegas. These 2005 transactions positioned Bmm to truly compete in the Usa and europe, transforming its potential for global expansion. it was clear to me that the industry was globalizing for major gaming manufacturers. They were building product in one market and selling it in many. Bmm had no choice but to expand overseas. The key business strategy was to grow Bmm australia’s domestic market share to act as a inancial platform for international growth. We pushed hard for 2 years to grow Bmm’s share from about 40% to some 60% and then set about our global business expansion. as a result, Bmm opened its south african operations in February 2005, quickly becoming the market leader. Bmm opened its test labs in spain, austria and Peru in 2007; then followed with macau in 2008, singapore and mexico City in 2010, and Canada and italy in 2011. Bmm enjoys market leadership in a number of those
locations today including australia. as Bmm goes into its 37th year, we are very proud to maintain the highest level of independent quality testing in the world. and we are dedicated to becoming the number one gaming lab in north america and south america where we have made extraordinary progress over the last three years. what’s your leadershIp style to Better connect wIth your collaBorators and share Bmm’s culture wIth them? at Bmm, we care. We care about our staf, we care about our customers and we care about the world around us. We strive to be smarter, better, faster and more cost efective for every customer in every regulated jurisdiction around the world. my role is to engage, inspire and to assist Bmm’s staf, at all levels, to meet these values and goals. Our core value of ‘care’ lows through to our customers and regulators. They know that we are honest, trustworthy and will deliver on our word, with their interests appropriately at heart. more complex content and dIfferent types of wagerIng are key elements to understand the Industry. how does your company work to face thIs realIty? Bmm’s unique intellectual property is represented by its testing tools, methods and processes that are constantly evolving to cater for the ever-changing technologies used to deliver a gaming experience, largely through a game. We are continually developing new ways to test
and certify to ensure we are covering the increasing complexity in game features and their mathematics. We have spent a lot of efort in developing our mathematic analysis tools to ensure we are covering all game features and payouts to conirm their adherence to the global regulations. We have also invested heavy into automated game payout testing and gaming communication protocol simulators for identifying issues in these areas. These tools have been utilized many times over the years to retest products where math testing errors have been made by other gaming labs. We also train our technical staf to ensure we are well and truly up to date with current technologies. We are in the process of certifying all our engineers in the isTQB program, a global accreditation that certiies software testers. Bmm is one of only 3 global Platinum members of isTQB. what Is the relatIonshIp Between Bmm and governments? We take our relationships with Government and gaming regulators very seriously. after all, we have been partnering with government since 1981. Working closely with regulators we can better understand their expectations and provide the necessary support. many new jurisdictions do not have in-house resources with the necessary expertise and skills required to develop the standards that will meet the requirements of the intended jurisdiction. accordingly, most regulatory authorities utilize outside experts, such as Bmm, to assist in developing the appropriate standards and requirements for the
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cover story jurisdiction. Bmm has been providing on-site training to gaming commissions for many years. Training courses may cover any matters pertaining to meeting the speciic standards and responsibilities of a gaming Commission. importantly, every gaming regulator needs to recognize that product certiication emanates from more than one gaming lab, so accepting the reports from more than one universally qualiied gaming lab is critical to the normal function of the industry, its economics, the quality of products certiied for approval and the protection of players. Bmm supports competition amongst qualiied labs in every gaming jurisdiction. how has Bmm evolved In the latam regIon? Bmm has been trading successfully in Latin america since we opened our lab in Lima, Peru in 2007. During this time, Bmm has delivered game and systems certiications for land-based and online gaming in many countries throughout the region, including Peru, argentina, Colombia, Panama, Bolivia, Paraguay and most recently, Chile. Of course, Bmm tests to every gaming standard, including those we wrote and to GLi’s standards. and we transfer certiications for products all over the gaming world. Bmm was the irst gaming test lab to be licensed under the new Colombian regulations by Coljuegos in august last year and with a dedicated team in south america we are committed to providing the highest quality of testing services available. We are also assisting customers new to the Latin american region to get their products to market quicker than ever before. Besides, Bmm also has an excellent partnership with many of
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the south american Regulators through our extensive training and education program – The Bmm academy. how can your company help regulators gloBally In order for them to deal wIth new gamIng modalItIes: dfs, esports, socIal gamIng and moBIle gamIng? as the gaming world continues to advance, so do the methods used to test and certify gaming equipment. as new markets open to skill-based gaming, iGaming, fantasy sports, sports betting, social gaming, VLT and more, Bmm continues to be at the forefront of the industry by adapting testing methodologies and scripts to meet these new technologies. Bmm works very closely with regulators to share this intellectual property, and provide advice and input on technical requirements, helping regulators to understand the new technology, and ensuring it can meet their jurisdictional standards. you have Been personally Involved In the worldwIde orphans foundatIon. how does Bmm gIve Back to the communIty? Giving back to the communities in which we live and work is incredibly important to me, my family and the staf of Bmm, and we have implemented a number of programs to help us to do this. as an example, Bmm is committed to making a positive diference in native american communities facing challenges in education, poverty and unemployment. We created the next Generation initiative to help us reach this goal, providing access to inancial and educational resources to tribes
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cover story throughout the U.s. Bmm also supports Opportunity Village in the Us. Our staf has been volunteers at their magical Forest, and we regularly use a number of their commercial services for our business, including shredding and catering for special events. i recently stepped down after a number of years from the Co-Chair position of WWO, a global organization committed to transforming the lives of orphan children and communities in need. as an example of our work, i’ve been
privileged to travel to Haiti with my wife and children for support and care of orphan children. as a human being and a leader i learned a lot from the brilliant Dr. Jane aronson, her wonderful team and the extraordinary people WWO serves. Our hearts are with them. how Is Bmm goIng to achIeve Its goal of BeIng the BIggest gamIng laB In the world? Today, Bmm is the best gaming lab in the world, not the biggest. But i promise you that the progress we have made in the Usa and europe in the last 3 years has shocked our competitors. Our performance makes me completely conident that in the near future Bmm will not only the best, but also the biggest gaming lab in the world. The numbers speak for themselves. Our results in the Usa have been at times been 3X more accurate
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A GLOBAL LEADER IN TESTING AND CERTIFICATION BMM is the longest established and most experienced private independent gaming certiication lab in the world, fully servicing the regulated gaming market. Formed on November 27, 1981, BMM operates 13 oices including 11 testlabs, providing testing & certiication, regulatory consultancy and ield services to customers throughout the world. Globally, BMM is licensed and/or recognized in over 450 jurisdictions and employs some 300 people. Martin Storm, BMM president & CEO, says: “BMM maintains the integrity of gaming by providing manufacturers, regulators and operators with the highest standard of technical compliance in the industry�. BMM ofers consulting and test expertise to achieve product certiication, including customized training and education, for manufacturers, operators and regulators in the gaming industry. BMM is recognized as the leader in gaming technical compliance and conducts seminars and training workshops at conferences and tradeshows around the globe.
than our competitors, saving customers enormous costs in ield maintenance or product replacement or withdrawal. We support gaming regulators and the industry by sharing our knowledge whenever possible. Critically, Bmm does not act like or pretend to be the regulator. We are the lab - we test and certify so that regulators can review and approve. Bmm will continue to maintain the highest level of independent quality testing in the world, assisting regulators, manufacturers and operators in every gaming sector, in every regulated market, to achieve their respective goals.
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> INTERVIEW
MARK GERMAN SALES AGENT FOR AUSTRALIA & NEW ZEALAND, GASSER CHAIR
“OUR CIRCULAR PATENTED HALO BASE HAS BEEN WELL RECEIVED BY OUR CUSTOMERS” The executive explains the importance of establish a strong relationship with clients, in order to offer them quality products that will make their patrons comfortable.
WHICH ARE YOUR MAIN AUSTRALASIAN CLIENTS? WHAT ARE THE CURRENT MODELS OF SEATING SOLUTIONS THEY ARE DEMANDING THE MOST?
We mainly provide our products to clubs, casinos and hotels. The current models of seating solutions that clients are demanding the most are Gasser Players Choice Gaming Stools. WHAT HAS BEEN THE BEST ADVICE YOUR COMPANY HAS GIVEN TO ITS CLIENTS?
We have shown our customers that if they make their patrons comfortable, they will keep coming back. WHICH ARE THE FIVE WORDS YOU THINK BEST DEFINE YOUR COMPANY?
I would choose these ones: quality, innovation, reliability, comfort and service. WHAT IS YOUR CUSTOMER SERVICE PHILOSOPHY IN ORDER TO STAND OUT FROM COMPETITORS?
Listen to what their needs are and deliver accordingly. WHAT WILL BE THE NEW TECHNOLOGIES IN YOUR SEGMENT AND HOW WILL THE COMPANY SURPRISE ITS CUSTOMERS IN THE NEAR FUTURE?
Gasser has a continuous process of product improvement to satisfy customers and players’ daily concerns in operating a gaming facility. The Gasser circular patented Halo base has been well received by our customers and we will be introducing additional features in 2018.
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PROFILE Mark German has 35 years of experience within the Australian gaming industry. In October 2012, he was appointed as the Agent for Gasser Chair Company within Australia, New Zealand and Papua New Guinea. Mark’s previous experience includes 21 years with IGT Australia as a Sales Manager NSW/ACT and 10 years as a Sales Manager for Aristocrat. Gasser Chair Company is a leading manufacturer of slot seating and stackable banquet seating solutions. It has been manufacturing fine quality seating since 1946. Gasser provides seating solutions for many of the world’s foremost hospitality and entertainment venues. The Gasser Showroom in Australia is located at Bankstown Sports Club (New South Wales), which has a unique variety of gaming, conference and restaurant chairs on display.
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> AGE 2017
ROSS FERRAR, CEO OF THE GAMING TECHNOLOGIES ASSOCIATION
“WE CAN’T WAIT TO SEE THE LATEST TRENDS, SYSTEMS AND EQUIPMENT” The show has been re-invented and upscaled to respond to a new and larger space. It will be the biggest ever, generating lots of expectations from exhibitors
What has been the shoW’s evolution, from its starting in 1990 up to the current promising edition? since starting in 1990, the australasian Gaming expo has grown to become the world’s third largest gaming industry trade show and easily the largest gaming event in the southern Hemisphere. visitor attendance for last year’s edition Was the highest in the 27-year history of the event (6,813 executives). hoW are you planning to overcome this amazing number? Which are going to be the most relevant neWs and changes that Will surprise attendants? We achieved the results for the 2016 event in spite of the many challenges that came with what was a temporary 14
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venue. The 2017 event is at the new iCC sydney at Darling Harbour and it will ofer superior access for both exhibitors and visitors alike. it is just a short stroll from the new location to all the attractions of sydney as well as ofering improved loor space utilization and associated services. This year’s event will be the largest australasian Gaming expo ever, with 250 exhibitors across 19,000 square metres of loor space. in addition to ‘up-scaling’ the event to take advantage of the new space, in order to further attract visitors, we have also added two full days of complimentary seminars on Gaming and Hospitality subjects, which are accessible to all registered visitors. What has been the contribution of gaming to australian economy? slot machines were legalized in the state of new south Wales in 1956. Their contribution to the australian way of life includes 140,000 jobs and aU$5 billion (almost Us$4 billion) annually in government revenue, so every person who has ever been to a school or a hospital or who has driven on a road in australia has beneited from slot machines.
hoW Will the tabcorp-tatts group merger affect the market? The merged entity will bring powerful resources and knowledge to the global stage. What about your vieW of the situation of the sector in the south asian countries? With at least ifteen integrated Resort Developments likely to open during the next ive years in the asia-Paciic region, the industry is going from strength to strength. in Which Way you think the latam gaming market may appear as commercial opportunity for investment from australasian companies? Our association’s members already successfully participate in the Latam gaming market and they bring world’s best expertise and vast experience to all the markets in which they participate. What is your opinion regarding the igaming business in your region? can esports, dfs and skill gaming help increase the monetization of this segment? it’s early in the development phase of iGaming, but the convergence of technologies will be interesting. Where do you foresee the industry is actually going? hoW Will age shoW reflect the
INFORMATION, EXCITEMENT AND GREAT EXPERIENCE increasing trend of online, social and mobile gaming? The industry is sharpening its focus on gaming as an entertainment activity, enhanced by technological advancements. We can’t wait to see the latest trends, systems and equipment on show at our exposition. as an organizer, What do you imagine your feelings Will be once this event ends? We’re already very positive about the success of the 2017 australasian Gaming expo, simply because the new location has allowed us to ‘re-invent’ the event.
Scheduled for 15-17th August 2017 at the ICC Sydney at Darling Harbour, in Australia, the Australasian Gaming Expo (AGE) is already the largest and most anticipated in the event’s 28 year history. The show is organized by the Gaming Technologies Association (GTA). In addition to the fact that online visitor registrations are up by 20% in comparison to the same period for 2016, the number of conirmed exhibitors has grown by 30% versus 2016. New gaming technologies are not the only attraction, with 250 exhibitors (including over 50 for the irst time) proudly showcasing Audio Visual equipment, ATM Equipment, Building Services, Cash Handling & Equipment, Consultancy Services, Entertainment, Financial Services, Food and Beverage, Furniture, I.T., Interior Design & Fitout, Marketing Services, Membership Management, Paging & Communication, Point of Sale Systems, Retail, Security, Signage & Displays and Staf Uniforms. There’s deinitely something for everyone in the hospitality and gaming worlds. This year there will be complimentary seminars for all visitors over the irst two days of the expo. Already, over 800 of the complimentary seminar places have been booked, including sessions on venues, research, casinos, technology, cash, investors and a key session (9am on Wednesday, August 16th) where inancial commentator Michael Pascoe will moderate a panel of global gaming supply companies’ CEOs, such as Danny Gladstone (Ainsworth Game Technology), Derik Mooberry (Scientiic Games), John Connelly (Interblock Gaming), Steve Sutherland (Konami Gaming Inc.), Trevor Croker (Aristocrat Technologies) and Walter Bugno (IGT International). Visitors who attend the Australasian Gaming Expo are eligible to win a trip for two to the Global Gaming Expo in Las Vegas, including airfares from Sydney and ive nights at a luxurious Vegas Resort and Casino. Besides, the AGE17 app is available for download at the Apple Store, or via the event website. The app features information including how to get to the venue, transport timetables, an interactive loor plan and a detailed exhibitors list. Some of the main exhibitors will be Aglo Systems Pty Ltd, Ainsworth Game Technology, Aristocrat Technologies, Aruze Gaming Australia, Bingo Australia Pty Ltd, BMM TestLabs, Brintons Carpets Pty Ltd, Crane Payment Innovations, CrownBet, Cummins Allison Pty Ltd, Gaming Laboratories Australia, Gaming Partners International, Gasser Chair Co Inc, IGT Australia, Interblock Asia Paciic, JCM Global, Konami Australia, Nanoptix Inc, Paltronics Australasia, Quixant PL, Scientiic Games, SuzoHapp Pty Ltd, The Bright Group Pty Limited and VizExplorer, among others.
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> AGE 2017
AGLO SYSTEM
LIGHTING SOLUTIONS WITH CUSTOMISED DESIGN
aglo systems (stand 710) are specialists in lighting design and supply of commercial quality LeD lighting for the hospitality and gaming industry, with an end-to-end Project Lighting solution. The
company also ofers customised design and manufacture of unique lighting and architectural features and ittings. Their luxurious creations are perfectly suited for large construction developments, casinos, hotels, restaurants and shopping centres. The Custom Design and manufacture Department works in partnership with architects, consultants & designers to engineer and create
unique luminaires and bespoke architectural features and ittings. aglo systems has the capability and experience to turn the client’s concept into reality and provide 3D designs and photorealistic renders to help visualise the original idea. each and every piece presents its individual challenges and the design team, in consultation with the project stakeholders, work towards a
solution that suits all parties. The company prepares layout models showing how large items it to together, CaD renders, full sets of technical drawings through to prototype assembly to ensure complete satisfaction. aglo has developed bespoke items such
as chandeliers, lamps, drawer handles, feature mirrors, decorative metal work and seating using a range of materials and manufacturing methods. its diverse local and global supplier network enables aglo to deliver projects on any scale or budget to suit any client’s needs.
BETCONSTRUCT
NEW SPRING BME ADDS TO SPORTSBOOK, SOFTWARE AND MORE
BetConstruct is exploring the landscape to better customize its oferings for the australian market. The company travels to the australasian Gaming expo (stand 436) full of energy, bringing new and improved products. it will display an 16
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extensive range of its market-leading products, including sportsbook, Casino suite, Live Dealer Casino and Poker software. The transparent access to the tools and support to achieve the desired level of growth and success for all operators
- that is the priority for BetConstruct. That’s why it will bring to aGe 2017 one of its major projects: spring Bme. spring Bme includes a rich set of products, services, tools and technologies that together provide a complete management infrastructure. The dashboard gives business owners an ability to enable betting and gaming products with a single click, as well as order marketing, legal, accounting, risk management and bookmaking services. at the expo, the
company will also showcase its renowned sportsbook, one of the most complete in the industry. it has a multilingual interface available in four views: Classic, modern, asian and Combo, ofering 30.000 live matches per month for 140+ sports types. Besides, the BetConstruct RnG Casino suite counts more than 3.000 exciting games. The gaming catalogue is always freshened up with exciting games in high-res graphics with attractive design, both proprietary and from other providers. The
BetConstruct Poker software combines all standard poker features in the conigurable user-friendly interface. Four poker styles and guaranteed tournaments increase the player pool and attract new players. The Live Casino provides 24/7 HD quality streaming and real casino atmosphere with multilingual and multicurrency options. moreover, BetConstruct provides a custom solution for those who want to set up an analogue of their land-based casino with live dealers.
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> AGE 2017
AINSWORTH
TRANSFORMATIVE GAMES AND INNOVATIVE CABINETS at the australasian Gaming expo, ainsworth (stand 900) will feature its newest gaming platforms and game content to provide a venue with ‘a Winning edge’. The company will reveal the evo, a dual 24” LCD screen cabinet with a black trim surface, pinstripeedge and dynamic game-driven lighting, lat deck button panel with mechanical bash and a 21.5” digital topper. The cabinet is ready to run new premium titles such as Firepower, Lucky Treasures and Big Hit Bonanza, as well
as a back catalogue of a600 games. ainsworth’s core portfolio will include new standalone and multigame range solutions with more titles due for release in 2017. There are three key multi-game, multidenom packages: 1) multiplay Fire star is mixed with the hottest Play 50 Lines and High Denom titles plus a two level mystery Progressive; 2) multiplay Treasures incorporates ive entertaining novomatic titles that include exciting features with multipliers, sticky wilds and retriggers
plus a two level mystery Progressive; 3) multiplay mustang series is derived from ainsworth’s popular ‘mustang money’ theme. now, ainsworth ofers four amazing ‘mustang’ titles, all in one super-sized package plus a two level mystery Progressive. Besides, the company will demonstrate a wealth of titles in the legacy Double shot, Quad shot, Triple shot and High Denom line of games. it will also highlight innovative content for the a640 cabinet, including stacked Up and the new licensed product
Pac-man Wild edition on the new a640 cabinet that will make its australasian debut at aGe 2017. The title provides allrecognisable Pac-man characters, sounds and imagery loved by people across the globe. Pac-man Wild edition is the irst ofering as part of a strategic partnership between ainsworth and Bandai namco entertainment inc. it ofers players all the excitement of the classic arcade
game, with a thrilling free games feature, a Wheel spin feature and a progressive jackpot. Throughout the game, Pac-man makes appearances ofering players wilds and other fun ways to win. many other highly entertaining a640 products will be prominently featured at aGe, including sky High Link, sky High Jackpots, Players Paradise Gold, King Kong, Double shot Duo Fortune and Double shot Wonders.
Victoria maintaining above loor average performance of 2.59x and 1.89x, respectively. The newest iterations to the Dragon Cash family, Peacock Princess and spring Festival, will be on display at aGe. aristocrat is committed to continuously evolving their hardware and platform solutions and will be unveiling the brand-new Helix XT cabinet at the show. The Helix XT boasts a seamless portrait
gaming experience with a curved, 4K HD screen resolution and exciting game driven LCD topper capability. some notable Helix XT titles include Dragon Link, ofering a premium experience for hold’n spin players, Player’s Choice Opal edition, with seven diferent pack conigurations for operators to choose from, and Pure Cash, aristocrat’s dedicated multi-mid denomination standalone progressive range.
ARISTOCRAT
A CULTURE OF INNOVATION at aGe, aristocrat (stand 100) will be inviting their customers and partners to curve their thinking around the possibilities of games, cabinets, technology, and the future of the gaming industry. The company will be showcasing their most diverse portfolio that illustrates both choice and lexibility for their customers, including cross-cabinet compatible content, venue conigurable platforms and a range of 18 Games maGazine
commercial options accommodating to their customers’ strategies. There will be a strong presence from aristocrat’s latest release to nsW, Dragon Cash. Dragon Cash fosters segment trends pioneered by Lightning Link, such as the familiar hold’n spin feature, scalable bonus prizes and player selectable low to high multi denomination. Besides, Dragon Cash has had great initial success in Queensland and
BRINTONS
IGT
BRINGING INDIAN BAZAAR TO SYDNEY
PASSION FOR ENTERTAINMENT
Brintons (stand 250) will showcase its industry-leading portfolio of carpet that’s at the cuttingedge of design and technology. its stand will be transformed into an indian Bazaar themed space, which is part of its latest collection of stocked axminster carpets, antipodes. The indianinspired theme was chosen in celebration of Brintons’ indian manufacturing base, where world-class practices in employment and sustainability are observed by Brintons. With hundreds of factory staf and almost 100 per cent water-recycling procedures, Brintons is proudly a part of the isO global initiative. The antipodes range, meaning ‘direct opposites’, cleverly brings together contrasting design elements in a collection of ten striking axminster
patterns. Rigid and structured geometrics contrast delicate free-lowing lorals. soft colour palettes balance hard angles. Taking cues from nature and architecture, the designs strike a harmonious balance between colour, texture and functionality. Brintons redeines the way people think about pattern and colour on the loor and the impact carpet can have on an environment. The combination of thoughtful design, experience, innovation and technical knowledge allows Brintons to deliver high performance loor covering the world over. With more than 230 years of experience, Brintons supplies carpet to major commercial sectors, including: hospitality, healthcare, public spaces, leisure, marine and gaming.
at this year’s australasian Gaming expo, iGT (stand 590) will spotlight its renewed commitment to the anz market with the theme: “ignite - a new Direction”. The theme highlights iGT’s local approach to the market, and its passion for delivering more lexibility, quality and innovation to operators. The company will present a robust portfolio of solutions that relect its fresh, forward-thinking commitment to games and systems. The trade show will also give iGT a platform to highlight new members of the company’s local management team, and to emphasize its signiicant investments in the anz market. igniting the new direction in game design is iGT’s new Prize Disk game family, which
includes games such as elephant King and Wolf Ridge. The innovative Prize Disk feature is common to both games and displays the bonus values, free games and jackpots that can be awarded once the feature has been triggered. One of iGT’s most anticipated games will be
its Hyper Hits theme with three games: Longship Legend, The Golden Bow and Lotus Princess. Hyper Hits takes lexibility to a new level with operator-conigurable features such as the choice of a link or standalone progressive. Besides, players can win ive diferent bonus prizes, plus jackpots. The company is also expanding its hot multistar Champion series family with the highly lexible Champion series extreme that features six high-performing iGT games. iGT’s revamped multistar ofering extends beyond
the Championship series, with multistar Dazzling Diamonds and the new multistar all-stars. These games will be featured in iGT’s stand and showcase a lexible mix of volatility and denomination options. What’s more, iGT’s advantage Club system is delivering remarkable leaps in performance for its customers. There’s also the ignite innovation Lab, where the company will demonstrate how its customers can enhance their patrons’ experiences, while driving revenues, increasing eiciencies and building world-class patron relationships.
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> AGE 2017
GLI
IAN HUGHES, EXCLUSIVE TOOLS AND SERVICES Gaming Laboratories international (GLi) will be discussing their exclusive tools and services at aGe. The company’s experts, located on stand 570, are excited to meet with their clients from around the region. also, ian Hughes, australia’s CeO, will be participating on the aGe technology panel Tuesday,
15 aug. The panel participants will be discussing key technology issues and trends and how they will continue to impact the gaming industry. The company is pleased to report that regulators, suppliers and operators are experiencing great success in the ield with the company’s cutting-edge tools
and services. GLi is known for its independent veriication and validation certiication, automated
testing and static code analysis. in order to save time and money, asia-Paciic suppliers have taken advantage of the company’s awardwinning, patented tools, including Point. Click.Transfer.sm, Point.Click.submit.sm and GLi Link®, which allow for suppliers to test their products remotely. serving the global
gaming market with 20 laboratories located on six continents, four of which are located in the asia-Paciic region – three in australia (adelaide, sydney and melbourne) and one in (macau) – GLi specialises in helping small start-ups, large enterprises and jurisdictions reach new markets or expand into existing ones.
INTERBLOCK
SOLUTIONS FOR VENUES OF ANY SIZE Luxury gaming manufacturer and electronic table game (eTG) company interblock has announced plans to exhibit new and existing products at the australasian Gaming expo (aGe) on stand 450. interblock will introduce a new segment of the gaming loor and exhibit its industry-leading collection of Diamond and ministar products including: the new Roulette Diamond station, interblock eTable with Baccarat, multi-Game Video, and ministar Roulette. The Roulette Diamond station allows operators to ofer the Roulette game in a fast-paced, standalone format. it has the same 20 Games maGazine
footprint as a traditional poker machine, itting perfectly into physically smaller venues, and game cycles can be as fast as a standard spin cycle on poker machines. Game play is similar to a poker machine, meaning the player simply presses a button to shoot the ball to initiate the game. Players
can place bets on a standard single-zero Roulette or a doublezero roulette layout, and hit the bash button to spin the ball and start the game. The company’s new eTable is ofered with Baccarat in a ive-seat coniguration and allows operators to simply press a button to change the game to play as a standard
video game or with a live dealer. The eTable gives operators the lexibility to generate revenue with or without a dealer, depending on needs and preferences throughout the week or time of day. The eTable can also support Blackjack games and interblock side bets. The multiGame Video product, a Diamond product, will be launched at the aGe show as well. it delivers an entertaining video experience for Roulette, Baccarat and Blackjack and has the ability to connect to any interblock Diamond automated generator. With compelling audio and visual efects, side bets, and themed virtual dealers that interact directly with
players, the Diamond product line gives ultimate lexibility to operators and draws the attention of any player to any gaming establishment. Finally, the ministar’s automated Roulette generator delivers more than 120 results per hour, which means more betting revenue for the house. ministar Roulette is available with six, eight or ten seats in a single or double zero roulette wheel and ofers settable minimum and maximum limits and settable time limits for player decisions.
Games maGazine 21
> AGE 2017
NANOPTIX INC.
QUIXANT
NEXTGEN, EVOLUTION, NEEDS AND GOALS
FOCUS ON COMPLETE LOGIC BOX SOLUTIONS AND MONITORS FOR GAMING
The company with 20 years in the market is proud to deliver the very best Gaming Thermal Printing solutions. at the booth 273, The opportunity to have a strategic discussion related to needs and goals with the fastest growing printer company in the industry with a reputation for delivering the most reliable, technologically
advanced, and cost efective solutions while surpassing customers support and service expectations. From the latest Paycheck series member, The Paycheck nextGen, to the innovative Paycheck nextGen Terminal and new Desktop model, new revolutionary products are coming to the market that are pushing beyond traditional features and exploring new capabilities with respect to: connectivity, versatility, design and performance. With inGenUiTY insiDe and global
representation, along with numerous global Oem customers such as aristocrat, ainsworth, scientiicGames, and iGT, the company is providing answers to the australia market’s important issues while exceeding customers’ service
and support expectations. nanoptix inc. is a global thermal printer solutions provider for Gaming, Lottery, amusement, Transportation, Kiosk and Point-of-sale markets.
PALTRONICS
PRODUCTS FROM GAMING ENTERTAINMENT SYSTEMS Paltronics (stand 235) will be showcasing a range of products from Gaming entertainment systems (Ges), including the Lucky
22 Games maGazine
Ball Roulette side bet, Lucky Tie, and the Ges Jackpot Poker Room system at aGe this year. Lucky Ball has proven a great success since its inauguration in asia in manila and on sydney based cruise ships. it is now on trial at Crown melbourne. Lucky Tie is an innovative Progressive Jackpot Game for Baccarat which has
just completed an extensive and successful trial and is now operating on over 20 tables at Crown melbourne. The Ges Jackpot Poker system is cu-
rrently being operated throughout australia on over 80 tables, and is now featuring an integrated Waitlist and Tournament manager.
For the second year in a row, the company founded in 2005 will present its selection of gaming computers and monitors, at booth 377. as the only
company focused solely on the design and manufacture of computer platforms for the global gaming industry, Quixant’s product portfolio is optimized to power the latest generation of gaming machines with exceptionally high reliability and long supply lifetimes. Having supplied its gaming boards and monitors to manufacturers in the australian
reproduction that brings games to life. a wide range solutions will be on display, including the QXi-307, a highly cost-efective, fanless control board for two screen eGms. For applications demanding high resolution graphics the 4K UHD-ready QXi-6000, which is capable of driving three displays, provide the necessary added power. also will be demonstrating the newly released
market for almost 10 years, Quixant’s standard and designfor-purpose gaming monitors have made an impact in improving the quality of game content with exceptional colour
QXi-400 which ofers strong performance for two screen eGms. Lastly the QX-50 and Qmax-1, complete with discrete graphics cards, satisfy the most demanding applications.
Games maGazine 23
> AGE 2017 SATELIGHT
DESIGN AND LIGHTING MANUFACTURER, FROM AUSTRALIA TO THE WORLD With 20 years of experience in the market, the company based in melbourne is presented with three of its main products. First, the nest lighting collection takes inspiration from nature through bird nests. Organic, but structured, the decorative lampshade wraps around the light globe. This feature light is available in standard textured white or
black, however can be inished in a wide range of colours on request. Custom nest pendant light versions
can also be achieved through working with our design team. also, drawing inspiration from jewellery, the Lavalier pendant light designs mirror an ornamental necklace. a hand-thrown ceramic or hand-blown glass lampshade adorns the hand brushed brass U shaped rod. Working with local artisans, these pieces are unique works of art as
each pendant light is individual. The Lavalier collection is available to be customised. Finally, the symbol collection celebrates the beauty of brass. a part of satelight’s jewellery inspired pieces, the symbol design pays homage to earrings. The symbol pendant is designed to hang sideways, the hand brushed brass dish relects the light from the light bulb, creating a glorious halo efect. To contrast the front side of the dish, the
reverse has been inished in a hand burnished black. Working with natural materials, the symbol wall light’s warm brass is married with a hardwood timber centre.
SUZOHAPP
LOYALTY KIOSK, INTERACTIVEPROTABLE, BOOTHTV AND CASH REDEMPTION TERMINAL The company provides solution for all applications in a hotel, club or casino. at booth 470, will highlight their Loyalty Kiosk, integrated with a number of Loyalty system providers and
24
Games maGazine
POs companies, the DisplayPro digital sign, featuring a 42” FHD commercial rated screen which is ideal for visual campaigns replacing untidy posters and older back
light sign boxes and their Dual sided LCD Displays, perfect for table games applications and other casino uses. The future of interactive table gaming is called interactiveProTable, the solution which ofers 10-point multitouch experience suitable for a wide range of applications, excellent for television, video and interactive entertainment in bars, casino loors, restaurants and lounges. suzohapp will also show their
wall mounted version, the BoothTV, which can host of number of diferent applications and be used by more than one person at a time to utilize or interact with a system, including video and browser applications. There will be a strong array of cash handling technology on display in the suzohapp booth. The Cash Redemption Terminal (CRT) enables players to cash out their gaming tickets without having to line up at a service counter. Visitors looking for a
solution to safely and efectively clear and securely store banknotes in a high volume retail environment will be impressed with the CashComplete sDs-30 and the sDs35. These innovative smart Deposit systems represent a costefective method to secure notes and reduce shrinkage. The compact design enables them to be installed directly at the point of sale, such as at a live gaming table or bar or bottle shop cash register.
TRANSACT
EPIC EDGE AND EPICENTRAL The company display at Booth 470, in conjunction with its distribution partner suzo-Happ, will include a full lineup of epic® casino, gaming and lottery ticket printers, led by the new epic edge, as well as the latest versions of the epicentral promotion and bonusing system, including version 3.8 and epicentral system edition (“epicentral se”). Two distinct epicentral versions that enhance the capabilities of
this unique solution will be on display: epicentral v3.8, allows operators to run multiple simultaneous promotions, create games within games, ofer multi-user/ multi-site promotions, run diferent promotions on diferent slot game banks, segment players by tier and promote to diferent levels of uncarded players; and epicentral se, unique systems version allows operators to use the existing bonusing capabilities
of their slot management systems to ofer bonuses to players as a printed coupon by leveraging epicentral’s Print manager and Design Center modules. it also provides for an upgrade path to a full epicentral implementation should an operator seek to expand their promotion and bonusing options beyond the capabilities of their existing slot management system. The next-generation epic edge builds on the proven
performance of Transact’s industryleading epic 950 to deliver a host of technological advances. as the irst ticket-in/ ticket out (“TiTO”) printer to ofer 300 dpi print resolution,
for more attractive coupon designs that enhance epicentral implementations. in addition, the epic edge features an adjustable ticket bucket that allows operators to use
representing a 50% improvement over current printers, the epic edge produces razor sharp barcodes that improve bill validator acceptance and reduce attendant calls while allowing
smaller tickets to save money and reduce paper usage and, as a drop-in replacement for the epic 950, it provides for the side-by-side operation of both printers on a casino loor.
Games maGazine 25
> INTERVIEW
REJEAN BELLIVEAU GLOBAL DIRECTOR OF SALES AND MARKETING, NANOPTIX INC.
“OUR INNOVATIONS PROVIDE RELIABLE, PERFORMANCE DRIVEN TECHNOLOGY” As a successful peripherals provider woth strong distribution partners in Australia, the company will launch its new product, the Paycheck NextGen, described as a computer that prints. What’s the importance of australasian market to nanoptix? Which are your company’s expectations for aGe shoW?
australia has been and remains the most successful market for nanoptix. Over the last decade, we’ve had the privilege to work with market leaders such as aristocrat Technologies and ainsworth Game Technology, and continue to deliver them our Paycheck series TiTO printers. We still grow within the australian market as our innovations provide reliable, performance driven technology which in turn allows these manufacturers to bring their system ideas to market. We expect an amazing turnout at this year’s show as we will present our newest Paycheck series printer: the Paycheck nextGen. What main trends are you WitnessinG in the current GaminG landscape?
For nanoptix, the main trend we are seeing are the eforts from game and system manufacturers to bring more and more cross-marketing and revenue generating streams directly to the eGms for their players. Whether marketing, sports betting or additional lottery products, manufacturers are inding ways to increase revenue
26 Games maGazine
while allowing players to remain at their favorite eGms. in order to do so, manufacturers need peripherals that can provide either two-way communication or, at a minimum, allow multiple communication channels. This trend is the reason nanoptix has developed the Paycheck nextGen as more than just a printer. it operates through PC based infrastructure allowing communication through a built-in ethernet port, multiple UsB ports and can act as a Host as well as slave device. The Paycheck nextGen is truly part of this trend and provides a future proof platform which will sustain for the next decade. Generally speakinG, in Which aspects do operators need more learninG and upGradinG, and hoW is your company WorkinG to provide them information and help them improve their processes?
We believe that operators get most of their information from their eGm providers and we usually funnel some of the information pertaining to peripherals and the features which they could take advantage of by selecting our products to be included in their games. nanoptix continues to
work very closely with our distributors and service partners to ensure that operators have the necessary knowledge regarding peripherals and their performance. We always discuss our features and beneits and where they it within our customers’ plans and expectations. in Which Way is the company prepared to keep pace With the advancement of technoloGy in GaminG equipment?
We’ve always been able to keep up with today’s gaming trends, but, as technology continues to advance so quickly, we decided to take a diferent approach with our newest TiTO printer, the Paycheck nextGen. We’ve developed this printer as a new platform instead of bringing yet another printer to market. We did not launch a printer, but a computer that prints. On top of operational improvements, we’ve added several features which are standard in comparison to our competitors whom very few can even ofer these as well as ofer them as value added. The Paycheck nextGen is actually ahead of the curve and will allow us to build on it in order to answer operators’ needs and desires.
FIVOS POLYMNIOU VICE PRESIDENT INTERNATIONAL SALES, VIZEXPLORER
“OUR SOLUTIONS ARE REVOLUTIONARY FOR THE CONSTANT INTEGRATION OF NEW DATA SOURCES” The company has been serving leading gaming operators from Australia to Macau since 2013. It offers deep gaming expertise and an open, interoperable ecosystem, delivering technologies and solutions designed to help casino operators run their businesses more efficiently and profitably. in Which aspects do you consider operational intelliGence solutions have really chanGed the perspective for casinos’ data GatherinG policies?
most operators are familiar with the older business intelligence solutions. Ours is an operational intelligence solution which delivers more than just access to the data. We take the data, run complex analysis to provide insights about a company’s business, and we provide the tools to take action, make a decision, and change a process. Compared to what operators are used to, our solutions are revolutionary because we’re constantly integrating new data sources that enable new insights, which allow us to offer customers new capabilities to grow their casino operations.
more than 300 years of combined casino experience. From a technology perspective, we value an open, interoperable ecosystem and strive to deliver technologies and solutions designed to help casino operators run more eiciently and proitably. hoW is vizexplorer WorkinG to strenGthen its presence in the australasia market?
Vizexplorer opened an office in new zealand a decade ago, and we have been serving leading gaming operators from australia to macau since 2013. We have expanded our international momentum with key partnerships and hires, and, for the first time, have packaged a set of our core solutions specifically designed to meet the needs of international operators.
What elements and strateGies do you consider as cornerstones for your orGanization?
hoW Will vizexplorer continue pavinG the Way for operators to keep on increasinG their businesses?
as a company, we take a customercentric approach to product development with every member of our team focused on delivering new capabilities that ofer new ways to solve problems. We pride ourselves on our deep gaming expertise; we have
We are especially focused on entering new international markets and in developing strategic partnerships with other industry vendors who seek to deliver joint solutions that solve business challenges facing the modern casino operator.
Games maGazine 27
> OUTLOOK
ISSUES THAT NEED TO BE SOLVED
Australia
Facing gaming problems Each year, millions of Australians enjoy different entertainment experiences from the wide domestic gambling offering. However, to date, authorities have been unable to adequately balance policies on the sector. The excess of pokies, the lack of a clear online regulation, more favorable to stimulate the growth of that segment, as well as the need to attract new types of players and global tourists for future mega-resorts are some of the topics developed in this article. 28
GAmES mAGAzInE
Australia’s booming economy is conducive to gambling. It is the ifth wealthiest country in the world. The minimum wage is US$600 per week, and unemployment is less than 5%. Between 80 and 90% of the adult population engages in some form of gambling, and most have the funds to do so. Adding even more to the popularity of gambling in Australia is the fact that Australians do not have to pay tax on winnings. Gambling is considered a recreational activity and wagers are therefore not subject to tax. All of these factors together contribute to Australia having the highest national gambling participation in the world. The dark side to these statistics is the staggering amount of money being bet and lost. Australia has the highest gambling losses per capita worldwide, dwaring casino hub Singapore. An analysis by The Economist revealed that Australians lost more per person than any other nation in 2016: a massive US$1,292, averaged out across the population, not just gamblers (US$11.6 billion in total). One of the main reasons for this is the abundance of poker machines (‘pokies’). Australia has approximately
2.5% of the world’s gaming machines. In all the country, there are 197,122 gaming machines (end of 2016). Losses from the gaming machines found in pubs and clubs across the nation were bigger than the total per capita gambling losses of nearly every other country, largely because of Australia’s permissive bet limit rules, which allow punters to lose up to US$1,498 an hour. However, Australia and new zealand have the slowest machines in the world; they are designed and regulated to limit play speed. Of course, poker machines are only a single part of an entertainment experience enjoyed by millions of Australians in pubs, clubs and other venues. In that sense, here are some keys to analyse the current general gambling situation in Australia.
STATE OF GAMBLING One of the main big issues of the Australian’s gambling scenario is the abundance of pokies and its real incidence on the problems and excess of players’ betting behaviour. nSW has half of Australia’s gaming machines and 10% of the total worldwide, at around 95,000. A total of $80 billion was played across nSW in 2015-16. That’s around 55% of the national total gambled on poker machines, which was $135.7 billion in 2014-15. In Western Australia, pokies are restricted to casinos only, and the Victorian Government froze the number of pokies in the state until 2042 as part of a suite of reforms. The ‘pokies addiction’ is seriously extending and has generated alarm and worry in the Government. That’s why in 2017/18, the Government will spend almost US$18 million from the Responsible Gambling Fund on preventing and reducing problem gambling through initiatives such as community
awareness campaigns and face-to-face and online counselling. A possible replacement for pokies, with a new and more entertaining playing tool, are the skill-based casino games. US developer GameCo will attend Australasian Gaming Expo to explore Australian market and display its surprising products, already installed in the US, and with plans to be included in European and macau casinos. The company’s games, Danger zone and Pharaoh’s Secret Temple, combine skill-based play and casino games to offer a new interactive playing experience. Casino operators in Australia have expressed an interest in adopting these new games, known as video gaming machines (VGms) and are being touted as a way of attracting a younger, millennial customer to land-based casinos. The Government of Victoria is looking into various studies to see if the new skill-based games meet the regulatory standards and requirements. Speaking about casinos, Australia has 15 casinos, many of them very large, but the size of that sector is dwarfed by the clubs, of which there are 6,413 (2015 figures). Between 2010 and 2015, casino revenues grew by just over 3% per capita and in total by 5%, driven by the upsurge in VIP revenues. However, the trend across the country has been a decline in gaming machine revenue per capita of 0.7%, probably driven by operators adjusting payouts upwards to increase the return to the player. According to Queensland Treasury figures, the Australian gambling pie for companies is split as follows: poker machines (52%), casinos (20%), betting on racing (13%), lotteries (10%), sports betting (2%), keno (2%) and other forms of betting (1%). In fact, the share of poker machines had fallen by 2015 GAmES mAGAzInE 29
> OUTLOOK
from 56% to 52%. Besides great integrated resorts and casinos, for Australian gambling economy, the club business is very important.
MERGER IN DANGER Another relevant issue for the industry is the highly debated mega-merger between gambling giants Tabcorp and Tatts Group. On June, the Australian Competition Tribunal (ACT) approved the proposed merger between Tabcorp Holdings and Tatts (company that has recently extended for 10 years its licence to conduct authorised public lotteries in Victoria, such as Tattslotto, Powerball and Oz Lotto) that would imply a new business of A$11.3 billion (US$8.7 billion). The tribunal noted it is “satisied that the proposed merger is likely to result in substantial public beneits”. According to a iling from Tabcorp to the Australian Stock Exchange at the time, the merger was expected to result in at least A$50 million per year of additional funding to the Australian racing industry and A$130 million of annual EBITDA synergies and business improvements, net of beneits to the racing industry in the irst full year of integration. However, this project has faced lots of objections from its beginning, which intensiied after the ACT’s decision. On July, another tribunal, the Australian Competition and Consumer Commission (ACCC), argued that the negative impact on competition outweighed the public beneit of the merger, so applied to the Federal Court for judicial review of the ACT’s authorization. ACCC’s representatives marked three errors from ACT: 1) it worked on the
30
GAmES mAGAzInE
assumption that the lessening of competition had to be ‘substantial’ to be ‘detrimental’; 2) it failed to compare the future state of competition with and without the merger; 3) was too willing to accept Tabcorp’s insistence that millions in cost savings generated by the merger would be used for the beneit of the consumer. After that, another companies (Tabcorp and Tatts competitors), such as CrownBet, SportsBet, Racing Victoria and Racing. com, also iled application for judicial review. One of the main concerns centres on Tabcorp’s racing broadcast business, Sky Racing, which some fear could inlate the merged company’s market power in dealings with pubs and clubs. The companies also argued that the merger will virtually end any prospect of a competitive bidding
GAmES mAGAzInE 31
> OUTLOOK
process for the next wagering licence from 2025 onwards. Tabcorp opposed to those appeals, which have been concurrently listed for a two day hearing before a Full Court on August 28th 2017. As a consequence of that, the inal merger decision deadline of the ACT was delayed up to September 10th.
ONLINE CONTROL AND REGULATION During 2016 and 2017, a number of measures and reforms have been made to the online gambling regulations in Australia. Originally, the 2001 Interactive Gambling Act had already sought to outlaw online gambling (including poker, blackjack and roulette). In 2016, The Interactive Gambling Amendment Bill came about after the Review of Illegal Ofshore Wagering in 2015, which recommended tightening up federal laws around gambling online. Illegal iGaming is considered a serious problem in Australia. Human Services minister, Alan Tudge, chaired a meeting on problem gambling. He explained: “The rate of problem gambling online is three times higher than elsewhere, and online wagering is growing by 15% annually. In the future more problems will come from online punting unless we have better protections in place”. To have more control on this issue, an agreement has been reached among federal, state, and territory ministers in Australia. Under a number of sweeping new reforms, online gambling sites operating in Australia will be banned from ofering lines of credit, and operators will no longer be allowed to advertise payday lenders. Furthermore, bookmakers will be required to provide regular activity statements to the government, detailing an individual’s wins and losses. In march 2017, Australia’s federal parliament just closed loopholes to ban online poker under changes to gambling laws passed by the Senate. The law also banned live sports betting, or betting on in-play events once a sporting ixture has begun. Such betting has been cited as a possible factor in match or sport-ixing. By September 2017, the ministers are expected to see a national self-exclusion registry established and operational, allowing players to ban themselves from gambling sites for periods ranging from three month to a lifetime. In may 2017, the Australian government announced that it will introduce changes to ban gambling advertisements during live sports programs before 8.30 pm. These changes will apply on commercial television, commercial radio, subscription television, SBS and online platforms. Advertisements for racing and lotteries will continue to be exempt from these restrictions. These changes are expected to commence in march 2018. All of the new reforms mark another important efort by the Australian government to curb problem gambling. 32
GAmES mAGAzInE
However, it is still looking for ways to block Internet service providers and payment processors in a bid to combat illegal ofshore betting. Current numbers say that Australians wager US$1.4 billion online every year (Commonwealth of Australia, 2016) and account for 5% of the global online gambling market (Gainsbury, 2014).
REDUCING THE SOCIAL COST As it was mentioned before, Australians spend more on gambling than any other population in the world, averaging US$1,292 per person. An estimated 80% of the population gamble regularly. About 60% of Australians admit they gamble on a weekly basis. A Galaxy Research survey revealed that buying lottery tickets is the most prevalent form of gambling (52%), followed by pokies (20%), horse racing (19%), online betting on sporting matches (18%) and gambling at the casino (14%). Of course, more than one possibility was eligible for respondents. While most countries restrict gambling to casinos and betting shops, Australia permits it in hotels, sports clubs and RSLs. Accounting for less than 0.5% of the world’s population, the nation is home to a ifth of the world’s slot machines. However, though Aussies gamble at a high rate, generating a gambling market worth about US$18 billion a year and providing 11% of the government’s revenues, there isn’t a lot of space for growing the market. The high level of existing gambling penetration and relatively small population of 24 million make it a relatively mature market. That concept means proit margins for gambling companies will not rise if they retain a strict dependency on the Australian market. On recent times, the motto for gambling authorities and some operators seems to be: “online betting for Australians, new integrated resorts for tourists”. Locals prefer to wager in pubs and
bars over large casinos and integrated resorts. According to a Roy morgan Research report, only 12% of the Gold Coast population gambles at their local casino, while Crown Perth attracts just 9% of locals. new mega-resort projects, such as Crown Sydney or Queen’s Wharf for Star, are targeted to international tourists. Regarding the online area, it’s the fastest growing gambling segment in Australia. Digital technologies are rapidly changing the scenario. But Australians are losing between US$64 million and US$400 million every year betting in illegal ofshore sites, and this means tax revenue is also lost. Currently, the legislation adopted by Government isn’t developing the online sector to respond to new technologies and playing tools (mobile, VR, social gambling), or for the beneit of regulated online operators and their customers. At the end, the online policy has become an exploration of possible harm minimization measures for problem gamblers that seem out of step with the worldwide trend. Australia’s regulatory regime relating to online gambling remains inconsistent with the regulatory regimes in countries like the United Kingdom, Italy, Spain, Ireland and Denmark. The main results so far has been some online gambling companies exiting Australian market, such as Vera & John, 888poker, GIG Ailiates, 32Red and, possibly in a near future, PokerStars. There’s also the social costs associated with problem gambling. One big area of concern is the prominence of online gambling among younger Australians. In the online world, the proportion of problem gambling is three times higher than in other forms of gambling. Australia is still seeking ways to prevent ofshore Internet service providers and payment processors from accessing its citizens. Recent Government studies concluded that about one in six Australians who play regularly has a serious addiction and loses on average about US$21,000 a year, one-third of the average Australian salary. The social cost of gambling to the community is estimated to be at least US$4.7 billion a year. Regarding pokies, the highest percentage of its players is in the age 18-24 bracket. The 75% of problem gamblers cite pokies as a problem. The percentage jumps to 90% for women. It will be essential for the future of Australian gambling market to advance in a policy of promotion for responsible gaming, with new programs to help people with gambling addiction. This will be one of the major social debts to be settled by the gambling authorities in Australia. The other is a true and serious online regulation that favors and stimulates the business of legal companies; an up to date regulation to keep abreast of the technology that players use to enjoy diferent iGaming options.
GAmES mAGAzInE 33
> OPERATORS BUSINESS REORIENTATION
LOCAL FIRST
The Chinese incident with Crown Resorts executives has forced gaming operators to make a rapid turn in their operational direction, in order to re-impulse the domestic market and convoke players from the mass market and tourists. The goal is to replace the drop in VIP revenues with other long-term sustainable options. The contribution to Crown Resorts and The Star Entertainment Group (both the main gambling casino operators in Australia) from overseas high-stakes gamblers came into focus in October 2016 when Chinese authorities arrested a group of Crown workers. A Shanghai court in June 2017 convicted 19 Crown current and former staf of illegally promoting gambling on the mainland and handed out jail terms of as long as 10 months. From the 16 people who were detained, 10 employees were released on July. Since that crackdown, Crown has closed almost all its regional marketing oices in Asia that funneled big-stakes players to Australia and sold out of a Macau casino venture. Crown’s share of international high-roller revenue in Australia has plummeted from more than 70% in 2010 34 GAMES MAGAzINE
to 39%. Of course, this situation has also impacted in The Star. This company closed its doors to new business from China in the wake of the detentions. The falling on VIP revenues makes local market and international tourists prime targets for both operators.
MAIN NUMBERS AND STRATEGIES On last February, both operators announced their 2017 Half Year Results (ended December 31st 2016). Crown’s Australian operations’ (Crown Melbourne, Crown Perth, Crown Aspinalls and Crown Sydney) irst half result relected diicult trading conditions. Total revenue for Crown’s Australian resorts declined 12.5%. The year on year decrease was due primarily to the reduction in VIP program play
revenue in Australia, which was down 45.3% during this period. Main loor gaming revenue also decreased by 0.8%, with modest revenue growth in Melbourne ofset by softness in Perth. The result also includes a net gain from the sale of approximately 40.9 million ordinary shares in Melco Crown Entertainment (now Melco Resorts) for $166.9 million. Normalised EBITDA was $402.6 million, down 5.1%. EBITDA from Crown’s wagering and online social gaming operations was a loss of $3.0 million. Crown’s wagering and online social gaming operations include CrownBet (a 62% owned, online wagering business), Betfair Australasia (a 100% owned, online betting exchange) and DGN Games (a 70% owned, online social gaming business based in Austin, Texas). On August 4th,
James Packer (Crown Resorts)
the company shared the Full Year Results. Foir the period ended on June 30th 2017. It posted a lower than expected proit after tax for a year hit by a huge drop in VIP gaming revenues. Crowns total revenue fell 9.9%, impacted by the lower returns from its VIP program. The net proit was $308.9 million, down 21.5%. Turnover from larger clients was down 48.9%% to $33.3 billion. The normalised EBITDA reached $833.7 million, down 10.7%. Crown digital, CWN’s online gaming arm, saw a lift in wagering and social gaming revenues of 26% to $303 million. Earnings increased to $14.8 million, boosted by strong pick up in Betfair Australasia. Regarding The Star Entertainment Group (“Star”), the corporation owns and operates The Star Sydney, The Star Gold Coast and Treasury Brisbane. It has also acquired the Sheraton Grand Mirage on the Gold Coast in a joint venture and manages the Gold Coast Convention and Exhibition Centre on behalf of the Queensland Government. Star said its VIP revenue was down 11.9% in revenue reaching $20.8 billion in the six months to December 2016 compared to the previous year and down 27% in November and December alone. Nearly 80 percent of Star’s VIP revenues came from Macau, Hong Kong, and mainland China visitors. On the other hand, latest results show the net proit after tax for the company
to be A$141.8 million (US$109.4 million) for the six months ending December 31st 2016, a growth of 135.2% year-on- year, thanks to a near doubling of its win rate. ‘Normalised’ H1 proit down 17.7% to A$107 million. Revenue was reported to be A$1.23 billion, up by 11.1% over same period last year. Star Entertainment’s performance after excluding VIP business has been encouraging in the new year as well. Its gross revenue, without its VIP business, saw an increase of 11.4% in the period between January 1st and February 12th. In this case, the Full Year Results will be communicated on August 23rd.
NEW RESORTS PROJECTS In order to achieve its goal of increasing the number of local players and the attraction to general tourists with non-gaming activities and services, Australian operators are constructing new luxury facilities. The idea is also to top wealthy players, not from China, but from Australia and Southeast Asia. John Alexander, new Executive Chairman of Crown, is focusing on the company’s hotels and casinos in Australia, including a new A$2 billion (US$1.5 billion) luxury resort on Sydney’s waterfront. That new resort is focusing on high rollers, even after turnover from so-called VIPs slumped since the crackdown. Crown Sydney will be a six-star hotel and casino fully installed by 2021 on the banks of a protected inlet west of the Sydney Harbour Bridge. The casino will
operate with VIP membership restrictions. With 75 loors and a height of 271.3 meters (890 ft), it will become the city’s tallest building. The resort will contain 350 hotel rooms and suites, three bars, ive restaurants and an ininity pool on the roof. The casino won’t run slot machines, making classic table games the key battle ground in the ight for customers. This Sydney facility will draw business away from the company’s lagship casino in Melbourne, because it’s easier for overseas gamblers to ly into the city. Regarding Star, in a joint venture with its Chinese partners Chow Tai Fook Enterprises and Far East Consortium, they have reached contractual close with the Queensland Government on a A$3 billion (US$3.25 billion) redevelopment of Queen’s Wharf in Brisbane. This project is expected to open in 2022. Star is also upgrading and expanding its casino and hotel on the state’s Gold Coast. A new luxury hotel at the front of the property will open before the Gold Coast 2018 Commonwealth Games, and approvals have been received for an additional 200-metre hotel and apartment tower. Star’s developments are scheduled to be fully completed by about 2022, after which the proportion of its revenue from tourists could climb to at least 10% from less than 3% now. The company stated that, on the last year, international high rollers generate less than 30% of Star’s revenue and 16% of EBITDA.
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> OPERATORS
Besides these new developments, there are other projects, not only in Australia, but also in some close Asian countries. A long-planned, multi-million-dollar expansion of Adelaide Casino will go ahead, after Skycity Entertainment Group conirmed it has committed US$330 million to the project more than 18 months after it received planning approval. The number of hotel rooms will grow from 89 to 123, adding another loor to the plans in the process. The design for the expansion also includes new restaurants and bars (with a rooftop bar), and function spaces for up to 750 people. There will also be an expansion of the existing Adelaide Casino building. The redeveloped casino and hotel complex is expected to be completed by 2020. Australia also faces competition as resorts springing up across Asia try to attract business from China. In Japan, companies are vying for a slice of a potential US$25 billion market after lawmakers legalized casinos last December. The Philippines and Vietnam now allow phone betting that’s banned in Macau, and provide favorable tax
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structures and policies for gaming. In Hong Kong, Imperial Paciic International Holdings Ltd. is the company behind the ambitious Saipan Island US$7 billion project. The complex is set to be developed in two phases: the irst one, including a magniicent casino, will be ready by February 2018, and the second one is likely to be completed by 2030. In Macau, major casino operator MGM Resorts International is set to expand its presence with a brand new integrated resort, MGM Cotai, opening in the second half of 2017. South Korea has also become among the Asian countries to embrace the integrated resorts model in a bid to attract big spending customers and boost tourism and overall economic statistics. Paradise City, the country’s irst integrated casino complex, was launched in April 2017. Jeju Shinhwa World (owned by Landing International Development) will be South Korea’s second integrated resort. This US$2 billion project will be launched in two phases: the irst one in October 2017, and the whole resort in 2020. Moreover, U.S. regional tribal
Matt Bekier (The Star Entertainment Group)
casino operator Mohegan Gaming and Entertainment anticipated its plans to start construction of its new casino resort in Incheon, near South Korea’s capital Seoul, before the end of 2017. The irst phase of the scheme has an estimated budget of US$1.6 billion, with a total commitment of US$5 billion for multiple phases over a period of 20 years. Finally, in Bavet, situated in the border gate between Cambodia and Vietnam, the Empire World City (total investment of US$ 200 million by the developer Virtue Resources Corp) will be a 50-hectare resort containing land-based and online casino facilities.
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> OPERATORS
EXPERTS OPINIONS With at least ifteen Integrated Resort Developments likely to open during the next ive years in the Asia-Paciic region, the industry is going stronger and with lots of possibilities to invest. For Matt Bekier, Managing Director and CEO of Star, tourists and repeat business from locals are a more reliable market than international high-stakes gamblers. He insisted that the impact on the VIP business won’t hurt the company in the long-term. “That (large VIPs) is not the future of this business. Our proposition has really evolved into the customer who is into the tourism experience. We can put experiences to these customers that they can’t have anywhere else. That’s the logic of our customers. Gaming is not the prime focus of what they’re doing, but it’s the most sustainable business proposition for us. We’re looking to diversify and we’ll be looking to enter new markets with our ofer”. Bekier also added: “The premium mass business looks like a highend travel agency service. We are helping aluent people that want to make a trip to Australia and visit one of our properties. That business was non-existent for us two years ago and now accounts for about 8-10% of the VIP business. I would like that to be three times as big”. Star is pushing ahead with a plan to generate more income from Southeast Asia to reduce reliance on China. The most lucrative markets are Singapore, Malaysia, Indonesia and Thailand. In terms of its building projects in Adelaide, Skycity chief 38 GAMES MAGAzINE
executive, Graeme Stephens, said the updated expansion plans would be a success for the company and for Adelaide. “We believe there is demand for more quality hotel rooms in Adelaide from both domestic and international visitors. This provides a better-balanced product while also helping South Australia realise its full potential as a premium tourist destination”, stated. Crown is also investing heavily for the future as the casino and luxury tourism industry is competitive, where big-spending customers expect the best and latest properties. Crown’s ‘six-star’ Crown Sydney resort on Sydney Harbour is due for completion by 2021, with other heavy investments being made in existing or new Melbourne, Perth, and overseas properties. The gaming billionaire
James Packer, who is now again on the board of his casino empire Crown Resorts, explained some of the priorities for his company: “We are drilling down, back to our core domestic market. We want to run the Australian business in a more lean and focused fashion. We also have to continue to drive and build a meaningful, proitable, online business. Another goal is to deliver the company’s new Sydney casino in Barangaroo on time and on budget”. Gambling operators in Australia understand that the business landscape has changed. They are waiting to succeed with their new resort projects in order to recover and beat the competition. Time will tell how these strategies are being developed and who wins the battle for new customers.
gaming UK
FANDUEL WITHDRAWS FROM THE MARKET Daily Fantasy Sports (DFS) operator FanDuel has closed its operations in the UK market, almost exactly one year after its launching. The company informed players of its decision via email and also confirmed its exit via a posting on its official Twitter account. Just before the start of the soccer English Premier League season, FanDuel said that it hoped to return to the UK “in the future”, but did not officially disclose the reasons behind the move. Players who have funds left in their account will have their balance credited to their most recent bank card and will also receive an email confirming payment. The company, which is planning to focus on the core US market, added: “Almost £1m was won by fantasy football enthusiasts in the UK. Thank you for your support. Unfortunately, we will not be offering contests this season. We hope to be back in the future”. Rival DFS brand DraftKings, which last month scrapped a merger with FanDuel, remains active in the UK, along with Yahoo DFS and PlayON.
AUSTRALIA
BET365 PROFITABLE FOR THE FIRST TIME Global bookmaker Bet365 has made a profit in Australia for the first time, after accumulating $128 million in losses over five years. Accounts for its Australian operations lodged with the corporate regulator show Bet365 made a $1.2 million profit in the year to March 31st, five years after the British giant moved into the competitive but lucrative Australian market. More than $2.5 billion was wagered with the firm by Australian punters in its 2017 financial year, from which Bet365 received revenue of $101.4 million. The firm’s profit compared with a loss of $10.9 million in 2016 and $31 million the previous year. The online-only bookmaker has market share of at least 17% in an online wagering sector now worth more than $20 billion annually. Bet365’s positive result was possible despite several Australian Government announced measures that will hit profits hard, including a mooted ban on television advertising during live sport, a point of consumption tax in South Australia and an end to credit betting.
US
PROPOSAL TO ATTRACT GLOBAL ONLINE BETS TO NEW JERSEY State Sen. Raymond Lesniak, with 30 years of service to the New Jersey Senate in the US, and main sponsor of the bill that, in 2013, legalized and regulated online gambling in that State, wants to let other countries and States get in on New Jersey’s growing Internet gambling market. His bill would let people in other jurisdictions where online gambling is already legal make online bets in New Jersey. State law currently restricts Internet gambling to persons physically in New Jersey. “I’ve changed my mission from making New Jersey the Silicon Valley of Internet gaming to the Mecca of Internet gaming. Online gaming has helped Atlantic City to revive its casino sector with a success that we can expand in ways that will generate more revenue, create jobs and fuel technological innovation in gaming”, explained Lesniak. New Jersey began offering Internet gambling in November 2013. Since then, online bets have steadily grown and have become a crucial part of Atlantic City casinos’ business models, with nearly US$600 million won from gamblers playing online. Last year, the casinos took in US$196.7 million from Internet gambling, up more than 32% from 2015. Recently, New Jersey’s online casinos continued their winning streak by taking in US$20.2 million in June, up 23.4% year-over-year.
BRAZIL
PROJECT TO CONTROL ONLINE GAMBLING Ciro Nogueira, a Brazilian PP-PI senator, has a project, inspired by the US Unlawful Internet Gambling Act, which prohibits transactions with credit or debit cards and also in electronic money for gambling on sites hosted outside the country. That plan, currently on the Committee on Economic Affairs, proposes that it will be up to the Central Bank to establish the control rules prohibiting companies from authorizing payments for this purpose, as well as any transfer of values between bettors and suppliers. According to Nogueira, about US$945 million per year are being spent by Brazilians in online gaming. “There is a legislative grey in our territory that doesn’t prevent bettors from spending resources on Internet gaming from companies based in other countries, such as Costa Rica, Gibraltar, Curacao and Isle of Man”, stated the senator. GAMES MAGAZINE 39
gaming JOHN PETTIT, MANAGING DIRECTOR FOR UK, IRELAND, AUSTRALIA & ASIA, PLAYTECH BGT
“WITH OUR BETTRACKER PRODUCT WE ENHANCED THE USER EXPERIENCE” The executive considers there are lots of opportunities for his company in markets such as Australia, New Zealand, Hong Kong, Singapore, Vietnam and Cambodia. He underlines the increasing value of virtual and augmented reality, and thinks Australian operators should embrace new machine technologies.
HOW IS YOUR COMPANY DEPLOYING ITS SOLUTIONS IN AUSTRALIA, TAKING INTO ACCOUNT THE LAWS THAT LIMIT THE DEVELOPMENT OF ONLINE GAMING IN THE TERRITORY? At the moment, we’re in active discussions with a number of businesses in Australia and very hopeful that we will be able to provide a solution for their needs shortly. With in-play betting banned online, there is a significant opportunity to provide our proven in-play product offering within retail premises and provide retail operators a significant competitive advantage. But the omni-channel nature of our self-service terminals also has its advantages with the modern consumer. There is also content from all around the world which gives operators an opportunity to generate incremental revenues in comparison to their existing solutions. 40
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IN WHICH MARKET SEGMENTS IS YOUR COMPANY LOOKING FOR NEW OPPORTUNITIES TO GROW YOUR PRESENCE IN AUSTRALIA, NEW ZEALAND AND SOUTHEAST ASIA? We’re active in all countries in the region in which sports betting is legal. There are great opportunities for Playtech BGT Sports, not only in Australia and New Zealand, but also in places like Hong Kong and Singapore too. We are also aware of potential sports betting deregulation in countries such as Vietnam and Cambodia, and therefore hopeful of making progress there in the coming years. Our self-service terminals have an incredible range of markets and products which would benefit any operator looking to attract new customers and revenues to their retail estates. FROM YOUR EXPERIENCE IN MARKETS LIKE THE UK, WHAT SUGGESTIONS COULD YOU MAKE TO IMPROVE THE IGAMING SITUATION IN AUSTRALIA? The iGaming market in Australia is a vibrant one, but for my money, it is yet to
make the most of opportunities to link up its solutions and technologies with the retail sector. Worldwide, retail was historically seen as bit of an old man’s option which was declining in popularity. However, in the UK, we have seen a younger audience emerging as operators have embraced new machinebased technologies and customers have grown to appreciate non-traditional products. The digital interfaces they are using in-shop in the UK are now no different to the interfaces they are using to place their bets online or on their mobiles. Unlike the over the counter solution in-shop, the SSBTs have similar range of markets and betting opportunities as online. If Australian operators embraced new machine technologies, they would have a better chance of attracting the customers they have online, and have a more joined-up solution as a result. WHAT ARE THE TRENDS THAT INTEREST YOU THE MOST IN TODAY’S DYNAMIC ONLINE GAMBLING WORLD? I think we’re just scrat-
ching the surface when it comes to e-sports and will see a lot more of that in the coming year. We will also no doubt witness virtual and augmented reality become a part of the industry, as they are in other industries. But in the first instance, I think there’s more we can do to enhance the user experience, and give them access to the same dynamic, fresh content, whether they’re using their own device or a machine in a shop. We’ve pioneered this in recent times with our BetTracker product, which allows customers to place their bets ahead of an event, but then follow it in-play and cash out if they chose. It is a product that adapts to people’s busy lives and gives them flexibility. WHAT OBJECTIVES DO YOU EXPECT TO ACHIEVE BY THE END OF THIS YEAR? We’d like to have an open door with all of the major licensed operators in the region by the end of the year and are confident that we will start working with operators early in 2018.
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