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February 7 – February 13, 2014 • No. 2354 • www.coinslot.co.uk

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COINSLOT

Industry news Seaside amusements Leisure news B2B Listings Latest machine charts For sale, wanted + opps Jabro Surreal Soccer Comment and opinion

COMMENT

4 10 11 12 16 18 21 22

"Companies that claimed a VAT rebate will be asked to repay the money received..." 22

Commission releases data on pub REPORT

The Gambling Commission has also released its annual figures on how the public perceives gambling. The following findings are based on questions commissioned by the Commission in surveys conducted by ICM Research. These questions measure how far people in the UK think firstly that gambling is fair and can be trusted and secondly that gambling is associated with criminal activity. For the year 2013 (an average of figures from the four quarterly surveys conducted last year), 42.3 per cent of the 4,000 adults surveyed agreed that gambling in this country is conducted fairly and can be trusted. This compares with 48.5 per cent in 2012, 49.3 per cent in 2011, 48.4 per cent in 2010, 49.6 per cent in 2009, and 48.8 per cent in 2008. Over the same period, 39.8 per cent of the 4,000 adults surveyed agreed with the statement that gambling in this country is associated with criminal activity. This compares with 39.6 per cent in, 36.5 per cent in 2011, 36.9 per cent in

2010, 41.3 per cent in 2009 and 42.0 per cent in 2008. Participation in gambling is associated with a more positive perception of gambling, with past-year gamblers more likely than past-year non-gamblers to agree that gambling is conducted fairly and can be trusted (51.0 per cent compared with 30.0 per cent respectively) and less likely to associate gambling with criminal activity (37.8 per cent and 42.5 per cent

Sporting luminaries launch n LICENSING

ngland legends Michael Owen E5050Sports and Michael Vaughan launched licensed content on Astra Games terminals at ICE 2014. 5050Sports brought two of England’s biggest sports stars to ICE Totally Gaming 2014 as it launched its partnership with Astra Games, a subsidiary of the Novomatic Group. Former Liverpool, Real Madrid and Man Utd striker Michael Owen and Ashes-winning captain Michael Vaughan promoted the collaboration between Real Sports Global,owners of 5050Sports,and Astra Games at Stand S3-246 between on February 5. The agreement sees Astra Games utilise 5050Sports as a bonus double-up feature in the exciting new land-based slot Mega Grandstand for the UK market.

Owen and Vaughan front, and are immersed in, the football and cricket versions of 5050Sports, which also has a boxing variation starring Ricky‘The Hitman’Hatton and a darts theme with Simon‘The Wizard’Whitlock. Players enter the feature when winning £10 or higher on Mega Grandstand.The 5050Sports game is presented by popular broadcaster Jim Rosenthal alongside one of the four personalities from the virtual studio as they interact with players who wager on the outcome of the upcoming, officially licensed, archive sports video footage. Mega Grandstand featuring 5050Sports includes classic footage from the FA Cup and England football matches, PDC darts, international cricket fixtures and

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INDUSTRY

LEISURE

EAG optimism confirmed by stats

Pubs push for beer duty freeze

22 February 7 - February 13, 2014 • No. 2354 • www.coinslot.co.uk

a on public perceptions of gambling

Commission reveals yearly gambling trends RESEARCH

In the UK, men are still more likely to gamble than women according to the latest annual Gambling Commission survey, with overall participation levels slightly down. he Gambling Commission has issued its yearly analysis of levels and types of gambling in the UK, based on a set of questions selected by the Gambling Commission in omnibus surveys conducted by ICM Research. The data published in the report is from the four quarterly surveys conducted in 2013.The questions asked respondents about their gambling participation in the past four weeks. An average of 55 per cent of respondents had participated in at least one form of gambling in the previous four weeks. This compares to 57 per cent in 2012. A larger proportion of male than female respondents had participated in gambling in the previous four weeks (60 per cent of males and 50 per cent of females). Meanwhile, an average of 15 per cent of respondents had participated in at least one form of online gambling in the previous four weeks. This compares to 14 per cent in 2012. If those respondents only playing the National Lottery online are excluded, however, the proportion of respondents who had participated in online gambling is just 9 per cent, compared to 8 per cent in 2012. A larger proportion of male than female respondents had participated in online gambling in the previous four weeks (19 per cent of males and 11 per cent of females). In terms of participation in each different type of gambling, the most popular gambling activity was buying National Lottery tickets (43 per cent of respon-

respectively). Questions monitoring public perceptions of gambling were initially piloted in surveys from June 2006. These questions were subsequently revised to provide more detail (by distinguishing between gamblers and non-gamblers, and identifying which crimes respondents associated with gambling), to improve respondent understanding and to increase the accuracy of responses. The questions have

remained substantially the same since March 2008. Each survey is conducted once a quarter with a nationally representative sample (in terms of age, gender, social classification and region) of 1,000 over-18s. The data will be published annually, based on an updated sample of 4,000 interviews. The next publication will thus include average figures for the four quarters up to the end of 2014.

aunch new gaming content world championship boxing. “We have very high expectations for Mega Grandstand featuring 5050Sports,”said Zane Mersich, Astra Games managing director. “The 5050Sports element is so simple to play and,featuring memorable highlights and some of the biggest names from the world of sport within the product, it is a totally unique proposition for players.” Stuart Carr, CEO of Real Sports Global and founder of 5050Sports, stated:“As part of the Novomatic Group of Companies, this is a major agreement with huge potential for 5050Sports.This agreement gives players more chances to engage with the game and I am

sure they will enjoy playing it as much as I do.” Michael Owen added:“I have thoroughly enjoyed being involved in 5050Sports.” 5050Sports is proving to be successful online since the standalone version of the game launched with BetVictor at the end of 2013.Real Sports Global also has additional,exclusive archive video rights from a range of sports federations, including Premier League snooker,top-level golf,poker,greyhound racing and motorsport among others, for use in 5050Sports.

dents).This was followed by other lotteries (13 per cent) and scratch cards (10 per cent). No other individual activity, though, was participated in by more than 4 per cent of respondents. Overall, 73 per cent of past four week gamblers had gambled ‘in person only’.A further 16 per cent had done so both ‘online’ and ‘in person’, and 11 per cent had gambled ‘online only’. For participation in all individual activities, respondents were more likely to report that they gambled ‘online only’ than they were to report they did the activity both online and in person,with the exception of virtual dog and horse races. Among past four week bettors, betting in person at a bookmakers was the most

common option for all types of betting activity. As far as gambling involvement is concerned, the most common frequency of participation for past four week gamblers was ‘once a month, less than once a week’ with this being the most common frequency for 12 activities, although for a significant number of activities respondents indicated that their participation was ‘once a week’. Overall, then, the National Lottery remains the UK’s most popular form of gambling by quite some distance, despite the media’s obsession with B2 machines, while participation in online (non-National Lottery) gambling still only accounts for nine per cent of gambling activity.

2354-p04-05-industry_Coinslot NEW 04/02/2014 13:43 Page 1

Coinslot February 7 - February 13, 2014

Industry

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Rank Group announces half-year results OPERATORS

Gaming and bingo operator Rank Group has announced its half-year results for the six months ended 31 December 2013. ank has announced its half-year results, with some dramatic operating profit falls, but the operator has put cost reduction and revenue enhancement actions in place to improve results. Performance during the six months to 31 December 2013 was characterised by a 26 per cent like-for-like fall in operating profit at its Grosvenor Casinos venues and a 38 per cent fall in operating profit in Mecca, in line with management’s expectations and the group’s Q1 Interim Management Statement. Adjusted profit before tax was down 23 per cent to £27.7m (H1 2012/13: £36.1m) due to trading performance, higher costs and interest charges arising on the

acquisition finance But it is in the reduction of costs and ‘revenue enhancement’ that the company is placing its hopes; actions, they confirmed, are in place to improve results in

the second half. Rank has successfully completed the integration of the 19 casinos acquired from Gala in May 2013 and invested £11.9m in new product and casino refur-

bishments. Rank said in a statement: “The acquired portfolio is trading well.” Interim dividend was up 8 per cent to 1.35p reflecting the Board's confidence in the group's outlook. Ian Burke, chief executive of The Rank Group, said:“As previously guided, the first half of the current financial year was challenging with like-for-like brand performances down on the same period last year.Our London Park Tower casino has underperformed against a strong comparative period; this casino’s performance has been the principal cause of a 2.9 percentage point fall in London win margin and a 6 per cent fall in London

handle in the period. The very challenging bingo market has contributed to a decline in the Mecca brand’s performance as customer visits fell by 8 per cent in the period.” He added:“The integration of the 19 acquired casinos has been successfully completed and we are pleased with their performance to date.We are continuing to implement actions outlined in our Q1 IMS to drive both revenue and operating profit that will bring benefits in the second half and future years. Management anticipates operating profit in the second half, excluding the impact of the acquired casinos, will be broadly in line with the comparable period last year.”

Playnation strikes two new business wins OPERATORS

eading family entertainment operator Playnation has Lsecured two new contract wins with bowling alleys. The firm will operate the arcade areas of the bowling alleys, supplying and maintaining a range of interactive machines including coin pushers, toy grabbers and video games, amongst many other products. A four-year contract has been signed by MFA Bowl, who operate 33 bowling alleys from North Shields to Jersey, and a three year contract has been won with Bowlplex to supply amusement with prizes machines, alongside a two year contract for service and maintenance across all Bowlplex’s 17 UK outlets.

Commenting on the deals, Adam Hodges, CEO of Playnation said: “With the strength of the economy improving, families are spending more time enjoying leisure activities that may have been deemed a luxury a few months ago. Families and groups of young people are still looking for great value and family fun.” Playnation is the UK market leader for FECs and currently operates machines in over 1,000 locations including 74 bowling alleys, first breaking into the market over 20 years ago while operating as part of Inspired Gaming. Playnation was backed by Palatine Private Equity in an MBO in February 2013.

A ‘Classic’ time to invest DISTRIBUTORS

urton-based RLMS Sales believes that now is the B time for FEC operators to invest in some Classic games. The machines in question are the Classic 3 Player Cat D range from Astra Games: Bullion Bars Classic and Party Time Classic. Following an extremely busy EAG, salesman Kevin

Bottrill had this to say: “What’s fabulous about selling this pair of three-players is that they have been proven out in the field.The game branding is iconic for both models and both players and operators alike can really relate to them, in terms of their amusement value, as well as how they

look, acting as a centre piece for any FEC arcade, bingo or even some AGCs. 10p/£5 is still an attractive stake and prize for many players who simply want to have fun and spend time playing such machines, without having to spend much at all.” Sales director Tony

2354-p04-05-industry_Coinslot NEW 04/02/2014 13:44 Page 2

INDUSTRY AMUSEMENTS LEISURE B2B COMMENT NEWSWEEK PUBS Keep beer duty down and create 2,400 jobs. 11

Visitor numbers up year-on-year at EAG EXHIBITION

After its three day run at ExCel, EAG International 2014 closed with a palpable mood of optimism shared by visitors and exhibitors alike. And the figures seem to back this up. n total,5,460 visitors made their way to London’s ExCel in January, a positive reflection due to the number being slightly higher than recorded at the 2013 show. Many exhibitors reported brisk business with orders being taken throughout the entire three day event, and there were favourable comments regarding the number of serious buyers in attendance. Among the exhibitors enthused by the London showing was NSM Music’s Alex Kirby who revealed: “Our EAG offer on the Icon Lite was a huge success and our latest background music offering was also well received.There was a strong overseas representation and on the basis of this start to the year, 2014 is likely to be a very good year indeed,”

he predicted. RLMS Sales’ Phil Boulton also reported a good show: “We are delighted with the initial reaction from our visitors to the array of models we had on show. It turned out to be a real selling show, buoyed by having some proven new product within the range, many fantastic looking new models and of course, new Cat C prize levels going live the week before.” Another exhibitor experiencing a significant interest in new products was Project Coin’sTony Boulton. “We’ve had a good show with a lot of enthusiasm for £100 products. AGC and bingo operators are seizing the opportunity created by the Triennial. We’ve seen a lot of UK buyers.” Sound Leisure’s Chris Black declared: “We’re delighted to have received

Glanville supported Bottrill’s sentiment and went further, in respect to considerations from an operator’s point of view. “There is little to doubt about their performance.They also make perfect sense from an investment point of view. They come at a sensible price and we are also offering an interest-free, sixmonth payment plan on this,whereby operators can spread their payments equally over six months.”The company has clearly taken on board cash flow considerations for the operator.

confirmation of a 250 machine order from Gamestec, plus a further order for 50 machines from another customer. Operators who have previously held back are now investing.” The 2014 EAG International attracted first-time exhibitors from a number of industry sectors, one of which was FutureLogic International which provides printer solutions for a range of applications, including casino/gaming vouchers, petrol pump receipts, medical devices, POS coupons,and labels for assembly-line products. Marketing manager Anette Gauch was pleased with the company’s EAG debut.“This is our first year at EAG International and it was absolutely the right decision.” Another first time

exhibitor was Teddy Mountain, with its Build Your Own Teddy Bear brand. “This is our first year at EAG International.It’s been great to meet overseas visitors,” confirmed sales manager Tina Chiffers. EAG International chairman Martin Burlin was justifiably proud: “It’’s very gratifying to see visitor numbers being maintained this year. Even more gratifying are the favourable comments we’ve received about the show’s smooth organisation and the amount of genuine business being written by exhibitors.This year there were many truly innovative products; a real testament to the creativity of our industry.After a great summer last year and a positiveTriennial for some,operators are investing for the coming season; it’s fantastic news for our industry.”

opportunity for operators to refresh their Cat D offering with a Bullion Bars Classic and Party Time Classic.” Chris Widdowson, key account manager, summed it up: “We first sold a number of Party Time Classics half way through the summer last year.Wherever G l a n v i l l e they went, the performance figures explained:“We are taking orders now were excellent. However, from a seaon both models for pre-Easter delivery sonal point of view it was too late to and coastal operators can then spread really penetrate the market. We’ve their payments right through till Sep- started afresh this year, and added the tember.This must present an excellent Bullion Bars Classic.”

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Coinslot February 7 - February 13, 2014

INDUSTRY AMUSEMENTS LEISURE B2B COMMENT NEWSWEEK

Industry

DEVELOPMENT Burnham Pier plans for an all year kiddie ride fest. 10

Soon to be a galloping success CABINETS

he Ultimate Fan, suppliers of Virtual Racing cabinets, are Texcited by the prize uplift

increase to £100 on Cat C units. “As a company, we feel very positive about the change,” explained Ultimate Fan’s southwest area sales manager, Rex

Sargent. “£100 is a much better level than £70. In time, we’ll have the statistics to get the games right and the manufacturers will get there soon enough. They’re

significantly happier with the higher jackpot. Sales of Cat C will improve, but slowly at first, and we hope to see a marked difference by the summer.”

Gamestec ready to roll with jukebox revolution

Commission amends gaming machine testing strategy REGULATIONS

SINGLE SITE

It was a deal that set the pace at this year’s EAG. Now, Gamestec are ready to rock ‘n roll on to the music scene. amestec commercial director Peter Davies has spoken in more detail about the major new deal signed during EAG that sees the national operator join forces with Sound Leisure/Soundnet andThe Official Charts Company. Under the terms of the exclusive agreement, Gamestec has committed to purchasing and operating 250 jukeboxes bearing The Official Charts Company branding. On the timing of the roll out of the new jukeboxes,Davies revealed:“We expect to receive our first deliveries in March and will install the first phase into our operation in suitable locations where pay to play music is already established, upgrading the existing offer.We will use the product strategically to maximise appeal and revenue. This will be through a combination of upgrades and new installs both with existing and new customers.” The importance of the new, exclusively branded, jukebox was reflected in its grand unveiling which took place at

requirements. It was considered necessary to introduce further clarification as a result of lessons learned from recent compliance cases involving game manufacturers that incorrectly interpreted, misunderstood or simply failed to comply with the requirements of the testing strategy. As a result of the consultation, the Commission has amended the Gaming Machine Testing Strategy as follows: Defined game variants, and testing requirements for random and compensated games. Included additional guidance regarding acceptable forms of recording formal agreements where more than one party is responsible for testing. Official Charts ComClarified testing requirements for exepany. We have been incredibly impressed cutable game code prior to release. with their approach to embracing the Set out a requirement for PML (personal pay-to-play sector and the consumer management licence holder)/responsible appeal the official UK singles charts bring person to sign games off as compliant prior to to the jukeboxes we operate. A fully release in all cases. branded Official Charts Company JukeIn addition, the Commission requested the box was a natural progression and we are industry provide posdelighted to be working with all partners sible options for ‘game to bring this fantastic product to market.” variant’ (various stake/prize/return to player combinations) testing, which was a specific question within the consultation document. The Pro power supplies and a vast majority of responrange of Pool & Billiard acces- dents favoured the sories from the newly created approach whereby the manufacturer would BilliardPro range all finding be allowed to test their own games,and submit their way to London a fort- the results to the test lab, who would then rerun a set number of simulations to check for night ago. John Vallis, Suzo-Happ UK the accuracy of those results.This option was sales director and VP amuse- considered the most efficient and risk averse ment sales EMEA, summed up: and therefore was adopted. Gaming machine testing strategy - revision “We had plenty to talk about [at EAG] with the introduc- 1 - can be downloaded from the gamblingtion of the Pro series and our commission.gov.uk website. The Commission concluded:“We require upcoming February Free For or down to cater for players in All repair service promotion. the industry to comply with the revised testeither a seating or standing Our new UK mini catalogue in ing strategy by 1 May 2014. However, the a handyA5 format gives a great expectation is that the industry will work position. The InteractivePro Table is overview of the most impor- towards the introduction as quickly as possijust one of many new Pro solu- tant innovations and solutions ble. Should any manufacturer/supplier wish tions from Suzo-Happ with we have on offer.We were very to adopt the revised testing strategy in full, prior to this date they may do so.” VisionPro monitors, Power- pleased with the EAG.”

the O2 Arena on January 21.The highprofile launch was attended by some of the pub retail sector’s most influential decision makers as well as members of the music trade press who were given a detailed insight to the workings of the deal by Gamestec, Sound Leisure, Soundnet and The Official Charts Company. Davies said:“Whilst Gamestec has long since moved away from manufacturing‘in house’,the company remains at the forefront of supplying the UK pub, bar and leisure market with payto-play music and operates over 2,000 music products.” He concluded:“We have worked with Sound Leisure and Soundnet closely over the years as our preferred suppliers of content and hardware.We recognise the product quality, investment in research and development and professionalism shown by both organisations as market leading. We are excited to be able to extend this relationship to include the

Suzo pleased with response to InteractivePro PARTS & PERIHPERALS

Suzo-Happ team had of innovations on Tshowheplenty at the EAG International recently.Alongside its range of components and spare parts, visitors were able to see brand new products on display for the first time. True to the company motto ‘solutions focused, technology driven’, the new InteractivePro Table opens up many new opportunities for games developers to provide new, exciting options.The InteractivePro Table is Suzo-Happ’s answer for table gaming.The 42ins display has multi-touch

technology included and the screen can be separated into up to four separate sections, so four players can play at the same time.The robustly-constructed InteractivePro Table can be inclined and moved up

he Gambling Commission has consulted on changes to the current Gaming Machine TTesting Strategy in order to clarify certain

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Coinslot February 7 - February 13, 2014

Industry

INDUSTRY AMUSEMENTS LEISURE B2B

COMMENT NEWSWEEK TAX VAT man cometh - pubcos brace themselves for the knock on the door 22

Coin-op stronghold to maximise historical appeal TOURISM

reat Yarmouth’s residents have been asked for ideas on how to boost heritage tourism across the borough.The town is well-known for its thriving amusement arcades, FECs and sandy beach, but its rich history is another big selling point and council bosses are now calling on locals to help promote its links to the past. Great Yarmouth Borough Council wants to update its cultural heritage on the back of the complete refurbishment of St George’s Theatre and the continuing success of the Tide and Time Museum. The strategy is a formal plan which will guide the council on the best way to invest in and promote the area’s history and traditions from 2014-2019.

Bernard Williamson, chairman of the council’s heritage working group, told local press:“Great Yarmouth is a thriving seaside holiday resort, which generates about five million holiday bed nights plus about four million day visitors a season.” “The council will continue to promote our fantastic beaches, great attractions and our varied entertainment, but is looking to expand and develop the tourism offer by shouting a bit louder about the many heritage gems in the borough which are often overlooked by both residents and visitors. Once these are pointed out and explained, people are amazed by what we’ve got here. Even something as simple as better understanding and awareness among the community of the area’s heritage could help

residents to act as informal‘heritage ambassadors’, proudly encouraging visitors to come and see the sites for themselves.” When complete, the strategy will set out action points for areas across the borough, including how to promote the region’s heritage, how to engage the local community in heritage, how to support the maintenance and regeneration of the historic buildings, how to bring heritage to life, and how heritage can act as an economic driver. The council is also consulting with local operators, Norfolk Museum Service, Great Yarmouth Tourist Information Centre, Norfolk Library Service, local history societies, volunteers, and the owners of independent museums.The final document is due to be adopted by cabinet in April.

Euro Pinball Championship to be held at ENADA PINBALL

ENADA Spring show is set to host the Pinball Championship, featurTingheEuropean World Champion Jorgen Holm. The championship will be held from March 21-23 at Rimini Fiera, which is also host to ENADA Spring - the 26th edition of this international amusement and gaming machine show, running from 19-21 March. Registration for the championship recently closed after reaching the maximum number of entrants allowed - 240 players, which is a record for this type of event. The interest and participation levels will come as good news to UK pinball specialist Pinball Heaven, which supplies parts and peripherals for all types of pintable. Fifteen nations will contest the team competition on the first day of the European championship, March 21. The 240 individual players will compete for the title of European Champion, including local contender Daniele Acciari and current World Champion, Sweden’s Jorgen Holm. The event is organised by IFPA Italia, Rimini Fiera and Tecnoplay.

Duo jailed for amusement arcade armed robbery CRIME

Police have said that ‘the streets are safer’ without two prolific thieves who threatened a Wallsend amusement arcade’s staff with a hammer and a screwdriver. pair of fruit machine thieves have been brought to justice. Police A described Robert John Nicholson and Robert John James Thompson as ‘dangerous’ after they were jailed for the armed raid on Vegas Amusements in Wallsend, perpetrated on October 10, 2013. The pair stole cash and gaming tokens during the robbery. Nicholson, 32, and Thompson, 35, both pleaded guilty to the robbery and being in possession of an offensive weapon, at Newcastle Crown Court along with three joint charges of burglary for break-ins. Nicholson was jailed for seven and a half years and Thompson six and a half. Northumbria Police’s North Tyneside Chief Inspector Mandy Shea told local press:“Nicholson and Thompson are both prolific criminals that have histories of committing offences all across the Northumbria Police force area.They are clearly dangerous individuals and it’s reassuring that they will now be off the streets for a very long time.” She added: “It’s thanks to the hard work of the investigating officers that the two were found, arrested and subsequently charged with the robbery and burglaries, and the sentences handed to these two men should act as a warning to anyone considering committing crime in North Tyneside and across the force.” Northumbria Police and Crime Commissioner Vera Baird added: “People who work in our local businesses and shops should be able to go to work without fearing armed robberies at their premises.”

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2354-p10-Amusements_Coinslot NEW 04/02/2014 12:27 Page 1

Coinslot February 7 - February 13, 2014

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Burnham Pier roof passes first approval stage

MP calls for seaside resorts to diversify economies

PIERS

RESORTS

If given full approval for a new roof, Burnham Pier owner Louise Parkin plans to invest in new kiddie rides for the attraction.

Liberal Democrat Adrian Sanders has advised coastal councils that diversification is the key to overcoming the economic challenges they face.

urnham Pier’s hopes of installing a new retractable roof over its forecourt have increased after the resort’s council approved the proposed £100,000 plans. The 35ft retractable roof, part of a series of refurbishments to mark the pier’s 100th year in operation, must now get full approval from Sedgemoor District Council later this month. Louise Parkin, manager and owner of the pier, said the new roof would make a huge impact to her business if it gets the go-ahead. She told Coinslot:“At the moment I can seat about 80 people, but only 30 in bad weather. So that extra 50 people will have a big impact, and that’s not just in one sitting, it’s all day long. “We are open from nine in the morning until 10 at night, so that’s a lot of potential extra custom.” It will also help from a coin-op perspective.At the moment Parkin and her staff have to move their kiddie rides outside and

inside every day, so the pier only operates the more robust all-weather kind, like Bob The Builder and Thomas The Tank Engine. At last month’s EAG show, Parkin said she saw some “beautiful” rides that, if able to remain in situ, the pier would be able to operate, opening up yet more extra revenue earning potential. She explained: “There were several kiddie rides that I would definitely be interested in purchasing if we get the roof. If we don’t, then we couldn’t have them. “We couldn’t move them

in and out every night,as by the end of the season there’d be nothing left of them.” Given the vagaries of the British weather and the fact that Burnham Pier is a privately maintained structure, the ability to become a year-round attraction would also have a profound impact on the business. Parkin commented:“We will be a wet-weather facility. Where at present our kiosk opens from Easter through to November and then weekends only in between, we are hoping that it will continue throughout the year once

the roof is in place. “It will probably only be 11am until 4pm during the winter,but that’s enough to keep it ticking over. “Then in the low season, from March until June, where we would normally close around 6pm, I’m hoping we’ll be able to stay open.” With the fire at Westonsuper-Mare’s Grand Pier increasing Burnham’s insurance by 240 per cent and its arcade takings down 75 per cent since 2007, Parkin said the refurbishment plans were born of a need to diversify. She added: “Originally there was a big dichotomy between the amusements and catering sides of the business, but now they are working together, with one supporting the other and vice versa. “They have to - the cost of maintaining the pier is enormous. We don’t want to leave it until we are in desperate straits; we are trying to make a difference now before we get into that situation.”

MP Adrian Sanders has called on Tlocalorbay councils at seaside resorts to tackle the challenges holding them back by diversifying their economies. With councils in England facing upcoming funding cuts, Sanders said they needed to grow their hospitality offering, encourage tourism and capitalise on the seaside’s natural attractions to attract investment. He identified poor employment opportunities, combined with poor housing and demands on public services that exceed the resources allocated to them, as the common challenges that had stunted growth for years at all larger Victorian seaside resorts. Writing in local paper the Herald Express, Sanders said that the response from Torbay Council had always been a reluctance to challenge its

low-paid and low-value employment-based local economy. He commented: “We consistently fail to counter the fact that less of the profit from tourism stays in the locality, as familyowned local businesses are replaced by national chains of pubs and food outlets, accommodation providers and visitor attractions. “The answer is economic diversification with the aim of raising incomes across the board. This is crucially about assisting new business start-ups with long-term support to help them prosper and grow and spend their profits locally. “But it’s also about growing the wider hospitality sector, encouraging tourism to develop highervalue trade, and capitalising on the environmental attractions of the seaside to attract business relocation and inward investors.”

Conference win boosts Blackpool’s tourism hopes TOURISM

musement and gaming businesses in Blackpool could be A set for a boost after the resort secured an event that will see hundreds of tour operators arrive to encourage overseas visitors to holiday there. Leading trade association UKinbound, the only one that focuses solely on the interests of the UK’s inbound tourism sector, is holding its annual convention in the resort in February. The business tourism team at VisitBlackpool successfully secured the conference after taking part in a bidding process

pool with the view of welcoming many more overseas visitors to the resort. Councillor Graham Cain, Blackpool Council cabinet member for tourism and leisure, said the UKinbound conference would be important for Blackpool’s visitor economy. He commented:“This is a great opportunity to showcase our fantastic resort to tour operators from all over the UK who, in turn, will then pass the word on to their with other UK resorts and cities. international clients helping us It is now hoped the two-day to attract overseas visitors. “We already attract tourists event, which takes place February 5-6, will encourage operators from overseas every year with to spread the word about Black- our major events such as dance

festivals, the World Matchplay Darts, Showzam! and the annual Magic Convention. “It is very easy for people to think of Blackpool as a holiday destination purely for UK residents but this is not the case and by welcoming UKinbound to the resort we would hope to see a rise in the number of international visitors.” The annual convention promises to be a pivotal forum in which to discuss the future of the inbound tourism industry, looking at opportunities and potential obstacles that could impact upon visitor numbers to the UK. During the event delegates will

also take in leisure attractions including Blackpool Pleasure Beach and The Blackpool Tower. It is being billed as a balanced mix of business opportunities, staff development, political debate and celebration and will be attended by more than 200 key industry figures. Cain added:“The best way to sell a destination is to show people just how much you have to offer and these tour operators and agents will be able to see firsthand how Blackpool caters for every visitor and how the resort has changed with increasing regeneration and investment in recent years.”

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Leisure

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PUBS

tar Pubs & Bars is to invest £18.5m across its Sestate in 2014.

SINGLE SITE

The pub industry has stepped up its campaign to secure a freeze on beer tax. The figures are being rolled out now, and they’re looking extremely persuasive. freeze in beer duty in the Budget would secure 2,400 jobs this year alone, believe Britain’s brewers. A status quo would build on the suc-

from Oxford Economics.This would provide a further boost to the industry and would be warmly welcomed by single site operators. British beer drinkers pay 42 per cent of the entire EU beer duty bill. For every pint sold in pubs,the government receives 50 times more in tax revenues than the brewer retains in profit.Nearly half of brewer turnover,and a pound in every three spent in pubs, goes to the Exchequer. Last year’s duty cut led to renewed confidence within the sector. Last week, the

New bingo hall slated for Farnborough BINGO

Rushmoor Borough Council has approved an application to turn a vacant Pizza Hut restaurant into a bingo hall. he owners of a proposed new bingo club, which is Tscheduled to open in Farnborough later this year,have stated that the premises will be“very welcome”in the town centre. An application submitted to Rushmoor Borough Council in 2013 to convert a Pizza Hut restaurant, which has been empty for over three years,into a bingo hall has been approved by the council’s development control committee. Despite a unanimous vote in favour of the application, Councillor John Marsh, representing the Fernhill ward, said he could think of better uses for the vacant unit. He told local press:“All I can say about this application is the only good thing about it is that it brings an otherwise empty unit into use.We have to come up with very good reasons to reject an application, which I couldn’t.” The new bingo hall in the town’s Queensmead shopping area, is due to open this

summer and will operate from 10am to 11pm daily. Inevitably, opposition came from an antigambling angle, with one local resident stating:“This is just not what Queensmead should contain. Queensmead needs to become a hub for small independent shops and cafes that will draw people of all ages into the area.A gambling establishment is not good for the community and will downgrade the area considerably. It will lower the tone of the area and may encourage other such establishments in the future,putting off the kind of independent traders Farnborough needs.” However, Kevin Scott, an agent for the owners of the bingo hall,said it will add to the mix of town centre uses and provide additional vitality. He stated in the application that the new business will create opportunities to improve security in the town centre by installing additional surveillance while supporting the development of an evening

economy and occupying a long-term vacant unit. St Modwen, the developers carrying out the regeneration of Farnborough town centre, took on a lease with Gala Bingo in 2010, on the first floor of Queensmead,however the site has never opened for trade. Simon Hannah, the applicant for the new bingo hall,said he believes it will be ‘very different from anything that players will have experienced in the past’ and Farnborough is the perfect location for it. He concluded: “We are delighted to have the opportunity to rejuvenate a property which has been empty for a number of years, and is fast becoming an eyesore in an area which has had a lot of money spent on improvements recently. There are many bingo players who currently travel from the local area, as far afield as Basingstoke and Bracknell, so a facility in the town should be very welcome.”

Email: al@sjc.co.uk

Big investment from Star

Pub sector calls for further beer duty freeze cess of last year’s historic Budget duty cut - promoting jobs, growth, and investment in Britain’s brewing and pub sector.This was the message to the Treasury from Britain’s brewers and pubs last week, as they put their Budget case to Economic Secretary to the Treasury, Nicky Morgan MP. Industry CEOs told Morgan that a duty freeze in 2014 would lead to 2,400 additional jobs in the first year alone,at an approximate cost of £4m to the government, according to new research

BBPA reported that beer sales had grown for the second successive quarter the first time this has happened in ten years. Companies have been committing to reducing prices, increasing investment and creating additional jobs, but a duty hike in March could rapidly undo these benefits.A duty freeze, however, would create jobs, boost the economy and put money back in people’s pockets. Brigid Simmonds, BBPA CEO, commented:“There is a compelling case for a beer

duty freeze.The government has made an excellent start,in abolishing the beer duty escalator and with the historic cut in duty last year. It has been a real boost to jobs and growth in the sector, at a time when the economy most needs it. The recovery remains fragile, but we can continue this good news story for the government, with a further duty freeze.And in avoiding further damage to beer and pub businesses, a freeze can be achieved with virtually no cost to the Treasury. It is a win-win situation for the government.”

A sixth of the Heinekenowned company’s 1,300 pubs will receive investment, with 60 to 70 major refurbishments enjoying an average spend of £135,000. There will also be more than 100 external signage and redecoration schemes. Star plan to focus the future on food. The aim is that it will account for 50% of sales in the estate’s venues by 2020.

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World of Rides enjoys the high quality of visitors at EAG EAG proved an excellent outlet for World of Rides this year as they confirmed that the rising attendee quality at the show generated its highest ever sales figures. orld of Rides journeyed home from London a fortnight ago in somewhat buoyant mood. The Durham based children’s ride manufacturer and distributor had exhibited their wares at EAG and were encouraged by the fact that the visitors to their stand were, in the main, looking to buy. ‘’The quality of those visitors that attended was of such a high quality that World of Rides enjoyed their highest level of orders ever,” said sales and customer support manager, Andrew Robinson. He attributed the company’s success to the diverse range of products they had on display at EAG. “A full cross section of the leisure market needed exactly the kind of family rides for their locations that we were exhibiting,” he said. Despite a lack of visitors from overseas,it was difficult to dampen the positive mood around the World of Rides

stand, with local operators providing more than enough business to keep sales ticking over. “Over fifty percent of our serious enquires came initially from UK operators,” said Robinson, “and over twenty percent of them then went on to confirm their orders before the close of the show.” Even now that the show has ended, its constructive effects have continued to resonate. “By the time that the remaining enquiries are followed up over the next couple of weeks, this EAG will most certainly have set a new record for us, said Robinson. “Our phones have not stopped ringing since we returned.” As the early sales come in following the show, the most popular World of Rides products were children’s versions of gokarts and bumper cards. ‘’We are really

pleased that we were able to meet the market’s needs so exactly for 2014,” said Robinson. “Our new Mini Disco Dodgem Bumper Car, along with our Formula One Go-Karts and Bumper Boats in particular, were both really great hits.’’ All in all, there’s no doubting that the company had a successful show and plans are already afoot for next year’s stand. “We will definitely be re-booking for next years EAG exhibition,” confirmed Robinson.

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Coinslot FEBRUARY 7 - FEBRUARY 13, 2014

2354-p22-23-Comment_Coinslot NEW 04/02/2014 14:14 Page 1

Coinslot February 7 - February 13, 2014

Comment PM gives pubs World Cup boost

“

alex lee comment espite the Home Office initially rejecting a plea from the BBPA to allow pubs to open beyond their usual 11pm for the World Cup, Prime Minister David Cameron has intervened. On February 3, the Coalition Leader tweeted:“I have ordered a rethink on pub opening times for England's World Cup games - will consult with pub trade, police and councils.” With single site operators serving the AWP, SWP, jukebox and pool sectors crying out for increased levels of footfall, it looks like they might just get their wish – even if it’s just for evenings when England are playing. Commenting on Commenting onThe Prime Minister’s intervention regarding the late opening of pubs during the World Cup, Brigid Simmonds,BBPA Chief Executive,commented: “This would make for the most fantastic news for thousands of publicans and millions of football fans. I am delighted that the Prime Minister has intervened to back Britain’s pubs and make clear that England’sWorld Cup campaign is a time for celebration.” She concluded:“This common sense decision would remove a great deal of bureaucracy for pubs and local councils – and makes clear that the best place to enjoy the England team’s journey is in your local pub.We are absolutely thrilled that our efforts have made a real difference for football fans and pubs.” While a definitive statement regarding how the above will work in practise, or indeed how late pubs will be permitted to open till, hadn’t been made at the time of writing, the above news certainly bodes well for the single site sector and comes nicely on the back of the recent Triennial Cat C £100 prize uplift announcement and a certain jukebox deal that I’m sure you must have heard about by now. While there will be some, inevitable, opposition in some quarters, the Prime Minister’s decision should definitely see a marked increase in pub custom and have a positive knock-on effect in terms of single site cashboxes. Could it be, therefore, that 2014 signals a summer of contentment for Cat C? Perhaps we should all sign a petition to implore the England squad to practise their penalties.

“Pubs to open late for the World Cup? I’ll drink to that!”

HMRC chases down pub machin

Pubcos and licens again and Otley is set

alex lee media watch MRC has issued a statement claiming it will be pursuing H pub operators for underpaid VAT, according to the Morning Advertiser. This followed a Court of Appeal decision concerning the Rank Group last October relating to VAT on gaming machine takings. In 2009, a High Court ruling led to hundreds of pub operators and licensees receiving tax rebates on overpaid VAT. It said the fact VAT had been charged on some machines - including AWPs used in pubs - and not others had broken EU competition law. HMRC appealed at the European Court of Justice but it agreed that having different VAT charges on different types of machines represented an “infringement” of the principle of fiscal neutrality. However, the latest ruling in the Court of Appeal agreed with HMRC that the multi-terminal betting machines should have been taxable. According to the government

department, all businesses that made a valid claim and received a repayment were advised that, in the event of HMRC being successful in litigation, recovery action would be taken. An HMRC spokesman said: “The Court of Appeal agreed with HMRC’s arguments regarding the taxation of multiterminal betting machines. These will now fall within the definition of gaming machines, and be taxed in the same way. Companies that claimed a VAT rebate will be asked to repay the money received. All companies were told when claiming that this would be the case if HMRC won the appeal, which is in line with standard practice.” HMRC said it will write to every affected business in the next few weeks, setting out the amount it received. The letter will include guidance about how to repay the money. A number of pubco agreements split the income of AWP machines 50:50 between the pubco and tenant -

meaning any VAT refunds have been split down the middle. In cases where the full refund has been sent to the licensee, HMRC confirmed it will pursue the licensee for the full amount and not the pubco for its 50 per cent. If a pubco has claimed on behalf of the host, the pubco will be liable to refund the tax. Meanwhile, the Cat C machine market is edging away from the abyss thanks to common sense exercised by both the operators and the retailers in the negotiations which have taken place since Sceptre Leisure CEO Ken Turner announced its increase in rents in November 2013, according to Intergame. Turner, however, believes that “the industry is still in intensive care”. Turner admitted that it was with considerable trepidation that he initiated the move to introduce an 8.7 per cent increase to Sceptre’s machine rents. “I was apprehensive at the thought to going to our cus-

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“We haven’t considered installing cashless systems as they’re not always the most practical solution. It’s not in our mindset, nor do we think it’s in the mindset of an average UK family. The kids like to fill up their coin cups too much!”

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ADAM HODGES, CEO, PLAYNATION

“ ”

quote unquote

“All we want is a fair level of taxation so the sector can grow through investment. Demographics shift and this will inevitably lead to the odd closure, but with a fair tax regime new clubs will appear, existing successful ones will see money invested in them with the overall effect being that all bingo will be the modern, exciting and relevant communitydriven pastime that it deserves to be.” MILES BARON, CEO, BINGO ASSOCIATION

“I’ve got 80 machines on my arcade floor at present. It’s a decent-sized family arcade and we do quite a lot of redemption. Having the arcade gives me a good take on what works well in terms of plush and gifts. I’ve personally invested in some kiddie rides for the family area and in terms of the allcash area I keep up to date with B3s. I am optimistic that Category C will give us all a boost this year - I do hope that the uplift from £70 to £100 will be well-received by players.” CHRIS OLDLAND, SEASIDE OPERATOR

“We are not trying to control the world’s use of the word Candy; having a trade mark doesn’t allow us to do that anyway. We’re just trying to prevent others from creating games that unfairly capitalise on our success.” RICCARDO ZACCONI, CEO, KING.COM

machine VAT

os and licensees will have to pay back VAT rebates, the AWP sector could be profitable and Otley is set to benefit from a new arcade.

tomers with such an increase against a background where historically the retailers have held the whip-hand in machine rental levels for so many years. But I felt that it had to be right because of all of the economic factors which made operating Cat C machines in Britain today, bluntly, no longer a good business. The banks were reluctant to inject cash into the business to help fund operators’ purchases. Everything had gone up, from petrol to machine prices - everything, including the cost of living. On the other hand rents for machines had been rooted at 20-year-old levels.” Turner said that two months down the line the picture had changed. “We are a long way from being out of the woods, but the sector now has a chance. The operators were collectively heading towards the abyss and we had to convince the retailers that they would go over with us if some-

thing didn’t happen. We stepped back and they stepped back with us.” He is impressed by the professionalism and understanding shown by the retailers. “We sat down with all of those not on contracts with us and when we laid out the problems of the industry, they were prepared to accept our position and help to rectify it. Every one of them co-operated and at Sceptre we have rent improvements of between 8-12 per cent as a result.” Those retailers - and the ones on contract with Sceptre - were aware that the November 2013 increases were only a step on the way to bringing profitability back to the machine sector “and are prepared to accept that.” And finally, a derelict swimming pool could be the new site for an amusement arcade in Otley, according to the Ilkley Gazettte. Councillor Ryk Downes (Lib Dem, Otley &

Yeadon) says the state of the old swimming pool site in Wharfemeadows Park has been raised as a concern by both residents and visitors. He is calling on the city council, as the park owners, and local people to come up with ideas to improve the area. He said: “The site has been empty for some time now and is becoming increasingly derelict. This eyesore site is not a good advert for Otley. A number of residents have already approached us with suggestions for possible uses, including an improved caférestaurant, public toilets, amusement arcade, high-tech business centre or store for boats on the river.”

The most significant gambling issue is the easiest to resolve The Campaign for Fairer Gambling’s Derek Webb has given his spin on the latest House of Commons debate surrounding the thorny issue of FOBT machines.

derek webb politics he usual Conservative suspects entered the race to be the bookTmakers’ favourite MP in the recent Opposition Debate on giving more power to local authorities to control FOBTs, but a strong run by Labour MP Gerry Sutcliffe left them all standing. Mr Sutcliffe, who declared his interest in representing the racecourse bookmakers pitch association, wore a variety of colours in running. He spoke as an MP, but referred to his roles as a past Minister responsible at DCMS and as a trustee of the Responsible Gambling Trust. In 2008, Mr Sutcliffe advocated looking at FOBTs whilst at the same time trying to resolve the Horseracing Levy issue.The Levy was resolved, but no FOBT specific review has ever been undertaken. By 2009, Mr Sutcliffe had already agreed to a review of all high-stakes, high-prize Cat B machines, diluting the effect of a B2only FOBT review. The disastrous consequence is obvious in the recently published Nat Cen research entitled "Examining player behaviour: a qualitative exploration".This research studied machine gamblers in situ in arcades and bingo halls, but it did not study in situ FOBT gamblers, because the bookmakers would not allow researchers access to betting shops. The RGT, the body that this research was delivered to, has not offered any explanation as to why a trust primarily funded by bookmakers, with a bookmaking chair and bookmaking trustees, was unable to persuade bookmakers to enable vital qualitative FOBT research by the Nat Cen researchers, whom the government are relying on to inform them about FOBTs. Mr Sutcliffe condemned the Cam-

paign for Fairer Gambling in Parliament for raising concerns around the RGT research. But in the context of the refusal of access to FOBTs, how can it not be a cause for concern? Just as there may be some good people on the boards of bookmakers there may be some good people on the RGT, but the presence of good people is never a guarantee of good outcomes. Mr Sutcliffe also questioned in Parliament why the campaign does not focus on other gambling issues. Put simply, government has the power to do something today about FOBTs - without primary legislation - by reducing the maximum stake from £100 to £2 per spin. So FOBTs, the most significant gambling issue, is the easiest to immediately resolve. Mr Sutcliffe must be unaware that FOBTs are now the high street equivalent of 23 very-super-casinos. FOBT losses from gamblers, on a per machine basis,are on parity with the losses from slot machine gamblers in the top 23 Las Vegas Strip casinos (which are open 24 hours a day, exclude under-age 21 gamblers, allow alcohol consumption at machines and cater to gamblers who can afford to travel to and stay in the casino hotels). In Parliament, Mr Sutcliffe must have had a memory lapse when he said that Neil Goulden, chair of the RGT, was not also chair of the ABB, because that very same day Mr Goulden was on Channel 4 news defending the bookmakers in his role as chair of the ABB, in this illuminating interview! Mr Goulden has stated he will step down from the ABB but he is still “acting chair” until the position is filled. Maybe this is an opportunity for a retired politician to represent bookmakers in an official capacity?

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Newsweek IRISH GAMING CONFERENCE PROGRAMME UNVEILED he programme of events that comprise the Irish Gaming Conference has been announced. The event, which takes place alongside the Irish Gaming Show will be held on March 45 at the Morans Red Cow Conference Centre in Dublin. The first session will provide an update on Irish gambling legislation, progress and details of how Ireland’s Department of Justice plans to introduce the new regulator’s office, the OGCI (Office of Gambling Control Ireland).

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EAAPA organiser cancels show he organiser of this month’s Eurasian Amusement Parks andAttractions Expo has announced that it has cancelled the event. Smile Expo,which had been due to host EAAPA at Moscow’s Sokolniki Exhibition Centre on February 12-14,said it was no longer financially viable. Representatives of the UK coin-op industry have been left disappointed, with the likes of Sega Amusements Europe and United Distributing Company booking some of the largest space on the floor show. In a statement, the company said: “Since all decided to call off EAAPA project due to its differefforts are concentrated on IT and technological ences with the integral company strategy. “Taking into account the long-term perspecindustries development, as well as interactive entertainment andAR,company management has tive, Smile Expo does not consider a possibility to

A panel of Irish and international machine operators will discuss how the future of gaming machine operations will be affected by new legislation and what the industry needs to do to prepare for the eventual adoption of new laws, regulations and codes of practice.

INFLATABLES SHOW MOVES TO NEW HOME NPAS, the UK’s largest inflatables and play industry expo, has moved to a new home for 2014 due to demand for extra exhibition space. The event will now be held at the Bruntingthorpe Proving

Ground in Leicestershire on February 23-24. A former US Air Force base, the site has over 30,000 square feet of floor space to showcase the latest inflatable and play products on the market. Show organiser Peter Grand said: “The last few months have been very interesting for

develop a financially successful venue in parks and attractions industry. “This is affected by the market nature and conditions, as well as competitiveness that influences pricing.” In 2013,EAAPA featured 120 Russian and international companies presenting machines across 60 categories.The show attracted 4,000 visitors. Smile Expo said it would continue to promote EAAPA Kiev, which had its inaugural outing last autumn in Ukraine. That exhibition proved very popular amongst Ukrainian amusement businesses,attracting high attendance and encouraging many exhibitors to sign contracts for this year’s event.

the INPAS team and we have been listening to exhibitors and visitors and have decided on a whole new approach. “We approached INPAS 2014 with a completely open mind with plans to rebrand and a full change for 2015. “However, it became apparent that change was needed

sooner rather than later and we were fortunate to agree terms with Bouncy Castle Network, who is headline sponsor of INPAS 2014.”

Calendar UK EVENTS FEBRUARY 2014 11-13 Digital Signage Expo Sands Expo Center Las Vegas Nevada US www.digitalsignageexpo.net

INTERNATIONAL EVENTS FEBRUARY 2014 5-7 IAAPI Bombay Exhibition Centre Goregaon India www.iaapi.org 12-14 EAAPA 2014 Sokolniki Exhibition Centre Moscow Russia www.eaapa.ru

MARCH 2014 1-3 CIAE Guangzhou Expo 2014 China Import and Export Fair Guangzhou China www.chinaamusement.net

4-5 Irish Gaming Show Moran Red Cow Conference Centre Dublin Ireland www.purcellassociates.net

4-6 Vending Expo Kiev International Exhibition Centre Ukraine www.vendingexpo.kiev.ua

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