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WWW.CASINOREVIEW-ONLINE.COM • SEPTEMBER 2013 • EDITION 131

Asia & Oceania CASINO IN PARADISE THE AQUIS GREAT BARRIER REEF PROJECT GATHERS MOMENTUM 16-17 How modern legislation is expected to work

LUCK OF THE IRISH

G2E: A GUIDE TO THE 2013 SHOW

POLITICS 92-94

THE BUSINESS NEWSPAPER FOR THE GLOBAL CASINO INDUSTRY

Could Atlantic Club in Atlantic City return to the ownership of the man who built it?

UNITED STATES

After years of declining revenues, Atlantic City’s prospects could be looking up as online gaming attracts interest from major industry players in the US and internationally.

ATLANTIC CITY

Wynn’s interest in Atlantic City boosts revival hopes

he casino industry’s most flamboyant mogul Steve Wynn has applied for an online gaming licence in New Jersey - expected to be the most lucrative base for internet gambling in the US. The licence must be tied to an existing land-based casino in Atlantic City: the struggling resort casinos are now getting a fillip from tie-ups and investments from international online gambling operators and acquisition interest from those, such as Wynn, who want to go it alone.

Wynn’s interest in a New Jersey “casino service licence”, the vehicle by online gaming is to be offered in the state, was revealed in August: now the Las Vegas Review Journal has linked him with a potential bid on the Atlantic Club at the southern end of the Boardwalk. Wynn

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built the casino, then named the Golden Nugget Atlantic City, in 1980 and was his first big project after turning round Golden Nugget in Las Vegas. However, he sold up in 1987 for $440m (E333m at today’s rates) after a series of arguments with state authorities.

According to LVRJ, however, he has always retained a soft spot for the venue, returning to stay in his old suite from time to time. It also say that after Superstorm Sandy that lashed the east coast almost a year ago, he asked: “How did my building hold up?”

Atlantic Club, owned by Colony Capital, was the third lowest revenue generator in Atlantic City in the first half of this year and made the biggest loss. However, it was also the venue that improved most, with revenues up by 16 per cent and operating losses shortened by 55 per cent. But with potential online gambling revenues in

New Jersey expected to far outstrip those of Nevada at between $500m and $1bn (E380m - E760m) per year, its value as anchor location could be substantial.

Even so, a deal with the owners of the PokerStars website that fell through in May and only reached a definitive end in August valued the resort at just $15m (E11.4m).

The lifeline for Atlantic City resorts is that after seven years or more of a steady decline as a result of the wider availability of casinos across the United States, especially the newly legalised and substantial ones in the neighbouring states, they finally have a reason to exist.

The investment and marketing tie-ups could set them off in a new direction. At the very least the potential for online gambling means that operators will need their land-based anchors to remain in business.

All 12 resorts have registered

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their intentions to operate online gaming, which the state hopes to launch by the end of the year, even if partners have not yet been finalised by all of them.

With Europe and especially the UK having a well developed market, many that have been named are from across the water: Caesar’s Entertainment has hooked up with 888 Holdings for its four venues; Gamesys has signed up with Tropicana; Trump Plaza is reported to be partnership with Betfair while Borgata has taken on Bwin.party.

All these resorts, however tenuously some of them, remain in the black. The loss-making resorts, Atlantic Club as well as also Golden Nugget Atlantic City and Revel, remain potential targets for well-funded companies who want to try their own online operations.

Golden Nugget, owned by Landry’s, lost $6.5m (E4.9m) in the first half, despite a substan-

tial renovation programme last year, and could now be sold.

Landry’s said it had been approached by the investment bank Houlihan Lokey to consider selling Golden Nugget or its Internet gambling rights “due to some interest from outside parties”.

In a statement on August 30, the casino’s general manager Tom Pohlman said: “In light of our $200m [E151m] investment in this gaming asset and less than stellar results in the Atlantic City market, Landry’s indicated to Houlihan Lokey that it would listen to any proposal. However, absolutely no decision has been made to sell the property or Internet gaming rights.”

He added: “Unlike the majority of the Atlantic City casinos, Landry’s has no outstanding debt on the casino and remains committed to the Atlantic City marketplace and Internet gaming.”

BOOTH 2912

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News World

GREECE

Regency Casinos has proposed a bold leap from the mountain to the plain and has marshalled some compelling economic arguments to support its case compelling enough it hopes to overcome the inevitable political objections. Hugh Sorrill reports.

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RELOCATION

Casino Mont Parnes asks to move off the mountain

Casino Mont Parnes is inconveniently situated on top of a mountain

egency Casinos has submitted a proposal to the Greek government to move Casino Mont Parnes from its mountaintop site north of Athens to a more modern, more easily accessible location closer to its customers, both locals and tourists.

Speaking to International Casino Review, Regency’s CEO Ian Gosling said: “We want to move to a more preferential position. People can only get to the casino via the funitel aerial tramway, which makes it more difficult to attract customers than necessary, the building is old and difficult to maintain and there is a strong economic case that I think will appeal to the government.”

Regency wrote to the minister for tourism Olga Kefalogianni with its request in mid-August.

“The casino is 49 per cent owned by the state,” said Gosling. “While we have been able to introduce costsaving measures, business is not what it once was nor is the value of the state’s holding - and it’s getting less in taxes as well. If we can move to a better area that will mean more visitors, more revenues both for us and the government.”

The company wants to move into a purpose-built building but has not specified where.

“While we might appreciate the footfall, we know we aren’t going to set ourselves up in Syntagma Square. We haven’t yet identified a location because we want to work with the government and be sensitive to its concerns: predominantly residential locations are also going to be out.”

Under the austerity measures imposed on Greece by the Troika, the government is obliged to sell many of the stateowned assets, including the 49 per cent stake in Casino Mont Parnes.

“Even if the sale takes place before a move, it would significantly increase the value of the government’s holding,” said Gosling. “That is going to appeal very much to TAIPED, which is the body handling privatisations.”

There is also less pecuniary advantage to Greece.

“Regency Casinos has undertaken to the government that if a move can be agreed, we will refurbish the current building, creating a hostel or education centre, whatever is decided appropriate, and then give it back to the state.”

Public finances being what they are, there is precious little opportunity for the public purse to fund such luxuries.

There is undoubtedly some opposition to the proposal. The local Member of Parliament for Loutraki has been mobilised to try and keep Casino Mont Parnes on the mountain. A new venue with much better access to Greece’s largest domestic market would, he is arguing, present a significant commercial advantage even over Club Hotel Casino Loutraki, 80km west of Athens in Corinthia that could send the teetering enterprise into the abyss.

“We believe that moving makes great sense,” said Gosling. “It will assure the future of hundreds of jobs, raise increased revenues

through taxation for the government, increase the value of the government’s holding, which it must sell any, and help improve both the environment and the appreciation of the environment on Mount Parnitha.”

Ian Gosling, CEO of Regency Casinos

OPENING

Seneca Buffalo Creek Casino opens at last UNITED STATES

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hile New York voters will decide in November on whether to allow up to seven casinos on non-

tribal land in the state, the latest tribal venue has opened on the waterfront of Buffalo.

The new Seneca Buffalo Creek Casino has been ten years in the making with various legal

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challenges thrown up before it. The original plans included a hotel, a high-end restaurant and entertainment facilities: after much negotiation it has opened as a 6,200sq m casino-only with three

small restaurants.

It is operated by the Seneca Nation’s Seneca Gaming Corp, which also runs venues at the nearby Niagara Falls and in Salamanca 100km south of Buffalo. Chairman Kevin

Seneca said: “It’s a huge makeover for this portion of the city. It’s becoming a new entertainment district for Buffalo instead of an old manufacturing area.”

Seneca Nation president Barry Snyder added:

“It’s not only good for us, it’s always been good for western New York and the City of Buffalo. It’s something we knew we could do. And when the Senecas say they’re going to do something, they do it.”

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CHILE / GREECE / MACAU / RUSSIA / UNITED STATES

ICR NEWS SECTION: EUROPE 6-15 ASIA & OCEANIA 16-21 AFRICA & MIDDLE EAST 22-23 NORTH AMERICA 24-31 SOUTH AMERICA 32-37 COMMENT & ANALYSIS 38-39 INVESTMENT

PARTNERSHIP

Ho to control Primorye resort RUSSIA

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ore details have emerged about Lawrence Ho’s investment in the Primorye casino resort as reported last month.

Through Melco International Development and Summit Ascent, which he controls, Ho will invest HK$514.1m (E50.2m) for a 51 per cent stake in resort.

The total investment for the property, which is already under construction, will be around HK$1bn (E97.6m). The 31,630sq m casino will have 800 gaming machines, 25 VIP tables and 40 massmarket tables.

Expect similar styling of the Palazzo Versace Macau as this one currently under construction in Dubai

SJM teams up with Versace in Macau MACAU

acau’s largest o p e r a t o r Sociedade de Jogos de Macau SJM and Gianni Versace have signed an agreement to open a hotel bearing the trademark “Palazzo Versace” as part of SJM’s new integrated casino resort.

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It is an important partnership for SJM in its first property in Cotai: Versace is a hugely popular brand in Asia. Palazzo Versace Macau will be the first luxury five-star hotel in Macau to be designed by one of the world’s leading fashion houses, and the first Palazzo Versace in Asia.

Commenting on the tie-

up, Dr Ambrose So, chairman of SJM, said: “We are delighted to partner with Versace to bring their commitment to luxury and beauty to SJM’s resort project in Cotai, Macau.

The combined expertise of Versace and SJM will create an unforgettable hospitality experience for Macau’s visitors which will enhance Macau’s role

as a world-class leisure and tourism destination.”

Gian Giacomo Ferraris, CEO of Versace, added: “We are excited to open a Palazzo Versace hotel in Macau, and we are delighted to partner with SJM, such a prestigious player in the industry. The hotel and interior design business is very important to us as it is

part of the brand’s history and we have invaluable know-how coming from major projects in Australia and Dubai among others. We are committed to further develop this business and, as Versace is enjoying great momentum, we continue to evaluate new opportunities in various parts of the world.”

LICENCE

Boldt and Invergaming win Ovalle licence CHILE

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he Ovalle Casino Resort project by Boldt-Argentina and Invergaming-Spain has won the three-horse race for the last of the original 2005-Act casino licences in Chile. The

licence had been originally awarded to Casinos Austria International, which in the end decided not to proceed.

The resort will be located on the north side of the city in the Altos de Tuqui, not far from the airport. Boldt and Invergaming, who have a history of successful projects in

Argentina and Uruguay, will invest US$29m (E22m) in a four-star hotel with 78 rooms with a spa, gym, pool, restaurants and bars, convention centre and observatory among other facilities. The 11,600sq m resort will be centred on the casino, which will feature 230 gaming machine,

13 tables and 60 bingo positions, plus bar, restaurant and auditorium. It will provide more than 270 new direct jobs and provide the foundation for a new tourism infrastructure for the community.

The consortium has two years in which to complete construction.

Boldt and Invergaming’s winning Ovalle Casino Resort

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News World

The changing face of Irish legislation

IRELAND: WITH THE PUBLICATION OF DRAFT GAMBLING LEGISLATION NOW OUT, WILL THE GOVERNMENT’S EFFORTS TO OVERHAUL TWO GENERATIONS OF ANTIQUATED LAWS SUCCEED? POLITICS 92-94 ENQUIRY

Las Vegas Sands pays $47m to end investigation

The probe into Las Vegas Sands’ dealings with a Mexican high-roller now accused of drug trafficking has wounded the company. Cooperative and chastened, the company has agreed to hand over a substantial sum to the government to settle the matter.

UNITED STATES

long-lasting and damaging investigation by the federal government into alleged breaches of money-laundering rules at the Venetian and Palazzo in Las Vegas has ended with Las Vegas Sands (LVS) returning $47.4m (E35.8m) to the US Treasury.

The US Attorney’s Office in Los Angeles said LVS failed to alert authorities

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LVS’s Palazzo in Las Vegas

about suspect transactions made by the Mexico Citybased high-roller Zhenlin Ye Gon, accepting wire transfers and cashier’s cheques between 2005 and 2007.

According the non-prosecution agreement, Ye Gon was early 2007 “the largest all-cash, up-front gambler

the Venetian-Palazzo had ever had to that point”.

In March 2007, Ye Gon’s residence in Mexico City was searched by law enforcement authorities, who seized about $207m (E156.5m) in US currency, the largest-ever currency seizure. He is currently

awaiting extradition to Mexico, where he is charged with drug trafficking, said the US Attorney’s Office.

The federal government has agreed not to prosecute LVS based on the company’s co-operation, according to a letter dated August 26 to

LVS from Assistant US Attorney Kevin Rosenberg to LVS’s attorney Laurence Urgenson as reported by Reuters.

Spokesman for LVS Ron Reese said: “The company co-operated fully and that effort was clearly recognised by the government.”

The Bank Secrecy Act in the United States requires casinos with annual revenue of at least $1m (E756,230) to file suspect activity reports, which are used by government agencies. The US Attorney’s Office said this was the first time a casino has agreed to return those funds to the government.

It’s not the only serious legal complication faced

by LVS this year. In March it said it had “likely” violated the federal Foreign Corrupt Practices Act (FCPA), which outlaws the bribery of foreign officials.

In a Securities and Exchange Commission filing, the company said that the SEC had subpoenaed documents in February 2011 relating to its compliance with the antibribery act while the US Department of Justice also told LVS it was conducting an investigation.

Ron Reese said the FCPA investigation is continuing and that the company was co-operating.

LEGAL

Revel sued over slot losses promise UNITED STATES

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fter a successful, if caveat-laden, promotion in July in which Revel promised to pay back any slot losses over $100, two players are suing the casino and its owners saying the deal was misrepresented. Repayment was only in free play dollars distributed over 20 weeks with no comeback if the player missed a week.

Megan Boyd and Rageen Henderson have alleged the casino “never intended to refund any slot losses” and that the defendants “relied on their deceptively hidden rules to avoid paying refunds”.

AWARDS

Big names in Las Vegas to join Gaming Hall of Fame Gary Loveman, Frank Fahrenkopf, Celine Dion and Guy Savoy

UNITED STATES

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our leading figures in Las Vegas and very far beyond have been chosen by American Gaming Association (AGA) to join its Gaming Hall of Fame in 2013.

Leading the luminaries is Caesars Entertainment’s Gary Loveman, who joined the then Harrah’s Entertainment as COO in 1998 and after implementing Total Rewards the casino industry’s most successful loyalty programme now with 40m

members, became CEO in 2003.

During a period where the industry has been hit by the financial crisis, Loveman, said the AGA, has led Caesars’ successful debt reduction and liquidity improvement strategies, while

4 | casinoreview September 2013

adding Planet Hollywood to the company’s portfolio.

Also joining is Frank Fahrenkopf who founded the AGA 18 years ago and led it until earlier this year. In that time he helped the industry establish a

significant presence in Washington DC fostering a better understanding of the industry by the general public, the media, elected officials and other decision makers.

From the entertainment world,

Celine Dion is honoured. One of the most widely respected singers in pop music history, she is credited as the performer who led the rebirth of the headlining show in Las Vegas.

Finally, three Michelinstarred restaurateur Guy Savoy who brought his culinary magic to Las Vegas in 2006 in what was one of the most eagerly anticipated restaurant openings in the United States.

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WHAT DOES THE CASINO MEAN TO GREAT YARMOUTH

LICENCE

he Edge will create around 300 full and part-time jobs once completed, according to Jones, including a number of apprenticeships.

Great Yarmouth, one of the poorest boroughs in England, has very high levels of unemployment.

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Great Yarmouth casino development given extended licence terms LICENCE UNITED KINGDOM

The licensing authorities in Great Yarmouth have shown flexibility and reconsidered an earlier decision that would have forced the company developing the casino in the town to waste £220,000 during construction. Hugh Sorrill reports on an unusual but welcome show of support from the local authority.

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he Edge, the £35m seafront casino complex in the east coast English resort of Great Yarmouth, has been allowed extra time before it has to start paying its annual gambling licence fee to the local council.

Pleasure & Leisure (P&L), the company that owns the Pleasure Beach amusement park and won the bid to build and operate a 2005 Act Large casino in the town, faced paying £55,000 (E64,000) to maintain the provisional gaming licence awarded in April 2012 until the project is open. Town councillors decided the company had to apply for an operating licence to the Gambling Commission within one year of the provisional licence being awarded even

6 | casinoreview September 2013

though the casino is unbuilt.

The councillors who deal with licensing have now reexamined the matter and have given the company a four-year extension until April 2017, provided it meets certain annual performance targets showing that construction was on track.

The Edge will be built between the Pleasure Beach and the outer harbour. Construction was initially planned to start in 2012, however, the council decision on the bid winner was delayed: the company decided to allow Pleasure Beach, which will be significantly affected by construction, one more season. It also wants to ensure that it has the right partners for the complex, which in addition to a 4,200sq m casino will

feature a hotel, restaurants, multi-screen cinema and 600-space car park.

Albert Jones, managing director of P&L, said: “If all goes to plan we should be on site at some point next year.

As a company it’s about getting the timing right - we don’t want to empty the Pleasure Beach site and have the contracts fall by the wayside. In this economic climate it’s been very frustrating and it’s got to be right for the Pleasure Beach. As a company we don’t want to open something we wished we waited two years to get right. We could open it and get tenants in tomorrow, but it wouldn’t be what we want long term.”

Jones welcomed the licensing committee’s unanimous decision to extend the licence, saying maintain-

ing a licence for a non-existent casino was “like throwing money away”.

Cllr John Holmes, chairman of the licensing committee said it was right to extend the gambling licence deadline to match the fouryear construction period.

He said: “From what I understand, they need that time to do the preparation work. We hope it all comes to fruition, but we were right to give Albert [Jones] the time to put together the package. What we said initially was it seemed under the legislation we had to do it within a certain time. It’s all there and Albert’s certainly comfortable with that. It’s just getting what’s right for him as the owner of the land and what’s right for the town.”

Initial plans for Bath casino unveiled UNITED KINGDOM

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lans for regeneration in the old Roman city of Bath, to include a 2005 Act Small casino, have been unveiled in a public exhibition in the city. The £14m (E16m) also feature two restaurants and a hotel. Developer Deeley Freed hopes to put in a bid for planning permission at the end of September. If approved, work would start on site late next summer, with the building being handed over for fitting out in late 2015. The casino will be operated

by Groupe Partouche in partnership with Global Gaming Ventures.

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AUSTRIA / CROATIA / CYPRUS / FRANCE / GERMANY / GREECE / ITALY / PORTUGAL / SPAIN Will UK’s new tax at source law bring remote gaming into the line?

REMOTE GAMING: THE GAMBLING COMMISSION ESTIMATES THAT THE UK REMOTE GAMBLING MARKET IS WORTH £2BN ...THE NEW TAX WILL RAKE IN £300M FOR THE TREASURY. REMOTE GAMING

LOCATION

Remote operators face UK tax increase

Cologne go in search of a casino location

UNITED KINGDOM

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nline gambling operators, no matter where in the world they are based, will have to pay tax on profits generated from UK players from December 1, 2014 under new proposals laid out by the British government.

In a statement, it said: “Currently, remote gambling operators can, and do, avoid UK taxes by basing themselves offshore. The new rules will create a level playing field across the industry.”

The new rules will be supported by tough enforcement measures, including the creation of new criminal offences.

Failure to comply with them could result in prison sentences of up to seven years, unlimited fines, or the loss of a remote gambling operator’s licence to operate.

This follows last year’s announcement that the UK government would move to taxing gambling on a ‘place of consumption’, rather than on a ‘place of supply’ basis, so that all remote gambling by UK customers, generally carried out online or on the telephone, will be taxed in the UK. The new rules and sanctions are the result of the subsequent consultation exploring how the change should be implemented.

The Gambling Commission estimates that the UK remote gambling market is worth over £2bn (E2.33bn) per year. The new rules will bring in approximately £300m (E349m) per year in additional tax revenues.

Remote gambling operators with UK customers will be liable to pay either remote gaming duty, general betting duty or pool betting duty (depending on the type of gambling offered), all of which are currently at 15 per cent.

Economic Secretary to the Treasury, Sajid Javid, said: “It is unacceptable that gambling companies can avoid UK taxes by moving offshore, and the government is taking decisive action to ensure this can no longer happen in the future.

These reforms will ensure that remote gambling operators who have UK customers make a fair contribution to the public finances.”

GERMANY

ight months after it was announced that the largest city in North Rhine-Westphalia, Cologne, was to be allowed the state’s fifth casino, a location for the venue has still to be identified by the operator WestSpiel, according to reports.

There are certain minimum requirements WestSpiel wants: the property must be at least 6,000sq m with high ceilings and have the ability to accommodate technology and safety features. It has to be easily accessible by car with ample parking but be as close to the centre as possible.

Now the city is stepping in to help, with the Office of Economic Development and the Building Department pushing the matter and making preliminary examinations of potential locations, including in the historic Flora botanical gardens.

Despite a general lacklustre performance by casinos in Germany over the last five years, a casino in Cologne could buck the trend.

When the decision was announced, Mayor Jürgen Roters

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Jürgen Roters, mayor of Cologne

said: “I am convinced that Cologne, as the largest city in North RhineWestphalia, being a major attraction for visitors from both near and far, has the best conditions for a successful casino operation.”

In addition to its strong transport connections, Cologne is at the heart of one of the strongest economic regions in Europe with 17m people within a radius of 100km. There are four other casinos in the state at Aachen, Bad Oeynhausen, Dortmund-Hohensyburg and at Duisburg, which is the country’s most successful casino and has been almost since the day it opened its doors in 2007. Its location in what is otherwise a post-industrial and economically challenged city has not hindered its success. Its large, stylish and relaxed atmosphere has proven a popular attraction, pulling in players particularly from Düsseldorf 20km down the road.

The casino is expected to bring in revenues for the city of around E5m every year. “From the point of view of the city, the casino is a win,” said Roters.

VISITORS

Casinos brace themselves against loss of visitors GERMANY

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asinos in Germany are working hard to stem the haemorrhaging visitor numbers most have experienced in the last six or seven years. In Lower Saxony, Spielbanken Niedersachsen’s ten venues are banking on prize draws and poker tournaments to bring players in.

“Consumers’ leisure behaviour has changed, the number of visits and sales figures are not like they were a few years ago,” company spokeswoman Karen Kruger told the press.

After surviving the downturn for several years,

casinos are now having to cut their coats according to their cloth with about 100 jobs already lost in Hanover, Bad Zwischenahn and Bad Harzburg.

In the north-eastern state of Mecklenburg-West Pomerania, two casinos closed their doors permanently in early August after revenues plummeted.

In Bavaria, the state effectively has to subsidise several of the casinos.

Kruger said: “In Lower Saxony we remain very much in the market but our goal is to stabilise ourselves and increase guest and revenue numbers.”

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News Europe

Puerto de Tarragona hopes to deliver

BCN WORLD: WITH A LAUNCH DATE SET FOR 2016, CAN BCN’S DREAM BEAT EUROVEGAS TO THE FINISHING LINE? 5,000 LOCAL JOBS AND AN AILING SPANISH ECONOMY HOPE SO. INTEGRATED CASINO RESORT

EUROVEGAS

BCN World details to be released ‘in October’

Madrid business group supports Eurovegas

You wait ages for a Eurovegas, then two come along at once. BCN World, the great rival project in Catalonia to that of Las Vegas Sands in Madrid, will reveal detailed plans of the first phase in the autumn.

SPAIN SPAIN

etails about the first phase of the BCN World integrated casino resort project will be released by developer Veremonte on October 16, according to reports in the Spanish press.

The company has not confirmed dates finally but is scheduled to take part in the Jornada Gresol - ‘Crucible Day’, an annual event organised by the Gresol Foundation attended by business leaders from across the country - at which it is expected to reveal its and its partners plans.

Several of the sessions will discuss the economy and the difficulties it faces, but the lunchtime colloquium, a central part of the day, will be devoted to the future leisure and gaming macrocomplex at Costa Daurada and will be attended by the president of BCN World Xavier Adserà and the by the Catalonian minister for the economy and knowledge Andreu Mas-Colell.

Veremonte’s plans as already announced include attracting increased tourism from Asia, described as the “great unfinished business” for Tarragona province’s

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BCN World will dominate the area once it is built

coastal resorts. To that end, the company has formed a partnership with Melco Crown Entertainment, the operator of City of Dreams and Altira in Macau and with expanding interests in the Philippines, Primorye and Macau itself. Melco Crown has signed up to operate the casino in the first phase.

Other companies that have already signed up include the Meliá hotel chain and the retail management company Value Retail.

In total, the investment in first phase will amount to E766m: the consortium of Veremonte, Melco Crown, Meliá and Value Retail will contribute half with the remainder coming from financial institutions in Asia.

FINANCIALS PORTUGAL

Estoril revenues fall but profits up

he head of the Madrid chamber of commerce CEIM Arturo Fernández has described the Las Vegas Sands Eurovegas plan as the “the project of the century” in an interview with the Spanish news agency Efe. He said: “For Madrid and Spain, it will be a step change in terms of income and employment.”

Construction on the project in Alcorcón to the south-west of the city of Madrid has yet to start as certain matters, including the partial overturn of the smoking ban, have yet to be satisfied. Smoking remains a controversial subject, however, Fernández supports its amendment. “When you have large projects, there are always issues,” he said.

Madrid is one of three candidate cities to host the 2020 Olympic Games but according to bookmakers is trailing Tokyo and Istanbul; the announcement of the winner will be made on September 7. The nuclear accident in Fukushima could yet put a hole in Tokyo’s ambitions and the recent political upheaval in Istanbul has not helped its case. The Eurovegas project could be a significant help for Madrid’s case, expanding dramatically the number of hotel rooms available in the city.

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aming revenues at Portuguese operator Estoril fell 3.5 per cent in the first six months of the year to E88m, the company has reported.

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This first phase on a 30hectare site, to be called BCN Dream, will feature a casino, a 1,100-room hotel that will expand to 3,000 rooms, a shopping mall and theatre. It will also offer 900 apartments to be built as they are sold. In all, around 5,000 new direct jobs will be created.

The developers expect that it will open some time in 2016.

The China-themed resort is the first of six planned for the entire project, all with a geographical inspiration. The others will have themes arising from America, Brazil, Russia and the Middle East. Each will feature a casino plus hotels offering 2,000 rooms. It will incorporate already exist-

ing golf courses and the beach. The total investment in the project could reach E4.5bn, attracting 10m visitors annually and employing 20,000 people directly and another 20,000 indirectly.

The BCN World project stepped in and stemmed the disappointment arising from the decision by Las Vegas Sands to choose Madrid over Barcelona for its Eurovegas. The Catalonian government is firmly behind the BCN World plan and is offering similar terms to those agreed during the drawn-out negotiations with LVS: gaming tax will be fixed at ten per cent, down from the current 55 per cent, and will apply across the region.

At Casino Lisboa, which by itself accounts four 44 per cent of revenues, takings were down five per cent to E38.9m, while at Casino da Póvoa they were down ten per cent to E17.8m.

These figures, however, were partially offset by a

three per cent rise in gaming at Casino Estoril.

Consolidated group revenues were down four per cent to E90.1m.

The company’s performance was better than the national average, which saw gaming revenues in the first half fall

Arturo Fernández of CEIM, the Madrid chamber of commerce

5.2 per cent to E134.2m.

In a statement it said: “Successive falls in the disposable income of families has been in seen in recent years, which has already prompted adjustments to the cost structure of our operating companies, especially in

the last year.”

The savings saw the company post an increase in operating profit of four per cent to E5m, and an improvement in net profit compared to the previous year of 28.6 per cent to E0.9m.

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GRAND CASINO BADEN: “WE ARE, IN MY VIEW, ON THE RIGHT TRACK ... WE ARE HITTING OUR BUDGETS AND TARGETS AND SHOULD MAKE A HEALTHY PROFIT.” CEO DETLEF BROSE CASINO LICENCE Despite lower revenues and fewer visitors, Grand Casino Baden expects to remain profitable this year

Novomatic retains Upper Austria licence AUSTRIA

T

PERFORMANCE

GC Baden remains steadfast in face of Zürich opening Although footfall and revenues are down dramatically, Switzerland’s Grand Casino Baden is taking the increased competition from Zürich in its stride. The company is also broadening its business base with ambitious projects and partnerships abroad.

SWITZERLAND

rand Casino Baden has lost about a third of its revenues and a quarter of its visitors since the opening of Swiss Casinos Zürich last October.

Despite this CEO Detlef Brose, speaking to the Schweizer NebenwerteNachricten (Swiss Small Cap News) website, said he is “satisfied with the development of 2013 so far”.

He added that the effect of the new casino opening 25km away in Switzerland’s largest city was expected.

“Relatively speaking, it [2013] could even be described as a success, as we’re expected to remain the third largest casino in

G

CEO Detlef Brose

Switzerland. I’m confident we will achieve this goal.”

The fact that the number of visitors has fallen less steeply than revenues is a cause for optimism, according to Brose. “We do feel it, however, especially in the late evening hours.”

10 | casinoreview September 2013

He continued: “Our aim is to achieve gross gaming revenue of 70m francs. We are, in my view, on the right track. We have already undertaken an early restructuring and refurbishment of the casino, which took place in 2012.”

The target GGR for 2013 would see the fall in revenues pulled back to about quarter from the 94m francs the casino generated in 2012. That itself was 9.5 per cent down on the 2011.

“Our results are still very good, even if we are seeing declines,” said Brose. “We are hitting our budgets and targets and should make a healthy profit. The holding company can expect a good return.”

The parent, Stadtcasino Baden is also spreading its wings: it has made a bid for one of the three solo casino licences being offered in Austria, in partnership with the Gauselmann Group. The licence for Vienna south-west - right in heart of the city - is the most contested of all the concessions being offered in Austria, with four bidders in all.

Stadtcasino Baden and Gauselmann have perhaps the most eye-catching proposal; they want to put a casino in the disused Palais Schwarzenberg.

The imposing historic building has been empty for some time and plans from 2007 to develop it into a luxury hotel foundered.

The 28-table, 290-machine

casino would be located in the elegant state rooms of the palace with the wings used as hotels. There is ample parking.

Brose said: “For the Vienna location we and our German partners Gauselmann have been able to present a convincing concession bid within the shortest possible time. I think we’ve got a good chance.”

He continued: “In Germany we are also implementing with Gauselmann two casinos in Magdeburg and Gunthersdorf for which we have won the concession. However, in Liechtenstein the outcome of our project bid, which we initially won, has yet to be resolved by the courts.”

he Independent Administrative Senate (IAS) of Upper Austria has dismissed appeals against the award of three gaming arcade operating licences in the state to Novomatic, Grazer PA and Excellent Entertainment. Novomatic holds 50 per cent of Grazer PA’s parent, one of the reasons four unsuccessful candidates lodged the appeal, including Amatic and a subsidiary of Gauselmann Group. However, the IAS reduced the concession period from 15 to ten years to allow, it said, an effective response if a concession proves unreliable.

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CASINO LOUTRAKI: “THE ONLY PROSPECT FOR THE SALVATION OF THE COMPANY IS ITS CONVERSION TO AN SA ... [WHICH WILL] CONTRIBUTE TO AN INCREASE IN PROFITS.”

GREECE

The loss-making Club Hotel Casino Loutraki has acted on an ultimatum to the town to cease certain payments.

Its staff have been left short after August and the casino is in danger of breaching its operating licences in such a way that the government may be forced to close it.

PERFORMANCE

Loutraki on the brink as underpaid staff strike lub Hotel Casino Loutraki (CHCL), once Europe’s leading casino in terms of revenue, paid its staff only 70 per cent of their August salaries on September 4 with a promise to pay the remainder by September 20 only if all goes well, International Casino Review has learned.

The company said its cash holdings and cashflow did not allow it to meet its salary commitments and asked for the staff to be patient.

The unions, however, called an immediate four-hour

C

Mayor of Loutraki Konstantino Logotheti

strike to protest the move and called a 24-hour strike for Saturday September 7.

The casino under its current ownership is facing what could be its final days a month after its manager issued an ultimatum to the local authority shareholder partners that cannot be met.

With it suffering acutely from the effects of the economic crisis, the resort’s Nikolaos Remandas wrote to the mayor of Loutraki Konstantino Logotheti on August 6 asking for CHCL to be allowed to become a public limited

company (SA) with the ability to make a rights issue in order to increase its capital.

In his letter Remandas said: “The only prospect for the salvation of the company is its conversion to an SA, which will, in addition to increasing its capital so as to cover its accumulated obligations, allow it simultaneously to develop relevant business activities that will contribute to an increase in profits.”

In 2012, gaming revenues fell 28 per cent to E94.9m and CHCL made an EBITDA

loss of E4.7m, compared to a loss of E0.6m a year earlier. At its peak in 2007, annual gaming revenues were more than E275m and EBITDA E91.6m.

CHCL is currently owned 86 per cent by a consortium of private shareholders led

by Moshe Bublil’s Club Hotels International and Yighal Zilkha’s Queenco (both Israeli companies), and 14 per cent by the municipality.

The town, however, is prevented by law from owning shares in an SA, a fact well

known by CHCL’s owners.

Even if it could, the town does not have the money to be able to take part in a rights issues and would therefore see its holding diminished, something it is unwilling to contemplate.

According to a knowledgeable source, if CHCL does not get its way it has said it may no longer make tax, VAT or social security payments to the town or the national treasury from August, which will put it openly in contravention of its various operating licences and could mean a forcible closure. The resort has also said that payments to local suppliers, according to our source, could be impacted; several are already dealing with unpaid accounts and operating on a cash-only basis reportedly.

Mayor Logotheti held a public meeting not long after receiving the letter in which he defied the threats from the controllers of the company.

He said: “This is a municipal property and we will not allow any business interest to harm it.”

Questions have been asked in the town as to why when the principal shareholders have taken so much out of the business during the good times, they are not willing to pump more back in during the bad. Logotheti noted that more than E3bn in revenues had been generated by the casino in its 17 years of operation.

PROFILE

BUDGETS

Ravà contests rival claims

Actions bring results, Pagan tells workers ITALY

ITALY

T

he increasingly frequent claims by Carlo Pagan of Casinò di Campione that his venue is now the leading casino in Italy have been disputed by Vittorio Ravà (pictured), CEO of Casinò di Venezia. He told the Gazzetina newspaper that the turnover figures of a casino can be calculated in many ways: “The important thing is that they are natural, that there is honesty rather than fake results that lead companies to the brink. The rest of the Italian casinos actually have disastrous accounts: they are losing money because they have not done the restructuring we have in Venice.”

12 | casinoreview September 2013

he CEO of Casinò di Campione Carlo Pagan has told workers that their sacrifices and contributions to the remediation of the business are bringing about the desired results and helping to stabilise revenues.

He was speaking to a gathering of around 200 workers at the casino on August 28, a week after a

T

strike was called then postponed by unions unhappy at a reduction in tips arising, they say, from poor management of the table games.

Pagan said that revenues in the first half of the year were “broadly in line with the business plan” and even showed “slight improvement” with an operating EBITDA margin of close to 30 pc.

He said: “These results are the fruit of absolutely extraordinary interventions

instituted in the business.

Among the actions taken is the project to encourage the Chinese segment.”

Turning to the management of the games, Pagan described the poker division as “exemplary”. He added: “A stronger focus on games such as punto banco and blackjack has proven profitable with an increase in revenues in those games of 50 per cent and an increase in tips of five per cent.”

Carlo Pagan, CEO of Casinò di Campione

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Marseille Casino: to be or not to be?

MARSEILLE: YOU CAN BID BUT YOU MIGHT NOT WIN. CAN THE POLITICAL FOOTBALL WHICH SURROUNDS A CASINO IN MARSEILLE STOP SCORING OWN GOALS. CASINO BID

OPENING

Bid process for Marseille to start in January

Casteljaloux temporary casino to open soon

Marseille could soon be home to a fancy new casino, if the politicians can find their way to stop passing the gaming football back to the ‘keeper project and to refurbish the historic Belle de Mai barracks.

However, the city council and the long-anticipated call for bids mayor are facing elections in March to operate a casino in France’s next year. The 73-year-old Gaudin, a second largest city Marseille senior figure in the right-leaning UMP will go out in January, the city’s mayor party, has been mayor of Marseille Jean-Claude Gaudin has announced. since 1995 having been re-elected The necessary ordinances will go twice, but demographic and political before the city council in December shifts mean the political weather in and will include not only the casino the city is difficult to gauge. Even but also proposals to reinvigorate the though he has not been an enthusiasEuromediterranée redevelopment tic supporter of casinos in the past, he FRANCE

A

Jean-Claude Gaudin, mayor of Marseille

has at last been persuaded enough to proceed. Marseille is a plum location with a population of 850,000 and would offer the largest potential locals market in France.

However, there is no guarantee that even once the tender is launched, it would come to fruition: the announcement of the bid winner would not be made until March 2015, and an even less enthusiastic future mayor could terminate the whole process with ease.

FRANCE

L

ess than four months after construction began, the temporary casino at Casteljaloux, Lot-etGaronne, south-west France is to open in midOctober. The 400sq m, E400,000 venue will house 50 gaming

machines plus a few gaming tables.

Construction on the permanent E6m, 1,350sq m lakeside casino at Terrasses du Lac is just now underway with completion set for autumn 2014. The casino will be operated

by Groupe Arevian, which has six other casinos across the country.

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September 2013 casinoreview

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GRAND HOTEL ADRIATIC: “THIS IS A HOTEL WITH INCREDIBLE POTENTIAL. WE HAVE IN PLACE PLANS TO INCREASE THE EBITDA BY 380 PER CENT BY 2018.” RUDI GRBEC LIFECLASS

PROPERTY

LEGISLATION

LifeClass puts Grand Hotel Adriatic up for sale

Cyprus casino bill to go to parliament in September CYPRUS

C

Casino Adriatic Contact Details Jacqueline Stuart js@sloveniainvest.eu T: +386 (0)41 251646 The Grand Hotel Adriatic in Opatija

With MICE business set to rise following Croatia’s accession to the EU in July, the Grand Hotel Adriatic and the Casino Adriatic is keen to develop its year-round potential. Its current owner wants to concentrate on developing its business in Slovenia and has put the resort up for sale.

COATIA

ituated at the northern-most point of the Adriatic, Opatija in Croatia, newly acceded to the EU, has a long history as a resort town popular with Italians: now its largest hotel and one of two casinos the Grand Hotel Adriatic is up for sale.

The Casino Adriatic within the building offers ten tables of live games plus live poker and 90 new generation slot machines.

It also offers a terrace with panoramic views of the sea, where guests can dine and play under the stars.

S

A casino licence in Croatia offers the holder the opportunity to open additional gaming outlets in other locations, so it could be an ideal springboard for a gaming operator wanting a foothold in central-eastern Europe.

Opatija is particularly popular with Italian gamblers, appreciate the Croatian hospitality and the more relaxed gaming laws. Currently held by LifeClass, the operating company and hotel property is available with vacant possession or with a management contract in place for a guide price of E11m.

The 307-room hotel was built in 1963. General

14 | casinoreview September 2013

manager Milan Mirjani said: “This is a hotel with incredible potential. We have plans in place to increase the EBITDA by 380 per cent by 2018, by increasing the number of three- and four-bed rooms to accommodate increasing demand from families, upgrading the beach club and conference centre, and relocating the casino operations to a central area within the hotel. We went through a restructure last year, and the hotel is very profitable we believe now is the time to take the resort to the next level.”

Rudi Grbec, president of LifeClass, added: “We

will be sorry to say goodbye to the Grand Hotel Adriatic, particularly at this pivotal point in Croatia’s history. We saw significant uplift in arrivals and MICE business in our Slovenia hotels when the country acceded to the EU in 2004, and we see no reason to believe that things will be any different in Croatia… Unfortunately for us, our core business is in Slovenia, and the Croatia property has always been more difficult for us to manage at a distance, so we have taken the decision to dispose of the asset and invest in further developing our Slovene properties.”

The company handling the sale is S-Invest based in Ljubljana, Slovenia.

Director Jacqueline Stuart said: “Quality hotels in Croatia are very difficult to find at the right price. Much of the country is afflicted by extreme seasonality, there are few places like Opatija that benefit from average annual occupancy of over 60 per cent.

It is also very hard to find properties with scale…

The Grand Hotel Adriatic has multi level appeal, as a resort, MICE venue, and gaming facility. The guide price at E11m is attractive, representing over ten per cent yield.”

yprus’s plans for a sole integrated casino resort on the island are progressing quickly with a draft bill currently before ministers and certain MPs before it is tabled in September.

Under the bill, a National Casino Authority (NCA) would be established as the regulator and appointed by the Cabinet one month after the law comes into effect. The NCA will have a board comprising one president and four other members and will manage the licensing, supervision and control of the operation of the casino. The president of the authority must be an independent person of integrity and honesty, a holder of a university degree in law, economics or trade with at least 12 years of professional experience. The remaining members will be a representative each of the Finance Ministry and the Justice Ministry and two individuals from the private sector with specialised knowledge. The authority will have a three-year term, with the possibility of renewal for another two. The Cabinet will have the authority, under certain conditions, to sack any member of the authority.

The casino operator will be licensed for ten years and must be a company registered in Cyprus and have a bank guarantee from a Cypriot or European bank. Tax will be paid monthly, although the rate has not yet been set. The licence will be exclusive for ten years.

Those operating a casino illegally will risk ten years in jail and/or a fine of up to E1m.

Operating a game of chance in violation of the law will a penalty of up to five years in jail or a fine of 500,000 or both.

The draft bill also gives the chief of police the right to prohibit entry to the casino to individuals. Minors are strictly prohibited from entering.

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Asia & Oceania

RESORT PROJECT

Massive casino hotel complex planned for Queensland AUSTRALIA

The proposed $4.2bn Aquis Great Barrier Reef hotel and casino resort would demonstrate Queensland’s comm construction, Aquis chairman Tony Fung has said.

C

hinese billionaire Tony Fung’s plans for a A$4.2bn (E2.8bn) hotel and casino project in Australia, called the Aquis Resort at the Great Barrier Reef, is being fasttracked for approval by the Australian government.

The resort complex, currently under consideration by the state of Queensland, would include a casino, nine luxury hotels with a total 3,750 rooms, as well as one of the largest aquariums in the world. The project has been granted “co-ordinated project” status, meaning its applications for environmental, social and licensing requirements will be coordinated rather than handled separately by different departments.

16 | casinoreview September 2013

In an open letter to the people of Cairns and Queensland, Fung said his company’s September 2012 acquisition of an option on the 750-acre site at Yorkey’s Knob north of Cairns laid the base for the implementation of his vision for “a fully integrated resort that fundamentally changes the economy of Cairns and Queensland”.

He said: “For the last nine months, my advisory team has been undertaking the necessary work to determine the viability of my vision and prepare a proposal for the consideration of the Queensland Government. My commitment to Aquis, and belief in the opportunity it presents, has

been strengthened and fortified as that work has been completed.”

Fung said the proposal provides the Queensland Government with the opportunity to further demonstrate its commitment to two of Queensland’s economic pillars - tourism and construction - and pitched the complex as an attraction that will bring increased tourism to North Queensland, particularly from China. “Facilities of the like of Aquis Resort at the Great Barrier Reef don’t only attract the Chinese massmarket middle-class,” he said, “but also the big-spending, high-value, everexpanding Chinese upper-class.

“The Aquis proposal is unique, in Asian integrated resort terms, by associating its appeal to the unique natural environment and region it is located in. Aquis will be, by its very design and market position, a high profile project to drive Asian tourism awareness of North Queensland and the Great Barrier Reef.”

As well as attracting international visitors, Fung said Aquis will also play an important role for the Queensland economy by increasing employment opportunities for Queenslanders from as early as next year; increasing economic expenditure and investment in Queensland; increasing state revenue and improving

the state’s finances; providing a wonderful facility for locals and domestic tourists; and driving international and domestic tourism visitation and expenditure for the benefit of all small business operators in North Queensland.

While Australia’s own billionaire developer James Packer is already working on plans to draw more Asian tourism to the country with a high-roller casino and sixstar hotel complex in Sydney, and to expand and upgrade the Burswood Casino in Perth, Fung’s company is claiming that Aquis will be “Australia’s only genuine, world-class, integrated resort”.

The Aquis complex, to be

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AUSTRALIA / INDIA / MACAU / NEW ZEALAND / SAMOA / SINGAPORE / SOUTH KOREA Tony Fung, chairman of Aquis

AQUIS: “THE AQUIS PROPOSAL IS UNIQUE, IN ASIAN INTEGRATED RESORT TERMS, BY ASSOCIATING ITS APPEAL TO THE UNIQUE NATURAL ENVIRONMENT AND REGION IT IS LOCATED IN.” LEGAL Aquis at the Great Barrier Reef has government backing and could provide a major boost to the economy

Crown’s Perth plan heads to the courts AUSTRALIA

C

rown’s intended A$570m (E385m) development of the Burswood Casino in Perth into a six-star resort could face judicial proceedings after the Western Australia Supreme Court ruled that local residents may have a case over the sale of land by the government to the company. Under the 1985 Casino Agreement Act, Crown is not obliged to lodge plans with the local authorities, however, the judge Master Craig Sanderson, ruled that residents “in the interests of justice” should have access to the terms of the agreement in order to decide whether to continue their claim or not.

sland’s commitment to its two economic pillars, tourism and located about eight miles north of the city of Cairns, is to include 1,200 apartments, 135 villas, high-end shopping, cinemas, a large reef lagoon, 18 holes of golf, a convention centre and a sports stadium that can sit 25,000 people.

Aquis is expected to employ 10,000 people once operational in 2018, and will create 9,300 construction jobs in the meantime.

Advance Cairns leader Mark Matthews told a local Cairns newspaper that “Tony Fung is keen to make sure it is done properly environmentally, socially, and to the benefit of the whole region… This has not happened overnight, it is part of a broader investment confi-

dence in the north.”

Fung told The Cairns Post that most of the environmental concerns raised by the public could be answered in the proposal to the State Government. He said: “We’re doing whatever we can to engage the community, inform and deliver feedback so we know what all the questions and concerns are and make everyone comfortable.”

Fung said the company would continue to use social media to connect with the community. “Whatever the vehicle may be, through the internet or through the galleries we’ve set up, we’ll do whatever we can do to engage the community, inform and deliver feedback

so we know what all the questions and concerns are.”

He added that his engineers were “hard at work” putting together the environmental impact statement. “We’re hoping everything can be done promptly.”

In his letter to the people of Cairns and Queensland, Fung said: “At this stage, it is the stated intent (working in partnership with the Queensland Government, the local authorities, community and other stakeholders) of the Aquis consortia, after an appropriate approval and licensing process, to commence significant site works in mid 2014, with project completion slated for 2018.”

AUSTRALASIAN ROUND UP ustralia’s Coalition has announced that it will abolish Australia’s national gambling regulator if it wins power and instead set up an advisory council which would be comprised of representatives of the gaming industry. The Coalition has said that it would replace the regulator with an advisory council featuring gaming industry representatives.

Crown, meanwhile, said its strategic move to sell a stake in a rival Australian gaming company and go all-in on plans for a new Sydney casino had hurt its annual profit. Net profit for the year to June 30 fell by 23 per cent to A$395.8m (E271m) and included a A$99.4m (E68m) loss on the sale of Crown’s interest in Echo Entertainment Group. Crown had amassed a 10 per cent stake in the operator of The Star, Sydney’s only casino, in case lawmakers didn’t approve its request to build a second gambling house in Australia’s most populous city.

In May, Crown sold its Echo stake for about A$264m (E180.8m), just weeks before

A

the government of New South Wales state backed its plan, which involves building a VIP-only casino at Sydney’s Barangaroo precinct that will compete with The Star for Asia’s burgeoning high-roller population.

In New Zealand, a Chinese woman at the centre of a betting racket at Hamilton’s SkyCity Casino that netted more than $50,000 (E29,600) is to be deported. Xiao Dong Lu, 28, and Zhou Zhao, 32, were found guilty in the Hamilton District Court in June on charges of deception which stemmed from the pair working in collusion with a rapid roulette table game dealer.

Approval for a VIP smoking area at Auckland’s SkyCity casino has prompted a High Court challenge over testing methods. Lawyers for the Cancer Society, Problem Gambling Foundation and Salvation Army have taken the Ministry of Health to court over its so-called ‘open areas calculator’ - used to determine whether a smoking space meets legislation. If successful, their action could change the way smoking areas are approved.

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ASIA & OCEANIA NEWS: EMAIL JAMES WALKER • JW@SJC.CO.UK

Asia & Oceania

GALAXY ENTERTAINMENT: “LOOKING INTO THE FUTURE, MACAU’S PROSPECTS FOR THE REMAINDER OF 2013 AND BEYOND CONTINUE TO BE BRIGHT.” CHAIRMAN LUI CHEWOO

FORECAST

Growing Galaxy keeps an eye on the future After another record half-year, Galaxy Entertainment is confident in its current business, content with the progress of its construction projects and with its recent acquisition of Grand Waldo ambitious about the future.

MACAU

alaxy Entertainment Group (GEG) is gaining in confidence and influence, with strong levels of organic growth, plus acquisitions along the way. In the first half of the year, the company reported revenues of HK$30.8bn (E3bn) and an adjusted EBITDA of HK$5.8bn (E565.1m), increases of nine and 23 per cent respectively.

The record period resulted in a net profit attributable to shareholders of HK$4.6bn (E448.2m), up 35 per cent on the previous year.

The mass-market segment again recorded the fastest growth with net win at the main floor tables in Galaxy Macau ris-

G

ing 45 per cent to $4.8bn (E467.6m). StarWorld Macau also performed excellently, with net rising 50 per cent to $1.7bn (E165.6m). The company said VIP performance at both properties were “solid”.

On May 15, GEG announced the $3.25bn (E316.6m) Grand Waldo Complex on the Cotai Strip, next to Galaxy Macau and the company’s land bank in the district. The Grand Waldo did not really make a huge impact on the market under its former owners Get Nice Holdings. For GEG, however, it represents a huge opportunity.

The company said: “The Grand Waldo Complex is strategically important to GEG for continuing its development pipeline.”

The deal was completed in July.

18 | casinoreview September 2013

Galaxy chairman Lui Chewoo said: “We are very pleased to report improving financial results across the business and that Phase 2 of Galaxy Macau remains on schedule… We also strengthened our balance sheet by prepaying a significant portion of our bank borrowings. I am particularly delighted that the half-year culminated in the group being included as a constituent of the Hang Seng Index.”

He continued: “Looking into the future, Macau’s prospects for the remainder of 2013 and beyond continue to be bright.

We believe that our development pipeline for Phases 2, 3 and 4 plus the Grand Waldo Complex on Cotai position us well for growth.”

The company said that con-

struction of the 450,000sq m Phase 2 expansion in addition to being on schedule is also on budget. It expects to complete the project by the middle of 2015.

It added: “Planning for Phases and 3 and 4 is almost finalised and construction [is] targeted to commence by the end of 2013/ early 2014.”

The project will double the footprint of the first two phases and is target to complete in stages between 2016-2018.

Phases 3 and 4 will consist of a 10,000-seat arena, a 50,000-sq m convention centre for up to 5,000 guests as well as 5,500 luxury hotel rooms and suites. The company expects it to prove instrumental in securing share of new visitors for the group and Macau itself.

VISITORS

More visiting Macau in 2013 MACAU

M

acau received 16.7m visitors between January and July - an increase of 4.3 per cent on last year, the region’s Statistics and Census Bureau has reported. In July alone, almost 2.6m visitors arrived in Macau, which was a year-on-year increase of 4.9 per cent, with visitors from mainland China rising 14 per cent to just under 1.7m. The number of visitors from South Korea (38,400) and the Philippines (18,800) were up 6.6 per cent and 0.9 per cent respectively.

Š SPIELO International, 2013

www.spielo.com

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News

ASIA & OCEANIA NEWS: EMAIL JAMES WALKER • JW@SJC.CO.UK

Asia & Oceania

MELCO CROWN: “MACAU CONTINUES TO DELIVER ROBUST GROWTH ACROSS ALL GAMING SEGMENTS IN 2013, HIGHLIGHTING ... THE RAPIDLY EVOLVING ASIAN CONSUMER.” BUSINESS P74 OFFSHORE

ILLEGAL GAMING SkyCity Hamilton where the fraud was perpetrated

Hamilton casino cheats sentenced received five months’ home detention and ordered to pay reparation of NZ$13,000 fter being convicted of (E7,600), while Lu - a non-resicheating SkyCity Casino in dent who will be deported before Hamilton, New Zealand serving her sentence - was out of thousands of dollars, Lu ordered to pay $4,000 (E2,350) Xiao Dong and Zhao Zhou have reparation and undertake 350 been sentenced in the Hamilton hours’ community work. Each District Court. was found guilty in May on New-Zealand resident Zhao charges of deception after col-

“Insider trading” allegations in Goa INDIA

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NEW ZEALAND

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luding in a past posting scam with Du Bo, who was sentenced in January to nine months’ home detention and reparation of $20,000 (E11,750), to defraud the casino of $52,000 (E30,500).

The Department of Internal Affairs was called in after the

casino discovered irregularities with the rapid roulette game. Alison Barrett, acting director Gambling Compliance, commented: “These convictions show that if you try and cheat in a casino in New Zealand you will be caught.”

LICENCE

Samoa considering casino development alternatives SAMOA

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he island nation of Samoa in the South Pacific is considering reopening a public tender for a casino licence after it stopped negotiations with the China Exhibitions Tourism Group (ETG), the chairman of which is facing corruption charges in China.

According to reports, Deng Hong is being investigated by the Communist Party over suspicious land deals in his home country. As a result the Samoan government with-

drew the licence in early August.

Robbie Kearney, chief executive of the Samoa Gambling Control Authority, commented: “We need to make a decision about whether we go back to the market for the licence or whether we just continue on with one licence given to a local. We may want to go back to the market straight away.

In 2010, the government - in the teeth of opposition from religious leaders - passed legislation allowing two casinos to be licensed as a way to generate funds to help it recover

ASIA ROUND UP n a surprise twist, the government of Vietnam has given the green light for locals to enter one of the country’s casinos for a trial period. The Communist Party’s decision-making Politburo has allowed Vietnamese meeting certain criteria to gamble in a casino to be built in the Van Don Economic Zone in Quang Ninh Province bordering China, deputy speaker of the National Assembly, Nguyen Thi Kim Ngan,

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20 | casinoreview September 2013

aving recently stated he wants to see the end of the offshore and onshore casino industry in Goa, the region’s chief minister Manohar Parrikar of the BJP has been accused by the Congress party of “insider trading” relating to Delta Corp, the promoter of the offshore Casino Horseshoe.

At a press conference in August, Congress spokesman Reginaldo Lourenco alleged that despite an air of uncertainty and controversy over granting a licence to Casino Horseshoe, the Goa government had a hidden understanding with Delta Corp to allow it to operate.

He said: “Both Delta Corp and Parrikar knew that the licence would be given. Delta Corp only utilised the confusion to manipulate the stock market, caused by the air of indecision created by the government. According to the information we have, 4.31bn rupees (E48.8m) was made by the promoters of the company in the last one month alone because of insider trading.”

Casino Horseshoe dropped anchor in the Mandovi river a few weeks ago as a replacement for an existing vessel, however the opposition said it should have had a new licence as licences are not transferable.

Both Delta Corp and Parrikar have described the allegations as “baseless”.

from a tsunami in 2009 that wiped a third off the economy.

It was also hit by a cyclone in 2012 and saw tourist revenues tumble in the wake of the financial crisis.

One casino licence was awarded to a local hotel operator Aggie Grey’s and the other to ETG, which had planned a 500-room hotel in addition to the casino. It was to have paid 15 per cent of gross gaming revenue to the government on top of a licence fee of The country’s 190,000strong population is predominantly conservative and Christian, leading to powerful

said at a meeting of the house Standing Committee held August 15 to debate a bill on betting and gambling.

As Vietnam relaxes its gaming laws, Singapore is planning to tighten rules for public servants who wish to visit the citystate’s two casinos following a handful of corruption charges against government officials in the past year. Civil servants who go to the gaming halls frequently or those who buy annual passes will be required to declare such visits, Teo Chee Hean, Singapore’s deputy prime minister. The city has a S$100 (E59.5) daily levy or S$2,000

opposition to casino gaming.

Religious leaders and opposition lawmakers have warned casinos will cause social problems in the conservative Christian-dominated country, which moved the international dateline east to align its time zone with the bigger economies of Australia and New Zealand in 2011.

Under the ETG licence, 15 percent of gaming revenue was to be paid to the government on top of a licence fee of US$150,000 (E113,400). It would also have opened open the way for direct flights from China to Samoa.

(E1,190) annual tax for citizens and permanent residents entering the casinos.

Staying in Singapore, the first casino debt collection case in the state has resulted in a win for Marina Bay Sands (MBS), which means it can recover the S$240,000 (E142,700) it extended as credit to a patron.

Lester Ong Boon Lin, 33, had contested MBS’ claim, arguing that the debt was not

Chief minister of Goa, Manohar Parrikar

recoverable as he was not a “premium player” under the law and that MBS breached casino regulations in giving him credit. But in a 30-page judgment released in August, High Court Judge Lai Siu Chiu held that Ong was a premium player and MBS had complied with the rules.

In South Korea, Intralot’s Korean lottery consortium Nanum Lotto has been awarded a licence to operate the country’s National Lottery by the Korea Lottery Commission (KLC). The duration of the license awarded is five years and the newly developed localised system will launch in December.

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Africa & Middle East

SOUTH AFRICA

GrandWest by far the biggest earner in Sun’s portfolio

South Africa’s and Africa’s largest casino operator Sun International’s revenues and profits may be up, but it is concerned about a second-half slowdown at certain important venues.

FINANCIALS

It’s a year of two halves for Sun after encouraging start stalls

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un International has reported full year revenues to the end of June of R10.27bn (E750.5m) up eight per cent on 2011/12.

However, the company said that after an encouraging start to the year, trading slowed with gaming revenues rising only three per cent in the second half compared to seven per cent in first.

EBITDA at R2.95bn (E215.8m) was 11 per cent higher than last year, with the EBITDA margin increasing from 27.8 per cent to 28.6 per cent. Operating profit was up 11 per cent to R.1.9bn (E138.5m).

Sun International

22 | casinoreview September 2013

recorded a total comprehensive profit for the year of R1.57bn (E115.1m), up 42 per cent, and declared a gross dividend for the second half of 155 cents (E0.11), five cents more than in 2011/12, bringing the total dividend year up to 265 cents (E0.19), up ten per cent.

Sun’s revenues from Monticello Grand Casino were significantly affected by the introduction of the smoking ban in Chile in March. The casino is the second biggest earner in the whole group and generated about 15 per cent of the company’s revenues and 7.5 of its net profit last year.

However, the weakening rand protected Sun International against a fall in revenues from Chile since the ban, with revenue in rands down by two per cent, while revenue in pesos was down 21 per cents. Over the course of the year, Monticello’s revenues were flat in pesos but added 18 per cent in rands to the company accounts.

In South Africa, the GrandWest near Cape Town saw its revenues rise five per cent to R1.87bn (E136.3m) for an EBITDA up six per cent to R789m (E57.6m). EBITDA margin, due to new cost controls, rose to 42.3 per cent from

41.9 per cent a year earlier.

The Western Cape government announced a two per cent tax hike in its budget earlier this year but as yet it has not been imposed.

At Carnival City, revenues slowed one per cent in the second half compared to a ten per cent rise in the first half. Over the whole year revenue was up four per cent to R1.06bn (E77.5m) with EBITDA up six per cent to R316m (E23.1m).

The Morula Casino, which Sun will close in the hope of being able to transfer the licence to a more central location in Tshwane, saw its revenues

continue to fall, in the year just gone by more than seven per cent, with EBITDA down 20 per cent to R28m (E2m). It was the only Sun casino in South Africa to see its revenues decline.

The company’s other casinos in Africa (Nigeria, Zambia, Botswana, Swaziland, Lesotho and Namibia) saw their combined revenues rise 8.6 per cent to R948m (E69.3m), with each territory reporting growth in rand terms. Combined EBITDA of R174m (E12.7m) was up 64 per cent and EBITDA margin up from 12.1 per cent to 18.4 per cent.

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AFRICA & MIDDLE EAST NEWS: EMAIL JAMES WALKER • JW@SJC.CO.UK Mpumalanga Gambling Board invite applications

MPUMALANGA CASINO PROPOSAL: “APPLICATIONS [SHOULD] INTEGRATE THE PROPOSED CASINO WITHIN A RESORT STYLE DEVELOPMENT AND STIMULATE TOURISM.” SECTORS & SERVICES 80-83 M&A

Grand Parade starts then ends Peermont talks

Resort casinos for Zimbabwe?

SOUTH AFRICA

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rand Parade Investments, the LPM arcade operator that also holds just over a quarter interest in the GrandWest and Golden Valley casinos plus a small stake in Sibaya, confirmed on August 20 that it had been in advanced negotiations with Peermont Global over a complete or partial merger or acquisition.

On August 30, however, Grand Parade announced its withdrawal.

In a statement, it said: “Negotiations with Peermont Global Ltd have been terminated as parties were unable to agree mutually acceptable terms.”

Peermont, which is struggling to service a debt burden of around R10bn (E730m) from private equity deal six years, operates 16 hotels and 10 casinos in South Africa and Botswana.

Grand Parade is the much smaller company with a market capitalisation of just R1.8bn (E131.4m) and analysts considered the company would be punching well above its weight if it tried a full acquisition. The more likely scenario was that it was trying to gain an influential share, possible through an equity for debt swap.

ZIMBABWE

he Zimbabwean tourism minister Walter Mzembi has said the government wants to create a US$300m (E226m) theme park in Victoria Falls, that would house what he described as “Disneyland in Africa” as well as shopping malls, banks, exhibition

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centres and casinos in an economic free zone.

“We have reserved 1,200 hectares of land near the Victoria Falls International Airport to construct hotels and convention centres.”

Said Mzembi adding that the government is also planning to expand the town’s airport to provide easy access to larger aircraft.

RELOCATION

Sun’s proposed Pretoria move upsets residents ning application mentioned only “a theatre and a hotel, with the casino mentioned only in an application un International’s plan to close submitted later”. the Morula Sun casino north The casino would be part of a west of the South African cap- much larger complex including an ital Pretoria/Tshwane and transfer 8,000-seat concert hall, shopping the licence to a new casino at the mall, restaurants and hotel. One of Time Square development in Menlyn the residents’ complaints is that the Maine, an upmarket eastern suburb, casino is next door to a high school, has prompted complaints and poten- separated only “by a band of trees” tial legal action by residents. and that alcohol would be on sale.

Several residents’ associations Sun’s CEO Graeme Stephens have joined to form an action group. countered that alcohol was already They say they had insufficient warn- sold in the bars and restaurants and ing that a casino was likely to be built would also be sold in the hotel. He on the site because an earlier plan- added: “We do not encourage people SOUTH AFRICA

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to drink in the casino.”

He noted also that there are a large number of illegal limited payout machines in the area, while the casino would be the only one in the Tshwane Metropolitan Municipality and that it would provide a large number of jobs.

Explaining the rationale behind the proposed move, Stephens told MoneyWeb: “If you look at our results for Morula, you’ll see they are in fact going backwards; it’s relatively insignificant for us. It has a Gauteng licence, so really we’re trying to maximise the potential for all stakeholders, ourselves obvi-

ously but also the government in the form of taxes and employment. If we were to be successful in our application, the size of the casino would be about 2,000 slots and 60 tables to start with, which makes it a big casino.”

By making an application to move a licence, Sun International is breaking new ground.

“Legally we’re of the view we can,” said Stephens, “and we’re into the process with the Gauteng Gaming Board right now. But no-one else has tried before; maybe they don’t have the same imperative that we feel we have with Morula.”

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North America

UNITED STATES

A major mid-level acquisition has been completed

by Pinnacle, which will make a big difference to its business. The deal demanded two further sales, with Carl Icahn snapping up the Lumiere Place in St Louis, Missouri.

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ACQUISITIONS

Pinnacle completes acquisition of Ameristar innacle Entertainment has doubled the size of its estate with the completion of its acquisition of Ameristar Casinos on August 14.

Ameristar shareholders have received $26.50 (E19.85) per share in cash; the transaction is valued at approximately $2.8bn (E2.1bn), including assumed debt.

Pinnacle, which is following through on ambitious expansion plans both at home and abroad, also announced an amended senior credit facility of

24 | casinoreview September 2013

$2.6bn (E1.95bn) which it is using, along with the proceeds of a recent senior unsecured note offering, to pay the cash price for Ameristar as well as redeeming other notes due 2017.

Pinnacle has added eight properties and will operate a total of 16 properties in nine states.

Pinnacle CEO Anthony Sanfilippo said: “We are delighted to announce the successful completion of this transaction marking a beginning to a merger of two

dynamic companies that will be even better together… We now move forward in a collaborative manner with a clear focus on achieving a seamless integration, maximising the synergies between these two complementary asset portfolios, and unlocking the value that is created by this much larger company.”

He continued: “This has been a transformational year for our company as we merged two great companies to create a family of more than 15,000 team mem-

bers. As a combined company, we have doubled in size, which means more offerings for our loyal guests, enhanced career opportunities for team members and long-term value for our shareholders.”

Carlos Ruisanchez, Pinnacle’s president and CFO, added: “We are optimistic and excited about the benefits that this fortified platform will provide our combined company, including lower risk through increased operational and financial diversification, as

Pinnacle’s CEO Anthony Sanfilippo

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BRITISH COLUMBIA / CINCINNATI / ILLINOIS / MARYLAND / MISSISSIPPI / MISSOURI / NEW JERSEY / NEW YORK / OHIO Optimistic signs ahead of G2E Las Vegas

“IF INDICATORS SUCH AS THE AGEM INDEX ARE CLEAR SIGNALS, THE SUPPLY SIDE OF THE INDUSTRY IS RIDING HIGH AND AT LAST REGAINED THE MOMENTUM.” G2E PREVIEW 40

Lumiere Place in St Louis, soon to be part of Tropicana Entertainment

“

We expect the merger to be immediately accretive to our earnings and free cash flow, and plan to use this enhanced free cash flow stream to repay debt and reduce our leverage...

well as a lower cost of capital and benefits from synergies and efficiencies of scale. We expect the merger to be immediately accretive to our earnings and free cash flow, and plan to use this enhanced free cash flow stream to repay debt and reduce our leverage.”

Competition concerns voiced by the Federal Trade Commission obliged the company to dispose of two properties once the deal was done: the sale of the Lumiere Place Casino in St Louis to Tropicana Entertainment,

part of Icahn Enterprises for $260m (E195m) was announced two days later; the sale to Golden Nugget of Ameristar’s Casino Lake Charles project, which is not yet operational, had already been announced. The price was equal to all the costs incurred by Ameristar in the project to-date, less a $37m (E27.7m) credit, viz $176.9m (E132.6m).

Speaking about the sale of the Lumiere Place Casino, Sanfilippo said: “We are pleased to enter into this agreement with Tropicana

and to sell the high quality assets underlying this transaction to an equally high quality operator of gaming entertainment properties.

We are also pleased to reach this very important next step in addressing the Federal Trade Commission’s concerns regarding the competitive dynamics of the St Louis gaming market, and to progress toward fulfilling the divestiture conditions of the consent order that was accepted by the FTC on August 12. Following the completion of the divestitures of both Lumiere Place Casino and Hotels and Ameristar’s Lake Charles development project, we will use the substantial cash proceeds we receive from these transactions to repay debt and reduce our leverage.”

The sale of Lumiere is expected to close by the end of the first quarter of 2014, subject to the approval of the Missouri Gaming Commission and Federal Trade Commission.

Tropicana got a good deal in Lumiere Place, which Pinnacle opened in 2007 having spent roughly double its sale price on development. The pressure from the Federal Trade Commission pushed the price down, as did a softening of revenues at the property this year.

Gregg Klein, a gaming industry analyst for Imperial Capital in New York, said Pinnacle is getting a reasonable price for Lumiere Place.

“It’s a decent valuation for that casino, especially since it was a forced sale,” he said.

“Carl Icahn looks for bargains, and he looks for opportunities.”

Tropicana’s largest property is in Atlantic City, but it also owns and operates eight casinos and resorts in Indiana, Louisiana, Mississippi, Nevada, New Jersey and Aruba.

Chairman Carl Icahn said: “We are happy that Tropicana, which Icahn Enterprises purchased out of bankruptcy only three years ago, is now profitable and will have expanded to nine casino properties. We hope to continue to make judicious acquisitions in the future.”

The Hollywood Casino Perryville was the first in Maryland to offer live tables

FINANCIALS

Big boost to Maryland from casinos UNITED STATES

aming at the four casinos operating in Maryland generated more than $608.3m (E455.3m) in taxes in the year to the end of June, the Maryland Lottery and Gaming Control Agency (MLGCA) has announced.

The figure includes a contribution from table gaming of $67.2m (E50.3m): table gaming only became legal following approval in a state referendum last November.

Hollywood Casino Perryville was the first to offer live games from March. The largest casino in the state Maryland Live! received its authorisation a month later: it has just opened its new two-storey poker room.

Employment at Maryland’s four casinos has grown to approximately 3,500 - good jobs too, with full-time employees benefiting from comprehensive healthcare and retirement investment options.

“These impressive revenue numbers wouldn’t have been possible without the hard work and dedication of MLGCA staff and

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employees in the gaming industry throughout Maryland,” said MLGCA director Stephen Martino said.

Maryland’s casinos, the first of which opened in September 2010, has generated $906.4m (E678.2m) in tax revenues, with more than $428.9m (E320.9m) supporting education in the state.

Together, traditional lottery and casinos sent $829.5 (E620.6m) to the state, an increase of 27.6 per cent over the previous fiscal year. Traditional lottery sales dipped slightly with the agency generating $1.76bn (E1.32bn) in sales, down 2.2 per cent, contributing $545.2 (E408m) in revenue to the state’s General Fund, down 1.9 per cent “With the growth of Maryland’s casino industry, the decrease in traditional lottery sales this past fiscal year was not unexpected,” said Martino. “However, the good news is clear: when combining traditional lottery and casino gaming revenue, there is a significant increase from the previous fiscal year in the amount of money generated for the state.”

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New Yorkers: Facing a vote for casinos

THE VOTE FOR CASINOS IN NEW YORK: “THE GROUPS IN FAVOUR WON’T HAVE THE SAME RESOURCES AS THE COMBINATION OF GROUPS OPPOSED.” FINANCIALS

LEGISLATION

Station in a steady state

He may be the most powerful man in the state, but Governor Andrew Cuomo will not necessarily get his own way over casinos in New York.

UNITED STATES

Governor Cuomo signed the agreement with the Oneidas in May

Cuomo fighting on all fronts for New York casino measure UNITED STATES

erhaps not unexpectedly, difficulties are mounting for the proposal to create at least four new full casinos on non-tribal land in upstate New York. The measure will be decided by voters in November in a referendum on a Constitutional amendment to allow casino gaming in the state.

The plan is already facing an uphill battle with a June poll putting support at below 50 per cent; neighbouring states on whose borders the casinos would be located are also expected to mount a strong campaign against them.

In order to get it even to this point, Governor Andrew Cuomo had to settle ongoing land disputes with certain tribes in the state, including the Oneida Indian Nation. In May, the governor signed a deal with the Oneidas that, in return for their wholehearted

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support of the casino referendum, their Turning Stone casino near the town of Verona would be given a monopoly on gaming in ten counties in central New York state; it also allows them to put up to 10,100 hectares into a tax-exempt trust.

However, the governor and the state legislature, among others, are now being sued by the towns of Verona and Vernon, which claim that the governor did not have the authority to make the deal. They also claim that it was tantamount to vote buying.

The towns’ lawyer Neil Murray said: “The issue is not whether the Constitutional amendment to legalise gambling is good or bad policy. The important thing is that the election should be a fair one and that the state should not be seeking to illegally affect the outcome by buying votes and silencing critics.”

However, Cuomo’s spokesman Richard Azzopardi said: “The

agreement is sound, has been approved by democratic votes in the relevant county legislatures, and settles longstanding issues between the state and local governments and the Oneidas.”

The suit by Vernon and Verona marks the second legal challenge to the agreement. The Cayuga Nation is fighting the deal in federal court because Cayuga County is one of the ten included in Turning Stone’s zone of exclusivity. The Cayugas say it’s illegal to give one tribe the right to conduct gambling in another tribe’s reservation.

If the deal should unravel, it is unlikely that the promised tribal support for the casinos would be forthcoming.

The referendum on legalising casinos in New York will, unusually, be at the top of the ballot paper in November. Normally, propositions are placed on the ballot in the order they’re approved by the state Legislature. However, six meas-

ures will be presented and proponents of the casino plan, including Cuomo, want the gaming proposition listed first to make sure people see it.

“When it comes out, it will be number one,” said state Senator John Bonacic, who chairs the Senate Racing, Wagering and Gaming Committee. He said plans are also being drawn up for a marketing campaign urging residents to “Vote No. 1”.

Supporters are also planning to provide voting booth attendants to remind people about the propositions before casting their ballot.

Opponents are likely to challenge ballot plan, and they are likely to get support from operators in neighbouring states.

The chairman of the NY Assembly’s Racing, Wagering and Gaming Committee Gary Pretlow said: “The groups in favour won’t have the same resources as the combination of groups opposed.”

TRADE UNIONS

Casino in the Kootenays to unionise 26 | casinoreview September 2013

UNITED STATES

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mployees at the St Eugene Golf Resort and Casino, a First Nation venue in the Kootenays region of British Columbia, have voted to join the BC Government and

Service Employees Union (BCGEU). Union spokeswoman Erin Sikora said: “Many of the workers decided to join because they wanted respect in the work place, and the union to address some key issues such as wages, job security, seniority and fairness.”

fter a first quarter in which Station Casinos took a huge nonrecurring charge, the company was back to a net profit in the second quarter, taking home just under $7.4m (E5.5m), 1.7 per cent ahead of the same period last year. Revenues were one per cent ahead of the 2012 quarter at $316.6m (E236.4m).

Nevertheless, the company said it had achieved a ninth consecutive quarter of Adjusted EBITDAM (EBITDA plus management fee expense).

Marc Falcone, EVP and CFO, said: “Station Casinos continued its successful track record of strong operating performance and generated its best second quarter of Adjusted EBITDAM and Adjusted EBITDAM margin in five years.

Our ability to efficiently manage operating expenses without compromising our highest level of guest service led to another quarter of impressive results.”

Station Casino came out of contentious and protracted Chapter 11 process in May 2011, two years after declaring it wasn’t able to pay its creditors.

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Atlantic City: Can Mazer turn it all around?

CAESARS IN ATLANTIC CITY: “THE COMPANY’S RESORTS WERE AMONG THE HARDEST HIT IN THE FIRST SIX MONTHS OF THE YEAR IN TERMS OF BOTH REVENUES AND GROSS OPERATING PROFIT.” MANAGEMENT

PRIZE-MONEY

Caesars sends Mazer to turn round Atlantic City properties

Namesake causes million-dollar muddle in Cincinnati

UNITED STATES

With revenues and profits continuing to slide in New Jersey, Caesars has sent a trusted big-hitter, Rick Mazer, to try and turn around its properties.

ick Mazer, the Caesar’s executive who has been overseeing the development of The Linq project in Las Vegas, is to move to Atlantic City to manage the company’s four casinos in the struggling New Jersey resort, as well as the Harrah’s Philadelphia racetrack casino in Chester, Pennsylvania.

According to New Jersey’s Department of Gambling Enforcement, the company’s resorts - Bally’s AC, Caesars, Harrah’s and Showboat - were among the hardest hit in the first six months of the year in terms of both revenues and gross operating profit.

Net revenues at Bally’s AC fell 19.5 per cent in H1 to $129.6m (E97m), with only the much smaller Trump Plaza recording a larger fall. Gross operating profit fell 50.5 per cent in the period to $19.3m (E14.4m). Caesars revenues and gross profits were down 7.3 per cent 6.1 per cent respec-

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UNITED STATES

he Horseshoe Casino Cincinnati, which opened in March, has garnered some very positive, if expensive, publicity after it awarded a $1m (E749.5m) prize in a promotion to the wrong man and let him keep it.

The casino announced Kevin Lewis as the prizewinner on August 10 with great fanfare in front of a crowd of people. The delighted man went to collect his cheque and spoke to the media about his good fortune before final identity checks were completed by the casino.

It was then they realised that another Kevin Lewis was the real winner.

“This was our blunder,” said the casino’s senior vice president, who himself has a fortunate namesake, Kevin Kline. “So consistent with our commitment to do the right thing for our guests, Horseshoe awarded a $1m prize to each of the men.”

Lisa Rexoat Steele, a spokeswoman for the casino, told reporters afterwards: “There were a lot of similarities between these two Kevin Lewises, in their age and other things. It was just one of those things that you couldn’t have scripted if you wanted to.”

The casino’s fair-mindedness did not go unnoticed and was reported in news bulletins across the United States.

T Rick Mazer returns to where he began his life in casinos

tively; Harrah’s figures were down 12.7 per cent and 19.8 per cent, while Showboat was down 15.4 per cent and 30.2 per cent respectively. Unlike five other properties in the city, including the much-troubled Revel, the Caesar’s venues are all still showing an operating profit.

In addition, Mazer will oversee efforts to develop a $1bn (E748m) casino resort in East Boston, where the company has teamed up with Suffolk Downs in a bid to build the one casino allowed in the Greater Boston area under Massachusetts’ 2011 casino law.

Mazer will also supervise a $126m conference centre under construction at Harrah’s Resort, which both Caesars and the city hope will attract a larger share of the $16bn (E12bn) conventions and meetings market in the northeast US. Mazer started his career as a craps dealer in Atlantic City. He moved up through the ranks and before moving to Las Vegas, spent 15 years as a

casino executive in the Midwest during which time he gained experience in directing major projects, including a half-billion dollar makeover of the Horseshoe Hammond casino in north-western Indiana, about 15 minutes from downtown Chicago.

“Originally, it was a regional casino and he turned it into one of the most popular casinos in the Midwest,” said communications director Gary Thompson. “Internally, he’s best known as being a great boss and for having a great relationship with employees. He’s a very personable, down-toearth guy.”

For now, Mazer will hold the titles of senior vice president and general manager. Thompson said Caesars Entertainment may eventually name him president of its Eastern Division.

Caesars has not had an Eastern Division president since the departure of Don Marrandino in January. Marrandino, who had directed the Atlantic City casinos since 2009, left for undisclosed reasons.

The Horseshoe Cincinnati

LEGISLATION

Illinois ‘deadbeats’ gambling wins docked 28 | casinoreview September 2013

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new Illinois law will see the gambling wins docked of parents who are behind on their child support pay-

ments. Casinos and racetracks will now be forced to check an existing database of so-called ‘deadbeat’ parents and turn over anything they have won to the state government for distribution to the parent who is

owed. The law’s sponsor, state Senator Darin LaHood (pictured), said the state could collect as much as $1m (E750,000) in its first year. Governor Pat Quinn immediately signed the bill into law.

CASINO CURRENCY

PRECISION DICE

CARDS

FURNITURE E & LAYOUTS

Ass a tru rust sted proviide derr of every ve eryth thin ing g fr from om cas asin ino currency to gami ming ng furnitu iture re and pre r ci cisi sion dice, we off ffer ff e an er u matche un hed he d sele lect ctio ion n of essen enti tial a table game products. Unlike distributors, we directly y manuf ufac actu ture re ourr pro r ducts to yourr ca casi siino’s no’s unique no e sp spec e ifications, so you always know what you’re getting. To learn n more abo bout ut the e val a ue of pu urc rcha hasi s ng dir si i ect from om GPI, contact your local sales representative or visit uss at G2E Boo ooth th #44 441 4.

G A M I N G PA R T N E R S I N T E R N AT I O N A L T H E A M ER R I C AS A · E U RO R O P E · A S I A | www.gpigaming.com g p i g a m i n g . co m

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News

North America

Las Vegas: Making a comeback?

WYNN’S LAS VEGAS BOOST: “THE REVENUE INCREASE WAS DRIVEN BY HIGHER REVENUES FROM THE COMPANY’S LAS VEGAS OPERATIONS.” BUSINESS NEWS 74-79 CONSTRUCTION

Island View announces major expansion

Island View casino will get a new beachfront hotel tower

rants, meeting and convention space, as well as a pool and bar overlooking the sland View Casino Resort beach and Gulf of Mexico. in Gulfport, Mississippi The new hotel will be has announced plans for constructed within the a major $50m facelift and existing footprint of the expansion. The resort structure currently located intends to develop the on the south side of Beach waterfront corridor of its Boulevard.

16-hectare site to include a The expansion, says the beachfront hotel, restau- company, will increase UNITED STATES

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Gulfport’s hotel-room inventory by around 400 as well as create the largest meeting and convention space in the area.

Rick Carter, who owns the resort along with Terry Green, said: “The 16-storey beachfront hotel tower will offer exceptional views of the Gulf of Mexico, along with immediate access to

the beach. Those features are a unique combination not only in our market, but also for the region.”

Construction will begin in the autumn and is expected to be complete by summer 2015.

The plans have been well received by the local authorities. Gulfport Mayor Billy Hewes said: “We fully support this expansion and are enthusiastic about the future development of Island View Casino. This beautiful coastal property will soon come to life and ignite new development along our Gulfport shoreline.”

Island View is one of the Gulf Coast’s largest casino resorts, featuring 1,980 slots and 46 table games on a 7,430sq m gaming floor. Formerly owned by Harrah’s and operated as the Grand Casino Oasis, it was sold to local investors after Hurricane Katrina.

OPENING

Ohio Hard Rock set for pre-Christmas opening

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new Hard Rock racino at the Northfield Park racetrack in north-eastern Ohio will open on schedule in December, the operator has said. The 18,600sq m, $265m (E198m) “Rocksino” will feature 2,300 VLTs, including some outside on smoking patios, a comedy club, restaurants and a 1,900-seat Hard Rock Live music venue and Hard Rock Café. The venue will be adorned with more than $1m-worth of music memorabilia. It will be third of seven racinos expected to open in the state.

30 | casinoreview September 2013

NORTH AMERICA ROUND UP he parent company of Golden Nugget Atlantic City may possibly sell the casino or its internet gambling rights following a series of disappointing financial results. Despite a $150m (E114m) renovation last year that transformed the property into a glitzier casino, Golden Nugget has continued to lose money under the ownership of Houston-based Landry’s.

Landry’s, the restaurant, entertainment and casino conglomerate controlled by Texas billionaire Tilman Fertitta, says it has been approached by the investment bank Houlihan Lokey to consider selling Golden Nugget or its internet gambling rights “due to some interest from outside parties”.

The Illinois Casino Gaming Association, meanwhile, is petitioning the state’s gaming board to allow 24-hour gambling at its riverboat casinos. Casinos in Illinois currently have to close for at least two hours each night. A representative for the Casino Gaming Association said places like truck stops already have 24-hour gaming, and Illinois is the only state that doesn't allow casinos to do the same.

In Canada, a request for two casinos in Ottawa has been rejected ahead of a debate on the issue at the city’s finance and economic development committee meeting. The committee had been set to vote in August on whether to get behind Mayor Jim Watson’s request. The mayor had said he wants the city to keep existing slots at RideauCarleton Raceway while adding a second facility elsewhere.

In Vancouver, the Great Canadian Gaming Corporation is preparing to open Canada’s first Hard Rock Casino this winter in Coquitlam. Great Canadian is renovating the existing Boulevard Casino, and turning it into an-all new Hard Rock venue that, in addition to an expansive gaming space, includes three bars, live performances and a 1,000-seat theatre.

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www.shfl.com

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South America

CONSTRUCTION

Carrasco Nobile non-completion fines mount as sale rumours persist URUGUAY

With work still not finally completed on the Hotel Casino Carrasco in Montevideo, the operator has been subject to another huge fine, the second since May. A possible sale by Codere would not affect management, according to the CEO.

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he city of Montevideo has fined Carrasco Nobile, the operator of the Marchopened Hotel Casino Carrasco US$607,000 for non-completion of the project according to the concession. The huge fine, imposed in August, is in addition to another of $193,400 announced in May, bringing the total in penalties up to just above $800,000.

The tasks still to be completed are both inside and out and include remedial and improvement work around the building, steel structures, doors, windows, finishes, sanitary fittings, furniture, sound insulation, plumbing, fire protection measures, lighting, electrical and a transport system.

According to the contract, the city administration can impose a fine of 0.01 per cent of the project’s estimated costs of just under $45m: the level was set at $4,498 per working day of delay, excluding stoppages due to weather or strikes from October 23 last year, a total of 135 days.

Spanish gaming operator

32 | casinoreview September 2013

Codere, which owns 51 per cent of Carrasco Nobile, has suffered from large losses in Argentina and Spain and has been reported to be in talks to sell its stake in Montevideo to a consortium involving Chile’s Dreams and South Africa’s Sun International.

However, Guillermo Arcani, the CEO of Carrasco Nobile has said Codere’s group-level troubles have no impact on the business.

He told a press conference on August 16: “Codere is in a situation of financial stress at its headquarters in Spain… The solution [to the group’s problems] does not depend on the sale or not of the hotel.”

He added that if shares were to be sold in Carrasco Nobile, the continuance of the current management “is not in any doubt”.

However, the head office in Madrid has been aware of the troubles at Carrasco, telling investors that it expects to make a loss in the first year of operation of at least US$7m, more than it was expecting.

Arcani said: “We have nothing to do with what the

parent company says. We know our goal is make this operation as profitable as possible. We are independent of our shareholders; perhaps in a previous time when we were dependent on those funds, the situation would have been different, but we are now underway and the numbers are improving.”

In respect of the unfinished works he said: “Everything has been done while keeping guest care as a priority while the hotel has been operating. Now we have a building with a level of finishing that is a model for Uruguay. Within the 2,000 observations that the Municipality of Montevideo has made, there is a large number of duplicated and recurring matters as well as minor details that would be dealt with in the normal course of operations.”

He added: “We are going to appeal both fines - we have already started the process for the first one and we will take the same route for the second. We have not yet had a formal response from the city about the first of the fines.”

Where the Hotel Casino Carrasco is finished, it sets the standard for luxury in Uruguay

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ARGENTINA / MEXICO / PARAGUAY / PERU / URUGUAY Hotel Casino Carrasco

CARRASCO NOBILE MAKE A DEFIANT DEFENCE AGAINST FINES: “NOW WE HAVE A BUILDING WITH A LEVEL OF FINISHING THAT IS A MODEL FOR URUGUAY.”

SOUTH AMERICA ROUND UP outh African gaming giant Sun International is ramping up its presence in Latin America, after announcing it would acquire a 600-slot, 32-table casino in Panama and has applied for a casino licence in Colombia, where it already holds a long-term lease for a casino in Cartagena. The Trump Ocean Club hotel opened in Panama City two years ago, but progress has been hindered by the developer’s financial issues. In May Newland International Properties Corporation went through bankruptcy proceedings in the US, as it negotiated a restructuring of its $220m (E167m) debt. The 75,000sq.ft Trump Casino could be open as early as February and, once complete, will be the second property in Latin America for Sun, which developed the Monticello in Santiago, Chile.

Elsewhere, Thunderbird Resorts announced that it has sold its entire economic interest and management rights in its Philippines and related British Virgin Islands operations to Magnum Leisure and its related entities, affiliates of Solar Entertainment for a post-tax, net price of $26.5m (E20.1m). The group’s reported consolidated debt will also be reduced by at least $9.2m (E7m).

Following a series of delays in the wake of the 2008 economic downturn, Hascall Steel Company said the Croc’s Casino Resort will open its doors in Costa Rica in December 2014. The $48m (E36.4m) venue in Puntarenas Garabito will include more than 900sq.m of gaming space, 152 standard hotel rooms and 44 condominiums along a 60m stretch of beach. A 460sq.m convention centre is also earmarked for development on the site.

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South America

Colombia: Next on the Enjoy radar?

ENJOY-ING GROWTH: “WE WANTED TO COME FROM THE PACIFIC TO THE ATLANTIC TO STRENGTHEN LATIN AMERICA AND BE THE NUMBER ONE IN THE REGION.” EXHIBITION

Peru Gaming Show visitors up a third PERU

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The Hotel Casino Conrad is the landmark property in Punta del Este

EXPANSION

Punta del Este Enjoy’s next step to Latin American leadership The Martínez brothers behind the ever-expanding Enjoy chain of casinos, including now the Hotel Casino Conrad in Punta del Este, have revealed their ambitions well beyond their current horizons.

URUGUAY

hile’s largest casino operator Enjoy has said it wants to use its recent acquisition of the management of Hotel Casino Conrad in Punta del Este as a springboard to leadership among casino operators in Latin America and beyond.

The company held an event at Punta del Este on August 23 at which it explained its strategy for the future operation of the Conrad, the management of which it took over from Caesars Entertainment on June 1. The deal saw Enjoy hand over for US$139.5m (E140.3m) for 45 per cent of the shares in the Caesars-owned operating company Baluma as well

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as 4.5 per cent of it own shares. Enjoy has an option to acquire the remaining 55 per cent of Baluma within three to five years.

The directors of the Martínez-family-owned Enjoy expressed their satisfaction about the development of the new project and their enthusiasm for the work they are undertaking in time for the next southern summer season, from December to March.

President of Enjoy, Antonio Martínez, said: “We wanted to come from the Pacific to the Atlantic to strengthen Latin America and be the number one in the region.”

He described the investment in the Uruguayan resort, a very popular tourist destina-

34 | casinoreview September 2013

tion for Argentina, and to a lesser extent Brazil, Paraguay and Chile, as a “major leap” in its regional expansion policy.

As part of that plan, he revealed that Colombia is “possibly the next stop” for the group as well as Panama, which is again attracting its attention. It had to give up a previous project there because of “commercial considerations”.

His brother, executive vice president Javier Martínez, added that his goal is “to be one of the ten best businesses in the world” once it has consolidated its leadership in Latin America.

He said that the firm’s commitment to the Conrad is to at least 2020. He said big challenge will be to

ENJOY: GAMING FORTUNES njoy made its first foray into the industry in 1975 to acquire Chilean casino resort of Viña del Mar and took over the hotel there in 2002. Today it has nine business units in Santiago, Coquimbo, Pucon, Puerto Varas, Colchagua, Chiloé and Antofagasta, all in Chile, and in Argentina in the city of Mendoza. In total it offers 1,021 rooms, 6,523 slot machines, 352 table games, 860 bingo positions, 24 restaurants and 34 bars, as well as spas, convention centres, cafés and nightclubs.

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“break the seasonality and extend the season” at the hotel, which depends, like the whole resort, on the summer weather.

The new operators have already started some remodelling and expansion of the casino; the refurbished venue will be inaugurated on November 2, coinciding with the sixth anniversary of Conrad and will feature a performance by former Beatles drummer Ringo Starr for VIP customers of Conrad.

Today the hotel has an annual occupancy of 80 per cent, but Javier Martinez said they were considering expanding the number of rooms 294. He said: “This hotel is always full, so it’s a tremendous challenge to improve the way it’s run.”

ffiliated Marketing Group, the organiser of the Peru Gaming Show, has said that more than 3,000 people visited the exhibition, which took place at the Lima Jockey Club in August: that represents an increase of at least 33 per cent over the previous year. The international Gaming Conference that ran alongside also saw an increase in attendance with more than 600 delegates.

AMG’s CEO Joe Lopez said: “After lots of hard work and worry, all our efforts were rewarded.

All attendees, from exhibitors to guests, visitors and even staff who worked on the assembly and delivery of products, were impressed by the tremendous growth and progress that the show has made over the last three years.”

He added: “Our traditional welcome party was also a resounding success. However, leaving aside the fun, we know that the real purpose of the show is so that manufacturers and suppliers can offer their products and close deals. Although we do not have exact data, preliminary reports indicate that many agreements were closed and new contacts were made as a result of the show.”

And the organiser has responded immediately to those problems that did arise. Some visitors and exhibitors complained of cold in the exhibition hall, so the organisers have decided to change the show dates for next year: the Peru Gaming Show 2014 will be held June 11-12 which also takes it away from G2E Las Vegas in September.

www.ingg.com sales@ingg.com

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South America

SAGSE heading to Buenos Aires

EXPOS: THE SOUTH AMERICAN MARKET HAS TWO KEY EVENTS SCHEDULED IN NOVEMBER. SAGSE IN BUENOS AIRES (12-14) AND THE BRASILIAN GAMING CONGRESS IN RIO DE JANEIRO (18-20) CLOSURES

Mexican congress investigates casino permits

Codere demands rethink on Monterrey closures

Talía del Carmen Vázquez Alatorre alleges corruption over casino licensing in Mexico

PERMITS

MEXICO

n investigation has been launched by the Mexican Congress into alleged irregularities in the granting of permits to operate casinos during the administration of former president Filipe Calderón.

During President Calderón’s six-year term, which came to an end last December, the number of casinos in Mexico increased dramatically, leading to accusations that government officials were bribed to give permits to casino operators, some allegedly linked to organised crime. Some of the accusations have been attributed to sources from within the former president’s cabinet.

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LEGISLATION According to the local press, Talía del Carmen Vázquez Alatorre, the ex-wife of Juan Iván Peña Neder, director of the Gambling and Lotteries agency under President Calderón, said she personally witnessed many government officials accepting bribes to grant casino permits.

Félix Hays, the congressman who announced the investigation, said it will have the full support of the Secretariat of the Interior, which has provided a special committee charged with investigating the alleged irregularities, including the granting of hundreds of permits by the Gambling and Lotteries agency during the final months of the Calderón administration.

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MEXICO

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epresentatives of the Mexican legislature and executive are to work together on a new Federal lotteries and gaming law, according to a senior deputy, Ricardo Mejía Berdeja (pictured). After a “positive” meeting with the minister Miguel Ángel Osorio Chong on August 20, Mejía Berdega said: “[We will] work together to promote a new law…that properly regulates the performance of these facilities in our country.”

REGULATION

Hopes for legal operators in Paraguay

Salta government revokes Enjasa licence operates gaming in the province.

According to the econhe governor of the omy minister Carlos north-western Argen- Parodi, the licence was tinean province of revoked because the comSalta Juan Manuel Urtubey pany had failed to respect has revoked a 30-year the rules and regulations licence held by the Enjasa, relating to money launderthe private company that ing. He said: “Enjasa will ARGENTINA

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36 | casinoreview September 2013

MEXICO

eatrice Rangel, president of Codere in Mexico, has said that the unilateral action by the Monterrey authorities to close the company’s Yak and Caliente venues ignored the legal licences they were operating under. She has demanded that the administration and the mayor Margarita Arellanes allow them to reopen, saying that they were paying for the sins of others. Casino Royale in Monterrey was the scene of an organised crime-related arson attack that killed more than 50 people in August 2011 The remaining casinos were closed, temporarily initially, last February, and permanently in March, on the orders of Arellanes, who in June gave the freedom of the city to Jesus Christ.

According to Rangel, the closures were illegal and have left more than 800 families without support because of the lost jobs.

Agreement to work on new gambling law

LICENCE

President of Codere Mexico, Beatrice Rangel

have all defence processes available to it. It must sit down with the gaming regulator Enreja to begin negotiations and establish a transition plan to ensure jobs.”

He said that although Enjasa held the gaming licence, it had taken on

external managers and operators. In addition casinos had opened without authorisation.

In 2010, the provincial government signed a contract to install national slot monitoring with the Sistema de Control Online Real Time.

PARAGUAY

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egal gaming operators in Paraguay have called on the new government elected in August to ensure that the regulator Conajzar maintains and strengthens a clearly technical profile in order to eliminate illegal gaming, which is probably larger than the legal industry. The government led by President Horacio Cartes (pictured) has already started making key appointments to Budget Ministry, in which Conajzar is located.

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Comment & Analysis

VIEWPOINT

AGA calls for streamlined shipping rules Geoff Freeman, new president of the American Gaming Association, presents new proposals the organisation has developed to remove some of the red tape surrounding the shipment of gaming machines in America.

C Geoff Freeman, AGA president

urrently in North America, 365 individual jurisdictions apply different sets of regulations to the shipment of gaming machines, which fill more than 1,000 pages and create a scenario in which 1.5m different combinations of regulatory requirements can apply to the shipment of a single machine. For five of the larger manufacturers of gaming machines, these regulations generated nearly 61,000 separate filings over a recent 12-month period, requiring the dedication of 29 full-time and 20 part-time workers.

The American Gaming Association (AGA) is leading an effort to streamline

the overly costly and complex regulatory requirements related to gaming machine shipping practices. In our new research paper, “Streamlining Shipping: Recommendations for Regulatory Reform”, an AGA task force of compliance experts and former regulators offers solutions to the current regulatory system, which creates daunting complexities for both gaming businesses and industry regulators. The research is being distributed to industry regulators throughout the country and around the world.

These modest but significant reforms to shipping rules achieve the balance of making it more efficient for our companies to do business while maintaining the

integrity of the industry.

Meeting the concerns of regulators and adding efficiency to business operations will make our already good system even better; it propels our industry forward by alleviating unnecessary burdens on manufacturers, operators and regulators.

The white paper suggests seven specific recommendations for standardising and streamlining shipping rules to simplify the burden of compliance while providing the same or even enhanced regulatory control. Just a few changes would create substantial efficiencies, smoothing the flow of new products to consumers without reducing regulatory effectiveness: allowing shipment of com-

plete machines, establishing a uniform advance notice period for shipments, allowing shipment without express prior authorisation, allowing shipments directly to customers and multiple customers; exemptions for non-gaming components from prior notice requirements; removing the requirement of prior notice before removing slot machines, and allowing shipment notices to be delivered either electronically or via e-mail to a single regulatory official.

This work is the result of an aggressive regulatory reform initiative launched in 2011 by the AGA and was a top priority among the original ten recommendations.

SOUNDBITES

Australia should do more to attract Chinese Australian casinos need to improve their standards and service if they hope to increase their share of the lucrative Chinese VIP and upper middle class markets, Rowen Craigie, CEO of Crown Limited told analysts in August.

His comments here are drawn from various sources.

think the concept that if one Australian property increases its VIP business the others have to go backwards has been disproved over the last few years and even in this results period where we’ve seen Sydney Melbourne and Perth all grow.

Australia as a whole only has about 2.5 per cent of the Asian high roller market. I reject the notion that if one property exhibits growth, it means the other properties decline. There’s no reason for example why Perth should have five timeS the business of Brisbane given the relative size

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38 | casinoreview September 2013

of the cities: it’s purely a matter of the offering.

Brisbane is clearly an opportunity. The more options that Australia can give the Chinese high-roller, the better - it is about critical mass. If Australia is going to compete against Las Vegas and Singapore and Macau, it needs to have multiple, high-quality offerings, not just one.

Our view remains unchanged that Brisbane is currently under-performing and is not capturing its fair market share of the international and interstate market, The commission rate for

junkets is a major determinant for getting the business, and also obviously play conditions in terms of bet limits. But there’s also the quality of the accommodations, service levels et cetera, and the accessibility of the casino to the home market, the origin of the players. All of those are important but commissions are equally important.

It’s going to be a lot about the ability to get that middleclass Chinese tourist to come to Australia. Visas become important, direct flights, what’s the airport experience, what’s the accommodation like, the

restaurants. That middle-toupper Chinese tourist market, which every country in Asia and around the world is chasing, gets back very much to what are the competitive fundamentals of the tourism industry.

Rowen Craigie, CEO of Crown

QUOTE UNQUOTE

“ GS fully respects protection of intellectual property rights. Like any other trade show, MGS has strict rules regarding such matters. Each exhibitor must fully observe these rules. All exhibitors are welcome at MGS as long as they respect and observe the MGS rules.”

Marina Wong, event director of the Macau Gaming Show (MGS)

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While we have been able to introduce cost-saving measures, business is not what it once was nor is the value of the state’s holding - and it’s getting less in taxes as well. If we can move to a better area that will mean more visitors, more revenues both for us and the government.”

Ian Gosling, CEO of Regency Entertainment, on why he wants to move Casino Mont Parnes

“

The Aquis proposal is unique, in Asian integrated resort terms, by associating its appeal to the unique natural environment and region it is located in. Aquis will be, by its very design and market position, a high profile project to drive Asian tourism awareness of North Queensland and the Great Barrier Reef.”

Tony Fung, chairman of the Aquis Resort at the Great Barrier Reef

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COMMENT: EMAIL HUGH.SORRILL@VIRGIN.NET • JAMES WALKER ON JW@SJC.CO.UK UK tackles offshore tax issue

TAXING TIMES: “IT IS UNACCEPTABLE THAT GAMBLING COMPANIES CAN AVOID UK TAXES BY MOVING OFFSHORE AND THE GOVERNMENT IS TAKING DECISIVE ACTION.” UK TREASURY MINISTER COMMENT

A welcome injection of exuberance and style

T The Versace version of extravagant opulence will be ideal for Macau, says Hugh Sorrill, and is great partnership for the market’s oldest player SJM.

he announcement that SJM and Versace are to team up to create an opulent Palazzo Versace resort in Cotai quickened my heart a little. Now, as those who know me will testify, I’m no clotheshorse - more a clotheshippo - but this seems to me to be a marriage made at the pearly gates of heaven.

Quality brands are such a huge mark of aspiration and driver of commerce in Asia, and especially China, that it cannot - or should not fail. It astounds me every time in the malls of

Macau, in which the deluxe marques have multiple outlets, that people are thrilled simply to have their photo taken outside the shop, whether or not they can afford to buy anything inside.

Versace is as good a brand as it gets, a style that is so exuberant it needs to be handled with care: too much and it could verge, dare I say it, into the kitsch. Its first foray into hospitality with the Palazzo Versace in Queensland, Australia, which opened in 2000, is regularly cited as one of the best hotels in the

country. Another is currently under construction in that other brandobsessed city of Dubai.

I have two caveats.

Firstly, fashion brands can themselves go in and out of fashion and once out, the accessories to the brand suffer disproportionately. Secondly, brands are aspirational: those who have made it will, over time, gravitate towards exclusivity and uniqueness rather than a product or service that could, potentially, be accessed by anyone. Versace’s haute couture, upon which everything else depends, is exclusive

and unique - which helps.

So what does Versace bring to SJM? To start with, sophistication. With the best will in the world, SJM’s casinos in Macau are long on bling, short on style, even its flagship Grand Lisboa, where crystalline beads drip abundantly and dustily over tired gaming tables and even more tired dancing glamour models.

SJM is a latecomer to Cotai, for understandable historic reasons, and it needs to make an impact and a statement. A Palazzo Versace will do that and will appeal precisely to the aspirational

premium mass-market players that represent the fastest growing segment currently in Macau.

The Versace name is also likely to appeal to more women.

Extravagant opulence is a marker of wealth in Asia of course but it has to be quality. Some of SJM’s existing casinos demonstrate that, especially the original Hotel Lisboa, which is my favourite hotel in Macau for all that it is the oldest.

The Versace version of extravagant opulence will only serve to broaden the perception of SJM’s cultural horizons.

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Preview G2E 2013

GLOBAL GAMING EXPO

Out of the fire and into the future

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The fires of the recession have died down but in them the gaming industry was recast: content and platform are almost entirely separate now even as the companies that created both amalgamate. The results will be seen at G2E 2013, says Hugh Sorrill.

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ike points distributing themselves evenly across a sphere, the world’s major gaming trade shows have now found locations and dates across the year that gives each of them breathing room and exhibitors time to plan.

G2E’s move to the Sands Convention Center a couple of years ago turned out to be a good one, with the squarer shape making it more cohesive and the major exhibitors located beyond the smaller companies giving everyone a chance to make new contacts and do business.

If indicators such as the AGEM Index are clear signals, the supply side of the industry is riding high at the moment and has at last regained the momentum it had just before the market slump of 2008 that led their customers to barricade themselves into their vaults. New projects all but ground to a halt; decisions to upgrade or even replace gaming machines and systems were deferred.

The US has seen its casino landscape change dramatically in the last five to ten years, which has altered how the industry, itself affected as much by the causes of the

recession as by its effects, has come out of it. In Las Vegas at least the recovery seems well underway; some markets in the US are not faring so well - Atlantic City of course, and some of the riverboat jurisdictions.

Many others, including the muchexpanded Tribal casinos are largely ticking over nicely - not spectacularly but nicely.

Across the rest of the world, expansion in Asia and Oceania continues to create a pipeline of opportunities. The shine has gone off South America slightly, particularly with the import/export difficulties in Argentina. Europe’s major casino markets in the Eurozone countries are facing real problems.

So for the supply side of the industry, the US market offers the best opportunity for sales into traditional casinos. But their interests are extended well beyond that now: early forays into server-based gaming have meant the major machine manufacturers were well placed to take advantage of the growth in VLT markets. Providing content for online gambling has been lucrative, especially if they also control the

platforms it appears on.

There have been important mergers and acquisitions completed or announced that are changing the architecture of the supply side. IGT’s expensive acquisition of DoubleDown Casino 18 months ago now doesn’t look quite so much of gamble. WMS will soon be able to tap into a whole new source of inspiration when it is sold to SG Gaming.

Bally’s acquisition of SHFL will create the world’s first truly pan-sector gaming supply company from tables and accessories to games and electronic and online versions of both.

This convergence of companies reflects the convergence of activities - and that is as much a function of the need for their customers to operate as efficiently as possible as it is to do with the technology now available. This year at G2E expect there to be delivery platforms aplenty on offer from techiest mobile system down to a standalone EGM or table. Also expect a renewed focus on content, from a vast array of video and reel games to new table games or innovative side bets - content that can be easily adapted for any device.

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GLOBAL GAMING EXPO (G2E) 2013: SANDS CONVENTION CENTER LAS VEGAS 23-26 NOVEMBER 2013 Las Vegas Sands

“AT G2E EXPECT THERE TO BE DELIVERY PLATFORMS APLENTY FROM THE TECHIEST MOBILE SYSTEM DOWN TO A STANDALONE EGM OR TABLE... PLUS A RENEWED FOCUS ON CONTENT.” G2E FACTFILE

GROWTH

INNOVATION

• G2E is finally regaining the voluminous size it boasted in pre-recession 2008.

This year’s show is set to be the largest for five years, with over 455 companies registered so far.

• The exhibitors are spread across 285,000 square feet of the Sands Expo & Convention Centre, with over 110 new exhibitors filling an additional 25,000 square feet more than last year’s show.

• There are conferences about everything from Casino Design to iGaming at this year’s show, with 123 of them crammed into four days from September 23-26.

• The separate iGaming Zone plays host to more than 19 exhibitors filling 2,900 square feet, which is a 61% increase compared with 2012.

• Food and beverage executives have a smorgasbord of options to choose from at G2E 2013. There’s been a mammoth 84% leap in the floor space taken up by the 86 exhibitors at this expo when compared to last year’s mere morsal offering.

• There are a host of new additions to this year’s expo including a full day of crosstraining known as the G2E 101. It features specific workshops by management staff from a diverse range of departments, including Casino Marketing, Human Resources, and Finance.

• This year many of the conferences will be translated into Spanish in order to open up the Expo to more visitors from around the world.

• Taking a deeper dive into brand promotion are the 360 marketing sessions which will focus on customer relations and big data analytics.

NETWORKING • This year attendees can begin networking before they even arrive. My G2E Network is part of the Show Planner section of globalgamingexpo.com. Link your profile to your show registration and you can begin searching for useful contacts.

• This year the Regulators Lounge (Booth #5420) will provide a special enclave for

regulatory staff at G2E and the Regulator’s Networking Reception (Tuesday, September 24 at 3:30pm) will give them space to connect in a relaxed setting.

• Young gaming executives at G2E will be treated to some pearls of wisdom as part of the Emerging Leaders Program. Any gaming professional under 40 years old will be able to attend the Town Hall meeting (4:00, Sept. 25th) led by Bill Hornbuckle, CMO at MGM Resorts International and the Networking Reception (5:30 pm) which follows on right after. I wonder whether age identification will be necessary?

KEYNOTE EVENTS

CEO of Pear River Resort; Virginia McDowell, president and CEO of Isle of Capri Casinos, Inc.; Tobin Prior, CEO of Ultimate Gaming; Anthony Sanfilippo, president and CEO of Pinncal Entertainment, Inc.; and Timothy J. Wilmott, president and COO of Penn National Gaming, Inc. • Last on the Keynote schedule there will be a Tribal Gaming roundtable moderated by Victor Rocah, owner and editor of Pechanga.net. Among the 8 panellists are Chuck Bunnel, chief of staff, External & Governmental Affairs for the Mohegan Tribe and Jason Giles, executive director of the National Indian Gaming Association.

• The Keynotes at G2E kick off on Tuesday (23rd September) with a dash of comedy courtesy of the Second City comedy troupe. The improvisational Chicagoans will focus on the problems that beset corporate environments.

• The annual State of the Industry keynote (10:30am, Wednesday, September 25th) stars five major executives, moderated by Nevada journalist Jon Ralston. The panel consists of Holly Gagnon, president and

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September 2013 casinoreview

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Guide

G2E Products

IGT

NOVOMATIC GROUP

IGT plans to shine at G2E

Novomatic b it all to Las IGT is poised to demand attention at G2E 2013 with an impressive booth design and footprint. The gaming technology company will also bring bold new content to the table and is poised to showcase DoubleDown’s convergence capabilities, MegaJackpots titles, topperforming core games and industry-changing innovations.

G

2E 2013 will provide a major platform of innovation for IGT this year with the spotlight cast on its social gaming website DoubleDown Casino, which boasts more than 1.7m daily active users from around the globe. G2E attendees will also be able to witness ‘The DoubleDown Casino Winner’s Circle’, an interactive gaming experience that takes show visitors on a 360degree journey of all of DoubleDown’s capabilities.

Operators will have an opportunity to learn more about the mutually-beneficial DoubleDown Casino Partner Programme, witnessing first-hand how this collaborative solution can expand their reach for new players and ultimately create increased customer loyalty and retention. Show visitors are also invited to tour IGT’s latest batch of MegaJackpots titles, which include IGT’s new pop culture-inspired game roster.

Inspired by the 1980s movie, Footloose, the multi-level progressives video slot Footloose MegaJackpots features five spinning reels and up to 30 paylines. Packed with iconic imagery, hit music and main characters from the film, players will have the chance to unlock

42 | casinoreview September 2013

thrilling bonus content.

IGT’s new Ghostbusters Triple Slime is the sequel that follows the popular Ghostbusters Who Ya Gonna Call slot, allowing players to trap ghosts for big wins on three bonus wheels. Credits are also awarded in the scatter bonus, adding extra player interaction.

IGT will also acknowledge triedand-true core titles with the new game, Winner’s Choice. Debuting at G2E, this game allows slot enthusiasts to choose from six of IGT’s most played core games, including Wolf Run, Cleopatra and Siberian Storm, and play any mix of four games at once. Winner’s Choice is full of bonuses including a two-level progressive. G2E attendees can also look forward to the debut of Sweet Three - the playful trio of IGT’s slots - Candy Bars, Cats ‘N’ Dogs and Takes the Cake - which can be played simultaneously for big win potential.

Finally, IGT’s Game Changer series, which can be tailored to specific player demographics, enhancing the player experience, will also be on show at G2E this year.

STAND NUMBER: 2241

The Novomatic Group will participate at the G2E gamin feature all the latest international product highlights and subsidiaries.

G

lobal gaming group Novomatic is planning a highly-integrated product presentation at G2E in Las Vegas . Teams of Novomatic Americas and Austrian Gaming Industries (AGI), plus all its Latin American and many international subsidiaries will be live at the show in Las Vegas to present their products and solutions to the international show visitors. The product display will range from slot machines and games to jackpot solutions and accessory signage (various jackpot and end-of-bank signs), slot tournament and multiplayer solutions, online gaming as well as Octavian’s ACP Online Casino Management System and Admiral’s Absolute Vision video content delivery system.

Also on show will be AGI’s latest cabinet highlight, Dominator. This cabinet will celebrate its US premiere featuring a wide range of single games and multi-game mixes based on the serverbased ready platform Novo Line Interactive as well as a selection of Octavian single games. The machines will be connected to the AmazeLand Community Jackpot as well as the mystery pro-

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IGT / KONAMI GAMING / NOVOMATIC GROUP OF COMPANIES G2E Las Vegas

G2E HIGHLIGHTS: IGT DOUBLEDOWN PARTNER PROGRAMME KONAMI PODIUM MONUMENT | TITAN 360 NOVOMATIC DOMINATOR CABINET | OCTAVIAN CASINO MANAGEMENT KONAMI GAMIING

Konami drives business forward

ic brings as Vegas

he G2E gaming show 2013 with a vast stage that will ighlights and the support acts of various international gressive Magic Joker Jackpot.

Further cabinets such as the NovoStar SL slant top, the Novo Super-Vision and the Super-V+ Gaminator III will present a variety of multi-game compendiums such as the Super-V+ Gaminator and Premium-V+ Gaminator mixes and single games based on Coolfire II. Among them are also themed banks of machines featuring the Marilyn series of single games in conjunction with the Marilyn Jackpot; Ancient Wilds and Ancient Treasures together with the Ancient Giants Jackpot; and a bank of Super-V+ Gaminator USmulti-game mixes together with the Novomatic Reel Tournament.

Also on display will be a Novo Line Novo Unity II multiplayer arena of NovoStar and Novo-Bar terminals. The games featured will be Novo Multi-Roulette with one automated Roulette wheel at the centre of the arena plus the fully animated (‘Flying’) versions of Roulette, Double Action Roulette, Baccarat, Black Jack, Texas

Hold’Em Poker, Poker 3, Bingo and Sic Bo as well as a range of video slots - all available on each of the terminals.

Finally, the innovative Pinball Roulette will also be staged in Las Vegas in single-zero and doublezero versions. This single player Roulette terminal combines the attraction of the traditional Roulette in unique style with the amusement factor of a pinball launching mechanism.

Jens Halle, managing director AGI and CEO Novomatic Americas, commented: “We anticipate G2E with great expectations. Over the years this show has turned out to be one of the few trade events that attract a broad international expert audience - not only from all the Americas but also from as far afield as Asia and Europe. Especially for Novomatic Americas, but also for the entire Novomatic Group, it is an event of major importance.”

STAND NUMBER: 2654

G2E 2013 in Las Vegas will see Konami Gaming showcase its largest progressive machine, a new addition to its Podium family, as well as its innovative casino management system, which helps drives business forward.

onami Gaming will showcase the Podium Monument, Titan 360 and innovative casino management system Synkros at the 2013 G2E tradeshow.

The Podium Monument is the newest addition to Konami’s Podium family. It features a 22ins touch screen LCD for base games and a large 32ins vertical top box to display progressive levels. The top box has bright attractive mode lighting that synchronises with game play. Quick Strike Quad is one of the first titles that will be released on the Podium Monument. It’s a KP3 video theme that includes a four-level progressive. The progressive feature is randomly triggered and the more a player bets, the higher the chance of hitting the progressive. Additional game themes that will be featured on the Podium Monument are Snow Stars: White Winter, Snow Stars: Wild Winter and Rock Around the Clock: Doo-Wop Dudes.

Titan 360, Konami’s largest progressive machine will be showcased at G2E. The Titan 360 is a large bonus game extended above eight Konami video slot machines. It is compatible with Konami’s standard 30-line video game themes. For an additional 20 credit wager per bet level, players are given the opportunity to enter the Rise to Wealth bonus when a lock symbol appears on reel one and a key symbol appears on reel five. The amount available to be won in the Titan 360 bonus event is determined by the bet level wagered by the player when the bonus is triggered. During the Bonus Ring, the ball can land on a dollar amount or a color that corresponds with a progressive prize. With its big, bright and exciting features, Konami is expecting the Titan 360 to draw attention in the booth.

Synkros is Konami’s casino management system. It is best known for its advanced capabilities of real-time analysis, reliability and innovative marketing

K

tools. Synkros offers True Time Tournaments, a unique approach for system-delivered community gaming. Patrons can now play tournaments at their own convenience with a player on demand format or in a group-start format.

It also offers SuperSeries, a multilevel, multi-themed, floor wide bonusing tool. SuperSeries was designed to increase time-ondevice, visitation rates and player card signups.

STAND NUMBER: 1154

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GTECH / MERKUR GAMING

Guide

G2E Products

G2E Las Vegas

G2E HIGHLIGHTS: GTECH SPHINX 3D | AXISS CABINET MERKUR GAMING NEW SLANT TOP | VLT MANAGEMENT SYSTEM GTECH

GTech to unveil ‘industryunique 3D experience’ in Las Vegas GTech will launch a new Sphinx 3D game with colour-fidelity, brightness and 3D depth on the brand new Axxis cabinet at the Global Gaming Expo in September.

Tech, together with its gaming product brand Spielo, is hoping to bring gaming to life at the Global Gaming Expo (G2E) in September, with the launch of Sphinx 3D, an Egyptian adventure featuring glasses-free True 3D on the brand new Axxis cabinet.

Sphinx 3D is the first title in GTech’s new True 3D prod-

G

uct line, which uses a glassesfree 3D display designed exclusively for GTech for the gaming industry by SeeFront. It uses a unique, patented autostereoscopic technology with integrated eye-tracking to make images jump off the screen or stretch into infinity in high resolution. Without wearing special or additional glasses, players can explore the onscreen vistas, change viewing angles without disrupting the 3D experience, and view wilds stacked on the z-axis that appear to rotate toward and jump out at them.

A five-reel, 30-line game, Sphinx 3D features an actionpacked base game and a total

MERKUR GAMING

Merkur aims to turn up the heat with new products Gauselmann Group affiliate Merkur Gaming is set to exhibit a range of new innovations for players and operators alike at Global Gaming Expo 2013.

2E will see Merkur Gaming exhibit an innovative new slanttop cabinet. Filled with stateof-the-art technology and boasting new features and a sleek ergonomic design, Merkur Gaming says the new slant-top provides the future of gaming cabinets today, and the company is sure it will be a big hit with players.

With over a decade of experience as an operator of VLTs worldwide, Merkur Gaming is well placed to innovate with a completely new management tool for

G

the VLT market. The new VLT tool has been developed for optimum efficiency and robustness in daily management, but it’s also scalable and adaptable, thereby fulfilling the needs of a growing operation.

Alongside the new slanttop and VLT management system, Merkur Gaming will showcase other leading cabinet models, a range of new games, and the well-regarded and reliable Merkur Cash Dispenser. Additionally, online game platform specialists Edict will present a number of online gaming solutions.

44 | casinoreview September 2013

All this and more, it seems, on a stand in excess of 600 square metres.

“We feel this year’s G2E will be particularly special for Merkur Gaming,” said Daniel van Marissing. “We continuously strive to add innovation and new games to our range, and this exhibition will be no exception.

Our new slant-top will be the star attraction, and we’re thrilled to have the opportunity to share it and our other hot games for local markets with everyone at G2E 2013.”

STAND NUMBER: 2665

of seven bonuses: two in the base game and five dedicated bonuses that players can select as part of the Sphinx Bonus selection.

As well as what it describes as an ‘industry-unique 3D experience’, the new Axxis cabinet is designed to create a sense of personal space, maximise player comfort and immerse the player in the game with a state-of-the-art multimedia chair including rumble, surround-sound, and sliding mechanism for easy entry and adjustable player seating position for ultimate comfort.

The high-resolution button panel with the latest touchscreen technology and full-

scale illumination add to the premium feel of this package.

And with an iconic illuminated sphinx head topping the unique cabinet, it stands out on the casino floor, making it eyecatching in several ways.

Sphinx 3D is only the first product to be launched out of a full complement of cabinets, games, systems, and software, including products for both land-based and online gaming operations.

G2E 2013 will also mark the first time that Spielo will appear as a product brand under the new GTech corporate brand.

STAND NUMBER: 1265

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ABBITAI CASINO EQUIPMENT / ADVANTECH-INNOCORE / CASINO TECHNOLOGY

G2E Products

G2E Las Vegas

G2E HIGHLIGHTS: ABBIATI GAMING TABLES | WINNING NUMBER DISPLAYS ADVANTECH-INNOCORE XEON GAMING BOARD CASINO TECHNOLOGY PENTHOUSE SLOTS | GRAND PIANO MULTI-PLAYER ADVANTECHINNOCORE

AdvantechInnocore set to unveil world first at G2E

A

ABBIATI CASINO EQUIPMENT

Abbiati plan on pulling off an Italian job in Vegas G2E will deliver a key opportunity for Italian manufacturer Abbiati Casino Equipment to demonstrate how its products have continued to improve over the years, using new innovative materials, designs and applied technologies. rovider of casino chips, plaques and table game equipment worldwide, Abbiati Casino Equipment will demonstrate its new innovative products during the G2E 2013 show, which will be held at the Sands Expo & Convention Centre in Las Vegas September 24-26.

“The main goal this year will be to attract as many new clients as possible from all regions in the Americas, especially from Latin America,” said CEO Giorgio Abbiati. “Our company has exhibited at the Las Vegas show for many years as we find this international show an ideal place to present our products and services to the decision-makers from many different areas and markets.”

The comprehensive offering of Abbiati products

P

on the company’s stand will include all the mainstays from the Italian manufacturer, including gaming tables, layouts, and American roulette wheels with a selection of Winning Number Displays, as well as a wide range of accessories.

During the show, Abbiati will present its brand new line of casino currency, including innovative new chips and plaques with improved designs, new materials and multiple security features. A few years ago, Abbiati gained Nevada Gaming Board approval to supply chips, plaques and jetons to Nevada casinos.

“Our high-end products with a wide variety of innovative security features have contributed to winning some very important orders in the Asian market, where the Abbiati company has

seen very significant expansion during the last year,” said Giovanni Abbiati, president of Abbiati Casino Equipment.

The company’s stand will feature a Baccarat RFID table developed specifically for the G2E show, dedicated especially to the Asian players. Fitted with a Perfect Pay Table Network platform, this table - exclusively designed and manufactured for Abbiati’s partner Walker Digital Table Systems - will demonstrate the Italian manufacturer’s leading position as 13.56MHz PJM RFID technology integrator and supplier. “Tables integrated with RFID technology help casino operators reduce labour, eliminate dealer errors and player fraud while increasing game speed and making huge leaps forward in business

intelligence and operating efficiency,” said Giorgio Abbiati.

He added: “The Baccarat RFID table has been designed to accommodate any optional professional equipment for dealers, such as shuffling machines, intelligent shoes, electronic displays as well as the full range of RFID-enabled technology.” Alongside it, Abbiati will demonstrate its line of chips and plaques enhanced with 13.56MHz PJM RFID technology.

The manufacturer will also exhibit a high-end and unique modern style Black Jack table designed especially for its partner PokerTek. The table will host PokerTek ProCore serverbased multiplayer platform.

Among other products to look out for, Abbiati will be presenting its new Contem-

mix. This includes the latest versions of the luscious Penthouse Slots in a variety of branded cabinets and a grand-piano multiplayer station, all of which will be showcased on Casino Technology’s stand this year.

Celeron, through Core i3, Core i5, Core i7 and up to Xeon CPUs. As the latest member of the field proven DPX-S Series from Advantech, the DPX-S435 is backwards compatible with previous models giving existing customers an easy migration path to the fastest technology available.

The new DPX-E130 is a new product targeted at the slot machine market in Italy and designed to be compliant with the upcoming new technical regulations in that market.

The DPX-S435 and the E130 support Windows 7, Windows 8 and embedded Microsoft operating systems as well as Linux.

STAND NUMBER: 4354

STAND NUMBER: 3850

CASINO TECHNOLOGY

Casino Technology presents ‘winning slot mix’

A

n enthusiastic Casino Technology will be showcasing its latest products at G2E this year.

The company is eager to meet those attending the global gaming event once again at the Sands Expo & Convention Centre in Las Vegas as it presents a winning slot

46 | casinoreview September 2013

porary Wheel for roulette, which incorporates upgraded patented invisible laser technology (Class 1A).

The wheel is made of alternative materials, which are able to guarantee casino operators top quality and security. The new wheel is competitively priced and with no visible evidence of the laser sensor in the ball track. It has been a great success throughout the year and Abbiati is looking forward to showcasing it again in Las Vegas.

“G2E show is a great opportunity to demonstrate how Abbiati products have continued to improve over the years, using new innovative materials, designs and applied technologies,” said Terry Clarke, commercial director.”

dvantech-Innocore is ready to unveil the world’s first Intel Xeon gaming board at Las Vegas G2E 2013. The DPX-S435 is the first Xeon capable motherboard for the gaming industry. It features the very latest fourth generation Intel Core architecture CPUs up to and including Intel Xeon CPUs. Best in class CPU performance, the DPXS435 supports a range of price and performance from dual core

STAND NUMBER: 3827

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EURO GAMES TECHNOLOGY / GLI / JCM GLOBAL

Guide

G2E Products

G2E Las Vegas

G2E HIGHLIGHTS: EGT PREMIER MULTI-4 | KENO UNIVERSE GLI REGULATORS ROUNDTABLE JCM GLOBAL IVIZION BILL VALIDATOR | DYNAMIC NETWORK APPLICATIONS JCM GLOBAL

GLI

JCM evolution forms focus at G2E

GLI accommodating demand for its services

G

a s e-wallets, carrying cash, player club cards and promotional offerings electronically in a secure, password-protected environment.

JCM will also show its Sentry 2 bezel that communicates in up to four languages; its award-winning PayCheck 4 and HSVL thermal printers; the ICB 2 intelligent cash box; BlueWave upload tool; and the iPRO and iPRORC, UBA, TBV and Vega and Vega-RC bill validators.

aming Laboratories International (GLI) has been providing the global gaming industry with independent testing, inspection and certification services for almost 25 years. The company offers independent evaluation and certification of casino gaming technology, devices and systems and provides network and information security assessments.

Today, GLI is the only global organisation of its kind to hold US and international accreditations for compliance with ISO/IEC 17025, 17020 and Guide 65 standards for technical competence in the casino gaming industry. For more than a year, GLI has been on a hiring push to accommodate demand for its land-based, lottery and online gaming testing services. Additionally, it has added a Professional Services Division, which oversees all aspects of IT-related services, including testing, project management and audit.

At G2E this year, GLI will provide information on its worldfamous Regulators Roundtable discussion, part of its exclusive and world-renown GLI University training programme.

STAND NUMBER: 3634

STAND NUMBER: 4431

Delivering innovative technologies that help casinos do business better, smarter and faster on the casino floor, JCM Global will prove its worth with a diverse range of products at G2E. this year his year at G2E, JCM Global will show its revolutionary products that help operators evolve their business to be even more competitive.

The evolution begins with the award-winning iVizion bill validator, which is further evolving with a set of bundled enhancement tools that empower casino operators to do much more than they ever thought possible with peripheral components, and in real time. iVizion’s enhancement tools, Dynamic Network Applications (DNA), was recently named a Top 20 Most Innovative Gaming Technology Product and empowers operators with real-time reports and alerts, and can enable regulators to instantly verify peripheral devices, software versions, view reports and more.

JCM’s iV8 table game bill validator

T

was developed specifically for the high-volume table game marketplace.

Unlike manual counting at the table, iV8 counts and validates currency at eight notes per second, and can instantly and dramatically increase the number of games played per hour.

Operators can evolve their marketing messages with the power and flexibility of JCM’s wide range of digital media options. From ePosters to large format displays and a new tile display format that allows operators to configure custom display designs, JCM’s digital displays help operators communicate in a more compelling and dynamic media with customers throughout the entire operation.

JCM’s Mobile Wage Wallet (MW2) continues to evolve with new and more powerful capabilities that allow customers to use their mobile phones

EURO GAMES TECHNOLOGY

EGT ‘ready to give more’ at the Vegas show Euro Games Technology has prepared a rich portfolio of new products for G2E, Las Vegas this year, to enable its customers and players to win more in every aspect, the company said. ith the presentation of Euro Games Technology’s (EGT) new multigame Premier Multi-4, featuring 45 games, the company will introduce several new video slot games with various mathematic models, European and American video roulettes, a Keno Universe game and its newest 4 Of A Kind Double Double Bonus Poker. All titles are arranged in different categories, which allow the players to easily choose among their favourite game types.

The upright cabinet Premier P-24/24 Up, driven by

W

50 | casinoreview September 2013

the platform Exciter II, will be shown on EGT’s stand at G2E. In order to provide maximum comfort to the players, the company has concentrated on ergonomic design.

The Premier P-24/24 Up features a unique appearance with LED-illumination alongside the cabinet, dynamic OLED keyboard and two high-resolution 24ins widescreen LCD-TFT monitors.

EGT’s Cat 4 Cash Multilevel Progressive Jackpot System, which stands out with its jackpot panel and entertaining animations, will

also be in the spotlight. It has four levels of progressive jackpot and features two multigames, which include some of EGT’s most popular titles.

Another product that will be exhibited is the Stork Multiplayer Terminal, which is flexible as the arrangement and number of terminals can be individually configured according to the specific gaming floor. In addition, EGT is offering a brand new multigame software, which allows simultaneous play of up to three roulettes together with blackjack or

bingo games.

One of the company’s main goals is to transfer its expertise in land-based games into online gaming. At G2E, the company will present innovative Multi-Level Mystery Jackpot, which can be organised as a common jackpot for several casinos at the same time. In addition, its online games are structured like a multigame, so that players can select their favourite games as easily as they do with the land-based ones.

STAND NUMBER: 3165

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INSPIRED GAMING / LT GAME / TCS JOHN HUXLEY

Guide

G2E Products

G2E Las Vegas

G2E HIGHLIGHTS: INSPIRED BETBOX BET MANAGEMENT SYSTEM LT GAME LIVE MULTI GAME SYSTEM | AIRLINE TERMINAL TCSJH ELECTRONIC GAME TERMINAL | SUPERNOVA BONUS SYSTEM TCS JOHN HUXLEY

INSPIRED GAMING

It’s all about innovation for TCS John Huxley

Inspired to showcase full product range at G2E

TCS John Huxley are back on the G2E stage in full force this year with innovation top of its agenda.

CS John Huxley will be demonstrating new innovations that underpin its commitment to developing products and services that focus on operator and player requirements. That’s its agenda at this year’s G2E and the company has a determination to see that hrough.

Cath Burns, Group CEO, commented: “At last year’s G2E we were able to share with our customers, plans for product development, innovation and growth. We’ve spent the past 12 months investing in our infrastructure, our products and our people. We’ve strengthened our team in the US by hiring Todd Cravens to head up The Americas and drive our business forward, as well as a continued commitment to develop

T

key products for the region. At this year’s show we will be demonstrating how all this is being delivered.”

After completing a global review of the product portfolio, the company was able to analyse strengths and weaknesses. The portfolio is now split into traditional and technical products as TCSJohnHuxley offers products across both segments from tables, displays, cards, chips, chippers to table bonusing and realtime game optimisation systems. In the Americas, the core products are wheels, tables, chippers and displays and there is a large emphasis on making sure they remain the leader in this market. At the same time, there is a commitment to developing new prod-

I

nspired Gaming Group will participate in G2E Vegas with its full product range of virtual sports and new BetBox Bet Management System. The company will also be showing its VLT products and platform, slots games, and electronic table gaming products.

Luke Alvarez, CEO and founder of

ucts in house to compliment what they do.

Todd Cravens, CEO for The Americas, added: “We offer one of the most diverse and high quality product portfolios covering traditional and technical solutions, along with an extremely experienced and knowledgeable team. We believe this gives us a compelling story for our customers. We’re customer focused and committed and this is key to what operators are looking for in a vendor partnership.”

At G2E, visitors will see all

the core products and Electronic Game Terminals, along with new technology such as Supernova Bonus System, Gaming Floor Live and Xia Tablet. Another feature at the show will be the US launch of the Supernova platform.

TCSJohnHuxley has reported success with this product in South Africa and is currently on trial in Central and South America, with initial feedback showing operators like the flexibility of the system and the impact to the bottom line.

position and angle of the screen can be adjusted freely according to the preferences of the player.

The Intelligent Cash Access/Cash Redemption Solution is another recent release. Although it functions similarly to regular cash redemption machines, the Intelligent Cash Access has added benefits that set it apart from its counterparts, including reduced security risks, lower costs and fewer errors as cash is not handled manually.

In addition, two more new products - the E-baccarat table and E-Mahjong table will be introduced by LT Game at G2E.

Inspired Gaming Group, commented: “This year’s G2E Vegas show is focussed towards educating more operators about the benefits of our virtual sports and the ease of integration. The products are live all over the world and are popular with players across all channels, and so we see a lot of potential to expand the virtual sports offer in to new territories.”

The BetBox system enables street operators and casinos to broadcast a constant stream of new virtual sports events and numbers games, and to take bets over the counter. At G2E, visitors will be able to try the system themselves at Inspired’s BetBox Bar, which will be set up with live races, complimentary betting coupons, a daily competition and prizes.

Casinos can also choose to have Inspired’s Virtual Sports as a simplified electronic table game via its Sabre Synchro product, which allows different electronic table games to be played at the same time.

G2E visitors will be able to play more than 20 hits from Inspired Games including Diamond Goddess – a new game from Inspired’s Freespins+ game family, which includes a freespins bonus and Fortune Spins feature. Diamond Goddess will soon be available for Colombia, Mexico, Italy, and for online and mobile platforms.

Inspired will also showcase its Open SBG/VLT Core platform and a variety of international VLTs including the new Blaze for Mexico and the Machete for Colombia.

STAND NUMBER: 4454

STAND NUMBER: 4934

STAND NUMBER: 4437

LT GAME

LT Game aims to please For LT Game, G2E 2013 is an opportunity to display all the hybrid, innovative and invigorating products that the company has to offer. etween showcasing the latest products and meeting both current and new clients at G2E 2013, LT Game ultimately aims to provide entertainment to players.

Its star product, the Live Multi Game System, is well known and patented in Macau, Asia-Pacific and PCT (Patent Corporation Treaties) countries. It involves live dealers

B

with multiple tables and has a terminal-based multi-game selection system, which makes simultaneously playing several games possible. This hybrid product is dedicated not only to maximising the pleasure of gaming for players, but also to providing them privacy, which is not normally seen at regular tables. In addition to the advantages brought

52 | casinoreview September 2013

to the player, it also benefits casino operators by decreasing labour costs, raising game productivity and improving game security and reliability.

The Airline Concept Betting terminal, one of LT Game’s latest releases, offers an exclusive first-class experience. The wireless touch screen makes installation and removal extremely simple, while the

Technology that inspires

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For nearly 60 years, JCM Global has been creating leading and award-winning transaction technologies that have evolved entire industries and inspired businesses to be better, smarter and faster. Now, there is a new generation of technology from JCM to inspire you, including even more advanced bill validation, advanced printing capabilities, real-time controls for the entire operation, and digital displays unlike anything youâ&#x20AC;&#x2122;ve seen before. A world of inspiring technologies, all from one company.

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GPI / MEI / STYLGAME

Guide

G2E Products

G2E Las Vegas

G2E HIGHLIGHTS: GPI B&G PREMIUM PLAQUE | RFID TRAY INVENTORY MODULE MEI SC ADVANCE | EASITRAX SOFTCOUNT STYLGAME ROYAL STOOL | POKER DIVISION TABLE LINE GPI

MEI

It’s all about innovation for GPI as Vegas nears

Double focus for MEI at G2E

Gaming Partners International will showcase a full suite of B&G, Paulson and Bud Jones currency, table game essentials, custom gaming furniture and RFID products and solutions at the G2E 2013. The company will highlight its latest developments in its B&G line of currency, RFID solutions and Paulson line of cards. et to be one of the main currency attractions at Gaming Partners International’s G2E booth is the new B&G Premium Plaque, which utilises a cutting-edge design process that takes plaque customisation to a higher level. The aesthetic materials used in this plaque can be cut to form custom logos and intricate shapes, while the logos and shapes can be filled in with more material, usually different in color and texture to create a fully custom plaque.

Also new to the B&G line of currency is the J3. Like the J2, the J3 integrates the easy-handling and identification of Americanstyle chips with the aesthetic appeal of a classic European-

S

style jeton. With the J3, customers can expect more edge spot and colour options. More importantly, the J3 is available with both RFID and Electro Magnetic (EM) detection, providing expanded security and authentication benefits. In addition to the Premium Plaque and J3, GPI will introduce new B&G Americanstyle JAV chip designs and new Paulson chip edge spot patterns and colors.

RFID will be another main focus of demonstrations at GPI’s booth, including its new RFID Tray Inventory Module (TIM) and new RFID Plaque Box. TIM provides operators with real-time chip tray currency inventory monitoring directly at the table,

and accurate information about each chip tray’s balance and activity. TIM also helps improve table game productivity by automating critical functions like table openings, closings, and ongoing inventory accounting, eliminating the need for periodic manual rack counts and reducing human errors and game-down time.

The RFID Plaque Box enables increased protection of a casino’s highest value currency at the table, while capturing real-time counting and plaque movement details. With its ability to store and track up to 60 RFID plaques, the Plaque Box is easily installed on the dealer’s side of the table next to the chip tray. For maximum table currency accounting,

continuous evolving process, with regards to the products employed in manufacturing, including filling and upholstery materials. A new material, called Comfort Plus is currently being studied and experimented. Used for padding, it can guarantee a superior level of comfort compared to other padding materials employed up until now in seating.

STAND NUMBER: 2224

STAND NUMBER: 4041

the Plaque Box can be installed in conjunction with either our RFID single or dual chip tray.

In addition to its new currency and RFID options, GPI will feature its new Paulson plastic poker card sets. The poker card sets are competitively priced and offer the classic snap and feel of traditional paper stock cards, with the added benefit of being tear, crease and scuff resistant.

The company’s custom manufacturing capabilities will also be on display, complete with essential products required for a traditional live table game, including Paulson playing cards, dice, roulette wheels, table game accessories and more.

STAND NUMBER: 4441

STYLGAME

StylGame does Vegas in comfort Casino seating manufacturer StylGame will present its extensive range of seating innovations at G2E 2013, which are the result of ergonomic research carried out specifically for the gaming industry by the company. tylGame is dedicated to project designing and manufacturing highly technological interactive seats, customisable in its design and use of materials, based on customer’s requirements. At the next G2E show, the company will present two models.

The first seat features an air-controlled system that progressively relaxes muscles and has a loud speaker audio system incorporated. The second allows movement/inclination that can be oriented in all directions, with a compact motorised system incorporated in the seat itself, making it an alternative to the traditional motorising systems. The audio

S

sound on these seats is obtained through innovative technology in this field through vibrating diffusing systems for an omnidirectional sound perception.

StylGame has recently added to its line of products the Poker Division table line, exclusively dedicated to the Texas Hold’em field.

The most important feature that distinguishes the tables from the Poker Division line is the playing panel with interchangeable patented layout, which allows the layout to be replaced and reused easily and quickly.

In 2008, StylGame initiated an innovative ergonomic research, which was the first study to be con-

54 | casinoreview September 2013

ducted specifically with regards to the issues linked to the use of slot machines by players.

With its Royal Stool line of products, the company has progressively solved all issues highlighted by the research, obtaining, as a result, the integrated ergonomic system Play in Comfort, available in Basic and Top version. This is a revolutionary patented system that significantly contributes in increasing time on device and coin in for slots, considerably improving the comfort for the player and allowing them to fully enjoy the playing experience.

The research that has resulted in the Play in Comfort system is a

A

t G2E this year, MEI will focus on two themes: implementing cash management solutions, and reducing the overall cost of operation. The introduction of SC Advance and accompanying suite of tools, allow operators to leverage MEI technology from the slot floor to the soft count room.

SC Advance evolved from the Cashflow SC note acceptor - applying new technology and market knowledge to make a great product even better.

The addition of Easitrax Soft Count has created a comprehensive software/hardware system that offers process efficiencies and provides the foundation for a preventive maintenance program. Since being introduced in 2008, Easitrax has typically provided a ROI in less than one year and been installed in over 100,000 games in the US alone.

Both SC Advance and Easitrax have been designed so operators can easily upgrade existing equipment. And two new products - Web Easitrax and PPM Advance - again illustrate MEI’s commitment to continuous improvement and the seamless upgrade to new technology. Web Easitrax can create customised reports and set security settings for global data access. The PPM advance offers technicians new features, including a visual display and a potential upgrade to Bluetooth functionality, to manage firmware and implement best in class maintenance procedures.

www.egt-bg.com

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News

VIDEO SLOTS

Euro Games Technology came to an agreement for future installations with ‘some of the most influential casino brands in the region’ at the Wild Coast Winter Games in South Africa, and announced that the Hippodrome in Buenos Aires has acquired its video slots and mystery jackpot.

EGT debuts successfully at WCWG

uro Games Technology (EGT) recently made its debut at the Wild Coast Winter Games 2013 in Port Edward, South Africa. Together with Custom Gaming Solutions, EGT distributor in South Africa, the company presented its most recent products - the sophisticated cabinet P-24/24 Up, the Stork multiplayer terminal and Cat4Cash Multilevel Progressive Jackpot System.

The upright cabinet P-24/24 Up features an elegant design, highlevel ergonomics and advanced technological characteristics. The branded Premier series software runs on the Exciter II platform and offers a number of games, includ-

E

ing card games, roulette games and Keno. The Stork multiplayer terminal scores with multifunctionality on many levels, and features compatibility with both live roulette wheels and automatic wheels combined with additional entertainment opportunities in the form of bingo and blackjack games. In addition, the arrangement and number of the Stork terminals can be individually configured according to the specific gaming floor. The Cat4Cash progressive jackpot is a multilevel jackpot system with four levels of progressive jackpot. An eye-catching jackpot panel attracts the players’ attention with a clear presentation of the jackpot

levels and an entertaining animation shown on a high quality 40ins LCD - TFT display.

“We are glad for being a part of WCWG 2013. Our products drew the visitors’ attention and the EGT booth has been visited by the largest casino operators in South Africa. I am glad to say that we have come to an agreement for future installations with some of the most influential casino brands in the region,” commented Stanislav Stanev, EGT director sales and marketing.

EGT recently announced another agreement when the company’s wide-screen Vega Vision+ Upright cabinets and Vega Jackpot System were installed in the

Hippodrome de Palermo in Buenos Aires Casino Club.

The latest Multigame mixes together with the three levels of absolute Mystery Jackpot, offer the Casino Club’s players a new level of entertainment during game play. The large library of game types features five to 100 lines games, multi-ways winnings and a lot of different bonus features. The players will find a variety of popular titles like Burning Hot Plus, Grace of Cleopatra Plus, 20 Super Hot Plus, Rise of Ra II, Fujiyama, 50 Horses, Aztec Glory, plus many more.

The EGT products contribute to the exclusive atmosphere of the slot machine island in the Hippo-

drome. The sophisticated Vega Vision Upright cabinets feature elegant and comfortable design, RGB LED toppers and hi-fi stereo sound. The Vega Jackpot System highlights three levels of Mystery Jackpot and a 40ins dual-sided Jackpot panel with illuminations.

“A goal was reached. Having our machines in the largest and most beautiful slot casino in Buenos Aires City and working together with the hugest slots and live casino operator in Argentina and Latin America is a great opportunity for EGT to strengthen our positions and to improve our market presence,“ said Kateryna Podimska, the president of EGT Argentina.

PEOPLE

GLI appoints gaming expert as development rep for Oklahoma

G

aming technical consulting and independent certification laboratory, Gaming Laboratories International (GLI), has named longtime gaming expert Joseph Cox as the company’s new development representative in

Oklahoma.

In his position, Cox will oversee GLI’s tribal gaming development efforts in the Oklahoma area. Cox will be based in Tulsa, putting him on the ground with tribes throughout the region.

“Cox’s depth of expe-

56 | casinoreview September 2013

rience with a major supplier coupled with his direct experience interacting with operators will benefit our clients as well as our other team members,” said GLI director of development Michael Price. “We are also excited to have him

stationed directly in Oklahoma where he will be able to quickly respond to client needs throughout the State and region.”

Cox has a long history in gaming, dating back to when he began his career at International

Game Technology. Most recently, he served IGT as account manager in the Oklahoma market, where he worked closely with tribes throughout the state, consulting on its gaming operations relating to both games and systems.

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CASINO TECHNOLOGY / EGT / GLI / MGS Supplier News: jw@sjc.co.uk

G2E PRODUCTS GUIDE 42-55 SUPPLIER NEWS 56-65 B2B LISTINGS 66-71 SLOTS

Casino Technology expands reach Casino Technology products are to reach a range of new locations after the company successfully showcased a wide variety of its products at the Peru Gaming Show recently. asino Technology and its exclusive representative in Peru, Transatlantic Gaming, demonstrated high class and full suitability to local market requirements at yet another gaming show in Lima, Peru.

For the first time, the company presented to Peruvian cusotmers the full extension of the four-level Mystery Jackpot Fusion series with its full variety of available themes: MotorMania, Wonders of the World Penthouse Slots and Gamopolis - The City of Games.

Among the highlights at the company’s showcase were Sensa Plus and Tamgra Touch cabinets, accommodating the latest multigame series, including Gamopolis21 and Gamopolis22, launched earlier during the year. Following their success, the new 15-game versions Gamopolis25 and Gamopolis26 were presented for the first time at the Peru Gaming show. Also on the stand was the premium product Penthouse Slots, introduced in a multigame set of five games.

One of the best performing proven multigames, Gamopolis19, as well as the recently launched Gamopolis16 were presented in the new cabinet from the economic range 6400 Plus and in the classic Gemini 6639, which has gained great popularity on the local market.

The great interest in the Casino Tech-

C

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nology brand during the show, represented by TransAtlantic Gaming, not only led to affirm commercial relations, but also significantly enlarged its range of clients, granting numerous new installations. As a result, a large number of Casino Technology products will be bringing fun to many more players and increasing revenues for operators in many new locations in Lima, including important cities such as Arequipa, Chiclayo, Pucallpa, Huánuco, Talara and Huaral, just to name a few.

EXHIBITION

Macao Gaming Show calls out globally

T

he Macao Gaming Show (MGS) promotion campaign began in earnest in July, targeting the global gaming industry as well as Asian gaming industry executives. MGS is currently recruiting conference speakers, exhibitors and buyers from the Asia Pacific region and around the world before the event takes place November 14-16.

It was recently announced that the con-

ference at MGS would be known as the Macao Gaming Summit, the theme for which this year is ‘Capitalising on Asian Gaming Growth’. Coorganised by the International Masters of Gaming

Law (IMGL), the summit will take place on November 14 and 15 and will see speakers from the worlds of gaming regulation, casino operations and academia discuss opportunities and regulatory issues in the region. Other possible topics include gaming technology, junket operations, industry social responsibility, gaming education, gaming products and services, intellectual property and responsible gaming.

MEI has redefined expectations of note acceptors yet again with SC Advance. Enhancements were driven by customer requests to improve upon core measures of performance--acceptance, speed and security---and do so in a manner that is backwards compatible with the existing installed base.

By maximizing the number of street-grade notes accepted, while simultaneously increasing the security against counterfeit notes, the MEI SC Advance is a step forward on the most important measure... operator profitability.

Learn how to specify cashboxes in your property that fill up faster than ever before.

Stop by booth #4041 during G2E or call +44 (0) 118 938 1100 to schedule a SC Advance demonstration.

Proven performance.

Increased profits.

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MEI is ISO 9001:2000 certified. ©2013 MEI. All rights reserved.

September 2013 casinoreview

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ALFASTREET / BALLY TECHNOLOGIES

News

Peru Gaming Show

PERU GAMING SHOW: THE 2013 EXPO ATTRACTED 3,000+ VISITORS TO LIMA; A 33% INCREASE ON LAST YEAR. THE INTERNATIONAL GAMING CONFERENCE, ALONGSIDE, DREW IN 600 DELEGATES. ACQUISITION

SYSTEMS

Bally Technologies implements systems in New Mexico Bally Technologies has implemented a range of innovative systems at The Downs at Albuquerque in New Mexico, allowing operators to enhance their offering and giving players new ways to win.

ally Technologies has installed iView Display Manager (DM) Elite Bonusing Suite (EBS), and a host of other innovative systems solutions at The Downs at Albuquerque in New Mexico.

“Our players will be thrilled to experience these new tools on our casino floor. Our mission is always to provide a top-notch entertainment experience and providing players with additional ways to win and exciting floor-wide bonusing events certainly help us continue to meet that goal,” said The Downs at Albuquerque chief operating officer Scott Eldredge. iView DM is backward compatible on most gaming devices with a touch-screen display and provides a way for casino operators to present self-service player-

B

account access, marketing messages, and secondary bonus games on the main game screen – without interrupting play.

The casino operators will use EBS to add excitement across their iView network using player-centric, realtime interactive promotions such as Virtual Racing, U-Spin Bonusing, and DM Tournaments.

EBS, when combined with iView DM, adds new levels of excitement and anticipation to the slot-play experience. The EBS applications deliver floor-wide, personalised promotions, second-chance-to-win events, and the ability for players to earn valuable rewards - all without interrupting play on the base game.

These interactive solutions enable players to spin

Acquisition waiting period expires for Bally

T wheels, select and root for their favourite contestdriven car or horse, get instant rewards on their birthday, and participate in instant floor-wide slot tournaments. EBS applications have been proven to increase coin-in, carded play, new card signups, and time on device at casinos across North America.

The Downs at Albuquerque has also added Bally’s innovative SDS slotmanagement system and CMP player-tracking sys-

tems. The casino will utilise Bally’s CoolSign media-management solution and install the state-ofthe-art Promotional Kiosk application across the gaming floor.

“These tools will provide The Downs with a great return-on-investment, while giving their loyal players a fun gaming experience that will keep them coming back to the casino,” said Bally Technologies’ vice president of systems sales Tom Reilly.

he applicable waiting period in relation to Bally Technologies’ proposed acquisition of SHFL Entertainment expired on August 26, with no action by the Federal Trade Commission or the Department of Justice.

Completion of the waiting period satisfies one of the conditions required to finalise the acquisition. The transaction is still subject to approval by SHFL's shareholders, required regulatory approvals, and certain other customary closing conditions. The transaction is not subject to a financing contingency and Bally has obtained commitments for a new US$1.1bn term loan facility to finance the acquisition of SHFL.

EVENTS

Alfastreet will be back: with a return to G2E Asia confirmed Following a one-year break, manufacturer of multi-player electronic gaming instruments Alfastreet is returning to G2E Asia in 2014, vowing to ‘remain loyal to the event for many years to come’.

F

ollowing a one-year break, Alfastreet Gaming Instruments will join more than 150 exhibitors at next year’s G2E Asia. The 2014 event will take place May 20-22 at the Venetian Macau in Macau, People’s Republic of China Courtney Muller, senior vice president of Reed

Exhibitions, commented: “We are excited to welcome them back to the G2E Asia exhibit floor in 2014.”

The 2014 return of Alfastreet will mark the sixth year that the company has exhibited at G2E Asia since the debut of the trade show and conference event in 2007. The Alfastreet brand is known by the gaming

58 | casinoreview September 2013

industry worldwide for developing products that are easy to use and have a player-friendly interface.

The company’s multiplayer series of products include automated electronic roulette, Alfastreet Live Roulette, and automated electronic dice in various models and configurations.

“This year, we skipped the G2E Asia due to some unresolved issues regarding the display of our full range of the products on the show,” said Albert Radman, sales executive for Alfastreet Gaming Instruments. “After being just visitors to the show, we realised that our absence was greatly noticed among

the operators and other visitors to the show. Due to the positive feedback at the show and the organisers’ willingness to assist in any way possible, we decided to make a comeback in 2014.

“We already confirmed a new stand, which will be bigger than previous years, and we are excited to be

back at this important international show,” added Radman. “The organiser’s representatives were initially very concerned about our absence, and consequently very flexible and helpful in facilitating our comeback to the show. We are now sure we will remain loyal to this event for many years to come.”

FASCINATION is the key.

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MERKUR GAMING | Borsigstrasse 26 | D-32312 Luebbecke | Phone +49 (0) 5741 273 6930 | www.merkur-gaming.com | sales@merkur-gaming.com

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GAMING SUPPORT USA / GPI / UNIVERSITY OF NEVADA

News

Rowen Graigie

ROWEN GRAIGIE: “THE COMMISSION RATE FOR JUNKETS IS A MAJOR DETERMINATION FOR GETTING BUSINESS, AND OBVIOUSLY, PLAY CONDITIONS IN TERMS OF BET LIMITS.” COMMENT 38 FINANCIALS

Gaming Partners show of strength as they work work to increase sales After posting a net loss in its financial results for Q2 2013, Gaming Partners International said it is working to balance production and collaborate with customers to provide new products and increase sales of its offerings.

rovider of casino currency and table gaming equipment Gaming Partners International announced its financial results for the second quarter and six months ended June 30, 2013.

During the second quarter ended June 30, 2013, the company posted a net loss of US$54,000, compared to net income of $1.8m for the second quarter of 2012.

The company reported net income of $0.4m, compared to net income of $3.1m for the first six months of 2012, and said that the decrease in earnings for the second quarter and first six months of

P

2013 was caused by lower gross margins and higher general and administrative expenses.

During the second quarter of 2013, the company earned revenues of $14.1m, compared to revenues of $13.0m. Gross profit for the quarter was $4.4m, or 31 per cent of revenues, compared to $4.9m, or 37 per cent of revenues, in the same period of the prior year.

“As in the first quarter, our results reflect the variability of our global customers' product demands from quarter to quarter,” commented Greg Gronau, not satisfied with our gross GPIC president and chief margins and bottom line executive officer. “We are for the first half of 2013 and

SYSTEMS

“At the same time, we are working to balance production in our manufacturing facilities and to collaborate with our customers to provide new products and increase sales of our current offerings,” he added.

The company also posted revenues of $28.9m compared to revenues of $28.5m and net income of $3.1m for the second quarter of 2012.

Gross profit for the first six months of 2013 was $8.7m, or 30 per cent of revenues, compared to expect lower earnings for $10.2m, or 36 per cent of the rest of the year when revenues, in the same compared to last year. period of the prior year.

EVENTS

23rd education programme for the gaming industry to be held he 23rd annual international Executive Development Programme for the gaming industry will be offered by the University of Nevada, Reno and the University of Nevada, Las Vegas, November 14-23, at Harveys Lake Tahoe, in Lake Tahoe, Nevada. Cosponsored by UNR’s Institute for the Study of Gambling and Commercial Gaming, College of Business and Extended Studies, and

by UNLV’s International Gaming Institute, the programme was led for 23 years

by William Eadington, Ph.D., until his death in February this year.

This autumn, the University of Nevada, Las Vegas has joined with the University of Nevada, Reno to co-sponsor the Executive Development Programme. Co-moderators for the 2013 programme will be industry leaders Bo Bernhard, Ph.D., executive director of the UNLV International Gaming Institute, and Mark Lipparelli, M.S., former chair of the Nevada State Gaming Control Board, member of the Board of Trustees of the University of Nevada, Reno Foundation, president of Gioco Ventures and member of the first EDP graduating class.

T Bonus Box installed in two Canadian casinos

G

aming Support USA has completed its latest BonusBox installation in two casinos located in Alberta Canada: the Century Casino Edmonton and the River Cree Resort and Casino. This marks the first BonusBox installations in Canada.

The casinos each offer a CAD$500 cash prize in the BonusBoxes. With the onset of cashless gaming, players will

undoubtedly welcome the randomly awarded ‘hard cash’ prize money.

“We are very pleased to have our first BonusBoxes installed and operating in Canada and are confident they will experience the same increase in win and time on device as seen by the other operators,” said Don Baugh, CEO of Gaming Support USA. “I’m sure their customers will enjoy playing them as well.”

60 | casinoreview September 2013

Prizes are viewed in the BonusBox and dispensed at the game, allowing operators the freedom to award prizes of various size and value to keep players entertained; from smart phones, jewellery, show tickets or in this case, cash! BonusBox supports property branding and promotions and has fully customisable audio, lighting and background insert.

The only programme of its kind in the world, the nine-day series is designed for upper-level gaming managers, board members, government regulators and gaming professionals in positions of substantial executive and leadership responsibilities. It delivers industry-specific knowledge in intensive seminars, presentations and interactions, and utilises upto-the-minute case-study analysis to examine issues of critical importance to growth, compliance and sustainability.

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FUTURELOGIC / IGT

News

Goeff Freeman, AGA

GEOFF FREEMAN: “THE AGA IS LEADING AN EFFORT TO STREAMLINE THE OVERLY COSTLY AND COMPLEX REGULATORY REQUIREMENTS RELATED TO GAMING MACHINE SHIPPING.” COMMENT 38 SYSTEMS

PEOPLE

IGT expands systems offering in Asia

New additions to IGT’s board of directors

GT has been selected to provide its state-of-the-art sbX system to the The Grand Ho Tram Strip, Vietnam. The deal also marks the first time that a casino in Asia will implement a floor-wide Game to System (G2S) floor, all done in conjunction with IGT’s Advantage casino management solution.

Along with the inclusion of sbX, which creates a path for an opensystem architecture, the luxury resort and casino will take advantage of IGT Media Manager and the

I

IGT Universal Game Adaptor, or UGA, allowing Service Window technology across slots on the gaming floor, including other manufacturers’ games.

“The expansion into Vietnam is a great step forward in the growing Asia market. IGT’s ability to provide properties such as The Grand Ho Tram Strip with a casino floor that is based upon open gaming standards allows for flexibility and forward-thinking innovation in their operations,” said Eric Tom, execu-

tive vice president of global sales at IGT. “Having the ability to provide a better player experience on the floor with personal interaction at the Service Window is a valuable way for the property to differentiate itself from its competitors.”

The Grand Ho Tram Strip will utilise products from across the Advantage product suite, including Table Manager as well as the newly released IGT Rebates and Commission module, developed especially for the junket market in Asia.

“Our selection of IGT’s systems and UGA technology was based upon the company’s long term commitment to innovation,” said Mike Santangelo, COO at The Grand Ho Tram Strip. “We strive to provide our guests with the ultimate integrated resort experience from the moment they enter our property. With IGT as our partner, we are able to provide access to a large game theme selection, and ultimately unparalleled gaming entertainment.”

PERIPHERALS

FutureLogic printer specified

by French casino groups FutureLogic’s GEN2 Universal printer has been selected by Groupe Partouche and Groupe Tranchant, along with several independent casinos, totalling more than 70 casino sites, as the preferred thermal ticket printer for the roll-out of Ticket-In-Ticket-Out (TITO).

A

fter a careful evaluation process, Groupe Partouche selected the GEN2 Universal printer for its TITO roll-out. Another of the largest casino operators and owners in France, Groupe Tranchant, has also specified the GEN2 Universal printer across all its 16 casinos. In addition, several leading independent casinos supported the decision to go with FutureLogic, specifying the GEN2 Universal as their printer of choice due to its

unmatched performance and reliability.

Anette Jauch, FutureLogic’s sales and marketing manager EMEA, commented: “Looking ahead, as operators look beyond ticket printing, the GEN2 Universal offers future-proof connectivity to FutureLogic’s PromoNet promotional couponing solution enabling operators to reward high value new and anonymous players.

“With some of the highest average net wins

62 | casinoreview September 2013

nternational Gaming Technology (IGT) has made two additions to its board of directors.

At the beginning of August Tracey Weber, CitiBank’s managing director, North America internet, mobile and global product was appointed to the gaming giant. Weber has a strong operational background and successful track record leading strategic, industry-leading digital initiatives for both large global companies and small entrepreneurial firms. “I look forward to lending my guidance and experience as support for the activities that will allow IGT to achieve its goal to lead and transform the gaming world,” she commented.

Phil Satre, IGT's chairman of the board, added that Weber’s operational experience in the digital world will enrich the board, helping to guide the company's global convergence strategy and to position it for future growth.

Also appointed to the company’s board of directors recently was Eric Brown, who has held the position of chief operating officer, chief financial officer and executive vice president of Polycom since 2012. Brown commented: “I look forward to contributing my financial and operational expertise as we focus on IGT's expansion around the globe.”

Satre added that Brown’s exposure to international markets and his proven leadership allocating capital towards the creation of shareholder value will be a great asset to IGT’s board of directors.

I

Making its mark further into Vietnam, IGT brings its systems functionality to the brand new The Grand Ho Tram Strip luxury beach resort.

per day of any market anywhere in the world, France is an incredibly competitive and complex market. French casino operators are constantly evaluating new technologies and innovations to remain competitive, and so we have been working hard to help them realise the operational benefits and revenue uplift that comes with the introduction of TITO,” said Laurent Gaubout, owner of LGS Gaming and FutureLogic’s agent for France.

“France is a very impor-

tant gaming market for Europe and for FutureLogic, and the GEN2 Universal printer is a perfect fit for the growing French market and the increasing interest in both ticket printing and promotional couponing.”

Ready for promotional couponing, the GEN2 Universal printer can provide operators with separate and secure processing environments for both TITO and promotional couponing.

Equipped with a 50 per cent larger standard

ticket capacity, the GEN2 Universal printer can also save operators up to 20 refills or US$200 (E150) per printer annually. Further reducing costs, the unit eliminates paper waste by consuming the ticket stack down to the last ticket. The GEN2 Universal printer is server-based ready supports both SPC (IGT) and GDS protocols and can be configured to communicate with multiple hosts simultaneously, such as RS-232 or Netplex, and USB protocols.

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DALLMEIER / KONAMI GAMING / SHFL ENTERTAINMENT

News

AGEM HIGH: AGEM’S INDEX OF 17 QUOTED GAMING COMPANIES REACHED A NEW HIGH IN JULY AND IS SHOWING A 50+% INCREASE ON LAST YEAR. SECURITY

PEOPLE

Dallmeier continues to innovate in Macau

Konami set to grow with promotion Konami Gaming has announced the promotion of Matt Reback to vice president of marketing; a role that will ensure the company is well positioned to grow.

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German video surveillance technology expert Dallmeier is continuing to present new innovations to casinos in Macau as it looks back on a decade of success in the province.

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he Chinese region of Macau is one of the most important sales markets for Dallmeier, which has operated its own company branch on the island for several years, as well as designing and installing an extensive IPbased video system here.

Dallmeier established itself in Macau about 10 years ago, with the first digital video solution and about 1,200 channels, when an international tender, the first foreign casino in Macau, the Las Vegas Sands, was looking for a surveillance system.

Just a year after Sands opened, the casino dou-

bled its capacity, which also meant that the surveillance system had to be expanded correspondingly. As the boom in Macau continued, the Sands Group acquired several more properties on the main island of Macau, as well as on the Cotai Strip. By this time, the Sands, the Venetian and the surrounding hotel complexes had combined to form a single interconnected network, with15,000 cameras now controlled here from a main control centre.

Many more projects, such as the City of Dreams, have followed over the years and the end of the development

asino gaming and systems company Konami Gaming has announced that it has promoted Matt Reback to vice president, marketing.

Reback joined Konami in 2012 as senior director of marketing, bringing a range of marketing, brand strategy and casino operations experience to the company.

He and his team have designed and executed successful marketing plans, which have included brand and product launches, advertising campaigns, public relations, trade shows globally, and the recent launch of the new company websites. In this new role, he will continue to report to Steve Sutherland, chief operating officer and executive vice president at Konami, and will ensure that the company is supported by marketing and well positioned to grow.

Sutherland commented: “We are pleased to appoint Matt to the position of vice president of marketing at Konami. Since his arrival, he

is nowhere in sight yet: not just because new casino and hotel resorts are being built all the time, the existing casinos are constantly expanding their video systems.

Konrad Hechtbauer explained: “The systems are becoming bigger and bigger, and more and more complex. They now also incorporate a multitude of interface connections, such as card readers, slot machines or POS systems. The data from the peripheral systems is linked to the video images. The user is alerted to sensitive areas automatically by complex mathematical calculations, so the system func-

tions proactively. Unusual situations at the gaming tables are detected and reported by means of intelligent video analysis.

Our many years of experience in Macao are incorporated systematically in our development programme, and as a result Dallmeier is constantly able to present new innovations.”

In order to satisfy the many specifications of its customers in Macau, Dallmeier has founded its own subsidiary: Dallmeier International, a joint venture between Dallmeier in Germany and its Australian business partner C.R. Kennedy.

has developed new and innovative marketing strategies for both games and systems.”

Prior to his employment at Konami, Reback served as the vice president and assistant general manager of the Sunset Station casino for Station Casinos, where he was responsible for the day-to-day operations of the property. While employed with Station Casinos, he also served as the director of marketing for the flagship Red Rock Casino Resort & Spa. His experience also includes the role of senior director of brand management for Caesars Entertainment, where he was responsible for marketing and brand strategy for the Harrah’s, Showboat, Harvey’s, and Grand brand properties.

PLATFORM

SHFL signs deal with oneLive SHFL entertainment has signed a deal to provide its proprietary table games to mobile gaming platform provider oneLive.

HFL entertainment has signed an agreement to provide its proprietary table games to mobile gaming platform provider oneLive.

Under this agreement, oneLive will receive rights to develop and offer many of SHFL’s proprietary table game titles, such as Three

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Card Poker, Let It Ride and Ultimate Texas Hold ‘Em on oneLive’s easyPlay mobile gaming platform. EasyPlay allows commercial, tribal and cruise ship casinos, card rooms and racetracks to televise their own floor dealers live in HDTV to players throughout their property,

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onboard their ships or online to mobile devices in regulated markets. The easyPlay casino-grade system allows casinos to set up individual, secure player accounts for real money gambling with no change to existing operations. Online payment processors are

also supported.

Lou Castle, chief strategy officer for SHFL, commented: “We believe that this agreement aligns very well with our objective of expanding the reach and accessibility of our online content by giving casino patrons the option to gamble away from

the gaming table.”

Michael Jabara, chief executive officer for oneLive, added: “Mobile use by people in every country is growing exponentially. easyPlay brings the live action excitement of the gaming floor and the well-known brands of casino customers

into the hands of casino patrons globally, whether at the pool, on deck, or inroom. As the only US-based company to focus exclusively on live dealer mobile gambling, we are honoured to be adding SHFL’s innovative and popular table games to our Easy Play platform.”

www.patir.de info@patir.de

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Listings

Business2Business

G2E 2013

G2E 2013

Two landmark innovations set for G2E unveiling by GTech

Vegas showing is a home from home for Gamesman

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LISTINGS

With a continued focus on innovation in the world casino and gaming industry, GTech is preparing to launch a standalone jackpot solution and on-screen scratch care at this year’s G2E.

tech, with its gaming product brand, Spielo, is bringing gaming to life at the Global Gaming Expo (G2E) in Las Vegas. The company’s stand will be the site of two new casino systems launches, Rub4Riches and JP2go, and will showcase the latest Galaxis modules and System2Go packaged solution.

Continuing to lead the way with new products that respond to market demands, Gtech is introducing its standalone jackpot solution, JP2go. It gives operators the first fully-installed, turnkey jackpot solution as a standalone package. No complicated installation procedures and expensive, extraneous software applications are required. Instead, it offers targeted, revenue-building progressive and mystery jackpots for a single, all-inclusive price to increase machine play. Included in the package is a high-tech multimedia signage solution to promote jackpots and share the excitement of big wins.

Also launching at G2E, Rub4Riches brings the thrill of instant reward scratch cards to slot machines on the Crystal.Net player interface. Players can scratch to win a variety of different bonuses directly at the slots. This new, cus-

tomisable bonusing tool allows casinos to design targeted campaigns u s i n g sophisticated segmentation criteria to promote player loyalty clubs, reward loyal customers, and/or encourage longer play. Part of the Galaxis Bonusing module, Rub4Riches rewards operators’ VIP players whenever they want.

For more in jackpot solutions, Galaxis Jackpots is the powerful market-leading solution for local and wide area mystery and wide area progressive (WAP) jackpots.

Gtech’s long-standing expertise in jackpot solutions has translated into top-performing WAP systems currently installed in more than 300 gaming venues in almost twenty countries around the globe.

Gtech provides the games, systems, and administration that integrate seamlessly with cabinets from a wide range of manufacturers for some of the biggest headline-grabbing WAPs in the world.

The System2Go slot management system combines on-line

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accounting and remote monitoring with a complete jackpot system in a single package. Quick and easy to install and simple to operate, System2Go is successful with single- and multi-site slot venues in continents across the globe. Available in a series of four scalable packages, advanced features can easily be added on for ticket-in, ticket-out, magnetic card cashless and player tracking. System2Go is an affordable and versatile system for all types of slot venues.

STAND NUMBER: 1265

amesman and parent company Esterline will be exhibiting product together for the first time on booth 1324 at the forthcoming G2E in Las Vegas. G2E is the first major expo to be held on US soil since the world’s leading components developer and manufacturer was acquired by Esterline in February 2013.

Gamesman’s links with the slots manufacturing capital of the world have strengthened since it first attended G2E in 2008 as Managing Director Mark Smith explained: “We have made the transition from being visitors to booth holders and in 2010 became employers when we opened a dedicated office in the city under the leadership of British national Nick Walter. In three years we have increased the size of the footprint by 100 percent and in the process increased our headcount, the vast majority of whom are from Vegas and the

ACQUISITION

ADMINISTRATION

APPOINTMENTS

SUZO-HAPP ADDS TRANSCITY TO BOOST AUSTRALASIAN PRESENCE

PATIR UNVEIL NEW HEADQUARTER IN MUNICH-ECHING

AMERICAS COO DEPARTS BMM

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ambling component manufacturers SuzoHapp have acquired Transcity, a manufacturer of gaming hardware and software.

Transcity's management team remains untouched as they continue to operate with their existing customers in Australasia.

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atir Design has now fully installed itself into its new headquarters in Munich-Eching (Germany). At the beginning of 2013 the casino chair manufacturer moved its HQ into a new modern building with increased storage capacities very close to Munich airport. Besides modern offices and a large warehouse the company's new HQ provides an attractive showroom. This change even reduces the already very fast delivery times for any chair quantities on highest quality level.

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OO for the Americas, Mike Dreitzer has left his post at gaming testing laboratory BMM. He moves on to become President for Ainsworth Game Technology Limited (AGT) North American Operations. Meanwhile, BMM has announced the creation of up to 27 new jobs at its Canadian offices in Moncton, New Brunswick.

EXECUTIVE SHUFFLE AT INCREDIBLE TECHNOLOGIES

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ncredible Technologies have promoted Beena Blake and Tony DeFeo the posts of VP of Gaming Sales and VP of Software Engineering respectively. They have also welcomed external hire Jim Esposito as national regional sales manager.

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B2B LISTINGS: EMAIL JAMES WALKER ON JW@SJC.CO.UK B2B Listings: jw@sjc.co.uk

SLOTS PERIPHERALS VLTS SERVICE CASH HANDLING SYSTEMS MULTI-GAMES ROULETTE PEOPLE

Casino Review paper rolled up old ad

PERU GAMING SHOW

Amatic displays its dedication to Latin America he focus on and dedication to the Latin American gaming market given by Austrian Amatic Industries was displayed in Lima, Peru in August.

The company’s local partner Happy Games was kept busy during the two days of the Peru Gaming show, with Amatic’s multi-game solutions and electronic roulette proving popular with Peruvian players.

The Performer C22 gaming machine has a unique design that helps operators set their portfolio apart and breath new life into their gaming locations and the choice of games means that each and every player can find their favourite game.

Also on display was the six-player Grand Jeu automatic electronic roulette was, which has been a winner for many years around Europe and is now available for sale in Peru.

In the multi-games sector, Amatic has tailored games for the market - including Multi Juegos. Thomas Engstberger, sales manager at Amatic Industries, commented: “The feedback at the Peru Gaming Show has been excellent.

Our multi-games are performing very well, in particular the fruit games. I can confirm our increased focus on the market here. We will be developing brand new games specifically for the players in Peru”.

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He added: “Having an operational base in Vegas is a major advantage and a feature of our offering that our customers really value. Being a short drive from so many of our customers enables us to supply parts, in many cases on the same day. This gives us a strong competitive advantage and is in keeping with our commitment to deliver gaming solutions through a combination of technology driven products and on-going customer support. We look forward to welcoming visitors to the first joint Gamesman Esterline booth and explaining our thinking on the industry as we move towards our first anniversary of working together” Gamesman’s base in Las Vegas is complemented by its head office in London Gatwick and its wholly owned manufacturing facility in Shenzhen, China.

STAND NUMBER: 1324

CONTENT EVERYMATRIX COLLABORATE WITH EGT

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aming manufacturer Euro Games Technology Ltd. are to integrate their content with the EveryMatrix Casino Engine. The duo will be exhibiting at the upcoming Entertainment Arena Expo in Bucharest, Romania.

INSTALLATIONS ANOTHER OASIS IN NEVADA

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ristocrat have installed their Oasis 360™ casino management system in a third Nevada casino - the Pioneer Crossing in Yerlington. The system is already in place at Pioneer’s Fernley and

Dayton locations. In addition,the M ystique Casino in Dubuque, Iowa has renewed its partnership with Aristocrat following an upgrade of their widely used Oasis 360™ casino management system.

HUGE INTERBLOCK INSTALLATION IN VIETNAM

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ietnam’s first large-scale resort, The Grand Ho Tram Strip, has recently received a delivery of 104 new Interblock play stations. The new machines have been drawn from both the G3 and G4 generations.

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Listings

Business2Business

GBM MEDIA: “WE HAVE A NUMBER OF VERY EXCITING PROJECTS PLANNED ACROSS OUR PORTFOLIO OF B2B TITLES AND MARKETING SERVICES DIVISION OVER THE COMING MONTHS.” CASINO LICENCE

APPOINTMENT

South African province invites casino proposals

GB Media strengthens marketing drive with appointment of Emilie Beau-

he Mpumalanga Gambling Board (MGB) has issued a statement inviting proposals for a licence to develop and operate a new casino in the eastern South African province.

Of the four casino licences allocated to the Mpumalanga Province, only three have so far been rolled out. According to the MGB, casino licence proposals will be considered for any location within the province, but the board stipulates that the development must be part of a mixed-use resort complex and not a standalone gaming facility.

LISTINGS

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“The board would expect potential applicants to integrate the proposed casino within a resort-style development of at least of ZAR1bn (E73.8m) and stimulate tourism in the province,” it said. “Although, the business plans and strategies of potential applicants may have a significant impact on the form that the development of the casino will take, it must show how the casino will establish and maintain its market and also include the provision of an increased number of attractions to the local market.”

PARTNERSHIPS SUZO-HAPP TO DISTRIBUTE TRANSACT

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aming component supplier Suzo-Happ has entered an agreement to distribute TransAct gaming printers in many locations around the world.

PAYMENT SOLUTIONS CRANE GEAR UP FOR G2E

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variety of bill validators and other cash products will be on display at the Crane Payment Solutions stand at this year’s G2E. Among them the CashCode one™ bill validator and Money Controls Ardac Elite.

PEOPLE COMTRADE GAMING PROMOTES GORNJEC TO GM

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omTrade Gaming has promoted Ales Gornjec to the position of general manager.

Gornjec joined ComTrade Group in 1996 as a software developer and

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The deadline for submission of preliminary proposals is January 20, 2014, and the MGB said all proposals must comply with South Africa’s economic empowerment and social development guidelines. In addition, the casino business, including any hotel, resort and leisure facilities, must be owned and operated by a company registered in the Republic of South Africa, the MGB stated.

Mpumalanga lies in eastern South Africa, north of KwaZulu-Natal and bordering Swaziland and Mozambique.

project manager and in 2001 founded the gaming which has now grown to operatewithin most areas of the gaming industry including online and land based casino, sports betting and poker operators.

PERIPHERALS DALLMEIER PICODOME NOW IN HIGH-DEFINITION

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he most compact camera from Dallmeier, the Picodome, is now in 720p HD resolution.

The HD Picodome provides real-time HD video (720p/30) using the H.264 codec, currently the most advanced standard for high-efficiency video compression, and supports resolutions up to 1.3 megapixel. It is characterised by its wide dynamic range and allows the capturing of images with highest colour fidelity and detail reproduction even in scenes with a wide range of contrast and strong backlighting. The low-light performance also provides for clear and low noise images in low light conditions.

Fresh from her success coordinating the Casino Investors Congress, Emilie Beau has been installed as GB Media’s latest executive and will now apply her marketing expertise to company’s entire portfolio.

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B Media (GBM) has appointed Emilie Beau to the post of marketing and new business development executive. Beau previously worked at GBM on a short-term contract co-ordinating the media company’s highly successful Casino Investors Congress in Batumi Georgia, before returning to Marseilles to complete her Master of Science in Management, where she specialised in marketing.

Emilie, a native French speaker who is also fluent in Spanish and English, will be responsible for implementing GBM’s magazine marketing campaigns as well as identifying and developing new business opportunities in the gaming industry space.

Reporting to GBM director John Sullivan, Beau is the latest addition to the team which is based in Bolton.

Commenting on the appointment John Sullivan said: “IWe have a number of very exciting projects planned across our portfolio of b2b titles and marketing services division over the coming months and I felt it was imperative to recruit a marketing specialist who is multi-lingual to help bring these projects to fruition. Emilie was a key component of the GB Media team that delivered the hugely successful Casino Investors Congress Batumi.”

Looking forward to her new role, Beau said: Being involved in the organisation of CIC Batumi last year was such a great experience and I am really glad to be back at GB Media working with the team once more.

We have some fantastic projects in the pipeline and I am certain that it’s going to be both exciting and challenging.”

www.macaogamingshow.com

enquiry@macaogamingshow.com

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Listings

Business2Business

MACAO GAMING SHOW: “THE DIFFERENTIATOR IS THE ASIAN FOCUS. BUYERS WILL ALSO BE ABLE TO MEET A MORE DIVERSIFIED GROUP OF EXHIBITORS.”

SERVICE

TECHNOLOGY

Novomatic pioneers innovative solutions

FUTURELOGIC LAUNCHES SERVICE TO IMPROVE CUSTOMER EXPERIENCE

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payout can be administered via the biometric recognition of the guest at a cash terminal or cash desk.

This new development brings maximum comfort for the guest: they will be able to utilise the entire offering in completely cashless ease. Also, casino operators will be able to tap completely new business perspectives with this revolutionary system, such as new offers, increased cost efficiency as well as increased security.

All existing Novomatic products are already biometric ready, meaning that they can be easily and quickly upgraded and networked as soon as the system is launched to the market. Respective testing environments are currently implemented in the group’s own operations.

TRICKS OF THE TRADE Do we have any new tricks up our sleeve?

Gaming Support will share its latest innovations at G2E; America’s biggest event in the gaming industry. Please join us at our booth.

SHOWS INTERBLOCK ON FORM IN PERU

LISTINGS

ovomatic is the first gaming provider to internationally introduce the pre-requisites for a comprehensive biometrically supported registration and payment system.

For this vision, the gaming group has employed and bundled together existing technologies and developed proprietary systems that allow various applications in the gaming segment, as well as in ancillary areas such as gastronomy. Once a guest is registered they can login via biometric recognition, gain access to the gaming area or play land-based as well as online.

This network is implemented in a socalled single-wallet-environment that includes gaming machines, a restaurant or a bar within an operation or even an online or mobile casino. Even the cash

utureLogic has launched a new worldclass service and repair facility in Phoenix, Arizona; a new customer service hotline for US customers; and the establishment of a more comprehensive direct sales presence, service and support organisation to better serve customers worldwide.

The service and repair facility and customer support hotline will offer technical support, customer service, fault diagnostics, product repair and 24-hour response to customer issues (Monday-Friday). As a valueadded benefit, the new facility will also coordinate the pick-up, delivery and swap out of any FutureLogic printer under warranty within 48 hours at no cost to the customer.

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head of G2E, Interblock is reporting a good showing for their 4th generation products at the Peru Gaming Show, where they appeared alongside their South American distributor Koala Gaming.

ZITRO USA PREMIERS AT OIGA

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itro unveiled their US subsidiary - Zitro USA - at OIGA 2013. The video bingo creators will have their stateside headquarters in Las Vegas, Nevada.

GSA TO PRESENT ITS VISION FOR THE FUTURE AT G2E

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he Gaming Standards Association (GSA) will be is bringing its message and vision for the future to G2E this month.

The association will be talking about its recent contract with RadBlue to develop the Compliance Verification Tool, or CVT; the rapidly evolving world of online gaming and how GSA can help regulators as play-forfun, play-for-money and social online gaming migrate into their jurisdictions.

SOFTWARE NEWAVE TITLE 31 IN PLACE AT BELTERRA

booth 2912

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elterra Casino Resort in Florence, Indiana is the latest establishment to adopt the Title 31 Manager software from NEWave.

The installation will aid the casino in complying with anti-money laundering regulations.

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Philadelphia: host to WrB

WRB: “AFTER THE FAILURE OF THE PAST FEDERAL BILLS, ALL THE SMART MONEY WAS ON MULTI-STATE COMPACTS...AND FOR STATES TO PLUG HUGE BUDGET DEFICITS.”

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RGT used the recent Peru Gaming Show to demonstrate its complete gaming solutions.

The partnerships with Alfastreet and APEX gaming proved highly successful, with the electronic roulettes from Alfastreet and the slots and games from APEX gaming placing DRGT in pole position as a key industry player in all three segments - systems, electronic roulette and slots.

Jurgen De Munck, CEO and co-founder of DRGT, looked back on a successful Peru Gaming Show, stating: “We have a very strong reputation here in Peru. The fact that we are the distributor and service partner for both Alfastreet and APEX gaming has been applauded by the market here.”

DRGT’s exhibits complete solutions in Peru

LISTINGS

SYSTEMS

EVENTS

FIREKEEPERS ADOPT FULL NEWAVE PACKAGE

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EWave have installed the complete myCompliance™ software package, alongside the NWJE University training system, at the Firekeepers Casino Hotel in Battle Creek, Michigan.

TRAINING GAMBLING COMPLIANCE RELEASE NEW COURSES

DRGT exhibited its complete solutions, including optimal systems solutions with slots and electronic roulette, at the recent Peru Gaming Show.

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alongside plans to provide bespoke training, Gambling Compliance have now released The Responsible Gambling and Anti-Money Laundering courses.

sales@gamesman.co.uk

www.gamesman.co.uk

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WHY INTERNATIONAL CASINO REVIEW IS THE INDUSTRY’S MEDIA PARTNER OF CHOICE! B

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THE BEST WAY TO REACH OPERATORS A

C

84.2%

2%

Operators

Regulators/Government/Law

Global Circulation

Readership breakdown by sector

B

16,844

13.8% Suppliers

A READERSHIP OF INFLUENCERS AND DECISION MAKERS A

C

30.1%

20.4%

C-Levels (chairman, president, CEO, partners)

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D

46.6%

2.9%

D

A

USA/CANADA/CARIBBEAN

Senior management (Operational managers, sales/ marketing/PR managers…)

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Managing directors/ general managers

B

2,004 11.9%

Readership breakdown by job title

Others (senior game designers, financial directors…)

B

C

D

A

INCREASING CROSS CHANNEL READERSHIP A

C

62.9%

2.5%

B

D

16%

18.6%

Land based casino Readership breakdown by type of gaming

Slot halls/Street gaming

PRINT 4,061

Lottery

Online/Mobile

When the Government of the Autonomous Republic of Ajara wanted to launch it’s gambling tourism vision for the Black Sea resort of Batumi, it immediately turned to Casino Review appointing it as the exclusive media partner. The integrated above and below the line campaign run only through Casino Review exceeded expectations and resulted in 120 investors from 25 countries traveling to Batumi The EXCLUSIVE European media partner for the Association of Gamto do business. ing Equipment Manufacturers (AGEM) and the Official Publication of If you want more information on how International Casino Review the European Casino Association (ECA), the magazine is also used can work with you to help achieve your commercial objectives simby Reed Exhibitions to promote G2E Las Vegas and G2E Macau; ply contact Publisher John Sullivan at jsullivan@gbmedia.eu Monografie S.A to promote SAGSE Buenos Aires and by Clarion Events in support of its flagship London event, ICE Totally Gaming and EiG, Barcelona.

With such an extensive, worldwide distribution coupled with award winning production and content it’s no surprise that International Casino Review is the preferred media partner for so many leading industry associations, b2b events and commercial organisations throughout the world.

On average, each print copy of International Casino Review is read by

4.13

GLOBAL COVERAGE

readers

WESTERN EUROPE

10,072 59.8%

CENTRAL & EASTERN EUROPE

1,769 10.5% ASIA PACIFIC

1,465 8.7% MIDDLE EAST/AFRICA/SOUTH AFRICA

539

3.2%

CENTRAL & SOUTH AMERICA

995

5.9%

CIRCULATION BREAKDOWN DIGITAL 12,783

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Business

& City News

MELCO CROWN ENTERTAINMENT

Mass market continues to boost Melco Crown growth

elco Crown Entertainment, which operates the City of Dreams and Altira in Macau, has reported net revenues for the second quarter of 2013 of U S $ 1 . 2 9 b n (E971.4m), representing an increase of approximately 38 per cent same period a year ago.

The company said the increase in net revenue was primarily attributable to higher group-wide rolling chip revenues and massmarket gross gaming revenues.

Adjusted EBITDA was $330.1m (E248.6m), a 62 per cent year-overyear increase attributable to strong growth in the mass market table games segment at City of Dreams, improved rolling chip volume, a higher win rate and cost controls.

Net profit attributable to Melco Crown was $181m (E136.3m), 120 per cent ahead of the same period in 2012. The strong operating per-

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With some huge development projects already underway or in the pipeline, Melco Crown is glad of the cash that’s rolling into it flagship property City of Dreams.

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formance was credited with the result along with reduced interest expenses following the refinancing of $600m (E452m) of 10.25 per cent senior notes and redemption of the RMB notes in the first quarter of 2013. That was partially offset by $8.6m (E6.5m) of finance charges associated with the Philippines capital lease obligation, $15.8m (E11.9m) of net interest expense and other finance charges associated with Studio City and a higher capitalised interest, primarily related to Studio City.

Lawrence Ho, co-chairman and CEO, said: “I am pleased to report another successive quarter of record earnings and EBITDA, building on the strong momentum in the first quarter of 2013.”

He continued: “Highlighting the ideal strategic positioning of our flagship property, City of Dreams, this premium-mass focused property once again captured meaningful market share in the mass

market table games segment which, in turn, has been the major driver of our impressive groupwide performance in the second quarter of 2013. City of Dreams’ unique ability to cater towards these highly discerning, premium mass market-focused customers is highlighted by our market-leading mass table yields, which is increasingly important in a table supply constrained market.”

Ho said the company was moving forward with a fifth hotel tower at City of Dreams, which should start construction by the end of 2013.

“This iconic additional hotel tower represents another powerful addition to our wide array of amenities and attractions that City of Dreams already offers its premium-mass and high end customers, providing another tool to further extend our leading position in this key segment,” he added.

The company has a number of

developments in the pipeline with Studio City reported to be on budget and on-track to open in mid-2015. The timing of its Philippines project remains unchanged and is expected to open around the middle of next year. “Macau continues to deliver robust growth across all gaming and nongaming segments in 2013, highlighting its unique position to cater to the rapidly evolving Asian consumer and expanding middle class,” said Ho. “Similarly, our Manila project is well positioned to address this segment in the Philippines and the broader region providing another destination to a wider array of consumers seeking a broader leisure and entertainment proposition. Both of these markets are expected to benefit meaningfully from widereaching development plans and significant infrastructure improvements, helping to improve access and enhance customer experience.”

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BALLY TECH / BOYD GAMING / CENTURY CASINOS / MELCO CROWN / RANG GROUP / SKY CITY / WYNN RESORTS Are city reports showing across the board improvement

BUSINESS & CITY NEWS 74-79 SECTORS & SERVICES 80-82 PEOPLE/RECRUITMENT 84-85 EVENTS & DIARY 86-89 RANK GROUP City of Dreams is to get a fifth hotel tower

Rank improves from within and without Growth by acquisition is one thing: Grosvenor Casinos is managing pure and substantial organic growth at the same time as it continues on its impressive course. The Rank Group’s confidence is high.

“ The company’s confidence is booming with the success of its G Casino concept that has transformed the business and kept venues appealing ...

MELCO CROWN: YEAR TO DATE wo successive record quarters have led to a record half-year in which Melco Crown generated revenues of $2.44bn (E1.84bn), an increase of more than 24 per cent, with all revenue streams growing, especially gaming, which rose 25 per cent to $2.37bn (E1.78bn). Half-year profits attributable to the company rose 14.9 per cent to $234.8m (E176.8m).

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he year to the end of June marked a major milestone for the Rank Group: it completed its acquisition of most of the Gala Casinos estate in May to bring its total number of casinos up to 55. It has overtaken Genting to become the largest casino operator in the UK. The company’s confidence is booming with the success of its G Casino concept that has transformed the business and kept venues appealing and profitable despite the UK’s wider economic difficulties.

That trend continued in 2011/12: Rank’s capital investment of £38.2m (E58.8m) was spent largely on Grosvenor Casinos, which generated operating profit of £47.4m (E74.3m), up 16 per cent, off revenues that were up 15 per cent to £300.3m (E470.6m).

Those figures were boosted, of course, by the acquisition of the Gala venues in the final six weeks or so and by the government’s new Machine Games Duty regime that has replaced the Amusement Machine Licence Duty. Like-for-like revenues at the casinos rose 7.5 per cent to £275m (E430.9m).

Excluding the new properties, operating profit from the bricks and mortar business rose 10.4 per cent to £46.6m (E73m).

Digital revenues saw a huge 72 per cent increase to £9.8m (E15.3m), which allowed that division to reduce its operating loss 27.6 per cent to £2.1m (E3.3m).

Other key performance indicators for Grosvenor were almost all positive.

The number of unique customers rose 2.9 per cent to 1.3m, with the number visiting

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land-based venues up 2.2 per cent: the rest - 35,000 - were unique visitors to the digital platforms. Across both channels customer visits were up 1.5 per cent to 6.4m, however, that was all and more down to the digital business. Visits to the casinos fell 0.7 per cent in the year, nevertheless, spend per visit was up 7.3 per cent to £44.56 (E69.82) with spend at the live casinos up 8.3 per cent at £45.44 (E71.20), due said the company to a greater spend in the London casinos. That more than offset a 5.8 per cent fall in visits to the capital’s venues where operating profits were up 28.5 per cent to £26.6m (E41.7m).

A 2.2 per cent rise in visits to Provincial casinos and increased spend pushed their revenues up six per cent to £154.4m (E241.9m). However, operating profit was down 12.3 per cent. The company said that as newly opened G Casinos take two to three years to mature, while they have a posi-

tive impact on revenues, the effect is negative on operating profit.

While visits and revenues were down at Grosvenor’s two Belgian casinos, the venues have broken even compared to a slight loss in the previous year, thanks to improved cost discipline and a partnership with Unibet which is making use of the venues’ ability to offer online gaming in Belgium.

Group-wide, including Mecca Bingo and the Enracha brand operating in Spain, the company saw revenues from continuing operations rise seven per cent to £625m (E979.4m) and operating profit inch up but remain essentially flat at £69.9m (E68.3m).

CEO Ian Burke said: “Despite the tough economic environment and the competitive market in which we operate the Group has delivered a solid set of results. It has been a busy 12 months for Rank culminating in the successful completion in May of the acquisition of 19 casinos and three nontrading licences from Gala Coral… These additional casinos are already being integrated into the Rank estate and a programme of improvements has c o m menced.”

Ian Burke CEO of the Rank Group

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“2013 WAS A SIGNIFICANT YEAR FOR SKYCITY AS WE CONCLUDED AGREEMENTS WITH GOVERNMENTS IN NEW ZEALAND AND SOUTH AUSTRALIA THAT WILL UNDERPIN THE FOUNDATIONS OF OUR LONG TERM FUTURE GROWTH.” SKYCITY ENTERTAINMENT GROUP

‘Acceptable’ year follows record year for SkyCity New Zealand-based SkyCity Entertainment had some substantial figures to compare itself in the year just passed and did just fine. It has also initiated two transformative projects. kyCity Entertainment has announced a Normalised NPAT (Net Profit After Tax) of NZ$136.3m (E82.5m) for the year to the end of June, 3.6 per cent down on FY12 but still, according to the company, an “acceptable result” given that the previous year was a record.

Revenues for FY13 reached NZ$947.8m (E573.4m), a rise of 0.7 per cent, with Adjusted EBITDA falling 2.5 per cent to NZ$297.1m (E179.7m).

The figures were affected by a number of factors: profits in FY12 were boosted by the Rugby World Cup (RWC) that took place in New Zealand in the first half of that financial year. The 2013 financial year saw the sale of the company’s 50 per cent interest in Christchurch Casino in December for NZ$80m (E48.4m), eliminating what would have been a NZ$3.1m (E1.9m) contribution to profits for the second half of the year.

In its Australian business, the SkyCity in Darwin saw revenues and EBITDA grow substantially with the success of its new Horizon gaming suites and salons and the Lagoon Resort attracting international players. However, the strengthening New Zealand dollar against the Australian dollar pegged back the gains for the parent company to 1.2 per cent.

The company said: “On a full year basis, adjusting for the 2011 RWC, the

S

|BUSINESSBRIEFS AGEM Index soars again in July AGEM’s index of 17 quoted gaming suppliers reached a new high of 177.23 in July after reporting a dip in June. It rose 11.7 per cent sequentially but is up 52.3 per cent compared to July 2012. The rise was due to 15 compa-

76 | casinoreview September 2013

Christchurch Casino disposal and constant currency, Normalised NPAT for FY13 would be NZ$137.1m (E82.9m), which would compare to NZ$133.6m (E80.8m) in FY12, an increase of 2.6 per cent.”

SkyCity CEO Nigel Morrison said: “While on the face of it, the headline Normalised NPAT may be perceived as somewhat disappointing, I think when you take into account the growth in our international business, the high win rate in the second half, the success of Darwin, the strengthening NZ dollar and given we are comparing to the RWC year, on balance it is an acceptable result.”

He continued: “The 2013 year was a significant year for SkyCity as we concluded agreements with governments in New Zealand and South Australia that will underpin the foundations of our long term future growth. The progress we have made in Auckland and Adelaide means that SkyCity is well positioned for the future with secure long-term gaming licences and additional and more competitive gaming product secured in our largest businesses.”

The major projects include the transformation of the Adelaide Casino in South Australia. On July 25 2013, state parliament passed enabling legislation for that will allow the A$300m-plus (E206m) development of the Adelaide Casino into a world-

class integrated entertainment complex. It will include Adelaide’s first six-star boutique hotel, celebrity and signature restaurants, VIP gaming facilities with ‘Horizon’ international suites and adjoining private gaming salons, all as part of a new entertainment precinct on the banks of the River Torrens.

Earlier in July, SkyCity signed the final agreement with the New Zealand Government to fund, develop, operate and own the New Zealand International Convention Centre (NZICC). In return for the NZ$402m capital investment in the design, construction and operation of the NZICC, the government has agreed a package of regulatory reforms including a 35-year extension of the Auckland Casino Venue Licence, to June 30 2048.

The company has also restructured its property portfolio: having sold its halfshare in Christchurch Casino, it bought the remaining 40 per cent stake in Queenstown

Poor weather hits TWC results

nies seeing share price rises, including Bally (up 27.1 per cent on June), which is to buy SHFL (up 28.5 per cent). Despite a prediction of better-than-expected profits this year, Ainsworth saw its share price fall 10.7 per cent compared to June. The AGEM Index substantially outperformed all the broader stock markets indices.

Fundamental strength at GTech Q2 revenues at lottery company GTech, the parent of Spielo, were up three per cent to E762m driven by higher revenues

Casino and also in July added the Wharf Casino in Queenstown, which it bought for NZ$5m (E3m) from Lasseters.

The company said: “These moves allow SkyCity to further develop its VIP offering in this iconic tourism region. Work is underway to upgrade the VIP offering at SkyCity Queenstown and to integrate Wharf Casino into SkyCity’s operations.”

in the Americas region from the sale of VLTs and systems in Canada. EBITDA rose five per cent and operating profit six per cent to E273m and E161m, respectively.

Net profit grew to E67m from E64m. “Our achievements this quarter are a testament to the fundamentals of our business and the strengths of our three regions,” said CEO Marco Sala. “Strategically, our reorganisation efforts are on track.”

Trans World Corporation, the US firm that operates casinos and hotels in the Czech Republic, saw its H1 revenues fall 1.1 per cent to $17.2m due, it said, to the wintry weather that effectively reduced the volume of business for 34 days in Q2 as well as flooding in Q2. EBITDA was $1.9m, a 24.6 per cent decrease and the company turned a comprehensive loss of $1.3m. It expects the newly refurbished casino in Ceska Kubice to improve revenues across the rest of the year.

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BUSINESS NEWS: EMAIL HUGH.SORRILL@VIRGIN.NET Bally results show good signs

BALLY ENDS YEAR ON A HIGH 78 E-SERVICE RESPONDS TO CASINO SECTOR NEEDS 80 PLUS ARCHITECTURE FINANCIAL SERVICES FOOD AND BEVERAGE AND MORE 80-83 CENTURY CASINOS SkyCity Entertainment’s CEO Nigel Morrison

Century sees boost from Casinos Poland S-Austrian operator Century Casinos has reported second quarter revenues of US$26.1m (E19.6m) up 66.2 per cent on the previous year, with half-year revenues ahead 34.8 per cent to $41.8m (E31.5m).

The revenue boost comes from an injection of $10.9m (E8.2m) from Casinos Poland, in which Century now has a two-thirds interest after acquiring stock from its former partner LOT Polish Airlines. That deal was completed in May with the figures now integral in Century’s reporting.

Despite the increase share of costs, adjusted EBITDA for the quarter was up 34 per cent to $3.9m (E2.9m) and in the half up by 26 per cent to $7.1m (E5.3m). Net profit in the second quarter more than trebled to reach $3.6m (E2.7m), Century’s co-CEOs Erwin Haitzmann and while in the six-months it was more than twice Peter Hoetzinger as much at $5.3m (E4m) “We posted excellent results in the second to net operating revenue,” said Erwin Haitzquarter. The Casinos Poland acquisition is mann and Peter Hoetzinger, co-CEOs of Cencomplete and has been immediately accretive tury Casinos. “Even when excluding the

U

one-time gain associated with the Casinos Poland acquisition, net earnings increased by 38 per cent… We are well positioned for further growth.”

The company’s other properties and ventures saw a mixed bag of results over the halfyear. The resort in Edmonton, Alberta had revenues of US$12.7m (E9.6m), up 6.7 per cent for an adjusted EBITDA of $4.6m (E3.5m), up 17.9 per cent. Revenues in Calgary fell 10.1 per cent but EBITDA just about doubled to $564,000 (E424,700). Its properties in Colorado, at Central City and Cripple Creek, saw half-year revenues of $8.8m (E6.6m) and $6.1m (E4.6m) respectively, the former down 3.3 per cent and the latter up by half a per cent.

EBITDA at Central City was down 12 per cent to $1.7m (E1.3m) but up 23.6 per at Cripple Creek to $1.5m (E1.1m). Cruise ship revenues were up three per cent in the half to $3.4m (E2.6m) with EBITDA up 20.5 per cent to $551,000 (E414,900).

PUBLIC NOTICE REQUEST FOR PROPOSALS FOR A CASINO LICENCE IN THE MPUMALANGA PROVINCE OF SOUTH AFRICA The purpose of this notice is to invite proposals for a casino licence in the Mpumalanga Province, South Africa in terms of section 29(1) of the Mpumalanga Gambling Act, 1995 (Act No. 5 of 1995), as amended.

This invitation follows the cancellation of the previous Request for Proposals (RFP) and casino licensing process on 24 July 2013.

The area, development, procedural and other requirements are explained in the Request for Proposal (RFP) document that was released by the Board. The RFP also contains the evaluation criteria that will be applied by the Board to award the casino licence.

The Board provides all interested parties, with an opportunity to request clarification on the RFP up to 09 October 2013.

The deadline for submission of preliminary proposals is

20 January 2014. Kindly note that preliminary proposal fees must be transferred and cleared to the Board’s bank account by the aforementioned submission date.

The aforesaid RFP can be downloaded from the Board’s website: www.mgb.org.za or can be obtained from the offices of the Board, located in First Avenue, White River, Mpumalanga Province, South Africa.

Any queries regarding this matter can be directed to the Chief Executive Officer at telephone number +27 (0) 13 750 8000, facsimile number +27 (0) 13 750 8099 or e-mail address ceo@mgb.org.za.

Issued by: BHEKI MLAMBO Chief Executive Officer

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BALLY: “THE PLANNED ACQUISITION OF SHFL ENTERTAINMENT WILL POSITION US EVEN BETTER AS AN INNOVATIVE END-TO-END GAMING SOLUTIONS PROVIDER.” BALLY TECHNOLOGIES

BOYD GAMING

Bally ends year on a new high as records tumble

Boyd buoyed by revenue rise

ally Technologies has announced record fourth quarter revenue of $264m (E198.8m) for the period ending June 2013. That brought it to a $997m (E750.7m) for the year.

“Fiscal 2013 was a truly momentous year in Bally’s history,” said Ramesh Srinivasan, the company’s president and CEO. “We made enormous progress in many different ways, including continued growth in wide-area progressive units, record gaming operations revenue, significant success in new markets like Canada, Illinois, and South Africa, establishing new revenue records in Systems while setting up Systems for further growth in the years ahead, and the launch of Bally content in regulated online jurisdictions. These achievements

B

position us well for continued growth in fiscal 2014 and beyond.”

He continued: “The planned acquisition of SHFL Entertainment will position us even better as an innovative end-to-end gaming solutions provider.”

Revenues from gaming equipment sales rose 9.4 per cent in the year to $339.8m (E255.9m), driven by higher replacement sales in North America, especially lottery terminals. The lower cost machines saw the average selling price fall four per cent to $16,411 (E12,357) per unit. New unit sales to international customers accounted for 19 per cent of the total. Gaming operations revenues rose 13.3 per cent to a record $405m (E305m), driven by 38 per cent growth in the installed base of WAP

B

Bally CEO Ramesh Srinivasan

games, as well as record annual lottery systems revenue. On the Systems side revenues were $252.2m (E189.9m), up 19.1 per cent; maintenance revenues increased 22 per cent to a record $91m (E68.5m).

Adjusted EBITDA rose 17.7 per cent to $332.5m (E250.4m) and net profit attributable to the company rose a substantial 39.9 per cent to $141.4m (E106.5m).

WYNN RESORTS

Wynn’s Las Vegas growth outstrips Macau’s

W

ynn Resorts has reported net revenues for the second quarter of 2013 of $1.33bn (E1bn), up 6.3 per cent on last year. The revenue increase was driven by 16.2 per cent higher revenues from the

company’s Las Vegas operations, which together generated $401.4m (E302.2m) and a 2.6 per cent increase from its Macau operations with revenues of $930.9m (E701m).

The group’s Adjusted

oosted by the acquisition last November of Peninsula Gaming, Boyd Gaming has reported an increase in net revenues for the second quarter of 20.3 per cent to $738.7m (E556.2m). Total Adjusted EBITDA was up 40.7 per cent to $160.2m (E120.6m).

Its wholly owned businesses, excluding Borgata in which it has a half-share, saw net revenues of $565.9m (E426.1m), up 29 per cent for Adjusted EBITDA of $132.3m (E99.6m), an increase of 59.3 per cent.

Borgata in Atlantic City saw second quarter revenues down 1.4 per cent to $172.9m (E130.2m) and Adjusted EBITDA down 9.4 per cent to $27.8m (E20.9m).

The company finally sold Dania Jai Alai in the quarter for a pre-tax gain of $18.9m (E14.2m). Including discontinued operations, Boyd’s net profit for the quarter was $11.8m (E8.9m), compared to a $0.7m (E0.5m) loss a year earlier.

President and CEO Keith Smith said: “Operating efficiencies and effective marketing programmes drove solid growth across our Las Vegas properties and Borgata posted year-over-year gains as well, after factoring out the impact of a tax charge. Our company is moving in the right direction, and I am optimistic about the outlook for our business.”

property EBITDA was $425.7m (E320.5m), up 10.8 per cent with a net profit attributable to Wynn Resorts of $129.8m (E97.7m), down six per cent due to a loss of $26.6m (E20m) on the early retirement of debt.

Adjusted net profit for the quarter was $152.9m (E115.1m), up ten per cent.

In the half year, group revenues were up 5.6 per cent to $2.71bn (E2.04bn) and net profit was up 19.4 per cent to $332.7m (E250.5m).

w w w. j c m g l o b a l . c om

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BUSINESS NEWS: EMAIL HUGH.SORRILL@VIRGIN.NET Mpumalanga in South Africa

SOUTH AFRICA: THE MPUMALANGA GAMBLING BOARD HAS IINVITED PROPOSALS FOR A LICENCE TO DEVELOP AND OPERATE A NEW CASINO IN THE SOUTH AFRICAN PROVINCE 80-83 MGM RESORTS INTERNATIONAL

OLYMPIC ENTERTAINMENT GROUP

Strip’s biggest operator Olympic’s year makes big inroad into losses on track GM Resorts, one of the most debt-laden operators in Las Vegas, surpassed in that respect only by Caesars, has reported a dramatic shortening of its losses in its first half. In the six months to the end of June, the company lost $86.4m (E65m), a 76 per cent improvement on the previous year.

Groupwide revenues rose 4.8 per cent to $4.83bn (E3.64bn) with casino revenues up eight per cent to $2.84bn (E2.14bn). MGM generated an operating profit for the half of $533.4m (E401.6), up 45 per

M

cent on the same period last year.

Chairman and CEO Jim Murren said: “We continue to see broad-based Las Vegas improvement as our Strip EBITDA increased 15 per cent, driven by a seven per cent increase in casino revenues and a five per cent increase in hotel revenues.

Jim Murren, chairman and CEO of MGM Resorts

A strong performance at MGM China led to another quarter of record results, driven by higher volumes in both mass market and VIP.” The Macau operation, in which the MGM Resorts has a 51 per cent stake saw net revenue in the second quarter of $835m (E628.7m), an 18 per cent increase over the prior year quarter, and its highest ever quarterly adjusted EBITDA of $205m, a 10 per cent increase.

MGM China has also announced a dividend of $113m (E85.1m), of which MGM Resorts International will receive $57m (E42.9m).

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he second quarter improved on the first to allow some growth in the half-year revenues for Olympic Entertainment Group (OEG). Takings were up 5.1 per cent to E67.4m in the six months to the end of June. All its markets bar Belarus posted some or good increases in revenues, with Latvia and Lithuania standing out.

Operating profit was up 6.8 per cent to E11.7m, however, finance costs, particularly from the first quarter, saw net profit for the period fall 19.1 per cent to E9.3m.

The Latvian business is set to grow further with the acquisition of rival casino operator Altea. The deal, signed on July 28, brings the total number of casinos operated by Olympic in the country up from 21 to 38.

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Sectors

& Services SYSTEMS

E-Service responds to client needs as maintenance partner

LISTINGS

S

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pares, service and after-sales support company E-Service is continuing to respond to the needs of the casino industry by developing the most efficient ways to keep machines operating and taking cash.

Mike Clokie, E-Service managing director, commented: “The latest casino equipment includes cuttingedge features such as remote terminals, touch screen interfaces, cashless payments and internet access to remotely monitor machine performance.

“There is a clear opportunity for the casino operators who embrace this new technology to increase productivity, but with this comes a risk of downtime should these sophisticated

ARCHITECTURE & DESIGN Cuningham-designed Margaritaville opens he third and largest freestanding MarT garitaville-themed casino had its grand opening celebration in Bossier City, Louisiana on July 4. The floating Margaritaville Resort Casino is the

components fail,” he added.

The company is the approved maintenance partner in the UK for SHFL Entertainment, Transact, 3M, Barcrest, Games Warehouse, JCM, Setec as well as other major industry brands. E-Service manages over 75,000 repairs per year of peripherals and electronic components found within today’s gaming equipment. In addition, its field service team supports several hundred machines and terminals sited within the UK industry. It offers reactive and preventative maintenance, understanding the operator’s needs and the intricacies of the equipment, ensuring machines continue to run smoothly with minimal downtime.

In responding to client needs and the

second of Jimmy Buffet’s venues to be have been designed by the Cuningham Group in collaboration with the McBride Company.

Perched on the east bank of the Red River and located on the north end of the Louisiana Boardwalk, the casino went from planning in May 2011 to opening its doors to the public in June 2013. The $205m (E155m) resort integrates live entertainment, volcano shows, restaurants, bars, a 395-room hotel and a 4,300sq m casino floor.

technical advancements within the industry, E-Service also now provides a 24/7 network call centre, which makes provision for networked online equipment that regularly operates 24 hours per day.

“The manufacturers we support in the UK have great products that are widely used and respected throughout the world,” said Clokie. “Our service is

Rock casinos in Las Vegas, among many others, the interior.

Hnedak Bobo welcomes Seneca Buffalo Creek opening rchitects Hnedak Bobo Group (HBG) A have congratulated the Seneca Nation on the grand opening of Seneca Buffalo Creek casino in upstate New York in August;

Construction begins in California onstruction has just started on the C Rohnert Park Casino in the San Francisco Bay Area. The project on a 26-

The new Margaritaville Resort Casino in Bossier City

hectare site owned by the Federated Indians of Graton Rancheria and backed

by Station Casinos will see a casino with 3,000 gaming machines and a 200-room hotel. Las Vegas-based KGA Architecture is designing the structure, and the Friedmutter Design Group, which also designed the Cosmopolitan and Red

Kevin Seneca, chairman of the Seneca Nation Gaming Corp with HBG principals Dike Bacon and Rick Gardner

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SECTORS & SERVICES: JAMES WALKER ON Through the looking glass at G2E

ARCHITECTURE DESIGN FOOD & BEVERAGES SOFTWARE LEGAL CONSTRUCTION MARKETING

FACILITIES MANAGEMENT: HVAC Fresh Casino Air in Iowa asino Air, the air purifying comC pany, saw its latest installation come to fruition in June with the opening of the Iowa Tribe’s Ioway Casino near Chandler, Oklahoma. The company will be exhibiting its specialist solutions to remove tobacco smoke and odours from casino environments at G2E.

FACILITIES MANAGEMENT: SECURITY Desert Diamond Casinos upgrade to KeyWatcher Touch

designed to save operators time and inconvenience, while giving the OEM peace of mind that their products are professionally serviced and supported. We have established a very strong working partnership with many key product and component suppliers to the casino industry over the last 10 years and look forward to growing this service further in the future. ”

at the ceremony they heard extremely warm words about their design of the venue, which because of politics, planning and the economy has undergone many changes over ten years of development.

State representative Chris Collins, who was the Erie County executive for much of that period, said: “Compared with what was initially proposed, this fits a lot better.

It’s not competing with anything, compared to the big hotel plans. It fits in the Cobblestone District. I think this will be good for the city and good for Western New York.”

he Tohono O’odham Nation has T invested in and upgraded back-ofhouse technology at its three Desert Diamond Casinos in Arizona. It is a just about to install an upgrade of its Morse Watchmans KeyWatcher key control and management system to the new KeyWatcher Touch system.

The Desert Diamond casinos have been using Morse Watchmans key control systems since 2001. Now to meet state and tribal gaming commission regulations for key control and management, all transactions must be recorded

including time, date and authorised user.

The new KeyWatcher Touch systems that will be deployed will provide additional benefits including synchronisation of information across all of the key control cabinets in the three casinos, helping to ensure system integrity. The upgraded system will be integrated with the casinos’ business/ communication network so email and texts can be sent automatically to authorised individuals.

Locating keys or determining when a key is scheduled to be returned will also be faster and easier.

www.ltgame.com

sales@hk1180.com

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IMPROV AT G2E: “THE SECOND CITY WILL TAKE STAGE FOR A PERFORMANCE THAT WILL INJECT BUSINESS WITH A LITTLE LEVITY..AND IDENTIFY CHALLENGES WITHIN CORPORATE ENVIRONMENTS.”

SOFTWARE Belterra Casino adopts NEWave software oftware developers NEWave have S announced the instillation of their Title 31 Manager software at the Belterra Casino Resort in Florence, Indiana. The program forms part of a suite of software designed to maximise efficiency in the gaming sector. Many of their other offerings will be on display at this year’s G2E , including their newest creation, AuditManager - a paperless auditing system which covers all aspects of casino operations.

designed for casinos that generate more than $1m in annual gaming revenues.

These casinos are required to report currency transactions over $10,000 to assist the Internal Revenue Service (IRS) in uncovering money laundering activities and other financial crimes, including terrorist financing.

“In today’s economy, the last thing you want to do is purchase products you don’t need and more importantly won’t use”, said the company’s Susan Lockett. “Veridocs has designed a modular Title 31 service that affordably addresses the casinos’ immediate needs while creating a foundation for them to expand services as resources become available.”

The service is already deployed in nine casinos in the US while customised services are currently being used in Macau, China and Las Vegas.

FOOD & BEVERAGE Vivreau to debut at G2E

MARKETING & PROMOTION SVM announces gasoline contest roviders of P customer loyalty solutions, SVM, are giving away five $100 gas cards at G2E 2013 later this month.

“Casinos and gaming establishments, particularly those with players’ rewards programs, have experienced much success with our gasoline reward and promotional programs,” said VP of sales, Jim Speir ahead of their arrival at the expo.

GAMING MACHINE COMPONENTS Wynn updates EGM interface

Marshall Reavis, Founder and Chief Executive Office, SVM

ynn Resorts Limited have are to inteivreau, which provides filtered water W V grate the Picture-in-Picture Patron systems to top class hotels and restau- LOTTERY VENDING Display Interface™ into their Las Vegas rants worldwide, is to exhibit at G2E for

FINANCIAL SERVICES GCA to provide digital wallet for Scientific Games lobal Cash Access, which provides of G cash access, cash handling and online payment solutions for the gaming industry, has signed an agreement with Scientific Games to provide payment services and integrated digital wallet functionality for its US-based internet lottery clients.

GCA’s interactive solutions will integrate with Scientific Games’ Sciplay platform, offering a feature-rich digital wallet individually branded for each state's lottery.

“GCA’s products provide us with the security and scalability we need as we continue to provide additional services to our clients, as more US lotteries add interactive lottery and gaming elements,” said Steve Beason, CTO of Scientific Games.

Modular anti-money laundering service launched inancial compliance and anti-fraud Fproduct specialist Veridocs announced a new in August to combat the high cost of Title 31 services, which require compliance with the US Banking Secrecy Act. The Veridocs Modular Title 31 service is a flexible casino management tool

82 | casinoreview September 2013

casino. The system, part of Leap Forward Gaming’s wireless SaffariNet® ecosystem, allows for cardless player tracking, streaming video and rapidly updating promotions to be displayed across selected gaming machines.

the first time in 2013. The company already has an impressive portfolio of clients for its range of environmentally friendly drinking water solutions that eliminate the need to buy-in expensive bottled waters.

Its systems allow guests to be offered chilled still or sparkling water supplied either by the glass or in stylish, reusable bottles: it also offers hot water systems.

Innodisk to showcase SSDs in Vegas

AGCC & Spectrum launch combined initiative

REGULATION

igital storage experts Innodisk have D announced plans to demonstrate their range of solid state hard drives at the upcoming G2E expo in Las Vegas. Among their recent innovations are a series of SATA III drives with Read/Write speeds of 470/220 MB/sec which can be tailored for use within a wide variety of gaming machines.

André Wilsenach, AGCC Executive Director

nline regulator, the Alderney GamO bling Control Commission (AGCC), has joined forces with advisory firm Spectrum to aid fledgling regulatory agencies.

Focussed particularly on the Americas, the Alderney Spectrum e-Gaming Advisors (ASeGA) will offer advice on crafting regulations, staffing, and cooperation between land and internet gaming.

Gaming’s first lottery vending machine released

ong King printing experts, Eastsign, H have unveiled an innovate Instant Ticket Vending Machine designed specifically for the gaming industry. The ES-100M expels 12 different lottery tickets to consumers via a large video screen which can be updated over wi-fi. A backup power supply within the machine ensures that any unexpected outage will not derail incomplete transactions.

Octavian Online Systems Solution

See You in Vegas

The modular and highly tuneable casino management system ACP brings a great choice of functionalities for gaming operations of all sizes.

w w w. o c t a v i a n . c o m . a r

AUSTRIAN GAMING INDUSTRIES GMBH Wiener Strasse 158 2352 Gumpoldskirchen Austria Phone: +43 2252 606 870 443 Fax: +43 2252 607 001

OCTAVIAN DE ARGENTINA S.A. San José 83 Piso 3 C1076AAA Buenos Aires Argentina Phone: +54 11 4383 4131 Fax: +54 11 4383 4131

Stand St d #2654

AGI GAMING COLOMBIA S.A.S. Autopista Norte N. 122 - 35 Lc 2 Edificio Mezco Colombia Phone: +57 1 2130 388 Fax: +57 1 2141 571

Please note that Austrian Gaming Industries GmbH (AGI) has acquired the Octavian companies listed above and certain assets and/or rights to offer ACP and other Octavian products. AGI and the companies mentioned above including their products are not related to Octavian International Ltd. (UK) which is under administration.

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People

Recruitment

RECRUITMENT

New talents sought for a new world

T The advent of online gaming means that gaming executives in the bricks and mortar casinos must have new sets of skills. The old networks are no longer sufficient: casinos have to look further afield as recruitment consultants Neal Wyman and James Theodore of Tyzack Partners found when they brought Olaf Gueldner to Sands China.

here are very few companies today, if in fact any, where the recruitment policies are still based on the ‘old boy’ network. The business world has changed significantly over the last few years, yet it is only recently that the gaming industry has made serious shifts in its recruitment strategies.

Traditionally, executives recruited into gaming firms would generally be sourced within the industry, based largely on who knew who, and contacts within contacts. Fortunately for the industry, that has changed.

One of the catalysts for this change has been the substantial growth in both outlets and turnover. But the biggest driver of change, and one that continues to be so, is the major technology shift that has occurred over the last couple of years. Online gaming is rapidly becoming big business, particularly as a result of the increasing global relaxation of gambling legislation.

Real money commerce in a virtual market has created a growing multi billion dollar industry, and people with the appropriate skills both at executive and nonexecutive level - required by gaming companies to capitalise on the opportunities that lie ahead are simply not to be found within the traditional recruitment network.

The growth of eGaming has created concerns amongst bricks-and-mortar gaming resorts about the proportion of their existing revenues that may be lost to the virtual sector. In response, senior execu-

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Olaf Gueldner joined Sands China from Sportingbet

tives of some major gaming companies have become very proactive, looking to recruit exceptional individuals who have the skills, experience and competencies to address and take advantage of these new challenges. They are not confining their search to the gaming industry but turning to every industry across every continent. It’s a far cry from the very tight briefs we would receive just a year or so ago.

A good example of this change is Sands China’s recent search for a senior vice president and chief marketing officer for Asia.

Of course Sands China is no minnow in the gaming industry. Opening for business in 2004, it operates the largest collection of integrated resorts in Macau.

The organisation has more than 3,400 hotel rooms, some 70 restaurants, 22 hectares of retail and meet-

ings space, two permanent theatres, a 15,000-seat arena and, of course, the world’s largest casino.

Yet its sheer size has not made Sands China totally immune to the potential threats from online gambling. One advantage the company does have is that it is not regarded solely as a gambling venue. Some 2.5m tourists visit Macau each month, with Sands China venues among the most visited destinations attracting families, business visitors and entertainment seekers from around the world.

Although its casinos entertain many very high spending clients from mainland China, corporate executives are now also focusing their attention on attracting mass-market consumers who prefer to gamble for fun. A priority is to identify clearly the needs and desires of a broader range of existing and potential

customers.

With the complexity of Sands China’s collection of businesses and the growing level of competition from the eGaming sector, the brief for a chief marketing officer for Asia demanded an executive with a wide range of skills and expertise who could be successful in both local and global marketing, and culturally sensitive. Since it was unlikely to find a candidate within the immediate gambling and entertainment sector who possessed the required competencies, Sands China was prepared to look at exceptional individuals from outside the industry, as well as from outside Asia.

Outside Asia there has been a notable shift in executive recruitment to gaming and hospitality from banking. Now in Asia companies are beginning to entertain the idea of hiring suitably qualified candidates from quite different industry sectors.

Our search for a CMO, however, was far from straightforward. The candidate needed to possess more than outstanding marketing credentials; they needed to have impeccable HR skills since Sands China employs more than 26,000 people representing 26 countries. Additionally, the organisation wanted someone who could immediately fit into the Asian culture.

For a seasoned and highly experienced headhunter, such a search assignment may not take too long to complete, but this one was challenging to say the least. Well into the search we were wondering

if such a candidate existed.

However, 12 months on and after taking a very lateral approach to the assignment, we had three possible candidates for the position.

One of those was Olaf Gueldner.

A key area of experience required by Sands China was gaming. All three candidates had been in the gaming industry at executive level, but Gueldner’s experience totalled just two years, with Sportingbet in London. However, what Gueldner lacked in gaming experience compared with the other two candidates, he made up for with international management experience, which made him stand out. Prior to Sportingbet he worked with Andersen Consulting in Switzerland, Bain & Company in New York, DHL in Brussels and Avis in London. It was this wide range of industry expertise that first drew him to us.

His education had been just as varied and multi-cultural as his career, starting with University Paris Dauphine in France, then University of Muenster in Germany and finishing off at Leonard N Stern School of Business in New York.

Being multilingual - English, German, French and passable Spanish - was an added advantage for him, as was his ability to work across cultural divides. All this experience wrapped up in someone who was still in his mid-30s made for a highly employable young man. Even though he met the competency criteria for the right candidate, was he prepared to relocate to the

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RECRUITMENT: THE CHANGING FACE OF SEARCHING FOR THE RIGHT PERSON Sands China

“EVEN THOUGH HE MET THE COMPETENCY CRITERIA FOR THE RIGHT CANDIDATE, WAS HE PREPARED TO RELOCATE TO THE FORMER PORTUGUESE COLONY?

Sands China had a complex set of demands for its new chief marketing officer

former Portuguese colony?

The jigsaw puzzle pieces of the assignment were now laid out on the table; it was just a matter of diligently going through every piece to ensure they matched perfectly. Gueldner thought long and hard about the position on offer, asking intelligent questions and working with us to ensure this was the right career move for him. There were other positions we could have put to him but he made the decision to take up the post as CMO Asia for Sands China.

Now that Gueldner has settled into his job in Macau we have had a chance to review the entire search process and assess how the project evolved. It was a challenging assignment and a major learning curve for us despite our many

info@signs4u.nl

years of experience. Headhunting is a bit like being a sleuth. Sometimes the obvious works but more often than not the best results come when the obvious is challenged. Being able to think and act laterally, even though clients will sometimes find this approach to executive recruitment difficult to grasp, is a fundamental requirement when addressing challenging assignments.

The world of gaming is expanding and entering a new era. The recruitment requirements need to keep pace if companies are going to capitalise on the opportunities that lie ahead.

Hopefully, they will see the benefits of looking beyond their own backyard, particularly those operating in the Asian gaming and hospitality industry.

AUTHOR’S PROFILE eal Wyman is a partner at Tyzack Partners. Tyzack is a widely recognised international executive search firm based in London that works with a variety of clients across a range of sectors, including Leisure, Hospitality and Gaming. As the sector converges and clients need to enhance their brand offering, Tyzack’s extensive global network of contacts allows it attract the best executives.

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Events

LAS VEGAS / LONDON / MACAU / PHILADELPHIA / RIO DE JANEIRO

& Diary NOVEMBER 14-16 MACAO GAMING SHOW COTAI EXPO VENETIAN MACAU

MACAO GAMING SHOW

MGS aims for a broader, Asian focus

I As gaming suppliers and operators consider their responses to a second gaming trade show in Macau, Marina Wong, event director of the Macao Gaming Show (MGS), talks to Hugh Sorrill about its aims and objectives.

nternational Casino Review: Why does Macau need another trade show?

Marina Wong: In the US, where the gaming industry is mature, there are many gaming trade shows. For Macau, we need a trade show that caters more to Asian tastes, follows Asian business practices and meets Asian needs.

Macau can become the hub of Asian gaming, offering the convenience of a central location to Asian gaming operators to do business and exchange ideas. This is exactly what the Macao Gaming Show is destined to be, a show that brings in international gaming productand service-suppliers who wish to do business in Asia.

MGS is also inviting non-gaming suppliers who wish to sell their products or services to the gaming industry; the show will help them increase their exposure in Asia. We will help them to connect with the right buyers.

ICR: What side-events will you be hosting?

MW: We are also organising a conference, the Macao Gaming Summit. We are very honoured to have International Master of Gaming Law as our co-organiser. We will be bringing in a panel of international and Asian speakers to share their insights. This year’s theme is “Capitalising on Asian Gaming Growth”. Our speakers will be covering topics such as gaming regulation, gaming business opportunities in each Asian country, investing into Asian gaming.

ICR: Who is supporting the show?

MW: MGS has the blessing of the Macau SAR government. It is the government’s policy to use gaming as the spearhead to invigorate nongaming industries; conferences and exhibitions is one of the key pillars of Macau’s developing industries.

In the gaming area, many big name international gaming equipment and service providers

have given a commitment to join MGS: many are members of the Macau Gaming Equipment Manufacturers Association (MGEMA). As contracts are signed, names of exhibitors will be posted on our website.

For the first time, junkets will exhibit in a gaming show. MGS has received support from the two leading junket trade associations, both agreeing to be our co-organisers. We have already received very strong participation in this sector.

Other gaming segments, such as parimutuel, are well represented too. Horse racing, sports betting, grey hound racing will also be exhibiting at MGS. On non-gaming, we have suppliers from Macau, Hong Kong, China, Taiwan, and Japan showing interest. Products and services covered included security, surveillance, software, telecommunications, food and beverage, environmental equipment, LED lighting, entertainment services, and more. Some have already signed on.

ICR: How do think MGS & MGEMA’s close ties to LT Game will play with potential exhibitors?

MW: Most gaming trade shows are organised by trade associations. MGS is no different.

Most trade associations are spearheaded by a few key players, MGEMA is no exception.

In the electronic gaming equipment industry, manufacturers tend to work in a co-competition mode. They compete with each other on many territories, yet, all working together to advance the industry. Many major international players are members of MGEMA. Key players sit on the executive committee of MGEMA. They work together to promote the interest of the industry in Macau, including lobbying the government for better support in industry and technology development, better

education programmes, and more.

Only by working together will the industry grow. Only by growing the industry will all players get a fair share of this growing pie.

ICR: LT Game and SHFL Entertainment are currently involved in patent litigation. Would SHFL be a welcome exhibitor with its full range of products?

MW: All manufacturers are welcome to exhibit at MGS. SHFL Entertainment, as a manufacturer, is of course welcome to show at MGS. MGS fully respect protection of intellectual property rights. Like any other trade show, MGS has strict rules regarding such matters.

Each exhibitor must fully observe these rules.

All exhibitors are welcome at MGS as long as they respect and observe the MGS rules.

ICR: What is the differentiator between MGS and G2E Asia?

MW: The differentiator is the Asian focus. A trade show is not just about what products we show, although we have non-gaming products and junket presence, which the other show does not. Buyers will also be able to meet a more diversified group of exhibitors; casino operators will get an opportunity to meet junkets who can bring them VIP customers.

Most importantly, MGEMA is by and large an Asian organisation. We understand Asian taste and the Asian way of doing business. We have deep respect for Asian cultures. It will take time for these efforts to gain root in the Asian gaming industry. By then, we will have strong support from Asian governments and industry practitioners to see MGS as a popular place for Asian gaming operators and worldwide equipment suppliers to network, to do business, to share experiences, and most importantly, to have some fun together in Macau.

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Events

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G2E 2013 EXPO 23-26 SEPTEMBER WRB CONFERENCE 22-23 OCTOBER SOCIAL GAMBLING CONFERENCE 6-7 NOVEMBER BRASILIAN GAMING CONGRESS 18-20 NOVEMBER TRADE EXHIBITION

Laughter, learning and leaders at G2E Keynotes

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G2E’s Keynote events kicking off each day of the Las Vegas expo in September will this year feature a sideways look at corporate culture, the unmissable State of the Industry session and an in-depth look at Indian gaming.

G2E 2013 September 22-24 Sands Expo Center Las Vegas

he organisers of Global Gaming Expo (G2E) 2013 have announced a series keynote events designed to offer attendees strong educational experiences and exclusive access to leading industry experts, all leavened with great entertainment.

“This year’s diverse series of keynote events are sure to provide attendees with unique educational and entertainment experiences that can only be found at G2E,” said Courtney Muller, senior vice president of Reed Exhibitions. “Not only will we hear from the industry’s top gaming professionals at the State of the Industry and tribal gaming keynote panel discussions, but we will also kick off our keynotes with what is sure to be an entertaining performance by The Second City improv group.”

Immediately following the Tuesday ribbon-cutting ceremony, The Second City will take stage for a performance that will inject business with a little levity to help attendees create, innovate and connect powerfully. The improvisational skills they use to create the world’s best satire and comedy are the same skills they teach every day to many successful corporations, helping them become more innovative, team driven and nimble. The troupe will use humour and open conversation to honestly identify challenges within corporate environments.

The Second City Improv troupe in action

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OCTOBER 2013 8-10 EiG – European iGaming Summit Fira Barcelona, Barcelona, Spain www.eigexpo.com

22-23 Balkan Entertainment and Gaming Expo (BEGE) Inter Expo Centre, Sofia, Bulgaria www.balkangamingexpo.com

On Wednesday, the annual State of the Industry keynote session will feature five top executives from gaming’s leading operators and suppliers. They will provide insight into today’s important issues and trends, as well as what the future holds for the industry. Moderated by journalist Jon Ralston, known for hosting Nevada’s public affairs programme “Ralston Reports,” the diverse panel of experts includes Holly Gagnon, president and CEO of Pearl River Resort; Virginia McDowell, president and CEO of Isle of Capri Casinos; Tobin Prior, CEO of Ulti-

mate Gaming; Anthony Sanfilippo, president and CEO of Pinnacle Entertainment; and Timothy Wilmott, president and COO of Penn National Gaming.

The keynote series will conclude on the final day of G2E 2013 with a roundtable discussion to discuss a host of tribal gaming issues.

The keynote addresses on Monday and Tuesday will take place 10.30-11.30am, and Thursday’s address will take place 9-10 a.m. All keynotes will be held in Venetian Ballroom G and are open to all G2E attendees.

WrB to reflect shifting political narrative in US iGaming sions to be held on the future of US iGaming.

Subtitled “Rolling out the PowerBall of iGaming”, the twoday event will bring together key thought leaders and politicians from all sides of the US iGaming debate.

Notable speakers include supporters of both state and federal solutions to discuss the best way forward in what promises to be a lively debate.

Amongst other key issues they

SEPTEMBER 2013 23-26 G2E 2013 Sands Convention Center, Las Vegas, USA www.globalgamingexpo.com

21-23 Eastern European Gaming Summit Inter Expo Centre, Sofia, Bulgaria www.eegamingsummit.com

CONFERENCE

ecent key political developments including two federal bills to legalise internet gaming and internet poker, a Senate hearing calling for the tight control of internet poker on a federal level and the call by Rep. Dina Titus (D-NV) for a House hearing to discuss federal regulation, will make the forthcoming WrB (World Regulatory Briefing), taking place in Philadelphia (October 22-23), one of the most anticipated and contentious ses-

| DIARY

will brainstorm the future of state-by-state regulation and the possible creation of state compacts to pool liquidity.

Ewa Bakun, Clarion Gaming’s head of content and the person responsible for organising WrB, believes that October’s gathering of thought leaders is timed perfectly for attendees to be kept fully up to speed on the significant shifts in the political narrative that are taking place in the US. She said: “WrB will be set against

what is a fast moving and dynamic political backdrop. After the failure of the past federal bills, all of the smart money was on multi-state compacts and the opportunity they give to create revenue for the commercial players and for states to help plug, what in some cases, are huge budget deficits. The recent action on the federal level emphasises the necessity for some sort of harmonisation of rules for iGaming, which is exactly what the WrB experts will discuss.”

22-23 WrB (World Regulatory Briefing) Philadelphia, USA www.wrbriefing.com NOVEMBER 2013 6-7 Social Gambling Conference Dexter House, London, UK www.socialgamblingconference.com

12-14 SAGSE Buenos Aires 2013 Centro Costa Salguero, Buenos Aires, Argentina www.monografie.com/ sagse_bsas 14-16 Macau Gaming Show CotaiExpo at Venetian Macau, Macau www.macaogamingshow.com 18 - 20, The Brasilian Gaming Congres, Windsor Barra Hotel, Rio de Janeiro, Brazil www.brasiliangamingcongress.com FEBRUARY 2014 4-6 ICE Totally Gaming ExCeL, London www.icetotallygaming. com

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Kate Chambers

“BRAZIL IS A VERY SIGNIFICANT MARKET ON DIFFERENT LEVELS ... POLITICALLY THERE IS NOW THE WILL TO DEBATE THE BENEFITS OF REGULATION.” CONGRESS

CONFERENCE

Clarion gets goahead for Brasilian Gaming Congress

Social Gambling Conference extends programme Sports events may help open the betting market in Brazil

s Brazil gears up to host the 2014 World Cup followed by the Olympics and Paralympics two years later, the government is reviewing its stance on regulating online sports betting.

Clarion, which stages the ICE conferences, EiG, GiGse and WrB, has been working with the Brazilian government and has had the green light to organise and host the first Brasilian Gaming Congress, which will take place November 18-20 in Rio de

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Janeiro. The invitation-only event will provide international companies the opportunity to listen to and network with the political figures who will be shaping the future of gaming in what is one of the world’s key strategic markets.

Clarion’s Kate Chambers said: “Brazil is a very significant market on different levels. Economically and socially it has a growing, affluent middle class and politically there is now the will to debate the ben-

efits of regulation and to hear the best practice in regulating and operating gaming from around the world.”

The event is being sponsored by Codere of Brazil, Betconstruct, GLI, Inspired Gaming Group, NYX Gaming Group, Tradologic.

More Information Brasilian Gaming Congress Ewa Bakun, Clarion Events www.brasiliangamingcongress.com

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he second annual Social Gambling Conference has been extended to run over two days, and will take place on the November 6-7, 2013, at Dexter House in London.

The Social Gambling Conference 2013 will be covering a range of topics, including: the size and potential of social gaming; the future of real money gaming; compelling slot games and their design; the future of social poker; and the conversion funnel from social to gambling.

Executive Development Program Confronting Challenges and Embracing Opportunities —

Strategic Leadership in the Gaming Industry

The only program of its kind in the world — providing the foundation for superior performance and success in a rapidly changing global environment.

For more information and to apply, visit www.gaming.unr.edu/edp.

University of Nevada, Reno A National Tier 1 University

November 14-23, 2013 Harveys Lake Tahoe Lake Tahoe, Nevada USA

Cosponsored by the University of Nevada, Reno College of Business and Extended Studies and the University of Nevada, Las Vegas International Gaming Institute

September 2013 casinoreview

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If you thought ICE 2013 w ExCeL, London 4 - 6 Feb 2014

Totally Gaming

3 was big, think bigger!

For free entry to the most SENSATIONAL gaming expo in the world register at icetotallygaming.com

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Politics

Ireland

LEGISLATION

Ireland’s draft Gambling Control Bill explained COMMENT

IRELAND

With publication of the draft Gambling Control Bill, the Irish government has signalled the most farreaching overhaul of gambling legislation in two generations - not before time many might argue especially given that the country’s casinos operating as private members’ clubs without a transparent system of regulation. Even so, some of the proposals as they are currently framed do not represent the most modern concepts in casino regulation. Here casino consultant JJ Woods, who specialises in the Irish market, offers an overview of the draft Bill: the government called a very short consultation period to the end of August and there may yet be amendments. Woods will be happy to share his own submission on request.

n July 15, 2013 Alan Shatter TD, Ireland’s Minister for Justice, Equality and Defence, announced government approval for the General Scheme of the Gambling Control Bill 2013. This Bill is a preliminary step towards legislation, which if enacted will provide a significant overhaul of the law in this area and a comprehensive new licensing and regulatory framework for gambling, both land-based and online.

It is important to note that the Bill has no legal effect at this stage. The Joint Committee on Justice, Defence and Equality has been appointed to review and consider the Bill and report back to the government: interestingly the committee issued an invitation for written submissions by interested parties with a deadline set for Friday August 30, which is a short period for this exercise considering the whole issue has been going on since 2006.

The present legislation and existing Acts are: the Betting Act 1931, which applies to betting shops; and the Gaming and Lotteries Act 1956. The Acts are archaic by any standards and fall way behind one of the fastest growing industries in the world.

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OVERHAUL he Gambling Control Bill deals with both land-based services, such as bookmakers’ premises and gaming arcades, as well as gambling via “remote”

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It [the bill] sets out a maximum limit of 40 casino licences that can be in operation at any one time in Ireland and limits the number of tables in casinos to a maximum of 15 and gaming machines to 25

services; remote gambling is defined as under the control of the minister for jusgambling via the internet. tice and his office, as the licensing body The proposed new legislation would for the different categories of licences. apply to all forms of gambling made available in the Republic of Ireland. It would also apply to those companies that make gambling services available through services located in Ireland, even where these services are not available to Irish players. n relation to enforcement, the OGCI officers would be given very wide authorisation to search and inspect premises where they have reasonable cause to believe that an unauthorised gambling service is being provided. The he Bill establishes the Office for OGCI will also schedule visits of premises Gambling Control Ireland (OGCI) as that are registered and licensed to prothe regulator responsible for con- vide gambling services and a report would trolling gambling in Ireland. It would act, be drawn up on their overall compliance.

ENFORCEMENT POWERS

ENFORCEMENT BODY

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IRELAND: THE FRAMEWORK AND RESPONSE TO THE DRAFT GAMBLING CONTROL BILL Ireland’s Parliament ready for change?

“THE DECISION TO TAKE GAMBLING OUT OF THE DARK AGES INTO THE ONLINE AGE IS A POSITIVE STEP FORWARD...[AND] BRING IRELAND IN LINE WITH BEST INTERNATIONAL PRACTICE.”

Alan Shatter TD, Ireland’s minister for justice

clubs providing casino-like services to club members, the legal basis upon which these services are provided is unclear. The proposed legislation seeks to eradicate this position by specifically legislating for casinos and casino games.

It sets out a maximum limit of 40 casino licences that can be in operation at any one time in Ireland and limits the number of tables in casinos to a maximum of 15 and gaming machines to 25. The OGCI will establish criteria on the distribution of casinos geographically, nationally and regionally, to ensure reasonable access and choice for consumers. Any decision regarding a casino licence application will take into account the geographical distribution of applications, the relative population density, the ease of access to the location of the applicant and competition issues.

Alcohol may be sold (with a valid liquor licence) in casino premises on the condition there is a full and complete separation between the area used as a casino and the area where the sale and consumption of alcohol is licensed. Furthermore, alcohol cannot be consumed or brought into the area reserved for gaming.

The OGCI may also make a condition of land-based casinos that persons attending may be required to enter their details in a database maintained by the licensee. The person’s identity may also be verified prior to admittance.

These provisions in practice rule out the introduction of resort-style casinos in Ireland such as the proposed development in County Tipperary.

IMPLICATIONS FOR THE BETTING SECTOR urrently, an applicant may apply for one of the ten types of betting licences at Schedule 1 (Category 1A to 1K) of the Bill. These include licences for land-based bookmakers (including those with partial remote betting), remote betting, on-course betting, betting exchanges, pool betting and spread betting.

Existing licences held by bookmakers vant information gives rise to sufficient conwill continue to be valid until they fall for cern about the suitability of the applicant.

Appeals against a decision to grant or not renewal under the new legislation. At that to grant a licence will be to the District Court. point, they will be required to submit fresh There will be no further right to appeal other applications in accordance with the new than on a point of law of exceptional public procedure.

The Bill also explicitly prohibits fixed interest to the High Court. odds betting terminals (FOBTs). The proposed definition of FOBT is the following: “Electromechanical devices that allow players to bet high stakes, at high frequency, on the outcome of various games and events with fixed odds, where the games are in virtual format...and where the outcome of events is pre-determined by a random number generator generally he Bill also deals directly with casino located on a server separate to where the regulation. Whilst there has been a terminal is located.” proliferation of private members The Bill sets out offences for the supply,

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LICENCE APPLICATIONS s in most other licensed jurisdictions, it seems like the ‘Fit and Proper’ rule will be applied. The Bill requires detailed information to be included in each application for a licence. This includes, among other things, information relating to the games or services to be provided, the equipment to be made available for use by customers, details of the number and type of equipment, the level of stakes and payments of machines, calibration certificates and proposed staffing levels. An applicant must also supply evidence that its premises are in compliance with the Planning Acts: no licence will be issued until planning permission is

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secured.

Further information about the applicant, such as their previous history as a holder of a betting or gaming licence, must be submitted.

If the application is being made on behalf of a company, details including the company’s structure, registration and most recent audited accounts must also be provided.

Applications must then be advertised in a number of local and/or national newspapers (depending on the type of licence being applied for). Gardaí (the Irish police force) will be a third party to all applications with the power to comment on or object to any application.

An application may be rejected where the required information is not supplied, where shortcomings exist in relation to finance, tax or regulatory matters, or where other rele-

IMPLICATIONS FOR CASINOS OR PRIVATE MEMBERS CLUBS

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EDITORIAL Editor: Hugh Sorrill Email: hugh.sorrill@virgin.net Tel: +44 (0)247 667 8077 Managing Editor: Ken Scott Email: ks@sjc.co.uk Tel: +44 (0)1273 699 900 Sections Editor: James Walker Email: jw@sjc.co.uk Tel: +44 (0)1273 699 900 Reporters: Joseph Ewens, Jennifer Riddall

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maintenance and repair of FOBTs. This outright ban reflects the level of Government concern as to the harmful effects of such terminals.

Michael Lowry TD and businessman Richard Quirke would have no possibility to realise their hopes for a casino resort in Tipperary under the new legislation

SAFEGUARDS s usual there is the proposed creation of a fund, called the Social Fund, to promote socially responsible gambling and to assist in counteracting the effects of irresponsible gambling for society, as well as for other people affected by irresponsible gambling. This will be funded by contributions from licence holders and the level of contribution will be fixed by the minister for justice as a percentage of the turnover generated.

The main ways in which this fund will be used are highlighted in the Bill as including public education and awareness-raising programmes, the commissioning or undertaking of research, and assistance in establishing and operating treatment programmes for individuals affected by irresponsible gambling.

SUBSCRIPTIONS Subscriptions: Sarah Haworth Email: shaworth@gbmedia.eu Tel: +44 (0)1204 396 397 Fax: +44 (0)1204 392 748 Publishers GB Media Corporation Ltd, Bolton Technology Exchange, 33 Queensbrook, Bolton BL1 4AY, UK Tel: +44 (0)1204 396 397 Publisher: John Sullivan Email: jsullivan@gbmedia.eu

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OVERVIEW AND BRIEF OPINION he proposed legislation in my opinion and certainly by international standards is more restricted than regulated. The number of casinos to be allowed, and the number of slot machines they have will be able to offer certainly has not been thought out.

Ireland could not possibly sustain the suggested number of 40 casinos aimed at local markets. Considering also that the resortstyle casino has specifically been ruled out in the Bill, the question arises if the government actually wants tourists to visit casinos whilst they are in Ireland. It is debatable, considering the proposed allowance of gaming

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machines, if the business model for the casino would actually survive in any case.

I sincerely hope that after the submission stage that the government makes significant changes to what has been proposed.

The draft Bill it its entirety is available on http://www.justice.ie

GENERAL APPROVAL FOR IRELAND’S CAUTIOUS APPROACH

forward thinking: the press and even the industry seem largely content to replace 57year old legislation with a model deemed modern 45 years ago.

THE COMMENTARIAT

he headline to draw from the Gambling Control Bill proposals for most Irish newspapers was the end of any ambitions for a “super casino”, such as the one proposed by Richard Quirke at Two-Mile Borris in Co. Tipperary.

The Irish Herald said: “Plans on this scale in the wider construction industry were teneform of social policy, particularly in a-penny during the days of the Celtic Tiger controversial areas such as gambling, when madness swept the country. And we has to be delicately handled in conser- saw where that ended. The Gambling Convative Ireland. Needs must when the devil trol Bill is to be welcomed. It's much needed drives however: online gambling is preva- and long overdue, replacing outdated law lent and much too under-regulated. Land- from 1956. As an industry, gambling requires based casinos are also under-regulated but constant oversight and the proposed gamthe proposals in their regard are much less bling regulator should provide that.”

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One of the biggest supporters of the proposed casino resort is the Independent TD Michael Lowry, whose constituency includes Two-Mile Borris. The Irish Examiner quoted him extensively. He said the draft Bill’s proposals were “impractical, unworkable and not financially sustainable in any venue”.

They are “overwhelmingly short-sighted and negative” and a “missed opportunity to modernise our gaming law” in line with European norms… The level of activity that can be conducted in a casino under this Bill is ridiculously low. The cap on gaming machines and tables is so prohibitive as to make these proposed new casino licences commercially non-viable. Due to the curtailment measures contained in the Bill, these new proposed licences will have no appeal to the industry.”

Actually the industry, at least in the form of David Hickson, director of the Gaming & Leisure Association of Ireland, which represents the country’s private members’ clubs, can see the appeal. Hickson said: “The Cabinet’s decision to take gambling out of the dark ages into the online age is a positive step forward. Proper regulation of the gaming sector is good news. It will help prevent criminal involvement and bring Ireland in line with best international practice.”

He added: “A properly regulated gaming sector will lead to additional job creation over time, in both the land-based and online sectors. Currently some 400-500 people are employed in the land-based industry… We are hopeful that the legislation will contain a system of checks and balances designed to protect the weak and vulnerable which is not currently enshrined in legislation.”

Generally welcomed, although probably less so than by high-street bookmakers is the proposed ban on FOBTs. However those same bookmakers are apparently pleased by the provisions to regulate online gambling. Paddy Power said the proposals provided for a “well-regulated gambling sector with consumer protection at its core”. Boylesports meanwhile said that it would “provide legal certainty” for the industry.

J Woods was born in Ireland but left in the 1970s to live in London for a career in banking. He then trained in the casino industry and for the last 30 years has dedicated his career to the design, opening and management of casinos around the world and back in his native land, including the Macau in Cork and Silks in Dublin. Now based in Ireland, he is an acknowledged expert on the subject of casinos and gaming and a passionate advocate of the industry, especially of responsible gambling and customer care, and has given several radio, television and newspaper interviews on the subject. He has also made expert submissions to the Irish government as they consider new legislation.

J

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94 | casinoreview September 2013

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