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News

WWW.CASINOREVIEW-ONLINE.COM • DECEMBER 2013 • EDITION 134

Europe

ECA UNVEILS ITS INAUGURAL STATE OF THE EUROPEAN CASINO INDUSTRY REPORT 4

SOUTH AFRICA

Is a new casino on the Cape Town agenda? AFRICA & MIDDLE EAST NEWS 16

SAGSE 2013 Argentine difficulties fail to drown out the SAGSE spirits

SAGSE 2013 REVIEW 32-37

THE BUSINESS NEWSPAPER FOR THE GLOBAL CASINO INDUSTRY

Casino operator Las Vegas Sands has scrapped plans to build a multi-billion dollar resort in Spain.

ANALYSIS

RESORT CASINOS

Las Vegas Sands scraps ambitious ‘Eurovegas’ project

SPAIN

fter months of ongoing discussions with various levels of the Spanish government and continued internal due diligence, Las Vegas Sands Corporation (LVS) has announced that is has shelved plans to invest more than $30bn (E21.8bn) to develop a series of integrated resorts in Madrid, Spain. “We have reiterated time and again that our internal development process would dictate the outcome of a proposed development in Spain,” said LVS chairman and chief executive officer, Sheldon Adelson. “That process has been extremely thorough, and while the government and many others have worked

diligently on this effort, we do not see a path in which the criteria needed to move forward with this largescale development can be reached. As a result we will no longer be pursuing this opportunity.” “As chairman and CEO, my role is not only creating a vision for the company’s future, it is also fulfilling it in a way that best represents the interests of our shareholders. Developing integrated resorts in Europe has been a vision of mine for years, but there is a time and place for everything and right now our focus is on encouraging Asian countries, like Japan and Korea, to dramatically enhance their tourism

offering through the development of integrated resorts there.” Michael Leven, the company’s president and chief operating officer, added: “We are thankful to the many people who have devoted time and energy in an attempt to bring this development to fruition. The government of Spain, specifically the Regional Government of Madrid, has continuously pursued this opportunity with the interests of the Spanish people in mind and they should be commended for their efforts.” According to reports, the Spanish government had rejected some of the demands put forward by

LVS, including guarantees of compensation in the event of future legislative changes. Regardless, the news will come as a major blow to the capital, as Spain continues to deal with mass unemployment brought about by the prolonged economic downturn. LVS named Madrid as its preferred location for the so-called ‘Eurovegas’ development in September last year, with the capital beating rival Barcelona after a drawn-out bidding process. The project had been slated to include six casinos, 12 hotels and a range of retail and leisure options, employing as many as 250,000 people.

heldon Adelson had long strived to open a Las Vegas-style casino strip in Europe. Leven himself outlined the group’s transatlantic ambition and fielded numerous questions from delegates at an afternoon conference session ahead of this year’s ICE Totally Gaming event in London. However, while Spain may lament LVS’ announcement that it would pull the plug on the ambitious ‘Eurovegas’ project, the company’s decision to place its efforts in high-growth Asian markets will come as no surprise to many industry observers. After almost 15 years of above average GDP growth, the Spanish economy began to slow in late 2007 and entered into a recession in the second quarter of 2008. GDP contracted by 3.7 per cent in 2009, ending a 16-year growth trend, and by another 0.3 per cent in 2010. The country’s unemployment rate, which reached an all-time low of eight per cent in 2007, stood at 26 per cent in 2012. In addition to the Spanish government’s purported rejection of some of the demands put forward by Las Vegas Sands, which included guarantees of compensation in the event of future legislative changes, Adelson was understood to be pushing for an exemption from a national smoking ban, putting Madrid’s local politicians at odds with central government regulators.

CR134-p02-03-World_Coinslot NEW 12/17/13 3:38 PM Page 1

News World

CONCESSIONS & LICENCES

CAI manoeuvred out of Salta, Argentina South America has not been kind to Casinos Austria International in the last few years: now it has unceremoniously ejected from a long-term licence on the basis of an apparent administrative error. Hugh Sorrill reports.

A ARGENTINA

rgentina’s sorry reputation as a place for foreign firms to do business has taken another hit with the ejection of Casinos Austria International (CAI) from the Salta province in the north west of the country where its subsidiary Enjasa held an exclusive 30-year concession to operate casinos, street gaming and lotteries. The state governor announced in August the company’s licence would be revoked; the decision was confirmed in late November when the regulator rejected the administrative appeal and announced the division of gaming concessions. Enjasa was accused of failing to respect rules and regulations concerning

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money laundering. CAI’s spokesman Martin Himmelbauer told International Casino Review: “The situation there is not totally clear to us at the moment and due to on-going legal proceedings we are more or less forced not to comment on the details. We cannot yet determine what the next steps will be.” He continued: “What I can - and wish - to do is clarify the accusations made about money laundering. We have to pay wins of more than 10,000 pesos (about E1,200) in cheques - something we have done strictly. These cheques must then also be noted down in a book - and this hasn’t been properly carried out in a

couple of cases in relation to small amounts, and that in the context of tens of thousands of transactions.” Despite an assurance that Enjasa would have “all the defence processes available to it”, and CAI agreeing to take 100 per cent control of the company, buying out a minority shareholder, the authorities have decided to use what would otherwise be a relatively minor administrative infraction as an opportunity to restructure gaming in the province. On November 25, Decree 3330 was published in the Official Gazette of the Salta province, which divides Enjasa’s licence between 11 operators for an initial

period of six months, during which time the companies must come up with investment and development plans. They must also absorb all the former Enjasa employees. At the same time tax rates will rise: from 16 per cent to 24 per cent for the casinos and the gaming arcades and from 15 per cent to 17 per cent for the lotteries. The rates will rise in staged increases every month over the six-month period. During the appeal process, CAI said it was not minded to take its case beyond state borders in order to reach a mutually acceptable agreement, however, it may now be forced to - and the likely

forum is the World Bank’s International Centre for the Settlement of Investment Disputes (ICSID). Whether that would be possible is a point at issue, however: at the start of this year, Argentina signalled its intention to withdraw from ICSID where it faces dozens of cases and ten of billions of dollars in claims, some to do with government expropriation of private companies’ assets. Money laundering allegations are serious and unless CAI can find a forum in which to have them withdrawn, it could have an impact on the company’s reputation in other markets, including its home market.

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YXYXYXY ARGENTINA / BAHAMAS / JAPAN

ICR NEWS SECTIONS: WORLD 2-35 EUROPE 4-11 ASIA & OCEANIA 12-15 AFRICA & MIDDLE EAST 16-17 NORTH AMERICA 20-23 SOUTH & CENTRAL AMERICA 24-25 COMMENT & POLITICS 28-31 NEW MARKETS Casino Salta, one of two casinos formerly operated by CAI subsidiary Enjasa

Japan casino legislation takes key step forward JAPAN

ollowing many years of false starts, lawmakers from Japan’s ruling Liberal Democratic Party (LDP) have finally submitted a bill to legalise casinos to parliament, bringing the nation closer to opening up what is estimated to be the world’s second-largest gaming market. The bill was jointly submitted with the Japan Restoration Party and other groups, Hiroyuki Hosoda, the chairman of a cross-party group of procasino lawmakers, said early December. LDP’s junior coalition partner New Komeito has approved the submission, LDP’s policy chief Sanae Takaichi said. The parties now aim to pass the bill in the next Diet session that begins in January. “I think the bill will definitely pass,” Kazuaki Sasaki, assistant professor at Nihon University College of Economics, told Bloomberg. “The LDP is supporting the bill and even for those parties that are against the bill, I don’t think they will put restrictions on each member’s vote.” While betting on horse, boat and bicycle races is permitted in the world’s third-largest economy, casinos are currently banned. A competitive bidding process will be needed before one or more casino resorts can being developed and it would take five years after the legalisation before the first casino is operational. While the tender process is set to be a drawn out one, international companies including Wynn Resorts have said they plan to spend billions of dollars to build resorts after the opening of the

ANALYSIS outh America, which had so much potential, has not created the happy experiences CAI was hoping for. It was forced to withdraw from Chile for reasons that combined underperformance at its venue there with lack of returns on several other major projects closer to home. However, this setback seems particularly unfair: the government of Salta appears to have been able to exploit a minor administrative issue to tear up an established agreement and in the process, of course, raise taxes. This is not the first time that authorities in Argentina have reneged on agreements and treated foreign investors indignantly - oil company Repsol is still reeling from the expropriation of its business and Codere, from our own industry was barred from repatriating its profits. And, of course, other companies are having to jump through extraordinary hoops to export to the country to meet balance of trade demands. Future investors in the country will now want to look at safeguards very carefully.

market. Wynn earlier pledged to invest at least $5bn (E3.6bn) in Japan, with this figure being matched by Galaxy Entertainment Group, the Macau casino operator that made Lui Che-woo Asia’s third-richest man. Meanwhile, property developer Mitsui Fudosan, media company Fuji Media Holdings, and construction company Kajima Corporation have submitted a joint proposal for the construction of a hotel casino in Tokyo, should the Japanese government legalise casino gambling. Ryosei Akazawa, head of the LDP’s party’s transport panel, who has been placed in charge of ushering the legislation through the approval process, said: “We are now able to move forward.” The next step will be to take the bill to the party’s policy panel for official backing. While similar efforts to legalise casinos have petered out in the past, Tokyo’s successful bid for the 2020 Olympics has spurred anticipation that the law will be passed. Japan has long been touted as an attractive gaming market with a large and relatively rich population base. The country could generate $10bn (E7.3bn) in revenue a year should it open up the market, Union Gaming Group estimated. So far, the sprawling cities of Tokyo and Osaka have garnered much of the attention for future casino development, but even towns like Sasebo in southern Japan, and the ageing port city of Otaru to the north, are hoping to set up casinos to draw tourists, generate tax revenues and reverse demographic decline.

RESORT CASINOS

Caribbean development continues apace Hotel and casino development among the Caribbean islands has seen a surge in recent activity, with construction projects at all stages of development announcing fresh progress.

JAMAICA

n Jamaica the Ministry of Finance is currently considering four applications to create the first of three integrated resorts on the island. Casino Royale, Amaterra Jamaica, Celebration Jamaica and Harmony Cove have each submitted their own proposal, although to date only Harmony has paid the J$16m (E110,048) application fee. For a project to be successful it must commit to building a resort with at least 2,000 rooms, half of which will be available by the time the venue opens. In the Bahaman capital Nassau, a $3.5bn (E2.5m) luxury leisure development is underway at Baha Mar. As part of the project, Melia Hotels International has been granted control of a beachfront hotel now known as the Melia Nassau Beach Resort. The Spanish resort chain are set to complete their renovation of the 694 room hotel in time for the December 2014 launch of the Baha Mar Casino and Hotel.

December 2013 casinoreview

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CR134-p04-10-Europe_Coinslot NEW 12/17/13 4:51 PM Page 1

News Europe

REPORT

ECA launches first report of European casino industry In the US, the AGA produces State of the States every year. Now, Europe has its own version: the ECA Casino Industry Report 2013 aims to provide a snapshot of the casino and gaming industry in each of the association’s member states. Hugh Sorrill reports

EUROPE

he European Casino Association (ECA), which represents national casino trade bodies at the EU level, has released its first ever survey of the state of the casino industry in Europe. The Casino Industry Report 2013 offers statutory and market update information for every member country of the ECA. Chairman Ron Goudsmit said: “This report represents a milestone in the history of the ECA. It fits perfectly with our mandate to serve as the representative and unified of Europe’s licensed casino industry, as it offers a detailed account of the situation of the industry in our member states and touches upon the important contributions the industry makes to society year in and year out.” All the members of the ECA plus the UK’s National Casino Forum contributed to the information published in the report, which was overseen by two associate members of the association, Herzfeld Consulting and Gambling Compliance.

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“The result is a report that provided a transparent picture of Europe’s licensed casino industry and includes not only economic data but also the information essential to fostering a well controlled and regulated and gaming environment,” said Goudsmit. Through its members, the ECA represents the interests of around 800 casinos and 55,000 employees in 23 countries. The report sets out the state mainly of the landbased industry with substantial reference to online gaming and poker as appropriate. However, it is by no means the comprehensive transparent overview of the entire continental gambling sector that Goudsmit would very much like to see. He said: “In order to be able to capture the full picture of the European gaming industry it would be necessary for all sectors to provide similar audited information. Therefore the ECA calls on all other sectors of the European gaming industry, where this is not yet common practice to follow suit. This effort

would help to put an end to all of the speculation and guessing about the size and revenues of the various parts of the gaming industry in Europe and would provide a valuable tool for all key decision makers and stakeholders.” Not all the sectors see eye-to-eye, particularly when it comes to overlapping markets and competing priorities. Online competition is one of the major issues affecting the land-based industry: unlicensed and illegal operators offer the largest threats but so too do playing fields that are not level. Goudsmit said: “The ECA fully supports the

need for a clear definition of what it takes to be a legal gambling operator. First and foremost, the operator must have a licence to operate in the member state of the player [and] the operator must not be definable as illegal with respect the applicable law and procedures of any other member state. Considering the nature of online gambling, it might be advisable to come to a definition on the legality of gambling operators on a much broader scale that the European Economic Area.”

ECA Chairman Ron Goudsmit

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YXYXYXY BELGIUM / BULGARIA / CYPRUS / HUNGARY / MALTA / NETHERLANDS / SPAIN / SWEDEN / UK The European market state of address

RON GOUDSMIT: “IT OFFERS A DETAILED ACCOUNT OF THE SITUATION OF THE INDUSTRY IN OUR MEMBER STATES AND TOUCHES UPON THE IMPORTANT CONTRIBUTIONS THE INDUSTRY MAKES...”

ANALYSIS REPORT HINTS AT CASINO RECOVERY IN EUROPE urope’s casino industry is by no means homogeneous, either in its characteristics or its fortunes. By any standards the last five years have been truly extraordinary: the Richter-busting economic earthquake was followed by rumbling aftershocks that in some markets have been worse than the initial jolt, causing collapses in the casino customer base; at the same time smoking bans have rippled out across the continent and gambling on the internet, whether legal or not and far less regulated in either case, has risen to be a real threat, as has street level electronic gaming in the form of VLTs. However, according to the ECA report, Europe’s casino industry might finally be turning the corner: in 2012, 40 per cent of the industry reported a year-on-year increase in gross gaming revenues. That still, of course, leaves 60 per cent who are suffering, especially Greece and Italy, which saw, continued contraction, and the formerly strong Switzerland, which has suffered significantly from the increasing strength of the franc against the euro, by which it is surrounded. In 2012, says the report, the ECA member states generated E6.58bn - 6.5 per cent down on the previous year. Notable however was that 80 per cent of that total came from just eight of the 23 countries - France alone generated 35 per cent of the total. The UK, although operating under a mishmash of regulation and legislation, is now growing strongly at above nine per cent to over E1bn in revenues. Europe’s casinos operate under such diverse conditions, it will never be possible to present a unified picture - but all that any of them need at root is a strong economy to operate in.

LICENCE APPLICATIONS

More Hungarian cities chase casino licence A tax amendment to Hungary’s proposed gambling regulations has led to an upsurge in applications to operate in the country, brining the total to 11.

HUNGARY

here are now 11 Hungarian cities seeking a licence to operate casinos it has been reported, a figure that has increased from nine in the summer following a new amendment that has reinvigorated the process. Under the legislative revision, the cities that have submitted casino plans - Gy r, Debrecen, Szombathely, Pécs, Szeged, Miskolc, Nyíregyháza, Szentendre, Hévíz, Gyula and Balatonfüred - would be able to deduct the concession fee from the gaming tax that they must pay under the new law. There are currently just three casinos operating in the country - two in Budapest and one in Sopron near Hungry’s border with Austria - with the Hungarian government having banned slot machine gaming outside of these venues. The ban is thought to have seen the

number of slots operating in Hungary fall from approximately 24,000 to just a few hundred. Under the new amendment to gaming tax, the Hungarian Finance Minister, Mihály Varga, has the power to grant casino opening rights to competitors without a tender, as long as they are ‘reliable gambling organisers,’ have clear, straightforward ownership and have paid all their taxes. Those

EUROPE ROUNDUP

reece’s woes continue to manifest themselves with gambling monopoly OPAP recording a drop in profits for the first nine months of the year, attributing the decline to new national tax laws and the country’s continued economic stress. In the nine-month period to September 30, revenues for the Athens-based group slipped 10.3 per cent to E2.6bn, with net profits totalling E111.7m, down 70 per cent on the E371.7m reported in the comparable period last year. French operator Viking Casinos has invested over E10m in developing its 10th gaming floor at Casino de Fréjus in the Provence-Alpes-Cote

applying without tendering would have to pay double the concession fee and should offer a minimum of HUF100m (€0.3m) for the following year. As one company can maintain a maximum of five casinos and the budget is aimed at nine locations in total (now revised to 11), potentially only a couple of concessions might be awarded licences. One popular measure enables operators seeking to avoid the

d’Azur region in south-eastern France. The casino, which opened on December 13, has created 50 jobs with turnover in the first year of operation expected to reach E12m. The local government will receive €50,000 for the annual contribution plus a tax calculated on the basis of gross gaming revenue. Germany’s 16 state-owned lotteries, meanwhile, have published an open letter calling for the country’s federal government to introduce new regulations to guarantee their role in the country’s gambling market and enforce a ban on illegal operators offering poker, casino and lottery games. The

tender and pay the higher fee, to deduct the concession fee from their gaming taxes. This inclusion is thought to have encouraged plans for more casinos. Speaking out against the new amendment, Socialist MP Csaba Tóth said that the cabinet terminated the slot machine market in 2012 because it claimed the sector posed a risk to national security. He added: “Now you are re-opening it. For yourself.”

letter, also signed by the 16 state sporting associations, explains that in order to maintain the level of funding generated by the lotteries for sports competitions, their involvement in promotional activities for sporting events has to be guaranteed by law. Finally, having made its way across the UK throughout 2013, the Genting Poker Series finally came to rest in Britain’s city of steel Sheffield this month with the start of its Grand Final. Taking place from December 11 and featuring a packed roster of side events and cash games, the GPS Grand Final will peak with an main event that will boast an impressive £200,000 (E238,000) guarantee. December 2013 casinoreview

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News Europe

ICE creative juices are flowing 62

ALL EYES ON ICE: THE 2014 SHOW IS LOOKING TO EXCEED THE 2013 AUDITED ATTENDANCE OF 22,247 WHICH WAS A 4.3 PC INCREASE ON 2012.

ACQUISITIONS

ONLINE

Gala offloads final four casinos

MP calls for greater interaction between land-based and online UNITED KINGDOM

Gala Coral Group has completed the sale of its four remaining casinos to Double Diamond Gaming. UNITED KINGDOM

o, it’s a final farewell to Gala Coral on the UK casino stage. The Group completed the sale of its remaining four UK casinos based in Aberdeen, Bristol, Cardiff and Teesside and a cold casino licence in Dundee to Double Diamond Gaming for an undisclosed sum. The four casinos were excluded from a sale of 19 casinos to the Rank Group in May 2013, following a Competition Commission ruling. Carl Leaver, CEO of Gala Coral Group, said: “This transaction concludes the exit of our casino interests in the UK and is a continuation

of our strategy to focus on growing our core operations. I would like to thank our colleagues at the four casinos for their hard work and contribution over many years, and to wish them every success under new ownership.” Double Diamond is an independent casino operator that owns the Rainbow Casino in Birmingham. Commenting on the deal, Duncan Savage, managing director of Double Diamond, said: “We are delighted to have worked with Gala Coral to conclude this transaction. The acquisition is a continuation of our strategy to build a high quality casino group in the UK. It builds on the success

B of our acquisition and relaunch of the Rainbow Casino in 2010 and we look forward to re-launching the casinos under the Rainbow brand over the Christmas period.” Last month Gala unveiled its full-year results for fiscal 2014. In the 12 months to September 28, group turnover was up six per cent over the previous year, with gross profits up three per cent to £20.5m, reflecting growth in all continuing businesses except the company’s retail division. The sale of 19 UK casinos to the Rank Group for £179m was completed on May 12. “In light of the difficult trading conditions, especially in Q4, the group

posted a satisfactory performance in the year, with gross profit ahead in all our businesses with the exception of Gala Retail,” Leaver said. “Performance in the year to Q3 was resilient, but a prolonged period of abnormally hot weather in Q4 resulted in reduced footfall in the UK retail businesses. This, combined with poor sports results (primarily football), resulted in a material adverse impact on Q4 EBITDA. “Trends in the new financial year have been more positive with results and customer volumes returning to more normal levels, and encouraging growth in our online businesses,” he added.

ritain’s MP for Rochford and Southend East, James Duddridge, has called for online gambling to be accessible inside casinos, on the grounds that the establishments are a more regulated environment. Talking about a new gambling bill that is currently being passed through Parliament, Duddridge said that while the UK government is looking at online and land-based gaming together, the two are still too polarised. Slamming the current position as “ludicrous”, he believes that players would have greater protection if casinos were allowed to offer online gambling within their premises. “It is ironic that a casino is able to advertise outside the establishment,

but games cannot be played online inside it. Quite how we could stop people gambling on their own devices I do not know, but it would be much better to allow casinos to have gambling online within their own premises. That would bring it into the family that has greater protection for problem gamblers.” Duddridge praised Genting Casinos, which operates casinos in his constituency. “The company has invested millions in the economy. It supports the broader community through mayoral charities. All three casinos have been fantastic on responsible gambling,” he said.

CONSUMER PROTECTION

Svenska Spel introduces registration for all gaming In an effort to strengthen consumer protection in the gaming market, Svenska Spel, Sweden’s state-owned gaming group, is rolling out ‘customer cards’ that will be mandatory for those wishing to gamble.

SWEDEN

y summer 2014, Svenska Spel will have introduced compulsory customer cards for all gaming in Sweden, apart from the purchase of physical lottery tickets and gaming inside Casino Cosmopol casinos. According to the stateowned gaming group, the mandatory customer card will be an important tool in preventing problem gambling, further reinforcing age checks and preventing

crime and fraud. It will also make it easier for customers to keep track of their gambling, as both information and activities now can be tailored to the customer’s individual gambling behaviour. “Our decision represents a major effort to strengthen consumer protection on the gaming market,” said Lennart Käll, CEO of Svenska Spel. “We are convinced that a mandatory customer card is an important part of a more consistent and clear approach to responsible gaming, and that it will lead

6 | casinoreview December 2013

to the development of a healthy and secure gaming market. Meanwhile, we must continue to develop a wide range of attractive gaming experiences, so that our customers do not seek out unregulated gambling sites.” Käll added: “The use of our customer card enables us to provide an extended service to the customer, with new features such as information about their gambling history, setting limits with regard to time and money, and suspension from all gaming products and platforms at the Sven-

ska Spel. It also allows us to be more proactive in customer relations and enables us to initiate dialogue with those customers who perhaps gamble too much.” Another effect of the change is that Svenska Spel can make it difficult for those who want to exploit Svenska Spel’s operations for the purposes of fraud and money laundering. “During the autumn, allegations were made about several football matches being fixed, and in some cases we have been able to identify irregular betting

patterns and have reported this to the police,” Käll stated. “This is a development we take very seriously, because fraud of this kind can damage both us and our customers, but above all it erodes the credibility and integrity of sport.” The customer card is already mandatory for Svenska Spel’s gaming site, for mobile gaming and under certain conditions in the retail environment. Customer cards have also been used on a voluntary basis for Svenska Spel’s Vegas machines.

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News Europe

Greece’s financial tides shifting? 56

A GRECIAN T-URN: INTRALOT SHOW SIGNS OF GREEK IMPROVEMENT WITH “THE FOURTH CONSECUTIVE QUARTER THAT WE SEE AN IMPROVEMENT OF THE EBITDA MARGIN...” CASINO OPENING

Amid torrid economic times for the Spanish economy, it’s down to two tourist hotspots to help turn things around. But while the UK ex-pat haven of Benidorm makes a start on its schedule of work, there’s no surprise that trouble may be brewing on the isle of Mallorca where nothing to do with bureaucracy is ever far from a complication.

Palma Balearic Theatre to be converted into new casino

Work starts on Benidorm casino

SPAIN

onstruction on Benidorm’s first casino, which is expected to open in July 2014, has officially begun. Casino Mediterráneo announced the start of the work on its new gambling and entertainment venue in the Spanish holiday resort with an honorary act of laying the first foundation stone, attended by the Mayor of Benidorm, Agustín Navarro, the first Deputy Mayor and Councillor for Tourism, Gema Amor, the President of Casino Mediterrá-

neo Alamo Barajas and its CEO Jesus Antonio Barajas. The new casino, which will be located in the Rincon de Loix, on the Avenida del Mediterráneo, will occupy an area of 3,600 square metres in an urban complex that will also feature a shopping mall and 4star hotel in the future. The investment in the construction of the building is E1.8m and the new infrastructure is expected to create around 70 jobs. The ground floor of the casino will house most of the

he bids for a second casino on the Balearic island of Mallorca have been considered and permission has been awarded for a group of local businessmen to convert the Palma Balaeric Theatre into the Gran Casino Theatre Balear. The group narrowly beat off competition from Merkur and Nervion - the operator of the existing casino on the island - which scored 74.62 and 75.48 respectively, compared to the Balaeric Theatre project’s 76.69. Due to open within a year, the new venue in Rosello Olivar market square will cost E10m and create 170 jobs, bringing a casino, conference, restaurants, bars and an auditorium to the old theatre. The renovation will see the location include 70 slots and 13 gaming tables, as well as bingo provided by Eusebio Cano. It is hoped that the new casino will revitalise the downtown Palma area, a location that the project’s group says mirrors the current trend for casinos in Spain to be located in city centres. The group’s victory is likely to be challenged by the losing bids, with Nervion for Platja de Palma, which was considered to be the favourite at one stage and the one with the backing of local government, scoring five points in the category marked ‘proven experience in similar projects’, compared to its two competitors that scored zero in that category. However, the most recent round of voting based on the ‘personal and financial guarantees provided’, saw the Balearic Theatre score 8.03 points, Bendinat 10, with Platja de Palma receiving just 0.01, which undoubtedly left a question mark hanging over the reliability of the investment.

gambling activity including slot machines, table games, a poker room and sports betting, while the first floor will be used for poker tournaments. The property will also feature a space for culture through its multi-purpose room to be located on the second floor along with a terrace of 300 square metres. The Benidorm casino will follow a similar aesthetic to that used for Casino Mediterranean Orihuela with its corporate blue and gold palm tree.

OPERATIONS

DISPOSAL

Holland Casino to implement further staff cuts

Partouche looks to ease debts

NETHERLANDS

olland Casino, the beleaguered Dutch stateowned casino group, is cutting a third of its head office staff as part of a new strategy to decentralise operations and increase competitiveness in the country’s soon-to-be demonopolised gaming market. The Hoofddorp-based company said it would give its 14 casinos more say in how their individual operations are run, enabling its headquarters to

shed a further 100 out of 350 jobs. Two separate announcements earlier this year led to the loss of 500 jobs. According to reports, Holland Casino is likely to book

8 | casinoreview December 2013

losses of E30m this year, with debts expected to increase from E60m to E100m, as the group continues to face declining visitor numbers and increased competition from online gambling outlets. The operator reduced its workforce by 800 between 2008 to 2012, during which time turnover dropped by 30 per cent. Chief executive WillemJan van den Dijssel said the company had to reduce personnel costs by 18 per cent by November 1 in order to keep the business viable.

BELGIUM

rench casino operator Partouche has sold one of its four casinos in Belgium via its holding company Belcasinos to online casino group Napoleon Games for E16.5m. The sale does not include Jackpotparty.be, which operates under an A

licence issued to the casino. Last year, Knokke recorded gross gaming revenue of E12.1m and contributed positively to the group’s consolidated EBITDA of E0.9m. Partouche has been struggling to pay debts of around E230m debt and plans to sell more of its assets in Spain and France as it is faced with potential action from its creditors.

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CR134-p04-10-Europe_Coinslot NEW 12/17/13 4:55 PM Page 5

News Europe

Russia: Belarus flies flag for gaming 62

RUSSIAN GAMING WEEK: AROUND 1,500 INDUSTRY PROFESSIONALS VISITED RUSSIAN GAMING WEEK TO SAMPLE THE OPPORTUNITIES AFFORDED BY THE REGION’S GAMING INDUSTRY. LICENCE

GAMING TAX

Plans to grant temporary casino licence to Cyprus operator CYPRUS

Authorities approve Bulgarian gaming tax reduction Bulgarian politicians have voted to approve amendments to the country’s Gaming Act that will see a threefold reduction in gambling taxation levels. BULGARIA

he Bulgarian Parliament has approved new amendments to the eastern European country’s Gaming Act that will change the current 15 per cent tax on turnover to a 20 per cent tax on profits. Motioned by Member of the Parliament of the Bulgarian Socialist Party (BSP) and the Movement for Rights and Freedoms (DPS), the vote to change the way gaming taxes are calculated in Bulgaria passed with 110 votes in favour, 79 against and two abstentions. A corporate tax will now be introduced on bookmakers, lottery and lotto games organisers, as well as poker and online casinos. Under the terms of the new tax structure, licensees will pay a one-off fee of BGN100,000 (E51,127), with a second fee - comprising of 20

per cent of the difference between the bets’ value and the paid winnings - being paid monthly. It is thought that the legal amendments will result in a threefold reduction in Bulgarian gaming taxes and encourage more investment in the region. Yordan Tsonev, chairman of the parliamentary budget committee, said tax revenues would increase by BGN50m (E25.6m) by 2015 as a result of the change, and by BGN100m (E51.1m). Initially, the new tax will benefit operators offering sports events betting, such as Eurofootball, Eurobet, the National Sports Totalizator and Eurofootball. Foreign bookmakers have been indicating for quite some time that the 15 per cent tax rate on sports betting and events turnover is too high, because over 90 per cent of the earnings are returned as profits.

BEGE The pulse of the Balkan, and indeed the entire region’s gaming industry, was measured against the backdrop of prospective legislative change when the sixth edition of the Balkan Entertainment and Gaming Expo was held on October 22-23 in the Bulgarian capital, Sofia. Drawing an audience of more than 2,000 visitors, the event was officially opened by Ognemir Mitev, chairmen of the state commission on gambling, and Angel Iribozov, chairman of the management board of trade association BTAMOGI. The Bulgarian industry was represented by leading manufacturers and distributors of entertainment and gaming equipment and software solutions. The leading Bulgarian manufacturer, Casino Technology, introduced its newest versions from the multigame

series Gamopolis Highway, along with the latest developments of the server-based and online solutions. “More and more international leaders are presenting at BEGE expo, and some of them are participating at the show for second, third or fourth consecutive year,” said the show organisers. “In 2013 their latest innovations presented the following companies: Apex Gaming Technology, Abbiati, Advansys, Betconstruct, Fininvest, Future Gaming, Gaming Support, Interblock, Vermantia, Microgaming, Suzo-Happ, SB Tech, Spielo International, Syswin Solutions and StylGame. The entertainment sector was presented by the Advanced Technology Research, Sega and Sound Leisure. “ The exhibition ended successfully with positive feedback from both exhibitors and visitors.

he government in Southern Cyprus has said it plans to grant the winner of a licence for a single integrated casino resort the right to operate a temporary casino for two or three years until the creation of the integrated resort. Energy and Commerce Minister Giorgos Lakkotrypis said at a press conference at the end of November that this will allow the government to start receiving revenue, adding that securing the licence will become more attractive because the winning consortium won’t have to wait two or three years until there is liquidity. The target is to license the casino within 14 months. The government’s decision to move forward with just one casino licence has caused great controversy on the island with complaints that only one of the districts will benefit from the economic boost that the new casino will bring. The Mayors of Cyprus’ five main districts believe that there should be a number of licences strategically designed and placed to appeal to the various tourist segments that Cyprus attracts.

SOCIAL MEDIA

Malta casino licences at risk over social media advertising MALTA

asinos in Malta that advertise on social media sites like Facebook could face charges and be risking their licences they have been warned. Although the Maltese Gaming Act allows casinos to advertise in tourist spots

such as airports, hotels and holiday complexes, legislators are warning that social media advertising does not fall under the guidelines set out in the law. “Online advertising on social media by all licensed land-based casinos and gaming establishments are regulated by the LGA, and the licensees must ensure compliance with the

10 | casinoreview December 2013

laws,” LGA executive chairman Joseph Cuschieri explained. The LGA warned that it would ‘take all the necessary actions as is pertinent to it at law if it is confirmed that the provisions are being breached’ after investigating any possible breaches. Cuschieri added that the LGA will request the

licensees in question to provide submissions justifying their position. Under the current law, any director or manager of a casino found guilty of breaking gaming legislation could have their casino license cancelled, as well as facing a fine of up to E233,000 or a maximum two-year imprisonment.

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CR134-p12-14-Asia_Coinslot NEW 12/16/13 3:10 PM Page 1

News

Asia & Oceania

RESORT COMPLEX

According to the developer, Manila Bay Resort potentially the jewel in the crown of the Entertainment City project in the Philippine capital - will see phase one opening in 2015. Hugh Sorrill reports.

PHILIPPINES

Okada restarts work on Manila Bay Resort

onstruction on the Manila Bay Resort complex, what will - or rather could - be the largest of the casino resorts planned for Entertainment City, has begun again, according to an announcement from Tiger Resort, Leisure and Entertainment Inc, the subsidiary of Japan’s Universal Entertainment. Recommencement came just a month after Universal signed land development deals with Century Properties Group, which has stepped into a breach formerly occupied by Robinsons Land Corp until last May when negotiations fell apart. This is a rare piece of positive news for Universal. The project has been beset by delays and controversy dating back years, not least because of a land owner-

12 | casinoreview December 2013

ship issue that the agreements with Century will help resolve. The development company for the project Eagle 1 Land Holdings was 64 per cent owned by Universal through various subsidiaries. That put it in breach of a Philippines legal requirement limiting foreign ownership to 40 per cent. One of the deals sees Century acquire five hectares of the 44-hectare site; the other sees it acquire a 36 per cent interest in Eagle 1 itself. Universal has also sold preferred stock to another company First Paramount Holdings 888. Together the deals mean more than 60 per cent of the company is in Philippine hands. With the project going forward, Masahiro Terada, president of Tiger, said the

company’s timetable is still on. He confirmed: “We’ve already started our construction, which will consist of several phases, three or four, but we’re on track for our 2015 target.” Universal has already invested US$200m (E148m) in the project, however, the planned investment by the company is ten times that at $2bn (E1.48bn), out of total expected investment of around $5.75bn (E4.24bn). Universal and its boss Kazuo Okada still face significant challenges, not least the prospect that the gaming licence might yet be revoked. The company is facing two separate investigations, one by the FBI in the United States, the other by Philippines authorities, into allegations of bribery,

specifically suspect payments alleged to have been made by a Universal shell company in Hong Kong to a close associate of the former head of the Philippines Amusement Gaming Corporation (PAGCOR), the regulator and currently largest gaming operator in the country. Along with other allegations, that was enough to have Okada, formerly the largest investor in Wynn Resorts, expelled from that company’s board and his shares compulsorily purchased at a discount, losing him millions. Wynn was already upset at Okada’s Manila project, believing it to be a direct competitor to its expanding interests in Macau. A year after the allegations of malpractice were first made, investigations and lawsuits are continu-

Kazuo Okada, chairman of Universal Entertainment

ing. A case brought by Universal against Wynn in Tokyo for defamation was summarily dismissed in November, although Universal may yet appeal. If it overcomes these hurdles, Manila Bay Resort will be four times larger than the Solaire, which opened in March. In addition to the casino and associated VIP facilities, it will feature hotels at different price points, luxury shopping mall as well as food and beverage.

CR134-p12-14-Asia_Coinslot NEW 12/16/13 3:11 PM Page 2

AUSTRALIA / INDIA / PHILLIPINES / SINGAPORE / YXYXYXY VIETNAM Manila Bay Resort: Back on track

MASAHIRO TERADA: “WE’VE ALREADY STARTED OUR CONSTRUCTION, WHICH WILL CONSIST OF SEVERAL PHASES, THREE OR FOUR, BUT WE’RE ON TRACK FOR OUR 2015 TARGET.”

One more hurdle has been jumped by Universal in its bid to develop what may be the largest resort in Entertainment City: the pool will be a central feature

ANALYSIS

he risk with any big project such as Manila Bay Resort is that the people who start it off may not end up being the people who run it. Usually that happens because of financial difficulties, however, in this case there are many different factors at play. The claims of bribery and graft are extremely serious and have yet to reach their conclusion: any guilt there would immediately mean the end of Universal’s involvement. The company’s difficulties with Wynn Resorts largely have no direct bearing on the Manila project but they are a distraction. One of the few issues unlikely to upset plans is finance: Universal generates a lot of money from its Pachislot and Pachinko business. However, it takes more than money to be able to operate a casino resort - reputation counts for a lot.

EMPLOYMENT

Jobs when jobs are needed

anila Bay Resort expects to deliver thousands of jobs for Filipinos. Tiger’s vice president Kenji Sugiyama said: “Our target is to really attract lots of people, local and foreigners, and in the process be of great help to the Philippine economy and employment.” He said that a lot of Filipinos work overseas as hotel and restaurant staff: “That’s one of the big reasons to create employment here for more than 15,000 Filipinos, almost 95 per cent will come from the Philippines, five per cent from expatriates.” The jobs will be very much needed in the wake of recent natural disasters, including Typhoon Pablo of 2012 and Typhoon Yolande in early November, as well as the Visayas earthquake. Sugiyama said: “It is part of our mission to extend a helping hand to those in need.”

CASINO RESORT

Deltin Group unveils plans for casino resort in Daman India’s first integrated casino company, Deltin Group, are planning to launch their first resort in the city of Daman. And what an ambitious plan it is.

INDIA

he chairman of parent company Deltin Corp, Jaydev Mody, recently unveiled details of the group’s construction project in Daman. The proposed resort would be known as The Deltin Hotel and is slated to launch in the first quarter of 2014. Once opened it will become the largest casino in India. The property stretches across 10 acres, incorporating 35,000 square feet of casino floor and 168 rooms. An all day restaurant, specialty restaurant and pastry shop will sit alongside a gym, pool, and spa with eight treatment rooms. The finished article will be equipped for conferences in the grand ballroom or four small function rooms, which are served by parking for up to 250 cars. Daman, which occupies the country’s western coast, is one of only three Indian locations that currently

permit live gaming. It’s proximity to Mumbai and Gujarat make it an obvious target for development. “Daman is near Mumbai, so we expect a good number of people coming to our hotel,” said Jaydev Mody. “ Goa and Sikkim also permit casinos within their borders and Deltin group have announced that proposals for a casino in Sikkim are at a very early stage. Deltin’s plans extend beyond the bounds of India into Nepal and beyond, as Mody explains: “We have already acquired property for the casino resort in Sri Lanka and the company is exploring

the emerging Sri Lankan gaming market, which is poised for rapid growth.” Indians make up 28 per cent of the visitors to Sri Lanka, with groups such as James Packer’s Crown Resorts looking to establish a flourishing casino market in the country. Reflecting on the forthcoming Delting Hotel, Mody affirmed that, “our primary focus has always been on providing premium experiences, as we stand for luxury and glamour at each of our properties and the Deltin brand is an accurate reflection of that.”

ACCESS

Vietnamese permitted to gamble on home soil The Politburo of communist Vietnam have caused shockwaves by allowing locals to access casinos for the first time.

VIETMAN

iewed as a u-turn on the government’s previously staunch opposition to native gambling, the move to allow Vietnamese access to casinos has come as a surprise to many both inside and outside the country. Initially, only a certain subset of Vietnamese will be allowed to gamble in their home country and only in a particular casino, which has yet to be constructed. The unfinished structure, planned for the Van Don Economic Zone, is one of many casinos on Vietnamese soil that have to date been created solely for the use of visiting foreigners. The Chinese, in particular, are a key source of revenue for the existing Vietnamesse casinos. Meanwhile, those locals who do wish to gamble head across the border to locations to like Macau, Hong Kong, or Cambodia. The latter is a particular concern for gov-

ernment officials, as there are numerous reports of kidnappings and other offences being committed against Vietnamese citizens who travel across the border to gamble. The announcement was made by Nguyen Thi Kim Ngan during a meeting of the Standing Committee to discuss a bill on betting and gambling. Her comments were particularly surprising following a decision by the same government just a month previous to increase the fines levied against casinos which allow entry to locals. Operators who allow Vietnamese nationals to gamble can be fined up to VND200m ($9,500). Ngan stated that the government is looking to curb the amount of local currency leaving the country to be levied elsewhere. Some within the country have also speculated that the Politburo may be motivated by the potential for increased revenue from gambling taxes if the gambling money spent by their citizens is wagered inside the country’s borders.

December 2013 casinoreview

| 13

CR134-p12-14-Asia_Coinslot NEW 12/16/13 3:12 PM Page 3

News

Asia & Oceania

Jamie Odell 53

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CASINO COMPLEX

PERFORMANCE

Packer endures more delays in Sri Lanka

Gambling revenues fall dramatically in Tasmania AUSTRALIA

Australian casino mogul James Packer faces further legislative delays as his planned Sri Lankan resort hits another governmental hitch. AUSTRALIA

ames Packer’s Crown Resorts intends to construct a $400m resort and casino complex in the centre of Colombo. It is hoped that a prime location in the capital’s Economic District, close to neighbouring India’s burgeoning economy, will result in high yields from gambling tourism, just as Macau has benefitted from Chinese visitors. Packer has learnt this lesson well: he is one of the primary investors in Macau and has benefited massively from the region’s casino boom. But, things are not going as smoothly as initially hoped. On the positive side, Crown’s plans have already been approved once by the Sri Lankan cabinet. But, and here comes the bad news, investment and promotion minister Lakshman Yapa Abeywardena has since argued that the proposal would need to be re-evaluated in light of changes to tax payments. Having made alterations to the original proposal, the government then claimed that Packer’s plans would receive another viewing before November 21. That date has now passed and Abeywardena has confirmed that it may well also miss the

deadline for this year’s session. He told Reuters that pressures from this year’s annual budget had superseded concerns about the proposed resort. However, reports have suggested that opposition politicians had sought to delay the process after arguing earlier that Packer was receiving tax breaks not afforded to Sri Lankan entrepreneurs. Leaders from the Buddhist faith, the country’s primary religion, had also voiced concerns that the resort could be detrimental to the culture of Sri Lanka. This hold up is the latest in a series of delays that began when Packer was forced to alter his original construction plans. The casino is being constructed under the aegis of Lake Leisure Holdings, a joint venture company comprised of Crown and their local partners, RankEntertainment Holdings. Representatives from Rank seemed unmoved about the delay, explaining that the plans may well be approved in January or February 2014, which would not provide any impediment to the overall construction project. A Crown spokesman was equally sanguine about any stalling on the part of Sri Lanka officials, confirming that discussions were ongoing and that his company had anticipated delays caused by the yearly budget debate.

ambling participation among Tasmanian residents has fallen to its lowest ebb since 2005, as revealed by the Tasmanian Gambling Commission’s annual report. As part of a study on the social and economic impact of gambling, the Commission indicated that participation in all forms of gambling had fallen 65.2 per cent during 2011. Analysing figures from the 2011-12 financial year also revealed that player expen-

diture fell A$5m when compared with the previous 12 months. Federal Group, who operate the two licensed casinos on the Tasmanian mainland, blamed the introduction of more than 60 complex new casino rules for millions in lost profit. Poker machines suffered in particular, seeing a 14 per cent drop in takings over the previous year. During 2011-12 the island’s two casinos lost A$13 million in revenue from pokies. Sports betting was the only gambling activity to see increased participation.

ACQUISITION

Tony Fung buying his way into Australia AUSTRALIA

t has been revealed in an official statement that media and retail tycoon Tony Fung has expressed his intent to purchase Reef Casino Trust. Fung’s desire to enter the Australian casino market has long been known, after he submitted plans for a A$4.2bn resort in the city of Cairns, Queensland. That proposal

remains before the Australian government, but may become redundant if he completes the purchase of Reef, who currently operate the only casino in Cairns. An offer of A$4.2bn has been

made to the casino trust, which placed a 53 per cent premium on the closing stock price at the time of the announcement. In response to the news, Reef Casino’s stock rose 40.5 per cent in a single day. The group’s largest stakeholders, Casinos Austria and the Accor Group, have indicated that they are happy for the sale to proceed, although the deal is contingent upon Reef first purchasing Casino Canberra.

PARTNERSHIP

LVS scores David Beckham partnership SINGAPORE

esort developer Las Vegas Sands (LVS) and Beckham Ventures have announced a partnership which will see one of the world’s most iconic sports stars, David Beckham, join forces with LVS’s powerful integrated resort properties in Macau and Singapore. The partnership will be based around the development of dining, retail and leisure concepts at Sands China properties in Macau

and Marina Bay Sands in Singapore. “We have billions of dollars invested in our own global, iconic brands and we clearly understand the importance of growing and sustaining those brands over time,” said Michael Leven, president and chief operating officer of Las Vegas Sands Corporation. “The odds are extremely high that a partnership with David Beckham will help us further those efforts and provide David with the same benefit.” David Beckham was equally

14 | casinoreview December 2013

enthused: “The Sands team has created amazing resorts in Singapore and Macau. The scale, vision and calibre in all that they do is impressive. I am very excited to be working with them to develop a range of new business ideas in a part of the world that I love spending time in and is full of optimism and growth.” Edward Tracy, president and chief executive officer of Sands China, said: “In Macau, Sands China has worked to not only transform the tourism industry by providing a diverse set of

entertainment offerings, but also by seeking out active engagement with renowned brands and providing a unique experience to the people in and around this area of the world when they visit Cotai Strip Resorts Macau. “David Beckham’s wellknown personal values and his endeavours in both business development and community outreach make a perfect match for our two brands to come together in a way which is sure to positively impact the Asian market.”

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CR134-p16-17-Africa_Coinslot NEW 12/16/13 3:45 PM Page 1

News

Africa & Middle East

The likelihood of the Western Cape provincial government approving a licence relocation from one of the countryside casinos to the Cape Town is increasing. As Hugh Sorrill reports, we could see bids within the year.

LICENCE RELOCATION

The V&A Waterfront and the Cape Town Stadium, both possible locations for a second Cape Town casino

A new casino on the cards in Cape Town? SOUTH AFRICA

he Western Cape provincial minister (MEC) in charge of finance, economic development and tourism, Alan Winde, has said he wants to see bids opened for a second casino in Cape Town. The zonal exclusivity enjoyed by Sun International’s GrandWest located in Goodwood, a suburb about 10km from the city centre, expired in 2010 after ten years. Even before it expired, speculation about the future was building - although the difficult economic conditions dampened any radical ambitions. The provincial government has stated its aim but there are several hoops to jump through first. In November Winde said: “At this stage no legislative changes have been made, Provincial treasury is currently in the process of updating economic information and studies, which will inform the next step. We recognise that casinos can generate jobs but we have to take several

16 | casinoreview December 2013

factors in account before we make a responsible and informed decision. We will keep the public updated.” His department has been consulting both the province’s operators, which together run five casino resorts, over whether to move ahead on what could be a lucrative development. It is due to report by February, however, in early December, Winde had already changed his tone somewhat outlining a potential solution that would keep all the stakeholders happy. He said: “No casino licence lapses. Those that have got their licences keep them. The decision we need to take is, do we leave the geographic space and allow no casino to move, or would we allow one to move. And if we allowed it, would it be beneficial for us from a taxation point of view if it moved to the city? I believe the answer is yes.” So far the fashionable V&A Waterfront and the Cape Town Stadium, both

situated at Green Point have been suggested as possible locations. There is certainly high interest for operators in relocating to an almost guaranteed prime position within the city. Marcel von Aulock CEO of Tsogo Sun, which operates three casinos in the province, said in his company’s first half results that

it would bid for the licence if it came up in order “to compete with Sun International’s GrandWest Casino”. In addition to GrandWest, Sun International also operates the Golden Valley Casino in Worcester, as well as the five-star Table Bay Hotel on the V&A Waterfront. Sun’s Michael Farr, speaking to the Cape Argus, said: “We have had no indication from provincial government that changes to policy have taken effect and thus we are not aware that any bidding process for the relation to the licence in the Western Cape has been initiated.” In its interim results issued in September, Sun said: “The potential to bid for the relocation… remains an opportunity for the group, although the recent increase in provincial taxes in the Western Cape has made this a less attractive opportunity than before. Alan Winde MEC, finance minister

ANALYSIS hatever happens, the essential duopoly enjoyed by Sun International and Tsogo Sun in Western Cape looks set to continue as a brand new sixth casino operating licence appears to be out of the question. A new licence would almost certainly dilute the market, which neither operator would want of course. Any new casino in Cape Town would put the squeeze on GrandWest that cannot be avoided. As far as Sun is concerned, therefore, the best outcome for them would be to relocate the Golden Valley licence, probably to the Table Bay Hotel. Tsogo Sun is obviously keen to win and it may well have the better chance: a strong argument in its favour is that it is better to have competing operators serving South Africa’s largest tourist city.

CR134-p16-17-Africa_Coinslot NEW 12/16/13 3:48 PM Page 2

ISRAEL / SOUTH AFRICA YXYXYXY Sun sets sights on South America 25

SUN INTERNATIONAL: SUN SAID IT PLANS TO INVEST A FURTHER AMOUNT OF $60M TO BUILD OUT AND FULLY DEVELOP THE MULTIPLE SPACES AT ITS EXCLUSIVE PANAVIERA IN PANAMA. CONFERENCES

PERFORMANCE

Tsogo Sun continues to pursue expansion opportunities

Africa gaming summit addresses key industry issues SOUTH AFRICA

he inaugural Big Africa Summit took place at the Indaba Hotel in Johannesburg, South Africa, on November 4-6, establishing itself as a key meeting point for online and land-based gaming professionals. At the event, delegates discussed the latest changes in gaming technology, how these changes will impact the gaming industry and how technology can improve operations, increase revenue and control costs in African casino operations. The keynote opening presentation was delivered by Themba Ngobese, CEO of the Casino Association of South Africa (CASA), who offered a review of the South African gambling industry and its regulation. Ngobese said: “CASA members have to date invested in excess of ZAR30bn (E2.1bn) in infrastructure, leading to the development of work class entertainment destinations incorporating more than 7,800 hotel rooms, convention centres, tourist attractions, theme parks, sports facilities and restaurants.” Also at the conference, Nikki Forster, head of PricewaterhouseCoopers’ hospitality and gaming division in South Africa, discussed the second edition of the group’s Gambling Outlook report that was launched in November. According to Forster, casino gambling accounts for 79 per cent of the industry, generating revenues of ZAR16.4bn (E1.1bn) last year, followed by

sports betting (12 per cent of revenues), limited payout machines (seven per cent) and bingo (two per cent). Forster noted that gambling is a major source of revenue for the South African government, generating ZAR2.1bn (E147m) in gambling taxes and levies. Gross gambling revenue increased by 13.4 per cent in 2012 to ZAR20.9bn (E1.5bn) and it is forecasted that it will increase to ZAR29.8bn (E2.1bn) in 2017. Forster was confident that online gambling will be legalised in the next five years. Andrew Crone, IT portfolio and quality manager at Sun International, addressed a range of questions surrounding the future growth of South Africa’s casino industry at the Big Africa Summit. “Gaming companies need to link IT strategy to the business strategy and start driving the innovation curve,” he said. Stuart Wing, chief operating officer from Sun International, added: “The focus is shifting to what the customer wants. Transactions and loyalty programmes will become seamless between casino loyalty clubs and the online environment. Gaming machines and table games will be played away from the device or table on tablet-style devices, thereby reducing costs and expanding distribution points within the casino. Social gaming will become an integral part of a companies offering. Games of skill will be commercialised and become part of the total gaming offering.” The second edition of the Big Africa Summit is scheduled to take place on October 6-8, 2014.

Tsogo Sun delivered a robust first half performance supported by acquisitive growth, despite the pace of growth being slower in the second quarter. SOUTH AFRICA

otel and gaming group Tsogo Sun delivered yearon-year growth in both hotel and casino revenues for the six months ended September 30. The group reported adjusted headline earnings per share of 81.3 cents, up 20 per cent on the prior six months and nine per cent growth in earnings before interest, tax, depreciation, amortisation and property rentals, long-term incentives and exceptional items (Ebitdar) to R2.0bn (E0.14bn). CEO Marcel von Aulock said: “The group has delivered a solid performance. Although the pace of growth slowed in the second quarter, the group is highly cash generative and excellent progress was made on our growth strategy with R1.3bn (E0.09bn) invested into expanding and upgrading existing assets and acquiring other strategic interests during

the period. “These results reflect the growth potential of the group should the consumer and corporate sectors of the local economy continue to improve. There is volatility in the monthly results, which creates a degree of uncertainty around the sustainability of the growth, but we continue to pursue opportunities to expand our business.” Total income for the six months grew nine per cent to R5.2bn (E0.37bn), driven by a six per cent increase in gaming win, a 17 per cent increase in hotel revenue and a 21 per cent growth in food and beverage revenue. Revenue for the gaming division increased by seven per cent to R4 billion (E0.29bn), and Ebitdar improved six per cent to R1.6 bn (E0.11bn) at a margin of 39.8 per cent, 0.4pp below the prior period. With the exception of

Golden Horse and Mykonos, all gaming operations reported growth in revenues and Ebitdar. Looking ahead, the potential to rebid for the relocation of one of the smaller casinos in the Western Cape to the Cape Metropole remains an opportunity for the group, although the recent increase in provincial taxes in the Western Cape has made this a less attractive opportunity than before, it stated. The Mpumulanga Gaming Board has re-initiated the request for proposals for the fourth licence in the province following the withdrawal of an earlier bidding process, although the group has not decided whether it will re-bid at this stage. The group continues to explore a variety of projects, including the expansion of the Suncoast casino, as well as a number of potential acquisitions that are at various stages.

DEVELOPMENTS

Israeli officials mull ‘casino in the desert’ ISRAEL

olitics leaders from Israel met up with Nevada Governor Brian Sandoval recently, as they look to introduce gambling to the country. According to David Siegel (pictured), the Jewish nation’s Consul General, politicians in Israel are reviewing the possible benefits of land-based gaming. Sandoval’s visited Israel with 50 business leaders in October, with the goal of diversifying Nevada’s economy. Focuses of the trade mission included hightech industries, the drone air-

craft market and water conservation. Talking with Israeli leaders, Sandoval introduced gaming to the discussion. Among the men Sandoval spoke with were President Shimon Peres and Prime

Minister Benjamin Netanyahu. Siegel said the talks were only in the beginning stages. According to reports, a town in the heart of the Negev Desert is currently being eyed as the potential home for casino development. “I think it’s an area of interest,” Siegel said. “It’s not in the tangible phase yet, but it’s something that we’re looking at.” Siegel said Israel could use Nevada’s knowledge of how to “build cities in the desert” as the Negev accounts for 60 per cent of Israel’s land mass but holds only eight per cent of the country’s population.

December 2013 casinoreview

| 17

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CR134-p20-22-NAmerica_Coinslot NEW 12/17/13 1:55 PM Page 1

News

North America ONLINE GAMBLING

Online gambling goes live in NJ - but will it save AC? The first week of live internet gambling went pretty smoothly but how much impact, either positive or negative, it will have on Atlantic City is yet to be seen. If it is to stem the decline of the resort, it has a lot of work to do, as Hugh Sorrill reports. Borgata is one of the seven resorts in Atlantic City up and running with an online presence

UNITED STATES

ew Jersey became the third and largest US state to launch legal, regulated full online gambling on November 25. In the first week, which was devoted mainly to testing, more than 37,000 people had signed up to play the full range of casino games from their internet devices. Governor Chris Christie, who has pushed the measure forward, said: “That’s pretty good in a week. I’m not worried.” Six of the 12 Atlantic City casinos and their software partners have fired up their sites: Borgata, Trump Taj Mahal, Trump Plaza, Tropicana, Bally’s Atlantic City and Caesars Atlantic City. The Golden Nugget was expected to join them in early December. Only two venues have no online

20 | casinoreview December 2013

licence - Atlantic Club, which is in bankruptcy proceedings, and Revel, which came out of bankruptcy earlier this year and is still looking at “strategic options” including a possible sale. The first figures will be made public in January, however, the state expects a minimum of $250m (E184m) in annual gross gaming revenues and possibly even $500m (E368m) in the first year. New Jersey with 8.8m inhabitants is more than three times larger than Nevada and almost ten times larger than Delaware, the other two states permitting online gambling. Only people within the state boundaries are legally allowed to gamble: the geolocation technology was adjusted in the first week to allow greater

accuracy for players at the borders, to within just a few metres. At least eight other states are looking at similar legislation including Pennsylvania. As the law currently stands, however, the 1961 Wire Act forbids gambling across state borders, so theoretically neighbouring states permitting online gambling should pose no threat. Nevertheless, the expected revenues are still a long way behind those generated on the live gaming floors: AC brought in gaming revenues of just over $3bn in 2012, down eight per cent on 2011 and is expected to fall by about the same amount in 2013. Gov Christie believes online gaming revenues could be as high as $1bn (E737m) by

next July, but many analysts believe his projections to be wildly optimistic. Hope and wishful thinking are one thing but there is a real new market to be opened in the state. Joe Lupo, SVP of operations at Borgata, said: “Online gaming will enable us to reach many new customers who may or may not have considered visiting Atlantic City in the past.” Extending rewards programmes to online players will help bring people to experience the live gaming floor and that new customers will come to enjoy more of what is on offer. Tom Pohlman, general manager of the Golden Nugget, said: “Customers will continue to come to Atlantic City for the added social benefits of live gam-

ing, restaurants, spas and entertainment. Online gaming will only provide a gaming experience; it will offer gambling to people who aren’t able to get away during the week to gamble, or those who might like to trace to Atlantic City on weekends.”

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YXYXYXY COLORADO / LOUISIANA / NEVADA / NEW JERSEY / PENNSYLVANIA Atlantic City: What does the future hold?

GOLDEN NUGGET: “CUSTOMERS WILL CONTINUE TO COME TO ATLANTIC CITY FOR THE ADDED SOCIAL BENEFITS OF LIVE GAMING, RESTAURANTS, SPAS, AND ENTERTAINMENT.”

REVENUES

Atlantic City: Declining hopes of survival? aming revenues at the 12 Atlantic City casinos in the nine months to the end of September were $2.19bn (E1.61bn) down 9.5 per cent on the same period in 2012, the New Jersey Division of Gaming Enforcement has announced. Total revenues including rooms, F&B, entertainment and third party business sales were down 7.2 per cent to $3.37bn (E2.48bn). In the third quarter, total revenues were down 6.4 per cent to $1.2bn (E884.6m). Revel showed the most growth in total revenues in the nine-month period up 25.4 per cent, however its prior comparison period was considerably shorter as it opened only in April 2012. Atlantic Club is the only other venue to have seen growth in the period, up 9.6 per cent allowing it to shorten its operating losses considerably. Borgata, by some distance the biggest earner of the 12, was essentially flat. Trump Plaza at the bottom of the pile in terms of revenues also saw the greatest fall in total revenues, falling 27.8 in the nine months, to just $85.5m (E63m).

ANALYSIS t’s hard to be positive about the future of Atlantic City, but legalising online gambling and tying the licences to the land-based casinos is good news. It helps to ensure compliance but the potential for cross-marketing to a much wider demographic of essentially local players could also help to boost the fortunes of the land-based industry. Despite that statement of the obvious, Atlantic City Alliance, the body tasked with marketing the resort to the wider world, does not appear to have made any special effort to capitalise on the possibilities: that would be a mistake. Operators themselves will make use of their own marketing and rewards programmes or online satellite tournaments in poker or slots to migrate players across but they could do with the support.

New Jersey Governor Chris Christie happy with the start of online gambling

US ROUNDUP Nevada judge has further delayed the demolition of the Harmon Tower in Las Vegas (pictured) to allow the company behind its insurance policy to provide an update on its investigation of CityCenter’s $394m (E286m) claim that the hotel is a total loss. The Harmon was once slated to be the 48-storey centrepiece of the $8.5bn (E6.2bn) CityCenter complex, which opened in December 2009. However, developers topped off the tower at 26 storeys after inspectors discovered flaws in the steel reinforcements running through its concrete structure. Clark County District Court Judge Elizabeth Gonzalez has now delayed approving a demolition plan to give insurance group FM Global a chance to send her a letter with the update. If she does not receive a letter, Gonzalez said, she would determine if CityCenter owners MGM Resorts International and Dubai World can proceed with dismantling the Harmon floor by floor. According to a report from Bloomberg news agency, meanwhile, Las Vegas Sands Corporation (LVS), the casino group controlled by Sheldon

REVENUES

Nevada gaming revenues down but trends still positive UNITED STATES

evada gaming revenues were down 2.6 per cent in October, when compared to the previous year. The Nevada Gaming Control Board reported that the state’s non-restricted gaming licensees reported a total “gaming win” of $954.3m (E693.8m) for the month of October 2013. This amounts to a 2.58 per cent decrease compared to October 2012, when licensees reported a gaming win of $979.6m (E712.2). For the fiscal year July 1, 2013 through October 31, 2013, gaming win has increased 1.52 per cent. The monthly decline came despite double-digit increases in winnings from baccarat and sportsbook wagers, said Mike Lawton, senior analyst with the control board. Casinos only won $16.1m (E11.7m) on roulette in October, down 68.3 per cent from last October’s record monthly win. Nevada sportsbooks won $30.3m (E22.0m), an increase of $23.6m (E17.2m) over October 2012. Gamblers wagered $342.7m (E249.2m) on football alone, the highest amount ever, Lawton said. Baccarat, a high-roller game favoUred by Asian players, also had a good month. Casinos won $151.2m (E110m) on baccarat action, up $21.7m (E15.8) The report showed that the state in November collected $60.9m in casino taxes, up 11.8 per cent, based on the October revenues.

Adelson, is seeking $3.25bn (E2.4bn) of loans to pay off an existing credit pact. Citing a source close to the situation, Bloomberg said the financing would purportedly consist of a $2.5bn term loan (E1.8bn) and a $750m (E544m) revolving credit line. The borrowing subsidiary, Las Vegas Sands LLC, has about $3.2bn (E2.3bn) of first-lien loans, a portion of which matures as soon as May 2014, according to data compiled by Bloomberg. Across the border, Century Casinos hosted a groundbreaking ceremony for the Century Downs Racetrack and Casino project and provided an update on its plans for the development in Calgary, Canada. The Colorado-based operator said it has completed due diligence on the project, which will be the only horse racetrack in the Calgary area, featuring 550 gaming machines and an off-track betting area. Litigation that was brought by a third party against United Horsemen of Alberta (UHA) has been settled, allowing the project to move forward. The updated budget for the construction and opening of the racetrack and racing entertainment centre and racetrack is estimated at C$24m (E16.7m). December 2013 casinoreview

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News

North America

G2E 2013

G2E 2013: NEARLY 16,250 ATTENDEES FILLED THE HALLS OF THE SANDS EXPO CENTER IN LAS VEGAS IN SEPTEMBER FOR A G2E EVENT WHICH SAW A 3PC INCREASE IN VISITOR LEVELS.

ACQUISITION CRUISE SHIPS

Tilman Fertitta completes Louisiana casino purchase UNITED STATES

he final piece of Golden Nugget’s Texas casino project has fallen into place as company owner Tilman Fertitta confirmed that his purchase of the Lake Charles Golden Nugget Casino Resort and Hotel had been completed. The resort, currently under construction on the shores of Lake Charles, Louisiana has a complex history and began construction as the brainchild of a separate company. The property borders the existing L'Auberge Casino Resort, owned and operated by Ameristar Casinos, who originally commissioned what has now become the newest

T Century Casinos to operate three additional cruise ship casinos UNITED STATES

entury Casinos, the Colorado-based gaming operator, has announced that its whollyowned subsidiary Century Resorts International will operate three additional casinos on cruise ships under its exclusive casino concession agreement with Windstar Cruises. Century already operates the casinos onboard Windstar Cruises’ existing fleet of award-winning luxury sailing yachts carrying from 148 to 310 guests and

known for their intimate experience and unique voyages to some of the world’s best small ports and hidden harbours. In April 2014, Windstar will launch the first of three newly acquired all suite cruise vessels, the 212-passenger ‘Star Pride’, with the casino operated by Century Casinos. The other two vessels are planned to start operation in the second quarter of 2015. Last month Century Casinos reported a 54 per cent increase in third-quarter operating revenues to $28.8m (E21.3m). Net earn-

ings for the three months to September 30 were $1.1m (E812,000), down 10 per cent on the prior-year period. “We posted solid results in the third quarter, even though both our Colorado operations and our casino in Calgary were significantly impacted by severe floods in their feeder markets,” said the company. In other news, the company’s 66 per cent-owned subsidiary Casinos Poland, successfully launched a second casino in Warsaw on November 8. Century Casinos is currently operating

nine casinos under the Casinos Poland brand in most major cities across the eastern European country. The group relocated its second casino licence in Poland’s capital Warsaw, from an unfavourable location to the Marriott building in order to improve its offer in Poland’s main gaming market. The entrance to the new venue is next to Warsaw’s principal train station and a popular shopping mall, providing for substantial pedestrian traffic directly in front of the new casino location.

Golden Nugget. In mid2013 Ameristar were purchased by Pinnacle Entertainment. However, according to FTC regulations, they were forbidden from owning a second property in the area and went looking for a buyer. Fertitta stepped in, not just because L’Auberge had proved that the south Lousisian region possessed untapped potential, but also because Tilman himself grew up just a few miles from the site in Galveston, Texas. The 242-acre site will finish its transformation in late 2014 and is slated to offer over 60 table games and 1,600 slot machines. The resort will also play host to a variety of chain restaurants from Fertitta’s culinary empire.

LEGISLATION

Penn State approve bar and pub gambling UNITED STATES

he government of the State of Pennsylvania has passed an amendment to their 1988 gambling act to allow pubs and bars to operate small games of chance. From early 2014, taverns will have the option to offer their customers raffles,

pull-tab, and daily-draw games. The bill was signed into law by Gov. Tom Corbett after a narrow vote passed through the house, with a result of 102 in favour and 96 against, before the Senate provided a more one-sided 3415 result. The bill was sponsored by Representative John Payne, a Republican for the town of Hershey, Pennsylvania.

22 | casinoreview December 2013

Any bars that wish to offer games of chance must obtain a licence from the Pennsylvania Liquor Control Board, who are obliged to give a response within sixth months. This means that locals are likely to see the start of pub gaming in early Spring, 2014. Games of this type are currently available in Pennsylvania’s private members clubs.

Before the vote took place, representatives from the state’s veteran’s clubs protested against the legislation, arguing that it would irrevocably thin their membership. Bars meanwhile, welcomed the move, despite the requirement that they pay 60% of net gaming proceeds to the state as tax.

info@intelligentgaming.net www.intelligentgaming.net

CR134-p24-25-SAmerica_Coinslot NEW 12/16/13 4:40 PM Page 1

News

South America

REGULATION

Paraguay attempts more reforms to attract investment The good intentions of landlocked Paraguay to reform its gambling laws and allow new casino to be licensed and operate transparently have singularly failed to develop over the course of many years. A new regulator is now attacking the issue on several fronts, reports Hugh Sorrill.

PARAGUAY

Javier Balbuena, new head of Paraguay’s regulator Conajzar

ANALYSIS araguay passed a gambling act in 1997 that allowed for 11 casinos to be licensed in the country, however, successive attempts to complete the tender process have been stalled by allegations of corruption among officials, bid terms changing half-way, death threats against a previous regulator and splits within the government. Reform of gambling was also a fairly low priority during the administration of the President Fernando Lugo, the left-leaning Roman Catholic bishop who was elected in 2008, and it was even further down the list of priorities when Lugo was successfully impeached and removed from office in 2012. A new presidential election took place earlier this year with Horatio Cartes representing the rightwing Colorado Party assuming office in August. The businessman-turnedpolitician promised reform across government has appointed a number of technocrats to help him achieve it. Implementation of gambling reform is creeping up the agenda.

araguay is making renewed efforts to reform its gaming industry in o r d e r explicitly to attract inward investment into the sector. The country’s gambling regulator Conajzar and its new head Javier Balbuena went to the SAGSE Buenos Aires in mid November to tell potential operators it should now be taken seriously. Balbuena has already announced that the agency is working technology to link all gaming machines in the country to a central computer; other South American countries such as Peru have largely successfully implemented similar measures. This reform will fundamentally change the way Conajzar operates. Bal-

24 | casinoreview December 2013

buena said: “We are still today working under an obsolete system of control and have to make physical checks. In the future however, online controls will require us to employ IT experts so that evaluations can take place online.” Under a law passed in 1997, the government planned to license up to 11 new casinos in Paraguay however, some of those new licences never materialised, due in part to alleged corruption within Conajzar. In 2009 a new attempt by the then regulator Patricia Marchewka was made but fell through due to political wrangling and some unpleasant vested interests putting personal pressure on her, forcing her to resign in 2011. Conajzar’s new boss ordered a review of the situation when he assumed office in September and will have the report back by the end of December. The study

will recommend how many new casino licences should now be offered. Balbuena has said he will work under the premise that every casino is a business that needs to be profitable for the state, the workers and the owners and will therefore grant licences in a planned and orderly fashion. He does not want to affect existing licences. “That’s why we don’t want to have too many licences and why we’re undertaking a detailed study about the state of the market and where we want to install casinos.” The terms of the new licences will be different from those offered in the past he added in order to protect the interests of the state. Central control will allow the easier implementation of percentage rate tax rather than a flat fee per machine or gaming table.” The law already provides for a percentage levy to be

charged, so will require no new legislation. Balbuena is also hoping that a new drive against illegal gaming will help encourage legal investors. In November, Conajzar raided dozens of bars, snack bar and hotels in the Central and Gran Asunción departments offering street gaming with no controls. “These machines were never authorised to operate like this. There were some technical flaws in a decision issued in 2011 on the subject, which categorised slots as “new games” and not gambling machines. After that decision was issued, Conajzar signed an agreement with the Faculty of Engineering at the National University of Asunción to test these machines, and its view now contradicts that original decision.” The illegal market is believed to be much larger than the legal market.

CR134-p24-25-SAmerica_Coinslot NEW 12/16/13 4:45 PM Page 2

YXYXYXY ARUBA / BRAZIL / PANAMA / PARAGUAY Paraguay: Aiming for investment

JAVIER BALBUENA: “WE ARE STILL TODAY WORKING UNDER AN OBSOLETE SYSTEM OF CONTROL AND HAVE TO MAKE PHYSICAL CHECKS.” DEVELOPMENTS

OPENING Trump Ocean Club is Panama’s tallest building

Ritz-Carlton opens its doors in Aruba ARUBA

Sun International to operate casino at Panama City hotel PANAMA

ewland International Properties Corporation, the developer of Trump Ocean Club International Hotel and Tower in Panama City, Panama, has announced the closing of a $45.5m deal with Sun International that will bring the world-renowned casino operator to Panama’s most prized hotel. This partnership, according to Newland, will introduce “superior entertainment and an ultimate guest experience that is

unparalleled in Latin America”. The new addition to Panama’s tallest building, which opened in July 2011, is scheduled to commence construction in December and is expected to open in the second half of 2014. Encompassing 75,000sq.ft, the casino will occupy the second level of the 369-room hotel. It will include 32 gaming tables for blackjack, poker, roulette and baccarat, along with a collection of 600 slot machines, a finedining restaurant, bar and lounge. On the 66th level of the

hotel, South Africa-based Sun International will also operate The Panaviera, an exclusive gambling space reserved for VIP guests. Here, clientele will also find an elite restaurant and lounge, with private suites available on the floor below. Sun International said it plans to invest a further amount of $60m to buildout and fully develop the multiple spaces. Headquartered in Johannesburg, the company currently operates 27 resorts, luxury hotels and casinos across eight countries. Within

Latin America, its own and operate the Monticello casino in Chile. Commenting on the deal, Graeme Stephens, chief executive of Sun International, said: “Latin America has become an area of focus for Sun International as we are applying for a casino licence in Cartagena, Colombia, and we are also looking to enter other countries in the region. We consider Panama to be a very important and strategic market for us and are delighted to be aligning ourselves with Newland and their award winning hotel.”

EMERGING MARKETS

Brazil begins to talk about gambling BRAZIL

state-owned bank in Brazil hosted a conference in November to discuss the future of gambling in Brazil, with the FIFA World Cup taking place in the country next year fol-

lowed by the Olympics and Paralympics in 2016. Although at arms length from the government, the discussion may be a first step in opening what would be the biggest market in Latin America. Legal gambling in Brazil is limited to lotteries, gov-

ernment-run agencies for sports and race betting, and cracks in the law that allow online gambling (which has not yet been prohibited as such) and some bingo halls and gaming machines, by virtue of a failed attempt to ban them outright nine years ago.

The conference heard from operators across betting and gaming sectors as well as from regulators. Last year around 11.1bn reals (E3.5bn) was spent in legal gambling in Brazil, with an estimated 18.9bn reals (E6bn) spent on illegal gambling.

he Ritz-Carlton Hotel Company has cut the ribbon on its latest resort on the Caribbean island of Aruba. The luxury beachside Ritz-Carlton Aruba is the sixth resort in the company’s growing portfolio across the Caribbean and Mexico region. Situated on the island’s pristine Palm Beach, the eagerly anticipated oceanfront hotel officially welcomed its first guests on November 22. The 320-room resort includes four dining outlets, a spa, two swimming pools and a 24-hour, 15,000sq.ft casino with a range of table games and 300 slot machines. “We are thrilled to bring The Ritz-Carlton brand to Aruba, a unique island paradise in the Caribbean known for its beautiful sunkissed beaches, arid landscape and diverse cultural heritage which can be found no place else,” said Herve Humler, president and chief operating officer for the Ritz-Carlton Hotel Company. “Our RitzCarlton customers have long awaited this luxury property and we are confident the Ritz-Carlton Aruba will help to put this destination on the map for luxury travellers and further enhance the memorable travel experiences available for guests from around the world. The Ritz-Carlton Hotel Company, a wholly-owned subsidiary of global hospitality group Marriott International, currently operates 84 hotels in the Americas, Europe, Asia, the Middle East, Africa and the Caribbean. December 2013 casinoreview

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ExCeL, London 4 - 6 Feb 2014

“the world’s biggest and best event for the international gaming industry” Jens Halle, MD, Austrian Gaming Industries

Sensational ICE is a mouthwatering prospect

isitors to ICE 2014 will have the mouth-watering prospect of seeing the entire world of gaming covering betting, bingo, casino, lottery, online, street and social gaming in what is the world’s biggest gaming space comprising some 55,000 sqm. ICE is the only business-to-business event to bring together both the online and offline gaming worlds under one roof and the only exhibition to provide a truly

global perspective on gaming trends with 65% of exhibitors drawn from outside the UK. Alongside gaming’s mega brands ICE will also feature a total of 74 companies which will be making their first appearance at ICE. It’s credentials like this which prompted Jens Halle, Managing Director of Austrian Gaming Industries to describe ICE as the ‘world’s biggest and best event for the international gaming industry’.

CE visitors are being encouraged to pre-plan their meetings with exhibitors to ensure that they don’t miss out on the huge commercial opportunities which are available at the London event. The advice comes as research conducted by Vivid Interface amongst exhibiting companies at the 2013 show, confirms that ICE London is the international gaming industry’s commercial capital. The Vivid Interface research showed that exhibitors held on average 52 business meetings at ICE, a figure, which when applied across all 2013 exhibitors, totals some 25,012 commercial gatherings. Vivid’s Geoffrey Dixon said: “ ICE is the meeting place of choice for the international gaming community and the challenge for visitors is to ensure that they are able to meet with the exhibitors they want to do business with and clearly the

It’s all about business at gaming’s international commercial centre

best way to achieve that is to arrange meetings in advance of

the exhibition opening rather than simply leaving it to chance on

arrival. ICE is simply too popular an event to risk missing out.”

Be part of the most influential business community i

“..without doubt, ICE Conferences is the most worthwhile learning and networking programme in gaming” Ron Goudsmit, Chairman, European Casino Association

Totally Gaming

2014 event is on course to set new records

CE Sensational, is the theme of the marketing campaign which organisers are hoping will secure the 4th consecutive year of growth at what is the world’s biggest gaming expo. The experiential campaign, will appear throughout international gaming media, as well as in an extensive print and digital direct marketing campaign and innovative social media promotions. Kate Chambers, Portfolio Director responsible for ICE Totally Gaming said: “The 2013 campaign succeeded in helping to attract a total of 22,247 unique attendees, a 4.3% increase on 2012, 8.6% up on 2011

and a massive 17.8% uplift on 2010. The number of visitor days - the average amount of time visitors spent at the event - increased from 1.51 days (2012) to 1.81 (2013) taking the total number of visitor days spent at February’s event to 40,267. The commitment we are making to our stakeholders is to invest in the ICE brand with a far reaching and truly ‘sensational’ multi-media campaign which connects with the 100+ nationalities who we welcome to London each year.”

Growth in attendance 2010 - 2013

Why ICE Conferences is the best learning programme in gaming

2014

ttending ICE Totally Gaming, the world’s biggest gaming event, isn’t just an opportunity to see the totality of the international gaming experience all under one roof: it’s also a once a year chance to engage, network and learn from over 150 of gaming’s most eminent thought leaders courtesy of the ICE Conferences programme. Comprising eight dedicated streams put together by the ICE team of gaming experts, the programme covers gaming’s hottest topics and biggest growth areas, delivering a unique opportunity to benefit from over 40 hours of targeted learning and networking. Featuring gaming’s most respected influencers including Mitch Garber, Harrie Temmink, Philip Graf and Luca Frigerio – to name but a few – ICE Conferences really is ‘like other conferences ...but in colour’. Monday 3rd February: The 6th International Casino Conference. Tuesday 4th February: World Regulatory Briefing, CRM, Loyalty & Retention, Mobile Gaming: Wednesday 5th February : Cybercrime, Security and Regulatory Compliance in Gaming, Monetising Social Gaming, Game Design & Development, Next Generation Lotteries.

For more information and to book your place visit icetotallygaming.com/conferences

y in gaming - register for ICE at icetotallygaming.com

CR134-p28-29-Comment_Coinslot NEW 12/17/13 5:10 PM Page 1

Comment & Analysis MEGA-RESORTS

When Michael Leven, president and chief operating officer of Las Vegas Sands Corporation, described in more detail the group’s plans to finance and develop a new mega-resort 13km south-west of Madrid earlier this year, some industry observers were adamant that the plan would never go ahead. Regrettably for Spain, that’s just how it turned out.

‘Eurovegas’ development plans up in smoke

peaking at an afternoon conference session ahead of the ICE show in London earlier this year, Michael Leven gave his reasons as to why LVS had chosen the Spanish capital over Barcelona for its mega-resort plan. And while the project continued to attract its naysayers, most of the delegates’ attention remained fixed on Leven’s presentation, clearly fascinated by the prospect of a so-called ‘Eurovegas’. On paper, the project’s mere ambition was staggering: LVS would create a fully integrated mixed-use destination, featuring 12 hotels with 36,000, six casinos, golf

courses, shopping malls, a convention centre, bars and restaurants. The initial investment was estimated at around E6bn, going up to E17bn by the completion date). Directly and indirectly the project was supposed to create up to 250,000 jobs. This last figure was a key selling point for those behind the Eurovegas project. Although, according to the latest data from the European Commission, the unemployment rate in Spain is set to drop from the current 26 per cent, this figure will still hover around the 25 per cent mark by 2014. And while GDP is expected to grow by 1.5 per cent in 2015 (it shrunk by 1.3 per cent in 2013) gross public debt is expected to rise to 104.3 per cent of GDP in the same year. Despite the obvious advantages LVS’

project presented to both Madrileños and the wider Spanish economy, talks collapsed at the eleventh hour earlier this month. It quickly emerged that government representatives were not willing to accept some of the casino developer’s conditions, which included lower gambling taxes and guarantees of financial compensation in the event of future legislative changes under different governments. The project attracted a degree of controversy from the beginning, with some critics pointing out that any tax breaks essentially meant that the resort would not be contributing that much to regional wealth. One further major criticism levied against the Popular Party (PP) government was that it was willing to let a foreign billionaire

MEDIAWATCH

Reports from around the world focus on the changing state of European gaming and the challenges posed by Latin America.

n Europe, suggests Intergame, “there are signs that while some of its neighbours are stalling, Spain is in fact beginning to pull its troubled finances around,” amid reports of returning consumer confidence. Meanwhile, Chris Wosu reports on Serbia’s move into iGaming, noting that “the decision may have been hurried by a reported daily loss of 400,000 to the grey market.” Also at Intergame, Simon Liddle suggests that the impending sale of the state owned Holland Casino could have a knock on effect for the rest of the Dutch gaming industry. “In an economic climate that is still squeezing discretionary spending, with high levels of taxation and a smoking ban, any additional pressure is unlikely to be welcomed.” He also dis-

28 | casinoreview December 2013

cusses the impeding creation of a regulated online casino market in the country, where land based operators are unhappy at the 20 per cent tax rate imposed on internet gaming - 9 percent less than they are required to pay. Still in European, Casino International has taken a look at the impending changes to Ireland’s gaming laws, which are designed to replace regulations that Dr Max Barrett describes as being, “rooted in the dated notion of gambling as a vice.” In Asia, Yogonet discussed the first ever gaming show for Macao with Jay Chun, chairman of Macau Gaming Equipment Manufacturers Association. Asked how his team were preparing for the 2014 edition, Chun singled out, “improving traffic, quality of buyers, service quality, and ROI for exhibitors,” as key areas to focus on during the next eleven months. Drew Pawlak, BMM senior video president of business development in the Americas, also discussed his company’s performance at SAGSE Buenos Aires. Addressing the prospect of developing business in South America, Pawlak told Yogonet that he thinks of the area as “the last regulated market” and that,“Argentina specifically, with its importation laws, is very challenging.” Casino Enterprise Management have been examining the proliferation of player clubs in Las Vegas and the poten-

tial they create for breaches of data protection. The desire of players to earn rewards as they play has proved a great boon for casinos, but “as the use and sophistication of these player clubs have grown, so has the Nevada Gaming Control Board’s interest in the storage of patron information. The board has investigated numerous incidents in which such databases have been compromised and the potential for identity information theft existed.” In Casino International, director of Games Investor Consulting Nick Gibson has been discussing the future of Facebook as a gaming platform. “It seems remarkable to think that less than two years ago, Facebook gaming was being heralded as the future of gaming,” he says. Gibson is, however, more buoyant than most on site’s prospects, noting that, “Facebook’s enduring popularity is a reflection of the huge diversity of players that our industry is now capable of attracting.” Finally, Intergame features a blog post from Betting Promotion CMO Richard Hogg about setting up the BiG Foundation, a charity which aims to improve and enhance quality of life for the terminally ill. He discusses a “karaoke sing-off with Ray Winstone” and the dizzying array of ways to spend money in the gaming industry, before the announcement of his first charity dinner in April 2014.

CR134-p28-29-Comment_Coinslot NEW 12/17/13 5:12 PM Page 2

YXYXYXY EUROVEGAS / JAPAN COMMENT: JW@SJC.CO.UK

SHELDON ADELSON: “WHILE MANY HAVE WORKED DILIGENTLY, WE DO NOT SEE A PATH IN WHICH THE CRITERIA NEEDED TO MOVE FORWARD WITH THIS LARGE-SCALE DEVELOPMENT CAN BE REACHED.” JAPAN

Japan casinos: shifting attention away from the city?

bypass the country’s non-smoking laws, affecting workers’ health and undoing the country’s efforts to reduce the number of smoking-related illnesses. Ultimately, while some may say the project was doomed from the start, many within the European casino industry Spanish or other - will lament the announcement that LVS will no longer be pursuing its dreams of opening up a European Las Vegas. As the company itself shifts its focus to countries such as Japan and South Korea, the glittering PowerPoint slides that accompanied Leven’s presentation are set to be consigned to memory, leaving nothing but a poignant reminder that the Asian Tiger continues to show no signs of abating.

Michael Leven outlining detailed plans of the ‘Eurovegas’ project at the ICE Conferences earlier this year

much-anticipated draft of a bill legalising casinos was approved by a panel of lawmakers from Japan’s ruling Liberal Democratic Party (LDP) earlier this month, in a step toward allowing gambling resorts to be built in Japan. It is widely thought that Tokyo’s selection to host the 2020 Olympics has boosted confidence that the government will legalise casinos in what could be the world’s second-largest market after the Chinese city. Galaxy Entertainment Group (GEG) and a range of competitors including Las Vegas Sands, Wynn Resorts, MGM Resorts and Melco Crown Entertainment have pledged investments, as they look to replicate Macau’s success in capturing both Asian and foreign gaming spend. It is interesting to note that while the sprawling cities of Tokyo and Osaka have garnered much of the attention for future casino development, off-radar towns are also hoping to set up

info@signs4u.nl

casinos to draw tourists, generate tax revenues and reverse demographic decline. Kanekiyo Morita, a hotel executive in Atami, a hot springs town in Japan, told Reuters news agency: “Hot springs, Japanese cuisine, Mt. Fuji and geisha - these traditional Japanese things alone are not enough. “Japan’s population is rapidly declining and, for tourist towns, getting foreigners to visit is extremely important.” Lawmakers in Japan have proposed two types of casino licenses: one for large integrated resorts and another for more compact gambling resorts in the countryside. While it has been recommended that Japan limit the number of licenses and prioritise locations promising the biggest economic benefits consultant Keiichi Kimura stressed the importance of looking outside the country’s metropolises. “I don't mean to negate Tokyo and Osaka,” he said, “but it’s just not right to be focusing the debate on those two places only.”

www.@signs4u.nl December 2013 casinoreview

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Politics

& Legislation

The Remote Gambling Association has welcomed the European Commission’s recent announcement that it has opened a series of infringement proceedings against various EU Member States whose gambling laws are purportedly in breach of internal market regulations.

EUROPEAN UNION

European Commission takes action against Member States who block the door to gambling he European Commission has formally opened a series of infringement proceedings against a number of EU Member States whose laws on gambling appear to be in breach of the rules of the internal market. In doing so, the Commission has sent what it calls a “reasoned opinion” to Sweden which had been under scrutiny for several years, and has asked Belgium, Cyprus, the Czech Republic, Lithuania, Poland and Romania for further information on their national legislation, which currently restricts the supply of gambling services. The Commission’s announcement follows the publication of its Action Plan on online gambling in October 2012, which asserted that it would be taking steps to ensure that Member States complied fully with EU law. The announcement by the Commission also reflects the

wishes of the European Parliament as expressed in successive resolutions on online gambling drafted by MEPs Jürgen Creutzmann and Ashley Fox, in 2012 and 2013 respectively, which firmly called for EU action on compliance. Commenting on the Commission’s announcement, the Remote Gambling Association (RGA) said: “There at last appears to be a consensus at EU level on the need to address unlawful restrictions after many years of inaction.” In October 2012, the Commission initiated a dialogue with Member States and requested that national restrictions to the provision of online gambling be justified as provided for in the case law of the European Court of Justice. Although numerous Member States were initially part of the Commission’s

investigation, it has decided to proceed with action against only a small number of Member States. “The absence of Germany and Greece is particularly regrettable as both are key gambling markets whose current laws do not appear to be fully compatible with EU law,” the RGA said. “It must also be noted that formal proceedings can be lengthy and unless Member States decide on their own initiative to adopt legislation complying with the Commission’s instructions, it may still be many years before a judgment of the Court compels them to change. “The RGA fully appreciates, however, that the Commission’s announcement will put further pressure on reluctant Member States and that is to be welcomed. It is to be hoped that this will accelerate the trend within the EU towards

the establishment of new licensing regimes. These have demonstrated that an open, regulated market can provide an EU-compliant solution.” Clive Hawkswood, CEO of the RGA, stated that the announcement was “a step in the right direction for an online gambling industry that has suffered for too long from legal uncertainty and unjustified market closures”. He added: “Although we are fully aware that, under certain conditions, market restrictions can be deemed lawful and justified, we are entitled to the free provision of services and due regard must be given to those rights.” “We once again look to the Commission, as guardian of the Treaties, to enforce those provisions and we expect that those countries subject to a proceeding will introduce the required changes as soon as possible.”

TRADE ASSOCIATION

AGEM adds six new members 30 | casinoreview December 2013

he Association of Equipment Manufacturers (AGEM) has announced that addition of six new companies. Firms from nineteen different countries are now members of the long standing trade group, although each of the

new arrivals are based in the United States. The

announcement brings the number of businesses on AGEM’s books to 130. Also joining up are the Gasser Chair Company law firm Jones Walker, Sightline Payments, Vanity Gaming Solutions, software provider Atri nt andEliers Research .

CR134-p30-Politics_Coinslot NEW 12/16/13 4:29 PM Page 2

AGEM / EUROPEAN COMMISSION / MEXICO Clive Hawkswood, RGA

EUROPEAN COMMISSION ACTION: “WE ARE ENTITLED TO THE FREE PROVISION OF SERVICES AND DUE REGARD MUST BE GIVEN TO THOSE RIGHTS.”

LEGISLATION

Mexico moves towards legislative solution MEXICO

BRIEFS

here has been a new development in Mexican legislation following the recent announcement by the Mexican Ministry of the Interior (SEGOB) that there are a total of 43 casinos now operating illegally in the country. The initiative has come from a member of the select committee, which has been investigating the industry for several months, and a new law is currently being looked at by law

makers. Headed by Ricardo Mejía Berdeja, the committee has been responsible for looking at how licences have been granted under the previous administration and to make recommendations as to how Mexico’s gaming laws could be changed to more fully regulate the sector. Speaking recently during the first public consultation on the issue, members of the committee said that the way forward was to allow Mexico’s gaming industry to grow while

regulating and taxing the gaming sector more efficiently. Federal deputies José Arturo Salinas Garza, Aurora de la Luz Aguilar Rodríguez, Héctor Gutiérrez de la Garza and Ricardo Mejía Berdeja, argued that Mexico’s antiquated gaming laws of 1947 need to be replaced with a new law so that the country may benefit more fully from gaming tax revenue in the future. It is thought that the new gaming law could be debated in the Mexican Congress in February.

AUSTRALIA Labor supports moves to water down poker machine reforms

abor will take a different approach to various aspects of the Abbott government’s social services and other legislation amendment bill, which includes changes to gambling laws. Abbott’s social services minister, Kevin Andrews, said he was removing measures that overlapped with state and territory regulatory powers and described the changes as the “first step in reducing bureaucracy and the duplication of functions between the Australian government and the state and territory governments”. Church groups and crossbench parliamentarians had accused Australia’s major parties of lacking moral leadership and turning their backs on poker machine reforms because of industry pressure.

UK Jurisdictions sign online gaming memorandum of understanding

nline gaming jurisdictions Alderney and Malta have signed an agreement that will

ILLEGAL OPERATIONS

Illegal ops drive mood for change here are a total of 43 casinos in Mexico operating illegally according to the Mexican Ministry of the Interior (SEGOB). The agency made the announcement while delivering its report to the Special Commission of Gaming of the Chamber of Deputies, explaining that just seven casinos have been closed this year. SEGOB also reported that the Mexican judiciary has this year denied a total of 12 requests for stays of closure presented before local courts by operators. The casinos found to be operating without a valid licence are located in the states of Jalisco, Chihuahua, Baja California, Colima, Morelos, Sinaloa and Nayarit.

create new standards in the setting up of business friendly environments after being in discussion for some time. “The role of the offshore jurisdictions is evolving very quickly because of the rise in point of consumption taxation and regulation, new technologies such as cloud computing and the need for strong regulatory oversight,” said Robin Le Prevost, Alderney's director of eCommerce development. “Alderney’s position has been: the better the co-operation between jurisdictions, the better the standard of regulation can be. It also provides considerable benefits for operators, which is increasingly important as the cost of multiple licenses and compliance rise inexorably.”

US Legal independence of Native American communities at stake

he legal independence of Native American communities could face risks as the supreme court weighs up a case brought against Michigan casino operators. Tribal lands are deemed to have sovereign immunity from certain state laws, but states are increasingly licensing their own competing casinos and the clash over jurisdiction has

According to SEGOB’s report, casinos operating without documents, in most cases, had been able to remain open due to the granting of stays of closure. The committee had already heard that the large number of casinos, which have been able to remain open, points to collusion when it comes to local judges and the gaming industry. SEGOB has agreed to work closely with the special investigative committee, and Interior Minister Miguel Angel Osorio Chong has agreed to assist law makers in order to investigate those casinos operating illegally in the country and help develop a new gaming act.

put Michigan against the Bay Mills Indian Community, which used money from a land settlement to buy the gaming property outside its traditional reservation. Michigan says the tribe opened the casino in violation of a state agreement and without the permission of the federal government, while tribal supporters claim Michigan's appeal marks the latest in a line of attacks on Native American legal rights.

Concerns about gaming in Macau raised by US Federal panel

US Federal commission investigating relations with China has raised fears over lax financial controls in Macau. The 12-member panel highlighted the risks of easy money laundering and terrorist financing in the region. The 12-member panel, composed of experts in trade, intelligence, defence and international affairs, said it “did not seek nor did it find evidence of wrongdoing by any USbased casino company, either in Macau or in Las Vegas.” But several commissioners suggested that federal oversight or regulation of US gaming companies doing business in Macau might be merited. The commission recommended that the US press Macau to fix shortcomings in its financial regulations. December 2013 casinoreview

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CR134-p32-37-SAGSEv2_Coinslot NEW 12/16/13 5:10 PM Page 1

Review

SAGSE 2013

Despite a slip in SAGSE stats, visitor quality - and confidence - remains high Despite the current hurdles affecting the Argentinean gaming market, the organisers of SAGSE said the 2013 edition of the South America trade show exceeded all expectations.

T 32 | casinoreview December 2013

he 21st edition of the SAGSE Buenos Aires took place took place at Centro Costa Salguero on November 12-14, and despite reporting a dip in both exhibitor numbers and attendees, organisers Monografie said the show remains the largest international gaming exhibition in South America. “This year, we have exceeded our expectations and achieved our programmed goals, in spite of the circumstances that are taking place in Argentina nowadays,” said Alan Burak of Monografie, who noted that interest in other South American countries compensated for the legislative hurdles that continue to act as growth barriers to Argentina’s gambling market. Post-show statistics confirm that SAGSE 2013 attracted 140 exhibitors, down on the 160 last year. Visitor numbers were also down to 6,162 from 6,959 in 2012. Burak, however, said that despite the smaller number of exhibiting companies, those in attendance took up larger booths across the 20,000sq.m venue.

“With exhibitors from many different parts of the world, and the presence of operators from across Latin America that came with great expectations to see the stands, SAGSE Buenos Aires proved its international nature, commercial ethics and professionalism,” Burak said. While visitor numbers may have been lower, it is clear that the quality of delegates to the Buenos Aires trade show remains high. Purchase authority data indicates that 35.74 per cent of visitors were managers, 34.78 per cent of guests were actively involved in influencing purchases and the remaining 29.48 per cent of delegates were final decision makers. Burak stated: “Visitors, in their great majority, were from a high level, and that allowed exhibitors to try out some determination in business. Operators visited us from Brazil, Uruguay, Chile, the US, Peru, Colombia, Paraguay and Mexico. The presence of people from countries including the UK, Italy, Spain, Panama, Bolivia,

Guatemala, Ukraine, Taiwan, South Africa, Romania, Philippines, Nicaragua, Israel, Canada, Bulgaria, Barbados, Germany, Trinidad and Tobago, Puerto Rico, Japan, Greece, Slovenia, Ecuador, Costa Rica, Belgium and Venezuela was also seen.” In terms of the sectors served by SAGSE Buenos Aires, casinos remain the key drawcard of the show, accounting for 24.9 per cent of activity at the expo. This was followed by bingo (16.3 per cent), lotteries (13.6 per cent), online gaming (9.6 per cent). Commenting on the future of the show, Burak said: “Twenty-one years are only the beginning. We still have further to go. We are doing the right things, with meticulousness and commercial ethics, always having a respect for the industry and focusing on long-term plans. We have to beat the obstacles to get a stronger product. The next Monografie-run show, SAGSE Panama, takes place on May 7-8 at the Hotel Panama Convention Center.

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NOVOMATIC GROUP OF COMPANIESYXYXYXY / SAGSE SAGSE 2013

SAGSE 2013: “THIS YEAR, WE HAVE ACHIEVED OUR EXPECTATIONS AND ACHIEVED OUR PROGRAMMED GOALS, IN SPITE OF THE CIRCUMSTANCES IN ARGENTINA....” CONFERENCE

NOVOMATIC/AGI

GGW conference draws in the crowds

A vintage year for Novomatic The Novomatic Group of Companies took its latest cabinet innovations, its most electrifying jackpots and sophisticated systems to SAGSE 2013.

ollowing on from the successful first edition of Global Gaming Woman (GGW) conference at SAGSE Panama earlier this year, the event’s organiser said 60 women from a high level in the gaming industry attended the GGW event at this year’s expo in Buenos Aires. Hosted by Annie Millet, president of Destino Argentina, which represents the country’s leisure, travel and tourism sector, the main goal of the event was to facilitate networking among women professionals in the industry. At the conference Millet shared invaluable insights, experiences and tools that have helped her become one of the most active and famous women in Argentina’s luxury tourism sector. “It’s a big responsibility for us since this is the second time in Latin America we are putting on this crucial type of networking event,” said SAGSE show manager, Alan Burak. “We have great belief in the event because, for us, communication and face-to-face interaction is key to enabling women to advance and succeed. We want to help all women in Latin America to have their own networking in our events.”

he Novomatic booth at the Costa Salguero Exhibition Centre was a key centre of attention at SAGSE this year. In addition to displaying its latest cabinet innovations, a range of jackpots and sophisticated systems developed by the group’s numerous development teams from all over the world, Novomatic also highlighted a new hospitality area in co-operation with one of Argentina’s most famous artists and winemakers, Helmut Ditsch. Show visitors were welcomed by the AGI sales team as well as colleagues of all Latin American subsidiaries. “The interest in the displayed products was great,” the company said in the wake of the Argentina expo. “Particularly the new Novomatic Remote Play system that was presented with a number of Dominator machines drew large crowds. Novomatic Remote Play operates via WLAN and makes the individual games featured in the Novo Line Interactive multi-game mixes remotely

available on a secure tablet PC within the casino’s WLAN.” Further products on show were the Super-V+ Gaminator with Super-V+ and Premium-V+ Gaminator game mixes as well as the Novo-Super Vision and Novostar SL machines. A range of Jackpots and accessory signage presented extra attractions for the region’s casino floors. Also, the innovative and highly popular Pinball Roulette was on show. “First performance figures from installations with Argentinean operators demonstrate that this innovative game concept performs way above the usual slot average in Argentina,” Novomatic said. Octavian was also represented at the show with the modular casino management system ACP (Accounting - Control - Progressives) as well as a range of Octo-Games multi-game mixes. A special highlight at the Novomatic booth was the co-operation with renowned Austrian-Argentinean artist and winemaker Helmut Ditsch. In the

special Novomatic hospitality bar area he presented his range of excellent Argentine wines to the Novomatic guests. Jens Halle, CEO of Novomatic Americas and managing director of Austrian Gaming Industries (AGI), said: “Generally the SAGSE Buenos Aires 2013 gaming show once again seemed to be somewhat smaller than in the previous year and, although visitor numbers are never easy to independently estimate, there certainly was less traffic on the show floor. “From a manufacturer’s point of view it also has to be mentioned that the import situation in Argentina deteriorated during the past three weeks, severely impeding fundamental import procedures. But nonetheless, having made significant investments in the country, Novomatic remains committed to the Argentine gaming industry and will continue to offer its trademark combination of the best products and the best service on the market.” December 2013 casinoreview

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CR134-p32-37-SAGSEv2_Coinslot NEW 12/16/13 5:17 PM Page 3

Review

IGT / KONAMI GAMING

SAGSE 2013

SAGSE 2013: POST SHOW STATISTICS CONFIRM THAT SAGSE ATTRACTED 140 EXHIBITORS AND 6,162 VISITOR NUMBERS.

IGT

KONAMI GAMING

IGT’s Avatar world tour makes a stop in Argentina

Konami takes Podium to SAGSE

The award-winning James Cameron’s Avatar Video Slots from IGT took centre stage on the company’s booth at SAGSE 2013.

GT’s new attention-grabbing logo and ‘Out of the Blue’ brand positioning made their South American debut at SAGSE 2013. At the Buenos Aires show this year, Sabby Gill, senior vice president of international sales for IGT, said the company felt the excitement for the future of the gaming landscape in Argentina and the overall optimism for the South American gaming market. “We proudly debuted our new logo and brand positioning in Latin America and showcased a vast library of bold new content and systems solutions,” Gill stated. “We showed that IGT is the leader in gaming entertainment and creates the most immersive gaming experiences on the planet. We also had the opportunity to introduce Janine Roth, IGT’s newly appointed vice president of sales for SOLAC, to many of our key customers, while we featured other key executives in great panel and speaking opportunities.” SAGSE 2013 was the latest platform for IGT to showcase its award-winning James Cameron’s Avatar Video Slots. “With the global appeal of the Avatar brand, we were confident this title would resonate in all parts of the globe,” Gill said. “Housed on IGT’s stunning CenterStage platform, this game was impossible to miss. Our customers were impressed with the game’s immersive, entertainment experience and the amount of industryfirst innovation within this game. The Enhanced Content feature in Back to the Future - Back in Time was a standout for many visitors; the possibility of having two games in a single cabinet is very appealing to players and operators.” According to Gill, IGT’s market-attuned titles

34 | casinoreview December 2013

were also extremely well received, with Legend of the Gaucho, inspired by Argentina’s rich history, being a “huge hit”. Operators were impressed with the play mechanics, entertainment value and how well it appeals to the players of the region, Gill said. “El Gran Festival successfully transcended the palpable energy of the Carnival environment, and Huevocartoon once again demonstrated that this comical game resonates in all parts of the world,” he noted. “Our skill-based core game, Atari Centipede Video Reel Edge speaks to a whole new generation of slot players and offers an entirely new type of gaming experience, thus creating a buzz across the SAGSE floor. “Our booth guests hailed from all parts of South America, but we did find a concentration of customers from Argentina. Because Argentina is such a dynamic market, with immense growth potential, there is an increased excitement about gaming in that specific region.” As a global company, all regions that have gaming are important markets to IGT. According to Gill, South America is a particularly exciting market right now because of its remarkable growth potential. Rather than being focused on a particular market, IGT has particular focuses for each market. For example, in some regions our focus is more geared toward market-attuned content, while in others we emphasise our premium titles or online gaming. “Many markets enjoy a mixture of all of these elements. I say with total confidence that IGT is committed to finding the best ways to serve our customers and the specific needs of their unique customers. We think globally and act locally.

onami Gaming enjoyed the opportunity to meet with its many South American customers and showcase its recently launched products at SAGSE this year. The Las Vegas-based company’s Podium Goliath, which stands over 7ft tall, is Konami’s newest cabinet in the Podium series. According to marketing manager Annabell Lee: “Casino operators were excited to know that the new cabinet was available with a library of proven performing K2V and KP3 game themes. SeleXion offers up to ten KP3 video themes on the standard Podium and Podium Slant cabinet. Players are able to select games on the main game screen or on the Dynamic Button Panel and switch between titles and denominations instantaneously.” Synkros, which is best known for its reliability, advanced analytics and innovative marketing tools, also gained attention at this year’s SAGSE show, Lee said. “We introduced two of the new marketing features, True Time Tournaments and SuperSeries. True Time Tournaments offers a unique approach to system-delivered community gaming and our customers know how much players enjoy participating in tournaments. Now, players can play tournaments at their own convenience with a player-on-demand format or in a group-start format called SynkStart. Synkros also offers SuperSeries, a multi-level, multithemed, floor wide bonusing tool. SuperSeries was designed to increase time-on-device, visitation rates, carded play rates and player card signups. “SAGSE featured over 6,000 international attendees, which was a great turnout,” added Lee. “We found the majority of attendees were from Argentina and Uruguay. The South American market is essential to Konami. We have gained more of an international presence, especially in the South American market, and casino operators have noticed our proven performing games that continue to do well. We are committed to providing our South American customers with products and services to help their businesses grow.”

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Review

SAGSE 2013

EURO GAMES TECHNOLOGY

TCS JOHN HUXLEY

EGT booth attracts topflight industry players

TCS takes Supernova to Latin America

Euro Games Technology took its full range of new gaming innovations to SAGSE Buenos Aires this year.

ccording to Euro Games Technology (EGT) of Bulgaria, the 2013 edition of SAGSE Buenos Aires gathered the top industry players of Latin America. “At this year’s SAGSE we enjoyed the opportunity to observe the latest worldwide trends in the gaming business as well as to display our own innovations in this sphere,” said Katerina Podymska, director EGT Argentina. “I am glad to say that we noticed a vast recovery of the regional gaming market after the market recession and the smoking ban.” For the first time EGT introduced some of its most recent products to the local Argentinean market. The highlight of the company’s booth was the sleek upright cabinet P-24/24 Up from the Premier Series. In order to offer ultimate experience to the players, EGT offers a wide library of attractive games organized in various multigame mixes, the latest of them, the Premier Multi 4, featuring 40 high-quality games among which keno, card games and roulette games. EGT also presented a multiplayer sys-

tem based on the revolutionary Stork rterminal with innovative 32-inch foursided statistics display. Among the other products on show were the Cat4Cash Progressive Jackpot System and the well-known machines from the Vega Vision+ Series. “The wide variety of innovative products characterised EGT as one of the most advanced gaming manufacturers at the show,” Podymska said boldly. “We enjoyed a constant flow of visitors at the booth not only from Argentina but also

from Uruguay, Chile, Paraguay, Colombia and Peru. All of them expressed their enthusiasm about our products and were eager for future collaboration with EGT. “I would say that SAGSE 2013 has started a process of even vaster expansion of the presence of EGT in Latin America. Our company is well known for its stability and loyal partnership and EGT’s products are becoming more and more popular among the players and the operators.”

MERKUR GAMING

Merkur flies high on Argentinian wave

he highlight on Merkur Gaming’s booth at SAGSE Buenos Aires 2013 was the innovative High-

36 | casinoreview December 2013

flyer gaming terminal. The pioneering Highflyer has been specially designed to enhance player comfort and strengthen customer loyalty and increase dwell time. Its hallmark is the ‘floating’ monitor, which enables the player an unobstructed view around the location. All other players in the location can observe the game on the ‘floating’ monitor at a distance. Optionally, the Highflyer can be placed in such way that the player has their back to the wall, giving them full view of the gaming floor. In addition, the corresponding chair lets the player play when sitting or quasi lying

down. Richard Hellwig, sales director for the Latin America region for Merkur, said: “SAGSE was good. We had a lot of visitors, perhaps more that what we expected. Our visitors came from Argentina, Colombia, Peru, Uruguay and Paraguay, but in comparison to 2012 many exhibitors were missing at SAGSE and by far less visitors attended compared to last year. “All of Latin America is a very important market for us. We certainly want to grow more in existing markets like for instance Mexico, Peru and Colombia but also enter new markets such as Chile, Bolivia and Uruguay.

CS John Huxley showcased its Supernova Progressive Platform along with its Chipper Champ2, traditional high-quality gaming tables, A-Plus shuffler, roulette wheels and winning number displays at this year’s SAGSE Buenos Aires. “We’ve been in Latin America for almost 20 years and have been supplying our products to many of the casinos across the region,” said the Tracy Cohen, director of marketing for TCS John Huxley (pictured here with Brad Broderick, COO The Americas). “We have great local representation with Elizabeth Romano and her team, who work very closely with our customers here to ensure we meet their requirements despite the challenging market conditions. We see Latin America as a big growth area and are committed to supporting our customers and growing our market share in the region.” Cohen added: “We had a really good show with lots of interest in our Supernova Progressive product, as well as the A-Plus shuffler, Chipper Champ 2 chipping machine and roulette wheels and displays. The quality of visitors was good although the show was smaller than 2012, with a more regional emphasis. The majority of visitors to our stand were mainly from Argentina, followed by Chile, Paraguay and Uruguay.” One of the main focuses of the show for TCS John Huxley, Supernova, is a powerful floor-wide event and mystery progressive platform that can adapt to almost any table game, allowing operators to configure as many different prizes and jackpots as they want. “This was the first time we have shown it fully in Latin America and follows the US launch at G2E,” Cohen said. “We’ve had great success in South Africa, with over 60 tables so far placed and we are hoping to the same success in the US and Latin America. The interest it generated certainly supports this.”

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BALLY TECHNOLOGIES / DLV / EGT / GLI / MERKUR GAMING / TCS JOHN HUXLEY SAGSE 2013

SAGSE 2013: PURCHASE AUTHORITY DATA INDICATES THAT 35.74 PC OF VISITORS WERE MANAGERS, 34.78 PC OF GUESTS WERE ACTIVELY INVOLVED IN INFLUENCING PURCHASES.

BALLY TECHNOLOGIES

Bally highlights player-selectable language games Bally Technologies showcased a vast range of new content in Buenos Aires, as the company continues to see the results of its commitment to R&D across games products, systems and interactive technology. ver the past four years Bally Technologies has earned more than 60 awards for innovation and, according to corporate communications director Mike Trask, SAGSE was a “great opportunity” to showcase these developments. “It is always great to be able to meet with our customers and partners in South America,” Trask told International Casino Review. “This year we were especially pleased to show casino operators our latest player-selectable language games that enable players to easily switch from English to Spanish.” At the Buenos Aires expo, Bally presented more than 25 unique game titles, including world-class licensed branded games Michael Jackson Wanna Be Startin’ Somethin’, ZZ Top Live from Texas and Pawn Stars, along with an array of cutting-edge systems technologies. Bally also unveiled a host of new games featuring engaging play mechanics, clever themes, and animated graphics that deliver an exceptional play experience. A highlight on the systems side of the business

was the Bally Enterprise Progressive System (BEPS), which enable casinos to manage and audit their progressives from one central location. Secure, robust, and easy to use, BEPS is perfect for replacing or consolidating existing progressive system and controller offerings into one powerful system. Adding excitement and activity to Bally’s Systems exhibit was the awardwinning Elite Bonusing Suite, including Virtual Racing, Virtual Racing NASCAR, and DM Tournaments, which have powered five world recordsetting events. “We are extremely focused on the entire South American region,” Trask stated. “For this reason we have introduced the new Multi-Game suite for Latin America, combining four popular games into one versatile platform, delivering a variety of options that will please any player. Along with four entertaining games to choose from, Bally’s Multi-Game offers player-selectable English/Spanish. Players can select from up to four denominations and choose different max bet

configurations per denomination, per game - providing incredible flexibility. Our interactive division has also been focused on the region. Just recently we were thrilled to announce an agreement for Bally Interactive to provide its iGaming Platform solution to Conrad Punta del Este Resort and Casino in Uruguay, which is owned by the Chilean group Enjoy. Through Bally’s open iGaming platform, Enjoy will offer their players online playfor-free poker, slot, and table-game content. This best-in-class content is provided by Bally, as well as a number of other top content providers partnering with the company. As a first step, the online games will be available at the OVO Nightclub and Dayclub, a sophisticated space in the hotel that will open in December,” Trask said.

GAMING LABORATIES INTERNATIONAL

GLI stages Argentina Regulators Seminar t’s not an exageration to say that the world’s regulators place much reliance on Gaming Laboratories International (GLI), the world’s leading gaming testing laboratory and technical consultancy, to keep them up-to-date on regulatory implications of new technology. Forming part of its global seminar and roundtable programme, GLI staged the Argentina Gaming Regulators Seminar at the Salon G Leopardi Hotel NH City and Tower in Buenos Aires, Argentina on November 11. Taking place the day before the SAGSE show, the event was co-hosted by GLI South America and the Association of Lotteries, Quinielas and Casinos of the State of Argentina (ALEA). The seminar, produced through GLI’s world-renowned training programme, GLI University, featured high-level discussions of today’s most important topics facing regulators in Argentina, including gaming security, field inspections and audits, progressive systems, and an overview of the online gaming sector. GLI director of Latin American development, Karen Sierra, said: “We staged our very successful Latin American Regulators Roundtable in Peru earlier this year, and now we are turning our focus specifically on Argentina, where there is a rich diversity of gaming that is unique to the country.” Following the day-long Argentina Gaming Regulators Seminar, GLI appeared at SAGSE Buenos Aires to discuss testing and certification, along with the group’s new, exclusive tools, GLiCloud, a real-time inventory control system, and GLI SCALE, a tool for load testing and more.

SAGSE 2013 rated highly by DLV atvian gaming company DLV gave SAGSE 2013 the “highest marks” after the show helped generate numerous new contacts for the group. “We can say with certainty that we are satisfied with our achievements at SAGSE and hope that next year’s exhibition will be equally productive,” said external relations co-ordinator, Julia Barbakadze. DLV’s Diamond Hyrbid cabinet took centre stage at the company’s booth this year. The ergonomic cabinet comes equipped with two 24-inch

widescreens. Visitors to SAGSE 2013 were also able to see demonstrations of DLV’s range of jackpot systems, including Dragon Jackpot, Jewel Jackpot, Vollinstars and Gauya Quest. “South and Central America are among the markets of primary focus for our company, as we are intensively working in many countries of the region, especially in Peru, where we actively and successfully promote our products, Costa Rica, Belize, Columbia and other markets with great potential,” Barbakadze said.

December 2013 casinoreview

| 37

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Supplier

News

SYSTEMS

Downtown and Dini’s opt for Synkros

Both the newly built Downtown Grand and Dini’s Lucky Club in Yerington, Nevada have opted to install Konami’s Synkros casino management system on their properties.

he new kid on the Las Vegas block, Downtown Grand, has opened with a bold statement on the gaming floor. In the heart of Las Vegas’ Downtown3rd entertainment district, the new establishment has turned to Konami’s detailed software system to connect its players to almost 600 sot machines and 30 table games in a highly competitive slice of Las Vegas territory. Synkros ties multiple aspects of the casino floor together to allow operators to target marketing and promotions in an intelligent way. “The success of Downtown Grand is dependent on building a loyal customer

40 | casinoreview December 2013

base,” said Seth Schorr, CEO of the new casino. "We believe the Synkros system differentiates us from the market because of its advanced marketing functionality and ease of use.” Schorr also credits, “the ability to offer advanced bonus features and new entertainment experiences,” as another reason why the Downtown Grand opted to launch with Synkros. Konami were equally enthused by the new Vegas opportunity. “We are proud to have been selected as a partner to help the property manage and deliver a firstrate customer experience in downtown Las Vegas - one of

the most exciting and dynamic areas of the city today,” said director of system sales, Clark Warren. The Downtown Grand is located on 3rd Street between Stewart and Ogden Avenues and is intended to integrate with nearby streets, in contrast to the enclosed design favoured by the vast majority of existing casinos. “We commend Downtown Grand’s progressive philosophy, and we are excited their gaming executives chose the Synkros System to deliver a superior customer experience,” said Warren. The Synkros system allows for a selection of

floor-wide bonus schemes, alongside a tournament system that removes the need for operators to carve out space and move machines. These features were a big driver behind the decision to install the system at Dini’s Lucky Club. According to president Jay Dini the casino, “needed a system that could offer new entertainment experiences like Super Series floor wide bonusing.” Dini’s Lucky Club has been in operation for 80 years and features 163 slot, video poker and keno machines. Dini affirmed that, “the success of Dini’s Lucky Club is dependent on a local cus-

tomer base,” a fact bolstered by the use of Synkros’ TrueTime Patron Management system. “Yerington is a relatively small community, so their business will come largely from repeat visitation,” said Warren. “Synkros will enable Dini’s to target and reward local players who can gamble, dine, and socialise with family and friends in their historical casino environment. Synkros will allow the property to send targeted offers and run promotions with a range of customised bonuses designed to create an entertaining atmosphere and deepen customer relationships.”

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ABBIATI / BALLY TECHNOLOGIES / KONAMIYXYXYXY GAMING SUPPLIER NEWS: JW@SJC.CO.UK

SAGSE 2013 REVIEW 32-37 SUPPLIER NEWS 40-47 B2B LISTINGS 48-49 BUSINESS NEWS 52-57 SECTORS & SERVICES 58-59 EVENTS 60-63 RESTRUCTURE

MERGER

How the Bally SHFL merger passed its final hurdle

Bally appoints new executive team With the deal finally done and SHFL a fully integrated part of the Bally set-up, focus now turns to the business end of affairs for this now mighty industry player.

ally Technologies has announced its new senior executive team following the completion of the company’s acquisition of SHFL entertainment. “The combination of such exceptional leadership from both Bally and SHFL will position us well for the next phase of our growth and will set the bar even higher in providing innovative, award-winning products and world-class customer service and support,” commented Ramesh Srinivasan, president and chief executive officer of Bally. Additionally, several senior executives previously at SHFL entertainment will continue with Bally in various leadership capacities. Roger Snow will serve as senior vice president of table products and Julia Bogus-

lawski joins as vice president of corporate marketing. Deron Hunsberger, Alexander Grohs, Nathan Wadds, Colin Helsen, John Hemberger, Peter Wilkins, Terri Conway, and John Strickland are among other SHFL senior leaders joining the Bally team. Consultant Kevin Verner will continue to the lead the company’s integration efforts, reporting to Srinivasan. Verner has been leading the merger of the two companies over the past several months and previously served as lead independent director on Bally Technologies’ board of directors. “This dynamic team will be focused on executing on our vision to create a world-class end-to-end gaming technology company. Both companies have long histories of innovation and

have evolved to provide our customers with a superior portfolio of products within an everchanging and competitive landscape. The combination of such exceptional leadership from both companies will enable Bally to continue to provide innovative, award-winning products and responsive, world-class customer service and support,” said Srinivasan.

nd so it came to pass that two heavyweights of the gaming industry became one. Providing the final nod to this momumental union were SHFL’s stakeholders themselves who gave their overwhelming support to a long planned acquisition by Bally Technologies at a special shareholders meeting. The deal, which has been mooted since July, would see Bally pay out $1.3bn to purchase the company formerly known as Shuffle Master. Both are stalwarts of the Las Vegas casino industry. Immediately following the shareholders meeting, the Nevada Gaming Control Board gathered to assess the merger and took just over an hour to grant their approval. During the hearing, Bally executives informed Nevada that by unifying regulatory costs and other outgoings the acquisition would reduce overheads by over $30m. The buyout has been funded by a series of loan agreements brokered by Bally with various financial institutions. Committed financing equating to $1.1bn has been obtained, with the remaining $2m coming directly from Bally’s liquid assets. The total cost of $1.3bn is roughly in accordance with SHFL’s revenue during the previous financial year.

EXHIBITION

Abbiati heads to ICE on a reputation roll bbiati Casino Equipment of Italy is all geared up for its appearance at February’s ICE Totally Gaming event, which takes place at London’s ExCeL centre

on February 4-6. Established in 1976, the company has built up an international reputation and client base with almost every county and city that offers legalised

gaming. And it’s on reputation that the company is placing its emphasis. Abbiati’s product portfolio includes American and European roulette

wheels, standard and customised gaming tables, chips, plaques and jetons, electronic displays, 100 per cent wool and microfibre layouts, cards and other gaming acces-

sories. Through the years the Italian manufacturer has concentrated its energy on investigating and studying new technologies. The result is the

development of a brand new range of security features to be added to chips, plaques and jetons that are able to satisfy even the most demanding of their clients.

w w w. j c m g l o b a l . c om

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News

SYSTEMS

GTech installs System2Go in Cambodia Three casinos operated by Entertainment Gaming Asia have been hooked up to the System2go slot management system from GTech. reamworld Poipet, Dreamworld Pailin and NagaWorld Casino have all undergone a full installation of the innovative GTech management programme System2go. The system, designed to help operators manage their slot machines across single or multiple venues, is now installed across Dreamworld’s 652 slot machines in total, making them the first casinos in Cambodia to use the pioneering system . System2go incorporates accounting, reporting and an integrated jackpot system that can run various progressives across a large

number of machines. The system also includes player tracking, which enables Entertainment Gaming to monitor their customers as they move between games. Dreamworld Poipet and Dreamworld Pailin were set up with the Platinum CC edition, which also includes monitoring of ticket-in/ticket-out systems. Poipet is a standalone slot hall with 300 machines, all of which are running GTech’s accounting system. The larger NagaWorld Casino is part of the hotel and entertainment complex in Phnom Penh, which extends over a 7,000 square

metre plot. For this loca- AWARDS tion Entertainment Gaming use System2Go primarily to manage their linked progressive jackpot. Some 300 machines are chained together by GTech’s software which he Sphinx 3D machine from allows all of the venue’s GTech was among the prodslot customers to compete ucts celebrated for technical for the same grand prize. innovation at the Global Gaming “We were looking for a Expo 2013. It picked up the Gaming system from a reputable and Technology Award for the “Best vendor to connect floor- Slot Product” as part of a shared wide mystery jackpots at prize with products from Bally and an affordable price,” said IGT. Petrica Cozman, the AVP GTech’s award winning machine for slots operations at features 3D technology from Entertainment Gaming SeeFront that creates an illusion of Asia. “We have been depth without the need for cusextremely pleased with the tomers to wear bulky glasses. Playproduct performance and ers are able to change direction and support.” alter their viewpoint without dis-

G2E slots award for GTech

rupting the effect, as well as interact with the game using a 23 inch mutli-touch screen from 3M which is customised to work in concert with the 3D technology. Sphinx 3D is a five-reel, 30 line game which sits inside the custom built Axxis cabinet, which features rumble, surround sound and a sliding mechanism for easy entry.

BILL VALIDATION

JCM cash in on Downtown Grand ope

One of the world’s leading suppliers of transaction technology, JCM Global, has been chosen by the newly opened Downtown Grand to provide 100 per he freshly minted Downtown Grand casino sits at the heart of Las Vegas’ historic Downtown3rd Entertainment District , the centrepiece of the city’s scheme to create a new draw for visitors. The casino operated by Fifth Street Gaming,is the brainchild of Las Vegas property developers CIM Group. It occupies the for-

mer home of the Lady Luck casino, which closed after 42 years in 2006, and is the product of a $100m investment in a complex renovation project that has revitalised the old resort. In total, 25,000 square feet of gaming floor is on offer at the new venue, alongside a selection of bars and restaurants. Many of these eateries are unusually positioned along an

42 | casinoreview December 2013

outdoor walkway that is designed to blend into the surround Las Vegas streets. Back inside the casino floor, all of the 600 slot machines will play host to one of JCM’s bill validation machines. Most commonly, their flagship iVizion validator. Chief among its features is the image sensor technology which captures the full

image of any bill which passes through it. According internal tests, this technology results in a 99 per cent accuracy rate. The sensor package is self calibrating and can read barcodes both horizontally and vertically. The iVizion is connected to JCM’s Intelligent Cash Box 2.5, a product designed to simplify and secure transaction man-

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GTECH / IGT / JCM GLOBAL AGEM November statistics 56

AGEM INDEX: AGEM MEMBERS REPORTED LITTLE CHANGE IN THEIR FIGURES FROM OCTOBER 2013...COMPARED TO THE PREVIOUS YEAR, THE INDEX HAS SEEN AN UPTICK OF 44.6 PC.

INSTALLATIONS

IGT uploads first UK casino to the cloud T The Aspers Group of casinos have become the first to utilise International Game Technology’s latest innovation in cloud computing.

he IGT Cloud now links a selection of Aspers locations together into one system that can be used for instant game switching and detailed analytical research. Rather than hosting a suite of games on a local server, the casino accesses titles over the internet, and stores them on IGT’s bank of servers. This enables

software into the cloud. Chief advantages for operators is the ability to break down figures into local and regional skews to develop strategies that rely on machine performance data from a wide spectrum of locations.

This is the first time that IGT have deployed their system in the UK. Currently there are four casinos pooling their data: Manchester, Stratford, Newcastle and Northampton. This quartet contains 103 separate machines, each of which is now sending data to the cloud and drawing titles from the entire IGT UK Advanced Video Platform game theme library. The IGT Cloud enables significant leaps in analytics for individual games. Aspers is now be able to gather data about how specific games are performing across the four linked casinos, rather than simply the machines on which they are played. “The deployment of the UK’s first multi-site cloud casino environment with Aspers Group is another sign of IGT’s pioneering and collaborative approach to transforming the gaming

entertainment industry,” said Sabby Gill, IGT regional vice president of EMEA and LATAM. The UK install came at an opportune time for IGT who have been reflecting upon another impressive spell. The manufactuurer announced a dividend increase for the fifth consecutive quarter. Shareholders will receive an uptick of 57 per cent compared with the same period last year. The payment becomes the 47th successive quarter in which the company rewarded stakeholders. “We are pleased to announce our fifth consecutive quarterly dividend increase,” said Patti Hart, CEO of IGT. “This action reflects the confidence we have in our financial performance and demonstrates our responsible and consistent return of capital to our shareholders.”

operators to make snap decisions about the most suitable game mix for each of their venues and enables the newest titles to be introduced into the system immediately. Over 100 resorts worldwide are already using sbX, IGT’s game management system, and this new development simply takes that

opening

provide 100 per cent of its bill validators. agement. The box records and encrypts data about cash that passes into it and then uploads that information to a secure web server which is accessible to casino staff from any location. JCM’s web software also develops live reports to help reduce variance and mitigate human error. The box also works alongside chips and other casino

products tagged with Radio-frequency identification (RFID) to enable them to be tracked as they pass across the casino floor. This installation at Downtown Grand caps a successful 24 months for JCM. During that period they have won the bill validation business for over 80 per cent of new casinos opening in North America.

http : //www.ltgame.com

Email : sales@hk1180.com

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News

SYSTEMS

Aristocrat launches nLive at Spirit Mountain SLOTS

From bricks to clicks, and all without a care in the world. Aristocrat make the Spirit-ed switch easy. pirit Mountain Casino in Grand Ronde, Oregon has become the latest resort to buy into Aristocrat’s nLive system. The turnkey software developed by the Australian game manufacturer allows for bricksand-mortar operators to quickly convert their brand into an online platform. With an increasing number of states introducing intrastate online gaming regulations, Aristocrat have been focused on delivering key first mover opportunities to its customers. Spirit Mountain is the largest casino and resort in the Pacific Northwest

with a 90,000 square foot operation,and Aristocrat’s nLive system has converted the venue into a play money online casino, with the goal of drawing more players to their landbased location and preparing them for any forthcoming online regulations. As such, SpiritMountain.com features a wide selection of Aristocrat games, including 50 Lions, Queen of the Nile and Miss Kitty. Spirit Mountain Casino general manager Randy Dugger said: “The business case for our launching an nLive virtual casino was very strong. Now our existing land-based play-

ers can enjoy playing their favourite games online at any time. It will also allow us to register new visitors in our Coyote Club membership rewards program.” Spirit Mountain were already using Aristocrat’s Oasis 360 casino management software which has a unique interaction with the nLive system. Using the nLink program, both the online and bricks-andmortar locations can share customer profiles. This allows Spirit Mountain to track player preferences and rewards whether their customers are playing from their own home or in the casino itself.

Aristocrat unleash the Walking Dead

abelled as “the most popular game at G2E” the new Walking Dead machine from Aristocrat will shortly be lumbering onto casino floors the world over. Based on the hit TV show from AMC, the Walking Dead Slot Game has been developed by the same team who crafted the popular Tarzan Lord of the Jungle title. It features a whole range of zombified graphics and includes a selection of footage from the TV show itself. The slot game itself challenges players to battle other characters to win a fight for survival against the unyielding zombie apocalypse. The game features a large selection of bonus rounds, including Reel Growth, where a selection of reels will randomly grow in hight and the Wild Attack round that replaces random positions with wild symbols. The Atlanta Wheel

Bonus round spins a virtual wheel to win the player credits, jackpots, or Escape from Atlanta free games. Each of these will feature clips from the show the synchronise with the action. Players who step up to battle the Walking Dead have a chance to win a Grand Jackpot that starts at $500,000. The game as a 75 credit minimum bet and 300 credit max bet, with a preferred denomination of 1c. Players will sit in Aristocrat’s iChair, which features surround sound speakers and look at the dual 21.5 inch screens of the Verve HD machine. Developed in 2009, the Verve HD was named one of the top 20 most innovative products of the year. The Walking Dead is based on the graphic novel of the same name and has become the highest rated show across all cable and broadcast networks in the United States.

FINANCIALS

Gaming Partners remain positive despite ‘disappointing’ financials aming Partners International Corporation (GPIC) has posted a loss in its revenues for the third quarter of 2013. The provider of casino currency and table gaming equipment reported revenues of $13.5m (E9.8m), compared to revenues of $16.9m (E12.3m) in Q3 2012. The primary reason for the fall in revenue, the company said, was a decrease in casino currency sales in the AsiaPacific region.

During the first nine months of 2013, GPIC posted revenues of $42.4m (E30.8m) compared to revenues of $45.4m (E33.0m) in the first nine months of 2012. Gross profit for the first nine months of 2013 was $13.1m (E9.5m), or 31 per cent of revenues, compared to $15.6m (E11.3m), or 34 per cent of revenues, in the same period last year. The company said that the primary reason for the decrease was fewer casino openings this year.

44 | casinoreview December 2013

GPIC also posted a loss in net income, reporting $83,000 (E60,343), compared to net income of $1.3m ((E0.9m) for the third quarter of 2012. As well as lower casino currency sales, the company said that the decrease in earnings was caused by higher selling, administrative, and research and development expenses. GPIC president and chief executive officer, Greg Gronau, said the results are “disappointing”. “While the

smaller number of casino openings has certainly hurt, efforts to better balance production, develop and get regulatory approval for new product offerings have not progressed as quickly as we anticipated. On the positive side, we have increased revenues from sales of RFID solutions and have increased market share in cards and other consumables, a source of recurring revenue not contingent on new casino openings.”

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AGI / ARISTOCRAT / GLI / GPI / NOVOMATIC Macao: A gaming show first 61

MACAO GAMING SHOW: THE FIRST GAMING TRADE SHOW TO FOCUS SPECIFICALLY ON ASIA, MGS REPORTED THAT 8,634 VISITORS ATTENDED THE THREE DAY SHOW IN MACAU. EXHIBITION

PRINTING SOLUTIONS

AGI choose FutureLogic as printing partners in Romanian VLT deal Novomatic shows support for first Macao Gaming Show

Austrian Gaming Industries have announced a partnership with

FutureLogic which will see the Californian company provide printers for AGI’s new Romanian VLM deal. utureLogic will be providing 10,000 of their GEN2 Universal printers to AGI , as the Austrian company sets about fulfilling its newly won contract to deliver 10,000 VLTs to the state owned Loteria Romana. Each of the machines will require a discrete printing solution and the award-winning GEN2 was chosen by AGI - a 100 per cent subsidiary of Novomatic - for its adaptability and long term prospects. It can support firmware upgrades without being removed from the machine, which allows AGI to keep up with the latest software updates without spending time and money extracting and replacing the printers from all 10,000 machines. The printers can also be hot-swapped without first needing to power down the machine, allowing for any faults to be corrected externally while the VLM continues to serve cus-

tomers unabated. The GEN2 also has design features that preempt forthcoming regulations, allowing them to adapt to the changing gaming landscape in Romania. Thanks in large part to the introduction of this product in 2006 there are now over 1,000,000 FutureLogic printers in operation around the world, with more rolling off the production lines every day. "We are extremely proud of Novomatic’s selection of the GEN2 Universal printer as well as our CouponXpress desktop printer for such a prestigious project,” said FutureLogic’s chief sales and marketing officer, John Edmunds. "We have been working with the Novomatic group of companies for a long time and are

extremely pleased that they have chosen our printing products for the Loteria Romana.” The GEN2 is setup for both ticket-in/ticket-out and promotional couponing in separate secure environments. This innovation feeds into a 50 per cent larger ticket capacity, which saves operators $200 annually per printer thanks to the need for fewer refills.

ovomatic was represented by its long-term partner Jade Technology, with additional support from Austrian Gaming industries personnel, at the first ever Macao Gaming Show in November 14-16. More than 100 exhibitors came together at the Venetian’s Cotai Expo for the three-day inaugural event that was to be ‘By Asia, For Asia and the World’, and the first international gaming show (together with its accompanying conference programme) organised by a Macao organisation. Novomatic expressed its support of MGS by exhibiting a bank of its Dominator cabinet, all connected to a Magic Joker Jackpot and displayed for the first time two Asian themed games - Monkey King and Garden of Fortune. The company said the games attracted “great interest” at the show, as did

the Asian debut of Novomatic Remote Play System, which allows guests to play their favourite machines while away from the gaming floor by use of secure tablet devices. Pinball Roulette, which combines traditional roulette with a pinball-style ball launch mechanism, also proved to be a huge attraction at MGS, Novomatic added. With no doubt that the show will continue in the future, Novomatic said that MGS had been launched in a very positive manner and was a starting point for a significant event to represent Macao’s burgeoning casino gaming industry. • During the show, Jade Technology announced that its application to become a member of the Macao Gaming Equipment Manufacturers Association has been accepted.

TESTING

GLI to bring global experience to ICE

aming Laboratories International (GLI) will present its independent testing, inspection and certification services at ICE Totally Gaming 2014. “Whether you’re an operator, supplier or regulator, today’s gam-

ing industry is like a global chess game, and it takes a long-term strategy to successfully navigate the nuances of regulations in land-based, lottery and online gaming,” said GLI Europe managing director Martin Britton.

GLI’s vice president of government affairs and general counsel Kevin Mullally will address ICE attendees on common standards and regulator harmonisation during the WrB in Conference on February 4. Mullally will also sit on the panel

‘Gaming Convergence’ on February 5 as part of the International Masters of Gaming Law Intensive Masters Class. GLI will be highlighting its global capabilities in professional services, field services and lottery consulting

and testing at the show in London. Britton added: “Because we have 21 locations around the world, GLI is uniquely suited to assist companies and government agencies successfully accomplish their goals.” December 2013 casinoreview

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ALFASTREET / INTELLIGENT GAMING / PATIR DESIGN

News

Star Wars: Continues to play in casinos 58

NO GAMES TO MARVEL: DISNEY HAS DECIDED THAT IN LINE WITH ITS “FAMILY FRIENDLY” BRAND IMAGE IT WILL DISCONTINUE ANY MACHINES BASED ON THEIR OUTPUT.

MOBILE

CASINO SEATING

Premo expands platform

Patir to hit the ground running in 2014 ollowing a successful G2E, the casino seating experts at Patir Design are planning to exhibit at leading European trade shows IMA in Germany and ICE in the UK next year. The company has been showcasing its Cobra Gaminator chair with much success at exhibitions around the world this year. The Cobra Gaminator chair is fully compatible with Austrian Gaming Industries’ Gaminator cabinets. The sliding chair ensures players of all sizes can enjoy full comfort, while it also includes integrated surround sound-style speakers. Patir is a long-term leading European provider of casino seating. The Munichbased company was founded in 1991 and has since gained extensive experience needs and requirements of seating furniand a specific know how of the particular ture for casinos and other gaming venues.

Intelligent Gaming’s mobile gaming platform has expanded to include a more extensive game library, with plans for further launches next year.

PARTNERSHIPS

Alfastreet aims for synergy with partners remo, Intelligent Gaming’s on-premise mobile gaming platform, has expanded its portfolio. Offering iPad roulette to London’s VIP market, the Premo game library now includes Baccarat, Craps, Sic Bo and Bingo and the Playtech company plans to launch a range of new games in 2014. Premo connects to a range of devices, including roulette wheel readers, electronic card shoes and camera based card recognition solutions, enabling players to bet on live tables in any licensed gaming area. The system also provides a random number generator to deliver automated versions of the games. Strategic account manager, Tom Arnold, commented: “In a casino with high peak demand, Premo enables the operator to provide a new channel which

leverages existing equipment and human resources. Areas of the casino such as bars, smoking areas and restaurants are now becoming gaming areas. At the same time, we control the gaming area and prevent use outside licensed zones. As the player leaves the permitted area they will be warned and the game will ultimately automatically lock down. Premo offers the player a more flexible experience which appeals to a younger demographic and gives players the choice of where and how they wish to play.” Carl Rushton, director of products and architecture, explained how Premo has benefitted from the company’s broader experience: “We already connect our casino management systems to a wide range of table devices and Premo integrates with Neon, Playtech

46 | casinoreview December 2013

IMS and third-party systems for player and wallet services. We are also able to deploy components of Neon, including our iPad Manager App in standalone Premo installations, enabling the operator to monitor the action and view the location of each device.” In designing Premo, Intelligent Gaming has built on Playtech’s expertise in developing mobile gaming apps. “Retail operators are now able to offer a high-end tablet gaming solution while multi-channel operators can offer a consistent and seamless gaming experience,” said Rushton. Premo will officially be launched at ICE Totally Gaming 2014 in London and showcased on the Playtech stand alongside Neon, Intelligent Gaming’s casino management system.

lfastreet took the opportunity to meet up with its long-term partners during this year’s Russian Gaming Week, which was held in Minsk, Belarus, November 27-28. The company said it is looking forward to “future prospects of joint cooperation” in what it considers to be “a very promising market.” The Russia show saw Alfastreet showcase the latest evolution of its signature eight station roulette R8, as well as other products from its 2013 range. The company has reported that its single terminal R1 has received significant interest as it can be combined in numerous set-up options, giving oper-

ators freedom in positioning and connectivity. “We have received a lot of demands from our existing partners and established many new connections which is the best reward for our efforts to adapt to market specifics and our client's needs,” said Alfastreet. One of the company’s primary goals is the synergy with its partners in market developments, giving an inside perspective on what the player's wishes and expectations are. “As always, we guarantee our full support to our partners and this is the base for successful long-term partnerships in a very interesting market.”

www.patir.de info@patir.de

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Listings

Business2Business

SYSTEMS

Bally Technologies announces systems and interactive agreements New high-end Las Vegas Strip property, SLS Hotel & Casino will utilise the Bally Technologies product portfolio and offer a unique loyalty programme after signing a systems and interactive agreement.

LISTINGS

LS Hotel & Casino in Las Vegas has selected Bally Technologies’ range of systems and interactive solutions for its venue. The agreement includes floor-wide deployment of Bally’s iView Display Manager (DM) with Elite Bonusing Suite (EBS), enabling SLS to offer guests bonusing events such as DM Tournaments, U-Spin Bonusing, Flex Rewards and Virtual Racing. SLS will use Bally’s ACSC slot monitoring, marketing, player-tracking, and accounting solutions, as well as the state-of-the-art Promotional Kiosk application, the automated dispatch and alert system Service Tracking Manager (STM), and Bally Business Intelligence to analyse and visualise data. Additionally, SLS will utilise Bally’s open iGaming Platform to provide content from a multitude of providers. “The Bally product portfolio allows SLS Hotel & Casino to offer a broad loy-

APPOINTMENTS GeWeTe appoint chief of UK and Ireland operations

erman change machine manufacturers GeWeTe have appointed Mark Edmundson to head up their UK and Ireland operation. Formerly the operations director for Thomas Automatics, Edmundson has been running his own independent consultancy since 2010. “Our market penetration has grown strongly in recent years in the UK and Ireland,” said Aristidis Tsikouras, managing director of GeWeTe. “The demand for ‘made in Germany’ change machines in the UK and Ireland continues to grow.”

Executive reshuffle at Scientific Games

cientific Games Corporation have appointed David Kennedy as their new chief executive officer. He succeeds A. Lorne Weil who had acted as both CEO and chairman of the board. As part of this restructuring, the position of chairman has been occupied by Ronald Perelman.

48 | casinoreview December 2013

alty programme across our entire business operation,” SLS Hotel & Casino president and chief operating officer Rob Oseland said. “We want to provide our guests a one-ofa-kind experience to reward their loyalty at hotels, nightclubs and restaurants across the country, while having seamless integration with the new Las Vegas casino. These integrated products will eventually allow for a single view of the player, positioning us well for the future.” Bally Technologies’ president and chief executive officer Ramesh Srinivasan commented: “We are able to configure all of our systems solutions to create unique possibilities for each customer.” The hotel and casino is scheduled to open in autumn 2014 with more than 1,600 guest rooms, 800 gaming machines, and 80 table games.

Scientific Games is in the process of merging with WMS Industries and the new CEO has been charged with overseeing the smooth integration of Scientific’s new acquisition.

AWARDS GLI CEO honoured by Rutgers

he CEO of Gaming Laboratories International, James Maida, has been awarded the Arthur E. Armitage Sr. Distinguished Alumni Award by Rutgers University School of Law, Camden. The honour is given to a former student who has a significant contribution to his or her profession. “I am grateful to Rutgers University for acknowledging the work and efforts

my family and I have done over the years,” Maida said. Maida graduated from Rutgers with high honours in taxation.

CERTIFICATION GSA approve ComTrade’s sCore update

he Gaming Standards Association has certified the latest version of ComTrade’s sCore G2S protocol engine. The international trade group tested ComTrade’s central control system for governments against their G2S 2.1 and GSA Point-to-Point standards. Image: CR134 B2B COMTRADE

EGT receive approval for Croatia instillation

uro Games Technology (EGT) has received approval to install its newest EGT Automatic Roulette tables in Croatia, following certification from Czech firm ITS Laboratories. “We already have agreements with some of the key operators in Croatia and will announce significant installations in a

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YXYXYXY SUPPLIER NEWS: JW@SJC.CO.UK

APPOINTMENTS AWARDS CASINO SEATING CHANGE MACHINES CLASS III GAMES GAMING PLATFORMS HARDWARE JACKPOTS MERGERS & ACQUISITIONS MULTIGAMES PROMOTIONS REGULATION ROULETTE LOTTERY

MOBILE

GTech reduce Italian penalty

Tech have ended the machine gaming litigation issued against Italian subsidiary Lottomatica. Following an initial hearing on October 30, 2013, the company had been hit with fines of E100m. An appeal, which took place in November, has lowered that figure to 30 per cent of the original value. GTech have already paid €10 million in fines, leaving them with E20m more to cover. Lottomatica, a subsidiary of GTech, are the largest gaming and lottery operator in the country and manage a total of 283,916 terminals. These legal proceedings were part of a ruling from the Italian Audit Department, brought against all 10 of the country’s operators. The state had initially sought damages of E98m in 2007, but had since reduced the amount to around E2.5bn. This latest stage in the legal proceedings has further reduced the amount that GTech themselves are required to pay.

very short time,” said Ivo Georgiev, Manager of their multiplayer solutions department. First on that list is the Royal Casino in Zagreb, which will shortly play host to a selection of VEGA-R machines.

FACILITIES BMM unveil Las Vegas construction plans

aming laboratory BMM Testlabs has announced plans to expand its Las Vegas testing facility in 2014. Work begins in January and, when complete, will result in a 65 per cent increase in service delivery

space. BMM are also in need of additional capacity to cater for their rapidly expanding workforce. The decision to extend their headquarters comes less than a year after the building’s grand opening in 2013.

GAMING PLATFORMS FutureLogic sign up as EGT technology partner

utureLogic has been chosen by Euro Games Technology (EGT) as its preferred supplier of ticket and coupon printers. The Bulgarian machine manufacturers completed an extensive survey of the available options and concluded that FutureLogic provided the best fit for its ticket-in/ticket-out requirements. “FutureLogic's reputation for performance and reliability and its ongoing support for our global expansion makes them the

ideal partner for our TITO and promotional couponing applications,” said EGT’s managing director, Vladimir Dokov.

SIGNS Lighting innovation from Gaming Support

aming Support has unveiled what they believe to be the successor to neon lighting: RGB Contour. This new system can change colours on demand and is more durable that traditional casino signage. RGB Contuor lights can be retrofit in a standard or slimline size that uses low voltage LED lighting to reduce power consumption and increase lifespan. The signs can also be controlled remotely, allowing operators and manufacturers to program in colour sequences or make lighting changes on the fly.

Aristocrat reveal mobile plans

ristocrat have announced plans to release digital versions of their newest games to mobile devices before they are launched. The plan, which will begin next year, has been made possible by increased investment in the technology used to program and develop games. The Australian machine creators purchased Facebook game developer Product Zone in 2012 and are likely to break out their operation to a discrete mobile app in the near future. Product Zone have developed onlineonly titles since their acquisition, including Heart of Vegas, which was named by Facebook as one of its 20 top apps during 2013. The service creates revenue by allowing players to purchase extra credits and has so far generated around $20 million. Aristocrat also plans on using the technology to distribute their newest games to online casinos in jurisdictions where legal industries have been established.

December 2013 casinoreview

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WHY INTERNATIONAL CASINO REVIEW IS THE INDUSTRY’S MEDIA PARTNER OF CHOICE! B

THE BEST WAY TO REACH OPERATORS A

84.2%

Operators

Regulators/Government/Law

Global Circulation

Readership breakdown by sector

16,844

13.8% Suppliers

A READERSHIP OF INFLUENCERS AND DECISION MAKERS A

30.1%

20.4%

C-Levels (chairman, president, CEO, partners)

46.6%

2.9%

USA/CANADA/CARIBBEAN

Senior management (Operational managers, sales/ marketing/PR managers…)

Managing directors/ general managers

2,004 11.9%

Readership breakdown by job title

Others (senior game designers, ﬁnancial directors…)

INCREASING CROSS CHANNEL READERSHIP A

62.9%

2.5%

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

CR134-p52-56-Business_Coinslot NEW 12/17/13 3:06 PM Page 1

Business

& City News

The Gambling Commission of Great Britain has delivered a mixed bag to the gaming industry, following the publication of its latest set of sector statistics, which indicate a rise gross gambling yield across the bingo, casino, landbased betting and online gambling sectors, but a decline in arcade gaming. James Walker reports.

INDUSTRY DATA

Latest UK gambling industry statistics reveal new winners and losers the UK’s Gambling Commission has published its latest industry statistics for the period April 1, 2008 to March 31, 2013, with growth being seen across the betting, bingo, casino and remote gaming sectors, and a decline in arcades. During the five-year period, the British gambling industry generated a gross gambling yield (GGY) of £6.3bn (E7.5bn), a rise of £0.44bn (£0.53bn) between April 2011 and March 2012. The non-remote betting sector represents the largest market within the industry with a 51 per cent share, followed by the casino sector (15 per cent) and the British regulated remote sector (13 per cent). Growth was seen across all with the exception of arcades, which reported a reduction in GGY. Drilling down into the figures, GGY across the nonremote gaming sector totalled £5.2bn (E6.2bn) in the period from April 2012 to March 2013, compared to

52 | casinoreview December 2013

£4.9bn (E5.9bn) in fiscal 2008. During that time, GGY in the land-based betting sector rose 10.4 per cent to £3.18bn (£3.8bn). GGY in the casino industry totalled £961m (E1.1bn, up 12.4 per cent), while for the bingo sector this figure stood at £711 (up 1.1 per cent). The Commission’s latest report indicates the number of people working in the industry has declined slightly overall. The arcades, betting, bingo, lotteries and remote sectors experienced a decline in the number of employees between April 2011-March 2012 and April 2012-March 2013. Casino and gaming machine technical saw increases across the same period. According to the Commission, there were 143 casinos operating at September 30, 2013. Following the sale of most of the Gala Casinos estate to Grosvenor casinos in May 2013, there are now two companies which own

the majority of casinos in the on the March 31, 2011, figure industry: Rank Group of 659. The number of (Grosvenor Casinos and ‘G’ Casinos) with 59 casinos, and Genting UK (Genting Casinos/Clubs) with 41 casinos. Although the Commission has been collecting data on gaming machine manufacturer’s since 2007, the latest report included the first detailed picture on the sector. As at September 30, 2013, there were 612 gaming machine licensed activities. This is a decrease

employees in the gaming machine manufacturing sector, however, rose from 6,983 in the April 2011March 2012 period to 7,530 in April 2012-March 2013, indicating a reverse in the declining trend. The Commission said a number of manufacturers submitted their annual regulatory return information after the cut off for inclusion in the most recent edition of its industry statistics. Yet while the next edition of the

CR134-p52-56-Business_Coinslot NEW 12/17/13 3:18 PM Page 2

AGEM / ARISTOCRAT / BALLY TECHNOLOGIES / GAMBLING COMMISSION / GENTING / INTRALOT / MOHEGAN SUN / SJM HOLDINGS YXYXYXY SUPPLIER NEWS: JW@SJC.CO.UK

BUSINESS & CITY NEWS 52-55 SECTORS & SERVICES 58-59 EVENTS & DIARY 61-63

ARISTOCRAT

Aristocrat posts group profit increase Despite fewer scheduled game releases in Japan impacting group revenue, Aristocrat saw its full year profit rise almost 17 per cent thanks in part to strong growth from its North American business. ristocrat reported profit after tax and non-controlling interest of AUD$107.2m representing a 16.9 per cent increase, compared to $91.7m in the previous period. Fewer scheduled game releases in Japan impacted group revenue, down 3.5 per cent, while reported EBIT grew 4.0 per cent. Excluding the variability driven by the Japanese game release schedule, revenue increased 4.3 per cent and EBIT increased 18.4 per cent. Operating cash flow of $98.2m was 40.6 per cent

lower than the prior corresponding period, predominantly reflecting movement in working capital driven by the timing of revenues. This was influenced by the timing of the second Japanese game and Australian and North American growth in the September quarter driven by new product releases. The group has continued to invest in its gaming operations install base as well as undertaken two acquisitions ($16.3m) and funded higher dividends ($49.5m). Chief executive officer and managing director,

Jamie Odell, commented: “Aristocrat has reported another year of strong performance over the 12 months to 30 September 2013. This builds on our medium term record of double-digit NPAT growth, with better quality games and products sustaining robust operational performance despite increased competition in many key markets. Aristocrat has refreshed our growth strategy, and put in place its foundations including measured and strategic acquisitions, industry leading creative and technical talent pools, a

step-change in enabling technology, better processes, insights and a high performance organisational culture.” The group made significant investments in creative and technical talent and better technology, consistent with its plans to take share in priority segments across key markets. Over the 12 months to September 2013, it also bedded down online and social gaming acquisitions, giving it a cost-effective and strategically sound foothold in these fast-growing, emerging value streams. Odell explained: “Our online and digital businesses are growing quickly and represent an exciting and expanding value stream that we are prioritising in line with our strategy.” Operational highlights include outstanding performance across the Americas business, with almost 12 per cent growth in the group’s gaming operations footprint, an incremental lift in outright sales share in a highly competitive market and a 5.4 per cent increase in average selling price compared to the prior period.

Aristocrat also maintained its leading position in the Asia Pacific region, made significant progress aligning its Australian game portfolio with its strategic priorities and began deploying and monetising premium Aristocrat content, while steadily building distribution reach, in its online business. Odell added: “Improvements have not been even across markets in 2013 and there is much more to be done as we work to fill product pipelines with compelling new product. Nevertheless, it’s already clear that our product-led, share-taking strategy is reaping rewards and we are absolutely focused on accelerating the implementation process over the coming months. While conditions will remain competitive across major markets, we expect continued strong NPAT growth over the 2014 full year, driven by improvement in operational performance across our key markets, partly offset by a significant uplift in D&D investment as we build for the future consistent with our strategy.”

MACAU

Macau gambling revenue at high end of analyst estimates industry statistics, scheduled for publication in June 2014, will contain the full dataset for this period, the current figures indicate a decline in total new machines sold between fiscal 2012 and 2013. According to the Commission, the gross value of sales from new machines sold totalled £42m (E50.2m) between April 2012 and March 2013, down on the £58.3m (E69.7m) in the April 2011 to March 2012 period.

vents including an international boxing match and the annual Grand Prix motor race led to more highspending visitors in Macau and saw gambling revenue in the Chinese casino hub increase 21.3 per cent year on year in November. Analysts had forecast median growth of 20 per cent, with revenue reaching the high end of those estimates at 30.18bn patacas - the fourth highest this year - according to

government data released at the beginning of December. Casino operators Sands China, Melco Crown Entertainment, Galaxy Entertainment, MGM China, SJM Holdings and Wynn Macau are beginning to increase non-gaming amenities, such as Melco’s House of Dancing Water show and Galaxy’s film theatre, following pressure from the central government in Beijing to rely less on gambling and diversify

into other types of leisure and tourism business. Macau, which currently has 35 casinos and eight in the works, is set to benefit from new rail links that will shorten travel times to China’s northern cities, as well as from the planned expansion of ferry terminals and the international airport. The former Portuguese colony will also experience growth when a bridge joining Macau with Hong Kong and the city of Zhuhai opens by 2016. December 2013 casinoreview

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Business

& City News

Australian arts fund

ARTS: CROWN RESORTS CHAIRMAN JAMES PACKER HAS ANNOUNCED A PROPOSED A$60M PHILANTHROPIC CONTRIBUTION TO THE AUSTRALIAN ARTS COMMUNITY.

BALLY TECHNOLOGIES

Announcing an accelerated closing of its acquisition of SHFL, Bally says the combination of the two companies creates a world-class, end-to-end gaming technology innovator with the industry’s most diversified product suite and several successful brands. ally Technologies has completed the acquisition of SHFL entertainment. As previously announced and agreed by Bally, SHFL shareholders are receiving $23.25 (E16.9) per share in cash for each share of SHFL stock. The transaction is valued at approximately $1.3bn (E0.95bn), including assumed net debt. “We are thrilled to announce the successful completion of our acquisition of SHFL, marking the beginning of a combination of two best-in-class, highly complementary and customer-centric gaming technology companies that will be even stronger together,” said Ramesh Srinivasan, Bally Technologies’ president and chief executive officer. “Bally and SHFL both have a strong culture of

commitment to innovation, responsive customer service, and quickly adapting to change in a fast-paced industry. As a combined company, we believe we will enhance our ability to serve our customers, accelerate innovation, improve upon our collective product portfolio, and deliver meaningful long-term value to our shareholders.” After it was announced in July that SHFL had entered into a definitive agreement and plan to merger with Bally Technologies, SHFL scheduled a special meeting on November 19 of its shareholders to consider and vote on the proposal to approve and adopt the agreement. The merger was subject to the approval of a majority of the outstanding shares of SHFL’s common stock and the receipt of required gam-

Bally Technologies completes SHFL acquisition

ing approvals. Srinivasan continued: “We have dedicated significant resources towards integration-planning efforts over the past several months which have reinforced our expectations around the business and financial objectives for the acquisition. Our integration-planning efforts have exceeded our initial expectations as demonstrated by the accelerated closing of the acquisition, day one assembly of a combined world-class executive management team, and rapid identification of incremental opportunities for revenue and synergy development. We look forward to providing an update on our second quarter fiscal year 2014 earnings call in early February 2014.” In connection with the acquisition, Bally amended and restated its existing $1.1bn (E0.80bn) credit facility and closed a new $1.1bn Term Loan B facility with an all-in yield of 4.375 per cent. Proceeds from the new Term Loan B facility and excess capacity under the existing credit facility will be used to fund the acquisition and pay related fees and expenses.

GENTING

SJM HOLDINGS

Q3 profit surges for Genting

SJM Holdings makes Forbes Asia ‘Fabulous 50’ list

alaysian casino operator Genting posted an increase of 65 per cent to M$462.1m (€106m) in its net profit for the three months ended September 30, compared with $279.42m ringgit during the same quarter last year. Revenue rose 12 per cent to $4.7bn from $4.21bn previously. The gaming-to-plantations conglomerate said that stronger performance in its gaming businesses in Singapore and Britain, as well as its power division contributed to the better earnings. “The current global economic environment is still relatively unpredictable,” said Genting in its quarterly

results statement. “The continued weakening of regional currencies versus the Singapore Dollar continues to make Singapore a more expensive destination for the regional customers. “GENS (Genting Singapore) is seriously pursuing

54 | casinoreview December 2013

opportunities in the gaming, leisure/entertainment and hospitality sectors in the region. Such projects are appealing where the development complements its existing competencies and the projected returns are significant to its corporate objectives.

GENS continues to monitor with great interest the legislative passage of the Integrated Resort Execution Law in Japan.” The company added that in the UK its emphasis remains on growing market share outside of London, with the development of Resorts World Birmingham on track for opening in 2015. Revenue from Resorts World Sentosa (RWS) for both the gaming and nongaming business segments performed better compared with the previous year’s corresponding quarter. The gaming business segment continued to report higher volume in the premium players business.

acau casino operator SJM Holdings has been included on the Forbes Asia’s “Fabulous 50” list for 2013, which cites Asia’s top listed companies. Robert McBain, chief financial officer of SJM Holdings, received the award for the company in a ceremony honouring the 50 recipients held in Beijing in November. The Forbes Asia Fabulous 50 companies were selected from 1,220 Asian companies that had at least US$3bn in annual revenue or market capitalisation, and were further evaluated for revenue, profits, return on capital, share-price

movements and outlook. Dr Ambrose So, chief executive officer of SJM Holdings, commented: “SJM continues a long tradition of serving the tourism market and contributing to the Macau community. We face the future with confidence as we undertake the development of a major integrated resort in Macau’s Cotai area.”

FASCINATION is the key.

It is the passion of our game design teams to create games that are great entertainment, capture playersâ&#x20AC;&#x2122; attention, who then witness unforgettable pleasure in playing â&#x20AC;&#x201C; in short: we focus on player fascination. That is why we offer most diverse games with different themes, gripping win-line concepts and exciting features.

CR134-p52-56-Business_Coinslot NEW 12/17/13 10:59 AM Page 4

Business

& City News

Tokyo: Casinos on the way? 63

KATE CHAMBERS: “CASINO ADVOCATES HAVE BEEN WAITING 10 YEARS FOR A LAW TO BRING RESORT-SCALE GAMBLING TO THE WORLD’S THIRD LARGEST ECONOMY.”

INTRALOT

AGEM

Intralot posts ‘well balanced result of growth and financial strength’

November AGEM Index reports a slight dip in fortunes After four months of unbridled increase, November’s AGEM Index saw growth level. But the year on year progress is definitely on the rise.

Greek gaming company Intralot sees EBITDA grow by 22 per cent, while revenues are up 7.9 per cent to E1,080m. ntralot Group has posted a 7.9 per cent increase in consolidated revenues to E1,080.0m in its financial results for the nine-month period ending September 30th 2013. EBITDA increased by 22.6 per cent to E143.5m, while EBT increased by 23.3 per cent to E40.1m. Net profit for the period was E0.5m and was strongly affected by E10m of negative FX differences. On an adjusted for FX-basis, net profit would have reached E10.5m in the nine-month period. Intralot group CEO, Constantinos Antonopoulos, commented: “As we are

approaching the end of the full year 2013, the financial performance of Intralot during the nine-month 2013 period is a well balanced result of growth and financial strength: on a group level our revenues increased by almost eight per cent and EBITDA posted an impressive growth rate of more than 22 per cent in the respective period. EBITDA margin increased to 13.3 per cent in the nine-month 2013 period, compared to 11.7 per cent in the same period last year. “This is the fourth consecutive quarter that we see an improvement of the EBITDA margin, which is in-line with our strategy to continuously

improve our existing operations and to selectively participate in projects that are very promising. Moreover, the improvement of EBITDA margins and financial results, despite the FX impact we have witnessed in the last couple of quarters, is also indicative of the strength of the real, underlying business. In our view, FX impact is a short-term and temporary situation that we expect to improve in the next few quarters.” Intralot recently signed its third contract in Taiwan, to offer sports betting services to the license holder in the country for a period of 10 years. This project marks the group’s third

co-operation in Taiwan, having previously been selected as the technology supplier for the ChinaTrust Commercial Bank, and also the technology provider for sports betting. In Greece, Hellenic Lotteries, in which Intralot participates, acquired a 12-year licence to offer instant and passive tickets in the country, an operation that is expected to start in Q1 2014. Finally, in Turkey, the process to acquire an additional stake of more than 25 per cent in the group’s subsidiary company Bilyoner finalized in Q4, a move that will increase its presence in the growing sports betting market of Turkey.

MOHEGAN SUN

Mohegan Sun Q4 profit down

he parent company of Mohegan Sun casinos in Luzerne County and Connecticut has reported a two-thirds decline in its Q4 profit. Net income for the three months ending September 30 was down 67 per cent to $4.9m from $14.8m compared to the same period last year, while revenue was down two per cent to $345.3m from the fourth quarter in 2012. Gaming revenues dropped almost three per cent to $304.6m, with adjusted EBITDA falling 4.7 per cent to $77.2m. The company said that “the declines in adjusted EBITDA and income from operations resulted primarily from increased corporate expenses due to higher professional and development related expendi-

56 | casinoreview December 2013

tures, including expenditures associated with its pursuit of a Massachusetts casino license, combined with increased refinancing related costs.” Adding: “The reduction in net income was principally attributable to a loss on early exchange of debt and writeoff of debt issuance costs, combined with the decline in income from operations.” Chief executive officer Mitchell Grossinger Etess said recent debt refinancing is ‘extremely significant and will strengthen the tribal authority’s balance sheet and improve cash flow’. He added that the recent opening of the new hotel at Mohegan Sun at Pocono Downs is an “extremely positive event” for the company.

he members of the Association of Gaming Equipment Manufacturers (AGEM) reported little change in their figures from October, 2013, posting a composite score of 193.47. This was marginally down from the previous month, with figures dropping by as little as 0.04. When compared with the previous year, however, the Index has seen a 59.66 gain, which amounts to an uptick of 44.6 per cent overall. Six of the AGEM companies recorded an increase in their share price during November, while nine reported a drop. Only WellsGardner Electronics ended November where they began it, with its stock price maintaining its value. Overall AGEM’s members performed slightly worse than the broader stock markets, with both the S&P 500, NASDAQ and the Dow Jones posting increases for November. One company disappeared from the AGEM index this month, having been absorbed by another member. With Bally completing its purchase of SHFL during the month, the latter has been struck from the register. Crane Company continues to hold the highest stock price at $62.31 (E45.3), although they posted a drop of 1.87 points over the previous month. The biggest percentage gains were made by Daktronics, whose shares rose in price by 27.93 per cent from $11.96 (E8.67) to $15.30 (E11.12). IGT made the largest points impact on the Index this month, dropping 6.79 percent to shave 2.09 points of the cumulative total. Aristocrat Technologies were also a negative contributor, posting a 6.5 per cent decrease in share prices which knocked 1.61 points of the total score. AGEM have highlighted the recent launch of online gaming in New Jersey as a fertile area for their members to exploit. New Jersey is the largest American state to regulate online gambling so far, alongside Delaware and Nevada.

agem.org@cox.net www.agem.org tracy.cohen@agem-europe.com

CR134-p58-59-Sectors_Coinslot NEW 12/17/13 4:30 PM Page 1

Sectors

& Services LICENSING

Marvel and Star Wars slots to disappear from casinos

ollowing the acquisition of both LucasFilm and Marvel, Disney has decided that in line with its “family friendly” brand image it will discontinue any machines based on their output. There are currently a wide variety of slot machines based around characters such as Spiderman and The Avengers. International Game Technology has been developing games based on the Star Wars franchise since 2003. Disney completed a $4.05bn (E2.94bn) purchase of George Lucas’ Star Wars production company earlier in 2013 and has begun pre-production on a new trilogy of films. Speaking to the New York Times, a Disney spokeswoman confirmed that the entertainment giants had been in the process of removing Marvel machines for a number of years. “Marvel discontinued plans to initiate or renew slot machine licensing arrangements as part of its integration with Disney,” she said.

CONTENT

MGT buyout mobile developers Avcom

New titles performing well for SG Games

he operators of the handheld gaming platform, Mobile Vegas, have been acquired by MGT Capital Investments. The online slot service operated by Avcom, who have built up a user base of around 650,000 players, also operate a proprietary mobile gaming platform and analytics service. “The acquisition of Avcom, including its leadership team, places MGT in a strong position to capitalise on the popularity of the social casino industry,” said a company representative.

58 | casinoreview December 2013

New machines based on Marvel characters are still being produced, but Disney claim that these are the result of agreements signed before Marvel was purchased in 2009. “The handful of remaining license agreements have expiration dates within the next few years,” the spokeswoman confirmed, indicating that no new deals would be signed in the future. The length of these agreements means that it may take a number of years for the more recently acquired Star Wars to disappear from gambling establishments entirely. Disney is also fighting plans by Las Vegas Sands to open a new casino in Florida, home of their Walt Disney World resort. “We oppose the legalisation of so-called destination resort casinos because this major expansion of gambling is inconsistent with Florida's reputation as a family-friendly destination," said Andrea M Finger of the Walt Disney World resort.

AQUISITION

LISTINGS

Disney plans to phase out all Marvel and Star Wars machines over the next few years.

G Gaming, a division of Scientific Games, has released three new titles into the arcade, bingo and licensed betting office sectors. Barkin’ Mad, The Big Cheese and Money Mad Martians have all undergone successful launches, currently finding themselves among the top performing LBO titles available. Rick Mountney, director of content development for SG, said his team, “have a long track record of developing games that prove to be player favourites.” Image: CR134 B2B SG GAMING

FINANCIALS Ainsworth post buoyant financial results

insworth Technology have released upbeat predictions for the company’s future revenue following the publication of

their 2013 report. During that financial year overall revenue grew 32 per cent to $198m (E143m), while EBITDA also climbed 32 per cent to $74m. Looking ahead, the company have predicted that during the six month period ending 31 December, 2013 the company will record after tax profits 40 per cent higher than the same period in 2012.

LOTTERY Intralot supports Africa’s first WLA certified lottery

a Marocaine des Jeux et des Sports have become the first lottery in Africa to be awarded EL and WLA Responsible Gaming (RG) Certifications.

CR134-p58-59-Sectors_Coinslot NEW 12/17/13 4:11 PM Page 2

YXYXYXY SECTORS & SERVICES NEWS: JW@SJC.CO.UK

ACCOUNTS ARCHITECTURE B2C BETTING CATERING FURNITURE LICENSING MOBILE ONLINE GAMING POKER TOURNAMENTS SLOTS SECURITY TABLE GAMES TRADING VIRTUAL SPORTS ARTS

Crown Resorts to donate A$60m to Sydney Arts Fund

rown Resorts chairman James Packer has announced a proposed A$60m (E40.6m) philanthropic contribution to the Australian arts community, as part of a joint 10year commitment from the recently established Crown Resorts Foundation (CRF) and the Packer family. Packer pledged A$30m (E20.3m) from Crown Resorts as part of its corporate social responsibility programmes and $30m privately from the Packer family, beginning in the 2014/15 financial year. It has been proposed that the fund will be known as the Crown Resorts Foundation Sydney Arts Fund and that half of the funding will be committed to and spent in Western Sydney. Distribution of the proposed Crown Resorts Foundation Sydney Arts Fund will be split between the Sydney Theatre Company, the Art Gallery of New South Wales, the Australian Museum of Contemporary Art, the Bangarra Dance Company, Sydney Symphony Orchestra, Australian Chamber Orchestra, Sydney Dance Company, Sydney Opera House and a number of

Their operational services and technology is supplied by Intralot, who have provided modern RG technology to La Marocaine through their subsidiary Intralot Maroc. Additionally, the company have been on hand to provide training and support to the African lottery firm as they progressed through each stage of certification.

MOBILE

maya Gaming Group’s suite of games is to be folded into bwin.party’s New Jersey online casino. The site, which is operated by bwin.party in partnership with Borgata casino, will be fully integrated with Amaya’s Casino Gaming System. “Our agreement with Amaya will enable players in New Jersey to access an even wider range of market-leading online casino games,” said Golan Shaked, director of games at bwin.party.

Intertops Casino reveal new Santastic game

others. “We understand the importance of supporting the communities we operate in and are very excited in regard to the future endeavours of the Crown Resorts Foundation,” said Rowen

The new software enables, “players to play their favourite Bingo and side games on the move,” said Ian O’Farrell, head of promotions at Broadway Gaming.

Telecoms research predicts major mobile gaming increase

Craigie, Crown Resorts chief executive. “The proposed Arts Fund will be one element of a larger national philanthropic commitment from Crown that will be announced through the CRF in the first half of 2014.”

mobile casinos and purchase lottery tickets will rise to 164 million by 2018. Many of these customers will be transferring away from desktop gambling.

new festive-themed game has launched at Intertops Casino. The online slot game features a traditional 3-reel design and is part of the casino’s celebration of its thirtieth year of business.

SLOTS Betsoft sign landmark Codere deal

ONLINE Amaya enters New Jersey agreement with bwin.party

Glossy Bingo releases mobile client

3 G

lossy Bingo have confirmed the successful launch of their mobile HTML 5 bingo service. This is the second mobile product launched by Glossy’s parent company, Broadway Gaming, following the addition of phone and tablet support to Butlers Bingo in Q4 2012.

uniper Research have predicted that the number of customers using their mobile devices to gamble will increase by 100m over the next five years. In a report released December, 2013, the group revealed that they expect the number of people using their mobile devices to place bets, visit

D developer Betsoft Games has announced a partnership with Spanish operator Codere. Under the terms of the deal BetSoft’s range of graphical games will be distributed throughout Codere’s casino portfolio, which stretches across eight countries in Europe and the Americas. This will be the first time that Betsoft’s titles have been seen in a land-based environment, having previous been restricted exclusively to the online casino market. December 2013 casinoreview

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Events

MACAU / LAS VEGAS / LONDON / MINSKYXYXYXY / TOKYO

& Diary

MACAO GAMING SHOW

First Macao Gaming Show hailed a ‘great success’ The inaugural Macao Gaming Show is set to get even bigger and better next year said the chairman of the Macau Gaming Equipment Manufacturers Association who cited the first ever event as “a great success”.

lmost 9,000 visitors attended the inaugural Macao Gaming Show (MGS), which took place at the Venetian’s CotaiExpo, November 14-16. The first gaming trade show to focus specifically on Asia, MGS reported that 8,634 visitors attended the three-day show, which covered 7,887 square meters of floor space. The 102 exhibitors included a number of Macao’s top junket operators, which account for around 50 per cent of Macao’s VIP gaming revenue, as well as gaming manufacturers, casino operators and parimutuels. “The inaugural Macao Gaming Show proved to be a great success,” said Jay Chun, chairman of the Macau Gaming Equipment Manufacturers Association (MGEMA), organisers of MGS. “The presence of so

many companies who play such a big role in the gaming landscape of Macao and Asia as a whole, along with some great feedback from all who attended, confirms how important it was for the region to finally have a - to call its own. The good news is we’re only going to get bigger and better from here and we’re already looking forward to next year’s show.” Among the highlights of the show was the Slot Experience Centre where visitors were given the opportunity to test drive the latest machines and provide feedback to the slot machine manufacturers. The centre was created by MGS to help Electronic Gaming Machine (EGM) manufacturers attract useful feedback from slot players. EGM manufacturers installed their latest machines in the Slot Experience Center with players

evaluating them on theme, graphics, sound and overall playing experience. Awards were given to EGM manufacturers that received the highest number of votes from players. MGS also invited slot professionals to offer their feedbacks on these machines. Bally Titanic was voted number one for Best Music and Audio; Best Game Theme; Best Users Experience and Best Game Graphics. Another well-received feature of the show was MGSTV, a television channel dedicated to MGS, which featured interviews with gaming industry professionals, representatives from major exhibitors and speakers at the MGS conference. MGSTV also featured vox pops from the show floor, as well as coverage of the MGS Grand Prix Party and the MGS Cup evening at the Macau Jockey Club. September 2013 casinoreview

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Events

& Diary

ICE TOTALLY GAMING

Research cites ICE as world centre of gaming commerce

he organiser of ICE Totally Gaming is optimistic that its marketing campaign will help achieve the fourth consecutive year of growth for the international business-to-business gaming event. To achieve this, the 2014 show will have to exceed the 2013 audited attendance of 22,247, which was a 4.3 per cent increase on 2012, 8.6 per cent up on 2011 and a 17.8 per cent uplift on the figures for 2010. Jo Mayer, marketing director responsible for ICE, said: “We understand that we need to continue our investment in the ICE brand in order to continue to secure the loyalty of our stakeholders, the majority of whom travel to London from outside the UK. To achieve this we are investing heavily in what is our most experiential campaign to date, one which is appearing throughout international gaming media as well as in an extensive direct marketing campaign and innovative social media promotions.”

All eyes are now on ICE 2014 and the international signature on industry trends lying in wait for the year ahead. And one thing is for certain, judging by the creatives for the London outing, imagination is clearly top of the list.

isitors to ICE Totally Gaming are being encouraged to pre-plan their meetings with exhibitors to ensure that they don’t miss out on the commercial opportunities that are available at the London event. The advice comes as research conducted by Vivid Interface among exhibiting companies at the 2013 show, confirms that ICE London is the international gaming industry’s commercial capital. The Vivid Interface research showed that exhibitors held on average 52 business meetings at ICE, a figure which when applied across the 481 exhibiting companies, totals some 25,012 commercial gatherings over the duration of the exhibition. While the mean number of meetings stood at 52, the most active three

ICE on the pursuit of new records

per cent of exhibitors packed in more than 200 business meetings over the duration of the three days. Geoffrey Dixon, managing director at Vivid, said: “The research we conducted confirms that ICE is the meeting place of choice for the international gaming community in its broadest sense. It’s clear that exhibitors come to ICE intent on doing business, with our sample expecting on average 28 per cent of their meetings to result in a positive commercial outcome. The challenge for visitors is to ensure that they are able to meet with the exhibitors they want to do business with and clearly the best way to achieve that is to arrange meetings in advance of the exhibition opening rather than simply leaving it to chance on arrival.”

ICE hopes for the sweet smell of success

he marketing team behind ICE Totally Gaming has deployed a new tactic as part of its campaign in support of the 2014 show. Having commissioned a brand scent, which is being used both in the lead-up to and during the event, ICE Totally Gaming is sending postcards immersed in the smell to engage with its stakeholders as part of the event’s direct mail campaign. Christopher Pratt, managing director at the aroma’s creator, Scent Air UK, said that Clarion had a strong idea of its brand

values and identity when working to develop a fragrance that not only represents the brand but can also be associated with the event. ICE Totally Gaming February 4-6, 2014 ExCel, London UK www.totallygaming.com

RUSSIAN GAMING WEEK

Russian Gaming Week makes confident stand in Minsk As November drew to a close Russian Gaming Week came to the city of Minsk, Belarus for the first time.

round 1500 industry professionals visited the show, which took place from 27-28 November, 2013, to sample the opportunities afforded by the Russian gaming industry. The thirty exhibitors began the show with a tour of Minsk’s gambling highlights, which included a visit to the largest gaming and entertainment venue in Minsk, Belaja Veja. Companies from a broad range of gaming sectors were in attendance,

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including manufacturers DLV, Belatra and Amatic, who each displayed a wide range of slot machines. The Belatra booth was particularly popular, thanks to an appearance from the new BMW F15 X5 and a special promotion the company was running throughout the show. Attendees competed to win a discount coupon by obtaining high scores on Belatra’s interactive machines. Italian manufacturers Emmegierre garnered attention with a range of

ergonomic furniture, as did CMS’s WND roulette table, which boasts the thinnest display of its kind anywhere in the world. The Russian Gaming Week conference took place alongside the expo and featured input from industry experts such as Athanasios-Thanos Marinos, CEO of European Betting and Gaming Consultants and Lavrentiy Gubin, PR director for the Storm International casino network.

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ICE 2014: London expects

ICE TOTALLY GAMING: “THE RESEARCH WE CONDUCTED CONFIRMS THAT ICE IS THE MEETING PLACE OF CHOICE FOR THE INTERNATIONAL GAMING COMMUNITY IN ITS BROADEST SENSE.”

| DIARY

JAPAN GAMING CONGRESS

Clarion announces details of inaugural Japan Gaming Congress Japan remains a crown jewel that everyone wants to get their hands on. In a swift move, Clarion Events has stepped up to the plate with a new event aimed at delivering a menu of possible opportunities for the new market. ollowing the submission of a bill to allow casinos in Japan, Clarion Events has announced details of the first Japan Gaming Congress (JgC), scheduled to be held in Tokyo from May 14-16, 2014 and featuring key note speaker Michael Leven, president and chief operating officer of Las Vegas Sands. The event will be the first opportunity for the main stakeholders and government officials to discuss the optimal regulatory and investment models to develop casino resorts in the country. Kate Chambers, portfolio director at Clarion Events, said: “Casino advocates have been waiting 10 years for a law to bring resort-scale gambling to the world’s third largest economy. The decision by Japanese lawmakers to submit a bill to the DIET aimed at legalising casino gambling in the country is viewed by key stakeholders as a significant step forward and

14-17 IMA 2014, Exhibition Centre, Dusseldorf, Germany www.ima-messe.com 21-23 EAG London 2014 ExCeL London

FEBRUARY 2014 4-6 ICE Totally Gaming ExCeL, London www.icetotallygaming.com

one which is expected to have an overarching positive impact on the whole economy. “With the DIET likely to vote on the bill in Q2 2014, the congress will offer a unique opportunity for delegates to join key government officials, operators and legal experts as they provide first-hand experiences on the main points of the proposed regulatory frameworks, which will help in planning entry strategy into the market accordingly. We are expecting a high level of interest as Japan is a much sought after market for the gambling community,” continued Chambers. The congress will focus on key issues such as the implementation of the IR model in Japan, local and international collaboration, political landscape and legislative process, licensing procedures for gaming manufacturers and the influence of the pachinko industry on the casino market in Japan.

MARCH 2014 18 Latin America Casino Forum San Juan de Puerto Rico, Puerto Rico www.cflatam.net 19-20 Caribbean Gaming Show and Summit Puerto Rico Convention Center, Puerto Rico www.caribbeangamingshow. com Japan Gaming Congress (JgC) May 14-16, 2014 Tokyo, Japan

19-21 ENADA Spring, Rimini, Italy www.enadaprimavera.it 23-24 FADJA Corferias, Bogota, Colombia www.fadja.com

G2E 2013

G2E 2013 records five year high

early 16,250 attendees filled the halls of the Sands Expo and Convention Centre in Las Vegas during a three day period in September 2013, equating to a 3 per cent increase over the previous year. Incorporating both visitors and exhibitors into the calculations reveals that nearly 26,300 people took part in G2E 2013. “Year-after-year, G2E has proven to be the leading trade show and conference event for

Casino Review is the premier b2b publication for the international casino and gaming industry. With a combined print and digital circulation in excess of 14,000 per month, Casino Review has become the first choice read of casino operators, legislators and senior casino executives. Sign up for your free digital version at www.casinoreviewonline.com corporation ltd

GBmedia

25-27 FER-Interazar 2014, Spain www.ferinterazar.c

gaming professionals,” said Greg Topalian, senior vice president at Reed Exhibitions who organised the event alongside the American Gaming Association. “The growth in attendance and exhibits, and the success of our newest offerings such as the Emerging Leaders Program, prove that G2E is a one-ofa-kind-event providing innovative programming that tracks industry trends and implements consumer insights.” G2E also sported its largest show floor since 2008, with more than 255 companies occupying 285,000 square feet of exhibit hall space, amounting to an increase of almost eight when compared with 2012. The next G2E is scheduled for 29 September - 2 October, 2014 at the Sands in Las Vegas.

The latest edition of the G2E was the most well attended since 2008 according to independent statistics gathered by Exhibit Surveys.

Published by:

JANUARY

EDITORIAL 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, Hugh Sorrill ADVERTISING Neil Judson Email: njudson@gbmedia.eu

Tel: +44 (0)1204 396 397 Fax: +44 (0)1204 392 748 PRODUCTION Ad Production: Dave Roderick Email: gdk@sjc.co.uk Editorial Design: Gina Lloyd Email: gl@sjc.co.uk Editorial & Production Office: 20 New Road, Brighton BN1 1UF, UK Tel: +44 (0)1273 699 900 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

APRIL 2014 6-8 Southern Gaming Summit and Bingo World Mississippi Coast Coliseum and Convention Center, US www.sgsummit.com

MAY 2014 7-8 SAGSE Central America and Caribbean El Panama Hotel, Panama www.sagsecc.com 11-14 Indian Gaming 2014 San Diego Convention Center, US www.indiangaming.org

YXYXYXY

Opinions expressed in this publication should not be regarded as the official view of GB Media Corporation Ltd, except where stated. Views, opinions and recommendations contained in this publication are put forward for consideration only. No action should be taken in reliance upon any such views, opinions or recommendations. Neither GB Media Corporation Ltd nor contributors accept any responsibility for any loss occasioned to any person howsoever caused or arising as a result of or in consequence of action taken or refrained from in realiance on the contents of this publication.

Notes for contributors The Editorial Board welcomes the submission of articles for consideration by the editor with a view to publication. Articles submitted will not be returned and accordingly contributors making submissions should retain copies. Submission of an article will be held to imply that the article contains original unpublished work which GB Media Corporation Ltd may lawfully publish. All submissions are made at the owner’s risk. © GB Media Corporation Ltd 2013

Publisher: John Sullivan Email: jsullivan@gbmedia.eu

All rights strictly reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means without the prior written permission is given, full acknowledgement of author, publisher and source must be given.

December 2013 casinoreview

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