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WWW.CASINOREVIEW-ONLINE.COM • MARCH 2014 • EDITION 137

ICE TOTALLY GAMING

News

Records tumble in London

GENTING JOIN IR PARTY IN SINGAPORE

ICE REPORT 28-47

Asia & Oceania News 12

North America A TALE OF TWO CITIES: NAVAJO EXPANSION THWARTED WHILST NY GATHERS PACE 18

THE BUSINESS NEWSPAPER FOR THE GLOBAL CASINO INDUSTRY

At the recent IRG academy meeting, six of the world’s leading casino operators reiterated the massive potential boost the Integrated Resorts Promotion Act could bring to Japan’s tourism industry. Akiyoshi Tsuruoka of GCM-News reports.

JAPAN

Japanese regulatory framework moves a step closer

JAPAN

he Japan Academy of Integrated & Gaming Studies (IRG) held its 11th general academy meeting at DaiIchi Hotel Tokyo on February 25, with the investment forum drawing the unprecedented attention of industry observers and six of the world’s leading casino operators. The meeting was the IRG’s first since Japan’s Integrated Resorts (IR) Promotion Act was introduced to the Diet at the end of last year. Providing the keynote address at the conference, IRG vice chairman Toru Mihara said: “Amid introduction of the Act last year, which is expected to be

enacted during the current Diet session, many people are joining this meeting. I would like to make this meeting fruitful by exchanging opinions on various future issues, which are of some help for the attendees.” Video messages were delivered to delegates from the heads of various local governments interested in IR development, including Ichiro Matsui, Governor of Osaka Prefecture and Harumi Takahashi, Governor of Hokkaido. Governor Matsui said he was hoping the early enactment of IR-related acts, while Governor Takahashi

said that she believed the IR would contribute to Japan in becoming a tourism-oriented country. She added that, while she was now conducting various studies within the cities of Otaru, Kushiro and Tomakomai, she would like the government to consider spreading the positive effects of integrated resorts to ever corner of the country. Representatives of six major global casino operators – Melco Crown, MGM Resorts, Las Vegas Sands, Wynn Resorts, Caesars Entertainment and Genting – were invited by the IRG to give presentations at the forum. Along with dis-

cussing proposals on taxation, all of the companies reiterated the massive potential boost the IR legislation could bring to Japan’s tourism industry. Finally, a discussion with Diet members and others was held. Hiroyuki Hosoda, representing the Diet Members Alliance, explained a rule of discussion procedures in which each fraction of the ruling party and the opposition party would approve or deny a bill supplementing with the existence of free voting system as an exception, and emphasised the enactment of the IR Promotion Bill during the current Diet session. He

LOCATION, LOCATION, LOCATION n February 5, the first Establishment Preparatory Committee of the IR Promotion Council, which will provide policy proposals on IR matters, was established. Influential individuals and business groups across the country were listed as its founders, and 35 prefectures and 19 cities designated by ordinance among local governments participated as observers. Yet while Osaka and Hokkaido are attracting a great deal of attention as strong candidates for integrated resort sites, various other local governments are interested in the IR. It is anticipated that IR Promotion Council will be established on a full scale in June or July as a future roadmap.

guaranteed that biddings would be open to international enterprises. Discussing both local area and metropolitan area casinos, Takeshi Iwaya, who serves a chief secretary of Diet Members Alliance, mentioned from last year, said: “The IR Promotion Act has no definition of such casinos, but stipulates local governments’ independence. The materials indicating a basic concept of the Act defines the local area casinos as the IR with a size appropriate for a concerned area.” He clarified his posture to work on the government in accordance with such basic concept.

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

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News World

INTEGRATED RESORT

Low win rate at VIP tables denies growth in Singapore

The rapid growth of the two model Integrated Resorts in Singapore paused in 2013. The big numbers are all, p the function of a highly volatile but concentrated market, according to one of the operators.

T SINGAPORE

he casinos at the two Integrated Resorts in Singapore drew in a combined gross gaming revenue of US$4.08bn (E2.97bn) in 2013, a fall of about 1.4 per cent on 2012. On the face of it, the decline in revenues was entirely due to lower activity at Resorts World Sentosa, where GGR of US$1.72bn (E1.25bn) in 2013 was eight per cent lower than a year earlier. By contrast, Las Vegas Sands saw its casino revenues rise four per cent to US$2.36bn (E1.72bn). Non-gaming revenues at RW Sentosa were up by 19 per cent to S$660.4 (US$521.9m, E380.7m) partially offsetting the falls elsewhere for net revenues for the year of S$2.85bn (US$2.25bn, E1.64bn). Genting Singapore reported

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Adjusted EBITDA of S$1.16bn (US$916.7m, E668.7m). The annual figures come after a fourth quarter where revenues failed to match up to either the same quarter a year earlier or immediately preceding. What’s really at issue are lower win percentages, which have affected both casinos but especially RW Sentosa. The company said there was better news away from the casino floor: “The nongaming segments continued to register health growth with strong visitation. Our attractions enjoyed a daily average visitation exceeding 20,000 while the hotels achieved an occupancy rate of 92 per cent.” Genting continued: “For 2014, whilst we are generally

positive on our business, we are mindful of the overall Singapore tourism outlook. We will increase out marketing spending to drive foreign visitation growth, and this will potentially dilute our yield. Our net income will be challenged by the tight labour market, coupled with rising costs. While we are working on improving productivity in some of our business segments, the labour-intensive nature of our business only allows for limited gains from any productivity measures that we undertake.” Over at Marina Bay Sands, while the headline figures were a lot better, the casino there has also been struggling with win percentages at the high roller tables, so much so that senior members of the company have

been to investigate whether the business model is still up to snuff. The expected win percentage range on rolling chip volume is 2.7 per cent to 3 per cent: the mean percentage achieved in 2013 was 2.45 per cent - with the fourth quarter coming in at a very low 1.92 per cent. Indeed, MBS has not hit or exceeded its target win percentage since the first quarter of 2012. That means that despite an increase in rolling chip volume in 2013 of 14.3 per cent to a shade over $60bn (E43.9bn), neither revenues nor EBITDA have kept pace. Rob Goldstein, COO of global operations, told investors recently: “We’re very disappointed we can’t seem to ‘play lucky’ for the last year and half or so. We have the best people on the

ground looking at it and we have total confidence we will return to a 2.7, 3.0 range... We are maintaining our $60bn or so year roll. We want to hope we get our win rate back to a good place. We want to focus on margins to grow a better yield, but really the growth is going to be in non-Rolling segments for us. The new opportunity to make money in Singapore resides in the non-Singaporean based premium, custom both slot and table.” He added: “We hired a number of experts to look at our mix of business and they [told us] what we already believe: that structurally it’s sound... I found it very frustrating. I sat for a four hour lecture from three very smart people.” Some of the possible reasons for the trend, he said,

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YXYXYXY CANADA / JAPAN / SINGAPORE

ICR NEWS SECTIONS: WORLD 2-3 EUROPE 4-11 ASIA & OCEANIA 12-15 AFRICA & MIDDLE EAST 16-17 NORTH AMERICA 18-21 SOUTH & CENTRAL AMERICA 22-23 COMMENT & ANALYSIS 24-25 NEW LAUNCH

ANALYSIS or the best part of two years the win rates at the top baccarat tables in Singapore have been well below expectations: the way that high rollers there play baccarat, the amount they gamble and the fact that there are comparatively few of them compared to the much, much larger market of Macau, create high volatility - and that can mean extended runs of good luck or bad luck for both player and operator. This long period of bad luck for the Singaporean casinos would be a problem only if the volume were too low or the operators short of cash. Neither situation is in play here. The rolling chip volume for Marina Bay Sands alone was an impressive $60bn, and that powerfully up from the previous year. VIP gaming is not the whole story however. Underneath it all, and growing rapidly and healthily, is the mass market - or rather premium mass market - business, which is providing a solid foundation for the businesses in the future.

The Marina Bay Sands has not been earning what it expects from VIPs

Century Casinos receives Downs development approval CANADA

nternational casino operator Century Casinos is set to begin construction on the new Century Downs Racetrack and Casino project within the next few weeks after receiving a development permit from Rocky View County. The project, located on the outskirts of Calgary, had already received a racing licence from Horse Racing Alberta and approval from the Alberta Gaming and Liquor Commission, while final consent is due upon final inspection of the finished venue as per local law. “We are excited about

ates casinos in Canada, the United States, Poland and Aruba as well as on 12 cruise ships and is due to release its fourth quarter results on March 31. The Colorado firm stated that

these will be “behind expectations” due to higher corporate expenses associated with new project developments and lowered regional gaming revenues across North America.

NEW MARKET

Adelson circles Japanese gaming market

bers are all, perhaps, but so is

were that volumes in Singapore are not as high as in Macau, by way of example, and that combined with some players betting perhaps $1m per hand creates volatility. “Frustrating but valid,” said Goldstein. However, he added, the lower margins may also have something to do with play strategies. “Pairs and tie betting [are what] drives the margin on the baccarat business. Some of our better customers don’t bet pairs and ties, we wish they would. But they are betting it less and that’s a wise gambling choice and so that’s impacting it somewhat... There’s nothing structurally wrong. We have to keep our head down, keep bringing in the business, be margin-focused and watch the return go better.”

the go-ahead received from Rocky View County and are grateful for the tremendous support the project continues to receive from local and provincial communities and regulatory authorities,” read a statement from co-chief executive officers Erwin Haitzmann and Peter Hoetzinger. Located less than a mile north of the Calgary city limits and 4.5miles from Calgary International Airport, Century Downs Racetrack and Casino will additionally benefit from its proximity to the Queen Elizabeth II Highway and the CrossIron Mills shopping mall. Century Casinos oper-

JAPAN

heldon Adelson, chief executive officer of Las Vegas Sands Corporation (LVS), has revealed that his firm is prepared to spend “whatever it takes” to establish a casino in one of the world’s largest untapped gaming markets, Japan. December 2013 saw a group of lawmakers submit a measure to parliament that could see the Asian nation legalise casino gambling as early as 2018, and LVS would be a strong candidate for a licence due in part to the success of its Marina Bay Sands resort in Singapore, which served as a model for the pro-gaming group. “Would I put in $10bn (E7.3bn)? Yes,” said 80year-old Adelson. “Would I rather do it at $7bn (E5.1bn)? Yes.” Rival operator MGM

Resorts International is also thought to be interested in entering a market that could post total annual revenues as high as $40bn (E28.9bn) as are Malaysia’s Genting and Macau venture, Melco Crown Entertainment. Local interest for one of the dozen licences reportedly set to be made available comes from slot machine and game manufacturers Sega Sammy Holdings

and Konami Corporation alongside broadcaster Fuji Media Holdings. Speaking at an investment seminar in Tokyo, Adelson stated that “he wouldn’t be that happy” at taking on Japanese companies as equity partners but did not completely rule out the prospect. “These people can’t keep up but I’m not ruling it out,” said the American, touting Las Vegas Sands’

industry-leading market capitalisation of $66bn (E47.7bn). “I’m keeping my mind open to see whether or not a fair and reasonable partnership deal can be worked out.” The two-step legislation process could see the issue debated in the Japanese National Diet as early as May with operations beginning well in advance of the 2020 Summer Olympics in Tokyo.

March 2014 casinoreview

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News Europe

CASINO DEVELOPMENT

Axel Jung (l) and Günter Merckle show Claudia Bieling their designs

Merkur Spielbanken has persuaded the two most soughtafter casino architects in Germany to transform a former car dealership west of Leipzig into the region’s leading casino.

GERMANY

Renowned architects start work in Günthersdorf

erkur Spielbanken, which acquired the concession to operate casinos in the central German state of Saxony-Anhalt, has announced its plans for a new casino in Günthersdorf close to the border with Saxony and just 15km from the centre of Leipzig. The new Merkur Spielbank Leuna will be located in the building of a former car dealership just off the A9 motorway and adjacent to an IKEA superstore. The venue, which is being remodelled by architects Axel Jung and Günter Merckle, will offer around 1,900sq m of floor space,

4 | casinoreview March 2014

with around 200 parking spaces available for visitors and staff around the building. Claudia Bieling, who will head the casino in Günthersdorf, said: “We are proud that we have been able to win two architects for the Leuna location, Axel Jung and Günter Merckle, who have planned the most successful and modern casinos in Germany. This again reflects the high standards we are bringing to this project.” Bieling was the first - and highly successful - director of WestSpiel’s market-leading Duisburg Casino,

which was also designed by Jung and Merckle, as were locations in Wiesbaden, Berlin, Bremen and Leipzig, as well as others in Baden and Davos in Switzerland and in Malta. Spielbank Leuna, named for the town district in which it is located, will employ around 50 people when it opens, probably in the autumn. “The new casino will offer guests a wide range of entertainment in a stylish atmosphere that will enrich the region,” said Bieling. The Günthersdorf location, essentially on the out-

skirts of Leipzig, has attracted criticism from the head of the casino operator in Saxony, Siegfried Schenek. The state-owned company has three venues, in central Leipzig, Dresden and Chemnitz, all offering electronic gaming and no live tables. The live gaming available at Spielbank Leuna is likely to provide significant competition for the Leipzig market. Schenek said: “They certainly haven’t gone to Günthersdorf because Günthersdorf offers such potential: it has been chosen in order to capitalise

on the potential of Leipzig. This will mean competition - and was certainly intended to be so by Saxony-Anhalt.” Sächsische Spielbanken last year saw its revenues rise ten per cent last year to around E9m. The new casino will be just one of two that Merkur Spielbanken SachsenAnhalt - a joint venture between the Gauselmann Group and Stadtcasino Baden - will operate in the state. The company won the concession last May, two years after the previous operator belonging to the Sybil Group went bank-

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EC / FINLAND / FRANCE / GERMANY / ITALY / NETHERLANDS / REPUBLIC OF IRELAND / SPAIN / SWEDEN / UNITED YXYXYXY KINGDOM ICE Totally Gaming 2014

ICE TOTALLY GAMING “ICE CERTAINLY LIVED UP TO ITS BILLING AS THE MOST SENSATIONAL GAMING EVENT IN THE WORLD.”

ANALYSIS

he casino market in eastern Germany is not an easy one: there are several bright spots growing economic strength but it is in no way universal and that means that the potential pool of likely players is already much smaller. That’s one way of looking at it. The other is that if the casino offering is dull, people won’t come. That is pretty much the strategy in Saxony, where three fairly small electronic casinos owned by the state meet a perceived demand with no great fuss or fanfare. Over the border in Saxony-Anhalt, where the privatisation of the casinos proceeded disastrously resulting in their closure, the new operator has a mind to offer something a bit more exciting and close to one of those economic bright spots, Leipzig. With the financial backing it has from one of Germany’s largest leisure companies, and the operational expertise from Switzerland, it is a project with every chance of success. It may also demonstrate what happens in jurisdictions that want to control casino gambling and those that want simply to regulate it. There is a qualitative difference.

t rupt forcing the then three venues in Magdeburg, Halle and Wernigerode to close. Merkur Spielbanken announced in January that of the former locations only Magdeburg would get a new casino. This is Gauselmann’s first foray into full casino operations - its main business is the operation of gaming arcades and electronic casinos around the Germany and abroad. It has been a powerful voice lobbying for the interests of the arcade sector, which have often been at variance with those of casinos operators.

LEGISLATION

Ireland’s gaming bill set to bolster market operations Irish hopes are high following the decision, finally, for legislative change towards a modern, coherent and business-friendly framework. After years of lows, and even lower, the Irish gambling sector can soon look forward to some positive days ahead.

IRELAND

hile Ireland’s spluttering economy recovery continues to hinder gaming operations across the country, the framework document for the Gambling Control Bill is looking “promising”, according to John Roche, chairman of the Irish Amusement Industry Trade Association (IATA). “The Irish economic recovery is an extremely slow process for those of us at street level,” Roche told International Casino Review. “We have seen signs of growth in the export sector over the last few years, but the benefits of this are very limited. Sectors such as ours have suffered dramatically in this downturn, and we hope the government will take into consideration when deciding excise duty rates under the new legislation. In the medium to longer term the worst is over, and I would be extremely confident of a gradual uplift over the next year or so.” Roche added: “The framework document for the Gambling Control Bill

looks promising. We have had meetings with the Department of Justice and have appeared before an Oireachtas Committee to press the case for our sector. The important thing now is for IATA to ensure that our essential needs are recognised. “IATA believes that the Gaming Act should be nationwide - rather than the current patchwork situation - and that stakes and prizes be sufficient to allow the viable operation of our businesses in relation to our competitors in the field. Also, that gaming machines be confined to arcades, with a limited number of highstake machines available in casinos. If other outlets are to be allowed machines, they should all be low stake low payout machines. “The prospect of a limited number of properly regulated casinos is also welcomed, as it will replace the current totally unregulated position where 70 or so establishments, calling themselves private members clubs, exist,” Roche said.

NEWS EUROPE ROUND-UP ritish bookmaker Ladbrokes has seen its profits after tax for 2013 drop by almost 65 per cent yearon-year to $112.1m (E81.2m), due primarily to costs associated with improving its online business. The Harrow-based firm reported that total annual revenues improved by only 3.1 per cent year-on-year to $1.85bn (E1.34bn), while revenues from its UK retail unit plummeted nearly 23 per cent to $224.2m (E162.4m). Ladbrokes detailed full-year exceptional costs of $86.4m (E62.6m), which were largely attributable to transitioning to new products and platforms, business restructuring and shop license impairment charges. Conversely, online gaming software development firm Playtech has reported a 16 per cent rise in annual revenues to $506.7m (E367.2m) thanks to its focus on deepening licensee relationships, creating new content, providing customers with

cutting-edge products and services and improving its web and mobile offerings. The Isle of Man-based firm, which acquired leading casino systems group Intelligent Gaming in 2011, published 2013 adjusted earnings before interest, tax, depreciation and amortisation excluding profits from the sale of its William Hill Online joint venture of $219.8m (E159.4m), which was a boost of 17 per cent year-on-year, while its adjusted net profit increased by 26 per cent to $204.6 (E148.3m) and almost 315 per cent to $674.5m (E488.8m) including this transaction. In Spain, meanwhile, the Gran Casino Cartagena has filed for bankruptcy protection following continuous declines in visitor numbers and revenues since opening eight years ago. The Murcian venue is owned by Grupo Gran Madrid, which also operates casinos in Torrelodones and Malaga, and has seen turnover fall by over 63 per cent since 2009 to only $3.1m (E2.3m) in 2011. March 2014 casinoreview

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News Europe

UK FOBTS fight back 25

TAKING RESPONSIBILTY: “WE DO NOT WANT PROBLEM GAMBLERS PLAYING ON ANY OF OUR MACHINES AND THE NEW MEASURES ARE A POSITIVE FIRST STEP” DEVELOPMENT

FINANCIAL

RAY breaks ground on second casino

Svenska Spel posts record profits SWEDEN

A new casino development in the Finnish border town of Vaalimaa has been designed to attract Russian players. FINLAND

inland’s state-run gaming operator, Raha-Automaattiyhdistys (RAY), has broken ground on its second casino near the country’s south-eastern border, with the new venue scheduled to open by October next year. Located in the town of Vaalimaa near Virolahti, just off the E18 motorway, the 100,000sq.m development is being designed to appeal principally to visitors from Russia and will be joined by a Best Western

hotel and an outlet store offering products from a range of fashion companies. RAY opened its first casino in Helsinki 10 years ago. This latest project, which is expected to cost around $96m (E70m), is being funded by the Russian-led Vaalimaa Shopping Centre Group. According to the Finnish Tourist Board, the finished development is expecting to welcome up to 500,000 visitors a year while providing employment for 400 to 600 locals - 100 of these directly by RAY. “It is too early to say if

casino operation will benefit the municipality of Virolahti, [as this will] depend on business investments, tourism, customs and visa policies between Finland and Russia,” said Johanna J a r v i n e n - Ta s s o p o u l o s from Finalnd’s National Institute for Health and Welfare. “From a regulatory point of view, border casinos are interesting cases especially when gambling operation is restricted or prohibited on the other side of the border. The Finnish public discussion highlighted by the press in 2012 seemed to react in a

quite positive way to the opening of a casino in the Vaalimaa area. Russia has many neighbours that already welcome Russian gamblers to their premises. However, the question that arises is: will the European Union tolerate cross-border gambling in the case of a disagreement on problem gambling between two member countries or one member country and a non-member country?” The development initially had a December 2014 opening date, but delays arose when Italian retail and management firm

Arcoretail requested that plans for the façade and interior design of the outlet store be revised. “We added some luxury,” said Eero Nuutinen from Vaalimaa Shopping Center. The casino portion of the development, which will be 200km from St Petersburg and 800km from Moscow, has the option of offering 500 slot machines alongside 90 table games. However, RAY has revealed that the new venue is due to be around half the size of its Helsinki casino, which boasts 300 slot machines and 20 table games.

ONLINE

Spain publishes online slot proposals SPAIN

he Direccion General de Ordenacion del Juego (DGOJ) regulator in Spain has drafted a pair of Ministerial Orders that would legalise online slots alongside exchange betting, with tax rates set at between five and 12 per cent of net income. As Casino Review went to press, the DGOJ was sending these proposals to regional authorities before publishing drafts on its website and soliciting comments from the industry and public. The regulator may then amend the plans in advance of submitting them to tax authorities and issuing its final suggestions. The DGOJ has proposed creating a new category for the regulation of online exchange wagering while slots would be positioned in the “other games” licence category. Numerous reports suggest that the draft documents also suggest launching a new tender that

6 | casinoreview March 2014

Alejandro Landaluce

could see more operators to enter the market. Should the process run smoothly and the drafts approved by government, operators are to be given a six-month preparatory period in order to ensure that everyone

launches their games at the same time. The proposals have drawn criticism from the Spanish Gaming Business Council (CEJUEGO), which is a group consisting of several land-based operators including Grupo R Franco, Grupo Acrismatic, Cirsa, CONEI Corporation, Codere, EGASA and Grupo Diaz Carbajosa. The organisation claimed that introducing online slots and exchange wagering would be “enormously damaging to the gaming industry as a whole” and that it intends to oppose the draft legislation. “The approval of the law would create an insurmountable level of unfair competition for land-based gaming companies, which are heavily regulated and controlled by the autonomous communities to ensure a clean and safe environment for responsible gamblers,” said Alejandro Landaluce, director general for CEJUEGO. “The proposed regulation is extremely lax with no limits on gambling or rewards or advertising and promotions.”

et profits for Sweden’s state-controlled gaming operator Svenska Spel increased by 2.5 per cent year-on-year to reach a record $806.4m (E586.8m) in 2013. The $19.7m (E14.3m) improvement in profits after interest and tax came despite a 0.9 per cent year-on-year decline in net gaming revenues to $1.4bn (E1.1bn) while the figure for the final quarter fell by 4.1 per cent when compared with the same period in 2012 to $397.6m (E289.3m) For the full-year, Svenska Spel’s operating profit rose by 2.3 per cent to $796,731 (E579,718) off of a margin of 22.6 percent, which was slightly higher than 2012’s 22 per cent. “We have shown our best operating profit ever and our operating margin has improved primarily due to a change in product mix and lower costs,” said Svenska Spel president Lennart Kall. Svenska Spel reported that its operating profit for the traditionally slower fourth quarter had decreased by 2.5 per cent year-on-year to $214,861 (E156,364) off of a slightly lowered margin of 22.8 per cent while overall profits hit $217,853 (E158,546), down 2.4 per cent on 2012.

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News Europe

Enada Spring 62

SPRING TIME IN ITALY: ENADA SPRING TAKES PLACE SOON WITH A RANGE OF THE WORLD’S MOST INFLUENTIAL COMPANIES SHOWING THEIR WARES TO A SOUTHERN EUROPEAN AUDIENCE.

REGULATORS

European Commission speaks out at ICE EC representative Harrie Temmink (pictured, left) took to the stage during ICE’s International Casino Conference to detail plans for increased regulator co-operation. EU

orming part of the overall programme of talks from some of the major players in the gaming world, the International Casino Conference kicked off four days of panels and seminars at the 2014 edition of ICE Totally Gaming. Among the speakers at this event was Harrie Temmink, deputy head of unit and director general international market and serv-

ices at the European Commission. The EC plays a vital role in organising regulators across the EU’s many member states and has recently been pushing for increased co-operation among international lawmakers. Temmink was on hand at ICE to answer questions from Philippe Vlaemminck, a partner at Belgian law firm Altius. Much of their discussion focused on the EC’s action plan, which details its goals and methods over the coming years. “There are no

surprises anymore in the EU about what the policies of the commission will be,” said Temmink, “thanks to the action plan.” Temmink also contended that, thanks to the release of this information, there is overall support within the EU for the commission’s work. He did, however, highlight a charge that has been levelled against the EC in recent years, that they should do more to tackle unlicensed online operators. Temmink argued that

it was up to regulators to deal with illegal businesses on their own terms, in their own jurisdiction. Temmink was asked to lay out the stages of the action plan, which deal primarily with online gambling, but contain ramifications which effect the entire European market. Chief among them was a desire to increase cooperation between regulators from the EU’s twenty eight member states. The EC recently created an expert group of lawmakers, which

meets every two to three months, to advise the commission on new initiatives. For the past few months, these regulators have been debating the contents of a charter, which will set out guidelines for gaming regulation that every country will endeavour to follow. Although Temmink was positive about the charter’s prospects, a later panel including representatives from Denmark, Italy and the Netherlands revealed that fractious debate has so far producing little in the

way of progress. Among the EC’s other public commitments was a series of measures designed to curb fraud and money laundering. Temmink outlined the commission’s view that the current safeguards should be extended to all venues that operate games of chance and not just casinos. Not only will this help to root out fraud on a wider scale, but also create a fairer market which does not place an uneven burden on certain types of business.

LICENCES

French casinos ordered to reapply for licences FRANCE

pair of casinos previously authorised for the Var department in southeastern France have been told that they must reapply for licences after market leader Groupe Partouche argued that the new businesses would hurt its existing nearby operation. Operators JOA Groupe and Groupe Viking Casinos were granted permission a year ago to open casinos in the seaside areas of La Seyne-surMer and Sanary-sur-Mer and had already begun construction. However, the Administrative Court of Toulon recently ruled in favour of Partouche that

the new sites must have their licences reauthorised because they had not completed the necessary impact studies. Var is currently home to seven casinos and Partouche, which operates a casino a few miles up the

8 | casinoreview March 2014

coast from the JOA and Viking sites in the town of Bandol, argued successfully that the new venues would see its business drop by up to one-third. It commissioned an independent report that recommended cancelling

the planned projects due to the “cumulative impact” they would have on the area’s existing complex. “We did not attack these casino projects just because they were our competitors,” said

Fabrice Paire, chief executive officer for Partouche, which operates 42 casinos throughout France. “The legislation provides that any opening of a casino must be decided in the light of an impact study that verifies that it does not jeopardise an institution located within a radius of 80km. That provision was not taken into account by the Minister of the Interior at the time, Claude Gueant, before making a decision that would destroy the local equilibrium. “Our impact study from an independent body showed that gross gaming in Bandol would be eroded by more than 30 per cent with the

arrival of its competitors and that’s what happened. This report been brought to the attention of the Minister, but in vain. Nobody worries about the consequences in Bandol where the casino has lost a third of its business with the opening of the casino Sablettes and where a restructuring plan was implemented to stay in operation.” JOA, which opened a temporary casino after receiving licensing approval, revealed that it has now stopped construction of the permanent site in advance of reapplying for authorisation while Viking plans to “wait for the details of the judgment” before proceeding.

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News Europe

Bitcoin debate 60

BITCOIN SOLUTION?: “USING BITCOIN CURRENCY ALLOWS OPERATORS TO BRING THE TRANSPARENCY OF GAMING TO A NEW LEVEL,” STATED IVAN MONTIK, SOFTSWISS

LICENCE PROPOSALS

LEGISLATION

Progress for Wolverhampton casino proposals

Italian Senate passes gambling advertising ban legislation

UNITED KNIGDOM

wo applicants have made it through to the final stages of a process that will see a new casino opened in Wolverhampton, UK. Casino 36 has submitted plans to open The Rubicon Casino venue near the city centre on Temple Street, while Wolverhampton Racecourse has applied for a licence to offer gambling services at its nearby Dunstall Park facility. Wolverhampton, which has a population approaching 250,000, was one of 16 local authorities given the right by parliament to independently grant a casino premise licence under the Gambling Act of 2005, and the two applicants will now await the findings of an evaluation panel

ITALY

Wolverhampton Racecourse has applied for the casino licence

regarding which proposal is best. The hopefuls are to be assessed on finance, regeneration and legal criteria by a group consisting of local officials alongside qualified and experienced professionals from the gambling industry with a final decision expected as early as June.

“I am delighted we are getting closer to awarding the casino licence and we have two strong bids to consider,” said Peter Bilson, cabinet member for economic regeneration and prosperity for Wolverhampton City Council. “As well as enhancing the leisure

offer we have here in Wolverhampton, a new development such as this will provide extra regeneration benefits to our city such as the creation of new jobs. Both applications will now be assessed over the coming months before a final decision is made later this year.”

AWARDS

Aspers crowned European Casino Operator 2014 UNITED KNIGDOM

Richard Smith receiving the award on behalf of Aspers

he UK’s Aspers Casino was named European Casino Operator of the Year 2014 at the 7th International Gaming Awards. The annual awards, con-

sidered the ‘Oscars’ of the gambling industry, were hosted at the Savoy Hotel in London. Richard Smith, general manager of Aspers Westfield Stratford City, attended the ceremony and was presented with the winning trophy.

“We are thrilled Aspers Casino has been recognised as a European Casino Operator,” Smith said. Last year, Aspers Casino won The Responsible Landbased Gaming Operator of the Year 2013 at the annual International Gaming Awards.

ONLINE

Mansion fined while Betsson buys in The Netherlands NETHERLANDS

court in The Netherlands has ordered online gaming operators Mansion Online Casino and ONISAC to pay a fine of E150,000 after losing a case brought by the Kansspelautoriteit gaming authority last year. The two had been found guilty in November of targeting the strictly controlled Dutch market via the activities of their Casino.com site but were granted a temporary injunction that has now expired but could still be appealed. “Offering online gambling without a licence in possession is prohibited in The Netherlands.,” read a statement from the Kansspelautoriteit.

10 | casinoreview March 2014

as well as an affiliate business. The Maltese operator has 209,000 registered customers and primarily targets the Dutch market via the OranjeCasino site, although the Kroon site additionally has a presence in neighbouring Belgium. “With this acquisition, Betsson gains a strategic position in The Netherlands and becomes one of the biggest players on the Dutch market, which is expected to be re-regulated during New laws opening up the Dutch online gam- 2015,” said Magnus Silfverberg, president and bling market are expected to be implemented chief executive officer for Betsson. next year, but Stockholm-based operator Bets“This would see Betsson’s total profits from son will not have to wait that long after paying locally-regulated markets exceed 25 per cent. E100m for local firm Oranje and Kroon, which The deal also gives Betsson a larger and more runs OranjeCasino.com and KroonCasino.com significant presence in continental Europe.”

espite initial opposition from members of the government, the Italian Senate has unanimously passed an amendment to a finance bill that would prohibit the advertising of real-money gambling via radio and television. Introduced by Italian Socialist Party member Riccardo Nencini, the measure is designed to clamp down on compulsive gambling and will now head back to the lower Chamber of Deputies for a third reading. Italy only has a handful of casinos but online gambling has proved very popular since it was legalised in 2006 and posted total amounts wagered of E15bn for 2012 alongside gross gambling revenues of E749m. The measure forms part of a larger bill first approved by the Chamber of Deputies in September 2013 and does not mention online advertising. Nencini, who is the son of 1960 Tour De France winner Gastone Nencini, stated that the vote was a “victory for the Italian Socialist Party” while insisting that the amendment was in line with European principles against compulsive gambling. “The government expressed itself in opposition during the debate then changed its mind and shared our arguments,” said the 54year-old. “It’s a success for the whole socialist delegation, a battle began in the Chamber of Deputies by Marco Di Lello and continued and won in the Senate. A direct shot at interest groups.”

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CR137-p12-14-Asia_Coinslot NEW 14/03/2014 10:24 Page 1

News

Asia & Oceania

IR INVESTMENT

Genting joins IR project in South Korea The latest in a series of huge investments by Genting, a new casino resort is to be developed on the South Korean holiday island of Jeju with Chinese partners and aimed squarely at the Chinese market.

M SOUTH KOREA

alaysia-based Genting has announced it intends to form a joint venture to develop and build an Integrated Resort on Jeju island to the south of the Korean peninsula. The company is to join forces with Chinese-owned Landing International Development Limited (LIDL) to build a casino, hotels, a theme park, mall and other leisure facilities on a 230heactare site in Seogwangri, on the western slopes of the Halla-san volcano that forms the island. The project is estimated to come in at around US$2.2bn (E1.6bn) and will largely target players from the major population centres of China from where there are daily flights.

12 | casinoreview March 2014

At a press conference in Hong Kong in February, Yang Zhihui, chairman of LIDL said: “Eastern and northern China is very close to Jeju island, and it’s roughly a one-hour flight, which makes so much more sense for people from Beijing, Shanghai or Qingdao to come to Jeju than going to Macau.” The casino will feature 800 gaming tables, of which 200 will be devoted to VIP play. There will be three hotels with 2,800 rooms. Construction is expected to start as soon as June this year. LIDL bought the land in Jeju last October for 136bn won (E92.9m). The 50-50 joint venture with Genting will see both companies

buy into Landing Jeju Development Corporation (LJDC). Genting will take part through an indirect wholly owned subsidiary, Happy Bay, and will buy 82.5bn won (E56.26m) of shares, as well as provide the same amount as a shareholder loan. For its part LIDL will contribute another 32.47bn won (E22.16m) through a share purchase in LJDC as well as building up the value of the shareholder loans it has already made to 82.5m won. According to Yang, the company may need to raise some of the funds in the equity markets. This is the first casino project that LIDL has embarked upon. The company is part of the Landing

Group, majority owned by Yang Zhihui, one of the largest property developers in Anhui province, the first inland province west of Shanghai and Nanjing. It was named as The Star of the Top 100 Chinese Real Estate Enterprises in 2013. The company is hoping to capitalise on the everexpanding Chinese tourism and gambling market. In 2013 around 4.3m Chinese tourists visited South Korea, an increase of 53 per cent on the previous year. For Genting, the Jeju project represents another significant investment in a period of strong expansion. The company last year bought the unfinished former Echelon project on

the Las Vegas Strip from Boyd Gaming to bring the Resorts World brand to Las Vegas for the first time: that development alone will cost the company at least US$2bn (E1.46bn) and possibly twice as much. It is also currently refurbishing its primary resort Genting Highlands in Malaysia, and building a new Resorts World casino and entertainment complex near Birmingham in the UK. Its international reach has expanded greatly over the last few years: apart from Resorts World Sentosa in Singapore, it also operates in Manila and last year took the operation of a small resort on the island of Bimini in the Bahamas.

CR137-p12-14-Asia_Coinslot NEW 14/03/2014 10:26 Page 2

AUSTRALIA / CAMBODIA / MACAU / SOUTH KOREA YXYXYXY SJM’s Grand Lisboa 55

SJM INCOME BOOST: SJM HOLDINGS LIMITED HAS SURPASSED ANALYSTS’ ESTIMATES AFTER REPORTING A 14 PER CENT YEAR-ON-YEAR INCREASE IN NET INCOME FOR 2013 TO $994M (E720.3M).

INVESTMENT

Galaxy Entertainment continues Macau investment Leading Asian operator Galaxy Entertainment took home a pair of prestigious honours from the recent International Gaming Awards in London. But away from the awards stage and back on the gaming floor, progress is very much in hand for the development of its Galaxy Macau resport. MACAU

The stunning Jeju Island is home to Korea’s tallest mountain, Halla-san, a volcano dormant for 1,000 years. It is a UNESCO Wonder of Nature site

ANALYSIS orea has become the latest Asian market to see a flurry of interest from operators, all the more since the government is considering relaxing its current extremely rigorous demands on potential investors. The country is ideally placed to take advantage of the huge northern Chinese market, being a somewhat shorter flight away than Macau, Singapore or Manila. Genting’s well-funded proposal looks set to get off the ground quickly – more quickly than the renewed attempts being made by Caesars and Universal to start projects near Incheon International Airport. The full potential of the north east Asian markets remains to be seen – especially factoring in Japan – but one thing is certain: it has reached nowhere near saturation point yet.

sia-focused hotel and casino operator Galaxy Entertainment Group is set to spend upwards of $9bn (E6.5bn) on developing the next three phases of its Galaxy Macau resort property. The Hong Kong-listed firm spent $2.12bn (E1.54bn) on the first phase of the Cotai Strip venue, which opened in 2011, and now want to open the second stage of the project in 2015 with the whole project slated for completion within three years “The current gaming industry is not like the old days,” said Galaxy Entertainment Group chairman Lui CheWoo. “We will have more nongambling components apart from casinos. For example, tourism, commerce, arts and culture, family entertainment and I will boost investment in sports as well. The second phase of Galaxy Macau will open next year while the arts and sports projects will begin at the third and fourth phase [and] will hopefully be seen within three years.” Galaxy Entertainment Group’s shares surged by an impressive 1.29 times last year to elevate the personal wealth of Che-Woo to $21bn (E15.2bn) and make him the second richest man in Hong Kong just behind utilities, real estate and telecoms entrepreneur Li Ka-Shing. Lui Che-Woo, 84-year-old former construction magnate, was recently honoured at the prestigious International Gaming Awards in Lon-

don with the Outstanding Contribution Award while Galaxy Entertainment Group bagged the Casino Operator of the Year Australia/Asia honour for a third consecutive year. “It is a great honour for Galaxy Entertainment Group and for me personally as an Asian entrepreneur to receive two awards from our esteemed international industry peers,” said CheWoo following the ceremony held at The Savoy Hotel. “[Galaxy Entertainment Group] has achieved a great deal in a relatively short timeframe since being founded in 2002 and its tremendous success stems from seamlessly combining gaming and nongaming elements under one roof to create a new, exciting and all-encompassing leisure and entertainment experience for visitors. “We are currently about halfway through the construction of Galaxy Macau phase two and will soon commence the construction of phases three and four. These awards are a great testament to the progress we have made towards our ultimate goal to be ‘globally recognised as Asia’s leading gaming and entertainment corporation’.”

Lui Che-Woo: ‘The second phase of Galaxy Macau will open next year’

ASIA ROUND UP ustralasian casino operator SkyCity Entertainment Group is hoping to beat rivals Echo Entertainment Group and Crown Resorts in winning the competitive tender to develop a new gambling and entertainment complex in Brisbane, Australia. The Auckland, New Zealand-based firm registered its interest with the Queensland State Government prior to a February 28 deadline only after its plan to build a casino and cruise ship terminal in the Gold Coast town of Bilinga ran into difficulties following the state’s Premier withdrawing his support. Echo Entertainment and Crown Resorts predicted that any new complex in Brisbane would cost at least A$896m (E652m) while SkyCity Entertainment is part way through a A$313m (E228m) refurbishment of its Adelaide casino and just began construction on a NZ$331m (E241m) convention centre in Auckland. All of this follows news that the SkyCity’s half-year net profits slumped by eight per cent year-on-year to NZ$61.1m (E44.8m) due to unfavourable currency fluctuations, a disruptive refurbishment of the Auckland venue and weakness in its high-roller business towards the end of the year. Normalised revenues, which does not count fluctuations associated with VIP gamblers, fell 5.8 per cent

year-on-year to NZ$386m (E281m) while earnings before interest, tax, depreciation and amortisation decreased six per cent to NZ$118.8m (E86.5m). Elsewhere in the region, the New Zealand Department of Internal Affairs has drawn criticism for entering into a $35m (E25.4m) contract that will see Intralot NZ develop monitoring systems to track casino cash traffic. Critics have pointed to several corruption and bribery allegations levied at Socrates Kokkalis, the chairman for parent firm Intralot SA, while citing rumours that he was once a Stasi agent for the East German government. Further north, the island of Saipan is once again looking at the possibility of legalised casino gaming as a way to attract tourists and raise additional tax revenues. The Commonwealth of the Northern Mariana Islands Senate is considering whether to resurrect a House bill that it shelved in November in order to help restore off a deferred 25 per cent pension cut brought about by the fund declaring bankruptcy in 2012. Finally, controversy has erupted in India following the sale of the offshore Casino Carnival casino in the state of Goa by VM Salgaocar and Bro Pvt to Pride Group. Several civil groups and even members of the local ruling Bharatiya Janata Party have argued that casino licences should not be transferrable while the new owners of the ship-based casino are vowing to keep the venue open nonetheless. March 2014 casinoreview

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CR137-p12-14-Asia_Coinslot NEW 14/03/2014 10:27 Page 3

News

Asia & Oceania

Wizards of Oz 25

AUSSIE RULES: A REPORT BY THE ECONOMIST REVEALS THAT AUSTRALIANS GAMBLE MORE THAN ANY OTHER NATION ON EARTH, SPENDING ON AVERAGE AROUND $1,144 (E836) EACH YEAR.

DESTINATION RESORT

OPENING

Macau’s latest destination resort is expected to open in 2017, and speeding the process along, SJM has already started laying the foundations for another Cotai strip success story.

Adelaide Casino unveils high-roller Platinum Room AUSTRALIA

SJM breaks ground on Lisboa Palace development MACAU

asino operator Sociedade de Jogos de Macau (SJM) SA has officially broke ground on its new Lisboa Palace development for the Cotai Strip in Macau with the destination resort scheduled to open for business in 2017. Set to cost upwards of $3.86bn (E2.81bn) and located next to the Macau East Asian Games Dome indoor sports arena, Lisboa Palace will offer 700 gaming tables and over 1,200 slots across a 27,000square-metre gaming floor. There will also be a full range of non-gaming facilities with the new development’s fashion-branded luxury hotel

adding another 270 rooms to the 1,720 due to be on offer from the adjacent The Lisboa Palace Hotel and Palazzo Versace Macau venues. Covering some 70,468 square metres of land, Lisboa Palace will additionally offer fine dining at a number of Michelin-starred restaurants as well as luxury shopping via a themed retail mall containing further food and beverage options. Furthermore, there is to be a wedding pavilion and multi-purpose theatre providing visitors and locals with a venue for celebrations and events. To service the new venue, SJM stated that there will be 77,158 square metres of parking in addition to 37,386 square metres of landscaped areas to create ‘one of the premier entertainment and

leisure destinations in Macau’. “We are delighted to showcase Lisboa Palace of which the concept and design embodies the rich history of Sino-Western cultural exchange in Macau,” said Dr Ambrose So, chairman for SJM. “Lisboa Palace will provide diversified offerings of leisure and entertainment to strengthen the portfolio of SJM’s properties. We believe that in completing this complex we will have contributed substantially to Macau’s cultural infrastructure as well as to the development of tourism, recreation and leisure on Cotai.” An official event to mark the start of construction was held last month and saw a number of local officials in attendance including Tam Pak Yuen, economy and finance secretary for

Macau, and Wang Xin Dong, liaison office economic affairs department director for the Chinese government, alongside Angela Leong, managing director for SJM, and Louis Ng, chief operating officer for SJM. This ceremony was followed by the invitation-only Fantasy World of Sino-Western Cultural Interchange exhibition at the Grand Lisboa venue highlighting the new development’s East-meetswest design, which was inspired by French and European architecture combined with traditional Chinese motifs. The new development may yet grow even larger as negotiations are already underway for SJM to purchase a stake in an adjacent site owned by Leong, which could see Lisboa Palace triple in size.

FINANCIALS

Earnings up for NagaWorld CAMBODIA

he NagaWorld hotel and casino complex in Cambodia has released its financial results for 2013, indicating a 24 per cent increase year-on-year in total revenues to $344.9m (E243.7m). Net profits for owner-operator NagaCorp rose by 24 per cent when compared to the previous 12 months to $140.3m (E102.1m). The Phnom Penh venue attributed the rises to higher

business volumes from everyday players in addition to improved margins from its VIP market. “The mass market continued to generate a high margin of 95 per cent and contributed a significant 73 per cent to the group’s total gross profit,” said NagaCorp chairman, Timothy McNally. “The gross profit margin for the VIP market increased from 37 per cent to 40 per cent driven by higher win rates in the overall VIP market and better margins

14 | casinoreview March 2014

achieved by the overseas junkets incentive programme. The VIP market’s contribution to total gross profit also increased from 17 per cent to 22 per cent as a result of a higher VIP market revenue composition of 39 per cent.” NagaWorld has also released plans for its Naga2 development, which will be completed in two years and see the existing 700 hotel rooms joined by an additional 1,000 all linked by an underground shopping complex.

ustralasian casino operator SkyCity Entertainment Group is hoping to attract more highrollers to South Australia after inaugurating the new A$6.3m (E4.5m) Platinum Room at its Adelaide Casino venue. Themed around the 1920s and boasting eleven custom-designed chandeliers fitted with 1,100 Swarovski crystals from Austria, the conservatory-style Platinum Room was officially opened on February 14, additionally offering 150 slots. Part of an ongoing $315m (E229.7m) expansion programme that will soon include a 100-suite six-star hotel and, from May, the Pearl Room premium gaming area, the Platinum Room is reserved for those who wager a minimum of $10,832 (E7,878) a year and have passed problem gambling screening procedures. “We have assembled a truly world class team of architects, interior designers and builders to deliver an entertainment environment that is second to none in South Australia and

equal to any other interstate or overseas,” said Adelaide Casino general manager David Christian. Although average bet amounts are expected to be between six to seven dollars, Christian revealed that Platinum Room machines have been set with a $90 (E65) maximum wagering level but can be altered at the request of players to be unrestricted. The opening of the Platinum Room follows the introduction of new tax rates for premium and automated table games in South Australia as well as the authorisation of additional products such as ticket-in/ticket-out slots. An automated and voluntary pre-commitment risk monitoring system has also been launched while the venue began February by presenting a bespoke baccarat area complete with an Asia-style pavilion centrepiece.

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CR137-p16-17-Africa_Coinslot NEW 14/03/2014 11:43 Page 1

News

Africa & Middle East

Sun’s investment in Chile is has depressed the company’s figures for the first half, but the company’s restructuring and investment appears to be taking effect with underlying trends looking more positive.

FINANCIALS

Lacklustre first half for Sun International SOUTH AFRICA

evenues at Sun International’s casino operations barely grew in the six months to the end of December the company has reported, although a weaker rand encouraged more tourists pushing up revenues from its hotels both in terms of rooms and F&B. Gaming revenue at its 21 casinos, 14 of which are in South Africa, six elsewhere in Africa and one in Chile, reached R4.22bn (E283.2m). With hotel revenues up 26 per cent to R558m (E37.4m) and F&B up ten per cent to R628m (E42.1m), total revenues came in at just under R5.41bn (E363m) a rise of about four per cent on the same period last year.

16 | casinoreview March 2014

It was the Monticello operation in Chile that dragged revenues back: its gaming revenues were down 14 per cent on the previous year to R628m (E42.1m) and total revenues down 13 per cent to R702m (E47.1m). The venue’s share of group revenue fell from 15 per cent in the second half of 2012 to 13 per cent in H2/2013. Gaming revenues in South Africa were up a modest three per cent to R3.37bn (E226.3m) with total revenues up six per cent to R4.16bn (E279.3m). Sun has declared a dividend of 90 cents for the period, down from 110 cents a year earlier. The company said: “Trading for the period

remained challenging, particularly in South Africa where casino revenue has remained under pressure, and at Monticello where the effects of the smoking ban persist. The weaker rand has, however, given a welcome boost to the tourism industry and to the group’s hospitality revenues.” In Chilean pesos, the fall at Monticello was even more severe, down 22 per cent, however, the company is trying to mitigate the measure. Sun said: “Two smoking decks were opened towards the end of September [2013] and a further two decks in late October and these are starting to have a positive effect on revenue

with the decline in gaming revenue slowing to 11 per cent in November 2013 and seven per cent in January 2014… A comprehensive restructure of Monticello was undertaken in September, which has resulted in the EBITDA margin improving from 13.9 per cent to 20.4 per cent in the second quarter.” Group EBITDA was down five per cent on the previous year to R1.5bn (E100.6m), with the margin dropping from 30.1 per cent to 27.5 per cent. GrandWest remains the company’s biggest earner with revenues ahead eight per cent at R999m (E67m) and EBITDA up five per cent to R408m (E27.4m). Another strong performer

was the Boardwalk in Port Elizabeth, which has undergone a huge refurbishment programme following Sun’s success in retaining the licence in 2011: total revenues there were up 18 per cent to R278m (E18.6m), including gaming revenues up 11 per cent. The future strength of GrandWest as the sole casino in the Western Cape remains uncertain, as the provincial government has yet to decide on whether to license another venue that would serve the Cape Town area after Sun’s exclusivity deal elapsed in December 2010. According to recent reports, no new licence is in the offing, however, the government might allow another operator to trans-

CR137-p16-17-Africa_Coinslot NEW 14/03/2014 11:43 Page 2

KENYA / SOUTH AFRICA YXYXYXY OPERATOR NEWS: JW@SJC.CO.UK

LEGISLATION Refurbished and refreshed, Sun’s Boardwalk casino in Port Elizabeth is repaying the investment with growth

New online legislation proposed for South Africa SOUTH AFRICA

ANALYSIS un International operates in difficult markets: its top class venues cater to economies that are not as wealthy as comparable venues in other countries. If the economies in their markets take a knock, or some other factor like the smoking ban in Chile comes into play, the impact can be disproportionate and that will affect what it can spend on reinvestment. Casinos do not thrive if they are not well looked after. Sun has taken some bold decisions in its investments and strategic direction - in a subdued economy spending money, even if you have it, can be hard to justify. Where it has chosen to concentrate its resources, it is already seeing the results.

fer one of their existing licences to the city. Sun is unsurprisingly against the idea. It said: “We remain of the view, which is based on our extensive database of guests derived from 12 operating in the region, that there is no significant untapped gaming revenues in the Cape metropole. The untapped gaming revenue that exists is found within geographically fragmented areas which cannot be access or serviced by a single new casino - and is certainly nothing that could justify the establishment of another large casino in the catchment area of the city, which is already being well serviced by GrandWest.”

outh Africa may soon become the next country to legalise online wagering after Geordin Hill-Lewis, a Member of Parliament representing the Democratic Alliance political party, proposed legislation that would repeal sections of the 2008 National Gambling Act. Under pressure from commercial interests that are against the proliferation of unregulated iGaming sites such as those operated from neighbouring Swaziland, lawmakers have struggled to appoint a national gaming regulator while concerns are growing over consumer protections and taxation. As written, Hill-Lewis’ measure would require online operators to apply for separate licences from each of the nation’s ten provinces, each of which would be able to set their own tax rates subject to a

minimum standard. Although these local agencies would have responsibility for scrutinising individual applicants, a national board is envisioned to guarantee consistent ‘norms and standards’ such as a complete ban on gambling with credit. In addition, firms already holding a South African gaming licence including Sportingbet and Krugerbets could be required to reapply for a remote gaming license while specified categories would be set for operators, suppliers and manufacturers.

“With this regulation, we can look to satisfy consumer demand and offer our customers a full suite of gambling products in a safe and secure online environment that abides to local regulatory controls and consumer protections,” said Sportingbet managing director Tyrone Dubbin. The new legislation could be introduced to Parliament before the end of March but it is expected that the subsequent process of establishing standards could take upwards of six months with licenses unavailable for an additional 18 months.

AFRICA ROUND-UP he launch of the proprietary 21+3 Blackjack table game from Galaxy Gaming into the South African market has been described by the machine operator as a “groundbreaking success”. Premiered at the Carnival City Casino in Gauteng following the signing of a strategic partnership agreement with leisure group Sun International, Galaxy revealed that it intends to apply for licences with other provincial gaming boards in South Africa over the coming months in order to launch the innovation at the Sun City, Boardwalk, Morula, Carousel and Meropa properties. Also in South Africa, the consultation period for the nation’s new Electronic Services Regulations has taken place seeking public comment for plans to charge a 14 per cent value-added tax (VAT) on all electronics and games. Finance minister Pravin Gordhan (pictured) declared that the proposed tax would apply to all internet-based games including multiplayer

TAXATION

Tax on winnings suspended in Kenya KENYA

amblers in Kenya have received a temporary reprieve after the High Court suspended the collection of a 20 per cent tax on winnings, amid claims that the government had not adequately consulted stakeholders. The controversial duty classed all winnings as income, and has been in effect since January after being passed as an amendment by the National Assembly and Senate and signed into law by President Uhuru Kenyatta. High Court Justice David Majanja ruled in favour of 42 operators who had initiated a lawsuit against the Kenya Revenues Authority implementing any collection procedures. Their petition claimed that the new tax drove away gamblers while additionally discourag-

ing prospective customers. “The amendments would drive away gamblers especially foreigners who will choose to take their money elsewhere in neighbouring countries such as Tanzania that do not impose a withholding tax on players from winnings gained from betting and gaming,” said Patrick Wachira, lawyer for the operators. “The casino operators were not given audience to air their views before the law was amended as required by the Constitution.”

role-playing, betting and wagering titles alongside games of chance where results are influenced by the skill of a player. Finally, online gaming revenues in South Africa are forecasted to grow by a smalldouble digit percentage between 2013 and 2017. A new publication by Hamburgbased secondary research organization yStats.com indicates that gamers are moving away from consoles and preinstalled PC games toward online and mobile games. “Mobile gaming outperforms pure online gaming by far in South Africa, with the revenues differing by several times,” the report stated. “In other African countries, such as Ghana, Nigeria, Kenya and Senegal, online and mobile gaming is also gaining popularity, with a small double-digit share of Internet users engaging in this activity on their mobile devices and PCs.” March 2014 casinoreview

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CR137-p18-20-NAmerica_Coinslot NEW 14/03/2014 12:18 Page 1

News

North America

TRIBAL COMPACT

The Navajos have a year to agree a new compact to allow them to keep operating their existing casinos, after plans to expand their gaming business met fierce opposition and were defeated.

Navajo Nation expansion plans thwarted

UNITED STATES

he New Mexico State Senate has rejected a new gambling compact for the Navajo Nation that would have allowed it to open three more casinos in the state in addition to the two fairly large venues it already operates and a lower-stakes bingo facility. The measure was unequivocally turned down by 31 votes to 10 on February 19, a day after it had been approved by a much narrower vote of 3630 in the House. The Navajo’s existing compact, in effect since 2003, expires along with those of four other tribes in June next year: under those agreements there was no limit to the number of casinos permitted. Nine other tribes in the state also agreed gaming compacts in 2007, in which each was limited to two casinos. The rejected compact was negotiated with Governor Susana Martinez and would have run for 22 years until 2037. It would have given the tribe up to 15 years

18 | casinoreview March 2014

to develop and build the extra casinos, however, the president of the Navajo Nation Ben Shelly said it was likely that the first job would be upgrading its existing estate with conference centres, hotels or golf courses - which the eventual revenues of the new casinos would have helped to pay for. The new compact would also have required the Navajos to make payments to the state on the same terms as those agreed with the other tribes in 2007 somewhat more than at present. In a statement after the Senate vote, Shelly said: “The stakes could not have been higher as the company affects more than 950 gaming positions [jobs] and a vital revenue stream for the Nation. The Navajo people will be negatively impacted by this vote, especially if we are forced to close our casinos.” The Navajo Nation has invested more than $250m

in its casinos and any closure would have a dramatic effect on its budget, as well as on the employees themselves. The opposition from the pueblos - the other Native American tribes in New Mexico - derives from fears about the competition new casinos would have on their own venues. There are already 20 tribal casinos operating in New Mexico, along with five racinos offering slot games. According to the Acoma and Laguna pueblos, who gave evidence to the State Legislature, the gambling market in the state is saturated and that therefore their own casinos - hugely important revenue drivers and employment opportunities for the tribes - would suffer. There was particular concern that the Navajos would choose land they own near the state’s largest city, Albuquerque, for one of the new venues. The risk is now that another compact will not be

agreed before the current one expires, which would mean the forced closure of the Navajo casinos until it can come into effect. Opponents, however, believe that with more than a year to go there shouldn’t be a problem. The issue has disturbed an otherwise fairly affable relationship between the tribes. President Shelly said: “It is upsetting that each of the pueblos claimed to support tribal sovereignty but yet they voted against our compact.” For the pueblos, however, it was about a market that could become unbalanced and cannibalistic. Rep. Georgene Louis, who voted against the measure in the House, said: “I’m just afraid there’s not the market for more facilities. I am worried because I have constituents and I have family and I have friends that work and support their families by jobs at facilities that are very close to Albuquerque.”

President Ben Shelly of the Navajo Nation

CR137-p18-20-NAmerica_Coinslot NEW 14/03/2014 12:18 Page 2

YXYXYXY CANADA / NAVAJO NATION / UNITED STATES Online penalties 24

ONLINE WAGERING: PENNSYLVANIA MAY BE LOOKING AT THE POTENTIAL OF LEGALISED ONLINE WAGERING, BUT IT WILL COME WITH HEVTY PENALTIES FOR POOR OPERATORS.

ANALYSIS he gaming compacts that the tribes have agreed with states over the last 26 years since the signing of the Indian Gaming Regulatory Act (IGRA) by Ronald Reagan have transformed the lives of many Native Americans, providing jobs and revenues on tribal land that were simply not available before, often in states where casinos are otherwise illegal. The growth of Indian casinos has created a locals market in the US that has had a significant impact on the traditional centres such as Las Vegas and especially Atlantic City, by now putting casinos within a two-hour drive of most Americans. There is a saturation point, especially in a locals market, where too many casinos are chasing too few customers. The opposing tribes in New Mexico feel that point has been reached there: the Navajos feel they could squeeze out a few more, and that the market should be competitive. But tribal casinos do not really operate in a raw, marketdriven competitive sphere; their role goes beyond simple commercial considerations. The whole point of IGRA was to level the playing field for Native American Tribes, all tribes, not just the powerful few.

The Navajo’s Northern Edge casino near Farmington, New Mexico

DEVELOPMENT

New York casino expansion gathers pace UNITED STATES

ew York has taken another step towards the construction of four Las Vegas-style upstate resort casinos, after the state announced the initial members of a five-member location selection board in February. November 2013 saw residents of the populous eastern US state approve a constitutional amendment authorising the establishment of up to seven non-aboriginal resort casinos with full-table gaming facilities. The first four developments are to be sited outside of New York City in areas around the central Hudson River or Catskill Mountains, near the state’s ‘southern tier’ border with Pennsylvania and close to the state capital, Albany. New York City comptroller Bill Thompson, business executive and former senior gubernatorial policy advisor Paul Francis and Hofstra College president Stuart Rabinowitz will now sit on the New York State Gaming Commission’s Facility Location Board

Bill Thompson

while the remaining two members as well as an outside consultant are expected to be appointed in the “very near future”. The Facility Location Board is expected to begin accepting applications from over one dozen developers paying a $1m (E728,600) consideration fee later this month before making its final recommendations by the end of June. “These individuals have the expertise, objectivity and knowledge of New York state to evaluate the applications to operate destination resort casinos,” said Mark Gearan, Governor Andrew Cuomo’s candidate to head the New York State Gaming Commission. “I thank them for their commitment to bringing much-needed economic development, revenue and jobs to upstate New York.” New York already has five aboriginal-run casinos and nine ‘racinos’ offering slot-like video lottery terminals while the first tranche of new resort developments is due to be followed after seven years by another three.

FINANCIALS

Alberta’s Eagle River Casino enters bankruptcy CANADA

fter opening its doors in January of 2008, the Eagle River Casino and Travel Lodge in Edmonton, Canada, is in the midst of bankruptcy proceedings with debts of around C$90m (E65.4m). The local Alexis Nakota Sioux First Nation holds a 60 per cent share of the casino, hotel and truck stop with the remainder controlled by Las Vegas-based Paragon Gaming Corporation, while the venue currently has assets of approximately $51m (E37.3m). Despite hopes that the

development would become a tourist attraction and create jobs, the Eagle River Casino and Travel Lodge has been consistently losing money recently with bankruptcy documents showing that site manager Paragon Canada Alexis owes private

equity firm Silverpoint Finance about $73m (E53.7m) in addition to approximately $16m (E11.7m) to Diana Bennett, chief executive officer for Paragon Gaming. The Alberta Gaming and Liquor Commission stated that the ongoing bankruptcy

proceedings have had “no impact” on the gaming licence as this is held by Alexis Casino Limited Partnership. “The casino remains open to customers,” said Jody Korchinski, spokesperson for the Alberta Gaming and Liquor Commission.

March 2014 casinoreview

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CR137-p18-20-NAmerica_Coinslot NEW 14/03/2014 12:19 Page 3

News

UNITED STATES

North America

I-Gaming in Stockholm 63

IGAMING FORM: STOCKHOLM TACKLES THE PROBLEMS OF IGAMING AND OPENS THE DEBATE ON ITS RICH OPPORTUNITIES WHEN IT HOSTS THE I-GAMING FORUM IN APRIL.

US casino operator Century Casinos has followed agreements on a planned Alberta site with a deal to operate gaming facility on board a new cross-border ferry cruise service.

NORTH AMERICA ROUND UP

CRUISE CASINOS

Century Casinos continues expansion entury Casinos has signed an agreement to operate a casino onboard a new 10hour ferry cruise service that is set to begin running between Maine and Nova Scotia from May. The deal with Nova Star Cruises will see Colorado Springs-based Century Casinos fully equip and manage 70 slot games on board the modern Nova Star vessel, while also offering live and electronic table games, accounting and surveillance systems as well as furniture, fixtures and fittings until October of 2020. The project to restart the once popular round-trip ferry service between Yarmouth in Canada and the Maine city of Portland across the Bay of Fundy has the full support of the Province of

he long-discussed idea of constructing a casino in the Michigan city of Muskegon has been given new life, as the Grand River Bands of Ottawa Indians have been notified that a 1994 petition to attain federal acknowledgment is being ‘actively considered’. The letter from the federal Bureau of Indian Affairs’ Office of Federal Acknowledgment means that the group could eventually attain tribal status, which could see it proceed with plans to develop a casino at the Harbor 31 business park development on Muskegon Lake (pictured). Further south, the North Carolina Department of Transport has awarded a contract to build a bridge to the site of a casino being developed by the Eastern Band of the Cherokee Indians in largely rural Cherokee County. The aboriginal group broke ground on the new casino in October with the state agency further revealing that it intends to award a contract for a new road near to the casino in the near

Nova Scotia, which recently pledged roughly $20m (E14.5m) over the next seven years, while the new Nova Star will have a capacity of 1,215 passengers alongside 336 vehicles. Century Casinos already operates casinos on board vessels run by Oceania Cruises, TUI Cruises, Windstar Cruises and Regent Seven Seas Cruises in addition to four land-based venues located in Colorado and Alberta. The group recently extended its three-ship deal with Miamibased Regent Seven Seas until the end of 2016 while also introducing a fleet-wide progressive jackpot covering these and five Oceania vessels. “We are thrilled about the opportunity to run the casino on board the Nova Star,” read a statement from Erwin Haitzmann and

Peter Hoetzinger, co-chief executive officers for Century Casinos. “We believe that the casino will be a popular amenity on board the vessel leading to good returns for both Nova Star Cruises as well as Century Casinos. This will further solidify Century Casinos’ position as the worldwide market leader in operating casinos on cruise vessels.” Century Casinos is due to report its full-year financial results at the end of March but recently revealed that its net operating revenues for the three months to September 31 had rocketed by 54 per cent year-onyear to reach $28.8m (E20.8m). In addition, the third quarter saw the firm established in 1992 by former executives at Casinos Austria earn adjusted earnings before interest, tax, depreciation

and amortisation of $3.3m (E2.3m), which represented an increase of 19 per cent when compared with the same period in 2012, although net earnings fell ten percent to $1.1m (E796,418). These results made Century Casinos optimistic enough to sign agreements with United Horsemen of Alberta Incorporated and the Bank of Montreal in December to finance and manage a horseracing facility and casino in Balzac, Alberta, near Calgary. The new Century Downs Racetrack and Casino is expected to cost around $23m (E16.6m) and will consist of a 5.5 furlongs track alongside a gaming facility featuring 550 slots and an off-track betting area in addition to a bar, lounge and restaurant.

CRIME

Las Vegas Sands targeted by hackers UNITED STATES

he world’s largest casino operator, Las Vegas Sands Corporation, was the victim of an attack by computer hackers last month that saw all of its websites and email systems closed for six days. The February 13 strike saw sites for the firm’s Bethlehem, Pennsylvania, Las Vegas, Macau and Singapore properties replaced with images condemning comments made last year by Sheldon Adelson, the 80-year-old chief executive officer for Las Vegas Sands, regarding the possible use of nuclear weapons on Iran. The unidentified hackers also allegedly stole employees’ Social Security numbers and posted an eleven-minute online video that featured dozens of administra-

20 | casinoreview March 2014

tor passwords including those for slot machine systems and player information at Las Vegas Sands’ Bethlehem casino as well as employee files and a diagram of the company’s internal networks. “We have now determined that the hackers reached at least some of the company’s internal drives in the United

States containing some office productivity information made up largely of documents and spreadsheets,” said Las Vegas Sands spokesperson Ron Reese. “We have seen the video and are continuing to investigate what, if any, customer or additional employee data may have been compromised as part of the hacking.” The attack is now being investigated by the officials from the FBI and Secret Service as well as the Nevada State Gaming Control Board with several cyber-security experts stating that it could have taken the hackers several months to hack into Las Vegas Sands’ systems. “The risk of these things happening is certainly increased in this day and age and we will investigate it thoroughly,” said AG Burnett, chairman for the Nevada State Gaming Control Board.

future. In Florida, the casino ship Island Breeze II recently set sail from the Port of Palm Beach following months of renovation that cost upwards of $3m (E2.1m). Owner Island Breeze Casino revealed that the 160-foot vessel passed a US Coast Guard safety inspection before entering the Atlantic Ocean complete with a complement of over 200 slot machines in addition to blackjack, three-card poker and miniature baccarat table games. Elsewhere in Florida, Dania Beach Casino and Jai-Alai just north of Miami has undergone a partial renovation and now offers 550 slot machines alongside a dozen new poker tables. The venue has been around for 57 years but was purchased by a group of Argentinean investors last year with the stated ambition of transforming the club into one of the southern United States’ most unique gaming destinations.

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CR137-p22-23-SAmerica_Coinslot NEW 14/03/2014 12:24 Page 1

News

South America

GROSS REVENUES

Chile’s casinos have recorded their worst year-on-year results since new legislation game into force in 2005, with a smoking ban having a huge impact on revenues last year. However, investment in new spaces and improved offers may help it bounce back all the sooner.

Chilean casino revenues drop by a fifth in 2013

Monticello Grand Casino remains the dominant force in Chilean casinos CHILE

he 17 2005 Act casinos operating in Chile in 2013 saw their revenues fall by 19.5 per cent over the previous year, the Superintendent of Casinos has reported, with takings affected significantly by a smoking ban introduced at the start of the year. Combined gross gaming revenue for the year stood at US$479m (E348.3m) from $594.8m (E432.5m) in 2012. The number of visits was also down dramatically at just under 5.8m, a fall of 17.3 per cent on the previous year, meaning that spend-per-head also fell from $85.41(E62.10) to $83.15 (E60.46). Monticello Grand Casino, 55km south of the capital Santiago, remained by far the largest player in

22 | casinoreview March 2014

the market. The venue, operated by South Africa’s Sun International, held a 27.3 per cent market share $130.7m (E95m) - followed by Casino Rinconada with 12.5 per cent and Marina del Sol with 11.6 per cent. All the largest casinos saw revenue falls of more than 20 per cent in 2013: Monticello was down 20.3 per cent, Rinconada down 21.9 per cent and Marina del Sol 23.6 per cent. The worst result was for the tiny Termas de Chillàn where revenues fell 50 per cent to $0.3m (E0.2m). However, the two casinos ranked just above Chillàn, Dreams Coyhaique and Enjoy Chiloé bucked the national trend to score increases in GGR of 16.7 per cent and 65.6 per cent respectively:

however, both venues opened in the spring of 2012, so are comparing a full year last year with seven or eight months only of the previous. An average of 9,687 slot machines were in operation across the 17 casinos in 2012 generating a handle of just over $5.85bn (E4.25bn) and GGR of $377.5m (E274.5m) a return to player of about 93.6 per cent. Monthly casino revenues were at their highest in January 2013 (in 2012, January was the low point) and fell away sharply. Only January and February 2013 saw greater revenues than any month in 2012. The response from operators to the smoking ban to has been to invest in new

facilities that they hope will retain their tobacco-loving clientele. Sun International has created four new smoking terraces at Monticello and Enjoy has developed “Enjoy Open”. “These are open areas where people can be entertained by the best games in the casino and still smoke,” said Enjoy’s manager of corporate affairs, Sofía Moreno. “The terraces are also conditioned to increase the comfort of guests.” The expectation is that after a time, the effects of the smoking ban will wane. Jaime Wilhelm, general manager of Dreams, which operates four casinos across the country, said: “In other countries that have implemented similar anti-

ANALYSIS hile, we hope, offers a textbook example of what happens when a country introduces a ban on smoking in public spaces. In casinos, which attract a disproportionate number of smokers, revenues nosedive by a fifth to quarter in the first year to a baseline then gradually climb back up. Slightly different conditions in each country have different outcomes: Chile's operators hope that they will regain the lost ground by the end of 2014: that may be optimistic but they are taking precisely the right steps through investment in outdoor spaces sometimes with gaming and in new attractions for customers. The challenge used to be how to keep customers playing, the ergonomics of the machine and the seat, the friendliness of the dealer: now the challenge is how to keep them coming back to play. It's a subtle but important difference. Casinos need customers and if the pattern of how those customers behave changes, they must adapt. It's a numbers game after all.

smoking policies, we have seen a recovery between nine and 12 months after they came into force. We hope that in Chile the recovery will behave in the same way.” Dreams has also hired a former producer of Chile’s best known TV export Sábado Gigante (an eclectic mix of songs, sketches, comedy and game show that is also now produced in the US) to pep up its inhouse entertainment. Wilhelm said: “The optimisation of our entertainment offering in the various casinos has encouraged thousands of customers to continue to choose us, as well as many more new people who come to the casinos attracted by the shows.”

CR137-p22-23-SAmerica_Coinslot NEW 14/03/2014 12:24 Page 2

YXYXYXY ARGENTINA / CHILE / CUBA ELA deferred

ELA POSTPONED: THE ANNUAL ELA SHOW IN MEXICO HAS BEEN POSTPONED TO 2015 AFTER EXHIBITORS SAID THEY WANTED TO WAIT UNTIL AFTER GOVERNMENT DEBATES ON GAMBLING REGULATION.

NEWS SOUTH AMERICA ROUND-UP

OPENING

Hotel Capri reborn after restoration

Once popular with 1950s Hollywood celebrities, the iconic Hotel Capri has re-opened in Cuba following four years of work by Grupo Caribe and NH Hoteles. CUBA

fter sitting empty for much of the last decade, the Hotel Capri has once again opened its doors in Havana, Cuba, following four years of renovation by state-run tourism company Grupo Caribe and Spanish hotelier NH Hoteles. Built in late-1957 by organised crime figure Santo Trafficante, complete with art-deco granite floors and coppercoloured chandeliers in its lobby, the Hotel Capri became an instant hit with the foreign tourists that flocked to prerevolutionary Cuba. Actor and renowned playboy Errol Flynn was just one of the many celebrity visitors while George Raft, best known for his portrayal of Guino Rinaldo in the 1932 film Scarface, served as a greeter in the venue’s casino while making his home

in the 19th-floor penthouse. Following the 1959 uprising that saw Fidel Castro propelled into power, the site was operated as a state-run hotel hosting guests such as Cuban crooner Omara Portuondo and left-wing Uruguayan writer Mario Benedetti. A continual lack of maintenance saw the once grand building eventually fall into disrepair while a 1997 bomb set off in its lobby by militant anti-Castro exiles caused severe damage but no fatalities. Hotel Capri eventually closed its doors in the early-2000s but its rebirth is part of Cuba’s latest bid to trade on its colourful pre-communist past and attract tourist dollars to fund the Caribbean island nation’s socialist present. The refurbished venue has remained true to its art deco past and even retains the rooftop pool with spectacular views of the Florida Strait seen in the 1959

awyers acting on behalf of six of the eight casinos located in the Mexican state of Yucatan have filed a lawsuit against the government and local administration concerning provisions contained in the new Revenue Act. The controversial legislation went into effect in January and obliges gambling venues to pay a tax of around $150 (E108) for each slot they offer, while additionally imposing a ten per cent consumption duty on winnings or deposits to a card. The Revenue Act was designed to raise approximately $15m (E10.9m) in the southern Mexican state to meet a shortfall in taxes with $9m (E6.5m) of this set to come exclusively from casinos. But, operators will argue at a March 12 hearing that they

British film Our Man In Havana. While no gambling is offered, low-slung sofas throughout the lobby hark back to the 1950s while rooms feature old Havana cityscape photos. There are modern touches including building-wide Wi-Fi while Raft’s penthouse has been transformed into a high-end restaurant complete with white tablecloths and lavender-paisley chairs. The redeveloped hotel even has a nightclub, The Salon Rojo, which charges an entrance fee of $10 (E7.27).

INDUSTRIAL ACTION

Strike action closes Argentina casinos ARGENTINA

rgentina’s largest and most populous province has been racked by strikes after a worker at the nation’s Central Casino was suspended over accusations that he assaulted multiple co-members of staff. The Association of Management and Maintenance Services for Casino (AMS) union called the action that has closed casinos throughout Buenos Aires Province after its member was excluded by the Institute of Lotteries and Casinos authority despite assertions of self-defense.

The AMS declared that the unnamed worker at the casino located in the seaside resort of Mar Del Plata had been ‘beaten brutally” after being set upon by coworkers who opposed the

current leadership of the union. It stated that the subsequent decision to suspend him had been “unjust and incomprehensible”. “He was attacked by several co-workers but the sus-

pended member lost two teeth and now has a disfigured face,” said Roberto Paez, the newly elected general secretary for the AMS. “The Institute of Lotteries and Casinos then decided to suspend our member, which is why we have instituted a work stoppage affecting all casinos located in Buenos Aires Province.” The assault is indicative of recent tensions that have arisen within the AMS only weeks after Paez was elected to his post. The union is lobbying to change the way the province’s casinos are run and urged the government in April to put the 12 venues offering 3,863 slots under state control.

should be protected from the measures to avoid losing customers and incurring significant losses. The Uruguayan Gaming Board, meanwhile, has taken the contentious step of turning the Mantra Resort Spa and Casino (pictured) in the seaside town of Punta Del Este into a seasonal venue. Despite protests from workers, the venue closed on February 28 and is not scheduled to re-open until December after reporting losses of $500,000 (E362,300) last year primarily due to the loss of the affluent tourists who serve as its primary clientele. Javier Cha, head of the Uruguayan Gaming Board, declared that no jobs would be lost as a result of the move with workers being employed in the slower months at the nearby Casino Nuevo Nogaro. March 2014 casinoreview

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CR137-p24-25-Comment_Coinslot NEW 14/03/2014 12:28 Page 1

Comment & Analysis

STRATEGY

ONLING GAMING

Pennsylvania lawmaker proposes online penalties

W Developing the right content for specific markets

“

Sabby Gill, senior vice president of international sales for IGT, discusses this year’s ICE Totally Gaming and how the London event fits into the gaming group’s rolling programme of innovative product launches.

This year at ICE we witnessed a bigger demand for our products, and more interest than ever before. This really comes down to the economy - particularly the European economy. What we have been hearing from operators is that the worst is over. This is really the year of growth and the year of transition and, based on what we have been hearing, we are really excited. Through listening to some of the presenters at the ICE conference sessions, it is clear that many operators are now at the stage where they know they have to invest. They know they have to give the player a different experience in relation to what they have traditionally been used to. As such, we not only presented a lot of new brands at G2E last year, but also some completely new games at ICE 2014. These include titles such as Jenga and Bollywood Dreams; a number of locally-tuned games specific for Asia, Latin America and other different regions; and new innovations under the Video Reel Edge umbrella. IGT continues to develop a lot of new content, and as a truly international company we no longer have just one launch pad - be it G2E, ICE or another global event. We launched new product at ExCeL this year, and you will see this journey continue at G2E Macau and throughout the year. The way that we approach the market is not just with the intention of selling to other businesses, but we seek to understand the player - ‘B2B2P’, if you will. It is crucial to understand the player and the demographic of the individual for whom you are trying to make games, whether it is an immersive, entertainment-type game or a high volatility title. We don’t build games to cover all bases. We develop the right content for specific markets that will best benefit most our operators.”

RESPONSIBLE GAMBLING

Machine suppliers call for level playing field 24 | casinoreview March 2014

ith Pennsylvania currently studying the potential of legalised online wagering, a member of the eastern state’s House of Representatives has proposed a plan that could see those found guilty of web-based wagering sent to jail. Mario Scavello (pictured) wants to introduce legislation that attaches severe penalties to online gambling, which is illegal in Pennsylvania but not punishable, including a $300 (E218) fine and up to 90 days in jail for a first offence. Under the Monroe County Representative’s proposals, a second violation would be classed as a misdemeanour and carry a maximum $2,500 (E1,800) penalty in addition to up to a year behind bars. “Here again, online gambling is best described as the Wild West,” said the 61-year-old. “Online, there’s no one around to keep an eye on someone who doesn’t know when to stop. I believe that if you hit people in their wallets we can start to crack down on the lawbreakers.” Scavello revealed that his plan, which is being supported by fellow Republican Representatives John Lawrence and Paul Clymer, is an attempt to eliminate the threat of vulnerable individuals such as children gambling online. The Coalition to Stop Internet Gambling advocacy group, which was established in January by Las Vegas Sands Corporation chairman and chief executive officer Sheldon Adelson, has voiced its support for Scavello’s plan and immediately released statement calling the move ‘a step in the right direction’. “We call on the Pennsylvania Legislature to vote in favour of this bill and send a powerful message that online gaming has no place in American society,” read the statement.

cientific Games Corporation subsidiaries Inspired Gaming and SG Gaming have welcomed the launch of the first phase of responsible gambling measures on Category B2/B3 gaming machines in UK bookmakers, and call for the mandatory introduction of these measures across all categories of gambling in the country. Luke Alvarez, CEO and founder of Inspired Gaming, said: “We do not want problem gamblers playing on any of our machines and the new measures are a positive first step in our long-term development roadmap to better protect the 0.5 per cent of problem gamblers in the UK and to min-

imise the risks to all gamblers. “However, it makes no sense to target bookmakers’ machines specifically - those vulnerable to addiction will still be at risk with other venues, products and channels and we urge the Government and Regulator to work with stakeholders on how it can develop the concepts and learnings from the ABB Code for Responsible Gambling and Player Protection (ABB Code) across all UK land-based and online products.” Steve Frater, chairman of SG Gaming, added: “We are committed to providing a fun leisure experience for those who enjoy playing on machines, whilst developing new ways to protect those who are at risk of

CR137-p24-25-Comment_Coinslot NEW 14/03/2014 12:29 Page 2

COMMENTS: JW@SJC.CO.UK

MEDIA WATCH

Asian gambling continues to boom with news from Japan, Macau and Australia pointing to improving times ahead.

he UK’s left-leaning daily, The Guardian, highlighted a report by The Economist which reveals that Australians gamble more than any other nation on Earth. The average Aussie spends around $1,144 (E836) on gambling each year. Of that sum, around $520 (E380) is funnelled into poker machines, known locally as ‘pokies’. The article also quotes a study by Dr Charles Livingstone, a researcher from Monash University, which reveals that Australia has the highest concentration of poker machines anywhere in the world. While the Assies lead the way in the pokies stakes, Bloomberg Businessweek focuses on the potential for Japan’s unrealised casino market. With lawmakers in the country expected to legalise large-scale gaming venues during 2014, casino investors such as Sheldon Adelson have been making positive noises concerning potential investment. The Las Vegas Sands chairman is quoted in Businessweek as saying he will “spend whatever it takes” to make a casino resort in Japan a reality. Bloomberg’s own industry experts have also been weighing in on the issue, with the publication’s Tim Craighead arguing that Japan, “has the potential to become the ‘next big thing’ beyond Macau.” As for Macau itself, the Sydney Morning Herald reported on attempts by big resort owners to sidestep VIP hosting companies

with their own services. Junket operators are a long-time fixture of the Asian gambling scene, taking rich gamblers across the border and giving them interest free loans to circumvent limits on the quantity of cash one person can take out of the mainland, but that process, it seems, is now under threat. Venues such as Adelson’s Sands China have begun to replace these junket operators with their own comp services, providing high value players with free food and rooms during their stay. The Herald quotes MGM China Holdings chief executive officer Grant Bowie as saying that, “direct VIPs give us considerably higher profit margins.” Some companies, however, are happy to continue with the existing system. Asia’s largest casino operator, SJM Holdings has confirmed that it plans to continue using junket operators to secure VIP players. “SJM is comfortable with our junket relationships and with the junket system, which operates legally in Macau,” said CEO Ambrose So. SJM has recently been courting controversy in Macau, according to The Motley Fool, which reports that the company’s casino staff are upset over paltry wage increases. SJM recently announced year-end bonuses for its top executives, a move that sparked minor industrial action from more than 1000 of the company’s employees.

harm. We have been able to develop and deploy new player protection measures in under five months since the publication of the ABB Code in September but see this as only the first step in achieving world leading player protection software through continuing research and development.”

Players can self-set customisable time and/or spend limits at the start of their session and will receive an on-screen alert about the money and time spent once limits are reached Staff are notified via the cashier system when any limits are reached, allowing for human intervention, and staff will be receiving comprehensive responsible gambling training Described by academic experts as ‘world-leading harm minimisation measures’ Code came into effect March 1

UK RESPONSIBLE GAMBLING MEASURES Introduces enforced breaks for customers on gaming machines with automatic on-screen alerts about the money and time spent.

www.eu.suzohapp.com March 2014 casinoreview

| 25

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

THE BEST WAY TO REACH OPERATORS A

Operators

Regulators/Government/Law

84.2%

Global Circulation

Readership breakdown by sector

16,844

13.8% Suppliers

A READERSHIP OF INFLUENCERS AND DECISION MAKERS A

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

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

30.1%

20.4%

Managing directors/ general managers

Others (senior game designers, ﬁnancial directors…)

46.6%

USA/CANADA/CARIBBEAN

2,004 11.9%

Readership breakdown by job title

2.9% B

INCREASING CROSS CHANNEL READERSHIP A

Land based casino

2.5% Lottery

Slot halls/Street gaming

Online/Mobile

62.9% Readership breakdown by type of gaming

PRINT 4,061

16%

18.6%

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Review

ICE 2014

SUPPLIER NEWS: JW@SJC.CO.UK

COMMENT

Successful ICE reflects industry’s renewed focus on innovation

ICE rips up the records book

S After reporting a record of number of visitors and exhibitors this year, the organisers of ICE Totally Gaming have provided an upbeat outlook for the global gaming industry in 2014.

ome 23,891 gaming industry professionals defied a 48-hour strike on the London Underground to set a new record attendance at ICE 2014. The figure, which at this stage remains unaudited, represents a seven per cent increase on 2013 and a 12 per cent uplift on 2012, the last edition of ICE to be held at Earls Court. Kate Chambers, portfolio director responsible for organising the world’s largest business-to-business gaming event, described ICE 2014 as “the most dynamic celebration of international gaming imaginable”. Reflecting on the event, which opened on the Monday with the International Casino Conference, Chambers said: “I would like to pay tribute to the many thousands of visitors who navigated their way across London using a combination of taxis, cars, buses and even boats to get to the river fronted ExCeL Centre. This says a huge amount about their determination not to have gaming’s most important business week of the year ruined by a strike. “The ICE team also worked tremendously hard to put on an event which reflected the investment made by our visi-

Event organisers Julian Graves and Kate Chambers

28 | casinoreview March 2014

tors and the 503 exhibiting companies which occupied the 55,000sq.m of space at ExCeL. Not only did the team work harder but they also worked smarter.” Chambers’ upbeat analysis was echoed by Nick Harding, CEO of UK street gaming operator Praesepe, who believes that ICE sets the tone for the year ahead. “ICE certainly lived up to its billing as the most sensational gaming event in the world,” he said. “For the sectors I am most concerned with - AGC and bingo - I felt that there was a strong and relevant product mix on show. Zane Mersich, CEO of the Astra Gaming Group, believes that ICE Totally Gaming attracts a discerning audience comprising some of the most influential decision makers in the global gaming business. He said: “We came with a world-class product portfolio that was tailored perfectly to exceed their expectations - and I think we achieved that in some style. Our efforts at ICE were, of course, helped significantly by the recent implementation of the new £100 Cat C jackpot which proved to be a case of classic timing for us and the broader business. As we expected, they expressed a keen interest in learning more about our current models and our plans to reinvigorate the Cat C genre going forward.” Off the floor events organised by Clarion included the eight strong ICE Conference programme which comprised 40 hours of targeted learning and networking, as well as free to enter seminars on the Bitcoin phenomenon, gambling opportunities in India, the legal considerations and pitfalls surrounding gaming convergence, sports betting, new trends and developments in emerging and European jurisdictions, Think Tank seminars covering IT, digital and security, the first ICE Tribal Gaming Seminar and the high-level Asia Breakfast.

or many of us working in the gaming industry - be it as a content developer, salesperson or indeed media journalist - trade shows often come around (and finish) so quickly that it is often difficult to take stock of their importance in the wider context of the markets these events serve. Once the show is over, contacts are collated and order books are worked through, and before long it’s back to business as usual. Many would state that trade shows themselves are ‘business as usual’ in the sense that every year our calendars are highlighted with four, five or more key business trips, around which the rest of our working life (and, often, personal life) is planned. Yet regardless of whether it is the fleeting nature of these shows or the fact that they occur with such regularity, they remain at the very heart ofthe business strategy. From the major international expos to the smallest of industry gatherings, trade events are modern-day marketplaces, and with that lenses through which one can judge the state of the market in question. ICE 2014 was the first trade show in some years where this point really rang true. From the record attendance figures and expanded conference programme to the growing exhibitor numbers across a range of sectors and the bewildering array of new innovations on the show floor, this year’s ExCeL event truly reflected the global gaming industry’s renewed focus on innovation. Reactions to the show generally ranged from the positive to the triumphant. “There is still a long way to go, but the worst seems to be over,” one exhibitor told me. “This year’s ICE was our most successful show ever,” said another. Both on the show floor and in the conference rooms, the mood in London this year was upbeat. And while nothing can guarantee that this will be carried across to the next trade show you might attend, a review of ICE highlights exactly why the gaming industry remains at the leading edge of innovation.

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Report

ICE 2014

NOVOMATIC GROUP OF COMPANIES

JCM GLOBAL

Novomatic’s product innovations a big hit at ICE 2014

JCM Global ‘better, smarter, faster’ at ICE

Austrian gaming giant Novomatic recorded a hugely successful show presentation at this year’s ICE Totally Gaming. ovomatic set the standard at ICE Totally Gaming with a huge array of innovative products and solutions including more than 50 new game themes plus new cabinets, new jackpots and major technical solutions. With a new floor layout at ExCeL this year, Novomatic, the show’s largest exhibitor with a vast 4,500sq.m of floor space, took the show’s most prominent position by occupying the central south hall from its visitor entry points and along the entire depth of the hall. That huge space was, of course, necessary, as the Austrian gaming giant brought a wide range of its subsidiary companies to London. The Astra Gaming Group - which comprises Astra Games, Bell-Fruit Games, Empire Games, Gamestec and Mazooma Interactive Games - welcomed visitors at the entrance, then Admiral Sportwetten, JVH, Eurocoin, Octavian and Novomatic Gaming Spain stood shoulder to shoulder alongside a dedicated online gaming area that featured Greentube, iGaming2Go and the latest member of the Novomatic family, Betware with its online lottery solutions. The main booth section featured the full range of gaming innovations from Austrian Gaming Industries (AGI), including an extended roulette area, new cabinet presentations as well as jackpot, game and casino management as well as cash handling system launches. One particularly exciting display was the first ‘live’ showing of NBS, the Novomatic Biometric Systems. Together with the AGI team, representatives from many of the Novomatic Group’s subsidiary companies from around the world came together at ICE, covering Europe, Asia, Latin America, the US and Africa. Each of these teams met existing customers, made new contacts and revealed exciting new product innovations such as new cabinets, new systems and new games as well as games compendiums. To prove that it is possible to succeed beyond success came the Novostar VIP. The latest evolution of the world-beating Novostar slant top cabinet is now designed into the VIP configuration to bring the biggest

30 | casinoreview March 2014

I Pole position: Zane Mersich, chief executive officer at Astra Gaming Group, Max Lindenberg, marketing and business development director for Novomatic, and Jens Halle, managing director of AGI. Halle poses with a lifesize cut-out of Niki Lauda, three-time Formula-1 World Champion and entrepreneur, who recently agreed a long term co-operation with the Novomatic Group

Novostar VIP

slot gaming attraction onto the gaming floor. Retaining the unique ‘flip screen’ feature of the original Novostar, this VIP cabinet is further upgraded by a giant 46-inch upper screen positioned at the best ergonomic distance for supreme game play. With new additions to the Novo Line and Coolfire II game compendium ranges, Novomatic’s new Superia Games game mixes as well as a plethora of individual game titles, were right at the forefront of the group’s ICE presentation. More than 50 new games titles a new record for Novomatic - were presented at the London show either as single games or in sophisticated multigame mixes. Among them are dedicated themed slots that are an ideal fit to create themed jackpot banks with the Marilyn Jackpot, the Elvis-themed Real King Jackpot or brand new the Ancient Egyptstyle Kingdom of Ra Jackpot. Also the new hybrid jackpot Jewels Factory celebrates its premiere in London - pioneering the first time ever combination of a Community Jackpot and Mystery Jackpot all in one product. The evolution of the original Pinball Roulette, meanwhile, was staged at ICE with the Panther Roulette and Panther Roulette II.

And on the gamingtechnology front, ICE 2014 saw the live public debut of the company’s long-running Biometric Systems project. “Biometrics are the ultimate tool to progress the unique identification of an individual, and Novomatic has developed Biometric Systems to facilitate a modern approach to contemporary demands in and beyond the gaming industry,” the group said. At ICE, the Novomatic Biometric Systems consisted of a modified fingerprint scanner, a local server and, in order to link multiple sites, a central server. Jens Halle, managing director of AGI, underlined the importance of this year’s ICE Totally Gaming: “The show organisers deserve congratulations for an excellent event. The new floor layout was a great improvement and we greatly appreciated the new record attendance that the show set - particularly in view of the transport difficulties that existed in London for two of the show days. “Most importantly, ICE was the showcase for a huge variety of new product innovations from Novomatic, and the response that we received from visitors was both extremely positive and highly encouraging.”

n addition to promoting its futureproof iVizion bill validator and Dynamic Network Applications (DNA), JCM Global showcased its new EBA-40 validator at ICE 2014. The next-generation EBA - or Eurpean Bill Acceptor - is a plug and play upgrade from the EBA-3x, which remains one of the most widely used bill validators in its class in central Europe. The state-of-the-art sensor technology captures 10 times more precise data and twice more numbers of data from each banknote, providing the best security against counterfeits in its class. The optional bar-sensor module allow ticket-in, ticket-out (TITO) acceptance, which makes EBA-40 a perfect choice for the VLT applications. In addition, the faster processing speed and the industry’s best anti-fishing mechanism of the EBA-40 bill acceptor ensure the unbeatable cost-performance ratio and the longlasting customer satisfaction. “We presented this brand new bill validator at Ima in January,” said Michaela Drews, marketing coordinator for JCM Global. “One of the best things about it is that operators who use the a previous EBA model can easily take in the EBA-40 because it has exactly the same dimensions.”

Payam Zadeh general manager for EMEA and Michaela Drews, marketing coordinator for JCM Global

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CTC HOLDINGS / EURO GAMES TECHNOLOGY / JCM GLOBAL / KONAMI GAMING / NOVOMATIC GROUP OF COMPANIES SUPPLIER NEWS: JW@SJC.CO.UK

KONAMI GAMING

Konami Gaming: bigger and better at ICE 2014 ICE 2014 added further momentum to the global expansion of Konami Gaming and Systems. CE 2014 provided the first opportunity for Konami Gaming to show Podium Goliath in Europe. The large-sized video slots cabinet is an up-scaled version of the popular Podium cabinet, and supports multiple video slots series. “Podium Goliath is an oversized cabinet that allows us to fit both of our K2V and KP3 platforms inside, so all of the games that you could play on the

standard Podium now get this amazing presentation,” said Steve Walther, product management director for the group’s Games division. “We are seeing a significant amount of performance lift in venues that have this on their floor.” In addition to the Podium Goliath, a wide variety of Konami products were put on display, including the new multigame series cabinet Selexion, which fea-

tures a touchscreen for choosing between up to 10 game titles in a single cabinet. Other products included the linked progressive-compatible new machine Dragon’s Victory, and the new Mystical Merrow machine. On the systems side, Konami’s much-applauded Synkros was also displayed. Synkros is capable of managing slot machine data, customer information and

accounting – all in real time. Analysis of this collected data then provides the casino management company with a useful marketing tool. The Konami Group works throughout the world’s casino markets from the Americas and Southeast Asia to Australia and New Zealand - to produce and sell casino devices and provide related services. Konami holds a total of

EURO GAMES TECHNOLOGY

357 gaming licences worldwide, and is the only Japanese company with practical experience and knowhow of international casino device production.

Matt Reback vice president of marketing, and Steve Walther, product management director for Konami Gaming

CTC HOLDINGS

EGT creates a lasting impression at ICE resenting its latest innovations from one of the top 10 largest stands at ICE 2014, Euro Games Technology (EGT) gladly supported the ‘sensational’ tagline of this year’s London gaming expo. “Our stand was bigger than ever this year and we enjoyed a constant flow of people,” said the company’s Silvia Mincheva. Almost all of the machines on the EGT booth are new ones, and we presented new products from every gaming division, including cabinets, games, interactive, multiplayer and mobile solutions and jackpots.” The three brand new themed

EGT’s Silvia Mincheva

jackpots from the company’s Premier Series of products - Egypt Quest, Diamond Life and Cat 4 Cash - made an impressive debut at the show. The Premier Series has also been complemented by new hardware and software additions. EGT presented the refined Premier Slant Top and Upright cabinets, which attract players with ambient RGB illumination alongside the machine. The EGT Premier Multigame selection, meanwhile, has been expanded with the Premier Multi 5, with a choice of 44 games and the Poker Multi Premier, which offers

10 poker games. ICE 2014 also became the scene of a major breakthrough for the Multiplayer Solutions by EGT. Presented in the Stork terminals, three new multigames were unveiled at the show, as the company seeks to provide unlimited choice and freedom of play. The Premier Roulette on the EGT booth grabbed the attention with its new elegant and modern design. Complemented by a brand new four-sided statistics display, the Premier Roulette scores with a choice of a single or double-direction wheel. Vladimir Dokov, EGT’s managing director, said: “We are proud to be recognised as one of the companies with most rapid growth in the global gaming market. EGT is constantly applying new technology and market knowledge to refine our products. As a result, EGT develops high quality gaming solutions of almost every gaming division. “Our success at ICE has been visible for everybody and I can predict an even increased market presence for the company in 2014, followed by an excellent ICE show next year.”

Edvins Lobins (centre-right) and the CTC Holdings team

CTC toasts 10 years at ICE

CE 2014 marked CTC Holdings’ 10th consecutive year exhibiting at the London show, and the Latvia-based live casino equipment group said the event remains the most important expo of the year. “Our main markets are Europe and Africa, therefore all our existing and new customers attend the event,” explained Edvins Lobins, chairman of CTC. “The Tube strike didn’t help, but on a positive note the organisers’ decision to put similar companies in one cluster was a brilliant solution.” CTC specialises in turnkey casino projects, and Lobins said the company received some orders from its cus-

tomers in Africa during ICE 2014. “Our AR displays drew a great deal of attention, especially our new Hybrid LED display, which combines inexpensive and proven technology with new multi-media capabilities. We now also offer now tables fully compatible with SHFL chippers and shuffle machines. “In 2014 we expect to continue business with our corporate customers Olympic Entertainment Group, MSC, ZPR and others. We also hope to expand our presence in Africa, where we already have customers in more than 10 countries. We just have installed a new printing machine for printing table layouts.”

March 2014 casinoreview

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Report

ARISTOCRAT TECHNOLOGIES / GAMING STANDARDS ASSOCIATION / PATIR DESIGN

ICE 2014

SUPPLIER NEWS: JW@SJC.CO.UK

ARISTOCRAT TECHNOLOGIES

Aristocrat lights up ICE The depth and breadth of Aristocrat’s portfolio of products for the EMEA region supports its customers’ ever-increasing range of requirements. Fittingly, the company reported record-breaking sales opportunities at this year’s ICE Totally Gaming expo. ristocrat Technologies staked a firm claim to steal the show at this year’s ICE exhibition in London, putting on a floor to ceiling multimedia extravaganza housing a wide array of new gaming solutions. “We were simply overwhelmed by the superlative feedback from customers, competitors, organisers and industry aficionados alike,” said Pedro De Matos, general manager of Aristocrat in the EMEA region. “Perceived as the most vibrant, energetic and innovative

showcase amongst the two halls, Aristocrat’s explosive line-up of new games proved a sensational hit with record-breaking sales opportunities building up from the very start to the final 15 minutes on day three.” Aristocrat’s key ICE highlights included the introduction of new, entertainment-based and universally recognised game licences, presented in unique centrepiece attraction formats. Linked games included Wonder Wheels titles Batman Classic TV Series and Superman The Movie, Tarzan of the Apes

Donal Maguire, European sales director for Aristocrat

MVP and Sherlock Holmes Hybrid Stepper, along with standalone games including The Rolling Stones and Flashdance. The company also launched the E-Series entertainment range, with a strong and increasingly engaging product roadmap spanning six families and 14 games this year. ICE also witnessed Aristocrat’s introduction of widescreen Multigame and the enlargement of the group’s core SAPs range: three new games under the Jackpot Reel Power theme.

Aristocrat arrived at ICE with EMEA’s largest ever range of new linked jackpot games, including Cash Express Gold Class, Dragons on the Lake, Tarzan of the Apes, Batman Classic TV Series, Superman The Movie, Sherlock Holmes. “The concept of ‘explosive gaming’ is by no means a notional line we followed for a one-off trade show,” said Donal Maguire, European sales and marketing director for the company. “The high levels of global R&D investment made by Aristocrat over the last 18 months

PATIR DESIGN

GSA

Patir’s Cobra crowned king at ICE

Ground covered in London for GSA

he visually stunning and technologically advanced Cobra gaming chair took centre stage on the Patir Design booth at this year’s ICE Totally Gaming event. Designed to resemble the mesmerising reptile, the Cobra was developed for VIP gaming areas and comes complete with a range of technological features such as integrated buttons and speakers. Speaking at ICE, Suleyman Yilmaz (pictured), export manager for Patir, said: “The show has been very busy, as usual. London is one of the most attractive shows for everyone in the industry, including ourselves. “Our booth has been busy with both existing and new customers, and the response to the Cobra has been unbelievable. We have four Cobras on our stand, another four on the Novomatic stand, one on the Apex booth and another six with Amatic. Similar interest

T was also generated by the product at the recent Ima show in Germany.” While Cobra could be considered something of a niche product, Yilmaz said that casino operators are increasingly choosing to develop VIP areas for their best customers. “The Cobra fits perfectly with these areas and help give VIP guests the feeling that they are special. We will see these small areas appearing in a lot more casinos over the next couple of

32 | casinoreview March 2014

years.” Looking ahead, Yilmaz said Patir will continue to work closely with gaming product manufacturers in order to develop the best casino seating options. “You have to work with manufacturers of gaming equipment very closely to find out the best position for comfortable seating,” he stated. “A comfortable gambler will sit for longer and play for longer. This, of course, is very important.”

he presence of the Gaming Standards Association at ICE was not confined to its own stand. Many of the machines on display across the ExCeL centre were utilising the GSA’s awardwinning standards. “For the last 15 years, we have been fortunate to have assembled a consortium of the industry’s leading suppliers and operators to create standards that have moved the industry forward, and the show floor is a showcase of our members’ hard work,” said GSA president, Peter DeRaedt. With so many of it’s customers in one location, the GSA understood that it was vital they be present. “It’s an important opportunity for us to be available to our current members to answer questions, give advice, and to be available to speak to their potential customers

are breaking through every single product line we now put out.” Mike Alexander, Aristocrat’s sales and marketing director in South Africa, added: “The launch of E-Series has been a pivotal moment for the Southern African region. A plethora of exciting new gaming operations options and the momentum gained from our enhanced core games portfolio to energise the current install base all point towards an extremely exciting year ahead - for operators and, most importantly, the players.”

to help explain why GSA standards were used in product development and how that benefits the operator,” said DeRaedt. With internet gaming becoming an increasingly important sector of the gaming industry, the GSA was keen to highlight their new Online Gaming Committee. DeRaedt announced that the group has been formed to, “bring the same levels of standardisation and success to online gaming that our committees and standards have brought to land-based gaming.” “We have a very successful track record of helping advances happen through our standards, as was evident on the ICE trade show floor,” said DeRaedt. “Now we are putting that same effort to online gaming standards, and this is truly an exciting time, both for GSA and for developers.”

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Report

BALLY TECHNOLOGIES / GAMING LABORATORIES INTERNATIONAL

ICE 2014

SUPPLIER NEWS: JW@SJC.CO.UK

BALLY TECHNOLOGIES

GLI Adrian Halpenny, senior vice president of Australia and Europe and Laura Olson-Reyes, senior director of corporate marketing and communications for Bally Technologies

GLI looks back and pushes forward Gaming Laboratories International commemorated it’s 25th anniversary with a bumper ICE display that included details on their newly bolstered professional services division.

W Connecting your gaming world Bally Technologies showcased its world-class licensed brands, systems technologies, table game products and online cross-platform solutions at ICE 2014. isitors to either of Bally Technologies’ two stands at ICE Totally Gaming in London this year experienced exactly how the gaming group connects the entire gaming world through cross-platform solutions that give casinos a single view of their player in the casino, on the go and at home. “In the past four years Bally has earned more than 80 awards for innovation,” said Bally Technologies’ president and chief executive officer Ramesh Srinivasan. “We believe our new brands, platforms, and ability to provide a single view of the player will continue that trend.” At ICE, Bally presented dozens of unique game titles, including the world-class licensed branded games Titanic, The Magic of David Copperfield, Grease Pink Ladies, and ZZ Top Live from Texas, along with an array of cutting-edge systems technologies and industry-leading table products. “Bally is committed to serving the needs of the European market,” said Marco Herrera, vice president of Europe, Middle East, and North Africa. “From electronic gaming machines and proprietary

table games, to casino systems and online gaming, we are offering the most complete and dynamic range of products available in the gaming industry.” Titanic video slots by Bally deliver a fully interactive and cinematic experience centred on the iconic starcrossed lovers from James Cameron’s Titanic – one of the highest-grossing films in history. Featuring scenes from the film and music from the blockbuster phenomenon, Titanic integrates many of Bally’s proven play mechanics, two base-game mystery features, and three progressive jackpots including two minor mystery jackpots and one large top award. Classic rock meets modern slot play, meanwhile, as the famous American blues-rock trio delivers a host of bonuses, play mechanics, and progressives in ZZ Top Live from Texas. The game awards Just Got Paid mystery credit prizes or wheel spins to win credits or one of three freegames bonuses - Live from Texas, Sharp Dressed Man, or Cheap Sunglasses. “We are really excited about ZZ Top because the game is going to be launching

34 | casinoreview March 2014

as the band does a European concert tour, so it’s really great timing for us,” said Laura Olson-Reyes, senior director of corporate marketing and communications for Bally. Bally’s content for the Pro Series cabinets expands once again with a host of new games featuring engaging play mechanics, clever themes, and animated graphics that deliver an exceptional play experience. Featured at ICE 2014 were two new multigame suites, each combining four popular games into one versatile platform, as well as the new Game Xchange MultiGame, which offers operators the ability to change or add titles to the suite. Bally’s Take ‘n Play was also be on display at the ExCeL event. This new product enables players to take their game ‘on the go’ for the first time by playing a physical slot machine on the convenience of a tablet. According to the group, Take ‘n Play is the industry’s first technology that allows the same slot machine game to be played in more than one location by streaming the game content directly from the slot machine to a tablet.

orldwide testing authority Gaming Laboratories International (GLI) kicked off the celebration of its 25th year of business at ICE Totally Gaming. Staff from several of the company’s 21 locations were on hand to talk visitors through the history of GLI and its expanding range of services. “Whether you’re an operator, supplier or regulator, today’s gaming industry is like a global chess game, and it takes a long-term strategy to successfully navigate the nuances of regulations in landbased, lottery and online gaming,” said GLI Europe managing director Martin Britton. “Because we have 21 locations around the world, GLI is uniquely suited to assist companies and government agencies successfully accomplish their goals.” GLI offers a wide range of testing, inspection and certification services, setting the standards that operators and suppliers measure their machines by. At ICE’s World Regulatory Briefing the company’s expertise was on display, as vice president of government affairs and general counsel, Kevin Mullally spoke on common standards and regulator harmonisation. He returned to the conference room a day later to join the International Masters of Gaming Law as they discussed gaming convergence. With their reputation for gaming

James Illingworth, director of European business development (left) and Christie Eickleman, VP of marketing

standards already cemented, GLI’s representatives on the show floor were keen to introduce visitors to the company’s world class professional services. “GLI is so much more than just testing and our line of professional services is a prime example,” said Britton. “We have gathered together a selection of the world’s top professional services experts to help our clients successfully tackle their IT challenges, on time and under budget.” The company recently opened an office dedicated to professional services in Moncton, New Brunswick, Canada. The team is headed up by Gregory Doucette, who told ICE attendees that, “our professional services fit in process categories: project management, security, auditing, and training. GLI’s mission in the professional services arena is to apply our global capabilities and expertise across the entire spectrum of IT and business process, bringing incredible value to our clients, and we are confident we have the staff to deliver on that mission.” Visitors to the GLI stand were also informed about the company’s global field services, designed to help operators protect themselves in an increasingly interconnected market. These include physical and system risk assessments, communication testing, audit software and threat assessments.

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Report

APEX GAMING / TCS JOHN HUXLEY

ICE 2014

SUPPLIER NEWS: JW@SJC.CO.UK

TCS JOHN HUXLEY

TCS John Huxley celebrates an award-winning week at ICE TCS John Huxley made their mark on home soil as ICE Totally Gaming proved the company’s worth. Awards, honours and strong product kept the TCSJH standards as high as ever. he ICE show was a “fantastic success” for elite UK-based casino equipment group TCS John Huxley, as the group was overwhelmed by the positive response from visitors to the show. The company’s success at this year’s ExCeL expo was further enhanced when TCS John Huxley won the technology provider/supplier award at the International Gaming Awards. The Inter-

Champ 2, e-FX displays and A-Plus shuffler. The positive buzz on the show floor was experienced by visitors and exhibitors alike, with most delegates agreeing this was the best show for years. Cath Burns, TCS John Huxley Group CEO, said: “We were delighted to be at ICE to highlight not only our product innovations but also the changes we have been making as an organisation that bring major benefits to our customers. We continue to grow our product development team, which is set to double this year and the continued evolution of our product strategy has us transforming our traditional

national Gaming Award was the group’s second technology award within the last six months. ICE 2014 provided the ideal showcase for TCS John Huxley to feature its key leading edge products such as Gaming Floor Live, Supernova Progressive and electronic table games. Also on show were industry benchmark products including traditional gaming tables, roulette wheels, Chipper

portfolio into enabling technology devices, which sees some very exciting innovations being launched in the coming months.” Tracy Cohen (pictured), director of marketing for the group, added: “We had a great show at ICE 2014. Not only was it very successful in terms of customer response and interest generated around our products, but we kicked off a great week by winning the technology provider/supplier award at the International Gaming Awards. There was a great feeling of positivity which was highlighted by the quality and quantity of visitors and the general buzz on the show floor.”

APEX Klaus Gradinger (left) and Martin Carpella

Apex premiere universal casino system Apex extended its offering at ICE with the intention of crafting the total casino experience, including on-site mobile gaming and a new addition to their Quikker title.

he selection of products on the Apex stand at ICE 2014 covered virtually every sector of the modern gaming industry, running the gamut from land-based games to mobile titles through online slots and electronic multiplayer cabinets. At the show, the company positioned their slot machines front and centre, each running a range of proprietary software. The most notable games on show formed the new Multi Magic 6 package, which garnered strong interest from expo attendees running on the

company’s well known Pinnacle cabinets. Apex’s proprietary automatic table game Quikker was also on show at ICE in a brand new configuration. The game challenges players to bet on the outcome of two cards in a combination between blackjack and roulette. Where it had previously only been available as a standalone, operators can now run Quikker integrated with roulette, baccarat and sic-bo. This has become possible thanks to the configurable nature of the Apex Player Station, which can now accommo-

36 | casinoreview March 2014

date as many terminals as required. Operators can add new stations as their demands grow and can even support up to four linked roulette wheels, both live and automatic. Once hooked up, players at an Apex station can choose any combination of roulette wheels to play on at one time. These roulette games can also be linked with the Pinnacle cabinets, allowing operators to provide their customers with even more choice about what to play and where to play it. This theme was enhanced by the introduction of Apex Mobile Slots. The software was appear-

ing at ICE for the first time and allows patrons to play their favourite slots games using tablets in any location on casino premises. The games are server-based and can report back immediate results to venue staff, allowing for absolute control and resistance against manipulation. The devices come equipped with RFID technology, allowing players to move credit from their tablet directly onto a table or to acquire quick payouts. Customers are also able to use the company’s iDrop redemption terminal in tandem with the

tablets to print out a barcode ticket to use in the casino’s landbased slots. Currently, Apex has made its top fifteen games available on the service, with many more to follow in the coming months. “Our Pinnacle cabinets and games have been the cornerstone of our success,” said founder and CEO of Apex gaming, Johannes Wessengruber. “Now with the Apex Mobile Slots and Apex Player Station, we cover all segments of gaming. This was recognised by our visitors to whom I send my thanks for coming to see us.”

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Report

GAMING SUPPORT / GTECH

ICE 2014

SUPPLIER NEWS: JW@SJC.CO.UK

GTECH

GTech demonstrates cross-sector capabilities at ICE From more traditional land-based casino gaming to the latest in online and mobile sector innovations, GTech demonstrated exactly how it is bringing gaming to life in 2014. Tech, the leading provider of landbased, onling gaming, lottery and play-for-fun solutions across all channels for regulated gaming operations worldwide, showcased its comprehensive range of interactive solutions at ICE Totally Gaming 2014. Following its successful presentation at G2E Las Vegas, Sphinx 3D, a thrilling Egyptian adventure featuring Gtech’s True 3D on the brand new Axxis cabinet, enjoyed its global launch at the ExCeL event. “From slot machines standpoint, our key highlight at ICE 2014 was Sphinx 3D,” said Sylvia Dietz, senior director of global marketing for Gtech. “Our stand also featured the global launch of Action Jackpots, a unique novelty product, offering four different progressive links tied into one single gaming machine.” Commenting on the suc-

cess of Sphinx 3D, Marcel Heutmekers, vice president of commercial gaming for GTech, said: “It’s amazing how much feedback we have been getting. The most recent A-List survey of leading operators around the world gave Sphinx 3D the title of most promising premium product in the industry. Our sales orders have reflected this.” “Diversity, which has been our main revenue engine over the last two years, continues to be strong,” Heutmekers added. “Operators who had a bit of a difficulty over the last few months are seeing signals of recovery, and are looking for engines that drive their performance.” Also at ICE 2014, GTech showcased its comprehensive range of interactive solutions, including its library of mobile content. The group also illustrated the player journey and content convergence from land-based slots

to desktop gaming, tablets and smartphones. GTech’s new poker platform was also displayed, along with its mobile poker for iPad tablets, featuring ergonomic thumb-based gameplay.” The group introduced two new casino systems solutions in Europe at ICE, with Rub4Riches providing an instant reward scratch card directly at the slot on the Crystal.net player interface, and JP2go, a standalone, turnkey jackpot system developed to boost machine play. “We were extremely pleased with visitor attendance in the spacious casino systems area on the GTech stand at ICE,” Fivos Polymniou, sales director of Gtech’s casino systems division, told Casino Review. “There was constant flow of customers on our booth even though the show area was enlarged this year. “ICE provided a number of new opportunities despite

the economic challenges experienced in some areas of Europe. We had an excellent turnout of customers reinforcing their current systems with additional features and software enhancements such as Rub4Riches as well as Crystal.net player interface and other Galaxis upgrades.” Polymniou added: “We launched a new standalone, turnkey jackpot solution at ICE this year: JP2go. The JP2go package proves appealing to a wide range of operators in the European market for mystery, progressive and wide area jackpots with a signage package for an all-inclusive per-machine price. The lucky winners of our JP2go product licence promotion on the booth were Olympic Entertainment Group and ZPR, the largest gaming operator in Poland with more than 100 gaming halls, 12 casinos and bingo halls.”

Sylvia Dietz, senior director of global marketing for Gtech, and Marcel Heutmekers, vice president of commercial gaming for the group

Fivos Polymniou, sales director for Gtech Casino Systems

GAMING SUPPORT

Jackpot celebrations for Gaming Support t was easy to guess the byword for Gaming Support’s confetti-covered stand at ICE 2014. “Our “Celebration” theme proved to be appealing to the public and we were pleased to attract a crowd,” said CEO, Don Baugh. “It successfully expressed the general purpose of all of our products, which is in sharing the winning experience to contribute to a festive mood in gaming venues.” With a portfolio that

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included both flashy signage and high-tech jackpot controllers, Gaming Support attracted a wide range of operators to their stand, all looking to enhance engagement on their casino floor. “This year’s exhibition was very well attended, we clearly noticed an increasing number of visitors,” said Baugh. “We have received a lot of attention on our new Jackpot Controller, Media Player and, of course, our

Interactive Signage.” Although products such as the Bonus Box and Media Player Lite attracted strong interest it was the seamless blending of these elements that really grabbed visitor’s attention. Gaming Support were also keen to highlight the potential of their jackpot controllers. These low profile products could well have been lost amid the confetti cannons and bright signage, but staff on the stand

were quick to direct attendee’s attention towards these powerful devices. “We invited people to talk about the possibilities of their individual features rather than explaining their operation,” said Baugh. “Usually these products never get much spotlight attention and are hardly visible to the public but they are important for a flawless organisation of the games in a casino.”

www.patir.de info@patir.de

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Report

IGT / INTELLIGENT GAMING

ICE 2014

SUPPLIER NEWS: JW@SJC.CO.UK

IGT

INTELLIGENT GAMING IGT’s Will Foster and Michelle Schenk with one of the group’s latest premium titles, Jenga Tower of Money

Intelligent Gaming to accelerate Premo platform expansion Technology award nominee Intelligent Gaming showcased its Neon and Premo systems at this year’s ICE Totally Gaming.

P Premium licences and enhanced content come ‘out of the blue’ IGT’s eye-catching new logo and brand positioning made their European debut at ICE 2014. ot on the heels of the much-applauded release of James Cameron’s Avatar Video Slots and James Cameron’s Avatar Treasures of Pandora, IGT took to the ICE showfloor with numerous product debuts this year. Making its world debut was Venture to Never Isle. Housed on IGT’s CenterStage Duo, this game transcends a timeless tale while offering players symbol-driven gaming entertainment with big win potential and captivating bonuses. The US-based group’s Jenga Tower of Money, meanwhile, was another thrilling premium title to debut at ICE. A familiar title inspired by the fun-for-all classic game of stacking and crashing, this game has both entertaining base game and bonus play. IGT continues to takes skill-based gaming to new heights, with the debut of Aladdin Prince of Adventure Video Reel Edge. In bonus

rounds, players can travel through the air on a magic carpet, collecting coins and earning a bonus award. Prowling Panther, Winner’s Choice and Sumatran Storm also drew the attention of delegates at this year’s ExCeL show. IGT’s new Enhanced Content feature also made its European debut at ICE, with Back to the Future – Back in Time, Bridesmaids and Sex and the City Platinum. All three Premium game titles allow new content to be seamlessly ‘unlocked’ over time, introducing an all-new player experience without having to change themes or cabinets. Explaining the advantages of its Enhanced Content feature, Will Foster, product manager for IGT, said: “One of the key issues that often comes up is that game performance on the floor can start to trail off. Operators have spoken of the need for something to refresh it. Now, rather than

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have to wait for a new programme approval or new hardware to come in, the Enhanced Content is essentially two games launched under one programme. Operators are able to open up the second game content easily, so it becomes a multigame box, where the players can choose the original content or the new content.” While delegates flocked to the IGT booth to witness demonstrations of the company’s sbX casino management solution, Cloud service and Remote Game Server, attention was also fixed on Avatar. “Avatar has now been released in our domestic market and it is doing very well in terms of revenue averages,” Foster said. “We recently placed the Duo version on test in Italy, and initial indications suggest that performance has been two or three times the average. We have the Avatar licence on a global basis and will be targeting all major markets over the coming months.”

laytech company Intelligent Gaming inhabited the landbased casino beside the London bus in its parent company’s eye-catching multi-tiered booth at the ExCeL Centre. Since Playtech announced its acquisition of Intelligent Gaming at ICE 2011, the landbased casino systems subsidiary has significantly expanded its team, broadened its product range and dramatically increased its market share. Chris Dempsey, Intelligent Gaming’s director of consulting, reflected on a very successful show for Intelligent Gaming. “It was clear from the feedback from everyone who experienced the multi-channel tours that our booth demonstrated Playtech’s unique position as a leading provider of systems and content across all channels,” he said. “For our part, Intelligent Gaming increased our focus on the Premo mobile gaming platform, which was launched at ICE 2013. For the first time we showed both fixed and mobile tablets with our latest range of content, including live and RNG Roulette and Baccarat as well as our first public viewing of our dice and bingo content.

David Zelen (left), EMEA sales director for Intelligent Gaming, and strategic account manager, Tom Arnold

We expected a lot of interest but the response was overwhelming. The platform is robust and now proven in a live environment. Following the reception at ICE, we will move more quickly than planned to expand the content to include slots, sports betting and additional table games.” “Existing and potential customers alike were suitably impressed with the progress we have made with Neon, which confirmed its status as the fastest-moving casino management system on the market. I am proud to say that despite our growth, we are still able to focus on the individual needs of each of our customers.” Dempsey added: “As always ICE was a great event for Intelligent Gaming, not least because it enables us to showcase our solutions in leading casinos such as the Hippodrome, Aspers and Mayfair’s high-roller casinos. Our team will be very busy over the coming months preparing for some very exciting projects which we will be announcing over the coming months and as always, we will be looking to expand our team with more industry and technology experts.”

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Report

COPAQ / WMS GAMING / ZITRO

ICE 2014

SUPPLIER NEWS: JW@SJC.CO.UK

WMS GAMING

COPAG

Player focus remains key for WMS

Retail and casino products perform well for Copag

t ICE 2014, WMS Gaming presented the power of the merger of Scientific Games with WMS and Williams Interactive, and demonstrated how this combined organisation provides a platform for world-class gaming hardware, content and service. The combined efforts of Scientific Games, WMS and Williams Interactive offer customers around the world a wider range of products and services, and a deeper catalogue of innovative content. The larger scale of the combined organisation serves to position them as a global leader within the industries of lottery, casino and online gaming - offering a complete gaming solution that can be leveraged to reach players where they are, when they want to play, and in the channel they choose. “The merger with Scientific

Games is helping to expand our international focus,” said Robin Littleworth, senior director of game development for WMS Gaming. “Scale is the name of the game.” WMS Gaming continues to lead the way in terms of visual content and player engagement through the next-generation Cpu-Nxt 3 operating platform and the Blade and Gamefield xD cabinets. In addition to a number of new game families on the platform, WMS also showcased an extensive library of iconic licensed games, including the Beetlejuice and Clue brands, along with new content for player-favourite brands such as Monopoly, The Wizard of Oz, Willy Wonka & the Chocolate Factory and Jackpot Party themes. In addition, the three-reel mechanical Blade Stepper cabinet was also showcased in London for the first time.

C Robin Littleworth, senior director of game development for WMS Gaming

This cabinet was designed and created to combine the authenticity and thrill specific to classic mechanical reel play with features that fit seamlessly on today’s casino floors. The Blade Stepper cabinet offers a pure gambling experience centered around winning jackpots. “Based on the Blade video, the Blade Stepper is intended to help reinvent the gaming space previously occupied by machines such as the S2000 and S6000, but still giving players easily recognisable

mechanics,” added Littleworth. Through a stronger focus on local needs and preferences, WMS presented its five local area progressive themes - Colossal Jackpots, Winning Fortune, Monster Progressives, Jackpot Party Progressive Deluxe and Treasures of the World. These games, as well as the Game Chest MultiGame series, have been created with the particular needs of our international customers at the heart of their development.

ZITRO

Research and development pave the way to the international market for Zitro

here’s no doubting that Zitro’s stand, with its avant-garde design, captured the attention of the crowds at ICE Totally Gaming. Inside, attendees found a wide array of new video bingo games running on the latest generation of the company’s Blackwave platform. After passing through the stand’s ‘shower curtain’ entrance, visitors were greeted with Zitro’s latest technology. Over the past twelve months the company has invested heavily in its R&D team and the fruits of their labour were in full

effect. New games such as Jack and the Beans featured eye-catching 3D animation and had been translated into multiple different languages. “Our staging at ICE has

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positioned us within the top companies regarding global acknowledgement and reinforces our steps in accordance with the company’s international expansion strategy,” said the com-

pany’s international VP, Iain London. From its base in Barcelona, the company has been preparing to sell its games to more international markets and an appearance at Europe’s biggest trade show formed a large part of that strategy. “We are making firm advances on the path towards internationalisation and at this new edition of ICE London,” said Zitro’s president Johnny Ortiz. “We have exceeded expectations regarding the accolade of our product, which confirms we are on the right track.”

asinos and poker players around the world recognise the Copag name as one of the finest card brands in the world, so it was no surprise to see them setting out their stall at Europe’s biggest gaming show. “Europe is a very big market for us and year by year we are increasing our participation,” said Rafael Lisboa, international key account at Copag. “We trust we can increase even more as we have what the customers want, the best playing card for a very competitive price.” The Brazilian company had a range of different playing cards on display during the show, with their line of casino products being particularly well received. “Without any doubt the most popular product was our 100 per cent plastic playing cards for casino,” said Lisboa. In addition to their large-scale business customers, there was interest from those attendees looking to stock retail decks or simply to purchase cards for their own use. “We exposed some retail products,” said Lisboa, “the EPT Pokerstars and the Brazilian line were very much appreciated.” Every exhibitor at this year’s ICE was concerned about the potential for strikes on the London Underground to adversely affect visitor numbers.However, as Llisboa explained: “The first day was completely full,” said Lisboa. “When the strike started I felt the attendee numbers decrease, but even with this I believe ICE was amazing. Copag had a successful ICE this year. We had a lot of customers from all over the world and I can say that I am very pleased.”

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Report

ICE 2014

GAMING PARTNERS INTERNATIONAL

AMATIC

Security focus from GPI GPI’s latest range of plaques and jetons are not only counted among the industry’s most aesthetically pleasing - they also feature a pioneering range of security features that are easy for dealers to authenticate, but very difficult to replicate. ith an increasing global focus, Gaming Partners International (GPI) has been working hard to develop new security features that are easy for casinos to authenticate, but very difficult to replicate. Kirsten Clark, senior vice president and chief operating officer for GPI’s Asia division, was demonstrating the numerous security features of the company’s innovative B&G J3 Jeton at ICE Totally Gaming 2014. Featuring multiple edge spot designs and expanded decal options, the new J3 hybrid jeton picks up where the company’s J2 jeton left off. After enhancing the aesthetic appeal of its European-style jetons with the easy handling of American-style chips, GPI’s new J3 jetons offer greater flexibility in edge spot designs that provide easier identification in stacks or racks. “This product is a huge innovation for the industry,” Clark said. “One of the critical things to understand about this prod-

uct is that, yes it’s a chip, but it’s made using the same materials as our plaques. “The manufacturing process that we use for our plaques is extremely particular and very unique. To date it’s never been successfully counterfeited - so our traditional plaques and jetons are very secure, and perceived as such by the industry.” Clark added: “One of our core customers in Asia asked us to consider developing a jeton that was shaped like an American-style chip but could have edge spots and some of the more functional, useful features that are possible to include on American chip decals. That’s where the J3 came in. With these criteria in mind, our development teams set out to create a product that could be as aesthetically pleasing as our renowned plaques and jetons, but also would be easier to handle and easier to identify. “Consequently, if a player is betting a stack of J3’s that includes multiple denomina-

tions, the dealer can tell. Using the J3 edges alone, the dealer can identify different denominations, just like they can with plastic chips. This is a very critical efficiency and identification tool. “But we’ve taken it quite a bit further,” said Clark. “So, not only have we come up with a form factor that is shaped like an American-style chip and that has the higher perceived security of plaques and jetons, through expansive R&D we have created some very innovative technology applications to increase the level of security as well. “We’ve added the ability to include Laser Track in the J3 edge spots, making it possible for dealers to quickly validate the chips in stacks or in the chip

tray. We’ve also developed a method to combine RFID tags with EM theft detection and have expanded this offering beyond the J3 to all of our currency products. “Another thing that we’ve developed that affects both our jetons and our plaques is the ability to add a security feature to the gold lace,” stated Clark. “The gold lace alone is a great security feature, but we have now developed the ability to have laser track in the lace itself. The market feedback we’ve gotten for the J3 and these additional security feature innovations has been really positive, and we’ve already shipped multiple orders of the J3 to key customers throughout the AsiaPacific region.”

FOURNIER

Fournier defies quiet location to unveil new table technology laying card specialist Fournier reported a successful show at this year’s ICE Totally Gaming show. “The first day was excellent,” said export area manager, Roberto Perea (pictured left), “but the second day suddenly there was a drop. I don’t know what happened, but this area was quite empty for a long time.” “Since last year ICE have tried to create poles,” he said.

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“Where most of the live gaming operators have been concentrated doesn’t attract as many visitors.” However, those visitors who made their way were granted a glimpse into the company’s new technological venture. At ICE, Fournier was showcasing its electronic baccarat product, which reads playing cards as they are being dealt. “That offers security and integrity to the game of baccarat,” said Perea

This product marks the beginning of a fresh focus for Fournier, as they develop electronic devices that complement traditional casino games. The motivating factor behind their new direction is to reduce the risk of human fault. “There are mistakes and there can be cheating,” said Perea, “so our idea is to offer more integrity by focussing our technology on limiting the possibility of cheating and error.”

Amatic Now makes immediate impact

matic debuted a brand new stand at ICE Totally Gaming this year, buoyed by the potential of their Amatic Now system. The software package’s primary goal is to deliver an optimal gaming experience across an entire casino floor. Amatic Now allows the slot machines to run the digital roulette games and the roulette betting terminals support an extensive slot game library, meaning that wherever a player is they can play their favourite games on demand. Once players have left the casino premises they can also return to their favourite titles via online and mobile clients, as Amatic’s new software aims to seamlessly blend multiple gaming experiences. “Continual investment, creating and implementing new ideas and strategies, making future-oriented gaming products as complete solutions - that is what we do,” said founder and CEO Reinhold Bauer, “and our new brand Amatic Now symbolises this.” The software supports multiple games at a time, enabling users to wager on multiple roulette wheels simultaneously or play slots games while at the roulette wheel. ICE saw a number of new titles added to the platform, including Casinova, Lady Joker and Magic Owl. The company’s games were running on their own custom built hardware, including the Performer Casino C22 terminal and Performer Grand Arc cabinet. “This was surely one of the best ever shows for us,” he said.

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AINSWORTH / AMATIC / FOURNIER / GAMING PARTNERS INTERNATIONAL / MERKUR GAMING/ SUPPLIER NEWS: JW@SJC.CO.UK

MERKUR GAMING

ICE delegates seek ‘Made in Germany’ quality Merkur Gaming demonstrated exactly why it lives up to its tagline of being ‘Die Spielemacher’ The Game Maker – at this year’s ICE exhibition, with innovations across the AWP, casino and VLT sectors aplenty. rom country-specific multigames to the latest server-based gaming innovations, Merkur Gaming presented its full range of products and services at the 2014 edition of ICE. The Gauselmann Group subsidiary showcased a whole world of innovations

for 2014 under the motto ‘more than just a game’. A highlight in the field of cabinets was the Avantgarde SLT. Its futuristic and linear design with luminous LED elements attracted attention due to its focus on style and class. A further highlight: the latest 3D games have already been inte-

grated into the Avantgarde SLT. Merkur’s well-known cabinets such as the Highflyer, Privilege Plus, Uno, Vision Plus, WB4 and the Evolution SL also remain popular due to their design, the company said. “Our product portfolio is tuned to individual coun-

tries, the long-standing international experience as well as the outstanding quality play a prominent role in our international success,” said Thomas Niehenke, COO of the Gauselmann Group. On the software side, Merkur has brought a revolution in the sector through

the All-In-One. This software for the server-based gaming segment allows complete networking of all business processes for slots, arcade and casino management, highlighting all functionalities of a business management system. Furthermore, the Merkur All-In-One offers the possi-

bility to initiate and control legal requirements for tax submissions via its public authorities management module. A further show highlight from Merkur Gaming was placed on server-based gaming and video lottery terminals (VLTs). The company was able to underline its position in Europe in the field of cash management. The company’s answer to simple and safe cash management is the Merkur Dispenser 100, which enables operators to optimise their machine cashflow. The further development of the dispenser 100 has resulted in the Merkur Dispenser Gold and the Merkur Dispenser 100 Plus Gold. The improvements refer to components such as a new and more efficient CPU, more storage capacity and more resistant components to guarantee a longer working life and minimise problems caused by dirt. Merkur Gaming responsible for the sales of AWPs and casino slots – was joined on the 800sq.m stand by two further Gauselmann Group subsidiaries: Blueprint Gaming, a leading provider of video gaming content in the UK market, and GeWeTe as manufacturer of change machines. Edict Ggaming, the specialist for online gaming platforms, exhibited on its own stand at the London show.

AINSWORTH

Modern products prove popular for Ainsworth

ustrialian game creator Ainsworth assaulted this year’s ICE expo with a dazzling array of new products, ensuring that its stand remained busy from open to close. Leading with innovation, the company promoted its new Premium Plus titles: Reels of Wheels, King Spin and Cash challenge. These games were all housed with the A560 Wide Boy cabinet, which features a 32 inch HD

screen and a unique multi wheel feature. This piece of exclusive design links five wheels to five wheels which spin to determine special wild symbols. Ainsworth also laid on a display of its newest link progressives, including Treasure Storm and Oriental Fortune. These were joined by new additions to the company’s GamePlus library, such as Quad Shot and Double Hit, among others. “With our continued com-

mitment for providing high performing, innovative and engaging games to the European market, Ainsworth really looks forward to an outstanding 2014 for all our customers,” said Scott Clarebrough, group general manager for strategy and development. Building on the success of their ICE appearance, Ainsworth has also confirmed a new multi-year deal with computer firm Quixant. The agreement will see the

British hardware developers provide Ainsworth with a supply of gaming platforms for use in their range of machines. “Quixant and Ainsworth have both experienced several years of strong growth and we are pleased to be extending this relationship,” said Danny Gladstone, CEO of Ainsworth. “Our A560 range of gaming machines is delivering class leading performance in jurisdictions worldwide.”

Chairman Len Ainsworth (left) with Jimmy Thomas, founder of Thomas Automatics

March 2014 casinoreview

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Report

ICE 2014

ADVANSYS

DRGT

Innovative technology draws a crowd for DRGT Advansys arrived at ICE ready to show visitors how floorscanner could be deployed to revolutionise casino management. fter making an impact around the world during 2013, Advansys returned to its home European market to display the results of months of innovation. A major feature of their display was the floorscanner system. Organised from a central server, the software manages all areas of the gaming floor, from the roulette wheel to the cash office. The product includes Advansys’ slotscanner and tablescanner system, which combine to provide a comprehensive method for

All encompassing software from Advansys operators to manage the accounting and cage for their slots and table games. Customers can also use this system to maintain the financial security of tables and machines, as well ask monitoring the need for maintenance. Alongside these basic functions, floorscanner can be outfitted with additional modules, depending on the needs of the specific venue. Operators looking to move to a cashless system can install a ticketing module for their slot machines, while those looking to boost player

engagement can allow Advansys organise their jackpots using local or wide area programs. At the show, Advansys demonstrated their systems by integrating them with hardware from SHFL and Abbiati. The interaction between the Easy Chipper Machine from SHFL and Player Tracking allowed for automated collection of bets made on roulette with 99 per cent accuracy. The company’s One2Six shuffler was also used to demonstrate how Advansys can monitor the

number of decks dealt at a table. A range of other software solutions from the Slovenian company sat alongside their floorscanner product, including Texas Hold ‘em poker tournament management system, Big Boss. Up to 99 different venues can be connected together, to build joint prize pools that allow for much larger payouts. Advansys has also integrated the product with a range of smartphone apps, enabling tournament managers to adjust settings on the fly.

nology’s revolutionary set of systems for a seamless multichannel players experience. Combining a casino management system, a money management system, a jackpot system, a remote game server and an online gaming system, The Big 5 offers a full range of sophisticated tools for both traditional and online business. The Rhino casino management system, also part of the The Big 5 suite, proved to be another hit offering of Casino Technology, impressing customers and visitors with a variety of attractive options and unique features. “Continuously developing its products and solutions, Casino Technology wins the trust of its customers and partners in Bulgaria and around the world again and again thanks to its customer-oriented approach and the team’s drive to meet in the best possible

way customers’ needs and requirements,” said Elena Shaterova, sales and marketing manager for the company. As his company celebrated 15 years of success at ICE 2014, Milo Borissov, founder, president and CEO of Casino Technology, was honoured with a special award from Gaming Laboratories International (GLI). Ian Hughes, vice president of global services for GLI, presented the award for sustained innovation to Borissov and his team at a dedicated ceremony on the ICE show floor. “Casino Technology has always been on the forefront working with the industry to promote professionalism and highest industry standards,” Hughes stated. “[The company] is once again demonstrating its innovative spirit by transferring its successful experience from land-based business to online gaming.”

CASINO TECHNOLOGY

Casino Technology celebrates 15 years of ‘GameOvation’ asino Technology’s participation at ICE 2014 in London passed with great success, as the company marked 15 successful years in the gaming business. New developments such as the Aurora upright slot turned heads with their innovative design and numerous features. The latest releases of the popular Gamopolis Highway and Gamopolis Multiskin series reaffirmed their position as a

market hit during the expo. A new range of the branded Penthouse slot games - Fruits of Desire, Chili Baby and Wet & Juicy – also debuted in London. The unique progressive Asian themed games Five Blessings and Dragon Pearls were among the other Casino Technology’s products demonstrated for the first time at ICE 2014. Special interest was drawn by The Big 5 suite, Casino Tech-

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ith its range of serverless systems on show, Belgian company DRGT enjoyed their busiest ICE ever. The company’s products are designed to reduce the barriers to entry for gaming operators worldwide, reducing day-to-day running costs by removing the need for full-time IT staff. This is achieved by removing the central server, so that if one machine goes down the rest can continue to run without issue. The system is already proving successful with over 200 casinos in thirty different countries currently connecting over 23,000 slot machines. The company also demonstrated a new range of products including a super-sized display and their new drScreen technology. The drScreen enables players to view and manage their accounts directly on the slot machine, with the video monitor becoming the information screen whilst a secondary display allows them to continue playing. This technology enables casino management to transmit inform, entertain and educate their customers on an individual basis as they play games in their venues. At their stand, DRGT were demonstrating the ability to show live sporting events integrated with a slots game, using drScreen. The software has been developed just in time for the 2014 World Cup and allows patrons to enjoy the one-off sporting action while continuing to play their favourite games. CEO Jurgen De Munck said: “The people we saw made sure that the ICE was truly sensational for us and gave us even more motivation to take our systems another step further.” Jean-Michel De Busscher (left) and Michiel van Dam

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ADVANSYS / ALFASTREET / CASINO TECHNOLOGY / CRANE PAYMENT SOLUTIONS / DRGT / SUZO-HAPP SUPPLIER NEWS: JW@SJC.CO.UK

ALFASTREET

CRANE PAYMENT INNOVATIONS

Alfastreet’s twentieth anniversary begins at ICE

Combined cash handling groups make UK debut

Alfastreet came to ICE prepared to celebrate their 20th anniversary with exciting new products presented in comfortable surroundings. 014 is an important year for Alfastreet, as it prepares to celebrate the twentieth anniversary of the company’s founding. Celebrations got underway at ICE Totally Gaming, with a raft of new products taking pride of place on the company’s plush stand. Some of Alfastreet’s best known products

stood side by side with newer creations, in a large display that captured both the past and future of their product line. Among the evergreen items being demonstrated was the R8 automated roulette wheel, which was linked into the SL single terminal. Mixing old with new, the R8 was also hooked up to Alfastreet’s newest single termi-

nal, the Wiky. This new device sports a larger screen than most other single terminals on the market and is designed to be ergonomically comfortable for the player. The company’s stand featured a sea of different terminals connected to a variety of games, including roulette, sic bo, baccarat and the standout

Wheel of Fortune. This eye-catching item is already in place in a number of casinos around the world and is proving popular with casino patrons. Among the newer products on show was the R4 automated roulette wheel, which is designed to bring the roulette experience to smaller venues. Four players can sit around the wheel and place their bets while getting a close up look at the action. In the run up to ICE 2014 Alfastreet had promised to unveil a brand new game at the show and, true to their word, the first day of the expo saw the debut of Royal Derby, a mechanical horse racing game. Players can wager on the model horses before watching them complete a circuit of the huge racecourse. The company are reporting that a number of orders have already been placed as a result of the show and their production centres will be at full capacity until the end of the summer.

rane Company completed its acquisition of MEI in December last year, and the newly formed group, Crane Payment Innovations (CPI), was introduced to the UK for the first time at ICE 2014. The soft launch of CPI began at the Ima show in January, and representatives from both Crane and MEI were on hand at ICE to discuss future opportunities with clients old and new. “It will take time to consolidate the organisation,” said James Boje (pictured), vice president of MEI’s gaming and retail division in the EMEA region. “Our goal is to make that process seamless to our customers. “The vision for CPI has a very strong value proposition. The brands are complimentary - offering the industry’s most comprehensive portfolio of coin and note payment systems. The combined knowledge of CPI allows us to offer customers the personnel, experience and products to find solutions that impact the bottom line. “We’re excited for the future,” Boje added. “Rome wasn’t built in a day, and CPI can’t be what we envision immediately. We will stay focused on our customers.

And, over time, consolidation will drive the progress that we know is possible.” MEI’s flagship SC line of payment solutions will be a core part of the CPI portfolio, Boje stated. “Modular expansions like BNF, Easitrax and SCXL have provided the flexibility to cost effectively serve core markets and create newfound cash management efficiencies. Other products will be evaluated over time. “We realise it is natural, then, to ask about CashCode One and Ardac Elite, as well as product from other platforms. No other decisions have been made. And those decisions won’t be made until we can explore possibilities with customers and complete a thorough review. We will remain open minded as the evolution to CPI occurs.”

SUZO-HAPP

Suzo-Happ celebrates acquisitions and innovation

ew of ICE’s five hundred stands could match the sheer volume of products which crowded into SuzoHapp’s corner of London’s ExCeL arena. Taking pride of place atop a red pedestal, used to signify products new this year, was one of the company s latest acquisitions. The Bill-to-Bill banknote recycler, formerly manufactured by Crane, was purchased by Suzo-Happ in December,

2013. It sat alongside many other currency solutions from companies such as Innovative Technology and MEI, which are distributed by Suzo-Happ as a result of agreements signed with many of the industry s major hardware manufacturers. The company’s ICE stand was also enhanced by a range of toppers, with the new Celebration Event providing an attractive centrepiece. This innovative topper connects directly to the

SAS line, triggering a celebration event when it detects a hand-pay signal from the slot machine. This device was created as a result of feedback that Suzo-Happ actively sought from operators. As a result of these discussions, the company were also motivated to create a new range of LED push buttons. Each button has an independent LED screen that can run animations or display a static logo.

Marcel Oelen (left) and Harald Wagemaker

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CASH SYSTEMS

Gauselmann subsidiaries show it all at ICE Hess Cash Systems exhibited the new Scorpion 413 card dispenser at ICE 2014, while GeWeTe presented its full range of cashless gaming solutions to delegates at the London show.

GeWeTe’s Sascha Heinen (left) and Mark Edmundson

erman gaming giant Gauselmann Group used the recent International Casino Exhibition (ICE) 2014 show to display a range of new and existing products from its Hess Cash Systems and GeWeTe subsidiaries. Hess was at the London show to promote its new Scorpion 413 card dispenser, which has been developed to support casinos and other gaming locations using card-based solutions. The multilingual innovation allows players to source their cards and holds up to 500 units while additionally offering customers the ability to easily ‘top-up’ their credit amount and check their balance via a 15inch touchscreen interface.

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Heralded as “the fully automatic around-theclock solution” for casinos and gaming operators relying on card-based gaming systems, the Scorpion 413 finally features a slim design for easy positioning on a gaming floor while the use of Hess Webmaster software allows operators access real-time information regarding how many cards have been paid out and how much money is in the stackers. “We see many opportunities for the Scorpion 413,” said Eric De Kat, international sales director for Hess, who was joined in London by the subsidiary’s product management director, Rene Wijeratne. “The Gauselmann Group

logo is synonymous with product quality and security. Adding the flexibility and compact design to this, it is no wonder that our stand was always busy.” For its part, GeWeTe was at ExCeL to show off its complete portfolio of ticketing, player card and sportsbetting solutions for amusement and gaming machines. Although modern cashless gaming systems offer players the ability to collect any winnings safely and easily, operators may be vexed by the large amounts of cash that is often sat in hoppers. GeWeTe’s ticket and card systems eliminate the need for such large floats by depositing any gains directly onto a card for use

elsewhere. “This money placed in hoppers was not working capital and is now released for operators to use and invest as they please,” read a statement from GeWeTe. “Real experience in various countries has shown that operators can reduce their idle capital by up to 60 per cent when moving over to cashless. The ticket or card can now be redeemed at GeWeTe change machines as these include all the technology to securely read the ticket barcode or ticket and pay out the winnings. Thus, safe and quick payouts are assured 24-hours-a-day [and] sevendays-a-week.” GeWeTe also exhibited a range of ticketing systems

that combine maximum coin and banknote storage with the highest security levels. With cashless innovations such as these, operators are free from any worries that individual machines may be fraudulently manipulated. “Our ‘made in Germany’ quality with optimal security places us at a higher level,” said GeWeTe managing director Aristidis Tsikouras. “We have change machines and redemption terminals for all applications in the UK AWP market. With Mark Edmundson on board to head up our UK and Irish business, our customers can benefit from the best technology with local service.”

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ADVANTECH / GAUSELMANN GROUP / MATSUI /YXYXYXY SIGNS4U SUPPLIER NEWS: JW@SJC.CO.UK

HARDWARE

CHIPS

Advantech provide the tools for technological innovation

Matsui keeps costs low as it seeks new ground

echnology company Advantech brought a range of computing devices to ICE as their strong links with the gaming industry continued to bear fruit. At the heart of the company’s product line is a series of gaming boards that provide the hardware power to help developers create new and exciting games. These include boards that make use of the new AMD Embedded R-Series platform. The device is able to output an extremely high level of graphical quality and can scale up to ten displays. Those customers already using Advantech’s DPX-S series can upgrade to this latest release with very little effort. The company designs its products with futureproofing in mind, ensuring that releases from the same series share a consistent mechanical and software footprint. At ICE, these boards were displayed alongside a range of Intel-powered products, including those that made use of the latest generation of processors and their Haswell architecture. Advantech’s regional

sales director, Sammy Torky (pictured, right), explained that, while most gaming companies have not yet found ways to exploit the potential of the Haswell processor, those looking to remain ahead of the curve were expressing interest in installing these new boards.

Having been recently acquired by Advantech, display manufacturer GPEG added a splash of colour to the stand, with sales and operations director Dave Webbing (pictured, left) on hand to demonstrate the company’s range of touch and non-touch high resolution screens.

SIGNAGE

Signs4U builds its own success

igns4U bore witness to a resurgent ICE, as attendees flocked to its stand with intent to buy. “It’s the most perfect location that I’ve ever seen,” said CEO Martin Spies. “I cannot complain. We’ve sold signs from the stand, which we normally never do.” Proving particularly popular was a range of products designed to reduce the costs of acquiring attractive signage for gaming machines and casino advertising. The signs are delivered in pieces and can be erected by a business’s own electrical experts. Spies described it as a, “sign that you can assemble yourself on location,” that is cheaper than buying ready-made devices as, “everybody has their own technicians.” It’s also a great choice for those looking to purchase from

Signs4U beyond the company’s native Netherlands as “it’s easy to bring to other countries as the shipping cost is low.” The company offers more than just physical signs, with a comprehensive media system forming a major part of their ICE display. “The media system has been renewed again and we’ve made some apps available in the app store,” said Spies. These apps run on Apple’s iOS system and are designed to be used with an iPad to make ad-hoc changes to the displays running in digital signage. “So if you have a location manager and they want to change the show wherever they are, so long as they can make a connection they can swap the feed or whatever they want to do at that time,” he said.

s investment in technology continues to drive innovation across the gaming industry, long-standing casino equipment manufacturer Matsui believes that expensive security solutions, such as RFID, are not always the best option for its customers. “We embed the inks in the decals,” said Dave Holt, managing director of Matsui Europe (pictured, left), “so it’s not visible to the naked eye but you can actually tell whether they’re your chips or not.” These chips were on display as part of the company’s ICE stand, alongside a number of new products. These included the plaque-like premier decal chips, which can be customised with up to three colours and different materials, looks and feels. Their antique stone designs proved particularly popular during the show. “We’re trying to get something new,” said Holt. “People like to see something a little bit different and the casinos like to give their customers something a little bit different to keep them interested.” The company were also on the look out for new markets to explore, as visitors from across Europe passed through their stand. Chief among their expansion plans for 2014 is Kazakhstan, which Holt believes shows great potential for the casino industry.

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SYSTEMS

Bally inks deal with Australian hospitality group ally Technologies has unveiled details of an exclusive enterprise-wide gaming systems agreement with the Australian Leisure and Hospitality Group (ALH). Under the terms of the deal, ALH will deploy Bally’s suite of applications, including voluntary pre-commitment and utilising a common player card, at more than 270 venues throughout the coun-

try, including those in the states of New South Wales, Victoria, Queensland, South Australia, Tasmania, and Northern Territory. The group’s operations span electronic gaming, sports bars, bistros, restaurants, cafes, retail liquor, accommodation, nightclubs and wagering. ALH’s facilities are located in capital cities and urban and regional centres across Australia, with the com-

pany employing about 14,000 people across Australia at more than 300 licensed venues and over 460 retail liquor outlets. “We underwent a comprehensive analysis prior to choosing Bally’s innovative systems to provide single-card access for players across our entire enterprise,” said ALH chief executive officer Bruce Mathieson. “After a thorough process, we determined Bally’s

solutions best fit our needs by providing a world-class player experience with a focus on industry-leading responsible gambling measures.” Bally president and chief executive officer Ramesh Srinivasan said: “ALH is one of the finest and most respected gaming leaders in Australia. We look forward to building a solid partnership with ALH and helping them ensure that

iVista provides a valuable and entertaining experience for their patrons, while encouraging responsible gambling.” Bally’s iVista Display Manager (DM) picture-in-picture technology enables content such as player messages and player account information to be displayed right on the main game screen or top screen of games equipped with a touchscreen display.

TABLES

INTERBLOCK

Abbiati celebrates two decades of London shows T

Interblock brings high definition to ICE

hanks to its status as the largest gaming trade show in Europe, ICE presents companies such as Abbiati with the perfect opportunity to meet existing customers and prepare the ground for future relationships. “Our company has continued to grow more and more over the years” said Giorgio Abbiati, CEO of Abbiati Casino Equipment. “During this show we gained positive feedback from new and existing customers, who were impressed by our innovative products”. This year marked the 20th time that Abbiati Casino Equipment had attended London’s primary gaming expo. Abbiati’s range of Italianmade items included branded tables and roulette wheels. Chief among these was European style wheel manufactured exclusively for the terrace of the prestigious SBM - Le Casino in

I Reda Seiliute, PA Director

Monte Carlo. The company also displayed a range of high security chips, jetons and plaques which received a high level of interest from ICE attendees. “Most of the visitors come from Europe, where the company still con-

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centrates and continues to hold a major market share” said commercial director Terry Clarke, “however, many investors from the Americas, Africa and Asian countries were also present and this was an excellent opportunity for us.”

nterblock’s G5 HD generation of gaming products took centre stage on the Slovenian company’s stand at ICE Totally Gaming this year. The group demonstrated to operators the new G5 HD Play Station, the G5 HD Bubble Generator with 10 G5 HD Play Stations, new G5 IB-HG 55-inch LCD and the G5 HD StarBar. Interblock’s Hologram Gaming Lounge (IBHGL) received an “outstanding response” from delegates, the company stated. Commenting on the success of ICE 2014, Tom O’Brien, CEO of Interblock’s US division, said: “Each and every year we seem to somehow top the previous year. This was

one of our best ICE shows to date. We may have received more confined orders at a single show then ever before.” Miha Miklavcic, sales director for Interblock Europe, added: “The 2014 ICE show was another story of success. This year we have presented the new G5 HD generation of products to the European markets, strengthed our ties with our long-time partners and added some of the biggest names in the European casino industry to our customer list. The year ahead looks very positive and we can’t wait to see the first G5 HD products installed in the best casinos all across Europe.”

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ABBIATI / BALLY TECHNOLOGIES / E GAMING /INTERBLOCK / R FRANCO / TCS JOHN HUXLEY SUPPLIER NEWS: JW@SJC.CO.UK

GAMING MACHINES

International expansion a top priority for E-Gaming zech manufacturer E-Gaming has focused on exploring new territories during the last 12 months, displaying the fruits of those labours at ICE 2014. Gaming machines have been designed specifically for the Spanish and Mexican markets, with specific variants having recently undergone laboratory tests. “Our machine passed all tests well and we will have it approved for several communities,” said international sales executive, Urbain Thewissen, “but Spain has a very strict rules for several communities, so we are doing more tests.” E-Gaming has also taken the first steps towards supplying machines to the Mexican market. “We have been testing for four months and results are very good,” said Thewissen. “We have approval already in Mexico and we are trying to install more machines.” ICE provided the chance for company representatives to meet not only major European operators, but also potential customers

BACK OFFICE

from further afield. “We met some people here from other countries in South America,” said Thewissen, “and we met somebody very interesting for Asia.” Outside of their native Czech Republic, the company views the casino market as its most lucrative opportunity and has focussed on this sector alone while expanding

its international portfolio. “The casino market is a stable market,” said Thewissen, as he revealed that plans for E-Gaming to move into further territories were already underway. “We signed two deals to go to other counties,” he said, adding that these machines were currently undergoing a homologation process.

APPOINTMENTS

Top level changes bolster R.Franco’s ICE offering

panish manufacturer Recreativo Franco made its way to ICE 2014 with a new leadership team in place, following six months of detailed restructuring. The program was instigated by chairman, Jesús Franco in an attempt to ensure that his company maintain its position as a leader in national and international markets. The project began in July 2013, with managing direc-

tor Pedro Melendo leading a process which has seen the formation of a sales and marketing department headed by Luigi Limido (pictured right). He was brought on board with a plan to inject the company with a greater international vision and understanding of business procedure. Most recently, Santiago Escribano (pictured left) entered R. Franco as the director of technology. Less than a month before ICE, Escribano was appointed to oversee the R&D and systems departments. Despite undergoing an executive shuffle, there was never any question that the company would miss out on a chance to showcase their products at ICE. Recreativo Franco considers the show to be the most important in its calendar and came to London with a selection of new devices. These included a slant top cabinet with a 25 inch monitor, hosting a multistation concept that links to a physical roulette wheel and a new poker game in its constellation casino cabinet.

TCS John Huxley offers CasinoEngine

CS John Huxley has signed a deal that will see it supply landbased casino operators outside of North America with the CasinoEngine aggregator from developer EveryMatrix. The CasinoEngine innovation offers access to more than 1,500 games from over 20 vendors via a single integrated back-office and wallet system complete with a joint bonus and frequent player points system. “When selecting our interactive technology partner, we’ve had the player in mind throughout,” said Jonathan Pettemerides, business development director for TCS John Huxley. “EveryMatrix has successfully integrated the widest selection of casino content from the best online and traditional vendors. The back-end system will allow our casino clients to control their online and mobile offerings as they would their traditional gaming floor. “Ultimately, the player wants choice and this partnership allows TCS John Huxley to offer the best interactive gaming solutions in the industry. Our target is

to unify the player experience on and off-line including bonus and loyalty programmes.” The agreement will also see TCS John Huxley provide customers with additional advisory and front-end web development services as well as ongoing support. “Our premium award-winning solutions have so far been exclusive to highly experienced or extremely ambitious operators, forward-thinking entrepreneurs who had online gaming at the core of their business,” said Ebbe Groes, chief executive officer for EveryMatrix. “This new partnership with TCS John Huxley will give land-based operators globally access to our innovative solutions, allowing even long-standing businesses to stay ahead of the game instead of playing catch-up. Our unique web API makes it possible to customise completely to cater for the needs of any landbased casino and, in terms of content, name any game, any payment solution, international or local [and] we’ll provide it.”

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SUPPLIER NEWS: JW@SJC.CO.UK

VLTS

SECURITY

International focus for VNE

Kiowa opts for Dallmeier protection

NE has long been the first choice for high-quality change machines in its home country of Italy, but the company’s appearance at ICE provided a chance for the company to showcase its products to an increasingly engaged international audience. The company places security front and centre when designing its change machines, implementing multiple locking systems and a door with dual steel layers. Its hardiest product, The Viking, even includes a biometric reader to provide an added level of protection. Many of VNE’s change machines also feature a multimedia screen, used to inform or entertain customers. These displays are highly configurable and can be programmed to display everything from advertising to a jukebox. Among the machines on display at this year’s VNE stand was the brand new Bill Breaker. This device converts large denomination notes to smaller ones and has been designed to provide a

Valentina Santerelli, international sales manager

high level of functionality within a modestly sized device. The Bill Breaker is capable of storing up to 2,500 bank notes, using five Fujitsu note dispensers with an individual capacity of 500 notes.

“To be the international choice, one has to be one step ahead,” said commercial director, Lorenzo Verona. “That is what we are recognised for - a step ahead in security, design,

support and technology and that all at a very fair price. We look forward to hearing from international companies to see how we can support them for their change machine requirements.”

TECHNOLOGY

Gamesman praise for ‘vintage edition’ of ICE

amesman returned from ICE reflecting on what managing director Mark Smith described as “the most satisfying exhibition that the company has ever participated in.” The comments came as Gamesman celebrated the first year since its full integration as part of the Esterline Corporation and its 17th consecutive appearance at ICE. Expanding on Gamesman’s show experience Mark Smith said: “ICE is very much a barometer for the international industry based on its unerring ability to attract gaming professionals from all corners of the globe. I wouldn’t go as far as to say the economic climate has turned round but we detected a real sense of purpose on the show floor at

allmeier, a specialist in security, has completed a largescale installation at the Kiowa Casino in Devol, Oklahoma. The 60,000 square foot resort is modelled after the casinos of Las Vegas and features more than 900 slot machines alongside a range of classic table games. Three restaurants also make their home on the Kiowa’s grounds. In order to keep their patrons protected with the latest in security technology, casino management chose to update their ageing network with a range of Dallmeier products. The German company has a long history of developing solutions tailored to the needs of each casino and has been working in the North American market for more than ten years. “We wanted to add high definition cameras to our existing installation,” said Michael Pratt, director of surveillance for Kiowa Casino, “and we chose the IP cameras from Dallmeier because of their outstanding image quality.” Cameras old and new are all routed through the SeMSy Security Management System, with a personalised graphical user interface and unique functions designed specifically for Kiowa. “It was particularly beneficial to us to be able to integrate our existing analogue camera installation from a third-party provider in the new system from Dallmeier without difficulty,” said Pratt. The casino also opted for the VMC-1 Video Management Centre. By using a keyboard, joystick and jog-shuttle, a security operative can switch between cameras intuitively. Dallmeier’s systems is also completely configurable, so that both left and right handed users can operate the VMC-1 naturally.

ExCeL and a determination to make the very most of the immense array of gaming

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innovation that were on display. ICE has very rapidly become a gaming technology

event and from our perspective stand visitors were keen to learn more about our dynamic, LCD, OLED and touchscreen button deck solutions, which represent a formidable array of technology right across the board.” The volume and geography of visitors who make the journey to London each year is another major attraction for Gamesman: “ICE is like the United Nations of gaming,” explained the company’s Martin Rigby (pictured). “It gives us the opportunity to engage with our customers in every region. There was a strong presence from Asia, which continues to grow in importance for us. We went into ICE in confident mood and left the show with a clear agenda for growth.”

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Listings

Business2Business SUPPLIER NEWS: JW@SJC.CO.UK

From left to right: Jens Halle, John Edmunds, Sabbe Gill, Manis Jaeger

ANNIVERSARY

Champagne toast for FutureLogic’s 15 years

selection of gaming luminaries gathered at the FutureLogic stand during ICE Totally Gaming to celebrate the company’s fifteen year anniversary. Chief marketing officer, John Edmunds began proceedings by thanking the assembled press and industry figures for attending. “Little did we know,” he said, “that when we designed the first TITO printer back in

CASINO SEATING Patir taps South American casino market

LISTINGS

atir Design of Germany is tapping into the high-growth South American casino markets. The company’s Suleyman Yilmaz said a recent casino seating deal resulted in the successful installation of 1,200 chairs in Uruguay, with a further 1,100 planned over the coming months. “We are deliberately progressing slowly in South America, but with sure steps,” Yilmaz told International Casino Review.

CASINO MANAGEMENT SYSTEMS RC Casino selects Konami’s Synkros

C Casino has chosen Konami Gaming’s casino management system, Synkros to help the company manage its

1999 we would be part of one of the biggest replacement cycles the gaming industry has ever seen.” He was followed on stage by Sabbe Gill, SVP for international sales at IGT, FutureLogic’s very first customer.” Jens Halle, managing director at Novomatic, closed proceedings with a tribute to FutureLogic.

new property, Rhythm City Casino in Davenport, Iowa. Located in the heart of the Quad Cities, Rhythm City Casino is one of the first riverboat casinos with over 850 games and 14 tables within a 30,000sq.ft casino. The casino joins Riverside Casino and Golf Resort and Grand Falls Casino to become the third Kehl family property to utilise Konami’s Synkros system.

VIDEO LOTTERY TERMINALS Oregon lottery ups GTech VLT order

SUPPLY CONTRACT

Princess Group names JCM as preferred supplier

eading transaction technologies supplier JCM Global has been selected by Princess Group as its preferred supplier for bill validators and printers. Princess Group, one of the largest operators in Eastern Europe with more than 10,000 slots in operation, will use JCM’s award-winning iVizion bill validator and PayCheck 4TM thermal printer in new devices moving forward. Additionally, Princess Group may be a preferred trial site for JCM’s Dynamic Network Applications (DNA) system.

said it expected to receive total revenues of approximately $22m (E16m) from the sale.

CUSTOMER SERVICE Australian expansion for WMS Gaming

MS Gaming has expanded its commercial activities in Australia after launching a new customer-facing sales team and dedicated product development studio. Building on the efforts of former distributor eBET Group, the Scientific Games Corporation subsidiary reveals that it now plans to drive long-term growth and enhance player experience by offering a new product portfolio tailored for the Australian market while also supporting its existing customers.

tech subsidiary Gtech Canada has signed an amendment to its contract to supply an additional 850 Spielo Oxygen video lottery terminals (VLTs) to the Oregon Lottery. The deal marks an expansion to the 1,500 VLTs that was first announced in October 2013. Under the terms of the original contract, Gtech March 2014 casinoreview

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Business

& City News

CAESARS ENTERTAINMENT

US casino operator Caesars Entertainment will sell four properties to an affiliate for $2.2bn (E1.6bn), freeing up cash as the company works to restructure $24.5bn (E17.8bn) in debt.

Bally’s Las Vegas

Caesars Entertainment sells four casinos to affiliate

aesars Entertainment Corporation has entered into a definitive agreement to sell Bally’s Las Vegas, The Cromwell (formerly Bill’s Gamblin’ Hall & Saloon), The Quad and Harrah’s New Orleans to Caesars Growth Partners for a purchase price of $2.2bn (E1.6bn). The transaction, which is expected to close in the second quarter of the year, includes assumed debt of $185m (E135m) and committed project capital expenditures of $223m (E162m), resulting in anticipated cash proceeds of $1.8bn (E1.3bn). Caesars Growth Partners was created last year to aid in debt reduction. The parent company owns 58 per cent of Caesars

54 | casinoreview March 2014

Growth, which also holds the company’s online gambling operations and the Planet Hollywood Casino in Las Vegas. The remaining 42 per cent is owned by Caesars Acquisition Company, a publicly traded company created last year through a $1.17bn (E850m) rights offering to Caesars shareholders. Caesars Entertainment and its affiliated companies will manage the purchased properties, allowing continued integration with the Total Rewards network and related synergies. “These actions are part of ongoing efforts to address Caesars Entertainment Operating Company’s overall capital structure and position that subsidiary of Caesars Enter-

tainment to enhance equity value,” the group said. “The sale of Bally’s, The Cromwell, The Quad and Harrah’s New Orleans to Caesars Growth Partners preserves the network value of the four properties while enhancing liquidity at Caesars Entertainment Operating Company. The sale also includes a financial stake in the associated management fee stream. This asset sale will also facilitate new investment in these properties, some of which require considerable capital expenditures to realise their full potential as part of Caesars’ network at the centre of the Las Vegas Strip.” Commenting on the transaction, Gary Loveman, chairman and chief

executive officer of Caesars Entertainment, said: “Since being taken private near the beginning of the global financial crisis, we have faced an incredibly challenging business environment and a highly leveraged capital structure. “Despite these obstacles, we have invested significantly in the growth of our network and the enhancement of our assets while concurrently deploying a wide array of financial and operational tools to manage the company’s capital structure and create value. “Entering 2014, I am very excited about our new customer offerings. Across our network, we have recently opened or will open promising new projects and

amenities, such as The LINQ and High Roller and upgrades throughout Las Vegas. We also share in the economic benefits associated with Caesars Growth Partners, including considerable growth last year at Caesars Interactive Entertainment, through social and mobile games and the launch of real-money online gaming in Nevada and New Jersey. “Today’s asset sales mark an important step in our ongoing efforts to repair Caesars Entertainment Operating Company’s balance sheet,” Loveman added. “Caesars Entertainment and Caesars Acquisition Company have a combined equity market capitalisation of more than $5bn (E3.6bn).”

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YXYXYXY BUSINESS NEWS: JW@SJC.CO.UK

SJM

BALLY TECHNOLOGIES

Net income swells at SJM asino operator Sociedade de Jogos de Macau (SJM) Holdings Limited has surpassed analysts’ estimates after reporting a 14 per cent year-on-year increase in net income for 2013 to $994m (E720.3m). The firm behind the planned Lisboa Palace destination resort on the Cotai Strip, SJM saw total annual gaming revenues climb by ten per cent year-on-year to $11.2bn (E8.1bn) as mass-market and VIP players from mainland China bet more in Macau. SJM controls 20 of the 35 casinos in the former Portuguese enclave and revealed that its overall market share fell by almost two per cent when compared to 2012 to 24.8 per cent although revenues from massmarket table gaming improved by 13 per cent year-on-year, helped by the opening in the fourth quarter of a new lounge for its Grand Lisboa development. The operator is

actively pursuing such players including vacationers as they bring in additional earnings through shopping, dining and concerts, although it declared that returns from VIP customers had risen by 9.4 per cent yearon-year.

Last year saw the company established by Stanley Ho boost efforts at attracting premium players who place larger wagers than their massmarket counterparts while incurring lower costs than VIPs brought in by middlemen.

CAESARS INTERACTIVE ENTERTAINMENT

Caesars acquires social gaming group, Pacific

S operator Caesars Interactive Entertainment (CIE) has completed the acquisition of Pacific Interactive, the social gaming company behind the House of Fun social and mobile casino-

themed games. The agreement, which includes the assets of various affiliates of Pacific Interactive, marks CIE’s fourth acquisition deal in the social games market. The group com-

pleted the acquisition of Playtika in 2011, Buffalo Studios in 2012 and the poker app distributed under the World Series of Poker brand in 2013. Under the terms of the latest deal, CIE will retain more than 100 employees of Pacific Interactive and its affiliates in multiple offices around the world. CIE will begin to immediately integrate the operations. “The acquisition allows us to offer a new quality product to our loyal user base and to attract new users,” Playtika’s chief executive officer Robert Antokol said. “We believe the talented team at Pacific Interactive not only brings with it a unique product, but will also be a strong addition to the group and add to our market leadership in the category.”

Bally brings up tenth straight profitable quarter ally Technologies has announced a record second quarter revenue of $285m for the three months ended December 31, 2013. A 20 per cent increase on the second quarter from a year earlier, the result also represented the gaming manufacturer’s tenth consecutive profitable quarter. It was driven by record $85m second-quarter results from Bally’s systems division, a 51 per cent increase on the same quarter a year ago. The firm’s electronic gaming machine revenue rose seven per cent to $88m, but its revenue from its gaming operations took a slight 2 per cent dip to $97m. With products from the newly-aquired SHFL Entertainment now included in Bally’s results, table gameproduct revenue weighed in at $14.3m for the quarter. Bally said it believes the integrated operation with SHFL will yield cost synergies of at least $40m, higher than the $30m previously forecast. Ramesh Srinivasan,

Bally president and CEO, commented: “Our second quarter fiscal 2014 was transformative in many respects. “We have integrated our sales, services and product development teams while simultaneously continuing to execute well on our core businesses as evidenced in our second quarter results. “While more work remains to be done, we are off to a terrific start and are tracking ahead of our synergy targets. Neil Davidson, the company’s chief financial officer, added: “As we make progress on the integration process and continue to identify incremental synergy opportunities, we now expect cost synergies to be at least $40m on an annualised run-rate basis by the end of calendar 2014. “Now that the acquisition has closed, we are thoughtfully allocating free cash flow towards the repayment of our debt with a goal of achieving a leverage ratio of approximately 3.0 times within the next two years.

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Business

& City News

BUSINESS NEWS: JW@SJC.CO.UK

MELCO CROWN ETERTAINMENT

Melco Crown sees doubling of net profit elco Crown Entertainment has reported a net profit of $223m for the fourthquarter of 2013, over twice what it was in the same quarter a year earlier. The casino developer and operator said its net revenue for the fourth quarter was $1,395m, an increase of around 27 per cent on the comparable period in 2012. It attributed the increase in net revenue to substantially improved group-wide revenues across all of its gaming segments, particularly in the mass market table games segment. Melco’s fourth-quarter earnings before interest,

December 31, 2013, Melco reported a net revenue of $5.1bn, up exactly $1bn from the $4.1bn it recorded for the prior year. The increase was driven by substantially improved mass table games volumes and blended hold percentages, as well as increased volumes in the rolling chip and gaming machines segment. Adjusted EBITDA for the full year was $1,287m, as tax, depreciation and amor- improvement was primarily compared with $920m in tisation rose by 49 per cent driven by stronger mass 2012, mainly due to substanto US$369 m, compared to market and rolling chip rev- tially improved mass table $248m in the fourth quarter enues, together with its games and rolling chip revof 2012. ongoing commitment to enues together with a strict The firm said the 49 per controlling costs. cost control focus. cent year-over-year For the full year ended Lawrence Ho, Melco co-

chairman and CEO, commented: “I am pleased to announce another record quarter of group-wide EBITDA, primarily driven by the success of the mass business at our flagship property in Macau, City of Dreams, where we continue to leverage the property’s world-class amenities and attractions to entertain the highly discerning and sophisticated premium mass customer, which in turn enables us to maintain our market leading mass table yields. “Our development pipeline continues to progress as planned. We recently completed a Philip-

pine Peso denominated, approximately $340m equivalent, five per cent senior note offering at our majority-owned subsidiary, Melco Crown Philippines, which delivers us a fully funded financing package to open City of Dreams Manila later this year. “Macau continues its strong upward trajectory with market-wide gaming revenues growing at approximately 19 per cent in 2013. Importantly for Melco Crown Entertainment, the highly profitable mass market segment continues to deliver above-market growth, reaffirming our focus on this key segment.

CODERE

PINNACLE ENTERTAINMENT

Insolvency looms for troubled Codere

Pinnacle Entertainment on the rise

ultinational gaming operator Codere has failed to reach an agreement with creditors regarding the extension of a now-matured $173m (E127m) senior credit facility. Battling to avoid insolvency after reporting a debt of approximately $1.7bn (E1.3bn) to the end of September 2013, Madrid-based Codere had hoped to exercise an option that would have seen the facility stretched until April 15 this year, but was unable to finalise a restructuring plan with at least 50 per cent of shareholders, which was one of the preconditions for any extension. The loss-making firm, which operates venues in Spain, Chile, Mexico, Brazil, Columbia, Panama, Uruguay and Argentina under its Codere America, Colonder, Nididem, Codere Internacional Dos and Codere Internacional brands, has made several late bond coupon payments, as it tried to win time to restructure its debts and previously

56 | casinoreview March 2014

agreed a deal that gave it until February 6 to repay the loan originally due a month earlier. Bondholders subsequently made an unsuccessful debt-for-equity swap offer that would have seen lenders receive 82.5 per cent of the firm’s total stake in return for a reduction in arrears. “The board would not back any possible restructuring that doesn’t guarantee equality among all shareholders,” Codere said. Controlled by Spain’s Martinez Sampedro family, which established the firm three decades ago and holds a 70 per cent stake, Codere went public in 2007 to raise expansion funds and has since invested around $1.03bn (E752m), mostly in Latin America. The company stated that negotiations with creditors are continuing but it may have to apply for full creditor protection after having sought similar preliminary safeguards in January.

merican casino operator Pinnacle Entertainment has reported a 110 per cent rise year-on-year in fourth quarter net revenues to $280.3m (E204.3m), while the figure for the full 12 months increased by $485m (E353.5bn) to $1.5bn (E1.09bn). August saw Pinnacle complete the purchase of rival Ameristar Casinos for $2.8bn (E2.04bn) including assumed debt, thus adding eight properties to its portfolio with the Las Vegas-based firm revealing that these new assets helped fourth quarter consolidated adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) swell by 148.9 per cent year-on-year to $140.5m (E102.4m). Full-year consolidated adjusted EBITDA improved by $120.4m (Em) to $370.7m (E270.2m) while November saw Pin-

nacle Entertainment offload its interests in the Ameristar Casino Lake Charles project for approximately $180m (E131.2m) excluding $35m (E25.5m) in deferred consideration. Income from continuing operations for the final three months of the year rose by $39.7m (E28.9m) to $8.6m (E6.2m) compared with a loss of $31.1m (E22.6m) for the same period in 2012 while the fourth quarter saw Pinnacle Entertainment declare

operating income of $69.8m (E50.8m), which is well up on the $22.9m (E16.6m) for the previous corresponding stage. Pinnacle Entertainment held around $191.9m (E139.8m) in cash and equivalents at the end of the year after repaying approximately $230m (E167.6m) in loans and stated that it expects to spend between $90m (E65.6m) and $110m (E80.1m) on capital expenditure over the course of 2014.

If youâ&#x20AC;&#x2122;re searching for the very best journalism, the widest distribution and inventive advertising opportunities, International Casino Review is your partner of choice. For more information on how we can help you deliver your message to the global casino industry community, simply contact John Sullivan at jsullivan@gbmedia.eu to receive your media pack or call us on +44 (0) 1204 396 397.

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Business

& City News

BUSINESS NEWS: JW@SJC.CO.UK

MGM RESORTS

AGEM

MGM returns to pre-recession operating performance

Seven new members for AGEM

Global casino operator has MGM Resorts has reported its best operating performance since the start of the recession thanks to its Las Vegas and Macau businesses.

ed by a recovery in its Las Vegas business along with continued growth from Macau, global casino operator MGM Resorts International has reported a seven per cent year-onyear increase in net revenues for 2013 to $9.8bn (E7.1bn). The Las Vegas-based firm - the second largest casino operator in the world by revenues - revealed that total adjusted property earnings before interest, tax, depreciation and amortisation (EBITDA) for 2013 were 18 per cent higher than for the previous 12 months, led by its Bellagio hotel and casino, which saw net revenues swell by 2.6 per cent year-on-year to $1.17bn (E851.71m). Annual net revenues from the firm’s wholly-owned domestic resorts amounted to $6.1bn (E4.4bn), representing a two per cent rise on 2012, while adjusted

he Association of Gaming Equipment Manufacturers (AGEM) has approved the membership applications of seven new companies to bring its total number of individual constituents to 133 from 20 nations. The latest recruits to the association ranks includeinclude single and multi-touch systems provider DigiTech Systems; GameAccount Network, which develops internet gaming systems that contain a suite of proprietary and integrated third-party games; independent global market research firm Ipsos; mobile engagement company Joingo; Mexico Citybased legal advisors Lazcano Samano; and online, terrestrial and social gaming technology solutions supplier NYX Gaming Group

property EBITDA improved by nine per cent year-on-year to $1.4bn (E1.01bn). In Macau, the American operator’s MGM China subsidiary heralded record results for 2013 with net revenues of $3.3bn (E2.4bn) alongside adjusted EBITDA of $814m (E592.5m), which represented a 20 per cent rise year-onyear excluding $36m (E26.2m) in branding fees. MGM reported that its giant CityCenter development in Las Vegas, which it owns in partnership with investments firm Dubai World, saw net revenues grow by ten percent year-on-year in 2013 to $1.2bn (E873,552m) while adjusted EBITDA rocketed by 37 per cent when compared with the prior year to $316m (E230m). “In 2013 we achieved our best operating performance since the recession,” said Jim Murren, chair-

man and chief executive officer for MGM Resorts. “The fourth quarter finished strong with six per cent adjusted EBITDA growth at our wholly-owned domestic resorts and record quarters at MGM China and CityCenter. “In 2014, we expect our Las Vegas properties to continue to improve, driven by a strong convention calendar and the completion of several capital initiatives on the Las Vegas Strip. In Macau, we continue to yield our existing resort and are well underway in more than doubling our footprint in the world’s largest gaming market with MGM Cotai set to open early 2016.” The group stated that it held a cash balance of $1.8bn (E1.3bn) at the end of the year that included $1bn (E728m) at MGM China and had $2.8bn (E2.03bn) in outstanding borrowings under a $4bn (E2.9bn) senior credit facility and

$553m (E402.5m) owed as part of a $2bn (E1.4bn) MGM China provision. “We accomplished many financial goals in 2013,” said Dan D’Arrigo, executive vice-president, chief financial officer and treasurer for MGM Resorts. “We reduced debt and, by issuing the lowest interest rate senior unsecured notes in the history of our company, we prefunded our only scheduled 2014 debt maturity. With CityCenter’s debt now refinanced, we have lowered its annual cash interest expense by approximately $80m (E58.2m), further enhancing CityCenter’s future cash flow potential. “We remain focused on further deleveraging our balance sheet in 2014 by maximising operating cashflows and from anticipated dividends received from MGM China.”

GTECH

GTech agrees Probability purchase

lobal lottery and gaming group GTech has reached an agreement that will see its GTech UK Interactive Limited Specialist subsidiary purchase mobile gambling software provider Probability for £29m (E21m). Expected to be completed later this year, the acquisition will see GTech take control of the LadyLuck’s mobile casino

58 | casinoreview March 2014

brand, which launched in 2006 and gives players the chance to enjoy a range of games while on the move. London-based Probability has long been the subject of takeover speculation with betting shop firm William Hill making an unsuccessful offer in October of 2011 worth $33.2m (E24.1). “This acquisition is a significant step in GTech’s ongoing efforts to meet the

mobile gaming needs of our World Lottery Association and commercial customers,” said Renato Ascoli, products and services president for GTech. “Probability does not have a World Lottery Association presence and its products complement GTech’s mobile product offering. The combination will generate operational synergies, primarily in research and development and

games development.” Probability was established in 2003 by technology entrepreneurs Charles Cohen and John Scaife before purchasing Italian mobile gambling technology provider Playyoo nine years later. It premiered the Slot-O-Matic online slots development platform last year while also spending $1.6m (E1.2m) to develop a portfolio of six high-definition slots.

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

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Sectors

& Services

CURRENCY

Bitcoin solution draws industry attention

SoftSwiss’ Bitcoin Casino solution was recognised as a unique market proposition at ICE Totally Gaming 2014.

SECTORS NEWS: JW@SJC.CO.UK

oftSwiss presented its innovative Bitcoin Casino Solution at the global gaming exhibition ICE Totally Gaming 2014. The Bitcoin payment processing system integrated into SoftSwiss casino software was recognised as a unique market proposition at ICE. SoftSwiss actively promotes adoption of Bitcoin in online gaming, and for this reason the company decided to become the headline sponsor of the ICE Bitcoin Seminar. The pressing topic of the seminar attracted visitors than organisers could accommodate. Speakers covered all the main aspects of Bitcoin trends, touching upon payment processing applications, provably fair technology, jurisdictions and various business aspects in the iGaming industry. “Using Bitcoin currency allows operators to bring the transparency of gaming to a new level,” stated Ivan Montik, CEO and founder of SoftSwiss, speaking as an expert at the ICE Bitcoin seminar. “This technology makes payment process 100 per cent secure, allows saving on fees charged by third-party payment providers and gives full control over finances. It also eliminates the charge-

APPOINTMENTS SIM BIELAK JOINS SUZO-HAPP

Suzo-Happ’s Harald Wagemaker (left) and Sim Bielak at ICE 2014

LISTINGS

60 | casinoreview March 2014

uzo-Happ has welcomed Sim Bielak, who joins the company as executive vice president and general manager for the company’s global Bill-to-Bill product line for the Bill-to-Bill product line.”

Two new appointments at Aruze

aming entertainment provider Aruze Gaming America has appointed Kelcey Allison as its new chief operating officer, while Jamison Hill has been named as its North America sales vice-president.

SECURITY Panoramic new products for Dallemeier

head of the InterTraffic 2014 expo, security specialist Dallmeier has unveiled a range of new solutions, including the Panomera Traffic, an intelligent video-IP

back issue present in the real money gaming. “Players add money to their account and gamble on the operator’s website. Then they claim their accounts have been hacked which results in refunds and penalties for the operator. Such cases are technically impossible with Bitcoin.” Betsoft Gaming, a market leader in the online gaming sector, suggested integrating its Bitcoin games into SoftSwiss Casino platform. Edict is ready to integrate real money games and become a group partner, in line with Amatic and Ezugi (the Israeli live dealer gaming provider). SafeCharge, the global payment solution provider, also offered mutually beneficial co-operation, which will simplify payment processing and allow SoftSwiss clients having a single merchant account for all casino-related financial transactions. “At this stage, Bitcoin payment system is only available as part of our Bitcoin Casino Solution, which means that it goes in the package with our casino platform and games,” Montik said. “However, since there were a lot of inquiries about it at ICE, we are now evaluating the possibility of offering this functionality as a separate solution which can be integrated in any third party system.”

solution for traffic telematics applications. The package includes a multifocal camera system and special video analysis tools for high-resolution streams, alongside a virtual video matrix that feeds into the SeMSy video management system.

MERGERS & ACQUISITIONS SpringOwl agrees Bwin purchase

ew York hedge fund Cumberland Associates has tentatively agreed on a deal that will see its SpringOwl investment vehicle purchase around 6.1 per cent of online gambling firm Bwin.Party Digital Entertainment for an undisclosed sum. Under the terms of the potential deal, SpringOwl will have the right to appoint one director to the board and could increase the likelihood that the gaming group behind the PartyPoker and Bwin brands will be dissolved in the near future.

FUNDING Konami Gaming donates to UNLV

onami Gaming Incorporated has donated $2.5m (E1.8m) to the hotel

administration school at the University of Nevada Las Vegas (UNLV). The gift from the American division of the Japanese slot giant will help to fund the construction of the new $50m (E35.4m) Hospitality Hall academic building for the William F Harrah College of Hotel Administration. The new facility is expected to include classrooms, laboratories and meeting spaces with $20m (E14.5m) of its expected total cost dependent on private supporters.

ONLINE GAMING WMS sells JackpotParty assets

merican electronic gaming machines developer WMS Industries has sold its JackpotParty.com website domain to online gambling software platform provider SkillOnNet. A subsidiary of Scientific Games Corporation, WMS Industries has offloaded all of its assets in JackpotParty.com, including the online casino’s player database and intends to migrate players to the new Malta-licensed SlotsMagic.com domain with affiliate sales and marketing duties managed by EgamingOnline. Financial terms of the transaction were not disclored.

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