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CR138-p01-front_Coinslot NEW 09/04/2014 11:28 Page 1

APRIL 2014 • EDITION 138

TWITTER/@ICASINOREVIEW• WWW.CASINOREVIEW-ONLINE.COM

News World

KONAMI SYSTEMS

SHOWING OFF: MACAO GAMING SHOW DECLARES ITS STATEMENT OF INTENT 4 “If you own the system, you own the floor.” PEOPLE 48

News

North America Reasons to be cheeful for Las Vegas? 20

THE BUSINESS NEWSPAPER FOR THE GLOBAL CASINO INDUSTRY

GAMBLING ZONES Sergei Aksynov (left) may not get his way with President Vladimir Putin (right)

Crimea wants casinos to boost its economy

C CRIMEA

Russia’s newest, if most disputed, territory believes its fortunes could benefit from casinos, helping it promote tourism and reboot its economy. But, this idea is likely to meet resistance from Moscow.

rimea’s Prime Minister Sergei Aksynov has called for the territory to host a new Russian gambling zone as part of wider plans to boost its economy now that it has broken away from Ukraine. Apart from long being an important Russian naval base and tourist destination, Crimea brings little to its annexor’s table economically. There are untapped gas and oil deposits that might bring some money in, but as part of Ukraine it contributed only around three per cent of GDP and, says the government in Moscow, is currently running a deficit of around E1bn. Russian tourism could be its best hope to create new jobs and income and, according to reports in the Austrian newspaper Die Presse, Aksynov wants the issue examined in Moscow. The prospect of creating another gambling zone for the Russian market was raised in late March and discussed with the Russian

Prime Minister Dmitry Medvedev during his visit to Simferopol on March 31. It was during Medvedev’s presidency that all casinos were banned in Russia and four gambling zones established at the far-flung edges of the country. In the six years since, only token establishments have been built in Azov City in southern Rostov region; ambitious plans for resorts in Primorye in the far east seem to have more chance of success with significant backing notably from Melco. However, plans for the Altai region have not yet been realised and nothing is even on the table for the Kaliningrad enclave on the Baltic Sea. During his visit, Medvedev outlined Moscow’s thinking for Crimea’s economic future. He told a meeting of Russian and Crimean ministers: “Our aim is to make the peninsula as attractive as possible to investors so that it can generate sufficient income for its own development. There are

opportunities for this: we have to take everything into consideration.” He added: “We have decided to create a special economic zone here. This will allow for the use of special tax and customs regimes in Crimea and also minimise administrative procedures.” Medvedev’s statement as yet leaves open the possibility for casinos to be part of the mix - it might offer a better prospect as a gambling zone than most of the others. Under both imperial and communist tsars, Crimea was the holiday destination of choice for the elite, with a southern Riviera offering a subtropical microclimate and warm sea bathing. Its fortunes as part of Ukraine have not been as good since the collapse of the Soviet Union but it retains its cachet, not least for reasons of simple nostalgia. Working against its resurgence as a tourist resort is the fact that it remains a disputed territory, which is likely to

discourage outside investment whether casinos are involved or not - there is nothing capitalism hates more than uncertainty. In the modern day, too, Russians boarding flights to go on holiday may choose any number of other destinations that are more developed, particularly if they want to gamble. Political distaste of casinos cannot be overlooked either. In February, the Russian news agency RIA Novosti released remarks made by President Vladimir Putin regarding the creation of a gambling zone in Sochi, advocated by investors worried about their prospects following the Winter Olympics. At a meeting with officials Putin said: “We agreed to a have a gambling area on the border between the Rostov region and Krasnodar Territory [the Azov City gambling zone], and then even agreed to allow that to cover part of the Black Sea coast. In my opinion, it doesn’t make sense to create another such area in

the same region, despite the fact that it would make a return on investment.” He added: “Gambling zones attract crime, but it’s not the only problem. That is a specific crowd - I’m not saying they are bad or good, they are kind of specific. It would almost deprive all families with more middle and upper-middle income of the chance to come here with children for family vacations, or would create such conditions that would make it significantly more difficult for our citizens to stay here with their families: it’s a completely different atmosphere.” Sochi having a high international profile as a tourist destination following the Olympics may be very different from Crimea, however, much of the reasoning behind Putin’s comments could equally be applied: the Crimean Riviera is if anything even closer to Azov City than Sochi, albeit without the land connection.

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

CR138-p02-03-World_Coinslot NEW 09/04/2014 09:18 Page 1

News World

BUSINESS STRATEGY

Casino Carrasco to open more doors to the public

URUGUAY

Missing target after target, the century-old Hotel Casino Carrasco must find a new way to operate, according to just-appointed boss Robert Heller. Despite recent refurbishment, more work will come: there will be new doors, more entertainment and more appeal to a wider range of customers. year after opening, a year in which an end to the refurbishment work was repeatedly delayed and in which revenues lagged far behind what was expected, Casino Carrasco in Montevideo is to restructure, according to the new general director of the operating company Carrasco Nobile Robert Heller. Heller’s predecessor Guillermo Arcani resigned in December after five years overseeing the redevelopment project on the iconic hotel. The casino and hotel complex had a glittering opening ceremony in March

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2013 but it soon became apparent that substantial amounts of remedial and improvement work in and around the building had not been completed, resulting in fines totalling more than US$800,000. Heller told the city commission now monitoring the licence: “Our plan is to create an identity and a entertainment centre for Montevideo. We will have entertainment in the casino, in the hotel, in the lobby, in the bar. The image that will be in the media is that we are a place of enter-

tainment, with a new stage and a repositioning of the casino.” He continued: “We are planning to make new entrances, because today there is only one. We will remodel the casino. We don’t have a sign on the front of the casino telling people what we are; there is no movement, no lights. These are basic concepts in any business but unfortunately we don’t have them. We will improve the project: there will be shopping malls, stores to attract people who are walking down

the street, coffee shops outside. The idea is to enjoy it with the community, for anyone to feel welcome anywhere in the hotel. At the moment, we have an exclusive image and that’s what we want to change. “We want to create an attractive space: we want people to see, to approach, to enter and experience it,” said Heller. The plan is a conscious step away from super-luxury experience that was the original business model for both the hotel and the casino. It depended on

attracting foreign high rollers in particular, which it has been unable to do. “We intend to attract players from across Uruguay, from abroad and from the local area,” said Heller. “We will also increase the return to player and have the bestpaying slots in the country. Our location makes access more difficult than other places in Montevideo. Our idea is to increase the volume in order to create more opportunities to win. We’re going to change the design of the casino, create a good

CR138-p02-03-World_Coinslot NEW 09/04/2014 09:21 Page 2

URUGUAY / YXYXYXY VIETNAM

ICR NEWS SECTIONS: WORLD 1-5 EUROPE 6-11 ASIA & OCEANIA 12-17 AFRICA & MIDDLE EAST 18-19 NORTH AMERICA 20-23 SOUTH & CENTRAL AMERICA 24-27 COMMENT & ANALYSIS 28-29

ANALYSIS e learn from the Hotel Casino Carrasco that South America cannot supply or attract enough high rollers to make them the core of an ambitious business plan. It may have more to do with poor management and an unfortunate combination of financial difficulties affecting one of the major shareholders but while that will not have helped, it is unlikely to be the major reason. There might be improvement and growth combined with relative stability in ever more South American economies, but the fact remains that high rollers like to play elsewhere. In recognition of that fact, opening the casino to much wider demographics is the only sensible decision that the Carrasco management can make.

Hotel Casino Carrasco will undergo even more refurbishment just as the last projects are ending

first impression with everybody. We are ready to go out into the market and in a short period have an impact on this.” The refurbishment work on Hotel Casino Carrasco due finally to be completed by March 7 deadline and the operator applied for a certificate on March 6. That gives inspectors 30 days in which to check that all the work has been carried out to the proper standard, and if there are any failings, the operator could be liable to another fine or be put “under observation”.

LEGISLATION

CASINO PROJECT

New gambling legislation proposed in Uruguay

Vietnam casino plan salvaged The stalled resort casino development near the Vietnamese city of Da Nang could open as early as the end of 2015.

URUGUAY

he executive branch of the Uruguayan government led by President Jose Mujica has submitted a draft bill to the legislative General Assembly that would create a new gaming control board and restructure the way the activity is controlled. The proposed legislation wants to capitalise on the recent growth of gaming in the South American nation and seeks to create the new National Management of State Gambling and Casinos state body with control over all types of gambling The draft bill would institute a firm state-controlled monopoly over all forms of gambling and betting including lotteries, casinos, horseracing and football pools alongside online and telephone wagering. The new authority would also replace the current National Administrative Board of Casinos and have right to license or close any casinos. In addition, the proposals would abolish the existing Uruguayan Board of Lotteries and Pools Betting and establish in its place the Betting and Gaming National Comptroller’s Office with responsibility for supervising the financial reporting of state-licensed lotteries. According to the most recent figures released by the left-leaning Broad Front coalition government, Uruguayans spent $900m (E652.1m) last year wagering on lotteries, casino games, slots and pool betting. With year-on-year growth over the past decade, the industry has also been blighted by a rise in illegal outlets and it is hoped that this new legislation will go a long way to eradicating some of the estimated 20,000 unlicensed machines located in shops and small businesses around the nation and pulling in around $3.2m (E2.3m) a week. The proposed legislation would institute tough penalties for anyone convicted of conducting illegal gambling activities including prison sentences of up to three years.

VIETNAM

fter being idle for some 18 months, plans to build a $4bn (E2.9bn) destination resort casino near the Vietnamese coastal city of Da Nang are back on track after supporters revealed a plan to secure funding from American financier Peninsula Pacific. Vietnam-facing fund manager and property developer VinaCapital stated that Los Angelesbased Peninsula Pacific wants to finish the 500-room South Hoi An luxury hotel on a government-sponsored 1,000 hectares economic development zone in the central province of Quang Nam by the end of 2015 with gaming activities following soon after. The chairman for Peninsula Gaming, Brent Stevens, is the founder of Peninsula Gaming, which owned casinos in the states of Iowa, Louisiana and Kansas before being sold to Las Vegas-based Boyd Gaming in 2012 for $200m (E145m) in cash and $1.2bn (E870m) in debt. “After discussions with many companies, VinaCapital decided to partner with casino developer Peninsula Pacific, a firm that has developed seven similar projects in the United States,” read a statement from Quang Nam’s Chu Lai Economic Zone Management Authority. South Hoi An was initially planned by VinaCapital in partnership with Genting Group but the Malaysian conglomerate pulled out in September of 2012 despite the site being partially cleared. This forced VinaCapital to find other

partners and it attempted to make the project more attractive by reducing the land allocation by one-third, extending the license by 50 years and increasing the number of gaming tables from 20 to 90. The entire project will now be put before the Communist Party’s Politburo but hopes are high that it will be approved as Vietnam looks to attract foreign investment through tourism. Although current regulations prohibit locals from gambling, millions of the nation’s citizens travel to nearby Cambodia, which leads to an exodus of currency and tax revenues. In hopes of recovering some of

these funds, the National Assembly is reportedly gearing up for a vote that would loosen the ban as part of a plan to better regulate the industry. Some ten of the nation’s 63 provinces have so far applied for casino licences with the government also keen on seeing the MGM Grand Ho Tram development on the South China Sea about 70 miles from Ho Chi Minh City achieve success. Developed using American and Canadian investment, the $500m (E362m) resort is the largest of its kind in the history of the Asian nation but is reportedly struggling due to a lack of domestic players.

April 2014 casinoreview

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News

JAMAICA / MACAU / NEW ZEALAND

World

Macao Gaming Show 2014 18-20 November Venetian Macao

JAY CHUN: “BY ASIA FOR THE WORLD IS NOT ONLY OUR UNIQUE SELLING POINT BUT IT ALSO ENCAPSULATES THE ESSENCE OF WHAT MACAO GAMING SHOW IS REALLY ALL ABOUT.” EXHIBITION

DESTINATION RESORT

Montego Bay site for Jamaica casino JAMAICA

Macao Gaming Show sends signal of intent MACAU

There’s a new kid on the Asian expo block and it carries some significant weight and gravitas in the region. The Macao Gaming Show is aiming to raise the bar high as it sets out its stall on joining the head table of international gaming events.

‘

y Asia for the world’ is the creative theme unveiled by organisers, the Macau Gaming Equipment Manufacturers Association, in support of their 2014 event which is taking place across 18-20 November at the Venetian Macao. The largest gaming show created in Macao, organisers are promising an even bigger and better event as they build on the accomplishments achieved in 2013 when MGS welcomed more than 8,000 visitors in its inaugural year. Unveiling its 2014 marketing campaign, Mr Jay Chun, chairman of Macau Gaming Equipment Manufacturers Association, explained: “By Asia for the world is not only our unique selling point but it also encapsulates the essence of what Macao Gaming Show is

really all about. MGS 2013 was attended by key decision makers, high level casino bosses and influential regulators from around the globe. Once again we will be reaching out to these influential individuals, providing an opportunity for suppliers and participants to market directly toward what are key buyers and influencers. “The MGS 2014 ‘By Asia for the world’ campaign will be backed by a high profile marketing commitment utilising the most influential online and offline gaming industry media channels. The campaign will help MGS exhibitors to target buyers from Asia and reach out to casinos, integrated resorts, gaming regulators and gaming affiliated businesses.” Mr Jay Chun added: “MGS 2014 will be packed with invaluable business networking

opportunities at which attendees can meet and get to know potential business partners in a relaxed and casual atmosphere. Add to this the highly acclaimed Slot Experience Center as well as the three day Macao Gaming Summit and you can see why MGS is regarded as being such a business critical event.” Macau Gaming Show targets the entire gaming industry with exhibitors drawn from Gaming Equipment and Accessories, Gaming Promoters and VIP Clubs, Casino Fixtures and Fittings, Promotional Services and Memorabilia, Food and Beverage as well as Entertainment and Performance. For more information and to book your place at Asia’s ‘must attend’ gaming exhibition contact enquiry@MacaoGamingS h o w . c o m : visitMacaoGamingShow.com

REVENUES

New Zealand gambling spend on the rise NEW ZEALAND

ew Zealanders spent more than NZ$2bn (E1.3bn) on the nation’s four types of legalised gambling during the 2012/13 financial year despite a drop in spend associated with the dominant gaming machine sector. According to a Department of Internal Affairs report, gamblers in New Zealand wagered NZ$294m (E185.8m) on racing and sportsbetting over the 12-month period, which represented an increase on four percent year-on-year, while lottery spending

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rose by 3.1 per cent to NZ$432m (E273.1m). Casino expenditure swelled by 2.1 per cent year-on-year to NZ$520m (E328.8m) although spending on gaming machines in pubs and clubs decreased by over three percent to NZ$826m (E522.2m). However, the report found that total gambling expenditure for the year after inflation adjustment actually fell by almost 19 per cent when compared with the peak of NZ$2.569bn (E1.624bn) recorded in 2004. The only one of the four forms of gambling that held up when compared with a decade ago was lottery, which has improved by some 22 percent. The government estimated that NZ$637m

(E402.8m), or 31 percent of the total annual expenditure, was distributed to a variety of community causes and charities with noncasino gaming machine trusts raising around NZ$290m (E183.4m). NZ Lotteries transferred NZ$202m (E127.7m) to the Lottery Grants Board for community services and projects while the New Zealand Racing Board was allocated NZ$142m (E89.7m) mostly to support racing club activities and infrastructure. For their part, casinos paid just over NZ$3m (E1.89m) to their community trusts while a new problem gambling tax netted NZ$54m (E34.1m) from all gambling operators.

onstruction on the first Las Vegas-style casino resort in Jamaica could begin in a few months after operator Celebration Jamaica Development revealed that it had narrowed prospective sites down to one of four areas around Montego Bay. Celebration was one of the firms that applied for a licence to open a destination resort casino under 2010 legislation designed to increase tourism around the island nation’s second largest city. The first phase of the proposed development, which will consist of the casino and a 1,000-room hotel, could break ground as early as the summer in one of four parcels of land being considered in St James Parish. Robert Trotta from Celebration revealed that the whole project is scheduled to be completed in three years once government approval is granted and will encompass a 2,000room hotel and a state-of-the-art entertainment complex with a 75,000 square foot casino and sportsbook in addition to bars, restaurants, health clubs, a spa and kid’s club and retail space. “We have a full brand new convention centre right here in the middle of Rose Hall [and] we are ten minutes from the airport,” said Trotta. “There is no better place in the Caribbean to put a casino development today than Montego Bay, Jamaica, trust me.” Trotta said that the development, which must still be approved by the government, will employ some 4,000 full-time workers and create 16,000 jobs in total: “And it will play an extremely important role in developing the tourism base, increasing tourism to Jamaica and it will have a huge economic impact not only for the country of Jamaica, the employment in Montego Bay but also the investment capital to fund a project of this kind. So it’s a win-win for everyone.”

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CR138-p04-10-Europe_Coinslot NEW 09/04/2014 09:27 Page 1

News Europe

LICENCES

UNITED KINGDOM

The last of the UK’s eight large casino licences is up for grabs in Southampton, as the local council announces the start of a yearlong bidding process.

Southampton opens doo for casino proposals

he competition to obtain a large casino licence in Southampton, at the heart of England’s southern coastline, has been officially opened by the local city council. A comprehensive twostep programme has been established to vet any potential operators, with a deadline of July 1, 2014, in place for the initial stage of the application process. The last of eight locations permitted to award a large casino licence in the UK,

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Southampton presents potential developers with one of the country’s most attractive gambling propositions. Ideally located on the England’s south coast, more than 2.7m people live an hours’ drive away, and the city is also a regular stopping point for over 1.5m yearly cruise ship passengers. The construction of a new casino is expected to complement a city-wide regeneration initiative that will create 24,000 new jobs and 5,000

new homes. The manner in which each of the proposed casinos would cohere with this redevelopment programme will be a major consideration when it comes to second stage evaluation. Passing the first hurdle simply requires that operators are able to demonstrate to the council that they are fit to hold a large casino licence. The window for these submissions has already opened, with the more substantive second

stage currently scheduled to begin after the summer. The bulk of the evaluation process will centre on the gross added value of each proposal, with close scrutiny being given to how well it meshes with the council’s existing investment. A total of 700 points is on offer for plans that promote physical regeneration, tourism and employment. The remaining 125 points will be awarded to those proposals which include a robust financial

estimate, including payments made to the council beginning in the sixth year of operation. Stage two of the application process will see each proposal awarded a maximum of 1000 points, broken down into three separate criteria. Each suggested venue must detail its plans to meet the minimum legal standard of problem gambling prevention, but those bids which outline a proactive or innovative solution could be

CR138-p04-10-Europe_Coinslot NEW 09/04/2014 09:28 Page 2

EUROPEAN UNION / FINLAND / FRANCE / NETHERLANDS / POLAND / SPAIN / UNITED YXYXYXY KINGDOM Bad research, bad policy 28

UNIVERSITY OF LONDON: VITAL RESEARCH NEEDED TO MAKE REFORMS TO THE GAMBLING INDUSTRY IS BEING HAMPERED AND BLOCKED ACCORDING TO A REPORT FROM GOLDMSITHS.

CITY CENTRE MASTER PLAN • Southampton’s City Centre: Master

•

Plan focuses on transforming seven areas of the city centre over the next 20 years, many of which are already undergoing extensive changes: Cultural Quarter: The city’s burgeoning Cultural Quarter will be further developed to include a new arts complex alongside Guildhall Square, overlooking the central parks. Fruit and Vegetable Market: The redevelopment of this area will create new homes and businesses that respect the Old Town while injecting new energy and interest into this part of the city centre. Heart of the City: Development opportunities in the heart of the city concern four key areas and offer space to create a mixture of exciting new retail, dining, nightlife, housing and business. Itchen Riverside: Developments may see the creation of a waterside community with amenities, residential areas, plus leisure facilities and a waterfront sports academy. Royal Pier: The Royal Pier development project is a £450m (E543m) development that will transform the landscape of Southampton’s waterfront. Southampton Solent University: The university enjoys a prominent location overlooking the central parks, with opportunities to grow, providing additional space for teaching, sports and recreation, conferences and student accommodation. Station Quarter and Western Gateway: Once realised, the plans for the Station Quarter will create an exciting arrival experience.

door awarded up to 125 points. “Any new casino will be required to specifically address problem gambling as part of their licence conditions,” said Councillor Jacqui Rayment, “and contribute in time and financially towards helping to minimise and deal with such issues. Close scrutiny will be given to this issue during the application process both by the Advisory Panel, which will include problem gambling experts, and the Licensing Committee itself.”

CASINO PROJECT

Businessman bidding to open Preston casino

UNITED KINGDOM

n historic building in the centre of Preston could soon host the UK’s newest casino after owner Edgar Wallace announced that he was working with the National Casino Industry Forum (NciF) to obtain a licence. Wallace, the man behind Preston Plastics, is supporting a motion currently working its way through the House of Commons that would make casino licences portable and hopes to bring a casino to the top two levels of the former Preston Conservative Club early next year. The three-storey venue was built in 1878 but has largely sat empty since August of 2011 with proponents for a casino pointing to nearby towns that have licences but no casinos. “At the moment you can’t open a casino in Preston because the city doesn’t have a licence,” said Graham Parr, an agent for Wallace. “There are 40 places includ-

ing places like Lytham that have one but nobody is interested in opening a casino there. So this portability motion is aimed at transferring the licences from these other towns to places where there is interest. We’re hopeful that the portability motion will go through early in the New Year and in the meantime we’re organising a case for planning consent ready for when Preston gets the goahead.” This is not the first time the venue has been considered as an ideal spot for a casino with previous owner Steve Jackson holding unsuccessful talks in 2007. Current tenant Raymond Chung, who opened new Chinese restaurant in the building’s bottom level last month, is in favour of the proposal. “It’s exciting for Preston,” he said. “At the moment people go to Blackpool or Manchester to use casinos and money is taken out of Preston. This would attract people into the city centre and keep money in the local economy.”

EUROPE ROUND-UP onsolidated annual revenues for Greek lottery and gaming group Intralot have surpassed the E1.5bn mark for the first time with the firm reporting a twelve percent increase year-on-year to E1.539bn. Athens-based Intralot supplies integrated gaming and transaction processing systems, game content, sportsbetting management and interactive gaming services to state-licensed organisations around the world, and declared that its net profits for the year had jumped 36 per cent to reach E21.3m. In Malta, Dragonara Gaming has inked a longterm collaboration agreement with Poker Travel

Israel that will see around 5,000 players from the western Asian state visit its Dragonera Casino (pictured) each year. The St Jullian’s casino is hosting the Dealer EM tournament in September followed two months later by a stop on the Deep Stakes Poker Tour and revealed that the arrangement represents approximately 16,000 bed nights. Further north, minority political groups in the Italian town of Saint-Vincent have banded together to demand that the leadership of the local Casino de la Vallee resign amid worsening labour relations. The casino in the semi-autonomous Valle D’Aosta region is one of only four in Italy and workers have been striking in protest at job cuts brought on by recent poor financial results. The assembly has also proposed that the Regional Council and President of the Region appoint a special task force consisting of casino workers and representatives from every political party to study recovery strategies. Continuing north, Helsinki-based gaming software provider Finnplay has signed a deal to provide Belgian online casino SuperGame.be with its gaming platform. Finnplay stated that its technology has already been approved by the Belgium Gaming Commission and will enable SuperGame.de to deliver its products and services to players in Belgium rapidly while additionally permitting the integration of third-party games. April 2014 casinoreview

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News Europe

Focus on projects 44

ALEXANDER TUCEK (CAI): “OUR CORE STRENGTH LIES IN CASINO MANAGEMENT, NOT IN THE CONSTRUCTION OF CASINO BUILDINGS OR RESTAURANTS.”

ACQUISITION

PRIZE-MONEY

Century Casinos boosted by Polish acquisition

Prize of a lifetime for Holland Casino player

Last year’s purchase of Casinos Poland has proved successful as Century Casinos report a 20 per cent increase in annual earnings. POLAND

fter purchasing an additional stake in Casinos Poland a year ago, landbased and cruise ship casino operator Century Casinos has reported a 46 per cent increase year-on-year in annual net operating revenues to $104.6m (E75.9m). Based in the American state of Colorado, Century Casinos had adjusted earnings before interest, tax, depreciation and amortisation for 2013 of $12.6m (E9.1m), which was a boost of 20 per cent year-on-year, while net earnings attributable to shareholders rose by 51 per cent to $6.2m (E4.5m). For the fourth quarter, the firm

declared net operating revenues of $29.4m (E21.3m), which was a 66 percent swell when compared to the same period in 2012, while adjusted earnings before interest, tax, depreciation and amortisation improved three per cent to $2.2m (E1.5m). This meant that the Colorado Springs-based operator reported a net loss of $200,000 (E145,211) for the final three months of the year, a 134 per cent decrease year-on-year. Century Casinos stated that the year-on-year increases in net operating revenues and adjusted earnings before interest, tax, depreciation and amortisation are

due to the ‘inclusion of operating results’ from Casinos Poland beginning in the second quarter. This operation and its seven casinos had net operating revenues last year of $34.8m (E25.2m) alongside adjusted earnings before interest, tax, depreciation and amortisation $2.74m (E1.98m) to rank as one of the American firm’s most important areas of operation. “Since the end of the third quarter of 2013, it has been quite challenging for casino operators in many regional North American gaming markets and we were certainly no exception to that trend,”

read a statement from co-chief executive officers Erwin Haitzmann and Peter Hoetzinger (pictured). “Our business performed behind expectations mostly because of unusual external challenges such as the devastating floods in Colorado and Calgary in the summer and the strong storms in the winter. During 2013, against a backdrop of ongoing uncertainty in the macroeconomic picture and consumer weakness in most of the markets that we operate in, we made significant progress with the implementation of our strategy to increase shareholder value. From an operational perspective, we diligently focused on refining and adjusting our product, our marketing and our amenities. We’ve also improved our operational and financial flexibility, which will allow us to consider a variety of potential growth opportunities that we believe will create significant value for our business and our investors in the years to come. We are particularly excited about the development progress and potential of the Century Downs racetrack and casino in Calgary.”

PARTNERSHIP

RAY signs playing card agreement FINLAND

inland’s slot machine association, Rahaautomaattiyhdistys (RAY), which operates one international casino, 200 table game locations and numerous arcades around the country, has signed an agreement with Swedish casino distributor ICM Casino management (ICM). Under the terms of the agreement, ICM becomes the exclusive supplier of playing cards to RAY. The group’s Casino Helsinki has previously collaborated

with ICM across several distribution channels. Stockholm-based ICM won the public tender issued by RAY, and the company will supply the association with cards from reputed Italian manufacturer, Dal Negro, which has developed the production of playing cards since 1928. Commenting on the agreement, Marko Hurme, vice president of casino operations for RAY, said: “We are very satisfied with the service and quality that ICM provides and we are excited to use the Dal Negro cards, especially when they

8 | casinoreview April 2014

performed so well in the three-day trials where we tested the playing cards for handling, durability and quality.” ICM CEO Wolfram Dahlström added: “We have supplied Casino Helsinki since 2005 and it has been a successful collaboration. Signing this exclusive deal makes us proud and we are looking forward to maintain and enhance our collaboration. Since we first started working with Dal Negro we have appreciated their products and swift service on both artwork and production.”

From left to right: Timo Kiiskinen senior vice president of business operations for RAY, Marko

Hurme, vice president of casino operations for RAY, and ICM CEO, Wolfram Dahlström

NETHERLANDS

30-year-old in the Netherlands took home a life-changing cash prize of almost E3m last month courtesy of the Holland Casino in Enschede and its Mega Millions Jackpot progressive slot. Enjoying a night out with a friend on March 22, the unnamed winner wagered E7.50 and was then stunned when a confetti canon exploded and bells and whistles went

off in concert with every other Holland Casino venue in the country to announce his record E2.96m windfall. “Personnel and casino visitors rushed to him to congratulate him but he was calm like it still had to sink in,” said Johan De Kruijf, manager for Holland Casino Enschede. “When the man called relatives to tell them of his win, they didn’t believe him at first. They probably will not doubt it anymore when the money is deposited in his bank account tax-free.” De Kruijf revealed that the winner was still unsure of how to spend his new-found wealth: “He said he will probably buy a new house and a new car and he would like to once take part in the World Series of Poker. Sounded like a nice challenge.”

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CR138-p04-10-Europe_Coinslot NEW 09/04/2014 09:29 Page 4

News Europe

Dealing a winning hand 53

EUROPEAN DEALER CHAMPIONSHIPS: “THE CHAMPIONSHIP PROVIDES EUROPEAN DEALERS WITH THE OPPORTUNITY TO SHOWCASE THEIR HIGH LEVEL OF PROFESSIONALISM.” LEGISLATION

ECA calls on EU Directive expansion

The European Casino Association has called for a “coherent extension” of all forms of gambling in the European Anti-Money Laundering Directive.

TAXATION

BCN World developers pursue casino tax cuts SPAIN

n light of the European Parliament’s recent vote on its report on the 4th European Anti-Money Laundering Directive, the European Casino Association (ECA) has called on the upcoming so-called “trilogue” discussions between the European Commission, European Parliament and the Council, to ensure that the extension of all forms of gambling under the scope of the Directive is enshrined and handled in a way that ensures an overall workability for legal operators to conduct business. The extension of its scope to the online gaming industry and other forms of gambling is of particular significance. Previously, only land-based casino operators were subject to antimoney laundering rules.

Ron Goudsmit (pictured), chairman of the ECA, explained that “this broadened scope will help to ensure that all forms of fraud and money laundering through online gambling or match-fixing are prevented, and will create a level playing field between all gaming operators as well as lead to better consumer protection in the European Union”. The ECA said it would have liked to see the implementation of an encompassing risk-based approach and regretted that this approach was only partially reflected in the report, as it states that Member States shall apply customer due diligence measures for casinos, “when carrying out occasional transactions amounting to E2,000 or more, whether the transaction is carried out in a single operation or in several operations which appear to be linked”.

“ECA believes that a realistic risk-based approach would have led to apply the customer due diligence to casinos, when carrying out occasional single transactions amounting to E3,000 or more, so as to ensure that anti-money laundering rules do not put undue and unnecessary burdens on the business,” the association said. “Tracking down each customer’s behaviour or movement would seriously impact the casino industry,” Goudsmit explained. “This implementation of a risk-based approach which requires that casinos have a sound understanding of the risks and are able to exercise sound judgement - makes the detection of suspicious activities more likely and improves the quality of suspicious transaction reports. It should therefore result in a more cost effective use of

resources.” The 2012 International Standards on Anti-Money Laundering and the Financing of Terrorism and Proliferation issued by the Financial Task Force (FATF) recommends a threshold for customer due diligence amounting to E3,000. “As one of the goals of the revision of the 3rd Anti-Money Laundering Directive is to ensure it is inline with the International FATF standards, it is difficult to understand why the EU Directive does not implement the same FATF threshold, particularly as a lower threshold leads to a heavier and unnecessary administrative burden for casinos,” said the ECA. “The ECA believes that strong regulation can and should go hand in hand with overall business workability. It therefore does not favour the status quo regarding the threshold of E2,000.

PERFORMANCE

SFC refocusing as turnover increases FRANCE

rench casino operator Societe Francaise de Casinos (SFC) has revealed that its turnover for the three months to the end of January reached E5.1m, which represented an increase of 4.1 per cent year-on-year. SFC operates casinos in Gruissan, Chatel-Guyon, Port la Nouvelle and Collioure along with a virtual games centre in Passage des Princes in Paris along with similar venues in the Belgian cities of Tournai and Mons. The firm stated that its finan-

cial situation had not changed “significantly” when compared with the three months to the end of October 2013 while any casino growth had been more than offset by a decline in its virtual games business. A Paris Court of Appeal

10 | casinoreview April 2014

decision in February saw SFC win a case brought by fellow operator Atlantis SAS regarding the transfer of a venue in Agadir while the firm now intends to strategically refocus its business exclusively towards casinos, its historical area of expertise. It is hoped

that this move will allow SFC to strengthen its financial resources and permit it to continue investing in its properties while meeting any financial deadlines. In addition, SFC recently signed a memorandum of understanding that will see it sell its previous Virtual Games: Head in the Clouds venues for an undisclosed amount to an operator referred to as ‘a future market leader’. This deal, which must still be approved by Commercial Court, could be completed before the end of June providing the purchaser obtains the requite funds.

ust three months after Las Vegas Sands’ announcement that it had scrapped plans to build its multi-million dollar ‘EuroVegas’ project near Madrid, Convergència i Unió (CiU), the ruling party in Catalonia, has taken a step towards helping realise the development of a new mega-resort near Tarragona. BCN World - formerly Barcelona World - is a planned E4.5bn ‘macro-complex’ of tourism, leisure and gaming on the coast of Tarragona. Utilising the existing infrastructure of the iconic PortAventura theme park, the 8sq.km site will include several hotels, casinos, arcades, a theme park, a waterpark, golf course, a beach club, convention centre, movie theatre, offices, shopping centres, restaurants, swimming pools and a range of sporting options. Last month, the CiU reached a tentative agreement with developers that would lower the taxation of casinos at BCN World. Press reports emerging from the region suggest that the socialist deputy Xavier Sabate will meet with the Minister of Economy, Andreu Mas-Colell, to negotiate the details over the coming days. The CiU recently signed an agreement with real estate group Veremonte in order to prioritise the recruitment and training of unemployed workers in the area, as ramps up its efforts to see BCN World come to fruition. “We are seeking formulas to start work after summer, even if this means earthmoving with a provisional permit,” said Veremonte managing director, Xavier Adserà. The executive anticipates that 30,000 direct jobs will be created. “We would prefer to train people from the area or locals who have gone abroad to train, rather that looking for people from overseas who know how to work in a complex of this kind.”

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CR138-p12-16-Asia_Coinslot NEW 09/04/2014 09:51 Page 1

News

Asia & Oceania

With no presence in Asia, Caesars Entertainment has been unable to take advantage of the massive revenues being generated there by its US competitors: now at last it seems to have gained a small but significant foothold in South Korea.

An artist’s impression of Caesars’ proposed integrated resort

INTERGRATED RESORT

Major boost for Caesars’ South Korean plans SOUTH KOREA

aesars Entertainment has been given preliminary approval for an Integrated Resort in South Korea, the company has announced. Through LOCZ Korea Corporation, a joint venture with Lippo Group and OUE Limited, the plans for a large casino-based leisure complex next to the main Incheon Airpot serving Seoul on the island of Yeongjong, look set to proceed. Gary Loveman, chairman, CEO and president of Caesars, said: “We are grateful to the Korean government for their initial approval, paving the way for

12 | casinoreview April 2013

the opportunity to build and operate our first integrated resort in Korea.” If it gets final approval, the resort will feature hotels and resort amenities along with live entertainment, a standalone convention centre and a foreigners-only casino. Loveman added: “We are excited about the opportunity to expand our network and brands to Asia. Foreign visitation to South Korea has grown significantly, and we look forward to creating a world-class destination to further support Korea’s economic growth and tourism goals.”

International casino operators have been vying to find - or create - the next big destination for casino players mostly from China. Incheon has the advantage of being the nearest location in terms of flying time to the huge markets of Beijing, Qingdao and Shanghai and help meet the demand that even Macau is struggling to keep up with. Where Macau’s growth, rapid as it continues to be, is somewhat hampered by restrictions in the labour force, there will be no such problems for LOCZ, which hopes the venue will be up and running in time to cater

to visitors arriving for the 2018 Winter Olympics in Peongchang. The resort will cost up to around US$800m (E580m) to complete and expects to attract up to 10m visitors per year, with capacity to meet any increased demand if necessary. Once complete, it will create upwards of 3,500 permanent jobs. Caesars said it may include in the deal its recently spun-off subsidiary Caesars Growth Partners, which has just bought the former Harrahs properties in Las Vegas from its parent: that company may be able to bring the investment

needed and also help Caesars to avoid any difficulties it may face in obtaining a gaming licence because of its $23.5bn (E17bn) debt burden gained when it underwent a leveraged buyout in 2008. Caesars’ first application to operate in Korea was turned down last June over concerns about its financial health. An application by Kazuo Okada’s Universal was rejected at the same time. After lobbying, Caesars managed to get the Ministry of Culture, Sports and Tourism to reconsider with this happier outcome. There are currently 16

CR138-p12-16-Asia_Coinslot NEW 09/04/2014 09:52 Page 2

AUSTRALIA / MACAU / NORTHERN MARIANA ISLANDS / SINGAPORE / SOUTH KOREA / YXYXYXY VIETNAM Back on in Vietnam 3

DA NANG INVESTMENT: AFTER BEING IDLE FOR SOME 18 MONTHS, PLANS TO BUILD A $1.4BN DESTINATION RESORT CASINO NEAR DA NANG ARE BACK ON TRACK.”

ASIA ROUND-UP

REVENUES

ANALYSIS hough describing itself as the world’s “most geographically diverse” casino company, Caesars Entertainment has a large empty space on its operations map: Asia. While others planted magic beans and have ridden vigorous beanstalks to great riches, nothing planted by Caesars has yet germinated. Without the massive injection of Asian cash, instead it has had to try and service is vast debt through operations in markets that struggled in the long after-effects of the 2008 economic crisis. There are few markets in Asia now where Caesars would be able to make good enough money to help it finally out of the pit it has dug for itself - fortunately South Korea is one of them, and the company has done well to persuade Seoul to reexamine its case. The company has been in the manure for too long, an environment too hot to get anything to grow. It must now hope that the ground on Yeongjong island is fertile.

foreigner-only casinos in South Korea, with several more in the pipeline including as reported in the last issue of International Casino Review, a large resort on Jeju island off the south coast to be built for $2.2bn (E1.6bn) by Genting. A sign of the potential strength of the market is that Wynn Resorts, MGM International and Las Vegas Sands also have applications pending. There is one casino only where Koreans are permitted to play, the Gangwon Land Casino at the High 1 ski resort in the eastern province of Gangwon.

Macau revenue continues to climb MACAU

acau’s souring gambling income continues to surge, with collective revenue of $4.4bn reported for the month of February. That marks a 13.1 per cent increase over the same period in 2013 and brings this year’s total revenue to $12.6bn. This leaves Macau’s Q1 total up 19.8 per cent over figures from twelve months ago, ahead of most predictions. Following the news, shares in US casino operators Las Vegas Sands and Wynn Resorts saw a 3 per cent bump. Both companies manage large resorts in the special administrative region. Continued growth in Macau has worked to offset a disappointing period in Las Vegas for Sands, with the Chinese gambling mecca continuing to outpace its North American counterpart.

lans to build the $2bn (E1.45bn) Manila Bay Resorts hotel and casino complex in the Philippines’ new Las Vegas-like Entertainment City cluster could be in jeopardy after a dispute arose between Japanese gaming magnate Kazuo Okada and Century Properties Group. Okada is the man behind Eagle I Landholdings, which owns the 44ha plot of land where the development is to rise, had earlier agreed to sell 36 percent of the project to Century Properties in exchange for $12m (E8.72m). Century Properties wants to build a casino in addition to 300,000sq.m of luxury residential and retail properties on five-hectares of land on the site but Okada is now attempting to renege after a third company, First Paramount Holdings 888, backed out of the previously signed deal. In Australia, a man who admitted organising an illegal poker tournament via Facebook and then holding the competition in his home has escaped

“In Macao, we delivered record financial results, with strong growth and operating momentum reflected in every segment of our business,” said Las Vegas Sands CEO, Sheldon Adelson. “We remain confident that our marketleading Cotai Strip properties will meaningfully enhance the appeal of Macau and the Cotai Strip to business and leisure travelers and provide an outstanding platform for growth in the years ahead.” Macau’s February figures are expected to outstrip March, thanks in part to the New Year Golden Week celebration that traditionally takes place in the first or second month of the Gregorian calendar. Macau remains the only legal casino location in China, with visitors from the mainland traveling across the border in their millions to visit the huge resorts that flank the region’s Cotai Strip.

LEGISLATION

Saipan legalises casino gambling

NORTHERN MARIANA ISLANDS

casino could soon come to the Pacific Ocean island of Saipan after the government controversially legalised casino gambling in a bid to attract more tourists and raise additional tax revenues. Governor Eloy Inos signed the Saipan Casino Bill into law last month despite opposition from the Saipan Chamber of Commerce over an alleged lack of transparency and the government’s failure to stem gambling additions from existing poker machines. The legislation would grant one operator an exclusive casino licence covering the whole of the nation so long as they had agreed to pay a $30m (E21.8m) fee while all applications are to be subject to a $1m (E727,143) non-refundable application charge. Saipan is part of the Commonwealth of the Northern Marianas Islands under the direct

rule of the US and was forced to institute a 25 per cent deferred pension cut after the fund declared bankruptcy in 2012. An initial measure to legalise casino gambling was shelved in November before being resurrected earlier this year and its passage could now see a casino for each one of the nation’s three main islands. But, the Saipan Casino Bill has also drawn criticism as it limits the annual tax paid by the sole licensee at $15m (E10.9m), which opponent’s state is not in the best interests of the electorate. “We at the Chamber do not necessarily reject gaming outright but the last three pieces of legislation that have come forward including this one have all not been in our view in the best interests of the people of Commonwealth of the Northern Marianas Islands especially with this bill calling for exclusivity to one permit holder for Saipan,” said Alex Sablan, head of the Saipan Chamber of Commerce.

conviction. David Desmond Bowen invited 25 friends to his Tasmania house in October with each stumping up AU$150 (E100) for the prize pool. Police were soon alerted but the defendant stated that he believed his game to be legal as he did not take a commission. Legal experts stated that there is some confusion in the local community about what is illegal when it comes to poker with 32-year-old Bowen subsequently given a two-year suspended sentence after earlier paying back the money. The government of Nepal has agreed to extend the time limit for casinos to obtain new operating licences after four previous deadlines came and went with no action. The Himalayan nation’s ten casinos are disputing new legislation that hopes to institute tougher regulations and higher tax rates with the venues being given until April 4 to clear their debts and apply for new licenses. The government revealed that it decided to extend the deadline after the Casino Association of Nepal wrote to it stating that they are willing to operate legally so long as the issue can be resolved through dialogue. April 2013 casinoreview

| 13

CR138-p12-16-Asia_Coinslot NEW 09/04/2014 09:52 Page 3

News

Asia & Oceania

Technological investment 34

LT GAME AND MACAU POLYTECHNIC: “IT SUPPORTS GAMING RESEARCH AND CULTIVATES BOTH CREATIVE MINDS AND PRACTICAL SKILLS OF THE STUDENTS IN THIS PROGRAMME.”

MERGERS & ACQUISITIONS

EXPANSION

Betfair’s Australian business interests Crown Resorts

LVS seeks more land in Singapore SINGAPORE

AUSTRALIA

asino operator Crown Resorts Limited is reportedly set to purchase Betfair’s Australian operation and gain the latter’s Tasmanian bookmaking licence in the process. According to a report from the Sydney Morning Herald newspaper, Crown Resorts wants to increase its current 50 percent shareholding in the joint enterprise while London-based Betfair is keen to sell after the business failed to live up to expectations. Controlled by Australian bil-

lionaire James Packer, Melbourne-based Crown Resorts recently posted is financial results for the six months to the end of December showing a 3.3 percent year-on-year increase in overall revenues to A$1.55bn (E1.04bn) while its net profit reached A$180.8m (E121.5m), which was a 111.6 per cent improvement on the same period in 2011. However, normalised earnings before interest, tax, depreciation and amortisation from its two Australian casinos fell 4.35 per cent year-on-year with an associated 0.6 per cent drop in main gaming floor revenues.

“VIP programme play turnover was well below expectations, particularly at Crown Melbourne, which was down 33.1 per cent on the prior year, reflecting the competitive challenges facing Crown Melbourne,” read a statement from Rowen Craigie, chief executive officer of Crown Resorts. Australia’s second-richest individual with a fortune valued at AU$6.6bn (E4.4bn), 46-yearold Packer is allegedly interested in grabbing a major stake in the billion-dollar sportsbetting industry and purchasing Betfair’s business in the country would allow him to change the

enterprise’s aims. Crown Resorts operates casino resorts in Melbourne and Perth while additionally holding a 34 percent stake in Macaubased operator Melco Crown Entertainment, which is the firm behind the City of Dreams enterprise. It also owns half of UK casino operator Aspinalls, 24.5 per cent of US firm Cannery Casino Resorts and was recently granted final approvals to develop a casino in Sydney. Its flagship Crown Melbourne annually hosts the southern hemisphere’s largest poker tournament series, the Aussie Millions Poker Championship.

PERFORMANCE

Vietnamese growth aids Donaco performance VIETNAM

sia-Pacific casino and hotel operator Donaco International has released its financial results for the six months to the end of December 2013, showing that it doubled its operating revenues when compared to the corresponding half-year period in 2012 to A$12.5m (E8.4m). Sydney-based Donaco operates the Lao Cai International Hotel in Vietnam near the border with China and revealed that the boutique hotel and casino experienced a 44 per cent increase year-on-year in VIP gaming turnover for the period to push its total earnings before interest, tax, depreciation and amortisation up by 48 percent to A$4.4m (E2.9m).

14 | casinoreview April 2014

venue due to persistent bad weather. “We are very pleased that despite the capacity constraints at the existing property, our Vietnamese casino operations continue to show robust growth, particularly in VIP turnover,” said Joey Kim, managing director and chief executive officer for Donaco. “The level of demand for gaming entertainment at the Lao Cai International Hotel gives us great confidence in the success of our new 428-room five-star property, which is now nearing completion. The board and management team have maintained our focus on Donaco reported that its half-year net ensuring that this project in completed on profit after tax had risen by nine percent year- time and under budget. In preparation for the on-year to A$2.9m (E1.9m), which repre- soft opening in May, our marketing team has sented a 21 percent boost excluding begun to reach out across China and is sourcnon-reoccurring items, despite a 3.2 percent ing patrons from outside Yunnan Province for decline in total visitor numbers to its Vietnam the first time.”

as Vegas Sands Corporation (LVS) wants to add some 1,500 rooms to its 2,563room Marina Bay Sands resort in Singapore and has asked officials on the island nation for more land. The proposed $6bn (E4.3bn) development project, which would increase the size of the existing resort by about 60 per cent and transform the Marina Bay Sands into the largest hotel in Singapore, is also set to include the addition of meeting rooms, ballrooms and exhibition spaces. LVS chairman Sheldon Adelson has met with government officials and revealed that the Marina Bay Sands is running at almost maxi-

mum occupancy: “We need more rooms. We are running at 100 percent occupancy; on a bad day, it’s 98 per cent. No other hotel in the world runs like this, except some in Vegas.” The existing venue boasts 1.2m square feet of meeting and convention space and two theatres hosting Broadway shows, concerts and gala events. Room revenues rose by eleven percent last year to $360.3m (E261.9m) off of an average occupancy rate of 98.6 per cent costing $396 (E288) per day. Las Vegas Sands, which recently abandoned plans to build a $30m (E21.8m) mega-resort in Spain, posted lower than expected fourth quarter earnings as revenues in Singapore fell eight percent year-on-year to $659.8m (E479.7m) due to ‘softer VIP play’ despite gains from the mass market sector and non-gaming activities. “We want to develop a network of resorts around the Pacific Rim,” said Adelson.

www.egt-bg.com

CR138-p12-16-Asia_Coinslot NEW 09/04/2014 09:53 Page 4

News

Asia & Oceania

Melco’s Dream

LAWRENCE HO: “WE WILL STRIVE TO BRING MORE FIRST-CLASS GAMING AND NON-GAMING OFFERINGS TO MACAU TO SUPPORT THE DIVERSIFIED ECONOMIC GROWTH OF THE CITY.”

ARCHITECTURE

Melco’s vision for City of Dreams coming closer to fruition MACAU

Acclaimed architect Zaha Hadid has been enlisted to design the fifth hotel tower for Melco Crown’s City of Dreams project in Macau.

elco Crown Entertainment has unveiled the project details and architectural design of the fifth hotel tower at City of Dreams, the company’s flagship premium property in Cotai. The group has partnered with award-winning architect Zaha Hadid on the design of the new hotel tower, which will add an iconic landmark to the Cotai skyline and the culturally rich city of Macau. Hadid, founder of Zaha Hadid Architects, was a winner of the Pritzker Architecture Prize - considered to be the Nobel Prize of architecture - in 2004, and has been included in Time magazine’s ‘100 Most Influential People in the World’ list, ranking top of the Thinkers’ category. “Melco Crown Entertain-

ment has always been in the forefront of innovation,” said Lawrence Ho, co-chairman and CEO of the group. “We are delighted to introduce the world-class architecture brand, Zaha Hadid Architects, into Macau and to showcase her creative work in City of Dreams. Dame Zaha Hadid’s distinctive design is closely aligned with our vision to provide unique entertainment experiences for our customers. We are confident that the new property will become an iconic landmark in Cotai and Macau and contribute meaningfully to tourism development through the enhancement of the cultural landscape.” Melco commenced the development of the new hotel tower at City of Dreams in 2013, and the

project is expected to open in early 2017. With 40 floors and a gross floor area of 150,000sq.m, the tower houses approximately 780 guestrooms, suites and villas exceeding five-star standards. The hotel also includes a variety of meeting and event facilities and distinctive features, including a 30m-high lobby atrium, selection of restaurants, spa, ultra lounge and sky pool. Ho added: “City of Dreams has been leading the way at the premium end of the market in Macau. The new hotel tower perfectly complements its already world-class gaming and non-gaming attractions and further broadens City of Dreams’ appeal to the increasingly sophisticated visitor to Macau.”

Hadid’s work is celebrated for its invention and dynamism as her practice applies advanced design, construction and material technologies to create unique spatial experiences. The design of the new tower combines dramatic public spaces and generous guest rooms with innovative engineering and formal cohesion. A series of voids carve through the centre of the tower, blending traditional architectural elements of roof, wall and ceiling to create an intriguing sculptural form that defines the exciting internal spaces within. “We deeply appreciate the ongoing support from both the PRC national and Macau governments, enabling our company to contribute substantially to the industry’s sustainable

development,” said Ho. “We will strive to bring more first-class gaming and nongaming offerings to Macau to support the diversified economic growth of the city and satisfy the growing demand for high quality leisure and entertainment from visitors from mainland China and beyond.” Melco is also developing Studio City, a new cinematically-themed integrated resort in Cotai. Set to open in 2015, Studio City represents a perfect complement to City of Dreams, which targets the premium end of the market, and Altira Macau, which caters to exclusive VIP guests.

PERFORMANCE

Full-year earnings up for Galaxy MACAU

acau casino operator Galaxy Entertainment Group has reported a 36 per cent increase in net profit for 2013, as visitors from mainland China continue to flock to its flagship properties, Galaxy Macau and StarWorld Hotel and Casino. Galaxy, one of six licensed operators in Macau, said net profit for 2013 was HK$10.1bn (E943m). Revenues for the group were up 16 per cent to HK$66bn ($6.2bn). Controlled by the Hong Kong-based Lui family,

Galaxy is expected to open a new phase of its Galaxy Macau property in 2015, making it one of the first operators to open a new casino as part of Macau’s second wave of expansion which will see eight new mega resorts built by 2017. Lui Che-woo, chairman of GEG, said: “Historic highs were achieved in revenue and earnings as all parts of the business performed ahead of last year. We strengthened our liquid balance sheet by reducing borrowings considerably, completed the strategic acquisition of the Grand Waldo Complex, and pressed on with our Cotai

16 | casinoreview April 2014

development plans that will provide guests with the widest available choice of entertainment, cultural and MICE facilities in Macau.” Turning to the medium and longer term, Galaxy said design plans for phases three and four of the Galaxy Macau development are in the final stages, and construction is expected to begin as early as late 2014. The $60bn (E5.6bn) project will increase the group’s total footprint in Cotai to two million square metres. “Macau’s prospects for the years to come are excellent,” Lui said. “Major infrastructure and transport projects will increase visita-

Galaxy Macau

tion and we are confident that the government’s prudent stewardship of the economy will ensure long term sustainability.

“Our well defined roadmap for growth also gives us confidence that we can fulfil our ultimate goal to be globally recognised as

Asia’s leading gaming and entertainment corporation and create substantial value for shareholders for many years to come.”

www.patir.de info@patir.de

CR138-p18-19-Africa_Coinslot NEW 09/04/2014 09:56 Page 1

News

Africa & Middle East PROBLEM GAMBLING

A self-excluded gambler has gone public over having played in two casinos while banned and is demanding his stake money back. Investigations by Gambling Board are underway.

SOUTH AFRICA

Gauteng casinos face fine over self-exclusion breac

he Gauteng Gambling Board is deciding whether two casinos in the province breached regulations by allowing a self-excluded gambler to play at their venues. Businessman Mahesh Kalidas barred himself from casinos across South Africa in 2012 after acknowledging he had developed problem gambling behaviour, however in October of that year, he visited the Emperors Palace and Montecasino on several occasions and won jackpots totalling hundreds

18 | casinoreview April 2014

of thousands of rands. Realising that Kalidas was excluded, Montecasino withheld his winnings and had him arrested for trespassing. In March, the Gauteng Gambling Board confirmed that a case had been opened. Head of Legal at GGB Lucky Lukhwareni said: “We are in a process of taking disciplinary action against the licensees. The disciplinary process entails the issuing of a charge sheet and affording the relevant licensee a chance to respond, convening a disciplinary hearing

wherein the licensee will be given the opportunity to be heard, and finally a decision will be made on whether or not the licensee contravened gambling laws by allowing Mr Kalidas to participate in gambling while his banning order was still effective.” He added that the GGB had taken similar action within the last year and that the licensee has recognised the banned gambler, removed him from the floor and pressed charges against him. Kalidas admits he

breached his own order but wants the money he played with returned. He told local press: “I lost control. I was completely addicted to gambling. I played with a lot of money and I lost just as much. I knew I wasn’t supposed to be there but I went anyway.” He continued: “At Montecasino I played with R40,000 [E2,740] from my credit card and then I won a jackpot. But they refused to pay me out, which was fair enough. I thought that they would at least pay me back the money I played with. It

has been two years and I have received nothing.” The operators have not said how they believe Kalidas managed to bypass the security measures they have in place nor why his credit card was not flagged. They have also not indicated whether they would pay back the money he gambled. Julie van Wyk, public relations manager at Emperors Palace, told press: “The investigation by Emperors Palace around Mr Kalidas’ claim has been completed and we are satis-

CR138-p18-19-Africa_Coinslot NEW 09/04/2014 09:57 Page 2

NAMIBIA / SOUTH AFRICA YXYXYXY SUPPLIER NEWS: JW@SJC.CO.UK

MARKETING Tsogo Sun’s Montecasino to the north of Johannesburg

Nambia spending big to attract tourists Uahekua Herunga

NAMIBIA

ast year saw Namibia collect approximately N$20m (E1.37m) by issuing new gambling and casino licences while the African nation hopes to amass even more funds from the sector in the future if it can introduce more effective monitoring and surveillance mechanisms. This revelation was made by Uahekua Herunga, environment and tourism minister for Namibia, and he also revealed that the local gambling and casino sector was being hindered by slow progress in ratifying the pending Gambling and Entertainment Control Bill. In a speech to the National Assembly in Windhoek backing his office’s N$725.36m (E49.99m) budget for the upcoming financial year, Herunga stated that the Namibia Tourism Board has been pursuing foreign visitors and spent about N$35m (E2.41m) in 2013 on a series of destination marketing

campaigns. While the majority of tourists to the nation came from Italy, Germany, South Africa, France and the UK last year, new efforts are to be made at increasing tourism from China, Russia, the United Arab Emirates, North America and other African states. As there are no direct flights between a number of these

nations and Namibia, Herunga declared that he will work with national carrier Air Namibia and other airlines in order to increase connectivity and airlift. “Therefore, there is a need for the Namibia Tourism Board and Air Namibia to work on joint destination promotion campaigns, which are currently being consid-

ered by the leadership of the two entities,” said Herunga. The Minister additionally highlighted major capital projects that have been completed over the past year including the N$41m (E2.82m) redevelopment of the Popa Falls Resort and the N$6.5m (E447,629) spent to enlarge the Tora Bay Resort.

DIVERSIFICATION

fines each fied that reasonable steps were taken to effect his selfexclusion. We therefore consider the matter closed.” For Tsogo Sun Priya Naidoo said: “We have received communication on the…incident and we are investigating this matter.” If found in breach, each casino could be fined up to R10m (E685,500) by the Gambling Board. According to the regulations, the principal responsibility for compliance with a self-exclusion order lies with the self-excluded person him or herself.

Sun International in negotiations to purchase stake in GPI Slots SOUTH AFRICA

South African resort and casino operator Sun International is hoping to grow its business by acquiring a meaningful stake in limited-payout machine market firm GPI Slots.

outh African resort and casino operator Sun International is in advanced negotiations to purchase a significant interest in local limited-payout machine firm GPI Slots Proprietary. A subsidiary of Grand Parade Investments, GPI Slots operates 5,000 machines spread over five venues in South Africa and recently declared interim second-half revenues of ZAR280m (E19.3m). Sun International is currently in the process of replacing its footprint of permanent international marketing and sales offices with a hybrid model targeting key markets and stated that it is keen to grow its business by focusing on new areas and products with the limited-payout machine market ‘performing well and finding increasing traction over time’. The Western Cape province had the largest limited-payout machine market in 2012 followed by KwaZulu-Natal and Gauteng with the units located primarily in bars, clubs and restaurants.

GPI Slots operates Grandslots in the Western Cape, Kingdomslots in KwaZuluNatal, Zimele Slots in Mpumalanga and Grand Gaming Slots and Hot Slots in Gauteng. Its proposed acquisition of KZN Slots in Kwa-Zulu Natal is expected to become official by the end of June subject to the meeting of certain conditions. “The limited-payout machine market is generally characterised by fragmentation and small participants, which makes meaningful acquisitions difficult,” said Sun International’s chief executive officer, Graeme Stephens. “An equity interest in GPI Slots would provide Sun International with an immediately meaningful presence in this industry including management and infrastructure rather than trying to grow from scratch. “GPI Slots is a business that has already established itself in key markets but still has room for growth including the potential in other markets in Africa and possibly Latin America.” April 2014 casinoreview

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News

North America

SURVEY

The Las Vegas Strip remains the biggest attraction for most visitors

Gambling visitor numbers to Las Vegas fall UNITED STATES

There is plenty to cheer Las Vegas casino operators in the most recent survey of visitors to the city - satisfaction levels are high and repeat business is strong - but some underlying trends are shifting, including the importance of gambling. he latest annual survey profiling visitors to Las Vegas has shown that fewer people are gambling during their visit than in previous years. The Las Vegas Visitor Profile study for 2013 published by the Las Vegas Convention and Visitors Authority (LVCVA) showed that 71 per cent of visitors gambled during their visit, down from 83 per cent in 2009 and 77 per cent in 2011. Half of those who did gamble did so for less than two hours, while 30 per cent played for three to four hours and another

20 | casinoreview April 2014

seven per cent for more than seven hours. From the survey, the average gambling budget of those who gambled was $529.57 (E384.07), up significantly from the $447.63 (E324.64) reported in 2011 when the question was last asked. However, the average individual gambling budget was rather more than the actual amount spent on gambling by visitors in 2013 from the LVCVAâ&#x20AC;&#x2122;s own figures: gross gaming revenue per head came in at $440.46 (E319.44) last year. Most visitors (88 per

cent) gambled on the Strip Corridor, while 27 per cent played, or also played, in the Downtown area. The traditional centres of gambling in the US have seen their share of national gambling revenues decline over recent years with many more casinos - often tribal - opening up around the country. The LVCVA wanted to gauge visitorsâ&#x20AC;&#x2122; own perception of the trend and asked the question: Now that there are more places to gamble outside of Las Vegas, do you feel you are more likely or less likely to visit Las

Vegas, or does it not make a difference in your decision to visit Las Vegas?â&#x20AC;? Twenty-four per cent said they were either somewhat or much more likely to visit Las Vegas, somewhat less than when the same question was asked in previous years: 39 per cent in 2009, 35 per cent in 2010 and 27 per cent in 2011. Just over three quarters said that having other places to gamble had no effect on their decision to visit Las Vegas, up significantly on previous years, with only one per cent saying it made future visits

less likely. One reason is that a great many visitors to Las Vegas had been before - 85 per cent - with 36 per cent of those visiting two or more times in the past year. Repeat visitors were most likely to be in the city on holiday or for pleasure, although at 37 per cent, that was down significantly from 43 per cent in 2012 and 47 per cent in 2009. However, 17 per cent of repeat visitors said they were in town to gamble, almost double the percentage reported in 2012. Just seven per cent came for a

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YXYXYXY CANADA / TRIBAL NATIONS / UNITED STATES Record year for Station 46

MARC FALCONE: “IT HAS BEEN ANOTHER DYNAMIC YEAR FOR STATION CASINOS...WE DELIVERED STRONG YEAR ON YEAR...AND LAUNCHED ONLINE GAMING IN NEVADA AND NEW JERSEY.”

NEWS NORTH AMERICA ROUND-UP

RACINO

ANALYSIS he number of visitors to Las Vegas every year remains strong despite competition from casinos now dotted around country: 2012 was a record year with 39.7m and 2013 was only a shade off that figure. Despite, the cost of visiting Las Vegas going up over the last five years, gaming and other revenues continue to rise. Clearly the city is doing something right. What Las Vegas offers above anything else is a breadth of entertainment offerings from gaming to shows, rides and attractions to sightseeing. It is the original integrated resort, and all the stronger for being made up of so many what we would now call integrated resorts. Competition between operators may be fierce, but together they are all benefiting.

Penn breaks ground on Plainridge Park Casino UNITED STATES

enn National Gaming has broken ground on the $225m (E163m) Plainridge Park Casino, located at the current site of Plainridge Racecourse, 30km south of Boston, Massachusetts. The group, which presently operates 26 gaming venues across the US, was awarded the Commonwealth of Massachusetts’ single slots-only gaming licence on February 28, 2014. Speaking at the groundbreaking ceremony on

March 17, Jay Snowden, chief operating officer of Penn, said: “We are elated to begin construction on our 27th property and look forward to opening Plainridge Park Casino a little over a year from now, thus bringing casino gaming to the Commonwealth of Massachusetts under the banner of the largest regional gaming company in the US. “Our team expects to work around the clock to achieve the same goals we met in each of our last six openings over the past five years - opening on time, with a big splash and with immediate benefits to the local

community.” Once completed, Plainridge Park Casino will include a fully integrated 106,000sq.ft racing and gaming facility featuring live harness racing and simulcasting with 1,250 slot machines, an upscale casual dining restaurant, the firstever Doug Flutie Sports Bar, four-venue food court, harness concourse bar, multipurpose banquet room, entertainment lounge and casino bar, 1,620 structured and surface parking spaces, 26,000sq.ft grandstand with box and reserved seats, and 13,000sq.ft clubhouse with box seats.

CONSTRUCTION

Construction starts on Calgary casino

convention, down compared to previous years. In 2013, visitors stayed an average of 3.3 nights and 4.3 days, similar to 2012. The percentage of visitors from the Western United States stood at 52 per cent down from previous years, however, visitors from California accounted for fully one third of all visitors to Las Vegas for the year, matching 2012. The percentage of foreign visitors - with no more breakdown than that was 20 per cent, a fiveyear high.

espite continued harsh weather, revenues from table games at the twelve casinos in the American state of Pennsylvania rose 3.25 percent year-on-year for February to $57.1m (E41.5m). According to a report from the Pennsylvania Gaming Control Board, the 200-table Sands Casino Resort Bethlehem was the state’s busiest casino with monthly revenues reaching $12.6m (E9.1m) while the industry as a whole paid $8.26m (E6.01m) in tax from table games for the 28-day period. But, combined revenues from slots and table games for the month fell by five per cent year-on-year to $238.32m (E173.28m) due to a 7.5 per cent drop in slot business. Further south, Full House Resorts has entered into a definitive agreement that will see it purchase Fitzgerald’s Casino in Tunica, Mississippi, from The Majestic Star Casino for $62m (E45m). Fitzgerald’s Casino has 38,000 square feet of gaming space with approximately 1,100 slot and video poker machines and 20 table games

CANADA

entury Casinos has started construction at the Century Downs Racetrack and Casino in Calgary. United Horsemen of Alberta and Century Casinos chose Chandos Construction as general contractor for the construction of the casino. Charles E. Coon and Sons has been signed as track

consultant. Set to open by the end of the year, Century Downs Racetrack and Casino will have 550 slot machines, with plans of up to 650 slot machines at a later stage, pending approval from the Alberta Gaming and Liquor Commission (AGLC). The casino site is located less than one mile north of the city limits of Calgary and 4.5 miles from the Calgary Interna-

tional Airport. It is ideally positioned off the Queen Elizabeth II Highway which is the main corridor between Calgary and Edmonton and one of the most heavily used highways in Western Canada and next to the CrossIron Mills shopping mall, a major regional attraction, and would capture both the north and the northwest Calgary markets, which do not currently have a casino.

on a 53-acre site. The property includes a 506room hotel with 68 suites, a restaurant, two bars and an 8,100 square foot multi-purpose event centre. The property draws heavily from the nearby Memphis area and benefits from the approximately 14m people that live within a 250 mile radius. The previous year saw the venue generate unaudited adjusted earnings before interest, tax, depreciation and amortisation of approximately $10.1m (E7.3m). Less than two miles away, Caesars Entertainment Corporation has announced that it intends to close its Tunica operation from June 2 due to persistent declines in business and increased competition. Caesars also runs the nearby Horseshoe Tunica, which is currently being upgraded, alongside the Tunica Roadhouse Hotel and Casino and revealed that it will now work with local officials in order to identify alternative uses for the soon-to-be shuttered facility. In other news from Caesars, the firm shut off all of the exterior and nonessential interior lighting at its four casinos in Atlantic City for an hour on March 29 to mark Earth Hour. The operator’s Caesars, Harrah’s, Bally’s and Showboat properties all participated in the annual event that was created in 2007 by the World Wildlife Fund as a way to publicise climate change. April 2014 casinoreview

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News

North America

Poles buck trend for Century 8

CENTURY CASINOS: “IT HAS BEEN QUITE CHALLENGING FOR CASINO OPERATORS IN MANY REGIONAL NORTH AMERICAN GAMING MARKETS AND WE WERE CERTAINLY NO EXCEPTION.”

ACQUISITION

TRIBAL GAMING

Tribal gaming sector hits record high UNITED STATES

New owner for Casino Miami Jai-Alai Mortgage brokerage ABC Funding has agreed to spend $155m in order to take control of the historic Florida Jai-Alai venue and casino. UNITED STATES

eating off stiff competition at a recent auction, American mortgage brokerage ABC Funding has agreed to pay $155m (E112.7m) in order to purchase the historic Casino Miami Jai-Alai. Owned by Florida Gaming Corporation, the venue was built in 1926 and once served as the centre of a thriving jai-alai scene that posted record attendances during the 1970s. However, the sport subsequently faltered leading to Casino Miami Jai-Alai being forced to deal with ever-increasing financial instability. After the state legalised casino gambling in 2011, Florida Gaming borrowed $87m (E63.2m) primarily from ABC Funding to expand Casino Miami Jai-Alai by adding a 60,000sq.ft casino offering 1,000 slot machines, a poker room and video blackjack. The extension, which also included a

22 | casinoreview April 2014

restaurant and concert facility, opened in January of 2012, but jai-alai continued to be a losing proposition despite the success of the gambling operation. Florida Gaming filed for Chapter 11 bankruptcy protection in August with ABC Funding subsequently beating bids from casino operators Mohegan Sun and Penn National Gaming in addition to private equity firm Z Capital in order to take control of the venue, which an investment bank recently valued as being worth $180m (E130.9m). The agreement, which must be approved by a federal judge, follows ABC Funding suing Florida Gaming for alleged non-payment of debts. “There was very spirited bidding by all parties,” said Luis Salazar, an attorney acting for Casino Miami Jai-Alai at the Coral Gables auction. According to recent financial statements, the slot machines at Casino Miami Jai-Alai deliver

$1.1m (E800,000) in cash every week while a top Florida Gaming executive testified in court that running jai-alai matches sees the operation post a net loss of about $1m (E727,000) a year. Silvermark, the New York-based group that had a ‘stalking horse’ agreement to buy Casino Miami JaiAlai for $129m (E93.8m), would be owed a $4m (E2.9m) ‘breakup’ fee if the bid from ABC Funding is approved. “Since last August, we have been working toward a positive resolution to this case that would benefit not only those involved but also the surrounding community,” said Salazar. In addition to jai-alai, the Casino Miami Jai-Alai has hosted everything from championship boxing matches to concerts by world-famous acts such as Aerosmith and Thin Lizzy. Its fronton has also had a starring role in television episodes of Miami Vice and Anthony Bourdain’s travel programme.

evenues from Indianrun casinos in the US hit a record 24-year high of $28.13bn (E20.46bn) for 2012, although a slower rate of growth could indicate the market is reaching over-saturation. According to Casino City’s annual Indian Gaming Industry Report, Native American gaming venues saw 2012 revenues rise by two percent year-onyear although this was lower than the previous 12 month’s 3.4 per cent improvement to total $27.59bn (E20.06bn). The biggest factor in the slower rate of growth was the sluggish American economy with California economist Alan Meister, the man who spends a year compiling the figures from 28 states, stating that this was the first time in 18 years that tribal casinos underperformed when compared with their commercial rivals: “It was the third straight year of positive growth, which is a movement in the right direction. But it reflected the slower growth of the economy.” Unlike commercial casinos in Nevada and other states, tribal venues are not required to publicly release their monthly gaming revenues

although Meister stated that aboriginal operations had traditionally recorded doubledigit revenue growth until 2007. The commercial casino industry in the United States posted around a four percent rise in revenues for 2012 while this trend was doubled by the nation’s race track casinos. “Gaming developed in additional jurisdictions such as Ohio while older markets added new facilities,” says Meister. There were 468 tribal US casinos in 2012, which represented one more than the previous year, operating 346,242 slot machines, a 1.6 per cent increase, and 7,768 table games, a decline of less than one per cent. The nation’s biggest tribal casino market, California, had 68 Indian casinos and collected $6.96bn (E5.06bn) in gaming revenues, which represented a boost of 0.8 per cent year-on-year. Oklahoma is the nation’s second largest market and collected $3.7bn (E2.69bn) in 2012, which was an increase of 6.6 per cent year-on-year, from 118 large and small casinos. These two states generated 38 per cent of Indian gaming revenues in 2012 and lead a top five that also includes Washington, Florida and Connecticut.

CR138-p22-23-SAmerica_Coinslot NEW 09/04/2014 09:59 Page 1

News

South America

LEGACY CASINOS

Casino Viña del Mar is one of the venues under threat

Chile’s seven city-owned casinos operating under old legislation are due to close in 20 months’ time. A last-ditch effort is underway to save them. Again.

CHILE

Chile’s casino mayors return to the fight

long fight by seven communities in Chile where legacy casinos operating under the old legislation are supposed to close at the end of 2015 has entered a new phase as their mayors start negotiations with the new government. The mayors from Arica, Iquique, Coquimbo, Viña del Mar, Pucón, Puerto Varas and Puerto Natales held a meeting with the new Secretary General of the Presidency Ximena Rincón at the presidential office at La Moneda less than two weeks after President Michelle Bachelet was sworn in for a second term of office. They are now trying to persuade the govern-

24 | casinoreview April 2014

ment to extend the current licences of the municipally owned casinos by 15 years from the end of this year. Mayor of Coquimbo, Cristian Galleguillos said: “We want these casinos to remain in the hands of the municipalities. We want to stop the implementation of a law that see these casinos end up in private hands and severely impact the revenues of the communities.” Rincón said: “I have listened to the mayors who want to maintain the current regulations for these casinos and…extend them because an important percentage of the resources they manage come from these areas. We are taking

note of what they have said and will study this issue, which is important to them. I will not comment on the measure taken by the previous government as this is now a matter for President Michelle Bachelet, and we will work on it.” The mayors have been in this position before with a

Bachelet government, and failed to come to an agreement. Their hopes of finally getting their way after negotiations with the government of former p r e s i d e n t Sebastián Piñera also came to nothing. They seem more confident this time. Virginia Reginato, mayor of Viña del Mar, who has led the campaign from the start, said: “ I President Michelle Bachelet started her second term in March

think that for the first time, they have actually listened to the mayors of these seven communities and heard that we will be faced with a disaster in our cities if we lose these casino licences and they are replaced with private operations. I am leaving with gratitude to the authorities for their willingness to consider out demands and believe that we will find a definitive solution to the problem to the benefit of our communities.” Under the 2005 Gambling Act, which introduced privately owned casinos into Chile along with extremely strict - and so far pretty effective - regulation by the

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YXYXYXY BELIZE / CHILE Carrasco sets bar high 2

ROBERT HELLER: “WE WANT TO CREATE AN ATTRACTIVE SPACE; WE WANT PEOPLE TO SEE, TO APPROACH, TO ENTER AND EXPERIENCE IT.”

ANALYSIS or almost all of the ten years of the legacy period under which the municipal casinos have been allowed to operate, the mayors have been fighting to change the law: now on the fourth government since the law was passed, they have had no success, despite similar positive noises. The implications for the cities involved are large, but they have had time in which to adjust. There is pressure on the government, not least from the existing, by and large, successful operators, that there should be a level regulatory playing field. There may be a route that would allow the casinos to be owned by the cities at arm’s length and regulated by the Superintendent of Casinos but it is unlikely that the status quo will continue.

PERFORMANCE

Enjoy reports record annual profit CHILE

atin American casino operator Enjoy has released its financial results for 2013, showing an eight per cent increase year-on-year in total revenues thanks to a 20 per cent rise in the number of visitors averaging 7,350 per day. Enjoy operates nine casinos with 5,718 slot machines and 265 gaming tables and revealed in a report to the Superintendence of Securities and Insurance that its annual profit hit a record $25m with higher income from every segment during the summer season. “In 2013, we achieved a significant consolidation with the purchase of Conrad where Enjoy saw a good business and investment opportunity that has resulted in us achieving a profit of around $25m,” said chief financial officer Ignacio De La Cuadra. “In addition, the company made changes

to its structure that has meant a significant cost reduction as well as savings.” Enjoy’s bottom line has been significantly helped by its purchase in May of a 45 per cent share in Baluma, which operates the Conrad Punta Del Este Resort and Casino in the Uruguayan seaside town of Punta Del Este. The Chilean firm financed the $139.5m (E101m) acquisition by selling a 4.5 per cent stake in its business to Caesars

Entertainment Corporation while it also has an option to purchase the remaining 55 per cent stake from its American counterpart after three years. Javier Martinez, chief executive officer of Enjoy, stated that the acquisition ended “a crucial phase” in the development of the company’s international business and it now intends to focus on optimising and enhancing its “outstanding investments in Chile and Argentina”.

NEWS LAT AM ROUND-UP he Hyatt Place Manati and Casino in Puerto Rica has officially opened its doors boasting a 104-room hotel and the 10,000sq.ft Casino Atlantico. Costing $38m (E25.5m) to complete, the development will employ 213 locals and is to be marketed towards the medical sector as the city of Manati is home to a pair of relatively large hospitals. This is the second Hyatt property to open on the island in the last year and follows December’s premiere of a similar development in Bayamon on the outskirts of San Juan. In Argentina, the Institute of Social Assistance has closed a trio of casinos and seized 50 machines after the venues were found not to have held the appropriate licenses. Two sites in the city of Formosa along with one in the town of Villafane were shut under Agency Provincial Law No. 1348 with officials stating that they are currently considering whether to

OPENING

Grand Belize Casino Hotel to open in Santa Elena Superintendent of Casinos, the seven municipal casinos had ten years’ operation under legacy conditions, after which time their licences would be put out to public tender. The involvement of the private sector and municipalities receiving only tax revenues would mean a substantial reduction for the city coffers, even more so in the first year, as the law states that the new licences can only be offered for tender once the old one has expired and even then there is not guarantee a licence would be granted. If no change in the law can be agreed, the mayors are asking for compensation of up to around US$1bn (E725m).

and 20 table games while the operator will also expand the venue by constructing a new 50-room hotel he Grand Belize Entertain- featuring over 20,000 square feet ment Group has been of events space in addition to mulgranted permission to take tiple food and beverage offerings. over the former Golden Princess Owing to its proximity to a numCasino in Santa Elena, Belize, and ber of ancient Mayan ruins and plans to re-open the venue as the extensive duty-free shopping, Grand Belize Casino Hotel. Santa Elena is a popular tourist The bricks-and-mortar site will destination with over one million feature around 500 slot machines annual visitors. BELIZE

The new Grand Belize Casino Hotel is to be co-branded with the operator’s GrandBelizeCasino.com domain and guests will be able to redeem rewards and promotions earned at online casino inside its bricks-and-mortar compatriot. “We are excited to step in and operate in this location. Although there are still plans for a larger casino resort, opening in this current location allows the Grand Belize brand to place a foothold in the market. We look forward to making a positive impact on the local community as well as Belize as a whole,” says Grand Belize Entertainment’s chief operating officer, Michael Glauser.

prosecute the owners. The Ministry of Economy and Finance in Panama has reported that gambling pumped about $80.1m (E58.2m) into the public coffers last year, which represented a year-on-year increase of $3.7m (E2.7m). According to a report from the nation’s Gambling Control Board, Type-A machines paid twelve percent more into the public purse in 2013 at $41.9m (E30.4m) while contributions from Type C games remained relatively static at $8.6m (E6.2m). Casinos in Panama paid $24.5m (E17.8m) in tax last year, which was $180,592 (E131,310) more than in 2012, while televised bingo and game shows generated five percent more in revenues for the state. FApril 2014 casinoreview

| 25

Venetian Macao 18-20 November 2014

By Asia

for the world

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CR138-p28-Comment_Coinslot NEW 09/04/2014 10:02 Page 1

Comment & Analysis

SUPPLIER NEWS: JW@SJC.CO.UK

MEDIA WATCH

UNITED KINGDOM

Changes are afoot in the United States as gambling laws relax and tighten in various parts of the country.

Gambling on the facts

V Poor quality research prevents necessary gambling industry reforms, a new study indicates. 28 | casinoreview April 2014

ital research needed to make reforms to the gambling industry is being hampered and blocked, according to a report published by Goldsmiths, University of London. The report found that research is currently dependent on the gambling industry for funding and access to data, and as a result produces conservative findings that prevent necessary reforms. The team of researchers from the university’s Department of Anthropology began working on their paper, Fair Game: Producing Gambling Research, three years ago to study emerging gambling phenomena. Professor Rebecca Cassidy, one of the lead researchers involved in producing Fair Game, said: “This research shows that the gambling industry, charities that are funded by contributions from the industry, and the government have too much influence over research. They control funding, prioritise banal questions, determine who can access crucial data, and set the terms of that access. “As a result, gambling research is not asking the right questions. Instead of placing the blame for so-called ‘problem gambling’ at the feet of the individual, they should instead focus on how the industry and the state benefit from certain policies. “Part of the problem is that what counts as ‘evidence’ is very narrowly defined as irrefutable proof that particular machines or games cause problem gambling. This definition makes many of the questions asked by policy makers impossible to answer, because they are too simplistic, because there are insufficient funds to support the projects that would allow them to be answered, or because the data required to answer

them is inaccessible.” Key findings from the report include the idea that ‘problem gambling’ is politically useful, as it focuses attention on individual gamblers, rather than relationships between the industry, the state, products and policies. “Gambling research is heavily dependent on industry support”, the report indicates. “Funding programs prioritise banal questions: researchers are not free to devise critical alternatives unless they wish to remain unfunded.” According to the researchers, there is a “lack of transparency” about the influence of industry on research and no professional code of conduct governing these relationships. Based on interviews with 109 stakeholders, including members of the industry, researchers, and policy makers from the UK, Hong Kong, Macau, south east Europe, North America and Australia, the research team produced a number of recommendations to improve the quality of gambling research. “Governments should stop presenting themselves as focused solely on consumer protection and admit that they are also invested in commercial gambling, as collectors of tax revenue and promoters of national industries,” the researchers stated. “Gambling research should use a variety of methodologies to focus on a wider range of social processes, including problem games, problem products, and problem policies. Gambling studies should have a professional code of ethics, research should be funded by a compulsory levy that is administered by research councils [and] access to information should be part of licensing and not based on ad hoc agreements between individuals.”

he New York Post has revealed plans to install slot machines in John F. Kennedy airport, a development made possible by a provision recently entered into the state budget. The post reports that the Senate amendment would, “allow VLTs at International Airport Departure Terminals located within a city of a million or more,” with the departures area of JFK earmarked for one of the first installations. As with all facets of the budget, the slot machine proposal requires approval before it passes into law, with New York state senator Joe Addabbo announcing that he would oppose the move. “Let’s not get crazy here,” he said. “We don’t need to put slot machines in every nook and cranny - even the airport.” Elsewhere, plans are being drawn up by the Treasury Department that will require casinos to vet the origins of their high rollers’ funds. According to Reuters, the move is designed to prevent criminals from ‘cleaning’ money obtained illegally. Although casinos are currently called upon to report suspicious activity, these new standards would force gambling venues to undertake a much more detailed investigation. A spokesman for the Treasury s Financial Crimes Enforcement Network, Steve Hudack, declined to comment on the rumours, but did confirm that the state, “continually examines its rules, and periodically considers updates, to ensure their continued effectiveness.” The move is seen by some as a reaction to recent legal cases, including an agreement between the U.S. Justice Department and Las Vegas Sands which saw the casino group paying $47 million to cover anti-money laundering charges. Meanwhile, the Las Vegas Review Journal is reporting on the passing on Vegas legend Jackie Gaughan at the age of 93. The casino magnate who pioneered the growth of the city’s Downtown region had continued to live in the area for the majority of his life. Before moving into hospice care for the final few days of his life, Gaughan had been living in an apartment at the summit of Downtown’s El Cortez hotel. Jackie’s son, Michael, is the owner of South Point on the south-strip paid tribute to his late father. “He may have been the most licensed person in the history of the state,” he said. “He had a great sense of humour. All his life, Jackie Gaughan believed in handshake deals and that a person’s word was his bond.”

INVITATION TO APPLY FOR A LARGE CASINO PREMISES LICENCE Southampton is the south coast’s regional capital and the third fastest growing city in the UK in terms of economic and population growth. With a population of 239,400 (Mid Year Estimate 2012) and a further 2.5 million people within an hour’s drive, Southampton lies at the very centre of the south coast’s communications network. It has one of the largest and most diverse Night Time Economies on the south coast. The city and the Port of Southampton is at the heart of the country’s cruise industry and enjoys a growing market with over 1.5 million cruise ship passengers passing through the port annually. The city is undergoing signiﬁcant regeneration, with a City Centre Masterplan aiming to bring 24,000 new jobs, 5,000 new homes and £3 billion of investment to the city by 2030. £800 million worth of developments are already underway or about to start in the city. As the last of the eight licensing authorities able to grant a large casino licence, the council is looking for innovative and enterprising applications from operators who can contribute to the ongoing signiﬁcant regeneration of the city. Southampton City Council as licensing authority proposes to issue one premises licence for a large casino within its area pursuant to Part 8 and Schedule 9 of the Gambling Act 2005 and The Gambling (Geographical Distribution of Large and Small Casino Premises Licences) Order 2008 (SI2008/1327) and hereby invites applications to be made for the said licence.

Stage 1 applications must be received by 1 July 2014. Late applications will not be accepted. For an application pack visit www.southampton.gov.uk/casino All other enquiries must be made in writing by email or post to: Email: casino@southampton.gov.uk or Licensing Team, Southampton and Eastleigh Licensing Partnership, PO Box 1767, Southampton, SO18 9LA.

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AINSWORTH GAME TECHNOLOGY / ARISTOCRAT TECHNO

News

NOVOMATIC INSTALLATIONS IN MACEDONIA LT GAME TERMINAL ARISTOCRAT’S SPANISH INSTALLATION

NEW OPENING

Novomatic celebrates Casino FlaminGo re-launch in Macedonia After purchasing the casino hotel complex venue close to the Macedonia Greece border last year, Novomatic has spent E25m to establish a world-class leisure and gaming destination.

fter acquiring the FlaminGo casino and hotel complex last autumn, Austrian gaming giant Novomatic has now re-launched the Macedonian venue as the Casino FlaminGo. Located in the south of the country directly opposite the border with Greece, Casino FlaminGo features a five-star hotel with 58 rooms as well as a restaurant, fitness centre, live events stage, nightclub and a selection of bars while its casino offers 440 slots, ten American

roulette tables and 16 additional tables with blackjack, Caribbean stud poker and Ultimate Texas hold‘em poker around-theclock. Novomatic spent E25m on renovating the venue and revealed that it also operates some 33 electronic casinos in the country with plans to open a further six within the next few months. The firm additionally declared that it has so far spent nearly E40m in Macedonia and employs over 1,000 people, which

makes it the nation’s second biggest investor from Austria. Despite the large outlay, Novomatic chief executive officer Franz Wohlfahrt stated that the company plans to spend even more in the near future: “We have already made significant investments in the Macedonian market as it is a strictly regulated gaming territory with an excellent business potential that is based on a sound legal framework. “The Macedonian live

casino market is currently limited to three large casino operations only, which cannot supply the great demand for sophisticated gaming entertainment. Therefore, we have projected additional investments amounting to E10m for the further expansion of Casino FlaminGo as well as Novomatic infrastructure in the country.” Novomatic marked the opening of Casino FlaminGo, which has staff fluent in Greek, Macedon-

PARTNERSHIP

Ainsworth and LT Game tie up terminal deal

insworth Game Technology have agreed a multi-year deal which provides the Australian manufacturer with exclusive distribution rights for LT Game’s Fully Automated Multi Game (FAMG) in New South Wales. The product enables players to wager on live table games, such as baccarat and roulette, from a single terminal. The FAMG can be linked to any type of

game and connected to an unlimited number of betting terminals. “On many visits to Macau we have seen the growth and success of LT Game in this market segment,” said Danny Gladstone, CEO of AGT. “They are now the market leader and have set the benchmark in both live and simulated multi terminal gaming. We believe this product will provide the New South Wales Club

30 | casinoreview April 2014

market with a proven alternative in multi game, multi terminal marketing.” Jay Chun, chairman and CEO of LT Game’s parent company, Paradise Entertainment, was equally pleased with the deal’s completion. “We are delighted to be able to make available our Fully Automated Multi Game system in New South Wales, Australia through the well regarded distribution channel of Ainsworth

Game Technology Limited,” he said. “With Ainsworth’s impeccable reputation and market presence, we see this as a huge opportunity for LT Game. Our Live Table Games are already making big in-roads into the Australian casino market and the relationship with AGT in New South Wales is a valuable means of expanding the product range and revenue stream for our group.”

ian and English, with a party it christened the New Casino FlaminGo Gala. Attended by a number of special guests and company representatives, the event also saw former Formula 1 racing driver Niki Lauda (pictured) make his first appearance as the firm’s brand ambassador. Owing to the three-time champion’s popularity in southern Europe, he received a warm welcome at the airport and even delayed his arrival in order to sign autographs.

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YXYXYXY CRAT TECHNOLOGY EUROPE / LT GAME / NOVOMATIC GROUP OF COMPANIES COMMENTS: JW@SJC.CO.UK

E TERMINAL SUPPLY GAMESTEC’S NEW CASINO DIVISION

EXPANSION

Gamestec creates casino sector service division Gamestec, a division of Astra Gaming Group, has launched a new casino services division for the UK market.

Gamestec managing director, Chris Butler

amestec, the UK’s largest operator of pay-to-play amusement and gaming machines, has announced the launch of a new division that will see the Astra Gaming Group division utilise its vast operational skills in the casino sector. Branded Gamestec Casino Services, the outfit will deliver a service and repair facility for casino operators, initially concentrating on slot machines but eventually covering a broad spectrum of games and equipment. Gamestec managing director Chris Butler believes that the move into the casino sector is a logical progression for the company, given the significant backing of parent Novomatic combined with its own operating

expertise. Summarising the rationale behind the launch, he stated: “It makes perfect sense for Gamestec, one of the largest service providers in the industry, to now apply the experience and proficiency it has gained in the coin-op market to the casino space. It is important to underline, also, that we are already accustomed to working with casino style equipment thanks to products like iPub which clearly demonstrate the growing convergence between coin-op and casino.” According to Butler, customers will be able to rely on a dedicated workforce comprising specialists with considerable experience of servicing and repairing casino equipment.

NEW PRODUCT

Aristocrat makes Spanish server debut ristocrat Technologies Europe has solidified its position in the Spanish market with the another installation of its TruServ SGB system at the El Dorado Independencia gaming salon. Operated by Dioper 2000, the venue opted to utilise the Aristocrat system on its new bank of casino-style Viridian terminals. As a result of the installation, each of the machines now has access to a multipack of six games, known as Player’s World Los Juegos Favoritos. The games are designed to appeal especially to the Spanish market and include titles such as King of the Nile and There’s the Gold. “Getting this product to market required a concerted effort from teams in Stockholm, London and Barcelona, as

well as close co-operation from Dioper,” said Aristocrat’s general manager EMEA, Pedro De Matos. “The switch-on went according to plan and integrated seamlessly, just as it did a few days later when we ran our first live remote demonstration of the system from our stand at the ICE show in London.” Raúl Rubio, vice-president of Dioper 2000 gave the system a glowing review. “Our customers have responded very encouragingly to this new form of multigame on the gaming floor,” he said, “and we are proud to have pioneered its introduction in Spain.”

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GAMING LABORATORIES EUROPE / GAMING PARTNERS INTERNATIONAL

News

SUPPLIER NEWS: JW@SJC.CO.UK

GLI’S PHILIPPINES PROGRAMME GPI UNVEIL CHIP SECURITY INNOVATION

TECHNICAL STANDARDS

GLI thanked for Philippines aid Kobetron joins GLI stable

GLI continues to make strides in Asia while its founders invest heavily in US test equipment provider, Kobetron.

aving already established itself as one of the major gaming test centres in many parts of the world, Gaming Laboratories International has made strides to grow its profile in Asia’s blossoming gaming market, based out of its new test lab in Macau. GLI’s most recent regional success has been to assist local regulators in the development of the Philippines Amusement and

Gaming Corporation (PAGCOR) Technical Standard for Electronic Gaming Machines. PAGCOR has expressed public appreciation for GLI’s involvement, ahead of the a launch event in front of the Philippine media. The development of these technical standards is viewed as a vital step in cementing PAGCOR as a strong regional regulator. “We are pleased to finally

have uniform technical standards that will ensure a high level of integrity of slot machines and other types of electronic gaming machines operating in the Philippines,” said Jorge Sarmiento, president and chief operating officer of PAGCOR. “This cooperative endeavour between PAGCOR and GLI reflects our desire for the Philippines to adhere to global best practices in all

aspects of gaming.” “We are honoured with the incredible trust the Philippines Amusement and Gaming Corporation has bestowed in GLI,” said vice president of global services Ian Hughes. “Since 1998, we have worked closely with PAGCOR on the establishment of this Technical Standard. GLI’s strong local presence has contributed tremendously to this effort.”

G LI’s founders, James Maida and Paul Magno, have acquired the assets of test equipment provider Kobetron. The company will continue to operate under its current name and will retain Greg Kobe as president. They will continue to operate as an independent company, focused of serving the gaming industry. ”This is a historically important strategic opportunity for Kobetron and for the customers we serve in the global gaming industry,” said Kobe. “With the infusion of capital, we will have a renewed intense focus on improvements in customer service globally and on new product development. This is a very exciting time for our company.” The influx of new cash provided by Maida and Magno will be used to enhance Kobetron’s product development, sales distribution and customer support services.

CHIP SECURITY

Continued innovation from GPI aming Partners International continues to invest a wide range of resources into researching and developing new security feature options for casino customers around the world. One of the Las Vegas-based company’s latest innovations is 4C-UV, an invisible chip security feature that makes counterfeiting chips much more difficult. 4C-UV is an invisible currency authentication tool that is revealed by a standard UV detector making it ideal for quick and easy identification by dealers right at the table. It offers customers the ability to incorporate a unique full colour image or pattern into a chip’s decal. Customers can choose between a custom image tures for maximum protection. or from one of two standard “Another very valuable addidesigns. 4C-UV can also be lay- tion to our currency offerings is ered with other chip security fea- that we now offer our LaserTrack

32 | casinoreview April 2014

are mixed with either printing inks or currency materials and are only revealed with the aid of an invisible laser beam sent by a special device. In addition, the ability to add LaserTrack to the edge inserts gives operators the ability to mass validate their J3 currency while in stacks or racks thus streamlining the validation process. “We have also developed a solution for customers who are concerned with the potential threat of internal theft,” Maciel added. “Our Chip Detection Solution uses the latest in RFID technology and provides an obtrusive solution to protect against unauthorised removal of gaming currency from the property by staff. It is a stand-alone solution that security feature in the lace décor Maciel, director of global market- helps detect RFID enabled curon all of our plaques and jetons as ing for GPI. rency concealed within an well as in the edge inserts of our “LaserTrack works with spe- employee’s purse, wallet, coat or new J3 jeton,” said Maricela cially developed laser inks that other personal item.”

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SLOTS

EXHIBITIONS

When the 16th edition of FADJA kicks off from the Corferias exhibition centre in Bogota on April 23, visitors will be able to see a broad selection of games and solutions from local Novomatic Group subsidiary, AGI Gaming Colombia. heFADJA show is billed as the largest of its kind in the Andean region and operators will be able to check out the new Novostar VIP casino slant-top cabinet from AGI Gaming Columbia complete with a Crown VIP chair featuring an integrated start button and sound system. “The Novostar VIP guarantees an impressive gaming experience in ergonomic style with its

Gamopolis gaining ground

AGI bringing it all to FADJA giant 46-inch upper screen positioned at the perfect ergonomic distance for supreme game play,” read a statement from AGI Gaming Columbia. “Visitors to the show will be fascinated by the great looks and ultimate comfort of this VIP configuration, which will be presented with a range of Novo Line Interactive multi-games.” Also being exhibited at the two-day show by AGI Gaming Columbia will be

the Novostar SL2 complete with a range of Coolfire II games in various PremiumV+ Gaminator mixes. These titles will also be publicised in a Novo SuperVision cabinet connected to the new Egypt-themed Kingdom of Ra Jackpot. FADJA will additionally see the Dominator from AGI Gaming Columbia complete with two independent jackpot installations alongside the Magic Joker Jackpot and the new

hybrid Jewels Factory Jackpot, which consists of mystery and community prize combinations. “Another highlight for the casinos of the region will be the Panther Roulette, the successor of the already extremely popular Pinball Roulette,” confirmed AGI Gaming Columbia. “It will be presented at FADJA in two versions: Panther Roulette and Panther Roulette II. The Pan-

ther Roulette comes with a new auto start button on the right-hand side of the hand rest for increased player comfort. The Panther Roulette II additionally features a second 32-inch full high-definition screen in a vertical position on top of the machine with flipscreen functionality. Both versions are available with a comprehensive multigame offering of 23 highdefinition video slot games.”

asino Technology continues its Latin American expansion at a rapid pace. As a result of the company’s established status, one of the largest Latin American operators, Codere has selected the multigame series Gamopolis Highway along with the Sensa Plus slot machine for the casino mix in its Colombian operations. Casino Technology’s products are now available in multiple gaming locations in Latin America. At the beginning of the year, a group of Sensa Plus slot machines with Gamopolis Highway multigame and Fusion Jackpot were installed in Enjoy Coquimbo Casino in Chile. And in Uruguay, installations of Tangra Touch slant top cabinets with Fusion multi-level Jackpot system took place in Atlantida Casino under the operation of Direccion General de Casinos.

COMMUNITY DEVELOPMENT

LT Game donates to Macau Polytechnic Institute T Game, the Macau-based developer of casino gaming products, has donated an LMG-5 live multigame machine and Power Slot to the Macao Polytechnic Institute. The machines will be used as part of the institute’s Bachelor of Science and Computer programme that specialises in gaming technology. Jay Chun, chairman of Paradise Entertainment and Betty Zhao, chief operating officer of LT Game, attended the donation ceremony, which was held at the Macau Polytechnic Institute on February 27, 2014.

34 | casinoreview April 2014

In doing so, students of that programme will learn software development in the gaming sector, develop the slot system incrementally and experimentally, along

with applying innovative features to the gaming machines at the recently-opened R&D laboratory. “This donation is not only for manufacturers, but also for stu-

Game said. “Also, it supports gaming research and cultivates both creative minds and practical skills of the students in this programme.” Established in 1991, the Macao Polytechnic Institute is a public institution of higher education with an emphasis on applied knowledge and skills. The institute’s motto is ‘knowledge, expertise and global vision’, and it strives to achieve international standards dents and people to learn about in teaching and learning, building the software development of a an ‘e-campus’, ensuring adminisgaming machine and how it under trative compliance with the law goes changes of the R&D in order and sound research to satisfy a customer needs,” LT management.

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AGI COLOMBIA / ALFASTREET / CASINO TECHNOLOGY / LT GAME SUPPLIER NEWS: JW@SJC.CO.UK

AGI SHOWING AT FADJA LT GAME LINK WITH MACAU POLY INSTITUTE CASINO TECHNOLOGY SIGNED UP BY CODERE ALFASTREET EXPANSION IN CENTRAL AMERICA

CARIBBEAN GAMING SHOW

Alfastreet takes its products to the Caribbean Celebrating its 20th anniversary this year, Alfastreet continues to expand across the worldâ&#x20AC;&#x2122;s high-growth gaming markets. fter enjoying a hugely successful ICE 2014, Slovenian gaming products developer Alfastreet took up stand space at this yearâ&#x20AC;&#x2122;s Caribbean Gaming Show and Summit, which took place in San Juan, Puerto Rico on March 19-20. The company saw the event as the ideal opportunity to meet new and existing customers from the Caribbean and Latin America - markets that have wel-

comed Alfastreetâ&#x20AC;&#x2122;s tradition in manufacturing gaming instruments. The companyâ&#x20AC;&#x2122;s presence in the region reached its highest level in 2013, and said it was excited to strengthen it further this year. â&#x20AC;&#x153;Numerous new installation and strong partnerships in all countries of Latin America have marked a successful beginning of this yearâ&#x20AC;&#x2122;s celebration of our 20th anniversary.â&#x20AC;? Alfastreet displayed its

full range of products at the Caribbean Gaming Show this year, including the acclaimed four-station electronic roulette, R4. This sleek, elegant product provides a pristine gaming experience for players, and its compact size has resulted in many orders and upcoming installations. â&#x20AC;&#x153;The Alfastreet brand has nurtured a bulletproof reputation over the years and is highly regarded by all professionals involved in

gaming all over the Latin American markets,â&#x20AC;? the company said. â&#x20AC;&#x153;We are determined to maintain and ennoble this reputation, keeping our machines the reference for technical innovation, support and impeccable quality. Client satisfaction is our highest priority.â&#x20AC;? Speaking in the wake of ICE 2015, Iztok Pockaj, general manager of Alfastreet, underlined his companyâ&#x20AC;&#x2122;s commitment to global trade

events. â&#x20AC;&#x153;We are already focusing our thoughts to many other exhibitions and events we are going to attend all over the world,â&#x20AC;? he said. â&#x20AC;&#x153;We are increasing our presence on global gaming markets and we are satisfied with all the extra

work we have due to the increasing popularity of our machines. Our plans for the future remain very ambitious yet realistic and we will make sure we maintain our position as one of the leading manufacturers of electronic table games.â&#x20AC;?

Exciting opportunity with Gamestec Leisure Limited â&#x20AC;&#x201C; WE ARE GROWING! Come and join us and be a part of the dynamic and forward thinking Company with a strong pedigree and a bright future! We are a part of the Novomatic group, a world leader in gaming solutions and operate over 230,000 gaming machines in more than 1500 operations. With a strong background of exceptional service to UK customers we are now developing our Casino business in the UK and looking to reinforce our team by recruiting nationwide for:

CASINO SERVICE TECHNICIANS Location: Nationwide (England, Scotland and Wales) The key responsibility of the Casino Service Technician will be to provide exceptional service to our new casino customer base within a designated region. As the dedicated Casino Service Technician you will be responsible for installation, repairing and servicing a wide range of products in the casinos. You will also be involved in carrying out KDUGZDUH DQG VRIWZDUH PRGLÂżFDWLRQV XSJUDGHV RQ H[LVWLQJ VLWHG HTXLSPHQW <RX ZLOO KDYH PDQDJHPHQW DQG FRQWURO RI VSDUH SDUWV IRU SURGXFW UHSDLU DQG XSJUDGH The role of Casino Service Technician will be vital to our new business venture, building long term business relationship with customers and endeavouring for continuous improvements in the processes and services we offer. As an integrated part of the Casino Service division, this role will include scheduled preventative maintenance, call out responses and working evenings and weekends on a roster basis. 7R IXOÂżO WKH NH\ UHVSRQVLELOLWLHV DV &DVLQR 6HUYLFH 7HFKQLFLDQ ZH DUH ORRNLQJ IRU VRPHRQH ZLWK Â&#x2021; ([SHULHQFH LQ HOHFWULFDO HOHFWURQLF VHUYLFLQJ LQ WHFKQLFDO PDLQWHQDQFH VHUYLFH VXSSRUW Â&#x2021; ([SHULHQFH RI QHWZRUNV DQG VHUYHU LQVWDOODWLRQ DQG PDLQWHQDQFH ZLOO EH DGYDQWDJHRXV Â&#x2021; 3UHYLRXV H[SHULHQFH RI ZRUNLQJ ZLWKLQ WKH FDVLQR VHFWRU LV GHVLUDEOH EXW QRW HVVHQWLDO Â&#x2021; )XOO YDOLG 8. GULYLQJ OLFHQFH Â&#x2021; ([FHOOHQW LQWHUSHUVRQDO DQG FRPPXQLFDWLRQ VNLOOV Â&#x2021; 3URYHQ RUJDQLVDWLRQDO VNLOOV DQG EH VHOI PRWLYDWHG ZRUNLQJ XQGHU RZQ LQLWLDWLYH In return for your energy, enthusiasm and ability we offer: D D D D

&RPSHWLWLYH VDODU\ &RPSDQ\ FDU WKDW PD\ EH XVHG IRU SULYDWH SXUSRVH 3HQVLRQ /LIH $VVXUDQFH 2WKHU EHQHÂżWV DVVRFLDWHG ZLWK ODUJH 8. EXVLQHVVHV If you have experience in casino business as Software Developer, Hardware Engineer, Casino Machine Maintenance Engineerâ&#x20AC;Śâ&#x20AC;Ś.. â&#x20AC;Ś..then we would also like to hear from you. We are growing and will have other opportunities in our Casino service division! Join our team & become a part of our success journey!

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ADVANSYS / CRANE PAYMENTS INNOVATIONS / IGT

News

SUPPLIER NEWS: JW@SJC.CO.UK

ADVANSYS ADVANCE WITH EUROPEAN INSTALLATIONS CRANE ACQUISITION OF MEI INCREASES OFFER IGT’S WHEEL OF FORTUNE MOVES ONLINE

INSTALLATIONS

LICENSING

Advansys takes its solutions to high-growth markets

IGT to bring US shows online

O Following a hugely successful ICE show in London, Advansys hit the ground running in 2014, with numerous key installations in Eastern Europe and beyond. dvansys, the Sloveniabased manufacturer of online casino management systems, reported a successful 2013 in terms of product development, sales revenue, penetration of new markets in Africa and Asia and increased market share in some of the most important existing markets in Central and South Eastern Europe, the Mediterranean and the Caribbean. At ICE Totally Gaming 2014, the company debuted its new casino management system, Nexio, to delegates from around the world. Following 24 months of intensive development, Nexio represents more than an improved version of Advansys’ previous casino management system, FloorScanner, as it has been developed entirely from scratch, with a completely new system architecture, running on cutting edge HW and web plat-

form. Nexio Player Tracking and Cashless Hardware on the slots side have now 4.3-inch TFT Capacitive Touchscreens, allowing bi-directional communication with players. Nexio offers easy and fast system use and navigation with an advanced and intuitive Graphic User Interface (GUI) delivering an ultimate user experience across the whole application. From simple tasks to complex analytics, the user can immediately recognise a whole new level of software allowing faster, wider and deeper view of all CMS data, virtually everywhere. At the end of 2013, Advansys successfully installed Nexio in St Martin, one of the most beautiful Caribbean Islands. Installed modules are Accounting and Cage, Ticketing, Jackpot and Player Tracking on 120 slot machines in

the Diamond Casino in Philipsburg. Advansys reports a successful 2013 in terms of development, sales revenue, penetration on new markets in Africa and Asia and increased market shares on most important existing markets in Central and South East Europe, Mediterranean and Caribbean. In other company news, the group recently installed its Ticketing system in all 20 locations of Hrvatska Lutrija, the Croatian state lottery. “We upgraded our slot management system installed in their casinos with ticket-in, ticket-out functionality on more then 800 slot machines,” Advansys said. Elsewhere, the Slovenian group signed an agreement with Casinos Poland for the upgrade of the Player Tracking system for all of the operator’s seven locations,

and the installation of this module on almost 400 slot machines already connected to the Accounting and Ticketing module. Advansys said: “The Player Tracking system will connect all of Casinos Poland’s casinos with Multisite Player Tracking. This multisite system configuration will bring numerous advantages to Casinos Poland, enabling comprehensive player analytics of their visits to all casinos, playing habits and their real spend. “More, it will help retain players, build loyalty and award them according to real spend. In addition, it will bring advantage to players as well. With an unique membership card which can be used in any casino, player will be able collect the loyalty points by play at any machine and any location on a single account.”

CRANE PAYMENT INNOVATIONS

CPI launch means more convenience for OEMs and operators rane Payment Innovations (CPI), the global cash management group born from Crane Company’s 2013 acquisition of MEI, now offers one of the most comprehensive portfolios of solutions for the gaming industry. “OEMs and operators now have newfound convenience in finding solutions that will impact their bottom line,” the company said. “The acquisition signifies the potential Crane sees in its ability to add value to applications that rely upon cash transac-

36 | casinoreview April 2014

tions. The goal is to set a new standard - driving transaction, asset and maintenance efficiencies into customers’ operations by exceeding both expressed and latent needs.” The CPI portfolio offers everything from coin changers and bill acceptors to recycling products, asset management software and more. A small sampling includes the v2 Eagle Coin Acceptor, Compact Hopper, SC Advance Note Acceptor, Easitrax Soft Count and the SCR Note Recycler. “It will take time to consolidate

the organisation,” said James Boje, vice president of MEI’s gaming and retail division in the EMEA region, earlier this year. “Our goal is to make that process seamless to our customers. The combined knowledge of CPI allows us to offer customers the personnel, experience and products to find solutions that impact the bottom line.”

ne of the world’s most popular slot machine brands, Wheel of Fortune, is to make the leap into online gaming thanks to a new agreement between IGT and Sony Pictures Consumer Products. Popular US TV quiz, Wheel of Fortune has been the subject of countless gaming machines, with over 200 having been produced during the show’s 39 years of history. Wheel of Fortune has been the top syndicated game show in the United States since its inception and has acquired six Emmy Awards, the last of which was a Daytime Emmy in 2011 for Outstanding Game/Audience Participation Show. As part of the company’s new deal, IGT are now permitted to offer a digital realmoney Wheel of Fortune game on their mobile and online platform, DoubleDown Casino, until 2024. IGT has also been given the all clear to develop games based on the Jeopardy! brand, including slot machines and for-wager online play. The debut of these games on the DoubleDown Casino will mark the first time that Jeopardy! has been available at an online social casino in the U.S. Both American shows are part of IGT’s MegaJackpots wide area progressive, which consistently pays out prizes ranging from $1 million to $39 million.

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

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SOFTSWISS

AMAYA GAMING GROUP

Looking forward to the future with SoftSwiss

Revenues up for Amaya

Following a successful ICE 2014, the future is looking bright for turnkey online gaming solutions group, SoftSwiss. oftware development and management firm SoftSwiss was established in 2008 when a small group of programmers and designers began working on custom web and Flash-based design and software projects for clients in Europe and the US. After implementing several client projects, the company, led by Ivan Montik, moved into developing its own innovations beginning with an online gaming auction platform before premiering its very own internet casino solution in London at ICE Totally Gaming 2013. The company now also offers stand-alone and turnkey white label solutions for starting an online casino, and is in the process of expanding still further with the development of a mobile version of its platform and games. “For operators who have little experience in online gaming, we offer a one-stop service for quickly and efficiently starting a business from scratch,” says Montik, who now serves as the company’s CEO. “This white label solution means that SoftSwiss provides a complete

infrastructure and takes care of the technical, legal and financial side of an online casino operation. In addition, we can also offer a standalone software solution and consult on obtaining a gaming licence as well as building a fully functional independent working infrastructure.” SoftSwiss’ turnkey casino solution leads clients through the whole cycle of opening and operating an online casino from building a website to promotion while the package also includes a comprehensive market consulting feature. “Our product is quite new and that’s an advantage in terms of the technology,” said Montik. “We use the most advanced programming language and the latest achievements in terms of design and security to deliver top-notch games and guarantee perfect performance.” SoftSwiss’ Bitcoin Casino Solution integrated with the Bitcoin payment processing system was recognised as a unique market proposition at ICE Totally Gaming 2014 and the firm actively promotes the use of the private digital money for online gaming.

“The interest in Bitcoin began two years ago when the currency was just invented and Satoshi Dice became popular,” said Montik. “Our owners thoroughly followed the development and growth of the crypto-currency and were looking for the right moment to implement it into one of our projects. When the SoftSwiss online casino platform was first introduced in February of 2013 at ICE Totally Gaming, we started getting numerous requests from potential clients asking whether our software could work with Bitcoin. It was a technical challenge and at the same time a perfect business opportunity as we strongly believed in the future of Bitcoin. “So we put together all our knowledge and skills and came up with a Bitcoin Casino Solution supported by our unique anti-fraud system. We also adapted our platform and games to make them Bitcoincompliant. We have quite a number of clients who operate a Bitcoinonly casino and we have observed a huge rise in interest.” SoftSwiss is now looking forward to the future and revealed that

it is currently in the process of porting every one of its games into the HTML5 mark-up language in order to make them fully cross-platform and compliant. There are also plans to premiere a virtual horseracing solution while finishing integration with a number of game and payment providers. “We are also constantly working on expanding our platform functionality,” said Montik. “In terms of new casino set up, we are preparing for the launch of an online gaming website for one of the hugest landbased casino networks in the world.”

PRIZES

Bally awards progressive prizes aming machine developer and manufacturer Bally Technologies recently handed out two progressive cash jackpots together worth well over $4.4m (E3.2m) courtesy of a pair of its popular casino slots. The first windfall in

excess of $1.64m (E1.19m) was rewarded to an anonymous player at the Thunder Valley Casino Resort near Sacramento, California, on the afternoon of February 19 after she enjoyed the one-cent denomination 1,000,000 Degrees game Triple Blazing 7s Wild

38 | casinoreview April 2014

Jackpot. Offered by various aboriginal casinos in California, Florida, Mississippi, Nevada, and New Jersey, the Millionaire Sevens wide-area progressive series features an initial award of $1m (E727,143) that steadily increases as

more games are played. Only four days later, a woman in the Tampa area went one better by hitting the Jackpot Empire progressive video slot jackpot for more than $2.81m (E2.04m) while enjoying an early-hours one-cent denomination game at the

Seminole Hard Rock Hotel and Casino. The life-changing cash prize represents the thirdlargest ever awarded to a Seminole player while the Florida venue’s record of $3.64m (E2.64m) was also hit on a game from Las Vegas-based Bally.

n the back of completing its purchase of casino and lottery products designer and manufacturer Diamond Game Enterprises for C$225m (E147.8m), Amaya Gaming Group has released its financial results for 2013. Montreal-based Amaya reported total revenues for the 12-month period of C$154.52m (E101.5m), which represented a swell of over 102

per cent year-on-year. This increase was due to the Canadian firm having a full year of earnings from its purchases of new CryptoLogic, Ongame Network and Cadillac Jack, and came primarily from North America, Europe, Latin America and the Caribbean. “The corporation’s revenues were slightly below guidance primarily due to the decline in our hosted casino revenues from WagerLogic, which we sold subsequent to year-end,” said David Baazov, president and CEO of Amaya. “Adjusted earnings before interest, tax, depreciation and amortisation from our current business, excluding assets and liabilities held for sale, were in line with our expectations.” “We’re pleased with the development of our business in 2013, specifically the growth of our land-based gaming solutions, the launch of our interactive gaming solutions into the emerging US market and the bolstering of our lottery solutions through the acquisition of Diamond Game.”

CR138-p32-38-Supplier_Coinslot NEW 09/04/2014 10:10 Page 8

YXYXYXY AMAYA GAMING GROUP / BALLY TECHNOLOGIES / GAMING STANDARDS ASSOCIATION / SOFTSWISS / SUZO-HAPP SUPPLIER NEWS: JW@SJC.CO.UK

SOFTSWISS PUSH WHITE LABEL FOCUS BALLY DELIVER PRIZES PRIZES PRIZES AMAYA UNVEIL REVENUE RISE GSA DRIVES ONLINE TESTS FORWARD SUZO-HAPP LOOK TO IRELAND

ONLINE GAMING STANDARDS

GSA pushes ahead with online gaming standards

he Gaming Standards Association (GSA) has announced that its Online Gaming Committee is making “rapid progress” in establishing a universal set of criteria for the industry, with the body set to hold its next meeting in London from April 9-10 hosted by Playtech. The international trade association’s protocol director, Ethan Tower, stated that the new standards would provide support for third-party gaming interfaces and “external interfaces including geolocation and payment processors”, in addition to

central monitoring for regulators. Valery Gelfman, technical consultant for Playtech and chair of the Online Gaming Committee, stated that introducing a set of common standards will benefit all constituencies in the industry and help create value: “A successful online gaming operation requires multiple integrations with third-parties including external content providers, monitoring authorities and, in many cases, bricks-and-

mortar operations. Playtech is pleased to work with the GSA and help drive the effort towards establishing integration standards based on best practices.” The GSA works with gaming manufacturers, suppliers, operators and regulators around the world to identify, define, develop and promote interoperability standards for the benefit of the entire industry. Its members include Bally Technologies, International Game Technology and Sci-

entific Games alongside Konami Gaming, Aristocrat Technologies and Ainsworth Game Technology. “The GSA is moving forward quickly with the creation of standards to support the online gaming industry,” said GSA president Peter DeRaedt. “This is not the time for suppliers or operators to sit on the sidelines. We encourage all interested parties to jump in with both feet to ensure that their voices and opinions are heard as these important standards are being created and finalised.”

SUZO-HAPP

Suzo-Happ brings Interactive Pro Table to Ireland

aming, amusement and vending parts manufacturer and distributor Suzo-Happ Group attended the Irish Gaming Show and Conference in Dublin last month to present the new Interactive Pro Table. With a 42-inch screen, the Interactive Pro Table features multi-touch capability while its screen can be split into sections, making an ideal four-player, two-player or single-player interactive product. Suzo-Happ stated that its latest innovation is ideal for use as a games terminal, television, information source or Internet terminal while being designed to withstand ‘harsh environments’ including pubs, clubs and leisure centres. Harald Wagemaker, EMEA sales and marketing executive vice president at

Suzo-Happ, joined colleagues from the United States, UK and The Netherlands at Morans Red Cow Conference Centre over March 4-5 to underline the company’s Solutions Focused, Technology Driven motto while additionally showcasing many of its other products. “Being the gaming market’s global number one supplier of spare parts and components, naturally we exhibit at many shows,” says Wagemaker. “However, we understand just how important country-specific shows are and are proud to be an active part of these. The positive impact of the Interactive Pro Table now from Ireland makes us very excited as this echoes the response from ICE Totally Gaming.”

sales@hk1180.com

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April 2014 casinoreview

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CR138-p40-B2BListings_Coinslot NEW 09/04/2014 10:16 Page 1

Listings

BUSINESS AWARDS / EVENTS / SECURITY / SLOTS

Business2Business SUPPLIER NEWS: JW@SJC.CO.UK

EVENTS

VNE leadsthe way at Enada

LISTINGS

Always looking to keep one step ahead in the change machine market, VNE continues to help shape the change machine sector.

nada provided VNE with the perfect setting to drive forward its claims of quality, flexibility, service and online support. And the Rimini outing did just that: according to the firm,their stand at last month’s Enada show in Italywas busy from the offset, as company representatives demonstrated. All VNE change machines can be connected to the internet to make full use of the company’s online customer support. The team took the opportunity to display major components from Merkur Gaming, MEI, Suzo-Happ, Money Controls, NRI and JCM - each of whom had staff present on the VNE stand to give first hand information to customers. Lorenzo Verona, commercial director at VNE, said: “Gaming is part of the entertainment industry. So we used the ENADA to entertain our customers on our stand. But our message was loud and clear - VNE is the number one for change machines in Italy as we focus on innovation, quality, security and service. It is our strong intention to remain one step ahead in the market.”

BUSINESS AWARDS EGT recognised as a True Leader

uro Games Technology (EGT) of Bulgaria has been presented with the True Leader award by consultancy ICAP, based on its performance in a number of categories. EGT was also included in the second edition of the authority’s 300 Business Leaders In Bulgaria publication due to being one of the nation’s most profitable companies based on earnings before interest, tax, depreciation and amortisation while additionally increasing its workforce. “We are proud to be in this list and will try our best to keep a steady position there,” said Vladimir Dokov, managing director of EGT. “I believe that our customer-oriented policies and our persistence in delivering products of the highest quality have brought us here. We shall carry on providing the best services for our current and future customers.”

SECURITY Dallmeier introduces EdgeStorage

etwork-based video surveillance solutions provider Dallmeier Electronic has

40 | casinoreview April 2014

premiered its EdgeStorage product featuring the SmartBackfill emergency recording facility. The German manufacturer revealed that its SmartBackfill solution guarantees loss-free recording even in the case of a network failure through the use of RAM internal storage technology. This innovation will stand in during any periods when a network is unavailable due to failure, overloading or maintenance without losing any data.

$5 Wheel of Fortune Double Diamonds, when the most-loved slot machine of alltime sounded, signalling a big jackpot win. IGT launched the MegaJackpots progressive product line in 1986 and has since produced thousands of winners with jackpots ranging from $1m to the world-record slot jackpot of more than $39m (E28.4m).

EVENTS Gaming giants to exhibit at MGS 2014

S SLOTS IGT slots continue millionaire-making legacy

miles were abundant at Seminole Hard Rock Hotel & Casino in Tampa, Florida, last month, when a lucky player hit a lifechanging $1.3m (E945,000) jackpot on IGT’s legendary MegaJackpots slot machine, Wheel of Fortune. The fortunate player, who wished to remain anonymous, was casually playing

everal leading global gaming giants have already booked stand space at this year’s Macao Gaming Show (MGS). Exhibitors at the 2014 edition include Aristocrat (Macau) Pty Ltd, BMM International, Dolphin Products Ltd, Global Cash Access, IGT Asia Macau Lda, JCM Global and LT Game. MGS 2014 takes place at the Venetian Macau on November 18-20.

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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…)

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20.4%

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46.6%

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2,004 11.9%

Readership breakdown by job title

2.9% B

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Land based casino

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Slot halls/Street gaming

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PRINT 4,061

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When the Government of the Autonomous Republic of Ajara wanted to launch it’s gambling tourism vision for the Black Sea resort of Batumi, it immediately turned to Casino Review appointing it as the exclusive media partner. The integrated above and below the line campaign run only through Casino Review exceeded expectations and resulted in 120 investors from 25 countries traveling to Batumi The EXCLUSIVE European media partner for the Association of Gamto do business. ing Equipment Manufacturers (AGEM) and the Official Publication of If you want more information on how International Casino Review the European Casino Association (ECA), the magazine is also used can work with you to help achieve your commercial objectives simby Reed Exhibitions to promote G2E Las Vegas and G2E Macau; ply contact Publisher John Sullivan at jsullivan@gbmedia.eu Monografie S.A to promote SAGSE Buenos Aires and by Clarion Events in support of its flagship London event, ICE Totally Gaming and EiG, Barcelona. With such an extensive, worldwide distribution coupled with award winning production and content it’s no surprise that International Casino Review is the preferred media partner for so many leading industry associations, b2b events and commercial organisations throughout the world.

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CIRCULATION BREAKDOWN DIGITAL 12,783

CR138-p44-46-Business_Coinslot NEW 09/04/2014 10:20 Page 1

Business

ACQUISITION / FINANCIAL FORECAST / PATENTS

& City News

BUSINESS NEWS: JW@SJC.CO.UK

CASINOS AUSTRIA

GLI

Casinos Austria looks ahead to positive 2014

With its largescale restructuring effort now essentially complete, Casinos Austria is expected to post a marked improvement in its operating result for the 2013 business year.

ollowing an extensive effort, the Casinos Austria International (CAI) management team has succeeded in moving the company’s farreaching restructuring and reorganisation process a major step forward. According to the group, the turnaround has now essentially been achieved, and while turnover remained at approximately the same level as in 2012, CAI is expected to post a “marked improvement” in its operating result for the 2013 business year. Although final figures for the year are not yet available, CAI said the restructuring activities at Spielbanken Niedersachsen (SNG) in Germany have been concluded, with SNG’s operations - which include the flagship RP5 casino in the heart of Hanover - now posting initial signs of profitability. Likewise, the

Casinos Austria CFO, Christoph ZuruckerBurda, and CEO Alexander Tucek

GLI receives patent for Link

G expansive Viage entertainment casino in Brussels, Belgium, is now also well on the way to a return to the black. In another development, Casino Sopron in Hungary was relocated to new, larger premises in November 2013 to accommodate the significant increase in demand following the Hungarian government’s 2012 ban on slot machines outside licensed casinos. Strengthened by these and other restructuring measures, CAI recently began to look once again at new projects. However, as the management team confirmed, their focus is now on projects that do not require a major investment. “Our core strength lies in casino management, not in the construction of casino buildings or restaurants,” said CEO Alexander Tucek. This clear position has already produced a number of alliances. CAI

is currently looking at around a dozen new casino and VLT projects, including some very concrete undertakings. This includes Vietnam, with options for casino and lottery activities; Canada where a number of casino projects are up for privatisation; and Macedonia, where CAI recently won the international VLT and online gaming tender. CAI will realise this project in co-operation with the Macedonian state lottery company. “By contrast, the withdrawal of the licences in Argentina was a serious blow,” the company stated. “However, when initial legal appeals failed to reverse the decision, CAI initiated immediate legal proceedings to recover losses. The actual extent of any such loss has yet to be finally determined. CAI will continue its efforts to negotiate with the Argentinean authorities to bring the matter to a satisfactory conclusion.”

aming Laboratories International (GLI) has received a patent for its awardwinning GLI Link technology. The proprietary technology brings interoperability testing to a new global scale, connecting manufacturers’ products and operators’ systems online, and expands interoperability testing to every GLI lab. With GLI Link, interoperability testing can performed on any game with virtually any system from any GLI lab in any time zone, saving time, saving money and speeding time to market.

GPI

GPI to acquire GemGroup asino table games equipment manufacturer and distributor Gaming Partners International Corporation (GPI) has signed a binding letter of intent to acquire the assets of GemGroup and its subsidiaries via an all-cash transaction. GemGroup is a private manufacturer of casino currency, cards and table layouts marketed primarily under the Gemaco

Gregory Gronau

44 | casinoreview April 2014

brand with the transaction expected to close on or before the end of June. “We are very pleased to acquire the Gemaco brand of products along with their manufacturing expertise,” said Gregory Gronau, president and chief executive officer of GPI. “We look forward to partnering with them to strengthen and expand our casino offerings. This acquisition strengthens our card manufacturing

capabilities and increases our US market share in both playing cards and table layouts, two important sources of recurring revenue. “Further, it expands our product offerings in the growing Asia-Pacific region as Gemaco has a strong market presence in the layout business there. Consolidated revenues for Gaming Partners International have the potential to grow by

over 30 percent as a result of the acquisition.” Kaye Summers, president and chief executive officer for GemGroup, confiemed: “This transaction will be mutually beneficial for our customers and employees given both companies strong brand recognition in casino products. Moreover, Gaming Partners International has committed to continue operations in the greater Kansas City area.”

“This is an incredible milestone for our company,” said GLI vice president of global services, Ian Hughes (pictured). “No other test lab creates tools for their clients, and we are proud to have created a series of exclusive tools for both our regulatory and supplier clients. Now to have received a patent for one of our creations is very exciting and reinforces our message that GLI is so much more than just testing,”

Exceptional investment opportunity to purchase casino and/or hotel

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How? Apply in conﬁdence for a prospectus and further information to jsullivan@gbmedia.com

CR138-p44-46-Business_Coinslot NEW 09/04/2014 10:21 Page 2

Business

APPOINTMENTS / FINANCIALS / MANAGEMENT / TRADE ASSOCIATIONS

& City News

Konami drive systems forward 48

MICHAEL RATNER: “AT THE END OF THE DAY, WE BELIEVE IN OUR PRODUCTS AND OUR VALUES, AND THESE MESSAGES HAVE HELPED US GROW TO WHERE WE ARE TODAY.”

CIRSA

STATION CASINOS

Record year for Station Casinos

Impairment losses and provisions mainly related to its operations in Spain have impacted Cirsa’s fullyear balance sheet.

Cirsa posts mixed annual results panish casino and leisure centre operator Cirsa Gaming Corporation has released its financial results for 2013, with annual operating revenues increasing slightly year-onyear to E1.584bn. Cirsa revealed that net operating revenues for the 12-month period improved by almost one per cent yearon-year to E1.362bn, with adjusted earnings before interest, tax, depreciation and amortisation rising by five pe cent to hit E338.1m. For the final three months of 2013, Cirsa recorded a 0.9 per cent drop yearon-year in net operating revenues to E347.52m while earnings before interest, tax, depreciation and amortisation grew by 4.7 per cent E85.86m. However, the company recorded E20.9m in impairment losses and provisions mainly related to its operations in Spain during the final four months of 2013 and saw its annual profit before tax fall by 55 per cent year-on-year to 29.48m while net profit was in the red to the tune of E13.13m. Cirsa’s adjusted

BRIEFS

APPOINTMENTS Rank appoints new CEO

he Rank Group has confirmed that Henry Birch will succeed Ian Burke as chief executive of the UK gaming giant, with effect from May 6. Birch, 45, is currently a non-executive director of the AIM-listed CFD trading platform operator, Plus 500. He has more than 20 years of experi-

46 | casinoreview April 2014

net profit for 2012 had been E169,000 but this time around it recorded E22.86m. All of this has left the firm with total annual net debt of E908.5m, which is an increase of some E30m, while it holds E33.5m less in cash at E58.4m. Its available revolving credit facility stands at E31m and its net debt to earnings ratio rose by 0.1 percent over the course of 2013 to three percent. “In Spain and Italy, together with the ongoing implementation of efficiency programmes, we plan to continue with our strategy of highly selective acquisitions and the discontinuation of underperforming machines to increase the quality of our slot operations portfolio,” read a statement from Cirsa. Cirsa operates 112 casinos spread across Spain, Peru, Columbia, Argentina, Panama and the Dominican Republic offering some 22,456 slots and 577 tables. Despite a 24.9 percent depreciation in the Argentinean peso during 2013, earnings before interest, tax, depreciation and amortisation from these venues grew by

13.2 percent year-on-year to E225.77m due to the successful implementation of efficiencies and the installation of additional slot machines. These, combined with the expansion of the firm’s operations in Panama and Colombia, pushed its earnings margin up by 487 basis points to 39.5 percent while operating revenues rose by almost three percent year-on-year to E581.371m with net operating revenues similarly improving to E577.91m. “Our focus remains on the enhancement of our current casino operations,” read the statement from Cirsa. “As in 2012 and 2013, our investment plan will be directed to upgrading our existing slot machines product mix and to expanding the entertainment and gaming offer in our best performing halls with a focus on Colombia, Panama and Peru. Growth opportunities are expected to be pursued in... increasing the number of slot machines, expanding the size of existing locations and developing new halls in strategic geographic locations.”

ence in the betting and gaming sector and most recently held the position of chief executive officer at William Hill Online. Burke, who is currently also executive chairman of Rank, will become non-executive chairman.

Eisele, from Bally Technologies, also secured another term, as did WMS Gaming’s Mark Pace in the role of treasurer. Among those new to the board are GTech’s Rachel Barber.

MANAGEMENT GSA elects board of directors

he Gaming Standards Association has announced the election of its 2014 Board of Directors. The results included a number of familiar faces, chief among them IGTs Adrian Marcu, who was re-elected to the position of Chairman. Vice chair Walt

TRADE ASSOCIATIONS AGEM boosts its ranks

he Association of Gaming Equipment Manufacturers (AGEM) has approved the membership applications of A-Game Marketing of Las Vegas; Fantini Research; Win Systems and Grand Vision Gaming. The new intake raises total membership to an all-time high of 138 companies and organisation.

merican landbased casino operator Station Casinos has released its financial results for 2013 showing a five-year high in annual net revenues and adjusted earnings before interest, tax, depreciation, amortisation and management fees. Las Vegas-based Station Casino revealed net revenues for the twelve months to the end of December rose by 2.6 percent year-onyear to $1.3bn (E942.4m) while adjusted earnings before interest, tax, depreciation, amortisation and management fees increased to the tune of eleven percent to $385.4m (E279.3m). The operator stated that the full-year margin for its adjusted earnings before interest, tax, depreciation, amortisation and management fees rose some 230 basis points to 30.6 percent while same-store Las Vegas adjusted earnings swelled 6.2 percent off of a margin of 30 percent. “It has been another dynamic year for Station Casinos,” said Marc Falcone, executive vice-president, chief financial officer and treasurer for Station Casinos. “We delivered strong year-on-year financial results, opened Northern California’s premier casino resort, Graton Resort and Casino, and launched online gaming in both Nevada and New Jersey.”

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