CR142-p01_Coinslot NEW 13/08/2014 17:33 Page 1
AUGUST 2014 • EDITION 142
TWITTER/@ICASINOREVIEW • WWW.CASINOREVIEW-ONLINE.COM
News World
RUSSIA CASHES IN ON THE OLYMPIC DREAM AS SOCHI JOINS THE GAMBLING ZONES 2
Macao Gaming Show
DEREGULATION: The Netherlands plans a change to gambling’s legislative landscape
Setting its sights on excellence 47 EUROPEAN NEWS 8
THE BUSINESS NEWSPAPER FOR THE GLOBAL CASINO INDUSTRY
PROJECT DETAILS
CASINO RESORT
T
Requests roll in for BCN World casino licences Plans surrounding the development of BCN World, a major E4.5bn leisure development in Spain, are gathering pace, as developers announce they have admitted four of the five requests to participate in the tender to operate casinos at the mega-resort.
T SPAIN
he Government of Cataluña, Spain, has admitted four of the five requests to participate in the tender to install and operate casinos at the planned BCN World development in the port city of Tarragona, 80km south of Barcelona. Plans for BCN World - formerly known as Barcelona World - were unveiled in 2012. Utilising the existing infrastructure of the iconic PortAventura theme park, the planned E4.5bn ‘macro-complex’ 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. Some industry observers had expressed doubt that the ambitious project would come to fruition, particularly in the wake of Las Vegas Sands’ announcement that it had scrapped plans to
build its own multi-million dollar ‘EuroVegas’ project near Madrid in December 2013. Despite the detractors, however, the Government of Cataluña has named the list of potential casino suitors: the Catalan Casino Peralada Group; Melco Crown; BCN IR3, a joint-venture between Veremonte the project promoter and Hard Rock International; and BCN IR2, a joint-venture between Veremonte and Melco Crown. “The second phase of the tender will begin when the resolution of the four proposals is published, and will end with the awarding of up to four casino licences - one for each of the proposals accepted,” said Christian Tirabassi, senior partner at Ficom Leisure. “Once the government’s resolution is published, the second phase of the tender will begin.” Xavier Adserà, chairman of BCN World, said the development
has been designed as a “meeting point between East and West and between the Americas and Asia”. The project will create around 30,000 jobs, and tax rates for casinos in the mega-resort will be cut from 55 per cent to 10 per cent. While there are still numerous questions surrounding the viability of the project and its impact on the local area, Albert Batet, a representative of the Catalan nationalist coalition (CiU), assured that “the fears, the doubts and the questions” that BCN World elicits are the same that were generated by the legislation that permitted the construction of the Port Aventura theme park 25 years ago. “If we had voted that way in 1989, Port Aventura would not have been built, which is a model of success,” he stated.
he Government of Cataluña launched its tender for casino licences at BCN World two months ago. It includes the possibility of up to six casino licences in the Province of Tarragona, specifically in the towns of Vila-Seca and Salou. The requirements stipulated that potential licensees must have technical expertise and previous experience in the management and operation of casinos over the past five years. Companies were required to provide evidence of having the financial resources for a minimum initial investment of E300m for each casino resort. Catalonia has 7.5m inhabitants and attracts over 14m visitors from around the world. “BCN World is a meeting point where cultures merge,” the group behind the project stated. “It will bring together visitors and international companies thanks to the facilities where they may hold their conventions and conferences and develop their activities; a place for art and business where we focus on innovation based on new technologies. There will also be areas for family entertainment, hotels, shopping centres, theatres, parks, golf, beaches and much more. It will become a landmark of entertainment in Europe.”
w w w. j c m g l o b a l . c om
CR142-p02-04-World_Coinslot NEW 13/08/2014 14:23 Page 1
News World
One area back under Russian control, another desperate to make the most of the vast amounts of investment in Olympic facilities: President Putin has bowed to pressure to name both the Crimea and Sochi as new gambling zones.
GAMBLING ZONES
Crimea and Sochi win the right to host casinos RUSSIAN FEDERATION
R
ussian president Vladimir Putin has signed a law establishing a fifth gambling zone along the Crimean Riviera and extending the Krasnodar gaming zone to include Sochi, the site of the Winter Olympics earlier this year. In a statement on the official web portal for legal information issued on July 23, the Kremlin said that the Crimean authorities would determine the border of the new gambling zone. The leaders of Crimea, which controversially seceded from Ukraine earlier this year in order to join the Russian Federation, have already said they will either allow gambling across the peninsula or concentrate it on the south coast near Yalta, where most of the resorts are located.
2 | casinoreview August 2014
The Krasnodar gambling zone, a small area that is actually just over the border in the neighbouring Rostov region on the Azov Sea, will be extended to included Sochi, which is 550km south on the Black Sea - it will effectively be a sixth gambling zone in all but name. The government has said it will determine the boundaries of the Sochi zone, but it will be near the Olympic Village - built at huge cost and finished just in time. Russia banned gambling in 2009 under the presidency of Dmitri Medvedev, except for greenfield zones in the far-flung corners of the country. Lacking even basic infrastructure, even five years later there are very few casinos actually operating: two in temporary structures in Azov City. The Primorye zone north of Vladivostok, with its proximity to Asian
markets, is doing a lot better having secured serious international investment. Although relatively peaceful at the moment, Crimea remains hotly disputed territory, so international investors will remain extremely wary about committing any funds to developments there, especially those with licences in highly regulated markets. However, there are plenty of investors with funds to burn who are Russian or sympathise with Russian interests and there may well be enough there to allow new venues to be built. There is likely to be a market: with its subtropical climate, Crimea has a particular cachet with Russian holidaymakers, who have been going since long before the Communist era. Putin has changed his mind on whether to allow casinos in Sochi.
At a meeting with officials in February he said: “We agreed to a have a gambling area on the border between the Rostov region and Krasnodar Territory, 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 was concerned specifically that casinos would deter families. However, Putin was under pressure from investors in Sochi worried about what would happen after the Olympics and their strong views have apparently influenced his division. After all the money spent on it, and with good transport links, Sochi could well have a headstart in becoming a successful gambling zone.
CR142-p02-04-World_Coinslot NEW 13/08/2014 14:24 Page 2
YXYXYXY NORTHERN MARIANAS ISLANDS / RUSSIAN FEDERATION / SOUTH KOREA / UNITED STATES
ICR NEWS: WORLD 1-5 EUROPE 6-9 ASIA & OCEANIA 10-15 AFRICA & MIDDLE EAST 16-17 NORTH AMERICA 18-21 SOUTH & CENTRAL AMERICA 22-23 COMMENT & ANALYSIS 26-27
The casino district will be near the former Olympic Village in Sochi
RESORT CASINO
Crown Resorts returns to Las Vegas Australian operator Crown Resorts has partnered with private equity firm Oaktree Capital Management to buy 34.6 acres of land for new casino resort.
ANALYSIS utin and his political allies find casinos distasteful: the potential for criminality seems to weigh most on their minds. So it will have been with reluctance that the Russian president has agreed to allow these two extra gambling zones. Crimea was almost a given - the Russian naval base cannot support the whole economy and tourism is pretty much the only other option. The men who delivered Crimea to Russia are convinced that casinos will help attract more and boost the public coffers. The pressure exerted by investors in Sochi must have been immense for the president to go back on statements he has made publicly not so long ago. Making anything of Olympic sites after the games have gone is notoriously difficult. These were not cheap games to put on and those who put up the money were clearly not going to put off.
P
James Packer
UNITED STATES
ustralian casino operator Crown Resorts Limited is taking another run at the American market after announcing plans to build a new resort casino on the Las Vegas Strip as early as 2018 with construction expected to begin in the latter part of next year. Melbourne-based Crown Resorts has established a joint venture in partnership with Andrew Pascal, former president and COO of Wynn Las Vegas, and private equity firm Oaktree Capital Management and spent $280m (E209.5m) for a 34.6 acre vacant lot that was once the site of the New Frontier Hotel and Casino. The chairman of Crown Resorts and 50 percent shareholder, James Packer, stated that the new project brings together ‘great local partner in Andrew, a leading financial investor in Oaktree and the perfect piece of property’. “You can't be in the gaming industry and not have a special reverence for Las Vegas; that's where it all began,” said 46year-old Packer, whose last foray into the American casino market in 2008 ended in disaster when the Fontainebleau Las Vegas went into bankruptcy costing Crown Resorts upwards of $40m (E30m). “We've always kept our eye on Las
A
Andrew Pascal
Vegas [and] we now have the ideal opportunity.” The site for the new development was previously owned by a group of Israeli businessmen whose plan to build an $8bn (E5.9bn) resort modeled after New York's Plaza Hotel was ruined by the global economic crisis of 2007. It is also adjacent to land where Genting plans to construct a $4bn (E2.9bn) casino after taking over Boyd Gaming’s Echelon project. “For over 25 years, I’ve studied the ever shifting Las Vegas landscape,”
said Pascal, who will serve as co chairman alongside Packer and CEO of the new joint venture. “I’ve always been inspired by this city’s capacity for reinvention. I’m excited to have my hand in crafting something new and fresh for the resurgent Las Vegas market.” Packer is the son of the late media mogul Kerry Packer and is ranked as Australia’s third richest person with an individual fortune of around $6.6bn (E4.9bn). He earned approximately $1bn (E748.5m) last year after cashing out of his family’s publishing and broadcasting assets in order to concentrate on his gambling interests. This empire, which already includes casinos in Perth and Melbourne alongside operator Aspers in the UK, is set to grow even further with multi-billion dollar projects already underway in Manila, Sydney and Macau. Crown Resorts is additionally building a casino resort in Sri Lanka and is a partner via Melco Crown Entertainment in plans to construct a venue in Japan should the government liberalise casino gambling. “As we have built Crown Resorts into a thriving international company with successful casino ventures in Australia, Macau and London, we’ve always kept our eye on Las Vegas,” said Packer.
INTEGRATED CASINO RESORT
Saipan casino: where the Sun shines best
NORTHERN MARIANAS ISLANDS
ollowing months of controversy, Best Sunshine International Limited has won the right to develop a minimum $2bn (E1.4bn) integrated casino resort on Saipan in the Northern Marianas Islands. A subsidiary of Hong Kong-listed Imperial Pacific International Holdings Limited, Best Sunshine received unanimous approval from the US island territory’s Lottery Commission although this remains conditional upon clarifications of the casino development agreement. Best Sunshine, which was required to pay a $1m (E720,000) non-refundable licensing fee before depositing $30m (E21.5m) in escrow in advance of its application being considered,
F
will now meet with Lottery Commission officials to agree the final terms and conditions. Before being awarded the licence, the company stated that it wanted to construct a multi-phase casino resort with 2,000 rooms spread over four luxury hotels offering ‘both private gam-
ing rooms and public facilities’. The process of awarding the territory’s sole licence, which should have been completed by June 20, was delayed after rival bidder Mariana Stars Entertainment, in which Hong Kong firm Mega Stars Overseas holds a 25 percent stake, requested and received a temporary restraining order pending the resolution of a lawsuit it had brought against Best Sunshine. As previously reported by International Casino Review, Mariana Stars sued Best Sunshine over claims that it had ‘illegally’ provided benefits to at least four local lawmakers in exchange for their support. Despite agreeing in principle with the plaintiff, Superior Court Judge David Wiseman lifted the restraining order in earlyJuly citing public interest. August 2014 casinoreview
| 3
CR142-p02-04-World_Coinslot NEW 13/08/2014 16:31 Page 3
News World
Macao Gaming Show 46
MAGAU GAMING SHOW: “THE SLOT EXPERIENCE CENTER WAS AN IDEA CREATED BY THE MACAO GAMING SHOW TO HELP ELECTRONIC GAMING MACHINE MANUFACTURERS RECEIVE IMPORTANT FEEDBACK FROM SLOT PLAYERS.” CASINO RESORT
CLOSURE
Atlantic City’s Trump Plaza facing closure
Planned Paradise City casino resort to target Chinese high-rollers SOUTH KOREA
T
he biggest casino operator in South Korea, Paradise Company Limited, has partnered with Japanese firm Sega Sammy Holdings Incorporated in hopes of building a new $967.4m (E722.5m) resort near the nation’s main international airport. The pair’s new joint venture is expected to begin construction on the Paradise City project
adjacent to Inchon International Airport in October with the first phase of the development set to include hotel, shopping, entertainment and convention facilities along with a foreigner-only casino featuring 120 gaming tables, 400 slot machines and 300 electronic gaming tables. Scheduled to open in early-2017 as the Asian country’s first integrated casino resort, Paradise City will target the growing Chinese tourist mar-
ket and is to be near a similar project in the works from America’s Caesars Entertainment Corporation in partnership with Lippo Limited of Hong Kong. “There will be more rich people in China and they will need to travel,” said Choi Jong-Hwan, CEO of Paradise Sega Sammy Company. The boss of the new joint venture called the rising number of visitors to South Korea from mainland China a ‘mega-
trend’ and revealed that Paradise City is to rely on junket operators to bring in up to 30 percent of business, which compares to around five percent at other venues operated by Seoulbased Paradise Company. The number of Chinese tourists visiting South Korea grew by almost 53 percent last year although total casino revenues from the nation’s 17 casinos amounted to only $2.5bn (E1.8bn), which
represented less than six percent of the amount seen in Macau. Choi stated that new casino resort is to emphasise its ‘Korean-ness’ by featuring K-pop music and local foods while he does not expect the conservative government to lift the current prohibition on locals gambling any time soon. “Korea is a hot place right now [and] the main content that we will be showing to the Chinese VIPs will be Korean culture,” said Choi.
MERGERS & ACQUISITIONS
Scientific Games to acquire Bally Technologies Scientific Games is set to acquire Bally Technologies in a transaction valued at $5.1bn. More evidence of a consolidation in the supply and manufacturing sectors of the industry; or confirmation of a more aggressive strategy to capitalise on the economic recovery? Either way, it’s creating a pretty huge player in a gaming industry playground that’s getting somewhat overcrowded by the big boys.
UNITED STATES
cientific Games Corporation and Bally Technologies have entered into a definitive merger agreement whereby Scientific Games has agreed to acquire all of the outstanding Bally common stock. The aggregate transaction value is approximately $5.1bn (E3.8bn), including the refinancing of circa $1.8bn (E1.3) of existing Bally net debt. The acquisition will expand Scientific Games’ portfolio of products and solutions to include leading casino management systems and table products, including automatic shufflers, proprietary table games and electronic table systems. It would also expand the range of Scientific Games’ social and realmoney iGaming and iLottery products and services. Scientific Games expects to achieve
S
4 | casinoreview August 2014
the anticipated $220m (E164m) of cost synergies and $25m (E19m) of capital expenditure savings by consolidating operations and generating efficiencies in the areas of manufacturing, engineering, field and customer service and administrative operations. “The acquisition of Bally provides us with a unique opportunity to combine two exceptional companies with long track records of creating leading-edge games and gaming technology products for players and delivering innovative solutions to our customers,” said Gavin Isaacs, Scientific Games’ president and chief executive officer. “With leading gaming, lottery, and interactive content, worldclass systems capabilities and table game offerings, we believe that the
combined company will be uniquely positioned as a strategic partner for gaming and lottery operators, offering a highly diversified suite of value-enhancing products and services across multiple worldwide distribution channels and platforms. “The combined company will feature world-class research and development capabilities, an expanded base of recurring revenues and greater worldwide penetration in key geographies, including the Australasia region,” Isaacs added. “In addition to the strategic value of the transaction to our customers, we expect to create significant shareholder value as the transaction is expected to deliver immediate earnings and cash flow accretion and will allow us to meaningfully reduce our leverage over the next three to four years.” Upon closing of the transaction, Isaacs will continue as president and chief executive officer of Scientific Games, and it is anticipated that Richard Haddrill, chief executive of Bally, and David Robbins, chairman of the company, will join the board of directors of Scientific Games, with Haddrill anticipated to serve as vice chairman
UNITED STATES
s plans are floated to construct a new $4.6bn (E3.4bn) casino and motorsports facility in northern New Jersey directly across from Manhattan, the story further south is not so good as the 30year-old Trump Plaza Hotel and Casino in Atlantic City could be about to see its last summer. Suffering from increased competition, lower visitor numbers and the costs of repairing damage caused by a series of recent storms, Trump Entertainment Resorts revealed that it expects to shutter the venue in mid-September with the loss of some 1,153 jobs. American entrepreneur Donald Trump, who founded Trump Entertainment Resorts over 30 years ago and served as its chairman until resigning in 2009, no longer controls the company and holds only a ten percent stake. Although no official decision has yet been made, the Atlantic City-based operator told the Associated Press news service that it expects to close the casino from September 16 and is actively seeking alternative uses for the property. Built at a cost of $210m ($155.9m) in 1984, Trump Plaza won less than $73m (E54.2m) from gamblers last year, which saw it rank last among the seaside resort’s twelve casinos, while 2014’s results are so far 27 percent less year-on-year at only $21m (E15.5m).
A
YOUR WORLD OF INNOVATIONS NOVOMATIC Global Attractions 2014
www.novomatic.com
NOVO LINE™ Interactive multi-games enable you to cover the preferences of all your guests. Group & arrange, activate & deactivate, choosing from the best.
SLOT PRODUCTS
N O V O M AT I C
– W I N N I N G
T E C H N O L O G Y
International Sales: Jens Halle, Phone: +43 2252 606 234, sales@novomatic.com
CR142-p06-08-Europe_Coinslot NEW 13/08/2014 14:40 Page 1
News Europe
CASINO LICENCE
Casinos Austria challenge Vienna licence decision
Concerned that a highly contentious revocation of its licence in Argentina was used to mark down its bids for additional licences in its domestic market, Casinos Austria wants the government to look again at Vienna.
T AUSTRIA
he revocation of its licence in Argentina not only upset Casinos Austria’s 2013 balance sheet but also saw marks taken away from its licence applications for Vienna and Lower Austria, according Austria’s Der Standard newspaper. As a result, Casinos Austria has challenged the Ministry of Finance’s decision not to award it any of the three extra casino licences it legislated for in 2011 and is taking a case to the Supreme Court to try and overturn the award of the licence to the Palais Schwarzenberg Swiss-German joint venture between Stadtcasino Baden and the Gauselmann Group.
6 | casinoreview August 2014
Although deemed a controversial decision in Austria, the Ministry of Finance’s reasons for not selecting Casinos Austria include the matter of 20 official licence violation notices issued to CAI’s subsidiary Enjasa by the regulator in Argentina’s Salta province before the concession was revoked in August 2013. The alleged offences include the failure to note down in a book a number of cheques issued to those with winnings over 10,000 pesos (around E1,200). These incidents, which took place over the course of eight years resulted in fines then, shockingly, cancellation of the 30-
year licence. The regulator in Salta accused Enjasa of failing to respect the rules and regulations concerning money laundering. Casinos Austria has vigorously defended itself. The company is still undertaking legal action in Argentina and wanted to take the matter before the World Bank’s international arbitration tribunal, ICSID, however Argentina has said it will withdraw from ICSID because of the large number of complaints being brought against it by international investors who claim to have been manoeuvred out of their interests in the country. Casinos Austria spokesman Martin Himmel-
bauer said: “The events [in Argentina] are still not transparent or comprehensible to us… No regulatory obligation has been violated. There is nothing to blame our management for.” He called it a “cold expropriation”. The decision by the Austrian finance ministry to factor in the revocation of the Salta licence has upset Casinos Austria, which believes it unfair given that, according to Himmelbauer, “there is no mention of far more serious events at competitors’ operations”. Despite the best efforts of operators, sometimes errors occur and there is rarely any
suggestion of purposeful malfeasance: most are sins of omission not sins of commission. Undoubtedly, the argument will rumble over into issues involving the winning candidates, not least Novomatic Group which won two of the three licences. The Group recently settled a longrunning legal dispute with the Italian authorities over tax, which was resolved with a E47.5m bill. The question as to whether this was also a consideration will likely be thrown into the arena, further evidence that the battle for a casino licence in Austria could be set for another round of fierce fighting.
CR142-p06-08-Europe_Coinslot NEW 13/08/2014 14:43 Page 2
AUSTRIA / CYPRUS / NETHERLANDS / SWEDEN / UNITED YXYXYXY KINGDOM Martin Himmelbauer
CHALLENGING TIMES: “THE EVENTS [IN ARGENTINA] ARE STILL NOT TRANSPARENT OR COMPREHENSIBLE TO US… NO REGULATORY OBLIGATION HAS BEEN VIOLATED. THERE IS NOTHING TO BLAME OUR MANAGEMENT FOR.”
RESORT CASINO
Cyprus unveils casino resort plans
nges n
Sun, sea and casinos is a leisure combo that grabs the imagination of the international holidaymaker. So where better than Cyprus, albeit scarred and embattled over the years, but still a jewel in the Mediterranean, to drive this vision. CYPRUS
I The award of a licence for a casino in Palais Schwarzenberg is being challenged by Casinos Austria
ANALYSIS asino operators must work by the strictest of standards if they are to have any credibility in international markets. Regulators - as the guardians and guarantors of integrity - must operate to even higher standards, free of influence from anywhere except the law. While they may feel aggrieved that the Argentinean controversy affected their bids in Austria, the ministry of finance’s decision, in the end, will be strongly defended. The Austrian government was obliged to open the bidding across Europe, so it is fitting finally to break up the monopoly. Novomatic (a major international operator in its own right) will have two chances to prove itself at home and the Palais Schwarzenberg is an extremely appealing project. A second Vienna licence is a prize worth having, however, and if the ministry has not been even handed in how it has considered the application, for purely commercial reasons it makes sense for Casinos Austria to have another go.
C
n Cyprus, the government of President Nicos Anastasiades has unveiled plans that could see the island nation issue its first casino resort licence within the next year despite protests from religious and civic leaders. State lawyers are currently fine-tuning proposals initially approved last year in cabinet that would authorise one successful bidder to build and operate a large casino resort in the south of the island near the city of Limassol alongside up to four smaller gambling establishments. Designed as a way to attract foreign investment following the collapse of the nation’s once thriving financial services industry, the casino licence would be valid for 30 years and feature a 15-year exclusivity clause. In exchange, the winning bidder would be responsible for satisfying all costs associated
with constructing and running the venue while additionally paying a 15 percent gross income tax. According to the Mediterranean holiday island’s Energy, Commerce, Industry and Tourism Ministry, a licence fee should also guarantee the state at least $3.3m (E2.5m) in extra income for the first four years and $6.6m (E5m) over the subsequent 48 months. After this, the legislation would allow the National Gaming Authority regulator to change the duty structure every four years in order to ‘support its operating costs’. “Procedures are going ahead fast and the government’s aim is to select and licence the
operator of the integrated resort casino in less than a year,” said government spokesman Nicos Christodoulides. “This will be one of the most important infrastructure projects in Cyprus in coming years.” As it stands now, the proposed legislation, which could be put up for a vote before the end of the year, would permit the winning bidder to select a specific site for the resort casino and offer around-theclock gaming. Customers would be able to smoke and drink while enjoying games at no less than 100 tables with the venue set to also feature approximately 1,000 electronic gaming machines.
EUROPE ROUND-UP n Greece, the state-run OPAP monopoly has welcomed a ruling from the nation’s Gaming Oversight and Control Commission that establishes the regulatory framework for the operation and control of games of chance on video lottery terminals (VLT). The lottery and sportsbetting operator recently announced plans to launch a network of some 35,000 VLT machines under a ten-year licence that are to be connected to a central system utilising the Intelligen innovation from developer GTech Canada. Central and Eastern European online sportsbetting operator Fortuna Entertainment Group has signed a three-year shirt sponsorship deal with topflight Czech Republic foot-
I
ball club Slavia Prague. Under the terms of the agreement, the firm, which provides fixed-odds betting services in the Czech Republic, will have its logo emblazoned on the front of the team’s tops (pictured) until the end of the 201617 campaign. “We believe in Slavia’s potential [and] we want to help it get back into the upper part of the league table,” said Zdenek Lang, marketing director of Fortuna Entertainment. The Ministry of Finance and Government in Spain has officially approved regulations for the control of online slots and exchange betting following the end of a extensive public consultation by the Direccion General de Ordenacion del Juego (DGOJ) regulator. However, the Ministry estimated that it could take up to six months for operators to begin offering online slots and exchange betting to players in Spain. August 2014 casinoreview
| 7
CR142-p06-08-Europe_Coinslot NEW 13/08/2014 14:44 Page 3
News Europe
Olympic Entertainment 40
OLYMPIC MOVEMENT: LATVIA WAS OLYMPIC ENTERTAINMENT’S LARGEST MARKET OVER THE FIRST SIX MONTHS OF 2014 WITH ITS $28.8M (E21.6M) IN TOTAL SALES.
REGULATION
PERFORMANCE
The Netherlands to deregulate gambling market
Gaming action hurts Svenska Spel profits
NETHERLANDS
A shake-up will see
Holland Casino lose its strict monopoly while online gambling is to be legalised for the first time. Time, it seems, to show some Dutch courage.
T
he Netherlands has decided to end its gaming monopoly and sell off the licences currently held by its staterun Holland Casino business while additionally increasing the number of casinos in the nation by two to 16. Currently experiencing financial troubles due to declining visitor numbers with last year’s overall turnover dropping by 6.75 percent year-on-year to E373m, Holland Casino will see ten of its 14 licences offloaded under their current names as a bloc from next year while the remaining four are to be put up for sale individu-
ally. The Cabinet of Prime Minister Mark Rutte also intends to open the casino market to new providers from 2017 with two additional licences to be put up for tender and up to seven different operators permitted. According to junior justice minister Fred Teeven, any new licensees will be required to maintain the same strict problem gambling policies as Holland Casino while additionally paying a 20 percent revenue tax, which is nine percent less than Holland Casino is currently being charged. Licensed operators will also be subject to
a 0.5 percent turnover duty for the provision of anti-addiction programmes alongside a 1.5 percent tax to fund the Kansspelautoriteit regulator. In addition, the lottery market is to be opened up to international competition with licensed operators required to donate 40 percent of any profits to local good causes, which is down from the current 50 percent required of the current state-run De Lotto and Staatsloterij. Finally, online gambling is to be legalised beyond the current sole Holland Casino licence with an annual tax rate on profits
set at 20 percent. Teeven stated that licensed operators will be able to offer online poker, casino games and sportsbetting so long as they meet ‘very strict conditions’ to be laid out by the Kansspelautoriteit. Online gambling licence holders will be required to contribute to a special fund for the prevention of problem gambling while there will also be a national register of players that are to be banned due to breaking self-imposed betting limits. “The Dutch Betting and Gaming Act currently does not allow licences for online gambling,” read a statement from Teeven. “This makes it impossible to offer legal Internet gambling while thousands of Dutch players take part in daily online games such as poker and sportsbetting. The players do not get the protections offered by government regulation and oversight. We want players to enjoy responsible, reliable and verifiable offerings and be protected from the risks of gambling. The Kansspelautoriteit will monitor compliance established for providers by the permit conditions.”
NEW CASINO UNITED KINGDOM
Southend welcoming new Grosvenor Casino
ritish casino and bingo hall operator Rank Group is spending upwards of £6m (E7.5m) in order to open a new Grosvenor Casino and Mecca Bingo venue in the Essex seaside resort of Southend-On-Sea. Due to open on September 19, the 24-hour casino is to house a 100-seat poker room available for private functions and tuition sessions in addition to slot machines, electronic gaming terminals and a VIP room for highstakes games. Located below the Park Inn Palace Hotel and across the street from the town’s world-famous pier, the venue will also feature a restaurant and bar alongside a separate sports lounge with betting terminals
B
8 | casinoreview August 2014
will create more than 100 jobs. “Southend is a popular seaside town with a long-established association with entertainment and innovation, making it ideal,” said Tom Docherty, general manager for the new casino. “We’re confident our new casino will attract new and existing gamers into Southend with its state-of-the-art facilities and further increase interest in the area as a key tourist destination. It will be a stylish new venue where showing football, rugby, cricket, box- you can enjoy the thrill of gaming and ing and motor racing. live sports around-the-clock and also Described as ‘a new and exciting support employment in the area. venue [that will be] perfect for serious “We’re hugely excited about our gamers or those just looking for a fun sports lounge and sportsbetting facili[or] alternative night out’, the ties as this will be only the second Southend casino has brought much- Grosvenor Casino in the UK to have needed investment to the seafront and such facilities.”
SWEDEN
weden’s state-owned gambling monopoly, Svenska Spel, has recorded a profit of SEK1.1bn (E119m) in the second quarter of 2014, down 6.4 per cent on the same period last year. Revenues for the gaming group were down six per cent to SEK2.2bn (E238m). According to CEO Lennart Käll, the decrease in both revenues and earnings was expected, as Svenska Spel implemented a range of responsible gambling measures during the period. This included a removal of all bonuses and promotions that were known to increase compulsive gaming habits. The new responsible gaming programme, which also includes mandatory registration of games, was introduced in order to enhance consumer protection and reduce opportunities for fraud in the form of match fixing and money laundering. Following the secondquarter results announcement, Käll presented a request to add an online casino to its current offer. Should the Swedish government accept the request, Svenska Spel would become the only licensed casino operator in the Scandinavian country.
S
Born from fun.®
Multi-game. Multi-fun. All in one. When it comes to finding the most exciting slot machine to play on the floor, the best choice is not having to make one at all. The new KONAMI SeleXionTM multigame offers players instant access to a variety of their favorite games to keep them entertained and playing longer. Plus, casinos can maximize their titles with limited floor space. gaming.konami.com www.gaming.konami.com
CR142-p10-12-Asia_Coinslot NEW 13/08/2014 16:07 Page 1
News
Asia & Oceania CASINO RESORT
Tahiti is a name that conjures magical images of a pacific island paradise - but its tourism industry has failed to shine recently. A brand new resort with a casino at its heart is what the government is betting on to bring the visitors back.
Hawaiian architects win contract for Tahitian casino resort
FRENCH POLYNESIA
A
US$3bn casino hotel resort complex for the island of Tahiti has been approved by the president of French Polynesia, Gaston Flosse. The design by Group 70 International, a firm of architects from Hawaii, won the approval of a jury over rival bids from China and France in the final round to create what at 53 hectares will be the largest leisure resort in the territory. It will be located on the western side of the island and will be called Tahiti Mahana Beach Resorts and Spa. Group 70 will also act as interior designer and lead civil engineer on the project, which is being led by the government. The president has pledged to find the investors to finance the development. In addition to
10 | casinoreview August 2014
the casino, the resort will feature five hotels ranging from three-star to six-star, a convention centre, cinemas, a water park and highend retail outlets. There will also be a marina, time-share apartments and condominiums and an underwater spa. The resort will be located on the site of the former Sofitel Tahiti Maeava Beach, which closed down in 2012. The government hopes this project will help to reignite tourism in Tahiti and stimulate its economy. Francis Oda, chairman of Group 70, said: “We were up against 77 other international companies for the contract, so we are very pleased to be back in this beautiful country and contribute to its expansive redevelopment.” The resort’s design
draws on the unique characteristics of French Polynesian culture while offering guests the very best in luxury tropical accommodation. The design is based on the Polynesian voyaging tradition with structural elements and imagery taken from navigational charts and canoes: the resort’s 106m central tower is in the shape of a sail. While it looks to the past for design ideas, its engineering will be very much of this century, featuring for example an environmentally friendly sea-water air conditioning system. However, inevitably, the project is not without its critics. Alex du Prel, editor of monthly news magazine Tahiti Pacifique, called the project “a pipedream”. He said: “I wouldn’t qualify it as
pure propaganda but it is definitely a political move to announce all this. It is to project an image to say ‘We the government, we do things, we move ahead,’ and so on.” He added that what would bring more tourists are cheaper airfares from the United States and better marketing. The casino element has of course attracted significant resistance as well. Gambling was banned in 1999, where previously it had been a significant part of the tourism offer. Former president Oscar Temaru has announced his implacable opposition to the reintroduction of casino gambling and has joined with local churches to organise a protest march.
A map of the new resort
CR142-p10-12-Asia_Coinslot NEW 13/08/2014 16:09 Page 2
FIJI / FRENCH POLYNESIA / HONG KONG / JAPAN / MACAU / SRI LANKA / YXYXYXY VIETNAM Melcro Crown 38
LAWRENCE HO: “WITH ONGOING SUPPORT FROM LOCAL AND MAINLAND CHINESE GOVERNMENTS WE EXPECT MACAU TO CONTINUE TO EVOLVE INTO THE LEADING GAMING DESTINATION IN ASIA.”
DEVELOPMENT The central tower is reminiscent of a Polynesian canoe sail
John Keells breaks ground on Waterfront Project SRI LANKA
ri Lanka’s largest listed conglomerate, John Keells Holdings, has broke ground on its new $650m (E482.5m) Waterfront Project and hopes to open the planned 900-room luxury hotel, casino and shopping mall complex in 2018. Representing the Asian nation’s largest ever private sector investment by a domestic firm, the Waterfront Project is located on land occupied by John Keels subsidiaries Ceylon Cold Stores, John Keells Properties and Waterfront Properties on Slave Island in Colombo and is also slated to contain conference venues, residential apartments and an office complex. Sri Lankan officials want to double the number of foreign visitors to the island nation by 2016 to 2.5m and approved the development after noting that increasingly large numbers of tourists from neighbouring India were travelling to Singapore, Malaysia and Macau where they could gamble. As part of a new post-war
S
ANALYSIS ntegrated Resorts are popping up everywhere and there is a reason for that they seem to offer what many travellers are looking for: luxurious accommodation and eye-catching locations at a price they are willing to pay. Casinos fundamentally attract a core of people with aspirational tendencies who relish these environments. There is nothing like this in French Polynesia; Tahiti is a name associated with exoticism; provided the government can find the investors, it is likely to do well.
I
regional tourism strategy, the government is offering ten-year tax breaks on income generated from visitors while casinos will pay a duty of only six percent for the ensuing twelve years. In addition, the government has also designated a street along Lake Beira for new casinos to create Sri Lanka’s very own miniature Las Vegas Strip. This area is to be home to the new Queensbury Integrated Resort and Casino development from entrepreneur
ASIA ROUND-UP n India, the five floating casinos in the southern state of Goa risk not having their licences renewed if they do not relocate from the Mandovi River by December of next year. The local government in the former Portuguese colony decided last year not to licence any additional casinos and to force existing venues to relocate further away from the state capital and largest city, Panaji. However, operators have not been provided with any guidelines as to suitable relocation sites with chief minister Manohar Parrikar stating that authorities are not concerned about where the casinos moor their businesses. Macau casino operator Galaxy Entertainment Group has launched share award and salary bonus schemes for staff after hundreds of employees at its Galaxy Macau (pictured) and StarWorld
I
Dhammika Perera, one of the country’s richest men, that is to include a 500-room hotel, a convention centre and a shopping mall. There is also the $450m (E334.2m) Crown Colombo project from Crown Resorts Limited, which is set to open in 2016 with a 400-room hotel, high-roller casino, restaurants and a convention centre. Photo Ref: Waterfront_Project.jpg
RESORT CASINO
Fiji casino resort plans in chaos and construction has still not begun. These delays along with a lack onfusion abounds in Fiji of communication saw the tribe, after news emerged that the which operates a casino some 27 developer originally awarded the Pacific island nation’s first casino resort licence late in 2011 has reportedly sold its stake to an unknown third party. The $155m (E115.5m) five-star project was due to be built near the town of Nadi on the western side of the main island of Viti Levu but developer One Hundred Sands miles southeast of Seattle, pull out Limited, which had been awarded of the deal after investing around a 15-year exclusive licence in part- $1.5m (E1.1m). The aboriginal nership with the Snoqualmie group subsequently filed a lawsuit Indian Tribe of Washington state, in hopes of recovering some of soon ran into a series of setbacks these funds with chairwoman CarFIJI
C
olyn Lubenau revealing that Fijibased One Hundred Sands had recently sold its interest to another party. Professor Biman Prasad, former dean of economics at the University of the South Pacific in Suva and leader of the minority National Federation Party, stated that he was not surprised by the news as the original deal had never ‘felt right’. “You know, right from the start, it appeared to be something that was wishful thinking on the part of this government,” said Prasad. “That suddenly investors from outside the country will come in with millions of dollars and undertake some serious investment.”
Macau properties petitioned the Hong Kong-listed firm for increased salaries. The Special Share Award programme will see all full-time employees at senior manager grade and below handed company shares equal to three times their salary while a Special Bonus Award equivalent to one month’s salary is to be issued in July 2015 and 2016. In Vietnam, hotel and resort developer Banyan Tree Holdings Limited has announced that it soon expects to be granted a casino licence for its Laguna Lang Co beach resort located along the nation’s central coast. The 692-acre resort opened in March of 2013 and the Singaporelisted developer wants to include a casino alongside Angsanabranded hotels and spas, convention facilities, private villas and an 18-hole golf course designed by Nick Faldo. August 2014 casinoreview
| 11
Outstanding speaker line-up confirmed for Macao Gaming Summit
O
rganisers of the upcoming Macao Gaming Summit, which takes place alongside the Macao Gaming Show, (18-20 November, 2014, Venetian Macao) have confirmed a speaker line-up consisting of many of the leading authorities on gaming in Asia. The 2014 Summit, whose theme is ‘Asian Gaming: Looking beyond the Horizon’, will feature a hand-picked line-up of speakers all of whom have a detailed knowledge of the Asian gaming market. Business essential topics
being covered at MGS include the Asia-Pacific regulatory environment; the future of gaming in Macao and beyond; opportunities in AsiaPacific as well as updates on mature, emerging and future markets; the latest developments, challenges, solutions and opportunities in iGaming and organisational best practices in gaming. Ms Ira Iskandar, Conference Manager at Koelnmesse, the event and conference organisation partner of MGS said: “We know from
the research that was undertaken amongst attendees last year, howimportant the Summit is to them. Attendees have a real thirst for knowledge and being able to, for example, learn how to tap into the lucrative Chinese market, which is the title of one of our seminars, as well as understanding how legislation governs gaming in Asia Pacific, has great value. We have a mixture of industry names, such as Reinout H.M. Te Brake, Founder and Chairman, iQU (Netherlands), regarded as one of the leading thought leaders of the gaming industry, appearing alongside experts from the region such as Mikio Tanji, Executive Advisor, Gaming Capital Management (Japan) and Wai-Ming Yap, Director, Stamford Law Corporation who will be examining the legal issues surrounding iGaming in Singapore. With confirmed speakers from throughout the region including Cambodia, Taiwan, Singapore, Macao, Laos and Japan, MGS really is, ‘By Asia for the world’. Delegates attending theSummit will have the opportunity to participate fully in the Asian gaming conversation, gain insightful information from a host of industry experts, and network with fellow professionals.”
Bally to defend title as Slot Experience Center gets even better
T
he Slot Experience Center (SEC), which was launched to much acclaim last year, is set to become one of the most influential test beds in the industry for the world’s leading Electronic Gaming Machine (EGM) manufacturers. Visitors to MGS will have the opportunity to test drive the latest machines and provide crucial feedback to participating manufacturers. Players, together with senior level slot experts will evaluate the games across a num-
ber of criteria including game theme, graphics, sound and the overall playing experience with awards going to the EGM manufacturers who receive the highest number of votes. In 2013 Bally Technologies ‘Titanic’ swept the awards, recording the highest number of votes for Best Music and Audio; Best Game Theme; Best Users Experience and Best Game Graphics. David So, Slot Experience Center Manager said: “Last year 877
For more information on MGS 2014, download our show brochure at www.macaogamingshow.com
professional and general players voted on the 40 models which were installed by the world’s major manufactures. We will be growing this popular feature with more machines and more game styles as well as introducing new voting categories in order to more accurately reflect the diversity of today’s EGM sector. We are also inviting seniorlevel slot experts from major casino operators to form an industry review panel in order to provide professional feedback.”
Jay Chun ‘honoured’ as MGS receives government support
G
aming Inspection and Coordination Bureau (DICJ) and Macau Trade and Investment Promotion Institute (IPIM) have agreed to be the supporting organisation for MGS. Their support is an endorsement of what the organisers have achieved in promoting the healthy development of the gaming industry as well as the meetings, incentives, conferences and exhibitions (MICE) industry in Macau. It is also recognition of MGS’s efforts in supporting the government policy plan of diversifying the Macau economy, helping to raise the international profile of Macau as an undisputed centre for the gaming industry and a
leading destination for MICE. Jay Chun, Chairman of Macau Gaming Equipment Manufacturers Association (MGEMA), the organiser of MGS, said: “As the only gaming exhibition to receive these endorsements, we are honoured and extremely proud. IPIM is a government agency designated to promote trade and investment activities of the territory. Last year, MGS attracted 102 exhibitors and 8,000 visitors, many of them came from overseas. With support from IPIM, we hope that MGS 2014 can attract more international gaming companies to do business in or invest into Macau. The high profile that MGS has built on the international stage is recognised
as being of great importance to the economy. With more business people traveling to Macau, it helps to create better trade opportunities and open channels for international cooperation.”
GB Media win exclusive sales contract with Macao Gaming Show
G
B Media (GBM), publishers of International Casino Review, has secured a prestigious commercial contract covering stand sales and associated exhibition and conference sponsorships for November’s second Macao Gaming Show. The agreement covers key regions comprising Europe, USA, Central & South America, the Middle East and Africa, all of which are being handled by GBM on an exclusive basis. John Sullivan, Director at GB Media said: After the tremendous success of MGS 2013 which saw almost 8,000 international visitors walk through the doors of theVenetian Macao
to meet with 102 exhibiting companies, MGS has established itself as the chosen meeting place for exhibitors, operators, managers and buyers interested in doing gaming business in Asia. MGS 2014 will also feature the Macao Gaming Summit which will see speakers and gaming industryexperts from around the world discussing and debating the important issues confronting the Asian gaming industry. For information on the exciting stand options and sponsorship opportunities available at the gaming event which is ‘By Asia For The World’ contact John Sullivan at jsullivan@gbmedia.eu or call +44 (0) 1204 396 397
By Asia
for the world
MGS is back and even better! Now’s the time to book your attendance at MGS 2014 18th – 20th November. MGS is the only show that is truly representative of the Asian gaming industry. And the only event to earn the title ‘by Asia, for the World’.
Come and see the entire gaming industry Gaming Equipment & Accessories. Gaming Promoters & VIP Clubs. Casino Fixtures & Fittings. Promotional Services & Memorabilia. Food & Beverage. Entertainment & Performance.
MGS means business Exhibiting at MGS makes fantastic business sense. Reach out to casinos, integrated resorts, regulators and gaming affiliated businesses. 83% of MGS visitors are either decision makers or have direct input to purchasing decisions. An overwhelming majority (95%) said they would be returning to MGS in 2014.
Feature rich Visit the highly acclaimed Slot Experience Center. Gain invaluable knowledge at the Macao Gaming Summit. Promote your brands on MGSTV.
The best networking in Asia Invaluable business networking opportunities. Get to know potential business partners in a relaxed and casual atmosphere.
Venetian Macao 18-20 November 2014
And we will even help pay your way! The Macao SAR Government is once again offering attractive subsidies to qualified buyers from air fares to hotel accommodation, making MGS the key annual meeting hub for casino procurement teams.
CR142-p10-12-Asia_Coinslot NEW 13/08/2014 16:55 Page 3
News
Asia & Oceania
Macao Gaming Show 47
MACAO GAMING SHOW: “THE RESPONSE FROM THE INTERNATIONAL GAMING COMMUNITY HAS BEEN VERY POSITIVE. 2014 IS ON COURSE TO BE A BIGGER EVENT...”
INVESTMENT
The burgeoning Vietnamese middleclass could see NewCity Capital’s investment in an under-construction casino resort pay off in a big way.
VIETNAM
asino resort developer Asian Coast Development has unveiled private equity firm NewCity Capital as its ‘new financial partner’ in the $4b (E2.9b) Ho Tram Strip beachside project currently under construction in southern Vietnam. A privately held Canadian firm, Asian Coast did not release specific details or amounts but the announcement was welcomed by its majority shareholder, Harbinger Capital Partners. “We are very excited to
C
LEGISLATION
Japan to set up casinos study committee
New investor for Ho Tram Strip development have an investor that brings capital as well as marketing and operating expertise to our project,” said Phil Falcone, founder of Harbinger Capital Partners. The first phase of the Ho Tram Strip, The Grand Ho Tram Strip, opened a year ago complete with a $500m (E371.2m) 541-room hotel tower designed by Paul Steelman featuring a 90table gaming floor in addition to meeting and convention spaces, ten bars and restaurants, a spa, teen and children’s areas, three swimming pools and luxury retail shops. This was followed earlier this year by The Bluffs, which is a cham-
pionship golf course designed by legendary Australian professional Greg Norman and set alongside a 2.2 kilometre beach. Located a two-hour drive from the 8.1m people of Ho Chi Minh City and surrounded by a protected forest, the completed project is expected to include up to five integrated resorts featuring over 9,000 five-star hotel rooms and two casino offering 180 tables alongside some 2,000 electronic gaming machines. For its part, NewCity Capital was founded by American investor Chien Lee and is co-operating via a new vehicle called NewCity
Ho Tram Investment Company and an entity named The GrandNewCity. “I expect Vietnam to be one of the fastest growing tourism markets in the region and the Ho Tram Strip development has a first mover advantage in the large scale integrated resort market,” said Lee. Under current Vietnamese law, only holders of foreign passports are permitted to gamble in the country’s casinos. But, a recent report from the Boston Consulting Group found that two-thirds of the country’s fast-growing population of 90m is under the age of 30 while its consumer
middle-class is expected to double by 2020. Although locals can wager on the state lottery in addition to dog and horseracing in some regions, there remains large demand for gambling products in the nation with a recent illegal soccer betting operation uncovered by police reportedly handling $307m (£227.9m) in total bets. “The Grand is one of the nine major gaming licences in Asia including the six in Macau and two in Singapore,” said Paul Conway from NewCity Capital. “Our 405 acres also allows exciting expansion opportunities in the future.”
GOVERNMENT SUPPORT
Macau government support for exhibition which is ‘By Asia for the world’ MACAU
T
he Macao Gaming Show (MGS) has received the support from two influential government departments. Gaming Inspection and Coordination Bureau (DICJ) and Macau Trade and Investment Promotion Institute (IPIM) have agreed to be the supporting organisation for the prestigious event. Their support is regarded as a significant motivator and an endorsement of what the organisers have achieved in promoting the healthy development of the gaming industry as well as the
meetings, incentives, conferences and exhibitions (MICE) industry in Macau. It is also recognition of MGS’s efforts in supporting the government policy plan of diversifying the Macau economy, helping to raise the international profile of Macau as an undisputed centre for the gaming industry and a leading destination for MICE. Jay Chun, chairman of Macau Gaming Equipment Manufacturers Association (MGEMA), the organiser of MGS, said: “As the only gaming exhibition to receive these endorsements, we are honoured and extremely proud. IPIM is a govern-
14 | casinoreview August 2014
ment agency designated to promote trade and investment activities of the territory. Last year, MGS attracted 102 exhibitors and 8,000 visitors, many of them came from overseas. With support from IPIM, we hope that MGS 2014 can attract more international gaming companies to do business in or invest into Macau. The high profile that MGS has built on the international stage is recognised as being of great importance to the economy. With more business people traveling to Macau, it helps to create better trade opportunities and open channels for international co-operation.
“DICJ has a very close involvement with our industry. They provide guidance on the definition and execution of the economic policies on gaming to the Chief Executive of Macau SAR. Gaming is now the pillar industry in Macau and of course it is fitting to have a leading exhibition which knows the local industry and represents it on the world stage. The success of the gaming business in Macau is primarily due to the policy support by the governments of the People’s Republic of China and Macau SAR. Once again, we are honoured to have received the support of DICJ.”
The Macao Gaming Show is the first large scale gaming and entertainment exhibition organised and run by Macau organisations and supported by government departments. MGS 2014 will have a floor area ofover 10,000 m2. Exhibitors and buyers eyeing the Asian market will becoming from all corners of the world. The show covers six gaming industry segments, including a wide range of gaming equipment, fixtures, accessories, and services. As 2014 marks the 15th anniversary of the establishment of the Macau SAR, MGS will also be celebrating this special event during the show.
JAPAN
T
o help speed up the process of opening casino resorts in time for the 2020 Summer Olympics in Tokyo, the Japanese government plans to set up a study committee consisting of officials from multiple agencies. According to chief cabinet secretary Yoshihide Suga, the body is to investigate gaming regulatory setups in other nations that have casinos. “We will need to identify issues to deal with by looking into cases and legal systems in other countries,” said 65year-old Suga. December saw the ruling Liberal Democratic Party, the Japan Restoration Party and People’s Life Party submit the Integrated Resorts Promotion Bill to the nation’s parliament, the Diet, and the draft legislation was briefly discussed before legislators broke for their summer holidays on June 22. The measure has the support of Prime Minister Shinzo Abe and is expected to be passed sometime in the autumn with operators including Galaxy Entertainment, MGM Resorts, Melco Crown, Las Vegas Sands, SJM Holdings and Genting Singapore known to be interested in vying for one of the licences. In addition, the operator of Osaka’s Universal Studios Japan theme park, USJ Company Limited, is also reportedly interested in operating a casino should legislators pass the Integrated Resorts Promotion Bill. According to a report from the Kyodo news agency, the operator is considering whether to bid for the right to operate a planned amusement complex with a casino envisioned for the 150-hectare Yumeshima Island in Osaka Bay.
The epic journey that audiences love worldwide continues RQERDUG WWKLV PDJQLĂ&#x;FHQW VORW P PDFKLQH ) )URP Ă&#x;UVW FODVV RSXOHQFH WWR WWKLUG FODVV WWKULOOV SOD\HUV FDQ HH[SORUH IRXU :KHHO %RQXV WZR )UHH * *DPHV P\VWHU\ IIHDWXUHV D 8 8 6SLQ™ : bonuses and an interactive iDeck™ HH[SHULHQFH GUDZQ VVWUDLJKW IURP -DFNĂ–V VNHWFKERRN 7KUHH SURJUHVVLYH MMDFNSRWV ZLOO DWWUDFW SSOD\HUV WWR D JJDPH DV FDSWLYDWLQJ D DV WKH Ă˜Ă˜VKLS RI GUHDPVĂ™ WWKDW LQVSLUHG WKH EHORYHG WLPH $FDGHP\ TM $ZDUG TM ZLQQLQJ Ă&#x;OP Make history all over again with 7LWDQLF RQ \RXU VORW Ă Ă RRU FFRQWDFW \ \RXU %DOO\ $FFRXQW ([HFXWLYH RRU YLVLW %DOO\7HFK FRP
TM
TM M Š 201 2 4 Ba Ballyy Te Technol chnol hnol noloogies nologies gies. Alll righ rigg tss reeserve s d. Titanic Ti T tanic t & Š 199 997, 97 2014 201 Tw Twent wentie w ie h Century ieth Centu ent entu en nt ryy Fox Film F lm Cor Fil o porat oration ioon ion o Al rights rights htss rese ress rved. rved ved. eedd ed. and Paramo and Paramount aramoount Pictur cturreess C Corpora pora ooraation. oon. n. All n.
CR142-p16-17-Africa_Coinslot NEW 13/08/2014 15:22 Page 1
News
Africa & Middle East
Montecasino resort north of Gauteng is Tsogo Sun’s flagship property
SOUTH AFRICA
ANALYSIS sogo Sun has been developing rapidly in the last five or more years, with major merger deals and acquisitions. The withdrawal of SABMiller, once the largest shareholder in the company, should be seen as a vote of confidence in the sector, as should the interest shown in the share disposal. On the one hand SABMiller has seen its investment grow substantially even while its share of the company has diminished, and the on the other investors clearly feel Tsogo Sun has a positive future. The South African economy might not yet be sparkling but this company has its fingers in enough pies to benefit when it does.
T
OWNERSHIP
Tsogo Sun ownership consolidated as SABMiller exits After Grand Parade Investments quit the gaming industry in June, another major investor in South African casinos, SABMiller, has followed suit with its decision to sell its substantial shares in Tsogo Sun.
O
ne of the world’s largest brewing companies, SABMiller, is to disinvest completely in one of South Africa’s largest casino operators Tsogo Sun in which it has held the second largest shareholding of an effective 39.6 per cent. The largest shareholder is Black Economic Empowerment Enterprise (BEEE) investor, Hosken Consolidated International (HCI). Through its wholly
16 | casinoreview August 2014
owned subsidiary SABSA Holdings, SABMiller has sold almost 294m ordinary shares through a secondary placing to selected international and South African investors - around 68 per cent of its former holding - for around R7.6bn (E535m) or R27.75 (E1.81) per share. Around 134m shares will be bought by Tsogo Sun itself for a consideration of R2.8bn (E183m) - a dis-
count of about 20 per cent on the placing price. The company then intends to cancel just over 130m shares, a move that will push up the share price. As the repurchase transaction involves more than five per cent of the company’s total ordinary shares it requires approval from existing shareholders who will also get to vote on whether to allow member of the executive manage-
ment team to buy the remaining almost 7.8m shares by means of an “executive loan facility”. The final elements of the deal are expected to be complete by early September. Tsogo Sun CEO Marcel von Aulock, said: “It’s a good deal all around… We get to buy shares back at good discount to the placement price. Tsogo does not get stretched in the buy-
Marcel von Aulock, CEO of Tsogo Sun
CR142-p16-17-Africa_Coinslot NEW 13/08/2014 15:29 Page 2
SOUTH AFRICA YXYXYXY Emperor’s Palace 47
AFRICAN SUMMIT: THE SECOND ANNUAL AFRICAN GAMING SUMMIT AND EXHIBITION WILL BE HELD FROM OCTOBER 6-8 DRAWING INDUSTRY LEADERS FROM AROUND THE WORLD.
back exercise and won’t have to cut back on planned capital expenditure.” Alan Clark, chief executive of SABMiller, said: “We are very pleased with the outcome of this offering of Tsogo Sun shares, which generated strong interest from the investment community. This is testament to the high quality business and management of Tsogo Sun and we wish the management team, directors, employees and shareholders of Tsogo Sun the very best for the future.” HCI did not take part in the share placement, however, the share cancellation means its percentage holding in the company will rise without it having to make any outlay at all. This transaction - first signalled in April and settled on July 28 - is the second major realignment of ownership of South Africa’s casino operators in as many months. In June, Grand Parade Investments, also a BEEE investment vehicle, decided to sell its holdings in Sun International (in which Tsogo Sun is also a shareholder) in order to concentrate its financial resources on its new Burger King master franchise in South Africa. GPI will continue to manufacture gaming machines in the country in partnership with the Gauselmann Group’s Merkur subsidiary. Tsogo Sun is South Africa’s second largest casino operator after Sun International with 14 gaming and entertainment destinations in six of the country’s nine provinces. It also operates 92 hotels with more than 14,500 rooms across all sectors of the market, from luxury to budget, across the whole continent, the Middle East and the Seychelles as well as often associated theatres, cinemas, restaurants and bars. In addition it operates the Sandton Convention Centre in Johannesburg. In the year to the end of March 2014, Tsogo Sun reported revenues of R10.78bn (E758.4m) and EBITDA of R4.21bn (E296.2m).
AFRICA ROUND-UP
DIVERSIFICATION
Grand Parade Investments shifts interests from casino to cuisine outh African gaming and leisure entertainment firm Grand Parade Investments has agreed to pay $27.6m (E20.6m) in order to purchase ten percent of the issued share capital of restaurant franchiser Spur Corporation. Cape Town-based Grand Parade holds minority stakes in The Table Bay, Sibaya Casino and GrandWest Casino and Entertainment World developments operated by Sun International and recently restructured its investments by offloading 25.1 percent shares in both the SunWest and Worcester Casino properties to Tsogo Sun while also selling its 70 percent interest in machine operator GPI Slots. “The proposed transaction offers Grand Parade Investments a unique opportunity to subscribe for a mean-
S
n South Africa, the Emperors Palace Hotel Casino (pictured) near Johannesburg is preparing to host the latest stop of the World Poker Tour (WPT), the third annual $3,500 (E2,613) buy-in WPT Emperors Palace Poker Classic. Scheduled to run from November 13-16, organisers have lowered the overall buy-in from last year by $100 (E74.68) in hopes of increasing the number of runners past 2013’s field of 191 while the prize pool is expected to top the $561,528
I
ingful stake in Spur on attractive For its part, Cape Town-based Spur terms,” read a statement from Grand operates 309 steakhouse franchises Parade Investments. under the Spur Steak Ranches brand “The proposed transaction also in South Africa, Kenya, Tanzania, Nigeria, Mauritius and Ireland alongside 70 Captain DoRego’s outlets throughout southern Africa. “Grand Parade Investments has a track record of adding value to its investments and the board believes that the proposed transaction represents an attractive investment opportunity,” said Grand Parade, which additionally holds the franchise for Burger King in South Africa. “The proposed transaction is in-line with Grand Parade Investoffers Grand Parade Investments and ments’ strategy to grow and diversify its group businesses an opportunity its investment portfolio beyond the to partner with a leading franchise gaming sector, focusing on busirestaurant operator to potentially nesses that meet management’s tarunlock meaningful synergies for the get internal rate of return and other benefit of both parties.” strategic objectives.”
LICENCE
Sun International receives goahead for new Menlyn Maine casino
A
frican casino resort operator Sun International is to proceed with plans to construct a new $280.2m (E209.5m) entertainment complex near the city of Pretoria after receiving permission to transfer an existing licence from another property. The Gauteng Gambling Board has approved Sun International’s request to close the Morula Casino and Hotel north of Pretoria and assign the ageing property’s gambling licence to the planned Time Square At Menlyn Maine development 32 miles away. Johannesburg-based Sun International operates 27 casinos in eight countries including 16 in
its home nation and revealed that it would hold a 74.9 percent stake in the new development, which is expected to take 36 months to complete and feature a casino, hotel, conference centre and an indoor facility for concerts. It stated that the Menlyn Maine site is expected to generate $158.4m (E118.5m) in taxes over its first five years alongside estimated revenues to the government of $251.7m (E188.3m). “Morula Casino and Hotel has for some time experienced a decline in revenues due primarily to its relatively inaccessible location and the growth of non-casino gambling activities in its catchment area,” said Graeme
Stephens, CEO of Sun International. “Menlyn Maine is in an area that is closer to source markets and is well serviced by highway access. This will maximise the potential of the licence for all stakeholders including employees, Sun International shareholders and provincial and national government in terms of gambling taxes. “Importantly, Sun International’s Time Square At Menlyn Maine will act as a major catalyst for the entire precinct. It will bring to the area an urban entertainment facility on a scale it warrants and deserves to serve local residents and visitors.”
(E419,306) seen for the second annual event. Elsewhere, research firm Arab Advisors Group has published the findings of its most recent study showing that the popularity of online games is growing across the Middle East. The 51-page Online Games In The Arab World 2014 investigation reports that there were 117 massively multi-player online (MMO) games available in Arabic language as of March alongside 35 social titles available via Facebook. The study found that 48 percent of social games published today in Arabic were the product of regional developers although 60 to 80 percent of MMO titles in this language were from European or Asian firms.
August 2014 casinoreview
| 17
CR142-p18-20-NAmerica_Coinslot NEW 13/08/2014 16:57 Page 1
News
North America
SERVICES
Water threat to Las Vega as Lake Mead dries Six-and-a-half years ago International Casino Review carried a report on a shocking study that claimed Lake Mead, the reservoir that serves Las Vegas and a large part of the American south west, could be dry within 13 years. At the halfway point, the predictions seem to be coming true.
L UNITED STATES
ake Mead, the reservoir created by the Hoover Dam and the main water source for Las Vegas, has reached its lowest point since it was initially filled in 1935, according to the US Bureau of Reclamation (USBR), which manages water resources in the desert region. In July, the lake surface fell to below 1,082ft (330m) above sea level: it is projected to fall to around 1,080ft (just over 329m) by November before recovering slightly as more water is released into it from Lake Powell on the Utah/Arizona border. Lake Mead is currently running at 39 per cent capacity. If it falls to 1,075ft (just under 328m) above sea level, a water shortage will be declared. Lake Powell is
18 | casinoreview August 2014
faring slightly better at 52 per cent of capacity. Terry Fulp, USBR’s regional director for the Lower Colorado region, said: “We will meet our water orders this year and we are not projecting a shortage condition in 2015. We continue to closely monitor the projections of declining lake levels and are working with stakeholders throughout the Lower Basin to keep as much water in Lake Mead as we can through various storage and conservation efforts.” He added: “We need to use our water much more wisely than we have. As a society we have to recognise the value of water and the scarcity of water.” Not only are the reservoir levels falling but also
groundwater levels have plummeted: according to a study by the University of California, Irvine and NASA, three-quarters of the water lost from the Colorado Basin in the last ten years has been due to groundwater depletion. In February 2008, the Scripps Institution of Oceanography gave a longterm downbeat assessment of the future availability of water resources, given that 40m people and rising depend on Lake Mead. The south west has experienced drought conditions for around 15 years, with only a few wet years to relieve the increasing pressure. It said that drought combined with overuse, natural evaporation and climate change could see Las Vegas without
sufficient water as early as 2021. Las Vegas gets around 90 per cent of its water from Lake Mead and with more than 150,000 guest rooms and around 40 golf clubs is a massive consumer. In 2008, Las Vegas was the fastest growing city in the US: the financial crisis put a brake on but never quite stopped it. At an event in Las Vegas marking the third annual Colorado River Day, state senator Ruben Kihuen said: “If we don’t have water here in our city, we don’t have a city. We are facing a lot of challenges with the Colorado River. The bottom line is we need to conserve water, and there are solutions. Some of those solutions include improving
urban conservation, improving agricultural efficiency and establishing water banks.” There are substantial water conservation programmes in place in Las Vegas, including using three-times treated waste water on golf courses, as well as for industry and irrigation, with the remainder piped back to Lake Mead. Las Vegas city councilman Bob Coffin said Las Vegas has led the way with innovative conservation efforts, but more will be needed in the future. “We are very close to the point where we are going to have to figure out how to do a fourth treatment so that we can drink the water … and it’s going to cost a lot of money.”
CR142-p18-20-NAmerica_Coinslot NEW 13/08/2014 16:57 Page 2
YXYXYXY ATLANTIC CITY / IOWA / LOWER COLORADO / NEW JERSEY / OHIO Taking over 28
BUSINESS MOVES: OVER RECENT MONTHS, THE WORLD CASINO INDUSTRY HAS EXPERIENCED A GREAT DEAL OF POST-RECESSION MOVEMENT. MAJOR MANUFACTURERS AND SUPPLIERS ARE JOSTLING FOR POSITION...
NORTH AMERICA ROUND-UP
NEW DEVELOPMENT Lake Mead is at its lowest level since the Hoover Dam was finished
Billionaire plans casino for new Liberty Rising development
egas UNITED STATES
ANALYSIS t is unlikely that Las Vegas will have to shut up shop in 2021 as originally predicted: there are still many billions of litres of water in the system and still, just, enough water in the cycle to allow it to continue for many years to come. However, that is no reason for complacency: the city is not the only user dependent on Lake Mead so it will have to make significant investments in water conservation and treatment if it is to maintain its reputation for luxury in the face of more basic demands from agriculture, say. The casinos, which are the principal attractions and the principal revenue drivers, are also likely to be the principal source of funds for this investment.
I
The Manhattan cityscape could soon be about to change - well, the view from the city at least. Joe Fireman has his sights set firmly on a casino on the shoreline opposite NYC. “You’ve got to think big”, he argues; and nowhere is big better explored than in the environs of the Big Apple itself.
A
merican entrepreneur Joe Fireman has announced plans that could see a $4.6bn (E3.4bn) casino and motorsports facility constructed on the New Jersey side of the Hudson River directly across from Manhattan. The billionaire former CEO of sports equipment manufacturer Reebok wants the Liberty Rising development to include a 95-storey multi-use tower containing a casino, hotel and apartments alongside a giant Ferris wheel and a 107,500-seat motorsports stadium. The proposed development would be as tall as the just-finished 1 World Trade Center, which is tallest skyscraper in the western hemisphere, and offer panoramic views over other iconic New York City landmarks such as the Statue of Liberty, the Empire State Building and Ellis Island. Massachusetts native Fireman sold Reebok to Adidas in 2006 for $3.8bn (E2.8bn), which saw him pocket close to $700m (E519.9m), and told The New York Times that a casino in the Liberty Rising
development would be ‘the highest-grossing casino in the United States; we’re targeting the New York market’. Now chairman for Bostonbased venture capital firm Fireman Capital Partners, 70year-old Fireman spent $250m (E185.6m) while still at Reebok to transform a toxic waste dump into the prestigious Liberty National Golf Course and now wants to do the same on nearby waste ground adjacent to Liberty State Park. “You’ve got to think big,” said Jersey City mayor Steven Fulop, who revealed that he has been in discussions with Fireman for eight months. “The opportunity to have a world-class facility on the waterfront is significant from a job-creation standpoint, for tax relief and for tourism. Paul Fireman is capable of executing something like this.”
merican real estate mogul Donald Trump has filed a lawsuit in New Jersey demanding that his surname be removed from a pair of Atlantic City casinos that he helped to establish. The 68-year-old founded Trump Entertainment Resorts over 30 years ago but resigned as chairman in 2009 and now only holds a ten percent stake in the property firm. The New Jersey Superior Court action asks that the names of the Trump Taj Mahal Casino Resort (pictured) and Trump Plaza Hotel and Casino, which is facing imminent closure, be altered as they are in ‘an utter state of disrepair’ and have ‘failed to meet industry standards across a wide range of categories ranging from food and beverage services to overall cleanliness of the property’. Further south, the state of Maryland will soon have five casinos after Caesars Entertainment Corporation announced that the new two-storey urban Horseshoe Casino Baltimore is on schedule to open on the night of August 26.
A
With a 122,000 square-foot gaming floor, the $440m (E328.5m) casino will be the second largest in the eastern state and feature a selection of video lottery terminals and table games alongside a World Series Of Poker-branded poker room. Out west, California State Senator Lou Correa has shelved his proposed legislation that sought to legalise online poker after running out of time to refine the measure before putting it up for a vote. The Democrat and chairman of the Senate Governmental Organization Committee delayed his SB1366 measure with less than a month left in the current legislative session although a similar proposal from State Assembly member Reginald JonesSawyer is still in the works. August 2014 casinoreview
| 19
CR142-p18-20-NAmerica_Coinslot NEW 13/08/2014 15:44 Page 3
News
North America
Who’s the future of casino play? 38
HOLDING THE KEY: INTERPRETING THE DATA MAKES FOR VERY SOBER READING WITHIN THE AMERICAN CASINO COMMUNITY, PARTICULARLY AS ‘THE YOUNG SEEM TO BE MISSING THE GAMBLING GENE COMPLETELY’.
ACQUISITIONS
RIVERBOAT CASINOS
The teams are hard at work to keep hopes alive at the Revel Atlantic City. There is interest: but staving off a firesale is a tough task. The Boardwalk needs a success, but at what price?
Revel Atlantic City postpones bankruptcy auction UNITED STATES
The troubled Revel Atlantic City hotel and casino recently postponed a bankruptcy auction designed to find a new owner so that its lawyers would have more time to analyse a number a new takeover bids. According to documents filed with the US Bankruptcy Court in Camden, New Jersey, owner Revel Entertainment Group had received ‘a number of bids’ before an August 4 deadline and required ‘addi-
tional time to fully analyse and evaluate the bids’. Revel Atlantic City opened in April of 2012 at a cost of $2.4bn ($1.7bn) but has suffered numerous set-backs including Hurricane Sandy, which struck only six months later, and growing competition from casinos in neighbouring states such as Pennsylvania, Maryland and New York. Overall gaming revenues in Atlantic City have also decreased with last year’s tally of to $2.8bn (E2.1bn) representing a decrease of over 40 percent
since 2006. The resort casino, which has initiated bankruptcy proceedings on two occasions, offers 1,399 rooms, indoor and outdoor pools and 13 restaurants and nightclubs while its closure would see over 3,100 employees lose their jobs. The investment firm tasked with finding a buyer, Moelis and Company, revealed last month that it had reached out to more than 130 parties including gambling and hotel operators while Don Guardian, the Republican
mayor of Atlantic City, subsequently reported that six parties had made firm offers with bids of up to $200m (E149.1m). US bankruptcy court chief judge Gloria Burns ruled last month that casino executives must find a new owner for the Boardwalk property, which is the tallest structure in Atlantic City at 57-storeys and features a 130,000 square foot gaming floor complete with 2,400 slots, 130 table games and a poker room, before paying out bonuses worth $1.75m (E1.3m).
approvals from the remaining state gaming and horseracing regulatory agencies,” said Joseph Billhimer, president and COO of MTR Gaming. For its part, Eldorado is the parent of Eldorado Resorts, which operates gaming properties in Nevada and Louisiana including the Eldorado Reno and Eldorado Shreveport with the merger still subject to final regulatory approvals from gaming regulators in Nevada and Pennsylvania. “When completed, this
transaction will create a new gaming company with a diversified portfolio and the financial flexibility to capitalise on future growth opportunities,” said Gary Carano, president of Eldorado Resorts and the man set to become chairman and CEO of the new combined enterprise. “It is an exciting time for Eldorado and MTR, our collective team members, stakeholders and valued customers and we are looking forward to our combined future.”
MERGERS & ACQUISITIONS
Ohio approves MTR and Eldorado merger UNITED STATES
fter already receiving approvals from regulators in West Virginia and Louisiana, the planned merger between MTR Gaming Group Incorporated and fellow American casino operator Eldorado HoldCo has been sanctioned by the Ohio Lottery Commission. MTR Gaming runs the Mountaineer Casino Racetrack and Resort in Chester,
A
West Virginia, the Presque Isle Downs and Casino in Erie, Pennsylvania, and the Scioto Downs in Columbus, Ohio, and earlier received majority shareholder approval for the deal, which will see it combine with Eldorado under the ownership of Eclair Holdings Company. “We are pleased to receive approval from the Ohio Lottery Commission and we continue to make progress toward completing the merger with Eldorado by obtaining the
20 | casinoreview August 2014
Penn National Gaming receives Sioux City reprieve UNITED STATES
A
fter losing a District Court case last month and being told to close its Argosy Casino Sioux City riverboat casino, Penn National Gaming Incorporated has received an 11th-hour stay of execution from the Iowa Supreme Court. The Iowa Racing and Gaming Commission had ordered the downtown Missouri River venue to shut in mid-April after it failed to meet gaming licence requirements with Penn National Gaming unsuccessfully appealing to the Polk County District Court and being told to shutter the property. However, Iowa Supreme Court granted a temporary stay while it considers the appeal with no timeline being given for a final decision. Wyomissing-based Penn National Gaming was refused a renewal of its licence last year after it fell out with the Missouri River Historical Development (MRHD). State law dictates that casinos must partner with a non-profit organisation and MRHD subsequently paired with Sioux City Entertainment who had been granted permission to construct and operate the new $128.5m (E95.4m) Hard Rock Casino in the state’s fourth largest city, which is scheduled to open on August 1. “I don’t believe it disrupts anything at Hard Rock,” said Sioux City mayor Bob Scott. “From the city’s standpoint, we believe Argosy should have its day in court and the system should be allowed to work.” Argosy Casino Sioux City employs 260 people offering over 700 slots alongside poker and 22 blackjack, craps and roulette tables. “[This] doesn’t affect us,” said MRHD president Mark Monson. “We’re looking forward to August 1 and our new partnership with Hard Rock. We’re looking forward to getting and distributing funds.”
CR142-p22-23-SAmerica_Coinslot NEW 13/08/2014 16:58 Page 1
News
South America
TENDER
A clear if one-sided preference by politicians for one of three projects proposed for the city of Chillán in Bío Bío region has resulted in accusations, a court case and the process being put on hold.
‘Biased’ vote leads to Chillán tender suspension CHILE
B
oldt Peralada, the SpanishArgentinean firm that was one of three to make a serious bid for the vacant Chillán licence in Chile, has persuaded the Appeals Court to impose an injunction on the process after its proposal was awarded zero points out of 300 by a vote in the Regional Council. Chilean firm Dreams, whose proposal also scored zero, supported the case having formally withdrawn in disgust immediately after the vote citing ‘irregularities’. It was Marina del Sol that secured the most votes and a full 300 points for its US$55m plans for casino, museum, lagoon and waterpark on the PanAmerican Highway. The bid process allows
22 | casinoreview August 2014
various stakeholders to award points to each project before the technical and compliance aspects are examined by the regulator, the Superintendent of Casinos (SCJ), who will then make the final decision on the award of the licence. Based on a vote, the Regional Council can award 300 points or zero. The relevant municipality awards 150 points or nothing. The National Tourism Service can award anything up to 150 points, while the Interior Ministry anything up to 100 points. SCJ then has 1,300 points to award: whichever bid has closest to the maximum 2,000 points wins. Boldt Peralada’s Chillán Casino Resort project, pro-
poses an investment of US$54m: lawyers for the company argued successfully before the court that as a casino licence has already been decided on for the region - the matter which the Regional Council should have considered on its own - the council could not award one bidder 300 points and the others nothing. Attorney Ricardo Abdala said: “The voting was arbitrary and illegal… In this case the Regional Council considered the merits, features and quality of the bids, which is outside the regulations relating to the bid process. It is for the Superintendent of Casinos to make a ruling on the licence for Chillán in
August.” The Appeals has imposed an injunction on the process and ordered a report to be sent to the president of the Bío Bío regional government Rodrigo Díaz. No more votes on the matter by the Regional Council will be allowed. Dreams, whose proposed investment of US$87m was the largest of the three, said in an open letter: “Dreams will not continue to endorse an irregular process, so we have chosen to withdraw our bid. We have seen an infringement of our rights in the Regional Council, which has acted partially thus damaging our legitimacy. To continue in this process would be to con-
sent to this decision, which we are not prepared to do.” This is the second time that Dreams has been caught out by a Regional Council overreaching its authority: it suffered the same fate in Coquimbo over the Ovalle licence. The company said: “The board of Dreams has expressed its full commitment to the authorities and institutions as well as the entire industry to promote better regulation that avoids situations like those we have experienced in Bío Bío and Coquimbo. And until we see policy and regulatory changes here, it [the board] will continue to favour development opportunities in other Latin American countries.”
CR142-p22-23-SAmerica_Coinslot NEW 13/08/2014 16:59 Page 2
YXYXYXY CHILE / COLUMBIA GLI focus on Latin America 34
TESTING TESTING: “WE HAVE BEEN STRONGLY COMMITTED TO THE LATIN AMERICAN GAMING INDUSTRY AND WILL DO EVERYTHING TO PROVIDE THE QUALITIES NECESSARY...”
SOUTH AMERICA ROUND UP
ACQUISITION The Dreams project, now withdrawn, represented the largest investment proposal of all three bids CHILE
outh African hotel and resort casino operator Sun International Limited has paid $146m (E108.4m) in order to take full control of leading Chilean gaming firm SFI Resorts SA. Johannesburg-based Sun International previously held 44.2 percent of the company behind the Monticello Grand Casino near Santiago via a holding venture with unlisted Austrian operator Novomatic Group. It has now acquired Novomatic’s equal 44.2 percent stake in the Chilean operator while additionally purchasing a 10.5 percent investment held by a minority shareholder to give it 98.9 percent of the enterprise. “The acquisition of this additional stake is in line with our stated
S
Sun International takes control in Chile
intention to grow our presence in Latin America and in particular Chile, which has a wellregulated gaming industry and good growth prospects,” said Graeme Stephens, CEO of Sun International. “It provides us with control over a great asset and a free hand to use and incorporate it into our wider strategy for Latin America.” Sun International stated that it has addi-
tionally offered to purchase the remaining 1.1 percent of the Chilean operator on the same terms while the deal sees it assume responsibility for around $32m (E23.7m) in shareholder loans and cash. Located in the hills 57 kilometres from the Chilean capital, the Monticello Grand Casino opened in 2008 at a cost of $262m (E194.5m). It features 1,880 slots, 80 gaming
etting on leisure activities in Panama during the first five months of the year totalled $981m, according to the country’s Gaming Control Board (JCJ). This represents a 2.5 per cent increase on the $957 reported in the same period last year. While Panama’s 14 casinos continue to post growth, the JCJ said revenues in bingo halls dropped in the five months to May 31. Official sources indicate that more than 7,000 people are employed in the sector. Meanwhile, following a successful
B
tables and 300 bingo machines alongside a 155-room five-star hotel and spa, conference center and retail development. Sun International stated that the Monticello Grand Casino would form the cornerstone of its offshore strategy as it looks forward to inaugurating its new $105m (E77.9m) Ocean Club Casino in Panama City, Panama, in September.
REGULATION
Columbia releases slots timetable ColJuegos regulator has been quick to point fter passing new out the benefits. gaming regula“The information tions in 2010 that is going to be gathmandating the online ered at a central server control and monitoring of all slot machines, Columbia has finalised a timetable with all machines now required to be connected to a central server by September of next year. According to a report from daily newspaper La Republica, the four-year delay in implementing the legislation was due to local operators drag- is very important as up ging their feet owing to until now the casinos the expected $350m sector has reported its (E260.9m) total price operational results tag although the South made on an assumed American nation’s basis,” said Cristina COLUMBIA
ANALYSIS he regulatory system for casinos in Chile is fairly robust - modern and arguably the best designed legislative environment in Latin America. The tender process is clear and the independent regulator has the final say. However, there is clearly a tension in the system and the democratically elected local representatives want more influence - a matter that would have to be dealt with by national government. It’s unlikely ever to happen, as most tender processes have passed off without a hitch.
T
A
Arango, president of Coljuegos. “That is to say, the amount that has been destined for the health sector has depended
on the number of machines which are in operation independent from the money that is paid into them. By connecting them online,
we will professionalise the sector while increasing dependability and improving operational standards.” Arango stated that the delay was also due to the diverse nature of Columbia’s gaming market and disagreements over new technical requirements as the nation boasts upwards of 30,000 slots that were manufactured before 2004. “Colombia has different kinds of casino operators; some are operating in large cities but there are also large operations in very small towns,” said Arango. “Achieving the right balancing has not been easy.”
inaugural event in May, the Melincué Casino & Resort (pictured), in the central Argentinean city of Santa Fe, is planning to host its second Poker Festival on October 2-6. Set to coincide with the casino’s seventh anniversary, the Poker Festival will have a buy-in of ARS30,000 (E2,700). The first edition featured many of the country’s leading national and regional poker players, including Julio Belluscio, Cristian Rotondo, Ivan Luca, Andres Korn, Fernando Suaya, Jose Guevara, Marcelo Betbese, Lisandro Gallo and Eric Sullivan. In Mexico, construction has begun on a memorial dedicated to the 52 people who died in a fire at Casino Royale in the city Monterrey. On August 25, 2011, the casino was subject to an arson attack allegedly carried out by criminals in retaliation for the venue operator’s failure to pay an extortion fee. The attack was classified as the most violent and bloodiest in the history of Monterrey and of the whole state of Nuevo Leon. August 2014 casinoreview
| 23
Venetian Macao 18-20 November 2014
By Asia
for the world
For more information and to book your place at Asia’s ‘must attend’ gaming exhibition contact enquiry@MacaoGamingShow.com, visit MacaoGamingShow.com or telephone +853 6363 0080 or +852 6329 6008 PRC hotline: +86 180 6387 4408
www.macaugamingshow.com
MGS is back and even better! Now’s the time to book your attendance at MGS 2014 18th – 20th November. MGS is the only show that is truly representative of the Asian gaming industry. And the only event to earn the title ‘by Asia, for the World’.
Come and see the entire gaming industry Gaming Equipment & Accessories. Gaming Promoters & VIP Clubs. Casino Fixtures & Fittings. Promotional Services & Memorabilia. Food & Beverage. Entertainment & Performance.
MGS means business Exhibiting at MGS makes fantastic business sense. Reach out to casinos, integrated resorts, regulators and gaming affiliated businesses. 83% of MGS visitors are either decision makers or have direct input to purchasing decisions. An overwhelming majority (99%) said they would be returning to MGS in 2014.
Event Organiser
Supporting Organizations
Feature rich Visit the highly acclaimed Slot Experience Center. Gain invaluable knowledge at the Macao Gaming Summit. Promote your brands on MGSTV.
The best networking in Asia Invaluable business networking opportunities. Get to know potential business partners in a relaxed and casual atmosphere.
博彩監察協調局 Direcção de Inspecção e Coordenação de Jogos
Event Co-Organisers
And we will even help pay your way! The Macao SAR Government is once again offering attractive subsidies to qualified buyers from air fares to hotel accommodation, making MGS the key annual meeting hub for casino procurement teams. Event Contractor
CR142-p26-Comment_Coinslot NEW 13/08/2014 14:54 Page 1
Comment & Analysis
TO COMMENT EMAIL: JW@SJC.CO.UK
INDUSTRY GROWTH
Consolidation and convergence: the name of the game While the summer of 2014 will be remembered for the numerous high-profile acquisitions that took place among casino product suppliers, the period also witnessed a range of deals that underline the growing convergence between the land-based and online sectors, writes James Walker.
O
ver the past month, industry attention has focused squarely on numerous high-profile acquisitions: GTech announced plans to purchase IGT for a massive $6.4bn, Scientific Games will buy Bally Technologies for $5.1bn and WMS for $1.5bn and JCM Global entered into an agreement to acquire leading rival payment solutions group FutureLogic for an undisclosed sum. However, as the world’s leading gaming corporations bolster their core product lines (as in the case of FutureLogic) or shift their centre of gravity away from their tough domestic markets (GTech), the period also witnessed a range of deals that underline the growing convergence between the landbased and online sectors. Land-based casinos around
MEDIAWATCH
Irish betting shops are under scrutiny, Aristocrat positive on post-acquisition future and New York casino applicants to get their moment in the spotlight.
26 | casinoreview August 2014
I
the world are increasingly realising the benefits of - where legal - having a complementary online offering. And now, developers are ramping up their efforts to bring their popular brands online. As reported in this month’s International Casino Review, Austrian gaming group Amatic
rish betting shops have fallen foul of the national government for offering roulette style games under the pretext of betting, reports the Irish Examiner. Unlike roulette offered in venues which must hold gaming licences - where the tax rate is 23 percent bookmakers are only required to pay one percent betting duty. Betting shops had attempted to skirt the rules by requiring players to fill in slips before making a wager, but in the opinion of the country’s Revenue Commissioners, this does not change the status of the activity from gaming to betting. Those found to have offered this kind of game could find it difficult to apply for a new bookmakers’ license. “A bookmaker cannot offer ‘gaming’ in the form of roulette and conviction of an offence under the Gaming and Lotteries Act 1956 is one ground for the police authorities to refuse to issue a Certificate of Personal
Industries has partnered with SoftSwiss and ported 20 of its games online. Konami, meanwhile, has seen its China Shores title launched online through GameAccount Network, with more to follow by the end of the year. Of course, the flow of ideas between land-based and online
Fitness,” said a Revenue officer. Elsewhere, Austrialia’s Review Journal has been speaking to Aristocrat CEO Jamie Odell about the future of his company, following its acquisition of Video Gaming Technologies (VGT). The move forms part of a consolidation trend in the gaming market, which has seen Scientific Games purchase Bally and WMS, while Gtech s completed a deal to acquire IGT. The Journal notes that, once the deal is concluded, Aristocrat will generate 65 percent of its revenue from the American market. “We made a strategic business decision a few years ago to concentrate on our core games and focus on the US,” Odell said. “That effort seems to be paying off.” Discussing the VGT deal, Odell said: “It fits comfortably into our strategic initiatives and frankly, it’s running quite well at the moment. They have great leader-
gaming sectors goes both ways. Many developers have been leveraging the power of online IP and integrating licensed titles into their latest cabinets. GTech’s successful partnership with PopCap Games, which led to the highly successful Plants vs. Zombies and Zuma slots titles, is a prime example of how online brands can be brought to audiences in the land-based sector to great effect. The demand for players to engage in gaming across multiple platforms is fuelling the convergence between the landbased and online gaming sectors. And while the future shape of the industry is increasingly difficult to predict, it is clear that success will be in the hands of those land-based casinos and suppliers who embrace the growing online sector. ship and we see no reason to change anything. When you buy a great business, you have to be careful you don’t take away what made it great.” Aristocrat spent $1.3bn on the deal in July and saw its share price jump 10 percent in its wake. “What I like about this deal is that its not built on synergies or cost out,” said Odell. “It’s on a growth opportunity for us because the businesses are so complimentary.” Finally, the Times-Herald Record reports that the New York Gaming Facility Location Board has announced a schedule for applicants to present their plans for a casino in upstate New York. Each applicant will be allowed 45 minutes to outline their proposal, followed by 15 minutes of questions. The presentations are open to the public and will take place from 9am to 5pm on 8-9 September, 2014 at Meeting Room 6 of the Empire State Plaza.
www.patir.de info@patir.de
CR142-p28-33-Supplier_Coinslot NEW 13/08/2014 14:51 Page 1
Supplier
News
I
Italian lottery and gaming group GTech is to acquire US slots giant IGT for $6.4bn. James Walker reports on what is a substantial change in the line-up of the industry’s bighitters.
FUTURELOGIC / GTECH / IGT / JCM GLOBAL SUPPLIER NEWS: JW@SJC.CO.UK
MERGERS & ACQUISITIONS
TRANSACTION SYSTEMS
GTech to acquire IGT for $6.4bn
JCM portfolio grows with FutureLogic acquisition
talian lottery, slots and gaming systems group GTech has entered into a definitive merger agreement with International Game Technology (IGT), the Las Vegas-based casino products giant. GTech will pay $4.7bn (£2.7bn) in cash and shares for IGT and will also assume $1.7bn (£1bn) of the US group’s net debt. The $6.4bn (£3.7bn) total is above GTech’s own market capitalisation of $4.4bn ($2.6bn), and marks the largest foreign acquisition by an Italian company this year. Under the terms of the transaction, IGT and GTech will combine under a newly formed holding company organised in the UK, where corporation taxes are typically lower than both the US and Italy. The new firm will be listed on the New York Stock Exchange. IGT is one of the world’s leading casino products group. With a history stretching back to the 1950s, the group produces slot machines for gaming venues around the world and owns well-known licences such as Wheel of Fortune and Avatar. Over recent years, the company has increased its focus on casino systems and sophisticated linked jackpots, while also venturing into the online and social gaming sectors. Formerly
28 | casinoreview August 2014
known as Lottomatica Group, GTech has national lottery concessions in Italy and several state lottery concession in the US. It also sells gaming scratchcards, as well as providing lottery services to third parties in other nations. IGT will fit within GTech’s casino products division, Spielo, which has been producing quality slots under licence from Popcap, the social gaming arm of Electronic Arts. Its latest slot machine innovation, Sphinx 3D, utilises a 3D display with integrated eye-tracking technology. Analysts at Reuters news agency said that, with the purchase of IGT, GTech would derive more than half of its $4.1bn (£2.4bn) annual revenues from foreign operations. It currently makes 60 per cent of sales in the struggling Italian market. Over recent months, the world and particularly the US - casino industry has experienced a great deal of post-recession movement. Major manufacturers and suppliers are jostling for position in new markets and tapping new sectors through inorganic growth. Within the space of two months last year, the industry saw two similarly high-profile transactions: Bally Technologies purchased SHFL Entertainment for $1.3bn (£760m) and Scientific Games Group completed its $1.5bn (£875m) acquisition of WMS Gaming.
Acquisitions and mergers are de rigeur on the international gaming stage at the moment, with transactions technologies giant JCM taking its global tag very seriously with plans to draw FutureLogic into its operation. A very good fit indeed, the phrase “choice” is splashing its way across the company’s commentary: and we all know, the industry just loves greater choice.
ayment solutions group JCM Global has entered into a definitive agreement to acquire FutureLogic from American Capital for an undisclosed sum. The acquisition adds to JCM’s line of peripheral component products, including bill validators, printers and digital media. FutureLogic printers and couponing solutions, such as Ticket2Go, TableXchange and PromoNet systems products, provide key technology platforms for growth initiatives and recurring revenue. The products will strengthen and diversify JCM’s peripheral portfolio to the marketplaces and industries it serves globally, such as banking, gaming, kiosk, retail and transportation. In addition to the FutureLogic line of products, JCM will continue to market, sell, service and support the Nanoptix line of printers, including the award-winning PayCheck 4 thermal printer. “We are very pleased to add FutureLogic’s excellent line of printers and coupon solutions to the award-winning line of JCM’s peripheral products,” said JCM Global president Akiyoshi Isoi. “Since the beginning, JCM has operated with a philosophy of ‘customer first,’ and this acquisition will allow us to service our customers with more freedom of choice with unique and innovative peripheral solutions. “We are fortunate to be in this position to capitalize on opportunities, such as the acquisition of FutureLogic. By maintaining our focus on ‘best-in-class’ components and continual dialog with our key customers, JCM will continue to deliver value-added solutions that the marketplace desires” FutureLogic chief marketing officer John Edmunds added: “We look forward to the next phase of development for FutureLogic as it brings innovative technology and world class customers to help fuel the growth of JCM. The combination of JCM and FutureLogic product portfolios will provide a compelling offering in a variety of markets.”
P
Get your hands on prime real estate in Macao 2014 Venetian Macao • 18-20 November
For stand options and sponsorship opportunities at November’s Macao Gaming Show contact John Sullivan at MGS@gbmedia.eu or call +44 (0) 1204 396 397
CR142-p28-33-Supplier_Coinslot NEW 13/08/2014 14:51 Page 2
Supplier
News
MANAGEMENT
SEATING
Novomatic boss to stand down next month
Patir prepares for G2E
Franz Wohlfahrt will leave Novomatic at the end of September to be replaced by the current managing director of Austrian Gaming Industries, Harald Neumann.
P
ranz Wohlfahrt will stand down as general manager and CEO of integrated global gaming firm Novomatic Group at the end of September to be replaced by the current managing director of the firm’s Austrian Gaming Industries subsidiary, Harald Neumann. The 54-year-old Wohlfahrt has held the CEO and managing director posi-
F
tions at Novomatic since joining the Austrian firm in 2004. During that time he presided over the company’s late-June win of casino operating licences for new venues in Vienna and Lower Austria while also helping to negotiate the recent sale of the firm’s share in the largest casino operator in Chile for more than E100m.
skirchen-based Novomatic. “The Novomatic Group with Franz Wohlfahrt in the management team has grown steadily over the past decade and now represents a leading Austrian company, which will also have, thanks to the recent awarding of two casino licenses, an attractive home market.” For his part, the new man in charge, 52-year-old Neumann, began his career with telecommunications equipment firm Alcatel before moving in 2003 to take on a senior management post with the Austrian Federal Computing Centre. Under Wohlfahrt’s tute- ing Attorneys (IAGA) and In 2007, he transitioned to lage, Novomatic has grown the International Masters of the role of CEO for internaturnover from E1.06bn five Gaming Law (IMGL) will tional security company years ago to E1.68bn last continue to serve Novo- G4S before joining Novoyear, while annual profits matic as a consultant and matic in 2011. increased from E59m in co-partner of its superviAlso recently responsi2009 to E193m in 2012. The sory board. ble for the gaming firm’s company is now worth “Franz Wohlfahrt has international projects, approximately E3.5bn and made a significant contribu- Neumann will take the ranks alongside Red Bull tion and Professor Johann reins from October 1 and and Swarovski as one of the Graf has expressed his oversee an organisation top brands in Austria. The thanks and appreciation,” that now employs over member of the Interna- said Herbert Lugmayr, 20,000 people including tional Association of Gam- chairman of Gumpold- 3,000 in Austria.
atir Design, the globally active casino seating group, is set to round off another busy year of trade shows at G2E Las Vegas. The company, which is renowned for its wide range of quality seating solutions for slot machines, table games and non-gaming areas, has been promoting the benefits of its Cobra Gaminator chair. The sliding chair ensures players of all sizes can enjoy full comfort, while it also includes integrated surround sound-style speakers. The Cobra, along with Patir’s extensive range of casino seating, will be on display at G2E 2014.
INSTALLATIONS
Double Eagle welcomes latest Bally Technology he Double Eagle Hotel & Casino in Cripple Creek, Colorado is the first site to utilise the latest award-winning applications from games machine manufacturer Bally Technologies. Both the iView DM and EBS applications will be active across three-hundred video-game machines - an exciting prospect, says casino manager George Sisneros: ‘These products can provide a tremendous return-on-investment by
T
increasing play across the casino floor.” Bally’s iView DM is a multimedia package allowing operators to alter industry standard in-game display features such as positioning of player name, score, jackpot, and promotional credits, customising these items to a site-tailored specific. Elite Bonusing Scheme works side-by-side with iView DM, providing operators with the ability to provide marketing content
30 | casinoreview August 2014
floor-wide in real time, as well as allowing the personalisation of messages and in-game experience for individual, high-value players. Double Eagle Hotel & Casino has also selected Bally’s CoolSign mediamanagement solution, enabling them to showcase bonusing events, such as Virtual Racing, on digital media throughout the site. Bally Technologies seem excited at the chance to showcase their latest prod-
ucts: “We are confident that Double Eagle will gain a competitive advantage by using iView DM and EBS to provide superior customer service and innovative bonusing that keeps players coming back.” So says Robert Parente, Bally’s Senior Vice President of North American Sales, adding: “We are thrilled that Double Eagle Casino is becoming the first property in the state to use Bally’s Systems to directly engage players at the point of play.”
Bally completes record-breaking installation
CR142-p28-33-Supplier_Coinslot NEW 13/08/2014 15:47 Page 3
BALLY TECHNOLOGIES / BMM TESTLABS / GAMEACCOUNT NETWORK / KONAMI GAMING / NOVOMATIC GROUP / PATIR DESIGN SUPPLIER NEWS: JW@SJC.CO.UK
BALLY INSTALLATIONS BMM TESTLABS NEW OFFICE GAMEACCOUNT ONLINE GAME KONAMI GAME LAUNCH NOVOMATIC APPOINTMENT PATIR EXHIBITION
ONLINE GAMING
TESTING
GameAccount launches China Shores with Konami Gaming
BMM Testlabs relocate to Vienna
ameAccount Network has announced the launch of China Shores online in the US under its strategic partnership with Konami Gaming. Available on Foxwoods.com, China Shores offers players the experi-
G
Konami casino slot games locally deployed within the internet gaming system will join those available from Ainsworth, Incredible Technologies, Scientific Games, Reel Time Gaming, Gamomat and Multimedia Games to create one of the widest
system manages all customer registration, verification and banking and also offers a wide range of casino table games, integrated poker and diverse casino slot games offered for real money regulated internet gaming or virtual credits-based Simulated
L
ence of the original game translated online for Simulated Gaming. During the remainder of 2014, GameAccount will bring five additional Konami games online to complement China Shores. The company will also offer its GameStack internet gaming system to land-based casino operators utilising the Konami Synkros enterprise management system.
selections of Class III gaming content available online in Adobe Flash and mobile client applications coupled to GameAccount Network’s proprietary range of casino table games and multiplayer skill-based games. The company recently deployed GameStack in New Jersey’s newly-regulated internet gaming market. The internet gaming
Gaming via PC and Mac desktop personal computers and mobile devices. Compatibility with the exacting regulatory regimes of New Jersey, Spain, Italy and the UK have made the GameStack internet gaming system a worldclass regulated, certified and compliant solution for land-based casino operators seeking to move online.
B
and multiple fully configurable reserve pools so that players may compete for multiple real-time incrementing meters with just one wager. “The use of Game Manager 2 represents a significant enhancement from a player perspective,” said Roger Snow, Table and Utility Products Senior Vice President at Las Vegas-based Bally Technologies. “Previously, players made a progressive wager that tied to only one jackpot. Players can now win from multiple reserve pools, which elevates the gaming experience by increasing unpredictability and
introducing more ways to win across the gaming floor. “We’re extremely grateful for all of the hard work Mohegan Sun has done to ensure the success of this partnership. Progressive jackpots on table games not only bring increased excitement to the property but also can increase profitability for casinos.”
ally Technologies has partnered with Mohegan Sun in Uncasville, Connecticut, to install the largest single property table game progressive jackpot system in North America. The new Game Manager 2 software from Bally Technologies will be used to track progressive jackpots on 43 tables spread across Mohegan Sun’s Casino Of The Earth, Casino Of The Sky and Casino Of The World properties. Developed by SHFL Entertainment before its acquisition by Bally Technologies in November, Game Manager 2 facilitates multi-level jackpots
eading testing and technical consultants, BBM Testlabs, have relocated their Austrian testing facility to larger premises in Vienna. Previously based in Graz, an increase in labspace at the Vienna site has allowed BMM to take on a fresh influx of local technical staff. These numbers are set to grow in the coming months. The new facility will have a broader perspective than its European locale
suggests, with the centre able to benefit from the expertise of BMM’s International Resource Programme; Vienna providing an operational base for both full and part-time consultants specialising in markets outside of Europe. Founded in 1981, BMM is the industry’s oldest private independent gaming certification firm. Providing systems and network expertise in over 400 jurisdictions, and employing more than two-hundred
sales@hk1180.com
people across thirteen international sites. Kirk White, BMM’s executive vice president and general manager, is confident that the move represents an industry milestone. “BMM is setting a higher customer engagement and service delivery standard for testing laboratories around Europe. The increased lab space has enhanced our capabilities for supporting both existing and new customers.”
www.ltgame.com
August 2014 casinoreview
| 31
CR142-p28-33-Supplier_Coinslot NEW 13/08/2014 14:52 Page 4
Supplier
CRANE PAYMENT INNOVATIONS / NOVOMATIC GROUP OF COMPANIES / JCM / LT GAME
News SUPPLIER NEWS: JW@SJC.CO.UK
CRANE MACAO GAMING SHOW PREP NOVOMATIC VEGAS PORTFOLIO JCM SHOW PREVIEW LT GAME SPECIAL EVENT EXHIBITION PREVIEW
CASH MANAGEMENT
Novomatic Group expects big things at G2E 2014
CPI to exhibit at MGS 2014
Las Vegas show will represent the Austrian firm’s first public engagement since establishing Novomatic Americas subsidiary.
ntegrated global gaming firm Novomatic Group will be in Las Vegas next month for the Global Gaming Exhibition (G2E) 2014 to display ‘a myriad of new gaming attractions such as cabinets, games, game mixes, systems [and] jackpots’. Fresh from being granted two casino operating licences in its home country, the Austrian firm described G2E 2014 as a ‘must attend’ event and it intends to exhibit alongside ten of its subsidiaries covering international markets spread across North America, Europe, Asia, Africa and Latin America. Although it has exhibited its wares in Las Vegas before, G2E 2014 will represent the first since it established the Novomatic
I
Americas sales subsidiary and opened offices in Deerfield Beach, Florida, and East Dundee, Illinois. This division, which sees Rick Meitzler serving as sales vice-president, has been tasked with creating a product ranges for the American market and securing the necessary licensing and approvals. “G2E Las Vegas, as the major North American gaming show, is a traditionally important event for Novomatic Group and it is now of even more of significance for Novomatic Americas as it is the first big show presentation of our growing range of licensed products for the US/American markets,” said Jens Halle, managing director of Austrian Gaming
Industries and CEO at Novomatic Americas. “We have done our homework, listened closely to our customers’ needs and their guests’ wishes and are now in a ‘green light’ position to present an initial and growing US portfolio that also caters to special market requirements such as the Illinois VGT sector.” Novomatic Group’s booth will feature the CoolfireT II range presented in the Dominator cabinet complete with a wide selection of titles that are available individually or in the Super-V+ Gaminator, Premium-V+ Gaminator and Novo Linet mixes offering up to 28 individual games. Specifically for US markets, Novomatic Group will also feature the ActionGaminator featuring a mixture of games for the Illinois VGT market available in a
range of upright and slant-top cabinets. “On the international sales side, we’ve made sure to bring all this year’s novelties and innovations,” said Halle. “Our Latin American colleagues will join us, welcoming our customers and partners at the show. We will make sure that all questions are answered, all details explained, all special requirements discussed and that each and every guest receives our full attention and detailed product information.” Novomatic Group will additionally present a variety of mystery progressive jackpot themes for all of its platforms in Nevada such as the Magic Joker JackpotT and the hybrid Jewels FactoryT, which combines the best elements of community and progressive jackpots.
TRANSACTION TECHNOLOGY
SLOTS
JCM to take the helm at OIGA 2014
LT Game to hold interactive executive panel discussion
ransaction specialists JCM will demonstrate two of their most superior products at this month’s Oklahoma Indian Gaming Association (OIGA) Conference and Trade Show. The event, aimed at bringing Tribal Chiefs, casino managers, and gaming operators together, is set to welcome more than 2,500 attendees, and will see JCM showcase its iVizion® bank-note and ticket validator. With an acceptance rate of over 99 per cent, and utilizing whole-bill image capture technology, iVizion® represents the apex in current anticounterfeiting technology. Also featuring will be JCM’s
T
CM’s iVIZION validator, exhibiting at OIGA 2014
award-winning PayCheck 4™ thermal printer. Boasting the greatest speed and longevity of any printer in its class, PayCheck 4 prints a complete ticket in just over half a second, with an average life span of 640,000 slot-type tickets – double that of it’s nearest rival. ‘We have been very fortunate to work with Native American operators in all areas of the United States’, said JCM vice president of worldwide sales Mark Henderson, ahead of the event
32 | casinoreview August 2014
A
ward-winning gaming supplier LT Game, in conjunction with its parent company Paradise Entertainment, is to hold an interactive press-conference, where invited attendees will be able to join a panel discussion comprised of senior industry executives. The event, taking place at Hong Kong’s Conrad Hotel, will be chaired by Paradise chairman and managing director Jay Chun, who will also provide his own first-hand summary of the company s
latest developments. Listed on the main board of the Hong Kong Stock Exchange, Paradise Entertainment Ltd is principally involved in the development and sale of gaming equipment and casino management services. It’s subsidiary company, LT Game, recently won the Inside Asian Gaming’s
(IAG) 2014 Multi-Terminal Product award for its Live Table Multi Game System product. A company spokesperson described its upcoming conference as “a rare opportunity to network with Paradise top management and other top executives in the gaming industry.”
I
n an effort to underline the convenience OEMs and operators have in obtaining complete solutions from a single vendor, Crane Payment Innovations (CPI) will be heading to Macao later in the year to exhibit at the upcoming Macao Gaming Show (MGS). Graeme Lewis, CPI vice president in Asia Pacific, said the company will be bringing its comprehensive portfolio of cash management solutions to the show, which takes at the Venetian Macao on place on November 1820. “We are very much looking forward to appearing at this year’s MGS. It will provide us with the ideal stage from which to demonstrate how the robust CPI portfolio can serve such a growing marketplace while still raising the bar for value and performance expectations on an individual basis.” Lewis added that a combination of MEI’s SC Advance, Easitrax Soft Count and PPM Advance solutions will be on display, along with the CashCode SM BackLoad note acceptor and a range of Money Controls coin hoppers. CPI, a part of Crane Company, is formed from a combination of Crane Payment Solutions and MEI Conlux Holdings, and is a diversified manufacturer of highly engineered industrial products.
Whether your market is low stake high volume gaming, remote, land-based casinos, bingo, betting or amusements there’s only one publishing house that’s really connected. The publishing division of GB Media is responsible for the award winning titles International Casino Review, Betting Business interactive and Coinslot, as well as the official ICE catalogue. For a unique window on the world of gaming, simply contact us on +44 (0) 1204 396 397 or email us at jsullivan@gbmedia.eu.
icr
GBmedia
CR142-p28-33-Supplier_Coinslot NEW 13/08/2014 14:52 Page 5
Supplier
ARISTOCRAT / CASINO TECHNOLOGY / EURO GAMES TECHNOLOGY / GAMING LABORATORIES INTERNATIONAL
News
SUPPLIER NEWS: JW@SJC.CO.UK
ARISTOCRAT GAME PACKAGE CASINO TECHNOLOGY G2E PREVIEW EGT PANAMA INSTALLATION GLI LATIN AMERICAN UNIT MACHINE TESTING
INSTALLATIONS
GLI establishes special Latin American unit I
EGT enjoys Panama success
n hopes of better providing services to clients in Latin America, testing laboratory and technical consultancy Gaming Laboratories International (GLI) has established a dedicated Spanish-speaking support unit at its headquarters in Lakewood, New Jersey. The new Latin America Quality Assurance Department and Technical Compliance unit is to be headed by senior director Diana Golda and will focus on providing support for regu-
lators and suppliers based in Latin America and other Spanish-language jurisdictions. “There is a critical need for us as a company to deliver accurate and timely certifications and regulatory support for our Spanish-speaking clients in the region,” said Christine Gallo, technical compliance and quality assurance vice-president at GLI. “We have been strongly committed to the gaming and lottery industries in Latin America for nearly
two decades and we will always do everything we can to provide the values, qualities and services necessary for our clients to reduce risks and increase profitability. Establishing this new group fulfils on that promise.” Currently celebrating its 25th birthday, GLI stated that its Quality Assurance Department issues an average of 4,200 certifications each month while the new Spanish-speaking team is to be managed by long-time technical compliance staff
E member Maria Alessi. “GLI is so much more than just testing and with the creation of this quality assurance unit we prove once again we are prepared to respond to the needs of Spanish-speaking suppliers and regulators,” said Karen Sierra-Hughes, Latin American development director at GLI. “This unit is comprised of native Spanish-speaking personnel who speak the language and understand the culture and the needs of the region’s jurisdictions.”
• GLI has appointed Amanda Chan to serve as the general office manager for its Macau-based GLI Asia subsidiary. The long-time Macau resident and holder of a master’s degree in education sciences from the South China Normal University will now work closely with GLI Asia’s clients and senior engineering team to manage incoming submissions while additionally overseeing general office affairs.
MANAGEMENT SYSTEMS
GAME PACKAGES
Casino Technology readies for G2E
Aristocrat classics to go deluxe
C
ustralian games manufactur- bespoke appeal. ers Aristocrat Leisure have According to the company, the released the latest editions of ‘penny games’ have a high volatility two of its most successful Class III with Pompeii Legends Classic games to include an alteroffering a 25-line connate, deluxe experience, figuration, and Deluxe selectable from the same 25+15 configuration. cabinet. Wicked Winnings ClasAvailable in a dual packsic is configured Reel age, both Wicked WinPower 25+15, and nings Legends™ and the Deluxe version Pompeii Legends™ is new game called will feature the classic, Wicked Winnings IV unchanged and origiwhich is Reel Power nal, with the player able 25+35. to select an enhanced News of these latdeluxe version offering est games follows a increased frequency on from the July and volatility in the 2014 announcewinning experience. ment that AristoWhile the theme and crat were to buy core gameplay of the leading US supplier new edition will stay Video Gaming true to its forbearer, Te c h n o l o g i e s higher retrigger rates (VGT) for approxiand multipliers, as well mately $1.3bn as additional free (E970m), effecgames will ensure that tively tripling the the adapted edition value of its North offer’s it own exciting American business.
asino Technology have their sights set firmly on September’s G2E with the gaming and equipment specialists preparing to showcase a number of new games, alongside their new, combined casino management system. The Bulgarian company will be heading to Las Vegas on September 30-October 2 buoyed by a portfolio of new games, developed in conjunction with their US partners, Alto Games. The two firms, exhibiting in adjacent booths, will display the latest edition of the popular Gamopolis multi-game series, boasting extensively increased cabinet and content customisation. Also
appearing will be a new Aurora cabinet (pictured), and with it, a fresh theme; Peacock&Dragon , drawing upon the mystique and mythology of the ancient orient, and offering arresting, colourful graphics. Both booths will also provide hands-on experience of Casino Technology’s flagship cross-channel package, The Big Five . With functionality to transfer landbased operators to the mobile and online markets, The Big Five is a comprehensive management suite, overseeing all aspects of casino operation. Founded in 1999, Casino Technology has quickly established itself as a forerunner in the development and production of gaming units. It’s products are now in active distribution throughout more than fifty countries.
34 | casinoreview August 2014
A
uro Games Technology (EGT) has placed 40 of its new Premier P24/24 Up gaming machines in five of the most well recognised casinos in Panama, all owned by Codere one of the largest casino operators in Latin America. The operator equipped Crown Casino El Panama, Crown Casino Continental, Crown Casino Soloy in Panama City, and Crown Casino Nacional and Crown Casino Plaza Mirage located in David, Chiriqui Province, with eight of the contemporary P-24/24 Up video slot machines.
All cabinets are installed with the multigame Multi-3, which contains 39 attractive game headlines from the constantly growing videoslot library of EGT. The decision for the installation was made after the huge interest and success of the products from the Vega Vision+ series of which the operator installed in the prestigious Sheraton Crown Casino and Hotel in Panama, back in August 2013. The Premier P-24/24 Upright cabinet has bold and at the same time elegant design that makes it suitable for every casino environment. The slim LED illumination alongside the cabinet sets it apart, while the two 22inch displays provide the necessary comfort for enjoying one of the 39 classic and brand new game titles from the Multi-3 multigame. “The interest in the new Premier P-24/24 Up is huge and the fact that we made five installations for a solid and well-known operator like Codere - speaks of how well we do on the local market,” said Nadia Popova, director of EGT’s Panama operations.
If you’re searching for the very best journalism, the widest distribution and inventive advertising opportunities, International Casino Review is your partner of choice. For more information on how we can help you deliver your message to the global casino industry community, simply contact John Sullivan at jsullivan@gbmedia.eu to receive your media pack or call us on +44 (0) 1204 396 397.
icr
CR142-p36-b2bListings_Coinslot NEW 13/08/2014 14:56 Page 1
Listings
EVENTS / LEGAL / ONLINE GAMING / SECURITY / TABLE GAMES / TESTING
Business2Business
LISTINGS
Video surveillance products and solutions firm Dallmeier will be serving beer and sausages as it shows off its Panomera innovation.
SUPPLIER NEWS: JW@SJC.CO.UK
SECURITY
Dallmeier bringing Oktoberfest to Essen
I LEGAL MGT Gaming settles WMS lawsuit
S
ocial and real-money online gaming website operator MGT Gaming Incorporated has agreed to terminate its patent infringement case against WMS Gaming and now intends to ‘focus its resources and litigation efforts’ against Aruze Gaming America Incorporated. The subsidiary of MGT Capital Investments is currently involved in a lawsuit in the United States District Court for the Southern District of Mississippi alleging that Aruze Gaming’s Paradise Fishing and Amazon Fishing games infringe its patents.
TESTING GSA to organise European workshop
T
he Gaming Standards Association (GSA) will hold a two-day workshop in London on September 16-17 to facilitate collaboration between the gaming industry and policy domain leaders. Participants will hear updates about GSA’s Online Gaming Committee (OGC)
n honour of its 30th birthday, Dallmeier will be bringing a bit of Oktoberfest to the Security Essen trade show in Germany from September 23 to 26. Dallmeier is to promote its patented Panomera multi-focal sensor technology live at the Messe Essen inside a special truck that will also offer visitors the chance to sample typical German sausages such as Weisswurst and Regensburger Knacker alongside fresh pretzels and Weltenburger beer. “At the trade show we will be focussing on using the multi-focal sensor technology to show practi-
work and draft standard, listen to regulators and discuss together the role GSA standards can play in the online gaming space. An abbreviated example of the online gaming standard will be distributed exclusively to attendees. “This workshop is a critically important event as we discuss and debate the current situation and the future of iGaming in Europe from a technical standards perspective,” said GSA president, Peter DeRaedt.
ONLINE GAMING Bistars adds Amatic landbased games
B
itstars.net, the SoftSwiss licensed online casino, has released 20 new games from Amatic Industries. Bitstars players can now enjoy the games that they were used to playing in their land-based casinos and choose to play them online for the very first time with a bitcoin casino.
EVENTS Quixant makes OIGA debut
S
lot machine computer platform designer and manufacturer Quixant has made its inaugural appearance at the
36 | casinoreview August 2014
cal and economical solutions for applications for which no solutions at all could have been found in the past with conventional engineering,” said Dieter Dallmeier. Panomera has been developed especially for mid-size commercial and industrial applications and, unlike single-sensor cameras, is ideal for comprehensive surveillance of expansive areas. It supplies guaranteed minimum constant 125 pix/m resolution and makes it possible to monitor large areas and distances from a single location in real time with higher dynamics and full depth of focus.
Oklahoma Indian Gaming Association (OIGA) trade show to exhibit its QX50 innovation. Based on the footprint of its flagship QX40, the QX-50 is capable of driving ultra high-definition 4K displays and utilises the next-generation R-Series Bald Eagle chipset from AMD for improved graphical performance.
TABLE GAMES Shift Interactive inks MGM deal
S
hift Interactive, which is a division of Suzo-Happ Group, has signed a multiyear agreement that will see it provide giant American casino operator MGM Resorts International with its innovative InteractivePro Table. An initial batch of 20 InteractivePro Table units were recently installed at two of Las Vegas’ landmark casinos, MGM Grand and The Mirage, and Shift Interactive is to additionally supply ongoing support services.
TRANSFORM
TRENDS INTO
TARGETED GROWTH Get the complete com m p l e t e over overview at G2E
NETWORKING, EDUCATION AND BUSINESS INSIGHT.
4&15&.#&3 0$50#&3 t 5)& 4"/%4 &910 "/% $0/7&/5*0/ $&/5&3 t -"4 7&("4 /&7"%" SEPTEMBER 29: iGAMING CONGRESS, SECURITY & SURVEILLANCE INSTITUTE, G2E 101, THE HOTEL CONFERENCE AT G2E, AND MORE!
$0.& &91&3*&/$& 5)& %*''&3&/$& :06 "4,&% '03 "/% (&5 5)& */4*()5 :06 /&&% 50 8*/ */ 5)& ."3,&5 New interactive and technologically dynamic seminars. More industry experts covering the most critical issues. An even bigger show floor filled with everything gaming and non-gaming. And, introducing, The Hotel Show. Register now: globalgamingexpo.com/ad
POWERED BY
CR142-p38-40-Business_Coinslot NEW 13/08/2014 14:57 Page 1
Business
& City News
FITCH RATINGS
MELCO CROWN
Just who does hold the key to recovery in the US land based casino industry?
W
ell, it’s certainly not the new generation of casino player, according to the latest sector report from economic analysts Fitch Ratings. Interpreting the data makes for very sober reading within the American casino community, particularly so with the Public Gaming Research Institute going so far as to say that ‘the young seem to be missing the gambling gene completely’. That said, the search for new players is being intensely pursued at present, and if there is any industry capable of proving analysis wrong on the casino floor it’s definitely the US. The report confirms that to date, most US states now have some form of casino-based gambling, with supply comfortably meeting demand. With stagnant wage growth and the poorest job-market for generations, Fitch believes that young players may have re-prioritised their concept of disposable income. Along with financial instability, young Americans are saturated in other sensoryintense forms of entertainment: video games, and alongside them, social gaming, their own
free-to-play gambling equivalents. The Fitch study reasons that the two together play their own meaningful role in impacting regional US casino operations. But the buck doesn’t entirely rest with the young. Middle-aged players are increasingly facing high personal debt, and the prospect of questionable financial security in retirement. Even the core of the regional industry’s current player-base, the baby-boomers, may well be tightening their purse-strings in times to come; suffering the effects of low-interest rates in the short-term, and the solvency of social security funding in the long. How can the industry respond? By recognising the trends young casino-goers are showing, advise Fitch. With young players displaying preference for lottery as well as tablebased games, increased consolidation with the suppliers of these products, along with increased participation within the field of social gaming, would both be prudent measures to ensure a healthier outlook of profit in the years to come.
Picture credit: Antoine Taveneaux
38 | casinoreview August 2014
Melco’s City of Dreams Resort, Macau, China
MCE’s quarter fortunes dip, but long term prospects remain strong Melco Crown are never ones to rest on their laurels. The latest figures may show a small decrease in revenues, but the company’s aspirations remain as high as ever. With one eye on a stock-repurchasing programme, development is never far from the Melco schedule. elco Crown Entertainment, the gambling and gaming arm of Hong Kong’s Melco conglomerate, has published it’s second quarter results for 2014, recording a slight fall in both year-on-year revenue and profit. MCE, who operate the Altira and City of Dreams casino resorts in Macau, as well as the city’s chain of Mocha gaming venues, posted net revenue of $1.2bn (E900m), down 7 per cent over the equivalent period in 2013. Net income was $143.6m (E107.2m), down from second-quarter profits last year of $181m (E135.2m). The contractions were
M
attributable to reduced rollingchip volumes, rolling-chip win rates, as well as ongoing noncontrolled interests associated with the development of the corporation’s City of Dreams resort in Manilla, Philippines, and it’s Studio City complex in Macau. The results were off-set by a large increase in the firm’s mass-market table game business. MCE’s City of Dreams Macau resort saw table-game revenue rise 38 per cent; the fruits of an extended room optimisation process aimed at improving accessibility and appeal of mass-market games and amenities.
Complimenting the the company’s standing dividend policy, it’s board of directors have announced a $500m (E373.4m) stock-repurchasing programme, which it hopes will provide increased flexibility in the development of it’s current and upcoming facilities. Chief executive of Melco Crown Entertainment Lawrence Ho is adamant that Macau’s central position within Asia’s gaming industry is secure: “With ongoing support from local and mainland Chinese governments we expect Macau to continue to evolve into the leading gaming destination in Asia.”
CR142-p38-40-Business_Coinslot NEW 13/08/2014 14:57 Page 2
ENTERTAINMENT GAMING ASIA / FITCH RATINGS / IGT / MELCO CROWN / WYNN RESORTS YXYXYXY BUSINESS NEWS: JW@SJC.CO.UK
WYNN RESORTS
IGT
Wynn achieves quarterly record in Las Vegas
Mixed third quarter results for IGT
he second quarter Wynn Palace in Macau aims to financial results for reinforce the Chinese hotel and casino operacontribution to revenues tor Wynn Resorts show a 5.9 per cent increase in year-onyear net revenues to $1.41bn (E1.05bn), aided by a record in it’s Las Vegas property revenues, as well as continued growth in the Macau operations. Wynn recorded secondquarter adjusted property earnings before interest, depreciation, taxes and amortisation of $467.4m (E348.2m), representing a 9.8 per cent rise year-onyear, with a healthy improvement in net income of 57.1 per cent to $203.9m (E129.8m). impressive growth of 40.7 per The casino giant claimed cent in year on year performadjusted quarterly net income ance. of $215.1m (E160.25m), an First-quarter net income
T
enue. However, Wynn attributes the quarter growth to an encouraging domestic recovery, with Las Vegas revenue up 12.5 per cent to $451.4m (E336.25m), aided by adjusted property earnings of $160.4m (E119.48m), a quarterly record. A 3.2 per cent rise in net income from the Wynn Macau Resort was also recorded, totalling $960.6m (E715.56). Wynn continues to invest in the construction of the Wynn Palace venue in Macau, it’s latest hotel, casino and spa resort scheduled for opening in early 2016. Second quarter investresults had shown impressive ment in this latest venture improvement of the Las Vegas totalled $249.7m (E186m), firm’s Macau operations and a bringing total investment thus small decline in it’s Nevada rev- far to $1.1bn (E820m).
ENTERTAINMENT GAMING ASIA
EGA’s quarterly balance sheet improves
E
ntertainment Gaming Asia (EGA), the Asiafocused casino operator and slots distributor, has reported a more than doubling of net income from continuing operations in the second quarter of fiscal 2014, due primarily to stronger performance in the company’s gaming operations in the Philippines. In the three months to June 30, revenues for EGA totalled $4.9m, down five per cent on the $5m posted in the prioryear period, due to a decline in gaming operations revenue. ECA’s operational struggles were partially offset by a two-fold increase in revenue from the group’s gaming products division to $524,000. Net income from continuing operations totalled $217,000, compared with $92,000 in the second quarter of 2013. The increase in net income from continuing operations
Dreamworld Poipet
was primarily the result of higher gross profit from the company’s Philippines gaming operations and foreign currency gains in other markets. ECA ceased operations of its beleaguered Dreamworld Pailin casino in Cambodia on June 1, 2014. The facility, which opened on Cambodia’s
northwest border with Thailand in May 2012, had struggled with declining revenue throughout 2013. Average consolidated daily net win per unit in the group’s remaining casinos was $112, a decrease of 17 per cent compared to $135 in the second quarter of 2013. The decline was primarily due to Naga-
World in the Cambodian capital, Phnom Penh, which experienced higher jackpots in the second quarter of 2014. Commenting on the results, Clarence Chung, chairman and chief executive officer of Entertainment Gaming Asia, said: “The decrease in gaming operations revenue for the second quarter of 2014 was largely due to the decline in revenue from NagaWorld. “While player traffic levels have improved significantly from the first quarter of 2014, we experienced increased player jackpots in the second quarter, which dampened overall net win performance. The decline was partially offset by improved revenue from Dreamworld Poipet, which experienced volatility in the quarter due to the political unrest in Thailand but continued to make progress in improving the quality of its customer base.”
eading operational and manufacturing firm International Gaming Technology have released their third-quarter financial results, detailing a marked drop in net year-on-year revenue, but substantial growth in GAAP earnings-per-share, and in social gaming revenue. The company, recently engaged in an acquisition by Italian company GTech, saw quarterly net revenue at $468m (E348.7m), down 19 per cent on 2013, but social gaming showed a annual increase of 17 per cent, totalling $72m (E53.7m). Meanwhile, earnings-per-share grew 16 per cent to $0.28 (E0.21). One of the world’s foremost manufacturers of gaming machines, IGT have spread their wings of late, notably within the interactive setting. In 2012, it acquired Seattle-based DoubleDown Interactive, and continues to cater to over 6m active players every month within the social sector. In this most recent quarter, the firm recorded a decrease in operations revenue of 12 percent to $218m (E162.5m), with average daily revenue per unit down a further 4 per cent, at $46.02 (E34.30). The most significant fall was in product sales, which were down 36 per cent, at $167m (E124.4m). This result was attributed to lower machine unit volumes and a significant decrease in orders of replacement units across North America. Additionally, average sales price per unit was down 11 per cent to $11,900 (E8,869), reflecting a broader international trend attributed to an increase in volume of lease unit conversions. In contrast, social gaming revenues enjoyed an annual year-on-year quarterly increase of 17 per cent, having generated $205m (E152.8m) across the year thus far. The number of daily active users also grew by 8 per cent to 1.8m, with an average daily booking per user of $0.43 (E0.32), representing an increase of 7 per cent against the previous year. Chief executive officer Patti Hart acknowledged “a challenging industry environment”, but praised the “continuing improvement in our business, evidenced by expanded gross margins and expected earnings per share performance.”
L
August 2014 casinoreview
| 39
CR142-p38-40-Business_Coinslot NEW 13/08/2014 14:58 Page 3
Business
BOYD GAMING / JCM / KONAMI CORP / OLYMPIC ENTERTAINMENT GROUP / TABCORP HOLDINGS /
& City News
BUSINESS NEWS: JW@SJC.CO.UK
OLYMPIC ENTERTAINMENT GROUP
Olympic Entertainment reports improved half-year results astern European casino operator Olympic Entertainment Group has released its consolidated unaudited financial results for the six months to the end of June showing a 7.1 percent increase yearon-year in total revenues to $96.4m (E72.2m). Olympic Entertainment is responsible for casinos in Poland, Slovakia, Belarus and Italy and announced that overall earnings had risen by 12.6 percent since the initial six months of 2012 while its most recent halfyear net profit stood at $13.7m (E10.3m), which represented a rise of 6.1 percent yearon-year. Also very active in the Baltic nations of
E
Lithuania, Latvia and Estonia, Olympic Entertainment reported that its most recent half-year earnings before interest, tax, depreciation and amortisation came in at $22.3m (E16.7m), which was static when compared to the same period in 2013 and down by 3.4 percent in relation to 2012. Latvia was Olympic Entertainment’s largest market over the first six months of 2014 with its $28.8m (E21.6m) in total sales representing an increase of 31.7 percent year-on-year. This was followed by Estonia although revenues dropped by almost one percent to $21.6m (E16.2m) while sales in Poland fell 10.1 percent to $16.1m (E12.1m). Another big loser for Olympic Entertain-
ment was Belarus where revenues decreased by 23 percent when compared with the same six-month period in 2013 to $1.2m (E966,000) although this was more than made up for by Lithuania where sales improved by 6.7 percent to reach $14.2m (E10.7m). April saw Olympic Entertainment increase its holding in Italy’s The Box Srl, which is the firm behind video lottery terminal operator Slottery Srl, to 70 percent and this move proved profitable with half-year sales from this market rising by 40.2 percent year-on-year to $3.2m (E2.4m) while elsewhere business from operations in Slovakia remained relatively static at $10.2m (E7.7m).
KONAMI CORP/JCM
M
40 | casinoreview August 2014
Boyd Gaming quarterly results ‘below expectations’
A
Konami stock grows as Nikkei reaches six month peak onday August 4th saw Japan’s Nikkei Stock Average climb to its highest point in over six months, delivering a welcome filip to the city standing of both Konami Corp and Japan Cash Machine Company. By midday break, the benchmark Nikkei was up 0.5 per cent, standing at 15,530.29, its highest level since January 23rd. Although this recent burgeoning is still overshadowed by the astonishing growth Tokyo witnessed in the first two quarters of 2013, when the Nikkei swelled by a record-breaking 57 per cent, the shift - seismic in proportion given the state ifthe market - has delivered some good tidings for casino stakeholders. A Nikkei report suggesting Japan could well see its first casino open prior to the 2020 Tokyo Olympics no doubt aided the position of Konami, who have demonstrated an operational interest in the prospect. The firm saw increases of 1.9 per cent, whilst Japan Cash Machine, producers of coin-counting machinery for the casino sector, saw their own jump of 5.3 per cent. Meanwhile, Universal Entertainment Corp, manufacturer’s of Japan’s home-grown Pachinko machine, saw a 2.5 per cent rise.
BOYD GAMING
Tabcorp Chief Executive Office, David Attenborough
TABCORP HOLDINGS
Continued expansion for Australian conglomerate Tabcorp abcorp Holdings have published their full-year financial results, posting a statutory post-tax net profit of $129.9m (E97.15m). The Australian gaming, wagering and Keno operator has recently diversified its portfolio, creating it’s gaming services branch, TGS, as well as acquiring Australian Capital Territory’s betting and gaming agency, ACTTAB. Tabcorp chief executive David Attenborough understandably welcomed the figures, stating “the group’s performance in 2014 demonstrates the benefits of being diversified across four businesses.” Tabcorp’s wagering arm saw year-onyear revenue increase by 1.8 per cent,
T
whilst it’s media division, which operates the brands Sky Racing and Sky Sports Radio, saw growth of 6.2 per cent, despite structural changes incurring one-off costs. In it’s second year of operation, TGS saw operational expansion from Victoria into New South Wales, and with it, revenue of $98.1m (E73.37m), an increase of 13.7 per cent on it’s initial posting. The only negative result was the firm’s Keno operations, which saw a fall of 0.7 per cent, to $203.9m (E152.5m). Accordingly, Tabcorp’s priorities for next year lie in the expansion of it’s Keno product line, as well as the pooling of Keno jackpots between it’s Victoria and New South Wales venues.
merican hotel and casino operator Boyd Gaming Corporation has released its financial results for the second quarter of 2014 showing a just over two percent decline year-on-year in net revenues to $722.5m (E541.3m). Las Vegas-based Boyd Gaming revealed that total adjusted earnings before interest, tax, depreciation and amortisation for the three months to June 30 hit $160.6m (E120.3m), which represented a rise of $400,000 (E299,646) when compared with the same period in 2013 and included a benefit of $11.8m ($8.8m) related to the recent tax settlement between the city of Atlantic City and the Borgata Hotel Casino and Spa. “Our second quarter results were below expectations principally due to continued weakness in casual play,” said Keith Smith, president and CEO of Boyd Gaming. “We are actively addressing this on several fronts including strengthening our senior management team, refining our marketing strategies and repositioning targeted non-gaming amenities. We also continue to strengthen our balance sheet and are on track for $200m (E149.8m) in additional debt reduction in 2014. Despite a tough operating environment, we remain diligently focused on improving our performance and generating long-term growth.”
EXCEPTIONAL
INVESTMENT OPPORTUNITY
TO PURCHASE CASINO AND/OR HOTEL
WHAT?
LUXURY HOTEL – 168 BEDROOMS SPREAD OVER17 FLOORS
3,600 SQM CASINO FLOOR
BRAND NEW BUILD
LUXURY FIT OUT
PART OF INTEGRATED MULTI-USE COMPLEX ALSO COMPRISING SHOPPING MALL/RESIDENTIAL & FOOD COURT
WHERE?
WELL-KNOWN LEISURE DESTINATION
GROWTH CITY A MAJOR EMPHASIS ON LEISURE AND TOURISM IN THE GOVERNMENT PLAN
WHY? FAVOURABLE TERMS FOR NEW INVESTORS
TAX DEROGATIONS UNIQUE OPPORTUNITY TO DELIVER FIRST MOVER ADVANTAGE IN A RAPIDLY EXPANDING VIBRANT CITY
WHEN? CASINO COMPLETION DATE SEPTEMBER 2014
HOTEL COMPLETION DATE MARCH 2015
HOW? APPLY IN CONFIDENCE FOR A PROSPECTUS AND FURTHER INFORMATION TO JSULLIVAN@GBMEDIA.EU
CR142-p42-Sectors_Coinslot NEW 13/08/2014 14:59 Page 1
Sectors
ONLINE GAMING / REGULATION / REMOTE LICENCE / STUDY
& Services
ONLINE POKER
SUPPLIER NEWS: JW@SJC.CO.UK
Nevada tentatively approves online poker pooling
LISTINGS
Three-member agency endorses technology from 888 that will see Caesar’s Interactive Entertainment and Treasure Island pool their separate player liquidities.
T
he Nevada Gaming Control Board has tentatively approved a gaming system that allows online poker websites operated by multiple casinos to pool their separate player liquidities. The initial approval of inter-operator networks by the three-member Board will now see the matter considered by the Nevada Gaming Commission with final approvals expected within the next few weeks.
ONLINE GAMBLING Hungary expands online gambling ‘blacklist’
A
fter allegedly targeting players in Hungary without official authorisation, a number of high-profile online gambling operators including Unibet, Betclic Everest, Ladbrokes and bwin have had their names added to an official ‘blacklist’. The move by the Hungarian Gambling Supervision Department, which is a division of the nation’s National Tax and Customs Administration, began in mid-June .
REGULATION EC releases online gambling recommendations
I
n order to help member states institute effective regulations as they legalise online gambling, the European Commission has released a series of recommenda-
Parx Casino selects GameAccount for simulated gaming website The Park Casino, Bensalem, PA, United States
42 | casinoreview August 2014
P
arxCasino has worked with to launch a new simulated gaming experience. The Parx Casino, located in Bensalem, Pennsylvania, and operated by Greenwood Entertainment Racing Inc, is the state’s leading casino property, with a 30 per cent share of Pennsylvania’s eastern regional gambling revenue. The US social casino market has an estimated annual
The technology from online operator and developer 888 Holdings would be the first of its kind approved in the western state and connect sites run by Caesars Interactive Entertainment Incorporated and Treasure Island. The provisional approval comes only months after Nevada Governor Brian Sandoval inked a deal with Delaware counterpart Jack Markell that allows players in both states to compete against each other over a shared platform in games of online poker. “888 welcomes the Nevada Gaming Control Board’s unanimous recom-
mendation today to approve the introduction of interactive poker networks to Nevada’s gaming landscape,” said 888 attorney Yehoshua Shohat Gurtler. “This represents a natural next step in the growth of Internet gaming in Nevada and it will allow operators to offer players a more attractive and diverse offering at a lower cost. “This also ties in with the emergence of interstate liquidity sharing, [which is] a trend we hope will eventually expand from Nevada and Delaware to include additional jurisdictions.”
tions focused on consumer protections and ethical business practices. The advice particularly focuses on high levels of security for customers and minors through the integration of strong ethical advertising and responsible sponsorship principles. Additional recommendations include basic information requirements for websites, uniform account registration processes, player tracking requirements, the availability of online support and socially responsible and transparent advertising and sponsorship agreements.
The licence, which forms part of a condition enacted by legislation and due on stream in October 2014, will require all operators providing UK players with remote gambling services to acquire one of the new British licences.
REMOTE LICENCE Realistic Games ahead of the curve with remote legislation
R
ealistic Games,provider of slot and table games as well as cross-channel content, have become one of the first industry suppliers to be granted a Remote Gambling Software Operating Licence, by the UK Gambling Commission.
worth of $1bn, with simulated gaming enabling land-based US casinos to tap into these potentially lucrative online revenue-streams. This latest partnership represents a further validation of the GameAccount business model; creating simulated gaming portals ahead of the regulation of online, realmoney gaming, within select US states. Dermot Smurfit, CEO of
STUDY AGA investigates industry impact
B
olstering its ongoing Get To Know Gaming campaign, the American Gaming Association (AGA) is to use the upcoming G2E show to release the findings of its ground-breaking study investigating the far-reaching affects the gaming industry has on American society. “Traditionally, our industry has spoken of its impact in terms of gross gaming revenues and the jobs within commercially-owned properties,” said Geoff Freeman, CEO for the AGA. “But this approach only scratches the surface of our contributions. The gaming industry supports jobs in retail, lodging, manufacturing, high technology and mathematics and this is the story that the AGA seeks to share.”
GameAccount Network, commented: “2014 saw the launch of Simulated Gaming in the United States. We are delighted to have been chosen as the iGaming platform provider by one of the leading management teams in the US casino industry.” John Dixon, chief technical officer of Greenwood Entertainment, was impressed by GameAccount’s previous successes: “GameAccount
has demonstrated its regulated gaming capability in New Jersey.” Said Dixon, adding: “By deploying their system on-property, Parx Casino will be well prepared in the event that regulation of real money internet gaming emerges in Pennsylvania.” The new Parx iGaming website is expected to go online by the fourth quarter of 2014, subject to customary approvals.
arena berlin 21 - 23 / 10 / 2014
52
.4
97 44
63
째n ,1
3.
45
39 71
1째
fre e
e
to
th
in
k
|t
o
ex
pl or
e
|t o
m
ee
t|
to
en
ga ge
do m
Excellence in iGaming
eigexpo.com www.eigexpo.com
WHY INTERNATIONAL CASINO REVIEW IS THE INDUSTRY’S MEDIA PARTNER OF CHOICE! B
C
A
THE BEST WAY TO REACH OPERATORS A
C
Operators
Regulators/Government/Law
84.2%
2%
Global Circulation
Readership breakdown by sector
16,844
B
13.8% Suppliers
A READERSHIP OF INFLUENCERS AND DECISION MAKERS A
C
C-Levels (chairman, president, CEO, partners)
Senior management (Operational managers, sales/ marketing/PR managers…)
30.1%
C
D
A
20.4%
B
D
Managing directors/ general managers
Others (senior game designers, financial directors…)
46.6%
B
USA/CANADA/CARIBBEAN
2,004 11.9%
Readership breakdown by job title
2.9% B
C
D
A
INCREASING CROSS CHANNEL READERSHIP A
C
Land based casino
2.5% Lottery
B
D
Slot halls/Street gaming
Online/Mobile
62.9% Readership breakdown by type of gaming
PRINT 4,061
16%
18.6%
When the Government of the Autonomous Republic of Ajara wanted to launch it’s gambling tourism vision for the Black Sea resort of Batumi, it immediately turned to Casino Review appointing it as the exclusive media partner. The integrated above and below the line campaign run only through Casino Review exceeded expectations and resulted in 120 investors from 25 countries traveling to Batumi The EXCLUSIVE European media partner for the Association of Gamto do business. ing Equipment Manufacturers (AGEM) and the Official Publication of If you want more information on how International Casino Review the European Casino Association (ECA), the magazine is also used can work with you to help achieve your commercial objectives simby Reed Exhibitions to promote G2E Las Vegas and G2E Macau; ply contact Publisher John Sullivan at jsullivan@gbmedia.eu Monografie S.A to promote SAGSE Buenos Aires and by Clarion Events in support of its flagship London event, ICE Totally Gaming and EiG, Barcelona. With such an extensive, worldwide distribution coupled with award winning production and content it’s no surprise that International Casino Review is the preferred media partner for so many leading industry associations, b2b events and commercial organisations throughout the world.
On average, each print copy of International Casino Review is read by
4.13
GLOBAL COVERAGE
readers
WESTERN EUROPE
10,072 59.8%
CENTRAL & EASTERN EUROPE
1,769 10.5% ASIA PACIFIC
1,465 8.7% MIDDLE EAST/AFRICA/SOUTH AFRICA
539
3.2%
CENTRAL & SOUTH AMERICA
995
5.9%
CIRCULATION BREAKDOWN DIGITAL 12,783
CR142-p46-47-Events_Coinslot NEW 13/08/2014 15:03 Page 1
Events
& Diary
MACAO GAMING SHOW
EIG
Launch-Pad Macao Gaming Show to feature bigger and better returning for EiG 2014 Slot Experience Center Electronic gaming machine manufacturers from around the world will have their latest innovations test driven at November’s Macao Gaming Show.
T
David So
46 | casinoreview August 2014
he 13th edition of the European iGaming (EiG) Conference and Expo is set to hit Berlin in October with the international event again featuring the LaunchPad competition for new enterprises alongside the novel Start-Up Village and Meeting Zone. Scheduled to take place at the Arena Berlin from October 21-23, EiG 2014 will host the seventh edition of the Launch-Pad competition for start-ups where five hopefuls will get to pitch their business propositions to a panel of industry experts and investors in addition to a room of iGaming executives. There will also be the Start-Up Village and Meeting Zone, which last year saw 14 companies sited around a central meeting area for those that wanted to explore the market’s newest solutions. “EiG remains the space of choice for iGaming professionals throughout the world,” said Kate Chambers from show organiser Clarion Events. “Business is evolving and our new home at the uber-cool Arena Berlin, one of the city’s most creative spaces, is giving us the freedom to explore fresh ideas and approaches as well as hosting all the digital trend-setters, the start-ups, leading gaming investors, regulators and international gaming operators at a single event. We’re also inviting free thinkers from outside the industry to join us in delivering knowledge, innovation, creativity and networking at what promises to be a liberating and thought provoking event.”
T
he upcoming Macao Gaming Show, which will take place from November 18-20 at the Venetian Macao, is set to become one of the world’s most influential test beds for electronic gaming machine manufacturers courtesy of an even bigger and better Slot Experience Center. Visitors will be able to test drive the latest machines at the Slot Experience Center and provide crucial feedback to participating manufacturers. In addition, games are to be evaluated by players and a panel of senior level slot experts across a number of criteria including themes, graphics, sounds and overall enjoyment with the top performers receiving awards. Last year’s Macao Gaming Show saw Titanic from Bally Technologies sweep the Slot Experience Center boards after recording the highest number of votes for the Best Music and Audio, Best Game Theme, Best Users Experience and Best Game Graphics prizes. “The Slot Experience
Center was an idea created by the Macao Gaming Show to help electronic gaming machine manufacturers receive important feedback from slot players,” said David So, manager of the Slot Experience Center. “In 2013, 877 professional and general players voted on the 40 models that were installed by the world s major electronic gaming machine manufactures, all of whom received valuable feedback that was fed back into their research and development teams. Our plan is to grow this popular feature with more machines and more game styles and to introduce new voting categories in order to more accurately reflect the diversity of today s electronic gaming machine sector. We are also inviting senior level slot experts from major casino operators to form an industry review panel in order to provide professional feedback.” The first large-scale gaming and entertainment exhibition organised and operated by
Macao organisations and supported by local government, this year’s Macao Gaming Show will cover over 10,000 square metres of floor space and welcome exhibitors and buyers from every corner of the world. The event covers six gaming industry segments, namely gaming equipment and accessories, promoters and VIP clubs, casino fixtures and fittings, promotional services and memorabilia, food and beverages and entertainment and performance. November’s Macao Gaming Show will also feature the high-level Asian Gaming: Looking Beyond The Horizon summit complete with a lineup consisting of many of the continent’s leading industry authorities. This event is to cover a range of essential topics including the Asia-Pacific regulatory environment, the future of gaming in Macao and beyond and opportunities in the region as well as updates on mature, emerging and future markets alongside the latest iGaming developments, challenges, solutions and opportunities.
CR142-p46-47-Events_Coinslot NEW 13/08/2014 15:17 Page 2
YXYXYXY
Casino Review is the premier b2b publication for the international casino and gaming industry. With a combined print and digital circulation in excess of 14,000 per month, Casino Review has become the first choice read of casino operators, legislators and senior casino executives. Sign up for your free digital version at www.casinoreview-online.com corporation ltd
GBmedia
EDITORIAL Managing Editor: Ken Scott Email: ks@sjc.co.uk Tel: +44 (0)1273 699 900 Edition Editor: James Walker Email: jw@sjc.co.uk Tel: +44 (0)1273 699 900 Reporters: Joseph Ewens, Hugh Sorrill, Alan Campbell, Chris Webster ADVERTISING Neil Judson
Email: njudson@gbmedia.eu Tel: +44 (0)1204 396 397 PRODUCTION Ad Production: Dave Roderick Email: gdk@sjc.co.uk Editorial Design: Gina Lloyd Email: gl@sjc.co.uk Editorial & Production Office: 20 New Road, Brighton BN1 1UF, UK Tel: +44 (0)1273 699 900
AFRICAN GAMING SUMMIT
SUBSCRIPTIONS Subscriptions: Sarah Haworth Email: shaworth@gbmedia.eu Tel: +44 (0)1204 396 397 Publishers GB Media Corporation Ltd, Bolton Technology Exchange, 33 Queensbrook, Bolton BL1 4AY, UK Tel: +44 (0)1204 396 397 Publisher: John Sullivan Email: jsullivan@gbmedia.eu
GIGSE
African Gaming Summit GiGSE set for Johannesburg reveals 2015 dates ollowing discussions with stakeholders, the Global iGaming Summit and Expo (GiGSE) has announced that next year’s edition of the event will return to the Hyatt Regency in San Francisco, California, over the more traditional dates of April 21-23. The 2014 chapter of GiGSE took place from July 14-16 alongside the second annual Social Casino Summit and saw over 700 delegates gain invaluable competitive and consumer insights thanks to an extensive programme of strategic debates, product demonstrations, workshops and networking events. “The 2014 event featured a number of highlights, not least the passionate debate between governor Ed Rendell and mayor Willie Brown, the publication of findings from our two New Jersey players’ surveys, which provided evidence to show that casino games are overtaking poker, the social game studio tours, marketing workshop at the BetAmerica.com office and the networking dinner at the Graton Resort and Casino hosted by the chairman of the Graton Rancheria tribe,” said Ewa Bakun from show organiser Clarion Events. “Building on these many highlights and innovations, which are unique to GiGSE, we have listened to our customers who were passionate in their desire to bring the event forward in the 2015 calendar. As a consequence, we have moved quickly to secure and to announce our new dates in order to provide the markets we serve with maximum advance notice. “I hope that the initiatives introduced in 2014 coupled with our new dates will allow the maximum number of stakeholders to join us for what is North America’s iGaming event of choice and the event at which the future of iGaming is shaped.”
F
T
he second annual African Gaming Summit and Exhibition will be held from October 6-8 at the Emperors Palace in Johannesburg, South Africa. The event will draw industry leaders from around the world to discuss key issues facing the future of gambling in South Africa. The Summit will include presentations and discussions on the government’s plans for regulating remote gaming in South Africa featuring notable speakers such as Geordin HillLewis, shadow minister in the Department of Trade and Industry, and MacDonald Netshitenzhe, policy and legislation chief director at the Department of Trade and Industry. There will also be workshops covering all aspects of South Africa’s gaming
industry including sessions exploring marketing analytics chaired by Rick Campbell of American Casino and Entertainment Properties while Garron Whitesman from Whitesmans Attorneys will cover how to establish successful online gaming partnerships. “The attendees at the African Gaming Summit and Exhibition will consist of CEOs, senior directors and key people in the gaming industry such as casino operators, regulators, LPM and bingo operators, bookmakers, horseracing, betting and tote, lotteries, wagering and betting solutions, gaming software providers, equipment suppliers and manufacturers, investors, venture capitalists and payment providers,” read a statement from organiser Eventus International.
G2E LAS VEGAS
G2E lines-up big hitters
S
eptember’s 14th Annual Global Gaming Expo (G2E) is set to lay claim to its most impressive array of industry speakers in the event’s history. The three-day event will feature keynote seminar addresses from chief executives - Sheldon Adelson (Sands), Patti Hart (ITG), Jamie Odell (Aristocrat), Jim Murren (MGM Resorts), Steve Wynn (Wynn Resorts) - and chief technical officer Thomas Graf (Novomatic), representing a hitherto unrivalled spectra of industry know-how. Areas of discussion will focus on the
subjects of skill-based gaming consumer behaviours, data security within the online realm and capturing the younger, ‘Millennial’ customer. The event will also host its first ever Hotel Conference, delivering content on venue management and non-gaming amenities. Away from the conferences, G2E 2014 will also boast it’s largest floor-space since 2008, with over 450 exhibitors from around the world attending the event which runs from Tuesday September 30 to Thursday October 2 at the Sands Expo and Convention Centre in Las Vegas.
Opinions expressed in this publication should not be regarded as the official view of GB Media Corporation Ltd, except where stated. Views, opinions and recommendations contained in this publication are put forward for consideration only. No action should be taken in reliance upon any such views, opinions or recommendations. Neither GB Media Corporation Ltd nor contributors accept any responsibility for any loss occasioned to any person howsoever caused or arising as a result of or in consequence of action taken or refrained from in realiance on the contents of this publication.
YXYXYXY
Notes for contributors The Editorial Board welcomes the submission of articles for consideration by the editor with a view to publication. Articles submitted will not be returned and accordingly contributors making submissions should retain copies. Submission of an article will be held to imply that the article contains original unpublished work which GB Media Corporation Ltd may lawfully publish. All submissions are made at the owner’s risk. © GB Media Corporation Ltd 2014 All rights strictly reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means without the prior written permission is given, full acknowledgement of author, publisher and source must be given.
| DIARY AUGUST 2014 12-14 Australasian Gaming Expo Sydney Exhibition Centre, Sydney, Australia www.austgamingexpo.com
SEPTEMBER 2014 30-2 G2E 2014 Sands Expo & Convention Centre, Las Vegas www.globalgamingexpo.com
OCTOBER 2014 6-8 BiG Africa Summit The Emperors Palace, Johannesburg, South Africa www.bigafricasummit.com 15-17 Enada Rome Rome Expo Centre, Rome, Italy www.enada.it 20-21 Eastern European Gaming Summit (EEGS) Inter Expo Centre, Sofia, Bulgaria www.eegamingsummit.com 21-22 Balkan Entertainment & Gaming Expo (BEGE) Inter Expo Centre, Sofia, Bulgaria www.balkangamingexpo.com 22-29 International Association of Gaming Regulators (IAGR) Annual Conference Philadelphia Marriott Downtown, Philadelphia, US www.iagr.org/philadelphia-2014
NOVEMBER 2014 11-13 SAGSE Latin America Costa Salguero Convention Centre, Buenos Aires, Argentina www.monografie.com 17-19 Table Games Conference Paris Las Vegas Hotel, Las Vegas, Nevada, US www.tablegamesconf.com 18-20 Macao Gaming Show 2014 Venetian Macao, Macao, China www.macaogamingshow.com
JANUARY 2015 13-15 EAG International Expo ExCeL London Exhibition Centre, London, UK www.eagexpo.com
FEBRUARY 2015 3-5 ICE Totally Gaming ExCeL London Exhibition Centre, London UK www.icetotallygaming.com
MARCH 2015 18-19 FADJA Peru Atlantic City Convention & Entertainment Centre, Lima, Peru www.fadja.com.pe August 2014 casinoreview
| 47
Enhance player loyalty. Enhanced Game Content. The only way to refresh game content in cabinet—so players stay engaged. Deliver a fresh experience to demanding players by activating new programming already in the box. There’s no faster way to maximize game longevity and player engagement. Blockbusters like Back To The Future – Back In TimeTM, True BloodTM, and Sex and The City PlatinumTM, part of our MegaJackpots® family, are sure to draw players. And keep them captivated. Learn more at IGT.com/EnhancedContent www.igt.com/enhancedcontent
© 2014 IGT. All rights reserved. Back to the Future, Back to the Future II and Back to the Future III are trademarks and copyrights of Universal Studios and U-Drive Joint Venture. Licensed by Universal Studios Licensing LLC. All Rights Reserved. True Blood Official HBO Licensed Product © 2014 Home Box Office, Inc. All Rights Reserved. True Blood is a trademark of Home Box Office, Inc. Sex and the City Official HBO Licensed Product © 2014 Home Box Office, Inc. All Rights Reserved. Sex and the City is a trademark of Home Box Office, Inc.