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DECEMBER 2014 • EDITION 146

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Las Vegas MGS LAYS FOUNDATIONS TO BECOME NUMBER ONE SHOW IN ASIA MACAO GAMING SHOW 2014 REPORT26

WORLD NEWS

EUROPE NEWS

Georgia stakes its claim as the new land of opportunity 2

UK gambling shows growth as focus turns to London and ICE 6

THE BUSINESS NEWSPAPER FOR THE GLOBAL CASINO INDUSTRY

T UNITED STATES

A new $700m casino project has opened in the southern US gambling enclave of Lake Charles, Louisiana. But will it turn out to be a Golden Nugget?

James Walker reports.

Tilman Fertitta: ‘Lake Charles is our first ground-up development’

he Golden Nugget Hotel and Casino has opened in Lake Charles, Louisiana. Located just two hours from Houston, Texas, the $700m (E570m) property features 740 luxury hotel rooms, an 18-hole golf course, a spa, extensive retail options, restaurants and a casino floor featuring 70 table games, poker room and 1,600 of the world’s newest slot machines.

Tilman Fertitta, chairman, CEO and sole shareholder of operator Fertitta Entertainment, cut the ribbon on the south-west Louisiana venue on December 8.

The 1.3m-square-foot property has become Feritta’s fifth casino since he took over Golden Nugget casino and hotel properties in Las Vegas and Laughlin, Nevada, nine years ago. He later bought and rebranded a Trump facility in Atlantic City, New Jersey, and he recently opened a casino in Biloxi, Mississippi.

“Golden Nugget Lake Charles is like no other gaming resort offering a first-class, Las Vegasstyle atmosphere right here in the South,” said Fertitta. “We know our strong Texas and Louisiana customer base will enjoy having these unbeatable, luxury amenities closer to home.

“Our Vegas, Laughlin, Atlantic City and Biloxi properties each required a dramatic renovation and rebranding, whereas Lake Charles is our first ground-up development and articulates our style through and through.”

A popular spot for Texas gamblers and the closest in proximity, Lake Charles is located hours away from three of the largest, top-tier Texas markets - Houston, San Antonio and Austin which generate almost 65 per cent of the gaming revenue in Lake Charles.

Golden Nugget opens as the jewel in Lake Charles crown

Golden Nugget joins L’Auberge and Isle of Capri in Lake Charles. Less than 30 miles in either direction, gamblers can also visit the Coushatta Casino Resort in Kinder and the Delta Downs racetrack in Vinton.

Together, they draw millions of visitors each year.

Fertitta and L’Auberge operator Pinnacle Entertainment said that while they are competitors, their proximity to one another will help both businesses. A boardwalk and walkway connecting the two casinos are under construction.

Louisiana now has 16 authorised casinos and four horse racing tracks with casino games.

The Harrah’s venue in New Orleans is the only casino not

required to be on an approved body of water - an exception to the 1992 legislation that allowed so-called ‘riverboat casinos’ and led in short order to their opening on designated waterways, including the Calcasieu River, which runs through Lake Charles.

Because of that law, the L’Auberge and Golden Nugget each maintain a steering wheel and propellers even though neither building can float.

“It’s the closest place you can have a casino in Texas,” he said.

“You have so many Texans that want to gamble. And we have built a property that is so beautiful. This property is Vegas. You walk into it and you could be on any property on the strip.”

ANALYSIS ver the last two decades, gamblers from Texas have helped transform Lake Charles, a blue-collar petrochemical town in south-western Louisiana, into a vibrant tourist destination anchored by waterfront casinos. While some industry analysts have questioned the need for a new gaming venue in Lake Charles, the opening of Golden Nugget comes as the Louisiana gaming market begins to recuperate from the economic collapse of 2008. In fiscal 2014, the Louisiana Gaming Control Board (LGCB) said the industry generated revenues of $675m (E546m), up $4m (E3.2m) on the previous year. More recently, in October 2014, all but three of Louisiana’s casino venues reported a year-on-year increase in monthly revenues, with the total reaching $137m (E110m), up 3.5 per cent on the same period in 2013.

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CR146-p02-04-World_Coinslot NEW 11/12/2014 09:22 Page 1

News World

NEW TERRITORY

Melco subsidiary turns to Georgia casino development

The historical centre of Tbilisi

A Hong Kong-listed company controlled by Melco co-chairman Lawrence Ho is co-ordinating investment for a new casino project in Georgia.

M GEORGIA

elcoLot, the lottery and services provider to Mainland China, has partnered with Taiwanese firm Firich Enterprises Company to open a casino in the Republic of Georgia.

A subscription agreement has been reached for a company called SPV, Express Wealth Enterprises, whollyowned by MelcoLot, to obtain a gaming licence and undertake the casino project in Tbilisi, capital of the Eurasian state.

Pursuant to the agreement, Firich has agreed to subscribe for the 5,530 new

2 | casinoreview December 2014

SPV shares at a consideration of US$50m (E41m), while Oz Gaming Georgia has agreed to subscribe for 200 new SPV shares at a consideration of $200 (E160).

MelcoLot, of which the CEO is Henry Ko Chun Fung, is incorporated in the Cayman Islands. The company is a subsidiary of Hong Kong-listed Melco International Development, the principal investment vehicle of gaming magnate, Lawrence Ho. The gaming licence in Georgia is expected to enable SPV to conduct gam-

ing business in respect of the casino project for a minimum period of 15 years.

“It is intended that SPV will utilise the net proceeds from the subscription of approximately $49,890,000 (E40.6m) to fund the costs and expenses related to securing the lease arrangements in respect of the project site of the casino project and payments under that lease, and the general development, implementation and running of the casino project,” read the filing.

According to Firich, the casino project is expected to

Lawrence Ho

be complete by the end of next year, becoming operational in the first quarter of 2016. According to reports, future customers are expected to be from the Middle East, Turkey and Europe.

“MelcoLot will be responsible for the management and operations as well as maintaining relations with government officials in Georgia,” Melco International said.

Ho, who has a core business developing casino resorts in Macau and the Philippines - via Melco Crown, his joint venture

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YXYXYXY CANADA / ESTONIA / GEORGIA / PHILIPPINES

ICR NEWS: WORLD 2-5 EUROPE 6-9 ASIA & OCEANIA 10-13 AFRICA & MIDDLE EAST 14-15 NORTH AMERICA 16-19 SOUTH & CENTRAL AMERICA 20-23 COMMENT & ANALYSIS 24-25 NEW OPENING

AWARDS

MELCOLOT elcoLot, an investment holding company, is engaged in the lottery business in the People’s Republic of China. It provides lottery-related technologies, systems and solutions for lottery operators, including the China Welfare Lottery and the China Sports Lottery.

The company also distributes versatile lottery terminals for the China Sports Lottery Association. In addition, the Hong Kong-based group manages a network of retail outlets and a telebetting system for the distribution of lottery scratch cards and computergenerated tickets, as well as provides maintenance and upgrade services for the high frequency game. MelcoLot also develops multimedia content distribution channel for the Shi Shi Cai game, and offers management services for the distribution of mobile lottery products, as well as venue management consultancy services.

Best business prize for Olympic Entertainment

M

ESTONIA

E City Of Dreams Manila prepares for soft launch PHILIPPINES

he Entertainment City gaming and entertainment complex in the Philippines will soon have its second operational casino following a soft launch this weekend of the $1.2bn (E973.7m) City Of Dreams Manila development.

The product of operator Melco Crown Entertainment and Filipino backer Premium Leisure and Amusement, which is run by local billionaire Henry Sy, City Of Dreams Manila will open on a 6.2-hectare site a year after Solaire Resort and Casino offering VIP and mass-market gaming facilities.

Although originally scheduled to commence operations in November, City Of Dreams Manila is now set to have a ‘soft opening for the local market’ with ‘pretty much everything’ on offer followed by a more formal launch in February, according to Lawrence Ho Yau Lung, co-chairman and CEO for Melco Crown Entertainment.

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“It’s the first time we are in that market [and] it’s a new jurisdiction [so] this is the safest approach,” said Ho. Macau-based Melco Crown Entertainment stated that City Of Dreams Manila will be able to offer its full complement of up to 380 gaming tables and 1,700 slots alongside the same number of electronic table games in addition to 950 rooms by the end of December.

Entertainment City is owned by the state-run Philippine Amusement and Gaming Corporation (PAGCor) and it is being hoped that the Las Vegas-like complex will help the Asian nation increase its gaming revenues from last year’s $2.2bn (E1.7bn) to $7bn (E5.6bn) by 2019. City Of Dreams Manila and Solaire Resort and Casino are scheduled to be joined late in 2016 by the $2bn (E1.6bn) Manila Bay Resorts development of Japan’s Tiger Resort Leisure and Entertainment before Bayshore City Resorts World, which is a joint venture of Filipino billionaire Andrew Tan and Malaysia’s Genting Group, opens in the fourth quarter of 2018.

uropean casino operator Olympic Entertainment Group has beaten a host of fellow Estonian companies to be voted by daily business publication Aripaev as the Baltic nation’s best enterprise.

The Tallinn-based firm operates casinos in seven European countries including Poland, Italy and Slovakia as well as online and came top of a list of the 500 largest Estonian companies in terms of revenues and profitability ahead of electricity generator Elering, construction giant Riverside and energy firm Eesti Energia.

“We have put a lot of effort into building a prosperous international business keeping the high satisfaction of our customers and the best industry standards at the same time in all our markets,” said Armin Karu (pictured), chairman of Olympic Entertainment.

“Our ambition never settles, however, and we are continuously looking for possibilities to expand and grow our business in Europe even more as well to other continents.

Olympic Entertainment also operates venues in Latvia, Estonia, Belarus and Lithuania with Karu stating that the firm’s newest casino inside the Hilton Tallinn remains on schedule to open in the spring of 2016.

The prestigious award follows what has been a challenging year for Olympic Entertainment with its third-quarter financial results showing an almost one percent drop yearon-year in total revenues to $47.4m (E38.1m) although the nine-month figure was up by 4.2 percent to $137.3m (E110.3m).

A six percent rise year-on-year in third-quarter expenses for Olympic Entertainment to $37.3m (E30m) led to its total profits for the three-month period falling by 24.4 percent to $8.7m (E7m) while $111.5m (E89.6m) in costs since January, which was a 7.6 percent escalation when compared to the same nine months in 2013, led to profits falling by 3.2 percent to $22.4m (E18m).

DIVERSIFICATION with Australia’s Crown - is developing a track record for independently using smaller listed vehicles to make more modest bets on other casino markets.

MelcoLot is also being used as a vehicle to bid for a casino licence in the BCN World real estate development called in Barcelona, Spain. Firich, meanwhile, already counts itself among the Summit Ascent Holdings consortium, which is putting money into an existing Lawrence Ho-backed casino scheme near Vladivostok in Russia’s Far East.

Century Casinos awarded Canadian licence CANADA

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entury Casinos, the Colorado-based operator of 30 casinos worldwide, has been selected by Horse Racing Alberta (HRA) to operate the pari-mutuel off-track horse betting network in southern Alberta, Canada, starting in 2015.

HRA invited applicants to submit their proposals to operate the off-track betting network in Alberta. After a thorough selection process, Century Casinos, together with its off-track betting partner,

was awarded the licence to operate the betting network in southern Alberta, which includes Red Deer, Calgary, Leth-

bridge, Medicine Hat and the rural OTBs in this area.

HRA awarded a second licence to Northlands Park out of Edmonton, which will run the OTB network in northern Alberta.

“This licence will enable us to professionally develop and operate off-track betting offerings throughout southern Alberta,” said Century CEOs, Erwin Haitzmann and Peter Hoetzinger.

“It is an exciting time in the pari-mutuel industry with various new technologies that will assist in growing and servicing the Alberta off-track betting network.”

December 2014 casinoreview

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News

CYPRUS / MACAU / VIETNAM

World

Macao Gaming Show November 17-19 2015

MACAO GAMING SHOW 2014: ATTENDANCE FIGURES AT THIS YEAR’S MGS JUMPED FROM 8,634 IN 2013 TO 11,987, AN INCREASE OF 39% WWW.MACAOGAMINGSHOW.COM

MARKET FORECAST

Macau to rebound in 2015, say local analysts MACAU

A

t the recent Macao Gaming Summit, industry analysts Grant Govertsen and Philip Tulk claimed that growth would return to the Macau marketplace during 2015.

Grant Govertsen (pictured), founder of Union Gaming Research Macau, and Philip Tulk, director of Conglomerates,

Hotels and Gaming at Standard Chartered, met on the stage of the Macao Gaming Summit to take a detailed look at the future of the Macanese gaming market and beyond.

The pair focussed mainly on the unexpected slowing of growth numbers in the region, with Tulk admitting that he had optimistically forecast 17 percent growth for this quarter, whereas figures actually put Macau closer

to zero percent. He credited the lack of transparency in the junket system for making Macau a hard market to predict, but noted that people were still coming to the region in droves. “The slowdown we’ve seen doesn’t appear to have anything to do with visitation,” he said, declaring instead that a lower spend was to blame for a cooling financial climate.

VIP figures have suffered particularly, with Tulk claiming that

big-money players from China have lost some faith in the junket business model. He did, however, predict that they would return: “My crystal ball is saying that positive growth for VIP should return in the second half of 2015.”

Govertsen, meanwhile, suggested that mass market numbers could rebound more quickly “VIP recovery is probably longer tail than the mass recovery, especially if there’s some

sort of resolution in Hong Kong,” he said.

Looking at the wider Asian gambling environment, Govertsen was doubtful that Japanese legislation would pass any time in the near future, while Tulk suggested that new casinos projects in South Korea may benefit from attractive the under-served eastern Chinese market.

NEW LICENCE

INVESTMENT

‘Immense’ interest for Cyprus casino licence

Chow Tai Fook interested in new Vietnamese casino

CYPRUS

fter announcing earlier this year that it intends to licence its first resort casino sometime over the next 12 months, the government for the Greek half of Cyprus has revealed that interest from potential foreign operators has been “immense”.

Large numbers of Greek Cypriots regularly travel north to the breakaway Turkish Cypriot state, recognised only by Ankara, to enjoy its casinos. Now, the conservative government of president Nicos Anastasiades is set to legalise gambling next year as a way to invigorate the island state’s tourism industry, create jobs and attract foreign investment in the wake of last year’s international financial bailout.

Cyprus welcomes approximately two million tourists a year, and the sector represents about 10 per cent of its overall output.

The previous communist government of president Demetris Christofias, which ruled from 2008 to 2013, flatly refused to entertain the idea of legalised gambling despite reported interest from foreign operators, while some Cypriots still see

A

US casino giant Caesars Entertainment is one of many operators said to be interested in bidding for a new gaming licence in Cyprus.

the activity as socially and morally undesirable.

“This will be one of the most important infrastructure projects in Cyprus in coming years,” said government spokesperson Nicos Christodoulides.

The first resort casino for the Greek half of Cyprus is to be sited in the south of the island near the city of Limassol with the successful applicant receiving a 30year licence that includes a monopoly for the first 15 years in exchange for agreeing to pay a 15 per cent gross income tax.

The selected operator will also have to pay annual licence fees of $3m (E2.5m) for the first four years, fol-

4 | casinoreview December 2014

lowed by $6.1m (E5m) for the next quadrennial term and build a hotel containing at least 500 rooms and offering a minimum of 1,000 machines and 100 gaming tables. After the eighth year, proposed legislation would permit the National Gaming Authority to modify the fee every four years to support its operating costs.

The government has already invited expressions of interest and expects to begin a two-stage selection process following the passage of relevant legislation before unveiling the eventual winner in August. US casino giant Caesars Entertainment is one of many operators said to be inter-

ested in bidding for the Cypriot licence and reportedly has already dispatched representatives to present its case to government representatives.

Following a meeting of ministers in November, the government revealed that interest had also come from investors in the US in addition to Asia while it decided to permit the successful applicant to build the resort casino on private land. To address any concerns over lost time while the new development is constructed, the winning bidder will now also be allowed to operate in an existing structure until the full resort is completed.

VIETNAM

ong Kong-based conglomerate Chow Tai Fook Enterprises is reportedly interested in investing in a $4bn (E3.21bn) casino project for the central Vietnamese province of Quang Nam. The company is controlled by the family of Hong Kong’s fourth richest man, Cheng Yu-Tung, with interests from property to jewellery and is hoping to tap into the boom in gaming demand as more Chinese nationals travel overseas.

“We are interested,” said Henry Cheng, a director for the firm and Cheng Yu-Tung’s son. “We are doing something now to secure this project.”

Policy makers in Vietnam are hoping to replicate the success of Macau and Singapore in attracting gaming resorts and tourism with the nation’s largest fund manager, VinaCapital Group, in charge of developing the Quang Nam project.

Henry Cheng also serves as chairman of Hong Kong-listed International Entertainment Corporation, which agreed to

H

pay up to $948m (E763.2m) in January for a stake in Macau gambling junket operator Sun City Gaming Promotion.

Cheng Yu-Tung’s family also holds a ten percent stake in operator Sociedade de Turismo and Diversoes de Macau, which was established by longtime friend Stanley Ho and gives the 89-yearold control of more than 290m shares in Asia’s largest casino operator, SJM Holdings.

Finally, the summer saw Chow Tai Fook partner with Far East Consortium International and Echo Entertainment to bid for a contract to build a casino in Brisbane, Australia, while it also wants to expand its gaming business in South Korea with any profits going to charity.

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CR146-p06-08-Europe_Coinslot NEW 11/12/2014 09:51 Page 1

News Europe

GAMBLING STATISTICS

Significant growth for British gambling industry

The UK’s Gambling Commission has reported a six per cent annual increase in gross gaming yield for the y

A UNITED KINGDOM

n official report from the UK’s Gambling Commission has found that the country’s gambling industry experienced significant growth from April of 2013 to March this year, after generating £6.8bn (E8.6bn) in gross gambling yield - a rise of six per cent year-on-year.

The study reported that the non-remote betting sector represented the largest portion of the market, with a 47 per cent share of gross gambling yield, while the remote betting, bingo and casino verticals experienced the highest growth at 22 per cent followed by casinos with 15 per cent.

The Commission found that other sectors showing growth included arcades, betting and large society lotteries, with only bingo experiencing a decrease in gross

6 | casinoreview December 2014

gambling yield over the course of the reporting period.

The research detailed an increase in gross gambling yield for Category B2 machines in betting shops of one per cent or just under £17.6m (E22.2m) to £1.56bn (E1.97bn) set against a four per cent rise in the number of machines, while revealing that 102,715 people were employed across the industry, which was a five per cent decline year-on-year.

The land-based gambling industry could find itself in an even better position by the time the Gambling Commission’s next survey is released, after new provisions contained in the controversial Gambling (Licensing and Advertising) Act targeting the remote sector came into force ear-

COUNCIL LEADS FOBT CAMPAIGN t the heart of east London, Newham Council is leading a group of 93 local authorities from across the UK in petitioning the government to decrease the maximum stakes on Category B2 gaming machines - also known as fixed-odds betting terminals (FOBTs) - from £100 (E126) to £2 (E2.53).

The authority has filed a Sustainable Communities Act calling on the government to “bring an end to unregulated casino-style gambling on the nation’s high streets”. Concerned about the proliferation of high street betting shops, Newham Council cited a recent Campaign For Fairer Gambling report that found double the numbers of FOBTs in England’s 55 most deprived areas when compared with the 115 most affluent. Officials at Whitehall must now respond within a year, which will come before the start of a triennial review into gaming machine stakes and prizes.

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lier this month, after surviving a High Court challenge from the Gibraltar Betting and Gaming Association (GBGA).

Passed by Parliament in May following an influx of offshore operators, the Gambling (Licensing and Advertising) Act now requires that all remote gambling operators wishing to advertise or offer their services to UK-based players first obtain an operating licence from the Gambling Commission.

Such operators were previously permitted to offer their services to UK-based players if they had been licensed by authorities in Gibraltar, a nation in the European Economic Area or a ‘white-listed’ jurisdiction such as Alderney, the Isle of Man, Tasmania or

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CROATIA / ITALY / SLOVENIA / UNITED KINGDOM YXYXYXY YXYXYXY Macao Gaming Show November 17-19 2015

MACAO GAMING SHOW 2014: MGS HAS BEEN DECLARED A MAJOR SUCCESS WITH ALL KPIS UTILISED BY THE ORGANISERS SHOWING A POSITIVE YEAR-ON-YEAR TREND WWW.MACAOGAMINGSHOW.COM

EUROPE ROUND-UP

MARKETING

Genting UK inks Arena sponsorship deal

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UNITED KINGDOM

nly a few months from opening its new £150m (E189.3m) Resorts World Birmingham integrated leisure and entertainment complex and Genting UK has signed a deal to serve as the title sponsor for the adjacent 13,900-seat LG Arena.

The 10-year agreement with owner NEC Group begins in January following the expiration of current title sponsor LG Technology’s deal.

Genting UK declared that the arrangement would provide it with an opportunity to build the awareness of its brand across the country while additionally supporting its strategy of positioning its name ‘beyond that of a purely gaming-focused business to a major provider of entertainment and lifestyle experiences’.

“We are delighted that from January 2015 this superb venue will be known as the Genting Arena,” said Peter Brooks, president and chief operating operator of Genting UK. “Over several years, in par-

O

he controversy over who will operate the newest casino in Malta took a unique turn last month after the losing bidder filed an injunction and asked officials to investigate allegations of perjury by the retired judge tasked with leading a committee preparing a technical report into the best proposal.

Following the submission of bids, Eden Leisure was selected as the preferred operator for a new casino in St Julian’s (pictured) while Dragonara Gaming, which already operates the nearby Dragonara Casino, placed second. Dragonara Gaming subsequently filed an injunction and claimed that its bid had been $3.7m (E3m) higher than Eden Leisure’s.

The tit-for-tat legal dispute has now seen the injunction lifted with negotiations between Eden

allel with developing Resorts World Birmingham, we have been working closely with the NEC Group and enjoyed a very productive partnership.

“The sponsorship of the Arena is a very strong symbol of that working relationship and of the exciting opportunities that lie before us to further enhance and develop the experiences of visitors to the NEC. Brooks added: “Sponsorship of the Arena is a significant development for the Genting business in the UK. As our offer develops further it is important that we continue to strengthen awareness for the Genting brand and this is a significant part of that strategy.

“Our parent, the Genting Group, based in Malaysia, is well known and respected across Asia and the US as a leisure and entertainment brand and this is a further step in helping us to do the same here in the UK.”

TOURNAMENT

eld for the year to March.

Antigua and Barbuda.

As a result, all broadcasters, publishers and sports clubs carrying any gambling advertising must now ensure that the involved operator holds an appropriate licence in addition to displaying a link to the Gambling Commission webpage where further information is to be displayed.

Another key part of the legislation will see all remote gambling operators required to pay a 15 per cent tax on all gross gambling profits attached to transactions from players whose usual place of residence is in the UK. Previously, numerous operators had chosen to base their operations in territories such as Gibraltar, where tax rates could be as low as one per cent.

Spain wins first European Slot Championship ITALY

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he first annual European Slot Championship (ESC) took place at the luxurious Casino Campione d’Italia in Italy on November 22, with a Spanish player winning the inaugural title and a trip to Las Vegas.

The brainchild of Carlo Pagan, CEO of the Italian casino group and member of the European Casino Association (ECA) board, ESC brings together slot enthusiasts from across Europe.

The final involved participants who won qualifying rounds held in eight different European countries (Portugal, Spain, Italy, Slovenia, Austria, Hungary, Serbia and Poland) in 28 real life casinos and on the Casino Campione gaming site.

Ron Goudsmit, chairman of the ECA, attended the final, which saw Spaniard Josè S winning the three-minute round with a score of over one million points - more than 200,000 points ahead of the young runner-up, Tatjana G

from Poland. Third place went to the Hungarian, Marton.

ESC is supported by the ECA, alongside leading global slots manufacturer IGT. The tournament has been created to help promote Europe’s land-based casino industry and linking markets together in a new and exciting way.

Both the ECA and IGT have confirmed their support for the event in 2015.

Leisure and the government over concessions set to resume.

In Germany, meanwhile, the casino inside Frankfurt Airport has closed with the loss of up to 15 jobs following an over 46 per cent drop in annual revenues.

Opened 14 years ago as the world’s second airport casino, the 150-square-metre venue inside the departure lounge at Terminal One offered American roulette and blackjack in addition to 45 slots.

Elsewhere, a Hong Kong-listed investment company has decided not to acquire a majority stake in the firm holding the rights to operate a casino at the Lara Park Hotel in the northern Cypriot town of Girne.

Amax International signed a non-binding agreement in June of 2013 to buy 51 percent of Samoa-incorporated Southern Ruby but has now bowed out after failing to finalise ‘the terms of a formal sale and purchase agreement’.

December 2014 casinoreview

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News Europe

Macao Gaming Show November 17-19 2015

MACAO GAMING SHOW 2014: THE NUMBER OF EXHIBITING COMPANIES AT THIS YEAR’S MGS ROSE 30% WITH A TOTAL OF 146 EXHIBITORS ON THE SHOW FLOOR WWW.MACAOGAMINGSHOW.COM PERFORMANCE

Introduction of virtual sportsbetting alongside VLT success has seen Italian operator SNAI post increases in revenues and earnings.

Business improves for SNAI

ITALY

he introduction of virtual sportsbetting alongside the success of its video lottery terminal (VLT) business has seen Italian operator Sindacato Nazionale Agenzie Ippiche (SNAI) post an almost 12 per cent rise year-on-year in total revenues for the first nine months of 2014 to $488.9m (E393.9m).

For the third quarter, the Milan-based firm saw overall revenues hit $159.8m (E130.2m), which represented an increase of 31 per cent year-on-year, while adjusted earnings before interest, tax, depreciation and amortisation rose 76.6 per cent to $36.5m (E29.8m).

Adjusted earnings before interest, tax, depreciation and amortisation for the initial nine months of the year

“As stated, the introduction of betting on virtual events at the end of December 2013 had a significant impact, generating during the period a direct collection of $322.3m (E262.5m) and revenues of $41m (E33.4m). The revenues from AWPs nearly closed the gap experienced in June relative to the same period of the previous year but the effect generated by the departure from our network of a major customer who became a direct concession holder on March 20, 2013, has not yet been fully overcome.”

• In other news from Italy, late-October saw the European Court of Justice rule against controversial legislation that taxed winnings indacato Nazionale Agenzie Ippiche (SNAI) is one from games of chance of the primary national operators in the Italian played in casinos located in games and gambling sector, and is the country’s other European Union (EU) leading company for horse and sports betting. Listed nations while exempting on the Milan stock exchange, SNAI is a multi-licensee such levies on prizes won in for the management of authorised gaming in Italy. It domestic venues. also accepts games on the Superenalotto lottery and The bloc’s highest court Win for Life online through agreements with other found that Italy had establicensees and licences obtained from the Italian lished discriminatory tax Customs and Monopolies Agency. arrangements, which is contrary to the ‘freedom to proSeptember comprised 4,858 premises. However, the vide services’ principle laid certified machines nation- good performance was out in Article 56 of the EC wide,” read a statement lower than expectations Treaty, and rejected the govfrom SNAI. due both to the delay in the ernment’s contention that “The remaining 194 rights availability of the reduced the measure was justified as are being reallocated as pro- pay out games and the a way to prevent money vided by the plan for reloca- updating activities laundering and compulsive tion to more performing requested by ADM. gambling.

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reached $106.3m (E86.6m), which represented a boost of 24.6 per cent when compared to the same period in 2013, despite a decrease in revenues from horseracing bets.

All of this left SNAI with a third-quarter loss of just over $3m (E2.5m), which was 80.6 per cent better than last year’s deficit of $16.2m (E13.2m), while its ninemonth shortfall of $12m (E9.8m) was a 31.8 per cent improvement on the E17.6m (E14.4m) recorded for the same period in 2013.

“Revenues from VLTs grew along with the expansion of the installed network, which at the end of

ABOUT SNAI

S

LEGISLATION

Croatia gambling laws approved

by EU CROATIA

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roatia is moving towards the launch of an open, legalised and expansive online poker market, following approval by the European Commission of proposed gaming laws.

Legislators in the eastern European nation will now allow Croatian poker players to join gaming websites and register as users. This is different from prevailing models in other larger European countries such as Italy and France, which have made only specific sites available to players, in a more closed market situation.

Contingencies for approval include operator compliance with taxation requirements for the country, and applications for a specific gaming licence

DIVESTURE

Hit looks to offload Sarajevo property SLOVENIA

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it Group, the eastern European leisure conglomerate, is contemplating the sale of its Hit Coloseum subsidiary, which operates the Coloseum Club gaming and entertainment centre in Sarajevo, the capital of Bosnia and Herzegovina.

“As one of the first casinos offering table games, Coloseum Club still has a dominant market share in gaming tables in Sarajevo Canton, namely 78.6 per cent,” Hit said in a statement. “It also has strong

local market share in slot machines (16.3 per cent) and entertainment activities (11 per cent).

“The company is on track with restructuring activities since 2013 results improved over

8 | casinoreview December 2014

2012, while capital injection during 2013 provided necessary strengthening of the balance sheet.”

While the Coloseum Club is predominantly dependant on domestic and surrounding local mar-

ket, its position provides an opportunity to tap growing Middle East markets, the group said.

Earlier this year, Hit Group, which currently consists of seven companies that focus on gaming,

entertainment and highend hotels, announced plans to sell its 75.01 per cent stake in Maestral Resort and Casino in the coastal town of Pr no, Montenegro.

Through its Montenegro subsidiary, Hit co-owns and operates the Maestral resort, which includes a four-star hotel, casino, congress centre, spa and restaurants. According to the group, the casino constitutes the facility’s core activity, with 130 slot machines, three electronic roulettes and 18 gaming tables spread over 1,000sq.m.

before offering services to Croatian players.

The laws are scheduled to go into effect in 2015, for operators who apply for licensing at the Ministry of Finance and pay an initial fee of HRK3m (E390,000).

Operators must also maintain in Croatia a bank deposit of a financial value surpassing the licensing fee, a requirement that enables regulators to insure against any damages that might require revocation or suspension of the licence.

The Croatian government plans to ask operators to pay a five per cent monthly levy on their gross revenues, and at the same time set a tiered incremental tax that players will have to pay on their winnings.

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CR146-p10-12-Asia_Coinslot NEW 11/12/2014 10:02 Page 1

News

Asia & Oceania

EXPANSION

With two major projects set for completion next year, Galaxy Entertainment is bucking downward trend in Macau.

Galaxy expands amid slowdow MACAU

I

t will take a lot more than a dip in Macau’s monthly performance to deter businesses from investing heavily in the city as Galaxy Entertainment Group defies all with reports of a six per cent rise in thirdquarter revenues to $17.3bn (E13.9bn).

Adjusted EBITDA for Galaxy, which operates the Galaxy Macau and StarWorld Hotel properties in the Chinese SAR, was up one per cent to $3.3bn (E2.6bn) in the three months to September 31, compared with the same period last year.

Total Mass revenue increased 12 per cent yearon-year to $4.8bn (E3.9bn) while VIP climbed five per cent year-on-year to $11.8bn (E9.5m). Electronic games grew six per cent year-on-year to $500m (E400m).

“Our results represent a strong performance in the face of strong macro head-

10 | casinoreview December 2014

winds, underlining the enduring appeal of our properties and management’s rigorous focus on growing revenues and driving efficiencies across the business,” said Galaxy chairman, Lui Che Woo. “During the quarter we completed our 10th year of operation in Macau. We are pleased that both of our flagship properties performed well in the period.

Galaxy Macau delivered solid financial results, and StarWorld Macau’s EBITDA performance was in line with the same quarter last year and ahead of the previous quarter.”

In addition to Galaxy Macau and StarWorld Hotel, Galaxy is currently in the process of renovating the Grand Waldo Complex on the Macau Peninsula.

Across the water, on Cotai, Phase 2 of the group’s sprawling Galaxy Macau development is scheduled to be finished on time by

mid-2015.

“The redevelopment on the Grand Waldo Complex is on schedule, and we plan to unveil our exciting conceptual plans in January 2015,” Lui said. “The emphasis will be familyfriendly leisure, and entertainment for the middle class.

Galaxy currently offers approximately 2,700 fivestar hotel rooms, all of which have been at near maximum occupancy throughout 2014. To meet the expected growth in demand and to provide visitors with a more complete entertainment, retail and food and beverage offer, Lui said the group has “ambitious plans” to further develop its offer in Macau.

“Phase 2 of Galaxy Macau will add approximately a further 1,350 fivestar hotel rooms targeting higher value customers and will dramatically extend the property’s retail offer,”

AWARD-WINNING PROPERTIES s Galaxy booked its third-quarter results, the group’s flagship properties, Galaxy Macau and StarWorld Hotel, were recognised with a total of seven high-profile awards from various organisations during October, and made nine appearances in the prestigious Michelin Guide Hong Kong and Macau 2015. Commenting on the awards, Mike Mecca, president and chief operating officer for Galaxy, said: “Our unique philosophy of ‘World Class, Asian Heart’ informs everything we do to provide guests with exceptional experiences that combine sincere Asian hospitality with the highest service standards found anywhere in the world. It is immensely satisfying to have the highly respected Michelin Guide recognise the quality of all our four hotels and five of our restaurants today. The opening of our Phase 2 development in Galaxy Macau next year, will add two additional worldclass hotels, renowned restaurants and a doubling of our Grand Resort Deck, which I am confident will continue to delight our guests in future.”

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CR146-p10-12-Asia_Coinslot NEW 11/12/2014 10:03 Page 2

AUSTRALIA / CAMBODIA / MACAU / NORTHER MARIANAYXYXYXY ISLANDS Macao Gaming Show November 17-19 2015

MACAO GAMING SHOW 2014: THE NUMBER OF EXHIBITING COUNTRIES REPRESENTED AT MGS THIS YEAR ALMOST DOUBLED JUMPING FROM 11 TO 20. WWW.MACAOGAMINGSHOW.COM ACQUISITION

Donaco planning to purchase Cambodian casino CAMBODIA

ustralian entertainment operator Donaco International has signed a deal that will see it acquire a significant gaming and hospitality business in Cambodia, although the group has yet to reveal the name or location of the new venue.

The Sydney-based firm, which already operates a 428room hotel and casino in Vietnam’s northern province of Lao Cai on the border with China, stated that it is currently in the process of conducting due diligence on its latest acquisition.

“Cambodia has a well-established gaming industry, which is supported by the government as a driver of tourism, since local citizens are not permitted to enter casinos,” read a statement from Donaco.

“The business proposed to be acquired is well-established

A

wdown

and profitable with good growth prospects. The market that it serves is distinct from the company’s existing China-facing business at the Aristo International Hotel (pictured). The proposed acquisition thus provides diversification as well as scale benefits.”

Donaco declared that the next few months will see it complete its due diligence investigations with the final acquisition price due to be set at six times the unknown Cambodian casino’s earnings before

interest, tax, depreciation and amortisation for the twelve months to the end of December.

“The acquisition will be funded from the company’s existing cash reserves and new debt facilities together with an equity component for the vendor,” read the statement from Donaco.

“Based on the range of financing scenarios reviewed by the board, the proposed acquisition is expected to provide strong earnings per share accretion for the company’s shareholders.”

ASIA ROUND-UP ong Kong-based gaming investment firm Silver Heritage looks set to be approved as the new operator of the casino inside the Shangri-La Hotel and Resort (pictured) in Kathmandu, Tibet.

Previously run by Malaysian company Star Management, the casino opened in December of 2010 but was forced to close due to labour unrest only a year later and has since sat idle.

Silver Heritage already operates casinos in India, Vietnam and the Philippines and plans to invest over $10,000 (E8,100) in the property before opening for business during the first quarter of 2015.

Elsewhere, the two casinos in Singapore have been fined a total of almost $168,000 (E135,800) for various breaches of the city-state’s Casino Control Act after last year being penalised to the tune of $381,000 (E307,900).

H

PERFORMANCE the chairman stated. “We are confident that it will complete by mid-2015 as Macau’s next major resort.

“We are expanding our retail offering to approximately 100,000sq.m. Galaxy expects that the expanded Galaxy Macau will capture a new wave of higher value visitors and believes that it has a distinct advantage in being the first operator to open new capacity in 2015.”

He added: “The redevelopment on the Grand Waldo Complex is on schedule and we plan to unveil our exciting conceptual plans in January 2015 with the aim to re-launch the complex in early 2015.”

For the long term, Galaxy is set to begin initial works for Cotai Phases 3 and 4 with a targeted phased opening between 2016 and 2018, and is also advancing conceptual plans for its 2.7sq.km land parcel on nearby Hengqin Island.

High-rollers push Macau’s figures down MACAU

M

acau has posted its sixth consecutive drop in monthly gambling revenues due to an ongoing anti-corruption drive that has seen high-rollers cut back on spending and is now contemplating the first full-year decline since 2002.

The only place where casino gambling is legal in China, the former Portuguese enclave saw total revenues for November fall by 20 per cent year-on-year to $3.04bn (E2.45bn), while the previous month’s drop of 23 per cent to $3.78bn (E3.05bn) represented the sharpest

since the Special Administrative Region began keeping records.

November revenues have also been adversely affected by continuing pro-democracy protests in Hong Kong, which is only a short ferry ride away from the island city, while analysts predict that December’s results may not improve, especially if a planned visit by Chinese president Xi Jinping goes ahead. The man behind the year-long campaign against corruption, the successor to Hu Jintao is due to visit Macau later this month to celebrate the 15th anniversary of its official handover with numerous experts warning that revenues could be pushed down by as much as 25 per cent year-on-year as a result.

Whether things will rapidly turn around depend on how casino operators can ride the fresh challenges: a wavering Chinese economy, tighter visa policies for those travelling to Macau, increased oversight on UnionPay cards and new smoking restrictions.

However, Macau is still the world’s largest gaming centre with its 35 casinos recently earning approximately six times as much as their counterparts in Las Vegas with gross gaming revenues of $38.18bn (E30.83bn) for the whole of 2012 and $45.27bn (E36.56bn) last year.

Marina Bay Sands, which is owned by American giant Las Vegas Sands, has been forced to hand over $150,535 (E121,600) to the Casino Regulatory Authority following numerous infractions including failing to prevent three excluded people and three minors from entering its casino. The venue was also penalised for allowing locals to enter without charging valid entry levies and permitting an “unauthorised person to exercise the functions of a special employee”.

For its part, the other Singapore venue, Genting’s Resorts World Sentosa, was fined over $15,000 (E12,100) for failing to prevent two minors from entering its casino.

Finally, Melco International Development has become the new majority shareholder of Entertainment Gaming Asia (EGT), which operates the Dreamworld Club Poipet casino in Cambodia.

Hong Kong-listed Melco International now holds 64.81 per cent of EGT after paying more than $14m (E11.3m) for some 26m new shares.

December 2014 casinoreview

| 11

CR146-p10-12-Asia_Coinslot NEW 11/12/2014 10:05 Page 3

News

Asia & Oceania

Macao Gaming Show November 17-19 2015

MACAO GAMING SHOW 2014: ‘THE SUCCESS OF MGS HAS SENT OUT A CLEAR MESSAGE TO THE INTERNATIONAL GAMING COMMUNITY’ STATED JAY CHUN. WWW.MACAOGAMINGSHOW.COM

MARKETS

Mike Tanji led a discussion of new gaming markets in Asia with three distinguished speakers giving their thoughts on the future of casino legislation in this region of untapped potential.

MACAU

wo of the world’s most sought after gaming markets are Japan and Taiwan, so it was no surprise to discover some of the region’s finest minds gathered at the nearby Macao Gaming Summit to update the industry on the potential for casino gambling in these states.

The protracted political fight for casinos in Japan fell under the purview of Dr Kazuaki Sasaki (pictured), assistant professor at Nihon University’s College of Economics. He touched on not only the protracted legislative wrangling which has characterised Japan’s attempt to enter the large-scale gaming industry, but also the cultural approach to gambling in his country. “There is a kind of

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CASINO RESORT

Updates from Macau’s potential rivals

taboo related to gaming in Japan,” he said, but noted that both horse racing and pachinko remain intensely popular.

However, constant setbacks in the country’s parliament has left Dr Sasaki unwilling to commit on a roadmap for the future of Japanese casinos. He characterised the government as “taking three steps forward and two steps back,” on the long road to legislation. And, as if to prove the wisdom of his pessimism, in the weeks since his comments, the Japanese prime minister has dissolved parliament, effectively pushing back casinos laws until late 2015 at the earliest.

The picture in Taiwan, however, was more positive, as Dr Day-Lang Yui of the Center for the Study of Lottery and Commercial Gaming at the National Taiwan University of Science

LVS veteran to head up Saipan development NORTHERN MARIANA ISLANDS

ong Kong-listed gaming investor Imperial Pacific International Holdings has announced the appointment of veteran casino executive Mark Brown (pictured) as president and chief executive of the company’s Saipan casino resort project.

Brown’s past experience includes opening and operating one of the largest casino resort projects in history, as president of all Las Vegas Sands Corporation’s (LVS) Macau properties - which includes the Venetian, Four Seasons and Sands Macau - and serving as president and chief executive officer of Trump Entertainment Resorts.

As a chief executive with a career working directly for prominent gaming figureheads, Imperial Pacific said Brown is “uniquely qualified” to head up the group’s $7.1bn (E5.7bn) casino resort project on the island of Saipan, part of the Northern Mariana Islands in the Pacific.

In September, Imperial Pacific outlined its plans for the casino resort on Saipan, saying it expects the first phase of the scheme to be completed by 2016. The large-scale “town hotel” development is expected to include a casino with 1,600 gaming tables and 3,500 s l o t machines, while providing about 4,250 rooms and 300 luxury villas for guests.

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and Technology explained. He suggested that casinos legislation could be a major tentpole of the upcoming elections and he expected a draft law to be discussed during December 2014. This created the “optimistic possibility for casino law to be passed in the first half of 2015.”

Taiwan’s individual islands have the right to decide for themselves whether they will allow casinos on their land. A 2009 referendum on Penghu island ruled against the creation of local casinos, while the Matsu islands voted 57 percent in favour in 2012.

The success of Taiwan’s casino venture will hinge, Dr Yui suggested, on the reaction of Beijing, which may not be receptive to the idea. Just like Macau, Taiwan will depend largely on tourists from mainland China to

power its gaming industry and the issue of travel visas may yet be a sticky one.

Finally, Eugene Christiansen, founder and chairman of Christiansen Capital Advisors, explained how developments in neighbouring Japan and Taiwan would affect the future of Macau. “The Macau market is clearly going through a phase of transition,” he said, “it is leaving its initial phase of grossly undersupplied market conditions, which allowed the operators in this market to record enormous growth.” He also suggested that while the establishment of rival markets would not unduly rock the boat in Macau, their presence would contribute to the fact that companies with high debt and low equity are less appropriate for Macau that they may have been in previous years.

CONSTRUCTION

Aquis development in jeopardy following delays AUSTRALIA

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he future of the planned Aquis Great Barrier Reef Resort project in northern Queensland, Australia, could be in jeopardy, with developer Tony Fung blaming the Office of Liquor, Gaming and Racing state regulator for delays.

Fung has penned an open letter declaring that he will have to make some “difficult decisions” about the proposed megaresort following the failure of his bid for the nearby Reef Hotel

Casino in Cairns with the whole project now undergoing a “comprehensive review”.

The billionaire, who wants to

12 | casinoreview December 2014

own an Australian casino before the end of the year so that he can list his Aquis Group concern on the Hong Kong Stock Exchange in 2016, recently walked away from the deal to purchase the existing Cairns casino for up to A$219m (E176m). This would have subsequently enabled his firm to raise cash for the planned A$8bn (E5.7bn) Aquis Great Barrier Reef Resort project, which is due to be built on 340ha of land at Yorkeys Knob just north of Cairns.

However, Fung also con-

firmed that his firm is in talks to purchase Casino Canberra in the Australian Capital Territory (ACT) and has been “assured” by local authorities that the transaction will be completed “shortly”.

For his part, Queensland premier Campbell Newman stated that the government would not be bullied into bypassing probity checks and that the Queensland regulator is now working “hand in glove” with its ACT counterpart.

“This government will not be pushed into any situation

where we don’t have total confidence in those who are seeking to run a casino in this state,” said Newman. “This government will always do the right thing in terms of the awarding of a casino licence or the awarding of a transfer of a licence.

“We are absolutely committed to making sure that, if casinos are run in this state, they are run cleanly, by respected, reputable, business interests. It is important that all people wishing to invest in casinos submit to the process.”

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CR146-p14-15-Africa_Coinslot NEW 11/12/2014 10:09 Page 1

News

Africa & Middle East

MARKETS

The latest research document from finance and consultancy experts Price Waterhouse Coopers predicts sustained growth in gross gambling revenues throughout South Africa, Nigeria and Kenya.

SOUTH AFRICA

PwC forecasts triumvirate of African growth

G

ambling industry specialists at Price Waterhouse Coopers (PwC) have issued their third assessment of the African gambling market. Headed by Johannesburg-based partner and gambling industry leader Nikki Forster, Raising the Stakes in Africa paints a country-by-country landscape of both the current and future makeup of the continent’s casino industry.

According to the report, South Africa remains by far the dominant player within the region: in 2013 its 37 landed licensed casinos generated revenue of $1.6bn (E1.3bn), com-

14 | casinoreview December 2014

pared with $40m (E32.5m) and $18m (E14.6m) in Nigeria and Kenya respectively. Of late, South African gross gaming revenue (GGR) growth has been muted (just 0.6 per cent last year), and PwC forecast this will remain the case in the near future: a product of rising payout rates and a receding economy. With this in mind, combined with the high level of saturation within the country (38 casino licences have been issued out of a legal maximum of 40), the firm considers the opening of new venues unlikely.

However, upgrades and develop-

ments at existing resorts (such as Sun International’s bid to relocate its Morula Sun casino to Menlyn) will, the firm predicts, steer the sector towards a modest but steady growth of 3.9 per cent over the next four years.

Whilst the Nigerian market pales in size when compared to its South African counterpart, its economic prospects seem rosy: last year saw GGR rocket by over 19 per cent year-onyear. The country’s rising prominence as a destination for international business and tourism was only briefly slowed by the current outbreak of ebola

sweeping West Africa, with swift eradication of all trace of the disease within the country’s borders. PwC forecasts fallout from the crisis will nevertheless slow Nigerian GGR in 2015, with strong performance of the wider economy (exhibiting average annual GDP growth of over 7 per cent since 2009) buoying the sector’s growth to 7.8 per cent by 2018.

Meanwhile, the operating environment of Kenyan casinos has grown more challenging in recent years, with internal security placed in jeopardy by Somali-based Islamic terrorist cell al-Shabab, com-

bined with a 2013 Finance Act imposing 20 per cent tax on all gambling winnings. As such, PwC predict a slowdown in GGR growth-rate to 4.1 per cent for 2015 (down from 4.9 per cent this year). That said, Kenya’s economy retains resolute rates of growth and PwC predict that GGR growth will average 6.8 per cent on a compound annual basis to $25.6m (E20.8m) in 2018.

In total, the report places the 2018 worth of the combined South African, Nigerian and Kenyan casino sectors at $2bn (E1.63bn), a growth across the board of 4.7 per cent.

CR146-p14-15-Africa_Coinslot NEW 11/12/2014 10:10 Page 2

NIGERIA / SOUTH AFRICA YXYXYXY Macao Gaming Show November 17-19 2015

MACAO GAMING SHOW 2014: ‘THE SHOW FLOOR WENT BEYOND JUST GAMING. WE HAVE A BROADER EXHIBITOR BASE SHOWCASING TOP GAMING AND NON-GAMING PRODUCTS AND SERVICES...’ WWW.MACAOGAMINGSHOW.COM INVESTMENT

Tsogo Sun bolsters casino development amid South African slowdown SOUTH AFRICA

outh African gaming and hotelier group Tsogo Sun has unveiled plans to reinvest $446m (E362m) towards its casino development in the coming years, despite a lull in short-term growth.

The figure represents 17 per cent of the company’s market capitalisation - indicative of the confidence Tsogo executives are placing on its longer-term prospects.

A South African economy in decline since 2011 has formed the backdrop of a struggling domestic customer demographic. Interim results up to September show that the company’s gaming revenue is up 2 per cent on last year, with takings on room bookings also slowing.

Tsogo CEO Marcel von Aulock was keen to reassure shareholders following the release of the latest financials. “Our machine is still sound and generating cash,” he stated. “We are happy to spend on our structures knowing that when trad-

S

ing conditions turn, they will turn strongly.”

Von Aulock went on to detail how approximately half of the newly allocated funds would be directed towards the upgrade of two of the company’s flagship resorts: the SunCoat casino in Durban and the Gold Reef City casino in Johannesburg. The remaining $200m (E163m) would be used in the acquisition of Cape Town Sun International subsidiary Sunwest International.

AFRICA & MIDDLE EAST ROUND-UP n South Africa, professional poker player Dylan Wilkerson outlasted 165 others last month to win the World Poker Tour (WPT) Emperors Palace Poker Classic and its $147,509 (E118,637) top prize.

The event held at the Emperors Palace Hotel Casino in Johannesburg generated a total prize pool of $475,836 (E382,683) and saw the American triumph after going heads-up against local amateur Richard Barnard.

Elsewhere, sportsbetting professionals from around the world will soon be heading to Nigeria in order to participate in the Sports Betting West Africa 2015 exhibition, which is set to take place from March 2-4 at the Eko Hotel and Suites in Lagos.

I

DIVESTURE

The reinvention of Sun International SPOTLIGHT: NIGERIA ast year PwC forecast a 2014 growth in year-onyear Nigerian GGR of 9.7 per cent. The country wildly outperformed this expectation: seeing a 19.4 per cent increase.

The firm attributes this leap both to wider economic factors, as well as extended opening hours and additional slots at the Federal Palace hotel and casino in Lagos.

The fact that the contribution of a single venue can have such a drastic impact on national GGR highlights the developing state of the Nigerian sector: the country currently operates just three legally licensed casinos.

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SOUTH AFRICA

S

eptember saw Sun International take what amounted to a drastic change in direction.

Facing low hotel occupancy, negligible growth in gaming revenues and a demand for continued investment in the upkeep and operation of its resort portfolio, the South African operator announced it would be selling the bulk of its African interests in an aggressive attempt to lower its cost base. It’s latest analysis places the amount saved somewhere in the region of $28m (E21m), or approximately 3 per cent of the company’s total revenue.

While the freed assets alone are helpful, the company also aims to maximise the earning potential of its future investment. Its action plan will direct funds away

from higher-risk, lowerreturn investments and back into more stable ventures.

Therein lies the logic behind the sale of holdings in lower growth African territories.

Then again, at home, Sun is bound by a restrictive national limit on the number of available casino licences.

And this has prompted another change in tack. With the South African gambling market close to the point of saturation, it is actively seeking to diversity the nature of

its revenue streams away from gambling in a number of its existing domestic resorts.

Off the continent, Sun’s focus seems to remain predominately within landed casino revenue, and its proposed $116m (E94m) buyout of its partners in the Monticello Grand Casino in Chile, as well as significant recent investment in both Panamanian and Columbian venues are all indicative of the company stretching its wings in other developing markets.

Being sponsored by sportsbetting platform developer iSolutions Sportsbook Software, the event will see exhibitors including Meridian Gaming, Betradar, Goldbet, and Supabets Gaming Group showing off their latest wares to visitors from across Africa.

Finally, the skyline of Dubai is set to get even more crowded after Hard Rock International announced plans to open its first hotel in the Middle East in partnership with investment firm Abu Dhabi Financial Group and developer Sheffield Holdings.

With 101 floors, the Hard Rock Hotel Dubai Marina will be the second tallest structure in the emirate when it opens next year in the Marina 101 development near Jumeirah Beach. Featuring 281 rooms spread over the first 33 floors, the high-rise is to also house a new club lounge and dining establishment in its penthouse complemented by ‘the brand’s signature world-class entertainment’.

December 2014 casinoreview

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CR146-p16-18-NAmerica_Coinslot NEW 11/12/2014 10:16 Page 1

News

North America

RESTRUCTURE

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Foxwoods’ incoming chief executive has embarked on a bold strategy, as the group adapts to fierce competition in the Northeastern US.

UNITED STATES

Incoming Foxwoods CEO implements bold strategy he Mashantucket Pequot Tribal Nation, owner of Foxwoods Resort Casino in Connecticut, has announced the appointment of Felix Rappaport to the position of president and CEO. Rappaport has more than 34 years of hospitality, gaming and entertainment experience, having provided leadership expertise at major resort gaming operations throughout the country. He started his tenure at Foxwoods last February as senior vice president and chief operating officer.

The industry veteran has been part of the senior management team responsible for bringing in new partners to expand the full resort experience for guests, including new attractions, nightclubs, restaurants and the Tanger Outlets, which is expected to open in May 2015.

Now, after taking his position at the helm of largest casino resort in North Amer-

16 | casinoreview December 2014

ica, Rappaport has outlined his plan for the future, which focuses increasingly on entertainment and non-gaming aspects.

Over the coming months, Foxwoods is set to reduce the number of slot machines and table games across the property to free up space for nightclubs and other new attractions as it adapts to fierce competition, the new CEO said in an interview with The Associated Press.

It’s a transition that Rappaport says probably should have started years earlier, and one that reflects a decline in the number of people gambling inside the Foxwoods Resort Casino on a given day.

The sprawling Foxwoods resort currently has 5,800 slot machines and 350 table games spread across six casinos.

According to reports, Rappaport is looking to reduce this to 4,800 slot machines

KICKSTARTER rior to the economic crash of 2008, Foxwoods Resort Casino housed 6,300 slot machines and 380 table games. The decline in gaming revenues has yet to be reversed, and now the resort is positioning itself to endure competition that is expected only to intensify in coming years, with as many as three casinos in Massachusetts. While Rappaport has outlined a strategy that focuses squarely on bolstering the resort’s entertainment offer, gaming remains a core part of the business, and one that is not being overlooked. In November, Foxwoods announced plans to redevelop its Rainmaker Casino in order to create “more exciting and dynamic experiences” for its guests. During the transition phase of this redevelopment, some areas of the Rainmaker Casino will remain open, including a newly created non-smoking slot area consisting of approximately 500 slot machines, as well as the Asian and domestic table games, racebook, poker room, tournament poker tables and tournament slot machines.

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and 250 table games.

Rappaport has worked for many of the world’s largest and most well known names in the hospitality industry, including Station Casinos, Hershey Entertainment and Resort Company and Steve Wynn’s Mirage and Treasure Island.

Foxwoods itself has had a strong entertainment footprint for more than two decades, hosting more of the world’s leading performers than any other property. Rappaport, who has worked with numerous entertainment acts throughout his career, including Criss Angel, Earth Wind and Fire, The Beach Boys, Jay Leno, Carrot Top, Rita Rudner, Terry Fator, Ray Romano and Kevin James, will create new opportunities for Foxwoods through his contacts in the industry, the group stated.

“Throughout my career, my philosophy has been on shared leadership,” said Rap-

CR146-p16-18-NAmerica_Coinslot NEW 11/12/2014 10:23 Page 2

YXYXYXY UNITED STATES Macao Gaming Show November 17-19 2015

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NORTH AMERICA ROUND-UP

CASINO LICENCE

Philadelphia awards second casino licence

UNITED STATES

he Cordish Companies and Greenwood Gaming and Entertainment have been awarded a Category Two gaming licence for their proposed $425m (E342.7m) Live! Hotel and Casino Philadelphia project by the Pennsylvania Gaming Control Board.

The 200,000-square-foot hotel, gaming and entertainment venue, which will be the second such destination in the nation’s fifth largest city, will be located on the site of the existing Stadium Holiday Inn in the heart of the city’s Stadium District featuring a Las Vegas-style casino floor with 2,000 slots and 125 table games alongside an

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O y

ast month saw voters in Colorado overwhelmingly defeat a proposed amendment to the state’s constitution that would have seen Arapahoe Park Racetrack on the outskirts of Denver permitted to offer casino gaming.

Amendment 68 would have also authorised Pueblo County and Mesa County to transform existing sites into casinos over the next five years with proponents claiming that the measure would bring in $114m (E92m) a year to help fund education programmes in the western state.

In Florida, a gambling cruise operator that sailed twice a day from Palm Beach has filed for federal Chapter 11 bankruptcy after reportedly losing $1m (E807,786) in May following the failure of its sole ship’s starboard main engine.

The Island Breeze Casino was idle for three weeks as

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upscale 240-room boutique hotel and 2,500-space parking garage.

“We’re very excited and honoured to have been selected by the Pennsylvania Gaming Control Board and thank it for its consideration during a very fair, transparent and thorough process,” said Joe Weinberg, managing partner for The Cordish Companies.

“We look forward to working with state and local officials, mayor Michael Nutter and the entire community as we move forward with development of a true world-class destination that will attract people from throughout the region for a unique sports, dining, gaming and entertainment experience that can’t be found anywhere else in the

country.”

Situated off Interstates 76 and 95, Live! Hotel and Casino Philadelphia is projected to generate approximately $400m (E322.6m) in economic benefits during construction including the creation of some 3,000 jobs. When completed, the project is expected to attract four million visitors a year to the area and bring in annual gross gaming revenues of over $300m (E241.8m).

“We are very appreciative of the tremendous community support we have enjoyed on our proposal and I can guarantee we will be excellent neighbours and corporate citizens for the city and state,” said David Cordish, chairman for The Cordish Companies.

CLOSURE paport. “I truly believe that collectively we must unlock the full potential of the more than 5,000 team members to ensure that each and every guest truly experiences the greatest resort destination in North America.”

Backing the CEO’s strategy, Mashantucket Pequot Tribal Chairman, Rodney Butler, said: “Felix has an incredibly extensive background, and his expertise is unmatched in the industry.

His vision has been the driving force behind our master plan, which is to provide an enhanced resort experience for all our guests.”

When Foxwoods opened in 1992, it became one of the most famous brands in all of gaming, resorts, and entertainment. The property currently sees nine million visitors each year, with an anticipated additional four to five million visitors with the opening of the Tanger Outlets.

Trump Taj Mahal facing closure UNITED STATES

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ankrupt and struggling with a union dispute, Trump Entertainment Resorts has ceased issuing credit to gamblers and is preparing to close its iconic Trump Taj Mahal Casino Resort in Atlantic City.

The US casino operator received formal permission from the New Jersey Division of Gaming Enforcement to shutter its last remaining casino on December 12 and the venue could become the fifth to close this year following Revel Atlantic City, The Atlantic Club Casino Hotel, Showboat Atlantic City and Trump Plaza Hotel and Casino.

Trump Entertainment wants to hand itself over to American businessman Carl Icahn in return for the billionaire investor cancelling the $286m (E232.4m) in company debt he owns. The 78-yearold would then be willing to invest $100m (E81.2m) into the property if Local 54 of the Unite-Here union drops an appeal over an earlier court decision on worker benefits.

In October, US bankruptcy judge Kevin Gross approved a plan from Trump Entertainment that would see the operator swap union pensions with 401(k) plans and cease payments to a union-run

health fund. But the union immediately appealed the decision, which would reportedly save the operator $14.6m (E11.8m) a year, and has since publicly protested against Icahn, who owns the nearby Tropicana Casino and Resort, describing him as a union-buster determined to destroy worker benefits.

In reply, Icahn penned an open letter to Local 54 president, Bob McDevitt, stating that he would agree to an arrangement restoring health benefits for at least two years and work to create a new pension plan if the union withdrew its appeal and committed to ‘labour peace’.

repairs were made and subsequently delayed a mandatory US Coast Guard ship inspection, which led to it losing its seaworthiness certificate for the lucrative summer months.

Majority owned by IBI Palm Beach, the enterprise now owes about $5.2m (E4.2m) and recently defaulted on a $1.5m (E1.2m) loan from slots leasing firm SourcePoint.

However, the news is much better north of the border with the Hard Rock Casino Vancouver and the Vancouver Canadians minor league baseball team signing a multi-year partnership that will see the venue lend its name to an area of the club’s Scotiabank Field At The Nat Bailey Stadium.

The new Hard Rock Casino Vancouver Barbeque Picnic In The Park area is to be unveiled down the first base line in June and will accommodate groups of up to 400 people as they enjoy an allyou-can-eat buffet.

December 2014 casinoreview

| 17

CR146-p16-18-NAmerica_Coinslot NEW 11/12/2014 10:15 Page 3

News

North America

Macao Gaming Show November 17-19 2015

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EXPANSION

Once struggling Atlantic City casino, the Resorts Casino Hotel, is bucking the closure trend by planning to build 12,000sq.ft of new conference space.

POKER

Resorts Casino Hotel unveils $9.4m expansion

California to consider new online poker legislation

egislation has been introduced in the California State Assembly that could see the western American state legalise and regulate online poker as early as next year.

Known as AB9 and submitted by Democrat assemblyman Mike Gatto, the proposed bill is similar to a measure introduced but ultimately withdrawn by outgoing California State Senator Lou Correa earlier in the year.

Gatto stated that the leg-

rooms and contain a ‘bad actor’ clause designed to exclude operators and individuals involved in US-facing sites after December 31, 2006.

Gatto declared that AB9 would also adopt ‘a number of established business practices’ from the worlds of banking and eCommerce in addition to the California Lottery designed to prevent illegal activities ‘that could arise in the operation of online poker websites’ while ensuring bricks-andmortar gaming and hospitality establishments ‘maintain or even increase

islation would establish a regulatory structure to provide participants, from players to operators, with “certainty and security that will legitimise the game, support locally owned businesses and keep much needed revenue in the state”.

“The status quo is a lost opportunity,” said Gatto, who represents the 43rd California State Assembly district just north of Los Angeles. “California could receive significant revenue for merely regulating and legitimising an industry that Californians already participate in but send their dollars overseas.”

AB9 would limit licences to tribal casinos and card

foot traffic’.

To limit underage gaming and discourage criminals, Gatto’s legislation would additionally require players to open online accounts in person using two forms of identification while large or frequent cash-outs would warrant an appearance in the flesh.

“California has led the world in computer and Internet innovation, and there is no good reason why we can’t continue to lead with a sensible online poker framework,” said 40-yearold Gatto. “AB 9 borrows from time tested business practices that will improve our government finances and keep our money in our home state.”

UNITED STATES

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UNITED STATES

espite a turbulent local market which has seen four of the 12 casinos in Atlantic City close this year with a fifth due to shut later in the month, the operator behind Resorts Casino Hotel is planning to spend some $9.4m (E7.6m) to expand the venue’s convention and meeting space facilities.

Majority-owned by local real estate developer Morris Bailey, who turned the running of the property over to Mohegan Gaming Advisors in 2012, the iconic Resorts Casino Hotel has been around since 1978 and was the nation’s first hotel casino to be located outside of Nevada. The venue added the 27-storey Rendezvous Tower in 2004 before undergoing further renovations seven years later to install a ‘roaring 20s’ theme. It grew even further in 2013 with the opening of a Jimmy Buffettthemed Margaritaville restaurant,

D

bar and entertainment complex and now plans to add an additional 12,000sq.ft of new space in hopes of attracting a larger share of the conventions market.

The construction project, which will also include renovations to hotel room bathrooms in the property’s Ocean Tower, is expected to start during the first quarter of 2015 and will finish later in the summer with Resorts Casino Hotel offering more than 64,000sq.ft of total meeting and event space via 27 occasional rooms.

“This conference centre expansion is the latest example of the company’s reinvestment in the property and Atlantic City as a whole as we continue to strategise ways to revive and turnaround this market,” said Bailey.

“From the growing demand for additional conference space from a new niche audience to the increasing

popularity of Margaritaville, Resorts Casino Hotel is showing a positive return on investment as a successful destination location on the east coast.”

The expansion is further proof in the turnaround of a casino that nearly went bust in 2009 and was subsequently considered one of the city’s most vulnerable. For the first three months of the year, Resorts Casino Hotel posted a gross operating profit of nearly $4.5m (E3.6m) compared to a loss of $6.6m (E5.3m) for the corresponding period in 2013.

“This expansion plan furthers the repositioning of Resorts Casino Hotel as the company continues to make smart investments that will transform the property into a more vibrant and profitable destination with offerings beyond casino gambling,” said Mark Giannantonio, president and CEO for Resorts Casino Hotel.

LAND HOLDINGS

Station Casinos selling Reno land parcel UNITED STATES

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evada entertainment and casino operator Station Casinos has announced that it will be selling off a large chunk of its land holdings near Reno while retaining a nearby plot where a long-planned casino has yet to be built.

Las Vegas-based Station Casinos disclosed the pending sale of 101 acres of mostly flat land in the southeast quadrant of the city to an unidentified buyer in its latest quarterly earnings report but has since declined to elaborate on the transaction or identify the buyer.

“I can confirm an agreement to sell a 101-acre property on South Virginia Street,” said Lori Nelson

from Station Casinos, which owns and operates 16 casinos in Nevada.

With visions of a casino on the site, Station Casinos bought the land from Las Vegas gaming and restaurant entrepreneur Blake Sartini in 2005 for $15.1m (E12.1m).

However, it soon transferred the site’s gaming licence to a nearby 88-acre parcel on the south side of

18 | casinoreview December 2014

the Mount Rose Highway across from The Summit shopping centre, which it is still hoping to develop.

“In September 2014, the company entered into an agreement to sell approximately 101 acres of land held for development in Reno, Nevada, for approximately $2m (E1.6m) and recognised an impairment loss of $11.7m (E9.4m) to write down the carrying amount of the land to its fair value less cost to sell,” read the statement from Station Casinos.

“The impairment loss is included in impairment of other assets in the condensed consolidated statements of operations.

The company expects to complete the sale of the land in the fourth quarter of 2014.”

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News

South & Central America

LEGISLATION

The newly proposed Federal Betting and Lottery Act in Mexico would establish new National Institute of Gaming and Raffles regulator, while raising casino entry age to 21.

Mexican gambling legislat passes first hurdle

P MEXICO

roposed legislation that would change the way all forms of gambling in Mexico are governed has passed its first hurdle after recently being approved by the Chamber of Deputies.

The new Federal Betting and Lottery Act is the product of a special elevenmember committee first convened in April of 2013 and tasked with updating the nation’s gambling regulations following growing reports of corruption and allegations that former members the Interior Sec-

20 | casinoreview December 2014

retariat had trafficked licences.

The measure was passed by the lower legislative house in Mexico City earlier this month by a vote of 297 in favour versus 34 against with 17 abstentions and will now head to the 128-member Senate for consideration.

Should it subsequently also receive the assent of president Enrique Pena Nieto, the planned Act would replace existing regulations that date back to 1947 and task the head of the

Interior Secretariat, Miguel Angel Osorio Chong, with naming a boss for a new National Institute of Gaming and Raffles. This regulator would be responsible for the licensing and inspection of all gaming establishments including casinos, racetracks and sportsbooks.

Another measure contained in the legislation would see the minimum casino entry age raised from 18 to 21 while additionally ending the controversial practice of ‘umbrella

licences’ that currently see operators permitted to run a number of venues utilising only one licence.

The Act would also impose heavy fines on those found to be breaking the law including jail sentences of up to five years for operators convicted of running illegal gambling establishments. There would also be steep penalties for players found to be knowingly gambling in a clandestine operation while the current practice of licensing miniature casinos with less than

30 machines is also set to be forbidden.

A number of last-minute developments saw the proposed legislation changed so that all new casino licences would be valid for only twelve years with subsequent extensions legitimate for a further decade.

This move could cause disappointment among operators with some arguing that licences that were valid for up to 20 years followed with similar extension periods would help to encourage large-scale foreign invest-

CR146-p20-21-SAmerica_Coinslot NEW 11/12/2014 10:31 Page 2

BAHAMAS / COSTA RICA YXYXYXY / MEXICO Macao Gaming Show November 17-19 2015

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SOUTH AMERICA ROUND-UP

STAFF TRAINING

new casino planned for the Mexican northern border town of Ciudad Juarez is hoping to appeal to American gamblers by offering a range of high-stakes poker and table games.

Although the venue, which is being dubbed Room 802 and will be about a 15-minute drive from El Paso, Texas, will be one of seven casinos in the town, it is to be the only one to offer poker along with a special VIP room for high-stakes players.

Meanwhile in Chile, the government has extended the licences of seven state-owned casinos by another two years to give municipalities until the end of 2017 to find a private buyer.

Chile is currently in the process of deregulating its gambling market while 2005 legislation also authorised the construction of 18

A

Crystal Palace to serve as Baha Mar training facility BAHAMAS

aha Mar, the operator behind the $3.5bn (E2.8bn) destination casino resort currently under construction on Cable Beach near Nassau, has converted the nearby Crystal Palace Hotel to serve as a training facility for its future employees.

The giant new development broke ground in February of 2011 and is expected to open around June using the Crystal Palace Hotel site as a live training ground for more than 1,400 future employees.

“Approximately 100 Crystal Palace employees have already been invited to accept new positions at the Melia Nassau Beach Hotel and Baha Mar,”

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slation

read a statement from Baha Mar, which is the brainchild of entrepreneur Sarkis Izmirlian.

“More than 350 new casino employees have been in training classes at the Crystal Palace since July and will complement the existing casino staff.”

Being built by China State Construction Engineering with funding from the Asian nation’s state bank, the new casino resort five miles from the centre of Nassau and six from Lynden Pindling International Airport will include 2,200 hotel rooms, a nightclub designed by musician Lenny Kravitz and luxury condominiums priced as high as $12m (E9.6m). Being fashioned as a competitor to the nearby Atlantis Paradise Island, the development will additionally feature a 100,000-

square-foot casino and the 18hole Jack Nicklaus Signature Golf Course.

“All Baha Mar employees are being held to the highest standards of performance and service that will distinguish Baha Mar as a global destination resort,” read the statement from Baha Mar. “We offered extensive additional training to all Crystal Palace employees to educate them to the luxury service standards that will be key to the new Baha Mar brand and image. We’re further investing in training literally thousands of future employees at the Crystal Palace facility and we encourage all current and potential Baha Mar employees to strive for growth and professional development.”

CLOSURES

Costa Rica hit by casino closures ment in the sector.

“The Interior Secretariat and members of the Chamber of Deputies have agreed to fast-track the issue, which will allow for new modern legislation with clear and transparent rules that fit in with the country’s current needs and generates certainty for those who take part in this activity,” said Chong.

“It does so by replacing the Federal Betting and Raffles Law, which dates back to 1947 and is now obsolete.”

COSTA RICA

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igh operating costs have forced two gaming venues to close their doors in the Costa Rican capital, San José.

According to local news reports, the closure of the Casino Europa facilities, located in the now-closed Hotel Europa and the Radisson Hotel, have left 200 people out of work.

The Hotel Europa will pay the outstanding payrolls of the former employees left jobless after the sudden closure of the hotel, Minister of Labour, Victor Morales, said after a meeting with hotel representatives.

However, the lawyer representing the hotel, Hugo Navas, admitted that the hotel does not

have all the necessary funds to pay the holiday bonuses and may need to take a bank loan to cover the cost.

Navas said a $182,000 (E146,000) electricity bill made it difficult for the company to continue operating the hotel and two casinos, which culminated in the decision to shut down the operation.

The Europa Hotel and Casino Europa ventures were owned by entrepreneur Luis Milanés, who will be going on trial for an unrelated fraud charge in July 2015. In September, another Milanés property, the Royal Dutch Hotel and Casino, shut its doors in the capital.

additional casinos. But, local authorities that operate their own venues objected to the December 31, 2015 hand-over deadline with last month’s extension designed to give these boroughs more time to locate additional sources of funding.

Also in South America, the Ministry of Finance and Economy in Uruguay is in trouble after revealing that it has paid $334,728 (E272,334) over the last year to rent an empty building for the purposes of housing its state casino regulator.

The high-rise in Montevideo was reportedly rented on November 28, 2013, at a cost of $33,810 (E27,503) per month and has yet to be equipped or used by the Department of State Casinos while the rent for the regulator’s current headquarters comes in at a lower $20,140 (E16,383) per month.

December 2014 casinoreview

| 21

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MARKETS

Tip of the iceberg: China’s rising middle class

A

China’s market potential will serve Macau for many years to come, writes James Walker.

t the 2014 edition of the Macao Gaming Show last month, amid talk that Macau was set to report its lowest monthly revenue since 2012, one exhibitor laid out a simple list of numbers: “When you look at Macau, the SAR welcomed 30 million visitors last year, 80 per cent of whom were from Mainland China.

Although this figure is high, there are 1.3 billion people in Mainland China, so only a small percentage of people are coming to play at this time.”

Despite the recent reports on Macau’s performance, the growth potential of the

Chinese market is staggering. From 1995 to 2005, the population of China’s middle class - defined as households with annual incomes ranging from $6,000 to $25,000 grew from close to zero in 1995 to an estimated 87m in 2005, according to MasterCard Worldwide, Asia Pacific.

China’s middle class will jump to 340m by 2016. The purchasing power - disposable income minus savings - of China’s middle class is also growing. In 2006, around 39 per cent of urban households were middle class. By 2016, that percentage will likely rise to 60 per cent.

According to a market report in China Business Review, the middle class accounts for 27 per cent of China’s total urban disposable income. By 2015, that percentage is expected to rise to more than 40 per cent. “Considering its swelling numbers, purchasing power, and trajectory, China’s middle class presents marketing opportunities that companies cannot afford to miss,” the report’s authors, Kheehong Song and Allison Cui, said.

As International Casino Review went to press, reports emerged that consumer prices in China eased to a five-year low in November. The figures are the latest in a string of government data that showed a deeper-than-expected slowdown in the Chinese economy.

However, although over recent weeks China has proved itself susceptible to market forces, the country’s long-term growth is all but assured - and this will translate into added revenues for Macau.

Stiff competition is being handed out by other ‘Big Leisure’ sectors in China, such as theme parks and family entertainment centres. Rival casino operations elsewhere in Asia are also getting better at pulling consumers away. But the next wave of major casino resort projects on Cotai over the coming years should ensure long-term stability in what remains the world’s largest gambling market.

“The new global middle class in China, India and Brazil have propelled their economies to equal the size of the industrialised G7 countries,” said Linda Yueh, chief business correspondent at the BBC. “By 2050, they are forecast to account for nearly half of world output, far surpassing the G7.”

MEDIA WATCH

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As Macau looks to diversify its economy away from a reliance on gambling, government officials are struggling to spend millions of dollars in tax collected from casinos while a man in Las Vegas has pledged to donate a recent slot win of over $14m to charity.

24 | casinoreview December 2014

espite collecting record amounts of tax from casinos over the past four years, officials in Macau are increasingly failing to spend these funds subsequently budgeted for improvements to education, roads, bridges, ports and public transport, reports the Macau Business Daily.

Over the first 10 months of the year, officials have spent a mere 14.2 per cent, or $263m (E212.7m), of the $1.85bn (E1.49bn) collected from gambling establishments in tax, while the figure comes to only 39.6 per cent for the whole of the last decade.

From 2011 to 2013, Macau saw gaming tax rates rise by 40 per cent from $11.77bn (E9.51bn) to $15.78bn (E12.76bn) while officials have consequently failed to spend some $3.41bn (E2.75bn) in budgeted Public Investment Plan funds between 2009 and 2013.

The news comes as Beijing urged Macau to cut its focus on casinos, which now employ more than half of the former Portuguese colony’s population of 624,000. According to a story from The Telegraph, the city has therefore begun a

Macau business, daily

strategy that will see it follow the lead of Las Vegas and concentrate on constructing more family-oriented entertainment facilities while celebrities including David Beckham have been signed up to serve as ‘regional ambassadors’.

Finally, a piece in the Las Vegas Sun has detailed how a man that recently won over $14.28m (E11.54m) thanks to a

$20 (E16.17) wager on a Rampart Casino slot machine plans to donate the funds to charity and his church.

The unnamed player was visiting Las Vegas with a friend when he hit the multimillion windfall thanks to the Megabucks slot and now plans to help his church, which has been holding services in a high school gymnasium, construct it own bespoke venue.

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CR146-p26-37-MGS previewG_Coinslot NEW 11/12/2014 10:53 Page 1

Review

MGS 2014

MACAO GAMING SHOW 2014

MGS looks to the future wit ambition and confidence

T As the Macao Gaming Show sets about the task of establishing itself as the leading gaming industry trade show in Asia, the organisers of the event have reported a near 40 per cent increase in visitors in 2014.

26 | casinoreview December 2014

he second edition of the Macao Gaming Show (MGS), which attracted an international audience of C-Level gaming professionals to the Venetian Macao on November 18-20, has been declared a major success with all key performance indicators (KPI) utilised by the organisers showing a positive year-on-year trend.

The attendance figure jumped from 8,634 in 2013 to 11,987, an increase of 39 per cent. The number of exhibiting companies rose 30 per cent to 146, and the number of exhibiting countries represented at MGS jumped from 11 to 20.

MGS opened in style with an address by Jay Chun, chairman of the Macau Gaming Equipment Manufacturers Association (MGEMA), the organiser of the show. The opening ceremony was attended by international gaming community and members of the world’s media.

Besides MGEMA, officiating guests from show co-organisers, supporting organisations and diamond sponsors graced the opening ceremony. And it was an impressive list including Gaming Inspection and Coordination Bureau (DICJ), Macao Trade and Investment Promotion Institute (IPIM), Macao Foundation, Macau Government Tourist Office (MGTO), General Association of Administrators and Promoters for Macau Gaming Industry, Associao de Mediadores de Jogos e Entretenimento de Macau, Macau Jockey

Club, Macau Slot, Macau (Yat Yuen) Canidrome Company, and representatives from all six gaming concessionaires of Macau.

Chun believes that the success of MGS has sent out a clear message to the international gaming community. He stated: “Gaming professionals from throughout the world as well as from the domestic industry here in Macao took the opportunity to visit our exhibitors, to network with industry colleagues, and to listen to the key note speakers we assembled as part of the colocated Macao Gaming Summit which debated key topics impacting gaming in Asia. The show floor went beyond just gaming. We have a broader exhibitor base showcasing top gaming and non-gaming products and services, even luxury cars, including one worth HK$30m (E3.1m).

“Our international guests who came to Macau have witnessed the tremendously exciting projects that are taking place here.

They saw at first hand the economic development of the city, which has been made possible through the support of the government. I am delighted that MGS has been able to play a part in assisting international gaming delegates to understand the dynamics of the city and the uniquely progressive vision of our government.”

In addition to the action on the show floor, MGS 2014 included an expanded conference programme that tackled the indus-

try’s most pressing issues. More than 30 gaming industry leaders provided a unique insight to the future of gaming in Asia during the three-day programme, with a particular focus on established and emerging jurisdictions, including Japan, Laos, Cambodia, Vietnam, Korea and Sri Lanka, as well as Macau.

Chun continued: “Our survey showed that over 96 per cent of attendees are likely to return to MGS in 2015 and that 94 per cent would recommend MGS to work colleagues or industry peers. Based on these findings and other show statistics, it is clear that MGS has built on the momentum generated following its launch in 2013 when many similar events struggle in their second year. We are now busy preparing for year three and putting an ambitious but deliverable strategy in place to take Asia’s number-one gaming exhibition to the next level.

“On a personal note I am very grateful for the hard work of our organising team, for the contributions made by the MGS supporting organisations, to our Diamond Sponsors comprising: Galaxy Entertainment Group, Melco Crown Entertainment, MGM, Sands China, SJM and Wynn Macau as well as the international media for their fantastic coverage and support. MGS is the only show that is truly representative of the Asian gaming industry and I look forward to continuing the success story at the Venetian on 17–19 November 2015.”

CR146-p26-37-MGS previewG_Coinslot NEW 11/12/2014 10:54 Page 2

MACAO GAMING SHOW / MACAO GAMING SUMMIT Macao Gaming Show November 17-19 2015

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The Macao

Gaming Summit kicked off with a keynote presentation from Bloomberg Intelligence research analyst, Margaret Huang, who explained the data behind shifts in the Macau marketplace.

Jay Chun

e with ce CELEBRATING GAMING EXCELLENCE he second edition of MGS provided an opportunity for the industry’s leading innovators to be recognised. The MGS Slot Experience Centre (SEC) allowed exhibitors to put their slot machines into competition and receive valuable feedback from invited casino VIP players, casino slot directors and managers, slot professionals, and general players who ‘test drove’ these products before casting their votes.

After two days of intense competition, the four slots prize winners were: Best Theme: Rising Dragon by Konami Gaming; Best Graphics: Sky Rider Golden Amulet by Aristocrat Technologies; Best Sound: Samurai Dragon by Aruze Gaming; and Best Playing Experience: Novoline Interactive Mix All-In-One by Laxino Systems. MGS organisers provided statistics and player feedback comments to each participating company in order to provide insight from both playing and operator perspective, as well as providing input for future game development.

T

MACAO GAMING SUMMIT 2014

Data driven keynote drives Macau understanding unning in parallel with MGS, the Macao Gaming Summit provided expo attendees and figures from the international gaming industry a chance to reflect on the region’s trends and to look forward to the future of gaming in Macau and beyond.

The event’s keynote speaker, Margaret Huang, ticked both boxes, using statistics from her work at Bloomberg Intelligence to reveal the stories behind Macau’s recent financial trends and provide a glimpse into the future.

Huang highlighted that Macau remained the centre of the gaming world. “On a monthly basis,” she said, “Macau is about seven times the size of Vegas.” In terms of visitor numbers, however, it’s a completely different story. Vegas attracts around 40 percent more tourists than Macau, which, says Huang, “speaks volumes about the market that’s here - people come to gamble.”

Traditionally, Macau’s success has been driven by the VIP market

R

and a it’s drop in VIP revenue which has led to the region’s matching dip in the past two quarters. However, Huang revealed that an operator’s profit margins on VIP players are far lower than mass market. Differing from 12-13 percent to around 40 percent. “This is why a lot of casino operators are focussing towards this more profitable segment,” she explained.

She predicted that year-on-year comparisons may continue to appear unfavourable into May next year, thanks in part to unprecedented growth in 2013. The slowdown during 2014, contrasted with massive growth during the previous 12 months, has made the cooling appear more dramatic at first glance.

A change in attitudes towards Macau from Hong Kong and mainland visitors has also had an impact.

Border easing and good travel infrastructure has meant that more people can travel in and out of Macau on the same day. However, these visitors spend less than those that stay

overnight, which means that a simple analysis of mass market visitation may not reveal the whole story.

The cause of this trend may well be a lack of capacity. Macau’s many hotel rooms are fully booked almost year round and as more rooms are created during the coming year, Huang suggested that this problem may resolve itself.

The low rate of 1.17 percent unemployment has also taken its toll.

“You’ve already started to see operators paying higher wages and offering benefits to try and retain people and attract more,” said Huang. “Operators will also need 50,000 more people for all the new casinos resorts in the pipeline during the next few years.”

However, noted Huang, this focus on why growth in Macau is slowing belies the fact that it is still an extremely strong market.

“There’s certainly a lot of opportunity ahead of us,” she confirmed, “and 2015 is going to be a year of sheer volume growth.”

December 2014 casinoreview

| 27

Venetian Macao

17-19 November 2015

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CR146-p26-37-MGS previewG_Coinslot NEW 11/12/2014 10:54 Page 3

Review

MGS 2014

LT GAME

TCS JOHN HUXLEY

Maximising profits through Gaming Floor Live

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LT Game cements IGT partnership at Macao Gaming Show LT Game’s commitment to innovation was underlined at MGS 2014, as was its increasing sphere of influence across the globe.

A unique celebration of gaming in Asia and one which enabled us to demonstrate the depth and breadth of our total casino solutions offering,” is how Betty Zhao, chief operating officer at LT Game chose to describe the company’s successful appearance at November’s Macao Gaming Show (MGS).

Following the partnership with IGT, which was announced in September, LT Game used the opportunity presented by its ‘home show’ to demonstrate the new power house in casino gaming to an audience of buyers and industry professionals from countries including Japan, Cambodia, US, Canada, Philippines, Vietnam, Singapore, Sri Lanka, UK, Austria, Slovenia and the Netherlands, as well as Macau.

Zhao said: “We had the largest stand at MGS which we needed in order to show the totality of our product portfolio. There’s a great symmetry between the personalities and team cultures at LT Game and IGT, and it was fitting to cement our relationship at such an important and high profile event as MGS.” LT Game’s commitment to innovation and its strong R&D culture was much in evidence with products developed to suit the needs of the market. Zhao explained: “One of the many product highlights were the versions of our E-Baccarat, which we showed in both traditional and bar top formats. In addition to

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30 | casinoreview December 2014

delivering a secure, fast and convenient gaming experience for players, E-Baccarat has significant operational benefits not least the fact that it is ‘attendant free’, which not only reduces overheads but is particularly important in those jurisdictions which suffer from a shortage of labour.

“The bar top version delivers the same high end player experience but in a casual and compact manner which is an important consideration for operators of smaller casinos where space is at a premium.”

Another product which attracted significant interest from stand visitors at MGS was the luxury Airline Concept Betting Terminal. Comprising the most advanced live multi game system on the market and an HD touchscreen for betting, the product also features a fully functional massage sofa and service functions including a service call phone, reading and background lights, a dining table, power supply and USB port.

“This represents the ultimate in private, luxury gaming entertainment,” stated Zhao. “Inspired by the first class airline experience, this terminal delivers gaming as its never been experienced before.”

She concluded: “MGS is extremely important to LT Game and we believe the growing influence of MGS will play a part in helping us to expand further our growing influence on the international stage.”

n 2014, TCS John Huxley has been concentrating on rolling out its Gaming Floor Live platform as well as a number of product releases, including the Blaze suite.

“The most significant project we recently supplied was the Solaire Casino expansion in the Philippines,” said Tracy Cohen, director of marketing for the UKbased group. “This included over 60 tables and sees the venue more than double in size with an increased VIP gaming area.

“One of our strongest products this year is Gaming Floor Live for Baccarat, with over 900 tables installed to date,” Cohen added. “This real-time game optimisation tool is designed to maximise key performance areas and profitability. Casinos now have powerful information at their fingertips that can assess Dealer Accountability by giving real-time feedback on dealer performance as well as speed of each of the hands being dealt; Pit Visibility with Table Alerting and Reporting; Increased Security providing surveillance views of all tables, alerts and incidents as well as complete Floor Optimisation with back of house reporting for table optimisation. All this is available on an open platform that can interface with existing systems, if required.

“By having visibility of enough data and knowledge to refine and optimise processes even a tiny amount, operators are able to save and make more money. Even a fractional optimisation on the scale of Macau table revenues, adds up to a significant and positive change to profitability. As a result, there has been a great deal of interest in the platform and we expect to roll this out in a number of properties throughout Asia in 2015.”

There are a number of openings planned across Asia in 2015 and 2016, and to meet the growing market demands TCS John Huxley has focused this year on strengthening its team by hiring the right people to drive our business forward as well as a continued commitment to develop key products for the region.

“We continue to grow our market share in Macau, Singapore and Malaysia and with new markets in the Philippines opening up, it is important we are positioned to provide the right service and support to meet the market requirements and our evolving product mix,” Cohen said.

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BALLY TECHNOLOGIES / JCM GLOBAL / LT GAME / NOVOMATIC / TCS JOHN HUXLEY Macao Gaming Show November 17-19 2015

BALLY TECH SLOTS JCM GLOBAL IVIZION LT GAME E-BACCARAT NOVOMATIC NOVOSTAR VIP TCS JOHN HUXLEY GAMING FLOOR LIVE

JCM GLOBAL

JCM: making gaming floors more efficient After acquiring FutureLogic earlier this year, JCM Global exhibited at this year’s MGS with an expanded range of peripherals and printers.

CM Global continues to focus on both new and established markets in Asia, with the company’s recent acquisition further helping operators maximise their floor efficiency.

Kunal Mishra, general manager of Asia sales for JCM Global, said: “Our major products at Macao Gaming Show (MGS) are, of course, the iVizion bill validator and FutureLogic’s Gen3 printers.”

The validation and denomination process of iVizion is powered by Contact Image Sensor (CIS) technology that scans 75 times more data points than any competitive product and captures the full image of a banknote or a ticket. It optically centres ban-

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knotes and eliminates the need for mechanical centreing, improving banknote-to-banknote-processing speed.

Inside iVizion is some of the best security combination in gaming: a combined optical and patented mechanical anti-stringing device that detects and prevents manipulation or mechanical cheating. It runs faster with a powerful processor solely dedicated to banknote evaluation, resulting in a 99+ per cent acceptance rate and the fastest banknote-to-banknote processing speed. It is self-calibrating, accepts banknotes up to 85mm wide and has a sealed banknote path with dirt and liquid resistant design, resulting in less service-related down time.

BALLY TECHNOLOGIES

The JCM Global and FutureLogic team at MGS 2014

“JCM is a leading supplier of peripheral technology for the global gaming market,” Mishra said. “Earlier this year, we merged with the leading supplier of printers in this market, FutureLogic, and this has created a powerful combination of complementing products. “iVision by itself was arguably the number one validator in its space. In this year in Asia we expect the majority of casinos will have a combination of JCM products on their casino floor. One of our challenges is really to be able to show the complementary nature of the products and the service and how we’re trying to get two companies and trying to build a complete solutions package

for our customers.”

Mishra added: “Our DNA solution really represents the merger of the applications of peripheral technologies. By themselves, peripheral components are singular components that talk to a machine, but to be able to bring the value out in these components, we really need to be able to have solutions and technologies and software that allow us to do that.

“We are creating a software package that allows us to download the firmware for a bill validator; to be able to check on the health of the bill validator or printer; to really be able to bring out the value to the operators of making their floors more efficient.”

NOVOMATIC

Novomatic takes luxury gaming to MGS Ken Jolly

Bally grows Asia footprint through SHFL acquisition ally Technology’s $1.3bn (E1.1bn) acquisition of SHFL Entertainment in November 2013 saw the creation of one of the world’s most diversified gaming groups, Speaking at the 2014 edition of the Macao Gaming Show (MGS), Ken Jolly, vice president of Asian operations for SHFL, said: “The SHFL business in Asia prior to the Bally acquisition was growing, and one of the great things about SHFL as a company was that it was very diversified in its product range.

“Not only did we have a range of slot machines, we also had a range of electronic table games. On top of that, we had proprietary tables and, of course, the utilities that SHFL built its business on: shufflers.”

Jolly said the merging of Bally and SHFL

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created a much more diversified company.

“As we move forward, with Scientific Games’ announcement, this adds further delivery systems to our portfolio, and keeps us the most diversified company in the gaming industry and certainly one of the largest players in the marketplace,” he said.

Discussing the growth potential of gaming markets around Asia, Jolly stated: “When you look at Macau, the SAR welcomed 30 million visitors last year, 80 per cent of whom were from Mainland China. Although this figure is high, there are 1.3bn people in Mainland China, so only a small percentage of people are coming to play at this time, so the growth potential is huge, particularly when you consider what’s being planned over the next few years in terms of casino openings.”

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range of Novomatic gaming products were on display at this year’s Macao Gaming Show (MGS).

Exhibiting alongside Jade Entertainment and Gaming Technologies, Novomatic’s Novostar VIP and Panther Roulette II took centre stage, as David Orrick (pictured), director of communications and business development, said the group continues to support its partners in the region.

An ideal fit for high-end gaming in Asia, the Novostar VIP includes a giant 46-inch TFT screen positioned at the perfect ergonomic distance for best game play using the Flip-Screen Feature to bring the games into an amazing panorama format. The featured Crown VIP chair with integrated sound system and start button in the armrest completes the thrilling gaming experience of this unique cabinet innovation.

Panther Roulette II, meanwhile, uniquely blends the essence of roulette with classic arcade pinball, delivering a new and immersive gam-

ing experience.

Philippines-based Jade Entertainment has been rapidly building a solid reputation as a trusted provider of electronic gaming machines and other gaming technologies.

December 2014 casinoreview

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Review

APEX GAMING / IGT / MATSUI

MGS 2014

Macao Gaming Show November 17-19 2015

APEX GAMING APEX PLAYER STATION IGT TOKIDOKI MATSUI RFID CASINO CHIP

IGT

MATSUI

A freshly inked deal with LT Game, along with a host of Asia-specific titles, resulted in widespread interest at IGT’s booth at this year’s Macao Gaming Show.

Matsui unifies chip technology Sabby Gill

Compelling local content from IGT GT is renowned for producing slot titles that appeal to players’ different needs.

The Las Vegas-based company offers everything from entertainment-focused titles that utilise the world’s hottest brands, to those which offer compelling volatility levels for big bonuses.

Speaking at this year’s Macao Gaming Show (MGS), Sabby Gill, senior vice president of international sales for IGT, reiterated the company’s commitment to the Asian gaming market.

Gill talked through the development of IGT’s culturally-specific titles, and said the company’s success in the region has come through its local development studios in

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Beijing and Sydney.

“Tokidoki has been one of the highlights of the year in Asia,” Gill said. “The other has been our modular progressives, such as San Xing Bao Xi. This format is working well - it particularly appeals to high rollers.

Our Australia studio has also created a raft of new games that appeal to key demographics, such as Dragon Fairy, Jade Fortune and Dragon Dance.”

“In terms of innovation, we have been focusing on compelling bonus features,” Gill said. “And when it comes to presentation, we have been looking closely at character sets - not only in relation to language, but also images. Having this approach has

T been instrumental to our success.

“We saw several major operators throughout MGS this year,” Gill added. “We will also be moving to a new location in the AIA Tower in Macau. The upgraded showroom and offices reconfirms our dedication to the market.”

Discussing IGT’s recently-signed partnership agreement with LT Game, a leading player in the Macanese casino equipment market, Gill said: “The relationship with LT Game really allows us to benefit from their local presence, while IGT will look to tap new markets for the company’s own products in markets, particularly outside of Asia.

APEX GAMING

Apex Gaming steers for growth in South East Asia Together with local partner Laxino Systems, the Apex team enjoyed an extremely positive and busy Macao Gaming Show this year. he growth path of Apex Gaming in Asia was clear to see from the reaction of the visitors to this year’s Macao Gaming Show (MGS).

Together with local partner Laxino Systems Limited, the Apex team enjoyed an extremely positive and busy show.

The Apex Player Station (APS) was warmly greeted by visitors to the stand. This electronic multiplayer offers roulette and also three other table games: bacarrat, sic-bo and the Apex game, Quikker, which is a unique card-based game.

“We have done our homework and will continue to do it,” said Max Pessnegger, CEO of Apex Gaming. “We have studied player requirements. We have not just taken our European offer and exhibited these products. That explains why the APS is already certified for the Macau market. Together with Laxino, we will be investing in ensuring that our product range is ideal to meet local needs and requirements.”

The strategy of introducing Apex Gaming to the South East Asian market is following clear steps. The first step has been successfully completed - the certification of the APS with four table games. The next step will to be to include slots games especially targeted to player needs here. The third step is then to offer the updated slots solutions - namely the Pinnacle 24-inch upright and Pinnacle SL 27inch slant top gaming machines.

he flagship technology of the modern casino chip is RFID. This built-in hardware allows for unprecedented security and was, of course, a major component of the products Japanese experts, Matsui, brought to the Macau Gaming Show.

The company’s RFID selection boasted a significant advantage. “The very unique point is that our’s combines gate checking for employees,” said Shigeki Machida, managing director of Matsui Asia. “Normally the RFID microchip cannot work together with a magnetic sticker, but our technology has some special treatment.”

Although the company has made real progress in Europe during recent years, Asia remains its core market.

“We have been doing very good in the European area, but its only 30 percent of our business,” said Machida. “Fifteen percent is in US and the rest is Asia. Including Korea and Macau.”

This has an impact on the kinds of casino equipment that Matsui produces. “In Europe they use more jetons and plaques, the French style,” said Machida, and the company’s display in Macau included a new range of plaques which matched the style of its trademark chips. “In Asia they still use the plaques, but not many the jetons,” confirmed Machida. “The player here prefers the metal chips and that’s our core product.”

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“We have set our strategy and are looking for long-term success in South East Asia,” Pessnegger added. “There are opportunities for companies who offer the best gaming entertainment solutions. Having such a strong partner in Laxino ensures that we attain continual market feedback to safeguard we are creating the right solutions.

“We do not expect immediate success. We know and understand that it will take time to establish ourselves. We believe we have the right solutions and look forward to supporting our customers there.”

Chairman and CEO of the Matsui Group Takashi Matsui (left) and Shigeki Machida, managing director, Matsui Asia

Live Multi Game

Providing the Most Invigorating and In Innovative Gaming Products

www.ltgame.com sales@hk1180.com

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Review

ARISTOCRAT / GAMING STANDARDS ASSOCIATION / RGB INTERNATIONAL / WMS GAMING

MGS 2014

Macao Gaming Show November 17-19 2015

ARISTOCRAT HELIX CABINET GAMING STANDARDS ASSOCIATION WMS GAMING WINNING FORTUNE PROGRESSIVES ARISTOCRAT

Helix has Macau in a spin A new eye-catching upgrade to the Helix cabinet marks the next step in Aristocrat’s Asian expansion. acau’s status as the brightest star in gaming’s constellation often demands the biggest and the best from the companies who support it. That includes Aristocrat, whose stand at the Macao Gaming Show was dominated by a high resolution upgrade to some of its best loved games.

The display centred around the new Helix cabinet, which was on show in both upright and slant form. The latter boasted a new Super Screen - a high definition widescreen monitor designed to get the best out of the company’s graphically driven titles.

“You want full HD in your house, you want full HD in your casinos,” said marketing manager, Nathan Drane (pictured, right). He also revealed that the simple addi-

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tion of an high quality screen to the company’s Helix machine has already elicited positive results. “What we’ve seen in other markets is the same game in widescreen actually outperform another Helix,” said Drane. “It just gives it an extra punch when it’s in full HD. The graphics were already built to that standard.”

The Helix is not only about workmanship on the digital side. Regional marketing manager, Miguel Choi (pictured, left), explained how the hardware had been created with the human body in mind. “We did a lot of design on this,” he said, “including an ergonomic study to fit the machine to 95 percent of players.”

The team also revealed that they are working on hitting all three of Macau’s major market slices. “The first is mass mar-

ket, the second is premium and the third is VIP,” explained Drane. “So there’s our core Aristocrat volatile games, such as Five Dragons, which really are our staples and now we’re trying to diversify into more mass market, as we’re seeing more players come from this area.

This mass market strategy may include a few big licensed titles, which have proved popular for Aristocrat in the US. “They are definitely mass market products,” Drane said of licences such as The Walking Dead.

“They are products that are going to get people on the floor that may not have traditionally done so.”

With Macau’s big players looking to push mass market visitation, the layout of their gambling floors becomes more important than ever. For Aristocrat, offering licensed titles is one of many ways they can support casino designers. “What do you put near the entrance to get people onto the floors?” asks Drane. “You say people do it with big jackpots, for example and you can do it through hardware differentiation, which may be Wonder Wheels from Aristocrat, or you can do it through cabinet differentiation. There’s a whole manner of ways we’re going to look at for this market in the future.”

GAMING STANDARDS ASSOCIATION

RGB INTERNATIONAL / WMS GAMING

DeRaedt: Global gaming must respond to rate of change

RGB showcases WMS titles

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aming Standards Association president Peter DeRaedt was one of the final speakers at the Macao Gaming Summit, delivering an invigorating presentation to onlookers on the unstoppable march of technological progress.

One his key desires was to emphasise the blurring of lines between land-based and internet gaming technology. As server based slot packages and on-site tablets become an increasingly prevalent feature of the global gaming market, this creates challenges for regulators and operators.

“Gaming is shifting from game centre to system centric to player centric,” said DeRaedt. The GSA chief emphasised that there would be more than 1.75bn smartphones in use around the world before the end of 2014, with some analysts predicting that annual growth may top 39 percent.

All of this unstoppable change places pressure of governments to craft regulations to deal with what DeRaedt called a “borderless and faceless new industry.” A lack of applicable standards has led to the creation of custom interfaces for every

34 | casinoreview December 2014

R system licensed, creation confusion and a lack of consistency.

This is where the GSA can step in, explained DeRaedt. “We can encourage collaboration between industry stakeholders and support the creation of any standard that helps the industry,” he said. The group has a strong track record of creating standards used widely across both the online and land-based industries.

Certain regulatory agencies have adopted the GSA’s standards full bore. The Canadian Provinces stipulate the use of GSA standards, while Greece does the same for its 35,000 video lottery terminals. Overall GSA standards are in play in 76 countries.

This coverage feeds into DeRaedt’s goal to encourage the adoption of open communication standards between regulators and companies.

This bridge building project, he contends, is key to keeping our heads above the water as the progress of technology continues to swamp the global gaming industry.

GB International, the Malaysia-based gaming manufacturer, distributor and technical support services provider, took a range of products to this year’s Macao Gaming Show (MGS).

According to chief operating officer, Steven Lim, the listed company has been a distributor of WMS Gaming products for more than 10 years. This year, the company showcased a range of Asia-specific titles from the manufacturer, including the Winning Fortune Progressives, known as Yi Lu Fa. Yi Lu Fa was created with the Asian market specifically at the heart of its development. This product offers five levels of progressives, an interactive feature that allows players to place the top progressive symbol on the wheel before spinning, and three base themes, Wishing You Fortune, Far East Fortunes Deluxe and Dragon’s Legend, each with unique bonus rounds.

With roots going back to 1986, RGB is acknowledged as a premier supplier of gaming machines and equipment in Asia.

RGB chief operating officer, Steven Lim (right), with Patrick Ng, senior sales manager for WMS Gaming

Bring Your Table Games to Life TCSJOHNHUXLEY introduces Blaze the latest LED gaming surface technology that delivers brilliance and excitement to table games.

Make your tables stand out on the gaming floor with stunning game animations projected through a traditional gaming layout or acrylic playing surface. Players and gaming staff will instantly benefit from seeing all winning numbers and sections of the Blaze game layout clearly highlighted.

For further impact, animated game attract sequences automatically run until no more bets is signaled by the system. With the improved visibility of winning sections, pit bosses and security staff can also easily monitor game procedures. The flexibility of the system allows casinos to interchange games from a growing games library.

Now available for Roulette, Money Wheel and Sicbo. For further details contact your local sales office.

Blaze Features: Available for Roulette, Sicbo, Money Wheel Assists dealers’ accuracy Highlights winning bets for added security Under layout game animations Indicators for place your bets, finish betting and no more bets 7” LCD dealer touch-screen console Integrates with all TCSJOHNHUXLEY displays and multi-player products Quick and easy to install Multi table options available Low maintenance longlife LED’s

To contact us, or for further information visit: www.tcsjohnhuxley.com

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Review

MGS 2014

GTECH

Asian gaming market demonstrating ‘incredible growth’

Maria Garcia, director of sales in Asia for GTech

The universal appeal of key licensed games is helping GTech bolster its presence across high-growth Asian markets.

Tech has enjoyed a successful year in Asia, with the launch of Plants vs. Zombies and Zuma slot games, which are both showing very promising results.

The group, which exhibited at this year’s Macao Gaming Show (MGS), is currently in the final stages of regulatory approvals for Plants vs. Zombies 3D, Zuma 3D and Sphinx 3D in Macau.

“We expect these games to be huge successes, just as Sphinx 3D is in both Europe and the US,” said Marcel Heutmekers, vice president of commercial gaming, international, for GTech. “It’s been installed, or is scheduled to be installed, across many major operations, and in many locations is performing three to four times the house average.

He added: “For casino systems, we also had a very successful 2014, and extended our footprint across the region with multiple new installations, including some of our latest product portfolio extensions, such as our junket module.

We also expanded our local team from our Kuala Lumpur

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base in Malaysia.

“Asia is a very important market for GTech. It’s shown some incredible growth in recent years, and is expected to continue. It’s a key part of GTech’s expansion strategy for the coming years, and we are committed to delivering high-quality products and services that are customised for and adapted to regional preferences and regulations.

“The launch of our Sphinx 3D game and expanded library of 3D products for Macau is the next major next step in this strategy.”

Discussing the success of MGS 2014, Heutmekers said: “MGS was a very well-organised show, and the organisers did a great job. The event was very successful for GTech, as we were able to build anticipation by demonstrating some of our products that will soon be available in the market. Attendance was very good, and we were pleased to participate. The show itself is still young, and has potential to grow in the next few years.”

The three-time award-winning Sphinx 3D is the first title

BMM TESTLABS

in the new Spielo True 3D product line, which uses a glassesfree 3D display designed exclusively for GTech for the gaming industry by SeeFront. It uses a unique, patented autostereoscopic technology with integrated eye-tracking to make images jump off the screen or stretch into infinity in high resolution.

Sphinx 3D is presented on the Axxis cabinet, which is designed to maximise player comfort, create a sense of personal space, and immerse the player in the game.

The GTech stand at this year’s MGS also featured two popular titles that casual gamers know and love from PopCap Plants vs. Zombies Backyard Showdown and Zuma. Gtech has worked closely with PopCap to stay true to the spirit of their internationally acclaimed brands, creating terrifically fun and engaging new slot gaming experiences.

The PopCap library of games is available on the MaXVusion cabinet, with a 32-inch portrait high-definition LCD top screen.

AINSWORTH

Ainsworth making a mark in Macau

Kirk White

‘The opportunities are growing in Asia’ MM Testlabs, the global independent gaming certification group, continues to grow its activities in Asia, as new markets open up and existing territories refine their existing regulations.

“BMM’s Asia business has grown yearon-year since we first entered the region,” said Kirk White, executive vice president and general manager for BMM in the AsiaPacific region, at the recent Macao Gaming Show (MGS). “As the number of regulated gaming jurisdictions around Asia grows BMMs Macau and Singapore labs are gearing up for an increased demand.”

In May, BMM announced that it had successfully extended its ISO:17025 Quality Testing Accreditation Standards for its BMM Singapore branch to include online gaming, and had achieved the ISO:17025 Accreditation for its Macau testlab facility.

This was followed by news in October that the group had received approval of its

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Singapore licence by the country’s Casino Regulatory Authority (CRA).

Although BMM has been licensed with the Singapore CRA for some time under Singapore Recognised Testing Laboratory (STRL), the CRA recently updated the requirements for testlab licences to Approved Testing Service Provider (ATSP), requiring BMM to be newly certified.

As BMM grows its Asia operations, the company is currently looking to testers in Singapore and Macau, along with a new business development manager to support the group’s activities in the region.

“There has been a great deal of change in the manufacturing world during 2014, and we are yet to understand the outcomes of the recent consolidations in regards to the market product offerings. I am sure any changes will bring opportunity as well as challenges so it will be interesting to see what happens during 2015.”

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ustralia’s Ainsworth Game Technology has long maintained a presence in Macau and with no signs that the Chinese peninsula will be knocked off the top of the world gambling charts, the company is now looking to increase its footprint.

Bringing a captivating display to the Macao Gaming Show was a key part of this strategy and the team on hand were reaping the rewards of this effort.

“The show has been very good,” said group general manager, Scott Clarebrough, “all our customers from Macau and other Asian markets have been visiting, so it’s been a positive show for us.”

Ainsworth’s customers were particularly keen to take a tour around the stand, thanks to changes in gaming machine rules for the region. “With changes to the regulations here, we’re showing for the first time all the games that are designed for the new regulations,” said Clarebrough.

In many ways, Ainsworth’s games are clearly suited to Macau. Traditionally, Asian players have preferred more volatile games, as opposed to machines that encourage longer

games with smaller payouts. “Our games are traditionally very volatile,” noted Clarebrough. “These games have been developed for other markets too, so the math isn’t specific to Macau so much. It’s used in Australia a lot, in the US and Europe. We tend to globalise a lot of our math models and the translation that’s part of the Mandarin/English translation that is mandatory here.”

Of the games on show, there were a few standout performers. “Treasure Storm has been popular,” said Clarebrough, “as has Fortune Ox.”

Scott Clarebrough (left) with sales manager Keith Jeffrey

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AINSWORTH / BMM TESTLABS / CRANE PAYMENT INNOVATIONS / GAMING LABORATORIES INTERNATIONAL / GTECH / KONAMI GAMING Macao Gaming Show November 17-19 2015

AINSWORTH TREASURE STORM BMM CERTIFICATION CPI SC PRODUCT LINE GLI TESTING AND CERTIFICATION GTECH SPHINX 3D KONAMI ULTRA REELS SERIES

KONAMI GAMING

CRANE PAYMENT INNOVATIONS

Konami brings the latest video slots for Asian markets to MGS

John Gomes, general manager at Konami Gaming’s Singapore branch

Global gaming manufacturer Konami Gaming presented an array of new KP3 game titles created for Asian gambling markets at this year’s Macao Gaming Show. onami Gaming presented a promising selection of new games at the 2014 edition of the Macao Gaming Show (MGS) last month. The company displayed an array of fresh products that demonstrate the company’s ‘Born From Fun’ heritage, as well as its ever-increasing specialisation and performance in Asian gaming markets.

At this year’s MGS, Konami introduced a strong selection of games with unique visual experiences designed to entertain and delight Asian patrons, including its UltraReels series with a 3-4-4-4-3 configuration and a number of five-reel titles with innovative bonus play experiences and celebration sequences.

New themes such as King of the World, Great Luck Great Profit, and Red Fortune feature Asian-inspired design elements and math models, housed in the classic Podium cabinet.

King of the World features a unique free game bonus feature that allows players to influence their destiny by choosing from a

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one of three different feature combinations of free games and multipliers. Based on the trigger symbols, players can win up to 30 free games or 100x multipliers.

In More Gold More Silver’s free game bonus, players are put in control when they choose between three different statues. If the statue reveals a gold ingot, all the silver ingots become gold throughout the free games. This symbol transformation gives players the opportunity for big wins. And if the ingot reveals silver, players still have the opportunity to win big as all gold ingots become silver for the free games.

Great Luck Great Profit, meanwhile, sees any 3, 4 or 5 wild symbols on adjacent reels trigger 5, 10, or 15 free games, respectively. During the free game feature, red gates unlock to reveal blocks of the same symbols on outer reels, and 2x and 4x multipliers randomly appear in the middle reels. Additional free games can also be won during the free games.

One of Konami’s most popular new bonus features is Balance of Fortune. Any-

time 20 or more free games are awarded, it gives players the option to either begin using their free games or exchange them for a credit prize. This empowers them to choose their own destiny, and it’s a key component of the new Lion Festival: Boost celebration five-reel video slot. Throughout the base game play, lanterns illuminate the night, while drums and fireworks provide the festival’s backbeat, for a truly celebratory encounter.

Konami also took its attention-grabbing Rapid Revolver premium cabinet to MGS 2014. Rapid Revolver takes a unique spin on classic mechanical reels by mounting six stacked and vertically-mounted drums on its oversized top box, surrounded by synchronised high-impact sound and lighting.

Designed to stand out on a casino floor and grab the attention of casino guests, Rapid Revolver presents two distinct gaming concepts fused into one by combining traditional video reel on the lower screen with spinning reels up top.

GAMING LABORATORIES INTERNATIONAL

GLI enjoys strong MGS presence elebrating its 25th anniversary this year, Gaming Laboratories International (GLI) enjoyed a successful 2014 edition of the Macao Gaming Show (MGS), with the testlab receiving interest for its services across a wide range of gaming sectors.

“The Macao Gaming Show was a terrific event for GLI, and we are grateful to our clients and to the organisers for making it such a great show,” said GLI Australia’s chief operating officer, Espee de Robillard.

“MGS is important for GLI because we have four laboratories serving the Macau and Australia markets.”

GLI’s Asia laboratory is based in Macau, staffed primarily with Macau residents and

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testing, including consulting, auditing, IT security testing and auditing and rule-writing. These types of services are very important offerings for our existing clients and potentially new clients.

“Of particular interest to our lottery clients is our expanded portfolio of services GLI Asia representatives, as they relate to lotteries, including WLA Amanda Chan and Leung Kar Wai auditing, network risk assessments, project management and responsible gaming,” de natives. “This lab has been very successful Robillard added. “And as iGaming continin land-based, iGaming and lottery testing ues to grow globally, interest in our many and certification in the region, and at the iGaming services was very strong at MGS, show, we had a great deal of interest in our and we presented a range of our services world-leading testing services, and we were including standards, project health check also very pleased to have had such tremen- and recovery, security reviews and other dous interest in our many services beyond such professional services.”

CPI takes expanded portfolio to MGS

C

rane Payment Innovations (CPI) took its expanded range of cash handling and casino management solutions to this year’s Macao Gaming Show (MGS).

The company continues to improve its SC product line. New extensions and enhancements are being developed for the SC Advance bill validator, which evolved from the Cashflow SC and applies the latest technology and customer feedback to make this unit a dominant player in the field.

Speaking at MGS, Graeme Lewis, vice president of Asia-Pacific operations for CPI, said: “We are really focusing on Easitrax Soft Count right now.

The addition of Easitrax to SC note acceptors links the slot floor to the back room and creates one of our most comprehensive cash management solutions for the Gaming industry.

“We’ve already released the web version of the product, and now we’re looking to develop additional enhancements that will funnel even more value into our customers’ operations.”

CPI was formed through the December 2013 merger of cash handling specialists MEI and Crane Payment Solutions. Lewis said the integration of the two companies in relation to its Asian operations had been “seamless”.

“It’s business as usual for our customers in Asia,” Lewis stated. “Only now they have access to the largest portfolio of payment solutions in the industry. By combining MEI’s strength in notes and Crane’s strength in coins, CPI has become a full-service cash handling group. We offer complete solutions.”

Edmond Tang (left), Asia-Pacific sales manager for CPI, and vice president of Asia-Pacific operations, Graeme Lewis

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Supplier

E-GAMING / NOVOMATIC GROUP OF COMPANIES / TCS JOHN HUXLEY

News

E As gaming jurisdictions around the world are realising the benefits of serverbased gaming, e-gaming is looking ahead to a busy 2015.

Macao Gaming Show November 17-19 2015

SERVER BASED GAMING

MANAGEMENT

E-Gaming targets new markets

Jens Halle to leave Novomatic

-gaming has been active in the field of server-based gaming (SBG) since 2005, and today has its reach in more than 10 countries worldwide.

The Czech Republic-based company operates - either directly or through its local partners - more than 20,000 terminals, and these numbers are increasing constantly due to the fact that e-gaming is looking for new territories and jurisdictions.

“Many countries are currently looking to have increased control and better monitoring of their landbased gaming operations,” said the company’s Pavel Michalcio. “In such territories we are actively looking for long-term and secure partnerships.”

In Europe, e-gaming recently passed the certification process in Macedonia and Spain, with initial results proving successful. The company is also ready to enter new markets in the region, once the gaming legislation in those territories has been updated and approved.

“In addition to these new markets, we always rank among our priorities the domestic markets of the Czech Republic and Slovakia, where we achieve excellent results despite of the strong competition and a difficult period in terms of pending legislative changes,” Michalcio said.

“We started to expand into South America a couple of years ago, and now we have a

good quantity of machines installed in some famous casinos in Mexico. Mexican players really like our games, and as such will send more units in the near future as other companies are now interested in working with us.”

Elsewhere in South America, e-gaming has machines

installed in Panama, and the company is currently in discussions with two as-yetunnamed countries in this key region.

“As a young, innovative and very flexible company in the field of SBG, we are constantly looking for new challenges,” said Michalcio. “We closed some deals with some European companies for delivery of game content for online platforms, and are looking to expand in this field, too.

“During the ICE show in London in February, we will present our latest games and innovations, new online casino platform and also our new cabinet. We are looking forward to welcoming visitors from around the world to our stand.”

T

he Novomatic Group has confirmed that gaming industry veteran Jens Halle will step down from his joint positions as managing director of Austrian Gaming Industries (AGI) and CEO of Novomatic Americas Sales.

This move, which was reached by mutual agreement, will see Halle relinquish his roles within Novomatic by the end of this year.

Commenting on the decision, Halle said: “Fifteen years ago I was honoured by the invitation of president and majority shareholder Johann Graf to join the iconic Novomatic Group as head of sales. Later, I was appointed managing director of AGI and, assisted by a loyal team of true gaming professionals, was able to see Novomatic achieve notable success, not just in Europe but around the world.

“However, although I now feel the need for new challenges and new directions, I will always be grateful for the experience of working together with colleagues and friends and for the satisfaction that I gained from being within one of the gaming industry’s true leaders.”

Commenting on the decision reached jointly by Novomatic and Jens Halle, Herbert Lugmayr, chairman of the Novomatic supervisory board, said: “I extend my appreciation to Jens Halle on behalf of the owner, the management board and the supervisory board, for his long-standing commitment.

Mr Halle has made a significant contribution to the international orientation of this company. I wish him all the best for his future.”

MANAGEMENT

Cath Burns leaves TCS John Huxley

here will be a new face at the helm of TCS John Huxley in the New Year after confirmation that global chief operating officer Catherine Burns has left the company. Executive chairman Tristan Sjöberg has assumed the responsibilities until a successor to the

T

38 | casinoreview December 2014

key post is found.

Burns leaves after a successful two and a half year term at the helm of the London based supplier.

Sjöberg said in a statement: “The board and I wish to thank Cath for the excellent contribution she has made to the business.

Under her leadership TCS

John Huxley has developed innovative products and services with committed product roadmaps, which protect our customers’ investment in us and in turn provide strategic growth for the future.”

The firm added that since her appointment in March 2012, Burns had

overhauled the business by ‘realigning, refocusing and preparing the company for the next stage of its growth’, placing a strong emphasis on electronic devices for table gaming and on gaming management systems to supplement its core product lines.

CR146-p38-45-SupplierG_Coinslot NEW 11/12/2014 11:09 Page 2

Supplier

News

REGIONAL OFFICES

EXHIBITION

GLI relocates Colorado Suzo takes Laboratory cash handling solutions to I Lille GLI relocates its Colorado facility to accommodate demand and prepare for future expansion.

ncreased demand for its gaming testing and technical consultancy services was the key influencer as Gaming Laboratories International (GLI) relocates its Colorado laboratory to a new 40,000 square foot facility in Wheat Ridge, Colorado.

Dave Daniels, senior director of engineering for GLI and general manager of the Colorado laboratory, said the new facility would allow the company to better serve customers while also allowing for future expansion.

“GLI has been very fortunate to have an ever-increasing demand for our services, both in our testing and certification services and in our many services beyond testing, such as forensics, network security assessments, field inspections and GLI University

training,” he added.

Daniels was quick to point out, though, that despite moving to a new city, the GLI laboratory and its 100+ jobs remain in Jefferson County - a somewhat spiritual home for the company.

“GLI has a long history in Jefferson County. We first opened a Colorado facility in the county in 1995, and we have enjoyed a successful relationship with the County, the State and regulators and operators ever since. We are very pleased to announce our decision to stay in the county, and we look forward to many more years of successful cooperation.”

The new laboratory became fully across Africa, Asia, Australia, the functional on December 1 joining Caribbean, Europe, North America GLI’s 21 laboratory locations spread and South America.

GAMING SUPPORT

Gaming Support focus on delivering affordability to the signage sector

G

aming Support Signs has prided itself on providing solutions for all conceivable problems and situations and has become a front row player in the casino sign industry.

Following the development of the company’s slim-line signs, the Gaming Support team has been working hard to bring to market another visually striking and affordable sign, the VacuForm sign.

According to Gaming Support, the VacuForm sign is lightweight and competitively priced.

“But we didn’t stop there,” the company stated. “Since technical developments have

Rene Huibers (left) and Harald Wagemaker

uzo-Happ took its latest range of parts, components and peripherals to the Slot Summit, which took place at Hôtel Barrière de Lille in France, on November 25-27.

René Huibers, the dedicated sales representative for casino operators around Europe, said Suzo’s customers continue to benefit from not only excellent support but also first-rate information on which components fit their needs.

Products on display included TransAct printers, as Suzo prepares to become the company’s exclusive partner for the US-based group from

S

taken flight, we have decided to devise a completely new rotating sign programme for which the price will no longer be an argument for not having them.

“Our latest innovation,

40 | casinoreview December 2014

the Sign Electronics Controller, gives an all-in-one solution. Using an iPad as a remote controller, you are now able to control the sign’s LED animation as well as jackpot celebrations, schedule its

operation, change the direction of the rotator, synchronise the signs to emphasize floor-wide jackpots and receive maintenance messages from signs if so required.”

January 1, 2015. A further key casino component on display on the Suzo-Happ stand included Crane Payment Innovations’ Cashflow banknote reader.

Harald Wagemaker, executive vice president of sales and marketing for Suzo’s gaming and casino division in Europe, said: “The Slot Summit provides so much fundamental information to casino operators and we have seen its success grow from summit to summit. We are proud to be a silver sponsor of the Slot Summit and so have the opportunity to take an active role here.”

CR146-p38-45-SupplierG_Coinslot NEW 11/12/2014 11:23 Page 3

ARISTOCRAT TECHNOLOGIES / GAMING SUPPORT / GLI / GTECH / IGT / KONAMI GAMING / SUZO-HAPP Macao Gaming Show November 17-19 2015

MACAO GAMING SHOW 2014: ‘MGS IS THE ONLY SHOW THAT IS TRULY REPRESENTATIVE OF THE ASIAN GAMING INDUSTRY...’ WWW.MACAOGAMINGSHOW.COM

WIDE AREA PROGRESSIVES

MULTIGAMES

Aristocrat launches Puerto Rico’s first WAP

GTech releases Terrific Teal Deluxe diversity multigame

ristocrat Technologies has launched Puerto Rico’s first wide area progressive (WAP) on the Batman Classic TV Series slot game powered by Wonder Wheels product.

The WAP contract is exclusive to Aristocrat in partnership with the Puerto Rico Tourism Company (PRTC). Under the terms of the deal, a total of 88 Batman Classic games will be placed in and linked across all 22 casinos in Puerto Rico.

All games went live across the island on November 25. Additionally, the video slot game’s $250,000 (E200,000) startup jackpot is the largest in Puerto Rico.

Andy Viera, director of gaming for the PRTC, said: “This is another exciting milestone in the history of gaming in Puerto Rico one of the most vibrant jurisdictions in the world. We are happy to

A

partner with Aristocrat to bring our first and only wide area progressive to life, especially on a game that has been proven to attract players, such as the Batman Classic TV Series Slot Game.”

Dallas Orchard, vice president of gaming operations for Aristocrat, added: “The Batman Classic TV Series slot game has been very successful in the field across North America, and we have every reason to expect players across Puerto Rico will enjoy the game’s mix of classic TV content, the independent wheel function, and of course, the wide area progressive and the island’s largest potential jackpot.”

The Batman game puts a triple s p i n

MARKETING

on fun on the casino floor. The multi-site progressive game features still and video imagery from the classic TV series with Adam West and three mechanical wheels that increase player engagement.

Gameplay is enhanced by stacked wilds, six themed bonus features, video clips from the TV series, and a highly anticipatory wheel feature trigger. Completely new to the industry is the independent wheel function of Wonder Wheels, which allows the players on the bank to continue uninterrupted when another player hits a trigger and engages wheel-mode.

AWARDS

IGT gets ‘thumbs Konami awarded up’ on Facebook dual honours at gaming awards I ceremony GT’s player-focused Facebook page has surpassed the million-fan milestone, cementing the group in the record books for having the gaming industry’s largest online jackpot-crazed virtual community.

IGT shares the excitement of wins with this captive community to support customers, further the company’s jackpot-paying legacy and build brand affinity for IGT’s millionaire-making games.

“It’s a very exciting milestone to garner a million fans

on our IGT Jackpots Facebook page,” said Susan Cartwright (pictured), IGT’s vice president of corporate communications. “We have worked diligently to cultivate an extremely engaged community of slot fanatics that we can engage to support wins at our customers’ properties.”

IGT’s fan-favourite interactive page was started in 2012 and quickly grew into a lively hub for celebrating big wins, swapping ‘good luck’ routines and sharing the love of gaming entertainment.

onami Gaming received first place honours in two categories at the 2015 Global Gaming Business Gaming & Technology Awards for new features available through its Synkros casino management system.

Synkros Promotional Printing was named Best Consumer Service Technology for providing operators with the ability to print offers, coupons, loyalty vouchers, while Synkros InfoSYNK was awarded Best Productivity Enhancement Technology for providing casinos the visibility to monitor performance and configuration of system components throughout its technology stack and infrastructure via a web-based monitoring tool.

Michael Ratner, director product management, systems at Konami, said: “These top honours for Synkros continue to signify to the industry that Konami is consistently introducing the latest features and enhancement available for casino enterprise manage-

K

ment systems. It’s all because we take the time to listen to our customers and turn their feedback into action, which the power and agility of the Synkros architecture allows us to do.

“This new technology challenges standing perceptions of slot machines by delivering a wealth of patron account services and benefits to any enabled game on the floor for greater customer convenience, operational efficiency, game performance, and marketing participation,” Ratner added.

He concluded by saying that the power of the award winning InfoSYNK encompassed the entirety of the Synkros environment, equipping IT staff with all the necessary tools to easily and instantly recognize inconsistent trends in system or network activity, which directly translates to quicker response, faster recovery, and even complete prevention of potential problems before they happen.

G

Tech has announced the release of Terrific Teal Deluxe, its brand new diversity multigame. Featuring top-ranking games packaged in unique game suites, the gaming and lottery supplier’s diversity allows players to select their preferred game type and volatility from one single gaming machine.

The Terrific Teal Deluxe edition, available on the Oxygen and Oxygen Slant cabinets, offers players the choice of five core game titles in addition to two top performing, stand-alone Cash Fever progressive titles and a classic, low-line game.

One multi-action game and a TENsion Slots title round out the offering in this suite.

For Line Action there are five core games available: Anvil of Gold, Queen of Olympus, Treasure Blast, Treasures of the Pyramids II and Jump & Win. Thriller Jackpots features the proven top-performing Cash Fever stand-alone progressive titles: Action Jack and Poseidon.

Classic Slots features the traditional volatile, lowline game: Juicy Royale.

The new game type Tension Slots adapts the successful core game title to a 10-line version: Sphinx Wild. In Multi Action players can play four games simultaneously, with the game title: Glorious King.

December 2014 casinoreview

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Supplier

News

MACAO GAMING SHOW 2014: Y‘AN INCREASING AMOUNT OF CASINO FLOOR SPACE DEDICATED TO POPULAR MASS MARK BEFORE THE END OF 2018.’WWW.MACAOGAMINGSHOW.COM EXHIBITION

Merkur Gaming preparing for ICE Gauselmann Group subsidiary Merkur Gaming will be at ExCel London from February 3-5 to showcase the very best from its portfolio. asino and gaming machine innovator Merkur Gaming will join its fellow Gauselmann Group subsidiaries at the upcoming ICE show in London to exhibit it range of eleven cabinets and 20 highdefinition games alongside a pair of banknote recyclers.

Merkur will operate at ExCel London from a 650sq.m stand, demonstrating just why ‘Made In Germany technology is the future for global gaming’.

The range of on-show

C

cabinets from the German firm will encompass the Evolution, Privilege Plus, WB 4, Vision Plus, Uno, Motion, Motion 2, Highflyer, Evolution SL, Avantgarde SLT and Ozone, which are tailored for individual gaming markets such as Spain, Great Britain, The Netherlands, Czech Republic, Italy and South Africa.

“Merkur Gaming offers so much more than just upright or slant top gaming machines,” a statement from Merkur Gaming con-

firmed.

“For example, the Highflyer is a slant top with a real difference. The upper monitor here seems to be floating in the air. Extensive marketing research followed by focused research and development work led to this solution where players can choose between two fundamental seating positions; either focusing on the lower gaming screen or choosing the gaming screen to be on the upper monitor with the desire to lean back and relax

to this unique gaming experience.

“Talking about unique, the Ozone is just that. This gaming orb allows the player to completely indulge him or herself in this wonderful gaming experience. It has the feeling of an amusement machine as the player sits inside the orb and is shielded from the outside world. The sound effects can naturally be made most use of with such a design.”

Merkur Gaming will be joined on stand by sister

firms adp Gauselmann, Blueprint Gaming and Cashpoint where it intends to show off its commitment to future investment with 20 new high-definition games.

In addition, the company is set to showcase its cash management knowledge with the innovative Merkur Dispenser 100 banknote recycler while the furtherimproved Merkur Dispenser Gold will also be on display.

“Never before has Merkur Gaming offered so many gaming possibilities,” said

LICENSED GAMES

BUSINESS AWARDS

The Flintstones game launches at Borgata

Euro Games wins Bulgarian business accolade

MS Gaming has marked the US launch of The Flintstones game at Borgata Hotel Casino and Spa in Atlantic City, New Jersey.

The Flintstones combines the sights, sounds and characters of the classic animated series with the striking Gamefield xD cabinet from WMS. Commenting on the installation, Ted Herzchel, vice president slot operations for Borgata, said: “Keeping our slot floor fresh and exciting for our players is extremely important to Borgata, and we are thrilled to be the first casino to offer The Flintstones game from WMS.” 42-inch horizonThe town of Bedrock is tal screen over a vertical 32brought to life thanks to a inch screen with a

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42 | casinoreview December 2014

mechanical wheel on the Gamefield xD cabinet. The 5x4 base game features both a Flintstones and a Rubbles array, and reels stretch up to 10 symbols high as Wild reels and multipliers are potentially added in The Flintstones mystery feature.

Unique bonus rounds, drawn straight from the iconic series, include the Bedrock bowling feature and the Dino Bonus.

Dean Ehrlich, senior vice president of global gaming operations for Scientific Games, said: “Borgata has always been a great partner to WMS, and we are very excited to work with them on the first installation of our exciting new brand, The Flintstones.”

B

ulgarian casino equipment manufacturer Euro Games Technology (EGT) bested 219 other firms recently to win the Company of the Audience accolade at the third annual Best Bulgarian Company awards organised by First Investment Bank.

Designed to recognise and honour some of the most successful and fastest-growing companies with Bulgarian managers and capital, this year’s awards featured double the number of entrants for the prestigious Company of the Audience prize and EGT finished with 16 percent more votes than its closest competitor.

Vladimir Dokov, general manager for EGT, was presented with a gilded

Ralf Markmann, managing director.

“We understand that each market has its own special requirements and can draw upon great internal knowledge from our long-standing multilingual team and naturally from a cabinet and games choice that incredibly keeps continuing to grow. Made In Germany with all the local market requirements in-built.

Merkur Gaming has so much to offer to global gaming.”

Bulgarian Rose silver coin at the awards ceremony which was staged at the City Art Gallery in Sofia.

“The Best Bulgarian Company competition is becoming a good tradition and an awaited event among the Bulgarian business society,” said Dokov.

“There were many worthy competitors for the prize this year and I’m especially proud that I’m holding precisely the audience award plaquette.

EGT has already established itself as a stable and fast-growing company in this country and abroad. Apart from the financial parameters, an invaluable barometer for our work is the audience’s appraisal. EGT is in the gaming industry and this appraisal is especially important for us.”

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DALLMEIER / EURO GAMES TECHNOLOGY / MERKUR GAMING / NOVOMATIC GROUP / WMS GAMING Macao Gaming Show November 17-19 2015

MASS MARKET GAMES, LEADS BLOOMBERG TO PROJECT STRONG GROWTH TO RETURN

SURVEILLANCE

Four Winds casinos in Michigan are relying on video surveillance technology with a ‘Made in Germany’ seal of quality from Dallmeier. our Winds Casinos, operator of three casinos in Michigan, US, has strengthened its relationship with German security and CCTV solutions group, Dallmeier.

A Dallmeier video system has been watching over Four Winds Hartford since August 2011.

Now, locations in Net Buffalo and in Dowagiac, the latter of which opened in April 2013, have also been equipped with Dallmeier technology.

Owned and operated by the Pokagon Band of Potawatomi

F

Dallmeier grows relationship with Michigan casino operator

Indians, Four Winds Hartford is synonymous with gambling fun in south-western Michigan. More than 550 slot machines and numerous gaming tables, including roulette and blackjack, are available to the guests across 4,800sq.m.

When the casino was built in 2011, and after extensive testing, a decision was made to utilise high-resolution HD network cameras by Dallmeier.

“Casinos always present a challenge for cameras,” said Marcel Zangger, director of operations for Dallmeier’s US division. “Lighting

conditions are often unfavourable, but even the slightest movements lasting only fractions of seconds at a gaming table have to be followed to allow unclear situations or attempts at cheating to be unequivocally resolved.”

The video system at Four Winds Hartford is controlled by the SeMSy management system.

From showing live images, to searching through the recordings in many different ways and on to controlling PTZ cameras, SeMSy offers a wide variety of possibilities which were individually

adapted to the requirements of Four Winds casinos.

The video system in Hartford proved itself so well in practical application that, after one year, Four Winds decided to replace the existing video system in its New Buffalo venue with Dallmeier technology. “We were always having problems with the old system,” said Stacey Soria, vice president of surveillance for the operator. “Now, over 1,800 cameras in the resort look after its guests and provide a safe and secure environment.”

Four Winds New Buffalo is located close to the border to Indiana, and with more than 12,000sq.m of floor space it is substantially larger than the casino in Hartford.

The Dallmeier solution was also put to use in the Four Winds Dowagiac casino, which opened its doors in 2013. This system keeps an eye on 300 of the latest slot machines and five gaming tables.

AREYOU

READY FOR

ACQUISITION

GiGames joins the Novomatic Group

A

ustria’s Novomatic Group has acquired, through its Spanish subsidiary Novomatic Gaming Spain, a majority shareholding in gaming machine machine manufacturer GiGames. A statement from GiGames said the partnership with Europe’s largest gaming group would ensure its continued growth as a gaming equipment manufacturer and distributor, and allow it to expand and improve its product offerings.

Novomatic added: “The Novomatic management is convinced that the longstanding experience of GiGames, as a local and successful manufacturer and operator, will greatly help the Company to consolidate and further enhance its future market position in the Spanish gaming sector, clearly acknowledged to be one of the most important gaming markets in Europe.”

2015?

HAPPY HOLIDAYS!

Best wishes for 2015 from all of us... gamingsupport.com www.gamingsupport.com December 2014 casinoreview

| 43

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SAGSE 2014

SAGSE 2014: A strong show in tough times

T With Argentine import restrictions warding off foreign investment, numbers were down once again at SAGSE Latin America - the continent’s largest industry trade show.

Despite this, the event retains a committed regional following and a determined approach to the region’s issues.

he Costa Salguero Conference Centre in Buenos Aires saw the return of its 22nd annual SAGSE Latin America trade event in November.

Taking place from 11 to 13 November, the show might have witnessed a second year of falling attendance figures, but this was only to be expected given the economic woes of Argentina, whose protectionist import restrictions have been in place since 2012. However, the show organisers insist that the quality of regional industry attendance remains high, and as such SAGSE retains its position as the premier industry event in Latin America.

“This year, we can remark a smaller level of visitor attendance,” conceded Alan Burak, newly appointed general manager of SAGSE event organisers Monografie. “But in terms of the quality of the show experience and those who attended SAGSE exceeded expectations.”

A breakdown of the attendance statistics shows that of 5,100 attendees, the vast majority - 78 per cent - were from Argentina. The remaining international audience was comprised largely of representatives from Uruguay, Brazil, Chile and Peru, with smaller numbers of visitors from Colombia, Panama, Mexico and Costa Rica.

A challenging economic environment wasn’t enough to keep both major European and North American suppliers at bay, however.

Bulgarian manufacturer Euro Games Technology (EGT) showcased its new Premier P 24/24 Up cabinet as well as a number of new multigame mixes. “Short term, continued import

restrictions mean that it’s not realistic to make ambitious plans for the sales,” admitted the company’s sales and marketing director, Stanislav Stanev. “But longer term, these products have proven very successful everywhere that they have been presented, and this makes me confident that ultimately, they’ll be well received in Argentina also.”

GLI was also an established presence: hosting a seminar for Argentinian gaming regulators on region specific challenges including new regulations, sports betting, forensics, carbon footprints and data-centre architecture.

Both iVizion and PayCheck showed alongside the JCM Global display of bill validators and printers, with the company also adding educational input to the show: conducting an operator training session, elucidating the full technical functionality of its products.

Meanwhile, IGT also made a key contribution to the SAGSE programme: in addition to its own stand, Janine Roth, vice president for IGT Latin America, was the keynote speaker of a networking event specifically targeting female gaming professionals. A hundred women joined her for Gaming Woman Latin America, where Roth underlined the growing contribution women made to the regional gaming sector.

In total, more than eighty companies showcased at SAGSE 2014.

“Crisis represents new opportunities,” Burak concluded. “This particular year is one in which the most agile companies will take greatest advantage.”

YOUNG BLOOD AGSE Latin America 2014 coincided with the announcement that Monografie, the company behind the show, had promoted business manager Alan Burak to the role of general manager, effective as of 1 December. Although only 33 years of age, Burak has already spent 12 years with the company, which he joined as a marketing graduate in 2002. Since then, he has served as show manager for both SAGSE Latin America and Centro America y Caribbean (held in Panama), and integrated networking and educational events (such as SAGSE University and Global Gaming Woman Latin America) into the SAGSE timeline.

The new appointment was heralded as “much deserved” by Monografie president Giorgio Gennari Litta. He added: “It recognises the constant and intelligent input Alan has provided to the company.”

S

December 2014 casinoreview

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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%

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995

5.9%

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CR146-p50-52-Business_Coinslot NEW 11/12/2014 13:15 Page 1

Business

& City News NEW DEVELOPMENTS

MERGERS & ACQUISITIONS

Scientific Games completes Bally acquisition

UK casino given green light

P As Scientific Games completes its high-profile acquisition of rival Bally Technologies, the company has unveiled a new executive leadership team that will take the group into 2015.

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cientific Games Corporation has completed its highprofile merger with Bally Technologies in a transaction valued at approximately $5.1bn (E4.1bn), including the refinancing of approximately $1.8bn ($1.4bn) of existing Bally net debt.

“Completing the Bally transaction brings together two exceptional organisations with a common culture of innovation and customer focus,” said Gavin Isaacs, president and chief executive officer of Scientific Games. “We are excited by the opportunities that will be created by combining each organisation’s core strengths in developing engaging gaming entertainment products, advanced technologies and systems, and providing value-added services to help our customers grow their rev-

48 | casinoreview December 2014

enues.

“Our mission is to become the premier gaming and lottery entertainment and technology company in the world by offering gaming and lottery operators a comprehensive and differentiated portfolio of high earning, player-appealing games and technology solutions,” Isaacs added. “By leveraging our excellence in the development of imaginative gaming entertainment with value-added services, we seek to become the partner of choice for our gaming and lottery customers.”

As the deal was completed, Scientific Games announced a new executive leadership team that will take the group into 2015. The executive team will oversee an organisation comprised of three operating units: gaming, lottery and interactive.

In addition to president and chief executive officer, Gavin Isaacs, and executive vice president and chief financial officer, Scott Schweinfurth, the executive leadership team of Scientific Games will include Derik Mooberry, as group chief executive for gaming.

With more than 20 years of gaming industry experience, Mooberry was most recently senior vice president of games, table game products and interactive research and development at Bally. He also oversaw Bally’s business in Mexico and South America.

James Kennedy has been named as group chief executive for the lottery segment, while Jordan Levin, former president of business development for WMS Gaming, has been appointed as president of the group’s interactive divi-

sion.

“Our new senior management team comprises some of the most accomplished executives in the gaming, lottery and interactive industries,” stated Isaacs. “I am very excited to have this team of great leaders from Scientific Games, WMS, Bally and SHFL Entertainment helping to lead the company forward.

“Our new organisational structure will focus on driving consistent and measurable progress on our goals of increasing profitable global growth and increasing free cash flow to pay down debt. The experience, leadership skill and commitment that each of our senior leaders brings to the company will be a significant influence in our integration efforts and development of solutions to bring value to our customers and shareholders.”

lans to develop a new casino in the historic city of Bath, UK, are moving forward, as Groupe Partouche and Global Gaming Ventures have been awarded a licence for their £4m (E5.1m) SawClose sheme, The casino, which will be run by the two companies, has been awarded a ‘small’ casino licence and will be able to operate from 11:00am until 11:30pm Monday to Saturday and from 11:00am until 11:00pm on Sunday.

Local authorities said the casino must display signs instructing customers to exit the building quietly, have a CCTV system in operation and train staff to adhere to the ‘Challenge 21’ scheme, which aims to deter underage patrons.

Several building are to be demolished to make way for the new casino complex in the city, which should see work start in early 2015.

CR146-p50-52-Business_Coinslot NEW 11/12/2014 12:55 Page 2

CENTURY CASINOS / FULL HOUSE RESORTS / GROUPE PARTOUCHE / SCIENTIFIC GAMES Macao Gaming Show November 17-19 2015

MACAO GAMING SHOW 2014: ‘CURRENT MOVEMENT WAS CAUSED IN PART BY A BIG PUSH FOR MASS MARKET VISITORS ON THE PART OF MOST OF THE MAJOR CASINOS [IN MACAU]’. WWW.MACAOGAMINGSHOW.COM

OPERATIONS

OFFSHORE GAMING

Executive reshuffle at Full House Resorts

Century Casinos announces additional cruise ship casino

Former Pinnacle Entertainment boss Daniel Lee has replaced Andre Hilliou as CEO of the US casino operator Full House Resorts.

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ollowing negotiations with a group of shareholders, US casino operator Full House Resorts has added four members to its board of directors while additionally accepting the resignations of executives Andre Hilliou and Mark Miller.

Las Vegas-based Full House Resorts owns three casinos located in the states of Indiana, Nevada and Mississippi while also operating the Grand Lodge Casino on the north shore of Lake Tahoe under a lease agreement with the Hyatt organisation.

It revealed that Daniel Lee, formerly chairman and CEO for regional casino operator Pinnacle Entertainment, has replaced Hilliou as CEO, while it has also added WH Baird Garrett, Raymond Hemmig, Ellis Landau, Bradley Tirpak and Craig Thomas to its board of directors subject to regulatory approvals.

“I would like to thank the incumbent Full House Resorts board for working with us to position the company for future success,” said Cornell Universityeducated Lee, who is a chartered financial analyst that served as CFO and senior finance and development vice-president for Mirage Resorts in the 1990s.

“I would also like to thank Andre and Mark for their many years of service with the company and wish them well in their future endeavours. Finally, I look

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forward to meeting all of the Full House Resorts employees and to working together to make Full House Resorts into a strong and successful company building value for shareholders.”

The reshuffle follows last month’s ‘topping off’ of Full House Resorts’ new 142-room hotel for the Silver Slipper Casino venue in Hancock County, Mississippi, which is located halfway between New Orleans and Biloxi.

“We are on schedule to open in the first quarter of 2015 and this topping off is an important step in completing what is sure to be a fantastic addition to the Silver Slipper Casino,” said Hilliou.

“From the moment we purchased the Silver Slipper Casino it was our intention to build a first-class hotel tower to welcome our loyal customers and invite new guests from further distances who will now have the option to stay

overnight at our exciting casino on the Gulf coast of Mississippi.”

Full House Resorts also recently unveiled its financial results for the third quarter showing a 12 per cent decrease year-on-year in total revenues to $32.9m (E26.7m) while adjusted earnings before interest, tax, depreciation and amortisation dropped by $100,000 (E81,359) when compared to the same three-month period in 2013 to $5.2m (E4.2m).

However, operating expenses fell by 14.5 per cent year-on-year to $30.3m (E24.6m) leading to the firm posting a net loss for the period of $800,000 (E651,005) compared to a deficit of $2.2m (E1.7m) for last year’s corresponding period.

“While we continue to face strong competitive and economic headwinds, we are encouraged by the improved results we achieved this quarter,” said Hilliou at the time.

More than a transaction.

A connection.

entury Casinos, the Colorado-based casino entertainment company, has extended its concession agreement with cruise ship company TUI Cruises.

The deal will see Century Casinos manage the casino operations on the soon-to-be-launched Mein Schiff 4 cruise ship.

The 2,500-guest vessel is currently being built and scheduled to commence operations in June 2015.

TUI Cruises is a joint venture between TUI and Royal Caribbean Cruises with focus on the premium all inclusive cruise market for Germanspeaking consumers. The group currently has two luxurious 1,900-guest ships (Mein Schiff 1, Mein Schiff 2) and one luxurious 2,500-guest ship (Mein Schiff 3) in service, with Century owning the gaming concession for all three vessels.

Century also holds gaming concessions for

other cruise ship companies, including Oceania Cruises, Regent Seven Seas Cruises, Windstar Cruises and Nova Star Cruises.

In the land-based sector, meanwhile, the Colorado casino operator has acquired a 7.5 per cent stake in Argentinean firm Mendoza Central Entretenimientos (MCE) for $1m (E800,000). MCE has the exclusive longterm concession agreement with the Provincial Institute of Gaming and Casinos of the Province of Mendoza to lease slot machines and provide technical services to the Casino de Mendoza, which is owned by the Province of Mendoza.

MCE has installed 600 slot machines at the Casino de Mendoza and, in return, receives 43 per cent of the revenue generated by the slot machines.

The group’s goal is to grow in the land-based and online gaming industry in Argentina.

Mein Schiff 2

www.jcmglobal.com December 2014 casinoreview

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CR146-p50-52-Business_Coinslot NEW 11/12/2014 11:34 Page 3

City News

ARISTOCRAT LEISURE / CAESARS ENTERTAINMENT / GPI / IGT Macao Gaming Show November 17-19 2015

MACAO GAMING SHOW 2014: ‘THE ERA OF COMPANIES WITH LARGE DEBTS AND LOW EQUITY WAS OVER, WITH NEW FINANCIAL MODELS REQUIRED FOR OPERATORS TO PROSPER.’ WWW.MACAOGAMINGSHOW.COM ARISTOCRAT LEISURE

IGT

FY revenues up for Aristocrat Revenues down for IGT in 2014 ecent successes in the US has seen Aristocrat Leisure boost its total revenues for the 12 months to the end of September by 6.9 per cent year-on-year to A$870.3m (E593m).

The Australian parent of Aristocrat Technologies also increased its annual earnings before interest, tax, depreciation and amortisation by 11.5 per cent year-on-year to A$209.8m (E143m), while its normalised profit after tax came in at A$118.1m (E80.4m), which was a 10.2 per cent rise when compared with the previous 12 months.

Earnings for the Sydney-based firm decreased by 115.3 per cent from the previous year’s profit of $107.2m (E73m) to a loss of A$16.4m (E11m) for the most recent 12 months. Aristocrat stated that this shortfall was due to “significant items” including the

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A$78m (E53m) write-down in the value of its Japan pachislot business and the sale of Aristocrat Lotteries at a cost of A$43.4m (E30m) to it bottom line.

October saw Aristocrat Leisure purchase American firm Video Gaming Technologies with CEO and managing director Jamie Odell declaring that the ‘bold move’ would better position the company for future growth.

“In addition, the disposal of our noncore lotteries business and the adjustment in the carrying value of the unique and volatile pachislot business in Japan reduce risk and management distraction going forward,” said Odell.

“Our results reflect a revitalised core product pipeline that is approaching full strength and driving consistent share and value growth in line with our strategy.”

GAMING PARTNERS INTERNATIONAL

GemGroup purchase improves GPI results lobal casino currency and table gaming equipment provider Gaming Partners International (GPI) has released its financial results for the third quarter of 2014 showing a 49.8 per cent increase year-on-year in total revenues to $20.3m (E16.4m).

The Las Vegas-based firm also posted a rise in third-quarter net income with its earnings for the three months to the end of September improving by an incredible 2,700 percent to $2.8m (E2.2m)

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from last year’s $100,000 (E81,139).

GPI revealed that overall revenues for the same three-month period last year amounted to $13.5m (E10.9m) and stated that the boost had been “directly attributable” to the business generated from its acquisition in July of GemGroup and improved currency sales in Asia.

“We do not expect any major casino openings for the remainder of 2014, but we are actively working on securing orders for 2015 casino openings,”

said Greg Gronau, president, CEO, treasurer and secretary of GPI. “Following our acquisition, we have started consolidating our card production in Blue Springs, Missouri.

This will result in approximately $400,000 (E324,681) of pre-tax onetime charges but it will provide significant savings in the manufacturing of cards. This is in line with our overall plan to streamline our operations and reduce our overheads and operating expenses.”

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nternational Game Technology (IGT) has reported a drop in revenues for 2014, as an increase in social gaming revenue failed to offset declines in product sales and gaming operations.

In the year to September 30, IGT booked revenues of $2.1bn (E1.7bn), down 12 per cent on the $2.3bn (E1.8bn) in fiscal 2013. Net income dropped nine per cent to $247.9m (E199m).

Revenue from gaming operations in 2014 dipped 11 per cent to $886.9m (E713m), primarily due to installed base declines, while product sales fell 22 per cent to $847m (E681m).

IGT’s interactive division continues to grow, with revenues up 22 per cent to $324.2m (E260m)

in fiscal 2014. Daily active users on the group’s flagship DoubleDown platform were up nine per cent year-on-year to 1,785 million.

“Our focus on profitability resulted in significant improvements in our gross margins for the year, and in our gross and operating margins for the fourth quarter, in large part due to cost saving actions we took earlier this year,” said Patti Hart, IGT chief executive officer.

“While we continue to see muted demand in our core business, our DoubleDown Casino business drove 28 per cent revenue growth for the full year while maintaining industry-leading player monetisation rates and growing daily active users.”

CAESARS ENTERTAINMENT

Caesars Entertainment facing bankruptcy lawsuit s it attempts to restructure $12.7bn (E10.3bn) of corporate debt, American casino operator Caesars Entertainment Corporation is now facing a lawsuit by UMB Bank over allegations it has been involved in ‘unimaginably brazen corporate looting’.

UMB Bank serves as the trustee for $1.25bn (E1.01bn) of Caesars Entertainment’s senior secured notes and is suing the Las Vegas-based firm including

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several of its operating Managed by American units, subsidiaries and lead- investor Paul Singer, UMB ership in the Chancery Bank alleges in its suit that Court of Delaware. recent financial manipula-

50 | casinoreview December 2014

tions by Caesars Entertainment have ‘stripped Caesars Entertainment Operating Company of eight of its most valuable hotel, casino and entertainment properties including a six-property stronghold in the heart of the Las Vegas Strip on terms that were patently unreasonable in order to enrich themselves at the expense of Caesars Entertainment Operating Company creditors’.

Struggling with plunging revenues due to increased

competition, Caesars Entertainment through its Caesars Entertainment Operating Company subsidiary recently shuttered its Showboat Casino in Atlantic City in addition to the Harrah’s Tunica property in Mississippi with UMB Bank asserting that these and other moves have ‘robbed’ the company of more than $4bn (E3.2bn) in value.

The lawsuit seeks to have Caesars Entertainment placed into chapter 11

bankruptcy before December 19 whereas the defendant is planning to wait until January.

“We believe the claims in this lawsuit are baseless and that this filing is an attempt to derail constructive talks that the company is having concerning a restructuring of Caesars Entertainment Operating Company and we will defend ourselves vigorously,” read a statement from Caesars Entertainment.

CR146-p50-52-Business_Coinslot NEW 11/12/2014 11:34 Page 4

People

APEX GAMING / CASINO TECHNOLOGY / GLI / TCS JOHN HUXLEY Macao Gaming Show November 17-19 2015

MACAO GAMING SHOW 2014: ‘IT’S “THREE STEPS FORWARD AND TWO STEPS BACK,” BUT THE MOOD IS BUOYANT ON THE FUTURE OF INTEGRATED RESORTS IN JAPAN.’ WWW.MACAOGAMINGSHOW.COM

TCS JOHN HUXLEY

CASINO TECHNOLOGY

TCS John Huxley names Liscio head of new Table Games Division Global gaming supplier TCS John Huxley has appointed industry veteran Bobby Liscio to lead its newly created Table Games Division.

CS John Huxley has appointed industry games expert Bobby Liscio as the head of its new Table Games Division. In the role, Liscio will be responsible for sourcing, developing and expanding the company’s extensive games portfolio, which includes Proprietary Table Games and Side Bets, as well as a variety of progressive and bonusing options that are available through the GFL Bonusing platform.

He will also work with TCS John Huxley sales

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teams worldwide, to assist with the implementation and installation of table games and to provide support and training to casino operators.

Liscio’s career spans 35 years of casino gaming experience, 27 of which have been in operations having started as a craps dealer before being promoted to various casino floor operations management positions and finally to casino manager. For the last eight years he has worked at Bally in its Professional Services team,

APEX GAMING

GLI AUSTRALIA

Özer takes on global role at Apex

Harrison joins GLI Australia

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aming Laboratories International (GLI) has appointed Phil Harrison to the position of regulator development, compliance and quality assurance senior manager for its GLI Australia subsidiary.

GLI, which recently celebrated its 25th anniversary, confirmed that Harrison will work closely with regulators and clients throughout its Australian and Asian marketplaces from its facility in Adelaide, South Australia.

“We are very excited to welcome Phil to the GLI Australia team,” said Ian Hughes, CEO for GLI Australia. “His extensive and diverse experience, combined with his commitment and dedication to standards and responsible gambling, make Phil an incredibly valuable asset to GLI and to our clients throughout the Australia and Asian marketplaces.”

Harrison’s experience in the gaming industry dates to 1994 when gaming

PEX gaming has appointed Kubilay Özer as its new global sales director. A position designed specifically to reflect the growing international demand for the company’s solutions, including the Pinnacle gaming machines, Özer’s role will be to manage worldwide sales in all markets.

Johannes Weissengruber, chairman and founder of APEX gaming, said: “We are setting the management structure, knowing that our company motto to take gaming to the ‘next level’ has been mirrored in the demand for our solutions. We are thrilled to have gained such a professional gaming person in Kubilay Özer who will be responsible for the sales department, covering all markets and all products. I have great respect for Kubilay.

This appointment is the natural next step after having appointed Max Pessnegger as chief executive officer. We are taking our management structure to the next level.” Özer added: “I have had the pleasure to work closely together with the APEX team over the past years and witness the company growth thanks to its innovative solutions. APEX has so much to offer to the gaming industry.

The committed team is continually looking to create new solutions that bring true value to the operators and additional gaming entertainment to players.

sharing his insight with customers on how to maximize Commenting on his appointment, Bobby Liscio said: “I am very excited to be joining TCS John Huxley at a time when table games continue to grow in popularity. As the leading supplier in table game technology, our focus is to develop and increase our offering of proprietary table games and side bets, to provide rewarding levels of performance to operators and added stimulation and fun to players.”

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Sascha Blodau appointed as a CFO of Casino Technology

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ndustry veteran Sascha Blodau was recently appointed as a chief financial officer of Casino Technology to facilitate the Bulgaria-based company’s corporate strategy of global consolidation and growth.

As a long-term managing director of Bally Wulff Games and Entertainment, Blodau has a significant experience in positioning and strengthening the corporate financial structure, establishing capital investment and managing investor relationships. He was one of the main driving forces behind the acquisition of the Germany-based manufacturer Bally Wulff by Schmidt Group in 2007.

“The appointment of Sascha Blodau as a chief financial officer of Casino Technology is in line with the company’s strategy of streamlining its activities and further expanding on the global gaming markets,” said Milo Borissov, founder and president of Casino Technology. “We are confident that with his experience and solid financial background Sascha will provide a highly valuable contribution to achieving these goals.”

machines were first introduced to South Australia. In his role as inspector, systems auditor and manager for the South Australia Liquor and Gambling Commissioner, he worked with all major stakeholders throughout Australia and Asia including regulators, manufacturers and operators.

December 2014 casinoreview

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Sectors

EDICT EGAMING / GAMEACCOUNT NETWORK / PAF

& Services

TECHNOLOGY

SECTOR NEWS: JW@SJC.CO.UK

Paf launches at-home slot machine arm

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he Åland gaming company Paf is launching the world’s first slot machine arm for home use, the iBandit.

The iBandit is a unique product comprising a mixture of natural materials, solid oak, durable steel and sophisticated technology. It connects to a player’s computer through a USB port for the ultimate online casino experience in the comfort of the home.

The product has been developed to commemorate the world’s largest online slot machine win of E17.9m, paid out by Paf to one of their players in 2013.

“The iBandit is a fantastic experimental product that we developed at Paf with the Nordic Society For Invention

Paf has taken inspiration from traditional casinos to develop a unique product for use in the home.

ONLINE GAMING

and Discovery (NSID) to show that slot machine games can be just as enjoyable at home as in a traditional casino,” said Mattias Lindquist, communications manager at Paf. “Paf itself runs physical casinos both at sea and on land, in addition to our online casino. The iBandit is therefore a product that forms a transparent link between our businesses.”

Per Cromwell, inventor at the NSID, added: “We at NSID see the potential of working with real physical experiences in the digital world. We are convinced that the future of digital development will involve an entirely new way of interacting.

“With the iBandit, our aim is to create the perfect physical slot machine arm for the ultimate slot machine experience online.”

PARTNERSHIP

GAN extends Pennsylvania casino deal GameAccount and Parx Casino finalise a deal for Simulated Gaming onproperty gaming & regulated Internet gaming in Pennsylvania

52 | casinoreview December 2014

ameAccount Network (GAN) has signed an agreement with the Pennsylvania, US-based Parx Casino to launch a Simulated Gaming online experience for new customers and existing patrons. The agreement will allow for all forms of online gaming with selected third-party remote gaming servers to be integrated into the GameSTACK internet gaming system and managed via GAN’s iSight Back Office.

The move comes in anticipation of the regulation of internet gaming in the state, plans for which were revealed in July.

Dermot Smurfit, CEO of GAN, said: “In 2015 we anticipate scaling Parx’s Simulated Gaming business through significant online marketing activities designed to acquire players online and drive them on-property to Parx Casino in Bensalem, Pennsylvania.”

John Dixon, CTO of Greenwood Entertainment and Racing, which owns Parx Casino, added: “GameAccount has demonstrated its regulated gaming capability in New Jersey and the merits of Simulated Gaming when integrated with a casino management system.

“By deploying their system on-property, Parx Casino [will be] well prepared in the event regulation of realmoney internet gaming emerges in the state of Pennsylvania.”

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edict signs online agreement with LeoVegas ames platform developer edict egaming has secured another online partnership deal by signing with international mobile and tablet casino operator LeoVegas.

Under terms of the agreement, the Germany-based online casino solutions provider will offer a selection of Merkur Gaming slot games to LeoVegas’ global player base, including its newly developed edict Game Bridge which allows large operators to integrate the Gauselmann Group’s subsidiary slots to their game portfolio via an API. Dominic-Daniel Lienard, CEO of edict, said: “This is a

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great opportunity for LeoVegas and edict. I am sure their players base will enjoy the unique experience that the Merkur slot games offer and we can gain from their mobile experience.”

Lienard continued by saying that the first Merkur slots will be available in HTML5, and go live with LeoVegas, in early 2015.

Edict egaming, which has been specialising in casino solutions for more than 15 years, said in a statement that the edict Game Bridge currently offers 10 Merkur slots to large sports betting or casino operators. Among the games are Gauselmann’s Double Triple Chance, Magic Mirror and 221B Baker Street.

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

CR146-p54-55-Events_Coinslot NEW 11/12/2014 12:11 Page 1

Events

& Diary

EVENTS NEWS: JW@SJC.CO.UK

ICE 2015

ICE 2015

ICE: Germany’s international trade show

The future’s Bright for ICE

T

B Raif Oymen, director of global engineering, The Bright Group

With confirmation of exhibitor attendance from New South Wales manufacturers The Bright Group, the global appeal of London’s upcoming ICE show is seemingly confirmed.

ased in Silverwater, New South Wales, Australian casino component manufacturer The Bright Group is preparing to embark on what it terms an ‘international voyage of discovery’ as it transports its people, products and presentation over 10,000 miles and across 11 time zones for its first ever exhibition at February’s ICE show in London. Officially the furthest travelled exhibitor on the show floor, The Bright Group (TBG) is taking a stand presence at ICE in order to further its aspirations of international expansion.

“Having previously been to ICE as visitors, we fully understand the show's importance to the global gaming industry,” claimed the company’s director for global engineering, Raif Oymen. “As we continue our international expansion outside of our established Australasian and North American regions, we believe attending ICE sends out the signals that we are ready and extremely serious about the markets that exist in Europe.”

It’s to this end that the company’s production and R&D departments have been preparing a range of products catered specifically to European tastes: “This includes representative pieces demonstrating our design capability, attraction features for machine toppers and top boxes, as well as two new centrepiece products - the

Magnum topper range and the Sound Chair,” added Oymen.

As an inception showing, TBG plans to take more away from their London exhibition than an increase in global brand awareness and sales figures: “Our presence at the show allows us to see first-hand the latest products from the markets in Europe,” stated Oymen. “It will also provide a valued opportunity to meet with associates and clients, as well as receive valuable feedback on our own offerings.”

For its organisers, the fact that the show’s reputation is enough to entice the likes of Oymen bodes well. “ICE has been described as the world’s favourite gaming exhibition and the experience of TBG endorses and reflects that billing,” commented ICE marketing director Jo Mayer. For her, the show’s increasing international leverage aligns well with the 2015 thematic. “Our campaign theme for 2015 is Discover,” she explained, “and there's no doubt that with its community of international exhibitors drawn from over 50 nations there’ll be opportunity to discover and explore the latest gaming innovations at ICE in a way which no other exhibition can rival.”

Early indications suggest the upcoming ICE is on course to eclipse the success of its 2014 iteration: when 23,506 attendees from a record 156 nations travelled to London to browse the wares of 515 independent exhibitors.

he cancellation of the IMA trade show, scheduled to take place in Düsseldorf in January 2015, will effectively make London’s ICE Totally Gaming the German industry’s “international trade show” according to Lars Rogge, managing director of Bally Wulff, one of the principal German machine manufacturers.

“I would expect there to be at least 300 of the most important German operators visiting London for the show,” he said. “For us - and our fellow machine-makers in Germany - ICE will therefore become our principal international showcase. We will feature our machines for Italy and Spain there.”

Responding to the news Kate Chambers, portfolio director responsible for ICE, said: “When Germany had no IMA show in 2013, we welcomed a large number of German gaming professionals to what was the first year at our new home at ExCeL. “As part of the broader gaming family we sympathise with the complex political situation, which has caused the cancellation of IMA. ICE is a unique meeting place for the international gaming industry and we look forward to welcoming German operators in even bigger numbers to London in February.”

With what is the busiest show floor in gaming, ICE features a significant number of German exhibitors including the Gauselmann Group subsidiary Merkur Gaming, which confirmed that it will be bringing an extensive selection of gaming cabinets to ICE.

CASINO MARKETING CONFERENCE

Marketing conference addresses industry challenges

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he Casino Marketing and Technology Conference takes place at the Rio in Las Vegas on July 14-16, 2015.

More than 100 different gaming operators and industry suppliers attended the 2014 event, which addressed marketing challenges across all sectors of the business, including commercial casinos, tribal casinos and racetrack casinos.

In 2015, the Casino Marketing and Technology Conference will once again

54 | casinoreview December 2014

offer the popular Host Development Conference. This one and a half-day programme will run on July 13-14 The Host Developer Conference presents an advanced training programme that will focus on developing and segmenting qualified sales leads; creating compensation and specialisation in a new player development model; managing reinvestment; and understanding the true value of a player through mathematics.

CR146-p54-55-Events_Coinslot NEW 11/12/2014 12:13 Page 2

CASINO MARKETING CONFERENCE / ENADA PRIMAVERA / FADJA / ICE 2015 / INTERNATIONAL CASINO CONFERENCE

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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.

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| DIARY

INTERNATIONAL CASINO CONFERENCE

London’s Hippodrome to host International Casino Conference London’s historic Hippodrome Theatre has been chosen as the venue for February’s International Casino Conference.

JANUARY 2015 13-15 EAG International Expo ExCeL London Exhibition Centre, London, UK www.eagexpo.com

FEBRUARY 2015 ondon’s iconic Hippodrome Casino has been chosen as the venue for the upcoming 2015 International Casino Conference (ICC), taking place on Monday 2 February. Organised jointly

by Clarion Events and the European Casino Association, the ICC serves as the curtain raiser to ICE - the world’s biggest B2B gaming event – which runs from 3rd-5th February at London’s ExCeL Centre.

ICE marketing director, Jo Mayer, said: “This is the first time that the International Casino Conference has been taken out of a conventional conference-style setting and we could not have wished for a more prestigious and appropriate venue than the Hippodrome in London’s Leicester Square. Following a three-year renovation programme costing £40m, the Hippodrome was named Casino Of The Year 2013, just six months after it opened.

With a cabaret theatre attracting international stars including Dionne Warwick and Joss Stone and critically claimed restaurants and bars - there’s no doubt that the Hippodrome is no ordinary casino and a perfect venue at

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which to host our ICC delegates.”

Co-organised with the European Casino Association, the 2015 ICC will bring together board members of all of the largest casino groups in Europe.

The Conference will provide delegates with a platform to exchange views on the most burning issues affecting the land-based industry while giving them access to key speakers including Harrie Temmink, deputy head, online & postal unit, DG Internal Market & Services at the European Commission.

The ICC is one of eight targeted learning events that cover all of gaming’s vertical markets. Delegates can opt for an access-allareas passport, which gives the freedom to explore the entire ICE Conferences programme or alternatively select a single conference of interest. In addition to the ICC the programme comprises: Betmarkets; Cross-Platform & Multi-Channel Gaming; Cybercrime, Security & Regulatory Compliance; Data Insight & Business Intelligence; Game Design & Development; Lotteries For The Future; and, World Regulatory Briefing.

ENADA PRIMAVERA

3-5 ICE Totally Gaming ExCeL London Exhibition Centre, London UK www.icetotallygaming.com

MARCH 2015 9-11 Gaming Technology Conference Caesars Palace, Las Vegas, Nevada, US www.gamingtechnologyconf.com 18-19 FADJA Peru Atlantic City Convention & Entertainment Centre, Lima, Peru www.fadja.com.pe 25-26 Caribbean Gaming Show & Summit 2015 San Juan, Puerto Rico www.caribbeangamingshow.com 30-1 Indian Gaming San Diego San Diego Convention Center, San Diego, California, US www.indiangaming.org/events/tradeshow

APRIL 2015 8-9 FADJA Colombia Corferias, Bogota, Colombia info@fadja.com

MAY 2015 5-7 Southern Gaming Summit & Bingo World Mississippi Coast Coliseum & Convention Centre, Biloxi, Mississippi, US www.sgsummit.com

FADJA 2015

Enada Spring ready for Rimini Dates confirmed for

T

he 27th edition of the Enada Spring international amusement and gaming exhibition is set to take place at the Rimini Expo Centre from March 18-20 with organisers confident of topping last year’s attendance figure.

Although the 2014 edition of the Italian event saw visitor numbers drop by just over six percent year-on-year to 25,208, trade show specialist Rimini Fiera is assured that the over 400 exhibitors set for March alongside a full programme of meetings and debates will once again draw the best and brightest from the global gaming and amusement industries to the northern Adriatic seaside resort.

Set to occupy 40,000 square metres at the west end of the Rimini Expo Centre and with support from the SAPAR and Euromat trade associations, Enada Spring will provide those in attendance with the ability to check out the latest products, services and technologies in the gaming and amusement sectors. Everything from slot machines, video lottery terminals and video games will be on show alongside pinball machines, fussball units and billiard tables. Visitors will also be able to check out payment systems, furnishings, fittings and services for amusement arcades and bingo halls plus a complete range of technologies for online and mobile gaming.

FADJA 2015

F

eria Americana de Juegos de Azar (FADJA), the South American gaming trade show, will take place at Corferias in Bogata, Colomba, on April 8-9, 2015.

With industry eyes firmly on high-growth markets across the continent, FADJA has grown to be a leading event for casino operators in the region.

More than 70 manufacturers and suppliers exhibited at the 2014 edition of the show, including Gaming Laboratories International (GLI), Casino Technology, Bally Technologies, Gold Club, WMS Gaming, Gtech, Novomatic, Aristocrat Technologies and Crane Payment Innovations (CPI).

December 2014 casinoreview

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