Global Gaming Business, August 2018

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GGB Global Gaming Business Magazine

August 2018 • Vol. 17 • No. 8 • $10

Stand Pat or Move Forward?

TRIBES & SPORTS BETTING ETGs AND THE NEW PIT IS ESPORTS THE NEW DFS? REBUCK & REGULATION

The AGA in the post-Geoff Freeman period

Wire to Wire

How will the repeal of PASPA affect cross-border

sports betting?

Boardwalk

Bonanza What two new casinos mean for

Atlantic City

Association of Gaming Equipment Manufacturers

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The world’s best casinos choose the world’s best Roulette Wheels

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CONTENTS

Vol. 17 • No. 8

august

Global Gaming Business Magazine

COLUMNS

22 COVER STORY Freeman’s AGA As Geoff Freeman moves on from his position of five years as president and CEO of the American Gaming Association, the industry reflects on how he changed and grew the organization, bringing in tribal members and other new stakeholders, as well as how he brought the industry together on major issues like sports betting, problem gambling and battling misconceptions about gaming.

By Roger Gros

46

The New Pit Technology advancements in electronic table games and data management are changing the face of the pit.

By Dave Bontempo

52

16

Atlantic City Rises After two major resorts opened on the same day, rising from the ashes of formerly shuttered properties, Atlantic City looks to the future with renewed optimism.

Allie Barth

14 Fantini’s Finance Atlantic City Action Frank Fantini

36 Table Games Quick! Make a Decision Roger Snow

DEPARTMENTS

FEATURES 16

12 AGA Upward to Elevate

Regulating Esports As the esports phenomenon evolves into a casino attraction on which bets can be placed, operators consider how to approach its regulation.

By Richard Schuetz

52

By Patrick Roberts and Frank Legato

6

The Agenda

8

By the Numbers

10 5 Questions 15 AGEM 50 Emerging Leaders With Aristocrat Technologies’ Siobhan Lane, Choctaw Casinos’ Skyelar Perkins, and Wightman Telecom’s Adam Siefert

56 Frankly Speaking 58 New Game Review 60 Goods & Services 64 Cutting Edge 65 People

28

Celebrating Women in Gaming The third annual “Kick Up Your Heels,” produced by the Global Gaming Women organization at the G2E show, raises vital funds dedicated to the advancement of women in gaming.

66 Casino Communications With David Rebuck, Director, New Jersey Division of Gaming Enforcement

SPORTS BETTING C E N T R A L

By Patrick Roberts

30

Tribes and the Internet With the advent of legal sports betting throughout the U.S., gaming tribes face pressure to institute online and mobile wagering.

By Dave Palermo 4

Global Gaming Business AUGUST 2018

A new GGB department focuses on the issues and news stories surrounding the emergence of legal sports betting in the U.S.

Feature 38 Sports Betting and the Wire Act An expert in gaming law examines whether the U.S. Supreme Court’s decision that opened the door to legal sports betting also reinterpreted the federal Wire Act to allow interstate wagering.

By Daniel Wallach

42 Sports Betting News Roundup

Good stuff is coming on the Arc Double™, and you’re invited to the party.

Sing along with Fred, Keith, Kate and Cindy. And when the Rock Lobster makes an appearance, that’s when things really get groovy.

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THE AGENDA

Tips on Tokes

Vol. 17 • No. 8 • AUGUST 2018 Roger Gros, Publisher | rgros@ggbmagazine.com twitter: @GlobalGamingBiz Frank Legato, Editor | flegato@ggbmagazine.com twitter: @FranklySpeakn Monica Cooley, Art Director | mcooley@ggbmagazine.com

Roger Gros, Publisher

Lauren Byrge, Director, Sales & Marketing LaurenB@GGBmagazine.com Floyd Sembler, Business Development Manager fsembler@ggbmagazine.com

W

hen I was younger, I had a few jobs where tips were an important part of my salary. One of those jobs was as a dealer, where tips (or tokes as we called them) are the most important element of your salary. I was a dealer in three of the Atlantic City casinos for a total of about six years early on, and sometimes I wondered about the system that split up all that tip money. There was a state regulation that required casinos to split the tokes on a weekly basis, based on the hours worked that week by all the dealers.

When I first started out, I dealt $2 and $5 blackjack in the busiest casinos I’ve ever seen. On some nights, you took your 20-minute break in the pit, because the crowds were so thick, you couldn’t get to the dealers’ lounge and back in time. I didn’t see many tokes at those low-limit games, but when I graduated to baccarat, I saw much more action and many more tokes.

Now, some of my supervisors in those days had worked in big Vegas casinos where either they kept their own tokes or divided them by shift or by day. So the busier shifts or days got better tips because they worked harder. In Atlantic City, dealers with seniority who had weekends off got paid the same as dealers who worked the busiest days and worst shifts.

Last month, I was reading a blog on LinkedIn by Tangam executives Ari Mizrahi and Victor Tanase talking about how attitude can affect a dealer’s ability to earn tokes. (The blog can be found on the Tangam website, Tangamgaming.com.)

“Earning higher tips is all about having good customer service skills: smiling when appropriate, having a professional yet friendly approach, addressing players by name, and most important, celebrating players’ wins,” the authors write.

They go on to discuss how to build a high toke rate by managing the games correctly. A dealer can have the best attitude in the house, but when there are too many or too few players, that attitude can go for nothing. Managers must understand how to deftly control the number of dealers versus the number of players, and not

6

Global Gaming Business AUGUST 2018

leave the company short during a surge in players or leave too many dealers on the tables as demand falls off.

They also talk about the methods of toke distribution—shift versus day versus weekly. This can be crucial for the reasons I stated above.

With distribution on a shift or daily basis, you’ll have your best dealers—or at least those with seniority—bidding for the busiest shifts and days, providing your best players with your best dealers. The weekly distribution model discourages that.

But I wonder why we can’t go back to the old days where dealers kept their own tips. It happens in the poker rooms; why couldn’t it work on the casino floor? Yes, I know there’s a fine line between being friendly and helpful and hustling tips (a definite problem), but it can be controlled by attentive supervisors and pit bosses.

I also know there would be some IRS concerns, but again, that can be handled rather simply.

One time when I was a baccarat dealer, I spent a week with a couple of crews dealing 12hour shifts to a high roller from Hong Kong playing $50,000 a hand. After about a week he was even, but he recognized the great service we gave him and wanted to buy all the dealers Rolex watches as a gift. Management wouldn’t allow it because state law prohibited individual toking of dealers.

But can you imagine if your dealers could be recognized by your best players, and how that would change their approach to customer service? It would encourage great service and a positive attitude at all times. Would it take a little more policing of the relationship between players and dealers? Yes, but that’s why we have cameras and surveillance (which as a side note, need to be upgraded in almost every casino).

I know it’s occurring in some small Nevada and California casinos but haven’t heard any results. And why not try it in a destination resort? You let your bellman, valet parkers, waiters and waitresses, bartenders, etc. keep their own tips. Why not your dealers? Let’s give it a try and see how it works!

Becky Kingman-Gros, Chief Operating Officer bkingros@ggbmagazine.com Lisa Johnson, Communications Advisor lisa@lisajohnsoncommunications.com twitter: @LisaJohnsonPR Columnists Allie Barth | Frank Fantini twitter: @FantiniResearch Roger Snow Contributing Editors Dave Bontempo twitter: @bontempomedia Dave Palermo twitter: @DavePalermo4 Patrick Roberts | Richard Schuetz | William Sokolic Daniel Wallach twitter: @wallachlegal Brian Wyman | Tom Zitt

EDITORIAL ADVISORY BOARD Rino Armeni, President, Armeni Enterprises

•

Mark A. Birtha, Senior Vice President & General Manager, Hard Rock International

• Julie Brinkerhoff-Jacobs, President, Lifescapes International

• Nicholas Casiello Jr., Shareholder, Fox Rothschild

• Jeffrey Compton, Publisher, CDC E-Reports twitter: @CDCNewswire

• Geoff Freeman, President & CEO, American Gaming Association twitter: @GeoffFreemanAGA

• Dean Macomber, President, Macomber International, Inc.

• Stephen Martino, Vice President & Chief Compliance Officer, MGM Resorts International, twitter: @stephenmartino

• Jim Rafferty, President, Rafferty & Associates

• Thomas Reilly, Vice President Systems Sales, Scientific Games

• Steven M. Rittvo, Chairman Emeritus, The Innovation Group twitter: @InnovGrp

• Katherine Spilde, Executive Director, Sycuan Gaming Institute, San Diego State University, twitter: @kspilde

• Ernie Stevens, Jr., Chairman, National Indian Gaming Association twitter: @NIGA1985

• Roy Student, President, Applied Management Strategies

• David D. Waddell, Partner Regulatory Management Counselors PC Casino Connection International LLC. 901 American Pacific Drive, Suite 180 • Henderson, Nevada 89014 702-248-1565 • 702-248-1567 (fax) www.ggbmagazine.com The views and opinions expressed by the writers and columnists of GLOBAL GAMING BUSINESS are not necessarily the views of the publisher or editor.

Copyright 2018 Global Gaming Business LLC. Henderson, Nevada 89014 GLOBAL GAMING BUSINESS is published monthly by Casino Connection International, LLC. Printed in Nevada, USA. Postmaster: Send Change of Address forms to: 901 American Pacific Dr, Suite 180, Henderson, NV 89014 Official Publication

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BY THE

NUMBERS

Good Vs. NoT so Good H

ow do online gamblers make a decision about where to play when their choices are legal and regulated “onshore” gambling sites or gray or blacklisted offshore sites? That’s what a group of Australian researchers wanted to know when they published a study called “Consumer Engagement With and Perceptions of Offshore Online Gambling Sites.” With global iGaming revenue now approaching US$37 billion, the risks of the offshore, illegal sites are not fully understood by the gambling public. This study was designed to shed some light onto the subject and lined up almost 3,200 responders. Lead author Sally M. Gainsbury of the University of Sydney, Australia was joined by Alex MT Russell and Nerilee Hing from Central Queensland University, and Alex Blaszczynski from the University of Sydney. The chart at right outlines the importance of various influences in the choice of a gambling site, legal or illegal. To obtain a copy of the full report, visit greo.ca and search for the report’s title.

Theo Net Win Index vs. House Average

INFLUENCE

ONSHORE

OFFSHORE

Reputation Advertising/marketing Price including bonuses, free credits, odds, payout rates

28.9 11.2

35.6 8.8

39.3

49.7

Greater number of betting options and games available

21.7

25.9

Jurisdiction where site is regulated 8.4

6.4

Legally provided/licensed site Fast payout rates Customer protection: fairness of games, security of deposits and account information Responsible gambling tools & resources Few personal details required Better game experience/ interface Software used Number of gambling forms available

16.4 14.2

9.8 17.3

17.2

18.9

5.4 1.7

2.8 3.4

8.2 4.2

15.5 7.9

2.9

3.5

Above Average

I

n each issue of the Eilers Fantini Central Game Performance Database, thousands of slot machines and their manufacturers are rated for profitability and efficiency. One of the areas that is compared is the “Theo Net Win Index vs. House Average,” meaning machines manufactured by these companies are performing better than the average machines on the slot floor.

This chart reviews games owned by casinos, not leased or “participation” games. To obtain a copy of the Eilers Fantini Central Game Performance Database, visit fantiniresearch.com.

8

Global Gaming Business AUGUST 2018

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NUTSHELL

“They

5Questions Christopher Justice President, Global Payments Gaming Solutions hristopher Justice is president of the Gaming Solutions division of Global Payments. A 25-year veteran Cservices of the payments industry, Justice recently joined Global Payments, which provides a wide range of to the gaming industry, both land-based and online. He spoke with GGB Publisher Roger Gros from his offices in Las Vegas in July. To hear a full podcast of this interview, visit GGBMagazine.com.

GGB: There still is quite a bit of difficulty in making and receiving payments for online gaming.

Why is that?

Justice: In the credit card world, it’s definitely a significant issue. While a financial institution may un-

1 2 3 4 5

derwrite a cardholder for a particular credit line, that doesn’t necessarily mean that a bank is willing to stand behind that cardholder when placing a bet. It’s one thing to spend $500 on a purchase at Best Buy, but it’s another entirely to put $5,000 down on your favorite team to win. If you don’t win, the bank might not want to make good on that particular transaction. And banks still have a significant apprehension about being in the gaming market, just due to the reputational risk associated with those transactions.

Isn’t it somewhat odd, since good players have high credit limits and usually pay quickly?

Yes, that’s true. They have good standing within the community, but banks are continuing to restrict their funds.

And that’s where Global Payments comes in from an iGaming, iLottery and sports betting approach.

We deal with close to 500 brick-and-mortar and digital casinos all over the U.S. and Canada. And we also deal with every one of the iGaming properties in New Jersey. Depending on the site, we are 40 percent to 60 percent of their actual wallet. We provide that high level of authorization that the players expect when trying to participate in gaming. And the sites need that high approval rate, as well. It all boils down to the company’s longstanding expertise, technology and process.

Why wasn’t the special code created for legal iGaming the answer?

Visa and Mastercard create these “merchant category codes” and adjust them twice a year for market conditions. They did create a code for legal iGaming, and now with the repeal of PASPA they’ve created codes for sports betting. So they’ve got the rules and the infrastructure, but that still doesn’t require a financial institution that is holding all of the risk for the cardholder to actually participate. Even though it exists, it still doesn’t mean the major banks want to participate in iGaming or sports betting.

Tell us how the legalization of sports betting is going to impact online gaming payments.

I don’t think it’s going to do anything to improve approval rates on credit or debit cards. While Visa-Mastercard have created codes and procedures, it doesn’t appear that this is going to change anything that financial institutions have already decided to do.

From the Global Payments perspective, with our VIP program, we’re still providing approval rates exceeding 94 percent across all of the locations we service. We’re still providing the stability of an $18 billion company standing behind and underwriting the players.

Even though Nevada allows mobile sports betting, you still have to go to a casino or bar to make a deposit or collect winnings. Will that change?

I would certainly hope so. A lot of the reason those problems exist is because of regulatory constraints. I wonder now that sports betting is going to go nationwide whether with the added competition, Nevada regulators get together to see how they create frictionless commerce. If I can buy a bag of dog food on Amazon and have an Uber driver deliver it within four hours, I should be able to fund my wallet to make a sports bet in a similar manner.

10

Global Gaming Business AUGUST 2018

Said It”

“Brazil is a country with very great potential.

With a good study, we can put 20 to 25 casinos in each region, generating jobs and stimulating the economy.”

—Marx Beltrão, former Brazil tourism minister, who hopes to see the country legalize casino gaming this year

CALENDAR August 14-16: Australasian Gaming Expo, ICC Sydney Darling Harbour, New South Wales, Australia. Produced by the Gaming Technologies Association. For more information, visit austgamingexpo.com.

August 27-28: Women’s Leadership Conference, MGM Grand Las Vegas. Produced by the MGM Resorts Foundation. For more information, visit MGMResortsFoundation.org/WomensLeadershipConference.

September 5-6: Casino Esports Conference 2018, Luxor, Las Vegas. Produced by Fox Marketing. For more information, visit CasinoesportsConf.com.

September 5-7: International Masters of Gaming Law (IMGL) Autumn 2018 Conference, Hotel Boscolo, Prague, Czech Republic. Produced by IMGL. For more information, visit IMGL.org.

September 11-13: SAGSE Latin America, Costa Salguero Convention Center, Buenos Aires, Argentina.

Produced by Monografie. For more information, visit monografie.com/SAGSElatam.

September 17-20: International Association of Gaming Regulators (IAGR) Annual Conference 2018, Hotel Scandic Copenhagen, Copenhagen, Denmark.

Produced by IAGR. For more information, visit IAGR.org.

September 25-26: Central and Eastern European Gaming Conference (CEEGC), Ritz-Carlton Budapest, Hungary. Produced by EEGE Events. For more information, visit ceegc.eu.

October 8-11: Global Gaming Expo (G2E), Sands Expo & Convention Center, Las Vegas, Nevada.

Produced by Reed Exhibitions and the American Gaming Association. For more information, visit GlobalGamingExpo.com.

October 16: European Gaming Congress, Grand Union Hotel Ljubljana, Slovenia. Produced by EEGE Events. For more information, visit EuropeanGamingCongress.com.

October 24-25: ICE Africa, Johannesburg, South Africa. Produced by Clarion Gaming. For more information, visit iceafrica.za.com.

November 5-6: Betting & iGaming Africa Summit 2018 (BiG Africa), Emperors Palace, Johannesburg, South Africa. Produced by Eventus International.

For more information, visit bigafricasummit.com.

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Global Gaming Business AUGUST 2018

Learn how to develop leadership in gaming

n my role as vice president of industry relations at the American Gaming Association, I listen a lot.

Over the past three years when I moved from a communications role on the public affairs team to member engagement in the industry services department, I consistently heard a few key issues where nearly every segment of our industry—commercial operators, tribal operators and suppliers—struggled.

The most frequently mentioned? Finding talented individuals to fill leadership positions.

The fact is, it’s really difficult to recruit and retain top talent—particularly in the gaming industry—in part due to the onerous licensing requirements applied to even non-casino floor jobs (e.g., housekeeping). There also isn’t a ton of incentive to leave a well-paying, hourly wage job on the floor as, say, a dealer, when your vertical options to corporate are limited and to move into a supervisor role often means more responsibility without a big pay bump.

Why change?

Irrespective of how you feel about how the most recent BLS figures were released, the facts don’t lie in that June’s unemployment rate is the lowest it’s been since 1969, which means it’s even more challenging to motivate, incentivize and, frankly, keep good people because they have more choices.

On more than one occasion, I’ve also heard that the industry’s heard enough about millennials; however, as Pew reported earlier this spring, they’re the largest generation in the U.S. workforce and there’s some truth in stereotypes, including that millennials want good jobs where they’re doing good work and enjoying a good life. One of the easiest and most impactful ways to keep employees satisfied and incentivized isn’t to provide free food and free-play slot machines (although that doesn’t hurt), but to provide good leaders, cultures and teams that equally prioritize people with profits and productivity.

This is particularly challenging in an industry where monthly gross gaming revenues or quarterly earnings reports are published for the world to see, making many interpretations of those short-term figures into something that can further exacerbate the national employment challenge, causing good employees to grow concerned over job security, rather than examining the long-term history of casino gaming.

Further, this is not a uniquely millennial problem. Regardless of the generation you fall into, most

By Allie Barth

people leave their jobs due to bad managers. So, why aren’t we investing more in our people?

After testing a few external, expert leadership coaches and presenters at the Global Gaming Expo over the last two years—with great success—I’m thrilled to share that the AGA has launched a new initiative called “Elevate.” AGA Elevate is a first-of-itskind program that will address current industry trends while raising the profile on issues that impact the future of the gaming industry, including human rights, robotics, emotional intelligence and payments solutions.

Our first in-person program will be titled, “Lead—Adapt to Win,” led by Mary Kelly, Ph. D., CSP, CDR, U.S. Navy (retired), who will take her skills and knowledge as former military, current economist and strategic coach to equip gaming industry leaders with an essential skill: adaptive capacity.

Now, what does that exactly mean? As she explains, adaptive capacity will: • Develop and foster commercial casino leaders’ ability to quickly and effectively adapt to a changing environment and bring their teams along while focused on the vision and strategy of the company; • Unleash the human capital people power of your leadership to nurture your employees so they can adapt quickly and create agile working ecosystems; and, • Create, develop and complete a personal leadership action plan, a Five-Minute Vision Plan, a FiveMinute Employee Engagement Plan and a Five-Minute Business Plan that can be shared with the company and used with other employees.

As the industry continues to adapt to address new challenges and take advantage of all opportunities, there could be no better time to launch AGA Elevate and our first program, Lead—Adapt to Win. I’m thrilled to have my team attend, given the change on the horizon for the AGA, and encourage gaming industry professionals to join us August 13 in Las Vegas for the daylong workshop.

Allie Barth is the vice president of industry relations for the American Gaming Association. In her role, Barth leads the AGA’s educational strategy, advances member engagement to provide demonstrable value to the association’s member companies and professionals, and oversees the Global Gaming Expo brand and portfolio of events, G2E Las Vegas and G2E Asia.

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FANTINI’S FINANCE

Atlantic City Action Two new casinos debut in the East Coast gaming capital, but what will it do to that market?

By Frank Fantini

T

his has been a busy and exciting time for the gaming industry.

First, the U.S. Supreme Court opened the door to legal sports betting and states started stepping through.

More recently, Atlantic City, long the source of negative news as casino after casino closed, enjoyed the excitement of two major openings or, more accurately, re-openings.

Thus, the debate has begun as to whether Atlantic City faces more cannibalization or perhaps can grow again after having been right-sized—12 casinos reduced to seven.

With Hard Rock opening in place of Trump Taj Mahal and Ocean Resort in place of Revel, no one really knows what to expect. Hard Rock CEO Jim Allen says his property will grow the market by bringing in a different customer. Some observers expect 20 percent cannibalization.

Deutsche Bank high-yield analyst Andrew Zarnett, who had correctly called the Atlantic City decline for a decade, sees rough days returning.

He thinks the reintroduced hotel capacity can grow the market by 7 percent, but says most of Hard Rock and Ocean’s revenue will come from competitors, and the market will not grow organically.

Using historic data and his assumptions, Zarnett calculates the addition of 3,409 hotel rooms at Ocean and Hard Rock to generate $166 million in revenue next year, assuming 1.5 occupants per room spending an average of $127 each.

Returning customers loyal to the former Trump Taj Mahal and Revel could add $156 million and the properties could take $123 million from competitors, Zarnett says.

Brain McGill of Telsey expects the addition of Hard Rock and Ocean to grow Atlantic City’s revenue by 5-10 percent.

Those kinds of numbers do not bode well for A.C.’s other casinos, and, indeed, McGill says Tropicana, soon to be acquired by Eldorado Re-

sorts, could suffer a 10 percent revenue decline.

Such modest expectations seem to fly in the face of the huge and excited throngs that descended on Hard Rock and Ocean on their opening week.

And a case can be made that the excitement will stick at Hard Rock.

Zarnett says that even if Hard Rock succeeds, the customers are likely to come from other properties.

Allen offers some hope that Hard Rock will do more than that. He notes that 95 percent of revenue at Hard Rock’s Rocksino slots casino near Cleveland was new to the market.

If Allen is right, and if the entertainment-company-not-a-casino-company draws in legions of music lovers, it will benefit the city as a whole, and certainly its neighbors, Resorts and Ocean. After all, a concert that draws 7,000 people to the Etess Arena will fill up more than Hard Rock’s 2,000 hotel rooms.

On the other hand, opening-night headliner Carrie Underwood reportedly performed to a seri-

“

There is no doubt there will be at least some cannibalization. The two public companies with the most at risk are MGM Resorts, whose Borgata comprises about 30 percent of Atlantic City’s market, and Caesars, whose three properties account for around 35 percent.

14

Global Gaming Business AUGUST 2018

”

ous number of empty seats, so even opening-day excitement did not sell out the concert.

So, how Hard Rock and Ocean will fare will be seen, but there is no doubt there will be at least some cannibalization. The two public companies with the most at risk are MGM Resorts, whose Borgata comprises about 30 percent of Atlantic City’s market, and Caesars, whose three properties account for around 35 percent.

Borgata may be especially vulnerable because its trendy young customers are those most likely to be attracted to Hard Rock. And being several miles away from the Boardwalk in the Marina district will limit cross traffic between the two.

Caesars’ Harrah’s Resort in the Marina likewise attracts some younger customers to its Pool nightclub who could be lost to Hard Rock, though the numbers should be small relative to property size.

Caesars Atlantic City and adjacent sister property Bally’s could also be affected by losing customers to the new casinos at the far end of the Boardwalk, which could turn out to be a fatal blow to the struggling Bally’s property.

Whatever the losses, they will be modest given the overall size of MGM Resorts and Caesars corporations. Borgata represented less than 9 percent of MGM’s EBITDA last year; Atlantic City was less than 12 percent of Caesars’ revenues; and Las Vegas and regional market growth should offset some A.C. impact.

The third public company to be affected will be Eldorado Resorts, which is buying Tropicana Entertainment, whose namesake property in Atlantic City generated $391 million in gaming revenue last year.

Eldorado’s executives say they anticipate a hit to revenues and factored that into their purchase decision. Eldorado has a track record of growing profitability while squeezing out efficiencies at the expense of revenues, so it expects the Trop to add to its earnings.

One risk to profitability is a marketing war if casinos return to the bad old days of buying business to protect market share.

However, that risk is lessened by the commitment to profitable marketing all the companies have demonstrated in recent years.

Finally, the sentiment around Atlantic City has changed. A few years ago, the sounds were like a dirge. Now, they are more like a buzz with casino and sports book openings.

In brief, the new competition is something that Caesars and MGM should be able to manage.

Frank Fantini is the editor and publisher of Fantini’s Gaming Report. For a free 30-day trial subscription email subscriptions@fantiniresearch.com.

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AGEMupdate AGEM MEMBER PROFILE

Matsui America Inc. manufactures and sup-

plies casino live table games and equipment to casinos worldwide. Based in Tokyo, Matsui Asia handles Asia and Oceania, Matsui Europe handles East Asia and Africa, and Matsui America handles all of the Americas.

This year Matsui is introducing a new chip mold, the CC.900 series chips, the company’s heavyweight inner-ring style chips that can be installed with RFID tags. The CC.900 is just one of 40 new molds that Matsui is adding to its already-extensive chip line, which comes in a variety of sizes as well as colors. These new chips also have bigger decals, so the design that’s used will stand out. Matsui also has a standard inner ring that can be used for these chips that the customer can choose from. As always, Matsui strives to provide the best service and products to its customers.

“We heard, we listened, and now we were able to come out with this new addition. We know the customers will love it!” says Matsui’s Roxana Orellana.

Please visit the Matsui website at matsuiamericainc.com, where customers can find the latest products, catalogs and also a link to design their own chips that lets you select your mold color and glitter options.

Contact sales@matsui-americainc.com for complete information.

AGEM Board of Directors Actions – July 2018 • Korbi Carrison, event director for Global Gaming Expo, gave an in-person presentation at the AGEM July meeting, providing an update to the forthcoming G2E show as well as sharing information about G2E Asia 2019. Registration opened for G2E on June 6 and is trending well. The show takes place October 9-11. Exhibitor bookings have increased mainly due to the changes in legislation, with more sports betting companies wanting to exhibit. There is a new and improved conference program with keynotes, 228 speakers and 82 sessions already confirmed. The program also will include a new Sports Betting Symposium and Innovation Incubator geared to start-up companies and students.

• Due to demand and a need to expand the show, G2E Asia 2019 will take place on two levels at the Sands Expo, Venetian Macao. Land-based gaming companies will be on the first level, while online, lotteries and game developers will be on the upper levels. Both exhibitor halls will be roughly equal in size.

Space bookings are currently taking place, with more details available in the coming months.

• AGEM recently contributed to the Driving Arkansas Forward initiative that was triggered after the state attorney general approved proposals for consideration on the November ballot regarding changes to state gaming law. There was a requirement to collect 85,000 signatures by July 6 to endorse the proposal that would potentially allow two new casinos to be granted licenses and two existing racinos to allow Class III slots. AGEM’s contribution of $10,000 helped the momentum, with a total of 96,000 names collected.

• Susan Wright, manager of policy and regulation for New South Wales, Australia, recently visited Las Vegas on a fact-finding mission to gain an understanding of how skill-based gaming products are placed and how the industry worked with regulators to implement this. NSW is looking to set up a “regulatory sandpit” to test new skill-based innovations, and AGEM is delighted to work with them to share best practices and experience.

• As part of AGEM’s support of responsible gaming initiatives, members approved an annual contribution of $50,000 to the Problem Gambling Center based in Las Vegas. This support is vitally important for this worthy organization as it receives limited funding from the state, and will go a long way to assist problem gamblers.

• AGEM welcomed one new Bronze member in July. Atlas Gaming, based in Melbourne, Australia, is a manufacturer and provider of slots and gaming products, and holds licenses in Australia, Peru and South Africa. This brings the current AGEM membership to 167 companies from 22 countries.

FORTHCOMING EVENTS Association of Gaming Equipment Manufacturers

June 2018

• The American Gaming Association’s Responsible Gaming Education Week takes place August 6-10.

Positive contributors to the June 2018 AGEM Index AGEM Index declined slightly in June 2018.

Elizabethhe Cronan, AGA senior director of gaming policy, reports that they are working on an updated included the following: The composite index finished the month at 546.37 of 7.69 points or 1.39 tool kit and planpoints, to hosta decline two events. percent, compared to May 2018. The AGEM Konami Corp (TYO: 9766) contributed 8.52 points •Index AGEM is a sponsor of the 12th European Conference ondue Gambling Studies andincrease Policy Issues, reported a year-over-year increase for the 33rd to a 10.37 percent in stockbeing price to consecutive month and at has climbed 124.41 points, or Valletta, ¥5,640. held September 11-14 the Grand Hotel Excelsior, Malta.

Connie Jones, AGEM’s director of 29.49 percent, since June 2017.

Aristocrat Leisure Limited (ASX: ALL) reported a 2.86 responsible gaming, will be attending.

During the latest period, five of the 13 global gaming equipment manufacturers reported month-to-month increases in stock price. Eight manufacturers reported decreases in stock price during the month.

AGEMindex

percent increase in stock price to AU$30.90, contributing 1.47 points.

Selected negative contributors included the following:

The major market indices outperformed AGEM The AGEMstock Index declined slightly in June the 2018.

The composite index finished the month at 546.37 points, With its stock price falling 17.12 percent to $49.15, during the month. The S&P 500 reported a monthaIndex decline of 7.69 points or 1.39 percent, compared 2018. The AGEMCorporation Index reported a year-overGames (SGMS) contributed to-month increase of 0.48 percent to 2,718.37. The Dow to MayScientific negative 11.19 points. year forAverage the 33rddecreased consecutive month andtohas climbed 124.41 points, or 29.49 percent, since June Jonesincrease Industrial 0.59 percent 24,271.41, while NASDAQ increased 0.92 2017.

During the the latest period, five of the 13percent global gaming equipmentGame manufacturers International Technology reported PLC (IGT) month-toreported a during the period to 7,510.30. month increases in stock price. Eight manufacturers reported decreases in stock price during thetomonth.

6.82 percent decrease in stock price $23.24, contributing 4.73 The points.

The major stock market indices outperformed the AGEM Index duringnegative the month.

S&P 500 reported a month-to-month increase of 0.48 percent to 2,718.37. The Dow Jones Industrial Average decreased 0.59 percent to 24,271.41, while the NASDAQ increased 0.92 percent during the period to 7,510.30.

AGEM is an international trade association representing manufacturers of electronic gaming devices, systems, lotteries and components for the gaming industry. The association works to further the interests of gaming equipment manufacturers throughout the world. Through political action, trade show partnerships, information dissemination and good corporate citizenship, the members of AGEM work together to create benefits for every company within the organization. Together, AGEM and its member organizations have assisted regulatory commissions and participated in the legislative process to solve problems and create a positive business environment.

AUGUST 2018 www.ggbmagazine.com

The AGEM Index is published monthly by Association of Gaming Equipment Manufacturers (AGEM) and Applied Analysis | Copyright © 2018

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Atlantic City: ! k c a B e We’r Atlantic City’s two refurbished casinos—the Hard Rock Atlantic City and the Ocean Resort—opened ahead of schedule, and followed up with grand opening ceremonies on June 28

T

he contrast between the openings of the two new Atlantic City casinos, which both debuted on Thursday, June 28, could not have been more stark. Do the openings reflect the expectations from both casinos?

The Hard Rock casino, built on the bones of the shuttered Trump Taj Mahal, held a press conference attended by several hundred members of the media. It was followed by a “guitar-smashing” ceremony—a Hard Rock tradition—that included nearly two dozen participants and Bruce Springsteen’s drummer, Max Weinberg, inside the Etess Arena, the hotel’s main entertainment venue.

And it was just part of an entertainment extravaganza that included choreographed dancers, fire-eaters, acrobats, giant aliens, beautiful showgirls and much more, ending in a balloon and confetti drop. Speakers included half a dozen officials of the Seminole tribe, the Atlantic City mayor, several Hard Rock executives and others.

“We are amazingly excited about the opening of the Hard Rock here in 16

Global Gaming Business AUGUST 2018

By Patrick Roberts and Frank Legato Atlantic City, and not just this building, but truly a bridge to the revitalization of Atlantic City,” said Jim Allen, chairman and CEO of Seminole Hard Rock Entertainment, at the press conference. “Atlantic City is still the second-largest gaming market in the United States, with almost 30 million people within a three-hour drive. We believe this project will create a new renaissance, with the excitement of Atlantic City going back to being one of the great entertainment cities in the United States.

“We have spent over $500 million in renovating this building, and you may recall when we first purchased this building, we promised we would not just paint it and put a guitar on the wall. How do you think we did?

“So many exciting things have happened here on the Atlantic City beach and Boardwalk. When you look at the Jersey shore and how successful it has been the last 10 years, Atlantic City is going to take the next step, and our project, we believe, is going to be the catalyst for that.”

Allen also noted that the Hard Rock launches with zero debt, having been funded internally by the Seminole Tribe of Florida (owner of Hard

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Hard Rock guitar-smash opening

cial properties.

Rock International), and added that its operating company, Seminole Hard Finally, Allen gave a nod to the Ocean Resort, opening the same day two Rock Entertainment, has achieved an investment-grade rating from all the doors away. “I love when there are 1,400 beautiful rooms next door,” he said. major Wall Street investment firms. “In the history of gaming, there is no “We thank the other casinos in town for being so warm and welcoming. This other organization that has achieved an investment-grade rating simultaneis a business opportunity; it’s not just a party. This is about Atlantic City, ously from Moody’s, Standard & Poors and Fitch,” he said. “That’s what we which lost four casinos, with unemployment approaching 20 percent. We’ve represent… This is a financially sound project.” hired almost 4,000 permanent jobs, we created 2,000 construction jobs. The Allen stressed that Seminole Hard Rock, with 75 branded properties ripple effect to all the members of the community is amazing.” around the world, is an entertainment company, not a gaming company, and That included the unions, he said, in reference to the infamous labor batthat will be reflected in the Atlantic City property. “Last year, Hard Rock did tles that culminated in Carl Icahn closing down the Taj Mahal rather than over 35,000 live music events, whether it be Jay-Z and Beyoncé and U2 in dealing with demands for a union contract. “We didn’t see one negative story Hard Rock Stadium, or just someone with a guitar in a Hard Rock Cafe in about Hard Rock and our relationships with the unions,” he said. “We emone of the smaller markets.” brace them, we said we want to work together, and that’s been part of our sucAt the kickoff ceremony culminating in the “guitar smash” tradition, cess.” And the local residents as well—Allen was the first CEO to hold Allen reiterated his faith in the revival of the Atlantic City market. “We believe in Atlantic City, we believe in the state of New Jersey, and we truly believe that Atlantic City’s best days are in front of it,” he said. “People thought it was a little bit crazy when we said we were going to come to Atlantic City six or seven years ago. We looked at opportunities, and formed our partnership with (local investors) Jack Morris and the Jingoli family, and we were able to purchase this legendary building… Our contractors and design teams have been working around the clock.”

He also praised the project owners, the Seminole Tribe, which opened its first gaming property in 1979, —Hard Rock International crediting the tribe with leading the President & CEO Jim Allen way in Native American gaming to

“We believe in Atlantic City, we believe in the state of New Jersey, and we truly believe that Atlantic City’s best days are in front of it.”

the point where tribal casinos earned more revenue last year than commerAUGUST 2018 www.ggbmagazine.com

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“Our logo says ‘We love all, we serve all,’ and we mean that. I want to say thank you to the employees.

We appreciate your service to us.”

—Marcellus Osceola Jr., Chairman, Seminole Tribe of Florida, owner of Hard Rock International

community meetings ahead of a project launch; he held three.

The chairman of the Seminole Tribe, Marcellus Osceola Jr., echoed Allen’s sentiments. “We’re doing this because it’s a business opportunity and a chance for us to expand, but what it means to the city, what it means to New Jersey…

Our logo says ‘We love all, we serve all,’ and we mean that. I want to say thank you to the employees. We appreciate your service to us.”

The guitar-smash ceremony—executives and officials on stage simultaneously smashing guitars, Pete Townshend-style, to launch a new property—was conducted with flair by top officials of the Seminole Tribe and of Hard Rock Entertainment. As per tradition, Hard Rock Employee No. 1, 72-year-old Rita Gilliam, who helped open the original Hard Rock Cafe in London in 1971, served as emcee of the guitar-smashing ritual.

Reveling in Ocean The ribbon-cutting for the Ocean Resort Casino, built as a renovation of the former Revel resort which closed after only two years of operation, was a more lowkey affair. Owner Bruce Deifik was surrounded by friends and executives in the new stairway leading to the resort (which replaced a former wall that discouraged Boardwalk visitation).

One highlight was the appearance of music and film star Mark Wahlberg, who is opening his family’s hamburger stand inside the resort in a month or so.

Deifik showed some raw emotion when introducing friends and family, along with Division of Gaming Enforcement Director Dave Rebuck, who called Deifik a “real man, not a corporation.”

“I’m not sure the Boardwalk has ever been this busy on this side of town, but that’s about to change in a big way,” Deifik said at the ribbon-cutting.

Among the dignitaries helping with the ribbon-cutting was state Senator Chris Brown, who presented Deifik with a commendation on behalf of Governor Phil Murphy. “We have over 3,500 families here in Atlantic County who are back to work, thanks to you and your beautiful family,” he said.

Rebuck, whom Deifik called “an extremely confident, ethical, moral individual,” also expressed appreciation on behalf of New Jersey, and contrasted the past failures of the property with the Deifik family. “We were committed to getting this property open for the summer, and why I know it’s going to be successful in the future is because of the Deifik family,” Rebuck said. “This man has heart.

He’s not a corporate person; he has heart, he has emotion. His entire family is committed to seeing this property successful.”

A quick ribbon-cutting and the property was open.

Both casinos had been cleared to begin operations by the New Jersey Division of Gaming Enforcement the day before their scheduled openings after conducting “soft-play” tests earlier in the week, and both moved quickly to open their doors.

Rebuck said Hard Rock was cleared for full operations as of 3 p.m. and 18

Global Gaming Business AUGUST 2018

Ocean Resort as of 5:45 p.m. June 27. Both properties then opened their doors to gamblers the following day.

“I am holding the certificate in my hand, and I couldn’t be happier,” Deifik told the Associated Press. “We are open for business and everyone is welcome right now,” added Frank Leone, the casino’s CEO. The Hard Rock also debuted ahead of schedule.

“People are already coming through the doors,” Todd Moyer, Hard Rock’s senior vice president of marketing, said a day before the opening. “Our official grand opening is tomorrow and we are still working toward it, but the heavy lifting has been done. I liken it to Extreme Makeover: Home Edition on cable, where the things they get done in the last few hours are amazing.”

Moyer’s executive role at the Hard Rock is something of a homecoming. He began his casino career in the same space, as director of marketing for the Taj Mahal, and headed marketing for Trump Marina before stints as GM in casinos in Pittsburgh and Iowa. He joined Hard Rock five years ago as GM of the company’s Sioux City, Iowa property.

Jobs, Jobs, Jobs The two casinos have invigorated Atlantic City’s job market, returning almost 7,000 of the 11,000 jobs that were lost when five casinos in the resort shut down starting in 2014. Both of the new casinos, however, are refurbishments and renovations of casinos that closed during those shutdowns.

The Hard Rock casino is the former Trump Taj Mahal casino, opened by now-President Donald Trump in 1990. The casino faced several bankruptcies in its history, but in a 2014 bankruptcy the property teetered on closing until it was bought by billionaire Icahn.

Icahn, however, despite pumping cash into the property, could not keep it open and became involved in a bitter labor dispute with the city’s main casino union. He closed the Taj in 2016—saying he had lost $100 million trying to run the property—and then sold it to Hard Rock for $50 million in 2017.

Hard Rock has since spent about $500 million to refurbish the property and totally remove any signs of the casino’s former Indian theme.

The Ocean Resort is the former Revel, one of the most spectacular casino flops in Atlantic City’s history. The $2.6 billion Revel opened in 2012 after a long battle to secure financing.

From the start, the casino was seen as making strategic marketing mistakes for the resort by focusing almost exclusively on high rollers and presenting itself as a high-end destination resort, but still not rewarding players at the same level that other properties did. Revel was also criticized for having a confusing layout and not being player-friendly. The facility never turned a profit, and was also burdened by massive debt.

The casino filed for bankruptcy in 2013 and was eventually closed in 2014.

The property was bought out of bankruptcy by Florida developer Glenn Straub

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Mark Wahlberg (far right) participated in the ribbon cutting at the new Ocean Resort

for $82 million. Straub then embarked on an eccentric and often convoluted effort to reopen the property, which included a fight over ownership of the facility’s heating and water plant as well as several lawsuits against the New Jersey Casino Control Commission over casino licensing for the property.

Despite announcing several opening dates for the property, Straub was never able to reopen it, and sold it in January to a Colorado-based development group led by Deifik. Deifik has said the group has spent about $200 million on the property and addressed many of the complaints against the former Revel. However, some of the major flaws, such as the inability to reach the casino floor via the hotel elevator, remained issues.

Ocean CEO Leone, who has 30 years experience in the Atlantic City casino market, told GGB that despite its prior problems, the physical facility at Ocean is “absolutely spectacular.”

“It cost $2.6 billion to build, and when you walk the property, you realize they spent every bit of that $2.6 billion,” said Leone. He said that after addressing infrastructure issues with the property, the new ownership group went directly to its former customers to see where improvements were needed. The group used focus groups, interviews and surveys to formulate a plan to reposition the property for its launch as Ocean.

One “fatal mistake” of the previous owners, he said, was to focus exclusively on non-gaming amenities to the exclusion of the core gambler. “We want to ensure we speak loudly and clearly to all audiences—resort/leisure, group and convention, nightlife—but most importantly here is that core casino customer.” He said the former marketing plan failed to speak to “the customers that provide 70 percent of the revenue.”

New Saturation?

Many analysts fear that the reopening of two major casinos could dilute the city’s casino market again and lead to more casino closures. Though casino revenue is down in the city through the first five months of 2018, the city’s market has been able to thrive with just seven casinos, and most have turned a profit.

The key to whether the openings will revitalize the city will probably revolve around both properties’ ability to draw in new customers with other amenities besides casino gaming.

Towards that end, the Hard Rock is banking heavily on entertainment, and has announced an ambitious schedule to offer live music for 365 consecutive days. The casino held a concert by Carrie Underwood for its grand opening at its 7,000-seat Etess Arena—it did not sell out—but the schedule also includes smaller concerts at five different venues within the property. Rapper Pitbull also performed on the casino’s opening weekend.

Hard Rock is also opening a nightclub and comedy club—the first hosted by comedian Howie Mandel—and about 20 restaurants, including reviving the Taj’s Robert’s Steakhouse, a longtime favorite in the resort (and named after Donald Trump’s brother), and Il Mulino, a legendary New York restaurant that had a presence at the Taj. An unwanted presence was the reopening of the Scores strip club, which had an agreement with the former owners that requires the new owners to lease the same space to them. Hard Rock went through several legal exercises to break the contract, but was unsuccessful.

Just don’t try to find any directional signs to Scores inside of Hard Rock.

The casino also plans to offer online gambling in the state. Hard Rock, however, has not opened with a sports book, but casino officials have said they are se20

Global Gaming Business AUGUST 2018

riously studying the issue. The Hard Rock features 2,000 hotel rooms, 2,100 slots and 120 table games.

Ocean Resort has also made a major commitment to entertainment and dining, also returning several restaurants which managed to thrive at the Revel despite the casino’s problems. The property is also launching new offerings such as a Wahlburgers and the unique Cereal Town that will offer cereal 24/7.

Also returning is Royal Jelly, a rock ‘n’ roll burlesque club, and the successful HQ Nightclub. Deifik has told regulators that he has renegotiated contracts with most of the property’s returning entertainment venues to better benefit the overall property.

The property has also opened with a sports book, through a partnership with William Hill US, though the casino has opened with a temporary sports book in place as it works to complete its main sports betting lounge.

Leone said the new facility will be in the center of the casino, with good sight lines to banks of flat-screen video monitors, creating a “highly engaging, high-energy environment.”

The casino also plans to open a live poker room, and has partnered with GAN, which runs Belfair online casino gaming for Golden Nugget Atlantic City, to offer online gaming.

The hotel features 1,399 rooms, a 138,000-square-foot-casino, six swimming pools and a luxury golf franchise.

The two openings came on a big weekend in the resort, due to both the July 4 holiday and a scheduled public beach concert by country artist Sam Hunt. City police estimated that nearly 1 million people visited the resort over the weekend.

Also, the Showboat, the former casino between Ocean Resort and Hard Rock that has been operating as a non-gambling hotel since July 2016, opened all 1,331 of its hotel rooms starting June 28. It had been operating with just 852 available rooms.

While the hotel does not offer casino gaming, officials said they are embracing the reopenings and adding several attractions of their own including new restaurants, a fitness center, an indoor arcade and an expansion of its indoor laser miniature golf course.

Atlantic City Mayor Frank Gilliam was a prominent speaker at both property launches. “This is truly a monumental moment for Atlantic City,” he said at the Ocean ribbon cutting. “Not only are we opening one, but we are opening two casinos in one day, ushering in a new era for Atlantic City.

We have partners committed to the community.”

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AGA: The Future is Now Departure of Geoff Freeman causes reflection on the direction of the American Gaming Association

By Roger Gros

R

eplacing a legend is never easy, but that’s exactly what Geoff Freeman had to do when he took over as president and CEO of the American Gaming Association five years ago. Frank Fahrenkopf, a former chairman of the Republican Party, was the founding president of the organization and served for 17 years.

Fahrenkopf was well-known in Washington, D.C., and led a defensive strategy as AGA head. He successfully led an effort to de-fang the National Gambling Impact Study Commission in the late 1990s, which was formed to dig up dirt on the industry. Fahrenkopf helped to get several pro-gaming commissioners appointed, so the final report actually told the truth about the industry.

He recognized the dangers of a “tobacco-style” inquisition in Congress, so he directed the formation of the National Center for Responsible Gaming, which pursued research into the then-little-known field of problem gambling in a balanced and independent manner.

But under Fahrenkopf, the AGA was a stagnant, inward-looking organization playing defense. Freeman had other ideas.

Expansion Plans Freeman laid the groundwork for expansion of the AGA immediately upon taking over. His appointment was anointed by MGM President and CEO Jim Murren, who was also the chairman of the AGA at that time, and Freeman put his plan into place with Murren’s blessing.

The AGA was formed and was still controlled by six Las Vegas-centric companies, which included the biggest operators and manufacturers in the 22

Global Gaming Business AUGUST 2018

business. A seat on the AGA board was coveted; it was a small club. Freeman wanted to expand the membership of both the AGA and the board.

“The suppliers who were members believed that the AGA only wanted their dues money,” says Freeman. “The organization didn’t represent regional casino operations and didn’t represent tribes. We’ve changed that, and we’ve built an organization that I think effectively represents the totality of the industry.

“You can’t say you represent the industry, if you don’t represent the industry. You need to have people around the table.”

To get those people, Freeman was tasked with expanding the association, even though it might diminish the power of the original members and founders. Murren became chairman of the AGA at the same time Freeman was appointed.

“We felt strongly we needed to evolve the AGA into a more inclusive, contemporary and forward-looking organization,” says Murren. “We had an opportunity to take a fresh look at the leadership of the AGA, so we looked for a leader who had enthusiasm, intellect, collaborative skills with energy and experience in other similar industry that had a more contemporary view of government affairs.”

Tim Wilmott, the president and CEO of Penn National Gaming, is now the AGA chairman, and believes expanding the membership made sense.

“As a board member and now as chairman, I was very involved in all the strategic decisions we made at the AGA as members,” he says. “Clearly, we’ve become a much more inclusive organization. We made the decision to include tribal membership as part of the association. Geoff provided the struc-

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“We know the value of our industry. We know the economic, social and political importance of our industry.”

—MGM President and CEO Jim Murren, former chairman of the AGA

ture and the understanding about how a trade association should work.”

Tribal membership was a little more controversial, since for the first 17 years of the AGA, tribes had been excluded. But because tribal gaming and commercial gaming have common issues and interests, most believe it makes sense.

“I believed that there should be ways for the commercial gaming industry and the Native American industry to work together,” explains Murren. “There will always be areas of competition, as there are very passionately today, but I was the first advocate to bring in Native American tribes. Yes, that’s a bit ironic given my position with MGM, but I felt that was important and so did Geoff.”

Wilmott expects the tribal drive to continue.

“I think we’re a stronger organization having tribal membership from California or Florida or Oklahoma or Connecticut,” he says. “These are significant businesses in our industry, and their input is important to the direction the AGA is going.”

Jana McKeag, a former member of the National Indian Gaming Commission and now the president of Lowry Strategies and a tribal consultant, says there are still differences.

“The tribes have some issues that coincide with those of AGA but not all,” she says. “The AGA has to be careful to make sure those differences are respected.”

McKeag says the National Indian Gaming Association was initially upset about the AGA’s outreach to the large gaming tribes.

“I’ve been impressed by NIGA and how they’ve navigated the fact of some of their larger members also joining the AGA,” she says. “But I have concerns that the large tribes might leave NIGA, and it would then become an organization of the smaller tribes. But this is all to be determined by whoever becomes the new leader at the AGA.” Jan Jones Blackhurst, executive vice president of public policy for Caesars Entertainment, member of the Gaming Hall of Fame and longtime AGA board member, agreed with the decision to bring tribal members into the organization.

“Bringing the tribes in made sense because we have similar issues and a common focus,” she says. “But remember, how do you build consensus when you have such a broad membership?”

Freeman remembers Gary Loveman, the former chairman of Caesars, giving him a similar warning.

“I remember early on, Gary Loveman saying to me that if we can’t get six people to agree, how are we going to get 36 people to agree? And I think one of the great ironies in association management is that when people feel that they have a seat at the table, when they feel that their voice is heard, when they feel that they’re isn’t somebody else, on the inside or outside, trying to screw them, their ability to find consensus is greater.”

Adding the tribes has been tremendously productive, says Freeman.

“When I speak to the average person on Capitol Hill, they don’t delineate between tribal casinos and commercial casinos,” he says. “It’s all casinos to them. So, the first thing you have to accept is, if you want to keep out $30 billion, you have to swim upstream in trying to get people to understand why your industry is different than that industry. I believe we have more in common than we do that divides us. Don’t get me wrong; we have things that divide commercial gaming and tribal gaming. We have things that divide commercial gaming and commercial gaming. But what we can accomplish when working together, is worth working together.

“We have two members—for the first time ever—of tribal gaming, Seminole Hard Rock and the Chickasaw Nation, on the executive committee of the AGA—not just on the board, but on the executive committee, which has been tremendously productive because of their participation. So, I think the comfort level is only becoming greater, and the opportunities are only becoming greater in terms of what we can accomplish when we’re working together.”

Sports Betting Victory Maybe the hallmark of the Freeman era was the campaign to overturn the Professional and Amateur Sports Protection Act (PASPA). The AGA partnered with many different organizations—law enforcement, leagues, other associations and more—to educate the public about the failure of PASPA and the consequences of leaving it in place.

Wilmott says the goal was to educate the public—and the media—to get

Freeman’s AGA launched the “Get to Know Gaming” campaign, which researched the economic and social impact of gaming on various states, followed by a highly publicized press conference featuring the AGA and local politicians and regulators. And it worked.

AUGUST 2018 www.ggbmagazine.com

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“They shouldn’t be trying to negotiate somepublic opinion on the AGA’s side. thing they don’t have a consensus on. We’re “We knew the facts were on our side, so we happy to have conversations with states about just brought in the right resources to counter these “I think we’re a access to data, but we’re not interested in having arguments and the outcome reflected those facts,” stronger organization any kind of legislated ‘partnerships’ with the he says. leagues in U.S. sports betting. We’re just not.”

Murren says the sports betting campaign went having tribal Murren understands that each state will apto the core of the AGA’s mission. membership from proach sports betting differently.

“The greatest opponent I’ve ever faced in the California or Florida “Individual members of the AGA will gaming industry is the lack of information or misor Oklahoma or likely have different opinions on how the AGA information,” he says. “The AGA very clearly, very Connecticut. These should approach the individual states,” he says. objectively, very calmly provides fact-based infor“With every state approaching sports betting are significant mation so we can find out if there is common slightly differently, it’s going to be important for ground on any issue.” businesses in our the AGA to provide information and common But the more the arguments were laid out, the industry, and their thoughts, but it’s probably less advisable to take more sophisticated was the message. input is important to any particular stance one way or another.”

“We started working on the issue in 2014, and the direction the Wilmott says the campaign of education we certainly became smarter over time,” says AGA is going.” should continue, but with an understanding Freeman. “We did refine our message, and the one about the differences between states. thing that everybody could agree on, and nobody — Tim Wilmott, President and CEO “(AGA vice president) Sara Slane is leading could argue with, is that we have a huge illegal of Penn National Gaming and that effort, and she’s been very plugged in with market that’s not doing anybody any good. And current AGA chairman all the states,” he says. “So even with Geoff’s denow, as leagues go out there and push things that parture, and we’re discussing state by state, add undue cost to a legal market, we’re able to talk we’re not going to miss a beat.” about what effect that has, and how that drives the “Honestly,” says Blackhurst, “most of the members don’t want them in consumer into the illegal market. So, I think that the ability to talk about the states. They have state organizations that are more plugged into the isan illegal market, the size of the illegal market, was a winning message.” sues and the players. They have the best of intentions but they may do more Caesars’ Blackhurst says it was a good message but questions its effecharm than good.” tiveness.

And when it comes to tribal gaming, where complications like compacts “The AGA had a good argument for sports betting, but they had and other state activities are considered, McKeag believes there is no place nothing to do with the decision,” she says. “I’ll give credit to Chris for the AGA. Christie and Ray Lesniak on that, and all the lobbying on the part of the “The AGA will have a hard time addressing tribal issues as they pertain AGA wasn’t going to influence the Supreme Court.” to sports betting,” she says. “This is going to be a challenge because legal Dave Rebuck, the director of New Jersey’s Division of Gaming Ensports betting will affect each tribe differently.” forcement and an individual directly involved in the Supreme Court suit, was more circumspect.

“As a lawyer, I know a marketing campaign can’t influence a Supreme Perception Drives Policy Court justice,” he says. “But they did a great job of educating a public who One area that began under Fahrenkopf and was greatly expanded under knew nothing about how sports betting was conducted, the economics of Freeman was a focus on gaming’s impact on the communities where it operthe business, nor the depth of the illegal market. So I believe that spreadates. Freeman’s AGA launched the “Get to Know Gaming” campaign, ing those facts educated lots of people, and who knows, maybe a Supreme which researched the economic and social impact of gaming on various Court justice or two.” states, followed by a highly publicized press conference featuring the AGA But now that sports betting is permitted in the U.S. and states are con- and local politicians and regulators. And it worked. sidering legalization, what should the AGA role be? Opinions vary.

“Policy doesn’t happen by accident,” says Freeman. “It happens because “We’re not going to be all aligned on sports betting,” says Blackhurst. there’s a point of view about our industry. We need to create an informed 24

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“The tribes have some issues that coincide with those of AGA, but not all. The AGA has to be careful to make sure those differences are respected.”

—Jana McKeag, former National Indian Gaming Commission member and tribal consultant

point of view, and nothing can help us do that more than research. Nothing can help us do that more than telling the story of this industry. Gaming is not a white-hat industry, but we always found a way to tell a good story. And the stories we tell are actually true. And I’m joking when I say that, but the stories we have in this industry are good stories.”

Blackhurst says this should continue to be a priority of the AGA. “The AGA’s primary goal should be to keep the federal government out of our business and to communicate the multiple benefits that the industry brings to the economy of the state in which you do business,” she says. “Those are two very good things. But getting involved in regulatory conversations or on issues where we’re all not aligned is going in a different direction.”

AGA of the Future Wilmott says the departure of Freeman is a bump in the road, but because the AGA members approved the “Strategic Plan 2020” in 2017—a roadmap to the future—the course is set.

“No one’s happy that Geoff’s leaving at the time he is, but the AGA is in very good shape,” Wilmott says. “Membership is strong, the financial situation of the organization is very healthy. We have a plan in place going forward.”

Murren says the plan is comprehensive and was signed off by all the members.

“The issues we identified were more community engagement, more congressional engagement, tackling issues like diversity, promoting and improving the workforce through training and education, collaboration with other industries, addressing sports interaction with our entire industry—not just betting but the entire spectrum of how we interact with sports—looking at trade and tourism issues, and getting a clear understanding how important gaming is under the umbrella of tourism,” he says.

Murren says it’s a continuation of the diversification of membership and outreach to partner organizations.

“We know the value of our industry,” he explains. “We know the economic, social and political importance of our industry. Many non-members at the time felt the same way but felt they weren’t being invited into the discussion. I knew

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there would be a high degree of receptivity but I was very happy with deliberative and very focused efforts by Geoff and his team.”

Blackhurst feels that the AGA has lost some influence on Capitol Hill that it had when Fahrenkopf was in charge.

“They should look at building their federal strengths. I don’t think anyone at the AGA today has a particularly strong voice on the Hill,” she says. “I think we need an AGA leader with more visibility on the Hill. We just had someone in place for five years who was charged with

“They shouldn’t be trying to negotiate something they don’t have a consensus on.

We’re happy to have conversations with states about access to data, but we’re not interested in having any kind of legislated ‘partnerships’ with the leagues in U.S. sports betting.”

—Jan Jones Blackhurst, Executive Vice President of Public Policy, Caesars Entertainment

building up the organization, and we’ll see if that’s going to work, but in my opinion, we need someone with the respect and stature in political circles.”

Wilmott and Murren are both on the sixmember search committee to find a replacement for Freeman.

Murren says he’s encouraged that the gaming industry in general is now able to attract people from outside the industry because of the higher visibility it has and its perception now as a form or entertainment, not just solely gaming.

“At MGM, we’ve attracted interest from people who would have never been interested in the gaming industry previously,” he

THANKS FOR VALIDATING THE GAMING INDUSTRY WITH YOUR LEADERSHIP

Geoff Freeman, the gaming industry in America wouldn’t be what it is today without your many contributions. JCM Global wishes you the best in all of your future endeavors.

26

Global Gaming Business AUGUST 2018

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says. “And now they’re not only interested, but they’re enthusiastic. And I’m sure that will come to play here in the search.”

While the path forward is clear with the strategic plan, Wilmott is open to hearing what a new leader would have to say.

“Anytime you bring someone new in, they’re going to want to put their stamp on an organization,” he says. “And we’re open to considering things that could be additive to that plan. We’ll be open-minded and we’re willing let the new CEO put his or her imprint on the direction.”

Most people understand that the AGA under Fahrenkopf was very different than the organization led by Freeman.

“For me and for many of the members—but not all—there was a feeling that with the AGA, born out of necessity at a time when the federal government was attacking us unfairly, Frank Fahrenkopf and the founders of the AGA were incredibly effective by being very focused on protecting the commercial gaming industry, which was literally under attack from every direction,” he says.

When that pressure was off, the AGA needed to become a more typi-

Thank You

Geoff Freeman For Being As OBSESSED with the Game As AGS You were paramount in the overturning of PASPA but your crowning achievement was unifying and growing our industry, expanding the AGA’s membership by 200% during your tenure.

Forever grateful for your passion, vision and perseverance, Your friends at AGS

cal trade association.

“That was a philosophical change that not everyone immediately embraced,” but it moved forward with broad consensus.

Murren understands that the board won’t agree on every issue. Even today, there’s not an AGA consensus about online gaming. But Murren believes the AGA can survive and thrive with some differences.

“I would be disappointed if there were not division within the board because that would mean we’re not thinking independently or creatively,” he explains. “We’ve come to multiple conclusions and decisions at the board level, but if we can gain general consensus, that is more powerful than being inert.”

Freeman moves on to new challenges as president and CEO of the Grocery Manufacturers Association, a group that makes the AGA look like a love fest. But he’s excited about the future both for himself and the AGA. When asked about his legacy at AGA, he demurs.

“I don’t think you really have a legacy after only five years,” he says. “But there are things that stick with me. I’m proud of the unity, I’m proud of the consensus, I’m extraordinarily proud of the team that we’ve built here.”

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Show Us Your Heels

T

GGW’s annual fundraiser a hallmark event of G2E week

he annual Kick Up Your Heels fundraiser has become a treasured hallmark event on the annual gaming industry calendar.

Now produced by Global Gaming Women, the event raises money to support the Global Gaming Women organization as well as its Charitable Education Fund, which provides women throughout the gaming industry with educational scholarships.

To date, hundreds of women have benefitted from scholarships awarded from the fund to attend a wide range of educational programs, geared toward furthering recipients’ career paths.

This year marks the event’s ninth anniversary, and will take place on Wednesday, October 10 from 6 p.m to 8 p.m. Tickets will be available at GlobalGamingWomen.org, and sponsorships are also available.

Gaming industry legend Patricia Becker started the event nearly 10 years ago. Becker, who has held numerous high-profile titles in gaming, has often also been in the position of trailblazer, going where women had not yet been in the industry, including serving as the first woman on the Nevada Gaming Control Board. “I found it rather lonely as a female executive in gaming,” she says, “and I wanted to create an event where women around the industry could get together, network, and meet other women, while also raising money for education scholarships so that women could advance their careers.”

That idea grew into the first Kick Up Your Heels event. “I called up all the women I knew in gaming and invited them to this new event, and the price of admission was the price of the last pair of shoes you bought,” says Becker. The admission fee was intentionally flexible so that women at all strata of the industry could attend. Because it was a fun event based on the price of a pair of shoes, the name Kick Up Your Heels fit, well, like a great pair of shoes.

“My parents owned a small shoe store in Las Vegas years ago, and it was the only place in town where people could go to buy kids’ shoes, so the idea of a shoe-based theme was near and dear to my heart as we created this event,” Becker says.

No sooner had the curtain gone up on the first fundraiser than both attendees and organizers realized there was a need and a demand for an organization to help serve gaming women’s needs. Soon the AGA was forming a steering committee and Global Gaming Women was born.

Today, the Kick Up Your Heels fundraiser is a major event on the calendar, drawing hundreds of attendees and big-name sponsors. At its core, it remains a fun, nurturing place for women to network, see old friends, and make new ones, laying a groundwork for women to move forward and advance their personal and professional careers.

For the past two years, Kick Up Your Heels has also been a place to honor the “Patricia Becker Pay It Forward Award Recipients,” a group of women selected by the GGW Board for their dedication and service to the organization and to women in gaming.

This year’s honorees are:

28

Global Gaming Business AUGUST 2018

By Patrick Roberts

• Ann Hoff, President and COO, Excalibur, Las Vegas:

Hoff has been on the board of GGW since it became a separate charitable organization in 2015 and a member of the Executive Committee the past two years. She has chaired the nominating committee in 2017 and 2018, drafting guidelines for nominees to the GGW Board. Additionally, she has generously given her time to act as a dine-around host for the W Development Class.

• Erica Kosemund, Senior Director of Marketing, Choctaw Nation, Durant, Oklahoma: Kosemund has been

a member of the Events Committee, the G2E 2017 planning committee, and chairwoman of the 2018 NIGA GGW Program. In addition, she has been an active participant on KUYH committee and is a 2016 graduate of the W Development Class.

• Lauralyn McCarthy, Vice President, New Markets, Aristocrat Technologies, Inc., Las Vegas: McCarthy

hosted the W Development Class at her home for dinner in 2016 and 2017, and will do so again in 2018. She co-chairs the Education Committee and worked diligently to develop the Business of Business class. McCarthy has hosted dinearounds for the Western Leadership Classes, and joined the GGW board in 2017. Additionally, she is a co-chair of the Great Women of Gaming Committee and co-chaired the Power of the Purse event.

• Meaghan Ryan, Vice President of Talent and Team Member Relations, Seminole Hard Rock, Hollywood, Florida: Ryan is a 2015 graduate of the W

Development class. She was a member of the Southern Regional Educational Committee in 2016 and 2017 and took a leadership role on that committee. In 2018, she became a co-chair for the Education Committee, where she directs the Southern and Eastern regional committees.

Each honoree receives a bracelet made of quartz stones, symbolizing power, energy and clarity. A 14-karat stiletto shoe charm characterizes the recipient’s commitment and strength in leading the way.

Many of GGW’s programs focus on mentorship, and Becker expands on that idea. “At GGW, mentoring combines with networking and education to give women additional skills and visibility. Women need to have advocates as much as mentors, so that as promotions and opportunities become available, you have someone in the room to say your name, someone who will say, ‘She’s ready to be considered for training or a promotion or for the next level.’ At GGW, we are giving women forums in a supportive and non-threatening environment, so they can move forward.”

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Virtual Indian

Country

Sports betting moves regulatory debate to online, mobile

By Dave Palermo

M

uch of the American Indian casino industry is at least temporarily opting out of sports betting, discouraged at the anticipated low profit margins and rebuffed by federal and state regulatory and legislative hurdles required to take wagers on college and professional sports.

But the debate surrounding sports betting is accelerating efforts to advance tribal government casinos from traditional gambling to internet and mobile technology, a transition believed necessary to generate interest from a younger generation of customers.

“This certainly ramps up the conversation of what comes next in the evolution of gaming in Indian Country,” says Billy David, an Oregon Klamath and spokesman for the Tribal Alliance, a consortium of some 40 tribal regulatory commissions.

“This is a defining time for tribal gaming. How do we properly move forward?”

Not more than a few of 240 tribes operating government casinos in 29 states are expressing interest in operating sports books, a costly, risky endeavor that generates a marginal profit.

“No, not at this point in time,” says Debbie Thundercloud, chief of staff for the National Indian Gaming Association (NIGA), the industry trade and lobby group.

Sports wagering’s impact on Indian gambling nationwide, which saw a 3.9 percent growth in 2017 to $32.4 billion, will be minimal, she says.

“I don’t believe it will have a significant impact, economically, on tribal gaming,” says Thundercloud, a Wisconsin Oneida. “The margins are so small.”

“The reality is there’s not a lot of money in sports betting, from the operator’s perspective,” agrees a tribal gambling industry official who requested anonymity. “It’s just not there.”

National Campaign A nationwide initiative to repeal the Professional and Amateur Sports Protection Act (PASPA) by the American Gaming Association (AGA)—a lobby and trade group largely for commercial casinos—generated moderate support from tribes operating 500 casinos in 29 states.

Tribes saw a need to partner with AGA, despite being aware the legal and regulatory constraints of federal law and tribal-state regulatory agree30

Global Gaming Business AUGUST 2018

“The big thing is getting technology put in place and getting people trained in the technology.”

— Jamie Hummingbird, Director, Cherokee Nation Gaming Commission ments would make it difficult for tribes to embrace sports betting as an expansion of tribal casinos.

“We saw a need to engage in this emerging industry,” Stevens told the group’s annual conference. “There is no one size fits all and policymakers need to hear from the Indian gaming industry.

“The unlawful (sports betting) market continues to thrive, 20 states are considering sports betting bills and the train is moving quickly,” Stevens said.

But the economics of sports betting and the regulatory and legal obstacles for the tribes have, indeed, been problematic.

“I’m not faulting AGA on picking up on sports betting. It’s a big issue,” says an industry official who requested anonymity.

“But this has been their issue,” the official says of AGA and commercial casinos. “The reality is it doesn’t have much effect on the tribes.”

Sports betting legislation has been introduced in 19 states, most with commercial casinos. The bills have found most success in states with few or no Indian tribes.

But the momentum created by the movement to legalize sports betting—accelerated by the May U.S. Supreme Court decision declaring PASPA to be unconstitutional—is pressuring tribal leaders, regulators and casino operators to make preparations for online and mobile wagering.

“The sports betting debate is definitely triggering more discussion about the internet,” Thundercloud says.

“You have to concede that’s a transition that is going to happen, eventually,” agrees Chris Stearns, a Navajo and chairman of the Washington State Gaming Commission. “It’s the wave of the future.”

The Tribal Alliance has drafted minimal internal operating controls (MICs) and technical standards—largely focused on skill-based gaming—

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2 0 0 0 AT T O R N E Y S | 3 8 L O C AT I O N S W O R L D W I D E˚

A Multidisciplinary Team to assist tribes in making the eventual transition from traditional gambling to mobile and internet play.

That transition will likely include wagering on sports and other games on—and eventually off—the casino property.

Indians Online Seven categories of iGaming the alliance is working on, suggested by NIGA leadership, include social and real-money platforms and sports wagering. A dozen tribes already operate social gambling websites. A few tribes operate real-money sites as commercial ventures.

“That’s how the birth of the Tribal Alliance came about,” David says.

“We’ve got to be prepared to regulate. If we, as regulators, aren’t ready, we’re going to be stifling the industry’s growth.

“We’re relying on experts in the tribal realm to come forward and provide their expertise,” David says, particularly in the case of smaller, rural tribal casinos on impoverished reservations lacking the resources and technology to cope with the onset of iGaming.

The National Tribal Gaming Commissioners/Regulators (NTGCR), a larger coalition of tribal gambling regulators, is also exploring the impact sports and internet wagering will have on the indigenous casino industry.

“This is going to force all of us—NIGA, NCTCR, our tribal leadership—to put together some positions and talk about what this means to tribes,” says Jamie Hummingbird, NCTCR chairman and director of the Cherokee Nation Gaming Commission. “We’re still in that regrouping phase. We’re still trying to figure out how this is all going to work.”

“We’re not talking simply about sports betting, we’re talking about internet gaming,” says Joe Valandra, a Rosebud Sioux and former chief of staff for the National Indian Gaming Commission (NIGC). “We’re talking about mobile gaming, which is vital for any big-time success of sports betting.

“If you can’t do mobile even inside your property, you’re really limiting any opportunity to make money. I’m not sure everybody sees it that way, or they don’t want to talk about it.”

Meanwhile, state and tribal governments are wrestling with the legal and regulatory minefield as states move to enact legislation to legalize betting on college and professional sports.

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“Tribes that are serious about it are going to hire experts in doing sports betting, and that could be experts from anywhere from Las Vegas to Europe. They’re going to bring in people with experience.

They’re not going to do it themselves.”

—Norm DesRosiers, former member, National Indian Gaming Commission

with tribal government gambling can be complicated.

Tribes operate casinos under the Indian Gaming Regulatory Act (IGRA), which limits types of games tribes can operate on Indian lands.

Permissible games are defined by tribal-state regulatory agreements, or compacts, required under IGRA. Compact terms vary dramatically from one state to another.

Compacts in many states provide tribes with casino exclusivity in exchange for giving the state a share of gambling revenues. To operate sports books, tribes and states need to negotiate amendments to the compacts, an often politically problematic process.

States seeking to extend sports betting to lotteries and commercial vendors risk violating exclusivity provisions in the tribal-state compacts and losing their share of tribal casino revenues.

And states seeking tax revenues from sports gambling are confronted with federal law that generally prohibits taxation of tribal government gambling revenues.

Adding to the confusion is the fact IGRA limits gambling to Indian trust lands. There remains legal uncertainty over the ability of tribes to accept wagers from outside reservation boundaries. Sports betting bills in several states include mobile and internet provisions.

The Wire Act and Unlawful Internet Gaming Enforcement Act (UIGEA) prohibit the transmission of wagers across state lines. But tribes are exempt from UIGEA. If compacted sports betting is declared legal on tribal reservations in several states, they can share markets.

Many tribes are contemplating operating sports betting as a commercial venture, taxed and regulated by the states, rather than gambling under IGRA and federal Indian law.

Sports betting bills in New York, Louisiana, Michigan, Oklahoma, Connecticut and elsewhere were blocked at the 11th hour over the legal complexities involved with tribal gambling.

Some trade industry writers blame tribes for the inability to get legislation through state houses. But in most cases it was the fault of legislators uninformed about IGRA and federal Indian law.

“It’s the ignorance of those who sit in state legislatures,” Thundercloud says. “They just don’t understand the compacts they’ve entered into with tribes and the terms and conditions of those compacts.”

“Legislators don’t talk to tribes until the very end,” Valandra says.

“Tribes do have leverage because in many of the states tribes are making payments pursuant to the compacts. When states realize what they have to lose, things get put on hold.

“If the drafters of legislation were aware of the need to comply with 32

Global Gaming Business AUGUST 2018

federal law… things might go smoother. That’s how it works. Tribal governments, as well as state governments, have an interest to protect.”

Sports betting bills are expected to be successful in New York and Connecticut, where the Mashantucket Pequot and Mohegan tribes dominate the casino market. Both tribes also operate online gambling.

Tribes in Arizona and Oklahoma are expected to include sports betting in negotiating compacts soon to expire, although only a few of the tribes are expected to operate distinct books. Tribes are expected to demand casino exclusivity provisions over sports wagering.

Tribes in California, the Midwest and the Great Plains are pushing back on sports betting because of political, economic, legal and regulatory issues, including favorable compact terms they don’t wish to renegotiate.

But public demand for sport wagering—promoted by betting operations such as DraftKings and FanDuel—may pressure state and tribal governments to push for online and mobile gambling.

Jake Williams, general counsel for the U.S. branch of Sportradar, a European sports data and integrity company, told the Eagle-Tribune it’s important for states and companies to understand what consumers want.

“Everything in general, not just in sports betting but all sports industries, is shifting toward that real-time, instant gratification,” he said. “If you can’t have that offering, people are going to go to someone who does.”

An Industry Prepared for Sports Betting Tribal governments have primacy for regulating Indian casinos, spending in excess of $320 million a year on commissions employing some 5,900 auditors and agents.

The industry is also subject to oversight and co-regulation by the NIGC, state offices and the federal Treasury Department.

Indigenous governments with the onset of early gambling and enactment of IGRA in 1988 relied on expertise from the commercial segment of the industry to help operate and regulate their casinos.

Tribes now have their own specialists who are expected to guide the industry through the evolution of sports betting and internet and mobile gambling.

“When you look at Indian gaming today—2018 compared to 1991 and before—it’s come a long way,” says a tribal regulatory specialist who requested anonymity. “Tribes once turned to the experience of commercial gaming people to bring expertise to Indian Country. But over the years, tribes have built their own expertise and talents. Many tribes today have the technical expertise.

“I really feel over the last two years tribes have been getting educated about this topic,” the specialist says of sports and internet gambling. “It’s been coming up more and more at the conferences. And it’s starting to dominate the conferences.

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“Tribes are very cognizant of what’s coming. They’re very aware of the future. They’re very able to bring their expertise to the table and draft the documents and ordinances necessary to do the job.”

Regulating sports betting is not a complicated endeavor.

“It’s an easy business to regulate,” says Richard Schuetz, a veteran industry executive and regulator. “It’s actually cleaner than table games. You hand somebody cash and they hand you a receipt.”

“Actually I don’t think it’s going to be that difficult,” Hummingbird says.

“A lot of the regulatory pieces are in place already.

“There are things you’re going to have to beef up on from the technology side,” he says, including geolocation and identity security for online and mobile gambling.

“The big thing is getting technology put in place and getting people trained in the technology.”

“It’s not all that complicated,” says Norm DesRosiers, a regulatory consultant and former member of the NIGC. “It’s all in the totalizers, the betting equipment. You get the right IT people in there with the right technology, it’s all pretty simple.

“My feeling is tribes are not going to reinvent the wheel,” DesRosiers says.

34

“When you’re able to gamble on every play, by every player, of every game— from the phone, at the arena or from home—that’s something very different from what we’ve ever had.”

—Keith Whyte, Executive Director, National Council on Problem Gambling

“They’re probably going to look at New Jersey and Nevada models for regulating sports betting when the time comes.

“Tribes that are serious about it are going to hire experts in doing sports betting, and that could be experts from anywhere from Las Vegas to Europe. They’re going to bring in people with experience. They’re not going to do it themselves.

“How it’s going to be regulated is going to depend on how it’s legislated,” DesRosiers says, largely whether tribes will retain exclusivity and operate sports betting under IGRA. Some states may require tribes to operate commercially, taxed and regulated by states.

“All of these are unanswered questions,” he says.

NIGC has limited jurisdiction over Class III casino gambling, which most legal authorities believe includes sports betting. The federal agency has only mildly weighed in on the issue.

“As federal regulators, we have learned firsthand that there is tangible benefit to having tribes, as primary regulators, driving decisions as how gaming will operate on their own lands,” the agency said in a release.

Global Gaming Business AUGUST 2018

GlobalGa

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“The impact of technology on gaming has been profound, and it’s really been an impact on politics and policies,” Whyte says. “The greatest risk is that states, and perhaps some tribes, some operators, will screw things up and there will be a massive integrity scandal or problem gambling scandal. And all the hard-fought gains will be lost.”

Although IGRA calls for tribes to enter into regulatory compacts with states, it’s the indigenous governments that have taken the lead on policing the casino industries, providing training and guidance to state agencies.

And it’s tribal gambling—the largest segment of the nation’s legal casino industry—that will continue to lead the way as the nation evolves into sports and internet gambling.

“If this thing is going to actually work, it’s not just going to be the commercial operators,” Hummingbird says. “It’s going to be the tribes. In a lot of ways, the tribes are going to be more heavy actors than the commercial operators.

That’s the way I look at it.

“We have this covered. Our policies are tried and true and have been in effect for years. We’ve got qualified people. Many are credentialed. We have former law enforcement people. We have technological people. We’ve got compliance people.

“We’ve got this down.”

As federal and state governments consider how to address sports betting, we anticipate tribes will be given a seat at the table to voice their positions, bring their perspectives and collective expertise and maintain regulatory and operational control over the gaming on their lands.”

States Need to Meet the Demand “From a regulatory standpoint, we can handle whatever the legislature puts in front of us,” Stearns says.

But while there remains confidence in the tribal track record of gambling regulation, there is a concern states and the tribal and commercial industry will not keep pace with the evolution to internet and mobile sports wagering.

“When you’re able to gamble on every play, by every player, of every game—from the phone, at the arena or from home—that’s something very different from what we’ve ever had,” says Keith Whyte, executive director of the National Council on Problem Gambling.

“It’s a profoundly big and a profoundly risky expansion of gambling.”

Whyte warns that state officials have not stressed regulations and problem gambling in their rush to legalize sports and internet gambling. A regulatory failure dealing with sports betting or internet gambling could seriously damage the industry.

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TABLE GAMES

Quick! Make a Decision Is the risk of being first a better advantage than making it better?

W

ell…

Long before Ronald Reagan became president—Ronald Reagan, the actor?!—he was making movies in Hollywood for Warner Bros. Like literally, the Warner brothers. Later in life, he would recall in one of his more famous quips, that Harry, Albert and Jack didn’t want those movies perfect.

“They wanted them,” Reagan said, “Thursday.”

Ah, the eternal struggle between the mutually exclusive. Republican vs. Democrat. Android vs.

IOS. Fahrenheit vs. Celsius. Ginger vs. Mary Ann. Right vs. right now.

“It’s true hard work never killed anybody, but I figure, why take the chance?” was another Reaganism, but this was more tongue-in-cheek than matter-of-fact. It’s reasonable to assume that effectiveness correlates to effort, because, duh, it does.

You reap what you sow, you get out what you put in, etc., etc., etc., yada, yada, yada.

But only to a point.

Then the law of diminishing returns crashes the party and drops a king-sized Snickers in the pool. And of course, as everyone knows (or Googled it 10 seconds ago), the law of diminishing returns states that at some point in any process, inputs exceed outputs. Think of the classic learning curve, how it arcs obtusely at first, like a basketball shot out of a phone booth, only to become more and more acute, and then flat-lining, like a basketball shot out of a mailbox.

And let’s face it. Those Warner boys could have poached Frank Capra from Columbia Pictures and Jean Harlow from the graveyard, but Cowboy from Brooklyn and Girls on Probation weren’t taking home any Oscars.

That being said, and the law being the law, were Reagan’s bosses right? When exactly should you stop fiddling with that investor deck? When should you stop rehearsing your presentation?

When should you stop tinkering with the math on that new slot machine or the layout design of that new game?

Depends.

And do you know what depends on your knowing what it depends on? Your worth as an ex-

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By Roger Snow

ecutive. Yup. It’s right up there with seeing the future before anyone else does, or finding hidden value in an asset, or marshaling the power of your employees.

Because. Business. Moves. Too. Fast. To. Waste. Time. But it’s also too competitive, too dynamic to reward mediocrity.

There’s the rub. (There’s the rub.)

Here are a few hints to rub those vacillations and make them convictions, to turn those ummms and hmmms into yeas or nays:

Whistle While You Work The first rule of decision-making is to—wait for it—make a decision. No tabling. No deferring.

No kicking the can down the road. Just blow the whistle and make the damn call.

Take it from author and perennial hairdo-ofthe-year candidate Malcolm Gladwell, who posits in his book Blink that our initial two-second judgments are more accurate, on average, than those that come about from protracted deliberation. Thinking longer does not guarantee thinking better.

Trust your gut.

Consensus Killer In Let it Ride, one of the more watchable films ever made about gambling, Richard Dreyfuss plays a horse bettor having, as he says repeatedly to anyone that will listen, “a very good day.” In one race, to keep his lucky streak alive, Dreyfuss canvasses the track-fleas for their bets, knowing full well they couldn’t pick the winner if they had tomorrow’s newspaper in front of them. One by one they tell him their horse, and one by one Dreyfuss scratches them off the form until, by process of elimination, there is one stallion standing.

Which of course goes on to win.

The second rule of decision-making is when everyone agrees, be afraid. Be very afraid. If you look back over your career, over the good decisions and the bad, you’ll find that many times, the disastrous was preceded by the consensus. “If everyone is thinking alike,” George Patton said, “then nobody is thinking.”

Not Created Equal Blackjack is a game of skill, in that your decisions affect the outcome. As such, there are good blackjack players and mediocre blackjack players and horrible blackjack players. What makes them one or the other comes down to their adherence to “the book,” also known as basic strategy.

But in blackjack, some decisions matter more than others. Got an 11 vs. a 9? Doubling down is far and away the best move. But you got a 12 against a 4? Meh. Hit or stand, who cares? The mathematical return is nearly identical.

Same goes for business.

The third rule of decision-making is to know the big ones from the little ones, the material from the immaterial, the whales from the guppies. And most of what swims by your office on a daily basis is a school of guppies. Dismiss them with dispatch.

Your instincts (see Rule No. 1) are probably right.

Sell It The fourth rule of decision-making is to sell like hell. Once you’ve made a call, particularly an unexpected or controversial call, you’ve got to win over the hearts and minds of everyone, from those indifferent to what you’ve done to those aghast at it.

Find the biggest doubters in the company and take them head on. Don’t hide behind your desk and your title and your email address. Get out there, face-to-face, and turn those potential adversaries into proselytizing advocates. Tell them how their opposition sharpened your thinking. Tell them how your decision was actually predicated on your confidence in their ability to execute on something so bold.

Tell them whatever, but tell them this is the way you are going and you need their help to get there.

And never, never, never waver. The consistence of your convictions, like a wrecking ball hitting the side of a building, will eventually lay waste to even the strongest resistance.

Roger Snow is a senior vice president with Scientific Games. The views and opinions expressed in this article are those of the author and do not necessarily reflect the views and opinions of Scientific Games Corporation or its affiliates.

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Under the Wire Did the Supreme Court reinterpret the Wire Act to allow cross-border internet sports betting?

By Daniel Wallach

T

he U.S. Supreme Court’s landmark decision in Murphy v.

NCAA dramatically altered the landscape for sports betting in the United States by declaring that the Professional and Amateur Sports Protection Act (PASPA) is unconstitutional. As a result of this decision, states are now free to legalize sports betting without any federal interference.

Previously, PASPA had prohibited most states from authorizing or licensing sports betting within their borders. But some legal commentators now believe that the court’s decision may have gone even further by allowing states to authorize sports betting across state lines, which could dramatically expand legalized sports betting through the use of the internet.

At issue is the court’s brief discussion of the federal Wire Act at page 28 of the Murphy opinion. With the demise of PASPA, the Wire Act looms as the most important federal law affecting the future of sports betting. In short, the Wire Act prohibits any person or entity engaged in the business of sports betting from using “wire communication facilities” (such as the telephone or the internet) to “transmit” bets or wagers on sporting events—or even “information” relating to bets or wagers—through “interstate commerce,” which generally (but not always) means across state lines.

Even with the Supreme Court’s invalidation of PASPA, the Wire Act would still stand as a formidable legal obstacle for the transmission of sports wagers across state lines, even in those situations where both of the states at issue (i.e., the state where the wager was initially placed, and the state where the wager is ultimately received) had legalized sports betting. This is because the Wire Act criminalizes the interstate transmission of all bets and wagers on sporting events, regardless of whether such betting is legal in a particular state.

Unlike several other federal anti-gambling laws (such as the Travel Act), the Wire Act does not require a predicate violation of state law to support a

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criminal conviction. Stated another way, the legality of sports betting in a particular state would not provide any defense to a Wire Act prosecution where the charged offense is based upon the interstate transmission of a “bet” or “wager.”

The Disputed Paragraph The Supreme Court’s brief discussion of the Wire Act may have turned that thinking on its head. At page 28 of the Murphy opinion, the Supreme Court compared PASPA to several other federal anti-gambling laws (including the Wire Act and the Travel Act), and observed that such federal laws “respect the policy choices of the people of each state on the controversial issue of gambling.” As described by the court: Under § 3702(2) [of PASPA], private conduct violates federal law only if it is permitted by state law. That strange rule is exactly the opposite of the general federal approach to gambling. Under 18 U.S.C. § 1955 [the Illegal Gambling Business Act], operating a gambling business violates state law only if that conduct is illegal under state or local law. Similarly, 18 U.S.C. § 1953 [the Interstate Transportation of Gambling Paraphernalia Act], which criminalizes the interstate transmission of wagering paraphernalia, and 18 U.S.C. § 1084 [the Wire Act], which outlaws the interstate transmission of information that assists in the placing of a bet on a sporting event, apply only if the underlying gambling is illegal under state law. See also 18 U.S.C. § 1952 [the Travel Act], making it illegal to travel in interstate commerce to further a gambling business that is illegal under applicable state law.

These provisions implement a coherent federal policy. They respect the policy choices of the people of each state on the controversial issue of gambling.

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Through this passage, the Supreme Court appears to be suggesting that each of these federal gambling laws (including the Wire Act)—in order to give rise to a federal criminal offense—requires an underlying violation of state law. This dicta (meaning not essential to the court’s main holding) could dramatically change the longstanding interpretation of the Wire Act by imposing a new requirement that the betting or wagering at issue would have to violate state law in order to be prosecutable. This could be a groundbreaking development, because if the Wire Act is interpreted in this fashion, it would allow states to legalize internet-based sports betting and permit such wagers to be placed by customers physically located outside the state.

The Wire Act Does Not Require a Predicate State Law Offense These views, however, do not comport with the plain language of the Wire Act, which makes no reference to state law in the main section of that statute.

Indeed, the relevant portion of the Wire Act, subsection 1084(a), provides as follows: Whoever being engaged in the business of betting or wagering knowingly uses a wire communication facility for the transmission in interstate or foreign commerce of bets or wagers or information assisting in the placing of bets or wagers on any sporting event or contest, or for the transmission of a wire communication which entitles the recipient to receive money or credit as a result of bets or wagers, or for information assisting in the placing of bets or wagers, shall be fined under this title or imprisoned not more than two years, or both.

This provision contains two broad clauses. The first bars anyone engaged in the “business of betting or wagering” from knowingly using a wire communication facility “for the transmission in interstate or foreign commerce of bets or wagers or information assisting in the placing of bets or wagers on any sporting event or contest.”

The second bars any such person from knowingly using a wire communication facility to transmit communications that entitle the recipient to “receive money or credit” either “as a result of bets or wagers” or “for information assisting in the placing of bets or wagers.”

Again, there is no mention of “state law” anywhere in subparagraph (a) of the Wire Act. Now, compare that with the other federal gambling laws cited by the Supreme Court in the Murphy opinion. In contrast to the Wire Act, the Illegal Gambling Business Act, the Interstate Transportation of Gambling Paraphernalia Act and the Travel Act each expressly require that there be an underlying violation of state or local law in order to give rise to a federal criminal prosecution. See 18 U.S.C. § 1955(b)(1) (An “illegal gambling business” means, in relevant part, a gambling business which “is a violation of the law of the state or political subdivision in which it is conducted. . . .”); 18 U.S.C. § 1953(b) (“This section shall not apply to the transportation of betting materials to be used in the placing of bets or wagers on a sporting event into a state in which such betting is legal under the statutes of that state.”); 18 U.S.C. § 1952(a)(3) & (b)(1) (makes it a federal offense to travel in interstate

commerce with the intent to promote or facilitate the promotion of any unlawful activity, including “any business enterprise involving gambling in violation of the laws of the state in which they are committed…”)

The absence of any reference to “state law” in Section 1084(a) logically precludes any assertion that a violation of state law is required to support a Wire Act conviction. Courts interpret statutes in accordance with their plain and ordinary meaning, using the words actually employed in the statute as the interpretive guidepost, and will not rewrite a statute to insert additional words, as would be the case in engrafting a “state law violation” requirement in Section 1084(a) where no such requirement existed previously.

Indeed, every federal court that has analyzed the issue in-depth has concluded that the Wire Act does not require an underlying violation of state law.

Moreover, even if internet gambling were permissible under state law, using interstate wire communication facilities to promote it would not be.

This is why the Wire Act, unlike the Travel Act and 18 U.S.C. § 1955, does not require an underlying violation of state law.

Selective Use of Legislative History If the cases are that clear-cut—and I believe that they are—then why do some legal analysts assert that the Supreme Court reinterpreted the Wire Act through its apparent suggestion that an underlying state law violation is required? The reason for this wishful thinking may stem from the statute’s legislative history, which recognizes that one of the intended purposes of the Wire Act was to “assist the various states in the enforcement of their laws pertaining to gambling, bookmaking, and like offenses.”

Since one of the purposes of the Wire Act is to “assist the states” in the enforcement of gambling laws, there is this misconception that a violation of the Wire Act must necessarily be tethered to a violation of state law.

The linkage of the Wire Act to an underlying state law offense ignores the act’s other principal purpose, which is to “suppress organized criminal gambling activities as a matter of national policy.” As numerous court decisions have explained, “assistance to the states” was only “part of the reason” for the enactment of the Wire Act in 1961. Indeed, as the statute’s legislative history makes clear, the Wire Act “was part of an omnibus crime bill that recognized the need for independent federal action to combat interstate gambling operations.” The cases plainly recognize that the Wire Act is “part of an independent federal policy aimed at those who would, in furtherance of any gaming activity, employ any means within direct federal control.”

The Supreme Court Was Referring to the “Safe-Harbor” Provision This begs the question: did the Supreme Court simply make a mistake when it included the Wire Act within the group of federal gambling laws that “apply only if the underlying gambling is illegal under state law?” I don’t believe that the highest court in the land would make such a fundamental mistake—or attempt to dramatically alter the meaning of a federal law (the Wire Act) that was not even at issue in the Murphy case.

Every federal court that has analyzed the issue in-depth has concluded that the Wire Act does not require an underlying violation of state law. Moreover, even if internet gambling were permissible under state law, using interstate wire communication facilities to promote it would not be.

AUGUST 2018 www.ggbmagazine.com

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The Supreme Court’s ambiguous and imprecise reference to the Wire Act raises a more fundamental question: Is it time to finally amend the Wire Act to allow interstate sports betting where it is legal in the affected jurisdictions?

A closer reading of the court’s opinion suggests that a different meaning was intended. In its brief discussion of the Wire Act on page 28, the Court characterized that statute as “outlawing the interstate transmission of information that assists in the placing of a bet on a sporting event.” The key word here is “information,” which, in this context, refers to the “safe-harbor” provision in Section 1084(b) of the Wire Act. The Wire Act’s safe-harbor provision, set forth in subsection (b) of Section 1084, provides, in relevant part, that there shall be no criminal liability “for the transmission in interstate commerce of information assisting in the placing of bets or wagers on a sporting event or contest from a state or foreign country where betting on that sporting event or contest is legal into a state or foreign country in which such betting is legal.”

Through this safe-harbor provision, Congress sought to immunize the interstate transmission of “information”—such as the odds placed on a particular contest by oddsmakers—that assist in the placing of a bet or wager on a sporting event, but only if the underlying gambling is legal in both the “sending” jurisdiction (i.e., the state from which the information was sent) and the “receiving” jurisdiction (i.e., the state from which it was received).

A good illustration of what this safe-harbor means in practice can be found in United States v. Lyons, a First Circuit decision from 2014. In that case, the First Circuit provided an example of the safe-harbor provision in the context of horse-race wagering, observing that “if New York allows betting on horses at race tracks in New York, and if Nevada allows betting in Nevada on the results of New York horse races, then information may be wired from New York to Nevada without violating the statute.”

Extending that hypothetical to the sports betting context, the import of the safe-harbor provision is clear: a business that provides odds or even risk management services to a sports betting operator located in a jurisdiction where sports betting is legal (such as New Jersey, Mississippi, Delaware and West Virginia) must send or “transmit” that information from a state where sports betting is also legal. Thus, for example, a company like William Hill US, which provides risk management services to the Delaware Lottery (the operator of sports betting in Delaware) can do so without triggering a potential Wire Act violation because it is transmitting that “information” (e.g., risk management services) from the state of Nevada, where sports betting has long been legal.

Viewed through this lens, the court’s statement on page 28 is actually correct, albeit, not for the reasons that some commentators believe. To be sure, the Supreme Court could have been much clearer in its discussion of the Wire Act. Technically speaking, the Wire Act does not—as the Supreme Court put it— “outlaw” the interstate transmission of “information” assisting in the placing of a bet or wager on sporting events when the underlying gambling is illegal under state law. More precisely, the Section 1084(b) “safe-harbor” exemption is merely rendered unavailable to a defendant when the “information” at issue is transmitted to or from a state or foreign jurisdiction where sports gambling is illegal.

While that’s not exactly the same thing as saying that the transmission of “information” is outlawed, as a practical matter, it has the same effect.

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Internet Sports Betting Across State Lines Remains Illegal

As to the “bets” or “wagers” themselves, they remain illegal under Section 1084(a) of the Wire Act, even when transmitted between states where sports betting is legal, notwithstanding the disputed language in the Murphy opinion.

In other words, the Wire Act’s safe-harbor provision (Section 1084(b)) only applies to the transmission of “information” assisting in the placing of bets or wagers, but not to the transmission of the actual bets or wagers themselves. So the Supreme Court’s language on page 28 is applicable “only to information assisting in the placing of a bet on a sporting event, not to actual sports bets.” Thus, at least for now, the ability of states to allow for the transmission of wagers across state lines remains curtailed by the Wire Act. If you don’t want to take my word for it, consider the viewpoint of Theodore B. Olson, the esteemed lawyer who successfully argued the Murphy case on behalf of the state of New Jersey. In a CLE presentation given three days after the Murphy opinion was issued, Olson and fellow Gibson Dunn colleagues Matthew McGilland and Debra Wong Yang (a former United States Attorney for the Central District of California) opined that while the Wire Act “does not make unlawful the transmission of ‘information assisting in the placing of bets or wagers on a sporting event or contest’ if made from and into states ‘in which such betting is legal”—essentially tracking the Section 1084(b) safe-harbor language, they maintained that the Section 1084(b) safe-harbor exception “does not apply to the actual bets or wagers.”

Amending the Wire Act to Allow Interstate Sports Betting The Supreme Court’s ambiguous and imprecise reference to the Wire Act raises a more fundamental question: Is it time to finally amend the Wire Act to allow interstate sports betting where it is legal in the affected jurisdictions?

From a drafting standpoint, it would require only a simple tweak of the Wire Act’s safe-harbor provision—Section 1084(b)—to add the words “bets or wagers” to the already-existing “information” so that all bets, wagers and information transmitted by businesses to and from legal jurisdictions would be covered by the safe-harbor provision so long as that activity was legal in both states (the sending and receiving states) and was done in compliance with the law of each state.

There are many good policy reasons to amend the Wire Act in this fashion.

Chief among them is that it would foster the growth of online sports betting across state lines, the effect of which would be to capture a greater percentage of offshore betting markets, which are readily accessible to customers in the U.S. through unblocked internet sites.

Eighty percent of the current illegal betting is conducted online, so if we hope to create an alternative to black-market betting, states must be free to authorize mobile betting, including the ability to pool wagers across multiple states. The illegal markets are so popular in part because consumers have gotten a quality, efficient product online. To capture customers from the illegal market, U.S. operators must be able to provide a level of service and access that bettors

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have grown accustomed to over the years, which means it has to be online, accessible via mobile devices and extremely convenient to use.

Additionally, the Wire Act—in its current iteration—poses an unnecessary (and unintended) level of risk to companies operating legally even in those states that have authorized mobile sports betting. For example, those states that have legalized mobile sports wagering are doing so based on the logical premise that wholly intrastate betting would not violate the Wire Act. But there is a body of jurisprudence which recognizes that even where a wire communication originates and terminates in the same state, it could still be deemed a transmission in “interstate commerce” when it is “routed” through another state, as often occurs.

The U.S. Department of Justice’s 2011 opinion on the Wire Act— which opened the door to state-authorized online poker—referred to this quandary when it noted that the DOJ “has consistently argued under the Wire Act that, even if the wire communication originates and terminates in the same state, the law’s interstate commerce requirement is nevertheless satisfied if the wire crossed state lines at any point in the process.”

Finally, even the meaning of the term “information” is unclear under the Wire Act, since it is not defined by the statute. Further, the case law provides very little guidance. According to one federal district court opinion, “information” would include “knowledge that may influence whether, with whom, and on what terms to make a bet.” But that statement analyzes the issue solely from the vantage of the bettor, and does not address

the vast array of other services that are provided to betting operators which are not visible to the customer.

With sports betting about to become more broadly legal nationally—perhaps in as many as 20 to 30 states by the year 2020—those companies that wish to provide risk management services to casinos and other sports betting operators are in a state of uncertainty as to whether those services rise to the level of “information” under the Wire Act, since it would not assist in the “placing” of a sports bet by a customer, but, rather, would only assist the sports-betting operator in managing its risk.

An amendment of the Wire Act to clarify this issue would provide a level of comfort to those suppliers who are not located in jurisdictions where sports betting is legal, and would prefer to avoid having to invest significant resources in servers and other technology infrastructure in those states just to comply with a Wire Act provision that may or many not even be applicable based upon the language of the statute.

Daniel Wallach is a shareholder in Becker & Poliakoff, P.A.’s Fort Lauderdale, Florida office, and has counseled professional sports teams, casinos, sports-betting operators and fantasy sports companies in navigating the complexities of U.S. gambling laws and regulations. This article originally appeared in Forbes magazine online.

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SPORTS BETTING

R O U N D U P

MLB, NCAA Clarify Positions on ‘Integrity Fees’ op officials of Major League Baseball and the National Collegiate Athletic Association clarified their positions on so-called “integrity fees” in connection with legal sports betting in separate forums last month.

MLB is one of the professional sports leagues which, along with the National Basketball Association, has lobbied for state sportsbetting laws to include fees to each league in connection with wagers on their games. Some call them “integrity fees” to cover purported extra costs of maintaining the integrity of the games in the face of expanded sports wagering. Others call it a “royalty” on the “intellectual property” of the games themselves. Opponents call it a simple money grab by already-rich leagues.

MLB Commissioner Rob Manfred explained his position on the Boomer and Gio sports talk radio program in New York, saying his primary goal in seeking a fee is to protect the integrity of baseball.

“Integrity monitoring is a really expensive undertaking,” Manfred said. “It’s very sophisticated. It involves the analysis of massive amounts of data in order to detect patterns in the betting that can be of concern.”

Manfred first said the league only wants a portion of sports wagers to cover those increased monitoring costs and not to make profits, but later showed his hand that he considers it a fair royalty.

“I do not think it’s unreasonable to suggest that people who are free riding on our product should have to compensate us,” he said.

T

Congress to Hold Sports Betting Hearings he U.S. House of Representatives T posted a schedule for the first congressional hearing on legalized sports betting in July but quickly postponed it. It would have been the first crack at legalized sports betting by the U.S. Congress since the U.S. Supreme Court struck down the federal ban on sports betting under the Professional and Amateur Sports Protection Act (PASPA) as unconstitutional.

The hearing, before the House Subcommittee on Crime, Terrorism and Homeland Security, titled “PostPASPA: An Examination of Sports Betting in America,” was postponed only hours after the date was posted, with no new date for the hearing noted.

The hearing, when it does take place, will examine the prospects of a federal bill to regulate sports wagering, a move that the American Gaming Association and other sportsbetting proponents have declared unnecessary. “States and tribes have proven to be effective regulators of gaming,” AGA President and CEO Geoff Freeman said at the recent customer conference staged by slotmaker AGS. “There’s nothing left for Washington to do. They tried that once, and we saw how it worked.”

No bill to regulate sports betting has surfaced yet in Congress, although Senator Orrin Hatch announced a plan to draft a bill.

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Global Gaming Business AUGUST 2018

Rob Manfred, commissioner of Major League Baseball

Current casino states that have enacted sports wagering are generally dead-set against paying royalty fees. For instance, New Jersey state Senate President Stephen Sweeney said in May that the state will never approve such fees to the leagues.

“The leagues are asking to be paid to allow games to be played fairly,” Sweeney wrote in a letter to governors of all 50 states last month.

Manfred said in the radio interview that MLB should not “rely on a bunch of state regulators to ensure the integrity of our sport,” although states have effectively regulated all forms of gaming for decades. “Quite frankly, I don’t believe they’ll be as good at it as we will be,” he said.

Meanwhile, a top NCAA official said the collegiate sports organization will not pursue sports betting integrity fees.

Speaking to a group of college athletic business administrators at the National Association of Collegiate Directors of Athletics’ annual convention, NCAA Senior Vice President and Chief Financial Officer Kathleen McNeely said that as long as sports-betting regulation is

conducted on a state-by-state basis, individual schools should decide whether or not to pursue such fees from sports-betting operators.

(The NCAA and the NFL are advocating for federal regulation of sports betting.)

Some schools are already advocating for fees. Penn State President Eric Barron, in a letter to the state gaming board asking for a moratorium on wagers involving in-state college fees, suggested that his school may lobby for some type of integrity fee to pay for compliance hires and other sports betting-related expenses. The University of Pittsburgh has also floated the idea of an integrity fee.

McNeely said the NCAA national office “will not be going after any gambling revenue. We know it will cost money to monitor, but (NCAA President) Mark Emmert has been pretty firm in saying he doesn’t think it’s appropriate for the NCAA to try to access that revenue. Schools will need to look at their own values and decide.”

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New Jersey Sports Betting Off to Good Start Dennis Drazin, president and CEO onmouth Park Racetrack in of Darby Development, which operates Oceanport, New Jersey, and the the track, told the Asbury Park Press the Borgata casino in Atlantic City both re“numbers have been very strong.” ported a strong first week of sports bet“I think this shows you sports betting in the state. Later, the new Ocean ting is not going to cannibalize our prodResort in Atlantic City and the Meaduct. In fact, it makes it even stronger owlands racetrack opened their own when we have more people there doing sports books. both,” Drazin said.

State regulators have not released The Borgata—which has opened its any official numbers, but officials for sports book alongside its already-operatboth facilities told the Associated Press ing race book—also said business is up. they are very pleased with their initial Lines were out the door over the first few days of legal sports betting “The revenue was definitely beyond numbers. at Atlantic City’s Borgata what it would have been,” casino spokesThe two initial sports books were the woman Liza Costandino told the AP. first in the state to offer live sports betting and the one at Ocean.

Costandino also said sports wagering is atsince New Jersey won its battle to strike down a fedAccording to local reports, the track saw large tracting new demographics to the facility, ineral ban on sports betting before the U.S. Supreme crowds for its first full weekend with sports betcluding younger players and more female Court. Sports betting went live in the state June 14. ting, including attendance of more than 23,000 players.

“We’re really pleased with the early results, espefor Father’s Day, more than 5,000 more than last “A full bachelorette party came in and they cially considering it’s a slow time on the sports betyear. The track also featured a full slate of racing all made sports bets,” Costandino said. ting calendar,” said Joe Asher, CEO of William Hill for the weekend.

US, which runs the sports book at Monmouth Park

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SPORTS BETTING

R O U N D U P

Rhode Island Legalizes Sports Betting sports betting bill, H7200A, was approved last month by the Rhode Island legislature and signed by Governor Gina Raimondo as part of the state budget. The governor had anticipated this by already budgeting $23.5 million in the current budget for a sports betting program. For that amount to be collected in taxes, the industry would need to take in $900 million in bets.

The betting sites could be operating as soon as October 1.

The bill does not include language for an “integrity fee” that would benefit sports leagues such as Major Rhode Island Governor League Baseball, and Gina Raimondo in fact specifically bans such a fee: “Under no circumstances shall the state or the division pay an integrity fee to any sports league.” In addition, it only authorizes land-based wagering, not mobile.

Under the bill, the Rhode Island Lottery will administer sports betting in cooperation with the state’s two Twin River casinos, tentatively beginning October 1. Lawmakers contend that to extend sports wagering online or on mobile platforms would take a vote of the people.

The host communities, Lincoln and Tiverton, would each collect $100,000 annually for sports betting. The state will collect 51 percent, the vendor (most likely IGT, since it was the only bidder for a sports wagering contract) will collect 32 percent and the casino itself will collect 17 percent.

That 51 percent is the largest share of sports betting revenue of any state so far, and could be a deal-killer.

Eric Ramsey of RK Forum says he is skeptical that the state will collect that much in taxes, noting that Nevada’s world-class, mature sports betting market collects $5 billion in wagers. He wrote, “Rhode Island can expect to take about one-fifth of Nevada’s wagering handle, but it’s hard to imagine numbers that rosy.”

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Mississippi Casinos Prepare For

SPORTS BETTING

aturday, July 21 was slated as the first day sports bets were to be placed at one of Mississippi’s 28 casinos. The Mississippi Gaming Commission adopted the regulations for sports betting on June 21, and a 30-day waiting period followed. Beau Rivage is likely to be the first casino to offer a sports book. Casinos owned by corporations that operate sports books in Las Vegas, like MGM, Caesars Entertainment and Golden Nugget, are expected follow soon after.

Beau Rivage Vice President of Marketing Brandon Dardeau said, “Beau Rivage is on track to take wagers the day sports betting regulations go into effect. Construction has already begun on our provisional seven-window sports betting facility, which will be located outside the poker room.

We have looked forward to offering sports wagering in Mississippi for many years.”

Beau Rivage, Harrah’s Gulf Coast Casino, Scarlet Pearl Casino and Hard Rock Casino Biloxi all are running help-wanted ads for sports book staff.

At the Golden Nugget Biloxi, General Manager Chett Harrison said, “We’ve been working on plans since probably early spring. We’ll be ready for football and in some form for the opening of sports betting.”

Harrison said Michael Patrick’s sports bar will become the site of sports betting with the Vegasstyle atmosphere, where guests can place wagers, dine and watch the games. “It’s going to be great,

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especially during football season, the Final Four and other big sporting events,” he said.

Hard Rock Biloxi General Manager Todd Raziano said, “We plan to be open by football season, just like everyone else.” He added management is considering various locations inside the casino to “create an experience for sports bettors.”

General Manager Jonathan Jones at Harrah’s Gulf Coast in Biloxi said, “We are looking forward to capitalizing upon this new opportunity, and to debut this new and exciting feature at our resort and casino.” Jones said Harrah’s is designing a space for sports betting and noted the casino’s parent company, Caesars Entertainment, “has a fantastic infrastructure already in place for us to capitalize upon. We expect to give our guests the ability to wager on sports at Harrah’s beginning with the 2018 fall football season.”

At Palace Casino Resort in Biloxi, General Manager Keith Crosby said sports betting will be located at the Contact sports bar. He added finding equipment has been challenging.

“Suddenly there’s a very large interest in a very limited amount of equipment,” he said. Still, he expects sports betting to be available by the start of football season. “I think that’s what everyone’s targeting,” he said, noting sports betting probably won’t be a big money-maker for casinos. “It’s a nice addition to what we offer but you couldn’t get a seat in Contact during football (even) without sports betting.”

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g n i n r u T the Tables How technology and e-tables have advanced earnings for table games

By Dave Bontempo

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aming’s revitalized pit draws varied inspirations.

A daring, cutting-edge trend boosts the area long known as two rows of gaming tables arranged backto-back. Space between rows, often reserved for dealers or supervisors, may now include a DJ, personal terminal, or chip reader. The pit has become younger, saluting the new breed that steadily sparked its resurgence.

Classic games have a twist, augmented by flickering lights, loud music and upbeat pace of play. Electronic table games (ETGs), bonusing mechanisms and analytical software provide different means to a similar end. ETGs embrace a visually stimulated audience. Analytic software tracks all player levels. And the gaming Scientific Games’ I-table Roulette menu expands. More millennial-mindset options like tournaments, stadiums and social chatter. placements.

As the pit vies for space in a casino industry fighting for entertainment “It’s a juggernaut,” he asserts. “We dollars, its evolution is significant. Outside-the-box thinking affects what goes expect to exceed 1,000 by the end of the inside the pit. Software, bonusing and ETGs impact the pit’s future EKG. year, and given the number of blackjack ta“The role of e-tables in particular has changed,” says Roger Snow, senior vice president of games and card shufflers for Scientific Games. “Not too long bles around the world, it should spend another three to four years in this growth ago, in the U.S. at least, e-tables were the low-rent district of table games. spurt.”

That’s where you found $1 blackjack or $5 baccarat. Or they flourished in Snow says innovations like these have revived the pit. markets like Pennsylvania, which back then didn’t allow traditional tables. But “I think businesses evolve the same way organic life does, by accident,” it’s a whole new ballgame now. E-tables are becoming a more prominent part Snow says. “If you go back 10 or 15 years, table pits were on the ropes... But of casinos, and it’s not all about price. If fact, you will find that some highthen a funny thing happened: Casinos started to experiment with different limit players prefer playing in a stadium gaming setup over a felt game. It’s more comfortable, more private, more enjoyable. It’s a startling development.” games, different price points, party pits, etc., and table games started making a comeback. Not everything worked, but as in nature, what did work ended up spreading. And we caught a lucky break with young people, because for The Science of Change Snow authors his share of startling developments. He has created or co-created whatever reason—who knows what they are thinking?—these 20-somethings seem to prefer table games to slot machines. That’s who is driving a lot of the 20 games and side bets played in casinos, including Ultimate Texas Hold ‘em, growth for us.”

Four-Card Poker, Dragon Bonus Baccarat and DJ Wild Stud Poker. Snow’s Their selection blends with a critical business dynamic segmentation. newest effort, Blazing 7s Roulette, which he launched with Scientific Games There are more niches than ever, he says, but they get narrower. In the old employee Michael Vizzo, lets a player win up to 500-to-1 on a single roulette days of television, there were three networks and public broadcasting. In the spin. Blazing 7s Blackjack, for which he credits employees Ryan Yee and the old days of casino pits, there was blackjack, craps, roulette and baccarat. late Jeremy Halter, has been out for about four years and is closing in on 750

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At Seneca Niagara Pulse Arena, guests can choose from interconnected play stations offering roulette, sic bo, craps, blackjack and baccarat

“Now in TV there are hundreds of channels, plus Netflix, Hulu, Amazon, Crackle and dozens of other streaming services,” he says. “And in the new pit, you have one or two tables of all sorts of different carnival games.”

The Pulse of Excitement To win big, one must often think small. Interblock expanded the ETG sector with a fast-paced, endless-action celebration.

The blend of gaming, nightclubs and chatter reveals the heartbeat of many young players. The new pit has steadily raised the ETG realm, from the automated menu that bolstered low-limit areas at slow times to sophisticated stadium seating and now, via Pulse Arena, gaming on rocket fuel.

Unveiled as a cutting-edge approach to younger players in 2015, Pulse Arena continues to ascend. Recent installations of the system, which places ETGs in a club-style entertainment setting, include Jack Entertainment casinos in Cincinnati and Cleveland, Ohio. Jack Entertainment signed a multiyear agreement for Pulse Arena technology with Interblock early in 2018.

This is a vivid demonstration of the new pit placed with a younger audience.

“We have Pulse Arenas on four continents, and the results are essentially the same; we are seeing significant volumes of new carded players enter the casino floor that would have otherwise simply gone to the restaurants, clubs, shops or shows,” says John Connelly, Interblock CEO. “These players do not wish to be put in a corner or dead area of the casino, but instead, they wish to be at the front and center of the action.

What is even more interesting is that the overall handle of the casino adjacent to the Pulse Arena also goes up, despite the lights and sound. Our numbers continue to increase within these environments as we add more content and as casinos begin to put marketing dollars behind the new segment of the floor.”

Players with personal monitors toggle between several games simultaneously, like blackjack, craps, roulette and baccarat. There are DJs, changing lights, a massive video wall and a chat console to announce a great hand to one’s mini-world. Dealers are entertainers, needing no prior experience in the area because a console does the work. They engage. They rap. They lift the temperature in the arena.

There are tournament-style benefits and high-profile visibility, like being selected to play a particular game in full view of the audience. It is the arcade, the nightclub and perpetual stimulation, all linked to gaming.

For Connelly, the ascent of stadium seating and the Pulse Arena extends

a company vision. Interblock already is a worldwide leading developer and supplier of luxury electronic table gaming products. It has gaming solutions and technical support in more than 200 jurisdictions, an exclusive collection of fully and semi-automated electronic gaming tables and video gaming solutions.

“Interblock created a term called the Electronic Table Game Pit over three years ago, with the intention of transitioning under-performing traditional live pits to a more automated or stadium-style offering,” Connelly says. “The stadium, and its social implications, have advanced it to another level. For the first time, we are seeing casinos completely remove live table game pits and go to a strictly automated table game offering. We are seeing more and more casinos begin to evaluate the profitability of ‘overflow’ pits, especially low-denomination pits.

“It is staggering when you begin to evaluate the square footage in a casino that goes unutilized within the traditional table game business on a weekly or monthly basis.”

Connelly says an electronic game’s ability to drive more handle per hour at a significantly reduced operating cost has CFOs and CEOs around the industry calculating numbers. Pulse Arena has been a major catalyst.

Host casinos may christen it by different names, like Synergy Table Games adopted by Jack casinos in Ohio.

Table Trendsetter Of course, no discussion of advancing technology in table games and ETGs, particularly in the European theater, can be complete without the company that has been leading worldwide markets in table-game supply for some 45 years, London-based TCSJohnHuxley.

TCSJohnHuxley has long been at the forefront of injecting new technology into the traditional live table game, most recently showcasing a series of new additions to its stylish e-FX roulette display range. Featuring a variety of double-sided, 27-inch and and newly launched 32-inch displays, all supplied with various LED trend lighting options and case design finishes, e-FX displays incorporate high definition 1080p screens that output crisp, clear graphics, providing excellent visibility of trends to players, from multiple angles across the casino floor.

Other TCSJohnHuxley innovations like Blaze LED Surface Technology and Saturn Glo include patented in-game graphic animations for added excitement to traditional felt tables.

With innovations such as these adding excitement to the traditional pit, AUGUST 2018 www.ggbmagazine.com

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The Qorex user interface makes swapping between games easy.

With the touch of the screen, players can select from various live roulette and baccarat, all with the same intuitive user interface.

Dynamic Dynasty

it was a natural development for TCSJohnHuxley to move into the ETG space, which the company has done with a splash in the launch of the Qorex ETG range.

“Wholly owned, designed and produced in-house, the introduction of Qorex has been a significant milestone for TCSJohnHuxley,” says Tracy Cohen, the company’s director of marketing. “Powered by the Gaming Floor Live platform, the Qorex range of products provides unlimited electronic gaming solutions for any casino floor. Qorex offers the experience of live gaming while delivering the benefits of electronic gaming, such as added security and real-time reporting so casino operators can evaluate the status of their terminals at any time and act immediately as required.”

Cohen says operators appreciate the flexibility Qorex brings to the gaming floor, allowing them to configure a wide range of options including stadium-style layouts with a live dealer, eight-player carousel units and back-to-back formations which include ergonomically designed curved top screens displaying a live feed of the wheel and up to three live game statistics. All these configurations demonstrate the flexibility of a system that allows live, automatic and system-driven play.

In addition to offering roulette and baccarat games on Qorex, new games for the system sometimes are the result of operator feedback. “An example of this is the development of Qorex Gameball for the Sands Group, who approached us to develop a totally unique dice-based version of baccarat that features 12-sided dice that are automatically shaken to produce winning hands,” Cohen explains.

“TCSJohnHuxley has a long association working on custom-developed products with the Sands Group, and the Qorex product was a natural choice to deliver this new game with added features, such as jackpots.”

The benefits of the Gaming Floor Live platform— which powers Qorex and gives operators a real-time, 360degree view of their live table games—includes allowing operators to connect other modules on the platform, such as “Optimisation,” to further evaluate the integrity of wheels by checking for drop zone bias or misalignment.

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International Game Technology has embraced the ETG’s role in the new pit. The London-based company has unfurled a string of significant agreements in this area, touting the time-saving, money-raising aspect of its Dynasty Table Games offering.

In fact, IGT has a unique definition of “packed stadium.” The company made history in 2016 by collaborating with Sands Bethlehem in Pennsylvania to install the nation’s largest live ETG setup. Sands Bethlehem installed 150 of IGT’s Dynasty ETG cabinets, featuring live roulette and live baccarat games.

Two years later, the hits keep coming. In late June, Resorts World Casino in New York announced its players can now enjoy automated roulette on any one of the property’s 32 newly installed terminals. The new terminals feature landscape-oriented, ultra-HD displays, and a variety of configurability options.

“The newly installed IGT Dynasty ETG terminals offer both casual and experienced players a unique, user-friendly way to play their favorite table games,” says Scott Molina, president of Resorts World Casino New York City. “By introducing the Dynasty terminals to our floor, we’ve created an approachable table gaming experience for our players that diversifies our offerings.”

In late spring, Resorts Casino Hotel in Atlantic City announced it will deploy 18 IGT Dynasty ETGs. Live baccarat, roulette and blackjack content will be available on the new terminals.

The new technology delivers traditional table games via one live dealer facing multiple individual players, each equipped with an individual touchscreen betting terminal.

This installation also features IGT’s Live Dealer solution, which allows players to sit at one of the terminals and connect to live table games taking place throughout the casino floor. Each player can utilize the personal space, comfort and freedom of the Dynasty terminals.

While the Dynasty product family enables players to gamble without peer pressure, casinos benefit by cutting costs, IGT officials say. They don’t have to spend on physical tables, chips, table security or live dealers to run all the table games.

The New Jersey casino has also installed IGT’s Live Connect technology, an ETG-integrated solution that enables players to wager on designated live table games on the casino floor from a Dynasty ETG terminal.

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VizExplorer tableViz with ChipVue, powered by ARB Labs

TableViz with ChipVue lets operators accurately rate players and perform advanced operations analysis like true game occupancy, side bet profitability, and managing dealer performance metrics including side bet participation and hand speed by game by session, hour, shift or day-of-week.

“The Dynasty ETG installation at Resorts Casino Hotel in Atlantic City demonstrates IGT’s momentum in this product category and exemplifies our commitment to providing our customers and their players with advancements to the casino entertainment experience,” says Nick Khin, IGT chief commercial officer, gaming. “By adding IGT’s Live Connect technology to its ETG installation, Resorts Casino now offers its players the option to bet on several types of table games, which maximizes the reach of live table games on the casino floor.”

Analyze This San Diego-based VizExplorer helps organizations combine data sources from their systems to uncover actionable insight. It delivers a software platform and applications that deliver deep analytical information.

Its impact brings the pit into the information age.

“The new pit really means the industry learning how to leverage emerging technology in their table-games operations,” says T. Trent Dang, director of gaming operations for VizExplorer. “Due primarily to cost, table-games operations have not been very tech-savvy. Now that new, affordable yet powerful technology exists, operators are looking to technology vendors like us to define how it will be integrated into their operations.”

VizExplorer touts tableViz with ChipVue, which it launched last October to provide an optical, bet-tracking table-game performance analysis. It is powered

by ARB Labs. The product helps casino operators generate slot-like analytics for table games like blackjack and baccarat.

The product is known for accurate bet recognition, even side bets, without requiring new chip sets. It aids in table game player ratings—even for uncarded players—plus the ability to track and measure dealer performance and slot-like analytics for table games to enhance optimization of the table-games area.

Despite its new status, tableViz with ChipVue already offers enhancements.

“What’s new is the optical bet recognition devices embedded in the dealer’s chip tray that capture both infrared and 3-D images of players’ bets, and the machine learning algorithm that learns what the casinos’ chips look like, as well as the environment around the table,” Dang indicates. “After it learns the chips and the environment, the recognition is not affected by things such as a similarly colored beer bottle behind the bet or a bright light coming from a slot machine behind the game.

“And since we now can accurately calculate average bet, decisions per hour, time played (the dealer can open and close a rating directly from the table), and house advantage (the devices also recognize side bets), we can get very granular with our analysis after that data is fed into tableViz.” This is a joint hardware/software solution, Dang says. Minimal ChipVue hardware is installed on every table. The package includes a chip tray with integrated optical bet recognition devices, hand count sensor, card reader, LCD screen and a small server, unobtrusive to the dealer and players, that attaches below the table. From the software perspective, tableViz does the analysis and empowers the operator with unique insights not available for table games until now.

“We have partnered with ARB Labs to integrate our tableViz analytics solution with their revolutionary optical bet recognition device and machine learning algorithm,” Dang says. “Taken together, the solutions deliver slot-level analytics at a fraction of the cost of solutions like RFID.”

Bravo Pit Watch Genesis Gaming Solutions develops hardware and software solutions for casino pit and poker room management and player tracking operations. The Spring, Texas-based company touts its Bravo hardware and software solutions, which offer casino personnel essential management and tracking tools.

The product line has some notable elements.

The Pit Watch module (right) is the heart of the player tracking and management software. Rating information and table statistics are entered and displayed in the program. Floor personnel use Pit Watch exclusively for all player rating activity, rack management, fills/credits, openers/closers and marker activity. The program is easily configured to accommodate different hardware configurations including central pit PC, touch PC at pit table and mobile tablet PC. Supervisors are notified of any customer activity requiring MTL or CTR requirements, and surveillance can monitor the Pit Watch program for player alerts and table monetary activity.

The Bravo Pit, CCD System is a table game player ratings and management system designed to track play using correct hand counts for more accurate player reward calculations. Newly developed sensors are positioned under the table felt to detect where cards or chips are placed to determine when a hand is being played. The sensors are designed to read through fabric, and can detect changes in ambient light to determine where and when objects are placed on top of the table felt.

Optimize Success For Las Vegas-based Tangam Systems, a leader in table games optimization software, the Sands Casino Resort in Bethlehem serves as a prominent install for its award-winning Table Games Yield Management (TYM) software.

The product runs across all table games with the goal of aligning table game mix, staffing, spreads, and pricing to actual patron demand. With the increased visibility, Sands Bethlehem can harness TYM’s analytics engine to ensure the right table games are available to patrons at the right time and price point.

Ari Mizrachi, vice president of operations optimization at Tangam, says the TYM system helps Sands Bethlehem maintain its goals by marrying deep insights to actionable recommendations.

Varun Nayak, senior vice president of gaming strategy for Tangam, says that although an increase in data generates more reports, data is only useful when converted into clear decisions.

Tangam’s flagship software, TYM, is the world’s first and only table games yield management solution that automatically analyzes gaming data to provide actionable recommendations to align game mix, table spreads, and pricing to actual patron demand with intuitive visualizations and predictive analytics to support the decisions.

All told, the new pit is an encouraging saga. “In with the new” did not mean “out with the old.”

AUGUST 2018 www.ggbmagazine.com

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EMERGING LEADERS Luck, Hard Work, Great Mentors Siobhan Lane Senior Vice President of Marketing and Gaming Operations, North America, Aristocrat Technologies, Inc. iobhan Lane oversees the formulation of commercial strategies for the long-term games business of slot supplier Aristocrat Technologies. This includes portfolio strategy, market requirements, product management, and working with the R&D team to ensure customer needs are met.

She also oversees marketing analytics, sales enablement, marketing communications, and Aristocrat’s voice-of-the-customer initiative, just to name a few.

Born in Ireland, Lane moved to the U.S. as a young girl and attended Pennsylvania State University, where she earned a bachelor of science in marketing and international business. Her first job was at an ad agency focused on marketing strategy and advertising for CPG companies, and she settled in Pennsylvania with her husband, but in 2007, his job brought him to Las Vegas. Lane quickly found a home as a marketing specialist at Aristocrat. “I really stumbled across this company,” Siobhan says, describing her entry-level role.

Asked about her career arc, she describes moving to Las Vegas immediately before the recession hit. “It was a really interesting time when I joined,” Lane says, noting not only the recession and the real estate market, but also Aristocrat coming off high growth in the early 2000s. They had a new CEO and management team formulating strategies to carry Aristocrat forward.

When describing her ascension through the ranks, she cites a mix of luck, hard work and great mentors. “There was a lot of right time, right place,” Lane says. “A steep learning curve, but I paid attention, listened, learned quickly, soaked in the information, and developed my network,” helping her become a key part of Aristocrat’s success story.

As for mentors and managers, Lane recalls, “I had a lot of really great managers who are now key leaders on the supplier side... Aristocrat as an organization does a really great job developing its people and presenting them with opportunities to grow.”

She specifically mentions four mentors who played a significant role in her development: Matt Wilson, managing director, Americas at Aristocrat; Mitchell Bowen, managing director, Australia, New Zealand and international at Aristocrat; Dallas Orchard, now senior VP and chief product officer-gaming at IGT; and Toni Korsanos, who until recently was the Global CFO at Aristocrat. Lane says Korsanos’ guidance was invaluable, “especially as a young female working my way through a male-dominated industry.”

Asked about young grads, Lane says, “It’s hard to think of yourself as someone who qualifies as a mentor, but I try to pay that (which I received from Toni and others) forward, to both females and males. But I remember how it felt, and at that time there weren’t as many females in higher-level positions.”

She notes the opportunities in gaming also: “I think this industry is really great for career advancement. I look around at my peers and people I’ve worked for. You can advance at quite a young age if you’re talented and hard-working, and my advice would be to really embrace that.”

When the discussion turned to life out of work, Lane mentioned that she’s a dedicated mom (6year-old twins and a 2-year-old) and wife first and foremost.

“It brings me great joy, but it doesn’t leave me a lot of free time,” she says, laughing.

When not hanging out with her family, Lane works with Alex’s Lemonade Stand Foundation, a national childhood cancer research foundation.

“It’s something I’m really passionate about,” Lane shares. And her passion is a family affair. Lane works on generating awareness and fundraising, and her husband, Eric, serves on the board.

—Brian Wyman, Innovation Analytics

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Sticking to Your Word… and Your Work Skyelar Perkins Senior Director of Slot Operations, Choctaw Casinos & Resorts ver a 16-year career, Skyelar Perkins has risen through the ranks at the Choctaw Nation of Oklahoma’s Division of Commerce. Starting in 2002 as a parttime environmental services employee at the Choctaw Travel Plaza in Durant, Perkins worked his way from the security department to slot attendant in 2006. His work ethic and push for professional development have propelled him to corporate senior director of slot operations, a position all the more impressive considering the scale of operations.

Choctaw Casinos & Resorts operates nearly 10,000 machines consisting of numerous Class II and Class III manufacturers across 22 properties in southeastern Oklahoma. The flagship property Choctaw Casino & Resort-Durant offers a sophisticated level of hospitality reflected through the unique culture of the Choctaw Nation.

Perkins credits a large part of his success to the professional lessons his father taught him before he even graduated high school. Budgeting, commitment, hard work, and sticking to your word—Perkins may not have fully appreciated the import of such lessons as a child, but today he recognizes how “tremendously” they have paid off.

“I have continually found those lessons to hold true throughout my professional development and growth, finding myself regularly reciting the same lessons I received to those I am leading,” he says.

Perkins is passing those lessons on to the next generation of gaming employees as an adjunct instructor in Native American gaming management at Southeastern Oklahoma State University, even as he himself is committed “to never stop learning and growing.”

As he explains, “I am always looking for opportunities both formally and informally to add tools to my leadership bag, learn new approaches to business, or learn about new subjects. I always want to be able to help those

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I always want to be able to help those around me who are also looking to grow, and I hope this mindset will always keep me prepared to give them the guidance they need.” around me who are also looking to grow, and I hope this mindset will always keep me prepared to give them the guidance they need.”

In the gaming world, the trends he is following are legalization of sports books in new jurisdictions, esports, skill-based gaming and cashless gaming floors. He is always on the lookout for breakthrough games—the next “Wheel of Fortune”—that will attract new customers to the slot floor.

Perkins is also excited about the new 2,000seat esports stadium—the largest in the U.S.— being developed in Arlington, Texas. The Dallas-Fort Worth area is a key market for the Durant casino, and Perkins is exploring ways to leverage the Arlington stadium into new visitors to Durant.

On a personal basis, he strives to be the best role model possible for his 10-year-old son, Aidan, and 7-year-old daughter, Laysen, “both by lessons taught and how I act in my daily life. I also work to be the best partner I can be to my Player 2, Candace.”

Having married into the Choctaw Nation of Oklahoma, Perkins appreciates how the tribe treats him like a member.

“The tribe understands what family really represents, and it’s a lot more than just being blood. You see it directly reflected in everything they do as a company, living out the Chahta spirit of faith, family and culture.”

Perkins enjoys console gaming with his children and friends, his recent Saturdays filled with long sessions of Fortnight with his son. His favorite franchises are Halo and Zelda. He has also been playing the trumpet for 24 years and once toured in Europe in an orchestra.

Perkins has bachelor of science and master of science degrees from Southeastern Oklahoma State University, as well as several gaming certifications from the University of Nevada in Las Vegas and Reno.

—Tom Zitt, The Innovation Group

Outside In Adam Siefert Controller, Wightman Telecom

“

dam Siefert graduated from Brock University in Ontario in 2006 with a degree in sport management. So he got a job at a casino run by the Ontario Lottery & Gaming, an arm of the provincial government.

Go figure.

“I was looking for a job that I thought would be fun and found a lot of similarities between the sport industry and gaming,” he says.

“Both are 24/7 businesses that deal in entertainment.”

His affinity for poker sealed the deal.

Siefert spent more than 11 years with OLG and then Gateway Casinos, a private firm that took over the government gaming halls. But he recently left for Wightman Telecom, a move which may seem as incongruous as a sport management major handling operations at a casino.

“I was afforded the opportunity to learn a new industry and a new role as controller of a regional communications provider. But gaming gave me a solid foundation in a number of transferable skills. People management, budgeting and analysis and project management were among the reasons I was offered my position,” he says.

Over the final eight years of his casino career, Siefert, as operations manager, oversaw the gaming floor, from customer management to planning and budgeting to delivering player experiences. In 2014, he served as point man for gaming floor expansion.

“My main goal was to ensure the business continued to operate while preparing the new space,” says Siefert, who enjoys life with his wife and children when away from the workplace.

His final year involved transition of the property from OLG to Gateway, so that each area was ready for the changes.

Siefert gives credit to those who helped pave his way. His first mentor, Bryan Buchanan, also worked in operations during the early part of his career. “We learned a lot about slot floor management together. That became a comfort zone for me.”

Spencer Parazader came onboard as general manager four years after Siefert moved to operations.

“He recognized who I was and where my strengths were. Spencer put me in position to

A

“

Be comfortable with change.

And accept a 24/7 lifestyle.”

succeed and challenged me every day to be a little better than the day before,” says Siefert, who loves the occasional getaway from Canadian winters.

Linda McColl, the general manager when Siefert left the organization, encouraged him to push the boundaries.

Gaming, Siefert says, is at a crossroads. It needs to continue to attract current players but also bring in younger people, in part with interactive games.

“Making sure a share of the floor is always given to those products will help. I also think there will be a further push for sports betting as well as the opportunity for online gaming,” he says.

For those thinking of entering the gaming industry, a piece of advice: “Be comfortable with change. And accept a 24/7 lifestyle.”

Siefert’s plan for himself is to better understand the communications industry. “There are parallels with gaming in that the technology continues to evolve at a high rate,” he says. “What we do today is probably going to be different than what we do five years from now.”

— William Sokolic

AUGUST 2018 www.ggbmagazine.com

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: d e t s u B You’re

Esports—The Sequel

The comparisons between esports and MMA and DFS are apparent and the risks are similar, so beware, esports fans

By Richard Schuetz

I

n May 2015, I had an article published in GGB titled “You’re Busted: Fantasy Sports and the Need for Adult Supervision.” At the time this article was published, daily fantasy sports was getting big, and it was getting big fast. It was also operating in a space that was largely unregulated, and the DFS folks acted like it did not need to be regulated, and they developed a vocabulary and talking points to always make that point.

There were several topics I tried to address in that article. The first was that DFS wanted to avoid being regulated as much as possible, for regulation is a bummer. Regulation slows innovation and time to market, and often involves a tax scheme. Records need to be organized and maintained, strict compliance standards need to be followed, many regulations are stupid, and a there’s a whole array of additional issues that are often expensive and certainly not fun.

The second point of the article was that the DFS folks were attracting a ton of attention, much of it was not good, and they should therefore work to figure out a way to avoid or mitigate the draconian result of state-imposed regulation.

Esports is the “next big thing” for casinos, but will it understand that regulation is the path to respectability?

Self-Regulation One of my suggested solutions to keep state-imposed regulation at bay was self-regulation. By self-regulating, the DFS folks could work to mitigate state-imposed regulations, which are, as mentioned, a bummer. As an example of self-regulation, I used the Financial Industry Regulatory Authority (FINRA), which focuses on the securities industry.

A second option to self-regulation that was suggested was running toward regulation, and this is where an entity or the industry would seek out regulation, but in this process they would work to control the narrative to see that the regulations were appropriate and reasonable. The best example here is where Frank and Lorenzo Fertitta, of Station Casinos fame, purchased a company that provided mixed martial arts contests called the Ultimate Fighting Championship.

At the time of the acquisition, mixed martial arts was legal in one state, and Senator John McCain had damaged its brand by comparing the activity 52

Global Gaming Business AUGUST 2018

to human cock-fighting. The leadership of UFC set out to secure the seal of regulatory acceptability by educating lawmakers about the reality of the sport, and it soon became legal in 49 of the 50 states. This result was achieved by running toward regulation.

There was a fairly robust response to my DFS article, getting well over 5,000 hits on the GGB and GGB News websites, and many people contacted me directly, including leaders in the DFS space, an attorney general, and representatives from and around the sports leagues. They suggested that the article was meaningful, interesting and insightful, and then immediately ignored everything it recommended. That is, of course, until several different states began suggesting that DFS was breaking the law, and either banned the product, introduced regulation or initiated lawsuits. This ushered in a whole new era in the world of DFS. Once the legal and regulatory attacks began against DFS, there was an

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Daily fantasy sports (DFS) rejected even self-regulation, insisting their activity wasn’t gambling, but wound up being stifled by state-by-state oversight

enormous growth associated with the industry. Unfortunately, the groups that realized this growth were not the DFS providers, but rather the three Ls— lawyers, lobbyists and legislators—of each of the states that were either trying to outlaw the practice or regulate it. (I recently read an article that identified this group as the “regulatory parasites,” and damn, I wish I had come up with that term.)

As a result of the attacks, DFS was in for the fight of its life, and while it has survived the fight, the battles burned a ton of its cash, and the industry came out the other side a bit broken and scarred. Plus, I would argue the opportunity costs of this battle to DFS have been significant.

Challenge to Esports

betting on esports by people under 16 are not the type of press an industry wants in the U.S. When a number of Nobel laureates are challenging cryptocurrency, the coin of the realm of much of the value infrastructure of the industry, this is not good.

Headlines about loot boxes amounting to gambling also are not particularly cool. Add to this the fact that there are numerous websites allowing for unregulated betting on different esports events, skins betting, drug abuse and match-fixing—well, this is an industry that is going to start attracting much heightened attention by U.S. law enforcement, regulators and legislators, and this is not the type of attention the industry wants.

One of the realities that offers esports a level of protection from regulatory assault is the fact that few understand esports and its associated products, or at least few who fit the regulator/legislator/law enforcement demographic.

This will change, however. This lack of understanding is a knife that can cut two ways. While this lack of understanding can protect the industry, it can also become the Achilles heel of the industry, for once the regulators and lawmakers get nervous, they tend to

One of the realities that offers esports a level of protection from regulatory assault is the fact that few understand esports and its associated products, or at least few who fit the regulator/legislator/law enforcement demographic.

This will change, however.

Well, there is another industry that is getting big, is getting big quickly, and is also attracting an ever-increasing share of attention, and this is esports, especially when it touches upon the borders of gambling in the U.S. And while some of this attention is good for the development of the industry, a bunch of this attention isn’t. News reports addressing a high rate of

AUGUST 2018 www.ggbmagazine.com

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The Ultimate Fighting Championship series took lots of heat from public officials until the owners— the Fertitta brothers, who also owned Station Casinos—embraced regulation

overreact, or to speak more clearly, they tend to overregulate.

Why should the people entering the esports industry even care?

Some should not. There will be a great deal of low-hanging fruit for entrepreneurs and wannabe entrepreneurs to come in and snatch a handful of cash and move on. Others, however, will want a sustainable presence in the U.S., and regrettably, the only way to ensure a sustainable industry is through something that resembles regulation.

Regulation as Protection Back in the 1970s, I spent several years working on a Ph.D. dissertation on the origins of the Nevada Gaming Control Board (NGCB), concentrating on the period from 1945 to 1966. One of the things that I came to believe was that the NGCB was largely founded to legitimize the gaming industry and therefore protect it from threats on its future.

The gaming industry was generally characterized as involving sketchy people and practices during much of the period of my study, and if this image were to continue, the ability of Nevada to offer legal gambling would be challenged on many different levels. By instituting a regulatory infrastructure, this threat was mitigated. In other words, regulation is a total pain, but it is a pill that often needs to be swallowed if an industry wants to be sustainable in the U.S. A huge challenge with the evolving esports industry is that it is something of a Gordian knot in its complexity, with many moving parts, and different pieces of its whole can attract regulatory and legal attention from different regulatory and legal entities, and some of these are national in scope, and those around the gambling piece are state by state.

No industry wants 50 distinct sets of rules to deal with, and yet this is where we stand with gambling today in the U.S. During the old iPoker and iGaming debates in California, the foreign operators would stop by my office at the Gambling Commission, and would mention how stupid our state-by-state regulatory system was. And this was a group made up of those who had generally launched their businesses in other parts of the world and had not been overly conscious of borders.

When they made the point about how stupid our system was, I could only agree. All of this whining and complaining, however, would accomplish little, for the system was the system, and changing it was near impossible. If you want to dance in one of the United States, you do not

get to pick your regulatory partner.

Moreover, many aspects of the infrastructure surrounding esports can potentially fall outside of gaming and into other regulatory domains, and it is always problematic when multiple agencies claim oversight responsibility for an industry.

A Voice for Esports Where does this leave us? Esports is an industry that is in the process of becoming. I believe the road will be rocky for esports betting in the U.S. because it is an enigma, and this reality will continue, because the technology of the industry will be evolving at a much faster rate than the laws and regulations that surround it.

If it is to achieve sustainability as a gambling product, esports will need a voice, and I have not yet been able to discern that voice. This voice will need to have a moral and ethical compass, and be willing to engage and educate the many publics upon which it will depend—be it the general public, the legislators or the regulators. This voice also needs to be loud and clear, for it is going to have to be heard above the din surrounding some of the bad actors and bad-actor stories. It is also going to have to overcome a great deal of ignorance and fear.

I joined the gambling industry in 1972 as a dealer at Bill Harrah’s property in Reno, and have essentially been in the industry ever since. You cannot imagine the changes I have seen in every dimension of the industry and its regulation. One of my observations is that every major transition in the industry had a voice leading that transition. This includes people like Steve Wynn, William Harrah, Bob Faiss, Tim Wapato and others.

Esports, if it plans to become a sustainable part of the gambling product, needs that voice. I will be listening.

The technology of the industry will be evolving at a much faster rate than the laws and regulations that surround it.

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Richard Schuetz started dealing blackjack for Bill Harrah 46 years ago, and has traveled the world as a casino executive, educator and regulator. He is sincerely appreciative of the help he received from his friends and colleagues throughout the gaming world in developing this article, understanding that any and all errors are his own.

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FRANKLY SPEAKING

by Frank Legato

Statues, Stamps and Tyrants

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or the fact it will have to shell over a portion of the $70 million profit it made from the Lady Liberty Las Vegas stamp to the sculptor responsible for the image. Attorneys for the federal government had argued that the image on the stamp was too similar to the real statue for Davidson to claim copyright, but the judge agreed that Davidson’s Lady Liberty was sexier.

Evidently, attempts by the federal government to raise the skirt on the original statue and apply makeup before the case came to trial were unsuccessful.

Speaking of snafus involving iconic casino statues, one of the coolest features of the new Hard Rock Atlantic City is the giant Les Paul guitar in front of the porte cochere. According to NJ.com, the operator had to make a last-minute change to the sculpture—the rhythm/treble pickup selector switch on the guitar was misspelled. It read “RHYTHEM.” The giant typo was corrected by removing the extra vinyl letter at the last minute.

They shouldn’t feel too bad. I’m a professional writer and editor, and “rhythm” is one of those words I’ve always had trouble spelling. I also have had problems with “accommodate,” “Caribbean” and “floccinaucinihilipilification.”

I once even misspelled the word “misspelled.”

Finally, it says here that Las Vegas Sands Chairman Sheldon Adelson is considering creating a casino resort in North Korea, now that we’re all warm-and-fuzzy pals with dictator Kim Jong Un. Speaking at a recent event in Jerusalem, Adelson, who was a soldier in the Korean War (and, I think, the Punic Wars between Rome and Carthage), noted the recent historic summit between Kim and President Donald Trump, commenting that he would like to return to Korea not to fight, but to “open up his business.”

So now, I’m looking forward to the grand opening of the Sands Pyongyang Casino, Resort & Spa, complete with the 38th Parallel Café, the Supreme Commander Buffet, the Bad Haircut Salon and the Little Rocket Man Lounge.

I’m guessing there will be a statue of Kim out front. Call Robert Davidson. I’m sure there are plenty of statues of the dictator around the country he can use as a model.

I can’t wait to see how Davidson succeeds in making the Kim statue sultry and sexy.

Be careful not to misspell his name, though. In that neighborhood, it could be a fatal mistake.

VIC TOR RINAL DO

A

nyone familiar with classic Hollywood movies remembers how the U.S. Postal Service, then called the Post Office, was heralded as an “efficient, well-run organization” in the 1947 film Miracle on 34th Street, with the judge agreeing that the agency’s delivery of Santa Claus mail to Kris Kringle, on trial for lunacy, proved that he was the real Santa.

Well, here in the 21st century, using that argument might land poor Kris in the funny farm.

In 2011, the Postal Service was charged with creating its second “Forever Stamp,” in the popular series of postage that remains valid regardless of increases in stamp prices. The image chosen was the Statue of Liberty, and postal bureaucrats combed through photo images, deciding on what they thought was the best-looking depiction of Lady Liberty. The stamp was issued, and sales were brisk for the first few months.

That is, until someone pointed out that the image on the stamp was not of the colossal copper monument in New York Harbor. It was a picture of the faux Statue of Liberty at the center of the fake Manhattan skyline at the New York-New York casino hotel on the Las Vegas Strip. The stamp was pulled, but not before the sculptor of the Las Vegas statue, Robert Davidson, sued the Postal Service for copyright infringement.

Last month, a federal judge sided with Davidson, ordering the Postal Service to pay the sculptor $3.5 million in damages for copyright infringement. (I’m guessing the price of stamps is about to go up.) The judge agreed with Davidson’s attorneys that the Vegas statue is “unmistakably different” from the real statue—it’s more “fresh-faced,” “sultry” and even “sexier” than the original, they said.

I love this story, if only as a testament to casino-hotel architecture and design. Some postal employee—now unemployed, presumably—glanced at an image of a Vegas Strip façade and mistook it for the real thing. I’m wondering if there are any French tourist brochures with a picture of the Eiffel Tower at Paris Las Vegas, or if visitors to Venice are ever surprised there’s no Banana Republic next to the canal.

(Is there? If not, there should be.)

The U.S. Postal Service has not yet commented on the decision,

G&Tfullpg.2018_2.qxp_Layout 1 5/14/18 4:35 PM Page 1

19th Annual

Nominations are open for the gaming industry’s most prestigious awards.

The GGB Gaming & Technology Awards are the casino industry’s most prestigious awards for technology, products and services. The honors are designed to recognize and encourage innovation and technology in the rapidly changing casino industry. Winners will be announced in the November 2018 issue of Global Gaming Business magazine and awards will be presented at Global Gaming Expo (G2E), October 9-11, 2018 in Las Vegas.

DEADLINE: August 24, 2018

• Best Consumer-Service Technology • Best Productivity-Enhancement Technology • Best Slot Product • Best Table-Game Product or Innovation • Best Interactive Product

Nominations are now open in the following 4 categories:

All Non-Slot Product nominations will also automatically be nominated for the “Progressive Products” feature in GGB’s 2018 G2E Preview magazine. Slot products will be featured in the October issue of GGB, distributed at G2E.

www.ggbmagazine.com For details and to enter online visit:

Lauren Byrge • Sales Director LaurenB@ggbmagazine.com 702-248-1565 ext. 227

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NEW GAME REVIEW

by Frank Legato

Agent: Magnifying Jackpots Konami Gaming

T

his new game is featured on Konami’s oversized Concerto Crescent cabinet, with its 43-inch curved vertical monitor, as well as the Concerto Stack, which has a 43-inch flat monitor.

The base game is a five-reel, nine-line video slot including several innovative primary-game and bonus features, as well as a four-level stand-alone progressive jackpot. The primary game features Konami’s “Strike Zone” feature, which randomly chooses a special area on the reel array in which special features including wild symbols, multipliers and mini-wheel-spin bonuses are activated. The larger the bet, the wider the Strike Zone, beginning with two reel positions at minimum bet and rising to a three-by-four box in the center of the screen at max bet.

If the spin results in a full screen of wild symbols, the player is awarded an extra 2,000 credits times the bet, in addition to all the associated line pays.

In another feature encouraging higher wagers, the top Supreme Jackpot is activated with a bet of 200 credits.

Also in the base game, each reel contains a number of positions that are randomly replaced with one of the three lower jackpot symbols, Maxi, Major or Mini, before the spin is initiated. Five Maxi, Major or Mini symbols on a pay line returns the corresponding jackpot, and multiple jackpots can be won on the same spin.

The Supreme Jackpot is awarded when five of any of the like jackpot symbols appear on the first reel with the second through fifth reels covered

with wild symbols.

The award resets at 25,000 times the denomination, or $2,500 in the penny version of the game.

There also is a free-game bonus. Three, four or five street lamp symbols trigger eight, 12 or 20 free games, respectively. According to the manufacturer, the chance at jackpots increases during the free spins.

Manufacturer: Konami Gaming Platform: KP3 + Format: Five-reel, nine-line video slot Denomination: .01, .02, .05, .10, .25, .50, 1.00, 2.00, 5.00 Max Bet: 200 Top Award: Progressive; resets at 25,000 times denomination Hit Frequency: 26% Theoretical Hold: 4%-18%

Glitter Jewels

Ainsworth Game Technology

T

his game is designed to take full advantage of the real estate offered by Ainsworth’s premium A640 cabinet—particularly, its 42-inch vertical flat-screen monitor. The main feature in the game fills that space with three separate reel arrays in a potentially lucrative free-spin bonus.

The base game is a highly volatile five-reel video slot, available in 50-line configuration at the penny and 2-cent denominations and with 25 lines in nickel and 10-cent denominations. There are two top progressive jackpots, and three static bonus awards that come into play during the jackpot bonus event.

The main game event is the Stacked Up Feature triggered by three or more scattered Stacked Up symbols. This triggers 10 free games, during which any wild symbol transforms all symbols on that reel into wilds.

If three Stacked Up symbols appear during the feature, a second reel array appears stacked above the primary reels, and five free games are added to the remainder of the free spins. All remaining Stacked Up free games are played out on both reel sets, unless one of the spins lands another three Stacked Up symbols. In this case, a third stacked reel array appears, and remaining spins—plus two additional free games—are played out on all three reel sets.

When diamond symbols appear in all positons on the first two reels,

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it triggers a Jackpot Spin, with the two stacked-diamond reels remaining in place. If no other reels fill with diamonds on the spin, the Mini Bonus of $5 is awarded. If the spin results in diamonds in every position on the first three reels, the Minor Bonus of $10 is awarded. The $40 Maxi Bonus is triggered with four diamond-filled reels on the Jackpot Spin.

The progressives can be awarded either on a primary-game spin or Jackpot Spin. Diamonds in all positions on all reels return the Major Jackpot, resetting at $500. “Black Diamond” symbols in all positions on the middle reel with diamonds covering all other reels return the top progressive, resetting at $5,000.

Manufacturer: Ainsworth Game Technology Platform: A640 Format: Five-reel, 25- or 50-line video slot Denomination: .01, .02, .05, .10 Max Bet: 500 Top Award: Progressive; resets at $5,000 Hit Frequency: Approximately 50% Theoretical Hold: 4%-15%

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Many Fortunes Incredible Technologies

W

ith this game, Incredible Technologies moves into the Asian-style video slot genre on the imposing Infinity V55 cabinet, featuring a 55-inch vertical 4K monitor, used to maximum effect with an expanding reels feature.

During the primary five-reel, 40-line game, players can unlock wild symbols, multipliers and other bonus features by raising their line bet, encouraging maximum bets that range from 50 to 300 credits.

At any bet level, players are eligible for a random “Double Reel Fortune” feature, which triggers the expanding reel feature, turning the 40 lines of the main game into 80. A bet of double the minimum unlocks one additional feature—Wild Stack Fortune, which randomly drops stacked wilds onto the reels.

A 3X bet unlocks the third feature—Triple Reels Fortune, creating three 40-line reel sets. The fourth feature— Wild Rain Fortune, available at 4X bet—randomly

releases a shower of wild symbols onto the reels, capable of creating huge wins. Max bet unlocks all five Fortunes, including the Mystery Fortune where hidden symbols fall onto the reels and are revealed to create anticipation-building wins.

Three traditional yin-yang scatter symbols trigger a free game bonus event, awarding up to 15 free spins. After the first four free spins on the main reel set, a second set is added to provide 80 lines for the next four spins. Any remaining free spins occur on a triple reel set display, making the final spins available with 120 pay lines.

Manufacturer: Incredible Technologies Platform: Infinity V55 Format: Five-reel, 40-line video slot Denomination: .01, .02, .05, .10, .25, .50, 1.00, 2.00 Max Bet: 50, 100, 150, 200, 300 Top Award: 58,320 credits Hit Frequency: Approximately 50% Theoretical Hold: 5.8%-14.81%

Treasures of Olympus International Game Technology

I

GT’s latest entry in the TRUE 3D series of slots is offered on the AXXIS cabinet, with its oversized curved vertical monitor. The monitor in this case displays five progressive jackpots, the top prize—the Zeus Progressive—resetting at 10,000 credits.

TRUE 3D has been one of IGT’s most popular game series, its 3D effect unmatched in any other slot machines—or other media, for that matter. During game play, the technology appears to send symbols and other game icons of the five-reel, 60-line reel array jutting out toward the player in an engaging effect.

Primary-game mystery events include the Electric Wilds feature, in which Icarus flies on the screen and electrifies the reels to award up to six random wilds; and the Icarus Wilds Feature, in which Icarus appears on screen and shoots his magic arrows at the reels to award up to six random wilds.

Treasure chest symbols on reels one, three and five trigger the Treasures of Olympus Free Games bonus, which features three different reel symbols that activate different awards. During the bonus, Icarus moves from one reel to another awarding symbols as they appear below him. If Icarus makes it across all five reels without being hit by a fireball, players then enter the Treasure Chest Pick Bonus, where they can win up to 1,000 credits.

Manufacturer: International Game Technology Platform: AXXIS TRUE 3D Format: Five-reel, 60-line video slot Denominations: .01 optimized; operator selectable Max Bet: 240, 400, 800 Top Award: Progressive; resets at 10,000 credits Hit Frequency: 19% Theoretical Hold: 4%-14%

AUGUST 2018 www.ggbmagazine.com

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GOODS&SERVICES UNIVERSAL TO REALIGN TO PREVENT OKADA FROM RETURNING, LAUNCH U.S. EQUIPMENT COMPANY

J

apanese slot-machine and pachinko manufacturer Universal Entertainment Corporation is planning what it calls an “organizational realignment” that will prevent former chairman Kazuo Okada, who was voted off the board of directors last fall, to return in any capacity that involves casino-related business.

Kazuo Okada In a press statement issued in June, Universal indicated that it had established a new company, Limited Liability Company ABC, which is set to become the parent company of its three primary casino-related businesses—Tiger Resort Asia Limited, Aruze USA, Inc. and a new entity called UE Technologies Inc. Universal also unveiled its plans to begin “the full-fledged manufacture and sales of casino-related devices” including slot machines, electronic table games, player tracking systems and bill validators, all through the new U.S. subsidiary UE Technologies.

“In acquiring and maintaining licenses for casino-related businesses in the various states of (the U.S.), members of management and shareholders must undergo strict screenings of suitability conducted by the gaming commission serving as the regulatory authorities,” the statement said.

“In cases where unsuitable individuals are present among management or shareholders, there is a risk of being unable to acquire a license to begin with, or a license that is already held being invalidated.

“Given that, as part of preparations to secure the structure to execute business at the casino-related businesses … without being affected by a shareholder of the company’s parent who has been cited as violating governance and compliance (Okada) even should this unsuitable individual assume the post of director at the company or its parent, the company has decided to conduct an intra-group organizational realignment for those casino-related businesses.”

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Global Gaming Business AUGUST 2018

ABC. The company lists WonderGraph Corp. as operating its casino resort business.

In May, Universal revealed that it had also decided to file criminal complaints and civil lawsuits against Okada and Aruze Gaming America, the slot supplier he owns, seeking compensation of damages for alleged patent infringement.

Okada is still under investigation by Nevada regulators for his alleged involvement in fraud activities for personal benefit that negatively impacted Universal. He has denied all charges.

GAMBLIT CEO: SKILL GAMES WILL SUCCEED

S

kill-based slot machines have underwhelmed operators in their initial phase, with players showing limited interest in a style of game that had been touted as the next big thing in gaming. However, the head of one of the main companies producing skill games remains confident in their viability.

In an interview last Gamblit CEO month with the Las Vegas Eric Meyerhofer Review-Journal, Eric Meyerhofer, CEO of Gamblit Gaming, said the best days of skill-based gaming are still ahead. “You don’t hit the switch and it’s an overnight success,’’ Meyerhofer said. “It doesn’t mean skill-based has failed or is dead.”

Meyerhofer said Gamblit is expanding its footprint this year, on the heels of raising an additional $25 million from investors. He added that the company is using player research to tweak the games, intended for a younger demographic. “We are eating our own dog food before we can ask others to do it,” he said, adding that the company’s engineers are working to perfect a math model that will monetize games on which skill plays a large role in winning.

“I think over time, skill-based games could work if they get the math right,” Meyerhofer said.

ARISTOCRAT INSTALLS LARGEST WEST-COAST ‘LIGHTNING LINK LOUNGE’

G

aming supplier Aristocrat Technologies announced that California’s Table Mountain Casino has opened the West Coast’s largest “Lightning Link Lounge,” an attraction dedicated exclusively to Aristocrat’s Lightning Link games, which the company calls the “world’s most popular

slot video games.”

The new lounge consists of 49 Lightning Link games, linked to each other, and located in a designated area near the popular High Limit Table Games area at Table Mountain Casino.

Lightning Link is a set of linked games, all with progressive jackpots that boast player-selectable multi-denominations. Players can select pennies, 2 cents, nickels or dimes.

“We are so excited to bring the largest Lightning Link Lounge on the West Coast to our Table Mountain Casino players,” said Rob Goslin, president and general manager of Table Mountain Casino. “Our guests are elated to have their own Lightning Link Lounge where they can experience the exciting fun and action that Lightning Link games offer. For players who love jackpots, we invite them to come up and experience all that the new Table Mountain Casino Lightning Link Lounge has to offer.”

AGS ACQUIRES GAMEIOM TECHNOLOGIES

G

aming supplier AGS announced it has acquired Gameiom Technologies Limited, a U.K.- and Gibraltar-licensed online gaming aggregator and content provider for real-money gaming (RMG) and sports-betting partners.

The transaction bolsters AGS’ diverse product portfolio with the ability to offer iGaming operators some of the highest-performing game content in the marketplace through Gameiom’s remote game server. Under the terms of the transaction, AGS has acquired Gameiom for $5 million in cash and will integrate Gameiom to serve as the launchpad for the company’s iGaming division, which will become part of its AGS Interactive business segment.

“In assessing RMG providers, AGS felt it was important to pursue a pure content aggregation and distribution platform as opposed to a directto-consumer iGaming operation,” said David Lopez, president and CEO of AGS. “Gameiom fits that bill perfectly—their platform enables AGS to distribute our industry-leading game con-

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tent into many markets, including the U.S., establishing a real-money gaming solution designed to generate revenue for AGS and our partners.

“Gameiom’s RGS platform is flexible, scalable, robust and open, capable of delivering hundreds of games and sports-betting integration to operators quickly and reliably. More importantly, Gameiom’s values align with our playbook—they are passionate, team-oriented, aspire to win, and a bit obsessed with gaming, just like us.”

Matt Reback, executive vice president of AGS, added, “This acquisition significantly expands the channels for our industry-leading game content to Gameiom’s key partners, which include BetVictor, Ladbrokes Coral and William Hill, to name a few.

Gameiom knows operators and game developers want to see their content go live as quickly as possible through a reliable integration on a robust platform, and that focus on speed and quality is why they have experienced rapid success over the past 18 months. Acquiring this team and their RMG technology further diversifies and enhances our interactive product suite.”

With offices and licenses in the U.K. and Gibraltar, Gameiom currently distributes content from more than 15 game suppliers including Ainsworth, Gaming Realms, Reflex Gaming and

1X2 Network, providing access to more than 100 live games and a library of more than 1,000 additional games. As part of the acquisition, AGS will retain and employ the Gameiom team—including key executives Stuart Carr, Tony Ellis, Gary Hardy and John Carr—ensuring a smooth transition for customers as AGS expands and grows the current product in the marketplace.

SG DIGITAL COMPLETES OPENBET GLI TESTING, PROVIDES SPORTS BOOK SOLUTION IN BC

S

cientific Games Corporation announced that its SG Digital division has successfully completed pre-compliance testing of its OpenBet Sportsbook Retail Platform against the GLI-33: Event Wagering Systems draft standard and Mississippi Gaming Commission’s proposed sports and race pool regulation.

These standards offer starting points for clear guidance regarding betting integrity and a way to move forward responsibly in the wake of the U.S. Supreme Court’s recent ruling striking down the Professional and Amateur Sports Protection Act (PASPA).

Ian Hughes, GLI’s vice president of global services

The First Pass PreCompliance Evaluation confirmed that SG Digital’s retail point-of-sale terminal and administrative back-end systems that support OpenBet operate in line with the proposed regulatory expectations of GLI. This evaluation sets the stage for a full review of the OpenBet functionality.

“Evaluation against draft GLI-33 demonstrates that the software and systems conform to a broad set of well-recognized and accepted requirements for compliance suitability in a variety of markets,” said Ian Hughes, GLI’s vice president of global services. “The evaluation of the SG Digital OpenBet platform against GLI-33 by GLI provides SG Digital, regulators and its customers independent evaluation to its suitability.”

Keith O’Loughlin, SVP sportsbook at SG Digital, added, “As legalized sports betting spreads across the states, we’re taking every step to provide a seamless transition for our partners. Speed is of the essence, and this pre-compliance review positions us as a partner of choice for operators seeking

UNLV Annual Fund

Flexible.

Personal.

Vital.

For more information, please contact the Annual Giving team at (702) 895-2838 or visit us at unlv.edu/foundation.

“After a decade of living in Las Vegas and supporting the Rebels, the UNLV community has made not only our family, but our company feel as close, if not closer, than our own alma maters. The size of this community and UNLV’s reach will always hold a special place in our hearts.”

Justin Micatrotto President, MRG Marketing & Management, Inc President’s Corporate Council Platinum

AUGUST 2018 www.ggbmagazine.com

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industry-leading turnkey sports book solutions across land-based, online and mobile channels.”

Meanwhile, the SG Digital division has signed a contract with the British Columbia Lottery Corporation (BCLC) to provide the operator with expanded sports-book solutions over a multi-year period.

With BCLC having already utilized the OpenBet sportsbook for several years, the agreement includes a full upgrade of BCLC’s digital sports betting solutions, providing them with the latest iteration of the market-leading OpenBet sportsbook portfolio, including improvements to live betting, a streamlined cash-out experience, and additional promotional capabilities. The upgrades are targeted for launch by the end of 2018.

The upgrade agreement underpins the strength of the longstanding relationship between Scientific Games and BCLC. In addition to digital gaming and sports-book solutions, the company has provided casino gaming and lottery systems to BCLC for many years.

“Together, SG Digital and BCLC will drive the Canadian market to a new sports betting era,” said O’Loughlin. “We’re thrilled to continue our partnership with a longstanding and respected operator in the online space. Our OpenBet products are a perfect fit for BCLC, and we look forward to our continued partnership.”

INNOVATORS WILL BRAVE THE ‘SHARKS’ AT G2E 2018

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his year’s Global Gaming Expo, October 8-11 in Las Vegas, is featuring something entirely new—a chance for gaming industry startups and students to pitch their ideas and innovations in a setting based on the popular TV show Shark Tank.

G2E, as the annual Las Vegas mega-trade show and conference is known, will host one of the stars of the ABC/CNBC series, Fubu founder and CEO Daymond John, to serve as a judge along with Cindy Eckert, founder of Pink Ceiling and CEO of Sprout, as contestants present their creations before a live audience at the G2E Innovation Incubator on October 11.

The two will select a winner, the “Shark’s Choice,” who will receive $10,000 and a complimentary 10-foot-by-10-foot booth to showcase their product at the 2019 show.

A panel of gaming industry experts will select four finalists to present their concepts to John and Eckert, where they’ll submit to a fast-paced question and answer session as the two business leaders look to explore each of the opportunities.

The finalists will compete in four categories: gaming floor innovation; hospitality and resort developments; solving/streamlining regulatory chal-

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Global Gaming Business AUGUST 2018

‘Shark’ Daymond John

lenges; and greater efficiencies for operators/suppliers.

There also will be a second-place “Customer’s Choice” winner, selected by the audience, who also will receive complimentary exhibit space at the 2019 show. Six additional runners-up, chosen by the panel of experts, will be able to present their ideas throughout the day on October 11 at the AGA’s Innovation Lab on the main show floor.

NRT ACQUIRES CASINO ATM PORTFOLIO

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RT Technologies Inc. has acquired the gaming ATM assets of U.S. Bank National Association (USB), including some 1,500 high-volume casino ATMs and self-service devices that dispense more than $5 billion annually across nearly 300 gaming properties in the U.S. NRT is a global technology leader of next-generation payment systems, specialized financial/marketing self-serve kiosks, and digital and mobile experiences for the gaming industry. Through this acquisition, NRT now supports processing on ATMs and TITO Redemption Units (TRUs) in casinos across the U.S. NRT is now the largest ATM processor in the North American casino market, providing services to more than 750 gaming clients, including the top 25 largest global gaming operators.

In partnership with Diebold Nixdorf, NRT will be making upgrades to the acquired ATM fleet with new state-of-the-art ATMs that will not only support traditional ATM and cash advance functions, but also provide mobile engagement through Sightline Play+ and cardless ATM features. NRT and Diebold Nixdorf have an existing partnership with the world’s largest mobility provider, Kony Inc., which will enable a unified and highly personalized mobile guest experience across NRT’s growing portfolio of gaming ATM and TRU devices.

As part of the transaction, NRT has secured an expanded vault cash facility ensuring high cash availability to meet the rigorous cash withdrawal demands of NRT’s gaming operator customers.

“Acquiring this ATM portfolio fits within our strategy of leading in both the cash and cashless payment verticals for casinos,” said John Dominelli, NRT founder and president. “As part of this transaction, we are pleased to welcome key members of the U.S. Bank team to the NRT family.”

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GAMING & HOSPITALITY

EDUCATION • SERIES • 2018 Presented by

miss the most dynamic, informative and innovative ✓Don’t conference program in the gaming industry. Attend in person or via webinar. The UNLV Gaming & Hospitality Education Series encourages interactivity between the presenters and the attendees and pledges to provide an experience that will improve your job experience. enroll in the UnLV Gaming & hospitality education series The final three sessions of 2018 will bring together cutting edge data, unbeatable networking and a unique educational experience.

• October 25: Esports & Sports Betting • November 20: The Perils and Possibilities of AML and Payment Processing • December 13: Player Development & Casino Marketing

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For more information on speakers and to register, visit UnLVGhes.com.

A M S APPLIED MANAGEMENT STRATEGIES

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CUTTING EDGE

by Frank Legato

Power of the Platform Product: Revenue Strategy Platform Manufacturer: Duetto

he fragmented nature of casino technology is clearly holding back innovation. To improve the entire casino experience—from online reward redemption to post-stay marketing—casinos must embrace an open and agnostic technology infrastructure with data at its core.

Duetto’s Revenue Strategy Platform and four cloud applications address the industry’s complexity, providing powerful solutions that increase booking conversion, guest loyalty and revenue.

The platform can connect several systems a casino uses and centralize functions like data analysis, which give operators more visibility into the business for things like performance reporting and budgeting. Duetto’s data and communications platform powers its four applications: GameChanger, ScoreBoard, BlockBuster and PlayMaker.

GameChanger allows casinos to optimize every booking by independently yielding all segments, channels and room types in real time with new and better insights into demand.

ScoreBoard allows casinos to forecast and analyze performance across

T

the entire company and deliver actionable insights to key stakeholders in real time.

BlockBuster allows casinos to unify the sales and revenue teams, optimize group business to move beyond hotel room blocks, and begin yielding business dynamically.

PlayMaker allows casinos to increase e-commerce conversion by experimenting with custom room type sort orders, packages, offers and more merchandising content for both known and unknown customers.

Together, the Revenue Strategy Platform allows guest and transactional data to be centralized and stored in a secure environment, providing a quick path to the cloud and a unified view of data from multiple systems.

Duetto will ingest data from all a resort’s systems to make split-second analysis and share the right pricing, merchandising and content information at the right times during the booking path, paving the way for a modern e-commerce strategy.

For more information, visit duetto.com.

Electronic Gaming Evolution Product: Video King Network Manufacturer: Video King

t the forefront of electronic gaming, Video King has developed a number of new products, capitalizing on the latest technology, enhancing revenues and heightening player enjoyment.

An industry leader, Video King has launched a universal platform that allows others to deploy their Class II and Class III gaming products onto the supplier’s tablets. “Manufacturers have already approached us with new gaming concepts, and we are excited about the scope of our new product line,” says Tim Stuart, Video King president and CEO. Game offerings include PokerNanza, a Class II game, which puts a whole, new spin on video poker, featuring favorites from Jacks or Better to Double Double Bonus in four denominations.

Designed for multi-site, linked play and tournaments, PokerNanza is a twoperson, standard-sequence bingo game, which solely determines the game-ending pattern. In addition to bingo prizes, players vie for interim prizes including video poker and progressives.

A

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Global Gaming Business AUGUST 2018

BowlaNanza, Video King’s newest animated Class II game, spans the world of bingo and bowling, as players rack up points within a story line involving up-and-coming bowlers, villainous characters, rolling balls and tumbling pins— spliced between free cards and interactive bonuses.

BowlaNanza is based on QuickShot, a multicard game played with 24 pre-called numbers and scalable pay table, that raises and lowers based on players’ wagers.

To enhance the gaming experience, Video King created Freedom Play, a wireless wall board to display bingo, as well as advertising and multimedia messaging.

Using digital technology, Video King servers can send signals to display virtually anything—much like an electronic board at a football stadium.

For information, contact Tim Stuart at 800-635-9912, ext. 7777, on mobile at 402-578-1475, text-only at 402-575-8387 or via email at tstuart@vkge.com.

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PEOPLE FOXWOODS CEO RAPPAPORT DEAD AT 65

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fixture of Las Vegas gaming for four decades, Foxwoods Casino Resort CEO Felix Felix Rappaport Rappaport died unexpectedly last month at Foxwoods in Connecticut. He was 65.

His body was discovered in the suite at Foxwoods where he lived part of the time. He also had a home in Las Vegas.

No cause of death had been determined as of press time, although no foul play is expected in the death of Rappaport, whose career spanned MGM Resorts International, where he was an executive at eight properties, culminating in becoming Foxwoods’ chief executive officer in 2014, in charge of one of the world’s largest casino and resort properties.

He began his career in the hospitality industry at the Sands Casino Hotel in Atlantic City in 1980. Before entering the gaming industry, Rappaport had worked as a hotel manager in Philadelphia of the Radisson Suite Hotel and with Hershey Entertainment and Resort Co. The sheer scale in the change of venue was remarkable: in Philadelphia he ran hotels that had 500 rooms. At the Mirage, at that time the largest hotel-casino on the Strip, he ran a hotel with 3,000 rooms.

In 2014 at Foxwoods, Rappaport had been senior vice president and chief operating officer when he was appointed to succeed Scott Butera, who left to become commissioner of the Arena Football League.

At Foxwoods, Rappaport had employed a strategy of diversification by adding many non-gaming attractions and amenities to the resort to make it more competitive in an era of increasing competitiveness in the industry, a trend that has been felt particularly at the Indian casinos of Connecticut.

Rodney Butler, chairman of the Mashantucket Pequot Tribal Nation, issued this statement: “On behalf of the entire tribal council, Foxwoods’ management team and staff, we extend our deepest sympathy to Felix’s family.”

“We are saddened by the news of the passing of our former colleague and friend, Felix Rappaport,” said MGM Chairman and CEO Jim Murren in a statement. “Felix was a member of the MGM Resorts family for more than two decades, and is remembered fondly by many. Our condolences and prayers go out to his family at this difficult time.”

SINATRA OUT AT WYNN

BUTERA WILL HEAD MGM INTERACTIVE GAMING

K

M

im Sinatra is the latest Wynn Resorts executive to depart in the wake of the sex scandal that forced Steve Wynn, Wynn Resorts chairman and founder, to resign and sell his interest in the company. Sinatra stepped down as executive vice presiKim Sinatra dent and general counsel for the company, which informed the Securities and Exchange Commission that Sinatra has “ceased to serve” in those positions in a one-sentence revelation.

Sinatra had been elevated to the No. 2 position in the company following Wynn’s departure, second only to CEO Matt Maddox. But her ascendancy was always shadowed by the company’s failure to reveal the multimillion-dollar settlement made by Wynn Resorts (via a third corporate entity) with a woman who claimed to have been harassed by the casino magnate to the Massachusetts Gaming Commission, as part of the company’s licensing investigation for its Boston Harbor casino. As general counsel, this settlement would have fallen under Sinatra’s oversight.

Sinatra has denied that she knew anything about a rape allegation against Wynn, as alleged by his former wife, Elaine Wynn.

JULIANO JOINS DEL LAGO

N

ew York’s del Lago Resort and Casino has brought in industry veteran Mark Juliano to try to right the ship at the struggling Finger Lakes property.

But ownership continues to hit rough waters in Albany in its efforts to secure tax breaks to keep the place afloat.

Juliano brings to the task 30 years of experience, Mark Juliano most recently as president of Las Vegas Sands’ Sands Bethlehem in eastern Pennsylvania, that state’s table games revenue leader with a strong focus on Asian play from across the Northeast.

Prior to joining Sands Bethlehem, Juliano served as a senior vice president and chief casino officer for LVS’ Singapore mega-resort, Marina Bay Sands.

He has also held executive positions at Caesars Palace in Las Vegas and at Trump Entertainment Resorts in Atlantic City.

GM Resorts International announced Scott Butera has been named presiScott Butera dent of interactive gaming, including sports betting and skill-based gaming. Butera is the former commissioner of the Arena Football League and the former chief executive officer of Foxwoods Casino Resort. In his new position, Butera will focus on MGM Resorts’ sports betting strategy and expanding operations to new U.S. markets.

MGM Chief Operating Officer Corey Sanders said, “Skill-based gaming is expanding exponentially, and Scott’s experience will help us to dominate the field. As an industry leader in sports betting and cutting-edge interactive gaming offerings, MGM Resorts is well-positioned to bring our decades of experience and well-earned reputation to new markets throughout the country. Scott will play a key role as we continue to expand nationwide.”

Butera led Mashantucket Pequot-owned Foxwoods from 2010 to 2014 before leaving to join the AFL, where he was replaced as commissioner this spring, prior to the start of the four-team league’s current season. At Foxwoods, Butera negotiated a massive debt restructuring for the tribe. Previously he led restructuring at Las Vegas-based Tropicana Entertainment and at Trump Hotels & Casino Resorts. Prior to that he was an investment banker for 15 years.

GGB

August 2018 Index of Advertisers

AGA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .37 AGEM . . . . . . . . . . . . . . . . . . . . . . . . . .25, 55 Agilysys . . . . . . . . . . . . . . . . . . . . . . . . . . .19 AGS . . . . . . . . . . . . . . . . . . . . . . . . . . . .3, 27 Aristocrat . . . . . . . . . . . . . . . . . . . . . . . . . . .5 Del Lago . . . . . . . . . . . . . . . . . . . . . . . . . . .43 Everi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13 Fantini Research . . . . . . . . . . . . . . . . . . . . .62 G & T Awards . . . . . . . . . . . . . . . . . . . . . . .57 G2E . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45 Greenberg Traurig Law . . . . . . . . . . . . . . .31 IGT . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7, 33 Incredible Technologies . . . . . . . . . . . . . . .35 Interblock . . . . . . . . . . . . . . . . . . . . . . . . . .29 JCM Global . . . . . . . . . . . . . . . . . . . . . .9, 26 Joseph Eve . . . . . . . . . . . . . . . . . . . . . . . . .34 Konami . . . . . . . . . . . . . . . . . .68 (back cover) MGT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21 Osage Casino . . . . . . . . . . . . . . . . . . . . . . .41 RPM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12 Scientific Games . . . . . . . . . . . . . . . . . . . . .11 Subway . . . . . . . . . . . . . . . . . . . . . . . . . . . .67 TCSJohnHuxley . . . . . . . . . . . . . . . . . . . . . .2 UNLV Foundation . . . . . . . . . . . . . . . . . . . .61

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CASINO COMMUNICATIONS

Q

&A

David Rebuck Director, New Jersey Division of Gaming Enforcement

D

ave Rebuck has been the director of New Jersey’s Division of Gaming Enforcement since 2011. Appointed by then-Governor Chris Christie to streamline the state’s cumbersome regulatory structure, Rebuck responded by working closely with industry executives to remove unnecessary regulations. He oversaw the introduction of legal online gaming in 2013, the closing of five Atlantic City casinos in 2014 and most recently the opening of two replacement casinos and the legalization of sports betting. He spoke with GGB Publisher Roger Gros at his offices in Atlantic City in July. To hear a full podcast of this interview, visit GGBMagazine.com.

GGB: It’s a credit to you that New Jersey Governor Phil Murphy has kept you on since he took office in January. What is your relationship with his administration?

Rebuck: Governor Murphy hit the ground

running and is very much involved with casino gaming and sports betting in particular. Attorney General (Gurbir) Grewal, my immediate boss, has been a great asset for us in helping us to perform the duties required of us. It’s been quite a hectic six months since the governor took over, and so far we have a great relationship with him, his staff and the attorney general.

How hectic has it been in the last six months?

We knew Hard Rock was on target to open this summer, so if it had just been that, we would have had no problem completing that investigation. And with the resolution of the sports betting case before the Supreme Court, we knew something was going to happen. But the total victory meant we had to get up and running quickly. And finally in January, just hours before the deadline, Revel

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was bought by Bruce Deifik and his team, so we had to add that to your list.

June was especially busy with sports books openings at Monmouth racetrack and Borgata, and later at Ocean Resort. And with the two new casinos opening on June 28, the pressure was on.

How worried are you that the increasing supply of gaming in Atlantic City will force other casinos to close?

Before the Taj closed in 2015, we had an eight-casino market that was fairly stable. So with the opening of two new casinos we go to a nine-casino market, and the question is whether we can sustain that. And I don’t know. But I will say this: I really don’t care. I hope it does. But I will say this to anyone who comes into this market. If you cannot compete in this market, you have no business running a casino. We have a very low tax rate, second only to Nevada. We have the best regulations in the country when it comes to overseeing and working with the industry—these are not oppressive and onerous and costly like many other jurisdictions.

There are now more diverse gaming products available here than in any state in the country—sports betting, full-blown iGaming, any product you can think of in traditional gaming—it’s here. And in non-gaming amenities, we’re second only to Nevada. We’ll never catch Las Vegas, but we’re a strong second.

Sports betting in New Jersey got off to a good start with two racetracks and two casinos running sports books as we speak.

Any idea why the other casinos haven’t jumped on board yet?

The casinos are being very deliberate and conservative in their rollout. They’re taking their time to build the perfect offering, and most of them have opportunities in other states, as

well, and have to take a multi-state approach, as opposed to the racetracks, which will not.

We’ve had a number of heart-to-heart discussions with casino operators and told them I need them to be more aggressive. I think they’ve gotten my message and are picking up the pace now.

I think we’re on the right track. And I’m very optimistic now that New Jersey will be a leader in this area. By the time we hit the end of the fourth quarter of 2019, I want New Jersey to be in a position to be the leader in the country. That’s a tall order because Nevada is on top now, but I think we have a shot.

Do you think the market is that big?

Let’s consider where we are now. We’re only doing ticket business using business practices like it’s been done in Nevada since the 1970s.

We have the potential for 14 licenses, with three skins each. So we’re not very robust. In fact, we’re rudimentary.

But we’re off to a stunning start. Once we get all the licenses up and running, mobile apps working at full speed, you’re going to see a huge increase in play once we get (further) into the 21st century.

What about the growth in iGaming? Are there too many sites now?

It continues. For months, we’ve been posting double-digit increases and it was the same in June. I don’t know how long this is going to continue—there has to be a ceiling somewhere—but for now we’re enjoying it. And remember, right now, it’s just New Jersey. So when other states come on, we’re going to continue to grow.

And no, there are not too many sites. And competition is good. If you can’t compete, you fall by the wayside. We encourage innovation and experimentation, so come to New Jersey and give it your best shot.

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