Global Gaming Business, August 2020 by Global Gaming Business

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Global Gaming Business Magazine

NON-GAMING ATTRACTIONS DEALERS KEEP OWN TOKES DIGITAL SIGNAGE SOUTHERN CASINOS

August 2020 • Vol. 19 • No. 8 • $10

Lottery LOSERS

Why sports betting isn’t working for some states

HAND IN

HAND

GLI helps regulators, suppliers and operators navigate the future of gaming

The Show Must Go On

How and when entertainment will return to casinos Association of Gaming Equipment Manufacturers

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CONTENTS

Vol. 19 • No. 8

august

Global Gaming Business Magazine

20 COVER STORY

COLUMNS

GLI Certified

10 AGA Betting the Second Half

Gaming Laboratories International has not slowed its services to the gaming industry during the global pandemic, adapting to new operating conditions to continue testing new slot and system technologies, as well as a wealth of new technology designed to aid in a safe return to business for GLI’s partners in manufacturing, operations and regulation.

Casey Clark

12 Fantini’s Finance Timing Is Everything Frank Fantini

28 Making My Point Coming Into Their Own Roger Snow

By Frank Legato On the Cover: James Maida, President and CEO, Gaming Laboratories International

34 Operations The Time Has Come Mike May

FEATURES

DEPARTMENTS

14 Waiting for Showtime The world of casino entertainment is still very much on pause, as performers and agents wait out the pandemic and devise new ways to play to smaller audiences.

The Agenda

By the Numbers

By Bill Sokolic

5 Questions

24 South Rising

13 AGEM

The Southern United States remains one of the nation’s final frontiers for the expansion of the casino industry.

38 Frankly Speaking 43 Emerging Leaders With Kambi’s Max Meltzer, San Manuel Casino’s Allen Schultz, RubinBrown’s Brandon Loeschner, and Scientific Games’ Teri Chan Palomaki

By Brendan Bussmann

30 Bringing Amenities Back Non-gaming amenities are trailing the casino floor in awakening from the coronavirus slumber. Here are seven tips for a safe and profitable return to business.

46 New Game Review 48 Goods & Services 53 People

By Marjorie Preston

54 Casino Communications

36 Lotteries and Sports

40 Signs of the Times

State lotteries in the U.S. are discovering the pitfalls and benefits of operating sports betting in their jurisdictions.

Signage manufacturers and developers have responded to the nascent postCovid-19 operational atmosphere with an expanded range of products.

By Roger Gros

By Dave Bontempo

With Andrew Burke, Chief Executive Officer, Bluberi

AUGUST 2020 www.ggbmagazine.com

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THE AGENDA

Meeting of the Minds By Roger Gros, Publisher

s if this year couldn’t get any stranger, when the American Gaming Association announced last month that G2E 2020 would be canceled, I have to admit that reality finally hit home about how unusual this time has truly become. I have been attending the largest gaming trade show every fall for the last 35 years, whether it was International Gaming Business Exposition (IGBE), World Gaming Congress (WGC) or Global Gaming Expo (G2E). Back in the IGBE days, the industry was small—maybe around 2,500 attendees, and most of us knew each other. Last year’s G2E had something in the neighborhood of 30,000 attendee, and I only knew a few of them. So it will indeed be strange to be forgoing what has become an annual tradition. There really was no choice. AGA President and CEO Bill Miller told me that there were many factors that influenced his decision, but of course, health and safety were at the top of the list. And if those were the only factors, they would have been enough, so it was the correct decision at the correct time. Some of the things I’ll miss about G2E start with the people. Even though I don’t know most of the 30,000 people who walk by our booth, I do see many folks I’ve become friends with through the years—and some who have followed me since IGBE in the mid ’80s. I won’t miss the roughly 10 miles I walked every day running from meeting to meeting, session to session, across a crowded show floor. I’ll miss the in-person podcasts that I would do during much of the time at the show. Lots of the podcasts would be with people I don’t know very well who fly in from all over the world to attend G2E. I’ll miss the excitement of the ribbon-cutting, the opportunity to hear from the leaders of our industry and the new products that always bring the “wow” factor to the show floor. I won’t miss lugging the booth equipment out at the end of the show and waiting in traffic to exit the parking garage. So, there has always been the good and bad of trade shows and conferences, and G2E was no exception. At GGB, we can’t let the trade show season go by, however, without recognizing the factors that we like. During Covid-19, we’ve thought outside the box by producing daily updates to the crisis. You can subscribe for free at GGBNews.com by using the coupon code

Global Gaming Business AUGUST 2020

Vol. 19 • No. 8 • AUGUST 2020 Roger Gros, Publisher | rgros@ggbmagazine.com twitter: @GlobalGamingBiz Frank Legato, Editor | flegato@ggbmagazine.com twitter: @FranklySpeakn Marjorie Preston, Managing Editor mpreston@ggbmagazine.com Monica Cooley, Art Director mcooley@ggbmagazine.com

GGB180. We think it’s our service to the industry to keep everyone abreast of how the industry is dealing with the crisis so we can come out of it together as we went into it. And losing G2E is painful, but we’re going to attempt to bring the best of G2E to you with podcasts, webinars and products that would ordinarily be highlighted at the show. Instead of doing our G2E Preview publication this year, we’ve reimagined it as Progressive Products Preview (P3). This publication will feature the non-slot products and services that are always a big part of G2E. Whether it’s systems, platforms, bonusing options, hotel products, analytical services, payment processing, consulting groups, architects, designers, furniture makers or any other product or service, you can read about it in P3. And online you can actually see the product perform in videos or slide shows linked to the articles. And as always, our GGB October issue will include the new games that would debut at G2E. The manufacturers did not stop developing new games simply because the casinos were closed. So this is the place to see all the new games from the major slot manufacturers. And like P3 non-slot products, our partners in the October GGB will be able to show you how the games play by links to videos and other interactive media. One of the highlights of G2E for me has always been the Emerging Leaders program, where we recognize employees and executives of the industry who are under 40 years of age. It’s such a joy to see these young people with their enthusiasm and talent showcased at the show. We’re still going to hold this program, but it will be virtual this year instead. Along with our partners at The Innovation Group, nominations for the Emerging Leaders will remain open through mid-August. Visit ggbmagazine.com/40-under-40-nominations to honor your young talent. And the GGB Podcasts I do at G2E will not go away either. In fact, we’ve already boosted our podcast schedule. At least one of our daily GGB News updates have been podcasts every week in addition to the one in the weekly GGB News e-magazine that comes out every week. So while G2E might be absent for a year, the news and information we have always provided will not. Simply visit GGBMagazine.com for all the content that you’d find at G2E. We are in this together, and we are there for you.

Terri Brady, Sales & Marketing Director tbrady@ggbmagazine.com Becky Kingman-Gros, Chief Operating Officer bkingros@ggbmagazine.com Jessica Walker, Operations Manager jwalker@ggbmagazine.com Lisa Johnson, Communications Advisor lisa@lisajohnsoncommunications.com twitter: @LisaJohnsonPR Columnists Casey Clark | Frank Fantini Mike May | Roger Snow Contributing Editors Dave Bontempo @bontempomedia | Brendan Bussmann Marie Casias | Bill Sokolic @downbeachfilm __________________

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

• 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

• Michael Soll, President, The Innovation Group

• 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 2020 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

TalkinG ‘BOuT My GEnERaTiOn

Generational Differences and Opportunities

asinos are now actively courting four generations of customers. Some are players, others are non-gaming customers. KPMG, in conjunction with the International Gaming Institute (IGI) at the University of Nevada, Las Vegas, recently released a study called “Casinos Play Their Next Hand,” which contains research on how these different generations will respond to the casinos’ marketing messages. Obviously, health and safety are paramount with each generation, but how they respond can be completely different. Surprisingly, baby boomers have the lowest gambling budget and the most basic of concerns once they return. The report outlines the challenges of reopening and the ramp-up of the economy, and recommends steps casino can take to make their future brighter. To download a copy of the report, visit advisory.kpmg.us/articles/2020/casinos-play-their-next-hand.html.

Job-Related

veryone knows the tourism and hospitality industries were hardest hit by the Covid-19 pandemic. When people are locked down and stop traveling, not only transportation suffers, but workers at hotels, attractions, resorts, casinos and other leisure activities suffer. The pain extended into June, with almost 30 percent of hospitality workers unemployed. As casinos begin to reopen, some of their employees are called back but not all of them. Experts suggest only 60 percent of the workers at a casino on average were recalled. So in the June numbers, provided by the Bureau of Labor Statistics, the chart at the bottom, provided by RCG Economics, shows the sharp drop in Nevada jobs (represented by the purple line) versus all other economic downturns experienced by the state. It’s still a long climb back. Nevada still has the highest level of unemployment of any state in the nation.

Global Gaming Business

AUGUST 2020

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NUTSHELL

“They

5Questions Rick Arpin

Said It”

“Right now, our Covid-safe casinos are all dressed up, but our loyal and patient customers have nowhere to go.” —John O’Reilly, CEO, Rank Group, speaking against the continued closure of U.K. casinos

Managing Partner, Las Vegas, KPMG Arpin knows what he’s talking about. After 16 years with MGM Resorts, followed by a stint with Rthe ickpayment processor NRT Technologies, Arpin has the experience needed to direct his KPMG clients in right direction. Arpin believes the coronavirus recovery will be very nuanced and dependent on individual markets. In Las Vegas, Arpin says the recovery of gaming will be framed by the recovery of the airline, tourism and conventions industries as well. He spoke with GGB Publisher Roger Gros at the GGB offices in Las Vegas in June. A full podcast of this interview is available at GGBMagazine.com.

1 2 3 4

GGB: What are some of the things operators are concerned about and how does KPMG advise them? Rick Arpin: The main concern, on the human resources side, is how we can make sure that our employees

are protected, which includes things like temperature checks, understanding the symptoms, and how do we track their whereabouts should they become infected? We have high-risk populations that we have to treat differently when they come back to work. We look at it on a risk basis. Something as simple as scheduling teaches us how we can segregate our population so that this doesn’t spread, even years from now, when we might have a bad flu season. There are lots of applications here to control an outbreak. How do you think the Las Vegas casinos have responded so far?

I think the jury’s still out, to be frank. The governor, health officials and the Gaming Control Board have said they would closely monitor how it’s being handled. I think the additional requirement that everyone, including guests, wear masks is indicative of that oversight. The results need to be used to make decisions going forward. But I think that they’re throwing everything at the wall here to make sure the employees and the customers feel safe. We’ve seen this in the past, with security tightening up after an incident with a visible presence. This is no different. We want visible measures, to make sure the customers feel safe. Would the current trend of smoking bans in casinos be part of those visible measures?

Certainly. We know not everyone agrees with it, but now is an opportune time to do it. This period will also give us a good chance to rethink how we operate. Las Vegas was poised to break out in 2020 with new properties, a new football stadium, an NFL team locating here and more. The NFL Draft was supposed to be held in Vegas, but of course was presented virtually instead. How should Las Vegas approach the future, since this is all so disappointing?

When you take some of the emotion out of it, we have to consider this as just a pause in what was a very good strategy from the visitor-tourism perspective. Sports and entertainment as a big element of a diversified long-term strategy makes sense, and we should continue to pursue those goals. People have different predications on when we’ll be back to “normal”—three months, six months, 18 months, three years. No one knows what that will be. And let’s not forget, people will still want to be entertained, people still want to see sports, people are still going to want to have meetings and trade shows. Will the industry look different? Do we have some changes to make? Of course, but this is temporary and we’ll come back stronger than ever with those changes. We just have to think carefully of what that future will look like. How do we look at the changes we have to make?

At KPMG, we’re looking at previous events and how we responded to them, and whether those changes were temporary or permanent. When you consider 9/11, we now have the TSA (Transportation Security Administration), which is clearly permanent, but that continues to change. We now have pre-check, so we can get through faster. So I think we’ll see the same thing in gaming. Can they sustain extra staff for cleaning? Possibly, but I believe we’ll find ways to do that in a more automated fashion. So we’ll see new ways of doing things, whether it’s cleaning or social distancing. You’ll see a lot of innovation and technology in these areas.

Global Gaming Business AUGUST 2020

CALENDAR EDITOR’S NOTE: Every conference and trade show set for this year has either been canceled, rescheduled or modified. Below are their new dates and/or status. REIMAGINED August 11: 21st Conference on Gambling and Addiction. Culturally Adapting Evidence-based Treatments in Partnership with American Indians. Virtual event. Produced by the International Center for Responsible Gaming. For more information, visit ICRG.org. CANCELED August 11-13: Australasian Gaming Expo, ICC Sydney. Produced by the Gaming Technologies Association (GTA). For more information, visit AustGamingExpo.com. CANCELED September 11-12: NCLGS Summer Meeting 2020, Intercontinental Magnificent Mile, Chicago. Produced by the National Council of Legislators From Gaming States. For more information, visit NCLGS.org. REIMAGINED September 15: 21st Conference on Gambling and Addiction. Gaming Taxes and State Responsible Gambling Appropriations: Where Does the Money Go? Virtual event. Produced by the International Center for Responsible Gaming. For more information, visit ICRG.org. RESCHEDULED September 22-23: ASEAN Gaming Summit 2020, Shangri La BGC, Manila. Produced by Asia Gaming Brief. For more information, visit aseangaming.com. REIMAGINED September 29: 21st Conference on Gambling and Addiction. Recognizing Stigma Embedded in Diagnostic Criteria for Substance Use Disorders. Virtual event. Produced by the International Center for Responsible Gaming. For more information, visit ICRG.org. CANCELED October 5-8: Global Gaming Expo, Sands Expo Center, Las Vegas. Produced by American Gaming Association and Reed Exhibitions. For more information, visit GlobalGamingExpo.com. REIMAGINED October 21: 21st Conference on Gambling and Addiction. Addictive Behavior Relapse: Challenges in the Treatment of Gambling Disorder and How Mindfulness May be Helpful in Breaking the Relapse Cycle. Virtual event. Produced by the International Center for Responsible Gaming. For more information, visit ICRG.org. RESCHEDULED October 26-27: East Coast Gaming Congress, Harrah’s Resort, Atlantic City. Produced by Spectrum Gaming, Cooper Levenson, the Friedmutter Group and Sysco. For more information, visit EastCoastGamingCongress.com. November 9-11: Sports Betting USA & Investment Summit, New York City. Produced by Clarion Gaming. For more information, visit SportsBettingUSAConference.com.

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AMERICAN GAMING ASSOCIATION

Betting the Second Half As sports return to the global landscape, how can legal wagering dominate? By Casey Clark

Editor’s note: The column was written in early July.

ith MLB, MLS, NASCAR, NBA, NHL and PGA all finally back in play, the sports calendar has gone from nearly empty to as busy as ever. Between the influx in sports and early signs of pent-up demand for sports betting, bookmakers are expecting a busy summer. New American Gaming Association (AGA) research shows that average spending with illegal bookies fell 25 percent in states with legal sports betting in 2019. Many of those bettors are moving their action online: legal online and mobile betting spend increased 12 percent, while illegal offshore operators saw a 3 percent increase in states with legal sports betting. Bettors overwhelmingly prefer legal operators, with 73 percent saying it’s important to only bet through legal providers. Despite this, 52 percent of sports bettors participated in the illegal market in 2019. The research found that illegal sports betting is driven largely by confusion about online operators. More than half (55 percent) of consumers who placed most of their wagers with illegal operators believed they were betting legally. The Covid-19 pandemic has potentially exacerbated the confusion about the legal and illegal markets. While legal operators were limited to offering niche sports like Belarussian hockey and Swedish handball, offshore bookmakers gained publicity by taking bets on everything from politics to the weather, shark migration patterns to whether your friends’ marriage will survive the pandemic. While these wagers may seem benign to the average consumer, offshore sportsbooks endanger bettors by providing no responsible gaming measures, guaranteed payouts or safeguards for financial data. Of concern to all of us—especially our partners in federal law en-

Global Gaming Business AUGUST 2020

forcement—illegal gaming operations often perpetuate dangers outside sports betting by funding money laundering, the drug trade, even human trafficking. What’s more, these bad actors pay nothing in the way of taxes, nor do they create jobs in our communities. Both are keys to recovery from the impacts of Covid-19. The AGA is committed to the legal market’s continued growth and supporting the industry’s recovery following the pandemic. Our efforts to put illegal bookies and operators out of business are focused on three key areas:

Research found that illegal sports betting is driven largely by confusion about online operators. More than half (55 percent) of consumers who placed most of their wagers with illegal operators believed they were betting legally. • Coordinating with law enforcement: Our longstanding relationship with federal and state law enforcement agencies continues to prove effective in exposing and cracking down on these unregulated businesses and the associated crimes they perpetuate. • Promoting policies that allow legal operators to compete: Providing customer convenience: Consumers prefer to wager through legal channels when they are available. Accessibility is important. That’s why policymakers should allow customers to use intrastate mobile to make wagers

as well as modern payment options that they’re accustomed to using in their daily lives. Avoid costly statutory mandates:

Sports betting is a low-margin business, so it’s critical for states to establish reasonable tax rates and licensing fees. Imposing league fees and/or official data mandates also harms the competitiveness of legal operators, who are forced to pay additional costs that are not borne by the illegal market. Eliminating excise taxes: Burdensome and ineffective federal excise and head taxes unnecessarily put legal sports betting operators at a competitive disadvantage with illegal operators. The AGA is working with the Congressional Gaming Caucus to advocate for eliminating these taxes, which will allow legal operators to offer competitive odds and free up capital to invest in operations and employees. • Educating the public: The AGA is committed to educating media and bettors on the distinction between the legal and illegal market. We send corrections on at least a weekly basis to reporters and editors reporting on illegal (and often preposterous) odds and are regularly calling out this irresponsible reporting. Through our “Have a Game Plan, Bet Responsibly” public service campaign, we’re focused on educating bettors on the core principles of responsible sports wagering, including where and how to bet legally. We also make it easy by offering a comprehensive list of legal operators on the AmericanGaming.org interactive sports betting map. The AGA cannot do this alone. It will take everyone involved in the sports betting ecosystem to stamp out the illegal market—which is even more important as the industry begins its economic recovery. Casey Clark is senior vice president, strategic communications at the American Gaming Association.

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FANTINI’S FINANCE

Timing Is Everything Investors who got in at the right time, make good money; those that didn’t, not so much By Frank Fantini

here were two ways to make money on gaming stocks in the first half of the year: Buy technology stocks related to sports betting. Have the courage to buy during the Covid-19 panic of mid-March. If you didn’t do either of those, you lost money. Nearly every gaming company rebounded from March lows, but nearly all are well below where they began the year. Fantini’s North American Index, for example, fell 29.8 percent through June 30. Fantini’s Global Index plunged 31.8 percent. Even online stocks, so often touted as stay-at-home plays, declined. Fantini’s Interactive Index did better than its brick-and-mortar cousins but still slipped 2.4 percent. But there were winners—big winners—if you picked the right stay-at-homes. One place to look was Sweden. Kambi, a Stockholm-listed provider of online sports betting platforms, jumped 52 percent. Fellow Stockholm-listee Evolution Gaming, which provides live-dealer games to gambling websites, leaped 92 percent. The U.S. had two even bigger winners. GAN, another platform provider, jumped 90 percent after its May 5 IPO. And if you were fortunate enough to get in on the IPO at $8.50, you have more than tripled your money. Draft-Kings, the daily fantasy sports operator now in the all-out gambling world, also began trading this spring. It’s up over 90 percent since its April 23 debut. Investor infatuation with sports betting helped a couple conventional companies beat the virus, as it were. London-listed Flutter rose 12 percent in the first half. Penn National, which excited investors by purchasing a big chunk of sports media company BarStool Sports, jumped 17 percent. Otherwise it has been red everywhere. But not since mid-March. For example, if you bought Wynn on January 2, you have lost 48 percent. But if you bought

Global Gaming Business AUGUST 2020

Jurisdiction Reopening Average Daily Capacity Limitation Wynn at its March low, you gained Date Compared to 2019 73 percent by mid-year. The story is the same throughout gaming. MGM Arkansas May 18 74.9 percent 33 percent Resorts, down 50 percent for the year Kansas May 22 96.6 50 but up 285 percent since mid-March. Louisiana May 18 77.5 25 Some examples are even more ex- Mississippi May 21 106.4 50 treme. Take Penn National again. The South Dakota May 8 114.2 None stock was $3.75 at its March low and $30.54 on June 30. That’s an eightHowever, this represents some pent-up demand bagger in just over three months. that should wane in following weeks, and a lack of Ditto suppliers. IGT down 41 percent for the many competing forms of entertainment. year but up 250 percent from mid-March. Little It also doesn’t include non-gaming revenues AGS down 72 percent through June and up nearly lost as amenities have not reopened, or as they op400 percent since its low. erate with restrictions even more stringent than And those are fairly typical examples. Again, the those imposed on casino floors. North American Index fell 29.8 percent through On the other hand, casino-deprived players are June, but that’s a big comeback from mid-March, definitely going online. Here are some other numwhen it was down 62 percent. bers taken from Fantini’s National Revenue Report The roller coaster was even steeper if you bought for May: gaming stocks in early to mid-February when many iGaming revenue nearly tripled to $142.9 milof them hit all-time and 52-week highs. lion in the absence of many land-based gaming opSo what does the second tions and a lack of sports to bet on. half of the year hold? iGaming revenue: As Dr. Fauci might say, May April March the virus will tell us. Delaware $1.135 million $856,000 $514,000 If the recent explosion in New Jersey $85.941 $63.841 million $64.821 million Covid cases continues, or if we Pennsylvania $55.838 $43.067 $12.351 suffer a significant second wave in the fall, stocks could reThe steady progression of month-to-month visit the March debacle. growth is pretty obvious. The questions are whether Even if we muddle through, there’s the reality of growth will stick with brick-and-mortar casinos now a high jobless rate and lost income that could mute open and whether enough states will legalize iGamconsumer spending into next year. In such a sceing to have a big impact on gaming companies, nario, gaming stocks today are mostly about where whether land-based or digital. they should be, and could be range-bound into That still leaves open the question of what the 2021. Another reality might sink in: casinos are not balance of the year will look like economically, in rebounding as robustly as initially, according to anthe gaming industry and in investor response. ecdotal reports. From here, we’ll bet on muddling through to There were five states in which casinos were op2021 and then valuing stocks on an expected reerating during May. Look at these gaming revenue turn to normality in 2022. But we won’t bet much. examples from May, when the first significant jurisdictions reopened: On the surface, the numbers are Frank Fantini is the editor and publisher of Fantini’s Gaming Report. For a free 30-day trial subscription email encouraging with average daily revenues close to or subscriptions@fantiniresearch.com. even ahead of last year.

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AGEMupdate AGEM MEMBER PROFILE SCA Gaming, based in Dallas,

Texas, is the industry leader in promotional prize coverage since 1996. SCA offers comprehensive marketing solutions to power casino promotions around the world. SCA Gamingâ&#x20AC;&#x2122;s portfolio includes loyalty and mobile gamification platforms, digital kiosk promotions, interactive game shows for the casino floor and special events, prize coverage up to $10 million and a comprehensive tool kit designed to engage audiences and increase market share. To date, SCA has paid more than $212 million in prize coverage over 120,000 promotional events. SCA has recently introduced Touchless Kiosk Solutions and games, online/mobile season-long football Pick The Winners and sports prediction contests. On Saturday, June 20, Casino Miami awarded $50,000 to a patron participating in SCAâ&#x20AC;&#x2122;s Press For Cash digital promotion. The Press For Cash promotion was live each Friday and Saturday in June with contestants qualifying via ticketed drawings. SCA Gaming covered the grand prize offering Casino Miami a risk-free solution. According to officials at Casino Miami, â&#x20AC;&#x153;The $50,000 Press For Cash promotion was very successful for Casino Miami. On every promotional day, guests lined up at the players club to claim the bonus entries they earned for that nightâ&#x20AC;&#x2122;s drawing. This past weekend we had a guest hit the winning combination resulting in a $50,000 grand prize payout. Guests watching were wildly cheering the winner knowing that indeed the $50,000 grand prize is achievable.â&#x20AC;? SCA Gaming offers a combination of fresh thinking and proven performance that enriches the casino/patron relationship with trusted programs driven by innovation. For more information, contact Linda Gordon at 877-860-2516 or linda.gordon@scagaming.com.

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.

AGEM Board of Directors Actions for July 2020 â&#x20AC;˘ AGEM has been working for some time on proposed updates that address language in both Regulations 1 and 14 in Nevada. With support from the Nevada Gaming Control Board (GCB), the Nevada Gaming Commission convened at the end of June to review the proposed amendments and subsequently approved all the changes supported by AGEM. These updates include the GCBâ&#x20AC;&#x2122;s Technology Division accepting different forms of technology related to source code media and improvements to the New Innovation Beta (NIB) program designed to fast-track products to the gaming floor and allow suppliers to accelerate new games and concepts. The commission also approved updated cashless gaming language that may possibly be the most impactful for the industry, especially at this time when the idea of handling cash is less attractive. AGEM submitted a letter of support for all of these changes and Commission Acting Chairman John Moran cited AGEMâ&#x20AC;&#x2122;s support during the hearing. â&#x20AC;˘ In July 2019, AGEM initially contacted the Pennsylvania Gaming Control Board (PGCB) flagging that certain game types allowed in most gaming jurisdictions were not allowed in Pennsylvania due to its regulatory language. AGEM subsequently reviewed the wording and submitted recommendations for changes last December. Since that time and as the industry has been navigating the pandemic, AGEM Executive Director Marcus Prater has been pushing for updates in support of the suppliers overall. PGCB Executive Director Kevin Oâ&#x20AC;&#x2122;Toole responded prior to the AGEM monthly meeting in July and outlined his case that most games are getting approved for the land-based, online and VGT markets in Pennsylvania, but that he remains open to continuing the dialogue with AGEM and its members. â&#x20AC;˘ Nevada Industry Excellence (NIE) has recently launched a website aimed at marrying up Nevada gaming employees who have been furloughed or laid off with vacancies in other industries. In addition, NIE is working to obtain federal funding for vital retraining programs. The NevadaWorksTogether.com website is providing much-needed resources in these difficult times. At the national level, the National Association of Manufacturers (NAM), of which AGEM is a member, has launched TheManufacturingInstitute.org as a new resource as well. â&#x20AC;˘ AGEM Director of Responsible Gaming Connie Jones highlighted at the July meeting the possibility of proposed cuts to funding for problem gaming in Nevada. Due to the current situation, there is an estimated $1.2 billion shortfall for the fiscal year 2021, which represents a quarter of the general-fund appropriations. The Department of Health and Human Services makes up approximately one-third of the state budget that provides funding for problem gaming. However, due to the shortfall, the department is proposing up to a 75 percent cut to funding for problem gambling. No final decisions have been made as of mid-July, but there is a real concern this vital funding will be cut and will create the perception that the worldâ&#x20AC;&#x2122;s gaming capital is not providing enough for this most fundamental support. AGEM, meanwhile, approved its annual $50,000 contribution to the Dr. Robert Hunter International Problem Gambling Center in Las Vegas.

Forthcoming Events â&#x20AC;˘ The G2E Las Vegas physical event was officially cancelled recently. However, organizer Reed Exhibitions is working on a virtual event offering and will be announcing details soon as to when this will be and what the program will look like. â&#x20AC;˘ Nominations for the AGEM Memorial Awards honoring Jens Halle and Peter Mead have been opened with a deadline for submissions of August 15. The winners will be announced in October. Visit AGEM.org for more information.

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The AGEM Index increased by 4.53 points in June 2020 to 407.41 points, a 1.1 percent gain from May 2020. Six of the 13 AGEM Index companies reported stock price increases amid ongoing uncertainty about the global economy and the effects pandemic. The 0.9 of the Covid-19 stock price for Aristocrat Leisure Limited (ALL) decreased percent the U.S. dollar. In turn, this accounted rise in the due to the Australian dollar strengthening against for a 5.06-point AGEM Index. Crane Co. (CR) experienced a 6.7 percent stock price jump, leading to an index contribution of 3.93 points. All three major U.S. stock indices increased as the Dow Jones Industrial Average grew by 1.8 percent and the grew by 1.7 percent. the grew by 6 percent month. S&P 500 Additionally, NASDAQ on the

AUGUST 2020 www.ggbmagazine.com

p. 14 Entertainment:Layout 1 7/15/20 3:08 PM Page 14

Showrooms and lounges will come back, but when? How long before people are comfortable sitting in an audience? Entertainment experts give their best guesses By Bill Sokolic

That’s Entertainment! H

arry Styles has a date to sing at MGM Grand Garden Arena on September 4. That is, September 4, 2021. The heartthrob former member of One Direction got stood up for his September 5, 2020 date due to Covid-19. He is one of dozens of jilted performers whose shows were either canceled or postponed in Las Vegas by the pandemic. And not just in Las Vegas. From California to Connecticut to Michigan, shows at casinos large and small got the ax after the mid-March closure of casino resorts all over the world. “I had to reschedule 485 shows. I felt like an air traffic controller with hundreds of planes circling and trying to find a runway open to land them,” says Thomas L. Cantone, president, sports & entertainment for Mohegan Gaming & Entertainment. Veteran Las Vegas entertainment manager Clinton Billups handles three artists in residence: Alain Nu: The Man Who Knows; Motown Extreme Review; and the World Famous Ink Spots. He also manages April Brucker, who premiered a one-woman show in February in preparation for a residency of her own to begin in late March. All four shows now await word to return to the stage. Four Winds Casino Resort and Hotel in New Buffalo, Michigan canceled July performances by Styx, Smokey Robinson, even Mike Tyson, and August

dates for the Beach Boys and Damon Wayans. Melissa Etheridge postponed her September show, but Little River Band remains on the books for September 4 at the Silver Creek Event Center. For now, at least.

Singing On Key Indeed, entertainment may be the last of the casino offerings to get back to business as usual. It’s certainly not because the performers are running scared. “Artists are not reluctant; they are just like us in terms of doing what is right for their fans, road production teams and the venues they play at,” says Mark Birtha, president of Hard Rock Hotel & Casino Sacramento at Fire Mountain. “We all place a high value on the safety and health conditions of our venues, and they want to be proud that we are putting on

“The return of the live entertainment industry will signal the final cure that ends this pandemic.” —Thomas L. Cantone, President, Sports & Entertainment, Mohegan Gaming & Entertainment

Global Gaming Business AUGUST 2020

The Arena at Mohegan Sun seats over 10,000 people at capacity, but how would it work with reduced capacity?

p. 14 Entertainment:Layout 1 7/15/20 3:08 PM Page 15

“If we do these things, we should find ourselves at the forefront of the live entertainment industry’s comeback, and set up for both short- and long-term success.” —Keith Sheldon, President of Entertainment, Hard Rock International and Seminole Gaming, on why casinos must be innovative when entertainment comes back

a show that meets those expectations.” Casino properties are taking the first baby steps in returning to entertainment. Mohegan Sun in Connecticut ran its first live performances in 96 days at the end of June, in the Roadhouse & Comix venues, with social distancing in place, Cantone says. Other venues hope to open later this summer, he says. The Petrossian Bar at Bellagio employs a pianist again, while the Whiskey Down in MGM Grand also features live performers, according to Scott Ghertner, a spokesman for MGM Resorts International. But showrooms and arenas tied to casino properties remain dark. What will it take to bring back casino entertainment with more than just a lounge act? For one thing, it will require enough precautions. In Nevada, Phase 2 of the reopening plan—extended through July—restricts public and private gatherings to no more than 50 people and prohibits the opening of nightclubs and day clubs, live sporting event venues and performance venues with live audiences. “Unfortunately, we won’t know what will be permitted in Phase 3 until Governor (Steve) Sisolak announces it, so we don’t have a timeline for any of the currently prohibited events to return,” says Maria Phelan, communications manager for the Las Vegas Convention and Visitors Authority. Certainly a Phase 3 would likely require some type of accommodation, Billups says. “The devil will be in the details.” Social distancing, for sure. Capacity limits, check. Masks, check. “Due to a recent spike in Covid-19 cases, Governor Sisolak has now or-

dered the wearing of face masks in all public spaces and private businesses, which implies that it would at least be four to six weeks before Phase 3 is even considered,” Billups says. “Add to that the time required for properties, producers and ticket brokers to gear up, and then we’re looking at maybe Labor Day openings…if all goes well.” Most artists totally understand the current situation and have worked with booking agents, ticket brokers and media teams to push shows back to more favorable dates, Birtha says. “That’s when we will have more guidance and guidelines in place.” Cantone says he is in constant communication with performers and their people, reaching out to tours. “Artists can’t wait to perform again. It’s the passion for performing live that can’t be replaced with streaming. Fans need to be there. It’s part of making memories. I’m sure this has been the longest time most have not performed.” In some cases, national tours are pushing dates to 2021, and that is understandable, Birtha says. Harry Styles, for example. In Las Vegas, the Dionne Warwick residency in Cleopatra’s Barge has been rescheduled to mid-November. Sting’s residency at the Colosseum at Caesars Palace will return at the end of January. But Rod Stewart brings his show to the same locale starting this September 18. At least as it stands now. “We are seeing active interest from many entertainers who want to return as soon as possible,” says Jason Gastwirth, president of entertainment at Caesars Entertainment. Billups says his clients are cautiously anxious to get back to work. “Anxious because entertainers entertain, that’s who they are. And cautious not only for their safety, but the safety of their audiences.”

The new 7,500-seat Hard Rock Live! in Hollywood, Florida was just getting started when the pandemic hit

AUGUST 2020 www.ggbmagazine.com

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“We are seeing active interest from many entertainers who want to return as soon as possible.” —Jason Gastwirth, President of Entertainment, Caesars Entertainment

Reduced Capacity For Keith Sheldon, incoming president of entertainment for Hard Rock International and Seminole Gaming, the protocols for live performances are an extension of those for the rest of the casino hotel environment. “We’ve already reopened with strict social distancing and mask requirements for guests and team members, plus Plexiglas partitions, alternating slot machines, clean team crews and body temperature screening of guests and team members, all part of our Safe + Sound program,” Sheldon says. “The live entertainment venues will be no different… with respect to guests, artists, crews, and team members.” Subject to government directives, Caesars is planning for a selection of lower to mid-size shows to either operate at reduced capacity for the time being or be moved into larger venues to allow the show to proceed while complying with appropriate social distancing. “This will serve as a solid bridge to the time when we can return operating shows at their prior seating configurations,” Gastwirth says. With reduced capacity, solo performers, duos, even trios might still be able to make a buck, Billups says. “But shows with larger casts will either have to scale back or stay dark until capacity restrictions are economically feasible.” The Four Winds Casinos in Michigan and Indiana will include social distancing at their theaters, which cuts down on the seating, and could make staging some shows financially problematic. “A normal entertainment situation could include reduced seating, but more shows to accommodate guests,” says Frank Freedman, chief operating officer of the casinos. “New information continues to come out daily, and we are actively working with artists on their preferences should limited seating be required.” When the green light does come, the experience will likely differ, at least in the initial stages, Billups says. No merchandise tables. No on-stage audience participation. No meet-and-greets. There will probably be changes when it comes to managing entertainment operations in terms of queuing, seat spacing, ushers, ticket sales, concessions and other routine activities. “These are the elements we are working on defining with health experts,” Birtha says. 16

Global Gaming Business AUGUST 2020

Caesars will practice social distancing, Gastwirth says. Entrance queues at the theaters will be marked to identify the appropriate distance between guests, with modified seating in the showrooms to allow appropriate space between parties and structured egress after the show. Health and safety signage as well as hand sanitizer stands will be positioned at entrances and throughout the venues. “Team members will strongly encourage guests to sanitize their hands prior to entering venues and at key locations such as concession stands, as well as to wear face coverings,” he says. The large assembly piece is the last phase of the overall easing of restrictions for Birtha’s casino. “We are working closely with our local county health department to ensure we have the appropriate protocols in place to deliver the best experience possible,” he says. “We are collaborating on how best to bring the entertainment experience back to our integrated destination resort as soon as possible.”

Getting Creative While safety is a top priority, Sheldon and his staff must take into account the artist community and content providers. In that respect, he expects to think creatively, think outside-of-the-box. “That includes maintaining a willingness to explore new concepts and intermediary steps before a fullblown return to packed venues,” he says. “If we do these things, we should find ourselves at the forefront of the live entertainment industry’s comeback, and set up for both short- and long-term success.” Most of the Mohegan concerts at all levels remain at full capacity. But that doesn’t take into account what a post-virus world will look like, Cantone says. “So I added a new clause in our deals for all our properties nationwide, that protects our guarantees in the event ticket sales are impacted or result in refunds caused again by another crisis,” he says. Artist fees would be reflected to the level of the gross potential, he says. “I’m hoping to test a few of those in a smaller setup model. To keep production and crews limited, comedy or acoustic shows would be a good

p. 14 Entertainment:Layout 1 7/15/20 3:08 PM Page 17

“While right now, there may be ‘no business IN show business,’ show people know in their hearts that the show always goes on.” —Clinton Billups, Las Vegas celebrity manager

place to start.” But truth be told, success depends as much if not more on ticket buyers than performers. “Will the public return, or won’t they? That is the question. It’s a question that has prompted a lot of opinions, but lacks historical data for any accurate forecasting,” Billups says. Cantone has little doubt based on ticket refunds to this point. “In Connecticut, over 81 percent of people retain their concert tickets waiting for that day to come back,” he says. “That puts Mohegan Sun close to the Ticketmaster average of 87 percent. That is a key indicator to me that people will be coming back and can’t wait to see their favorite

artists perform again.” Billups cited the pandemic of a century ago as perhaps an anecdotal reminder. The disease killed millions, but eventually died out. With its demise came the Roaring Twenties, a time of celebrity culture, palatial cinemas, sophisticated supper clubs, sports stadiums and vaudeville. “So while right now, there may be ‘no business IN show business,’ show people know in their hearts that the show always goes on. Even the bubonic plague of the Middle Ages didn’t do away with court jesters!” he says. Cantone agrees. “Know this—the return of the live entertainment industry will signal the final cure that ends this pandemic.”

&ĂĐŝŶŐ Ă ŶĞǁ ŝŶĚƵƐƚƌǇ ĐŚĂůůĞŶŐĞ ŽĨ ƐŽĐŝĂů ĚŝƐƚĂŶĐŝŶŐ ƚŚĞ ƐůŽƚ Ň ŽŽƌ͕ /ŶĐƌĞĚŝďůĞ dĞĐŚŶŽůŽŐŝĞƐ ŚĂƐ Ă ƐŝŵƉůĞ ƐŽůƵƟ ŽŶ͘ dŚĞ hŶŝǀĞƌƐĂů :ƵŵďŽ ĚŐĞΡ ;h: Ϳ ŝƐ Ă ƐůŽƚ ďĂŶŬ ƐƉĂĐŝŶŐ ƉƌŽĚƵĐƚ ĚĞƐŝŐŶĞĚ ƚŽ ďĞ ƵƐĞĚ ŽŶ ĂŶǇ ƐůŽƚ ďĂŶŬ͕ ďŽƌŶ ĨƌŽŵ /d͛Ɛ E ŽĨ ŵĞƌĐŚĂŶĚŝƐŝŶŐ ŝŶŶŽǀĂƟ ŽŶ ʹ Ă ƉƌŽǀĞŶ ŵĞƚŚŽĚ ƚŽ ŝŶĐƌĞĂƐĞ ƉůĂǇĞƌ ĐŽŵĨŽƌƚ ĂŶĚ ƉůĂǇ͘ dŚĞ h: ŝƐ Ă Ň ĞǆŝďůĞ ƐŝŐŶĂŐĞ ƐŽůƵƟ ŽŶ ƚŚĂƚ ƐƉĂĐĞƐ ŐĂŵĞƐ ǁŝƚŚ ϱϱ͟ ϰ< ƐǇŶĐŚƌŽŶŝǌĞĚ ĚŝƐƉůĂǇƐ͘ /ƚ͛Ɛ ĂǀĂŝůĂďůĞ ŝŶ ƚǁŽ ĐŽŶĮ ŐƵƌĂƟ ŽŶƐ͖ ƚŚĞ ͞ ĂƐĞ h: ͟ ǁŚŝĐŚ ŵŽƵŶƚƐ ƚŽ ĂŶǇ ĞǆŝƐƟ ŶŐ ŐĂŵĞ ƐƚĂŶĚͬďĂƐĞ ĂŶĚ ƚŚĞ ͞ ǇůŝŶĚĞƌ h: ͕͟ ĂŶ ĂůůͲŝŶͲŽŶĞ ƵŶŝƚ ĨĞĂƚƵƌŝŶŐ Ă ĐƵƌǀĞĚ ƐƚĂŶĚ ƚŽ ĐƌĞĂƚĞ ĞŶĚůĞƐƐ ŶĞǁ ďĂŶŬ ĐŽŶĮ ŐƵƌĂƟ ŽŶƐ͘ /Ŷ ƚŚŝƐ ƌĂƉŝĚůǇ ĞǀŽůǀŝŶŐ ǁŽƌůĚ͕ /d ƌĞŵĂŝŶƐ ĐŽŵŵŝƩ ĞĚ ƚŽ ŚĞůƉŝŶŐ ǇŽƵ ZĞƐŚĂƉĞ zŽƵƌ &ůŽŽƌ͘ ENDLESS CONFIGURATIONS FOR SHORT AND LONG-TERM NEEDS. FLEXIBLE FINANCING AVAILABLE. CONTACT YOUR ACCOUNT MANAGER TO LEARN MORE.

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Can cashless give casinos a competitive edge? What the new appetite for cashless means for post-lockdown recovery, and what operators need to know before making the leap Your morning coffee. Your tank of gas. Consumers are increasingly comfortable with making everyday purchases with the tap of their credit card, or a tap of their phone using a mobile wallet like Apple Pay or Google Pay. If cashless transactions were once the realm of early adopters, the specter of COVID-19 and the possibility of transmission through cash handling are driving more interest in contactless payments than ever before. In the highly tactile world of casino gaming, cashless can give properties a competitive edge by fostering an environment where game play is safer, cleaner, and more convenient. Players can benefit from the safety of not having to carry cash, and the ease of accessing funds anytime. Cashless gaming also encourages social distancing by preventing line-ups at the ATM machine and casino cash desk. In addition, cashless gaming generates greater operational efficiencies by reducing employee cash handling and the associated safety, sanitation, and security risks. It lessens machine maintenance and results in fewer cash handling errors. Operators can also leverage funding data to improve targeted marketing and promotions. As a growing list of gaming regulators recognize the inherent security, safety, and value that digital payments offer, the earliest adopters in the gaming industry will be in an excellent position to reap the increased liquidity and operational efficiencies that the cashless transformation can deliver. But with numerous options emerging in the market, what should casinos know before they introduce cashless to their gaming floors? First, they should be aware that cashless can be offered to players in multiple ways and can be tailored to the needs and profile of a property’s specific customer base. IGT, the cashless gaming company, offers three flexible variations of the cashless experience through its Resort Wallet with IGTPay module, an optional, integrated feature of the IGT ADVANTAGE® casino management system. Properties can choose one, all, or any combination of the following options:

1) “Carded” cashless using a Players Club or other casino-branded loyalty card. Players load

cash into a secure digital wallet from either the casino cash desk or any slot machine, and access those funds from any slot machine or table game using the card.

Advertorial

third-party payment gateway provider. But IGT is the exception. Its in-house payment gateway services have successfully enhanced the player experience across the U.S. digital gaming and lottery verticals for several years. “With IGTPay, IGT can act as the Merchant of Record and manage the external funding function from end-to-end, which lets our customers focus on the rest of their operations without having to manage the relationship with a financial institution,” said Ryan Reddy, IGT Vice President, Global Systems and Payment Products.

2) “Cardless” cashless using a digital wallet via a mobile device. When players use IGT’s Resort Wallet feature with any Cardless Connect™ enabled gaming machine, their smartphone is transformed into a secure digital wallet. They simply tap their phones to card in, then easily and quickly transfer funds Casino operators should between slot machines also be aware that the Operators should be aware and table games onsite, as (cashless) buck doesn’t stop that not all cashless solutions well as between a casino’s at the software. Busy gaming sister properties. Funds are created equally. operators don’t have the time in the digital wallet can to navigate the complexities be redeemed for cash of offering a cashless service. That’s why IGT’s at a kiosk or the casino cash desk, or securely experienced, integrated Payments team is essential to maintained in the wallet for the next play ensuring a smooth, seamless, and low-maintenance session or property visit. cashless offering that’s sustainable over the long term. Notably, operators don’t have to worry about developing their own casino player Overall, the player experience will determine app to enable these mobile features. IGT successful adoption of cashless gaming, and IGT has developed a turnkey, all-in-one app that recognizes the need to keep it simple. Other gaming can be customized with any operator’s manufacturers that supply cashless products require preferred branding. players to register for two separate accounts — a digital wallet account to access the external funding, as well as a casino management system account to enable wagering on the floor. This adds an unwanted layer of complexity to the player experience and discourages adoption.

IGT’s Resort Wallet with IGTPay transforms the player’s smartphone into a mobile digital wallet, enabling players to effortlessly make cashless transactions on gaming devices.

3) Cashless with an external funding gateway takes the contactless, mobile experience to the next level by combining IGTPay, IGT’s proven payment gateway technology, with the services and support of its experienced Payments team, enabling players to securely access funds directly from external sources such as bank and credit card accounts. IGT’s proprietary payment gateway product has been operational in global digital gaming and iLottery markets since 2013. Critically, operators should also be aware that not all cashless solutions are created equally. Other gaming industry vendors need to procure and integrate their external funding technology with a

However, IGT’s payment gateway solution ensures that after initial set-up, players only require a single digital account and login to make funding transactions. It’s the only gaming supplier offering simple one-step technology that enables players to enjoy a truly effortless cashless experience. In many ways, the impending cashless transformation mirrors the groundbreaking Ticket-In, Ticket-Out (TITO) voucher system that supplanted the industry’s reliance on currency-only slot play more than 20 years ago. “IGT introduced TITO in the market, and it completely revolutionized the way casinos operate,” said Reddy. “Today, our Resort Wallet with IGTPay solution represents a major evolution in advancing the player experience, and ultimately reinforces our position as the cashless gaming company.”

The Cashless Gaming Company We transformed the industry by introducing cashless gaming with TITO. Now we are revolutionizing cashless yet again. IGT ADVANTAGEÂŽ Resort Wallet Carded Cashless | Cardless Cashless | IGTPay

ÂŠ 2020 IGT. The trademarks and/or service marks used herein are either trademarks or registered trademarks of IGT, its affiliates or its licensors. Artwork, descriptions, game play, photographs, videos, and other product details depicted herein are subject to change. IGT is committed to socially responsible gaming. Our business solutions empower customers to choose parameters and practices that become the foundation of their Responsible Gaming programs.

p. 20 GLI:Layout 1 7/15/20 3:11 PM Page 20

Guiding Light GLI doubles down on helping clients get through and recover from the pandemic shutdown By Frank Legato

F “

We’re just here to help the suppliers get through this. And whether they’re supplying a lot or a little, we’re going to have people on the ground ready to take their work and get it done.

”

—James Maida, President and CEO, Gaming Laboratories International

Global Gaming Business AUGUST 2020

or 31 years, if you’ve wanted to take the pulse on the nature of the games being offered by casinos at any given moment, you could go to James Maida. Along with Pau Magno, Maida founded Gaming Laboratories International in 1989 as an alternative to state-run testing labs that often became backlogged with new products as slot machines evolved and multiplied. As new casino markets opened in the Midwest and various Native American markets, slot games that formerly would have launched in Nevada or New Jersey began debuting in a growing array of states recognizing GLI certification. As such, new products and emerging technology have invariably passed through GLI’s labs for certification. In the early years, this primarily involved games and systems for casinos, lotteries and charitable gaming. As the industry grew, GLI developed expertise in online gaming, geolocation, cashless payment systems, responsible gaming systems and network security. GLI’s engineers have been among the first to see a parade of new technology that has poured into casinos. The company has partnered with regulators, manufacturers and operators on all manner of technology designed to move the industry ahead. Of course, none of that history could have led to anyone foreseeing 2020. But GLI’s years of investment in technology allowed it to quickly adapt to deal with the current crisis. As the industry faced an unprecedented shutdown due to the Covid19 pandemic, Maida’s team kept GLI working at full speed, shifting focus to helping clients survive, and to deploy technology that would ultimately help operators to reopen and operate safely. Meanwhile, the equipment testing that is at the core of GLI’s mandate has continued. “We saw things coming in March, and we quickly figured out how to use technology that allowed us to continue serving our clients during the crisis,” says Maida, who is GLI’s president and CEO. “When the pandemic was taking shape, we immediately contacted our regulators and learned to access gaming equipment in a way that kept our

p. 20 GLI:Layout 1 7/15/20 3:11 PM Page 21

“

Manufacturers are deploying and developing new technology all the time. And so, it’s important that we stay ahead of those (developments). And I think regulators have recognized fairly early on that it was commercially better for them to use a commercial lab that could invest in the technology and the resources to understand that technology.

gaming continue to grow.” employees and clients safe, while continuing The mobile applications have become more to fulfill the needs of regulators and the inimportant as sports betting has geared up. GLI dustry. works with most of the sportsbooks in the U.S., “Our previous investments in remote testing platforms and technology, in addition to work technology were essential to our abilwell-established operations around the world. ity to provide seamless service to our stakeholders.” Remote testing, of course, is nothing For GLI, the Covid-19 pandemic has expanded new for GLI. “Over the last four or five more than testing in online and mobile applicayears, we’ve developed a robust system tions. The crisis has spawned a wealth of new where we can remote-control all of the slot —Ian Hughes, Chief Commercial Officer, GLI technologies designed to allow casinos to reopen machine games that are being testing in the and operate safely amid the ongoing Covid-19 lab from outside the lab,” Maida says. “So, pandemic. our employees were able to work from “There have been a lot of system improvements,” Maida says. “People are home and test games that were in the lab.” thinking about problems such as when a player ends a session on a game, how The same went for other GLI departments. “Over a three-day period, the system will be able to alert staff to come and clean the game. our IT, HR, accounting and legal teams quickly transitioned to remote “The other thing we’ve seen a lot is payment processing, and new ways of work,” Maida says. “We have hundreds of employees now on remote conputting money on the games. We’re seeing a lot of submissions around connections. Our servers are just as fast as if they were in the office. We also rectact-less, touchless ways of moving money onto the game and moving money ognize that no office can run without people. Thus, we worked within the off the game.” CDC guidelines to ensure that a small group of essential employees could In this case, he adds, the pandemic is speeding up the industry’s adoption work in our offices safely. Throughout this crisis, the health and safety of our of payment methods that are routine in the retail world, where there is a growemployees has been the top priority. ing reluctance to handle cash. “I think I’ve had the same $20 or $40 in my “We’re here to help the suppliers get through this. And whether they’re wallet for the last two months,” he says, “because now I charge $5.50 on a supplying a lot or a little, we’re going to have people on the ground ready to credit card, which I never used to do. I think we’re seeing a lot of changes in take their work and get it done.” money management. We’re working closely with regulators to move this techWhile slot game volume may have dipped while suppliers were forced to nology through the lab and into the field. It is not just a response to the panfurlough R&D staff, there has been plenty of other work that has filled the demic, but also fulfills consumer demand and improves protections against gap. One of these areas, of course, is U.S. online gaming. money laundering.” “Throughout Europe and Asia, we do lots of online gaming (testing),” Health-conscious technology is not all that’s new on GLI’s testing menu. Maida says. “We’ve had a lot here in the United States, and the amount of The coronavirus crisis is contributing to the rise of a style of game that has online work is increasing. been viewed as illegal in the past—the so-called “skill games” that are prolifer“I think that as time goes on, you’re going to see regulators and state ating in non-casino locations in several states. In the latest development of that governments and policymakers start switching to more of a digital environongoing story, lawmakers in Wyoming and Virginia have, at least temporarily, ment. We are seeing a realization that there are times when consumers need moved to legalize and regulate games of skill, along the same lines as video access to remote entertainment. In addition, gaming revenues fund imporgaming terminals prevalent in states like Illinois and Montana. tant state and tribal programs, and online gaming can at least keep casinos “These skill games are a new type of gaming the states are looking for, to alive, and lotteries stable during times of crisis. It helps these companies to allow them to again make money and make revenue for the state,” says Maida. continue serving their customers, making money, and retaining employees.” “And I expect to see more of this. New types of gaming are coming, new kinds GLI’s Colorado office hosts the growing online gaming division in the of ideas are coming, and we’re always here to help people.” U.S. and complements its huge iGaming testing division in Europe. “We Wyoming and Virginia are regulating skill games to fill the revenue hole test all these products not only on iPhone, but Android and all of the other left by Covid-19 business shutdowns. According to Maida, GLI tests the skill different platforms,” says Maida. “As new devices come out, we have to test games with the same dedication to ensuring integrity that is used for casino them. As new systems come out, we have to test them against all known degames. “We work very closely with Wyoming and Virginia,” he says. “The vices.” states will give us the rules and regulations they want to use, so each state will “Mobile device gaming has just exploded,” says Ian Hughes, GLI’s chief be different. commercial officer. “We believe, with the advent of 5G, that will just con“With respect to how you figure out a payout percentage, we can calculate tinue to grow, because the separation between what you’re able to do at the best player never making a mistake—that will come out as a percentage— home on a broadband connection, in terms of viewing the sports on your we can come up with an average player, and what that percentage would look mobile devices, that gap has become smaller and smaller. We see mobile

Expanding Expertise

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“

The work has become harder, the technology is more difficult, and the games are much more complex than in the past. The mediums have really changed. Before, it was plug a slot machine in, it had three reels; it was pretty simple. And now we have all of these different types of games, and iGaming, and sportsbooks and sports betting.

”

—James Maida, President and CEO, Gaming Laboratories International

like, and we can come up with an unskilled player, and what that percentage would be. Then it’s up to the state to tell us what percentage to use— should it be an average-skilled player? Should it be a poorly skilled or highly skilled player?” Maida is careful to draw a distinction between state-authorized skill games in states like Wyoming and Virginia and the unregulated games still proliferating in a variety of retail locations in Pennsylvania and other states. In fact, GLI Vice President of Government Relations Kevin Mullally contributed a white paper on unregulated gambling to the efforts of the Association of Gaming Equipment Manufacturers and the American Gaming Association to fight against unregulated machines. “AGA and AGEM are taking a tough approach that gambling machines should not be used in a state jurisdiction where they’re not legal. Our white paper explains the scope of that problem and the related policy implications,” Maida says. “In Pennsylvania, those games are not regulated by the Pennsylvania Gaming Control Board. We would see that as illegal gaming. We see that as a very clear line. We work for regulators; we don’t test games that go into illegal markets.”

Adapting to Change Adjusting to the new challenges created by the global pandemic is second nature to GLI, which has spent 31 years adapting to an industry that is constantly evolving with new technology. “As the industry has grown more complex, we have developed staff to serve its needs. During each industry evolution, GLI has ensured that we have the staffing, expertise and technology to quickly, efficiently and accurately move technology through the lab and into the field. That will never change,” Maida says. “The work has become more challenging, the technology is more multifaceted, and the games are much more complex than in the past. The mediums have really changed. Before, it was plug a slot machine in, it had three reels; it was pretty simple. And now we have all of these different types of games, and iGaming, and sportsbooks and sports betting. “But the quality of how we approach it today continues to increase. Last year, we had a revocation rate of less than one half of 1 percent. I don’t think anybody else is close to matching those numbers.” “Technology is always evolving,” adds Hughes. “Manufacturers are deploying and developing new technology all the time. And so, it’s important that we stay ahead of those (developments). Regulators recognized fairly early on that it was financially better for them to use an independent, private lab that could invest in the technology and the resources to understand that technology. And so, we continue to serve that around the world.” The fact that technology is changing so rapidly in the gaming industry means that GLI’s professionals have a unique view of what’s ahead in the industry. “We now have over 60 people in our technical compliance division,” says Maida. “They travel the world, they meet with clients, and 22

Global Gaming Business AUGUST 2020

they’re the first line to say, hey, this is what is new, and work with clients and regulators on ways to efficiently test it with great quality. We monitor all the new technology. “All of our clients globally give us a one-to-two-year roadmap of all their new products coming. This allows us to know things a year ahead of when you might see them at a show. We can then go brief regulators on what’s coming. That’s a very large portion of our work.” That technological foresight extends to all corners of the industry, as GLI continues to work not just with suppliers but with operators, to test iGaming or sports betting operations, or, through the company’s Bulletproof division, to assist casinos in the cybersecurity area. “We’re engaging with operators more and more every year, almost as much as we engage with suppliers today,” says Maida. “We help the operators in a couple of ways,” adds Hughes. “First of all, indirectly, when we do work for suppliers that are putting product onto the operator’s floor, it’s our job to make sure that it works correctly, it integrates with systems correctly, and it works seamlessly when it hits the floor. And then of course, directly, on the side of security. We understand gaming systems better than anyone else, especially when it comes to cybersecurity.” “Our cybersecurity division, Bulletproof, was in business 20 years before we acquired them five years ago,” says Maida. “That division is growing rapidly. Through this coronavirus situation, there’s been more fraud on the internet than ever before. That part of our business is growing 30 percent or 40 percent per year.” Bulletproof’s work also extends to lotteries around the world, as well as outside of the gaming realm entirely. “Almost 60 percent of (Bulletproof’s) work is non-gaming,” Maida says. “We work with people who operate dams, and electrical companies and large oil companies. Those people are also concerned about cybersecurity.”

Rebooting the Industry As several states experience fits and starts in the process of reopening the casino industry, GLI is helping wherever the company is needed. “We are moving at (our clients’) pace,” Maida says. “Some casinos have opened to large crowds because of the pent-up demand, and now, several weeks later, we’re starting to see what that demand is. “We’re taking care of clients first, with personalized customer service. We’re doing field testing where we’re asked to. We’ve also done some geolocation testing for clients. And we’re continuing to work at not only the regulators’ pace, but the operators’ pace. When they need to reopen and they need our services, we’re going to be there.” Meanwhile, GLI continues its efforts to provide education and peer review opportunities in the regulatory community amid the rapid changes in the industry. The GLI University training program continues with a host of virtual events, such as a major webinar series. The next major North Amer-

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ica Regulators Roundtable is slated for March 2021, but the virtual events are covering more immediate issues in the meantime. “One of the things we’re seeing is a shift away from table games and onto multi-station electronic table games, where there’s no dealer,” Maida says. “A lot of that content has been featured in the webinars, whether it’s in Latin America or North America or Europe. It’s interesting, because we’re a global company, and in all of our offices around the world, we’re in a different phase of the coronavirus.” The agility of GLI’s staff in adapting to the post-Covid world will be paramount over the following year. “As we come out of this, most CEOs are thinking of two things: One, we’re very hopeful that we come out—we’re hopeful for this fall and we’re hopeful for next year. We’re hopeful for a vaccine, and we’re hopeful for an anti-viral drug that will help. “But I think you also must plan for what would go wrong if there was a second wave, and we had to shut down a second time. So, I don’t spend a lot of my time thinking about what’s coming in on a daily basis, because we have a huge team that handles all the requests. I’m trying to think about the effect on our employees and our teams and our company if, God forbid, we have a second shutdown, or certain casinos open and then are forced to close and reopen again. I’m spending most of my time planning for all the contingencies going forward,

because we want to make sure GLI is sustainable for the long term. “We’ve been doing this for a lot of years, and we’ve seen a lot of crises—financial crises, we’ve lived through two or three of those; we’ve been through 9/11, where people couldn’t get on a plane. But we’ve never seen a crisis where all the casinos in the world were shut down simultaneously, on the same day. No one would have thought that could have happened. So, I would say this is our biggest challenge yet, but we continue to look forward and try to be hopeful, but be on guard for what might happen in the future—and plan for both scenarios at the same time.” Whatever the near future holds, Maida has built a corporate culture for GLI that will carry the company through. “We value our team members, and we want to make sure we have a world-class employee experience,” he says. “Not only do we go for a world-class customer experience, but we want to make sure our employees are not only well taken care of, but they’re well trained, and that we provide each employee with a path to greatness.” That means GLI employees often move to other parts of the industry, which Maida says actually is a testament to that corporate culture. “As I travel around the world, how many suppliers have former GLI employees working for them now? I think that’s a good testament, hopefully, to what we started with each of them. I’m glad our employees have a chance to reach for the stars, and we want each one of them to do that, because we know that we’re developing tomorrow’s leaders.”

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Southern Exposure Why gaming in the South is one of the last opportunities in the U.S. By Brendan Bussmann

he United States hosts a diverse set of gaming options from coast to coast. The gaming-rich Northeast continues to be dominated by strong regional destination casinos such as Encore Boston Harbor, Mohegan Sun, Borgata and Wind Creek Bethlehem. The Midwest remains the focus of the riverboat gaming. Tribal gaming also prevails across the country from North Carolina to Oklahoma and all along the West Coast. The southern portion of the United States remains largely untouched when it comes to casino gaming. One of the many reasons for this over the years has been the long-held values and deep religious beliefs within these communities that have had an aversion to casino gaming. Currently, only three Southern states offer large commercial casino developments in Louisiana, Mississippi, and Arkansas, with two other states, North Carolina and Alabama, that offer only tribal gaming. Florida and Texas, while both part of the southern United States, hold out as their own markets because of their scope and size. This leaves several large states from Virginia to Georgia to Kentucky devoid of casino gaming. However, before one looks at expansion opportunities in the region, one must understand the historical development of the market.

Betting in the Bayou Louisiana has a total of 25 casinos, including 20 commercial casinos and five tribal casinos with a host of video gaming terminals located across the state. Revenue for the state has been in a slight decline over the previous five years and prior to the Great Shutdown, from $2.6 billion down to $2.4 billion. From top: Four of the nation’s most successful casinos are in the South, and all are owned by tribes—Seminole Hard Rock Casino Hotels in Hollywood and Tampa, Florida, Wind Creek casino, owned by the Poarch Creek Band in Alabama, and Harrah’s Cherokee in North Carolina 24

Global Gaming Business AUGUST 2020

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Louisiana Historical Casino Gaming Revenues

Mississippi Historical Casino Gaming Revenues Gaming expansion in Louisiana provides challenges on two fronts. The first is that gaming expansion must be approved on the ballot. Expansion was last taken to the voters in 2018, when 47 of the 64 parishes in the state approved fantasy sports. Sports betting will be on the ballot in 2020. This provide significant resources and revenue not only for their immediate was one of numerous items up for debate in the legislature this year, approved tribal communities, but also for the surrounding communities. through a host of minor adjustments to the existing gaming law, and the fanTribal communities are known for their ability to give back to the tasy sports regulations that were approved in an extraordinary session in June. communities in which they operate and act as good, strong community Mississippiâ&#x20AC;&#x2122;s gaming roots lie both in tribal interests and commercial gamstewards. The economic impact multiplies significantly beyond just their ing. After the passage of the Indian Gaming Regulatory Act in 1988, the Misimmediate gaming revenue generated. The differences between these sissippi Band of Choctaw Indians opened the Silver Star casino in 1994. The states is that the Cherokee have a tribal compact and operate Class III Mississippi legislature would pass the Mississippi Gaming Control Act shortly gaming, while the Poarch Creek do not currently have a compact and opthereafter to help the stateâ&#x20AC;&#x2122;s economy. Mississippi has had a relatively stable erate Class II gaming. Sports betting is also legal in North Carolina and source of revenue for the state, with an uptick in the Coastal Region in 2019 available for tribes to offer, but it is not yet operational. that provided a minor uptick in statewide revenue to just over $2.1 billion. While Florida is part of the South, it has evolved into a diverse gamMississippi was also one of the first states to allow sports betting, but only ing market of its own. When it comes to casino gaming in Florida, all in a land-based model. The market, which is coming up on its two-year anroads run through the Seminole tribe. As with most tribal gaming, revniversary this fall, has followed a typical cycle of sports wagers, but saw its peak enue information is not publicly available, but reports have shown that last fall with players that were coming from other states, particularly wagers on the Seminole tribe nets roughly $2.5 billion annually, with their current the Astros in the World Series. The market has been limited because it has not revenue share payment set at $350 million. yet embraced mobile wagering. Mississippi also recently added lottery to its Even as Florida expanded land-based gaming through racetracks, the gaming market, after being one of the last states not to have a lottery. tribe has been thoroughly involved in discussions with the state regarding Arkansas has had forms of gaming dating back to its initial adoption of its exclusivity to offer certain Class III games in Florida. The commercial electronic games of skill in 2005. The market has been dominated by the two gaming side does not nearly generate as much revenue, due in part to the racetracks, Southland and Oaklawn. The state has gradually grown into a limitations on the market offering permitted for these facilities. $425 million gaming market, and it continues to grow, especially with the introduction of table games and sports betting after gaining voter approval in November Florida Racino Slot Revenue Summary 2018, as well as a third location in Saracen Casino Resort. The South also has two tribal gaming states dominated by the Eastern Band of Cherokee in North Carolina and the Poarch Band of Creek Indians in Alabama. While gaming revenues for both of these jurisdictions are not publicly available, these tribal entities AUGUST 2020 www.ggbmagazine.com

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Colonial Downs racetrack is part of a network of facilities owned by Peninsula Pacific that offer historic horse racing machines (HHR), but five casinos have been approved for the Old Dominion

The Immediate Road Ahead While there are pockets of casino gaming throughout the South, the landscape is wide open for its future. This includes developments over the past few years that have moved the needle forward, such as the addition of sports betting in Tennessee, as well as one of the largest and most comprehensive gaming expansion bills in Virginia that, beyond casinos, included sports betting, the temporary legalization of “games of skill,” an expansion of historic horse racing (HHR) machines, and online lottery. While these states are still in their ramp-up phase, they will be moving forward with their efforts beginning in the fall. Tennessee was the first U.S. state to legalize a mobile-only sports market, to be regulated by the Tennessee Lottery. When initially passed, it was viewed by many as a model that could be taken to other states that did not have casino gaming but looked to create a mobile market to effectively compete against the illegal market. However, the market has become far less than ideal since the initial rules were introduced at the end of 2019. In addition to the annual $750,000 license fee, the regulatory structure mandates a minimum hold percentage of 10 percent for any operator. This is one of the pitfalls of selecting a risk-averse institution in the lottery to regulate a high-volume, low-margin business. Virginia is on the fast track to move forward with the regulations for casino gaming and sports betting. In the bill approved in April, up to 15 sports betting licenses and five casino locations may be authorized. Sports betting allows for mobile-only licenses, and will be a competitive process with implementation due as per the law by September 15, after rules were only released in mid-July. The lottery, which serves as the regulator, will then have 90 days to move forward with licensure. Operations are not likely to start until 2021. Casino gaming is also on the fast track, and the five potential locations have largely chosen their partners but still have to be approved locally on the ballot this November. The five locations include Bristol, Danville, Portsmouth, Norfolk and Richmond. Let it also be noted that under the auspices of SARS-CoV-2, Governor Ralph Northam allowed the temporary legalization of “games of skill” to bring in revenue. While these illegal machines are becoming more controversial across the country, most industry experts believe that compliance and revenue projections will not be met.

The Long-Term Forecast Gaming expansion opportunities are still alive and well in other Southern states, with the most active debates being held in Alabama and Georgia. 26

Global Gaming Business AUGUST 2020

While Alabama already has a strong tribal market through the Poarch band, its gaming operation in Wind Creek Hospitality launched a campaign that would expand its operations by seeking a Class III gaming compact while allowing the state to provide a lottery to generate additional revenues. Alabama Governor Kay Ivy has taken a different path forward with a potential expansion. She launched a study group earlier this year that has since held a handful of meetings and is in the process of assembling its report to the governor. While a submission is not due until the end of the year, it is expected the group will turn a draft around in August or September. This will set up a likely battle for the 2021 legislature, moving forward to Alabama voters soon after. Georgia has debated gaming expansion for decades. While currently offering only a robust lottery product, the state came very close to finally presenting an opportunity to the voters. Two proposals were considered as part of this effort. The first was to allow sports betting in the state, and was backed by the local sports teams in addition to potential operators. The second was to allow not only sports betting, but also casino gaming and parimutuel wagering. While Georgia has flirted with this several times, many stakeholders believe that all forms of gaming should be allowed at once, versus piecemealing the process going forward. Georgia, like many states, is facing a financial challenge with the pandemic that only enhanced the shortfall in their HOPE scholarship fund. 2021 will prove to be a pivotal year toward gaming expansion in Georgia.

The Holy Grails of U.S. Gaming Two Southern states, Texas and Florida, remain the holy grails of potential U.S. gaming development. While both states have some forms of gaming, with Texas being more limited than Florida, they offer striking differences in their makeup and potential future opportunity. Texas, which many would say is a region of the country in its own right, is notorious for having eight-liner machines dotting the countryside. While they do have a state lottery, parimutuels, tribal gaming and other forms of gambling, Texas remains one of the last states that does not have a robust gaming market after multiple attempts to try to expand the market over the years. One of the challenges that persists in the Lone Star State is a short legislative session, and it is one of four states that meets only every other year. It is difficult to get major issues such as gaming through the legislature without a sustained education campaign to the legislature and the citizens. Texas also has been a state where gaming interests between the racetracks, the tribes and other interested parties in the market have not been on the same

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Georgia has no casinos, but if proponents play their cards right, Atlanta could become home to one of the biggest casinos in the U.S.

page. This does not include the state’s continued opposition to the tribe’s operations. Sports betting might be the breakthrough in the effort with a strong pool of pro sports owners of the Dallas Mavericks, Dallas Cowboys and Houston Rockets, all of whom have shown continued interest in gaming. Sports betting in Florida proves to be a challenge going forward, as it largely surrounds the gaming compact. The Seminoles and Disney championed a ballot initiative in 2018 that created substantial challenges for any expansion to be approved, as it now must be approved by voters at the local level. This put a strong block to prevent further competition against the Seminoles and allowed Disney to secure its family-friendly offerings. Sports betting does have the ability to be part of a new/amended gaming compact, but this seems far off in the distance based on current politics in Florida, which are some of the most interesting in the United States.

that do not have robust gaming footprints will need to take these initiatives to the ballot for a constitutional amendment. While nothing is a given, gaming in the South appears to be headed in the right direction as these states expand beyond the current commercial base of Louisiana, Mississippi and Arkansas. Tennessee and Virginia will be the next two states to go down that path. The future is bright for further expansion throughout the South, but only time will tell if it happens, how quickly it may happen, and how history can serve as a guideline to help both operators and states to create dynamic markets. Brendan D. Bussmann is a partner and director of government affairs with Global Market Advisors.

Setting the Standard as States Expand As states look at the expansion of gaming, governors, legislatures and other stakeholders must consider the potential impact of current and future gaming offerings in the state in terms of economic output, social implications and regulatory structure. The key to gaming policy is to set the standard for the long term. It should not be viewed as a quick fix to solve a budget crisis or to fill a niche, as many states have been using SARSCoV-2 as a rationale to allow for the expansion of gaming to fix current deficits. Crafting sound policy and regulation is essential to the long-term success of a market and allowing the proper level of competition. Illegal gaming activity, whether from within a state’s borders or offshore, must also be evaluated for the state to recoup those lost gaming dollars. Integrity, first and foremost, exists in the laws and regulations that are the cornerstone of any gaming market. As states consider legalizing or regulating other forms of gaming, lawmakers should consider first the existing footprint of legal gaming. Many of these states

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MAKING MY POINT

Coming Into Their Own While they might have been ahead of their time, some table games are now just arriving

ome character in some play or some bard wrote: “Better three hours too soon than a minute too late.” Which is sage advice if you’re catching a bus or a movie, or you’re exacting revenge on the man trying to make you his cuckold (The Merry Wives of Windsor, Act 2, Scene 2), but which is not if you’re conjuring consumer products for a living. Because in that world, the world of ideation and innovation, of experimentation and mutation, tardy often beats early to the punch. Yessiree, some concepts fail simply because they have committed the unpardonable sin of being ahead of their time. Now let’s pump the brakes for a second. We said some, not all, and not even the majority. The cause of death for most ideas—in gaming or whatever industry you cite—is that they stink. Maybe they cost too much or do too little; maybe they provide scant value to the user and scanter ROI to the middleman; maybe they are simply ill-conceived or poorly executed. In other words, maybe they are simply rigoddamn-diculous. True that; for the moment let’s focus on one particular idea that’s been incubating for about 15 years, like those cicada bugs, but that finally seems ready to hatch. Like those cicada bugs. In the mid-2000s, Mark Yoseloff, then CEO of Shuffle Master, predicted, repeatedly, emphatically, incessantly, that a seismic shift was in the offing in the world of table games. And that the continental drift in its wake would result in essence, in three future form factors, separated by physical distance as well as cost of entry: • Fully electronic for low-limit play. • Hybrid (real dealer and electronic wagering) for mid-level play. • Traditional games (real dealer, real cards, real chips) for high-limit play. Mic drop. Upon hearing this—repeatedly, emphatically, incessantly—the typical observer rolled his eyes or shook her head. E-tables, while fully evolved in Europe, Australia and Asia, were just crawling out of the primordial ooze in North America. How

Global Gaming Business AUGUST 2020

By Roger Snow

could they, with their glitchy, Max Headroom animation and blocky button panels, take such a Cookie Monster bite out of the casino’s, uh, cookie? Fast-forward to today and you’re starting to see this vision come into focus. E-tables are indeed the fastest-growing segment in land-based casinos, encroaching not only into the table games pit but the slot floor as well. So, now that we know Dr. Yoseloff was right all along, let’s jump on this bandwagon. And then highjack it. Where are we headed? Keep scrolling to find out.

terminal wagering, was already on the march. Throw in the benefits of social distancing and remove the drawback of sanitization (look Ma, no chips) and stadium setups are ready for their closeup. They take dead aim at the mid-level customer, the fattest part of the Bell Curve. Bulls-eye. It’s not uncommon to see an array of 20, 30 or even 100 terminals encircling one of these platforms. Add high-definition betting interfaces that let players bet on more than one game at a time, along with multimedia video walls and dealers that act like entertainers, and you have the perfect concoction to attract and retain players.

Solo Action

Content Cometh

Low-limit blackjack has been under assault for years. Six or seven $5 bettors playing some semblance of basic strategy can’t generate enough money for a casino to break even, let alone win a few bucks. Unless, of course, you pay blackjack at 6-to-5 and you gaff up the game with a menagerie of high-holding side bets, even if you force players to make them. True story. They’re out there. Enter virtual table games. These have a video or animated dealer, electronic cards and five or six betting terminals. They’re basically a slot machine with table content like roulette or Three Card Poker. With more hands per hour and minimal operating expenses, casinos are able to run $5-and-less games—which tend to attract those coveted younger players—and run them in the black. Look for this segment to grow, but the big push will come from single-player games. You see these already in the slot halls of Macau, or the gaming clubs of Australia, where players play at what amounts to their own virtual baccarat table. This will expand into other game types, like blackjack and roulette, aided by the elegant cabinetry already being marketed by the major slot companies.

Ninety percent of electronic table games, be they fully electronic or hybrid, are either roulette, blackjack or baccarat. There’s not much in the way of diversity. Sure, sure, you’ve got a few of those craps and sic bo games where the dice bounce around in one of those bubbles from the kid’s game “Trouble,” and you can find the odd Ultimate Texas Hold’em or Three Card Poker out there. But, moving forward, this will change. You will see e-tables not only with progressive jackpots, but with progressive jackpots that tie into the felt games in the pit. You will see roulette and baccarat games with proprietary features, something that can only work when wagers are resolved electronically. You will see community bonuses that will turn stadiums into, well, stadiums, where everyone roots for—and roars for—the same outcome. You will see more side bets than you can shake a stickman’s stick at. And speaking of the stickman, you will see a craps game that looks like and plays like a craps game. And you will see all of this sooner than you think, because for these ideas, the time is now.

Stadium Rules Stadium gaming is the next great juggernaut, and it’s not just the post-Covid winds filling its sails. This form factor, which features a live dealer and

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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Non-Gaming:

Back-to-Basic Tips

By Marjorie Preston

n the past 15 years, as U.S. gaming markets got more crowded, operators invested in non-gaming attractions to draw more customers, draw According to the annual American Gaming Association State of the States younger customers, fend off competition and, of course, give guests an report issued in June, in 2019 commercial casinos in the U.S. racked up a all-around resort experience. The acceleration is reflected in the parlance— record-breaking $43.6 billion, a 4 percent year-on-year increase, and the what once were casinos became casino hotels, which became casino resorts, fifth year of consecutive growth. The future looked golden. and finally, resort destinations or even integrated resorts, terms that skirt Within 10 weeks, the whole thing collapsed due to a virus that first shut right past the gaming element. down casinos in Macau last winter. By mid-March, virtually every commerNevada is the oft-cited example. Research from the Center for Gaming cial casino in the U.S. had closed, followed by most tribal facilities, and the Research at the University of Nevada, Las Vegas showed that in 2018, the avworld went on lockdown. erage Las Vegas visitor spent $435 per trip, of which $285 went to non-gamMost of those casinos have since reopened, but in many cases, at first ing attractions, and just $150 to gambling. In super-regional destinations like gaming was pretty much all they offered. In Atlantic City, for example, Las Vegas and Macau, operators have outdone each other which began to reopen on July 2, casino patrons initially couldn’t dine or with lavish pools and spas, high-end nightclubs, virtualeven order a drink inside a casino. So all those fancy extras—the pools, the reality amusements, pricey entertainment packages—the concert halls, the spas, much of the F&B—counted for nothing in terms of works. revenue. But those types of amenities are supported by a “We’ve been in touch with every client we’ve worked with for the last leisure class with ample discretionary income—some20 years, and with 50 percent to 60 percent of gaming seats open, they’ve thing that may be in short supply right now, found that that their quintessential gamer is not the casual gamer,” says Neand for the foreseeable future. jelski. The focus now is “primary operations.” In other words, gaming is The rationale behind non-gaming adstill king—the foundation on which all else rests. ditions remains sound, according to David With new safeguards including social distancing, a lot of those Nejelski, creative director and principal at amenities are compromised anyway. Buffets are out for the foreseeable St. Louis, Missouri-based TBE Architects. future, along with other close-quartered amenities. “It’s still pretty much universal that our In TBE’s markets in particular—primarily consisting slot player is a baby-boom woman of of regional and locals casinos, including tribal operations— above-average income; that’s who casinos “we haven’t seen a reduction in gaming to accommodate have to take care of during the day, but more amenities—we actually have seen the inverse,” says after that, (non-gaming) amenities give Nejelski. “It’s particularly important nowadays, with the other people a reason to come.” shutdowns and the reopenings. Because the core gamer, the They’re not all high-end, status-forcore customer base is coming back first.” sale amenities, either. Some remote gamA whole new world? Undoubtedly. Here are seven tips ing halls seize the opportunity to become on non-gaming that make sense now, and could become all-purpose entertainment districts, says standard applications in the resort of the future. Nejelski, “with a bowling alley, a cineplex, restaurants, gaming, a sportsbook or sports Take it outside. “Instead of looking at brand-new amenibar, a hotel and pool, a golf course.” ties or the latest gimmick, we’re looking at ways to reimagBut when the going gets tough, the ine the assets and amenities casinos already have, in a new occasional guest matters less than the core and better way,” says Nejelski. That includes outdoor dincustomer—the gambler. In these challeng—David Nejelski, Creative ing, outdoor fitness centers—“everything that can go outing times, Nejelski contends, it’s time to Director and Principal, TBE Architects side,” all of which can be marketed as healthy options in a get back to basics.

The Big Drop

“Instead of looking at brand-new amenities or the latest gimmick, we’re looking at ways to reimagine the nongaming assets and amenities casinos already have, in a new and better way.”

Global Gaming Business AUGUST 2020

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Outdoor dining at the new Havasu Landing Resort & Casino, which opened at Lake Havasu, California in 2019

safety-conscious age. It works for gaming, too. TBE designed its first “gaming patio” in 1999, at a casino in Southern California, to take advantage of continuous balmy weather, and Nejelski expects that such al fresco options could be the next big thing. “In an Ohio gaming property, we did outdoor gaming patios because people couldn’t smoke inside,” he says. “We heated the slabs, heated under the machines to keep them warm, and used radiant heat panels. You could go out on a day when it was 25 degrees outside, and it was actually pleasant.” Waste not, want not. One thing Nejelski abhors in any resort is the un-

used space—any square footage that doesn’t pull its weight in proportion to the capital investment. “A lot of things come back to a basic philosophy of cross-use. We don’t want any dark spaces, and a highly appointed spa with all the bells and whistles is not going to be utilized fully for all the resources that are devoted to it. You want a more lean, mean, efficient approach. You can still provide those services, while making sure they’re not wasteful. You just have make adjustments to maximize the cross-usability, tailoring it to the local market and the local demographic.” Pare back the pampering. And speaking of spas… Before 2008, they

were “all the rage,” and operators willingly invested in 20,000-square-foot pampering palaces to draw discerning patrons, says Nejelski. The ingredients have changed a lot since then, and could be pared down even more in the notouch era. “You may have a dry spa where you can get a massage and mani-pedis, but instead of a full hairdresser you may just have an updo station, somewhere patrons can get their hair styled,” he suggests. “We’ve discovered through research, marketing studies and working with clients that women in particular don’t want anyone to cut or color their hair except ‘their person.’” Make trends outperform. Before the pandemic, there was a growing

movement toward so-called “wellness suites.” MGM Resorts was a pioneer of the idea in 2012, when it introduced its Stay Well rooms, complete with air purification systems, aromatherapy, shower heads dispensing vitamin C, “dawn simulation” clocks and healthy menu options designed by the Cleveland Wellness Clinic. But those exclusive suites can do double duty if they’re

A four-seat slot carousel at Miami Valley Gaming, a racino near Lebanon, Ohio

Spaced-Out Gaming The re-design of interiors in the Covid era could allocate former non-gaming space to the gaming floor n years past, it was common practice for casino operators to pack as many slot machines on the gaming floor as possible, in congested rows. But even prior to Covid-19, the industry had started moving toward a more open, inviting player experience. Long rows of machines were replaced with smaller carousel-shaped banks of three, four or five machines, which left more space between machines and more walking space between carousels. From a geometric view, in the past, each machine (including the cabinet and guest’s seating space) was expected to fit in roughly a 3-foot-by-6foot rectangle—not exactly a lot of room to kick back and relax while playing Wheel of Fortune. By figuring in an additional 12 inches to the left and right, plus an additional 12 inches behind the guest seat (upping the machine space to 35 square feet), it creates a greater feeling of openness that allows guests to relax more. It’s like getting that coveted airplane upgrade from coach to first-class. As everyone knows, relaxed guests are happy guests, and happy guests tend to play longer.

AUGUST 2020 www.ggbmagazine.com

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Al fresco dining space at the Four Seasons at Mandalay Bay in Las Vegas

not dedicated for one purpose alone. “One of the things we’re working on and implementing is the use of allorganic mattress materials in all hotel rooms,” with organic cotton sheets, says Nejelski. A guest who wants the full treatment will pay extra for the added accoutrements: mini bars stocked with juices, bowls of organic nuts and fresh fruits instead of candy, and spa-quality lotions and potions. Otherwise, the wellness suite is simply a well-appointed hotel room. Pet rooms with hard-surface floors and easy-clean finishes are also big, because they allow the loyal high-roller customer to bring along little Fido or Fluffy. “This flexibility allows you to calibrate and tailor the guest experience and guest services to create the best relationship with your best customers.” Play to your audience. There’s a saying that all politics are local, and the same is true of hospitality. Non-gaming attractions such as golf courses are “a little bit market-based and generally they’re low ROI, but in some places, like Scottsdale, Arizona, they’re a great amenity, fitting right in with that market and that demographic,” says Nejelski. And remember, integrated resort or not, many adults want their casino to be a grown-up retreat, not Disney World with slots. “There was a period when introduction of a Kids’ Quest education center, an entertainment/day care facility, tried to make casinos more family-friendly,” said Nejelski. “We’ve seen those go away or be really reduced in their impact; they’re not as grand, ambitious and over-the-top as they used to be. They also started to set up an odd dynamic, encouraging families to bring to kids to a casino. We haven’t done one for years.” Go for surefire investments. OK, there may be no such thing given the current economic crisis, but in terms of customer convenience and ROI, “the ones we see enduring are additions of hotel rooms, parking and parking structures and quick-serve food options so people can grab a bite to eat,” Nejelski says. Historically, covered parking garages, of all unsexy amenities, have been known to generate ROI of 49 percent and even more. They make inclement 32

Global Gaming Business AUGUST 2020

A standard king room at the Buffalo Thunder Resort near Santa Fe, New Mexico

weather a non-issue. Pay-on-foot and credit card technologies keep costs to a minimum. Remember your “why.” “Above all, don’t get too focused on the next

new gimmick and add amenities that are out of balance with your core gaming business,” says Nejelski. “You want to make sure you’re maximizing that guest experience, the guest arrival and the time on property. “Amenities are not just a lure to get them to stay. It’s also making that stay more enjoyable and more comfortable, which extends play time.” In sum, narrowly programmed amenities and one-fit, one-use spaces are going by the wayside in favor of those that are more flexible, more changeable, and more accommodating to different needs, Nejelski says. As for the future, “the optimistic way to look at it is that sometimes external forces are a catalyst for change. The gaming industry and the product that comes out at the back end may be an improvement. We prefer to think of this moment as an opportunity.”

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OPERATIONS

The Time Has Come Letting dealers keep their own tips can improve customer service, dealer efficiency and player loyalty By Mike May

ealers keeping their own tips. These five words have spread fear through many a table-games operator. Why? Is it a reference to the past, when dealers in Vegas pocketed their tips during the shift, or to collusion, or to players being hustled to tip whether they wanted to or not? I’m here to tell you: Don’t be afraid. I, too, was hesitant to operate a keep-yourown-table game operation. Twenty-nine years of working in pooled-tip operations in Atlantic City clouded my perspective about dealers keeping their own tips. After 11 years as vice president of table games operations at Pechanga Resort Casino, and a couple of stints as general manager, I quickly saw the error of my ways. We had a successful poker operation where dealers kept their tips, and we had minimal issues. Right from the start, I saw that the majority of people just wanted to work and take care of their families. They came in each day to do the best job possible, not to collude or steal or hustle the players. The dealers wanted to be successful, primarily from an economic perspective. How many of us have watched our best dealers fill up their toke boxes every day, only to have the dealer next to them do everything in their power to keep players off their game? Say goodbye to that daily scenario when your dealers take charge of their own performance, and benefit directly. Here are the positives, and the structure you’ll need to put in place to run a successful keep-your-own operation. It’s not all-encompassing, but these are the basics:

1. Customer service goes through the roof. Dealers are friendlier, engaged, and do an

all-around better job of servicing your players. 2. Game pace improves. You can continue to do analysis and hand counts, but in general, hands per hour will increase exponentially. Sometimes, they deal too fast. 3. Flexibility. If you need to open more games and you don’t have the staff, good luck in 34

Global Gaming Business AUGUST 2020

a pool operation. When dealers keep their own, they’re much more willing to work a longer string, because they know they will benefit personally. 4. Hiring. You’ll rarely have a dealer shortage, as your property will always be inundated with applications. 5. Dealer skills. To run the operation properly, dealers should deal all the games, if possible. They’re more willing to sign up for game training and deal all the games should it be part of the hiring criteria.

The majority of “ people just wanted to

work and take care of their families. They came in each day to do the best job possible, not to collude or steal or hustle the players. The dealers wanted to be successful, primarily from an economic perspective.

”

But no operation is truly perfect, and here are some inherent issues you’ll have to deal with: 1. Game strings must be fair. Certain games generate more tips, and dealers will perceive an unfair advantage if more of those game types are on certain strings. Our response was always to make sure dead spreads were at a minimum. 2. High-limit tables are prime real estate. If they have the skills, all dealers should get the opportunity to deal those games. Jealousy is a common factor, so spread the wealth to keep it to a minimum. 3. Supervisor morale. When they see how much a dealer can make during their shift, this can

become an issue. Though I’m not a fan of the dual-rate position, it becomes a mainstay along with more experienced gaming employees who aren’t interested in dealing. If you can hire parttime floor, they also can be a valuable addition. The following key structures must be put in place to make it a successful operation. These are not all-encompassing; again, just the basics: 1. 100-percent tax compliance. Toke boxes are locked, and only the cage has the key. When going on break, boxes are left in the pits under surveillance cameras, and are cashed out at only at the end of the dealer’s shift, or if it’s too full, which does occur. 2. Weekly reports show what each dealer made in tips. This should be reviewed by the head

of the department and surveillance. It’s a good tool to check for anomalies in how much a dealer made during the week. 3. A percentage of tips must be applied to cover health-care benefits, 401(k), etc. Nor-

mally, the hourly wage will not be enough to cover these expenses and taxes. Most times, the takehome of tips is set up as a 70/30 split, with 70 percent going home with the dealer as cash. You should have flexibility with your payroll system, so dealers can leave up to 100 percent and get a check each week with all their wages included and taxes taken out. 4. Separate cash-out cage. If possible, dealers should have their own cage to cash out their tips at the end of the shift, and at a minimum, their own area in the main cage. It expedites the process and keeps a consistent and private interaction between cage personnel and the dealers. There are many variables that come into play when moving to a keep-your-own operation that will be unique to your property. You must continue to make game protection paramount. A zerotolerance policy of no hustling goes a long way. I can guarantee that when it’s done well, letting your dealers keep their own tips will enhance your customer’s experience and raise the morale levels of your dealing staff.

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Bigger Balls Lottery organizations that operate sports betting do it for different reasons than public companies and casinos. What does that say for the future of the industry? By Roger Gros

hen the DC Lottery launched its long-awaited sports betting platform in June, GambetDC, it listed its even-money bets at -118, a far cry from the industry standard of -110. The diversion from the standard is part of the mission of lotteries when it comes to sports betting. Lotteries are way more risk-averse than commercial sports betting operations. With typical lottery margins of 50 percent on the ball draw games and up to 80 percent on scratch-off tickets, the traditional 5 percent margin—in a good year—is not enough for lotteries. And when they consider actually losing money—in a bad year—that’s unacceptable. There are currently eight states where lotteries either regulate or operate sports betting. While it’s still early in U.S. sports betting history, there have been some disturbing trends connected to these agencies that could torpedo the revenue-raising potential of the industry. Some of those issues include a higher-than-traditional takeout, which may guarantee profitability but will also encourage illegal offshore operations. A reluctance to accept risks also may endanger player loyalty, as risk taking is in the very nature of sports betting operations. Nicole Jordan, the director of marketing and communications for the DC Lottery, says it’s not unusual for lottery entities to be sports betting operators. “The Council of the District of Columbia drafted and passed legislation designating the Office of Lottery and Gaming as the regulator and an operator of sports betting in Washington, D.C.,” says Jordan. “While legal U.S. sports betting was traditionally operated within the walls of a casino and largely restricted to Nevada, it must not be overlooked that an estimated 70 percent of global sports betting operations are run by lotteries. “We’ve hired qualified professionals to oversee the regulatory division and partnered with a vendor that is a global leader in government-sponsored sports betting. The expectation is that the Office of Lottery and Gaming will regulate and operate sports betting in a manner that fosters public confidence and trust in the integrity of gaming operations in the District—an expectation we are meeting and will continue to meet as the sports betting offerings continue to evolve here in D.C.” One of those countries where lottery operators regulate and operate sports betting is France, where the experience hasn’t been very successful. The high takeout encouraged players to continue to bet on illegal websites, and revenues have suffered. A reorganization of the nation’s gaming regulatory system is planning to address those issues. 36

Global Gaming Business AUGUST 2020

Dustin Gouker is the lead analyst for PlayNJ, part of a network of affiliate marketing sites that serve the online gaming industry. He says the lotteries got into a business they didn’t really understand. “In most cases,” he says, “they’re leaving the nuts and bolts to the vendors they hire. But at the same time, as a monopoly, their expectations of profit are higher than they should be.” John English, a partner with Global Market Advisors and a longtime Las Vegas bookmaker, says the lotteries’ goals of specific profits risk painting all legal U.S. bookmakers as uncompetitive. “There needs to be some sort of stability in the sports betting market,” he says. “While there was some disparity in Vegas over the years, we all offered the same -110 bets, so players could be reasonably certain that the operation was respectable.” But apparently, the DC Lottery through GambetDC is charting a course that will guarantee a profit of at least 7.5 percent, according to some experts. Jordan says the lottery has a responsibility to D.C. residents to create that profit. “GambetDC is a lottery-operated sportsbook,” she says. “It’s not designed to pay out like a casino-model sportsbook. In some instances, the pricing will be the same, or better than those offered by the private operators in the U.S. industry, but in most cases our odds/pricing will be higher. Our hold is higher because our mission is to return profit to the District. GambetDC aims at maximizing revenue for the District while still providing competitive pricing and entertainment value to casual sports bettors.”

Cutting Offshore Profits One of the goals of legal sports betting is to minimize the traffic to illegal offshore bookmakers. Gouker says that’s not something that will happen under the terms of the lottery goals. “There aren’t rows of customers coming through the door to bet sports, and there are still established ways to bet offshore,” he says. “Just because you open up through a legal avenue doesn’t mean you’re going to convert all those players to the legal system.” Jordan acknowledges that illegal books are a substantial competitor, and won’t go away overnight. “The notion that regulated sports betting will completely eradicate or eliminate the illegal market is overly optimistic,” she explains. “The illegal market will always have flexibility to out-price and outmaneuver regulated

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States Where Lotteries Operate and/or Regulate Sports Betting Delaware Montana Oregon New Hampshire Tennessee Virginia Washington D.C. West Virginia offerings; however, having a variety of legal, regulated sportbook options in the District puts necessary consumer protections in place, and will move many players out of the illegal markets as well as introduce new players to safe, responsibly run betting.” Gouker says there are fatal flaws that can’t be ignored when a lottery runs a sports betting operation. “Lottery comes into it with a different set of expectations,” he says. “Lotteries are used to running a high-margin business that they can control. As everyone knows, sports betting requires a critical mass, a volume of players that make it work. When you have a small user base and requirements for a higher profit, that’s just not going to work. “The DC Lottery is clearly not competitive with the offshore market, and if you’re betting offshore, I don’t know why you would switch to the lottery.” Other lottery operations are more competitive, Gouker says. “Rhode Island and New Hampshire have competitive lines,” he points out. “Delaware is another ball of wax since they’re not even online yet.” Art Manteris, the longtime leader of sports betting for Nevada’s Station Casinos, says that even in a monopoly situation, bettors will find the best odds. “Sports gamblers in general are pretty savvy,” he explains. “They know the odds. They know the payouts, and particularly in the mobile world have the opportunity to price shop. Operators that aren’t competitive will face some pretty significant challenges.” Manteris says, however, you have to give lotteries some time to sort things out. “Everyone needs to find their own path forward,” he says. “Obviously, there’s no federal solutions that everyone can follow, so it’s state by state. I can’t say that one size fits all or there are not multiple ways to achieve success. Obviously, some states have not achieved success and have to endure some growing pains.” Understandably, Manteris believes states should look to Nevada for the path forward. “We experienced most of these growing pains and addressed them long ago in Nevada,” he says. “We have a great regulatory structure, systems and technology, including integrity monitoring, so I would encourage any state to look to Nevada and how we handle things.”

Player Potential One of the potential problems for lottery operations is that they are more riskaverse than the traditional sportsbook. In Oregon recently, the state’s designated operator, SBTech, delayed accepting a player’s $500 bet on a NASCAR head-

to-head showdown. While the stated odds on that bet were -110, the operator told the bettor that they would only offer -150 odds on his wager. In most states, regulations do not permit operators to change previously stated odds for individual players. Manteris says it would not happen in his state. “In Nevada, regulations mandate that whatever price is publicly posted has to be available for all,” he says. “You can’t intentionally move odds in favor of one guest to ensure that he wins or loses. The price you give to one player has to be available to all.” Jordan says GambetDC is required to weigh the risks carefully before accepting a bet. “Not unlike casino sports books, we (provided by our vendor) have a qualified trading desk and risk managers on our team,” she says. “And also not unlike casino sportsbooks, the operator will not accept a bet if the risk is too great.” It’s true that casino sportsbooks can reject a bet that is over published limits, but the Oregon situation was within those parameters. Manteris says casinos in his state often allow bettors to wager more. “Limits can be altered for players, but the odds would have to be the same,” he says. Gouker says lotteries may feel they have the latitude to make these kinds of decisions. “When you’ve got a virtual monopoly, you may feel like you’ve got the only show in town, so the players have no options,” he says. “But of course they do if they know how to bet illegally.” GMA’s English believes that these kinds of decisions are not good for the overall U.S. industry. “It really gives all of us a black eye,” he says. “When players can be treated so cavalierly it casts a pall over all the good operators at the same time. But it’s still early in the sports betting history in the U.S., so hopefully they’ll come to understand that those kinds of decisions are not good in the long run.” Although GambetDC is a monopoly across D.C., Jordan says partnerships with bars and restaurants in the city, as well as the city’s professional sports teams, will provide bettors with a diversity of products. The lottery has already made an arrangement for a sportsbook to be operated at Capital One Arena, the home of the NHL’s Capitals and the NBA’s Wizards. “The Office of Lottery and Gaming serves as the regulator of privately operated sportsbooks, licensing operator and supplier applicants and monitoring their operations for compliance with District and federal laws,” says Jordan. Manteris says casino sportsbooks have attempted to keep pace with the lotteries by designing big payoffs on exotic bets. “There has to be incentive for the customer to play,” he says. “If you’re talking about multi-leg parlays with progressive jackpot opportunities, there has to be a compelling reason for the players to bet. We think we satisfy all those desires in Nevada. We think we know what the consumer wants, and try to offer some big payout opportunities similar to the lottery jackpots. There is a place for the longshot player, but we also appeal to the savvy, sophisticated player. Sports betting is a very low-margin game and there are players that want to take advantage of that, but there are also players that want to hit the grand slam.” AUGUST 2020 www.ggbmagazine.com

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FRANKLY SPEAKING by Frank Legato

Back to Sin City

his month will mark my first extended casino-hotel stay since February, a month which, as we all know, occurred in the former universe. Here in this parallel universe, I will now have to mask up, grab my clean-hand juice, and confront my fears to do my normal summer task, which is visiting all the slot manufacturers to view all the games they have on tap for 2021—when, hopefully, we’ll all be in yet another parallel universe. One that doesn’t, you know, suck. Mostly, I’ll be meeting with all my slot-making buddies in Las Vegas for a week, about which I have no fear. The inperson meetings I’ve had so far since the industry began to de-thaw have been perfectly safe, mask-equipped interviews in business offices that are as protected as any indoor space against the spread of the you-know-what. They’re sure safer than Walmart, I’ll tell you that. What sends chills up my spine is the prospect of traveling in a total of four pressurized sardine cans to complete the trip. It’s four, because I had to pick an airline that’s still blocking off seats to permit social distancing, so I have to do connecting flights. The airline that I normally use is again packing as many humans as possible into a tin can to breath each other’s vapors for five hours. I won’t identify it, but it’s the only airline with direct flights between Philadelphia and Las Vegas that is named American Airlines. I know, I know. The jury’s still out on just how effective against the you-know-what leaving space between passengers is. All the same, I’m guessing it’s safer not to have a large man three inches away snoring in your face during a flight. I’m a little less apprehensive about the place I’m staying, which is the place I always stay, miles away from the petri-dish Strip at the South Point on South Las Vegas Boulevard. It’s going to be different, for sure. My favorite restaurants are closed, and I’m still a bit leery about indoor dining in any event. I’ll probably do a lot of take-out from the burger joint, outside pizza delivery and room service, to be honest. Well, and Mexican food, if they open up Baja Miguel’s. I called the slot director at the South Point, Cliff Paige, to get the

Global Gaming Business AUGUST 2020

down-low on what it’s been like there since they reopened with safety guidelines in place. He said everything’s been going super-smooth, with all areas of the casino constantly cleaned and sanitized, and “hyper-critical” areas such as food and hotel rooms deemed “mission critical.” Cliff tells me the food outlets are the cleanest spaces in the casino, which is good, because I can’t survive a casino stay without the coffee shop. I’ll be able to play my favorite games in the casino as well, he assured me. Even though every other machine is disabled for social distancing, they have so many Game King units with 8/5 Bonus Poker there that there will be no problem finding an open machine. I just hope one of them is my lucky machine. It’s across from the blackjack pit, and I’ve hit seven or eight royals on it over the years. Not that I’m superstitious or anything. Cliff also surprised me that my other favorite game, craps, will still be available at minimums as low as $5. There will be half the positions available as normal— again with the social distancing—but then again, there are only half the people in the hotel as in that old, preyou-know-what universe. It’s a testament to South Point owner Michael Gaughan that $5 tables are still open to play, with only half the positions active. He can’t be making money on those tables, but he’s in the business of keeping long-term customers, and he knows how to do it. Of course, in the old days (as in, February), I would save time by eating at the buffet once or twice during the week. Those days are for-sure gone. Heaps of community food and sneeze guards are definitely out of vogue at this point. But I’m told the sports bar by the sportsbook is open with safety precautions, and when I stay there, real American professional sports will actually be playing. So at the very least, I’ll have video poker, baseball, hockey and liquor. Yeah, I’ll be just fine. In the end, my only real concern is the flying. But I’ve got a really, really good mask. It covers my entire head. Not really, but it’s pretty good. So, tally ho and happy landings!

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Signs of the Times In the Covid-19 era, digital signage has enabled businesses to stay in constant touch with customers, advise them about changing regulations, send out optimistic messages, and point them to the hand sanitizer and toilet paper By Dave Bontempo

elaware Park, which operates a casino and racetrack in Wilmington, became the industry’s first sporting facility to allow spectators on June 17, with limited capacity. Five days later, Hollywood Casino at Charles Town Races in West Virginia, another casino-racetrack combination, followed the measure. The Atlantic City casino industry opened July 2, with specific limitations. So did Monmouth Park racetrack in Oceanport, where New Jersey’s first legalized sports wager was made and where a William Hill sportsbook now operates. The track opened to bettors on July 2 and its live race meet began July 3. In all these cases and many more, patrons JCM Global chooses Analog Way’s Aquilon C+ relied on signage to adapt to changed gaming to drive three rooms of displays at New Desert environments. Several thousand patrons enDiamond West Valley Casino tered the casino and racing premises, all needing guidance on new, abruptly changing rules. “There’s also a new product JCM represents that solves the current soSignage reminded people of personal safety requirements like masks and cial distancing and capacity-limiting needs of our customers in the Covidtemperature checks, as well as: 19 period,” he adds. “It utilizes a camera and LED display to manage the • Where the 6-foot social distancing markers are inflow and outflow of customers. The camera is connected to an indicator • Where entry lines start that flashes a green light when it is OK to enter and a red light when a cer• That, in many cases, two of every three slot machines or horse-betting tain area reaches capacity.” terminals are disabled Smith says JCM is continuing to roll out new signage products. • Which entrances and restaurants are open or closed (Delaware Park, for “We offer flat, curved and cube displays, and the applications are only instance, allows indoor dining, but at press time, New Jersey casinos did not) limited by your imagination.” Some recent installations include Desert Diamond West Valley in Glendale, Arizona, where the company installed digital signage solutions in Digital signage keeps everyone in a jurisdiction on the same page, even as reguthe sports bar, poker room, bingo room and stage; MotorCity Casino in lations vary throughout neighboring states. Detroit, with an 80-foot curved ceiling above the promenade; Resort “The racetrack example is one of the best aspects of digital signage: operaWorld New York, with a 21-foot diameter (67-foot circumference) doubletors can use them for whatever messaging they need, wherever they need it,” sided 2.5mm Direct View LED digital signage above the recently expanded says James (Smitty) Smith, product manager, audio visual for JCM Global. electronic table games area; and a new installation at Choctaw Casino in “That could certainly include messages about where to stand or simple Durant, Oklahoma. wayfinding signage.

‘Stand There, Not Here’

Global Gaming Business AUGUST 2020

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80-foot curved ceiling at MotorCity Casino in Detroit

JCM signage at Resort World New York

Each of these installations required JCM to collaborate with a range of contractors to meet the customer’s unique goals. Many of these innovations reflect what was already unfolding in the gaming market, Smith adds. Unfolding? Yes, the sector has been evolving for a long time.

Signage Evolution In the gaming world, signage was initially used for wayfinding, messaging, show information, menus and casino specials. Through varied forms, it was a well-lit, brightly displayed advertisement, a digital casino host with constantly shifting information. Signage served as a de facto employee, and its influence grew. Signage now dominates lobbies, helps to brand establishments, directs customers and even boosts employee morale when used in-house. “This has been an interesting journey for properties, and one that has had positive results for them and for their guests,” Smith says. “Casinos have migrated to digital signage from a backlit Duratrans (printed sign) that may have been at the casino entrance or at the end of a slot bank. That migration has allowed operators to communicate with their guests in more meaningful and entertaining ways. “What was once a still, static image in a box is now a fully realized video that can communicate several different messages, rather than just one. As a consumer, imagine the difference between seeing a still image of a show and seeing video for that same show. The video is significantly more impactful. What started with the first big sportsbook screen at MGM sparked a trend that has grown into a mix of different signage types at properties of all sizes.” The re-emergence of businesses compounds the signage role. JCM has utilized several partners in recent years. One of them, Analog Way, has made quite a footprint in this space.

A Strong Presence JCM Global and Analog Way joined forces to bring cutting-edge LED video displays to casinos across the country, the latest being at the new Desert Diamond West. JCM engineered a digital signage solution utilizing two fully loaded Analog Way Aquilon C+ 4K/8K multi-screen presentation systems and

“What was once a still, static image in a box is now a fully realized video that can communicate several different messages, rather than just one.” —James (Smitty) Smith, Product Manager, Audio Visual, JCM Global video-wall processors to drive displays in Desert Diamond’s Winners Sports Bar, bingo room and poker room. Analog Way’s Aquilon C+ is a fully modular and scalable 4K/8K multiscreen presentation system and video-wall processor with up to 24x 4K60p inputs and up to 20x 4K60p outputs. Like all the products in the LivePremier series, Aquilon C+ combines industrial-grade reliability, unrivaled ease of use, versatile 4K digital connectivity, unmatched real-time 10/12-bit 4:4:4 video processing power, best-in-class image quality and pure 4K 60p on each input and output with ultra-low latency, the company says. The Winners Sports Bar features a four-sided hanging LED video display comprised of JCM’s MAX-S 1.9mm LED panels plus a separate 19.7 x 11.5foot MAX-S 1.9mm LED video wall. The bingo room has a wall-mounted 16.5 x 9.8-foot MAX-S 2.6mm LED video wall, while the poker room is outfitted with four 2x2 Samsung monitor walls. “The casino needed to drive multiple narrow pixel pitch LED walls, which are very immersive and make a statement,” says Brian Smith, southeast regional sales manager for Analog Way. “It also wanted to be able to recall different presets at the touch of a button and have instant seamless transitions. “Aquilon C+ was chosen to mix high numbers of inputs combined with a high window count: The Aquilon units process 24 inputs of video from a variety of sources, including satellite TV, local marketing content from an existing media player and still images.” Using the same infrastructure, all outputs to the bingo and poker rooms had to cross the entire casino floor at around 1,000 feet, he says. “Lightware AUGUST 2020 www.ggbmagazine.com

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PointsBet live signage in Detroit Tigers’ Comerica Park

DraftKings Sportsbook at Del Lago Resort and Casino signage by Analog Way

fiber transmitters and receivers were chosen to drive the signal to the far rooms and provide them with windowed content for ultimate flexibility.” For Desert Diamond, JCM selected Analog Way’s Aquilon C+ for a number of reasons, “including its flexibility to manage high volume of inputs and screens,” according to Dave Kubajak, JCM Global’s senior vice president of sales, marketing and operations. “At the casino, our digital signage solutions help the property connect with their players through dynamic, original content. With Analog Way’s responsive equipment, the customer has the flexibility to display numerous custom presets with multiple live video feeds.” Analog Way, meanwhile, found additional synergy within the sports-betting space. The Aquilon C+ Processor is a major component utilized in the DraftKings Sportsbook at Del Lago Resort and Casino in Waterloo, New York, a 6,000square-foot space offering sports fans an innovative, high-tech sports betting experience. It features LED video walls driven by an Analog Way Aquilon C+ processor. The installation, in the Finger Lakes region of New York, marks the first sportsbook with an Aquilon C+ for mission-critical, 24/7 365 operation of a large, multi-layered pixel space. The main displays in the DraftKings Sportsbook at Del Lago are 2.6mm Unilumin Direct View LED video walls. The largest screen measures 44.29 by 14.9 feet while an adjacent screen is 19.8 by 14.9 feet. Aquilon C+ performs all the scaling, windowing and seamless switching for these two-pixel spaces. Content sources include DirecTV and streaming platforms, which allow fans to watch live event coverage of myriad sports. Logos and graphics fill the video walls during event downtimes. Force Technology Solutions, LLC (Force Tech) in Greenfield, Indiana recently completed one of the first Analog Way Aquilon installations in the U.S., and the first in the Midwest at the new Sportsbook at French Lick Casino. Aquilon drives two large LED video walls in the venue, where customers can place bets on sporting events or just lounge and enjoy the ultimate in big-screen sports viewing. The new 3,000-square-foot space accommodates 100 guests who can wager on football, basketball, baseball and more.

Mixing Messages In response to the Covid-19 pandemic, with health, safety, protection and wellness being at the top of everyone’s minds, Baltimore, Maryland-based Gable Company has developed a suite of protective solutions to help its clients get their properties ready for the new normal. GableGuards Protective Solutions include custom floor and wall graphics, protective shields and protective dividers. Digital solutions include Wellness Scanners, Digital Display Sanitizing Stations, Digital A-Frame Displays, and Digital Window Posters. 42

Global Gaming Business AUGUST 2020

Digital Window Posters deliver the ability to show dynamic content inside and outside thanks to the double-sided display. “Side A” faces outside and “Side B” faces inside, so operators can grab customers’ attention coming and going. Digital A-Frame Displays show dynamic content on mobile hardware. The units can be accessed remotely and battery-powered to create a portable messaging center. The high-brightness display can show safety alerts, health awareness, paid promotions and brand advertisements, as well as any new procedures the property may implement. Wellness Scanners minimize the risk of infection by checking the temperature of visitors at entryways. This unit uses automatic facial detection paired with a touchless temperature scanner to quickly recognize potentially healthy or unhealthy visitors. Digital Display Sanitizing Stations deliver relevant information to guests while keeping their hands clean. The easy-to-use CMS allows operators to send the right message at the right time with day-parted content. Casinos can remotely deploy digital content from web browsers, videos, images, HTML web pages and scrolling text messages.

Other Uses, Other Venues While businesses endorse safety products, they retain an eye for digital signage’s penchant to drive revenue. That’s why it emerged in the first place. Several companies have noted casino use of signage and extended the concept to their own facilities. Large screens near elevator banks may display products employees worked on, instilling company pride. Wayfinding capabilities include group meetings and what’s on the employee cafeteria menu. In the sports-betting world, PointsBet took the concept one step further in early July. It announced a partnership deal with the Detroit Tigers, becoming the first sportsbook to team up with an MLB franchise. Among the benefits: live signage in Comerica Park for the upcoming season. PointsBet branding will be on the primary scoreboard and right-field wall. The agreement has numerous facets, including sponsorship on all Detroit Tigers digital platforms. But the signage, on the scoreboard, boldly defines the partnership. The PointsBet and coronavirus-driven use of signage display its versatility. On one extreme, it’s “Be safe.” On the other, it’s “Play ball.”

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EMERGING LEADERS Sports Super Fan Max Meltzer Chief Commercial Officer, Kambi ax Meltzer loves sports. He’s a season ticket holder for the Crystal Palace in the English Premier League. So it comes as no surprise that Meltzer began his career as a sports agent. “I am hugely proud of what I achieved with Simply Sport, having devised the business plan through to signing players like Oliver Burke,” he says. It’s also no surprise that he went from repping athletes to working with companies involved in sports betting, first with Press Association and now with Kambi, where he serves as chief commercial officer. “Kambi combined two of my greatest interests, sports and technology together,” Meltzer says. With Kambi, Meltzer leads sales teams with a focus on partnering with tier-one bookmakers and casino companies, leaders in the field, such as Penn National Gaming and Rush Street Interactive. “I oversee the planning, organization and execution of Kambi’s commercial strategy, including sales and customer retention strategies,” says Meltzer, whose career received a boost from one mentor in particular. “The one person in our industry who has contributed hugely to my leadership style is Andrea Owers, who is now at Sportradar. She was my original manager when I joined Press Association about six years ago,” says Meltzer, who received a bachelor of arts in business and a master of laws, both from the University of Durham. From Owers, Meltzer learned about setting clear targets, trusting in the ability of a team to deliver and giving guidance when needed. “She elevated my own leadership capability through her demonstration of what a good leader is,” he says. Owers’ influence speaks to the need for more women in the field, he says. “We would be a better industry if we spent more time looking at and investing in the diversification of the workforce.” The coronavirus pandemic has had little impact on Kambi’s operation, thanks to an increased interest in games such as table tennis and darts. “Kambi has been trading these sports for a long time. The diversity of our offering and the sports we trade is a key string in our bow and has meant that our revenues have not been as exten-

“The sports betting Kambi provides to our U.S. partners is hugely advanced, informed by and benefitting from 20 years of experience across Europe and Latin America.” sively hit as others in the sector,” says Meltzer, who relaxes by playing golf. Kambi posted revenue growth of 33 percent in Q1, in spite of the lack of major sports from midMarch. And now, major competitions are returning to action, he says. But compared to the U.K., the sports betting market in the U.S. is still in its infancy. “This doesn’t mean the technology is in any way primitive,” Meltzer says. “The sports betting Kambi provides to our U.S. partners is hugely advanced, informed by and benefiting from 20 years of experience across Europe and Latin America.” The future for Kambi will be invested in large measure in the U.S., he adds. “As we continue to build out our Philadelphia office, it will be our American employees who help us innovate. I believe some of the most amazing innovation in relation to sports betting will emanate from the U.S.” While the sports betting industry seems extensive at first glance—particularly with the addition of the U.S. market—it can be quite small, Meltzer says. For that reason, he adds, “my advice to those getting this into the industry is to really value every single contact you make. The contacts are likely to assist you in one way or another later on.” —Bill Sokolic AUGUST 2020 www.ggbmagazine.com

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Starting Tomorrow, Today Allen Schultz Director of Slot Performance, San Manuel Casino ith a stacked school workload, a robust personal life, and a mundane hourly job that was merely a means to an end—the “end” being college—Allen Schultz was the typical high school senior. He dreamed of the day that, instead of being a food runner at a casino, he would have a “real” career as a graphic designer. Then his supervisor posed a question that would change his life: “Have you ever considered a career in the gaming industry?” And so began his career at San Manuel Casino, where he has worked for 20 years. Starting at such a young age certainly brought its challenges, not the least of which was being taken seriously by his colleagues. Maturity and personal growth took time as well, but Schultz was fortunate enough to work with patient mentors. “I’ve had great leadership along the way, with mentors who guided me to where I am today, and my wife who kicks me into line when needed,” Schultz remarks. Eventually, Schultz realized that his colleagues viewed him in a leadership role. That epiphany was the most meaningful of his career. The gaming industry is rapidly changing, creating opportunities for Schultz and his team to extend their roles outside of the norm. His skill set has become well-rounded, with more diverse responsibilities in the slot realm. Ironically, being his own worst critic helped Schultz adapt his approach and grow in understanding of people, forming in him a positive leadership style with lucrative

Fantasy Career Brandon Loeschner Partner, National Practice Leader Gaming Services, RubinBrown randon Loeschner saw a chance to be more than a faceless numbers-cruncher when he joined RubinBrown, the accounting firm where he is a partner in the National Practice Leader-Gaming Services Group. The organization is rich with history and entrepreneurship, he says. “I’ve been able to meet the founders, work with their sons and have an opportunity to be a part of the next generation of leadership working on the evolution of the firm’s national expansion. Where else can you get those opportunities?” Born in Highland, Illinois and raised in Ferguson, Missouri, Loeschner joined the firm in 2001, after graduating from Maryville University of Saint Louis with a B.S. in accounting. He saw dynamic changes coming, with gaming expansions, new technology, server-based gaming, CMS innovations and iGaming. Add the recent proliferation of sports betting throughout the U.S. to the mix. He and his partner Daniel Holmes started the gaming services group in 2013. “As a certified systems information auditor and CPA, the crossroads of information technology and accounting are where I enjoy work, and the gaming industry is in that sweet spot for me,” he says. He hustles and grinds every day to build the brand. “You don’t get to wake up and say, ‘I want to build a national practice in the gaming industry,’ and it just happens,” says Loeschner, who likes to cook with his wife, Laurie, for relaxation, and enjoys the couple’s increasingly rare getaways.

Global Gaming Business AUGUST 2020

business tactics. He looks back fondly on his and his team’s ability to tackle new projects and rise to each new challenge. As for the future, Schultz sees casino gaming lagging behind other industries in its technological advancements. Cashless gaming, mobile gaming, augmented reality and other buzzworthy technologies are in their infancy in the gaming sector, often due to the regulations required to keep players and their money safe. This is where younger professionals in gaming play a key role, because they’re fluent in the use and language of technology, and able to adopt it more actively. Schultz firmly believes that a greater understanding of technology is critical to implementing it in professional environments. He also sees the value in making—but not repeating—mistakes, and learning from them. He encourages the next wave of gaming professionals to take on more responsibility, even when it can be daunting. Schultz knows how fortunate he is to be with a company that prides itself on good business decisions and great leadership. He and his staff stay energized and focused, eager to aid the up-and-coming talent at San Manuel. His advice? “Knock one thing out at a time, and do it well. Make promises you can keep, and do new things.” — Marie Casias, Manager, Marketing & Administration, The Innovation Group

Loeschner’s job includes taking care of current clients, expanding relationships with new clients and developing a specialized team. “I bring specific experience with gaming compliance that includes adjusted gross receipt audits, financial statement audits, minimal internal control standards and system assurance for sports gaming applications,” he says. This spring, Loeschner dealt with the unexpected impact of Covid-19. “Casinos were closed and sports were canceled, all of which affected my clients in unprecedented ways. The brick-and-mortar clients were impacted the hardest with the state-mandated closings.” Working with executives of the Fantasy Sports & Gaming Association, of which he is a member, “has helped me better understand these issues,” he says. Early in his career, Loeschner had to deliver a challenging message, a task that did not go well. “I learned a lot about organizational behavior, the power of stories, preparation, perspectives and perseverance. It was a pivotal time for me and forced me to take a hard look at myself and my goals. I was lucky to work with leaders and mentors through this obstacle,” says Loeschner, who plays in a men’s basketball league to unwind. Loeschner has had positive relationships with several mentors, particularly Matt Rogers, former athletic coach at Maryville; Chelle Adams, chief financial officer at the Cosmopolitan of Las Vegas; Michael T. Lewis, CEO of MTL Consultants; and Bryan Keller, partner-in-charge of the Real Estate Services Group at RubinBrown. “All have had a major impact on my personal and professional life,” he says. “Each of them is good at challenging me to be better. Their lessons will stick with me until I retire.” At some point, Loeschner may mentor someone coming up. He has his own words of advice. “Invest in yourself with experiences outside of finance and the industry. Many of the most innovative ideas I have brought to clients originated from experiences outside of my role at RubinBrown.” —Bill Sokolic

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Diversity in Finance Teri Chan Palomaki Vice President of Finance, Scientific Games he coronavirus pandemic has taken a major toll on the casino industry in general, and Scientific Games in particular. Teri Chan Palomaki, vice president of finance, has been in the middle of the action. “We’ve enhanced our efforts exponentially, because we’re constantly monitoring and forecasting around the clock to predict what the return of the industry will look like,” Palomaki says. Palomaki didn’t bargain for Covid-19 when she joined Scientific Games in 2015, after years with Caterpillar, Alexian Brothers Health System and others. “We have a heightened focus on all health and safety policies and protocols,” she says. “We’re being very cautious at every stage in order to keep our essential, on-site employees as safe as possible.” Despite the pandemic, Palomaki says she likes where she is. “Nothing against track-type tractors or stainless steel implants, but analyzing tables, slot machines, online casino, lottery tickets and systems is fascinating.” Still, her prior work experience provided a foundation of financial practices and reporting. “I worked in corporate treasury during the 2008 financial crisis, and I developed significant crisis management skills which helped tremendously during the pandemic,” she says. She also gained firsthand exposure working with executive offices and leading forecasting and budgeting processes after moving into the health care industry, says the Chicago native, who got a bachelor’s in finance from Bradley University in Peoria.

“It was a dynamic work situation, helping clients implement new systems and create management reporting packages. Each of the company’s unique financial needs provided a good backdrop on how to approach opportunities at Scientific Games following several acquisitions,” says the diehard Cubs fan. In her role, Palomaki is responsible for financial planning, management reporting and analyses. She recently took on the facilities department. “I’m proud to lead a team that handles day-to-day facility operations, our real estate portfolio and environmental health and safety. This provides me with the chance to learn even more outside of finance, while mentoring teams to have autonomy.” That includes working on diversity efforts. Palomaki has addressed the Women’s Leadership Series at Scientific Games. Such discussions prove valuable for employees of all genders, backgrounds and career levels, she says. Palomaki believes she was fortunate to have strong mentors throughout her career. Scientific Games’ previous chief financial officer, Michael Quartieri, was supportive and allowed her to capitalize on opportunities within the company. “By giving me stretch assignments, he helped me showcase my talent and strategic vision. These opportunities proved I was capable to hold the role and responsibility,” says Palomaki, an avid tennis and poker player (“Poker allows me to factor odds and probabilities”). Attending Global Gaming Women conferences, Palomaki worked with Debra Nutton, retired executive vice president of casino operations for Wynn Las Vegas and Encore, and Ann Simmons Nicholson, president and founder of the Simmons Group, both of whom provided great advice as she navigated her career. She has a word of advice for others coming into the industry. Be nimble. Be open-minded. Be optimistic even during a crisis. And have fun. A great attitude will open up doors for collaboration. “Finance can be stressful 90 percent of the time,” she says, “but that positive attitude will impact your team, their performance and morale in a significant way.” —Bill Sokolic

AUGUST 2020 www.ggbmagazine.com

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NEW GAME REVIEW by Frank Legato

Diamond Trails Konami Gaming

his symbol-driven progressive series by Konami, featured on the company’s jumbo cabinets KX43 and Concerto Opus, gives players a unique instant credit prize feature while they work toward linked and stand-alone jackpot opportunities. There are two inaugural base games, called Ocean Winnings and Safari Winnings, both five-reel games available in payline configurations of five, 10, 25, 50, 75 or 100 lines. Throughout game play, diamonds stretch up across the top of the screen, in a display that leads up to two fixed jackpots ($10 and $50) and two progressives, resetting at $500 and the Supreme Jackpot of $10,000. When any four or more diamonds are collected on the primary reels, it triggers the Diamond Trails feature, in which players have a chance to claim instant credit prizes from the diamonds stretching up above the reels, reaching higher amounts as the player

advances to higher diamond levels, up to potential jackpot prize opportunities. The Diamond Trails feature consists of free spins, in which diamonds on the reels reveal progressively higher jackpots behind the diamonds on the top display, leading up to the jackpots. The feature continues until either no free spins remain or until all four jackpots are awarded. There is a separate free-spins feature, in which three, four or five bonus symbols trigger six, eight or 12 free games, respectively. Manufacturer: Konami Gaming Platform: KX43, Concerto Opus Format: Five-reel video slot, five to 100 paylines Denomination: .01, .02, .05, .10, .25, .50, 1.00, 2.00, Multi-denom Max Bet: 25, 50, 125, 250, 375, 500 Top Award: Progressive; $10,000 reset Hit Frequency: 34% Theoretical Hold: 6%-15%

Dragon’s Jackpots AGS

his five-level progressive game is designed to take maximum advantage of the 8-foot-high Orion Rise cabinet, with its 55-inch 4K Ultra HD LCD portrait monitor. The base game is a fivereel video slot in the PowerXStream series, which is a scatter-pay format featuring 243 possible ways to win on each spin. There are three bonus features, each of which can ultimately lead to winning one of the five progressive prizes, the top Grand prize resetting at $10,000. A special symbol landing on the third reel triggers the Tower Feature. The portrait screen displays a tower of four bonus awards under a “golden scroll.” The game randomly awards one of the tier credit awards, or the golden scroll. If a credit tier is awarded, the player has the option to take the award or risk it for five times the award or a lower award. If the golden scroll is awarded, the Jackpot Feature is triggered. The Prosperity Bonus is triggered with three scattered bonus symbols in the base game. The same tier display as the Tower Feature appears, but with five tiers instead of four, plus the golden tower. One free spin is initiated. If the bonus symbol appears on the third reel it will upgrade one of the five tiers or initiate the Tower Feature. The free spins continue until one of the tiers is awarded or the Jackpot Feature begins.

Global Gaming Business AUGUST 2020

The Jackpot Feature reveals five reels on the golden scroll. If there are no upgrades from the Prosperity Bonus, only the first reel is active. With one upgrade, two reels are active; with two upgrades, three reels; with three upgrades, all five reels. The first reel always awards one of the five progressives, but additional progressives can be won on the other active reels as well. Manufacturer: AGS Platform: Orion Rise Format: Five-reel, 243-ways-towin video slot Denomination: .01 Max Bet: 750 Top Award: Progressive; $10,000 reset Hit Frequency: 29.85% Theoretical Hold: 8%-18%

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Emperor’s Tree, Emperor’s Frog Everi Holdings

hese twin games are available on either Everi’s Empire MPX cabinet or the sleek new Empire Edge, which features graphics that lead to the edges of the 42-inch portrait monitor for a striking display. The base games are five-reel ways-to-win video slots with a unique 3-4-5-4-3 reel array—three symbols on the outer reels, four on reels 2 and 4, and five on the middle reel. This reel configuration yields 720 possible ways to win on each spin. Central to the primary game are “double symbols”—symbols in a single space that count as two symbols. This enables a pay schedule with wins rising to nine of a kind. The dual symbols can appear on any of the five reels. In a mystery feature, wild gold coin symbols can expand up to three spots on a reel. The free spin bonus offers a choice of four different volatilities, with alterations of the reel configuration and player choice of the number of spins—fewer spins with higher

potential wins or more spins with a lower win potential. There are five progressive jackpot levels, with resets in the penny version ranging from $20 to $3,000. The prizes are won through the Progressive Pick Bonus. The reels disappear to reveal a field of 17 gold coins. The player is prompted to pick coins, and if a pick reveals the title symbol—a tree or a frog—the lowest progressive is eliminated from the field. The player picks until matching three progressive symbols to win the corresponding jackpot. Manufacturer: Everi Holdings Platform: Empire MPX, Empire Edge Format: Five-reel, 720-ways-to-win video slot Denomination: .01, .02, .05, .10, .25, .50, 1.00, 2.00, 5.00, 10.00, 20.00, 50.00, 100.00 Max Bet: 880 Top Award: 633,600 credits at max bet Hit Frequency: 23.28%-27% Theoretical Hold: 4%-16%

Coin Collector: 5 Guardians Aruze Gaming

his game on Aruze’s new Muso Triple-27 cabinet features a mystery four-level progressive and varied bonus features. The base game is a five-by-four format (five reels, four rows each) available in configurations of four, 25 or 50 paylines. Randomly in the primary game, a “Mystery Symbol” on the reels changes to any of 14 other symbols, including wilds, after the reels stop spinning. Multiple Mystery Symbols on the reels change to the same symbol, promoting large wins. The progressive jackpots are mystery prizes, which occur randomly as a “Jackpot Surprise” feature. When this feature appears, one of the four prizes is awarded—static bonuses of $10 (Mini) or $50 (Minor), or progressives resetting at $500 (Major) or $5,000 (Grand). There are two different free-spin bonuses. In “5 Guardians,” green bonus symbols appearing on three or more consecutive reels each display a number, and the accumulated numbers translate into how many free spins are awarded. “Dream Collector” is a persistent bonus that is the

central feature of the game. Six or more scattered coin symbols lock into place for three free spins. Each coin symbol displays a bonus credit amount that is awarded at the end of each spin. Any subsequent coin symbols locks in place, returning the number of remaining free spins to three. The bonus continues until either all free spins—a potential total of 200—play out or coin symbols fill all 20 spots on the reel array. Filling the array with symbols awards the Grand Jackpot, plus all the accumulated bonus awards. Manufacturer: Aruze Gaming Platform: Muso Triple-27 Format: Five-reel slot; four, 25 or 50 paylines Denomination: .01, .02, .05, .10, .20, .25, .50, 1.00, 2.00, 5.00, 10.00 Max Bet: 40, 250, 500 Top Award: Progressive; $5,000 reset Hit Frequency: Approximately 30% Theoretical Hold: 3.59%-14.59%

AUGUST 2020 www.ggbmagazine.com

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GOODS&SERVICES NEVADA OKs CASHLESS TRANSACTIONS

G2E CANCELED, ICE DELAYED DUE TO COVID-19

he two largest trade shows in the gaming industry took a hit last month as a result of the Covid-19 pandemic. The American Gaming Association (AGA) announced the cancellation of this year’s Global Gaming Expo (G2E), the industry’s largest annual trade show and convention, due to the Covid-19 pandemic and the travel restrictions that resulted. The organizers plan to hold a series of virtual G2E events throughout 2020. The event had been planned for October 5-8 at the Sands Expo and Convention Center in Las Vegas. The next G2E is now scheduled for October 4-7, 2021 at the same location. A week after the G2E announcement, ICE Totally Gaming, owned by Clarion Gaming, revealed it was moving from early February to April 22-26, 2021 at the same venue, ExCeL Centre in London. Kate Chambers, Clarion managing director, acknowledged that “doubt and nervousness” caused the delay. “While the world is likely to be in a much better place in April 2021, I’m certain that we will experience more bumps in the road,” she said in an email. “However, I’m confident that with the ongoing support of the ICE London and iGB Affiliate communities as well as the dedication of the Clarion Gaming team, we can navigate those challenges and deliver events that all sectors of the international industry want and need.” AGA President and CEO Bill Miller commented, “In light of continued uncertainty around a viable marketplace at a physical G2E show, global travel restrictions, and currently unknown guidance on large public gatherings this fall, we have come to the unfortunate conclusion that we simply cannot hold an in-person G2E this year. “Health and safety have always been our top priority, and the uncertainty created by the ongoing pandemic makes this the prudent decision ahead of critical deadlines for exhibitors planning to participate.” Miller said it was also a financial decision. “The timing of this decision is intentional, as show exhibitors and attendees alike were facing critical, and in some instances costly, deadlines related to their participation,” he said. “I hope this

Global Gaming Business AUGUST 2020

helps to alleviate that pressure.” Other deciding factors may have been Nevada’s current ban on gatherings of more than 50 people; typically, nearly 30,000 people from all over the world attend G2E. And with travel restricted to and from Las Vegas (some 16 states now order visitors from Nevada to selfquarantine for 14 days), as well as international transportation disruptions, there were many reasons to make this decision. Several other gaming conferences have also been canceled this year, including the National Indian Gaming Association conference in San Diego, ICE North America in New Orleans and the International Center for Responsible Gaming’s (ICRG) Conference on Gambling and Addiction, which normally takes place concurrently with the G2E. The ICRG conference has been “reimagined” and will be offered in five separate online seminars through October. ICRG has announced that it will revamp its conference as a virtual event to “focus on conveying meaningful program elements online so the world’s network of clinical, research, and industry experts can continue to collaborate virtually,” according to the organization. ICRG made its decision based on feedback from attendees. Board Chairman Alan M. Feldman stated, “The virtual conference will continue the ICRG’s tradition of connecting stakeholders with cutting-edge research on gambling and addiction.” Also canceled is the World Game Protection Conference (WGPC), which had been postponed from March to October in the hopes of being rescheduled during the calendar year. The annual conference draws hundreds of attendees from around the world to discuss the latest security and surveillance technology, the evolution of slot cheating and other security threats to the industry.

t’s “all systems go” in Nevada after the state Gaming Commission took the first baby steps toward establishing a cashless wagering process when it changed and approved several regulations. The prohibition against using such systems was the first to go, which opens the door to beta tests for systems developed by various manufacturers. The commission Nevada Gaming unanimously approved Commission Chairman eight regulations that will John Moran make it easier for players to establish accounts, create e-wallets and buy tickets to gamble at the state’s slot machines. The tickets, such as Everi’s QuikTicket, are purchased at kiosks with a set amount and can be used at slot machines and tables, and maybe later restaurants and retail. “It’s a monumental first step in cashless wagering systems,” Commissioner Steve Cohen said. Acting Commission Chairman John Moran said the changes will be good for the industry and for the patrons, saying it will “enhance the gaming experience.” Direct transfers from patrons’ bank accounts to gaming machines will still be prohibited, but several systems envision transfers to a second account—an e-wallet—that can then be transferred to gaming devices. Any winnings would then be transferred back to the e-wallet. Gaming Control Board officials noted that the use of e-wallets will allow a transparent view of the money used to gamble should investigations be required.

IGT LAUNCHES PEAKBARTOP CABINET

nternational Game Technology Plc. announced that it successfully launched its next-generation bartop hardware, the PeakBarTop cabinet, at California’s Cache Creek Casino Resort, Morongo Casino Resort & Spa and San Manuel Casino,

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and Golden Nugget Hotel & Casino in Las Vegas. “Launching the PeakBarTop builds on IGT’s decades of commanding leadership in video poker and positions us to transform the entire bartop market segment,” said Nick Khin, IGT’s chief operating officer, gaming. “It provides our customers with a compelling, technologically advanced cabinet for market-dominating IGT video poker games such as Game King, Super Star Poker and Ultimate X Poker, in addition to Proven Performer IGT slot games such as Scarab and Solar Disc. “IGT customers can launch the PeakBarTop with confidence, knowing that it’s backed by the gaming industry’s most talented and experienced video poker product team and extensive focus group testing with players, operators and bar staff.” The innovative PeakBarTop cabinet features an ergonomic design that includes a 23-inch curved, full-HD display, a front-mounted ticket printer and an embedded card reader. The PeakBarTop cabinet also includes a range of technologically advanced features such as enhanced lighting and sound, a USB mobile device charging port, a play-level indicator for service staff, and embedded Bluetooth technology that enables operators to seamlessly integrate with IGT’s cashless gaming

systems technology. The PeakBarTop cabinet supports an expansive library of IGT game content. In addition to housing the most popular video poker titles of all time, the PeakBarTop portfolio offers new IGT video poker games such as Ultimate X Bonus Streak Poker, keno games such as Da Vinci Diamonds Keno, Proven Performer slot games such as Mistress of Egypt and a variety of roulette games. The cabinet’s game menu configuration enables players to effortlessly scroll through their favorite game titles with a finger swipe, just as they would search for content on a personal mobile device.

GULFSTREAM PARK LAUNCHES KONAMI SYNKROS

ulfstream Park & Casino in Hallandale Beach, Florida has chosen Konami Gaming’s awardwinning Synkros casino management system to replace a previous CMS. Gulfstream is the first land-based casino to launch Synkros in the state of Florida. “We selected Konami Gaming to replace our previous system, due to Synkros’ demonstrated extremely high reliability and Konami’s reputation of customer support and responsiveness,” said Dana Leibovitz, casino manager at Gulfstream Park &

Gulfstream Park & Casino

Casino. “In addition, Synkros’ unmatched marketing and data analytics capabilities further enhance Gulfstream’s leading market edge, while empowering our teams to deliver greater entertainment to players directly at their slot machine.” Guests can find, earn and redeem rewards and offers catered to their activity and spend through the Synkros Offers Management, which serves up personalized rewards including comp vouchers, free play, drawing tickets, bonus points and more, with direct access right on the slot machine’s screen or LCD display. Players can even qualify to compete in slot tournaments with Synkros’ awardwinning True-Time Tournaments, delivering a library of available tournament themes for on-demand or synchronized events.

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EMPIRE LICENSED IN MULTIPLE JURISDICTIONS

mpire Technological Group Ltd. last month announced the approval of its gaming applications by the Arkansas Racing Commission, the Choctaw Gaming Commission of Mississippi, the Cherokee Nation Gaming Commission of Oklahoma, the Puerto Rico Tourism Company (PRTC) and the California Gambling Control Commission. This licensure allows the Las Vegasbased game manufacturer to provide its Class III gambling equipment across these commercial markets. “We are pleased to be granted the licenses by the aforementioned gaming control boards and commissions,” said Empire President Frank Feng. “Acquiring these licenses marks another important milestone for the casino operators and the business strategy for Empire. Our strategy of being a market disruptor with value pricing and quality products for these markets furthers enhances the profitability for our customers.” Empire is a single-source provider of casino games including Class III slot machines, table games and innovative table game technology.

GAMING ARTS LAUNCHES NEW SLOT AND ETG FAMILIES

as Vegas-based supplier Gaming Arts, LLC has announced the launch of two highly anticipated new products, the Dice Seeker family of slot games and Casino Wizard Table Games suite of electronic table games. Recently, Cahuilla Casino Hotel in California and Turtle Creek Casino & Hotel in Michigan were first to market with Dice Seeker, and Silver Slipper Casino Hotel in Mississippi and Prairie Band Casino & Resort in Kansas were first to launch Casino Wizard Table Games. “Gaming Arts continues to innovate in the EGM space and stay true to its motto of providing game content that is ‘Fun for the Gambler’ with our expanding product portfolio,” said Keith Kruczynski, vice president of game development and design for Gaming Arts. “Dice Seeker and Casino Wizard Table Games offer content never seen on slot floors and provide new levels of entertainment to players.”

The patented Dice Seeker family of slot games offer 243 ways-to-win, persistent-style game play that enables players to watch winning opportunities develop before their eyes, and a two-part free games feature designed to award enormous wins. Three unique slot themes are included within the suite, any of which can be coupled with the company’s linked mystery progressive, Rocket Rollup. Casino Wizard Table Games is Gaming Arts’ first entrant of the Casino Wizard multi-game suite of ETGs and slot games. This first-of-its-kind ETG includes roulette, blackjack, craps and baccarat along with side and proposition bets to increase the handle and hold of the game. Operators can customize Casino Wizard Table Games to offer similar rules and bet structures to what is available on their floors. The company says the game is a great alternative to today’s social distancing pits, and allows players to discover table games without the pressure and intimidation of the pit. Gaming Arts’ EGMs are available in a variety of bank, pod and wall configurations. Dice Seeker and Casino Wizard Table Games can accommodate any casino floor and offer natural social distancing when placed in pod or wall configurations.

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SCIPLAY ACQUIRES CASUAL GAME DEVELOPER COME2PLAY

ciPlay Corporation, the iGaming supplier that is 83 percent owned by gaming supplier Scientific Games, has acquired Come2Play, Ltd., an Israeli-based developer and manager of casual mobile games. This acquisition brings the company into the fast-growing casual gaming segment. Headquartered in Tel Aviv, Israel with additional development offices in Poltava City, Ukraine, Come2Play’s social mobile games are enjoyed by casual game players around the world. Come2Play’s innovative game Solitaire Pets Adventure presents a new spin on the classic game solitaire, while its Backgammon Live is the leading backgammon experience available. Come2Play brings an experienced international team that will join forces with SciPlay’s worldwide team to drive game advancements and revenue expansion. Since its founding, one of SciPlay’s core strategies has been to bring on the best new content and supercharge it with the company’s player acquisi-

tion and revenue generation engine. The company’s last acquisition, SpiceRack, brought the popular bingo game Bingo Showdown into the SciPlay portfolio in 2017. SciPlay drove incredible results after the acquisition by more than tripling the games’ revenue. The company will utilize the same successful model to bring Come2Play into the SciPlay portfolio. “We are extremely excited to welcome the Come2Play team to SciPlay, as this is a perfect match when it comes to both our products and culture,” said Josh Wilson, chief executive officer of SciPlay. “Adding a new genre of evergreen casual games and an incredibly talented team to our portfolio immediately expands our market beyond social casino apps, and enables us to leverage our unique technology and strategies to drive player engagement and grow revenue. We believe that with our support and expertise in user acquisition, analytics and live ops, we will be able to drive new growth behind the Come2Play titles.”

ARISTOCRAT LAUNCHES ‘BUFFALO XING’ AT SILVERTON IN VEGAS

lot supplier Aristocrat Technologies announced the launch of the first-ever “Buffalo Xing” at the Silverton Casino in Las Vegas. The newest evolution of the fan-favorite brand Buffalo, the Buffalo Xing offers all their favorite Buffalo games in one space. The Buffalo Xing officially opened with an event on Wednesday, July 1. “We’re thrilled to unveil the Buffalo Xing at Silverton Casino,” said Jon Hanlin, senior vice president of commercial strategy and data analytics for Aristocrat. “Our Buffalo fans will love this dedicated gaming experience with all of their favorite Buffalo game titles in one space on the casino floor.” The grand opening event was open to anyone with a Silverton Rewards players card. Additionally, the first 50 Silverton Rewards guests will received $20 in free slot play and other Buffalo swag giveaways. “To partner with Aristocrat and launch the first Buffalo Xing is very exciting for us,” said Rob Kunkle, president of Silverton Casino. “Our players love the Buffalo brand, and we look forward to offering them a zone on the casino floor unlike any other where they can find all of their favorite Buffalo titles.”

GLOBAL PAYMENTS TESTS VIP MOBILITY AT OK CASINO

he Downstream Casino Resort in Quapaw, Oklahoma has launched a successful pilot of VIP Mobility, from Global Payments Gaming Solutions, which enables true cashless casino gaming. Increasingly, consumers are choosing to go cashless in their daily lives, from the coffee shop to the gas pump to the grocery store. They want that convenience to extend to their gaming experiences as well. Casino operators, in turn, stand to benefit from the adoption of cashless gaming as it provides a more cost-effective, secure payment method within their gaming floors. “We want to provide the very best experience for our patrons, and offering a mobile gaming option is just one step toward ensuring that they enjoy their time in our resort,” said Brock Moorehouse, compliance manager, Downstream Casino Resort. “Through VIP Mobility, we give our guests the choice to access funds in the way that is most convenient for them.”

Global Gaming Business AUGUST 2020

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PEOPLE STATION CASINO PRESIDENT DIES IN WATER ACCIDENT

tation Casinos was mourning its president, Richard Haskins, who passed away last month after an accident with a watercraft while on vacation in Michigan. Haskins had been with Station for more than 25 Richard Haskins years, spending the last 10 as president. He was second from the top at Station behind CEO Frank Fertitta III. In a statement issued by the company, Fertitta said, “Words cannot express what Rich has meant to the company and to me in the 25 years he has been with Station Casinos. He was a trusted adviser, a brilliant strategist, a steady hand in good times and in bad and most important—a friend to all. “It is very hard to imagine Station Casinos being the company it is today without Rich. He will be sorely missed by all who knew him. Our thoughts and prayers are with his children, his family, and his loved ones,” Fertitta concluded. The company said it will announce a successor to Haskins in the near future.

IGT SETS NEW ORGANIZATIONAL STRUCTURE

nternational Game Technology has announced a new organizational structure focused primarily on two business segments: Global Gaming and Global Lottery. According to a company statement, the new structure is designed to: • provide greater responsiveness to customers and players; • increase IGT’s effectiveness and competitiveness in providing products and solutions that address the opporMarco Sala tunities of each market segment; • harmonize best practices across both B2B and B2C channels in each product category; and, • reduce complexity and increase organizational efficiency to support IGT’s intrinsic value. “A simplified organizational structure grounded in our core competencies creates a stronger, more focused IGT,” said Marco Sala, CEO of IGT. Reporting to Sala, Renato Ascoli will serve as CEO, Global Gaming; Fabio Cairoli will serve as CEO, Global Lottery. This new structure is effective from July 1, and IGT will start reporting its financial results under these two business segments starting with the third quarter of 2020.

SCIENTIFIC GAMES NAMES CHIEF HR OFFICER, ASIA VP

cientific Game Corp. announced two appointments last month. Eileen Moore Eileen Moore Johnson Johnson will join the company as executive vice president and chief human resources officer. In this role, Johnson will oversee the company’s global human resources organization and report directly to Scientific Games President Clinton Long and CEO Barry Cottle. A well-respected gaming industry leader, Johnson joins Scientific Games from Caesars Entertainment, where she served as regional president of the Cromwell, Flamingo, Harrah’s and The LINQ resorts, overseeing more than 7,000 employees and operations at the four Las Vegas Strip properties. During her career with Caesars, she also held leadership roles at Horseshoe Southern Indiana and Harrah’s New Orleans. And the company has promoted Clinton Long, formerly sales director of the company’ Asian Gaming Group, to the position of vice president of Asia. Long relocated to Macau in 2014, and has been serving as the de facto head of sales for the Asian gaming group since March. He has been a member of SG’s leadership team sine 2013, and has 19 years of gaming industry experience, including 13 years in the Asian gaming market. Prior to SG, Long was with Aristocrat, where he helped develop that company’s Southeast Asia business.

SAN MANUEL CEO DEPARTS

oren Gill, chief executive officer for San Manuel Band of Mission Indians, has left his position. The band operates the San Manuel Loren Gill Casino in San Bernardino County, Southern California. No reason was given for Gill’s departure. However, San Manuel Tribal Chairman Ken Ramirez issued this statement: “Loren has developed what we believe is one of the strongest teams in the country, has led our economy to record growth, and has given us a pathway for future diversification.” He added, “He is a consummate builder and creator, and we are grateful for his contributions over the past five years.”

The current CFO, Laurens Vosloo, will serve as interim CEO. Gill was named CEO in 2019 after serving for three years as general manager of the San Manuel Casino. Ramirez recently replaced former chairwoman Lyn Valbuena, who had led the tribe since 2012.

SPORTS BETTING EXPERT RESIGNS IN TENNESSEE

ennifer Roberts joined the Tennessee Lottery as the director of the state’s online-only sports betting program in December 2019. Now, six months later, she has tendered her resignation before the first bet was placed. Roberts will join video game gambling company GameCo. Tennessee lacks a land-based casino industry, so lawmakers were unable to turn to comJennifer Roberts mercial gaming operators to help launch the new industry. Ex-lottery official and current consultant Wanda Young Wilson said Tennessee had no model to follow, because it is the first state to propose mobile sports betting only. Ultimately, the state went with an openmarket online model, then hired Roberts, previously an associate director at the International Center for Gaming Regulation at the University of Nevada, Las Vegas. She was charged with helping to create rules and regulations for the state, and setting a timeline to get sports betting up and running.

GGB

August 2020 Index of Advertisers

AGEM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35 AGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2, 9 Casino Player Media . . . . . . . . . . . . . . . . . . . .29 Casino Style . . . . . . . . . . . . . . . . . . . . . . . . . .39 Emerging Leaders . . . . . . . . . . . . . . . . . . . . . .45 Empire Technological Group . . . . . . . . . . . . . .11 Erin O'Boyle Photographics, LLC . . . . . . . . . .50 Everi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5, 55 Fantini Research . . . . . . . . . . . . . . . . . . . . . . .52 Fox Rothschild . . . . . . . . . . . . . . . . . . . . . . . .23 G&T Awards . . . . . . . . . . . . . . . . . . . . . . . . . .33 GLI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 GGB News . . . . . . . . . . . . . . . . . . . . . . . . . . .43 IGT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18, 19 Incredible Technologies . . . . . . . . . . . . . . . . .17 J Carcamo & Associates . . . . . . . . . . . . . . . . .49 Konami Gaming . . . . . . . . . . . . . . . . . . . . . . .56 SuzoHapp . . . . . . . . . . . . . . . . . . . . . . . . . . . .27 UNLV Division of Philanthropy & Alumni Engagement . . . . . . . . . . . . . . . . . . . .51

AUGUST 2020 www.ggbmagazine.com

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CASINO COMMUNICATIONS

Andrew Burke Chief Executive Officer, Bluberi

s a prime catalyst behind the growth of AGS as senior vice president of slot products, it wasn’t surprising to see Andrew Burke named chief executive officer at Quebec-based Bluberi in January. Bluberi has been bought by the Catalyst Capital Group private equity firm, and is eyeing a significant move as a game manufacturer and system provider. Burke’s expertise with slot product and Class II systems makes him a natural for the Bluberi role. He spoke with GGB Publisher Roger Gros at the Bluberi offices in Las Vegas in June. To hear a full podcast of this interview, visit GGBMagazine.com.

GGB: Congratulations on the new position with Bluberi; it’s such an interesting company. Why don’t you start with just giving us a little background on the company? Andrew Burke: Bluberi’s a business that’s been

around for almost 30 years, in various kinds of formats. For many years, it was run by the founder of the company, Gerald Duhamel, who started it in Quebec, in a town called Drummondville. It was primarily technology and game development—a heavy focus on that. It had never really taken a foray into manufacturing. The roots were this Class II gaming system. It was great technology and great games. In the mid-2000s, they tried to become a full-scale manufacturer. Unfortunately, they ended up bankrupt in 2015. Out of that, they became owned by a private equity firm that is taking a different approach with the business. They had a CEO before me, and had various initiatives they were going after. But they just couldn’t get the traction that they really wanted. I’ve known the company for a really long time, from a distance. At AGS, when I started there, we didn’t actually have a game development studio, and all of our product was Bluberi product. How did you get involved?

I got a phone call saying, “Bluberi’s looking for a CEO; are you interested?” I said, “absolutely.” So

Global Gaming Business AUGUST 2020

it was a very natural fit for me. I grew up in the Class II business, and I think there’s just so few of these businesses left, that have really good bones, some really great technology, and just need a cohesive strategy and some discipline. I believe our technology is some of the best in the space, and our Class II business is amazing. We really see a parallel between the ramp-up of AGS and your role at Bluberi. AGS was mostly a Class II business when David Lopez took over, and this seems to be the same thing for you.

Yes, the playbook’s similar—find a good asset that has good people and good technology, and then fill in skill gaps with smart people that have lots of industry experience. We recently hired Casey Whalen as our chief commercial officer. He’s got a tremendous amount of Class III knowledge, as well as Class II experience. And so, the more we bring those types of skill sets on the manufacturing and sales side of the business, the better off we’ll be. Your expertise is in game development. I understand the Bluberi game development lab in Quebec is pretty strong.

They have a great team there. The things that they’re really good at and strong at, I can just help from a distance, and help our strategy. That’s always been my biggest strength on the commercial side of the business, thinking about how those two things marry up. I really am excited about the game plan they have. I feel like the team there has just never been given the chance to run it themselves. They’ve had a lot of outside consultants brought in, and for some reason it never worked. And so I think it’s really good for them to have a shot to run it, and create something special.

What are your main markets right now?

We do mostly tribal-based businesses—no surprise on the Class II side. Alabama is a large market for us. Washington state, the TLS market is very big for us. California is starting to come along and develop. The Class II business down in Florida is also big for us. We have very little business in Oklahoma, which was very big for me in my previous roles, so there’s a lot of opportunity there. I feel like I was a partial Oklahoma citizen. So I think there’s a lot of white space in front of us—a lot of opportunity to grow the business. How has the pandemic affected Bluberi? I’m assuming you were shut down like everybody else.

Yes, that’s right. And it was very difficult. But we have a lot of great people who made a lot of sacrifices for the business, and that’s not lost on me. I told everybody that was staying, it’s our job to make sure that there’s a Bluberi for people to come back to. And that’s the most honest thing I can say—that we can’t waste that time. While everybody else is at home or people have been furloughed, our obligation is to maximize the amount of work and effort we put in during that time. And I feel like we’ve really been able to achieve that. Your new Las Vegas office is taking shape, and they’ve been in Quebec for all this time. What will be the ratio of employees in each office?

It’s interesting. People up there ask me that question. “Are we closing the Quebec office?” And I said, “No, look; when I started at AGS, we had 100 employees. And when I left AGS, we had 700 employees, and all over the place.” Despite the COVID situation, I came here to grow this business. And I think we’ve got a lot of great, talented people there. I hope to add a lot of great talented people here. Also there. So, I think we’re just really getting started. We’ve got really good technology and R&D up there. We’re building the stateside infrastructure you need to run one of these businesses.

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