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GGB Global Gaming Business Magazine
RESPONSIBLE GAMING CASINO ARCHITECT PAUL STEELMAN PLAYER DEVELOPMENT TOOLS AGEM AWARD WINNERS
December 2020 • Vol. 19 • No. 12 • $10
10 for’21 Cashless gaming is the top trend for the upcoming year
Combating Cyberattacks
Why transparency is necessary to end hacking in gaming
SAFETY
First Disturbances in casinos and how to mitigate them
Association of Gaming Equipment Manufacturers
Let’s Go! everi.com
KACY DRURY Operations
DEAN EHRLICH Games
DARREN SIMMONS FinTech
MIKE RUMBOLZ CEO
RANDY TAYLOR President / COO
DAVID LUCCHESE Sales / Mkt / Digital
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CONTENTS
Vol. 19 • No. 12
december
Global Gaming Business Magazine
COLUMNS
18 COVER STORY Trending Into 2021
10 AGA Ready for Recovery
Our annual review of the Top 10 trends that will affect the industry in the coming year reflects the profound effect the Covid-19 pandemic has had on the casino hospitality industry, in current and future gaming jurisdictions around the world.
Bill Miller
12 Fantini’s Finance Clean Sweep Frank Fantini
DEPARTMENTS
By Dave Bontempo, Brendan D. Bussmann, Jack Gallaway, Roger Gros, Frank Legato, Ayako Nakayama, Patrick Roberts, Bill Sokolic, Michael Soll, Dr. Kate Spilde, Brian Wyman, and Thomas Zitt On the cover: Konami’s SynkConnect cashless wagering system
The Agenda
6
By the Numbers
8
5 Questions
13 AGEM
FEATURES
40 Emerging Leaders
36 Responsible Solutions Researchers and regulators continue to pursue the best methods of identifying and treating gambling disorders as responsible gaming efforts meet advancing technology. By Bill Sokolic and Jason Shiers
14 Security: New Challenges The post-Covid-19 world has given rise to new security concerns, particularly on the Las Vegas Strip, where smaller gatherings have led to more violent crime.
4
With DGE’s Anthony Strangia, Caesars Entertainment’s David Rittvo, and Everi’s Marshall Adair
45 Cutting Edge 46 New Game Review 48 Frankly Speaking
42 Post-Covid Marketing As the industry begins to emerge from the Covid-19 crisis, tried and true technology in the marketing field is providing solutions.
50 Goods & Services 53 People
By Dave Bontempo
By Al Zajic
34 The Cybercrime Threat Cyberattacks are on the rise in the casino industry, as hackers break into more casinos with ransomware attacks and other cybercrimes.
54 Casino Communications With Paul Steelman, Founder and President, Steelman Partners
By Andy Goldberg
DECEMBER 2020 www.ggbmagazine.com
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THE AGENDA
Coming of Age
Vol. 19 • No. 12 • DECEMBER 2020 Roger Gros, Publisher | rgros@ggbmagazine.com twitter: @GlobalGamingBiz Frank Legato, Editor | flegato@ggbmagazine.com twitter: @FranklySpeakn
By Roger Gros, Publisher
hey say when you reach 7 years of age you’ve attained the age of reason. So up until 7 then, you can be a wild animal, with no sense of right and wrong, and no care in the world. And suddenly you’re of age and totally responsible. Well, this could have described online gaming if it had gone off the tracks during those early years, but November marked the seventh anniversary of iGaming in New Jersey, the first state of any significance to introduce the industry, with no major issues to report. Yea, I hear you, Nevada. Pipe down! Yes, you legalized online poker a couple of years before that, but really? In a state of just a few million, online poker is an afterthought. And the revenues are so low, the state is embarrassed to release the figures. So until Nevada adds a full suite of online gaming options like New Jersey, it’s in the minor leagues. Seven years ago, no one knew what iGaming would do in New Jersey, particularly the regulators. While the state Division of Gaming Enforcement had consulted with European jurisdictions, there really was no clear pathway in the U.S. given the differing levels of regulations. The DGE was already requiring marketing affiliates to register as vendors, something never seen in Europe. But at the last minute, the DGE determined if you wanted to share revenues with the online casino—earn a percentage of a player’s losses—you had to get a higher, and much more expensive, level of license. And who knew if geolocation was going to work? After all, on both sides of the state, there were massive population centers outside of New York City and Philadelphia that were separated by relatively narrow rivers. Could you really pinpoint where a player was with that much accuracy? Turns out you can. Where there were some instances of bets being accepted from out-of-state locations, the vast majority of them were rejected. Sheldon Adelson warned that children will get hold of Daddy’s credit card and play casino games. Well, that also turns out to be a fallacy because the stringent ID verification process prevented that from happening. In the beginning, it was very hard to deposit or withdraw money. Over the last seven years,
T
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they’ve added more options, but in my opinion, this is still the Achilles’ heel of online gaming. I’m admittedly an older person and not very technology savvy. I’ve tried to set up an online wallet, deposit from my bank account, use an ACH check, even use PayPal, and none of them worked. The customer service reps at the online casinos had no suggestions to fix this other than trying a different method. Probably the best way for an old klutz like me was to use the option Pay Near Me, where I would go to my nearest 7Eleven and physically give them cash to deposit into my account. Of course, 7-Eleven takes a rather usurious fee for the small amount I was depositing, so not the best option. I guess I need someone to hold my hand and walk me through the process, but this remains the most difficult remaining element for iGaming. And what about those “skins?” And I don’t mean the Washington Football Team. Skins are brands that exist under the umbrella of an existing casino’s license and sometimes overshadow the existing casino. In New Jersey, DraftKings is included under the Resorts Atlantic City license. The DraftKings physical sports book in Resorts is very nice, but the app blows away any other app in the state in terms of revenue. Golden Nugget has been the leader in New Jersey because of how judiciously it allocates its skins. Is the New Jersey market saturated with operators? When there are more than 25 operators, the answer would have to be yes. But those operators are getting valuable experience that will be translated to subsequent states that legalize iGaming. Have there been rough spots over the past seven years? Of course. Blazing a trail sometimes takes you on a somewhat circuitous route. But eventually New Jersey found the right path, and for states considering legalizing iGaming, they would be wise to fall in behind the gold standard that this state has created. As a New Jersey homeowner, I can tell you there’s not much that the state has gotten right over the 40 years I’ve lived there, but iGaming is one of them. So happy Seventh Anniversary to New Jersey’s iGaming industry, and I hope the age of reason will extend for the next 40 years.
Monica Cooley, Art Director mcooley@ggbmagazine.com Terri Brady, Sales & Marketing Director tbrady@ggbmagazine.com Becky Kingman-Gros, Chief Operating Officer bkingros@ggbmagazine.com Lisa Johnson, Communications Advisor lisa@lisajohnsoncommunications.com twitter: @LisaJohnsonPR Columnists Bill Miller | Frank Fantini Contributing Editors Dave Bontempo twitter: @bontempomedia Brendan D. Bussmann| Jack Gallaway| Andy Goldberg, Ayako Nakayama| Cloe Paul| Patrick Roberts| Jason Shiers, Bill Sokolic twitter: @downbeachfilm| Michael Soll Dr. Kate Spilde| Brian Wyman| Al Zajic| Thomas Zitt __________________
EDITORIAL ADVISORY BOARD Rino Armeni, President, Armeni Enterprises
•
Mark A. Birtha, Senior Vice President & General Manager, Hard Rock International
• Julie Brinkerhoff-Jacobs, President, Lifescapes International
• Nicholas Casiello Jr., Shareholder, Fox Rothschild
• Jeffrey Compton, Publisher, CDC E-Reports twitter: @CDCNewswire
• 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. 1000 Nevada Way • Suite 204 • Boulder City, NV 89005 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. Boulder City, NV 89005 GLOBAL GAMING BUSINESS is published monthly by Casino Connection International, LLC. Printed in Nevada, USA. Postmaster: Send Change of Address forms to: 1000 Nevada Way, Suite 204, Boulder City, NV 89005
Official Publication
Everi_Executives_FullPg_GGB_Final.pdf
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If it makes you look good, we’re already working on it. We’re a team of can-doer’s, problem solvers, and proactive partners looking at the gaming industry from every possible angle. We take pride in providing customized solutions for the front of the house, the back of the house and even your customer’s house. The world has changed. Our purpose hasn’t. FINTECH • GAMES • DIGITAL • LOYALTY
Let’s Go! everi.com
KACY DRURY Operations
DEAN EHRLICH Games
DARREN SIMMONS FinTech
MIKE RUMBOLZ CEO
RANDY TAYLOR President / COO
DAVID LUCCHESE Sales / Mkt / Digital
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BY THE
NUMBERS Active Games—Owned (Large Suppliers)
BACk IN ACTION W
hen casinos were closed for months, slot machines were also shut down, obviously. And when the casinos started to reopen, there were concessions to social distancing and most casinos turned off every other slot machine. While this is certainly not the business model casinos use when setting up their casino floors, no one expected slot revenues to come back quickly. But they have. With only a portion of the games in the U.S. up and running, Eilers & Krejcik Gaming and Fantini Gaming Reports issued a special report, “Eilers-Fantini Data Insights—Active Games Report—October ’20.” The report showed that of 158,207 slots surveyed by Eilers-Fantini, 10.7 percent of the games were turned off. The report considered the inverse, games active, that have been similarly reported from the suppliers during earnings calls. The bottom chart is the number of games active and the two other charts are the major segments of the slot business. The orange lines at the top of each column indicate the percentage of games active in October 2020. To obtain a copy of the reports, contact Rick Eckert at reckert@ekgamingllc.com.
Active Games—Premium Leased & WAP (All Suppliers)
Current GPD Reporting—Active vs Inactive Slots
Election Success
T
he overwhelming gaming win in the November elections spread sports betting to three more states while three other states expanded gaming that included more casinos and looser regulations. Sports betting was legalized in Louisiana, Maryland and South Dakota and expanded casino gaming in Colorado, Nebraska and Virginia. Most parishes in Louisiana approved sports betting, Maryland will permit its casinos racetracks and possibly stadiums and arenas to offer the wager, and South Dakota voters said the casino town of Deadwood and several tribal casinos may offer sports betting. Voters in four Virginia cities approved the legalization of casinos within their borders. By a ratio of nearly 2-to-1, voters overwhelmingly supported referendums in Bristol, Danville, Norfolk and Portsmouth, which will allow a commercial casino to be built in each of those cities. And Nebraska voters ended the state’s ban on the gaming industry, approving three measures on November 3 that will allow Ho-Chunk Inc. $300 million to build casinos at existing racetracks in the state’s largest cities, Omaha and Lincoln, that will open next year. They will be followed by a racino at Atokad.
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Global Gaming Business
DECEMBER 2020
Gaming Successes 2020 Elections EXPANDED GAMING
SPORTS BETTING
SegaSammy_GenesisCrest_LaunchPrint_FIN.pdf
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NUTSHELL
“They
5QuestIons Brooks Pierce
President and COO, Inspired Entertainment
n the four years since Lorne Weil became chairman and Brooks Pierce was appointed president and chief Ipany’s operating officer, Inspired Entertainment has become a bigger player in the gaming industry. The comdiversified product offering has played well during these uncertain times, and the recent growth of distributed gaming in the U.S. has positioned Inspired Entertainment in a great place. Pierce spoke with GGB Publisher Roger Gros over Zoom in November. GGB: How has Inspired weathered the Covid-19 lockdowns? Pierce: Like everyone in the industry, we’ve had to adjust and adapt. For us, there is a mix of our business
1 2
that is both retail and online. Our retail business, as you might imagine, shut down on a worldwide basis almost overnight in the middle of March. By the middle of May, we started seeing some of our markets coming back and by the middle of June, we were almost at full capacity. At that same time, our online slots business and our online virtuals business grew dramatically. And now that we’re back on schedule in terms of the retail business, both of the online businesses have maintained most of their increases.
Can you break down what your business consists of? There are several different aspects, correct?
Yes. There are a couple of different channels. One is our gaming machine business. We are primarily in the slot route business. It’s server-based, and we put our machines into an establishment for a percentage of the play. It’s not primarily a sales market, it’s more of a recurring revenue market. In this distributed gaming business, it’s a large number of locations with a few machines in each location. Then we have our virtual sports business, which is what Inspired is most known for. This year we’ve done some amazing events virtually like the Triple Crown Showdown, around the time the Kentucky Derby was usually run. And then just recently we did a virtual Melbourne Cup. We had the opportunity to do some very unique virtual sports events when there was a lack of live sports. And the third leg of the stool is our online slots business, primarily in the U.K. but getting bigger and bigger in the states. The acquisition we made from Novomatic gave us a different distribution channel in the U.K. So in addition to the betting shops, we’re also now in pubs, holiday parks and motorway services, which are like truck stops in the U.S. So it must have been beneficial to Inspired when real sports shut down. How did that go?
3 4 5
Amazingly well. We didn’t really want to take advantage of that situation but frankly, the players were demanding it. They were very interested in watching sports events, live or virtual. We did a virtual Grand National where something like 5 million people watched it in the U.K. Our biggest product in the U.K. is football. With the Premier League being shut down, our products have really resonated with the players. Explain what your relationships are with lotteries.
Many of our biggest customers are large lottery operations—OPAP in Greece, the Pennsylvania Lottery and others. We just went live with Sisal in Italy. Strangely enough, they have a license in Turkey, so you can now sit in your apartment in Istanbul and have virtual American football on your computer. The numbers coming out of Turkey have been astounding. Tell us about what’s happening in the U.S. for Inspired.
We just had our one-year anniversary in the Illinois distributed gaming market. That’s been great. Virtually every location we’re in, we’ve been the No. 1 or No. 2 performing machine. We’re also working with the Western Canada Lottery Corporation, which is our entry into the Canadian market. We’re also involved in Oregon and West Virginia. In terms of virtuals, just about all the operators in New Jersey have signed deals with us.
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Global Gaming Business DECEMBER 2020
Said It”
“Our concern is that if we’re unable to reopen, we’re going to be forced into a situation where we would no longer have the cash reserves to be able to open again at some point in the near future.” —Brian Parrish, chief executive officer of the Navajo Nation Gaming Enterprise, on the need to reopen the nation’s four casinos after being hit hard by the Covid-19 pandemic
CALENDAR December 1-2: Betting on Sports America. Produced by SBC. For more information, visit SBCEvents.com. DIGITAL December 7-9: World Gaming Executive Summit (GES), W Hotel, Barcelona, Spain. Produced by Velo Partners. For more information, visit terrapinn.com/conference/world-gamingexecutive-summit. DIGITAL February 16-18: SIGMA Europe. Produced by SIGMA. For more information, visit SIGMA.com. DIGITAL March 10-12: IMGL Spring Conference 2021, Hotel Grand Bretagne, Athens, Greece. Produced by the International Masters of Gaming Law. For more information, visit IMGL.org. LIVE March 22-24: CasinoBeats Summit, InterContinental, St. Julian’s, Malta. Produced by SBC. For more information, visit SBCEvents.com LIVE March 23-25: SPiCE India, Goa Marriott Resort & Spa, Goa, India. Produced by Eventus International. For more information, visit sportsbettingevents.com. LIVE March 30: Prague Gaming Summit, Vienna House Andel’s Prague, Czech Republic. Produced by European Gaming Media and Events. For more information, visit PragueGamingSummit.com. HYBRID May 13-14: ICE North America, New Orleans, Louisiana. Produced by Clarion Gaming. For more information, visit ICENorthAmerica.com. LIVE May 27-28: SIGMA Asia, SMX Convention Centre, Manila, Philippines. Produced by SiGMA. For more information, visit SiGMA.com. LIVE June 14-16: International Gaming Summit 2021, Culloden Estate and Spa, Belfast, Northern Ireland. Produced by the International Association of Gaming Advisors (IAGA). For more information, visit TheIAGA.org. LIVE June 29-July 1: ICE London, ExCel Centre, London. Produced by Clarion Gaming. For more information, visit ICELondon.UK.com. LIVE
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AMERICAN GAMING ASSOCIATION
Ready For Recovery Gaming’s election wins show that it’s an important and growing industry in need of assistance
By Bill Miller
Editor’s Note: This column was written at the beginning of November. To read the most up-to-date version, please visit GGBMagazine.com.
O
n Election Day 2020, ballot initiatives in several states asked voters if they support expanded gaming in their communities, and voters responded with a resounding “yes.” Americans at the ballot box in Colorado, Nebraska and Virginia expanded casino gaming while Louisiana, Maryland and South Dakota legalized sports betting. World-class casino entertainment is legal in 44 states and the protections of the legal, regulated sports betting market are available to more than 45 percent of American adults. As a result, more Americans than ever will have access to the economic opportunity the gaming industry provides through job creation and partnerships with small businesses. State and local governments will also be able to use the ensuing tax dollars to support public education, vital infrastructure projects, and other essential programs in the wake of the Covid-19 pandemic. With the national election now in the rearview, the American Gaming Association (AGA) will continue our 25-year history of working across party lines to show policymakers our industry’s commitment to responsibility, highlight our outsized community impact, and advocate for policies that advance gaming’s priorities. This means building new champions in the 117th Congress, expanding our work with the bipartisan Congressional Gaming Caucus, and continuing to engage the Biden administration. We look forward to continuing to work with members on both sides of the aisle to address overly burdensome and unnecessary
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Global Gaming Business DECEMBER 2020
regulations and taxes, as well as reducing illegal gambling operations that continue to pose a risk to the American public and the economic success of our industry. However, urgent action is needed now to provide additional Covid-19 relief to the gaming industry. The AGA is working on a daily basis to urge leaders in Congress and the Trump administration to advance legislation that aids employee rehiring and retention, bolsters liability protections for responsible operators, supports tribal nations, and kick-starts travel and tourism. We’ve already seen what we can accomplish when our industry unites with a common purpose. Our inclusion in the CARES act, which bolstered the industry and saved countless gaming jobs, was a stark departure from pre-Covid federal economic relief efforts that intentionally discriminated against gaming companies. And more recently, gaming champions in Congress have advanced legislation addressing key priorities with a House bill to eliminate the federal excise and head taxes on sports betting operators and a Senate bill that will aid the return of tourism, meetings and conventions. There has never been a more important time for the gaming industry to speak with a unified voice and common purpose. The AGA will continue to bring our industry together to work with policymakers, regulators and all relevant stakeholders as we navigate gaming’s recovery—a recovery that is vital to communities across our nation. Bill Miller is president and CEO of the American Gaming Association.
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FANTINI’S FINANCE
Clean Sweep Gaming won big in November elections
A
merica might be divided by Republican and Democrat and left and right, but one thing is clear: Americans by significant majorities support gaming. The numbers in elections were stunning, a clean sweep as every gaming referendum passed, from the first of a two-step expansion authorization in Colorado to sports betting legalized in three more states, to long anti-gaming Nebraska authorizing a half-dozen casinos at racetracks, to four casino-authorized cities in Virginia approving projects. The winners are many: companies heavy into sports betting such as DraftKings, Penn National and MGM Resorts; casino operators in multiple states where gaming was expanded with Caesars, Churchill Downs and, of course, Penn National again; and gaming suppliers as Virginia and Nebraska open new markets. For most of those companies, however, the impact will be limited by the fact that the expansions will be incremental to their large operations, not revolutionary. Perhaps the biggest winner is Monarch Casino, whose soon-to-open destination-quality and scale property in Black Hawk, Colorado, will now be able to compete for high rollers and other avid gamblers who have made Denver the thirdlargest feeder market to Las Vegas. The same is true for Penn National and Caesars in Black Hawk, but for little Monarch, with just two properties, turning one of them into a money machine will have a much greater impact on the stock. As a whole, Monarch generated $61.687 million in EBITDA last year, most of it from its Atlantis Casino in Reno. EBITDA might reach $95 million or $100 million with the Black Hawk property expansion. And that estimate is before the impact of the referendum that will basically result in the lifting of the $100 bet limit and allow games like baccarat and pai gow. The one contingency is that the 120-person town of Black Hawk must pass an enabling referendum, which is almost a certainty, and it should happen in the first half of next year. Estimating the earnings impact of the refer-
12
By Frank Fantini
endum is a bit of a guessing game, but Macquarie analyst Chad Beynon puts the value of the gaming expansion at $2 to $5 a share. Other small public companies that stand to benefit with even modest expansion are Golden Entertainment, which can now offer sports betting in Maryland; and Full House Resorts, with its Cripple Creek, Colorado, casino. Talking about stunning numbers, regional casinos supplied them in the third quarter. Casino operators had said that lower costs would offset lower revenues. And boy, did they, from big operators like Caesars to the above-mentioned Monarch. Let’s use Boyd Gaming and Red Rock Resorts as examples. Boyd’s third quarter EBITDA grew over 12 percent from last year on a 21 percent revenue decline. EBITDA margins soared 10 percentage points to a record 36.6 percent. Red Rock’s numbers were even more impressive. EBITDA soared 45 percent despite 24 percent lower revenues. Margins hit a record at 46 percent. More important, they promised this was the start of a new business model and not just a temporary effect that will disappear when the Covid-19 pandemic disappears. Here were Boyd CEO Keith Smith’s comments on his company’s investor conference call: “Today is our new normal. We have established a more efficient and more focused business model over these past several months and we are determined to sustain higher margins going forward.” Smith discussed the lower costs, in part a result of marketing focused on high-value customers, several times in the call, then reiterated, “We are committed to sticking with this refined business model. So, right now the model is creating profits in excess of last year’s profits, and we are pretty pleased with that.” In Red Rock’s call, CFO Steve Cootey said the company expects more than $150 million a year in permanent savings through streamlining operations, more focused marketing and renegotiating vendor contracts. Higher margins are here to stay, he declared. Clearly, these are encouraging trends. But they are not unalloyed. Some of the reasons for the higher margins may be the reasons for future concern.
Global Gaming Business DECEMBER 2020
Take labor as an example. Casino companies have reduced workforces. Good for expenses now. And government aid has helped consumers continue to spend, and another round of stimulus is almost universally expected. But lower permanent employment does not fuel future consumer spending. And gaming isn’t the only industry reducing employment. Millions of unemployed people is not a recipe for success for consumer discretionary industries, or their stock prices. In other words, as encouraging as the efforts and results being achieved by American businesses may be, there is still risk of recession after recovery.
GREEN SHOOTS? While the public is focused on the rising number of Covid cases, there may be some reason for encouragement that the American economy will muddle through. Mainly, governments are slowly allowing businesses to reopen, improved medical treatment is dramatically reducing the fatality rate, and people in general are learning to live with the virus being around. Nevada is an example. Already problematic group and convention business disappeared when the state imposed a limit of 50 people at gatherings. When that cap was raised to 250, events such as weddings quickly started coming back. Now, Governor Steve Sisolak says he will allow convention business to return at 50 percent capacity starting in January. We see similar loosening in other areas. Baseball played without fans until the playoffs moved to Texas and more than 10,000 people were allowed to attend. It will not be surprising to see greater numbers allowed in more cities for more sports as time goes on. All of that might not make for exuberance, but it can bring significant relief to entertainment and leisure industries. Meanwhile, investors may have to be patient, as it looks like 2022 before a complete land-based revenue recovery, but with those higher margins and burgeoning online operations, 2021 can be a good year for profitability. Frank Fantini is the editor and publisher of Fantini’s Gaming Report. For a free 30-day trial subscription email subscriptions@fantiniresearch.com.
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AGEMupdate AGEM Board of Directors Actions for November 2020
AGEM MEMBER PROFILE
Empire Technological Group (ETG) is a
manufacturer, developer and provider of table game technology and products and video reel slots—a single source for exceptional casino games and innovative table game technology, helping maximize player satisfaction and gaming revenue. ETG will be introducing a new, patented table game tracking system under the SMRT Choice Products brand for card rooms and casinos that tracks table game chips as they drop into a chip drop box, giving management of the card room and/or casino instant, real-time revenue data. ETG also will be introducing a new cabinet in Q3 of 2021 with new themes that are designed around player-specific betting dynamics. ETG just installed its newest high-denomination themes, Jackpot Series, in California with over 256 commitments for additional placements. In 2021, ETG will be hosting virtual training for table game technology and table games as well a virtual showroom for new video game themes. For more information, visit www.etgltd.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. The AGEM Index dropped by 36.05 points in October 2020 to 494.82 points, a 6.8 percent loss from September 2020. Overall, most AGEM Index companies reported decreases in stock price during the month, with five trending positively and eight moving negatively. The stock price of Aristocrat Leisure Limited (ALL.AX) experienced a 4.5 percent decrease, contributing 15.96 points to the AGEM Index’s October decline. Additionally, the stock price for Konami Corp. (TYO.9766) dropped by 10.4 percent, accounting for a 9.8point decrease in the AGEM Index. The major stock indices decreased in October, as well. The Dow Jones Industrial Average declined by 3.5 percent, and the NASDAQ fell by 2.7 percent. Meanwhile, the S&P 500 dropped by 1.9 percent.
• AGEM members received an update on the U.S. elections that delivered a series of expansion opportunities for the industry, with almost all gaming measures on the ballot nationwide approved. Local voters in four Virginia cities approved a series of referendums to authorize casinos in Norfolk, Bristol, Danville and Portsmouth, as well as three ballot initiatives to authorize casino gaming at Nebraska racetracks that were also passed by voters during the November 3 elections. It was also a positive Election Day for the rapidly expanding sports betting industry. Voters in Maryland, South Dakota and most of Louisiana all approved ballot initiatives to legalize wagering on games, mandating lawmakers in all three states to pass more specific legislation to regulate sports betting during their 2021 sessions. • The winners of the Executive Development Program (EDP) Gender Diversity Scholarship sponsored by European Casino Association, partnering with AGEM, Clarion Events and the EDP, were recently announced. This year’s competition was intense, and resulted in Kristina Kratz from Westspiel, Germany, and Jaana Ruokamo from Casino Helsinki, Finland, being awarded equal top points. Usually, this situation would see a draw to choose a winner, but the ECA decided to increase its contribution to ensure both candidates could attend. The scholarship was set up for women in the industry with two- to threeyears’ experience in the land-based casino sector to attend the EDP, which this year was held as a virtual event November 15-21. Congratulations go to both winners. • AGEM members were informed the 1st Circuit Court of Appeals in Boston may have to rehear the U.S. Department of Justice’s appeal to extend the scope of the Wire Act to all forms of gaming after one of three judges assigned to hear the case passed away on October 27. A ruling by the three-judge panel had been considered imminent. This important update has the potential to impact all sectors of the industry, including sports betting, online gaming and lotteries. • The Nevada Gaming Control Board announced in early November that Chairwoman Sandra Douglass Morgan would be leaving her post to take on a new role in the private sector. She was appointed to this role by Governor Steve Sisolak for a four-year term from January 28, 2019 to January 28, 2023. Subsequently, Sisolak announced attorney J. Brin Gibson will replace Morgan as chair. Board Members Terry Johnson and Phil Katsaros continue in their positions. • AGEM members approved a contribution of $10,000 to renew its membership to the Nevada Council on Problem Gambling. The NCPG is a nonprofit information and referral agency whose efforts are focused on addressing the impact of problem gambling on its citizens, businesses and communities in the state of Nevada. Incorporated in September 1984, the council serves as an advocate, an information re services to meet the needs of individuals and families who are afsource, and a provider of programs and fected by problem gambling. took place as a video presentation • The AGEM Memorial Awards in honor of Jens Halle and Peter Mead during the virtual G2E Event on October 28. The late Robert (Bob) McMonigle was selected as the recipient of the 2020 Jens Halle Memorial Award Honoring Excellence in Commercial Gaming Professionalism, and David Orrick of Merkur Gaming was selected as the recipient of the 2020 Peter Mead Memorial Award Honoring Excellence in Gaming Media & Communications. Although AGEM was disappointed to not hold the award ceremony as an in-person event on the show floor, the video presentation gave the opportunity for a much wider audience to view it and as a result future awards, whether virtual or at G2E, will be videoed and available to view on the AGEM website.
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COOL IT! Disturbances in casino destinations post-Covid are troubling. Here’s what you can do. BY AL ZAJIC
M
ost casino executives will attest that operating during the current Covid pandemic in the U.S. has been challenging at best to follow recommended safety protocols from the CDC, comply with jurisdictional orders and requirements, and still attempt to operate a profitable enterprise. Casinos have and are constantly adjusting to the ever-changing conditions, which demonstrates the creativity to operate, keep customers satisfied, and present an entertaining experience by the casino industry as a whole. The continued closures of significant large venues inside of larger casinos such as showrooms, nightclubs and other entertainment venues in markets such as Las Vegas has created a void in organized social entertainment for the public. This creates the opportunity for criminal activity to increase through unorganized social activities in unconventional locations and in smaller groups that are more difficult to observe, control or manage. Non-gaming venues being closed adds to the situation. Parking garages, surface lots, and especially sidewalks are experiencing increased incident activity and sometimes violent crime as a result. If all of that were not enough, demonstrations along the Strip and in other gaming markets during the pandemic have further stressed law enforcement and casino security to deal with them in a lawful manner while accomplishing what seems to be impossible to keep everyone happy. Violent crime increases as reported by the media in Las Vegas have given a challenge to casinos to respond with additional security measures, implement increases in uniformed security presence, implement various access controls, develop new procedures, and still keep customers happy and at least generate enough revenue to pay for operating expenses.
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Global Gaming Business DECEMBER 2020
Prison inmate population decreases through early release programs due to the pandemic and prison reform have also re-introduced offenders back into the population, of which many will again commit crimes for various reasons, including at casinos. Not all people released from incarceration have been criminally rehabilitated. Gun shooting incidents are included in the violence occurring inside and outside casinos, and is the recent cause for concern for Las Vegas. Americans are legally purchasing record numbers of guns. Illegal gun sales by definition cannot be tracked nor can it be determined how many legally bought guns later end up in the hands of criminals.
More Guns, More Trouble The reality is, more people are more increasingly likely to be carrying guns (either openly or concealed), which increases the risk of gun and shooting incidents in and around casinos. Disagreements and altercations have escalated into shooting incidents along the Strip when one person pulls out a gun and fires it. The majority of security personnel in Las Vegas are unarmed. Along with negative press and violent crimes also comes a higher risk for related civil litigation against casinos, which has a long trail to resolution. What may happen in 2020 could be still in litigation, at great cost to defend, four or five years later. With millions of Americans out of work and increasing violent crime, the potential for increased litigation is almost certain. It cannot be definitively determined if overall crime will increase or decrease for 2020 until the end of the year when statistics are calculated. It
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Las Vegas police and casino security departments are working closely together to reduce and deter violent incidents from occurring along the Strip. Many Strip casino properties now have more uniformed security officers than before on the sidewalks, in parking areas and inside. is also difficult to determine if the perception of increased violent crime through media reporting will actually result in an overall increase of violent crime. What is apparent is that shooting incidents have increased on the Strip and reasonable, additional proactive security measures should be taken by casinos to attempt to deter and decrease violent incidents from occurring on their properties, both inside and out. There are other shooting incidents that have occurred outside of Las Vegas in recent months. On October 21 at 2 a.m. at the Agua Caliente Casino in Palm Springs, police responded to an armed robbery and found two suspects in the parking garage who were then shot by police. The suspects were from out of the area, and had committed two other casino robberies earlier the same evening. On October 4, an incident occurred with an officer-involved shooting inside the Casino of the Sun in Tucson, Arizona. Criminal gang activity appears to be a factor in the rise of violent crime near casinos. A gang, for instance, in another state or city can travel to the areas of casinos (many of which are state border towns), bring their own alcohol and drugs, party in parking lots or non-traditional locations, get into fights and commit violent crimes including shootings without warning such as those occurring outside of Strip casinos.
Las Vegas Strip Violent Crimes The reopening of casinos along the Strip in Las Vegas has been slow and painful to implement. It takes much planning, organization, management and oversight to restart a large casino and open the doors to the public under newly mandated operating conditions. Four casinos in Nevada have been fined by the Nevada Gaming Control Board for not complying with statemandated restrictions related to the pandemic since reopening. Many employees including security personnel were furloughed when casinos were ordered to close, and had to be rehired and be retrained to deal with Covid-19 restrictions. Many security officers have had to deal with customers who refuse to wear masks or not comply with state mandates, some resulting in trespass arrests and an increased risk of Covid exposure to security personnel. Las Vegas has been less restrictive than surrounding states and cities since casinos were allowed to reopen, which also increases the desire of gang members and criminals to take a road trip to Las Vegas, create havoc, commit vio-
lent crimes, and then leave—unless arrested, leaving the police and security to clean up the mess. Police believe that many of the participants are gang members from cites in Southern California and Arizona. The Las Vegas gaming market is comprised of the largest concentration of casinos in the U.S. The primary customer base comes from other states—especially California, where the largest population center is only a three- to five-hour drive and it continues to be locked down with no restaurants, bars or retail open. Several high-profile shootings have occurred along the Strip in recent months, causing local and national attention by the media and law enforcement. Strip casinos are responding to these incidents proactively. Two casinos in Las Vegas along the Strip have recently started using metal detectors at all entrances to the casino property screening for weapons, which has never previously occurred on a routine basis. Prior to the pandemic, large entertainment venues, booked concerts and special events at casino properties have generally included metal detectors, but not for general access to the casino floor. Las Vegas police and casino security departments are working closely together to reduce and deter violent incidents from occurring along the Strip. Many Strip casino properties now have more uniformed security officers than before on the sidewalks, in parking areas and inside. Only time will tell if these measures will reduce the high-profile violent crimes from occurring, or if more intrusive measures have to be deployed by police and casino security. The Las Vegas gaming market has always resisted this security measure absent unusual circumstances, which they are currently experiencing. Many casinos located in other gaming markets have posted security personnel on all entrances, and some have had metal detectors and bag searches prior to the Covid pandemic. In June 2020, Sheriff Lombardo of Clark County, Nevada, where Las Vegas casinos are located, announced that they had started tracking violent incidents on March 15, two days before the governor of Nevada ordered casinos to close. In the next three months, violent crimes increased in Las Vegas. There was an increase in homicides by 3 percent, rape incidents were up 21 percent and robberies had increased 5 percent over the DECEMBER 2020 www.ggbmagazine.com
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Active shooter training, Squalamie, Washington
National Violent Crime
the Uniform Crime Reporting (UCR) program as those offenses that involve force or threat of force. Overall crime has actually been decreasing year after year in the U.S. since the peak in 1992, when there was a total of 14,438,200 total crimes of which 1,932,270 were violent. The latest 2019 UCR report by the FBI demonstrates that there were 8,171,087 total crimes reported in the U.S. with 1,245,410 being violent. In recent years, violent crime has remained stagnant or has increased. By comparison, there were 33 states with more violent crimes committed than Nevada in 2019. Fraud crimes appear to be on the increase also. Scams and cybercrimes have increased to those vulnerable to falling for them. Unemployment, credit card, counterfeiting and check fraud create opportunities for petty criminals to victimize people, especially the elderly. Casinos are experiencing an uptick in fraud-related crimes during the pandemic as well. Minor crimes such as property theft or non-violent crime appears to have decreased during the pandemic across the U.S. as measured by police calls for service. 2020 is shaping up to see a further reduction in overall crime and a potential increase in violent crime. With millions of people home and not working, residential burglaries have decreased overall, based on the simple fact that residents are home and not away at work creating the opportunity for a break-in or burglary. Some jurisdictions report increases in domestic violence where couples being home and with each other constantly creates more contact and more friction, leading to domestic violence. Preliminary indications are that the first six months of the pandemic demonstrated a decrease in property crimes in residential environments and in some cities in most category of crimes. It cannot be determined what the overall effect on crime the pandemic has created until it can be thoroughly analyzed by federal, state or local law enforcement, which occurs on an annual basis at the end of the year. Las Vegas is taking the right approach to reduce and deter violent crimes along the Strip with a cooperative effort between casinos, law enforcement and community leaders. Additional police and security personnel deployed in high-risk locations will certainly help to keep these out-of-town thugs from driving into Las Vegas and creating a dangerous condition for the thousands of tourists and employees who are attempting to get back to a pre-pandemic normal.
Violent and often newsworthy crimes and incidents take on amplified attention by media, even though many neighborhoods in the U.S. where casinos are located have not had an actual spike in violent crimes in the recent past. According to the FBI, violent crime is composed of four offenses: murder and non-negligent manslaughter, rape, robbery, and aggravated assault. Violent crimes are defined in
Alan W. Zajic CPP, CSP, ICPS, is a nationally recognized, board-certified expert in security and surveillance, with over 35 years of practical, hands-on experience. Zajic is a court-certified expert in many jurisdictions across the U.S. Contact Zajic at alanwzajic@aol.com.
same period during 2019. Prior to the pandemic, violent crime was down. Nevada recorded an 11.81 percent decrease in violent crime in 2019 as compared to 2018. In October, the sheriff told USA Today that the Strip violent crime was up 4 percent from the same period year to date as of October 3, as compared to 2019. The Las Vegas Metropolitan Police Department had increased its nighttime patrols by 20 percent during the “bewitching hours” on Friday and Saturday nights. Plain-clothes police were also deployed along the Strip in a proactive attempt to not only deter violent crime, to also observe and arrest offenders. Recent shooting incidents along the Strip in Las Vegas: • On October 19 at approximately 1 a.m., three men were arrested after an altercation escalated on the pedestrian bridge by Planet Hollywood and one man pulled a gun and fired it, missing the participants. • On October 4 at approximately 4 p.m., a man was brandishing a gun in and outside of the South Point. Responding armed security officers attempted to disarm the man, and he was subsequently shot and killed by security personnel after pointing the gun at them. • On October 3 at 2:30 a.m., an altercation on the casino floor at the MGM escalated to a point when one man pulled a gun, was disarmed by a bystander, and the gun discharged during the incident. • On September 27 at 3:30 a.m., an incident occurred in front of a liquor store, just off the Strip on Linq Avenue. An altercation escalated and guns were pulled and fired, and three bystanders were shot as a result. Police arrested three suspects involved, two of them 95 miles south of Las Vegas. The incident resulted in the Flamingo being locked down for several hours while LVMPD searched for suspects. • On September 22 at approximately 11 p.m., a person was injured at Aria valet after a gun was fired when a group of people got into a fight and someone fired multiple shots. • On September 20 at approximately 2:45 a.m., two strangers bumped into each other, which escalated into a shooting when one pulled a gun and shot the other five times on the sidewalk outside of Paris casino.
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10 Trends for 2021 • 10 Trends for 2021• 10 Trends for 2021• 10 Trends for 2021 10 Trends for 2021 • 10 Trends for 2021• 10 Trends for 2021• 10 Trends for 2021 10 Trends for 2021 • 10 Trends for 2021• 10 Trends for 2021• 10 Trends for 2021 10 Trends for 2021 • 10 Trends for 2021• 10 Trends for 2021• 10 Trends for 2021 ‘trends’ to for identify 10 Trends for 2021Why • 10 Trends for are 2021•so10hard Trends 2021• 10 Trends for 2021 10 Trends for 2021 • 10 Trends for 2021• 10 Trends for 2021• 10 Trends for 2021 10 Trends for 2021 • 10 Trends for 2021• 10 Trends for 2021• 10 Trends for 2021 10 Trends for 2021 • 10 Trends for 2021• 10 Trends for 2021• 10 Trends for 2021 10 Trends for 2021 • 10 Trends for 2021• 10 Trends for 2021• 10 Trends for 2021 10 Trends for 2021 • 10 Trends for 2021• 10 Trends for 2021• 10 Trends for 2021 10 Trends for 2021 • 10 Trends for 2021• 10 Trends for 2021• 10 Trends for 2021 10 Trends for 2021 • 10 Trends for 2021• 10 Trends for 2021• 10 Trends for 2021 10 Trends for 2021 • 10 Trends for 2021• 10 Trends for 2021• 10 Trends for 2021 10 Trends for 2021 • 10 Trends for 2021• 10 Trends for 2021• 10 Trends for 2021
Missing in Action
I
n last year’s 10 Trends for 2020, nowhere did we mention Covid19 or pandemic or casinos closed for months at a time. Obviously, we weren’t alone in missing that one, but in this year’s 10 Trends for 2021, Covid influences almost every trend. The impact that the pandemic has had on every industry has been astounding, but none as seriously as the casino and hospitality industries. And you’ll see that reflected in almost every trend for this year. You’ll note that the biggest trend in the view of the GGB Editorial Advisory Board is cashless gaming and all its ramifications. Not only does a player not have to carry cash to and from the casino; not only
does the casino get a super-accurate view of the players’ action so they can be comped correctly; not only is the transfer of funds more transparent and efficient, but cashless gaming can help identify problem gamblers in a more effective manner, demonstrating to the player and management that there could be some issues there. And of course, the cashless no-contact system is moving forward more quickly than expected as a result of Covid-19. So to help prepare you for 2021, we’ll always have 2020 to remind us how bad it can actually be. Good luck in 2021 now that you are fully informed. Except for the next unexpected development!
1.
Cashless: A Sudden Priority Cashless casinos have been discussed for years, and Covid-19 has injected urgency into the discussion worldwide trend in the way we pay for everything from coffee to the gym to transportation has been clear: Cash is somewhat outdated, practically everywhere. Except in the casinos, that is. As consumers around the world switched to convenient payment methods that required nothing more than a tap of a smartphone, those in the casino universe continued to fork over cash for the vast majority of transactions. From $100 bills fanned out on the craps table to the parade of bills fed into bill acceptors—ultimately to be converted to hard currency when a ticket is redeemed— cash has remained king. The role of cash has been the subject of industry trade-show panels for years, and the industry has been pushing to make cashless play available at least with the same ease as paying for your Starbucks coffee with your phone. The casino management systems of big slot suppliers and new systems from a variety of payment technology companies have made this possible, and available to casinos, for several years. But this unprecedented year has had the effect of accelerating what had been a gradual move to cashless technology in the casino. The Covid-19 crisis has made people everywhere hesitant to handle cash, knowing how easily the virus spreads—and not knowing who has touched that banknote in one’s hand
A
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Konami SynkConnect Mobile
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“Covid was the tipping point to operators, as they move from seeing the technology from a standpoint of a ‘nice to have’ to being a critical and essential part of their business operation.” —Darren Simmons, Executive Vice President and Fintech Business Leader, Everi
previously. In fact, the virus has made people hesitant to touch any surfaces where Covid-19 may rest. Thus, cashless, contactless transactions are suddenly in demand. “There is a hyper focus on this technology from customers, and has been for the past eight months,” notes Darren Simmons, executive vice president and fintech business leader for Everi Holdings. “Covid was the tipping point to operators, as they move from seeing the technology from a standpoint of a ‘nice to have’ to being a critical and essential part of their business operation. “Covid has also caused regulators to rethink strategies of how this can be incorporated into their jurisdictions while still preserving security protocol, as well as responsible gaming.” “With each passing month since the outbreak began, we’ve seen interest in a cashless wallet for casinos and related gaming gain momentum with resort operators and patrons alike, for its critical safety advantages,” says Omer Sattar, executive vice president and co-founder of Sightline Payments, which produces the omnichannel Play+ cashless funding system. “Today, the casino industry is still heavily cash-based and substantially underpenetrated by digital payment systems. We believe the majority of patrons are looking for the more modern payment options, as they are accustomed to using in their everyday lives.” “For the gaming commissions in each state, cashless was on the back burner prior to the pandemic,” comments Anthony Rabito, president of FABICash, producer of the omnichannel FABICashless solution. “Now, everybody’s talking cashless.” “It’s been overwhelming,” says Christopher Justice, president of Global Payments Gaming Solutions, of the spike in demand for cashless technology. Global Payments produces the VIP Mobility system, which Justice says can implement a cashless system as soon as regulations in a particular jurisdiction permit.
Getting it Done The ways to achieve cashless, contact-free transactions on the casino floor are as varied as the vendors providing the technology, beginning with the large slot suppliers who have added cashless functionality to their product roadmaps. One such company with an inherent advantage is Everi, which was a leader in payment processing technology as Global Cash Access before merging with the former Multimedia Games to become a prominent slot company. “Our omnichannel solutions such as the CashClub Wallet provide lowcost, high-speed deployment and deliver ROI fast with less disruption, all while preserving patron choice (cash or digital),” says Simmons. “In a situation where so many operators would need to commit large capital invest-
Everi CashClub Wallet
ments, Everi can help our customers move toward digital and cashless solutions across their enterprise with greater speed and return on investment. “Everi enables cashless play across a multitude of products (QuikTicket POS Debit, Ticket from Wallet, Chips from Debit, Chips from Wallet, gaming credit directly to the game meter), with support for game floor, retail, online, and bank-like services.” Konami Gaming offers a cashless payment module as part of its popular Synkros casino management system, including a “cashless marker” system for table games completing a field test at the Ellis Island casino in Las Vegas, in partnership with technology vendor Marker Trax. In addition to that partnership, Konami’s Synkros system includes the Money Klip cashless wagering gateway, which uses near-field communication technology to allow customers to load funds from their wallet account into a slot machine either through the player’s club card, or in a completely contact-free manner using the smartphone, which both engages the club card account and allows funds to be downloaded with a wave of the cellphone. “Konami continues to actively enhance and innovate our cashless technology,” says Tom Soukup, senior vice president and chief systems product officer. “We began by successfully introducing cashless technology with cruise industry operators in the early 2010s, and we’ve continued to advance the technology from there—providing a robust integration layer for cashless transfers to payment processors, extending the technology to mobile and soon extending cashless wagering to table games.” Other leading slot suppliers including IGT and Scientific Games have introduced cashless play modules to their casino management systems. The IGT Advantage casino management system offers the integrated Resort Wallet cashless suite, which includes technology effecting “carded” cashless play allowing funds deposited through the casino cashier or slot machine and accessed using the player’s club card; “cardless” cashless play, accessing a digital wallet via a mobile device; and, where regulations permit, a “full-service” option with an external funding gateway, which allows funds to be DECEMBER 2020 www.ggbmagazine.com
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•10 Trends for 2021 • IGT Cardless Connect
loaded directly from external bank accounts and credit cards. Any of the three options can be used across multiple properties in the same enterprise to fund slot play, table games or sports betting, and can be used at retail point-of-sale terminals. “Our proprietary external payment gateway technology, IGTPay, is fully integrated into the IGT Advantage system for a truly turnkey, end-to-end solution, which is unique to the industry,” says Ryan Reddy, IGT’s vice president, VLT, systems and payment products. “Other gaming suppliers need to connect players’ cashless wagering accounts to third-party gateway technology in order to access external funds. However, our secure IGTPay funding gateway is tightly coupled with our systems solution, significantly streamlining cashless implementation and day-to-day operations. “Our IGTPay external funding technology is now live in Sweden, and we’ve successfully operated an external payment gateway in digital gaming and iLottery markets since 2013, so it’s a tested and field-proven solution.” Scientific Games also provides a comprehensive, turnkey cashless transaction solution, tied to its industry-leading casino management system. “The SG Unified Wallet provides patrons a rich cashless experience, a single place to access gaming funds that can be used resort-wide across gaming and non-gaming outlets,” says Ted Keenan, vice president of product management for Scientific Games. “Patrons are more informed with real-time viewing of fund transfers and wagering activities displayed within their mobile app. The Unified Wallet solution offers a highly configurable back-end application to manage cashless operations. “This solution was intentionally developed to enable easier integration with payment gateways and other solutions that need access to wallet funds.” Slot suppliers are joined by a number of payment technology suppliers in pushing the cashless solutions that will come to the forefront in 2021. Global Payments’ VIP Mobility product is designed for simplicity to the end user. It enables guests to create digital TITO tickets on their mobile device by scanning an existing voucher or using their VIP Preferred e-check account. Patrons then pair their mobile device to any slot or table game by scanning a QR code. They can reload from their phone and retrieve funds once they are finished playing. The entire experience is seamless for the customer. “Part of what we wanted to do with VIP Mobility was to create an incredible customer experience, so that old, young, digital prodigies or not, folks could figure out how to use it,” says Justice. “The ability here is to have a single, casino-branded app that works throughout the resort—not only in gaming venues but non-gaming as well. Now, without talking to anybody, I can effectively download an application, register with nothing more than my phone number, and get started by uploading a TITO ticket like I would deposit a check into my bank account.” Sightline’s Play+ serves as a funding source not only for casino slots, but for iGaming, mobile sports, tables games, sports betting, horse racing and lottery gaming—“all forms of entertainment that have experienced significant growth during the pandemic,” says Sattar. “Play+ is also a robust and innovative fintech platform that allows for transactions outside of gaming on pointof-sale and ATMs worldwide via the physical Discover prepaid card that each patron receives upon enrollment. 20
Global Gaming Business DECEMBER 2020
“Most importantly, Play+ allows for immediate cash-out functionality from the patron’s gaming/wagering account, whether physically present or on a sports/iGaming platform.” The FABICashless product is another omnichannel solution that permits a fully cashless gaming experience directly at the game. The FABICashless Mobile Wallet can be funded directly from the player’s bank account, or by a debit/credit/e-check transaction through the FABICash cash access platform. The player will then transfer the funds onto their game of choice by entering a PIN, and move the winnings back to the wallet just as easily. When a jackpot hits, the attendant will process it electronically at the slot machine, using FABI Mobile Jackpot, which integrates seamlessly with the company’s cashless solutions. FABICash also offers mobile PIN debit and mobile ACH, allowing customers to buy chips in seconds without leaving their seats—just swipe, dip, or tap, print a drop copy and done. Wi-Fi and LTE connectivity and a lithium-ion battery afford no-fail redundancy. “We’re different than our competitors on cashless solutions,” says Rabito. “We have license agreements signed with most of the gaming platforms—not changing anything they do, just making it better—to allow more options to load their apps, or to cash out. “For instance, when you go to the cage to do debit/credit or e-check, instead of cash, one of the options the cashier has is to load the FABI Wallet. From there, we interface with all the gaming (casino management systems) for slots and table games. We interface real-time with their app, give them numerous options, from doing credit/debit e-check at the cage to numerous options from their phone without going to the cage, to load the FABI Wallet.”
Cashless for Good? While all the payment and slot systems technology suppliers are ready to address the new demand for cashless technology, Justice from Global Payments stresses that this does not mean cash will quickly disappear from the gaming floor. “What happens in the real world is very different than what happens in the gaming space,” he says, “because the rules and regulations for payments in
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the real world do not apply to gaming.” He adds that even though cashless payment is widely available in the consumer space, it is not being used by everyone. “Apple Pay is in use at 15 percent of all retailers in the country,” Justice says. “So, cashless hasn’t even reached ubiquity in the real (non-casino) world. Apple and Google’s rules don’t allow funding for gaming. They don’t want to participate in this environment because they don’t want the liability, or whatever their reasons. So, I think it’s going to be difficult to get to a universal wallet, if you will.” Still, the increase of cashless options on the casino floor, by all accounts, will outlive the pandemic to become a permanent part of the casino experience. Everi’s Simmons says that while demand for cash is still strong in casinos, the Covid-19 crisis has given rise to stronger priorities. “The reality,” he says, “is that interest in cash has not really dimmed, but the interest in self-service experiences, avoidance of unnecessary face-to-face interactions, and a strong, ongoing interest in convenience, simplicity, and safety will keep demand in this aspect of our products very high.” “I have no doubt this trend will continue,” agrees Sattar at Sightline. “We’ve seen this trend towards cashless gaming and entertainment coming for the last several years, and interest seems to just keep increasing every quarter. Covid has added a lot of momentum to be sure, but it’s been coming for years. A more contactless and cashless gaming experience delivers the safety and security that casino guests are seeking.”
FABICash’s Rabito adds that a combination of cash payment and cashless options is likely to remain the reality for the short term. “The older players in their 60s might be a little more resistant,” he notes. “They like to go into the casino with their cash; they like to put cash back in their wallet or purse after gambling. I don’t think in our lifetime the casino will ever be completely cashless. But the casinos are catering to the younger crowd, who are all wallet/app-savvy, and I don’t think (that demographic) will ever go back to cash.” In the long term, the trend in the consumer market toward cashless transactions will mean players—particularly in that younger demographic—will come to expect the cashless option in casinos. “I believe that once casino operators have experienced the efficiencies and the benefits of our digital wallet, and its seamless integration with the Digital Neighborhood of interconnected products, especially loyalty, they will continue to be interested in offering this cashless and contactless alternative to their patrons,” says Mike Rumbolz, CEO of Everi Holdings. “I also think that it is unquestionable that once a patron has adopted a cashless alternative, they will not be interested in returning to an environment of handling banknotes and interactions with cage tellers. When patrons can see their points, offers and cash balances in one location and then use those cash balances throughout a casino resort or at the casino’s online sportsbook, iGaming or retail offerings, this frictionless method will become their preferred medium of value exchange.” —Frank Legato
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•10 Trends for 2021 •
2. N
Gaming in the Covid Era Regional casinos show resilience but precarious days ahead
ow that four full months of commercial data have been released, it is a good time to take stock of how casinos have fared since reopening and what the results tell us about future trends. Some states opened in May, marking June as the first full month of operation. Several states opened during June, followed by a handful in July and one each in August and September. In drive-in markets, bricks-and-mortar gaming revenue has recovered to levels well above capacity limits. For example, while 57 percent fewer VLTs are in operation in New York, revenue is down by only 12 percent (weekly October data). Broadly and with exceptions, region-wide gaming revenue at commercial casinos has recovered to between 80 percent and 95 percent of 2019 levels. By contrast, the Las Vegas Strip has regained less than 60 percent of its 2019-level gaming revenue and only half the number of visitors.
The Regionals Reopen The major New England jurisdictions have generally been cautious in their reopening strategies: Rhode Island casinos initially had a reservation-only strategy, the Connecticut casinos have voluntarily kept capacity limits in place, and Massachusetts had a relatively late and gradual reopening. However, the region had recovered to 85 percent of 2019 levels by September. The strong showing in Massachusetts is largely related to rampup at Encore, which first opened in late June 2019.
In the Mid-Atlantic region, Maryland has had the greatest success, with single-digit declines in July and August and a 1 percent increase in September. West Virginia started out relatively strong but faded as competitors in Maryland, Pennsylvania and Ohio reopened. With New York finally back online in midSeptember, the region has recovered to 80 percent of 2019 levels.
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We see four factors behind these results: federal relief spending, pent-up demand, limited options for entertainment, and concentration of higher-spending gamers (win per admission has increased by 30 percent-40 percent in states that track admissions). Some of Las Vegas’ pain could be a local casino’s gain. The first two factors are expected to show diminishing effects going forward. Federal relief spending was equivalent to 13 percent of U.S. GDP, and the major consumer program—the boost to unemployment—ended July 31. Moreover, with the virus surging in all but 10 or so states, future gaming revenue trends could be less encouraging. Going forward, absent future federal relief and improvement in virus trends, we expect gaming revenue in markets that remain open to drop by five to 10 percentage points over current levels, although individual properties in undersupplied areas would likely remain steady.
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Midwest results have been highly varied. Revenue in Ohio has increased, particularly near the Michigan border. While Detroit casinos remained closed, in July nearby Hollywood Casino in Toledo saw its revenue double. Illinois casinos are down by over 25 percent while their VGT competitors are up by over 20 percent. The year-over-year comparison for Illinois may be skewed to an unknown degree by the change in reporting: effective January 2020, free play is no longer taxed in Illinois.
Deadwood, South Dakota is another market that has experienced growth since reopening, while Colorado has seen declines typical of other regionals.
The picture in Louisiana is complicated by the multiple hurricanes that hit the state in August and September. However, Mississippi fared better in June and July as well, and enjoyed two months of growth.
—Thomas Zitt is executive vice president of The Innovation Group
Nevada With consumers hesitant to travel by air, the Las Vegas Strip has been hit hard. With hotel discounting and a lack of convention business, non-gaming revenue on the Strip is likely even worse off than the 40 percent gaming revenue decline. Unfortunately, prospects for significant improvement lie beyond the horizon.
DECEMBER 2020 www.ggbmagazine.com
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•10 Trends for 2021 •
3.
Still The One Sports betting remains an opportunity for expansion in 2021
ince the repeal of the Professional and Amateur Sports Protection Act in May 2018, over half of the jurisdictions within the United States have legalized sports betting, and nearly 20 of these jurisdictions are conducting legal sports betting operations today. Sports betting continues to grow with the emergence of new markets in states such as Tennessee (which launched at the beginning of November), as well as more established jurisdictions such as New Jersey (which is currently at a similar level to Nevada in terms of handle). All the while, new operators and brands are being introduced in the space, and new deals are being announced across the spectrum of sports among operators, teams, leagues, media and other stakeholders. Sports betting was widely successful throughout the 2020 election with initiatives on the ballot in Maryland, Louisiana and South Dakota. Each of these three states saw overwhelming support in their passage, with voters firmly indicating their desire to establish a legal market for sports wagering. Nebraska additionally legalized sports betting through three separate initiatives that legalized “all games of chance,” receiving a similarly high level of support from the voters. Taking sports betting to the ballot has proven to be effective across the United States, provided that a proper education campaign is in place to illustrate the benefits of legalization. The greatest challenge facing the legal market continues to be its ability to compete with the vast illegal and offshore wagering market that offers competitive odds and convenient payment methods to players. Furthermore, many players are familiar with the technological interface of a black-market mobile wagering operation, and converting these players to comparable mobile options in the legal market will take time. The best defense against illegal wagering is a competitive market in a strict regulatory environment that enables suitable operators to offer attractive promotions and mobile applications to maximize player engagement. Over the last several months, jurisdictions that offer legal iGaming have also seen significant growth in revenue, with many brick-and-mortar facilities closed or limited in capacity due to the pandemic. iGaming can complement land-based casinos, and the tax revenues have provided a supplement to state budgets as brick-and-mortar revenues continue to rebound. However, the case for iGaming is met with greater opposition than sports betting, which is more commonly viewed as mainstream. Additionally, interpretations of the Wire Act are in play with iGaming, sports betting, state lotteries, and other forms of gaming. Legislators, regulators, operators and the general public still need education on the benefits of iGaming and the hurdles that are involved in the process before it sees the same expansion as sports betting across the United States. Going into 2021, multiple states will either continue the discussions that started prior to the lockdown this past spring, or launch new efforts for those states that may be just beginning to have the conversation. These discussions will be amplified as numerous states face unplanned budget deficits resulting from the pandemic. The key to the emergence of sports betting in any jurisdiction will be to create a competitive market that allows quality operators to bring the highest level of investment while maximizing the revenue opportunity to the state with low tax rates that foster these developments. Responsible gaming measures are also key in these discussions to direct a portion of tax revenues to resources, education, and research into the market. The following list includes other key items that should be monitored regarding sports betting in 2021:
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The sportsbook at Caesars Wild Wild West in Atlantic City rivals anything in Las Vegas, while the DraftKings sportsbook at Resorts Atlantic City is smaller and more intimate
• Significant resources will be spent on player acquisition and first-to-market access as new states enter the legal sports betting arena. Operators will continue to be challenged to generate the levels of revenue that can justify ambitious marketing habits to capture and sustain market share. • Tribal gaming jurisdictions will look to introduce sports betting. Michigan provided a solid example of a state where commercial and tribal gaming can coexist while keeping the existing tribal gaming compacts intact to allow gaming expansion. • Product offerings will evolve as players demand further engagement, including players in illegal and offshore markets. This will also include the incorporation of live streaming into sports betting applications that will be a critical component of future engagement, along with robust in-game wagering options. All of this must be supported by fast and reliable data feeds. • Sports teams will seek additional revenue streams from the very activity that had been fought by the leagues for years. This may include direct gaming licenses, sportsbooks within stadiums, and data agreements to gain revenue share while likely avoiding licensure requirements from gaming regulators. However, these groups are chasing pennies while stepping over dollars that could be earned through sponsorships and fan engagement. • Mergers and acquisitions will accelerate throughout the marketplace, with the Caesars/William Hill agreement likely to be one of several landmark deals that occur in 2021. Sports betting has still only just kicked off in the United States. It remains an area of growth for operators to capture revenue that has been lurking in the shadows for years. Sports betting provides an avenue to attract new gamers who may not be viewed as a traditional casino customer, as well as other non-gaming customers seeking further engagement in sports. With the proper education efforts in place, the opportunity remains strong to establish a strict and competitive market that enables well-established bookmakers to compete with the illegal market throughout the United States. —Jack Gallaway is an associate with Global Market Advisors (GMA).
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•10 Trends for 2021 •
4. Looping In Latin America Opportunity abounds in 2021 for LatAm, but uncertainty remains he gaming market throughout Latin America continues to emerge. While gaming has been a strong form of entertainment, Latin America can be a mystery to some that have not followed it as closely. Like Asia, it remains one of the great opportunities for expansion in the industry on a wide scale, from sports betting to further development of brick-and-mortar facilities from Mexico to Brazil to Uruguay. Many of these governments at all levels continue to face challenges as they had relied on gaming as a source of tax revenue prior to the Covid-19 pandemic as revenue is still rebounding. This has further put burdens on governments, as those employed in gaming have also struggled in 2020 with facilities operating under limited function post-shutdown and in some cases will remain closed until the end of 2020. As in other parts of the world, issues of taxation and regulation are the dominant factors that come into the success of the market. These are two of the questions that any operator is concerned about as they enter a market, as well as continue to operate in a jurisdiction. Major changes and disruptions in a market can force individuals to alter their business activities or not consider a market if it becomes too challenging. A key example of this was at the end of 2020 when Jalisco, Mexico imposed a 10 percent tax on player winnings in addition to the existing casino tax. The unbanked community also raises challenges that will continue into 2021. While these individuals are not typically dissuaded from finding ways to gamble, this does create additional challenges for operators and regulators as they seek to provide sound financial policy to ensure that games are fairly regulated and implement anti-money laundering measures. Payment systems and cashless technologies remain a strong opportunity in the LatAm market as operators continue to unravel the unbanked community’s access to gaming. Brazil tends to get the most attention because of its long-rumored movement to allow integrated resorts. However, the movement at the end of 2020 was largely focused on the lottery. Scientific Games and IGT teamed up to jointly run the national instant lottery from LOTEX and were granted a concession in October 2019. Earlier this year, the two companies issued a statement that they were no longer pursuing the agreement due to the failure to execute an agreement with CAIXA, the largest lottery network. This was in addition to the ruling by the Supreme Court of Brazil stating that the federal government’s monopoly on the lottery was unconstitutional. This allowed the 26 states in Brazil to consider their own individual lotteries, adding further layers to an already complicated playing field. Sports betting, which is currently undergoing the regulatory phase, and the continued discussions over IRs will be key in the future of gaming in Brazil in 2021. Uruguay launched another process for integrating a casino into a five-star hotel on the Rocha coast. This is the second integrated resort development in the country that announced a project in Punta del Este that was spearheaded by Giuseppe Cipriani. Uruguay, unlike some other markets in the region, provides a tremendous amount of stability and a positive regulatory environment.
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Additionally, there is a tremendous amount of wealth that exists in the region to help supply the local market. Uruguay can continue to grow as a destination within South America if it provides the right tools for operators leading into 2021. Gaming continues to evolve in countries such as Argentina, which is debating how to regulate online gaming that is already operational in some provinces. Recent changes to the regulatory structure in Colombia, which oversees the lottery and gaming concessionaires, allowed expansion to facilitate sales at the territorial level. Mexico, Peru, Chile and others provide strong markets where opportunities may arise in 2021. Sports betting, online gaming, brick and mortar, lottery, and local games of skill or chance provide opportunities for existing operators to rebound in 2021 from the Great Shutdown, as well as allow other new market entrants to look to new revenue sources in expanding markets. While the opportunity for gaming expansion remains strong, Latin America continues to show some signs of uncertainty as it looks to expand. As operators, both local and global, look for additional revenue sources to grow their business, Latin America can provide a solid opportunity provided that the right market is created that allows strict regulation in a competitive market. —Brendan D. Bussmann is a partner and director of government affairs with Global Market Advisors (GMA).
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5.
How will big trade shows like London’s ICE make a comeback?
Getting to Zoom Conferences and trade shows are changed forever in the wake of the pandemic n January of this year, I decided to back off something that I had been dedicated to doing my entire career: elevating the educational opportunities for mid- and upper-level managers so that the quality of their performances would be improved and their path to success made easier. As one of the founders the Southern Gaming Summit and the American Gaming Summit in the mid-1990s, to launching shows on the racino business and casino design, to 17 years as a consultant to G2E, I was always trying to improve the way we educated our attendees. And the results were palpable. There was great feedback because the content was strong and the results were quantifiable. I wanted to take it higher after leaving G2E, so we began the Gaming & Hospitality Education Series that was held through the cooperation of William F. Harrah College of Hospitality at the University of Nevada, Las Vegas. Our idea was to combine live attendance with virtual learning so people from all over the world could join the discussion. But after a couple of years, I realized it just wasn’t cutting it. Yes, the quality of the speakers and the presentations was excellent. The support from the industry was extraordinary. The feedback was good. But something was missing, and I couldn’t put my finger on it. So we decided to end it. Now to be honest, there were some other reasons to make that decision, both organizationally and financially, but I just knew it wasn’t working the way I had envisioned. Two months later, the pandemic hit, and I was very glad I had ended our series, but almost immediately realized that there was a need to address the crisis. So by the end of March, we had partnered with The Innovation Group and Regulatory Management Consultants from Michigan and conducted a six-part series—all virtual, of course—on how the industry was grappling with the various elements of the shutdown. It was early in the pandemic and attendance was amazing. Thankfully, neither GGB, The Innovation Group nor RMC depend on conferences and/or trade shows as our main source of income, so we could offer the sessions free of charge. We also didn’t accept sponsorships so the presentations would be fair and balanced. Given this background and my experience with all-virtual conferences—both as a speaker and attendee—here are a few suggestions on how to make it better. 1. Have an overall emcee for the program. At one conference, I was asked to kick it off with a one-on-one interview with an important executive. But no one was there to welcome attendees, introduce me or explain what the conference was all about. An emcee is crucial to keep the audience engaged, explain what’s coming up next, and generally to keep it all together. 2. While I understand that recording the sessions beforehand makes it easier to control and present quality content, it also strips it of the immediacy, and also the human errors that make a seminar enjoyable. So keep it live if possible. 3. Make it very interactive. We all know the “chat box” by now. Have the
I
moderator monitor the chat box and ask a relevant question from the online audience at any time during the session. At “live” seminars we all know the experience of the moderator asking for questions at the end of the session and no one raising their hand. They’re usually looking forward to the networking session, lunch or even a bathroom break. Not so online. There are lots of relevant questions that can be posed at any time, keeping the audience engaged. 4. Don’t charge too much. In my experience US$100 is the tipping point. The expectation that you’ll be able to get even a fraction of what you would in person is irrational. You’re not giving them the live experience and they won’t pay for it. Also consider your sponsors. They’re paying for butts in the seats, so a high fee is not going to help that, no matter how good your content is. Better yet, make it free and your sponsors will be very happy with the response. 5. Be prepared. At “live” conferences, preparation is always hit or miss. Sometimes your panelists will be very engaged, other times, not so much. In a virtual session, it’s crucial everyone know their roles and how they’re going to deliver them. An excellent moderator is also a must. Unfortunately, I have no suggestions for the trade show component. Trying to reimagine an immersive experience on the internet is almost impossible. Maybe if we all were wearing those virtual reality goggles it might come close, but that’s another technology that hasn’t reached its peak performance yet. For slot makers, if you can’t see and touch the games; if you can’t get the total experience of sitting in the seat, pushing the buttons, hearing the sounds—and often feeling the vibrations from the seat or seeing the 3D imaging—it’s just not the same. For systems providers and other products, it might be easier to demonstrate online, but there’s also the visceral in-person atmosphere, surrounded on all sides by the chaos of a trade show floor. Nothing online can reproduce that. And product demonstrations are just glorified commercials, so unless you’re in the market for that specific product, it’s a waste of time and money. So, what’s the future for conferences and trade shows? Those companies that are totally dependent upon them undoubtedly have a better handle on this than me, but the questions that plagued me when we shut down our Gaming & Hospitality Education Series remain. When you’re limited to virtual conferences, you miss that networking function. And the trade show online still has miles to go before there’s even light at the end of the tunnel. We recently conducted a survey on our GGB News website, and more than half the respondents said that the virtual element is going to be a part of any meeting or conference going forward, so we’d better figure it out fast. Vaccine or not, this is going to have to occur sooner rather than later because the “new normal” for this type of endeavor just isn’t working. —Roger Gros DECEMBER 2020 www.ggbmagazine.com
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•10 Trends for 2021 •
6. A Rising Sun? Will 2021 finally be the year of Japan’s IRs? ike the rest of the world, the development of integrated resorts in Japan has been significantly stalled because of the Covid-19 pandemic. Japan is just beginning to reemerge as it is now starting to allow foreigners back into the country. While many speculated that 2020 would be a robust year for the integrated resorts, it looks like Covid, like the rest of the world, will push IRs back into 2021 as things finally start to move down the road. Earlier this year, Japan transitioned from Prime Minister Shinzo Abe stepping down for health reasons to the current Prime Minister Yoshihide Suga. Suga, who was Abe’s top lieutenant, has been a strong proponent of the integrated resorts initiative. His ascendancy was the ideal outcome in terms of the succession from Abe. Suga will not be a caretaker prime minister and wants to leave his own stamp over the next year coming into a fresh election next September. The development of IRs received a boost in October when Suga provided an update on the timeline to shift the receipt of proposals at the national level, moving from January through July 2021, back to October 2021 through April 2022. While some may view this as a delay, it was inevitable because of the challenges experienced around the globe with the Great Shutdown that prevented local prefectures from also putting forward their local time frame. The timeline is still rather tight, especially as the world continues to grapple with the pandemic. Because of the slow opening of borders, it may not be surprising to see another small shift to accommodate the continued challenges. At the same time as the shift in the timeline, the government also released its latest draft of the Basic Policy with a 30-day period for public comments that ended at the beginning of November 2020. While the changes were mostly minor and address some of the recent challenges with Covid-19, operators were looking for further definitions on important topics including taxes, license term, and spatial considerations as a reaction to the pandemic. These were not addressed in the most recent version of the Basic Policy and are issues that still need to be resolved, or else some operators may vacate their existing development plans just as Las Vegas Sands had previously done in May 2020. The Basic Policy still needs to be solidified in a cabinet decision that will happen in either late 2020 or early in 2021. One of the many questions that have come out of the Great Shutdown are the spatial requirements for the IR. This includes the 3 percent of gaming space to the amount of required space for MICE. Both of these come under the challenges post-shutdown as what happens if the gaming, which serves as the economic engine, is limited even further should a pandemic rise again, but also the vast amount of space required for MICE and other non-gaming amenities. Observers need to monitor if changes may occur in the makeup of IRs but will continue to be
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New Japanese Prime Minister Yoshihide Suga, like his predecessor Shinzo Abe, supports IRs, but there are other factors in play for 2021
dominated by non-gaming. As one looks ahead to 2021, there are still many issues facing potential operators that will submit RFPs to local prefectures. The first of these is that the local prefectures must spell out their own policy once the national Basic Policy has been set, as well as laying out their timeline for the selection process. Potential IR locations including Yokohama, Osaka, Wakayama and Nagasaki will begin these operator selection efforts and become the main focus in 2021. For those prefectures that are still interested in the selection of a partner for one of up to three licenses that may be issued in Japan, timing is getting short on launching a process to select an operator and meet the current deadline of April 2022. There are many issues that still need to be worked out in 2021 as interested parties observe what happens next in the process that has been over 20 years in the making. This includes the challenges that exist on the geopolitical landscape in Asia and throughout the world. Prime Minister Suga is trying to navigate those waters with his neighbor to the west in China, as well as Japan’s relationship with the United States. There are other issues that need to be sorted in order to continue building the attractiveness of the market and keep strong operators interested, as well as provide some assurances that the market will remain stable. This includes building the relationship between operators, the Ministry of Land Infrastructure Transport & Tourism, and the regulatory body in the Casino Regulatory Commission. The further promotion of IRs and the positive impact that they can have in terms of additional entertainment, investment, job growth and tourism growth remain an opportunity for the industry and its partners to seize as the industry continues its development in 2021. The first IRs are more than six years away from opening in Japan. There is a considerable amount of work to be accomplished in 2021 to make this a reality. However, the focus on the process will come from Suga to continue the efforts so that as Japan rebounds, and it has some additional opportunities to drive tourism beyond the Tokyo Olympics that are expected now to take place in 2021. The opportunity remains strong for IRs in Japan, but 2021 will be a key year in determining significant parameters to the future success of the market. —Ayako Nakayama is the representative director of the Japan IR Association, and Brendan D. Bussmann is a partner and director of government affairs with Global Market Advisors (GMA).
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•10 Trends for 2021 •
7. People Get Ready The coming boom in online gaming prevalent theme across worldwide markets is an increase in online gaming activity, and a natural question is whether we expect a lasting impact of this online growth on bricks-and-mortar gaming. Public markets certainly seem to believe in iGaming stocks. As evidenced in the top chart, the iGaming sector index has handily outperformed all other gaming indices this year. While stock trends do not always reflect market realities, investment decisions are typically grounded in market research, and The Innovation Group has received requests for such information and market research from a handful of investment banks and private wealth managers to this end. In addition to stock trends, The Innovation Group is following online gaming revenue trends, comparing online revenue production in pre-Covid months, during brick-andmortar closures, and within the (recent) reopening period. Academic research from Europe, Canada and the United States examining online gambling behavior changes due to Covid-19 shows a notable increase in iGaming since the onset of the pandemic and through subsequent casino closures. In some cases, up to two-thirds of the current online player base never played online before the pandemic. While we have not yet ascertained the “staying power” of these new online gamers, early data out of the U.S. does not indicate a mass exodus of new online gamers following casino reopenings. As the charts for New Jersey and Pennsylvania at right illustrate, there was a rapid increase in iGaming activity at the onset of Covid-19 and a greater increase as casinos closed. Despite a minor decrease in online play when casinos reopened, iGaming revenues seem to have stabilized at a run rate consistent with the highest levels achieved thus far. It remains to be seen if these new online gamers will remain long-term and whether there is a substitution factor where online gaming revenue replaces traditional casino revenue. While bricks-and-mortar casino revenue continues to lag, this could still be tied substantially to capacity restrictions and health concerns related to Covid-19. Given these two uncertainties, we reserve judgment on whether there will ultimately be a larger base of combined gaming activity, and how the share of online versus bricks-and-mortar revenue will evolve.
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N ew Jersey M onthly iGaming Revenue $90M $88M $80M
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Land- based casinos closed March 16, 2020. All properties, excluding Borgata, reopened July 2, 2020. Borgata reopened July 26, 2020
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Land- based casinos began closing March 14, 2020. Properties began reopening June 9, 2020.
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Brian Wyman, Ph.D. is senior vice president, operations and data analytics for The Innovation Group.
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Tribal casino design changes are in focus as expansion continues in Indian Country, as at the Desert Diamond West casino owned by the Tohono O’odham Nation, and created by HBG Design Group
8. Tribal Challenges Beyond sports betting, which is on the minds of every tribal gaming official, other things are taking precedence here are two definitions of a trend, one indicating a general direction in which something is developing or changing (“an upward trend”) and the second referencing a fashion or moment in time (“the latest trend in modern art”). Looking ahead during a global pandemic to predict the 2021 trends in the tribal government gaming industry requires addressing trends in both senses of the word. Of course, tribal government gaming is not a single industry but rather an umbrella term for the vast diversity of tribal nation (re)building efforts that rely on operating gaming facilities across the United States. Starting in March 2020, tribal leaders had to manage at least two crises at once: protecting the health and safety of their citizens, employees and guests while simultaneously maintaining a fully functioning government without their main revenue source. The total shutdown of over 470 tribal gaming facilities, which represent tribes’ most critical economic lifeline, has devastated tribal economies and communities. One trend that is a sure bet is that tribal leaders and communities will continue to double down on their public health commitment by investing heavily in health and safety protocols for tribal community operations and businesses, including gaming facilities.
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Focus on Health and Safety as a Tribal Gaming Brand Promise It has become clear that the pandemic has accelerated many changes in society, and Indian Country is no different. Regardless of the size or features of a particular operation, tribal government gaming in most regions can still be described as a “locals market” since tribal operators are embedded in the community through shared geography as well as strong employee and guest relationships.
Often the largest employer and social hub in the region, tribal properties cultivated safety and security as a de facto brand even before the pandemic. This emphasis on hosting guests to Indian Country has intensified, and these strong relationships between the tribe, the employees and the guests have become even more important during the social distancing era. This trend of building strong community and business relationships based on trust, safety and public health will continue into 2021 and beyond.
Repurposing Casino Spaces and Embracing the Outdoors While the pandemic has intensified certain historic trends, current social distancing requirements are also creating a new fashion in Indian Country: a new embrace of open spaces both inside casinos and in nature. The 2020 trend of repurposing indoor casino spaces (including moving smoking sections and games outdoors) will extend to tribal gaming facilities, taking a back seat to tribal recreation campaigns featuring health and wellness based on recreation on tribal lands. The pent-up demand for access to open spaces is encouraging tribes to embrace geo-tourism and recreation activities that include the outdoors. Indian Country has abundant natural beauty, and tribal communities are generous hosts even beyond gaming. In 2021, tribal communities will extend access to their natural spaces for visitors who in the past may have visited the tribal casino or event center but are now seeking longer visits that may include the entire family or even remote work stays. Tribal campgrounds, RV parks, canyons and lakes will be made available in ways that integrate tribal gaming with cultural tourism and recreation. This integration highlights the unique purpose and location of tribal gaming while highlighting the benefits of being together at a time when we are supposed to be far apart. By welcoming visitors safely and extending the invitation beyond the casino offering, tribal communities in 2021 can ensure this trend becomes the new fashion. —Dr. Kate Spilde is a professor at San Diego State University and endowed chair for the Sycuan Institute on Tribal Gaming. DECEMBER 2020 www.ggbmagazine.com
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•10 Trends for 2021 •
9. That’s Entertainment Shows return to Las Vegas, but when will they be back in force? aesars has broken the ice. Entertainment returned on the Las Vegas Strip in late October, perhaps launching an industry breakthrough in this important gaming sector. “There is a tremendous amount of importance for the return of live entertainment, not just in Las Vegas, but throughout our entire industry, and we are pleased that Caesars is displaying leadership,” says Jason Gastwirth, president of entertainment for Caesars Entertainment Corporation. “It is impressive to see everyone collaborating. We are excited to be bringing it back at this level.” As Caesars Entertainment will follow applicable guidelines set forth by health and government authorities and implement the company’s enhanced health and safety protocols, guests can expect verbal health screenings, non-contact temperature checks, modified seating for social distancing, mandatory masks for guests and staff, limited capacity and more. Starting in late October, Caesars opened up four shows: X Country at Harrah’s; Absinthe at Caesars Palace; Piff the Magic Dragon at Flamingo; and Tape Face at Harrah’s. Guests can also look forward to enjoying complimentary live musicians across the city in many Caesars Entertainment lounge/bar offerings. “Everyone has shown a great level of patience,” Gastwirth adds. “They understand how important it is that we have to start somewhere and hopefully grow our audience levels over time. “We have been working closely with artists and show producers who understand this. As we get into 2021, we will hope to get where we want to be. Our entertainment business was at an all-time high prior to the pandemic.” Gastwirth says certain things will remain in place moving forward. The use of technology, especially involving mobile ticket and ordering, will be significant aspects of the new era. A few days after the Caesars announcement, MGM Resorts revealed it would reopen seven shows in early November, including David Copperfield, Carrot Top and Brad Garrett’s Comedy Club.
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“Everyone has shown a great level of patience. They understand how important it is that we have to start somewhere and hopefully grow our audience levels over time.” — Jason Gastwirth, President of Entertainment, Caesars Entertainment 32
Global Gaming Business DECEMBER 2020
“For us, it’s about leadership to show how a venue can reinvent itself even in a pandemic environment.” —Tom Cantone, President, Sports and Entertainment, Mohegan Gaming & Entertainment “After eight months, it’s time to bring entertainment back to the Entertainment Capital of the World,” George Kliavkoff, MGM Resorts’ president of entertainment and sports, said in a release. “While there is still a long road in our city’s recovery, the reintroduction of these shows is an important first step. November 6 is going to feel very special as we welcome back team members and guests and bring the curtains up for that first time.” On the other side of the country, casino entertainment legend Tom Cantone, president of sports and entertainment for Mohegan Gaming & Entertainment (MGE), wondered how entertainment would return and knew he had to be proactive, and that it could begin with sports. “I sat in my office surrounded by 8 million square feet of darkness, thinking of ways to stay relevant during this unprecedented time,” Cantone says of those early days in March. One of the sports that didn’t depend heavily on fans in attendance was mixed martial arts (MMA). The UFC has actually taken over a manmade island off Abu Dhabi to stage its televised events. Cantone had a similar idea and contacted Viacom, which televised the fights of the MMA organization Bellator. Cantone proposed that Bellator use the resort’s arena to broadcast events for the company’s sports brands. The result was a residency partnership with Showtime Championship Boxing and Bellator MMA, with fights broadcast live on Showtime and the Paramount Network. Bellator kicked off the residency on July 24, and Showtime launched August 1 with a bout between Angelo Leo and Tramaine Williams for the Junior Featherweight World Championship. And in October, Cantone announced a series of partnerships that will created a “bubble” at Mohegan Sun and host early-season tournaments with as many as 30 colleges participating. They will be broadcast live from the Connecticut property beginning November 25 through December 5. Because of the boxing and MMA events, Mohegan Sun had already developed protocols for coronavirus testing, cleaning and managing sports during the pandemic. It also has its own medical staff and facilities to treat and isolate anyone who may be infected. “We’re just following the playbook we’ve already established and has been working brilliantly,” Cantone says. “We will just continue to do what we’ve been doing with our doctors and protocols. So far, it’s worked flawlessly.” Cantone was pleased to be able to get at least some of his team back to work, when sports and entertainment before live audiences is still not possible. “It’s an incredible endorsement for our team,” he says. “We found a way to beat the pandemic. “For us, it’s about leadership to show how a venue can reinvent itself even in a pandemic environment.” —Dave Bontempo and Bill Sokolic
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10.
Physical lottery tickets will soon become a thing of the past as state lotteries in the U.S. realize that they can sell them online and even mimic casino slot games
The Battle Heats Up Lottery is increasingly invading gaming’s space, and the results could be ugly t’s always been an uneasy relationship between the casino industry and lotteries in the United States. In most gaming states, except for Nevada and Mississippi, lotteries already existed when gaming was legalized. In some instances, lotteries campaigned against the legalization of casinos, concerned they would impact their sales. Conversely, Nevada and Mississippi gaming had successfully lobbied against lotteries until last year, when lottery tickets finally went on sale in Mississippi. And it was only legalized for physical ticket sales; online sales are prohibited under the statute. Nevada has thus far been able to keep lottery proponents at bay, although during the recent pandemic, there was talk of reviving a lottery legalization push for a state that desperately needs revenue after three months of no gaming taxes. It only makes sense for lotteries to sell their tickets online. When the Justice Department ruled in 2011 that the Wire Act only applied to sports betting across state lines and not online gaming of other sorts, including casino games and poker, lotteries were also exempted. Being publicly owned and therefore very risk averse, few lotteries took advantage of the opportunity. Today there are still only a handful of the 48 lottery states and jurisdictions where lottery tickets are sold online. As of late 2019, only 10 states permitted online ticket sales and/or online instant games: Georgia, Illinois, Kentucky, Illinois, North Carolina, Michigan, New Hampshire, Rhode Island, Virginia and Pennsylvania. It’s that last state, however, Pennsylvania, that has caused more agita for the online gaming industry, and more are likely to join that parade as it becomes clear how much the lottery is earning. In early 2018, Pennsylvania launched its “iLottery” with games that mimic online slot games. Casinos in the state that pay a $10 million licensing fee to participate in online gaming, plus a hefty 54 percent tax on gross gaming revenue earned from those games, were outraged. Seven of the state casinos formed a coalition to get the iLottery declared illegal. A spokesman for the group outlined their objections. “The actions of the Pennsylvania Lottery are illegal,” he said. “To make matters even worse, the agency is promoting casino-style gambling to teenagers. Pennsylvania casinos must follow very stringent regulations on underage gaming or face millions of dollars in fines. Meanwhile, the lottery is openly violating the law and marketing these games to anyone as young as 18. Not to mention, any loss in casino revenue will hurt Pennsylvania’s tax collection for property tax relief and local improvement projects funded by gaming tax dollars.” The coalition pointed out that several of the slot games were the same names or themes as games found on the floors of state casinos and online gaming sites. A year later, a state court ruled against the casinos, refusing to issue an
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injunction to halt the games. The suit is ongoing. In the meantime, other states have taken notice. Several have launched iLottery systems similar to Pennsylvania, and after a slow start, online state lotteries threaten to catch up to and even surpass online casinos. The example of New Jersey, where online gaming tax revenues continued to roll in after all land-based gaming was shut down, apparently has resonated with lotteries, which aren’t taxed and keep all the revenue. Should this alarm commercial gaming companies, and even tribal gaming entities that may someday get into online gaming? Of course it should. First, lotteries are basically unregulated. Yes, there’s oversight from the state because they are publicly owned, but what state official would turn down extra revenue, even if it is ill-gotten? And lotteries have notoriously low payback percentages to players, mostly less than 50 percent of the money played on the lotteries. Does this apply to online iLottery games as well? Hard to tell, because most states don’t report a win or payback percentage. Should they truly only pay back in the 50 percent or even as much as 70 percent, it is still far less than casinos are required to return to their players. So, iLottery players will soon be turned off by this lower payback and be resistant to play any kind of online slot game. And let’s not even begin to talk about lottery-operated online sportsbooks! The DC Lottery admits to keeping a much larger percentage of the bets than commercial online sportsbooks. And the Tennessee Lottery penciled in a requirement to hold 10 percent of the money wagered, more than twice what an online commercial sportsbook would hold. These situations continue to encourage betting on illegal offshore sites, which have none of the regulatory or ethical restrictions that commercial sportsbooks are required to obey. So the skirmish with the lotteries threatens to erupt into an all-out war, or even worse, a surrender to the lotteries and the loss of the golden opportunity to create a vibrant and transparent online gaming market. —Patrick Roberts
DECEMBER 2020 www.ggbmagazine.com
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WHAT THE
HACK!
Several casinos and gaming firms have become victims of hackers, but how can you make sure your casino is protected?
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BY ANDY GOLDBERG
ache Creek Casino Resort, a beautiful property located just east of Napa County, California, shut itself down on September 20, and remained closed for three full weeks, reopening on October 12. This was not a coronavirus or health-related shutdown, nor was it due to wildfires. Cache Creek closed down due to a “major computer systems disruption,” according to their OPAQUE PROCESS press releases. Covid-19 has adjusted everyone’s Unfortunately, one thing all of these victims have idea of “unthinkable,” but prior to 2020, a selfin common is a lack of transparency into what eximposed, multi-week casino shutdown would ceractly happened. The most powerful action a hacktainly have fit that description. ing victim can take to weaken cyberattackers is to Cache Creek is not an amateur organization. share their methods and attack vectors, so similar It’s a 2,700-slot, 120-table facility with a hotel, operators can lock down those vulnerabilities on golf course, spa and showroom, and presumably, a their own networks. capable and talented IT department. Although This isn’t sufficient to fully prevent future atCCCR’s public communication lacked specifics, tacks, because malware authors are constantly getthe length of the shutdown—along with reporting ting more sophisticated, but it certainly helps to Cache Creek Casino Resort from the Sacramento Bee that the FBI is investistop repeats of the same attack at multiple compagating—strongly indicates that they were a victim nies within an industry. of a “ransomware” attack. Additionally, refusing to reveal details prevents casinos from evaluatRansomware attackers are rarely interested in stealing data per se; their ing the security practices of the system vendors upon which they rely. goal is to prevent you from accessing your own data and systems by encryptCasinos integrate CMS, LMS, POS, databases, marketing automation ing everything, then selling back the decryption key. Ransomware attackers tools, payment processors, kiosks, revenue optimization software, business migrated from locking up personal computers to corporate networks because intelligence platforms, payroll and timekeeping systems, and allow access they can extort far larger prices from large companies, municipal governto internal applications to tons of external service providers, such as Expements and health systems than from individual users. Ransomware attacks dia, OpenTable, Ticketmaster, in-room entertainment vendors, Wi-Fi have accelerated greatly, according to a Bitdefender report claiming a sevennetworks, unlock-via-mobile-app providers, even LED lighting confold increase between 2019 and 2020. trollers, climate-control monitors, housekeeping pollers, and many more. This latest attack (actually it may not be the latest, as Clearwater River If any of the cyberattacks can be traced back to a third-party service, Casino and It’se Ye-Ye Casino were closed October 12-19 due to “technical or if a specific vendor’s software is a common factor among the comprodifficulties,” according to their Twitter feed) can be added to a list that is getmised networks, it is essential to make that information public so other ting worrisomely long: Four Queens and Binion’s in Las Vegas (suspected operators can avoid that vendor, or the vendor is pressured into securing ransomware), sportsbook vendor SBTech (forced to set aside $30 million), its software. Hard Rock Casino Las Vegas (twice), Eastern Band of Cherokee Indians Truthfully, major CMS vendors have made life difficult for security (confirmed it paid a ransom), MGM Resorts (10 million-plus customer and IT teams for a very long time. Casino management systems are records exposed), Las Vegas Sands (potential $40 million total cost), Affinity closed, proprietary systems with extremely wide reach into virtually every Gaming (also twice), multiple national hotel chains, and possibly other area of a casino’s operations—finance, accounting, marketing, operations, casino properties, partners and vendors whose attacks remain undisclosed. tax compliance, complimentaries—and the underlying database contains
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THE MOST EFFECTIVE WAY TO THWART A RANSOMWARE ATTACK IS TO HAVE RECENT, COMPREHENSIVE BACKUPS OF ALL DATA, STORED OFFLINE SO THEY AREN’T THEMSELVES ENCRYPTED.
all player records, including physical addresses and driver’s license information. Meanwhile, vendors employ many anti-security tactics, such as not sharing source code, storing data in plaintext (rather than utilizing encryption-at-rest), slowly investigating or fixing bugs, not fully documenting all aspects of the software, and severely limiting distribution of that documentation. Additionally, inter-system communications (between games, servers and applications) are either entirely proprietary or follow protocols developed by the International Gaming Standards Association, an organization whose lowest membership level costs $11,200. Of course, not every vendor is guilty of every violation here, but none are fully compliant with modern security standards and recommendations. Because of the lack of access, it’s impossible for independent security experts to audit the systems or to perform “pen-testing” (simulated hacking on behalf of the customer to find vulnerabilities that actual hackers would try to exploit). Casinos are essentially beholden to vendors to ensure their products are secure, but have no way to verify they are. Nor are regulators and auditors much better. Most programs designed to thwart cyberattacks are outdated, many designed well before the existence of modern ransomware.
LACK OF CLARITY To be clear, there is no proof that any CMS, or any specific vendor’s software, has been compromised. The lack of disclosure from any of the victims prevents anyone from knowing. However, when a casino is closed for three weeks, it’s fair to assume that attackers got to the heart of the network and its most valuable data. The most effective way to thwart a ransomware attack is to have recent, comprehensive backups of all data, stored offline so they aren’t themselves encrypted. This way, you can restore the backups and ignore the ransom demand (not entirely, as attackers will threaten to sell private data, which is why encryption-at-rest is essential). Unfortunately, the secrecy surrounding vendor software makes it extremely difficult for a casino to plan or implement a backup and restoration process that is reliable, repeatable, and which can be continuously performed in the background without interrupting normal service. Simply put, if the casino isn’t fully informed on how each system works, where the most essential data lies, and what the underlying software stacks are, it’s just guessing when it comes to backing up. Although vendor software usually relies on common, commercial databases (SQL Server, Oracle, DB2, etc.) underneath, casinos can’t always utilize those databases’ built-in backup or security features, or features provided by reliable third-party vendors and consultants, because the casino is never in full control of the data source and is unsure how it interacts with the application. Whichever CMS system Cache Creek runs, that vendor shouldn’t be protected by the casino’s silence. If it has become aware of vulnerabilities that could potentially affect other casinos running the same system, it is obligated to warn its other customers and to quickly create and distribute patched software.
The good news is that the gaming industry has strong trade groups and professional organizations, such as the American Gaming Association, National Indian Gaming Association, and many regional groups. Although casinos are generally in fierce competition with each other, when facing an external threat, like cyberattacks, they tend to unify, in partnership with vendors and regulators, to combat the threat together. If these trade associations choose to take the lead in prioritizing cybersecurity, they have a number of levers to employ. They can pressure attack victims to share details of the attack—how the intrusion started, their full software stack, what vendor systems were compromised, what data was captured, what backups were safe, response from law enforcement, the ransom demands, and the quality of the restoration services (if any), so that other casinos can hopefully prevent an identical attack and can better deal with one if it does happen. Trade associations can also pressure regulators to insist on full cybersecurity audits, which can only happen when vendors begin to share details on the internals of their code bases, and to only accept certifications from labs with recent, thorough cybersecurity tests, which would force labs to update their mandates, which in turn would require vendors to comply with much stricter security measures. In addition, trade associations can encourage all parties to invite independent security researchers, software developers and database experts to participate in the review and direction of future system releases and network architectures, with access to common software, tools and protocols without the need to pay huge fees or to deny access to essential components of the systems they are attempting to review, or its documentation. The alternative to proactively, and collaboratively, defending our industry against cyberattacks is simply to experience an increase in the frequency and severity of such attacks. A ransomware attacker’s dream victim is one who pays up and who stays silent. Paying the ransom funds additional developers to find more sophisticated exploits, while the silence ensures that the exact same attack can be duplicated on another victim running the same software. Given the long list of attack victims, it would be hard to justify a cyberattack as an unforeseen or non-preventable risk in an insurance dispute, or for a casino to not be held liable in the case of personal data exposure. In the long run, working together to ward off attacks is going to be cheaper than consistently falling victim and paying the price of ransom, emergency data restoration services, the lost income from closing a casino for weeks, and the potential loss of value from losing the customer database entirely. Andy Goldberg is a database consultant and data scientist dedicated to making casinos smarter and more efficient. He specializes in extracting value from existing databases and casino management systems. His consultancy, Centerfield Nine, is online at www.cfnine.com. DECEMBER 2020 www.ggbmagazine.com
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Fixing a Hole Problem gambling will always be an issue for the gaming industry, but by taking a proactive approach, it can be controllable By Bill Sokolic
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ne percent. That’s the percentage of the adult population classified as problem gamblers. The percentage has not changed much over the years, even as new casinos entered the picture and new forms of gambling surfaced such as sports betting and online gaming. “That tells me the population has adapted behavior to the presence of new gaming opportunities,” says Russell Sanna, executive director of the International Center for Responsible Gaming. “The rate reflects a snapshot in time. Some people get better. New people come into the system.” That kind of stability, while commendable, doesn’t mean this problem isn’t a problem anymore. Problem Gambling Disorder (as it is clinically defined) remains a public health matter without regard to the existence of legalized gambling, Alan Feldman, chairman of the ICRG, says. “The number of people engaged in gambling continues to increase, so the number of people impacted is getting larger,” he says. Healthy gaming is gambling without problems. Problem gaming is excessive gambling. “The idea is to keep one from becoming the other,” says Christine Reilly, senior research director at ICRG. Picking out a problem gambler is not as easy as flagging an inebriated patron, she says. “It’s difficult to identify just by watching them.” Money spent is just one factor in trying to identify problem gamblers. “Time invested is a hallmark, and everything is always related to context,” Reilly says.
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Throwing Money at the Problem Over the years, casinos have taken on more responsibility to help identify and deal with the problem. Operators often need to craft a responsible gaming plan as a requirement for licensure. “In our 2018 survey of 28,000 Americans, 63 percent agreed the industry should do more to help people with gambling problems,” says Keith Whyte, executive director of the National Council on Problem Gambling. There are some commonly accepted general practices that should be in place, the most important being accessibility, Feldman says. “Too often, companies bury their information in hard-to-find locations either on property or on their websites.” Some casino companies do a lot on their own not required by regulations, Reilly says. “We encourage them to customize their programs to reflect the company’s unique brand and identity,” Whyte says. Most of the larger casino companies take the issue seriously, and find innovative ways of incorporating ever more responsible gaming efforts into their operations, Feldman says. But the effectiveness only works when the culture supports the effort. “It starts at the top, but it also must be accepted and internalized throughout a company. “There are still quite a few companies that simply want to check off
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“The pandemic has disrupted most counseling and self-help meetings and further reduced access to care, which may increase the rate and severity of gambling problems.” —Keith Whyte, Executive Director, National Council on Problem Gambling
Online Update their requirements and nothing more. That’s too bad,” he says. “If there were greater understanding that this is all about customer service, it might cause some companies to change their operational and cultural approach to the topic,” Feldman says. Caesars has an ambassador program with staff on the floor to answer questions, Reilly says. MGM Resorts has a program called GameSense that originated in British Columbia, which connects people with a problem to resources, such as Gamblers Anonymous or a counselor. Still, there are limits to what casinos can do, Reilly says. “It’s dependent on people coming in for help.” There’s no evidence any one type of gambling is more of a concern than others. “Both sports betting and online gambling come with unique risk and protective factors,” Whyte says. Gamblers are now able to bet around the clock around the world. Many can make these bets instantly and continuously through their mobile phones. On the plus side, account-based wagering allows for better tracking and identification of risk factors for gambling problems. “I don’t think that sports betting, per se, adds to the problem,” Feldman says. What is interesting is the massive amount of media discussion about sports gambling and gambling language that has suddenly become a part of daily coverage, he says. “This may turn out not be problematic at all; in fact, it may help to normalize sports gambling and lead to far greater understanding of the best practices for consumers. On the other hand, I think it would be best if sportscasters didn’t suggest to their audiences that they ‘bet the house’ on anything,” Feldman says.
“Industry providers, regulators, and gamblers themselves potentially have a much greater opportunity to intervene and prevent harm from occurring online.” —Sally Gainsbury, Associate Professor, University of Sydney
The evidence about online gambling suggests that it has not increased problem gambling as some had feared and, in fact, may well have far fewer customers impacted than other forms of gambling. “Industry providers, regulators, and gamblers themselves potentially have a much greater opportunity to intervene and prevent harm from occurring online,” Associate Professor Sally Gainsbury, of the University of Sydney, says in a paper co-authored by Dr. Robert Heirene. Online gambling is continuously monitored, allowing operators to detect escalating or irregular spending behaviors such as changes in volatility and bet size, she says. Additionally, operators are uniquely placed to contact their customers about consumer protection tools. Such tools allow gamblers to direct their own efforts to minimize problems, Gainsbury says. Customers can temporarily deactivate their accounts using a time-out or “take a break” feature, or permanently close them via selfexclusion. “They can set limits on the amount of money they are able to deposit into their online account or lose. Online activity statements also allow customers to track their expenditures over time.” Operators can also provide customers with access to responsible gambling information pages and helpline contacts. In one study of Australian wagerers, only 24.5 percent and 8.1 percent say they have used limits and time-outs, respectively. In the U.K., the Gambling Commission’s 2019 survey of 6,425 gamblers found rates of 9 percent for limit setting, 3 percent for time-outs, and 2 percent for self-exclusion from specific products. Evidence is inconsistent and the field is limited due to few studies, Gainsbury says. The most support exists for deposit limits. One study with a European casino found that customers who set deposit limits reduced the number of days they place bets, their betting frequency, and the overall amount they gamble. “Among the most intense gamblers, setting limits has been linked to reduced gambling expenditure,” Gainsbury says.
Covid Correction? The Covid-19 pandemic presents an interesting dilemma when it comes to problem gaming. “While there hasn’t yet been a scientific study, logic dictates that Covid-19 has had an impact on problem gambling,” Feldman says. Emotional and economic problems such as stress, anxiety, depression and job loss that are exacerbated by the coronavirus are all known to be associated with higher rates of gambling addiction, Whyte says. This has become reality for many people. “Individuals may use gambling to self-medicate as an escape from the stress of the pandemic or as an attempt to recoup lost income,” Feldman says. “In doing so, they are at a higher risk for experiencing harms from gambling.” DECEMBER 2020 www.ggbmagazine.com
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“While there hasn’t yet been a scientific study, logic dictates that Covid-19 has had an impact on problem gambling.” —Alan Feldman, Chairman, International Center for Responsible Gaming
People with gambling problems already lack accessible, available and affordable problem gambling treatment services in many states. “The pandemic has disrupted most counseling and self-help meetings and further reduced access to care, which may increase the rate and severity of gambling problems,” Whyte says. At the same time, there have been reports of people taking advantage of the break caused by the closure of the nation’s casinos. Some were able to stop gambling during this time and may have been able to make a decision to not gamble in the future. “Others may have been able to use the pause to consider whether treatment might be called for in their circumstances,” Feldman says. Yet another reaction to the virus is the real danger of shrinking budgets for state health departments. That creates a serious danger of further cuts to problem gambling prevention, treatment and research services, Whyte says. “That will likely increase reliance on casino companies to step up to support the safety net.” Players and employees appreciate companies who care about their health and happiness. “There is a great opportunity to strengthen these relationships by embracing responsible gambling messaging and programs during the pandemic,” Whyte says.
Treating It Seriously Treatment of gambling disorders lags behind treatment for problems such as alcoholism. Gamblers Anonymous is not as big or extensive as Alcoholics Anonymous, Reilly says. “There’s no gold standard for treatment,” she says. There’s not much research in the field. There’s a stigma that prevents getting help. With treatment centers few and far between, it’s hard to find treatment. “Insurance is part of the problem. They do not reimburse for care,” Reilly says. Treatment can be self-help, group help, individual therapy or a combination of the three. Studies show cognitive-behavioral therapy and motivational intervention have the best outcomes for people with gambling problems, Whyte says. The basic rule of thumb is that roughly two-thirds of those who complete a treatment program or attend self-help groups for a sustained period of time are able to greatly reduce their gambling-related harm. “They also show significant improvements in family relationships, finances, job performance and even physical health,” he says. Yet many people cling to the fantasy they are just one bet away from winning everything back, which encourages persistence in the face of even catastrophic losses. “This belief also contributes to relapse among gamblers who are trying to quit,” Whyte says. That is why reinforcing responsible gambling messages is so important. Every sign or message provides an opportunity to reach someone right when they have a brief moment of clarity. Exclusion lists are effective for some but not all, Reilly says. Those customers who use self-exclusion report high levels of satisfaction. “The concept is extremely valuable; the challenge is the wide variety of rules and regulations around implementation and use,” Feldman says. Few jurisdictions make the process easy. Each jurisdiction has different 38
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lengths and processes for getting off the list (or no process to do so). “And no jurisdictions share their information, so currently, if a customer has excluded in one state, they may simply travel to another and circumvent the program entirely,” he says. It needs continued innovation and improvement rather than elimination, Feldman says. Most excluders are caught only when they win a jackpot and are required to show ID for tax purposes. “Few who exclude receive referrals to treatment or are able to afford it own their own,” Whyte says. But the NCPG, along with other individuals and organizations, is working to reduce barriers, provide free services to address the root of the problem, and link together hundreds of self-exclusion programs with the goal of creating a more therapeutic, seamless and consumer-centric program, Whyte says. Technology is another promising avenue. Researchers are working with an online algorithm showing a pattern of play. “If excessive, it triggers a message to give them something to think about or cut them off. But we’re not there yet,” Reilly says. Newer technologies include online sources such as podcasts, chats, Gamblers Anonymous Zoom meetings, and telehealth visits with clinicians, Feldman says. “At the same time, technology developers who were working on apps that might be beneficial to those experiencing harm from gambling now have new opportunities as public health officials seek new ways to improve health while social distancing,” he says.
Techno Responses Responsible gambling technology has made enormous leaps, but problem gambling technology is in its infancy, Whyte says. “The vast majority of problem gambling treatment in the U.S. is still delivered face to face by an outpatient counselor or by peers in a self-help group. While some apps that help monitor gambling urges, provide feedback or block access to gambling sites are available, they all tend to be supplemental to a treatment plan, not an integral part of it.” As with any addiction, the first step to recovery is for the individual to acknowledge that a problem exists and that they need help finding a solution. “If the individual isn’t willing to address the situation, it is all but impossible to provide treatment,” Feldman says. The objective for everyone involved should be to remember that any road to treatment is viable and none should be ruled out. “Maybe it’s a talk with a friend, neighbor, co-worker or family member; maybe it’s reading an article or hearing a radio program; maybe it’s seeing a website or listening to a podcast; maybe it’s being motivated by someone in the faith community. Or, maybe it’s a conversation with a casino employee,” says Feldman. “Whatever helps get someone on the road to recovery is worth it.” To read the full transcript of Sally Gainsbury’s report, visit: https://www.iagr.org/ industry-news/how-can-we-improve-consumer-protection-online-gambling.
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Co-Morbidity and Problem Gambling How to address gambling addiction when a player has addictions to alcohol and/or drugs By Jason Shiers t may seem like a real minefield while trying to help someone with gambling addiction who also has an addiction to drugs and alcohol, or maybe a diagnosed mental health condition. Which one is more important? Some of the questions you may have: • Where do we start? • Which addiction is worse? • If we take away one, will the other get worse? • How do we find someone specialized in both areas? • Is someone with more than one in a deeper predicament? • Is it harder to recover with multiple addictions or co-occurring disorders? • Do they need residential treatment?
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All valid questions, when it looks like the actual addiction or mental health condition is the real problem, when they are actually the symptom of the problem. When you look beyond someone’s presenting behaviors to an understanding of untouchable, unbreakable mental health, it does not seem so out of reach. There is an old fable about a reporter who goes to interview a Fortune 100 troubleshooter. When he arrives, his first question is, so how do you deal with big problems? And the answer he gets is surprising. The troubleshooter says, “I don’t deal with big problems.” The reporter, somewhat perplexed, looks at him in shock, and the troubleshooter then says, “If a problem looks really big, I know I’m looking at it wrong, so I step away, until it looks simpler. Then from that place, I can resolve anything.” It’s very easy to get drawn into the media hype of addiction and mental health, and even the world of psychology or psychiatry, where no answers have been found even though billions of dollars have been spent. Dr. Allen Frances, once known as America’s most powerful psychiatrist, said in his book Saving Normal, “Our classification of mental disorders is no more than a collection of fallible and limited constructs that seeks but never finds the truth.” There is always a way, and there are solutions regardless of how bad things may look from your current state of mind.
When Someone Needs Medical Intervention Of course, it is important to address someone’s primary health risk immediately if that is a concern, but when looking at long-term recovery and the process of understanding addiction, it’s worth considering the options and also learning to trust your own instincts about what feels right—not blindly following people’s advice because they have a medical qualification. Co-occurring disorders when including drugs and alcohol can be dangerous to detox from, so it is always best to seek the help of a medical practitioner who can advise how to be detoxed safely from the medication. It is worth knowing that simply removing the substances from the body is only the initial part of the process, not the solution.
Can process addictions be treated without residential care? Yes, absolutely. When medical intervention is not needed, then anyone can get help without going into a residential setting. There has to be a desire to change or at least the willingness to be present to a new understanding. Typically, there are three reasons why people want to change: • The person has had enough, is sick and tired of being sick and tired; • A family member forms an intervention and the person struggling is forced to look deeper; or, • An insight—the person suffering sees beyond what they are doing to new possibilities. No. 2 doesn’t often work well, but can be the catalyst of change on some occasions.
Understanding the Real Problem, Beyond the Symptom On a recent podcast recording “Misunderstanding of Mental Health” I did with Dr. William Pettit Jr., a twice board-certified psychiatrist of almost 50 years, he stated that there is only one cause of mental illness, chronic mental stress, or overthinking. To put it more simply, one solution, seeing beyond our beliefs, about ourselves, about others and the world around us. What he was pointing to was that our experience of life, our reality is created from the inside out. Yet to anyone who is suffering, it looks as if they are victims of the deal life has given them; they experience life from the outside in. This is not a concept or belief, just an explanation that is true for everyone. We are all creating our reality moment to moment with the power of thought, yet we just don’t know it. When addiction and mental illness are seen from this standpoint, it makes perfect sense, people innocently and unknowingly create a scary, sad or difficult experience, then they try to escape from it with the use of processes (gambling) or substances. It’s a simple understanding of how the human operating system works at its very core, often way too simple for people to understand, because of the addiction to complexity.
Finding Help that Understands, Can Explain, and Offer a Solution Addiction is often theorized as a disease or unexplainable mental illness that can only be treated with practices, and has respite periods, but this understanding gives a simple explanation for all suffering. In a research paper written recently by Dr. Thomas Kelley for the European Journal of Psychiatry there was the following statement: “Just as there is an innate health-producing design behind every human system (i.e., gastrointestinal, cardiovascular, excretory) we posit there is also an innate health-generating design behind the agency of thought—that virtually everyone is born thinking in an effortless, free-flowing way and experiencing mental health.” Suffering is what we learn here in our human experience. Unlearning everything we have learned about change is the start of seeing it from a fresh perspective. Your chosen route to getting help for yourself or a loved one should answer all questions about the suffering and offer simple solutions. When one gets to see how the simple human operating system works, things don’t look so scary and overwhelming—recovery is then imminent without the need for practices, techniques or lifetimes of therapy, meetings, or labels. You are free. Jason Shiers is a certified transformative coach and certified psychotherapist at UK Addiction Treatment (UKAT). He has been working with addictions and mental health for over 20 years in evolving ways.
DECEMBER 2020 www.ggbmagazine.com
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EMERGING LEADERS Chasing the Bad Guys Anthony Strangia Deputy Attorney General, New Jersey Division of Gaming Enforcement n an era when switching professions is almost standard operating practice, Anthony Strangia has never wavered from his ambition to be a lawyer. A Middletown native who had just bought a house in Central Jersey, Strangia graduated from the College of New Jersey in 2008 with a B.S. in economics. He added a law degree from Rutgers in 2011 and settled in as an associate attorney. In 2015, Strangia landed his dream position with the New Jersey Division of Gaming Enforcement. “Gaming was a growing industry around the country, and New Jersey had recently legalized internet gaming, and it seemed like an exciting field to work in,” he says. The DGE didn’t disappoint. “Former Deputy Director George Rover hired me to work in the Service Industry Licensing Bureau, where I still work today,” he says. A deputy attorney general, Strangia licenses individuals and entities that do business with Atlantic City casinos and their internet gaming and sportsbook partners. “The great thing is you get to work on so many different cases that your job never gets stale,” he says. Strangia combats illegal internet gaming and sports betting offered by offshore websites that operate without a license. Much of the effort identifies and addresses internet marketing affiliates that promote these websites. “I’ve reviewed tens of thousands of emails in separate cases that have resulted in the disqualification of entities due to their association with illegal internet gaming operations,” he says. “On one of those reviews, I managed to find the proverbial ‘needle in a haystack’ smoking gun email that we were able to confront an individual… that ultimately resulted in his termination.” He also worked on cases with several large companies to enlist their assistance in disrupting illegal gaming operations. “I’ve negotiated with a sovereign tribal entity to shut off a pathway for illegal internet gaming sites being transmitted into the U.S.,” says Strangia, whose favorite activity is spending time with
Lights, Camera, Gaming!
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Marshall Adair Vice President & Executive Producer, Digital/Online, Everi Holdings Inc. his wife Jenny. With the growing popularity of sports wagering, Strangia has had the opportunity to license and work with a number of high-profile individuals that have been entering endorsement deals with sportsbooks or making appearances at casinos. “I even got to take the sworn interview of a billionaire or two. Gaming is full of surprises,” he says. One of those surprises was the coronavirus pandemic, which forced lawyers to work from home. Both the DGE and the Attorney General’s Office made sure the team had all the necessary tools. “I’m very fortunate that I can perform the bulk of my work from my living room. But I miss seeing my co-workers and the hustle and bustle of the office,” says Strangia, a motorcycle enthusiast who drives a 2005 Harley-Davidson Softail Deluxe. And there is no shortage of work, given the growth in New Jersey’s internet gaming industry. Rover was one of Strangia’s key mentors when he joined the DGE. He also gives kudos to Judge Travis L. Francis, who he clerked for, as well as Ralph Lamparello, managing partner at his first law firm. “I’ve benefited greatly from the close mentorship of three of my current co-workers: Director David Rebuck, our current Deputy Director Louis S. Rogacki, and our Assistant Section Chief Michael J Golub,” says Strangia, who plays guitar in his spare time. The casino industry is a fertile ground for lawyers, and Strangia says young legal minds should join. “I’ve practiced other areas of the law, including litigation, and gaming is a growing industry that’s both expanding rapidly and constantly innovating, and you never know what is going to come across your desk next,” Strangia says. —Bill Sokolic
Global Gaming Business DECEMBER 2020
s vice president of digital and interactive at Everi, Marshall Adair is leading the creation of new digital content for an expanding online gaming market. Adair began his career in film, where he was introduced to gamifying concepts through animated film production. In 2009, he transitioned from film to game production and spent the next five years producing video game and social mobile game titles before transitioning to casino gaming. In 2014, Adair joined Everi Holdings as a producer. Initially focused on land-based games, Adair noticed that Everi lacked a robust online game offering. Having produced more than 10 social mobile gaming titles prior to entering the casino gaming industry, Adair felt digital game production could be a niche area for him to broaden Everi’s digital footprint. So in 2017, Adair embarked on his most impactful career challenge: creating Everi’s digital division. In the early days of Everi’s digital division, Adair and his team served as both teachers and creators. “We were teaching the digital infrastructure and how to evaluate the products while also creating them.” With talent requirements and success criteria vastly different from traditional landbased games, Adair relied on thought leaders and his network outside the gaming industry to find best practices, and recommends that other emerging leaders look beyond the industry for inspiration and ways to innovate. Adair views the increasing conversation around iGaming and the changing work environment due to Covid-19 as an opportunity for young leaders. “iGaming is leading to a new group of
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“iGaming is leading to a new group of leaders at land-based operators, and remote work is challenging the traditional leadership model. Emerging leaders can benefit in two ways: recognizing the advantage they have by being comfortable with all things digital; and encouraging non-leaders who may not fit the ‘traditional’ leadership mold to speak up.”
leaders at land-based operators, and remote work is challenging the traditional leadership model. Emerging leaders can benefit in two ways: recognizing the advantage they have by being comfortable with all things digital; and encouraging non-leaders who may not fit the ‘traditional’ leadership mold to speak up.” Looking to the future, Adair is excited to see the types of leaders and organizations that rise to the top, as well as the data generated from this unprecedented time. While ambitiously engaged in his career, Adair enjoys spending time with family, especially introducing his young son to games and modeling. —Chloe Paul is manager, data analytics for The Innovation Group.
Leadership Transformation David Rittvo Vice President of Development, Caesars Entertainment avid Rittvo is a destined industry leader who has been involved in the gaming and hospitality sector for over two decades, including having served as an intern in development at Caesars itself early in his career. Over the years in his professional capacity, Rittvo has led hospitality development projects in diverse markets including the United States, Canada, Russia, Vietnam, the Philippines, Sri Lanka, Macau, Australia, Korea and Taiwan. In addition to his project contributions, Rittvo also helped establish the Emerging Leaders of Gaming program which combined with Global Gaming Business magazine’s 40 Under 40 program in 2012. Rittvo joined the Caesars development team in 2018, where he has been responsible for identifying, assessing and executing transactions, including new development, expansion and partnership projects. He works collaboratively across multiple functional teams to negotiate deals and with external stakeholders to create proposals, business plans and responses to RFPs, as well as prepare and present opportunities to top executives at Caesars. Rittvo also contributes to Caesars’ strategic business development plans by identifying and reporting on business development opportunities. He is now vice president of development for Caesars Entertainment. Rittvo’s role at Caesars has transcended the company’s merger with Eldorado Resorts, where projects that he has overseen continue to
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move forward. Rittvo secured the coveted Danville, Virginia casino license in the spring of 2020 in a competitive bid involving multiple operators. The project is one step closer now, also having won its November 3 city referendum by an overwhelming margin of 69 percent to 31 percent. Immediately prior to joining Caesars, Rittvo was an independent consultant, where he advised clients in real estate, casino operations, and food and beverage projects, working with large-scale casino and hospitality development firms. This expertise was cultivated during Rittvo’s eight-year role with The Innovation Group—a leading hospitality and casino consulting firm—where he served as the vice president of international development. The firm was founded by Rittvo’s father, Steve Rittvo, who exposed David to the industry from a very young age. Upon joining The Innovation Group, Rittvo first established a food and beverage consulting division as a new suite of services at the firm. He then joined the team charged with expanding the company’s presence on an international level, focusing on the Asian region, where he ultimately led projects for high-profile clients in Japan. Before returning to gaming development permanently, Rittvo leveraged his broader hospitality experience in the world of high-end restaurants. He managed a series of chef-driven fine dining restaurants in California in the early 2000s and participated in a unique management training program in London at Planet Hollywood and the 50 St. James Casino. This early experience was a logical path for Rittvo, having earned a bachelor’s degree in hotel, motel and restaurant management at the University of Denver’s Daniels College of Business, and subsequently a master’s degree there in hospitality finance and investment. Today, Rittvo resides in New Orleans, where he was positioned during the Harrah’s New Orleans property expansion project prior to the onset of Covid-19. He and his wife have two young children who take full advantage of Rittvo’s lifetime love of the culinary arts. —Michael Soll is president of The Innovation Group.
DECEMBER 2020 www.ggbmagazine.com
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Loyalty Tech The science of customer loyalty takes on new importance as the industry emerges from the Covid-19 crisis By Dave Bontempo
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hey gleam and sparkle for both operators and gamblers. They resonate deeply. Their appeal is undeniable. Welcome to the new era of gifting, a celebrated promotion link between gaming operators and customers, as operators seek to establish separation from competitors. Gifting provides them accordion-like flexibility to do so. Expand the offers for large, one-time events. Contract them for limited, individual offers. And keep the music playing. Gaming utilizes part of this estimated $22 billion industry to drive customer loyalty, forge relationships and provide well-timed offers. Gifting has a larger-than-normal space in this area. It is often linked with gamification—the concept of elevating the importance of customer service by turning tasks into games, with incentives and points, for employees. Yet the gamification realm is less urgent. Motivated team members are grateful to return from Covid-induced layoffs. Customer service is the biggest built-in guarantee most casinos already have. And although gamification to reward employees internally works, operators prioritize getting customers into their building. The trick is reaching gamblers, nudging them back into the gaming fold and expressing gratitude players remember. Operators use many tools, including casino management systems and face-to-face interaction.
Synkros Solutions Konami occupies a strong place in this sector via Synkros, a casino management system that has supported the industry since 2001 and serves nearly 400 gaming venues worldwide. The inspiration of the product was to build a fully integrated enterprise casino management system enabling any customer, regardless of size, to leverage world-class technology. “When we speak with our customers, they are always looking for new ways to reach targeted audience segments with relevant offers that deliver real 42
Global Gaming Business DECEMBER 2020
results,” says Jay Bertsch, senior vice president and chief commercial officer for Konami. “This requires a stable and flexible solution that allows for a diverse set of individuals and skill sets to operate.” Konami’s Synkros casino management system delivers with tools like its award-winning Synkros Offers Management, which empowers operators to reach, incentivize and reward players uniquely to their demographic and spend. It is a robust player development product that allows casino properties to set up, schedule and deploy a strategic mix of awards to targeted players, with real-time tracking across the Synkros ecosystem. How does the typical player utilize it? “Synkros Offers Management was created to give operators the utmost convenience and control to configure promotions and maximize their results,” Bertsch says. “Seamlessly tapping into analytics from Synkros Advanced Incentives, operators have the data to deploy a strategic mix of awards and offers to targeted player demographics. This gives players more opportunities to connect and engage with property promotions that are most relevant to their carded activity. Offers can be non-contingent or require targeted action, and can be scheduled for specified time periods of activation, selection and expiration.” Bertsch adds that with Synkros Offers Management, players can interact with the property, building loyalty through the use of kiosk machines, SMS, email, direct mail, and at the slot machine device. “Players are given notice of targeted offers specific to their activity and spend, which may or may not require them to earn through an action such as a target wager threshold, visit frequency, etc., as specified by the property,” Bertsch indicates. “They have the option to select and redeem up to five prizes at a time—such as comp vouchers, free play, drawing tickets, tournament entries, bonus points, and bonus comp points.” Bertsch says Synkros Offers Management has the practical convenience to transform awards from blanket promotions to a life cycle of personalized engagement based on direct input from patrons. Because offers are based on
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Grasping a New Trend
“Players are given notice of targeted offers specific to their activity and spend, which may or may not require them to earn through an action such as a target wager threshold, visit frequency, etc., as specified by the property.” —Jay Bertsch, Senior Vice President and Chief Commercial Officer, Konami Gaming
targeted player activity and preferences, operators can optimize awards to motivate key actions and behaviors. Whether the goal is increased visitation, share of wallet, carded play or market share, Offers Management gives operators the tools to drive targeted player behaviors, while rewarding players in a life cycle of customer engagement with offers that the player actually wants, based on preferences. This is a challenging time for operators, who need every edge not only to thrive, but to withstand the Covid-19 downturn. Some properties will rebound faster than others. Synkros will be a key for the operators who have it. “System technologies with the most value are those that allow us to reach and engage players with greater efficiency and effectiveness—with equal importance, targeting those top players given the reduced capacity that properties have today,” Bertsch asserts. “When properties have the tools to reach and connect with players better than their competitors, that’s incredibly powerful in any market environment. It drives increased customer satisfaction, helps fulfill promotional objectives, and creates a differentiated guest experience and brand loyalty.”
Karl Kamb, co-founder of Concept 3 with David Thistle, offers a poignant, yet optimistic look at the new industry landscape. “Covid-19 wiped a lot of companies out, financially and culturally,” he says. “It changed the way many industries, including gaming, think about what’s truly important. For C3, it reinforced that courage and commitment to your ideals is all that matters. “We kept our entire team intact,” he continues. “Continuity not only of messaging but of people is critical for the navigation into the unknown world of new normals. As we crawl out of 2020, at C3 we value our customers, our employees and our families more. We have a renewed spirit of optimism and hope for a great 2021 and beyond.” How will that unfold? Concept 3 is a promotional product distributor and member of the Advertising Specialty Institute. It can supply operators with every possible promotional product from more than 3,000 suppliers. Thistle believes the gifting segment is more important now than ever. Gamblers are in the driver’s seat regarding offers and rewards. Players can evaluate which gaming options offer the best rate of return on entrainment spend, Thistle asserts. A casino’s reinvestment strategy can have a significant and measurable influence on where a player chooses to gamble. “Gifting programs serve as not just an incentive to help guide a player’s decision on which property they ultimately choose to visit,” Thistle says. “Implemented effectively, it can drive an incremental midweek trip they might not normally take. “When compared to free play or gift cards which offer a near dollar-fordollar cost/benefit ratio to a casino operator, gift programs represent the best return on investment for the operator. Concept 3 branded gift programs typically have a 3-to1 value impression. For example, a $20 casino investment into the cost of a gift yields a $60 value impression for the player.” Concept 3 has sourced and sold everything from Porsches to paperweights to casinos across North America. High-value players want to be rewarded above and beyond what the average player can earn. Compare it with airline frequent flyers seeking points they convert into first-class seating. “It is our belief that nothing complements a casino’s brand and reinvestment strategy better than experiential gifting,” Thistle asserts. “What constitutes experiential gifting? When a player receives an invitation from a celebrity to come to their favorite property to redeem a gift, customer engagement is taken to a whole new level.” Experiential promotions are not just fun and memorable for casino patrons, they drive a brand-centric gifting strategy that maximizes rates of redemption while delivering products that have a high perceived value that help keep patrons tethered to the player’s club awaiting the next curated Concept 3 promotion that has yet to be rolled out. “For some, generic gifts may achieve desired results,” says Thistle. “For others, national brands with broad consumer appeal, and a dose of celebrity endorsement sprinkled in, can create a one-of-a-kind experiential gifting strategy that propels customer engagement to new heights.” Thistle adds that Concept 3 owns and operates its own screen printing, embroidery, graphics and sourcing divisions. That allows the company to run lean. It can create and deliver brand-named casino gift solutions that are DECEMBER 2020 www.ggbmagazine.com
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“People ask me, ‘So, you are the gift company?’ I tell them gifts are simply a tool that is used to strengthen the relationship between player and property.” —David Thistle, Co-Founder, Concept 3
not only exclusive to Concept 3, but to the gaming industry as a whole. “Understanding why casino marketing is a critical function of a property’s success is so important,” he indicates. “People ask me, ‘So, you are the gift company?’ I tell them gifts are simply a tool that is used to strengthen the relationship between player and property. It’s not what we at C3 do. We are in the ‘value amplification’ business. We take a casino’s limited and valuable player reinvestment dollars and build lasting impressions of trust and confidence, all critical metrics to the achievement of the property’s financial goals.”
Dealing With Change Paul Gordon, vice president of sales for Rymax, sees the initial sign that the gaming industry looks ready to resume gifting. Base-level precautions like temperature checks, sanitizing stations, face-mask enforcement and social distancing have been accomplished, he says. On to Phase 2. Deploy the merchandise. “Having a tangible product as a gift versus free play or additional discounts delivers trophy value and a residual impression that other gifting suites will not,” he says. “People are growing weary of the situation and long for a return to normalcy. The casino player is a family member of the casino. They have developed friendships with the employees and other players. They celebrate special occasions at the property, and a great deal of their social time is spent there. “They miss the casino. To show appreciation at this time will be a return on that investment that is immeasurable. It doesn’t have to be expensive, but it needs to be a known brand. We have done several online and in-person rewards events, and the appreciation by the player is phenomenal. And the casino employees from the valet to the executives see the impact of increased activity.” Gordon believes Rymax has a multi-layered approach to enticing casino patrons: 1. Understand the needs of the players. The product rewards they are redeeming are more practical products and in-home merchandise than in the luxury category. People are home, and their needs in household appliances and work from home equipment/conveniences have grown in cookware, vacuums, tools, fitness, WFM technology and home office needs. Rymax has seen an increase in products that have functionality for business 44
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and personal use, especially within “smart” home technologies and devices. The player loyalty clubs need to tap into the psyche of the player and the situation that we are in, he indicates. 2. Communication is critical. The top-tier players are coming back, but the casinos need to talk to a wider audience, assuring them of the safety precautions and stressing the “escape and fun aspect” that a casino offers. Gordon believes that even a small gift upon check-in goes a long way, and the very effective “play up” is important now. Gordon also says gifting plays a critical role in the recovery of casinos, not merely the player rewards space. Rymax also targets internal operations, creating employee recognition programs for a landscape that has changed dramatically. “This industry has been hit with massive layoffs, reduced hours and closures,” he says. “Employees are concerned about their job and their families. Employee recognition is vital, and we are doing the following with clients: “Training recognition for new procedures and practices. A points program that can be redeemed for products. “Peer-to-peer recognition so that the ‘team spirit’ can be recognized as employees all pull together. “Front desk recognition for upselling. “The employees are the property ambassadors, and they need to be motivated and recognized to get the casino back. The greatest assets in business are the employees.” Gordon says 2021 will see more brands that want to be in the rewards and recognition space. “As we see the decline of retailers as a result of the pandemic, brands need to move into other arenas,” he asserts. “The loyalty business is a multibillion-dollar industry, and the programs are in everything that a consumer engages in. “Brands can be very specific about what industries and what consumer demographic that they want to target. So, where Rymax traditionally increases its new brand portfolio by 40-50 brands, I see that doubling in 2021. “That is good news for everyone, and will enhance programs and drive business.” Throughout the industry, companies are poised to pounce if they are encouraged by health conditions. They may tiptoe gingerly in this space now, balancing news of the pandemic. But when that news eventually turns good, they will be primed to help gaming operators, and their customers, celebrate.
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CUTTING EDGE by Frank Legato
Safe Chips PRODUCT: Chip Tumbler Sanitation Cabinet MANUFACTURER: Avalon Gaming, Inc.
he Covid-19 pandemic has put a strain on casinos in many ways. Casinos are adapting to the new operating environment by implementing many strategies to keep patrons and employees safe. Casinos are not just following the state-mandated guidelines; many are going beyond those guidelines to ensure a safe and much cleaner environment. Traditionally, casino chips are washed only a couple of times a year, if that. The current response in many casinos is washing the chips in the cage as they are cashed in, and the remaining chips out on the floor in the chip trays are being hand-washed at the end of each day by table games staff, adding a lot of labor to that closing shift. Many of the cleaning solutions being used are not designed for chips but for sterilization in other industries. These cleaners are taking a toll on this expensive casino resource. The frequently washed chips are not faring very well. Many are experiencing color fading and color shifting. One of the more damaging things witnessed is chips with the printed style inserts starting to bubble up and come off of the chip surface. Bottom line: Chips are not designed to be washed with this regularity, especially with cleaning solutions that are not designed to clean and protect the in-
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tegrity of casino chips. There is a solution—UVC light. UVC light it is capable of sterilization of the chip surface. The CDC has stated that UVC at wavelength 240280nm is effective against coronaviruses and bacteria. This range of UVC light is harmful to not only bacteria and viruses, but it will also damage and harm people if exposed to it—so containment of this light is paramount. There are a lot of products being marketed as UVC nowadays. Most are not producing light in the correct range of wavelength to be effective against the Covid-19 virus. Avalon Gaming, Inc. is distributing a product designed in collaboration with Cook Security Group. It is a Chip Tumbler Sanitization Cabinet. This cabinet’s tumbler assembly rotates at a slow proprietary rate to protect the chips from damage and ensure all surfaces of the chips are exposed to a killing dose of UVC light. This can be done 500 chips at a time, with the least amount of labor offered in the industry. For more information, visit avalongaming.com.
Flexible Currency PRODUCT: FUZION MANUFACTURER: JCM Global
CM Global’s FUZION system continues to catch the eye of operators worldwide. Its multiple applications provide operators with business solutions that benefit numerous areas of the casino and provides information that is not available with any other system. One such functionality is FUZION’s multi-currency processing capabilities. For gaming areas where more than one currency is present—such as Asia and border gaming destinations in other parts of the world—FUZION provides the answer to a long-time challenge. FUZION allows operators to seamlessly accept multiple currencies at the EGM, ETG or redemption kiosk. In Asia, FUZION’s multi-currency module allows operators to accept JPY, MOP, CNY, and other currencies while converting their value into the property’s main currency, such as HKD. Working in partnership with the casino’s back-end system, FUZION can calculate real-time currency exchange rates and associated fees to allow for quick and accurate acceptance and processing of all associated currencies. GLI-certified, FUZION is an award-winning breakthrough in total casino peripheral management. FUZION continually monitors every peripheral device in each EGM in real time to help keep the casino running at peak efficiency and guard against suspicious activity. With FUZION, fi-
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nance and security can finally track asset to transaction with available highresolution images of each note or ticket inserted into the EGM. FUZION increases uptime and revenues with its dynamic real-time monitoring of iVIZION and GEN5. This allows FUZION to proactively notify the operator for predictive e-drops and TITO ticket fills, instead of operators acting responsively to an EGM out-of-service notification. Driven by FUZION technology, JCM solutions are involved in every aspect of the casino: audit, count room, entertainment, F&B, marketing, race and sports, security, slot operations, surveillance, table games. For more information, visit jcmglobal.com.
DECEMBER 2020 www.ggbmagazine.com
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NEW GAME REVIEW by Frank Legato
Coin Collector: Aussie 5 Aruze Gaming
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his new game on Aruze’s Muso Triple-27 cabinet includes a unique free-games trigger and a hold-and-re-spin bonus feature. The base game is a five-reel video slot available in payline configurations of four, 25 or 50 lines. In the primary game, mystery symbols appearing on the reels all transform into the same symbol. Also, either of the two progressive jackpots—the Major resetting at $500, the Grand resetting at $5,000 in the penny version—or one of two static bonuses, $10 or $50, can be instantly awarded through a mystery “Jackpot Surprise.” When three or more bonus symbols appear, the “Aussie 5” free-games feature is triggered. The number of free games awarded is determined by a number drawing conducted on each triggering feature symbol. Special scatters can trigger a collect feature in which all prizes displayed on the collected scatters are won, including bonuses and jackpots. Additionally, jackpots can be won randomly during bought games. Six or more scattered coin symbols trigger the “Dream Collector” holdand-re-spin feature. Coin symbols each display a credit amount. Three free spins are awarded, with each coin symbol holding in place for re-spins. Each coin resets the free games to three spins. The bonus continues until no coins appear in a spin, which awards the accumulated number of credit amounts, or all 20 symbol positions fill up with coin symbols, which awards the Grand progressive plus the cumulative credit award.
Manufacturer: Aruze Gaming America Platform: Muso Triple-27 Format: Five-reel video slot; four, 25 or 50 paylines Denomination: .01 to 50.00 Max Bet: 40, 250, 500 Top Award: Progressive; $5,000 to $100,000 reset Hit Frequency: Approximately 50% Theoretical Hold: 3.59%-14.59%
Hot Hot Super Jackpot Scientific Games
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his is a new game series on Scientific Games’ TwinStar 5RM cabinet, in which bonus symbols award win and bet multipliers. The two inaugural games are Double Easy Money (pictured) and Reels O’Dublin. The base game is a five-reel stepper with a multiplier bonus, available in configurations of nine, 20 and 40 paylines. Whenever the Double Easy Money wild symbol lands in a winning combination, the jackpot is doubled. Two or more bonus symbols trigger a hold-and-respin feature. The bonus symbols are held, and the remaining reels re-spin. After the re-spin, all pays are evaluated, and each bonus symbol triggers a multiplier of the total bet. Two, three, four or five bonus symbols award two, five, 20 or 100 times the bet, respectively.
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Global Gaming Business DECEMBER 2020
Three or more scattered bonus symbols trigger 11 free spins in the nine-line version of the game, or 15 free spins in the 20-line or 40-line versions. During the free spins, winning combinations including the Double Easy Money symbol pay eight times the jackpot. Three or more additional bonus symbols award an additional seven free spins (nine-line) or eight free spins (20-line, 40-line). Manufacturer: Scientific Games Platform: TwinStar 5RM Format: Five-reel stepper slot; nine, 20 or 40 paylines Denomination: .01 to 50.00 Max Bet: 360, 900, 1,800 Top Award: 10,000 credits times line bet Hit Frequency: 22.38%, 39.77%, 47.42% Theoretical Hold: 4.06%-11.96%
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Lucky Empress
Ainsworth Game Technology
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his ways-to-win game, available on either Ainsworth’s A640 cabinet or A-Star Curve cabinet, features a unique persistent collect-and-win feature that randomly multiplies wins, and four symbol-driven progressive prizes. The base game is a five-reel, 243-ways-to-win video slot. There are no paylines; wins are registered through adjacent symbols. During the primary game, token symbols are collected and accumulated. Randomly, the multiplier feature will activate to reveal multiplier values for each of the three rows of symbols. When the multiplier feature is activated, values including 2X, 3X, 8X, 10X or 12X appear to the left of the reels. The multiplier that applies to the next pay beginning with that row moves to the first column of the row. All pays on a row with an active multiplier are multiplied when a pay occurs starting with the first symbol in that row. Multipliers apply to ways pays only. After a multiplier is used on a pay, it is removed and any remaining collected token multipliers move down and will apply to the next paid game on the row. The multiplier feature for a row ends when all collected tokens are used on that row. Collected tokens remain when the player cashes out.
There also is a free-games feature. Any five or more scatter symbols trigger eight free games. Any collected tokens during the free games remain after the feature is finished. Five or more scatter symbols on a free spin trigger another eight free games. The four progressives and one bonus prize are triggered with six or more progressive scatter symbols. The Grand progressive and bonus prize are triggered with nine or more scatter symbols on the reels. The Major progressive and bonus are triggered with eight scatter symbols; the Minor progressive and bonus with seven scatters; the Mini progressive and bonus with six scatters. The progressive resets rise with the wager, the top Grand going from a $2,500 reset at minimum bet to $25,000 at max bet. Manufacturer: Ainsworth Game Technology Platform: A640, A-Star Curve Format: Five-reel, 243-ways-to-win video slot Denomination: .01 to 100.00 Max Bet: 680 Top Award: Progressive; $25,000 reset Hit Frequency: Approximately 50% Theoretical Hold: 6%-15%
Regal Riches IGT
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his game on IGT’s premium CrystalCurve cabinet features what is being called the industry’s first “progressive wilds.” The base game is a five-reel, 30-line video slot. A unique mystery event called “Progressive Wilds Free Games” allows players to collect different-colored gem symbols to increase the Minor, Major or Mega wild free games pots. The feature begins with the blue freegames pot, awarding 10 free games including 10 scattered wild symbols. When yellow, purple or green gems land on the fifth reel, they transform into wilds and are collected in the three progressive free game meters at the top of the screen. Two free game symbols on reels one through four, plus any colored free games symbol on reel five, awards the corresponding Wild Free Games meter.
When the guaranteed wilds feature is about to be awarded, a “super anticipation” takes over the screen with graphics and sounds generating excitement. In the free-spin feature, special gem symbols increment the number of wild symbols in Minor, Major and Mega Free Games pots. When triggered, the feature will award the corresponding number of wilds for that pot, and distribute these wilds across 10 free games in an explosion of wild placements that can result in huge wins. A multiplier is also awarded if more than one wild symbol lands in the same position. Manufacturer: IGT Platform: CrystalCurve Format: Five-reel, 30-line video slot Denomination: .01 to .10 Max Bet: 150 Top Award: 39,000 credits Hit Frequency: Approximately 50% Theoretical Hold: 4%-15%
DECEMBER 2020 www.ggbmagazine.com
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FRANKLY SPEAKING by Frank Legato
Malls and Old-Guy Casinos
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Global Gaming Business DECEMBER 2020
giving fashion advice and telling jokes. I must admit it’s a great idea, although after looking at video of the thing, I’d have to disagree with the cheery description. The thing has dog ears hanging off the sides, and it sneaks up beeping and flashing its “cheery digital face,” which, to me, gave it a creepy, alien vibe. I’m thinking if the thing came up on me when I was in a check-in line, my first instinct would be to find something to hit it with. “Welcome, honored guest. Did you hear the one about...” “AAAAGH! Get off!” Moving on to the “Oh-Yeah-I’m-Old” news items, Foxwoods Resort Casino announced it will open up one of its five floors exclusively for guests who are 55 and older. The casino is sectioning off an entire gaming floor at its Rainmaker Casino beginning November 6 to create an over-55 casino with gambling, complimentary cocktails, a DJ “spinning the best of the ’80s every Friday and Saturday night,” and special weekend giveaways. The nightspots will include the Prostate Bar and the Metamucil Lounge. House live entertainment will be the Great Grandfathers. There will be sanitizer stations, EKG stations and living will stations. OK, the irony of these wisecracks coming from someone who easily qualifies for the Rainmaker Casino is not lost on me. In fact, wisecracking aside, I’ll probably play in this casino if I get the chance. It will be like the old Showboat in Atlantic City when they unloaded the buses at 11 in the morning. The ensuing crowd resembled a reunion of Gettysburg veterans. Finally, it made big news when the El Cortez in Downtown Las Vegas changed the carpeting, one article in the Reno Gazette Journal saying they were sadly upending “immeasurable scattered ashes of celebratory cigars and bummed cigarettes. Each was a scar. A scratch on a favorite record. A blemish beneath the feet of millions who walked across this worn pattern of gold leaves and red roses.” Another comment lamented, “Every day a sign or some beautiful, amazing element of Old Vegas disappears.” Come on, the carpet was only 13 years old. Installed in 2007. It’s not like they were going to unearth mobster bones or Sinatra’s dinner jacket. I think the burst of nostalgia could be traced to the fact that the El Cortez carpet installed in 2007 looked pretty much like the one installed in 1947. You know, there really is a band called the Great Grandfathers. They’re all young kids. To me, anyway. Oh well, back to the future. VICT OR RIN ALDO
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s usual, I have culled all the pertinent gaming news of the month, and I hope to come up with clever quips and wisecracks about each of the stories. In this modern age, I no longer have to glean the gaming news by poring over newspapers from a dozen different gaming cities. OK, I never did that either. But in any event, this month’s gaming news offers up a stew of modern-age curiosities, tempered by some nods to the old days. (And my old days are pretty darned old.) First, the newfangled stuff: like casinos in malls. This month, Cordish Companies will open Live! Casino Pittsburgh, located in a former Bon Ton anchor store at the Westmoreland Mall, around 35 miles east of my hometown. I lived on the other side of Pittsburgh, in the hamlet of Library, now known as South Park. (No, not that South Park. My South Park was called South Park before the cartoon.) Consequently, I never went to the Westmoreland Mall, but from all indications, it was the same as South Hills Village, the mall where we all hung out, roamed with imagined intimidation aimed at square adults, and worked in department stores—teenagers in cheap suits and name tags, shoulder-length hair making the getups look ridiculous. There was always an arcade at South Hills Village, but never a casino. Of course, Cordish has run what amounts to a mall casino for years in Maryland, where the Live! Hotel and Casino sits adjacent to the massive Arundel Mills Mall. The combination of gaming with a retail center has been an absolute hit. Still, casinos in Pittsburgh malls? I guess I’m having trouble imagining malls where I used to spend hours playing pinball as having craps tables. Although, admittedly, I would have loved it. The Covid-19 crisis has brought about something even more newfangled than mall casinos—a robot dog greeter. At Wynn Las Vegas, they recently introduced guests to the “Fashion Hound,” billed as the “latest addition to socially distanced, mechanized entertainment at Wynn.” A newspaper article described the dog as “a four-legged robot with a cheerful digital face” that roams around the lobby
Strength in Numbers
More than 180 member companies from 22 countries Nearly $21 billion in direct revenue • 61,700 employees 13 publicly traded companies • ONE POWERFUL VOICE Address worldwide industry regulatory and legislative issues • Discounts on major trade show booth space Promote responsible gaming initiatives • Updates from influential global industry leaders Advertising discounts in leading industry publications • Educational partnerships benefiting students and members Visibility in AGEM’s print advertisements • Exposure for publicly traded companies in the monthly AGEM Index Join AGEM today and work together with the world’s leading gaming suppliers. Marcus Prater, Executive Director +1 702 812 6932 • marcus.prater@agem.org Tracy Cohen, Director of Europe + 44 (0) 7970 833 543 • tracy.cohen@agem-europe.com Connie Jones, Director of Responsible Gaming +1 702 528 4374 • connie.jones@agem.org Design & photo-illustration by Jeff Farrell.com • AGEM and charter ESP member since 2007.
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©2020 Association of Gaming Equipment Manufacturers (AGEM). Membership list current as of November 2020.
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GOODS&SERVICES MCMONIGLE, ORRICK HONORED WITH AGEM AWARDS
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he Association of Gaming Equipment Manufacturers (AGEM) announced that the late Robert (Bob) McMonigle has been selected as the recipient of the 2020 Jens Robert McMonigle Halle Memorial Award Honoring Excellence in Commercial Gaming Professionalism, and David Orrick has been selected as the recipient of the 2020 Peter Mead Memorial Award Honoring Excellence in Gaming Media & David Orrick Communications. AGEM previously announced the creation of this unique annual awards program to acknowledge the lasting impacts on gaming by Halle and Mead, two distinctive industry veterans who died unexpectedly in 2015. Honorees are announced each year at the Global Gaming Expo in Las Vegas, and this year’s awards ceremony for McMonigle and Orrick took place on Wednesday, October 28 during the G2E Virtual Experience. Born in St. Louis, Missouri, in 1944, McMonigle died on March 15, 2020 at 75 following a robust life both personally and professionally. He began his business career with Reader’s Digest magazine in New York City and went on to work in marketing and circulation for Rolling Stone and Outside during a career in magazines spanning 1979-1986. McMonigle then began his legendary career in gaming when he joined International Game Technology, where he spent 17 years and helped lead the company to the top of the list of global slot machine companies. He held many positions at IGT, ultimately executive vice president of corporate relations and North American sales. McMonigle became widely regarded as the most successful slot salesman in gaming history, with IGT routinely receiving 70 percent market share of new casino openings as the riverboat gaming boom in the early 1990s led to explosive gaming expansion in the U.S. and around the world. McMonigle was also a driving force behind the founding of AGEM in 2000, and served as the organization’s first president through 2005 before moving on to work for a variety of other gaming-
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supplier companies. An Englishman born in Dumfries, Scotland, in 1949, Orrick, 71, is a 27-year veteran of the gaming industry and currently serves as director of industry relations for AGEM Gold Member Merkur Gaming, part of Germany’s Gauselmann Group. Orrick started in the gaming industry in 1993 as editor of Euroslot magazine after a 17-year career as a motorsport journalist, editor, author and publisher. He also served as founder, editor and publisher of Casino International magazine before joining Spanish slot machine manufacturer Recreativos Franco, S.A as international communications manager in 1997. Orrick then served as director of communications for Unidesa Gaming and Systems before moving to Novomatic in 2007 as communications & business development director of Austrian Gaming Industries (AGI) GmbH, where he joined Jens Halle to assist AGI’s expansion into new markets, as well as serving as communications director of Novomatic’s U.K. subsidiary Astra Games Limited.
IGT LAUNCHES PEAKSLANT32 CABINET
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nternational Game Technology PLC announced that it successfully launched the PeakSlant32 cabinet, the first slot cabinet in North America to feature three 32-inch displays. Guests of PeakSlant32 Mohegan Sun in Uncabinet casville, Connecticut were the first in the world to sample 20 of the PeakSlant32 cabinets. The latest addition to IGT’s high-performance Peak hardware line, the PeakSlant32 is the company’s first cabinet to feature three seamlessly integrated game-play displays. Content on each of the PeakSlant32’s 32-inch, high-definition displays flows through all three monitors, creating an immersive player experience and a compelling showcase for IGT’s game content. For IGT Advantage casino management system customers, the PeakSlant32 cabinet can be equipped with Bluetooth technology to enable
Global Gaming Business DECEMBER 2020
operators to integrate with IGT’s cashless gaming systems technology, Resort Wallet. The PeakSlant32 cabinet also includes IGT’s most advanced lighting and audio technology and an innovative Dynamic Player Panel that includes a 13.3-inch multi-touch display, an inductive wireless charging pad, and a USB charging port for player convenience. The PeakSlant32 cabinet is backed by a vast library of regionally attuned IGT games. In the U.S., the cabinet launched with player-tested titles Wu Dragon, Wolf Run Gold, Lucky Wealth Cat and the linked Treasure Box product. In markets outside the U.S., IGT will introduce the PeakSlant32 with proven, market-attuned content such as the Uswitch multi-game bundle for operators in Eastern Europe and a range of multi-level progressive games for operators in other jurisdictions around the world. The PeakSlant32 can be deployed in a variety of configurations that accommodate social distancing. The PeakSlant32 cabinet is IGT’s third Peak-series hardware to hit casino floors in 2020. In May, casinos throughout the U.S. welcomed back players with IGT’s PeakBarTop cabinet and in July, a Las Vegas casino became the first venue in the world to feature the PeakSlant49 cabinet.
CLARION ACQUIRES QUARTZ EVENTS
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larion Events, one of the world’s leading independent event organizers and portfolio company of Blackstone, announced it has acquired California-based Quartz Events, the fastest growing producer of invitation-only, executive summits. “The acquisition comes at the perfect time,” said Greg Topalian, Clarion Events North American CEO. “The Quartz Team has figured out how to unlock customer value at an executive level with their guaranteed meetings program, while also making one of the most brilliant transitions I’ve seen to virtual. “Their digital business model fits perfectly with our virtual strategy and will accelerate growth for Clarion both in North America and globally.” This acquisition ensures Clarion, which produces the ICE gaming trade shows in London, North America and Africa, can focus on providing customer value through their guaranteed meetings programs MATCH, and by boosting both online and in-person communities. Clarion Events’ diversified business model has expanded and evolved through high-growth market acquisitions, and varied expansion across industry sectors with a solid emphasis on digital and virtual products. Quartz Events is expected to invigorate Clarion’s expected growth and business development as they are viewed as a leader in the executive summit space, with a successful transition to online, resulting in first-rate-value virtual North American executive summits.
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Oak Grove Racing, Gaming & Hotel
JCM GLOBAL EXPANDS CHURCHILL DOWNS PARTNERSHIP
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CM Global has expanded its long-term partnership with Churchill Downs Incorporated (CDI), which chose JCM as the exclusive gaming transactions solution provider for its newly opened Oak Grove Racing, Gaming & Hotel in Oak Grove, Kentucky. Each of Oak Grove Racing, Gaming & Hotel’s 1,325 historical racing machines (HRM) is equipped with JCM’s award-winning iVIZION bill validator, GEN5 Thermal Printer, and ICB Intelligent Cash Box system. The combination of solutions offers Oak Grove premium security, accountability, and efficiency. “CDI has a great deal of confidence in the products and solutions that JCM brings to our parimutuel gaming entertainment venues,” said Duncan McConnell, senior director of slot strategy and performance for CDI. “The protections and efficiencies they bring to the guest experience are unmatched, and it is a privilege to expand this partnership.” “We have enjoyed a long-term partnership with Churchill Downs, and we are humbled by their ongoing confidence and trust in JCM’s products and support,” said David Kubajak, JCM senior vice president of sales, marketing and operations. “The greatest compliment a customer can give is expanding their business with you, and we are thrilled to expand our partnership with CDI.”
ultra-high-definition 4K graphics display on a 43inch, innovative double curved monitor with a new lighting package. Kascada builds upon the gaming cabinet innovations Scientific Games began with the introduction of the Alpha Pro Wave, the first curved-screen portrait cabinet. That cabinet sent shockwaves through the industry, changed the look of casino floors and transformed the player experience. “Kascada is part of the evolution of the gaming floor,” said Matt Wilson, executive vice president and Matt Wilson Gaming Group chief executive. “Technology in consumer electronics is rapidly evolving. We’re creating truly immersive experiences to match what players have become accustomed to in entertainment experiences off the casino floor. “In developing both cabinets and games, we’re leveraging international teams to tap into and meet consumer expectations around the globe. And, we’ve added top-tier executive talent with operator experience to our commercial team to ensure we keep the perspective of our operator-partners first and foremost.” Renowned game-maker Qin You, whose studio is behind the popular themes 88 Fortunes and
Dancing Drums, has developed new content for Kascada. Building upon her passion for mathematics and history, Qin’steam will unveil Coin Combo with the launch of Kascada.
GALAXY SECURES $4 MILLION LOAN
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alaxy Gaming, a supplier of table games and side-bet bonusing systems, announced that it has received a loan of $4 million from Zions Bancorporation, dba Nevada State Bank, to ease revenue challenges brought on by the Covid-19 pandemic. “Our iGaming business remains robust, but the land-based casino industry in the second and third quarters of this year varied widely by geography,” said Galaxy President and CEO Todd Cravens. “New restrictions have just been announced in the U.K., as well as other domestic markets. These Main Street funds increase our ability to ride out any short-term downturns that might result from regional efforts to fight the pandemic.” The loan is funded by Nevada State Bank and the Main Street Priority Loan Program that was enacted as part of the CARES Act in March 2020.
SCIENTIFIC GAMES UNVEILS KASCADA CABINET
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cientific Games Corporation has launched its new Kascada slot cabinet, which the company says is the next generation of the groundbreaking TwinStar J43 premium cabinet. Kascada, which will initially launch in North America, also is what the company calls its “first truly international cabinet,” available to gaming operators around the world. Built by an awardwinning group of research & development team members located around the world, Kascada offers a modernized version of the J43, boasting an DECEMBER 2020 www.ggbmagazine.com
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PUBLICATION
AN ANNUAL INDUSTRY REPORT
Don’t miss your opportunity to reach tribal gaming executives from all corners of the industry!
GGB Magazine is proud to announce the 2021 edition of TRIBAL GOVERNMENT GAMING: An Annual Industry Report, the most comprehensive publication available covering all Class II & Class III tribal gaming operations. More than just a directory or resource guide, Tribal Government Gaming features editorial coverage of cutting-edge issues such as tribal sovereignty, Indian gaming regulation, economic diversification, nationbuilding, compacts and more.
Tribal Government Gaming is a highly visible publication with a circulation of 20,000, including bonus distribution at NIGA in April 2021, OIGA in July 2021, G2E in October 2021 and other appropriate trade shows and conferences.
Tribal Government Gaming reaches key decisionmakers in the Indian gaming and traditional casino industries, including operators, regulators, manufacturers and vendors.
As an annual publication, Tribal Government Gaming will offer a one-year shelf life providing increased frequency and recall for advertisers. Sponsorship opportunities are available for increased marketing awareness.
Ad Space Deadline: MARCH 18, 2021 I Publication Date: APRIL, 2021 For more information on advertising, please contact
Terri Brady, Director of Sales & Marketing
phone: 702-248-1565 x227 I email: Tbrady@ggbmagazine.com
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PEOPLE NEVADA GAMING CHAIRWOMAN RESIGNS
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andra Douglass Morgan was appointed chairwoman of the Nevada Gaming Control Board two years ago when Steve Sisolak was elected governor. She was the first Sandra Douglass African American to lead the Morgan board and the second woman, following Becky Harris. Last month, she resigned to join Fidelity National Financial, a company controlled by the owner of the Vegas Golden Knights of the National Hockey League, Bill Foley. Morgan’s short reign at the board was noteworthy, however, overseeing the purchases of Caesars Entertainment by Eldorado Resorts and also navigating the Covid-19 crisis, which shut down Nevada casinos for the first time in history. At Fidelity, she will chair a litigation committee of the board, and is expected to lead the charge against a suit filed against Foley and Fidelity when the company bought a life insurance company, FGL Holdings, which Foley also controlled, in a $2.7 billion deal. Morgan’s term runs through 2021. Sisolak praised Morgan’s time on the board. “Her steady hand and unmatched leadership has been critical in guiding Nevada’s gaming industry through one of the most turbulent periods in its history,” Sisolak said. “She will be greatly missed, but her leadership and ability to put together a talented team has left the state in a great position to fill the role with another accomplished individual.”
SAN MANUEL BAND OF MISSION INDIANS NAMES CHIEF OPERATING OFFICER
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he San Manuel Band of Mission Indians announced it has named Rikki Tanenbaum as chief operating officer, reporting to CEO Laurens Vosloo. TanenRikki Tanenbaum baum joined San Manuel in 2018 as chief marketing officer of San Manuel Casino, where she led revenue generation and brand marketing functions. In 2019, she absorbed marketing, public affairs and philanthropy efforts for both the tribal government and San Manuel Casino. “For the past two years, Rikki has played an integral role in marketing and communications for the organization. I am excited to have her as my partner as we align our team to accomplish the priorities that tribal leadership has outlined,” said Vosloo.
In her new role, Tanenbaum will be responsible for overseeing activities related to the planning and implementation of the tribe’s strategic, cultural and economic development objectives. Tanenbaum will assume leadership responsibility for analytics and insights, communications, brand marketing, philanthropy, cultural & natural resources, construction and direct investments.
SG’s LAI GIVEN DIGITAL ROLE
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cientific Games Corporation has named Cathryn Lai, forCathryn Lai merly senior vice president of products, marketing and gaming operations, to head the company’s digital division, SG Digital, as senior vice president and general manager for the U.S. market. Lai has a wealth of experience within the industry across product management, marketing, brand management, operations, and process improvement. She will be heavily involved in SG Digital’s U.S. operations, which have experienced significant growth following several new commercial wins across the division’s iGaming and sports betting product areas. Lai’s appointment represents an evolution of SG Digital to meet the growing demands of an ever-expanding customer base in the U.S. The company anticipates further growth in the coming months, as strong interest in its products from U.S. operators continues to drive ongoing momentum. “Cathryn’s talent and expertise are well known to Scientific Games already, and we’re excited to have her on board with SG Digital,” said Jordan Levin, Group CEO of SG Digital.
SPOON NAMED BETMGM CHIEF OPERATING OFFICER
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etMGM recently announced Ryan Spoon has been named chief operating officer. Spoon comes to BetMGM from ESPN, where he served as senior vice president of social & digital content. Prior to that, he was senior Ryan Spoon vice president of digital product and design, helping to build, operate and grow ESPN.com, the ESPN app, ESPN Fantasy and ESPN Social. Before he joined ESPN, Spoon was a venture capitalist at Polaris Venture Partners. A twotime winner of Sports Business Journal’s Forty Under 40 award, Spoon will be based at BetMGM headquarters in New Jersey. Spoon will report to BetMGM Chief Executive Officer Adam Greenblatt, who stated, “BetMGM has seen early success in establishing itself as a significant player in the sports betting world through relationships with leagues, teams and partners. With
Ryan’s expertise in developing scaled and engaging digital experiences, BetMGM will leverage those relationships in entirely new ways.”
NEW PRESIDENT FOR OKADA MANILA
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kada Manila COO Byron Yip has been promoted to president of the casino hotel. Yip, whose responsibilities have included Byron Yip Okada Manila’s casino, succeeds Takashi Oya, who also served as co-vice chairman of Tiger Resort, Leisure and Entertainment, the Philippine-based company that operates the property as a subsidiary of Japan’s Universal Entertainment Corp. Yip’s “remarkable business leadership has led to the phenomenal growth of Okada Manila and made it a leading integrated resort in terms of gross gaming revenue in the Philippines,” said Hajime Tokuda, who heads the overseas business division of Tokyo-listed Universal.
McKINNON NEW MOHEGAN SUN CFO
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onnecticut’s Mohegan Sun has named Kelly McKinnon chief financial officer. For the past 15 months she has been at the corporate division of Mohegan Gaming Kelly McKinnon & Entertainment (MGE) as director of analytics. She will be in charge of all phases of finance. “Kelly is a driven, hands-on, team-oriented leader,” said Mohegan Sun President and General Manager Jeff Hamilton.
GGB
December 2020 Index of Advertisers
AGEM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .49 American Gaming Systems . . . . . . . . . . . . . . . .2 Casino Player Media . . . . . . . . . . . . . . . . . . . .25 Concept:3 . . . . . . . . . . . . . . . . . . . . . . . . . . . .21 Everi . . . . . . . . . . . . . . . . . . . .Cover Gatefold, 5 Fantini Research . . . . . . . . . . . . . . . . . . . . . . .51 GGB News . . . . . . . . . . . . . . . . . . . . . . . . . . .10 GGB Tribal Government Gaming . . . . . . . . . .52 GGB Digital Edition . . . . . . . . . . . . . . . . . . . .29 Global Payments . . . . . . . . . . . . . . . . . . . . . . . .9 IGT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .55 J Carcamo & Associates . . . . . . . . . . . . . . . . .11 Konami Gaming . . . . . . . . . . . . . . . . . . . . . . .56 Reed Expo . . . . . . . . . . . . . . . . . . . . . . . . . . .17 Sega Sammy Creations USA Inc. . . . . . . . . . . . .7
DECEMBER 2020 www.ggbmagazine.com
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CASINO COMMUNICATIONS
Q
&A
Paul Steelman Founder and President, Steelman Partners
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aul Steelman has been involved as an architect in many of the iconic properties in gaming. From the Mirage to Resorts World Las Vegas to many of the most impressive Asian properties, Steelman’s expertise and gaming knowledge is unmatched in the casino design world. For his latest project, Downtown Las Vegas’ Circa Casino Resort, he teamed with owner Derek Stevens to allow Circa to stand out, yet blend in with the historic Downtown area. But it’s the Stadium Swim— six pools on different levels—and a massive sportsbook that truly mark Circa as something special. Steelman talks about Stevens and his vision and how Steelman and his team worked together to create the project Stevens desired. Steelman spoke with GGB Publisher Roger Gros at his Las Vegas offices in September. To hear a full podcast of this interview, visit GGBMagazine.com.
GGB: Circa is the first new project in Downtown Las Vegas in 40 years. What were some of the differences between Circa and some of the other projects you’ve designed? Paul Steelman: I think number one, we have a
superstar in the making with Derek Stevens. Derek’s vision of this property is unlike anyone else’s. And Circa has a unique spin on it. One of our unique challenges on this design—and Derek’s challenge, of course—was to design, from the ground up, a facility that was compatible with Fremont Street. And Fremont Street is a fantastic place—free entertainment, a worldclass digital show, free entertainers in the circles, and parades from NASCAR, and the football and hockey games, and so forth. It was a very interesting exercise to see how any building would relate to this. We’re very pleased that Derek, in fact, did that. So, it’s the first one in 40 years, and it’s filled with unique technology design, and integrating technology with Fremont Street is a sure winner to me. 54
Global Gaming Business DECEMBER 2020
Derek told us that before they decided upon Steelman, he did a little competition. He chose four or five architects and paid them to do a conceptual design. Why do you think he chose Steelman Partners as the winner?
We competed against some very reputable firms for this project. I think that Derek chose us because we got it. We are firm believers that Las Vegas has a style. And that gambling style is not necessarily based in Rome, or even in Tahiti or whatever. It has a style all its own. I think we’re the architect who actually gets that. And we also are a business-based architect. So, consequently, our success is not necessarily based on the beautiful design. And of course, we want to create new gambling adventures for almost every single thing. Derek wanted a building that looked new and modern, but it looked like it belonged on Fremont Street. And that was really important to Derek. And I think that Derek chose us just because I respect it, and I believe in Las Vegas, and I believe Las Vegas has a style, now influenced by Derek Stevens. Even before the pandemic hit, there was a movement to spread the slot machines out across the floor. And now, of course, they’ve got every other machine shut off, which is not a good look. How is that going to impact the way you design a casino floor in the future?
I think those casinos that do, in fact, have every other slot machine shut off will probably have to consider some serious reconfiguration. There were many studies down over the years: what is the proper length of a slot bank on the basis of “How much do you win at each machine?” And of course, the ends always win more. The slot machines are much more successful at the ends. So, I would suspect that we’re going to have a lot more ends in the casinos. Another area that’s been impacted by the pandemic has been food and beverage. Is this
something that’s impacting your designs as you go forward?
You know, casinos used to be a dark box in a big building. Steve Wynn would say, “I need brilliance and a bright casino.” But over time, we have started to see a lot more integration of outdoor spaces. Now, they weren’t necessarily integrated in accordance with the virus that we currently have. But they have proved useful now, during this virus type of situation. I’d be surprised in the future if we do a lot of indoor restaurants. I think a lot of the restaurants will have that indoor/outdoor activity. Mohegan Gaming has received a license in Greece, for the old airport project there, and you’re the designer of that project. And what a fantastic building it looks like, in just the renderings. Tell us about what you went through to do that, especially since Greece is one of the centers of architecture in all of history.
I was an architect before I was a casino architect. So, obviously, to me, this was a unique opportunity. We’ve worked in Athens for the last 25 years. I think it’s a great place. And fortunately, I was teamed up with a great company, Mohegan Sun, and a great team led by Mario Kontomerkos and Richard Lindsay, just a marvelous group of people that were really inspired by the site, the sea, and the sky. What we wanted to do was take a lot of our experience in Macau, and our experience in Sochi, in Russia. Put them together, and assume that we’ll have some Asian clients who will want to visit this spectacular resort. And there’s a very large market in Russia who already visits Greece. I fully believe that the project in Greece has the capacity to do to Greece, and to Athens, what the Singapore projects did to Singapore, and really increase the tourism industry there.
PROGRESSIVE
WILDS A GUARANTEED STANDOUT
Introducing Regal Riches™, IGT’s newest offering validated through our Proven Performer test bank program. Give your players a unique fusion of favored game mechanics, combining jackpots, free games, and wild symbols for an electrifying game play experience. Presented on our elegant CrystalCurve™ cabinet, this theme is a show-season favorite, noted as a Top 10 2020 release (CDC Gaming Reports-Frank Floor Talk). Contact your account manager to add this to your floor!
©2020 IGT. Except where ownership is otherwise identified, the trademarks used herein are owned by IGT or its affiliates, may not be used without permission, and where indicated with a ®, are registered in the U.S. Patent and Trademark Office. Artwork, descriptions, game play, photographs, videos, and other product details depicted 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.
STACKED
IN YOUR
FAVOR WE’VE GOT YOU with the all-new
.
The industry’s latest core cabinet stacks three 27-inch Ultra High-definition monitors, packed with a powerful mix of proven classics along with bold, brilliant takes on China Shores™ and Dragon’s Law™. With fresh entertainment for your players and long-term, reliable revenue for you—your advantages really stack up. Contact your Konami Sales Representative today. www.gaming.konami.com