Global Gaming Business, July 2018 by Global Gaming Business

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GGB Global Gaming Business Magazine

FREEMaN lEaVES aGa TRiBES & SPORTS BETTiNG CMS SYSTEMS WilliaM Hill’S aSHER

July 2018 • Vol. 17 • No. 7 • $10

The Road Not Taken Aruze blazes a

new trail in programs, cabinets and games

Betting on

BRazil

One of the world’s largest nations eyes integrated resorts

Cooperative Coalition Diverse groups join together to promote responsible gaming Official Publication of the American Gaming Association

Association of Gaming Equipment Manufacturers

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CONTENTS

Vol. 17 • No. 7

july

Global Gaming Business Magazine

COLUMNS

22 COVER STORY The New Aruze

12 AGA American Influence Stacy Papadopoulos

Aruze Gaming America continues to carve out new market share in the U.S. with an increasingly diversified product library, innovations in both slots and electronic table games, and a commitment to customer service.

14 Fantini’s Finance Action Packed Frank Fantini

28 Operations The True Missing Piece Marco Benvenuti

By Frank Legato

52 Table Games Just Say No

FEATURES

Roger Snow

38 Keeping It Fun Gaming industry trade organizations are joining with regulators and government to take the lead in efforts to ensure responsible gambling.

16 Betting On Brazil

By David Waddell

Operators and investors are keeping a close eye on Brazil, where the outcome of gaming legislation could open up an enormous new market.

40 Regulatory Model

By Brendan D. Bussmann

Here’s why the gaming regulatory system in Nevada continues to be the standard for industry regulation around the world. By Jeffrey Silver

44 CMS Evolution Casino management systems continue to evolve as operators discover new ways to turn player data into loyalty, and profits.

By Dave Bontempo

DEPARTMENTS 6

The Agenda

By the Numbers

10 5 Questions 15 AGEM Page 36 Frankly Speaking 48 Emerging Leaders With Boyd Gaming’s Howard Copen, Four Winds Casinos’ Raquel Burton, and UP’s Jennifer Rushton

50 New Game Review 53 Cutting Edge 54 Goods & Services 57 People 58 Casino Communications

30 Sports Betting

With Joe Asher, CEO, William Hill US

in Indian Country Tribal politics, concerns over sovereignty and other issues complicate the prospects of legal sports betting for Native American operators. By Dave Palermo

Global Gaming Business JULY 2018

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THE AGENDA

Going Out on Top Roger Gros, Publisher

hen Geoff Freeman was announced as the new president and CEO of the American Gaming Association back in 2013, I had no idea who he was, but something nonetheless clicked. He had most recently been the COO of the U.S. Travel Association, and my son, Simon Gros, is in that business. He’s an executive with a big online travel company, so I gave him a call to ask him if he knew Freeman. “Know him?” he responded. “He’s a very good friend.” It seems they served on an industry panel or two and Geoff lived fairly close to Simon so they sometimes socialized together. (As an aside, it was Simon who got Geoff interested in playing hockey, since Simon has played since he was a teen.) So I had an “in” with Geoff from the start. He knew very few people in the industry so I offered to introduce him to people who I thought were important players. It started with the top executives at AGEM, and some of the companies that Geoff would be interacting with, so I made those introductions and let Geoff learn what he could from those meetings. One meeting I sat in on was with Bob Faiss, the legendary gaming lawyer responsible for much of the modern Nevada regulations—a man I consider a mentor. Bob was not in good health and passed away less than a year later, but the advice he imparted to Geoff I believed served him well. Bob pointed out that there’s lots of heated competition in gaming and that it sometimes could get personal. He advised Geoff to concentrate on things that we all agree on and let the disagreements take care of themselves. Let’s remember that 2013 was the dawn of legalized iGaming in the U.S. This was—and still is in some quarters—a very controversial topic. Some of the larger gaming companies were dead set against it, and others saw it as a huge opportunity. Geoff wisely took a neutral stance on this issue and avoided a fracture within the organization that he wanted to transform into a wider and more inclusive association. And to achieve that more inclusive group, Freeman had to convince the established powers—the largest casino operators and manu-

Global Gaming Business JULY 2018

facturers—to open the door to related companies to the industry and—gasp—tribal gaming enterprises. Freeman knew that the issues facing gaming didn’t stop at the intersection between tribal and commercial gaming. So he embarked on a strategy to bring in some of the larger tribes that wanted a voice in the overall gaming debate. Whether it was regulations, AML requirements, federal oversight, sports betting or a myriad of other issues, when the gaming industry speaks with one voice, we are that much stronger. And while the AGA has always done research, surveys and outreach, Freeman’s AGA brought a new focus with a proactive approach. The “Get To Know Gaming” (G2KG) campaign bore lots of fruit as the AGA did research and held events in gaming jurisdictions where the impact of the industry had been overlooked. Whether it was Mississippi, Ohio, Oklahoma or any other state where gaming has provided jobs, tax revenues and positive community involvement, G2KG shined a bright light on the good news of casino gaming. During his five-year tenure at the AGA, Freeman accomplished much, but clearly his most impressive achievement was the campaign to overturn the Professional and Amateur Sports Protection Act (PASPA). It was the perfect platform to feature Freeman’s strategy of inclusion, as he brought together many diverse organizations from law enforcement, academia, PACs and others to form powerful coalitions that advanced the message that PASPA was a failed law and should be repealed. When the Supreme Court in May agreed, it not only opened up new opportunities for gaming, but it also will likely shut down many of the illegal websites and neighborhood bookmakers that preyed on our gaming customers—a good outcome for all involved. So where does the AGA go without Geoff Freeman? I have no doubt that Chairman Tim Wilmott and the AGA executive committee will find a worthy candidate who will review Freeman’s accomplishments over the past five years and build upon them. For the AGA is nothing if not resilient.

Vol. 17 • No. 7 • JULY 2018 Roger Gros, Publisher | rgros@ggbmagazine.com twitter: @GlobalGamingBiz Frank Legato, Editor | flegato@ggbmagazine.com twitter: @FranklySpeakn Monica Cooley, Art Director | cooley7@sunflower.com Lauren Byrge, Director, Sales & Marketing LaurenB@GGBmagazine.com Floyd Sembler, Business Development Manager fsembler@ggbmagazine.com Becky Kingman-Gros, Chief Operating Officer bkingros@ggbmagazine.com Lisa Johnson, Communications Advisor lisa@lisajohnsoncommunications.com twitter: @LisaJohnsonPR Columnists Marco Benvenuti Frank Fantini twitter: @FantiniResearch Stacy Papadopoulos | Roger Snow Contributing Editors Dave Bontempo twitter: @bontempomedia Brendan B. Bussmann Dave Palermo twitter: @DavePalermo4 Jeffrey Silver | William Sokolic David Waddell | Bryan Wyman

EDITORIAL ADVISORY BOARD Rino Armeni, President, Armeni Enterprises

•

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

• Julie Brinkerhoff-Jacobs, President, Lifescapes International

• Nicholas Casiello Jr., Shareholder, Fox Rothschild

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

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

• Dean Macomber, President, Macomber International, Inc.

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

• Jim Rafferty, President, Rafferty & Associates

• Thomas Reilly, Vice President Systems Sales, Scientific Games

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

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

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

• Roy Student, President, Applied Management Strategies

• David D. Waddell, Partner Regulatory Management Counselors PC Casino Connection International LLC. 901 American Pacific Drive, Suite 180 • Henderson, Nevada 89014 702-248-1565 • 702-248-1567 (fax) www.ggbmagazine.com The views and opinions expressed by the writers and columnists of GLOBAL GAMING BUSINESS are not necessarily the views of the publisher or editor. Copyright 2018 Global Gaming Business LLC. Henderson, Nevada 89014 GLOBAL GAMING BUSINESS is published monthly by Casino Connection International, LLC. Printed in Nevada, USA. Postmaster: Send Change of Address forms to: 901 American Pacific Dr, Suite 180, Henderson, NV 89014 Official Publication

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BY THE

NUMBERS

Survey Says…

Birth of a NatioN N

new survey conducted by Morning Consult asked more than 2,200 respondents how they felt about sports betting. The survey was conducted a few days after the May 14 Supreme Court decision. • The first point made by the survey was the amount of legal vs. illegal wagers on the 2018 Super Bowl, and the graphic is staggering.

evada was the first state to legalize sports betting. It was a long and winding road, and the infographic provided by UNLV’s Center for Gaming Research follows the trail.

• What sport do bettors most want to wager on? Not surprisingly, it’s the NFL. With almost 30 percent saying they would bet on the Super Bowl if allowed, 24 percent would participate in betting on NFL games, by far the largest interest group of all the sports.

• And who will the sports bettors be? The Morning Consult survey says they’ll be younger and less affluent than your typical gambler. To view the full survey, visit www.morningconsult.com/2018/06/07/legal-sportsgamblings-future-younger-less-wealthy-bettors.

Global Gaming Business JULY 2018

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NUTSHELL

“They

5Questions

Mike Dreitzer President, Gaming Arts

ingo and keno have always been significant players in the gaming industry. While simple, the two Bandgames are linked by numbers and the enthusiasm of their players. But they’ve changed over the years, technology has now elevated them to new levels. Mike Dreitzer, who stepped down as president of Ainsworth North America late last year, was named president of Gaming Arts in February and hit the ground running with his new company. With licenses in more than 70 jurisdictions, Gaming Arts is a major player in the bingo and keno sector. Dreitzer met with GGB Publisher Roger Gros at the Gaming Arts offices in Las Vegas in April. To hear a full podcast of this interview, visit GGBMagazine.com.

1 2 3 4 5

GGB: You’ve been involved with some very progressive companies in the industry. Why did you choose to come to work for Gaming Arts? Dreitzer: I had been having discussions with David Colvin, the owner of the company, since late last year.

David used to own the Sienna casino in Reno, so he’s got a good gaming background, and we realized we had some very complementary skill sets. He’s very creative and is the mastermind behind the product. He’s very involved in the design of the games both from the mathematical side and the graphics side. I’ve been more focused on operations, sales and marketing in my experience.

Said It”

“It starts with me, right at the top. These are things I’m leading on. As CEO, I can tell you there is no association with Steve Wynn. There is no business association with Steve Wynn. I’m my own man.” —Matt Maddox, new Wynn chief executive officer, remarking on the company’s new direction minus its founder, Steve Wynn

CALENDAR July 13-15: National Council of Legislators from Gaming States (NCLGS) Summer Meeting, Cleveland Marriott Downtown at Key Center, Cleveland, Ohio. Produced by NCLGS. For more information, visit NCLGS.org. August 14-16: Australasian Gaming Expo, ICC Sydney Darling Harbour, NSW, Australia. Produced by the Gaming Technologies Association. For more information, visit austgamingexpo.com. September 5-6: Casino eSports Conference 2018, Luxor, Las Vegas. Produced by Fox Marketing. For more information, visit CasinoeSportsConf.com.

Tell us what it was about the products that attracted you.

For a very small company, we have a very diverse set of products. We are in the traditional keno space with a keno system called Optima. We are the leading provider of keno in the world, and there is a lot of growth internationally. We have developed a keno kiosk where a player can enter up to 999 games. You can connect that to an app on your phone to track your winnings. How about your bingo products?

In the bingo space, we have “Super Games,” which are side-bet or overlay games that can go over traditional bingo systems. We can coordinate and interface with any bingo system in the world. Most notably, we have Bingo Millions. This is a product where if you cover a certain amount of numbers, you can win up to $1 million depending upon the pay table. It’s an interesting product for a few reasons. First, the odds of winning the top prize are one in 1.5 million. Compared to the lottery or even top-award slot machines, it’s quite a good set of odds. In addition to the odds, Gaming Arts insures the jackpot. So if it hits on an operator’s floor, Gaming Arts pays it. You would think it wouldn’t hit that much with those odds, but it hit just before I started in January at a property in Phoenix, so we paid it. Operators can advertise a big jackpot and have zero risk. How did you get up to speed on bingo and keno?

September 5-7: International Masters of Gaming Law (IMGL) Autumn 2018 Conference, Hotel Boscolo, Prague, Czech Republic. Produced by IMGL. For more information, visit IMGL.org. September 11-13: SAGSE Latin America, Costa Salguero Convention Center, Buenos Aires, Argentina. Produced by Monografie. For more information, visit monografie.com/SAGSElatam. September 17-20: International Association of Gaming Regulators (IAGR) Annual Conference 2018, Hotel Scandic Copenhagen, Copenhagen, Denmark. Produced by IAGR. For more information, visit IAGR.org. September 25-26: Central and Eastern European Gaming Conference (CEEGC), Ritz-Carlton Budapest, Hungary. Produced by EEGE Events. For more information, visit ceegc.eu.

As you know, I had little experience in this space, just the traditional slot machines in the pure casino environment. So learning about bingo has been amazing. You’d be amazed at the number of bingo players and the amount of money they play. In fact, bingo globally is more popular than slot machines. And many of the tribal and commercial casinos have large bingo rooms, so I feel very comfortable there.

October 8-11: Global Gaming Expo (G2E), Sands Expo & Convention Center, Las Vegas, Nevada. Produced by Reed Exhibitions and the American Gaming Association. For more information, visit GlobalGamingExpo.com.

So, Gaming Arts can offer both paper games and EGMs? Are the games Class II games?

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

Yes, we can put our Super Games across any system. It’s just a matter of how the bingo operator wants to spice up its bingo offerings. We have very diverse pay tables and great opportunities for all operators. It’s interesting, but when we’re talking about bingo in this context, it’s not Class II. In many casinos around the country and also in charity games in a true bingo hall, we’re talking about “session” bingo. Our Super Bingo and Ultimate Bingo EGMs are also not Class II. They’re Class III bingo—standalone RNG gaming devices, which happen to be bingo games.

Global Gaming Business JULY 2018

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

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AMERICAN GAMING ASSOCIATION

American Influence The AGA spent May spreading the good word about gaming internationally

A THE

REAL DEAL D

s the global gaming industry continues to evolve, the American Gaming Association is diligently pursuing all opportunities to share the U.S. industry’s success story abroad. This May, we had the distinct honor of joining members of the ever-growing casino gaming industry in Asia as AGA participated in the Japan Gaming Conference (JGC) and hosted our largest Global Gaming Expo (G2E) Asia event to date. While in Macau, we witnessed firsthand the incredible growth and success of G2E Asia 2018. This year’s event hosted an unprecedented 37,000 square meters of exhibition space, up 27 percent from 2017, and showcased more than 220 exhibitors with cutting-edge products, services and technologies. We’re proud to report that G2E Asia 2018 was not only the largest in size but also in attendance, with more than 16,000 people joining us from 89 countries and regions. As G2E Asia enters its second decade, the expo continues to demonstrate the industry’s ever-growing diversity with a range of premier gaming and integrated resort offerings, and we look forward to seeing great strides in this area. GGB readers likely don’t need to be reminded of the opportunity at hand as Japan considers how to roll out a now-legal casino gaming industry. As the country finalized the rules for developing and operating integrated resorts (IRs), it is more important than ever that we share our learnings and experiences as the world’s third-largest economy considers

By Stacy Papadopoulos

its path forward. Being at the JGC offered us the chance to not only share our story from here in the U.S., but also to highlight the successful statistics and practices that we’ve seen firsthand in Singapore. It’s in all of our interests for the industry to continue to grow and evolve, while,

in all of our interests for “theIt’sindustry to continue to grow

IIn n ne nearly a rly 20 20 y years, ea rs, we’ve we’ve grown g row n tto ob become ecome the t he preeminent preem i nen nt ccasino a s i no m marketing a rket i ng aagency gency and a nd ccontinue ont i nue tto o build bu i ld some some of of the t he biggest b ig gest aand nd b best es t b brands ra nds in in tthe he iindustry. ndust r y. See See for fo for yourself. you rsel f. Experience E x per ience matters. mat t ers.

Ca l l u Call uss ttoday oday at at 800-475-2000 800-475-20000 rrpmadv.com pmadvv.com 12

Global Gaming Business JULY 2018

and evolve, while, above all, providing a safe environment for consumers.

”

above all, providing a safe environment for consumers. As we conclude a successful spring of international advocacy, we’re encouraged by the burgeoning gaming market in Asia, and we look forward to continuing AGA’s engagement with our industry partners abroad. Stacy Shibao Papadopoulos is general counsel and senior vice president of industry services at the American Gaming Association. In this role, she oversees AGA’s legal operations, member engagement, strategic partnerships and shared services, including finance, human resources and technology.

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FANTINI’S FINANCE

Action Packed The legalization of sports betting spurred developments in wagering, acquisitions and opportunities By Frank Fantini

t has been only a few weeks since the U.S. Supreme Court struck down the federal sports betting ban, but so much has happened it seems much longer. The ink on the decision was barely dry when companies and jurisdictions already began taking advantage of their new freedom: • Churchill Downs signed a deal with SB Tech to provide online sports betting in New Jersey. • Stockholm-listed Kambi signed on to provide its sports betting platform to Rush Street Gaming. • Paddy Power Betfair agreed to buy daily fantasy sports operator FanDuel, getting its 7 million sports-oriented customers. • William Hill signed to operate the sports book at Ocean Resort, the former Revel casino in Atlantic City, due to open on June 28. • Delaware became the first state to open full sports betting since the court ruling. • New Jersey, as of this writing, had enacted legislation and was just the governor’s signature away from launching. And these were just the major actions. Numerous other companies made moves to position themselves to join the party or made announcements of their intentions to do so. So, aside from the excitement, how much potential is there for sports betting and what does it mean to investors? A lot depends on whether sports betting can be allowed online under the 1961 Wire Act, and whether interstate pools will be allowed. A lot also depends on how many states legalize sports betting and the tax rates they impose. On the conservative side, states that allow just sports betting in casinos might find there is more excitement for players than profit for casinos. Consider Delaware. Sports books are limited to the state’s three casinos. Assuming they generate the same 2.6 percent of all gaming rev-

enue as in Nevada, a company like Dover Downs would generate sports betting revenues of under $4 million, compared to its overall gaming revenues of $152 million last year. Then the state and horsemen take their cuts, leaving the company with under $2 million. That is fresh revenue, and the casino hopes to attract players who will spend money elsewhere in the property too, but it isn’t a gamechanger. Then there are taxes. If Pennsylvania follows through on a tax rate of 34 percent (plus 2 percent for host fees), it might find few takers for operating a business with revenue margins around 5 percent. Further, the tax rate could put licensed sports books at such a disadvantage to illegal books that the black-market operators just cruise along as before. State lotteries also want to participate. Missouri Lottery Director May Scheve Reardon points out that there are only 13 casinos in her state to take sports bets but 5,000 lottery agents,

“

tion from the federal government. But even if online sports betting is allowed, the potential is limited in a nation of 50 states, many of which are too small in population to support a robust industry and a number of which will not legalize sports betting. Then there is the question for investors of picking the winners. Suppliers such as Scientific Games and IGT will support sports betting operations. Small European companies such as GAN and Kambi can find even a balkanized American market to be a needle mover. William Hill clearly has the model of operating sports books for casinos. Big regional casino operators like Caesars Entertainment, Penn National, Boyd Gaming and Eldorado Resorts will be able to offer sports betting in numerous jurisdictions. Churchill Downs and Paddy Power Betfair have account wagering operations that present a ready pool of players, especially if sports betting is allowed online. And there are others. In addition, numerous privately owned companies will influence the market, such as odds-setter DonBest and sports information provider Sportradar. In other words, there are so many unanswered questions that it is almost impossible to identify clear winners, or at least winners where additional revenues will be sufficient to move stock prices appreciably. In this environment, a basket approach may be best for investors: buy a couple of prominent stocks in each segment of the industry; pick a couple platform and technology companies, pick a couple of regional operators, pick a couple experienced sports betting providers. The theory is that there will be winners and losers in the basket, but in a growing industry, the impact of the winners will outweigh losses from the losers.

If sports betting is allowed online, potential revenues can be tremendous. But that depends on the interpretation of the Wire Act, which prohibits sports betting over telephone lines, and by extension, the internet.

Global Gaming Business JULY 2018

and she cites a study that the state could generate many times more revenue by allowing the lottery to participate in sports betting. On the other side, if sports betting is allowed online, potential revenues can be tremendous. But that depends on the interpretation of the Wire Act, which prohibits sports betting over telephone lines, and by extension, the internet. Clearly, the Wire Act prevents interstate sports betting, but what about intrastate? Some legal scholars point out that the Wire Act makes no distinction and simply bars betting over phone lines. But Nevada has allowed digital sports betting within its borders without opposi-

”

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

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AGEMupdate AGEM MEMBER PROFILE

GamblingCompliance is the leading provider of

independent legal, regulatory and business intelligence to the global gambling industry. Trusted by leading names all over the world, GamblingCompliance powers more informed understanding and effective decision-making. The independent analysis of legal and policy developments by GamblingCompliance provides the comprehensive coverage gaming industry professionals need to understand what regulatory changes mean for business opportunities. Based in London, Washington, D.C. and Taipei, GamblingComplianceâ&#x20AC;&#x2122;s team of in-house analysts and journalists boasts an unrivalled network of contacts among policymakers, lobbyists and legal experts, as well as a wealth of experience to analyze regulatory change as it affects all sectors of the gambling industry. This year GamblingCompliance will be introducing U.S. Sports Betting Tracker. Following the Supreme Courtâ&#x20AC;&#x2122;s landmark ruling, GamblingComplianceâ&#x20AC;&#x2122;s forecasts suggest that the U.S. sports betting market will likely expand to more than 20 states and generate an estimated $3 billion-$5.3 billion in annual revenue by 2023. To find out what you should be watching forâ&#x20AC;&#x201D;an analysis of the critical legal, lobbying and regulatory factors that will determine how the U.S. market takes shapeâ&#x20AC;&#x201D;GamblingCompliance has launched a new monthly U.S. Sports Betting Tracker, which gives you the latest regulatory intelligence and analysis on this fastevolving and expanding market. In April, GamblingCompliance hosted the second annual Global Regulatory Awards, bringing together more than 300 individuals from across the globe to recognize and celebrate the individuals and teams responsible for putting gambling operators at the forefront of regulatory and compliance excellence. View the 2018 winners and find out how you can get involved and support the 2019 awards at GamblingComplianceAwards.com Meet GamblingCompliance at the NCLGS Summer Meeting in Cleveland in July and the Global Gaming Expo (G2E) in Las Vegas in October. Find out more at gamblingcompliance.com.

AGEM Board of Directors Actions â&#x20AC;&#x201C; June 2018 â&#x20AC;˘ The Arkansas Attorney General recently approved wording for consideration on the November ballot regarding changes to state gaming law. There is now a scramble to collect 85,000 signatures by July 6 to endorse the proposal that would potentially allow two new casinos to be granted licenses and two existing racinos to allow traditional slots. This could see a boost of 8,000-10,000 new machines in the state. AGEM is watching this initiative closely and has agreed to pledge $10,000 in support to gain the appropriate number of signatures. â&#x20AC;˘ AGEM Mexico Committee Chairman Carlos Carrion recently met with the new director of SEGOB, Eduardo Cayetano Cacho Silva. They had very positive discussions regarding AGEMâ&#x20AC;&#x2122;s past collaborations with SEGOB and the directorâ&#x20AC;&#x2122;s wishes to continue to grow the relationship. It was agreed that AGEMâ&#x20AC;&#x2122;s Responsible Gaming Code will be translated from English and presented in Spanish, so it can be used to assist Mexicoâ&#x20AC;&#x2122;s operators and for when new regulations are drawn up for the market. â&#x20AC;˘ The AGEM-AGA Golf Classic Presented by JCM Global recently took place at the renowned Shadow Creek course. This was the 20th anniversary of the event, and was a resounding success that resulted in the largest contribution to date for the National Center for Responsible Gaming (NCRG). A phenomenal $228,000 was raised, taking donations for this event to more than $2 million since its inception. More than 140 players took part, with the overall competition won by IGT. â&#x20AC;˘ Following the recent news that American Gaming Association CEO Geoff Freeman will be resigning his post on August 1, AGEM Executive Director Marcus Prater spoke at the June meeting to acknowledge and thank Freeman for his work over the past five years. The AGA has become bigger and stronger under his leadership, and he leaves behind a great legacy and a large staff that AGEM continues to work very closely with. â&#x20AC;˘ AGEM welcomed four new members in June, bringing the total membership to 170 companies. Weike Gaming Technology, approved as a Bronze member, is based in Singapore and supplies slot machines, electronic table games, gaming management systems and jackpot links across Asia. Also joining at the Bronze level wasofAce Systems, based in Monterrey, Mexico, which supplies software for casinoMay manageAssociation Gaming Equipment Manufacturers 2018 ment systems. New Associate members include BDO, the worldâ&#x20AC;&#x2122;s fifth largest accountancy firm, and Positivedirect contributors 2018 AGEM Index AGEMinIndex continued to grow positively in thermal Nanoptix,he based Dieppe, Canada, which provides printerstotothe the May gaming industry. included the following: encouraging trends. The composite index finished the month at 554.05 points, a gain of Aristocrat Leisure Limited (ASX: ALL) contributed 22.72 points or 4.28 percent, compared to April 2018. 24.94 points due to a 12.01 percent increase in AGEM Index reported a year-over-year increase for stock price to AU$30.04. â&#x20AC;˘The Nominations for the Jens Halle and Peter Mead Memorial Awards are open. Nominees should have a the 32nd consecutive month and has climbed 163.87 points, or 42.00 since May Scientific Games reported minimum of 10percent, years working in2017. the industry and possess the qualities thatCorporation both men (SGMS) displayed. All an 11.26 percent increase in stock price to $59.30, nominations must be received July andgaming the winners contributing will be announced during G2E Las Vegas in During the latest period, seven ofby the 13 15 global 8.34 points. equipment manufacturers reported month-to-month October. Please visit www.AGEM.org for more information. increases in stock price. Six manufacturers reported Selected negative contributors included the following: decreases in stock price during the month.

FORTHCOMING EVENTS

AGEMindex

With its stock price falling 11.78 percent to $24.94, The April performance of the AGEM Index paralleled the International Game Technology PLC (IGT) contributed three major stock market indexes. The S&P 500 reported negative 8.25 The AGEM Index continued growpercent positively in May 2018, building upon lastpoints. monthâ&#x20AC;&#x2122;s encouraging trends. The a month-to-month increase ofto2.16 to 2,705.27. The Dow index Jonesfinished Industrial Average increased 1.05 composite the month at 554.05 points, a gain of 22.72 points or(TYO: 4.28 percent, compared to April Konami Corp. 9766) reported a 5.02 percent percent to 24,415.84, while the NASDAQ increased 5.32 2018. The AGEM Index reported a year-over-year increase for the 32nd consecutive month and has climbed decrease in stock price to ÂĽ5,110, contributing percent during the period to 7,442.12. negativeseven 3.99of points 163.87 points, or 42 percent, since May 2017. During the latest period, the 13 global gaming equip-

ment manufacturers reported month-to-month increases in stock price. Six manufacturers reported decreases in stock price during the month.

AGEM

Agilysys

Ainsworth Game Technology Aristocrat Leisure Limited Astro Corp. Crane Co. Everi Holdings Inc. Galaxy Gaming Inc. Gaming Partners International International Game Technology PLC

Exchange: Symbol (Currency)

Stock Price At Month End May-18 Apr-18 May-17

Nasdaq: AGYS (US$)

14.22

11.78

9.91

ASX: AGI (AU$)

1.16

1.91

2.16

ASX: ALL (AU$)

30.04

26.82

21.80

Taiwan: 3064 (NT$)

21.80

20.20

19.20

NYSE: CR (US$)

83.11

83.64

77.23

NYSE: EVRI (US$)

7.49

6.41

6.69

OTCMKTS: GLXZ (US$)

1.33

1.11

0.73

Nasdaq: GPIC (US$)

8.84

8.88

10.35

NYSE: IGT (US$)

24.94

28.27

17.38

Konami Corp.

TYO: 9766 (ÂĽ)

5,110

5,380

5,440

NYSE: AGS (US$)

25.32

22.61

Nasdaq: SGMS (US$)

59.30

53.30

23.20

Nasdaq: TACT (US$)

10.85

12.20

8.55

PlayAGS Inc.

Scientific Games Corporation Transact Technologies

Percent Change Index Prior Period Prior Year Contribution 20.71 43.49 0.95 (39.27) (46.30) (1.57) 12.01 37.80 24.94 7.92 13.54 0.05 7.61 (0.43) (0.63) 16.85 11.96 1.20 19.82 82.19 0.14 (0.45) (14.59) (0.00) 43.52 (8.25) (11.78) (5.02) (6.07) (3.99) 11.99 1.47 155.60 8.34 11.26 26.90 (0.12) (11.07) Change in Index Value

22.72

AGEM Index Value: April 2018

531.33

AGEM Index Value: May 2018

554.05

1. There is no Prior Year data for PlayAGS Inc. because the stock began trading in January 2018.

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

JULY 2018 www.ggbmagazine.com

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Sleeping

Giant

Brazil is one of the few strong opportunities for IR development By Brendan D. Bussmann

hile most of the gaming world is focused on Japan as the next emerging market, a battle continues south of the Equator to legalize gaming in Brazil. This untapped market could serve as the cornerstone for gaming development in the region if it were to become a fully regulated market. With the worldâ&#x20AC;&#x2122;s fifth largest population, Brazil serves as one of the few strong opportunities left as an emerging jurisdiction for integrated resorts. Brazil is one of the few large countries that does not have legalized gaming, and local stakeholders have come to believe that it puts them at a disadvantage to compete as a tourism destination at the international level. Like many potential gaming jurisdictions, local politicians see the case for 16

Global Gaming Business JULY 2018

integrated resorts as a way to generate tourism and economic development. One of the best cases of this that is still used in jurisdictions like Japan and Brazil is the growth that Singapore saw with the addition of Marina Bay Sands and Resorts World Sentosa in 2010. Brazil, which is coming off of hosting the Olympics two years ago, looks to continue to build its tourism with IRs serving as a base to attract individuals to the region. Several major international gaming operators, including Caesars Entertainment, MGM Resorts International and Las Vegas Sands, have shown interest in the market. The Las Vegas Convention and Visitors Authority continues to focus on Brazil to grow international visits to

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Along with bingo, a lotterystyle animal game, jogo de bicho, is popular in Brazil

Bingo halls dot many Brazilian cities, but only the paper game is permitted, not bingo machines

The only legal forms of gaming at the national level are the national lottery, which has been in existence for over 50 years, and sports betting that is legal under the regulation of the Caixa Economica Federal. However, the lottery competes directly with Jogo do Bicho, an illegal lottery-type game reputed to be operated by local mobsters and cartels, and bookmakers must compete with offshore operations that are completely unregulated. Las Vegas due to its wealthy target visitors who like to gamble, shop, eat and party. Currently, Brazil is the seventh largest source of international visitors to Las Vegas, with more than 150,000 Brazilians visiting each year. Chilean airline LATAM recently began nonstop flights between Las Vegas and Brazil. Within the last few months, stakeholders from all sides involved in Brazil have continued to gather after misses in passing IR legislation earlier this year. Gatherings have included the Brazilian Gaming Congress in April that also hosted a separate seminar on gaming legislation for Brazilian legislators. Gaming in Brazil also was one of the key topics at the most recent Juegos Miami conference that concluded at the beginning of June. Gaming and IR development will continue to be a discussion point in the country, as there is a recognized need for additional tax revenue and economic development.

The Existing Market Gambling has been illegal in Brazil since the 1940s. It was initially prohibited nationally in 1941, when the Criminal Convention Act banned all games of chance. This was further cemented through Decree-Law No. 9.125 of April 30, 1946, which brought forward the closure of casinos that existed in Rio de Janeiro, Sao Paulo and Minas Gerais. However, despite gaming being illegal in the country, Brazilâ&#x20AC;&#x2122;s gaming market is significant today. It is viewed that the online market alone could generate up to USD$1.65 billion. The only legal forms of gaming at the national level are the national lottery, which has been in existence for over 50 years, and sports betting that is legal under the regulation of the Caixa Economica Federal. However, the lottery competes directly with Jogo do Bicho, an illegal lottery-type game reputed to be operated by local mobsters and cartels, JULY 2018 www.ggbmagazine.com

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Full Legalization

Senator Ciro Nogueira is sponsoring the bill that would legalize several forms of gaming, including casinos, in Brazil to eliminate the gray market that currently exists

and bookmakers must compete with offshore operations that are completely unregulated. In addition to lotteries, Brazilians play hundreds of thousands of bingo-style slot machines spread throughout the country at illegal bingo parlors. These parlors and games are widespread, although they are technically illegal, and those that operate them are pushing for them to be legalized and taxed. In addition to these widespread machines, online sports wagering and casino gaming are widely available through online, offshore-based operators from the Caribbean to Gibraltar. Although not legal, local authorities do not do anything to prevent these online operators from attracting locals. Based on information reported by Games Brazil magazine, it is estimated that the Brazil gaming market generates roughly $14.5 billion per year through the lotteries, sports betting, bingos and other forms.

A Tale of Two Proposals Two proposals are leading the way for legalization of gaming in Brazil. One would legalize the gray-market machines as well as online gaming, and it would setup a framework for a limited number of integrated resorts. This approach would yield a significant revenue stream for the state and generate tens of thousands of jobs. The other would focus on a narrow form of gaming in integrated resorts with a limited number of locations, thus keeping the rest of the gaming market that is operating illegally today likely continuing to operate in the same manner. Regardless of the approach ultimately chosen, international operators need to know that they have a legal framework in place that will allow them to develop large-scale facilities in a well-regulated and fair environment. This includes a reasonable tax rate with strict regulations, and a rational licensing fee.

One consideration that has been widely discussed is to legalize nearly all forms of gaming and then to take a systematic approach to reform the existing illegal market to bring it under a regulatory framework, while also allowing a formal RFP process to develop integrated resorts. By regulating all forms of gaming, this creates the biggest economic opportunity for Brazil in terms of jobs, development and tax revenue. Another advantage of regulating all forms of gaming is to bring in responsible gaming measures that address and help the small percentage of the population that suffers from problem gambling. Whether it be at a bingo hall, lottery or integrated resort, responsible gaming measures in Brazil should cover all platforms, just as they do in other markets such as Singapore and Japan, which looks to bring pachinko under the same veil as it passes legislation in this session of the Diet. The last major debate on this full gaming proposal occurred in March with the gaming bill PL 186/2014, which would have allowed for the regulation of the gaming market, including all forms of gaming. This proposal was defeated in surprising fashion, as stakeholders believed there were ample votes for the bill to pass. The bill was then rejected by the Senate Constitution and Justice Committee. Sponsored by Senators Ciro Nogueira and Benedito de Lira, it sought to bring the gray-market operations into a regulated environment under which the state develops a regulatory body to oversee and tax all forms of gaming, including bingo halls and online gaming. The bill also would have allowed for the development of IRs. Operators such as Caesars Entertainment have been supportive of the proposal to regulate land-based casinos, bingo halls and Jogo do Bicho, as well as online sports betting. Caesars has been supportive of PLS 186/2014 as executives believe it is a vehicle to increase tourism as well as regulate the entire market in Brazil. This also brings into regulation the existing market and allows for those to be operated under the law. MGM Resorts also has been active in the market, and continues to advocate for the market to become regulated.

IR-Only Bill Earlier this year, the Brazilian Senate debated an amendment to the PLS 186/2014 bill that would have allowed for an integrated resort-only plan. This would have thereby eliminated the need to regulate the existing market or consider additional gaming opportunities, including the online and sports betting markets. The plan, proposed by Las Vegas

It is estimated that the Brazil gaming market generates roughly $14.5 billion per year through the lotteries, sports betting, bingos and other forms. 18

Global Gaming Business JULY 2018

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Chamber of Deputies President Rodrigo Maia wants to only legalize integrated resorts as a way to increase tourism to Brazil

Sands Corp.—which has most recently promised to spend up to USD$8 billion in Brazil—argued in favor of this legislation saying that it allowed for “a limited and strictly regulated environment for gaming” and that it “does not believe in the dilution of the market.” While appreciating LVS’ view that a diluted market may limit the potential of its IR, it is simply unrealistic to believe that the passage of this law would result in the hundreds of thousands of gray-market machines operating today being shut down. Chamber President Rodrigo Maia has been an advocate for the casino-only plan, saying that this was the only way to boost tourism. He sought the position of only allowing casinos and not touching the existing forms of unregulated gaming as a way to generate additional revenue and jobs but in a much more limited fashion. This last-minute push, allowing for IRs only, derailed the bill and contributed to the negative vote. Las Vegas Sands, as a strong supporter of this bill, was also successful in ensuring that the bill did not allow online gaming. LVS has had a standing policy against online gaming for nearly eight years. In the United States, it has advocated for the Restoration of America’s Wire Act (RAWA) that would ban most forms of online gaming and stop existing operations in states like Nevada, New Jersey and Delaware, in addition to Pennsylvania, which is coming online in the near future. Under both bills, the exact number of integrated resorts to be authorized remains up for debate. Major cities including Rio de Janeiro and Sao Paulo seem like immediate choices, but other cities could be considered, including some more recent suggestions such as Recife and Salvador. It is likely that only three or four locations would be allowed if and when regulation is passed.

Next Steps Gaming failed in this legislation due to a lack of consensus among legislators as to the best approach to legalize gaming, rather than large opposition against the notion of legalized gaming. During the time of the Brazil Gaming Congress, the event organizer, Clarion, held a session in Brasilia with representatives from the legislative, executive and judicial branches of government to discuss the best practices in the laws and regulations. Nevada Gaming Control Board Chairwoman Becky Harris, along with other gaming experts, shared their experiences and answered questions on how to establish a regulated market, and factors that would contribute to its potential. Topics that were covered included the regulation of games and creating a strict regulatory market, the effects of tax policy, job cre20

Global Gaming Business JULY 2018

ation and economic growth opportunities, and responsible gaming initiatives. It also included the ability to put controls into place to regulate the market effectively across all platforms. Brazil will continue to be a strong case for IR development until it passes legislation, but the nation must address the existing markets in the same action. While there continues to be a debate among legislators and stakeholders interested in the market, there is one common theme that gaming prohibition is no longer an option. The gray market seeks to have its machines allowed and operated in an open, regulated environment to continue to offer customers games of chance. The online market is currently rampant in Brazil, and it remains unregulated and dominated by offshore operators. Through property regulations, Brazil could generate large levels of tax dollars for the state and protect its population from rogue operators. Many believe that the time is ripe for the addition of casinos in the Tourism Bill (PL 2724/2015), which is currently being debated. This was added into the debate because of the economic conditions in Brazil and the need for additional revenue. It was highlighted by a strike of truckers in Brazil at the end of May, which came in response to an increase in the gas tax and effectively shut the country down for days. However, the current version of the tourism bill at the time of this article does not include integrated resorts in its language, and it is likely that any amendments to the bill will not include any gaming. While the time may be ripe, there is still a clear lack of cohesiveness among legislators. This has been the challenge for the last several years, and especially in the last few months as legislation was derailed during the vote last spring. Stakeholders that can form a coalition between the existing bingo halls, other forms of gaming that are currently in Brazil and those that seek integrated resorts will most likely prevail. This group does, however, need to make its case and demonstrate the market potential through all forms of gaming, and clearly address the regulatory framework and its impact on the market. This will allow for responsible gaming measures to occur across all platforms of gaming as well. Hopefully, by the next Brazilian Gaming Congress, legislation will have been passed, maybe even as early as this fall’s legislative session after the election. However, Chamber of Deputies President Maia had suggested that any gaming expansion talk will have to wait until 2019. As things continue to develop legislatively, stakeholders should explore the full market potential and enact legislation that covers all forms of gaming to bring regulation to the market that can also generate tourism for the country.

Brendan D. Bussmann is a partner and the director of government affairs for Global Market Advisors.

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New Attitude Eric Persson strengthens the team at Aruze Gaming America while focusing on innovation and customer service to evolve the company as a supplier By Frank Legato

uch of the press of late related to slot supplier Aruze Gaming America has focused on the ongoing legal battles of company founder and owner Kazuo Okada, who is fighting to regain control of former Aruze parent company Universal Entertainment after he was voted off the board of Okada Holdings (which controls Universal) last fall. But the ongoing saga surrounding Okada and the Japan-based public company he founded has distracted attention from the much more positive stories coming out of the Las Vegas-based private company he owns. Aruze Gaming America has forged ahead with its own renaissance, which began with the arrival in March 2017 of Eric Persson, who took over as the supplier’s general manager and eventually was named the company’s president and chief operating officer. Persson came to Aruze from the operations side, most recently as senior vice president of Las Vegas Sands Corporation, topping a resume that included senior positions for Harrah’s Entertainment, Coast Resorts, Delaware North and American Racing and Entertainment. His arrival was part of an overall retooling of Aruze with industry veterans, in an effort to gain share in U.S. markets in the short term, and to evolve the company into a more complete gaming supplier in the longer term. In January, Aruze announced the promotion of Justin Arcemont to managing diretor of global sales. Arcemont manages global sales strategits as well as the global profit and loss for Aruze Gaming. He also serves as assistant general manager for Aruze Gaming America. He joined Aruze in July 2017 with 21 years of gaming experience, including multiple positions with International Game Technology, where he was most recently director of strategic accounts. Finally, also in January, Aruze hired gaming supply veteran Brandon Knowles as executive director of table games, to evolve and expand the company’s library of electronic table games and build the product library on the table side. Knowles arrived with a distinguished background in casino supply, beginning with executive stints in sales and product development for TransAct Technologies and Scientific Games, but more recently concentrating on the ETG side, as general manager of ETGs for Shuffle Master and senior product manager for ETGs at IGT. Together, the new executive team has already moved Aruze to the 22

Global Gaming Business JULY 2018

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“One of the first things I did (at Aruze) was the two-year software guarantee, because it was always very frustrating to me as a buyer to go out and spend $20,000 for a new cabinet, only to install software that doesn’t perform.” —Eric Persson, President and COO, Aruze

next level in product innovation and customer service. One of Persson’s first moves after he was made GM was to institute an industry-leading two-year performance guarantee on all products using the APX video platform, and on any new video platforms going forward. Just before last fall’s Global Gaming Expo, he added another industry first for Aruze customers, a six-year guarantee on any new APX cabinet purchase on hardware, software and service support. Persson says he instituted those guarantees because they are something he would have liked to see when he was an operator. “I was with one of the world’s largest buyers, Las Vegas Sands, and so, one of the first things I did (at Aruze) was the two-year software guarantee,” Persson says, “because it was always very frustrating to me as a buyer to go out and spend $20,000 for a new cabinet, only to install software that doesn’t perform. “Secondly, I came right behind that with the hardware guarantee. The truth is, this is part of a disruptive, intentional strategy designed to grow Aruze’s market share at the expense of our larger competitors... If you buy hardware from us, we’re going to make sure there are games to put on that hardware for at least six years.” He adds that in addition to new products like the revolutionary Muso cabinet and the Omni-Table (more on those later), the company is working on hardware support for ETGs in markets like Macau, where

“Muso was conceived to reestablish Aruze as a company to watch for outside-of-thebox cabinet design. The things that we did to help re-establish that were the backlighting, which no one is doing, and the industry-first wireless charging port. Players have already responded really well to it.” —Laura Sims, Product Manager, Aruze

the life cycle on the games can be very long. “In Macau, we have ETGs that are doing three times floor average, and some of those cabinets are 10 years old,” he says. “One of the things we’re working on right now is a hardware support package for that platform, so we can keep that roulette on the floor for another 10 years.”

Muso and More Meanwhile, Aruze is making sure there will be plenty of new products to be protected by those guarantees. The company has expanded both its ETG lineup and its variety of cabinet styles. The company’s innovations on the cabinet side are helping to diversify its lineup of both video and stepper slots. At last year’s Global Gaming Expo, Aruze debuted the Thor cabinet, featuring a curved 55inch HD monitor with a 21.5-inch tablet touch screen and dual USB charging ports; and the large-format Vertical 80, which stacks two 40inch monitors to present an 80-inch play surface. This year, the innovation continues with Muso Triple-27, a striking new cabinet featuring three stacked 27-inch monitors, a new highperformance sound system, an ergonomic glass-table button deck with a 13.3-inch LCD interface, and the first-ever wireless charging port on a slot machine. “Muso was conceived to re-establish Aruze as a company to watch for outside-of-the-box cabinet design,” says Aruze Product Manager Laura Sims. “The things that we did to help re-establish that were the back-lighting, which no one is doing, and the industry-first wireless charging port. Players have already responded really well to it.” Player response was one of the key factors going into the design, she adds. “We conducted the player focus test, and the the player responses were overwhelmingly positive,” she says. “We also have them rank the Muso against other industry cabinets, and they ranked it on par with the top-rated cabinets in the industry.” Sims says what players liked most about Muso were the threemonitor configuration and the spacious button deck. “Players said numerous times that they felt that that was a good space for them; they didn’t feel crowded, or too close to anyone nearby. It fits in the same footprint as the standard cabinet, so it gives that sense of space without taking up more physical space on the floor.” Fred Nunez, director of product management, adds that the wireless charging port—a pad on which a smartphone attaches for charging without the need for wires—was an even bigger hit with some players. “Those that recognized the symbol were excited and immediately put their phone on the spot to charge. Of course, not everyone has the lat-

JULY 2018 www.ggbmagazine.com

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“Everyone who looks at the Omni-Table can see the possibilities. It really stands out as innovation in the table-game sector, and I think everybody’s excited to see where we’re going to take it.” —Fred Nunez, Director of Product Management, Aruze

est phone, so we estimate about half of players recognize the symbol,” he says. Nunez says the Muso is based on APX, the same operating platform as the core Cube-X cabinet. “What that allows us to do is simultaneously port games to both the Cube-X and the Muso cabinet,” he says. “As technology improves, there will eventually be some new bells and whistles, but at the same time, we’ll provide software support and new product for the previous platform... It makes sure you have a lot of confidence as a buyer when you buy from us, that you’re going get your whole depreciated life cycle of your hardware cabinet.” “Since we’re using the same platform as the Cube-X,” adds Persson, “even if we do do an upgrade to an operating system, it means that we’ll have a dual development. So, it doesn’t matter if we come out with a new cabinet; it doesn’t even matter if we come out with a new platform, because what you can rest assured at Aruze, our software designers will be building game content for both.”

Table Innovation Persson says the innovations on the video slot side—and stepper side, with the Innovator series—augment an intense focus the company has been maintaining on the ETG side. “One of my focuses when I came to Aruze was to get back to the roots, which really is the ETG,” Persson says. “We crush it in that space. Our semi-autonomous craps game is coming out, which is a full-sized craps table that takes one fourth the labor and provides way more rolls per hour. We’re updating our Shoot to Win Craps product, which is 10 years old. In the next few months in North America, we have our Dragon Sic Bo rolling out. In some properties, that product is doing more than six times the floor average. We can’t build them fast enough!” At G2E last year, the company introduced the X-Station ETG line—featuring play stations in the Cube-X platform arranged in a circular 24

Global Gaming Business JULY 2018

configuration around the central play mechanism—with the Lucky Roulette and Lucky Big Wheel games. This year, groundbreaking products are taking Aruze further into the table-game market, led by a product called the Omni-Table. The Omni-Table is a hybrid electronic/live table platform equipped with a projection video display table and a felt surface, enabling flexibility for operators in the pit: There is a mounted touch-screen to change table limits, increase or decrease available spots, or completely swap out games, in a matter of seconds. Advertisements can be digitally displayed during game play, or when the table is inactive.“They can advertise their buffet, or the show for the evening,” says Knowles. Four popular common table games will be available at launch, with premium content packs available offering premium licensed games. “Omni-Table accommodates any live table game,” explains Knowles. “You can swap them out when you want, and you don’t have to change felts, because it’s all done with projection lighting.” Persson adds that operators can offer the product immediately, since they are presenting games that already have regulatory approval. “You’re not going to have to buy our table; you’re just going to buy our technology,” he says. “For example, for Lucky Sic Bo, we have a patent on the wager. With Omni-Table, you can bring that wager into the pit, and allow customers to have that wager available to them while they’re playing with a live dealer.” “Everyone who looks at the Omni-Table can see the possibilities,” adds Nunez. “It really stands out as innovation in the table-game sector, and I think everybody’s excited to see where we’re going to take it. And I think it’s the right time—ETGs have expanded, and you’re seeing a lot more dealer-assisted games that blend electronics with live table games. I think this is just the next transition in this area.” “From the moment our customers saw it,” adds Sims, “we got a number of responses of, ‘I was waiting for someone to do that.’” Another groundbreaking product coming soon is Roll to Win

WE CELEBRATED OUR 20TH ANNIVERSARY. THE NCRG GOT THE GIFTS. Thanks to the generous support of our players and sponsors in the 20th annual AGEM/AGA Golf Classic presented by JCM Global, we raised more money than ever â&#x20AC;&#x201C; an incredible $228,000. The beneficiary of this huge anniversary present is the NCRG and its important research into problem gambling. You can join the fight against problem gambling anytime by visiting NCRG.org.

T H A N K YO U T O O U R S P O N S O R S

Global Gaming Business

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“It’s going to be explosive for us this coming year. By the end of the year, all these products will be standing by the starting gates, if not already peeked out of the gate.” —Brandon Knowles, Executive Director of Table Games, Aruze

Craps, which takes the company’s runaway hit ETG Shoot to Win Craps to a new level. Shoot to Win is a popular automated craps game in which the shooter pushes a button to roll giant dice inside a transparent chamber. Roll to Win is a hybrid game with electronic betting stations around a normal-sized craps table, with players throwing real dice. “The beauty of this is that there is actually a dealer,” says Knowles. “We’ll be classified as a live ETG. Live ETGs have a big presence in Macau and Europe, but they haven’t really made a lot of penetration into the North American space. It’s going to be a growing space, so we want to capture the live ETG space with this live craps product.” Touch-screen betting causes the normal spots on a craps layout to light up to display each wager, with all the normal proposition bets available. The game proceeds as normal, but bets are made via a ticket-in/ticket-out interface with a bill acceptor. Wins are resolved electronically. The best thing for operators? Because of all the automation, only one pit employee is needed to run the game. The shooter throws the dice, and the dealer enters the result at a terminal; the point or other result is then instantly displayed on all the player terminals, and payoffs are instantaneous. Other advantages of Roll to Win include the electronic platform, which allows advertising on LED panels both on the table surface and the walls of the game. There is also the security that goes along with bets being reconciled electronically. “It offers considerably improved security over a regular live game, but still has the action and the excitement of craps,” Knowles says. “It still has 10 players around the table to create all that live excitement and celebration.” He adds that while the low labor cost makes Roll to Win a good vehicle to offer low minimums to novice players, he expects the game to attract a full spectrum of players—“not just the lower-end players, but all players, because of the way it operates, and the way it increases the number of rolls per hour.” Knowles says the product is expected to hit the market by the end of the year. Nunez says the Omni-Table and Roll to Win products are two of many results of an outpouring of R&D efforts at Aruze on the ETG side. “We do have a great R&D team, that has a lot of experience in the ETG space, and they’ve developed some great ideas on the ETG and purely electronic table game side,” he says. “We’ll be leveraging that experience. We have considerable feedback from the marketplace suggesting that communal and social environments are now the direction in which the market is going, so these two products fit that category very well.” Other new products on the ETG side include Super Big Wheel, a larger version of the Lucky Big Wheel electronic Big Six product released last year. “We added stations on each end, and we’ve got different ways to bet on the big wheel,” says Knowles. Knowles says all of the new ETG products will be on display at this year’s 26

Global Gaming Business JULY 2018

Global Gaming Expo. “It’s going to be explosive for us this coming year, he says. “By the end of the year, all these products will be standing by the starting gates, if not already peeked out of the gate. And next year, we’ll have Omni-Table. We’ll have Roll to Win Craps. We’ll have a new roulette product. We’ll have the Super Big Wheel product.” Beyond that, he says the company is developing a new line of RFIDenabled gaming chips, in yet another expansion of the table side of the company. “We are currently chasing all sorts of different ventures in the table game space,” Knowles says. Persson notes that this year’s G2E display will include a wealth of innovations ready for the market. “You’re definitely going to see a couple of new ETG products we haven’t been able to talk about that I think are going to be huge for the Asian market,” he says. “You’re going to start to see Aruze do its best to blur the lines between live table game play and ETG play. We’re going to start to try to invade the pit space. We’re going be taking some of our patented technology from slot machines and put it on a table game.”

Building Success More innovation is on tap for G2E in both the slot and table spaces. The Innovator Deluxe stepper platform will be ready for market, says Nunez, featuring a 42-inch LCD monitor on top of the core Innovator cabinet. More entries will be on tap for the large-format cabinets, and those ETGs Persson is keeping close to the vest for now. “We’re having a lot of success in this space,” he says, “and we continue to focus on it, and just try to keep creating really cool games.” On the slot side, says Persson, “we’re working on an upright that fits in a slant top’s footprint. Hardware design is one of the important elements of game experience. Our approach is to get in that space and compete hard. We’ll find things that we think are fun; we’re adding some new little things

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we think customers will enjoy, such as wireless phone charging. Most manufacturers have great hardware, but what we have is really that Japanese development touch. Aruze has always been into details and a unique cabinet like Muso is a great example. “It’s just another way that we’re showing our focus back into the core products that Aruze’s been good at,” adds Nunez, “and bringing that confidence back to the customer. This year’s been more about going through and really fine-tuning our games, and making them adaptable for certain markets. With our footprint growing across the U.S. as well as globally, we’re really going through and making sure that we have the focus on solving that content for those markets.” Aruze’s new sales and product strategies are already bringing results. Year over year, sales are up over 50 percent, and Persson believes they are just getting started. Arcemont adds, “We were able to achieve these increases by finding numerous efficiencies in our sales process. That 50 percent increase becomes even more incredible when you learn that we are just now releasing the products from our strategy change.” Persson says the expansion of the table-game business will lead to more growth. “We’re getting in the RFID chip business, and we’ve actually already got a few contracts,” he says. “And just like we’re trying to be disruptive in the slot business, we’re coming right after the chip makers. We’re going to sell chips for probably half the price of what they’re selling chips for.” Pending approval in a few more U.S. markets, Persson predicts Aruze’s revenues are going to double in the next 15 months. “One of the big strengths of Aruze is our past,” he says. “When you take a look at some of our bet features, like on Lucky Sic Bo for example, we have managed to take a traditional sic bo game, and fundamentally change the distribution of wagers. And the play is actually inversed from a live game, which is really to the casino operator’s benefit. And so, this is where our software development team comes in. They make great bets. They think about what consumers will want, and make a presentation in a way that they’ll accept it, and what happens is the customer’s happy because they like a lucky wager where their bet can double up, and the casino is happy because, on a game like Dragon Sic Bo, the side bets result in a higher house advantage.” In the end, Persson credits Aruze’s Japanese roots for its growing success. “When you see an Aruze product, you know,” he says. “And a lot of manufacturers have copied it. You’ve seen a lot of other manufacturers getting into that ETG space, but there’s still a distinct feel to the Aruze product. “And that is something that we’re getting back to, we’re embracing. At the end of the day, we’re a Japanese company; we’re going to embrace it. That’s what makes us successful; that’s our competitive advantage.” The other competitive advantage is the company’s small size, he adds, noting that it allows Aruze to remain nimble and respond quickly to market demands. “We’re not a huge company, we’re not publicly traded; we have one shareholder,” he says. “And so, we don’t have to answer quarter over quarter. We don’t have a stock price, we don’t have to worry about ship share and then make decisions to discount at the end of the quarter so we can beat the previous year-over-year comparison.” But the biggest competitive advantage? Customers respond to Aruze games. “At the end of the day, it’s about game play,” says Persson. “And our games perform.”

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

United States Sports Betting Greenberg Traurig’s Global Gaming Practice has the unique combination of real-world experience in the legal sports betting space and local offices in jurisdictions now considering sports betting legislation. We have assisted numerous international and Nevada-based sports betting companies in dealing with the myriad of complex matters relating to sports betting opportunities in Nevada and more recently in the United States as a whole. With the recent U.S. Supreme Court decision, GT is uniquely positioned, based on its years of experience, to properly represent sports betting operators, casino operators, and technology companies in many of the legal aspects of the sports betting business from drafting enabling legislation and regulation to the various unique operational matters that arise from betting operations. As GT views this expanding betting space, we have designed a multifaceted, interrelated approach to assist clients wanting to enter this market. Contact us today to learn more. Mark A. Clayton | 702.599.8006 | claytonm@gtlaw.com Martha A. Sabol | 312.476.5114 | sabolm@gtlaw.com Edward R. Winkofsky | 312.456.8440 | winkofskye@gtlaw.com Erica L. Okerberg | 702.599.8073 | okerberge@gtlaw.com

G R E E N B E R G T R A U R I G , L L P | W W W. G T L AW. C O M The hiring of a lawyer is an important decision and should not be based solely upon advertisements. Before you decide, ask us to send you free written information about our qualifications and our experience. Prior results do not guarantee a similar outcome. Greenberg Traurig is a service mark and trade name of Greenberg Traurig, LLP and Greenberg Traurig, P.A. ©2018 Greenberg Traurig, LLP. Attorneys at Law. All rights reserved. Attorney Advertising. Contact: Martha A. Sabol in Chicago at 312.456.8400. °These numbers are subject to fluctuation. 30939

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OPERATIONS

The True Missing Piece How to implement online reward redemption

By Marco Benvenuti

ith all the innovation casinos have made in valuing players, loyalty tracking and direct marketing, there’s one piece of the puzzle that’s still completely missing. It’s the elephant in the room that few in the industry will talk about openly. It’s a simple fix that stays behind closed doors because, despite its ability to change the game for the casino industry, most casinos are unable to execute it. To this day, decades after hotel room distribution moved online, many of your gaming guests cannot redeem their offers—room discounts and comps, free-play packages, amenity discounts, etc.—when they’re booking their overnight stay on your website. Why? It boils down to the fact that there are many disparate systems required to run an integrated casino resort. Because the hotel doesn’t drive the revenue, connecting the hotel revenue management software is rarely a priority. Rewarding your most loyal players with discounts and comps, and allowing them to redeem those offers on your website, works best when there’s communication between the casino management system (or patron management system), the hotel property management system, the revenue management system and the booking engine. Integrations between these different vendors are hard to come by, and slow and costly to build. Most casino management systems operate with closed interfaces. Unlike public APIs (that are openly available to developers with few restrictions), this strategy allows vendors to charge large sums of money to build an integration and tap into communicating and sharing data with their system. For many of the large legacy systems, it’s tough to get them to even pick up the phone.

To their credit, a small amount of the megaglobal casino companies have built their own proprietary systems to handle online redemption. Unfortunately, these systems are tough to integrate with. For the several hundred other casinos without the dedicated financial, labor and time resources, online redemption remains a pipe dream. As it stands today, there are a handful of hotel industry booking engines that claim to offer online casino loyalty redemption, but buyer beware: They simply don’t have the integrations necessary to make it work. Several of the major casinos in Las Vegas and across the country have been trying to implement this feature for years with little to no success.

What Will Online Loyalty Redemption Change? First and perhaps most importantly, the ability for casino guests to redeem offers online will allow for more dynamic player reward programs. As it’s done today—deciding which players get free rooms, alerting them through a postal mailer and asking them to call your call center to redeem—loyalty redemption is a static strategy that doesn’t allow casinos to react to market conditions. For example, guests can ask to redeem their offer during your busiest week of the year, and your only options are to enforce blackout dates or give away revenue. With a working online-redemption system, casinos are still valuing guests accurately based on total customer worth and average daily theoretical spend, but now they’ve got the ability to be a lot more dynamic with offers. Instead of offering comped rooms, you can use marketing terms such as “up to 50 percent off” or “potential for a comped room,” wait for the player to request their offer, and then quote a more dynamic rate based on true total customer value and the property’s supply-

With a working “online-redemption

system, casinos are still valuing guests accurately based on total customer worth and average daily theoretical spend, but now they’ve got the ability to be a lot more dynamic with offers. ”

Global Gaming Business JULY 2018

demand dynamics. Next, more dynamic reward redemption would pave the way for the transition from casino postal mail marketing to more cost-effective electronic marketing. Currently, the response rate on email is low and casino marketers believe a bold laminated postcard is the best call to action for players. But interactive and dynamic rate redemption on the web would undoubtedly grow response rates. As a side benefit, moving your player loyalty data and redemption online also allows for crossproperty guest data storage, meaning each of your connected casinos will be sharing profile and customer worth data. Now, when a player visits one of your casinos and later visits another, you can use previous spend data to quote them the right offer. Finally, don’t forget that more dynamic loyalty offers benefit your players as well. Instead of waiting for their mailer and then dodging blackout dates, players can now call anytime to get a personalized rate based on their true, real-time value to your property.

Casino Industry Innovation is a Win-Win Valuing your players based on their true total worth—what they spend on the gaming floor, in the hotel room, at the restaurant and spa, etc.— and immediately offering them a personalized rate is the holy grail. Major casino companies with multimilliondollar budgets have patchworked their way to temporary solutions, but an industry sea change will require drastic improvement in tech vendor collaboration. Because of API hurdles, we’re still quite a ways away from industry-wide adoption. Accelerating efforts toward online redemption has been a long time coming and could be a major industry innovation. Not only is it best for the profitability of your property, but it will also finally remove extra friction in the booking process and allow guests to redeem their offer on the same channel where they prefer to book their trip. Marco Benvenuti is the co-founder and chief marketing and strategy officer for Duetto.

Electronic Table Games

The options are endless! IGT’s electronic table games provide countless options for your floor and your players. With player-favorite game offerings like blackjack, roulette, baccarat, and sic bo, why pick just one? Give players the ability to select their perfect mix of games, and play as many as they want simultaneously. Improve speed of play and reduce operational costs by enabling live dealers to send game outcomes to multiple players from a single table. For more information, or to learn more about increasing your bottom line, contact your IGT Account Manager or visit igt.com © 2018 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 herein are subject to change

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Not a Sure Thing Tribal participation in sports betting is complicated and uncertain obert Martin, chairman of the Morongo Band of Mission Indians, views the looming political war over sports betting in California with a sense of dread, largely because it comes on the heels of a failed, decade-long battle to get online poker legalized in the Golden State. The protracted political war over online poker cost Morongo “just shy of $5 million,” Martin says. And the chairman is not keen on the notion of spending anywhere near that much to help finance the legislative effort and public referendum needed to legalize sports betting in California. “It’s going to require a constitutional amendment and a bill,” Martin says. “After all the time and money we spent on internet poker, I’m not willing to risk taking a stab at that. “I have to look after the interests of my tribal members,” Martin says. Unlike commercial casinos, gambling in Indian Country generates government revenue to benefit tribal citizens.

Tribal Sovereignty vs. States’ Rights The fact nearly 500 American Indian casinos in 28 states are essentially government enterprises has been ignored or given lip service in the media debate following the May U.S. Supreme Court decision declaring a federal prohibition on sports betting to be unconstitutional. But that is precisely why many, if not most, of the approximately 245 tribes operating casinos—including 62 California tribes—remain at least cautious about the risky, expensive and marginal business of sports betting. 30

Global Gaming Business JULY 2018

By Dave Palermo “I haven’t seen any enthusiasm for it at all,” says Steve Stallings, chairman of the California Nations Indian Gaming Association (CNIGA) and a member of the tribal council for the Rincon Band of Luiseño Indians. The Indian Gaming Regulatory Act (IGRA) allows tribes to operate and regulate their casinos free from taxation and with minimal state oversight. But state laws and tribal-state regulatory agreements, or compacts, required under IGRA limit what tribes can offer in their casinos. Tribes can only offer forms of gambling otherwise legal in the states in which they are located. Sports wagering also will require tribes in California and elsewhere to negotiate new or amended compacts, an often lengthy process often fraught with politics and state demands for a cut of tribal revenues. Several tribes pay exclusivity fees to operate casino-style gambling. Finally, a legal cloud remains over the ability of tribes under IGRA to accept sports and internet bets from off Indian lands. Some tribes may pursue sports betting as a commercial venture, taxed and regulated by states, instead of gambling under IGRA, enabling them to move into an era of mobile, online wagering.

Finance, Legal Obstacles Only a few tribal casinos in Arizona, Oklahoma and other states seeking sports betting have the resources to build and operate sports books, a

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“I have to look after the interests of my tribal members.” —Robert Martin, Chairman, Morongo Band of Mission Indians

time-consuming, labor-intensive and costly endeavor that on average generates a roughly 4 percent to 6 percent profit margin. John Repa of Hospitality and Gaming Solutions says about eight California casinos would run a book if they had the opportunity. Others may consider adding betting windows to a sports bar or installing a kiosk. Many will do nothing at all. Meanwhile, tribes in California and many other states—particularly in the Midwest and Great Plains—face potential competition from commercial casinos, lotteries, cardrooms and parimutuel racing interests, all clamoring to get into the sports betting business. A widely circulated Associated Press report states that “hundreds” of tribes welcome the “opportunity” to engage in sports betting. That prediction appears to be a bit of a stretch. “Most tribes see sports betting as a threat to cut into profits in an already-competitive industry,” says a tribal Capitol Hill lobbyist who requested anonymity. “Then you have a very small handful of tribes that see it as an added amenity.” Meanwhile, elected officials in states where tribal casinos dominate the landscape may have to overcome tribal political clout and maneuver a minefield of Indian law to reap the tax benefits of sports betting. And the public demand to bet their favorite teams may not be satisfied anytime soon. “The debate literally raging within the casino industry over sports betting is generally missing an in-depth analysis of business model and viability,” says consultant Joe Valandra, a Sicangu Lakota and former chief of staff for the National Indian Gaming Commission (NIGC). “This is most glaring when Indian gaming is included in the mix. There is no clear path for tribes yet,” Valandra says, and indigenous communities “are likely to be cast as the spoiler in states where they have a political voice.” The National Indian Gaming Association (NIGA)—a lobby and trade group representing some 184 casino tribes—adopted a resolution this spring supporting repeal of the Professional and Amateur Sports Protection Act (PASPA). But the NIGA resolution demands any federal and/or state legisla-

tion acknowledge tribal sovereignty, tax exemptions and tribal-state exclusivity agreements while granting tribes parity in online wagering, conditions intended to protect tribal government revenues. NIGA Chairman Ernie Stevens, in a prepared statement, said tribes are “encouraged” by PASPA’s repeal. But he added a few words of caution. “Indian Country has diverse economies that will be impacted by the federal or state legalization of sports betting,” Stevens says. “As a significant stakeholder, our gaming tribes look forward to being at the table in establishing the critical regulatory framework that will minimize the negative impacts of sports betting on tribal casinos.”

A Survey of Tribal States The 17 Arizona tribes operating 23 casinos are planning to include sports betting as part of negotiations on tribal-state compacts set to expire in 2022. Navajo Nation and the Gila River and Salt River Pima Indian communities have openly expressed a desire to get into the business. Sports betting will also be a topic in upcoming compact talks between Oklahoma officials and 31 tribes operating about 130 gambling operations ranging from traffic plazas to resorts. The Cherokee and Chickasaw nations both say they want to offer sports books. Talks between tribes and Arizona Governor Doug Ducey might be a bit dicey. Ducey wants to extend licenses to 55 off-track betting operations, encroaching on what tribes believe is their exclusive right in the compacts to casino-style gambling. “I think the tribes are very interested in exclusivity,” says tribal attorney Stephen Hart of Lewis Roca Rothgerber Christie. “I think tribes would be willing to sit down and negotiate something with the governor’s office. But I would be very surprised if it involved commercial gaming.” Exclusivity will also be an issue in Oklahoma, where, like Arizona and several other states, gambling policy is largely dictated by the tribes. “I believe the tribes are justified in seeking exclusivity under the compact,” says attorney Jennifer Lamirand of Crowe & Dunlevy, a member of the Citizen Potawatomi Nation. “It’s yet to be seen if the state will agree or come up with a different alternative.” As is the case in Arizona and elsewhere, only a few Oklahoma tribes

Sports wagering will require tribes in California and elsewhere to negotiate new or amended compacts, an often lengthy process often fraught with politics and state demands for a cut of tribal revenues. JULY 2018 www.ggbmagazine.com

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“(Tribes) are likely to be cast as the spoiler in states where they have a political voice.” —Joe Valandra, former chief of staff, National Indian Gaming Commission

will delve into the business. “Not all the operations are going to have a need or the taste for sports betting or the ability to get it up and running,” says Lamirand, an associate justice on the Potawatomi Nation’s Supreme Court. “I believe there will be a handful of tribes that actually pursue it. “Most tribes recognize it is a pretty extensive and expensive endeavor to get off the ground.” The Mohegan and Pequot tribes of Connecticut are seeking exclusivity to operate sports betting, and the Seminole Tribe of Florida and Poarch Band of Creek Indians in Alabama operate largely free of competition. The Oneida and Seneca nations of New York also want to operate books. Efforts to legalize online wagering and sports betting in Michigan— with three commercial casinos in Detroit and a dozen tribes operating 23 gambling operations elsewhere—have proven problematic. Michigan tribes over the years have seen their promised regional exclusivity eroded. They do not look kindly at gambling proposals calling for increased revenue sharing with the state. Many Michigan tribes are in the throes of protracted compact negotiations. And it is not clear how tribes will adapt to online provisions in pending state legislation. Jim Wise, vice president of marketing for the FireKeepers Casino Hotel, owned and operated by the Nottawaseppi Huron Band of Potawatomi, says the tribe is monitoring legislative activity but has not decided whether to add sports wagering to the mix of amenities. “We expect there will be a lot of discussion about this topic in the coming weeks and months, but until there is something more to react to, it’s probably premature to speculate,” Wise told the Detroit News. The Oneida and Ho-Chunk tribes of Wisconsin are not sure the economics of sports wagering warrant opening up compacts for negotiations. “The Supreme Court decision just came down, and we’re trying to wrap our minds around it,” Oneida spokesman Phil Wisneski told USA Today. “Leadership has been talking about it, trying to figure out the potential impacts.” There also doesn’t seem much taste for sports betting in Washington, where two dozen tribes operate casinos in a state more concerned with limiting than expanding gambling. “I don’t get myself too worked up over it,” says Ron Allen, chairman of both the Jamestown S’Klallam Tribe and Washington Indian Gaming Association. “The margins are small,” he notes, and the business can be risky. “I refer to it as a gambling entertainment amenity that adds to the mix,” Allen says. While some interest in sports betting can be found in Arizona, Oklahoma and on the East Coast, the pushback comes from California and the nearly 70 rural, mostly marginal casino tribes in the Great Plains and 32

Global Gaming Business JULY 2018

4 Bears Casino and Lodge, North Dakota

Midwest. “It’s location, location, location,” says attorney Phil Hogen, former NIGC chairman, and an Oglala Lakota from the impoverished Pine Ridge, South Dakota reservation. “If you’re in a metropolitan area with a lot of traffic coming your way, it’s an opportunity. “But I don’t see a lot of people driving to Pine Ridge to do sports betting.” “Our little casino, maybe in a good year, nets $1 million,” says Valandra, a citizen of the Rosebud Sioux Reservation on the North and South Dakota border. “The chief advantage of the casino is it provides 230 jobs. “That’s true for almost every tribal casino in North Dakota, South Dakota and Montana. They provide jobs. Tribes are very fearful of making changes that might impact those jobs.” The 11 tribes in Minnesota have a compact in perpetuity with no revenue share with the state, an agreement they are not likely to amend in exchange for the opportunity to offer sports betting, says John McCarthy, executive director of the Minnesota Indian Gaming Association (MIGA). “The Shakopee Mdewakanton Sioux Community seemed neutral,” a sports wagering consultant says of a recent meeting with Minnesota tribes. “All the others seem opposed.”

“I refer to it as a gambling entertainment amenity that adds to the mix.” —Ron Allen, Chairman, Jamestown S’Klallam Tribe and Washington Indian Gaming Association

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2018

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“I don’t see a lot of people driving to Pine Ridge to do sports betting.” —Former NIGC Chairman Phil Hogen, a member of the Oglala Lakota in Pine Ridge, South Dakota

A MIGA press release stated tribes would give sports betting serious thought, adding the association “has long opposed the expansion of gambling.” A public appetite for sports wagering could alter the politics in many states. “The citizens in many of these states are going to want an opportunity to bet on sports,” says Norm DesRosiers, a regulatory consultant and former NIGC commissioner. “I don’t think they’re going to sit by and let the Indians stop it. “If the tribes see a state legislature is going to offer it to whatever outlets choose to operate sports betting, they’re going to be faced with getting on board or not.”

Fear, Loathing in The Golden State California is the nation’s most lucrative gambling market, with 61 tribes

operating 63 licensed casinos, according to the California Gambling Control Commission website. The Lytton Band of Pomo Indians operates a Class II facility not subject to state regulation. California tribes generate $8 billion, about a fourth of the $31.2 billion annually won by tribes nationwide. “We view sports betting as a potential amenity that would complement our numerous offerings,” says Chairman Mark Macarro of the Pechanga Band of Luiseño Indians, operators of arguably the state’s largest and most lucrative casino resort in rural Temecula. “We look forward to engaging in a conversation with fellow tribal leaders, policymakers and industry stakeholders to see if there is a path forward for sports betting in California.” As is the case in Minnesota, Macarro consistently cites the state’s policy of limited gambling during the decade-long debate over online poker. He and his tribal colleagues will likely work to maintain that policy, if not seek sports wagering exclusivity for tribes. “California voters have, on numerous occasions, confirmed the exclusive right of California tribal governments to operate casino-style games,” says CNIGA’s Stallings. “Legalization of sports betting should not become a back-door way to infringe upon that exclusivity.” Unfortunately for the tribes, their constitutionally guaranteed casino exclusivity is limited to slot machines, lotteries and banked table games. It does not include sports betting. A proposed constitutional amendment by state Assemblyman Adam Gray does not specify licensees, but the list is expected to include tribes, parimutuel racetracks and card rooms. “The gaming industry needs to come together to ensure this opportunity is available for everyone in the state,” Kyle Kirkland, president of the California Gaming Association, a card-room lobby, said in an opinion piece in the Sacramento Bee. “Our constitution grants tribes the exclusive right to banked card games, but does not provide anyone the right to conduct sports wagering.” “It is a casino-style game,” Stalling replies. “It is house-banked. The tribes will probably argue this is an activity that is exclusive to the tribes. “If you’re going to legalize it you’re going to have to start by talking with us.” The lobby war between tribes, card rooms, racetracks and fantasy sports interests leading up to a possible 2020 referendum will likely be hard fought. Tribes and card rooms are already engaged in a vicious politi-

San Jose, California card room Casino M8trix

The lobby war between tribes, card rooms, racetracks and fantasy sports interests leading up to a possible 2020 referendum will likely be hard fought. Tribes and cardrooms are already engaged in a vicious political and regulatory row over banked table games in the state’s 88 card rooms. 34

Global Gaming Business JULY 2018

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cal and regulatory row over banked table games in the state’s 88 card rooms. Tribes contend the games violate their exclusivity. The card rooms claim the games are necessary to preserve an industry that employs more than 20,000 people and provides critical tax revenue to several municipalities.

City Books, Tribal Distrust Sports books and banked table games, in addition to restaurants and hotel rooms, would in the view of tribes constitute urban casinos, creating unfair competition to the rural tribal operations. It also would jeopardize the revenue stream that funds tribal governments. When racetrack and card-room interests in 2004 attempted to get voter approval of urban casinos, tribes spent $33 million to defeat the effort by a vote of 76 percent to 24 percent. California tribes in the months ahead will debate what sports betting will look like in the Golden State—whether exclusivity should remain with tribes or shared with other vendors, particularly the racetracks or card rooms. They also will debate the issue of online and mobile wagering, whether

it’s time to move away from IGRA and begin pursuing commercial gambling opportunities. At some point a ballot initiative may surface and tribes will be faced with the sustainability of their governments for decades to come. Then they will flex their political clout. “If we saw a referendum as a threat to our exclusivity and operations, I truly believe the tribes, with the right messaging, could defeat it,” Stallings says. Indian advocates say it is foolish to suggest tribes stop short of doing all they can to preserve and protect IGRA and the flow of revenue from their casinos, which provides housing, health care, education and other services to their citizens. “It’s really hard to understand what we’re fighting for, why it’s so important,” says Steve Bodmer, general counsel for the Pechanga Band. “There’s no substantial tax base for many tribes in Indian Country,” Bodmer says. Unlike commercial casinos, he says, gambling revenue “is not going to help a CEO buy a yacht. It’s going to take care of tribal members.”

JULY 2018 www.ggbmagazine.com

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FRANKLY SPEAKING by Frank Legato

Beyond the Casino

Global Gaming Business JULY 2018

vibrations is simply not an experience I find pleasant. Besides, it distracts me from figuring out how I’m going to pay for the booze. Hip-hop music even chased me out of a bar last month at the Roosevelt Hotel in Hollywood. I ended up at the Pig ‘N Whistle. (No, that has nothing to do with casinos, but since I mentioned it here, the Hollywood trip is now tax-deductible.) So, what else is there? Zip lines and bungee-jumping are out, since even a simple rollercoaster will turn my ancient back into a twisted wreckage. Virtual reality? Makes me nauseous. Grand retail facilities? I hate to shop. Fine dining? OK, but since I’m based in the East, I’m usually alone for my Vegas stays, and if I have no companion to impress, I’ll go for In-N-Out Burger over a French restaurant every time. Hey, there are no In-N-Out Burgers in the East. Barely even a Fatburger. The eSports tournaments could be a fun non-gaming activity for me. I’ve always wanted to watch pimply teenagers play video games, and now I can even bet on them. I will have to familiarize myself with the eSports stars, though. Let’s see... There’s JesusStick, FruitDealer, Balls, SaintVicious, Faker, and my personal favorite, Dr. Peepee. And they all look like they just got back from the junior prom. Can they be my new heroes? If I gamble on them, and they win, damn right they’re my heroes. But then, that can’t be considered a non-gaming activity, right? I’m so confused. Meet me at the $5 craps table, and we’ll talk about the non-gaming phenomenon. Oh, right. No $5 craps. Well, meet me off the Strip. And if you can, bring Dr. Peepee with you. I want to get his autograph. VIC TOR RINAL DO

fter three decades of going to casinos while covering this industry, I seem to have become something of a dinosaur. No, I’m not talking about my physical appearance, since obviously, dinosaurs don’t have mustaches. I’m talking about the fact that my main reason to be in a casino is, still, to invest my disposable income in the art of gambling. (Yes, there are more wise investments. But they don’t come with a free buffet.) There was a time when casino operators considered a customer like me the bee’s knees. (And when people actually used the term “bee’s knees.”) Operators loved a gambler. The casino was the center of the industry universe, so operators devoted themselves to keeping you in the casino for, like, the rest of your life—or until your pockets were empty, whichever came first. Yes, back in those days, we actually kept cash in our pockets. We didn’t have cash-out tickets, debit cards or smartphones. We smoked cigarettes, wore fedoras, and complained about “that damn Roosevelt.” But anyway, a casino used to give away everything outside of the casino, to keep you coming back to the casino. You got free shows, $3 prime rib and free rooms, which were just uncomfortable enough to keep you out of the rooms and in the casino. Today, at least in the case of the Las Vegas Strip, non-gaming revenue dominates, as operators try to create the “complete resort experience.” Translated, that means you pay for everything. Hundreds of dollars from what used to be a gambling budget now go for shows, fine dining, nightclubs... even parking, for crying out loud. Of course, there also is a lot of entertaining non-gaming stuff that wasn’t available in the old days. There are virtual-reality attractions, zip lines, bungee-jumping, eSports tournaments and lots of other stuff to keep you occupied outside of the casino. Because of this, when I visit a Strip resort these days, I try to look for fun new things to do. Granted, the main reasons I do this have to do with gambling. The minimums at the craps tables generally require financing plans, and I’ll have an easier time finding the exhumed, reanimated zombie corpse of Liberace than locating a full-pay video poker machine on the Strip. So, I often look around for other things to do. Hot nightclubs? No thanks. I can’t see the value in paying $400 for a bottle of hooch, or $15 for Maker’s Mark on the rocks, for that matter. Also—and being a child of the ’60s, I never in my wildest dreams thought I would ever say this—the music is too darned loud. Egad, did I just say that? I’ve become my dad. Heck, I’ve become my grandfather. But honestly, even though I’ve played bass in actual, live rock bands for decades, DJ hip-hop music that bops me up and down with

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RISING STARS Nominations Open for GGB’s 40 Under 40

Under

Forty

e annual 40 Under 40 list of rising stars in the gaming industry is confirmation that new blood will invigorate the industry for years to come. Nominations are now open for inclusion for this prestigious honor. How does the GGB Editorial Advisory Board identify candidates for the list? Are there special individuals in your organization under the age of 40 who have contributed above and beyond your expectations? Have you noticed a young person in the public or private sector who embodies leadership roles? Or do you believe that your abilities set you apart from your peers who are also under 40?

To nominate yourself or someone else for GGB’s 40 Under 40, visit GGBmagazine/40U40. All entries for GGB’s 40 Under 40 will automatically be entered into G2E’s Emerging Leaders program.

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Front

Getting Out

The gaming industry is proactively leading the charge with respect to new responsible gaming efforts | By David Waddell

s the gaming industry continues to grow and expand into new types of gaming, the two major gaming industry trade associations, the Association of Gaming Equipment Manufacturers (AGEM) and the American Gaming Association (AGA), casino operators, and regulators in emerging jurisdictions such as Massachusetts are taking a lead role in seeking to assure that effective and appropriate responsible gaming initiatives are implemented, working with the National Council on Problem Gambling and the National Center for Responsible Gaming. Four years ago, AGEM appointed Connie Jones as its director of responsible gaming. Jones came to AGEM after spending 14 years focused on the topic as director of responsible gaming at IGT. She is currently a member of the International Masters of Gaming Law (IMGL) and chairs its Responsible Gaming Committee. She also has worked closely with the treatment community, government bodies and gaming industry representatives to formulate strategies to address compulsive and problem gaming. “AGEM’s responsible gaming efforts include working with and supporting major problem gambling organizations both in the U.S. and internationally,” says Jones. “In addition to sponsoring the National Conference on Problem Gambling, AGEM is a supporter of the prestigious 12th European Association of Studies on Gambling Conference in Malta, September 11-14.” In her role at AGEM, Jones helps the association formulate a responsible gaming policy and plan, and has represented AGEM with a variety of organizations at industry events, conferences and trade shows. Under Jones’ leadership, AGEM has been very focused on the topic of responsible gaming, and has played a key ongoing educational role for the association’s 166 member companies. “AGEM’s approach to responsible gaming reflects our organization’s broad global membership,” she says. “In today’s rapidly changing gaming environment, attention is being directed at game design and suppliers more than ever. Responsible gaming is top-of-mind in emerging jurisdictions such as Japan, as well as more established gaming markets like Australia and the U.K. “It is imperative that we are aware of problem gaming sensitivities in jurisdictions around the world where our members conduct business—particularly as they relate to game design and promotion.”

Industry Cooperation In mid-April, the AGA convened leading gaming industry organizations, academic professionals and advocacy groups to chart a new course on the complex issue of responsible gaming. The AGA announced that its new Responsible Gaming Collaborative will identify the programs and policies that best address responsible gaming and the prevention of problem gambling, and will hold government accountable for supporting proven, effective solutions.

Global Gaming Business JULY 2018

“It’s time to comprehensively review existing responsible gaming policies and regulations,” says Geoff Freeman, president and CEO of the AGA. “We must drive a new discussion around proven, effective programs and ensure that governments are appropriately allocating resources.” The gaming industry is estimated to provide governments with hundreds of millions of dollars annually for responsible gaming research and treatment. The spending of those resources is inconsistent across jurisdictions, and no programs exist today to ensure accountability with regard to how the money is spent. In addition to the AGA, key Responsible Gaming Collaborative participants include the National Council on Problem Gambling, the National Center for Responsible Gaming, the University of Nevada, Las Vegas International Gaming Institute, Harvard University’s T.H. Chan Public School of Health, Yale School of Medicine, the National Indian Gaming Association, AGEM, the North American Association of State and Provincial Lotteries and the National Thoroughbred Racing Association. “This Collaborative with its diverse set of stakeholders is a welcome step forward to creating a unified approach to addressing problem gambling,” says Keith Whyte, executive director of the National Council on Problem Gambling. “No one party or way of thinking is ever enough to create transformative change. That’s why this group is so essential,” says Russell Sanna, executive director the National Center for Responsible Gaming. “We appreciate healthy dialogue and debate and are striving to use focused, evidence-based

“It is imperative that we are aware of problem gaming sensitivities in jurisdictions around the world where our members conduct business— particularly as they relate to game design and promotion.” —AGEM Director of Responsible Gaming Connie Jones

“We appreciate healthy dialogue and debate and are striving to use focused, evidencebased proposals to drive improvement, in both industry practices and government regulations.” —Russell Sanna, Executive Director, National Center for Responsible Gaming

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proposals to drive improvement, in both industry practices and government regulations.” The AGA announced that the collaborative will: • Conduct a comprehensive review of current responsible gaming policies and regulations; • Identify programs that work and those that fail to meet their objective; • Study regulations to determine which are based on solid evidence; • Determine whether government resources are being properly targeted toward effective programs and prevention; • Develop a set of recommendations and industry best practices; and, • Work with regulators and other stakeholders to understand the best approaches. “The word ‘collaborative’ was chosen deliberately,” says Freeman. “Our goal is to work with regulators, policymakers, experts, advocates and other stakeholders to find the best solutions and direct resources to them.” Jones says, “The Responsible Gaming Collaborative will provide enhanced opportunities to share ideas with other stakeholders to refine responsible gaming initiatives.”

“This collaborative with its diverse set of stakeholders is a welcome step forward to creating a unified approach to addressing problem gambling.” —Keith Whyte, Executive Director, National Council on Problem Gambling

Making Sense of Gaming The Commonwealth of Massachusetts, which “As gambling grows as introduced gaming at the Plainridge Park a mainstream Casino several years ago, and will soon welcome entertainment option a new MGM facility in Springfield, has also around the world, taken a very focused approach on the topic. GameSense ensures Mark Vander Linden, director of research responsible gambling and responsible gaming at the Massachusetts gets an equally Gaming Commission, has outlined a “Remainstream discussion.” sponsible Gaming Framework 2.0” (RG Framework) which was presented to the full —Alan Feldman, Chairman, commission in May. National Center for Rather than taking an approach which Responsible Gaming mandates behavior as part of a regulation, the framework is intended to inform responsible gaming regulation in Massachusetts and provide an overall orientation to responsible gaming practices and policy adopted by MGC licensees. The goal of the RG Framework is to “create an effective, sustainable, measureable, socially responsible and accountable approach to gambling.” The RG Framework begins with an overview of gambling behavior in Massachusetts, which then sets the stage for seven responsible gaming strategies which primarily focus on prevention and player protection. The commission is committed to keeping an open dialogue with licensees to collaboratively achieve implementation of these strategies. Alan Feldman, chairman of the National Center for Responsible Gaming, a member of the Advisory Board of the Nevada Council on Problem Gambling and executive vice president of MGM Resorts International, has been a leading catalyst for the change that is occurring within the gaming industry in the topic of responsible gaming. In 2017, MGM Resorts launched its “GameSense” program nationwide, de-

signed to help guests make informed decisions and keep gambling fun. The GameSense program was developed by the British Columbia Lottery Corporation. It encourages players to adopt behaviors and attitudes that reduce the risk of developing gambling disorders. This includes setting and sticking to personally allocated time and monetary limits for gambling, as well as being open and honest with family, friends and oneself when it comes to personal gambling habits. GameSense was first licensed in the U.S. by the Massachusetts Gaming Commission. MGM Resorts was introduced to GameSense by the commission during the development of MGM Springfield. After reviewing the program, MGM Resorts decided to modify GameSense and integrate the program into its properties nationwide. The program was introduced at the company’s Las Vegas Strip properties in October and expanded nationwide in December. “GameSense is already transforming how the industry approaches responsible gambling, and MGM Resorts is at the forefront of driving the conversation and responsible gambling culture,” says Alan Feldman, MGM’s executive vice president of global industry affairs. “The tremendous—and growing—number of responsible gambling interactions is truly unprecedented and unlike anything the industry has ever seen. “GameSense builds stronger, more sustainable relationships with our guests by teaching them how to keep gambling fun. As gambling grows as a mainstream entertainment option around the world, GameSense ensures responsible gambling gets an equally mainstream discussion.” As part of its GameSense agreement, MGM Resorts also committed to funding $1 million over five years for responsible gambling research. This includes a partnership between BCLC, MGM Resorts and the UNLV International Gaming Institute.

NCPG Conference Keeping up with all of these developments and understanding the future direction to addressing this important topic is a daunting task. Fortunately, there is an upcoming conference which will address all these topics and more. On July 20-21, the National Council on Problem Gambling will hold the 32nd National Conference on Problem Gambling in Cleveland, Ohio. The 2018 annual conference program will highlight best practices and rising trends in problem gambling and responsible gaming. This year’s program features a new track focused specifically on the military and veterans. Additionally, part of the program is going to focus on the developments in Massachusetts and some of the baseline research that has been conducted. “We’re very excited about the initial results from GameSense, and look forward to presenting the results at the NCPG Conference in Cleveland,” Feldman says. “There is no more esteemed a group that can appreciate the significance of this historic undertaking.” In addition to the upcoming conference, August 6-10 is the AGA’s Responsible Gaming Week, a week where the industry as a whole focuses on this important issue and promotes educational efforts to inform both the public and the members of the casino gaming industry. David Waddell is a gaming attorney and president of Regulatory Management Counselors, P.C. (RMC), a firm that helps businesses manage compliance matters in multiple jurisdictions in an efficient manner. RMC publishes the MichiganGaming.com newsletter and RMC Daily Newsfeed, and has played an active role in contributing to the GamingRegulation.com website. Waddell is also a longstanding member of IMGL and IAGA, and has authored or co-authored numerous books and publications on gaming and legal topics. JULY 2018 www.ggbmagazine.com

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How Tough is Tough? Why the Nevada regulatory system continues to be the gold standard in the gaming industry By Jeffrey Silver

evada has the reputation of having the pre-eminent gaming authority in the United States. The Nevada Gaming Control Board (the board) and Nevada Gaming Commission (the commission) are often referred to, and refer to themselves as, the “gold standard” in gaming regulation. While there are many gaming jurisdictions that have a very intense investigative process, Nevada’s self-proclaimed moniker was honestly earned beginning in the years when rooting organized crime affiliates from the gaming industry became a priority in order to stave off federal intervention or debilitating taxation. However, the “tough, but fair” regulatory mantra, first used against applicants who were denied for having “unsuitable antecedents” (the alleged mobsters), continues into the modern era. While the cold-blooded exploits of these colorful characters of the bygone era are nothing more than memorabilia to be viewed as an exposition at the Mob Museum, for former regulators like myself, it seemed quite like a life-or-death situation.

Laying the Groundwork The industry today has become so much more compliant, corporate and mundane, so would it be rational to expect that gaming regulation doesn’t need to be so “tough?” We haven’t seen a Frank “Lefty” Rosenthal-type character seeking reversal of a commission decision for almost 30 years. In those early days, applicants did not easily accept their fate, which resulted in the “testing” of virtually every statute and regulation. It was then that the 9th Circuit Court of Appeals adopted the position that “gaming” was a matter reserved to the states under the 10th Amendment, which ruling was recently referenced in reaching the conclusion that federal prohibitions on sports wagering were an unconstitutional commandeering of state regulation. Most major modern-day complaints against licensees have involved settlements for violations of anti-money laundering regulations and the Federal Corrupt Practices Act (FCPA), which were investigated by the IRS, the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) and the federal Securities and Exchange Commission (SEC). 40

Global Gaming Business JULY 2018

As an example, FinCEN required one casino to return $47 million-plus to the Treasury and also pay a $9 million fine. Thereafter, Nevada tagged on their complaint for “an unsuitable method of operation” costing the licensee an additional $2 million. Under similar circumstances where FinCEN took the lead, another licensee paid the federal government $8 million and then agreed to pay another $1.5 million to Nevada as its “fair share” for state violations. Nevada had ceded primary authority over currency transaction reporting to the federal government in 2007, after the board and commission realized that their exemption from the Bank Secrecy Act meant a tremendous expenditure of funds and personnel in order to be compliant with an evolving concern that had national security implications. Nevertheless, during its era, Nevada did levy a hefty fine of $5 million when the compliance officer at one Las Vegas resort property failed to submit over 15,000 Currency Transaction Reports (CTRs) over a twoyear period. (He got a little behind!) Regardless of their nature, complaints today seem to be uniformly discharged through settlement discussions between gaming counsel and the board. These consensual complaint resolutions usually appear toward the end of the commission agenda and can easily elude press exposure. Make no mistake, the reason we have seen a parade of negotiated settlements is because a complaint filed by the board is a very serious matter. The commission has the discretion to condition, limit, suspend or even revoke a gaming license and may also issue monetary fines of not less than $25,000, or more than $250,000 for each violation (NRS 463.310) and are not generally reviewable by a court unless they are arbitrary and capricious or not supported by any evidence.

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Those Racy Billboards

The commission has the discretion to condition, limit, suspend or even revoke a gaming license and may also issue monetary fines of not less than $25,000, or more than $250,000 for each violation (NRS 463.310) and are not generally reviewable by a court unless they are arbitrary and capricious or not supported by any evidence.

It has been some time since a “contested” complaint hearing was held before the commission. In fact, the last one may have been a matter that I was involved in many years ago, when one particular board member found it to be sufficient grounds for a complaint if a licensee failed to conduct advertising and public relations activities in accordance with “decency, dignity, good taste, honesty and inoffensiveness.” The regulator used his views to begin a crusade against the “edgy” campaigns of a former Hard Rock Hotel owner, thinking it would be a good idea to file a complaint to “regulate” (see “censor”) the advertising content of the hotel’s double-entendre billboards. During the National Finals Rodeo season, the large illuminated sign in front of the hotel displayed a young woman’s naked legs from the thighs down, with only a pair of silk panties dangling around her ankles. The caption read: “Get ready to buck all night!” Another billboard showed a dealer looking admiringly at a scantily clad woman who was sprawled across a blackjack table with cards and chips. The caption read, “There’s always a temptation to cheat!” Never mind that I had advised the client that this could be a problem, which it was, since there had been a progression of other billboards that had also attracted the attention of county officials, such as the one with a topless showgirl holding dice over her breasts, with the caption, “We sell used dice!” In the much-awaited public hearing, Commission Chairman Peter Bernhard, who is also a very astute lawyer, read our brief and quickly dismissed the “free speech” issues from the multi-count complaint. I wondered what might come next, but shortly thereafter, the owner, whose timing was always impeccable, sold the hotel at a large profit just months before the “Great Recession.”

Complete Complaints Although the current disciplinary lineup has nothing quite as “racy” or compelling as my former client’s billboards, recent cases are still pithy, and instructive. Therefore, it might be useful to review some of the complaints settled in the past few years. We will not include routine tax refunds or redeterminations, although there is always some important information to be gleaned from them, as well. It was alleged that a nonrestricted licensee, which had distributed “associated equipment” (not a gaming device, but equipment designed to assist in important ancillary functions of the device, such as the proper reporting of revenue), knew or should have known about a software defect, which in some cases overpaid, and in other situations, underpaid the patrons. The board became aware of the defect, but rather than immediately pulling the system from the casino floor, allowed it to remain on the assurance from the licensee that it would immediately embark upon the software fix and in the meantime put manual procedures in place for the proper payment of

the customers. However, as the board alleged in their complaint, the needed “corrections” took much longer than anticipated and the “manual pay adjustments” occurred only when the error was brought to their attention. There were also other circumstances when the board believed that the licensee was not fully cooperating with the investigation. Without addressing the specific allegations, the respondent settled the complaint by agreeing to a fine of $1.5 million, and was required to place $25,000 in escrow to pay those patrons who were underpaid. Further, the president and chief executive officer had to resign his employment with the company and was prohibited from exercising any further control or authority. A nonrestricted licensee was issued a complaint following an investigation and settlement with a federal agency regarding alleged misconduct occurring in a jurisdiction outside Nevada. After the licensee entered into a non-prosecution agreement with the federal agency, which also included the payment of a substantial fine, Nevada regulators determined that the violation of a federal law was also an “unsuitable method of operation” for the purposes of their Nevada gaming license (Commission Regulation 5.011(8)). While the licensee neither admitted nor denied the basis for the federal action and had agreed to take extensive remedial actions, for that alleged affront, the licensee willingly agreed to pay the commission a $2 million fine.

A complaint was filed against a nonrestricted licensee for allowing a visibly intoxicated patron to continue gambling at the casino and extending complimentary service of intoxicating beverages to a person visibly intoxicated (a violation of Commission Regulation 5.011(2) and (3)). It was alleged that between 11:38 a.m. and 5 p.m., the player was served 11 glasses of red wine. The complaint stated that the patron was “visibly intoxicated… spilling a drink, staggering from left to right, walking with an uneven gait, losing his balance, having trouble handling his cards and lacking the ability to stand straight.” The complaint went on to say that by 5 p.m. the patron was demonstrating signs that he was “extremely intoxicated.” While the casino cut off the patron’s spigot at 5:30 p.m., the patron slammed into a lady playing a slot machine who reported the patron’s condition to casino security. Although security advised the casino to cut off the customer from further drinking, the patron returned at around 9 p.m. after dinner and was then served two additional glasses. The patron lost approximately $13,000 that day. In mitigation, the casino alleged that the patron was a longtime customer, who enjoyed drinking while gambling, whose play on the day in question was “within the normal boundaries and parameters of play.” Nonetheless, the casino agreed to have its employees trained on alcohol awareness and responsible gaming policies and pay a $25,000 fine.

JULY 2018 www.ggbmagazine.com

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Some nonrestricted gaming licensees may not realize that an adopted minimum internal control standard (MICS) or an approved “compliance plan” has the same force and effect as a regulation adopted by the commission. A violation of these agreed-upon procedures can result in a disciplinary complaint, which is what occurred when the casino’s own marker procedures were not followed. While the casino owner disclaimed the allegation that he had instructed or directed any of his employees to ignore the paper trail required by the MICS, nonetheless the licensee agreed to settle the matter by the payment of a $215,000 fine and $35,000 in investigative costs.

Lest anyone think that disciplinary actions are reserved for the larger nonrestricted licensees, in this fifth example, a restricted licensee failed to file its key employee application within the 60 days as required by its license condition. The location also neglected to pay certain fees and taxes totaling $3,750, when due. The respondent admitted to the allegations and agreed to settle the case upon the payment of $6,000.

The licensed owner of 12 gas stations, each with a convenience store containing seven slot machines, entered into an asset sale with a buyer, reserving for itself the right to continue all store operations, including gaming, by paying the purchaser $1 per month in leaseback rent. The law requires that in order to operate slot machines at a restricted license location (15 or fewer gaming devices), the recipient of gaming revenue has to be either the “operator of the primary business” or a licensed slot machine operator. Leasing the entire operating business back to the seller would have been sufficient to keep the gaming devices operating, were it not for the fact that the seller then entered into a management agreement with the buyer making him its “key employee” to operate the entire business, except the slots. The payment to the key employee was 100 percent of the non-gaming revenue. In essence, the buyer became the operator of the primary business and the seller, who was not a licensed slot machine operator, continued to operate the slot machines without possessing a slot machine operator’s license. The board thought this was a subterfuge and filed a complaint. To correct the “oversight,” the seller immediately applied for a Nonrestricted Slot Operator’s license. However, during the interim period of the investigation, the machines were turned off and the seller was required to pay a $150,000 fine.

The board requires that transfers of interest, even in smaller restricted license locations, must have the prior approval of the board and commission (Regulations 8.020 and 15A.060), even if the transfer is to a currently licensed co-owner. That would be true even where a capital call which was ignored by one equity holder caused dilution of that person’s equity and caused a proportional increase in the ownership percentages of the other participating owners.

Global Gaming Business JULY 2018

Additionally, when a portion of an owner’s equity is sold to a co-owner, the consideration paid by the buyer must be held in escrow until the requisite approvals had been obtained (Regulation 8.050). A small tavern in rural Nevada failed to heed those regulations and agreed to pay a $15,000 fine. Finally, a local Las Vegas tavern, in an area of town where crime seemed rampant, was alleged to be a hangout for gang members. According to the complaint, there had been six gang-related shooting events either inside or directly outside the location. In total, it was alleged that between 2009 and 2015, the Las Vegas Metropolitan Police Department had 144 calls for service, 97 of which (57 percent) were labeled as “violent.” The regulations require that a licensee must exercise discretion and sound judgment to prevent incidents which might reflect on the repute of the state and the gaming industry and a license may be revoked if the location is “too difficult to police.” At the time of the shootings, the business did not have working surveillance equipment (but “was in the process of installing one”). In the latest episode, the complaint alleged there were four different shooters in various locations firing 60-70 rounds of ammunition. As the people were leaving, the one exterior camera that was working showed an unknown person, believed to be an employee, using a broom and dust pan to sweep up the parking lot outside the location. Approximately 25 mostly spent shell casings and several live rounds were later discovered near a dumpster to the rear of the business. It was also noted that 911 was not called, nor did anyone document the incident. The county issued a 90-day suspension of their business license. However, the commission thought that penalty to be too lenient and required the complete surrender of the respondent’s gaming license. The complaint actions for prior years are just as instructive and compelling. Suffice it to say, the answer to the rhetorical title to this piece, is that regulators in Nevada are “tough enough!”

Jeff Silver is Of Counsel with the Las Vegas office of Dickinson Wright. His practice focuses on every aspect of gaming, liquor licensing and regulatory law, as well as planning and zoning matters, contractor licensing and transportation law. He is a former Clark County chief deputy district attorney and was the resident Las Vegas member of the Nevada State Gaming Control Board during the state’s tumultuous period of developing regulatory oversight.

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Super Systems By Dave Bontempo

How CMS is continuing to evolve and serve the needs of operators

hat’s in your casino management system? No vendor can fill every big-property software need, prompting the CMS to collect information from many operational systems. This pragmatic view is heightened by operators acquiring properties and choosing not to replace important player-tracking systems. It’s a wise approach, especially when the list of potential applications could be infinite, and expensive. There’s nothing wrong with limits to this daily world of processing and transaction recording. Yet the rise of specialization, real-time bonusing and the mobile age creates a new a competition grid. Suppliers try to exceed an already-extensive basic-application package: from slot monitoring/accounting and ticketing, to cashless gaming, e-games platforms and RFID table monitoring, from promotional kiosks, surveillance and security to third-party check cashing, internet gaming and data warehousing. If you can’t beat the system, expand it. This is a strong opportunity for the industry’s largest players. They have the global reach and massive resources to help casinos think bigger, even on small details.

The Synkros Saga Konami Gaming, the Las Vegas-based division of Tokyo-based Konami Holdings Corporation, continues to thrive as a leading designer and manufacturer of slot machines and casino management systems. The company’s core technology supports nearly 400 venues, and it showcases Synkros, one of the industry’s leading player tracking systems. “A robust CMS should equip teams with new possibilities, not limit 44

Global Gaming Business JULY 2018

them to a singular approach,” says Steve Walther, Komani’s senior director of marketing and product management. “It should drive more accurate data and analysis, even beyond what’s expected. That’s what ultimately pushes the industry forward. As markets across North America and abroad have become increasingly competitive, systems technology has become an important factor in advancing the casino’s positioning. The player tracking data, analytics, targeting and technical functionality needed to support daily operations is more relevant than ever.” Walther says not all casino management systems can analyze gaming and non-gaming spend in a single ecosystem, thus preventing many operators from implementing a cohesive property-wide strategy. Synkros, with its comprehensive real-time data, will help them capitalize on opportunities, he adds. Synkros fashions some timely innovations. True-Time Windowing brings up the player loyalty information directly on the slot game screen. Tap-On/Tap-Off is a cardless player loyalty solution to replace

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True-Time Windowing

a traditional player’s card by allowing players to authenticate their loyalty account with other methods like a mobile phone, room key, fob, etc. Tap On/Tap Off uses nearfield communication to let players authenticate their loyalty account at the EGM. It is embedded within a traditional card reader, to accommodate new authentication methods as well as traditional player loyalty cards. “This multi-channel solution empowers operators to reach more players using technology that’s already interlaced through their daily life and the guest experience,” Walther says. “Instead of being tethered to a traditional player’s card each time they visit the casino or waiting in line for reprint when their loyalty card is misplaced, players can get right to the game through a number of secure access methods right at the device. For mobile cardless connection, players can simply tap their personal smartphone device at the zone of the card reader bezel.” The card reader changes color to indicate blue for inactive/uncarded connection, green for successful active connection, and red for misread/failed connection. Once players tap-on a successful connection to their account, it remains active until they tap-off to disconnect or the session times out from inactivity, similar to a traditional player’s card. “There is a high level of anticipation for Synkros’ Tap-On/Tap-Off solution,” says Walther. “Many of the casino operators we work with see high levels of mobile adoption among their core player demographic, and they recognize where other industries are phasing out traditional loyalty cards for branded apps and mobile wallets. Because Tap-On/Tap-Off is a hybrid solution that supports several different methods of authentication—including personal smartphones and traditional player’s cards—it gives players the luxury of adopting new mobile conveniences at their own pace and eases the transition. That is especially appealing for operators.” True-Time Windowing is another significant offering. This technology allows players to access account and property information directly on any video slot machine. It also enables synchronized and on-demand tournament bonusing, with True-Time Tournaments, so operators can reward players with on-demand tournament bonus games and/or simultaneous tournament events. It deploys a full canvas of possibilities directly onto the screen of most video slot machines without interrupting game play. These items include loyalty account management, custom offers, notifications, system-delivered tournaments and floor-wide bonusing. “Konami’s next-generation True-Time Windowing contains a variety of new enhancements designed to reach the widest possible audience with top conveniences that players want, including HD display, portrait-screen

compatibility, drink ordering and web services,” Walther says. “With these new developments, properties have the freedom to customize windowing displays with branded art and video content to highlight any number of property initiatives—upcoming events, room specials, restaurant happy hours, player’s club promotions, etc.” The launch of web services allows properties to feature HTML5-based tools they offer—such as an online box office, hotel bookings and restaurant reservations—to facilitate additional sales opportunities, he adds. Synkros has other significant elements. Offers Management gives operators the tools to drive targeted player behaviors, while rewarding players in a life cycle of customer engagement. In terms of analytics, Synkros Dashboards is expanding the convenience, accuracy, speed and usability of enterprise-wide data with a fast, interactive new dashboard interface. Among the biggest challenges faced with casino analytics are slow integrations, antiquated flat reports and inconvenient access, Walther asserts. Looking forward, he sees continued growth in connected integrations with non-gaming features, touchpoints and amenities.

Delivering the Advantage International Game Technology found another winner with Advantage, its flagship casino management system. The scalable solution features a modular design, making it highly configurable for casino operators of all sizes. This is the company’s most widely deployed casino management system, and is the CMS of choice for prominent new casinos like Resorts World Catskills, MGM Cotai and Wynn Palace in Macau, officials say. The company lists bonusing, patron management, mobile IGT Cardless Connect apps, table management and EZ Pay as major facets of the Advantage umbrella. “IGT is committed to further developing Advantage to meet the evolving needs of our customers and their players, while also staying true to the attributes that have fueled the product’s success for many years,” says Eric Lancaster, IGT director of systems product management. “We believe continued development and investment in Advantage is fundamental to its success and ability to integrate with Tournament Manager and new mobile solutions like Cardless Connect and PlaySpot. “We have recently made significant advancements in our systems bonusing portfolio. By pairing IGT Advantage with Service Window and IGT bonusing apps, our customers are having great success in differentiating their entertainment experiences.” Lancaster says IGT Advantage helps casinos of all sizes manage their patron JULY 2018 www.ggbmagazine.com

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Everi-thing to Everybody Jackpot Xpress is a solution that works with all systems

t’s always interesting to watch big names coordinate with one another. Everi Holdings has rapidly ascended in its payment, games and intelligence areas. Its most recent NIGA presentation involved management systems to include including innovative gaming machines that power the casino floor. The company also touts casino operational and management systems with comprehensive, end-to-end payments solutions, critical intelligence offerings, and gaming operations efficiency technology. Yet the company also plays well with others in the CMS space. Its Jackpot Xpress solution is supported on the Scientific Games SDS 12, IGT Advantage, Konami Synkros and Aristocrat’s Oasis systems. It also is integrated with system processing functions for Scientific Games and Konami. The synergy gives Everi an edge, turning compliance into real-time efficiency and blending the world of mobile apps and kiosks. As mobile devices, kiosks and gaming devices become one integrated family, security and compliance gain more stature. These innovations will be touted on the security side for the theft they prevent and in the revenue realm for unclogging casino-floor lines to enhance continuous play. That’s the goal of Jackpot Xpress. This application alerts slot personnel on the casino floor when a jackpot occurs. The application promptly alerts floor staff to new jackpots and provides the winner’s location and loyalty tier level. That allows them to process it in the slot management system, gather and verify the winner’s information, specify tax withholdings and distribution types, and generate the necessary Internal Revenue Service forms for patron signature. The easy-to-use interface is customizable to meet various casino business rules and processes. When Jackpot Xpress is used with Everi’s

Global Gaming Business JULY 2018

Cage Notification module, the selling of cage windowpaid jackpots and batches to the property’s bank or vault is automated, eliminating paper and expediting the audit process. Jackpot Xpress can run from a mobile device, and is fully integrated with the Everi JackpotXchange kiosks. When Jackpot Xpress is implemented using both the mobile application and JackpotXchange kiosks, properties are able to perform additional functions such as pouch pay and cageless cash retrievals. When using the mobile application, additional, optional peripherals like mag-stripe and RFID readers may also be supported to further reduce time and effort of floor, cage, audit and compliance personnel. Using Jackpot Xpress may completely eliminate jackpot paperwork produced through other software, Everi officials say. Speaking of Aristocrat, the company announced that its Oasis 360 system has become the casino management system of choice for Sunland Park Racetrack & Casino’s 700 slot and video poker games. Sunland Park will benefit from Oasis 360’s player-centric modules, including Oasis Loyalty, Oasis One Link, Player Max Mobile and nLive, with Player Portal. With this most recent installation, Aristocrat’s Oasis 360 system is now installed at 80 percent of New Mexico’s racetrack locations, officials say. Sunland Park, in concert with the installation of the Oasis 360 system, added 20 new high-performing Aristocrat slot machines. Sunland Park’s Executive Gaming Director Ahmad Mughni says. “Bringing the Oasis 360 system online is a significant step forward in our customer service initiatives. The combination of loyalty products and communication tools will empower us to provide our customers with the most meaningful and entertaining gaming experience possible,” he adds. —Dave Bontempo

loyalty programs and casino-floor performance. Its most powerful selling points include scalability, a robust bonusing application suite, and integration with solutions like Mobile Host, Mobile Responder and Mobile Notifier. Advantage’s modular design enables users to grow their system’s infrastructure as their business needs mature, and to add and replace components as needs arise. The upgrades have unfolded in a timely manner. Lancaster says the demands of the business continue to grow. “The biggest trend that we’re seeing from our customers is the demand for technology that enables patrons to move freely throughout the casino while earning and applying loyalty rewards for gaming and non-gaming activities,” he says. “There also is a significant market opportunity for mobile solutions like Cardless Connect and PlaySpot that enhance landbased casinos. At one point in time, the systems dialogue was keenly centered on the operator benefits of the technology. Today, the dialogue has matured to include topics such as the player benefits, floor differentiation, mobile capabilities, player rewards, customer service, time on device and more.” A growing industry consensus views mobile as the fastest-growing segment, and a natural beneficiary of sophisticated casino management systems. Lancaster acknowledges its rising influence. “It certainly adds significantly to the value proposition,” he says. “Combining IGT mobile solutions with IGT Advantage is one way the company is enabling scalability in casino management systems in meaningful ways. We have provided operators with enhanced operations capabilities, and players with faster, easier access to entertainment and amenities with our mobile systems solutions. We’re excited to build on the momentum that we have established with mobile solutions such as Cardless Connect, PlaySpot and Mobile Host.” CMS components often address the market’s perceived future needs. Perhaps nothing hits that

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sweet spot like PlaySpot, a turnkey mobile sports wagering solution. Charles Cohen, IGT’s vice president of mobile, PlaySpot and North American sports betting, told GGB last month that sports-betting activity resembled a dormant volcano—that there was a storm of activity waiting to erupt below the surface. It has begun. The American industry faced a dramatic “flip the switch” scenario when the Supreme Court struck down the Professional and Amateur Sports Protection Act, meaning that each state can decide whether to allow residents to bet on sports. Casinos can’t assemble legalized sports facilitation quickly enough. PlaySpot will perform a role in that. If an operator has an existing mobile convenience app, the sports betting functionality can be incorporated into that app, or IGT will collaborate with the customer to create an independent portal.

The Big i-4 Picture Scientific Games touts its industry-leading CMS in general, and iView4 in particular, regarding a major deal it closed earlier this year. The company announced it will install a comprehensive suite of system products and devices at the Oneida Indian Nation’s Turning Stone Casino in Verona, New York, as well as its Yellow Brick Road Casino, Point Place Casino, and several SavOn convenience stores. Scientific Games’ casino management systems will manage all 2,921 slot games across all of the Oneida Nation’s gaming properties in upstate New York. The deal not only covered a substantial number of devices, and multiple properties, but revealed the flexibility of a strong CMS. The management systems include SDS slot management, TableView real-time and CMP player-tracking system, to help all three properties evaluate player activity. Marketing solutions include the Elite Bonusing Suite, a group of applications enabling the gaming properties to reward players at the point of play via Scientific Games’ innovative iView4 and iView4 Display Manager. “The iView4 paves the way for true cross-channel content,” says Ted Keenan, vice president of product management, systems, for Scientific Games. “Using web-based content, casino marketers can build content that runs on iView, kiosk, mobile or any other device that supports HTML5. The same content on iView that enables access to player accounts, mobile wallets, beverage ordering and bonus games will be available for kiosks and mobile devices alike. Players will have a consistent experience on any device. The Web Content Management System is designed first to enable casino operators to build and publish content for iView4. The same system will enable content to be published to kiosks and mobile devices next.” What about iView4? This new, state-of-the-art system boasts cuttingedge technology, as well industry-first features that make it best-in-class, company officials say. The innovations fit under the umbrella of faster, bigger and better, they contend. Faster: the iView4 has an AMD quad-core processor and Radeon graphics processor. Bigger: It has more system memory and 10 times more media storage on a 64 GB solid-state drive. Better: It has a modern Windows operating system that is upgradeable, and sup-

Faster: the iView4 has an AMD quad-core processor and Radeon graphics processor. Bigger: It has more system memory and 10 times more media storage on a 64 GB solid-state drive. Better: It has a modern Windows operating system that is upgradeable, and supports Microsoft Fast Bott, HTML5 and other modern features. ports Microsoft Fast Bott, HTML5 and other modern features. Keenan considers the iView fleet a window to the future. “Casino operators are increasingly looking for the player convenience and loyalty aspects available with mobile devices,” he says. “The methods casino players use to fund their gaming experiences are beginning to feel cumbersome. In other industries including retail, grocery and banking, electronic wallets have made it more convenient and very secure for consumers to access their funds. Electronic wallets are likely to change the funding experience in a casino similar to the way ATMs changed the experience years ago. A good system will work seamlessly with an electronic wallet for players to manage funds and transfer them to and from gaming positions including slots, tables and more.” Keenan also acknowledges the industry push for strong analytics. “Casino operators with superior analytics solutions will be able to make offers and communicate to their players more effectively,” he says. “They’ll be able to better plan and balance their product mix. They’ll be able to marry superior player experiences with increased profitability. All core systems at a casino need to increasingly integrate with other data solutions for the best analytics engines to produce meaningful predictions, suggestions, recommendations and offers.” Casino consolidation plays into the CMS dynamic. One view of the player and a common experience across multiple properties is becoming a common requirement, Keenan asserts. It’s an exciting time in this sector. Lucrative gains await those who can adapt quickly and obtain systems with a number of future generations built in. What’s in your CMS? Hopefully, all you’ll ever need.

JULY 2018 www.ggbmagazine.com

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EMERGING LEADERS Persistence Pays

Protecting the Enterprise

Howard Copen Corporate Director of Revenue Management, Boyd Gaming

Raquel Burton Vice President of Compliance, Four Winds Casinos aquel Burton didn’t set out to go into the gaming industry as a lawyer. The cards just fell that way. “I guess you could say I’m one of the many who have ‘fallen into’ the industry,” says the 2013 graduate of Valparaiso Law School. Burton serves as vice president of compliance for Four Winds Casinos, where she oversees gaming, liquor, banking and other regulations, often in conjunction with the Pokagon Band Gaming Commission. Burton takes a proactive approach in the hopes of avoiding remedial action. “We have the constant task of balancing the interests of the regulations with the interests of running an effective organization,” she says. “But regulations help protect the company’s assets, reputation and integrity. By managing compliance on the front end, the company can focus less on ‘cleaning up’ and/or ‘paying up’ noncompliance, and focus on successful operations.” The South Bend native and resident first worked for Four Winds after her graduation from Ball State University in 2009, working in legal/compliance. Burton credits her predecessor at Four Winds, Laurie Reyher, with showing her the way. “Anyone who is a compliance professional knows that there is a certain ebb and flow that must be mastered. Laurie was a woman who, despite challenges, laughed through them and took the high road. The patience and careful approach needed to manage compliance and the people you indirectly manage were just a couple of the things Laurie taught me,” says Burton, a mother of two who spends down time enjoying nature. While iGaming could dominate the horizon in the future, especially with the expected wave of sports betting, don’t count brick-and-mortar casinos out, Burton says. “There is something to be said about the physical getaway and non-gaming amenities that drive many guests into the casino facilities.” Four Winds South Bend is the latest expansion, but likely not the last, Burton says. The Four Winds management team and Pokagon

Global Gaming Business JULY 2018

s the corporate director of revenue management at Boyd Gaming, Howard Copen oversees the yield management for one of the fastest-growing companies in gaming. He also plays a major role in managing Boyd’s third-party hotel relationships and hotel-related innovative technologies, while helping manage and expand the operator’s portfolio of 30 casinos and 20 hotels. He enjoys the diversity of his properties, spanning Las Vegas and regional markets. Copen was destined for the gaming world from a very young age. Although his parents’ careers were in medicine, the young Floridian was enthralled with his family’s trips to the local horse track, where he learned early on how to handicap the races. He attended the University of Wisconsin-Madison for a year before returning home to pursue his passion for the industry by enrolling in Florida State University’s hospitality program. Upon graduation, his persistence in calling a casino in an attempt to enter a management training program led him to be referred to and accepted into Pinnacle Entertainment’s Executive Development Program. In his time at Pinnacle, Copen worked at Belterra Resort in southern Indiana and at L’Auberge du Lac in Lake Charles, Louisiana. In Lake Charles, the ambitious Copen moved quickly from centralizing housekeeping inventory to overseeing all of housekeeping. It was there that he started independently forecasting hotel occupancy because he observed mismatches between actual occupancies and housekeeping staffing levels. “It didn’t feel fair to cut people that we had scheduled,” he said, “and that’s really how I got started in revenue management.” After earning his MBA, Copen went to Atlantic City to work for Dennis Gomes at Resorts. There, he managed labor, special projects and hotel yield. Following Gomes’ passing in 2012, Copen stayed at Resorts through the first year and a half of the Mohegan Sun partnership, before packing his bags for Las Vegas to become director of hospitality innovation at Palms. It is apparent that innovation is one of the most exciting things Copen works on, noting proudly that the Las Vegas drive-in market responds well to 24-hour checkout, which he implemented at Palms. Having worked closely with revenue management

“There is something to be said about the physical getaway and non-gaming amenities that drive many guests into the casino facilities.” Band’s elected leaders think long-term growth. “In five years, I expect Four Winds will have adapted seamlessly to the changes facing the industry and will have continued to expand,” she says. As for Burton, she doesn’t set many longterm goals. “I am hard on myself and would never give myself long to accomplish something,” she says. “I can say that I hope to be doing much more to improve society as a whole, which is the reason I entered the legal field initially. “Cooking good food and entertaining people isn’t quite relaxing, but it’s a sanctuary for me,” adds Burton, who used to cater small events and make cakes for any occasion. To newcomers with an interest in the industry, Burton says take time to learn the evolution and history. Understanding what came before makes it easier to understand today. “Don’t expect to learn it all overnight, and realize that once you think you’ve learned it all, there will be more to learn. Be flexible. Our industry is ever-changing and fast-paced. Your plans today will change a few times before you’re able to put them into action.” — William Sokolic

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Funding Solutions Jennifer Rushton Vice President of Business Development, UP ennifer Rushton understands what it takes to make a success in gaming, so her role with UP, which oversees lottery and gaming development initiatives in Sault Ste. Marie in Ontario, is predictive. The organization works with a number of companies such as OLG, Canadian Bank Note, Pollard Banknote and Gateway Casinos & Entertainment. Municipal and provincial governments and the private sector fund UP. “There is no financial requirement by the companies we assist,” says Rushton, UP’s vice president of business development. “Businesses think of us as facilitators and partners, rather than economic development agents. We are focused on delivering better performance for our clients.” Rushton’s department supports growth of existing partners, introduces new companies to opportunities and collaborates with Innovation and Marketing & Communications to develop additional strategies. “Our mandate is to grow the lottery and gaming partnerships in Sault Ste. Marie, creating new jobs, stimulating and diversifying the economy.” Growing up outside Toronto, Rushton started in the industry while at York University. She worked in customer service and sales and marketing on the online gaming side in the early 2000s. In 2006, she joined the Canadian sales office for table-game supplier TCSJohnHuxley. During her career rise, Rushton got to work alongside role models who strengthened her passion for the industry and developed the principles that guide her today. Take TCSJohnHuxley’s Canadian general manager, Brad Broderick. “With his strong business acumen and comprehensive knowledge of the casino industry, Brad demonstrated the significance of relationships,” says Rushton, who spends a lot of free time watching her four children play hockey. Rick Juleen, Jr., vice president of business development at Young Electric Sign Company, inspired Rushton’s tenacity, with the competitivecollaborative environment he created. “The spirit of that environment fuels me to always push a little harder.” As for the future, Rushton sees the lottery and gaming sector expanding to include eSports and sports betting. “We will be home to significant brands in each of those gaming verticals.” Data will continue to drive decision-making,

software company Duetto throughout his career, and with Palms going through some transition at the time, Copen was quickly hired by Duetto to oversee its global gaming accounts, a role in which he served from 2014 to 2017. On his move to Boyd Gaming in September 2017, Copen says, “I loved what I was doing at Duetto, helping clients see the value in using their data to better forecast hotel occupancy and adjust pricing. But I was excited by the prospect of getting back to operations, and Matt (Ryan, CMO at Boyd Gaming) is really forward-thinking and analyticsdriven. He’s technical, and I knew I could learn a lot from working with him. Plus, it’s an exciting time to be a part of Boyd Gaming’s growth.” Asked about his mentors, Copen pauses, and gives credit to many people he’s worked with throughout his career. “I think there are really three that had a profound effect on my career,” he said. “Dennis Gomes was my marketing mentor.” Their time together at Resorts was incredibly formative for Copen, and he credits much of his success to what he learned there. “And Dan Lee,” with whom Copen worked at Palms, “was definitely my finance mentor.” Lee is the former CEO at Pinnacle and now heads up Full House Resorts. Noting that they’ve only worked together a short time, Copen says that his third mentor is Ryan. “Matt is really data-driven, and I’m learning a ton by seeing how he applies data and analytics to all areas of the business.” Asked about his life away from work, Copen says he splits time between golf and spending time with his family—he has a brother nearby in California. Of course, he hasn’t left his love of horse racing behind either. Asked if he spends much time down at DelMar, Copen laughs, “Sometimes, sometimes. Probably Santa Anita a little more often.” —Bryan Wyman, The Innovation Group

“Our mandate is to grow the lottery and gaming partnerships in Sault Ste. Marie, creating new jobs, stimulating and diversifying the economy.” she says. With stronger data comes a more responsive player experience. “Operators will eventually know guests better than they know themselves. Apps, sensors and analytics that engage guests at multiple points enable limitless opportunities,” says Rushton, who moved to Sault Ste. Marie in 2015, which provided more time with family, cooking, baking and other activities. Rushton also sees women enjoying more leadership opportunities as companies push demand for a more inclusive place. “The myopic lens of the ‘golden boys club’ of gaming isn’t viable anymore,” she says. Five years down the road, Rushton expects to have a leadership role in the industry. “I will continue to support women’s advancement through advocacy groups and mentorship roles and will champion the success of the lottery and gaming partnerships in Sault Ste. Marie.” Career progression is a journey. Take the time to enjoy the journey, she urges newbies. “Don’t rush to the next level of your career at the risk of missing out on the depth of knowledge that your current role affords you or the possibility of jeopardizing the support system that has helped you along the way.” —William Sokolic JULY 2018 www.ggbmagazine.com

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NEW GAME REVIEW by Frank Legato

Alfred Hitchcock Presents International Game Technology

hile IGT’s latest themed game on the premium CrystalCurve Ultra cabinet carries the title of legendary director Alfred Hitchcock’s iconic TV series from the late 1950s and early 1960s—the familiar theme song, Gounod’s “Funeral March of a Marionette,” can be heard during spins; there are stills and video of Hitchcock from the set of the mystery/horror series—the game’s bonus features draw on the director’s most famous motion pictures. The base game is a five-reel, 40-line video slot with a 75-credit cost to cover, featuring frequent base-game features. The bonus features reference the Hitchcock films Psycho, Vertigo and The Birds. Free games are triggered when two bonus symbols land on reels one and three and either the Psycho, Vertigo, or The Birds theme symbol appears on reel five. The Director’s Cut Wheel Bonus is triggered randomly during the base game and can award credits, bonuses, or “Hitchcock’s Jackpot.”

Manufacturer: International Game Technology Platform: CrystalCurve Ultra Format: Five-reel, 40-line video slot Denomination: .01 Max Bet: 375 or 600 (operator configurable) Top Award: $5,000 w/ 600 credit max bet; $2,500 w/ 375 credit max bet Hit Frequency: Approximately 50% Theoretical Hold: 4%-14.1%

999.9 Gold Wheel Ultra Stack Lion Gold; Dragon Gold Aruze Gaming America

hese companion games reside on Aruze’s Cube-X Ultimate cabinet, which adds a physical wheel to the premium Cube-X video format, which players can spin for credit amounts or one of four progressive jackpots. 999.9 Gold Wheel Ultra Stack Lion Gold (pictured) and 999.9 Gold Wheel Ultra Stack Dragon Gold are both five-reel, 50-line video slots. Players can choose to add Gold Reels, which unlock progressives and add one solid reel of wilds, by increasing their bet. Max bet unlocks all progressives and adds the possibility of a 2X wild multiplier for the wild reel. Betting up also makes it possible to trigger the mechanical “Gold Wheel,” which awards free games played on special reels with a greater number of the top-paying symbol. There is a free-spin bonus triggered by scattered

Global Gaming Business JULY 2018

bonus symbols on the three middle reels. This triggers eight free games, and the feature can be retriggered within the free games. Three scattered SPIN symbols on the middle reels trigger the 999.9 Gold Wheel Feature. The physical wheel will spin and award eight, 10, 15, 20 or 50 free games, or award a spin on the Jackpot Wheel. If the Jackpot slice lands on the physical wheel, the top LCD monitor displays a large Jackpot Wheel—it contains only the four progressive jackpots as slices. The jackpots levels change according to the amount bet. At max bet, the progressives reset at $10, $50, $500 and $5,000. Manufacturer: Aruze Gaming America Platform: Cube-X Ultimate Format: Five-reel, 50-line video slot Denomination: .01 (multi-denomination available) Max Bet: 250, 500, 750, 1,000, 1,500, 2,000 Top Award: Progressive; $5,000 reset Hit Frequency: Approximately 50% Theoretical Hold: 3.6%-12.42%

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Willie Nelson Everi Holdings

ne of the first major licensed brands by Everi Holdings celebrates the life and music of country legend Willie Nelson. The company has launched two initial games in the series, called “Shotgun Willie” and “Whiskey River,” on its Player Classic traditional mechanical stepper series. The base games are mechanical three-reel, nine-line steppers, in quarter and dollar denominations. The quarter version carries an 18-credit max bet; the dollar version, nine credits. The games feature a five-level progressive jackpot, with the top prize available in both local-area progressive (LAP) and wide-area progressive (WAP) versions. The top progressive resets at $10,000 (LAP) and $100,000 (WAP) in the quarter versions. In the dollar version, the top prizes reset at $100,000 (LAP) and $1 million (WAP). The two initial titles are being shipped together as a leased product, and both link to the same progressive jackpot. The base games feature classic reel-spinning features, with multiplying wild symbols in both. In Shotgun Willie, certain bar and “7” symbols display a 2X, 3X, 4X or 5X multiplier, applied in winning combinations. Two or

more multipliers on a payline multiply together, for a potential maximum of 40X on a single win. Whiskey River features a straight multiplying wild symbol. Whiskey River symbols are wild, and double the pay in a winning combination. Two wild symbols in a win multiply the payout by four. Three title symbols in Whiskey River or Shotgun Willie pay the top line jackpot or, if landing on the ninth payline, return the top progressive jackpot. The simple, traditional game features are backed by audio of Nelson’s biggest hit songs. Manufacturer: Everi Holdings Platform: Player Classic Format: Three-reel, nine-line stepper slot Denomination: .25, 1.00 Max Bet: 9, 18 Top Award: Progressive; resets— $10,000, $100,000 (LAP) $100,000, $1 million (WAP) Hit Frequency: 28%-34.27% Theoretical Hold: 6.55%-14.59%

Hot Shot Inferno Scientific Games

his latest iteration of the long-popular Bally Hot Shots theme places the familiar “mini-game” bonus in a 50-line video slot on the Alpha Pro Wave cabinet, including a digital bonus

wheel. Like other games in the series, the central feature is a group of “game-in-game” symbols that are miniature versions of the play areas of several classic Bally reel-spinning slots—in this case, Triple Blazing 7s, Triple Blazing 7s Diamond Line, Double Jackpot Triple Blazing 7s, Triple Jackpot Triple Blazing 7s, and Triple Blazing 7s 7x Pay. When three or more like game symbols land on a payline, the miniature reels spin once for each symbol, with winning combinations accumulating the bonus amount. This newest version of the game combines this feature with “Golden Game-in-Game Enhancements.” When one or more of these symbols land on an active payline, the player spins the digital “Enhancement Wheel” to land on free spins, extra games, “Frenzy Games,” “Spin ‘Til You Win” or the Jackpot Wheel. Frenzy Games stack the Golden Game-in-Game symbols up

to seven high for more chances to win. Spin ‘Til You Win triggers continuous spins until a winning combination is achieved. The Jackpot Wheel spins once to award one of the five progressive jackpots, the top prize resetting at 4,000 times the denomination, times the total bet. In the penny version of the game, that’s $40,000. Manufacturer: Scientific Games Platform: Alpha Pro Wave Format: Five-reel, 50-line video slot Denomination: .01-1,000.00 Max Bet: 400 Top Award: Progressive; reset at 4,000 times denomination times max bet Hit Frequency: 55% Theoretical Hold: 3.97%-14.57%

JULY 2018 www.ggbmagazine.com

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TABLE GAMES

Just Say No When doing nothing might be the right decision

By Roger Snow

n a doubleheader against the Chicago White Sox in June 1976, Toby Harrah of the Texas Rangers did something that had never been done before and has never been done since. And it may never be done again. He did nothing. Harrah played 18 innings in the field that afternoon—at shortstop, no less—without a ball being hit or thrown his way. No grounders. No pop-ups. No liners. There was no need for Harrah to even tinker with his glove. Guinness Book of World Records memorialized Harrah’s non-accomplishment as the “Do Nothing Record.” It was right there, next to a woman with fingernails so long she could play jai alai with them, and twin brothers so heavy they could crush the suspension on a motorcycle just by straddling it. And, judging from the picture accompanying that entry, it looks like they just might have. In baseball—on defense, anyway—you have to wait, chew your chaw, scratch your undercarriage, and wait for the ball to find you. You can’t force the action. But in business you can. Happens all the time. Companies start new projects, they find acquisition targets. They hire and fire, invest and divest, synergize and strategize. But they rarely do nothing. Though maybe they should. At least occasionally. Steve Jobs, the Oscar Wilde of modern industry when it came to quotable quotes, once said about his time at Apple: “I’m as proud of the things we didn’t do as the things we did.” As proud. Think about that. As proud as he was of revolutionizing the way music is commercialized, as proud as he was of the iPod and the iPad, as proud as he was of transforming the way people interact with machines and each other, he was as proud of those roads untaken or ultimately abandoned. Here’s why. Time, money and energy being finite, there are only so many things you can do. Or at least do well. The corollary being you can indeed pursue every opportunity, every initiative, every balloonbubble thought that pops into your head, but it’s

Global Gaming Business JULY 2018

more likely than not you will end up wasting your time, burning your money, and squandering your energy. How to undermine such overload? Just. Say. No. In business, you have three cracks at this: in the beginning, in the middle, and in the end. It’s just like poker. And, as in poker, the decision to dump gets harder—psychologically and mathematically—the further along you are. Pot odds creep into the mix. So does stubbornness. But laying down is often the best move. Knowing when to do so, however, depends on which stage of the decision process you find yourself, and it all starts with the...

Early No In the movie Casino, there’s a placard behind Robert DeNiro’s desk that has two words on it. The first, written in the itty-bittiest, teeny-tiniest font, is “YES,” and the other, spelled out in letters that in comparison look like sequoia trees, is “NO.” But with all due respect to DeNiro, aka Ace Rothstein, aka Lefty Rosenthal, those proportions are incorrect. In fact, in this, the opening phase of decision-making, you should say yes a lot more than you say no. Unless the idea is so preposterous (the car periscope, the XFL, guaranteed-play video poker) that it can be dismissed out of hand, don’t. Give it a think. Do a little research. See if it has potential, or if it has potential for potential under a different embodiment. In other words, instead of finding 100 reasons why something won’t work, find one reason why it can, because the real crucible is coming next with the…

Middle No Just as the default decision in the early going was “yes,” the reflex here should be “no.” As in “hell no.” Because you are now past conception, past contemplation, past free or nearly free perusal of the idea, and are about to establish a budget and a timetable to make this thing—whatever this thing is—a reality. Speak now or forever hold your peace, as

they say. As a general rule of thumb, the same percentage of ideas that make it though the first stage should be killed at this stage. It just takes discipline. If you can’t construct a beyond-reasonable-doubt argument for proceeding with the project, one backed by solid financial modeling, then abort. Because if you don’t, you will end up facing the toughest no of all, the . . .

Late No You’ve spent months, maybe years, on this project, getting it ready for the marketplace. You’ve spent financial and political capital. You’ve beaten back the naysayers and coaxed those on the fence over to your side. But there’s a rub to all this. Inherent in any endeavor with a long gestation period is the possibility—more so the likelihood—the world will have changed by the time it’s ready. Take the banana. Crisp and ripe and yellow with a hint of green. But what if you waited two years to eat it? Yuck. It will come out the same way it went in, and twice as fast. The problem is that, by this point, you’re pot-committed. In for a pound, what’s another penny? Which explains why the late-stage no almost always yields to the crying-call yes. Which in turn explains New Coke, HarleyDavidson perfume, and the Pontiac Aztec. (Damn, that whip was fugly.) And unless launching the product or service will cause irreparable harm to your company or your career, you might as well take a shot. Who knows, maybe your pessimistic premonitions were exaggerated, or, at the very least, maybe you will be able to dig through the wreckage and find something salvageable for the future. Don’t laugh. That’s how Ultimate Texas Hold ‘em came to be. But hey, as foyer said of the penthouse, that’s a whole other story altogether. Roger Snow is a senior vice president with Scientific Games. The views and opinions expressed in this article are those of the author and do not necessarily reflect the views and opinions of Scientific Games Corporation or its affiliates.

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CUTTING EDGE by Frank Legato

Mobile and Ready Product: LMS 7.4 Lodging Management System Manufacturer: Agilysys

to the expedited mobile check-in desk to pick up their room key.

or resorts and hotels that want to grow their bottom line without adding significant cost, Agilysys LMS (Lodging Management System) helps drive as much as a 25 percent increase in revenue with mobile check-in.

Mobile Check-out At the end of the stay, guests receive a text that mobile checkout is available. Itâ&#x20AC;&#x2122;s easy to view the detailed folio charges, including itemized receipts from outlets with InfoGenesis, leave the key, bypass the front desk and hit the road.

Mobile Check-in and Upsell Guests receive a text on their personal device, and use the link to check in prior to their arrival. Communicating in advance allows resorts to better prepare for guest arrivals. Plus, guests are prompted to spend more with a room upgrade or service enhancement, enabling a more desirable return per guest. Room Ready Messaging Guests receive an automated text alert once their room is ready. Because payment information is stored securely in a guestâ&#x20AC;&#x2122;s profile, they simply head

Mobile Housekeeping Digital, mobile housekeeping increases staff efficiency, reduces labor costs and helps create satisfied guests. Designed specifically to bring efficiency into operational workflows, LMS is the award-winning property management solution that operates 24/7, with a stable, secure and scalable platform with enough flexibility to grow the bottom line. For more information, visit agilysys.com.

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GOODS&SERVICES CAESARS EXPANDING INTO NON-GAMING MARKETS

aesars Entertainment has launched plans to license four of its brands in the wider world of non-gaming. The strategy, embracing Caesars Palace, Flamingo, the Cromwell and the Linq, follows two deals announced earlier this year in which the Caesars CEO Mark Frissora company will manage Caesars-branded resorts, sans casinos, in Dubai and Mexico. The Las Vegas-based gaming giant said the program will allow “strategic partners” to utilize the brands in “gateway cities around the world” and will include access to customers in Caesars’ 55 million-member Total Rewards loyalty program. “Caesars Entertainment brings instant brand recognition, category-leading customer loyalty, unique hospitality and entertainment amenities as well as decades of management expertise to worldclass partners seeking to deliver distinct lodging and resort experiences to a wide range of consumers,” CEO Mark Frissora said. Each of the brands will enjoy distinct marketing characteristics, the company said: Caesars Palace for “indulgent and fun luxury;” Flamingo as “vibrant Vegas-style;” Cromwell as “luxury lifestyle boutique;” and the Linq as “social, sensory and modern.” The idea is not new. MGM Resorts International has a luxury non-gaming hotel division with four properties in China, including the MGM Grand Sanya and Bellagio Shanghai. The company also announced an agreement last year to bring the MGM Grand and Bellagio brands to resorts in Dubai. Caesars’ two Dubai hotels, located at the Bluewaters Island development, are expected to open this year. A date hasn’t been set for the debut of the hotel in Mexico, a Caesars Palace venue on beachfront property along the coast of Puerto Los Cabos.

IGT READY FOR U.S. SPORTS BETTING

eading gaming supplier International Game Technology is ready to jump into the legal sports betting market in the wake of the U.S. Supreme Court decision removing the federal ban on sports wagering.

Global Gaming Business JULY 2018

In an investor call last month, IGT CEO Marco Sala said IGT will be competing in the newly emerging U.S. betting market with a new, end-to-end sports betting system. “Our offering is in pretty good shape,” Sala said, noting that the company already has such a system in place in Italy which includes distribution and mobile solutions that have been tested and licensed in the U.S. The platform was developed for MGM Resorts International in Nevada. The operator already has indicated it will use the system for expansions in Michigan, Mississippi, Massachusetts and Maryland. “Ultimately, the opportunity will depend on how many states choose to allow it, how quickly they do so, and how the regulations will shape the offer,” Sala said. “Having said that, we have a longstanding deep relationIGT CEO Marco Sala ship with the U.S. casino operators and state lotteries. “The timing and size of sports betting in the United States is an open question,” Sala added, noting that IGT has submitted the only bid to provide sports betting in Rhode Island through the state-operated lottery. IGT managed more than $12 billion in sports bets in 2017.

AINSWORTH, NOVOMATIC PARTNER IN ASIA

he top sales executive of Austrian gaming supplier Novomatic AG says that Australia-based Ainsworth Game Technology will help Novomatic— now Ainsworth’s largest shareholder—expand its footprint in Asian casino markets. Lawrence Levy, Novomatic’s vice president of global sales, told GGRAsia that his company has shared technology and R&D with Ainsworth after acquiring the 52 percent ownership stake of founder Len Ainsworth early this year. “We are sharing each other’s experiences and sharing each other’s concepts of game mathematics,” Levy said. “We are moving forward over the next two years at integrating games, game themes and platforms that we use, so we can consolidate further.” He added that cooperation on technology does not mean the companies are merging; both remain independent companies. “The important thing is that Ainsworth is strong where we’re still entering, and we’re strong in Europe, a market where Ainsworth is not.”

VGT TO LAUNCH PBR SLOTS

GT, the Class II subsidiary of slot-maker Aristocrat Technologies, has launched a series of Professional Bull Riders (PBR)-themed gaming machines, the first major licensed brand in the VGT portfolio. The PBR family of games premiered June 13 at more than 20 properties throughout Oklahoma. The games launched with the titles Blazing Bulls, VS, Fearless and Ryan Dirteater. Each of the three-reel mechanical wide-area progressive games has a jackpot that resets at $20,000 and gives players the chance to “ride the adventure” towards eight Red Spins, designed to mimic the excitement of an eight-second bull ride, according to the company. VGT is planning a series of fun promotions in support of the launch. Events include: • Special appearances by professional bull riders Ryan Dirteater and Chase Outlaw at select properties June 13-14, where the pros signed autographs and posed for photos with fans. • An appearance by a PBR bull rider at the June 15 and July 4 Oklahoma City Dodgers games, where the pros will show off their baseball skills by throwing the first pitch. Afterwards, they will host an autograph signing for fans. • Ryan Dirteater and PBR Announcer Matt West will make a special appearance in VGT’s booth at the Oklahoma Indian Gaming Show in Oklahoma City on July 24. • VGT will showcase the PBR games on the concourse during the PBR Express Employment Professionals Classic Presented by Osage Casino tournament, held in Tulsa’s BOK Center August 11-12.

INTERBLOCK UTILIZES MUSIC IN ETG STADIUM

fficials of Slovenia’s Interblock d.d. displayed a new feature of its Interblock Stadium electronic table game attraction at the recent G2E Asia trade show—“mood music.” In an interview at the show with GGRAsia, Interblock Asia VP Michael Hu said the music is

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GLOBAL GAMING WOMEN OPENS NOMINATIONS FOR PRESTIGIOUS AWARDS designed to provide atmosphere to different events in the games, which are centered on a live table with video beamed to electronic player stations, giving the game of roulette as an example. “At betting time—maybe 60 seconds—the music can be more quiet,” Hu said. “When the ball is launched, the music can get more energetic; and when the ball drops into the pocket, there is different music there as well. When the game is over, there is a different tune as well.” Hu said the addition was inspired by feedback from players in the Vietnam market. “It’s a great idea: simple but effective,” he said.

GLI OPENS SECOND AUSTRIA OFFICE

eading gaming testing company Gaming Laboratories International announced that it has opened a second office in Austria, in the city of Traiskirchen. The new office will complement the existing Graz laboratory. According to the company, it was opened to cater for the expanding requirements of the European gaming industry. The GLI Traiskirchen office is a response to the growth in online gaming in Europe as well as landbased testing and lottery certification, auditing and IT security. The company’s Austrian administration also has an office in Krakow, Poland.

lobal Gaming Women recently announced its call for nominations for the 2018 Great Women of Gaming Awards, designed to recognize and encourage outstanding achievements by women in the gaming industry. Aligned with the mission of Global Gaming Women, the awards have been updated to broaden the awareness, strengthen prestige and celebrate the success of women in the worldwide gaming industry. Additionally, the awards seek to engage more women in fields related to gaming and further Global Gaming Women’s goal of diversity in leadership. “We are thrilled to be able to use such a powerful platform to recognize women’s extraordinary accomplishments,” said Phyllis Gilland, chairwoman and president of Global Gaming Women. “These awards are unique as they celebrate the very best women in gaming at various stages in

their careers throughout the world.” The five award categories include Rising Star, Game Changer, Service Star, Leadership and Lifetime Achievement. There will be one award recipient in each category. Nominations are encouraged for women from casinos, lotteries, manufacturers, online gaming and sports betting, as well as other suppliers and vendors related to the gaming and lottery industries including law firms, marketing firms and more. Nominations can be submitted at globalgamingwomen.org/award-categories.

ECLIPSE GAMING LAUNCHES ‘MERMAID MULTIPLIERS’

hicago-based slot supplier Eclipse Gaming announced the launch of “Mermaid Multipliers,” the newest theme in the company’s successful and high-performing 10X Wild Multiplier Series. Mermaid Multipliers draws from the same strategies as Eclipse Gaming’s Super Slots of Cash, “combining a casino’s need for an authentic threereel, one-line game that delivers the rich math and volatility gamblers want in an easy-to-play game that appeals to the casual player as well,” the company said in a statement.

RYMAX ADDS SIX SUMMERORIENTED BRANDS

ew Jersey-based Rymax Marketing Services Inc. recently announced it has added six new brands to its rewards products portfolio. These include: • Cuisinart grilling products and accessories • Quay Australia sunglasses • Thermos insulated products • Schwinn bicycles • JetKids children’s travel products • Magic Chef kitchen gadgets A spokesperson for Rymax, the largest national manufacturer’s representative in the incentive industry, said, “The start of summer brings with it a feeling of euphoria and the promise of barbeques, beach trips and time spent outdoors. From grills and accessories to insulated products, and from sunglasses to outdoor bicycles, these new brand partnerships offer products perfect for any summer activity.” JULY 2018 www.ggbmagazine.com

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

19th Annual

Nominations are open for the gaming industry’s most prestigious awards. The GGB Gaming & Technology Awards are the casino industry’s most prestigious awards for technology, products and services. The honors are designed to recognize and encourage innovation and technology in the rapidly changing casino industry. Winners will be announced in the November 2018 issue of Global Gaming Business magazine and awards will be presented at Global Gaming Expo (G2E), October 9-11, 2018 in Las Vegas. DEADLINE: August 24, 2018

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

Nominations are now open in the following 4 categories:

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

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

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

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PEOPLE DUHON NAMED SUGARHOUSE GENERAL MANAGER

TAN NAMED ALLIANCE GLOBAL CEO

hicago-based Rush Street Gaming recently named Cheryl Duhon general manager of SugarHouse Casino in Philadelphia. Previously, Duhon served a dual role as vice president, general manager at Resorts Cheryl Duhon Casino Hotel in Tunica, Mississippi, and regional vice president of marketing for Tunica’s Resorts Casino Hotel and Bally’s Casino Hotel. Duhon also served as a financial analyst and then director of marketing at Riverwalk Casino Hotel in Vicksburg, Mississippi, Rush Street Gaming’s first U.S. casino development. In addition, in 2005, Duhon helped open L’Auberge du Lac Hotel & Casino in her hometown of Lake Charles, Louisiana. She then worked at Boomtown Hotel & Casino as a database marketing and financial planning analyst. Before joining the casino industry, Duhon worked as a process engineer and safety compliance specialist for a refining company.

WYNN APPOINTS CHIEF SUSTAINABILITY OFFICER

ynn Resorts announced the appointment of Erik Hansen as the gaming giant’s first chief sustainability officer, a position from which he will deErick Hansen velop Wynn’s global sustainability strategy and energy procurement goals. Hansen has a broad background in environmental protection, government regulation and cutting-edge technologies. He has been the company’s director of energy procurement for two years. He has more than 25 years of experience in the field. He negotiated, built and led the opening of the 160-acre, 20-megawatt Wynn Solar Facility and managed the Wynn Las Vegas shift to the open energy market. He also created an energy supply plan for the Encore Boston Harbor utilizing the first micro grid, a localized group of electricity sources. This was the first such micro grid to be implemented at an individual resort.

lliance Global, investor in Resorts World Manila in the Philippines’ Pasay City, has appointed Kevin Tan as its new chief executive officer. He will replace his father, Andrew Tan, who will remain as Kevin Tan chairman of the board of directors, reported the Philippine Star. Kevin Tan previously served as executive director of the conglomerate, a role he held from September 2016 until his appointment as CEO. In that role he was in charge of the company’s external affairs and representing Alliance Global in public and private functions. In addition to its involvement in Resorts World Manila, Alliance Global is involved in real estate, tourism and hospitality, food and beverage, quickservice restaurants and infrastructure, the Star reported.

CDC GAMING REPORTS NAMES STUTZ EXECUTIVE EDITOR

DC Gaming Reports announced that it has named award-winning gaming journalist Howard Stutz executive editor. Stutz will oversee all editorial functions for the gaming industry news outlet. Howard Stutz Stutz has spent more than three decades in Las Vegas as a gaming news journalist, including two stints with the Las Vegas Review-Journal, from 1987 to 1991 and from 2004 to 2016. He famously resigned from the newspaper on the basis of integrity concerns after the paper was purchased by the family of Las Vegas Sands Chairman Sheldon Adelson. He will supervise CDC’s editorial activity, including website content and article selections for the site’s various newsletters. Stutz will also write articles on gaming industry news, events and personalities, and will author a weekly commentary.

HILLMAN NAMED NETENT CHIEF EXECUTIVE

herese Hillman has been named group chief executive officer of NetEnt, Stockholm, the Sweden-based supplier of digitally distributed gaming

systems. Hillman served as NetEnt’s chief financial officer since January 2017 and acting chief executive officer since March 2018. A 10-year veteran of the ecommerce industry, Hillman previously was chief executive Therese Hillman officer of Gymgrossisten, a subsidiary of Qliro Group. She also was a member of the board at Unibet.

BYRGE NAMED SALES DIRECTOR OF GGB

lobal Gaming Business magazine recently announced that Lauren Byrge has been named the director of sales and marketing for the company. She oversees the sales and marketing efforts for GGB, Casino Style, Tribal GovLauren Byrge ernment Gaming, G2E Preview and all online marketing for the GGB websites. Byrge worked for nearly a decade in the advertising and marketing industry for top media firms such as iHeart Media, Greenspun Media Group and Virgen Advertising in the Las Vegas market. Prior to her position with GGB, Byrge was employed by a European-based gaming trade publication. In addition to her diverse media background, she has also managed the marketing and advertising campaigns for clientele spanning the entertainment, technology and gaming industries.

GGB

July 2018 Index of Advertisers

40 Under 40 . . . . . . . . . . . . . . . . . . . . . . . .37 AGA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43 AGEM . . . . . . . . . . . . . . . . . . . . . . . . . . . . .59 AGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 Aruze . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13 Dickinson Wright . . . . . . . . . . . . . . . . . . . .21 Everi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 Fantini Research . . . . . . . . . . . . . . . . . . . . .55 G & T Awards . . . . . . . . . . . . . . . . . . . . . . .56 G2E . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .33 Greenberg Traurig . . . . . . . . . . . . . . . . . . .27 IGT . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5, 29 Interblock . . . . . . . . . . . . . . . . . . . . . . . . . . .2 JCM Global . . . . . . . . . . . . . . . . . . . . . . . .11 JCM Global Golf Tournament . . . . . . . . . . .25 Konami . . . . . . . . . . . . . . . . . . . . . . . . . . . .60 Micro Gaming Technologies . . . . . . . . . . . .19 Osage Casino . . . . . . . . . . . . . . . . . . . . . . .53 RPM Advertising . . . . . . . . . . . . . . . . . . . .12 Rymax . . . . . . . . . . . . . . . . . . . . . . . . . . . .35 Scientific Games . . . . . . . . . . . . . . . . . . . . . .9

JULY 2018 www.ggbmagazine.com

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CASINO COMMUNICATIONS

oe Asher has been in the wagering business for more than 20 years. He was appointed CEO at William Hill US in 2012 and has been growing the company in Nevada since then. William Hill now operates more than 170 sports books in the state and offers a state-of-the-art mobile platform as well. May’s Supreme Court decision opens up an incredible amount of opportunity for William Hill in states that decide to legalize sports betting. Asher outlines what will attract his company to those states and why casinos should consider hiring William Hill or any other sports betting company to operate their sports books. He spoke with GGB Publisher Roger Gros at the William Hill offices in Las Vegas one week after the decision. To hear a full podcast of this interview where Asher discusses the “integrity” fee, the economics of sports books to casinos and more, visit GGBMagazine.com. GGB: Were you surprised about the clarity and decisiveness of the Supreme Court decision?

Joe Asher: No, I wasn’t. I wasn’t surprised. I

was in the courtroom in December when the case was argued, and obviously, anyone in the courtroom, on our side, had a pretty good feeling that day. But you never know. So, while I thought this was the most likely outcome, and that’s what we’ve been saying internally, you’re really reading tea leaves, and trying to determine votes by questions and the like. So, surprised, no. But obviously happy to read it. What will be the immediate impact first on the industry, and then on your company?

Clearly, just about everybody in the industry is now focused on sports betting. Before the decision, it was one of those things that was a priority among a lot of other priorities that

Global Gaming Business JULY 2018

Joe Asher CEO, William Hill US

eral government, which is about another 5 perfolks had. But now, it obviously went to the top cent of revenue. of the pile. Folks that we’ve been having discusHow in the world can the legal market possions with over the last couple of years were on sibly compete with all of the bookies, in Philly the phone that day asking us what they needed and Pittsburgh and other places? An illegal to do now. So, it certainly crystallized attention, bookie can offer a 25 percent rebate on all your and people now will go forward and make the losses, and he’ll still have a 16 percentage point investments that are required to be made. advantage over us. And he hasn’t paid the $10 On our side, we’ve been doing a lot of work million up front. He doesn’t have all these inand spending a lot of money in anticipation of frastructure costs that you the ruling. Not because see if you come to our ofwe were certain what the It is so important to have a fice. He doesn’t have a ruling was going to be, but because we felt we tax structure in place, and compliance department. had to invest in order to a regulatory environment He’s not paying payroll We really haven’t spent be ready in the event of a in place, that is going to atax.whole lot of time in positive ruling. But, allow us to be competitive Pennsylvania, because of clearly, there were some with the black market. the tax issue. So, that is things that we were defergoing be an absolute critiring, pending the outcal aspect of all of this. come—long-term leases for additional office space, contracts with other What do you bring to the table when you go operators, those types of things. Now we’re into a casino to run their sports book? comfortable pulling the trigger on those sorts of things. This is our little niche of the world. You know, I’ve been around the gaming industry my Now we’re looking at states considering legiswhole life, and if you want to talk to me about lation. It seems as though a lot of the politicians slot machines or table games or hotel rooms, I don’t have a realistic view of the business can have a very superficial conversation with model for sports betting. Is that your impresyou. But, if you want to talk about sports betsion? ting, that is the tiny little sliver of the world Obviously some are more informed than others, that we happen to know an awful lot about, clearly, as is the case with every issue. But it is so and that’s where we focus our efforts. important to have a tax structure in place, and a For casino operators who have a whole regulatory environment in place, that is going to bunch of other things on their plate, outsourcallow us to be competitive with the black maring it to William Hill is a great option. They’re ket. If you look in Nevada, we pay the gross going to have a better product; they’re going to gaming tax, which caps out at 6.75 percent. make a lot more money because they’re not And there’s a well-developed regulatory system. going to have all the costs associated with doing Contrast that with Pennsylvania, where the it. And it will be attractive to their customers. bill that passed requires a sports book operator So, that’s really the proposition, and they can pay $10 million up front, for the privilege of rest assured that they’re dealing with a comthen paying 36 percent at the state and local pany that is licensed and a known commodity, level. And of course, that’s in addition to quarhas good relationships with regulators, and is ter of a point of handle tax you pay to the fedgoing to do things in the proper manner.

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