Global Gaming Business, March 2021 by Global Gaming Business

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ggB Philly’s Finest Global Gaming Business Magazine

LiVe DeaLeRS SPoRTS BeTTing PLaTFoRMS igT’S DaRneLL JohnSon PoST-CoViD CUSToMeR ReSPonSeS

March 2021 • Vol. 20 • no. 3 • $10

Cordish’s Live! Philadelphia brings gaming to a sports complex

The

RoaRing ’20 s aRe BaCk Will gaming stage a massive comeback in the wake of Covid? Association of Gaming Equipment Manufacturers

SPECIAL REPORT:

Responsible Gaming’s Electronic Hurdle

How cashless transactions must be handled

PlayAGS.com

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CONTENTS

Vol. 20 • No. 3

march

Global Gaming Business Magazine

14 COVER STORY

COLUMNS

Pennsylvania Pride

10 AGA One Year On

Cordish Companies opens properties on each side of Pennsylvania in as many months, succeeding in bringing the Live! brand to Pennsylvania with Live! Casino Pittsburgh and Live! Casino & Hotel Philadelphia, the latter a category-killer casino resort in the center of the city’s Stadium District that takes full advantage of the Cordish sports vibe.

Casey Clark

12 Fantini’s Finance Show Me the Money Frank Fantini

DEPARTMENTS

By Frank Legato On the Cover: Rob Norton (l.), president of Cordish Gaming Group, and Cordish Companies principal Reed Cordish, at the entrance of the new Live! Philadelphia Casino & Hotel

FEATURES FOCUS ON:

RESPONSIBLE GAMING

30 Live and Online Live-streamed table games are gaining popularity in online casinos, particularly since last year’s shutdowns.

By Sally M. Gainsbury and Alex Blaszczynski

Column

27 Follow the Money

Research is in the early stages into the benefits and possible pitfalls of cashless play with respect to responsible gaming. By Marjorie Preston

By the Numbers

5 Questions

42 Emerging Leaders With MGM Resorts’ Zachary Levine, Bet365’s Peter Wolff, and NagaWorld’s Cherchi Chen

Casino operators are hoping tourism, travel and entertainment soar after the pandemic subsides—mirroring the Roaring ’20s of the last century in the years following another pandemic.

44 New Game Review 46 Cutting Edge 50 Goods & Services

By Steve Gallaway and Jack Gallaway

53 People

38 Sports Betting Tech 54 Casino Communications

The rapid growth of sports betting in the U.S. has fueled business for the top online betting platform suppliers.

With Darnell Johnson, Director of Product Management, Video Poker, IGT

By Dave Bontempo

Richard Schuetz

28 Cashless: Playing It Safe

41 Frankly Speaking

24 Will the ’20s Roar? 14 Responsible and Cashless

The Agenda

13 AGEM

By Marjorie Preston

Researchers from the University of Sydney in Australia examine how digital payment methods fit into responsible gaming harm minimization policies.

48 ICE on Ice Clarion Gaming canceled what was to be a combined ICE London/IGB Affiliate London at the end of June, setting the next dates for the events in their usual February dates in 2022. By Patrick Roberts MARCH 2021 www.ggbmagazine.com

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THE AGENDA

Pendulum Swings

Vol. 20 • No. 3 • MARCH 2021 Roger Gros, Publisher | rgros@ggbmagazine.com twitter: @GlobalGamingBiz Frank Legato, Editor | flegato@ggbmagazine.com twitter: @FranklySpeakn

By Roger Gros, Publisher

his is March; therefore, it’s Problem Gambling Awareness Month as designated by the National Council on Problem Gambling (NCPG). This is not Responsible Gaming Week, as observed in August by the International Center for Responsible Gaming (ICRG), formerly the National Center for Responsible Gaming. I’m not sure if they have “months” or “weeks” recognizing problem gambling, but there are organizations around the world dedicated to research and treatment of problem, compulsive or disordered gambling—the verbiage can be different in each jurisdiction. Very few of these organizations have government support, so they have to depend upon donations, mostly from the gaming industry itself. In this edition of GGB, we have several stories on problem gambling—a research paper about cashless transactions done by two of the most noted academics in the field, Sally Gainsbury and Alex Blaszczynski of the University of Sydney. We have a recap of why there are pros and cons to cashless transactions in responsible gaming. And finally, the astute Richard Schuetz explains why we won’t get anywhere in regards to responsible gaming until government officials do the right thing. Now, there are programs that have been set up by the larger gaming companies to address the issue of problem gambling. No one wants to profit off the weakness of players afflicted with problem gambling, so programs have been established to recognize the symptoms and identify the possible victims. So the big boys have implemented policies and procedures to help those who may be or become problem gamblers. MGM’s GameSense program allows players to set limits (but doesn’t enforce them). Caesars’ Project 21 addresses underage gambling, and another program teaches employees to card anyone who looks like they are under 30, as well as a program that teaches them to recognize the problem gambling signs, which they then report to a supervisor. Hard Rock’s PlayersEdge program attempts to educate gamblers with a message that is positive, fun and entertaining. For those who think they may have a problem, the message is supportive and non-judgmental. It seems that there are lots of conflicting messages in the problem gambling field. When I ask the people administering these programs if they’d sign up for an industrywide program with common goals and treat-

Global Gaming Business MARCH 2021

ment, there is lots of hemming and hawing. They each claim that their corporate cultures are unique and won’t fit into a “one-size-fits-all” solution. What’s the difference between the NCPG and the ICRG? Research, for one. The ICRG funds independent research into problem gambling and tries to identify the hurdles that effective treatments must overcome. Most of those hurdles have to do with comorbidity, or the very real fact that people afflicted with problem gambling are also suffering from other addictions to alcohol, drugs, sex or others. That makes the treatment angle, the specialty of the NCPG, more difficult. One thing the gaming industry—in the United States, at least—has going for it is that its responsible gaming efforts have largely been proactive. Former president and CEO of the American Gaming Association, Frank Fahrenkopf, has said many times that the best thing he ever did while head of the AGA was to get the NCRG (now ICRG) off the ground. He says his nightmare was to see gaming executives sitting before a congressional committee as clueless as the tobacco executives of a generation ago when grilled about smoking. When I was interviewing Anna Sainsbury, the founder of yet another group dedicated to responsible gaming, Conscious Gaming (see “5 Questions” on page 8), she told me under no circumstances should the study or treatment of problem gambling be competitive. I completely agree with this. While each social organization or public company may have a different approach, we should all have the same goal: the minimization and eventual eradication of problem gambling. The gaming business in other countries—Canada, the U.K., Australia and others—has suffered because they weren’t prepared to adapt strategies to minimize problem gambling. And when the mainstream media gets hold of the anecdotal horror stories of the few afflicted with the problem, everyone suffers when it could have been identified early on and mitigated. So let’s stop knocking our heads against each other. Let’s cooperate, share best practices and make sure that people who are enjoying our product for entertainment are our target market. For those who have or may have problems with it, we can help them. And we’d better, because our industry depends on it.

Marjorie Preston, Managing Editor mpreston@ggbmagazine.com Monica Cooley, Art Director mcooley@ggbmagazine.com Terri Brady, Sales & Marketing Director tbrady@ggbmagazine.com Becky Kingman-Gros, Chief Operating Officer bkingros@ggbmagazine.com Lisa Johnson, Communications Advisor lisa@lisajohnsoncommunications.com twitter: @LisaJohnsonPR Columnists Casey Clark | Frank Fantini | Richard Schuetz Contributing Editors Alex Blaszczynski Dave Bontempo twitter: @bontempomedia Sally M. Gainsbury | Jack Gallaway | Steve Gallaway Patrick Roberts | Bill Sokolic twitter: @downbeachfilm Michael Zhu __________________

EDITORIAL ADVISORY BOARD Rino Armeni, President, Armeni Enterprises

•

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

• Julie Brinkerhoff-Jacobs, President, Lifescapes International

• Nicholas Casiello Jr., Shareholder, Fox Rothschild

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

• Dean Macomber, President, Macomber International, Inc.

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

• Jim Rafferty, President, Rafferty & Associates

• Thomas Reilly, Vice President Systems Sales, Scientific Games

• Michael Soll, President, The Innovation Group

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

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

• Roy Student, President, Applied Management Strategies

• David D. Waddell, Partner Regulatory Management Counselors PC Casino Connection International LLC. 1000 Nevada Way • Suite 204 • Boulder City, NV 89005 702-248-1565 • 702-248-1567 (fax) www.ggbmagazine.com The views and opinions expressed by the writers and columnists of GLOBAL GAMING BUSINESS are not necessarily the views of the publisher or editor. Copyright 2021 Global Gaming Business LLC. Boulder City, NV 89005 GLOBAL GAMING BUSINESS is published monthly by Casino Connection International, LLC. Printed in Nevada, USA. Postmaster: Send Change of Address forms to: 1000 Nevada Way, Suite 204, Boulder City, NV 89005

Official Publication

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BY THE

NUMBERS

The RoAd BACk A

report issued by the Las Vegas office of KPMG and the University of Nevada, Las Vegas’ International Gaming Institute, called “Gaming Companies Place Their Bets,” examined how the gaming industry has changed in the year since Covid-19 became a pandemic. The comprehensive report was conducted in May and September 2020 and surveyed casino customer sentiment during those periods. The report evaluated actions taken by casinos—mask requirements, Plexiglas installations and limited number of table game players, social distancing in slot areas, hand-washing stations and more—and measured the response of customers who had returned, and those who still had not. Basing much of its findings on the people who had returned, the study suggests that casinos focus on making the customer feel safe and secure by fine-tuning health and safety measures, making them visible and increasing options for touch-free entertainment. The chart outlines, on a scale of 1 being least comfortable and 5 being most, how the customers feel today about the various areas of the gaming resort.

Comfort Levels Across Areas of the Casino Property

online Upbeat

ne of the positive aspects of the pandemic has been the surge in the popularity of online gaming, coupled with the growth of sports betting. According to the “Gaming Companies Place Their Bets” study, loyal gaming customers in states where online gaming was legal quickly found their way to the iGaming sites for the land-based casinos, as well as other legal online options. Digital interactions, transactions and communications had never kept pace with other industries because of the regulatory challenges and the demographics of the casino customer. During the pandemic, however, all that changed. In May, 52 percent of respondents said that online gaming was an acceptable replacement for visiting a casino. But by the fall, almost 60 percent agreed. That was clearly evident in the few states where online gaming was legal, which triggered the “flywheel effect” where certain outcomes encourage the expansion of iGaming. To obtain a copy of the KPMG/UNLV IGI study, visit www.advisory.kpmg.us/articles/2021/gaming-companies-place-bets.

Global Gaming Business

MARCH 2021

We manage the risk. You get the reward. Mark Dufty

IGT PlaySports, Director of Trading Services

With IGT PlaySports, you can step confidently into the world of sports betting, knowing that our proven cross-channel platform and turnkey services will drive your success. Staffed with in-house talent, the US-based IGT PlaySportsTrading Team provides around-the-clock, high-quality risk management services, expert oddsmaking, and localized pricing for pre-game and in-play bets. Plus, creative content managers round out our lineup, assisting with the design of innovative marketing and promotion strategies that deliver winning results.

Contact your IGT representative today.

www.igt.com/playsports

© 2021 IGT Global Solutions Corporation. 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. IGT is committed to socially responsible gaming. Our business solutions empower customers to choose parameters and practices that become the foundation of their Responsible Gaming programs.

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NUTSHELL

“They

5QuestIons

Anna Sainsbury

Co-Founder & Chairwoman, GeoComply, and Conscious Gaming Trustee 10 years, GeoComply has become the go-to company when it comes to geolocation technolIshenogylessmustforthaniGaming and sports betting organizations. Co-founder Anna Sainsbury says success means that give back to the community, and helped to develop Conscious Gaming, a nonprofit enterprise dedicated to spreading the word about responsible gaming across the industry. Conscious Gaming’s PlayPause tool allows players to understand how to employ responsible gaming strategies. But a possible universal self-exclusion list will make it easier for the industry to identify players with problem gambling issues at all gaming touchpoints. She spoke with GGB Publisher Roger Gros from her home in Vancouver in January. To see the Zoom podcast of this interview, visit GGBMagazine.com. GGB: Please explain the genesis of Conscious Gaming and why you believe this organization could be very important to the industry. Anna Sainsbury: Because I’m the founder of a geolocation company, we had the ability to see how many

users would cross the border to gamble wherever we operated. As I joined the board of the American Gaming Association, where they have a lot of initiatives supporting research and education into responsible gaming, I realized we have a need for products and technology to help support the research that is coming out and to create what the regulators want to see. We’ve seen some really great research coming out, but no one has been able to take that science-based knowledge and develop it into a technology. Because we have that oversight, we knew the need. We know that at this moment, self-exclusion is handled on a state-by-state basis. So if you’re in New York, you just have to go across the river to be able to gamble in New Jersey or go to Vegas twice a year. As more states legalize sports betting, casino, poker, lottery, the exposure is greater. So our goal is to expand self-exclusion from the primary state where they are excluded to all the states that would participate. You’ve reached an agreement with Pennsylvania to bring your programs to that state. Are you talking to other states as well?

2 3 4 5

We’ve had a tremendous amount of interesting and insightful conversations with state regulators and legislators in numerous states about what the capabilities are. We’re also talking to multiple operators and platforms. We don’t want this only to be Conscious Gaming. It only works if we all recognize that this is something we want to improve. Lots of operators are putting into place their own responsible gaming programs, but they are proprietary and individual. Would you like to see a universal program put into place?

Philosophically, there’s no way that we should be competitive on responsible gaming. The only way we will all win is if we’re actually taking care of people’s needs. For Conscious Gaming, we are more than happy to be a platform that integrates multiple different methods. We want to build confidence in this approach. We’re trying to get the greatest participation by emphasizing that there is no cost for anyone to participate. It’s completely free, completely open. We want it to be community-based, so we’re taking feedback from anyone that has an interest in this issue. So, is this just about operators and suppliers?

No, we’re reaching out to everyone involved in the space. For example, some regulators have told us there’s a need to block players in professional and amateur sports leagues from participating, so we’ve extended the free solution to all the leagues so they can use it as a centralized database share with their members so operators would know not to accept bets from anyone on that database. What about cashless payments? There’s a concern that this could exacerbate problem gambling. How would your system assist in the effort to combat that?

We’re doing a lot of research about what cashless means to responsible gaming efforts. We believe we can directly integrate into those cashless solutions so that someone who has self-excluded anywhere in the U.S. would not be able to participate with cashless gaming.

Global Gaming Business MARCH 2021

Said It”

“Guests must wear a mask indoors, but are allowed to remove it to smoke (or vape), blowing potentially hazardous droplets into shared air for fellow guests and gaming employees to breathe in. No credible public health official would approve of allowing the removal of masks to smoke.” —Cynthia Hallett, Americans for Nonsmokers’ Rights, in a letter to President Joe Biden asking that Covid funds be withheld from casinos that allow smoking

CALENDAR March 22-24: CasinoBeats Summit, InterContinental, St. Julian’s, Malta. Produced by SBC. For more information, visit SBCEvents.com. LIVE March 23-25: SPICE India, Goa Marriott Resort & Spa, Goa, India. Produced by Eventus International. For more information, visit sportsbettingevents.com. LIVE May 27-28: SIGMA Asia, SMX Convention Centre, Manila, Philippines. Produced by SiGMA. For more information, visit SiGMA.com. LIVE May 28: Prague Gaming Summit, Vienna House Andel’s Prague, Czech Republic. Produced by European Gaming Media and Events. For more information, visit PragueGamingSummit.com. HYBRID June 8-10: Canadian Gaming Summit, Metro Toronto Convention Centre, Toronto, Ontario. Produced by the Canadian Gaming Association. For more information, visit CanadianGamingSummit.com. LIVE June 14-17: International Gaming Summit 2021, Culloden Estate and Spa, Belfast, Northern Ireland. Produced by the International Association of Gaming Advisors (IAGA). For more information, visit TheIAGA.org. LIVE July 19-22: Indian Gaming 2021, Caesars Forum, Las Vegas. Produced by the National Indian Gaming Association. Held concurrently with RES21, produced by the National Center for American Indian Enterprise Development (NCAIED). For more information, visit IndianGaming.org. LIVE August 17-19: G2E Asia, Venetian Macao Cotai Exhibition Center. Produced by the American Gaming Association and Reed Exhibitions. For more information, visit G2EAsia.com. LIVE October 4-7: Global Gaming Expo (G2E), Sands Expo Center, Las Vegas. Produced by the American Gaming Association and Reed Exhibitions. For more information, visit GlobalGamingExpo.com. HYBRID

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AMERICAN GAMING ASSOCIATION

One Year On Covid-19 sent gaming into a tailspin but the response of the industry was indicative of its commitment to its communities

early one year ago, Covid-19 brought our dynamic, thriving industry to a screeching halt. The cancellation of an NBA game and March Madness was followed by months of shuttered doors at every one of the nation’s 989 casinos, wiping out supplier demand and idling 650,000 gaming employees. During these most challenging months, however, the industry shined. In a new American Gaming Association (AGA) report, “Casinos & Communities: Covid-19 Response,” we reflect on all the ways our industry stepped up to support our communities and employees despite the deep economic challenges of the pandemic. The industry’s efforts to aid America’s Covid19 response began immediately, helping solve nationwide shortages of personal protective equipment and testing. Las Vegas Sands imported 2 million masks for health care workers in Nevada and New York, while casino operators like Boyd Gaming, Foxwoods Casino and Wynn Resorts contributed hundreds of thousands of additional protective supplies for front-line workers across the U.S. MGM Resorts was able to leverage its vast supply chain to distribute and store Covid-19 tests across southern Nevada, and properties from Twin River Casino in Rhode Island to Chickasaw Nation’s WinStar World in Oklahoma served as testing centers for local residents. Following abrupt property closures, operators utilized their resources to the benefit of first responders and gaming communities. Operators from Atlantic City to California and everywhere in between donated millions of meals to neighbors in need. Instead of remaining dark, properties like Penn National’s Greektown Casino in Detroit opened their doors to provide housing to first responders on the front lines of fighting the pandemic. Gaming’s commitment to responsibility starts with our employees, and that was even more important during this difficult year. Many operators and suppliers paid employees and extended benefits through closures. Aristocrat Technologies, William Hill US and DraftKings Inc., among

Global Gaming Business MARCH 2021

By Casey Clark

“

Together, operators and suppliers have written the blueprint for businesses to responsibly reopen, establishing rigorous testing and contact tracing protocols to keep customers and employees safe and slow the spread of Covid-19 in our communities.

”

others, set up emergency relief funds to provide financial assistance to current and former employees. We are now leading the next phase in America’s battle against Covid-19. Together, operators and suppliers have written the blueprint for businesses to responsibly reopen, establishing rigorous testing and contact tracing protocols to keep customers and employees safe and slow the spread of Covid-19 in our communities. And our guests are taking notice: about 80 percent of future visitors say the gaming industry has done a good job at safely reopening. As you read this, casino operators are using facilities to serve as vaccination sites and pioneering innovative ways to bring large events back to our properties via rapid testing—both important steps in our economic recovery. We are immensely proud to represent this innovative industry whose collective efforts have improved the health, safety and well-being of our communities. Gaming’s role as a community partner, trusted employer and economic engine have never been more important. As we focus on accelerating gaming’s recovery, the AGA will work to ensure your many contributions in these important areas are well-understood. Casey Clark is senior vice president of strategic communications for the American Gaming Association.

Strength in Numbers

More than 180 member companies from 22 countries Nearly $21 billion in direct revenue • 61,700 employees 13 publicly traded companies • ONE POWERFUL VOICE Address worldwide industry regulatory and legislative issues • Discounts on major trade show booth space Promote responsible gaming initiatives • Updates from influential global industry leaders Advertising discounts in leading industry publications • Educational partnerships benefiting students and members Visibility in AGEM’s print advertisements • Exposure for publicly traded companies in the monthly AGEM Index Join AGEM today and work together with the world’s leading gaming suppliers. Marcus Prater, Executive Director +1 702 812 6932 • marcus.prater@agem.org Tracy Cohen, Director of Europe + 44 (0) 7970 833 543 • tracy.cohen@agem-europe.com Connie Jones, Director of Responsible Gaming +1 702 528 4374 • connie.jones@agem.org Design & photo-illustration by Jeff Farrell.com • AGEM and charter ESP member since 2007.

AGEM.org

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FANTINI’S FINANCE

Show Me The Money Regional casino operators have delivered for investors over the past five years and other gaming stocks haven’t disappointed By Frank Fantini

here are lots of ways to make money investing in stocks. There are growth stocks. Tech stocks. Stocks in emerging industries. Emerging markets. There are ETFs. You can trade on technical patterns. You can trade on momentum. You can arbitrage. You can short the highflyers. You can trade based on value. For income. You can rotate from sector to sector. You can be a fundamental investor, a quant, a day-trader. And on it goes. But if you are a buy-and-hold investor in gaming stocks, there has been one place to be over the past five years, and it wasn’t in the big glitzy names of the Las Vegas Strip or Macau that grab the headlines. Nor was it in the realm of technology or games whose brightest and newest toys are attention-getters. The biggest winners were in the less storied sector of the gaming industry—the geographically diversified U.S. regional casino operators. And among them, the two best stock performers during that period were Eldorado Resorts-Caesars and Penn National, each up nearly 900 percent from February 1, 2016 to early February 2021. Those two companies beat out all the glamorous and famous names in gaming, in the U.S., in Asia, in Europe, anywhere in the world. You didn’t do badly in the other geographically diversified regionals, either. Churchill Downs is up 400 percent and Boyd Gaming more than 200 percent. And Full House Resorts, not quite a peer given its small size, is up 335 percent as of this writing, most of that coming just this year. Those gains compare to a combined average of 61 percent for the three U.S. Las VegasMacau names—Las Vegas Sands, Wynn Resorts and MGM Resorts. However, that trio is down 25 percent over the past three years. Their roller-coaster rides are actually typical of gaming stocks during this time. The Big Three gaming technology companies, for exam-

Global Gaming Business MARCH 2021

ple—IGT, Scientific Games and Aristocrat— rose over 200 percent since early 2016, but are now 7 percent below early 2018. Much of that is mercurial Sci Games, which has bounced from highs to lows and recently has been up again. Aristocrat, despite being on a roller coaster, too, remains up nearly 40 percent from early 2016. Everi, not quite a peer given its fintech and smaller games businesses, is the big winner in this space, up over 400 percent over five years and nearly 100 percent over the past three years. Likewise, the pure Macau plays—the five Hong Kong-listed casino operators and Melco Resorts—are up 70 percent since 2016 but are

Except for the “regional casino

operators and a few other companies, gaming stocks have considerably underperformed the broader market over the three- and five- year periods.

”

down nearly 30 percent over the past three years thanks to fears of Chinese government policies and to Covid-19. If you’re looking for sports betting and iGaming stocks that have been around for the full five years, Kambi, Entain, 888 and Flutter are winners, up 330, 160 , 80 and 45 percent, respectively. William Hill has lagged, down nearly 30 percent. Other big buy-and-hold gainers over the past five years include Macau casino operator Galaxy Entertainment, up over 160 percent, and Nevada-based Monarch Casino and Golden

Entertainment, up around 220 percent and nearly 100 percent, respectively. The latter two, though not as geographically diversified as Penn National or Boyd, are regional operators, also. Except for the regional casino operators and a few other companies, gaming stocks have considerably underperformed the broader market over the three- and five-year periods. One reason for the roller coaster is the same reason that casino stocks have historically sold at lower valuations than their sister entertainment and hospitality industries such as hotels and restaurants—the threat of governments to upend plans, whether that is China imposing restrictions that limit Macau gaming business or competitors opening in surrounding countries. It also illustrates, as did the 2008-2009 economic crisis, that as consumer discretionary businesses, casinos are vulnerable to business cycles and to shocks such as Covid has administered in the past year. The old idea of gaming being recession-proof, if wounded by the 2008-2009 meltdown, has been put away for good by a virus. There’s also a lesson on the positive side: Sometimes the tortoise wins the race. Companies like Penn National, EldoradoCaesars, Churchill Downs and Boyd don’t grab headlines like speculation about $10 billion casinos in Japan or multibillion-dollar projects in Macau. They just block and tackle, grow opportunistically through acquisitions and basically are well-run companies executing sound strategies. And quietly, over the past five years, they have provided the best returns in gaming. Now, we have the proliferation of sports betting in the U.S., and each of these companies has positioned itself to capitalize on the opportunity. We’ll come back in another five years and see how they have treated buy-and-hold investors. The odds are it will have been very well. 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 General Touch, based in China, had been jostling for

a respectable position in gaming for the past decade as a dark horse. With its recent advances in narrow border (4 mm), curved and optically bonded PCAP touch screens, General Touch is becoming a strong contender in this growing field. The going is good. Like an upscale casino, offering players a variety of exciting games for that adrenalin rush, General Touch offers a slew of options for the hardware display design to charm players. The gaming industry deploys the most dazzling and ornate touch displays. General Touch’s menu includes addressable LED illumination, curved displays, ultra-narrow border, optical bonding, antimicrobial cover glass, a wide range of screen sizes and touch-glass button decks too. With facilitated customization from General Touch, the design configurations for gaming displays can become an art form. Betting is in General Touch’s corporate blood. By betting on its customers winning in the high-stakes marketplace, General Touch will do whatever it takes to fulfill their product requirements. At the end of the day, the customers are delighted by General Touch’s invested passion to drive their competitiveness to effectuate a high payout for everyone. With the added benefits of its continual growth and improvement in business practice and technical competence, customers are being dealt a good hand regularly. Besides gaming, General Touch has gambled and won in other fields such as kiosks, banking, HMI, POS, health care and public transportation. Those who have put money on its touch and display solutions have been won over by its premium tech without a premium tag, in addition to the very low RMA rate that has become General Touch’s trademark. General Touch is wagering at the ICE trade show in London by presenting a range of new products. In January 2021, General Touch also projected itself as a pundit at the National Retail Federation 2021 virtual exhibition. For more information on General Touch’s products and services, visit en.generaltouch.com. AGEM is an international trade association representing manufacturers of electronic gaming devices, systems, lotteries and components for the gaming industry. The association works to further the interests of gaming equipment manufacturers throughout the world. Through political action, trade show partnerships, information dissemination and good corporate citizenship, the members of AGEM work together to create benefits for every company within the organization. Together, AGEM and its member organizations have assisted regulatory commissions and participated in the legislative process to solve problems and create a positive business environment.

AGEM Board of Directors Actions for February 2021 • Following the January AGEM meeting that saw J. Brin Gibson, the new chairman of the Nevada Gaming Control Board, outline his plans for the year, the AGEM Compliance Committee provided input for a working group meeting between AGEM and the NGCB to discuss a review of the language for two pending bills in the Nevada legislature—AB 7 and AB 8. This was a good meeting that resulted in some of the language flagged by AGEM’s Compliance Committee after being reviewed and the suggested content incorporated into the draft. Although this was only a small step toward overall regulatory reform, it signals a good start to working relations between AGEM and the new chairman and his team, including Jim Barbee, chief of the Technology Division. • The Nevada legislature reconvened recently in Carson City, albeit with limited lobbying, press and people, due to the pandemic. Currently, there is not much industry activity in this area, but AGEM was highly encouraged when Governor Steve Sisolak recently reached out to Executive Director Marcus Prater to see if AGEM needed anything on a legislative level addressed. This is a positive and reassuring move that indicates AGEM is on leadership’s radar and they are receptive to industry needs. • The chairman of the AGEM Mexico Committee, Carlos Carrión of Aristocrat, made some significant developments recently when he met with new SEGOB Director Alma Itzec De Lira Castillo. Two indepth meetings took place in which Carrión was able to give a full overview of how the supplier sector operates in the region and how this differs in other areas around the world. AGEM is committed to working with the new regime supporting and educating on industry issues. Encouragingly, both sides are opposed to the proposed “NOM,” or new federal rule, that has the potential to require an additional level of certifications for machines coming into the country. SEGOB recognizes manufacturers are key to the industry, and the new director has expressed he is happy to work closely with AGEM for the greater good. • Following the recent contract agreement between AGEM, the American Gaming Association (AGA) and Reed Exhibitions in relation to the Global Gaming Expo trade show, it was decided to establish a steering committee that will meet four times a year. The first of these meetings will take place on February 17, where two members each from AGEM, AGA and Reed will decide major issues that ultimately shape the show. • AGEM members recently approved a one-year contract for Executive Director Marcus Prater, instead of the usual three-year term, as it was announced he will be stepping down and a new executive director will take over the helm March 1, 2022. Prater has agreed to a further six-month term up to G2E 2022 to ensure a smooth transition period. A recruiting committee has been set up consisting of AGEM officers and one non-board member who will start their search now to find the right candidate. Connie Jones, director of Responsible Gaming, also had a one-year contract approved at the same time.

Forthcoming Events • After two previous postponements in April and June, the organizers of the National Indian Gaming Association (NIGA) trade show have confirmed the event will now take place in Las Vegas at the new Caesars Forum July 19-22. The RES (Reservation Economic Summit) will also take place around the same date, and both event organizers will work together to ensure attendance is strong.

AGEMindex

The AGEM Index improved by 8.96 points in January 2021 to 696.08 points, a 1.3 percent gain from December 2020. Overall, the majority of companies in the AGEM Index reported declines in stock price over the month, with eight trending negatively and five moving positively. The AGEM Index’s monthly growth was due in large part to an increase in the stock price of Konami Corp. (TYO:9766). The company’s stock price increased by 13.4 percent and contributed 18.22 points to the AGEM Index’s January gain. Additionally, the stock price for Ainsworth Game Technology (ASX:AGI) increased 66.7 percent, which led to an index contribution of 2.47 points. Change for the major stock indices was mixed during the month. The Dow Jones Industrial Average and the S&P 500 declined by 2 percent and 1.1 percent, respectively, while the NASDAQ grew by 1.4 percent.

MARCH 2021 www.ggbmagazine.com

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Philadelphia Live! Casino & Hotel

Cordish Companies perseveres through the Covid-19 crisis to open two Pennsylvania properties in a year—the second a category-killer

! e v i LPerformance By Frank Legato

ast month, Cordish Companies staged a weeklong grand opening celebration for the new Live! Casino & Hotel Philadelphia. Any other year, this would be a routine, feel-good industry story. This year, it is a story of a remarkable achievement. Live! Philadelphia is the second Cordish casino opened in as many months, both built in record time in the middle of the Covid-19 pandemic. Baltimore developer Cordish had parlayed its regional “Live!”-branded sports and entertainment districts into the casino business with the 2012 opening of Live! Casino & Hotel Maryland, adjacent to the Arundel Mills Mall in the Baltimore suburb of Hanover. It wasn’t the first casino project for Cordish, which developed the Hard Rock resorts in Tampa and Hollywood, Florida for the Seminole Tribe. But it was the first to take the Live! concept—sort of a sports bar on steroids, awash in video monitors, entertainment and a full food menu—and wrap it into a casino. After Live! Maryland opened, Philadelphia was a natural next step for Cordish, which already operated the Xfinity Live! attraction in partnership with Comcast, Inc. Xfinity Live! is a short walk from Wells Fargo Center, the arena of the NHL’s Philadelphia Flyers and the NBA’s Philadelphia 76ers. It is the heart of the city’s Stadium District, walking distance not only from Wells Fargo Center, but Citizens Bank Park, home of Major League Baseball’s Philadelphia Phillies; and Lincoln Financial Field, home of the NFL’s Philadelphia Eagles. This is sports central, a perfect complement to the Live! brand. The

Global Gaming Business MARCH 2021

new property would capitalize on that fact, with nods to the city’s sports teams all around the property, a collection of bars and lounges adorned with huge LED screens beaming sports contests, and its unique FanDuel Sportsbook and Lounge, a state-of-the-art facility giving patrons the ability to bet on sports while lounging in style. But Philly is not the only amazing Pennsylvania story from Cordish this year. In December, the company unveiled Live! Pittsburgh, located in the space of a former anchor store at the Westmoreland Mall, around 30 miles east of downtown Pittsburgh. The new Philadelphia property gives the developer bookend properties in the two largest markets in the second-largest gaming state in the country.

Eyes on Pennsylvania With Pennsylvania one of the only gaming states in expansion mode prior to the pandemic, Cordish Companies had eyes on the market as perfect for the follow-up to its popular Maryland Live! property. The second Philadelphia casino license, in flux after successive owners backed out amid the Great Recession, provided a perfect opportunity. Cordish formed a subsidiary, Stadium Casino, originally in partnership with Greenwood Gaming, which owns Parx Casino in the Philadelphia suburb of Bensalem. Ultimately, Cordish would buy out its partner in 2018 to become the sole owner of Philadelphia’s second casino license, for a hotel-casino to be built in what is arguably one of the most prime locations in the nation. Sitting in the center of all of Philadelphia’s professional sports facilities will

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Sports & Social sports bar at Live! Philadelphia Below: FanDuel Lounge at Live! Pittsburgh

surely result in a host of foot traffic on and around game days, and with easy access from Interstates 95 and 76, and it’s hard to argue with the location. By the time Cordish took sole possession of Stadium Casino, the company was eager to capitalize on the new Pennsylvania gaming law, which in 2017 created a new license category—Category 4, smaller casinos (750 slots, 40 table games), created as satellite facilities for current licensees. Cordish jumped on the opportunity by securing a license to build its satellite facility in the state’s second-most populous area. “The commonwealth of Pennsylvania has a tremendous value to us as a major East Coast operator in the casino space,” says Cordish Companies principal Reed Cordish. “Being in the two premier cities obviously has its merits, and we have great locations in both cities.” Construction on the two Pennsylvania properties would occur concurrently. Cordish celebrated construction milestones on both sides of Pennsylvania in 2019 as both projects proceeded smoothly. Then, Covid-19 hit. With casinos idle around the world, it was reasonable to expect operators to stand pat in survival mode, as opposed to growth mode. But Cordish soldiered on with both projects—remarkably, completing them not far from the original targeted opening dates. Live! Casino Pittsburgh opened as the state’s first Category 4 casino—and likely the only one ever to open before its host casino—in early December, and the Philadelphia property opened for Preview Days January 19. But the celebration in Philadelphia on February 11 heralded the next evolution of the Cordish gaming model—the Live! entertainment concept matched up with hallowed sports ground in the nation’s third-largest city.

Pittsburgh First It’s no coincidence that the Cordish gaming model also happens to work quite well on the western side of Pennsylvania. According to Rob Norton, president of Cordish Gaming Group, the company moved to secure a satellite facility (sometimes called “mini-casinos”) as soon as Category 4 was created in 2017. “Once the Category 4 options became available and the law passed, we immediately started considering the potential locations,” Norton says. “We

felt like there were a handful of really great locations, and our location in the Westmoreland Mall, on the east side of Pittsburgh, we felt was the best option in the entire state. And as you saw, even during the pandemic, we went from from concept to opening in near record time.” “It’s a great area where we’re in a fantastic mall,” comments Joe Billhimer, Cordish executive vice president in charge of both Pennsylvania properties, who notes that it’s one instance of the original Maryland Live! property serving as a model going forward. That property is adjacent to a retail mall; Live! Pittsburgh is in a mall. “The Cordish experience experience of operating gaming (adjacent to) a mall has proven to be beneficial in terms of foot traffic, location, and locating where people like to go,” Billhimer says. “It is a very nice, well-appointed casino, 750 slots, 30 tables, two great dining venues—we’re really proud of how that fits into the market there. We think it will be a draw for that whole part of Pennsylvania.” That includes employing local talent. Cordish established a live dealer school near the Westmoreland Mall, augmenting what Billhimer says was a MARCH 2021 www.ggbmagazine.com

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PBR inside Live! Pittsburgh Below: Live! Philadelphia casino floor

very good supply of experienced dealers from other Pittsburgh-area and West Virginia casinos. The property itself follows the Cordish model, including the necessary sports vibe—capsulized by the popular Sports & Social sports bar concept. First conceived 10 years ago at Cordish’s Fourth Street Live! property in Louisville, Kentucky, Sports & Social blends dining, social games and various other entertainment in a unique attraction centered around sports. “One of the signature concepts of our Live! districts is our trademark brand Sports & Social, which we consider to be the premier sports-focused restaurant and entertainment concept in the country,” says Cordish. “It’s one of the highest per-square-foot revenue restaurants in the United States, and just a juggernaut success in Pittsburgh.” And in Pittsburgh, sports are woven into the fabric of the market every bit as much as in Philadelphia. “In Pittsburgh, we have one of the more higher-end Sports & Social facilities within the portfolio,” says Billhimer. “It’s an unbelievable spot to watch sports, and we’ll do (partnerships) in the Pittsburgh market with the sports teams.”

Category-Killer If Live! Pittsburgh is a sure hit, Live! Philly is a sure home run. Cordish built the property in the style of a destination resort, distinguishing it from nearly all other regional casinos, which are built more for convenience-style locals gambling. 16

Global Gaming Business MARCH 2021

The one constant that will drive success for this destination-style business, though, is that prime location. “I have to tip the hat to the Cordish family and the Cordish development team for doing what nobody has been able to do for a long time in securing a site here in the Philadelphia area,” says Billhimer. “It’s one of the best sites left in America.” “What really excited us about it,” adds Cordish, “was the opportunity to create something in conjunction with the Stadium District that is truly unique anywhere in the United States. This combination of four professional sports teams and a world-class gaming resort facility sets it apart.” Cordish adds that with the new Live! casino, the company was able to benefit a Philadelphia community it has been a part of for nearly a decade. “We’ve had the privilege of being able to operate in this market for a long period of time,” he says. “We opened Xfinity Live! with our partners Comcast back in 2012, and it’s been one of the strongest food and beverage entertainment districts of its kind anywhere in the United States. And that certainly gave us a lot of confidence going into this larger project. This is a market we know well and a market we really like.” That feeling, no doubt, is mutual. Live! Philadelphia created 5,000 jobs (3,000 in construction; 2,000 permanent) and will have an estimated economic impact in the neighborhood of $2 billion in the first five years of operation. If there was ever a facility that can meet or exceed those estimates, it is Live! Philadelphia. The 510,000-square-foot property features 2,200 slot positions, which includes 74 electronic table games. There are 121 table games with plans to expand to 150, a dedicated 29-table poker room, a six-room Event Center that includes 15,000 square feet of customizable meeting/entertainment event space, and a variety of food and beverage options that include a number of local favorites. An attached multi-level parking facility is augmented by some 2,000 spaces in an outdoor surface lot. Across the property’s interior are nods to the Philadelphia region, including not only sports teams but artwork from local artists, famous local food, and even the sculpture that greets customers at the casino entrance—a bright red replica of Robert Indiana’s famous “LOVE” sculpture that marks the Love Park plaza in downtown Philadelphia. Of course, this one says “Live!” instead of “Love.” Restaurants include The Prime Rib, the top Zagat-rated steakhouse previously located in Center City Philadelphia for more than 20 years; Luk

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Electronic table games at Live! Philadelphia

Fu, “where the authentic flavors of Southeast Asia meet in South Philadelphia;” and 10th Street Market, a unique food hall inspired by the great food markets in Philadelphia where guests will be able to enjoy a wide variety of food, as well as a bar open 24/7. The F&B offerings include special touches like private dining and karaoke rooms in Luk Fu, the Asian fusion brand first developed at Live! Maryland. Inside the room, a large circular table is equipped with giant lazy Susan for community dining. The local-flavor 10th Street Market food court features favorites like two Guy Fieri outlets—Guy’s Burger Joint and Guy’s Taco Joint—Morty’s Deli, Luckie’s Liquor and Termini Brothers Bakery (a 99-year Philly institution). The 208-room luxury hotel features state-of-the-art technology in rooms at various price points, including two levels of suites offering killer views of the city—providing one more factor distinguishing the new property from others in the Philadelphia region. “We were the first casino development in the commonwealth to actually build a hotel with with its development,” Billhimer says. “I think our location has poised the market for growth.” Highlights of the casino include unique offerings such as the Sports & Social brand wrapped around the Cordish FanDuel Sportsbook concept—sports wagering in a best-in-class sports bar, featuring a 500-foot-long LED screen and different styles of entertainment. There’s even a large foosball table. “Here in Philadelphia, we’ve been able to integrate the FanDuel experience into Sports & Social, and we feel that gives us an incredible point of differentiation versus other experiences,” says Cordish. “And it’s something that we’re going to lean into heavily in our casino properties and other entertainment districts. We have a Sports & Social well under construction now at Maryland Live!, and we’ve used Sports & Social as a tremendous growth vehicle around the country.” Other highlights of the main casino reveal the unique Cordish touch. One signature feature is the R Bar, a unique interactive area featuring electronic table games arranged facing a 40-foot-long video screen. First conceived in the Maryland Live! property, the R Bar presents all 74 of the property’s dealer-assisted ETGs in a pit configuration that puts the live dealers in front of the attraction. The ETGs offer players the opportunity to play two blackjack games, two baccarat games and roulette, all at the same time. The R Bar concept features what Billhimer calls “probably the most aggressive Interblock Gaming portfolio out there” in a configuration that has been copied liberally by other operators. “It’s a very interactive area with a great sports bar,” he says, “with the game offerings of Interblock arranged in a stadium style.”

Luk Fu 18

Global Gaming Business MARCH 2021

Other highlights of the casino include the two high-limit gaming rooms, each with its own private bar, its own cage, and personalized service. The slots—denominations ranging from $1 to $500—are each situated in a private, Plexiglasenclosed station. According to Norton, while the private stations provide safety against spread of the Covid-19 virus, they actually were designed before the pandemic hit, simply as a way to give the best slot players their own space. Everything in the new casino points to the elevated Center Bar, another sports-themed bar with giant LED TV screens, communal tables, lounge seating and live music, offering a 360-degree view of the gaming floor. Each of the property’s 121 table games is equipped with ticket-in/ticket-out pay technology, allowing players to buy in with a ticket and cash out at a kiosk. According to Norton, the property’s Aristocrat Oasis casino management system is equipped to offer completely cashless play in the near future. This technology at the tables, which reduces player/dealer touchpoints and cash-handling, is only one aspect of an operation designed with maximum safeguards against the spread of the Covid-19 virus. Upon entering the casino, all guests and employees pass by thermal cameras to detect anyone with a fever. Once inside the casino, the sea of Plexiglas is striking, with barriers between slot games and in front of dealers at every table. Hand sanitizer stations are everywhere. It’s all part of “Play It Safe,” the program initiated at the Maryland Live! property early last year to effect a safe return to operations following the pandemic shutdown.

iGaming Assist The new properties in Pennsylvania follow one more important precedent set in Maryland—building a database online. In an industry first, Cordish launched PlayLive!, its Pennsylvania online gaming site, ahead of the opening of the physical property.

The Prime Rib

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Congratulations to the Cordish Companies on the two new properties in Pennsylvania.

We are glad to be part of the team!

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Prior to the 2012 opening of Maryland Live!, Cordish launched a free-to-play social casino that allowed customers to become familiar with the Live! brand and to join the Live! player’s club online. This time, the site, launched in August, is a formoney iGaming site, utilizing the GAN online gaming platform. “We got about a five-month head start, and we started to build brand awareness and brand loyalty in the online space, all while giving opportunities for those customers to earn entries into the grand opening celebrations and all kinds of other prizes,” says Norton. “That was just one of a number of efforts to try to build the database quickly on the front side.” Norton adds that the GAN iGaming platform is another holdout from Maryland. “GAN was the platform that we chose back in 2011 to launch the play-for-free site in advance of Maryland,” he says, “and they’ve been our partners ever since we expanded into real-money online gaming. We did an exhaustive search of platforms, and we felt GAN gave us the best opportunity to deliver the product, the quality and the speed that we were interested in putting it into market. They’ve been good partners, and continue to refine the product.” The success of the Live! Philadelphia casino stands to grow quickly as the Covid-19 pandemic subsides—particularly when the major sports teams resume play with full attendance, when the Stadium District is typically crowded with fans and Cordish’s own Xfinity Live! attraction a couple of blocks from the

Global Gaming Business MARCH 2021

casino is packed with customers. “Just imagine 80,000 or 90,000 fans coming in for an Eagles game, or any of the other sporting events here, and you know it’s going to play a large role here in Philadelphia,” says Billhimer. The operator has marketing partnerships either in place or in the works with all Philadelphia professional sports teams, as well as in Pittsburgh. However, in Philadelphia, the sports angle combines with the hotel to transform the property into a regional draw. “I think we’re absolutely a local/regional destination here for the South Jersey/Philadelphia metro market, but we’re going to extend our reach, given the fact that we operate in the Stadium District with four major-league teams, and visiting fans from major cities across the country,” says Billhimer. “We’re going to reach out to those individual cities and and extend our marketing arm out that far, and in conjunction with a lot of other Cordish Live! district developments in some of the other cities.” “We’re treating the Philadelphia Live! casino as a true destination resort,” says Cordish. “It’s going to have great energy and expectation for our local customers, but I expect we’ll see people come here from 200 miles out. And, with the partnerships that we’re building with the teams here in the stadium entertainment district, as people come in from out of town, we have a world-class hotel, we’ve got a world-class casino, we’ve got incredible restaurants and enter-

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tainment, and we have the game. “This is going to be one of the more exciting places you can come see a game anywhere in the country and have an experience that beats out your typical tailgating.”

Growing the Brand While 2021 will no doubt be consumed with refining operations at the two new Pennsylvania casinos, Cordish is by no means finished expanding the footprint of the Live! brand. Upcoming projects include several in the U.S. and even internationally. The company is in a partnership with Caesars Entertainment to develop land at the Pompano Park race course in Florida, which also houses an Isle of Capribranded casino. “We think it’s one of the great development sites out there—200 acres in the heart of South Florida,” says Cordish. “Caesars has the existing casino, which is currently being upgraded and expanded. It will be the center point around which we’ll build this large development. “We just successfully went through the entitlement process and can build something really spectacular, with up to 4,000 residential units, with a great Live! entertainment district mixed-use component. We’re very, very excited about that.” Other projects include Ballpark Village, a non-gaming mixed-use retail and entertainment project at the St. Louis Cardinals’ Busch Stadium. “Being part of the Cordish Companies allows us to do things that other casino companies can’t do,” comments Norton. “They are true developers, and everything is integrated with the Cordish development team. As we are looking at the other markets where sports betting is approved, we have the ability to do things

quickly, and at a level I think our competitors are going to struggle to keep up with.” Cordish says the company also is open to further expansion of the Live! brand in the way of casino projects. “We are approaching the Live! brand holistically,” he says. “As we look at the benefits, the rewards, the tier structure, and all the benefits of being a Live! Rewards member, that comes with multi-property benefits. The casinos are all linked. They’re all in one database. You earn in one place, you can redeem in another. And we are actually rolling that out here for the first time to allow the Live! Rewards points to redeem complimentaries and get benefits at the Xfinity Live! location. As we continue to expand the casino footprint, I think we’ll see that growth go into all the markets.” As for possible new casino projects, “we’re definitely keeping our eye open for opportunities that make sense for us,” Norton says. “I’m hopeful that we’ll see growth opportunities, both greenfield and from acquisition in the future.” “Speaking for my family, we would love to see the gaming division of our company grow,” says Cordish. “Whether that’s through new construction, sports wagering or through acquisition, we think the gaming division has done a wonderful job, and should continue to grow.” Meanwhile, Cordish will continue to polish its new Pennsylvania gems, and to apply the Cordish formula to that effort. Norton says that formula is to consider entertainment first, everything else second. “Everyone who comes into the organization embraces the fact that Live! means it’s an entertainment concept first,” he says. “It’s not a casino; it’s not about slots. It’s about the experience. And I think we bring that to the table unlike any other company out there.”

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FOCUS ON: RESPONSIBLE GAMING

First Do No Harm Digital gambling payment methods and harm minimization policy considerations By Sally M. Gainsbury and Alex Blaszczynski

igital payment methods have gained increasing traction in recent years with the introduction of tap-and-go debit cards, ewallets (e.g., Apple Pay, PayPal and Google Pay), and the rise in wearable and mobile devices, allowing frictionless and contactless purchases at retail and online stores. Superimposed on this trend is the Covid-19 pandemic that has highlighted the potential health risks of handling cash in spreading infections, and consequently has accelerated the transition of customers and retailers embracing digital payment methods. On the advice of health authorities, governments acted to recommend businesses and customers use contactless digital payment methods (that is, avoidance of handling cash) to minimize potential transmissions of the Covid-19 virus. The gambling industry is one of the only industries which has a regulatory requirement to avoid the adoption of digital payments; consequently, most gambling venues internationally are heavily reliant on cash transactions, although there are distinctions between gambling and nongambling spend. This requirement to use cash at gaming machines and tables in venues is at odds with the increasing shift in consumer preference and technological advances supporting digital transactions. The Covid-19 crisis has accelerated existing international trends relating to the increased adoption of digital payment methods, and the reduced use of cash suggests that in the near future, gambling regulators will have to respond to the increasing demand for digital payments for gambling. This article aims to outline the fundamental principles and guidelines informing how policies designed to enable digital payments for gambling can mitigate potential risks through effective harm-minimization components. This article comes at a critical time when the current health crisis is accelerating existing consumer preferences and influencing regulatory de22

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cisions and industry preferences, and questions are increasingly considered as to whether the use of cash will become obsolete in an increasingly digital economy.

Trends Toward Digital Transactions Digital (also referred to as cashless or electronic) payments are typically transacted through registered or anonymous accounts. These include totally digital payments through e-wallet accounts (digital stores of personal details and payment information) and temporary or established accounts tied to dedicated physical cards (magnetic stripe or chips recording transactions linked to accounts funded by cash or through electronic transfer) or tickets (ticket-in, ticket-out). Wins are redeposited directly into the account or recorded on the ticket for subsequent redemption, again either as cash or through electronic funds transfers. Digital payments include the ability to use a card or device to directly transfer funds from an individual’s external account to a gambling product, without the deposit of funds to a gambling- or venue-specific account—for example, tap-and-go or use of PIN numbers. Irrespective of the modality used in digital payments within venues, each poses different challenges and opportunities for consumer protection and harm minimization. Although digital gambling can use credit cards, this facility will remain outside the scope of this article, as the ability to bet with credit is currently not consistent with a harm-minimization perspective—although this may change over time as credit cards and financial institutions incorporate more consumer protection measures and consumers adapt more sustainable use of credit. Cash is becoming a niche payment instrument, with 2.1 billion consumers worldwide expected to use a mobile wallet to make a payment or send money in 2019. Globally, preference for and use of cash varies, with some countries such as South Korea and Sweden transitioning to a digital

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Australian data found that the withdrawal of cash from ATMs was 32 percent lower in April than February 2020, debit card use grew 16 percent, and use of digital wallets doubled.

society and other countries such as Germany demonstrating low adoption. As reported by Harvard Business Review, cash represented just 30 percent of all payments within the U.S. in 2017, although 70 percent of Americans still report using cash on a weekly basis. Within Australia, before the Covid-19 crisis, cash represented 27 percent of all consumer payments in 2019, compared to 37 percent in 2016 and 69 percent in 2007. Around one-third of consumers did not record any cash payments in a 2019 survey, compared to 18 percent in 2016. Since the Covid-19 crisis, authorities, including the World Health Organization (WHO) and U.S. Center for Disease Control and Prevention, have encouraged consumers to switch from cash to contactless payments to restrict the risk of virus transmission. Since the crisis, consumers appear to increasingly eschew cash; a U.K. survey found that 76 percent of respondents intended to reduce cash payments because of the coronavirus emergency and 54 percent were actively avoiding cash. Australian data found that the withdrawal of cash from ATMs was 32 percent lower in April than February 2020, debit card use grew 16 percent, and use of digital wallets doubled. Studies have demonstrated cash can contain hundreds of species of microorganisms and pathogens which can lead to serious diseases. Although the WHO has indicated that cash is not a specific concern in terms of disease transmission, exchange of and access to cash between customers and venue employees, including queuing to access cash, often violates recommended social distancing guidelines.

Digital Transactions and Excessive Expenditure in Gambling The preference for the use of cash in gambling is often predicated on physical cash being a tangible way of limiting expenditure, and the capacity for cash to impose breaks in play as a self-reappraisal harm-minimization strategy. After initial funds are depleted, physically obtaining additional cash typically requires the customer to leave the immediate gambling activity, often moving away from the gambling floor, requiring physical movement and/or contact with venue employees and passing other activities, which provides an enforced break and opportunity for reflection. Enforced breaks may account for the reduction in gambling revenues in several jurisdictions, as demonstrated following the implementation of smoking bans in venues, and reduced gambling is evident after enforced breaks in online gambling. Withdrawing additional funds assists individuals to mentally “pre-commit” to spend only the amount of cash that they bring to the venue and/or deliberately consider how much additional funds they will spend. Expressed concerns for digital gambling are based on the argument that immediate access to cash removes these breaks in play, which has the potential to exacerbate gambling-related harms through ready access to additional monetary funds. Digital transactions are argued to foster the capacity for individuals losing

control of urges to make impulsive decisions, to spend more than initially intended and rapidly replenish funds to chase losses when in an emotionally “hot state.” Easy access to funds, such as through close proximity to ATMs, is also correlated with increased spending by individuals with gambling problems. Conversely, bans on ATMs resulted in 50 percent of moderate- to high-risk gamblers, and 30 percent of low-risk gamblers reporting an increased level of expenditure control. Another concern is that individuals may place a diminished value or have lower awareness of amounts spent using digital payments as compared to cash. Research outside of the gambling field consistently demonstrates that consumers tend to spend more and are less aware of their expenditure when transacting electronically compared to when using cash. In the online gambling context, there is some evidence that the use of digital payment methods (notably including credit cards) contributes to overspending and problem gambling for some individuals. Some jurisdictions have limits on the maximum value of banknotes which can be inserted to gambling products or deposited at one time. Financial institutions are increasingly facing calls to implement consumer protection measures, and some banks (e.g., in the U.K. and Australia) have started offering customers the option to limit or block gambling transactions from their accounts.

Digital Transactions as a Harm-Minimization Strategy Critically, to offset the potential harms which may be created by digital payment systems, strong harm-minimization features must be implemented within these systems. In contrast to cash payments, digital transactions contain features that can be effectively used to advantage as a means to prevent or detect excessive expenditure among individuals. As opposed to cash, electronic transactions can be readily tracked, and expenditure patterns made available through player activity statements. Digital payments enable automated play monitoring, improving detection of indicators of risky gambling and real-time interventions, including customer alerts or notifications to venue employees prompting intervention. Customers should be encouraged via messages or other methods to physically leave the gambling product at set intervals, to avoid the opportunity to continuously gamble with no interruptions, including running out of funds, and to provide an opportunity for customers to reflect on whether further gambling is appropriate. Digital gambling payment systems may enable other harm-minimization interventions such as pushing or requiring educational modules to be completed. To achieve the optimal infrastructure for digital transactions, the principles of consumer protection should focus on the following elements that include the cooperation of financial institutions, industry and government agencies, taking into account privacy protection. These principles can inform policies and identify the relevant stakeholders that can collaborate to

MARCH 2021 www.ggbmagazine.com

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FOCUS ON: RESPONSIBLE GAMING The gambling industry should implement software to monitor and

detect indicators of excessive gambling

achieve the behavioral outcome of sustainable (responsible) gambling—that is, gambling within personally affordable levels. These principles apply to the process of initial creation of accounts, protections available during play, and monitoring and tracking expenditure within and across sessions. • The use of digital transactions should incorporate mandatory age verification requirements. Digital payment facilities must be restricted to adults age 18 (19 or 21 years subject to its jurisdiction), and account holders must be verified using accepted identification documents. • All deposits to an account should require a set waiting delay period before they can be used for gambling. This is essential to avoid immediate access to funds to continue to gamble when in an emotionally volatile state. • There should be default limits on the maximum that can be transferred to an account at any time. There should be no limits on the amount which can be withdrawn from an account or delays in withdrawals being processed. • It must not be possible to access cash from accounts within venues, which may be used as a way to overcome limits on ATM and cash-withdrawal facilities. • Accounts must be linked to a central self-exclusion registry which applies across venues. The use of digital payments should allow for easier realtime identification/detection and suspension of individuals breaching self-exclusion agreements. • Customers must be able to set customizable limits on time and money spent over a week/month in real time and should be encouraged and ideally incentivized to use these. Applications to increase limits should be subject to appropriate delays per time period while reductions of limits should be implemented immediately. Individuals should be able to set temporary timeouts, implemented immediately. • There should be made available through financial institutional facilities the capacity for individuals to set money limits. To minimize impulsive gambling, digital facilities can be set at default maximum limits in gambling venues as is currently the case for in-venue ATM and cash withdrawals. Increases in limits should be approved by financial institutions as is currently the case for credit and debit card withdrawals. • All digital transactions should be recorded and summarized in player activity statements that are provided in real time, including clear graphic displays of net wins and losses. If external accounts are used, the merchant code category should be linked to expenditure, and financial institutions should be encouraged to provide clear summaries of all funds spent on gambling. • Digital payments linked to an account allowing for real-time tracking for risk indicators and systems have the capacity to send personalized messages via SMS to mobile devices, directly to electronic gaming machine screens, to notify venue staff to initiate interactions with players, or to an individual nominated by the customer. Applying these principles will address concerns regarding the impulsive

immediate access to additional funds by requiring daily withdrawal limits and/or delays in gambling with any funds deposited. Large wins could be automatically, or optionally automatically, deposited into player accounts rather than remaining on gambling devices and quarantined from further expenditure on gambling-related merchant codes for a period of time. Systems may enable further customization, for example, enabling players to select the maximum amount stored in their accounts, with automated withdrawals of funds over a specified level back to external accounts. We note that some of these principles are restrictive, and many are untested and lack specificity in terms of details for implementation. As such, we recommend research to trial these recommendations to ensure that they achieve the intended objective of minimizing gambling-relating harm, do not overly restrict consumers who do not experience gambling harms, or have unintended negative consequences. We strongly encourage all stakeholders to engage in dialogue and contribute resources towards independent research trials to inform policies and to commit to acting on the emerging evidence. Although outside the scope of this article’s focus, the capacity to track transactions reduces money laundering, fraud, violence, and the involvement of criminal organizations reliant on untraceable cash movements. Reducing use of cash is one of the central strategies recommended to combat the “black economy.” There is very limited direct evidence of the impact of payment methods on gambling harms. In Norway, the Norsk Tipping gambling monopoly created a model in which players must use a “player card” at digital terminals. This card requires age verification and enables optional behavioral tools such as personal limits on time and spending. After this change, among others, there was a reported decline in the proportion of low-risk gamblers from 10.9 percent in 2008 to 8.6 percent in 2010. In Sweden, there are no restrictions on the use of digital payments, and longitudinal research suggests that problem gambling rates have declined. Despite the exponential increase in online gambling, which is almost entirely based on digital payments, problem gambling prevalence rates internationally have held steady or declined, although online gambling is associated with the experience of gambling problems. These findings suggest that digital payment methods are not necessarily harmful; however, the prevalence of gambling problems is influenced by numerous factors, and more specific research is needed to determine the impact of gambling payment methods.

and proactive interventions to manage customers identified as being at risk

of experiencing gambling harms.

Global Gaming Business MARCH 2021

Digital Transaction Policies: Implementation Issues Policies for digital gambling payment systems have to consider implementation issues. Relevant stakeholders should collaborate in a timely fashion to create an appropriate scaffold in which digital payments overcome the limitations of cash. Government agencies and regulators should develop policies based on evidence or precautionary principles in anticipation of the widespread use of digital payments, and engage with researchers as well as gambling and financial/ payment industries.

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FOCUS ON: RESPONSIBLE GAMING Security and privacy concerns are important issues to address and elicit consumers’ confidence. An international survey found 50 percent of respondents reported using cash to make payments for the specific purpose of not leaving a

record of their purchase.

Financial institutions are in an ideal position to identify individuals on welfare or whose patterns of gambling expenditure cause and/or contribute to financial difficulties, and should be involved in conversations on how to implement digital payment systems with consumer protection features. The gambling industry should implement software to monitor and detect indicators of excessive gambling and proactive interventions to manage customers identified as being at risk of experiencing gambling harms, which is an important part of a sustainable business model as well as corporate social responsibility. For some venues, there will be considerable costs and resources required to become technically able to facilitate digital payments. Security and privacy concerns are important issues to address and elicit consumers’ confidence. An international survey found 50 percent of respondents reported using cash to make payments for the specific purpose of not leaving a record of their purchase. Many jurisdictions now use apps for government-issued identification and to secure private and sensitive data such as medical and taxation information (e.g., Australia’s MyGov site). The Covid-19 crisis saw numerous international jurisdictions request (or mandate) that individuals download a contact-tracing app collecting geolocation information with varied success. Additional layers of security may include two-step verification methods and biometric authentication such as facial recognition or fingerprint to prevent card swapping. Some population subgroups may be less inclined to use digital payments; for example, there appears to be a generational divide with younger generations and those in major metropolitan areas more likely to use digital payments for retail spending. Differences between other groups, including based on culture, education and socioeconomic status, have not been studied but are important to consider. Nonetheless, consumers and businesses are increasingly adopting digital methods for retail activities—for example, with loyalty cards commonly accessed through apps. There are many issues which are beyond the scope of this article but relevant for policy considerations, such as anti-money laundering considerations and how payment systems will work across operators and gambling activities. There is limited scope for fundamental innovations in the cash system, compared with the scope for dynamic innovation in digital payments. Steps towards digital payments within gambling venues are already being taken by several jurisdictions. This article intended to highlight basic principles to inform policymakers in making sure that any policies and practices do not exacerbate problem gambling but implement interventions likely to minimize gambling harms. To achieve optimal frameworks for digital transactions in gambling, trials should be conducted with the collaboration of governments, financial institutions and industry to pursue effective evidence-based policies that represent bestpractice consumer protection and harm-minimization strategies. What is required is greater clarification of the following questions: 1. Is there a map of digital payment options available in gambling venues across international jurisdictions and their utilization rates? What strengths and weakness have been identified? 26

Global Gaming Business MARCH 2021

2. What is the current state of technology available to enable digital payment options within land-based gambling venues? 3. What are the risks of digital payment options in terms of increasing unintended gambling harms? 4. What are the potential benefits and opportunities for digital payment options to minimize gambling harms? 5. Which consumer subgroups may require special consideration in relation to the impact of digital payment methods on gambling-related harms? 6. What regulatory issues need to be addressed in order to achieve maximum benefit from digital payment methods and minimize any harms?

Conclusion It is inevitable that digital transactions will replace cash usage in the foreseeable future. It is timely that gambling regulators in collaboration with financial institutions, government, treatment providers and industry collaborate to establish the fundamental principles and policies promoting consumer protection and the minimization of gambling-related harms. Some stakeholders are already progressing these conversations. For example, both the National Council on Problem Gambling and the American Gaming Association have released guidelines for payment processing. Some payment systems and operators are already considering ways in which digital payment systems may contribute to consumer protection efforts, and we hope that the industry will further its engagement with researchers and policymakers to promote these. Further efforts will be needed beyond those embedded within a system—for example, efforts to raise awareness among consumers of the potential risks involved in digital payments and increasing the role of financial institutions in providing consumer protection measures. In summary, digital payment systems for gambling should include strong harm-minimization features with evaluations carried out to determine the extent to which they are utilized and reduce gambling harms prior to and following implementation. As customer preferences and technological advances change the way in which payments can be made for gambling products, the opportunities for harm minimization must be at the forefront of innovation. Sally M. Gainsbury is an associate professor in the School of Psychology, Science Faculty, and co-director of the Gambling Treatment and Research Clinic at the Brain and Mind Centre at the University of Sydney in Camperdown, Australia. Alex Blaszczynski is a professor in the School of Psychology, Science Faculty, and co-director of the Gambling Treatment and Research Clinic at the Brain and Mind Centre at the University of Sydney in Camperdown, Australia.

Editor’s Note: This article first ran in Gaming Law Review, Vol. 24 No.7. For a full version of the article, including footnotes, visit www.liebertpub.com.

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RESPONSIBLE GAMING

Follow the Money Responsible gaming advocates need more influence if they are to succeed By Richard Schuetz

“All of the money you made will never buy back your soul.” —Bob Dylan

ver the last few years, it has become increasingly difficult to be startled by the daily news. I will admit, however, that when the Texas Tribune recently ran a story suggesting the late Sheldon Adelson had engaged 51 lobbyists in the state over the course of several months, spending millions of dollars in fees to lobby for casino gaming, well… I was taken aback. That is a lot of people and that is a lot of cake, remembering that when I started in the business you could damn near build a casino for the kind of money that is being thrown at the lobbyists in Texas. Also in the news of late have been stories of the phenomenal sums that have been spent on the recent election and related events following the election. And, it has been revealed that a few politicians who recently announced their retirements say that one of the motivations for the decision is the extraordinary and never-ending effort needed to continually raise money in order to remain relevant and stay in the system. In line with this is the fascinating language of “being primaried” that we are all learning. This expression suggests if a politician does not do what the monied interests want him to do that they will defund the existing politician and buy another one to take his or her place. The point is, our political system is awash in donor money, and surprisingly enough, most of those people who provide money to lobbyists and politicians want something of value in exchange for their expenditures. When I was a child, I had an iron contraption that was comprised of a metal base with a cast-iron bear on it. It functioned as a bank. I would hustle a coin from someone and put it into the coin slot and pull a small lever. The coin would fall into a locked container below and the bear would dance (spin around). I do believe this

succinctly represents our modern political situation, in that if one gives a politician money, the politician will dance for a bit as the money disappears. My frustration with this situation is that the public policy initiatives impacting gaming that politicians need to address don’t always get done because no one is throwing tons of money at them. It seems the politician’s behavior is essentially always transactional and not about doing the right

It seems the politician’s behavior is essentially always transactional and not about doing the right thing. This does not sync well with what should be of paramount importance to the gaming industry, and that is supporting public policies that work toward industry sustainability.

“

”

thing. This does not sync well with what should be of paramount importance to the gaming industry, and that is supporting public policies that work toward industry sustainability. Two things I believe are critical in the gaming industry for creating sustainability are quality regulation and working to ensure that there are protections for the vulnerable. I do not see these two goals being pushed by well-funded lobbying efforts—and that is unfortunate, for most legislatures have become, to use the term coined by conservative writer P.J O’Rourke, a “parliament of whores.” When it does come to good regulation and protections for the vulnerable, I have noticed the approach is very much like discussions about the weather in that everyone seems to talk about it, but

nobody seems to do much about it. I believe that what needs to happen in the areas of regulation and protections for the vulnerable is politicians need to learn how to do the right thing. This is about that thing called leadership. While it is hard for politicians to line their pockets by doing the right thing, it actually should be considered an essential part of the job. I am not optimistic, however, for I just moved back to Pennsylvania and noted several newspaper articles discussing the recent appointment of a Pennsylvania Gaming Control Board commissioner. These articles basically suggested political favoritism and little else was very much a part of the appointment decision. Moreover, one does not want to forget early last year when the governor of Nevada moved to gut a very small, earmarked fund dedicated to protecting the vulnerable. I believe that had there been a well-funded effort to threaten the person who appointed the new commissioner in Pennsylvania with being primaried if the politician did not appoint a truly qualified and competent candidate for the commission, or if the governor of Nevada was told by his largest donor to not mess around with the funding for the problem gambling program—well, I believe that things would be different today in Pennsylvania and Nevada. The point that needs to be understood is that our politicians cannot just wait until someone inserts a coin before they will begin to dance, for there are times they simply need to do the right thing. This is true with respect to sustainability-enhancing actions like providing quality regulation and supporting viable programs for protecting the vulnerable. It is called leadership, and it would be nice to see more of our politicians give it a try. Richard Schuetz started dealing blackjack for Bill Harrah 47 years ago, and has traveled the world as a casino executive, educator and regulator. He is sincerely appreciative of the help he received from his friends and colleagues throughout the gaming world in developing this article, understanding that any and all errors are his own. MARCH 2021 www.ggbmagazine.com

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FOCUS ON: RESPONSIBLE GAMING

Better Safe Than Sorry Cashless payments have great promise as a deterrent to problem gambling, but could also exacerbate some issues By Marjorie Preston

I “The Covid-19 pandemic made it all the more important to advance our efforts to provide customers with the payment choice they are more comfortable with and have increasingly come to expect in their daily lives.” —Bill Miller, President and CEO, American Gaming Association

n 2008, researchers at the University of Arizona published a list of the 10 most germ-ridden workplaces. According to the study, teachers and day care workers have the dirtiest jobs, dealing day in and day out with rugrats and runny noses. Perhaps surprisingly, the No. 2 spot is occupied by cashiers and bank tellers. That’s right— people who handle coins and bills have a germier job than garbage collectors and health care workers (two other professions that made the Top 10). Kids and cash are rich sources of germs. But in most industries, dirty money has been supplanted by credit cards, e-wallets and other cashless payment options. The drive toward cash-free transactions has accelerated in the Covid-19 age, including in the once cash-dependent casino industry. “Gaming is sort of the last stronghold of cash,” says Keith Whyte, executive director of the National Council on Problem Gambling (NCPG). “Our concern is that a lot of states and companies are rushing to expand cashless payments without really studying or even thinking about the potential downside”—i.e., whether cashless payments could increase the incidence of problem gambling.

Too Easy to Spend To everyone who did their holiday shopping online, it seems obvious that payment solutions like PayPal, Apple Pay and Google Pay make it easier to spend—and possibly overspend. PayPal, for instance, requires a one-time setup, which links the payment solution to a bank account. Then it’s just a matter of pulling the trigger, again and again and again. While shoppers know there’s a reckoning ahead, somehow the ease of the transaction makes spending seem—well, irresistible.

Global Gaming Business MARCH 2021

Common sense suggests that, as cashless technologies become more commonplace and easier to use, they could heighten the risk of problem gambling. But there’s very little research to back up that assumption. In 2020, the International Gaming Institute (IGI) at the University of Nevada, Las Vegas launched the IGI Payments Collaborative to analyze the industry shift to cashless wagering. The collaborative, along with payment technology and software providers Sightline Payments and Global Payments Gaming Solutions, have joined forces to provide “a scientific, datadriven foundation for policymakers and regulators to make sound decisions in the future.” “Prior to Covid, there were a lot of concerns expressed about how cashless systems in the gaming environment would affect responsible gambling and/or problem gambling,” says Alan Feldman, distinguished fellow in Responsible Gaming at IGI. “I was one of those people expressing concern, and I think the concerns are very well-founded. “But the reality is, there are very few facts or evidence that anyone can point to, so nothing can be proven out. At the Gaming Institute, it’s incumbent upon us to do something rather than wait for a jurisdiction to come to us and say, ‘Help us understand it.’” To date, Feldman says, the vast majority of player-data research has been based on laboratory studies, in which researchers create computersimulated games, stake a certain amount of faux cash to study participants, and then watch them as they play. Not exactly a real-world sample. A notable exception is a five-year Harvard Medical School study, funded by U.K.-based online gaming giant GVC, that was established in 2019. GVC turned over reams of actual player data for

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The vast majority of American gamblers enjoy the pastime recreationally and responsibly. For the estimated 2 percent of players who have a problem, easier, quicker and so-called “frictionless” access to cash may be perilous.

analysis from its sports betting, online gambling and poker operations to the school’s Division of Addiction. Sightline and Global Payments will do the same at IGI. “You have to start with the basics,” says Feldman. “Who’s using these systems? How are they using them? How often are they using them? How much are they actually transacting? What’s the decline percentage? On a panel recently, one expert said that, of all ATM transactions in casinos, 50 percent are declined due to insufficient funds. Well, it took one phone call to determine that’s not even close. “We need publishable data you can point to and say, ‘This is the reality,’” Feldman says. “Absent that, these conversations spin off into political speak, and that’s not a good way to create public policy.” Omer Satter, one of the co-founders of Sightline, believes by working together, the cashless providers can advance the discussion. “The rapid digital transformation happening in all verticals of gaming means more than ever that we must fully and comprehensively study, understand, and act upon what this changing world means for responsible and problem gaming,” he says. “The IGI at UNLV under Bo Bernhard and Alan Feldman is uniquely positioned to collaborate with industry towards this goal.”

From ‘At-Risk’ to Endangered? The vast majority of American gamblers enjoy the pastime recreationally and responsibly. For the estimated 2 percent of players who have a problem, easier, quicker and so-called “frictionless” access to cash may be perilous. “The menus and features that make cashless gambling exciting for consumers and lucrative for the industry are the very same features that can push gamblers into problems: removing barriers,

easing the speed and size of transactions,” says Whyte. “It’s like substance abuse—eventually, it takes more and more to achieve that high. Though people may have underlying psychological problems, money is what fuels the addiction. With access to more money, they can use it much faster. That fuels the flame.” In fact, Whyte says, readily available cash sources “shift at-risk gamblers into the problemgambler category.” The coronavirus outbreak has pointed up the potential dangers of using cash and increased the demand for cashless systems. Earlier this month, Nevada regulators approved the first carded cashless model for slot play in casinos, from industry giant IGT. Bill Miller, president and CEO of the American Gaming Association, said last year that advancing digital payments was a top priority of the AGA. “It aligns with gaming’s role as a modern, 21st century industry and bolsters our already rigorous regulatory and responsible gaming measures,” he said. “The Covid-19 pandemic made it all the more important to advance our efforts to provide customers with the payment choice they are more comfortable with and have increasingly come to expect in their daily lives.” It’s a potential rush to implement these systems that concerns Whyte. “When they remove the daily limit on debit transactions as well as the limit on number of transactions a day, you can swipe your card theoretically every five seconds. We’re now seeing innovations in what they call cashless markers, like applying for a credit. It’s given to you on a cellphone. It’s like writing a bad check. These are radical changes in gaming payments, but there is no study on the potential impact on problem gambling.”

“We need publishable data you can point to and say, ‘This is the reality.’ Absent that, these conversations spin off into political speak, and that’s not a good way to create public policy.” —Alan Feldman, Distinguished Fellow in Responsible Gaming, International Gaming Institute, University of Nevada, Las Vegas

“Our concern is that a lot of states and companies are rushing to expand cashless payments without really studying or even thinking about the potential downside.” —Keith Whyte, Executive Director, National Council on Problem Gambling

MARCH 2021 www.ggbmagazine.com

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Going LIVE Live-dealer online games saw a spike in popularity during the shutdown, but they were headed that way before the pandemic.

Here’s why.

By Marjorie Preston

n 2020, casinos around the world were forced to close for months. When they reopened, it was with limited games and occupancy levels that are still in force today. A concurrent spike in iGaming, often linked to the shutdown, was actually under way before the pandemic. New Jersey, for example, saw an increase of 87 percent in iGaming revenues between November 2019 and December 2020. And while much of the chatter lately has been about the rise of sports betting, last November iGaming in Jersey pulled in 82 percent more than mobile sportsbooks. As Josh Swissman of the Strategy Organization recently told the Las Vegas Review-Journal, “iGaming is really where the potential bigger impact is… The iGaming customer is much more valuable.” Which brings us to live-dealer online games, hosted in real time by real people from brick-and-mortar casinos or remote studios. Though these games predated the pandemic, they may be especially well-suited for the Covid era, offering a fusion of land-based and virtual gaming that serves two cohorts: gamblers who’ve always preferred gambling online, and casino fans who can’t or won’t visit a physical property right now, or are going less often. With live-dealer games, blackjack, baccarat, roulette and so on are played as they would be in a real casino, but by online players in virtual seats who can communicate via online chat with the dealer. As the dealer draws the cards, each one is swiped over an electronic scanner that transmits the face to the players.

Why Live? A growing number of players prefer live-dealer games to those powered by a random number generator (RNG), for a couple of reasons. For some, watching a human being draw the cards in real time gives them greater confidence in the integrity of the game. Some like the personal 30

Global Gaming Business MARCH 2021

touch of seeing and live-chatting with an attractive dealer, male or female; it’s closer to the communal, social experience of a gaming floor. Then there’s the simple fact that most of our activities, including entertainment, have migrated online, at least in some form. “Video is dominating everything right now, so it’s natural that it would be popular in gaming too,” says Todd Haushalter, chief product officer of Evolution Gaming, one of the biggest players in the space. Founded in 2006, Evolution matured in Europe and now has a growing presence in the United States, with live-dealer games in New Jersey, Pennsylvania, West Virginia and Michigan. “TikTok, YouTube, Netflix… This is just how people want to consume today,” says Haushalter. “If I had to bet my paycheck on a digital game or a live game, you bet I’d pick the live game.” With improved technologies, live table games can play as well on a palm-sized screen as on a tablet or a desktop, he says. “All design defers to the one-handed phone player; even the studio is designed to be narrow to optimize for this view. Almost all of our games now involve zooming and multiple cameras to create a lifelike, immersive feeling that builds trust and brings you into the game.” Interestingly, he adds, “Players can easily turn their phone and get a much bigger, more beautiful video stream, but overwhelmingly, they prefer to play in portrait mode. I see a lot of companies ignore this, and it’s a big mistake.”

“All design defers to the one-handed phone player; even the studio is designed to be narrow to optimize for this view.” —Todd Haushalter, Chief Product Officer, Evolution Gaming .

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have made Wheel of Fortune a perennial hit, on TV, online and on the casino floor. “There’s so much innovation in the live space that’s not present in RNG table or slot games,” Sunderland says. “If you can imagine for us if Jamie Foxx, the frontman for BetMGM, were online in a Q&A session where he teaches blackjack—the opportunities are endless” within the parameters of state regula—Mattias Stetz, Chief Operating tions; he envisions a complete omnichannel convergence of live and retail that Officer, Rush Street Interactive will better serve all players and exponentially grow the base. In a documentary about the development of “Crazy Time,” Haushalter likened the game’s Mattias Stetz, chief operating officer whimsical components—a magical red door, spinof Rush Street Interactive (RSI), which ning gold coins, an animated backdrop reminisutilizes Evolution software for its live cent of Saturday morning cartoons and a host casinos at PlaySugarHouse.com and dressed like a circus ringmaster—to elements from BetRivers.com, agrees that the result is The Wizard of Oz and Willy Wonka and the “as close as you can get online to a real Chocolate Factory. brick-and-mortar casino experience, yet “The idea was to have a game so fun that you’ll it’s the ultimate in convenience. The enjoy just watching it without playing,” he says in games are run in real time and payouts the video. “That was literally the standard we were calculated in seconds, so players online going for. Obviously, it’s better if you play.” Where it’s headed: more live-hosted games along the lines of or on their mobile devices feel as if With Evolution’s recent acquisition of NetEnt, Evolution’s “Crazy Time” could join live table games in the U.S. they’re sitting in a real casino while actuthe world’s biggest online slots company, “I’m ally in the comfort of their home.” really excited to bring the worlds of slots and live Enhanced connectivity via 5G and related technologies are expected to casino together for some very fun stuff that I think players are going to love,” he propel the market even more; 5G is expected to have 1.7 billion users around says. “You’ll see this sometime before summer.” the world by 2025, providing broader bandwidth for super-fast downloads, and more reliable connectivity. “If the player has 4G or 5G or clear Wi-Fi, Compete or Complement? they’re going to get a fantastic experience,” says Matthew Sunderland, vice Could the growth of online gaming options and lingering crowd concerns ultipresident of gaming for BetMGM. “The resolution and the speed are unbemately be detrimental to the traditional casino experience? Resorts’ Andrewes lievable.” Of course, RNG games are still popular. “In some cases, you have thinks not. to queue up for a (live-dealer) blackjack game, whereas RNG blackjack is al“It’s been well documented that the online business has done well during this ways available,” says Ed Andrewes, CEO of Resorts Digital Gaming in Atperiod, without a doubt. Live-dealer games have grown at the same rate and perlantic City. Also, some live-dealer games aren’t offered 24/7. RNG players haps more quickly than the overall business, because it was a natural place for the “can take their time and play at their own pace—they’re not waiting to draw bricks-and-mortar players to gravitate while casinos were closed. But lots of studa card or holding up other players at the table as they make a decision.” ies are being done to try to measure the effect of online and the cannibalization Games with a spinning wheel such as roulette can be played by unlimited effect on the bricks-and-mortar market, and in every jurisdiction, across many players across multiple jurisdictions. products, it’s been shown that the two are pretty complementary. “Random-number-generator table games are still popular,” continues “We fully expect that once casinos are fully open and we put the pandemic Andrewes, “but a section of our client base loves the personal interaction of a behind us, players who’ve enjoyed engaging with a live dealer online will come live game, and we’ve seen the migration of some (RNG) players toward the flooding back in. There’s no better retention tool than to give our customers a live dealer, too.” great experience on-property, which makes them loyal to the online brand.” Sunderland tends to agree, with caution. “It depends on how much the retail Wheels of Fortune experience has changed in the eyes of the consumer, and only time will tell, once Blackjack is the most popular live-dealer game in the United States, accordthe casinos get back to full operating capacity and have all their restaurants and ing to Haushalter, followed by baccarat, roulette and specialty games like bars open again.” Three Card Poker and Ultimate Texas Hold’em (roulette is tops in Europe). That said, he adds, “But I think there’s loyalty in customers who go to casiEvolution is focused on building a base around core games in the U.S., and nos, and it will come back. People will probably want some sort of release once then will “layer in more rich game-show concepts.” things calm down, and where better to play than a land-based casino?” The use of the term “game show” is indicative of the games’ direction; in Meanwhile, the audience for online live-hosted games continues to swell. Acfact, Evolution doesn’t refer to its live-game hosts as dealers but presenters. cording to Market Research Future, the global iGaming market will grow at a Like Vanna White, a winning personality may be as vital to their success as 13.2 percent compound annual growth rate based on the 2018 market value of letter-turning (or card-dealing) skills. $119 billion. That’s a lot of seats to fill. “There’s a lot more game show content being worked on for the live enGoing forward, says Haushalter, Evolution “plans to be in every state that vironment,” says Sunderland, who points to Evolution’s “Crazy Time,” rewill have us. The growth has been fantastic, and we’re layering in products slowly leased in Europe in 2020, as a prime example. “It’s basically a game show as we learn what works. I think the growth in the U.S. is going to be phenomenal with a presenter and a spinning wheel that has 100 different values on it; for casino games, because sports betting is popping up everywhere and the dewhere the wheel stops is what you get paid out.” He envisions a trend in mand to bring casino games in next will be strong. which online games like blackjack or live bingo could become much more “It’s a little like YouTube, in that if it always serves you well, you have no deanimated and interactive, with the type of game-show bells and whistles that sire to go elsewhere.”

“Players online or on their mobile devices feel as if they’re sitting in a real casino while actually in the comfort of their home.”

Global Gaming Business MARCH 2021

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The Return of the

Roaring ’20s

As the world recovers from Covid-19, the stage is set for a comeback; will Vegas lead the charge?

By Steve Gallaway and Jack Gallaway

he 100-year anniversary of the Roaring ’20s is upon us as the world finally begins to look toward new beginnings in a postpandemic world. Many have pointed out that the Spanish flu (which preceded the Roaring ’20s) is analogous to Covid-19, presenting a similar potential opportunity for the world to emerge from a pandemic with a new era of historic economic prosperity, which would include a boon to the hospitality, F&B and tourism sectors. As eager as the world may be to return to “normal” life, it is vitally important that safety and health practices do not give way to pent-up demand and impatience. Luckily, customers see a light at the end of the tunnel with vaccines being distributed and certain destinations gradually lifting restrictions. While reintroducing global travel and entertainment will take time, destination markets around the world will look to regain their share of the soon-to-be-rejuvenated global tourism market. With its existing infrastructure, reputation for innovation, and legacy as the gold standard in hospitality, the opportunity presents itself for Las Vegas to return to its heyday as the premier destination for fun. If Las Vegas and other destinations can reach past short-term gains in favor of the longterm opportunity, a return to the Roaring ’20s is here for the taking.

The Spanish Flu in the United States The Spanish flu was one of the most devastating pandemics in recorded history, with many estimating up to 100 million deaths occurred during the pandemic, or roughly 5 percent of the global population at the time. After initially spreading throughout Europe in 1918, the Spanish flu made its way to the United States through soldiers returning from combat in World War I, where the disease spread among troops gathered in close proximity. With all efforts and attention at the national level focused on the war in Europe, individual cities were left to make their own decisions about how to stop the spread of the Spanish flu. Poor decision-making followed in some areas where media and local officials felt pressured to stay focused on the war. This resulted in a wide range and a varying degree of economic and social impacts in cities across the United States. By the summer of 1919, the pandemic began to subside as flu patients either died or developed immunity. Strains of the Spanish flu continued to spread in waves with a less lethal effect, and variants of influenza that exist today can still be traced back to the 1918 Spanish flu. (The first influenza vaccine would not be developed until 1942.) 34

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Economic Impacts and the Roaring ’20s History tends to regard the Spanish flu as more of a symptom of a period marked by limited progress and low morale in the 1910s. With World War I in the limelight, the influenza was largely denied the attention it deserved, which shows in the comparative lack of cultural and historical accounts of the pandemic. Additionally, with the limited technology and resources at hand, scientists of the day lacked the ability to fully understand the influenza while it was so widespread. As the U.S. began to emerge from the Spanish flu pandemic, several concurrent factors contributed to the economic growth and cultural shifts that would characterize the Roaring ’20s. After the war, the American industrial engine shifted from wartime production to Model Ts and radios. Women were granted the right to vote with the suffrage movement and the passage of the 19th Amendment, signaling a major shift in gender roles and freedoms for women—flappers are to this day an iconic symbol of the Roaring ’20s. Prohibition was passed in 1920 through the 18th Amendment, following years of efforts in the temperance movement and other religious causes to ban alcohol consumption in the U.S. Prohibition quickly proved ineffective, with sophisticated bootlegging operations and the emergence of the speakeasy, which fueled the Jazz Age, further cemented the culture surrounding alcohol consumption, and allowed Americans to roar with fun. Interestingly, the repeal of Prohibition would not come until the 1930s, when states had grown in dire need of revenue and economic stimulus. Some could argue that this is directly analogous to the rapid growth of sports betting today as states yet again look for new revenue sources. Overall, the Roaring ’20s were a result of the Western world emerging from a relative period of darkness throughout the 1910s. Still, the economic transition from the Spanish flu into the Roaring ’20s is not commonly understood. Markets were far more limited than they are today in terms of measuring total economic output; GDP would not become a widely accepted measurement until the Bretton Woods conference in 1944. It was perhaps this inability to understand the economy that allowed the rapid growth of the 1920s to remain unchecked and eventually crash at the decade’s end.

Covid-19 Implications It is understood that influenza viruses and coronaviruses are epidemiologically different. Covid-19 patients and flu patients face different symptoms

Avail

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and prognosis, and only so much can be applied from the Spanish flu to the novel coronavirus that the world faces today. However, social mitigation measures have been similar between the two pandemics, and it is clear that the economic impact of a pandemic illness is only made worse by an uncoordinated response. A June 2020 research paper led by two Federal Reserve economists evaluated the impact of non-pharmaceutical interventions (NPIs), such as quarantine, isolation, social and physical distancing, good personal hygiene, and other similar measures. The study assessed the relationship between NPIs, mortality, and manufacturing output in 43 U.S. cities during the Spanish flu outbreak. It found that NPIs were effective in mitigating mortality rates among those cities that implemented them, and that these NPIs did not lead to worse economic performance. It was rather the influenza itself that caused the greatest economic impact, which was thus sustained by uncoordinated and inconsistent efforts to stop outbreaks in certain cities. Despite the challenges that still exist today in implementing pandemic response measures, the modern world can at least benefit from 100 years of scientific and technological advances, as well as a public health policy framework that did not exist in 1918. There are two Covid-19 vaccines already in distribution less than one year since the first U.S. lockdowns were announced in March 2020—a monumental achievement. The modern world is also closely connected through telecommunications that enable contact tracing efforts and public health bulletins to be posted with wide-ranging and immediate effect. So, as the U.S. draws nearer to 500,000 Covid-19 deaths in an economy that remains far from reopened, people are even more frustrated and eager to return to “normal.”

Returning to Economic Growth Unlike in the 1910s, the U.S. economy in the 2010s was characterized by significant growth, with GDP growing at an average annual rate of 4.1 percent, reaching $21.4 trillion in 2019. The nation had reached full employment, discretionary income levels increased with a federal income tax cut, and the gig economy made commercial powerhouses out of the likes of Uber and Airbnb, allowing travel and tourism-related industries to enjoy particularly high levels of growth. Most pre-pandemic estimates indicated that these industries encompassed over 10 percent of the global economy. While the economy continued to grow into the early months of 2020, talk of a potential recession had been circulating for some time prior to the Covid19 pandemic. Given the nature of the business cycle, many felt that there was another bubble looming similar to the housing bubble of the 2000s, but there was little consensus as to the nature of the new bubble or when it might pop. It was Covid-19 that became the unforeseen and unstoppable force that set the economy back, and it was the tourism and hospitality sectors that were among the first and the most heavily hit. Social distancing measures during the Spanish flu undoubtedly resulted in economic losses as well, particularly for venues such as restaurants, bars, theaters and other social settings. However, the global economy of today is far more interconnected than that of 1918, and tourism offerings today rely far more heavily on synergies between other offerings worldwide. International travel is significantly faster and more accessible. Customers can discover a new destination online before booking cheap travel with ease, and a business as small as a deli can maintain a global network of customers at its fingertips. Leading up to the pandemic, the supply and demand for tourism was truly

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Casino Innovation Accelerated

year ago, the global gaming industry was watching the changes that started in Asia and then accelerated with the spread of Covid-19 around the globe, initiating the Great Shutdown. The gaming and hospitality industry has never been one that rests on its laurels, always trying to anticipate, innovate and enhance the guest experience. This was never truer than what the industry experienced over the last year as it needed to evolve with government directives that allowed casinos to reopen with restrictions. Health and safety measures have never been more important or heavily focused than they are today. In addition to the testing of employees and providing checks on guests entering the facilities, new products continue to promote evolution in the industry in redesigning the current and potential future flow of the gaming floor, as well as non-gaming amenities across the board. Innovators include companies such as Screaming Images, which was known for its wraps and larger-than-life signage, who recrafted its model to incorporate its ShareShield technology. Other standout companies include HBG Design and its “superbox” concept that reimagines the casino floor with Plexiglas, filtration and other technology to enhance the health and safety measures of the players. Other companies such as Environ Safety have developed science-based technology in air and surface purification to help stop the spread of Covid-19. These are just a few of the countless examples of the many products that will continue to evolve and be introduced in response to the Great Shutdown. Innovation will continue to drive and advance the industry in the coming months and years as properties are able to increase their capacity levels. While the vaccine is viewed as the greatest opportunity to combat the pandemic, it will also take innovation that in the end will offer an enhanced guest and employee environment. These are also important to offer peace of mind, showing the industry’s commitment to the people that it serves. The gaming floor of 10 years ago is different than the one that we all experienced over the past year. The advancements of the last year will continue to alter the gaming floor in ways that we initially did not imagine. However, those advancements will make the industry stronger in the years ahead as the gaming industry continues to reimagine the experience and accelerate innovation.

HBG Design’s “superbox” concept

Global Gaming Business MARCH 2021

worldwide in scale. Covid-19 may prove less deadly than the Spanish flu, but it has petrified the global tourism infrastructure built over the course of the last decade. The return to pre-pandemic economic prosperity may hinge on the world’s ability to revitalize this global web of travel, tourism and hospitality that accounted for one out of every 10 jobs worldwide. The customer is always right, and the customer wants to see the return of the Roaring ’20s. The question is whether or not the tourism landscape of days past will be adapted to serve the refined interests of post-pandemic customers.

Challenges Ahead for Las Vegas The economic impact of the pandemic is most evident in destination markets such as Las Vegas, where the vast Strip resorts, as well as other hotels, casinos, restaurants, theaters, and other businesses that compose the primary economic engine of Nevada, were forced to close in March 2020. As pandemic conditions stabilized, casinos throughout the country were able to reopen with limited amenities and revamped sanitation programs. This greatly benefited many local and regional gaming markets, such as those located throughout the American South, Midwest, and Indian country, where casino gaming revenues quickly returned to pre-pandemic levels. Certain areas even saw gaming revenue increases in the months after reopening. However, as Las Vegas relies much more heavily on tourists traveling to the area by air, the market remains well below pre-pandemic levels in terms of performance. Following the Covid-19 outbreak, McCarran International Airport in Las Vegas recorded a 55.1 percent year-over-year decline in domestic passenger volume in 2020, while international passenger volume dropped by nearly 80 percent. Accordingly, Las Vegas Strip gaming revenue in 2020 was cut in half. Additionally, revenues from ancillary amenities such as hotel rooms, dining outlets and nightlife options were decimated. With these amenities either closed or significantly reduced, far fewer jobs were needed on the Strip to keep operations running. This resulted in even greater reductions in regional employment when considering indirect and induced impacts. The losses of jobs and income further hits the local Las Vegas gaming market, where gaming and hospitality workers are a primary customer segment. Las Vegas had been struggling in the years prior to the pandemic as the costs of gaming, leisure and entertainment became prohibitive. Visitation in Las Vegas had plateaued, including a period of slight decline prior to the pandemic, as the rest of the country experienced substantial growth. Operators in the market compensated with hidden charges such as resort fees and parking fees, opting for short-term returns at the expense of a long-term relationship with loyal customers. Meanwhile, other destination markets such as Nashville, Austin, Seattle and New Orleans saw record growth in tourism leading up to the pandemic. With inflation levels unknown and prices rising precipitously during the rollout of economic stimulus payments, Las Vegas may be positioned to regain its market share of destination travel at its current price level. However, it will continue to face heavy competition from other destination markets. Differential Labs, the leading AI company for the gaming and hospitality industry, provided an index of Google search volumes on select topics over the last five years. Leading up to the pandemic, American consumers’ interest (from a search perspective) in a trip to Las Vegas appeared to be declining since 2017, while interest in local casino options continued to rise. This further illustrates that searches for “Casino Near Me” decreased sharply after lockdowns were announced, followed by a sharp increase, nearly returning to pre-pandemic levels. People are looking for casino trips, but not necessarily to Las Vegas.

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The Opportunity for Las Vegas Despite the challenges that remain in fully reopening with the appropriate safety precautions, customers continue to express a desire to return to Las Vegas. Even as visitation growth to Las Vegas had flattened in the years prior to the pandemic, customers continued to express interest in returning to Vegas, although this interest may not have been converted into actual trips. People want to go back to Vegas for the fun that it used to provide.

Google search trends reveal that interest in casino promotions, although relatively scattered over time, is still consistent with pre-pandemic behaviors, despite a slight dip in early 2020. In other words, customers want value for their dollar. If Vegas wants these customers back, operators must listen to what they are saying and give them what they want.

For Las Vegas to fully reopen, it will need to rely on the reopening of each and every function of the global tourism ecosystem, from fully operational bars to reopened airline routes. All of this will require every party involved to exercise safe and healthy practices that are suited to all customers in the market. Not surprisingly, interest in casino safety remains well above pre-pandemic levels, including above the peak in 2017 in the wake of the deadly mass shooting that occurred in Las Vegas. The key difference now is that in the eyes of the customer, there are several more factors to consider in casino safety beyond in-house security. This is amplified for Las Vegas and other destination markets that will rely on health and safety measures in long-distance transportation and other supporting sectors. Players want to return to the floor, but they want to return to a safe, healthy and comfortable casino environment. When the pandemic finally subsides, customers will turn first to travel, tourism, leisure and entertainment offerings that had been put on hold. The greatest challenge facing Las Vegas will be in reestablishing itself as the entertainment capital of the world, and providing customers value for their dollar—something that most Strip resorts have not done for years. However, the opportunity is ripe for Las Vegas to redefine the tourism and entertainment world as we know it, as it has done countless times before. The Roaring ’20s will be back again soon. Hopefully, the Las Vegas Strip leads the charge. Managing Partner Steve Gallaway and Associate Jack Gallaway are team members of Global Market Advisors (GMA), the leading international provider of consulting services to the gaming, entertainment, sports and hospitality industries.

MARCH 2021 www.ggbmagazine.com

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Making Book Online sports betting technology is advancing as rapidly as sports betting itself By Dave Bontempo

he pandemic spawns a byproduct. Online sports betting, driven by the online play of customers forced to improvise indoors, has become monolithic. The North American market sprawls with states racing to legalize, legislate and benefit from gaming’s golden goose. New Jersey delivered more than $900 million in November after exceeding $800 million in October. That’s nearly $2 billion in two months. The numbers shatter expectations on two fronts. One, few envisioned the pandemic’s duration, forming a new market of gamblers seizing tablets and mobile phones to gain instant action. Second, the proliferation of mobile technology enables robust revenue. It attracts new players and expands the menu option for experience gamblers. A number of companies have stepped to the forefront.

Continuing to Roll Kambi powers more than 30 operators on six continents, and all benefit from the data and insights it gathers from the industry’s premium sports betting network, according to Evan Schaffner, Kambi’s general manager in the United States.

Global Gaming Business MARCH 2021

Schaffner says the strength of Kambi’s outsourced sportsbook model helped its partners address challenges brought by the pandemic throughout 2020. Kambi works on a revenue-share basis with its partners, extensively reducing the fixed costs associated with having the sportsbook function entirely in-house, Schaffner indicates. This helped partners navigate problems without large overhanging fixed costs from the sportsbook. Kambi and its partners prospered after the adversity because a secondary market developed. “The initial lockdown situation and corresponding curtailment of much of elite-level sports naturally had an impact, but one of the key benefits of being a global sports betting supplier is that Kambi has long maintained a deep offering across all sports,” Schaffner says. “The second quarter of 2020 shed a greater degree of the limelight on traditionally more niche sports such as table tennis, UFC and darts, with table tennis being the top ranked sport for two months. Of those players that did continue to bet on these sports, we saw an appreciable rise in the ratio engaging with our live offering. “We also saw really high levels of enthusiasm when more popular sports such as basketball, baseball and golf did return, and Kambi’s commercial performance throughout 2020 underlined our ability to respond efficiently not only to the lockdown situation, but to ensure that resources were in place as those sports returned.” Schaffner notes that American sports bettors increasingly engage with live betting along with “instant markets” like the result of the next pitch in baseball or the next point winner in tennis. In-game betting has long been a stronghold in Europe, where it accounts for roughly 80 percent of the action, according to industry experts. The concept rapidly catches on here. “The quality of the in-game offering is now the key differentiator between an excellent sportsbook and a merely good one,” Schaffner says. “Providing this requires a supply chain capable of delivering on all levels, beginning with the integration of official data partners and proven algorithms that process the data, followed by excellence in trading and risk, which must all be supplied through a fast and intuitive front end. Only when these elements are working in perfect harmony can an operator begin to deliver a best-in-class in-game service.” Schaffner predicts that the quality of the in-game offer will be increasingly key in the battle for market leadership in 2021. “Low delays and high levels of market availability are crucial, and this is an area in which we are well equipped to compete and support our partners,” he says.

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“One of the greatest attributes of the PlaySports platform is its scalability.” —Matteo Carli, Senior Vice President of Global PlaySports, ETG and Poker, IGT

“In the absence of a crystal ball, predictions are always tricky, but it’s no secret that several states, including the likes of New York, are looking to expedite regulation with a focus on mobile. Kambi has underlined our pedigree and ability to meet any regulatory requirements, recently launching four of our partners on day one of online regulation being active in Michigan. We have a number of ambitious partners keen to capitalize on the spread of regulation, and Kambi will be there to help them achieve this.”

Goundwork Becomes Jackpot From foresight to fortune, IGT thrives with PlaySports. Matteo Carli, senior vice president of Global PlaySports, ETG and poker, believes IGT reaps the reward of previous sports-betting investment. “Several years before the 2018 repeal of PASPA, IGT was hard at work refining its PlaySports platform specifically for the needs and opportunities of the U.S. market,” he says. “That effort put us ahead of many of our competitors and resulted in a scalable, market-ready, localized product that was ready for immediate deployment by the time PASPA was repealed. “During a three-plus-year R&D cycle, IGT maintained its focus on cultivating a versatile solution that could grow in parallel with market opportunities and serve a wide variety of operators including the largest B2C brands, commercial and tribal-run casinos, racetracks and lotteries.” IGT now capitalizes on the market position it obtained. “Today, we offer the leading, most comprehensive and highest-performing omnichannel sports betting platform in the U.S. market,” Carli says. “Now powering sports betting in 16 U.S. states and at more than 50 gaming venues, IGT maintains an ongoing dialogue with its customers to ensure its innovation roadmap is aligned with player demands and market opportunities.” Carli says IGT’s platform-integrated Player Account Management (PAM) tool is an example of a customer-driven product evolution that has been introduced since the company launched its first platform in 2015. The PlaySports PAM enables operators to drive player acquisition and retention through personalized offers and promotions in real time, through an embedded solution. This feature also supports IGT’s position as a total sports betting solution provider. “With innovations such as the PlaySports PAM and services such as our recently launched Trading Team, the PlaySports platform has matured to a turnkey partner for establishing and growing a sports betting enterprise,” Carli says. “The PlaySports platform also supports a range of intu-

itive self-service betting technologies such as PlaySports Kiosks, PlaySports Pad and the CrystalBetting Terminals. Each of these solutions extends the reach of retail sports betting and gives players more choice and convenience for when and where to place their sports wagers.” Carli remains bullish on the overall impact of PlaySports. It can service markets of varied size. “One of the greatest attributes of the PlaySports platform is its scalability,” he says. “This quality enables IGT PlaySports to service large, multi-state operators such as FanDuel, independent casinos such as The Mill Casino, mobile-only enterprises such as Circa in Colorado and effectively everything in between. The hub-and-spoke architecture of our platform is central to our multi-state customers’ success, and provides a cost-effective path for managing multi-state operations and adding new ‘spokes’ to their enterprise as new sports betting jurisdictions open up.” Carli says that by expanding its footprint with FanDuel and others over the last several years, IGT has gained tremendous high-volume experience in the U.S. market The pandemic, meanwhile, hasn’t halted IGT’s optimism for the future. Carli predicts that sports-betting’s growth, which outpaces the rest of the North American gaming market, will continue. He cites a tremendous player demand for this form of entertainment, coupled with state governments looking for tax revenues. “As operators build their land-based businesses back to pre-pandemic levels, adding retail sports betting is a clear path to elevating casino visitation and diversifying player demographics,” he says. “I believe we’ll continue to see operators complementing their retail sportsbooks with mobile betting options, be it with on-premise mobile apps like what IGT powers in Mississippi or via online solutions. As consumers become increasingly more comfortable and expecting of mobile entertainment, it is only natural that sports betting becomes more readily available in this format. “I think this is true of iGaming, too. As we all recently observed in MARCH 2021 www.ggbmagazine.com

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“Sports betting in the United States is the No. 1 topic in all of gaming. The revenue is there for that. This is not for the faint-hearted.” —Marcus Yoder, Senior Vice President of Sales, GAN

Michigan, there is tremendous demand for both sports betting and iGaming, and growing both segments in tandem has proven to create significant player engagement.” In the midst of the sports-betting craze, Carli expects IGT to have wider deployments for its award-winning Crystal Betting Terminal and other self-service betting technologies.

Expanding Platform GAN spreads its wings, bringing sportsbetting capability into simulated gaming and real-money operations. It annexed the third piece of the puzzle with the acquisition of Coolbet, first announced late last year and moving toward finalization in 2021. GAN is a leading business-to-business supplier of internet gaming software-as-a-service solutions to the U.S. land-based casino industry. By adding Coolbet for approximately $176 million in cash and stock, it became a sportsbook player. Highlights: • Integration of Coolbet’s industry-leading, proprietary sports betting technology into GAN’s current B2B technology stack began in earnest pending closing of the transaction. • Expecting broad availability of integrated offering for the U.S. market no later than Q3 2021. • Transaction is expected to be immediately accretive. • The €149.1 million ($175.9 million) purchase price was established on a “cash-free, debt-free” basis. Coolbet arrives just in time to impact the GAN lineup. Sports betting is an enticement for all forms of its operation. Lucrative markets looming in New York state wrangle with how, not if, sports betting will emerge. Michigan and Virginia crossed that threshold in January, starting online operations. “Sports betting in the United States is the No. 1 topic in all of gaming,” says Marcus Yoder, senior vice president of sales for GAN. “The revenue is there for that. This is not for the faint-hearted. We view this as a significant growth opportunity.” CoolBet gives GAN a third major prong in the gaming world. One of them is its social casino. Online, players receive video chat hosts, participate in slot and table tournaments and play both classic titles and new games from major manufacturers before those titles are placed on the casino floor. Offline, players can be treated to exclusive rewards, loyalty points and in-casino amenities based on their online purchasing or non-game play. “We continue to sign major new simulated gaming partners,” he says. “Some are signing up and even if they don’t see the future for realmoney gaming with us, they want to engage their players.” 40

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It can work via several methods. In one example, a player goes to a simulated site and purchases 100 million virtual credits that may equate to $100 via Amazon. The loyalty points have nothing to do with the outcome, but the customer likes playing. “Whales drive the business,” Yoder says. “We have VIP players on all of our simulated gaming sites. They are depositing and playing with thousands of dollars a month, making online purchases and using virtual currency.” A real casino operates online, with real-money games. In some cases, that includes a live dealer operating from a studio dealing cards out to players online. It enables patrons to realize the VIP gaming experience, Yoder says. The CoolBet realm enables GAN to help a casino power a sportsbook. GAN now presents simulated gaming, real gaming and real impact in the sportsbetting world.

BetConstruct Enables Pinnacle BetConstruct is a global awardwinning technology and services provider for the online and landbased gaming industry. The company obtained a roaring 2021 start with the integration of Pinnacle Sports’ sports betting offer onto its platform and its further supply to operators. The company stakes its claim to open its platform to third-party sportsbooks. The partner-oriented approach led to what BetConstruct considers a landmark deal, embracing one of the company’s key partners, Vbet. Company officials say that Vbet will utilize the iFrame solution, giving its end users across a number of territories access to a market-leading array of betting content, including an award-winning esports betting product. That product, catered for Pinnacle Sports, comes with expert risk management and is available under its iFRame API solution alongside BetConstruct’s betting offer. “This partnership with BetConstruct, covering both its B2B and B2C arms, showcases the flexibility of our Pinnacle Solution sportsbook offering and ability to service client needs, whatever they may be,” says Paris Smith, CEO of Pinnacle Sports. “Having seen encouraging early results, we’re confident that this partnership will continue to be a successful one, with BetConstruct proven to deliver results across its own brands, as well as for its B2B partners who can now supply their customers with our market-leading sports betting content.” Throughout the industry, the sports betting scramble ensues. In retrospect, this may be viewed as a time when operators regrouped and reset. They’ve changed bingo venues into large, well-spaced slot parlors. They have obtained safety products. They have become attuned to social distancing. But they also increased their involvement with sports betting platforms, the next cash cow.

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FRANKLY SPEAKING by Frank Legato

Toilets, Rugs and Slot Machines best restrooms.) Hold the phone here. The employees all had masks on. For all we know, they could be twisting their mouths in a hideous manner under those masks. It turns out they accounted for that. According to the article: “The statement pointed out that during the pandemic, the association used other measurements to assess whether facemask-wearing service providers were smiling, such as ‘bagging’ under the eyes and wrinkles on the side of the eyes.” So, it appears anyone with a hangover would get credit for smiling. I wonder who decides. Does the association fund smile detectives to work with the toilet squad? Moving on, you can now buy a piece of the El Cortez carpet they just ripped out. Evidently, they carved up the “beloved old carpet” into 16-by-16-inch sections for $19 each. They’re billing it as a chance to own a piece of classic Vegas. First, as I noted previously, it’s not a piece of classic Vegas. It was installed in 2007, and torn up after 13 years. Liberace had been dead 20 years when the carpet was installed. Sinatra for nine years. It did look like it was from the 1930s, but that was probably a combination of the traditional floral pattern and 13 years of grime. I get it. That carpet is a piece of one of the few Las Vegas casinos that still look like they did in the old days. Legendary El Cortez founder and original owner Jackie Gaughan still lived in the hotel’s penthouse when that carpet was laid. It’s a piece of Downtown Las Vegas history. It’s also a $19 carpet square embedded with 13 years of grit, spilled booze, cigarette butts, vomit and God-knows-what-else. I don’t generally collect those types of specimens as souvenirs, so I’m going to respectfully decline, thank you. Finally, elsewhere in Downtown Las Vegas, you can find a new slot area at the Plaza that carries an exclusive collection of the 16 favorite games of Brian Christopher, the YouTube “slot influencer.” Christopher is one of the top internet stars that have grown from the practice of streaming cellphone videos. They record themselves playing slots, and stream the videos to their YouTube channels, where they are watched by millions of fans. I wanted to be a slot influencer once, but you have to be able to hold an audience in a game-show vibe as you play. I can’t be perky while I gamble. Or any other time. I guess I’ll stick with being a smile detective. (Beats the toilet squad.) VICT OR R INALDO

s if we didn’t have enough to worry about as we slowly emerge from corona-funk, now we have to plan our trips around our bathroom breaks. Wait, that didn’t come out right. (And no, that’s not a pun.) By planning our trips around our bathroom breaks, I did not mean to make fun of people whose bathroom breaks have increased due to old age. Heck, these days I plan everything around bathroom breaks, from sleep time to, well, every waking hour. What I meant was that now we have to make sure they have nice casino restrooms where we’re going to stay. Hey, blame the Macau Gaming Research Association. According to the Macau Post Daily, research from the association’s Gaming Service Index for 2020 shows that the “toilet environment quality” at local casinos has dropped for three consecutive years. Well, crap. According to the article, the association made this determination based on the findings of “mystery shoppers,” researchers who secretly measured the service quality of restrooms at Macau casinos. They went to 15 “representative” casinos and, presumably, went right to the Starbucks for a bran muffin and an espresso. (Well, that’s what I’d do, anyway.) At some point, the time would come, as they say, and they would secretly go and assess the level of quality in the toilet experience at each of the Macau casinos. According to the article, the mystery shoppers visited the casinos “twice—once at the beginning of October and the other time in November—and completed 1,248 samples.” Samples? Yikes. So the Macau gaming industry is funding toilet detectives. I wonder how you get that job. I can think of less pleasant ways to spend my work hours. Do they provide magazines? Although with Macau bathroom quality declining, I’m not sure I’m ready to switch occupations right now. On the bright side, smiles are up in Macau. The same research that yielded the bad toilet news found that the service quality in Macau casinos was up, especially in the “smiling” category when dealing with customers. (I’ll wager this excessive smiling was most evident in casinos with the

MARCH 2021 www.ggbmagazine.com

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EMERGING LEADERS Turning the Tables Zachary Levine Vice President of Table Games Strategy, MGM Resorts International achary Levine lived a dream. He covered the Philadelphia Phillies while a student at the University of Pennsylvania. After graduation, he moved on to the Houston Chronicle, writing about the Astros. As a member of the Baseball Writers Association of America, Levine got to vote for the Most Valuable Player and the Cy Young Award. He also spent time with the Baseball Prospectus, the statistical bible for a sport steeped in statistics. Not bad for someone who majored in math and economics. “I was looking for a school with a strong math program but also one with the ability to get a wellrounded education,” says the Albany native. While still with Baseball Prospectus, Levine obtained an MBA degree at the Massachusetts Institute of Technology. During the program, he did a 10-week internship at MGM Resorts International. Just as he fell in love with baseball writing, Levine fell in love with the casino milieu that is Las Vegas. After graduation, he joined MGM as an executive associate in table game analytics. He dealt with statistics and probability, the heart of gambling. As vice president of table games strategy, Levine works on large table game initiatives, running analytics across the company, maintaining the kind of data needed for recommendations. “We also guide our products strategy for table games—the evaluation of new games and new technologies as well as the allocation of capital to modernize our offerings,” he says. The Covid-19 pandemic took its toll in the past year. But the biggest obstacle for Levine was one that never materialized: anticipating a difficult transition into management due to the lack of traditional pathways from dealer to supervisor to manager. “I’ve been fortunate to be able to learn from people who have gone through those roles,” says Levine, who runs to relax. Perhaps credit for that goes to mentors he’s worked with along the way. Todd Haushalter, now chief product officer for

The Big Move Peter Wolff

Global Gaming Business MARCH 2021

Head of Compliance, Bet365 eter Wolff grew up a fan of video games. While the engineering skills he acquired at DeVry University helped when he joined Gaming Laboratories International in 2008, he found his love of games carried over to the dissection of slot machines. “I thought it was cool that through testing I could fully understand how the gaming devices worked at a hardware and code level,” Wolff says. He spent 13 years with GLI, ascending to director of global technical compliance for the company. In February 2021, he moved to Bet365, where he serves as head of compliance for U.S. markets. What kept Wolff at GLI was the diversity of devices he worked on, from slots to table games, from accounting systems to bingo, from iGaming to sports betting. “As a member of the engineering team I had the ability to be involved in testing all of those types. Work never became stagnant,” he says. With GLI, Wolff oversaw a team of more than 30 engineers across the globe, ensuring test standards were met. His team also worked on new technology, including sports-wagering systems, iGaming, esports, cloud-based computing, blockchain technology, skill-based gaming and cashless solutions. “My favorite part of my job in the last five years has been helping to explain new technologies to regulators and also getting to be involved with innovative and new technology solutions. I can’t wait to provide these services to Bet365,” says Wolff, who will help guide the firm’s expansion across the country. Obstacles are part of any job, Wolff says. “I also think you can learn the most from those experiences and use them to make your life easier moving forward.” Take Covid-19. Wolff credits the technical

Evolution Gaming, hired Levine at MGM when he served as vice president of gaming operations. “He is one of the main reasons I felt like I belonged in this industry. We had endless conversations, not just on strategy to improve our casinos, but on why people gamble, what our customer is looking for, what makes a good game. The way he thinks about our business is unparalleled.” Doug Seidenberg, MGM’s chief gaming officer, is Levine’s current leader. “Doug taught me not only what he’s learned in his years of getting to know our customers and our product, but also how to navigate a complex workplace and large company.” David Tsai, president of MGM Grand Detroit, was integral to Levine’s development early on. “He guided me on where table games fit in the broader company and how to take some of the skills I learned in school and put them to good use,” he says. With so many changes during his tenure, Levine would be foolish to venture a guess about the future. “But I do know that I see myself in a role that involves decision-making on how people consume gambling,” he says. “The technologies and the mechanisms will be different, but the end goal is the same.” For those thinking about a career in the gaming industry, Levine has some advice. “Focus on improving the products and experiences, but once in a while, mentally withdraw yourself from that.” —Bill Sokolic

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“It’s OK to push yourself a bit outside your comfort zone. Get to know the people you work with on a personal level.”

Running a First-World IR Cherchi Chen

compliance team, engineering test teams, suppliers, operators and regulators with coming up with creative solutions to help keep the work flowing. Wolff credits his success to a raft of mentors, starting with his parents, who instilled a strong work ethic. The list from GLI alone includes Jim Luccarelli, technical compliance manager; Chad Kornett, senior director of engineering; Chris Gallo, vice president of technical compliance and quality assurance; Kevin Mullally, vice president of government affairs and general counsel; and Michael Capen, most recently director of client services. “I can truly say that I learned something different and unique from each one of these individuals and they each have helped guide or mold me to get me where I am at today,” says Wolff, a Jersey guy who explores the shore towns, and takes walks with wife Erin and their dog, Chase. To industry newcomers, Wolff says stay humble, but take every chance you have to try new and different things. “It’s OK to push yourself a bit outside your comfort zone,” he says. “Get to know the people you work with on a personal level. While our industry is big in some respects, it is also small in others and you’ll find yourself working with the same people, just in different positions.” To unwind, Wolff does chores others shy away from, like mowing the lawn or cleaning the pool. “It might sound silly, but I think there is something to be said about doing a task that doesn’t require a lot of thinking and has an achievable goal tied to it.” — Bill Sokolic

Managing Director of Finance & Operations, NagaWorld ith a background centered on banking and finance, Cherchi Chen started expanding his horizon in the gaming industry in 2015 when he made a significant decision to switch from his then-ascending status in the Malaysian investment banking scene to NagaWorld in Cambodia to build a successful business career out of what he described as “a great opportunity many could only wish for.” “The move to Cambodia and joining NagaWorld has been a life-changing experience for me, and it is a decision I have never regretted,” says Chen. Venturing into a new industry and rising to a set of unique challenges would not be easy. However, Chen did not hesitate for a second to assume responsibility and to gain comprehensive handson experience, even in minor matters. As he sees it, a job is not well done unless you scrutinize it, which not only greatly made up for his shortage of experience in the initial years, but also offered him chances to apply a personal touch and to be proud of his own actions and decisions, giving the confidence needed for future projects and building up management experience. Chen credits his own success to his father and “best mentor,” Dr. Chen Lip Keong, founder, controlling shareholder and CEO of NagaCorp Ltd. Chen has been diligently learning so much from his father’s vision of NagaWorld in Cambodia and the gaming industry in the future. When Chen encounters new challenges, he recalls the three words, “it’s all logic,” from another important mentor, Philip Lee, executive deputy chair-

man of NagaCorp. “Philip’s three words help me realize that there is always a logical balance in running everything in business, and that every decision has to make commercial sense,” says Chen. Chen encourages young professionals in the industry to work hard and be perseverant. “Not every day is going to be a bright, sunny day,” says Chen. “There will be days of gloom, and you just have to tell yourself to look past the short-term gloom and look forward to a better day ahead.” For example, the global hospitality and gaming industry is suffering from the Covid-19 pandemic, but there will be a pent-up demand for travel and leisure past the gloom, which he believes will reinvigorate the entire tourism sector and make it an outperforming star once again. Additionally, constant training and self-improvement are also important, as Chen points out, “to keep oneself equipped for skills and knowledge in the sector and to gain relevant skills that put you ahead of your peers.” To overcome lack of an academic background in hospitality gaming, Chen enrolled himself in numerous training programs and was proud to be a graduate of the 2019 Executive Development Program from the University of Nevada, Las Vegas and the University of Nevada, Reno. Along with training and self-improvement, Chen has spared no effort on NagaCorp’s CSR programs that benefit thousands of Cambodians annually throughout the country. His company runs NagaAcademy, a successful training platform that has trained more than 1,000 individuals who do not have an opportunity for higher education due to lack of financial support or education infrastructure. NagaCorp has also established the Executive Trainee Program to better prepare team members for promising careers in the hospitality sector. Chen is proud that NagaWorld provides worldclass training, career advancement with proven performance, and equal employment opportunities. “There is really no limit on career progression and satisfaction at NagaWorld, if you commit yourself to performance,” he says. Looking forward, Chen views technology as an opening door for emerging leaders in the gaming industry to establish themselves. “Technology constantly changes the way we live, and almost every element in the gaming industry has been improved by technology,” says Chen. “It will help chart and revolutionize the industry going forward.” —Michael Zhu is senior vice president of international operations planning and analysis for The Innovation Group.

MARCH 2021 www.ggbmagazine.com

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NEW GAME REVIEW by Frank Legato

Crush Series Everi Holdings

his game group on the new curved Empire Flex cabinet features new versions of one of its most popular games, Crush—the game that replaces spinning reels with a sculpted Aztec head. The player sends boulders down one of two chutes for each play, to where the head drives down to crush the boulders to yield credit awards. This has been one of Everi’s most popular game mechanics, as players can send the Aztec hammer down several times on some plays to crush a boulder or increase the prize. The two new games are called Crush Conquest and Crush Dynasty. Crush Dynasty and Crush Conquest contain no reels, lines or pay tables, and instead feature a sculpted dragon or Aztec head that crushes boulders to yield credits. Both themes showcase the Rampage Feature, a mystery event where the head icon crushes multiple boulders that roll down chutes on either side of the screen to award large bonuses. Higher bets increase the prize amounts revealed by the crushed boulders, which is sure to keep players entertained.

When the Rampage Feature triggers, the pace of the game increases as boulders fly down from both sides of the curved portrait screen as the player sends down the head (or dragon head) to crush them. It is a great interactive event that has caught on as a true alternative to spinning reels in a video slot. One of the sequences in the game requires several cracks at crushing a boulder to revel one of six levels of progressive jackpot, with reset levels ranging from $15 for the Mini to $2,000 for the Ultra. Manufacturer: Everi Holdings Platform: Empire Flex Format: Wagers initiate animated boulder-crushing sequence for credits Denomination: .01 to 100.00 Max Bet: 500 Top Award: Progressive; $2,000 reset Hit Frequency: 15%, 17% Theoretical Hold: 3%-11%

Frontier Spin

Aruze Gaming America

his new multi-progressive video slot series on Aruze’s Muso Curve-43 and Curve-43 Hybrid cabinets features a unique free-spin feature amid four total bonus events. There are four inaugural base games in the series—Frontier Spin Wolf (pictured), Frontier Spin Bear, Frontier Spin Bull and Frontier Spin Stag. The base game is a five-reel video slot available to casinos in configurations of 10, 20, 30, 40 or 50 paylines. The free-spin feature is unique in this game series. In Frontier Spin Wolf, the feature is triggered by coin symbols on three or more consecutive reels, but typically, there are multiple coin symbols on one or more reels to trigger the feature. Each coin symbol bears a number—1, 2, 3, 5, or 10. When the feature is triggered, the player is awarded the sum of the numbers on the screen as the number of free spins. This can result in a maximum of 200 free games. Each of the four Frontier Spin titles has a unique free games feature. Frontier Spin Stag allows players to select their level of volatility with up to 20 free games. Frontier Spin Bear has eight free games with a player-selected mystery symbol added. Frontier Spin Bull has eight free games with extra top symbols added.

Global Gaming Business MARCH 2021

When five or more arrow overlays appear on screen, the Frontier Spin Feature is triggered. The topper will scroll through three possible bonus features and select one. In Ultra Big Reel, a giant reel spins to land on a slice awarding credit prizes of 1,000, 1,500, 2,400, 3,000 or 4,000; or one of the four progressive jackpots (resets of $20 for the Mini, $50 for the Minor, $800 for the Major and $5,000 for the Grand). The Bonus Wheel event spins a standard video wheel containing credit amounts ranging from 500 to 3,000 credits, and all the progressives except the Grand. Super Pick Jackpot displays 12 icons, and the player picks until revealing three matching symbols corresponding to one of the four progressive jackpots. Manufacturer: Aruze Gaming America Platform: Muso Curve-43 Format: Five-reel video slot; 10, 20, 30, 40 or 50 paylines Denomination: .01 Max Bet: 600 Top Award: Progressive; $5,000 reset Hit Frequency: Approximately 50% Theoretical Hold: 3.99%-14.98%

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Happy 8’s Prosperity Boost Incredible Technologies

T is releasing new versions of its Happy 8’s and Jolly 8’s games, called Happy 8’s Prosperity Boost and Jolly 8’s Prosperity boost. Happy 8’s and Jolly 8’s both offer persistent-play features. The games’ main primary-game feature is “Scatter Blast,” an innovative accumulation mechanic for bonuses, progressives and added wilds over a cycle of eight spins. Players collect wilds and progressive scatter symbols over seven spins, and on the eighth spin, all wilds are released to the 40-line reel set for one “epic spin.” Any progressive awards or bonus meters that have been filled with their respective scatters are also awarded. After eight spins, all bonus and progressive collections are reset to start the cycle over. The new version, on the Infinity Pilot cabinet, adds bonus trigger symbols to the items collected over the eight spins, and adds a mystery “Prosperity Boost” feature. Two dragons flanking the reels randomly add collectible features like wilds, progressive scatters, bonus triggers or multipliers for eight free spins, with the chance to retrigger the spins. All other collected features carry over into the free spins and remain for the feature, even through retriggered free games.

Manufacturer: Incredible Technologies Platform: Infinity Pilot Format: Five-reel, 40-line video slot Denomination: .01, .02, .05, .10, .25 Max Bet: 880 Top Award: Progressive; $10,000 reset Hit Frequency: Approximately 50% Theoretical Hold: 5.92%-14.89%

Quick Strike Extreme Link Konami Gaming

his progressive product is on Konami’s new KXP Platform (“Konami eXperience Platform”), which drives faster media to Konami slot games to showcase far richer graphic display for

players. Quick Strike Extreme Link gets its name from the fact the game series returns very frequent progressives. This version of the link features a six-level progressive jackpot, each jackpot carrying a “must hit by” range. The top “Supreme” jackpot, resetting at $5,000, must be hit by $12,000. All of the jackpot meters show the must-hit-by level, which can fuel jackpot fever as the levels draw near. The top three jackpots are linked; the bottom three are stand-alone progressives. All are mystery jackpots; they occur randomly during normal play. Another mystery feature is the “Fire Blast” bonus feature. Translucent symbols randomly appear on the reels to substitute symbols to create winning combinations. The base game is a five-reel, 25-line video slot. The main bonus is a free-game round triggered by three yin-yang symbols, that offers the player a choice of volatility through five combinations, from seven free spins with the most chance for high-paying stacked symbols to 15 free

spins with the lowest potential for stacking. Retriggers can boost the total number of free games as high as 45. Manufacturer: Konami Gaming Platform: KXP Format: Five-reel, 40-line video slot Denomination: .01, .02, .05, .10, .25, .50, 1.00, 2.00, 5.00 Max Bet: 375 Top Award: Progressive; $5,000 reset Hit Frequency: 29.99% Theoretical Hold: 5.91%-14.8%

MARCH 2021 www.ggbmagazine.com

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CUTTING EDGE by Frank Legato

‘Xtreme’ Progressive PRODUCT: Bonus Spin Xtreme MANUFACTURER: AGS

perators can drive excitement, player engagement and incremental revenue with AGS’ award-winning Bonus Spin Xtreme progressive side bet system. With its groundbreaking proprietary technology, Bonus Spin Xtreme enables casino operators to link all table games on the casino floor to the same jackpot pool, requiring only one seed amount and providing faster-incrementing and larger jackpot awards. Bonus Spin Xtreme is also the perfect solution for community-style table games. Its unique wheel design allows for one unique progressive jackpot winner on community games such as roulette, baccarat, craps, sic bo, and poker cash games. Three jackpot levels, including AGS’ popular must-hitby progressive, accelerate player engagement. Anticipation

builds as the jackpot gets closer to hitting. When the wheels spin, every participating player wins a prize. Each table game features a unique community-based triggering event, which initiates the spin of three eye-catching concentric wheels. The inner wheel displays the community prize, which every participating player wins. The middle wheel selects the Hot Spot player position. If the Hot Spot player made the wager, their bet sensor lights up and blinks, activating the outer wheel spin. The outer wheel selects the Hot Spot prize, which includes the progressive awards. For more information, visit playags.com.

Knowing the Customer PRODUCT: Your CRM MANUFACTURER: Cendyn

hanks to the power of big data and sophisticated technology solutions, casino revenue managers have an unprecedented level of detail at their disposal. With revenue management and marketing needing to collaborate more than ever, the combination of revenue data, loyalty data and marketing insights is greater than the sum of its parts. At the heart of this collaboration is Your CRM, a single shared view into guest behavior that drives success. Your CRM enables total revenue management. It enables behavioral insights into how, where and when guests spend money across a property. These behavioral insights reveal the overall revenue potential of each guest, whether they stay overnight or not. This precision affords the best revenue lever of all: optimizing total guest spend. Your CRM answers three key questions: which visitors spend money at which outlets, such as spas, nightclubs, concerts, restaurants, and retail; how the spending correlates to booking behavior and/or gaming spend; and what is the likelihood that they will spend again and how frequently? Having the answers to these questions at your fingertips allows a holistic view of your best customers and those with the potential to be best customers, expanding beyond room and gaming revenues to total spend across a large, integrated resort. Cendyn’s unique offering, aligning both CRM and RMS platforms, al-

Global Gaming Business MARCH 2021

lows hoteliers to create a one-of-a-kind experience for every guest, while moving the needle for every revenue source on property. Harnessing the power of CRM and RMS dataset alignment can future-proof a business. By merging customer spend data with behavioral information from multiple touch points and channels, hoteliers are able to create a single, robust guest profile. When a team has access to all this data, they can create highly personalized experiences that are proven to drive guest retention and loyalty. The coupling of rich guest profiles with integrated data points from various property systems, including gaming, gives hotel casinos a superpower to truly know and understand their most valuable guests. For more information, visit cendyn.com.

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ICE London 2021 Canceled Clarion Gaming canceled the planned co-located 2021 editions of ICE London and iGB Affiliate London trade shows that had been delayed twice in 2021 By Patrick Roberts

ICE 2022 and the iGB Affiliate London trade shows will be held at the ExCeL Centre

n response to requests from international stakeholders, Clarion Gaming do that. We will be vastly has canceled what would have been the 2021 editions of ICE London and expanding the product iGB Affiliate London, both scheduled to take place at the end of June. offering at those shows The shows are usually held in February and were first postponed to April, and and introducing many later to June. new features.” The 2022 edition of ICE London will be held at ExCeL London February The other major 1-3, 2022, alongside iGB Affiliate London February 3-5. trade show in the industry, Global Gaming Expo (G2E), is scheduled for OcAn expanded edition of the flagship iGB Live!, an affiliate show produced tober 4-7. In a statement to GGB, the American Gaming Association said the by Clarion, will retain its traditional dates of September 28-October 1, 2021 at show must go on. RAI Amsterdam, and in the process help kick-start the recovery for gaming “We are working towards safely reconvening the global gaming industry in communities in Europe. person at G2E Las Vegas in October,” according to Meredith Pallante, senior “The ongoing conversations we are having with exhibitors of all sizes across director of events for the AGA. “While many outside factors remain, the availboth events have shown continued and significant uncertainty about the year ability of vaccines combined with our industry’s leadership on responsible reahead,” said Stuart Hunter, managing director of Clarion Gaming. “Exhibitors opening are promising indicators for G2E 2021.” have expressed a desire to put the experiences of the last 12 months behind them and instead focus their collective energy and creativity into making the 2022 editions into memorable in-person celebrations.” The decision to return in February 2022 has been welcomed by the industry. Aristocrat Gaming General ManagerEMEA Erik van den Berg said, “We are fully behind Clarion Gaming’s view that —Stuart Hunter, Managing Director, Clarion Gaming people’s safety and comfort must always come first. Returning ICE to its traditional February window offers much more chance of a return to normality.” Also last month, the AGA and its partner in G2E, Reed Exhibitions, anAndrew Ludlow, managing director of gaming technology provider NRM nounced that the 2021 edition of G2E Asia will take place August 17-19 at Group, said, “This is a pragmatic and sensible response from the organizers. Venetian Macao. I’m pleased that we have this clarity and can instead plan for ICE London ’22 Traditionally held in May, the show was moved to August to allow exwhen the immunization programs will have taken place, travel will not be such hibitors to plan participation and travel in light of how the Covid-19 panan issue and the world will be a lot safer and a lot calmer.” demic and vaccine programs play out. “Given the current landscape, we believe that working toward ICE London “Through ongoing consultation with our stakeholders and the Macau government, Reed Exhibitions and the American Gaming Association deterin February 2022 represents the best option for everyone,” added Adam Azor, mined that an August event provides the best opportunity to showcase the calglobal head of marketing for Sportradar. iber of educational content and create the valuable marketplace that our Reflecting on the announcement in relation to iGB Affiliate London, industry has come to expect from G2E Asia,” the show producers said in a letShona O’Donnell, head of strategic events at Better Collective, commented, ter to exhibitors. “While we are very sorry that this year’s postponed edition will not take place, “We look forward to bringing the gaming community together at G2E we fully support the team at Clarion Gaming in making this difficult decision.” Asia, as the industry continues to recover from the devastating impacts of “Thanks to a significant financial investment in the development of new commercial channels for our customers,” said Hunter, “our team has spent the Covid-19.” As for Indian Gaming 2021, produced by the National Indian Gaming last nine months developing, market-testing and refining an integrated technolAssociation, it will be held concurrently with RES21, which is produced anogy platform to serve the international gaming industry year-round. nually by the National Center for American Indian Enterprise Development “Our next major live trade shows will be IGB Live and IGB Affiliate Ams(NCAIED), in Las Vegas, starting on July 19, assuming Covid protocols in terdam. Everyone is excited to get the gaming community back together at a Nevada will permit large conventions to return. physical event, and our autumn shows are well placed and on a safe timeline to

“Exhibitors have expressed a desire to put the experiences of the last 12 months behind them and instead focus their collective energy and creativity into making the 2022 editions into memorable in-person celebrations.”

Global Gaming Business MARCH 2021

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GOODS&SERVICES CHER-AE HEIGHTS LIVE WITH KONAMI SYNKROS

her-Ae Heights Casino and Konami Gaming, Inc. announced the completed launch of the Konami Synkros casino management system at the seaside gaming destination in Trinidad, California. Konami’s casino management system brings a strong mix of marketing solutions to engage guests at Cher-Ae Heights Casino, including floor-wide bonusing events, random drawings, personalized rewards and more. “This is an exciting time for us and our valued guests, as we introduce a robust new mix of systemdelivered promotions to make each visit memorable,” said Ryan Sundberg, general manager at Cher-Ae Heights Casino. “Synkros provides a long-term, comprehensive casino systems solution with U.S.-based support, so our casino continues to operate at the highest level of efficiency and achievement for years

AGA: AND NOW FOR SOME GOOD NEWS

American Gaming Association President & CEO Bill Miller

n a wide-ranging review of the current state of the gaming industry, American Gaming Association President & CEO Bill Miller said the priority of his organization in 2021 is accelerating the recovery of the gaming industry. He outlined four areas where the AGA’s focus will

be aimed this year: • Securing additional Covid-19 economic relief for the industry through temporary liability protections, investment in travel and tourism, supportive tax policy, and additional tribal relief. • Developing gaming champions on Capitol Hill and in the Biden administration. • Blocking harmful policies and advancing specific reforms to enhance industry competitiveness. • Using proprietary research and strategic communication efforts to ensure the gaming industry is heard. As for the Covid relief, Miller was encouraged that gaming “got fair treatment” in the first bill. “It was the first time we got that,” he said.

Global Gaming Business MARCH 2021

to come.” With Synkros, Cher-Ae Heights Casino enjoys access to hundreds of promotional capabilities and options to tailor campaigns to diverse player segments, with tools including Advanced Incentives, random giveaways—or hot seats—drawing tickets, SuperSeries system-delivered bonusing, and more.

IGT LAUNCHES S3000 CABINET IN MINNESOTA

nternational Game Technology PLC announced that it has launched the S3000 cabinet at Grand Casino Mille Lacs in Onamia, Minnesota, after becoming the first gaming supplier approved to distribute video slot games on spinning-reel IGT’s S3000 cabinets in in the state. The IGT S3000 gaming machines at Grand Casino Mille Lacs deliver a new-to-the-state gaming experience, complete with spinning reels, flashy

“In other instances where businesses got relief, like (Hurricane) Katrina and the financial crisis, the gaming industry was always excluded. Not in 2020. We just want to be treated like everyone else.” He attributed that willingness to include gaming in the relief package to the revival of the Congressional Gaming Caucus. “This made the AGA a better advocate for gaming,” he said. “We saw the benefits quickly and we needed it.” The AGA will deepen its outreach in Congress this year, as well. “We have 44 new members of Congress from gaming states,” he said, pledging to educate them on the benefits gaming brings to their states. “If they understand our impact they are more likely to support our issues.” He said gaming should take part in the new $1.9 trillion Covid relief package being proposed by the Biden administration. “We will make sure gaming is included in that package.” He said saving jobs was one of the priorities of the AGA, along with seeking tax incentives to revitalize tourism and travel, as well as the revival of the meetings and conventions business. He said the industry will remain engaged in federal issues and oppose anything that would derail the recovery. “We will opposes federal taxes or mandates,” Miller said. The $1,200 slot tax reporting threshold will

lights, iconic slot machine sounds and big win celebrations. Initial IGT games offered on the S3000 cabinets in Minnesota include some of the gaming industry’s most popular titles such as Double Gold, Pink Diamond, Triple Gold Bars and Triple Jackpot Jewels. “Introducing IGT games on the S3000 cabinet instantly elevated the excitement and diversified the entertainment that we can offer Grand Casino Mille Lacs guests,” said Robbie Sawyer, Grand Casino Mille Lacs vice president of gaming. “Grand Casino Mille Lacs is proud to be the first casino in Minnesota to showcase IGT’s spinning games, and is delighted to observe our guests enjoying the quintessential gaming experiences that they deliver.”

ARISTOCRAT DEBUTS ‘CRAZY RICH ASIANS’

ristocrat Technologies announced the North American launch of Crazy Rich Asians, a

also be a priority. “This was something that was established during the presidency of Jimmy Carter,” he said. “It’s long overdue to be updated and we want the government to review this administrative burden.” The AGA won’t stop at the federal level. “We will also be vigilant at the state level to ensure there are no increases in gaming taxes,” said Miller. “This is not the time to be targeting the gaming industry in states that are searching for more revenue. We paid over $10 billion to states in gaming taxes in 2019, and have overall higher tax rates than any other industry.” The good news begins with sports betting, which is now legal in 25 states and the District of Columbia and accepted $21 billion in wagers in 2020. Miller says at least 12 new states will consider sports betting legislation this year. “There are now 92 million people who can legally bet on sports in the United States,” he said. He also pointed to the emergence of online gaming, which grossed $1.4 billion in 2020 and paid over $300 million in taxes. The AGA will redouble its efforts with research and communication, said Miller. “We will make sure we are heard. We will make clear the link between local economic stability and gaming’s recovery.”

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new premium slot carrying the theme of the 2018 film, featured on the company’s new Neptune Double cabinet. Crazy Rich Asians features the Double Up, Triple Up, Quadruple Up left-to-right pays Cashon-Reels mechanic. Additionally, the game puts the control in players’ hands with player-selectable volatility, meaning players of all types— from casual to core—will enjoy the game. Crazy Rich Asians is a ReelPower ways-to-win game with medium volatility. Bonus features include Crazy Fortune, which awards Cash-onReels prizes on three or more reels from left to right; the Crazy Fortune Boost feature, which adds more Cash-on-Reel symbols for increased Crazy Fortune frequency; and the Wheel Feature, which offers the potential to win multiple spins of the wheel. The Neptune Double features stacked, curved 49-inch monitors, 4K graphics, an expansive virtual button deck, and a custom-designed and adjustable sound chair. Meticulous attention to ergonomics in the design resulted in a perfect screen angle, so the player can look straight up and see the top progressive meter.

Quick Play program to market,” said Steve Arcana, executive vice president and chief operating officer of Golden Entertainment. “Quick Play will improve the player experience by allowing our casinos and taverns to issue cashless advances quickly and conveniently.” Guests will be able to sign up for Quick Play either online or through an app and access their advance balance from any gaming device at Golden’s properties. The advance will then be available as players play different machines through Golden Entertainment’s loyalty program, True Rewards. True Rewards allows players to earn and redeem points at 140-plus locations. Current members can sign up for Quick Play using their True Rewards account and new members can sign up at any Golden Entertainment casino or PT’s Tavern.

SOLAIRE TAPS TCSJOHNHUXLEY FOR NEW GAMING AREA

able game supplier TCSJohnHuxley announced that Solaire Resort and Casino in Entertainment City, Manila, Philippines, has selected the company to supply gaming equipment for an upgraded area.

The Blaze Sic Bo Game

The new equipment includes key products such as Ora Curve Baccarat Displays, featuring striking LEDs that indicate the results of the previous eight games to make it easier for customers to follow recent trends from a distance. Blaze LED table technology features patented in-game animations and eye-catching graphics. The casino installed Blaze sic bo tables fitted with Automatic Dice Recognition (ADR), which brings added security to the game; and Blaze Money Wheel tables accompanied by a custom LED Money Wheel, which provides a centerpiece on the gaming floor. These latest products in the Blaze range feature high-definition graphics that enhance the player experience with stunning visuals as well as ensuring game results are clearly and easily seen by players, gaming staff and surveillance staff.

GOLDEN ENTERTAINMENT TO LAUNCH CASHLESS GAMING

asino and route operator Golden Entertainment has partnered with Marker Trax to begin rolling out the Marker Trax “cashless marker” solution to its Las Vegas casinos and taverns. Branded “Quick Play,” the cashless option will debut at Arizona Charlie’s Decatur, and will roll out at Golden Entertainment’s other casinos and taverns soon thereafter. Players will be able to use Quick Play to easily access cash advances electronically. Quick Play is powered by Marker Trax technology, which interfaces with Konami Gaming’s Synkros casino management system to seamlessly issue, record, manage and track players’ cashless advances and electronic balances. “Marker Trax and Konami have created pioneering technology that is bringing our exclusive

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PUBLICATION

AN ANNUAL INDUSTRY REPORT

Don’t miss your opportunity to reach tribal gaming executives from all corners of the industry!

GGB Magazine is proud to announce the 2021 edition of TRIBAL GOVERNMENT GAMING: An Annual Industry Report, the most comprehensive publication available covering all Class II & Class III tribal gaming operations. More than just a directory or resource guide, Tribal Government Gaming features editorial coverage of cutting-edge issues such as tribal sovereignty, Indian gaming regulation, economic diversification, nationbuilding, compacts and more.

Tribal Government Gaming is a highly visible publication with a circulation of 20,000, including bonus distribution at NIGA in April 2021, OIGA in July 2021, G2E in October 2021 and other appropriate trade shows and conferences.

Tribal Government Gaming reaches key decisionmakers in the Indian gaming and traditional casino industries, including operators, regulators, manufacturers and vendors.

As an annual publication, Tribal Government Gaming will offer a one-year shelf life providing increased frequency and recall for advertisers. Sponsorship opportunities are available for increased marketing awareness.

Ad Space Deadline: APRIL 22, 2021 I Publication Date: MAY, 2021 For more information on advertising, please contact

Terri Brady, Director of Sales & Marketing

phone: 702-248-1565 x227 I email: Tbrady@ggbmagazine.com

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PEOPLE SYNERGY BLUE’S WASHINGTON TO STEP DOWN

ynergy Blue, the former player loyalty business that shifted in 2016 to become a Georg Washington manufacturer of a variety of “skill-influenced” and arcadestyle gaming machines, announced that Georg Washington, the company’s founder and CEO, will be leaving his post early this year. Washington led the company’s entry into the slot market with casino games on which skill played a part in success, releasing games involving everything from video-game dexterity to driving skills in a simulated race. Washington said he is taking a break before starting his “next chapter” as an entrepreneur. “It’s been an incredible journey at Synergy Blue with an amazing team,” Washington said in a statement. “I am very proud of the hard work the team has done and what we have accomplished in such a small amount of time.”

CIRCUS CIRCUS PROMOTES EXECUTIVES

ircus Circus Las Vegas has announced leadership changes with the promotions of executives Stuart Richey and Shana Gerety. Richey has been promoted to executive vice presiStuart Richey dent and general manager. Since joining Circus Circus in December 2019, Richey has been instrumental in providing leadership and industry knowledge to increase revenue in multiple areas within the hotel and casino. Prior, Richey served as vice president of marketing, assistant general manager and general manager of Primm Valley Casino Resorts and has worked extensively in related roles in the gaming industry for the last 25 years. Gerety has ascended to the position of senior vice president of operations. Serving Circus Circus since February 2020 as vice president of marketing, Gerety has spearheaded numerous successful gaming and marketing initiatives, including planning and redevelopment of rewards programs and promotions surrounding on-site entertainment and amenities. Prior to joining Circus Circus, Gerety served as vice president of marketing at Primm Valley Casino Resorts and has more than 15 years in the gaming industry. Both Richey and Gerety joined Circus Circus Las Vegas after Phil Ruffin acquired the property from MGM Resorts International in 2019.

CAESARS APPOINTS NEW GMs IN AC

ovid-19 or not, when two casinos see gaming revenue declines of more than 40 percent, it’s not surprising when someone gets a pink slip. Caesars Entertainment in Atlantic City has parted ways with Ron Baumann, whose casinos saw a 46.8 percent decrease in revenues at Harrah’s, in the city’s Marina District, and a 43.8 percent dip at Caesars, located on the Atlantic City Boardwalk. Gregg Klein will assume the role of senior vice president and general manager at Harrah’s. Joseph Lodise will take the same title at Caesars Atlantic City. Both men have experience in Atlantic City. Lodise, a Villanova graduate, worked for Harrah’s for 10 years, serving as vice president of finance until his promotion to general manager with Caesars Entertainment’s Horseshoe Tunica casino in Mississippi in 2017. He spent six months as top man in another Caesars property in Mississippi before going back to Atlantic City.

SKYCITY PROMOTES THREE EXECUTIVES

ew Zealand gaming operator SkyCity Entertainment has announced the appointment of three executives to fill out its new leadership team. Callum Mallett Callum Mallett has been appointed chief operating officer for New Zealand, taking on operating responsibility for the New Zealand businesses and day-to-day operations of SkyCity Auckland. Mallett is currently executive general manager of hospitality at SkyCity Auckland. David Christian, currently general manager of SkyCity Adelaide, has been appointed chief operating officer for Australia and will continue to lead the Adelaide property, which has recently unveiled its AU$330 million (US$250 million) expansion, including the luxury Eos by SkyCity hotel and refurbished facilities within the iconic Adelaide Railway Station. Matthew Ballesty, currently executive general manager of gaming, has been appointed chief casino officer. He will be responsible for managing the casino operations at SkyCity’s largest property in Auckland as well as providing strategic direction on all gaming products across the SkyCity Entertainment Group. Michael Ahearne, CEO of SkyCity, said he spent several months assembling the leadership lineup. Last November, the firm announced that then-CEO Graeme Stephens would be leaving the business at the end of the month, to be replaced by

then-COO Ahearne. Chief Financial Officer Rob Hamilton and Chief Marketing Officer Liza McNally also left.

WHITTEMORE NAMED CHAIRWOMAN OF RESORT ASSOCIATION

ynn Resorts General Counsel Ellen Whittemore has been appointed chairwoman of the Nevada Resort Association for the 2021-22 term. Ellen Whittemore In addition to her role as general counsel, Whittemore serves as executive vice president and secretary for Wynn Resorts. She is a renowned expert in gaming law, compliance and licensing with more than 30 years of experience representing some of the world’s largest and most progressive gaming companies. Whittemore has been recognized as one of the “Best Lawyers in America” in the gaming industry, is an officer of the International Association of Gaming Advisors and is on the board of directors of Global Gaming Women. Other appointments also were announced last week. Andy Abboud, senior vice president of government relations for Las Vegas Sands, was named the association’s vice chair. Boyd Gaming Senior Vice President of Industry and Government Affairs Paul Anderson was named treasurer. And Resort Association President Virginia Valentine will serve as the board secretary. The Nevada Resort Association is the industry’s principal lobbyist in the state, with membership that includes 76 casinos and hotels.

GGB

March 2021 Index of Advertisers

AGEM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11 AGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 Aristocrat Technologies . . . . . . . . . . . . . . . . . . . . .9 Casino Player Media . . . . . . . . . . . . . . . . . . . . . . .49 Dickinson Wright PLLC . . . . . . . . . . . . . . . . . . . . .21 Erin O'Boyle Photographics, LLC . . . . . . . . . . . . .20 Everi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 Fantini Research . . . . . . . . . . . . . . . . . . . . . . . . . .51 GAN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17 GGB Podcast . . . . . . . . . . . . . . . . . . . . . . . . . . . .35 Global Gaming Business 180 . . . . . . . . . . . . . . . .10 Global Gaming Business/iGP . . . . . . . . . . . . . . . .47 GGB/Tribal Government Gaming . . . . . . . . . . . . .52 HBG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25 IGT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .55 IGT PlaySports . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 J Carcamo & Associates . . . . . . . . . . . . . . . . . . . .33 Konami Gaming . . . . . . . . . . . . . . . . . . . . . . . . . .56 Purchasing Management International . . . . . . . .19 Reed Expo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31

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CASINO COMMUNICATIONS

Darnell Johnson

Director of Product Management – Video Poker, IGT

hen Si Redd founded IGT back in the mid 1970s, video poker was the company’s cornerstone. When it went public in 1981, IGT dominated the video poker market. Not much has changed 40 years later. IGT is still the 800-pound gorilla in the video poker market. Darnell Johnson, the director of video poker product management, explains why video poker is one of the staples of the casino gaming market. He spoke with GGB Publisher Roger Gros via Zoom from the IGT offices in Las Vegas in January. To hear a full podcast or see the Zoom interview, visit GGBMagazine.com. GGB: People forget that video poker was really the first skill-based game, and people enjoy it because they have some sort of control over whether they’re going to win or lose. How do you keep interest in video poker with the new skill games hitting the casino floor? Darnell Johnson: The casino industry as a

whole is constantly expanding. So, sports betting, casual games, skill-based games, all these things are just additional offerings that we as casino manufacturers provide as a means of entertainment for the player. We don’t really see poker as anything less, now that more of those games or venues are starting to expand. We just want to continue to provide the best type of content and product offerings for our customers that we can. We want to make sure that the player’s experience is the best experience that they have when they go on their casino floor. We want to make sure that it’s memorable, so that they can come back and play again. IGT has a really diverse lineup of games. You are always introducing new versions of video poker. How do you decide how to tweak them, and what kind of other options to give to the players?

Global Gaming Business MARCH 2021

When we first introduced video poker several decades ago it was very straightforward. And we started to do a lot of evolutions, working with internal resources that we have, and other partners, where we can create a lot of different types of opportunities for more favorable experiences to the players. Introducing a triple/five/10-play game mechanic, where a player now has the opportunity to play not just one single hand, but three hands, five hands, or 10 hands, at any given time just creates a lot more excitement from a player’s perspective. That’s what we continue to try to do. We look to see how we can innovate things, but we also have to be very mindful that poker players are very loyal, and they don’t like to see a lot of change. We understand that and we respect that. We’ve seen those Jacks or Better players start transitioning over to different game families, whether that’s a Bonus Poker play, or Double Double Bonus, or even Triple Double Bonus, depending on what type of volatility they’re looking to get out of their experience. We also talk to the operators, because they know their players way better than we do, as to what they’re looking for, and continue to drive content that meets that need. The hold percentage on a video poker game is really pretty low, when it comes to the casino, and pretty high for the player, if you play the correct strategy. The better they learn the strategy, the better they’re going to do at the game. But I’ve noticed a lot of players don’t really know this strategy.

There are a few players out there that play really, really well, but there are not many that play perfect strategy. It takes a very disciplined player to be able to do that. Though there are definitely some advantages, I think the properties are well-versed in understanding how to leverage that to their benefit as well.

One of the great things about video poker is that you can sit at a bar and play it. And that was really a lot of the attraction of it in the beginning, especially here in Nevada when they had the small casinos. IGT has just introduced a new PeakBarTop cabinet that is doing very well. Explain the strategy behind that.

A few years ago, we started the exercise to look at creating a new type of form factor for the bar area. We were getting a lot of feedback from customers, that they believed that it was time to start looking at a new form factor. So, we took the challenge to create something. We wanted to create something that is definitely going to resonate with today’s players, but could also resonate with future players as well—something that can evolve over time, to offer everything that video poker offers today. I think IGT is a clear leader in that space of innovation. I think we’ve shown over the last couple of years now that we’re looking to continue to push the envelope. We introduced a curved monitor to the bar area. That was not something that had been considered previously. There are a lot of issues with the bars from a glare perspective, where a curved display, positioned the right way, can absorb that glare and not redirect it back into the player’s eyes. Ergonomics was a big part of this. We wanted to create a solution that is much better ergonomically for the player as well, where the customer can play and be comfortable. The buttons are a key element of our bar-top as well. Players love those buttons, and know those buttons, so we want to make sure that we would keep that same interaction, while, at the same time, try to create more innovation to make it more appealing, from both a hardware perspective and a software perspective. And thankfully, I think we’ve done a pretty good job of that so far.

Dedicated Ascent® video poker content stream

Traditional poker button panel with ergonomic comfort features

Mobile device charging port

Premium 23” curved LCD display

I like the DESIGN, the COLOR, and the CURVE of the screen. It’s very sharp. It’s easy to see. -Focus Group Respondent

Research-driven design: The new PeakBarTop™ takes beloved features of seasoned machines and raises the bar. Give your players what they want and let our PeakBarTop do the work for you. Go to IGT.com/PeakBarTop today to learn more. © 2021 IGT. The trademarks and/or service marks used herein are either trademarks or registered trademarks of IGT, its affiliates or its licensors. Artwork, descriptions, game play, photographs, videos, and other product details depicted herein are subject to change. IGT is committed to socially responsible gaming. Our business solutions empower customers to choose parameters and practices that become the foundation of their Responsible Gaming programs.

PORTRAIT-PERFECT PERFORMANCE.

The DIMENSION 49 ™ is making its debut as the fabulous, flat-screen, for-sale addition to the already-iconic DIMENSION™ family. Its attractive height and tech are the framework for must-have content, configurable to your floor. Start off with upwards of a dozen different launch games, and gather flocks of admiring players.

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