Global Gaming Business, November 2019 by Global Gaming Business

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GGB Global Gaming Business Magazine

GAMING IN WASHINGTON SOCIAL CASINO EVOLUTION YOUR CASINO WALLET GAMING & TECHNOLOGY AWARDS

November 2019 • Vol. 18 • No. 11 • $10

Connecting the

Community Konami’s focus on education and innovation means true corporate commitment

40 Under 40

Today’s Emerging Leaders of Gaming step forward

Reel

Revolution

Why the mechanical spinners are making a comeback

Association of Gaming Equipment Manufacturers

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CONTENTS

Vol. 18 • No. 11

november

Global Gaming Business Magazine

COLUMNS

14 COVER STORY

The New Konami

10 AGA Keeping It Real

Konami Gaming has built a talented new team of veteran executives, and is expanding its game library to meet the needs of modern casinos. All the while, the company has been a model corporate citizen, exemplified by its partnership with the University of Nevada, Las Vegas.

Elizabeth Cronan

12 Fantini’s Finance Strip Show Frank Fantini

48 Making My Point Don’t Be Hasty Roger Snow

By Frank Legato

DEPARTMENTS

On the Cover: Dr. Marta Meana, President, University of Nevada, Las Vegas; and Tom Jingoli, Executive Vice President and Chief Commercial Officer, Konami Gaming

FEATURES 24 40 Under 40 The annual “Emerging Leaders of Gaming 40 Under 40” list includes these 10 profiled movers and shakers, and others to be profiled throughout the year. The list is compiled by GGB, Global Gaming Expo and The Innovation Group. By Dave Bontempo, Maria Casias, Allison McCoy, Marjorie Preston and Bill Sokolic

32 Northwest Passage

42 New Payment Paradigm Digital wallets are on their way to replacing cash on the casino floor, as suppliers continue to offer payment options from deposits to smartphones.

By the Numbers

5 Questions

11 AGEM 54 Frankly Speaking

46 Top of Their Game

56 New Game Review

The 18th annual GGB Gaming & Technology Awards recognize the top innovators in the gaming industry. By Patrick Roberts

58 Goods & Services 60 Cutting Edge 61 People 62 Casino Communications With Mark Giannantonio, President & CEO, Resorts Atlantic City

By Dave Berns

The mechanical reel-spinning slot represents the oldest genre on the slot floor, but it is still one of the most popular, as manufacturers continuously reinvent the stepper game.

The Agenda

By Dave Bontempo

The gaming industry in the state of Washington is growing, with the state’s tribal operators already employing more than 30,700, and more expansion on the way.

36 Reel Time

50 Social Strength An increasing number of operators are relying on social casinos as a way to keep their brands in front of customers and increase returns to the physical gaming floor. By Marjorie Preston

By Marjorie Preston NOVEMBER 2019 www.ggbmagazine.com

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THE AGENDA

Misspent Youth

Vol. 18 • No. 11 • NOVEMBER 2019 Roger Gros, Publisher | rgros@ggbmagazine.com twitter: @GlobalGamingBiz Frank Legato, Editor | flegato@ggbmagazine.com twitter: @FranklySpeakn

By Roger Gros, Publisher

n this month’s issue we publish our annual “40 Under 40” list. This is a feature we’ve been doing for seven years every November, and recently have linked up with The Innovation Group’s Emerging Leaders of Gaming program that they launched at G2E three years ago. Since both our organizations were recognizing the excellence of young people in the industry, it only made sense for us to work together on this. Truth be told, it’s always one of my favorite features and events of the year. And more truth, it’s a little selfish on my part. While I really enjoy the young people in the industry and am honored to recognize them, it’s something that energizes me. After 40 years in the business, it’s a delight to see people coming into the industry who are so enthusiastic and committed to success. I remember feeling that way, and I get a boost of adrenaline just being around it. There are so many great young people in the industry. This year, we got nearly 200 nominations for the 40 Under 40 honors. It was extremely difficult to narrow down the list of amazing people who were nominated (or nominated themselves). Many of the industry’s leading companies, tribes, law firms and regulatory bodies participated, and they clearly are as thrilled about the enthusiasm of the nominees as we are. I think back to my time under 40, which is many years ago. I didn’t even get into the industry until I was 30, chasing a rock ’n’ roll dream before that. But when I got serious about making a living, I took a job as a dealer in Atlantic City. I continued as a dealer for seven more years until I switched sides and began to report on the business. But I would never have been able to take on some of the responsibilities that our 40 have. Granted, I didn’t have the education or really the experience to advance much further. (OK, I could have been a supervisor, but I had a big mouth, so I disqualified myself.) So I’m

much better on this side of the fence, where I can understand casino operations but don’t have to implement them. When the first Emerging Leaders reception was held by The Innovation Group three years ago, they invited the legendary John Acres to speak to the audience. What a great choice, I thought. Acres developed so many cutting-edge products and launched so many people in this business, who better to inspire these up-andcomers? Well, as usual, John was blunt and honest. He started his talk by telling them how sorry he was for them. What?? He explained that the business today is so corporate and buttoned-up that there is little opportunity for someone with a radical idea to get it accepted, developed, licensed and operating. He said those ideas will get shot down well before they reach a respected decision-maker. Now, John had a point. Since most of the big companies are corporate and publicly held, they really can’t take a chance to risk capital on an idea that may not bear fruit. John should know. Several of the companies he founded were bought and the innovation and creativity those companies had contained quickly fizzled away. But if you really look closely at the innovations being developed today in our business, it’s often smaller, privately held organizations that are able to take risks, are nimble, and can turn on a dime. The runway (funding) has to be long enough, but there are plenty of companies that still value people who push the envelope. In this issue, we profile the first 10 of the 40 (every subsequent month of GGB will add three more). When you read the stories of these young people, you’ll see that there is a lot of creativity, ambition and enthusiasm for the business. And you know what? I’ll bet John Acres would be first in line to hire any of these talented individuals for his next groundbreaking product he’s developing to rock the industry once again.

Global Gaming Business NOVEMBER 2019

Marjorie Preston, Managing Editor mpreston@ggbmagazine.com Monica Cooley, Art Director | mcooley@ggbmagazine.com Terri Brady, Sales & Marketing Director tbrady@ggbmagazine.com Floyd Sembler, Business Development Manager fsembler@ggbmagazine.com Becky Kingman-Gros, Chief Operating Officer bkingros@ggbmagazine.com Lisa Johnson, Communications Advisor lisa@lisajohnsoncommunications.com twitter: @LisaJohnsonPR Columnists Elizabeth Cronan | Frank Fantini Roger Snow Contributing Editors Dave Berns | Dave Bontempo twitter: @bontempomedia Maria Casias | Allison McCoy Patrick Roberts | Bill Sokolic __________________

EDITORIAL ADVISORY BOARD Rino Armeni, President, Armeni Enterprises

•

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

• Julie Brinkerhoff-Jacobs, President, Lifescapes International

• Nicholas Casiello Jr., Shareholder, Fox Rothschild

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

• Dean Macomber, President, Macomber International, Inc.

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

• Jim Rafferty, President, Rafferty & Associates

• Thomas Reilly, Vice President Systems Sales, Scientific Games

• Michael Soll, President, The Innovation Group

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

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

• Roy Student, President, Applied Management Strategies

• David D. Waddell, Partner Regulatory Management Counselors PC Casino Connection International LLC. 901 American Pacific Drive, Suite 180 • Henderson, Nevada 89014 702-248-1565 • 702-248-1567 (fax) www.ggbmagazine.com The views and opinions expressed by the writers and columnists of GLOBAL GAMING BUSINESS are not necessarily the views of the publisher or editor. Copyright 2019 Global Gaming Business LLC. Henderson, Nevada 89014 GLOBAL GAMING BUSINESS is published monthly by Casino Connection International, LLC. Printed in Nevada, USA. Postmaster: Send Change of Address forms to: 901 American Pacific Dr, Suite 180, Henderson, NV 89014

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BY THE

NUMBERS

More for Less? T

he year 2020 and ahead will see Las Vegas adding thousands of hotel rooms to its inventory. With the looming openings of Resorts World Las Vegas, Circa (Downtown) the Drew (formerly the Fontainebleau) and others, the capacity will expand, but will the revenue per available room (RevPAR)? At the same time, however, more convention space will debut. Along with the recently completed expansions of the Mandalay Bay and MGM Grand meeting spaces, the Las Vegas Convention and Visitors Authority is adding more than 1 million additional square feet, and Caesars is about to debut the Caesars Forum, 550,000 square feet of meeting space behind the Linq, the High Roller observation wheel and the Flamingo. So will this increase in meeting space encourage RevPAR to continue to increase at the same time room inventory soars? Check out the charts at right—the top chart is the RevPAR through May 2019 and the bottom is the convention attendance for the same period. We’ll revisit it later with the data supplied by RCG Economics, the most complete source of business information in Nevada. To see the complete research, visit RCG1.com.

Is Bigger Better?

Top Indexing Cabinets - Jumbo

he trend toward the giant slot machines makes the cabinets that hold those games much more important. In the latest EilersFantini Cabinet Performance Report, one of the most volatile sectors was the Jumbo sector. Since they are so big, Jumbo cabinets take up a lot of space, and if they don’t perform they are removed rather quickly. The report indicates that Aristocrat’s Behemoth cabinets have dropped in number while IGT’s Megatower has increased numbers and win to take the top position. And as the report indicates, only the strong survive in this category. To obtain a copy of the report, contact Todd Eilers at teilers@ekgamingllc.com.

Global Gaming Business NOVEMBER 2019

Bring the longest running game show in history to your floor. The Price is Right ® Plinko Slots gives players their chance to drop Plinko chips for big payouts. Create the ultimate Showcase with this three game family. All of this could be yours! Contact your Account Manager today to add a brand 5.3 million viewers love! © 2019 IGT. The Price is Right®/©: 2019 Licensed by FremantleMedia North America, Inc. All Rights Reserved. The trademarks and/or service marks used herein are either trademarks or registered trademarks of IGT, its affiliates or its licensors. 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 Patrick Bosworth Chairman, Duetto

wo of the three founders of Duetto, Patrick Bosworth and Marco Benvenuti, have extensive experience in the gaming industry. That experience led them to develop the revenue management system that has created the Duetto success story. The company is ready to take the next step as Bosworth is elevated to chairman of the board. He was joined by the new president of Duetto, David Woolenberg, when he met with Roger Gros, the publisher of GGB, at the Duetto offices in Las Vegas in September. To hear a full podcast of this interview, visit GGBmagazine.com or subscribe to GGB Podcasts on iTunes or Spotify. GGB: What was the state of revenue management when you left Wynn Resorts to form the company nine years ago? Bosworth: Revenue management has been around since the mid-1980s. It’s just that they haven’t been used to their full potential, partially because, particularly in gaming, the systems didn’t reflect the way casinos actually run their business. You were using technology like Excel, which had a hard time handling all the data, and you had to ignore most of the recommendations. It was one of the reasons we decided to start the company. So we built the company using the tools for the purposes that were intended. You’d use most of the recommendations suggested by the tool instead of overriding them. And frankly, our timing was good. It was a time when gaming and the overall hospitality industry was looking toward automation and using analytics to a greater extent. That tailwind has helped us.

1 2 3 4 5

“The use of the Wire Act to create new federal crimes is the type of creative interpretation of the law that you, I, and others have properly criticized when done by other federal agencies and federal courts.” —Ron Paul, former presidential candidate, railing against attempts to have the feds shut down online gaming through a reversal of the 1961 Wire Act

CALENDAR November 4-6: Sports Betting USA Investment and Regulation Forum, New York City. Produced by Clarion Gaming. For more information, visit sportsbettingusaconference.com. November 6-7: GSA Technology Summit: Focus Artificial Intelligence, Hyatt Regency San Diego. Produced by the Gaming Standards Association. For more information, visit GamingStandards.com. November 8: European Gaming Summit, Milan, Italy. Produced by European Gaming Media and Events. For more information, visit EuropeanGamingCongress.com. November 20-21: Balkan Entertainment & Gaming Expo (BEGE), Sofia, Bulgaria. Produced by BEGE. For more information, visit BalkanGamingExpo.com.

How much has changed since those days? Unfortunately, many of the big companies still use Excel spreadsheets. Employees spend the entire day hand-keying in overrides and doing things manually when intuitively you know there should be a better way.

November 21-23: Gaming in Spain Conference, Santiago Bernabéu, home stadium of Real Madrid, Madrid, Spain. Produced by Gaming in Spain. For more information, visit conference.gaminginspain.com.

So what are you doing differently than other companies were doing at that time? How did you fix what was broken? You pull together as much relevant data as you can. You configure the system to match the strategy of the casino resort. And then you develop algorithms to help automate, first the most routine decisions, because the vast majority of your day looks like other days. There’s a lot of commonality between certain days of the week at certain times of the year. Then you have to empower the people at the properties to take a hard look and understand more deeply the exceptional days. You still need to have a prediction about the future, but you’re arming your people in your revenue meetings with the information they need to exercise their own judgement to interpret the more exceptional things they see.

November 27-29: SIGMA Europe, Fairs and Conventions Centre, Ta’ Qali, Malta. Produced by SIGMA. For more information, visit SIGMA.com.mt.

Duetto was recognized in the hospitality business early on, but you had some great experience on the casino side, too. Why did it take longer to get noticed in gaming? The short answer is that casinos are the most complicated part of the hospitality business because of their size and complexity. It took us some time to build the products necessary to take into account all of the variances in gaming. For example, casinos had a very inflexible system where you were either a comp customer or casino rate or cash customer. That was costing the casinos a lot of money, and providing a worse customer experience. Say you’re a borderline casino rate customer who the casinos would love to comp on certain days. Under the old system, that wouldn’t have been allowed. With our system, you can show your borderline customers that they are valued and offer them comps on days when it makes sense, but other days they might have to pay the going rate. That way, you’re sure you have the right players in the building at any given time.

How important is real-time data to your products and services? It’s crucial. The goal is always to get as close as we possibly can to real-time data that’s wider and deeper than any external analyst has sent before. We have to make sure it’s always accurate. We’re constantly running data checks to assure data quality. That becomes the key to establishing trust from our customers. The data has to be accurate, as do our predictions for the future.

Said It”

Global Gaming Business NOVEMBER 2019

December 3-4: G2E Asia @ Philippines, Manila Marriott Hotel at Resorts World Manila. Produced by Reed Exhibitions China and the American Gaming Association. For more information, visit G2EAsia.com. December 9-11: University of Arizona Race Track Industry Program (RTIP) Symposium, Tucson, Arizona. Produced by the University of Arizona’s Race Track Industry Program. For more information, visit ua-rtip.org/symposium. December 9-12: Certificate in Gaming Leadership, Oklahoma State University. Produced by OSU Center for Executive & Professional Development, Hard Rock Casino Tulsa, and Gaming Management, University of Nevada, Reno. For more information, visit business.okstate.edu/cepd. January 10-12: National Council of Legislators from Gaming States Winter Meeting, Marriott Marquis & Marina, San Diego. Produced by the National Council of Legislators from Gaming States. For more information, visit nclgs.org/meetings. February 4-8: ICE London 2020, ExCel Centre, London. Produced by Clarion Gaming. For more information, visit ICELondon.UK.com. February 5-8: iGB Affiliate London 2020, ExCel Centre, London. Produced by Clarion Gaming. For more information, visit iGBAffiliates.com.

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AMERICAN GAMING ASSOCIATION

Keeping It Real A week of highlights, an ongoing commitment to responsibility

By Elizabeth Cronan

announced founding donations of $100,000 to ast month, the American Gaming Assolaunch the National Center for Responsible Gamciation convened the 22nd annual Reing’s Fund to Support Research and Sports Wagersponsible Gaming Education Week ing. AGA members GVC Holdings Plc., Hard (RGEW), showcasing our industry’s everyday Rock International, IGT and William Hill US, in commitment to protecting consumers, educating addition to NASCAR, also made significant conemployees, and promoting vibrant communities. tributions. The new fund is the first dedicated This year’s RGEW was particularly special—feasolely to expanding research on responsible gaming turing new investments, first-time congressional in sports betting, helping deepen our understandengagement, and historic commitments to advance research. We all know gaming is expanding at a rapid pace. The industry is addressing this growth in effective and innovative ways—and people are taking note of these efforts. Recognition for our work has reached the halls of Congress in Washington, D.C., where U.S. Rep. Dina Titus (D-NV) addressed RGEW in the Congressional Record for the first The Get to Know Gaming event held in September at UNLV time. Titus detailed the industry’s prioring of effective practices in new and existing marities as a firsthand observer of the great work that kets alike. has been done in her home state of Nevada, sayAGA members continued to make headlines ing, “The gaming industry goes to great lengths during RGEW. Caesars Entertainment Corp. to make sure employees are trained in best pracmarked a major milestone, celebrating its 30th tices for recognizing and dealing with problem year of responsible gaming programs. To comgaming and patrons are aware of options for help memorate the anniversary, they pledged more than if they need it.” $1 million to responsible gaming efforts. The AGA held a Get to Know Gaming event In addition, AGA member Gaming Laboratowith U.S. Rep. Anthony Brown (D-MD) in ries International, in conjunction with the AssociaMaryland, which has quickly grown into one of tion of Gaming Equipment Manufacturers, the country’s biggest gaming markets. MGM Naannounced a $200,000 donation to the Dr. Robert tional Harbor served as a fitting backdrop to the Hunter International Problem Gambling Center. RGEW discussion given everything the Maryland This is all in addition to the creative employee gaming industry and MGM Resorts International training, local events and social media discussion have done to promote safe and responsible behavior. that took place at casinos across the country. MGM recently surpassed 1 million interacRGEW 2019 reflects an industry that prioritions in its GameSense program nationwide, tizes responsible gaming as an integral part of which trains employees to have direct conversaeveryday operations. Thank you to everyone who tions with gaming customers before a problem participated in this historic week. might start. At another Get to Know Gaming event— Elizabeth Cronan is senior director of gaming policy hosted at the University of Nevada, Las Vegas’ Infor the American Gaming Association. ternational Gaming Institute—AGA and MGM

Global Gaming Business NOVEMBER 2019

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AGEMupdate AGEM MEMBER PROFILE

Next Gaming is creating skill-based games that can complement and perform well in either skill-based gaming environments or anywhere on the casino floor. With well-known brands from Taito, like Bust-A-Move and Arkanoid, Atari with Asteroids, Missile Command and Tempest, or proprietary game Z-Force, these arcade-style games appeal to a wide demographic from baby boomers to millennials. Next Gaming differentiates its games by focusing on delivering thrilling entertainment value along with the necessary performance metrics that are required in a casino setting. With the recent acquisition of Space Invaders from Taito and Centipede from Atari, Next Gaming will create two new immersive and entertaining skill-based slot experiences. Next Gaming has focused on creating games that appeal to a wide demographic audience which resonate with all age levels and offers an immersive, challenging and entertaining experience which is completely different from a traditional slot machine. They also understand the needs of both the casinos and their customers and have not sacrificed either. Customers want to enjoy their playing experience and derive value from their gaming budget. Of course, this includes a chance to win, and casinos need to retain a level of performance that is reasonable. With Next Gaming, â&#x20AC;&#x153;Where Skill Meets Thrillâ&#x20AC;? is the foundation upon which all of their games are built.

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 â&#x20AC;&#x201C; October 2019 â&#x20AC;˘ AGEM members had an in-person presentation at the October Board of Directors meeting by Bo Bernhard, executive director of the International Gaming Institute at the University of Nevada, Las Vegas. He highlighted that an announcement for the new executive director at the International Center for Gaming Regulation was imminent, which will fill the spot vacated by Andre Wilsenach last December. He also updated the group on developments at the UNLV Harry Reid Research and Technology Park that will see tenants such as Intel, Microsoft, LG, Adobe and Cox start to move in as early as November. He said the American Gaming Association is considering taking space in the park, and AGEM should do the same in the future. He encouraged gaming technology suppliers across the board to consider tenancy, and said UNLVâ&#x20AC;&#x2122;s Gaming Innovation Program will also be located at the park and continue to provide a pipeline of new games and other patented ideas to the gaming industry as a whole. â&#x20AC;˘ AGEM members were also updated at the board meeting on new developments related to the organizationâ&#x20AC;&#x2122;s interaction with the Nevada Gaming Control Board. It was noted the Technology Division has been more responsive to consistency and speed-to-market issues of late and that improvements to the New Innovation Beta (NIB) program are being considered. The GCB has also reached out to AGEM for input on potential updates to the â&#x20AC;&#x153;assume responsibilityâ&#x20AC;? language in current regulations. AGEM also provided a statement to the GCB that it is opposed to minors being able to participate in charitable lotteries and other activities within Regulation 4A that is being debated by both the GCB and the Nevada Gaming Commission. â&#x20AC;˘ The AGEM board approved an expenditure to provide an amicus brief in support of the New Hampshire Lotteryâ&#x20AC;&#x2122;s court case challenging the Department of Justiceâ&#x20AC;&#x2122;s interpretation of the Wire Act that could dramatically impact the gaming industry at all levels throughout the U.S. if the DOJâ&#x20AC;&#x2122;s position wins out. Press reports citing legal experts say the case is likely to ultimately be decided by the U.S. Supreme Court. â&#x20AC;˘ With G2E looming, the members were updated on pending important meetings with a delegation from at the the Japanese government as well as both operator trade organizations from Mexico. It was noted board meeting that press reports claiming Mexico President AndrĂŠs Manuel LĂłpez Obrador has outlawed any future casinos in the country were inaccurate, and that enough approved licenses exist to potentially double the number of casinos from the current 353 to more than 700. â&#x20AC;˘ AGEM welcomed a new associate members Central Account Management System (CAMS) and U.S. Bank. CAMS was recently acquired by former Nevada Gaming Control Board Chairman Mark Lipparelli.

UPCOMING EVENTS â&#x20AC;˘ The long-running Executive Development Program (EDP) is set for November 9-17 in Lake Tahoe, Nevada. AGEM is a supporter through the awarding of the annual Gender Diversity Scholarship, along with the European Casino Association and Clarion Gaming. This yearâ&#x20AC;&#x2122;s winner is Dolly Sananes Bascou, head of marketing and communications, gaming operations, at Monte-Carlo SociĂŠtĂŠ des Bains de Mer. â&#x20AC;˘ The AGEM-sponsored Eastern Europe Gaming Summit is set for November 19-20 in Sofia, Bulgaria.

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The AGEM Index increased by 27.33 points in September 2019 to 500.69 points, a 5.8 percent jump from August 2019. The growth was driven largely by an 18.6 percent increase in the stock price of International Game Technology Plc. (IGT), which increased from $11.98 to $14.21. The stock was responsible for 8.14 points of the monthly gain. Konami Holdings Corp. (TYO: 9766) experienced 8.4 percent price gain AGEM Indexâ&#x20AC;&#x2122;s an stock from ÂĽ4,815 to ÂĽ5,220, which led to an index contribution of 6.5 points. Overall, most AGEM Index companies reported increases in stock price during the month, with 10 trending positively and three moving negatively. The major performed and the stock indices well as the Dow Jones Industrial Average S&P 500 experienced monthly growth of 2.0 percent and 1.7 percent, respectively. The NASDAQ experienced a modest gain of 0.5 percent.

NOVEMBER 2019 www.ggbmagazine.com

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FANTINI’S FINANCE

Strip Show The resorts on Las Vegas Boulevard are going through ownership changes, but what will that mean for customers?

ow much different will Las Vegas Strip casino ownership be a year from now? On the surface, perhaps quite different. MGM Resorts reportedly might sell Bellagio and MGM Grand to Blackstone Group for up to $7 billion, and TI owner Phil Ruffin might buy Circus Circus. Caesars (CZR) is selling Rio to a real estate group for $516 million and Caesars overall is being sold to Eldorado Resorts. Eldorado, in turn, will try to sell one or more of Caesars’ properties. Ruffin has openly expressed interest in buying one or two, but he could remove himself if he buys Circus Circus. That would leave just Golden Nugget owner Tilman Fertitta as a publicly speculated buyer of an excess Caesars property or two. All the while, Blackstone is reportedly trying to sell Cosmopolitan. If these transactions come about, a lot of real estate will have changed hands, but the change in operations will not be as great. MGM would lease back Bellagio and MGM Grand, and Caesars will still manage Rio under a contract with the new owners. Further, any other property sales could lead to more lease-backs or management contracts where the owners change, but not the operators. MGM and Caesars continuing to manage properties they no longer own would be a disappointment to those who believe Las Vegas needs a greater variety of ownership. In that sense, there are now two camps on how the future can best unfold for Las Vegas. Activist investors have been pushing MGM to increase profitability by cutting expenses and monetizing its real estate. Similar investors have led to the impending sale of Caesars to Eldorado, which intends to cut at least $500 million a year in expenses. Much of that savings would come from reducing CZR’s bloated overhead. And Eldorado has proven it can boost profitability by cutting marketing expenses, even on lower revenues. On the other side are observers mostly without direct stakes in the companies who claim

By Frank Fantini

things like resort and parking fees are undermining the unique Las Vegas appeal. One of the most frequent questions I am asked by gaming executives of other companies is what impact I see from these fees. The questions come from CEOs, CFOs and other C-suiters from casino and supplier companies alike. And the questions are prefaced or couched in tones of disapproval. One CEO flat-out said he no longer goes to MGM Strip properties because he isn’t going to pay $25 to park. To date, there’s no clear evidence that the fees are harming business, though Las Vegas visitation has been softer this year than many would like. And this is capitalism. If the fees deter business, others will jump in to take advantage. Wynn has already rolled back fees, even though its affluent customers aren’t as likely to be price-sensitive as those of, say, MGM’s Luxor. Golden Entertainment’s Strat advertises its free parking. The bigger question might be the long-term impact of companies going to the asset-light model, selling their real estate for the quick highs of the cash they receive, but adding a recurring expense in the form of rent while losing the asset value of owning their real estate.

CONSOLIDATION, ONLINE STYLE In the who’da-thunk-it department, two companies that once seemed not especially formidable are about to form the world’s largest online and sports betting company. The Stars Group out of Canada and Flutter Entertainment out of Ireland and the U.K. already combine for a market cap of more than $12 billion, a number many investors figure will rise appreciably after their merger closes next year. It’s an outcome that seemed highly unlikely not long ago. Go back to 1988. Three Irish bookmakers merged to form Paddy Power, a modest company of 40 shops. The first half of the name illustrated its Irish roots. The second half was the name of one of the three partners considered to have the strongest brand recognition. Paddy Power had a strategy of ambitiously grow-

Global Gaming Business NOVEMBER 2019

ing its network of betting shops and attracting publicity by offering outrageous bets, some controversial—like the odds of Barack Obama being assassinated—and some just silly. The strategy worked. Paddy Power grew into a major competitor to the largest U.K. bookmakers, William Hill and Ladbrokes. It then bought exchange wagering pioneer Betfair, giving it a new line of business and a presence in the U.S. That presence has been strengthened by the purchase of fantasy sports operator FanDuel. The company, having changed its name to Flutter Entertainment, had become a powerhouse. The Stars Group had an equally improbable journey. It began in 2014 when a guy named David Baazov bought some small Canadian online gaming operations and named them Amaya. The small public company was of little consequence—until Baazov convinced bankers to lend him $3 billion to buy the two biggest names in online poker, PokerStars and Full Tilt. It was a risky move, not just because of the giant loan, but because the two poker brands were tainted by having operated illegally in the U.S. and in operating in non-legal markets elsewhere. But the gamble worked. Baazov separated the brands from their past owners’ misdeeds in the minds of regulators and Amaya became the world’s largest online poker operator. The real trick, however, was adding online casino games, recognizing that those who like to play poker also like other forms of gambling, and that online casino was rapidly growing while poker had matured. Baazov left Amaya under allegations of insider trading, but the renamed Stars Group prospered under current CEO Rafi Ashkenazi. He continued to diversify the Stars Group, made significant acquisitions and now, in selling to Flutter, is helping form a behemoth well prepared to capitalize on U.S. market. So, the next time you’re ready to dismiss the stock of a quirky and speculative upstart, remember Paddy Power and Amaya, because you never know. Frank Fantini is the editor and publisher of Fantini’s Gaming Report. For a free 30-day trial subscription email subscriptions@fantiniresearch.com.

Working for Generations Our future is shaped by the decisions we make today. That’s why we’re investing $50 million to serve the needs of American Indian and Alaska Native communities, from scholarships and small business support to financial education and cultural preservation initiatives. For more than 50 years, we’ve been working together with Native communities and we’ll continue to work together to make better tomorrows for generations to come.

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All Aboard

Konami Gaming invests in talent, technology and education to step up among the elite slot suppliers in the industry By Frank Legato

“A

ll Aboard” is a premium slot game launched by Konami Gaming at last month’s Global Gaming Expo, but it also could be an overall slogan for the near future of the Las Vegas-based supplier. Konami Gaming, the U.S. subsidiary of Japanese video game giant Konami Holdings Corporation, has remained near the top of the worldwide slot market for years, thanks to an R&D staff that has the unique advantage of tapping into the resources of its famous parent company, which is celebrating its 50th anniversary this year. But what has remained elusive for Konami Gaming is President and CEO Steve Sutherland’s stated goal of cracking the slot market’s top three—of stepping onto the “podium,” as he calls it, as one of the top three slot manufacturers in the business. Around a year ago, Konami’s top management launched a plan to zero in on that goal. The company assembled a veritable dream team of North American slot supply veterans, tasked with the common goal of taking Konami’s market share to the next level. “We felt it was time to make a change,” comments Tom Jingoli, Konami Gaming’s executive vice president and chief commercial officer.

Global Gaming Business NOVEMBER 2019

“We really wanted to bring in a team that had a full understanding of the North American gaming market.” “The global industry is challenged by the need to appeal, attract and engage a broader segment of the marketplace,” comments Sutherland. “The slot floor landscape is shifting at an incredible rate, and there are a number of things needed with game play, user interaction, and innovative components to reach the next-generation gamer. “At the same time, operators want slot entertainment that makes sense for their business, which is why Konami is set on delivering superior results, reliability, and return on investment for our customers.” To deliver that return on investment, Konami has made investments of its own, in some of the top talent in the business. The first addition was 20-year slot supply veteran Victor Duarte, brought in as senior vice president and chief product and strategy officer. Duarte has a distinguished resume in gaming, both on the casino and lottery sides, having led gaming and content efforts for GTECH, Spielo and IGT, where he was global chief product officer, gaming. Appropriately, Duarte was hired the Monday after G2E last year. “We asked Victor to look at our entire game side—R&D, and what we were

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Opposite page: Sathish Anantharaman, Vice President, Systems Software Development; Greg Colella, Vice President, Games Product Management; Tom Jingoli, Executive Vice President & Chief Commercial Officer; Victor Duarte, Senior Vice President & Chief Product & Strategy Officer; Tom Soukup, Senior Vice President & Chief Systems Product Officer; Sina Miri, Vice President, Innovation and R&D Strategy

“We decided to make a significant investment in both games and systems R&D. Everything we’re doing is incremental—none of that investment will detract from what we’re doing today.” —Tom Jingoli, Executive Vice President and Chief Commercial Officer, Konami Gaming

doing internally and externally,” Jingoli says. “But we knew this was not going to be a one-person hire. We had to bring in a team.” Next to join the team was Greg Colella, another 20-year veteran on the supply side, from Shuffle Master to Mikohn to Bally and Scientific Games. Colella, now Konami’s vice president of games product management, had been in charge of product management for 14 years at Bally before being named vice president of product marketing when Bally was acquired by Scientific Games. Next came Sina Miri, who had been a product management and R&D vice president at both IGT and Scientific Games, hired as vice president of innovation and strategic R&D; and Sathish Anantharaman, another longtime Scientific Games product development veteran, as vice president of systems software development and services. “It’s taken us a little while to put the team together, but we’re really happy with the individuals that we brought in,” says Jingoli, “along with the people we had, who have put a lot of time and effort in to get Konami where we are today. We’re very proud of where we’ve gotten organically, and we felt it was time to really invest in resources to take the company to the next level.” Finally, as the company prepared for this year’s G2E in late summer, Konami’s board made a commitment to invest record resources on R&D, including additional game design studios. “As a board, we decided to make a significant investment in both games and systems R&D,” Jingoli says. “Everything we’re doing is incremental—none of that investment will detract from what we’re doing today.” “Konami’s a company I’ve always admired,” comments Duarte. “It’s part of a big, profitable, strong entity, so I thought that this organization always had the potential to grow. And at this phase in my career, that’s what I really got motivated by—trying to grow something. We’re willing to invest, we have the capacity to invest, we’ve got a balance sheet that has plenty of room to invest, so let’s grow this company.” Duarte, like Jingoli, stresses that this growth is all incremental. “As you begin to bring new elements into the company, you try to understand what is working and how you can optimize that a little better,” he says. “And I was very fortunate. Team members like Steve Walther (senior director of games product marketing), the studio heads that we have in Japan and Australia, and here in Las Vegas, all are very talented, creative people. So, I had a good baseline to begin with.” Over the past year, Konami has concentrated on maximizing the current product library and working on technology—“on the overall plat-

form, which we’re going to leverage over the next three to five years,” says Duarte. “We’re really setting the table for growth, and I believe at G2E, we showed, very significantly, that we’ve made those investments. We are listening to our customers.” The next few years will see the company act on operator feedback with product areas where Konami has not focused in the past, Duarte says—areas like premium recurring-revenue product and the VLT/VGT market. The All Aboard game launched at G2E is the first in a new class of Konami premium recurring-revenue video product. “All Aboard was developed by our sister company, Konami Australia, and achieved very strong success there in the casino and club and pub market,” Jingoli says. “So, we’re expecting big things— it’s really our first entrée in a while into the premium market. The team has done a great job of commercializing that product, and it was very well-received at G2E this year.” But premium for-lease product is only the beginning of the new verticals the company will explore. “We have a plan in place for the next 18 months, to three years, to five years,” Jingoli says. “When you look at the different verticals that we are in, we are not in a lot of space where we need to be—whether that’s Class II, or VLTs, or wide-area progressives.” On the front lines of this effort will be Colella. “One of the first things on the plate is to build out the product plan,” Colella says. “We’re making sure we have a strategic five-year plan, and a more tactical kind of 18-month plan. Then, we’ll start to build out some of the new platforms. “While supporting our new product lines, we’re making sure we’re still focused in on what made us successful in the first place, because as we talk to our

“We’re really setting the table for growth, and I believe at G2E, we showed, very significantly, that we’ve made those investments. We are listening to our customers.” —Victor Duarte, Senior Vice President and Chief Product and Strategy Officer, Konami Gaming NOVEMBER 2019 www.ggbmagazine.com

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customers, it’s obvious there is still a lot of passion on part of the players for our core games. We have three different development centers right now—in Las Vegas, in Japan, and in Australia—making sure that we pull all of those ideas into a roadmap that is going to be commercialized throughout North America, Europe and South America.” New product groups like VLTs, pre“While supporting our mium games and multi-site progressives new product lines, could even be joined by a return to the stepper market, where the company has we’re making sure been dormant the past few years as far as we’re still focused in new product entries. According to Jingoli, on what made us the market for steppers has declined in the Western U.S. and Canada, while in the successful in the first East, it’s not unusual to see steppers makplace, because ing up a larger share of the floor. as we talk to our “Are we going to jump back into the deep end and start developing a ton of stepcustomers, it’s per product? Probably not,” Jingoli says. obvious there is still a “But I think we’re going to look at some lot of passion on part key initiatives, and some core things that we could do in that space, because one of of the players for our the things Steve and I had tasked the group core games.” with is, ‘Let’s get into some of the verticals —Greg Colella, Vice President that we’re not in right now.’ We need to do of Games Product Management, that in order to grow our footprint, Konami Gaming whether it’s Class II, VLT, or back in the stepper market.” “Konami is where it is, without a full complement of some of these other business segments,” adds Colella. “That’s something important to keep in mind. Just getting into the premium space will be a big advantage for us, and I think there is some runway there. Customers are looking for something that may be at a little bit different price point, a little bit more affordable, and I think some of the things that we’re doing right now will really fit into that category. “The whole thing we’re trying to do is add those layers into the business, so we can grow the business the way that we want to. You’re going to see a lot of ‘stay-and-spins,’ a lot of linked progressives— which are really the types of games that players are playing right now—and we’re going to have a unique Konami twist, with some of our own brands that are going to be part of that.”

Starting Point This year’s G2E was the public starting point of Konami’s expanded product portfolio. “You certainly saw a different look to our booth than you’ve seen from Konami in the last five or six years, and it’s fairly remarkable what we’ve done as a team—not just Victor and his group, but our entire team,” Jingoli says. “It’s really changed the look 16

Global Gaming Business NOVEMBER 2019

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Konami’s SYNK Vision product has the ability to do facial recognition at the machine

and feel of what we’re going to do today and in the future.” The new premium product line comes with its own new cabinet—“a fully merchandised offering that will announce our entry into the premium space,” says Duarte. “It was designed to create a contemporary player experience that is different from Konami of the past. And the integrated merchandising—the sign packages, the chair, the cabinet, in one full system, with a lot of flexibility—is really what the vision led us to. “And we have a launch library that we have a lot of confidence in, because there’s some depth to it, in terms of performance. We’ve taken our top-performing game from Australia, which is a highly competitive market, but you also have a game coming from the Japanese studio, a game family coming from the Las Vegas studio, and another one in the reserve. “So, we have a number of game families built by a diversified studio base that I think is going to be a real good testimonial for our capability. Obviously, as we grow and invest in incremental studios and creative resources, we’re going to be able to do even more of that.” “It’s important we have a roadmap,” adds Jingoli. “In talking to customers, they want to see us in that space, but they don’t want to see a new cabinet and one or two titles. We like to think every game we develop is going to work, but customers want to see a pipeline. It’s not going to be one title; there’s going to be six or seven titles that are going to roll out over an incremental period.” One thing that won’t change is the healthy interaction between Konami Gaming and its parent company. “Our parent company is always in our DNA, and it’s always going to be there,” Jingoli says. “And it’s a great asset for us to have. We don’t want to detract or deter from our core development and what we’re doing, whether it’s our video product, or exploring these new verticals to get in. But we are certainly going to always have a team that looks at the parent company’s products. “Silent Hill is a good example of a game that came out of the Konami Holdings IP portfolio that was very well-received at G2E this year. We’re always going to look to leverage our parent company to our advantage.”

Super System The new efforts will not leave behind one of Konami’s strong points, the popular SYNKROS casino management system. “It’s really an exciting time in our systems group,” Jingoli says. “We’ve had some significant wins, from RFPs to new installations. One of the reasons we brought Sathish in is that he has the experience to really look at the way the market and business segment is shifting on the systems side. “We made significant changes to the system architecture, that allowed us to win a Carnival or a Golden Entertainment, and we feel we’re in a position now that we can service any operator in the world with our SYNKROS system.” 18

Global Gaming Business NOVEMBER 2019

Konami has rolled out a suite of system-delivered bonusing and mobile capabilities that are being incorporated into SYNKROS. “One of the key pieces of functionality displayed at the show was our SYNK Vision product,” says Walther. “That has the ability to capture biometric player tracking at the machine.” Konami’s advanced SYNKROS marketing toolkit offers SuperSeries, BonuStream, and True-Time Tournaments—all system-delivered bonusing solutions designed to reward loyal players directly at the machine. One innovation allows carded guests to be entered to win a mystery progressive jackpot at any equipped point-of-sale on the property—from slots to restaurants. There also are modules designed to reward good play, even if it is uncarded. “The systems business has never been better for us,” says Jingoli. “We’re really excited about where that group is.” “The convergence between systems and games and hardware is coming quicker now than in the past,” adds Duarte. “It wasn’t the revolution that people expected five or seven years ago, but it is happening now. That’s one of the reasons we brought on Sathish—to really understand the intersection between games, hardware and the systems, and how we can optimize that overall experience.” For the next several years, established products such as SYNKROS, core video groups built around cabinets like the new KX43 and Concerto Opus, and specialty products like the Fortune Cup and the new Fortune Cup Derby Deluxe will be augmented by the new face of Konami—all the new talent, all the new product groups. “Konami is dedicating record resources to advancing industry innovation, through investment in technology, talent, research and design,” says Sutherland. “Our latest games product line, which premiered last month at G2E Las Vegas, has been developed from the ground up with a focus on the player. It explores new avenues of hardware innovation, specifically aimed at creating more value for operators, and is the first step toward a significant expansion in our gaming entertainment offering.” “It’s a great time to be at Konami,” says Duarte. “There’s something going on in this company that’s exciting, and it perpetuates itself.” “Our organization is highly focused on changes to help pioneer new slot entertainment and technology,” Sutherland says, “to cater to today’s players in the best ways possible. For 50 years, Konami Holdings Corporation has been in business, and has built a legacy in gaming entertainment across diverse platforms and genres. “Konami Gaming is extending that expertise and heritage to support the casino gaming industry in ways that only Konami can deliver. Across games and systems R&D, we are doubling down on investment to serve changing market needs at an unprecedented pace.”

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The Next Generation Konami Gaming’s partnership with the University of Nevada, Las Vegas is preparing the next generation of industry innovators

n 2014, Konami Gaming bought a game called Domino Dragon, a Chinese domino video wagering game involving a new method of determining slot outcomes using elements of pai gow tiles. It’s the kind of innovation Konami regularly pursues, but there was one unique aspect of this game: It was created, and patented, by a college student. Domino Dragon was the first casino game patented by a student-inventor as part of an innovative gaming course at the University of Nevada, Las Vegas that was created by Dr. Mark Yoseloff, the former Shuffle Master chairman who now heads the Gaming Innovation Program at UNLV’s William F. Harrah College of Hospitality. The program was developed in partnership with Konami Gaming. Konami’s fingerprints are all over the hospitality college, from the gaming lab at the Stan Fulton Building—a mock casino stocked with donated Konami games—to the college itself, which has received $2.5 million in donations from the supplier over the past five years, all dedicated to improving the success of the next generation of casino industry professionals. “One of the amazing things about the Konami Gaming Lab is that it’s the most productive lab on campus for patent activity,” says Dr. Marta Meana, president of UNLV. “Just last year alone, six patents were issued through the work that occurs in that lab, which is pretty amazing.” Konami’s philanthropic relationship with UNLV dates back to 2000, but was ramped up in 2010, when the supplier donated $1 million to help build the hotel school, the Harrah College of Hospitality. The Konami Gaming Lab was established the following year. The supplier’s ongoing support of UNLV and the Innovation Program has been driven largely by Tom Jingoli, Konami’s executive VP and chief commercial officer—and a UNLV alum, having earned his master’s degree there in 1996. “Konami has been instrumental in the success of our Hospitality and Gaming Innovation programs,” says Meana. “It certainly has been a very rich partnership for us.”

Dr. Marta Meana, President, University of Nevada, Las Vegas; and Tom Jingoli, Executive Vice President and Chief Commercial Officer, Konami Gaming

After Konami received its Nevada gaming license in 2000, Konami Holdings founder and Chairman Kagemasa Kozuki directed that as Konami Gaming grew, the supplier should be involved in local philanthropic ventures as part of being a good corporate citizen. That same year, the company made it first large contribution to UNLV’s Harrah College of Hotel Administration. “There are certainly a lot of worthy initiatives and causes throughout the Las Vegas Valley, but the one that we felt was most important was a partnership with the university,” Jingoli says. “And not just a partnership with the hotel school, but with the entire university. If you look at our company, we have mathematicians, we have engineers, we have bilingual professionals. It’s not just about people that graduated from the hotel school who have an understanding of the gaming industry. “We hire a significant amount of resources and team members from the university, so we felt a partnership with them was great, and it was an easy sell internally. Japan felt it was a great thing for us to do. So, we’ve always been very active in giving.” He adds that it’s not just money Konami gives the university. “We helped rebuild their gaming lab, we put product in there, we helped secure product in there,” Jingoli says. “We have engineers from (Chief Product Officer Victor Duarte’s) team that sit on the advisory committee for the engineering

school, and provide help with curriculum. It’s not just about the hotel school—it’s about the engineering school; now there’s also a law school. We can fill the fruits of our labor.” Jingoli says it comes back to the company in the creation of graduates that will succeed in the business—hopefully, at Konami. “It’s nice to be able to hire somebody coming out of the university, which is literally across the runway, who is ready to be employed,” he says. “We have to recruit talent, but sometimes it’s hard to get talent to move here.” Jingoli estimates the most important partnership was the one that helped build the physical hotel college. “It’s an absolutely fabulous building,” he says. “It opened last year, and it is now the No. 1 hotel school in the country. We were happy to put our name on that, with seven other key donors.” “Konami has also helped us out in another very important way,” says Meana. “They’ve started to open doors for us internationally. In the recent past, the Japanese government has been considering introduction of integrated resorts, and our researchers at the International Gaming Institute have been a resource for the government and business leaders in Japan who are considering this. “And Konami, which is headquartered in Japan, was really instrumental in introducing us to these leaders. So, that’s another really creative way in which UNLV and Konami have been partnering.” “It’s been a really good partnership for us,” says Jingoli. “I know we’ve done significant internships throughout the company, and it’s always great to keep homegrown talent at home. I think it’s important for a vibrant city like Las Vegas to have a university that contributes to its well-being. If you go up and down the Strip, on the casino side, the number of graduates that went to the hotel school and to UNLV is pretty significant.” “UNLV is very invested in being integrated into this community—the business community and community overall,” says Meana, “and the kind of partnership we have with Konami is really exemplary. The innovation that can happen when industry and a university collaborate, to me, is a perfect example of something that we value very much as a university in the 21st century that wants to be part of everything that goes on in this city.” —Frank Legato

NOVEMBER 2019 www.ggbmagazine.com

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The Young & The Restless The 2020 Class of the Emerging Leaders of Gaming 40 Under 40 represents the best gaming has to offer

he young leaders of the gaming industry are making themselves known. The nominations for the 2019-2020 class of the Emerging Leaders of Gaming 40 Under 40 numbered almost 200 people. Interest in the program was at a historical high, with nominations pouring in from around the world. Produced in conjunction with The Innovation Group, founders of the ELG program, the ELG 40 Under 40 represent a slice of today’s next-generation leaders, recognizing young professionals already making significant impacts in the casino gaming industry. GGB Magazine launched the 40 Under 40 program seven years ago, and combined it with the Emerging Leaders of Gaming three years ago. Selected from nominations driven by an open call to the industry, the newest class of honorees embodies all aspects of gaming, including commercial and tribal casinos, manufacturers, law, regulation and entertainment. “The ELG 40 Under 40 has become the most important vehicle for recognition of rising leaders in the gaming industry,” says Roger Gros, publisher of GGB magazine. “With a record number of nominations, the list was very difficult to narrow. It’s a testament to the bright future of the industry just how competitive the process has become.” Michael Soll, president of The Innovation Group, is encouraged by ELG’s continued growth. “For the seventh consecutive year, we’ve seen enthusiasm and interest for this program grow,” says Soll. “New leadership can serve to invigorate an industry, and we’re excited to play a key role in identifying individuals with the talent and creativity to lead gaming into the future.” The Emerging Leaders of Gaming 40 Under 40 was honored at a cocktail event during G2E.

Global Gaming Business NOVEMBER 2019

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2019-2020 Class of Emerging Leaders of Gaming 40 Under 40 Filippos Antonopoulos, CEO & Founder, Vermantia Stewart Baker, Executive Vice President & Chief Financial Officer, Inspired Entertainment, Inc. Phil Bernard, Vice President, Gaming Equipment, Eilers & Krejcik Gaming, LLC Steven Brody, Digital Compliance Manager, William Hill US Brian Bulko, Compliance Manager, Speaking Rock Entertainment Center Lucas Cai, Director, Casino Operations, Marina Bay Sands Shawnna Castellano, Region Director, National Indian Gaming Commission Amy Castro, Gaming Operations Analyst, Ocean Downs Casino Teri Chan Palomaki, Vice President, Financial Planning & Analysis, Scientific Games Dan Cherry, Vice President of Gaming Operations, Penn National Gaming Dan Farnon, Director, Strategic Accounts, IGT Jessica Feil, Senior Director, Government Relations, American Gaming Association Josh Ford, Chief Information Officer, Jamul Casino Kevin Fulmer, Vice President, Digital Sports, Caesars Entertainment Daniel Hanson, Executive Director, Snoqualmie Gaming Commission Harry Jackson III, Associate, Fox Rothschild LLP Lana Kotur, Vice President of Customer Success, VizExplorer Afshien Lashkari, Engineering Manager, New Jersey Division of Gaming Enforcement Brandon Loeschner, Partner, National Practice Leader, Gaming Services Group, RubinBrown LLP Meredith McEvoy, Engineering Operations Director, AGS Max Meltzer, Chief Commercial Officer, Kambi Group Plc. Bhavishi Patel, Vice President of Employee-Owner & Guest Experiences, Eureka Casino Resort Lukas Pesek, Vice President of Food & Beverage, Excalibur Hotel and Casino Samantha Powell, General Manager, GLI APAC (Australia and Macau) Region Guillermo Ramirez Carmona, Mechanical Engineer, Incredible Technologies Danielle Rankin, Director of Business Development, Konami Gaming, Inc. Loren Rosenberg, Vice President, Product & Market Strategy, Everi Holdings, Inc. Karl Rutledge, Partner, Chair-Commercial Gaming Group, Lewis Roca Rothgerber Christie LLP Ryan Sawyer, Vice President/Project Director, Analytical Environmental Services Allen Schultz, Director of Slot Performance, San Manuel Casino Lindsay Slader, Vice President, Regulatory Affairs, GeoComply Nicole Stewart, Vice President/Transportation Engineer, Urban Systems, Inc. Kelly Sullivan, Director of Global HR & Development, Mohegan Gaming & Entertainment Diana Szorc, Digital Marketing Manager, Rush Street Gaming Rishi Tirupari, Vice President, Sustainability, Wynn Resorts (Macau) Simone Tyree, Assistant Casino Manager, Caesars Entertainment (Paris LV) Luciana Van Sickle, Global Strategic Sourcing Manager, Aristocrat Technologies Adam Wexler, Chief Executive Officer, Performance Predictions Christopher Wilcock, Executive Director of Casino Optimization, The Venetian Resort Las Vegas LLC Brian Wyman, Senior Vice President, Operations & Data Analytics, The Innovation Group

NOVEMBER 2019 www.ggbmagazine.com

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2019 Emerging Leaders

40 UNDER 40 Changing Lanes

The Dynamic Regulator

Shawnna Castellano

Daniel Hanson

Region Director, National Indian Gaming Commission hawnna Castellano changed her college major more than once, searching for a degree to complement her skills. “One of my first jobs was in revenue audit for my tribe’s casino, so I studied accounting,” says Castellano, a member of the Lac Courte Oreilles Tribe in northern Wisconsin. “I quickly knew accounting wasn’t for me. I became a compliance officer at a tribal casino in Milwaukee. I ended up opening up a tattoo shop, so I changed my focus to business management courses.” When she went to work for the National Indian Gaming Commission as a senior compliance officer, Castellano worked with federal regulations, which led to another major switch, this time as a legal studies major at Post University, where she earned a bachelor of science degree. Intrigued with leadership methods, she began studies towards a master’s degree in leadership. That’s currently on hold. “I am studying to become a certified fraud examiner.” Through all the changes, she never lost focus on her mission to serve Indian Country. After high school, almost every job she took related to tribal casinos, either on the gaming side or the regulatory side, where she now serves as St. Paul Region director at the NIGC, which oversees 38 tribes and 100 gaming operations in six states. “I am passionate about gaming. I had opportunities to develop training, write standards and protect assets. To know I assist in ensuring the tribes are the main beneficiaries of revenues made by their casinos adds to my job satisfaction,” says Castellano, who credits her parents for teaching her to work hard and do the best job whatever your position. Growing up poor, Castellano saw her life change after her parents earned good-paying jobs at a tribal casino. “I experienced the benefit that came from Indian gaming, which probably is one reason I am passionate about protecting the integrity of Indian gaming,” she says. For Castellano, the biggest challenge has been personal. “I was never afraid to move or take a chance, or afraid I wouldn’t succeed. The only option was to succeed. I only looked forward and took every challenge like it was part of life.” Though in a position of authority, Castellano has had to deal with how others perceive her. “Sometimes being the youngest person in the office, a woman with an outgoing personality, left me to ‘prove’ myself before really being heard by co-workers. I remember presenting at a conference and a man came up to me and said, ‘Wow, you really do know what you are talking about. By looking at you I would have never guessed,’” says Castellano, whose loud laughs help relax her. Castellano worked for a few female bosses who allowed her to learn, teach and find her own job satisfaction. “As long as I got the job done, they would let me take on as many other tasks as I wanted. My current bosses at the NIGC provide advice, encourage and support me, and listen,” she says. Her advice to those thinking of a career in the casino industry is to build a network of passionate, supportive people, keep in contact and ask them questions. “Choose how you spend your day, and have meaningful interactions,” Castellano says. “The projects you work on and the results you produce are a reflection of you. Focus on developing yourself, not comparing yourself to someone else’s vision of success.” —Bill Sokolic

Global Gaming Business NOVEMBER 2019

Executive Director, Snoqualmie Gaming Commission ome may view gaming regulations as fixed structures, unchanging as stone. Daniel Hanson, executive director of the Snoqualmie Gaming Commission in Washington state, sees it quite differently. “In today’s environment, regulators have to be as dynamic as the businesses we regulate,” he says. “We have to be ahead of the technology curve. We have to understand all the new game offerings. People think of regulation as being very inflexible and static. Far from it.” As executive director of the Snoqualmie Gaming Commission, the Olympia, Washington native oversees a team in charge of auditing, licensing, compliance, budgeting, risk management and other critical functions related to operations at the Snoqualmie Casino, owned and operated by the tribe of the same name. At just 33 years of age, Hanson is already an industry veteran. But sometimes he’s surprised to have landed in gaming at all. At the University of Washington, he concentrated on business, with an eye to being a CPA. His first job out of school was in the Seattle office of global firm Protiviti, doing internal audit consulting. “It was a great first step,” Hanson says, “but I realized something was missing for me; I didn’t see where my contribution was driving value.” When he learned that a Kingston tribe needed an internal auditor, he thought, “What a good opportunity to do something different.” Eventually he was tapped to become executive director of the Port Gamble S’Klallam Tribe Tribal Gaming Association, where he got “lessons in leadership and an understanding of how to manage teams effectively.” At Snoqualmie, Hanson enjoys a close collaboration with tribal leaders. “Obviously, we are independent as regulators, but with a valueadded approach, you partner with the casino to make sure they’re hitting their compliance goals and doing it in the most effective and optimal way for the business. I work really closely with the executives on the operations side.” Hanson credits wife Jacqueline and sons Caton and Camden for their continuous love and support, and thanks his parents for setting a high bar of achievement. “They taught me very early on never to settle for average,” he says. “Every day, I approach my career with purpose and passion.” What’s his advice for those aspiring to a similar track? “On this path, you see people come from a lot of disciplines—finance, law enforcement, slots, table games. Don’t limit yourself to one discipline or one area, because at the end of the day we regulate the whole facility. We have to know a fair amount about every department and the needs of each group within the organization. “So reach out,” says Hanson. “Network. Read. Immerse yourself in the whole industry.” —Marjorie Preston

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2019 Emerging Leaders

40 UNDER 40 Deep Background Dan Farnon

Soaking It Up Amy Castro

Director of Strategic Accounts, IGT

Gaming Operations Analyst, Ocean Downs Casino

e can do it all. Dan Farnon, IGT’s director of strategic accounts, thrives at the heart of the gaming-industry table. Conferring with CEOs of major properties and his own staff, Farnon blends the insight from both worlds into subsequent product rollouts. A hot issue for him this year concerns sports-betting revenue amid increased legalized operations. Rarely does the industry view potential new revenue that does not detract from another sector. “What’s fascinating for me is watching the major decision-makers, how they perform, what is behind the scenes, what they think about and how they view market trends,” Farnon says. “It is a unique perspective about what companies feel they are doing well and where they think they can improve, coming from senior leaders. “Normally, sales people get to understand only one market area. Here, you see the perspective of the whole country.” Farnon, 32, also has a worldly perspective. He joined IGT in 2011, based in London, and was responsible for building a financial modeling and analysis function for the EMEA team. He has progressed in roles in finance, sales operations, business development, and with IGT’s commercial teams. He led the initiative to build out IGT’s financial analysis team in EMEA as well as the inside sales organization in North America. Farnon has worked with all IGT’s gaming markets including Europe, Africa, Latin America, North America and Asia. Farnon’s well-rounded portfolio includes a stint as a Lloyds of London underwriter. Experience with the famed insurance company sharpened his analytical and forecasting skills. Farnon has another vision beyond gaming. Having completed his MBA from the University of Chicago, he founded a startup called Paire Health. His access to rising health care professionals in the MBA circuit gave him easy access to top-flight medical insight. Farnon extended the concept to Paire Health, which provides a network of doctors offering second opinions on significant medical issues. Farnon says there is a strong chance that people in developing countries can be misdiagnosed on major issues. “Unfortunately, some of my family members in the U.K. passed away in part because of limited access to high-quality care,” he recalls. “I began to wonder if there was a free-market way to help.” Farnon led Paire Health to win the 2019 Polsky Centre’s GNVC competition, a top award for a business created by MBA graduates. Farnon cites the importance of mentors and the courage to leave the safety net. “My proudest achievement was the ability to come here to the United States, with no family, friends or knowledge of who I would work for,” he says. “You have to fit in quickly with a new culture and new friends, and build a career again. I had to start from scratch in the United States. And it was the best decision I ever made.” That led to one more. Farnon and his fiancée, Kori Ow, will be married in 2020, and they plan to reside in the United States. — Dave Bontempo

ike so many others, Amy Castro stumbled into the gaming industry. She majored in marketing at Salisbury University with an idea she might go into web design. When Ocean Downs Casino opened up in Berlin, Maryland, Castro’s experience in food and beverage landed her a shift manager position. Once she got a taste of the industry, she was hooked, says the Annapolis native. “I wanted to learn as much as possible, and transferred into marketing when I had the opportunity. I took on slot analysis duties, and that was where I really found a passion for gaming.” As gaming operations analyst, Castro bears responsibility for performance reports for slots and table games. “In addition, I head up projects for conversions, installs, moves and other floor changes, and submit the setups to the state for approval.” Castro has no illusions that gaming remains a male-dominated industry. “But it is very encouraging to see more women stepping into and moving up in the gaming industry. Being a woman in this industry is becoming less of an obstacle and more of a door-opening opportunity,” she says. Duncan McConnell inspired Castro since Churchill Downs acquired Ocean Downs. Senior director of slot strategy and performance at Churchill Downs, McConnell recognized her talents. “He challenges me on a regular basis to fan the flames of my passion,” says Castro. “Also, Blake Lyon, the director of gaming at Ocean Downs, encourages me to learn as much as possible about gaming and continues to teach me something new every day.” And of course, there’s Mom and Dad. “They’ve always supported me and encouraged me to go after my dreams,” Castro says. While the main target market of slots remains older generations, it is positive to see younger generations sparking an interest in gaming, Castro says. Marketing teams have to be more creative these days to appeal to them. “The generation brought up on video games seems to be attracted to skillbased gaming, which is an exciting newer concept because it just adds to the ever-evolving world of slots.” Castro hopes to continue on the slot side of the industry. “I also know that my experiences in multiple departments across a casino will open doors to a bright future in gaming. I would like to be a role model for other women entering this industry,” she says. For those on the way up—whether male or female—Castro says it’s important to learn how to balance work with the important things that matter in life. “I truly enjoy going into work each day to see what challenge I get to take on, but I equally enjoy coming home to my family and enjoying life’s adventures.” Castro and her family are very close, she says, citing her two young children, Danny, 7 and Brooke, 5. “I also have a younger sister who I consider one of my closest friends. We all enjoy traveling together, playing games—and there are always plenty of laughs when we get together.” — Bill Sokolic

Global Gaming Business NOVEMBER 2019

TO THE WORLD, SHE’S IN THE TOP 40. TO US, SHE’S #1. Konami Gaming, Inc. is pleased to congratulate Director of Business Development, Danielle Rankin, as one of this year’s Emerging Leaders of Gaming 40 Under 40. Her talent and technical trailblazing helps bring our SYNKROS® customers the leading-edge innovation that puts their floors at the top.

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2019 Emerging Leaders

40 UNDER 40 Location, Location, Location Lindsay Slader Vice President, Regulatory Affairs, GeoComply indsay Slader was always obsessed with maps. Family members and friends deferred to her sense of geography in staking out vacation activities. The 34-year-old Vancouver native loves travel and knows more about United States capitals than most Americans. How fitting for her to find GeoComply, become its vice president of regulatory affairs and help gaming regulators, operators and licensees navigate the Wire Act. Compliance status gains enormous significance with more states obtaining sports-betting legalization. “This is an exciting time for the gaming industry, with sports betting in the age of the post-PASPA repeal spreading like wildfire,” Slader says. “It is wonderful to be involved in that evolution. Educating all stakeholders in the online gaming betting world, and showing how geolocation technology influences their markets, is going to be continually important. “Given that there are still many states ready to introduce sports betting, my work will be providing education and expertise on how geolocation technology will impact their introduction of it. I testify at state hearings telling a particular state how geolocation technology works for them, giving them a demo.” Her testimonies have been eye-opening presentations. They address elected officials, often at the request of a lawmaker, operator or regulator who knows geolocation’s role to ensure legal betting takes place. Stakeholders want to evaluate the viability of sports betting, potential revenue and regulatory framework. GeoComply is an approved vendor in New Jersey, Nevada, Delaware, Mississippi, West Virginia, Oregon, Rhode Island, Georgia, New Hampshire, Virginia, Michigan, North Carolina, North Dakota, Pennsylvania, Iowa and Indiana. The border of New York and New Jersey provides an illuminating snapshot of Slader’s role in the emerging sports-betting world. New York legislators asked her to demonstrate the workings of geolocation last spring. You could have seen a pin drop. One at a time. Slader unfurled a pin-drop map, illustrating the second-by-second attempted wagers being made from New York, where online betting is not legal, to New Jersey, where it is. GeoComply technology was blocking the attempted wagers. Legislators were surprised to discover how many players near the border were wagering. Translation: This is available future revenue for our state. “When GeoComply’s live ‘pin-drop map’ of New Jersey is demo’d to a legislature, that picture is worth a thousand words,” Slader says. “For the live map of New Jersey sports betting traffic, the mass volumes hugging the New York borders are as clear as day for anyone watching. “When I go to a hearing, I typically provide a non-technical ‘Geo 101’ crash course to start, and relish the moment when I can flip to the live map; lawmakers open their mouths with an ‘Ahh!’ and you see it all come together in their minds right in front of you. I consider this quite an accomplishment—explaining tech to elected officials is no easy feat!” Slader says the technology extends to other uses, including help for law enforcement to pinpoint the location of someone who attempts a financial crime. The next growth period figures to be prosperous for Slader, who loves maps so much that she’s prepared an Atlas for the gaming world. —Dave Bontempo

Global Gaming Business NOVEMBER 2019

Birthday Present Steven Brody Digital Compliance Manager, William Hill US ome connections are magical. Steven Brody has one more reason than most to remember the PASPA repeal enabling widespread legalized sports betting last year. It happened on his birthday. “It’s been a neat little trick I’ve had,” the digital compliance manager for William Hill US says with a grin. “I always remember the date PASPA was repealed, May 14, and some people think it’s amazing, like ‘How do you know the so much about this, even the date?’ It’s also the day the Supreme Court gave me a job.” Well, this one, anyway. The effervescent 36-year-old Secaucus, New Jersey, native made several productive stops before this position beckoned last year. He had his LL.M. in gaming law and regulation from the William S. Boyd School of Law at the University of Nevada, Las Vegas, and his J.D. from Rutgers University School of Law. Brody also earned his bachelor’s degree in accountancy from The College of New Jersey. He is licensed to practice law in New Jersey and Pennsylvania. Brody also invented a patent-pending casino table game at the UNLV Center for Gaming Innovation. Before the William Hill era, he was a consultant for the New Jersey State Police and worked in the Meadowlands in a homeland-security, commandcenter role during the Super Bowl. Brody has worked for organizations that helped towns rebuild after Hurricane Sandy, and established a professional relationship with William Hill personnel prior to PASPA’s repeal. The court decision turned his life in a new direction. Online gaming’s rapid growth, coupled with the opened floodgates of sports wagering, made compliance a key position. Brody provides regulatory oversight for daily operations and represents the company to state regulators throughout the testing process of new digital products. “The job has three major areas,” he says. “One is making sure promos and specials are within state regulations and clearly outlined to players. The second regards anything to do with our platform. As you can imagine, if there is any problem with functionality it’s all-hands-on-deck to get it up and running. I am the face of William Hill to the regulators. “The third area is expansion,” he adds, regarding nuances and complexities across different states in a rapidly expanding market sector. “Through every metric you can think of, from the head counts of employees to the number of players online, the wagering opportunities we are offering—it is absolutely through the roof,” he says. “The energy and the teamwork that comes with that has been fantastic.” Brody loves the buzz of bettors engaged in the operation he oversees and is honored to join the Emerging Leaders group. “I hope what this indicates is my passion for the industry and potential in the industry,” he says. And at least on one day every year, when he blows out the candles, Brody will have a gaming milestone to celebrate. —Dave Bontempo

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2019 Emerging Leaders

40 UNDER 40 Running Strong Dan Cherry Corporate Vice President of Gaming Operations, Penn National Gaming ext April, Dan Cherry is going to run downhill in Las Vegas. That isn’t a misprint. Cherry plans to compete in the Mt. Charleston Marathon, also not a misprint. “It’s downhill with a 6,000-foot elevation drop, ending in northwest Las Vegas,” says Cherry, corporate vice president of gaming operations for Penn National Gaming. For Cherry, the contradiction of a mountain marathon in a desert is just one of the quirks about the Baton Rouge native, whose goal is to run 50 marathons in 50 states. “I’ll be at 10 by early next year, so I’m off to a good start.” Cherry got into the casino industry almost by accident. He studied finance at Washington University in St. Louis then worked in retail. “That wasn’t for me at all,” he says. “I came across a posting for a planning and analysis position at the local Ameristar Casino in St. Charles, Missouri. I thought it sounded fun and applied on a whim.” He got the job, and at the time considered it just the next job on the resume. A few years later, it turned into a career. In Cherry’s current position, he aligns Penn National’s overall gaming strategy—slots, tables and poker—to ensure operations at all locations reflect a one-company philosophy. “We have the largest slot machine footprint in North America,” he says, “and I manage a great team that works closely with property gaming leaders to make sure the best product is in the right places, at the best price.” Another priority is gaming analytics and technology for slots and table games. The industry has not done a good job leveraging the wealth of data out in gaming operations, Cherry says. “Coupling that with amazing innovations in table games and slot hardware, there’s just so much opportunity to deliver an incredible, personalized gaming experience,” he says. When it comes to roadblocks, Cherry says he’s had none. He credits the two organizations he’s worked for: Ameristar Casinos, and now Penn National. “In both companies I found great cultures

People Person and sets of core values, and also leaders who were willing to take a chance on people who lacked experience but worked hard.” A lack of obstacles doesn’t negate mentors. On the contrary. “I’ve been fortunate because I haven’t had a single boss in this industry who wasn’t a great mentor for me in some way.” Todd Greenberg and Bob Sobczyk at Ameristar gave him his start in gaming and taught Cherry about slots and table games. Sherri Summers, Cherry’s GM at Cactus Pete’s in Jackpot, Nevada, and George Stadler, GM at Ameristar Vicksburg, helped him make the transition to operations. “Both drilled into me the importance of making employees and guests the top priorities in this business at all times,” he says. The best is yet to come for Cherry. “This is great time to be a part of the industry,” he says. “There are so many changes going on for all of us, with the growth of online gaming, developments in game design, and all kinds of new technologies coming to market to improve operating efficiencies and the gaming experience. I just want to keep learning and growing with it.” He has some sage advice for those coming up in the industry. “The thing I see over and over is, it’s an industry that rewards talented people who are willing to put in the work, treat people well and are passionate about learning and evolving in how they view the business,” Cherry says. “For people starting out their careers, there’s a ton of opportunity, but it’s not always an obvious career path.” —Bill Sokolic

Global Gaming Business NOVEMBER 2019

Kelly Sullivan Director of Global HR & Development, Mohegan Gaming & Entertainment elly Sullivan has always had a passion for helping people. She obtained her bachelor’s degree while simultaneously working as an intern for the Mohegan Tribe, where she was able to experience the myriad aspects of its various business units. When Sullivan decided to continue her formal education and pursue a master’s degree, she had proven to be such an asset that the head of the Career and Leadership Development Department, where Sullivan was interning, asked that she stay on with the team while she earned her advanced degree. At Sacred Heart University, Sullivan started with the desire to be a marriage and family therapist. Within that first year, her experiences—and successes—working within her role led her to transition to a concentration in industrial and organizational psychology and community counseling. Within three years, Sullivan advanced from administrator to director, working to provide meaningful employment and career advancement for tribal members. Sullivan then decided to round out her formal education with a certification in financial management from Cornell University. In her current role as director of global HR and development for Mohegan Gaming & Entertainment, Sullivan is instrumental in the development efforts of MGE and its affiliates worldwide. She holds a leading role in advising executive leadership on plans to achieve standardization in human capital, guest service and operational strategic priorities both domestically and globally and assists with the execution and opening of all

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properties. Sullivan is very proud to be a member of the Mohegan Tribe, which is an extremely important part of who she is, and she strives to be recognized for her dedication and hard work. To that end, Sullivan views her success as a result of that effort and good timing. According to those she has worked with, it can also be attributed to her confident, yet humble nature. Pat LaPierre, a newly elected member of the Mohegan Tribal Council, has been a mentor to Sullivan since her days as an intern. “Kelly’s been so successful at such an early age because she has a great personality, is curious, intelligent, mature beyond her years, and is fearless,” LaPierre observes. “She is never afraid to take on something she knows nothing about.” Earlier this year, Sullivan was offered the opportunity to relocate to Seoul, Korea, to assist with the development of Mohegan’s Inspire Entertainment Resort, opening in 2022. While on assignment, Sullivan is working with business leaders to implement the gaming and operations business strategies, align the organizational culture, negotiate and manage strategic partnership business terms and interface with government agen-

cies on key issues. “It was not so much what we saw in Kelly that made us want to invest in her as a future leader, as much as it was what she did and continues to do to make herself essential and indispensable to our success,” says Mario Kontomerkos, chief executive officer of Mohegan Gaming & Entertainment. “It is her always positive attitude that consistently generates positive outcomes, which has led and will continue to lead to her continued success.” When asked for her advice to future emerging leaders, Sullivan recommends never saying no to an opportunity. While you may not like or want that opportunity, she feels you learn the most from what you dislike doing. It’s OK to admit you don’t know—just work to learn and educate yourself. Finally, she embodies her belief to always be kind, and advocates that you do not have to “have the title” to be a leader. As for the future? Sullivan has proven that she is wide open to whatever door is the next to open in her path. Her only challenge may be choosing from the many doors that will definitely be opening for her. —Allison McCoy, Vice President of Business Development, The Innovation Group

SAVE THE DATE Annual North American Regulators Roundtable DATE:

MARCH 4-5 2020

LOCATION:

TROPICANA CASINO & HOTEL LAS VEGAS, NEVADA

URL:

GAMINGLABS.COM/GLIRT20 #GLIRT20

Learn Tomorrow Today

H C T CA

TH E

N O I S I

02 2 N

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2019 Emerging Leaders

40 UNDER 40 In With the New Diana Szorc Digital Marketing Manager, Rush Street Gaming ow to describe career woman Diana Szorc in one word? Maverick. Szorc has made a career out of forsaking old traditions for new trends in the gaming industry, all without so much as flinching. Her colleagues describe her as “poised and professional, with a fresh outlook,” citing moments when she presented bold ideas to rooms full of industry veterans with the confidence of a seasoned pro. With a talent for effectively communicating with executives of all ages, experiences and backgrounds, Szorc is more than deserving of the high level of respect that she has earned from her business associates throughout the industry. While acquiring her bachelor of business administration in marketing at Loyola University Chicago’s Quinlan School of Business, Szorc’s gaming industry career began in 2014 when Rush Street Gaming hired her to be a summer intern. The renowned conglomerate named after Chicago’s iconic north-south roadway, Rush Street, was known for running everything from casinos, restaurants and hotels to internet gaming and television production, with business units universally themed with destination-based gaming, recreation and entertainment. Szorc’s first order of business was the daunting task of assessing the casino’s social media presence and convincing senior-level executives to jump on the social media train. But her persistence paid off, and after her educating and encouraging her peers, Rush Street Gaming crossed over to the powerful marketing tool that is social media, and continues to reap the benefits across all of its properties nationwide. Szorc achieved her ongoing growth by building relationships with Rush Street executives and attending educational seminars and conferences that helped her to stay ahead on trends in the industry. Finding creative ways to acquire her own resources gained her company-wide attention, at which point she was assigned as project lead on several vast corporate initiatives. Now as a digital marketing manager for Rush Street Gaming, Szorc continues to challenge the status quo of the gaming industry by seeking marketing tactics that appeal to the generation of gamers currently emerging. “Our industry is long overdue for a wakeup call,” says Szorc. “Conventional strategies will no longer work with this up-and-coming demographic, and we have to be open to new technologies, new methods, and new ideas.” With her propensity for taking action, it’s no shock that Szorc sits on several ambitious boards, including Board39, Northwestern Hospital’s oncology advisory board of cancer survivors who aid the hospital’s adolescent and young adult program through their own experiences, and the Loyola University Chicago Alumni Board. And in her spare time when she’s out running the Chicago Lakefront Trail, you can bet she’s thinking up ideas on how to move the industry toward the next evolution of the gaming experience. —Marie Casias, Manager of Marketing and Administration, The Innovation Group

Global Gaming Business NOVEMBER 2019

Engineered for Advancement Samantha Powell General Manager, GLI Australia n the not-so-distant past, women entering the technology sector needed an extra measure of stick-to-it-iveness— along with a glass-cutter—to bust through gender-based preconceptions. According to Samantha Powell, Gaming Laboratories International (GLI) Australia not only welcomed a green college grad with no experience, but pointed her toward open doors and then pushed her through. Powell started in 2001 as a testing engineer, then served in increasingly responsible roles in quality control, regulatory compliance, licensing, certifications, accreditation and more. In her most recent position, as senior manager of engineering, “I had pretty much full responsibility for our APAC region, Australia and Macau, with a focus on engineering and managing thee quality assurance team,” says Powell, who recently was elevated to general manager of the engineering department. “The new role I’m taking on will be more of the business side.” At college, the Adelaide native studied physics and computer science, but “had no idea” what she would do thereafter. For a time, she worked in the pokie room of a local pub, making change and refilling drinks, but says “the customers knew more about slot machines than I did.” Then she learned GLI was actively courting university graduates. She applied, was hired, and has been on the ascent ever since. Her bosses “always opened up new career paths for me,” Powell says, even when she didn’t fully welcome them. “Although I was passionate about getting ahead and being given more opportunities, at times it was a bit scary. But I always gave it a go. I’ve been really lucky, and I’m blown away to be given this new position.” The working mother of a 10-year-old daughter (Jaime) welcomes support from all corners: at home, husband Matthew, her parents and in-laws all pitch in. “It’s not too much pressure, it’s just enough,” she says with a laugh. “It’s chaotic sometimes, and I’m on the go all the time. But I do enjoy that. I perform well under pressure. Otherwise, I think I’d be bored.” She thanks Ian Hughes, now GLI’s vice president of global services, for guiding her in her career. “When I started, he was in the role I’m in now, and he taught me so much, especially about decisionmaking.” Asked what traits have been essential in her professional success and advancement, Powell replies without hesitation: “The people connection. I believe I’m an empathetic person with customers and employees. I think my team feels really supported. I get good satisfaction out of helping someone with a problem. And when presented with a challenge, I’ve always tried to find a solution that benefits everyone.” —Marjorie Preston

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The Great Northwest Healthy Washington state gaming market has operators seeking to add capacity By Dave Berns

as Vegas-based Maverick Gaming announced last month that it had closed on the purchase of another five card rooms in Washington state, giving the company a total of 19 card rooms and nearly 290 table games in the state. The company also plans to add rooms in the suburban Seattle communities of Everett and SeaTac, as well as in the Tri-Cities region in Eastern Washington. “To me it’s a fantastic, vibrant market with a huge Asian base,” says Maverick Gaming owner Eric Persson, noting that 4.4 million people live in the Seattle area, or almost double the number of people who live in Las Vegas, Henderson and North Las Vegas. Persson, a Georgetown University Law School graduate who worked in Las Vegas for Michael Gaughan and commuted between Las Vegas and Washington, D.C. while earning his law degree, spoke of the similarities between the two gaming markets. “Just like Las Vegas, there’s a customer base that would prefer to be closer to the (gambling) facilities and know our employees. That’s what the card rooms are,” says Persson, whose Maverick brand owns and operates 1,300 hotel rooms in Northern Nevada.

Global Gaming Business NOVEMBER 2019

Gaming Mix The state of Washington possesses one of the more intriguing gaming markets in the country, with offerings that include destination resorts, roadside stops and card rooms. The mix is reflective of Washington state’s vibrant tech economy, driven by such well-known brands as Microsoft and Amazon, and the region’s appeal to a wide range of people. The state has a population of 7.2 million people with a median age of 37.7 and median household income of $67,106, according to 2016 statistics provided by the state of Washington. The state’s population is 69.3 percent white, 12.4 percent Hispanic and 8.11 percent Asian. Median property value in Washington is $306,400 and the home ownership rate is 62.5 percent, with an average commute time of 26.2 minutes. “In California, most casinos seem to be larger facilities,” says Joe Weinert, of the Atlantic City-based gaming market research firm Spectrum Gaming Group. “In Washington state we see a wider variety. Some are quite small. They might have a small deli with beverage service, and others are comparable to Las Vegas casinos in terms of their quality and the score of their offerings, not the size of the hotels. These are first-class casinos.” Washington has 34 tribal casinos and 56 card rooms, according to the

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“We’re in our infancy. It’s important that we understood the business, the trending, the economy around us.” —Kara Fox-LaRose, President and General Manager, Ilani Casino Resort

Ilani features a Michael Jordan Steakhouse and 100,000-square-foot casino floor

American Gaming Association’s 2018 Survey of the Commercial Casino Industry. The gambling participation rate for Washington adults is significantly higher than the U.S. average, according to the 2016 Spectrum Gaming report. Nationally, 32.5 percent of adults spent about $950 annually at casinos. Spectrum estimated three years ago that if Washington gaming customers maintained that national average, total gross gaming revenue at the state’s Indian casinos would be $1.61 billion. Instead, that figure totaled $2.67 billion in 2016. In 2017, Washington tribes directly employed more than 30,715 Washington residents, ranking higher than such big brand retailers in the state as Safeway, Albertson’s and Walmart, according to a study released earlier this year by the Washington Indian Gaming Association. That same year, tribal governments paid more than $1.5 billion in employee compensation. “The casinos there are on a par with casinos in any other state,” Spectrum’s Weinert says, “ranging from beautiful destination resorts to smaller slot parlors and card rooms for the drive-in market.”

Tribal Destinations The $510 million Ilani Casino Resort is a popular destination in southwest Washington, about 25 miles north of downtown Portland and 150 miles south of Seattle, along Interstate 5. The 100,000-square-foot casino floor opened two years ago on 156 acres of the Cowlitz Indian reservation and is managed in a partnership with the Mohegan Tribal Gaming Authority. The gaming project received a great deal of pushback when it was first announced more than a decade ago, and was viewed as posing a direct financial challenge to the Oregon Lottery’s video poker revenues and multiple tribal casinos across the Columbia River in Oregon. Plans to build the casino resort faced local opposition for a decade, including a lawsuit filed by Clark County, Washington; the city of Vancouver, Washington; card-room owners in nearby La Center, and groups of local residents and business owners, as well as the Confederated Tribes of the Grande Ronde, which operate the Spirit Mountain Casino, 60 miles southwest of Portland, and filed a lawsuit in opposition. Plaintiffs in that case finally dropped all legal action after the U.S. Supreme Court dismissed a final appeal three weeks beNOVEMBER 2019 www.ggbmagazine.com

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Maverick Gaming recently purchased the Macau Casino in Tukwila, making it the 19th card room the company owns in Washington

“To me it’s a fantastic, vibrant market with a huge Asian base.” —Maverick Gaming Owner Eric Persson

Washington had 31,916 gaming machines in its tribal casinos in 2017, according to the American Gaming Association. By comparison, neighboring Oregon had 19,129 and Idaho had 3,739.

fore Ilani opened. Today, the Ilani offers 2,500 slot machines and 75 card tables, plus baccarat, Pai Gow Poker, craps, and such well-known brands as the Michael Jordan Steakhouse and Marshall Rouso, about 20 miles north of Portland, Oregon, along Interstate 5. It took more than a decade for the tribe to receive federal recognition for the land to receive the necessary federal designation. Kara Fox-LaRose, president and general manager of Ilani, says the casino wants to build partnerships with hotels and local governments within the region. She speaks of the property serving as “an amenity” to the region, and she and her team are working to build strong political and business relationships throughout the community. “It’s very much a regional casino. Our focus is creating an amenity to the region to complement the region. It really is breathtaking,” FoxLaRose says. She is an executive with Mohegan Sun LLC, which operates the Pacific Northwest casino for the Cowlitz Tribe. The tribes began the partnership in 2004, when Mohegan’s Connecticut casino was the second largest in the world. The Ilani Casino opened in April 2017 with 100,000 square feet of gaming space, 15 restaurants, bars and retail outlets and a 2,500-seat meeting and entertainment venue. “We have a high focus on operational excellence, which speaks of quality emphasis for guests with dining and entertainment,” says FoxLaRose. “Business volumes continue to outpace our expectations. We have a strong Asian business. Richfield is the fastest growing city in Washington state since 2010. The Asian market is growing at three times the pace of the domestic market.” The bulk of the property’s Asian market is composed of domestic players who primarily play mini-baccarat, blackjack and slots. Fox-LaRose

Global Gaming Business NOVEMBER 2019

speaks of a healthy table market at the casino, which offers 75 table games.

Local Casinos The 2016 Spectrum report produced for state gaming regulators notes that nearly 85 percent of Washington’s adult population resides within a onehour drive of a Class III casino and adds that “this figure will increase to more than 90 percent in the coming years with the opening of two new casinos.” To this point, unlike many other states where casinos may be out of reach or inconvenient, the bulk of the adult population—99 percent— resides within a two-hour drive of a Washington Class III casino. “Our research demonstrates that a number of Washington regions are underserved by Class III casinos, meaning that adults have to drive more than an hour to visit the nearest casino,” according to Spectrum. The Washington Tourism Alliance, Visit Seattle and Visit Spokane include casino gaming in their marketing messaging. The Tourism Alliance lists gaming as one of its 10 major categories. Seven casinos partner with Visit Seattle, which is the official source of information for visiting the region. Tribal members and Ilani’s management team intend to expand the gaming property in the coming years. Washington had 31,916 gaming machines in its tribal casinos in 2017, according to the American Gaming Association. By comparison, neighboring Oregon had 19,129 and Idaho had 3,739. “We’re in our infancy. It’s important that we understood the business, the trending, the economy around us,” Fox-LaRose says. A 2,600-spot parking garage that could be expanded to 4,000 spots is currently under construction. “We’re stabilized and now we’re working to determine what other amenities make sense.”

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Keeping It

Reel

If you think reel-spinning slots have gone the way of the fruit machine, think again. Among some players, these old-style games are not just popular, but preferred. By Marjorie Preston

n the past 20 years, slot technologies have changed in ways that would have astounded the players of the past—and mystified them, too. Instead of cascades of coins, we have paper tickets. Instead of working handles, there are computerized machines where the handle (if there is one) is like a vestigial tail—good for something once, now a useless appendage. There’s something to be said for the reel thing—old-style reelspinning slot games—which have not only survived generations of technological “advancements,” but are still a vital part of the gaming floor. No wonder smart manufacturers are still cranking them out. For example, in a 2018 interview, Anthony Baerlocher, vice president of innovation and mechanical reels for IGT, pronounced himself “more bullish on the future of reel-style slots than I have ever been… As more and more suppliers enter the mechanical-reel space, the competition will intensify, a scenario that is ultimately positive for the industry as a whole.” At the same time, Greg Colella, then vice president of product marketing at Scientific Games (he is now with Konami), said, “Approximately 25 percent to 30 percent of our game library consists of mechanical-reel games, and we plan to continue to produce new titles in the future, showcased on mechanical-reel cabinets that incorporate our newest, most cutting-edge innovations.” IGT, meanwhile, replaced its workhorse S2000 reel-spinners a few years ago with the more modern S3000 platform, but more recently, added retro elements to the S3000 to give the machines a more traditional feel. IGT still uses the stepper format for many of its most pop36

Global Gaming Business NOVEMBER 2019

ular premium games, most notably the venerable Wheel of Fortune, which still typically features stalwarts like Double Diamond and Ten Times Pay as base games for the legendary progressive slot.

Everything Old Is New Again The slot machine as our ancestors knew it was built in the 1890s by Bavarian immigrant Charles Fey. An auto mechanic by trade, Fey designed the groundbreaking Liberty Bell model, with three reels, a coin slot, and a lever on the side that set the reels spinning. Reportedly first installed in a San Francisco saloon, the Lib-

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“There will always be a subset of players who are looking for simple traditional stepper products. This will never go away.” —Cathryn Lai, Vice President of Products and Strategy, Scientific Games

Scientific Games’ 88 Fortunes three-reel mechanical product, one of the company’s top-performing low-denom stepper products

erty Bell had just five symbols—a diamond, spade, heart, horseshoe and of course, a cracked bell— with a maximum payout of 50 cents, all spit out in nickels (not a bad return; at the time, four bits was equal to about $150). For decades, versions of the so-called “onearmed bandit” reigned on casino floors. At the end of the 1990s—about 100 years after Fey’s invention—along came video slots, with their high-definition graphics, sound, animation and all-around razzle-dazzle. Aristocrat’s groundbreaking multiline video slots were joined by competing models from WMS, which had jumpstarted its own business with the first U.S.-developed multi-line video slots, and IGT, which developed low-denomination, multi-line video games with themes drawn from popular music, movies and TV (think Wheel of Fortune, Hollywood Squares, and The Wizard of Oz). With all those newfangled machines in play, operators may have been ready to write off the old-fangled inventory. But for economic reasons, they didn’t clear the machines completely off the floor. That was a fortuitous thing. As it turns out, traditional reel-spinners have enduring appeal for whole groups of loyal players. When slot-makers realized the machines were still viable and profitable, they stepped up production and development—not just bigwigs like IGT and Scientific Games, but once-video-only giants like Aristocrat and suppliers including Aruze Gaming America and Everi. The retro trend was on.

Updating a Classic Dean Ehrlich, executive vice president and games business leader at Everi, says the popularity of traditional slots is due in part to an extremely loyal audience of longtime slot lovers. “They have specific preferences when it comes to three-reel mechanical slots: simple game play, familiar mechanics, and clear pay tables. These are all elements we’ve been focused on when developing new titles and mechanics.” 38

Global Gaming Business NOVEMBER 2019

He concedes such “classic” slots appeal to an older audience, but don’t be too quick to stereotype them as granny’s games; Cathryn Lai, vice president of products and strategy for Scientific Games, says they also appeal to “novice slot players who are looking for a simple betting interface.” Slot manufacturers have stayed true to traditional stepper models while retrofitting contemporary features like multiple pay lines, free games and bonus features, and tweaking the mechanical spinning model with more volatile penny program math. For Scientific Games’ 88 Fortunes three-reel mechanical product, one of the company’s top-performing lowdenom stepper products, “we took elements of the original 88 Fortunes video game, like the coin bowl feature and free spin bonus, and built them into our stepper game,” says Lai. In the past, Lai has said the top-level performance of 88 Fortunes is evidence games that combine the old and the new “are bringing in a hybrid player, and even video players who like multi-line games.” Everi has also tweaked the stepper formula, to notable success. According to Erlich, the company “has been intentional about enhancing our mechanical cabinet and associated hardware and creating more distinct, compelling titles” to better serve this market. “The introduction of more premium mechanical products with innovative mechanics with greater promotion and exposure also seems to resonate with a broader audience, not just your classic mechanical players.” Two of Everi’s latest titles, Diamond Lock Ruby and Diamond Lock Sapphire, are linked progressives that feature a unique lock-and-respin mechanic that Erlich believes could appeal to an even broader audience. One of Everi’s most recent mechanical titles, Cash Machine, “at its heart aligns with elements conventional mechanical players appreciate: win what you see (simple game

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“These slot games have been featured on casino floors since Day One, and we do not see them going away anytime soon.” —Dean Ehrlich, Executive Vice President and Games Business Leader, Everi

play), signature sounds, and an exciting math ride that offers an adrenaline rush,” Erlich continues. “We’ve also taken a number of our more popular high-denomination mechanical reel titles and made them available on our Core HDX video cabinet,” including classics like Black Diamond as well as more recent titles like Triple Jackpot Gems and Triple Wild Dragon, which may appeal to the less conventional mechanical player. “We recently reintroduced two of our popular and classic stepper titles and transformed them into a Grand Wheel presentation on our Skyline Revolve cabinet.” These proven themes leverage the cabinet’s 18-inch mechanical wheel and 23inch portrait monitor, he says.

Crossover Appeal

The company has brought back classic stepper products onto the latest Twinstar 3RM stepper platform: games like Quick Hit Double Jackpot Triple Blazing 7s and Quick Hit Double Jackpot Black & White are all “classic stepper brands that continue to resonate with players,” Lai says. “We also continue to have success with our Monopoly-branded games with the traditional spinning wheel top box.” One of the latest innovations is iReels, which overlays video on top of the reels to enable video-style bonuses on classic stepper slots. It is a modern version of the Transmissive Reels technology pioneered by legacy WMS Gaming. The trick is to keep what traditionalists want, try new things to attract new players, and create games with crossover appeal.

Keeping with Low-line three-reel stepper products Tradition are pretty easy to understand and Everi’s latest titles include linked progressives Diamond Lock Ruby and follow for a novice player, says Lai. Innovations like multiple pay lines, Diamond Lock Sapphire But once those players round the bonus wheels and 3D have certainly learning curve, they may “graduate” given a boost to the stepper genre, to other higher-velocity, feature-enbut that doesn’t mean the traditional hanced video slots. three-reel game is going to disappear. Bonus features such as free spins and “Over time, we’ve seen the ratio of steppers to video shift. There is a stacked symbols offer new experiences without changing the basic three-reel definitely a higher percentage of products dedicated to video platforms, model. because digital screens and large-scale displays have enabled endless posArguably, three-reel mechanicals have been overshadowed by innovation in sibilities to innovate on new game play and mechanics. the premium video space and by the sheer variety of video products, says “However,” she says, “there will always be a subset of players who are Everi’s Ehrlich. looking for simple traditional stepper products. This will never go away.” “These slot games have been featured on casino floors since Day One, and Scientific Games has renewed its legacy brands with video-like forwe do not see them going away anytime soon,” he says. “We believe these mats and features, whether it’s the progressive wheel bonuses of Michael games will continue to have a presence on floors particularly in tourist destinaJackson Legend and Cirque Kooza, on the Blade mechanical stepper, or tions and to a lesser degree local properties for a long time to come.” the multiple variations of the Bally Hot Shot series with its “mini-game” For the foreseeable future, those in the know see the traditional three-reel bonuses that recall classic Bally steppers. stepper slot sticking around. 40

Global Gaming Business NOVEMBER 2019

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ging Wallets

Bul

Payment processing takes the next step with technological advances By Dave Bontempo

allets sport enriched cache. Diversified and efficient, they aid gaming’s courtship with the electronic funds access world. The multibilliondollar industry awaits a seismic shift from cash in real wallets to funding from digital, online and even cryptocurrency wallets. Gaming officials cite reports indicating that only 12 percent of consumers, across many industries, prefer cash as their method of payment. While most businesses outside gaming have essentially gone cashless, casino patrons use a substantially higher number of cash transactions. But change is coming. Younger demographics, combined with the mobile-app-driven legalized sports-betting world, provide a long-term upside for payment systems and their new wallets, often contained on smartphones. It’s part of a larger, significant trend. Global payments are expected to reach $3 trillion annually by 2023 because people are switching from cash to digital payments. This redefines the very meaning of wallet. The term has migrated light years from its original purpose of a folded leather devices in one’s pocket. It contains credit cards, driver’s licenses, pictures and perhaps the most obsolete component in all of regular commerce, money. What about the modern “W” word? Digital wallets for electronic transactions, online wallets to enable purchases from retailers and even cryptocurrency wallets, still ahead of their time in standardized gaming, are being utilized in non-gaming amenities. Operators want to embrace and lead that trend. It’s a matter of time before the steady march toward cashless becomes a stampede. While vendors celebrate the speed of transactions and patrons relish the organized, compartmentalized information, gaming seeks new venues to capitalize upon them.

At The Forefront Joe Pappano, the senior vice president of U.S. gaming for financial giant Worldpay, laid the groundwork for this perfect storm in recent years. As an executive at Vantiv, he educated operators and financial institutions about enhanced safety in the electronic-transfer world. He enlightened them about encryption and chip technology, coaxing institutions to slowly relax their reservations about cash access on cards. It was significant that Pappano represented a company that seamlessly handled billions of transactions in other industries. Vantiv later bought Worldpay and the new company processes 40 billion transactions annually worth about $1.7 trillion, through more than 300 payment options in 120 different currencies. Earlier this year, Fidelity National Information Services (FIS) purchased Worldpay for about $35 billion. Amid that backdrop, Pappano has long viewed gaming as fertile ground for the cash-to-funds-access transition. “A majority of wallets today are used in an online environment,” Pappano says. “The difference between global markets and the U.S. gaming market is that the primary proliferation and growth has been in online gaming. Over time, with wallets and related accounts, we’ll see greater usage and prevalence in skill-based games, and we are just now rolling out with more widespread sports betting.

The 2018 repeal of the federal sports betting ban, which lifted the shackles off the betting world, brought wallets into a new, prosperous era. Officials could never have forecast the explosive growth of technology and online gaming, making each smartphone a hand-held sportsbook. Mobile accounts for 80 percent of the betting in New Jersey, dwarfing initial sports-wagering revenue projections.

Global Gaming Business NOVEMBER 2019

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“We ultimately want to create an omnichannel experience, which bridges together online gaming, sports betting and more. The best way to create that frictionless experience is an online wallet or online account.” —Joe Pappano, Senior Vice President, Worldpay

“Security-wise, many of the same features and controls—geolocation and age verification, for example—will be attached to the wallet experience,” he adds. “What we will see for wallets is a unique identifier—like biometrics or facial recognition—as additional safety recognitions for funding and utilization.” As security concerns abate, operators observe the transformative effect of the wallet world. “The industry is looking at how wallets will be utilized, and there has certainly been a focus on the build-out of them,” Pappano indicates. “We ultimately want to create an omnichannel experience, which bridges together online gaming, sports betting and more. The best way to create that frictionless experience is an online wallet or online account. “Some companies are looking at a single, proprietary account for a single operator, while others are looking at a Switzerland-like approach, which may be used by any operator,” he adds. “What’s helping drive the momentum is the American Gaming Association’s Payments Modernization initiative, dedicated to creating a cashless and integrated casino resort experience.” All the innovations forge a prospering market. Projections indicate nearly 1 billion people will make a smartphone payment in 2019. Analysts used to talk about wallets being on tablets and home computers. The phone usage of the wallet compared to those devices has recently skyrocketed, giving casino wallets more clout. “The smartphone will absolutely be the driver, and apps, across all mediums, are important,” Pappano asserts. “The wallet is embedded in a mobile application stemming from an operator. Within that app, there is ideally an ability to fund the wallet or use it as a form to move monies in and out of a wagering account and/or to an electronic gaming device.” The 2018 repeal of the federal sports betting ban, which lifted the shackles off the betting world, brought wallets into a new, prosperous era. Legalized sports-betting proponents had forecast a brick-and-mortar paradise when they’d lobbied for it unsuccessfully over several decades. Their revenue projections were in the millions. When legalization occurred, they had the under. Officials could never have forecast the explosive growth of technology and online gaming, making each smartphone a hand-held sportsbook.

Mobile accounts for 80 percent of the betting in New Jersey, dwarfing initial sports-wagering revenue projections. “It’s massive,” Pappano says with excitement. “If you think about it, there are apps already being utilized in sports betting and the landscape is only growing. We have 13 states that are live, and we have another 20 states in the queue. That’s 30-plus states that are live or have passed/pending legislation surrounding sports betting. That’s the linchpin that ties back to the sportsbook, state lottery and/or racetrack in many cases. “For the states that have passed legislation, the mobile app and that form of an account/wallet is critical to move monies in and out and get folks back into the retail establishment.”

Digital Dynamite Everi, an industry force in the financial technology, games and intelligence sectors, relishes the wallet movement. “We have seen over the past 18 months an imperative for a digital transformation across the casino,” says Darren Simmons, executive vice president and fintech business leader at Everi. “The digital wallet is a key piece of this transformation, which is being driven by demand for self-service options from patrons, the convenience of accessing and managing funds via a smartphone, and consumer adoption that is already occurring

Everi’s interactive wallet consolidates payment options for guests, allowing them to store multiple payment methods, easily move funds in and out of the casino, and manage their spend limits in the context of responsible gaming. NOVEMBER 2019 www.ggbmagazine.com

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IGT signaled the importance of Resort Wallet at NIGA 2019 and continues to roll with its innovative mobile solution, used in conjunction with Cardless Connect to slice through lines in restaurants, reward centers and the gaming area. Both products are part of the IGT Advantage system.

in the retail space with the likes of Apple Wallet. In gaming, we see the pivot to cashless as having both revolutionary and evolutionary components.” The digital wallet remains a nascent technology with only a few implementations, Simmons asserts, but the company believes serious penetration will occur within two to five years. Regulatory approval and operators’ ability to invest in new technology in order to introduce a digital wallet are two of the big obstacles. Everi applied a gambler’s hunch several years back, devoting resources to where it expected a trend. “The digital wallet for the casino space is a technology that we began exploring more than three years ago and continues to be a significant focus moving ahead, particularly in terms of research and development effort,” Simmons indicates. “Today, Everi is involved in programs of our CashClub Wallet at two large properties where we are tailoring our solution to these operators. They each have different operating goals and objectives.” Simmons says Everi’s digital wallet shows operators how they can help their guests seamlessly move financial value across the gaming ecosystem. “We believe we will continue to see more operators adopt the technology, but it will require longer implementation cycles since it impacts the entire organization,” he maintains. Everi has been excited about CashClubWallet, a fairly dramatic shift for operators in terms of enabling patrons to access cash. The interactive wallet consolidates payment options for guests, allowing them to store multiple payment methods, easily move funds in and out of the casino, and manage their spend limits in the context of responsible gaming. “The digital wallet integrated into our Everi Compliance AML platform is also supported by more than 30 money-transmitter state licenses, which is a tremendous asset for Everi,” he says. “It gives us the ability to hold funds on account for payments and does not require guests to sign up for a prepaid card.” This is an FDIC-insured account Everi holds through its money-transmitter licenses. Its fintech business is also connected to more than 840 casinos across the U.S. and Canada, which have been vetted and verified by both gaming and financial regulators. “We are aiming to transform the guest experience through delivering an 44

Global Gaming Business NOVEMBER 2019

increasingly immersive entertainment experience that is free from the disruptive mechanisms of conventional payments, compliance, and loyalty, all enabled by this ‘digital neighborhood,’” Simmons indicates. “The addition of a loyalty marketing platform to our solutions set has enabled us to put forward yet another touch point for casino guests while helping operators maximize funds to their floors efficiently and responsibly. “This loyalty platform will serve as the activity hub for all product touch points—games, financial technology solutions, and interactive. More specifically, we are exploring even more ways to integrate CashClub Wallet into this ‘digital neighborhood’ of solutions for operators.” Designed to optimize security, functionality and efficiency of casino operations, the community of products is built on platforms enabling coordination across product lines, according to Simmons. This hub will help coordinate guest interactions across the full life cycle of their visit—from the time they step onto the property, enroll in a loyalty program, and access funding through game play and cash-out interactions—resulting in a seamless, premium guest experience.

Expanding the Playing Field Regardless of the sector, industry giants IGT and Scientific Games will leverage their resources to become significant players. That’s also true here. IGT, renowned in the slot-machine production realm, also casts a shadow in the sectors that interact with that. IGT signaled the importance of Resort Wallet at NIGA 2019 and continues to roll with its innovative mobile solution, used in conjunction with Cardless Connect to slice through lines in restaurants, reward centers and the gaming area. Both products are part of the IGT Advantage system. A slick video presentation outlined the practical application of a phone that becomes a wallet. “Wouldn’t you rather win than wait?” a voice inquires, demonstrating the vehicles by which “Bob Today” glides through the lines “Bob Yesterday” was stuck in. Today’s Bob purchased coffee, settled a bar tab, generated funds and activated play via his phone. He also cavorted between games and settled his accounts without entering a line. Resort Wallet supports cashless payments internally across the enter-

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prise and with other gaming apps, along with externally via third-party funding. The video illustrated why one would want to stay and play longer at a property. The product communicates with third-party gaming apps to share wallets. It also works with third-party funding sources to enable players to use credit or debit cards to fund play in jurisdictions that allow it. Simple, secure payments can increase coin-in while staying compliant to local regulations. Industry powerhouse Scientific Games addressed this market niche with Unified Wallet, unfurled to a couple of properties early in the year. The product will be tested, evaluated, tweaked and perhaps eventually rolled out to the mass market by the end of 2019. It is a software solution available for properties, which can help them customize offers and drive brand loyalty. Ultimately, it can be used for a spectrum of activity including social gaming, electronic games, sports betting, lottery, table games and retail purchases. The Unified Wallet enables players to show the phone at a game site,

deduct money from the wallet and join the action. Company officials anticipate a surge in the cashless sector amid an array of outlets. They equate it to the TITO revolution dating back to 2000. If industry estimates of 25 percent ro 35 percent of casino patrons adopting cashless and cardless systems in the next year are accurate, this market niche will experience a windfall. Ted Keenan, the Scientific Games vice president of product management, systems, was one of the first to point out another operator benefit, the hidden psychology of casino wallets. Leftover money from real wallets will be blended and spent with other cash. Funds not used in a casino wallet will usually stay right there, ready to be re-deployed. Given the numerous gaming touch points, from restaurants, spas and shows to the brick-and-mortar gaming floor and online wagering platform, wallets have never bulged with so much money. Even if they arenâ&#x20AC;&#x2122;t leather.

NOVEMBER 2019 www.ggbmagazine.com

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High Tech = High Performance Winners of 18th Annual GGB Gaming & Technology Awards Announced By Patrick Roberts

aming’s most respected technology awards were announced last month, when the winners of the 18th Annual GGB Gaming & Technology Awards were revealed. The GGB Gaming & Technology Awards are the industry standard in the field, recognizing excellence in innovation and practical application in all gaming disciplines. More than 70 gaming products and services were entered into this important competition. “Once again, the nominations for the GGB Gaming & Technology Awards represented the best new products and services in the gaming industry,” says Roger Gros, publisher of Global Gaming Business magazine, which administers the awards program. “As technology advances at a rapid pace, it’s often difficult for casino executives to stay current. The judges for the GGB Gaming & Technology Awards are some of the most dedicated and respected executives in the business, so their opinion carries a great deal of weight. The winners of this year’s edition beat out some amazing competition and demonstrated true innovation.” The awards were presented to the winners at the Global Gaming Expo last month at the Sands Expo Center in Las Vegas. Judges for the awards are: Claudia Winkler, president of GHI Solutions; Rob Russell, gaming analyst, Regulatory Management Counselors, P.C.; Frank Neborsky, general manager, the Downs at Albuquerque; Gerhard Burda, president and CEO, ESCAPES Advisory Services; Cliff Paige, slot director, South Point Casino Resort, Las Vegas; and Skyelar Perkins, corporate slot director, Choctaw Casinos. Nominations for the 2021 GGB Gaming & Technology Awards will open in June 2020, and include new products and services to be introduced in 2020 or 2021.

Global Gaming Business NOVEMBER 2019

WINNERS OF THE 18th ANNUAL GGB GAMING & TECHNOLOGY AWARDS Best Consumer-Service Technology GOLD MEDAL: IGT for IGT Advantage Player Experience Product Suite SILVER MEDAL: Everi for QuikTicket

Best Productivity-Enhancement Technology GOLD MEDAL: Gaming Analytics Inc. for GamingAnalytics.AI SILVER MEDAL: Casino Data Imaging for GlobalSuite Real Time Module

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Best Slot Product GOLD MEDAL: Everi for Smokinâ&#x20AC;&#x2122; Hot Stuff Wicked Wheel SILVER MEDAL: AGS for Starwall with Premium Orion Portrait

Best Table Game Product or Innovation GOLD MEDAL: NRT Technology Inc. for VL-PRO SILVER MEDAL: Shark Trap Gaming and Security Systems for Super Shuffler

Best Interactive Product GOLD MEDAL: Scientific Games for Open Gaming System (OGS) and Open Platform System (OPS) SILVER MEDAL: Konami Gaming, Inc. for SYNK Vision

NOVEMBER 2019 www.ggbmagazine.com

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MAKING MY POINT

Don’t Be Hasty Study all the alternatives and then delay some more before making an important decision

riedrich Saemisch couldn’t move. Well, actually, he could. It’s just that he didn’t want to. But he had to. His opponent, Aron Nimzowitsch, had just pushed a pawn—the one farthest to his left— one square up from its original spot. Innocuous enough, so it seemed, taking the weakest piece on the board in the weakest position on the board and advancing it the smallest increment on the board. But it had the result, the devastating result, the humiliating result of putting Saemisch into the chess equivalent of a rear-naked chokehold. The “zugzwang.” Saemisch, playing white, had plenty of pieces and plenty of options available. In fact, he held a slight material advantage over Nimzowitsch, a world-renowned grandmaster when this match was played in 1923. That wasn’t his problem. This was his problem: exercising any of those options—each of the 20-something moves Saemisch could make— would at best cost him a big chunk of that material. And at worst, it would decimate his position to the point he could never recover. The best action was inaction. Hence being in the zugzwang, which is German for having to act when you’d rather do nothing. Which in English is being up “Sh—’s Creek” without a paddle. So Saemisch resigned, falling on his own sword rather than giving Nimzowitsch the satisfaction of ripping it from his clutches and using it to slice him to ribbons. In business, as in chess, we sometimes find ourselves in Saemisch’s shoes. Could be a salary negotiation. Could be a sales pitch. Could be a strategic partnership. Could be just about anything where you’re better off checking your option—poker parlance for doing nothing—than trying to turn initiative into advantage. But in business, unlike in chess, there are no rules that say whose turn it is. We can’t get zugzwanged in

Global Gaming Business NOVEMBER 2019

By Roger Snow

the literal sense of the word because we can’t be compelled to move. So don’t. Instead, do these don’ts...

Don’t Go First You don’t need to attend a seminar by Chester Karrass—oh yeah, the guy that advertises in all the airline magazines!—to know this rule of thumb. In chess, white has an inherent advantage because it moves first, forcing black to counter and defend; however, in the business world, such an edge is no edge at all. You want to be black, to be the reactor, rather than the actor. Let’s say you’re up for a new job, or even a promotion. When the talk turns to money, shut up and listen. If asked, “What salary were you thinking about?” answer with something like, “Well, what do you think this job is worth for someone of my qualifications?” Otherwise, dance around and yell, “Show me the money!” to get your point across. Well, maybe not. Anyway, when you’re in this confrontation—and make no mistake, that’s what this is—you may have to blunt two, three, even four attempts from the other side to elicit an offer from you, but whatever you do, don’t do it.

Don’t Negotiate Against Yourself OK, so you won the game of chicken and got the other side to move first. And then, like anyone that remembers Alicia Silverstone’s dad in the movie Clueless, you summarily, albeit politely, rejected this offer, no matter how fair or generous it was. Because that’s just what he’d do. (And he had enough scratch to buy his brat princess daughter a new Jeep Wrangler and all the clothes she could stuff into her oversized closet in his oversized Beverly Hills mansion, so he must know what he’s talking about.)

When you counter, be prepared to wait for a response. Even if days turn into a week or two, don’t succumb to the tepid temptation to call back and lower your own offer. This is the weakest move possible (the chess equivalent of Pawn to Queen’s Bishop 3), and must be avoided at all costs. Or it will do just that: Cost you. Remember that all valuations are ambiguous to a degree, and you can’t negotiate against yourself just because you can’t handle a little awkward silence.

Don’t Move Until You Have To Chess, like basketball and football, has a shot clock. Not only must players take their turn, they must take all of their turns in a specified amount of aggregate time. But business is more like baseball or cricket; there’s no display counting down the seconds until you must take action… or take the consequences of inaction. And you want to keep it that way. When it’s your turn in a negotiation, chew as much of that clock as the other side allows. More time means more information, more opportunity for something better to come along, more time to evaluate alternatives. You never want to move until the last possible second; besides, going radio silent may entice the other side to increase its offer, a desperate display of negotiating against itself. Of course, when you’re the one proposing—or counter-proposing—it’s the opposite. You’ve got to take this topsy-turvy. You can’t let the people on the other end of this deal take all day to evaluate, deliberate, or ruminate. Start the clock. Any offer you make should have a sunset, a deadline to respond. That will let them know you mean business and that you know your own value. And that’s how you become the zugzwanger rather than the zugzwangee. Roger Snow is a senior vice president with Scientific Games. The views and opinions expressed in this article are those of the author and do not necessarily reflect the views and opinions of Scientific Games Corporation or its affiliates.

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The Social Network How ‘Free’ Online Casinos Came Into Their Own By Marjorie Preston

f you think about it, the term “social casino” is an oxymoron. Times two. First, most social gamers are parked behind an iPhone or computer screen somewhere, all by their lonesome, even as they engage in virtual slots, keno or poker with their online “friends.” Not really very social. Second, a social casino isn’t a casino at all, but a “freemium” version of same (though some players shell out plenty of dough for virtual coins, more playing time, digital tokens for pals and so on). Whether the term is accurate or not, social casino games are widespread, wildly popular, and growing. According to a study by Eilers & Krejcik, the value of the global social casino market in 2018 exceeded $5 billion, growing 11 percent in the final quarter alone. That momentum is expected to increase, with some projections at 20 percent per year. There seems to be room to grow—a 2016 Superdata report estimated there are 170 million active social casino players around the world, outnumbering casino gamblers four to one. Their favorite game by far is slots, and the player profile aligns with the casino slot demographic: mostly women, 40 years of age or older.

The Rise, Fall & Rise of Online Gaming Online casinos became widespread in the 1990s, but were cut short in the U.S. by the Unlawful Internet Gambling Enforcement Act (UIGEA) of 2006, which sent most real-money operators packing. The free-to-play models that remained were perceived by some as a sort of placeholder until real-money games returned. But they also proved to be a crackerjack loyalty and branding tool, and social casino gaming became an industry unto itself, a separate entity with a largely separate fan base—though there is “significant crossover,” observes Jeff Berman, chief commercial officer at social gaming supplier GAN. “There will always be people who want to play socially versus people who want to play for money,” Berman says, “but with our partners who operate both simulated and real-money gaming, we’ve found that 50

Global Gaming Business NOVEMBER 2019

the two (models) are in fact complementary.” Based on a study of its social gaming clients, “the No. 1 reason (social) users say they play is practice. “Social games are practice for their real-money gaming habits, whether online or offline. Qualitatively, when we talk to consumers they say, ‘I believe I get better at this, at slots and table games, by practicing online on social games.’”

A Busy Intersection GAN blurs the distinction by referring to social gaming as “simulated gaming,” and says it attracts a full spectrum of players—old and young, landbased and online, women and men. “We have plenty of cohorts who are male who are playing table games (and slots),” Berman says. “The pan-demographic is widespread, just like you see in typical gaming.” Thanks to social games, he adds, “our clients get more players in their doors, and they’re playing more. So we have found conclusively, with our brick-and-mortar clients who use our simulated gaming platform, a very big lift of visits on-property from the cohort of their users who play online. And on-property, their ADT is also significantly more.” Aside from practice, these players play to “scratch their itch when they can’t play at a casino,” Berman says. “Also, there’s plenty of data to show that the reason people don’t go play table games specifically at a casino is because there’s a lot of pressure. People don’t want to sit down at a blackjack table because they’re afraid of messing up the deck for other people. So learning and practicing online not only helps people get better, but more comfortable.” For strictly social players, the appeal of the pastime is not gambling to win money but casual entertainment, interaction, competition and one-upmanship—bragging rights for topping the leaderboard. The white paper Social Casino Gaming on the Rise by Alison Drain of the North Carolina Problem Gambling Program says social casino games are viewed as “a phenomenal tool” by industry leaders that “extends ‘the house’ to an online platform and creates a deeper relationship with customers, as well as driving visitation to the casino floor.” According to one study, U.S. casinos showed an average 28 percent uptick in traffic to their properties from visitors to social gaming platforms.

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“The big argument is that social gambling is arguably not legal gambling; therefore, no rules apply.” —Keith Whyte, Executive Director, U.S. National Council on Problem Gambling

Pay to Play? Andrey Kuznetsov, CEO of Kama Games, disputes the view that social casinos are the open end of a sales funnel to get players spending online and on-property. “There is no hard evidence to suggest that social casino gamers eventually migrate to real-money,” Kuznetsov says. “We may have some crossover in players who engage with both, but typically, our players aren’t that interested in real-money gambling.” He calls it “a well-known fact” that in freeto-play social games, only 1 percent to 2 percent of players actually pay. According to most reports, it’s advertising that pays the bills here, not the micro-transactions made by most social players. Kama’s online social poker game, Pokerist, was played daily by some 630,000 people in 2018, up from 510,000 the previous year, Kuznetsov says, “and we were proud to report that we hit our 120 million-player milestone too. At Kama Games, we’ve reported growth for the last three consecutive years, and last year, we grew double that of the overall social casino market. We see no indication that this type of growth won’t continue into the near future.” He agrees that people play games like Pokerist to sharpen their edge. “They have a love for poker and don’t want to have to risk large sums of money in order to enjoy the game, or want to learn how to play and practice when they have a free minute.” Others gravitate to the social opportunities. “We’ve really focused on improving socialization in recent years,” says Kuznetsov, “allowing our players to connect with one another in a variety of ways, whether that’s through standard chat options, sending lavish or interesting gifts or in games like craps, players can even transfer a dice throw to another player. We believe these socialization opportunities create ‘stickier’ communities and are a significant factor in keeping our retention numbers high. “Even without monetary gain, there’s still a thrill of the win when players emerge from a long game victorious over their opponents, but that doesn’t inherently translate into a sudden desire to gamble with real-world currency.” Though users are rewarded with ongoing free virtual currency (VC) for

various behaviors and activity, when the VC runs out but you want to keep playing, users have the option of paying for additional currency, says Berman. “We have individual users at all our casino properties who monetize at a rate that would drop jaws,” he says. “And it’s important for casino operators to think of these patrons within the full holistic view of their VIPs. If I were to tell any casino that based on use some social players are spending $100,000, they would want to roll out the red carpet and make sure they treat this person appropriately.”

Problem Gambling Concerns But Drain reports that for some people, social gaming can be a gateway to real-money gambling. In a 2015 study, she noted, “20 percent of adults and adolescents who played on free ‘gambling’ sites moved to online commercial gambling, and 16 percent of adults and 25 percent of adolescents moved from commercial to free gambling. The primary motivator was money.” That dynamic worked both ways, she added. “People moved from games to commercial gambling in an attempt to win money, and people moved from gambling to games as a way to avoid spending money.” Keith Whyte, executive director of the U.S. National Council on Problem Gambling, says the organization “has some concerns about social casinos in general, in terms of consumer protection, age limits, the transition from social to real-money gambling and the use, abuse or misuse of social casinos.” He doesn’t necessarily view these outlets as a snare for unwitting players, however. “These casinos are immensely popular. In some cases it would be silly to transfer (free customers) to real-money gambling, because the social casinos are making so much.” That said, Whyte adds, “the burden of compliance” for age verification is “completely on the customer,” which could let underage customers slip through. In Whyte’s view, the social industry “basically said we don’t care about a small number of kids; they probably don’t have credit cards anyway. NOVEMBER 2019 www.ggbmagazine.com

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“Even without monetary gain, there’s still a thrill of the win when players emerge from a long game victorious over their opponents, but that doesn’t inherently translate into a sudden desire to gamble with real-world currency.” —Andrey Kuznetsov, CEO, Kama Games

Keep ’Em Coming: User Acquisition and Retention he cost of user acquisition in the social-gaming space is high in traditional traffic sources (Facebook, Twitter) due to strong competition, says Andrey Kuznetsov, CEO of Kama Games. “To counter this, we are constantly exploring new channels where the potential competition is not as intense (for now, anyway) so the quality and the cost of traffic is still within what we believe are reasonable ROI expectations.” As for player retention, “We focus on our own tried-and-tested monetization mechanics to not only retain current users but to also increase their lifetime value (LTV). And we use various channels and executions to retarget our lapsed players, too.” Jeff Berman, chief commercial officer at GAN, says the company’s initial customer acquisition outreach “always starts with an operator’s existing database, especially those in their reward programs. They convert the highest. They monetize the highest. And again, it translates into more business on-property and a higher ADT. “The social gaming category as a whole is highly competitive... If you look at the big independent social gaming companies (like Big Fish, etc.), they’re spending significant amounts on customer acquisition—literally millions per month... It’s extremely expensive and this is a very sophisticated audience. Players spend an incredible amount of time surfing, looking where to get more free coins. We work with all our casino clients to understand their appetite in terms of aggressively competing with those types of casinos in addition to focusing primarily on their local capture area and loyalty members.” The ability to integrate loyalty programs into the social gaming platform is “absolutely key,” Berman says. “When you’re talking to an operator who already has a sizeable database, when they reward players further through social gaming websites in the same way they get rewarded for playing on-property, the conversion all up and down the funnel will really kick in.”

“The big argument is that social gambling is arguably not legal gambling; therefore, no rules apply,” he says. “I understand where they’re coming from, but nothing prevents them from observing Know Your Customer (safeguards). Nothing prevents them from adding warning messages. I’m surprised regulators haven’t taken a closer look at social casinos.” Meanwhile, it seems a sure thing that these games will become even more pervasive. “This is largely due to the advance of mobile technology and the popularity of social casino games on these devices,” says Kuznetsov. “In the digital age, most people have a mobile phone-to-hand 24 hours a day, and the advancement of mobile technology and internet coverage has been a strong driving force for all genres of online gaming, opening it up to a much wider audience. In fact, mobile games was the fastest growing sector of the overall gaming market in 2018, beating consoles, PC/Mac, and handheld gaming.” GAN’s Berman says he is “always amazed” at how many casinos in the U.S. “haven’t done something in the social-gaming space. “It’s a tremendous way to generate revenue, stay connected with your existing database and grow your database. There are still an unbelievable number of casinos who aren’t on board with this. I still go to conferences where the panel topic is, ‘Is this the right time?’ It flat blows me away. Forget about the money and revenue generation. Staying connected to your database is reason enough.”

Global Gaming Business NOVEMBER 2019

2020

SAVE THE DATE EDUCATION OCTOBER 5-8 EXPO HALL OCTOBER 6-8 SANDS EXPO, LAS VEGAS

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FRANKLY SPEAKING by Frank Legato

see there’s a Sir Mix-A-Lot slot machine now. And for me, that’s a dream come true. “I Like Big Bucks” debuted a couple of months ago at the Seminole Hard Rock in Hollywood, Florida, a slot machine featuring the beat of “Baby Got Back” during game play. Sir Mix-A-Lot himself had a “major influence on the creation of the game,” said a press release from the manufacturer of the game, listed as b. POD by Bluberi. I’ve been waiting for this game a long time, because I... Oh, who am I kidding? I’m totally mystified by everything in that paragraph above. We’ll start with “Who the heck is Sir Mix-A-Lot?” and work our way to “What on Earth is a b. POD?” Now I know that Sir Mix-A-Lot is a famous rapper, who scored No. 1 on the Billboard Hot 100 in 1992 with the song that forms the backdrop for game play on the b. POD. This story serves as yet another reminder that I’m unfamiliar with any popular music-based theme that is more recent than, say, 1973. Hey, I loved the Sinatra game. While you’re spinning the reels on this slick new Sir Mix-A-Lot game, you are treated to a soundtrack of that 1992 hit, which, I found out, is not about “Baby Got Back” as in “My baby got back to me,” but is about “Baby Got Back” as in “My baby’s got a big backside.” Ah, yes, imagine the bliss as you spin the reels to the lyrics of this romantic ballad: Don’t want none unless you got buns, hon. Fonda ain’t got a motor in the back of her Honda. Do side bends or sit-ups, but please don’t lose that butt. Man, I have tears in my eyes. The casino industry, of course, has a way of resurrecting stars of decades past. Had the industry matured a few decades earlier, Benny Goodman would have had a residency at Caesars Palace. As it stands, our industry often serves as a sort of purgatory for otherwise dead acts. Hey, where else are you going to find Sir Mix-A-Lot in his prime? Or Adam Ant, for that matter? OK, as a cutoff for my pop music fandom, 1973 may have been a bit of an exaggeration. I did listen to popular music on the radio a bit longer than that. Stevie Ray Vaughan was around until 1990, after all. Also, I listened to my car radio in the 1980s, since the only other option at that point was to fumble around with cassette tapes. (They were these small plastic cases with miniature reels of tape that... Oh, just Google it.) As I’ve said before, the 1980s were largely a trash heap of popular music, with a few exceptions. Some of those exceptions were quite amusing—like my favorite, Devo, along with Madness, Elvis Costello,

Global Gaming Business NOVEMBER 2019

and the quirky British star Adam Ant. He was the makeup-laden, psycho-ish frontman for Adam and the Ants, owners of several chart-topping hits in the ’80s—notably on this side of the pond, “Goody Two Shoes.” Adam Ant is one of the nostalgia acts currently playing at the Chumash Casino in California, along with Air Supply, that Australian group with the mushy soft rock that forms background music on the “Soundscapes” channel on my TV. (I put it on when I want my dog to go to sleep.) While I’m not buying a ticket to any of these shows, I note them here as a counterpoint to those who think the 20-somethings are about to take over the casino industry. People tend to cling to the music of their youth like bare knuckles grabbing at the edge of a cliff (I know I do), and the fact that Adam and the Ants are playing a casino illustrates that people who were young 30 years ago can still pack a casino showroom. Hey, The Who is playing Caesars Palace, for crying out loud. Clinging to youth also is why I tend to gravitate toward these music-nostalgia slot machines, although my tastes lean more toward the Willie Nelson, ZZ Top and Motown versions than Sir Mix-A-Lot. I’m probably not going to play the Adam and the Ants slot machine when it comes out. Now, if someone produces a Devo slot machine, I’m there. Crack that whip! Give your loss the slip! Step on a crack! Bring the jackpot back! Incidentally, it may come as a shock to you, but Adam Ant is not his real name. He evidently decided that “Stuart Leslie Goddard and the Ants” was not a good band name. Meanwhile, this month at Ocean Casino in Atlantic City: Paul Anka Sings Sinatra. Now you’re talkin’. VIC TOR RINAL DO

Sir Mix and Adam Ant

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NEW GAME REVIEW by Frank Legato

The Big Spin Eclipse Gaming

he Big Spin is a new game series in Eclipse Gaming’s product portfolio, showcased on a striking new 43-inch portrait cabinet. The Big Spin Casino and The Big Spin Mardi Gras each dazzle with vivid imagery and attention-grabbing, oversized prize wheels. The Big Spin Casino and The Big Spin Mardi Gras each feature classic symbols on a three-reel, 27-line base game configuration. An entertaining pick bonus can be won in the base game, while the minor and top progressive jackpots can be won during a spin of the Big Spin Bonus Wheel. The Big Spin Bonus Wheel is triggered from the third reel. Bells ring in an attention-grabbing feature before the player spins the wheel to win credits, free spins,

or even the top progressive jackpot. When the dollar sign symbol hits on all three reels, players are welcomed into the Pick Bonus. Players choose one of the three symbols on the screen to reveal the mystery credit prize amount. Manufacturer: Eclipse Gaming Platform: Galaxy Format: Three-reel, 27-line video slot Denomination: .01, .02, .05, .10, .25 Max Bet: 450 Top Award: Progressive; $5,000 or $125,000 reset Hit Frequency: 30% Theoretical Hold: 2%-15%

Bowl of Gold

Empire Technological Group

he latest release from Empire Technological Group, Ltd. on the supplier’s Akkadian slot cabinet is a three-game series featuring a five-level linked progressive, Bowl of Gold. Bowl of Gold features progressives that can be won at any bet and a hit rate that increases drastically as players increase their bet. The three titles in the Bowl of Gold series are Door to Riches, Gold Dragon and Golden Piggy’s Fortune. Each game in the Bowl of Gold series has a different volatility profile, which, the company says, makes Bowl of Gold the ideal link to attract every type of player. Door to Riches is the high-volatility option that features a gold symbol buy-up feature that encourages players to chase larger prizes. The free games bonus customizes the experience for any player with four different selectable free game choices, including a mystery option that could award any combination of the other three. Gold Dragon is the medium-volatility option featuring two-of-akind wins from a three-symbol-high dragon. Players have the ability to win over 1,000 times the bet with full dragons on every reel. The free games bonus also offers the flexibility of multiple options. Each of the three options will add wilds to the reels for each spin, ensuring that the player’s experience gets better as the bonus progresses. Golden Piggy’s Fortune is the low-volatility option, which features constant action, with frequent wins and more time on device.

Global Gaming Business NOVEMBER 2019

Manufacturer: Empire Technological Group, Ltd. Platform: Akkadian Format: Five-reel, 243-ways-to-win video slot Denomination: .01, .02, .05, .10, .20 Max Bet: 1,360 Top Award: Progressive; $10,000 reset Hit Frequency: 22%, 30%, 50% Theoretical Hold: 2%-12.2%

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Dollar Storm

Aristocrat Technologies

ollar Storm is one of Aristocrat’s launch games for the new MarsX cabinet, available on a lease option created exclusively for the cabinet. Dollar Storm is the highly anticipated evolution of the industry’s top two products, Lightning Link and Dragon Link, with an added multi-site progressive jackpot. Dollar Storm combines the best features of both of the games. Notably, Dollar Storm takes the globally recognizable theming of Lightning Link to the next level and incorporates high denominations inspired by Dragon Link—ranging from a penny through $2—while introducing an operator-configurable $5 option and an “any bet qualifies” rapid-hitting multi-site progressive starting at $50,000. Featuring the player-favorite “Hold & Spin” bonus, Dollar Storm provides patrons with plenty of the familiar “What You See Is What You Get” game mechanic. Players can win the multi-site Super Grand Jackpot during the Hold & Spin bonus with a new MSP trigger mechanic, as well as the Grand Jackpot, Major Jackpot, and Minor and Mini bonuses, and credit prizes using the same familiar functionality as Lightning Link and Dragon Link. Dollar Storm themes include Emperor’s Treasure, Caribbean Gold, Egyptian Jewels and Ninja Moon. Dollar Storm plays out on the new MarsX cabinet’s two 27inch, 4K displays and new Gen 9 internal components. A premium virtual button deck offers a high definition and

minimalistic way of wagering. A 4:1 speaker system optimally projects audio from around the displays, providing crisp, balanced sound. Gamecomplementary corona sync edge lighting creates a unique play environment. The MarsX fits easily into any standard cabinet space, and when placed back-to-back, its unique shape opens sight lines across the casino. Manufacturer: Aristocrat Technologies Platform: MarsX Format: Five-reel, 25-line video slot Denomination: .01, .02, .05, .10, .25, .1.00, 2.00, 5.00 Max Bet: 250 Top Award: Progressive; $50,000 reset Hit Frequency: Approximately 50% Theoretical Hold: 4%-14%

Red Silk AGS

his latest game on the AGS Orion Portrait cabinet is part of the Ultimate Choice Jackpots series. It features a free-spin feature with sticky wild reels and a progressive picking bonus, all draped in a nocturnal blue and red scene that provides a striking backdrop on the tall Orion flat-screen, high-definition monitor. The base game is a five-reel, 75-line video slot. In a primary-game bonus feature, collecting two gold coins on one reel triggers the Wild Reel Bonus, in which all three spots on the triggering reel turn into wild symbols. The wild reel “sticks” for the subsequent two spins. Three or more bonus symbols trigger the free-spin bonus. During free spins, landing a single coin symbol triggers the Wild Reel feature. Finally, a mystery trigger enacts the Jackpot Pick Bonus. The screen displays 10 lanterns, and the player picks one to reveal a credit prize or one of three progressive jackpots, all substantial amounts—resets are $100, $500 and the top $8,000.

Manufacturer: AGS Platform: Orion Portrait Format: Five-reel, 75-line video slot Denomination: .01 Max Bet: 750 Top Award: Progressive; $8,000 reset Hit Frequency: Approximately 50% Theoretical Hold: 5%-16%

NOVEMBER 2019 www.ggbmagazine.com

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GOODS&SERVICES James Maida

MAIDA COMPARES TECHNOLOGY, GAMING LAW AND REGULATION

ames Maida has seen it all. Before he founded Gaming Laboratories International (GLI), he was employed by the New Jersey Division of Gaming Enforcement and saw firsthand how gaming technology is always far ahead of the regulations and law, a reason for starting GLI. Speaking at the William Boyd School of Law at UNLV last month, Maida outlined a handful of technology advances that were made despite there being no basis in the law or regulations covering them. In the early days of mechanical reels, there were a small number of reels and stops on those reels that limited the kinds of payouts that could be issued, making jackpots hard to hit. But by inventing virtual reels, the number of stops reached to the tens of millions, allowing many kinds of jackpots and results. This also created the “near miss” feature that made players believe that almost hit a jackpot by one stop, and the wide-area progressives or the “Megabucks” style of games that would link hundreds of casinos together and allow massive jackpots. Laws and regulations were then written to account for those technology advances. In states and regions where gaming wasn’t allowed, innovative ways around the existing laws were required. Maida recalled discussions with then-New York Governor Mario Cuomo about the ban on inserting “something of value” into a slot machine. To get around that regulation, they created cashless gaming so a card with no inherent value was used to access funds to play the machine. The system debuted at the Turning Stone casino in New York over 20 years ago. In Indian Country, mechanical pull-tab machines were succeeded by Class II “bingo” machines that got around the restrictions on gambling devices and stuck to definitions of what 58

Global Gaming Business NOVEMBER 2019

kinds of games were legal. Tribes were allowed to offer pull tabs and bingo, and manufacturers devised games that used the same determination system, but on slot-like devices, said Maida. Electronic table games were also developed to evade laws that prohibited live games but permitted slot machines in several states, said Maida. The games worked with a random number generator system and then were considered legal slot machines. Today, those games are common even in jurisdictions that permit live tables. Maida said the message he was delivering to the law students in attendance was, “When law limits conventionality—innovate.”

PERELMAN UPS STAKE IN SCI GAMES—AGAIN

cientific Games Corp. Chairman Ronald Perelman is continuing his drive to raise his stake in the company. Last month, Perelman spent more than $2.24 million to ac- Scientific Games Chairman Ronald Perelman quire 100,000 shares in the company, according to a filing with the U.S. Securities and Exchange Commission. In June, Perelman spent more than $6 million to acquire slightly more than 300,000 shares in aggregate in Scientific Games. Perelman acquired the new shares at an average price of US$22.41 per share, according to the filing. He now holds more than 39 percent of the firm’s common shares. Scientific Games said in August that its consolidated adjusted earnings before interest, taxation, depreciation and amortization (EBITDA) fell by 1.5 percent year-on-year to $335 million in the second quarter of 2019. The company posted a net loss of $75 million in the three months to June 30, compared with a $6 million loss registered in the second quarter of last year. In May, the company completed the initial public offering of a 17.4 percent minority interest in SciPlay Corp., raising more than $400 million. The company said it received $301 million in proceeds from the offering, which it would use to pay down net debt, which stood at about $8.8 billion at the end of the first half.

ARISTOCRAT TO LAUNCH DOLLAR STORM AND STAR TREK: THE NEXT GENERATION

ristocrat Technologies last month announced the debut of two new titles. The company released a new licensed title on its premium Edge X cabinet, Star Trek: The Next Generation. Based on the 1990s TV version of the sci-fi classic starring Patrick Stewart as Enterprise Captain Jean-Luc Picard, the game was launched at last month’s Global Gaming Expo. The Edge X cabinet features two stacked, horizontal, curved 43-inch LCD screens displaying panoramic views, with stereo symphonic surround sound and a virtual button deck, all in a cabinet that occupies a largerthan-life footprint. And at San Manuel Casino in Highland, California, Aristocrat launched Dollar Storm, the next evolution of the hold-and-spin mechanic popularized by the hit game Lightning Link. “We are thrilled to present the world premiere of Dollar Storm in partnership with Aristocrat,” said Kenji Hall, chief operations officer of San Manuel Casino. “San Manuel Casino strives to provide our guests with a best-in-class gaming experience by offering the newest and most innovative games in the country.” Dollar Storm will debut on the new MarsX cabinet with modular, interchangeable features. The thin profile and corona lighting offer a player-forward experience to amplify game play.

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Kangwon Land casino

NOVOMATIC INCREASES FOOTPRINT IN SOUTH KOREA

ustrian gaming supplier Novomatic AG announced it is expanding its footprint at South Korea’s Kangwon Land Casino. Via local distribution partner Korea Gaming Solution, the supplier recently installed 68 new video slots at the casino, bringing its total footprint there to 280 Novomatic machines. The Kangwon Land resort, located northeast of Seoul, is the only casino in the country where South Koreans are allowed to gamble. It is operated by Kangwon Land Inc. The latest addition of Novomatic product to Kangwon Land’s casino floor includes the Panthera 2.27 cabinet, the Dominator Curve 1.43, and the Gaminator Scorpion 2.24, according to the release. Each of the cabinets is said to provide a selection of games that “meet the preferences of the casino guests” at Kangwon Land. “I am very pleased that our guests really enjoy playing Novomatic products,” said Sang-Rae Lee, Kangwon Land’s slot manager. “I look forward to seeing more new games coming out in the future.”

ACRES 4.0 LAUNCHES CYBERMAX SLOT SYSTEM

cres 4.0 announced the launch of CyberMax, a slot system that gives casinos total ownership and control of detailed behavioral data about their games and players. Acres 4.0 CEO “CyberMax is to existJohn Acres ing slot system technology as Netflix streaming was to Blockbuster video technology,” said John Acres, CEO of Acres 4.0. The foundation of CyberMax is a fast data pipeline that instantly delivers detailed behavioral information to casino operators and any vendor they wish to share it with. Operators receive exponentially more data, because reports occur in real time with every handle pull, and include large amounts of information ignored by existing player tracking systems. There are not costly, proprietary interfaces to buy and the data pipeline is guaranteed to remain unchanged across future versions.

For more information or to subscribe to the database or monthly report contact Ashley Diem at ADiem@FantiniResearch.com or call +1-302-730-3793 - www.FantiniResearch.com NOVEMBER 2019 www.ggbmagazine.com

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CUTTING EDGE by Frank Legato

Payout Solution Product: Jackpot Mobile Manufacturer: FABICash

ABI Jackpot Mobile offers a full, swift jackpot payout solution for casinos. The web application can be used by cashiers to process jackpots in the cage, by slot attendants using mobile tablets on the casino floor, and payouts conducted at jackpot kiosks. With FABI Jackpot Mobile, floor cashiers can collect all of the customer’s information required by the casino and federal regulators, and process the jackpot on the handheld device right at the slot machine. The jackpot is processed in minutes and the customer never has to leave the seat. The FABI Jackpot Mobile application allows for scanning of customer identification via image capture, 2D barcode scanning or magnetic strip. Tax forms (IRS Form W-9, Form 1042-S) and required

division of gaming forms for slot payout can be completed through the handheld device and retained electronically. It flawlessly integrates with the FABITrack Title31 and AML Compliance product for added player tracking and transaction monitoring, or can be used as a stand-alone application. Regardless of the jackpot payout process in use, FABI Jackpot Mobile is an easy-to-use, full-featured solution to greatly reduce payout wait times, enhance customer experience, and ultimately increase customer retention. For more information, visit fabicash.com.

Real-Time Service Product: QuickFind Manufacturer: DataSpade

nabling gaming executives to establish real-time response to customer interaction on the gaming floor unleashes a potential gateway of success for servicing customers on demand. DataSpade’s QuickFind does exactly that—it offers gaming directors exclusive and actionable insight for customers on the floor when it matters most. QuickFind is an intranet-based software solution that unifies the data and communication between hosts, player’s clubs and the marketing department, on demand and in real time. This software solution was designed for operators to better serve their most valuable clientele. Casino hosts are granted the ability to locate and assign themselves a top-tier player when they enter the gaming floor and begin their carded play. Hosts can also research and identify quality players, new players, quick-loss players and decliners at their fingertips. The ability to establish new relationships and manage current players on the fly provides an efficient solution for hosts and allows for better customer service. Consolidating player data in real time, while bridging together several departments at once, creates a dynamic opportunity for enhanced customer service. Player’s club personnel are able to see players’ points earned for the day, check their tier status and receive hosts’ notes on players on demand with QuickFind. Furthermore, the data is relayed to the marketing department, which is granted access to resolve direct mail conflicts, assign hosts to players and look up mail flags for in-house players as needed. Strengthening operators’ relationships with their customers is always a top

Global Gaming Business NOVEMBER 2019

priority in the gaming industry. By integrating and unifying these departments, QuickFind establishes an efficient process for managing valuable employee and player time. Operators also have the ability to run various reports and summaries as needed for further analysis in a user-friendly and intuitive format. Formatted for PC and mobile use, QuickFind is a web-based application to provide real-time results. Enhancing the player experience by using on-demand data to improve operator reaction time to client carded play is not only necessary, but results in better overall satisfaction and efficiency for customers and operators alike. For more information, visit dataspade.com.

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PEOPLE SENECAS MOURN PASSING OF FORMER PRESIDENT BARRY SNYDER

ormer Seneca Nation Barry Snyder President Barry Snyder, who was instrumental in bringing the tribe into the casino era, has died at the age of 79. Snyder was a force in the affairs of the western New York tribe for more than half a century, serving five terms as president. Seneca Nation President Rickey Armstrong Sr. said, “He will deservedly be looked upon as a leader for all times. Throughout his life and through his service, Barry elevated the Seneca Nation and the Seneca people. As president, he touched every facet of life on our territories.” Snyder’s administrations saw major advances in the tribe’s economy and infrastructure, including the development of high-quality health care, education, recreation and public safety facilities. But his greatest economic achievement was the introduction of Class III casino gaming, which led to the development of Seneca Niagara Resort & Casino in Niagara Falls, Seneca Allegany Resort & Casino in Salamanca and Seneca Buffalo Creek Casino in downtown Buffalo. He served for years as chairman of the board of Seneca Gaming Corp., a private company that has grown to a staff of 4,000 employees, where he led a growth strategy that included significant expansions at all three properties.

BAUMANN NAMED REGIONAL PRESIDENT AT CAESARS ATLANTIC CITY

aesars Entertainment Corp. has named a regional president for its three Atlantic City casinos. Ronald Bauman will oversee Bally’s Atlantic City, Caesars Ronald Baumann Atlantic City and Harrah’s Resort Atlantic City as well as Caesars Interactive. Baumann is no stranger to Atlantic City. For more than 17 years, he held senior leadership positions at multiple resort properties operated by Caesars. He is currently general manager and senior vice president of Indiana Grand Racing & Casino in Shelbyville, Indiana.

The position at Caesars opened up when former Regional President Kevin Ortzman left the company in August. Bauman’s appointment comes as Eldorado and Caesars work on an $18.3 billion merger that would create the largest gaming company in the United States with nearly 60 casino properties in 16 states, including four of the nine casinos in Atlantic City. The deal is still pending shareholder approval as well as permission from federal and state regulators.

PALMS GM JON GRAY: ‘TIME TO GO’

alms Casino Resort General Manager Jon Gray, who oversaw a masJon Gray sively expensive, and justcompleted redevelopment of the off-Strip casino hotel, has resigned. Operating company Station Casinos, a subsidiary of publicly traded Red Rock Resorts, issued a statement on Gray’s departure, saying, “With the third and final phase of the redevelopment project having been completed in late September, Jon has elected to move on to the next chapter of his career.” It added that “Jon will be greatly missed at the Palms. We are extremely grateful for his many valuable contributions to the property over the years and wish him the very best of success as he proceeds to his next challenge.” Gray said, “It was time to go. It was time to move on. I was brought on to reposition the Palms and help rebuild it. I’m proud of what we have done with the project and now I am ready to move forward.” Kord Nichols, Station’s senior vice president of operations, was appointed to fill in until a replacement is named.

HAWTHORNE RACE COURSE HIRES KLINE

aming and racing operations veteran Kevin Kline has joined Hawthorne Race Course in Cicero, Illinois in the new position of chief executive officer of gaming. The facility recently Kevin Kline began a $450 million development project and applied for a casino license. The appointment, announced one month after Hawthorne applied for a casino license, is “in anticipation of its licensure,” the track said. The Illinois Gaming Board has until the end of the year to rule on the application. Kline developed and managed casino and enter-

tainment businesses including Resorts World Catskills Casino and Monticello Raceway in New York, Caesars Entertainment’s Horseshoe Cincinnati, Turfway Park in Florence, Kentucky and the Horseshoe Casino Hammond in Indiana.

WYMAN NAMED INNOVATION GROUP PARTNER

he Innovation Group has announced that current Senior Vice President Brian Wyman has become a partner in the firm. Wyman joined The Innovation Group in 2016 as an associate, responsible for establishing a data science practice with an emphasis on marketing and operations support for gaming industry clients. During his tenure, these services have expanded into the Brian Wyman cruise ship, sports, health care and investment industries, and led to the firm’s recent launch of its Gameday Experience service for stadium and arena operators. Wyman oversees the firm’s sports betting practice and established The Innovation Group’s Las Vegas office, which he will continue to lead. Prior to joining The Innovation Group, Wyman spent more than 15 years transforming data into actionable intelligence, insights and bottom-line results across multiple industries, including gaming, hospitality, finance and defense.

GGB

November 2019 Index of Advertisers

AGEM . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 AGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Eclipse Gaming Systems . . . . . . . . . . . . . . 17 Empire Technological Group . . . . . . . . . . . 39 Everi . . . . . . . . . . . . . . . . . . . . . . . . . . . 5, 41 Fabicash . . . . . . . . . . . . . . . . . . . . . . . . . . 59 Fantini . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 G2E . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 GLI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 IGT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Konami . . . . . . . . . . . . . . . . . . . . Back Cover Konami . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Merkur . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Motivate ROI (Wells Fargo) . . . . . . . . . . . . 11 RPM Advertising . . . . . . . . . . . . . . . . . . . . 10 Rush Street Gaming . . . . . . . . . . . . . . . . . 23 San Manuel . . . . . . . . . . . . . . . . . . . . . . . . 27 Scientific Games . . . . . . . . . . . . . . . . . . . . . 9 Scientific Games . . . . . . . . . . . . . . . . . . . . 37 Snoqualmie . . . . . . . . . . . . . . . . . . . . . . . . 31 UNLV Foundation . . . . . . . . . . . . . . . . . . . 55

NOVEMBER 2019 www.ggbmagazine.com

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CASINO COMMUNICATIONS

Mark Giannantonio President & CEO, Resorts Atlantic City

esorts Atlantic City was on the verge of closing several years ago until Morris Bailey bought the property for $30 million. After the death of Dennis Gomes, his first CEO, Bailey brought in Mohegan Gaming & Entertainment to run the property. Mohegan appointed longtime Atlantic City executive Mark Giannantonio as president and CEO. In addition to adding meeting space, renovating hotel rooms and casino space, and introducing more F&B outlets, Giannantonio has guided the casino through the openings of two nearby casinos. He spoke with GGB Publisher Roger Gros at his offices at Resorts in July. To hear a podcast of this interview, visit GGBMagazine.com or subscribe to GGB Podcasts on iTunes or Spotify. GGB: It’s been one year since your neighbors opened last year, Hard Rock and Ocean. What kind of impact did that have on Resorts? Mark Giannantonio: Well, it’s an unprece-

dented amount of capacity to open all at one time. It’s unlike anything I’ve ever seen. The great thing is that we’re attached to Hard Rock (via a pedestrian connection). Jim Allen and Joe Lupo are great operators. And you have the commitment from the Jingoli family and Jack Morris family. So it took that type of brand and that kind of leadership to take over that property to get it up and running so quickly. They’re doing a really good job there. So we’re happy that we’re connected to them. We try to work collectively, and we’re working as a group with Ocean as well, to try to rebrand this part of town. We think that’s very important. You were up here on your own when those two properties at the end of the Boardwalk were closed. Does the opening of the two properties give you critical mass now?

Global Gaming Business NOVEMBER 2019

There were pros and cons about being the only one. Clearly, when the five casinos closed, there was a lift in everybody’s boat. But at the end of the day, Atlantic City’s about bringing as many people to town as possible. So having Hard Rock connected to us, it just makes the synergy so much better. But you just didn’t wait for the new properties to reopen. You make preparations.

When Morris (Bailey) was looking to buy something in Atlantic City, he looked at a number of different properties. He selected this property with the vision of bringing it back to life, but he needed to spend money here to bring this property back, which he’s allowed us to do. We really prepared for this day with the new casinos opening. How do Morris Bailey and Mohegan Gaming & Entertainment work together?

After the unfortunate passing of Dennis Gomes, a dear friend of mine, Morris was about a year and a half into this, and he had to decide exactly what to do, and whether he was going to sell and get out, or double down. He brought in Mohegan after a pretty extensive search for a management company. So, Mohegan is responsible for the management of the asset. They own 10 percent of the company. It’s like a match made in heaven. (Mohegan CEO) Mario Kontomerkos and his team do a great job. They’re doing a lot of expansion elsewhere, but this was one of the first assets that they took under management, so it’s important to them. They really have helped us and guided us about how we deploy capital. Probably the most important thing is that we have the access to their database. They are a very good partner and with Morris, there’s no better person in the business.

The competition in Atlantic City has always been tough, and this round is no different. You’ve got these crazy tier-matching programs in all the casinos. How can you respond to that?

It really is crazy. I think it’s just everybody’s reaction to what is an extremely difficult period of time. Organically, the same store is just not growing where we’d like it to be. We’ve been bucking the trend a bit, where our tables are actually growing, and you know, we have great Asian business as well. But at the end of the day, it’s a hard market, and I don’t think it helps with all these aggressive offers. Some people think it’s a race to the bottom, and I can’t disagree. You’ve been lucky enough to have DraftKings under your roof as one of the leading sports betting sites in New Jersey. How much has that helped bring new customers in here?

DraftKings are professionals beyond belief. Morris cut a great deal with them, and we’re excited about their success. We partnered and opened up what we think was the nicest and best sportsbook in Atlantic City back in November, and it’s immediately transformed our property. It’s a state-of-the-art sportsbook, but it’s coupled with a great sports bar, great food, and then we opened a sushi restaurant right next to it, and refined our Asian restaurant. So, that whole area has been livened up, and there’s no question, a whole new customer is coming to the property now. And that helps in so many ways. The ancillary revenues and gaming revenues are all going up. So we are thrilled about the success. And we’re certainly thrilled that DraftKings is doing so well online, too.

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