Global Gaming Business, October 2014 by Global Gaming Business

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Global Gaming Business Magazine

Global Games 2014 The HOTTEST SLOTS in a changing gaming world October 2014 • Vol. 13 • No. 10 • $10

Giant GTECH What the IGT deal means for what is now the largest gaming supplier in the world

NEW CASINO EXPERIENCE PART II TRACKING NON-GAMING SPEND MOBILE MARKETING CALIFORNIA POKER POSSIBILITIES ARISTOCRAT’S ODELL

10 Steps to a Successful Online Poker Room

Official Publication of the American Gaming Association

WE GIVE EVERYTHING WE’VE GOT TO PROVIDE CROSS-PLATFORM SOLUTIONS FOR YOUR OPERATIONS – IN THE CASINO, ON THE GO, AND AT HOME. As your partner in innovation, we are united by our passion to provide trailblazing solutions that increase your revenue and streamline your operations – in games, systems, table products and interactive. And when you go all in with Bally, we’ll provide a single view of your player through

our integrated systems, iGaming platform, and mobile concierge solutions. Visit us at G2E booth #1126 and see how Bally goes all in for you – and why going all in with Bally is good for your business.

WONDER WOMAN: TM & © DC Comics. (s14). Betty Boop - © 2014 King Features Syndicate, Inc. /Fleischer Studios, Inc. TM Hearst Holdings, Inc. / Fleischer Studios, Inc. www.BettyBoop.com. Duck Dynasty: © 2014 A&E Television Networks, LLC. All rights reserved. Duck Dynasty, A&E and their associated logos are the trademarks of A&E Television Networks, LLC. All rights reserved. FRIENDS: TM & © Warner Bros. Entertainment Inc. (s14). All other marks owned by, or under license from, Bally Technologies, Inc. or one of its wholly owned companies. Unless otherwise indicated: © 2014 Bally Technologies. All rights reserved.

BallyTech.com

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CONTENTS Global Gaming Business Magazine

Global Games 2014 Page 30 Our annual snapshot of the slot sector shows that even for an industry sector in the midst of major consolidation, none of the major slot manufacturers has missed a beat in R&D, from new cabinets to new game mechanics to completely new game styles. Hereâ&#x20AC;&#x2122;s our annual snapshot of each of the industryâ&#x20AC;&#x2122;s major slot-makers. By Frank Legato, Marjorie Preston and Mike Pritchard

Ainsworth Game Technology . . . . . . . . . . . .31 American Gaming Systems . . . . . . . . . . . . . .34 Aristocrat Technologies . . . . . . . . . . . . . . . .38 Aruze Gaming . . . . . . . . . . . . . . . . . . . . . . .44 Bally Technologies . . . . . . . . . . . . . . . . . . . .48 Cadillac Jack . . . . . . . . . . . . . . . . . . . . . . . . .54 Casino Technology/Alto Gaming . . . . . . . . .58 GTECH . . . . . . . . . . . . . . . . . . . . . . . . . . . . .60 Incredible Technologies . . . . . . . . . . . . . . . .66 Inspired Gaming . . . . . . . . . . . . . . . . . . . . . .70 International Game Technology . . . . . . . . . .72 Konami Gaming . . . . . . . . . . . . .76 Multimedia Games. . . . . . . . . . . .82 Novomatic/AGI . . . . . . . . . . . . . .88 Ortiz Gaming . . . . . . . . . . . . . . .92 WMS Gaming . . . . . . . . . . . . . . .94 Zitro Games . . . . . . . . . . . . . . . .100

Global Gaming Business OCTOBER 2014

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Vol. 13 • No. 10

october 24 COVER STORY Gaming Powerhouse

COLUMNS 8

GTECH S.p.A. prepares to merge its worldwide lottery business with the land-based, social and online gaming content of the world’s largest slot manufacturer as its integration with IGT begins to gain steam.

Geoff Freeman

Cover photo: Top GTECH executives include (l. to r.) Renato Ascoli, president of products and services and general manager; Rachel Barber, chief technology officer; and Victor Duarte, senior vice presdient of gaming and content and SVP of North American commercial gaming.

By Marjorie Preston

122 More Casino Experience Part 2 of a comprehensive report into what’s required to provide the type of customer service that will ensure profitability. By Mark A. Birtha

120 Marketing Marketing to Millennials Rich Sullivan

126 Global Gaming Women Scholarship in Action Alina Harris

DEPARTMENTS

FEATURES Social media have changed the marketing game for casinos, thanks to nearly 7 billion mobile phone subscribers.

Fantini’s Finance The Big Mo Frank Fantini

By Frank Legato

20 The New Marketing

AGA Leading Our Industry at G2E

GGB iGames Our monthly section highlighting and analyzing the emerging internet gaming markets. Features California Dreaming . . . . .102 Several stakeholders in California’s tribal gaming market finally seem to be approaching agreement on how to implement tribal internet gaming, although hurdles remain.

128 The Complete Picture

By Dave Palermo

System suppliers and operators continue to work together to capture data on non-gaming spend to provide a complete picture of player value.

Succeeding in iPoker . . . .108 Receiving regulatory approval for internet poker is just the first step. Here are 10 steps to a successful online poker operation.

By Rodric J. Bradford

By Marco Valerio

The Agenda

Dateline

Nutshell

132

Cutting Edge

134

Frankly Speaking

136

Goods & Services

144

People

148

Casino Communications With Jamie Odell, CEO, Aristocrat Leisure Ltd.

iGNA Outlook Reality Check . . . . . . . . . . .114 Kimberly Arnold

iGames News Roundup . .116

OCTOBER 2014 www.ggbmagazine.com

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THE AGENDA

Family Affair

Vol. 13 • No. 10 • October 2014 Roger Gros, Publisher | rgros@ggbmagazine.com Frank Legato, Editor | flegato@ggbmagazine.com Monica Cooley, Art Director | cooley7@sunflower.com

Roger Gros, Publisher

he recent closings of casinos in Atlantic City and elsewhere made me recall the camaraderie that you feel when you work in any casino. While I’m sure all jobs—retail, food and beverage, service, manufacturing, whatever—contain some kind of closeness and kinship, casinos seem to ramp it up to the next level. There are so many disciplines in a casino, so many unusual customers, and frankly, so many different goals of each department, that a casino is like a living, breathing organism. I worked for three casinos in my days in Atlantic City—Caesars, the Golden Nugget and Showboat—and each one of them had a different vibe. I was an original dealer at Caesars in 1979. Very few of us had any casino experience, so we were all newbies. We were learning something new every day. Our “guides” were old-line Las Vegas gaming veterans whose idea of customer service was to get a player an extra drink. It took us a while to understand what it was all about, but when you were working nine- or 10-hour shifts, six days a week, you got up to speed before too long. We had a “dealer’s council” at Caesars, which was something they never did in Vegas. We’d ask questions like “Can we grow a mustache?” The answer from the casino manager was “Yes, you can, when you see me wearing a mustache.” The council wasn’t very productive. But it was an exciting time, lots of bonding, making lifelong friends. It was different at the Golden Nugget. I was coming into an established situation in the most successful casino in town. And as a competent baccarat dealer, I was accepted quickly, and learned the pride of working for Steve Wynn and the standards he set. We dealt to the highest of high rollers, did it with style and panache, and earned a great living. When the Golden Nugget became Bally and the Atlantic City Hilton, and finally the Atlantic Club, many of those high rollers departed, but the family feel that employees brought to the tables never completely evaporated. And as an original dealer at Showboat, I was a bit jaded. I was one of just a few dealers with experience (being lured to Showboat by a former Golden Nugget executive with a promise of a quick promotion to supervisor). As such, I was required

Global Gaming Business OCTOBER 2014

to squire some of the break-in dealers through their early days, making sure they understood procedures and the process. So I guess I became something of a mentor early on, but it didn’t last long. When the promised promotion never materialized, I set off on my writing career and never looked back (except in my nightmares, where I’m dealing an endless game of blackjack). But every time I walked through any of those casinos, memories came flooding back of fellow employees, cranky customers or peculiar executives. The experiences I developed in those properties serve me to this day. That’s why it’s so sad about the recent closings, but it’s not the end of the world. Anyone with Atlantic City experience is valuable in other gaming jurisdictions. Of course, not every casino employee who lost their job will want to leave Atlantic City. The city, county and state are trying to help people find jobs, but it clearly won’t be in the casino industry since the loss of so many jobs will severely limit the available casino jobs. As I look back, the relationships I developed during my casino days continue to endure. Just last month, I got pinged on LinkedIn by someone I was friends with at Caesars more than 30 years ago and haven’t spoken to since. He’s already retired from the industry, but had a good life working for several casinos during that time (notably outside of Atlantic City). These are the connections you make. How many fellow employees got engaged, married, had kids, went through divorces, bought homes and cars… all the things that make up a full life. Now I run a small company. I have a small circle of fellow employees, and I can talk to any one of them at any time during the day. In a casino, with thousands of employees, you may see someone every day, but not even know their name. And then some work-related event pulls you together and you realize that this person is very talented or extremely effective at their job. And you become friends. So losing a casino job is a lot more than simply losing a paycheck. It’s losing a lifestyle with friends, activities and connections. It’s a tragedy but always remember the good times, and that they can be recreated by furthering your career in another good gaming company.

David Coheen, North American Sales & Marketing Director dcoheen@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 Columnists Kimberly Arnold | Frank Fantini Geoff Freeman | Alina Harris | Rich Sullivan Contributing Editors Mark A. Birtha | Rodric J. Bradford Dave Palermo | Marjorie Preston | Mike Pritchard Robert Rossiello | Marco Valerio

EDITORIAL ADVISORY BOARD Rino Armeni, President, Armeni Enterprises

• Mark A. Birtha, Vice President and General Manager, Fiesta Henderson Casino Hotel

• Julie Brinkerhoff-Jacobs, President, Lifescapes International

• Nicholas Casiello Jr., Shareholder, Fox Rothschild

• Jeffrey Compton, Publisher, CDC E-Reports

• Geoff Freeman, President & CEO, American Gaming Association

• Michael Johnson, Industry Vice President, Global Gaming Expo, Reed Exhibitions

• Dean Macomber, President, Macomber International, Inc.

• Stephen Martino, Director, Maryland Lottery and Gaming Control Agency

• Jim Rafferty, President, Rafferty & Associates

• Thomas Reilly, General Manager, ACSC Product Group Eastern Region Vice President, Bally Systems

• Steven M. Rittvo, President, The Innovation Group

• Katherine Spilde, Executive Director, Sycuan Gaming Institute, San Diego State University

• Ernie Stevens, Jr., Chairman, National Indian Gaming Association

• Roy Student, President, Applied Management Strategies

• David D. Waddell, Partner Regulatory Management Counselors PC Casino Connection International LLC. 921 American Pacific Dr, Suite 304, Henderson, NV 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 2014 Global Gaming Business LLC. Las Vegas, Nev. 89118 GLOBAL GAMING BUSINESS is published monthly by Casino Connection International, LLC. Printed in Nevada, USA. Postmaster: Send Change of Address forms to: 921 American Pacific Dr, Suite 304, Henderson, NV 89014

Official Publication

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AMERICAN GAMING ASSOCIATION

Leading Our Industry at G2E Gaming’s most important meeting will include lots of debate and discussion By Geoff Freeman, President & CEO, American Gaming Association

here is no place better than G2E to display gaming’s broad economic impact and innovative product offerings. As you walk through the show floor, or attend an educational session at G2E, it will be hard not to think about how quickly our industry is evolving and how creativity and ingenuity are constantly driving us forward. The AGA’s new and updated features at this year’s G2E are no exception.

SPOTLIGHT ON GAMING’S MOST IMPORTANT ISSUES Specific AGA programming will cover the pressing issues facing our industry today and the trends that will impact us in the future. Some of these educational sessions and announcements include: • Efficiencies in Regulation: Firsthand Case Studies

In 2011, the American Gaming Association identified and suggested areas where gaming regulations could be improved to streamline processes both for regulators and the industry at large without jeopardizing the integrity of gaming oversight, which is central to modern gaming. Join a panel discussion, including the AGA’s own Andrew Smith, senior director of research, and forwardthinking current and former regulators as they share their stories of adopting and adapting of the AGA’s recommendations and other novel ways that regulators have spearheaded change. • Proactive Progress: The Establishment of Industry Best Practices for Bank Secrecy Act Compliance

Through an AGA member-led task force, we have made great progress with the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) and have taken the lead in establishing best practices for industry compliance with the Bank Secrecy Act’s anti-money laundering (AML) requirements. At this year’s G2E, Whitaker Askew, AGA’s vice president of government relations, will lead a panel of experts in an industry-side look at the most critical aspects of AML compliance and prevention. 8

• Advancing Advocacy: Get to Know Gaming

The AGA has launched a multi-year public affairs campaign called “Get to Know Gaming” to promote the value of our industry, combat outdated stereotypes and pave the way for innovation. Sara Rayme, AGA’s senior vice president of public affairs, will share information about the AGA’s research to support this effort and lead a panel discussion that explores firsthand examples of engagement, whether in its infancy—what’s happening in Massachusetts and Japan—or in established markets that are evolving— like Atlantic City and Delaware. Additionally, at G2E 2014, I am pleased to be releasing the national results of a groundbreaking study produced in partnership with Oxford Economics on the economic impact of gaming in its totality. This research will fundamentally shift the way in which we calculate our industry’s economic impact and strengthen our industry’s message for years to come. • Deeper Understanding of the AGA’s Strategic Priorities

The AGA’s booth will provide a forum to discuss our strategic initiatives, including the unveiling of a new, resourceful tool that enables better navigation of gaming’s regulations. We look forward to engaging with our industry partners and AGA members face to face at G2E. • Increase Media Awareness

The new AGA press stage at G2E will bring opportunities to raise gaming’s profile that have never before been available before. Through a new broadcast media riser on the show floor, as well as increased participation and attendance of national media outlets, we will fully capitalize on showcasing our industry’s innovative products, services and employees through G2E.

AGA Events at G2E In addition to our increased media efforts, new booth at the expo center and AGA-specific programming during conference sessions, AGA team members are pleased to lead events that allow our industry to connect and network off the floor, including:

Global Gaming Business OCTOBER 2014

• Communications Awards: The AGA Communications Awards program recognizes outstanding marketing, advertising and corporate communications in the gaming-entertainment industry. Effective communications with customers, shareholders, members of the media and the general public are crucial to the success of our industry. This year’s award winners will be announced during a luncheon on Wednesday, October 1. • 26th Annual Gaming Hall of Fame: The Gaming Hall of Fame Charity Gala honors achievements in industry leadership and entertainment. Held in conjunction with G2E, the event will take place on Monday, September 29. Induction into the Gaming Hall of Fame is the highest honor accorded by the gaming-entertainment industry. This year we are proud to honor industry legends Bob Faiss (posthumously), gaming law expert, Lionel Sawyer & Collins; Jan Jones Blackhurst, executive vice president of communications, government relations and corporate responsibilities, Caesars Entertainment; Patricia Becker, first female member, Nevada Gaming Control Board; and Ernest L. Stevens, Jr., chairman, National Indian Gaming Association. • Global Gaming Women: Global Gaming Women (GGW) supports the development and success of gaming women through education, mentorship and networking opportunities. This year, GGW will have a full day of programming on Monday, September 29 as well as networking events such as the Kick Up Your Heels reception and GGW Networking Breakfast. The gaming industry is an important part of the U.S. economy, creating job opportunities, driving economic development and spurring innovation. There are numerous business opportunities everywhere at G2E in networking events, conference sessions and meetings. As you discover the new approach to G2E, take time to think about what you gain—the industry knowledge, connections and business skills—and use it to improve your gaming career as well as our industry. I look forward to all of the new offerings at G2E 2014 and experiencing them with you.

ADVERTISING IS NOW A SKILL GAME. In today’s increasingly complex and competitive gaming landscape, your brand must operate with greater intelligence than ever. That’s where we come in. As a full-service agency that focuses solely on casino brands, our team combines strategic thinking, imagination, logistics and technology to help you outsmart the competition. It’s something that comes with the territory of doing what you love. After all, we’re gamers at heart. And we want to help you win a little game called advertising.

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DATELINE ASIA october2014

Domestic tranquility

Vietnamese citizens will be permitted to gamble in nation’s casinos

Vietnam Prime Minister Nguyen Tan Dung

ietnam’s Ministry of Finance is soliciting feedback from government ministries and the private sector on the draft of new gaming regulations that propose allowing the country’s citizens to enter and gamble in casinos for the first time. The draft contains a provision for allowing citizens age 21 or over to enter casinos subject to conditions that have yet to be fully spelled out, but which would require that they meet certain personal financial criteria. Thanh Nien Daily said the decree has been submitted for approval to Prime Minister Nguyen Tan Dung, who also will select which casinos will be eligible. Gamblers will be required to present docu-

Seoul Survivor

ments proving they are eligible before entering a gaming venue, according to the draft. These documents will include identity cards in the case of locals and passports and visas for foreigners and overseas Vietnamese. It is possible domestic players also will have to pay a Singapore-style entry fee. Currently, the country’s seven casinos are open only to foreign-passport holders, and various attempts over the last several years to modify the restriction have been unsuccessful in the face of political opposition. The Vietnamese are passionate gamblers, and thousands flock every day to the casino at NagaWorld in Phnom Penh and to smaller casinos along the Cambodian border, an exodus from which Vietnam derives no taxes or economic benefits. The Communist ruling party, however, has always been ambivalent about the industry, and the country’s first casino, the Do Son, didn’t open until 1996 as part of a pilot program in the northern province of Hai Phong. Quang Ninh, another northern province, has two casinos, in Mong Cai City and Bai Chay. Bac Ninh, Lao Cai, Da Nang and Ba Ria-Vung Tau provinces each have a casino.

Something Fishy

LVS likes South Korea casino site

MGM eyes Tokyo’s fish market for possible casino site

top executive with casino giant Las Vegas Sands says the company is interested in building in South Korea if the country moderates its prohibition on domestic access. The government of Asia’s fourth-largest economy is easing investment requirements to boost LVS executive George Tanasijevich tourism and attract investment, and George Tanasijevich, the managing director of global development for LVS, said, “We think it is a top development opportunity for our industry, for our company, and we are very eager to find an opportunity to contribute in Korea in an appropriate manner.” Tanasijevich said the company has recently proposed to the Seoul government construction of “a truly iconic building” in the affluent suburb of Jamsil, the site of the 1988 Olympic Games main stadium and the 123-story Lotte World Tower currently under construction. “What we are looking for is a location that can support our business model,” said Tanasijevich, who also is chief executive of LVS’ Marina Bay Sands, the $5 billion Singapore mega-resort that emerging Asian casino markets are looking to as their model. South Korea is not one of those, as it is already home to 17 casinos, a market good for US$2.7 billion in revenue last year. But only one, Kangwon Land in the remote northeast of the country, is open to Korean nationals. Tanasijevich said that would have to change for LVS to invest. “A casino that allows local residents would be a necessary element for our business model, in the scale of the investment that we are proposing to make and the magnitude of the property that we would look to develop in the market,” he said, without elaborating on the details of the investment proposal.

GM Resorts International is considering central Tokyo’s Tsukiji market as a possible site for a destination resort if the government legalizes casinos. It’s reported that CEO James Murren visited the district to survey the sprawling warren of fish stalls there on about 231,000 square meters of land the city may sell after its vendors relocate. It would be one of the largest parcels ever offered for redevelopment in the Japanese capital, and though its land costs would be higher, it’s gifted with an ideal location near the luxury shopping enclave of Ginza and readily accessible by mass transit. CLSA analyst Jay Defibaugh said Tsukiji could be an alternative to the Odaiba district that is seen as the top contender for a gaming resort even though land prices in the Tsukiji area cost about JPY1.39 million per square meter (US$13,400), while the cost of property in Odaiba, on reclaimed land in Tokyo Bay, is about JPY956,000 per square meter ($9,200), according to the land ministry. “Tsukiji, in terms of accessibility, is almost unrivaled in Tokyo,” Defibaugh said, and even with the higher costs, casino operators would find the site “very appealing.” The fish market draws 42,000 visitors daily, many of whom come to see the early Tokyo’s Tsukiji district morning auctions where JPY420 billion worth of seafood, including some of the world’s most expensive tuna, is sold each year. The eating stalls around the almost 80-year-old covered market are popular destinations for freshly caught sushi breakfasts. The Tokyo government decided in 2001 to relocate the market from Tsukiji to a less cramped facility being built on reclaimed land in Tokyo Bay about four kilometers away. The move has been delayed in part because of toxic soil that needs to be removed from the new site.

Global Gaming Business OCTOBER 2014

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DATELINE USA october2014

SLS LaS VegaS OpenS

Former Sahara took 18 months to renovate

guest list of “over 3,000 VIPs, celebs, political figures, media and influencers” attended the grand opening of SLS Las Vegas in late August. All 1,600 hotel rooms were reportedly booked at the glitzy new property on the northern end of the Las Vegas Strip. Servers expected to pour 25,000 cocktails and more than 12,000 glasses of champagne. And fireworks were set to cap the evening’s festivities. The $415 million SLS Las Vegas was developed by sbe entertainment, a Los Angeles-based hospitality group spearheaded by 39-year-old hotelier Sam Nazarian. SLS was built around the core of the former Sahara, former hangout of the Rat Pack, Elvis Presley, Marilyn Monroe and even the Beatles. It took 18 months to transform the aging 59-year-old property into the hottest spot in town. The property was bought by Stockbridge Real Estate Holdings, a San Francisco-based private equity firm operated by Terry Fancher, in 2006. Sam Nazarian, who had made a name for himself by opening several trendy nightclubs, first

Lucky Streak Horseshoe Baltimore opens

Dignataries gather to launch Horseshoe Baltimore

ong lines of gamblers jostled for position on August 26 to be the first to glimpse Maryland’s fifth casino, as the $442 million Horseshoe Casino Baltimore staged a star-studded grand opening celebration. The opening night festivities began with a special gathering for dignitaries in the casino’s outdoor entertainment plaza and included remarks from Maryland Governor Martin O’Malley and Baltimore Mayor Stephanie Rawlings-Blake. There were vertical dance performances by Bandaloop, pyrotechnics and music. O’Malley and other dignitaries gathered outdoors to pull a giant slot machine handle to launch fireworks and unfurl banners depicting major events in Baltimore history. “Baltimore. It’s your lucky day,” each of the five banners read. Horseshoe Baltimore’s 122,000-square-foot gaming floor includes more than 2,500 slots, 100 table games, a World Series of Poker poker room and a variety of nightlife options. More than half of the 1,700 employees of Horseshoe are from the greater Baltimore area. “In order for this to really work, Baltimore city residents have to benefit by getting these jobs,” said Rawlings-Blake at the opening news conference.

CLARION CLOSES

The former Debbie Reynolds hotel done after 44 years Reynolds bought it in 1992 and renamed it the Debbie Reynolds Hollywood Hotel, where she showcased her extensive collection of movie memorabilia.

in Los Angeles and later in Las Vegas, had an idea for a hotel casino project. Stockbridge ran the property until it became “no longer economically viable.” When Fancher closed the property in 2011, he left a note hanging on the door: “Be back soon!” “A lot of people counted out Las Vegas as a city,” Nazarian said recently. “A lot of people counted us out.” Stockbridge owns 90 percent of the hotel-casino, with Nazarian’s sbe entertainment holding a 10 percent non-voting share.

A Trump-less Atlantic City? Three casinos close within two weeks, with the Taj Mahal to follow

tlantic City’s Boardwalk got notably dimmer this Labor Day Weekend as two casinos—the Showboat and Revel casino hotels—closed their doors. A third casino—Trump Plaza—closed September 16, costing the resort more than 6,000 jobs in total. But all that was expected and announced months ago. What shocked the industry and the city was word that Trump Taj Mahal would also close down. Trump Entertainment Resorts, which still operates the Taj Mahal in the city, filed for bankruptcy protection for that casino in early September and send out WARN notices to its 2,825 employees on September 9 saying the casino could close down within 60 days. Trump Entertainment Resorts has more than $280 million in debt secured by the two Trump casino hotels—Trump Plaza and the Taj—according to a recent filing with state regulators, with assets of less than $50,000.

Trump Taj Mahal also indicated in a quarterly report released in August that a restructuring could be on the horizon. The company said “significant revenue increases and improvements in its operating results” are needed. According to another report in the New York Post, there was hope that Carl Icahn, who owns much of the Trump Entertainment debt and mortgages on both Trump properties, would agree to convert that debt into equity and keep the casino out of bankruptcy, but that hope has faded.

The Clarion as the Debbie Reynolds hotel

OCTOBER 2014 www.ggbmagazine.com

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DATELINE GLOBAL october2014 Crown Resorts’ Melbourne flagship

Chinese invasion

Caribbean investment plans $1B resort

hinese investors are planning to spend more than $1 billion on the development of the Caribbean’s biggest casino, to be called Singulari. The 1,600-acre property in Antigua and Barbuda would reportedly create 1,000 jobs for people in the economically challenged nation. Singulari would be 50 percent larger than the Baha Mar resort now under construction in the Bahamas. It would occupy 900 acres in northern Antigua and 700 additional acres in the surrounding islands, and would include several hotels, hundreds of private homes, a school, a hospital, marinas, golf courses, an entertainment district, and a horse track. “Singulari will provide Antigua and Barbuda with an economic boost and galvanize the destination as a tourism force to be reckoned with,” said Sam Dyson of Luxury Locations, the real estate agency that brought

Victoria Windfall Crown’s Melbourne license renewed

Beijing-based Yida International Investment Group to the island in May 2013 and negotiated the land deal. “Over the next 10 years, Yida Group and its global partners will create an additional $2 billion of gross domestic product and economic value to Antigua, including sales of real estate, creation of new industries and origination of foreign direct investment,” he added. Antiguan Prime Minister Gaston Browne signed a memorandum of agreement with the developers on June 13, one day after taking office following June’s general election.

Track This Nova Scotia drops mandatory play tracking

AND THEN THERE WERE TWO The now-defunct “My Play” card

ova Scotia’s provincial government announced it will switch the My-Play System from mandatory to voluntary, and started disabling certain aspects of the technology altogether on September 8. Designed to prevent non-problem gamblers from becoming addicted to video lottery terminals, the My-Play System was installed on Nova Scotia VLTs in April 2012. But, said Andrew Younger, the minister responsible for Part I of the Gaming Control Act, “while the MyPlay System may have been a reasonable attempt to improve responsible gaming features on VLTs, in the end, it did not reduce play by people with gambling addictions, and in fact, the vast majority of play sessions didn’t even use the main features of the product,” Younger said. Developed by Cape Breton-based Techlink Entertainment, the card-based My-Play System gives players information about their current and past VLT activity, and lets them set a spending and/or time limit and stop play immediately. Younger noted, “In addition to providing responsible gambling programs and being mindful of people with gambling addictions, we must also be mindful of public dollars. We have reached the conclusion that, given the system does not work as intended, further spending of public dollars on it is not reasonable.” The total cost of the My-Play System was $19.5 million, including $13.1 million for capital costs and the remainder on development and operation of the system, said Nova Scotia Provincial Lotteries and Casino Corporation spokeswoman Stacy O’Rourke.

ames Packer’s Crown Melbourne has received a license extension until 2050 from the government of the state of Victoria, an approval that also will allow the Crown Resorts flagship to expand its table game and slot machine offering in return for payments of around A$900 million. Opposing politicians and anti-gambling activists have blasted the deal as lacking transparency. But Victoria’s treasurer, Michael O’Brien, said the agreement would support economic investment and jobs. “This agreement provides significant financial benefits,” he said, “as well as improved competitiveness and investment certainty for Crown and the 8,800 people who work there.” Packer, chairman of parent Crown Resorts, was also quick to highlight the potential economic benefits, adding that his company has invested some $2 billion to upgrade the casino but was suffering “a major competitive disadvantage on the issue of taxation.” The state also agreed that a planned “super-tax” will also be removed on all high-rolling VIP players beginning next year. “Now,” Packer said, “with the support of the Victorian government, we will have a license that enables us to compete on a level playing field to help drive tourism, jobs and economic benefit for the state.”

Global Gaming Business OCTOBER 2014

Jamaica whittles down casino applicants

amaica’s minister of finance says a field of five potential casino bidders has been narrowed to just two contenders. Two would-be bidders, Amaterra Jamaica Limited and Fiesta Jamaica Limited, could not pay the $150,000 application fee, and a third candidate pulled Jamaica’s Harmony Cove out of the race. Richard Salm, who has partnered with American Phillips Reynolds, says the Casino Royale Jamaica Limited partnership is out of the running “temporarily” and will “re-enter the fray, bigger and better.” The Jamaica Gleaner reported that Fiesta paid none of the $150,000 bidder’s fee and was disqualified. Celebration Jamaica Development Ltd. and Harmony Cove Ltd. are the only two still in the running. Celebration, led by developer Robert Trotta, hopes to invest $450 million in the first phase of its project to develop 1,000 hotel rooms, a 75,000-square-foot casino and sports book complex, and other amenities including a health club and spa. The resort will be located in Montego Bay. Harmony Cove, a project of the Tavistock Group and Harmonisation Ltd., will be developed on 2,200 acres of land in Trelawny. The first phase will include development of a 1,000-room hotel, a championship golf course and casino facilities. The cost for that phase was last estimated at $900 million.

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DATELINE EUROPE october2014

Tough Sell

Crimea casinos may not be as popular as Putin wants

ussian President Vladimir Crimea,” he said, noting that the Putin has asked the country’s peninsula has “no road connection at parliament to designate the newly all” to the Russian mainland and is far annexed Black Sea peninsula as a from any major city. “gaming zone” where casinos The Kremlin has discussed plans could operate legally. to build a bridge between its new It’s an about-face for Putin, peninsula and the mainland, but that who crusaded against gambling, could take several years—and even calling it a social evil, and who then Crimea remains almost 900 backed legislation that shut down miles from Moscow. What’s more, most of Russia’s casinos and slotGellatly says, prospective investors in machine parlors back in 2009. casinos “are not interested in any The new policy is designed to place that doesn’t have political Russian President make Crimea less reliant on subsi- Vladimir Putin stability.” dies from Moscow. The region is The 2009 ban has restricted casiexpected to run a 55 billion ruble (US$1.5 bilnos to four designated border zones—in Kalinlion) budget deficit this year and may receive ingrad, the Don-Rostov region near the Black Sea some $2.8 billion of emergency subsidies, an ex(site of the sole legal casino in the country, in Azov pense the Russian economy can ill afford. City, about 200 miles northeast of Crimea), the Crimean gambling isn’t likely to produce a Altai region of Central Asia and near Vladivostok on revenue windfall, however. Large-scale casino dethe Pacific coast. velopments need “large, nearby pools of players Russians are avid gamblers, but “Russian high who can travel there,” said Andrew Gellatly, the rollers are more likely to gamble in London or London-based head of global research for GamMonaco than in one of the former Soviet republics,” blingCompliance. “You have nothing like that in Gellatly said.

BARCELONA BOUND

Macau casino tycoon Lawrence Ho

Ho bidding for Spanish casino

company controlled by Macau casino tycoon Lawrence Ho is bidding for a license to operate a casino near Barcelona as part of Catalonia’s planned BCN World resort complex. MelcoLot, a lottery supplier to mainland China controlled by Ho’s Hong Kong-listed Melco International Development, said a wholly owned subsidiary, Instant Glory Holdings, is a shareholder in a company called BCN Integrated Resorts 2, a 50-50 joint venture with Veremonte España, the investment group promoting BCN World. MelcoLot added that it is now engaged with Veremonte in “the preparation and assessment of detailed development proposals and granting of authorizations.” News reports say at least two other major operators, Hard Rock Cafe International and Caesars Entertainment, have submitted bids for casinos in BCN World in partnership with Veremonte, which is proposing.

Global Gaming Business OCTOBER 2014

Media reports said both also are partnering with Veremonte, whose plans for BCN World include casinos, hotels, convention facilities, residential housing and entertainment and leisure attractions with a minimum investment from prospective gaming licensees of €300 million (US$403 million).

Bingo Bargain Gala’s 135 clubs for sale ritain’s Gala Coral Group has hired investment banker Lazard to find a buyer for its 135 bingo clubs as the company looks to clear the decks for a £2 billion-plus IPO of its remaining betting and gaming businesses. Gala, the biggest bingo operator in the country, said it has “commenced a process to explore the possibility of a disposal” of the venues. Analysts expect the sale of Gala Bingo, estimated to be worth more than £250 million, will eventually lead to an initial public offering of the company’s dominant bookmaking business. Gala Coral has more than 1,800 betting shops in Britain, although it said it may close some in response to government plans to raise the tax on electronic table game revenue, the mainstay of betting shop revenues nationwide, to 25 percent. Gala Coral became the latest bookmaker to warn that it will be forced to close shops this year. Both William Hill and Ladbrokes have been closing outlets, blaming it on the increase in tax, which will include a 15 percent point-of-consumption levy on online gambling come December. Racing is another weakness. Gala Coral, which is owned by a consortium of U.S. investors and hedge funds, said the profitability of racing in its betting shops “has halved over the last five years and shows no sign of abating.” The group called for a reduction in the horse racing betting levy, which bookmakers pay to help fund the industry. Gala Coral posted an 18 percent jump in total group pre-tax earnings, to £67.2 million in the latest quarter, which the company attributed to the World Cup and a strong online performance. Earnings at the bingo division improved from £6.6 million to £8.2 million.

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DATELINE TRIBAL october2014

KO by TO

Controversial Arizona casino breaks ground

fter years of legal wrangling, ground finally was broken in Glendale, Arizona for the Tohono O’odham Nation’s $400 million West Valley Resort and Casino. Officials from the tribe and the cities of Glendale, Tolleson and Peoria plus more than 250 guests attended the ceremony. Tribal Chairman Ned Norris Jr. said, “Today is a day that’s been a long time coming. This is the work of generations of the nation’s leaders—the result of a long struggle to turn a great wrong into a new opportunity for our people and for all of Arizona.” He added the casino “is not an expansion of gaming but a fulfillment of our rights that the voters of Arizona approved.” The new casino will create 6,000 construction and 3,000 permanent jobs and is expected to take in more than $300 million annually. The development is on land that the Tohono O’odham received as reparation for flooding caused by the Painted Rock Dam, built on the Gila River in the 1960s. Earlier

this year the U.S. Department of the Interior took the land into trust on behalf of the tribe. Construction is expected to take 16 months. The project survived 14 lawsuits over five years, as well as fierce opposition from former Glendale leaders who spent more than $3 million in legal fees and also were ordered to pay nearly $90,000 in court costs for the Tohono O’odham. Recently, however, current Glendale officials and the tribe finalized an agreement that will provide Glendale with $1.3 million a year for 20 years, including a one-time up-front payment of $500,000. The tribe also will donate $100,000 a year to the Glendale Convention and Visitors Bureau to promote Glendale and the West Valley. The Gila River Indian Community, which owns Wild Horse Pass, the sole West Valley casino, along with other eastern Arizona tribes, spent millions of dollars lobbying federal lawmakers to block the project. Tribal leaders continue to claim the Tohono O’odham development violates a tribal agreement. Norris denies that.

Smoke Signals

Navajos concerned about smoking prohibition

errick Watchman, a member of the Navajo Nation and chief executive officer of the Navajo Nation Gaming Enterprise, recently expressed concern about the antismoking movement that’s taking hold throughout the tribe’s reservation. To date, Navajo Nation Chief more than 30 Navajo communities have Executive Officer Derrick Watchman passed resolutions to prohibit smoking in public places, although none of them has impacted the tribe’s casinos in New Mexico and Arizona—yet. Watchman said, “Our position has been that it could be detrimental. There are studies out there that suggest smoking bans really, really impact revenue. And with limited revenue you can only employ so much.” Currently, no other tribes in New Mexico and Arizona have smoking bans at their facilities.

Global Gaming Business OCTOBER 2014

Leaders of the Tohono O’odham Nation, Arizona officials and other tribal representatives break ground for the tribe’s Glendale casino

SINKING PEQUOTS Foxwoods on brink of default

he combination of increased gaming competition, the reluctance of consumers to spend, and the burden of debt covenants that were signed when the economy was in better shape means the Mashantucket Pequot tribe of Connecticut may default on some interest payments. Standard & Poor’s last month lowered its rating for the tribe, which reportedly has been selling off land near its reservation in the southeastern part of the Constitution State. And the tribe has begun discussions with senior lenders over what it calls “failure to comply with certain financial covenants” related to the mammoth Foxwoods Casino Resort, the Associated Press reported. In 2007, Foxwoods and Connecticut’s second tribal casino, Mohegan Sun, added $430 million in combined revenue to state coffers, just 25 percent of their overall slot machine take, the Connecticut Post reported. But competition from racinos in New York state, casinos and slots in Rhode Island, and a recessionary economy have put an end to the gravy train. In fiscal 2014, Connecticut received just $279 million in combined casino revenue, a drop of more than one-third in less than seven years. State Senator Toni Boucher is alarmed by the steep decline. “The state has been reliant on this,” Boucher said. “This is a real problem and it’s heading for a train wreck.” The competition will only grow as New York plans its first of seven commercial casinos and Massachusetts plans three of its own. New Jersey, which once held a monopoly on gaming on the East Coast, has suffered most from the impact of an all-but-saturated market. It has closed three casinos this year, including the giant Revel, which operated only two years, and a fourth was set to close in September. “Connecticut should get used to the current casino revenue levels,” warned Peter Gioia, an economist with the Connecticut Business and Industry Association. “If anyone is planning on an increase, that’s a risky move.” Mitchell Etess, chairman and CEO of Mohegan Sun, blamed the economic climate as much as competition. “People are not comfortable with the economy,” he said. “This is truly disposable and recreational income.” S&P lowered Foxwoods’ corporate rating two grades to CCC- on August 18. The credit rating agency said “meaningful underperformance” could result in inadequate cash flow to cover some interest payments, reported the Worcester Telegram.

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NUTSHELL

“They Macau Chief Executive Fernando Chui Sai On, who was re-elected last month unopposed, issued his policy platform for his second and final five-year term, saying the scale and speed of development of the gaming industry will be curtailed in the interests of a diversified economy. Chui was returned to office by an electoral commission comprised mainly of leading local business interests who are overwhelmingly pro-Beijing. Regarding gaming, he said his next administration will control its growth and extend supervision of it, which will include a review of the license renewals coming due on a staggered basis at the end of the decade. Significantly, he pledged that no imported labor would be hired as dealers, a sore point with local residents, and said casinos will be expected to assume the responsibility of providing housing and transportation for their non-resident workers. MGM Resorts International has agreed to a settlement with the New Jersey Division of Gaming Enforcement stemming from a decade-old case as it seeks to regain its casino license in the state. The settlement between MGM Resorts, Los Angeles-based Tracinda Corp. and the New Jersey Division of Gaming Enforcement was made in July and recently announced by the company. The settlement covers a case involving Los Angeles attorney Terry Christensen, a former MGM board member and a legal confidant to MGM founder Kirk Kerkorian. According to the DGE, MGM consulted with Christensen on company matters following the lawyer’s 2006 resignation from the company’s board and after a criminal conviction. MGM Resorts agreed to pay $150,000 while Tracinda will pay $75,000 in lieu of a formal complaint being filed by the DGE. Five companies are bidding for a license to operate a casino in the English city of Southampton with 30 table games and 150 machine games. Grosvenor, Kymeira Casino, Genting Casinos U.K., Global Gaming Ventures and Aspers all have submitted proposals. A decision is expected next year. Fiji’s first casino has opened at Aggie Greys Mulifanua Resort in partnership with Indo Pacific Gaming International. The property is the first of two the government of the South Pacific island has authorized. The Viejas Band of Kumeyaay Indians of San Diego County, California, owners

of the Viejas Casino and Resort, are proposing to expand their hotel and casino. The Viejas casino has 2,000 slot machines. The hotel has 128 rooms. Under the expansion proposal it would double in size. The County Board of Supervisors will study the proposal on September 24, although its consent is not required. However, it is allowed to propose what environmental mitigation would be required as part of the tribe’s compact with the state. James Packer’s Crown Resorts has acquired co-owner Betfair Group’s 50 percent stake in Betfair Australasia for $10 million and taken over full ownership of company. U.K.-based Betfair Group will continue to provide technology and support services to the unit. Betfair Australasia was established in 2004 as a joint venture between Crown and Betfair Group. The Viejas Band of Kumeyaay Indians, in San Diego County, facing a financial death spiral, has renegotiated its 2004 gaming compact with California Governor Jerry Brown to get lower payments. The financial picture has changed drastically since 10 years ago, when the compact was negotiated by then-Governor Arnold Schwarzenegger, the tribe said in a statement. The old compact required the tribe to pay $17.4 million annually to the state. That has been replaced by a percentage formula that will cut the amount the tribe pays by up to $5 million, by some estimates. The parent company of Delaware’s Dover Downs racino announced a new bank deal to refinance $60 million in credit that was set to expire last month. The new deal gives Dover Downs Gaming & Entertainment Inc. a year of breathing room to continue operations without laying employees off, while it attempts to improve its financial situation. “The good news is the proverbial gun is not at our head today,” Denis L. McGlynn, CEO of Dover Downs Gaming, told Delaware’s News Journal. “The concerns we had about ‘are we going to have to lay off people to pay (the debt)’—we think that’s off the table for the period of the term of the loan… We have sort of stabilized the patient for the next 12 to 14 months.” Dover Downs, the state’s only publicly traded casino company, has been at the forefront of efforts to persuade state lawmakers to lower taxes and fees on the gaming facilities to compensate for losses due to increased competition.

CALENDAR September 30-October 2: Global Gaming Expo 2014, Sands Expo & Convention Center, Las Vegas. Produced by Reed Exhibitions and the American Gaming Association. For more information, visit globalgamingexpo.com. October 20-21: Balkan Entertainment and Gaming Expo 2014, Inter Expo Center, Sofia, Bulgaria. For more information, visit balkangamingexpo.com.

October 27-29: International Association of Gaming Advisors Annual Conference and IAGR Conference, Marriott Philadelphia Downtown, Philadelphia, Pennsylvania. Produced by IAGA and IAGR. For more information, visit iagr.org/philadelphia-2014.

November 5-7: IMGL 2014 Autumn Conference, Florence, Italy. Produced by the International Masters of Gaming Law. For more information, visit gaminglawmasters.com.

November 11-12: Malta iGaming Seminar, Hilton Malta, St. Julians, Malta. Produced by the Pentasia Group. For more information, visit MaltaiGamingSeminar.com.

November 5-6: Arizona Indian Gaming Association Expo 2014, Fort McDowell Hotel & Casino, Scottsdale, Arizona. Produced by AIGA. For more information, visit azindiangaming.org.

November 10-11: Florida Gaming Congress, Hyatt Regency, Miami. Produced by Spectrum Gaming. For more information, visit floridagamingcongress.com.

November 12-14: CDC Slot Leadership Program, UNLV International Gaming Institute, Las Vegas. Produced by CDC Gaming Seminars. For more information, visit CDCGamingSeminars.com.

Said It”

“We’re losing revenue every day because people are going to those casinos to play. They now go to New Jersey, they go to Connecticut. Why don’t we bring them to upstate New York?” —Andrew Cuomo, governor of New York, pitching his casino referendum in 2013

“He’s 15 years too late to the party.” —Harold L. Vogel, gaming analyst, who says New York Governor Andrew Cuomo shouldn’t expect riches from Empire State casinos

“The shiny new objects attract all of us as customers. The question is what happens when the ‘grand opening’ sign is taken down.” —Geoff Freeman, American Gaming Association, on the maturation and possible saturation of the U.S. gaming market

“There’s going to be a divide-and-conquer strategy, just like they did with this unsecured deal. Everyone who didn’t do it is left in the dust.” —Analyst Mark Heiman of Saguaro Capital Advisors LLC, on Caesars Entertainment’s strategy of negotiating to refinance debt with senior bondholders to the detriment of second-lien bondholders as the operator approaches restructuring

“No state has ever repealed expanded gaming legislation since the modern industry of gambling started in 1931 with Nevada.” —Clyde W. Barrow, gaming expert based at the University of Texas-Pan American, commenting on the possibility of Massachusetts’ voters repealing the 2011 Expanded Gaming Act

“As a matter fact, I’ve been thinking I made a mistake when I told the mob to stay out of Atlantic City. They know how to run casinos.” —Brendan Byrne, former New Jersey Governor who oversaw the legalization of gambling in Atlantic City

“We’ll make our own decision. They have said they are not interested in participating in the process we have set up to give them a role in making that decision, so we’ll do it.” —James McHugh, acting chairman of the Massachusetts Gaming Commission, commenting on the panel’s decision to remove Boston as a “surrounding community,” for the proposed Wynn casino development in Everett, due to the city’s refusal to negotiate with Wynn

OCTOBER 2014 www.ggbmagazine.com

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FANTINI’S FINANCE

The Big Mo High-flying Macau operations have plenty of upside in a downturn

omentum, by definition, is hard to break. We repeatedly see stocks that continue to climb after they have surpassed their fundamentals simply because they have momentum, and it is difficult for investors to separate themselves from the bullish spirit. Likewise, there is downward momentum and, even as the numbers suggest stocks have become cheap again, it is hard for investors to run contrary to the trend. When momentum does break and stocks go into reverse, it can be harder still to stop the new momentum as it races past the fundamentals in the opposite direction. Thus it has been with Macau. Just months ago, Las Vegas Sands and Wynn Resorts were hitting new highs as investors were told that the future is almost unlimited. Even with the rise of competing markets in Asia, Macau had penetrated just a fraction of the growing Chinese market, investors were told. And when reasons ran out for justifying higher prices on even the most optimistic scenarios, new reasons were found. Then, Macau growth slowed. No problem. It would resume. The World Cup would end and remove its distraction from gamblers. China remained underpenetrated, investors were told. Then revenues actually fell year-over-year for three straight months, and sequential growth moving through the summer was lower than historically true. All of a sudden, that momentum, which was so irresistible, stopped and reversed. Nearly as suddenly, all the issues pooh-poohed before had taken on significance: • Tightening Chinese credit that could crimp junket operators. • Chinese corruption crackdown also crimping VIP play. • Rise of the same regional casino markets that had been dismissed before. • Rising wage pressures that could force labor costs to rise double-digits for a while to come. • Smoking is soon to be banned from the mass-market casino floor. Even those bulls who see just a lull in growth until the new mega-resorts start opening next year 18

By Frank Fantini

might ask whether the huge new capacity represents the next growth wave or possible cannibalization. The result: stocks slipped, then fled lower, and finally were routed. As of this writing, Las Vegas Sands is down 29 percent from its 52-week high. Wynn is off 26 percent. Melco Crown 39 percent. MGM Resorts, the last of the four U.S.-listed Macau operators, declined just 17 percent, but MGM is a different case. Rebounding Las Vegas is a much bigger part of its business. Macau is a much smaller part than for the others. And the debt-laden company has been improving its balance sheet materially. So, the questions arise, are these stocks now cheap, and is the downward momentum pushing them into bargain territory? As in any good debate, bulls and bears can both make good arguments. We’ll side with those who say Macau can continue to grow. The infrastructure improvements to deliver people to the market are real. The development of adjacent Hengqin Island into a national Chinese tourism destination is real. There are signs that Macau is capacity-constrained, so new capacity can grow the market. But we also think the days of break-neck growth could be over. New regional competition is real, as demonstrated by junket operators already taking customers to lower-tax markets such as Philippines and Cambodia where they can earn higher commissions. Russia, Australia, Korea, Vietnam and maybe Japan will be formidable and should not be dismissed, certainly not in their aggregate. Macau wage pressures will raise expenses. The Macau government can be expected to extract concessions from license renewal negotiations that could begin as early as next year. And all of that expansion in Macau—4,300 tables and more than 13,000 hotel rooms on Cotai alone— will have to be absorbed, though the Macau government might force the casinos to pace their growth. So, back to the question: Are the U.S.-listed Macau operators cheap? The answer is yes, by several measures: relative to their past valuations, given their growth rates even assuming Macau slows, given that each has projects opening over the next two years, and given

Global Gaming Business OCTOBER 2014

their strong cash flow and relatively low debt, except for MGM, whose debt remains high. Look at some of the fundamentals: Price to earnings growth ratios of 1 to 1.5 times is reasonable. If analysts are correct, Wynn is OK at 1.4 times, LVS cheap at just around 1 and MPEL a bargain just under 1. Consider their balance sheets. At $1.9 billion in EBITDA, WYNN could be debt-free in just over two years—even without growth. LVS could be debt-free in just over a year, and MPEL in a matter of months. Of course, they won’t be debt-free so fast as they are spending to build their new projects. However, those projects will provide growth for future debt reduction, higher dividends, share repurchases, or more growth projects. Consider: • WYNN will open its Macau mega-resort in a little over a year, nearly doubling its capacity there. • LVS is still ramping up Cotai Central, will open its 700-room St. Regis hotel tower and has been awarded construction permits for the 3,000room Parisian. • MPEL is building out City of Dreams, will open Studio City in a couple of years, and is going international with Philippine and Russian projects. • MGM will open a Cotai resort, dramatically increasing its capacity. And consider total return. LVS and WYNN are generous dividend payers, and MPEL has just initiated a recurring dividend. Finally, WYNN, LVS and MPEL are run by founding visionaries who have inculcated their values into their organizations. These companies are not going to collapse. None of this means that stock prices won’t go lower. Again, momentum is hard to stop, and there definitely is downward momentum. But the fundamentals, and a reasonable—not Pollyannaish but not overly bearish—outlook for Macau, suggest that if the bottom isn’t at hand, it’s getting near. Frank Fantini is the editor and publisher of Fantini’s Gaming Report. A free 30-day trial subscription is available by calling toll free: 1-866-683-4357 or online at www.gaminginvestments.com.

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The New Word of Mouth When it comes to spreading the word about your property, don’t forget the almost 7 billion mobile subscribers out there.

How to influence social media and mobile marketing

By Marjorie Preston hen the new SLS Las Vegas resort opened in August, it sparked a level of ballyhoo that Sin City hasn’t seen since the gold rush (read: pre-recession) era. The energy ignited by SLS can be attributed in part to a deft social and mobile and dominant from the start (in general, sbe eschews paid advertising). And marketing campaign that talked up the plush new property on multiple digital it was fine-tuned in anticipation of the grand opening. platforms—Facebook, Twitter, Instagram—to a database of about 5 million cus“Over the past year we’ve re-launched all our websites as responsive sites, tomers, mostly in Southern California, where parent company sbe Entertainmeaning they’re mobile-friendly—that’s really a direct reaction to our guests ment has some 60 nightclubs, restaurants and hotels. and their lifestyles,” says Veronica Smiley, sbe’s chief marketing officer and a Unlike established casino companies that have grafted interactive and mobile former corporate VP of brand, advertising and communications for Caesars marketing onto more traditional frameworks, SLS’s digital strategy was intact Entertainment. “Our customers are on the go; they’re not always in front of their desktop, they’re not always making decisions in advance. And when they want to engage with us, we want to make it as easy and fabulous an experience as possible.” More responsive web design—which automatically adapts a website’s content, imagery and resolution to the dimensions of the user’s device— has resulted in “a huge uptick in growth, visitation and bookings” on the SLS site, Smiley reports. “It just makes us hungrier to look at how we can optimize their experience. People run their lives on their phones today; they run their companies on their phones today. So we have to be there.”

Picture This The approach is paying off in more ways than one. Before SLS drew back the velvet rope August 23, the property’s Facebook page had 190,000 “likes.” In the past year, the company overall has experienced a whopping 300 percent growth in Instagram followers, from 25,000 to more than 75,000 and growing, says Smiley. In fact, she adds, when it comes to SLS, Instagram has bested even Facebook and Twitter as the leading consumer-driven marketing vehicle. “Twelve months ago, people were still saying, ‘Who uses Instagram?’ It was just a few people here and there. Now, who’s not on Instagram? In our run-and-go lifestyles, where we don’t have time to retext, a picture will tell the most impactful story in the shortest amount of time. You can take a quick look and fantasize while waiting in line at the supermarket.” The photo- and video-sharing app acquired by Facebook in 2013 has ex20

Global Gaming Business

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“

Now it’s a completely different landscape. Social has been such a strong channel for us, we’re constantly working to engage with the community—looking at the comments they make, responding, regramming (retweeting on Instagram) the fabulous images they send us… It really should not called a campaign any more. It’s a conversation.

”

—Veronica Smiley, Chief Marketing Officer, sbe

perienced hand-over-fist growth, going from 22 million active monthly users to 100 million current active users in a single year. Though it still lags behind Facebook, YouTube, Google+ and other mega-sites, Instagram has become the fastest-growing social media site in the world. “It’s our aunts and our moms, too, not just our cool friends,” says Smiley. “And that’s important to us, because we have to reach a much bigger audience than just a slice of L.A.” With an assist from Instagram users, SLS created buzz in the months before opening through its interactive “Be Legendary” campaign. It not only referenced the property’s past in iconic images (the former Sahara was once home away from home for entertainers like Frank Sinatra, Elvis Presley, the Beatles and Marilyn Monroe), it also invited followers to post their own favorite photos. SLS was “giving a nod to the history of the Sahara but also talking to today’s consumers, who are more interested in a lifestyle and boutique-hotel experience,” observes Jim Gentleman, senior vice president of account management and strategy with SK&G, a Las Vegas advertising and marketing agency. “From a social media standpoint, inviting their fans or followers to upload photos they think are legendary was a way to get them involved with the new campaign.” That in turn added to the drumbeat of expectation about the property. “It’s all about engaging and sharing,” says Gentleman.

The Payoff Engaging and sharing. Ever since digital media conquered the universe, marketers have talked up those feel-good (but slightly slippery) concepts. Their bottom-line value has been hard to quantify—until now. According to a recent study commissioned by the social data company ShareThis and the Paley Center for Media, positive online buzz not only feels good but can have a measurable effect on a business’ bottom line. Weighing the impact of social sharing on Facebook, Twitter, Pinterest, LinkedIn, Yelp and other networks, the study showed that good reviews can boost the perceived value of a product or service by an average of 9.5 percent. Conversely, online thumbs-down can reduce the likelihood consumers will use a product or service by as much as 11 percent. “It is incredibly meaningful when you think about what’s the most impactful way to get you to try a new restaurant or check out a new hotel,” says Smiley. “Is it a print ad or is it someone who tells you, ‘I just had a fabulous dish,

and here’s a picture of it?’ It’s not rocket science. It’s great to provide paid media to get the conversation started, but the biggest impact is when people feel empowered to recommend you and tell friends, hopefully in a positive way.” Collectively, social media has given consumers a level of influence unheard of in the pre-digital era. When they’re happy, they can become a property’s best brand ambassadors. “Back in the day we used ‘push’ campaigns, running TV ads or press ads or billboards to push a message out to the audience,” says Smiley. “Now it’s a completely different landscape. Social has been such a strong channel for us, we’re constantly working to engage with the community—looking at the comments they make, responding, regramming (retweeting on Instagram) the fabulous images they send us… It really should not called a campaign any more. It’s a conversation.”

The Softer Sell And that conversation had better do more than pitch, says Gentleman. “Ultimately with social media and mobile media, you have to create content that people will share with their own networks,” he explains. “Giving them a chance to contribute or participate or win something of value or learn something relevant puts you way ahead of the game. A little promotion is fine as long as that’s not all you’re doing with your social media feed.” Too much sell, he says, “and they’ll tune you out.” Which social media platform predominates, and do casinos use them differently to reach different groups of people? “Facebook is still the 800-pound gorilla of the social media world, with over 1.32 billion monthly active users,” says Ryan Leeds, vice president of strategy at Masterminds, an East Coast advertising agency. “Twitter is great for realtime news, event updates and deals. Pinterest is best for featuring non-gaming content such food and beverage, travel tips and info, humor and weddings. Instagram is a great option for casinos that have options for a younger demo, like nightlife”—the demographic targeted by SLS. Marketing expert Jamie Turner, author of How to Make Money with Social Media, recently posted a list of the 52 top platforms “every marketer should know.” They’re divided into three categories: platforms that help people network (LinkedIn, Facebook, etc.); platforms that help them promote (YouTube, blogs, etc.); and platforms that help them share (Hootsuite, for example). From Bing to XING, from MyLife to MySpace, from Vox to Vanila to OCTOBER 2014 www.ggbmagazine.com

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“

It’s always good to test out new platforms as they come up, but only if you have the resources to really do a good job. It’s much better to stick to a couple social networks—whatever is manageable for your team—and do them well.

”

—Ryan Leeds, VP of Strategy, Masterminds

Reddit, Delicious and Drupal, the list is expanding. The temptation may be to jump aboard all of these sites; Leeds says avoid it. “It’s always good to test out new platforms as they come up, but only if you have the resources to really do a good job,” says Leeds. “It’s much better to stick to a couple social networks—whatever is manageable for your team—and do them well.” Smiley agrees. “My philosophy has always been if you’re going to be there, do it well. Have a plan. People don’t really have time for content or communications that aren’t quality. If you’re there just to be there it’s a waste of brand.”

The Extra Mile Now, back to that conversation between a company and its customers. It goes without saying that good dialogue has to be two-way, with occasional pauses and built-in response time. In simple terms, it pays to shut up and listen. HubSpot cofounder Brian Halligan has called it the “megaphone versus hub analogy.” When companies utilize their websites and social media as nothing more than broadcast channels, they forget about “actual humans on the other side of the screen.” Thinking in terms of an authentic, thoughtful, oneto-one conversation “helps you improve the content you deliver, the design you create, and the calls to action you employ,” Halligan says. Though a company may have dozens or hundreds of representatives ready to field online complaints or answer questions, ideally any communication should feel like a one-to-one exchange between human beings. Because it always is. That said, those representatives must adopt and maintain the brand voice and reflect an identity that’s consistent and congruous. Gaming companies are “literally creating guidelines in terms of the kind of vocabulary, the process, the procedure their people use when issues come up, to be true to their brand,” says Gentleman. “If you represent the Borgata in Atlantic City, that brand tends to be playful, entertaining, with a quality element. It may be a little different from how Aria and Bellagio speak to their customers. You cannot speak as yourself. You need to speak as the brand.” It’s been said that customer service is the new marketing—and good customer service is certainly the best marketing. According to research from the U.S. Office of Consumer Affairs, a dissatisfied customer will tell between nine and 15 people about his or her experience; and about 13 percent of dissatisfied customers will tell more than 20 people. But resolve a disgruntled customer’s problem, and that person will also spread the word—telling four to six people, but this time, with enthusiasm. (And by the way, it takes an average of 12 positive experiences to make up for one unresolved negative experience.) “Companies like MGM or Caesars have growing departments of digital so22

Global Gaming Business OCTOBER 2014

Rules of Engagement How much is too much and what really works? yan Leeds, vice president of strategy at Masterminds, typically recommends posting online content regularly, once per day as a general rule, more often if you have something to say. “For instance, if you have an exciting event coming up, you may want to live-Tweet about it, which could mean posting multiple times an hour. Conversely, you may not have much going on, and may consider skipping a day rather than trying to force content. Testing different frequencies and finding out what schedule works best for your property is always the best way to go.” Contests and giveaways “should always support a relevant business goal,” and should involve more than a simple sign-up, says Leeds. In other words, make it fun and shareable. “If your goal is to educate fans about an on-property car giveaway, consider asking them to share what their custom license plate would be or explain why they need a new car, and award entries into the on-property drawing to people who participate. This gets them thinking and dreaming about the prize and gets them invested in the promotion. Just keep in mind that the more work it takes to enter, the fewer people will participate.” Gentleman suggests engaging customers by posting a favorite chef’s recipe, or a YouTube interview with an artist who’s coming to your concert venue. “Or it could be a contest or giveaway that will award someone a trip or a weekend stay at your property.” But the social media phenomenon that tends to reap the most clicks-to-conversions are lists, he says: “Top 10 things to do this season, top 10 favorite foods.” Quizzes, too, are a surefire way to get people playing your game. “It’s human nature; people like to test themselves to see how smart they are,” says Gentleman. But online tests of intelligence or trivia are not all play. They’re also business, and a smart way to gather data. The next time you find yourself taking an online IQ test or a quiz to find out if you’re Betty or Veronica from the Archie comics, “You can almost bet there’s a marketer in there,” says Gentleman, “gleaning information for a marketing offer down the road.”

cial media folks and that’s what they do—they’re online,” says Gentleman. “If people didn’t enjoy their stay or had problems, they use it as a way to also try to proactively deal with it.” It may sound like housekeeping, but it’s also a marketing message, says Gentleman. It could mark the difference between winning or losing a single customer, who then may help you win or lose a dozen more, and so on. In these famous words from Forbes magazine: “Treat your customers as if they were newspaper reporters”—or the latter-day equivalent, bloggers with Twitter feeds.

LOTTERY + SPIELO + INTERACTIVE + BETTING

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POWER PLAY

Executives of GTECH S.p.A. prepare to marry their worldwide business with that of the world’s largest slot manufacturer

By Frank Legato

he marriage of the lottery industry to the casino industry has been contemplated for decades. Traditional competitors for the gambling dollar, the two forms of gaming were generally viewed as separate and distinct, each following its own business model to grab a piece of the gaming pie. That began to change with the emergence of video lottery terminals—gaming machines similar to slots in most jurisdictions, but owned by a state-sanctioned lottery. Casino-style content even began to appear on that mainstay of the lottery industry, the instant ticket. This year, the convergence of the two industries became very real with the announcement that International Game Technology, the world’s largest manufacturer of casino slots, was to be acquired by GTECH S.p.A., the leading supplier and operator in the worldwide lottery business. GTECH is a name that’s been familiar to state and provincial lotteries since it was co-founded in 1980 by one of the fathers of the modern lottery industry, Guy Snowden, with two other partners. The Rhode Island-based company was the longtime leader in central lottery systems when it was acquired in 2006 by Italian lottery operator Lottomatica, which runs the Italian National Lottery and is majority owned by De Agostini

S.p.A. Today, the renamed GTECH S.p.A. has operations in approximately 100 countries worldwide. The idea of combining that worldwide GTECH business with a supplier from the casino side was nothing new—IGT’s former chairman, Chuck Mathewson, told GGB in August that the slot-maker came very close to acquiring GTECH 12 years ago. This year, it finally happened, albeit the other way around. Renato Ascoli, president of products and services and general manager of GTECH S.p.A., notes that who is acquiring whom is not as important for the future as what each company brings to the combination. “We are bringing together unmatched positions in the marketplace,” Ascoli says. “GTECH is the leader in the global lottery business. IGT is the global leader in the gaming area. In other businesses—social gaming, interactive wagering, sports betting when appropriate—we play a key role, and we have a relevant market share there as well.” Ascoli says IGT and GTECH share one intangible that makes the merger work: market leadership. “IGT is still, and by far, the market leader in supplying gaming equipment to the commercial casino industry,” he says. “The market acknowledges that IGT possesses an unparalleled content

Top GTECH executives include (l. to r.) Renato Ascoli, president of products and services and general manager; Rachel Barber, chief technology officer; and Victor Duarte, senior vice president of gaming and content and SVP of North American commercial gaming. 24

Global Gaming Business OCTOBER 2014

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“We are bringing together unmatched positions in the marketplace. GTECH is the leader in the global lottery business. IGT is the global leader in the gaming area. In other businesses— social gaming, interactive wagering, sports betting when appropriate—we play a key role, and we have a relevant market share there as well.” —Renato Ascoli President of Products and Services and GM, GTECH S.p.A.

portfolio, and it comes from a large amount of very good games, and also some top-performing brands like Wheel of Fortune, Megabucks and many others. I would say they have clearly demonstrated a capacity to maintain high margins, even when difficult times arise. “We think that IGT has also been very successful in entering a new business segment, social gaming. The acquisition of DoubleDown was not only managed very appropriately, but importantly, the growth they have achieved in social gaming is really extraordinary.” On the other side, Ascoli says, GTECH has maintained a leading role in the global lottery industry through a culture of innovation. “All managers in the

company are constantly focused on innovation,” he says. “The market recognizes this as a clear competitive advantage.” Those innovations have led to leadership in the Italian VLT market, the introduction of sports betting in Greece and, of course, continued prominence in lottery systems and platforms. “The second element GTECH provides to the merger,” says Ascoli, “is the capacity to understand players, and our B2C management skills from our experience in markets like Italy, Latin America, Indiana, and now in New Jersey. This creates a closer and better understanding of player desires and player needs. This private operator experience will bring something new to IGT.” Ascoli adds that the technologies of the two companies are very complementary. “We’re both high-tech companies,” he says, “and the fact GTECH is a selected lottery partner in more than 50 nations, with over a dozen of those in North America, is a clear demonstration of the fact we are state-of-the-art, and ultimately, it reflects our capacity to deliver on our commitments. “This is why we have been able to lead the VLT space in Italy since 2010, and it is why we have been creating a success story with the Spielo gaming business. The gaming segment struggled to break even back in 2008. And as of 2013, this part of GTECH was profiting in excess of $100 million.”

Casino Success The casino side of GTECH’s business is a newer success story, but one that had reached new heights by the time the IGT acquisition was announced. GTECH had successfully absorbed VLT leader Spielo International, which itself had incorporated the games and technology of the former Atronic Group to grow its business in the worldwide casino market. GTECH’s gaming team has been riding high on the success of a popular series of games based on PopCap social games, the decade-old Deal or No Deal licensed game franchise, and the company’s new mega-hit, Sphinx 3D. Sphinx 3D, which has capped a surge in popularity for GTECH’s Spielo product line, introduced the masterful True 3D technology, which, in addition to creating a buzz at last year’s G2E, has fueled earnings for the title that have been three to four times the house average nearly everywhere it has been placed. OCTOBER 2014 www.ggbmagazine.com

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“I’m excited about the opportunity for game summits, where we get our best people in a room, and they critique each other’s content, and offer improved ways to build better and better games. I’m thrilled about the opportunities that are ahead of us.” —Victor Duarte Senior VP of Gaming and Content and SVP of North American Commercial Gaming, GTECH

GTECH Senior Vice President of Gaming and Content and SVP of North American Commercial Gaming Victor Duarte says the success of Sphinx 3D will be duplicated in a variety of other games. “We were definitely proud of the reaction we got to True 3D, and in particular Sphinx 3D, last year at the show,” Duarte says. “Getting show buzz is important— it’s why we go to G2E—but everyone was even more impressed once we started to roll out the product on the floor. Everywhere it’s been installed, it’s a tremendous success. We’re thrilled that the results matched the hype coming out of G2E.” The company will aim to match that success with four new games being launched at this year’s G2E in what will be the True 3D product line, with games designed both for entertainment-style players and the more traditional casino players. One of these new 3D titles, Bejeweled 3D, is a PopCap brand—the company’s most recent success in the licensed game category. An earlier success is its Deal or No Deal series. “Deal or No Deal is a signature brand for us, and has been since I’ve been involved in the gaming business, more than 10 years,” says Duarte. “It’s something we’re very proud of, something we’re associated with, just as IGT is associated with Wheel of Fortune. And we’ve been thrilled with the performance of our PopCap titles. Zuma and Bejeweled are two of the hit titles on the floor right now.” Duarte says he is looking forward to combining GTECH gaming R&D efforts with those of IGT. “The game studios are highly complementary,” he says. “I’m excited about the opportunity for game summits, where we get our best people in a room, and they critique each other’s content, and offer improved ways to build better and better games. I’m thrilled about the opportunities that are ahead of us.” Ascoli adds that the game design functions of each company will merge together seamlessly. “It’s clear to everybody that there is very little overlap in the business-related segments, such as R&D and game studios,” he says. “The major synergy will come from non-business-related functions, such as support functions. 26

Global Gaming Business OCTOBER 2014

“As far as R&D is concerned, the amount of synergies is minimal. Once the merger has concluded, we will work with IGT to be more effective, with an emphasis on building centers of excellence. “We will seek to improve the connection between the developer and the players. We think this is a managerial capacity in the gaming team, and thanks to our experience in B2C markets, it is part of the GTECH DNA.” On the other side of the equation, IGT will bolster not only GTECH casino market share, but its international lottery business—VLTs in particular. Duarte notes that IGT will be an important addition as the company expands into new European markets like Greece, which is currently ramping up preparations for the continent’s newest WLA (World Lottery Association) VLT operation. “We’re really excited about the opportunity that Greece offers to us for the expansion of our market presence in the VLT space,” says Rachel Barber, chief technology officer for gaming at GTECH. “The central system contract has been awarded and there is an RFP out for the VLTs. We expect many vendors to respond.” Says Duarte, “We’re looking at the whole work stream of revenue synergies where we can leverage each other’s local presence or technology to enhance the overall offer in those markets. We believe there is an opportunity for revenue synergy by working together once the merger is complete.” Ascoli says that while IGT will certainly help GTECH as it moves into the wide-open market created with VLTs in Greece, the other wide-open market for expansion with IGT is one of the company’s current strongholds, the Italian VLT market. “Italy is a clear opportunity for IGT,” says Ascoli, “because today, there are no IGT machines in the Italian VLT market, despite a strong demand for the product. This is largely due to the complex technical hurdles that exist, but which the GTECH team has been so successful in managing. We think we can help IGT find a way to introduce their best titles in Italy.” Ascoli adds that there actually is IGT content in the Italian marketplace already, in the interactive space, where GTECH offers its iGaming customers IGT content through a partnership agreement. (“Let me add that they are performing very well,” he says.) But the company’s ability to help IGT enter the Italian VLT market, he says, is one of many instances where IGT will help GTECH expand content in its own international lottery markets. “I think iGaming is a clear area where we can help each other,” Ascoli says. “Because we are strong in this area, we can provide best-of-breed content to our customers and can provide valuable insight on the players. Meanwhile, we can

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“I’ve come to know a lot of the folks at IGT. They are extremely talented and hardworking, and we have a great working relationship. I think that will be a key strength going into an integration of this magnitude.” —Rachel Barber Chief Technology Officer for Gaming, GTECH

benefit from the huge amount of market research that has been conducted by IGT in the specific gaming area.” GTECH already has a real-money iGaming platform deployed in several jurisdictions around the world, and has been adding Spielo content. The addition of IGT content will be a natural progression, and according to Ascoli, Spielo content may soon have another outlet in the DoubleDown Casino IGT runs on Facebook. “We have clear evidence that providing new channels or new devices where players can experience gaming is indeed a way to expand the customer base,” Ascoli says. “We do not extract more value from the same players, but in fact we are successful in attracting more players—younger adult players—to the overall bundle of people who game in a responsible way. “Our strength in the WLA market, and in the VLT gaming segment, gives us the capacity to incorporate IGT content and provide the best solution to our customers. Also, players are clearly enjoying the opportunity to play games on different channels, on different devices. “This is why the two companies are coming together quite naturally,” Ascoli says. “Also, in a partnership that pre-dates the merger announcement, we tested the porting of games from IGT into our interactive platforms, and the games blend nicely with our platform. So our team will be able to repeat this in other places, particularly in the international segment, in addition to Italy.”

Helping Each Other The ability to complement each other’s markets goes to the core of why the GTECH/IGT merger was a good move, Ascoli says. “GTECH’s and IGT’s complementary businesses are proving themselves in the iGaming area,” he says. “IGT has been focusing on content design and delivery, while on the GTECH side we have been more keen on creating the overall platform and the CRM tools, to manage customer relationships in a way that’s agnostic to the game that players are enjoying.” “I think the two companies are a strong match,” adds Duarte. “And I think that is the strength of the combination. Focusing just on the WLA, I think we do have a one-stop shop capability that is unmatched in the industry. We see lotteries, particularly internationally but also increasingly in North America, become interested in more than just traditional lottery or instant tickets. We see them interested in sports betting and VLTs, and often in casino games. “We can offer everything to a lottery that is interested in pursuing any of the available alternatives. I think that makes us unique.” Duarte adds that GTECH’s historical strength in VLT and international casino markets is another nice fit with IGT. “We have a real intimacy with the in28

Global Gaming Business OCTOBER 2014

ternational player that I think balances very nicely with IGT, which derives a lot of its revenue from the North American market,” he says. Barber adds that the combination of the two companies results in a talent pool that is unmatched. “My experience has shown that in both companies we have a tremendous amount of talent—both on the technology side and on the game side,” Barber says. “While working with IGT prior to the merger announcement, we’ve developed a relationship, and it’s been very encouraging to see how well the two companies can work together. Whether we were working together on planning projects to integrate their games into our systems using the game-tosystem protocol, or the player/user interface integration, or even participating as members of the Gaming Standards Association, it is clear to me that the two companies will blend very nicely together. “I’ve come to know a lot of the folks at IGT. They are extremely talented and hardworking, and we have a great working relationship. I think that will be a key strength going into an integration of this magnitude.” That integration of technologies, Ascoli estimates, will probably take some time, and will set GTECH up to compete with the other lottery/gaming behemoth that will be finalized by next year, Scientific Games’ acquisition of Bally Technologies, or with other combinations of lottery and gaming companies that may crop up in the future—since, as Ascoli predicts, industry consolidation is by no means finished. “I think we should be in a very good position to do better than the competition,” says Ascoli. “Let me be a bit bullish here. It’s not just the matter of scale. I could refer to the fact we’ll be big, we’ll have a large amount of R&D we can offer, and so forth. “But my personal view is that the combined entity will be in the position to benefit from some key market trends we see in the lottery business today. And the most important one is that our customers—meaning operators and governments—are seeking growth. And because growth cannot come only from samestore sales, which is also very important, they are seeking to expand regulations, to expand the games going from lottery to interactive wagering to VLT as well.” The final advantage of the new GTECH, according to Ascoli and Duarte, is the wealth of content to be leveraged by the combined entity. “Ultimately, competition is about content, and IGT’s and GTECH’s unique combined libraries will provide the best content to drive company performance in the marketplace,” says Ascoli. Adds Duarte, “As suppliers of content, it’s incumbent on us to focus on innovation and really find a way to differentiate ourselves, so that our content reaches the player and provides them with the kind of entertainment experience they deserve.” Welcome to the new world of GTECH.

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GLOBAL GAMES As the gaming industry reaches a crossroads of consolidation, our annual spotlight on the slot supply sector shows uninterrupted innovation

2014

By Frank Legato

s is the case every year at this time, Global Gaming Business has been given a sneak peek by all the major slot manufacturers at what will be unveiled at this year’s Global Gaming Expo as the new “model year” of slot machines. This year, our annual roundup of new slot launches takes on extra meaning, as consolidation in the supply sector continues to alter the landscape on which we all do business. By next year, the top five slot manufacturers—IGT, Bally, Aristocrat, WMS and Konami— will be the top three, as both Bally and WMS will have been absorbed by lottery giant Scientific Games. IGT, meanwhile—still the leading slot manufacturer in the industry—will have been absorbed by another lottery giant, GTECH, and decisions will have been made that could affect the games not only of IGT but of GTECH’s Spielo division, which has seen unprecedented success in the slot market over the past year. (See cover story, page 24.) For this year, though, the status quo of the current slot market remains, as the mega-deals go through the normal regulatory and shareholder scrutiny on the way to finalization. The merging companies retain their historic identities for now, and show up at the annual trade show with enough in their own innovative libraries to ensure that this year’s G2E will present its most diverse lineup of products from the major suppliers. IGT, for one, is launching the first major upgrade in decades to its industry-standard traditional stepper line, with the unveiling of the much-anticipated S3000 line, while launching new branded slots from Harley-Davidson to Ellen. Bally is showing its chops with additions to its franchise Quick Hit se-

Global Gaming Business OCTOBER 2014

ries and new games like The Blob from its newly combined R&D team incorporating the former SHFL entertainment talent. WMS has soldiered on as usual, its acquisition by Scientific Games seamless as it launches new branded games like The Flintstones and a version of Battleship in the Colossal Reels format. Aristocrat arrives with new themes from Sons of Anarchy to Batgirl, along with new versions of its classic core games. Konami draws on its roots in the international video game business to bring new experiences to the slot floor. There is no shortage of innovation from smaller manufacturers, either, from groundbreaking new versions of Haunted House and Invasion from Multimedia Games to GTECH’s riding of the wave of popularity of its new True 3D technology. On the following pages, in alphabetical order by manufacturer, you will find the 2014 coming-out party of the slot supply sector. It will be another amazing show, on the way to what could be one of the most intriguing years yet in the supply sector. All articles written by Frank Legato, unless otherwise indicated.

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Ainsworth

Game technology Future Vision

Australian company takes on the Americas with a suite of fast-paced games and innovative technologies

hen Ainsworth Game Technology arrives at G2E this month, it will come armed with plenty of new product, but its motto and message will remain the same: “A Winning Play.” The Australian company, now expanding its presence throughout North and South America, will showcase an extensive library of new games compatible with the A560 SL cabinet, first previewed at last year’s show. According to the company, this variation of Ainsworth’s flagship is a “one-screen wonder, specially designed and custom-built for a unique, highly entertaining game range.” The cabinet utilizes the same operating system as all A560 cabinets, with a 32-inch vertical high-definition display, improved graphics and surround-sound, and an optional 19-inch LCD topper option for jackpot promotion. The family of games includes the standout performer “Rumble, Rumble,” along with “Whopper Reels,” “Bonus Bonanza,” “Rampaging Rhino,” “Frontier,” “5 Star Jackpots,” “Order of the Dragons,”

“Fire Wizard” and “Ice Wizard,” among many others due for release in the coming year. “This year’s G2E lineup is a combination of licensed brands, innovative game mechanics and hardware and exceptional math models that will definitely provide the best player experiences and create the biggest excitement on any gaming floor,” says Scott Clarebrough, Ainsworth’s group general manager of strategy and development. “We’ve pushed the boundaries of technology with our latest platform to ensure improved sound, graphics and a range of branded games like you’ve never seen before.” Following the success of “The Magnificent 7,” based on the 1960 spaghetti Western and introduced to great acclaim last year, Ainsworth will debut two new branded products, and they couldn’t be more different. “Showgirls” is based on the 1994 cult movie with Elizabeth Berkley. “The Sound of Music,” of course, is based on the 1965 musical with Julie Andrews. With its Vegas-party theme, Showgirls, in particular, lends itself to the casino environment; The Sound of Music will offer timeless images and music from the nostalgic favorite. But along with the iconic brands, Ainsworth also promises strong math and game-play aspects. “We’re true to our roots from our experience; we know what keeps people coming back is the game play and the players’ ability to win and win big,” says Mike Dreitzer, Ainsworth’s president of North American operations. “And from that standpoint, we are very excited about these branded products and believe they will fare extremely well in the marketplace.” Not surprisingly given the success of the top-performing licensed slot The Magnificent 7, Ainsworth will also debut “The Magnificent 7 Reloaded,” a sequel with abundant eye-catching new features. It’s designed to take full advantage of the company’s super-sized A560 Wideboy, with a 32-inch landscape-mode LCD top box and dazzling LED lighting. Also to be released on the super-sized Wideboy is “Reels of Wheels Horsepower,” which incorporates the “Mustang Money” feature game with the unique multi-wheel “Reels of Wheels” concept as well as free games. “We’re taking a very popular title with well-liked features, and in one super-charged game we’re packing it into our premium cabinet,” says Dreitzer. Jason Meyer, senior lead game designer and producer of alternate slot games at Ainsworth, says the games are designed to appeal to players at every level, in every age group, across the demographic spectrum. “We build games for true gamblers, people who never get tired of winning big jackpots,” Meyer OCTOBER 2014 www.ggbmagazine.com

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GLOBAL GAMES 2014 In anticipation of increased market share, the company will shortly break ground on a new U.S. base on over 23 acres in Las Vegas. This facility will open in 2016.

says. “One thing we’ve been doing going forward is making our games more digitally entertaining, but we keep that same math model in there, with strong volatility to keep players coming back.” In the jackpot products segment, Ainsworth will be showcasing a range of new Asian-themed link progressives that include “Lucky Treasure,” “Treasure Storm” and “Oriental Fortune.” Illuminated in the Super A560 cabinet, Treasure Storm is packed with three levels of progressives, two stand-alone progressives, and unique free-game features. With superior maths models to choose from—“888 Blue Dragon,” “888 Red Dragon” and “888 Yellow Dragon”—Treasure Storm promises to be a player favorite. Also making their G2E debut are Ainsworth’s latest multi-game entertainer packages: “Montana Multi Win 2,” “Multi Win 10,” “Multi Win 11” and “Multi Win Ultimate Choice.” In addition, Ainsworth will regale G2E with a new lineup of themes for its core GamePlus library: “Quad Shot,” “Double Shot,” “Triple Shot,” “Play 100Lines/50Lines,” “Wheel Winner” and “High Denom,” as well as new games in the Mystery series, “Golden Goose Mystery” and “Crazy Ways Legends Mystery.” The company, headquartered in New South Wales, is making significant inroads in the U.S. market—specifically in Mississippi, where it was licensed as a manufacturer in January; Missouri, where it won clearance to serve as a supplier in April; and Arizona and Montana, where it is now offering its product for sale. Ainsworth also is looking to aggressively expand its install base in Oklahoma. “There is really a lot of blue-sky opportunity for us,” observes Dreitzer. “There won’t be a whole lot of new casino openings over the next 12 to 24 months. But there are collectively over 115,000 units within those states alone, so there’s plenty of room for us to expand, and that’s what we’re focused on. “There has been an increased emphasis on analytics, maximizing revenues across all the units on the floor. That’s where we come in and say, ‘We have a product that could perform better on your floor than some of your existing product.’” In anticipation of increased market share, the company will shortly break ground on a new U.S. base on over 23 acres in Las Vegas. This facility will open in 2016. Though Ainsworth now comprises less than 1 percent of the North American market, with a great product lineup and an enhanced and motivated sales force, Dreitzer is confident the company will continue to make headway 32

Global Gaming Business OCTOBER 2014

and increase its footprint across North America. Latin America is also a big market for the company, and Ainsworth is doubling down its efforts to penetrate the market there. As always, and wherever the company operates, it comes back to the games. “At the end of the day, there’s something quite timeless and classic about a good gamble and offering great value to the player,” says Dreitzer. “We offer the player a good gamble that brings them back again and again.” Clarebrough calls this year’s G2E showcase “our strongest, most diverse product portfolio to date… Ainsworth has been building for the future, and now we’re ready to further raise the performance bar with more leading-edge brands and exceptional game titles. We are committed to delivering players quality unique entertainment experiences.” —by Marjorie Preston

More than a transaction. A connection. The real moment of truth on the casino floor is when a player gives you her money. Only she doesn’t actually hand it to you. She hands it to us. From the moment that currency touches our bill validator, we are responsible for providing an effortless, accurate transfer of cash into play. We accept your customer’s wager with reliable grace and efficiency, just the way you would personally. We are your representative on your casino floor. This philosophy has earned JCM its position as the industry leader, with more bill validators and printers in play than all other brands combined. And now, we are about to reveal how a simple buy-in can lead to a level of player engagement that goes beyond the transaction. We’ll help you make connections.

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American AGS Gaming Systems GLOBAL GAMES 2014

New Era

Colossal sizes, quirky games and legendary talent signal a new day for AGS

upplier AGS (originally known as American Gaming Systems) got a jump-start in the slot market under former CEO Bob Miodunski, who used his experience as head of Bally to groom what was mainly a Class II supplier into a manufacturer carving itself market share in commercial casinos across the country. Late last year, Miodunski—who had been lured out of retirement to recharge AGS—re-retired with the arrival as CEO of David Lopez. In his three years as CEO, Miodunski led efforts to break the supplier into Class III markets and engineered the December 2013 acquisition of the company by affiliates of Apollo Global Management, LLC.

Global Gaming Business OCTOBER 2014

Lopez, formerly head of Global Cash Access and COO of Shuffle Master, has initiated a new era at AGS, one that is seeing new formats, unique game mechanics and, in general, a new direction in game design. The company’s breakout product in the commercial casino market has been the “It Pays To Know” series, the knowledge-based bonus slots led by “Ripley’s Believe It Or Not!” that award the highest bonuses to those who answer general-knowledge quizzes correctly. The knowledge-based slot bonus game has been popular with players, and has earned well above house average everywhere it has been placed. By the end of the year, there will be three knowledge-based AGS slots out in the market, with “Are You Smarter Than A 5th Grader?” having launched shortly before G2E and “Family Feud” to follow shortly after the show. If early indications from the Ripley’s game are any indication, the company could soon have three hits in the market. “We’ve had a lot of success with the trivia-based product,” says Ken Bossingham, chief operating officer of AGS. “A lot of casinos across the U.S. already have the Ripley’s experience, and we’ve got two more games in the series coming out. “The skill-based games seem to connect very well with players. The human species likes to be challenged, and in the slot space, most games don’t challenge you. When you play a video reel game, you press a button and it tells you whether you won or lost. You don’t have an opportunity to impact your outcome. That’s what’s neat about the trivia games, and that’s why they are part of our portfolio.” Under new CEO Lopez, though, that portfolio is beginning to take on a very new look. In addition to normal changes that can be expected under new senior management, a new product direction for AGS began with two strategic acquisitions. Last spring, the company announced the acquisition of Colossal Gaming, the company founded in 2003 by former Casino Data Systems founder and CEO Steve Weiss which specializes in super-sized slot games such as “Colossal Di-

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amonds” and “Hot at the Top.” Then, this summer, the company announced its entry into the table game market with the acquisition of Casino War Blackjack, Inc. and its portfolio of table games—most notably “War Blackjack.” “We couldn’t be more confident in the quality of War Blackjack to kick off our inauguration into the table games business,” said Lopez after the July acquisition. “Blackjack is the most popular table game in North America and War is a fun, widely recognized game that is easy to learn. War Blackjack elevates the traditional blackjack experience by empowering the player to engage in an optional game of War prior to the blackjack game.”

Colossal Addition The AGS lineup of new games for G2E will be dominated by those from its new Colossal Gaming division. Weiss, who has taken the role of central game developer for the new AGS, is known not only for creating the highest-earning of the giant slots, but for a collection of Colossal games both in large-format style and traditional style that each present something unique to the market. “(Colossal) has had lot of documented success in large-format gaming, which we weren’t focused on,” Bossingham comments. “We believe that with Colossal, the number of bullets we have to be a better partner with our customers expands. In this case, one plus one does equal three.” The advantage of diversifying game development operations, he adds, is that it creates a very healthy internal competition. “There’s a collaborative nature that comes with game design, but there’s also a competitive nature,” he says. “We have talented designers at AGS who have a certain design philosophy. Steve’s design philosophy is different, but that creates competitive design studios.” It starts with the biggest current hit from Weiss’ former company, “Colossal Diamonds.” The game sits on a giant cabinet—AGS calls it “Big Red”—that measures eight feet across, with three separate 42-inch LCD monitors each serving as an independent super-sized reel. The game itself is a classic volatile highdenomination, single-line, three-reel stepper, available in dollars only, with a max bet of $15. Andrew Burke, vice president of product management for AGS, says Colossal Diamonds is unique among the giant slots, because it earns like a workhorse game rather than a novelty product. “Colossal Diamonds is one of the hottest games we’re rolling out,” Burke says. “It’s the No. 1 product in California, and

pretty much in every other state where it’s introduced.” Burke says he realized that Colossal Diamonds was different when California’s Pechanga Resort ordered a second unit, placing them back-to-back on the floor. “I thought this was a one-per-property product, but Pechanga has proved differently,” he says. “We’re now placing two at a time.” Colossal Diamonds joins other large-format games such as “Hot at the Top” as games that are unique in the genre—Hot at the Top, for instance, displays three reel sets, each a full-size game screen. It’s an old-school, totem pole-style game. “It’s indicative of the way Colossal thinks about game design,” Burke says. “Colossal thinks way outside the box. They want to do something unique and different with every game they do. They have a great creative process that’s very collaborative— when (the engineers) are working on a game, everyone is encouraged to comment and give feedback on the game.” That’s been the case with what will be the highlight Colossal game to be launched at G2E, “Dynamite.” (It was a working title at press time; it may change by show time.) With this game, Weiss’ team has built a specialty cabinet around the theme of the game itself. The base game—a five-by-three, ways-to-pay video slot—is housed in what looks like a giant wooden dynamite crate, complete with labels like “TNT” and “Danger—Explosives.” Sitting atop the game is a single giant bonus reel, wrapped around sculpted sticks of dynamite. And the final hook? There is a dynamite plunger in front of the player. To launch the bonus reel, you get to depress the plunger like you’re blasting rock out of a mine shaft. But it’s not just the novelty items like Colossal Diamonds and Dynamite that distinguish the new AGS game design team. The low-volume novelty games are accompanied by a complete line of stand-alone slots, each offering something unique in the marketplace. “Birds of Orion” and “Ancient Embers”—from third-party studio Crazy Tooth—both employ what is known as the “Uni-Reel” play mechanism. Instead of five spinning reels, the screen’s paylines or ways-to-win configurations are built around a single reel that snakes around the screen, similar to what one would see in an arcade game. Players see symbols enter at the top left-hand corner and travel through the play field, stopping to form winning combinations. It’s a compelling visual that departs from humdrum reel-spinning. Birds of Orion features a beautiful graphical display of neon colored birds OCTOBER 2014 www.ggbmagazine.com

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GLOBAL GAMES 2014 The base game—a five-bythree, ways-to-pay video slot—is housed in what looks like a giant wooden dynamite crate, complete with labels like “TNT” and “Danger—Explosives.” Sitting atop the game is a single giant bonus reel, wrapped around sculpted sticks of dynamite. And the final hook? There is a dynamite plunger in front of the player.

on a black, celestial background. Ancient Embers features fiery animal symbols such as a soaring eagle, diving whale and howling wolf to provide a colorful presentation. The Totem Symbol Upgrade and Ancient Color Feature transform symbols into wilds and multipliers. The experience is augmented by high-quality sound and 3D animation. Rounding out AGS’ trade show lineup will be its freshly acquired table games, including a variety of traditional games in addition to the specialty Blackjack War. According to Bossingham, the coming months will see a merger of technologies, as the Roadrunner platform perfected two years ago is combined with the Colossal platform into what will be introduced as a new technology platform at G2E 2015. Along the way, the company’s executives will gauge

Global Gaming Business OCTOBER 2014

the success of play mechanics such as the trivia-based bonuses that are seeing great success now, and the Colossal attributes, and how all can be combined into a new direction. “When two companies come together, it’s very difficult to run multiple platforms,” Bossingham comments. “So, we’ve used this as an opportunity. We’re looking at the strengths of Roadrunner; we’ve learned a lot as we’ve introduced that product into the Class III space. Colossal’s platform has been out there a little longer than Roadrunner, and continues to improve. We’re working toward the new-generation platform that is going to incorporate everything we’ve learned from both platforms.” He adds that the size of AGS is an advantage when it comes to trying out-of-the-box ideas for new slots. “As a smaller manufacturer, we have a lot of freedom to do things never seen in gaming channels before,” Bossingham says. “We take that opportunity very seriously. Our new-generation platform is going to bring some elements forward that have never really been seen in the brick-and-mortar space before.” The agility that comes with being a smaller manufacturer also will help AGS compete with the new behemoths of the slot market that are being created with the mega-mergers. “It’s an unprecedented time,” Bossingham says. “I like where AGS stands right now. We’ve got an unencumbered view of our windshield; we have nothing in our way. With these large companies coming together, it becomes very challenging to hold and grow their market shares—which sets up the smaller manufacturers quite nicely to figure out their best niche opportunities to grow. “It’s nothing short of exciting, and we’re looking forward to winning.”

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GLOBAL GAMES 2014

AristocrAt technologies

The Next Level

Aristocrat gathers its talent, resources and new acquisitions in a drive to conquer the slot market

he big news last year at Aristocrat Technologies was the slot-maker’s retooling in talent and game design resources— the addition of high-powered designers like Joe Kaminkow, Dan Marks and Scott Olive presenting new opportunities to gain market share. This year, the company calls upon its vastly improved arsenal of talent and resources—including its acquisition of leading Class II supplier Video Gaming Technologies—in an aggressive campaign to gain market share in North America and elsewhere. “For G2E 2013, our theme was ‘Transforming the Game,’” says Matt Wilson, Aristocrat’s senior vice president of sales and marketing for North America. “That had a connotation that good things were about to happen at Aristocrat, and we knocked their socks off in 2013. But even in the subsequent 12 months, a lot has changed. We’ve built significant momentum around our core business, but we’ve also gone through serious consolidation ourselves.” Wilson calls the acquisition of VGT important from a number of different perspectives. It expands the company’s relationship with tribal gaming, which, he notes, has always been an important segment for Aristocrat. Tribal casinos, for instance, were the first in the U.S. to include Aristocrat’s then-radical multi-line video slots in the 1990s. But he says the added significance of the VGT purchase is that it is in line with the strategy put forth several years ago by Aristocrat CEO Jamie Odell to increase the com38

Global Gaming Business OCTOBER 2014

pany’s base of recurring revenue. “We’ve had strong organic growth in recurring revenue under the leadership of Dallas Orchard (VP of gaming operations),” Wilson says. “Our installed base in gaming operations was around 8,200 units in March and has been growing strongly ever since. VGT has a strong installed base as well. From a strategic and scale standpoint, the deal makes a lot of sense.” He adds that the acquisition earlier this year of Paltronics, a leading supplier of progressive systems, bonusing applications and jackpot controllers, is taking the company’s popular Oasis 360 casino management system to the next level. In fact, Aristocrat’s theme for this year’s G2E is “Taking It To The Next Level,” as the talent additions, acquisitions and new technologies converge into a collection of new content across the company’s entire product portfolio. “This year is all about the next level—about Aristocrat raising the bar for everything we do,” says Wilson. “In 2014,” adds Orchard, “we have enough confidence across our whole business that we can really tell the marketplace we’re taking it to the next level. When you arrive at Aristocrat’s booth at G2E 2014, that will be very apparent in the breadth and quality of what’s on show.”

The Helix Content, of course, is king in all three business lines—for-sale games, gaming operations and systems—but this year, a new hardware package also takes center stage. Called “Helix,” the new family of cabinets—available in upright, standard slant and “Super Screen Slant”—can be adapted to any game in the Aristocrat library.

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“Buffalo” has been rated the No. 1 slot game in the marketplace for three years in a row by the Goldman Sachs annual survey of slot managers. Helix cabinets feature two floating LED HD displays with frameless, infinity edges. The 1080p resolution combines with integrated pinstripe lighting and immersive rear-surface ambient lighting for vastly improved visuals. A quad sound system with subwoofer completes the package. Aristocrat engineers worked closely with leading ergonomic experts to ensure the Helix cabinet delivers unmatched player comfort, with features like an optimal button deck height designed with both male and female players in mind, a plush padded bolster, added leg-room clearance, and easy-view screen heights and angles. “We never want players to get up from a Helix machine because they are tired or uncomfortable,” says Wilson. The core Helix cabinet joins other new cabinet styles developed specifically for the Gaming Operations division. “When we reflected on our portfolio of hardware relative to the competition, we realized we weren’t leading the market, so we spent a lot of time and effort in R&D to develop the new range of cabinets,” Wilson says. Not only is player comfort paramount in the new Helix product, but Wilson says the product has a lot of “curb appeal” that makes core Aristocrat games “pop” on the gaming floor. He says the results in the field so far have been “staggering,” which he attributes to extensive research done in developing the cabinets, with input not only from players but from slot technicians. “The technicians came up with about 70 things they wanted to change,” he says, “and we went back and checked off every single item.”

Games and More Games The Helix is an important new supporting player to the stars of the company’s G2E show—the games being created by the top talent the company has assembled. “We have the industry’s best game designers in each of the segments where we operate,” says Orchard. “We feel we have the dream team in terms of game design.” This year, one of the “dream team’s” objectives was to maintain dominance in the area where Aristocrat has always excelled—the low-denomination, highvolatility multi-line video slot designed for the core gambler, under the group heading C*Series (for core Aristocrat). The for-sale games under this heading have been surging in popularity. “Buffalo,” for instance, has been rated the No. 1 slot game in the marketplace for three years in a row by the Goldman Sachs annual survey of slot managers.

That survey contains a question asking operators what percentage of the floor they would devote to Aristocrat if they opened a new casino today. According to Wilson, quoting the Goldman Sachs Survey, the response went from 10 percent in 2013 to 26 percent this year. “That’s a really strong validation of our strategy and the investment in game design talent,” he says. “The reason for that jump is that we’ve expanded and diversified our portfolio beyond just the pure gambling-style products to include entertainment-based products. We’re commanding a larger percentage of casino floors because of it.” Even with all the product diversification, the company continues to dominate the core gambler space with the C*Series, which Wilson calls “the lady that brought us to the dance.” He notes that Aristocrat has retained the same designers in the core segment for decades, reflecting the company’s commitment to this segment. Among the top C*Series releases at G2E will be “Super Wheel Blast,” a core-style video slot with a 3D wheel on top that interacts with game play. “It doesn’t look like a traditional Aristocrat product, but it plays like one with lots of volatility,” says Wilson, “along with some pretty unique bonus elements.” The central bonus feature involves the 3D wheel, which displays two concentric circles of awards. The bonus symbols are also wild symbols, so the bonus OCTOBER 2014 www.ggbmagazine.com

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GLOBAL GAMES 2014

is triggered by a winning combination, and the wheel spin can augment the payout. The outer ring on the wheel contains credit awards, and multipliers to be applied to the spin. On the inside ring are multiplier numbers from 5 to 50. “If you get a big win in the base game such as five of a kind, what you’re hoping for is a multiplier, and on the inside wheel a 50X,” says Wilson. “These are huge potential wins.” Orchard says Super Wheel Blast is indicative of the company’s dedication to improving the core series with more than reprises of classic games. “A product like this represents real innovation within the core,” he says. The “Legends” series continues this fall, with more classic Aristocrat games presented as two games in a machine—one in the unchanged classic version and a “Deluxe” version with modern, enhanced features. (Company officials have said players have preferred the “Deluxe” versions by a wide margin.) At G2E, the company will launch “Wicked Winnings Legends,” giving the Deluxe treatment to the classic Aristocrat game that came in fourth in the Goldman Sachs operator survey of best slots. And finally, core-game additions will be found this year in Aristocrat’s J*Series (J for jackpot) of progressive games. Notably, Olive designed a new progressive link called “Cash Explosion,” with four core base games under a common progressive link—the first Aristocrat for-sale progressive link in the North American market. “It’s something our customers have been requesting for a long time,” says Wilson. Also in the J*Series is a new version of Aristocrat’s popular multi-game product, “Wonder 4 Jackpot.” Wonder 4, which has been one of Aristocrat’s hottest products, gives the customer a menu of four games for four different reel sets, and players can mix or match the games any way they like, spinning all four reel sets simultaneously. Wonder 4 Jackpot places this game menu under a five-level progressive jackpot. Core games included in the Wonder 4 Jackpot menu are Wild Panda, Miss Kitty, Wicked Winnings 2 and Buffalo. Aristocrat is launching two new links in its iconic Cashman series, “Cashman Fever II” and “Cashman Takes Flight.” Both feature the familiar multi-level progressive feature, but on the latter game, the popular Mr. Cashman character flies across the top boxes of various games on the link, dropping down wild symbols, multipliers and various mystery awards to the individual games. Base games are Buffalo and Five Dragons. The other key game group, the E*Series—E for entertainment—grows from the initial games provided by Marks, the longtime game designer for High 5 Games who began working exclusively for Aristocrat last year. 40

Global Gaming Business OCTOBER 2014

This year, Aristocrat arrives at G2E with extensions of successful E*Series products from last year, and a featured new game family, “The Romance of Fire and Rain,” which applies Aristocrat’s multi-play format to the entertainment genre.

Gaming Operations Aristocrat’s Gaming Operations division is hitting its stride this year, with the help of new technology to go with the company’s legendary design talent. Spearheaded by game studios run by Kaminkow—whose hits from last year include “Batman Classic TV Series” and “The Rolling Stones,” among others—and Ted Hase, whose credits include the “Tarzan” series and “The Walking Dead,” the Gaming Ops section got a wealth of new additions to its hardware toolbox this year. There were already five hardware configurations being used in Gaming Ops—the VERVEhd portrait cabinet, Wonder Wheels, MVP, Viridian WS and Feature Top Box. This year, the company adds two more—“Arc” and “The Behemoth,” each with dedicated launch titles. The Arc cabinet includes dual 42-inch curved, high-definition touch-screen LCDs, “bringing an immersive and holistically unified gaming experience to the player,” says Wilson. Featured on the Arc will be “Britney Spears” and “Buffalo—The Next Generation.” Britney Spears features the pop diva’s greatest hits in an immersive game with booming sound. The new Buffalo game uses the super-sized format to bring home the sights and sounds of stampeding buffalo in one of the game’s signature bonus events. The Behemoth is just what it says—according to Orchard, at 10 feet tall with an 84-inch LCD monitor, it is the largest of the large-format slots ever to be introduced to casinos. “Aristocrat has been urged to get into the Big Bertha space for some time,” Orchard says, “so we decided to create the biggest Big Bertha in the marketplace.” For the launch, Aristocrat chose a core game with particularly booming sound and large, immersive features—“Buffalo Stampede.” Other Gaming Ops launches this year bolster Aristocrat’s licensed portfolio with “Sons of Anarchy,” “Ted” and “Superman the Movie.” Sons of Anarchy, based on the hit FX series about the lives of a close-knit outlaw motorcycle club in California, reprises the VERVEhd cabinet, which was used to great effect on last year’s The Walking Dead slot game. Ted, based on Seth McFarlane’s raunchy 2012 comedy about a living adult teddy bear, and Superman the Movie, based on the first installment of the film series featuring Christopher Reeve as the Man of Steel, are both on the “Wonder

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Wheels” format, the giant setup featuring multiple spinning bonus wheels created by Kaminkow for last year’s Batman game. Other new recurring-revenue titles slated for 2015 release include “Pixie Wishes” from Dan Marks and “Can Can Paris” from Ted Hase, leader of the Studio 54 design team, and a few others that the slot-maker is keeping under wraps until the G2E show. All the new games, of course, will be accompanied by a complete display of new products from Aristocrat’s systems division. Featured will be new developments for the Oasis 360 casino management system that have added enterprise-wide bonusing features. Available to Oasis 360 customers as well as casinos using other systems, Aristocrat’s new Oasis Halo suite and enterprise-class loyalty management solution will be on dispay at the show, boasting the industry’s most advanced loyalty-building software. The company also will demonstrate the new Oasis Onelink enterprise media management system, which is available for deployment across multiple CMS providers. Onelink can support an unlimited number of slot machines and can integrate directly with Onelink slot and table software modules to display real-time jackpot and bonusing odometers on digital or LED signage. Additionally, Aristocrat will show its new floorwide Elimination Bonusing Module, in which players can use the nCompass media window or LCD to compete through multiple levels of a “rock, paper, scissors” game. The last player standing wins first prize. Finally, Aristocrat will show its award-winning Episodic Bonusing, which leverages mobile technologies to engage players beyond the walls of the casino. The advancements in the company’s systems division are a bonus to what will be the largest game display ever staged by the company—nearly 200 new titles in all. “After the great G2E last year, the challenge for this entire year has been, ‘How do we beat that?’” says Orchard. “And we believe we have. We’re in a fantastic position as a company—we’ve got six of the top 10 performers in the marketplace right now. “All of our investment has paid off, and G2E 2014 is setting up Aristocrat for the next level in 2015.”

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Aruze GLOBAL GAMES 2014

Pouring It On

Gaming America

Aruze adds titles and innovative game play to all of its game groups in its largest-ever G2E display

ruze Gaming America just moved to a larger Las Vegas headquarters facility. It is a move which represents the slot-maker’s rapid growth in the North American market. “As shipments grow, the company grows,” comments Rich Martinez, senior product specialist and marketing analyst for Aruze Gaming. “We see the focal point of the America division growing every year.” Aruze is growing on the strength of a wealth of recent innovations the manufacturer has launched in a variety of game styles—from the elaborate top boxes of the G-Deluxe video series to the Innovator and Innovator Deluxe reel-spinning lines; from crowd-pleasing G-Link community-style games like Paradise Fishing to G-Station, the company’s popular line of multi-player electronic table games. This year, Aruze Gaming America, the U.S. division of Japanese amusement and gaming supplier Universal Entertainment, seeks to capitalize on all its recent innovations with new entries in every game category, as it arrives at the Global Gaming Expo with its largest group of new games ever. “Our game design has been really focused on innovation,” says Aruze Chief Operating Officer Kelcey Allison. “One of the fundamental initiatives of our chairman (Universal’s Kazuo Okada) is that he really wants to be innovative. So, we really focus on innovation for casinos, and how to reinvent a lot of our products.” He cites the Innovator stepper series as an example—the original line was a new take on the traditional reel-spinner, with large reels backed by multi-colored LED lighting and variable reel speeds. The company reinvented that group with Innovator Deluxe, adding the elaborate top box bonuses popu44

Global Gaming Business OCTOBER 2014

lar in the G-Deluxe video series. “We really focused this year on widening the library for that cabinet, in particular,” says Allison. “At the show, we’re going to debut a ton of new titles for the Innovator series.” In fact, this year, the company refreshes all its game formats with new titles, as well as launching a follow-up to one of Aruze’s biggest-ever hits, the Paradise Fishing community-style game, and adding to the company’s successful line of multi-player e-tables.

Stacks and Wheels For the core G-Series video line, Aruze is launching new titles utilizing the popular “Ultra Stack” feature, which feeds stacked winning symbols and stacked wild symbols to the reels during spins. “Ultra Stack Poseidon,” “Ultra Stack Egypt” and “Ultra Stack Savanna Rush” will be among 15 new Ultra Stack titles debuting at G2E, bringing the total number of Ultra Stack titles to 25. “We have had runaway hit No. 1 single with our Ultra Stack Series,” says Allison. “They’re just doing gangbusters everywhere, so we’re expanding that line of games.” Additionally, the company will launch a new game group featuring stacking game symbols and wild symbols, called “Stackin’” and “Mystery Stackin’.” Also in the G-Series, Aruze is launching “Captain’s Treasure 500G.” A clone of last year’s hit “Dragon 500G,” the central feature is a maximum possible 500 free games. Each free-game bonus symbol randomly awards from three to 30 free games. The symbols can cover the entire screen, which, with a bonus number of free spins, gives you 500. As with other games in the 500G series, the player has the option of picking a credit award in a range comparable to the free-spin prize if he wants to

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“

It’s a totally new spin, and it has nothing to do with fishing. What it does have is a five-level progressive feature per device, 10 bonus features, and a communal bonus on three giant wheels which are displayed above the six-game configuration.

”

dispense with all that spinning. In this case, a wheel spin determines the credit award. In the G-Deluxe video series, new games will be displayed that add sculpted toppers to the typically elaborate top boxes. The cabinet for “Dark Samurai” is actually a sculpture of a samurai warrior holding two swords. “Mermaid Fantasy” is topped by a sculpted mermaid. Both games feature multiple bonus events and a main bonus event on a mechanical spinning wheel in the middle of the top box. Finally, the company’s new video slots will be accompanied at the show by the launch of a new multi-use, premium stand-alone cabinet. Called “CUBEX,” the versatile cabinet features high-definition 24-inch LCD monitors, a completely redesigned, ergonomically friendly box, and “one of the fastest processors we could get in the world to run the data,” according to Martinez. Martinez says the stand-alone cabinet can easily be converted into one of the “Deluxe” games, with the large top box capable of being attached for a 10minute change-over. The company will expand its stepper library with show launches in both the Innovator and Innovator Deluxe game groups. In the standard Innovator fivereel series, the company will feature the new “Rapid Shot” series of games, with three initial releases—Rapid Shot Ruby, Rapid Shot Diamond and Rapid Shot Sapphire. The three games are linked to a five-level progressive, with jackpots dis-

—Kelcey Allison, COO, Aruze

played on a 60-inch overhead LCD monitor. According to Martinez, the company will offer two-sided signage for back-to-back, three-game banks. The five progressive jackpot levels are won through scattered symbols in the primary game—six or more symbols on the screen trigger the corresponding jackpot. The title feature occurs when a Rapid Shot symbol lands on the middle reel. That triggers one free game with a significantly increased chance of hitting one of the progressives. In the Innovator Deluxe group, “Crazy Stars” and “Hot Hearts” will be featured. Both games include a “Prize Selection” feature that gives players multipliers for free games based on a roulette wheel spin—the wheel lands on a credit amount, and the first bonus symbol landing in the free spin event returns that prize. The second bonus symbol in a free spin gets two times the amount, and so on in multiples of two, up to 10 bonus symbols for 10 times the roulette prize.

All Together Now Aruze has augmented its traditional slots with an impressive lineup of multiplayer products, in the form of the G-Station series of electronic table games and the G-Link line of community-style slots. The G-Station line has seen great success with the “Dealer’s Angels” brand of multi-player video blackjack and baccarat, the “Lucky Big Wheel” OCTOBER 2014 www.ggbmagazine.com

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big-6 game and “Shoot to Win Craps,” an electro-mechanical offering using physical dice in a chamber. At G2E, the company will launch a new e-table line with “Virtual Craps.” Instead of dice in a mechanical chamber, Virtual Craps uses a 3D holographic display. The dice appear to bounce from the shooter and roll around in a central chamber. Allison says it’s designed to provide an authentic craps experience in jurisdictions like California, where physical dice are not legal, even in an automated format. “The 3D holographic dice game is absolutely beautiful,” Allison says, “and the game plays just like a live craps game. We’re very excited about that.” The G-Link series has been home to the games that arguably put Aruze on the map in the U.S., “Paradise Fishing” and “Amazon Fishing.” The two games, which are grouped in banks of six against walls, are equipped with joysticks at each play station to use as “fishing rods” in a community bonus played out on a massive video “pond” created by three adjacent giant LCD monitors. The games both feature “Real Feel” technology, which creates the sensation of a fish tugging on the line when a fish is caught for a bonus. Around 100 of the original Paradise Fishing units are still out in the field four years after the game’s introduction, and are still drawing crowds in casinos. The second generation of G-Link included both the clone Amazon Fishing and smaller, two-game linked units Rich Life and Sinbad, which employ competitive bonus games on a 60-inch overhead LCD monitor. The third generation of G-Link, to be available in both the large six-game version and the smaller two-game units, moves away from fishing to offer a community-style multiple progressive experience. “Players’ Party” is an impressive six-game setup packed with bonus features, video wheels, and a five-level progressive jackpot feature on the big video 46

Global Gaming Business OCTOBER 2014

display. “It’s a totally new spin, and it has nothing to do with fishing,” Allison says. “What it does have is a five-level progressive feature per device, 10 bonus features, and a communal bonus on three giant wheels which are displayed above the sixgame configuration.” A button replaces the joystick. Some features in the remarkable collection of bonus games are triggered through special symbols on the main reels, with others triggered by the giant video wheels on the elaborate display. On the main reels, symbols depict roulette wheels, dice, bingo balls and blackjack hands. When one of these symbols forms a bonus trigger for any player on the bank, the game launches into a communal bonus for the entire bank—instead of fishing with the other players, the bonus events are games of craps, blackjack, roulette or bingo. The wheel symbol takes players to the giant “Big Chance Wheels” on the top video display, with slices awarding bonus credits, free games with multipliers, free games with wild symbols or stacking symbols, or the “Progressive Challenge,” a bonus game that leads to one of the five progressive jackpots—a “Mini” resetting at around $15; a “Minor” resetting at around $50; a $500 “Major” and the “Grand” jackpot, resetting at $2,000. “We wanted a third generation of this format,” Allison says. “There have been a lot of Paradise Fishing games out there for four years. We wanted something completely different as a refresher for that premium game.” The high-profile community game rounds out a landmark show for Aruze. “This will be our biggest booth ever,” says Martinez, “and it’s going to be the most elegant our booth has ever looked as well.” He adds that there will be “a few surprises” in the display that the company is keeping under wraps until the show. With more than 220 titles displayed and a booth enlarged by 2,000 square feet over last year’s show, Aruze will have a grand stage for those surprises. And a grand stage for its latest comingout party.

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Bally Technologies

End to End

Bally Technologies to dominate G2E floor with most diverse product range ever

t is fitting that the booth of Bally Technologies at this year’s G2E show is the size of a small casino, because it will offer just about everything that goes into a casino. What Bally Technologies will look like after next year’s expected completion of its acquisition by lottery giant Scientific Games has yet to be determined, but what certainly will not change is the diversity and range of the manufacturer’s product portfolio, thanks in part to its own acquisition of the former SHFL entertainment. Bally’s trade-show real estate—at nearly 26,000 square feet, it will be the largest exhibit at G2E—will be jam-packed with all styles of slots, electronic table games, table utility equipment and system solutions. Within that variety, though, is another entire world of variety within the slot space alone. Before there were any talks of mergers or acquisitions, Bally had been beefing up its game development capabilities. Today, with nearly 30 game design studios and some of the most talented engineers in the business, Bally can crank out an amazing volume of new game content. The incorporation of SHFL added that former company’s Equinox cabinet and line of games, many of them already hits in Asia and Australia, as well as SHFL’s line of proprietary table games and e-tables. All that content goes into the product development mill at Bally, its design studios in a very healthy competition with each other to create hit slot games for casinos and for a variety of online, social and mobile channels through the Bally Interactive division. G2E, though, is the annual showcase for casino slots, which is the reason for the casino-size Bally booth. The company is showcasing several new cabinets, including a theater-style setup, a new hybrid slant-top, and a 360-degree carousel spectacle. The latter setup, called the “Alpha Pro Wave 360,” is a circular carousel of five slot machines with a dedicated dragon-themed game. Around the top of the carousel are five adjacent curved video monitors, on which animation related to the games travels around, stopping to award credits, wilds, multipliers and free games to individual games on the bank. In the launch game, called “Dragon Spin,” an animated dragon travels around the circular monitor dropping mystery awards to the individual games, and stopping to display numbers of free spins when they are triggered by individual games. Each of the new hardware setups is host to a new slot game, with several 48

Global Gaming Business OCTOBER 2014

The company is showcasing several new cabinets, including a theaterstyle setup, a new hybrid slant-top, and a 360-degree carousel spectacle. games hosting fresh licensed brands. Joining them are a broad range of new games presented in formats like the popular Alpha Pro Wave video cabinet. The Alpha Pro Wave, with its 40-inch concave-curved LCD monitor, was one of the hits of the show last year at G2E, and Bally has used its versatility to spread the technology across many different standard game styles. “It’s the most universal cabinet we own,” comments Mike Mitchell, vice president of game development and engineering at Bally. “In same-title performance, the

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earnings are double on the Wave. It’s cool to look at, and every game we put on it, the player experience is better.” “It’s our success story of the year,” adds Jean Venneman, vice president of product management. “It continues to support not only the V22/22 and V32 video formats, but new Wave-specific titles as well.”

Lynda, Friends and Beards One of those “Wave-specific” titles is one of Bally’s new licensed brands, “Wonder Woman.” Based on the campy 1970s TV series with Lynda Carter as the Marvel Comics Amazonian superhero, Wonder Woman, the slot machine, uses the Pro Wave to mine the classic TV series for everything from video clips to the cheesy, mock-serious theme song, which repeats at various points in the game. The initial base games are “Wonder Woman Gold” and “Wonder Woman Wild.” Each of the games, designed by Michael Gottlieb in Bally’s San Francisco studio, features free-game bonuses, expanding wild symbols and a three-level progressive jackpot, available at any bet level. Carter herself is expected as a featured visitor to Bally’s booth at G2E. (No, not in costume. Mitchell says that’s been a common question.) Another new Pro Wave title is “Heavenly Riches,” a multiple-progressive game in the vein of the manufacturer’s hugely popular Quick Hit series. As in the Quick Hit games, five progressive levels are returned by scattered jackpot symbols—in this case, gold ingots. Five or more scattered ingot symbols return jackpots with resets ranging from $20 to a wide-area top prize. There is an extra “Red Envelope Banked Progressive” that is triggered by envelope symbols on the outer reels. Two other new licenses are being used to launch the new “Alpha 2 Pro Series Theatre,” a two-machine presentation under a single 55-inch monitor. The individual machines are on the Pro Wave, but the configuration conveys a cinematic feeling to envelop players in the game, says Mitchell. The new two-game cabinet setup will host heavyweight titles, in games based on the hit 1990s sitcom Friends and the current cable reality hit Duck Dynasty.

Based on the campy 1970s TV series with Lynda Carter as the Marvel Comics Amazonian superhero, Wonder Woman, the slot machine, uses the Pro Wave to mine the classic TV series for everything from video clips to the cheesy, mock-serious theme song, which repeats at various points in the game. “Friends” is a progressive video slot featuring all the characters of the popular sitcom, which TV Guide rated one of the 50 greatest shows of all time. The bonus events are packed with video clips from the show’s funniest moments, and a wheel event awards credits or one of four free-game features. “There were 10 seasons, with so many funny moments,” says Venneman. “There is so much we can do with this theme.” “Duck Dynasty,” produced in partnership with G2 Game Design, features six different bonuses based on the A&E reality show centered around the lives of Louisiana’s Robertson family and its bearded men, who struck it rich building a company based on patriarch Phil Robertson’s invention of the Duck Commander duck call. Bonus features like “Miss Kay’s Turtle,” the “Duck Commander Wheel” and others draw from what is the most-watched reality cable TV show in history. Bally officials say they expect to host an appearance by some of the cast members at the booth. Bally is launching its new V27/27 cabinet with several core video slots. The V27/27—the numbers reflect the two 27-inch LCD video monitors—is designed as a hybrid between a slant-top and an upright cabinet. The two monitors are easily viewable, and are positioned similar to the monitors on standard uprights like Bally’s workhorse V22/22. However, the button panel is on a flat tabletop-style surface like a traditional slant-top. “We’re getting away from the concept of a traditional slant,” says Venneman. OCTOBER 2014 www.ggbmagazine.com

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GLOBAL GAMES 2014

The V22/32 cabinet, with its tall vertical top box and 1080p-resolution 32-inch monitor, is host to “Betty Boop’s Firehouse” and, appropriately, a ladderstyle bonus.

“This new cabinet takes all of our core video and dual-screen library.” Among the new games launching the V27/27 are “Ginger Wilde” and “Parfum Adore,” with companion games “Rebel Wild” and “Shadow Prince.” Ginger Wilde wraps a mystery stacked reels feature in both the base game and free games around a theme featuring a mysterious female spy character—and of course, several wild-symbol features to go with the character’s name. Parfum Adore is Bally’s first four-by-six reel format, with six reels and stacks of symbols that sometimes cover more than half the reel strip. Free games feature “Super Stacks” exclusively, with symbols covering multiple reels for big wins.

Betty, Zoltan and the Blob Bally’s numerous other cabinet styles are host to a wealth of new titles in every game category, including the slot-maker’s most enduring themes—like the still-growing group of video slots featuring legendary cartoon vixen Betty Boop. The V22/32 cabinet, with its tall vertical top box and 1080p-resolution 32-inch monitor, is host to “Betty Boop’s Firehouse” and, appropriately, a ladder-style bonus. The top of nine progressives on the ladder is a wide-area progressive on Bally’s Cash Connection link. (The game also is available as a near-area progressive.) The Betty’s Blazing Tower Bonus takes players up the ladder toward the top prizes. Another game in the Betty Boop franchise, “Betty Boop’s 5th Avenue,” features a cash wheel with seven triggers for the spinning, and the Betty character shopping in swank Manhattan stores with her pooch Pudgy. Also on the V22/32—and on the Cash Connection wide-area link—is “Zoltan’s Fortune,” which uses several unique Bally game mechanics to transform the slot into a replica of an old-time fortune-teller machine. (Mitchell says the game designers took inspiration from the “Zoltar Speaks” fortune-telling machine at the center of the Tom Hanks film Big to create the game.) The main bonus events create clever sequences based on Zoltan telling the player’s fortune, such as looking into his crystal ball for the player’s award. The 50

Global Gaming Business OCTOBER 2014

“Look Into My Eyes” bonus has the player place hands on the interactive iDeck panel and mentally pick one of six cards. Zoltan pays a credit award after he ascertains the player’s card with an impressive bit of electronic sleight-of-hand. The Zoltan game also introduces a new feature called “Walking Wilds.” When wild symbols land on the reels during free games, they will “walk” in any direction, expanding to create blocks of wild symbols that can cover reels. The core V22/22 cabinet—in the unique “Hammerhead” configuration— is host to another new Bally licensed video slot, “The Blob.” Based on the 1950s sci-fi film, the game features campy bonus features with townspeople running to escape the growing alien blob. The “Growing Blob” feature awards higher bonuses the larger the alien becomes. The Blob is also connected to the Cash Connection wide-area progressive.

Exploiting Strengths Several G2E launches are meant to capitalize on what Bally has had the most success with in the past, in both game styles and game groups. For example, the company is calling on its prowess in the traditional high-denomination reel-spinner in a new multi-game unit on the Pro Curve cabinet, the format that includes curved video reels to mimic traditional spinning reels. “Playboy Club” is a two-game setup on the Curve, topped by a spinning wheel for bonuses. The two games are classic reel-spinners (with animation spicing up the spinning, thanks to the Curve video monitor) available in single-line or five-line setups. One is a three-coin multiplier; the other is a five-coin multi-

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GLOBAL GAMES 2014

Bonus features like “Miss Kay’s Turtle,” the “Duck Commander Wheel” and others draw from what is the most-watched reality cable TV show in history. Bally officials say they expect to host an appearance by some of the cast members at the booth.

plier. Denominations start at quarters and go up to $20,000. “We’re switching strategy on the Pro Curve from low-denomination, high-line games to high-denomination, low-line games,” explains Venneman. “Choices will include multiple line setups, and players are able to select the game, the line setup and the denomination.” Both games in the Playboy Club machine have progressive jackpots, hit by lining up three “Quick Hit” symbols on the center payline. The inclusion of the Quick Hit progressive brand and symbol is no coincidence. The Quick Hit progressive series has been one of Bally’s most popular. “It’s been an amazing brand for us,” says Mitchell. “We continue to hear from our customers that Quick Hit works, so we’re coming out with new brands, including the first core video Quick Hit games. It’s a question of exploiting our most popular home-grown brands.” In fact, at G2E, Bally will introduce new Quick Hit titles that feature the best of other home-grown Bally brands. “Quick Hit Cash Wizard” and “Quick Hit Cash Spin” combine the Quick Hit symbol-based progressive feature with two of Bally’s most popular titles. “Quick Hit Twin Fire” combines the progressive feature with a bonus ladder and the mini-bonuses of “Hot Shot,” one of the company’s most successful titles of the past two decades. Other home-grown Bally brands will appear on the V32 portrait-style cabinet. Among the highlighted brands will be “Diamond Winners,” “Blazing Inferno,” “Captain’s Gold”—featuring mystery “Super Symbols” that cover several reels—and Fu Lion, with the “Daisy Chain” wild feature that starts chain reactions to increase the number of wild symbols on the screen. Fu Lion is one of several new brands tailored for the Asian market in what Venneman says is a new effort to create regionalized content—one group of games designed specifically for Asian markets, another group for European markets. Finally, in addition to all these slot games, the enormous Bally booth will host the table-game innovations of the former SHFL entertainment and the latest advances of Bally’s industry-topping systems division. The e-table section will feature the Fusion product line, including “Fusion Hybrid,” “TableMaster Fusion” and “Fusion Virtual Multigame.” The Fusion Hybrid product connects up to four live-dealer table games with player betting terminals. Players can switch between and concurrently play baccarat, roulette and sic bo from the same terminal. TableMaster Fusion features a high-definition, 72-inch LCD display 52

Global Gaming Business OCTOBER 2014

with virtual dealers as well as 22-inch wide-screen player terminals with touchscreen betting, enhanced graphics and multiple side bets. At the show, TableMaster Fusion will feature blackjack and Three Card Poker. Fusion Virtual Multigame allows players to switch between roulette, sic bo and baccarat from the same terminal, increasing play with four different game options in one seat. On the system side, one featured product will be “Take ‘N Play,” a system that allows casinos to offer mobile devices—tablets at first—to players who would like to take their play session away from the slot floor to other approved gaming areas. Take ‘N Play allows the player to hold a tablet to the screen of a slot to have the current live game transferred to the mobile device, along with the credits. The screen of the machine goes gray to indicate that it is being played remotely. The player can then take the tablet anywhere within a resort that is approved for gaming, and continue the same game. It’s just one other product on what will be a milestone display for the newly diverse Bally, incorporating more product ranges than any other current supplier on a larger stage than anyone else will offer at the trade show. One could say it will be tough to beat, but considering the fact that Bally is in the process of being acquired by Scientific Games, many in the industry will look at this year’s amazing Bally lineup and wonder what new strengths will crop up for an even larger company next year.

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CadillaC JaCk ‘XStream’ Power The popular PowerXStream series, premium cabinets and new game mechanics head Cadillac Jack’s largest-ever display

ast year, Georgia-based slot supplier Cadillac Jack staged its first G2E exhibit as part of Canada’s Amaya Gaming Group, which acquired the company late in 2012. The company, traditionally a successful Class II supplier with strong markets in Alabama, California, Oklahoma and Mexico, has been making inroads into Class III markets, while vastly improving the number of channels for its content, thanks to the online, social and mobile networks of its new parent company. Last year, Cadillac Jack impressed operators with the innovative “PowerXStream” series of slots, with games like “Legend of the White Buffalo” and “Fire Wolf.” The series has been a high-earning hit for operators in all of the company’s markets. This year, the company is expanding the game library of the PowerXStream series with several new games taking advantage of a variety of innovative play mechanics. Games in the series feature several different unique reel configurations, including varying symbol sets—referring to number of symbols per reel, the games include 3-4-4-4-3, 4-4-3-4-4, 4-4-4-4-4; and 3-3-4-4-4 configurations. They are all “ways-to-win” setups, nearly all with wins occurring for adjacent symbols paying both left-to-right starting with the first reel and right-to-left starting with the fifth reel. The primary reel setups result in 576 possible ways to win on every spin. The series also employs five main mystery features, several being used as the central features for new game brands within the PowerXStream series: With “Reflex Wilds,” a full stack of wild symbols on either the second or fourth reel “reflects” to the other reel, making both wild. “Power Blocks” are oversized symbols that are three reels wide and four rows deep. They may land partially or full on the screen, amounting to a stack of three, six, nine or 12 symbols. “Streaming Stacks” are randomly chosen stacking symbols appearing at the beginning of a reel spin. “XStatic Wilds” are wild symbols that remain “static,” or locked in place. And “Turbo Boost” “boosts” the base game with mystery progressive awards. At G2E, Cadillac Jack will launch new PowerXStream games in these and other feature “families,” according to Eric Boese, vice president of game development and chief game designer for Cadillac Jack. “Last year, we showed a handful of games on PowerXStream, and over the last year, that handful of games has been very popular and successful,” Boese says. “They are at 90 percent of our properties, and at all of those properties, they are averaging more

Global Gaming Business OCTOBER 2014

than 50 percent above house average. So, naturally, a focus of our show is to build on that PowerXStream family.” Boese says PowerXStream has opened new doors for Cadillac Jack in both Class II and Class III markets, crediting the series for strides in California and Oklahoma in particular. “In California, these games have really opened doors for us,” he says, noting that the game series launch coincided with the awarding of the company’s new Class III license in the state. “For mixed floors using both Class II and Class III, they’re buying the same PowerXStream game from us in both configurations.” New PowerXStream games being launched at G2E in the Power Blocks feature brand include “Great Griffin,” “Dark Romance” and “Release the Kraken.” Boese notes that while other manufacturers have utilized floating blocks of stacked symbols, this series is the first to do it utilizing the 3-4-4-4-3 reel setup rather than a payline setup. “That mechanic, coupled with these big blocks, form highly compelling math models for a gambler-driven market,” Boese says. The game “Monarch Moon” introduces the Power Sync brand of games— also 576 ways to win—which uses a longer floating block of symbols than Power Blocks in a free-spin game, creating more anticipation for stacked wins as the reels spin. For the XStatic Wilds brand of PowerXStream, launch games include

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GLOBAL GAMES 2014

“

They are at 90 percent of our properties, and at all of those properties, they are averaging more than 50 percent above house average. So, naturally, a focus of our show is to build on that PowerXStream family. —Eric Boese, VP of Game

”

Development and Chief Game Designer, Cadillac Jack

“Monarch Sun” and “Thunder Bear.” In this game series, the unique 4-4-3-4-4 reel setup is used, which returns 720 ways to win for each spin. In the free spins, those “static” wilds quickly fill up the three-symbol middle reel, which opens the doors to a high volume of wins. The right-to-left/left-to-right pays add to the frequency of big wins in the volatile program. One more family of PowerXStream games being launched at G2E is called “Symbol Surge.” On a 3-3-4-4-4 reel layout, it’s the only PowerXStream launch game to pay wins only left to right. However, the central feature makes up for that, with wild symbols “surging” in a burst outward in multiple directions to create large sections of wild symbols.

Progressive Power The PowerXStream series accompanies premium games in several different configurations, including those in the popular Stratos cabinet launched last year. Cadillac Jack will display three game cabinets at G2E, which the company says are all engineered to increase game play through dynamic lighting, tightly integrated software and immersive sound. Heading up the new cabinets is Genesis Halo. Building on the popularity of Cadillac Jack’s original Genesis Chrome cabinet, the Genesis Halo integrates a sophisticated game-controlled lighting package to the base Genesis cabinet. Genesis Halo is loaded with features that enhance player experience, including brilliant effects and attract modes which draw players to the game while the game-driven lighting keeps the player engaged. There also is a new Stratus cabinet, with a new façade and light setup that Boese says will make it more competitive in the premium space. The company is launching the cabinet with two new game families. “Turbo Reels” is a new family of games in which the player climbs a progressive ladder bonus during a free-spin event that guarantees one of the progressives. When reels land on arrows, the player moves up the ladder. In “Winferno,” the XStatic Wilds feature is combined with a multi-level progressive feature, which can be configured as a wide-area prize. The series features dynamic animation, including flame effects, and the towering Winferno Boost progressive. Available as a linked progressive or stand-alone, Win-

Global Gaming Business OCTOBER 2014

ferno bundles the unique PowerXStream pay mechanic with random progressives in a volcano-themed experience. Finally, Cadillac Jack will launch a new progressive series called “Turbo Boost” at the show. The Turbo Boost feature is a two-level, three-level of fourlevel mystery progressive, with all progressives containing a “Must Hit By” jackpot trigger. A proprietary system randomly increments the progressive at an accelerated rate as it approaches the “Must Hit By” level—boosting at increments of $1 or higher if the casino chooses—accompanied, of course, by all the bells and whistles to let players know the progressive is approaching. That feature also means this progressive system awards the jackpots faster than any other “Must Hit By” system out there, Boese says. Turbo Boost will fit on any core game Cadillac Jack offers. This year’s show will be an important showcase for the company as it moves into new markets. Boese says the company’s California market is one that is ripe for expansion. “For the most part, our games are core gambler-driven games,” he says, “and we feel California is a gambler’s market.” He adds that the company is a year or two away from entering the Nevada market, where the gambler will be a little different. “As that time draws closer, we’ll start designing more of those time-on-device style games that Nevada players like,” he says. The company will be growing into commercial markets in the Midwest and South at the same time. “It’s a really exciting time for us at Cadillac Jack,” says Boese. “We’re really excited about getting into all these new markets, learning the new players in these markets, and learning what those players want.” Meanwhile, the company will continue to export its content to new channels via parent company Amaya. “With them having more of an online and mobile focus, it’s been great for us, because we’re getting many of our best games porting over to online and mobile segments,” Boese says, adding that going forward, the company will be able to freely transfer content among the various channels. But first things first—with more than 85 new games and new cabinets, this is Cadillac Jack’s biggest G2E collection to date. “It’s not just the biggest, but the best in terms of quality,” says Boese. “We’re excited.”

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CASino

Alternative Gaming Solutions

TeChnoloGy Give Me 5

Casino Technology, now marking its 15th year in business, and its U.S. partner Alto Gaming branch out in new markets

“P

layers are driven by games.” That’s the oft-cited motto of Casino Technology, the Bulgariabased gaming company that’s developed more than 500 slot titles. But the tag will take on a different meaning at G2E 2014. Casino Technology—which marks its 15th year in business this year—will put the spotlight on its Big 5 suite of multichannel gaming systems, designed to bridge the divide between land-based gaming and online/mobile platforms. The Big 5—named for the great beasts of the wild—is comprised of: The Rhino casino management system, designed to improve control on the slot floor and optimize management and operational processes, and to provide player tracking and loyalty program management; The Leopard online gaming platform, which lets operators and players choose among multiple casino games and products and integrates into a single casino lobby and wallet; The Lion money management system, which enables cash-in/cash-out payment transactions from physical cash into electronic money in a closed-loop environment; The Elephant remote game server, which can distribute content for video slots, bingo and roulette as well as third-party content like virtual sports, sports betting, and live games to all existing gaming channels, from online and mobile gaming to traditional VLTs; and, The Buffalo universal jackpot server, which links online and land-based groups of machines to the same jackpot, and supports both LAN and WAP. Konrad Gill, iGaming director for Casino Technology’s new interactive division, says the Big 5 provides a turn-key solution for land-based operators in an increasingly digital age. Importantly for players, it’s designed to make it easier to jump on and play at will, from multiple locations, adds Casino Technology Vice President Rossi McKee. 58

Global Gaming Business OCTOBER 2014

“These five systems create a seamless environment for the player so he can access his favorite games from any device through a common player account,” McKee says. “All his loyalty points and credits are available to him through this account.” The components are already established in Bulgaria and other jurisdictions in Eastern Europe, where Casino Technology is the top slot supplier. They can be used together or separately, depending on market demands and regulatory requirements. “In the U.S. environment, it can be applicable to social gaming, playfor-fun outside the casino, or playing within the boundaries of the casino on game devices of any nature, from slot machines to mobile devices or tablets,” says McKee. “We hope it will have its opportunity to further expand into installations here in the U.S. where it is legal, possibly in some tribal and Native American casinos,” she says. “It provides a good opportunity for operators to bring brick-and-mortar operations to the online world and vice versa, and make everything work together.”

Making Tracks Casino Technology and its stateside partner, Las Vegas-based Alternative Gaming Solutions, or Alto Gaming, will occupy adjacent booths at the G2E show. The companies joined forces in 2011 to match Casino Technology’s international savvy and success as a supplier to a U.S.-based manufacturer, with the goal of breaking into Class III markets in the U.S. and also branching out in Asia. The companies have been encouraged by their reception among tribes in California and Oklahoma. “The time to achieve a better presence in U.S. was right, with Alto Gaming on board and offering to partner and license the technology and games from Casino Technology for the U.S.,” McKee observes. “The performance was good, and indicated players’ acceptance of the games, which motivated us to continue and develop new games and technology for the U.S.” Together the companies will debut a selection new games tailored to the U.S. market, some of which will be available for installation immediately after G2E. These include a series of progressive Asian-themed games already offered in Macau, with slightly customized math and graphics for the U.S. “Peacock and Dragon” and “The Five Blessings” are available in stand-

A th

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Casino Technology and its stateside partner, Las Vegas-based Alternative Gaming Solutions, or Alto Gaming, will occupy adjacent booths at the G2E show. The companies joined forces in 2011 to match Casino Technology’s international savvy and success as a supplier to a U.S.-based manufacturer, with the goal of breaking into Class III markets in the U.S. and also branching out in Asia. says McKee. Because that experience varies around the world, from player to player and even moment to moment, it requires broad market experience and understanding to deliver the right formula. “It is always tricky and difficult to define the player expectation,” says McKee. “Does she go to the casino for fun or entertainment? Is she playing in Oklahoma or California, in Atlantic City or Las Vegas? The players have different objectives. But underlying the development of a great product line is unique math and a unique concept that creates that adrenaline rush the player is looking for and keeps them in the game. Packaging all these things together makes the person come back and play again and again.” In addition to penetrating new markets, the virtual market offers great potential, says McKee. “Coming from the land-based world and knowing what the land-based operator is looking for, then adding the online parts—this has been really very well accepted,” she says. “The next step and opportunity for us is going to be offering the Big 5—and the opportunity to extend the land-based to the online world. That will be our focus for the next year and probably several years. We believe the future of gaming is going to be the seamless player experience.” —by Marjorie Preston

alone or linked-progressive formats. The partners will also offer the latest versions of the popular Gamopolis franchise and new themed games from the hit branded series, Penthouse Slots. “It is really a very rich portfolio of games, already enjoying great success and popularity in other parts of the world, now customized especially for North America,” says McKee. On the hardware side, Casino Technology and Alto Gaming will also present their latest cabinet: a space-saving, ergonomically designed upright called the Aurora. The Aurora has a 24-inch high-definition panorama monitor, an LED keyboard and an “electroluminescent display,” according to the company. Along with rapid expansion in Peru, Chile, Colombia and other Latin American markets as well as North America, the companies are busy. They are in the process of establishing a presence in Asian markets including Macau and the Philippines.“We are already in Cambodia, and everything is in place in Macau, where we are waiting for final commission approval,” says McKee.

Meeting Expectations As ever, as delivery methods evolve, the value remains in the player experience,

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GTECH GLOBAL GAMES 2014

The Third Dimension GTECH’s ‘True 3D’ offers organic boost ahead of the well-known pending acquisition

y now, everyone knows that the world’s largest slot manufacturer, IGT, is being acquired by GTECH, one of the traditional powerhouses of the government-sponsored lottery industry. But what some may not know is that GTECH was well on its way to its own new identity in the slot market before anyone ever mentioned M&A activity. The slot business of Italy-based GTECH S.p.A., of course, had a long pedigree—not only in the Spielo brand of slots familiar to the Canadian VLT market, but in what was once the Atronic brand, which grew from roots in Austria to popularity across European markets, and then in the U.S. through an Arizona-based subsidiary. By the time GTECH acquired Spielo International— which had acquired Atronic previously—the Spielo brand of casino slots had gained a following of its own through innovative products like the Deal Or No Deal branded franchise of slots, a series of slots based on the PopCap internet games, and the Passion series of stepper games. At last year’s G2E, the game design capabilities of the former Spielo reached a new zenith with the game that was the absolute hit of the show, “Sphinx 3D.” That game introduced what the company calls “True 3D,” a technology that enables 3D graphics as authentic as any film at which you are distributed 3D glasses—maybe more so. This “glasses-free 3D” enabled an elaborate Sphinx 3D game that takes the player on a journey through an ancient Egyptian village and inside the Sphinx monument to explore various chambers for bonus credits. Mike Brennan, director of product marketing for GTECH, says the company had originally envisioned the True 3D technology as the basis of niche or novelty games. Then came G2E. “The reception of Sphinx 3D exceeded our expectations,” Brennan says. “Based on feedback from casino operators, we decided we had something that wasn’t a niche, but had widespread appeal. It’s been a great launch of the product from coast to coast.”

More 3D With Sphinx 3D an unqualified hit, GTECH’s game designers quickly got busy creating a complete series of True 3D slot games. “We realized more of the market could handle 3D, and since enthusiasm and performance were still high, we 60

Global Gaming Business OCTOBER 2014

decided to be aggressive,” says Brennan. “At G2E, we’ll launch four new True 3D titles, all to be available by early 2015. “Our content teams did a fantastic job of realizing we had some exclusive market share and an exclusive opportunity, so we decided to leverage that for multiple player segments. 3D doesn’t have to be for this entertainment-style mass-market player only.” Field analysis, in fact, has revealed that some play the games with the adjustable 3D effect very low, a sign that players like the math models as much as they like the game’s 3D and bonus journeys. With that in mind, three of the new True 3D games being launched are designed to specifically target the core gambler, “without negatively surprising any player segment,” Brennan says. “Dragon’s Temple 3D” is based on one of GTECH’s top three core games historically. The 3D technology in this game is used to great effect in the basic presentation of the reels as three scrolls, while expanding wild dragon symbols and an infrequent free-spin event contribute to a unique combination of a high-hit-frequency base game with a volatile bonus. “Dreams of Asia 3D” is based on a more volatile math model with a high bonus focus. Players who like more entertainment-based games are served by the first game in the PopCap series to be given the True 3D treatment, “Bejeweled 3D.”

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GLOBAL GAMES 2014

Zuma Adventures offers two unique base games, including a never-seen-before reel spin mechanic on one title, and three community bonuses. Not only does the overhead display showcase bonuses, but individual events on the screen provide players with extras like wilds and qualification hearts through cute frog events.

All base-game objects are in 3D, with a four-by-five field of cascading reels, and a 3D bonus in which the technology is used to masterful effect—the player travels through a “Warp Tunnel” collecting bonus credits, and at certain junctures can choose to go left or right by moving his head. Another bonus sequence takes the player into the “Bejeweled Castle,” which, in the internet PopCap game, is simply background art. GTECH has used the True 3D technology to take the player inside the castle rooms, created in intricate 3D detail, to pick credit prizes hidden behind objects. Other True 3D titles to be launched at the show include “Aladdin’s Fortune 3D” and another being kept under wraps until show time.

The Community Treatment GTECH bought in big to the community-style game two years ago with “Deal Or No Deal Join ‘N Play,” and according to Brennan, customer research has confirmed that players still want the community experience. “Others have bowed out of the community-style game, but we feel it’s still viable,” he says. “There is a certain percentage of players who still want that community experience.” As always, customer research dictated the exact community experience to provide players, and the best format for casino operators: three games instead of the five-game setup used in Join ‘N Play. “We learned some really interesting things, and have deployed player-friendly game mechanics across our community games,” Brennan says. GTECH arrives at G2E with several new community-style games, including the first two PopCap games to receive the community treatment, “Bejeweled Community” and “Zuma Adventures.” Bejeweled Community features two entertaining base games as well as a variety of randomly triggered Bejeweled Bonuses, including a two-tiered community bonus with a “Take or Risk” feature in the second level. A mystery bonus allows the player to pick “Chance” for a normal free-spin round or “Skill,” 62

Global Gaming Business OCTOBER 2014

which triggers an actual skill-based game of Bejeweled. Zuma Adventures offers two unique base games, including a never-seen-before reel spin mechanic on one title, and three community bonuses. Not only does the overhead display showcase bonuses, but individual events on the screen provide players with extras like wilds and qualification hearts through cute frog events.

Deal and Drop As has been the case for the better part of a decade, GTECH uses the G2E show to add to its growing library of games based on producer Endemol’s Deal Or No Deal TV game show. “Deal Or No Deal Las Vegas!” is the first in the game series to be presented on GTECH’s MaXVusion cabinet, the large-top-box presentation originally launched with “Zuma” and other PopCap titles. The latest to feature TV host Howie Mandell and other stars of the show, the game sets the basic game-show “Briefcase Bonus” from the show against a glamorous Las Vegas backdrop. Two base games share a unique middle reel that only contains wilds and bonus triggers. The bonus is played during and intermittently throughout the base game. “It’s the first time we’ve had a persistent bonus in a Deal Or No Deal game,” Brennan says. “You play the bonus while you’re playing the base game.” This year, the Deal game is accompanied by a new branded slot based on another Endemol game show, The Money Drop. While the game itself was on the air in the U.S. previously and is still on internationally, it was the game mechanism that could be gleaned from the show that attracted GTECH, according to Brennan. The game involves a series of of player’s choice and risk propositions, in which each player can use strategy and risk assessment to target prizes and progressives.

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GLOBAL GAMES 2014

Core Strength GTECH’s show lineup is rounded out by a complete portfolio of core games for the North American market, including new titles in each basic game category. In every case, there is a special feature that sets the game apart. GTECH will evolve some current popular core game families in new themes. There’s a new “Wild Stays Until It Pays” title, “Queen of Olympus,” where stacks of wilds remain on-screen until they contribute to a win. And the company’s current top game family, Trigger Tiles, will be featured in two new game themes, “Wild Nymph” and “Uncovering Egypt,” that add new bonuses to the popular binding mechanic. (Uncovering Egypt features a very entertaining “Excavation Bonus.”) According to Brennan, the winner in the manufacturer’s player focus groups this quarter was “Xanadu,” a game with a one-symbol bonus trigger that turns any reel it lands on into a mini scrolling bonus selector. Another standout is “Elven Gold,” with an all-or-nothing shell-game bonus and interactive free spins. Additionally, GTECH will unveil new games in its Passion high-denomination stepper series, including “Queen of Egypt,” which features a sixth reel that triggers a mechanical bonus wheel. Brennan says the company continues to concentrate its focus on core games this year as much as any of the licensed series. “If you don’t have good core content, it’s hard to make good premium content,” he says. “With our core games, we refuse to try to imitate or be a me-too player. Our creative people really strive to bring forward unique features.” Brennan says the approach led to 2013 being the company’s best year for sold games in memory, and number of hit games as well.

Other Channels In addition to the casino games, GTECH Interactive will display a complete portfolio of games, systems and services designed to work individually or together. The company’s interactive products include solutions for poker, 64

Global Gaming Business OCTOBER 2014

GTECH will unveil new games in its Passion highdenomination stepper series, including “Queen of Egypt,” which features a sixth reel that triggers a mechanical bonus wheel.

casino, bingo, sports betting and lottery markets. This year, the interactive division will launch a new betting platform called “WagerWise,” a poker app for tablets; and GTECH’s play-for-fun and virtual currency solutions. All games will be available to connect directly to the customer platform or through GTECH’s Player Account Management system, an innovative solution that offers a single 360-degree view of the player. GTECH also is launching linked jackpot products including “Action Jackpots,” a novelty product offering four different progressive links tied into one gaming machine; and “Peruvian Riches,” a mystery jackpot for the Latin American market that can be run on nearly any GTECH core game. Multi-games on display will include the new prodiGi Vu “My Choice,” which offers nine different suites with four popular and proven games. Finally, the systems division will showcase a range of modules for the GTECH Galaxis casino management system, “JP2go,” a turn-key stand-alone jackpot system, and the Intelligen central lottery system. This year’s GTECH booth also will feature a social area called the Orange Lounge, where GTECH’s customers can connect with their favorite social networks. All this adds up to the largest-yet display of GTECH’s casino content and products. Regardless of what the GTECH trade-show display will look like in the future, attendees will certainly be impressed with the present.

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GLOBAL GAMES 2014

IncredIble

TechnologIes Proven Success Two years after its first G2E, Incredible Technologies to show a new cabinet and proven high-earning games

t was two years ago that Illinois-based Incredible Technologies—known then as the largest U.S. manufacturer of coin-operated amusement games and the producer of the famous “Golden Tee Golf” game popular from arcades to bars—first arrived at Global Gaming Expo with proprietary casino slot games. Last year, IT arrived at G2E with a couple of hit games under its belt, and a few new, untested games, but in the ensuing year, the company has scored more hits, notably with what is now its sole licensed brand, “Archie Money Funnies,” as the company moved to a new headquarters building and focused on spreading its games to new jurisdictions. This year, Incredible Technologies arrives at G2E with games that have been field-tested and have shown to be proven earners—all in a new, state-of-the-art cabinet that places the company’s games on par with all the more seasoned slot-makers. “In years past, we’ve brought games that have not been proven as winners yet,” comments Caitlin Harte, marketing associate for Incredible Technologies. “We haven’t had the catalogue to back up a new cabinet. This year, we’re only bringing proven performers that have gone through our six-month beta test market. “We’re happy to say that we have a catalogue of games that can back up the amount of properties we’re installed at.” That would be a total of 1,500 games, at more than 150 casino sites in 16 states, so far. “Things in the last year have been moving and grooving for us,” Harte says. “We’re seeing more successful, longer-lasting titles on the floor.” Those games include “Crazy Money” and “King of Bling,” the company’s first two hit titles, and “Leonidas,” which Harte says has resonated with players. “Leonidas had the most player uploads to YouTube,” she says. “We read the player forums, and they’re

Global Gaming Business OCTOBER 2014

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GLOBAL GAMES 2014

“Lady of the Dead” is a 25-line E-Play game tailored for Latin American markets, celebrating Dia de Muertos (Day of the Dead). The graphics feature authentic imagery associated with Day of the Dead celebrations, along with game features like a three-level progressive, random “Popping Wilds” and full-reel Lady of the Dead top-paying symbols. talking about the game. It’s cool for a small company like us to see things like that.” Archie Money Funnies, based on the legendary comic strip, has been an “overwhelming success,” according to Harte. “It was a game that we weren’t sure how the public was going to react to, but it seems to be striking a chord with players,” she says. “It’s earning like crazy, and we’re installing it across the country.” Over the past year, as game successes appeared, Incredible Technologies became much more focused on sustaining that success with new games. The company hired Jim Palermo, the former director of product development for WMS Gaming, as IT’s new vice president of product development. “As we are gaining traction in the industry, we wanted to bring in someone from one of the larger companies who had a whole lot of experience in the game development process,” says Richard Ditton, co-founder and executive vice president of Incredible Technologies. Palermo says IT’s product sold him on the company. “One of the decisions I had to make was where was I heading after WMS,” he explains. “Looking what they were developing, I could really see where this company was going to make a big impact. I saw a new platform. I saw a team that had a couple of years experience in gaming under their belt. And I saw the ability to make a pretty big impact in the market.” Palermo split IT’s slot product into three game series—E-Play, for the entertainment series of low-volatility games; V-Pro, with higher volatility; and the I-Series, “our Innovation Collection,” says Harte, “which we’ve been known for with King of Bling, Crazy Money, and the crazy spinning reels and sidewinders.” “Jim has really helped with product segmentation,” says Harte. “We’re hoping it becomes clear to players that we have products that are for everybody. With the segmentation, we’re making it clear that if you sit at an Archie 68

Global Gaming Business OCTOBER 2014

Money Funnies game, you’re not going to get your butt kicked—but if you sit at a Leonidas game, you might, but you may hit big wins as well.”

The Infiniti U23 One of the drawbacks faced by IT in its first years as a casino supplier has been the presentation—Harte says the original hardware limited game designers as to what they could do. The new games being brought to G2E this year were created on a new cabinet to be unveiled at the show. Called Infiniti U23, the state-of-the-art cabinet features two horizontal 23-inch touch-screen monitors in a sleek, ergonomic setup. Highlights to game visuals are provide by “Intelligent Bank Lighting” that provides in-game, multi-colored lighting displays, synchronized and sequenced according to game events. The Infiniti U23 also features a built-in digital signage support system—a 55-inch overhead LCD display compatible with the company’s IT Simple Sign Display kits, allowing the casino to customize messages, and a premium sound package. “It’s a simple sign package that makes it very affordable for the operator to add on marketing,” says Palermo. “They can use in-house signs that fit into our stands very easily.” Harte says the new cabinet has freed IT’s game designers to produce innovative new core games. “Now, we have the capability of doing things on the top box that we didn’t have before,” she explains. “We can do wheel-spinning, progressives and other features we haven’t been able to do because we haven’t had the fast enough hardware inside.” The comparisons to IT’s original cabinet, the U2, show night-and-day results, with games overall earning about 250 percent higher on Infiniti U23 than on the former cabinet. Tests of established games like Herd and Crazy Money show the same games on the new cabinet earning about 50 percent higher than the originals.

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OTHER AGENCIES CAN LEAVE YOU

LOST IN THE

“With the cabinet, we’re proving to the public that we’re investing in technology; we’re not just sitting back watching,” says Harte.

Complete Lineup The new cabinet has allowed IT to expand its library of proven games. IT is bringing game banks on the Infiniti cabinet in all of Palermo’s new game categories. Highlights include “Lion’s Roar,” the first “ways to win” game from IT. A four-by-five screen pays for adjacent symbols in the non-payline game, for a total of 1,024 possible ways to win on each spin. A free-spin bonus round occurs in one of three different “bonus worlds”—Kenya, Siberia or the Amazon. Each environment includes different bonus features like mystery wilds and multipliers. Free spins can retrigger up to a maximum 100 free games. “The Quest of Perseus” recreates the mythical Greek story of Medusa and Perseus, who battles the dreaded monster in a Free Spin Battle with stacked “Perseus” symbols providing extra wins. “Lady of the Dead” is a 25-line E-Play game tailored for Latin American markets, celebrating Dia de Muertos (Day of the Dead). The graphics feature authentic imagery associated with Day of the Dead celebrations, along with game features like a three-level progressive, random “Popping Wilds” and full-reel Lady of the Dead top-paying symbols. If the player collects 25 Lady of the Dead symbols, it triggers a spin on a bonus wheel that can lead to one of the progressives. The Latin American theme, says Palermo, coin-

cides nicely with the recent awarding of IT’s gaming license in Peru. He says the company has a big following in the Miami parimutuel casinos as well, where he predicts the game will do extremely well. “Fortuno the Great” is a 25-line game recreating the experience of old-time carnival magic, with a three-level progressive, Popping Wilds and full symbol reels, similar to Lady of the Dead. “Cash Fairies” is a 30-line E-Play game built around mischievous pixies that meet on the reels to trigger one of two second-screen picking games. Behind each pick are instant credits, additional picks and doors to additional bonus rounds. A free-spin round can be retriggered up to 100 free games. “Medieval Gold” is a renaissance-themed game that is packed with a lot of special features like “Archer Random Rewards;” mystery events like “King Me,” which upgrades lower-paying symbols to King symbols; and “Royal Wilds,” which replaces all symbols on the middle three reels with wild symbols. The random archer arrow can also hit a bull’s-eye to trigger one of the progressives. “Fired Up” features a specialty top box holding the “Power Tower Wheel,” a combination wheelspin and ladder-style bonus. “Money Inferno” is a sequel to IT’s popular “Crazy Money,” including a “Money Catch” bonus in which players must tap the screen to “catch” flying dollar bills. IT includes many of the special features of Crazy Money, such as “Angle Pays.” “Our lineup competes well with any of the other companies,” says Ditton. “Every game you will see has been on test and has earned well.” Incredible Technologies, he says, is set to fire up casino floors. And YouTube.

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GLOBAL GAMES 2014

InspIred

GamInG Group Total Eclipse Inspired Gaming Group’s Eclipse cabinet with swipeable technology is back in 2014, along with more multi-channel content, virtual sports and more.

n 2013, Inspired Gaming Group rolled out its all-new Eclipse slot cabinet, with features like a swipeable screen, enhanced interactivity and the ability to “remember” the player and thereby suggest other games based on past choices. With four linear HD screens and a main menu that worked much like a smart phone or tablet, the Eclipse enabled players to navigate among dozens of game choices at a simple finger-stroke. Other features included the industry’s first combined touch-screen video buttons and physical buttons with video screens. At the time, U.K.-based Inspired hailed the Eclipse as “a 360degree product evolution” and “a world first.” More than a year later, the company’s confidence in the Eclipse has been more than justified. Since August 2013, Inspired Gaming has deployed more than 10,000 of the terminals with major U.K. operators including William Hill, Paddy Power and Betfred. In addition, the company has just extended its long-term partnership with William Hill for five more years— “a testament to the quality of Inspired’s innovation, operational services and how it supports its own customer growth,” says Inspired Gaming CEO Luke Alvarez. The new contract also includes over 4,000 additional Eclipse cabinets in William Hill’s 2,400 licensed betting offices.

Crossing Channels Inspired was one of the first suppliers to launch content simultaneously across all gaming channels—VLT, mobile and online—in the United Kingdom. Building on this foundation, the company will exhibit its latest innovations in cross-channel entertainment at G2E, including the new mobile HTML5 games “White Knight” and “Goddess of the Amazon,” which operate on its remote game server (RGS), Virgo. Inspired also will present its 10th virtual sport, “Virtual Basketball,” and its multi-game virtual football product, which is currently live in China. “The power of Inspired’s leading Virtual Sports proposition can be seen in Italy,” says Alvarez, “where it has supported the development of a €1billion market, from nothing, in just six months.” With years of experience installing and operating wide-area distributed VLTs, the company will be showing its range of networked gaming products for 70

Global Gaming Business OCTOBER 2014

a number of regulated markets including the U.K., Italy and Colombia. Inspired also will be showcasing new slot games. Company representatives will offer demonstrations of Inspired’s GSA-compliant SBG VLT technology for private or government lottery operators, including its Core CDW (Centrally Determined Wins) system.

Conquering Italy In Italy, Inspired provides the VLT system, cabinets and games to operators such as Sisal, Betplus, Lottomatica and HBG, and will soon go live with Cogetech. It was the second company to go live with VLT machines back in 2010, and is one of the three major VLT suppliers to the market, with more than 10,000 contracted VLT server-based machines. “We continually strive to keep our Italian content offering fresh,” Alvarez says, “and just recently released two new titles, with more to come during the course of the year.” For Virtual Sports, Inspired has a market share of more than 90 percent in Italy and the biggest virtual games portfolio on the market. In the last two years, it has signed Virtual Sports deals in Italy with all major Italian operators including Snai, Lottomatica, SISAL, Eurobet, Cogetech, Intralot, Gamenet and Microgame, Sommettendo.it and Betflag. Since the end of 2013, Inspired reports it has had more than 10 million bets per month on its Virtual Sports products across its combined retail, online and mobile channels. And this year, Inspired will also launch a new upgraded version of its world leading Virtual Football product for Italian players, with enhanced graphics and extra bet markets. By the end of the year it anticipates that more than 10,000 venues will be live with Inspired’s products. Just as importantly, notes Alvarez, the company is touting its new U.K. Code of Conduct functionality for player protection and responsible gambling software. Having launched the Code of Conduct (which proscribes responsible gambling times and spend limits) in March 2014, Inspired is working with the U.K. government and the bookmaking industry to develop additional player protection measures, which are due to be launched in 2015.

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“Inspired is leading the industry response to responsible gambling,” says Alvarez. “Thanks to Inspired’s Open SBG/VLT Core technology, new responsible gaming software can be deployed quickly via the network, and operators and regulators can segment data by any criteria—for example, by game, machine, player, average stake, and time on device.”

Expansion Plans Inspired is the leading EU supplier of next-generation SBG Video Lottery technology, and the leading supplier worldwide of Virtual Sports for lottery and sports betting across 30,000 venues and over 200 websites in 33 countries. It is rapidly expanding its Virtual Sports footprint as legislation allows. In March, Inspired signed an exclusive agreement with R.Franco to supply its Open VLT Core technology platform and games in Spain. In June it also announced its first Virtual Sports deal in Colombia, with GENTEC (the Betancur Group). Also in June, it announced a deal with William Hill to supply premium HTML5 games to the bookmaker’s mobile gaming platform, and it will be announcing more deals throughout 2014. With its already strong VLT presence in Colombia, Inspired will further expand into Virtual Sports and single-site VLTs. Using Colombia as the beachhead into Latin America, Inspired will choose more countries offering growth potential to the company, officials said. In the U.S., Inspired is already live with Sabre Multi-Win Roulette, its casino electronic table game product, and 2014 will see expansion of this product, as well the launch of its cross-channel Virtual Sports suite across selected jurisdictions. —by Marjorie Preston

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InternatIonal Game technoloGy Content King IGT arrives at G2E with a collection that shows it has no intention of relinquishing its market leadership

mid all the speculation over what will become of leading slot manufacturer International Game Technology after next year’s expected closing of its acquisition by GTECH, one fact has been underplayed by many: In the sole consideration of an entire library of slot machine content, there is still no one better than IGT. Through all the board of director challenges, surges in competition and uncertainty in the market, the R&D machine built long ago by IGT has just kept on churning, with dozens of new concepts every year joining reinventions and improvements of classic games. More of those reinventions appear this year with the G2E debut of something that has been rare in the slot market: a major platform release in the mechanical reel-spinning genre. In this case, it is the next generation of what has been IGT’s most stalwart product, the workhorse S2000 line of mechanical stepper slots. IGT is using many of the most familiar S2000 games to help launch S3000, the company’s next generation of reelspinners and its next workhorse series. Around 30 iconic brands will accompany 24 new reel-spinning games designed specifically for S3000 in what IGT officials predict will fuel a rejuvenation of the reel-spinning genre in casinos. “To reference Mark Twain, I think reports of the death of the mechanical reel player were highly exaggerated,” says Joe Sigrist, vice president of product management at IGT. “And I think our investment in S3000, and bringing over games that are iconic into that cabinet along with new games, speaks to the fact there is still a percentage of the floor—let’s call it a third—that is definitely a mechanical reel section, that hasn’t had innovation in a while, and is primed for a refresh.” Ryan Griffin, director of core product management at IGT, adds that the S2000 series still has some 90,000 units in the field, representing an enormous potential block of sales. “We’ve been working on this platform for four years,” Griffin says, “and it is creating a new paradigm. This is going to be a special time for the industry.” Griffin acknowledges that players of those 90,000 units are fiercely loyal to 72

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that particular cabinet style. How do they know players will go for the new format? For one thing, they asked them. IGT brought in players whose history showed them to be stalwart stepper players, and had them play their favorite IGT reel-spinning games in both S2000 and S3000 versions. “The players were all hard-core Double Diamond players— all loyal high-denomination players,” explains Dennis K. Meade, the legendary IGT inventor and game designer behind many of the slotmaker’s most iconic stepper games. “All of them preferred the S3000.” Mead, by the way, is the other reason IGT officials expect to crack a good portion of those 90,000 replacement game orders. The holder of numerous patents on technology used in the S2000, Mead—who was the lead designer on classic games including Double Diamond, Red, White & Blue and Wild Cherry— was instrumental in the development of S3000. The designer, who knows every detail of S2000 better than perhaps anyone on the planet, painstakingly pored over every detail of S3000 to update the platform without changing its essential appeal or familiarity. Reel symbols are bright and back-lit, but are instantly recognizable. The button panel is nearly identical—except for the inclusion of “Bet Up” and “Bet Down” buttons, which Mead says makes it easier for the player to alter wagers. Volume and brightness controls offer additional player comfort, he says. The platform includes a state-of-the-art sound system, and banked machines can be synched up to deliver an attention-grabbing light and music show.

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Called “Powerhits,” the game—fully converged for play on land, online and for mobile wager online where allowed—provides compelling visuals, and a built-in incentive for max bets.

When the work was done, Mead placed those diehard stepper fans in front of a classic, familiar S2000 Double Diamond and the S3000 version, identical in features and program math, but modernized. Players went for the new version every time. Griffin says that in addition to new games, IGT can bring 100 existing trademarks forward to S3000. “This is the most advanced stepper format in the market, combined with those trademarks,” he says. Sigrist says that in addition to updating classics and creating new stepper games, IGT’s product development team is using the launch of S3000 to reprise an iconic brand, the “Quartermania” wide-area progressive three-reel quarter slots. “That’s an example of a game that people remember lovingly,” Sigrist says. “But on that cabinet, and with features like video celebrations, for us it is evidence of what we have in our portfolio that we can really leverage on the gambling side.” IGT’s first 50 new S3000 games will include classic three-reel games; new three-reel, single-line games; and first-to-market five-reel multi-line games. The lineup includes classics Double Diamond, Double Gold, Wild Cherry, Super Times Pay and others. New games include “Red Hot Tamales” and “Triple Gold.” S3000 is part of a refocus on “the roots of gambling,” according to Sigrist. “We’re excited to bring out a new cabinet that’s tailored exactly for mechanical reel players but also brings that exciting newness to mechanical reel games.”

Building the Core The new mechanical reel platform is the biggest story this year for IGT’s Core Games division, but it’s certainly not the only one. New content is spread over numerous innovative game series and game families. “I know everyone says that,” says Griffin, “but what you’re going to see at the show is really a host of new games, more than we’ve done historically. There is an unprecedented number of new game families featuring innovative new game mechanics.” Griffin, like Sigrist, says the focus has been “going back to our roots” on the core side. “What I mean by that is that we are going back to growing our portfolio offering of true gambling games. We still own the entertainment space, but we’re moving toward high volatility.” On tap for G2E launch are new versions of IGT classic core video slots including “Wolf Run” and “Enchanted Unicorn.”

“We’re bringing those games players have been loyal to for years back with new mechanics,” says Griffin, “new games that are more rewarding experiences, not only in the bonus but in the base games as well—more true gambling games.” Many of those games are in a series called the “Dynasty Edition,” building upon the cross-platform content from Wolf Run, Siberian Storm and Treasure of Troy. The series merges original game features and math with enhanced characteristics, such as amplified bonus content, pace and visuals. Wolf Run and Enchanted Unicorn are also used as the first base games in the new series “Hot Roulette,” which combines the themes with bonus content that gives players a touch-screen game of roulette in the top box. It’s a follow-up to the successful “Hot Roll” feature offering a bonus dice game for core video base games. Griffin says the bonus roulette wheel is a “fair-chance wheel,” not weighted to favor any particular number. An entertaining feature has the player either “throw” the roulette ball to the top screen or “pick it up” and “drop” it on the wheel. “Hot 21” applies the same bonus concept to a game of blackjack, which plays out in that entry of the Dynasty Series. “King Reels” is an innovative reel configuration displaying a total of 90 paylines—30 in the base game and 60 on the top box. The two themes launching the series are “Turquoise Princess” and “Farmer’s Daughter,” featuring classic comical farmer’s-daughter gags in funny animation with goofy cartoon music. “Tokidoki” brings the famous Japanese lifestyle brand to the slot floor with a game featuring the brand’s most beloved characters, including Moofia, Donutella & Her Sweet Friends, UnicornO, Cactus Friends and Punkstar. In what Griffin calls a “hardcore gambler game,” the slot features a 1,024-ways-to-win setup. In addition to individual core games, IGT will launch several new game series, each featuring an innovative play mechanic. The “Mega Free Games” series features bonus triggers yielding up to a maximum of 450 free games, with a OCTOBER 2014 www.ggbmagazine.com

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Wolf Run and Enchanted Unicorn are also used as the first base games in the new series “Hot Roulette,” which combines the themes with bonus content that gives players a touch-screen game of roulette in the top box.

twist—the player is given a volatility choice from several free-spin/multiplier combinations. Titles like “Panda Park” and “Fortune Trader” offer free-spin sets with 2X, 4X, 8X or 16X multipliers. Players can choose a straight credit award instead of sitting through hundreds of free games, but unlike other games of this nature, the player can change his mind mid-course—at any time during the spins, the player can stop and take a credit award that approximates the likely range of awards in the remaining spins. Another new game series is “Hot Poker Dice.” This series adds a progressive bonus to classic titles like Super Times Pay and Triple Double Diamond, involving a roll of virtual dice bearing card faces, to form a three-card poker hand. Credit awards are returned for poker hands of 10-high or greater, with the top progressive won through a three-card royal flush and a secondary progressive for three of a kind. The dice results are random from a 52-card electronic deck, re-shuffled for each bonus, and the awards accumulate—the bonus rolls continue until a 9-high or lower hand ends the event.

The Big Brands Of course, no IGT trade show collection would be complete without the launch of a few big branded slot games. None is bigger than this year’s group of two games launching the “Ellen” series, designed to capitalize on the culture of comedian Ellen DeGeneris’ wildly popular daytime talk show. The two base games—“The Ellen DeGeneres Show Featuring Ellen’s Dance Party” and “The Ellen DeGeneres Show Featuring 12 Days of Giveaways”—use the impressive CrystalCore 42 cabinet to mine the most popular features of the hit daytime show. The CrystalCore, used to great effect on last year’s “Avatar” games, features a 42-inch vertical touch-screen LCD monitor that provides a good canvass to recreate the audience frenzy that always happens on DeGeneres’ show, including a funny sequence in which Ellen does her famous audience dance through a cheer74

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ing studio crowd, collecting bonus awards for the player along the way. Video clips and voice-overs are used to create a number of other clever bonuses as well, from the “12 Days of Giveaways” title bonus to a “Wheel of Riches” spinning bonus. The show’s familiar theme song plays during the reel-spinning, and DeGeneres herself provided original voice-over work for the games. “From an excitement standpoint, Ellen is a big brand,” says Sigrist. “Her popularity now is at the top of the charts, not only for what she’s done with her incredibly popular show, but also what she did at the Oscars with the selfie, and what she means to current pop culture in general. “It fits a demographic that is somewhat new, but also one that is increasingly going to casinos. And we’re hitting Ellen at the top of her popularity.” Ellen’s not the only big brand that will benefit from the CrystalCore treatment. “Wheel of Fortune” gets a new take on the cabinet with “Wheel of Fortune Jackpot Paradise.” The game, in IGT’s “Out of the Blue” brand group, “sweeps players away to a tropical oasis where graphics are pristine and payouts are plentiful,” according to a company statement. Jackpot Paradise features a touch-screen interface and interactive bonus rounds. The five-reel game introduces a playful symbol set including kiwis, coconuts, beaches and bananas. Unique to this game, the top progressive is awarded from one of the game’s bonuses, the “Jackpot Pick Bonus.” A final branded slot on the CrystalCore cabinet represents the first dedicated theme for IGT’s Powerbucks multi-state commercial wide-area progressive link. Called “Powerhits,” the game—fully converged for play on land, online and for mobile wager online where allowed—provides compelling visuals, and a built-in incentive for max bets. With every wager below max bet, the player is shown where he missed wins because of the lower bet. IGT recently added Nevada to its Powerbucks network, joining New Jersey and South Dakota in contributing to the multi-state jackpot. “That’s huge,” says Sigrist. “We have more machines in Nevada we can connect to the network than in any other jurisdiction. “Being able to link that with the other jurisdictions we have continues to add to the liquidity, and what we’re really after—which is to really make the jackpot

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“”

Wheels instead of reels in a four-up game—that’s bringing innovation to Wheel of Fortune in a way that brings the granddaddy of all slot themes and takes it forward. —Joe Sigrist, VP of Product Management, IGT

as big as possible, and hit as frequently as possible. And the greater the number of machines on any one link, the more likely that will happen.” Among other branded games, Wheel of Fortune also gets a new look in “Wheel of Fortune Ultra Wheels,” which features a novel game-play setup—no reels, just four wheels on a screen with a multiplier in the middle. “Wheels instead of reels in a four-up game—that’s bringing innovation to Wheel of Fortune in a way that brings the granddaddy of all slot themes and takes it forward,” says Sigrist. Other big branded games to be launched at G2E include “Harley-Davidson: The Open Road” and “Ghostbusters: Back in Business.” The Harleythemed game is video slot with 3D “Enhanced Content”—a 3D motorcycle tire spins to accumulate multipliers; the roar of the Harley engine blares through the sound system. It is being launched with two base games. The new Ghostbusters game places the famously successful theme in IGT’s MultiPLAY format, with four reel sets spinning simultaneously, on the Center Stage movie-style community setup.

Skill and Poker All the slot games as usual, are accompanied by a collection of IGT’s industryleading video poker, plus one other series involving games of skill—the Reel Edge series. Reel Edge gained popularity originally with “Tulley’s Treasure Tunnel,” a video slot with a joystick-based video-game bonus that was a replica of a home video game, with physical dexterity and hand/eye coordination leading to success in a 3D video journey. This year, IGT adds to Reel Edge with “Race Ace,” designed around what Griffin says is the most popular video game ever. When the bonus round is triggered, as with the other games in the series, the player is given the option of a chance-based free-spin round or a 100 percent-skill-based bonus. In this case, the skill-based bonus is a virtual car race, with the player using the joystick and spin button (the accelerator) to navigate his car around the others on the screen. The bonus corresponds to where the player’s car places in the race. Heading up the lineup of video poker games is “All Star Poker III,” the evolution of top-performing All Star II, as well as “Game Star,” a new bundle game set with unique game mechanics available in six new single-hand poker

games and a multi-hand stud poker theme. Operator-configurable pay schedules are available for 11 poker themes, with an improved processor that enables players to switch between games almost instantaneously. New single video poker titles include “Super Times Pay Mega Progressive,” designed for the Powerbucks interstate wide-area progressive with a top jackpot returned for a natural royal flush; and “Rack ‘Em Up Poker,” which features bonus payouts for landing the same hand repeatedly. IGT also will show Game King 8.3, the next generation of the most popular video poker multi-game platform in the industry. Slated for release in 2015, the setup includes new video poker games plus a few new slot and blackjack games. The new platform includes a minimum bet configuration for the lower denominations. As usual, IGT’s remarkable lineup of new slot and video poker games will be accompanied by a complete display of innovation from the company’s systems division, which will stage an elaborate, interactive systems demonstration. The company will feature the latest versions of several innovations including sbX 4.4, Advantage 9.2, Casinolink and a series of applications that complement both Advantage and Casinolink. Among the systems launches is a new package of “Intelligent Bonusing” software modules. “Intelligent Rewards” brings a swipe-and-win kiosk application to the slot machine’s Service Window. “Mobile Intelligent Offers,” to be launched in 2015, provides an engine with built-in intelligence that automatically sends out offers in conjunction with each player’s history. IGT also will display its “On Demand Suite,” a number of software products such as Beverage On Demand, which allows customers to order drinks from a menu based on their prior drink preferences; a new “Mobile Host” system; a number of cashless payment solutions; and “Tournament Manager,” which allows casinos to remotely enable and configure slot tournaments on the fly. Sigrist says this year’s G2E lineup “really is evidence of the approach we’ve been taking over the last year-plus in game development, with a very strong focus on the roots of gambling and slot play. The lineup shows the breadth of our portfolio, and of our focus, which has been on hitting all the right player demographics.” OCTOBER 2014 www.ggbmagazine.com

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Konami GaminG GLOBAL GAMES 2014

Tapping the Potential

Konami brings its amusement game prowess to bear with groundbreaking new releases

or the past 15 years or so, the slot-machine supply business has increasingly been bolstered by expatriates from the amusement business. Most of the top slot manufacturers have someone on the game design staff who once worked at Sega, or Nintendo, or one of the other big amusement video game suppliers. As it happens, one of the top slot manufacturers in the business is owned by one of those big video game suppliers. Las Vegas-based Konami Gaming’s parent company, Konami of Japan, is one of the prime movers of the home, PC and arcade amusement game business, with legendary hits from Frogger to Metal Gear Solid. It is no surprise, then, that Konami, in its continuing march to the top of the slot market, has begun to draw on those video-game chops to create groundbreaking new games. “Konami has a lot of global mega-hit entertainment brands—Frogger, Castlevania, Metal Gear Solid,” says Matt Reback, vice president of marketing for Konami Gaming. “We’ve got a library of those games, and the list just gets longer and longer. Konami Gaming is starting to leverage that video-game IP for new slot games.” One of those famous titles will be transformed into a slot machine this year, but for Konami Gaming, it is that amusement-game discipline that is guiding a lot of the slot-maker’s game development efforts. “It goes back as far as the Advantage Revolution product (launched in 2009),” says Steve Walther, Konami’s director of product management. “The rotating device on that game is right out of Konami’s core amusement division.” With Advantage Revolution four years old and “Rapid Revolver,” last year’s hit on the Podium Monument platform, still gaining steam, Konami is embracing its video-game roots with its new collection of products. “Rapid Revolver leverages development done in Japan, Australia and the U.S.,” says Walther. “That’s what’s possible with Konami, a company with development studios that cover such diverse gaming and amusement markets.” That acumen in the creation of entertaining games is one reason Konami Gaming has soared to the top five (soon to become the top three) in the slot market. It’s one of the reasons the company is more than doubling the size of its Las Vegas headquarters. And in the end, it’s the reason the company arrives at G2E this year with its largest collection of new games ever—more than 100 titles in all. Those titles cover the company’s diverse range of products, from the consis76

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tently successful KP3 core video line to the Advantage stepper groups to groundbreaking new game mechanics, all designed with the edge brought to the design process by the Konami pedigree.

Dungeon Masters While it’s not a Konami video game, the newest Konami game to carry a licensed brand—itself a rarity— draws on the ability of Konami game designers to tap into that video-game acumen to create a legendary entertainment experience. “Dungeons & Dragons” is not even a video game, and it was never a Konami video game. (It’s currently owned by Hasbro.) It’s the board game that launched a genre of role-playing games that gained wide popularity in the 1980s. Players of Dungeons & Dragons each take on the role of a warrior, and under the regulation of the “Dungeon Master” referee, embark on adventures and battles within the fantasy world created by the game. Dungeons & Dragons created a whole subculture of players, a fact not lost on Konami game designers as they sought to recreate the experience. “Dungeons & Dragons is a very experiential game,” says Walther. “For 40 years, people have put themselves into a fantasy situation where they believe they are fighting dragons, starting adventures in taverns, escaping into some fantasy realm. So we built the packaging along the same lines.” By any measure, Dungeons & Dragons is a striking slot game. The game’s cabinet—the Podium Monument, with its oversized top box and 32-inch vertical monitor—is encased in faux stone to represent the castle housing the dungeon. On the side of the cabinet are glowing runes—an actual message in Draconic, which is the official language of Dungeons & Dragons (really), trans-

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lated as, “The path to wealth is through the red dragon.” Topping off the game is a sculpted red dragon with glowing red eyes, and there is an optional larger dragon, complete with wings, that rotates to be seen by just about everybody in the casino. “In places where we’ve placed it already, it is the centerpiece of the casino,” says Walther. A voice-over welcome message greets players when they put their money in. “The first thing the game does is transport you into the experience,” Walther says. The game itself features Konami’s trademark “Action Stacked Symbols,” obscured on initial spins but revealed to increase wins. “This is our Action Stacked Symbols game mechanic that has worked so well in games like China Shores and Mayan Chief,” Walther says. “By obscuring the stacked symbols, the player is engaged waiting for that opening to be revealed as to what the symbol could be. You could get multiple obscured Action Stacked Symbols, and the gates can open to reveal a 9, or the dragon, which is the top symbol. It’s a game mechanic that has been very popular for us.” The game also features a giant virtual wheel in the top-box monitor, which is spun to reveal one of four sets of free spins or the Dungeons & Dragons feature, a picking bonus with the number of picks controlled by the 20-sided “gem dice” that will be familiar to D&D aficionados. The entire package is capped by a four-level stand-alone progressive, triggered during the Dungeons & Dragons feature. Konami does not generally do immersive licensed themes. There is the “Rock Around the Clock” series, but the song is pretty much the only licensed element. The last immersive licensed theme Konami did on a slot was 2005’s largely forgettable “Rocky.” Reback says the company moved very carefully back into the licensed-game realm. “There were two things we wanted if we were going to get into an IP licensing relationship,” he explains. “The first was a theme that’s popular—fantasy right now is a very popular genre, with Game of Thrones, Lord of the Rings and others in the market. It’s that escapism slot players are often looking for. Secondly, we also wanted a play mechanic that we could incorporate, so we’re not just taking symbols from a reality show and throwing them on a reel strip. “We wanted something experiential, like Steve mentioned. So this 40-yearold best-of-breed role-playing game allowed us to have all of that adventure built into one package.” The D&D game is being launched with two themes—“Enchanted Riches” and “Conquest & Treasures.”

Monumental Games Dungeons & Dragons is only one of several new releases on the Podium Monument cabinet to be launched at G2E. Another standout is “Hammer Festival,” a mystery progressive slot that features a hammer-wielding Amazonian monkey that knocks cash prizes out of a stack of coins. “It is a tropical-themed game where you have a monkey holding a hammer, 78

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and stack of coins,” explains Walther. “On the stack of coins are blocks with amounts. The monkey will swing the hammer knocking the amounts out until he runs out of energy, when you’re awarded the amount closest to you on the display. The progressive jackpot is on top of the stack—the monkey keeps knocking the progressive closer to you.” There’s even a feature that gets the monkey another “life,” if you will. Some blocks might reveal bananas, in which case the monkey will stop, eat a banana and get more energy, and start swinging again. According to Reback, there will be seven new titles in all on the Podium monument at G2E, including “Engines Ablaze,” a four-level progressive slot with an “auto-inspired” cabinet including motors, tailpipes and flames. Other titles include “Pick Strike Quad,” “Snow Stars” and a new version of “Rock Around the Clock.”

Moving the Podium The Monument games join innovative offerings on both other versions of the Podium cabinet, the original Podium and the giant Podium Goliath. Highlighting on the original Podium cabinet is “Rokureels,” a six-reel game that features a volatile program and a bonus feature of up to 600 free games. “Roku means six in Japanese,” says Walther, “and this is a six-reel game that really adds a bit more volatility, which makes it a real gambler-style game.” On the Podium Goliath is the “Reeleven” series of 11-reel games. In the inaugural “Exotic Princess” game, already in the field, the first two reels of the game screen are traditional reels; that is to say, all of the virtual stops of the game’s program are included, with three stops displayed. The remaining three reels displayed are actually nine reels, each displayed in the space of a single symbol, each with all stops in the program represented. This gives game designers the ability to create some unique game-play features. In Exotic Princess, a 40-line game, it is a random feature that replaces all the symbols on the first two reels with a single symbol—the woman, jewel,

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Walther gives a “hint” what the game is: “If you ‘know the code,’ you’ll be pleased with the game we’re bringing out.” That can only mean one game: Contra. horse, snake, bag, perfume or one of the poker symbols. The woman symbol is wild. When the random feature is triggered, five free games are awarded with the single symbol locked on the first two reels. There is a feature within the feature: When coin symbols appear on a free spin, the symbol occupying the first two reels is “upgraded” to the wild woman symbol. At G2E, the Reeleven game being launched is “Inari Riches,” which scrambles the 11-reel configuration a bit. On this game screen, the standard reels are on either end, with the nine individual reels in the middle of the screen. As with Exotic Princess, blocked symbols and stacked wilds are a frequent feature. One other Reeleven game, “Gorgeous Cat,” will be launched at the show. Other Podium releases include “Rapid Blitz Riches,” a four-level progressive; “Wild Aztec,” a Latin American theme featuring Action Stacked Symbols; and “Fiery Sun Burst,” a stand-alone progressive. “We have a couple more surprises coming at the show in game mechanics,” Walther says. “One game to look out for: ‘Sakura Lady.’ It’s a new art style for us.” The rest about the game will wait until show time. 80

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Leveraging Konami Video The ongoing effort by Konami Gaming to tap into the video game resources of parent Konami of Japan will go to the next level at this year’s G2E, with the first Konami Gaming adaptation of a hit Konami video game for the slot market. Walther gives a “hint” what the game is: “If you ‘know the code,’ you’ll be pleased with the game we’re bringing out.” That can only mean one game: Contra. The “code” refers to what is sometimes called the “30 Lives Code” or the “Contra Code.” It’s a code that video gamers can tap out in directional buttons on their controllers to trigger an instant 30 lives. It was first used in “Gradius,” a first-person shooter game on Nintento, but it became famous with Contra, a futuristic, soldier-of-fortune shooter game released in 1987. “Just as with Dungeons & Dragons, what we’ve done with our first Konami licensed IP game is to build a game that has strong play mechanics first, and then put the theming around it,” Walther says. “We’re introducing a game

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mechanic that will be seen in a Konami game for the first time, that really leverages the license nicely and makes for fun game play.” Walther says it is likely the first game of many that will tap into the vast IP library at Konami’s disposal. “Konami has a wealth of entertainment IP, and Contra is our first foray into exploiting that,” he says. Certainly, it’s not the last.

Super Synkros Konami’s largest-ever new game display will share the booth with the latest from the company’s fast-growing casino management system, Synkros. “Synkros has really hit its stride with respect to installations,” says Reback. “Turning Stone and several ships of Norwegian Cruise lines are the latest additions.” He says Synkros is spreading because its “best kept secret” is that the system doesn’t go down, with an estimated uptime north of 99.9 percent. “Synkros was built from the ground up with the same technology as systems for the defense and banking industries,” Reback says. The latest additions to Synkros are networked bonusing solutions, including the “Super Series” of bonusing modules, a proprietary bonusing engine, and “True-Time Tournaments.” The Super Series is a customizable system to create networked bonuses or electronic drawings on the floor through an enterprise-wide network. The next generation of the bonusing system is called “Battle Bonus.” Instead of drawing numbers, players pick an object on the service window or picture-in-picture display—then the game proceeds, and a balloon with the object picked will float through the screen. If it makes it across the screen without getting popped by a UFO or plane, the entire bank gets a bonus award. “People share in the prize,” says Walther. “Everyone’s cheering for that last balloon standing.” Another new Synkros feature is the “Advanced Incentives Bonusing Engine,” a floor-wide interactive elimination-style bonus game with configurable patron eligibility settings. Reback notes that the bonusing engine can be customized for each player, using any number of criteria—double points or sweepstakes entries on a birthday, double entries for slow business periods, etc. “It adapts to whatever the operator needs,” Reback says. True-Time Tournaments enable enterprisewide qualification criteria to be set for on-demand tournaments. Qualifications are set by the casinos—earn so many points, play a certain time period—and a message is sent to players that they have qualified for an on-demand slot tournament,

with a leaderboard associated with it. This functionality is enhanced by Konami’s new SynkStart, which allows groups of players to enter bonus tournament play at the same time. Both options are compatible across a growing library of Synkros tournament games launching during G2E. Innovation in Synkros goes right along with the surge in creativity on the game side for Konami. Twice the headquarters size in Las Vegas may not be enough.

OCTOBER 2014 www.ggbmagazine.com

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MultiMedia

GaMes

New Horizons

Texas-based Multimedia Games pours on the titles as a pending acquisition promises value to shareholders

hen it was announced in early September that Texas-based Multimedia Games is to be acquired by cash-solution provider Global Cash Access, the biggest surprise was that it was not another slot manufacturer making the acquisition. There had long been market speculation that Multimedia could be an acquisition target—the company’s games have soared in popularity, sales to Class III casinos have jumped while the company retained its traditional Class II and central-determinant VLT strength, and the stock price has consistently risen. MGAM shareholders will receive a 31 percent premium to the closing price of shares as of September 5 upon finalization of the $1.2 billion cash sale. GCA, the leading supplier of ATMs, ticket redemption kiosks and similar equipment to casinos, estimates there will be around $30 million in synergies and $800 million in annual revenues for the combined company. Not much else is likely to change, including the Austin, Texas location of Multimedia Games, long considered an asset for the company as it has provided a steady stream of engineering talent from the flagship Austin campus of the University of Texas. That wealth of talent has enabled Multimedia Games to grow from a Class II bingo supplier well-known in Oklahoma and a few other markets into an emerging force in U.S. slot manufacturing, with 205 gaming licenses in 29 states providing a growing stage for a steady parade of entertaining slot games, not to mention TournEvent, perhaps the most talked-about instant tournament system in the business. That talent also means GCA will inherit one of the best game libraries in the business—a library that will officially be much larger as of this year’s G2E show. “We’re putting out an increasing number of games every year,” says Brad Johnson, vice president of marketing and product management for Multimedia Games. “The library is almost double where we were two years ago.” Johnson says Multimedia wants to demonstrate to customers that the company can now handle and support an order of any size. “We’ve increased our number of studios,” says Johnson. “When I came here in 2009, we had two studios. We’re just finishing our eighth studio right now. So,

Global Gaming Business OCTOBER 2014

what they’ll see at G2E this year is a ton more games than they’ve ever seen from us.” That display will include more than 100 unique themes in all game styles and in several different cabinets—the premium cabinet Platinum MPX, the eight-foot Texan HDX, the new Apex V Topper featuring dual video monitors, and Cash Boom Bang, the latest out-of-revenue game for the TournEvent tournament system. “Our MPX cabinet, which we quietly showed customers last year at G2E, is fully approved,” Johnson says. “We already have it in casinos, and we’re producing a variety of new games to go on it. We’ll show six games at G2E on our Premium cabinet. It’s got a 40inch screen, a customized chair with integrated sound, ‘Earthquake Shakers,’ and an LCD button panel.” “Earthquake Shakers” are sequences of sound and rumbling vibrations in the Premium cabinet’s custom chair, used to great effect in “Thundering Herd.” When the bonus is initiated, the game goes into a buffalo stampede to herald the event. The chair shakes, the

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GLOBAL GAMES 2014 The new Haunted House game is an elaborate extension of the creepy, masterful 3D animation in the first game, as the player is taken through the rooms of a haunted mansion searching for bonus credits behind various objects. rumbling starts, and the buffalo eventually come on the screen to initiate the bonus. “The sound system allows us to directly have the sound pointed at the player, but then when it’s a big event, we want everyone to hear about it, so we have speakers at the very top that announce that it’s a big win,” says Johnson. “People around the machine can see and hear what’s going on in the game.” The Texas HDX cabinet is Multimedia’s version of the Big Bertha—eight feet tall, with two 42-inch LCD displays. There is seating for two, and play buttons for two. It will work with any game in Multimedia’s library. Three games on the cabinet will be at G2E. The Apex V Topper is a dual topper in a “V” shape that goes on banks of games, with attraction animation across multiple screens. It will be used as a marketing tool at first, Johnson says, to be shown on “Must Hit By Progressive” games at G2E. Other hardware launches include improvements to the standard TS 3.0 cabinet, including improved reel lighting; and “Skyline,” a new top box with novel lighting effects Johnson describes as a “modern, classic Vegas” feel. “It feels like you’re walk-

Global Gaming Business OCTOBER 2014

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ing down the Strip when you see a bank of these games,” he says. All this, plus hardware improvements to the TournEvent system, have given game designers at Multimedia a new canvass for what will be a blitz of new product at G2E.

Entertainment Style One of the highlights of this year’s G2E lineup for Multimedia will be a mix of new and encore games on the MPX cabinet that show off the company’s ability to produce clever entertainment-style video slots that appeal to a broad range of players. For instance, two of Multimedia’s most popular video slots get new treatments this year, with “Invasion 2: The Return” and “Haunted House After Dark.” “Invasion 2” is a follow-up to the hilarious “Invasion from Outer Space,” using the same campy 1950s sci-fi film images (with MGAM employees again providing the screams). The new Haunted House game is an elaborate extension of the creepy, masterful 3D animation in the first game, as the player is taken through the rooms of a haunted mansion searching for bonus credits behind various objects. In addition to the main Haunted House Bonus, the new game features a complete lineup of mystery events, including “Ghostly Wild Reels,” the “Tombstone Quick Pick Bonus,” mystery “Bat Wilds” and “Witchy Mystery Multipliers,” and stacked “Haunted House Wilds.” The Multimedia G2E booth, in fact, is being dressed up to celebrate the arrival of Haunted House After Dark. According to Johnson, there will be a

“haunted house” inside the booth to showcase the new game, along with one other MPX title. Sticking to the macabre, Multimedia offers “Dracula” on the MPX. The main bonus in this game is a multi-level event that has two picking events and a wheel spin. The picking events use that same intricate 3D animation as the player picks from bats, wolves and coffins for bonus credits. The wheel contains credit prizes and jackpot awards. During each level, the player picks objects to reveal either Dracula, one of the “Brides of Dracula,” or “Spin,” which triggers the wheel. Dracula adds a jackpot slice to the wheel; his brides boost the credit values on the wheel. Finally, “Cabinet of Curiosities” is a quirky nod to 19th century curios, with an elaborate picking bonus in which the player picks from 32 curiouslooking objects and adds it to one of five “specimen collection shelves.” Each shelf has a corresponding progressive jackpot. The MPX games are joined by a huge collection of games in Multimedia’s core video, stepper and “High Rise” slot collections. As usual, many of the new games are designed to make you laugh. Take “Full Service,” a theme that resurrects the gas station of old, with spiffy, uniformed attendants—called “Gas Jockeys” here—performing all manner of “super service” like checking tires, wiping windshields and of course, pumping your gas. The Gas Jockeys sing an old-time commercial jingle at the start of one bonus, in perfect, hilarious harmony. In one scatter pay, when one of each theme symbol lands, the Gas Jockeys come out to service an automobile and present the credits to the player. The “High Octane Bonus” has players picking Gas Jockeys for credit awards.

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GLOBAL GAMES 2014

During each level, the player picks object to reveal either Dracula, one of the “Brides of Dracula,” or “Spin,” which triggers the wheel. Dracula adds a jackpot slice to the wheel; his brides boost the credit values on the wheel.

Full Service is one of several multiple progressive slots being offered by Multimedia this year. “Kitty Riches” is another example of Multimedia’s masterful use of humor. In what Johnson calls the “best kitty game ever,” the player picks a kitty at the beginning to serve as a wild symbol. In the “Black Cat Bonus,” a black cat walks across the screen and awards multipliers. But the funny part is the chorus of “meows” that come out of the sound system every time a kitty appears, from the “Catnip Wilds” to the free-spin bonus (“meow, meow, meow… free spins!”) to the “Pick’n Kitten Bonus,” in which you pick from a field of kittens until four match for a prize—the “meows” get louder as you approach the payoff. Other titles in the video category cover a wide variety of themes and play mechanics. “Legend of Excalibur” has a medieval-themed picking bonus to fill in characters to win four progressives. “Ghost In The Machine” has creepy robot characters and “Second Chance Wilds,” which are wild symbols that stay in place on the free-spin reels until they are part of a win. “Silver Fox” is a gambler’s game with stacked symbols and a free-spin bonus that can reach 100 spins with retriggers. “Bonnie and Clyde” has stacked Bonnie and Clyde symbols that turn other symbols wild. “Gorilla” has wild gorillas—stacked, of course. Other standouts in core video include: • “The Birds and the Bees,” a hilarious video slot in the vein of last year’s “Yardbirds;” • “The Kraken,” with a free-spin “battle” that shoots cannonballs at the Kraken monster when certain freespin symbols land; • “Valkyries,” with reels that expand to eight high with stacked wild symbols; • “Sparkle and Shine,” a six-reel game featuring “Twist and Win,” in which a section of the reel field twists to form a new field with additional wins; • “Jack and the Beanstalk,” in which you can win the top bonus for chopping down the beanstalk with the giant on it; and, • “Goldilocks,” with bonuses for Mama, Papa and Baby Bear. In the High Rise tall-top series, the company is launching “Super Jackpot Wheel,” a five-reel video slot featuring Second Chance Wilds and four wheels in the progressive bonus—a slice on each wheel corresponds to a progressive jackpot, and the player can win more than one of four jackpot levels. It’s all wrapped up in an old-time game show theme, complete with a smarmy host. Also in the High Rise series is “Smokin’ Hot Diamonds,” a linked six-tier progressive with a volatile program and free-spin rounds that can reach 200 games. The progressive levels correspond to numbers of diamond symbols on the reels, with five on the first payline returning the top prize.

High-Denom Focus One of the game design trends at Multimedia Games this year was the creation of a range of slots designed for higher denominations, both in video and stepper games. Johnson says there will be a “High-End Room” at the Multimedia booth to display all the high-denomination games. 86

Global Gaming Business OCTOBER 2014

Among the high-denom highlights on the video side is “Starry Night,” a high-denomination—quarters through $5—version of the ode to the earliest days of motion pictures released in low-denom versions two years ago. Reprised is the nickelodeon-style picking bonus and the animation reminiscent of early motion pictures. Other high-denomination video slots include “Warrior Legacy” and “Carnival in Rio,” both featuring free spins in which themed symbols become wild; and “Night Hunters,” with four “Must Hit By” progressive jackpots. Highlights on the mechanical reel-spinning side include “Double Jackpot Gems,” a threereel, nine-line stepper with multiplying wild symbols; “Hot Spot Sevens,” a three-reel, fiveline, five-coin slot with multiple “7” combinations, free spins and multiplying wild symbols; “Smokin’ 7s Deluxe,” a three-reel, five-line game with a dual progressive; and “Black Diamond,” a nine-line, 27-coin stepper with a two-tiered stand-alone progressive. On the Skyline stepper cabinet is “Canary Diamonds,” a six-level progressive with the jackpots corresponding to numbers of scattered diamond symbols. On the High-Rise cabinet is “Queen of Diamonds,” with a ladder-style progressive bonus.

Champion TournEvent Multimedia Games will be holding the finals to its “National TournEvent of Champions” October 1, in which a top contestant from one of the casino locations that participated in satellite events will take home $500,000. (The top prize in 2015, by the way, will be a cool $1 million.) The tournament is at the XS nightclub at Wynn, but back at the trade show, Multimedia will display the latest additions to the innovative instant tournament system, which comes in a package including cameras in each machine, a leaderboard that shows video of the contestants during the contest, special features like “Jump to First”—in which the “Money Man” appears and jumps a contestant to first place—and special games with floating balloons that jack up the score when you touch the screen to pop them. This year’s improvements include a tablet functionality that allows hosts at local casino events to register tournament participants on a mobile device, and a new game called “Cash Boom Bang.” The game features a random “Turbo Mode,” in which a contestant’s screen goes from one to four sets of reels for a period of super-charged spins. With each game at around 1,500 percent payback, the player’s score can jump a lot with four reel sets per spin. “It’s a super-exciting feature that takes tournament play to another level,” says Johnson. In all, it will be MGAM’s biggest coming-out party. “We’re really trying to show our customers in all our markets the size of our game library,” says Johnson. “As we go into the future, we want to be able to sustain large quantities of games on casino floors.”

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Novomatic GLOBAL GAMES 2014

Group

Greenlit in the U.S.

Europe’s largest supplier of slot machines continues to carve out a market in the Americas

t was only a matter of time before the Novomatic Group of Companies, through its slot-supply arm Austrian Gaming Industries, made itself a fixture in the U.S. gaming market. One of the biggest European producers of gaming technology, Novomatic is also one of the largest integrated gaming companies in the world, with locations in 43 countries and exports to more than 80. Now, the U.S. is on the list. It’s been one full business year since the company announced its American arrival, and it’s been a busy arrival at that. The company has founded Novomatic America Sales LLC and opened a headquarters in Deerfield Beach, Florida, as well as a service center in East Dundee, Illinois. The company’s U.S. team is headed by CEO Jens Halle, who also is managing director of Novomatic’s AGI division, and Rick Meitzler, vice president of sales for North America. The division has put together a product range that the executives feel will make the Novomatic name a staple in the U.S. gaming industry. So, this year’s G2E is of special importance to the group. “G2E Las Vegas is a traditionally important event for the Novomatic Group, and it is now of even more significance as it is the first big show presentation of our growing range of licensed products for the U.S./American markets,” Halle says. “We have done our homework, listened closely to our customers’ needs and their guests’ wishes, and are now in a ‘green light’ position to present an initial and growing U.S. portfolio that also caters to special market requirements such as the Illinois VGT sector.” But to portray the Novomatic Group as a new player in the gaming world doesn’t really hold up. The group of companies—it would take forever to list them all—is spread throughout the European Union and has been growing rapidly in Asia and Latin America.

Global Gaming Business OCTOBER 2014

Introducing the

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Subject to regulatory approval

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GLOBAL GAMES 2014

Our plan for Novomatic’s rollout in U.S. markets is to have U.S.-specific gaming technologies that will excite and inspire American operators. Our recent focus groups and operator interactions tell us that we are on the right track for success.

“

”

—Rick Meitzler, VP of Sales for North America, Novomatic

Multi-Game Focus Still, the U.S. is a big domino, and the group is coming forward with an extensive and well-proven lineup. There is room, however, for some strictly American-offered products such as the Action-Gaminator, a multi-game unit that offers a sophisticated mix of internationally proven Novomatic hit slot games for the Illinois VGT market. “From the operator responses that we have received, we are sure that this will be a big hit in the specialized Illinois market,” says Meitzler. “We also expect a hugely positive reaction to the Novostar V.I.P., which we are also premiering, introducing supreme game play in panorama format. Our plan for Novomatic’s rollout in U.S. markets is to have U.S.-specific gaming technologies that will excite and inspire American operators. Our recent focus groups and operator interactions tell us that we are on the right track for success.” For such an established game-maker bringing many of its games to a new market, variety is the key. The largest variety comes from the Group’s Novo Line of interactive games, along with its Coolfire II range of games. Together, they represent a selection of slots available as either single game themes or presented in the company’s multiple game platforms of Super-V+ Gaminator and Premium-V+ Gaminator and Novo Line Interactive multigame mixes. Up to 28 games can be offered at a single terminal in the multi-game units, along with a new POS concept of multi-game presentation for international casino floors. Novomatic ups the player choices by using the latest mathematical concepts and innovative ways for players to win, leaving a range of games with from five to 50 paylines. “Modern multi-games provide greatly enhanced flexibility for any operator’s gaming floor, as well as an obvious player benefit in terms of game choice,” says Halle. “Simply put, our experience as both a manufacturer and operator over many years has conclusively proven that multi-games are players’ 90

Global Gaming Business OCTOBER 2014

favorite. As always, the games themselves are the most important factor. Multigames gave more games, more choice and more satisfaction.”

It’s All in the Packaging The group’s multi-game systems are packaged in the Dominator cabinet, with its revolutionary design exclusively for the Novo Line platform, as well as in the Super-V+ Gaminator III and Novostar SL cabinets. The Novostar V.I.P. cabinet will also make a U.S. premiere at G2E, featuring a panoramic game-play format including a large Crown V.I.P. chair and an extra 46-inch upper screen positioned at the perfect ergonomic distance for game play in top comfort. Novomatic’s Reel Tournament feature allows for instant tournament play, and is a marketing tool for all sorts of casino promotion programs. It allows operators to offer their guests live tournaments in real time on an unlimited number of connected Super-V+ Gaminator machines featuring the Super-V+ Gaminator multi-game mixes T1 or T2. And all with the touch of a button. The Novo Line’s Novo Unity II system also allows operators to link any chosen number of terminals to an unlimited number of different games such as roulette, baccarat, poker, blackjack, sic bo and bingo, as well as slot games.

Roulette Novomatic will highlight this versatility with a fully automated Novo MultiRoulette wheel linked to a group of Novostar SL slant-tops, each with an entire fully animated multi-player, multi-game selection, as well as Novo MultiRoulette and the latest Novo Line Novo Unity II video slot multi-game mix. One example, the Lotus Roulette, is in a six-player island configuration,

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Novomatic will highlight this versatility with a fully automated Novo Multi-Roulette wheel linked to a group of Novostar SL slant-tops, each with an entire fully animated multi-player, multi-game selection.

consisting of individual player stations and one automatic roulette wheel embedded in a veneered table. Each of the individual player stations is equipped with high-resolution touch-screen monitors and automated cash-handling facilities. Novomatic will also display an automated single-player roulette that combines roulette with slot gaming in one unique machine. The feature is an evolution of the group’s original Pinball Roulette game that will be displayed with Panther Roulette and Panther Roulette II. The Panther Roulette features a second 32-inch full-HD screen on top of the machine with Novomatic’s “Flipscreen” functionality—players can press a button to switch the top and bottom screen displays. Both versions are available with a comprehensive multi-game offering of 23 HD video slot games. Finally, Novomatic will also feature online products from subsidiary Greentube—along with iGaming2Go—and will present mobile applications

and content. Available for HTML 5, Android, iOS, Native App, etc., the portfolio includes Greentube’s multi-channel strategy, which offers a link between online, mobile and thin-client terminal solutions. Put simply, as far as the U.S. is concerned, Novomatic has arrived. —by Mike Pritchard

Global Glob bal Markett Advisorss

OCTOBER 2014 www.ggbmagazine.com

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GLOBAL GAMES 2014

Ortiz GaminG

The Ortiz Standard The South American company branches out with new markets and new games

f there is one word that explains the growing success of South American gaming company Ortiz Gaming, that word would have to be bingo. The manufacturer specializes in electronic bingo—and bingo-style lottery games, a mainstay of its game lines and features. It’s a mainstay that has powered the company’s move into the U.S. and Asian gaming markets since late 2012. Ortiz Gaming entered the Asian market in 2013 and now, less than a year later, the company has machines installed and partnerships with more than 25 Asian gaming industry operators. The company’s growth in the U.S. has been just as impressive. The company sees a natural fit between its bingo games and tribal gaming in the U.S., which, of course, has strong ties to the games going back decades. And they may have a point, as the 20-year-old company is having one of its best years ever in 2014. “In terms of company growth, this has been one of the most successful years in the history of Ortiz Gaming,” says company President Maurilio Silva. “The Ortiz Gaming concept is such an innovation for raising the standards and expectations of a casino, that it has fueled unprecedented excitement from operators in every sector. Our phenomenal growth can be attributed to more and more markets, such as the U.S., beginning to adopt the ‘Ortiz Standard’ for raising their revenue expectations.”

The Ortiz Standard The Ortiz Standard is to increase win per unit beyond the floor average. The idea is to generate higher time in-chair through Ortiz features such Extra Bonus Ball, which allows players to increase their bet during a bonus game, and Sky Paper, which announces Jackpot winners with a shower of confetti. Yes, confetti. But the standard is more than exciting game features. Ortiz Gaming delivers the Ortiz Standard through games with math that re-conceptualizes how a ma92

Global Gaming Business OCTOBER 2014

chine should perform, says Silva. The standard represents an evolution not just of games, but of the very thinking of revenue metrics. The standard doesn’t just increase win per unit, but redefines the expectation of game average performance. “Not to be compared to stepper reels, video slots, or their outdated business models, the Ortiz Standard allows operators to totally rethink slot floor metrics,” says Silva. All of the Ortiz EGMs allow for four or more games to be played at once, in addition to the Extra Bonus Ball function, which allows players to increase their bet during the bonus round. These features allow for maximum coin-in beyond the basic reel game. “As the standard becomes more well-known, we anticipate that our

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In terms of company growth, this has been one of the most successful years in the history of Ortiz Gaming. The Ortiz Gaming concept is such an innovation for raising the standards and expectations of a casino, that it has fueled unprecedented excitement from operators in every sector. —Maurilio Silva, President, Ortiz Gaming

“”

growth curve will continue upward,” Silva says. “As we continue to introduce the Ortiz Standard, more and more operators have begun to compare the rest of their games to the superior performance they have come to expect from Ortiz Gaming. For the remainder of the year we are seeing increasing demand, both from operators and players.” Towards that end, Ortiz Gaming has been hitting most tribal and U.S.-based trade shows in 2014, and plans to make a big splash in Las Vegas at G2E highlighting its newest technologies and products. Among the “surprises” the company expects to unveil is a variety of new cabinets featuring Sky Paper. The flashy win feature “gives a whole new meaning to community gaming, and goes beyond ‘bells and whistles’ to generate excitement at the machine by announcing a jackpot winner with a shower of multi-colored paper,” says Silva. “There’s something about the effect that just draws other patrons to the spot and creates an on-floor excitement hard to duplicate.”

New Bingo Games Game themes to be featured include bingo-style Class II and Class III games, ranging from Ortiz’s world famous “Triple Bonus” to a new soccerthemed game, “Goal Mania.” The game is a Latin bingo game with a soccer theme and a goalkeeper as the main character. Goal Mania consists of a three-by-five bingo card with 15 numbers each. Players can play up to four cards at once. Thirty balls are drawn from the bingo globe with up to 10 Extra Bonus Balls offered for purchase. A bonus game is triggered when the player wins the Double O prize. In the bonus game, the player is prompted to select soccer players on the screen. Each soccer player has an associated credit award. Selection ends when

a referee with a red card appears. The player will be awarded the total amount of credits selected before the red card. Goal Mania has 17 prizes plus the jackpot. The company will also feature its newest lottery-style game, “Better Touch,” which allows players to play up to four cards at once. If a player draws a green or purple lottery ball, the win is multiplied up to three times. Game play begins after a player chooses his or her favorite six numbers on each lottery ticket. The lottery balls are then drawn, highlighting winning numbers on each card. All the numbers in the appropriate order will win the jackpot, triggering gold sequins to light up the screen while gold coins rain down. The bonuses in the Better Touch game are triggered by different colored balls making up the lottery number combination. If a player draws a green ball as part of the lottery winning combination it will multiply the winnings by two, and a purple lottery ball in the lottery winning combination triples the prize. With these extra bonuses, and the ability to play additional lottery tickets at once, the game constitutes a new take on lottery. The game also features crisp sound and high-definition graphics. Better Touch is available in Class II and Class III formats. Company officials are playing some of their new game themes close to the vest, promising a lot of surprises. Some of Ortiz’s most popular bingo games include Ace Mania, Six Bingo, Fiesta Bingo, Locomodin and Bingole. “Our biggest focus is our customers,” says Silva. “We are focused on delivering products which enhance the casino floor over the long term, and creating partnership with casinos to be the foundation to a profitable relationship.” —by Mike Pritchard

OCTOBER 2014 www.ggbmagazine.com

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WMS

GLOBAL GAMES 2014

Blade Running WMS keeps on rolling with two versions of the new Blade cabinet, and a wealth of new games

lot manufacturer WMS Gaming has a new owner this year, its parent WMS Industries having been acquired by lottery giant Scientific Games. Next year, it will have a new sister company, when Scientific Games completes its acquisition of slot and table maker Bally Technologies. But at Roscoe and North California Avenues on Chicago’s North Side, it’s business as usual. Operations at the WMS Chicago Technology Center, opened just two years ago, have not missed a beat. The expanded facility, built on the bones of what had once been the Williams pinball factory, has remained the cradle of all WMS innovations on the slot floor, and according to Allon Englman, WMS senior vice president and chief design officer, new ownership has not interrupted the flow of ideas. Englman says the only outward difference in Scientific Games ownership is that his group reports to the new CEO of the parent company’s gaming group, William Huntley. The acquisition itself, he says, has only added to the effectiveness of game development. “Scientific Games is a very global company,” Englman says, “and they are encouraging us to think more globally, as opposed to just a North American focus.” At G2E, Englman says to expect games designed for Australia, Mexico, South America and other distinct markets. But the company’s vaunted R&D in all game areas for its casino slot line remains as effective as ever, with longtime engineers and game designers continuing the creative burst that had WMS on a business surge long before last year’s acquisition. The stars of the G2E show for WMS will be a remarkable collection of licensed brands—both new branded games and new entries in longstanding branded game groups. And the supporting stars for all the new games is a new line of cabinets launched last spring called “Blade.” Early this year, WMS released the first games on the mechanical reelspinning version of Blade, and several high-powered releases at G2E are the direct result of maximizing the strengths of the Blade stepper cabinet, according to Englman. G2E is the official launch of two new Blade cabinet configurations: Blade s23 and Blade s32. According to Englman, the cabinets are the result of an intensive player research development process. “The Blade s23 and Blade s32 cabinets are player-focused hybrid slant products—the next generation of slant innovations,” Englman says. The Blade s23 cabinet is designed for maximum attraction—to catch the player’s eye. It builds on the pop-

Global Gaming Business OCTOBER 2014

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GLOBAL GAMES 2014 ular features of WMS’ high-performing upright Blade cabinet and for-sale theme content that already has a proven performance record with players. The new design adds an optimal viewing angle with a contoured profile top and distinctive emotive lighting to help diversify the slot floor. In multiple units, the Blade s23 cabinet offers a captivating bank appearance with dynamic, game-driven direct and ambient lighting effects. “This attractive, highly playable cabinet is optimized for extended game play and designed to increase player comfort and engagement,” Englman says. The Blade s32 features two 32-inch screens in the style of what Englman says is the WMS “Metascreen” technology—high-definition displays that deliver a premium, high-impact ef-

fect to the slot floor. The cabinet comes with an exclusive content library. Englman says this year’s G2E show will be about populating those new cabinets with content, but also about the capabilities of what is perhaps its most popular cabinet of the past two years, the Gamefield xD. The highlights of the show, he says, start with the game he predicts will be one of the show’s major hits.

Yabba Dabba Do What Englman calls the “next generation of Gamefield xD” will launch with the newest WMS brand, “The Flintstones.” Based on the iconic prime-time animated comedy series from the 1960s, the Flintstones slot machine mines the long-running show for all the funniest moments of Fred and Barney, the StoneAge suburban workingmen who got laughs in the tradition of Ralph and Ed from The Honeymooners. The Gamefield xD format normally consists of one 32-inch portrait monitor in front of the player horizontally—not unlike a pinball machine—with another 32-inch screen forming the vertical top box, to create a giant, interactive “game field” on which animation can extend seamlessly between top and bottom screens. In this “next-generation” version, the top screen is actually two horizontal monitors with a spinning wheel in the middle. The format is used to great effect in the various bonus events gleaned from the long-running cartoon show. The player hears the familiar theme song during base-game reel-spinning, which is punctuated by mystery wilds as characters walk across the screen. One bonus features an expanded reel set; another features Fred at work in the quarry, on his dinosaur. There is a “Dino Bonus,” which is a spinning of the bonus wheel accompanied by video clips of the pet dinosaur on top of Fred greeting him after a hard day’s work. And of course, there is a “Bowling Bonus.” The player gets three balls to roll for Fred and Barney in one of the famous bowling scenes from the show—Englman says there literally hundreds from which to choose, most of them hilarious. Another highlight in the branded games is “Elton John,” a video slot featuring the famous rocker packed with mystery bonuses, multipliers, wheel spins and audio clips booming the legendary entertainer’s biggest hits through the WMS Sensory Immersion 2.0 chair. “We had great music and great iconography to work with,” Englman says. The Elton John game features a clever adaptation of the Blade video cabi-

And of course, there is a “Bowling Bonus.” The player gets three balls to roll for Fred and Barney in one of the famous bowling scenes from the show— Englman says there literally hundreds from which to choose, most of them hilarious.

Global Gaming Business OCTOBER 2014

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GLOBAL GAMES 2014

WMS has themed this Battleship! game around the famous pinup girls whose images typically graced World War II bombers. Free-spin and other bonus events are set to boogie-woogie swing music to complete a nostalgic effect.

net—a giant pair of glasses is positioned over the top screen, with wheel spins and other bonuses inside the lenses. Bonuses include “I’m Still Standing,” in which blank spots in the reels are filled by wild symbols as that song plays; the “Saturday Night” wheel-spin bonus, and a random “Rocket Man” bonus. Other highlights among the WMS branded video offerings are two licensed games in specialty formats, “Mad Men” and “Battleship.” Mad Men, based on the popular AMC period show about Madison Avenue advertising executives in the 1960s, features a cabinet with a huge reel in the center, formed by a curved LCD monitor. Bonuses and animated video appear on the big reel. In the main bonus, every time a win registers that is five times the bet or more, the top reel activates, and the player picks from cocktails on the screen to spin the reel and enhance the win. “Battleship” is a take on the famous board game that is different than any of the several previous slot incarnations of the theme. It is the first time WMS has used a licensed brand in its Colossal Reels format, which adds an oversized, 12-symbol reel set to the standard reels with stacked symbols and wilds over the entire field. WMS has themed this Battleship game around the famous pinup girls whose images typically graced World War II bombers. Free-spin and other bonus events are set to boogie-woogie swing music to complete a nostalgic effect. Rounding out the new brands being launched by WMS are “Austin Powers,” another Gamefield xD game (WMS is keeping the details on that one under wraps until the show) and “Gremlins,” a funny game based on 98

Global Gaming Business OCTOBER 2014

the quirky 1984 horror/sci-fi film. Of course, the new brands will be accompanied at the show by new versions of some of the legendary WMS brands. Standouts on the video side are a new Gamefield xD version of “Willy Wonka and the Chocolate Factory” and a groundbreaking new community-play version of the video slot that started it all for WMS, “Reel ‘Em In.” The new Willy Wonka game features a five-by-five reel interface with free spins and an “Oompa Loompa” bonus feature in which the diminutive characters do their song while expanding the reel set into the top screen of the Gamefield cabinet. The reels can grow up to more than 20 rows high, all the way to the top of the screen. There also is a reprise of the “Golden Ticket Bonus” from the original Willy Wonka game, which sends the player on a bonus journey around the film’s chocolate factory. “Willy Wonka is one of the best slot brands out there,” Englman says. “It has absolutely the best hardware package in the business.” “Reel ‘Em In Supercast” is the classic fishing game like you’ve never seen it before. The bank of games is linked in what WMS calls the “Community Immersion” package, with players at the bank participating in a common fishing game on the large LCD monitor. The goal is still to go for the largest fish and therefore the largest bonus, but instead of picking a fisherman and rooting for him, the players each “become” a fisherman or fisher-woman, thanks to joystick devices that let players actually “cast” their reels to different areas of the video pond, and feel tugs on their line as they reel in a bonus fish. “It’s a new tool that allows players to interact with this game as they never have before,” says Englman.

Back to the Reels WMS has re-committed to the mechanical reel-spinning genre this year, thanks mainly to the introduction of the Blade Stepper format. According to Englman, there are 25 mechanical reel-spinning themes on the Blade cabinet so far, including more prominent branded themes and a few throwback games recalling past reel-spinning glories. “We’ve had a lot of success with the three-reel format over the past few years, and you’re going to see a lot of them at the show,” Englman says. Perhaps the most prominent is another licensed brand the company recently picked up, a brand that once distinguished the slot-maker’s biggest rival: “Elvis.” The first WMS slot to celebrate the King of Rock and Roll is a classic threereel stepper in high denominations, featuring a mechanical wheel bonus in which you pick the Elvis Presley you want to be featured in the clips: “Memphis

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Elvis” from the 1950s Sun Records days; “Hollywood Elvis” from Presley’s string of 1960s movies; or “Vegas Elvis,” from the days the more mature, jump-suited Elvis did his legendary concerts at the International Hotel. The other prominent new brand in the reel-spinning category is “Powerball,” based on the multi-state lottery game. As with Elvis, it is a three-reel, traditional high-denomination slot. The mechanical reel-spinning format is also the home of the latest WMS game in the “Wizard of Oz” franchise, “Wizard of Oz: Road to Emerald City.” It is a three-reel mechanical slot with the “Transmissive Reels” transparent video overlay for animation during the bonus rounds. There are seven bonus events in all, one related to each main character in the legendary MGM film. Finally, WMS reprises an old favorite in the reel-spinning genre, resurrecting the “High Speed” game, one of the most popular titles in the slot-maker’s original group of stepper slots in the mid-1990s. “High Speed Turbo” is a fivereel stepper in a nine-line, 40-credit configuration. The game has all the modern bells and whistles, but maintains a retro look to appeal to players who were fans of the game on its first run. The bonus event is back, with free spins and guaranteed wins until the police car appears to end the bonus round.

To The Core The WMS lineup for Global Gaming Expo is rounded out by a remarkable collection of core for-sale video slots on the standard Blade and Blade s23 cabinets. The cuteness factor rears its head again with two follow-ups to last year’s “OMG! Kittens”—“OMG! Puppies” and “OMG! Kittens Safari.” With slots already out there honoring Frank Sinatra and Dean Martin, WMS finally pays tribute to the other main Rat Pack member with the “Sammy Davis Jr.” game. This one has a wild reel feature featuring Sammy dancing as the reel moves across the game screen. The “Cascading Reels” series gets new entries with “Cool Jewels” and “Sweet Drops.” “Ruby Star” is a six-reel game, with two reels randomly wild on each spin. A new “Life of Luxury”-style game, called “The Best Things In Life,” features a six-level progressive, with each jackpot won by a certain level of scattered diamond symbols on the reels. “When you look at a lineup for G2E, what do you want? You want hardware, you want brands and lots of innovative new mechanics,” says Englman. “I think we’ve covered all of that. In terms of product, we are firing on all cylinders.”

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GLOBAL GAMES 2014

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t G2E this month, Luxembourg-based Zitro Games will exhibit a number of machines and games tailored for the North American market, as well as Zitro Revolution 2014, a suite of video bingo products with new functionalities and new community bonus games. The lineup features a number of new games: Zitro’s “Air Cash” features four different prize levels and an innovative onscreen presentation that offers increased flexibility, a more dynamic gaming experience, and more interactive play. “Treasure Box” is Zitro’s new pirate-themed community bonus game. When Treasure Box is activated, a three-reel video slot game appears automatically onscreen and starts spinning to offer one of three possible winning combinations. Treasure Box provides players with up to three active prize lines that can increase their chances of winning a bonus prize. It also increases the size of the bonus prize. “Splash.” Zitro calls this its most team-oriented game. When a player achieves the Splash bonus, it is automatically “splashed” to all his or her neighbors, who are then also able to play the community bonus. The bonus offers many and varied winning combinations, which will allow all the participants in Splash to accumulate a number of prizes. Zitro has also developed a new way to qualify for community bonus games that doesn’t require players to accumulate points. Using this system, when a cash bonus activates on the game screen, players win direct access to the games. This new admission policy plus more chances to win invites player participation in the bonus games, the company says. Zitro has also developed its own technology for VLTs and server-based games through its Blackwave device. Through this technology, Zitro offers a wide selection of remote-access games for customers, and maximum flexibility for operators.

Zitro has developed its own technology for VLTs and server-based games through its Blackwave device. Through this technology, Zitro offers a wide selection of remote-access games for customers, and maximum flexibility for operators. 100 Global Gaming Business OCTOBER 2014

Each casino can customize its own downloads. And with new tools for monitoring, analyzing and managing the games and data on any machine in any casino, in real time, Zitro offers a suite of solutions it says can help operators optimize the value of their floors. Through its Interactive Division, Zitro will also present new products designed for the online market via www.worldofbingo.com, one of the most popular social video bingo hubs on Facebook. The company also will showcase its new 3-D game “Jack & the Beans” and a high-powered game engine with enhanced graphic and sound capabilities, increased interactivity, and engaging three-dimensional characters. Also at G2E, Zitro will introduce its Extra Ball Feature, included in all the company’s games. As the name makes clear, it provides three new extra balls: a free ball, a wild ball and the Zitro ball. “These new game features promise to increase player excitement by offering more frequent prizes,” according to the company. Founded in 2007 by the father-and-son team of Alejandro and Johnny Ortiz, the company has penetrated jurisdictions throughout the world. Today its products are in use in South America (Argentina, Colombia, Chile, Andorra, Paraguay, Uruguay and Perú), Central America (Honduras), Southeast Asia (the Philippines), and Europe (Ireland, Italy, Luxembourg and Spain), as well as Mexico, South Africa, and the United States. Zitro USA General Manager Sam Basile says the company has “the best product, of great quality and perfectly adapted to the North American market. Visitors to our stand will be able to see for themselves the versatility of our games and platforms.” —by Marjorie Preston

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Rocky

Road California online poker faces many hurdles By Dave Palermo

alifornia Assemblyman Reginald Jones-Sawyer is bullish on the state’s potential to become the nation’s mecca of internet poker. “We believe California will be the royal flush of online gambling in the United States,” the Los Angeles Democrat says. Efforts to accomplish that goal generated momentum in the 2014 legislature, largely due to general agreement by a coalition of 13 politically powerful American Indian tribes on what an online poker bill should look like. Stakeholders failed to get a bill voted out of committee by the August 29 deadline for introducing legislation. But after six years of frustration getting internet poker in the Golden State—a potentially lucrative market of 38 million people—many now believe enabling legislation will finally emerge in the two-year legislative cycle beginning in December. Jones-Sawyer plans to take the lead in sponsoring internet poker legislation. “Over the past seven months, we have seen tremendous progress regarding this issue,” he says, noting that for the first time tribes appear generally united on the issue. “I think there is a very good chance it will happen in 2015,” says gambling attorney and author I. Nelson Rose. Many industry analysts back Rose’s rosy prediction. But recent interviews with three dozen tribal officials, politicians, industry experts, regulators, stakeholders and others reveal skepticism internet poker will make it through the California legislature by 2016. There is, instead, agreement the path to online legislation in California will be both steep and littered with political, regulatory and economic hurdles. “It’s premature to be talking about bill-signing anytime soon,” tribal political consultant David Quintana says. “A lot of very complex issues have yet to be resolved,” says Arthur Terzakis, director of the state Senate Government Organization Committee (GOC), which oversees gambling legislation. The caution is understandable. California has the nation’s largest and most diverse gambling industry, its 102 Global Gaming Business OCTOBER 2014

tribal government casinos, card clubs, lottery and parimutuel racetracks generating $10.5 billion a year. The state also has the country’s most complex gambling regulatory systems, with the state and equally sovereign tribal governments exercising at times overlapping responsibility for 60 Indian casinos, 88 card rooms, racetracks and the lottery. “No state has the gambling landscape you find in California,” a tribal official says. With such a myriad of gambling stakeholders it comes as no surprise internet poker would prove problematic.

‘Blockers’ Remain Reaching agreement among tribes, card rooms and the thoroughbred industry on an internet bill has been fraught with difficulties. The 13-tribe coalition threatens to block any bill that would permit licensing international online giant PokerStars and other companies alleged to have taken U.S. wagers after enactment of the Unlawful Internet Gambling Enforcement Act (UIGEA) of 2006. But the Morongo Band of Mission Indians, three Los Angeles-area card rooms and PokerStars have formed a second coalition that threatens to block legislation that includes “bad actor” provisions that could preclude the company from being licensed. Meanwhile, the Pechanga Band of Luiseño Indians and Agua Caliente Band of Cahuilla Indians, among other tribes, threaten to block any bill proposal that licenses racetracks. The politically influential racing industry, in turn, threatens to block proposed legislation that does not allow them to operate poker websites. And, finally, anti-internet gambling advocates led by casino magnate Sheldon Adelson are threatening to block any online poker bill, period. “There are a number of potential stoppers,” Quintana says. “There are plenty of participants that could block the passage of a bill,” agrees John Latimer of Capitol Advocacy, lobbyist for PokerStars. “It’s going to

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Joe Morris, president of the Thoroughbred Owners of California, wants a seat at the table for racetracks. California Assemblyman Reginald Jones-Sawyer will keep up his efforts to pass a bill legalizing online poker in the state.

be very difficult, particularly with tax legislation requiring a two-thirds vote of the legislature. There needs to be an awful lot more consensus than we’ve had so far.” “There’s a lot of uncertainty. There are a lot of unanswered questions,” says a high-ranking capital staffer who requested anonymity. “Anyone who tells you it’s a slam-dunk to happen next year I think is being very optimistic. The obstacles haven’t been removed.” If and when a bill is approved, it is expected to take about two years to get the industry up and running. With the years of delay, the mantle of leadership California was expected to wield on internet gambling in the United States is gradually being ceded to East Coast states unencumbered by such a complex and diverse commercial and tribal gambling industry. And the way forward for online wagering in Indian country may not, as anticipated, be led by California’s influential casino tribes, but rather a handful of small Indian bands seeking to launch legally groundbreaking websites under federal law. (See page 106.)

Tracks And ‘Bad Actors’ The California online gaming debate is dominated by two issues: involvement by the racing industry and “bad actor” provisions in draft bills intended to bar licensing of PokerStars. Allowing tracks licenses to operate poker websites is generally viewed by the tribal coalition as violating voter-approved public policy of limited gambling as well as a potential erosion of tribal casino exclusivity guaranteed in the state constitution. But there is a sharp divide among coalition members on the issue. Some tribes are not overly concerned about licensing tracks. Others—notably Pechanga and Agua Caliente—regard it as a deal-breaker. Jones-Sawyer and others in Sacramento are convinced a bill will not make it out of the legislature without support of racing, a vast industry that includes track operators, thoroughbred and quarter horse owners and breeders, labor unions and some 50,000 workers. The question posed by lawmakers and Governor Jerry Brown is what concessions are to be made to the tracks: licensing eligibility or a guaranteed revenue stream from internet taxes and fees? “Horses have to be included in the bill. We’re just as legally entitled to this new form of gaming as anybody else,” says Robyn Black of Platinum Advisors, a

racing industry lobbyist. “We want a seat at the table, on a level playing field,” says Joe Morris, president of the Thoroughbred Owners of California. “If there are licenses out for sites, we want a site also.”

Amaya Complicates ‘Bad Actor’ Debate International giant PokerStars and its wildly popular Full Tilt brand threatens to devour half the California market, potentially discouraging competition and generating strong opposition from such tribes as the United Auburn Indian Community, partners with bwin.party, and Rincon Band of Luiseño Indians, partners with Caesars Entertainment and WSOP.com. PokerStars in 2012 settled a federal money laundering and bank fraud indictment for $731 million, admitting no wrongdoing but severely limiting its regulatory prospects for operating in the United States. The situation changed dramatically in June, when Amaya Gaming of Canada completed a $4.9 billion buyout of Rational Group, parent of PokerStars, divesting the company of its ownership and management and improving its prospects for re-entering the U.S. market. New Jersey, where Amaya was already licensed, is expected to bless the newly structured company and states such as California are reconsidering “bad actor” provisions in proposed legislation. “The legislature on the whole agrees with us on the bad actor issue,” Quintana says. “But legal and technical complexities have been introduced because of the sale of PokerStars. The spirit of the bad actor provision as we put it forward is still there.” California legislators are mulling over whether to target “tainted assets” in “bad actor” licensing prohibitions in bill language. Such a change does not mollify the Morongo coalition, which intends to sue if a bill limits the company’s ability to operate in California. “To arbitrarily say the assets that you purchased you cannot use, it would be hard for a legislature to adopt that stance,” Latimer says. “A bill with bad actor language was going to bring about a legal challenge. Passing a bill with tainted assets is going to bring about a different, but just as swift, legal challenge.” “The bad actor clause is like your appendix, unnecessary and potentially troublesome,” says Keith Sharp, attorney for Commerce Club, Hawaiian Gardens and Bicycle Club, coalition partners with Morongo and PokerStars. “I think there are some serious constitutional issues with bad actor clauses. OCTOBER 2014 www.ggbmagazine.com 103

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Keith Sharp, a lobbyist for the California card rooms, believes a bad-actor clause in any legislation is unnecessary.

Morongo Chairman Robert Martin says his coalition will be back with PokerStars to try again in California. Pechanga Chairman Mark Macarro would prefer that iPoker not be an issue, but realizes that the tribes need to be leading the charge.

I don’t believe it will survive a challenge. I think it is likely to be challenged.” Rincon Councilman Steve Stallings stands behind legislating regulatory standards for companies that took wagers in apparent violation of UIGEA, including restrictions on the use of “tainted” assets. “Legislation with bad actor clauses not only looks at the ownership, but the company as a whole—the management, the platform, the games,” Stallings says. “The tribes aren’t going to want to take out that bad actor provision just because there’s been a change in ownership. “I think they’re eventually going to get licensed,” Stallings says of Amaya/PokerStars, “but it’s going to take a while. There’s got to be more changes in the company before that’s going to happen.” “We must make sure that any ‘bad actor’ language is written so that it is applied fairly, and avoids any possible future legal challenges,” Jones-Sawyer says. Although coalition members are publicly united on bad-actor provisions, some privately express different opinions on keeping PokerStars out of the market. “They are really bad people,” one tribal official who requested anonymity says of PokerStars. “The reason they are so competitive is they’re bad people. They made $5 billion (taking wagers in apparent violation of UIGEA). We can’t compete with them.” “Certainly they’ve set a standard worldwide with online poker play,” says another tribal official and coalition member. “I don’t know how an industry in any environment—whether it’s the U.S. or California or Europe—wouldn’t want the best.”

Discouraging Revenue Online poker market revenue projections for California vary widely, from $200 million to more than $1 billion at maturity. But results from Nevada, New Jersey and Delaware have been discouraging, particularly for California licensees faced with the prospects of competing with PokerStars. No more than three or four websites are expected to dominate the market—some predict PokerStars, bwin.party and WSOP will lead the pack—and 104 Global Gaming Business OCTOBER 2014

legislators are suggesting upping entry fees far beyond the $5 million suggested in bill drafts from the tribes. If a bill is proposed to legalize online wagering and does not generate sufficient revenue to the state, says Adelson lobbyist Fabian Nunez, “I guarantee you legislators would not pass it.” Pechanga Chairman Mark Macarro has made no secret of his tribe’s motivation on internet gambling and its value more as a marketing tool than a revenuegenerator. “We do not suffer from the irrational exuberance that internet poker will generate hundreds of millions of dollars,” Macarro says, but with the evolution of online gambling “we believe it’s preferable to drive the bus rather than getting run over by it.” Some privately suggest Pechanga and other tribes had a strategy to block or delay rather than promote online legislation. A tribal official close to Macarro brands the allegation as “ridiculous,” noting the leadership role Pechanga took in achieving consensus among tribes on the issue. Some of the 13 tribes in the coalition do lack the resources and/or incentive to launch websites. The Viejas Band of Kumeyaay Indians, a coalition member, recently renegotiated its tribal-state compact to reduce payments to the state as part of an ongoing financial austerity program. Outgoing Senator Lou Correa, sponsor of an online bill drafted by the coalition that failed to make it out of the Senate GOC he chaired, has pledged to assist stakeholders in developing legislative policy and bill language for the upcoming session. Racing industry officials have reached out to tribes to discuss their differences. Macarro, Agua Caliente Chairman Jeff Grubbe, Rincon Chairman Bo Mazzetti and Lynn Valbuena, chairwoman of the San Manuel Band of Serrano Mission Indians, are meeting informally to mull over online strategy. And Morongo Chairman Robert Martin intends to be a player in the upcoming debate. “We’ll be back after the first of the year,” Martin says of the tribal/card room/PokerStars coalition. “What we’re going to do, specifically, I couldn’t tell you. But we’ll be back. “Maybe we’ll put a bill out there.”

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Class II

Controversy Tribal bands may launch iPoker websites hile a coalition of California’s politically powerful American Indian tribes is pursuing legislation to legalize online poker, some Indian bands plan to launch real-money online poker and bingo websites as Class II gambling permitted under federal law. The Ipay Nation of Santa Ysabel in San Diego says its PrivateTable.com website will soon be taking wagers on poker, although the launch had been delayed several times when GGB went to press. Alturas Rancheria in upstate Modoc County plans to take real-money wagers on bingo, although it, too, has continually delayed its launch of Desert Rose Bingo. The Internet Tribal Online Gaming Alliance (ITOGA), a coalition of seven tribes in Northern California, Oklahoma and Michigan, also announced plans to launch a real-money bingo website. But the group hasn’t been heard from for several months. Santa Ysabel, Alturas and the other California tribes believe they can legally offer online poker and bingo as Class II games regardless of what the legislature does, or doesn’t do. While the tribal operations have not met with much success, the concept of accepting offreservation wagers on Class II games under the Indian Gaming Regulatory Act (IGRA) without state approval has sparked debate over the potential legality of the operations. Tribes contend that with internet servers on the reservation, wagers legally take place on Indian lands and are subject to regulation by the National Indian Gaming Commission (NIGC). And while bingo is clearly a Class II game under IGRA, Santa Ysabel is seeking an NIGC opinion that online poker also constitutes technological enhancement to Class II gaming as permitted under IGRA. The NIGC has yet to weigh in on the issue.

106 Global Gaming Business OCTOBER 2014

Tribes contend that with internet servers on the reservation, wagers legally take place on Indian lands and are subject to regulation by the National Indian Gaming Commission. “We’re definitely moving the needle… forcing their hands to reach some conclusions and provide some direction,” says David Vialpando, chairman of the Santa Ysabel gambling commission. The NIGC in a 2000 opinion involving a proposed lottery by the Coeur d’Alene Tribe in Idaho turned thumbs down on off-reservation wagers. The opinion authored by then-counsel Kevin Washburn, now assistant secretary of Indian affairs, said “a tribal gaming operation is not authorized under IGRA if all or part of the gaming occurs at locations that do not fall within the definition of Indian lands.” Tribes believe the opinion needs to be revisited. Most Indian law experts believe NIGC will rule off-reservation online operations do not fall under its jurisdiction and pass the legal baton to state courts and the U.S. Department of Justice. NIGC commissioners and staff refused interview requests.

“The NIGC is clearly going to have to face the issue,” says Joe Valandra, CEO of Great Luck LLC, partner with Alturas in the Desert Rose Bingo website. NIGC opinions could have far-reaching implications on the ability of tribes in California and throughout the country to launch gambling websites without state approval. But regardless of NIGC views, the issues may eventually be left to state and federal courts. “Once there’s some legal certainty to the question of off-reservation wagers, more tribes will jump in” and launch websites, Great Luck attorney Kevin Quigley told gambling conference delegates earlier this year. “If the courts hold the gambling is, indeed, Class II with technological aids, which is permissible under IGRA, that’s the end of the story,” Norman DesRosiers, a consultant and former NIGC commissioner told Gambling Compliance.com. “That will open the floodgates for tribes.” The NIGC can issue closure orders for any gambling in violation of IGRA, but the agency has historically refrained from taking enforcement action against tribes. “I’m sure NIGC would just as soon arrive at the conclusion none of the activity we’re involved in falls under IGRA,” Vialpando says. “If they determine because the activity is generated off the reservation it is not covered by IGRA, we’re prepared to go to court and argue our case that it would be an incorrect conclusion. “We’ve been working on this enterprise for two years. We’ve done our homework. We have a very solid regulatory framework.” —Dave Palermo

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Deal Me In! 10 steps to a successful online poker room by Marco Valerio

ongratulations! You’ve just received regulatory approval to offer real-money online poker in your state. You and your company have been looking forward to this for a while. You have big dreams of running scores of games and raking a lot of money. But how exactly are you going to get there? How well do you know the online poker business in the first place, and through what means do you plan on becoming and staying competitive? This step-by-step guide puts you in the position of having to build your online poker operation from the ground up in the contemporary U.S. environment. The advice you are about to read was sourced from conversations with several individuals who have shaped the U.S. regulated online poker industry since day one. These include top operational managers and market analysts, along with actual online poker players, casual and serious alike. Before you invest any of your company’s resources into the uncharted territory of U.S. online poker, heed this wisdom by those whose successes, failures, experiments and embarrassments have conveniently mapped out much of the road for you.

Bring Your Best Assets To The Table And Expect Your Partner To Do The Same.

Get Your Payment Processing In Order.

Succeeding in the U.S. online poker market is like tango. Or an ’80s hit song. Either way, it takes two. One of the most valuable assets you should look for in a casino partner is an up-to-date, preferably large database of live poker players. Some online poker software providers have player databases too, but most legitimate operators quit the U.S. market in 2006, meaning it’s been a while since they could get through to American players. If you are the casino in the relationship, you hold access to a group of players you can realistically market to right now—your live poker room players. Your software partner’s responsibility is to serve these players a user-friendly platform. If your live poker business isn’t very robust, it would help if your partner’s poker brand were.

Choose A Software Platform—Or Create Your Own.

First order of business is to figure out the software platform your players are going to play on. Normally, you have two options: develop your own from scratch, or “rent” one from experienced providers. Each option has its advantages and disadvantages. The upside of owning your platform is control. You get to decide the platform’s look, features and upgrades, ordering them by importance however you want. You can base these decisions on what you believe to be better for your business, and you can act on them at the pace you desire. When you don’t have this amount of control over the platform your players use, requests to amend and improve it will need to go through your software provider first. This may take more time and cause disagreements, because a priority for your business may not figure as highly on your partner’s agenda—or it may not figure at all. The downside of building an online poker platform from the ground up is that you start out with something far behind the sophisticated platforms that have been in development for years. If your platform is so handicapped that it complicates play, players won’t have the patience for it and they’ll opt to play somewhere else. 108 Global Gaming Business OCTOBER 2014

Nothing can drive away players more quickly than being unable to deposit and cash out in a timely manner. It seems obvious, but it bears repeating: If players can’t deposit, they can’t play. But that is only half of the equation. If players who cash out don’t receive their money within a reasonable period of time, they will be extremely dissatisfied and less likely to come back. Short of recruiting shady payment processors, do whatever it takes to ensure that deposit and cash-out experiences run smoothly for players. Be ready to face challenges: some banks and credit card companies have hesitated to process U.S. online gaming deposits, but thankfully, they are starting to come around. PayPal and Neteller have shown an inclination to cooperate with U.S. iGaming operators, and plenty of legitimate payment alternatives exist on the side. Finally, if your brick-and-mortar casino can support it, permit deposits and cash-outs at your casino cage. Players love this option because it’s fast and cashbased. It also stimulates foot traffic to your property.

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Be Prepared To Contend With Some Surprising Realities About The Online Poker Market.

Meet Your Top Rakers.

A minority of your players is going to generate the majority of your rake. Fortunately for rule-of-thumb fans, the online poker industry embraces the Pareto principle, which postulates that 80 percent of your business comes from 20 percent of your customers. Translated for poker, this means 20 percent of your players generate 80 percent of your rake. Most of your cash games will be low-limit games—nickels and dimes, sometimes even lower. Although the quantity of these games is higher, the amount you rake from each of them is so small that it does not add up to much. We need to move up in limits to find the kind of rake that really influences our bottom line. Bigger bets mean bigger pots mean bigger rake. Look for your “top rakers” here—the prized 20 percent. But if these players and their higher-limit games are so valuable that they overshadow everyone else on the site, why should we bother with offering small-stakes games at all? Because...

Do you subscribe to the belief that “if you build it, they will come?” When it comes to online poker, get that cliché out of your head immediately. It has never been harder to get people to play on your online poker site. You may be new to it, but the online poker industry has been around for over a decade. Years’ worth of data have let analysts derive dependable judgments about how the market behaves. Some of these forces of nature seem counter-intuitive. For example, “stealing” players from other sites is much more uncommon than you might imagine. Contrary to the belief that online poker players are all value-hunters who stalk every site in search of better deals, the majority of players are actually stationary creatures who get comfortable with one site and stick with it. The data bears this out. Generally, when an online poker room’s traffic spikes—thanks, for example, to a successful promotion—other rooms’ traffic does not decrease much, if at all. Rather than taking players away from other rooms, the traffic spiker is mainly energizing its own player base or awakening a dormant segment that hasn’t played If You Don’t Have Casual Players, The Serious as much. Players Won’t Come—And Vice Versa. The heartbreaking takeaway is this: It is very rare and diffiCall them what you want in private—“shark” and “fish” are concult to enlarge your market share so much that you permanently troversially common—but here we will divide them into “serious” overtake another site. Domestically and internationally, online and “casual” players. poker room traffic rankings have looked much the same way for Serious players play longer, more often and more voluminously, years. Most of the big shake-ups only took place after cataclysmic usually at higher limits. Some of them “multi-table (play multiple events like UIGEA and Black Friday, which removed competitables simultaneously).” Generally, these are players you can count on to generate tors from the space and gave others a leg up. much of your rake. They don’t just start higher-limit games, they keep them going. Don’t assume all your serious, higher-limit players must be skilled or “professional” players here. Although many of them play at an above-average level, some are Look Out Your Window. huge whales. But for the most part, what sets serious players apart is their passionate In anticipation of interstate liquidity agreements, if you enter the drive to win money, through consistent play, from less skilled, more “casual” oppoU.S. online poker market today, you commit to an intrastate camnents. paign, where one geographically contained populace equals your enCasual players care more about playing “for fun.” This does not mean they enjoy tire market. To succeed in your own neck of the woods, you’d do losing—no one does. But whereas serious players worship value, casual players prioriwell to acquaint yourself with every tree, bush and gully. tize an entertaining experience in exchange for their time and money. Casual players In a country as big and diverse as the United States, the oneare generally found at lower limits, where they tend to stick to one table. fiftieth you can lay claim to is guaranteed to be unique in several key Serious and casual players alike play a critical role in your online poker ecosystem. ways that should influence not just the decisions you make, but your In fact, your room is unlikely to survive without one or the other. expectations, too. What is the average income of your population, Your top rakers (serious) may be your most valuable players from an economical and what does it suggest about disposable income? How large is the point of view. But if you don’t have plenty of casual, recreational players, serious playadult population, particularly in that critical 21-45 age bracket that ers won’t come. And because your serious players usually start and keep games going, plays the most online poker? Is your state densely populated, espeonce they go away, casual players won’t show up as much either, and those who do cially near the borders? How will this affect probably won’t play as long. the geolocation process? Do many residents Here’s a simplified recipe for a healthy online poker ecosystem: maintain a minorof nearby states visit or commute to yours? ity of serious players and a majority of casual players. Some will win, some will lose— Should you market to some of those miyou, on the other hand, are always winning because you rake as they play. But in so grants in their states? doing, you are taking money away from everyone. Therefore, deposits are the fuel that keep this system alive. Your goal is to ensure the longevity of the system by making sure serious and casual players alike remain happy and keep depositing. Unfortunately, your goals are seldom your players’ goals. So watch out. Serious players care primarily about winning as much money, as quickly as possible, from casual players. If this got broadly out of control and the well of casual players dried up, the serious players would leave too, killing the room entirely. Over time, several online poker rooms wised up to this, and a variety of protective measures have since become industry standards. For example, the number of games a player can simultaneously multi-table is usually restricted, as is the max amount of chips a player can bring to a table when he first sits down.

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Plan Your Marketing Spend Carefully.

There once was a time when U.S. online poker players could play against anyone in the world, creating these massive player pools that let operators throw money at marketing and get away with it. Then there’s today. The cost of buying a TV ad in New Jersey probably hasn’t changed much in the last few years—but the amount of money you generate from a New Jersey player diminishes in a state-only environment. The marketing ROI has nosedived since the U.S. online poker market went from borderless to intrastate. In all likelihood, the majority of your players will create their accounts during the first month or two of your launch— meaning you don’t need to keep spending the same amount of money each month to “attract new players.” Over time, the emphasis should shift from acquisition to retention. Take some of the money you were going to spend on marketing to “new” players and consider reinvesting it to keep your current players happy—say, by adding it to an upcoming tournament’s prize pool. Players really like that.

Players Like Tournaments. You Like Cash Games.

You’ve determined what kind of player supplies most of your revenue. Now we turn to what kind of game: cash games or tournaments? The answer is cash games, and there is little to no debate about it in the industry. On practically every online poker room, cash games account for well over half of total revenue. Cash games are straight-up rake. As long as one is running, you are making some money on every hand that sees a flop. Tournaments work differently. Once registration closes, part of the prize pool becomes your revenue. Ultimately the tournament plays down to a final table and then a winner. Due to the “top-heavy” prize pool structure of most tournaments, a few top finishers typically end up with any significant amount of money. Therefore, whereas cash games are win some/lose some for most players, tournaments are most lose, some win a little, and a few win a lot. This is riskier for your bottom line because of what most players do after a big tournament win: they cash it out. They take that money off your site and thus away from your tables, where its chances were otherwise good of feeding the well-oiled rake machine. So why should you run tournaments at all, if they have the potential to impoverish your ecosystem? Because they are popular. Players like tournaments because they are fun in a way cash games aren’t. Moreover, the majority of players, especially casual, prefer having access to a variety of games. You will seldom hear “I only play cash games” from anyone besides pros or players who think they’re pros. An additional upside to tournaments is that they draw attention and generate traffic when you “guarantee” the prize pool or, better yet, add money to it. In your heart, you always hope players come for the tournaments and stay for the cash games.

112 Global Gaming Business OCTOBER 2014

10)

Know Why You Are Doing What You’re Doing.

If you enter the U.S. online poker space with the only goal in mind to make a lot of money, you’re in for spectacular disappointment. The market is small and the competition, oddly enough, is stiff. It may be years before any U.S. online poker company turns a profit. Then why get into online poker at all? Because now is the time to start building customer loyalty, brand recognition and player databases—all to be leveraged later when things do begin looking up and the market expands. In the present era, a well-run online poker room can do much to complement your casino business, not only by driving more awareness and traffic, but also by providing you data you never had about your players’ identities, preferences and habits. If you can bank on these opportunities and develop your online poker product while trying to lose as little money as possible for the time being, you are doing a job well worth doing.

Follow Marco Valerio on Twitter @AgentMarco.

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iGAMING NORTH AMERICA

Reality Check If you think nothing is happening with online gaming, maybe you aren’t paying attention

by Kimberly Arnold

orting through various industry blogs, news sources and articles these days, one might incorrectly conclude the issue of online gaming has completely come and gone in the U.S. New Jersey has not achieved its over-inflated estimates (not surprising), Delaware and Nevada have been underwhelming, legislation has yet to move forward in large gaming states like Pennsylvania and California, and iGaming opponents have proven to be more formidable than industry advocates initially gave them credit for. Despite these observations specific to realmoney iGaming, the reality is that a great deal is happening relevant to online—it’s just that the shifts have been in segments perhaps not so immediately evident to the casual observer. While real money is unquestionably struggling to find its footing, significant initiatives and progress have been made “along the margins,” most notably in such segments as social gaming, skill games and increasingly now in fantasy sports. Add to this the volume of M&A activity that has occurred as of late, and it is clear that while political volleying and technical complications have helped delay further real-money legislation, the industry has kept itself busy behind the scenes, crafting the infrastructure that will guide and shape online gaming—in all its forms—throughout the upcoming decade. As evidenced by the various articles I have authored throughout the past several years, I am openly in the camp that asserts the expansion of online gaming is inevitable, in large part because technology is difficult to restrain. Global society is progressively more reliant upon internet, mobile and social media sources for news, research, travel... and yes, entertainment. Every industry must constantly evaluate new verticals of growth using these channels, and gaming is no different. So while real-money casino-style gaming has hit a roadblock (or two), it only follows that providers and operators are continuing to expand the broader industry through periphery online offerings. Tony Cabot, a prominent international gaming attorney and partner at Lewis Roca

114 Global Gaming Business OCTOBER 2014

Rothgerber—and one of my co-producers for the iGaming North America Conference—has been vocal about his pessimism regarding real-money gaming legislation as of late. Yet when it comes to advancements in related verticals, his view is much more positive. “We are seeing significant movement in related online segments such as fantasy sports at this juncture,” Cabot stated. “The industry isn’t standing on the sidelines waiting for the political environment to regain the momentum for realmoney iGaming it had a few years ago. Instead, they are focusing on the related opportunities that are available in the here and now. It is indeed a reality check for the industry, and I am not sure everyone is paying attention to how significant these progressions are.” Other industry advancements are stemming from the surge in M&A activity. Two years ago, Scientific Games, WMS, Bally and SHFL entertainment were all industry heavyweights and stand-alone competitors. Today, they have been streamlined into a single organization with global reach, gaming and lottery expertise, and some of the most diverse offerings available for land-based and online. The same can be said of the GTECH and IGT integration, and many other recent announcements. There is no question that the future of the industry will be impacted by the consolidation of the major providers, with efficiency of operations, commitment to innovation and convergence between gaming and lottery— and land-based/online—certain to be at the forefront of the discussion. Advancements in online are indeed happening. It’s all in how you look at it. Kimberly Arnold is chief operating officer for the Innovation Group, and a co-producer of the annual iGaming North America Conference, which will be held in Las Vegas April 14-16, 2015. Visit www.igamingnorthamerica.com for more information. The theme for the 2015 event is “Reality Check,” and will be focusing on the trends and themes discussed above.

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PokerStars, Others Ready for New Jersey Launch

artyPoker NJ has just released an extensive software upgrade of its online platform that focuses on tournament play. PartyPoker shares its online poker network in New Jersey with the Borgata Hotel Casino & Spa in Atlantic City. The network has been the leading provider of online poker in the state. The new software includes an overhaul to the tournament lobby, introduction of a variety of new in-game features and improved mobile geolocation programs. Mobile users can expect “greater certainty and increased accuracy” when it comes to geolocation verification for play on mobile devices, according to a statement from PartyPoker. The moves come right before the Garden State Super Series, which is Party/Borgata’s biggest online tournament series to date. The online tournament runs at the same time as the live WPT Borgata Poker Open in Atlantic City, and several online satellites for Borgata live events are also being offered. Borgata has also announced it will take deposits and withdrawals for PartyPoker NJ through the Borgata casino cashier cages during the tournament series. While supporters of online gambling in New Jersey have been waiting expectantly for PokerStars to begin operating in the state, some detractors have emerged who question a possible license. Many see the company as a savior for the state’s industry, which has gotten off to a slower-than-expected start. But not everybody is happy to see PokerStars in New Jersey. New Jersey Assemblyman Ralph Caputo, chairman of the Assembly’s Tourism, Gaming and Arts Committee, wrote a guest editorial in the Newark Star Ledger calling for a ban on PokerStars in the state. PokerStars was initially blocked in the state due to indictments against its former management, including founder Isai Schienberg, stemming from the U.S. Department of Justice’s shutdown of illegally operating sites in the U.S. in 2011. But the Rational Group—which operates PokerStars—has been sold to Amaya Gaming and PokerStars’ former management has left the company. 116 Global Gaming Business OCTOBER 2014

Blacklisted Bovada

The state Division of Gaming Enforcement is now expected to approve PokerStars through Amaya, which is already licensed in the state. The site could be in play as early as October. Caputo, however, feels that PokerStars does not deserve a pass. “While PokerStars has a history of bad behavior—behavior that resulted in the indictment of its former chief executive officer and owner and another high-ranking executive—the state is once again debating whether the firm has a place in Atlantic City,” Caputo says. “The Division of Gaming Enforcement will make that decision without even a public hearing or virtually any transparency to the process. “But merely changing ownership does not absolve PokerStars of its troubling past. In 2011, its leadership was accused by the Department of Justice of presiding over an ‘elaborate criminal fraud scheme’ and had to pay over $730 million to settle the claim. Now is not the time to allow PokerStars to enter the Atlantic City market—no matter how much money they promise to deliver. The immediate benefits may seem appealing, but they do not outweigh PokerStars’ checkered past.”

New Jersey Effectively Combats Illegal Online Gambling Sites

ew Jersey’s warnings to online gambling sites poaching the state’s gamblers from its licensed sites seem to be working. According to new poll numbers, only 16 percent of online gamblers in the state now say they visit illegal unlicensed gambling sites. That’s down from 24 percent in January.

Both polls were conducted by Commercial Intelligence. The follow-up poll surveyed 520 New Jersey online gamblers. One of the reasons for the decline is the numbef of illegal sites that stopped accepting New Jersey gamblers after state regulators sent cease-and-desist letters to a number of unlicensed sites that allegedly were marketing to players in the state. Following the letters, the Equity Poker Network, the Winning Poker Network and Bovada poker all stopped accepting New Jersey players. The Merge Gaming Network also had left the state prior to the letters being sent. The poll also found that many players only started gambling online once New Jersey’s licensed sites began operating last year. In January, 36 percent of respondents stated they hadn’t gambled online before November—when New Jersey’s sites went live—while 44 percent said they hadn’t in the new poll.

PayPal Could Start Taking U.S. Online Gambling Transactions

nline gambling in the U.S. could get a boost if reports that PayPal is considering taking online gambling transactions in regulated markets is true. Chris Grove of the OnlinePokerReport recently wrote that the e-wallet company has been considering the issue for several months. PayPal is used by online gamblers outside of the U.S., but has declined U.S. transactions since it was purchased by eBay in 2002. Grove reported that the company will reverse that policy in the coming months and begin taking transactions in the legal jurisdictions. Online gambling is legal in three states—Nevada, New Jersey and Delaware. PayPal is more used in the U.S. than Skrill— which offers it services to online gamblers in New Jersey—and Neteller—which is in operation for

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iGaming in both Nevada and New Jersey. PayPal would need to be licensed by each state’s regulators.

Tabcorp Looks at Online Gaming

abcorp CEO David Attenborough says the Australian company hopes to offer digital gaming in some 2,500 retail venues across New South Wales and Victoria. The move is a response to falling retail betting figures for the company in both states. Betting is currently only allowed by phone and in person in Australia. According to a report, Tabcorp might be able to provide the service through a venue’s license. “We would love to develop that further,” Attenborough said. “It is certainly the kind of thing the venues would love to see in place, because it is logical that if someone is already in the venue, they are essentially betting under the venue’s license.” Attenborough said the setup would allow Tabcorp to promote other products to retail customers. “The more value we add back to the venues, the more likely the venues are to be content with us as a partner,” he said.

888 Plans Delaware, Nevada Shared Poker Network

88 Poker will take advantage of the agreement between Nevada and Delaware to share online poker player pools. The network will be known as the All-America Poker Network. Delaware and Nevada agreed to share players in February, but no launch date for the move has been announced. 888 provides all of Delaware’s online poker, and its software is also used by WSOP in Nevada. The company plans to launch its own site in Nevada as well. “We are aiming to deploy a shared poker net-

work across the two states, which will offer poker players in each state an enhanced customer experience,” 888 said in an investor statement. “We remain fully committed to the U.S. market through our B2B business as well as through our interest in the AAPN joint venture.”

East Coast Could Be Home of U.S. Online Poker

ith California’s bid for online poker seemingly derailed for the near future, one analyst now expects the East Coast will lead the charge to expand online poker in the U.S. Steve Ruddock, of pokerupdate.com, sees gambling possibly coming online in any of five mid-Atlantic states in the next few years. If online gaming is approved in one of these states, the others may follow, he says. Here’s a rundown of his analysis of states likely to consider online gaming: Massachusetts Massachusetts may be currently fighting a ballot referendum looking to repeal the law passed in 2011 that allowed for brick-and-

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mortar casino expansion, but current State Treasurer and gubernatorial candidate Steve Grossman has been pushing the legislature for online gaming expansion, and speaking publicly about his desire for state-run expansion. If Massachusetts does repeal its casino expansion, and if Grossman wins the governorship, it could mean a serious push to pass an online gambling bill in 2015. On the other hand, if the 2011 law is preserved, the state is likely to hold off on iGaming expansion until the brick-and-mortar casinos are up and running. New York A late push by outgoing state Senator John Bonacic and Assemblyman J. Gary Pretlow sparked the possibility of New York as a potential candidate for online gambling expansion in 2015. Much like Massachusetts, several New York legislators have stated their intention to have the brick-and-mortar expansion that is currently under way in the state fully set up before exploring online gambling. This could happen quickly, as the state’s casino plans are moving along as planned.

Pennsylvania Pennsylvania seems the most likely 2015 adopter of online poker. The state legislature has held multiple hearings, commissioned internal and independent studies, and seems to have several legislators willing to sponsor iGaming bills. The question with Pennsylvania is how influential Sheldon Adelson will be if the legislature gets serious—Adelson’s Las Vegas Sands Corp. owns the Sands Casino Resort Bethlehem in the state— and precisely where the Parx Casino comes down on this issue. Thus far, Parx has sent mixed messages, with Chairman Bob Green stating his concerns over online gambling, while Parx has teamed up with GameAccount Network and Joingo to create free play and mobile online gaming sites that could be converted to real-money sites.

West Virginia The West Virginia Lottery is looking at online gaming in the hopes of boosting slumping revenue from the lottery and its casino industry. Lottery Director John Musgrave and other lottery officials recently met with state casino executives to discuss an app that would let players buy Powerball, Mega Millions and Hot Lotto tickets on their smart phones, among other online options. Musgrave said online gambling could help stop the drop in lottery revenue at West Virginia’s four racinos, caused in part by new casinos in Maryland and Ohio. In July, the lottery posted total revenue of $101.1 million, down 4 percent from revenue of $105.4 million in July 2013. Revenue from the state’s four racinos dropped nearly 5 percent to $51.1 million from the previous July.

Maryland Maryland isn’t on many people’s iGaming radar, but the state is certainly capable of passing an online gambling bill. The director of the Maryland State Lottery and Gaming Control Agency, Stephen Martino, already publicly stated they are “mapping it out,” when he spoke at a Massachusetts forum on online gambling back in March.

Bwin.party Reports Mixed First Half

win.party saw total revenues fall to £317.1 million for the first six months of 2014, down from £342.5 million last year. The company called its performance “mixed” as sports betting revenues increased by 7

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percent to £127.4 million, but seeing declines in most other areas. Online poker was down 31 percent to £44.1 million and its online casino and games division declined by 8 percent to £103.3 million. The company pointed to its withdrawal from markets such as Greece as part of the reason for the declines. The company also lost £7.3 million through its New Jersey online operations. “Trading during the first half of 2014 was mixed with a solid performance from sports betting more than offset by year-on-year declines in casino and poker, particularly in countries that were no longer a core area of focus,” said Norbert Teufelberger, chief executive of bwin.party. “We are on track with our current cost saving measures. However, it is clear that a more fundamental approach is needed to turn around our commercial and operational performance. “This requires a major change: we are simplifying our structure to accelerate the execution of our plans to drive revenue growth, increase our focus on customers in nationally regulated and/or taxed markets, and further reduce infrastructure costs. This new approach will also allow us to consider alternative financing and corporate structures in order to create additional value. We are confident

that the steps we are taking will underpin our financial performance and remain confident about the full-year outlook.”

Gibraltar Challenges British Online Gambling Rules

he Gibraltar Betting and Gaming Association has filed a challenge in Britain’s High Court against new gambling licensing regulations in the U.K. The association argues that the new regulations—including a point-of-consumption tax—are unlawful and a “disproportionate and discriminatory interference” with the European Union’s right to free movement of services.

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The new regulations are scheduled to go into effect October 1. The association further argues that the regulations will result in an absence of proper supervision and enforcement, which will encourage the growth of poorly regulated operators, thus creating more risks to the British consumer. According to published reports, several U.K. analysts feel Gibraltar—a protectorate of the U.K.— could win its appeal and delay the new regulations.

Denmark Sees Decline in Online Poker

anish gambling authority Spillemyndigheden has released figures showing a 20 percent decline in the country’s online poker market. Revenues dropped from $8.9 million in the second quarter of 2013 to $7.1 million for the quarter in 2014. The 2013 figures already represented a drop from revenues of $9.8 million in 2012. The regulator is predicting about $32.3 million for the year, a 7.7 percent decrease from 2013 and an 18.2 percent decrease from 2012. General casino games remained strong in Denmark, however, rising 12.5 percent from $43 million in 2013 to $48.5 million in 2014.

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MARKETING

Marketing to Millennials Advertising to people who don’t like advertising

irst, I need to tell you all something important: I am not a millennial. I was born in 1976, so I came at the very tail end of Generation X. This means I don’t live in my parents’ basement. Nor do I exhibit an air of entitlement or share every detail of my life on social media. I have a job, and I don’t require my bosses to shower me with positive feedback every five minutes. Also, my mom didn’t accompany me to my job interview. That’s sarcasm, of course, but all of these things have been said over and over again about the 82 million people born between the early 1980s and 2000s. A quick Google Trends search of the term “millennial” illustrates that mentions of this generation have reached a fevered pitch in 2014. (Most of those mentions are probably from disgruntled Gen Xers, if I’m going to round out my sarcasm.) So what’s the big deal? The numbers. There were 77 million baby boomers, about 50 million Gen Xers and now 82 million millennials. Eighty-two million. That’s that largest generational group of humans in the history of mankind. As they continue to enter adulthood, millennials will change our world more profoundly than any other generation before it, including the boomers. What does this mean for your casino’s marketing—and perhaps more importantly, what can you do about it? Think like a demographer. You understand your current audience, which is mostly made up of boomers and some older Xers. Look at your player database and map the birth years of your players. Then think beyond the next quarter, for just a moment. What will the graph look like in five years? Ten years? The mix is going to look a bit different. The youngest boomers are just turning 50 this year, so Generation X and the millennials are about to come into the crosshairs in a pronounced way. Study up. Do some research. As I’ve mentioned, there is no shortage of words being written on millennials. You’ll have to sift through a lot of stereotypical drivel like the mess I wrote at the beginning of this article, but you’ll start to see

By Rich Sullivan

some macroeconomic trends that have legitimately affected the perspectives and behavior of this generation. In my opinion, understanding the motivations and thinking of your audience is one of the most important keys to marketing. Segment your messaging. Given the marathon nature of branding, this generational shift is going to require a gradual evolution of your brand approach rather than something that has to happen overnight. However, you can begin working on smarter audience segmentation now by adding richer demographic and psychographic information on players in your database. This will allow you to segment your messaging and media placement to deliver creative content tailored specifically for your various audiences. It has been well documented that millennials have extremely sensitive antennae in regards to ad-

perceptions are shaped by interactions happening online—everything from a single tweet to the booking experience on your website to the confirmation email your player receives post-purchase. Your brand, regardless of heritage, is now a digital brand. It is equally important to understand that technology is not a strategy. Simply being in the space isn’t enough. Remember those sensitive antennae milliennials have? They’ll see through a half-baked effort. So this rules out “we’ve got a Facebook page” as your digital strategy. For our clients, we like to apply a concept to digital whether the effort is part of a larger integrated campaign or a one-off experimental execution. For example, we just launched a Zombie-themed mobile game as a loyalty component to one client’s Halloween promotions. This is the kind of thoughtful approach millennials will think is cool.

‘‘

It has been well documented that millennials have extremely sensitive antennae in regards to advertising and generally reject being “sold.” Couple this with the fact that the group is wallet-conscious and seeks experiences over accumulation of material goods, and you’ve got to start teasing out this segment and trying new things.

vertising and generally reject being “sold.” Couple this with the fact that the group is wallet-conscious and seeks experiences over accumulation of material goods, and you’ve got to start teasing out this segment and trying new things. Experimentation. Any given marketing program for a casino property consists of myriad tactical executions. You don’t have to upend your entire program to start an effort to attract younger gamers. In fact, one of the benefits of the fragmented media landscape we operate in today is the ability to siphon off a single channel and experiment. That usually means digital, and often social media, because of the relative flexibility of the platforms and perceived low cost of implementation. Nonetheless, the devil is in the details. Get Digital. Every brand is now a digital brand. Everyone, but particularly millennials, relies on digital channels to connect to the world. Brand

120 Global Gaming Business OCTOBER 2014

’’

Design matters. Tone of voice matters too. Again, the millennial generation is seeking authenticity, not polished sales pitches. They appreciate good design and honest language. If you consider the other products and services they use on a frequent basis, many are technology-oriented—which is a category that fuses clean industrial design and user interface design (think Apple). So your typography matters, your photography matters, your words matter. In a crowded category like gaming, great design can be a differentiator. The 82 million millennials are coming to your casino soon. And their moms won’t be dropping them off. Get ready. Rich Sullivan is CEO of Red Square Gaming, a fullservice advertising agency that focuses on casino brands. Follow him @redsquaregamers or email him at rich@redsquaregaming.com.

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THE EVOLUTION OF THE CASINO

EXPERIENCE Lessons from three innovative members of the gaming industry Part 2

By Mark A. Birtha EDITOR’S NOTE: Part 1 of the discussion on developing casino experiences vs. selling commodities truly hit a chord, as the response to the commentary affirmed the need for the spotlight. Finding the way back to true hospitality and the need, now more than ever, to create emotional connections with our guests is paramount. Delivering extraordinary products and services by employees focused on excellence in an environment where the details tell their own story has never been more important than today.

he cover of Forbes magazine on September 8, 2014 spotlights the luxury retailer Hermes. The quote from CEO Axel Dumas is clear and poignant: “Our business is about creating desire.” The focus is not on selling incomparable scarves or the most beautiful ties or iconic bags; the company’s vision is creating an emotional connection by purveying status and sophistication through the highest quality of craftsmanship. Will paying hundreds of dollars more for a Hermes scarf keep you any warmer in the winter, or look that much more colorful and vibrant? It is about function vs. experience. One section in the article sums it up clearly: “At Hermes any lasting premium derives from mystique. After all, selling a commodity ultimately boils down to one thing: price. But selling beautiful objects that people don’t inherently need? That requires a more complicated formula that Hermes has mastered.” In the latest round of Apple commercials, they feature individuals doing truly extraordinary things in their lives. The imagery and music elicit a strong inner yearning as you see their technology extrapolated into the very fabric of our existence in a manner that simply enhances our ability to do the things that we will value and remember for a lifetime. 122 Global Gaming Business OCTOBER 2014

The ads leave you with the question, “What will your verse be?” They don’t say a word about an iPad or iPod or using a Mac to get your work done. It is time to get back to basics. If Starbucks’ “Third Place” is your inspiration— or maybe BMW’s passion to create the “Ultimate Driving Machine”—then there is a much bigger vision of creating experiences vs. selling commodities that should motivate your day-to-day efforts. In this next installment, three industry veteran experts have provided their take on how best to reinterpret and realign the key elements of our business: the design, the employees, and the experiential product. Paul Heretakis is an award-winning architect who has worked on creating enlightened spaces in gaming hospitality venues around the world. Arte Nathan is the human resources guru who partnered with Steve Wynn for decades to redefine the approach to creating a culture of team members relentlessly dedicated to delivering extraordinary interactions with guests. Charlie Skinner is a passionate operator who has worked in some of the most challenging and competitive gaming marketplaces, but his key to operational success always remains the same.

“Your brand is your culture.” —Tony Hsieh, CEO, Zappos

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Paul Heretakis

It’s All In The (Design) Details Place-making, dream-weaving, and experiential environments—words that designers speak to all the time. But it takes a visionary client who wants to redefine what is expected in order to create a project that truly resonates, constantly evolves, reinvents and never stops surprising. That experience starts at the front door—the first impression. It’s the first time you ask, “What should the customer see, feel, desire?” From that very first moment, you need to put yourself in the shoes of that customer and guide them through the space, control their movements, their experience, craft their emotions, fulfill their dreams. The designer’s personal ego must be put aside. Remember, you are not creating your own dream or vision; you are creating a canvass for others to build their own dreams upon. Each space must be enjoyed in various ways, must expose itself further with each return visit. Every time I revisit Wynn, I see another tassel, molding, fabric or color that I missed the time before. It all starts with a vision, a story. “I want the customer to believe they are in a dream. This is my customer and they have never seen life brought to them on this level before; that it must be a dream.” To use a restaurant as an example, its takes an all-out effort of the owner to set the tone for success: Constantly ask the designer to create what has not been created before, empower the chef to cook as no one has ever cooked before—to challenge everyone involved to deliver a level of service that is second to none. Aqua by Michael Mina at Bellagio did just this—it stunned designers with its unique ambiance and raised the bar with foodies as well with its unparalleled cuisine when it opened. The designer starts with space—large, small, tall, low. How do I compress the experience until I decide to let the customer feel the explosion of space? Philippe Stark did this so well at Felix in Hong Kong, compressing the guests in a tiny elevator lobby, turning you around the copper bar wall until the city of Hong Kong explodes upon you—still impressive to this day. Very subtle design details and seamless operational efficiencies are paramount. Although most may go completely unnoticed individually by the customer, collectively they are appreciated and remembered forever as a complete experiential moment. For those that reach the highest plateau, they are emotional and burn an image in your mind to last a lifetime. All three components (design, service and product) need to balance, complement and elevate each other. Have you ever received the check for a meal or a hotel stay and think that is was wrong—too inexpensive for such memories? So good you repeat it to everyone that will listen? The grand hotels of Europe have delivered those dreams for hundreds of years. Cipriani’s mastered it on multiple continents and Steve Wynn has reset that bar every time he opens a new property. Do you have the vision to change… to desire… to ask… to dream? Paul Heretakis, RA, vice president of WESTAR Architects, has over 15 years of experience overseeing hospitality design and mixed-use master planning projects throughout the world. His portfolio includes over 1,000 casino, restaurant, retail and hotel projects throughout the U.S., Europe and Southeast Asia.

Arte Nathan

Creating a Service Culture Providing guests with incomparable experiences that create emotional connections and long-term loyalty is the goal of every hospitality and gaming professional. Throughout my career as Steve Wynn’s HR guy, I was tasked with building a culture to support that kind of service. Here’s what I learned about making that goal a reality. Start with hiring the right people: not the ones who only have experience, but those who also have the right attitude. This attitude is found in those who are genuinely optimistic: they’re open to learning, interested in helping others, and always looking for those who are looking to be served. They adapt to dynamic situations and enthusiastically join with others to create incomparable experiences. They’re the first ones to volunteer, and the last to leave: they’re focused on doing what’s right rather than only what’s expected. Create a culture that nurtures the performance you want: define exactly what you expect, and why, show them how, provide relevant and continual feedback, ask for input and suggestions, and let them know you care. This shows that you’re engaged in what they’re doing, and they will respond in kind: they’ll be engaged in providing the service that creates satisfaction and loyalty. Just remember: these are professionals and you need to give them the support and space they need to do their job. And give your employees the respect they deserve: high performers don’t need to be micro-managed, but they also don’t want to be ignored. Check with them regularly, treat them as colleagues, and remember to say thanks. Arte Nathan spent the last 30-plus years as a human resources professional and thought leader; for most of that time he was the HR executive for all of Steve Wynn’s casinos worldwide. Currently he teaches at UNLV and writes about leadership and employee engagement.

Charlie Skinner

Creating The Experience We work in interesting times in our industry, especially when you consider the fact that we sell a product that no one essentially has to have. We are selling an entertainment experience in what is a highly competitive market today. As operators we are working to get more money from a customer that is saving more as a result of the Great Recession, and dealing with substantial losses in home equity, and there are more and more entertainment offerings both offline and online. These are these things as an industry we are all aware of: So what can we do about it? Operating in one of the most competitive markets for many years (Las Vegas locals), there is something that all operators can do to overcome these challenges. We can offer an experience that our guests will feel great about and that will keep players coming back. Every operator in the world talks about guest service, so this is nothing new, yet some operators can execute on it and OCTOBER 2014 www.ggbmagazine.com 123

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“It is crucial to recognize, reward, and celebrate accomplishments.” —Rosabeth Kanter, Ernest L. Arbuckle Professorship at Harvard Business School

some can’t. Why doesn’t every casino give world-class service? It comes down to the vision and culture of the property and the people. Does the property that you visit or work at have a vision for guest service? Educating all your team members to understand that our guests have a lot of choices is essential, and following up by explaining to them that the No. 1 difference from one property to the next is clearly the people. Relentless focus must be placed on this to drive continual improvement and consistency all of the time. One common area for improvement across many casinos is taking care of the guest that “we don’t know.” As operators, we know our top players and they give us several visits a month; we know their family and where they work and we have a relationship with those guests. It is the new guest that walks into the casino that we need to win over, and often this simple fact is forgotten. It all goes back to the culture and the people. It is important to foster and train your teams to really go above and beyond when they meet guests and to try and make that personal connection upon first encounter. Most casino operators offer comment cards, survey guests, train employees for guest service through their human resource departments, and do the necessary “check the box routine” in measuring whether or not their property is giving good service. If you have these bases covered and think that is a program that will create elevated experiences, then you have some more to learn. This is a fraction of what it takes to really provide a long-lasting relationship with players. It is simply one spoke in the wheel of what needs to be done. Are you hiring the right people? The kind of people that let their smile shine through with every encounter, and that genuinely care about being great at what they do? If you start there, you have a good start to accomplish your guest experience goals. Going through a fast food drive-through recently, the young lady taking the order and cashiering was shocking. She was so energetic and sincere that it felt like patrons were dealing with a top server in a five-star restaurant. It was not what she said but how she said it. She had an energy and a sincerity about her that made you realize: This management really gets it! She not only asked everyone how their day was, but went on to thank every customer for coming in with the attitude like you were a visiting family member. What an experience this was. There is no doubt that this young fast food attendant will move up in her career. These are the types of experiences that we should all want our team members to strive to give. Here is another story of one other person that will never be forgotten about when it comes to the guest experience. The University of Arizona had a student dining hall that served breakfast and lunch, and they had a morning breakfast buffet. Students by the thousands often went there because of one particular food server in the buffet line. Her name was Betty, and she was known by many in a school with over 35,000 students. Every experience between her and her “guests” went something like this: “Hi honey, how are you doing today? Can I get you started with some fresh eggs or maybe some French toast? I’m so glad you’re here today; 124 Global Gaming Business OCTOBER 2014

this food is really going to get your day started off right.” This sounds like an exaggeration, but when the younger students bring this experience up to the older students, or even when sharing stories with alumni who graduated years ago, they all start laughing and consistently say, “You mean Betty.” She was a legend on the campus because of her energy, compassion and sincerity. Thousands of students knew who Betty was, and she went out of her way to make every encounter memorable. No real cap-ex investment needed for this. Another great example of guest service occurred recently at one of Station Casinos’ properties. It once again illustrates culture and people at their best. A guest sat down at a machine while the slot attendant in the area was busy with another Charlie Skinner player and the beverage server was working her way back from the bar. A security officer approached this guest due to the fact that she had just sat down and he knew that his other team members were tied up at the moment. He introduced himself and mentioned the names of his other team members working with him in the section, and that they will be over shortly. He then asked if he could do anything in the interim for the guest. This guest was not only impressed by the communication, but also by the energy and passion of the security officer who was working to help the slot attendant and server. Again, this guest experience speaks to the culture of the property and the people. This guest made a point to convey this story, which speaks volumes to her experience. Guess how many times she has come back, and with lots of friends? These are just a couple of examples of experiences that are great examples and used to inspire and to lead our teams to deliver these types of results. Lastly, are your beverage servers yelling out cocktails as if in a cattle call? Are your dealers just going through the motions or are they helping the players to have a fun time? Are all of your employees reaching out to the guest and giving experiences like the fast food attendant or like Betty? Only you can answer that, but as an industry we should all strive to give this type of experience to our guests. Charlie Skinner has spent 18 years in the gaming industry with emphasis on the Las Vegas locals market. Starting out at IGT, Skinner was an executive with United Coin Machine Company, and currently serves as vice president of operations for the Wildfire Gaming division at Station Casinos.

And In Conclusion This is just the beginning of the revolution gaming executives must undertake to redefine each of our respective businesses around the globe. Like many of the truly iconic brands, products and services in our world that have reached a status above and beyond selling commodities, we too must find our way within these three key spaces to create new stories our guests will be telling for years to come. Dream a dream. Define that vision. Instill a mission in every person. Engage the guest with relentless and incomparable attention to their needs, wants and expectation and not our own. Take them to a whole new level they never thought possible. Put the black and white papers down; hit the floor and illuminate the warmth and bright colors of hospitality. “What will your experience be?”

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GGB

GLOBAL GAMING WOMEN

Scholarship in Action The Value of Networking, Education and Determination

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By Alina Harris Director of Hotel Operations, Arizona Charlie’s Decatur Hotel and Casino

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126 Global Gaming Business OCTOBER 2014

his summer, I attended the MGM Resort Foundation’s Women’s Leadership Conference through Global Gaming Women’s (GGW) scholarship program. The conference reaffirmed my commitment to completing my education, energized my career plans and inspired me to surpass merely getting by each day. Sometimes hearing other people’s journeys helps us realize the success we can achieve. GGW’s Charitable Education Fund creates opportunities for women who may not have the financial resources to attend conferences and educational programs on their own. Attending a conference such as the Women’s Leadership Conference opened my eyes to a perspective of what you can achieve as a woman in our industry and how to build the confidence to begin. Not only does GGW offer support to the Women’s Leadership Conference, but two other scholarships as well—including online classes through the International Game Institute at the University of Nevada, Las Vegas and attendance at educational sessions of the Global Gaming Expo Conference. In addition to its scholarship program, GGW’s networking events held throughout the year, which are often no charge to attend, are a great forum to share ideas and experiences at local gaming conferences with other women of the industry. This year’s conference was a catalyst for change in my life—a wake-up call for my career. The seminars I attended were inspiring and led by women with whom I could identify and who I could admire. It was an easy, comfortable environment to engage and to network with female gaming colleagues. Most importantly, the conference really boosted my can-do attitude—Stop sitting on the sideline and go get it, Alina! I left motivated to increase my networking skills and to devote more time to volunteering to keep my perspec-

tives fresh. I plan to keep in touch with the women I met and use their career advice to read, learn and stay engaged within the community. Although I was motivated to attend the conference because of its focus on female growth and leadership, my real motivation was my education. Juggling a full-time job while finishing your college education online is not easy—let alone finding time to contribute to my family of three children and a husband. Between long work hours and late-night emails, weekend papers and reading assignments, as well as cooking and chauffeuring the kids around, it’s hard to find a moment for yourself. There were times when I asked myself, “It is really worth it?” The women I met at the Women’s Leadership Conference reassured me it is. Fortunately—I am also driven by my employer Arizona Charlie’s Decatur—which provides me with tuition assistance for my education. I enjoy where I work, so I am hoping that the combination of an undergraduate degree and networking will help me seek professional growth. Typically, I am a reader of this column, not an author of it, so my advice to fellow women of the industry looking to further their career, to be inspired to do more or to do better is simply: find the courage to introduce yourself. Whether you’re at a conference, a volunteer event, a company-wide meeting or even just walking across the office, you’ll be surprised how much people have in common with you and who may be willing to help, if you simply make a small gesture to begin to build a rapport. You will not only make new business connections, but new friends. With my newfound determination and improved networking skills, I plan to grow in my current career path and complete my college education. GGW has helped motivate me to do this, and it can help you, too. Simply make an introduction—like I did.

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A Strategy for Spend Identifying and rewarding nongaming spend to determine player value continues to be enhanced throughout the industry BY RODRIC J. BRADFORD

n the past decade, the issue of tracking non-gaming spend in casinos has gone from a peripheral cosmetic luxury for operators to an integral, strategic part of revenue management. As part of that transition, recreating the “new” player value identified with non-gaming spending has forced the industry to take a new direction, especially with a younger generation that is focused more on retail than the roulette wheel. “We hear a lot about the need to expand the industry’s reach among millennial audiences, and converging non-gaming casino experiences with gaming activities is a powerful mechanism to do so,” says Tom Soukup, vice president of research and development for Konami Gaming. “Millennials exhibit the strongest non-gaming behaviors, trending toward social activities and experiential luxury resort incentives.” Tracking Trends To meet this changing demand, Konami offers its Synkros casino management system, which delivers actionable non-gaming data analysis through business intelligence tools within Konami Enterprise Intelligence (KEI). “It truly gives a 360-degree view of patron worth, enabling operators to make business decisions that impact their entire operation, from customer service to

player reinvestment,” says Soukup. “Synkros empowers operators to track, target and convert those markets by appealing to the core pursuits and desires that drive them to the property. Our system is able to pinpoint all the varied facets of carded customer groups so operators can appeal to the unique preferences based on past behavior. Ultimately, operators can make better decisions when armed with a more complete picture of each patron’s total worth.” Identifying total worth is what the industry revenue management consulting firm Duetto has done with its appropriately named product, GameChanger. It is a web-based application developed exclusively for casino hotels. Staffing a team of highly experienced gaming professionals at its Las Vegas office, Duetto aims to help casino hotels leverage cutting-edge advances in technology and change the way they approach revenue management, especially for non-gaming guests. GameChanger ensures casino hotels select and retain their most profitable customers, accounting for dynamic demand, occupancy and segment lines, assessed by each individual customer segment, room type, offer or discount. “Our role is to fundamentally change how player guest value is identified, because it all goes to the casino hotel’s bottom line,” says Patrick Bosworth, cofounder of Duetto.

Our system is able to pinpoint all the varied facets of carded customer groups so operators can appeal to the unique preferences based on past behavior. Ultimately, operators can make better decisions when armed with a more complete picture of each patron’s total worth.

“

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—Konami’s Tom Soukup

128 Global Gaming Business OCTOBER 2014

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Operational Mandate MGM Resorts International began awarding tier status based on both gaming and non-gaming spend in 2011. Since then, the operator has logged a steady increase in the rate of tracked non-gaming spend such as shows, concerts and nightclubs, as well as engagement with their player rewards â&#x20AC;&#x153;M life Moments,â&#x20AC;? exclusive experiences available only to M life members. â&#x20AC;&#x153;In 2013 we introduced an important technological advancement to help members,â&#x20AC;? says Josh Swissman, vice president of loyalty marketing for MGM Resorts International. â&#x20AC;&#x153;We use a proprietary technical application to review all hotel reservations and compare them to our M life database to ensure the member gets tier credits for all other non-gaming spend on their folio. We believe the best way to increase non-gaming spend is to make it valuable for our members.â&#x20AC;? MGM Resorts has done this by improving the communication process, engaging employees and actively explaining the benefits of M life enrollment through multiple channels, including at M life desks and front desk upon guest check-in. â&#x20AC;&#x153;Customers increasingly expect to have personalized communications and incentives based on their transaction history and tracked preferences,â&#x20AC;? says Swissman. â&#x20AC;&#x153;However, if you are going to collect customer preferences, you must be prepared to execute on that information throughout the entire enterprise.â&#x20AC;? Card Control Taking the trend of increased focus on non-gaming spend to the next level is Sightline Paymentsâ&#x20AC;&#x2122; Loyalty Card Plus, the first gaming industry-specific prepaid card solution that allows guests a safe, secure and responsible way to enjoy gaming on and off casino properties, while allowing gaming operators to retrieve and analyze non-gaming behavior on and off the property. One of Sightline Paymentsâ&#x20AC;&#x2122; largest clients is Golden Nugget. â&#x20AC;&#x153;Our systems allow casinos to incentivize playing behavior by reviewing non-playing behavior, as well as issuing prepaid cards to retailers,â&#x20AC;? says Omer Sattar, executive vice president of strategic partnerships and initiatives for Sightline Payments. â&#x20AC;&#x153;It increases loyalty to the casino operator and increases their non-gaming spend once they are on the casino resort property.â&#x20AC;? Sattar notes that a casino guest who spends $5,000 in the retail sector and $2,000 in the gaming sector during their stay is usually valued less than the guest who spends $3,500 in the gaming sectorâ&#x20AC;&#x201D; half the dollar value to the propertyâ&#x20AC;&#x2122;s bottom line, but more value in the eyes of the casino operator. â&#x20AC;&#x153;We founded this company four years ago to solve problems like this,â&#x20AC;? says Sattar. â&#x20AC;&#x153;Better tracking and a cashless system for operators makes for a more efficient process while identifying more opportunities to add to the casinoâ&#x20AC;&#x2122;s bottom line with non-gaming spend.â&#x20AC;?

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The future of tracking non-gaming spend is to have a deeper relationship with the member through strategic partnerships like the ones we currently enjoy with Hyatt Hotels, Royal Caribbean Cruise Lines and Southwest Airlines.

“

”

—MGM’s Josh Sweetman

Value Proposition ing spend will continue to gain momentum as a driving force within the For Konami, tracking non-gaming spend is done with the KEI Patron industry as the millennial generation further penetrates casino floors in the Worth Evaluation tool, which gathers highly configurable performance United States and across the globe. indicators to determine overall patron value across gaming and non“Until recently it was very difficult to generate advanced reporting of gaming amenities. Integrated with existing point-of-sale and hotel interthis magnitude on non-gaming spend, let alone automate it,” says Soukup. faces, the tool is able to compile a total worth score for each casino “Now, technology makes it available in real time so operators have the patron in the property’s database to better understand their full value, most accurate and up-to-date information upon which they can which is essential for effective and profitable marketing and service inirely to identify and capitalize on opportunities. Everyone is tiatives. Additionally, the data can be leveraged to KEI’s report more conscious than ever about the potential value of nonwriter and centralized dashboard to generate ad hoc reports, gaming analytics, but as awareness grows, specialization will queries, summaries and analysis. follow, and it becomes more competitive for casinos to con“With the KEI patron worth evaluation, we have built a nect with customers in ways that are unique, tarproprietary point loyalty program that automatigeted, personal and authentic.” cally calculates a monthly percentile score beMGM Resorts International is already tween one and 100 for each patron, based on a doing this through its M life program. custom configurable RFM (recency, frequency “The future of tracking non-gaming and monetary) ratio value,” says Soukup. spend is to have a deeper relationship with the “Collecting scores throughout all connected member through strategic partnerships like the gaming and non-gaming activities, Synkros genones we currently enjoy with Hyatt Hotels, erates each customer’s total worth score for key Royal Caribbean Cruise Lines and Southwest business applications including market segmentaAirlines,” says Swissman. “We have also seen tion, trend analysis, tiered loyalty club programs, great success by launching the myVEGAS social customer service and archival reference. This game and app. These extend spend recognition valuable player information is carried through and exposure to our M life loyalty program to the Synkros marketing suite and can be used to members between visits to our resorts.” launch rewards and bonus events that target The possibilities of tracking and rewarding carded players based on criteria of the operator’s non-gaming spend are limitless because the revchoosing.” enue is not limited to a fixed location like a slot One of Duetto’s value propositions for pomachine, roulette wheel or blackjack table. As tential clients is the ability to leverage not only —Duetto’s Patrick Bosworth more national retail chains begin to participate hotel room spend, but also spend on non-gaming and are implemented in the programs, retailers and special events like concerts and sporting may take to casinos in the early 21st century like events, both of which are popular with the milthey took to shopping malls in the late 20th century. lennial demographic. “Once guests at casino resorts realize that the loyalty program is not “We are bringing the advanced technological resources and strategies exclusive to the casino and begin to use their loyalty cards for non-gaming that are only seen in Silicon Valley to the gaming industry,” says activities such as dining, entertainment and retail, they are able to earn the Bosworth. “It is a dramatic leap forward for the gaming industry, and same type of rewards and incentives traditionally offered only to casino the difference is showing up in the bottom line.” players,” says Soukup. “Tracking of non-gaming spend will become inFindings For The Future creasingly precise and comprehensive, so industry operators need the No matter the geographic location of the casino operator, from Macau proper systems technology in place that will adapt and evolve to meet their to Mississippi, or Las Vegas to Louisiana, everyone agrees that non-gamunique needs in whatever situation.”

“It is a dramatic leap forward for the gaming industry, and the difference is showing up in the bottom line.”

130 Global Gaming Business OCTOBER 2014

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CUTTING EDGE by Frank Legato

Fast Recycle Product: MEI SCR Banknote Recycler Manufacturer: Crane Payment Innovations

rane Payment Innovations (CPI) will be showcasing the new MEI SCR banknote recycler at G2E Booth 4747. Attendees will have the opportunity to learn how the SCR makes payment transactions faster, easier and more secure than ever before. The SCR combines the performance and reliability of SC Advance technology with the benefits of note recycling as part of a total cash management solution. As a single closed-loop system, the SCR accepts, accounts for and stores cash from one player to give as change to the next. This allows operators to pay out winnings completely, in higher-value notes, without worrying about issues like hopper starvation. And by holding up to 60 notes on each of its two recycling drums, the SCR provides the capacity required for longer machine uptime, leading to an improved win per machine and, ultimately, lower operating costs. Note recycling also allows players to stay at the machine as opposed to using a coin changer, a trip that takes time away from play and also limits privacy.

The SCR is equipped with the same acceptor head as the one used by the proven SC note acceptor platform, of which there are more than 1.5 million units installed globally. The recycling drums utilize technology from MEI’s four-denomination BNR (bank note recycler) and single-denomination VNR (vending note recycler). What makes the SCR unique among note recyclers are its security features. The SCR offers exceptional fraud defense and internal security controls. Its architecture includes a removable anti-stringing mechanism, as well as a specialized inventory management system that accurately tracks the number of notes going into and out of the machine. It also provides complete note accountability when powered down. Access to system components, when needed for maintenance, can be done without providing access to secured notes. Novomatic is currently integrating the SCR into its new Giga Star cabinet. It will soon enter beta test in the German AWP market with the goal of being available for sale before the end of 2014. For more information, visit cranepi.com.

Jackpots to Go Product: Jackpot Controller Manufacturer: Gaming Support

aming Support’s Jackpot Controller allows casinos to generate various types of jackpots to make the slot floor more attractive for players while keeping it easy for the operator. With no server requirements, its truly modular architecture gives operators access to multiple jackpots in the same network on selectable slots, and allows them to conveniently configure a single jackpot to an almost limitless combination. Designed to be easy accessible, the intuitive design of the app hardly needs explanation, and the operator will have full control at all times, remotely managing jackpots, updating settings, emphasizing jackpot values and triggering special effects—all from the comfort of an iPad. Using mystery or progressive jackpots in a mixed operation, a gaming machine can be assigned up to 32 jackpots and still only require a single slot interface board. The product features options including multi-game, multi-denomination and various scheduling options, to satisfy operator expectations in a cost-effective manner.

Key benefits: • Multi-denomination option • Multi-game option • Multiple jackpots in same network on selectable slots without server • Single iPad user control for all jackpots in the system • Modular architecture almost limitlessly expandable • Up to 32 jackpots assignable to a single slot machine using only one slot interface board • Mystery and progressive mixed operation • Max number of hits feature • Start and end date/time selectable • SAS: EFT/AFT/legacy bonus support for payment directly on slot machine (Note: for Multi Denom/Game SAS Game ID is required.)

For more information, visit gamingsupport.com.

132 Global Gaming Business OCTOBER 2014

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FRANKLY SPEAKING by Frank Legato

Marking (and Stacking) the Deck

VICT O

R RIN ALDO

ruce Koloshi has an interesting strategy for winning at poker. Cheating at poker, I should say. Koloshi pleaded guilty last month to cheating at poker at the Mohegan Sun casino in Connecticut. It appears that one night in September 2013, he somehow managed to mark the cards at a poker table with what he thought was invisible ink. He had special contact lenses so he could detect the invisible ink and rake in the dough. He ran into one little problem: Evidently, someone sold him defective invisible ink. The surveillance cameras picked up the markings. Boy, it’s getting so you can’t even trust invisible ink salesmen to be honest anymore. What’s this world coming to? The story that came out on his guilty plea—he got the 10 months he already served in exchange for the plea—said the reason he was trying to cheat was because he needed money to make bail in Louisiana, where he was facing felony charges for the same kind of invisible ink caper. You don’t suppose he went back to the same invisible ink salesman after he was busted in Louisiana, do you? Some people never learn. Or maybe it wasn’t the ink at all. Maybe the contact lenses were defective. I’ll bet he bought them from the same guy who sold him the ink. Or, maybe he just bought regular ink and convinced himself it was invisible. Once, I sprayed myself with this spray I thought was going to make me invisible, and waltzed right into a casino cage. They saw me right away, and wrestled me to the ground. “Thought you’d get away with the old invisible spray trick, did you?” I remember one guard saying. Well, just as soon as I made bail (I got the money marking cards in a poker game), I went right back to the invisible-spray salesman and demanded my money back. Would you believe it? He tried to sell me invisible ink. As it turns out, Koloshi has prior cheating convictions in Illinois and Iowa. Clearly, he needs to change professions. He’s just not very good at poker cheating. Maybe some night school? Barber college? Clown college? OK, now that I’ve strangled all the shtick out of that story, let’s go to New England. It says here that Massachusetts could have a vote in November to repeal its casino law because of market saturation, and because some religious leaders think gambling is immoral. And it says here that a new study has concluded that Maine could easily handle the business of another casino. First of all, to the anti-gaming forces in Massachusetts: You’ve got a point about oversaturation, but get off your moral high horse already about gambling. People have been gambling since we crawled out of the sea. I 134 Global Gaming Business

OCTOBER 2014

wouldn’t be surprised if history’s first bet was made between two primordial humans on how many legs they would eventually have. And to Maine: Have you not read the news at all this year? Do you see what’s happening to my beloved Atlantic City, where the only secure job is at the company that prints the WARN notices? News flash: We have too many casinos in the Northeast. Even in Pennsylvania, recently the Golden Boy of Gaming, there are too many horses at the trough. The greater Philly area has so many casinos they’re thinking of putting neon on the William Penn statue on top of Philadelphia City Hall. When I started writing about this industry, there were two gaming states: Nevada and New Jersey. That was it. Everyone in the industry knew each other. Going to a trade show was like going to a family reunion. One with, like, lots of liquor. Now, the industry’s spread all over. You can’t walk out your front door without tripping over a craps table. OK, it’s not that bad, but when the strip mall in Bensalem, Pennsylvania is as close to a casino as the Forum Shops at Caesars, I pretty much think we’re good on capacity. Heck, I just read that they’re opening up a pachinko parlor in Utah. In Utah. Yes, it’s only pachinko, but isn’t that just gambling for prizes instead of cash? Talk about moral objections to gambling. In Utah, they have moral objections to taking cough syrup. Oh, what the hey? For all I know, we’ve turned the corner with this saturation thing, and from this point forward, any new casino opening in the Northeast can be assured a steady stream of gamblers and millions in tax money for state coffers. Now, if you’ll excuse me, I have an appointment with my invisible ink salesman.

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GOODS&SERVICES MULTI-STATE PROGRESSIVES LAUNCHED he long-planned Tgressive multi-state projackpot link is up and running between Nevada and New Jersey. The system originally connected New Jersey DGE Director 600 slots in Nevada David Rebuck says the to 100 in Atlantic system will provide “huge City through Bally’s jackpots.” Cash Connection link, although three of the 11 casinos in Atlantic City originally on the network—Revel, Showboat and Trump Plaza—closed in early September. In planning for two years, the system received approval of the New Jersey Division of Gaming Enforcement, and went live August 20. “The division is pleased to have been at the forefront of passing regulations and reaching out to other jurisdictions to enable this expanded gaming opportunity for Atlantic City,” said DGE Director David Rebuck. “Much like multi-state lotteries, this new technology and cooperative regulatory agreements will allow combined progressive jackpots to grow, which should be very appealing to players looking for the opportunity to play for huge jackpots.” When the Cash Connection interstate widearea progressive link went live, jackpot totals for Nevada and New Jersey were combined for an immediately larger reward. The combined link started with a primary amount of $2,206,417.70 and continues to grow. The multi-state link features Bally’s hit games including Titanic, The Magic of David Copperfield, Betty Boop’s Fortune Teller, Jackpot Empire, Hot Shot Progressive and more. “Bally is excited to offer players in Nevada and New Jersey an enhanced progressive experience with the possibility of larger, more exciting rewards,” said Bally Technologies Senior Vice President of North American Sales and Corporate Marketing Robert Parente. “We believe that this is a great opportunity for the gaming industry: for casino operators, the potential for higher rewards drives player demand, while players will be thrilled at the chance to win an even larger jackpot.” Meanwhile, Nevada has officially joined IGT’s Powerbucks commercial multi-state widearea progressive link. Powerbucks’ networked games in Nevada casinos are now linked to casi-

nos in New Jersey and Deadwood, South Dakota. “The addition of Nevada to the Powerbucks link is a truly transformative milestone for the gaming industry and one that marks IGT’s continued leadership in the WAP space,” said Joe Sigirst, IGT VP of product development and global product management. “As the largest commercial gaming jurisdiction in the U.S., Nevada gives the Powerbucks network the critical mass needed to grow jackpot liquidity at an accelerated rate.” Currently, players can find Powerbucks games at Boyd Gaming and Caesars Entertainment properties in Nevada and New Jersey and at several casinos in Deadwood, South Dakota. As more properties and jurisdictions continue to join the link, the volume of eligible Powerbucks players grows, even furthering the jackpot fever.

GTECH/IGT DEAL CLEARS ANTITRUST HURDLE

12 months as of March 31. GTECH CEO Marco Sala will serve as CEO of the new company. IGT Chairman Phil Satre will serve as the new company’s chairman and IGT CEO Patti Hart will become vice chairman. The GTECH/IGT deal is one of two major consolidation actions announced within a month. Less than two weeks after the deal was announced, lottery giant Scientific Games Corporation announced it is buying game and system manufacturer Bally Technologies.

AGS ACQUIRES WAR BLACKJACK lot manufacturer American Gaming Systems, Sto expand which has spent the past few years in an effort its business in the U.S. Class III slot market, is entering the table game business. The company announced that it will purchase Casino War Blackjack and its suite of table games, notably War Blackjack.

ottery and casino supplier GTECH S.p.A. anLgranted nounced that the U.S. antitrust authorities have early termination of the required waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 relating to GTECH’s pending acquisition of leading slot manufacturer International Game Technology.

The federal action clears the first hurdle to finalization of the acquisition, which is expected next year. On July 16, GTECH and IGT entered into a definitive merger agreement pursuant to which GTECH will acquire IGT in a transaction valued at $6.4 billion, comprised of $4.7 billion in cash and stock, and the assumption of $1.7 billion in net debt. Under the terms of the transaction, GTECH and IGT will combine under a newly-formed holding company organized in the United Kingdom (NewCo). The transaction, which has been approved by the boards of directors of both companies, is currently expected to be completed in the first or second quarter of 2015. The transaction is subject to the receipt of required regulatory and gaming clearances, approval by GTECH and IGT shareholders, and other customary conditions. The combined IGT-GTECH entity would have more than $6 billion in annual revenues and more than $2 billion in cash flow based on the last

136 Global Gaming Business OCTOBER 2014

“We couldn’t be more confident in the quality of War Blackjack to kick off our inauguration into the table games business,” said David Lopez, chief executive officer of AGS. “Blackjack is the most popular table game in North America, and War is a fun, widely recognized game that is easy to learn. War Blackjack elevates the traditional blackjack experience by empowering the player to engage in an optional game of War prior to the blackjack game. If the player chooses, he can take his winnings from the War pre-game and increase his current blackjack wager. This creates a one-of-a-kind blackjack experience that is both exciting and suspenseful.” The acquisition is part of a major change in AGS’ product lineup, which started with the acquisition of Colossal Games and the revamping of the company’s slot development and management team under new CEO Lopez. Former CEO Robert Miodunski retired early in the year, and the company parted ways with Sales VP Paul Lofgren and Slot Development VP Olaf Vancura. Colossal Gaming, which was founded by former Casino Data Systems founder and CEO Steve Weiss, specializes in giant novelty slot machines and quirky, unusual standard slots. Weiss now runs Colossal as a division of AGS.

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IGT PARTNERS WITH LT GAME eading slot manufacturer International Game LwithTechnology announced that it is partnering Macau-based LT Game, the subsidiary of Paradise Entertainment Ltd. that has been a leader in live/electronic hybrid table games in the Asian market.

LT Game Chairman Jay Chun

IGT and LT Game signed a three-year agreement under which IGT will assemble and distribute LT Game products in the U.S. and Canada, and LT Game will serve as distributor for IGT slot machines in Macau. The terms of the agreement specify that IGT will distribute LT Game products on an exclusive basis across jurisdictions in the U.S. and Canada. IGT also is granted right of first refusal for distribution of LT Game products in Europe, the Caribbean, South America and Central America. “This alliance is unique to the gaming industry, combining the storied IGT legacy with the market intuition of LT Game to deliver a broader and more relevant product portfolio to our collective customers in North America and Macau,” said Eric Tom, executive vice president of global sales for IGT. “We will work alongside our partner, LT Game, in both markets to ensure that an exemplary level of customer care is maintained, while we also continue our direct sales and support for systems products in Macau.” “The agreement unlocks enormous potential for LT Game in the international market and marks a significant milestone in our history,” said Jay Chun, chairman and managing director of Paradise Entertainment. “It signals an important cooperation that will generate synergies for both IGT and LT Game. As a market leader in Macau, LT Game is well-positioned to assist IGT in their penetration in the domestic Macau market. Conversely, I believe the collaboration with IGT will enable LT Game to accelerate its expansion of global presence and distribution.” LT Game’s most prominent product is a hybrid electronic table game system that uses a live dealer and transmits games to a virtually unlimited number of electronic wagering stations.

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Chun and Paradise have been involved in a drawnout legal battle with the former SHFL entertainment, now a division of Bally Technologies, involving allegations that SHFL hybrid table games infringe on patents LT Game holds in Macau.

JCM FINALIZES FUTURELOGIC ACQUISITION ash-handling equipment supplier JCM Global C announced that it has finalized its acquisition of printing supplier FutureLogic, Inc.

competitive position as the leading supplier of peripheral products to the industries it serves around the world, including banking, gaming, kiosk, retail and transportation. JCM’s line of peripheral component products now includes bill validators, printers, digital media and FutureLogic printers and couponing solutions, such as the Ticket2Go, TableXchange and PromoNet systems products. In addition to the FutureLogic line of products, JCM will continue to market, sell, service and support the Nanoptix line of printers, including the award-winning PayCheck 4 thermal printer.

The deal’s closing further enhances JCM’s

FOXWOODS, OLG PICK BALLY SYSTEMS Slot, table and system supplier Bally Technologies reached agreements with two gaming entities for use of its proprietary systems. The company announced an agreement with the Ontario Lottery and Gaming Corporation (OLG) to provide the central casino gaming system solution throughout the province. In conjunction with the OLG’s modernization, OLG will be implementing Bally’s system technology to align and comply with “Conduct and Manage” responsibilities under Canada’s Criminal Code, and implement enhanced responsible gam-

11 - 12th November 2014 The Hilton Malta - St. Julians Providing a platform for the discussion of trending topics in the iGaming industry, this year’s sixth edition of the Malta iGaming Seminar will have a host of eloquent speakers providing participants insight into this dynamic, growing industry. Join us on the 11th and 12th of November 2014 and tap into the opportunity of networking among the key players. For more information, visit www.maltaigamingseminar.com /maltaigamingseminar

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bling tools to the casino gaming facilities and operations across Ontario. “It’s an honor to continue and expand our partnership with OLG to provide leading technology gaming systems throughout the province,” said Bally Technologies Senior Vice President of North American Sales and Corporate Marketing Robert Parente. “This agreement demonstrates our continued commitment to the needs of the Canadian gaming market, and we are very excited about working together to help OLG fulfill its modernization.” Later in the month, Bally Technologies announced that Connecticut’s Foxwoods Resort Casino will utilize the Bally Mobile Concierge. The agreement is part of a continuing partnership between Bally and Foxwoods. “We are excited to use Bally’s mobile platform to offer outstanding new benefits to our customers,” said Brian Charette, Foxwoods’ vice president of information technology. “Bally is a great partner that worked with us to create a custom app that will enable us to engage and market to our patrons before, during, and after their visit.” Bally’s cloud-based mobile platform enables casino operators to create and easily update special content and offers, and immediately distribute the information to targeted potential customers. Bally has created more than 150 features for casino operators to incorporate into their apps, allowing them to

INSIDER KNOWLEDGE INTO THE iGAMING INDUSTRY 07/08/2014 15:59

14 15 59

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entertain, educate, interact, market, and learn from their guests and players. Guests at Foxwoods can use the cloud-based mobile app to book shows, make restaurant reservations, check player club point balances, view promotions, and much more. The app is available for iPhone, iPad, Android, Blackberry and other devices.

SG GAMING COMPLETES LADBROKES INSTALLATION, ANNOUNCES CARRIGILL DEAL

G Gaming, a division of Scientific Games Corporation, announced that it has completed the rollout of its new Clarity cabinet to the Ladbrokes estate. The Clarity cabinet was installed in all 2,228 licensed betting offices in Ladbrokes’ U.K. estate and is a key element in the Ladbrokes 2014 strategy for maintaining a strong offer within the sector. Following initial trials of the Clarity cabinet in late 2013, Ladbrokes agreed in October to retain SG Gaming as its sole provider of serverbased gaming machines. The agreement extended the longstanding partnership between

SG Gaming and Ladbrokes, which began in 2010 and is scheduled to run through 2019. The product rollout was finished in just 14 weeks. On average, the installation of the new Clarity cabinets took 90 minutes per shop. SG Gaming uses a sophisticated system that allows for flexible delivery and installation dates. SG Gaming and Ladbrokes also worked in conjunction to deliver bespoke training to shop management and staff, and developed focused promotional plans with staff to aid the implementation of the new terminals.

KGM AND SCORE GAMING BRING NEW TABLE GAME TO DELAWARE hiladelphia-based gaming supplier PfromKGM has received final approval the Delaware Lottery to place its first casino table games in the state’s racinos. Through a partnership with Score Gaming, KGM introduced Golden 21 in August at the Casino at Delaware Park, followed with the placement of the game at Harrington Raceway a week later. Golden 21 is a blackjack side-bet game. Unlike other blackjack variations on the market, Golden 21 is both easy to follow and fun to play.

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The side bet is a simple two-card poker hand based on the first two cards a player receives during normal blackjack play. The straightforward nature of the game allows casino operators to keep the game pace moving without delays. “We are very excited to partner with the innovative game developers at Score Gaming,” said Jason Cohen, executive vice president of sales at KGM. “Their games, including Golden 21, are proving to be big earners for casinos in California, Colorado, Arizona and Las Vegas. We are happy to enable them to enter the Delaware gaming market through this partnership.” Among further advantages of Golden 21: Because a side-bet game needs to give players a return on their investment to be successful, Golden 21 provides a 26 percent hit rate, as compared to other side-bet games that only return 8 percent to 12 percent. A side-bet game must also deliver volume for the house, and Cohen reports that Golden 21 is getting a participation rate of 70 percent, compared to the average 30 percent participation rate for other side-bet games.

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tomer data that includes gaming as well as nongaming spend for more sophisticated room pricing recommendations and offers, according to uetto Research announced the the company. integration of its Duetto “Total spend data from Konami allows GameChanger hospitality profit us to price rooms down to the individual cusoptimization software with casino tomer based on their individual profit potenmanagement systems produced by tial,” said Marco Benvenuti, co-founder Las Vegas-based Konami and chief analytics and product offiGaming. cer for Duetto. “This means better Connectivity with insights and more revenue for our Konami allows Duetto casino resort and hotel customers. Duetto co-founder Marco Benvenuti to leverage rich cusOur application is built to bring casi-

DUETTO PARTNERS WITH KONAMI

nos the ability price all room types, channels and dates independently of each other to maximize profitability. These are powerful tools for resorts with a broad range of rooms and rates.” Konami’s patron management system tracks customer spend throughout the entire casino resort. Customers can use the same loyalty card at the tables, slots, spa, restaurants, golf course and anywhere else. The associated loyalty program tracks total spend rather than simply accumulating points. As a result, valued customers earn better deals and comps based on their patronage. “Guests should feel confident casino hotels will recognize and value their business in whatever form it takes,” said Steve Sutherland, executive vice president and chief operating officer of Konami Gaming. “This is the future of loyalty programs, and one good for both casinos and consumers. We anticipate a positive impact on profitability, guest experiences and operational efficiencies.”

PLAYTECH TO ACQUIRE ARISTOCRAT LOTTERIES laytech, the international designer, developer Ponline, and licenser of software and services for the mobile, TV and land-based gaming in-

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dustry, has entered into an agreement with global content and systems provider Aristocrat Leisure Limited to acquire Aristocrat Lotteries for €10.5 million in cash, subject to certain adjustments and satisfaction of closing conditions. It is anticipated that closing will occur shortly. Aristocrat Lotteries is a leading supplier of server-based-gaming and online client server solutions for interactive video terminals in both Norway and Italy. Its TruServ platform is wellestablished and accredited for the Italian market. Once complete, the acquisition will position Playtech’s land-based operation as one of the leading suppliers of VLT systems in Europe and Latin America, further extending its reach and diversification across key regulated markets. The deal will also enable Playtech’s land-based division to replicate its success in the U.K. with its Videobet solution, increase market share within the wider global VLT market and create crossselling opportunities in existing as well as new jurisdictions. Aristocrat Lotteries is based in Stockholm and is the exclusive server-based gaming provider for Norwegian lottery Norsk Tipping’s VLTs, and supplies its system to a major operator in Italy, a key jurisdiction for Playtech. The company has also recently completed a successful pilot project in another well-established regulated European country which, if commercialized, is expected to deliver further revenue opportunities.

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Regulator Resources for You and Your Agency

Offering educational webinars for the gaming regulation and enforcement professional.

RIVERS LAUNCHES JOINGO MOBILE APP ittsburgh’s Rivers Casino and Joingo, Inc., a Pnounced mobile technology company, jointly anthe launch of the latest Joingo customer app for iPhone and Android devices. The Rivers Casino app, created using Joingo’s Mobile Loyalty Platform, includes the Places geo-fencing feature and real-time integration with Rivers’ Konami Casino Management System, providing Rush Rewards members instant in-app access to account balances and offers. Using Joingo Places, Rivers can target the delivery of special mobile offers and alerts to their patrons who are located within customizable regions known as geo-fences. In addition, patrons can get directions, make restaurant reservations, and learn about daily specials and promotions, all from their mobile devices. In its next phase, the Rivers Casino app will also have the unique capability to allow patrons to self-comp. Rush Rewards members will be able to redeem their loyalty points for promotional items and other perks directly from their mobile devices.

GMA OPENS BANGKOK OFFICE lobal Market Advisors, a consulting firm to G the casino gaming, hotel and airline industries, has opened a regional Asian office in Bangkok, Thailand. “A significant number of our new and existing clients have retained GMA to guide them in Asia,” said partner Steven Gallaway in a statement. “It’s time for GMA to further expand our presence by making the investment in the Asian region, and we are pleased to do so.” Global Market Advisors LLC and its casino consulting division, Gaming Market Advisors, has clients in South Korea, Thailand, Singapore, Japan, Taiwan, Philippines and eastern Russia as well as the United States. GMA’s new office in Bangkok will act as the firm’s regional headquarters office and will supplement offices in Las Vegas and Denver. Partners Andrew Klebanow and Jonathan Galaviz will oversee the new office.

GTECH CREATES FRENCH SUBSIDIARY asino and lottery supply giant GTECH S.p.A. announced the launch of its new C French subsidiary, GTECH France S.F.M. Based in Paris and spearheaded by its director Marc Attal, GTECH France will directly provide sales, service and maintenance of gaming machines for the French market. 142 Global Gaming Business OCTOBER 2014

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PEOPLE PRESIDENT NOMINATES NIGC CHAIRMAN

CARSTANJEN CEO OF CHURCHILL DOWNS

onodeve Osceola Chaudhuri, a member since 2013 of the National Indian Gaming Commission, and a member of the Muscogee (Creek) Nation, has been nominated by President Jonodeve Chaudhuri Obama to be chairman of the commission. A resident of Tempe, Arizona, he earned a BA from Dartmouth and a law degree from Cornell. He clerked for two appellate court judges before joining the Phoenix law firm of Snell & Wilmer, where he worked on Indian law, business, finance and commercial litigation. Chaudhuri formed his own law firm in 2006, and about the same time began sitting as a judge in Native American courts. He has been an appellate judge of on the Muscogee Nation Supreme Court and San Manuel Mission Band appellate court as well as a judge for Puyallup Tribe.

SCI GAMES NAMES VPs

iversified gaming supplier Scientific Games announced the appointment of Deron Hunsberger as senior vice president, North America sales, for its WMS Gaming slot manufacturing division; and former Bally Marketing VP Dan Savage as the new vice president of corporate marketing. Hunsberger was a sales executive with the former SHFL entertainment when it was acquired last year by Bally Technologies. Scientific Games is in the process of acquiring Bally. Dan Savage In his new role, Hunsberger will lead sales, participation and leasing, sales support and marketing for the WMS Gaming business throughout the United States and Canada. He will lead the WMS team’s sales and marketing strategies. In his new role, Savage will work closely with the company’s gaming, lottery and interactive groups to identify, evaluate and leverage opportunities to increase player appeal and positioning in the marketplace. Additionally, he will provide leadership in the planned integration of Scientific Games and Bally.

144 Global Gaming Business OCTOBER 2014

hurchill Downs has appointed William Carstanjen as its new chief executive officer. Carstanjen has worked in various roles, including president, since joining the company in 2005. He will replace outgoing CEO Robert Evans. Evans will continue as board chairman and will have full-time, daily involvement in the leadership of the company, according to a statement from Churchill Downs. Carstanjen has been with Churchill Downs since 2005, having served various roles in the company including general counsel, chief development officer and chief operating officer before becoming president and COO.

GAMING LAWYER SWITCHES FIRMS

aming attorney Mark Clayton, who represented several high-profile clients in their Nevada regulatory matters in the past year, has left Lionel Sawyer & Collins, one of Nevada’s Mark Clayton oldest law firms, to join the global gaming practice of Greenberg Traurig, an international law firm with three dozen offices worldwide. Clayton was a member of the Gaming Control Board from 2005 to 2009 and also has worked as the in-house general counsel for several gaming corporations.

SEMINOLE TAMPA NAMES GM

eter P. Wu has been named general manager at Seminole Hard Rock Hotel & Casino Tampa. Wu brings more than 20 years experience in corporate property-level management at Fortune 200 & 500, priPeter Wu vately held and startup companies, as well as at gaming, entertainment and hospitality operations. He previously was a senior management member in the development of Baha Mar Casino in Nassau, the Bahamas, scheduled to open in 2015. Wu’s gaming career began at Las Vegas Sands Corporation in Macau SAR, China, where he was senior vice president of business and product development, general manager and vice president of

operations at the Sands and Venetian casinos. He also was senior executive at Black Gaming LLC and Caesars Entertainment Las Vegas.

TOMOVICH JOINS MGM

ilian Tomovich has joined MGM Resorts International as the company’s first chief experience officer (CXO). Reinforcing the resort company’s commitment to delivering extraordinary cusLilian Tomovich tomer experiences across its portfolio of 15 hospitality and entertainment brands, she will be responsible for creating and executing guest interactions across all marketing channels with the goal of continuously improving the guest experience company-wide. With more than 20 years of marketing communications experience in the financial services, telecom and retail industries, Tomovich joined MGM Resorts from MasterCard International, where she held a variety of marketing roles both in Canada and the U.S. In her most recent assignment, she ran consumer marketing in the U.S. Prior to MasterCard, Tomovich held senior marketing positions at LoyaltyOne, the world’s leading provider of loyalty marketing programs to enterprises in the retail, financial services, grocery, travel and hospitality sectors. She was responsible for the brand in Canada, which was named one of the Top 10 Best Managed Brands in Canada by Marketing Magazine during her tenure.

BAHA MAR NAMES INTERNATIONAL MARKETER PARIENTE

aha Mar Casino & Resort in Nassau, the Bahamas, has named Alex W. Pariente as executive vice president, international marketing. The $3.5 billion inteAlex W. Pariente grated resort, which will open in late spring 2015, will offer the Caribbean’s largest casino. In his new position, Pariente will develop the property’s international gaming clientele and build strategic marketing alliances and brand loyalty. Most recently, Pariente served as executive vice president, international and domestic marketing for Wynn Resorts. He was a senior member of the opening teams for the Wynn Resort and Encore Las

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Vegas. He joined Wynn Resorts in 2004. Prior to that, Pariente was senior vice president of international marketing for Caesars Entertainment, developing business plans for the U.S. and international gaming markets in table games and slot play. He was named senior vice president of international marketing at Caesars Palace in Las Vegas in 2001. He also worked for Caesars International in marketing strategy and opening of the Conrad Resort & Casino in Punta del Este, Uruguay.

AFFINITY GAMING NAMES NEW CEO

ffinity Gaming has named a new CEO and added three new members to its board of directors. Affinity, which is based in Las Vegas and owns 11 properties in four states, named Michael Silberling as CEO Michael Silberling late last month. Silberling replaced David Ross, who left the company at the end of July. Silberling will also fill Ross’ role on the company’s board. Silberling spent 20 years at Caesars Entertainment Corp., most recently as president of Caesars’ international operations, overseeing 12 resorts in seven countries. He also oversaw Harrah’s casinos in Iowa and Missouri, two of Affinity’s regional markets.

KONAMI PROMOTES EXECUTIVES

lot manufacturer Konami Gaming, Inc. announced four key leadership promotions as the company continues to strengthen and expand its business operations. Eric Schultz has been promoted to senior director of game software development; Gary Snobel, to senior director of corporate planning and IT administration; Clark Warren, to senior director of systems sales; and James Sargeant, to senior director of manufacturing. In his new role, Schultz will be responsible for the leadership and direction of Konami’s domestic and international games software development strategy. Schultz has been with Konami since 2004, most recently as director of game development. Snobel will oversee company-wide systems and infrastructure solutions, financial analysis and planning, and internal/external auditing. He has been with Konami since 2006 and was promoted to director of corporate planning and IT administration in 2012. Warren will oversee Konami’s casino systems sales initiatives, focusing on new business development and building strategic relationships across Konami’s customer base. He joined Konami in 2011 as

director of systems sales and marketing and holds more than 20 years of gaming experience in both the systems and games divisions. Sargeant will oversee games and systems production operations for domestic and international markets, and is responsible for directing new and refurbishment production, material purchasing/ warehouse, and production quality and safety. He joined Konami in 2011 and has more than 20 years combined engineering and operations management experience across a variety of industry sectors.

ARNOLD RECOGNIZED AS OUTSTANDING BUSINESSWOMAN

imberly Arnold, partner and chief operating officer at the Innovation Group, recently was recognized as one of the Denver Business Journal’s Outstanding Women in Business for 2014. Arnold was the winner in the Large Business Owner category (20 or more employees). The honor is based on criteria including innovation, entrepreneurship, professional accomplishments Kimberly Arnold and community leadership.

FORTRESS NAMES ROSENBERG AS MANAGING DIRECTOR

ew York-based Fortress Investment Group LLC announced that it has hired Adam Rosenberg, former global head of the gaming group at Goldman Sachs, as managing director of the firm’s gaming and leisure inAdam Rosenberg vestment platform. Rosenberg will be responsible for investments made by Fortress’ family of credit-related funds across the capital structure in the gaming and leisure sector. “Adam is an outstanding addition to our credit team,” said Peter L. Briger, Jr., Fortress principal and co-chairman of the board of directors. “His depth of experience, industry relationships and ability to source, structure and execute complex transactions on a global basis will help our business to build on an already significant presence in gaming and leisure.” Rosenberg spent 16 years in the investment banking division at Goldman Sachs, where, as part of the real estate department, he was instrumental in building and eventually running the gaming group on a global basis. Prior to that, he was at Skadden, Arps, Slate, Meagher & Flom.

GGB

October 2014

Index of Advertisers

Acres 4.0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .75 AGA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .135 AGEM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .115 Ainsworth . . . . . . . . . . . . . . . . . . . . . . . . .47, 89 American Gaming Systems . . . . . . . . . . . . . . .55 Aristocrat . . . . . . . . . . . . . . . . . . . . . . . . . . . .19 Aruze . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .67 Bally Technologies . . . . . . . . . . . . . . . . .2, 3, 97 Cadillac Jack . . . . . . . . . . . . . . . . . . . . . . . . . .63 Casino City Press . . . . . . . . . . . . . . . . . . . . .143 Casino Player . . . . . . . . . . . . . . . . . . . . . . . .141 Casino Technology . . . . . . . . . . . . . . . . . . . . .95 Cintas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .83 Cole Kepro . . . . . . . . . . . . . . . . . . . . . . . . . .117 CPI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .118 Cuningham Group . . . . . . . . . . . . . . . . . . . . . .79 Data Spade . . . . . . . . . . . . . . . . . . . . . . . . . .119 Ditronics . . . . . . . . . . . . . . . . . . . . . . . . . . . . .99 Fantini Report . . . . . . . . . . . . . . . . . . . . . . . .142 FutureLogic . . . . . . . . . . . . . . . . . . . . . . . . . . .87 G2E . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .133 GGB . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .126 Gamblit Gaming . . . . . . . . . . . . . . . . . . . . . . .81 Gaming Support . . . . . . . . . . . . . . . . . . . . . .129 Gasser Chair . . . . . . . . . . . . . . . . . . . . . . . . . .65 GLI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15 Global Market Advisors . . . . . . . . . . . . . . . . .91 GCA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29 GCA Everi . . . . . . . . . . . . . . . . . . . . . . . . . . .100 GTECH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23 GTECH Interactive . . . . . . . . . . . . . . . . . . . .107 Hnedak Bobo Group . . . . . . . . . . . . . . . . . . .105 Incredible Technologies . . . . . . . . . . . . . . . . .59 IGT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 Innovation Group . . . . . . . . . . . . . . . . . . . . .127 Interblock . . . . . . . . . . . . . . . . . . . . . . . . . . . .84 JCM Global . . . . . . . . . . . . . . . . . . . . . . . . . . .33 KGM . . . . . . . . . . . . . . . . . . . . . . . . .41, 71, 137 Konami Gaming . . . . . . . . . . . . .13, Back Cover Lifescapes International . . . . . . . . . . . . . . . .121 LT Game . . . . . . . . . . . . . . . . . . . . . . . . . . . .114 MMA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .51 Macquarie . . . . . . . . . . . . . . . .Inside Back Cover Malta iGaming Seminar . . . . . . . . . . . . . . . . .138 MLP Seating . . . . . . . . . . . . . . . . . . . . . . . . . .93 Multimedia Games . . . . . . . . . . . . . . . . . .42, 43 NAGRA . . . . . . . . . . . . . . . . . . . . . . . . . . . . .142 NAV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .125 Novomatic . . . . . . . . . . . . . . . . . . . . . . . . . . .53 Ortiz Gaming . . . . . . . . . . . . . . . . . . . . . . . . .27 Red Square Gaming . . . . . . . . . . . . . . . . . . . . .9 Regulatory Management . . . . . . . . . . . . . . .140 RPM Advertising . . . . . . . . . . . . . . . . . . . . . . .69 Rymax . . . . . . . . . . . . . . . . . . . . . . . .Onsert, 85 Spin Games . . . . . . . . . . . . . . . . . . . . . . . . . .131 Swarovski . . . . . . . . . . . . . . . . . . . . . . . . . . .139 TCS JohnHuxley . . . . . . . . . . . . . . . . . . . . . . .61 Thalden Boyd Emery . . . . . . . . . . . . . . . . . . .111 US Bank . . . . . . . . . . . . . . . . . . . . . . . . . . . .109 US Virgin Islands . . . . . . . . . . . . . . . . . . . . . .113 Vantiv . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .37 WMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .57

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CASINO COMMUNICATIONS

Jamie Odell

he supplier side of the gaming industry has recently changed dramatically—beginning with the purchase of WMS by Scientific Games, then the Bally Technologies buy of SHFL entertainment, continuing through GTECH’s acquisition of IGT and dramatically concluding with Scientific Games gobbling up Bally. Aristocrat has done its part with a recent purchase of VLC and later Paltronics. Jamie Odell, the chief executive of Aristocrat, believes that consolidation is not over, and there will be more synergistic buys and joint ventures in the future. He spoke with GGB Publisher Roger Gros at the Aristocrat offices in Las Vegas in August. To hear a full podcast of this interview, visit ggbmagazine.com.

GGB: You recently brought on a group of impressive people in the slot development area. How has this helped you achieve the goal of increasing recurring revenue from slot operations? Odell: For the last three or four years, we’ve focused on a couple of areas. At the heart of it has been great content, and to achieve that, we needed great providers of content… We recognized at the heart of our business, Aristocrat historically had great content, but it needed to refresh that particularly to be more American-focused. And then at the heart of this, we realized that compared to our U.S.-based competitors, we weren’t as strong as we wanted to be in Class III gaming operations. It’s a great business. The reason for that is understandable; most of our designers were based out of Australia at the time, and of course, gaming ops isn’t a segment which exists to any extent in Australia. So, we started out on that journey, and generically focused more and more of our Australian studios on U.S. gaming ops, and we saw them build great proprietary brands. We started a new studio here three or four years ago. And from there, we grew more and more confidence that we were grow-

146 Global Gaming Business OCTOBER 2014

CEO, Aristocrat Leisure Ltd.

ing our install base. We’ve been really fortunate to attract people like Joe Kaminkow and Dan Marks. Those guys have really raised the bar yet again. Tell us about the unusual success story, the Walking Dead slot machine that you debuted last year. I remember when Ted Has came to us with that proposal, it was kind of, “Where’s that coming from? This is edgy.” But we just had confidence in the studio and the guys, because of the history and the track record with us, and that’s been a great product. And I was watching it being played last night in a Las Vegas casino. It’s kind of weird to see zombies on a slot machine, but it works. And then Joe’s great product with his team, the Secret Sauce Studio—a great group of folks—was Batman on the Wonder Wheels cabinet. It just looks phenomenal. It’s being wellplayed, obviously, which is what really matters. And Aristocrat wouldn’t normally have made that sort of game, really cutting-edge hardware, massive hardware, lights, images, animation. The whole package is just super fun, clearly premium American-based. This is up there with the best of the best. What led to the VLC purchase? These great products led us to think strategically about where we go to from here. Now we’ve got a natural trajectory in Class III gaming ops, so what’s a good business for us? Class II was the answer, so we looked at the VGT business, which is a phenomenal business. Jon Yarbrough’s built up great people, a great brand, great affinity in tribal casinos, in Oklahoma in particular. It’s got a lot of complementary aspects to our own core content, which is very strong and powerful, built on fantastic platforms, which has always been Aristocrat’s core. We’ve never been in Class II, so there was no overlap at all.

Tell us what the Paltronics deal brings to Aristocrat. We have a great casino management system business with Oasis. It’s long-term running the system across the whole casino, so you need to have this close understanding of where the strategies of our customers are going. We’ve been using Paltronics for some time here, and in other parts of the world, and we really felt that this was an area of our business where we needed to step up. We took a look at our capabilities across the Oasis system, and as you look at the needs of customers, we really felt Paltronics, in terms of their network gaming and jackpot capability, was something that we wanted in-house. So we spoke to Angelo Palmisano, who’s joined us. He’s a phenomenal guy. Again, it was a good fit—a much smaller business, obviously, but it still makes sense. What do you think the casino floor will look like in a few years? One of the events of going to a casino is to see this beautiful hardware. It goes for the whole casino experience, right? The beautiful lobbies, the restaurants, the bars. But, the beautiful hardware surrounding the great content isn’t going to change. That’s one of the reasons people go out—to be entertained, to be with other people. The other part of your question, I think, will go to what regulators will allow. How comfortable will they feel about devices being used for slot-type play? The regulators will be the leaders of how we do that. But I think there’s a natural feeling that mobile devices within the casino walls, or the grounds, make sense. What’s interesting if you then go back to the digital market and social, you see that on tablets and iPads, slot content works really well. The quality of the pixilation and the graphics works really well. But I don’t see this sort of radical change where the casino suddenly looks like a row of iPads. That’s not going to happen. Otherwise, you might as well go to a library.

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