Global Gaming Business, October 2017 by Global Gaming Business

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GGB Global Gaming Business Magazine

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October 2017 • Vol. 16 • No. 10 • $10

PLAYER Centric How the new IGT keeps its focus on the end user

Mainland Markets Why Asian gaming is so dependent upon China

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CONTENTS

october

Global Gaming Business Magazine

Global Games Evolution Gaming produces live casino

2017

Page 32 Our annual spotlight on new slot games and major slot manufacturers outlines how those manufacturers are pouring out a flood of innovative content to match the new cabinets and form factors that dominated last yearâ&#x20AC;&#x2122;s Global Gaming Expoâ&#x20AC;&#x201D;content that includes new game styles, high-profile licenses, skill factors, and technology that will define the future of the slot floor. By Frank Legato, Marjorie Preston and Aaron Stanley

33 AGS 38 Ainsworth

Game Technology

42 Aristocrat 48 Aruze Gaming America 50 Casino Technology/Alto Gaming 52 Everi 58 Gamblit Gaming 62 GameCo 64 Incredible Technologies 68 IGT 76 Konami Gaming 82 Merkur Gaming 84 Novomatic Americas

86 Scientific Games

Global Gaming Business OCTOBER 2017

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Vol. 16 • No. 10

october 26 COVER STORY

COLUMNS

Surging IGT

16 AGA Leading the Charge

Led by CEO North America Gaming & Interactive Renato Ascoli, International Game Technology has refocused its R&D might with an eye to what will entertain the player and bring profit to the operator, as the top slot manufacturer marshals the technologies of its legacy companies in a quest to recapture market share—and its former dominance of the slot market.

Geoff Freeman

By Roger Gros and Frank Legato

18 Fantini’s Finance Storm Warnings Frank Fantini

104 Global Gaming Women Learning at All Levels Virginia McDowell

Cover photo: IGT executives (l.-r.) Dallas Orchard, chief product officer, gaming; Rachel Barber, chief technology officer; and Renato Ascoli, CEO North America, gaming & interactive

Robert Rebholz

FEATURES

22 The Chinese Gambler Chinese citizens are the most soughtafter among Asian gambling customers, but the laws of the People’s Republic of China make marketing to them tricky.

Our monthly section highlighting and analyzing the emerging internet gaming markets.

124 iGames News Roundup

By Aaron Stanley

94 The New Stars With the reinvention of PokerStars as the Stars Group, the world’s largest online poker company seeks to broaden its identity. By Steve Ruddock

106 Analytics Data-Driven Decision-Making

108

King Cash The technology of the ATM and payment kiosks performs perhaps the most important function in a casino—getting cash into player hands. By Dave Bontempo

118 Table Games Behind the Scenes Roger Snow

120 Marketing The Pillars of a VIP Experience Blaine Graboyes

122 Operations The Millennial Problem Revisited Jeff Hwang

DEPARTMENTS 8

The Agenda

10 By the Numbers 12 5 Questions 20 AGEM

112

98 Exceeding Guest Expectations Success on the hospitality side of gaming means creating experiences for customers that they will remember—and share with others. By Bob Boughner and Steve Gallaway 6

Global Gaming Business OCTOBER 2017

Arizona Futures As Arizona’s gaming tribes put the dispute over the Tohono O’odham tribe’s Phoenix expansion behind them, the state looks to “modernize” and renew gaming compacts. By Dave Palermo

92 Frankly Speaking 119 Cutting Edge 126 Goods & Services 129 People 134 Casino Communications With Bill Boasberg, General Manager, MGM National Harbor

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THE AGENDA

Incrementally Yours Roger Gros, Publisher

t’s a word we hear thrown about these days in the context of additional monies coming into your property. “Incremental revenue” has become the new buzzword about increasing your earnings by adding more amenities or different attractions that produce more earnings. Those of you who remember Glenn Schaeffer will recall that he was one of the trailblazers for “incremental” revenue, or what we also call nongaming revenue. When I was working for my previous employer, we were producing a show in Detroit called the Northern Gaming Summit in the mid ’90s when gaming was coming to that part of the world. I asked Schaeffer to deliver a keynote speech and he agreed. Schaeffer is truly a gaming visionary. As the CFO and COO for Mandalay Bay (nee Circus Circus), Schaeffer, along with the amazing team put together by founder Bill Bennett, created some special environments. Soon after he arrived from a harrowing trip from Vegas, Schaeffer gave a scintillating speech at the summit, focusing largely on non-gaming revenue. He said he considered every slot machine, table game, restaurant, hotel room and gift shop a cash register. They should all produce revenue for the property, and he explained how that could be accomplished. He presciently predicted that increased competition from all sources—not just other casinos—would force gaming operators to be more imaginative and creative when it came to the experience of their guests. Remember, this was 20 years ago when the main theory about gaming was “build it and they will come.” Now that Schaeffer’s prediction has been brought to life, there are many casinos and gaming companies that have responded accordingly. The company that bought Schaeffer’s company, MGM Resorts (which also had swallowed Mirage Resorts a couple of years earlier), has gone all in. Its Mlife system rewards customers for any spend within the corporation, whether inside the casino or out. Innovative programs like the “Wellness Rooms” at MGM Grand, its partnership in the TMobile Arena in Las Vegas and its expansive nongaming amenities at MGM National Harbor in Maryland have proven to be successful. Las Vegas Sands’ robust meetings and convention business in Las Vegas, Asia and Bethlehem,

Global Gaming Business OCTOBER 2017

Pennsylvania, brings customers in for many different reasons. But for smaller companies, tribes and standalone casinos, the decision can be more difficult and more costly. Sometimes it’s difficult to assess return on investment for something you’ve never done before. Something as simple as a hotel can become an albatross for a casino that may not have the expertise or experience to run it. But decisions really need to be made now, before the competition swoops in with a bright and shiny new casino, connected to a full-service hotel, complete with retail, meeting space and entertainment. In this issue of GGB, we conclude a series of three articles by Bob Boughner and Steve Gallaway from Global Market Advisors that examine non-gaming amenities and how they can contribute to any casino’s bottom line. Boughner, like Schaeffer, is one of the visionaries who have actually created assets that perform. In his long career with Boyd Gaming, he assisted in the development of many of the properties in Middle America and was largely responsible for development of the Borgata, the most successful casino in Atlantic City. By combining a robust group of non-gaming assets with some of the best gambling in the city, Borgata far outpaces every other casino in Atlantic City. (For example, in August, Borgata posted over $70 million in GGR, with Harrah’s Resort in second with just $32 million.) So incremental revenue can be very important. You have to do a deep dive to separate non-gaming revenue from gaming revenue when you get to gross operating profits (I don’t pretend to understand it), but that’s what CFOs are for. And CFOs are generally the ones that can determine the ROI of any non-gaming investment. Ironically, the most lucrative ROI of nongaming amenities usually comes with a parking garage, according to HBG Design. The worst? A golf course, by far. But that means the ROI of additional hotel rooms, meeting and convention space, more restaurants, a spa, bars and lounges and other attractions should be weighed very carefully. Because when a casino is only a casino, people will find another outlet for their non-gaming fix.

Vol. 16 • No. 10 • OCTOBER 2017 Roger Gros, Publisher | rgros@ggbmagazine.com twitter: @GlobalGamingBiz Frank Legato, Editor | flegato@ggbmagazine.com twitter: @FranklySpeakn Monica Cooley, Art Director | cooley7@sunflower.com John Buyachek, Director, Sales & Marketing jbchek@ggbmagazine.com Floyd Sembler, Business Development Manager fsembler@ggbmagazine.com Becky Kingman-Gros, Chief Operating Officer bkingros@ggbmagazine.com Lisa Johnson, Communications Advisor lisa@lisajohnsoncommunications.com twitter: @LisaJohnsonPR Columnists Frank Fantini twitter: @FantiniResearch Geoff Freeman twitter: @GeoffFreemanAGA Blaine Graboyes twitter: @GameCoInc Jeff Hwang twitter: @RivalSchoolX | Virginia McDowell Robert Rebholz | Roger Snow Contributing Editors Dave Bontempo | Bob Boughner Steve Gallaway | Dave Palermo twitter: @DavePalermo4 Marjorie Preston | Steve Ruddock twitter: @SteveRuddock Aaron Stanley twitter: @AaronWStanley

EDITORIAL ADVISORY BOARD Rino Armeni, President, Armeni Enterprises

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

• Julie Brinkerhoff-Jacobs, President, Lifescapes International

• Nicholas Casiello Jr., Shareholder, Fox Rothschild

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

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

• Dean Macomber, President, Macomber International, Inc.

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

• Jim Rafferty, President, Rafferty & Associates

• Thomas Reilly, Vice President Systems Sales, Scientific Games

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

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

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

• Roy Student, President, Applied Management Strategies

• David D. Waddell, Partner Regulatory Management Counselors PC Casino Connection International LLC. 901 American Pacific Drive, Suite 180 • Henderson, Nevada 89014 702-248-1565 • 702-248-1567 (fax) www.ggbmagazine.com The views and opinions expressed by the writers and columnists of GLOBAL GAMING BUSINESS are not necessarily the views of the publisher or editor. Copyright 2017 Global Gaming Business LLC. Henderson, Nevada 89014 GLOBAL GAMING BUSINESS is published monthly by Casino Connection International, LLC. Printed in Nevada, USA. Postmaster: Send Change of Address forms to: 901 American Pacific Dr, Suite 180, Henderson, NV 89014 Official Publication

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BY THE

NUMBERS

NoN-GaMiNG SPeNd iN MaCau

he emphasis on mass market in Macau means that the government has been encouraging operators to develop non-gaming attractions that will increase non-gaming spend. In the most recent report by the Government of Macao Special Administrative Region Statistics and Census Service, non-gaming spend was broken down by visitors from China and other parts of Asia. The biggest takeaway is that overnight visitors spend far more than day-trippers, consistent with the government’s desire to add more hotel rooms to the destination. And just like the massive lead in non-gaming volume, per-capita spend by visitors from mainland China also leads all other regions of the world.

Per-capita Spending of Visitors from Mainland China

Tribal Trends

he latest revenue report from the National Indian Gaming Commission outlines a very healthy tribal gaming industry in the U.S. For the first time in history, tribal gross gaming revenues exceeded $30 billion in fiscal year 2016, an increase of 4.4 percent over 2015. In the NIGC “regions” where gaming operates, tribes all showed healthy growth over 2016. According to NIGC Chairman Jonodev O. Chaudhuri, “The stable growth is reflective of a healthy and wellregulated industry with a tremendous impact on local and state economies. When Congress passed IGRA almost 30 years ago, it expressly cited in its findings and purposes the longstanding federal policy goal to promote tribal economic development, tribal self-sufficiency and strong tribal governments; no other economic driver has been able to do that for Indian Country as successfully as gaming.”

Global Gaming Business OCTOBER 2017

Per-capita Spending of Visitors

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NUTSHELL

“They

Questions David Schwartz

Director, Center for Gaming Research, University of Nevada, Las Vegas Center for Gaming Research at the University of Nevada, Las Vegas is one of the most comprehentalsosivehea renowned research organizations covering the gaming industry. David Schwartz operates the center, but is author. His Roll the Bones is the definitive history of gambling from the caveman to present day. Other books include Suburban Xanadu: The Casino Resort on the Las Vegas Strip and Beyond, Cutting the Wire: Gaming Prohibition and the Internet, and Grandissimo: The First Emperor of Las Vegas. He spoke with GGB Publisher Roger Gros in his offices at UNLV in September. To hear a full podcast of this interview, visit GGBMagazine.com.

1 2 3 4 5

GGB: Let’s start with Las Vegas. The town took a hit during the recession but now it’s come back. Who’s coming to Vegas now? Schwartz: It’s a different customer than was coming in 2006. They gamble a lot less and some don’t even

gamble at all. The city has been smart, and adjusted to that new reality. Instead of trying to force people to gamble, they’re now valuing the customers by their non-gaming spend. Jeff Hwang did a piece in GGB saying that the value on the Las Vegas Strip has gone down because they’ve replaced the small bargain joints with massive 5-star developments. Is that a danger?

It can be. I think what’s dangerous is a trend we’ve seen in the last year where room rates have gone up a lot and we didn’t see other ancillary spend rise, and some of it actually fell. So if you’re cannibalizing your F&B spend with higher room rates, you’re not giving players enough value. I wouldn’t say that if you lower your room rates other spend will go up, because we saw during the recession that didn’t happen, but you can’t go 180 degrees the other way, either. It’s not sustainable. Has Downtown become the place where value has gone in Las Vegas? They’ve been producing some really good numbers the past 18 months or so.

I think it is. They’ve been employing a really successful strategy. They’ve known for 30 years they can’t have the white tigers, exploding volcanoes and all that. They’re going to compete on value and gaming conditions. If you want to come to Vegas and see a show and be wowed, you go to the Strip. If you want to come to Las Vegas and have a couple of beers and play blackjack or craps, you go Downtown. They’ve done a very good job at that. These sharp operators have shown you can be successful even in the shadow of these huge multibillion-dollar integrated resorts. You’ve been doing a lot of research into eSports. Tell us what kind of opportunities that offers for the casino industry.

There are lots of opportunities. It’s not going to be a replacement for gaming, so it won’t be a question of someone making a decision to play slot machines or play in the Madden tournament. It’s more of an event type of thing where you’ll attract thousands of people to attend and watch eSports events. As for betting, I don’t think it’s going to be big at all. Even if you could bet on it at a sports book, it will be a minor item. Given that sports books only produce 1 percent or 2 percent of total gaming revenue, eSports will be a small portion of that. And we don’t even know if most sports books will take those bets. Do you think sports betting has a chance to be legalized across the U.S.?

I think it’s so popular, it’s going to be hard to keep it contained. Once you have the major leagues dropping their opposition—even if they’re not technically in favor of it, but just stop opposing it so broadly— I think it will be much easier to pass it. They’re really the only people who care. You have the typical anti-gaming people, but they don’t carry the clout of the major sports leagues.

Global Gaming Business OCTOBER 2017

Said It”

“That’s the business I’m in. The non-casino is the cause of the casino.” —Steve Wynn to the Nikkei Asian Review on why a casino in his properties only drives non-gaming revenue

CALENDAR October 2-5: Global Gaming Expo, Sands Expo Center, Las Vegas. Produced by American Gaming Association and Reed Exhibitions. For more information, visit GlobalGamingExpo.com. October 16-18: International Association of Gaming Regulators (IAGR) 2017 Conference, Emperors Palace, Johannesburg, South Africa. Produced by IAGR. For more information, visit IAGR.org. October 24-25: Gaming Africa, Birchwood Hotel & OR Tambo Conference Centre, Boksburg, South Africa. Produced by Clarion Gaming. For more information, visit gamingafrica.za.com. October 25-26: Gaming Market Colombia, Bogota, Colombia. Produced by La Federación Colombiana de Empresarios de Juegos de Suerte y Azar Fecoljuegos. For more information, visit GamingMarket.com.co. October 30-November 1: Totally Gaming Summit, Hilton Park Hotel, Tallin, Estonia. Produced by Clarion Gaming. For more information, visit TotallyGamingSummit.com. November 2-3: Big Africa Super Show, Emperors Palace, Johannesburg, South Africa. Produced by Eventus International Limited. For more information, visit bigafricasummit.com. November 7-9: SAGSE LATAM 2017, Costa Salguero Convention Center, Buenos Aires, Argentina. Produce by Monografie. For more information, visit monografie.com/sagselatam.

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AMERICAN GAMING ASSOCIATION

Leading the Charge AGA files amicus brief in support of New Jersey’s sports betting challenge By Geoff Freeman, President & CEO, American Gaming Association

that the time is right for a legal, regulated sports betting market that offers a safe, consumerfriendly marketplace for sports fans to wager on the games and teams they follow. Most recently, we helped launch the American Sports Betting Coalition—bringing together state and local elected officials, regulators, law enforcement leaders, think tanks and third parties, academics and experts, gaming industry leaders, allies and fans. This coalition includes the likes of law enforcement groups such as the Fraternal Order of

n the coming weeks, the United States Supreme Court will hear arguments on whether the Professional and Amateur Sports Protection Act (PASPA) is constitutional. As I have said repeatedly over the last year, America’s 25-year-old failing federal ban on sports betting is not working. PASPA is doing nothing to stop millions of Americans from wagering on sports each and every day.

message. Currently, 14 states have already introduced sports betting bills or resolutions in anticipation of legal sports betting that could be coming soon. In addition, 19 other states have joined West Virginia in filing a separate amicus brief to the court. This group of bipartisan states includes representation from every corner of the country, from states with and without gaming, and includes signees from state AG’s offices as well as governor’s offices. It also includes the president of the National Association of Attorneys General

want to empower states and tribal sovereign “We governments by giving them the opportunity to decide whether to legalize and regulate sports betting, just as they have done for years with casinos, lotteries and other forms of gaming.

”

Americans continue to bet on sports, but, thanks to PASPA, most of that betting occurs illegally. The AGA conservatively estimates that Americans illegally bet over $150 billion per year on U.S. sporting events. Earlier this year, Americans bet an estimated $15 billion on the Super Bowl and NCAA Men’s Basketball Tournament alone, and 97 percent of those bets were made illegally. That’s why the American Gaming Association in September filed an amicus brief with the United States Supreme Court in support of the state of New Jersey’s challenge to an outdated, failed law. AGA, its member companies and its allies have been working tirelessly to make the case

Global Gaming Business OCTOBER 2017

Police, National District Attorneys Association and Major County Sheriffs of America, and notable leaders in their field like former FBI Deputy Director Tim Murphy and former Boston Police Commissioner Ed Davis. It has the support of international entities like the International Centre for Sport Security and European Casino Association and think tanks like Competitive Enterprise Institute and other third parties. The coalition reflects the growing public support for sports betting. A strong majority of American voters want to end the federal sports betting ban—and that’s true regardless of political party, income, education, race or region of the country. Doing so could generate vital tax revenues for states and create jobs. Research from Oxford Economics estimates legal, regulated sports betting could support up to 152,000 American jobs and generate $5 billion in tax revenues. State legislatures are beginning to hear the

(NAAG), both co-chairs of the NAAG Gaming Committee, and chair of the Conference of Western Attorneys General. We want to empower states and tribal sovereign governments by giving them the opportunity to decide whether to legalize and regulate sports betting, just as they have done for years with casinos, lotteries and other forms of gaming. With 21st century tools now at our disposal, we have the ability to monitor sports betting in real time, assuring the integrity of major sports leagues remains unaffected. Combining this technology with a regulated market will empower law enforcement, will give regulators transparent oversight, and will protect consumers. We look forward to the Supreme Court hearing this case and trust that, based on the legal merits and PASPA’s unmitigated failure, we will have legal sports betting in the United States very soon.

Follow Geoff Freeman on Twitter at @GeoffFreemanAGA.

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FANTINI’S FINANCE

Storm Warnings What do tropical storms, dividends and an up-and-coming company have in common? By Frank Fantini

MGM Resorts and Boyd Gaming are the two ometimes, things happen that you canlatest companies to join the club. Both, until renot predict. cently, had balance sheets that concerned investors. In investing, they are called exogeNow, both are headed towards debt-to-EBITDA ranous events. They disrupt the business model but, tios considered comfortable. because they come from outside an organization The result: MGM initiated a dividend that anand cannot be predicted, they are not factored into nualizes to a 1.3 percent yield and is buying in the model or financial forecasts. shares. Boyd initiated a dividend that yields 0.75 This year’s hurricanes were exogenous events. percent, and is buying shares. There is no way to predict in any year that a Another relatively new source are gaming realhurricane will hit any property, so financial foreestate investment trusts—Gaming and Leisure casts do not include them. Yet, we know that every Properties, spun off from Penn National, and more year hurricanes will happen, and the probability is recently MGM Growth Properties, spun off from that a storm will disrupt business somewhere in MGM. any year, and eventually everywhere in the nation’s Because REITs are required to pay out most hurricane zones. profit to shareholders, the dividends, naturally, are Historically, storms have had varying effects on larger. MGP is yielding about 5.5 percent and casinos. Hurricanes Rita and Katrina shut some GLPI 6.45 percent. That’s a pretty good return in properties permanently. Superstorm Sandy today’s low-interest environment, especially as a slammed Atlantic City business for a time. way to continue to invest in the long-term growth However, the storms were not entirely bleak of gaming. news for casinos. Those that remained opened after Among conventional casino companies, the Katrina, for example, boomed with their near-mobiggest dividend payer is Las Vegas Sands at 4.6 pernopoly status and flood of spendable money in the cent yield. And with no major growth projects in pockets of thousands of recovery workers. the near future and CEO Sheldon Adelson faPerhaps the bigger lesson is that it did not take mously crowing “Yay, dividends!” on quarterly inlong, in terms of a long-term outlook, for business vestor conference calls, those to return to normal. returns to shareholders are So, for long-term The storms were not likely to grow. investors, it really is the entirely bleak news for Some suppliers pay divilong term that matters. casinos. Those that dends, too. IGT at 3.9 percent remained opened after yield, and Aristocrat at 1.4 TOTAL RETURN Katrina, for example, percent, as examples. If you want evidence All of that brings gaming boomed with their nearthat the casino industry into the world of total reis maturing, one big monopoly status and flood turn—stock price growth piece of evidence is in of spendable money in the combined with dividends. dividends. pockets of thousands of Total returns tend not to Not long ago, divirecovery workers. be as exciting as pure growth, dend payers were rare. as in the casino industry’s Not today. early days. But as Jeremy Siegel documented in his As growth has slowed, thanks to casinos filling classic book Stocks For The Long Run, they treat in, even saturating existing jurisdictions, and as long-term investors the best. balance sheets improve, in part because there are fewer growth projects to finance, companies find BOYD, A STEADY GROWER themselves with surplus money. We’ve mentioned Boyd Gaming several times in Some of that money is going to share repurthis space as a company that appears to have a chases. And, increasingly, to dividends. Or to both.

‘

’

Global Gaming Business OCTOBER 2017

steady growth plan. The company recently demonstrated in its second quarter that, while earnings missed analyst consensus, overall performance and corporate activities showed underlying strength. Among the positives: • Operating margins in the Las Vegas locals markets improved 3.3 percent in the quarter. Part of the rationale for buying Cannery, East Side Cannery and Aliante casinos is that they operated at low margins, which Boyd can improve. • Returning capital to shareholders. BYD initiated a 5-cent quarterly dividend, bought back 600,000 shares in the quarter and intends to complete the remaining $77 million in buyback authorization in 12 to 18 months. • Lower debt. Boyd had paid down $92 million in debt this year and expects to get its debt-toEBITDA ratio into the four-to-five-times range next year. • Property improvements. While Boyd is paying down debt, it is also investing in upgrading properties, a necessary move for growth. • Las Vegas Valley. Gaming revenue growth in the Las Vegas Valley appears to be accelerating. Unlike most states, Nevada reports revenues by area, not by property, but July numbers suggest a strong month for Boyd. With last year’s acquisitions, the Las Vegas Valley now generates about 45 percent of the company’s gaming revenue. The locals markets and Downtown Las Vegas grew revenues $25.122 million in July, a combined 12.07 percent. Assuming Boyd has 30-40 percent of those markets, and assuming it shared proportional growth, the inference is that BYD grew revenues by a healthy amount. A combination of higher revenues and higher margins obviously means an even better bottom-line improvement. Boyd stock is near its 52-week high and at 17 times next year’s earnings; it isn’t overly cheap. But it also isn’t expensive. And Boyd appears to be early in a story that will develop over several years. 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.fantiniresearch.com.

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p. 20 AGEM:Layout 1 9/14/17 6:26 PM Page 20

AGEMupdate AGEM MEMBER PROFILE Kronos Incorporated acquired Digital Instinct, a leading provider of human capital and workforce management solutions for casinos and casino resorts. Acquiring Digital Instinct and its industry-leading product line, Virtual Roster, deepens Kronos’ expertise and presence within the global casino resort industry. Founded in 2000 and headquartered in Brisbane, Australia, Digital Instinct also operates in Las Vegas, Macau and Singapore. Digital Instinct’s flagship product line Virtual Roster is an integrated suite of solutions including staff scheduling, time and attendance and workforce analytics. Virtual Roster is known worldwide for addressing unique casino workforce issues with advanced solutions that make scheduling, communication and operations more efficient while improving employee engagement. This acquisition strengthens Kronos’ leadership in the casino resort industry by further enhancing the company’s global footprint in the market with a more robust end-to-end human capital and workforce management solution. Digital Instinct’s scheduling solution offers unique functionality to schedule employees in a casino environment more accurately, while keeping staff engaged and satisfied. The Virtual Roster product is used by more than 140 casino and casino resort locations worldwide. Currently, 10 out of the top 12 global casino resorts are Digital Instinct customers. Kronos will continue to support the acquired customers through a dedicated team of Digital Instinct employees, and Digital Instinct customers will have access to a comprehensive and complementary array of Kronos solutions. Kronos is a leading provider of workforce management and human capital management cloud solutions. Kronos industry-centric workforce applications are purpose-built for businesses, healthcare providers, educational institutions, and government agencies of all sizes. Tens of thousands of organizations—including half of the Fortune 1000—and more than 40 million people in over 100 countries use Kronos every day. Visit kronos.com. Visit Kronos and Virtual Roster at G2E in Booth 2413.

Global Gaming Business OCTOBER 2017

SEPTEMBER 2017 KEY BOARD OF DIRECTORS ACTIONS • Following a review of eligible outside groups who could undertake the proposed AGEM Gaming Census project, AGEM’s working group and board members have selected Eilers & Krejick Gaming. This group has good knowledge of the market and a proven track record, having already conducted leading surveys. A motion for funding was approved by the members and the project will now commence. • Mexico’s AIEJA, APJSAC and SEGOB associations recently announced they will be hosting the 1st National Convention on the Gaming Industry, to be held Mexico City October 17-18. AGEM has been asked to participate and will be working with SEGOB to provide the supplier’s perspective to proposed attendees—made up of operators, government officials, regulators and the media. • The AGEM September board meeting included a special item, which saw members agree to provide a Disaster Relief Fund up to $25,000 in support of the unprecedented recent natural disasters taking place in the U.S. and Caribbean Islands. The voting officers will determine the most suitable charity or organization to receive funds. • AGEM members recently approved an annual membership contribution of $10,000 to continue supporting the Nevada Council on Problem Gambling. This nonprofit organization’s mission is to generate awareness, promote education and advocate for quality treatment and support resources for problem gambling in Nevada. • In support of AGEM’s educational initiatives, members approved to contribute $10,000 to the Global Gaming Women Education Fund. The funding will provide a number of educational scholarships for industry women looking to advance their careers or emerging leaders pursuing a career in gaming. • AGEM will once again be supporting NIGA with a series of events at the 2018 show, to be held in Las Vegas April 19-20. A motion for funding was approved by members, which will be allocated to events on both days. This is a one-off location for NIGA before it relocates to its new home of San Diego from 2019 onward.

UPCOMING EVENTS

• AGEM will be present at the forthcoming G2E Las Vegas October 3-5. A major highlight in the show program will be the presentation ceremony of the AGEM Memorial Awards honoring Jens Halle and Peter Mead on Wednesday, October 4 at 4 p.m. on the AGEM Booth 3700 (just inside the main hall entrance). • Global Gaming Women’s “Kick Up Your Heels” G2E Reception is being held on October 4, at the Cos mopolitan. AGEM is a Silver Sponsor of this fast-growing, prestigious event, with members recently approving to increase the contribution to $15,000.

AGEMindex

The AGEM Index experienced a slight increase on mixed stock performance in August 2017. The composite index stood at 431.66 points at the close of the month, which represents an increase of 7.74 points, or 1.82 percent, when compared to July 2017. The AGEM Index reported a year-over-year increase for the 23rd consecutive month and has climbed 145.26 points, or 50.7 percent, since August 2016. During the latest period, eight of the 13 global gaming equipment manufacturers reported month-to-month increases in stock price, with three up by more than 10 percent. Five manufacturers reported decreases in stock price during the month, with all posting single-digit declines.

Exchange: Symbol (Currency)

Stock Price At Month End Percent Change Aug-17 Jul-17 Aug-16 Prior Period Prior Year

Index Contribution

Nasdaq: AGYS (US$)

10.29

10.06

11.05

2.29

0.07

Ainsworth Game Technology

ASX: AGI (AU$)

2.66

2.41

2.21

10.37

20.36

0.85

Aristocrat Leisure Limited

ASX: ALL (AU$)

21.17

20.23

15.10

4.65

40.20

4.87

Taiwan: 3064 (NT$)

15.05

16.20

34.75

(7.10)

(56.69)

(0.03)

Agilysys

Astro Corp. Crane Co. Everi Holdings Inc. Galaxy Gaming Inc. Gaming Partners International International Game Technology PLC >

' E (B (

Konami Corp. Scientific Games Corporation Transact Technologies

(6.88)

NYSE: CR (US$)

74.23

75.50

64.32

(1.68)

15.41

(1.01)

NYSE: EVRI (US$)

7.71

7.46

2.11

3.35

265.40

0.23

OTCMKTS: GLXZ (US$)

0.82

0.74

0.46

10.81

78.26

0.05

Nasdaq: GPIC (US$)

10.55

10.62

9.95

(0.66)

6.03

(0.01)

NYSE: IGT (US$)

20.37

19.04

22.83

6.99

(10.78)

3.90

1.18

0.88

4.24

39.77

0.19

B '

' E

* (, %

TYO: 9766 ( )

5,730

5,750

3,655

(0.35)

56.77

0.65

Nasdaq: SGMS (US$)

35.20

37.05

8.25

(4.99)

326.67

(2.13)

Nasdaq: TACT (US$)

9.75

8.85

7.54

29.31

0.10

10.17

Change in Index Value

7.74

AGEM Index Value: July 2017

423.92

AGEM Index Value: August 2017

431.66

AGEM is an international trade association representing manufacturers of electronic gaming devices, systems, lotteries and components for the gaming industry. The association works to further the interests of gaming equipment manufacturers throughout the world. Through political action, trade show partnerships, information dissemination and good corporate citizenship, the members of AGEM work together to create benefits for every company within the organization. Together, AGEM and its member organizations have assisted regulatory commissions and participated in the legislative process to solve problems and create a positive business environment.

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p. 22 china:Layout 1 9/14/17 5:40 PM Page 22

ALL EYES ON

China The most sought-after gambler in Asia is Chinese. But how do you get your message out in a country where gambling—and marketing gambling—is illegal? By Aaron Stanley

t doesn’t take much market analysis to determine that the Chinese high roller is the most sought-after customer in East Asia, and the rest of the casino gaming universe more broadly. These players have made it rain over the last decade in Macau, Las Vegas, Singapore and the other jurisdictions that have aggressively marketed to them, dropping not only eye-popping baccarat volumes but also racking up spend on high-end shopping and other non-gaming amenities at properties in these jurisdictions. “The Chinese market is by far the single largest market for any casino in the world,” says Ben Lee, managing partner of Macau-based iGamix Management & Consulting. “The only criteria for success are travel time and connectivity.”

Major Market As China has emerged as a massive, yet largely untapped customer base over the past 15 years, casinos and integrated resorts have sprouted up across East Asia in places such as Australia, Cambodia, South Korea—even as far flung as Saipan—with the goal of luring Chinese clients of all market segments. “China is such a significant player from a feeder market perspective that a lot of the jurisdictions in the surrounding regions to a large extent rely a lot on China, especially in the VIP and premium play segments,” says Michael Zhu, vice president of operations planning and analytics at The Innovation Group. Further, an entire sub-industry of junket operators has emerged for the purpose of recruiting VIP players, extending them credit and then getting them inside the doors of the region’s casinos. But given the disproportionate weight that China carries as the engine driving the casino economy in East Asia, it’s true that when the China outChinese President Xi Jingping instituted the corruption crackdown that hurt Macau gaming revenues, and he is beginning a second five-year term

Global Gaming Business OCTOBER 2017

bound tourism market sneezes, to borrow from the old axiom, its benefactors catch a cold. Any action or trend, no matter how seemingly trivial, can have ripple effects throughout the region that are difficult, if not impossible, to quantify. As such, reading the tea leaves of China’s secretive political climate, regulatory environment and, most importantly, the ebbs and flows of its VIP player base and then reacting accordingly is an existential balancing act that has no simple approach: too much distance, and the competition will scoop up those lucrative players; too close, and you might find your employees being arrested. The biggest sneeze occurred in 2014 when the Chinese Communist Party launched one of the stingiest anti-corruption crackdowns in its history, curbing the flow of high-end players traveling to Macau—a sub-autonomous Chinese territory located just west of Hong Kong and the only place in the nation where gambling is legal—and sending the city’s gaming revenue plummeting from the tune of $45 billion in 2013 to just $29 billion in 2015. While the crackdown prompted many Chinese players to simply stay home, others seeking to try their luck elsewhere found no shortage of new destinations more than happy to take them in. Fast-forward to 2017, where Macau has enjoyed more than a year’s worth of monthly growth in gross gaming revenues on the heels of new VIP-oriented properties opening in the territory. While the worst seems to be over, the incident paints a vivid picture of the inherent risks, rewards and uncertainties that casino operators face when banking on the Chinese gambler. “If I was a country banking on Chinese to come and gamble I wouldn’t feel comfortable right now,” says Grant Govertsen, a Macau-based analyst with Union Gaming.

Understanding the Crackdown Gauging the chances of another gambling slowdown fueled by Chinese government policy requires grasping the nature and motivations behind the current anti-corruption crackdown, as well as the opaque manner in which such policies are formulated and rolled out. Admittedly, this is far from an easy task. “We try to keep our ear to the ground as best we can, but regulatory risk has always been inherent in gaming in Macau,” says David Katz, an equities analyst with the Telsey Group. “It goes through periods of time where

p. 22 china:Layout 1 9/14/17 5:40 PM Page 23

Gaming may not be even close to the majority of their spend, but if you take into consideration the huge base and the scale, that spend or that volume is still a pretty significant amount.

“

”

— Michael Zhu, Vce President of Operations Planning and Analytics, The Innovation Group

that risk adjustment is less and in some cases it’s more, but it certainly far exceeds anything else in my coverage universe in gaming or hospitality.” For foreigners, the secretive nature of the Chinese Communist Party and its governing style—a stark divergence from what’s typical in liberal, Western democracies—can be difficult, if not impossible, to grasp. On October 18, the Party’s Congress, which convenes every five years, will deliver a second term to President Xi Jingping—the man behind the crackdown that sent the Asian gaming business into a tailspin—and allow him a consolidation of power. While the anti-corruption campaign has not necessarily let up, it has taken on a different form, shifting more towards the banking and finance sectors, explains Richard McGregor, a former bureau chief for the Financial Times in China and author of The Party: The Secret World of China’s Communist Rulers. “The campaign has been the most intensive internal party anti-corruption campaign since 1949, so it’s a big deal,” he says. “Most people would have thought it would have finished by now, but there are still big people being knocked off.” In addition to targeting corrupt officials who were using Macau as a base to launder money, the introduction of capital controls and a crackdown on money leaving the country to counteract an overheating currency have also curbed the flow of clean money to Macau and elsewhere. McGregor, who has recently released a new book on the geopolitical interplay among China, Japan and the United States, also suggests that the secretive yet sometimes whimsical nature of Chinese policy-making played a role in targeting the once-sizzling gaming economy. “There were probably some elements of the Chinese government that thought Macau was growing too quickly. Maybe people like Adelson and the like were getting rich too quickly,” he says.

Where Did the VIPs Go? But thwarting Chinese VIPs from visiting overseas casinos to gamble quickly became a game of cat-and-mouse. “The VIP players started migrating to other jurisdictions like Vegas,” says Lee, noting that southern Nevada benefitted handsomely in the form of boosts in baccarat volumes during the initial 12-18 months following the onset of the campaign. But the joy was short lived. “What happened then was that Chinese undercover agents started following people to Vegas,” Lee says. Perturbed players once again began to look elsewhere. It wasn’t uncommon to hear of Chinese players traveling to obscure places like Lake Tahoe to avoid being tracked. Soon enough, they began venturing to Australia and Singapore, with undercover agents again in tow. But in August 2016, the opening of several new VIP-oriented properties—including Wynn Palace, the Parisian and new VIP rooms at Studio

City—gave players a motive to try Macau once more. As they did, they discovered no signs of significant interference by Chinese authorities, though certain nanny-state technologies like facial recognition at Macau ATM machines have been rolled out to keep tabs on players.

Equal and Opposite Reaction While that’s good news for companies with operations in Macau, not everyone is happy about the return of the Chinese high-roller diaspora to Macau. Jurisdictions like Australia, New Zealand and Singapore have seen significant hits to their VIP play. Crown Resorts, the Australian casino operator led by James Packer, saw VIP gambling volumes decline year-over-year by nearly half, and total profits plummet by 15.5 percent in the 12 months leading up to June 30. Sky City, the New Zealand-based operator, saw VIP volumes decline by 30 percent during the same period. The true body blow came last fall with the arrest of 19 Crown employees for illegally marketing gambling on the Chinese mainland, sending shockwaves through the industry and effectively neutering the company’s ability to draw VIP players from China. While the Chinese government issued a strong warning in March 2016 telling foreign operators not to market inside its territory, it’s generally understood that all of the major concessionaires in Macau continue to engage in marketing on the Chinese mainland. Thus, there is only speculation as to why Crown—which holds just a partial stake in one Macau license—was singled out for engaging in the activity while others were left alone. “China is a black box... Why is it that only Crown was targeted? Was it something company-specific? Can that somehow be tied to Crown’s departure from Macau? We’ll never know,” says Govertsen. Theories of what that motive might be span a wide spectrum. Some suggest they were sending a message to the Australian government; others say they were trying to punish Crown for cooperating with an investigation of a Chinese high-roller in another jurisdiction; others reckoned the Chinese were simply trying to reroute gambling activity back into their purview. “When they were clamping down on the Crown marketing people and other countries, it was really intended to force that business back into Macau where they could keep an eye on it, where it could be properly regulated,” says Katz. “It keeps the VIP business in their backyard rather than running around in the wild.” Others reckoned that the level of ostentation and audacity in Crown’s marketing tactics may have crossed a threshold. “The Crown arrests were not surprising. What was surprising was they believed they were immune from the warnings that China started issuing to all foreign casinos,” explains Lee. A common tactic to circumnavigate the ban is to engage in marketing activity under the auspices of promoting a resort property rather than gamOCTOBER 2017 www.ggbmagazine.com

p. 22 china:Layout 1 9/14/17 5:40 PM Page 24

The Crown arrests were not surprising. What was surprising was they believed they were immune from the warnings that China started issuing to all foreign casinos.

“

”

—Ben Lee, Managing Partner, iGamix Management & Consulting

bling specifically. This was not the case, Lee reckons, in Crown’s case. “It would have not taken much for anybody sitting in on the conversations to realize that they were, in fact, promoting gambling.”

Room to Grow While there’s certainly no insignificant risk in marketing to Chinese customers, there’s also no shortage of potential reward. The Chinese VIP market hasn’t just recalibrated; it has continued to grow, explains Zhu. “I think it’s still growing; maybe not as rapidly as, say, in 2013 or 2014, but it’s still growing,” he says, referencing notable improvements in China’s real estate market and other macroeconomic indicators. “Six months ago, people were a little more concerned about a possible slowing down of China’s economy.” China also remains a largely untapped gaming market. Only an estimated 2 percent of the country’s gaming market potential has been thus far penetrated, explains Lee, and 80 percent of all visitors to Macau from the mainland come from neighboring Guangdong province. “Penetration of China is actually very, very low,” he says. “Macau is only servicing a very small part of China. We have barely scratched the surface.” And despite the institution of programs designed to limit players’ gaming spend abroad, Chinese outbound tourism on the whole is rapidly increasing, with 122 million outbound trips in 2016—up from 107 million in 2014, according to the Chinese National Tourism Administration. Further, total consumption by Chinese tourists overseas was $110 billion in 2016. Obviously, these tourists are spending money on other items aside from gambling, but the overall impact is still significant. “Gaming may not be even close to the majority of their spend, but if you take into consideration the huge base and the scale, that spend or that volume is still a pretty significant amount,” says Zhu.

New Capital Outflow Controls In late August, the Chinese government again raised industry eyebrows by issuing an order prohibiting mainland Chinese companies from investing in overseas projects having to do with gambling and a variety of other leisure industries. On the surface, this order seems to affirm the perception that the Chinese government is seeking to corral gamblers back into Macau. “Not only do they prefer the players to come back to Macau to play, they are making sure that Chinese companies are not investing in competition elsewhere outside of Macau,” says Lee. But McGregor suggests that the investment restrictions may just be another instance where gambling is simply caught in a crossfire between competing poles of influence within the Chinese government. While there has been a surge in Chinese overseas investment recently, the party is not pleased with the terms of many such deals, and is concerned that many of them are simply ruses for moving money around outside of the country. 24

Global Gaming Business OCTOBER 2017

“Some of it’s crazy stuff—people overpaying for European soccer teams and everything like that,” McGregor says. “There’s a few things going there, but it’s a serious campaign; it’s not one of these pithy little edicts. It’s a real directive and you’ve seen real things happen as a result of it.” “The Chinese don’t want to do what the Japanese did in the 1980s and just waste all this money on dumb overseas deals,” he continues, adding that there is suspicion that Chinese entrepreneurs are deliberately overpaying for assets overseas to get money offshore.

Japan Conundrum While the Chinese feeder market is certainly large enough to lift all neighboring boats, recent history tells us that there is no guarantee that the Chinese government won’t, on a whim, cut off the flow of travel to a particular country if it deems a move to be in the national interest. South Korea is a case-in-point example, as China has recently throttled the flow of tourists in response to the country’s deployment of the THAAD missile defense system—sourced from the U.S.—to wield against potential North Korean aggression. The result has been a monumental slowdown in VIP gambling numbers, with Paradise’s gambling volume from Chinese VIPs dropping 27 percent year-over-year in the second quarter of 2017. Japan is the newest Asian nation looking to legalizing casinos of its own, but discussions are tightly focused on marketing to locals, as the interested foreign operators have made this a prerequisite to their coming to invest billions of dollars building new integrated resorts in the island nation. “Japan’s gross gaming revenue story will be primarily local Japanese, so they won’t have much to worry about from a political risk perspective as it relates to GGR,” says Govertsen. Why not try to attract the Chinese? After all, Tokyo is just a three-hour flight from mainland China. Lee reckons that the emphasis on the local market is necessary at this point to avoid prodding any sleeping giants in Beijing, who likely will not be keen to the Japanese targeting Chinese VIP clients. “I believe that China has given a very quiet warning to Japan that if they were to ever target mainland Chinese as their primary customers, China would basically clamp the flow of Chinese tourism to Japan as they did to South Korea,” he says. However, Japanese politicians have discovered that there isn’t much enthusiasm among the population to build the casinos, and as a result, measures such as entry taxes have been proposed as a means of trying to keep the locals out of the properties. “The locals are saying to the foreign operators: ‘Yeah, we want your investment, but we have huge problems with gaming issues and we don’t really want to sacrifice our locals to your international ambitions,” Lee explains. “Without the Chinese market, the only thing that would attract the operators are the locals. Without the locals and without the Chinese, there is no market.”

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p. 26 IGT Coverstory:Layout 1 9/14/17 5:41 PM Page 26

Evolution Gaming produces live casino games for online and land-based casino companies

Focus on the

Player For IGT to remain one of the most dominant slot manufacturers in the industry, Renato Ascoli says players should lead every innovation By Roger Gros and Frank Legato

he longtime chairman of IGT, Chuck Mathewson, was often spotted in Las Vegas casinos just observing slot customers. He would stand off to the side and watch how they played, who they played with, and note their reactions to various games and themes. He would use the knowledge he obtained on those excursions to determine which new IGT games might work well on the casino floor. “If the players don’t like the machines, how can the operators expect them to succeed?” he once told a gaming reporter. Maybe not so coincidentally, current IGT CEO North America Gaming & Interactive Renato Ascoli holds the same view. “I managed, in the past, VLT operations in Italy, as an operator. So, I have the tendency to put myself in our customers’ shoes,” he says. But don’t expect Ascoli to be wandering around the casinos observing customers. His method is a little more scientific. “When I started working here, we thought it was important to prove to our customer that the content and the product we deliver have gone through a thorough marketing approach, including focus groups, market tests, field trials, and things like that. This is the kind of the culture that we have instilled, and we ask people to think of the players, first and foremost.” When Ascoli describes the foundation of IGT, he says they focus on five touchpoints: being passionate, responsible, collaborative, authentic and pioneering. For Ascoli, however, one stands out. “My personal one is really about being passionate,” he says. “This, I think, is what really characterizes IGT, as I see the people working here. “I see them being constantly passionate about what we are doing, and always aligning our interest with our customers.”

Global Gaming Business OCTOBER 2017

Big Deal When IGT was acquired by GTECH/Lottomatica, there were some natural synergies that spurred the interest. The $4.7 billion deal created a company that was a major player in slot manufacturing, lottery supply and operation, and social gaming. Because each side brought something different to the table, Ascoli says the transition has been almost seamless. “I have never quite felt a major clash of cultures here, even from the very beginning,” he says. “I think ultimately, there was a nice blend. And you should remember, first and foremost, that the two companies were quite complementary to each other. GTECH was very strong in lottery, and IGT was the very strong brand in gaming—No. 1 in gaming, in fact. So, we were bringing B2B and B2C experience together under one roof. “Clearly, the experience at IGT was mainly B2B, but there was also DoubleDown Casino that introduced some direct content to the players, not just our casino customers. Some people have used the term ‘smooth.’ I would use that, too.” When IGT purchased DoubleDown Interactive for $500 million in 2012, the purchase was criticized as too rich for a small social casino company. But IGT was able to parlay its experience in gaming with a strong social casino brand, and DoubleDown soon was producing a respectable

p. 26 IGT Coverstory:Layout 1 9/14/17 5:41 PM Page 27

“I’m a believer in a constant transformation. Some of our customers are beginning to create new locations, combining more entertainment and gaming at the same time in the same space, and we support that effort.” —IGT CEO North America Gaming & Interactive Renato Ascoli

percentage of the company’s revenue. So when IGT announced it had sold DoubleDown to DoubleU Games Co. (DUG), a global social casino operator headquartered in Seoul, South Korea, there was almost an equal amount of surprise as when they bought it. Even though the company made a healthy profit—DoubleDown was sold for $850 million—there were some skeptics. But Ascoli says it made sense. “The market had changed dramatically over the past two years,” he explains. “The sale of Playtika by Caesars got a lot of interest, and we began to receive a number of quite significant offers, actually, that we could not simply refuse.” Ascoli says the market had gotten much more competitive and the pressure to maintain the revenues being created by DoubleDown was increased. “We thought we had a credible and strong plan,” he says. “And actually, the player that ultimately bought DoubleDown, DUG, actually bought the plan that we were going to deliver. “So, that was something like achieving a plan without taking the risk. That was something that we discussed with the board, and the board ultimately approved the idea to sell DoubleDown.” IGT, however, is not leaving the digital space, according to Ascoli. “Through the agreement that we cut with DUG, we are actually committed to deliver more games to them, and profitable, good games to them, through a mechanism that we have in place. And we’ve been enjoying the success of DUG through increased royalties. So we have a true vested interest in continuing to participate in this space, and supporting DUG to grow.”

The Big Show For IGT, G2E 2017 is the culmination of what they’ve been promising over the past two years after the merger was completed. “The market will be able to appreciate and assess all the things we are bringing to the table,” says Ascoli. “Stepper, premium. VLT, Class II, new systems, new technologies for the virtual reality. ETG, too, that we recently revamped quite a bit. And there will be our opportunity to assess market acceptance, and make potentially some decision, in terms of portfolios, immediately after. But we are quite confident about what we’ve done.” “You’re going to see a lot of really new and exciting products,” adds Rachel Barber, chief technology officer for IGT. “Last year, we focused on creating more diversity in our cabinet offerings, and this year, we’re continuing to do OCTOBER 2017 www.ggbmagazine.com

p. 26 IGT Coverstory:Layout 1 9/14/17 5:42 PM Page 28

4D mid-air haptic technology—you point and gesture, and the game responds

that, but we’re also incorporating various integrative technologies into these cabinets, to push the envelope there.” Barber says IGT has been pushing the technological envelope in a lot of ways that will be evident at G2E—“other technology innovations outside of in-cabinet technology innovation, such as PlaySpot, Cardless Connect, Resort Wallet, different mobile offerings,” she says. “We’ve got our Lucky’s Quest game, which is offered on the CrystalCore cabinet, that allows you to continue play on the mobile device. We’re investing more and more in systems innovations, and of course, we’re excited about our virtual reality Siege VR game, which we’re going to be showing at G2E as well.” One of the truly advanced technologies for IGT has been the 3-D slot machines in the TRUE 3D series, and now the TRUE 4D haptic slots. “I’m particularly keen on the new 4D technology that we’ll be showing at G2E, which, to me, is a really new player experience,” Ascoli says. “It’s something that the market has never seen before, and I’m looking forward to receiving customer feedback and player feedback about that. But what I can tell you is that the technology that we are using is mingling nicely with the content that we have designed. So, a nice blend of technology and player experience.” Ascoli is a little surprised about the success of 3-D technology. “A few years ago, when we elected as GTECH to invest in the 3-D technology, we thought that would be a niche, nothing more than that,” he explains. “But it has become much more than that. “We are trending 3,000-plus units, as of now. And the number continues to improve. And so, it appears that players tend to like that kind of experience, and we will continue to invest in that space. The mid-air haptic technology is significant, in the game that we’ll be showing, which is Sphinx 4D. But we also have introduced eye recognition, gesture recognition, which makes the experience something new for players. So, again, technology itself is fine for all of us, but whenever it blends nicely and offers a seamless and simple player experience, that’s when technology becomes friendly.” 4D mid-air haptic technology—you point and gesture, and the game responds—is “not only new to gaming, but it’s being launched, by and large, ahead of the consumer electronics space as well,” comments Barber. “Any time you’re offering something brand new and different to players, you’re creating an environment that’s right for potentially capturing new players. And this is what we really want to do for our customers.” 28

Global Gaming Business OCTOBER 2017

IGT’s core products include stepper machines and video poker. Despite dominating these markets, Ascoli says the company isn’t resting on its laurels. “When we came here, we thought that IGT was holding some major assets—some golden nuggets, if you will,” he says. “The poker presence is a big one, and the stepper, too, but even some specific brands, like Fort Knox. I encouraged the team to try to work with that. Find a way to facelift that brand, renew it, renew it to the new era, but be respectful, at the same time, to the original player experience. This is the kind of challenge they’ve been working with so far. And so, this is why I think that those brands still have a lot of potential.” At one time, during the reign of Chuck Mathewson, IGT controlled almost 70 percent of the world market. While Ascoli recognizes that winning back that market share is impossible, he says the company is focused on growing market share. “The ecosystem we are living in is completely different,” he says. “What we are committed to, and what we are striving to make happen, is a more significant recovery of our market share. We still have a significant position in the market. In some areas, we are leading, like poker and stepper, and in some others we are among many competitors. We are working very respectfully to watch what our competitors are doing, but I think we have put the right effort to improve our market share, in the near and long term.”

Skill and Beyond A year ago, IGT produced several games that had an element of skill, including Texas Tea Pinball and Lucky’s Quest. Ascoli says that development has not halted, and IGT is actively exploring skill games. But will it become a serious industry trend? “I honestly do not know,” he says. “What I can tell you is that IGT as a company decided to design some games, heavily dependent on the skill component, and we are showcasing them to customers. The appreciation is there, but the interest is not clear yet to me. Although, I have to say, we introduced skill component into more natural, traditional slot machine games, and the early feedback I’m getting from the market is very positive—encouraging. But I would not characterize that product to be a completely immersive skill game experience. But maybe that’s the way to bridge traditional slots with skill games.

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“Any time you’re offering something brand new and different to players, you’re creating an environment that’s right for potentially capturing new players. And this is what we really want to do for our customers.” —Rachel Barber, Chief Technology Officer, IGT

“I see the market as quite polarized at the moment. In some areas, they will never accept anything like that. Some others are more keen on experimenting with that solution. But there’s not clear feedback from the market yet.” If it has to do with technology, however, IGT is there. The company released Cardless Connect last year, which cuts the tether between the game and the cabinet; and PlaySpot, which enables for-money gaming on mobile phones where authorized. “I think we’ve made significant progress with our mobile solutions, like PlaySpot and Cardless Connect,” says Barber. “They offer our operators the ability to enhance their land-based casino environment, which is an opportunity that has a lot of potential. Every consumer has a mobile device on them at all times, so giving the operators the opportunity to capitalize on this with these types of offerings really gives the players additional means of convenience, and provides them a new way to play the games.” Barber adds that one of the carefully watched aspects of this year’s IGT display at G2E will involve the company’s virtual reality product, Siege VR. The product presents an elevated surface for two players wearing headsets to engage in any variety of virtual-reality battles in various virtual landscapes. Barber says it will be paired with IGT’s Tournament Manager solution to create competitive VR contests. “It’s been exciting to work on the launch of a product using this VR technology,” Barber says, “which has such broad consumer appeal, finally with a monetization model in place that we really think is going to work.” “We’re always interested in introducing new features by which you interact with the slot machine,” says Ascoli. “Everything we are doing in the mobile area is actually demonstrating that. Our Cardless Connect solution becomes a cashless solution, and potentially growing and offering operators the opportunity to have a direct communication to their patrons, through their mobile phones and devices. “Another solution, PlaySpot, is an opportunity to allow a patron sitting at a bar, or at the club, or at the show, to place a bet or potentially play a game in a different environment—in his or her room, or at the pool. So, again, we are trying to create the condition by which a person that does not feel particularly attracted by the traditional slot machine, may experience the slot machine game in a different way or in a more confident environment 30

Global Gaming Business OCTOBER 2017

for them.” IGT built a mobile sports betting solution for MGM that allows players anywhere within the state of Nevada to place a sports bet. “Player satisfaction is there,” says Ascoli. “There’s no cannibalization at all towards what the operators are doing in the normal land-based operations. On the contrary, whenever you have a big event, like March Madness, they can actually enjoy the opportunity to expand their wagers quite significantly.” Ascoli says IGT is constantly evaluating the trends on the casino floor and wants to be out front of any development. But he also says those changes don’t happen overnight. “I’m not a believer of major shocks in the market,” he says. “I’m a believer of a constant transformation. This is why we are working closely with our customers and we are supporting some solutions. Some of our customers are beginning to create new locations, combining more entertainment and gaming at the same time in the same space. We are open to investing, to supporting in that space, because that will be, I think, a good investment for all of us.”

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Global2 0Games 17 Evolution Gaming produces live casino games for online and land-based casino companies

Our annual review of the best in the slot sector By Frank Legato

elcome to Global Games, our annual review of the games, cabinets and new brands the world’s slot manufacturers are bringing to the Global Gaming Expo, and will be launching over the coming year. Last year’s G2E was dominated by a variety of new cabinets and game styles from all the manufacturers. This year’s crop of new offerings fills all those and more new form factors with a flood of innovative content, typically mind-boggling in variety. This year’s array of new slot games offers both groundbreaking new technology and a return to and modernization of some of the classic game styles that originally made the slot machine the most popular offering in the casino. Groundbreaking new technology, of course, is a mainstay of G2E. This year, attendees are likely to flock to IGT’s booth to view mid-air haptic and gesture-control technology in the Sphinx 4D game. They are likely to go to Scientific Games’ booth to view new formats like J43 and TwinStar 3RM, a new stepper series, or Aristocrat’s booth to see the new EdgeX cabinet and the latest version of The Walking Dead. The buzz at the Konami booth will be new entries into the Concerto family of cabinets. For Everi, it will be a growing library of games in all styles. AGS will fill out the library of its innovative ICON and Orion cabinets, while Aruze, Incredible Technologies and others launch new form factors and new ways to play. Our Global Games section this year also includes the startups introducing new skillbased and video-game formats to the slot floor, Gamblit and GameCo, as well as new innovations from European leaders such as Merkur and Novomatic. New technologies abound this year, from mobile and cardless play to virtual reality products. But this year’s G2E will also showcase a renaissance of the traditional spinning-reel stepper product, as most of the major manufacturers produce new content in what has been something of an underserved market. The displays of the world’s slot manufacturers offer a peek into the evolution not only of the games themselves, but of the slot floor in general. On the following pages, in alphabetical order by manufacturer, are the new games that will define the future of the slot segment.

All articles written by Frank Legato unless otherwise indicated

Global Gaming Business OCTOBER 2017

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AGS

Evolution Gaming produces live casino games for online and land-based casino companies

Gearing Up AGS shifts into high gear as a full-service gaming supplier, including a deep library of new slot games and super-charged new progressive solutions

hen it comes to AGS, Andrew Burke has seen it all. And, over the past three years, that’s been a lot. Burke, who is senior vice president of slot products for AGS, joined the company in 2008. The company he joined, a primarily Class II supplier known then as American Gaming Systems, bore no resemblance to what it is now: one of the fastest-growing slot manufacturers in the business. During Burke’s early years with the company, he witnessed its breakthrough into Class III markets. Spearheading that breakthrough was the addition of David Lopez as CEO at the end of 2013. Lopez would help initiate a total transformation of AGS as a supplier, not the least of which included putting Burke in charge of slot products through two key acquisitions—Colossal Gaming and Cadillac Jack. The former would bring Colossal Diamonds, the giant-format three-reel slot machine on the distinctive “Big Red” cabinet, with a program math that continues to attract players today. The high-performing Big Red opened operators’ doors to AGS as a Class III supplier, and soon after that, the company’s acquisition of Georgiabased Cadillac Jack brought with it Sigmund Lee, as chief technology officer—along with a team of obsessed game and hardware designers—and the Atlas core video slot platform, giving the company a high-powered basis for future R&D. Lopez, of course, was leading AGS’ reinvention at the same time, into what is now, three years later, a full-service gaming supplier with a successful table-games division and a new interactive arm that is producing successful free-to-play mobile games along with a white-label social

casino solution. At the same time, Burke oversaw the evolution of slot products with the help of talented game development teams in Las Vegas, Georgia and Austin, Texas. These teams, combined with Lee’s vision and expertise, helped launch the company’s new core platform, Atlas, and expanded the company’s product library, not only with new games, but with a parade of new form factors. OCTOBER 2017 www.ggbmagazine.com

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“We wanted to offer something that would connect across multiple cabinets, across multiple titles and themes. We’ll be officially launching our Xtreme Jackpots games at G2E ready for sale and installation.” —Andrew Burke, Senior Vice President of Slot Products, AGS

The AGS of 2017 is using what is perhaps the strongest of those form factors—the new Orion cabinet, officially launched in May—along with ICON, the high-performing first core cabinet of the newly merged company, to capitalize on the best of what the freshly augmented R&D staff creates. Burke says Orion has exceeded expectations since the launch of its first units last spring. The marquee-style cabinet, with a 42-inch vertical monitor surrounded by 498 game-controlled LED lights, has scored big hits with inaugural titles Fu Nan Fu Nu and River Dragons, each with beautiful Asianthemed imagery that is enhanced by the Orion display, particularly when games are banked together. “This continues to be a record year for AGS, in particular in the slot business in every category,” Burke says. “That’s attributed to some really strong performance from our games. We launched Orion in May, and we have more than 700 units installed now, with a very large pipeline of product.”

Building the Library Burke says this year’s G2E lineup for AGS is, first, about building depth in the company’s library of games. “We have expansive game libraries in every one of our product categories now, with dozens of games performing well above house average,” he says. “On our ICON cabinet, Golden Wins, Longhorn Jackpots and Buffalo Jackpots are loved by players, and now we’ve added a whole host of other titles that mirror the same game play and math.” One way AGS is linking the best of the new core games is through new progressive products. One is called Money Charge Jackpots, a multi-link progressive series designed to create more frequent jackpot wins at larger amounts, accented by dynamic sign packages. New ICON games, like Wild Surprize, will link to another new progressive line and feature core-gamblerstyle math and frequent bonuses. Money Charge will share the stage with the progressive product Burke says will be one of the highlights of the company’s G2E lineup, Xtreme Jackpots. It’s the first AGS multi-linked progressive ecosystem connecting across both the core ICON and premium Orion cabinets—linking more games for more frequent awards and higher jackpots. New base games Buffalo Jackpots XJP and Longhorn Jackpots XJP, based on the player-favorite originals, will have four jackpot levels and two bonus rounds. Burke says the Xtreme Jackpots series will be “a highlight” for the slot division. The Xtreme Jackpots base games feature Jackpot Pick and Free Spins Bonus events. When a full stack of wild symbols lands on any of the middle reels during the base game, players have a chance to hit the Jackpot Pick Bonus and are guaranteed to win one of the four Xtreme Jackpots levels. Each 34

Global Gaming Business OCTOBER 2017

game in the series also features a unique scatter-initiated Free Spins Bonus in the base game. The Grand Jackpot reseeds at $10,000 and climbs rapidly from there. “Progressives are something we do well,” Burke says, “which has led to great success for our games. We wanted to offer something that would connect across multiple cabinets, across multiple titles and themes. We’ll be officially launching our Xtreme Jackpots games at G2E ready for sale and installation. “These new games can be linked across both Orion and ICON, with gorgeous new sign packages that highlight the Xtreme Jackpots brand and the running progressive totals. Players will know instantly that the same jackpot on the ICON games is also on the Orion games.” He adds that one of the most promising aspects of the link is the jackpot frequency inherent with the sheer number of connected games. “When you have lots of games on one link in a facility, you can really drive the frequency of that jackpot,” Burke says. “That creates achievability for players. They start asking each other if they’ve ever hit that $10,000 jackpot, and the more games you have on one link, the more people you will have who have had that experience. “We’re excited to launch something that links everything together and allows us to leverage the volume of our titles.”

Encore Performance Another highlight for G2E will be the next generation of the product that broke AGS into the Class III market. Aptly named Big Red 2, this new

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version features brighter colors and animations, powered by the Atlas platform, and the new game Colossal Stars. According to Brett Vela, associate product manager for AGS, the new game uses similar math to the popular original Colossal Diamonds. “The math and simple game play is what players love about the original, and we’ve followed that same format with Colossal Stars,” Vela says. Burke adds that in June, AGS launched several new high-denomination video slots for the ICON cabinet based on Colossal Diamonds’ math model, showing them to customers at its GameON customer conference. “We’ve seen some really big numbers in early performance,” he says, adding that high-denomination games have represented an underserved market for some time. Burke cites French Quarter 7s and Premier Diamonds as great early performers in the series. Finally, the slot division will preview another new cabinet series at G2E. “It’s important for customers to know we have a real hardware roadmap,” Burke says. “It’s not ICON and Orion and done. We’re looking out five years into the future and saying, here’s the categories we want to be in, and here’s our timeline for doing it. We’re committed to that. “Last year, we showed Orion before it was commercially available. Fastforward to now, and we’re going to have 700 installed, with a big product pipeline. We’re going to show this new product at G2E with an official launch sometime next year. You’ll have to stop by our booth to see it.” Burke says the company is extending the design and feel of Orion for the new cabinet. “The design line of Orion is very cool and innovative, and we’re going to definitely use that on other things going forward,” he says, adding that among the improvements on the newest cabinets is an LCD button deck, already on some Orion units in the field. “We’ll also have an LCD topper on display for Orion that will really give you a full picture of that product,” Burke says. The LCD topper is one of a new group of custom-designed digital sign 36

Global Gaming Business OCTOBER 2017

packages AGS is adding to its linked progressive products. Attract messages and celebrations burst across the screens to showcase jackpot totals, game play and bonus rounds. Among other game highlights for G2E are new Orion titles including Olympus Strikes, featuring math from the mega-hit Fu Nan Fu Nu. “We expect that same kind of success with a new art package on Orion,” says Burke. AGS will, naturally, showcase all the latest from all of the company’s divisions at G2E. The table-game business, which already has nearly 2,000 table game products installed worldwide, is launching a follow-up to its award-winning Bonus Spin table-game progressive system. Bonus Spin Roulette will add the progressive side bet to the roulette game. Additionally, the company will display new specialty games including Premium Hold’em, which offers an action boost over traditional hold’em-style games. On the utilities side, AGS will display its Dex S single-deck, commercial-grade shuffler on proprietary game Chase the Flush with Bonus Spin, a derivative of the game in which players compete with the dealer for the longest flush. On the interactive side, six new partners this year engaged Social WLC, AGS’ white-label casino solution. It is a turn-key, customized social casino solution based on proven, player-favorite, land-based content, including the newest additions Jade Wins, Shadow Fox Dreamcatcher and Rumble in the Jungle. Meanwhile, the slot division arrives at G2E with its largest display ever. “We’ve started connecting with more corporate customers who may not have been familiar with the AGS story and are now really starting to understand that AGS products are something they need on their floors,” Burke says. “The timing of G2E is great for us this year. We’ve had so many positive things happening for us as a company, and we’re excited to share those stories and build new ones as we move into 2018.”

SALES@ARUZE-GAMING.COM • +1 (702) 361-3166 • WWW.ARUZEGAMING.COM

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Ainsworth Game Technology

Evolution Gaming produces live casino games for online and land-based casino companies

Ahead of the Pac A new Pac-Man slot game centers a huge collection of Class III and Class II innovation from Ainsworth, including new progressive links and a patented Class II progressive feature

he G2E display of slot manufacturer Ainsworth Game Technology will be unlike any former booth of the Australian slot-maker founded by industry legend Len Ainsworth. In addition to being larger than any former Ainsworth booth, it will be the centerpiece of the expansive G2E display of its new majority owner, Austria’s Novomatic Gaming Industries GmbH. But while the combined booth is representative of the fact that the integration of the two former companies is expected to be complete by the show, it has been clear that the Austrian firm has no intention of changing the course or slowing the momentum of Ainsworth in the U.S., where it opened a new 300,000-square-foot manufacturing, R&D and sales facility in Las Vegas two years ago. While Novomatic is marketing Ainsworth games and hardware in its home base of Europe—in August, Novomatic’s global sales division assumed management of Ainsworth European sales efforts—Ainsworth has been busy building up its Las Vegas game development studio, which now takes the lead in designing slot games for the Americas. In January 2016, a third design studio joined the Las Vegas facility and the parent company’s Sydney studio, when Ainsworth acquired Nova Technologies, a Class II slot supplier based in Greenville, South Carolina. The company’s Class II R&D remains centered in the Greenville studio, which also works with the slot-maker’s other design teams on many games. Meanwhile, Ainsworth has geared up its expansion efforts in U.S. markets, including the July 2016 hiring of longtime slot executive Kelcey Allison, former CEO of Aruze Gaming America, as Ainsworth’s senior vice president of sales, marketing and service for North America. “Taking over the sales, marketing and service aspect has been absolutely rewarding for me here at Ainsworth,” Allison comments. “It’s been an absolutely great opportunity. We see a lot of market growth here in the next six to eight months.” Most recently, Ainsworth secured licensing in Colorado and British Columbia, and will soon be licensed in Washington state. “It’s important that we’re going into Washington state, the fourth largest gaming market in the country,” says Mike Dreitzer, president, North America for Ainsworth Game Technology. “We are looking to get our field trial under way there probably early in Q4.”

Global Gaming Business OCTOBER 2017

He adds that Ainsworth developers were able to modify the company’s platform technology to create a full library of games for Washington’s central-determination gaming system. Meanwhile, the company’s Class II business is booming, with route operations growing and performance on the rise. “We’ve made some massive leaps in Class II,” says Mike Trask, Ainsworth’s director of marketing. “Oklahoma, Poarch Creek in Alabama, California, Alabama Coushatta in Texas—massive strides.

“We’ll be introducing a product called AnyBet into Class II markets which we believe is the first Class II progressive to be available at any bet, any game, any line count. It has been submitted for patent.” Trask says the Class II team in South Carolina has been augmented since the acquisition. “In addition to the Nova team, we’ve staffed up significantly from a Class II development standpoint, as we have from a Class III standpoint.” The Class II innovations will be part of an Ainsworth G2E display totaling more than 130 games, including titles for Class III and Class II, new linked progressive brands and premium branded slot games, along with new sign package options. “We’re very excited about this year,” says Dreitzer. “We’ve got a whole host of new products, and it’s all about the content of the games—we really have redoubled our focus on the games going forward.”

Pac-Man Fever For this year’s G2E show, Ainsworth will showcase the capabilities of the groundbreaking cabinets the company has launched in the past two years. Ainsworth’s Class III game library now tops 250 unique titles spread across its range of cabinets, the A600, A640 and A600 Slant Top.

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The A640 has been gaining steam since its introduction less than two years ago. “I like to call the A640 the iPhone of the gaming industry,” says Allison, “because it is slick, with a minimalized look, frameless... It’s very flexible.” The centerpiece of the entire Ainsworth display this year will be the latest entry for the A640 premium cabinet—Pac-Man Dynamic Edition, a sequel to last year’s hit Pac-Man Wild Edition. For this game, the A640 cabinet was modified to look exactly like a classic Pac-Man arcade machine from 1982. “We were very successful with the initial launch of Pac-Man, and now the sequel, the Dynamic Edition, will follow on with more popular play,” says Mate Delich, Ainsworth’s product manager for the Americas. “We’re really excited about continuing to build the Pac-Man library.” “We’re expanding our partnership with (Pac-Man licensor) Bandai Namco,” says Trask. “The next level of Pac-Man will feature even more interaction, with a tremendous wheel feature, and will continue the success you’ve seen with Pac-Man Wild Edition.” In addition to the wheel bonus, Pac-Man makes appearances offering players wilds and other bonuses at random throughout play in the new game. Pac-Man heads a full lineup of new games on the A640 platform, including new games Desert Dawn/Desert Dusk, Rumble Rumble Eagle and Nostradamus. Desert Dawn and Desert Dusk both feature colorful graphics and a freespin feature in which the player touches a lamp for “wishes” that add additional spins and expand the reels, taking full advantage of the 42-inch A640 monitor to a maximum of 12 rows and 200 paylines. Rumble Rumble Eagle is a sequel to last year’s Rumble Rumble Bear, featuring a two-level curved bonus reel above the main array that awards wild reels and other bonuses. It features a twolevel, “must-hit-by” mystery progressive jackpot. Nostradamus is a four-level progressive carrying a clever theme and some innovative features. One of the four progressives hits every 85 games, on average, through a picking bonus in which the player selects objects from the sky to match a prize. Throughout, Nostradamus’ face moves while he makes wisecracks on the top monitor. “It’s got high entertainment value combined with strong math,” says Delich. The A640 collection also will include several games just recently released to the market, such as Kong of Skull Island, the sequel to last year’s popular King Kong game, also on the A640.

Progressive Power Progressives are a fast-growing game style for Ainsworth, in the A600 format as well as A640. “The A600 will have a whole host of new titles at this show,” says Trask, “in particular Haoyun Dao, an Asian-themed linked progressive that we’re really excited about.” Haoyun Dao (it means “good luck to you”) is a two-game link developed by Ainsworth’s Las Vegas studio. “The games both have really unique features,” says Delich. “During the free games, you can get a Power Feature—on one game, that can win multipliers up to 64X, and on the other, it expands the reels from 243 ways to win to 2,000 ways.” During the free spins, the lower-paying poker symbols disappear from the reel array, leaving only the top of the pay table, with 3X wild symbols appearing randomly on reel 2 and 5X wilds on reel 4. Another special feature is called Power Spot. When the Power Spot logo appears, it awards the credit prize appearing next to the symbol. The three mystery progressives are won through a pick-and-match bonus in which a wild symbol travels from the reels to a dragon that encircles the five-by-three reel array. The player then matches four gold discs to win one of the progressives. The mystery progressive frequency rises proportionately with higher bets—10 times the wager means 10 times more frequent progressive bonus rounds. Another new progressive on the A600 is FirePower, a four-game link with another package of unique features. “Between Haoyun Dao and FirePower, we have very strong linked progressives for the next year,” says Trask. “A third link, Oriental Gold, will be released soon. “We’re really going in on the linked progressive area. We’ve seen the success these have had across the industry, and we have high hopes for our offerings.” Other A600 titles include Big Hit Bonanza, Twice the Diamonds, Cash Cave, Mustang Fortune, Light ‘Em Up and others. All of them continue the trend of new play mechanics and improved takes on sound and art. “The presentation of these games is really terrific,” says Delich, “to the point where they will take A600 to a whole new level.” “We have now a full-fledged studio in Las Vegas,” adds Trask. “Many of the G2E games are coming from Las Vegas.” He says the Las Vegas studio is set to produce around 12 to 15 games a year. “Our focus this year is not so much on quantity as it is on quality,” he says. “Over the next 12 to 15 months, you’re going to see 12 to 15 really strong games out of the U.S. studio.” Many of those games will be high-denomination selections, an area which has become one of Ainsworth’s specialOCTOBER 2017 www.ggbmagazine.com

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ties. “We don’t have a stepper product, but our successful high-denom games are our bread and butter,” Trask says. “If you ask operators around the country what Ainsworth is good at, they will tell you high-denom games. They are our top performers. We’ve done them as three-by-fives, and will continue, using variations on our very successful high-denom math.” “We don’t have any high-denom games doing less than house average, unless they’ve only been out a couple of months,” adds Delich. “Kyoto Warrior, for example, came out last year and was near the bottom for nine months. Then, people realized that in addition to a 2X multiplier, there’s an 8X. It got a huge following on YouTube, and in four months was our No. 1 high-denom game. Since then, it’s consistently two times house average.” Kyoto Warrior, a dollar game in which the payoff for combinations including the Warrior symbol change on every spin, is one of the high-denomination highlights, along with Dragon Drum, in which an animated dragon swoops on the reels to award multipliers and wild symbols; and Mustang Fury, which features “sticky wild” symbols in the free games. Finally, the Ainsworth booth will feature a display of high-performing Class II games placed on the A600 cabinet. Titles shown on the A600 will include Twice the Diamonds, Cash Cave, Mustang Fortune, Light ‘Em Up and other games proven to perform on U.S. casino floors.

And of course, the Class II highlight will be the unveiling of the AnyBet feature allowing players to win progressives on any bet. “The Nova Technologies acquisition, and bringing that company on board with Ainsworth, has fostered tremendous growth for Ainsworth in Class II,” says Allison. “We’ve had some major, significant installs recently, including the Alabama Coushatta Entertainment Center in Texas, where we supplied 190 units out of 700—a 28 percent floor share. We’ve seen spectacular growth on the Class II side.”

Forward Focus Dreitzer and Allison agree that Ainsworth’s focus for the near future is going to be placed solely on the player. “We’re taking the approach that this is gaming, this is entertainment, and we want players to be entertained and have a lot of time on device,” says Allison. “That’s really been our focus over the last year, while incorporating the new Las Vegas studio and the Greenville studio. We’re really focused on keeping players playing, and having a good time.” Dreitzer says the company will explore new game formats as the need arises—skill-based games, for example, “as an incremental evolution.” He agrees that properties like Pac-Man and other possible titles in the partnership with Bandai Namco lend themselves to skill, but Ainsworth is approaching the new genre in a slow and methodical manner. “We’re justified in

Kyoto Warrior, a dollar game in which the payoff for combinations including the Warrior symbol change on every spin, is one of the high-denomination highlights

Global Gaming Business OCTOBER 2017

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ANNIVERSARY

saying that skill-based is not quite there yet, from a market acceptance standpoint,” Dreitzer says. “If you look at some of the installs around the country, it’s not quite there yet. But that doesn’t mean we’re going to stick our heads in the sand. Skill is something we’ll continue to pursue on an evolutionary basis.” “You’ve seen these skill-based games where you’ve gone from zero to 100—from no skill at all to, ‘Here’s a skill game,’” adds Trask. “Now I have to figure out how to do all this, and it’s not an enjoyable player experience. We’ll take it in tiny steps, which will allow the player to understand how the skill-based play works.” Aside from that, Ainsworth will continue to marshal its multiple studios to produce games designed to keep players entertained. “We have a new head of R&D, Kieran Power, who came to us from Aristocrat,” Dreitzer says. “He’s got a really good philosophy around opening up the development process, and broadening it so we don’t have games that all look alike—there’s a lot of diversity in our content.” He adds that Ainsworth will work very closely with its Austrian parent going forward. “We’re a separate company maintaining a U.S. presence, but certainly, having them as a partner globally can do nothing but help us,” he says. “We’re always looking for ways to expand our addressable market, and the relationship with Novomatic will bear fruit in that regard.” Trask says the Ainsworth G2E lineup will include several Novomatic games on Ainsworth hardware. “We’re super excited for this G2E,” says Allison. “It’s going to be our largest display ever in the history of Ainsworth, in combination with Novomatic. We’re doing some powerful branding at G2E to really step up and make a statement that Ainsworth will be in the top four (slot manufacturers) in the next 12 to 18 months—and that is our goal. To keep that focus, not to throw a bunch of boxes out there and see what sticks on the wall. We have proven performance in the current lineup we have, and we’re going to move forward with that.” “Right now, we continue to focus on Class III and Class II video, and we’re looking at some other special opportunities around the country where we can leverage our technology,” says Dreitzer. “It’s really about the core player, providing entertainment and time on device—providing value for the core player. “Again, it’s about the game. Focus on the game. We are making great games. That’s what we do.”

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

Gateway to Asian Non-Gaming Operators and Suppliers Martha Sabol, Koji Ishikawa, and Chang Joo Kim are part of a multidisciplinary team of Greenberg Traurig attorneys advising clients entering Asian markets. With GT offices in Tokyo, Shanghai and Korea, key entry points, our international network of professionals has the legal experience, business alliances, language capabilities and cultural understanding to provide a wide range of legal services to clients in their global activities. Greenberg Traurig’s Global Gaming Group focuses not only on casino operations, but also addresses lotteries, pari-mutuel wagering, charitable gaming, tribal gaming, and internet gaming, where permitted by law. Martha, Global Gaming Practice Co-Chair, focuses her practice on gaming regulatory and business law, representing national and international casino operators and suppliers in the areas of regulatory compliance, acquisition, licensure, internal investigation matters and corporate counseling. Koji, Tokyo Managing Shareholder, focuses his practice on corporate finance and capital market matters. He is experienced in handling crossborder transactions and advising clients in the technology sector. Chang, Seoul Managing Shareholder, represents issuers and underwriters in a wide range of corporate finance transactions, including debt restructurings, investment grade debt offerings, equity-linked debt offerings, rights issues and securitizations. He has broad experience representing Korean companies and global companies doing business in Korea.

Martha A. Sabol

Koji Ishikawa

Chang Joo Kim

312.476.5114 sabolm@gtlaw.com

+81 (0)3 4510 2208 ishikawak@gtlaw.com

+82 (0) 2.369.1000 kimc@gtlaw.com

Global Gaming Practice: Regulatory | Operations | AML | IP | Labor | Litigation Privacy | Real Estate Acquisitions | Financing Learn more at gtlaw.com/capabilities/gaming GREENBERG TR AURIG, LLP | ATTORNEYS AT LAW | WWW.GTLAW.COM The hiring of a lawyer is an important decision and should not be based solely upon advertisements. Before you decide, ask us to send you free written information about our qualifications and our experience. Prior results do not guarantee a similar outcome. Greenberg Traurig is a service mark and trade name of Greenberg Traurig, LLP and Greenberg Traurig, P.A. ©2017 Greenberg Traurig, LLP. Attorneys at Law. All rights reserved. °These numbers are subject to fluctuation. 29480

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Aristocrat Technologies Riding the Momentum Aristocrat uses the strength of its top brands to generate momentum with new cabinets, game styles and unique progressives

very year, it seems Aristocrat Technologies adds a cabinet, a form factor, a progressive or a slot brand that sets it apart from the pack, and inches the company closer to the top of the slot market. And every year, it seems the company adds to the completeness of its library of games. This year is no different. Curved-monitor innovations like the Arc and Arc Double are joined by the unique flame55 cabinet, RELM—the company’ first stepper format—and RELM XL, the first improvement to that reel-spinning hardware. Progressives like Lightning Link and Fast Cash are joined by Dragon Link, Liberty Link and Mighty Cash. And through it all, Aristocrat introduces all the new hardware, new progressives and new game styles by loading them up with some of the strongest brands—both proprietary and licensed—in the business. “It’s about hardware, systems solutions, artistry—it’s all those elements coming together in a strong design philosophy,” says Matt Wilson, Aristocrat’s managing director of the Americas. “That has been at the center of what we bring to our customers, and that is how we have helped them succeed. Now, at G2E, we will present a deep and broad portfolio of products that gives our customers an integrated experience and allows them to speak to every type of player.” “We’ve been focusing on new innovation in hardware and content,” says Nathan Drane, Aristocrat’s vice president of commercial strategy, games. “We will continue that this year.” John Hanlin, vice president of commercial strategy for gaming operations, says the company’s lineup for this year’s G2E will capitalize on the momentum still being generated in three main categories—new hardware,

Global Gaming Business OCTOBER 2017

proprietary progressive links and continued support of established hardware successes with both new content and new versions of the company’s most successful brands. It’s a recipe for success that is proven each year when the company’s big G2E introductions hit the market. Hanlin says last year’s G2E launches are no exception. “One of our biggest debuts has been Fast Cash,” he says. “It has been received widely as an innovative and interesting product, and a great jackpot experience.” Fast Cash is an example of Aristocrat’s surging business in progressives. Its main draw has been frequency of jackpots—the top multisite jackpot is designed to hit every two or three days at an average level of $40,000 with the highest bet. Jackpots are more frequent with higher wagers. Other hits from last year include two games on the imposing Arc Double cabinet— Tim McGraw, featuring the music and performances of the country star; and My Cousin Vinny, based on the 1992 comedy film starring Joe Pesci and Marisa Tomei. “The Tim McGraw game lives up to the fanfare it received last year, and My Cousin Vinny continues to do well in the market,” Hanlin says. Also well-received have been Aristocrat’s first stepper cabinet, called RELM; Helix+, an improved version of the Helix video cabinet with a larger, 27-inch infinity-edge frameless display; and Dragon Link, an improvement on the award-winning and wildly popular Lightning Link multiple-progressive product. This year will see improvements on all those products and more. “We’re taking some of the new hardware we had as prototypes last year and commercializing them,” says Hanlin.

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Coin of the RELM New cabinet products are driving many of Aristocrat’s new-game entries this year. In June, Aristocrat launched the RELM series of reelspinning slots. It is Aristocrat’s new stepper series, created through collaboration between Aristocrat engineers and those of Tennessee-based Video Game Technologies (VGT), which Aristocrat acquired in 2014. While Aristocrat never had a stepper slot product, VGT specialized in reelspinners for the Class II market. The RELM series was created to capitalize on what the company’s executives saw as an underserved market, the traditional stepper player. The RELM cabinet features protruding, oversized reels, backlit with colors and surrounded by a display employing in the neighborhood of 400 LEDs, which the game designers use as enhancements displayed in sync with game events. In June, the company launched the series with eight inaugural games—7 Salute, 7 Paradise, Triple 7 Wildfire Double, Golden Flower, Crazy 7s, Ancient Pearl, Red Odyssey, Double Gold Spin, Double Hot Fire, and 3x 7 2x Lotus. The games all follow the math model of the traditional high-denomination steppers. The top monitor is used for attract or displays of multiple progressives. (Inaugural game 7 Salute includes a seven-level progressive jackpot.) There is a handle. Every win is reinforced with the powerful sound of a real mechanical bell, enhancing every winning spin on the 23inch high-definition monitor. The June introduction kicked off a launch of a 24 expected titles over the next two years. This year, Aristocrat is doubling down on the reel-spinning genre with RELM XL. Set for a launch at G2E, RELM XL places a 43-inch curved monitor above the spinning reels, with a bonus wheel as a topper. Inaugural games for the cabinet tap two of Aristocrat’s most successful current game franchises—the first games are Britney One More Time, Buffalo Inferno and Buffalo Thundering 7s. All have a wide-area progressive option, and according to Hanlin, the games will each be available in three price categories. Buffalo Inferno and Buffalo Thundering 7s employ high-denomination stepper math (dollar and up), with the Britney game a mid-denomination stepper (nickels through quarters in a buy-a-pay setup). Another new cabinet, called “flame55,” was previewed at G2E last year, and is ready for launch this year with four inaugural titles. The distinguishing factor of this cabinet is a dual curve—a 55-inch vertical monitor curves in two places, forming the shape of an “S,” with the bottom and top areas of the monitor tilted toward the player. “It’s a very sexy cabinet, with lots of curves, and signage to match,” says Hanlin. “This year, we’ll introduce a 44

Global Gaming Business OCTOBER 2017

full commercial package to launch in early 2018, and we’re excited to release product in our premium video space on the flame55.” As with the RELM XL, Aristocrat is tapping its most popular game franchises for the launch of the flame55 cabinet. The first two games will be a new Mariah Carey title and Game of Thrones: Fire and Blood. A new version of Tim McGraw will follow. Another new cabinet is the Helix XT, which transforms the original Helix cabinet with a curved, 4K screen that bends at the top toward the player, and a new virtual button deck. It is launching with Gold Stacks, a popular game in the manufacturer’s J*Series (for “jackpots”) featuring a unique wagering configuration that offers players an innovative Gold Reel “Buy-Up” mechanic. Buying the gold reels gives the player stacks of major symbols where the gold appears on the reels. Gold Stacks also features a four-level single-area progressive and a “choose-your-volatility” free-games feature. Other games to be displayed on the Helix XT are More More Chilli and More More Hearts—new versions of popular Aristocrat video slots. The originals had four reel sets in the feature. The new versions have up to 24 games in one in the feature. Finally, one more new cabinet making its debut at G2E is the innovative dual-player-style EdgeX. The EdgeX cabinet has a completely new, eye-catching design featuring dual 43-inch landscaped-curved LCDs that provide personal panoramic game views with maximum horizons. The LCDs are ultra HD and 4K-ready. The dual monitors create a doublewide gaming feel in a standard footprint. Adding to the social component is a new dual-player virtual button deck for two-play operation. Further, the virtual button deck allows for virtually unlimited messaging opportunities, while providing maintenance-free operation. The cabinet includes extras like a USB port for smartphone charging. “The sensory experience extends to EdgeX’s stereo audio plus ported subwoofer along with individually controlled LED edge lights,” says Drane. “What’s more, its ergonomically designed sound bench invites single or dual play, appealing to individual-style or social-style players.” The cabinet is launching with The Walking Dead 3 single-site progressive game, based on the TV show’s seasons 6 and 7. The new game takes full advantage of EdgeX’s design. Hanlin says yet another new cabinet will be previewed at the show, with a new “mega-license”—a slot game featuring Madonna, with footage and music highlighting the star’s long career.

Wait for the

on booth # 1259

NOVOMATIC AMERICAS SALES LLC Phone: +1 224 802 2974 sales@novomaticamericas.com www.novomaticamericas.com

2017_104_IndGam_FDTD_US.indd 1

21.08.17 11:06

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Brands and Themes Aristocrat’s G2E lineup will include its share of new licensed slot games, as well as new versions of themes that are already proven hits. Among the new themes will be Westworld, based on the HBO series now entering its second season. Westworld is based on the 1973 film of the same name, depicting an amusement park replicating a town in the Old West, complete with saloon shootouts in which guests face down android desperados—until a glitch in the android technology results in them actually killing guests with real guns. The TV show was HBO’s highest-rated program last year. Aristocrat is using the Arc Double format to bring the show to the slot floor. Other new themes for the Arc Double include The Big Lebowski, based on the 1998 comedy starring Jeff Bridges as Jeffrey “The Dude” Lebowski, an aging L.A. hippie and avid bowler who gets into trouble after he is mistaken for a brash millionaire who shares his name. All the funniest scenes of the film are represented in bonuses and reel-spinning—and even in the carousels, which carry the theme of the bowling alley where all the film’s characters meet. The G2E Arc Double lineup will round out with new entries in the Grand series—Timberwolf Grand is the game—and the fifth game in the popular Tarzan series, as well as a new game based on The X-Files, the popular sci-fi series about government efforts to conceal evidence of extra-terrestrial life. One more Arc Double game, which Aristocrat is keeping under wraps until the show, will involve what the company calls a “rocking partylicensed title.” Meanwhile, the Arc Single cabinet will feature new titles including Elvira, Ted, Pan Am and Zorro. The Helix cabinet will showcase game titles including the award-winning Lightning Link, and the Wonder Wheels cabinet will feature the Candyland game theme and the Wonder Wheels Cashman game theme. Additionally, Aristocrat will show Dragon Link, the follow-up to its Lightning Link progressive product that was launched late this summer. Lightning Link was the company’s first progressive link available in multidenominational setup, and Dragon Link, previewed at last year’s G2E, adds a dollar denomination to the penny, 2-cent, 5-cent and 10-cent denominations, in a carousel of Arc Single cabinets topped by a 360-degree sign. A new progressive link, Liberty Link, will be launched at the show as part of the same family of progressives. The five-reel progressive and Dragon Link both follow the simple jackpot feature of the original Lightning Link, in which pearls land to award progressives and credits and remain in place while the remaining reels re-spin—several lower-level progressives can be won in a single bonus event, and collecting all the pearls returns the top Grand jackpot.

Global Gaming Business OCTOBER 2017

Other new themes for the Arc Double include The Big Lebowski, based on the 1998 comedy starring Jeff Bridges as Jeffrey “The Dude” Lebowski. All the funniest scenes of the film are represented in bonuses and reel-spinning— and even in the carousels, which carry the theme of the bowling alley where all the film’s characters meet.

“It’s the simplicity of the jackpot chase and mechanics that players enjoy,” says Hanlin. “We believe the hold-and-spin mechanic is the best jackpot-delivery system in the market.” Hanlin calls Dragon Link “Lightning Link on steroids.” In addition to these new links, the company is launching a follow-up to the popular Fast Cash link in a product dubbed Mighty Cash, available on several different cabinets. Finally, Aristocrat and VGT will showcase a complete lineup of new Class II games, headed by games such as Extra Bonus, which target Class II first. VGT also will showcase its $uper Hit$ Jackpot$ wide-area progressive titles including Mr. Money Bags $uper Hit$ Jackpot$ and new three-reel mechanical titles including the Mr. Money Bags Sparkling Wilds game. Rich Schneider, Aristocrat’s chief product officer, comments that Aristocrat’s approach to Class II is different than other major manufacturers, in that the VGT engineers design games specifically for Class II operation, rather than adapting proven Class III games for the bingo mechanic. “A lot of people have tried to pour Class III content into Class II, but we feel bingo math can be used to enhance the gaming experience,” Schneider says. “We feel we’ve landed in the Class II space with games that play stronger than their Class III counterparts. “There is more flexibility with bingo math, and our games do as well as or sometimes better than Class III. That’s exciting, because for those casinos that only operate Class II or tribes that want to maintain a Class II footprint, this gives them a great alternative.” Aristocrat’s award-winning Oasis casino management system will be on display at the company’s G2E booth as well, with new features such as Oasis Loyalty, winner of the platinum award at the 2017 GameChangers Marketing Awards at the Casino Marketing & Technology Conference. But as always, visitors to Aristocrat’s booth at G2E will find a mindboggling array of games, in a wealth of new cabinet styles and form factors.

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Aruze Gaming America Into the Future With new leadership and an emphasis on improved technology, Aruze Gaming Americas looks to the future

he next phase of growth for Las Vegasbased Aruze Gaming America actually began a year ago, just before G2E 2016. That’s when the company hired Fred Nunez, a veteran of both casino operations and supply, as the company’s new director of product management. Nunez, former slot director of California’s Soboba Casino and director of game operations for Class II supplier Rocket Gaming Systems, brought a new perspective to growing a product base that already had big hits and lots of variety. Then in March, Aruze announced that Eric Persson, a veteran operator whose resume included stints as senior vice president of Las Vegas Sands Corporation and senior positions for Harrah’s Entertainment, Coast Resorts, Delaware North and American Racing and Entertainment, joined the company as general manager of Aruze Gaming America. Among Persson’s first acts as Aruze GM was to institute an industrytopping two-year performance guarantee on all products using the APX video platform and any new video platforms going forward. Announced at April’s National Indian Gaming Association trade show, the performance guarantee, Persson said at the time, was in recognition that “Aruze has some of the best game designers in the industry, and is proud to stand behind our products. “When you purchase hardware from us, we see it as the beginning of a relationship, and we want our customers to be 100 percent happy. We believe it’s the right thing to do.” Meanwhile, Nunez was busy expanding the reach of many of Aruze’s core products based on the APX platform, including recent successes such as the Cube-X video and Cube-X Innovator reel platforms; the Cube-X Vertical, with its tall footprint used for expanding reels and multiple progressives; and the G-Station series of multi-player electronic table games. “In the past, Aruze was focused on core products,” Nunez says. “You’re going to see us become more than simply a core gaming company. We’re definitely expanding out to other segments.” One area of focus in Aruze’s G2E display this year will be the G-Station ETG segment. “We’ve put more focus on the ETG section this year,” he says. “Shoot to Win Craps has been really successful for us. We really hadn’t done updates on our line of ETGs, so now we’re going to go through and branch out.” Aruze has a strong ETG base from which to grow. Its Shoot to Win 48

Global Gaming Business OCTOBER 2017

Craps product has been a mainstay at the Venetian and other Las Vegas locations, as well as Lucky Big Wheel and several others. The company’s ETG lineup also includes Lucky Sic Bo, Dealer’s Angels Baccarat, Dealer’s Angels Blackjack and Virtual Roulette. One of the improvements Nunez says the company is working on is bringing all ETGs onto the APX platform. “The newer processor opens up more functionality as far as what we’re able to do with the games,” he says. “We’re taking that core ETG and enhancing it.”

Building on Strength For single-player slot games, Aruze has focused on building upon some of the best form factors launched over the past few years. “For our core products, we’ve shifted focus from very basic games to develop different bonuses, different ways to set the games apart,” Nunez says. “We’re utilizing the top boxes we have, but trying to animate them a little more.” The content on those boxes is being developed with U.S. markets in mind, he adds. “Right now, we’re really focused on developing content specifically for the U.S. market,” he says. “Since the last G2E, we’ve shifted some of our resources from Japan to the U.S. That’s one of the reasons they brought me in—to help bridge the gap between our Japanese roots and development and the U.S. influence. We’ve been bringing some team members over from Japan and integrating them into the U.S. and our style of gambling.”

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“When you purchase hardware from us, we see it as the beginning of a relationship, and we want our customers to be 100 percent happy. We believe it’s the right thing to do.” —Eric Persson, General Manager, Aruze Gaming America

The result is a collection of new game series on all of the various form factors. For instance, two new game families are being added to the Cube-X Vertical, launched last year with Tower Stack Dragon and Tower Stack Lion, games that used the extra-long 42-inch top LCD monitor to display three individual four-by-five reel sets. An ante wager called “Plus Factor” adds a selectable play area and turns all symbols on the fifth reel wild. While Nunez says both games have done well, he says the company is creating new game families for the cabinet that require less than the $2 cost-to-cover when employing the Plus Factor. “We have seen that our average bet on those games is over $2, which is great, but it also misses a big segment of the market,” he says. “If you’re not willing to wager over $2, you’re really limited on the game play.” With six titles in the Tower Stack family, Aruze has introduced two new game families for the Cube-X Vertical, which will be displayed at G2E. The Expander Reel Series of games includes a signature feature that grows the reel array from three rows to nine. Inaugural games include Crazy Coin and Dream Money. Both games use a three-by-five base game in a cash theme. The Expander Reels feature occurs randomly, growing the reels as high as nine rows and adding wild symbols at the same time. The other new game family is the Ancient Wheel series. Each game employs a base slot in the Ultra Stack series with a large virtual bonus wheel on the 42-inch vertical top monitor. The inaugural game, Ancient Wheel Big 5, awards random numbers of free spins along with the Ancient Wheel Bonus, which uses two different wheels to determine the bonus prize or one of four progressives. The outer wheel spins to either a credit award or a jackpot slice, which, if hit, triggers the inner wheel to determine which progressive is won. The Cube-X Innovator, Innovator Deluxe and Cube-X Ultimate cabinets also will be well-represented at G2E. Among the games on the Innovator, which features Aruze’s colorful “Radiant Reels” in the base games under a standard-sized video monitor, are Fire and Thunder and the Infinite 7 series.

The Innovator Deluxe, which features spinning reels under a 42-inch vertical monitor, includes the Burning Wheel series, with base titles Afterburner and Nitro Inferno. Also known as iDeluxe, the cabinet “allows us to create different bonusing options,” says Nunez. “We’re able to utilize a wheel with additional wheel wedges and multipliers for the game.” The Cube-X Ultimate cabinet, which adds s physical wheel to the Innovator Deluxe format, was launched last year in the 999.9 Gold series. According to Nunez, the Ultimate will add a new video game this year, launching the first game at G2E. Then, of course there is the Vertical 80. This is an attention-grabbing platform that basically doubles down on the normal 42-inch presentation of the Cube-X Vertical. The Vertical 80 stacks two 40-inch LCD monitors to create an 80-inch vertical presentation. The game on the platform to be launched at G2E is called Extreme Thunderstorm. The monitors display a three-by-five reel array under a vertical bonus wheel, which is under a multi-level progressive display, which is under a horizontal bonus wheel on top. “It definitely is an impressive display,” says Nunez. Extreme Thunderstorm extends the Thunderstorm brand that has been popular on the standard Cube-X Vertical platform. “With all of our product lines, we’re trying to find ways to drive the average bet up,” comments Nunez. “On the core products, we’re focusing on branching out the Cube-X Vertical 40 product line as well as some merchandising on our core Cube-X video platform. We’re going to enhance a lot of what we’re doing.” Finally, there will be new technology displayed at the G2E show that Aruze is keeping under wraps until show time. But there’s no secret that Aruze will focus on the ETG segment more than previous shows. He says the company even will display proprietary live table games. “ETGs are surging in general, and we’ve had really good success from Shoot to Win, and we’re going to take that success and put it into some other products,” Nunez says. “We’re definitely making a run at it.” In more ways than one. OCTOBER 2017 www.ggbmagazine.com

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Casino Technology

Evolution Gaming produces live casino games for online and land-based casino companies

Blurring the Lines Casino Technology supplies games, systems and the means to link them together

n gaming as elsewhere, the intersection between digital and landbased applications has become increasingly blurred. Looking to the future, casino operators want games for the real world and the virtual world, the casino space and cyberspace, along with the technologies and platforms to seamlessly support them. Bulgariabased Casino Technology is delivering on both fronts. Casino Technology provides a full set of system solutions that erase the borders between land-based and online gaming for an entertainment experience that satisfies in both environments. The company’s unique, patented Big 5 solution combines five sophisticated systems, each named for an icon of the animal kingdom: the Rhino casino management system; the Buffalo universal jackpot system; the Elephant remote game server; the Leopard online gaming platform; and king of them all, the Lion money management system. Casino Technology upgrades system functionalities on a regular basis in keeping with evolving market requirements and customer preferences. The updated Leopard online platform, for instance, has earned rave reviews as a complete solution for online gaming operators. Through the platform, every betting option is available: sports, live betting, virtual sports, casino, live casino streaming, slots, bingo—the works. The backbone of the system, the Rhino casino management system, has also been upgraded with new, improved modules. This year, in addition, the Elephant launched more than 100 HTML5 gaming titles with a convenient mobile user interface. The interactive portfolio of products includes a social gaming portfolio with HTML5 games. “The Big 5 suite makes it possible to have one account and access in a bundled package, delivering everything at one click,” says Casino Technology spokeswoman Silviya Petrova. “It allows triggering the same rewards, bonuses and opportunities to win no matter the place, time or way of playing. The Big 5 enables not only land-based operation but a common jackpot accumulation with an online operation in an omni-channel environment, where accumulations are generated from both land-based and online games. Thus, the players have the chance on tiered and group criteria to win jackpots. “The suite provides the tools all casinos need for both traditional and online businesses,” she says. True to its driving principle—to stay one step ahead of the latest trends—Casino Technology will offer a new experience in the Virtual Reality gaming room at Booth 2050 at G2E. That’s not all. Casino Technology is also preparing the debut of its luxurious Arch Titan cabinet, with two 43-inch curved monitors. The one-of-akind slot machine is impressively sized and exceptionally designed. As the natural successor to Casino Technology’s premium Arch slot machine, the

Global Gaming Business OCTOBER 2017

Arch Titan delivers the same immersive experience thanks to its 43-inch vertical curved top box. The slot machine is offered with the latest multi-level progressive game of Casino Technology, Five Blessings Deluxe. “Arch is a first in the industry,” says Petrova. “It has been upgraded and will be offered with 43-inch horizontal curved LED display, covering the natural vision range. The simplified flush mount 24-inch iDeck, the built-in dynamic RGB lightning and the high-quality sound system only add to the exceptional gaming experience this machine offers.” Yet another product, the new hybrid slot machine, EZ Modulo, will also be launched for the North American market at G2E. The cabinet has already made “a spectacular debut” in the European and Latin American markets, with hundreds of installations, says Petrova. “Fully compliant with customers’ needs and market demand, the contemporary EZ Modulo was developed after profound market research on operator requirements and player preferences, for a convenient game that will bring more excitement,” says Petrova. “With modern design, advanced ergonomics and a built-in, specially designed slot stand, EZ Modulo is a great solution for every casino floor. The cabinet has optional adjustable height and modular design that allows for easy conversion.” The first release is introduced with two 27-inch HD monitors and optional 24-inch or 27-inch HD video topper. EZ Modulo is presented with the latest series of the company’s bestseller Gamopolis Speed King, a new multi-game pack with 60 unique HD games, now ready for release in the North American market. A bundle of games designed just for North American customers will be presented jointly by Casino Technology and its affiliate, Alternative Gaming Solutions/Alto Games. Among them is the unique Hot Rod concept, driven by the exclusive Arch cabinet and wrapped up in the iconic, custom-crafted 1932 Ford Roadster. Other games in the North American bundle include Wild Sunrise, Jungle Fortune and Magic Pearl. Casino Technology has a worldwide presence with installations in more than 50 jurisdictions, offices and distributors in more than 15 countries, and a team of more than 1,500 professionals. While continuing to increase its presence in the company’s core market, it’s also expanding its positions and market share in Asia and Latin America, specifically markets such as Panama and Colombia. “The tides are shifting in the gaming sector,” notes Petrova. “Millennials have their preferences when it comes to gaming. They are excited by more futuristic methods of playing, putting an emphasis on online and mobile gaming. Casino Technology has a rich portfolio, covering all ranges of gaming experience.” —By Marjorie Preston

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Everi

Evolution Gaming produces live casino games for online and land-based casino companies

Building the Empire Everi branches out to new game areas and builds on its core strengths to evolve as a slot manufacturer

veri Holdings, Inc. has been evolving for its entire existence. Two years ago, standout Austin, Texas-based slot supplier Multimedia Games joined with top ATM and payment system supplier Global Cash Access to form Everi Holdings, Inc. Multimedia had several hit games in the market at the time, as well as the product that redefined the nature of the slot tournament, TournEvent. Multimedia had built its reputation on solid slot game math, clever slot themes and a strong R&D team at its Austin headquarters, which provided a steady stream of engineering talent, thanks to the local University of Texas. By 2014, it was generally considered one of the most prime acquisition targets for the big slot-makers. But it was Global Cash Access that made the surprise acquisition, and before long, the solid financial footprint provided by the new company would lead to more growth, and more expansion for the company christened Everi Holdings at a New York Stock Exchange ceremony in summer of 2015. Along with the new corporate identity came leadership changes. In February 2016, Michael D. Rumbolz took over as interim president and CEO for Everi, a post made permanent by the company’s board a few months later. Rumbolz had been an independent consultant to Everi and had previously been the CEO of Cash Systems Inc., an Everi competitor that was acquired by the company in 2008. He previously served as chairman of Casino Data Systems and CEO of 1990s star slot supplier Anchor Gaming. Rumbolz also is a former chairman of the Nevada Gaming Control Board. Other changes followed, each a step in Everi’s evolution. First, Rumbolz brought in veteran slot supply executive Dean Erhlich, formerly a top executive at WMS and Scientific Games, to advance the company’s game development ef52

Global Gaming Business OCTOBER 2017

forts. Under Ehrlich, Everi has expanded new R&D studios in Chicago and Reno, both of which work closely with the team in Austin. To move all that content forward, Ehrlich was brought in as executive vice president and games business leader effective January 1. Ehrlich has had a distinguished career in the slot manufacturing sector. He was senior vice president of global gaming operations for WMS Industries prior to its acquisition by Scientific Games late in 2013. He had also served as executive director of product management and strategy at WMS, where he led the development of that company’s wide-area progressive business. Like Rumbolz, Ehrlich also was an executive at Anchor Gaming, where he led the proprietary games division through that company’s acquisition by IGT. At the end of 2016, Rumbolz called on the technology expertise of another industry veteran, David Lucchese, to create a new business unit for Everi, covering the interactive sector. Lucchese was appointed to a new position within the company, executive vice president, digital and interactive business leader. As head of the new Everi Interactive Division, Lucchese—formerly a top executive at Bally Technologies and another alum of CDS—is charged with moving Everi’s content to digital platforms, which the company has done by porting Everi games to real-money and social sites through a third party, and ultimately, through its own proprietary social casino. If the creation of an interactive division provides a good clue to Rumbolz’s overall roadmap for Everi—the top suppliers in the business all have moved into the interactive space—the company’s lineup of products for G2E 2017 provides an excellent clue to the path forward for the Games Division. Ehrlich’s team is poised to enter every area of the game space it did not previously occupy, while building on the company’s current innovations. Ehrlich says the company has spent 2017 developing an “overall forward-looking product strategy” that improves current products and introduces an entire new generation of Everi game styles. “We want customers to know why we’re doing what we’re doing,” he says. “Our mission is to make great games, make it easier for customers to get them, and deliver them flawlessly.” He adds that G2E will show that the company is “growing up” as a slot supplier. “The company has to evolve a bit to compete with the bigger folks,” he says, citing that its $40 million in annual R&D translates into “a lot of horsepower, a lot of titles, a lot of creative hardware.” The result, he says, is a three-pronged product strategy—“develop new form factors, create original content and implement a broad portfolio of themes.”

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Empire Arrives The form-factor effort comes of age this year, with the completion of a hardware evolution that started with the Core HDX, Platinum HDX and Texan HDX cabinets, alongside premium presentations like the High Rise and Tower 370 cabinets. The next generation of Everi hardware began last year with the Empire MPX cabinet, a radically different form factor designed specifically for Everi’s first big licensed brand, Casablanca. This year, the company has used that cabinet and its 43-inch, infinity-style vertical monitor to open up new possibilities for banked games. Everi is using the Empire MPX, a for-sale cabinet, to launch a new group of video slots, with themes to be shared with the Platinum MPX cabinet that was launched in 2014. Six Empire MPX themes will be launched at G2E, with 11 additional themes to be introduced in 2018. Eventually, all the highest-performing themes on the Core HDX cabinet will be made available for Empire MPX. Highlighting the first group of themes on Empire MPX will be High Voltage Firestorm, a follow-up to the popular High Voltage Blackout, one of the top games from last year’s G2E lineup.

‘Here’s a Story...’ The Empire MPX, in fact, has spawned an entirely new form factor, the Empire 5527. Those numbers indicate the size of the displays—a 27-inch flatscreen LCD topped by a 55-inch portrait-style LCD. The Empire 5527 will be the eventual replacement for Everi’s High Rise cabinet, although the company will continue to support that cabinet for now. The cabinet’s large, flat screen presents a wide range of possibilities for game features, high-definition graphics and multiple progressives. Each theme will be delivered to casinos with a customized merchandising package. Everi is launching the Empire 5527 with what is the first of a remarkable group of licensed brands the company is bringing to G2E: The Brady Bunch. The Brady Bunch, produced by Paramount for ABC from 1969 through 1974—and in syndication ever since—has been woven into American popular culture for four decades. Since securing the license from Paramount to produce a Brady slot, Everi has been mining the five seasons of the series for all the most memorable scenes and situations, and has woven all the best Brady moments into an impressive collection of themed bonus events, complete with footage and audio from the show. (Yes, there’s a “Marcia Marcia Marcia!” bonus.) The slot game also presents a dazzling first look at how the new format will be merchandised to grab attention on the casino floor. Images on the tall monitor are sectioned off to appear much like the stylized graphics during the TV show’s theme song and opening credits, and an extra video topper above the monitor shows the familiar tic-tac-toe portraits of the family from the opening. The games will be placed in pods with dividers showing a collage of images from the show. Meanwhile, Everi also will show the Empire 5527 in an striking pod presentation it calls Empire Arena. It is a six-game pod with the 55-inch monitors touching each other to form one continuous attract display. It will be launched with Discovery Channel’s Shark Week, themed on television’s 54

Global Gaming Business OCTOBER 2017

longest-running program featuring shark-based stories, research and unique insights. In the Empire Arena setup, the underwater theme appears like a bright, animated 3-D aquarium in the middle of the slot floor. “This is a very realistic approach to a shark-themed game, and it’s a lot of fun,” says Ehrlich. “It’s one of our first big executions of a 3-D project, and it leverages the fact that our cabinet can be the tightest pod on the floor.” He notes that while the combination of monitors creates a display that can be seen across the floor, it takes up basically the same footprint as any six-cabinet pod. This setup also will demonstrate the capabilities of Everi’s Nitro system product. Nitro is a server in the center of a bank or pod of games that sends bonus animation, game features, attract images or any other communication across all the adjacent monitors in the group of games. In the Arena setup, the 55-inch monitors, placed edge to edge, combine to form a seamless 360degree continuous display. “I don’t know how anyone is going to miss this on the floor,” says Allison Pope, senior vice president of game development in Austin. “Between the realistic aquarium look and the size of the 55-inch monitors, this is going to be a big eye-catcher.” “With this Nitro technology, we can take our best for-sale games and put them in the base games for this larger product,” says Jim Palermo, Everi’s senior vice president of game strategy and product management. “High Voltage Blackout, one of our best games from last year, is going to be one of the base games for Shark Week. Nitro allows us to plug and play really good base games with this bonusing concept.” According to Ehrlich, after release of The Brady Bunch, the plan is to release one theme per quarter on the Empire 5527 going forward. The Empire Arena will be available with three themes on launch in 2018, with follow-up games to be added in 2019.

Theme Bonanza Back in the Multimedia Games days, the company did very few licensed themes—the company distinguished itself with proprietary brands featuring clever characters and story lines. However, last year’s G2E marked the beginning of a major effort to penetrate the gaming operations market with slot machines licensed with themes from entertainment and pop culture. The Casablanca game, with the nextgeneration cabinet designed for it, was the company’s first major foray into the licensed entertainment theme. It is being followed shortly by another themed video slot, Penn & Teller. Around the same time that game was announced, Everi announced a new licensing agreement with Dreamworks Classics. The Dreamworks license resulted in one of this year’s big hits for Everi—

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and a game that is now spawning an entirely new game group in the highdenomination stepper category—Casper the Friendly Ghost. The Casper game, on the tall Skyline top box, was released in both Class III and Class II versions earlier this year. It is a high-denomination stepper game featuring local-area and wide-area progressives, the WAP in the Class II version resetting at $100,000. “Casper is doing as well as or better than our competition’s high-denomination stepper cabinets,” Ehrlich says. “We know we can put out a high-denomination, licensed product with the math we have done in the past, and have a lot of success with it.” “We’re familiar with the numbers some of our competitors have put out in this category of high-denomination, leased product,” adds Palermo, “and Casper on Skyline is neck-and-neck with the best we’ve seen.” “There is a spot for a classic, elegant licensed product in the stepper category, which I don’t think a lot of people are spending a heck of a lot of time on,” Ehrlich says. “With approved math models we’ve had, and the success we’ve had in stepper and high-denomination, it would be crazy for us to not go out there as quickly as we can with a great brand and use the very successful play mechanics that are already out in the field.” A companion game to Casper is another high-denomination, multi-progressive stepper based on a Dreamworks property, the 1960s comic book character Hot Stuff the Little Devil. (Both Casper and Hot Stuff were featured in the 1960s by Harvey Comics, and appeared together in a 2009 comicbook miniseries.) The Smokin’ Hot Stuff game features symbol multipliers and up to six tiers of progressives. Landing three matching Hot Stuff characters on the reels awards the top jackpot. Smokin’ Hot Stuff is also available on the Skyline top box. Everi is featuring other major new stepper products in both branded games and non-branded games. On the branded side is Singin’ in the Rain, a multiple progressive based on the legendary MGM musical. Designed by Top Shelf Studio, the three-reel stepper with multiplying wild symbols and a free-spin bonus is another game to utilize Everi’s tall Skyline cabinet. Finally, a new Class III wide-area progressive link will utilize Everi’s stepper math and the company’s new Player Classic 3.0 stepper platform in another major licensed theme, this one from deep in the heart of the company’s Texas backyard— Willie Nelson. The music, images and performance videos of the legendary Texas country music entertainer are wrapped around two inaugural high-denomination, three-reel stepper titles, Shotgun Willie and Whiskey River. Nelson’s familiar songs play while the reels spin, and the attract monitor features

both concert video and original video shot at Nelson’s Spicewood, Texas ranch (as it happens, around an hour east of Austin). “Our competitors could never have used this license as well as we could,” says Palermo. “There was a lot of enthusiasm among our staff to build this theme. We’re in Austin, after all, and this theme hits our customer base, which includes a lot of players in Oklahoma.” The game features a top wide-area progressive jackpot resetting at $100,000 for Class III tribal casinos. There is a local-area progressive available for commercial casinos, ahead of a commercial wide-area link in Nevada and New Jersey late in 2018. Everi’s branding bonanza this year does not stop with the stepper games, as the company is launching several major brands in its core video game groups. The $100,000 progressive link on which the Willie Nelson game sits also will host the video slot Buffy the Vampire Slayer on the Empire MPX cabinet. The game utilizes the tall screen of the Empire MPX for an expanding reel feature, with visuals and sounds of the supernatural TV series starring Sarah Michelle Gellar as a young woman called to fight vampires and demons. Rounding out branded video offerings are Smokin’ Hot Stuff Wicked Wheel, on the Tower 370, featuring Hot Stuff the Little Devil interacting with the game and wheel bonuses; Felix the Cat, on the High Rise,

OCTOBER 2017 www.ggbmagazine.com

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featuring a wheel bonus and based on the legendary cartoon character that first appeared in 1919; and Knight Rider, based on the 1980s action show starring David Hasselhoff and a “smart” Pontiac Firebird Trans Am named KITT, which was self-aware through artificial intelligence and got the crime-fighting Michael Knight out of jams. The Knight Rider slot machine, presented in a cabinet styled to look like the KITT car, features a three-by-five video slot with voice-over of KITT, who appears on the screen to activate various wild symbols and bonus features.

Homegrown Brands Everi, of course, arrives at G2E with a complete lineup of its own in-house brands in reels and video, employing the kinds of clever themes and solid program math for which the company has been known since it was Multimedia Games. The new Player Classic 3.0 stepper format hosts Lightning Diamonds, a linked multiple-progressive three-reel slot in high denominations that utilizes game-controlled “Apex N” topper that allows for pay table and progressive messaging on separate monitors. The new cabinet configuration Player Classic Boost will feature four titles at launch in the first quarter of 2018, in both Class III and Class II versions. Everi also will launch a new progressive stepper series called Jackpot Lockdown, with a classic base game called White Hot Diamonds. Also in the stepper lineup is Double Bullseye Jackpot, a five-line reel-spinner with a re-spin feature whenever a bullseye lands in the center of the reels. Reels will re-spin as long as winning combinations keep appearing. In the Core HDX video cabinet, the company will launch Smokin’ Hot Stuff Diamond Blaze, which features the Renegade 3600 sign package represented by three 43-inch curved monitors with game-controlled lighting and sound. Bonus games are played out on giant reels formed by the monitors. On the Empire MPX, new titles include the Dynasty Queen Asian-themed progressive, and on Core HDX, Long Nian, a nine-reel video slot designed for Asian players, which the company says is the first ever to utilize an Asian theme in a nine-reel format. Some of the biggest highlights in Everi video will draw on the company’s popular TournEvent tournament system. The base games on TournEvent have been wildly popular with the product’s fan base, so Everi has adapted the most popular features into in-revenue games. Pop’N Win is a premium linked progressive game with Apex N technology that mimics the main score-boosting feature of TournEvent—touching floating balloons to register credits—in a faux-skill bonus. The bonus re-creates the experience of the TournEvent contest, with the player bashing the spin button and watching for floating balloons. Scores are then translated into bonus awards. “We really wanted to figure out how to take the fun, the energy, the spectacle that is TournEvent, which we do so well, and bring it to an in-revenue player, who is going to have different expectations and different comfort levels,” says Ehrlich. “It’s a single-machine mystery trigger event—one player at a time enters, so they’re not competing against each other. It’s a single player competing against the clock. They spin the reels and pop balloons for points.” The company’s engineers have added one more twist—the bonus takes place to the soundtrack of “Le Freak,” the 1970s disco song by Le Chic. “One of the challenges in bringing TournEvent in-revenue is you don’t have quite as much adrenaline as you have on a full bank-wide group of players,” says Pope. “So we 56

Global Gaming Business OCTOBER 2017

licensed ‘Le Freak’ to get players excited and to build the spectacle for the casino. Once people hear that, they can’t help but watch and see what’s going on.” Another nod to TournEvent is the Money Man Jackpot Wheel multi-wheel video slot on the dualscreen Core HDX cabinet. It is the company’s first bolt-on bonus featuring a mystery Nitro bonus event. The bonus and features are hosted by the Money Man, the familiar TournEvent mascot. The link leverages existing TournEvent 5.0 hardware, and can be placed on TournEvent banks to improve in-revenue operations. One other TournEvent-related game to be shown this year is an out-of-revenue version of Fruit Ninja, the game offered as a pure skill game on TournEvent, with the fruit-slashing bonus presented as simulated skill. Other game highlights include Animal Spirit and Celestial Maidens, both of which feature the company’s Everi Bet 2.0 technology. The groundbreaking technology allows for a different return-to-player (RTP) percentage with different wagers—players who bet more get a higher return. Finally, Everi will display new games for its Texan giant-format cabinet that include Zap, which shoots lightning bolts at the reels to “zap” bonus awards; and Smokin’ Wild Jackpots, a nine-reel video slot with classic “7” symbols.

New Specialties All of the new games will, of course, accompany TournEvent 5.0, the newest generation of the company’s popular automated tournament system, which is fueling contests in new markets like British Columbia in Canada; and demonstrations of the first products from the company’s new interactive division. “We formally established Everi Interactive at the beginning of this year,” explains Lucchese, “with two primary goals. One goal is to expose all the great landbased content of Everi into the interactive channel to our land-based and online customers. To that end, we have been porting games through a third party and making them available through this channel. The Everi games are currently available in social/free-to-play sites worldwide, and also in real-money sites in New Jersey and Europe with more to follow. “We’re pleased with how that’s been going, because we’re now able to respond favorably to a lot of customers doing social casinos or real-money casinos, who call us all the time and ask for Everi content for their interactive needs,” Lucchese says. “Now, we’re able to say yes, and we have a stream of content going to support their interactive needs.” The second goal was to create Everi’s own branded social casino site for pretesting online content prior to being deployed for land-based, and also to evolve TournEvent and TournEvent of Champions slot tournament products. The site’s name is Super Jackpot Slots. “We’re in our initial launch phase of the social casino site right now,” Lucchese says. “Super Jackpot Slots is available for download from the Apple iOS App Store and Google for Android, and can be played on Facebook as well.” The site launched on July 19. In all, there will be more than 90 Everi themes on display at G2E, 70 percent of which will be non-cloned math programs. “We’ve got a much larger variety of content this year than ever before,” says Pope. “We’ve got a nice mix of new innovation and re-use of successful features, as well as games custom-designed for our core and premium cabinets.” “We think this will be our best G2E ever, from either Everi or legacy Multimedia Games,” says Ehrlich. “We’re very excited.”

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Gamblit Gaming The Gamer’s Game Gamblit expands its games designed for players who want something different than the traditional slot experience

lobal Gaming Expo attendees who ventured near Gamblit Gaming’s booth last year may recall the cacophony of petrifying screams and shrieks echoing from the exhibit as the company showcased Into the Dead, its new zombie shootem-up arcade-style game. But the screeches weren’t just coming from the games themselves. A squadron of Gamblit team members outfitted in full zombie makeup and regalia made it their prerogative to frighten as many unsuspecting bystanders as possible. While there surely exists an unwritten G2E protocol which states that bringing the undead onto the show floor is in bad taste, Gamblit isn’t the type of company that binds itself to existing gaming industry parameters. The Glendale, California-based gaming manufacturer has quickly emerged as one of the leading pioneers of a growing sub-genre of the slots universe focused on merging video game themes and integrative concepts with traditional slot play. Gamblit’s goal is to create new and fun wagering experiences on the casino floor for players aged 21 to 45 who may not be enticed by the normal slot machine experience. Seeking a fun way to make a splash at last year’s show, Darion Lowenstein, Gamblit’s chief marketing officer, secured two makeup artists from The Walking Dead, the popular post-apocalyptic zombie television series, and then floated the spectral idea past Eric Meyerhofer, the company’s chief executive officer. “I was in all the way,” says Meyerhofer. “If you’re going to garner the interest of a new target market, you have to go where that interest is, and let’s face it: zombies are in.” But the zombie theme proved far more than just a clever marketing gimmick; it generated significant buzz and foot traffic to the company’s exhibition and game lineup. “The response was amazing,” says Lowenstein. “We had more press, attendee attention and social media activity than ever before, and more than any other booth on the floor. “Aside from the zombies, our games and booth really stood out, and the energy

Global Gaming Business OCTOBER 2017

was incredible. People loved the new types of skill games and wagering versions of familiar hits like Catapult King and Into the Dead. Who doesn’t want to shoot zombies with the chance to win money?” Gamblit’s approach to product design involves licensing content and branding from popular video games, as well as coming up with organic themes. The idea is to give younger players who grew up playing video games on Xbox and Playstation, and eventually mobile devices, a slot offering that has the same level of interactivity, graphics and skill requirements that they grew accustomed to on traditional game consoles. Connecting these two worlds has become Gamblit’s raison d’etre. “I’m able to take all of this known content from the video game world and give consumers a gambling experience with known video games,” says Lowenstein, who was a highly successful video game producer and designer before making the jump into the gaming business. “Gambling is kind of a ‘secret sauce’ layer on top of it.”

Leaps and Bounds Gamblit reached several critical mile markers in 2017 with the pilot launch of its terminals in the properties of several major casino operators. The company’s bread and butter is the Model G social and interactive gaming table, which features a 42-inch touch screen that can be shared by up to four players. This table houses popular titles such as Gamblit Poker and Cannonbeard’s Treasure, which generated significant interest at last year’s show. Model G pilots can be found around Las Vegas at places like Planet Hollywood, the Level Up gaming lounge at the MGM Grand, Caesars Palace, the LINQ and Paris Las Vegas, as well as in Harrah’s locations in Lake Tahoe and southern California. The product was expected to earn full approval from the Nevada Gaming Commission in late September. “The biggest step for us has certainly been launching our Model G multi-player gaming table onto casino floors, from Las Vegas to California to Oklahoma and multiple cruise ships; we’ve launched in a wide variety of markets and have been learning a ton,” explains Lowenstein. These pilots have not only helped to iron out wrinkles in the products themselves, they have allowed

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floors soon. It is expected to be approved in October under the Nevada Gaming Control Board’s New Innovation Beta program, which offers a type of fast-track approval process for new forms of gaming devices. The most notable TriStation title currently is Jetpack Joyride, in which players strap on a virtual bullet-powered jetpack and accomplish missions while avoiding a variety of obstacles. The game boasts more than 350 million downloads since it was first introduced in 2011 for Apple devices, and it currently maintains 14 million monthly active users. Other TriStation titles include Catapult King, Lucky Words, Slice of Cake, Match Evolution, Smoothie Blast and Breakneck. “We’ve significantly increased and diversified our game lineup, with more well-known brands and popular (intellectual property), and have launched our TriStation, new single-player hardware, and our Gamblit Poker LIVE! felt table,” says Lowenstein, adding that these are all “products unparalleled to anything on the traditional casino floor.”

G2E Highlights

Gamblit to quantify the value proposition its games offer to the industry. “We’ve been rapidly iterating the software on the ground and improving player retention and monetization,” says Lowenstein. “We’ve found that after more than 6,000 surveys, we are averaging a player 20 years younger than the current slot player, which is a massive win for the casino industry.” According to the company’s research, 67 percent of its players are younger than 40, while 35 percent are younger than 30. “Our thesis has stayed pretty much the same: we thought we could move the needle younger. If we’re not doing that then we’re really not of any value to the industry,” Meyerhofer says, noting that the demographic data now gives potentially interested casino operators something more tangible to chew on. “The fact that we’re actioning it to the degree that we are will provide a lot of anchor for operators to take a look at it and start thinking about how they are going to make the migration on their floor,” he continues. Not only is Gamblit’s platform lowering the average player age. The company’s research found that its games are generating incremental revenue for operators—meaning they are attracting players who were not engaging in any type of slot play beforehand. “This is bringing new people into gaming that weren’t going to play at all,” Meyerhofer says. As a result of the growing momentum behind Gamblit products, the company was able to secure a fresh round of financing in the form of a $25 million investment in early May. Gamblit also expects to have its TriStation—which features a wide portfolio of games and allows interactive play for as many as three users—onto casino 60

Global Gaming Business OCTOBER 2017

While Gamblit admittedly set the bar high with its 2016 zombie exhibit, Lowenstein insists that that was just the appetizer. This time around, his team is fully reloaded with a fresh arsenal of skillbased concepts that feature licensed video game content from popular brands. One of them, revealed just before press time, is based on the international game show Deal or No Deal. In 2018, the company will release Deal or No Deal Poker on its Model G multi-player table game. “This year we have an incredible lineup that I’m really proud of; there will be over 20 playable skill games in the booth, including some soon-to-beannounced partnerships with massive, worldwide No. 1 brands and smash hit games,” Lowenstein says. Among the new selections will be a game that has had more than 1 billion mobile downloads, and what Lowenstein describes as an “iconic classic hit arcade game” produced by a Japanese publisher. “Our entire company has been working extremely hard to deliver this awesome, innovative portfolio,” he says. These offerings, in combination with the product and publicity momentum the company has built up over the last year, mean that Gamblit’s exhibit will be abuzz with energy and activity once again at this year’s show. “It seems clear to me that this is the direction the industry is heading, and I’m proud to say that I think Gamblit has the strongest lineup and biggest variety of AAA skill games in the industry,” says Lowenstein. “I think anyone who is interested in this new wave of gaming that brings modern-style video games onto the casino floor should come to our booth.” And those who may have been frightened away by the zombies last year can rest assured that they will be safe this time around to visit the Gamblit booth, though attendees probably shouldn’t let themselves get too comfortable. “Don’t worry—we won’t have zombies this year to scare everyone,” Lowenstein emphasizes. “But we’ll have a few other surprises up our sleeves.” —By Aaron Stanley

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GameCo Back to the Future GameCo targets the video game enthusiast with skill games

or Blaine Graboyes, it was a lightbulb moment. The entrepreneur and digital game designer was staging a series of eSports events at casino conference centers. He noticed that attendees—hundreds or thousands of players who clearly loved their games—walked past the slot floor as if it didn’t exist. The phenomenon, of course, was not unnoticed by casino executives. “They explained to me about the challenges with an aging player demographic and declines in slot revenue,” says Graboyes, whose resume includes entertainment projects for DreamWorks, Mattel, Disney, Nickelodeon, the Guggenheim Museum and Yoko Ono. “The big moment for me was learning that 75 percent to 80 percent of gaming revenue comes from slot machines, from a traditional gambler that’s not going to be refreshed.” Graboyes had an idea. “Startups are an idea looking for a problem. I immediately felt I had a solution for a massive existing problem that casinos needed to solve.” He founded GameCo, creator of the first video game gambling product to be approved by regulators in the United States. The company’s VGM gambling platform allows player skill to determine wins and payouts, while maintaining the same economics as slot machines. In short, the New York-based company brings next-gen video-game slots to next-gen players. The suite of games on the GameCo platform may be part of a solution casinos have been waiting for—a way to attract, entertain and engage younger players and turn them into loyal, frequent customers. “There’s a tidal wave of gamers coming onto the scene,” says Graboyes, but so far, casinos have struggled to entice them—in part because they haven’t fully understood or appreciated the new audience. One obstacle has been the widespread misperception of gamers as young do-nothings living in their parents’ basements—the consumer equivalent of Beavis and Butthead. “Gamers are massively underserved as a demographic, and a lot of that has to do with stereotypes,” says Graboyes. He says the average gamer is someone a lot like him: educated, employed, technically astute, with a better-than-average income and a median age of 35. “I played video games in my own parents’ basement,” says Graboyes, now 44, “but I still play today. I want a place to play with a level of ameni-

Global Gaming Business OCTOBER 2017

ties and hospitality that’s really only found at the casino. Wouldn’t it be cool to go a place that treated me like a VIP?” In VGMs, he says, casinos have an opportunity to leverage their expertise in hospitality for a whole new demographic, without forfeiting the existing player base. “Look at what Seth Schorr is doing at the Downtown Grand, bringing eSports into the casino,” says Graboyes. “It didn’t displace traditional slot players, but opened his casino to a new demographic that didn’t have a place to get together otherwise. The pre-existing gamer stereotypes are one of the main things that have slowed down early adoption, but that’s changing now.” He is quick to add that the games don’t appeal only to young men. “One thing that’s really important to our strategy at GameCo is making games for all gamers.” There are three classifications of games that appeal to gamers, he says: • Core games like “Call of Duty” and “Street Fighter,” generally played by a younger male audience. • Casual games along with lines of “Candy Crush” and “Words with Friends,” typically played by older females. • Mid-core games that feature sports and racing; they draw male and female adults across a broad age range. GameCo currently has three GLI-approved games that fit into those categories: Danger Arena, a first-person shooter action game that skews young and male; Pharaoh’s Secret Temple, which attracts mostly women; and the sports game Nothing but Net. So what are gamers looking for in terms of action, payoff and gamesmanship? “They want a high degree of interactivity and engagement and very high-quality graphics, sound and performance,” Graboyes says. “Increasingly, we’re bringing well-known video games and entertainment brands to the casino.” They also want transparency. “The more we share about how the games work, the more the games are embraced by the player,” says Graboyes. “The new games we’re deploying will show the odds for winning on the pay table. In a skill-based game a player is impacting the result, and we want to have as much clarity as possible on exactly how players’ skills are leading to their payout.” The suite of games is up and running at resorts in Atlantic City, Connecticut, North Carolina, the Caribbean and Chile, says Graboyes. “We

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have upcoming installations in Florida, was kind of, what can I put in front of Oklahoma, California and cruise lines, them that engages people who are here and are currently making application in anyway?” jurisdictions including Canada, Nevada, GameCo VGMs are not premium Ohio and Michigan” and tribal markets slots, “and I know I won’t get the same like Arizona and New Mexico. performance I will from a leased game,” “Internationally we’re working on says Downey. “For me, it’s more about partnerships in the U.K., the Netherlands who’s playing rather than how much rev… We’re looking forward to making apenue I can generate out of them. I’m getplication in Macau and Asia.” GameCo ting three times the amount of non-rated participated in the Australasian Gaming play on these games than as a traditional Expo in Sydney in August. Each of these slot machine. That says to me, yes, in jurisdictions is asking the same question, fact I am getting these folks. And I have he says: “How can we ‘future-proof’ the some older traditional slot players that industry so in five, 10 or 20 years we still are playing them as well.” have a large player base?” On weekends, Downey says, it’s not GameCo is now developing VGM uncommon to see groups of young games under license from major game deadults standing around a GameCo game velopers and entertainment IP companies and taking turns. such as Paramount’s “Mission Impossible” “We’re performing relatively well and “Ferris Bueller” brands, and “Terminow, which has given me the ability to nator 2: Judgment Day” from Studiorun experiments like this,” he adds. “You Canal S.A.S. Also coming this year are need to be looking at who’s playing: is it games featuring superstar DJ Steve Aoki somebody you’re capturing now, or —Blaine Graboyes, CEO, GameCo, Inc. and a partnership with Namco, creator of somebody new you’re introducing into “Soulcaliber II,” the popular weaponthe mix? That’s what I’ve hung my hat based video fighting game. on with these games.” “This is the same fighting game people are playing on their Xbox and Downey recently reread an article about the advent of skill-based gamPC,” says Graboyes. “Now they’ll be able to play it inside the casino.” ing and the sink-or-swim proposition facing casinos whose bread-and-butWhile GameCo’s VGMs are single-player Class III games, in the future ter gambler was swiftly graying. the company plans to release a tournament controller that “networks and syn“It said the traditional clients were dying off, and everything needed to chronizes individual VGMs to allow for competitive multi-player experiences, change because none of the younger generations were playing traditional similar to eSports tournaments.” A prototype of the tournament controller slot machines or table games. will be on view at G2E. “The article was written in 1982,” he says with a laugh. “I’m not saying In the early 2000s, as director of slot operations at Resorts Atlantic City, we don’t have to change how we operate and incorporate these things, but Chris Downey “saw our database quite literally dying off.” In December we’re not trying to blow up the entire slot floor either.” 2016, Downey, who is now vice president of casino operations at the TropiGraboyes agrees. “I don’t think slots and tables going anywhere,” he cana Casino & Resort, introduced nine GameCeo gaming positions at the says, “but I do see casino floors evolving, and some will convert a portion of Boardwalk property, with three triple-unit carousels of Danger Arena. The their floor to appeal to a younger demographic as more products come games were slow to take off and lost money at first. Over time, they broke available. Because of digital technologies in general and the pace of innovaeven and then started to make a profit. tion in the consumer sector, we’re seeing operators move more quickly to Downey, like Graboyes, grew up on video games and still plays them. “I bring these products to the floor. kind of understand the mentality of these gamer folks,” he says. “I know “The machines on the floor are performing extremely well and continue they’re not going to play typical slot machines, and there’s still a void in the to see improvement game over game in terms of win per unit,” he says. casino of people in their 20s to mid-30s. “The thing I’m most proud of is that in exit interviews, 84 percent of play“Large groups of them come to our bars and nightclubs and sit in our ers said they would recommend our VGMs to their friends.” smoking areas, but I don’t get any gaming revenue out of them. So for me it By Marjorie Preston

“The more we share about how the games work, the more the games are embraced by the player. The new games we’re deploying will show the odds for winning on the pay table. In a skill-based game a player is impacting the result, and we want to have as much clarity as possible on exactly how players’ skills are leading to their payout.”

OCTOBER 2017 www.ggbmagazine.com

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Incredible Technologies

Evolution Gaming produces live casino games for online and land-based casino companies

Ramping Up Incredible Technologies uses proven game development to grow as a slot supplier

early a decade ago, Incredible Technologies, the Chicago-area manufacturer that is the largest U.S. manufacturer of coin-operated amusement games, moved into the business of building casino slot ma-

chines. The owners of the company—producer of the legendary tavern game Golden Tee Golf—said at the time they were going to take it slow, establish a niche and hopefully place a few games in casinos. In a comparative blink of the eye, that bar has been raised higher than anyone thought in 2012, the first year IT exhibited at Global Gaming Expo. As IT arrives this year at what is only its fifth G2E, the talk is not about getting a few placements. It’s about slot product that competes with anything from the top suppliers in the industry. “We’ve taken the company from what basically was a startup on the gaming side to one that can compete with the biggest names in the industry,” says Daniel Schrementi, vice president of gaming sales and marketing for Incredible Technologies. “That’s been our mission.” By any measure, Incredible Technologies’ rate of maturation as a slot manufacturer has been, well, incredible. From the start, the company’s game developers and engineers—who, after three decades, knew a thing or two about producing entertaining games—took a methodical, results-first approach to their game development. Games were tested and re-tested in the field, and only after they had proven themselves to be earners were they brought before the industry at large trade events like G2E. Along the way, the company made all the right moves from an R&D perspective, its executives and product managers keeping close track of the types of games, game features and product styles that were resonating with players. Those efforts guided a remarkably fast ramp-up of the company’s slot-development prowess. Its developers were quick studies, and concentrated on the games that were earning the highest returns for operators, then matching their effective program math to new form factors. In 2014, the company introduced a new, state-of-the-art core cabinet, the Infinity U23. The premium Infinity Skybox followed the next year, and that was closely followed by the Infinity Super Sky Wheel and Super Skybox, with four 55-inch screens, edge to edge, combining for bonus events fed from a controller to what essentially functions as a 123-

Global Gaming Business OCTOBER 2017

inch display. IT has not slowed down this year. “There’s a ton going on,” Schrementi says. “Last year was a record year for the company, and we’re on pace this year to be 100 percent ahead of last year. Growth has been our foremost focus since G2E ended last year. It hasn’t stopped since that day.”

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The V55 This year has centered on perfecting the next generation of the company’s hardware, the Infinity V55. The new cabinet, set for a G2E launch, is a new core-game, for-sale cabinet, but with premium features making it as versatile as anything out in casinos today. The heart of the Infinity V55 is its 55-inch, flat 4K vertical full-touch LCD monitor. While Infinity Super Skybox and Super Sky Wheel each feature a 55-inch flat monitor above a base Infinity U23 core video slot, the V55 puts the entire game on the big monitor, making it the industry’s largest screen on a core cabinet. The cabinet fits on the same base as the Infinity U23—a standard 28inch base. “Video slots were founded on dual-screen cabinets,” says Schrementi. “At some point, people put two screens on there to replicate the top glass and a bottom. But now, the newer cabinets are coming out, and to compete with the market, a lot of companies are going to vertical form factors on the base, on a core for-sale cabinet. Some have curved them, some haven’t. Our MO was to say, let’s do what we did with the Skybox—let’s give the biggest window we can, and use the best monitor we can possibly find. “This size screen on a base game has only been used on a jumbo. So, we think we’re going to send some ripples throughout the industry. We’re saying, there are no rules to what you can do, so we’re going to make the screen as big as we can, but workable.” “And there doesn’t need to be a gimmick behind it,” adds Caitlin Harte, director of product marketing for Incredible Technologies. “It doesn’t need to curve five different ways. You can show great content on a big, beautiful screen.” “This is really a core cabinet that has a huge main monitor using all the real estate we possibly can to show game features, to show what we’re really good at, which is creating compelling content,” Schrementi says. “We’re using this huge 4K monitor that’s right there in front of your face—there’s no ‘Look Up!’ to the huge monitor.

“It will knock your socks off when you see it.” The Infinity V55 makes its debut with four new core games, in two separate game families. The games were operational in three test markets as of August, “so by the time G2E rolls around, we will definitely have proven performance on the four launch titles we have,” Schrementi says. The launch titles have been developed according to IT’s normal winning formula—repeating the best features of the company’s most popular games in new formats and game styles. “It’s something our owners believe in,” says Schrementi. “Everything we sell has got to be proven and tested. We don’t want to bring anything to the show that could possibly be a bad product.” “Our strategy all along has been that if a title proves itself on our core cabinet, we upgrade it along the way,” adds Harte. “We had Crazy Money, Crazy Money 2, Crazy Money Deluxe, Crazy Money for Sky Wheel. It’s kind of our bread-and-butter brand. Additionally, we had a lot of success with the game Fired Up when we launched our Infinity U23. We upgraded it to Heat ‘Em Up, on our Skybox cabinet, which is out-performing even Crazy Money Deluxe right now. “We decided to leverage those two player-favorite brands and upgrade them to new versions with the launch of the V55.” The inaugural games for the Infinity V55 will not disappoint fans of Incredible Technology games. In the Crazy Money genre—Crazy Money was IT’s first hit slot game, featuring the interactive “Money Catch” bonus—is Crazy Money Gold, part of the “Gold Bank” game family. The complementary title to this release is called Rays of Egypt. Crazy Money Gold has an expanding reel feature—randomly, the reel set doubles in rows. On Rays of Egypt, huge stacked symbols utilize the full length of the 55-inch monitor. Heat ‘Em Up Power Wheel is part of the Power Wheel family. It adds a bonus wheel to Heat ‘Em Up, while preserving what made that game popular in the first place—the patented “Sky Reels” feature that provides an additional six-by-four reel array to the display, along with additional pay lines;

The heart of the Infinity V55 is its 55-inch, flat 4K vertical full-touch LCD monitor.

OCTOBER 2017 www.ggbmagazine.com

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One highlight will be Celestial Goddesses, which uses the Super Skybox format to masterful effect with the “Solar Jackpots” multiple progressive display, with a giant, flaming wheel extending across four 55-inch monitors to house the bonus event. and the “Power Up” feature, which allows players to advance to four different bonus wheels. The companion game to Heat ‘Em Up Power Wheel is Fate of the 8, which attaches the Crazy Money bonus game mechanic to an Asian-themed game. “Fate of the 8 capitalizes on the popularity of Asian games with progressives, and the number 8,” says Harte. “Both games have big wheels overhead, and most of the bonus features come from that wheel.” “Asian games have become so popular in the marketplace that we just said we’ve got to take a crack at this, and showcase our art and our math in this unique way,” says Schrementi. Fate of the 8 cleverly translates the Money Catch bonus into the “Koi Catch Bonus.” Instead of flying cash for the player to grab, koi fish swim around the monitor. “You’re catching gigantic koi fish on the screen instead of cash,” Schrementi says. Harte adds that player testing of both Crazy Money Gold and Fate of the 8 has shown the player-entertainment value of the 55-inch touchscreen monitor. “The surface is all touch-screen—the whole screen,” she says. “In the Money Catch or Koi Catch bonus, you can stand up, you can touch the top of the screen if you want, you can play with your friend and have four hands going at once. We’ve seen in the test markets that’s actually more prevalent than we thought—you can play with your friends. People are leaning over to the person next to them during these bonus events.” In addition to showcasing the new games on the V55, IT will display games in all of its other cabinets and form factors. One highlight will be Celestial Goddesses, which uses the Super Skybox format to masterful effect with the “Solar Jackpots” multiple progressive display, with a giant, flaming wheel extending across four 55-inch monitors to house the bonus event. The company will display four titles in the Super Sky Wheel format, along with additional titles for the Skybox cabinet. Additionally, IT will launch new games for its line of high-limit slots. “This has been a nice niche for us,” says Schrementi. “The high-limit room has been an underserved market by the competition, because it is a small market. But we’ve had a nice entrance into it. We offer hand-made math models that are customized and configurations that are customized for the high-limit room. And we now offer it in our U23 core games and in our Skybox.” 66

Global Gaming Business OCTOBER 2017

Building the Future The rapid growth of Incredible Technologies will get a boost soon, as the company establishes a new Las Vegas office. The new facility, in the Las Vegas suburb of Summerlin, will house a design studio and support staff. Schrementi says the Vegas-based studio will “put more fuel in the tank for our products.” It will be a development-only operation. “Our manufacturing headquarters will always be here in the Chicagoland area, but the Vegas studio is more to diversify our product offering in what we’re building, and to leverage additional talent. There is a good talent pool out there.” Meanwhile, IT continues to expand its markets in North America, with licenses currently in 25 U.S jurisdictions—the latest in Pennsylvania, where approval was imminent at press time. Only Missouri and Washington state will remain on the company’s U.S. radar, and Schrementi says the next frontier will be Ontario and other provinces in Canada. And the true growth, Schrementi says, remains evident in the increasing popularity of the company’s games with players, and with game performance that measures up to the top slot-makers in the business. “We’re very proud of the fact that in the recent Eilers surveys and other industry surveys, we’ve been No. 1 or No. 2 in product performance for over 12 months now,” he says. “This tiny little company in the Chicago suburbs is competing against the likes of Aristocrat, IGT, Scientific Games and others in what really matters at the end of the day—product performance.”

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IGT

Evolution Gaming produces live casino games for online and land-based casino companies

High Technology, Big Returns IGT fills its extensive range of new cabinets and form factors with game features fueled by groundbreaking technology

nternational Game Technology’s history has been one of groundbreaking innovation, from the invention of video poker to themed slots, bonus games, TITO and more. Last year, the company had its R&D chops on display at G2E in the form of new cabinets that gave its game developers the horsepower to churn out one groundbreaking game mechanic after another. CrystalCore. CrystalDual+ Stepper. CrystalCurve. CrystalCurve Ultra. S3000 XL. AXXIS 3D. Now, the CrystalCurve TRUE 4D. The list goes on. That last cabinet is sure to house one of the highlights of this year’s Global Gaming Expo, the first games in the TRUE 4D series, which features mid-air haptic and gesture recognition technologies. Another mind-blowing new technology is PowerSight, in which players can select objects on a screen by looking at them. Dallas Orchard, chief product officer, gaming for IGT, says the innovative hardware and new technologies are being put to use to add depth to the company’s entire product library. Orchard says 2017 has been about “building the sustainable depth from a content perspective, into each one of those hardware segments.” This year, IGT commercialized the CrystalDual+ Stepper cabinet, the CrystalCurve cabinet and the CrystalCurve Ultra cabinet, previewed at last year’s G2E and recently launched at MGM Grand in Las Vegas. The company’s new large-format games, on the S3000 XL and Wheel of Fortune Megatower platforms, are also now out in the market. “Everything that was displayed at last year’s G2E is now in the market, with the exception of 4D, which will, again, be a large showcase for us at this year’s G2E,” says Orchard. “So, ‘Let’s Play’ (the company’s theme for G2E) is really about demonstrating what we consider to be an exceptionally deep library of great content in each aspect of our new hardware portfolio.” “Coming out of last year’s G2E, Sphinx 4D was the most-anticipated product,” Orchard says. “That will go to market in November, and the beautiful thing for IGT is we’ll be accepting orders on that product at the trade show, and then rolling them out in the fourth quarter.” The 4D game group will certainly be a highlight of IGT’s collection at this year’s G2E, but Orchard notes that the company has moved this

Global Gaming Business OCTOBER 2017

The CrystalCurve TRUE 4D cabinet features a 50-inch curved portrait ultra-HD top display and 32-inch, landscape, ultra-HD lower display. year to improve and augment content in each of its many game groups, whether for-sale core video, video poker or a renewed emphasis on mechanical steppers both in the core S3000 and new large-format S3000 XL series. The company has strengthened its expertise in these areas with key management additions. Kurt Larsen, who was creative director at IGT from 2004 through 2012, was brought back to head IGT’s efforts in the premium space as vice president, premium studios, North America gaming and interactive.

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“With all of the technology we’re bringing into 4D, and the CrystalCurve ULTRA, we want to really make sure the games offer value for the player. And we believe we’re on the right track there.” —Dallas Orchard, Chief Product Officer, Gaming, IGT

In his previous tenure at IGT, he oversaw development and release of titles including Sex and the City, Ghostbusters, The Hangover, Wheel of Fortune Triple Spin and other hits. More recently, he was vice president of game design and studio head at Aristocrat Technologies. “Having Kurt rejoin our business was a great shot in the arm,” says Orchard. “He was one of the main men at IGT during its heyday, and now he’s back managing all of our premium studios.” Also this year, the company brought back Anthony Baerlocher as vice president of innovation and mechanical reels. Baerlocher was one of IGT’s top game designers for more than 18 years beginning in 1992, and was part of the most important product developments leading to IGT’s dominance of the slot market. He also spent three and a half years at WMS Gaming as director of advanced game design. He is now heads a team injecting new life into IGT’s stepper slot lines. “Getting guys like Kurt Larsen and Anthony Baerlocher back into our business really shows that we’re on the right track,” Orchard says. “IGT has some of the best game designers in the industry, and I think the polish and the attention to detail that Kurt brings to the premium product portfolio is second to none.”

The Ds Have It If anything has been sure to draw G2E attendees to IGT’s booth the past two years, it has been the TRUE 3D series of slots. First introduced by legacy GTECH in the game Sphinx 3D, the glasses-free 3-D technology provides the most realistic 3-D effect ever used for a slot machine. Games like Zuma 3D, Plants vs. Zombies 3D and Return of the Sphinx 3D formed one of IGT’s fastest-growing game segments even as the company’s engineers were perfecting the follow-up series, the improved “4D” group. The CrystalCurve TRUE 4D cabinet features a 50-inch curved portrait ultra-HD top display and 32-inch, landscape, ultra-HD lower display. It includes a digital player panel with dual bash buttons and player-adjustable settings for sound, mid-air haptics, chair rumble and intensity of the game’s TRUE 3D technology. The first game in the new group, Sphinx 4D, features gesture control and mid-air haptic technology—you gesture or point, and the game reacts— empowering the player to interact with a slot machine in ways never before

tried. As the 3-D bonus journey continues through the Sphinx, the player reaches out and, so to speak, touches the game. Players reach out to drag orbs to the center of the CrystalCurve 4D monitor to trigger progressives, wilds, multipliers and free games. There are Easter eggs like changing the monitor scene from day to night by drawing a circle in the air, or drawing a heart to have it appear on the screen. “There are lots of Easter eggs in these games,” comments Michael Brennan, IGT’s senior director of product lifecycle & market management. “We want players to always find something they haven’t seen before when they play.” The second 4D title, to be launched at G2E, explores the technology further in Ghostbusters 4D. Like the first game, it is loaded with special features, in this case bringing to life the most famous scenes of the 1984 comedy starring Bill Murray and Dan Aykroyd. Perhaps the best is the “Ballroom Buster Bonus,” which re-creates the memorable scene of the Ghostbusters’ first job, clearing a hotel ballroom of the vile “Slimer” ghost. The player points to where he thinks Slimer is hiding, and aims the proton-pack stream to nab him or reveal credit awards. The new TRUE 4D games don’t mean IGT has slowed development on the popular TRUE 3D series on the AXXIS 3D cabinet. This year, the company expands that series with two new brands—one licensing a film and the other a classic, homegrown IGT brand. In a natural pick for the technology, IGT is launching James Cameron’s Avatar 3D, a game that re-creates memorable scenes from Cameron’s 2009 blockbuster—not coincidentally, a movie as memorable for its 3-D animation as for the storyline of the fictional planet Pandora. That planet is meticulously re-created for the slot game, using actual 3D footage from the film for cut scenes. Mountain banshees fly to the reels to add wild symbols. One bonus offers the perspective of riding a banshee through the air into various Pandora locations. For all the flash, Brennan stresses that IGT’s developers made sure a strong base game with proven math is at the core of the new Avatar game. “These games satisfy the gambler’s instinct,” he says, noting that the freegame feature offers the player a choice of spin and multiplier combinations offering several levels of volatility. Another big launch for the TRUE 3D product group is a new version of one of IGT’s most famous classic reel-spinners—Red, White & Blue TRUE 3D Reels, a high-denomination three-reeler offering the option of singleline, three-line or five-line operation. The base game is the same as the traditional Red, White & Blue, except that high-paying symbols are popping out of the screen and red, white and blue stars appear in the spots between the reels randomly to open a fourth reel, which awards wild symbols, credit awards and a trigger to a secondscreen bonus. In the bonus, the player fires 3-D rockets, which explode to reveal wilds, wilds with multipliers and free spins. OCTOBER 2017 www.ggbmagazine.com

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IGT is launching James Cameron’s Avatar 3D, a game that re-creates memorable scenes from Cameron’s 2009 blockbuster In all, the extra features make the classic stepper-style game come alive, and the base game, according to Brennan, uses the same program math as the classic game, the only difference being that the all-blank win has been removed to pay for the bonus features. “We received tremendous feedback at last year’s G2E to our 4D technology,” says Rachel Barber, chief technology officer for IGT. “Clearly, the glassesfree 3-D, the gesture recognition and the mid-air haptics, not to mention the 4K ultra-HD screens, present an overall package that’s unprecedented, in terms of the player experience.” She adds the mid-air haptic technology is “not only new to gaming, but it’s being launched by and large ahead of the consumer electronics space as well. “So, for players, this is truly something new and different, and I think that it results in a very fun experience that also demonstrates the operator’s commitment to innovation.”

Premium Power The TRUE 3D and TRUE 4D product groups head what will be a typically remarkable group of premium products that includes new versions of classic proprietary brands, extensions of popular licensed brands and totally new entertainment brands. The G2E premium lineup spans the new cabinets launched in the past year—the CrystalCurve ULTRA cabinet, launched with the standout titles The Ellen DeGeneres Show: Sharing the Love and soon-to-launch The Voice; the CrystalDual+ Stepper cabinet with titles such as Top Dollar Premium and Megabucks Super Stacks Respin; the S3000 XL cabinet with IGT’s classic Pinball game; and the CrystalCurve cabinet with marquee titles such as Betty White Video Slots and Harvey-Davidson Video Slots. One of the highlights in the premium group is a new entry in the group of games based on the Sex and the City TV series. The new Sex and the City game employs PowerSight technology, which actually allows the player to trigger various game features by fixing a gaze on one portion of the screen. “Sex and the City is a legacy brand that is still tremendously successful for IGT,” says Orchard. “So, we’ve gone back to the drawing board to create what we consider to be another great Sex and the City product, using PowerSight technology, which allows the player to interact with the game. You can use your eyes to manipulate activity on the main screen.”

Global Gaming Business OCTOBER 2017

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Players will be able to gaze at the screen to select characters and symbols in the main game and to select Stepping Up icons in picking games in the bonus. The mechanical reel-spinning stepper segment has Other premium-game highlights include Blake always been an area of dominance for IGT, but Shelton, a slot based on the career of the country this year, the return of Baerlocher coincides with a music star. Also on the CrystalCurve ULTRA, the reel-spinning renaissance of sorts. game features music and concert footage of Shelton, In addition to the launch of the large-format plus a random prize pool with a unique top award— Megatower stepper, IGT will release a flood of at any time, players around the country on the slot new titles in its new core stepper platform, the can win a mystery award of an acoustic guitar signed S3000—launched three years ago as a modernized by Shelton. replacement for the former workhorse S2000 plat“With all of the technology we’re bringing into form that cemented IGT’s dominance of the seg4D, and the CrystalCurve ULTRA, we want to really ment. make sure the games offer value for the player,” says Since returning last spring, Baerlocher has Orchard. “And we believe we’re on the right track been working with longtime pro game producers there.” like Dennis Meade—creator of some of the comOther new branded games include The Goonies, pany’s most iconic S2000 titles and a main force based on the 1985 adventure comedy film starring in the development of the S3000 series—to furSean Astin and Josh Brolin; and The Voice, the game ther improve the stepper segment. based on the popular performance show that was pre“Steppers have always been a strength of IGT; viewed last year but perfected and released this fall. they helped build the company back in the ’90s,” In addition to the big branded licenses, Crystalsays Baerlocher. “Dennis and I worked together Curve and CrystalCurve ULTRA will host a complete back then, when it was pretty much high-denomilineup of proprietary multi-level progressive slots. nation, three-reel games. The segment evolved —Anthony Baerlocher, Vice President Cash Climb, from the company’s Australia studio, into the lower-denomination titles—four reels, of Innovation and Mechanical Reels, IGT features an 11-level progressive. They are scaling profive reels, bonus reels. I left IGT at the end of gressives, with five bet levels—the higher the bet, the 2010, and came back this year with the emphasis higher the progressive award levels. The progressives are to focus on steppers and take them to the next level.” won through a free-spin event. Five or more pots of gold start the spins, with Part of Baerlocher’s mission is to meet increased competition in the stepper three spins at each level of progressive offering chances to collect more pots of segment from all of the other major slot-makers. “We want to maintain our leadgold to trigger higher progressive levels. ership by focusing on what our customers want,” he says, “so you’ll see a big emThe game also features IGT’s SyncStation feature, in which lighting effects phasis at G2E on our high-denomination products. are synced across a bank of games. “Most of our competitors focus in one or two areas, whereas we have the abilOther featured multi-level progressive games include Fortune Gong, bringing ity to reach out into all areas of the stepper segment, as well as going to Class II the Asian theme to the genre; and a new version of the classic IGT video slot Fort markets and offering a really unique tournament product.” Knox. “It was really exciting when Anthony came back on board,” comments The reboot of Fort Knox, one of IGT’s strongest titles from the early 2000s, Meade. “We realized in 2012 that we had a replacement market sitting right there features base games Diamond Vault, Twin Win and Majestic Gorilla. The bonus (for the S2000), and we started working on the new cabinet. What’s really excitjourney through the gold vault is updated, but with the elements of the classic ing about some of Anthony’s new philosophies is that we’re going go back to just game preserved. really basic good math. Everything doesn’t have to have a feature on it; we can “In all, you’ll see four proprietary multi-level progressives on our Crystaltake those great math models and go to different configurations.” Curve premium cabinet,” says Orchard, “which have gone through all of our Highlights in the stepper segment this year include new versions of classic focus-testing and test bank procedures. We believe this lineup will be the most three-reelers like Sizzling 7s and Triple Strike, as well as new takes on those classuccessful multi-level progressives we’ve ever built.” sics, like Pinball, with a Double Diamond base game and a skill-style bonus afOne other high-level progressive will help launch another new format, the fording baby boomers the opportunity to use those old pinball skills. reel-spinning S3000 XL large-format cabinet. Wheel of Fortune Megatower, live There also will be an addition to the lower-denomination stepper line with now in casinos, places the legendary wheel game in a giant format for the first the Red Hot Cantina series, with base games Red Hot Enchiladas, Red Hot time. Tamales and Red Hot Chimichangas. It is a penny multi-level progressive with “We’ll also display our large-format Megabucks product, and we’ll show a progressives won through a “Sombrero Wheel” with slices awarding credit deep library of core titles on our S3000 XL,” Orchard says. “We’ve kept a lot of amounts or one of four progressives—“Fresco,” “Caliente,” “Picante” and the top the similarities that players in our focus tests have told us that they love about the award, “Hot-Cha-Cha.” S3000 series when we designed the large-format version, to make sure it has that “This is designed to appeal to the casual player, but it will offer a good gamfamiliar look and feel.”

“Steppers have always been a strength of IGT; they helped build the company back in the ’90s. I left IGT at the end of 2010, and came back this year with the emphasis to focus on steppers and take them to the next level.”

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IGT’s Cardless Connect

ble as well,” says Baerlocher. Of course, any talk of new steppers includes Top Dollar, the strongest title in the former Barcrest brand, retained when the brand was sold to Scientific Games. The company will display Top Dollar Premium, with a digital version of the classic top-box bonus with awards represented as piles of cash. The other stepper group that will be emphasized at G2E is a new group of Class II reel-spinners, featuring a new Red Hot Haywire feature. The games include 2X3X4X5X Irish Shamrocks; Duck Bill$, a three-reel, five-line entry; and Wild Bill, a modification of the classic Wild Cherry math. IGT also will demonstrate its updated Spin Ferno tournament product. The synchronized S3000 tournament product launched a few years ago, and is being offered with traditional top-performing titles. “We’re taking Spin Ferno in a little different direction, but it’s still going to be Spin Ferno, with the fun tournament mechanic,” Meade says.

Core Video, Core Poker While premium titles and new stepper concepts will certainly turn heads, the IGT display at G2E will reveal a renewed emphasis on improving the company’s core video product groups, both in video slots and the dominant video poker segment. The core video slot segment this year has been divided into specific segments denoting the appeal of each game—some games fall into more than one category. Core categories include Pure Core Games, with easy-to-understand features and classic game mechanics; Jackpot Games, which feature prominently displayed progressives; All-Star Evolutions, which are new versions of proven brands; Waterfall Games, which are goal-oriented and offer players the ability to collect icons or objects toward higher prizes; and Innovation Games, which include fresh, new-to-market features or functionalities. “You’ll see a a big push into different segments inside of our for-sale portfolio, to allow us to innovate with new and exciting propositions,” Orchard says, “but also to mitigate potential risk for both the casinos and IGT, by bringing forward a lot of the ‘All-Star Evolutions.’ This year, our entire for-sale library will be banked by segment, because we believe we have the library, the depth and the proven performance to carry banks of games, to really continue that core video turnaround, which has been IGT’s No. 1 priority in the last 12 months.” IGT has loaded each game segment with new titles for G2E. “We try to populate the roadmap to provide inventory in each segment,” comments Bren74

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nan. “This gives a rationale for sale of additional banks, since the games are designed to work together. For customers, it gives them the confidence to get deeper into our library, as the support is there.” Pure Core games include titles such as Cleopatra, Mistress of Egypt and King of Macedonia. Highlights among Jackpot games include Golden Gecko, Wild Fury and Star Rise. Innovation games include Game of Arrows, with an entertaining, interactive bonus; and Wheel Shot, which features a display of four bonus wheels viewed from the edge. Orchard comments that all of IGT’s new form factors will figure prominently in the revival of the Core Games segment. “The CrystalCurve cabinet will be displayed in all its glory inside of our for-sale library,” he says. “What was originally held back for just premium content is now making its way into the for-sale library. We’re in the marketplace with Wild Fury and Star Rise, both graduates of our test bank process, and both performing very well in the market. We’re going to follow that up with a wide array of products and content on the CrystalCurve for-sale box.” In addition to core video, IGT is moving to maintain its dominance of the video poker market, where the company still maintains more than 90 percent market share. IGT is bringing a group of innovative new video poker games to the show, including many that offer wheel bonuses and extra awards for certain hands. IGT has solved the pitfall that befalls suppliers when they try to bring new features to video poker enthusiasts who are suspicious of anything different in their favorite games. Instead of “dumbing down” pay schedules to pay for bonus features, the new specialty video poker games offer bonuses fueled by extra wagers—leaving the pay tables as-is. Double Big Wheel Poker, a new multi-hand game, features concentric virtual wheels on some cards, which trigger spins to add multipliers to all hands. In Stack the Deck, for a seven-credit bet, any dealt three-of-a-kind, four-of-a-kind, full house or four-to-the-royal hand adds up to five additional cards to the deck for the draw. The game also features a 2,000-credit payout for the “Baby Royal,” a 9-K straight flush. Face Card Frenzy is a Double Double Bonus variation which, for a 10credit per-hand bet, makes any face card a kicker for the bonus four-of-a-kind hands. Moving Multiplier Poker awards a multiplier for winning hands every 11 hands on average, for an eight-credit per-hand bet. Color Max Royals pays 2,000 credits for royal straights that are the same-colored suit, for a 10-credit wager.

New Horizons IGT’s booth at the big show will, of course, feature much more than just the traditional games. The company will display the next generation of its virtual reality product, Siege VR, as well as a group of innovative skill-based games, such as the mobile-style Lucky’s Quest and the complete range of games in the Reel Edge series, led by Texas Tea Pinball. Mobile innovations that enhance the land-based casino environment also will be prevalent, with IGT’s Cardless Connect and PlaySpot mobile wagering solutions already deployed with major casino operators. But more than anything, G2E for IGT is all about the games. “We’ve been focusing on evolving our product offerings through technology innovation, across all of our business segments,” says Barber. “We push the envelope not only by offering many different form factors, but by creating innovative solutions designed to wow our players.”

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Konami Gaming, Inc. The Concerto Continues Konami loads its current form factors with innovative content while launching another new cabinet concept

onami Gaming began this particular concerto a year ago. For G2E 2016, the Las Vegas-based slot-maker expanded what is now called the Concerto Collection of slot cabinets and formats with several dramatic new form factors. The Concerto core cabinet, introduced in 2015, was hitting its stride as the follow-up to still other innovative legacy cabinets in the Podium series. In 2016, the state-of-the-art Concerto became a collection, with the launch of Concerto Crescent, Concerto Stack, Concerto Slant and the multi-game Concerto SeleXion—the fruits of a R&D efforts boosted by the new 200,000-square-foot Las Vegas campus opened a year earlier. The Crescent’s 43-inch curved screen, the 43-inch flat monitor of the Stack and the relaxed-angle dual 27-inch screens of the Slant collectively created a completely new canvas for Konami’s game developers, who have spent the ensuing year building up a content library for all the new form factors. The cabinet buildup continues this year with yet another new form factor for the Concerto family—a largeformat cabinet housing a single, imposing 65-inch high-resolution monitor, called Concerto Opus. At G2E 2017, Konami presents the mountain of new content it has developed for the innovative new formats. Some of the content is transferable to legacy platforms such as KP3 in the Podium format; other content has been developed specifically for the newer KP3+, or to exploit the benefits of one of the Concerto form factors. Much has been homegrown by the Las Vegas R&D staff; some new game styles draw on the legacy of the slotmaker’s parent company, video-game giant Konami Holdings Corporation of Japan. In all, Konami arrives at G2E with 97 total themes, including KP3+ and KP3 videos slots, new multi-game

Global Gaming Business OCTOBER 2017

mixes for SeleXion, and upwards of 20 different types of progressives. “We’ve focused on expanding the game library that goes into the Concerto cabinets,” says Steve Walther, senior director of marketing and product management for Konami. “Last year, we premiered Concerto Crescent and Concerto Stack at G2E. Now, those are all on the market with some of our launch titles, and doing extremely well. The past year has been focused on expanding and building the content that will go on the various platforms.” Walther notes that the new single-screen Concerto Crescent and Stack products present “a very different development environment, a very different display environment than the two-screen environment we had with the Concerto.” He says the company worked to “create a new market” with the new formats. “And with that new palette, we are able to do some new things, be a little bit more adventurous, and create a new identity for Konami Gaming on the gaming floor—familiar, but with a new twist.” That progress is already under way with standouts from last year’s inaugural group of games for the new formats, now entering the marketplace. One of the most successful has been Sparkling Roses, a 15-reel game with mystery multipliers, free games and the Xtra Reward feature, which returns bonus wild multipliers. Walther says the 15-reel format allows for a wider range of features. “A standard five-reel slot machine is good; it makes the bread and butter, but every so often you branch out and do something a little bit different,” he says. “One of our success stories is Sparkling Roses. In the 15-reel format, every single space is an independent spinning reel. “Sparkling Roses captured a little bit of magic because it had the right combination of symbols and multipliers and reel spins that were different enough—but familiar

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“Konami is coming up with reasons for people to want to bet in a higher volume to get higher rewards. This is part of our legacy and our heritage.” —Steve Walther, Senior Director of Marketing and Product Management, Konami Gaming

enough—and it also has those multipliers that people love. It’s a big game for us so far this calendar year.” Another popular game group that stands out on the Concerto upright and Concerto Slant is Cai Lai Si Ji (basic translation: “win through all seasons”), a stand-alone progressive series with three base themes— Wealth of Dynasty, Power of Riches and Winning Animals. The games, in the Ultra Reels Prime series, are colorful Asian themes using a mystery picking bonus in which players choose from blossoms to match one of four progressive jackpots. “It’s our first stand-alone progressive starting at $10,000,” says Walther. Other new winners include the Fortune Streams series, a KP3+ follow-up to the KP3 progressive series Jackpot Streams; and Smash Smash Festival, a non-traditional progressive link in which the prize pool progresses, instead of the amounts of the jackpots themselves. The Concerto Stack and Crescent formats were launched with companion games Dragon Fury and Pharaoh’s Fury, which use the tall monitors to display a 7-8-8-8-7 reel array. Available in 80- or 120-line configuration, the games feature a free-spin round in which the higher-paying picture symbols are more prevalent with a higher number of bonus trigger symbols. Finally, just before G2E, Konami will release the latest game in its Castlevania series of games based on Konami’s vampire-fighting video game series—Castlevania Valiant Guardian. The Castlevania franchise will be one of many to be expanded by Konami this year.

Building the Library At G2E, this year’s hits will be accompanied by a host of new games, new game styles and new formats. Konami will expand some game groups and launch completely new game styles in an avalanche of new content for its growing collection of innovative hardware. Multiplier’s Ridge kicks off the Ultra Reels 972 Ways series. The reel array in this format is 3-3-3-6-6. With every five-of-a-kind win, a mountain at the bottom of the screen explodes for a multiplier up to 10X. Other standouts include Octo-Blast, a follow-up to the game Chili Chili Fire, with a unique mystery feature that appears in several Konami games this year—the “Fade Away Feature.” Randomly in both free games and primary game spins (more frequently on free games), the main Octopus character will squirt ink on the reels and wipe out all the lower-paying poker symbols, leaving only higher-paying symbols for a re-evaluation of the win. The tall vertical screens of the new formats are bein put to full use in Konami’s new video offerings. The new single-screen formats, including the large-format Concerto cabinet, will be exploited in games like China Shores Great Stacks, which translates the popular Konami theme into an oversized 78

Global Gaming Business OCTOBER 2017

five-by-six reel array—six rows of symbols per reel. “A 30-line game has been doubled to form a 60-line game, placing two game fields together,” Walther explains. “When you trigger the free games you can either get to choose your credit prize range, a large number of free games with awards multiplied by two, a mix of free games and multipliers with extra symbols added, a low number of free games with high multipliers, or a medium amount of free games with only the picture symbols remaining, with multipliers. “There are a lot of choices there for the players, and we want the player to be able to find the choice that best meets what their desire of game play might be in the feature. This is in the market now, and early numbers are quite promising.” Also in the China Shores family is China Shores Boosted Riches. “The more you bet, the bigger your prizes will be,” Walther says. “When you trigger the free games, the more yin-yang symbols you get, the higher you climb up the financial ladder at the top, with fixed pays up to 1,000 credits.” Another brand extension designed for the single-screen formats is Lotus Land Deluxe Wild, which features free games, a wild re-spin feature and a multiplier feature. A follow-up to the popular Konami brand Treasure Falls is the Riches Drop series, on the vertical-monitor Concerto machines. The base game features a lucky tree that will drop coins and shake prizes from the tree. Games in this series are Riches Drop Plop Plop Peach and Riches Drop Lucky Firecracker, the latter game offering the Fade Away Feature. “We’re trying to combine all these exciting elements into a few basic games,” says Walther. Other highlights include Mammoth Power, a new KP3+ game featuring free spins and multipliers; and the debut of a completely new game mechanic, called Strike Zone. Strike Zone could be called the next generation of Xtra Rewards, in that it is a new way to entice larger bets through larger rewards. The Strike Zone is a special area within the reel set in which special features like wild symbols, multipliers and mini-bonus wheel spins are activated. The higher the bet, the larger the Strike Zone portion of the screen, starting with two reel positions at minimum bet and rising to a three-by-four box in the center of the primary game with a maximum bet in the first pairing of Strike Zone games, Celestial Sun Riches and Celestial Moon Riches. In the other inaugural game pairing, Star Watch Magma and Star Watch Fire, the Strike Zone increases reel by reel as the wager rises. “The point is that the more you invest in making your Strike Zone bigger, the more chances you have of special features happening,” Walther says. “In Celestial Riches, when you get a wild symbol inside the Strike Zone, it has a multiplier associated with it. If you get a wheel symbol in the Strike Zone, you get a spin of the wheel. But if you don’t have the Strike Zone big

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Crystal Cyclone, an arcadestyle ball-drop game

enough, you don’t get the special feature or trigger. So, you’re going to want to bet the whole Strike Zone, because you don’t want to miss one of these special features. That would be like hitting a royal flush with less than the maximum bet—you don’t want to be that guy! “Konami is coming up with reasons for people to want to bet in a higher volume to get higher rewards. This is part of our legacy and our heritage. When we brought out Xtra Rewards, people had the option to bet more to get a chance to win something extra. Hence, the name. Here, the bigger you make the Strike Zone, the better your chance to get something extra out of the game. We’re building upon that legacy with an entirely new twist.”

Progressive Power The Riches Drop and Star Watch game groups are both in a category that is growing for Konami, multiple-progressive slots. As many suppliers, Konami is responding to customer demand for new types of multiple-progressive slot games, launching new progressive slots for the Concerto family as well as progressives for legacy KP3 machines and formats including Podium and Podium Goliath. One highlight of the progressive group is the clever “Purrfect Pirates Series” of games. “It has something I think is going to make everybody smile—cats dressed up like pirates plundering the Seven Seas, and you get to share in the booty the kitties collect,” says Walther. Purrfect Pirates is a multiple-progressive game offering a player-selec80

Global Gaming Business OCTOBER 2017

table denomination, ranging from penny to $1. “Credit prizes scale according to how much you bet per line,” Walther says. “The higher you bet, the bigger the bonus prizes, and the better your chance at winning a progressive.” The progressives are won through two separate bonus events, both in Purrfect Pirates and its companion, Purrty Pirates. (Female cats, a pink pirate ship.) Other progressives include two new games in the Castlevania series, Labyrinth of Love and Ring of the Heavens. “The characters are different, but the games are true to the Castlevania band,” Walther says. Most of the new progressives present unique ways to win multiple jackpots. For instance, in Egyptian Wheel Bonus, four progressive levels are slices on a jackpot wheel which, according to Walther, offers players true odds on the spins. Other progressive games include Luxury Jackpots, a four-level mystery linked progressive with a top award starting at $10,000; Dragon Emblem Jackpots, with a 7-8-8-8-7 reel array and a simple three-level, symbol-driven jackpot; and Lucky O’Leary Jackpots, which applies the same format to a leprechaun-themed game. New titles and game extensions will be placed in the multi-game Concerto SeleXion, and of course, in the new Concerto Opus, which will stand 99 inches tall including the candle. Konami also will demonstrate its expanding online business segment at G2E. The company has been releasing content in the New Jersey formoney online gaming market, expanding its content to social gaming outlets, and has a licensing partnership with PlayStudios. Other G2E highlights for Konami include its multi-station products previewed last year, the sleek Crystal Cyclone arcade-style ball-drop game and the Fortune Cup mechanical horse-race game. Fortune Cup will be live at the Venetian casino and MGM Grand Las Vegas, so attendees can experience the first global installs while they’re at the show.

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The company also will bring a complete lineup of products for the VLT market, designed with program math customized to the rules of each VLT jurisdiction. And finally, the company will display games for the players Walther calls the “non-traditional gamer.” “These games are not just for millennials,” Walther says, referring to Frogger Get Hoppin’—with primary skill game play based on the legendary arcade game—and Beat Square, another concept transplanted from the arcade division of parent Konami Holdings Corporation. “We’re no longer looking at skill-based games as just a millennial product segment,” Walther says. “We’re looking at it as non-traditional gamer. There might be a 46-year-old man who still plays Halo

at home. We might be able to attract those audiences to play a gaming machine that is different than your traditional five-reel slot machine. They may still incorporate luck to a degree, but we want them to be different than a traditional slot machine.” Beat Square, a music-timing game Walther aptly describes as a sort of “musical whack-a-mole,” has its roots in a game called JuBeat, big in Japanese arcades. “We’re leveraging that technology and putting a gaming engine into it,” he says. The company is even launching a skill tournamentbased Beat Square. There will be a Beat Square tournament at Konami’s G2E booth. Walther sums up this year’s Konami G2E lineup: “What makes these games uniquely enjoyable for players goes beyond an initial novelty appeal,” he says. “It’s how the individual play mechanics, mathematics, bonus events and entertainment delivery styles work together in harmony for continued excitement and engagement over time. “Whether it’s a new product category or a new game theme release, our focus is to create satisfying game play experiences that bring new levels of excitement to the gaming floor.”

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Merkur Gaming Great Expectations New cabinets and game formats highlight Merkur’s 100-machine G2E display

erkur Gaming is back at G2E with the latest version of its Avantgarde Trio, Merkurstar and Evostar cabinets. The Lübbecke, Germany-based firm will display some 100 individual machines at this year’s show. The units, primarily in single-game formats but with a selection of multi-game options, will demonstrate the many strides Merkur has made in its product line. It’s a fitting way to mark the 60th year of the Gauselmann Group, Germany’s world-famous games-makers and Merkur parent company. “Merkur Gaming has great expectations for G2E as the top-line brand company for the Americas,” says Charles Hiten, CEO of Merkur Gaming Americas. “We lead the line in the Americas and internationally in what will be a proud presentation of the entire group’s range of gaming solutions and capabilities.” Merkur’s goal, he says, is to produce “exciting and enthralling, top-ofthe-line game themes that will meet and exceed the expectations of players from across the entire spectrum of casino floor attractions.” The Avantgarde Trio, with its distinctive contours and superior ergonomics, sets high standards of integrated design. The quality gaming machine cabinet features three gloss-finish, 27-inch full HD wide-screen monitors; the high-definition third screen is the ideal canvas for video content and/or embedded jackpot signage. Merkurstar stands out with its contemporary look and feel. Its highquality cabinet, with two gloss-finish, 24-inch full HD wide-screen monitors, is designed with player comfort in mind, and is compatible with all major online systems. But this year, says Hiten, the star of the show is Evostar, the latest addition to the Merkur Gaming cabinet portfolio. As its name suggests, Evostar has a shared heritage with the successful Avantgarde, Avantgarde Trio and Merkurstar models. It’s a unique hybrid and stellar example of next-generation engineering, with a service-friendly upright and a slant-top player position for the ultimate in player comfort. Evostar features a built-in USB port that allows users to charge their mobile devices as they play, free of charge. With vivid color effects, resonant acoustics, high-performance multigame-enabled technology platforms and powerful, resonant acoustics, these products embody German innovation and engineering at their best. Merkur cabinets display game suites grouped into Random Lines, Asian themes, Fruits & Sevens and Egyptian and Space Age themes, as well as new standout games making their G2E debut this year. “Without a doubt, there will be games to suit every taste and much more besides: from A to Z, Achilla to Zentaurus, and a world of gaming

Global Gaming Business OCTOBER 2017

entertainment in between. For Merkur Gaming, the focus at G2E is definitely on games,” says Hiten. The Merkur Gaming booth also features displays from across the entire Gauselmann Group: Cash-handling experts GeWeTe will show a range of innovations from across their wide range of solutions. Sports betting maestros Cashpoint, the betting professionals, will demonstrate the best in in sports betting entertainment. Based in Hamburg, Germany, edict egaming Gmbh is the online gaming arm of the Gauselmann Group, a market leader and true trendsetter holding multiple licenses in various markets. It will present the edict Game Solution, by which which Merkur games are marketed internationally for online casinos and betting operators. In keeping with its commitment to social responsibility, Merkur will host in-booth demonstrations of its cutting-edge Face Check technology. This contactless admission control system is based on biometric facial features, and is currently the only system that allows youth protection without the need to present identification. With decades of experience in development and production, the family-owned Gauselmann Group has earned a reputation for reliable partnerships with national and international casino operators. The group has demonstrated a nimble response to shifting legal and social conditions, individual client preferences and local market requirements. Its gaming portfolio is multi-faceted and country-specific, and proves the slogan of Merkur Gaming: “We speak gaming.” —By Marjorie Preston

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Novomatic Americas

Evolution Gaming produces live casino games for online and land-based casino companies

American Momentum Novomatic continues its penetration of North American gaming markets with a wide array of new products

ovomatic will be bringing more a slightly “down under” feel to the Global Gaming Expo in 2017, as the company inches closer toward finalizing a majority shareholder acquisition in Ainsworth Game Technology, the Australian gaming equipment manufacturer. “We’ll have a combined booth here at G2E,” says Rick Meitzler, president of North America sales for Novomatic. “Coincidentally, we had our booths next to each other in 2016, and with our stock purchase pending completion, we have a consolidated showing of both companies in one space for 2017.” But while the deal is expected to close in early 2018, show attendees shouldn’t be expecting too many eye-popping changes right off the bat, as Novomatic generally prefers to maintain the individuality of its acquisitions. “We have two strong, individual brands and will maintain those brands for the near future,” explains Meitzler. “So in 2018, we will thoughtfully make adjustments and changes that allow for the smartest strategic growth in the U.S. market.” Regardless, there will be plenty to see at the Novomatic exhibit this year, including a plethora of cabinet innovations, electronic table games, premium-branded slot products and linked progressive jackpot solutions. With locations in more than 50 countries and sales operations in more 70, Austria’s Novomatic Group has long been the top manufacturer in Europe, but is a relatively new entrant in to the U.S. market, having first set up shop in 2012. The company’s overarching objective for this year’s show is to continue the driving the momentum that it has built on the North American continent over the last 12 months. “This year we’ve grown exponentially to support our development and sales,” says Meitzler, adding that the focus for the coming year will be “to continue to grow our market with strategic innovation that fills a need and provides new options at a fair and interesting price.” Meitzler stresses that the Austriabased Novomatic, whose North American headquarters is in suburban Chicago, brings a unique value proposi-

Global Gaming Business OCTOBER 2017

tion to U.S. customers because of its dual expertise in both manufacturing and operating gaming equipment. “We are manufacturers, but also we are operators,” Meitzler says. “We understand long-term technology investment. We are a self-contained producer of all aspects of our games and systems—from boards and cables to cabinets. This allows us to bypass the middle man and pass those savings directly on to our customers.” Meitzler also emphasizes that this institutional knowledge makes Novomatic a better overall manufacturer, and a cost-conscious partner that intimately understands the decision-making that goes into a long-term casino investment. As a European-based manufacturer that is in the process of bringing an Australian influence to its product line, Novomatic games offer a more unique entertainment experience from purely Americanized games. “We are global operators and innovators,” says Kathleen McLaughlin, who heads marketing for the company’s North America division. “We can take those experiences and translate them into highly refined products and entertainment experiences that provide significant long-term investment value for our

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U.S. customers.” At this year’s show, Novomatic aims to act on the positive feedback it generated last year, particularly with its Reel Tournaments, strong content and new cabinet innovations. In addition, the company has carved a niche for itself in the North America market with its video gaming terminal offerings, which were well-received by attendees last year. VGTs—or video lottery terminals—are machines that are placed in more local, non-casino locations such as bars, cafes and gas stations. “One of our core competencies is our expertise and comprehensive understanding of route operations,” says Meitzler. “Our global intelligence in route or street operations and game development are a true competitive advantage.” The company has more than 230,000 such games placed around the world. As VGTs remain a relatively untapped market in the U.S., Meitzler expects the interest in his VGT-compatible cabinets to grow at this year’s G2E. Novomatic’s V.I.P. Lounge cabinets have become popular in the VGT market because of the 34 diverse and entertaining game titles that players can choose from. With VGT legalization on the table in a proposed gambling expansion package in Pennsylvania, Novomatic is seeing an uptick in demand for compatible machines. If the Keystone State were to pass this form of gaming, other states will be lining up to follow suit, Meitzler reckons, because it is a program that is fairly easy to implement and serves as an additional tax revenue generator. “It opens up a new market for us,” he says. “It benefits all manufacturers. There are many manufacturers that would not like to see Pennsylvania go. They may not all be obvious about the desire for it to open. We, however, have great understanding and success in route operations, so we are a more outspoken supporter.” As a relative newcomer to the North American market, Novomatic has sought to capture market share by being highly customer-driven with regard to the products it rolls out at G2E each year. “We have listened to our customers and developed more entertaining, higher return-to-player games and have had great success with games like Asian Fortunes. Based upon that success, we continue to develop suites of games with that same Asian Fortunes experience and flavor,” says McLaughlin. The company will also be rolling out its first-ever licensed game title this year. It will rebirth From Dusk till Dawn, the classic 1996 Quentin Tarantino film that featured George Clooney, Salma Hayek and Danny Trejo. The film will be re-cast in the form of a slot machine that has proved quite popular the company’s customer research. McLaughlin says she expects the game to be Novomatic’s

blockbuster showcase piece of the show because of its presentation, uniqueness and broad appeal. “This is not an obvious license. However, the player feedback has been amazing, and the game play experience is something that our research has clearly told us that players are excited about. It crosses a lot of demographic boundaries and it works,” she says. “This will be a game to play and be seen playing.” In continuing the popular trend of bringing celebrities to the show floor to help promote new products, Trejo— who also starred in popular 1990s films Heat, Anaconda and Con Air—will stop by the Novomatic booth to mingle with attendees. The company is also putting the finishing touches on the placement of its Electronic Table Games Stadium on the floor of a name-brand casino operator, which should be a watershed moment for the company. McLaughlin says momentum is expected to continue growing in the Americas for this product line, as it has generated strong player demand despite remaining somewhat “under the radar.” “The ETG interest has been a great surprise, and has taken off,” McLaughlin says. “We are a major player in the ETG market segment internationally, so it is a natural progression and business for us in the U.S. market.” Novomatic’s Octavian slot management system has also proven to be a hit with players and operators since last year, as it provides a scalable alternative to current systems and is an “amazing piece of slot management technology that is clean, simple to use and provides an amazing, cost-friendly tool for operators that don’t want to spend big numbers to maximize revenue,” according to McLaughlin. “Smaller organizations are pursuing our systems aggressively due to the impressive functionality and agile approach we have taken.” Other Novomatic products that G2E attendees should be on the lookout for include the new V.I.P. Lounge Cabinet—which Meitzler says is one of the most in-demand cabinets in the U.S. market. “We have been overwhelmed with demand for the V.I.P Lounge cabinet. It’s clear players like our new cabinet design,” he says. “Where it has launched, it typically goes to No. 1 or No. 2 in that location.” Novomatic will be rolling out several other new additions to its game portfolio at the show, including JackPOW!, JackPOP!, Goddess Rising, Red Dream and new additions to its Fortunes series of math-style games. Matt Ward, vice president of game development, and his diverse international design teams have been focused on creating great content, and this show will demonstrate the impressive result. At the end of the day, attendees should pay a visit to the Novomatic exhibit to check out new product offerings that bring a European-meetsDown-Under feel and unique price point to the North America market. “I hope customers visit stand 1259 to get a glimpse of our future,” says Meitzler. “We thrive on being an innovative company and bringing a unique perspective to everything we touch. We’re looking forward to 2018 and the relationship that allows two great companies to show the world their best work. “We’re known globally as innovative and different, and we are going to keep leveraging that to bring strong choices for casino customers and incredibly entertaining games for players.” —By Aaron Stanley OCTOBER 2017 www.ggbmagazine.com

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Scientific Games

Evolution Gaming produces live casino games for online and land-based casino companies

TwinStar Rising Scientific Games launches new games in its newest cabinet family, while loading all its TwinStar formats with new content

wo years ago, Scientific Games staged its first Global Gaming Expo following the mergers that brought together three major suppliers—Bally Technologies, Shuffle Master and WMS Gaming—to create the company’s current identity as a complete, end-to-end gaming supplier. The first order of business following the merger was to combine the best technologies of the former companies and their three major gaming brands—Bally, WMS and Shuffle Master—into a single product platform going forward. The result was Argos, Scientific Games’ current core platform, capable of running content from former Bally, Shuffle Master or WMS teams. Next would come a common cabinet to house games of the former competitors—TwinStar, first displayed at G2E 2015, hosting all brands on the same form factor. At last year’s G2E, Scientific Games expanded the TwinStar family of cabinets with the launch of TwinStar J43, a twist on the curved vertical monitor first invented by the former Bally Technologies in its Alpha 2 Pro Wave. The J43 features a 43-inch portrait monitor that curves toward the player at the bottom. Also last year, the company launched the TwinStar 3RM stepper cabinet, with mechanical reel-spinning games in the TwinStar format. The first games, low-denomination reel-spinners, are in the market now. All three of the inaugural TwinStar cabinets are in the for-sale category. This year, the company will add three new premium lease cabinets to the TwinStar family, along with still more new content. “For the last year and a half, most of our efforts have been on launching the original TwinStar and producing content for that and the new TwinStar formats,” says Greg Colella, vice president of product marketing for Scientific Games. “The original TwinStar dual-screen cabinet, the first to offer both Bally and WMS content, has done well, but the J43 premium-style cabinet has done particularly well. Bally has had successful product in this general style, starting with the V32 (which pioneered the vertical portrait-style monitor) and leading to, most successfully, the Wave. We wanted to follow with another curved display.” The TwinStar 3RM stepper was launched early this year, completing the group in the field now. “This year, we’re trying to build on the story with new content for the dual-screen TwinStar, the TwinStar 3RM and the J43,” says Colella. “We’re not launching any new for-sale hardware this year; we’re deliberately making a pause from that, because we’ve been flooding the market with all sorts of new hardware for our cus-

Global Gaming Business OCTOBER 2017

tomers. So this year, it’s all about deepening the library of all of our TwinStar platforms.”

Building the Library Colella says the company is certainly not abandoning its legacy platforms—there will, for instance, be new content shown at G2E for the Blade s32 and the Alpha Pro Wave. “We still have a pipeline of games for the Wave, which by far has been the biggest success of anything in the Pro Series,” says Colella. “We’ll be introducing new products for that, but we are transitioning, and most of our efforts are now focused around the TwinStar product line.” At the head of the lineup of new TwinStar titles are new games for Lock It Link, the popular game series featuring a bonus that locks symbols in place and respins for larger awards. “Lock It Link has been a standout for us on the TwinStar dual-screen video,” Colella says. “Our original Diamonds and Night Life games have done very well for our customers.” At G2E, the company will launch two new games for the Lock It Link group—Cats Hats and More Bats and Eureka Reel Blast. “These will plug into existing Lock It Link games as a way to extend the franchise,” Colella says. Developed by the company’s Australia design studio, the game series has seen significant success in that country. It will debut for the North American market at G2E. Colella says Scientific Games’ other key development in the TwinStar line is the launch of a new range of mid- and high-denomination video slots. “This has been an area customers have always asked about—‘Hey, do you have anything new for this space?’—and generally speaking, year after year we’ve said no,” Colella says. “This year, we made it a focus to introduce these games. Most of these games have roots back in Australia.” The first four titles in this product range are Golden Pharaoh, Jungle

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Scientific Games will launch a wealth of new premium titles in every existing format, plus new formats being debuted at the show.

The new Quick Hit game returns to the roots of that strong brand—it started as a high-denomination stepper in the 1990s, launching the progressive game mechanic that is still its most popular feature, the ladder of progressive levels awarded according to the number of Quick Hit symbols on the reels. The company has released at least one new Quick Hit title every year since that initial introduction. Colella comments that Scientific Games’ engineers took extra care when designing the TwinStar 3RM—care in making sure the old games are familiar to demanding stepper players. “When we first started designing the cabinet, we had to ask, ‘Does Blazing 7s belong on a cabinet that flashy?’” Colella says. The team solved the problem by creating a different top for TwinStar 3RM—a round top to mimic the old Pro Series S6000 cabinet. “We tried to make it look like a traditional slot machine,” he says.

Wild, Rise of the Emperor and Fu 888. “Golden Pharaoh and Rise of the Emperor come from the Australia market as well,” says Colella. “They’ve had a fairly robust dollar video slot market for some time. We’re using several of the titles that have done well there as the launch titles for North America. Jungle Wild is an old WMS title that has done well in high denominations over the years, so we thought that, as well as Fu 888, would be good for this series.” Other highlights on the TwinStar cabinet include the companion games Dragons of Avalon and Eternal Thrones, from High 5 Games. Both are 1,024-ways-to-win video slots based on a successful High 5 math model, with a three-level progressive jackpot added. And finally, Scientific Games will launch a new video poker series on the TwinStar, in multi-denomination configurations with standard video poker games in single-hand and in multi-hand versions ranging from three-hand to 100-hand games. All of the popular pay tables and video poker variations are available. “We’ve had poker in the past on the (WMS) CPU3 platform,” says Colella. “This product moves it over to Argos. Scientific Games is one of the biggest companies in the industry, and we want to make sure we are what we tell everybody we are—a full-service provider. We could provide, if you wanted, everything you need for a casino, end to end. So, poker obviously needs to be part of that.”

Reimagining the Stepper The TwinStar 3RM mechanical reel-spinning platform gives new life to a category once dominated by the former Bally. According to Colella, the company took a careful approach to introducing a new stepper cabinet to traditional players. The 3RM was launched with two low-denomination games, 88 Fortunes and Fu Dao Le. In the past, Bally stepper slots were typically launched in high denominations—quarters, dollars and up. Colella says they weren’t always successful because the high-denom player “is fairly set in his ways.” Behind video poker players, he says, the most particular players on the floor are three-reel, singleline, high-denomination players. “You cannot rock that person’s world, and it’s tough to introduce new product to that player,” he says. “We stuck with low-denom because that player is more open to seeing new game ideas.” Fu Dao Le and 88 Fortunes on the 3RM have been strong products for Scientific Games, so the company is ready for the next step—more content, higher denominations. Because the low-denomination games are successful, says Colella, “there’s not as much pressure for those high-denom games to have to work immediately. We can give them some time to mature naturally and try to get players to transition over.” While the first two games have been joined by Quick Hit Super Wheel, Wow Black & White and Wow Triple Blazing 7s in rounding out the first low-denomination stepper group, the high-denomination stepper group will be introduced by using “some of the granddaddies of the business,” says Colella—new versions of the classic Blazing 7s, Bonus Times, Black & White, Black & White 5X Pay, Double Jackpot Triple Blazing 7s and Quick Hit 5X 10X. 88

Global Gaming Business OCTOBER 2017

J43 Unleashed Of all the form factors launched by Scientific Games last year, none has done better than the J43 cabinet. “We’ve had success with all three of the TwinStar cabinets so far, but this one has been the standout,” says Colella. “Dancing Drums, Heidi’s Bierhaus and Quick Hit Ultra Pays on this platform have all been dynamite for us.” This year, Scientific Games extends the J43 library with several new titles, starting with companion games Zeus Unleashed and Kronos Unleashed. “These are follow-ups to Zeus and Kronos games we did on the TwinStar, which have been standouts on that platform,” Colella explains. “One of the big twists in these games is the Lightning Respin feature. In the initial games, players looked for Kronos or a lightning bolt that would continue the round. Here, you have all sorts of other enhancements to the reels.” Also new on the J43 are two new entries for the company’s Wonder Woman slot series. Called Bullets and Bracelets and Golden Lasso, the games were placed on the J43 because the first Wonder Woman games were really successful on the Wave cabinet. Other new J43 games include Rising Guardian, Rising Panda and Double Blessings, a follow-up to inaugural J43 hit Dancing Drums. The new game links with Dancing Drums, and includes the familiar expanding reels feature. For the legacy platforms, the company will display an upgrade of the Alpha 2 Pro Wave format. “Last quarter was the first in which the Wave was not our top-selling product,” says Colella. “It has been our workhorse; we’ve sold a lot of these cabinets. What I’m trying to do for the customer is extend the life of the investment they’ve made as long as possible. To do that, we’re

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putting the Argos platform inside.” The revamped Wave will host the Super Wheel Dragon, Las Vegas and Quick Hit Pro games. Colella says customers will not be charged for the new hardware, only the software. The WMS Blade s32 video cabinet will host Treasure Ship Bonus, a new game in the Monsters and Mermaids series; and a new version of Iron Man. The latter was introduced in Australia, and was one of the rare occasions that a licensed brand has succeeded in that market. Finally, on the Barcrest for-sale platform, which features traditional stepper games equipped with simple, arcade-style top-box bonuses, Scientific Games will launch Double Easy Money, which places a 2X multiplier along with the familiar stacks of money in the top box bonus. Another new Barcrest game is Déjà Vu Diamonds, which employs a gimmick borrowed from the Illinois VLT market that enables the player to win thousands of dollars without stopping to fill out a W-2G form. (Look for the W-2G with a “buster” symbol through it.) After a large win—all $1,199 or lower—the player will be given the chance to buy additional spins. Because the player is buying the additional spins, they count as different plays.

Premium Plays As usual, Scientific Games will shine in the premium space at this year’s G2E. “This is the space where we make really unique games,” Colella says. Some of the best games from last year’s show will be released to casinos by G2E or shortly thereafter. These include Seinfeld, Willy Wonka Dream Factory and The Simpsons on the Gamescape cabinet. Scientific Games will launch a wealth of new premium titles in every existing format, plus new formats being debuted at the show. Heading up the highlights list of upcoming releases is Monopoly Millionaire, the next game on the Pro Wave 360 platform. The 360, launched two years ago with the game Dragon Spin, followed up with Cirque du Soleil’s Kooza and augmented this year with Willy Wonka’s Dream Factory, uses a continuous, 360-degree overhead monitor for bonus rounds on individual Pro Wave units in a circular carousel. The other high-profile premium introduction is on the TwinStar V24/43 cabinet—National Lampoon’s Animal House, bringing the iconic 1978 frat movie to the slot screen or the first time. Other highlights in the premium game group include Monsters Return, a new game featuring the famous monsters of Universal Pictures—Boris Karloff’s Frankenstein and Mummy, Bela Lugosi’s Dracula, Lon Chaney Jr.’s Wolfman. On the Gamefield xD cabinet, the game features a hold-and-respin feature, wheel bonus and five-level progressive with a top wide-area progressive prize. Also on Gamefield xD is a new game based on the original Star Trek TV series, called Star Trek: The Final Frontier. The new game features wild reels, mystery stacking symbols, “Tribble Respins,” free games and a battle picking bonus. In the high-denomination wide-area progressive space, the company will feature Michael Jackson Legend and Cirque Kooza, both with progressive 90

Global Gaming Business OCTOBER 2017

wheels on the Blade mechanical stepper. These will be joined by the second Cirque du Soleil title, Cirque Amaluna, based on a traveling show the Cirque troupe stages in Europe. It features a seven-level progressive on an Alpha Pro Wave with a digital wheel. Other new premium games include Hot Shot Inferno, a new twist on the brand that has been popular for around a dozen years. Another multi-level progressive with a digital wheel feature, this one reprises the “mini-games” of the Hot Shot series that spin miniature reels for bonus awards. Finally, the company is launching several other new games in the Monopoly franchise, including Monopoly Revolution on the innovative multi-player PRIZM cabinet. Monopoly Revolution is the first slot game on the PRIZM format, which has been focused on electronic table games content. PRIZM is a four-player table, each player with an electronic wagering station. Initial games on the format were Lightning Launch Roulette and a poker variation. “But we also have a lot of slot content on the PRIZM,” Colella says. “They’ve done some terrific work on it. Each player has a three-reel set, and the game does what you would expect it to do—you get your token and move it around the classic game board, collecting money for properties.” Colella notes that other manufacturers are using formats similar to PRIZM to launch experimental skill games. “They’re trying to sell them on a long-term perspective. I’m saying we can deliver these new form factors with regular casino math behind it. We don’t have to carve out a separate section because the game will be evaluated differently.”

New Forms, New Themes Scientific Games is using G2E to expand the TwinStar family of cabinets with three new premium hardware formats. The first is the TwinStar Skyscraper V24/24/55. That’s two standard video monitors topped by a 55-inch vertical flat LCD monitor. The inaugural game brings back a legendary WMS brand—Jackpot Party. “It has all the familiar Jackpot Party elements—the pick-‘em feature, the spin of the disco ball on the top screen,” says Colella. “Jackpot Party has always been a really fun brand for us, so this will be a great addition.” Next up is the imposing TwinStar V75—featuring a massive 75-inch ultra-high-definition curved display. The machine is equipped with an oversized iDeck button panel, bash buttons on both sides, a USB charging port, and a seat to accommodate two. “We encourage two players to sit down and play these games,” Colella says. “A lot of times, one person will have to reach over the other player on these kinds of games, so we put spin buttons on each side. It’s comfortable no matter where you’re sitting. I’m really very impressed with the ergonomics for this as a large-format cabinet. I feel I can finally sit down and play as long as I want to play.” The inaugural V75 game is another Monopoly title—Monopoly Hot Shot. It’s a Monopoly-themed slot with the Hot Shot mechanic, with three mini game-in-game bonuses. Finally, the company is launching the TwinStar J43 with iReels. It uses the J43 format for a game featuring stepper reels with transparent animation

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over top, like the old WMS Transmissive Reels and Bally iReels game groups. The two launch games are The Lord of the Rings: Rule Them All and Cash Spin Deluxe. The latter features gesture control to physically spin the bonus wheel. Scientific Games is using many of the new form factors on what promises to be the most high-profile licensed game series at the show—the first games in the James Bond series. The company is launching the first three titles at G2E in a Bond series that eventually will highlight all 24 feature films and six different actors who portrayed Ian Fleming’s legendary British agent——along with a number of the villains and “Bond Girls”—in films produced by Eon Productions. The new Bond slot machines will be positioned in Scientific Games’ booth around a real Aston Martin sports car, the iconic brand of the Bond character’s fully equipped spy cars. The first game in the Bond series is a

game themed around the latest Bond film, Casino Royale. The Casino Royale slot is on the new Gamefield 2.0 cabinet, which features a horizontal 43-inch portrait monitor for the base game flowing up to a vertical 43-inch top-box display. Also on display will be Goldfinger on the J43 with iReels cabinet. In the high-denomination, wide-area progressive space will be Diamonds Are Forever, depicting the seventh Bond film. Colella says this year’s G2E lineup will redefine the product roadmap for Scientific Games for years to come. “I’m really proud of the lineup we have,” he says. “We have some of the best games in the business.”

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FRANKLY SPEAKING by Frank Legato

Keynotes and Cash Grabs

Global Gaming Business OCTOBER 2017

Pinball? Younger crowds? Man, I’ve been waiting for this kind of game for a while. Like a lot of people my age, I spent much of my adolescence (and probably too much of my early 20s, to be honest) playing pinball. I’m not a “younger crowd.” I’m an old crowd. An old, old crowd. We baby boomers can slay most pinball games, because we have skills honed over an abnormally long, largely wasted youth. Younger crowd? I know 70-year-olds who are going to want to crush this kind of game. The casino probably won’t let us hit the game too much, and I’m sure IGT worked that factor into the design. I’m just saying, I’m 60, and I want to play this game. IGT’s got a few games targeting those youngsters who go for the iPhones and video games. This isn’t it. Fellow boomers, meet me at Texas Tea Pinball. Bring beer. In other gaming news, the New Hampshire Lottery is launching a New England Patriots $5 scratch-ticket game. It is the sixth consecutive year the lottery has offered a Patriots-themed game, under an ongoing state program called “They’re the New England Patriots So They’re New Hampshire Too.” Hidden symbols to uncover for prizes on the scratch tickets are themed to reflect the Patriots. Players can win for scratching off three “Patriot Opponent Playbook” symbols, or three Bill Belichick-as-a-spy images, or just one image of Gronkowski. (He only needs one.) The top prize is won by scratching to reveal three deflated footballs. So, do you think Stephen King will pass out Dave & Busters wings and sliders? That would be the best keynote ever. VIC TOR RINAL DO

see that Stephen King is doing a keynote address at the Global Gaming Expo. Love that new movie It... Oh, it’s not that Stephen King. It’s the Stephen King who is CEO of Dave & Buster’s. He is going to draw parallels between the development of the casino industry and the empire of bistro-sports bars he runs, particularly the astounding parallels between a craps table and a deep fryer. Oh, I’m kidding. It’s the success of Dave & Buster’s with the millennial generation—a subject of which our industry simply cannot get enough—that will be the key subject of King’s talk with G2E attendees. King also will host a roundtable discussion exploring why his name is neither Dave nor Buster. It’s our big trade show issue, so this is where I usually note the stuff that I think will be great. Not surprisingly, all the games are great, as you’ll see in our annual “Global Games” feature, the result of our extensive research into the focus and new products of each slotmaker, during which not one—not one single executive—commented that his or her company’s 2017 focus was on “achieving mediocrity.” Although I would love a quote like that in one of these stories: “We’re aiming for pretty OK,” says CFO Larry Steinhauser. “We build our games to have low to moderate appeal, to a very limited number of players.” In any event, I’m not going to pick favorites, because in my business, that never ends well. OK, with the show-issue stuff out of the way, it’s time to look at the month’s gaming news, brought to you by US Bank. (Not really, but I always wanted a sponsor, and they do advertise.) It says here that fistfights broke out among Las Vegas Strip clubgoers when a man began throwing $100 bills in the air at the Cromwell. It was about 4 a.m. outside the Drai’s nightclub. The guy tossed a stack of C-notes in the air over a crowd, and as you can imagine, it was like tossing a steak to a pack of hungry pit bulls. A melee ensued. The constabulary was summoned. Geez. You know, I never seem to be in a casino on one of those many occasions when people come out of a nightclub and throw cash in the air. I’m lucky if I find a nickel on the floor. In fact, I remember when that place was the Barbary Coast. The only thing getting tossed back then were whiskey-drunk patrons. (No, not me.) My only message for this particular reveler is this: Next time you feel like tossing money, try 4 in the afternoon instead of 4 in the morning. Damn millennials. California’s Graton Resort and Casino just launched IGT’s Texas Tea Pinball. It is the time-honored video slot with the Texas oil tycoon featuring a bonus game that is an actual skill-based game of pinball. Graton Assistant General Manager Brian Green commented to a reporter that the game is designed to “attract younger crowds.”

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New Name, New Direction Stars Group diversifying poker with casino and sports By Steve RuDDock

n the summer of 2014, the online gaming world was caught off guard when Amaya Gaming, a small Canadian B2C gaming company, purchased PokerStars and all of its assets for $4.9 billion. The shock was not only because it was Amaya Gaming that was purchasing PokerStars, but because online poker is largely seen as a nongrowth area of online gaming. What these people didn’t consider was PokerStars had more room to grow than any other gaming company because it lacked sports and casino. Since the sale, the company has been anything but idle with its new toy. Over the course of 2015, Amaya added casino games and sports betting, and began fundamentally shifting the PokerStars online poker business model. Another significant change occurred on August 1, when in an effort to tie all of its products together, Amaya rebranded itself as the Stars Group. The end goal appears to be to turn the world’s largest online poker site into the world’s largest gaming site. In doing so, PokerStars hopes to maintain its online poker stranglehold while at the same time diversifying its product line. On the latter front, so far, so good.

casino and Sports Since branching out and adding casino and sports betting, the company’s top-line revenue numbers have grown. In Q2 2017, the Stars Group’s total revenues for the quarter increased approximately 6.8 percent year-over-year. The growth was on the back of real-money online casino and sports book revenues, which rose 50.2 percent year-over-year. Revenue is also better balanced between poker and its other products. In Q2 2016, online poker accounted for over 75 percent of all revenue. In Q2 2017, online poker’s share of total revenue fell to just over 66 percent, with online casino and sports book revenue now accounting for nearly 30 percent of the Stars Group’s total revenue. “Our evolution and transformation into the Stars Group continued as we completed our name change and head office move, while our second 94

Global Gaming Business OCTOBER 2017

quarter saw the strengthening of our core senior management team and continued solid revenue growth led by our real-money online casino offering,” says Rafi Ashkenazi, chief executive officer of the newly minted Stars Group, during the company’s Q2 2017 earnings report. “We plan to use this momentum to continue improving and strengthening our business and pursuing our strategic objectives.” With the Stars Group branching out into sports betting and casino, the company’s “strategic objectives” have certainly undergone a radical shift. No longer completely reliant on online poker revenue—evidenced by poker revenue falling 5.9 percent year-over-year in Q2—PokerStars is in a much different place than it was just three years ago under the stewardship of the Scheinbergs, and even more recently under the leadership of David Baazov, who resigned and was later charged with insider trading in Canada. The charges are still pending.

PokerStars’ Slow transition Founded in 2000 by father-and-son duo Isai and Mark Scheinberg, PokerStars went live with a play-money beta test on one of the most infamous dates in world history: September 11, 2001. Despite its ill-omened launch date, the PokerStars software was well received. Three months later, on December 12, 2001, PokerStars launched its real-money client. In the ensuing years the company would grow larger and more important than virtually anyone could have imagined. However, for most of its existence, PokerStars bucked an industry trend, and remained exclusively an online poker provider. Its competitors added lucrative casino games and sports betting options, but throughout the Scheinberg era, PokerStars shied away from casino and PokerStars returned to the United States in 2015 when New Jersey issued the company a license to conduct iGaming in the state

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“Our evolution and transformation into the Stars Group continued as we completed our name change and head office move, while our second quarter saw the strengthening of our core senior management team and continued solid revenue growth led by our real-money online casino offering.” —Rafi Ashkenazi, Chief Executive Officer, The Stars Group

sports betting. And for good reason. Not only were they proverbially “printing money” as the top online poker operator during the poker boom, but by avoiding casino and sports betting, PokerStars has been able to argue it was operating lawfully in the United States (its largest market) during the 2006-2011 period between the passage of the Unlawful Internet Gaming Enforcement Act (UIGEA) and what would become known as Black Friday. Because they were poker-only, PokerStars claims it was never in violation of the big three of U.S. gambling laws: the 1961 Wire Act; the Illegal Gambling Business Act; and, UIGEA. Legal opinions obtained by the company stated that since PokerStars was only offering online poker, a game of skill, they were in compliance with all three U.S. laws. Had the company moved into casino, or the even more problematic arena of sports betting, that would not have been the case.

Interestingly, PokerStars legal counsel opined that the 1961 Wire Act only applied to sports betting and not to online poker. Several years later, a 2011 Department of Justice Office of Legal Counsel opinion that paved the way for intrastate online gaming in the United States agreed with this assessment. That said, not everyone agreed. In 2011, PokerStars was caught up in a rash of online poker indictments issued by the U.S. Attorney for the Southern District of New York. The major online poker operators in the U.S. were seized, and key individuals at Full Tilt Poker, PokerStars and Ultimate Bet/Absolute Poker all faced charges. Of the affected sites, PokerStars was the only one that weathered the storm. A testament to the company and its executives who didn’t fall into the trap that took down its chief rival Full Tilt Poker—using player de-

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“Our job is to bring as many people into the room as possible, maintain a healthy and responsible level of deposits and create a safe environment in which players can compete fairly for each other’s money.” —Eric Hollreiser, Vice President of Corporate Communications, The Stars Group

posits for operational expenses—PokerStars had already begun branching out into other markets, and its reliance on the U.S. market was waning. In the end, the Black Friday indictments made the decision easy: agree to leave the U.S. market until the country got its act together and legalized online poker and/or gambling. Once it left the U.S. market (PokerStars later settled with the Department of Justice but admitted no wrongdoing; to date, however, Isai Scheinberg has not reached a settlement agreement), PokerStars’ hands were untied and the company was free to explore sports betting and casino games, which are legal and regulated in many of the other markets the company was licensed in. One market that remained out of reach was the United States. In 2013, the U.S. market was just opening up. After its application for a New Jersey license was suspended, it became clear that as long as the Scheinbergs were at the helm, and any vestige of their 2006-2011 past was in place, U.S. regulators weren’t going to welcome PokerStars with open arms. This, despite its settlement with the government explicitly stating the company could return to the U.S. in legal markets. So, after 13 years under the stewardship of the Scheinbergs, PokerStars changed hands, and in September 2015, it received its New Jersey gaming license for online poker and online casino games.

Core Customers Unhappy When Amaya Gaming took control of the world’s No. 1 online poker site, change was anticipated, but the speed at which the changes were made caught many people off guard. Longtime customers were nonplussed with the new direction and cursed Amaya for not being true to the company’s poker roots. One of the key points of contention for disillusioned PokerStars customers is the rewards system. This was magnified by a 2015 decision to prematurely end rewards designated for the top tier of the program. The once-lucrative (for a small minority of players) program has been systematically dismantled over the past several years, with a completely new rewards system launched earlier this year, much to the chagrin of the highvolume players that once benefited from PokerStars’ generosity. Eric Hollreiser, vice president of corporate communications for the Stars Group, says the changes were necessary “to bring greater balance to the ecosystem and economy within our player community.” The company’s old VIP Program incentivized high-volume, consistent play, with some of the highest-volume players earning as much as an 80 percent discount. “This kind of reward program was very successful during the poker 96

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boom, as we had such high volumes of new players coming to the game month after month,” Hollreiser says. “The times changed, though.” “After 2010/2011, the rate of growth in the number of high-volume, skilled players was much higher than the rate of growth of new and recreational players, which created an imbalance in that ‘traditional’ rewards program. “There was a problem that the old model of rewards had created, a class of players who were ‘making a living’ through the rake-back rewards, while being break-even at the tables. Obviously this was not every highvolume player, but over time it consisted of a large—and growing—class of players. Individually, it’s not a problem, but at scale it is because the rate of growth of these players was larger than the rate of growth of new players, and the skill gap increased considerably, which meant that recreational and new players were losing their bankrolls at a faster and faster pace. “This created a disincentive for these players to return, make another deposit and find out what poker is really about. “A key point that has been frequently overlooked is that far too many players weren’t getting anything out of our previous rewards program, which was predominantly focused on a month-long goal. “We believe that Stars Rewards is more accessible and better tailored to a wider group of players, and with greater immediacy.” During the Q2 earnings report, Ashkenazi says, “To date, Stars Rewards has positively impacted the overall product ecosystem across verticals and has received positive feedback from most players.”

Is PokerStars Still Putting Poker First? PokerStars finds itself threading a very fine needle. The company is trying to gobble up online casino and sports betting market share while making long-overdue, but divisive changes to its online poker product. Casino and sports are its growth verticals, but poker still butters its bread. Unfortunately, the changes have hurt the company’s reputation. Beyond the rewards changes, new products like Spin & Go and the addition of casino and sports betting have created a narrative within the professional poker community that says PokerStars doesn’t want players to win and is no longer putting poker first. “It’s rubbish and demonstrably false,” Hollreiser says. “We believe we offer more opportunities for professional poker players to win than any other site,” he continues. “Our regular tournament schedule pays out more than $200 million to players in multi-table tournaments every month. Two hundred million dollars. I think professional poker players who are confident in their skills would find that to be a very attractive

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Spin & Go is just one of several new products that have demonstrated that the Stars Group is willing to expand beyond traditional online poker

proposition. “There has always been a symbiotic relationship between PokerStars and the professional poker community—just as there has been with other poker companies, both online and bricks-and-mortar. “Our job is to bring as many people into the room as possible, maintain a healthy and responsible level of deposits and create a safe environment in which players can compete fairly for each other’s money. The more skilled a player is, the more likely they are to win more money and more often than other players. In exchange, we take a piece of the pot. “As we discussed, we work hard to create an ecosystem that attracts the most players and the most deposits. We have long invested more in marketing than any other poker operator. “In terms of our reward and pricing changes, we continue to offer the most

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attractive platform for players to win money—potentially life-changing sums. “We also offer more opportunities to win seats to our live events where players can likewise compete for life-changing money, and have recently changed our package policy with an aim that more part-time players will be able to experience our great live events. “We no longer offer players the ability to earn significant rake-back simply for playing in high volumes. So we believe we are maintaining that symbiotic relationship by doing our part: bringing more money and more players onto the site. “The truth is the symbiotic relationship does not mean that we owe anyone a living though rake-back rewards. It’s not been an easy transition, but it’s one that we believed was necessary for the long-term future of PokerStars and will allow us to continue hosting the best poker games in the world.”

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Pampering, $ Purchasing $ and Partying $ More opportunity for increased revenue

By Bob Boughner and Steve Gallaway

roviding customers with experiences that exceed their expectations significantly improves the operator’s ability to attract and retain customers. These experiences can be created in a casino resort environment in spa, retail, nightlife and entertainment in both destination and regional gaming markets. Customers who provide feedback tend to be inclined to offer both positive and constructive feedback that focuses much on their non-gaming experiences. Incorporating non-gaming amenities as a complement to the gaming experience provides customers a more complete and hospitality-driven visit. These concepts are not new. Carefully planned and well-executed non-gaming amenities provide operators with significant opportunities to increase revenue, profit, and ultimately, customer loyalty. The greatest examples of this approach are evident in Las Vegas. Today, the largest resorts on the Las Vegas Strip generate less than 40 percent of their revenue from gaming. Outside of Las Vegas, casinos, resort casinos and integrated resorts in multiple jurisdictions have realized the tremendous potential of their non-gaming amenities. Some operators have changed their perspectives and offer additional and unique non-gaming amenities at their properties. As a result, many of these operators have realized an uptick in revenue and profit. An integrated resort that includes gaming is the purest form of 21-plus entertainment. It has all of the necessary ingredients for fun. We should think twice before we give the ingredients to that successful recipe away solely as a “comp” for a “high roller.”

Global Gaming Business OCTOBER 2017

Spas: Essential, Nice To Have or Run As Fast As You Can? The short answer is, it depends. As a practical matter, we believe spas add value to hotels when certain criteria are met. In a regional market, we recommend a minimum of 250 guest rooms, average occupancy of at least 85 percent, and a market opportunity to attract customers in the 30-45 age group in addition to the 45-and-up age group. By way of example, a 250-room hotel that achieves an average occupancy of 85 percent with an average of 1.75 guests per room could generate between $600,000 and $800,000 in total annual spa revenue. A competently self-operated spa should generate a profit margin in the 15 percent25 percent range. (It is interesting to note that one of the fastest growing consumer segments in the spa industry is men.) Regional operators may want to consider acquiring a franchise spa operation, which provides the operator with a good ownership model and the ability to have a proven brand become part of the hotel’s amenity offerings. Elements Massage is a fresh-looking brand offering a relatively simple business model for spa operators and a predictable and quality experience for the guest. Training is provided for areas like marketing, finance, operations, and client and talent acquisition: all comprised of time-tested and proven methodologies. Serasana, an alternative spa franchise operation, offers massage, yoga, tea service and acupuncture treatments. Serasana boasts a broad customer demographic that is recession-resistant, online and mobile scheduling applications, and established social media platforms. Owning a franchise spa operation may be an affordable and quick-to-market approach.

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In destination markets such as Las Vegas, Atlantic City, Macau and Singapore, spa operations are more complex and require significant planning efforts and substantive capital investment. A well-designed and properly positioned spa can help create a halo effect for the entire property. Certain casino hotels include the word “spa” in the name of the hotel property to help position it as a resort hotel. In 2017, Hyatt Hotels acquired two established wellness companies in two separate transactions, Miraval Group and Exhale, to be a part of the Hyatt family of brands. Miraval and Exhale have distinctive approaches to spa and overall wellness services and experiences. World of Hyatt, the Hyatt loyalty program, currently provides its members the opportunity to earn and redeem benefits on a limited basis. There is some speculation that a loyalty program for Exhale may be adopted in the future. Planning, developing and operating a full-service spa requires a great deal of research, preparation and planning. Specific tasks include competitive market research, including site visits to “sample” the services provided and experience the ease of making a spa appointment, architectural and design elements, the comfort and practicality of wet areas, and water features and other unique aspects of the spa. Consulting services may include comprehensive feasibility studies, proforma financial projections, space planning and facility programming, and concept and interior design studies. The selection of technology solutions must also be evaluated, and selections must be made based on compatibility with existing hotel systems and availability of a mobile application.

Entertainment: Show Business Is Two Words— Show and Business Anecdotally, it is understood that entertainment has a positive impact on gaming revenue. It remains a popular non-gaming amenity that is generally easy to fill (assuming the right act or show is booked) and to which players seem to respond well. However, it is often difficult to quantify this benefit, as building theaters is a very expensive proposition. Generally, outside of Las Vegas, the entertainment department is always a loss leader. In order to capitalize on the entertainment opportunity, five key items must be addressed: the type of acts being booked, time of day and day of week the act plays, the incremental gain from concession and retail sales, the increase in revenue generated by the hotel department, and the incremental gaming revenue garnered. • Entertainment offered. In preparing a schedule of entertainment, the operation needs to have a goal for each event. This could be to attract new customers, increase play from the Asian demand segment, provide a reward and incentive to return to loyal customers, or to book an act whose incremental ticket and concession sales will more than cover the cost of the entertainment (this is rarely the reason). Based on the purpose of the event, the appropriate act can then be determined. If your casino is in Arizona or California, perhaps attracting Enrique Iglesias or Mi Gente could help your casino attract and grow the

OCTOBER 2017 www.ggbmagazine.com

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Latino demand segment. An operation based near the Bay Area or Portland may want to book Joey Yung or Meng Ting Wei to grow the Asian demand segment. When working on the contract with the talent, consideration needs to be given to the length of the show. While we want the customer to enjoy the experience, we don’t want them to enjoy it for so long that we aren’t able to allow them time to go enjoy their favorite entertainment activity: gaming. A 1 hour, 45 minute show is a good length. Avoiding bands such as Phish or Widespread Panic is a good idea, as they can jam on stage for three-plus hours. (However, if you do book these groups, please reserve us a seat.) In other words, a show should never be chosen based on the preference of the entertainment director or other senior executive; rather, it should be selected to best realize the goals of the event. • Time and day of event. If your casino is already at capacity on the weekends, an 8 p.m. show on Saturday night may have a deleterious effect on gaming revenues, as your customers may choose to go elsewhere on the Saturday night since they don’t want to have to fight to find a parking space, get a seat at their favorite restaurant, or deal with congestion on the casino floor immediately preceding or following the show. Alternatively, if the show can be operated on a break-even basis when beverage sales and other non-gaming revenues are considered, the impact of a high-energy show can spill over onto the casino floor with positive results. Running a show on a Thursday night may attract a segment who previously would not have visited the casino, will be less likely to increase traffic to levels that will turn away the core gaming customer, and, with the right act, will increase the energy level throughout the facility, thereby enhancing every customer’s experience. Other considerations for the timing of a show should be focused on the demographic targeted for the event. If a popular Chinese artist is chosen, the casino may find that the best time for the event is a Saturday at 2 a.m. “A main point of appeal to the Asians, who make offpeak show hours work, in particular to the premium players, is that many are managers, self-employed, or own their businesses. They are not pinned to a structured work schedule,” says Walter Soo, corporate director of player development at Great Canadian Gaming Corporation. • Incremental gain from concession and retail sales. The profit from

concession and retail sales can be staggering. Most of your concert/show-goers will purchase at least one beverage, and many will buy a shirt, hat, hoodie or CD (too bad there is no place to play these anymore). Prices that can be charged for drinks at a show can rival those found on the Las Vegas Strip. As such, the casino should be sure to retain the rights to oversee this concession. While the retail

100 Global Gaming Business OCTOBER 2017

will likely be handled by the act, it is reasonable to accept a percentage of the sales or charge a fixed fee as a rental. • Incremental gain in rooms revenue. Although casino hotels rarely have difficulty in filling rooms on the weekend, the right act can result in a significant bump in the rate achieved from the retail rooms on a weekend period. For those acts occurring during the midweek, entertainment can act as a source to ensure that the hotel sells out at a premium rate. • Incremental gain in casino revenue. Finally, and arguably the most important factor, is the incremental benefit a show can contribute to the gaming side. Often, this can be difficult to quantify, because the benefit is somewhat qualitative as the customer chooses to remain a loyal member of your club for benefits such as free shows. However, often by comparing coin-in and table drop to prior comparable periods, the casino can quantitatively illustrate the bump experienced from a show. When doing these comparisons, special consideration must be given to not only include holidays and other peak periods (e.g., a million-dollar giveaway promotion) when coin-in would have been expected to be abnormally high anyway. By considering and evaluating each of the items above and taking into account the true incremental gross operating income from each department, a casino resort can fully understand the benefit of entertainment and start to develop strategies to further enhance, or begin to see, profit from this perceived rogue entity.

Retail: Then and Now In the early days, casino hotel operators on the Las Vegas Strip probably did not fully envision what retail would look like on the Strip in 2017. However, they clearly had a vision for what made sense for retaining their customers. They knew what stores to have: a gift shop, a women’s clothing store, a men’s clothing store, a jewelry store and a liquor store. These stores were implemented before bar codes became commercially viable in 1974 when the National Cash Register Company launched its first scanner. (Ironically, the first product with a bar code scanned was a 10-pack of Wrigley’s Juicy Fruit chewing gum, a product that very few

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casino operators actually sold in those days as they knew it would shorten the life of their casino carpets.) That was then. Today, the retail environment in Las Vegas is unlike any other in the Western Hemisphere. The retail offerings feature ambitious and spectacularly designed environments, and world-class retail and dining brands with multiple locations across all price points, including Louis Vuitton, Gucci, Dolce & Gabbana, Tom Ford, Prada, Fendi, Tiffany & Co., Celine, Saint Laurent, Richard Mille, Harry Winston, Giorgio Armani and Apple, among others. Some of the largest and most prestigious mall operators have a significant

presence in Las Vegas, including Simon Property Group and General Growth Properties. Annual sales have periodically exceeded $1,000 per square foot. The Las Vegas Strip is also home to numerous street-facing retail stores and restaurants. These operations not only generate significant revenue for the retailers and mall operators, they generate significant traffic for other non-gaming amenities and the casinos. In regional gaming markets, retail strategies can be more difficult to develop. A 2017 CoStar, Jones Lang LaSalle report identifies key challenges, including properties that are falling behind in design, upkeep and tenant mix or are located in areas where demographics have shifted unfavorably for retailers and are now competing with newer or better retail real estate product elsewhere. The high frequency of visitation by the same customers experienced in regional gaming operations, while very desirable for the casino operation, can further challenge the retail operation if inventory turnover does not allow for fresh product. Updated versions of the gift shop, womenâ&#x20AC;&#x2122;s and menâ&#x20AC;&#x2122;s stores, liquor and jewelry stores may still fit the bill. However, we suspect you still wonâ&#x20AC;&#x2122;t offer chewing gum.

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Nightlife: Not Right For Everyone Las Vegas has clearly demonstrated the value of nightclub operations and the levels of profit that can flow through to the bottom line from these operations. The level of capital investment in nightclubs in Las Vegas is approaching $1 billion. WME, a leading talent agency, currently represents over 150 DJs, slightly more than the number of country artists on its roster. The amount that individuals are willing to pay for bottle service is staggering, and the premium that the bars charge for drinks is borderline offensive. Unfortunately, this business strategy rarely translates in jurisdictions outside of Las Vegas. Las Vegas has over 130,000 hotel rooms with a highly concentrated number of tourists who are in the city with the primary intent of enjoying adult entertainment (gaming, fine dining, entertainment, nightclubs and other activities). For most casinos outside of Las Vegas, their locations are generally not near the hub of entertainment, can often be found in more remote and/or less attractive regions, and generate the majority of their revenue from the core American gaming demand segment: patrons over the age of 50. When these casinos do attempt nightclubs, they often attract a segment that does not synergize well with their core customer. As such, unless your casino is located in a prime location in an urban area (e.g., Jack Casino in Cleveland) or has a density of hotel rooms and tourists to feed the operation (e.g., Premier at Borgata in Atlantic City), it is likely better to not include a nightclub as part of your strategy to increase non-gaming revenue and profit.

Resort Fees, Parking and Other: It Adds Up Resort fees are now commonplace charges that provide meaningful revenue and profit streams. The keys to a successful resort fee program include providing services of real, not just perceived, value, and a high level of transparency. Examples include in-room daily internet access for two devices (offer a high-speed alternative for an additional daily fee), property-wide internet access, local in-room phone charges, fitness center access, and airline boarding pass printing. Not surprisingly, properties with more and lavish amenities typically have higher room rates and typically charge higher resort fees. Charging customers for parking is on the rise in Las Vegas, most notably on the Las Vegas Strip. While rates vary from property to property, these fees represent new revenue and profit opportunities. Some properties offer loyalty card programs that provide customers the opportunity to avoid payment of 102 Global Gaming Business OCTOBER 2017

parking fees once they have attained a certain status level in the program. Most Atlantic City casinos charge customers a parking fee, in part to offset fees that the properties pay to the state of New Jersey. Most Downtown Las Vegas properties have charged for parking for decades, with many offering rebates to customers based on their spend. Locals-oriented casinos in Las Vegas and regional markets throughout North America rarely charge for parking. The customer is simply not used to paying for parkingâ&#x20AC;&#x201D;anywhere. Similar to building nightclubs, most regional casinos should not charge for parking. However, in that rare situation, this could be a found source of profit. ATM fees present an opportunity for increasing other income. Like many business practices, individual operators have different views on the merits of charging ATM fees that are higher than banks charge to customers. Surveys of ATM fees charged in a given market are not difficult to obtain, and should be part a propertyâ&#x20AC;&#x2122;s routine pricing surveys. Furthermore, considering the volume of ATM transactions, the casino should provide the ATMs and benefit from the fees, or at a minimum share in the fees charged to the provider if a casino chooses to outsource this service.

Bob Boughner is a senior partner at Global Market Advisors. Steve Gallaway is managing partner of Global Market Advisors. GMA is the leading provider of consulting services to the gaming and hospitality industries.

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GLOBAL GAMING WOMEN

Learning at All Levels Extensive programs help advance the cause of women in gaming

“

e educate women because it is smart—women are one-half of our human resources, and we increasingly see the beneficial effects of educated women in all realms of life and in all parts of the world. We educate women because it is transformative. Education doesn’t just boost incomes and economies; it elevates us, defusing differences, opening common ground, and making the most of all our human capacities.” These 2013 remarks by Harvard University President Drew Faust truly capture the mission of Global Gaming Women. Since relaunching early in 2016 as an independent nonprofit, GGW has been working tirelessly—with the help of hundreds of dedicated volunteers across the United States—to educate women to help grow and transform the gaming industry. It’s been a very busy year, and our young organization is continuing to expand. At our annual meeting in July, we welcomed seven new members to our dedicated board of directors, which now includes representation from the United States and Canada, with expertise in commercial and tribal gaming, manufacturing, education and compliance. We recently launched a new website with enhanced database and marketing capabilities to better serve our members, and are currently developing new initiatives for the future. Notable among them is the 2018 relaunch of Great Women of Gaming, with expanded award categories, which will recognize the exceptional contributions of women from all levels, and all industry sectors. One of the questions I am often asked is, “What kind of programming does Global Gaming Women offer for me?” This column provides a great opportunity to answer that question by highlighting the accomplishments in 2016 and 2017 of three of our major program committees—Education, Events and Mentoring. With the generous financial support of our sponsors, the GGW Education Committee provides a tiered series of targeted programs free of charge for women in gaming, as well as scholarships to third-party events such as the MGM Leadership Conference and Global Gaming Expo. The programs are led by professional modera-

By Virginia McDowell

tors, with guest presentations from female industry leaders. The Front Line Leaders program was developed for supervisors and new managers, and W Development was constructed for senior executives. The Leadership Development program for managers and new directors and Front Line Leaders programs are offered regionally to make the programming accessible to women across the United States. Programs since relaunching include: • Midwest Leadership Development: August 2016 – Hollywood Casino and Hotel, Joliet, IL • W Development Conference: August 2016 – Red Rock Casino, Resort and Spa, Las Vegas • Southern Leadership Development: November 2016 – Seminole Hard Rock Hotel & Casino, Hollywood • Eastern Leadership Development: April 2017 – SugarHouse Casino, Philadelphia • Western Front Line Leaders: April 11, 2017 – M Resort Spa Casino, Las Vegas • Eastern Front Line Leaders: May 2017 – Tropicana Casino & Resort, Atlantic City • Western Leadership Development: May 2017 – Green Valley Ranch Resort Spa and CasinoHenderson, NV • W Development Conference: June 2017 – Aliante Casino and Hotel, Las Vegas • Southern Front Line Leaders: August 2017 – IP Casino Resort Spa, Biloxi, MS • Midwest Front Line Leaders: September 2017 - Belterra Casino Resort & Spa, Florence, IN

The Events Committee is responsible for development conferences, industry events and GGW programming for the annual Global Gaming Expo. The development conferences are comprehensive full-day programs on specific areas of personal and professional growth, including the Power of Technology Conference in 2016 and the upcoming Business of Business Conference, which will include topics such as understanding financial metrics and P&L statements. The Global Gaming Expo full-day program in 2016 “The Power of You” focused on topics including developing a personal brand, and the business utilization of social media. The 2017 G2E program “The Power of Entertainment” will focus on how to hire great candidates, innovation through disruptive

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technology and the power of financial freedom. In addition, the Events Committee offered programs at industry events all over the globe, including: • ICE Totally Gaming (London) 2016, 2017 • National Indian Gaming Association 2016, 2017 • Southern Gaming Summit & Bingo World 2016, 2017 • Iowa Women Leaders in Gaming Summit 2016, 2017 • East Coast Gaming Congress 2016 • International Association of Gaming Advisors 2017 • North American Gaming Regulators Association 2017 • Canadian Gaming Summit 2017 • Oklahoma Indian Gaming Association 2017 • Eastern European Gaming Summit 2016, 2017 • Australia Gaming Panel 2016

The Mentoring Committee developed Lean In Circles as a peer support network for a diverse group of women in gaming, including women representing commercial and tribal gaming, and manufacturing. Lean In Circles grew out of Facebook Chief Operating Officer Sheryl Sandberg’s 2010 TEDTalk, and led to her best-selling book Lean In: Women, Work and the Will to Lead. The Circles are small groups of women at similar stages of their careers that meet regularly and serve as a personal “board of directors” for their fellow participants. There are over 80 women in the 11 GGW Lean In Circles, including three virtual circles to accommodate women who work in remote areas. The topics discussed can range from effective workplace communication to inclusive leadership. Want to get involved as a participant, volunteer, sponsor or host of a GGW event? We would love to hear from you and have you join our mission to support the development and success of women in the gaming industry. Please visit our new website at globalgamingwomen.org to learn more, and sign up! Virginia McDowell retired as president and CEO of Isle of Capri Casinos in April 2016, after a 35-year career in the gaming industry. She currently serves as vice chair of Global Gaming Women.

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ANALYTICS

Data-Driven Decision-Making With the millions of bits of data, how do you make good choices for F&B?

By Robert Rebholz

here are few things in an F&B director’s job that are more fulfilling than when a new guest shows up for a meal after checking into the resort, and immediately afterward posts an online review inviting the rest of the world to enjoy the same memorable dining experience. Creating lasting connections with your guests should be your primary goal, with profitability being your expected result. The question to ask yourself is how to start taking advantage of the data your point-of-sale (POS) system generates to assist in the following: • Enhance the guest experience • Better engage your employees • Drive revenue • Optimize operational efficiencies Your F&B operations are already producing a rich mix of data, but you may not realize the potential value it has for you or how to work with it.

Your Sources of Data Think about the streams of data— facts or metrics—pouring into your F&B operations from the activities that take place there: • Purchasing • Receiving • Production • Scheduling • Time Clock Management • Guest Ordering • Floor Management • Tracking Promotions • Reservation Management • Check Tendering • Banquet & Special Events • Social Media Then drill down with analysis of those activities by filtering the data surrounding the facts, such as time of day, day of week, month, tender amount, item name, tip percentage, venue, server, supplier, cashier and so on. Ultimately, all these streams flow through your POS solution, which becomes your biggest source for data. Yet few F&B directors have learned how to exploit their data fully, which means they’re missing out on huge opportunities to make better decisions

‘

and manage more effectively, and in turn, improve the guest experience and increase profitability. At the end of the day, that data disappears from sight and a new day begins. What’s missing is the intelligent use of analytics, which delivers the ability to draw new insights from the exceptions and trends formed by your data. The Difference Between Reporting and Analytics POS reporting is a mature, well-understood activity. It can tell you what happened in a descriptive way: You sold 644 appetizers at lunch in the bar during the last 30 days at a specific price. By adding analytics into the F&B reporting process, valuable insights can be uncovered and discovered: for example, that a single server sold four out of every five of those appetizers. Likewise, reporting on table turn rate, average check, productivity and tip amount could help identify superstars among staff or menu items, enabling the manager to deliver the kind of guest experience that turns into five-star online compliments—and those are gold. As the organization matures in its use of analytics, the resort can begin to optimize its insights to suggest what will happen: Placing this bartender into that shift will result in twice as many specialty cocktail orders. The intelligent use of analytics can help you determine the reasons why your guests choose to patronize your business and identify the products, services and communication content that will keep them returning and telling others to come too.

The use of analytics allows your managers and staff to make new decisions based not only on assumptions or what their gut tells them to do, but on the facts.

106 Global Gaming Business OCTOBER 2017

’

How to Get the Most from your POS If your POS isn’t agile, flexible and reliable, your operations will never be either. That means working with a POS solution that allows you to set up a quick and easy-to-use end-user interface that aligns with your F&B workflows, including being able to

rapidly and simply accommodate all of your guests and their unique requests. When sales of a particular combination of items—a signature drink, a new method for preparing steak—are going crazy because Jimmy Fallon has just talked them up, you and your staff want to be ready to jump in and take advantage without the POS system slowing service. Guessing Leads to Costly Results, Over and Over The use of analytics allows your managers and staff to make new decisions based not only on assumptions or what their gut tells them to do, but on the facts. Data that is correctly gathered and intelligently mined eliminates the risk of guessing. Take the situation of fraud detection in bar activities or at the front of the house. A dishonest bartender might charge customers the regular price for a drink but ring it up for less on the POS system and pocket the difference, or void guest checks after the drinks have been served and paid for, then later remove cash from the register. It might be difficult for the director or manager to detect a high void or return rate without the help of POS system data combined with analytics—for instance, examining voids, comps, transfers, reconciling cover-counts, etc.—to shine a light on the departures from standard operations or discrepancies in numbers from different sources. Drive Revenue and Increase Profitability The use of analytics to help you run your resort’s F&B operations allows you to turn the data you’re already generating from your POS solution into a rich blend of actionable insights that will help you empower your staff, bring in new revenue, increase wallet share, deliver better guest experiences and lower expenses. As a result of understanding what activities generate optimal results, your staff will enjoy greater success and bigger tips, and you’ll build a more loyal crew. And you can stop crunching spreadsheets in the back and spend more time out front delighting your guests. Robert Rebholz is director of product management for Agilysys.

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Putting money in your players’ pockets can be the key to success

Cash in Hand By Dave Bontempo

lowly, inexorably, funding floodgates open for gaming operators. Casinos find new revenue streams from debit cards, mobilephone access and retail shopping to augment brick-and-mortar ATMs. They also generate more transactions, helped by suppliers easing regulatory issues with compliance-based product features that target fraud. Even the speed of disbursement increases, as ATMs, kiosks and mobile technology work together. Big rewards greet those who serve this intensified market. During the season of G2E, with industry power brokers convening, companies offer new looks into their lineup. Their theme for funding: make it available, make it easy to attain and make it safe.

Payments Pay Off Las Vegas-based Everi Holdings encompasses the payments, games and intelligence realms. And the payments are hot. That sector was credited for a whopping tripling of stock-market shares over the last year. Everi Payments is a well-rounded collection of integrated solutions and kiosks bringing next-level transactional security to the casino floor. These components reduce the risk of fraud, increase patron accessibility to funds, and ease potential operator stress due to compliance and reporting requirements, company officials say.

Everi Payments is a well-rounded collection of integrated solutions and kiosks bringing next-level transactional security to the casino floor

108 Global Gaming Business OCTOBER 2017

“Our payments business continues to grow as we listen to the market needs and implement innovative, efficient, secure and compliant ways for players to access cash,” says Tim Richards, the company’s senior vice president of payments and innovations. “Everi was the first to provide the industry with an EMV (Europay, MasterCard and Visa)-compliant cash access product. Implementing compliant standards has allowed our customers to reap the benefits of greater approval percentages, higher transaction sizes and reduced fraud. “By being first with this technology, we have been instrumental in assisting with the writing of EMV standards for our specific transaction types, and also building out the technology to continue delivering on the unique payment types and processes associated with gaming.” The company has not rested upon its accomplishments. As G2E dawns, several new aspects greet the industry. “We are excited about introducing our next-generation full-service kiosk, with security features that are unmatched,” Richards indicates. “We are also launching mobile cage products that will allow

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players to stay at their game while they withdraw funds for continued play, with the transaction still being completed by cage employees. And our wallet, which integrates with our CashClub and Xchange products, has been enhanced for improved ease of use and adoption for casino players.” Richards says Everi’s focus has evolved in the last couple of years. It now integrates varied product lines to harness the power of the entire company. Previously, it acquired companies but focused on improving each individual product. “This allowed our individual competitors to compete with us on a perproduct basis,” he asserts. “Today, we focus on the combination of our products and information. This strategy creates powerful products that can deliver extraordinary benefits to our customers. It also forces competitors to compete with Everi as a company, across our entire product line.” Everi’s strategy includes increasing funds to the floor. One of its tools is a CashClub patron application to allow gamblers access to their payment profile. The profile stores card and bank information and includes a wallet to hold funds. This allows the player to prepare sources of funding prior to a visit to a gaming establishment, access funds in different ways and be able to stage transactions from the phone, allowing instant cash dispense at kiosks. Instant identification and validations are completed through the use of Everi’s own databases and third-party services. All relevant transactions are also written directly to its Everi Compliance system. To provide this offering, Everi integrates its CashClub application, wallet, ATM and UXC kiosk platforms, compliance applications, compliance analytics and proprietary gateway service.

Vividly Consistent Operators welcomed Vantiv, the Cincinnati-based, multibillion-dollar merchant-service giant, a couple of years back. Its entry to the industry signaled gaming’s large looming upside via the new realm of card transactions. Vantiv’s presence in the ATM and cash access sector has been significant. The company further indicated its gaming commitment by becoming a partner with Sightline Payments. “We are quite bullish as we move into 2018,” says Joe Pappano, senior vice president and managing director of Vantiv Entertainment Solutions. “There has been tremendous movement in terms of our relationships with the card issuers, system providers, networks, associations, alternative payment solutions and functionality related to wallets, and the ability to push funds in real time. An industry that has been so cash-reliant for so long finally has an answer to simplifying the consumers’ experience and converging their gaming and non-gaming activities.” Pappano says Vantiv integrates partnerships in the casino market, combining disparate points of interactions from point-of-sale systems, ATMs,

“Gaming entities want to know their fair share of entertainment spend and how they can generate more from a specific consumer. That is what Vivid and our data science solutions bring to the market—in-depth knowledge of behaviors.” —Joe Pappano, Senior Vice President and Managing Director, Vantiv Entertainment Solutions

kiosks, online platforms and cash-access points. Security is a major catalyst for Vantiv, and major credit-card companies will soon up the ante. “There are a number of innovative technologies surrounding biometrics to properly identify a customer, including MasterCard’s pilot on the facial recognition front,” Pappano says. “We are confident that MasterCard’s product will be available in the very near future and technologies like it will become more popular in the years ahead. There are many enhancements taking place in the industry, which include offerings from Visa (3D Secure 2.0—Verified by Visa). All of these technologies extend, tremendously, the aggregation of many data points to credential a consumer when conducting a transaction. When all of this occurs, Vantiv still plays a critical role in facilitating a seamless and secure process which protects the integrity of the transaction, the consumer and the brands.” How innovative is this trend? “Incredibly innovative,” he says. “The more data and accessibility we have to better understand who the consumer is, the better for everyone. We’re seeing great enhancements surrounding device fingerprinting, geolocation services, knowledge-based authentication and predictive patterns in terms of detecting behavior in where and what is purchased. You tie this technology to the enhanced data surrounding 3D Secure, biometrics and the various innovative fraud services and it’s truly insulating and evolutionary. All of this helps to combat fraud yet still promote a frictionless payments experience.” While security enhancements remain paramount, Pappano touts the marketing and promotional elements enabled by Vantiv’s Date Science. It literally provides a vivid operations picture. “We’ve started to produce a solution which can be customized for specific gaming operators,” he indicates. “We call the product Vivid. It is centered on data science, predictive analysis and consumer trends to understand the DNA of your customer by truly leveraging all of this ancillary payments data that allows you to enrich the persona of a customer and make better business decisions. “We are big on understanding consumers, and know they spend about 8 percent to 10 percent of their discretionary income on some form of entertainment, whether it’s lottery tickets, downloadable content, in-venue entertainment, going to an NFL game, visiting a local casino or participating in daily fantasy sports,” he adds. “Gaming entities want to know their fair share of entertainment spend and how they can generate more from a specific consumer. That is what Vivid and our data science solutions bring to the market—in-depth knowledge of behaviors.” OCTOBER 2017 www.ggbmagazine.com 109

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“The information that Play+ can deliver to a property operator is unlike any other data that they have or have seen. They can build an entire profile on me based on credit card information that has been used to fund Play+. It’s like layers of an onion—they know where I like to shop, where I like to dine, how often I travel somewhere, etc.” —Omer Sattar, Co-founder and Executive Vice President of Strategic Initiatives, Sightline Payments

Good Vision Omer Sattar, co-founder and executive vice president of strategic initiatives for Las Vegas-based Sightline Payments, has seen foresight rewarded. About five years ago, Sattar annexed the resources of Vantiv to broaden the reach of his Loyalty Plus product, now known as Play+. Vantiv is a mechanism Play+ utilizes to empower customers to use a debit or credit card to fund their accounts in real time, from a mobile device, online and on-site at various touch points, Sattar says. The Play+ domain spans both online and brick-and-mortar elements. “The information that Play+ can deliver to a property operator is unlike any other data that they have or have seen,” he says. “They can build an entire profile on me based on credit card information that has been used to fund Play+. It’s like layers of an onion—they know where I like to shop, where I like to dine, how often I travel somewhere, etc. With our partnership with Vantiv, you can really start mapping things out.” Sattar says the number of Play+ accounts is well into six figures, and over 30 programs are already launched with some of the biggest gaming operators in the United States. “We launch roughly a new program every eight to 10 weeks,” he says. “We think the next level is going to be with table games. How do you interact with them? We’ve spent a lot of time thinking about how we can leverage the existing hardware infrastructure deployed at tables and use that as an access point for delivering chips at the table. “One example works in the same way that Starbucks does. You have your mobile device, and say you want $200. We will approve your $200 through your Play+ account, and generate a bar code just like the Starbucks mobile app does. And, the hardware in the table includes a barcode reader. You’d sit at the table, scan your bar code and have $200 worth of chips at your table. That’s a clean user interface and experience.” Sattar says there’s a great deal of cash access outside of gaming that needs to come to the industry. “Look at what Wells Fargo launched nationwide recently,” he says. “You don’t need a physical ATM card to get money. What that means is that you can use your mobile device, go to an ATM and collect the money. ATMs become collection points—the actual transaction and authentication is done on your mobile device. We believe similar technologies can come to gaming, taking one more layer of friction out. “Another technology that has been out there for a number of years, which is coming to gaming, is like taking a picture of a check, which de110 Global Gaming Business OCTOBER 2017

posits to your bank. There’s no reason why you shouldn’t be able to do that theoretically with a TITO ticket at a casino too, and have it deposited back into your Play+ account.”

A Track Record Las Vegas-based DiTronics completes its second decade serving casino operators who require ATM, cash advance, check cashing guarantee and multifunction ticket redemption kiosk solutions. The company says it is the largest privately held provider of funds access solutions to the gaming industry, accommodating more than 100 casinos in the United States. DiTronics indicates it typically invests over 25 percent of its cash flow into research and development, trying to stay ahead of the industry’s demand curve. The company has grown rapidly in the past five years. Beyond customer service, it incorporates the concept of gamingfloor competition. Operators scan the casino floor and ask what value-added functions a product provides. Kiosks occupy prime real estate, the gaming floor area, where a revenue-generating slot machine might be more attractive than an ordinary kiosk. Operators seek bang for the buck, giving a kiosk the same need to compete as a casino employee. That requires a product durable and not oversized. Company officials say a ticket redemption kiosk

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providing a “concierge service” is an imminent trend. Casino guests will be able to purchase show and concert tickets, make future room reservations, adjust current room reservations, book restaurant tables, order take-out from inhouse restaurants, or order room service, cabanas and spa appointments. DiTronics uses the ultra-reliable Glory platform for its hardware, and provides systematic software add-ons. Two of its major products now are 4-in-1 multi-function kiosks, the DFS 200 and DFS 500. They support ticket redemption, bill break, ATM transactions with cash dispensed by the kiosk, and credit card and POS debit card cash advance authorizations. The kiosks are supported by DiTronics’ monitor and control system, providing data security with real-time backups and a minimum five years of data storage. This saves its clients from maintaining on-site servers, and either performing or having to schedule software updates. The company touts several features of its kiosks. Bill Break allows the ability to customize the bill break mix by kiosk, by zone or by casino floor. This reduces wear and tear on the kiosks.

The Jackpot Pay application can be provided by DFS 200 and DFS 500. This feature reduces attendant cash in pouch, cage payouts and cash on floor by combining ticket redemption and jackpot pay in one device. Capital investment is reduced by combining functionality in one machine, saving floor space. The Cash Advance platform provides a seamless funds access experience through credit and POS debit transactions, officials say. Players may initiate both credit and POS debit transactions on its ATMs, ticket-redemption kiosks or directly at the casino cage. It offers electronic signature capture with ACH funding for all transactions. In the check-cashing realm, DiTronics guarantees payment of all checks processed by its check system. Limits are set based on a rolling seven-day window. What a time to service the gaming industry. From cards and connectivity to kiosks and software, a boom period exists. The strategy is a version of connecting the dots, bringing players to their money, with speed and safety.

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GROWING

PAINS Arizona sees gambling expansion in wake of Glendale dispute By Dave Palermo

he recent settlement of a nasty, eight-year legal dispute pitting the sprawling Tohono O’odham Indian Nation against Arizona officials and several other American Indian tribes now promises to pave the way for a significant expansion of gambling in the Grand Canyon State. Tohono O’odham in July announced plans to expand its Desert Diamond casino in the Phoenix suburb of Glendale into what tribal Chairman Edward Manuel calls a “world-class resort,” potentially rivaling the nation’s largest Indian casinos. The current Desert Diamond West Valley Casino owned by the Tohono O’odham Indian Community is a large building with Class II slot machines. Plans will expand the casino to become a world-class resort close to the University of Phoenix Stadium, home to the Arizona Cardinals of the NFL and many special events.

112 Global Gaming Business OCTOBER 2017

And Governor Doug Ducey has expressed a willingness to renegotiate tribal-state casino regulatory agreements, or compacts, in an effort to “modernize” Arizona’s nearly $1.9 billion Indian gambling industry. Sixteen tribes now operate 24 casinos. “Gaming in Arizona has brought major economic opportunities while benefiting many state programs,” says Patrick Ptak, Ducey’s senior press secretary. “It’s also been a big success for Arizona’s tribal nations, and we are committed to building on that success.

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Considering Expanded Gambling

Arizona Governor Doug Ducey will renegotiate all gaming compacts with Arizona tribes as part of the settlement of the disputed Glendale casino with the Tohono O’odham Indian Community

“The governor is in the process of collaborating with Arizona’s tribal nations to modernize gaming compacts for the benefit of all parties. We intend to continue those discussions to create more opportunity for Arizonans and bring Arizona’s gaming into the 21st century.” Tohono O’odham, which purchased the Glendale property in 2003 in a federal land claims settlement, this spring won over legal opposition to the casino from state and tribal officials who argued the project violated promises made in a 2002 ballot initiative. Ducey and eight tribes signed agreements in November to amend tribalstate compacts allowing Tohono O’odham to proceed with the Glendale casino expansion but limiting further gambling development in the Phoenix area. Other tribes have since signed onto the agreement. Tohono O’odham officials the following May also signed onto the deal, agreeing with the state and other tribes to settle all legal action opposing the project. In exchange for the nation’s promise to halt future casino development in the Phoenix area, the state agreed to process the tribe’s applications for a liquor license and casino-style slot machines and table games. The tribe has been operating Class II bingo machines at a temporary facility. The state also said it will not oppose the nation’s efforts to have its land adjacent to the casino taken into trust. “They’ve come around,” Manuel says of the state and Phoenix-area tribes who filed lawsuits, sponsored congressional legislation and spent millions of dollars in a massive lobby effort aimed at blocking the project. “We’ve settled our disagreements,” Manuel says. “We’re ready to move on. We’re ready to work together. I think all the tribes are unified now. We’ve decided to move forward.” “The White Mountain Apache Tribe is confident that the compact amendment and future compact negotiations to modernize gaming in Arizona will have a positive impact upon Indian gaming in Arizona,” Chairman Ronnie Lupe of the White Mountain Apache Tribe said in a statement to The White Mountain Independent.

Ducey has not elaborated on his desire to “modernize” the compacts. But sources involved in preliminary talks between tribes and the governor’s office are anticipating amending the compacts to lift machine bet limits and caps on the number of devices. The two sides are also looking for wording in the agreements that would allow tribes to take advantage of potential expansion of federal and state-sanctioned gambling, particularly sports betting and internet wagering. “That’s a discussion that’s on the table,” says a source knowledgeable of the talks who requested anonymity. Indian tribes in 28 states operate government casinos in adherence with the Indian Gaming Regulatory Act (IGRA) and tribal-state compacts that define the scope of gambling that can be conducted on tribal trust lands. The legal and regulatory restrictions limit the ability of tribes to take advantage of expanded gambling, posing a threat to indigenous governments whose compacts give them regional or statewide exclusivity to operate casinos. The Arizona compact could serve as a template of sorts for tribes in other states limited by IGRA and state laws from embracing new forms of legal gambling. Arizona and tribal officials also are seeking to amend compacts to allow for new games and a change in the revenue-sharing formula without going back to the voters, as was the case with the 2002 initiative. “We are trying to avoid the political turmoil and significant costs of running a statewide referendum,” a source says. “I think we’ll need legislative action; I don’t think we’ll need another ballot initiative.”

Money Is Motivator Revenue-sharing provisions are crucial to the negotiations. Tribes have in the last decade contributed about $1.2 billion to the state, roughly half of which has gone to education. Other funds go to trauma and emergency services, tourism and wildlife conservation, regulatory costs, problem gambling programs and local governments. The industry also employs some 15,000 workers. Ducey is seeking additional funds to help alleviate state budgetary issues, particularly in education funding. “Modernizing” compacts may be a way to get more money from the tribes. “I don’t know if additional revenue to the state is driving a lot of this or whether it’s driving some of this. But it’s a driver,” says a source familiar with the talks. Ducey and the Republican state legislature have vowed not to raise

Revenue-sharing provisions are crucial to the negotiations. Tribes have in the last decade contributed about $1.2 billion to the state, roughly half of which has gone to education. OCTOBER 2017 www.ggbmagazine.com 113

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taxes, which ties additional funds for education to getting a bigger share of tribal casino revenues. Tribes contend they need to balance the benefits of compact concessions with additional payments to the state. Tribes now pay 1 poercent to 8 percent of net win to the state and local governments, or an average of 5.5 percent. “The issue is always, ‘Do we get enough games and get enough expansion to pay for the revenue sharing?’” a source says. “Is there enough money in the equation to make this work? Trying to keep revenue sharing down to a decent level will be the trick. “That and creating a provision that will allow the tribes and the state to come together and reach agreement about new games.” Tribes will likely seek both an increase in machines, blackjack and poker tables and Las Vegasstyle wagering that is now prohibited, such as dice, baccarat and roulette.

“We’ve settled our disagreements. We’re ready to move on. We’re ready to work together. I think all the tribes are unified now. We’ve decided to move forward.” —Tohono O’odham Indian Nation Chairman Edward Manuel

Growth On The Horizon Tribes in 2016 won $1.87 billion, according to the Arizona Department of Gaming, far below the record $1.94 billion won in 2007. But revenue-sharing payments for the last two quarters increased 4.2 percent to 4.8 percent, according to state officials, or roughly $26 million each period. Economist Alan Meister, author of the Indian Gaming Industry Report, says a 5 percent revenue jump in 2015 marked the fifth straight year of growth. Arizona is a reflection of what is happening throughout the nation. The National Indian Gaming Commission, a federal oversight agency that audits tribal casinos, said the industry generated $31.2 billion in 2016, a 6.9 percent jump over the previous fiscal year. Expansion of non-gaming amenities such as hotel rooms, restaurants, retail and entertainment is expected to fuel additional growth in Arizona. But a big chunk of new industry dollars will come from Desert Diamond, located in a relatively untapped Phoenix-area casino market just a mile away from the University of Phoenix stadium, home of the NFL’s Arizona Cardinals. Officials with the Department of Gaming anticipate a sharp jump in

revenue from the massive project. But just how much is difficult to gauge. “They’re a Class II casino, and even though they’ve been approved for Class III their plans are a little bit more long-term,” says Aiden Fleming, government and tribal relations manager for the Department of Gaming. “We have zero oversight of the West Valley. I wish I could provide you more information, but right now we’re flying blind until they get Class III machines in there. “We don’t know what they’re going to build. We haven’t had the discussions of how many machines they’re going to have or anything like that. We don’t know until they actually have something to show us and something we can approve. “Until then, everyone here is kind of on standby.”

Breaking Ground Work will begin by the end of the year on a $400 million, 1 million-square-foot resort with five restaurants, bars and a full-scale casino that will be more than double the size of the current facility. Details of the eventual build-out of the resort have not been disclosed. But the potential is for a massive development that will, in turn, create a ripple of hotels, restaurants and entertainment in the West Valley area. Gary Sherwood, a former Glendale councilman ousted in a recall election for his support of the project, said a number of major developers approached city officials when they learned of the Tohono O’odham project. “Some of projects are contingent on West Valley Resort; the others, I think, the project would give them a boost,” Sherwood said in a 2015 interview. The Glendale council initially opposed the project, but now embraces the prospects of jobs and economic growth. The tribe will pay the city $26 million over 20 years for public safety and infrastructure improvements. The temporary casino will employ 500 workers with the build-out requiring 3,000 workers. “We look forward to the future phases of construction and build-out of the resort,” a city statement reads. A project summary by Analysis Group and Spectrum Gaming solicited by

Arizona is a reflection of what is happening throughout the nation. The National Indian Gaming Commission, a federal oversight agency that audits tribal casinos, said the industry generated $31.2 billion in 2016, a 6.9 percent jump over the previous fiscal year. 114 Global Gaming Business OCTOBER 2017

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“We are hopeful the settlement paves the way for the Tohono O’odham Nation to join with other tribes and Governor Ducey in discussions to improve and modernize Arizona’s tribal gaming compacts.” —Delbert W. Ray Sr., President, Salt River Pima-Maricopa Indian Community

Tohono O’odham says the resort could generate $300 million in annual revenues, create a ripple of development and have a minimal impact on local casinos. Seven Phoenix-area casinos will likely see only a 2.5 percent dip in aggregate gambling revenue, according to the summary. Although existing urban casinos are located in the East Valley, the Gila River and Salt River Pima-Maricopa Indian communities—operators of five nearby casinos—believe the impact will be more serious than Analysis Group/Spectrum predictions. But the Phoenix area is regarded by most industry analysts as a destination with room for gambling growth. “Phoenix is unique in that it was a resort destination market before gaming ever happened,” says Matthew Robinson, principal of KlasRobinson consultants. “It is an underserved market. It can serve a lot more. “The other tribes with casinos in that market are going to be impacted,” he says. “They are going to continue to be very successful. But anytime you grow the market there’s going to be some impact. There’s a pie there and you’re further dividing up the pie.” For Tohono O’odham, the project represents potential government rev-

enue to help the nation fund roads, utilities and other infrastructure improvements to a largely impoverished reservation extending from the Mexican border to just south of Phoenix and Maricopa County. “This is a day the nation has long been working toward,” Manuel says. “The nation is eager to continue with its West Valley investment to create thousands of new jobs, positive economic development, and a world-class casino resort that all of Arizona can be proud of.” The Glendale project is expected to dwarf revenues from the tribe’s three other largely rural casinos, helping fund needed government services to some 28,000 citizens. The three casinos generate about $68 million a year. “That’s one of the reasons why Congress created IGRA—to allow the tribes to address their needs, which the federal government never provided,” Manuel says. “That’s what we’re working toward, addressing infrastructure projects such as our roads, our power and water systems. Those are all major projects that require a lot of money. “There are so many needs we have on the nation. Our educational needs, health care needs. We are not close to the state and the rest of society.”

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“Geographical restrictions against new casinos placed upon the Tohono O’odham Nation represent a victory for every Arizona tribe concerned with protecting what gaming means to our people and our economies.” —Governor Stephen Roe Lewis, Gila River Indian Community

Settling Differences Construction in the early 1960s of the Painted Rock Dam on the Gila River flooded the San Lucy District of the Tohono O’odham Reservation, rendering some 9,880 acres unusable. The Gila Bend Replacement Act of 1986, co-sponsored by Arizona Senator John McCain, provided the tribes with funds to replace the lost acreage. It specified that the tribe buy land in “Pima, Pinal or Maricopa” counties, the latter of which includes Phoenix. The act also states the land “shall be deemed to be a federal Indian reservation for all purposes,” which the courts and Interior later construed to include casinos. The tribe in 2009 announced its plans to develop the Glendale casino on 54 acres of unincorporated land. The land was purchased in 2003 through a shell corporation, a common practice used to conceal the identity of the buyer.

116 Global Gaming Business OCTOBER 2017

State and tribal officials—particularly the leadership of the Gila River and Salt River tribes—reacted angrily to the news. They claimed Tohono O’odham was duplicitous, if not dishonest, in working with tribes negotiating a 2002 tribal-state regulatory compact and crafting an initiative campaign that barely won voter support largely on a pledge there would be no new Phoenix casinos. The nation contributed $1.8 million to the voter drive that today gives 16 tribes the exclusive right to operate 24 Las Vegas-style casinos. “They looked us in the face and lied,” Diane Enos, former president of the Salt River tribe, said of Tohono O’odham. “They broke faith with us and the voters of Arizona.” Tohono O’odham denies any such promise was made. “Anybody who has been paying close attention to the issue has every right to be upset with Tohono O’odham,” says a source familiar with the ballot initiative who requested anonymity. “They did break their word to

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the other tribes. They did sit by and do nothing while a campaign was being put together that promised no new casinos in the Phoenix area. “It’s not so much that they lied,” the source says. “They didn’t make a material disclosure that everybody feels they were obligated to make.” The 9th U.S. Circuit Court of Appeals last year affirmed a lower court ruling that the project complied with federal law and the state compact, which did not specify no casinos were to be built in the Phoenix area. It was the latest in a series of legal victories for Tohono O’odham. “I put a pox upon the state of Arizona and a pox upon the legal counsel for the Arizona tribes for not reducing the understanding the tribes had into writing,” the source says. “The compact does not prevent Tohono O’odham from moving forward.”

Mediating the Dispute Tribes feared the broken trust rising out of the Glendale project would impact governmental relations between state officials and Arizona’s indigenous communities. Lawyers and lobbyists for Tohono O’odham says those fears are exaggerated. Relations between the various tribes remain strong. But unity was seriously impacted when Gila River and Salt River pulled out of the Arizona Indian Gaming Association, citing the group’s lack of leadership. Eventually, however, tribes realized the Glendale battle was lost in the courts. That awareness led to the November accord with Ducey to amend the compacts, launch renegotiations on new agreements, limit new gambling in the Phoenix area and declare a truce in the war over the Glendale project. Tohono O’odham, perhaps aware provisions in the existing compacts limit gambling and potential expansion of the West Valley resort, agreed in

May to join in the negotiations, pledging not to pursue additional casinos in the Phoenix area. Governor Stephen Roe Lewis of Gila River said “geographical restrictions against new casinos placed upon the Tohono O’odham Nation represent a victory for every Arizona tribe concerned with protecting what gaming means to our people and our economies.” “We are hopeful the settlement paves the way for the Tohono O’odham Nation to join with other tribes and Governor Ducey in discussions to improve and modernize Arizona’s tribal gaming compacts,” Salt River Pima-Maricopa President Delbert W. Ray Sr. said in a statement. “We welcome the nation’s participation in this effort.” “The Indian gaming industry in Arizona provides $100 million a year to fund education, trauma centers, tourism and wildlife,” President Russell Begaye of the Navajo Nation said in a press release. “The new negotiations with Arizona Governor Ducey will keep more Arizonan dollars here within the state to keep funding these important programs.” The agreement also puts an end to the possibility of congressional legislation to prevent Tohono O’odham from putting a casino on land it acquired in the federal settlement. Tribal leaders said the “Keep the Promise” legislation sponsored by McCain would have established an alarming precedent. “I continue to oppose the air-dropping of Indian casinos on land that is not contiguous to an existing reservation,” McCain said in a prepared statement. The Arizona Republic editorialized that settling the dispute was a “winwin” for the state. Tohono O’odham had a solid legal case, the newspaper said, and the state was wasting resources in continuing to pursue litigation. “Governor Doug Ducey’s negotiating skills will ultimately determine exactly what Arizona won,” the newspaper said.

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TABLE GAMES

Behind the Scenes Making a game a success depends on a team of people, not just one inventor Roll them cases out and lift them amps / Haul them trusses down and get ‘em up them ramps / ’Cause when it comes to moving me, you know you guys are the champs.

ackson Browne, a legend for writing and singing “Doctor My Eyes,” “Somebody’s Baby” and “Running on Empty,” and perhaps an even bigger legend for wooing and dating Daryl Hannah—remember, this was in the ’80s—would always conclude his live shows with a tribute to the folks that put him on stage. Like, literally the folks that put him on stage. “The Load Out” was a six-minute salute to the guys and gals behind the scenes. “The first to come and the last to leave,” as he put it. The ones that drive the tour bus. The ones that set up the gear. The ones that go scrounging around after a show in Chicago (“or Detroit, I don’t know, we do so many shows in a row”) trying to hunt down a guitar string or a saxophone reed. This is such a beautiful song, as much for its melody as its message. Gratitude. Appreciation. Thanks. It’s easy to observe a finished product and ignore how it was made. Consider the pencil. Or the smartphone. Or the monthly column of a popular trade magazine. Or the new table game. When you see Zombie Blackjack or Mystery Card Roulette or Blazing 7s Blackjack, you might know it was created by someone like—or in these cases, someone exactly like—Geoff Hall, Mark Jones or Ryan Yee. But behind the headliner is a menagerie of people, smart people, talented people; people who did for them what Browne’s crew did for him. Without them and their efforts, there are no games. Or if there are, they are unproven, unprotected, unattractive, unsold, unapproved and unviable. And now, let the roadies take the stage:

Analysts Inventors are inventors and analysts are analysts, and never the twain shall meet. Well, except for a few exceptional exceptions (see: Ko, Stanley; Shackelford, Michael; and Frome, Elliot). Most game inventors, on the other hand, couldn’t decipher the ciphering for anything more complicated 118 Global Gaming Business OCTOBER 2017

than a two-card side bet or a one-die dice game. Big, complex undertakings (Fortune Asia Poker, Money Suit 31, Double Draw Poker, etc.) require a combination of skills: math as well as computer programming, the like of which you won’t find just anywhere. Lawyers The first lesson of dealing with lawyers—after Shakespeare’s recommendation, of course—is brevity. Such is life with a profession that charges by the 10th of an hour. To wit: Attorneys, particularly those specializing in the soft sciences of intellectual property, are critical to the game-creation process. Attorneys help inventors file patent applications to protect any novel ideas, as well as secure trademark rights for the name. They put the “proprietary” into proprietary table games. See? That took less than six minutes. That’s pro bono, baby! Artists Artists and graphic designers, those conjurors of color and texture, work in the background to create the, well, background for these new games. And as you may have noticed, much of the creations today are exquisite. And getting more so. Getting more fun, as well. Look for this to continue. Brand recognition, which begins and ends with the artist, will play an increasingly important role in this business. That means more and more elaborate designs. Brighter hues, watermarks, slot-type signage. These are all coming soon to a casino near you. Account Executives As much as these games don’t design themselves or analyze themselves or protect themselves, they don’t sell themselves either. And every Mississippi Stud or High Card Flush you see in a casino was at one point pitched to the head of table games by an account executive. Selling games isn’t easy. There are a hundred reasons for not taking a chance on something new, and the best salespeople are the ones who overcome

By Roger Snow

those concerns through the building of relationships and the establishment of trust. Compliance Officers “Nuclear energy… Pharmaceuticals … Gaming. “Uh, heavily regulated industries?” Ding, Ding! Before the first bet is placed and the first card is dealt, new games require approval from the local regulatory body. That could be Nevada or Atlantic City or Singapore or Macau. It could be a card room in Los Angeles or a tribal casino in Florida. The greatest game—or any casino product, for that matter—is worthless without regulatory approval. And thus, the responsibility of securing that into the hands of compliance officials, the people who work diligently to navigate the many and myriad rules or the many and myriad markets around the world. Trainers The last group on our curtain-call list is, coincidentally enough, the last group to see a new game before it goes live. There are people with the job of visiting each property and teaching the rules and procedures of Whoop Ass Poker (real game, real name), Keep ‘Em Coming (real game, real name) or Bootylicious Blackjack (OK, that one’s made up) to the staff. Sounds easy? Well, it’s not. Casinos have dozens, if not hundreds, of dealers. Plus floor supervisors and pit bosses and surveillance operators. And they’re spread across three shifts, which makes training a 24-hour on-call gig. And the trainers, from a travel standpoint, truly live the life of a roadie. Always on the hop. Sacramento one day, Seattle the next. Then off to Cripple Creek, Colorado or Mount Airy, Pennsylvania. Quick ins, quicker outs. It’s as if the final stanza of “The Load Out” was written for them: ‘Cause when that morning sun comes beating down / You’re gonna wake up in your town / But we’ll be scheduled to appear a thousand miles away from here. The views and opinions expressed in this article are those of the author and do not necessarily reflect the views and opinions of Scientific Games Corporation or its affiliates.

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CUTTING EDGE

Getting the Edge Product: EdgeX Cabinet Manufacturer: Aristocrat Technologies

any of today’s slot cabinets are not immediately conducive to today’s socially active and mobile-connected players. The problem could be solved by the innovative EdgeX cabinet from Aristocrat. Aristocrat’s EdgeX cabinet has a broad audience appeal across demographics with a form factor that reaches out to individual-style or social-style players with diverse single- or dual-player game formats. The EdgeX cabinet has a completely new, eyecatching design featuring dual 43-inch landscape curved LCDs that provide personal panoramic game views with maximum horizons. The LCDs are ultra HD and 4K-ready, providing true-to-life play action. The sweeping 43-inch LCDs also help to create an ultra-large gaming feel that banks in a standard gaming space, plus EdgeX incorporates the latest advancements with a new graphics card

that opens the potential for feature-rich creativity and increased player enjoyment. Adding to the social component is a new dual-player virtual button deck for two-play operation. Further, the virtual button deck allows for virtually unlimited messaging opportunities, while providing the convenience of maintenance-free operation. The sensory experience extends to EdgeX’s stereo audio plus ported subwoofer along with individually controlled LED edge lights. What’s more, its ergonomically designed sound bench invites single or dual play, appealing to individual-style or social-style players. A built-in and easily accessible USB charge port keeps players charged and empowered to stay connected to the game and mobile phone, and free to share their fun new gaming experience across their favorite social channel. The cabinet is launching with The Walking Dead 3 single-site progressive game, based on the TV show’s seasons 6 and 7. For more information, visit aristocrat-us.com.

Stick Shift or Automatic? Product: Reflexive Rewards Manufacturer: Table Trac

eflexive Rewards, part of Table Trac’s CasinoTrac system, offers casino marketing flexibility with a high degree of automation and manual control. Deployed exclusively in CasinoTrac systems, recent approvals in the states of Maryland and Nevada have made this operations automation tool available to hundreds of new locations. Based on casino-configurable parameters, player analysis and rating decisions are made hourly using weighted ADT and separate weighted total theoretical averages over multiple distinct measurement periods. These feed the Reflexive Rewards auto-tiering algorithm. The unique formula logic does not overlook the value of frequent, seemingly unremarkable players while almost instantly recognizing and rewarding the early visits of high-potential-value new arrivals. In automatic, the combination called Reflexive Rewards takes it further by giving definition to enforcement of eligibility rules in cascading priority, automatically selecting appropriate offers for each guest based on ADT, segmented total theo wins, total visits, visit frequency and geo distances traveled. Reinvestment rules are enforced while the system internally performs all the calcu-

lations making cycle times for offer re-evaluation hourly, 24/7. In manual, the casino can export player rating data in familiar formats to apply their externally based analysis and produce offer lists in the traditional manner. List imports load the offers to player accounts and promote the offers through email, text, on kiosks and at player screens on machines. Offers are still protected with the system’s internal verification of offer eligibility before ultimately deposited into guest accounts for redemption. Using a combination of the Reflexive Rewards modes is highly effective and totally supported by the system. For more information, visit tabletrac.com.

OCTOBER 2017 www.ggbmagazine.com 119

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MARKETING

The Pillars of a VIP Experience

How to maximize brand, environment, experience and culture in your casino By Blaine Graboyes

n a previous article, we discussed some thoughts on the “Casino of the Future” and posited seven considerations for the design and evolution of casinos—seamlessness, technology, video games, “lightness,” experiences, brands and hospitality. A key differentiating factor to the casino experience, both today and in the future, is the unrivaled ability for casinos to provide patrons with a unique and special experience, a VIP experience. The level of amenities and hospitality at many casinos today is not found in any other industry or venue. Which brings up the question: What truly defines a VIP experience? This article proposes four pillars from which to create a VIP experience: brand, environment, experience and culture. These four pillars reflect extensive research and conversations both inside the casino industry and more broadly across customer-centric businesses such as retail, entertainment, restaurants and technology. For today’s businesses, everything does, or should, start with the brand itself. There are many ways to define and position a brand, though one of the best starting points is as Seth Godin states: “A brand is the set of expectations, memories, stories and relationships that, taken together, account for a consumer’s decision to choose one product or service over another. If the consumer doesn’t pay a premium, make a selection or spread the word, then no brand value exists for that consumer.” Godin’s description touches on some key points, including expectations, memories, stories and relationships. Other considerations may also include value and authenticity. Many casinos have developed highly acclaimed and valuable brands and are in a position to evolve those brands to further appeal to the upcoming generations of consumers. This brings up the importance of community, and how casinos can continue to engage with their current customers while working to attract a new, younger and differentiated audience. Early adopters of eSports at casinos, such as the Downtown Grand in Las Vegas, have proven that innovative programs can be run alongside tradi-

tional casino operations without disrupting or displacing existing patrons—a critical concern as casinos leverage their infrastructure to appeal to gamers and a more tech-savvy audience. This leads us to the second pillar of the VIP experience—the environment. Casinos have invested billions of dollars in creating engaging and one-ofa-kind destinations that attract both locals and destination customers. Properties are often differentiated by themes (such as pirates, circus, destination cities) or by the level of extravagance (think Wynn or Bellagio). Underneath these differentiators are core attributes such as appeal, cleanliness, quality and efficiency that casinos must strategically juggle for a property to be successful.

are often “Properties differentiated by themes (such as

120 Global Gaming Business OCTOBER 2017

pirates, circus, destination cities) or by the level of extravagance (think Wynn or Bellagio). Underneath these differentiators are core attributes such as appeal, cleanliness, quality and efficiency that casinos must strategically juggle for a property to be successful.

”

Now the opportunity arises to leverage these world-class properties to attract and retain new generations of gamers who’ve grown up with technology as a part of the fiber of their everyday life, including interactive entertainment and high-tech connectivity. That’s where the concept of experience becomes paramount. While always evolving, casinos have historically provided a meaningful experience to a core cus-

tomer base, though it increasingly has included those seeking a broader entertainment experience. To attract an audience of gamers and younger patrons to the casino floor, operators are looking to leverage other areas outside the casino floor—particularly via new technologies and trends such as video games, eSports, virtual reality, social media and other interactive experiences. Further opportunities include a greater level of unique personalization, likely provided through smartphone applications—customizing and managing your experience from booking through your stay to sharing after departure. Finally, we take a look at culture. While culture is usually intertwined with the brand, it’s interesting to consider the components of an authentic culture that appeal to the next generation of casino patrons. Brand loyalty is a powerful “magnet” that attracts customers to want to repeat an experience that meets or exceeds their expectations. Conversely, loyalty from the brand towards the customer is key, and casinos have the ability to leverage their extensive and powerful loyalty programs to facilitate a genuine two-way communication and better understand patrons’ interests and desires, customizing loyalty tiers and offers to specific segments. This creativity allows for differentiation among casinos and elicits delight from customers. Providing a responsive dynamic is also critical—whether digitally via social media or physically on property—as one of the best ways to make someone feel like a VIP is to be responsive to their needs. In summary, casinos are uniquely positioned to provide a powerful offering to the next generations of customers, just as they have to prior generations. No industry is more experienced at delivering a level of hospitality and a vast array of amenities. Casinos have developed world-class brands that communicate their personality and deliver on visitor expectations and create memories, stories, and relationships that live on long after the customer leaves the casino.

Blaine Graboyes is CEO of GameCo, Inc.

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OPERATIONS

The Millennial Problem Revisited

Are rising room rates already impacting gambling budgets and visitor volumes? By Jeff Hwang

ast time, we discussed the possibility that the literal destruction of the lowend hotel supply—along with the rapid rise in hotel room ADRs (average daily rate)— on the Las Vegas Strip could serve to price out many millennials and stunt visitor growth into the future, where: 1. Virtually every new Strip project built or proposed in the current millennium has been 4or 5-star supply. 2. We imploded the low-end supply (starting with the Dunes in 1993) to make room for the new projects, thus eliminating low-end supply from the Strip entirely. 3. Las Vegas visitor volume has nearly doubled since 1993. The result has been what would seem to be a rising price floor and a grossly disproportionate upward shift in the composition of the Strip hotel supply. And at a minimum, the overwhelming probability is that the low end of the Las Vegas visitor market is being increasingly underserved, particularly on the Strip itself. But might there perhaps already be clues that rising room-related costs are already impacting both gaming volumes and visitor volumes?

enue as a percentage of total revenue for both the Strip and Downtown Las Vegas. On the Strip, gaming accounted for 34.2 percent of total spend in 2016, down from 57.8 percent in 1990. Meanwhile, gaming was 49.3 percent of revenue in Downtown Las Vegas in 2016, down from 67.6 percent in 1990.

Las Vegas: Departmental Revenue as Percent of Total Year 1990 1995 2000 2005 2010 2011 2012 2013 2014 2015 2016

Las Vegas Strip Gaming Rooms 57.8% 16.8% 53.8% 19.6% 45.9% 23.4% 40.9% 26.1% 39.0% 23.4% 37.9% 24.3% 36.4% 25.3% 37.0% 25.3% 36.8% 26.1% 34.9% 26.7% 34.2% 28.1%

Downtown Las Vegas Gaming Rooms 67.6% 11.3% 67.1% 11.3% 61.1% 13.2% 59.2% 15.4% 56.1% 15.0% 55.1% 15.6% 54.2% 16.3% 53.7% 16.6% 52.1% 17.9% 50.4% 18.6% 49.3% 19.2%

Source: UNLV Center for Gaming Research

ARE RISING ROOM COSTS EATING VISITOR GAMBLING BUDGETS? As I’ve suggested before, the two most likely impacts to casino gambling volume in the U.S are: 1. A fundamentally maturing market for casino gambling. The result of widespread casino expansion across the U.S. since 1989. 2. Declining gambling value. A function of the fact that the casino house advantage has been on the rise across the industry for the past two decades. But with particular regard to destination markets—most notably the Las Vegas Strip— what has been completely overlooked is the potential impact that rising room-related expenses may be having on gambling volumes. The table to the right shows both the steady decline in gaming and the increase in room rev122 Global Gaming Business OCTOBER 2017

Certainly other categories not in the table have been factors: On the Strip, “Food” has crept up from 11.2 percent of total Strip revenue in 1990 to 16 percent in 2016, while the “Other” category encompassing growing convention and other entertainment revenue climbed from 8.1 percent in 1990 to 14.5 percent in 2016. Downtown, the “Beverage” category was up to 9.6 percent of revenue in 2016, from 5.1 percent in 1990 (probably thanks to a combination of the now-constant stream of live music on Fremont and the popular re-development of the surrounding area, putting more non-tourist bodies in the area). But by far the category with the biggest impact to gaming revenue has been room expense, which on the Strip was up to 28.1 percent of

revenue in 2016 from 16.8 percent in 1990, and Downtown was up to 19.2 percent in 2016 from 11.3 percent in 1990. This makes sense in that room expense is a comparably fixed cost—it is effectively a cost of entry, and the one expense hardest for visitors to avoid. We already know about the rise in ADRs on the Strip (which, incidentally, understate the rise in room-related expenses, as they don’t factor increasing resort fees or room taxes, and—more recently—parking). But if you thought Downtown was safe, Downtown hotel room ADRs were up 36.5 percent from $48 in 2010 to $65.53 in 2016, and through June 2017 were up to $69.32 on the year. Here’s the point: Rising room expenses don’t seem to produce proportionately wealthier visitors so much as they seem to be eating directly into visitors’ gambling budgets.

LAS VEGAS VISITOR VOLUMES It also seems a strong possibility that the rise in room-related expenses is already impacting visitor volumes, as tourist visitation is not quite as robust as the overall visitor numbers might suggest. From 2000 to 2016, convention attendance climbed 63.8 percent to 6.3 million visitors. But over the same time frame, non-convention visitors—tourists, including a range of visitors likely to be most sensitive to rising room-related expenses—increased only 14.5 percent to 36.6 million, or less than 1 percent per year. And while convention attendance jumped 13.4 percent in 2015 and 7.1 percent in 2016, we’re already seeing potential signs of sustained weakness among non-convention visitors: Nonconvention visitors only increased 1.4 percent in 2015 and 0.6 percent in 2016. And through June 2017, non-convention visitors were down 1.4 percent on the year.

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CONCLUSION Las Vegas Visitor Volume Year 1990 1995 2000 2005 2010 2011 2012 2013 2014 2015 2016 2017*

Total Visitors Volume 20,954,420 29,002,122 35,849,691 38,577,717 37,335,436 38,928,708 39,727,022 39,668,221 41,126,512 42,312,216 42,936,109 21,181,071

Change

4.27% 2.05% -0.15% 3.68% 2.88% 1.47% -0.78%

Convention Attendance Volume Change 1,742,194 2,924,879 3,853,363 6,166,194 4,473,134 4,865,272 8.77% 4,944,014 1.62% 5,107,416 3.31% 5,194,580 1.71% 5,891,151 13.41% 6,310,616 7.12% 3,589,027 2.12%

Source: Las Vegas Convention & Visitors Authority *Year-to-date, through June 2017

Non-Convention Visitors Volume Change 19,212,226 26,077,243 31,996,328 32,400,523 32,862,302 34,063,436 3.66% 34,783,008 2.11% 34,560,805 -0.64% 35,931,932 3.97% 36,421,065 1.36% 36,625,493 0.56% 17,592,044 -1.35%

Again, at a bare minimum, the clear reality to me is that the bottom end of the Las Vegas visitor market is being increasingly underserved. However, virtually all of the discussion over the past few years has been about generational quirks, when the first, second and third questions we need to be asking are: Do you like rising house advantages? Do you want more fees, including higher resort fees, higher room taxes, and parking? Do you want fewer affordable room options? And so far the standard responses to the first two questions within the industry have been “They won’t care” or “They can’t tell the difference,” while the third question hasn’t even been asked yet. Now’s probably a good time to come up with better responses.

Jeff Hwang is a game developer and president of High Variance Games LLC. Hwang is also the all-time best-selling author of Omaha poker books. Follow Hwang on Twitter @RivalSchoolX.

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Gaming = Tobacco?

aying that the U.K.’s football teams must join in an effort to fight problem gambling, officials for the country’s Labour Party are calling for a ban on “shirt” sponsorships of English Premier League football clubs by bookmaking firms. The proposal comes from Labour Deputy Leader Tom Watson, who said he wants U.K. football to “play its part in tackling the country’s hidden epidemic of gambling addiction.” Watson told the Guardian newspaper that the party will seek to cut “the power of gambling firms” and limit exposure to gambling ads to minors. He pointed to current sponsorships on jerseys of nine English Premiere football clubs out of

Caesars is one of the last sports books in the state to launch an app, but it still has at Caesars Palace one of the most luxurious VIP sections of any Vegas book

Caesars Readies Nevada Sports Betting App

C Bookmaking firms are currently shirt sponsors for nine English Premier League football clubs

20 in the league. “Shirt sponsorship sends out a message that football clubs don’t take problem gambling among their own fans seriously enough,” Watson told the paper. “It puts gambling brands in front of fans of all ages, not just at matches but on broadcasts, and highlights packages on both commercial television and the BBC.” The U.K.’s Football Association does ban gambling ads among youth teams, but Watson said the policy does not go far enough. He said the party will propose advertising restrictions similar to those in place for tobacco products. “Just as tobacco companies were banned from sponsoring sporting events and putting their logos on branded goods because of the harm smoking can cause,” he said, “it’s right that we recognize the harm problem gambling does and take gambling logos off football shirts.” Watson’s comments come as the government is to release a review of fixed odds betting terminals and advertising standards and practices in the country next month. Previous findings by the U.K. Gambling Commission have also noted a rise in problem gambling in the country. 124 Global Gaming Business OCTOBER 2017

aesars Entertainment is playing catch-up, but has finally begun the launch of a sports betting app in Nevada. A report at legalsportsreport.com confirmed that a soft launch of the app was scheduled for early last month with a full rollout later this year. Miomni has partnered with Caesars to provide the technical platform for the app. The company specializes in casino, race and sports betting technology and was approved in the state by the Nevada Gaming Commission in 2014. Station Casinos and others already use the Miomni technology. Las Vegas handicapper Bryan Leonard first broke the news on Twitter, and the website confirmed the launch with Caesars Entertainment Director of Specialty Games Frank Kunovic. Exact details on the app were not released, but according to the report, players will have to be 21 and accounts must be created in person at Caesars properties. Players will also have to be physically within Nevada’s borders in order to place a wager. Miomni’s partners use its “Mi Location” technology for geolocation, the website reported.

U.S. Congress May Consider Cryptocurrency Protection Bill

he online site the Daily Caller reports that at least three U.S. Congress members are preparing a bill to protect virtual currencies such as Bitcoin and have them treated like U.S. currency.

Bitcoin Cash recently hit a record high of nearly $1,000, and Bitcoin surpassed $4,000. According to the Daily Caller, “various members of Congress are looking at the compliant capabilities of AML Bitcoin,” in a move aimed at making cryptocurrencies that meet certain criteria a popular alternative to the U.S. dollar. The initiative, the website says, is expected to gain support from libertarian members of Congress, but will likely be opposed by the U.S. Treasury. The website, citing an unnamed source, said at least one Republican member of the Senate and two Republican congressmen are involved. The three lawmakers reportedly asked not to be identified due to the complexity of the proposal.

PokerStars Readies Australian Exit

okerStars says it will finally exit the Australian market by mid-September in the face of new gaming regulations in the country that did not legalize online poker. And two more online gambling sites—The Mansion Group and Genesis Global Limited—have left the Australian

market in the face of new gambling regulations there. Gambling firms that have already exited the market include PokerStars, 32Red, PartyPoker, 888Poker and Vera&John. The new gambling laws—called the Interactive Gambling Amendment Bill and passed by the country’s Senate in August—essentially ban online poker as well as in-play sports betting. Legislators say the new laws essentially close a “gray” market in the country for both types of betting. While the law allows online sports books to be licensed, by not recognizing online poker and casino games as legal, it essentially bans both types of online play as those operators cannot se-

Avai

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cure licenses. Unlicensed sites accepting Australian players would face steep fines. The law also includes a number of consumer protections such as regulations against operators offering lines of credit to gamblers. PokerStars has said repeatedly that it would probably leave the market if the rules went into effect. The company, part of the now-called Stars Group, did not name an exit date, but said in an email to Australian players it would likely leave the market by the middle of September as the new rules go into effect. “We’ve been aware of this day coming. We’re proud to have seen the Australian poker community grow so strong over the last decade,” the email said.

New Jersey Legalizes DFS

overnor Chris Christie last month signed a bill legalizing daily fantasy sports in the state. The industry will be regulated by the state Division of

Gaming Enforcement. A tax rate of 10.5 percent will be imposed on the profits of DFS companies earned from players in the state. DFS officials esNew Jersey Governor timated it will provide Chris Christie $6.6 million in tax revenues. DFS companies praised the bill, calling it one of the best of the 16 states that have approved DFS wagering. “The law establishes multiple layers of oversight, placing New Jersey at the forefront of consumer protection nationally, and creating a new source of tax revenue with major potential for growth in the state,” said Marc LaVorgna, a spokesman for DraftKings and FanDuel, in a statement. The law allows DFS companies to partner with New Jersey casinos but does not require it.

Aristocrat to Acquire Social Gaming Company Plarium

ustralian slot manufacturing giant Aristocrat Leisure Limited has entered into a binding agreement to acquire 100 percent of Israeli social gaming developer Plarium Global Limited at a cost of US$500 million. The acquisition follows a similar move for social casino company Product Madness in 2012, and will see the percentage of annual revenue generated from Aristocrat’s digital sector rise from 14 percent to 22 percent. Plarium is a privately owned free-to-play mobile, social and web-based game developer based in Israel with 1,200 employees spread across five studios and offices in Israel, Europe and the U.S. It has nine key monetized titles, led by Vikings: War of Clans, which is regularly ranked among the world’s top 10 grossing strategy games.

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GOODS&SERVICES IGT, SCI GAMES CONCLUDE HISTORIC CROSS-LICENSING DEAL

he world’s two largest slot and systems makers, International Game Technology and Scientific Games, have joined forces in a historic agreement to cross-license a number of their prized game patents. The deal, whose financial terms were not disclosed, allows the two companies to offer play features from each other’s portfolios as well as those of other members of the IGT slot game features pool. Between them, IGT and Scientific Games have the largest stables of patented slot features in North America. “We have worked with most of the major slot manufacturers to execute game feature IP cross-licensing agreements,” said Renato Ascoli, IGT CEO North America gaming & interactive. “This enables the entire industry to benefit from IGT’s game patent portfolio, which is the largest in North America, and also the portfolios of our cross-licensing partners. We’re very pleased that this program has come to fruition and delivered such significant results for IGT.” In 2015, the two were the subjects of multibillion-dollar mergers that consolidated a large portion of the gaming equipment sector and also united lotteries and traditional casino games under single companies. GTECH Holdings acquired IGT in a $6.4 billion transaction and lottery giant Scientific Games spent $5.1 billion to purchase Bally Technologies a year after buying WMS Industries for $1.4 billion. The announcement of the licensing agreement came just a month before Global Gaming Expo kicks off in Las Vegas, the industry’s largest trade show and one traditionally dominated by IGT and Bally.

OCTOBER LAUNCH FOR MGM GAMESENSE

GM GameSense, a new responsible gambling program, will launch in October, MGM Resorts International recently announced. Officials said the company’s 77,000 U.S. employees will

126 Global Gaming Business OCTOBER 2017

start training in October. MGM Executive Vice President Alan Feldman said, “We should be in the forefront of defining and promoting responsible gaming. I’m not suggesting that we don’t want to help anyone who’s in crisis, because clearly we do. But defining what someone’s problem is can’t possibly be the realm of casino employees. It’s just not right. This is a tough enough thing to define and to diagnose if you’re a trained therapist, counselor, psychologist or even psychiatrist. This is a very, very tough subject to face.” Developed by the British Columbia Lottery Corporation, MGM GameSense was licensed to MGM for an undisclosed fee. Regulators in Massachusetts, where the company will open a new property in Springfield next year, ordered operators in that state—MGM, Wynn Resorts Limited and Penn National Gaming—to adopt the GameSense program. After reviewing the program, MGM officials decided to introduce it companywide. At first, GameSense will have a physical presence in MGM’s 10 southern Nevada properties, then spread to the company’s casinos in Maryland, Michigan, Mississippi and Massachusetts. Initially, MGM will set up GameSense signage and kiosks and train personnel to counsel players about addictive gambling behaviors. Later, MGM officials hope to integrate GameSense into the company’s Mlife loyalty card program, so players can set limits and be alerted to the amount of time and money they’re spending on gambling. In addition, MGM Resorts International announced it will donate $1 million over five years to the University of Nevada, Las Vegas’ International Gaming Institute to research compulsive gambling using data collected through GameSense. Brett Abarbanel, director of research at the institute, will coordinate the effort. The institute will share its findings with compulsive gambling researchers at the University of British Columbia and Harvard University. According to addiction experts, about 2.9 percent of the adult gambling population—or 2.5 million players—have a compulsive gambling disorder; 3 million more are considered problem gamblers and 15 million more are at risk. In Nevada, an estimated 2.2-3.6 percent of players have some form of addiction.

KONAMI JOINS NEW PRODUCT ADVISORY PANEL

ameCo, Inc., producer of the skill-based Video Game Gambling Machine (VGM), and leading electronic table game supplier Interblock announced that Konami Gaming, Inc., one of the top slot manufacturers in the industry, has joined the companies as a lead sponsor of the recently formed Innovation Adoption Advisory Panel. The Innovation Adoption Advisory Panel (IAAP), which was jointly anSteve Sutherland, president nounced by GameCo and CEO of Konami Gaming and Interblock August 3, was formed as a collective effort to further spur continued innovation in casino gaming product development and commercialization. Industry topics being considered by the IAAP include many disciplines that impact the casino gaming floor including floor optimization, player marketing, game development, demographic-based guest engagement, and casino gaming floor utilization and analysis. The IAAP was expected to release a white paper in mid-September summarizing the group’s insights and recommendations to foster ongoing discussion about best practices for bringing new and innovative products to casino patrons. Steve Sutherland, president and CEO of Konami Gaming, commented, “The formation of the IAAP is an encouraging development that we believe can help play an important role in fostering the adoption of new innovative solutions in the casino marketplace.” “The IAAP was founded with the intent of creating added dialogue and bringing increased awareness to the adoption of new and innovative products across the casino floor,” said Blaine Graboyes, co-founder and CEO of GameCo. “To this end, we are delighted to have Konami Gaming’s support of the group, as their participation further strengthens the IAAP’s ability to accomplish its mission.” John Connelly, global CEO of Interblock, added, “Konami Gaming’s participation and sponsorship of the IAAP further validates the relevance and need for this industry-critical study. Collectively, the three companies share a commitment to

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fostering better understanding of how casino operations can benefit from product innovation that offers players unique, new gaming entertainment experiences.”

NOVOMATIC TO TAKE OVER AINSWORTH EUROPE SALES

ustria’s Novomatic Group, which is finalizing regulatory approvals for its acquisition of a majority stake in Australian slot-maker Ainsworth Game Technology, announced that its Global Sales Division is assuming management of Ainsworth sales in Europe. In charge of the Ainsworth brand introduction, product positioning and direct sales to European gaming operators will be Sonya Nikolova, who has successfully headed the sales for Novomatic in the CEE countries. “Customer satisfaction and building long-term relationships within the gaming industry has been an immense motivation of mine for many years,” Nikolova said. “I am enthusiastic about my new role with Novomatic. I consider it a big responsibility and honor, and one that will complement the quality of services and diversity of products that are delivered to our customers and partners.” The head position for sales in the CEE countries will be entrusted to Roman Czubak, who has a long record with Novomatic and previously held important roles in research and development, project management and sales for the company. Czubak commented, “For me, this appointment means returning to a sales function with the great responsibility of further building and strengthening the Novomatic brand in this core market.”

TWO GAMING SUPPLIERS MAKE INC. LIST

he Rainmaker Group and Casino Cash Trac (CCT) were both repeat occupants of Inc. magazine’s annual 500/5000 list.

The Rainmaker Group, the hotel revenue and profit optimization software supplier, announced that it has again ranked on the Inc. 5000 list of the fastest-growing privately held companies in the U.S. OCTOBER 2017 www.ggbmagazine.com 127

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GOODS&SERVICES for 2017, making it the seventh consecutive year it has achieved this honor. With the addition of 2017, Rainmaker is now part of an elite 2 percent of companies that have been listed seven times, and an even smaller percentage that have received this distinction for seven years consecutively. Rainmaker CEO Bruce Barfield cites a continuously expanding customer base and impressive growth—67 percent in the past three years alone—as the reasons it consistently makes the magazine’s list. “Our continuous growth is a testament to the dedication and commitment of the entire Rainmaker team, and we are extremely honored to receive this distinction for the seventh year in a row,” Barfield said. “We remain dedicated to developing the most advanced technologies to help our clients optimize their revenue and profit, as well as continuing to grow and expand our global footprint.” Rainmaker’s portfolio of revenue and profit optimization solutions consists of guestrev, grouprev, revcaster and revintel. This integrated, cloud-based platform is designed to help hoteliers streamline operations, enhance revenue optimization processes, improve lead performance and drive guest bookings. The company introduced several enhancements to its solutions during 2017, including the new revcaster platform and the addition of group forecasting functionality, which contributed to Rainmaker’s continued growth. For the second year in a row, Casino Cash Trac made the list and was No. 247 this year. Casino Cash Trac also was ranked the No. 15 software company in America, announcing a 1,780 percent increase in revenues. Founded in 2012, Casino Cash Trac specializes in helping casinos with its Casino Audit System (CAS) solution for cage operations and revenue audit automation. It offers full integration with casino management systems, F&B systems, hotel systems and kiosks/ATMs/cash dispensers, all on a single platform for auditing, management reporting, analytics and more.

MGHA ACQUIRES ENTIRE SOUTHERN GAMING SUMMIT

he Mississippi Gaming & Hospitality Association, representing the Mississippi casino industry, recently acquired the 50 percent share that BNP Media Gaming Group had in the Southern Gaming Summit. As

a result, MGHA now has full ownership of the event. BNP still retains full ownership of Bingo World Conference & Expo, which it had managed concurrently with the Southern Gaming Summit since 2010. MGHA Executive Director Larry Gregory said, “We have enjoyed working with BNP in co-producing the Southern Gaming Summit. Today, we look forward to working with our members to bring Southern Gaming Summit back with a new look and offerings to our exhibitors, sponsors and attendees. We are truly excited about the future of Southern Gaming Summit.” MGHA will announce complete details on the timing and agenda of the Southern Gaming Summit later this year. The Southern Gaming Summit was founded by GGB Publisher Roger Gros and former MGHA executive director and now Harrison County, Mississippi, Supervisor Beverly Martin.

VGT’S OVATION PLATFORM AVAILABLE IN OKLAHOMA

ideo Gaming Technologies Inc., which introduced its new Ovation Class II gaming platform at the Oklahoma Indian Gaming Show last month, is now offering five titles for immediate installation in the state’s casinos. The five titles are Wild Texas Coins, Gold Alchemy, Silver Lightning, 8 Wishes and Cockatoo Cash. They were designed for Oklahoma’s Class II market, yet with Aristocrat cabinets that accommodate reel spinnertype games. The Aristocrat cabinet features dual 27-inch HD monitors, digital platforms and fully integrated bonusing, mega symbols and reel spin music and sound effects. VGT President Jay Sevigny commented, “Players throughout Oklahoma have been enjoying VGT reel-spinner games for years. Now we are proud to bring these five titles on the Ovation video platform to Oklahoma, particularly because these titles were customized to Oklahoma players’ preferences.”

TABLE TRAC SYSTEM APPROVED IN NEVADA

able Trac, Inc. announced that its CasinoTrac online management system and cashless wager system has been approved by the Nevada Gaming

128 Global Gaming Business OCTOBER 2017

Control Board’s Technology Division lab for Group 1 and Group 2 non-restricted licensee casinos. According to the company, Table Trac’s Casino Management System is the first new complete slot online management system that incorporates its own approved cashless wagering system to enter the market in Nevada in over a decade. Jeff Siri, president of Club Cal Neva, commented, “Club Cal Neva, which is a Nevada Group 1 licensee, was the first casino to install CasinoTrac in Nevada, and worked closely with Table Trac to complete the Nevada required field trials. I am happy to say we are very pleased with the system. The installation of CasinoTrac was very smooth and the accounting and player tracking have added to our ability to track machine performance and market to our customers.”

RESORTS DEBUTS LIGHTNING GAMING’S ‘SCREAMING LINKS’

ennsylvania-based slot manufacturer Lightning Gaming announced that Resorts Casino Hotel in Atlantic City will debut is “Screaming Links” video slot series, which was approved by regulators under New Jersey First, a state program designed to bring worldwide debuts of slot products to the state’s casinos. According to the manufacturer, Screaming Links offers “creative and unique features with lots of player action.” “We are pleased to partner with Lightning Gaming to launch this new innovative game series,” said Kevin Brady, vice president of gaming for Resorts Casino Hotel. “Our players have responded instantly to the game play and the overwhelming energy of these new slot games. It’s off to a very strong start.” “Being able to bring a new game idea quickly to market through the New Jersey First program has allowed our company to capitalize on market trends of players and needs of operators,” said Brian Haveson, CEO and head of game design for Lightning Gaming. “As we work to innovate and execute with new ideas, launching in Atlantic City is a great venue because you get your games in front of seasoned gamblers that decide instantly whether they are worthy.”

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PEOPLE ATLANTIC CITY’S JIM WHELAN DIES

im Whelan, the former mayor of Atlantic City, died suddenly last month. Whelan recently had surJim Whelan gery for kidney cancer, but was on the road to recovery when felled by a massive heart attack at his home in the city. He was 68. Whelan, who was the current state senator representing Atlantic City, was from Philadelphia originally, but spent his summers in the Boardwalk town. He was a lifeguard in his teen years, became a championship swimmer at Temple University, and later became a teacher in the Atlantic City school system. He ran for city council in the early 1980s, and was elected mayor in 1989. He served three terms as mayor until being defeated in 2001. He then served in the state Assembly from 2005 to 2007, when he was elected to the state Senate. Whelan was elected mayor in a landslide because it had become clear by that time that casino gaming was not the panacea that everyone had assumed it would be, and his platform of using money from the Casino Reinvestment Development Authority (CRDA) to grow the attractions of the city was widely accepted. During his term, Whelan participated in the approval and construction of the Walk, an outlet mall developed by the Cordish Companies in the middle of the city; the connector project that links the Atlantic City Expressway with the Marina district where construction was under way on what would become the Borgata casino, today the most successful casino in the city; and a baseball stadium that is currently vacant, but was home to the Atlantic City Surf of the independent Atlantic League for more than 10 years.

TAHSUDA NAMED TO BUREAU OF INDIAN AFFAIRS

he Trump administration still has not appointed the leader of the Bureau of Indian Affairs, but John Tahsuda, a citizen of the Kiowa Tribe, joined the BIA in September to serve as the principal deputy assistant secretary for Indian affairs. John Tahsuda Tahsuda, an attorney,

is no stranger to tribal issues in Washington, D.C. He worked for the Senate Committee on Indian Affairs under Senator John McCain (R-Arizona) and retired Senator Ben Nighthorse Campbell (RColorado) between 2001 and 2007. Since 2007, Tahsuda has been in charge of the tribal affairs practice at Navigators Global, a Washington lobbying, management and communications firm. His clients have included the Southern California Tribal Chairmen’s Association, the Viejas Band of Kumeyaay Indians, the Oklahoma Indian Gaming Association and the Osage Nation’s gaming enterprise.

MGM RESORTS NAMES NEW HEAD OF DIGITAL

GM Resorts International has appointed Kelly Smith to the position Kelly Smith of senior vice president and chief digital officer. Smith, most recently vice president of global digital products for Starbucks, will be based in Las Vegas and report directly to Chief Experience & Marketing Officer Lilian Tomovich. Smith also served as vice president, digital for Starbucks China, where he recruited and led product management, design and engineering teams.

BALLANTYNE JOINS MELCO INTERNATIONAL DEVELOPMENT

raig Ballantyne, chief operating officer of Summit Ascent Holdings Ltd., has resigned to accept a position with Melco International Development Ltd. Craig Ballantyne Summit Ascent Holdings runs the Tigre de Cristal casino resort in Russia’s Primorye economic zone. Both companies are owned by Lawrence Ho. Ballantyne will hand over his current duties and responsibilities to interim COO Stylianos Tsifetakis. Ho owns both companies. Ballantyne’s role at Melco International has not yet been identified. Summit Ascent, lead developer of the Tigre de Cristal casino resort in the Russian Far East, posted a loss of HKD5.4 million for the first half of 2017, compared to a profit of approximately HKD5.5 million in the prior-year period.

GGB

October 2017 Index of Advertisers

Advantech . . . . . . . . . . . . . . . . . . . . . . . . .83 AGA . . . . . . . . . . . . . . . . . . . . . . . . . . . . .103 AGEM . . . . . . . . . . . . . . . . . . . . . . . . . . . .131 Agilysys . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 AGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 Ainsworth . . . . . . . . . . . . . . . . . . . . . . . . . .17 Aristocrat . . . . . . . . . . . . . . . . . . . . . . . . . . .5 Aruze . . . . . . . . . . . . . . . . . . . . . . . . . . . . .37 Automated Cashless Systems . . . . . . . . . .123 Casino Technology . . . . . . . . . . . . . . . . . . .71 Cintas . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35 CountrR . . . . . . . . . . . . . . . . . . . . . . . .95,116 Crane Payment Innovations . . . . . . . . . . . .51 DiTronics . . . . . . . . . . . . . . . . . . . . . . . . . .111 Eclipse Gaming Systems . . . . . . . . . . . . . . .93 Everi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11 FABICash . . . . . . . . . . . . . . . . . . . . . . . . .127 Fantini Report . . . . . . . . . . . . . . . . . . . . .127 Fox Rothschild . . . . . . . . . . . . . . . . . . . . . .89 G2E . . . . . . . . . . . . . . . . . . . . . . . . . . . . .105 Gamblit Gaming . . . . . . . . . . . . . . . . . . . . .57 GameCo . . . . . . . . . . . . . . . . . . . . . . . . . . .43 Gaming Partners International . . . . . . . . . .67 Genesis Gaming . . . . . . . . . . . . . . . . . . . . .87 GGB Podcast . . . . . . . . . . . . . . . . . . . . . .125 GGB Subscription . . . . . . . . . . . . . . . . . . .121 Giesecke & Devrient GmbH . . . . . . . . . . . .79 GLI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19 Global Market Advisors . . . . . . . . . . . . . . .73 Greenberg Traurig . . . . . . . . . . . . . . . . . . .41 HBG Design . . . . . . . . . . . . . . . . . . . . . . . .29 ICE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .107 IGT . . . . . . . . . . . . . . . . . . . . .Cover Gatefold Incredible Technolgies . . . . . . . . . . . . . . . .81 Innovation Group . . . . . . . . . . . . . . . . . . . .59 Interblock . . . . . . . . . . . . . . . . . . . . . . . . . .13 JCM Global . . . . . . . . . . . . . . . . . . . . . . . .21 Konami . . . . . . . . . . . . . . .14-15, Back Cover Lifescapes International . . . . . . . . . . . . . . .77 Merkur . . . . . . . . . . . . . . . . . . . . . . . . . . . .25 Novomatic . . . . . . . . . . . . . . . . . . . . . . . . .45 Purchasing Management International . . . .61 RMC Legal . . . . . . . . . . . . . . . . . . . . . . . . .91 Scientific Games . . . . . . . . . . . . . . . . . . . . . .9 SG Interactive . . . . . . . . . . . . . . . . . . . . . .101 Subway . . . . . . . . . . . . . . . . . . . . . . . . . . . .31 SuzoHapp . . . . . . . . . . . . . . . . . . . . . . . . .115 TCSJohnHuxley . . . . . . . . . . . . . . . . . . . . . .2 Thalden Boyd Emery . . . . . . . . . . . . . . . . .53 The Hartmann Group . . . . . . . . . . . . . . . . .75 TransAct Technologies . . . . . . . . . . . . . . . .97 US Bank . . . . . . . . . . . . . . . . . . . . . . . . . .117 VizExplorer . . . . . . . . . . . . . . . . . . . . . . . . .47

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CASINO COMMUNICATIONS

Bill Boasberg General Manager, MGM National Harbor

GM National Harbor has been an unqualified success in the Maryland casino market. The closest casino to Washington, D.C.—you can actually see the monuments from the deck of the hotel’s podium—National Harbor quickly took the top spot in the revenue race. Bill Boasberg, the general manager of MGM National Harbor, explains that involved more than “build it and they will come.” The company had to understand the market and respond to its demands quickly after opening, or all would be lost. He spoke with GGB Publisher Roger Gros at the National Harbor property on the shores of the Potomac River early in the summer. To hear a full podcast of this interview, where Boasberg talks about training employees, the depth of the MGM executive bench, and how the company is expanding its East Coast marketing base, visit GGBMagazine.com.

Probably the first 90 days we had a lot of people really just walking through, coming to see the place. And while it’s not quite as crowded as it was in the first 90 days, the people are still coming to enjoy the restaurants, go to the shows, spend time in the casino, and so forth. And it’s good that it’s not as packed as it was in the first 90 days, because now people who are here can breathe and enjoy the space. Obviously, it’s easier to service the customers, and you can get a better handle on the crowd. We recently had our first concert out on the plaza, and we thought it created a great vibe and energy on the property. I think we’ll continue to be busy. A lot depends on what shows we have, special events and entertainment. And our convention business on property now is really taking off, and so, we’re in a good place. You have a beautiful 3,000-seat showroom. How has that worked so far?

GGB: You’ve been open less than a year and are already dominating the Maryland market. That isn’t a coincidence, is it?

It’s been fantastic. We do a couple shows a week—sometimes three or four. I don’t think there’s been one show that hasn’t sold out. And Bill Boasberg: We’re getting better every single we’ve had great acts in here so far—Bruno day. The business is stabilizing every day. Our Mars, Stevie Wonder, Sting, Billy Crystal and service is getting better every others. So we have had coday, we’re learning about our medians and concerts, and It’s been fantastic. customers every single day. we had our first Vietnamese I don’t think there’s Asian act and it was a huge When you open something been one show that success. It sold out, and we this big, you can do a lot of planning but there will always hasn’t sold out. had people waiting in the be things you could have done lobby, in the conservatory, better. So we’re making to get in the show. tweaks to things that we think we can do better. And we’re listening to our customers, and our You have a very good Asian business—a full pit of baccarat tables. Is that a core business of company gets great feedback and surveys from yours? our customers, so we’re better able to make adjustments based on the customer feedback. So, It sure is. In our Asian pit, we have 16 midiwe’re real pleased with where we are right now. games, and we also have midi- and mini-bacc in our high-limit area. Within a 10-mile radius, How long did the curiosity factor last? And now there are about a quarter of a million Asians, so have you determined who your core customers obviously it’s a core focus of ours. It’s been very are? successful, and we think it will grow even more.

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As the name implies, MGM is in National Harbor, adjacent to an area that was really built around conventions and meetings, with the Gaylord Hotel as the flagship, really a meetings and convention hotel. How do you work with that facility?

Our facility is more intimate, more high-end than the Gaylord. We have about 40,000 square feet of convention space. The Gaylord has 500,000—one of the largest on the East Coast. We have a very good, positive relationship with Gaylord. If there’s a big group—and their groups are generally large-scale—which we could not put on, they’ll come over here, they’ll do dinners or break-out meetings in our rooms or theater. We’ve established a great relationship with Gaylord since we came to town, and we consider them a partner of ours. Let’s talk about gaming. Your slot VP (Alex Alvarado) created a slot “draft” where the slot manufacturers could place the machines on the casino floor you were going to buy from them. Pretty innovative. How has that worked?

Alex came up with the concept of letting the different manufacturers help with the placement of the machines. They helped us lay the floor out. That’s been successful, but like any casino, we’re figuring out what machines are working, and which aren’t, and what’s popular and what’s not, what location is better than the other, and we’re making adjustments based on that feedback. I understand the table games have exceeded your expectations.

Yes, the table market’s been fantastic, and it’s really been all games. I’ve never seen such a craps volume as we have here. Roulette is extremely popular, and obviously blackjack does very well. And it’s the same thing with poker. Our poker room has been No. 1 in the market right from the start, win per unit, and we think there’s more to grow as well in the poker room.

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P L AY O N

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