Global gaming business, sept 2013 by Global Gaming Business

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September 2013 • $10 • Vol. 12 • No. 9

Building a Future

Rising Casino Sun

Japan and the new gaming horizon

Konami Gaming’s bet on U.S. and international expansion

GLOBAL GAMES 2013 GAMES PEOPLE PLAY How Slot Makers Are Connecting With Players

Official Publication of the American Gaming Association

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GLOBAL GAMES 2013 Page 30 Even as they look for ways to expand their content into new online and mobile channels, the worldâ&#x20AC;&#x2122;s top slot manufacturers still come together at this time of year to show off what they do bestâ&#x20AC;&#x201D;creating new experiences on the casino slot floor. Our annual snapshot of the slot sector showcases a dynamic collection of game styles, cabinets, top brands and a general marriage of creativity and modern technology. Here is the best of the slot-manufacturing business, one manufacturer at a time. By Frank Legato and Rich Geller

31 Ainsworth Game Technology 34 American Gaming Systems 38 Aristocrat Technologies 44 Aruze Gaming 48 Bally Technologies 54 Cadillac Jack 58 Casino Technology 62 Inspired Gaming 64 Incredible Technologies 68 International Game

Technology 74 Konami Gaming 78 Multimedia Games 84 Novomatic/AGI 86 Spielo International 90 WMS Gaming

Global Gaming Business SEPTEMBER 2013

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Vol. 12 • No. 9

september

CONTENTS

COVER STORY

Cover photo by 501 Studios/Levi Ellyson includes Konami executives (l. to r.) Ryoichi Kimura, chief administrative officer and senior vice president; Executive Vice President and COO Steve Sutherland; CEO Satoshi Sakamoto; and Tom Jingoli, chief compliance officer and senior vice president.

Page 26

COLUMNS

Bigger and Better

18 AGA Industry showcase

With top game designers, rising ship share and a plan to double its production capacity with a build-out of its Las Vegas headquarters, slot manufacturer Konami Gaming looks to a future among the slot market’s elite. By Roger Gros

Geoff Freeman

20 Fantini’s Finance Brave New World Frank Fantini

126 Global Gaming Women Happy Anniversary Judy Patterson

128 Information Technology Best Practices for IT Services William Cook

FEATURES 22 Booming Asia

Gaming growth in Southeast Asia continues, as Western operators continue efforts to learn the nuances of doing business in the region.

122 The Coupon Game

New technology has taken marketing from its direct-mail roots into real-time rewards for players when they are still at the slot machine. By Dave Bontempo

By Rodric J. Hurdle-Bradford

134 Rising Sun 108 Soaring Baccarat

Creativity and technological advances have made the longtime high-roller favorite and Asian staple of baccarat a growing money-maker.

Legislators in Japan are closer than ever to legalizing casino gaming in what could be a lucrative new market. By Patrick Roberts

By Dean M. Macomber

114 Pennsylvania’s Model Pennsylvania’s introduction and expansion of casino gaming can show other new gaming states how to get it right. By Jennifer Day and Emily Oliver

118 New-Age Marketing The effective use of social media and the internet for casino marketing is an art that is still developing.

DEPARTMENTS 6

The Agenda

Dateline

Nutshell

130

Frankly Speaking

132

Cutting Edge

136

Goods & Services

144

People

146

Casino Communications With David Rebuck, Director New Jersey Division of Gaming Enforcement

Focus on iGames A new monthly section highlighting and analyzing the emerging internet gaming markets. Feature 96 The Rise of Poker Bots Computer programs using artificial intelligence create “poker bots” that are helping the online poker market develop.

100 iGNA Outlook Dear Mr. Fantasy By Mark Balestra

102 iGames News Roundup

By Steve Karoul

By Marjorie Preston SEPTEMBER 2013 www.ggbmagazine.com

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THE AGENDA

Online Charge

Vol. 12 • No. 9 • September 2013 Roger Gros, Publisher | rgros@ggbmagazine.com Frank Legato, Editor | flegato@ggbmagazine.com Monica Cooley, Art Director | cooley7@sunflower.com

Roger Gros, Publisher

David Coheen, North American Sales & Marketing Director dcoheen@ggbmagazine.com Floyd Sembler, Business Development Manager fsembler@ggbmagazine.com

he biggest change in the gaming industry over the past decade has been the introduction of internet wagering. While it started out as a grey area in all regions, it soon became legal in most European and Caribbean countries. Illegal online casinos targeted the docile U.S. market until the Unlawful Internet Gaming Enforcement Act codified crimes and penalties in 2006. But when a Department of Justice memo in late 2011 defined the limits of the Wire Act of 1962, which had been the bedrock of online gaming prohibition, it opened the door to many opportunities in the U.S. market. The memo said only online sports betting is completely prohibited, but legal online gaming within individual state borders isn’t considered a crime. So, starting with Nevada, states began to opt into a legal online gaming industry. Delaware soon followed, but it wasn’t until New Jersey signed up earlier this year that a state with any “critical mass” became involved in online gaming. Like all gaming expansion, online gaming will proceed in a domino effect. We’ve already seen interest from states such as Iowa, Pennsylvania, Massachusetts and the granddaddy of all states, California. It’s only a matter of time before they see the advantages of offering a type of wagering that is already being enjoyed by their citizens. At Global Gaming Business, we’ve been covering the development of online gaming for many years now. In 2010, we established our “iGames” section dedicated to the news of online gaming. We covered the success of online gaming in Europe and the Caribbean, the regulatory and political issues, and the legal morass that surrounded the industry in the U.S. during those years, as well as the American response to illegal wagering happening within its borders. But with the prospects for full legalization, either on a federal level or state-by-state, we are expanding our coverage to examine the “nuts and bolts” of how online gaming will work in the U.S. in either scenario. Every month, we’ll present a major feature about online gaming and one of the issues that you must understand if you are to be successful. Payment processing, security features, identification verification, online marketing, affili-

ate marketing and more. In addition, we’ll include columns about online gaming. Each month, the partners who operate the leading online gaming conference in the U.S., iGaming North America, will write a column, and of course, the extensive “iGames” news roundup will keep everyone up to date on the subject. We’ll talk about how the lotteries are the land-based gaming industry’s biggest challenge in the online gaming world. We’ll discuss the legal trends, interstate compacts, and the technology that will solve many of the problems that have faced the online gaming industry over the past decade. And we’ve increased the frequency of our online gaming newsletter, GGB iGames, so if you haven’t signed up for that, please do at GGBiGames.com. While this may have been the biggest change in the industry over the past 10 years, there are still many casino executives who haven’t grappled with the issue yet because of the fact that it has been illegal. They haven’t given it one moment of thought, because they have enough legal and operational issues on their plates to consider. But that is going to change rapidly. Every state in the next few years will at least have to consider online gaming and what it would mean for the state. While land-based gaming executives still won’t consider it a priority—and they certainly won’t even open a magazine whose only theme is online gaming—they now understand that it’s a part of the industry that they’ll have to learn about and understand. We’ll show them in GGB what is important to know and present it to them in easy-to-understand language, as we do with all our subjects in the magazine. So once again, GGB will be the only trade magazine that gaming executives need to read to learn the news, trends and latest developments of any segment of the gaming world. GGB is dedicated to educating executives on these new trends, and we are also committed to providing companies with online gaming solutions the access to these executives that they won’t find in any other gaming trade magazine. So why consider any other source in the industry? GGB provides the answers.

Global Gaming Business SEPTEMBER 2013

EDITORIAL ADVISORY BOARD Mark A. Birtha, Vice President and General Manager, Fiesta Henderson Casino Hotel

• Julie Brinkerhoff-Jacobs, President Lifescapes International

• Nicholas Casiello Jr., Shareholder Fox Rothschild

• Jeffrey Compton, Publisher CDC E-Reports

• Dean Macomber, President, Macomber International, Inc.

• Courtney Muller, Group Vice President, Global Gaming Expo Reed Exhibition Companies •

Judy Patterson, Senior Vice President & Executive Director American Gaming Association

• Jim Rafferty, President, Rafferty & Associates

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

• Steven M. Rittvo, President, The Innovation Group

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

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

• Roy Student, President, Applied Management Strategies

• David D. Waddell, Partner Regulatory Management Counselors PC Casino Connection International LLC. 6625 S. Valley View, Suite 422, Las Vegas, NV 89118 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 2013 Global Gaming Business LLC. Las Vegas, Nev. 89118 GLOBAL GAMING BUSINESS is published monthly by Casino Connection International, LLC. Printed in Nevada, USA. Postmaster: Send Change of Address forms to: Global Gaming Business, 6625 S. Valley View Blvd., Suite 422, Las Vegas, NV 89118 Official Publication

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DATELINE ASIA september2013

Grand OpeninG Ho Tram debuts in Vietnam

ith a sigh of relief, officials behind the Grand Hotel Casino in Ho Tram, Vietnam cut the ribbon to open the project in late July. The grand opening ceremony had been delayed by almost six months, as financial difficulties, regulatory uncertainty and management changes caused turmoil. Earlier this year, MGM Resorts pulled out of the project, even though the company was only providing the brand and some management expertise. Pinnacle Entertainment, which invested nearly $100 million for a 25 percent interest in the development, has downplayed its involvement. And Lloyd Nathan, the executive who left MGM to lead the project through its formative stages, was put on leave in April by Asian Coast Development, the principal owner of the development. He has filed suit in New York and was not invited to the grand opening. Nonetheless, the project is a first for Vietnam. While casinos are permitted in the country, they are largely unregulated and limited to foreigners, as well as Vietnamese who hold dual citizenship. Travel between Ho Chi Minh City (formerly Saigon) and Ho Tram is gradually improving, although it still takes more than two hours to drive the 60 miles between the two.

Casino Pokhara Grande closed last month.

Nepal Nightmare Officials set new regs, fees he government of Nepal has instituted a formal system for taxing and regulating casinos, and is giving operators four months to comply. The government has long been confrontational with the nation’s casino industry. The casinos are generally located in hotels in the capital of in Kathmandu and cater to foreigners. Recent rules that raised the “royalty fee” by 100 percent and prevented locals from gambling have forced many of the casinos to close. The new rules extend licensing beyond starred hotels to private companies, foreign and domestic, but require all operators to register for licensing. “The government authorities will monitor the casinos to prevent entry of Nepali gamblers, conduct regular examination of their machines and classify them according to the quality of their service,” said Secre-

The 541-room resort includes live table and electronic gaming facilities, meeting and convention space, 13 bars and restaurants, a spa, three swimming pools and retail shops. Construction on a second tower began in October 2012 and will add another 559 rooms to the property when completed. Colin Pine, general director of the Ho Tram Project Company, the developer of the Ho Tram Strip, said it was a great day for Vietnam. “This has been a monumental effort, and we stand here today not just launching a hotel, not just launching a casino,” he said. “We stand here today launching a new era of tourism for Vietnam.”

tary of Tourism and Aviation Purna Chandra Bhatteri. “Daily record of people entering the casinos and payout records have been made mandatory. The total number of coins, machines and values of the coins also should be transparent, and the casino-holders are strictly prohibited from providing loans to the gamblers.” A number of new fees have been imposed as well. Start-up costs are set at 250 million Nepalese rupees for five-star hotels (US$2.6 million) and NPR150 million for four-star hotels. Operators must pay NPR20 million ($210,000) upon receiving their licenses and another NPR500,000 as a registration fee. There are also annual fees— R40 million for five-star hotels ($420,000) and R30 million for four-star—and casinos must invest 2 percent of their profits in “social development” programs. Casino Pokhara Grande, which opened five years ago, closed last month. Kedar Sharma, president of Nepal Association of Tours and Travel Agents (NATTA) Regional Chapter, Pokhara, said the casino is an essential product for the tourism industry. “The government should create an environment for entrepreneurs to do business,” he said.

Global Gaming Business SEPTEMBER 2013

Fresh Flowers Details of Wynn’s Cotai project revealed resort designed by the master Steve A Wynn always has something special—a volcano with the Mirage; pirate ship battle at Treasure Island; dancing Wynn Palace waters at Bellagio and a mountain at Wynn Las Vegas. While Wynn Macau was just a smaller version of Wynn Las Vegas, his newest project in the SAR breaks new ground. Wynn’s Cotai casino will have flowers as a theme and a new name, Wynn Palace, said Chairman Steve Wynn during a conference call with investors last month. He said the property will be similar to Bellagio in that it will have a large lake lined with restaurants at the front of the property. Since Wynn Palace will be the first stop of a new Macau light rail system, the station will be connected to the hotel by an aerial transportation system with gondolas resembling fire-breathing flying dragons. Flower gardens will be located throughout the property with various themes like hot-air balloons (borrowed from Wynn Las Vegas, this time). The feel of the property, says Wynn, will be “flowers, water, and natural light.” The 2,000-room hotel will cost $4 billion, and no more, according to Wynn. While he’s anticipating a 2016 spring opening, he says he wants to open by that year’s Chinese New Year, which is February 8. In a related development, Australia-based international contractor Leighton Holdings says it has signed a contract with Wynn Resorts to build the facility for $2.8 billion. The total floor space of the development will be 450,000 square meters.

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DATELINE USA september2013

MGM ReSoRtS WinS BiG Springfield hopes for victory in Massachusetts S

The former Mojito Pointe in Lake Charles, Louisiana

Pinnacle Goes Golden

Landry’s buys planned casino in Lake Charles innacle Entertainment will sell the Ameristar Lake Charles casinohotel, now under construction in Lake Charles, Louisiana, to Houston-based Landry’s Inc., owner of the Golden Nugget. The deal is part of a settlement reached with the Federal Trade Commission allowing Pinnacle to purchase Ameristar Casinos for $2.8 billion. The FTC had raised concerns in May that the buyout could impact competition in the Missouri and Louisiana casino markets. As a result, Pinnacle agreed to sell the Ameristar Lake Charles property plus its Lumiere Place casino and two hotels in downtown St. Louis. The Lake Charles sale to Golden Nugget requires the approval of the FTC.

Under the deal, Golden Nugget will pay for all development costs for Ameristar Lake Charles through the closing date of the sale. Golden Nugget also will assume all outstanding costs owed on the development at that time. The arrangement also includes a $37 million credit to Golden Nugget. Ameristar said as of June 30 it had spent $213.9 million on the project, which has an estimated budget of $580 million. Golden Nugget officials said the company would complete the hotelcasino complex, located on a 242acre site adjacent to Pinnacle’s existing L’Auberge Lake Charles, and open next year. The project is the last gaming license allowed in Louisiana.

pringfield, Massachusetts voters on July 17 handed MGM Resorts International a solid victory as they endorsed its proposed $800 million casino resort for the city’s South End. The vote was 58 percent to 42 percent in favor. The vote allows MGM to compete for one of the Bay State’s three casino licenses. MGM proposes a 250-room hotel and 89,000-square-foot casino with 70,000 square feet of retail and restaurant space in a three-block area of Springfield. Other amenities include a 12-screen cinema and a bowling center. State law requires casino developers to convince a majority of the voters in its host city before it can move its proposal forward. Springfield, the Bay State’s third-largest city, is a working-class city that has one of the highest unemployment rates in the state. The birthplace of baseball, the city has seen challenging economic times in recent years, and came close to bankruptcy in the early part of the century. The part of the city where MGM wants to build was damaged by a freak tornado two years ago. Now MGM must convince the Massachusetts Gaming Commission that its proposal is the best of all of the bids that will be made for the license for the Western Gaming Zone. Others in competition with MGM are the Mohegan Sun, which hopes to build in Palmer, and Hard Rock International, which is vying for a license to build in West Springfield in the fairgrounds of the Eastern States Exposition.

SPLITSVILLE

Regulators OK Penn National, Caesars restructuring plan

Clifford says the switch would mean new expansion possibilities for Penn National. The plan also must pass muster with the Securities and Exchange Comevada gaming regulators approved two corporate restructurmission and other gaming regulators. ings last month. Later in July, Caesars Entertainment Penn National Gaming’s plan to split the regional casino comset in motion its plan to restructure its pany into two publicly traded companies got the regulatory OK. company in order to place its Planet The plan is to take 10 of Penn’s 29 casinos and racetracks and fold Hollywood Resort, interactive gaming them into a real estate investment trust, or REIT. The trust would Caesars’ Planet Hollywood on the Las Vegas Strip business and planned Baltimore casino be known as Gaming and Leisure Properties, Inc. into a separate company that will be majority-owned by the parent company. On July 10, Penn National Chief Financial Officer Bill Clifford told the The company is shuffling its assets to finance potential new investments and Nevada Gaming Control Board that, pending final approvals, the company boost Caesars’ balance sheet. Caesars told commissioners that it would fold Planet hopes to complete the transition by the end of this year. But customers will be Hollywood, Caesars Interactive Gaming and the upcoming Horseshoe Casino in unaffected, Clifford said; in fact, they may not even notice a difference. Baltimore into a subsidiary called Caesars Growth Partners. The company expects Splitting the company, a plan that was first announced in November 2012, to raise $1.18 billion from selling stock for the new public entity. means Penn investors would receive a dividend of about $5.35 per share plus Private equity groups could invest up to $500 million in the venture. The tristock in the REIT, the Las Vegas Review-Journal reported. The casino operation umvirate of Caesars Entertainment, TPG Global and Apollo Global Management arm will pay the REIT an estimated $450 million a year in rent for the casinos. will own 70 percent of the subsidiary. Caesars can bring the businesses back into the Because REITs don’t pay federal income taxes, they are required to distribute at company after five years. least 90 percent of taxable earnings to shareholders.

SEPTEMBER 2013 www.ggbmagazine.com

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DATELINE TRIBAL september2013

Tribal Trouble

Oklahoma casino closes amid corruption accusations

early 60 employees of the Silver Buffalo Casino in Anadarko, Oklahoma recently were surprised to find the doors shut with no explanation—and no paychecks. Instead of their regular salaries they received just $200 in cash. Although the casino workers did get paid, the incident is just one result of a power struggle inside the Apache Indian Tribe of Oklahoma. Donnie Cabannis, who says he is chairman of the tribe, said the casino closed because his rivals had been stealing money. “There’s a lot of corruption going on in our casinos now, and we need to take control of that,” Cabannis said. But Tribal Administrator Ernest Redbird said Cabannis is no longer the chairman, and money has not been stolen. Redbird said, “I think there’s been miscommunication of money being transferred from one bank to another.” Also in Oklahoma, the state attorney general’s office gave the United Keetoowah Band another 30 days to have its Tahlequah gaming facility’s 2.03 acres of land placed in federal trust. Diane Clay, director of communications for the attorney general’s office, explained that under a settlement reached in 2012, the UKB had been required to close its casino if the U.S. Department of Interior had not taken the casino land into trust by July 30, but it was expected to happen by the end of August. The UKB and the Cherokee Nation have been at odds over the UKB’s land for years. According to federal gaming laws, all tribal gaming facilities must be located on trust land. However, Cherokee Nation officials said the UKB cannot legally obtain trust status in northeastern Oklahoma because the CN has tribal jurisdiction over the area.

Hard rock No More New Mexico casino drops brand, returns to tribal theme

he Isleta Resort & Casino in Albuquerque, operated by Enterprise of Pueblo of Isleta, held a grand reopening on July 12. Previously the Hard Rock Hotel & Casino Albuquerque, the property has returned to its Native American roots. The celebration opened with a visual spectacle featuring breakthrough technology that projected upon the eight-story tower an image of the building seeming to fill up with water and explode to unveil the Isleta logo, which then transfigured into a soaring eagle. Then 100-foot, three-dimensional images of the new property projected on the building. The complete 15-minute show could be seen from dusk to 2 a.m., and was broadcast for five days. The property offers a completely redesigned casino, a luxury hotel, championship golf course, fully stocked fishing lakes, fine dining, indoor and outdoor pools, a bowling alley and more. The new décor features priceless Native America artwork displayed throughout the property. The previous Hard Rock incarnation was arranged through the company that owns the Hard Rock Hotel in Las Vegas and had no dealings with the Seminole tribe, which owns the Hard Rock gaming brand east of the Mississippi and throughout the rest of the world.

Taxman cometh

court rules against tribe in slot case

n a closely watched and hotly debated court case, the 2nd U.S. Circuit Court of Appeals in Manhattan has ruled against the Mashantucket Pequot Tribe over the taxation of non-tribally owned slot machines. The decision, which reversed a lower court ruling, has widespread ramifications, as a victory could have seen other gaming tribes follow the Mashantuckets’ lead on reservation casinos throughout the country. The case involves two non-tribal businesses that lease slot machines to the tribe for use at Foxwoods Resort Casino. In 2005, New Jersey-based Atlantic City Coin & Slot Co. refused to pay personal property taxes to the town of Ledyard, Connecticut, on slot machines leased to the tribe. The company, 10

Global Gaming Business SEPTEMBER 2013

backed by the tribe, claimed it did not have to pay the taxes because it would interfere with tribal sovereignty. WMS Gaming, another slot machine company, joined the suit in 2008. Taxes on the slot companies would have come to about $20,000 in property tax income annually—less than two-tenths of 1 percent of the $15.2 million the companies anticipate each year in revenues from their dealings with the tribe. But there were seven more slot machine distributors, and the tribe had suggested that the principle the lower court had applied in banning the taxes could be applied to anyone who maintained property on tribal lands. If the appeals court had upheld the lower court ruling, exempted taxes could have come to hundreds of thousands of dollars a year. A victory for the tribe could have also sparked similar lawsuits on Indian reservations throughout the country. “With this decision, the town of Ledyard will be able to collect taxes that are critically important to providing government services, including those that result from being a host community for the Foxwoods casino,” said Ledyard Mayor John Rodolico in a statement. The tribe is considering appealing to the U.S. Supreme Court.

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DATELINE GLOBAL september2013 Rideau Carleton Raceway

Two Are BeTTer ThAn one Ottawa council considers second casino D

Big Gamble on the Barrier Reef Hong Kong billionaire proposes huge resort casino

ony Fung, scion of one of Hong Kong’s best-known banking families, is pitching officials of the Australian state of Queensland on an A$4.2 billion (US$3.75 billion) gaming and entertainment mini-city called Aquis Resort at the Great Barrier Reef—a “man-made wonder of the world,” as he describes it, that would dwarf anything they’ve ever seen Down Under. He’s purchased an option on 300 hectares (850 acres) of farmland about 13 kilometers north of Cairns in a seaside hamlet called Yorkeys Knob. Plans call for five hotels at the site totaling 3,750 rooms and 1,335 apartments and luxury villas plus a golf course, a 25,000-seat sports stadium, two theaters, 13,500 square meters of high-end retail, a lake and reef lagoon, and one of the world’s largest aquariums. The “international class” casino included in the plan, targeting wealthy Chinese, would be larger than James Packer’s flagship Crown Melbourne and would feature 750 table games and 1,500 slot machines. He’s shooting for a 2018 opening. “I have recognized the unique suitability of the Cairns region to develop an integrated resort, based upon the Macau model,” Fung said in an open letter accompanying the proposal. Aquis, he said, will “drive Asian tourism awareness of north Queensland and the Great Barrier Reef,” and provide the state “an opportunity to fend off its southern and regional competitors for the increasingly important Chinese tourism market.” Not surprisingly, state and local officials are intrigued. Fung has a sizable reputation as an investor and developer. The billionaire is credited with building the Hong Kong Convention and Exhibition Centre and has extensive holdings in Queensland that include a sugar cane plantation, a cattle farm and two private homes. They especially like his talk about 9,000 construction jobs and 10,000 full-time jobs once Aquis is open.

Global Gaming Business SEPTEMBER 2013

espite the opinion of the Ontario Lottery and Gaming Corporation that Ottawa can support only one gambling site in addition to the Quebec government’s Lac Leamy casino in Gatineau, the Ottawa city council recently— once again—approved a motion to ask the province to allow two gambling sites in the city. The council’s finance committee was to take up the request on August 26. Councillors Tim Tierney and Mark Taylor brought the motion to let Ottawa have two casinos, including one already located at the Rideau Carleton Raceway, plus a second casino within the city limits. The move for two casinos would allow Ottawa Senators owner Eugene Melnyk to bid for a second gambling facility. Melnyk said he’s been working since 2006 to add a casino to his property at the Canadian Tire Centre. He noted the Senators lose money and new income is needed to improve the arena. Melnyk’s attorney recently threatened legal action if the city continued to support the raceway as the only possible casino location. Melnyk also took out two full-page newspaper ads in the last two months criticizing the city’s raceway casino preference. The Rideau Carleton Raceway, located in south Ottawa, depends on its 1,250 OLG slots which would be removed if the province builds a single new casino elsewhere. However, under Tierney and Taylor’s plan, if the OLG wants a new Ottawa casino, it would have to leave the raceway’s slots intact; if it only wants one casino, it would have to be at the raceway and include the current slots plus an additional 21 table games that were approved by the city council but never installed. For years, Ottawa Mayor Jim Watson has led an effort to restrict a new provincial casino to the Raceway. OLG wants to build new casinos to generate additional revenue for the provincial government.

NEW ZEALAND CONSOLIDATION SkyCity OK’d to buy resort casino

kyCity Entertainment Group, which last month agreed to build an A$402 million convention center in Auckland in exchange for regulatory concessions, has been granted approval to Queenstown’s Wharf Casino buy Queenstown’s Wharf Casino for $5 million. The Commerce Commission cleared the Auckland-based casino and hotel operator to buy Lasseters International-owned Otago Casinos, which will add 74 electronic gaming machines and six gaming tables to SkyCity’s existing operations in the resort town. The commission said it was satisfied the acquisition was unlikely to substantially lessen competition in the national or the Queenstown markets. SkyCity gained 100 percent ownership of Queenstown Casino in December, buying out Skyline Enterprises’ 40 percent stake for $5 million as it looks to capitalize on demand from its high-roller overseas gamblers.

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DATELINE EUROPE september2013

Irish Justice Minister Alan Shatter

Luck of the IrIsh

Small casinos OK; IRs not. And forget FOTBs!

reland’s Justice Minister Alan Shatter has published draft legislation that would allow for 40 small casinos around the country with up to 15 gambling tables each, but with no electronic casino-style table games. Slot machines would be allowed, capped at 25 per venue, under the Gambling Control Bill, which will be submitted for public consultation prior to debate in the Dáil and the Seanad, the lower and upper houses of the national legislature. “I believe that this bill will give Ireland a well-regulated gambling system that will be recognized as such internationally,” the minister said. In addition to the ban on fixed-odds betting terminals, as e-tables are

known, the 90-page bill provides for the creation of a gambling oversight agency under the Justice Ministry, which will exercise final licensing, regulatory and enforcement authority. Casinos are prohibited in Ireland, but casino gambling takes place in an estimated 34 licensed private-members clubs by virtue of a loophole in laws dating back to the 1950s. Plans to legalize and expand the market have been discussed for years with no result. In 2011, the government blocked a proposed €460 million super-casino in Tipperary. Shatter said, “We’ve made very specific decisions in the public interest. Those specific decisions include a decision that we will not be making provision for resort-style casinos.” The FOBT ban is derived from proximity to the U.K., where the machines are a highly lucrative and highly controversial fixture in betting shops across the nation, viewed by health experts and many community and political leaders as a particularly exploitative and addictive form of gambling. The new oversight agency also will regulate the country’s online and remote gambling industries, which will be taxed under separate legislation reported to be nearly complete and ready for public review. The Betting Amendment Bill, as it’s called, will extend the current 1 percent levy on bets placed with land-based bookmakers to the online space. The tax is expected raise €15 million-€17 million annually and is being hailed by Ireland’s racing authorities, who are hoping for additional allocations to a state-administered fund created to help support the industry. The bill must also be approved by the European Commission.

Take That, Sheldon! Megaresort planned for Barcelona CN World plans to break ground this year on a six-casino resort complex outside Barcelona. The vision for Barcelona World, as it’s called, includes 18,000 hotel rooms at full build-out and an array of leisure attractions spread across 1,500 acres. The projected cost is US$6 billion. Barcelona was the city Las Vegas Sands turned down in favor of Madrid for its equally grandiose EuroVegas. “Mega-resorts are nothing new except in Europe,” said Ivar Yuste, a partner at Madrid-based consulting firm PHG Hotels & Resorts. “The idea is to create a destination where there is nothing and where land is cheap. BCN World is in a great location. Disney was considering that same area in the region of Catalonia for its European theme park before deciding on Paris.” Partners in the project include Spanish investment group Veremonte, upscale shopping developer Value Retail, Macau-based casino operator Melco Crown Entertainment and Spain’s Meliá

Hotels International. “In the coming months, we shall continue to work with Veremonte on the definitive casino management agreement and shall make announcement when the agreement is signed,” Melco told Englishlanguage Macau Business Daily. Barcelona Dream, as the first phase is called, will occupy 3.2 million square feet and feature 1,100 hotel rooms operated by Meliá. Opening is slated for 2016. Adelson’s EuroVegas, pegged at about $30 billion at full build-out, envisions a complex of 12 resort hotels with six casinos, convention facilities, golf courses, shopping malls and other attractions. The first phase is slated for completion in 2017. In June, parent company Las Vegas Sands officially registered plans to build the complex, located in Alcoron about 10 miles south of Madrid. But construction has been delayed while LVS waits for the central government to approve a controversial exemption to the country’s ban on indoor smoking.

Global Gaming Business SEPTEMBER 2013

Analysts, in the meantime, remain guarded about both projects. “I think that down the line it will prove there just isn’t enough business for two gaming mega-resorts so close together, and we could see both of them downscaling their plans,” said Yuste. Russell Kett, chairman of HVS in London, agrees. “It remains to be seen whether the two of them will prosper, but both sites have good weather, a pleasant environment, good (transport) connectivity and government support.”

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NUTSHELL

“They Casino regulators and law enforcement officials from Maryland recently visited China as part of an ongoing investigation into plans by MGM Resorts to operate a casino in Prince George’s County. MGM is one of three companies looking to secure a Maryland license, but its casino in Macau, the world’s top gambling market, has drawn scrutiny because it is owned in part by Hong Kong businesswoman Pansy Ho. Ho’s father, legendary casino magnate Stanley Ho, has always dodged allegations about his ties to Chinese organized crime. MGM officials say they believe the current investigation will not prove detrimental to their prospects in Maryland, where they want to develop an $800 million resort at National Harbor on the Potomac River. Construction began August 1 on the Choctaw Nation’s new 22-story hotel tower at its Choctaw Casino in Durant, Oklahoma. The expansion, which will require the demolition of portions of existing buildings, also will include a movie theater, conference center and bowling alley. The Oasis hotel pool will be upgraded and the food court and south casino will be renovated. The project will create more than 500 new jobs. SJM Holdings is partnering with the company behind the 2008 Beijing Olympics to create an entertainment complex at the Macau casino giant’s planned gaming resort on Cotai. The RMB2 billion deal (US$326 million) with Beijing Gehua Cultural Development Group will result in the creation of a Chinese-themed “Wonderland of Art and Literature” featuring live performances, exhibitions and amusement park rides. SJM has been awarded a government grant of 70,500 square meters of land on Cotai for the resort. Sri Lanka will require casinos to obtain licensing as part of new regulations being drafted under the auspices of the Finance Ministry. Although gambling officially is banned, the island nation is home to nine casinos, six of which pay taxes, and more than 1,000 betting outlets, which pay a 5 percent tax on revenue but are exempted from VAT and other levies. But once the new rules are published, operators who fail to obtain a license could face fines and imprisonment, according to a Finance Ministry spokesman. Dotty’s, the Nevada chain of mini-slot parlors that forced the state to redefine tavern operations, has announced plans to buy its first full-scale casino. If state regulators and Clark County commissioners approve the sale, Dotty’s will buy the Hacienda out-

side Boulder City, now owned by the Lakeview Company. Dotty’s currently operates more than 80 standalone taverns in the Silver State and is the slot machine route operator for Food 4 Less and Kmart stores. It is owned by Nevada Restaurant Services Inc. The Hacienda is set on 11 acres at the site of the former Gold Strike Casino, which was destroyed by fire in 1998. The property includes 19,000 square feet of gaming space plus meeting facilities, a gift shop and movie theaters. The sports book is operated by William Hill. Boyd Gaming Corp.’s recently announced stock sale will make 15 million shares of common stock available for purchase, with proceeds used to pay down long-term debt and for “general corporate purposes.” The announcement, which came a day after the company’s second-quarter earnings exceeded expectations, surprised some industry analysts. Boyd’s stock price soared 135 percent over this time last year. Mexico’s national gaming regulator says between 70,000 and 75,000 slot machines are operating in the country illegally. The DGJS, as the agency is called, made the estimate in a report to a special legislative commission that is studying ways to reform the gaming industry. The devices are mostly operated in “mini-casinos” located in Mexico City, Jalisco, Yucatán and Nuevo León, the agency said. The DGJS estimates the annual value of the illicit industry at more than US$935 million. Intralot’s Polish subsidiary Totolotek has been awarded an internet betting license from the country’s Ministry of Finance. The six-year license authorizes the company to provide casino-style fixed-odds games and sports pool games. A live in-running application is also being developed ahead of the site’s expected launch in the fourth quarter. Totolotek, acquired by the lottery giant in 2005, operates about 400 betting outlets in Poland. Treasure Island on the Las Vegas Strip is looking to add a three-story, 46,200-squarefoot shopping center with a pharmacy, stores, a restaurant and an auto dealership. The plan also calls for new landscaping around the property. If approved by Clark County commissioners, the addition would be constructed on a 19.5-acre plot and occupy part of the resort’s lagoon area. Treasure Island’s famous pirate ship will remain, but its track will be shortened to accommodate the new development.

CALENDAR September 23-26: Global Gaming Expo (G2E), Sands Expo Center, Las Vegas. Produced by the American Gaming Association and Reed Expositions. For more information, visit globalgamingexpo.com.

October 8-10: European iGaming Congress, Fira Barcelona, Spain. Produced by Clarion Gaming. For more information, visit eigexpo.com.

September 29-October 1: International Masters of Gaming Law Autumn Conference, Grand Hotel, Oslo, Norway. Produced by IMGL and held in conjunction with the International Association of Gaming Regulators. For more information, visit gaminglawmasters.com/conference/oslo2013 or iagr.org.

November 12-14: South American Gaming Suppliers Expo (SAGSE), Costa Salguero Center, Buenos Aires, Argentina. Produced by Monografie. For more information, visit monografie.com/sagse_bsas.

October 1-4: North American Association of State & Provincial Lotteries (NASPL) 2013 Annual Conference, Westin Providence Hotel, Rhode Island Convention Center, Providence, Rhode Island. Produced by NASPL. For more information, visit naspl.org.

Global Gaming Business SEPTEMBER 2013

December 9-12: The 40th Annual Symposium on Racing & Gaming, La Paloma Resort, Tucson, Arizona. Produced by the University of Arizona’s Race Track Industry Program. For more information, visit ua-rtip.org/symposium_racing_gaming.

Said It”

“In its purest form, the operation of VIP rooms is legitimate and lucrative for all parties. It is only in the ancillary affiliated activities that the model is vulnerable to perpetration of illegitimate activities.” —A.G. Burnett, chairman of the Nevada Gaming Control Board, testifying before a U.S. Senate committee that Macau VIP operations are affiliated with organized-crime triads

“We have found that many convention planners appreciate being made aware of the status of labor relations at the hotels they are planning to use. We also want to ensure that our members’ struggle to negotiate fair contracts is known to visitors to Las Vegas.” —Culinary Union of Nevada, on warnings sent to event planners about avoiding casinos where its workers may strike

“Do we think it is an amazing market opportunity? Yes. Do we think it’s a gamechanger for New Jersey? Yes.” —MidOil’s managing director, Vincent Crandon, whose 2UP Gaming is looking to buy or build a casino in Atlantic City with an eye to offer online gaming

“When New York and Massachusetts come online, that will bring us to the term ‘hypercompetitive conditions.’ All of this additional gaming capacity is getting to the point where supply is outstripping demand. We’re getting to that.” —Cory Morowitz, chairman of New Jersey-based Morowitz Gaming Advisors

“No prior administration in the last 15 years has gotten this far. There’s actually a discussion draft and we’re in consultations.” —BIA head Kevin Washburn to journalist Dave Palermo on the extraordinary motivation of the federal government to fix the “broken” federal recognition system

“There is room for a lot of growth. People who love gaming as an entertainment source might not be able to make it out to the casino some days. But, they can spend five minutes or so playing on a computer or mobile device. It’s a new form of distribution.” —Geoffrey Stewart, new general manager of online poker for Caesars Interactive

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AMERICAN GAMING ASSOCIATION

TAKE OUR IDEAS

OUT FOR A

Industry Showcase G2E is opportunity to show what we do, celebrate who we are By Geoff Freeman, President & CEO, American Gaming Association

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ith autumn upon us, I’m looking forward to our industry’s flagship tradeshow and conference event, Global Gaming Expo 2013, later this month. While this marks my first G2E as president and CEO of the American Gaming Association, the importance of this high-profile event is not lost on me. Having worked in the U.S. travel industry for seven years, I recognize the value in a business event that brings together well over 20,000 professionals—and showcases the best innovations and ideas—in an exciting destination like Las Vegas. Since G2E made its debut in 2001, it has solidified itself as the premier event and opportunity to showcase our industry’s best products, trends and intelligence. But in addition to this role, G2E is an opportunity to examine and define who we are as an industry. When we take a close look at what we do and who we are, we’ll see it’s a message worth spreading enthusiastically—and one that I hope to rally the industry around in the months to come. • We help local and national economies thrive. As an economic engine that accounts for nearly 1 percent of the U.S. gross domestic product, we generate revenue for local businesses, boost tourism for local areas, and are responsible for nearly 1 million American jobs. • We are community partners. Due to our outstanding record of corporate social responsibility—including community service and corporate giving—we are part of the fabric of the communities where we operate. The opportunities we create locally expand to other supplier businesses and their employees; we invest in community development; and we partner with charitable organizations. All told, there are countless stories about how our companies’ impact has stretched beyond the casino floor and made communities stronger. An upcoming

video from the AGA, titled “An Introduction to the Modern Gaming Industry,” will begin to illustrate this reality. • We are technological innovators. The 13 years we’ve hosted G2E certainly prove this— and our customers can see it. Walk into any of our properties in any state and you’ll immediately see that our companies are constantly creating newer and better entertainment products and services. And in an industry that fosters healthy competition, our companies stay inventive and fresh when it comes to marketing to a growing and diverse customer base. • We are multi-faceted entertainment centers. This is not just true in Las Vegas, where revenue from non-gaming amenities has been on the rise. Our industry provides a wealth of entertainment options across the country. And across the world in Macau, the largest gambling market on earth, our companies are helping the business environment evolve. Not only have Macau’s regulatory standards risen with our presence, but our companies have fostered a more diverse entertainment product there. This dovetails with the Macanese government’s desire to attract a mass market by expanding their offerings beyond gambling. American gaming companies have made this effort a reality by bringing creative, multi-faceted properties that provide a variety of entertainment options. Our industry has always exhibited confidence and leadership in sharing our story. I challenge all of us to do more of it. I encourage each and every one of us to spread the word early and often about who we are and why we love what we do. We are innovators. We are givers. We are economic engines. We are entertainers—and so much more. It will be my challenge in the coming months to build a strategic plan to effectively spread this message in new and thought-provoking ways. But the story is already there. Let’s let the world know what the gaming industry has to offer.

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FANTINI’S FINANCE by FRANK FANTINI

Brave New World Online gaming was feared by some suppliers, but evidence indicates they may benefit

he first sketchy images of online gaming in the United States are starting to appear, and they suggest brick-andmortar companies might fare well. The clearest comparisons so far are in social gaming. On their last conference call, IGT CEO Patti Hart and CFO John Vendemore boasted of the emerging prowess of DoubleDown, their social gaming division. There have been 10 million downloads of DoubleDown poker on Facebook, the third most of any app, gaming or otherwise. And it is the most downloaded app on iPad, they said. More important, revenue has grown 105 percent in the past year to $61.4 million in the June quarter and DoubleDown will be GAAP breakeven by early fiscal 2014, they said. The really impressive number, however, is what are called bookings. That’s the amount of money spent by players who have exhausted their free chips. For IGT, it grew 60 percent to 40 cents a day per user. That is nearly double the nearest competitor, they pointed out. And what is IGT’s big advantage? Its rich library of hundreds upon hundreds of games that allows IGT to continually refresh its offerings to players, they said. A few days later, Zynga held its investor conference call and presented a stark contrast. Founder Mark Pincus said ZNGA is abandoning plans for real-money internet poker in the U.S., and had to report deterioration throughout his business. ZNGA’s bookings: 5.3 cents. At one point in the call, Pincus was asked why ZNGA has 2,300 employees when a similar company was doing as well with 400. His answer boiled down to a multiple of 400 people can do that multiple or more of games, plus ZNGA is developing a platform and infrastructure. Later, he said ZNGA’s strength is its ability to create games, and that FarmVille showed a single game could generate $1 billion. Aside of the fact that his comments can be interpreted as somewhat contradictory, it makes for an interesting comparison to any online casinos

being supplied by the likes of IGT, Bally, WMS, Aristocrat, Ainsworth, Konami and others. They don’t have to develop games because they already have them. They have the makings of platforms. They understand the gambling mentality and the math of gambling games. So, it would seem that ZNGA is caught in the middle. Anyone can invent a hit game, so competitors can bubble up from the bottom with the next FarmVille. On the other side are the established gaming suppliers with libraries and other resources. It’s also worth asking if ZNGA was a one-hit wonder that attracted investors who confused a hit with a franchise. Meanwhile, Adam Krejcik of Eilers Research thinks free-play will continue to be a major source of revenue even after real-money gambling is legalized. Using Caesars Entertainment as an example, he estimates that even if it gets 50 percent market share in Nevada and New Jersey, it would generate just $68 million in EBITDA, while it already is on track to generate $90 million this year from its social casino. The top three social casinos in the past quarter were CZR at $71.4 million counting World Series of Poker licensing, ZNGA at $68.6 million and IGT at $61.4 million. Together, they comprise 40 percent of all social gaming revenue, Krejcik said.

CANNIBALIZATION One of the big debates is whether i-gaming will cannibalize brick-and-mortar. So far, the evidence is that it will not. The World Series of Poker, for example, exploded in part because of online qualifying tournaments, and that, in turn, led to an explosion in the number of poker tables in casinos throughout the U.S. Companies like British bookmaker William Hill continue to grow their bricks-and-mortar business even as online gaming revenues soar. And in the U.K., where online gaming has been regulated for about a decade, bricks-andmortar spending is holding up.

Global Gaming Business SEPTEMBER 2013

Consider these U.K. numbers from Global Betting and Gaming Consultants as culled by David Briggs, the entrepreneur who helped Ladbrokes go online and who now runs GeoComply, which verifies player location: RACECOURSE ATTENDANCE 2000 2010 5.16 million 5.77 million CASINO GAMING REVENUE 2001 2011 £3.316 billion £4.98 billion CASINO ATTENDANCE 2001 2011 11.29 million 17.39 million NUMBER OF CASINOS 2000 2011 118 149 LOTTERY SALES 2004/5 2010/11 £141 billion £207 billion BINGO STAKES 2000 2011 £ 1.106 billion £1.309 billion

Clearly, there has been room for growth in mature bricks-and-mortar Britain even as online gaming has emerged. And, Briggs argues that brick-and-mortar companies need to get into the e-game, citing studies showing a majority of casino patrons are over 65 while 75 percent of smart-phone users are under 35. Finally, we think New Jersey will offer the perfect laboratory to study the impact of i-gaming in the U.S. Casino gambling there is limited to one small city removed from the state’s major population centers. There aren’t a lot of complications that will confuse the results. A year from now, other states should be able to look at New Jersey and draw some conclusions about whether, why and how to legalize online gaming. Frank Fantini is the editor and publisher of Fantini’s Gaming Report. A free 30-day trial subscription is available by calling toll free: 1-866-683-4357 or online at www.gaminginvestments.com.

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Tiger’s Tale CAN THE ASIAN GAMING BOOM BE SUSTAINED? PART I – CHINA & MACAU By Rodric J. Hurdle-Bradford

he exponential growth in the Asian gaming market has been the industry’s leading story this decade, with Macau serving as the most important model of that expansion. The Cotai region of reclaimed land is currently the most popular gambling destination in Macau, which is located on the heel of China’s southern coast. Macau is the only place in the country where casino gambling is legal. The SAR’s $38 billion in revenue last year was more than six times higher than the Las Vegas Strip. “It is not so much that foreign markets overlook Asia, but more about their inability to get beyond certain perceptions and inhibitions,” says Dean Macomber, president of Macomber International, a gaming consultant firm. “To develop, operate and market in Asia takes commitment and courage. For Western operators, most Asian venues are second- and third-world countries where the rules of government, business and even life are different than home, which causes angst and often resistance to invest in Asia or specific venues.” The influence of the communist government of the People’s Republic of China (PRC) was, is and always will be the elephant in the room when con22

Global Gaming Business SEPTEMBER 2013

ducting any business with the country. Despite the difference in government structure between China and the Western world, it is vital that all newcomers to the Chinese market avoid trying to duplicate or push Western beliefs, practices or even architectural design. “The importance of local awareness, requirements and expertise is valuable because there has been an unending stream of rhetoric with the message of ‘educating’ the Chinese on lifestyle issues,” says Ben Lee, a Macau-based consultant in the gaming industry. “We have seen numerous facilities built in the Vegas cookie-cutter style. The gloss of some of these successes has hidden the weaknesses of some of these projects, and one can only surmise how much more profit they would have made had they bothered to do it right in the first place.” An open mind and the ability and desire to take on risk in the world’s most successful gaming market sounds like an easy task. With the industry’s demographic shift from the West to the East, one expert recommends that Westerners take a page from our pioneering forefathers to maximize their growth potential in Asia.

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“The boom in the Asian gaming market is expected to continue because the Chinese love to gamble. The major source of customers for most Asian gaming markets is mainland China, and Chinese gamblers continue to fuel growth in the gaming market in Macau and Singapore.” —Anita Chen, Managing Director, Park Strategies, Taiwan

“It is necessary that businesses take more of a pioneering approach to realize strategically they need to get into Asia to participate in its growth,” says Macomber. “Like all pioneering efforts there will be risks, but as so many Western businesses have done before them, there are ways for non-gaming companies to enter Asia; it just takes commitment and courage. It is not too far-fetched to forecast that the largest gaming companies will be Asian-centric, if not Asianowned, in the not-too-distant future.”

Bye-Bye to the Boom? The question in whether the Asian gaming boom can continue lies in the control and influence of the Chinese government in Macau. Some experts see the installation of cash controls and other non-gaming-revenue-friendly practices as an early warning sign of what is to come. More optimistic gaming industry experts cite the tourism demand to Macau and the mainland’s billion-plus population as natural, built-in protection from negative government influence. “I believe there will be continued growth in Asia, and that growth will be enjoyed by the casinos in Macau and other regional jurisdictions,” says Andrew M. Klebanow, principal of Gaming Market Advisors. “In many ways, Asia resembles the United States in 1988, when there were only two states that permitted gambling. Granted, many markets in the United States have reached a point of saturation, but it took 25 years to get to that point. Asia will eventually reach a point of saturation, but that time is decades away.” That anticipated growth will definitely have a trickle-down effect for other countries. Mike Gore has worked in the Cambodian market for the last 15 years and is now general manager of Savan Vegas Entertainment Resort. “Generally, casino games are increasing in Macau and Malaysia, and online games and sports betting are increasing everywhere in Asia,” he says. “The Asian gaming market boom can definitely be sustained, because of the propensity of Asians to gamble and the continuing increases in regional gross domestic product growth rates. Our forecast is that competition will continue to increase but that regional casino revenues will double within five years.” In a July interview with CNBC, Sands China President and CEO Edward Tracy expressed great confidence that the recent Chinese economic and regulatory policies will not have a major negative effect on Macau gaming. “We have not seen any evidence in our fundamental metrics that there is any reason to believe these are earth-shattering policies that will affect our customers in Macau,” he said. “We believe our performance proves that, and in the next six months we feel there will be continued growth in Macau.” The numbers support Tracy’s confidence, according to Anita Chen, manag-

ing director of Park Strategies in Taiwan. Between January and May 2013, Macau’s gambling revenue rose by 14 percent over the same period last year. “The boom in the Asian gaming market is expected to continue because the Chinese love to gamble,” says Chen. “The major source of customers for most Asian gaming markets is mainland China, and Chinese gamblers continue to fuel growth in the gaming market in Macau and Singapore.” It’s undeniable that Macau’s success is directly related to its national government. Visas and operating permits are all a part of the necessary positioning of tourists and businesses to enter the Asian market. “Macau revenues are largely driven by the PRC, and as it goes, so goes Macau for the foreseeable future,” says Macomber. “In this regard, the further from China a competitive gaming venue opens the less the impact will be. The less ‘friendly’ and convenient the country is, the less likely that the PRC will grant exit visas to PRC residents to gamble there. The more expensive it is to travel, the less likely there will be an impact, and on it goes.”

The Market for Macau China is in an advantageous position of control when it comes to building relationships with other countries that want access to Macau. The Macau SAR and the Chinese government are each looking for their right opportunities, on their terms, for mutual partnerships to establish and maintain conditions for growth. “On the demand side, pro-economy, pro-travel, pro-unfettered travel policies will help Macau,” says Macomber. “On the support side, policies that pay attention to infrastructure and other gaming or tourism support will ensure that both keep pace with demand.” By quickly rebounding from the international economic crisis of 2008 and 2009, a stronger sense of the defined Macau market has led to this confidence displayed by both industry experts and gaming operators alike. “I do not hold much credence in some experts’ opinion that Macau will experience a significant downturn because of government policy changes,” says Klebanow. “Macau’s performance has defied experts’ opinions time and time again, and recent improvements in gaming revenue over prior-year periods continue to exceed expectations. All trends continue to point to continued growth.” Klebanow points to the Sands Cotai Central property that has successfully attracted new visitation even though there are minimal shopping amenities and a generic casino theme. “Its contribution to the Cotai room industry must be noted because it placed a lot of mid-priced room product into the market which was sorely needed,” he says. “Over the next 24 months Macau will see continued benefit from this inSEPTEMBER 2013 www.ggbmagazine.com

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Sands Cotai Central

More good news occurred for Macau on July 30 when Steve Wynn announced that he will open his first casino resort in Macau’s prime Cotai location earlier than expected, in first-quarter 2016. The new resort, called the Wynn Palace, will be similar to Wynn’s Bellagio in Las Vegas. creased room supply. The 24-to-48-month outlook is very promising, because the new must-see properties will stimulate mass market demand. Add to that improvements in transportation infrastructure and market growth becomes more promising.” The developments include Melco Crown’s Studio City, Sands China’s Parisian, Wynn Cotai, MGM Cotai, SJM Cotai and further development from Galaxy Entertainment. Macau’s primary markets are Guangdong province and Hong Kong. “There is nothing on the medium-term horizon that leads to a conclusion that the market will not grow in response to this increase in supply,” says Klebanow. More good news occurred for Macau on July 30 when Steve Wynn announced that he will open his first casino resort in Macau’s prime Cotai location earlier than expected, in first-quarter 2016. The new resort, called the Wynn Palace, will be similar to Wynn’s Bellagio in Las Vegas. The front of the property will feature a massive lake and a light and fire show. Guests will be ferried across the lake in air-conditioned gondolas. “I feel sanguine and comfortable about being here, and plan on being here a lot longer,” Wynn said on an earnings call. Wynn Macau has been losing revenue share to Sands and Galaxy Entertainment because Wynn did not have a presence in Cotai. The property’s development budget is $4 billion, and in typical Wynn fashion it will feature unique aspects such as moving floral sculptures of carousel horses, peacocks and tigers. Meanwhile, Wynn Macau is renovating 600 guest rooms in the existing resort that will lead to a 5 percent reduction in rooms, but will be completed at the end of this year. The competition is unavoidable, and will hopefully raise the stakes to draw even more foreign tourists to Macau. The key is to make sure they are comfortable with the process, because once they arrive, the big lights, glitz and glamour sells itself, whether you are from Hong Kong or Houston. 24

Global Gaming Business SEPTEMBER 2013

“From our perspective, any time you have competition there is always reason to have some concern there will be an inflection downward,” Tracy said during his CNBC interview. “But this market has proven that it has the capacity to hold the demand.” Tracy pointed at the infrastructure improvements in southern China, as well China’s growing wealth class and Sands’ current market penetration rates as reasons to maintain a high level of optimism about Macau’s future. “Market share is one of the many metrics we monitor,” he said. “But we are more concerned about creating value for our shareholders through net income, which includes non-gaming revenue.”

Making Macau’s Life of Leisure Non-gaming revenue is becoming a more important resource for Macau every day. Retail, dining, entertainment, sports and nightlife are all key factors in this growth. November’s “Clash in Cotai,” a high-profile boxing match featuring former champion Manny Pacquiao during Thanksgiving weekend, will give China its biggest international sporting platform since the 2008 Beijing Olympics. “We have a detailed process before we consider hosting any event,” Tracy said during his CNBC interview. “It has to be commercially viable, raise the visibility of Macau as a tourist destination and enhance the value of our brand.” Sands Macau has put this strategy into play by hosting major concerts, and both boxing and mixed martial arts fights on HBO and Chinese television. “These kinds of events raise the profile of Macau to the point where we are now a global destination,” Tracy said. Despite the many levels and opportunities of entering the Macau and Asian gaming markets, the fundamentals of respecting the business, government and personal culture of Asians remain vital for success. “The biggest story in Asia is getting gaming owners, developers and investors to understand the mid- to long-term necessary strategic value of getting into Asia,” says Macomber. “Then, they have to acquire the commitment and courage to do so. “In response, the host countries need to understand that they will have to change in certain ways over time in the ways they conduct business and government in order to maximize this potential. The extent either side waffles, balks or does not respond will influence the slowdown or growth accordingly.” Next month, Part II – Assessing the Asian Casino Competition

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Building

Future

for the

Konami’s expansion in technology, geography and physical plant characterize aggressive programs By Roger Gros

isitors to Las Vegas are often greeted by a view of the Konami Gaming building as they land at McCarran International Airport. The company logo is one of the most prominent on Sunset Road, which runs alongside the runways. But as large as that sign and that building are, Konami has run out of space, and has broken ground on an expansion project that will more than double the size of the existing building. The need for more space is a direct result of the explosive growth the company has experienced over the past five years under the leadership of President and CEO Satoshi Sakamoto and Executive Vice President and COO Steve Sutherland. The story of Konami is one of diligence, research and customer service, along with games that produce and systems that are today considered some of the finest in the business. Sutherland says the company’s core mission is to provide value. “We will continue to offer a balance of products to the market,” he explains. “We engage in daily dialogue with our customers, and they are requesting a variety of acquisition options—sale, lease, and participation. One thing that remains consistent, however, is that Konami products provide a premium experience at a reasonable price. This is how we define value.” Several years ago, Sutherland defined the goals of Konami as wanting to stand on the “podium” as one of the top three slot manufacturers. He says the company has worked diligently to achieve that goal. “Over the last few years we have made excellent progress expanding our install base and placing innovative games on casino floors around the world. However, there’s still more work to be done,” he says. “We continue to have an excellent pipeline of products that perform at the top of their class and this will drive our growth, but we are not the type of company that will rest on past success. We must continue to push the envelope with products like Titan 360, the Podium Monument and the exciting new Rapid Revolver. We can further expand our reach into emerging markets and introduce our products to new players around the world.” Sutherland acknowledges, however, that there are many other slot companies that have also upped their games as the technology leaps forward. “The competition is getting stronger, and it just means that we have to raise our game and be that much better,” he says. “There are a number of new markets on the horizon both domestically and internationally that will help us place 26

Global Gaming Business SEPTEMBER 2013

‘When you look at the current industry situation, American manufacturers are leading the U.S. market, and Australian companies are leading the Australian market, so why not have a Japanese company leading in the Japanese market?’ — Satoshi Sakamoto, CEO more units and drive higher ship share. With new product offerings like Podium Monument, SeleXion, Dragon’s Victory, the award-winning Dynamic 5 and Rapid Revolver, we will continue to grow our ship share in the markets in which we compete. We are also seeing success with new game themes on our KP3 platform, such as Solstice Celebration, Mystical Pharaoh and Dragon’s Law.”

Japanese Parent Konami Gaming, Inc. is part of the multi-national Konami Group, with many other business interests, including video games, toys, trading cards, anime, pachislot machines for the Japanese market, fitness centers in Japan and more. The parent Konami Corporation was founded in 1969 as a jukebox rental/repair business, expanding to include arcade games in 1973. The company produced such popular games as Frogger, Scramble and Super Cobra. Today, the company continues to produce popular games for internet and mobile platforms. In the gaming industry, Konami Gaming has risen steadily in market and ship share, and its recent products have turned heads. “When Konami entered the gaming market, we did so realizing that our core competency is entertainment know-how and amusement technology,” says Sakamoto. “However, we didn’t have any experience with gaming regulations and customer trends, so we started with slot manufacture to familiarize ourselves with this industry and establish base R&D.” Konami’s expansion project in Las Vegas will be able to satisfy all the elements of the company—manufacturing, research and development, and ad-

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ministration. Tom Jingoli, Konami’s chief compliance officer and senior vice president, says the building will build slots for at least half of the world, with a potential of producing up to 50,000 machines annually if necessary. “We’ll be able to do all the manufacturing for North America, South America and Europe in this facility,” he —Steve Sutherland, COO says. “It will satisfy our growth needs for the next seven years or more.” much interest from casino customers. Although the original building was thought to be large enough for any “The response to the new Podium Goliath product has been very strong and growth, Sakamoto believes the expansion demonstrates the company’s commitit continues to deliver solid performance in the field,” Sutherland says. “While its ment to the gaming industry. oversized form factor is one that has historically been used by our competitors for “Our current building was designed in the very beginning for future extension to the adjoining land,” he says. “Fortunately our business grew faster than ex- novelty type products, the Podium Goliath is being used more like the original Podium. In fact, our customers are having success installing it in pods of three, pected so we redesigned the facility not only for our original product, but for and because we have made the entire KP3 game library available, with the origicoping with the demand of both video and stepper slots.” nal, successful math, the Podium Goliath is being played more like a traditional Jingoli says Sakamoto realized early on that the company would outgrow the machine but with the added draw of the large-format monitors, seating and butcurrent building, “so he told me to examine the purchase of the empty lot next ton panel. We will be showing some new dual-screen bonusing features like the door. So after negotiations with the owners, we bought the lot in late 2007.” Gigantic Wheel of Winning at G2E which will only bolster the Goliath’s sucWhile the deal wasn’t the best fiscal decision the company made, the new cess.” building will make it all worthwhile. “We also added the Dynamic 5 cabinet this year,” Sutherland continues. “If this was a real estate investment, it would not have been a great deal,” Jin“This new cabinet, which won the Gaming & Technology award from Global goli laughs. “We bought high and are now going to develop low. But it is an inGaming Business for the most innovative new slot last year, is really a hybrid vestment in the future of the company, so we’re excited about getting in there.” product because it leverages interactive, dual mechanical reels as well as a fully inThe new building features 200,000 square feet of space (to go along with the tegrated video top box monitor. Our engineers have created an experience for 160,000 in the existing building). It is also an LEED Silver project, meaning it is players where they can engage with the primary reels, an exciting set of translusustainable and environmentally friendly. cent outer reels, and a video monitor that becomes part of the overall game expe“It will have geothermal heating and cooling,” Jingoli says. “We recently finrience. Initially launched as a slant cabinet, we will be unveiling a new upright ished drilling the wells and got great results. It’s going to be a true state-of-the-art cabinet Dynamic 5 product at G2E, and it is already getting some strong interest facility.” from customers.” Sakamoto says the expansion will provide Konami employees with the tools The company’s Advantage Revolution traces its roots to the Konami R&D they need to succeed in a comfortable and sustainable environment. center in Japan. “We always want to provide the best possible working conditions for our “The Advantage Revolution is really one of the first products that included team members,” he says. “Although this is a huge manufacturing facility, it will be attributes taken directly from our amusement division in Asia,” says Sutherland. fully air conditioned to ensure the comfort of our employees during the hot summer months. Furthermore, we have been considering how we could make our fac- “As a result, the revolving center unit for the first time offered mechanical reels, a video display, and other entertaining bonus features. An initial hit when it was tory more environmentally friendly. Using new construction technology, our launched, we have continued to support this cabinet by developing new games design engineers provided the solutions to enable us to meet both objectives.” with new math and new bonus features for our customers. At G2E this year, we will unveil new Advantage Revolution Rock Around the Clock titles including Theme For Success Rebel Without a Watch and Triple Clock Rocking as well as other exciting RevoKonami games are very recognizable, and the R&D teams strive to produce crelution titles like Glittering Vegas and Chameleon Diamonds.” ative and original themes that endure beyond a pop-culture 15 minutes of fame. Matt Reback, senior director of marketing, says the company’s “biggest” reBecause of that dedication, Konami has been very careful in choosing outside licent release was the Titan 360, a giant carousel with some unique features. The censing agreements. product debuted at Harrah’s Resort in Atlantic City in June and has been a “big” “We have taken a deliberate and measured approach to licensed products,” success. explains Sutherland. “We have a very successful licensed brand in Rock Around “Titan 360 is a new large-format bonus game built above eight Konami video the Clock and recently announced a partnership with Hasbro for developing a seslot machines,” he explains. “Titan 360 uses Konami’s proven performing video ries of Dungeons & Dragons-themed products. Our philosophy is to develop titles with familiar game mechanics as base games. For an additional 20-credit games that are strong enough to stand on their own without the benefit of liwager per bet level, players are given the opportunity to enter the Rise to Wealth censed themes, while evaluating licensing opportunities for the purposes of prodbonus when a lock symbol appears on reel 1 and a key symbol appears on reel 5. uct diversification. We are unique in our disciplined approach, but our customers “This unique bonus experience features a near-vertical mechanical spinning have rewarded us for our commitment to providing the highest quality products.” wheel with pockets, and a ball that is launched from one side and rocks back and Game formats are also a distinguishable feature for Konami games, with new forth until it lands in a pocket. If the ball lands in a red pocket, the values on the cabinets and video displays that draw in the slot players. Podium Goliath, with wheel increase for bigger rewards. This bonus event happens frequently and draws dual 32-inch monitors, is an impressive device on the floor that has attracted

‘We continue to have an excellent pipeline of products that perform at the top of their class, and this will drive our growth, but we are not the type of company that will rest on past success.’

SEPTEMBER 2013 www.ggbmagazine.com

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a crowd with everyone cheering for the big awards. The progressive awards scale, based upon the bet level for the player, provides the opportunity for players to enter the bonus regardless of their bet.”

System Centric Konami approaches its system design in different ways than most slot manufacturers. Understanding that casino customers will do much more than play slot machines, Konami’s Synkros casino management system has flexibility for any size casino operation, as well as an ability to drill down deep into the customer experience. “Our systems team is staffed with former property operators, and we reach out to customers to find out how we can help them drive their businesses,” says Sutherland. “We understand that when complex data is presented in a visual form, understanding and comprehension of that data is greatly enhanced. We realized that our customers would like to ‘see’ their data in order to generate insights, which allow them to make critical business decisions quickly. Our mobile and dashboard offerings will provide every level of management with personalized KPIs displayed on mobile devices in order to help them drive their business forward.” A new addition to Synkros is an instant tournament module, True-Time Tournaments, that enables casino operators to add excitement to the casino floor at any time. “Player-On-Demand tournaments provide casino operators with the ability to award tournament entries as incentive rewards,” he explains. “The benefits of ondemand tournaments are twofold. First, operators love it because it eliminates the hassles and costs associated with setting up traditional, roped-off tournaments— it’s fully automated, and other than setting up the program, it’s largely labor-free. “Second, players love it because they get to play their tournament when they want—no more lines, and it’s on their own schedule. With some additional system hardware, any touch-screen video machine can become a tournament game using True-Time Tournaments.” Maybe the most attractive element of Synkros is the ability to track non-gaming spend across the entire enterprise. “The benefits of tracking non-gaming spend for casino operators are clear when one considers the true value of a loyalty program,” says Sutherland. “For resort guests, any spend, regardless of whether it involves gaming or non-gaming activities, should be tied into their loyalty program, because every dollar spent should equate to value at some determined margin for the property. Over the past year, we have been enhancing this functionality to ensure that the casino operator is able to accurately see and calculate more specific data from gaming and nongaming points of sale. Accurate guest valuation can result in more effective reinvestment programs, which drive top- and bottom-line growth.” R&D continues to be an important part of any slot company, and Sakamoto says the addition of the large Vegas facility will complement other Konami studios around the world. “We have a great R&D team in Japan,” he says. “Our teams work collectively across our R&D locations in the U.S., Australia and Japan. Each center has its own core strengths and expertise. It may be that our Las Vegas center is big, but it does not necessarily follow that big ideas or high technology only come from a big facility. It is the people surrounding the technology and entertainment that make the difference.” Sakamoto believes increased gaming R&D in Japan will pay benefits to the company. “I have recently shifted teams from Konami’s amusement and pachislot departments into the gaming division to increase the capacity of R&D in Japan. Moving forward, this team will support our Australian R&D as their work gradu28

Global Gaming Business SEPTEMBER 2013

ally comes through. The Japanese pachinko and pachislot market is mature, and with a long history. Pachislot is especially popular with the younger generation. There are lots of experienced game designers in Japan with the potential to move into gaming. They will require a little bit of time to gain knowledge of the gaming market and its regulations. These designers will be in a position to contribute to the Australian operation shortly.” Much attention has been devoted to online gaming, and Sutherland says those efforts have begun to bear fruit. “We have spent a significant amount of effort evaluating this space and the optimal way to enter this segment of the industry,” he says. “We understand this environment is fluid and we want to ensure that our strategy doesn’t adversely impact that of our customers. We are a partner to our customers, and we are looking to augment our relationships with them through offerings in the i-gaming space. We have now moved beyond the evaluation phase of this sector and have begun putting the right resources in place to further refine and execute on our strategy based on the evolving market conditions.” Sakamoto cautions, however, that Konami’s main concern is the well-being of its current customers. “Slot machine products differ significantly from the online gaming segment,” he says. “Customers need to come to a casino to be entertained and experience these products.”

International Expansion While the primary market for Konami Gaming remains North America, the company is aggressively eyeing other regions of the world for growth opportunities. “Our strongest market remains North America,” says Sutherland. “However, we are gaining momentum in a number of international markets including Asia and South America. We have also recently engaged additional business partners in Europe to help us distribute our product and gain broader penetration. We have recently opened an office in Singapore, which serves the growing Asian markets of Singapore and Macau. We see these markets as having tremendous growth potential for Konami over the next several years. “We have aggressive goals to grow the size of this company and we are investing in key resources in order to ensure that we are successful. Our growth will occur domestically here in the U.S., but we also expect to see continued growth in Latin America, the Caribbean, Asia and Europe.” Sakamoto believes an increased concentration on the Australia-New Zealand market will help grow market share there. “In recent years, competitors have increased in the Australian market,” he says. “Unfortunately, our market share has been down for the past three or four years. We had previously shifted R&D support from Japan to the U.S. and other markets. During that time, the demographics have changed in Australia, and the Australian market now requires more Asian themes. “As a leader with focus on the Australian and Asian markets, I have no doubt we will recover and gradually increase market share.” And what would the possible legalization of gaming in its home country mean to Konami? “There are indications that the Japanese market has potential,” says Sakamoto. “There are 4.5 million pachinko and pachislot machines across Japan. According to a recent magazine article, net income (the same level as casino net income) from the pachinko and pachislot industries is about $30 billion. It is one of the largest markets, even in comparison with existing casino markets. “When you look at the current industry situation, American manufacturers are leading the U.S. market, and Australian companies are leading the Australian market, so why not have a Japanese company leading in the Japanese market?”

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GLOBAL GAMES 2013 Our annual spotlight on the gaming industry’s slot supply sector By Frank Legato very year since Global Gaming Business began publishing in 2002, we have gone to all of the major slot manufacturers months before the Global Gaming Expo trade show for a sneak-peek at the games they will be launching for the coming year. G2E, of course, is where all the world’s slot-makers go every year to launch the new “model year,” so to speak, showing operators gathered in one location—the Sands Expo Center in Las Vegas—all of the innovative products they intend to release to the market over the ensuing 12 months. Every year, it seems, the mind-boggling collection of new slot games in all genres seems to get more impressive. This year is no different. With recessionary slumps behind them and operators finally seeking to renew their floors with new machines, the slot manufacturers once again will wow the industry with an amazing array of innovation. As usual, the slot sector’s coming-out party will be marked by a lot of star power, from both past and present—from Bally’s new game featuring the late Michael Jackson and its new game featuring ZZ Top to Aristocrat’s nods to classic Batman Adam West, WMS Gaming’s impressive re-creation of Michael Keaton’s title character in Beetlejuice, to IGT’s “Center Stage” treatment of the classic film Jurassic Park and more. But branded slots are only part of the story that will make this year’s G2E

Global Gaming Business SEPTEMBER 2013

special. All of the major manufacturers have beefed up core video slots with great new cabinets (including radical new shapes like “Pro Wave” from Bally), play mechanics, multiple progressives, mystery bonus events, stacking wild symbols, remarkable 3D (check out “Sphinx 3D” from Spielo), intriguing reel setups (Konami’s “Rapid Revolver,” Incredible Technologies’ “Sidewinder Reels”), new community-style events (Aruze’s “Sinbad”) and numerous other new ways to play—including not only the traditional kind, but new employment of skill factors, and even knowledge-based games (AGS’ “Ripley’s Believe It Or Not!”). Many slot manufacturers also will use the big trade show to demonstrate platforms which will take all of that content to new distribution channels—namely, online, mobile and social gaming. However, G2E is mainly about the content itself, and how the manufacturers have translated the everadvancing sophistication of digital technology into new experiences on the slot floor. On the following pages, in alphabetical order by manufacturer, you will find the best of what the slot-supply segment of the gaming industry has to offer. This year’s collection will have operators looking forward to next year, and to offering their players the best experience the slot floor has to offer. All articles written by Frank Legato, unless otherwise indicated.

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>>>GLOBAL GAMES 2013 | Ainsworth Game Technology |

Wheels, Reels and Digital Deals Australia’s Ainsworth Game Technology seeks success in new game visuals that play both in physical cabinets and online gaming sites

insworth Game Technology is looking to continue its winning ways of the recent past. To achieve that goal on the product side of the equation, the Australia-based slot producer is calling on new games and new methods of delivering those games to players. As Scott Clarebrough, Ainsworth’s group general manager of strategy and development, puts it, “Ainsworth is committed to producing a quality pipeline of best-in-the-class games for any gaming floor.” Clarebrough says that by combining “leading technologies and platforms with entertaining gaming content,” the company’s products are guaranteed to provide what the company is using for its G2E slogan this year: “a winning play.” At G2E 2013, Ainsworth will be showing its latest innovative Premium Plus slot titles. Prominent among the new games is “Reels of Wheels,” which features animated graphics of five colorful wheels spinning on the huge 32-inch top screen of the A560 Wide Boy upright cabinet. Each spinning wheel is linked to a corresponding wheel symbol that can appear on the main game screen reels. The spinning reels will determine special wild symbols that trigger free games and win multipliers. Players are continuously rewarded, with the possibility of hitting four levels of frequently occurring standalone progressives, including a $5,000 grand progressive jackpot. Reels of Wheels had its debut installation in Australia in May. The client is the 36,000-member St. Mary’s Rugby League Club in New South Wales. Those familiar with Australia’s huge sports and social club system, in which slots are legal and highly regulated by the individual state, understand the importance of making a good first impression within this world. Stuart Graham, gaming manager at the club, said of the experience, “Teaming up with Ainsworth to be the first to install Reels of Wheels demonstrates our continuing efforts to bring more excitement and world-class games to our players at St. Mary’s Leagues Club. Since its installation, Reels of Wheels has been a crowd favorite on our gaming floor and has exceeded our performance expectations.” Other titles in the new Premium Plus game series are “Inca Reef Grand” and “Red Wolf,” both on the A560 Mega Top cabinet, and the games “King Spin,” “Vegas King,” “Magnificent 7’s,” “Around the Board” and “Cash Challenge.” The existing GamePlus library will be expanded with several new titles. This signature game group will welcome new additions “Quad Shot,” “Double Hit,” “Triple Shot,” “Play 100Lines/50Lines/40Lines,” “High Denom” and “Keno King.” Also appearing at G2E will be the new games “Wheel Winner,” “Bonus Bonanza” and “Crazy Ways.” The list of Ainsworth’s linked progressive jackpot games includes the titles “Treasure Storm,” “Oriental Fortune,” “Whopper Reels,” “Rampaging Rhino”

and “Sweet Zone.” Also on display at G2E will be the mystery jackpot products “Golden Goose Mystery,” “Big Chief Mystery,” “Glitter Mystery,” “Wolf King II Mystery” and “Hummin Mystery,” along with many other new-concept game brands due for release in 2013-14. In the area of slot cabinets, Ainsworth continues to push forward with its A560 series. There are now five versions available to all markets worldwide. The original A560 cabinet is equipped with dual high-resolution, 22inch touch-screen LCD monitors and can have as many as 18 LED programmable play buttons. The up-gunned Super A560 is topped off with a third, 19-inch LCD display. The A560 ST, a slant-top version of the cabinet, is powered by a fourthgeneration QuadTronic processor. Features include single or dual LCD screens of 23 and 27 inches, an enhanced speaker system, ambient cabinet lighting and ergonomic design. The 15 buttons on the play deck are fully programmable. The A560 ST runs all the Ainsworth GamePlus titles. For those seeking a bigger cabinet presence without sacrificing floor space, the A560 Mega Top sports a 32-inch, vertically mounted second LCD display above the standard 22-inch horizontal main screen. The actual footprint of the device is only 560 mm by 500 mm—about three square feet. The Mega Top incorporates the fourth-generation QuadTronic processor and the same audio-visual upgrades as the ST version, and has the capability to run titles from the Premium Plus game series. The fifth version is the A560 Wide Boy, which as the name might sugSEPTEMBER 2013 www.ggbmagazine.com

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>>>GLOBAL GAMES 2013 We’re thrilled more players will have the chance to play our online “games through this partnership. Like Bally, we believe that a business-tobusiness approach to the online market allows our valued customers the best options for providing innovative and compelling content.

”

—Scott Clarebrough, Ainsworth Group GM of Strategy and Development

gest features a 32-inch, horizontally mounted second LCD screen. The specs of the cabinet and game capabilities mirror those of the Mega Top, although the difference in appearance as a result of the second screen’s positioning is striking. Also, the Wide Boy is the cabinet that runs the new Reels of Wheels game.

Ainsworth Online Ainsworth is competing in the online gaming space as well. An agreement with awardwinning internet gaming system provider GameAccount Network recently resulted in production of Ainsworth’s first 10 online games. The games are already live at GameAccount Network’s B2C site MoneyGaming.com. The games have also been launched at online bingo and casino sites belonging to the U.K.’s Rank Group, namely MeccaBingo.com and GrosvenorCasino.com. The online venture will see content released to four more operators in the U.K., 10 operators in Italy and in the new jurisdiction of New Jersey in the U.S. Separately, in March, Ainsworth signed an online integration contract with Bally Technologies that will see them supply content for Bally’s iGaming Platform. Clarebrough said at the time, “We’re thrilled more players will have the chance to play our online games through this partnership. Like Bally, we believe that a businessto-business approach to the online market allows our valued customers the best options for providing innovative and compelling content.” The Bally agreement is one of the fruits 32

Global Gaming Business SEPTEMBER 2013

of the labor Ainsworth has put into North America. According to the FY 2013 sixmonth financial report, for the period which closed at the end of 2012, revenue from “key market” North America grew 237 percent on the previous year, to AUD$21.6 million. The figure represented 71 percent of total international revenue for Ainsworth. According to a profit guidance for the second half of FY 2013, issued at the end of June, North American revenue for the period ending June 30 is expected to be similar as Ainsworth “continues to pursue its strategy of placing products on a participation basis.” Full financial results for the year were expected at the end of August. The work in North America has been under the direct leadership of Ainsworth CEO Danny Gladstone, who has been in residence in the U.S. In his November 2012 address to the Annual General Meeting, Executive Chairman Len Ainsworth said that Gladstone will lead the U.S. efforts until late 2013. According to an Ainsworth spokesperson, this is still the plan, although as of this writing there had been no announcement of a new head for North America. Lastly, effective June 30, Stewart Wallis resigned from the Board of Directors after 11 years of service. On behalf of the board, Ainsworth expressed his appreciation for Wallis’ past dedication and guidance. Two new members to the board, David Macintosh and Colin Henson, were named prior to Wallis stepping down. —by Rich Geller

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>>>GLOBAL GAMES 2013

| American Gaming Systems |

Player Premium AGS brings its “Honor the Player” credo to new premium games, including the “It Pays to Know” series

hen looking at the slots of Las Vegas-based American Gaming Systems, it’s easy to forget that only three years ago, the company was mainly a player only in Class II markets like Oklahoma. While CEO Bob Miodunski has said AGS has no intention of trying to challenge the likes of IGT, Bally and other leading slotmakers in their traditional markets, the games coming from the AGS manufacturing facility these days look like those of a seasoned Class III supplier that is ready to make a run at the top echelons of the slot manufacturing sector. It’s no wonder, when one views the company’s pedigree. Miodunski was CEO of the company that is now Bally Technologies in the early 2000s, including that manufacturer’s most crucial period, when it acquired Sierra Design Group, and the technology that would propel Bally back to its former glory. After being coaxed out of retirement in 2010 to take the reins of what was still mainly a Class II supplier, Miodunski sought out the best talent from the Class III supplier market, including Paul Lofgren, his former executive VP at Bally, who now heads sales at AGS. He then made what is arguably his most important hire, bringing in Dr. Olaf Vancura, one of the most respected slot designers in the business, as VP of game development. He has continued to bring in top talent, most recently installing Ken Bossingham, the longtime Atronic and Spielo executive, as the new chief operating officer of AGS. But it is Vancura—with the invaluable support of Sales VP Lofgren—who has driven the march of AGS into new Class III markets. His arrival was just in time for the perfection of the manufacturer’s new slot platform, Roadrunner, and what he has done with that technology has distinguished AGS among slot-makers— 34

Global Gaming Business SEPTEMBER 2013

and, by the way, among players in the casinos as well. The fact that players love AGS games can be traced to the slogan—a mantra, really—that Vancura established for his game design team, “Honor the Player.” The general idea is to give the player lots of innovative bonus events, and to offer them in a manner that gives the player a fair shake. In practical terms, the fairness factor first came to light with last year’s pirate-themed masterpiece, “Blackbeard’s Treasure.” The game was the first Class III hit for AGS, not only because of its feature-packed nature— it contains picking bonuses, free spins, a spinning wheel, a multiple progressive, mystery wild symbols and multipliers, and just about any other game mechanic you can imagine—but because everything in the game gives the player a fair shake. The bonus wheel is a “fair wheel,” which means it is equally weighted between the slices. The base-game math departs from normal virtual-reel mapping; each symbol on the strips is equally likely to appear. Picking bonuses are equally weighted. “The fair wheel is a good example of how ‘Honor the Player’ manifests itself in our games,” says Vancura. “Not only is each segment equally likely; in some of our titles, the wheel includes several instances of the best segment. When we give the player a choice of objects in a pick bonus, it is always a free choice—we haven’t forced that outcome.” “Blackbeard” set the standard for the Roadrunner platform, and for the premium games that would follow it. “Blackbeard has performed fantastically,” says Andrew Burke, senior director of product management at AGS. “It’s the first premium wheel product AGS has ever placed, and customers are really excited about it. It has provided great momentum for us.”

It Pays to Know Tons of features and fair play for the customer were not the only benefits Vancura brought to AGS. He brought with him an idea about bonus slots he had nurtured more than a decade ago when he worked for the former Mikohn, where he developed a series of hit games like “Trivial Pursuit,” “Battleship,” and the first incarnation of a slot brand which kicked off a new series this summer for AGS, “Ripley’s Believe It Or Not!” The common thread to all those former Mikohn games was that knowledge played a part in the bonus game. Trivia questions, or in the case of Battleship, strategic abstract thought, formed the basis of the bonuses, and the more players knew, the higher the rewards. Vancura has brought this idea to AGS in the form of the “It Pays to

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We try to be feature-rich in all our “games. One reason is that players like new game mechanics and new bonus styles. It makes it more interesting for the player, and makes it more likely the player will continue to play. It’s one of the reasons the Roadrunner platform is architected the way it is.

”

—Dr. Olaf Vancura, VP of Game Development

Know” series, kicked off a few months ago with a new take on the “Ripley’s Believe It Or Not!” brand. The core bonus of the new Ripley’s slot is a multiple-choice trivia quiz, the questions involving either general knowledge or some of the famous oddities in the collection of Robert Ripley, who traveled the globe early in the 20th century looking for amazing, odd and quirky facts and people. The brand, of course, was the subject of a long-running series of comics in newspapers across the U.S. The “Honor the Player” mantra has dovetailed into the trivia quiz in Ripley’s. During primary game play, the player can earn up to three “assist features” which are saved for the bonus—the “Eliminator,” which automatically eliminates one of the incorrect answers to the bonus question; the “Stats” assist, which presents historical data about how other players have answered the question; and the “Re-Do,” which gives the player a second chance at the top answer if wrong on the first guess. In the Ripley’s trivia bonus, if the player answers correctly on the first try, one of the five progressives is awarded. If not, a fractional portion of the progressive connected to the question is offered on the next try. A consolation prize is awarded if the player is totally skunked by the question. The same principles of fairness apply in the two new “It Pays to Know” games being launched at G2E—“Are You Smarter Than a 5th Grader?,” based on the famous general-knowledge game show; and “Family Feud,” based on the other famous game show in which family members guess what the most popular responses were in survey groups asked certain questions. The 5th Grader game breaks the bonus trivia questions into five categories—1st Grade Math, 2nd Grade History, 3rd Grade Astronomy, 4th Grade Geography and 5th Grade Science. The Family Feud game follows the pattern of the famous game show, with the progressive awarded for the most popular answer to each question, according to surveys.

Vancura stresses that while all players are guaranteed an award in each of the bonus trivia quizzes, more knowledgeable players win more. “A player can show what he knows, and as a result—unlike most slots—can have a different outcome than if a monkey was tapping the buttons.” “Other than video poker,” adds Burke, “when was the last time you influenced the outcome of a slot game?” Players who play one of the three games in the series frequently will get better at the quizzes, Vancura says, and may see the same questions repeated in different bonus rounds, making it easy to win one of the progressives—for a while, at least. According to Vancura, to make sure the casinos have a fair shot as well as the players, AGS will refresh each of the games every six months with a new batch of trivia questions.

Feature-Packed Games In addition to the trivia-based bonuses, all of the premium games in the “It Pays to Know” series follow the lead of “Blackbeard” in that they are packed with a variety of primary and secondary bonus events, primary game bonus awards, mystery events and surprise awards. “We try to be feature-rich in all our games,” says Vancura. “One reason is that players like new game mechanics and new bonus styles. It SEPTEMBER 2013 www.ggbmagazine.com

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>>>GLOBAL GAMES 2013 the first time in the company’s history, “weForhave premium product available, and 2013 for us is all about the premium games. We’re really excited about G2E; this is the best lineup of product we’ve ever had.

”

—Andrew Burke, Senior Director of Product Management

makes it more interesting for the player, and makes it more likely the player will continue to play. It’s one of the reasons the Roadrunner platform is architected the way it is. “Roadrunner’s architectural design is modular, and once a feature becomes a module, we add it to the Roadrunner core. As a result, it becomes easier for us going forward to reassemble these modules into future titles.” Because of this, games throughout the AGS library contain unique bonus events. There is the “Chain Reaction” feature in picking bonuses for games like “Liberty 7s Revolution,” a new wheel game based on an iconic Class II brand in Oklahoma— picking certain objects in a field causes explosions that uncover several other awards instantly, making it easier to clear the field of bonuses. There is the “Lock ‘em Up Wilds” feature in “Patriot Spins,” which keeps wild symbols in place for the free spin bonuses—not to mention the random “rocket,” which adds up to eight additional wild symbols to a free spin. There are new AGS video poker games like “Multi-Shot Poker,” which evaluates all possible combinations in a five-card draw to result in multiple wins—even several four-of-a-kind payoffs on a single hand—and “Extreme Bonus Quads,” with an entirely new, original pay table. There is the AGS stable of pachinko-style games, in which the player can see that gravity is the sole determinant of the award won—including progressives—when a ball tumbles through the game board toward prize pockets at the bottom of the top box. Finally, there is the Illinois VLT market, for which AGS has designed a multigame unit called “Gambler’s Choice,” contributing to an installed base already approaching 1,000 in that new market. AGS will display all of these and more at G2E—including a new, giant slant-top cabinet with a 42-inch monitor—but according to Burke, the focus this year will be on the premium products like the knowledge-based games. “For the first time in the company’s history, we have premium product available, and 2013 for us is all about the premium games,” he says. “We’re really excited about G2E; this is the best lineup of product we’ve ever had.” “The premium space is highly competitive,” adds Vancura. “We recognize that, and are striving to create a strong pipeline of premium games.” Vancura adds that the company’s licensed jurisdictions continue to expand, with Vic Gallo, AGS general counsel, aggressively pursuing licensing in new markets. As that expansion has progressed, Vancura’s team has been working hard to develop new product, much of it in the premium category. “All of this effort is starting to come to fruition for us as a company,” Vancura says. “It’s going to be an exciting time over the next 12 months, as we place premium product in all these new jurisdictions. “We’re on the cusp of greatness.”

Global Gaming Business SEPTEMBER 2013

ggb8.375x10.875-0813ol.indd 1

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>>>GLOBAL GAMES 2013 | Aristocrat Technologies |

Aiming High Aristocrat aims for the top of the slot market with new game styles, new takes on classics, and some of the top game development talent in the business

ristocrat Leisure Limited turns 60 this year, but the company, which built its first slot machine in Australia in 1953, is just getting started. Aristocrat has undergone something of a rebirth over the past few years, but this year marks a new era, centered where the company has concentrated much of its effort recently—in North America, with the Australian manufacturer’s Las Vegas-based subsidiary, Aristocrat Technologies, Inc., at the epicenter. While Australia—a market Aristocrat has dominated for six decades—is still the home base for the parent company, the U.S. has become entrenched as the slotmaker’s No. 1 market. It is where the company’s legacy multi-line video slots, after transforming the slot market in the 1990s, have remained favorites of thousands of players. More recently, though, two words have spelled Aristocrat’s success in the U.S.: gaming operations. Aristocrat has spent the past several years improving, refining and adding to its gaming operations division, which has been the company’s top revenue-producer. High-profile licensed brands from “JAWS” to “Mission: Impossible” to “Tarzan” to “Superman” have defined the company’s recent success. Aristocrat’s 60th year was marked by a new milestone this summer when the company passed the 7,000-unit mark in gaming operations. “We’re not going to stop until we pass 10,000,” says Dallas Orchard, vice president of gaming operations, who quickly adds, “and we’re not stopping at that point either.” Aristocrat’s tagline for this year’s G2E show is “Transforming the Game,” and that is precisely what the company has been doing in all of its game and system segments. “The tagline speaks to everything,” says Orchard. “It speaks to the diversity of our portfolio; it speaks to bringing in new talent. It’s a bold statement from a company that’s about to hit its stride.” Many feel the company has already hit its stride. Spending on research and de38

Global Gaming Business SEPTEMBER 2013

velopment—or, as the company categorizes it, “D&D,” for design and development—has increased 20 percent year-on-year. Recurring-revenue games, including more high-profile licensed brands than ever, have never been stronger for the company. This year, however, investments have been made not only to increase those operations numbers even further, but to bolster every other area of business. According to Orchard, the company took a methodical approach to its investments in D&D, concentrating on four major divisions—Core Games, Entertainment Games, the Jackpot Segment and, of course, Gaming Operations. It’s not that any of the categories has been neglected in the past. The core games segment was already the best in the business, notes Orchard. “By increasing our D&D spend 20 percent year-on-year, we’re proving to the market we’re able to diversify and be successful,” he says, “while we absolutely make sure we’ve refocused our core organic game designers on what they’re the best in the world at, and that’s producing great Aristocrat gambler-style content. The quality of those games continues to get better.” “All these areas of investment are complementary to our core,” adds Matt Wilson, vice president of marketing for the Americas. “We’re not walking away from what made us great; we’re adding segments around our core, and that’s what’s called for the increase in D&D investment.”

Top Talent One of the most important areas of investment has been to bring in new talent. In that respect, Aristocrat scored three major coups in the past year: Dan Marks, the creative force behind High 5 Games—one of the most highly regarded of the third-party content suppliers, responsible for hit titles

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>>>GLOBAL GAMES 2013 Walking Dead” is based on ‘the“Thefourth-season AMC series

from IGT’s “Da Vinci Diamonds” to Bally’s “Green Machine”—now works exclusively for Aristocrat. According to Wilson, the addition of Marks gives a giant boost to the company’s Entertainment Games segment. “The entertainment segment is a very large portion of the North American market, and we wanted to participate in it in a meaningful way,” Wilson says. “Dan has an amazing pedigree and skill set around building visually beautiful games that have been very successful in the North American market. He has an exclusive arrangement with Aristocrat, and will work on the evolution of our entertainment segment.” Marks will deliver more than 20 games to Aristocrat within the next year. “He’s got the industry’s best track record in building entertainment games, and it’s the ultimate complementary skill set to our internal ability to produce the industry’s best core volatile games,” Wilson says. For the stand-alone progressive jackpot segment, the company has brought back one of its former top game designers, Scott Olive, who will now work fulltime for Aristocrat as a third-party designer. Olive was the inventor of Aristocrat’s groundbreaking Hyperlink progressive product, the multi-progressive that propelled the slot-maker’s success in the early 2000s. “Scott created Hyperlink and a number of other innovative jackpot mechanics,” says Wilson. “We wanted to bring him back into the fray to give us the ability to evolve the jackpot progressive segment even further.” Perhaps the biggest coup will manifest itself in the Gaming Operations area. In February, Aristocrat announced the hiring of one of the industry’s game design legends, Joe Kaminkow, as senior vice president of game development. In two stints with slot-maker International Game Technology, Kaminkow set the tone for two different eras in the slot sector, ushering in IGT’s entertainmentthemed slots of the late 1990s and early 2000s with “The Beverly Hillbillies,” “The Price Is Right” and several incarnations of “Wheel Of Fortune;” and more recently, contributing to an IGT rebirth with games like “The Dark Knight,” “Sex and the City,” “Ghostbusters” and many others. “Our success in gaming operations has grown on the back of excellent game designers here and in Australia,” says Orchard, “and we’re building on that by bringing in Joe Kaminkow, who has designed some of the greatest-ever gaming operations products in the marketplace. We’re really proud to have Joe on 40

Global Gaming Business SEPTEMBER 2013

that has grown into the most-watched drama in basic cable history. There will, naturally, be Aristocrat “zombies” walking the trade-show floor.

’

board; we think it’s going to put us over the top.” Wilson adds that having “the best talent in the industry for every segment of the business” gives Aristocrat a unique position as it goes into this year’s G2E show, a fact that will be obvious when looking at the new products at Aristocrat’s Booth No. 1141.

Brand Power Aristocrat’s top talent will be on display with a collection of games at G2E that promises to be the most memorable in the slot-maker’s 60 years. Heading up the collection will be the cream of the gaming operations side—including more licensed brands than Aristocrat has ever brought to the big show. The company has secured a remarkable collection of high-profile brands, some which were still under development at press time. And brands like these, Orchard says, are right in Kaminkow’s wheelhouse. Take “Flashdance,” based on the iconic 1983 film starring Jennifer Beals as a Pittsburgh welder living in a converted factory building who transforms herself into a professional dancer. “We already had that in development before we brought Joe Kaminkow in,” recalls Orchard, “but after he was done with it, it was a night-and-day change. The attention to detail is sensational, and the way he brought it to life by using that top box, and having symbols unlock additional features in the top box, is all great. “We showed this to a group of our top customers, and they were very impressed. It’s going to be wildly popular.” The game, in Aristocrat’s Feature Top Box Video group, combines intricate animation, graphics and video footage of the movie’s dancing sequences with the film’s famous music—“Maniac Free Spins,” “What A Feeling Free Spins”—all driven home to the player with the new Aristocrat Surround Sound Chair. Another major branded slot in Aristocrat’s lineup aims for a completely different demographic—most not even born when Flashdance came out, but forming the core of younger players casinos have been increasingly courting. “The Walking Dead” slot game was developed by a team led by Ted Hase in the company’s Innovation Studio—the same team that created the Tarzan family of games. The game is based on the first season of the AMC series that has grown into the most-watched drama in basic cable history, with season 3 reaching 55.7 million total viewers. (A second version of the game, “The Walking Dead Season 2,” is slated for a 2014 release.) The show’s theme of humans trying to survive as hordes of zombies swarm the ruins of a post-apocalyptic world is reproduced in video, animation and reel

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symbols under a $500,000 multi-site progressive jackpot housed in Aristocrat’s Vervehd cabinet, featuring a 31.5-inch LCD top monitor. There will, naturally, be Aristocrat “zombies” walking the trade-show floor. Meanwhile, the older casino demographic—namely, baby boomers—is targeted by a third major licensed brand in “Batman 1966.” This one was a perfect fit for Kaminkow, whose masterful design of the games based on the modernday Batman film The Dark Knight won accolades for his former employer. This time, he was given the job of recreating the campy 1960s Batman TV series starring Adam West and Burt Ward, complete with all the “Bam!”-“Boom!”-“Crunch!” comic-book sound balloons, villains like Frank Gorshin’s Riddler and Cesar Romero’s Joker, and all the cornball clichés that made the ’60s series so irresistible. “This game is a coming-out party for Joe Kaminkow,” says Orchard. “The hardware alone is going to be something the industry has never seen.” The game is on the Modular Video Platform (MVP), with the large portrait-style top-box screen for bonuses. Few other details on the game were available at press time, but you just know it’s going to say “Same bat time, same bat channel!” somewhere in there. (Holy gaming ops, Batman!) By the way, the original Batmobile—the one custombuilt using an experimental Ford model by George Barris for the Batman series in 1966—will be at the G2E show. Kaminkow happens to own it, and periodically lends it to museums for displays. And, word is, its original driver—Batman himself, Adam West—will be at the Aristocrat booth as well. Not all the brands in the Gaming Ops group will be based on TV or movies. One of the major releases at G2E will be “Buffalo Stampede,” based on the core “Buffalo” brand—the game voted the industry’s top-performing slot machine two years running in a Goldman Sachs survey. Buffalo Stampede takes the popular features of the original into the Vervehd cabinet for the first time, with a base game in a new version of the Xtra Reel Power format, the reel setup with no paylines and wins based on adjacent symbols. This version of the format features reels that expand up to 5x6—six symbols per reel— for a possible 7,776 ways to win on each spin. The game has a two-level local-area progressive jackpot. Other Gaming Ops standouts include “Sherlock Holmes” on the Hybrid cabinet, featuring a unique setup of three mechanical spinning reels accompanied by three sets of video reels, also in three-reel mode. Fourth and fifth mechanical reels are activated during free spins, thanks to Aristocrat’s “Shutter” hybrid technology, which incorporates a video overlay system that can alter the number of reels in a stepper format, or completely cover the reels for a total video bonus event. This is an imposing game, with the theme—based on the original novels by Sir Arthur Conan Doyle—wrapped into the huge Viridian Hybrid cabinet. The portrait-style top-box monitor houses a giant video wheel on which players can win credits, free games, upgrades to a secondary wheel with larger prizes, or one of three progressives, including a linked Grand progressive prize. Other recurring-revenue games to be highlighted at G2E include “Let’s Make A Deal,” which was released this summer; “The Mummy: Tomb of Dragon Empire,” based on the 1999 film starring Brendon Fraser; and “Cash Express Gold Class,”

“Sky Rider” features the new “Max Stacks” brand of stacking symbols.

the newest version of the original Hyperlink multiprogressive game. Slated for 2014 release are a version of Cash Express with new support titles, and a new version of “Let’s Make A Deal,” which is the first game-show title ever done by Aristocrat. The latter game, featuring modern-day host Wayne Brady, mines the No. 1rated daytime game show for all of its best sequences, including the gambling factor that has made the show popular for decades. There also will be a new game in the “Superman” series, called “Superman 1978”—Kaminkow’s take on the popular brand. According to Orchard, Aristocrat recently secured the brand license for this year’s Superman film, Man of Steel, rounding out that brand group to include everything from the DC Comics version of Superman through the superhero’s most recent incarnation. Finally, there will be a several surprises at G2E with brands Aristocrat has secured recently. While the company is keeping a few under wraps while the business details are worked out, there is one new branded slot developed by Kaminkow and slated for launch at the show that will represent a milestone in the slot business: “The Rolling Stones.” Yes, those Rolling Stones, the greatest rock band in the world.

The E-Series The arrival of Marks has prompted Aristocrat to create a new game group. The E-Series, “E” for entertainment, will be launched at the G2E show with several new game groups featuring low volatility, low denominations, lots of paylines and an array of new play mechanics designed for people who play slots mainly for the entertainment value. Heading the list of E-Series slots are “Sky Rider” and “Temple of the Tiger,” each of which features the new “Max Stacks” brand of stacking symbols. While the volatility factor is low compared to Aristocrat’s core games, it is still slightly higher than the main competing group the games target, which is IGT’s Super Stacks series. Sky Rider and Temple of the Tiger will actually be game families, each launching with two base games. The common thread is that the player gets to pick the symbol that will show up as stacked symbols—clustered symbols creating big wins—in free-game spins. The number of free games, up to 36, varies with the value of the symbol chosen, so in effect, the player is selecting the volatility of the free-game bonus round. The other main initial category in the E-Series is “Big Symbol Stacks,” with SEPTEMBER 2013 www.ggbmagazine.com

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>>>GLOBAL GAMES 2013 “Buffalo” was voted the industry’s top-performing slot machine two years running in a Goldman Sachs survey.

a unique stacking feature that incorporates oversized reel symbols that form a stack by covering a three-by-three portion of the reel set. When the Big Symbol Stacks land squarely on the reel set, they have the effect of nine adjacent stacked symbols. When it’s a wild symbol, that’s three entire wild reels. The player also gets the chance to pick the symbol that will form normal stacks in the free-spin round, picking the volatility of the bonus just as in the Max Stacks series. There is even a player-selectable order in which the reels stop. The Big Symbol Stacks series will launch with four game families: “Storm Queen,” “Red Moon,” “Magic Mirror” and “Flowers of Babylon.” While these games are in the for-sale category like Aristocrat’s core games, Marks has created an entirely new look for the E-Series games—highly stylized poker symbols, clearly different than the classic Aristocrat look; elegant artwork on all the reel symbols—which clearly sets these games apart from the core Aristocrat games.

Boosting the Core—and the Jackpots Those core games are as strong as ever, and will be well-represented at G2E. Heading the G2E highlight reel are new versions of “Wonder 4,” the multiplereel-set games that have been taking the industry by storm since their introduction last year. Wonder 4 is a multi-game, multi-reel concept. There are four reel sets, and the player can choose to play any or all of the four base games at once. A unique “Drag and Drop” technology allows the player to drag any of the game titles from the menu and drop them on any of the reel sets—you can play one Buffalo and three Pompeii games, four Fire Lights, or any other combination. The choices include standard payline-based video slots, Reel Power slots (243 ways to win) and Xtra Reel Power enhanced scatter-format games (1,024 ways to win). Aristocrat executives have dubbed Wonder 4 their “Game Changer,” and operators across the U.S. seem to be agreeing with the moniker, reporting strong performance and installing more than 1,700 units in the first year alone. Aristocrat’s G2E lineup will highlight a second batch of four popular Aristocrat base games—selected based on player feedback—in “Wonder 4 Special Edition.” The four games players picked for this edition are “Buffalo” (it’s the most popular Aristocrat core game, repeated in the second edition), “Fire Light,” “Wild Patagonia” and “Indian Dreaming.” The Special Edition will be accompanied by a second grouping picked by the players in “Wonder 4 Stars,” including “Wicked Winnings II,” “5 Dragons Deluxe,” “50 Lions” and “Timber Wolf.” The new grouping, categorized as the “Future Pack,” includes a new “phantom-style” mystery free-spin bonus that occurs more frequently than the bonus in the original Wonder 4. A third grouping, “Wonder 4 Gold,” is slated for December release. The other game series fronting the Core Games group is “Legends,” which wraps the most famous classic Aristocrat games into a choice of two versions— 42

Global Gaming Business SEPTEMBER 2013

players can choose the classic version of a popular game, exactly the way they remember it, or a “Deluxe” version with all the more modern bells and whistles. (Wilson says most players, surprisingly, have picked the “Deluxe” version.) Heading the Legends games at G2E will be “Buffalo” and “Timber Wolf,” titles which have shipped a combined 8,000 units over the past five years. The core group also will highlight Aristocrat’s stepper slots, headed by “Cashman Live” in the Viridian Hybrid cabinet. The reel-spinning version of the popular game series, which features the “Mr. Cashman” character popping onto the reels to award wild symbols, wild reels and multipliers, is represented in three new base-game titles, “I Heart Diamonds,” “King 7” and “Stacks of Gold.” The Mr. Cashman bonus feature, as with the Sherlock Holmes game, is accomplished in the stepper format through the “Shutter” technology. Finally, in the Jackpot Products segment, among the new titles on display in Olive’s first G2E back with Aristocrat are “Sparkling Jackpots” and “Jackpot Reel Power,” along with fan favorites like “Hyperlink Multilink,” “Cash Express Hyperlink” and “Millioni$er.”

System Suite The multitude of games on display at Aristocrat’s booth—there will be 204 in all—will be accompanied by exhibits of Aristocrat’s other growth area of late, the Systems division. According to Kelly Shaw, vice president of systems sales and marketing, two main areas will be highlighted at the show—networked bonusing in connection with the popular Oasis 360 casino management system; and the company’s suite of products designed to take Aristocrat games into online and mobile channels. Oasis 360’s “SpeedSolutions” bonusing portfolio contains bonus features that can be driven to players’ slots that are designed to drive loyalty and increase incremental revenue. Among the networked bonus features in the suite are “Play ‘N Win,” which awards a type of match-play functionality for bounce-back incentives. Elements like QR codes will allow those incentives to be shared between brick-and-mortar casinos and mobile devices. “This is one of the most exciting times for us in systems, because we’re extending our commitment to move beyond brick-and-mortar into the online space,” says Shaw, “to get our customers ready not only for free-play platforms but for social casinos and online casinos.” Nowhere is this more evident than in the hot “nLive” system module, which is in place at the Maryland Live! casino and is on queue for more installations. The nLive platform allows operators to create a free-play online casino in connection with their websites, to drive player-club sign-ups and ultimately drive players to their properties. “We’re lowering the cost of entry for some products by moving the platforms into the cloud,” Shaw says. In all, this year’s G2E is sizing up to be like none before it for Aristocrat. An appropriate kickoff to the company’s next 60 years.

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>>>GLOBAL GAMES 2013 | Aruze Gaming America |

Building on Innovation Aruze builds on the success of its Innovator stepper series with a new game group, while augmenting its proven video slots

ver since Aruze Gaming America was established in 2007 to re-establish its Tokyobased parent company—then called Aruze Corporation—as a major U.S. slot manufacturer, the company has been evolving. Evolution was nothing new for Aruze. The Japanese parent company started life as pachinko manufacturer Universal, which itself evolved into a major U.S. slot supplier in the 1980s. After reverting to mainly pachinko, the newly named Aruze got back into U.S. gaming first as a stakeholder in Wynn Corporation, and finally as what it is known as today, an innovative Las Vegas-based slot manufacturer. The parent company, which went back to the name Universal Entertainment in 2009, has Aruze subsidiaries in Australia, Macau, the Philippines, South Africa and Japan, and is a major slot supplier in Australasian markets. Meanwhile, Aruze Gaming Americas has continued to evolve. That evolution has come in the form of a succession of hot slot products in a wealth of different product groups, from simple, classic video slots in the G-Series group to the “Reel Feel” technology of the monster hit Paradise Fishing in the G-Link series, to the G-Station series of multi-player table games. For each of the past few years, Aruze has cultivated new product groups—first the G-Deluxe series, which adds elaborate, interactive top box bonuses to video slots; then two groups of its groundbreaking stepper series, Innovator with Radiant Reels. 44

Global Gaming Business SEPTEMBER 2013

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The format is pretty “spectacular. The innovative technology and lighting just on the fifth reel changes between free games and multipliers and random awards.

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—Paul Omohundro Director of Marketing, Aruze

The Innovator stepper series features large reels—at 18.1 inches across, which each reel strip measuring 3.54 inches, they are the largest strips for a five-reel format in the business—backed by multi-colored LED lighting and variable reel speeds, with lighting and colors varying according to game conditions. Radiant Reels spin forward and backward at various speeds. “There are 240 LEDs behind each reel,” notes Paul Omohundro, Aruze’s director of marketing, of the technology behind Innovator with Radiant Reels. “The reels have 10 different movements, as well as speeds ranging from 3 RPM to 200 RPM.” Last year, Aruze combined the elaborate top boxes of G-Deluxe with its unique steppers to create the Innovator Deluxe series, with breakout games like “Alibaba,” “Aladdin and the Lamp,” and the two games that have become the company’s top earners, “The Gold” and “Platinum.” Each game group has its own special game mechanics and unique bonus features, and each has its own appeal to players. For G2E 2013, the company is capitalizing on all those factors to inject new themes into all of its game groups, as well as introducing a completely new version of the Innovator stepper format.

The 4+1 That new Innovator series, called Innovator Multi-Action Extra Reel, employs a format called the “4+1 Reel.” It employs a four-reel base game, with a fifth mechanical reel used exclusively for bonusing. Many of those bonuses occur as random mystery events during free spins. “The format is pretty spectacular,” says Omohundro. “The innovative technology and lighting just on the fifth reel changes between free games and multipliers and random awards.” Just as in previous Innovator games, the four base Radiant Reels light up and spin at various speeds according to what’s happening in the game. But the fifth reel has a life of its own, speeding up, spinning various directions and coming alive at random times during the primary and bonus games to award multipliers, free games and credits. The inaugural game for the new Innovator series, “Golden Frontier,” is packed with special features, many of them centered on interaction between the video character on the face of the top screen—a crusty old miner—and the

bonus reel itself. The face of the game is a masterful blend of 3D graphics and the mechanical reels. Above the reels is 3D animation of mountains in the background. Look just below and you get a dimensional look inside the mine. And there, standing right next to the mine, is the miner, who dances around, talks to the player and uses tools to affect what the bonus reel is doing. For example, during free games, the miner dances to a goofy tune while the reels spin. But at any time, he may grab his pick and swing it to break through the dirt to the bonus reel, sending it spinning wildly to land on a multiplier, or extra free games. In another random action, the miner will go back and get a hose and flood the bonus reel with water—the more water, the higher the multiplier goes. Or he may do it with dynamite—he grabs dynamite, throws it on the reel and blows the multiplier all the way up to 12X. It’s all done with comical animation, and it transforms the reel-spinning game into an entertaining experience normally only found with video.

Innovator Parade Aruze’s G2E booth this year will provide a showcase of new stepper games in the other two Innovator groups, as well as the new 4+1 version. In the Innovator Deluxe series, Aruze’s game developers this year set out to reproduce the great success achieved by The Gold and Crystal. The two new Innovator Deluxe games follow the recipe of those two top games for the manufacturer. “Diamond Jackpot” and “Platinum” feature beautiful, sculpted top boxes conveying the valuable subject of their themes, featuring dual displays similar to The Gold and Crystal, with a wheel-like display of credit amounts alongside a display of free-spin numbers. SEPTEMBER 2013 www.ggbmagazine.com

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The Sinbad game ‘presents an elaborate bonus sequence based on the literary seven adventures of Sinbad the Sailor. Credits rise as reel spins to send Sinbad through a top-box game board trying to defeat the Skeleton Knight, the Snake, the Cyclops and other famous foes from the legendary story.

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Each bonus symbol in a spin triggering the jackpot awards a special credit prize, and the more bonus symbols—in this case, a diamond or platinum symbol—the higher the number of free spins. The entire effect of the top-box displays merge with the Radiant Reels to offer remarkable visuals. Aruze is launching an extensive group of new titles in the standard Innovator with Radiant Reels series. Among the standouts is “Sinbad,” which is a two-game communitystyle game that features both individual bonuses and a head-to-head competition between the two players, known as the “Versus Event.” It is the follow-up to last year’s “Rich Life,” with the competitive bonuses taking place on a 60-inch common monitor—the actions of one player affecting the results of the other. The Sinbad game presents an elaborate bonus sequence based on the literary seven adventures of Sinbad the Sailor. Credits rise as reel spins to send Sinbad through a top-box game board trying to defeat the Skeleton Knight, the Snake, the Cyclops and other famous foes from the legendary story. Getting past each obstacle awards credits and free games, or a Versus Event against the other player. All of Sinbad’s “battles” use perceived skill to create a distinct video-game feel. The new community game is accompanied by a host of stand-alone Innovator titles. There is “Howling Wolf,” with its beautiful artwork, free spins and the “Moon Prize” bonus credit circle. There is “Circus Clown,” with slightly creepy clown characters and a hilarious “Clown Race” bonus that lets you pick a clown, who competes against the others in a bounce across the screen on big rubber balls. (The other bonus is a game board on the top box, with spins on the reels advancing a clown around the board.) There is “The Great Inca,” with 3D Inca god bonus symbols that appear to jut out of the reels in one of the best examples of 3D technology you’ll find. 46

Global Gaming Business SEPTEMBER 2013

There are three different new “Cherry Chance” games, two of which bathe the entire cabinet and both LCD screens in a design that conveys the animal in the title— “Leopard Seven” or “Zebra Seven”—and the other a dazzling display called “Brilliant Seven.” And finally, there is “Mountain Lion,” the latest game to feature the “Double My Feature” side bet. A five-credit ante wager doubles the free-spin choices, in which the player chooses a free-spin/multiplier combination according to volatility.

Classic Video The wealth of Innovator games will be matched by new video slot titles in the G-Series, Aruze’s series of classic video slots with basic free-spin bonus features. Many of the games feature Aruze’s “Ultra Stack” feature, which randomly stacks groups of symbols—including wilds—for big wins. Others include a progressive feature introduced last year with “Ultra Stack Lion Jackpot”—the jackpots in a multi-progressive display rise with the bet, but even betting the minimum qualifies the player for a progressive. New titles in the Ultra Stack series include “Ultra Stack Diamond,” “Ultra Stack Diamond Jackpot,” “Ultra Stack Bison” and “Ultra Stack Panda Jackpot.” One standout G-Series game being launched at the show is “Wolf 500G.” The “500” refers to the total possible number of free games. Each free-game bonus symbol randomly awards from three to 30 free games. The symbols can cover the entire screen, which, with a bonus number of free spins, gives you 500. The player has the option of picking a credit award in a range comparable to the free-spin prize if he wants to dispense with all that spinning. Other G-series games debuting at G2E include “King Eagle,” “Ramses” and “Monkey Adventure.” In all, more than 200 games on display will make this year’s G2E the biggest show in the history of Aruze Gaming. That makes it the next big step in Aruze’s evolution.

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>>>GLOBAL GAMES 2013

| Bally Technologies |

Tidal Wave From the new Alpha Pro Wave cabinet to a mind-boggling collection of new games, Bally keeps on rolling

ou may have heard that Bally Technologies is on a roll in the systems world—setting world records with networked tournaments and virtual races, providing casinos with the ability to custom-tailor bonuses and rewards at the slots, creating a core system that feeds content to online and mobile channels as well as the gaming floor. But you may also have heard that Bally makes slot machines. And it does a pretty good job of it. As its Systems Division has been doing its thing, the Bally slot development team has been getting larger, more spread-out and more diversified. And the product innovations have been pouring forth, out of a development team with no less than 32 game studios from Las Vegas to Arizona to California, to Australia, to India, and more. And by the way, that number is 32— and counting. It’s a lot for Mike Mitchell, vice president of game development and engineering, to keep up with, but Mitchell insists he’s not done building his game design empire for Bally. “We’re constantly building on to our studio system,” Mitchell says. “Some of our newest studios are in Sydney, two in India, two new ones here in Las Vegas and a new one in Reno.” He adds that when Bally, as expected, completes its acquisition of SHFL entertainment, it will add more studios in Sydney, and even one in China. Mitchell says all of Bally’s designers have a constantly growing palette of hardware platforms on which to work, using the unrivaled Alpha 2 slot platform for both video and stepper slots. From the workhorse Pro 22/22 video and Pro Stepper cabinets to the wildly popular V32—the first in the business to use a 32-inch vertical portrait-style monitor, and still Bally’s most popular format—and the newer V22/32 and V22/42 cabinets, plus two new cabinets being launched at this year’s G2E show, Bally hardware provides a huge playground in which Bally game designers can romp. 48

Global Gaming Business SEPTEMBER 2013

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“Startin’ Somethin’” ‘reprises the format—

The most groundbreaking of the new cabinets is the Alpha Pro Wave. Like nothing seen on the slot floor before, the Pro Wave features a 40-inch monitor in a concave curve shape. It’s like someone stretched the V32 eight inches, then took the top and bent it toward himself, so it could be comfortably played like a slant-top. “It’s a slant-like product, but it can also run all of our V32 game content, so it’s a crossover cabinet,” Mitchell says. “We’re aware of nothing in the market similar to this. Its flexibility is unprecedented as it relates to all our content. The V32 is our leading product currently, but the Pro Wave will display anything that’s on the V32, or anything on the Pro 22/22. The team has found a way to knit the muiltple screens onto this one screen. It composites everything on that curved screen.” Like the V32, the Pro Wave features 1080p high-definition video. The other new cabinet is the Pro Jumbo V55, a behemoth with a 55-inch monitor and giant cabinet. “This plays on the success of reel-spinning and video jumbos already in the field,” says David Schultz, senior director of video game development. “It allows us to take all of our successful V32 content and put it in a jumbo version.” In addition to these, the V22/42 cabinet is being put to use as the format of two groundbreaking new video slots—the large 42-inch top monitor, previously used to display the dual bonus wheels of last year’s “Dual Wheel Hot Shot Progressive,” is being combined with the Pro Sound Chair in a new merger of sights and sound that promises to wrap the player in the themes. “Our hardware at Bally inspires our game designers,” says Mitchell.

Startin’ Somethin’ Speaking of inspired, there’s no better word to describe the premium games Bally is bringing to G2E this year, starting with the follow-up to last year’s “Michael Jackson King of Pop,” on the V22/32 platform. You know those movie sequels that are better than the original? It’s kind of like that. One can think of no better tribute to the late entertainer than a game theme centered on the opening song of his breakout album Thriller. Those old enough will remember when that LP, the top-selling album of all time, was first put on a turnstyle and the pounding beat of “Wanna Be Startin’ Somethin’” first came out of the speakers. “Wanna Be Startin’ Somethin,’” the slot machine, captures that same feeling as the reels spin, planting the song—one of seven singles from that epic LP— firmly in the player’s head. “Startin’ Somethin’” reprises the format—the high-definition video merged

the high-definition video merged with the booming Pro Sound Chair—that made King of Pop a runaway hit for Bally, but what it does even better than the original is to weave Jackson’s legendary music videos seamlessly into the bonus rounds.

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with the booming Pro Sound Chair—that made King of Pop a runaway hit for Bally, but what it does even better than the original is to weave Jackson’s legendary music videos seamlessly into the bonus rounds. The “Billie Jean Free Games” event is a prime example. The event features Bally’s “Locking Wild Multipliers.” Wild symbols landing during free spins lock in place for the remainder of the spins, but they also carry multipliers, the level of which are determined by MJ himself—his famous dance in the “Billie Jean” video, in which he lights squares on the sidewalk with his dance steps, merged into the game screen so he activates multipliers as he does the steps. Then there are the “Leaning Wilds,” which turn reels wild as a mystery feature during the base game. The reels are turned wild as Jackson leans into them—Jackson, that is, in white jacket and fedora, doing the legendary anti-gravity lean from the “Smooth Criminal” video. The “Don’t Stop ‘Till You Get Enough Free Games” event uses the iconic pre-Thriller video promoting the young Jackson’s 1979 Off the Wall LP in a free-spin sequence employing the popular Bally “Hot Zone” wild zone feature, in which a wild “zone” descends over the screen during spinning to land on a block of symbols, turning them wild. Other bonuses incorporate the sights and sounds of “Bad” and “The Way You Make Me Feel.” Use of the videos—and five different songs—keeps the game fresh and captures the spirit of Jackson’s music and dance, while providing the player a generous pack of bonuses. Michael Jackson, however, is not the only musical icon Bally is bringing to the slot floor this year. Bally has used the V22/32 “Digital Tower” cabinet to bring the legendary Texas blues/rock trio ZZ Top to the slot floor. “ZZ Top Live from Texas” uses the same format as the Michael Jackson slot, SEPTEMBER 2013 www.ggbmagazine.com

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>>>GLOBAL GAMES 2013

“Grease Pink Ladies” is centered around not only on the two ‘stars of the movie, but on the four other top female cast members of the popular 1978 film—Stockard Channing as Betty Rizzo, Didi Conn as Frenchy, Jaimie Donnelly as Jan and Dina Manoff as Marty Maraschino. Scenes involving them all are built into several bonus events to make the game completely different than the original game.

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but instead of iconic music videos from the 1980s, it captures the essence of the band using high-resolution video footage and audio of one of the band’s recent concerts in its home state of Texas. The energy of the live performance comes through with a lot of power—as with the Jackson slot, thanks to the combination of video and the booming sound chair. Four of the most well-know hits from the concert—“Gimme All Your Lovin,’” “La Grange,” “Legs” and “Sharp Dressed Man”—are woven into the bonus rounds. The band—Mitchell says they were great to work with, superstars or not—even visited the sound studios at Bally’s Las Vegas headquarters to record custom voiceovers for the game. All of the audio and live footage was woven together into a complete package of primary-game mystery bonus events, free spins and picking bonuses by producer Jason Stage of Bally’s Arizona studio. A rock musician himself, Stage injected a lot of his own passion for music into the endeavor, a fact that is obvious in the finished product. A third licensed game on the V22/32 format is “Titanic,” based on the blockbuster 1997 film starring Leonardo DiCaprio and Kate Winslet. The theme of the slot centers not on the Titanic disaster, but on the love story in the movie—to the backdrop of Celine Dion’s “My Heart Will Go On (Love Theme from Titanic).” Still, since the film began with the story of the discovery of the famous shipwreck, many of the reel symbols reproduce the ship’s early 20th century artifacts in a superlative package of artwork. “The symbols are very detailed,” says Mitchell, “and come directly from what was on the Titanic.” The love-story theme, he adds, very much appeals to the female demographic. As with the other new games using the immersive format, scenes and visuals from the movie are woven into the game, including a main bonus event that takes the player on a 3D journey through various parts of the ship, including the bridge and the elegant first-class ballroom areas.

New Frontiers Other new games Bally is debuting at G2E take full advantage of the company’s newest cabinet styles—namely, the V22/42 and the Alpha Pro Wave. The former makes its debut here in a form using the huge top portrait screen for bonus video clips and animation as opposed to the dual wheels of the Hot Shot games for which it was launched. One of them is the sequel to last year’s game based on the musical fillm Grease starring John Travolta and Olivia Newton-John. 50

Global Gaming Business SEPTEMBER 2013

“Grease Pink Ladies” is centered around not only on the two stars of the film, but on the four other top female cast members of the popular 1978 movie—Stockard Channing as Betty Rizzo, Didi Conn as Frenchy, Jaimie Donnelly as Jan and Dina Manoff as Marty Maraschino. Scenes involving them all are built into several bonus events to make the game completely different than the original game. Also on the big new format is “The Magic of David Copperfield,” which incorporates high-definition footage of the best illusions of the famous magician and Vegas icon into several bonus events. As for that radical new Pro Wave format, it will be the basis of 22 new games at G2E. Among the new titles is the colorful “Red Phoenix,” with a free game event that allows the player to choose the volatility by picking from free game/multiplier combinations; and “Fu Dao Le,” which incorporates an Asian theme using

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>>>GLOBAL GAMES 2013

beautiful artwork and stacked symbols that appear as game logos at first, but are then revealed as a line or wild symbol.

Repeating Success Joining the new formats on the Bally stage this year will be an impressive array of new products in all of the slot-maker’s popular formats. In the top-earning V32 format, standouts include “Jackpot Empire,” one of two new titles in the “Quick Hit Pro” series. The game employs an art-deco design that recreates the 1920s era depicted in HBO’s Boardwalk Empire, only with a generic theme. Jackpot Empire employs the latest version of the Quick Hit brand, which awards multiple progressive jackpots based on the number of “Quick Hit” symbols appearing on the reels. The new version employs “Locking Quick Hits.” Any Quick Hit symbol appearing on the third reel is locked in place, and the reels re-spin until no more Quick Hit symbols appear, increasing the likelihood of winning one of the progressives. Other V32 games employ a new game mechanic called “Reel Blast,” which is featured in 15 games to be launched at G2E, and in a total of 31 titles for the coming year. It is a mystery feature in free-game rounds, in which reels 3 and 4 become one big reel, with one symbol covering a total of 12 game spots on each of three reel sets. Other V32 highlights include “Sunset Beach,” with a “flip-a-card” jackpot feature in which the player matches two of four cards for a corresponding jackpot; “Bandita,” with the Hot Zone wild feature; “Run With The Pack,” a “1,024 Ways to Win” game; and “Playboy Down Under,” an Australianthemed version of the Bally Playboy franchise. On the Pro Curve cabinet, which features reels curved to replicate mechanical spinning reels, Bally will feature 20 new games and “an explosion of different ideas,” according to John Vallejo, senior director of game development. “We’ve found that more traditional slot games from the mechanical-reel series resonate best on this platform,” Vallejo says. “The Quick Hit progressives are doing super well on the Pro Curve—we’re taking the mechanical reel and bringing it into a new era.” This year’s Pro Curve lineup includes several classic Bally reel-spinning titles, with the celebratory animation and other video-like features the format permits. Included is a multi-game unit incoporating classic titles “Bonus Times” and “In 52

Global Gaming Business SEPTEMBER 2013

Many of the reel symbols reproduce the ship’s early 20th century artifacts in a superlative package of artwork.

The Money,” and stand-alone Quick Hit versions of “24 Karat,” “Black Velvet” and “Black & White.” The core titles included on the Pro 22/22 cabinet will total 32 new games at G2E, with 40 titles to be launched within the next year. Many games incorporate new bonus features and game mechanics. For instance, “Red Phoenix” and “Rise of Ra” feature “Radiating Wilds”—when wild symbols appear, they turn all symbols to their left and right into wild symbols. “We’ve gotten tons of positive response on this feature,” says Vallejo. “Ocean’s Glory” incoprorates “Super Symbols,” which cover four reel spots and function as stacked symbols. “Wild Blue” and “Wild Red” are the first Quick Hit-branded progressives to appear on the standard Pro 22/22 cabinet. In addition to the trademark progressive feature, both games include multiplying wild symbols. “Wild Rose” features mystery stacked multipliers. Finally, “Connect Four” replicates the plastic disc game in which differentcolored discs fall into a grid of seven rows and wins are paid when four like-colored discs fall adjacent to each other. The industry-leading Bally Systems division also will be well-represented at the show, with demonstrations of new networked bonus events for the iVIEW Display Manager and Elite Bonusing System, as well as the Bally iGame Platform, which places internet and mobile versions of Bally games on the same core system platform as games in the brick-and-mortar casinos. System and i-game innovations demonstrated at Bally’s Systems User Conference last summer will be highlighted at G2E as well. But mainly, G2E for Bally is about the games. And there will be a lot of them—280 in all. As Mitchell says, “This is what we do.”

Macquarie: Your blueprint for success in Gaming.

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These examples may not be representative of every clientâ&#x20AC;&#x2122;s experience. Past performance is not a guarantee of future performance or success. Macquarie Capital (USA) Inc. (Macquarie Capital) is a registered broker-dealer and member of FINRA and SIPC. This document does not constitute an offer to sell or a solicitation of an offer to buy any securities. This document does not constitute and should not be interpreted as either an investment recommendation or advice, including legal, tax or accounting advice. Macquarie Capital is not an authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). Obligations of Macquarie Capital do not represent deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542 (MBL). MBL does not guarantee or otherwise provide assurance in respect of the obligations of Macquarie Capital.

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>>>GLOBAL GAMES 2013 |Cadillac Jack |

Growing Stronger Cadillac Jack augments its game portfolio to capitalize on strengths and gain new customers

hen David Baazov, chairman, president and CEO of the diversified Canadian supplier Amaya Gaming Group, was looking to acquire a slot manufacturer to complete its lineup of online, mobile and land-based casino products, he searched for a growing, innovative company with the ability to serve a broad range of customers. He found that in Georgia-based Cadillac Jack, a company that had been a leader in Class II markets and in Mexico for years, but had most recently been making significant inroads into Class III markets. “Cadillac Jack is instrumental in providing Amaya the capability of extending our offering to meet landbased operators,” Baazov told GGB in January. Baazov said Cadillac Jack, which Amaya acquired late last year, was appealing to its new parent company not only because it provided the company an accelerated path to entry into U.S. markets, but because of the company’s innovative slot content, which is expected to translate seamlessly to online and mobile channels. This year, Cadillac Jack has continued to refine that content and build its product portfolio, leveraging its past successes and creating products for launch at this year’s G2E that promise to reinforce existing markets and open up new ones. “Cadillac Jack set high goals this year in regards to our product,” comments John Milliner, senior product manager for Cadillac Jack. “I am pleased to report that we are on track and are exceeding our goals. In particular, we aim to maintain our leadership position in U.S. Class II and in the Mexico market, while leveraging that success to gain floor share and entry into new Class III casino markets.” Milliner says Cadillac Jack continues to place a strong priority on research and development to round out its portfolio to serve both Class II and Class III this year, in an effort to further enhance the company’s slot products. “We have added to our game development and engineering teams with experienced industry leaders,” Milliner says. “We have an exceptional team in place with strong management who have taken our company to new levels, and you can clearly see this in the products we have slated for release.” He adds that these efforts have paid off in game performance. “We have very 54

Global Gaming Business SEPTEMBER 2013

strong performance from our new product series,” he says. “With the significant investment in R&D and game design in recent years, our latest games represent some of the highest-quality art and animation in the industry, as well as some of the most engaging, entertaining and rich bonus features anywhere.” Cadillac Jack, in fact, has been on a roll. Products introduced last year such as “Peter & Wendy,” a video slot based on the classic play Peter Pan, and “Unicorn Fortunes,” which introduced the “Streaming Stacks” game feature, have been earning big for operators. This year, Milliner says the company’s game design team will build on the company’s growing core product portfolio while introducing a new cabinet, exciting game mechanics and new product series at G2E.

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>>>GLOBAL GAMES 2013 bringing the game “toWe’re a new medium, which Stratos Sphere At this year’s G2E show, those products will be accompanied by a new cabinet. Dubbed “Stratos,” the cabinet features a 32inch vertical portrait-style monitor—housed in an imposing eight-foot structure—as well as attention-grabbing, gamecontrolled LED lighting. “It’s quite impressive to look at, and we have several products coming out that are designed around the Stratos cabinet, which we expect to do very well in the casino,” Milliner says. The inaugural game on the Stratos cabinet is “Win With 7s,” a multilevel progressive video slot that will be part of both the successful Cadillac Cash Class II widearea progressive network and the company’s Class III Multi-Level Progressive series. The classic theme includes an interactive wheel bonus centered on the large vertical top screen, as well as a mixture of free spins, wild symbols, and the opportunity to win one of five levels of progressive jackpots. The primary game also includes the popular Streaming Stacks feature. At the start of every spin, a symbol is randomly chosen to be stacked on each reel, which results in huge wins. “The artwork on this game is classic,” comments Milliner. “It is a sharplooking game, and mixed with the dynamic LEDs of the new Stratos cabinet, it really stands out.” The Win With 7s theme, which will be highlighted at G2E, will be joined by more themes in the new cabinet in the coming months. In the company’s core video-slot series, the prominent product at G2E will be “Dragon’s Lair,” which includes the type of multiple-bonus lineup that brought success to last year’s Peter & Wendy game. Dragon’s Lair is based on the famous 1980s arcade game of the same name, and is released to coincide with the original skill-based game’s 30th anniversary. “We are excited to bring this iconic game to a new medium,” Milliner says. “Dragon’s Lair is going to draw a lot of attention from fans of the original arcade 56

Global Gaming Business SEPTEMBER 2013

we’re very excited about. It’s going to draw a lot of attention from fans of the original arcade game.

”

—John Milliner Senior Product Manager, Cadillac Jack

game, and because the theme and characters are so fun, we think it will also bring a new set of players to the game.” Like other games in Cadillac Jack’s Multi-Bonus series, Dragon’s Lair offers a combination of entertainment and unique game mechanics designed to increase time-on-device. The base game employs mystery wild substitutions, mystery wild multipliers and, says Milliner, “constant on-screen action guaranteed to entertain and captivate players.” The game employs high-quality 3D graphics, integrated between the top and bottom screens, to immerse players in the game. The multiple bonus events include two free-spin events and two pick bonuses. There are four levels of progressive jackpots, each tied to its own bonus round. Don Bluth, the animator of the original Dragon’s Lair arcade game, provided new animation for the slot machine, which is combined with familiar animation from the original game. The other showcase game in Cadillac Jack’s G2E lineup is “Power XStream,” which introduces a unique 3-4-4-4-3 reel lineup. It is a scatter-pay game—there are no paylines, and wins are based on symbols occurring on adjacent reels. Those wins occur for symbol combinations both left-to-right starting with the first reel and right-to-left starting with the fifth reel. Along with the novel reel configuration, the setup results in 576 possible ways to win on every spin. The first theme in the new Power XStream series, to be launched at the trade show, is “Legend of the White Buffalo,” designed with a nicely done Native American theme. A second theme, to be released later this year, is “Fire Wolf.” The showcase games will be accompanied by new products in all game categories. “We have focused on leveraging our proven performers, while at the same time adding new and enticing math models,” Milliner says. “We are launching new product series, while at the same time beefing up our existing product portfolio by introducing new themes to some of our high-performing core series.” In all, Cadillac Jack’s new game lineup promises to continue the momentum that first made the slot manufacturer attractive to its new parent company. “With the proven product portfolio in place, and a wide variety of new games in the pipeline, Cadillac Jack is exceeding its goals,” says Milliner. “At this point we are in a very good place.”

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>>>GLOBAL GAMES 2013

| Casino Technology |

Star Power Casino Technology rides the success of its Pleneta Payner slots while planning release of a new entertainment-branded series

s Casino Technology prepares to celebrate its 15th year in business, the company is gearing up for a round of celebrations with its partners and customers. Along with the usual festivities, the occasion will see the introduction of new products in honor of the event and a major announcement concerning the Bulgaria-based manufacturer’s upcoming third branded series of games. Encouraged by the success of the company’s original licensing arrangement with international brand Penthouse, in 2012 Casino Technology followed up with a project with local Bulgarian multimedia production firm Planeta Payner. Among its activities, Planeta Payner promotes pop stars for the domestic and regional music markets. Each of the new branded games features an individual artist from the firm’s stable of over 50 performers. The series relies on the ability of the featured performer to attract fans of the “ethno-pop” music genre, complementing the traditional slot game with a touch of glamour and exclusivity. To date, the Planeta Payner series consists of four games offered in a multigame pack under the popular brand Gamopolis. The first two titles—“Bad Girl” and “Vampire Romance”—were released at the annual Balkan Entertainment and Gaming Expo in Sofia, Bulgaria, in October 2012. Two more games, “My Half” and “Trial and Error,” were released in April. Each game is based on a hit video clip that was created for the song of the same name, in this case by the singers Andrea, Galena, Emilia and Anelia, respectively. “Bad Girl” is a five-reel, 25-line video slot with an adjustable payout percentage ranging from 88.5 percent to 96.85 percent. It is assigned a volatility rating of four out of five stars and pays a top award of 1,000 credits. Reels 2-5 feature a wild symbol—Andrea’s face—and players can win free games with a 2X multiplier and stacked symbols. “Vampire Romance” starring Galena is similar to “Bad Girl” in many respects but offers players an attractive bonus game and a top award of 10,000 credits. Payout ranges from 88.3 percent to 96.25 percent. “My Half” has Emilia’s face hosting the wild symbol but has a volatility rating of three stars out of five. The game features cascading reels, 50 paylines, the possibility to win 15 free games and a payout percentage ranging from 88.5 percent to 96.3 percent. “Trial and Error” is a five-reel, 25-line video slot with payouts ranging from

88.2 percent to 96.5 percent, three-star volatility and maximum payout of 1,000 credits, featuring Anelia and her popular song of the same name. All four games are compatible with five different Casino Technology jackpot systems: Alchemic Fusion Mystery, QCM, Linked Progressive, Stand Alone Progressive and Linked Mystery. The games run on cabinets equipped with the Tough Rider hardware platform and are SAS 6.02 interoperabilityapproved. They are available in the game suite “Sin and Temptations” and in the new Gamopolis package Highway 65. Gamopolis is the root name given to most of Casino Technology’s multigame packages. As the game library expanded in recent years, and with everincreasing competition for title recognition, the company deemed it important to offer customers new titles in the pre-packaged multi-game format. Gamopolis—The City of Games—now incorporates over 200 titles. At present there are 25 different sets of games, compiled in varying themes and numbers of games. The result is a high degree of flexibility intended to meet the needs of operators and the tastes of players around the world—and the growing popularity of Gamopolis. To make the worldwide approach possible, Casino Technology elected to develop a large portion of its multi-games in a range of country-specific versions. At G2E 2013, visitors will be introduced to the new Gamopolis 23 and 24, being released under the name Gamopolis Multiskin. The operator will be able to tailor the package to meet specific market requirements or player preferences. The latest addition to the Gamopolis series is a new Gamopolis-themed linked four-level jackpot. The City of Games-themed jackpot is available as a part of the mystery-progressive, four-level Fusion system. Operator and player interest in Casino Technology’s first venture into the world of licensed brands continues to grow. The eye-catching Penthouse Slots games and cabinets have garnered their share of attention, and are gradually expanding into more market territories around the world. Prime among these markets are Latin America, the U.S. and Europe. In Peru, the Penthouse slots are finding acceptance among slot operators in an ever-growing number of locations. According to Casino Technology, the attraction is the effect the product has on visitors, given the remarkable ap-

‘To make the worldwide approach possible, Casino Technology elected to develop a large portion of its multi-games in a range of country-specific versions before seeking to have them certified. At G2E 2013, visitors will be introduced to the new Gamopolis 23 and 24, being released under the name Gamopolis Multiskin.’ 58

Global Gaming Business SEPTEMBER 2013

Combining excellence with innovation TCSJOHNHUXLEY is at the forefront of great design and industry leading gaming solutions, with a product suite that is second to none. That’s why, you will not only find the highest quality gaming equipment but a whole range of products and services that improve efficiency, reduce costs and drive increased revenues. TCSJOHNHUXLEY understand the need to remain as competitive as possible and stay focused on delivering revenue generating offers to their customers.

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To contact us, or for more information on our award winning product portfolio visit www.tcsjohnhuxley.com See us at booth

4437

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>>>GLOBAL GAMES 2013

pearance of the cabinets and the entertaining themes of the games. The Penthouse games are now being offered as a multi-game set in addition to being available as individual titles. An installation that combines the full array of games with the branded cabinets, decorative elements, stands and jackpot tables provides a multiplier effect. There are now five titles in the Penthouse branded series: “Blazing Guitars,” “Butterfly Dreaming,” “Foxy Wash,” “Umbrella Dance” and “Wild Temptations”—available in two multi-game versions with different math models, “Penthouse Slots” and “Penthouse Slots Ultima.” The games vary widely in volatility, from a low two-star rating to the highest five-star score. Payout percentages, free games and other features vary in similar fashion to the Planeta Payner series. Likewise, the games run on the new “Tough Rider” platform, which provides improved speed and performance, and work with all of the five jackpot systems. At G2E, Casino Technology will be incorporating improved bonus schemes and math concepts within the familiar game themes. The next set of themes being developed for the Penthouse Slots series, “Fruits of Desire,” “Chilli Baby” and several others, will feature completely new graphic styles, and will introduce new characters and stories.

Evolving Cabinets Casino Technology has had good success with its Sensa Plus and Tangra Touch cabinets. Because these products have been so well received, the company has decided to continue with them but provide new enhancements and upgrades based on client feedback and changing market demands. New features include OLED buttons, interactive toppers, specially designed slot stands with built-in sound, and exclusive i-chairs featuring an integrated ergonomic system and a monitor built into the seat back. For top-tier venues looking for a more exclusive slot product, Casino Technology has launched two new lines of high-end cabinets. The new Sensa Flex cabinet features a convex monitor screen that imparts a sense of rotation to the graphics reminiscent of mechanical reels. The Sensa Arch cabinet goes the other way with a huge 40-inch vertical, concave monitor and is intended primarily for the VLT and server-based gaming markets. The cabinet uses the Tough Rider platform, but is also available with the new, more powerful Tough Fighter platform. Overall, it is designed to deliver a new level of gaming experience to the player. For additional style and comfort, it comes with matching slot stand and ergonomic chair with adjustable seat settings. Several completely new cabinet lines are under development for next year. 60

Global Gaming Business SEPTEMBER 2013

Games that require no cabinet at all have also caught the attention of Casino Technology. The flourishing of online and server-based technologies has spurred the design team to take the best of classic casino products and bring to them the efficiency of remote platforms. As a result, customers are enabled to play and bet in a multi-functional environment with much more speed, diversity and interaction. By making available a huge library of games for both online and land-based platforms, through Casino Technology’s Server Games Technology solution, the gamer can play any time, any place, on different devices, using the same player wallet account. Similarly, operators can provide the player with the confidence and comfort of their own casino—online or land-based—wherever they happen to be. Casino Technology is currently developing a new product line of internet and mobile games that can be accessed with PC, smart phone, tablet and interactive gaming tables. In line with the increase of entertainment offerings in vacation complexes and resorts, there will also be a platform for interactive in-room gaming via the guest room television. The current year has seen Casino Technology making further inroads in a wide range of markets considered key by the company, from the U.S. and Latin America to Africa and Asia. Progress in Latin America has been particularly noticeable, with new partners and installations in Peru, Panama and Mexico. In Chile, Casino Technology has obtained accreditation as an approved manufacturer, which has allowed the first steps on the way to placing product in that market. Operations have also begun in Argentina, where the company is looking forward to meeting new customers at SAGSE this coming November. In Asia, the company reports it has managed to strengthen its positions in lands as disparate as the Philippines, Cambodia and Kazakhstan. For the remainder of 2013 going into 2014, the firm’s focus will be on Africa and Asia. There are new installations going into South Africa and several projects in Kenya, Ghana and Uganda, where Casino Technology’s multi-game products and electronic roulette systems are finding great acceptance. Announcements will come soon for new products designed for the Philippines and Macau. Meanwhile, back home in Europe, there is the expectation of a lot of new potential projects involving the Server Games Technology platform as those countries move to centrally monitored slot and VLT networks. As for that third licensed brand slot product, the company is not saying anything more than that it will be a “Rocking Slot” product. The announcement will coincide with the start of Casino Technology’s 15th anniversary celebrations. —By Rich Geller

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you have a choice.

visit BMM at booth #2424 September 24-26 | Las Vegas NV

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>>>GLOBAL GAMES 2013

| Inspired Gaming Group |

New Horizons Inspired Gaming moves to production of slot-machine technology as the company enters new VLT markets

nspired Gaming has long been known for its cutting-edge server-based systems and liver-than-live virtual sports games. Now, with more and more governments exploring the financial advantages of centrally monitored VLT networks, the development of solid slot games has taken on new significance. “Slots have become very important to us over the last few years,” says Inspired Gaming CEO Luke Alvarez. “Partly because the regulations changed in the U.K. in a way that allowed slot games on our SBG VLTs. And of course, we entered the Italian market, where we’re up there competing with major international slot producers. We’ve faired well there, and now as we move into new markets in South America and Asia, slot content has become very important.” Investment in game development, graphics and the math behind the games has increased significantly over the past three or four years. In addition, in 2012 the company linked up with former Atronic head Gerhard Burda to work with Inspired as a non-executive creative adviser. One result of this intensified effort is the game “Diamond Goddess,” released last spring. This is the first of Inspired Games’ new Freespins+ family of titles, and features enlarged bonus symbols, spreading wilds and the ability to lock in wilds during free spins. It also carries the company’s signature “Fortune Spins” feature. Says Alvarez, “We’ve done a big initiative with Fortune Spins games, which is a special magic feature on the slots that allows you to up your staking level for higher levels of RTP, which players have responded to extremely well both in the U.K. and with a variant in Latin America.” According to Alvarez, the game has quickly become a favorite with players in the U.K. It will be launching soon in Colombia, Mexico and Italy, and a version for online and mobile play will also be available. Diamond Goddess will be the special game promotion at Inspired’s G2E Vegas booth. Also featured at G2E will be the company’s new slot cabinet, Eclipse. Inspired is calling the Eclipse cabinet “a 360-degree product evolution.” Key features include four linear HD screens, a high-definition “parabolic” sound system, ambient lighting and an ergonomically designed footrest. The four-screen configuration is more than

just for show. The core screen features a main menu that is fully “swipeable” in the same way as a smart phone screen, where you “swipe” your finger across the screen to navigate from page to page. This comes in handy as the cabinets typically have between 30 and 50 game titles of various categories from which to choose. The thinking is that people have become familiar with the swipe technique from their smart phones or their interactive TV menus. The second screen, located above the main screen, is a 22-inch display on which are shown the various bonuses and features of the main game. Above that, the third screen shows bonus pots escalating and also displays promotions, animations and other aspects of the machine to potential players. The fourth screen is on the button panel, where there is a smart deck-style touch screen that is larger than any other touch-screen button panel in the industry. “It fuses physical buttons with the touch screen,” says Alvarez of the button panel, “so you have physical buttons imbedded on top of the touch screen. They are fully animated, physical buttons that have all the pressure features and tactile benefits of a real button, but all the interactivity and full color animation of a touch screen.” The buttons, animations and game features on this fourth screen are fully configurable. The touch screen and the physical buttons can be used to spin the wheel on a roulette game, for example, or one could set up a number of additional bonus feature interactions or animations. The high degree of interactivity also allows the Eclipse terminal to “remember” the player and suggest other games to try based on past choices— again mimicking what has become a familiar online or mobile experience. “We think it’s a pretty breakthrough cabinet,” says Alvarez. “We’ve not seen anybody introduce those kinds of fully animated, full-color screen-projected physical buttons anywhere in the world. We’ve not seen people deploy full smart phone-style swipeability on menus elsewhere. We think the combination of all these features makes Eclipse a real breakthrough cabinet and a world first.” The cabinet was scheduled to be introduced in shops of Inspired’s major U.K. customers at the end of August. More than 10,000 units were expected to be installed within five months. Eclipse will also be available internationally. Says Alvarez, “Our focus primarily is on new VLT markets, the fully networked markets where we can deploy thousands or tens of thousands of units into government-sanctioned video lottery-style environments. We are very interested in the new gaming markets that are emerging worldwide, where you tend to have thousands or tens of thousands of machines spread in small numbers across lots of smaller venues. That is our focus, and we’ll be bringing that kind of technology to those markets.”

Global Gaming Business SEPTEMBER 2013

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“

We think it’s a pretty breakthrough cabinet. We’ve not seen anybody introduce those kind of fully animated, full-color screenprojected physical buttons anywhere in the world. We’ve not seen people deploy full smart phone-style swipeability on menus elsewhere. We think the combination of all these features makes Eclipse a real breakthrough cabinet and a world first.

”

—Luke Alvarez CEO, Inspired Gaming

Growing Internationally Italy has been a huge area of growth for Inspired in the past three years, starting with the introduction of VLT legislation there in 2010. Inspired has expanded its product offering in Italy to include Comma 6a games, which is Italy’s designation for AWP-type games, and virtual sports betting for physical retail venues as well as online and mobile. Inspired is the primary supplier of virtual sports to Italy and is contracted to supply 90 percent of the market, including operators SNAI, Sisal, Eurobet, Intralot, Cogetech, Lottomatica and Gamenet. Inspired’s products will be approved and go live in the coming months, so Italy is expected to be a significant area of growth for the company. As Inspired’s exports have grown, so has recognition of its importance to the U.K. trade balance. In July, the Sunday Times newspaper reported that Inspired ranked 34th on the list of Britain’s private companies with fastest-growing overseas sales. The company is now in 33 countries and has quadrupled international sales in only two years, to an annualized £25.3 million. Inspired was acquired and refinanced by private equity firm Vitruvian Partners in 2010. In terms of new business in 2013 and anticipated in 2014, China and Latin America are key emerging markets for Inspired. The company is live in Colombia and Mexico with its SBG slot products, and the most recent games—“Jungle Bucks II” and “Viking’s Gold”—are said to be performing very well in both markets. Virtual motor racing is live in Hunan province in China, where it goes by the name Lucky Racing. Virtual football, or soccer, will soon be live in another province. Virtual sports are considered a lottery event. With a new game being run every three minutes, the product offers 24/7 entertainment and has a lot of growth potential in emerging markets. Inspired’s virtual sports products have been developed over 10 years and are live in over 20,000 venues. The games are trusted by governments and government-supported operators to be popular with players and easy to regulate. The newest addition to the virtual sports product is not a game but a turnkey solution called BetBox. The system enables operators of small retail venues, or casinos with no experience of managing sports betting, to take the full portfolio of Inspired’s virtual sports events and have them run all day long using nothing more sophisticated than a normal PC. BetBox circumvents the traditional manner of clients offering virtual sports to customers. Typically, the virtual events go out over a satellite network or an IP streaming network to a shop or to online or mobile phones or desktops. Bets on the events are taken via an EPOS terminal equipped with a bet management system, which would belong to the shop retailer. In mainland China, for example, it is the China Sports Lottery system that handles the bets. The lottery employee takes money over the counter and pays out winnings from existing cashier sys-

tems. The same goes for Inspired’s clients in the U.K. and Italy, where big established bookmakers already have elaborate systems for handling bets. But not every market has that kind of infrastructure in place. Said Alvarez, “What we’re finding is that in a lot of new markets, people may have no system at all, particularly if they are smaller retailers. With BetBox, they can run the software on a computer and use a little digital scanner, which allows them to take cash over the counter, give out betting slips to players, and then scan the slips and pay out any winnings. It’s very straightforward. You can be up and live in a couple of weeks’ time from placing an order.” The BetBox software also receives results of each virtual sporting event. Results are always generated centrally, so the regulator and the player can trust that the outcome has been determined by an approved random number generator operating from a secure location and regulated jurisdiction. The graphics—the horse race or football game or whatever event—can be generated centrally if the network allows or locally, thanks to the compression of the information. The first installation of BetBox will take place at Casino Helsinki in Finland in September. Another option the virtual sport product offers operators is the ability to brand the events with their own logos and advertising. Most of Inspired’s existing clients do just that, which gives the racetrack or stadium where the event is being staged a realistic look. Some operators have made limited forays into third-party branding, but to date, no one has landed a Coca Cola. “People have talked about it,” says Alvarez. “Obviously, you have to go out and actually sell advertising on that basis. I think that’s happened in a small way with a couple of brands in the U.K. But nobody has yet come up with any of the big consumer brands.” —By Rich Geller SEPTEMBER 2013 www.ggbmagazine.com

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>>>GLOBAL GAMES 2013 | Incredible Technologies |

Gaining Momentum Incredible Technologies proves itself by combining an amusement-game pedigree with increasing gaming expertise

ast year, Incredible Technologies arrived at G2E with a collection of games that proved the value of an amusement-game company moving into the gaming space—mainly, the ability to apply novel ideas that may break the established rules of gaming, but which are always entertaining. Over the past year, the company, based in the Chicago suburbs, has been improving its gaming pedigree. “We’ve had some success with our gaming products, and we’re learning from that and building on those successes,” says Elaine Hodgson, the company’s president and CEO. “It’s a learning process—from learning math models to the way players like to play, the kinds of groups we are going after, and the different kinds of players out there.” The company had a head start in some aspects, like the ability to create software and game content that keeps players entertained. Founded in 1985 by Hodgson, a former biochemist, and former NASA software engineer Richard Ditton, IT is the largest U.S.-based manufacturer of amusement games, and the creator of the Golden Tee Golf franchise that has had golfers in bars practicing their swings on virtual fairways for decades. The company also had a head start in engineering of hardware aspects of games. “We didn’t have to come up with those ideas from scratch; we built on what we had from our coin-op business and made it even more robust,” Hodgson says. “We also had good software talent, and art and sound talent as well. But it’s still a whole different kind of player (in casinos), and a whole different kind of game. “That’s the part we’ve had to learn, as well as the different kind of selling and marketing effort, and regulation effort, which was certainly foreign to us. Now, we’ve gotten more efficient at it.” It turns out, in fact, that IT has been a quick study in all of those areas. The company has had huge hits with games like “Crazy Money” (its biggest earner), 64

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“King of Bling” and “The Herd.” This summer, IT released its first game carrying a licensed brand, “The Munsters Family Portrait,” with a unique game mechanic called “Slide ‘n Win”—the basic game screen is a nine-reel field, and a sliding transparent frame moves back and forth across the field until landing on a five-reel portion of the screen. The company’s staff has become adept at the regulatory aspect of the industry as well. Since securing its first license in Nevada, IT has become licensed in 15 states, and including tribal markets, 72 different jurisdictions. And the list is growing every month. As its success mounted, IT quickly outgrew its original Arlington Heights, Illinois headquarters, a 40,000-square-foot facility tooled for its popular amusement games. The company recently doubled its production capacity, moving to a new 80,000-square-foot manufacturing facility in the Chicago suburb of Vernon Hills. “We now have on-site manufacturing for both our coin-op and gaming cabinets,” says Dan Schrementi, IT’s vice president of gaming marketing and new media. “We have on-site tech servicing for amusement and casino gaming, which we didn’t have before. We’ve tripled our warehouse space. This was all accomplished in preparation for our growth in gaming.” That growth is happening quickly, as IT combines in-house game design with some select third-party designers to beef up its game library, and moves toward in-house design of all cabinets. A proprietary slant-top cabinet with dual 22-inch monitors features a 75-degree angle on the main monitor. “They’re designed so you can sit back, more like you are at a computer desk and less like a traditional slant-top,” Schrementi says. “It has been a nice success. It has a smaller footprint, angled to allow us to put it in tighter circles. We’ve done quite well with it, and it’s been the stepping stone for a new upright cabinet we’re working on.” But perhaps the most important development for IT has been the creation of a new studio-based game design system. “We have four internal development studios,” Schrementi explains. “Each studio has its own programmer, artists, 3D animators and sound engineer. Each team is immersed in the product they’re developing, and each team has its own specialty.” Another team is dedicated to working with external game designers like GC2, Inc., another

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>>>GLOBAL GAMES 2013 We take what we do best— “entertainment—and add it to each game; that’s how we differentiate ourselves from the competition. —Dan Schrementi

”

VP, Gaming Marketing and New Media

Chicago-area company that has designed such hits as IGT’s “Coyote Moon,” and which was responsible for IT’s new “Munsters” game. The company’s own designers are improving by listening to the players. The new facility is equipped with a showroom that serves as a mock casino and testing lab for new games. Once a month, designers bring in 20-30 people for player testing and focus groups. “Our internal designers are talking a lot more to the operators and the players,” says Hodgson, “trying to understand the player—what kinds of games they like to play, which of our games they like to play.” All of this translates into a rapidly growing library of casino slots. The company arrives at this year’s G2E with 15 new slot titles, bringing the total to 30 active casino titles. “In the first years, we got this ship floating on five games,” says Schrementi. “So, the fact that this year, with external help, we’ll probably produce 20 titles internally is huge. It shows you our growth.” All of IT’s slots—even the licensed brands—are for sale. While Hodgson does not rule out participation games at some point in the future, for now, the company’s mantra is “Premium Content at a For-Sale Price.”

The Entertainment Factor IT’s growth has accelerated because, in addition to perfecting the art of game math, the company’s designers always inject one or two novel features into their games, drawing on their amusement expertise. “We take what we do best—entertainment—and add it to each game; that’s how we differentiate ourselves from the competition,” Schrementi says. “We now have enough internal math that we can exploit that fact with new experiences in the games.” Among the titles at this year’s G2E will be a follow-up to the second-highest earner in the current library, King of Bling. “King of Bling Iced Out” reprises what made the original popular—a unique hip-hop theme complete with dancing, blingcovered characters and a backdrop of booming music—but adds several unique new features. For instance, the characters pop out of the reels, and move in sync with the music. It’s called “Reel Beats” technology—bouncing symbols, reel speeds and win celebrations all in time with the beat of the hip-hop sounds. Bonus features include “Iced Out Mode,” which triggers re-spins when dia66

Global Gaming Business SEPTEMBER 2013

monds land on the first two reels. Every time another diamond lands to create a new line win, it triggers another re-spin. The other bonus, “Bounce 2Nite,” is a novel take on the pick-’em bonus: The player touches a tricked-out car on the screen, and it causes a hydraulic bounce to reveal credits. “It’s the same concept as a pick-’em game, but with a unique presentation,” says Schrementi. Also prominent at the show will be IT’s new foray into branded games. The Munsters Family Portrait mines the best comedy bits of the famous 1960s TV sitcom, about monsters and vampires trying to fit into suburban life, and presents them with real-time 3D graphics, along with clever bonus events like the “Mad Lab Bonus,” in which you go into “Grandpa’s dungeon laboratory” to pick one of the characters to become wild during free spins. At G2E, the Munsters game will be joined by a second branded slot, “Archie in Riverdale Riches.” The game is based on the classic Archie comic books that every baby-boomer boy had among his stacks of comics. A masterful treatment of the theme plays on favorites that will be familiar to anyone who had stacks of Archie, Betty & Veronica and Archie’s Pal Jughead comic books. For instance, there are two bonuses, one a picking event and one a free-spin bonus. The theme for the pick-’em bonus is Betty vs. Veronica, and the player picks one of the two. (What guy didn’t have a favorite between the two Riverdale cuties?) The other is Jughead’s Free Spin Bonus, in which the player wins up to 18 free games. The top screen and reels change to reflect the theme of the bonus—the Jughead event plays out on a screen filled with hamburgers and other food symbols. Other new IT games at the show reflect a diverse group of novel bonus events and game mechanics: “Rorschach Riches,” a video slot featuring stacking symbols and free spins with locking wild symbols, uses Rorschach ink blots as reel symbols. When they land in winning combinations, they turn into one of several possible pictures. “Car Nation” is a sequel to last year’s popular “Cars” game, with improved math and a unique reel set. Like its predecessor, the game incorporates “Sidewinder Reels,” which spin horizontally. The game screen forms a 3D highway scene, transforming to a new location and backdrop with every spin. Road signs in the new scenes award mystery “Street Wins” of multipliers, wild symbols and free spins. Random awards pop up such as the appearance of a scooter, which causes all scooter symbols to pay a credit amount. The “Fast Lane Progressive,” activated with a maximum bet and triggered by a street sign in one of the changing backdrops, allows the player to spin a tire for three levels of progressive award. “Leonidas King of the Spartans” uses the math model of last year’s hit “The Herd.” Instead of buffalo symbols, groups of stacked Spartans “attack” the reels for big wins. The “Free Spin Battle” features locking wild symbols, extra spins, 2X wild symbols and full wild reels. “Beautiful Storm” is another stacked-symbol game that follows the lead of “The Herd.” Each of IT’s new games has stacked wilds, wild reels, symbol stacks, “Jumbo Stacks” (“Black Rose”), “Walls of Wilds” (“Mystical Mine”) or other special features—there is something extra in the base game of each new title. “We’re at a place where we’ve had a lot of our games in one or two banks at casinos,” says Schrementi, “and they’ve earned a lot of money for a lot of operators. Our plan is to show the new games this year with different types of content, different types of features. We’re still unique and different, but we’ve also taken in a lot more of what’s doing well in the market, and we’ve studied the players. “The games for G2E are not just 15 skins of each other. They are 15 games we’ve put a lot of heart and soul into—and games that we’re excited to show the industry.”

Every Building Tells A Story®: The future of gaming is changing the stories we tell. Visit us at Global Gaming Expo Booth #2137 to see how and join us for our presentation, “Looking Ahead: Casino Design for the Future.”

www.cuningham.com MINNEAPOLIS LOS ANGELES LAS VEGAS BILOXI DENVER SAN DIEGO PHOENIX SEOUL BEIJING

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>>>GLOBAL GAMES 2013 | International Game Technology |

Touching All Bases IGT continues to roll out innovative content for games in every genre, and for every type of customer

any slot manufacturers specialize in a certain style of game, or certain type of bonus, or certain game genre. For slot market leader International Game Technology, that certain type of product is... all of them. IGT has made a lot of news in the past few years moving beyond its core game manufacturing into new distribution channels with its game content, including excellent revenue numbers from its move into social gaming with its DoubleDown social casino on Facebook, deals to take its content online in legal igaming jurisdictions around the world, and new networked bonusing features attached to the IGT Advantage casino management system. However, any notion that IGT has ignored its core slot business while branching out to new ventures simply does not have a basis in fact. And the fact is that IGT still pumps out slot machines in a variety of styles, genres, shapes and

sizes that is unrivaled in the industry. “We’re continuing to focus on building great games,” says Joe Sigrist, IGT’s vice president of product management. “We’re using a combination of licensed brands, great math models, really innovative game mechanics and hardware to do everything we can to make the best player experiences and create the greatest excitement on the floor.” Creating those player experiences on a consistent basis has meant an unwavering dedication to research and development efforts. IGT consistently spends nearly $200 million annually on R&D, which is a big reason it has remained atop the slot sector for more than two decades. An important part of that effort, says Sigrist, is player research. IGT’s “Usability Tests” periodically go to players to gauge what is working, what will work, and what players want to see in new games. “This is a very extensive program that we’ve continued to enhance over the years,” Sigrist says, “and it’s become a more and more important part of determining how we can make games even better.” The research extends over all game genres and departments. “We have by far the largest installed base of gaming operations units in the industry, so we continue to build great games for that area, in many cases using licensed brands,” Sigrist says, “and we also have the greatest floor share in for-sale games, so we continue to invest in both video reel and mechanical reel games.”

Back in Time As always, the most prominent stage for all of these games is that of the licensed brand in the MegaJackpots wide-area progressive series. “There continues to be a great emphasis on our MegaJackpots games, across existing licenses like ‘Ghostbusters’ and ‘Sex and the City,’ but also, we’re very aggressive in going after great new licenses.” One new license getting the IGT treatment this year is the blockbuster 1980s trilogy of Back to the Future films starring Michael J. Fox and Christopher Lloyd. The three installments of that film series about a teenager and his scientist friend who invents a time machine—traveling back to 1955, ahead to a very futuristic vision of 2015, and back the Old West—has always been regarded by fans as one long story. The game developers at IGT agreed, wrapping the entire trilogy into one feature-rich slot game. In a talent coup for IGT, stars Fox (“Marty”), Lloyd (“Dr. Emmitt Brown”), and Thomas F. Wilson (“Biff”) all revised their roles in voice-overs for various bonus rounds of the slot machine. Features such as mystery wilds, picking bonuses and free spins all switch among the three time-travel destinations in the films— events like the “Hoverboard Bonus,” in which the player picks ei-

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‘

The player accumulates bonus credits until three of the bridesmaids get sick, which ends the bonus. The sequence is hilarious, with the characters turning colors and assuming funny expressions if the wrong pick is made and they become sick.

’

ther Biff or Marty for a free-spin hoverboard race as depicted in the second film, occur in the “future” setting; other picking bonuses are in the 1955 setting or the Old West. Another of IGT’s major licensed brands slated for release at G2E recreates a more recent box-office smash—the hit 2011 film Bridesmaids starring Kristen Wiig and Maya Rudolph. All of the memorable comedy bits from the film are depicted in high-definition video in five different bonus rounds, perhaps the best of which is an interactive picking bonus depicting the engagement-party scene in the Brazilian restaurant that leaves all of the bridesmaids violently ill with food poisoning. The goal of the bonus is to pick food items from the restaurant’s “buffet” to give to bride Lillian (Rudolph) and the five bridesmaids, in the hopes that as few of the characters get sick as possible. The player accumulates bonus credits until three of the bridesmaids get sick, which ends the bonus. The sequence is hilarious, with the characters turning colors and assuming funny expressions if the wrong pick is made and they become sick. Another bonus in the game depicts the disastrous French-themed engagement party banquet from the film, and themed elements include the “Hold

On” song from Wilson Phillips, the group reunited in the film’s final sequence to sing at Lillian’s wedding. There are two base games—a line game and a “243 Ways to Win” scatter game— which are selectable by the player. “For fans of the movie, Bridesmaids is going to be a real winner,” says Sigrist, who adds that the game will be reprised in the future, after the expected sequel to the film is released. “It’s great to be able to get a license for a movie franchise,” Sigrist says. “Back to the Future wasn’t just one movie. Neither was Sex and the City; neither was Ghostbusters. And Bridesmaids will be coming out with a second movie. These are obviously successful hit franchises.”

Jurassic Stage As has become the norm for the past few years, several of IGT’s licensed brands will take Center Stage—the Center Stage community-style format, that is, with its 103-inch monitor (70 inches in the smaller version) that gave players blockbuster themes like “American Idol” and “The Dark Knight.” “Center Stage has been quite successful for us,” says Sigrist. “What’s great about it is we’ve been able to give operators a choice between two-seat, four-seat and five-seat configurations. It adds to the flexibility of the platform.” This year, another iconic film gets the Center Stage treatment in one of the format’s most effective uses yet. The original Jurassic Park, the popular film depicting an amusement-park habitat for cloned dinosaurs that goes horribly wrong, seems to have been made for the Center Stage format. The original 1993 film, which is considered a pioneering work in the use of digital animation, is as popular as ever, having spawned a series of sequels, video games, books, and even a re-release last spring in a 3D version that had fans SEPTEMBER 2013 www.ggbmagazine.com

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>>>GLOBAL GAMES 2013

flocking to theaters once again. IGT elected to focus on that landmark first film in the Center Stage slot, even getting actor Sam Neill to do voice-overs reprising his role as paleontologist Dr. Alan Grant. The big Center Stage screen provides a perfect format for the game’s main community-style bonus, in which players have to try to escape from the park before dinosaurs overtake their vehicle. When the bonus is triggered, the scene on the big screen is a jungle crossroad of several paths, from the perspective of inside the safety of a vehicle. Each player gets the chance to pick a path to get to the exit of the park without being noticed and attacked by dinosaurs. The entire bank then views the harrowing escape attempt, as the vehicle slams through the jungle underbrush to try to find the park exit before one of the dinosaurs heads it off or catches up with it. There is a full lineup of other bonuses and mystery events in the game, which has a dual reel set for the primary reel-spinning. During the base game, the player can collect “Bonus Tokens” for use in freespin events to add multipliers and wild symbols. Another new branded game in the Center Stage format is “Wheel of Fortune Ultra 5 Reels,” a follow-up to the hit “Triple Spin” version of the wheel game. Like the original, the bonus display consists of three spinning wheels for bonuses, but for the base game, the new version features the company’s multi-layer display (MLD) technology, with layered LCD monitors creating a 3D effect. In this case, it forms a striking image of 3D cylindrical reels. This version is packed with special bonus features, including free-spin wild symbols that carry multipliers of 2X-5X that remain wild for all remaining spins, and a “Scatter Wheels” feature. In the latter feature, three or more scattered wheel symbols cause all three bonus wheels to spin at once, with the accumulated results forming the bonus award. If one of the wheels lands on a multiplier, that is applied to the award as well. A new version of “Ghostbusters” also recevies the “Triple Spin” Center Stage treatment.

Esprit de Core All the new licensed titles will take nothing away from IGT’s Core Games division, which plans to release no less than 77 new titles at G2E. “Our main goal for Core Games this year was to continue the momentum we created in a very highly successful 2011-12,” says Ryan Griffin, director of product management for Core Games. “We regained our market share, and our No. 1 ship share, and we’ve been riding high. Our main objective was to continue that momentum by continuing to use the science—the player research into game DNA that increases the probability of successful games.” Griffin says the most recent game releases—there were 12 releases in a 22-day 70

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period in July—are designed to continue the success of the past two years. At the top of that list is “Candy Bars,” which was the No. 1 core game over the past two years. Griffin says that game’s success was mirrored last year in “Triple Red Hot Sevens.” But this year, it will be “Sweet 7s,” which wraps the Candy Bars theme together with its official sequel, “Takes the Cake,” and the similar game “Cats & Dogs,” which debuted at London’s ICE Totally Gaming last February, in a threegame setup. Players spin three sets of reels, one with each game, simultaneously, and all three of the base games contribute to a three-level progressive. “We know how players love these themes, and we know how they love chasing the progressive,” says Griffin, who says that with all three games active, one of the three progressives hits every 17 spins, on average. Griffin is even more excited about “Winners Choice,” which is IGT’s answer to the runaway hit Wonder 4 from Aristocrat. IGT was the first slot-maker to create a game with four reel sets to be played simultaneously on one screen, with its MultiPlay video slot family, but the rival manufacturer created the concept of being able to choose from four games for each reel set, mixing and matching the titles whichever way they want. With Winner’s Choice, IGT improves on that concept. “We know players love that game, so we’re going to enhance the experience,” Griffin says. First, there are six games in the Winner’s Choice menu, not four, from which to choose for four reel sets. Second, there are progressives. The two concepts are combined in a mystery bonus event that puts up all six games at once for free spins, with a double progressive jackpot. “Operators have been asking us when we’re going to do a product like this,” Griffin says. “We’re enhancing it with progressives, because we see the player trending aggressively toward progressive games.” In addition to six games, the player has the option of choosing the music from his favorite game for the backdrop during reel-spinning. One more reason this version of the concept will be better than the competition, says Griffin: “We’re bringing the IGT library to this, with player favorites like Cleopatra and Wolf Run.” Another of this year’s highlights in the Core Games category will be a new entry in IGT’s series of games will full-on skill-based bonus events, the “Reel Edge” series. These games incorporate a special cabinet with a video game-style joystick mounted in front of the player, with a skill bonus played out in 3D animation on a 32-inch LCD monitor, positioned horizontally. According to Griffin, last year’s two inaugural games in the series, “Tully’s Treasure Hunt” and “Blood Life,” are “totally smoking in the marketplace.” This year, the company brings a new version of the classic arcade game

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>>>GLOBAL GAMES 2013 Another new branded game in the Center Stage format is “Wheel of Fortune Ultra 5 Reels,” a follow-up to the hit “Triple Spin” version of the wheel game. Like the original, the bonus display consists of three spinning wheels for bonuses, but for the base game, the new version features the company’s multi-layer display (MLD) technology, with layered LCD monitors creating a 3D effect.

“Centipede” to the Reel Edge series. The base game is a “1,024 Ways to Win” video slot, and when the bonus is triggered, the player can choose free spins (an option for those who are not video game-savvy) or a skill bonus that remains absolutely true to the arcade game. The player manipulates the joystick and button to fire lasers at the centipede as it squirms through a field of mushrooms, while avoiding being hit by a scorpion or other enemy. Former arcade-dwellers will love this game, and those who are adept at the game win the highest bonus. As with other games of this style, players get better at the bonus with each try. The other genre in the Core Games category that is being enhanced this year is the classic three-reel mechanical game. IGT is bringing the “Hot Roll” feature, which has been extremely popular in multi-line video slots, to the “old-school, three-reel mechanical dollar player,” says Griffin. The Hot Roll feature presents virtual dice on a touch-screen monitor. The player swipes to roll the dice, with the total on the dice translating into bonus credits. On the original version, the dice rolls continue until the player rolls a 7, which ends the bonus. As Griffin notes, taking this concept to the traditional three-reel dollar game makes those dice totals into a very lucrative bonus award. “Additionally, we’re taking that mechanic over to the high-denomination world, where players normally have little refreshment,” he says. “Now, that dollar player can experience a mechanic that has been proven successful. Those players are not going to play that penny game; they’re not going to mess with that MLD. We’re going to take that mechanic and add volatility, multipliers, and an Extra Chance feature— when you roll a 7, you’re not out; you get one more chance.” Highlighted at the show in the Hot Roll group will be new versions of the classic reel-spinners “Double Gold,” “Super Times Pay” and “Sizzling 7s.” Griffin says the math of the base games will remain true to the originals. Other highlights in the Core Games area include “Fishing Bob,” the first clone of the early 2000s hit “Lucky Larry’s Lobstermania 2;” a new “Game King” multi-game unit focusing on entertainment-based games such as “Siberian Storm” and “Day of the Dead;” and new games using hot mechanics such as “Splitting Hares,” with the “Symbol Burst” feature that increases the number of possible symbols on a payline through rabbit symbols that “multiply.” “Our goal going into G2E is to leverage our experience by enhancing the player’s experience,” says Griffin. “The majority of players out there are seeking entertainment or looking for the good gamble, but we want to stay true to the fact that all players want to win.” 72

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Poker King It’s no secret that IGT invented the video poker genre—it’s the reason the company was founded in the late 1970s by Si Redd. IGT still practically owns the market for video poker games, with aficionados still flocking to classics like Jacks or Better, Bonus Poker, Deuces Wild and other variations. The company’s partnership with Action Games has put all those variants in multi-hand varieties from Triple Play to Hundred Play Poker. This year, the company injects the genre with a wealth of new varieties of specialty video poker, designed to interest, if not convert, video poker diehards, but more so to create new video poker players. “Video poker and IGT are almost synonymous,” says Sigrist. “It’s part of our business that we continue to invest in, and we want to make sure the traditional video poker player has new things to try if they want to, but also, we want to attract other, non-traditional video poker players to try the genre.” That goal is being pursued through a collection of more new video poker styles than IGT has ever brought to the big trade show. For the most part, these new video poker games carry pay tables and player returns identical to the traditional versions, which may or may not satisfy the purists. To make up for the extra bonus payouts, the player is generally asked to wager six credits per hand instead of the normal five. Among the highlights: “Flush Fever” gives a guaranteed win for four-to-theflush hands. Then there is “Look Ahead Poker,” which allows the player to peek at the first hole card before the draw, often altering accepted strategy; and “Super Look Ahead,” which allows the player to burn that first hole card from the draw.

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There is “Lucky Quads,” which initiates a bonus wheel spin for any natural four-of-a-kind hand. There is “Stud Choice Poker,” which allows the player to see the first two cards, then decide whether the draw will form a five-card, six-card or seven-card hand. There is “Hyper Bonus Poker,” in which a multiplier is applied to any dealt win—a random amount that can go up to 12X—and “Crazy Times Pay Poker,” which applies random multipliers to all hands over a full house in exchange for a 10-credit bet; and “Multi Streak Poker,” which applies multipliers to three-hand streaks of winning results following a winning hand; and “Ultimate Aces,” which applies a random multiplier to Aces wins. “Fast Four” returns four-of-a-kind pays for three-of-a-kind hands in which the last two cards add up to the value of the trips card. “Royal Deal” awards a bonus for the royal flush. Many of these new games are included in a new version of the Game King Poker multi-game unit— “Game King 8.3,” which taps a library of 55 poker games and 17 new keno themes. “Whether it be through different types of games, different bonus types or different hardware options, we think there’s an opportunity for us to create new video poker players,” says Sigrist.

New Networks IGT’s Systems Division will be well-represented at G2E as well, including new modules for the networked “Intelligent Bonusing” suite. Now in the market are “Team Challenge,” which allows the slot floor to be segmented into teams of like players for tournaments; and “Auction Action,” which allows players to use their points to “bid” on player rewards. New bonus games for the system, which works in conjunction with the IGT Advantage casino management system, include “Random Riches” and “Point Pursuit,” in which players receive bonus awards through games triggered by reaching point thresholds. “Intelligent bonuses are ‘intelligent’ in how we engage players,” says Andy Fisher, product manager in IGT’s Systems Division. “Operators can present bonuses in a personalized manner—for example, the player’s Zodiac sign. The system takes standard bonusing offerings and builds intelligence into them.” The Systems division also will display the latest enhancements to the sbX family of server-based gaming systems, including the newest cloud-based

applications that minimize the cost of entry. Additionally, IGT’s multi-channel content efforts will be highlighted, from its DoubleDown social casino to partnerships to take the company’s game library to online and mobile channels. Even with all these new distribution channels, though, the one thing the company will drive home at this year’s trade show comes down to a basic fact: When it comes to game variety, IGT is still the Game King.

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>>>GLOBAL GAMES 2013 | Konami Gaming |

New Goliath New cabinets, mechanical bonus displays and high-earning games are the norm as Konami spreads its wings

s you no doubt have gathered from our cover feature, Konami Gaming is flying high. The past few years have seen the slot-maker separate from the increasingly competitive pack to the point that it is now recognized as one of a handful of elite manufacturers in the industry. While it was five years ago that Konami COO Steve Sutherland made a pledge that the company would reach the “podium,” an Olympics reference to the top three spots in the slot market, it was seven years ago that the surge really began for Konami. The end of 2006 was when the company first released K2V, the video format that was to begin a momentum that has yet to subside. Less than a year after that, Konami acquired the empty lot next to its already-large Las Vegas headquarters. This year, the company announced that it will use that space to double its production capacity to handle the increased demand. Since the release of K2V, every year has seen a new platform, technology or game style from Konami. There was the company’s first stepper series, the unique Advantage series, first in a five-reel format that looked like no other fivereel stepper in the market, then in a three-reel version. There were new cabinet styles like Advantage Revolution, a hybrid product with a three-sided, revolving bonus apparatus. There were new formats like the novel reel configuration of KonXion. There was a parade of new bonus mechanics to spice up all genres. Meanwhile, as K2V evolved into KP3, Konami’s core video product kept improving. The games coming out of that improved platform are this year joining with even more new formats, new cabinets and new ways to play. The development of those new technologies—and the company’s marketing of its next generation of products—are being helped along by new talent brought in over the past year. Last November, the company hired Matt Reback, a longtime operations and marketing executive for Station Casinos and the former Harrah’s Entertainment, as senior director of marketing. Early this year, Konami hired Steve Walther, the former marketing VP for Aruze Gaming, as director of product management. The first G2E show for the two as Konami executives brings the industry more product than the company has ever brought to the big show. “You’re going to see a lot of new product in the Konami booth this year,” says Walther, “a lot more product than we had last year. Diversity is the word, and we are going big this year.”

Bigger is Better “Big” is certainly the word to describe some of the new cabinet styles and new game formats Konami is bringing to G2E. The “Podium Goliath,” launched last spring, 74

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is a super-sized version of Konami’s standard cabinet, standing nearly eight feet tall with dual 32-inch, horizontally positioned LCD displays, 360-degree attract lighting, an ergonomic button panel, and an enhanced sound system. According to Reback, operators have placed Goliath games—the cabinet supports all K2V and KP3 titles—in pods of three, and all have been earning big. “They are performing like much more than a novelty item (as giant slots are normally treated),” he says. “They are performing like a premium bank product.” Konami is using the format to launch a new type of wheel game at G2E. Called “Gigantic Wheel of Winning,” it is a two-level stand-alone progressive product compatible with most KP3 video titles. The progressive bonus is randomly triggered during the base game to activate a giant wheel that looks like no other wheel before it. The wheel covers both of the giant monitors, and is depicted from the side, with the player viewing the edge. It is a 3D image, with numbers popping out from the screen as its spins. The wheel contains two stand-alone progressive jackpots and several credit prizes. There is a “double or nothing” option on the wheel prize, which the operator can configure to limit

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You’re going to see a lot of new “product in the Konami booth this year,

the doubles. According to Walther, the bonus display is configured as a “true wheel,” meaning there is an equal chance of landing on any of the spaces, including the progressives. “The Gigantic Wheel of Winning is designed to take advantage of the size of the Goliath cabinet,” Walther explains. “The progressive will sit on top of any standard game.” At G2E, the Goliath will be joined by the new “Podium Monument,” which sports a very different, vertical look—a standard 22-inch game screen, topped by a vertical 32-inch portrait-style monitor. An LED border around the top monitor changes colors for a display that will

a lot more product than we had last year. Diversity is the word, and we are going big this year.

”

—Steve Walther, Director of Product Management draw attention from across the room. There will be three launch products for Podium Monument displayed at G2E. “Quick Strike Quad” is a four-level stand-alone mystery progressive compatible with any video title that does not require a top-box display. Progressive awards are randomly triggered during base-game play. It is a “Must Hit By” progressive game, which means that the player is on notice of the level at which each progressive must hit—the jackpot trigger range is listed under each incrementing prize on the jackpot display. The LED border on the cabinet helps the anticipation build up as the musthit jackpot level approaches. “As it gets closer to the trigger, the display starts to ‘heat up,’” says Walther. “The colors change as the chances of the progressive hitting go up.” Quick Strike Quad will be accompanied by two new game families designed specifically for the Monument format. “Snow Stars” is a family of games launch-

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“Ultra Reels,” a follow-up to the KonXion scatter format, uses a 3-4-4-4-3 reel layout (three spots on the two outer reels and four spots on the rest) in a left-toright scatter-pay setup. Launch titles include “Spellbound Princess” and “Warrior’s Gate.” “Genie’s Power” is a new seven-level linked progressive product, with four individual bonus games that can be triggered randomly. The bonus games—“Wheel Castle,” “Treasure Cave,” “Fortune Oasis” and “Lucky Town”—each have different bonus mechanics, and each can trigger one of the seven progressive jackpots. “Exotic Princess” is an 11-reel game. The first two columns are independent reels, and the nine spots forming the remaining columns are each individual reels, with all possible symbols available on each spot.

Tournaments on Demand In addition to the wealth of new slot games, Konami will display new additions to its “Synkros” casino management system. The popular system, which is the next generation of the widely used Konami Casino Management System (KCMS), now includes a networked tournament product known as “True-Time Tournaments.” “It is a networked product that leverages the power of the Synkros system,” Walther explains. “A feature called True-Time Windowing takes over the entire game screen once the player decides to play his tournament entries.” One phrase in that sentence represents what makes the new tournament module unique—“once the player decides.” True-Time Tournaments is an on-demand tournament system. Players earn entries to a tournament based on whatever parameters are set up by the casino. The player can decide at any time during an

event period to play his tournament session based on the entries earned, which instantly transforms the game screen for tournament play. “This is where our tournament system differs from the competition,” Walther says. “It gives the player the opportunity to decide when to play.” Adds Reback, “The other nice thing is, as an operator, tournament entries are free to give away. Your costs are your fixed costs for whatever your prize pool is. With Player On Demand, I can set up whatever incentive I want in the Synkros system so I can give out an infinite number of tournament entries. As long as you are reaching the thresholds I set as an operator, I’m not limited by how long my tournament area is roped off or how many positions I have. “I can set up whatever behavior incentives I want, and I don’t have to worry about the math of how many turns per hour I can get in. It allows me to really turn my incentives, limited only by how creative I can get. As an operator, I always wanted incentives that were zero cost but high value, and that’s what this gives you. When I show this to operators, that’s the first comment they make.” Of course, the functionality is in the system to do the normal “3-2-1-start” type of collective tournament, since many casinos do prefer to promote specific events at specific times. But with the Synkros system, the flexibility is built in for the operator to choose how to run the contests. True-Time Tournaments are just one more piece of the puzzle Konami has been assembling for the past six years, and the completed puzzle forms the picture of one of the top slot suppliers in the industry. Sutherland’s “podium” is certainly right around the corner.

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>>>GLOBAL GAMES 2013 | Multimedia Games |

Texas Flood Multimedia Games capitalizes on the success of its High Rise series and other games with a collection of entertaining new titles

as Vegas may be the entertainment capital of the world, but Austin is the entertainment capital of Texas. From the blues bars lining Sixth Street to the national entertainment stage of Austin City Limits, the place is brimming with talent. That talent is not limited to the blues. Austin is also a hotbed of engineering talent, home, as it is, to the University of Texas. This marriage of entertainment and engineering explains how an Austinbased slot manufacturer, Multimedia Games, has been able to grow into a worldclass supplier, when few outside of Class II bingo strongholds like Oklahoma even knew of the company scarcely half a decade ago. Company President and CEO Patrick Ramsey says he feels the Austin vibe has been an important factor in keeping those talented engineers focused on creating unique games—without being surrounded by a cluster of competition like the big Las Vegas suppliers. “Game development has grown by around 50 percent just over the past couple of years, and think it’s important that we keep the energy here in Austin,” Ramsey says. “We’ve added several studios over the past couple of years, and we’re in the process of adding several more. We have 50-60 releases a year now, hitting a lot of different markets. Our team is putting out a well-rounded product portfolio.” “We’re building a brand,” adds Brad Johnson, vice president of marketing and product management. “Our games have a look and a feel that we’ve been developing over the past four years. A lot of value is placed on making sure that quality is at a certain level, and that’s key to our success. People know that when we put out a game, it’s a quality game.” All those games are earning big for operators, and being noticed by players. Clint Owen, Multimedia’s vice president and executive producer, tells the story of a Minnesota cab driver telling him what fun he had playing a Multimedia slot machine, “Carnival in Rio,” without knowing Owen actually worked for the company. “Our games are attracting many different segments of customers,” says Ramsey. “We’re now in just about every major U.S. jurisdiction; you’ll see Multimedia Games product everywhere. That’s taken a lot of hard work by a lot of people over the past five years. And the good thing is that we’re now building a portfolio that attracts every type of gamer.” 78

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Building on Success That portfolio of games keeps getting larger, a fact that will be obvious from the 100-plus games displayed at the company’s G2E booth, with more than 50 new titles. According to Johnson, part of the focus in game development this year was to build on what has been successful for the company. The High Rise series of tall premium games will see new entries this year and next year, and a new premium cabinet also will be released in 2014. However, standard forsale games have received particular attention this year, he says. “We keep raising the bar on the quality of our video games,” Johnson says, “and we’re adding stand-alone progressives to our standard mechanical reel games.” If there is one common thread in Multimedia’s standard for-sale games, it is entertainment. For many of the new G2E games, this means comedy. Take “Yardbirds,” a nine-reel (each reel spot is actually a complete reel with all outcomes available), 50line video slot. The main feature is the “Chicken & Egg Bonus,” in which the player picks eggs from a field to try to hatch chickens for credit awards. Every time a chicken isn’t found, a fox appears and steals one of the eggs, but when a chicken is revealed, the hen lays nine more eggs to continue the bonus. This alone is entertaining, but what really makes it

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The one video slot with arguably the best entertainmentstyle bonus of the bunch is “Zombie Outbreak,” with a “first-person shooter”-style bonus event that stands up to any home video game out there.

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work is the cartoon animation and goofy music reminiscent of “Turkey in the Straw”—you may be looking for credit awards, but you’re laughing while you do it. Even Multimedia’s trademark “Lucky Dust,” which sends little stars or fairy dust flying when you touch the screen in other games, sends a bunch of drumsticks flying in this one. Goofy farm music also makes you laugh in “Green Thumb,” another nine-reel, 50-line game, with a main “Watering Can Bonus.” When a watering can appears on the middle reel, the small-plant and medium-plant symbols get watered and grow into the highest-paying large plants, and the middle reel grows to be covered by the large plant. If the Venus Fly Trap symbol appears on the middle reel, it eats all the insect symbols on the reels, bumping up the credit amount with each bug eaten. In the “Growing Green” event, the player picks spots on a plant to uncover additional symbols for multipliers or additional picks. They’re all fairly standard bonus mechanics, but it is the comical presentation that makes them stand out here—they are funny cartoons that pay. There is much more humor in the Multimedia video lineup. There’s the 50line “Wild 80s,” with its Valley Girl voice hosting the “Boom Box Bonus” picking game and cards flipping across the screen to turn symbols wild. There is “Femme Fatales,” another 50-liner featuring female heroes in Western, Mystery, Sci-Fi or Jungle settings for picking bonuses. There’s “Arriba,” with the flying Mexican wrestler character “Beto,” a frog mariachi band, and the irresistible “Jumping Bean Bonus” picking event. But the one video slot with arguably the best entertainment-style bonus of the bunch is “Zombie Outbreak,” with a “first-person shooter”-style bonus event that stands up to any home video game out there. Most of the main features are clever enough—a “Free Spin Outbreak” in which the reels are “infected,” turning any human symbols into wild zombie symbols; reels in the primary game turning green for an “Infected Spin,” again turning the humans into wild zombies—but the main feature, the “Zombie Escape Bonus,” is the one that has had players abuzz in game tests. The idea here is that waves of zombies are advancing toward you, the player, and you have to kill them before they overtake you and eat you—ending the bonus. There is a field of hidden weapons from which to choose as the zombies advance, and credits are awarded for each zombie killed. But there are a lot of them, so picking the right weapon is essential: There is a pistol, which will take out one of them. The shotgun will take out two or three; the machine gun will take out a bunch of them; and the ultimate, the 80

Global Gaming Business SEPTEMBER 2013

flamethrower, will wipe them all out. Then they’re replaced by a new wave of zombies—11 waves in all, so odds are you’re going to get eaten, unless you’re lucky enough to pick the flamethrower every time. “We tested this in Washington, and the numbers have been awesome,” says Johnson of Zombie Outbreak. “It will be interesting to see how it takes on a life of its own as it moves across the country.” Adds Ramsey, “I was in Washington, and I saw people circling around the Zombie game. I wasn’t sure how people would enjoy using a flamethrower to burn out zombies, but they were all over it, and talking about it, and watching each other in the bonus rounds.” It’s not the first time a Multimedia slot has mimicked a video game. Last year’s “Triple Cheeseburger Deluxe” had players building their cheeseburgers one ingredient at a time in the “Build-A-Burger Bonus,” which, as anyone who played arcade games in the ’80s will recognize, is a lot like the famous video game “Burger Time.” This year, the company is launching a follow-up to that game called “Triple Sundae Deluxe,” which is also an app for iPhones and tablets. Other standouts among Multimedia’s standard video collection: • “Carnival in Rio 2” reprises Multimedia’s highest-earning theme in a 100line version with a dual “Must Hit Progressive” jackpot. The top-screen progressive display plainly states the level at which the progressive must hit, which leads to anticipation, excitement and a high level of coin-in. “Wild Alaska” is the other new game with this progressive feature. • “Fuji” is a new game featuring Multimedia’s “Straight Shot Multiplier” feature, which automatically applies a multiplier to any wins on “straight,” or horizontal, paylines.

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• “Vortex” is a 50-line game with a lucrative “Scattered Vortex Bonus” free-spin round. Pays are multiplied by 10X during 10 free spins, and during those spins, wild symbols appear in “stacks” of up to four. • “Brilliant Jewels” is a 50-line game featuring Multimedia’s newest game-play feature, “All-Match Pays.” Pays are increased if reel symbols in winning combinations are the same color, jewel type or mix of symbols. When players match all jewels, the payoff is 100 times the total bet. • “Dragons Wild” features stacked wild symbols in a game-play similar to Carnival in Rio, with beautiful artwork as dragons expand to fill entire reels. There are five times as many wild symbols in the free-spin round as in the base game. • “Beerfest” has a hilarious German theme, with a picking bonus in which the player selects items for a “banquet” to the backdrop of funny Bavarian music. • “Bunch ‘O Luck” and “Seven Seas” each feature the popular dice “Side Action” game, active alongside the reel set for periodic bonus games. Multimedia is launching several games in its mechanical reel-spinning series as well. Among the top games are “Patriot” and “Double Cash Money.” Both are three-reel, five-line mechanical reel games with wild symbols that double and quadruple the pay in winning combinations. Each features a three-level progressive jackpot.

Rising High Multimedia also arrives at G2E with a new lineup of games for its hot “High Rise” series. Heading up the games featuring the tall top box is “Moby Dick,” telling the tale of Ahab and the whale with dual videos screens and graphics of a ship sailing across the top box. For free spins, the whale swims down from the top box to turn reels wild, and in a particularly dramatic effect, the water in the sea turns red in the top box and behind the reels. “This game is a work of art,” says Johnson. 82

Other High Rise highlights include “Crystal Jackpots Orient Express,” which features a “Destination Bonus” in which players pick from an array of luggage revealing travel stamps for various worldwide travel destinations, or a “Bump It Up” stamp that increases all prize values. A free-spin bonus uses a special set of reels, with gems corresponding to a tier of progressive jackpots. Another prominent new game in the High Rise series is “Thundering Herd.” It features a huge, 40-inch portrait monitor and Multimedia’s new sound chair. In the bonus round, the player feels the thunder of the buffalo herd. An “Expand the Reels” feature doubles the game from a 50-line screen to 100 paylines.

The TournEvent Multimedia this year will also showcase its hit TournEvent instant tournament system, not only with new features on display in the booth, but with the finals of the first “National TournEvent of Champions,” a contest that has been going on all year with satellite events at 75 casinos nationwide. The casinos’ satellite events have resulted in 85 finalists, who will participate in tournament final sessions held in the arena at Lagasse’s sports bar at the Venetian on Wednesday, September 25. Total prizes are $250,000, with the winner taking home $100,000. The event is the culmination of a three-year process in which the TournEvent system, which has been among Multimedia’s top products, has been used for year-long tournament events with satellite contests at individual casinos fol-

Global Gaming Business SEPTEMBER 2013

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lowed by a big final event hosted by the slot-maker. The first two TournEvent of Champions events were in the states of California and Washington. This year marks the first national contest. The TournEvent system links a bank of tournament-specific Multimedia games for a contest with special features like an overhead leader-board, a built-in host, and streaming video of the leaders. Special features have been added each year since the system’s introduction. There are two “PopN-Win” side games, in which balloons or other objects float up player screens at random—touch the screen to pop the balloon, and boost your score. A “Jump to First” feature can boost a player’s score to

first-place at any time during the contest. This year, aside from the national event, TournEvent will debut more new developments. The company will be offering casinos a “Holiday Package” of five tournament games, each themed to a holiday during the year. The casino can theme its tournaments to different times of year with different games. Also, according to Johnson, after G2E, Multimedia will launch an effort to link TournEvent across multiple casinos, allowing players to accumulate scores in “Slot Leagues.” Big casino corporations will be able to form leagues across all their properties. Next year, the company also will introduce a “Second Chance” feature for the TournEvent of Champions that will allow players to go online with mobile devices to play for entry into the finals. “TournEvent certainly has taken on a life we couldn’t have predicted,” says Ramsey. “We’re approaching 200 casinos that are equipped with TournEvent, which is absolutely staggering. I remember it being in two or three casinos. There has been a lot of energy and excitement surrounding this product, and to have the National TournEvent of Champions to support that, and to teach our customers how to drive that excitement, is pretty awesome.” It’s the kind of excitement that seems to be surrounding all of Multimedia’s slot products these days—an excitement that’s as big as Texas.

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| Novomatic/Austrian Gaming Industries |

Expanding Innovation Novomatic Group’s Austrian Gaming Industries subsidiary continues its push into the Americas with products that have dominated European gaming

f anyone doubted the fact that Austria’s Novomatic Group of Companies, led by its slot manufacturing subsidiary Austrian Gaming Industries (AGI), is the dominant supplier in the European gaming market, a visit to its stand at last February’s ICE Totally Gaming show in London surely erased any doubt. Novomatic’s stand was larger than many casinos. Subdivided into displays of the company’s scores of subsidiaries, the stand measured more than 30,000 square feet, the largest booth in the history of trade shows. Novomatic dominated the show. No one would argue that Novomatic has conquered Europe in terms of gaming. In addition to being by far the largest slot supplier on the content, the company is a major casino operator—Novomatic Holdings and its Swiss sister company Admiral Casinos & Entertainment (ACE) operate more than 1,200 casi-

Global Gaming Business SEPTEMBER 2013

nos, electronic casinos, and sports betting outlets. For Novomatic, though, the past few years have not been about dominating Europe—they have been about branching out, to new markets in Asia and, in particular, the Americas. New markets in the Americas were an important enough opportunity that Jens Halle, the longtime managing director of ATI, relocated to the U.S. and established a new subsidiary, Novomatic Americas Sales LLC, to service new markets in North and South America. Halle says it was a matter of reversing his international commute—he was spending so much time in the Americas that it was easier to commute back to the company’s corporate headquarters in Austria when needed, and spend a majority of his time making sure the drive to establish market share in the Americas was going right. “As you know, Novomatic now has many subsidiaries throughout South America,” Halle says. “To better and more efficiently support and coordinate the efforts of those companies, we last year established a presence in the U.S., in Fort Lauderdale, Florida, to create a ‘hub’ for our business throughout all of the Americas. “That has been a tremendous success, as it allows better and more efficient logistics when those companies communicate with Novomatic Group headquarters in Austria. We set the hub up to give an added value to our customers across Central and South America, and we can see that the results have been extremely positive.” To more effectively branch out into U.S. markets, Novomatic enlisted a partner in Ft. Lauderdale, Reel Games, Inc. Reel Games, a 12-year-old manufacturer and distributor of slots to several U.S. states, the Caribbean and cruise lines, imports Novomatic products and assembles them for sales to 60 U.S. jurisdictions in which it is licensed. “We started our move into North American markets with one huge advantage: the reputation for excellence and quality that Novomatic enjoys worldwide,” Halle says. “We moved, as Novomatic always does, cautiously and in a logical, step-by-step manner, but we have been extremely gratified by the reception that we have had thus far from American operators. “The necessary licensing and approvals procedures will take time, of course, but we are well on track to achieve our initial objectives and thus be able to move forward with confidence.” It is the repeat of a common practice in Novomatic’s history when entering a new market—choose the most efficient means possible to get Novomatic games in front of players.

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“The Novomatic approach is to undertake market research and to use the most efficient logistical route to market,” Halle explains. “As is widely known, our preference is to have subsidiary companies in place when we enter new markets but, for various reasons, that is not always either practical or possible. So, wherever we are in the world, Novomatic will move to ensure the standards of service and support that our customers have every right to expect.” Reel Games has had sales success with a number of Novomatic product groups. It groups Novomatic’s Premium-V+ Gaminator slot group in four different product mixes to cover a wide range of preferences. “Wild Nights,” a mystery progressive jackpot available for the Novo Line VLT/GDS and Coolfire II cabinets, has been a success for the company as well. Of course, taking products to the Global Gaming Expo is a particularly efficient way of spreading the word about Novomatic in American markets, and the company plans to take advantage of that fact with gems from each of its diverse product groups.

The Dominator At the heart of G2E display will be AGI’s latest cabinet, “The Dominator.” The show will provide the U.S. premier of the cabinet, which incorporates five video screens in-

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cluding a touch-pad button panel, a topper and three main screens. The cabinet will be accompanied by a wide range of single games and multi-game mixes based on the server-based-ready Novo Line Interactive platform, as well as a selection of single-player games from subsidiary Octavian. The machines will be connected to the “Amazeland” community jackpot, as well as the mystery progressive “Magic Joker Jackpot.” The Super-V+ Gaminator and Premium V+ Gaminator platforms will be well-represented with U.S. market-specific multi-game mixes, together with Novomatic’s “Reel Tournament” controller. Other Novomatic progressive jackpot systems include the dinosaur-themed “Ancient Giants”—housing the games “Ancient Wilds” and “Ancient Treasures”—the “Marilyn” series featuring Marilyn Monroe, and a new “Elvis” mystery progressive jackpot. Other cabinet styles to be displayed include the Novostar SL slant-top and the Super-V Gaminator III, with more multi-game lineups designed for American markets, and single games based on the Coolfire II platform. Among Novomatic’s other new products launched last February include a new range of signage called “Absolute Vision,” in which operators can distribute content to a variety of video screens simultaneously. “Novomatic continues to inspire through innovation,” says Halle. “To make that innovation possible, we have arguably the best R&D teams in today’s global gaming industry. “It has always been a key element of Novomatic’s business philosophy to invest heavily—far more than the industry standard—in R&D, and that sits perfectly alongside Novomatic’s position of business duality, as both a manufacturer and a highly successful operator. The knowledge gained from our operations is a key driver in our product development.”

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>>>GLOBAL GAMES 2013 | Spielo International |

Spreading the Word Spielo takes to the road to spread the word on its diverse range of slot products

f you are a casino slot executive in the U.S. Southwest or Midwest, you may have seen a strange vehicle pull up to your portecochere—a truck hauling an elaborately decorated orange-and-blue trailer, bedecked with the logos and product names of a popular slot brand under the slogan “Innovation Travels.” It’s the “mobile showroom” of slot manufacturer Spielo International, a customized trailer with 13 cabinets on board forming a microcosm of the variety of games Spielo has to offer. Sales staff departed from Las Vegas in the vehicle on April 15, and as of press time, had visited customers in eight states. “Our goal is to see every single one of our customers across the U.S.,” says Claudia Baskerville, Spielo’s marketing manager for North American casinos, “and it’s been highly successful.” “At G2E, as an operator, you’re visiting 13 people, walking 20 booths, stopping at each for maybe 30 minutes,” adds Mike Brennan, Spielo’s product marketing manager. “This gives us a chance to give them hours on end—quality time with the customers. The customers get the attention they need, and they get to see our whole portfolio in a hands-on experience.” The Spielo road show, as it’s called—the trailer contains representative games from each Spielo product line—will continue after G2E, but Brennan says the effort, organized by Baskerville, is a great supplement to the big trade show, which gives operators a chance to view the entire product lines represented in the mobile showroom. It’s one more way Spielo is connecting with customers as the effort continues to integrate the company’s brand into the corporate structure of GTECH S.p.A., the gaming conglomerate that has absorbed the assets of former companies including slot-makers Spielo and Atronic, and Italian lottery operator/supplier Lottomatica. The parent company, based in Italy, changed its corporate name in June from Lottomatica to GTECH, the name of the Rhode Island-based lottery giant that was the most well-known of the predecessor companies worldwide. For Spielo—which, according to Brennan, underwent a very successful brand change from Atronic to the identity of its Canadian sister company—a second brand change is in the offing as GTECH consolidates its numerous companies and their gaming specialties under one single, unified name. As a result, the company is introducing its new GTECH brand at G2E 2013. For now, though, Spielo is fully engaged in getting the word out about the 86

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products it offers. Brennan says the financial strength of the GTECH corporate umbrella allows the freedom to grow market share through efforts like the road show, and through the collection of products for G2E 2013, which the company is touting the strongest showing of its product ever at the big trade show. “We’ve integrated into GTECH, so we have aligned all our geographies to leverage our strength, size and infrastructure to lotteries, casino and the rest of our markets, as GTECH,” Brennan says. “This allows us to look at growing our market share responsibly like we’ve been doing—bank by bank, product line by product line. “Our expectation is to increase our stature in the North American casino markets. We’re doing that by differentiating our products, and striving to be innovative, because it’s very crowded out there. It seems the shelflife for many games has been decreasing with the increasing competition, so when we develop a product—especially a premium product—we want to ensure that it will last as long as possible, and that it’s got enough elements to stand out on the casino floor.”

Sphinx Maximus Spielo will have standouts displayed at G2E in all of its game categories, but the product expected to lead the charge is a new version of a brand that has been with the company since the early days of predecessor Atronic Group in Austria—Sphinx. Back in the 1990s, the original Sphinx game pioneered the use of 3D animation in slot machines, with a bonus journey through the inside of the

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>>>GLOBAL GAMES 2013

Egyptian landmark. The new version, called “Sphinx 3D,” completes that original vision with 3D technology that is exactly what Brennan calls it: “some of the best glassesfree 3D anywhere.” Sphinx 3D also constitutes the launch of Spielo’s next-generation cabinet, but the hallmark of the game is what’s inside that cabinet—beautiful artwork depicting the areas surrounding the Sphinx, and the interior of the Sphinx itself. The 3D effect enables the player to go on a journey toward, and then inside, the Sphinx. Even the primary-game reel-spinning is in 3D, with the Sphinx and other symbols popping out at the player with an authenticity that invites them to be grabbed out of the air. Mystery wilds are accomplished by a box that flies out of the screen and then back to the reels to change symbols to wild. Even the “Easter eggs”—butterflies that fly out when the screen is touched—are in 3D. There are five total bonus rounds—only one with the minimum wager; the others are unlocked as the wager goes up, with all five available at max-bet. It is one of several incentives to bet up that are built into the game. The bonus rounds are masterful. The player is lost in a journey through an Egyptian town, or market, or neighborhood scene, to arrive at the Sphinx and go inside. In a nod to the original Sphinx, there are several bonus levels, with picks along the way that increase credits and unlock new chambers within the Sphinx. The 3D effect never wavers throughout a long bonus round. (The bonus frequency is relatively low, enabling a longer bonus “journey.”) The effect doesn’t waver even if viewed from different angles. The other showcase products for Spielo this year include a new version of the “Deal Or No Deal” series and a community-style version of the hit PopCap game “Bejeweled.” The franchise of games based on the Deal Or No Deal game show has been a staple of the Spielo G2E lineup for years, the first based on the European version of the show, but more recent versions replicating the U.S. brand of the show, hosted by Howie Mandell—who has participated with video and voice-overs in the games. Every version of “Deal Or No Deal” replicates the central contestant round of the game show. A collection of briefcases is displayed; a list of cash prizes is shown. The prizes go into anonymous briefcases. The player selects a briefcase. Then, the player selects briefcases to open, revealing the prizes, and tries to gauge the chances among the prize amounts that are left. The “Banker” makes an offer based on the average of what’s left in the hidden briefcases. The player selects “Deal” to accept the offer or “No Deal” to decline and open more briefcases. The process repeats itself until the player accepts a deal or there is only one brief88

Global Gaming Business SEPTEMBER 2013

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Sphinx 3D also constitutes the launch of Spielo’s nextgeneration cabinet, but the hallmark of the game is what’s inside that cabinet—beautiful artwork depicting the areas surrounding the Sphinx, and the interior of the Sphinx itself. The 3D effect enables the player to go on a journey toward, and then inside, the Sphinx.

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case left. The offers get smaller or larger according to the value of the remaining prizes. The gambling nature of this process has made the “Deal” games among the most popular in Spielo’s lineup. The newest version is called “Deal Or No Deal: In It To Win It.” According to Brennan, while the new game retains the basic bonus, it is clearly different than its predecessors. “We wanted to make a clear distinction between this game and ‘Join ‘N Play,’ last year’s ‘Deal’ game,” Brennan says. “There is a new eligibility method, new wrinkles, a new aesthetic, and five bonuses—players get to play their own bonus.” The presentation, though, is still in a community-style game on a giant LCD facing the games. The player chooses between two base games, titled “Howie” for the host and “The Ladies” for Mandell’s beautiful assistants on the show. Graphics and reel symbols change according to the choice. The players qualify as “contestants” in the bonus with a small number of spins—the screen follows how many spins are left to qualify. “We strive to make the most player-friendly community-game eligibility requirements in the business,” Brennan says. Once the Briefcase Bonus starts, this version of “Deal” awards up to five “Bonus Enhancers”—like a sneak peek at the contents of the briefcase or playing the entire bonus with two cases as your own—which players can use to formulate their strategy as more cases are opened. This element changes the nature of the bonus, prompting some to stay in longer and press the “No Deal” button more times. Spielo also is launching a second game-show theme based on a license from Endemol, creators of Deal Or No Deal. It is a 100-reel game based on the game show 1 vs. 100. Its 100 individual reels each carry all symbols, and

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each is represented on the screen as a single symbol. The new community version of “Bejeweled”—in the same community format as “In It to Win It”—is one of four new PopCap games to be launched at G2E. It is the second group of games released under a license agreement with PopCap Games, owner of some of the most popular social games available on the internet. Last year, Spielo released slot games based on three PopCap titles known around the world—“Plants vs. Zombies,” “Zuma” and “Bejeweled.” The new games refresh all three of those titles with new games.

Boosting the Core As always, Spielo arrives at G2E with a fresh collection of core games in all its categories, all refined using extensive player focus-group research. Among the best is “Treasure Blast,” which is being launched in Atlantic City. “This game scored higher than anything, ever, in our focus groups,” Brennan says. The game’s central feature is a growing collection of wild symbols. During base-game play, whenever a rocket symbol lands on the reels, it shoots to explode several bomb symbols to transform them into wild symbols. Wild bomb symbols are collected during the base game for use in the free-spin bonus.

Other standouts in the core group include another Sphinx game—this time a five-line version of “Classic Sphinx,” designed for high denominations. It joins other games in the highdenomination category including “Secrets of Babylon,” a three-line, four-reel game, and the latest games in the Passion stepper series. Notable in the latter category is “Deal Or No Deal: The Big Deal,” a three-reel, five-line dollar game in the Passion series inspired by last year’s “Join ‘N Play” version of the game. Players can bet one, three or five coins per line, in a classic “buy-a-feature” setup. Players go into a paired-down, shorter Briefcase Bonus with an average multiplier of 6X. Other core games to head up Spielo’s collection include “Pyramid of the Sun,” which features bonus wheel symbols on adjacent reels which align to award a wheel bonus (“Everybody loves a wheel,” says Brennan); and “Jungle Riches,” featuring the patented “Trigger Tiles” bonus trigger system—when a bonus is triggered, the player selects one of the symbols for a credit amount he can take or risk for a higher or lower amount. Spielo arrives at G2E with one of the most impressive collections of new games in its history. While operators can view all the games in one place at the trade show, the collection will no doubt provide more fuel for the slot-maker’s ongoing road show. Clearly, this is a collection ready to go on the road.

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>>>GLOBAL GAMES 2013

| WMS Gaming |

Brand New Game A new cabinet, a new operating system and lots of innovation spells new success for WMS

t’s no news that WMS Industries—along with its slot-making subsidiary WMS Gaming—is in the process of being acquired by lottery giant Scientific Games. The combination of two companies that have always been leaders in their fields is expected to create a new powerhouse in a gaming industry where the lines between formerly diverse sectors like lottery and casinos continue to blur. Some in the industry had opined that WMS was on the decline after a heady couple of decades of success. But the leaders of Scientific Games knew better— particularly in light of the some of the innovations the slot-maker’s game developers have wrought over the past couple of years. One of the most successful has been “Gamefield xD,” one of the most creative slot formats of the past decade. The format places one 32-inch portrait monitor in front of the player horizontally—not unlike a pinball machine—with another 32-inch screen forming the vertical top box, to create a giant, interactive “game field” on which animation can extend seamlessly between top and bottom screens. It’s a format that was used to great effect last year with two new blockbuster versions of the company’s franchise “Wizard of Oz” brand, and another new game in the slot-maker’s other longtime franchise brand, “Monopoly.” “The cabinet style has resonated with players of all varieties,” says Allon Englman, WMS Gaming vice president and design chief. “The two ‘Wizard’ games have been among the most successful games that have hit the floors this year, from any manufacturer. It is a completely different form factor for players that allows a whole new game experience, thanks to having the 32-inch screen at that angle.” As the process of its merger with Scientific Games continues—the deal should close by the end of the year—it is clear that for 2013, WMS is on a creative roll. Part of that can be traced to the next generation of its operating system. Known as CPU-NXT3, the latest edition of the slot-maker’s OS provides a horsepower that is fueling yet more new game innovations that set WMS apart from the competition. That horsepower comes with a new cabinet, the “Blade,” which will be the company’s new standard for core video and mechanical reel games—a successor to two generations of “Bluebird,” the ergonomically friendly cabinet that has won WMS accolades in markets around the world. “Bluebird 1 was released in 2003; Bluebird 2 in 2008—so we were due for an upgrade to our look,” says Englman. “We took a very different approach than we

normally would take, and it is doing fantastically well.” Blade incorporates two seamless 23-inch monitors, angled in such a way that the player can view the top monitor easily, with no neck strain. It incorporates what the company calls “emotive lighting,” with a “Halo” concept that “combines direct and indirect illumination.” That quote is from marketing materials, but when playing a game on the cabinet, the lighting effect creates a unique vibe, and certainly a different feel than the Bluebird. Premium digital sound and a programmable button panel complete the effect. “We started rolling out this cabinet in March, and have 3,000plus in the field already,” Englman says. “All of our major customers have bought them, and all are performing very well. We launched six games in the cabinet at the outset, and all six games are performing at a significant premium to house average, which is very unusual.”

Our slogan for the show is ‘A Whole New Game.’ With the new cabinet, “new technology and new brands, we’re firing on all cylinders. ” —Allon Englman, VP and Design Chief

Global Gaming Business SEPTEMBER 2013

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>>>GLOBAL GAMES 2013

The new Blade cabinet gives a fresh look to all of ‘WMS’ new core video slots. The reel symbols have a decidedly different look than previous WMS video slots—the reels are larger, expanding to the entire screen; the reel sets use royal symbols now; some reel sets expand to eight symbols per reel.

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“This year’s G2E is all about leveraging the breakthrough platforms we’ve just begun shipping with Blade and Gamefield xD,” says Larry Pacey, executive vice president of global products and chief innovation officer for WMS. “With the wonderful success of Gamefield, we have really doubled down on the breadth of games, taking advantage of this first-of-its-kind form factor for the casino industry.” “Our slogan for the show is ‘A Whole New Game,’” says Englman. “With the new cabinet, new technology and new brands, we’re firing on all cylinders.”

Player Focus The new technology inherent in CPU-NXT3 and Blade has resulted in a lot of new game features—some obvious improvements like faster processing speed and better graphics, but also more subtle features designed to make the game experience more pleasant for the player. It is all the result of a careful, empirical approach to how the new power of CPU-NXT3 was to be maximized. To achieve this, WMS went to the source, bringing players in for focus sessions to ascertain what was important to them in a slot game. “We did a lot of research—more than we’ve ever done before,” Englman says. “We really talked to our players about what they wanted. Normally on a game, you do one prototype test (with players). On this format, we did three. We focused more on player feedback than ever before; we’re more focused on the core player than ever. As a result, we changed a lot and came up with some really great gameplay elements.” The fruits of this research can be found in some groundbreaking new features in CPU-NXT3 games which address some of the most common drawbacks players have expressed about the modern slot machine. For instance, games now feature a “Bonus Guarantee,” to relieve players of that all-too-familiar experience of reaching a bonus only to get a pay that’s less than the original bet. “What we found talking to players was that people were getting really annoyed with getting bonuses and not winning anything,” Englman explains. “So, we put this Bonus Guarantee in all of our new games: If you win less than 10 times your bet in the bonus, we’ll make you whole to 10 times your bet. The minimum you’re going to win on a bonus is 10 times your bet. It’s very simple, but no one has done it before.” Another new idea to come from player research is “Wager Saver,” which addresses the effect of minimum bets when the player is done playing. “With forced minimum bets, you may end up cashing out a ticket for 28 cents or 30 cents,” says Englman. “Players told us they are sick of these tickets. The operators are sick of these tickets. Say you’ve got 32 cents left on the meter. Wager Saver will give you an opportunity to wager that 32 cents for one spin at whatever level you last wagered.” 92

Global Gaming Business SEPTEMBER 2013

When the amount left on the meter is less than the minimum bet, the player gets the option of betting it on one spin of a video wheel with a 64 percent chance of winning a free spin at the minimum wager. “The good news is fewer tickets for the operator, and shorter lines at ticket redemption machines,” Englman says. “It’s a seamless way to fix a problem.” Other playerbased improvements include a customization feature in the next suite of Blade products that allows the player to dispense with all the bells and whistles like anticipation spins and free-spin music. “These are little tidbits that players have suggested, which we are incorporating quietly into our product,” says Englman. “At the end of the day, they pay all of our salaries, so they’re the most important people in the equation.”

Game Momentum While players are sure to like seeing the small changes that make all WMS games more enjoyable, the full measure of the new technology is, as always, in the games themselves. WMS arrives at G2E riding on the momentum created by that new technology with innovative entries in all categories. Nowhere does this apply more than in the Gamefield xD format, which will host three new premium games to be launched at G2E. Each uses the format to get the most out of a new licensed brand. In “Iron Man,” based on the series of films starring Robert Downey Jr. as the Marvel Comics hero, footage from the movies is worked intricately into the mechanics

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of the game. Downey’s Iron Man character appears to manipulate various aspects of the base game. The character (an engineer named Tony Stark who creates a powered suit of armor after kidnappers try to force him to create a weapon) appears in his laboratory to throw wild symbols onto the reels, or to expand the reels until they are 12 spaces high—a feat made possible by the tall game screen. Other raw footage from the films is cleverly manipulated into various bonus features of the game. In “Clue,” the second WMS game to be based on the famous whodunnit board game, the player is again rewarded in bonus events for solving a mystery by guessing which character used which weapon for a murder in which room of a mansion, but each room of that mansion also appears as a separate reel set on the top Gamefield xD screen. When a symbol representing one of the four mansion rooms lands on the main game screen, the corresponding reel set on the top box spins with from two to 15 wild symbols guaranteed. In the free game round, all five of the reel sets spin. “Beetlejuice” uses the Gamefield xD format to bring to life all of the most memorable moments from the quirky 1988 Tim Burton film starring Michael Keaton, Alec Baldwin and Geena Davis, a whimsical look at what happens after death. In a play on the film’s main character, a poltergeist who comes to life when you say his name three times, a picking bonus yields credit amounts until you pick his name three times, triggering the scene from the film in which Beetlejuice rises from his coffin in a grand gesture, only this time to award a prize. It’s a sequence that could only be done with the Gamefield xD format. Other bonuses include a free-spin round based on the famous scene in which the mischievous spirit causes the snobby family to go into a dance to Harry Belafonte’s “Banana Boat Song.” (“DAY-o!”)

As with other games using the new operating system, scenes from the film merge seamlessly with the game features, and the comedy of the film—it was voted one of the 100 funniest movies of all time in one survey— comes through in a hilarious game.

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The base game is unique in itself, with six reels that are 10 symbols high. “Beetlejuice was such a unique movie that we wanted to do a unique game,” says Englman.

Premium Brands The new Gamefield xD slots are part of a collection of high-profile brands that use the CPU-NXT3 technology to its fullest. One of the best is “Ferris Bueller’s Day Off,” based on the 1986 Matthew Broderick film that is consistently mentioned as one of the fan favorites of the decade. The main bonus is a picking bonus that depicts the “race” at the end of the movie as Ferris Bueller tries to make it home before his sister Jeanie (played by Jennifer Grey) or his hapless high school principal, Mr. Rooney (Jeffrey Jones), so no one will find out about the sick day he faked for a day of fun. As with other games using the new operating system, scenes from the film merge seamlessly with the game features, and the comedy of the film—it was voted one of the 100 funniest movies of all time in one survey— comes through in a hilarious game. Helping things out is a collection of fresh voice-overs from Edie McClurg, who played high school secretary Grace. (“They all adore Ferris. They think he’s a righteous dude.”) Other premium brands at the show will include new-and-improved versions of “The Price Is Right,” featuring host Drew Carey in a new batch of freshly recorded video and audio; “Yahtzee,” a new take on the classic board game; and “Wizard of Oz Ruby Slippers 2,” a new game in the Sensory Immersion 2.0 format SEPTEMBER 2013 www.ggbmagazine.com

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>>>GLOBAL GAMES 2013

that uses the WMS motion chair to take the player once again into the classic film in a virtual-reality experience. The latter game is a sequel to one of the most popular games in the Wizard of Oz series. “Ruby Slippers was one of the most successful games we’ve ever done,” says Englman, “and that was a sequel to The Wizard of Oz, which was the most successful game we’ve ever done. We’ve kept the game mechanics that really resonate very well with players, and added new elements.” Also featured will be premium games that have just been introduced to the market to rave reviews, including “Spider-Man”—featuring one of the most effective uses of the motion chair yet, duplicating the sensation of the hero leaping from building to building—and “The Lord of the Rings: Return of the King,” the final game in the trilogy based on the Peter Jackson films depicting JRR Tolkien’s masterpiece trilogy of fantasy novels.

Blade Running The new Blade cabinet gives a fresh look to all of WMS’ new core video slots. The reel symbols have a decidedly different look than previous WMS video slots—the reels are larger, expanding to the entire screen; the reel sets use royal symbols now; some reel sets expand to eight symbols per reel. The new cabinet combines with the new CPU to offer a backdrop for many entertaining bonus events. One standout is “I Love Lucy,” which weaves clips of many of the legendary sitcom’s funniest bits into an extensive picking bonus. Among the new features in some of the other core video games is “Reel Intensity,” a feature in which the range of multipliers for free-spin rounds goes up as the bet is increased. In the new game “Hot Molten Money,” for instance, multipliers for free-spin rounds are determined by a wheel spin—there is a different wheel for each bet level, which offers an incentive for higher wagers. Also in the core video category is “Goldfish 3,” a new version of the video slot that has been one of the top internal brands for WMS over the years. The new Goldfish uses a reel set with three symbols on the second and fourth reels and four symbols on each of the other three reels. “We’ve kept the features of the original Goldfish in a game that offers good value for the money,” says Englman. “This version has a beautiful top box, a beautiful marquee and all of the game-play elements that people really like about Goldfish.” There is also a three-reel mechanical version of the Blade cabinet, housing several new games that will be on display at G2E. In the Blade 3RM cabinet

Global Gaming Business SEPTEMBER 2013

are games including “Reel ‘Em In,” a new take on the WMS classic; and “Willy Wonka 3RM,” which places what has thus far been one of the company’s biggest hits in a three-reel mechanical format. Finally, the WMS booth at G2E will have a section devoted to Williams Interactive, the new subsidiary dedicated to spreading WMS content to online and mobile channels. “The key focus for Williams Interactive at G2E (and EiG) will be displaying the breadth of unique, differentiated game engines we’re bringing to online casinos integrating with our Remote Game Server in the next six months,” says Rory Shanahan, head of marketing for Williams Interactive. Among the games Williams Interactive is taking to online channels—following up successful online launches of “KISS: Shout it Out Loud!” and “Spartacus Gladiators of Rome”—will be titles on display at the show including “Li’l Red,” “Giant’s Gold” and “Bruce Lee Dragon’s Tale,” powered by the new “Super Multi-Pay” game engine. “We’re also bringing the land-based casino proven performer ‘Double Money Burst’ game engine to the wagered online gaming space with an all-new AAA brand we’re debuting for the first time at the trade show,” says Shanahan, “and we’re introducing the land-based player-favorite ‘Bier Haus’ to our game server content library.” G2E, along with the EiG show, is one of the official launch events for the company’s new mobile platform for online games, “empowering online casino customers integrated with our Remote Game Server to offer our unrivaled casino content to their players in the extremely important tablet and mobile device channels,” according to Shanahan. Online or on land, the focus of WMS this year has been to capitalize on the momentum begun last year. “We’re taking the technology product we released last year and making killer games,” says Englman. “That’s been my focus—to listen to the players, and to listen to our customers.”

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SPECIAL FEATURE

♣

BOT-TOM LINE ♦

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♦

Artificial Intelligence, Poker Bots and Winning at Online Poker BY STEVE KAROUL

pproximately 10 years ago I was approached by a company from Israel that was working on some artificial intelligence projects. The owner loved to play poker, so he started on a new venture to try to see if he could develop a program based upon artificial intelligence to help him to become a better poker player. This project involved the development and programming of the software, physics, mathematical analysis and a variety of gaming and casino marketing experts, including myself. All of this was before the current boom and popularity of both online poker and casino gaming. Einstein was ahead of his time as well as the father of modern physics. Einstein was a genius; Einstein was a curious type of individual who liked to question “Why?” My poker enthusiast friend was the same type of creative, curious individual but whose passion was playing poker and gambling. He was convinced that with the help of computers, proper programing and software development involving complex algorithms, etc., that he could learn the secrets and teach himself to be a great poker player and a great gambler. I am still not sure whether he wanted to learn these skills purely for enjoyment or to make lots of money as a semi-professional, highly skilled player. He never told me.

Call Me AI Artificial intelligence, or AI, can replicate or mimic many of the human brain functions. Computer programmers have often played with new software applications to try to match or improve upon human brain functions. This became very evident with the game of Chess. Deep Blue was the name given to a chess-playing computer developed by IBM. On May 11, 1997, the machine, with human intervention between games, won the second six-game match against world champion Garry Kasparov by two wins to one with three draws. Kasparov accused IBM of cheating, and demanded a rematch. IBM refused and retired Deep Blue. Kasparov had beaten a previous version of Deep Blue in 1996. IBM used one of its faster computers in 1997, but that 96

Global Gaming Business SEPTEMBER 2013

was 16 years ago. Computer chips, RAM and software have been improving dramatically and geometrically every year since 1997. It is amazing how powerful some of the new computers for gaming are today compared to just a few years ago. It is no wonder that other curious and creative individuals around the world have also tried to use AI to help them to become better poker players or better casino game players. I know of one group in particular from Russia that is actively involved in the development of some really creative AI applications for use with poker. Poker is an incredibly popular game—or as some view it, a sport—and therefore provides a great new opportunity for all types of AI applications which can aid in helping millions of people to become better skilled players. There are now several different software applications available online for playing both social and gambling games of poker. However, the task is complicated, because the programmers encounter many different and complicated situations such as game theory, random number generation, enormous game tree for more than three agents or players, substantial complexity with finding equilibrium strategies and finally, possible “deception” from other agents. AI estimates the pot odds based upon its hole card and other information available to all players. AI simultaneously simulates all possible hole cards and actions of other players as well as possible board cards for the subsequent betting rounds. The most complex task is to determine the probability for the current hand to follow one or another path of the game tree. AI is used to solve this problem by using opponent modeling. Each model contains a set of parameters, which are created for each opponent based on his actions in the previous games. Some of these parameters are quite common and widely used in statistical poker software while others are proprietary to each AI software developer. Currently, applied AI studies have achieved considerable success developing innovative solutions for both private and public sectors. Successful com-

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AI is a fact of life today. It exists. AI is no longer science fiction or something that you

mercial applications include automated trading systems, expert systems for medical diagnosis, customer services, toys and entertainment, whether it is for gaming or for non-gaming purposes. AI and poker make an interesting combination, but it is also a relatively new testing ground for complicated AI research. While making computer agents that are able to play poker, scientists encounter many interesting and complicated problems, which need to be carefully addressed and tested. One Russian software company has developed a number of new artificial intelligences to play poker at a professional level. The poker games include both no-limit Texas hold ‘em (two-10 players) and limit Texas hold ‘em (two-10 players). This particular Russian company now promotes that it has developed professional-level AI poker players, or “bots” (robots), and that this unique know-how can now be used in an advanced training system. Currently, the company’s lab is working on a new poker training service which will enable people to improve their poker skills with visually demonstrated deviation from optimal play, along with suggested strategy adjustments in real time. They report that this is not only a stand-alone product but a product that could also be seamlessly integrated into any gambling portal or online poker room. With further detailed research, I also found an American software company offering a series of professionally produced tutorials that are also partially based upon AI to help train members to become better poker players. They have produced more than 200 educational videos ranging in skill level from beginner to intermediate to advanced.

only see in the movies. AI is out there, and it is helping to educate and train people to be better poker players and better gamblers.

Bot-toms Up The best poker bots in the world include those from the University of Alberta Computer Poker Research Group, which is nearly 20 years old. Professor Michael Bowling, who has led the group since 2005, says the breakthrough came in 2003, when researchers decided to change their approach, shifting away from the methodology used to build chess bots. In 2006, the inaugural Annual Computer Poker Competition created more interest in poker-playing computers and established a friendly rivalry between the University of Alberta and Professor Tuomas Sandholm’s poker research group at Carnegie Mellon University in Pittsburgh. Basically, Sandholm recently said, poker bots “can rival good poker players, but not the best—yet.” His last word “yet” is what concerns many people. In summary, AI estimates the probability of a player’s actions using expert rules and opponent models. In case the expert rules fail to provide the necessary estimation, AI would employ neural networks trained on historical data. The poker AI architecture is constantly being updated with various techniques from the artificial intelligence and game theory domains, which may include regret minimization, gradient search, equilibrium approximation, recursive search methods and others. If all of this sounds pretty complicated, it is. So why even mention or talk about AI? The main reason is to educate people. AI is a fact of life today. It exists. AI is no longer science fiction or something that you only see in the movies. AI is out there, and it is helping to educate and train people to be better poker players and better gamblers. It is not perfect and it is not foolproof, but I sure would like to know if I was risking my money playing against a computer poker bot or against another human being. And for that matter, I would also like to know if that human being has already improved or fine-tuned his poker or casino gaming skills by

utilizing AI. Many professional poker players use bots to play multiple games at one time, allowing them to get the biggest advantage in the shortest time frame. Therefore, a proactive approach or strategy seems to make the most sense today, so my advice to players with interest in improving or fine-tuning their poker skills is that they spend a little time first to educate themselves either via poker playing bots or educational poker training videos that may also involve the principles of AI. This is also an issue that should concern online poker room operators, and how they might regulate the use of poker bots. What are poker bots? Poker bots are basically computer programs based upon AI that one can actually play against. The logic used by some poker bots utilizes different combinations of neural networks, regret minimization and gradient search equilibrium approximation, decision trees, recursive search methods and other expert algorithms from professional poker players in different types of poker games. Neural networks learning for opponent modeling is based upon a database with millions of hands of history from real poker players. The poker bot analyzes accumulated statistical data very quickly, which allows AI to adjust its style of play against opponents similar to the model we presented earlier of IBM’s Deep Blue computer playing chess against the reigning world champion. It is also interesting to note that most poker bots play fairly due to the fact that AI does not know your hole cards or what cards will be dealt for decisionmaking and opponent modeling. Poker bots are normally tested against real poker players, and demonstrate excellent results over a large number of hands. Therefore, “player beware,” as the saying goes. We also have to wonder about the strength of poker bots. A major assumption in determining “bot” strength is that all hands are played straight up. That is, all starting hands, flops, turns and rivers are distributed randomly for bots as well as for players. Consequently, some experts still feel that poker is a very difficult game to model using AI technology. They admit that there are some pretty good poker bots out there, but they still feel that a truly world-class poker-playing bot has yet to be developed and still may be some time off. With the growth of online poker over the past few years, other people feel that considerable money could be made by anyone who actually manages to achieve this. It is also important to note that AI is not bad. AI is a tool with many different uses, ranging from training people to learn to play poker or play casino games at different levels to uses in many other industries as well. Improving one’s skill level can be very beneficial to the player. AI can also be used in several other applications by operators or by casinos, such as detecting cheating players, analysis of trends, analysis of poker room ecology, etc. So, once again, be prepared and do your homework. Steve Karoul is a well-known and respected casino consultant with over 35 years of experience. Karoul has lived and worked in many different countries and has conducted casino marketing activities in more than 100 different countries. He is also a gaming industry innovator who openly shares his ideas and thoughts with fellow casino industry executives. For additional information, Karoul can be reached at skaroul@comcast.net or www.euroasiacasino.com. SEPTEMBER 2013 www.ggbmagazine.com

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8/14/2013 9:32:55 AM

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iGNA

Dear Mr. Fantasy Everyone bets on fantasy sports, but how can casinos profit?

espite years of avoidance, the worlds of fantasy sports and casino gambling are on a crash course. The burgeoning fantasy sports industry—projected to reach $1.7 billion in annual revenues by 2017— has thrived in the good graces of American professional sports leagues, a political distinction that ultimately resulted in an exemption under the Unlawful Internet Gambling Enforcement Act of 2006. The pastime walks like a duck but does not legally fall under the definition of gambling, and the fence erected between gambling and fantasy sports has enabled the latter to survive as a legal form of internet-based entertainment. Consequently, a marriage that could be lucrative for both industries has until recently been out of the question. For casinos, a mostly internetbased product serving a different consumer base had not been a terribly attractive supplement to land-based gambling. For fantasy sports operations, partnering with casinos—particularly those with sports books—would have been counterproductive to their efforts to avoid at all costs being associated with gambling. The fence is finally coming down, however, largely due to the gradual arrival of legal, licensed internet gambling in the United States. And if any moment were to signify the materialization of a long-anticipated courtship, it would be the New Jersey Division of Gaming Enforcement’s recently announced seal of approval. The agency on April 22 published regulations establishing standards for casinos to offer fantasy sports tournaments for money. With the implementation of N.J.A.C. 13:69P, New Jersey casino licenses have been expanded to include fantasy sports tournaments to patrons, and the activity “shall not be considered ‘gaming’ or ‘gambling’ as defined by existing state gambling law.” The new regulation also allows New Jersey casinos to contract with third-party entities to offer the tournaments. More intriguing is the simultaneous momentum for the movement to legalize sports betting outside Nevada. That the door for fantasy sports opened in New Jersey, where the governor is trying to break down federal barriers preventing casinos

By Mark Balestra

from operating sports books, is no coincidence. Bringing fantasy sports to New Jersey bettors, after all, could provide a stepping stone to regulating traditional sports betting in that state. So, ironically, given the bright line always drawn between fantasy sports and traditional sports betting, the legalization and proliferation of the former could stimulate the cultural shift necessary to bring about legalization of the latter. The progression from adopting fantasy sports to launching traditional sports books would not be unlike legalized internet poker cracking open the door for internet casino gambling. Could the acceptance of fantasy sports be to the legalization of traditional sports betting what the acceptance of internet poker has been to the legalization of other forms of online casino gambling?

“

Could the acceptance of fantasy sports be to the legalization of traditional sports betting what the acceptance of internet poker has been to the legalization of other forms of online casino gambling?

”

The parallels are undeniable. Both activities—poker and fantasy sports—have managed to avoid the gambling classification; both are embraced by the masses as legitimate mainstream entertainment; and both are played with great enthusiasm by those who make the policies. Poker and fantasy sports also share another trait that led to prolific growth: innovation of product. In the early ’00s the poker industry came to force with the invention of the hole-card

Global Gaming Business SEPTEMBER 2013

camera, enabling TV viewers to better follow Texas hold ‘em, almost instantaneously turning poker into one of America’s most captivating forms of online entertainment. For fantasy sports—albeit less dramatically—it was the arrival of daily games. Long gone are the days when players who missed drafts had to sit the season out or wait for a mid-season league to open up, and no longer do players need to organize groups of friends and coworkers into leagues. Customers can come and go as they please without making a long-term commitment or adhering to a schedule, and the variety of games available is virtually limitless. The quick-hit approach is much more suitable to today’s consumer. It is not a new concept, but its successful deployment by the likes of Fanduel and DraftDay in recent years has forever changed the product. Similarities aside, however, the jump from poker to other casino games has no barrier comparable to the challenge professional and college sports leagues present to sports betting. The leagues’ anti-sports betting lobby played a key role in keeping efforts to prohibit internet gambling in the United States on track, prompting the anti-prohibition movement to abandon its support of regulated online sports betting long before the passage of UIGEA and subsequent state-level initiatives for legalization. But culture and consumer demand ultimately brought the regulation of internet gambling, and the proliferation of fantasy sports could nudge American consumers in the direction of embracing traditional sports betting. It prompts one to consider, then, whether the arrival of fantasy sports in the gambling community is an end or a means. This column is written by the producers of iGaming North America, the most comprehensive conference and trade show about the online gaming industry in the region. Mark Balestra is the founder and director of BolaVerde Media Group as well as co-producer of the iGaming North America conference scheduled for March19-21, 2014 at Planet Hollywood in Las Vegas. For more information on iGNA, visit www.igamingnorthamerica.com.

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Murren Predicts Online Gaming Compacts Within a Year player pools but create a more uniew Jersey and Nevada could form regulatory landscape—finding be sharing online gamblers as a consensus on the federal level reearly as next year, according to Jim mains a challenge. Compacts would Murren, CEO of MGM Resorts also enable states to share resources International. for identifying the location of gamMurren told analysts on an blers, guarding against underage earnings call that casino officials in gambling, stolen identities and the two states were discussing a credit card fraud. compact to increase market share. MGM is dedicating its resources “I think it’s likely that in 2014 to building multi-border relationwe’ll see a compact between New ships. Jersey and Nevada,” Murren said. Jim Murren, chairman and CEO “We have a big team that is “We’ve really been focusing on of MGM Resorts International preparing us on a state-by-state basis Nevada’s ability to compact with and on the states that we believe will other states, create more liquidity.” be the most productive for us,” he said. “And Of the three states that offer online gaming— we’ve been working with the state of Nevada on Nevada, Delaware and New Jersey—the home state their efforts to compact with other states.” of Las Vegas is the smallest when it comes to popuAccording to some analysts, Nevada could lation. It also does not have the cross-border populagenerate $50 million to $250 million in annual tion of the other two. With online poker confined revenues from online gambling. The larger and within state borders, the lack of liquidity could have more populated New Jersey is expected to genera serious impact on Nevada’s online reach. ate $500 million to $1 billion yearly. Nevada launched online poker in April, with only one company, Station Casinos’ Ultimate Gaming, currently servicing players. Other companies— Reid At It Again including those with physical properties in Atlantic lthough he failed to push bills legalizing onCity—are expected to come on line soon. MGM line poker, U.S. Senate Majority Leader and runs the Bellagio, The Mirage and MGM Grand in Nevada Senator Harry Reid is concerned about Nevada and is a co-owner of Atlantic City’s Borgata Casino Hotel & Spa, for example. Caesars Entertainment, which has casinos in Nevada, has four properties in Atlantic City. Murren expects Caesars to be the next poker site to go live in Nevada with WSOP.com. New Jersey is moving rapidly to launch a complete line of online casino games by the end of NoSenator Harry Reid vember. With the largest population among the three internet gaming states and densely populated neighboring states with a tradition of traveling to the proliferation of online gaming in the stateAtlantic City, the state is set to be the industry by-state legalization process. Sources tell GGB leader in the U.S. that Reid is ready to make one more effort to le“Nevada is striving to do what it can in regards galize online poker—and prohibit any other to compacts,” said A.G. Burnett, chairman of the form of online gaming. Nevada State Gaming Control Board. “We do not Some experts believe that Reid wants to see jump into the fire without having done a lot of cauan interstate compact between New Jersey and tious research and study into the particulars of such Nevada before he supports any federal bill that agreements, and that phase is nearing completion.” will outline the rights of those states. Murren said that at least 40 of the 50 states are “Reid is terrified that California will approve in some stage of debating the adoption of online some kind of online gaming,” says a highly gambling. State compacts would not only increase placed gaming source. “He believes that will

102 Global Gaming Business SEPTEMBER 2013

force other states to get into the game and there won’t be any chance to stop that progress.” Some gaming executives are discouraging any federal moves since the interstate legalization seems to be proceeding relatively smoothly. “If New Jersey can regulate online gaming effectively and operate it profitably, all bets are off,” he told GGB News. But there’s also a “nuclear option” reportedly being considered by Reid. One source says Reid is ready to revisit 1962’s Wire Act and insert a provision that specifically prohibits online gaming of any kind. It’s unclear how that would impact the three states that have already legalized some form on online gaming—New Jersey, Nevada and Delaware—but it would certainly end the expansion of the activity.

New Jersey Adds New Features to Online Gaming

awmakers in New Jersey are looking to tweak the state’s online gambling law as Atlantic City casinos gear up to go live on November 26. In addition, the state Division of Gaming Enforcement is updating its online gaming regulations to provide for more security. Democratic state Senator James Whelan, a former mayor of Atlantic City, has addressed the fine points of the bill when it comes to housing online gambling equipment. “Existing law provides that equipment used in connection with the conduct of internet gaming at Atlantic City casinos must be located at those casinos,” Whelan wrote in his amendment. “This bill would permit such equipment to also be located at a facility in Atlantic City, other than a casino, that is secure, inaccessible to the public, and specifically designed to house that equipment, and where the equipment must be under the complete control of the casino licensee or its internet gaming affiliate.” Governor Chris Christie signed the online gambling bill in February, specifically on assurances that bets would take place only on servers located at Atlantic City casinos. Whelan’s new bill slightly expands that premise, as casinos determine how much space they will need to house the equipment. With online partnerships established and 37 online gaming companies looking to get involved in New Jersey, Atlantic City properties are evaluating their infrastructure needs. The matter isn’t expected to be taken up until September. In related online New Jersey State Senator James Whelan gaming news, the

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everal companies that have applied for an online gaming license in New Jersey have come out with their intentions for the market, including 888 Holdings, which announced it will launch its own branded poker and casino games in conjunction with Caesars Entertainment. The state Division of Gaming Enforcement received 37 applications from a variety of online gaming vendors at the close of July, but will not release details until those companies have completed their licensing review. That didn’t stop at least three online industry leaders from making their intentions known, with

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fficials and executives in Gibraltar’s thriving online gambling industry are crying foul over Prime Minister David Cameron’s plan to impose a 15 percent tax on U.K. residents who place bets on the dozens of sites operating from the British overseas territory. While Britain is responsible for Gibraltar’s military and international relations, the territory has significant autonomy over trade and industry issues, including the ability to set taxes. What Gibraltar cannot necessarily control is taxes that London imposes on Britons in Britain. The tax would be “clearly against the common-sense logic of electronic commerce,” said Phill Brear, Gibraltar’s gambling commissioner. He said that about 60 percent of online bets by Britons were placed through Gibraltar sites. “We now hear a lot of talk in the U.K. about creating a level playing field. But you can, in fact, never level the field between high-street shops and online services.” The proposed 15 percent point-of-consumption tax, the same as that imposed on Britons who bet within Britain, would be a sharp markup from the 1 percent that Gibraltar currently levies. The plan, which Cameron wants to take effect by December 2014, would also make it compulsory for Gibraltar-based companies to have a British license to serve British customers. The change would put “a huge and unwanted cost on our business,” said Steve Buchanan, who heads the Gibraltar operations of Ladbrokes. It’s a big deal for Gibraltar as well. The industry represents about 15 percent of its US$1.89 billion economy, and gambling companies provide jobs for about 2,500 of the territory’s 30,000 residents. Even with the worldwide financial doldrums, the business continues to grow. Four more Gibraltar-based operators entered the field in the last year, raising the total to 25, each of which might operate several websites. The industry is setting up a common legal fund to help pay for a court challenge in the European Union. Their argument is that the tax is a protectionist measure that violates the E.U.’s free-market rules.

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state DGE has put forth several amendments to its online regulations, specifically in areas of security. The regulations, which were originally published on June 3, are going through a 60-day comment period prior to final adoption. Changes to the internet gaming regulations include standard log-in procedures, various requirements to log in again after inactivity or other changes in activity, bank account linkage issues and a requirement that free-play games must offer the same payout percentages (or lower) if there is a real-money counterpart to the game.

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several more sure to follow. Out in front is 888 Holdings, which announced a partnership with Caesars Entertainment—the largest operator in Atlantic City with four casinos— earlier this year. The Caesars agreement was signed through a joint venture by 888 and investment group Avenue Capital, and resulted in the creation of the All American Poker Network. Now 888 will expand its Caesars deal by offering its own branded content through one of Caesars’ properties—either Bally’s, Caesars, Harrah’s or Showboat. 888 secured an operating license from the Nevada Gaming Commission earlier this year, and along with its Caesars affiliation has formed a partnership with Treasure Island, which will launch the first AAPN room in Nevada. In Delaware—one of only three jurisdictions that offer online gaming—the Delaware Lottery selected 888 and Scientific Games to power its online gambling technology. The company’s interest in New Jersey is part of an overall strategy to reenter the U.S. gaming market after leaving in 2006.

Tropicana Signs with Gamesys for New Jersey Online Gaming

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ropicana Atlantic City and Gamesys Limited announced that they have entered into a definitive agreement that will allow both Tropicana and Gamesys to offer internet gaming in New Jersey. The agreement and launch of internet gaming in New Jersey are subject to required regulatory approvals. “We are pleased to have Gamesys as Tropicana Atlantic City’s internet gaming partner and excited to grow our gaming business and reach new customers,” said Tony Rodio, Tropicana’s president & CEO. “Gamesys has a proven track record in the U.K. of providing excellent products and customer service, and we look forward to launching Tropicana’s internet gaming business with them.”

Zynga to Abandon Real-Money Gaming

eading social gaming developer Zynga has announced it will abandon its pursuit to enter the U.S. online gambling market and will concentrate on social media games. The strategy is a risky one for the company, which has been steadily losing players and was looking to online gaming as a major revenue stream. “Zynga believes its biggest opportunity is to focus on free-toplay social games,” read a statement from the company following the announcement of second-quarter earnings. “While the company continues to evaluate its real-money gaming products in the United Kingdom test, Zynga is making the focused choice not to pursue a license for real-money gaming in the United States. Zynga will continue to evaluate all of its priorities against the growing market opportunity in free, social gaming, including social casino offerings.” Zynga launched real-money casino titles— Zynga Poker and Zynga Bingo—in April in the U.K. through a partnership with online gaming firm 104 Global Gaming Business SEPTEMBER 2013

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bwin.party digital entertainment. Though the company was making some headway, it was too early to tell if those games were meeting financial expectations. Zynga’s second-quarter earnings were down 40 percent compared with last year, though the loss was not as severe as Wall Street analysts had predicted. However, Zynga continues to lose customers at an alarming rate as competing social games come on the market—most notably from giants in the casino industry like Caesars Entertainment, IGT and others. With profits down, executives leaving and widespread company layoffs, Zynga founder Mark Pincus made the bold decision to hire Don Mattrick, former head of Microsoft’s Interactive Entertainment Business—the division that produces Xbox—as its new CEO. Mattrick, who took over the reins in late July, is now leading the company in a new direction. “The decision really centered around focus,” said Zynga COO David Ko. “Zynga is in a transition, and we must stay focused and prioritize against the biggest opportunities that leverage our DNA in social and free-to-play.” Zynga, which has applied for a Nevada gaming license where online poker is now active, will try and boost its bottom line with games similar to its popular FarmVille, CityVille, Words with Friends, and its casino-type games. Zynga sells virtual chips on its Texas Hold ‘em game, for example, but players in the U.S. cannot cash out winnings. With its Nevada application mired in the regulatory process, the San Francisco-based company will not pursue real-money online gaming in states such as New Jersey and Delaware—where the field is becoming costly and crowded. Investors have reacted negatively to the new strategy— Zynga’s stock plummeted after the news was announced. But some financial analysts believe the plan could pay off in the long run.

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fter monitoring Ultimate Gaming’s online poker website for three months, the Nevada Gaming Commission is confident the site’s security will keep minors and out-of-state players from playing. The field trial ended July 11, after which commissioners gave their final OK to the site. Ultimate Poker has dealt more than 9 million online hands since it launched in late April, the Associated Press reported; it is now the only legal online gaming site in the United States on which users can play for cash. Ultimate Gaming is a majority-owned subsidiary of Station Casinos LLC. “From the Nevada perspective, it’s a very important moment in that it proves that the technology works,” Tom Breitling, Ultimate Gaming cofounder and chairman, told the Reno Gazette-Journal. “If it works in Nevada, we know that it can work in other states.” Though the site is restricted to players located within state boundaries, thousands of people from across the United States and 30 other countries have registered with the site. “It proves that there is pent-up demand for online poker,” said Breitling, who predicted this new market could generate $50 million to $100 million in its first year.

Senate Committee Considers Online Gaming Laws

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lthough two bills to legalize online gaming or poker have been introduced in the U.S. House of Representatives, there have been precious few congressional hearings to hear the facts of the issues involved. Last month, the Senate Commerce Committee’s Subcommittee on Consumer Protection held a hearing on the subject, with the title “The Expansion of Internet Gambling: Assessing Consumer Protection Concerns.” Oddly, however, online gaming was a subtext to a litany of dangers enabled by the illegal online casinos and poker rooms active today. SEPTEMBER 2013 www.ggbmagazine.com 105

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One witness suggested that terrorists are aware of the money-laundering aspects of illegal online gaming. “There are indications that terrorists in Afghanistan have been using online gaming to launder their funds,” said Chuck Canterbury, national director of the Fraternal Order of Police. “There is no legal or regulatory framework for Nevada Senator law enforcement to shut down this activity.” Dean Heller Nevada Senator Dean Heller brought Canterbury before the committee to testify why the existing “free for all” operations of illegal online gaming cannot continue. “We need to be making sure we can stop children and perhaps problem gamblers from getting caught up in this web,” Heller said. Subcommittee Chairwoman Claire McCaskill (D-Missouri) says many people would be reluctant to reveal such information. “It creates a real friction between those people who want privacy in this age of big data,” McCaskill said. “I don’t know how they’re all going to feel about being able to play online poker if they’re not willing to take their picture every time they walk in.” The American Gaming Association was appreciative of the Senate focus on the illegal online gaming dangers. “Internet poker is a reality that is here to stay,” said Geoff Freeman, president and CEO of the American Gaming Association. “The question is whether Con-

gress will ensure minimum regulatory standards of online poker, protect consumers, exclude bad actors from the American market and provide Native American tribes with an appropriate regulatory framework.”

France Considering Regulating Social Gaming

he French government is moving ahead with amendments in its consumer laws that could ban real-money social and skill gaming operators from the French market. French gaming regulators have proposed changes to the law as part of a larger discussion on consumer reforms, specifically targeting lotteries and games of chance or skill where consumers must pay a fee to play. The proposed regulations would ban any game of skill or chance that requires a financial transaction in order to play and offers any “hopes of gain”—whether it be prize money or goods such as a car or a house. Described as “falsely free games” by French authorities, this broad reinterpretation of the law could prevent social gaming companies working on Facebook and apps developers offering “freemium” products from accepting French customers, and would effectively kill off their business models. The games would be banned at first, and then at a future date be subject to regulation, most likely by ARJEL, the French online gaming authority. The inclusion of the words “hopes of gain,” whether financial or not, could essentially bring social gaming under the new regulatory framework.

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A further amendment in reference to skill games would be added, stating: “This prohibition covers games whose functioning relies on the know-how of the player (on the player’s skills). The financial contribution exists in all situations where the organizer requires a financial contribution from players prior to accessing the game, even if a subsequent reimbursement is made possible by the rules of the game.” If enacted, the law would essentially regulate social media gaming, a topic often discussed by European Union member states. The French government could potentially threaten social gaming companies throughout Europe if the E.U. pursues a similar action.

Full Tilt to Offer Casino Games

ull Tilt Poker intends to offer casino games alongside its popular poker product. The Rational Group, owner of PokerStars and Full Tilt Poker, confirmed that Full Tilt will add casino games to its platform in the near future, differentiating it from its sister site, which will remain a poker-only provider. “The Rational Group intends to expand our product offering to include casino-style games on Full Tilt Poker,” the company said in a statement. “While adding new games, we remain committed to building our leadership in poker with PokerStars and Full Tilt Poker and continuing to deliver the high-

est quality poker experience to players.” Full Tilt is reportedly in the initial stages of a rebranding and expansion. It has been speculated that the site might become Full Tilt Gaming, where blackjack, roulette and perhaps slots will be added to the product line alongside poker. Full Tilt and PokerStars were two of the top brands to offer online poker in the U.S., as well as internationally. Both sites were shut down in the U.S. by the Department of Justice in 2011 under a crackdown on online gaming. PokerStars and Full Tilt came under the Rational Group umbrella as part of a settlement with the DOJ. Recently, PokerStars announced a partnership with Resorts Casino Hotel in Atlantic City, as New Jersey rapidly moves to offer a full range of online casino games in the fall. Resorts is the only Atlantic City casino that partnered with a site without a known casino software partner. With the new offering, the Rational Group may have the software it needs to be competitive in New Jersey and throughout the country. What role Full Tilt will play in the Resorts partnership is unknown. The site remains a popular poker brand throughout Europe, but its parent company has faced opposition as it vies for a coveted New Jersey casino license.

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BACCARAT AND DARWIN: By Dean M. Macomber

THE EVOLUTION OF ONE OF THE OLDEST GAMES IN GAMING

n a recent trip to Macau, Jason Ader, one of the key banking executives responsible for funding the casino expansion that took place during the Golden Years of U.S. casino expansion, reported seeing “a crowd of 250 Filipino and Thai women playing, screaming, fighting, and yelling around a table. In short, they were going nuts, and a security guard told him that this kind of stuff happens all the time.” The game they were playing was, of course, baccarat. However, if we did not know that in advance, few would guess that this heretofore sophisticated, quiet and staid game of baccarat has been numerically supplanted by new formats of baccarat that have morphed to more effectively cater to moneyed Asians playing in the new gaming capitals of the world, Macau and Singapore. Going in the other direction, new mass marketing-oriented versions of baccarat have also evolved to cater to the hoi polloi in Las Vegas and other venues around the world where gaming has spread. With the game of baccarat generating some US$35 billion in annual gaming revenue in Macau in 2012 alone, it is easy to speculate that baccarat now ranks as the single largest source of table game revenue in the gaming industry today. So how did this happen? Let’s examine the evolution of baccarat but also focus on new developments in the hope that doing so might provide those not taking full advantage of this phenomenon to do so. And, for those who might not be aware of the potential of baccarat, we’ll review some catalytic ideas to probe the depth of this wonderful game in any market area.

The Physical And Formality While its roots in North America are not well documented, baccarat was brought “as is” some time ago from Europe to North America—specifically the casinos in Cuba—to serve wealthy Latin Americans and the occasional Middle East and European traveler. Later, the game migrated to the U.S., and has been evolving in the high limit/VIP rooms of the Las Vegas Strip and other North American casinos for some time. The traditional game held 12 to 14 seated players, three tuxedo-clad dealers and two supervisors who watched the games from elevated platforms (“ladders”). This “big game” of baccarat is operated by the shoe being passed from player to player. The dealer (on the “stick”) calls the game standing up, while the other two dealers take and pay bets. This game was first replicated in small upscale semi-private high-limit rooms 108 Global Gaming Business SEPTEMBER 2013

often named Salon Prives to instantly manufacture the elite-ness that Europe took centuries to develop. Over time, several casinos experimented with offering a limited number of baccarat tables on the mass-market casino floor. The core game was compressed and transposed onto seven-spot, blackjack-sized mini-baccarat tables and the slightly larger nine-seat midi-sized version, primarily by letting one dealer exclusively handle the cards, and take and pay bets. Thereby, the massmarket baccarat game became faster and more informal, with no tuxedos worn by the dealing staff. The greater game speed allowed minimum bet limits to drop to levels affordable to mass-market players and, while the game did not catch on like wildfire, it was certainly becoming more widely appealing.

Asian Introduction While the above changes were occurring in Las Vegas on the other side of the world, Macau’s role as the progenitor of Asian gaming had already begun long ago, in the mid-1800s. It took until 1960, however, when the monopoly gaming license was granted to Dr. Stanley Ho and his gaming company—today known by its acronym SJM—for Macau to offer modern casinos and begin its march to supremacy. With demand exceeding supply, it was here that Ho quickly recognized that the name of the owner’s game was to provide the maximum capacity to the marketplace. Rather cleverly, Ho allowed two players in addition to the one that was seated, and making the betting decisions to bet in two additional bet circles behind the traditional bet area. Hence the term “back betting.” This changed a 12-seat baccarat table to a 36-position table, and created additional game capacity, player compression and game intensity—at times, barely controlled pandemonium. No doubt the pent-up demand of some 1.3 billion Chinese just across the Macau border in the People’s Republic of China (PRC), not to forget the 700 million more in nearby Hong Kong, coupled with the natural Asian cultural proclivity toward gaming to drive the world pace-setting demand, but Ho found a way to harvest it faster. Steve Karoul, longtime international casino marketing executive and president of Euro-Asia Consulting, has lived and worked extensively in Asia, and comments that back

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betting in Macau was “probably one of the greatest examples of creativity in the history of gaming, resulting in millions of dollars in incremental revenue for casinos at no additional expense.” Fast-forwarding to the turn of this century, soon after the handover of the Portuguese enclave back to the PRC came the breakup of Ho’s monopoly and the eventual awarding of gaming concessions and sub-concessions to five new casino owner/developers in addition to Ho, who unsurprisingly was also awarded one of the new gaming licenses. With gaming demand still seemingly insatiable, now six CEOs and their executive staffs focused on increasing capacity. The owners realized early on that they could not build new casinos fast enough or big enough. Consequently, the new casino executives fiddled with game dimensions to try to fit more games into a finite amount of already-constructed casino space. But this optimization effort soon ran its course, and focus shifted to game speed as another way of increasing capacity. In this regard, automatic shufflers were first employed by Western operators both in the search of the highly valued increase in game speed and for control purposes as well, given the high average bets taking place. But, an unexpected backlash to these automated devices arose from the Asian players whom Asian operators probably saw coming while the Western operators did not. For most Asians, gambling is not so much a leisure/entertainment activity as it is an event where Asians test their “luck” or “fate.” The luck thing and fate are inextricably linked to Asian life, as expressed in the concept of “joss,” the practice

“Tie” bet in baccarat. Casino owners some time ago decided that it might be a good idea to psychologically compensate for the possibility of a push when the final numerical value of both the Player’s and Banker’s hands is equal. So, they allowed players to make a side bet on each hand that a tie will occur which, if it does, is paid 8-to-1 but if it does not, the bet loses. The Tie bet has a casino statistical advantage of 14.4 percent when eight decks are being played, but offers the player the only way to win when a tie occurs. But, I believe it was in Asia where a “Pair” bet was added to the game. In this instance, a Pair bet wins for a player betting on the Player hand if the first two cards dealt to the Player hand are a pair. The same holds true for a player betting on the Banker hand if the first two cards dealt to the Banker hand are a pair. The Pair bet typically pays 11-to-1 and gives the casino a statistical advantage of 10.4 percent with an eight-deck shoe. The addition of the Pair bet was not an attempt to offset a non-payment situation; rather, it was only a means to offer players another way to test their luck. It worked. Tinkering with the casino statistical advantage of the core Banker and Player bets to my knowledge first occurred in North America with some brief and sporadic experimentation with lowering the traditional 5 percent commission on Banker bets to 4 percent. This lowered the casino statistical advantage on the Banker bet from 1.058 percent to 0.599 percent. This was a significant drop; luckily for casino owners this option never caught on.

Counting on the Commission

For most Asians, gambling is not so much a leisure/entertainment activity as it is an event where Asians test their “luck” or “fate.” The luck thing and fate are inextricably linked to Asian life. of feng shui, use of symbology, and countless other aspects of Asian culture and life. First-time Westerners—including me—at first pooh-poohed the role of luck and fate, but after standing in a Macau baccarat pit for 30 minutes soon realized it was real. It should have been no surprise that the luck that Asians were trying to determine was now perceived to be ordained by a machine, not fate, when the cards were shuffled by an automatic shuffler. It did not take long for these zippy, efficient, and control-oriented machines to be replaced by the old plastic shoes, and responsibility for the shuffle to be returned to humans once again. But, to keep the shuffle time of a cycle as close to the automatic shuffler as possible, the return to the plastic shoe was accompanied by cards pre-shuffled before being delivered to the table, first by a crew of dealers whose sole job was to shuffle cards, and later predominantly by cards pre-shuffled at the card factory far out of view.

Additional Bets And The Statistical Advantage Additional bets add capacity as well. Besides the traditional “Banker” and “Player” bets, there has always been a

Attention shifted to trying to find a way to remove the awkward, time-consuming and dispute-provoking collection of the 5 percent commission paid on winning Banker hands. Worse, the determination and collection of the commission really, really, really slowed the game down. Casino executives turned to those to whom math is music, and who can make it sing, to find a way to remove the commission but replace the casino’s revenue earned from it by increasing the natural statistical advantage via changes in the win-loss and payout rules. Even though there were multiple win-loss and payout changes that could have accomplished this objective, the two no-commission baccarat games that have survived and proven popular are EZ Baccarat, a proprietary game, and Super Six. In a no-commission baccarat game, by definition, the casino’s statistical advantage for wagers on the Player bet remains at 1.235 percent because the commission does not apply to this wager. On the Banker bet, however, in the traditional baccarat game the casino’s statistical advantage is 1.058 percent. But, with the Super Six baccarat version of no-commission, it increases to 1.458 percent to the player’s disadvantage versus EZ Baccarat, where the casino statistical advantage is less than the traditional game at 1.016 percent to the player’s advantage. With EZ Baccarat, the change to the casino statistical advantage is achieved by retaining the 1-to-1 payouts for all winning Banker bets except when the Banker wins with a three-card total of 7. In this single instance in EZ Baccarat, the bet is a push; no amount is paid to the bettor on the Banker hand. EZ Baccarat attempts to psychologically compensate for the introduction of a second “push” situation into the traditional baccarat game by offering a “Dragon 7” proposition bet that pays 40-to-1 when a three-card total of 7 ocSEPTEMBER 2013 www.ggbmagazine.com 109

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EZ Baccarat

In both EZ Baccarat and Super Six Baccarat, the presumption is that the real or perceived negatives as felt by the player will be offset by other positives. Besides those already mentioned, the driving advantage to the player is that the greater game speed allows the casino to offer lower minimum bets that heretofore were not available. This opens the game up to an entire new range of players. curs. The Dragon 7 bet has a casino statistical advantage of approximately 7.6 percent. EZ Baccarat also offers a Panda 8 bet, a proposition bet on the Player bet side: when the Player wins with a three-card score of 8, the Panda 8 bet pays 25-to-1 with a casino statistical advantage of approximately 10.2 percent. In Super Six Baccarat, the rules are the same as traditional baccarat, except that a winning Banker bet pays half, or one unit for two units on a winning total of 6. In both EZ Baccarat and Super Six Baccarat, the presumption is that the real or perceived negatives as felt by the player will be offset by other positives. Besides those already mentioned, the driving advantage to the player is that the greater game speed allows the casino to offer lower minimum bets that heretofore were not available. This opens the game up to an entire new range of players.

Balancing Act But, to some Asian players, changes to the win-loss and payout rules can be meaningful regardless of the impact on the casino statistical advantage. With EZ Baccarat, whereas before the players wagering on the Banker won in a three-card total of 7, now there is a push. In Super Six, instead of a winning Banker bet with a winning total of 6 paying one-to-one, it pays half. In both instances, if you are Asian you might question whether the modified game is the same test of “fate” as the traditional game, or has casino management become an interloper forcing itself into the laws of fate? As a result of this concern, in the Asian VIP rooms the traditional commissionbased baccarat game that allows the players to handle the cards is still dominant. The huge average bets made at these tables make up for the slow game speed. No casino operator wants to cram down a no-commission baccarat game on this level of player and risk losing them to another casino that would simply continue to offer the traditional game to acquire their play. Some no-commission baccarat games may be found in the high-limit area of the main casino floor, a step down from the level of play in the VIP rooms. Some of the higher-limit players appreciate the faster game pace, and have adapted/accepted the changes necessary in order to get the liberalized (read “lower”) minimum table limits. Thus, no-commission baccarat is most typically found in the mass-market gaming area with lower table minimums as the additional motivation to get players to play. With back betting allowed in Macau and with mass-market demand still exceeding supply, the potential revenue gains from a mass-market-oriented baccarat game are significant. By way of illustration of the popularity, acceptance and usage of no-commission 110 Global Gaming Business SEPTEMBER 2013

baccarat in Macau, only 1 percent of one major casino’s VIP/junket-driven games are no-commission, whereas in their high-limit area off the casino floor, almost half of the games are non-commission. On the mass-market casino floor, almost all are non-commission.

Into The Tech Age Borrowing a term from Silicon Valley, the gaming industry in Asia introduced “disruptive technology” to the game of baccarat in order to take the game to its next stage of evolution. LT Game, a gaming vendor, essentially found a way to terminal-ize baccarat, i.e., convert the game into a hybrid dealer/machine-operated game. LT Game retained the dealer and the “human element” to keep the luck thing and fate intact, but allowing players to sit in front of terminals to buy in, make their bets, receive payoffs when they win, and cash out quickly without human intervention. Essentially, a single dealer deals the cards following the same face-up procedures as used in mini- or midi-baccarat. Since the players do not touch the cards, they need not sit at the table; they can sit at a bet terminal. However, LT Game films the dealing taking place and projects the image via a live video stream that is displayed on each player terminal. The beauty of this approach is that the number of betting terminals can presumably be infinite. In practice, the terminals typically surround the dealer in half or full circles or some other such promotional configuration. Players can make bets on their terminals quickly. To make sure this happens, there is a count-down clock built into the system so the players must bet within a certain time frame or be frozen out, thus achieving the target game speed set by the casino. Large terminal seating areas, a faster game and lowered labor costs allowed the casinos to drop their minimum bets well below those required in their traditional live mass-market baccarat tables of approximately $35 to $60 (HKD$300 to HKD$500). Soon, some casinos were building replicas of stadiums affording greater visual appeal, socialization and group excitement. Multiple dealer/games were offered “in the center” to those seated in the betting stadium so that a player at one terminal could be betting on more than one game at a time. Table outcomes, statistics and trends are prominently displayed overhead and around the stadium seating to promote the games to those playing as well as those watching. At one casino, players can wager on up to 14 different games taking place at one time via one terminal, picking or choosing the ones they feel are most lucky. Stadium betting on multiple games also allows Asian players to chase a per-

Des i gni ngt hef ut ur e.

Ref l ect i ngonpas ti nnovat i on.

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ceived run, known as “chasing the dragon,” something that is physically impossible to find in large casinos with any certainty except through the coincidence of being in the area where a run is occurring. And, even if the player knew where a run is occurring, they may not be able to reach it in time and, when they can, they still may not find an open betting position at the table when they get there. None of these restrictions occur with a terminal-ized, stadium baccarat game setup. All of these efforts and more turned a quiet, staid game into a more democratic, participatory, fun, interesting, social, and sometimes epic game.

Dean M. Macomber has over 38 years of gaming experience ranging from dealer to CEO, consulting, development, funding, pre-opening, operations, marketing, and profit improvement in numerous venues, focusing recently in Asia. He is president of Macomber International, Inc., a consulting firm. He may be contacted by e-mail at macomberinc@gmail.com. The source of the statistics quoted in this article is the Wizard of Odds (wizardofodds.com).

Optimization Via Reverse Engineering I cannot say for certain how the latest derivation of baccarat occurred, but it smells, tastes and looks like reverse engineering to overcome obstacles to greater profitability. Sands China Limited (SCL) introduced a game recently in Macau they call Fast Action Baccarat. It has 28 betting positions and can accommodate up to 60 standing players. In Macau, SCL offers four of these tables close together, and this area was the frenetic and fun betting scene that Jason Ader witnessed and described in the opening paragraph of this article. As with the stadium LT Game baccarat games, SCL kept the one-livedealer concept with the action displayed on multiple overhead screens to promote the game to players and onlookers alike. But, with Fast Action Baccarat, the player is still betting real chips at a table close to where the dealer is turning the cards and determining the outcome of the game, albeit a much larger one. At each player position, the player can make a bet on Player, Banker, Tie or Pair. To increase the game speed to get to the target minimum bet SCL wanted to offer, they put the dealer float on rails so the dealer could be quickly moved from position to position down the long row of players. Further, notices automatically appear at each betting position to avoid late betting but also to “train” the players to bet at the pace set by SCL. Winning positions are lit from underneath, and oversize cards are utilized so everyone can see the cards more clearly—both steps to avoid player disputes that otherwise slow the game down. But, perhaps the most clever aspect of this game is that the space under the betting areas falls open if they lose, and the chips drop to a conveyor that whisks them to an automatic chip sorter and stacker such as used in roulette. In combination, this allows minimum bets in the $12 range (or $100 in Hong Kong or Macau currency), a target that makes a live baccarat game affordable and fun to a much broader range of players, just like the LT Game stadium approach was able to do via terminals. An added benefit for SCL is that one Fast Action Baccarat table counts as one table, a critical factor because the government of Macau has announced policies that limit the maximum number of tables it will allow to be operated in the SAR at any one time. The more betting positions per table, the more capacity a concessionaire can create within a given table limit.

Lessons Learned. Lessons Applied. Clearly, the rest of the world is not Macau, but it is just as clear that you do not have to be Asian to enjoy baccarat. The morphing of baccarat has made it more available and appealing to a wider range of target market segments as well as more profitable for the casinos in almost every venue. Creative minds coupled with the technology will continue to provide the next solution to the last challenge to broaden game appeal and improve efficiency. It is, indeed, a great time for thinkers and doers in the gaming industry.

112 Global Gaming Business SEPTEMBER 2013

LT Game baccarat terminal

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WORLD CLASS

CUSTOMER

SERVICE TABLE GAME

INNOVATIVE

SOLUTIONS

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How Pennsylvania Got it Right STRATEGIES FOR THE SUCCESSFUL INTRODUCTION OF GAMING By Jennifer Day and Emily Oliver

n the post-recession economy, many states are considering new or expanded gaming operations as an additional source of tax revenue and job creation. Policy-makers must balance these two distinct and at times conflicting objectives with the nuanced interests of regional stakeholders, such as local politicians, raceway and lottery operators, and the various governmental departments that stand to benefit from the allocation of gaming tax revenue. Making this complex issue more difficult to address is the penchant for states to change goals and effective tax rates over time. This creates uncertainty and risk, and can lead to major casino operators passing on developments where the tax system is considered unstable. One state that has successfully and efficiently met this challenge is the commonwealth of Pennsylvania. After legalizing slots in 2004, Pennsylvania’s gaming industry experienced eight years of consecutive growth. The state includes 12 gaming facilities that generated over $3.1 billion in both slot and table game revenues in 2012 and account for $1.4 billion in tax proceeds to the state. Through deliberate planning and informed decision-making, Pennsylvania met its goals of maximizing gaming tax revenue, supporting its racetracks, and stimulating development and employment. As the number of states with legal gaming grows, including those now considering online, so does the variety of existing licensing and tax structures. While each state has its own unique needs, an analysis of how Pennsylvania got it right can provide valuable insights for legislators in other states. The Keystone State did not realize its annual $3 billion-plus gaming market by chance. Here’s how they got it done.

$4.4 billion in net revenue that could be taxed by surrounding jurisdictions. The commonwealth determined that in order to provide tangible property tax relief to Pennsylvania homeowners, they would ideally need to generate $1 billion in annual gaming tax revenue. The legislature engaged in a study to determine the locations and tax rates necessary to reach this figure. Christopher Craig, current general counsel to the Pennsylvania Treasury and former counsel to the state Senate Democratic Appropriations Committee, observed, “While political support determined most of the locations of licenses, it was the in-depth study that showed legislators where best to locate the remainder and determine the proper size for the casinos for the state to realize the $1 billion in tax relief it had promised from the program. We had the guidance to establish a feasible tax rate, allowing facilities to flourish in the long run while providing immediate taxpayer relief. At the time there was a lot of skepticism as to the projection, but the naysayers were wrong. The estimates proved correct.”

Harrington

$110,807,400

1,339

$227.30

Atlantic City

$3,258,239,958

37,760

$236.41

GOALS FOR GAMING

Total

$4,419,015,113

50,389

$240.27

Lawmakers considering gaming all tend to focus on economic growth, revenues, jobs, increasing revenues for the state and facilitating economic growth while meeting the needs of influential stakeholder groups. In Pennsylvania these overarching objectives manifested themselves as three specific goals. 1) Generate $1 billion in tax revenues to offset property tax burden: The primary impetus behind Pennsylvania’s 2004 Race Horse Development and Gaming Act was to reduce the property tax burden in the state. Under pressure to reduce the property tax rate, Pennsylvania legislators began to move toward gaming as an alternate revenue source in the early 2000s. Policy-makers identified that Pennsylvanians were actually generating significant tax revenues through gambling, but revenues were going to the neighboring states of New Jersey, West Virginia and Delaware, where Pennsylvania residents were contributing to over 114 Global Gaming Business SEPTEMBER 2013

2003 Regional Competition for Pennsylvania Charles Town

Machine Revenues

Machines Win per machine

$220,985,043

2,700

$224.24

Delaware Park

$268,209,000

2,000

$367.41

Dover Downs

$186,893,500

2,000

$256.02

Source: Delaware Lottery Games, West Virginia Lottery, New Jersey Division of Gaming Enforcement, The Innovation Group

2) Bring a revenue base to the racetracks: A secondary motivation behind Pennsylvania’s gaming legislation was to bring a revenue base to the states’ racetracks. Pennsylvania racetracks were losing revenue and horses to out-of-state competitors where slot machine revenue subsidized purses, making it increasingly difficult for Pennsylvania tracks to compete. 3) Incentivize development and job growth: Tangential to the first two goals was the desire to stimulate the economy and create jobs.

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DETAILS, DETAILS

Statewide Machine Revenues: 2003 Report vs. 2010 Actuals

In designing the Pennsylvania Gaming Act, legislators took 2006 Proj. 2010 Difference Difference % a rational approach to meeting their primary goals. In PARX $307,763,421 $382,978,796* $75,215,375 24.4% 2003, the Senate Democratic Appropriations Committee Chester $233,514,145 $287,176,968* $53,662,823 23.0% commissioned a comprehensive gaming market analysis for SugarHouse $656,058,607 $166,416,527* -$489,642,080 -74.6% the state, requiring: Seven of the state’s 12 licenses will be Philadelphia assigned to racetrack locations, six of which had been preArea Subtotal $1,197,336,173 $836,572,290* -$360,763,883 -30.1% determined. Of the five additional licenses (non-racino), Penn National $182,214,268 $253,403,976 $71,189,708 39.1% two will be assigned to Philadelphia and one to Pittsburgh. Mohegan @ Pocono $90,151,538 $224,762,570 $134,611,032 149.3% Given these parameters, the legislature needed to know Mt Airy $92,715,175 $143,811,645 $51,096,470 55.1% three things—the most advantageous locations for the reBethSands $241,797,391 $258,735,860 $16,938,469 7.0% maining three licenses, the maximally profitable size for all Eastern Region 12 facilities, and the tax rate needed to generate $1 billion Subtotal $1,804,214,545 $1,717,286,341 -$86,928,204 -4.8% in property tax relief. The Meadows $153,329,630 $249,131,455* $95,801,825 62.5% The consultant team considered and analyzed multiple The Rivers $369,184,791 $274,128,075* -$95,056,716 -25.7% development scenarios, several of which brought in nearly Pittsburgh $1 billion in annual tax revenues assuming approximately Area Subtotal $522,514,421 $523,259,530 $745,109 0.1% 30,000 machines and a 34 percent tax rate. In terms of the Presque Isle $113,790,574 $170,387,248 $56,596,674 49.7% locations, it was recommended that of the additional three Western Region licenses, two be assigned to the Poconos region with the Subtotal $636,304,995 $693,646,778 $57,341,783 9.0% final license located near the Maryland-Pennsylvania borTotal $2,440,519,540 $2,410,933,119 ($29,586,421) -1.2% der. This scenario had largely manifested itself by 2010 with one major exception; two of the 12 licenses in the Source: Pennsylvania Gaming Control Board; Innovation Group. *Note: Annualized based on most recent above scenario have not been awarded, and therefore are performance (Jan-April) not generating revenue. The legislature embraced the 34 percent tax rate as the base rate necessary to raise $1 billion annually in tax rate relief. Additionally, Pennsylvania policy-makers allocated an additional and table games, opening the first of the four current facilities in May 2012. 12 percent of gaming revenues to the horse-race industry. While Pennsylvania’s decision to locate casinos along state borders to enWhile not the highest percentage share of slot revenues assigned to the horse courage in-state gaming was rational, it also left Pennsylvania facilities vulnerable industry from the racino/casino gaming business sector, the projected absolute to out-of-state competition close to the border. As other states expand gaming dollar amount ranked first in the country. Revenues distributed to local governoperations, new casinos could pull from the existing Pennsylvania markets, espements and the Race Horse Development Fund brought the effective tax rate to 55 cially among non-Pennsylvania residents of those states. Beyond staying competpercent. At the time, this was the highest effective gaming tax rate of any state. Alitive, job creation became a compelling goal in reaction to the recession. though these slots-only facilities proved to be highly successful, observers have As Christopher Craig noted, “It was necessary to convince state legislators noted that they were relatively lacking in amenities compared to facilities in that once on board with the program, they would be the single greatest stakeneighboring states with lower tax rates. This provides a clear example that when holder in the gaming industry, and the onus was on them to stay involved and effective tax rates reach these levels, amenities will be sacrificed to obtain a positive to provide the industry with all the tools it needed to compete in order to proreturn on investment. tect this critical state revenue stream.” This they did. Despite the lack of a second Philadelphia facility and the economic downturn, gaming revenues were similar to what had been projected (excluding the EXPANDING ECONOMIC IMPACT final, unassigned license), as indicated in the table above. Pennsylvania’s eastern In January 2010, Pennsylvania updated the Race Horse Development and Gammarket had seven facilities in operation in 2010, forming a veritable barrier to ing Act to permit the sale of table game licenses. The impetus behind this Atlantic City and Delaware, particularly in the Philadelphia area submarket. Even change was twofold: First, policy-makers wanted to increase the attractiveness of without the second Philadelphia license, the Philadelphia area facilities were on the existing facilities to remain viable in an expanding competitive market. Seccourse to generate over $836 million through slot revenues alone in 2010. ond, the addition of table games would spur job growth. Both of these goals reThe western market, including the Pittsburgh sub-area, was performing quired that the operators retain a significant portion of the revenues generated slightly better than anticipated, with its three facilities generating annualized slotby the table games. only revenues of nearly $700 million. The impact of these new facilities on the Labor-intensive table game operations provided the impetus for expanding neighboring competition was apparent, with revenues in New Jersey declining by facilities or adding job-creating amenities such as hotels and entertainment ven$1.6 billion and West Virginia experiencing a 1.6 percent average annual rate of ues which in turn draw table game players. These amenities, coupled with the decline between 2006 and 2010. draw of the games themselves, can lead to a significant increase in visitation, revAlthough performing well, Pennsylvania was facing an increasingly dynamic enues, and the overall economic footprint of the facility. Because table games are competitive environment. In 2008, Maryland legalized video lottery terminals at 10 times more labor-intensive than slots, operating costs are very high, and if five facilities. The first facility opened in Perryville—just 26 miles from the Penntaxed excessively, table games become a drain on an operator’s budgets and can sylvania border—in late 2010. Ohio followed suit in 2009, legalizing both slots SEPTEMBER 2013 www.ggbmagazine.com 115

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lead to a decline in services, quality and net revenues. As such, the legislature made the contentious but astute decision to tax table game revenues at a significantly lower rate than slot revenues. Although facing pressure from the horse-racing industry to place an additional tax on table game revenues to further subsidize the racetrack and equine industries, legislators settled on a relatively low rate in which the majority of gaming tax revenues went to the Pennsylvania Budget General Fund. As indicated in the pie chart below, gaming facility operators in the state retain 86 percent of their table game revenue— nearly double the share they retain for slots. Pennsylvania’s bifurcated tax rate reflects the state’s specific goals and the policy-makers’ understanding of the gaming industry. The high tax rate placed on slot revenues is balanced by the relatively low tax rate applied to table game revenues. Pennsylvania Senator Tim Solobay observed, “The decision to add table games came during the Great Recession when Pennsylvania, like many other states, was suffering from high unemployment. It was largely the study done on behalf of the operators that convinced legislators that by allowing table games we could create critically needed jobs and would help protect our existing casinos from external competition. Once again the estimates made in the study have been met and nearly 10,000 Pennsylvanians have benefited accordingly.” Tax rates in Pennsylvania have been stable. This consistency has allowed Pennsylvania to aggressively generate tax revenue while providing a predictable tax rate for investors. Although higher than some states, a stable rate encourages investors by removing uncertainty. The oft-cited case study of Illinois, which altered its tax rates three times between 2002 and 2005, shows the lasting negative impact that tax shifts can have on the economic footprint of the gaming industry.

enue in 2012 reached over $3.1 billion, generating $1.4 billion in gaming taxes. Of that total gaming revenue, $2.4 billion was generated by slot machines, providing Pennsylvanians with $840 million in property tax relief. Although shy of the original goal of $1 billion, this goal is expected to be met as the remaining facilities open across the state. Currently, 12 of the 14 designated licenses have been granted. Of the two remaining licenses, six applications are being reviewed for the second Philadelphia license and the remaining non-resort license has yet to be determined. Although the Pennsylvania Gaming Control Board hopes to award the Philadelphia license in 2014, there has been some opposition to the project. In July 2013, a group of investors in the Sugarhouse casino brought suit against the Pennsylvania Gaming Control Board challenging the ability of the board to re-issue the Philadelphia license. The original license was revoked in 2010, after the Foxwoods Development Company failed to secure financing by the deadline. In addition to generating funds for property tax relief, gaming activities generated $7.6 billion for the Race Horse Development Fund from November 2006 to December 2012. This revenue has been used to increase purses, improve facilities and further incentivize the horse racing industry across the state, making Pennsylvania a leading state in the horse racing industry. Total purses paid have steadily increased in the last five years from $177.9 million in 2008 to over $218 million in 2012, making racing more competitive and exciting. Although the primary goal of introducing gaming to Pennsylvania was the generation of tax revenue, the industry has also spurred economic development and the creation of jobs. According to the AGA’s 2013 annual report, in 2012 casinos paid employees $339.77 million (including tips and benefits), while employing 10,162 people across the state. Pennsylvania casinos also generate additional spending on local goods and services, local taxes and charitable contributions. Since entering the market, Pennsylvania has seen gaming revenues grow even as other states have seen dwindling numbers. Delaware, New Jersey and West Virginia all saw revenues decline throughout the past several years, with New Jersey also forced to deal with the impacts of Hurricane Sandy.

Gaming Revenue 2011-2012

At least one state has followed Pennsylvania’s lead in terms of gaming tax policy. Maryland implemented an effective tax rate of 67 percent on slot revenues in 2008, but the legislation that legalized table games in 2012 applies a tax rate of 20 percent. However, the fact that these rates were higher resulted in less than desirable facilities and long delays in implementation. As Pennsylvania was introducing table games, it also restructured the funds being allocated to the Race Horse Development Fund. As noted, the percentage of slot revenues committed to the horse racing industry is not the highest in the country; however, the absolute figures are quite substantial. Due to the success of the fund, in January 2010, 34 percent of the Pennsylvania Race Horse Development Fund was allocated outside of the racing industry and put in the General Fund.

GAMING IN PENNSYLVANIA TODAY Pennsylvania has nearly met the original goals set for the establishment and eventual expansion of gaming by using a rational approach to set gaming tax rates and determine the proper number and location of gaming licenses. Total gaming rev-

116 Global Gaming Business SEPTEMBER 2013

Delaware Maryland New Jersey New York Ohio Pennsylvania West Virginia

2011 $552.37 million $155.71 million $3.32 billion $1.26 billion N/A $3.02 billion $958.7 million

2012 $526.67 million $377.81 million $3.05 billion $1.8 billion $429.83 million $3.16 billion $948.81 million

Change -4.7% 142.6% -8.0% 43.1% N/A 4.6% -1.0%

Source: Gaming Revenue Boards, The Innovation Group

Nearby states are likely to continue to expand gaming activities, and Pennsylvania will need to continue to reassess goals and strategy along the way. The landscape continues to change; i-gaming is being explored by Pennsylvania and is already legalized in the nearby states of New Jersey and Delaware. As Pennsylvania potentially moves into this channel, it can benefit by taking the same rational and intentional approach it has taken in the past. By doing so it will help protect its existing markets, develop expertise, drive customers from online offerings to land based casinos in the state, generate an additional revenue stream, and develop the skills necessary to compete nationally should that day come. In a broader sense legislators in Pennsylvania (and indeed any state) should continue to view themselves as the primary stakeholders in the industry and should constantly be seeking ways to expand and protect this revenue stream.

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Back to Basics: Social Marketing 101 Forget about the finer points of social media marketing; some of the biggest casino companies haven’t mastered the fundamentals. By Marjorie Preston

ne of the most successful commercial promotions of all time was AT&T’s memorable “Reach Out and Touch Someone” campaign of the 1980s. With five simple words and the image of a sweet-faced mom sitting all alone, the phone company yanked at the heartstrings of American consumers and guilted them into making more long-distance calls. In this era of lightning-fast digital communications, it’s possible to reach out and touch everyone—family and friends, colleagues and customers—instantaneously, collectively and continuously. But in business, constant contact is only a means to an end; unless it adds to profitability, it is wasted motion, a squander of human capital and operational costs. Rick Campbell, former casino executive and marketing director for the CMS Group in Las Vegas, says the gaming industry in many instances has failed to exploit the profit-making potential of digital and social media marketing. Even big companies with seemingly limitless resources can be found spinning their wheels in ongoing but fruitless online chatter, using a shotgun approach instead of funneling offers and other communications to the most receptive customers, and delivering a monologue when they should be engaged in a dialogue. They are counting their Facebook “likes” without turning these “friends” into customers— loyal, paying, repeat customers. “When you think of the intersection between players club systems and social media, we should be a lot more advanced by now,” says Campbell. “It’s not that hard.”

Know Your Customer It’s the simplest rule; maybe that’s why it’s so easily overlooked. Campbell recently consulted with a team of casino marketers who were jubilant because their property had accumulated 4,000 Facebook followers. The elation faded fast when Campbell started to poke at the results. “Out of those 4,000 followers,” he asked, “how many are your players? Do they have player cards? Do they live close by? How many are even in the U.S.? “Well, they just sat there with their mouths open—they couldn’t answer any of those questions,” says Campbell. “It floored me because there’s so much information about players that’s right at your fingertips. All you have to do is open your hand and grab it. But even now a lot of casinos are not doing that.” As basketball coach John Wooden might have said, those team members were mistaking activity for achievement. Sure, they were putting out the information and getting a healthy response, at least in terms of quantity. With a little more legwork, they could have cross-referenced those online thumbs-ups against their 118 Global Gaming Business SEPTEMBER 2013

player tracking system, found out who among the 4,000 were actual customers, and then filled in the blanks about each and every viable “like”—who was a local, who was a regular, who liked to play poker, who stayed regularly at the hotel. “By filling in all those informational pieces, the casino knows that Bob Jones likes bass fishing, slot machines and Andrew Dice Clay. When he comes to Vegas they can send him an invite to the comedy club instead of shooting it out to the entire database, where half the people might not even like comedy,” says Campbell. “They can provide better service and a better experience.” They can also avoid annoying customers who hate Andrew Dice Clay. It’s not an insignificant benefit; repeatedly sending the wrong message can erode the impact of all of your messaging. As Campbell says, “If I like groups from the ’50s and ’60s, please don’t send me tickets for Rascal Flatts.” He recounts several instances in which freebie casino concert tickets ending up being sold on Craigslist or simply passed on to the first willing taker. “I saw one of the big players at the slot machines while the concert was going on. She had given the tickets to her next-door neighbors, who weren’t players at all.” Hence, those comps were truly on the house, with no return at all for the properties. By ferreting out meaningless “likes,” marketers also will learn if their outreach is effective; if it’s not, they can change it up accordingly. While a percentage of players will always resist giving up their birthdates, cell phone numbers and other personal minutiae for a casino database, it’s important to persist, says Campbell. “When marketing departments and player reps get shot down often enough, they just stop asking. Smile and take the extra steps. ‘What’s your email address, Mr. Jones? Can I get your user name on Facebook?’ There are a lot of Bob Joneses out there; you want to make sure you’re reaching the right one.”

Right Words, Right Time Digital technology and the speed of the internet have enabled companies to connect with their customers immediately, make a pitch on the basis of known preferences, and invite responses in real time. (There’s a reason they call it interactive.) Yet some casino companies are “still trying to use their social media channel as an advertising tool,” says Campbell. “When they say, ‘Hey, we’re having a concert,’ or ‘We’re going to give away a new car,’ that’s not opening a line of communication. They should be asking, ‘What would you do with a brand new BMW?’ or ‘Hey, for the next two hours I’m offering Alan Jackson tickets, buy one, get one free. Who’s up

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There’s so much information about players that’s right at your fingertips. All you have to do is open your hand and grab it. But even now a lot of casinos are not doing that.

”

—Rick Campbell Marketing Director, CMS Group

for that?’” In short, it is now possible to turn every communication into a conversation. Never forget there’s another party on the line. Once you know who you’re talking to, find out when they’re listening. In general, Campbell says, Facebook users are most active between 1 p.m. and 4 p.m., spiking at 3 p.m., and Twitter users are both early birds and night owls. According to Union Metrics, the best day to post to Tumblr is Sunday from 5 p.m. to 1 a.m. But generalizations are dangerous; when experts differ about the prime time for online engagement—and they do—it’s important to look at your own performance metrics. “You’re only looking for your followers,” says Campbell. “You need to find out when they’re going to be reading through posts and checking accounts and being online.” Social media dashboard programs—HootSuite is among the most popular—allow companies to find out when their patrons are jumping online, reading through posts, checking multiple accounts and making plans for the weekend; dashboards also make it simple to optimize online posts so they pop up when the most customers are viewing.

Bring ’Em Back Alive Suppose they’re not viewing at all. If your email blasts have a low open rate, “then you can start segmenting your list by who is not responding to your emails,” says Mariana Mechoso Safer, senior vice president of marketing at HeBS Digital, an internet marketing and strategy consulting firm in Las Vegas. “Any company that provides email marketing services should be able to tell who is opening the emails, what they’re clicking on, and if they’re booking.” If they’re not, take action. “For one client, we recommended a re-engagement campaign for customers that hadn’t opened an email in a period of, say, three months,” says Safer. “We suggested sending them a very targeted offer saying, ‘Hey, we’re still here and we have this special promotion just for you.’ To get them to re-engage, you have to make it something really special and exciting.” Also be aware that you can communicate too much. Just as misdirected offers can turn off your customers, so can an avalanche of emails or text messages. When you are omnipresent, you can become invisible. “If it’s a general email, we don’t recommend sending out more than two a month,” says Safer. “But if you’re more targeted with the message and the email is something the consumer is interested in, then hit them up once a week or even more—for instance, if you want to send a text message about a

last-minute deal at the restaurants. Especially for casinos, send it to your locals, not someone who is a fly-in. But I think daily is way too much.”

One Size Doesn’t Fit All The use of smart phones and tablets has exploded in recent years. According to data from the Pew Internet Research project, released in June, 56 percent of Americans over the age of 18 now own a smart phone, and about 30 percent of adults in the U.S. own a tablet, up from just 3 percent in 2010. Yet some of the biggest casino companies in the world haven’t developed truly user-friendly mobile websites, says Nancy Smith, CEO of Masterminds, an advertising agency in New Jersey. SEPTEMBER 2013 www.ggbmagazine.com 119

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Known, qualified players are getting their marketing info on the go, through text messaging, mobile apps and from mobile websites; the number of people transacting their business on their phone is increasing by double digits every month practically. Yet I’m shocked at the number of casinos that don’t have mobile-friendly websites. —Nancy Smith

”

“From a digital touch point perspective, mobile is becoming more important with every passing day,” she says. “Known, qualified players are getting their marketing info on the go, through text messaging, mobile apps and from mobile websites; the number of people transacting their business on their phone is increasing by double digits every month practically. Yet I’m shocked at the number of casinos that don’t have mobile-friendly websites. And I don’t mean a website that just sizes down to the size of a phone, where you can’t read anything or do any business.” She cites the Cosmopolitan in Las Vegas and Revel in Atlantic City as casinos with effective mobile websites. The resorts did not just squeeze their regular sites onto smaller screens, but wholly reconfigured them for simplicity and ease of use. Because those properties opened in 2010 and 2012 respectively, they probably had nothing to unlearn in terms of technology. “Ninety percent of the other (casino websites),” says Smith, “are just exercises in frustration.” Especially if they’re slow on the uptake. According to a 2012 New York Times report, web users have such a need for speed they will balk at waiting even four-tenths of a second for a mobile site to load—“literally the blink of an eye.” And if your website is slower than your competitor’s by more than a quarter of a second, at least some of your customers will patronize the competitor.

Moving Targets The utility of a mobile website is critical, particularly for users who are checking in on their devices while in transit. “Eighty-five percent of hotel reservations—and this includes casino hotels— are made for the same night or the following night, or are extending a stay,” says Safer. “You want to cater to the fact that they’re on the go and accommodate for the touch-screen nature of the mobile device.” If a customer has a strong interest in a property or inherent loyalty, how long will they work with a troublesome mobile site? “There’s no shared data on that other than what we can see in terms of low conversions and high bounce rates,” says Safer. “Take Marriott, for instance; they have a 22 million-page desktop website. What would it be like if all they did was just shrink that website to the iPhone screen? Think about how difficult it would be to find that specific property or phone number or map or the things that people really need to find on a mobile device. We put ourselves in the consumer’s place and ask what we would do if we were served with that type of experience.” Tablets are another matter, and should offer “the same amount of content a desktop website has,” with touch-screen navigation, handy swiping capabilities and pleasing visuals. The Retina screen of the iPad means photos can be “very stunning in terms of color and high resolution,” Safer says. But never trade functionality for pretty pictures. Of course, brand messaging on all sites should be cohesive and complementary. “Google data shows a really high percentage of people that will use all three devices—desktop, mobile and tablet—in one day to achieve one goal,” Safer says. “The Google study said that in terms of planning a trip, 47 percent of people 120 Global Gaming Business SEPTEMBER 2013

CEO, Masterminds

surveyed started on their mobile phone, 45 percent then continued on a PC, and then 3 percent continued on a tablet.”

Listen and Learn Pinnacle Entertainment’s loyalty program is one example of how casino companies can successfully engage with their customers both in person and online in a way that strengthens both modes of customer contact. In a 2012 fourth-quarter earnings call, Pinnacle’s Chief Marketing Officer Ginny Shanks spoke of “reinforcing the emotional benefits” of the myChoice program by making senior leadership at the company’s seven casinos immediately accessible to preferred customers. Along with myConnection, a “mobile VIP concierge,” myChoice enables members to chat directly with their hosts and casino general managers; amazingly, Owner’s Club members even have a direct line to Pinnacle CEO Anthony Sanfilippo. That extraordinary access is backed up by fun, ongoing online interaction that invites participation. When the Stadium Sports Bar & Grill opened at the Belterra Casino Resort in Florence, Indiana in May, customers were treated to luscious images and video of the culinary team creating a banquet of desserts; they were then asked to vote on their favorites. Concerts and other entertainment are teased online before the show is officially announced; quizzes and contests keep fans on the alert and entertained. In an innovative blend of traditional media with handheld devices, Pinnacle now produces print ads, direct mail pieces and brochures that interact with smart phones. The technology “brings the document to life, so to speak, brings more information on the product, gives you some video or interactive questions, and even gives gaming tips—if you’re new to blackjack, it will walk you through some basic gaming strategy,” says Matt Ryan, Pinnacle’s vice president of relationship marketing. “It’s a different way to engage—a print ad is not a static piece of paper anymore.” Perhaps most importantly, the company faithfully gathers data on its patrons during every interaction: through emails and phone conversations between customers and the host team, by monitoring customer preferences on-property, and by interacting with customers online. The rewards are always appropriate. “If they continually go to the steakhouse, we comp the steakhouse,” says Ryan. “If they go to concerts of a certain genre, we get to understand that as well and make sure we’re meeting their wants and needs. “The more we can do to make offers and events and entertainment strategy unique and personalized, that’s extremely important.” Nancy Smith hails the thoroughness of Pinnacle’s approach, and says other companies would do well to follow suit. “There’s no bigger marketing challenge for the future than to be sure people can transact business, access all information and get the customer service they want” on their digital device of choice, Smith says. For now, she adds, “Most casinos are still truly behind the times.”

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Coupon Queens How slot machines entice players by offering individual bonuses

Bally iVIEW with Elite bonusing

By Dave Bontempo ring on the razzle dazzle. Slot machines have become full-fledged play stations. Floorwide tournaments, instant rewards, drink orders, restaurant reservations and show-ticket information emanate from the fabled “one-arm bandits.” Heck, you can even gamble on them. Manufacturers and industry suppliers race to embrace the expanded machine. They enhance the star performer in gaming’s multibillion-dollar lineup with a new level of customer involvement. Say hello to the virtual thrill. It’s the result of screaming fans rooting home the simulated winner of a horse race or NASCAR event, for which they qualified by hitting a wagering tier. They can participate in this interlude and quickly resume gambling. Casinos that use machines to pitch products, and also improve their capacity to reward players. That makes sense. Gamblers know they are being cajoled to stay on games, but if that produces an appropriate reward like an invitation-only event among peers, it has value. Manufacturing heavyweights Bally Technologies and Konami Gaming offer new products for this climate. TransAct Technologies and FutureLogic have rolled out enhanced printing options that work with casino promotions. And Leap Forward Gaming devised a system to make more than a million older machines compatible with new industry enhancements. Its message: upgrade rather than buy new. Each outfit found its own corner of this fast-growing, lucrative market.

Bally’s Elite Solution Las Vegas-based Bally Technologies began using the game screen for multiple purposes about five years ago. It introduced iVIEW and then iVIEW Display Manager, allowing part or all of the screen to be changed into coupon offerings, show tickets, points assessments and bonuses. Then came the fun. Elite Bonusing Suite, a set of applications that work well on the iVIEW screen, took player participation to a new level. “A lot of our competition can take over part of the screen and use the displays,” says Tom Doyle, vice president of product management for Bally Tech122 Global Gaming Business SEPTEMBER 2013

nologies, “but we can provide, with the Elite Bonusing Suite, marketing events that really drive revenues. I think that’s helping us close a lot of deals.” Bonus Tournaments is the latest innovation under EBS. It’s the capacity for a self-administered tournament, right at the site of the slot machine. No fuss, no muss, no attendant. The rollout began several months ago. “Some of the casinos wanted on-demand type tournaments, in which you didn’t have to have an attendant there to do it,” Doyle says. “If you are playing for a long time at a casino, all of a sudden after 200 wagers, for example, you can get involved in a tournament right now. It has proven to be quite popular. You can do this without anybody having to manage the tournament.” Another feature within EBS is the Flex Rewards program, an excellent defensive measure. It targets customers who have lost money more quickly than a property expected. “Let’s say normally you put $500 in the machine and it holds 8 percent, so that win should be $40 for the casino,” Doyle says. “But you come across an

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“Typically, this information would be right above or below the game monitor. Now it’s right there. So if you want to offer bonusing games, any birthday wishes, concert information, etc., that can be communicated right in front of the player’s eyes.” —Michael Ratner, Director of Product Management-Systems, Konami Gaming

unlucky customer who put $500 in and lost $200. Now that person is upset and disappointed and may actually leave the casino.” Time for an automated, financial back-rub? “With Flex Rewards, you can suddenly trigger a promo event, like a pumpkin, or a treasure chest, or $50 in free play,” he says. “You are actually rewarding that player at the point of dissatisfaction.” The operator starts by determining an acceptable bonus formula. After that, the implementation is easy, and the bonuses are automatic. Flex Rewards is especially useful in high-limit rooms where thousands of dollars can be won or lost in a short time. By taking some of the pain away from top players by way of a targeted bonus, the operator can solidify or at least retain player loyalty. Flex Rewards enables casinos to create rules for targeting bonuses according to club-level, real-time wagering habits. Bonuses can be automatically transferred to players’ CMS accounts and notifications can be placed on iVIEW or iVIEW DM.

Konami: in Synk Konami Gaming continues to roll with its Synkros system, unveiled at G2E 2012 as the rebranding of the Konami Casino Management System (KCMS.) Its areas includes table games, marketing, player tracking, the cage, and of course, slots. The company is about to double the size of its Las Vegas office. Konami has systems installations in 200 worldwide locations, and one of its next Synkros installs will occur in Downtown Las Vegas in the next couple of months, according to Michael Ratner, director of product management-systems. Synkros is a marketing powerhouse, Ratner says. Floor-wide bonus games, real-time messaging and true-time windowing technology have become operational with it. A driving force for Synkros in the slot realm is the Synk Box, located inside the machines and connected to the servers. It enables the downloading of one-to-one bonus games and one-to-many floor-wide bonus games, Ratner indicates. The box also allows for player tracking streaming video, which supports four channels of live streaming, synchronized, across the floor. The overall Synkros package creates a new visual experience for the slot player, starting literally with his viewpoint of the machine. “Operators are starting to take advantage of the true-time windowing technology,” Ratner says. “The player now has all the information directly on the

screen right in front of him. He does not have to go up or down to a second display to get the information. His eyes are already on the game and you are putting the system in the same place they are already looking. “Typically, this information would be right above or below the game monitor,” says Ratner. “Now it’s right there. So if you want to offer bonusing games, any birthday wishes, concert information, etc., that can be communicated right in front of the player’s eyes.” The innovation not only makes messages easier to spot, but to read as well. The letters are large and centered. Whatever casinos wish to communicate to players can now be done more easily. The restaurant reservation. The bus that leaves in 20 minutes. Or the consolation prize. “It is all well and good that you know Bob Smith, for example, has bet $500 in the last hour,” Ratner says. “Now you want, as a reward for that time, to give him $10, but if you try to do it after his (reward or loyalty) card has been pulled out, it’s too late. With Synkros, you can send him a message in real time. The money can be entered right into his account.” Full-screen vision also enhances the floor-wide bonusing system, one of the newer assets of Synkros. Patrons can select stock car and air races, adventures or lucky numbers as part of their reward for play. Synkros is multi-dimensional. Its mobile app feature, for example, provides casinos an instant snapshot about what games are doing well. This produces information that ultimately finds its way into targeted messages for customers on the full screen. Synkros also has a component designed to serve table games and provide marketing information.

Leap Forward: Big Move Leap Forward Gaming has been true to its name. The Reno, Nevada-based company made recent major installation breakthroughs in Macau and the U.S. with its SaffariNet Patron Display Interface (PDI) picture-in-picture multimedia ecosystem technology. It most recently gained an install at the Wynn, a Wynn Resorts Limited property. Ali Saffari, the company’s founder and CEO, says the immediate market for this product is about 1.2 million machines. Many of them are several years old, but can be upgraded to wireless and picture-in-picture capability. That can offer a major financial savings to operators, he says. “In this economy, nobody can afford to replace all their machines,” Saffari maintains. “The average cost may be $15,000-$16,000 for one machine, but in some cases you can go up to $22,000. By having our PDI technology, these machines can still be quite useful to the operator, for SEPTEMBER 2013 www.ggbmagazine.com 123

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Leap Forward Gaming

a fraction of the cost of purchasing new machines. Our technology works with everybody—IGT, Bally Technologies, Aristocrat, etc. “We are Switzerland,” he adds, laughing. Well, Switzerland is on a roll. The latest Eilers-Fantini quarterly slot report denoted a surge for the company between the first and second quarter of 2013. It soared to second place behind Bally Technologies among casinos that soon plan to use picture-in-picture technology. Leap Forward’s expected market penetration grew from 2,000 machines to more than 17,000. “And we’re just getting started,” Saffari says. The PDI system utilizes a small controller box inside the machine and a wireless candle on top of the machine. It is coordinated with a software system that connects to the back of the house, allowing operator flexibility. “They have all the agility they want,” Saffari maintains. “They can change the campaign, the bonusing, the marketing, the multimedia aspects, whatever they want, immediately, for their entire floor.” “The goal is to provide a benefit for everybody. The operator wants to increase the drop and also wants the captive audience of the player sitting at the machine (looking at offers, for example). The player wants to have all his desires fulfilled, whether it’s sports wagering, reviewing property amenities, getting a free buffet if he just played $400, etc. We have more than 30 features and capabilities for couponing for our customers.” PDI is a robust, completely customizable system utilizing existing machine displays, and supports all screen sizes, resolutions and aspect ratios by utilizing the latest advancements in web-based technology. It offers targeted marketing and bonusing campaigns, progressives, drink ordering and straightforward integration with multiple player tracking and CRM systems. Saffari was a longtime engineering executive for IGT, participating in numerous innovations including ticket-in/ticket out and Megajackpots, before launching Leap Forward in 2010.

Future Logic: Rolling with PromoNet FutureLogic’s PromoNet ties into the magic-at-the-machine process. Its couponing solution debuted at G2E in 2011 and has gained installs around the world in the last couple of years. As the excitement of instant rewards increases, so presumably will the demand for coupons to print them. The Glendale, California, company’s four-year development of PromoNet expands its gaming impact. Already known for exceptional printers, FutureLogic brought an element of immediacy— coupons—to the floor. The product has two major categories. Its “bank” operation con124 Global Gaming Business SEPTEMBER 2013

cerns a group of isolated machines. The operators can arrange to have adapter boxes placed inside the games quickly, usually inside of a week. The PromoNet “campaign,” dedicated to most or all of the casino floor, allows the casino to place the product into as many machines as it wants. Another benefit occurs in the growing online area. A barcode on a coupon can enable a player to reach the casino’s website via his smart phone and then redeem rewards. This process also extends to a person’s home computer. The player can type in the barcode number and reach the same website. PromoNet works by way of a dual port inside the slot machine. One connection fits the game, the other handles promotional couponing.

TransAct: In Action It’s been quite a year for TransAct Technologies, based in Hamden, Connecticut. The company will bring a strong report card for Epicentral into G2E, with plans for continued installations. Its Epicentral couponing solution went into Northern Quest in Spokane, Washington and Wind Creek in Atmore, Alabama during the first week of April, swelling its installs to about 4,500 and counting. The company develops printers, terminals, software and other products for many industries, including gaming, food safety and hospitality. TransAct continues to combine printing and couponing effectively. It unveiled the Epic 950 printer in the mid 2000s. It was a ticket-in/ticket-out printer, but always had a secondary port, because it was designed with couponing in mind. The company then brought out Epicentral, the software system that connects to the Epic 950 and prints TITO tickets, coupons and promotional offers to players on the game. Epicentral connects with the casino server and with management systems, food and beverage, etc. “It’s very exiting now that we have a total of three properties running the system with about 4,500 games,” says Tracey Chernay, executive vice president of sales and marketing for TransAct Technologies. “There are so many ways the casinos can use Epicentral, to reward players instantly or give them tickets for future drawings. “We are live across the entire casino floor. Every game on the floor is turning out a coupon.” Every coupon is an invitation, offer, or reward. Every reward is its own form of public relations. This company, like Konami, Bally Technologies and Leap Forward Gaming, has not only pleased the operators. It has grasped the customer end of this equation.

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GLOBAL GAMING WOMEN

Happy Anniversary At two-year mark, new research serves as guide for future of GGW

By Judy Patterson Senior Vice President and Executive Director, American Gaming AssociationGGW

lobal Gaming Women (GGW) was launched during G2E two years ago, and as we approach this anniversary, it’s important that we take time to not only look at what we have accomplished, but to evaluate what we’ve learned and where we’re headed from here. Whether through education, hosting events all over the world, or creating networking and mentorship opportunities, we have certainly taken great strides in our mission to support the development and success of women in the international gaming industry. Examples of recent developments include the launch of a new program—in partnership with the University of Nevada, Las Vegas’s International Gaming Institute—to award continuing education scholarships for women in the industry. We also continue to improve online resources, such as Coffee Break, a video series showcasing female industry leaders offering insights and advice on business. This year at G2E we will launch yet another innovative tool for women to develop mentor/mentee relationships around the globe: Global Gaming Network. By the outpouring of enthusiasm for these resources, it’s clear we’re filling a need for women in the industry that was unavailable prior to GGW. The impressive participation proves that the issues facing women in our industry are common across companies, vocations and geographic borders. Women want to connect with, and learn from, each other by sharing insight, advice and best practices, and we’re providing the platforms needed to make this happen. Over the past two years, GGW has worked to raise the profile of the advancement of women within the industry, and our next phase will see our focus turn toward making it even more of a priority. The question is: How can we make the advancement of women more ingrained in the way our industry operates moving forward? First, we’ll continue to find new, pioneering ways for women in gaming to connect and grow. Second, we will strive to offer more resources, including the online and in-person offerings that

have been so popular thus far. But ultimately, true advancement opportunities must come from within companies, and there is still work to be done. This is true in gaming and across other industries. It is illustrated by the fact that, despite many inroads, shifts in the “glass ceiling” have mainly occurred at the middle management levels while highly unequal representation remains at the highest executive positions. Research by the University of Nevada, Las Vegas has shown that women hold only 24.8 percent of casino management positions and only 18.8 percent of upper management positions such as vice president, general manager and

“

industries, and the most effective model for corporate programs that promote the development and success of women in gaming. The research was informed by conversations with women throughout the global industry, including U.S., tribal and international gaming leaders; human resources professionals across the country; and vendors and suppliers associated with the industry. McClain’s comprehensive report will serve several purposes. First, it will identify the best practices currently in use by other top companies for advancing women in the workplace. Second, it will find common program elements across these practices that have proved successful. And third, it will determine what companies in our industry are already doing well and what types of things women in the industry think would be helpful. The entirety of the research is necessary to paint a complete picture of GGW’s future and provide potential action steps for GGW to pursue development of corporate programs for women in gaming. But a preliminary look shows that supporting the development of women in our industry will require the use of several initiatives in concert: career counseling, women’s affinity groups, formal mentoring and leadership training. These efforts will only be successful in concert with a commitment from the top leaders in our industry. GGW will share the full details of this research, along with recommendations for how the industry can move forward, at G2E. The results will inform all of us on these critical questions, and they’ll serve as a guide for the next phase of work for GGW as we consider how best to facilitate the advancement of women. In only two years, GGW has made outstanding progress in many of the facets critical to connecting, educating and advancing women in gaming. And we’re always striving to find new, better ways to meet our goals. This new research will provide fresh ideas and the next concrete steps in pursuit of this mission. I look forward to seeing where it takes us.

GGW is pleased and excited to announce that this year at G2E, it will be releasing the results of a project aimed at assessing the educational needs of women in the international gaming industry.

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president. Throughout the business world, women may be outpacing men in education levels, but—to cite a couple examples—only 14.3 percent of executive officers at Fortune 500 companies are women, and the proportion of women holding corporate board seats has stayed stagnant at 16.6 percent for three years. Fortunately, there are models of how women’s advancement can be accomplished and how it can be done well. GGW is pleased and excited to announce that this year at G2E, it will be releasing the results of a project aimed at assessing the educational needs of women in the international gaming industry. The researchbased assessment was compiled by McClain Resources, a Nevada-based human resources firm. McClain’s research explores, specifically, the educational needs of female gaming professionals, current best practices within the gaming industry, current best practices within other

126 Global Gaming Business SEPTEMBER 2013

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INFORMATION TECHNOLOGY

Best Practices for IT Optimizing IT service and support in the gaming industry

ow’s your internet service been lately? If you’re like most people, you have a love-hate relationship with your internet service provider. If your internet doesn’t work, you expect a quick, polite, predictable and repeatable experience when you call for support, but you don’t always get it. Sometimes you get an immediate answer, and sometimes it takes days to resolve a seemingly simple issue. In the same way, the technology users in your gaming business expect consistent, professional support from IT whenever questions or problems arise. Yet, many IT managers are at a loss as to how to optimize the services they provide, and their internal clients put up with the headaches. That’s where ITIL comes in. ITIL, the Information Technology Infrastructure Library, is a set of best practices for IT service management that focuses on aligning IT services with the strategic needs of the business. It helps the IT manager provide superior services in a standardized, predictable and repeatable way. At Seven Wonders Learning, we help clients learn the ITIL framework and to train and socialize their technical support staff to implement the ITIL best practices. Maybe the best way to understand the power of ITIL and Seven Wonders’ training services is to look at how International Game Technology has used both. Over the years, we have trained about 150 IGT employees in ITIL, including more than half of a 90-person support staff who report to Sean Sauter, director of support services. His group, in turn, has trained others in the best practices most important to IGT, including incident management, problem management, change management and configuration management. In addition, IGT has taken advantage of our training in project management, team development and leadership. I also provide consulting services in these areas and the evangelization of the ITIL framework, helping IGT staff understand its value and put its ideas into practice. First developed in the 1980s, ITIL began as a library of publications describing processes, proce-

By William Cook

dures, tasks and checklists to improve IT services and deliver greater business value. This rich guidance has evolved through the years and now underpins ISO/IEC 20000, the International Service Management Standard for IT service management. The guidance contained in ITIL can apply to any size and type of organization, helping to establish a baseline for service delivery from which an organization can plan, implement and measure service improvement and value delivery. In understanding the role of Seven Wonders at IGT, we must recognize that information technology has grown to crucial importance in most organizations, and provides a significant source of competitive advantage. Since ITIL helps organizations align IT services to the ever-changing needs of the business, it can be extremely helpful for managers to understand and effectively use the ITIL framework.

ganizational changes,” says Sauter, “it helps to bring a third party in to shed light on the opportunities available and the path forward. One of the things we struggled with was that we had a lot of bright people, but they lacked perspective. ‘What’s wrong with what we’re doing?’ they asked. It’s not about that. It’s about doing things better and building a culture that believes in continually improving. Seven Wonders helped us to talk about these things in a way our people could understand and accept.” After three years helping IGT implement ITIL in the United States, we spent most of 2012 helping the company complete a year-long introduction of ITIL practices to the company’s subsidiaries around the world. I attended kick-off weeks in IGT regional offices in Asia, Latin American and Europe, to help Sauter and his team understand their needs, find common ground and talk about how ITIL best practices can help them achieve their goals.

“

At its foundation, project management involves some basic organizational and communications skills, but it’s really just a set of tools that managers can use to deliver significant value to their organizations. Project management is a related, high-value discipline that organizations can use to deliver technology projects on time and within budget. At its foundation, project management involves some basic organizational and communications skills, but it’s really just a set of tools that managers can use to deliver significant value to their organizations. Team dynamics have become crucial to every organization—if only because nearly everyone today works on at least one team. Teams have the power to bring out the best and the worst in people when they’re working together. In our team dynamics courses, participants learn how to better understand themselves and others to understand the barriers that can prevent them from achieving high levels of success. “Sometimes when you want to make large or-

128 Global Gaming Business SEPTEMBER 2013

”

“As in the United States,” Sauter says, “Seven Wonders helped us set a great foundation for ITIL and IT Service Management. As a result, we’ve seen accelerated response and resolution times, and best overall—increased customer satisfaction. I’m very proud of my team and what we’ve been able to accomplish together.” William Cook is founder and CEO of Seven Wonders Learning and CIO of JBA Consulting Engineers. He is a certified ITIL expert and Project Management Professional (PMP). Cook is a recipient of the Malcolm Baldrige Quality Award and is a recognized public speaker on IT management issues with both domestic and international engagements. To learn more about ITIL or Seven Wonders Learning, contact Cook at 702274-7373 or info@SevenWondersLearning.com.

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FRANKLY SPEAKING by Frank Legato

Under Cover

130 Global Gaming Business AUGUST 2013

VIC TOR RINAL DO

few months ago, I told you about how I testified in a lawsuit as an expert witness on slot machines. I just found out that other slot experts are having a lot more fun than me. I determined this after reading an article about a trial going on in Florida involving operation of “sweepstakes cafés.” According to prosecutors, an alleged charitable organization called “Allied Veterans of the World” is actually a casino operator, offering gambling to customers and keeping the profits. The organization, which evidently doesn’t purport to represent military veterans, only veterans of the “world” (Hey, I’m one of those!), is charged with impersonating Sheldon Adelson (that’s a felony, you know), operating dozens of “veteran charity” gaming centers that the state says are really just casinos. The Allied Veterans of the World says the same thing as all of these sweepstakes café people: They offer public internet access and telephone services, selling cards that give customers access to computers or codes to make long-distance calls. But really, what the cards do is give them access to a library of video slot games, on which they gamble and win or lose money. (Mostly lose. Sound familiar?) Prosecutors say they have all sorts of evidence, but just to make sure, they employed a “slot expert” named D. Robert Sertell to verify that these sweepstakes games are really slots. According to the Florida Times-Union, “D. Robert Sertell went undercover to about 40 Allied gaming centers from Broward to Duval counties while working for the Seminole County Sheriff’s Office and told police that illegal internet gambling was going on at all of the establishments.” Wait a minute. The guy was undercover? A slot expert who’s an official agent of law enforcement? All they asked me to do was go to a courtroom in Downtown Las Vegas and speak into a microphone before a judge. As I said in my subsequent account of the event in this space, there wasn’t even any courtroom drama. No one got up and screamed, “Alright! I did it!” or anything. This guy got to go to sweepstakes centers and assume a “cover” identity—mixing with the gamblers, pretending to have fun while in reality scoping the situation for illegal gambling activity. I wonder if he went in disguise. I know I would. I’m thinking Bermuda shorts, tropical shirt, white shoes, cheap toupee. Maybe a pair of those funny-nose

glasses with the big eyebrows on top. Maybe a cheesy mustache. (No, wait—I already have that covered.) As it turns out, Sertell is not going to testify in the case after all. An attorney of one of the 57 people arrested in the case—yes, allegedly, as many illegal casino moguls as Heinz ketchup has varieties—disputed Sertell’s credentials as an expert on gaming machines, pointing out that his work has never been peer-reviewed, his expertise has never been subjected to scrutiny, and that he “doesn’t have a college diploma,” for crying out loud. “The state’s entire case is predicated on Bob Sertell’s claims that gambling was occurring,” argued attorney Mitch Stone. “And from what we can tell, the state never even checked his credentials before hiring him.” Great lawyer name, by the way. Mitch Stone. It has TV movie written all over it: “Mitch Stone for the Defense!” But I digress… Prosecutors agreed to withdraw Sertell’s name as an expert witness on slot machines, saying they had mountains of evidence without him, like the names of the “sweepstakes” games, which reportedly included “Captain Cash,” “Lucky Shamrocks,” “Smokin’ 7’s” and “Money Bunny.” (Maybe I should have put them in “Global Games” this year.) I’m disappointed. No one even called me. Two judges and even some lawyers have already said I’m a slot-machine expert. It’s been in all the papers. I wrote a book. I periodically write ridiculous volumes of words about slot machines, as evidenced by the magazine you hold in your hands. (Or the Nook in your lap.) I even went to college, and got an actual diploma. I never heard of Mr. Sertell, and I’ve never read anything about slot machines he wrote. And, I’ve never seen him at any of the slot-expert union meetings. (Amalgamated Brotherhood of Slot Experts. AFL/CIO/LS/MFT.) Well, at least now they know to go with a bona fide expert for the next undercover investigation. I’m having the business cards printed up right now. “Frank Legato. Undercover Slot Expert.” I stand ready to go “under” at a moment’s notice. But only if I get a badge and a gun. Any badge will do. Even a plastic clip-on that says “SHERIFF.” But I’ll need a real gun. Hey, it’s Florida.

A Night to Honor Gaming’s Brightest Stars Don’t miss your opportunity to be part of a gala evening honoring four stars who have made the gaming industry what it is today — Gary Loveman, leader of the world’s largest gaming company; Frank J. Fahrenkopf, Jr., who piloted the industry’s most important trade group for nearly two decades; Celine Dion, who led the rebirth of the headliner in Las Vegas; and Guy Savoy, the creative force behind one of the Strip’s most memorable culinary experiences. Help honor these industry legends — sponsorship and ticket information is now available at www.americangaming.org.

Gary Loveman

Frank J. Fahrenkopf, Jr.

Celine Dion

Guy Savoy

25TH ANNUAL

GAMING HALL OF FAME CHARITY GALA AND INDUCTION CEREMONY November 14

PURE Nightclub at Caesars Palace

Proceeds from the event will benefit the National Center for Responsible Gaming.

Las Vegas

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CUTTING EDGE by Frank Legato

Power Processing Product: QXi-4000 Gaming Platform Manufacturer: Quixant

he QXi-4000 is a complete PC-based gaming platform designed exclusively to drive pay-to-play gaming and slot machines. This “all-in-one” gaming platform is built around the powerful AMD Embedded R-Series APU (Accelerated Processing Unit), which has been optimized for high performance with low heat generation. The QXi-4000 is available in Dual Core or Quad Core processor configurations clocked at up to 2.1GHz (2.8GHz with boost) and supports up to 16GB of high-performance DDR3-1600 main memory. The QXi-4000 supports up to four independent HD monitors using the high-performance graphics capabilities of the AMD Radeon HD7000G (integrated into the AMD Embedded R-Series APU), providing discrete, level graphics performance. Embracing the latest DisplayPort 1.2 standard, the QXi-4000 is capable of daisy-chaining multiple monitors from a single DisplayPort cable, which has the benefit of simplifying cabinet wiring looms. Quixant’s innovative QXi-4000 system design combines energy-efficient components with intelligent heat dissipation and cooling techniques integrated into the enclosure design to enable fan-less operation and reduce the

need for extensive cooling arrangements in the slot machine cabinet. The QXi-4000 also integrates dedicated PCI Express gaming features, including high-speed digital I/O, non-volatile RAM, audio amplifier, hardware nine-bit serial port support and inbuilt security functions. These features are made easily accessible to game software developers through Quixant’s extensive range of documentation, device drivers, libraries and gaming protocols, and it has also been designed to take full advantage of the latest 64-bit operating systems. The QXi-4000 is also designed to operate from the main cabinet 12V PSU, eliminating the extra expense and reliability issues normally associated with the multi-voltage “ATX style” PSUs usually required for PC-based platforms. Quixant offers a guaranteed five-year supply from launch of each product. The QXi-4000 gaming controller has been designed to be compliant with regulations in all major jurisdictions worldwide (including Nevada) minimizing the time required for customers to obtain regulatory approvals. For more information, visit quixant.com.

Couponing Plus

Product: PromoNet Bank Couponing Solution Manufacturer: FutureLogic, Inc.

asino operators looking at promotional couponing to help identify and reward their most valuable customers (carded or not) can use FutureLogic’s PomoNet solution, which is fast becoming a choice for casinos around the world. For casinos considering promotional couponing for the first time, FutureLogic offers the PromoNet Bank introductory solution. With no network, server or IT infrastructure requirements, the PromoNet Bank solution can be up and running at a bank of slots within hours, giving operators the means to allocate budgets, design coupons, select trigger marketing conditions, and manually upload promotions and download issuance and redemption data to an entire bank of slots using a USB flash drive. Once uploaded into a bank, coupons are issued automatically from the slots based on game-play behavior that meets pre-set conditions. Players can then redeem the coupons at the relevant location. This solution personalizes the player’s experience by allowing them to redeem, exchange or accumulate coupons, or to proceed through game play according to the casino’s rewards program.

Key benefits include: • Promotional couponing for banks of slots • Run couponing on up to 20 slot machines per bank • Target hot/cold areas, jackpots, tournaments, and penny slots • Designed for expedited deployment; casinos can get up and running within hours • Promotions, issuance data, and redemption activity is handled with a USB flash drive 132 Global Gaming Business AUGUST 2013

• No Network, Server, or IT Infrastructure Needed • Create Promotions Using Programmable Triggers • Set up issuance triggers including date, time of day, length of play, wagering/win/loss/cash-out amount, and number of games played • Assign campaign budget (total value) and throttle (frequency of issue) • Identify and reward most valuable players • Linked to game play, triggers can be set to identify and reward various player profiles • Issue coupons “instantly” • Once a trigger is met, proprietary technology issues coupons instantly (before customer walks away) • Boosts member sign-up • Increase player club membership through sign-up promotions • Closed loop system • PromoNet’s Redemption Terminal and built-in business analytics tool combine to provide much-needed performance measurements for ROI calculations For more information, visit futurelogic-inc.com.

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JAPAN Jumps Election results

good news for gaming

BY PATRICK ROBERTS

rospects for the legalization of gaming in Japan increased substantially last month when the Liberal Democratic Party of Prime Minister Shinzo Abe scored an election victory. The LDP has long been the biggest proponent of gaming in Japan, and after the election it now controls both houses of the Diet, the Japanese legislature. This kind of dominance in Japanese politics has not occurred since 2007, and should endure through 2016. The LDP has put forth an aggressive program of economic reform—including the legalization of gaming—and will now be able to approve it with little opposition. In a conference call on the company’s second-quarter earnings, Las Vegas Sands Chairman and CEO Sheldon Adelson noted the results. He said LVS has been lobbying for Japanese casinos for the past five years, but with no party in control, there was little consensus on the issue. Adelson said he expects the LDP to introduce a gaming legalization by November or in 2014 at the latest. The election results should also launch lobbying efforts by Japanese cities that want to host a casino. With Tokyo and Osaka the front-runners, other cities would have to line up support of the legislators who will write the bill.

Leading Candidates Equities analysts Union Gaming Research Macau believe Singapore’s two gaming resort operators are “odds-on favorites” to win casino licenses in Tokyo and Osaka should Japan move ahead, as expected, with legalizing the industry. “We gather that Japan is modeling its gaming expansion based on the Singapore integrated resort model more so than on any other international gaming jurisdiction, which is to say that a major purpose of gaming expansion in Japan will be to drive inbound tourism via large IRs with significant amounts of nongaming space,” the firm said in a recent client note. “For this reason we believe that the two incumbent IR operators in Singapore are the odds-on favorites for the two likely ‘prize’ locations.” Singapore’s two casinos, Resorts World Sentosa and Marina Bay Sands, are operated, respectively, by Genting Singapore, a Singapore-listed subsidiary of Malaysian resort conglomerate Genting, and NYSE-listed gaming giant Las Vegas Sands. “We believe Genting Singapore’s RWS along with Las Vegas Sands’ MBS are the baseline models for Japan,” the firm said. UGRM expects Japanese legalization to proceed in two stages with the support of Prime Minister Shinzo Abe’s seven-month-old government. “We think the return to power of the (Liberal Democratic Party) improves the likelihood of gaming expansion being passed this fall, although we readily admit that gaming expansion is not a foregone conclusion,” the firm said. The key hurdle at this point is upcoming elections to the upper house of the Diet, where the LDP is looking to wrest a majority from the opposition Democratic Party of Japan. With the LDP’s power solidified, draft legislation could be introduced as early as this fall to decriminalize casinos, followed by a bill to estab134 Global Gaming Business SEPTEMBER 2013

Experts believe that Prime Minister and Liberal Democratic Party leader Shinzo Abe will push through gaming legalization.

lish a regulatory framework. “This would then be followed by RFP processes that could conclude as early as mid-2015,” the firm said. “With a minimum three-year construction period, we think mid-to-late 2018 is the absolute earliest potential opening date for an IR in Japan in a best-case scenario.” UGRM expects at least two licenses, one each for Tokyo and Osaka, with a handful of licenses issued for smaller venues in regional locations. Economically disadvantaged Okinawa and tourism-dependent areas such as Hokkaido will likely be included to secure political support for the central government’s pro-casino caucus.

Slow Down And Relax With Japan’s long history of flirting with gaming legalization and then backing away, Ben Lee, the managing director of iGamiX Consutlancy, says the good thing about the recent election is that Abe beat the one-year jinx, which has snared the previous five prime ministers, causing them to leave office one way or another before a year in office. “But gaining control of the upper house of the Diet was very significant,” says Lee. “This is encouraging, but he now must avoid a groundswell of opposition from the general public as he attempts to amend the constitution. This is not a simple proposition; it involves an entire raft of rights that affect the public, which is now becoming aware of what’s happening. There are some grassroots queries that are beginning to question what he’s trying to do. This is much more important than this pesky little issue of casino gaming.” Lee says the gaming issue has a very low profile in Japan and isn’t considered that important. “You have a very high profile outside of Japan,” he says, “because it’s being fanned by the lobbyists and the public relations experts from the gaming companies, but inside Japan it’s not that visible.” And Lee says the procedures that must be followed leading up to any legalization of gaming, as well as a bidding process and the granting of licenses, is also daunting. “This would take five years, at the very minimum,” he contends.

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GOODS&SERVICES

Bally Buys SHFL Combination to create content powerhouse lot and system manufacturer Bally Technologies Squireannounced last month that it has agreed to actable game equipment and content supplier SHFL entertainment for a premium price of $23.25 per share, in cash, making the blockbuster deal worth approximately $1.3 billion. The transaction, which was unanimously approved by the boards of both companies, “combines two best-in-class, highly complementary and customer-centric gaming technology companies with a shared commitment to innovation to create a company offering the gaming industry’s most diversified suite of products,” according to a Bally statement. “Both Bally and SHFL have long histories of proven innovation, excellent customer service and successfully anticipating and adapting to changes within our industry, which makes bringing our two companies together a great strategic fit,” said

Ramesh Srinivasan, Bally’s president and chief executive officer. “The transformational acquisition of SHFL— which joins two high-caliber, talented and creative teams—will further enhance our ability to deliver future growth and serve our customers. SHFL’s intellectual property, renowned brands and industry-leading suite of diverse, high-performance products will enable us to offer an unparalleled offering of gaming products and services, which, when combined with our content, technology, operational capabilities and respective geographic footprints, will provide the most comprehensive product portfolio offered around the world.” Added SHFL entertainment CEO Gavin Isaacs, “We believe that now is the right time to join forces with Bally, as there is a unique opportunity to combine each other’s many strengths, particularly our talented teams who have been the key drivers of success for each organization. It also represents an opportunity for our shareholders to receive a significant premium for their shares.”

SHFL Wins Macau Case

Bally has made several acquisitions over the past few years, but most of them have been tuckin acquisitions related to the construction of the Bally iGaming Platform. This latest acquisition is the most significant since Bally purchased Sierra Design Group nearly a decade ago. The addition of SHFL fits right into Bally’s strategy of offering content over multiple channels, as the company will now be able to offer SHFL’s leading specialty table games, such as Let It Ride!, Three Card Poker, Caribbean Stud and Ultimate Texas Hold ‘em, both in casinos and as part of the supplier’s online/mobile platform. The purchase also gives Bally a new revenue stream from SHFL’s line of industry-standard table-game utility products, mainly the line of automated shufflers that led John Breeding to found the company as Shuffle Master in 1983, and transformed the industry through the introduction of multi-deck shoes in blackjack. However, it is the game content—begun with Breeding’s own invention Let It Ride!— that has forged SHFL’s identity over the past two decades. In addition to a healthy share of the live table game market, SHFL has dominated the market for electronic table games with its Table Master, Vegas Star and Rapid Table Games lines of fully automated and hybrid table games, replicating both traditional games and all of SHFL’s specialty games.

terblock and SHFL, then known as Shuffle Master. All but Shuffle Master worked out acau’s Court of First Justice has found for deals with LT Game, agreeing not to show the SHFL entertainment subsidiary SHFL product. Shuffle Master’s position was that Macau in a lawsuit filed by rival table supplier until a court ruled that Rapid Roulette inLT Game Ltd. and its owner, Jay Chun. fringed on any patents, it was entitled to disChun filed suit over SHFL’s Rapid Baccarat play the product to the industry. multi-terminal hybrid table game product, “Shuffle Master has always and will always which he alleged infringes on two LT Game comply with requirements of the regulatory patents. He claimed the game infringes on his authorities in Macau, and to date, no court in SHFL games covered by sheets at G2E 2012 patents for multi-terminal systems, which link a Macau has found that we have infringed upon table with a live dealer to electronic play staanyone’s patents,” the company said in a statetions to allow multiple wagers on a single game. ment in response to the court injunction. “Therefore, we strongly believe in our The product style is extremely popular in Macau, where a baccarat game lawful right to sell all of our products fairly and competitively in Macau and that manned by one dealer has been wagered on by a hundred or more players, no infringement of patents exists or will be found to exist.” who view and bet on the action at electronic play stations. After the statement was issued, customs officials showed up at Shuffle MasLT Game claimed to possess two patents giving it a monopoly on the hy- ter’s booth, and forced the company to cover the Rapid Baccarat tables with brid game, at least in Macau. The dispute boiled over in the Chinese enclave, sheets. During the course of the show, the sheets were later removed. first in 2009 when customs officials seized Rapid Baccarat units before they In the decision, the Court of First Justice rejected Chun’s claim of patent incould be displayed at G2E Asia, and ultimately in a confrontation on the floor fringement and ruled that SHFL’s patent on the game, now called SHFL Fusion of the trade show itself in May 2012. LT Game officials showed up armed Hybrid, is valid. with an injunction from the Court of First Justice prohibiting suppliers from LT Game says the fight is not over. displaying hybrid electronic table games allegedly covered by LT Game “The decision of the Macau court is not final and Mr. Chun will be appealpatents. ing the court’s decision,” Paradise Entertainment Ltd., parent company of LT The injunction named four companies—AlfaStreet, F2 Systems, InGame, said in a statement provided to GamblingCompliance.

136 Global Gaming Business SEPTEMBER 2013

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The Zone at Casino du Lac Leamy

TCSJohnHuxley Announces Quebec, Vietnam Contracts able game supplier TCSJohnHuxley announced Tgaming the completion of North America’s first “electronic arena,” at Loto Quebec’s Casino du Lac Leamy. “The Zone,” as the auditorium-style area is called, uses Novomatic’s Novo Unity II game platform and terminals supplied by TCSJohnHuxley. The 40 terminals are laid out in a formation facing a large stage, where live hosts drive a selection of games. Huge screens and dramatic lighting complete the picture. After an extensive search of the marketplace including a customer and employee focus group to evaluate the terminals and platform being considered, Loto Quebec selected TCSJohnHuxley to supply the Novomatic Novo Unity II Terminals and Game Platform. Over the course of 18 months the teams worked together on new game ideas, development and the necessary approvals. The initial order consisted of 40 Novo Unity II Terminals, Auto Wheels, Saturn Roulette Wheels and Game Servers with a combination of Live/Auto Roulette, Live Baccarat, Live Black Jack and a suite of NOVO slot games. In a separate release, TCSJohnHuxley announced that the company was chosen to provide gaming equipment to Vietnamese casino project Grand Ho Tram Strip, which opened in July. TCSJohnHuxley supplied 90 tables, mainly baccarat, with a small amount of roulette, blackjack, sic bo and stud poker tables, along with more than 70 Omni Baccarat displays, a selection of Saturn Roulette Wheels, Chipper Champ 2 chip sorting machines and Supernova Progressive Table systems, along with all the table accessories and chairs.

Inspired to Install BetBOX in Finland nspired Gaming Group announced an agreement IBOX with Finnish casino operator RAY to install its Betvirtual sports and bet management system 138 Global Gaming Business SEPTEMBER 2013

(BMS) in the Casino Helsinki, currently the only licensed casino in Finland. RAY will be creating a new sports bar area that will offer its customers the ability to place bets on virtual races over the counter via a cashier using the Inspired BetBOX POS system. Players at the casino will be able to bet on virtual horse racing, greyhound racing, motor racing, football, tennis, cycling and speedway. The Casino Helsinki will launch virtual sports in September with the first installation of Inspired’s turn-key virtual sports BMS. Inspired has previously provided its virtual sports library as an additional feed to existing sports books, but now provides a full service of content, betting platform and back-end data analytics. “We are very excited about the launch of Inspired’s virtual sports and our new casino sports bar,” said Sina Hentunen, gaming manager at Casino Helsinki. “It’s something totally new for our customers, and we’re confident the excitement of the races and the community experience of virtual sports betting will be a big success. The breadth and quality of virtual sports available, and the ability to take bets and control what sports we show and when, are the key reasons we chose Inspired as our content and technology partner for this project.” BetBOX enables casinos, as well as retail sports betting operators and lottery operators, to broadcast a new virtual sports event or numbers game every three minutes and take bets over-the-counter and, in the near future, on self-service tablets.

Good News, Bad News for Galaxy alaxy Gaming anG nounced that the Harrah’s Cherokee Casino Resort in North Carolina has installed Galaxy side-bet prodGalaxy Gaming CEO ucts on 61 of its 100 taRobert Saucier bles. The positive announcement came four days before regulators in California upheld a judge’s ruling that the company is unsuitable to do business there. The California Gambling Control Commission unanimously upheld a judge’s ruling that deemed Galaxy Gaming California, a subsidiary of Las Vegas-based Galaxy Gaming, and its CEO, Robert

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Saucier, unsuitable to do business in California. Since it involved litigation, the four-member gaming commission voted in closed session and declined comment afterwards. Both Galaxy and Saucier had submitted applications for a finding of suitability to supply Native American casinos in California with casino products. Galaxy manufactures a variety of side-bet products for table games, as well as TableMAX, an automated table game that offers blackjack without a live dealer. In April, Administrative Law Judge Catherine Frink in Sacramento wrote, â&#x20AC;&#x153;Cause exists to deny both applicants,â&#x20AC;? holding that both Galaxy Gaming and Saucier provided untrue or misleading information. Saucier also allegedly inked licensing deals with several California Indian casinos without commission approval. Galaxy Gaming officials quickly announced that it will be business as usual for the company in all its jurisdictions, including California, where it will continue to service its tribal contracts. The company points out it operates under a separate license than the one that was rejected by the commission. â&#x20AC;&#x153;It is important to remember that our companyâ&#x20AC;&#x2122;s current status as a licensee in California is unchanged and remains in good standing,â&#x20AC;? Galaxy said in a statement. â&#x20AC;&#x153;Nothing ends here. We are confident there will be no interruption in Galaxyâ&#x20AC;&#x2122;s client service and our popular products will continue to be available in California now and in the future.â&#x20AC;?

IGT Reports Social Gaming Boost eading slot manufacLGame turer International Technology reported earnings of $65.7 million for the third quarter, which is a 40 percent increase over last yearâ&#x20AC;&#x2122;s third quarter. The reason? Social gaming on IGTâ&#x20AC;&#x2122;s recently acquired DoubleDown Casino, according to company officials. While revenues overall were up 8.7 percent for the quarter to $579 million, revenues directly related to the DoubleDown social casino, offered by Facebook and other online outlets, increased 105 percent to $61 million. â&#x20AC;&#x153;Our momentum continues and is bolstered by our focused attention on the execution of our business strategy and positive leverage from the broad distribution of our best-in-class content.,â&#x20AC;? said IGT CEO Patti Hart.

NEWave Lauds Bossier City Installation

oftware supplier and consultant NEWave announced that its recent installation of compliance software at Louisianaâ&#x20AC;&#x2122;s Margaritaville Bossier City

casino was one of the most successful installations in the companyâ&#x20AC;&#x2122;s 20-year history. NEWave COO Tom Bechtel, who oversaw the installation on-site, said, â&#x20AC;&#x153;The casino had 165 taxable jackpots on the first dayâ&#x20AC;&#x201D;120 of which happened on the first day shift! The entire staff used our software, and everything balanced perfectly. In fact, we were even approached by the Gaming Commission with questions, and within five minutes we had every answer they were looking for.â&#x20AC;? â&#x20AC;&#x153;We were thoroughly impressed with the NEWave team,â&#x20AC;? said Margaritaville Bossier City Director of Finance Brice Kahler. â&#x20AC;&#x153;This was a major software installation, and of course, the software is critically important to our business operations. Everything functioned perfectly and seamlessly, and the NEWave team fielded questions from our staff and regulators with ease and professionalism. It was a pleasure to work with them.â&#x20AC;? NEWave installed several components of its award-winning myCompliance Manager software suite, including Title 31 Manager, Tax Form Validator, TINCheck, OFAC Watch List, and eFile IRS. The combination of software modules allows Margaritaville Bossier City to remain in compliance with all federal, state and local regulations, while empowering the casino to execute the highest levels of customer service. NEWave also installed Manuals, an essential software program for any grand opening because it replaces the need to have forms created. Further, NEWave installed its Audit Manager for Revenue Audit, which allows casinos to electronically complete audits for all casino-generated forms, greatly reducing the time and expense that may be involved in a traditional audit process. NEWave also announced that it has installed its advanced TINCheck Software at Treasure Island Resort & Casino in Welch, Minnesota, owned and operated by the Prairie Island Indian Community.

IGT Supplies sbX at Grand Ho Tram eading slot manufacturer International Game Lserver-based Technology announced that the companyâ&#x20AC;&#x2122;s sbX slot system has been selected by the Grand Ho Tram Strip luxury beach resort in Vietnam. The deal marks the first time that a casino in Asia will implement a floor-wide game-to-system (G2S) floor, done in conjunction with IGTâ&#x20AC;&#x2122;s Advantage casino management solution. Along with the inclusion of sbX, which creates a path for an open-system architecture, the casino will take advantage of IGT Media Manager and the IGT Universal Game Adaptor, or UGA, allow-

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ing Service Window technology across slots on the gaming floor, including other manufacturersâ&#x20AC;&#x2122; games. â&#x20AC;&#x153;The expansion into Vietnam is a great step forward in the growing Asia market,â&#x20AC;? said Eric Tom, IGTâ&#x20AC;&#x2122;s executive vice president of global sales. â&#x20AC;&#x153;IGTâ&#x20AC;&#x2122;s ability to provide properties such as the Grand Ho Tram Strip with a casino floor that is based upon open gaming standards allows for flexibility and forward-thinking innovation in their operations. Having the ability to provide a better player experience on the floor with personal interaction at the Service Window is a valuable way for the property to differentiate itself from its competitors.â&#x20AC;? The Grand Ho Tram Strip will utilize products from across the Advantage product suite, including Table Manager as well as the newly released IGT Rebates and Commission module, developed especially for the junket market in Asia.

Casino Cosmopol Praises JCMâ&#x20AC;&#x2122;s iVIZION

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ash-handling equipment supplier JCM C Global has announced that the company has received praise from Swedenâ&#x20AC;&#x2122;s Casino Cosmopol for the iVIZION bill validators, which have been operating on 250 games in the operatorâ&#x20AC;&#x2122;s casinos for the past six months. â&#x20AC;&#x153;Selecting the iVIZION was a no-brainer for us because of its improved security, fastest noteto-note processing speed and 99 percent acceptance rate,â&#x20AC;? said Roger Jonsson, gaming specialist at Casino Cosmopol. Added Erik Sober, another gaming specialist of the operator, â&#x20AC;&#x153;After six months of having iVIZION on the casino floor, we are very happy to see that iVIZION is performing above our expectations. We will ensure we order every slot machine with iVIZION in the future, and we are excited to learn more about the additional functionalities of iVIZION and other new products of JCM Global, such as DNA (Dynamic Network Applications).â&#x20AC;? â&#x20AC;&#x153;We are thrilled that Casino Cosmopol is so enthusiastic about iVIZION,â&#x20AC;? said JCM EMEA General Manager Payam Zadeh. â&#x20AC;&#x153;We created iVIZION to be the foundation of intelligent validation, and clearly Casino Cosmopol is benefitting from its many capabilities. Now as we move forward with additional apps for iVIZION, including the new Dynamic Network Applications, we expect that iVIZION will be even further entrenched as the new global standard.â&#x20AC;? SEPTEMBER 2013 www.ggbmagazine.com 141

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BonusBox

BonusBox Hits Canadian Casinos onusBox from Gaming Support USA was reBandcently installed at Century Casino Edmonton River Cree Resort and Casino. Both are located in Canada’s Alberta province. With BonusBox, players are randomly offered cash prizes, and casino operators are somewhat in control of the prizes, such as jewelry, show tickets, smart phones and cash. “We are very pleased to have our first BonusBoxes installed and operating in Canada,” Gaming Support USA CEO Don Baugh said. BonusBox supports branding and promotions while offering custom audio, background insert and lighting.

Apex OKs BMM Labs for Latin America

Bally Solutions in Downs at Albuquerque

ally Technologies, Inc. has announced the inBBonusing stallation of iVIEW Display Manager, Elite Suite and additional solutions at the

pex Gaming has chosen BMM Testlabs to provide game approval service in Latin America. The Austrian firm announced that it will be submitting three different game selections for approval in Peru, Panama and Chile: “Multi Magic Classic,” “Red Hot Fruits XXL” and “Multi Magic VI.” Apex Gaming sees great business potential in Latin America, said the company, which has been making use of the services of BMM Testlabs in Europe for many years. “Latin America is a key market for Apex Gaming,” said Max Pessnegger, APEX chief technical officer. “Our combination of exciting, fun games packed in premium cabinets makes us stand out as a potential preferred partner for operators there. Player feedback in Peru has been excellent.” Pessnegger called BMM “the best test lab in Latin America at present. The combination of our own experience plus BMM’s superior standing in Latin America made BMM Testlabs the clear choice for us.”

Kent/McBride, P.C. is proud to announce that Thomas McCormick has joined the firm as of July 2013. Tom comes to K/M after serving for more than twenty years as Executive Vice President and General Counsel with a prominent gaming equipment manufacturer and distributor. Prior to this position, Tom served as Assistant General Counsel for two different Hotel/Casinos in the Atlantic City, NJ market. Tom brings a wealth of knowledge and experience to the firm and will be heading up K/M’s Gaming Practice. His experience in all prior positions will also bolster and augment K/M’s existing Corporate Practice.

Kent/McBride, P.C. was formed in 1994 and has grown to over fifty attorneys in PA, NJ, NY and DE, specializing in the areas of civil defense litigation, including commercial premises liability, workers’ compensation, construction site accident and defect, and dram shop matters as well as corporate, real estate and employment and benefit practices counseling and litigation.

KENT/McBRIDE

Contact Tom at 856-382-3701 or Tmccormick@kentmcbride.com.

Please also visit our website at www.kentmcbride.com.

142 Global Gaming Business SEPTEMBER 2013

Downs at Albuquerque in New Mexico. “Bally’s amazing iVIEW DM with EBS will help us continue to be a leader in casino entertainment,” said the Downs at Albuquerque Chief Operating Officer Scott Eldredge. “Our players will be thrilled to experience these new tools on our casino floor. Our mission is always to provide a top-notch entertainment experience and provide players with additional ways to win, and exciting floor-wide bonus events certainly help us continue to meet that goal.” iVIEW DM is backward-compatible on most gaming devices with a touch-screen display. It provides a way for casino operators to present players with self-service account access, marketing messages and secondary bonus games on the main game screen without interrupting play. The casino operator will use EBS across their iVIEW network using player-centric, real-time interactive promotions such as Virtual Racing, USpin Bonusing and DM Tournament When EBS combines with iVIEW DM, it adds dramatic new levels to the slot-play experience. The EBS applications deliver floor-wide, personalized promotions, second-chance-to-win events and the ability for players to earn valuable rewards without interrupting play on the base game. The interactive solutions enable players to spin wheels, select and root for their favorite contest-driven car or horse, get instant rewards on their birthday and participate in instant floorwide slot tournaments. The EBS applications have been proven to increase coin-in, carded play, new card signups, and time on device at casinos across the North America. The Downs at Albuquerque has also added Bally’s slot-management system and player-tracking systems. The casino will utilize Bally’s mediamanagement solution and install the state-of-the-art Promotional Kiosk™ application across the gaming floor.

CORRECTION On page 18 of our August issue, we listed an erroneous statistic that there are an estimated 70 slot machines for every adult in Oklahoma. The correct statistic is that there is one slot machine for every 70 adults in Oklahoma. We regret the error.

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PEOPLE MAZER SHIFTS FROM VEGAS TO AC

he Linq will open without one of the men who saw it rise. Rick Mazer, president and general manager of Harrah’s, Rick Mazer the Flamingo, the Quad and the Gansevoort on the Las Vegas Strip, has been assigned to Harrah’s Resort in Atlantic City, just months before the Linq will debut in the middle of his four properties. Mazer, who spent many years leading Harrah’s Entertainment properties in mid-America, now returns to the site where his career began. Mazer was an original dealer at Caesars Atlantic City back in 1979. Mazer will not stand still, however. He’ll be in charge of construction of a $128 million convention center at Harrah’s, as well as take part in the development of the prospective Caesars property at Suffolk Downs racetrack in Boston. Mazer’s Atlantic City debut will be delayed a month, however, as the Casino Control Commission refused to rule on his license application last month, deeming it “incomplete.” Eileen Moore, currently the president of Caesars Entertainment’s Mid-North Division, which includes the properties in southern Indiana and Illinois, will take over as president and GM of the Flamingo, the Quad and the Gansevoort, while Caesars Palace President Gary Selesner will oversee operations at Harrah’s. Jon Gray continues as general manger of the Linq.

WOODS TO PENNSYLVANIA GAMING CONTROL BOARD

avid Woods is currently awaiting a background David Woods check to take his seat as commissioner on the Pennsylvania Gaming Control Board. He was appointed by Governor Tom Corbett, who names three of seven commissioners to the board. The legislature appoints the other four. The annual salary of a commissioner is $145,000. Terms are three years. Woods is from Delaware County and has been chief of staff for Dominic Pileggi, the Senate majority leader, since 2006. Prior to Pileggi, Woods was the senior vice president at Exelon. He has also been the chief of staff for Senator F. Joseph Loeper. Woods will join the board in time to attend hearings regarding the six applicants vying for Philadelphia’s second gaming license. The hearings

will take place later this year and the decision will be made next year.

HNEDAK STEPPING DOWN TO HEAD DREAMCATCHER

he board of directors of architecture and design firm Hnedak Bobo Group, Inc. (HBG) announced that company co-founder Greg Hnedak is stepping down from his role as vice president and principal of MemphisGreg Hnedak based Hnedak Bobo to serve as CEO of DreamCatcher Hotels, a new hotel brand and development company born out of Hnedak Bobo Group in 2010. “My years shaping and growing HBG have been extremely rewarding, and I am proud to have helped build a nationally recognized design firm that has made so many important contributions to the gaming and hospitality industry,” Hnedak said. “It has been a true honor to work with so many passionate and innovative design and business leaders for the past 34 years.” According to the company, Hnedak and the HBG board have been actively succession-planning for two decades, elevating firm principals to key roles within the organization and adding new shareholders in preparation for effective leadership transition. HBG co-founder Kirk Bobo will continue in his role as president and principal of HBG, and assumes expanded responsibilities as the firm’s leader in charge of the business strategies. Rick Gardner, principal, assumes the post of practice leader, overseeing project design and delivery; Terri Struminger, principal, is named COO, managing the firm’s corporate operations; and Dike Bacon, principal, oversees HBG’s business development efforts. DreamCatcher Hotels was conceived during the height of the recession and launched in 2010 as a new approach to hotel development which offers owners a turn-key solution, from architecture and construction to the selection, purchase and installation of all in-room products, furniture and fixtures, with a guaranteed up-front price. DreamCatcher completed its first project in 2012, the 401-room Seven Clans Hotel adjacent to the Coushatta Casino Resort in Kinder, Louisiana, in partnership with the Coushatta Tribe of Louisiana.

144 Global Gaming Business SEPTEMBER 2013

MGM PROMOTES FELDMAN, OTHERS

GM Resorts International has announced three promotions in the company’s government affairs, Alan Feldman corporate communications and public relations departments. In a statement, the casino operator announced the promotion of Alan Feldman to executive vice president of global government and industry affairs, Clark Dumont to senior vice president of corporate communications, and Jenn Michaels to senior vice president of public relations. MGM’s corporate communications have merged, putting public affairs, executive communications, internal communications and corporate responsibility communications in a single department. Feldman, who formerly spent nine years with Mirage Resorts, joined MGM following the merger of the two companies in 1999. He will continue as MGM Resorts’ principal spokesman. Dumont joined MGM Resorts in 2011. Before that he was vice president of communications and public affairs for the Nevada Cancer Institute. Michaels had been with Mirage Resorts since 1992 and also joined MGM after the merger. She oversaw PR for the opening of CityCenter, Bellagio and many entertainment events.

GTECH NAMES LATIN AMERICA VP

ottery and gaming giant GTECH Corporation has named Chris Caldwell to the position of senior vice president of the company’s Latin America and Caribbean Region, where he will be responsible for pursuing new business opportunities in the region for products across the entire GTECH portfolio—lottery, interactive, gaming machines and systems, and sports betting. Caldwell replaces Erik Dyson, who left the company to become executive director of the All Hands Volunteers nonprofit organization. Caldwell joined GTECH in 1995 and has extensive industry experience, including leadership positions with the corporate Financial Planning and Analysis group; director of finance for GTECH’s Mexico operations in Mexico City; regional finance director for GTECH’s U.S. Western Region; and most recently as vice president of business development, where he was responsible for leading the pursuit, implementation and operation of new gaming business opportunities in key strategic markets throughout the world.

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NEW CFO AT CODERE

panish gaming and betting operator Codere has promoted Assistant Director Angel Corzo Uceda to the position of chief financial officer. Uceda has been with Codere since 2006, serving in a variety of capacities, including director of management control and as head of several projects. He holds degrees in aeronautical engineering and strategic management and was a consultant to Monitor Group prior to joining Codere. He succeeds Ricardo Moreno, who resigned to devote more time to personal affairs, the company said.

SCHLESINGER NAMED OPERATIONS VP AT HARD ROCK HOLLYWOOD

rew Schlesinger, a 34-year hospitality industry veteran, has been named vice president of hotel operations at Seminole Hard Rock Hotel & Casino in Hollywood, Florida. Previously, he served as general manager of the Warwick Hotel in Manhattan. Schlesinger has managed operations and openings for high-profile properties such as the Darling in Australia, the Water Club at the BorDrew Schlesinger gata Hotel Casino & Spa in Atlantic City, Kimpton hotels in New York City, and the Paramount in New York City and Mondrian Hotel in West Hollywood, California, both major Ian Schrager Hotels. Schlesinger also has served as general manager and director of operations at properties in Los Angeles, Philadelphia, Miami and Atlanta.

NEW CASINO EXECUTIVES AT VALLEY FORGE

wo new members have been added to the executive team at Pennsylvania’s Valley Forge Casino Resort. Jules Vorndran and Vicki Tilton have more than 50 years of combined experience in the gaming industry, both of their careers having started in Atlantic City casinos. Vorndran has been appointed vice president of player development, with responsibility for the management of the casino’s table game and slot player development, junket/splinter program and casino host staff. A 28-year veteran of the casino industry, Vorndran most recently led the marketing and player development functions for Spa Resort Casino in Palm Springs, California. Prior to that,

he was the senior vice president of casino marketing for Tropicana Hotel and Casino in Atlantic City for five years. Tilton has been named vice president of marketing, responsible for brand development, advertising, promotion and public relations. Tilton has worked in the gaming industry for 27 years. She was previously the director of marketing at Sugarhouse Casino in Philadelphia. Before that, she worked for Harrah’s Resort in Atlantic City on the hotel and pool expansion.

BENNISON NAMED CHIEF NEVADA ENFORCER

arl Bennison, who has served at the top of the enforcement division for the Nevada Gaming Control Board in the northern part of the state, was named chief of the entire division last month. Bennison will replace Jerry Markling, who is retiring at the end of August to accept a position at the Venetian in Las Vegas. Bennison has worked for the control board as an agent, special agent and supervisor. He was the board’s senior research specialist in the administration division and worked on special projects for various board members before being promoted to deputy chief for Northern Nevada enforcement.

DUTCH GAMBLING AUTHORITY NAMES APPELMAN

arja Appelman has been named the new director of the Dutch Gambling Authority, the Kansspelautoriteit. Appelman is an economist and partner/founder at SIRM, a quantitative and economic strategy consulting firm. Previously, she worked at the Dutch Healthcare Authority, the Central Planning Bureau, Ministry of Economic Affairs and the Dutch Competition Authority. Appelman will replace interim director Peter Plug and begin her new position on September 23.

PARISI NEW AFFINITY CHAIRMAN

evada-based Affinity Gaming has announced that Richard Parisi of Silver Point Capital will become the gaming operator’s chairman of the board, succeeding Don Kornstein. Parisi is a senior investment professional with Connecticut-based hedge fund Silver Point Capital, Affinity’s second-largest shareholder. He was elected when the company increased the board’s size from five to seven. Kornstein was re-elected and will remain a member of the board. Silver Point Capital owns 24.9 percent of the company, second only to private equity firm Z Capital Partners, which controls 30.5 percent of Affinity stock.

September 2013 Index of Advertisers AGA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .131 AGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .37 Ainsworth Game Technology . . . . . . . . . . . . .43 Alto Gaming . . . . . . . . . . . . . . . . . . . . . . . . . .65 Aristocrat . . . . . . . . . . . . . . . . . . . . . . . . . . . .13 Aruze . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25 Bally Technologies . . . . . . . . . . . . . . . . . . . .2, 3 Bergman Walls & Associates . . . . . . . . . . . . .111 BMM Test Labs . . . . . . . . . . . . . . . . . . . . . . . .61 Cadillac Jack . . . . . . . . . . . . . . . . . . . . . . . . . .33 Cantor Gaming . . . . . . . . . . . .Inside Back Cover Casino City Press . . . . . . . . . . . . . . . . . . . . .135 Casino Data Imaging . . . . . . . . . . . . . . . . . . . .83 Casino Design magazine . . . . . . . . . . . . . . . .137 Circa Jewels . . . . . . . . . . . . . . . . . . . . . . . . .121 Cuningham Group Architects . . . . . . . . . . . . .67 Decatur Business Center . . . . . . . . . . . . . . . .133 DEQ Systems . . . . . . . . . . . . . . . . . . . . . . . .113 Fantini Report . . . . . . . . . . . . . . . . . . . . . . . .141 FutureLogic . . . . . . . . . . . . . . . . . . . . . . . . . . .53 G2E . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .143 Gaming Partners International . . . . . . . . . . . .79 Gaming Support . . . . . . . . . . . . . . . . . . . . . .107 Gasser Chair . . . . . . . . . . . . . . . . . . . . . . . . . .81 Giesecke & Devrient . . . . . . . . . . . . . . . . . . . .95 GLI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19 Global Cash Access . . . . . . . . . . . . . . . . . . . . .47 GCA Interactive . . . . . . . . . . . . . . . . . . . . . . .29 Glory USA . . . . . . . . . . . . . . . . . . . . . . . . . . .139 Hnedak Bobo Group . . . . . . . . . . . . . . . . . . . .91 IGT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Insert Incredible Technologies . . . . . . . . . . . . . . . . .71 Interblock . . . . . . . . . . . . . . . . . . . . . . . . . . . .87 JBA Consulting Engineers . . . . . . . . . . . . . . . .21 JCM Global . . . . . . . . . . . . . . . . . . . . . . . . . . .39 Kent/McBride Law Firm . . . . . . . . . . . . . . . .142 Konami Gaming . . . . . . . . . . . . . .7, Back Cover Lifescapes International . . . . . . . . . . . . . . . . .85 LT Game . . . . . . . . . . . . . . . . . . . . . . . . . . . .138 Macquarie Group . . . . . . . . . . . . . . . . . . . . . .53 MEI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .89 Multimedia Games . . . . . . . . . . . . . . . . .11, 125 NEWave . . . . . . . . . . . . . . . . . . . . . . . . . . . . .75 Novomatic . . . . . . . . . . . . . . . . . . . . . . . . . . .51 Ortiz Gaming . . . . . . . . . . . . . . . . . . . . . . . .101 Quixant . . . . . . . . . . . . . . . . . . . . . . . . .104, 105 Regulatory Management Counselors . . . . . . .73 RPM Advertising . . . . . . . . . . . . . . . . . . . . . . .18 Rymax Marketing . . . . . . . . . . . . . . . . . . . . . .77 SHFL entertainment . . . . . . . . . . . . . . . . . . . .55 Spielo International . . . . . . . . . . . . . . . . . . . .15 TCS JohnHuxley . . . . . . . . . . . . . . . . . . . . . . .59 The Fine Point Group . . . . . . . . . . . . . . . . . .127 The Innovation Group . . . . . . . . . . . . . . . . . .129 TransAct . . . . . . . . . . . . . . . . . . . . . . . . . . . .103 US Bank . . . . . . . . . . . . . . . . . . . . . . . . . . . .117 UNLV Foundation . . . . . . . . . . . . . . . . . . . . .106 Vantiv . . . . . . . . . . . . . . . . . . . . . . . . . . . .98, 99 Veridocs . . . . . . . . . . . . . . . . . . . . . . . . . . . .141 WMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .57

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CASINO COMMUNICATIONS

David Rebuck Director, New Jersey Division of Gaming Enforcement

ew Jersey is just the third state to legalize online gaming in the U.S. But with a population of 9 million, the state is much larger than the other two states that have legalized online gaming, Nevada and Delaware, and will be a better proving ground for the industry. David Rebuck, the director of the New Jersey Division of Gaming Enforcement, has been working hard to write the regulations, determine a schedule and consider all the unforeseen issues that may arise once the games go live. Rebuck, recently named by the International Masters of Gaming Law as “Regulator of the Year,” sat down with GGB Publisher Roger Gros in his office in Atlantic City in July. To hear a full version of this podcast, visit ggbmagazine.com. GGB: How prepared were you when the governor

signed the bill to legalize online gaming? Had you done research? Established a process should this happen?

“

Rebuck: We had done significant research into the issue before the bill was passed. And we have a very aggressive time frame. The governor signed the bipartisan bill into law in February, which encourages the division to have regulations and systems in place for permissible internet wagering three to nine months after the bill became law. We are moving deliberately to that schedule, and we’re going to push the industry to achieve those goals too. At this point, the “go live” date is November 26. The bill says that 45 days before the go-live date, the director can appeal to the Casino Control Commission for an extension if he doesn’t believe he can meet that date.

How many operators do you expect to be ready when you are ready? I’m very confident that we’ll have at least three major operators ready to go on day one. And I expect that number to go up quickly after that. We’ll have the opportunity to meet that goal. New Jersey has full online gaming versus only poker in Nevada. What impact does that make? It makes it more challenging. We have more players who want to participate in making internet wagering work. We have 9 million people in this state, so those companies believe it will work here. But we’re also in a corridor where there are tremendous populations on our borders who may come into the state to play on the internet. Let’s talk about the lack of a “bad actor” clause in the New Jersey bill. I know you can’t comment specifically on the PokerStars situation because of an ongoing licensing investigation, but in general, if a company came before the DGE for licensing and had some of these pre-existing issues, what would be some of your concerns? Under the law signed by Governor Christie, there is no five-year ban as they have in Nevada against companies that violated the federal law against accepting U.S. bets after 2006. This is left to the division to determine. So we have the opportunity to look at every company and see what their performance was in the U.S. during that time. We don’t have a set bar, but we do have a chance to determine if the company is suitable to do business in New Jersey. Just like we do with land-based gaming. We’re dealing with many companies that have been in business around the world, so there’s a lot of skeletons in closets throughout this industry. It’s our

We’re dealing with many companies that have been in business around the world, so there’s a lot of skeletons in closets throughout this industry. It’s our job to find those skeletons, just like we would with land-based. They don’t have a carte blanche ability to come in free and clear. We’ll look at each one individually. 146 Global Gaming Business SEPTEMBER 2013

’’

job to find those skeletons, just like we would with land-based. They don’t have a carte blanche ability to come in free and clear. We’ll look at each one individually. The bwin.party deal with Borgata and MGM stipulates that bwin gets something like 65 percent of the profits from those online operations. Doesn’t that make them the primary operator? Shouldn’t they be held to a standard that any casino operator is held to? Revenue sharing is not a new concept in the casino industry. Slot manufacturers have been doing this for years. Ironically, in New Jersey, we don’t have revenue sharing for slot manufacturers. We’ve looked at it, talked to all parties, but the Atlantic City casino industry is not in favor of it. So we’re not going to push it as regulators. But in this area—and in any future sports-wagering area—they were for it. So as businessmen, I have to look at them and agree with their business model. We can regulate anything, and we’ll do that. We’ll follow that money and make sure that the people who are the managers and board members are more than suitable. Our standard of licensing for members of the casino service industry is almost as high as the operators themselves. The integrity issues are the same. How about problem gambling, self-exclusion, underage gambling… all the hot-button issues? I know they were addressed in the legislation. Are you confident you can handle these issues? I am confident, but I’m also aware we’re going to keep learning as we go along. The governor has made very clear that he’s very concerned about this. We’re working with not only the casinos, but also the compulsive gambling groups and Rutgers University about how to identify thes people in the internet world. We want to know best practices and research. The technology gives us some new opportunities, but it also gives us some challenges. Our dialogue is open with all these groups. Everyone has an opinion on what works and what doesn’t. Support it by research, show us the research and we’ll give it a try. Nobody wants this activity to hurt anyone.

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