Global Gaming Business Magazine, November 2015 by Global Gaming Business

GGB Global Gaming Business Magazine

iGaming Marketing GGB’s Gaming & Technology Awards Latest in CRM IGT’s Renato Ascoli

November 2015 • Vol. 14 • No. 11 • $10

Tipping the Tables TCSJohnHuxley brings innovation to the pit and beyond

Millennials & Tribes

How Indian Country can attract a new, younger audience

G2E Review

The best and the brightest at gaming’s most important tradeshow

Younger Generation

GGB’s

Official Publication of the American Gaming Association

40 Under 40!

PRSRT STD US POSTAGE PAID HARRISBURG PA PERMIT #1080

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CONTENTS

Vol. 14 • No. 11

november

Global Gaming Business Magazine

18 COVER STORY

COLUMNS

Table Masters

14 AGA G2E Recap

TCSJohnHuxley’s status as an international leader in table game supply gains more value every year, as younger players who enjoy skill and interaction join the baby boomers at the green felt. Executive Chairman Tristan Sjöberg leads the company into a new generation not only with traditional tables and e-tables, but on the system side with the company’s innovative Gaming Floor Live platform.

Geoff Freeman

16 Fantini’s Finance Hot Topics Frank Fantini

48 Legal Indian IRs Loretta A. Tuell

By Roger Gros

58 Table Games

FEATURES

22 Young Leaders GGB and G2E kick off the annual “40 Under 40” program, honoring 40 young emerging leaders of the gaming industry, with 10 profiles of future industry leaders. By Roger Gros, Chris Irwin, Frank Legato, John Lukasic, Carolan Pepin, David Rittvo, Jackie Shahin, Michael Soll and Michael Vanaskie

Roulette Riddle Roger Snow

34 Native Attractions Operators in Indian Country, where gaming revenues have dominated income more than at commercial casinos, are realizing they need to expand non-gaming attractions.

DEPARTMENTS 4 The Agenda

By Dave Palermo

6 Dateline

46 Awarding Excellence

12 Nutshell

The winners of GGB’s 2016 Gaming & Technology Awards blaze the trail for industry innovation.

54 New Game Review

By Patrick Roberts

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

Feature

50 Understanding the Customer Customer relationship management has evolved with the casino industry, giving operators a wealth of information that leads to more effective marketing.

40 Marketing iGaming

By Dave Bontempo

More targeted marketing can help internet gaming in the U.S. reach the next level of profitability.

60 Really Big Show

By Marjorie Preston

iGNA Outlook 43 It’s a Fantasy

57 Frankly Speaking 62 Goods & Services 65 People

The 2015 edition of the Global Gaming Expo featured views from top executives, a wealth of forward-looking products and a co-located “Integrated Resort Experience.” By Frank Legato

56 Cutting Edge

66 Casino Communications With Renato Ascoli, Chief Executive Officer, North America Gaming/Interactive, IGT

Sue Schneider

44 iGames News Roundup

NOVEMBER 2015 www.ggbmagazine.com

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THE AGENDA

The Cranky Skeptic Roger Gros, Publisher

his column is probably going to make me look like a grumpy old man, and there’s a lot of truth in that, so I won’t deny it. I spent a lot of time this year at G2E at sessions and in discussions with people about subjects such as millennials, eSports, daily fantasy sports, skill games and more. But the more I thought about it, the more I wondered what these issues mean for today’s casinos. How do they apply to what’s happening here and now? And I still haven’t figured that out. Let’s talk millennials. As I mentioned in my column two months ago, these folks aren’t a slamdunk either to become slot players or to bring significant dollars to the table (or machine, for that matter). And why are we worrying about them right now? The oldest millennials are 35, the youngest in their early 20s. I don’t ever recall people that young being casino customers at any time over the last 35 years I’ve been covering the industry. Sure, there were a few anomalies over the years, but for the most part, you really became a casino customer at 40 and moved up from there. And as a baby boomer, I’m a little jealous of the attention being paid to millennials over my generation. What are we, chopped liver? We’ve still got at least 20 good years left, and if we have to go into a casino and hear hip-hop in any of our favorite venues, you’ve lost us. I’m hoping that we can scoot around casinos in our motorized wheelchairs and walkers for many years to come. And the panic that we’re simply not luring millennials into casinos now simply doesn’t hold water. Steve Ruddock, writing for USPoker.com, reports that visitor information from the Las Vegas Convention and Visitors Authority shows that in the last three years, casino visitation by 20-29-yearolds has jumped from 10-13-percent to as high as 19 percent. They may not be coming to gamble, but at least they’re coming. And who’s to say they won’t become slot players like their parents once they hit 40? Stay calm and enjoy us baby boomers while you’ve got us. And what about daily fantasy sports (DFS)? Legalized for gambling over the internet—because that’s what is, despite their claims—by a loophole in the Unlawful Internet Gambling Enforcement

Act of 2006, DFS has grown exponentially, but without any control or regulation. That industry is paying for it now, so let’s be glad we didn’t jump on that bandwagon. Another bandwagon is set to roll, however, with eSports, and the casino industry is considering jumping on board. To be clear, eSports is competitive video gaming (think World of Warcraft, Halo, Call of Duty, etc.) in a tournament setting. This is an incredibly popular spectator event with the younger generation, watching experts play these games. No, I don’t get it either, but it is working. So will these people actually bet on these players? Uncertain, but also very dangerous. How could you even tell when someone is throwing a game? Beware. And my favorite is skill games. Suddenly, skill games are the savior of gaming, the silver bullet that will entice all these millennials to become slot players before their time. OK, again, stay calm and look at what we’re considering. Skill players have never been a favorite in a casino. Let’s recap the response of casinos on one game where skill can really make a difference. Blackjack is a game of skill, proven to be by Edward Thorp in his groundbreaking 1962 book, Beat the Dealer. But just look at the debasement of blackjack rules in recent years. When you reduce the payout for blackjack from 3-2 to 6-5 you put skill players at a significant disadvantage. And remember, basic strategy players do not have an edge over the house. Only card counters can achieve that, so changing the rules affects all players in addition to the very, very small percentage of card counters at whom it is aimed. It is counterproductive. So how can casinos even claim to be encouraging skill slot players if they really are going to give them the best of it? Of course, that will never be the case. We’ll have lots of discussions about these and other topics in the coming months to determine what really works for casinos in the future. But don’t forget us old folks. We’re still around, and still spending money.

Global Gaming Business NOVEMBER 2015

Vol. 14 • No. 11 • November 2015 Roger Gros, Publisher | rgros@ggbmagazine.com Frank Legato, Editor | flegato@ggbmagazine.com Monica Cooley, Art Director | cooley7@sunflower.com David Coheen, North American Sales & Marketing Director dcoheen@ggbmagazine.com JohnBuyachek, Director, Sales & Marketing jbchek@ggbmagazine.com Floyd Sembler, Business Development Manager fsembler@ggbmagazine.com Becky Kingman-Gros, Chief Operating Officer bkingros@ggbmagazine.com Lisa Johnson, Communications Advisor lisa@lisajohnsoncommunications.com Columnists Frank Fantini | Geoff Freeman Sue Schneider | Roger Snow | Loretta A. Tuell Contributing Editors Dave Bontempo | Chris Irwin | John Lukasic Dave Palermo | Carolan Pepin | Marjorie Preston David Rittvo | Patrick Roberts | Robert Rossiello Jackie Shahin | Michael Soll | Michael Vanaskie

EDITORIAL ADVISORY BOARD Rino Armeni, President, Armeni Enterprises

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

• Julie Brinkerhoff-Jacobs, President, Lifescapes International

• Nicholas Casiello Jr., Shareholder, Fox Rothschild

• Jeffrey Compton, Publisher, CDC E-Reports

• Geoff Freeman, President & CEO, American Gaming Association

• Dean Macomber, President, Macomber International, Inc.

• Stephen Martino, Partner, Duane Morris, Baltimore

• Jim Rafferty, President, Rafferty & Associates

• Thomas Reilly, Vice President Systems Sales, Scientific Games

• Steven M. Rittvo, Chairman/CEO, 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. 901 American Pacific Drive, Suite 180 • Henderson, Nevada 89014 702-248-1565 • 702-248-1567 (fax) www.ggbmagazine.com The views and opinions expressed by the writers and columnists of GLOBAL GAMING BUSINESS are not necessarily the views of the publisher or editor. Copyright 2015 Global Gaming Business LLC. Henderson, Nevada 89014 GLOBAL GAMING BUSINESS is published monthly by Casino Connection International, LLC. Printed in Nevada, USA. Postmaster: Send Change of Address forms to: 901 American Pacific Dr, Suite 180, Henderson, NV 89014

Official Publication

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© 2015 IGT. All Rights Reserved. Hot Roulette™, King Stacks®, and King Show Games® are trademarks of King Show Games, Inc. For more information on King Show Games (KSG), go to www.ksg.com. All other trademarks used herein are the property of their respective owners. Artwork, descriptions, game play, photographs, videos, and other product details depicted are subject to change. IGT is committed to socially responsible gaming. Our business solutions empower customers to choose parameters and practices that become the foundation of their Responsible Gaming programs.

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DATELINE USA november2015

It’s Not Over Till It’s Over New Jersey’s sports betting appeal may have some legs

HOTLAnTA

MGM, other companies eye casinos in Georgia capital

Georgia legislative study committee has until December 1 to make recommendations to lawmakers about finding new funding sources for the HOPE scholarship program, which has helped more than 1.7 million Georgians pay for college since 1993. One way would be to allow casino gambling and horse racing in the state. Committee members are considering state Rep. Ron Stephens’ proposed constitutional amendment allowing up to six casinos. The proposal by Stephens, chairman of the House Economic Development Committee, would charge interested operators $25 million up front; they also would have to invest at least $1 billion to qualify for the main license for the Atlanta market, or $200 million for any of the other five. It also sets up a “Problem Gaming Fund” to treat gambling addicts.

Gross gaming revenue would be taxed at an annual rate of 12 percent, of which at least 90 percent would be directed to “educational programs and purposes,” with HOPE scholarships as a top priority. Supporters said the six proposed casinos could raise $280 million per year for HOPE and pre-K education programs and create 10,900 jobs statewide. Metro Atlanta, one of the largest metropolitan areas in the U.S. that does not offer Las Vegas-style gambling, would be allowed to have two casinos. Gambling proponents hope to an amendment on ballot statewide in 2016. MGM Resorts and Las Vegas Sands have already expressed interest in an Atlanta casino, with other gaming companies sure to join in.

PHILLY CASINO PLAN APPROVED Partnership between Cordish and Greenwood still faces legal hurdles

he Philadelphia Planning Commission has approved the construction plan for the Live! Casino, a $400 million casino resort in South Philadelphia’s stadium district planned by Stadium Casino, a partnership of Baltimorebased Cordish Companies and Greenwood Racing, owner of the Parx casino at Philadelphia Park in Bensalem, Pennsylvania. The plan, approved despite much opposition from current Philadelphia operator SugarHouse Casino due to market saturation concerns, calls for a 2 million-square-foot facility with more than 2,000 slot machines, 125 table games, an upscale boutique hotel (a renovation of the current Holiday Inn hotel at the site), local and nationally recognized destination restaurants, live entertainment venues and a 3,000-space parking garage. “We extend our thanks to the Planning Commission for its thoughtful consideration of the project plan,” said Joe Weinberg, managing part-

ner of the Cordish Companies. “With our preeminent location, innovative, world-class architecture, interior design and exciting resort, dining and entertainment venues, guests from all over the world will experience the country’s first comprehensive gaming, resort, entertainment and sports destination right in Philadelphia’s Stadium District.” The Pennsylvania Gaming Control Board chose the Live! project because of the foot traffic expected from events at the three nearby sports stadiums of the NFL’s Philadelphia Eagles, MLB’s Phillies and the NHL Flyers. The Philadelphia Sports Complex already draws 8.5 million visitors per year. The project is expected to generate 3,000 direct and indirect jobs, with the Stadium Casino partners

Global Gaming Business NOVEMBER 2015

n appeal of a U.S. Appellate Court decision filed by New Jersey and Governor Chris Christie had a positive outcome last month, raising hopes of bringing sports betting to Atlantic City casinos and the state’s racetracks. The state had asked that the entire Third Circuit Court of Appeals review the state sports betting law. The law was struck down recently by a panel of three appellate judges. The court agreed to hear an en banc or full-court hearing. These appeals are usually declined quickly without any response from the winning side—in this case the leagues—required. To be granted the en banc hearing, a majority of the judges have to agree there is a reason to hear more arguments, so the result is encouraging to those who seek to legalize sports betting in the Garden State. In addition, two appeals court judges have recused themselves from the case, meaning that New Jersey only has to convince six out of 10 judges, instead of seven out of 12. Two New Jersey congressmen, Rep. Frank Lobiondo and Rep. Frank Pallone, applauded the move. “Not only do the citizens of New Jersey overwhelmingly support legalized sports betting and the revenue that would come to the state with it, but existing federal law picks winners and losers, and is unconstitutional and arbitrary,” they wrote in a release. “Several states can already operate sports betting, but New Jersey has been shut out despite the will of our citizens. We remain committed to seeing sports betting become legal in New Jersey, and this reconsideration is a positive and important development.” New Jersey is attempting to circumvent a federal ban on sports betting by instituting a self-regulated industry that could operate at the state’s casinos and racetracks. The state is arguing that the current federal ban is on state-regulated sports betting. The Appeals Court panel originally ruled that the state was still regulating sports betting by limiting it to casinos and racetracks, applying age restrictions and other rules.

committed to supporting local and regional businesses, MBE/WBE and veteran-owned business, and longterm contracts with local vendors. The partners have predicted that the casino will attract 4 million incremental visitors per year to the market, with more than $400 million a year in annual economic benefits. While the Planning Board OK means construction could begin, it will not until a suit filed by Rush Street Gaming’s SugarHouse is resolved. The suit will be considered by the Pennsylvania Supreme Court.

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DATELINE ASIA november2015

Beijing to the Rescue? Government pledges to help stop the bleeding

acau casino stocks got a lift on news that the mainland Chinese government will step in to help the gaming mecca revive its flagging casino industry. In mid-2014, after years of unprecedented and even explosive growth, Macau saw its fortunes plummet due to the government’s anti-corruption campaign, which scared off high rollers who supported much of the city’s multibillion-dollar economy. VIP players accounted for more than 70 percent of Macau’s gaming revenues in the second quarter of 2014, a number that dropped to 55 percent during the same period in 2015. The loss of elite players has decimated the city’s junket operations and forced some operators to close up shop or consolidate their rooms. It has also caused nervousness among casino concessionaires who have invested heavily in lavish new resorts along the Cotai Strip. Now, help may be on the way. On October 1, Li Gang, director of China’s local liaison office, told the Teledifusao de Macau TV network the Beijing government has a support plan for Macau’s predominant industry,

which is now in its 16th straight month of decline. While the official did not outline the rescue plan, news reports indicate it will include measures to boost the mass market and increase tourism. “Easing of visa restrictions, easier border crossing measures and continued infrastructure improvements could be a few that come to mind,” speculated Stifel Nicolaus Capital Markets gaming analyst Steven Wieczynski. “We still expect the VIP market to remain constrained. However, anything that the government does to support the growth on the mass side should be viewed positively.” Easing the cap on table games would also be an obvious palliative measure, according to a note from Karen Tang of Deutsche Bank AG. Industry pundits and some casino operators including Melco Crown’s Lawrence Ho hope the government rewards companies that have invested heavily in non-gaming attractions, such as Melco’s new Studio City on Cotai. President Xi Jinping has demanded such non-gaming amenities, saying they will diversify the market and bring in more mainstream tourists.

WYNN LOSES IN JUNKET THEFT VIP staff accused of stealing millions

Here come the big guys

t last count, an employee of Dore Holdings, a junket operator with a room at the Wynn Macau, reportedly absconded with millions in revenues from the resort’s VIP room. Wynn Resorts says the theft has nothing to do with the integrity of its operations or that of Dore Holdings. But Wynn shares have taken a hit from the widely publicized scandal. In a note cited by the Financial Times, Daiwa Capital Markets said staff at Dore Holdings “allegedly fled with between HKD200 million and HKD2 billion (US$258 million).” The latter figure was later revised, and the missing funds apparently total about $50 million. Wynn spokesman Michael Weaver said the “current reported concerns have no direct financial impact on Wynn Macau.” But shares of the company dropped by 3.55 percent on the news, to their lowest level since mid-2010. A similar incident took place in April 2014 when an agent with VIP room operator Kimren took off with between HKD8 billion and HKD10 billion, “creating a situation that allegedly scared away some of the investors who provided financing to junkets,” the Daily Times suggested.

New Deal for Jeju outh Korean Lotte Tour Development Co. an- Lotte Tour Development’s proposed Dream Tower nounced last month that a privately held affiliate, Dongwha Investment and Development, plans to build a giant integrated resort on Jeju Island. According to Union Gaming Securities Asia, the project would have the tallest hotel tower in Jeju “by a significant margin” and could include up to 1,600 hotel rooms, 200 table games, 400 slot machines and electronic table games. “There are currently eight operating casinos in Jeju, all of which are quite small, with an average of just 41 tables and 23 slots at each,” wrote Union Gaming analyst Grant Govertsen. “We believe Dream Tower represents the second large-scale foreigners-only IR to receive construction approval from the Jeju government.” The first was Resorts World Jeju, a joint venture of Genting Singapore Plc. and Mainland China real estate developer Landing International Development. In February, the team broke ground on a US$1.8 billion casino resort on Jeju. Resorts World Jeju is expected to open in phases beginning in 2017. Dream World is expected to open in the second half of 2018. On October 5, Union Gaming estimated casino gross gaming revenue in Jeju could “reach US$2 billion over time, up from approximately US$200 million today.”

Daiwa analyst Jamie Soo concurred, saying, “As a whole, the junket segment never recovered from this liquidity squeeze. We are already seeing signs of this today, with individuals purportedly rushing to the junket (Dore) in an attempt to withdraw funds.” Several analysts agreed that Dore’s problems are unrelated to Wynn, adding that the junket operator is small potatoes in the market. Overall, said Sterne Agee analyst David Bain, “We believe the apparent theft at Dore Group will likely only have a minor negative impact on VIP market gross gaming revenue as we see VIP softness as demand-driven, not credit-driven.” And Kenneth Fong of Credit Suisse said there was “no financial risk” to Wynn Resorts.

NOVEMBER 2015 www.ggbmagazine.com

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DATELINE EUROPE november2015

NagaCorp, others Look at Cyprus Winner takes all (at least for 15 years)

ive casino operators have paid an up-front fee of €10,000 (US$11,250) that gives them the right to bid on a Cypress gaming license. While six bidders are reportedly in the race, only five were identified in news reports: NagaCorp of Cambodia, Genting Group of Malaysia, Hard Rock International of the U.S., Sun International of South Africa and Bouygues of France. Potential contenders looking at the Greek-controlled republic include Las Vegas Sands Corp., MGM Resorts International and Caesars Entertainment, as well as Kerzner International, according to the website Yogonet.com. The Cyprus Tourism Organization estimates the new casino will lure an additional 500,000 tourists per year to the Greek side of the Mediterranean island, reports CalvinAyre.com. Presently, the bulk of visitors to Cypress hail from the U.K., followed by Russia, Greece, Sweden, Germany and Israel. The sole winning bidder, expected to be chosen in 2016, would have a 30year permit to operate an integrated resort with casino. The Cypriot government will levy a 15 percent tax on gross gaming revenues.

Code Talkers

British bookmakers introduce responsible gambling policy

n updated set of standards will be in place in British betting shops starting November 1 under a “Responsible Gambling Code” developed by the As- Association of British sociation of British Bookmakers. Bookmakers Chief Executive Malcolm George The code will be introduced by all members of the association. It includes a ban on the advertising of gaming machines in shop windows, development of a national self-exclusion list and a ban on TV ads touting free bets as a sign-up incentive before 9 p.m. The code is designed to help betting shop staff identify gamblers who may be developing gambling problems and may be at risk of gambling addiction. For example, the code asks shop staff to challenge customers on their age as soon as they enter a shop, to further protect against underage gambling. The code will be enforced by the independent Responsible Gambling Committee, which will have the power to revoke an operator’s membership, association officials said. “The past year has been a year of innovation for the industry in the area of responsible gambling,” said ABB Chief Executive Malcolm George in a press statement. “The initial code signaled our intent to take action in this area and introduced some important early steps. However, as the industry trials and rolls out initiatives such as multi-operator self-exclusion and new ways of using customer data to identify potential harm, it is important that our code is updated to reflect these developments. The first Code for Responsible Gambling, launched in October 2013, allowed players to set a limit on the amount of time they play, or the money they spend. The new code requires players to decide yes or no on whether they wish to set a limit. 8

Global Gaming Business NOVEMBER 2015

SAIL AWAY Resorts World Birmingham casino debut set

he Genting Group of Malaysia announced the Genting International Casino at the $230 million Resorts World Birmingham, which will be the largest in Great Britain, opened on October 26. Amenities include slot machines, table games, electronic table games and poker rooms, plus an outdoor smoking terrace. Designed to evoke a luxury cruise ship, the seven-story property created 1,200 jobs. The facility will offer a new conference and banqueting facility called Vox. Also debuting was a retail outlet shopping area and the CineWorld 11-cinema complex, including the region’s first IMAX screen in a multiplex. Europe’s first 4-star Genting Hotel at the resort will start booking guests for November 2. Its 178 boutique rooms and suites are based on feng shui design. The adjacent Asian-themed spa will offer the latest and traditional treatments. It is the fifth Resorts World attraction opened by Genting; others are located in Singapore, the Philippines, New York City and Malaysia. The sixth is planned for Las Vegas. Genting’s United Kingdom President and Chief Operating Officer Peter Brooks said, “We are thrilled that, for the time, Resorts World Birmingham will bring the uniqueness and excitement of a large-scale integrated resort offer to the West Midlands region and beyond.”

UNITED WE STAND Finland consolidates all gaming activity under one entity inland’s state-owned gaming operators—Veikkaus, Fintoto, and Raha-automaatttiyhdistys, or RAY—will be merged into one organization, reports SBC News. The consolidation was ordered by Finland’s Cabinet Committee on Economic Pol- Helsinki’s Casino RAY icy in September. It is designed to maintain shared practices and standards and create a stronger industry as international online gaming companies offer more competition. The merger should be complete by late 2016. Finland’s gaming industry generated about $1.7 billion in revenues in 2014, SBC reported. Media reports indicated that the merger could lead to staff cuts, and only a third of the current management teams in all three organizations will be retained. No CEO has been named, but Sweden’s Nordicbet is laying odds on who will get the job: the favorite is Juha Koponen of Veikkaus, followed by RAY’s Velipekka Nummikoski and Fintoto CEO Pertti Koskenniemi. Former Casino RAY GM and business development manager Heikki Rinta-Panttila has resigned.

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DATELINE GLOBAL november2015

BahamaS Break? Izmirlian, government officials in talks S

arkis Izmirlian, CEO of Baha Mar Ltd., met last month with Bahamas Prime Minister Perry Christie and Attorney General Allyson Maynard-Gibson in a lastditch effort to preserve his ownership of the stalled $3.5 Bahamas Prime billion Baha Mar resort project and prevent the liquidation Minister Perry Christie and takeover of the project by the Bahamas government. Izmirlian, who came under fire for criticizing Christie’s government for its failure to help with the training of Bahamians for the project, sought to assure the government that he can resolve the issues surrounding his company and the main contractor of the project, China State Construction Engineering Corporation and its subsidiary China Construction America (CCA). The project halted after Izmirlian stopped paying the contractor, on the basis that CCA had repeatedly missed deadlines for completing the project.

The project is reportedly more than 90 percent complete, but a Bahamian government mission to China to resolve the issues ultimately failed, after which Christie initiated liquidation proceedings—and threatened to deport Izmirlian if he continued his media attacks on the government. At October’s meeting, Izmirlian told Christie that he is committed to resolving outstanding issues and completing the resort. “Time is of the essence,” Izmirlian told the Bahamas Tribune. “A plan to resolve the issues and enable Baha Mar to move forward needs to happen now. I expressed to the prime minister my grave concerns about the liquidation of Baha Mar. I believe the prime minister fully understands the issues from my perspective, and what I am willing to do to help resolve them.” Christie told the newspaper that the meeting was “excellent,” although he did not specifically say he will suspend liquidation proceedings.

Great Choice

Ontario grants region to Canadian company Bloomberry Resorts CEO Ricky Razon

ollowing a competitive procurement process, Ontario Lottery and Gaming Corporation selected a group headed by Great Canadian Gaming Corporation, the Ontario Gaming East Limited Partnership, as the service OLG CEO Stephen Rigby provider for Gaming Bundle 2, one of three gaming zones in the East Gaming Bundle. The Ontario Gaming East partnership will pay $37.4 million cash plus another $13 million in expenses in return for a 20-year agreement with OLG to operate existing betting facilities at Thousand Islands casino near Kingston and the slots operation at Kawartha Downs in Peterborough. The contract also allows Ontario Gaming East to build a new casino in Belleville or Quinte West. However, Quinte West Mayor Jim Harrison said he told OLG officials there isn’t any land in Quinte that is suitable for a gaming facility and the city is not interested in applying for a license. Chuck Keeling, vice president of stakeholder relations and responsible gaming at Great Canadian Gaming, said the company hopes to have a new or expanded facility ready to open by the fall of 2017. OLG President and Chief Executive Officer Stephen Rigby said the announcement “marks an important milestone in OLG’s modernization and the future of our organization. As the service provider for the East Gaming Bundle, the investments Ontario Gaming East LP will make will help move modernization forward while ensuring we continue to deliver an exceptional experience for our customers.” Recently re-elected, Netanyahu made a campaign promise to look into the likely social and economic Study ordered for Israeli casino effects of legalizing gambling in Israel, which would be a controversial sraeli Prime Minister Benjamin move. Netanyahu wants information on the If the casino idea gets approved, potential economic and social impact of a the Eilat Airport’s current location is proposal to open the first legal gaming Israeli Prime Minister among potential casino locations, casino in the resort city of Eilat. Benjamin Netanyahu the Times of Israel reported. The airNetanyahu recently asked senior minport is scheduled for relocation. isters to prepare a study regarding the proposed If the casino eventually opens, it would give IsEilat casino that might involve Las Vegas Sands raelis their first domestic casino since the Jericho owner Sheldon Adelson, who is good friends casino closed in 2004 in nearby Palestinian-conwith Netanyahu and owns four newspapers in trolled territory. Israel, Casino.org reported.

Hope in Eilat

Global Gaming Business NOVEMBER 2015

Bloomberry Eyes

Argentina Razon considers Buenos Aires locations

s there a Solaire resort in Argentina’s future? It’s possible. Bloomberry Resorts Corp., which owns and operates the lavish Solaire Resort and Casino in Manila’s Entertainment City, has established a subsidiary with the express purpose of investigating casino prospects in the Latin American country. Oscar Alberto Ghezzi has been named president of the entity, Solaire de Argentina SA, reports Asia Gaming Brief. Ghezzi currently leads the Argentine Chamber of Tourism and is a former president of the Federation of Hotel and Gastronomy Professionals of Argentina. In a filing to the Philippine Stock Exchange, the subsidiary noted it “has a proposal to establish an integrated resort in Argentina, but it is still pending evaluation and action of government agencies and regulators in Argentina.” Bloomberry Resorts Chairman Enrique Razon told the Philippine Star the company is looking at “an undisclosed area of the capital, Buenos Aires.”

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DATELINE TRIBAL november2015 Mashpee Chairman Cedric Cromwell

Ready to Roll Mashpee Wampanoag tribe gets land-into-trust OK from BIA a

s if the gaming industry in Massachusetts weren’t already very complicated, a decision by the Department of the Interior to grant land-intotrust status to 300 acres in the state to the Mashpee Wampanoag tribe has definitely thrown a monkey wrench into the system. The original law that allowed casinos in Massachusetts approved three zones and a single racino. The racino was a straightforward choice, with Penn National Gaming already opening a Hollywood Casino at Plainridge Racecourse. MGM Resorts won the right to build a casino in western Massachusetts in Springfield after beating back Mohegan Sun and Hard Rock International. Wynn Resorts won the Boston-area casino after a long and convoluted fight with Caesars Entertainment and later with Mohegan Sun. And the final casino in the southeast region was initially reserved for

the Wampanoag tribe, but delays in federal approvals spurred the Massachusetts Gaming Commission to open up the bidding to commercial casino companies. In September, in a surprisingly quick decision, the BIA granted reservation status to the Wampanoags that will allow it to build a casino in Taunton. Tribal Chairman Cedric Cromwell called it “truly a glorious, monumental day” for the tribe, which only became a federally recognized tribe in 2007 but can trace its history back at least 12,000 years. “Today, history has come full-circle,” Cromwell said in a statement. “While some outside the tribe will focus only on our quest to build a destination resort casino in Taunton, for us this goes far beyond economic development. This is about controlling our own destiny and preserving our ancient culture.” The tribe has committed to contributing 17 percent of its gross gaming revenue to the state (versus 25

Eastern Band of Cherokee Indians’ new $110 million Cherokee Valley River Casino & Hotel

New Harrah’s Cherokee Casino Opens Second North Carolina casino expected to tap new markets

ollowing two years of construction, the new $110 million Harrah’s Cherokee Valley River Casino & Hotel opened September 28 in Murphy, North Carolina. Owned by the Eastern Band of the Cherokee Nation and operated by Caesars Entertainment, the resort features 50,000 square feet of gaming space with more than 1,000 slot machines and 70 table games, plus a food court and a 300room hotel. The second Harrah’s casino in North Carolina, Harrah’s Valley River Casino is expected to attract more than 1 million visitors annually. The first was Harrah’s Cherokee Casino in Cherokee, opened in 1997, which attracts more than 4 million people a year and has a $300 million annual economic im-

pact on Jackson and Swain counties, according to a University of North Carolina study. Regional General Manager and Harrah’s Senior Vice President Brooks Robinson said, “Two years ago we started this, and to see it come to fruition today is phenomenal. To open the doors and to see three or four thousand people come through the doors in just the first 15 minutes is pretty phenomenal.” Principal Chief Michell Hicks commented, “This is a huge project. It came in on time and on budget, which is always tough to do. I’m very proud of that fact. This means more resources for the tribe so we can continue to expand our services for our people.”

percent for commercial casinos), but if a commercial casino is also approved in Region C (the final available license), the tribe pays nothing and the commercial casino pays 25 percent. Rush Street Gaming is the only bidder left for a commercial casino in the zone. Rush Street subsidiary Mass Gaming proposes a $650 million casino resort on the Brockton fairgrounds.

Tribal Showdown Phil Hogen steps into California tribal conflict

he tribal government of the Picayune Rancheria of Chukchansi Indians, which had hoped to reopen the Chukchansi Gold Resort & Casino in Coarsegold, northern California, in September, saw its plans shattered by the resignation of its entire gaming commission in September. This has caused it to reach out and enlist former National Indian Gaming Commission chief Phil Hogen to advise them on gaming regulatory issues. Hogen was chairman of the NIGC from 2002 to 2009. The departing commissioners, Lael Echo Hawk, Harlan Goodson and Norm DesRosiers, followed Executive Director Kammy Chhom out the door. All cited their inability to do their jobs without interference from the tribal government. Reggie Lewis, the tribe’s interim council chairman, declared, “We have to get that taken care of. Without a gaming commission in place, we can’t open the casino.” As of October 10, the casino had been closed for a year. When it was open, the casino had 1,000 employees. In its notification to the tribe, the NIGC wrote that the tribe’s “willingness to violate its own tribal gaming laws while negotiating the settlement of existing NIGC enforcement actions is alarming.” The tribe hopes that Hogen’s participation will help them get on the good side of the NIGC again. Lewis issued a statement that said, “Hogen’s independent voice is exactly what we needed to get the casino operating again and generating revenue for the tribe, and providing a world-class customer experience that brings jobs and economic activity to the region.”

NOVEMBER 2015 www.ggbmagazine.com

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NUTSHELL Florida’s parimutuel industry has been reeling from the recent 2-1 ruling by a 1st District Court of Appeals panel that reversed itself and decided that Gretna Racing in Gadsden County cannot offer slot machines without the legislature’s authorization. The ruling sided with Governor Rick Scott’s administration and state Attorney General Pam Bondi, who sought the rehearing. In May, the same court ruled slots were allowable in Gadsden County because voters had approved a referendum authorizing them. As before, the judges asked the Florida Supreme Court to determine if parimutuels can have slot machines if approved by local voters, or if they must be approved by the legislature. The Las Vegas Culinary Workers Union Local 226 has launched a radio campaign against Station Casinos shareholder Deutsche Bank for manipulating LIBOR rates, for which the bank paid a $2.5 billion fine. The complaint is part of an ongoing effort to get Station to agree to unionize its employees. MGM Resorts International announced that it will fund vaccines needed in panda reserves at the China Conservation & Research Center for the Giant Panda. The immunization program is run by Pandas International, a nonprofit organization dedicated to providing assistance to public education, research support and habitat preservation for China’s giant panda population. With MGM Resorts’ support, in collaboration with U.S. drug manufacturers, Pandas International will deliver over 1,000 vaccines to protect pandas in areas most impacted by the disease. “MGM Resorts is proud to join Pandas International’s efforts to protect giant pandas, including those in China facing this most recent outbreak,” said Jim Murren, chairman and CEO of MGM Resorts International. International Game Technology announced that its whollyowned subsidiary IGT Global Solutions Corporation (formerly known as GTECH Corporation) has developed new mobile player convenience apps for the Rhode Island Lottery and Tennessee Lottery. Each app is individually branded for the lottery and gives players quick access to real-time lottery information including jackpot information, winning numbers, lottery retailer locations, instant games information, and details related to responsible gaming. Both apps also feature a “Check My Ticket” function that enables players to scan both instant tickets and draw tickets with their mobile devices, and check if they hold winning lottery tickets. The

Keep the Money in Nebraska group launched an initiative to allow casino-style gambling at the state’s five licensed racetracks plus the shuttered Atokad Park racetrack in South Sioux City, in an effort to save the state’s struggling thoroughbred horse-racing industry. The three petitions submitted by the group to the state secretary of state’s office included two that would change state statutes and one that would amend the state constitution. The state law changes would levy a 20 percent tax on gross gambling revenue, with 75 percent going to the state and 25 percent to the host community, and require a $1 million license fee per operator. Also, a regulatory commission would be established. The constitutional amendment would ask voters to allow “all forms of games of chance to be conducted with licensed horse racing in Nebraska.” BMM Testlabs North America announced that it has attained ISO/IEC 17065:2012 accreditation. The ISO/IEC 17065 accreditation is an international standard for ensuring the competence of organizations that perform product certifications. The accreditation ensures that BMM’s product certifications are impartial, consistent and based on objective testing and analysis. Melco Crown Entertainment says pop star Madonna will be the first headline entertainer to perform at Studio City’s Event Center on the Cotai Strip in February. The 5,000-seat multi-purpose venue includes 16 private VIP suites. The Palms Casino Resort is now home to the world’s largest Hooters restaurant, which this month opened the two-story, 15,200-squarefoot restaurant capable of seating 400. Spain’s Casino de Ibiza has named JCM Global its preferred supplier of bill validation and printing solutions. The designation follows a four-week test of JCM’s iVIZION validator and GEN2 Universal thermal printer. The casino was already using the company’s WBA and UBA validators. The Ferrari dealership located inside Wynn Las Vegas announced it is closing the doors to its 10,000-square-foot showroom by the end of the year. The dealership opened in 2005 and charges $10 to tour its showroom. A new law in Maryland lowers the minimum age for casino workers from 21 to 18. Currently, anyone younger than 21 is prohibited from being in any area designated for video lottery activities. The new law allows employees who are at least 18 to remain in those areas if they are working.

CALENDAR November 10-12: SAGSE Latin America 2015, Costa Salguero Convention Center, Buenos Aires, Argentina. Produced by Mongrafie S.A. For more information, visit Monografie/SAGSE_bsas.com.

December 7-9: Global Symposium on Racing & Gaming, Loews Ventana Canyon Resort, Tucson, Arizona. Produced by the University of Arizona’s Race Track Industry Program (RTIP). For more information, visit ua-rtip.org/symposium.

November 17-18: Malta iGaming Seminar (MiGS) 2015, Corinthian Hotel, St. Julian’s, Malta. Produced by MiGS Ltd. and sponsored by the Malta Gaming Authority. For more information, visit maltaigamingseminar.com.

February 2-4: ICE Totally Gaming 2016, ExCel Center, London. Produced by Clarion Gaming. For more information, visit ICETotallyGaming.com.

November 24-25: Balkan Entertainment & Gaming Exposition and the Eastern European Gaming Conference, Inter Expo Center, Sofia, Bulgaria. Produced by the Bulgarian Trade Association of Manufacturers and Operators in the Gaming Industry. For more information, visit BalkanGamingExpo.com.

“They

Said It”

“Does Connecticut come into play? The answer is unequivocally no.” —MGM Resorts President William Hornbuckle dismissing the effects that a possible third Connecticut casino might have on MGM Springfield in Massachusetts

“A full smoking ban will have a disastrous impact on Macau and VIP operators. It’s like adding hail to snow.” —Kwok Chi Chung, president, Macau Association of Gaming & Entertainment Promoters

“Today, anybody who has the disposable income to play a slot machine has something in their pocket that is way more entertaining than that slot machine.” —Gaming historian David G. Schwartz, director of the Center for Gaming Research at the University of Nevada, Las Vegas, commenting that gaming on mobile devices will be essential for casinos to appeal to the millennial generation

“There are 120 million gambling-mad Chinese, Japanese and Koreans living within two hours’ flying time of this place.” —Craig Ballantyne, COO of Tigre de Cristal near Vladivostok, a deluxe casino resort located in a part of Russia that is often considered more Asian than European in feel

“Regardless of the monthly numbers released for the casinos, they’re all doing tremendous with non-gaming revenues. Atlantic City has been packed this summer. Everybody needs to look at the positives about what’s going on here and stop listening to all the naysayers.” —Atlantic City Finance Director Michael Stinson, after approving a budget that contains no tax increases

“With his former pal sinking $4 billion into the shrinking Macau market for Wynn Cotai, Okada might end up with the last laugh.” —Forbes, on Kazuo Okada’s Manila Bay Resorts venture in the Philippines; Okada and Steve Wynn, who is heavily invested in Macau, once were partners

February 22-24: World Game Protection Conference, M Resort, Las Vegas. Produced by World Game Protection Inc.. For more information, visit worldgameprotection.com.

“Banning smoking in casinos where the activity has long been allowed is not simple. In Las Vegas, it would need to be implemented in phases. A plan to eliminate smoking in casinos nationwide—including Indian casinos—needs to be discussed. Casino operators owe it to their customers and their employees.”

March 13-16: Indian Gaming 2016, Phoenix Convention Center, Phoenix, Arizona. Produced by the National Indian Gaming Association. For more information, visit IndianGaming.org.

—Columnist Howard Stutz, noting in a Las Vegas Review-Journal piece that the issue of casino smoking bans was not on the agenda for discussion at last month’s G2E trade show

Global Gaming Business NOVEMBER 2015

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AMERICAN GAMING ASSOCIATION

G2E Recap The world’s largest gaming trade show demonstrated the diversity of our industry By Geoff Freeman, President & CEO, American Gaming Association

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he last week of September brought more than 25,000 gaming-industry professionals to the American Gaming Association’s largest event, the Global Gaming Expo (G2E). Representing the diverse landscape of casino gaming, G2E 2015 showcased our dynamic industry and provided the forum for the industry at large to conduct business, learn and network. Gaming Shines in National Media

More than 250 national, local and trade media, including CNBC, The Wall Street Journal, CBS This Morning, Popular Science, Bloomberg BusinessWeek, Forbes, the Associated Press and ESPN attended G2E, highlighting what consumers and policymakers can expect from casino gaming during the next year. For the second straight year, CNBC broadcast from the exhibit floor highlighting gaming trends and gaming’s positive economic impact. Through these media outlets, we showcased our industry’s innovation and highlighted the value casino gaming provides to communities all over the United States. Emergence of Daily Fantasy Sports

Sports betting and daily fantasy sports sparked a lot of national attention and debate over the past year. DraftKings CEO Jason Robins, Penn National Gaming Senior Vice President Chris Sheffield and CG Technology CFO Jeff Burge discussed the differences between sports betting and daily fantasy sports, as well as the opportunity for growth and convergence of the industries. In the coming weeks, the AGA’s Sports Betting Task Force will be announcing a clearer, unified position on sports betting and daily fantasy sports. Innovation Key for G2E and AGA

The exhibit floor and educational seminars

conveyed a common theme at this year’s G2E: innovation. • Gaming suppliers debuted new social and virtual games; • Speakers shared ideas about how to capture the next generation of gaming customers; and, • The new Integrated Resort Experience embraced the totality of modern casino solutions. The points were driven home during the CEO Roundtable keynote. CEOs from AGAmember companies Caesars Entertainment, Rush Street Gaming and Scientific Games remarked how the future of our industry depends on innovation. For the AGA, innovation is critical for industry advancement. Removing public policy barriers and empowering the gaming industry to provide next-generation gaming experiences to our customers remains a priority. Protecting Industry Image

Further, the perception of gaming often drives policy decisions. Since debuting the AGA’s “Stop Illegal Gambling—Play it Safe” initiative, illegal gambling has emerged as an important issue for both the AGA and law enforcement. At G2E, we convened our Illegal Gambling Advisory Board for a roundtable discussion about these efforts. In addition, AGA released groundbreaking new research by Virginia Commonwealth University’s Dr. Jay S. Albanese exposing how illegal gambling funds large criminal enterprises. Distinguishing our highly regulated, $240 billion legal gaming industry from these criminal networks is necessary to change outdated and inaccurate perceptions of gaming. Keeping the Momentum Going

The year is quickly coming to a close, and as we look to 2016, the AGA already has big plans. We look forward to continuing the momentum to make a more inclusive and united industry.

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FANTINI’S FINANCE

Hot Topics How skill-based gaming and DFS redefine the gaming landscape

t a recent conference, I was asked to participate on a panel covering the hot topics in gaming. Identified so far are skill-based gaming, daily fantasy sports (DFS) and the future of legislation to legalize casinos in Mexico. My knowledge of Mexico’s prospects is limited, other than to know that the hodgepodge and piecemeal approach to expanded gaming has made a mess south of the border, and nearly everyone must agree it is time for rational and national laws. As such, I look forward to learning about Mexico from my fellow panelists. However, the topics of daily fantasy sports and skill-based gaming are ones on which I have some opinions that may be worthy of sharing.

Skill-Based Gaming You can count me as a skeptic on the impact that skill-based gaming will have on casinos and gaming suppliers, especially in attracting the millennial generation, which has become something of an industry obsession. It is early in the development of skill-based casino games, with Nevada having just issued its regulations and technical standards still to be written. But the first skill-based games displayed recently at G2E in Las Vegas were mostly just modest extensions of existing games. And that’s OK. Anything that makes slot machines more appealing or entertaining is welcome and, no doubt, many of the extensions shown, and other games to follow, will accomplish that. But skill-based games in casinos will not, and cannot, match the immersive experience, player empowerment and social interaction of the video games that enrapture so many millennials. Here’s why: • Regulators will not allow the developmentwith-abandon practiced by countless video game developers. They will have to control the games for fairness and honesty. • The immersive experience isn’t possible amid the clanging, flashing, crowded, music-blaring atmosphere of a casino. 16

By Frank Fantini

• Video gaming changes very fast. Changes can be made overnight. Players can attach themselves to a new game as fast as it is released. Regulators cannot, and should not, act as rapidly. Whereas a video game developer can change a game overnight, he or she can’t even get a game trialed or a regulatory hearing scheduled that fast in the real-money environment. In other words, regulators and the industry cannot maintain the pace of change players expect in the video gaming world. • Casino games will always be designed for the house to win, thus limiting the types of payouts and the degree of victories players can expect. None of this means efforts at skill-based gaming shouldn’t be tried. Nanotech Gaming, for example, is a small company that attracted considerable interest at G2E with a brand-new kind of casino game based on a pinball model that looks promising. Meanwhile, skill-based games already are succeeding in casinos. They’re called table games. Walk into a casino and you’ll see those much-sought millennials at the so-called carnival table games cheering and high-fiving, playing games that are more fun than serious and, with progressives and bonus bets, often with the prospect of the big hit once absent from the green felt experience. One argument discounting the importance of attracting millennials is that they don’t have much money to spend at this stage of their lives. But if they do, and if attracting them is important, then casinos need only do what they have always done best—provide the entertainment experience millennials want, whether at the tables, in nightclubs or in creating party pits on the casino floor. Daily Fantasy Sports DFS has rocketed from obscurity to almost oversaturation in a matter of months. By now, the major arguments are known: It is a game of skill, therefore legal. It has elements of chance and therefore is gambling, thus illegal

Global Gaming Business NOVEMBER 2015

in most places, and certainly needing regulation. It is a gray area unaddressed by legislation or regulation in most states. The legal arguments are interesting. And the future of DFS might well be decided in the courts. But more interesting are the prospective political battles and the irony of the battles. If DFS is found by the courts to be gambling, it will chill the industry to the point of freezing. Entities such as Major League Baseball and Disney do not want to be seen as owners of, or profiting from, gambling operations. And that is why the outcomes might be decided in the halls of government rather than in courtrooms. DFS has the potential to be a lucrative business if it becomes established. And the current owners and stakeholders are bigger and more powerful than those of the casino industry: the aforementioned MLB and Disney, Google, Comcast, Time Warner, Fox, Yahoo, CBS, the National Basketball Association and others. If the legal battles start to turn against DFS, don’t be surprised to see those powerful media and sports enterprises turn to legislatures for clear exemptions from gambling laws. That could have several ramifications for the casino and betting industries. On one hand, if legislatures clear the way for DFS, casino and betting companies could be largely on the outside looking in at the big boys having stolen this golden goose. That would be especially ironic if gambling companies continue to fail to get states to legalize sports betting. On the other hand, DFS might finally force the issue of the hypocrisy and futility of banning sports betting to the fore. If so, that could be the vehicle for expanding legalized sports betting, a positive for the industry. Whatever happens, expect the final decisions to be made more in legislatures than in courts. 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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Tops in Tables T

he unlikely revival of table games is about to enter its second decade—the dominance of slots continuing to slip away. At TCSJohnHuxley, Executive Chairman Tristan Sjöberg is enjoying the ride, but looking toward the future, as well. “We’ve been on a journey over the last couple of years,” he says, “and I think the journey has been very successful as it has injected enthusiasm back into the business.” Outside of Asia, where table games have always been king, the revival of tables has been attributable to one major variable, says Sjöberg, and that is its appeal to a younger demographic. “The younger customer wants more interactivity,” he says. “I think the interactivity aspect, as well as the skill-based aspect, is what’s driving this. People want to be recognized for their skill at various games, and they’re not just looking at an RNG to determine the outcome of what’s going to happen with their money that they punt.”

TCSJohnHuxley rolls with table-game tide By Roger Gros

Family Affair Sjöberg has taken a circuitous route to the leadership position at TCSJohnHuxley. He was born in Sweden and educated in the U.K., emerging with a Ph.D. in oceanography. He started his career as a scientific officer at the Plymouth Marine Laboratory. But he later felt the call of the family business, Knutsson Holdings, and returned to work for TCSJohnHuxley. Identifying Knutsson as a family business, however, is not quite accurate. The company is a leader in the digital entertainment field, being large shareholders of progressive iGaming companies like Net Entertainment and Betsson. It also owns companies that are active in financial markets, real estate, manufacturing, horse racing, biotech, publishing and more. Based in Singapore, Sjöberg leads offices around the world. The corporate headquarters is in London, and the company has a large facility in Las Vegas to serve the American market. The R&D office is based in York, England, and sales and service facilities are located in Marbella, Spain; Midrand, South Africa; Buenos “They want to be part of a community. And I think table Aires, Argentina; Sydney, Australia, and Macau. games—craps, roulette, blackjack—all offer that kind He’s particularly proud of the York facility and the products it of interactivity, along with the sense of community, has crafted over the last few years. whereas individual terminals might not do that.” “There are over 40 very, very smart people in York, working with individual customers, to make sure that the system is work—Tristan Sjöberg, Executive Chairman, TCSJohnHuxley ing for each individual customer,” he says. It is at that facility where TCSJohnHuxley developed its new platform, Gaming Floor Live (GFL). While table-game companies livers games such as roulette, baccarat and sic bo on tables and on various depreviously did not need platforms (other than the wooden surfaces upon vices as it fits individual customer needs. which the games were played), Sjöberg says Gaming Floor Live puts the com“So as a content provider, we are delivering games to terminals, such as pany squarely into the content business. touch-screen devices or potentially an electronic table game environment. This “This platform is now driving all our various components,” he says. “It’s enables us to offer a variety of solutions to different customers, depending upon driving the media system, it’s driving the bonusing, the optimization. GFL detheir regulations and their player demands.” 18

Global Gaming Business NOVEMBER 2015

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Back-End Bonus In addition to providing different options for players, GFL gives casino operators complete reports on all activities that occur on the tables/devices. “The GFL platform is a modular system,” Sjöberg explains. “So you can buy into as little or as much as you want. If we were so fortunate to have a customer that bought the entire systems and options, that operator would be able to drive his live media system through the displays. At the same time, the Gaming Floor Live umbrella system would optimize the tables, and give realtime data. It could also be driving the actual gaming devices in a lounge, maybe, allowing everything to be controlled centrally from one server.” An operator would be able to alter the games on the fly depending upon customer demands, the event or any other circumstances, says Sjöberg. “If you have the GFL bonusing system in there, you could easily change the bonusing in real time, and change the settings—subject to regulatory approval and licensing in your individual jurisdiction. Our GFL bonusing modular component gives operators the flexibility to offer whatever makes sense at a particular time.” In addition, operators can follow the action at their tables/devices via the GFL reporting module. “The reporting function is a very, very important function for us, and we are working very closely with our customers, to make sure that the reporting needs are fulfilled, in any shape, manner or form, as well as any GLI and jurisdictional compliance requirements,” says Sjöberg. And because the system produces real-time data on every play, it gives operators information about their tables not available in the past, when only theoretical holds were the norm. “With GFL, we can get down to the actual hold, and the actual percentages, as they happen in real time,” he says. In addition, GFL can keep track of how each customer has been rewarded, also in real time. “It is that customizable,” he says. “The dealer rating is an integral part of the GFL optimization. As it relates to rewards for customers, we can build that in, depending upon the individual operator’s needs, and often our customers already have a reward scheme, a loyalty scheme, and we would then simply interface with that, so it can be controlled under one system.” Sjöberg points out that TCSJohnHuxley games look different than traditional table games, even if they still play the same way, because of the media that GFL pumps into every table.

“With our Blaze products, we are able to offer the end customer a unique experience, which is extremely good for the operator,” he says. The company recently debuted a Blaze Money Wheel, the latest iteration of what some call a Big Six wheel, featuring lights, sounds, winning bets and more.

Digital Natives Millennials are part of the driving force in the expansion of table games. Sjöberg calls them “digital natives”—people who have grown up with devices and electronic interaction between friends. That’s what makes table games so appealing, he says. “They grow up in an environment where they learn how to swipe an iPhone before they’re 2 years old. And it comes back to that word ‘interactivity.’ They want interactivity. The younger crowd wants better graphics and they want to feel part of the game, just like they want interactivity and want to feel part of a phone or an iPad, or social media. They want to be part of a community. And I think table games—craps, roulette, blackjack—all offer that kind of interactivity, along with the sense of community, whereas individual terminals might not do that.” One of the ways that TCSJohnHuxley is preparing for the new millennials is to give operators the option of using portable devices, which are so familiar to younger generations. They can either be distributed by the casino, anchored in place within the casino, or players can use their personal devices—depending upon the legal restrictions in each jurisdiction. These devices allow casinos to convert previously wasted space into revenue-producing, exciting environments. “We use the Android system, and it’s a very flexible system,” says Sjöberg. “We use the Android operating system on a tablet, and the tablet can come in various sizes. If you would prefer a baccarat game, a 10.2 inch is perfectly fine. If you want a multi-game, then you probably want to go for a 13.3-inch screen. And it can be fixed or it can be portable, depending upon your needs as an operator.”

Games People Play As a premier table-game provider in the industry, TCSJohnHuxley’s expertise is in the games themselves. Sjöberg says the choices operators offer their customers can mean the difference between success and failure. “It’s a cliché, but if you want to have player acceptance, and at the end of NOVEMBER 2015 www.ggbmagazine.com

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“And who knows what we’re going to see in 10 years’ time? Are we going to see a slot machine with a blackjack feature in the middle of it? I’m not ruling it out, that’s for sure.”

out, that’s for sure.” the day, if you have no players playing it, nobody’s For Sjöberg, the future of TCSJohnHuxley making any money on it,” he says. “So, you need to is very bright. While there have always been have player acceptance. And it needs to satisfy the major competitors, and even more now that player in terms of risk/reward structure, and also, it’s the might of Scientific Games is gathering begot to be fun to play. hind Shuffle Master, he sees an opening. “And the key is finding those gems. There’s a rea“I think there are some real opportunities son why roulette and blackjack and craps have been for us as a family-owned and operated comaround for so long; they are easy to understand, but at pany. We can be nimble, agile, and supply our the same time, there is an element of skill and it’s very —Tristan Sjöberg, Executive Chairman, customers with what they need and a very perdifficult to actually master them. And I think that all TCSJohnHuxley sonalized service,” he says. “But of course, I’m new games have to be benchmarked against these also concerned about the capability of the 800classic, traditional games.” pound gorilla, because at the end of the day, Sjöberg says his company considers many new they have a lot of muscle behind them.” table games developed in-house and brought in by table-game inventors, but Nonetheless, he believes that 2016 will be a banner year for TCSJohnthere is one hurdle they all have to overcome. Huxley. “It’s all about the revenue per square foot,” he says. “If you have the greatest “We’re looking forward to a very innovative 2016, where we’ll be launchgame in the world, but it’s taking up the space of three tables, it has to perform ing a several new products,” he says. “And we’re looking at expanding our at least three times as well as the original game. GFL umbrella suite of product, so we’re rolling out bonusing here in North “You don’t want to replace a proven game with something that’s not proven. America, subject to approvals. And we’re also looking at expanding our GFL So, operators might give it a whirl for a month or two, but the pressure is on.” gaming components. And a lot of that will happen early next year, at ICE in The recent emphasis on skill games is somewhat ironic to table-game London. providers, where skill has always been an element. But Sjöberg says he’s fasci“So, we’re constantly innovating, and we’re constantly looking at adding nated by the recent developments. new products to our portfolio, and also building the IP within our company. “I’ve seen some really interesting features within the slot machines at G2E, We are moving towards a more IP-based company structure, where we are in where the feature is a skill-based,” he says. “There are some very good attempts control of our own destiny, apart from a handful of other products. by some of the manufacturers. I’m watching this space with a very, very close “Previously, we’ve been known as a company that distributed other maneye, because I think we might be moving toward a situation where the slot games ufacturers’ products, and we are now grabbing our own destiny, and launchare merging with the traditional games of the live table game space. ing our own suite of products. And I think that’s the way TCSJohnHuxley “And who knows what we’re going to see in 10 years’ time? Are we going to will move more in the future.” see a slot machine with a blackjack feature in the middle of it? I’m not ruling it 20

Global Gaming Business NOVEMBER 2015

AN ICON IS BORN

Sleek, stylish and ultra-modern, ICON is revolutionizing the industry and redefining the symbol of style.

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YOUTH Movement P

GGB’s 40 Under 40 recognizes the true future of the gaming industry

once de Leon isn’t the only one who has searched for the Fountain of Youth. Once it’s gone, youth can never be recaptured, which is why admiration for people who achieve great things while they are young is widespread. And it’s not only people searching for the Fountain of Youth. It’s communities, companies and entire industries. For nothing is sustainable unless you have young people coming up to keep it moving forward. The gaming industry is very fortunate that there are so many qualified young executives and officials in the business. GGB’s 40 Under 40 feature, presented for the third year in conjunction with G2E’s Emerging Leaders program, is proof that youth is being served in the gaming industry. “For the last two years, G2E, the Innovation Group and GGB have been fortunate to recognize young leaders in the gaming industry,” says Roger Gros, the publisher of GGB. “Each year, the nominations for this recognition have increased, and this year, over 160 people were nominated. It’s a testament to the bright future of the industry, and we’ve been very gratified by the response.” David Rittvo, executive vice president for the Innovation Group, says the reaction to the program has been overwhelming. “There has been a growing awareness about the Emerging Leaders program, sparked by G2E and GGB’s ‘40 Under 40’ feature,” he says. “The Innovation Group recognizes that new, creative leadership is needed to reinvigorate the industry, and we believe this program will play a key role going forward.” With so many excellent candidates nominated for G2E’s Emerging Leaders, the choice to narrow them down to 40 was daunting. But thanks to GGB’s Editorial Advisory Board, the Innovation Group, the American Gaming Association and G2E, an excellent list of deserving winners was announced in September. This month, we feature 10 profiles of the winners. Each month hereafter, more profiles will be published until the 2017 class of 40 Under 40 is announced at G2E 2016, September 27-29, 2016. To be considered for the 40 Under 40 honor, applicants must first be nominated for G2E’s Emerging Leaders program when the call for nominations is announced in May 2016.

Global Gaming Business NOVEMBER 2015

The following is GGB’s 2016 Class of 40 Under 40. The five marked with (*) received the G2E Emerging Leaders Scholarships: 1) Brett Abarbanel, Head, Social & Recreational Gambling Research, UCLA Gambling Studies Program * 2) Joshua Anderson, Senior Manager of Corporate Surveillance, Cherokee Nation Entertainment 3) Sheila Bangalore, Assistant General Counsel, Aristocrat Technologies 4) Mike Bolsover, Chief Executive Officer, Silver Heritage Limited * 5) Chris Calitri, Slot Manager, Fair Grounds Race Course and Slots 6) Jessica Cipolla-Tario, Vice President of Marketing, Mandalay Bay and Delano (MGM Resorts) 7) Eian Counts, Vice President of Product Strategy, The Rainmaker Group 8) Felix Danciu, CEO, Elmcore 9) Trevor De Giorgio, Managing Director, Greentube Malta Ltd.; and Head of International Legal Compliance, Greentube Internet Entertainment Solutions GmbH 10) Daniel Duffiney, Surveillance Manager, Grand Traverse Resort & Casinos 11) Geoffrey Duncan, Director of Marketing, Penn National Gaming 12) David Farahi, Chief Operating Officer, Monarch Casino & Resort, Inc. 13) Ian Feldman, Executive Director of Strategy and Operations, Las Vegas Sands 14) Nicole Fields, Assistant Marketing Manager, Cintas 15) Chris Freeman, Security Director, Tropicana Evansville 16) DeJuna Frye, Gaming Agent Supervisor, Cherokee Nation Gaming Commission

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Regulatory Leader Leslie Tanyan Executive Director, Absentee Shawnee Gaming Commission eslie Tanyan was born and raised in Oklahoma City, and earned her B.A. from the University of Oklahoma in business administration and her M.B.A. from Oklahoma Christian University. In 2005, Tanyan began her career in the gaming industry with the Iowa Tribe of Oklahoma (ITO) as a gaming commissioner, and in 2009 she became the executive director of ITO Gaming Commission. In addition, Tanyan has worked at the Absentee Shawnee Gaming Commission and Seminole Nation Gaming Agency.

17) Joshua Greenberg, Content Lead, Incrediplay 18) Vernon Hill, Jr., Slot Manager, Shoshone Rose Casino 19) Andre Jackson, Assistant Director of Hotel Operations, Flamingo Las Vegas 20) Dave Jacoby, Chief Operating Officer, Lucky Dragon Hotel & Casino 21) Crystal Janvier, Researcher/Policy Analyst, Federation of Saskatchewan Indian Nations 22) Benjamin Koff, Vice President, Marketing, Golden Nugget Casino Resort-Lake Charles 23) Erica Kosemund, Director of Marketing Operations, Chickasaw Nation 24) Patricia Lalanda, Senior Associate, Loyra * 25) Jacob Lanning, Vice President, Strategic R&D and Sales Strategy, IGT 26) Seth Makowsky, CEO, Makowsky Restaurant Group * 27) Rosalyn Montero, Executive Administrator, Sycuan Gaming Commission 28) Danielle Parsons, Director of Field Operations, Joingo 29) Kahlil Philander, Director of Social Responsibility, BCLC 30) Brent Pinkston, Chief Operating Officer, Wind Creek Hospitality 31) John Policicchio, Senior Vice President of Marketing, MotorCity Casino Hotel 32) Rory Shanahan, Director of B2B Product Marketing, Scientific Games 33) Dan Shapiro, Director of Business Development, William Hill US 34) Kevin Sweet, Vice President of Slot Operations and Marketing, Cosmopolitan Las Vegas 35) Leslie Tanyan, Executive Director, Absentee Shawnee Tribe 36) Diana Ulloa, Consultant, ULAC Publicidad y Mercadeo 38) Niko Vittas, Vice President, Gaming Investment Banking, Bank of America Merrill Lynch * 39) Ronald Washington, Table Games Shift Supervisor, Eagle Mountain Casino 40) Michael Zhu, VP of Operations, Planning and Development, The Innovation Group

“By setting goals and the steps needed to accomplish them, young professionals can achieve their career aspirations.” Tanyan’s path in gaming has led her back to the Absentee Shawnee Gaming Commission, where she is currently executive director. “The fast-paced nature of gaming,” she says, was what originally made the industry attractive. She liked that there was something new to do every day, and there is never a dull moment. Following her time as executive director, she ran for tribal office and served the ITO as tribal secretary. Tanyan notes that the decision to run for tribal office had the largest impact on her career. The position itself bestowed a great deal of responsibility on her from the tribal people to ensure that the programs she oversaw were run with accountability and transparency. Her responsibilities were enormous, but during her time as tribal secretary she, along with her fellow Business Committee members, was able to accomplish a great deal. They renovated the existing Cimarron Casino, and built the new Ioway Casino and a new Travel Market with casino. Additionally, they increased their tribal assistance programs from revenue that was generated from the tribe’s enterprises for their tribal members. During this period, she worked with the general manager and chief financial officer of the casino, which gave her a better understanding of the operational side of a casino—knowledge that Tanyan utilized to become a better commission director. Tanyan is extremely proud of the progress she has made in the gaming industry, and believes that her ability to communicate and be eager to learn each area of the Gaming Commission enabled her to move up to the executive director position. Tanyan says she strives to create a positive atmosphere of teamwork to better protect the assets of the casino. For young and upcoming professionals who are looking to move up the corporate ladder, Tanyan’s advice is “learn and never give up.” “By setting goals and the steps needed to accomplish them, young professionals can achieve their career aspirations,” she says. “Your career path is like a business plan. You outline what you want and how you are going to achieve it, but just remember, sometime plans change, and having flexibility is important.” —Chris Irwin, The Innovation Group NOVEMBER 2015 www.ggbmagazine.com

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40 Under 40 Legal Eagle Soars Patricia Lalanda

Standing Up for Gaming Kahlil Philander Director of Social Responsibility, BCLC

Senior Associate, Loyra Law Firm atricia Lalanda has dedicated nearly a lifetime to progress the interests of the gaming industry in her home region of Europe, and globally, as a key member of the law firm Loyra Abogados. As the daughter of co-founder Carlos Lalanda Fernández, Lalanda has literally grown up in the gaming industry. She spent a portion of her childhood in the United States, in upstate New York, where she observed early tribal gaming expansion firsthand. She celebrated her 18th birthday at the famous Casino Madrid, and the rest is, as they say, history. Based in Madrid, Spain, Loyra is well-known for its historic role in gaming regulation and corporate law. The firm has paved the way for governments and gaming companies for over three decades in navigating the transition from traditional brick-and-mortar casinos to the internet and technologically progressive gaming formats of today. The company has provided a rich platform for Lalanda, and she has embraced the opportunity, becoming a true gaming industry leader. Having received her law degree from the prestigious Carlos III University of Madrid, and a master’s degree in intellectual property from the University Autónoma of Madrid, Lalanda’s success is no surprise. Loyra is most active in Europe and Latin America, where since 2010 Lalanda has formed concentrations in IP including trademarks, with a unique perspective on taxation and gaming industry implications. Sub specialties include internet gaming, fantasy sports and the role of IP issues in merger and acquisition transactions. Lalanda has also initiated a unique practice in virtual currencies, also with an angle on how such innovation may evolve within gaming platforms. Lalanda attributes much of her success to the true passion she feels for the work she takes on. “Every day, I do my best for one more day,” she says. In addition to her day-to-day activity at Loyra, Lalanda acts as a professor of gaming and virtual currencies at the University Autónoma of Madrid and in the IE Business School. She has also served in leadership positions including counsel to the Ideas for Progress Foundation, and gaming industry affinity groups. Her love for sports led her to being team captain for an inline hockey top division team, in a sport she played semi-professionally for 14 years. Lalanda resides in Madrid, and when she is not traveling to serve Loyra’s diverse client base she thoroughly enjoys traveling the world for new life lessons. —Michael Soll, The Innovation Group

Global Gaming Business NOVEMBER 2015

ahlil Philander is exactly the kind of person the gaming industry needs. His role as director of social responsibility for the British Columbia Lottery Corp. is the type of position which helps to further legitimize the gambling industry in the minds of people abroad. After receiving a bachelor’s degree in economics from the University of British Columbia, Philander went east, where he received an M.A. in economics from the University of Toronto. However, his path would be carved after moving to Las Vegas and receiving his Ph.D. in hospitality administration and management from the University of Nevada, Las Vegas. It was there he met Bo Bernhard, who is internationally known as a leading researcher in problem gambling and social responsibility in gambling. Although Philander knew he wanted to work in the gaming industry, it was Bernhard who inspired him to work in the field of social responsibility. Philander has a role which sees him helping shape new metrics for how the gaming industry evaluates a next-level, positive-play index. What that essentially means is that he is helping both the industry and government understand what it is that separates sessions of problem gambling from sessions of gambling for fun and within a person’s means. Currently, Philander is helping to develop play management tools to remind people when they are approaching certain dollar amounts in a gambling session, or sessions. The idea is that by showing people the dollar amounts in numbers, as opposed to stacks of clay chips, they will better understand where they stand financially, in the moment. He said there is nothing more important than “being able to understand consumer behavior and speaking intelligently” regarding the matters at hand. The program aims to help casinos re-evaluate performance, and how the performance will align with what the business wants to do. All programs created by the BCLC are certified by a third party, ensuring objectivity and transparency. Philander says he appreciates how heavily invested the BCLC is with social responsibility. When it comes to future goals, Philander said he wants to “continue to learn about the industry and its players. The industry is complex with its offerings and consumer base.” His main goal, however, is to “find ways gambling responsibilities can help customers.” —John Lukasic

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40 Under 40 Making the Market Erica Kosemund Director of Marketing Operations, Chickasaw Nation nce people know you are there to see them succeed, it “Ochanges the context of how you do business,” says Erica

Kosemund, director of marketing operations for the Chickasaw Nation. And it’s that insight and wisdom beyond her years which underscores why Kosemund was chosen for the 2016 Class of “40 Under 40” emerging leaders. Now responsible for all daily operations of the marketing department, Kosemund worked her way up through the ranks, starting as event coordinator for Riverwind Casino in Norman, Oklahoma. She moved through positions as player analysis supervisor and promotions coordinator for the casino, part of the Chickasaw Nation Department of Commerce. Most recently, Kosemund was client resources manager for WinStar World Casino and Resort, Riverwind Casino, Newcastle Casino, Bedré Fine Chocolate, boutique hotels, retail facilities and small business ventures and vendors. She assumed her current position in June, and works in the marketing division that serves all commercial properties, including gaming, for the Chickasaw Nation. Kosemund says she started out with a thirst for the entertainment and marketing industries. But even more, she says, “I wanted to work in a fast-paced, exciting environment where I felt I was making a difference.” Now, Kosemund believes that there is “nothing more fitting” than working in the tribal gaming industry. “Working in the gaming industry helped me better understand who we are, and how we serve Chickasaw citizens,” she says. “That experience opened my eyes and encouraged me to do even more.” Her mentors include her parents, whom Kosemund cites as providing the example of hard work, humility and perseverance. To help her understand what it takes to succeed, Kosemund explains that they “taught me through actions, not words.” She also identifies many others who have helped, including her current supervisor, Andrea Horner, executive officer of marketing; a friend and coach, Dr. Karen Goodnight; and two of her former supervisors, general managers Jack Parkinson of Riverwind Casino and Wayne McCormick of WinStar World Casino and Resort. Kosemund commends the Chickasaw Nation as a very progressive tribe. “We have been very fortunate to have longstanding visionary leadership within our tribal government,” she says. “We are a leader in tribal gaming nationwide, and one of the largest employers in the state of Oklahoma. We continue to expand and diversify our properties and products.” In all, says Kosemund, “What I’ve learned is that the relationships you form and the bond you make is the glue that holds projects and people together. Whether it is the trust your team places in your ability to lead or a new relationship you foster, the way you work with people is the foundation of what we do. To do that well is to understand how each person likes to be communicated with.” She believes opportunities are there for her and others. “The future is bright; women in gaming are accepted and have a seat at the table. I feel like we are just getting started with the great endeavors we have ahead. I want to be able to mentor those people with an interest in gaming just as I have been mentored, and work together through innovation and hard work to be the future of the industry. ” Her advice for others getting started in gaming: “Do your role, no matter the title, to the best of your ability, and give them more than they expect.” —Carolan Pepin

Global Gaming Business NOVEMBER 2015

Investing in the Future Niko Vittas Vice President, Gaming Investment Banking, Bank of America Merrill Lynch hen Niko Vittas attended the Wharton School of the University of Pennsylvania for his undergraduate degree in economics, his proximity to Atlantic City was, perhaps, just as integral to his career path as his studies at the prestigious school. “I probably went to Atlantic City more than I should have during my time at Penn,” jokes Vittas. His initial visits to the area were fueled by his enjoyment of gaming. As he continued his trips, however, he became interested in more than just playing cards. “The more I went, the more I became intrigued by the business operations, on the casino floor as well as at what went on behind the scenes.” Upon completion of his bachelor’s degree, Vittas’ interest in the operational side of the industry led him to join the management training program at Tropicana Resort and Casino. This program not only strengthened his passion for the gaming industry—it exposed him to a variety of additional industries with experiences that touched on the hotel, retail, dining and entertainment aspects of the casino resort.

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40 Under 40 “The management training program was truly a multi-industry experience,” comments Vittas. “I had the ability to cycle through a lot of departments, learning about everything from hotel management to player database analysis.” Tropicana also exposed Vittas to one of his first professional mentors, the late Dennis Gomes. “Dennis was a very impressive person. He was innovative, high-energy, and was great at building camaraderie within an organization,” explains Vittas. “On top of this, he was an integral part of the introduction of integrated resorts in Atlantic City.” Throughout his time at Tropicana, Vittas was drawn to finance. His interest in enhancing his financial skills ultimately led him to further his formal education, completing a joint J.D.-M.B.A. program at UCLA. During his time at UCLA, Vittas had the opportunity to complete internships with two gaming companies, Las Vegas Sands Corporation and Rush Street Gaming Management. While working with Rush Street, Vittas assisted with several transactional projects. He enjoyed the transactional work so much that he decided to pursue investment banking—first as a summer associate and then as a full-time associate for Barclays. Today, Vittas serves as a vice president in the Global Real Estate, Gaming and Lodging Investment Banking group at Bank of America Merrill Lynch. In this position, Vittas works on a broad variety of capital-raising and strate-

gic advisory assignments for gaming industry clients including large-cap multi-national companies, regional and single-site operators, Native American casinos and equipment suppliers, among others. “Investment banking provides the opportunity to work with a lot of different people and companies,” says Vittas. “It has allowed me to develop a broader knowledge base, and the transactional nature provides an exciting working environment.” Vittas’ passion for the industry has also led him to pursue a teaching role with Fairleigh Dickinson University’s International School of Hospitality and Tourism Management, where he serves as an adjunct professor of casino management. When considering the prospects for young leaders in the industry, Vittas believes the potential is great. “Gaming continues to represent a fascinating and exciting industry with a lot of great opportunities,” he says. His advice to the emerging leaders of today relates to his own diverse gaming background. “I think young people looking to get ahead in the industry should try to gain exposure to as many different segments of the industry as possible,” recommends Vittas. “This will serve you well… It will give you a broader perspective and will open up a variety of opportunities throughout your career.” —Michael Vanaskie, The Innovation Group

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40 Under 40 Otherworldly Michael Zhu Vice President, Operations Planning & Analysis, The Innovation Group ichael Zhu’s passion for the hospitality industry was ignited while he was a student ambassador, during his undergraduate education, at Peking University’s Joint International Study and Exchange Programs. His roles as an ambassador allowed him to interact with a varied set of stakeholders and leaders within the Ivy League schools, and other prestigious universities around the globe. The hospitality nature of the ambassadorship sparked his interested in the industry, which has continued to this day. Powered by the achievements in China and in his pursuit of career development on a global landscape, Zhu attended the School of Hotel Administration at Cornell University, where he earned his M.B.A. in hospitality management. With his cultural background based in China and philosophical understanding of the leisure industry from his undergraduate studies, Zhu found gaming to be such an exceptional sector that he has been focusing his professional enthusiasm on the industry. Zhu’s journey in the gaming industry began with the Las Vegas Sands Corp., where he implemented his analytical and critical thinking skill set in strategic planning, business analysis, financial modeling and operational optimization. His philosophical way of gaming analysis was reflected in the opening of several integrated resorts (IRs) in the Asia-Pacific region, including Sands China’s Cotai IR properties in Macau and Marina Bay Sands in Singapore. The critical thinking and professional experience had served Zhu well when he accepted a position at the Innovation Group in early 2014. Based in the firm’s Denver Office, he is currently vice president of operations planning and analysis, and has been utilizing his 15-plus years of previous work experience in related sectors to become an invaluable member of the team. Given his unique perspective, understanding and experience in the AsiaPacific markets, Zhu’s main focus has been on large-scale IR development and operations in the region—an outstanding growth sector for the Innovation Group. Since joining the company, he has stepped into a leadership role in the Denver Office and has brought his operational and financial expertise to an analytical company, allowing the Innovation Group to offer more diverse services to its clients. “Interest makes you enjoy what you do, but passion enables you to make things better” is what Zhu would like to share with fellow professionals in the gaming industry. He has particularly been passionate about the IR competitive atmosphere in Asia and the IRs with unique ethnic background and cultural elements. The philosophical pursuit of gaming development and operations enable Zhu to continue his knowledge and expertise in the international markets for the Innovation Group. —Chris Irwin, The Innovation Group

Global Gaming Business NOVEMBER 2015

Clothes Make the Man (or Woman) Nicole Fields Marketing Manager, Cintas Corporation icole Fields is currently a marketing manager at Cintas Corporation, a leader in providing the gaming industry with uniforms and apparel. She has been with Cintas for the last two years managing global and national accounts, executing marketing projects and initiating advertising campaigns targeted to the decision-makers in gaming and hospitality. Fields began her career in the gaming industry right out of college. She took a leap of faith and accepted a role as an innovative marketer at Caesars Entertainment, one of the largest gaming operators in the world. Among her proudest achievements at Caesars was helping with the rollout of the newly re-launched customer loyalty program Total Rewards, and the grand opening of the Horseshoe Cincinnati, one the largest casinos in Caesars Entertainment’s portfolio. Fields’ experience in the gaming industry began with an operator, and she left Caesars to join Cintas on the vendor side of the industry to expand her knowledge. This move exposed her to all aspects of the gaming industry, and Fields enjoys working with a broad network of industry partners. After graduating from the Art Institute of Chicago with a bachelor of fine arts degree, Fields knew this was the only industry in which she wanted to build her career. In addition to her job at Cintas, she is a co-chair of WAVE (Women Adding Value Everywhere), a committee member of Global Gaming Women, and winner of multiple industry honors. Asked to share her advice with emerging leaders, Fields doesn’t hesitate: “Get involved with associations, and networking is the key to success.” Fields attributes her success to the very supportive network of peers and leaders in her company. On top of that list is her mentor Karla PerezLarragoite, national director of gaming at Cintas. “Karla has taught me good leadership takes practice.” Fields puts that advice to practice every day. One of her strongest leadership attributes is her ability to network and build long-term relationships. This skill has proven an invaluable asset to her employers, as she knows how to create new business opportunities. “Nikki is someone to watch for sure,” says Perez-Larragoite. “What she has done for our division is amazing. She is creative, driven, and inspires me every day.” While Fields is still starting out in her career, she looks forward to growing in the industry and using her marketing expertise to create lasting brands, bring a new generation of consumers to gaming and make an invaluable contribution to her company. — Jackie Shahin, The Innovation Group

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Roundabout Michael Bolsover CEO, Silver Heritage Ltd. here is a long history of land-based gaming executives taking the leap to iGaming. After all, if you understand how gambling works person-to-person, it’s not such a leap to following the progression online. Michael Bolsover, however, went the other way. Born in Hong Kong and schooled in London and the U.S., he planned to spend a career trading equities. Instead, he joined Victor Chandler, the trailblazing iGaming company, in 1999. Soon, he decided to bring the British sports betting model to the Asian market, where it was only legal in licensed casinos. “The idea,” he says, “was to establish this model and expand it throughout Asia.” A funny thing happened along the way, however. “I bumped into Tim Shepard, who independently had come to the same conclusion as me,” he says. “Tim had a similar background in online wagering on dog racing and horse racing. He was about three months ahead of me, as he had already established a group. But as soon as we met, we realized the synergies and the strengths behind pooling our efforts, so we joined together.” And it wasn’t long before Silver Heritage was born, quickly pivoting to landbased gaming on the Cambodia-Vietnam border, bringing online gaming into the land-based environment, with sports lounges in Cambodian and Laotian casinos. “Based on the knowledge we had of sports wagering and risk management, we quickly moved into the provision of slot machines and automated table games. So between 2004 and 2010, we built up a solid understanding of the business, with over 1,000 units in six or seven countries.” Leasing space at casinos owned by others wasn’t very gratifying, says Bolsover. Since then, Silver Heritage has expanded to operate a casino in Vietnam and a casino in Kathmandu, Nepal. “After 2010, we really focused our attention to becoming an owner/operator,” he says. “So now, we operate two casinos, and we’re building a third on the border of India and Nepal.” Bolsover says Silver Heritage has developed a broad base of Western-standard employees who help to manage the casinos in the various companies, in addition to hiring locals. “They play a huge part in the development of the casinos,” he says, “and we have tremendous loyalty among our employees.” With its Nepal activities, Silver Heritage is blazing a trail in the Indian market. “It’s a tremendous market,” he says. “Just last week, we had over 400 people for the first time in our Kathmandu casino, the first time that happened in a casino with just 22 tables.” Bolsover’s rapid rise through the industry isn’t a mistake. He says hard work and dedication played a huge role in his advancement, along with an entrepreneurial spirit. He says he followed simple rules, however, in making his decisions. “Make sure you have a strong business partnership,” he says. “Always make choices that are based upon a long-term view. There are no quick fixes. Know your market, know your partners and work hard.” —Roger Gros

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40 Under 40 Malta Master Trevor De Giorgio Managing Director, Greentube Malta, Ltd. revor De Giorgio got into gaming by way of law, and by way of a European law master’s thesis at the University of La Sapienza in Rome that dealt with changes in European gaming law—including key judgments that allowed operation across Europe for any licensee of one European jurisdiction. The changes led to expansion of the online gaming business in De Giorgio’s native Malta, which is what led him back to the island first as a regulator, and ultimately to his current job as managing director, Malta, for Greentube, the online gaming arm of Austrian gaming giant Novomatic Group. De Giorgio joined Greentube with impeccable timing, three months before Novomatic acquired the online gaming system supplier in 2013. Since then, he has grown Greentube Malta from five people to 40, servicing both B2B and B2C business. At the same time, he has served as head of compliance for the Greentube Novomatic subsidiary—a capability De Giorgio brought to his position from the regulatory side. After receiving his M.A. in European law in Rome and his LL.D. from the University of Malta, De Giorgio was working in a Malta law firm when he was named to the Maltese Lotteries and Gaming Authority (LGA), where he set up an E.U. affairs division within the industry regulator. De Giorgio drafted the LGA’s position on a number of European Issues, remaining at the agency a year and seven months before accepting the Greentube position. (“As I was told, I moved to the ‘dark side’ and joined an operator,” he laughs.) As Greentube’s managing director for Malta, De Giorgio, 35, oversees the company’s development not only on the online side, but in relation to the Novomatic land-based content business as well. “We supply Novomatic-branded content, which we deliver online to a number of our clients who are Malta licensees—but also, we use the current regulatory structures in Europe, whereby we get licenses to offer the games ourselves directly on a B2C level,” he explains. “We offer our product in Italy with our Star Vegas brand; we’re going to be offering it in Spain and other jurisdictions as well.” De Giorgio says he is embracing the challenge of being part of the enormous operation that is Novomatic. “Almost every day, there is something new to do,” he says. “When you work for a company that is owned by Novomatic, we’re so big that challenges come from a number of different areas. We’re the online part. Sometimes it’s a land-based project. There could be compliance issues related to the overall operation of the group. If there is an online issue, sometimes I get involved. So, that’s given me another view to the sector—I had been exclusively online.” He adds that his legal and regulatory background have helped Novomatic navigate the changing European regulatory landscape—as he says, “trying to find the market where regulation makes sense, to go in an operate—that’s part of my job.” As far as mentors, De Giorgio credits Joe Borg, former LGA chief regulatory officer, and the CEO of the regulator, Reuben Portanier. Borg “gave me free reign to get my job done, but he let me do it my way, which is brilliant,” De Giorgio says, adding that Portanier “had the same sort of mentality.” At Greentube, De Giorgio gives credit to Novomatic COO Eberhard Dürrschmid, the CEO of Greentube when he arrived, and Novomatic CEO Thomas Graf. “I wouldn’t be here if it wasn’t for (Dürrschmid), for the company, and for Novomatic, especially Thomas Graf, for believing in me.” These days, De Giorgio splits his time between Malta and his young family (wife Adela and yearand-a-half-old daughter Giuliana), and Vienna, where he spends a week per month working on compliance issues for Greentube. For other emerging leaders entering the gaming industry, De Giorgio offers two pieces of advice: “One my father gave me—If you make a mistake, own up,” he says, “because if you try and hide it, it’s only going to become bigger. Being honest pays off. Secondly, you work hard. Work hard, do your job, get the results. “And,” he adds, referencing that young family, “don’t ever forget where you come from.” —Frank Legato

Global Gaming Business NOVEMBER 2015

Singapore Slinger Ian Feldman Executive Director of Strategy and Operations, Las Vegas Sands Corp. an Feldman’s first introduction to the gaming industry was through an exchange program in college that allowed him to study and live in Singapore. His time there coincided with the beginning of the city-state’s decision to legalize integrated resorts (IRs). The unique political process that led to Singapore’s IR decision caught Feldman’s attention, and he decided to write his senior thesis at Claremont McKenna College about the politics of introducing casinos into Singapore. After graduating from CMC, Feldman started his first job in the investor relations department at Las Vegas Sands Corp., not coincidentally one of the winning bidders in Singapore. “Since I was going to intensely study one topic for my thesis, I decided to focus on an area that I could see myself pursuing as a career,” Feldman says. “I ended up using that thesis as my jumpingoff point into the industry, which opened a door for me to get my first job at Las Vegas Sands at the same time the company was investing billions of dollars to build one of the IRs in Singapore.” At the time he started with LVS in 2008, the company was going through a challenging period during the global recession, and like many other companies, LVS went through a difficult recapitalization. “It was one of the best on-the-job capital-markets educational opportunities possible,” Feldman notes. But Las Vegas Sands emerged from the recession facing one of the biggest opportunities in Asia

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for perhaps any company in the world. Feldman’s responsibilities, at the time, included introducing the global investment community to the Asian gaming industry, which was relatively undiscovered by investors. “One of the real joys of my time in investor relations was taking investors to our operations in Asia,” he says. “Many of them were making their first trip ever to Asia, so to be part of their educational process, and to see their amazement at the level of activity in Asia, was quite rewarding.” Through his first six years at LVS, Feldman continued to grow within the company. Last year, he transitioned to become the executive director of strategy and operations. Reporting to the president and chief operating officer, Rob Goldstein, in his new role, Feldman touches multiple departments and gets involved with special projects for the company. On any given day, he is involved in evaluating issues relating to the operations of any one of the company’s eight properties, while also managing multiple new development opportunities. At this early point in his career, Feldman feels very lucky to be in the position that he is in—he credits his tenacity and willingness to work on projects that others might shy away from. The drive to work on any project while bringing a diverse background has provided Feldman with the unique ability to see the big picture while being able to dig into the details. Along his brief but distinguished career path, Feldman has worked with great mentors and advisers. He credits a government professor at Claremont, Fred Balitzer, as his most tenured mentor. “Early in my time at Claremont, Dr. Balitzer pulled me aside one day and asked me to work alongside him throughout my undergraduate studies,” Feldman recalls. “During that time he was instrumental in my professional development, and importantly, he gave me my first opportunity to travel to Asia. To get that type of support at a young age was very impactful for me.” Feldman has stayed close in touch with his mentor and continues to seek his advice and guidance. In addition to finding a strong mentor, Feldman says other up-and-coming people in the industry “should continue to develop their intellectual curiosity about the business, but also the greater operating environment. It is important to understand the entire picture of any market or business—plus, it allows you to have conversations with superiors that go beyond work-related topics to help form stronger relationships.” —David Rittvo, The Innovation Group

1 9 0 0 A T T O R N E Y S | 3 8 L O C A T I O N S W O R L D W I D E˚

Greenberg Traurig Germany Opens its Doors International law firm Greenberg Traurig, LLP continues its strategic expansion with the addition of a fourth European office in Berlin, following openings in London, Amsterdam, and Warsaw. The inception of our German office will lead to an even stronger Global Gaming Practice, with several of its award-winning legal professionals bringing wide-ranging experience in the gaming realm. In addition to expanding the Gaming Practice, the Berlin attorneys will be supported by GT’s reach of approximately 1900 attorneys in 38 locations worldwide. Dr. Henrik Armah Partner/Shareholder

Dr. Christoph Enaux Partner/Shareholder

G R E E N B E R G T R AU R I G , L L P | AT TO R N E YS AT L AW | W W W.G T L AW.CO M The hiring of a lawyer is an important decision and should not be based solely upon advertisements. Before you decide, ask us to send you free written information about our qualifications and our experience. Prior results do not guarantee a similar outcome. Greenberg Traurig is a service mark and trade name of Greenberg Traurig, LLP and Greenberg Traurig, P.A. ©2015 Greenberg Traurig, LLP. Attorneys at Law. All rights reserved. Contact: Martha A. Sabol in Chicago at 312.456.8400. °These numbers are subject to fluctuation. Greenberg Traurig’s German office is operated by Greenberg Traurig Germany, an affiliate of Greenberg Traurig, P.A. and Greenberg Traurig, LLP. 26287

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Tribal Gaming’s

Millennial Challenge Diversifying the offerings of tribal gaming enterprises may help improve business By Dave Palermo

merican Indian tribes currently investing millions of dollars upgrading and expanding hotel-casinos in an effort to cope with a slow-growth gambling market are now being told the upcoming generation will not be enamored with the slot machines on their casino floors. Tribal casino industry officials are hoping skill-based features replicating arcade gaming will make slot machines more appealing to the newer generation of gamblers. Tribes are also targeting non-gaming entertainment and food and beverage options to younger customers. Recent studies, including polling by equipment manufacturers and the American Gaming Association, the industry’s trade group and lobby, indicate millennials may have a lower propensity to gamble than their parents and grandparents. And experts believe the 350,000 slot machines now found in most tribal casinos will not be their game of choice. Millennials, according to a flood of newly released surveys and research, are more interested in social internet and skill-based games such as poker and fantasy sports, wagering that can be conducted on their smartphones. Younger gamblers also tend to gravitate to table games, such as blackjack, which are labor-intensive and often generate less than 10 percent of a tribal casino’s revenue.

real dilemma.” “Tribes are relying on a demographic that is dying right now,” says Jana McKeag, president of Lowrie Strategies of Alexandria, Virginia. “Tribes need to reach out to the millennials, the next generation. They need to think far enough ahead.” Statistics on the wagering propensity of millennials are catching tribal governments and their economic development agencies somewhat by surprise. Many have only recently made millennials a topic of internal strategy sessions. “There is a lot of dialogue taking place on the topic of millennials, believe me,” says Janie Dillard, executive director of gaming for the Oklahoma Choctaw Nation, operators of seven casinos and a number of slot outlets. “That’s the big issue. “It’s no longer just granny or mom sitting at a slot machine. Those people are dying off.” “That’s exactly the conversation we’re having internally, right now,” Mike Goodrich, general manager of the Potawatomi Hotel & Casino near Milwaukee, Wisconsin, says of millennials. “We’ve been having that conversation for what, six months now?” “This has just come up in the last couple of months,” says Jamie Stuck, vice chairman of the Nottawaseppi Huron Band of Potawatomi, owners of FireKeep-

Mixed Millennial Messages The millennial gambling profile poses a challenge to an industry largely profiting from post 45-year-olds willing to pump their discretionary income into traditional slot machines that contribute 90 percent of a tribal casino’s income. That’s beginning to change. “Our customer base is dying. Everybody knows it. And we don’t know what we’re going to do to appeal to the generation that grew up playing Atari,” says Randy Carnett, consultant to Ortiz Gaming and principal in Pineapple Ventures, Ltd. “It’s a 34

Global Gaming Business NOVEMBER 2015

“Obviously, we’re a gaming business enterprise. But I’m trying to focus on job creation and revenue creation.” —Derrick Watchman, CEO, Navajo Nation Gaming Enterprise

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The new Firekeepers hotel in Battle Creek, Michigan, includes high-end meeting and convention space (boardroom below) and a soaring hotel lobby

ers Casino Hotel near Battle Creek, Michigan. “We’re looking at all our options.” “In another two decades we’re really going to have to rethink our whole gaming product,” says Derrick Watchman, CEO of the Navajo Nation Gaming Enterprise, operators of four reservation casinos, including the flagship Twin Arrows Casino Resort near Flagstaff, Arizona. “I’m just gearing my team up to make sure we keep our eye on the marketplace. When we look at our casino conversions and machine change-outs, I want to make sure we look at what’s the latest and greatest.”

Time to Plan In some respects, the focus on millennial gamblers in Indian Country is coming at an opportune time. Tribal governments are spending hundreds of millions of dollars expanding and renovating casino and hotel facilities in an effort to bolster a highly competitive but lethargic gambling industry that for many indigenous communities is a primary source of services to their citizens. After nearly two decades of double-digit growth since passage of the Indian Gaming Regulatory Act (IGRA) of 1988, yearly revenue increases from 2010 to 2013 averaged 1 percent to 3 percent, leveling off at about $28.5 billion. The slow growth has constricted revenue for government services. Studies indicate that millennials are likely to spend more on food, booze and entertainment than they drop at the tables and slot machines. “More than ever before, casinos are making enormous investment in nongaming amenities such as clubs, spas, restaurants and shows,” AGA spokesman Justin Zink told Elaine S. Povich of Stateline.org. Unlike commercial casinos generating profits to fatten shareholder portfolios, tribes see hotels and additional amenities as a means of evolving their casinos into broad-based hospitality and tourism enterprises better equipped to ensure a more sustainable source of government revenues. “Tribes are looking at more amenities,” James Klas, founder and principal of Klas Robinson Hospitality Consulting, says of the growing evolution of tribal casinos into what are termed fully integrated resorts. “This means conference space, water theme parks, movie theaters and bowling alleys,” Klas says. “Retail is finally moving to the forefront.” Tribes are looking hard at resorts on the Las Vegas Strip, which generate upwards of 65 percent of their revenue from hotel accommodations, restaurants, entertainment, retail sales and other non-gambling amenities. Only about 11 percent of tribal gambling industry revenue nationwide is coming from off the casino floor. Tribes are increasingly using bands, showroom and entertainment features to target younger consumers. Tribes are also integrating social gaming web-

The Potawatomi Hotel & Casino includes the Northern Lights theater (above) and other non-gaming amenities

NOVEMBER 2015 www.ggbmagazine.com

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The Navajo Nation’s Twin Arrows casino hotel, just east of Flagstaff, Arizona, is just a part of a grand master plan that will incorporate gaming and many other Navajo business enterprises

sites with the land-based operations to draw new and younger customers to the brick-and-mortar facilities. “The trend I’m seeing is the creative use of facilities and the social media to reach out to new and younger market segments,” says Steve Rittvo, chairman and CEO of the Innovation Group, an international gambling and hospitality consulting and management company. “You’ve got to reach down to a younger demographic. The facility has to be a little more club-centric and a little less baby boomer-resurrection entertainment. You’re not seeing the old bands as often.”

Upgrading Properties The Potawatomi bands of Battle Creek and Milwaukee are two of dozens of tribes that have recently completed new and expanded hotels in an effort to drive more business to their casino floors. The FireKeepers hotel and events center opened in 2012 with 242 rooms, drawing guests from a region extending from Detroit to Kalamazoo. Forest County Potawatomi opened its 380-room hotel, spa and Northern Lights Theater last year. Both properties have restaurants and convention and meeting room space. With the leveling off of the gambling market, most of the work for the industry’s architects is with casino expansions, hotels and non-gaming amenities. Few tribes are razing their inaugural casinos and opting for new construction, preferring instead to renovate or expand the existing facilities. “Tribes are prudent,” says Nick Schoenfeldt, vice president of Thalden Boyd Emery Architects. “They never want to tear anything down. Once they build it, they want to keep it. “Market saturation is starting to occur. So the effort now is how to make 36

Global Gaming Business NOVEMBER 2015

the place unique, to design something that relates to the tribe’s heritage.” Tribes are astute in their non-gaming investments, opting to do projects such as covered parking and restaurants that easily translate to revenue from the casino floor rather than golf courses and nightclubs which may seem attractive but in many cases don’t help the bottom line. “Tribes have learned you’ve got to spend the money where it counts,” says Dike Bacon, a partner in Hnedak Bobo Group architects. “The investments are extremely strategic. You’ve got to spend the money in the right place to get the best return.” But some can’t resist the flash. “We’ve argued for a long time about the importance of adequate parking,” Klas says. “It’s still a tough sell. Flashier stuff often comes out first. “In Indian Country there is not a settled opinion on things. Tribes are fairly cautious. They don’t usually go leaping into things.”

Moving Beyond Gambling Tribal governments also are accelerating efforts to use resources from gambling to diversify their business portfolios far beyond gambling. It was, after all, the congressional intent of IGRA for tribes to use gambling resources to strengthen governments and build diversified economies. Navajo’s Twin Arrows Resort Casino in rural Coconino County, on Interstate 40 halfway between Flagstaff and Winslow, is envisioned as the anchor for the Outlook at Glittering Mountain, a 70-acre residential, business and entertainment development.

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“In essence, we’re looking at a master-planned community,” says Watchman, pooling the resources of Navajo government enterprises dealing with utilities, housing, shopping centers and travel plazas. Navajo cattle ranches raise beef for the Twin Arrows restaurants. Retail shops are stocked with jewelry, pottery and blankets produced by Navajo artisans. “Obviously, we’re a gaming business enterprise,” Watchman says of Navajo Nation Gaming. “But I’m trying to focus on job creation and revenue creation,” building a sustainable economy for the massive reservation that spans Arizona, New Mexico and Utah. The tribe’s three other casinos in Gallup, Shiprock and Farmington, New Mexico, may also serve as anchors for hotels and other amenities. The Forest County, Pokegon, Gun Lake and Nottawaseppi Huron Potawatomi bands operating casinos in Michigan and Wisconsin are planning to combine their gambling resources on non-gaming development projects. “We’re corroborating with other Potawatomi EDCs (economic development corporations) to see how we can all work together to diversify our

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“The trend I’m seeing is the creative use of facilities and the social media to reach out to new and younger market segments.” —Steve Rittvo, chairman and CEO, The Innovation Group

economies,” Stuck says. “We’re at the blueprint stage. We’re just now having our preliminary meetings to discuss our options.” The Oklahoma Choctaw Nation employs 6,000 workers in manufacturing and management services companies along with its seven casinos, 13 travel plazas and 12 smoke shops. The tribe is looking to branch out further with lumber businesses, grocery stores and franchise restaurants. The Choctaw’s flagship hotel casino in Durant recently expanded to 660 hotel rooms with a spa and wellness center, and just put the finishing touches on “The District,” an entertainment venue with theaters, bowling, laser tag and a sports bar. “We’re trying to drive more weekday traffic with that,” Dillard says of the resort, which draws visitors from the Dallas-Fort Worth, Texas, corridor. “We’re packed full on weekends.” “We needed to offer more to patrons of all ages, not just the millennials. We want to give people a reason to come to Durant. You can spend a whole night with us. You can spend a whole weekend with us. Or you can spend just a few hours with us.” The Choctaw Nation may add yet another 500 rooms to the hotel, and is contemplating a shopping center. “We’re definitely moving on with our master-planning,” she says. “We want to move in a major retail development.”

Rethinking the Slot Floor Tribes are also contemplating a major transformation of the typical casino floor, introducing more social interactive and skill games to appease tech-savvy millennials. Recent studies by the Association of Gaming Equipment Manufacturers (AGEM) show millennials are not interested in devices equipped with random number generators, or RNGs. Slot wagering in Nevada has fallen 23 percent from an all-time high of $138 billion in 2006. “Young people are going to casinos,” gambling attorney Dan Reaser of Fennemore Craig told the Las Vegas Review-Journal. “They’re just not playing gaming devices.” A few devices incorporating elements of skill and chance intended to jump-start the machine industry were unveiled at the September G2E conference and trade show. Others are being devised by teams of technicians, mathematicians, designers and sound experts with the industry’s top manufacturers. “We have a specific group within our gaming studios full of talented folks with the assignment to look at that skill-based space and millennials and come up with concepts attractive to the generation,” says Knute Knudson, vice president of International Game Technology. “I’d be surprised if all our competitors don’t have similar groups.” Tribal governments since the late 1980s have been on the cutting edge of slot machine innovations such as multi-denomination devices and cashless gaming. Some believe Class II electronic bingo machines are more conducive to skill-based gaming than RNG devices. About 45 percent of the 9,800 electronic slot machines at the Choctaw casinos, travel plazas and other gambling venues are Class II devices that have 38

Global Gaming Business NOVEMBER 2015

undergone major technological advancements over the last decade. “We have the most creative floors and the most vibrant floors anywhere,” Dillard says. “We’re very unique.” Knudson and others envision a revolution on the casino floor. “Millennials have grown up with the use of social media and connectivity,” he says. “While I’m not sure how it will look in terms of hardware … the casino floor in the future will incorporate those concepts of social media and connectivity.” “With the millennials it’s all social,” Dillard says. “They want to play in groups and play against each other. They want to take pictures of each other on games and put it out on social media. “I see the floors changing so much. I don’t see straight lines with just slots. There’s going to be some banks of slots, but you’ve got to be creative with the floors. “There needs to be more excitement,” Dillard says. “There needs to be more lounging areas where people can have their social interaction, where they can play their games against each other. There has to be other games. Not just slots.” The transition will not be sudden. Casino management is still targeting a niche satisfied with the games on the floor. And some slot operations people are averse to making abrupt player marketing changes to accommodate a group they believe is not lucrative. “Millennials don’t have any money,” groused a slot director at G2E who asked that he remain anonymous. “We listen to our guests, and we deliver what they want,” Goodrich says. “Regardless of what you and I think, it’s our guests who come in and pay our bills for us.” “I think we have a decade before we get a significant millennial population in the casino,” Stuck says. “My customer base—as it is throughout most of the country—is 40 to 60 years old. I’ve got a lot of people who still like the older machines.” The slot evolution will be gradual. “You and I are going to see the beginnings of this transition,” Carnett says. “This is going to play out over the next 10 years. It’s going to take a while for the industry to understand what the goals should be—they’re pretty fuzzy now—and then trying to work toward them. It’s going to be really, really challenging.” “I do believe millennials are an age group we all have to work with,” Dillard says. “We all have to figure them out. I want to know what makes them tick.” “Tribal leaders have a fiduciary duty to be innovative, to be proactive, to understand the business environment,” Knudson says. “They need to know where their business is going and what outside influences are impacting their business. “In any business environment—I don’t care what the business is—one cannot remain static. You always have to be innovative.”

James H. Dennedy President & Chief Executive Officer

To Our Tribal Gaming Colleagues and Friends, Agilysys has a long and successful relationship with Native American Casino Resorts. For over 15 years, we’ve enjoyed serving your needs through our industry-leading Property Management Systems, Point of Sale, and Inventory Management solutions; and our recently introduced payment, table management and bookings, and analytics solutions. The gaming segment of hospitality is a critical part of our business, and serving tribal gaming is key to our future. To be your trusted business partner, it is important for us that you know of our commitment to supporting your business, understanding the importance of your business to your communities and respecting the sovereignty of your nations. Through our participation and sponsorship of NIGA, TribalNet and OIGA we have supported your efforts to demonstrate the positive impacts of Indian gaming on tribal and nearby communities. Many nations have engaged and entrusted Agilysys with their hospitality solutions needs to help them successfully grow and manage their business. Expanding our tribal gaming business is an important executive initiative in our company, and we would like to meet with you to discuss how we may be the best solutions provider for your needs and express our commitment to gaming, tribal gaming and the support of your communities. Please contact Jen Brown, 770-810-6007 or Jen.Brown agilysys.com, to schedule time with our leadership team. You can count on Agilysys to stand beside you as a trusted business partner and friend. Very Respectfully,

James H. Dennedy President and Chief Executive Officer

Jim Walker Vice President – Sales

Darren Student Director - Gaming Sales

1000 Windward Concourse, Suite 250 • Alpharetta, GA 30005 • 877.369.6208 • www.agilysys.com

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Marketing affiliate sites like iGamingPlayer.com, OnlinePokerReport.com, PlayNJ.com and NJOnlineCasinos.com steer players from their sites to legal online casinos in New Jersey

Legal online gambling in the U.S. has yet to hit the jackpot. More targeted marketing could help it advance to the next level.

net Gains

By Marjorie Preston

hen New Jersey legalized online gambling in November 2013, Governor Chris Christie predicted the digital games would gross $1 billion in the first 12 months, for $150 million in new taxes for the state. As everyone knows by now, Christie was overly optimistic—by about $880 million. The first year’s returns were underwhelming to say the least, with a statewide take of $111 million. Nationwide, in the three states where iGaming is legal (New Jersey, Nevada and Delaware), the total for those first 12 months was an anemic $135 million. Every new industry goes through growing pains. Two years in, with a lot of lessons learned and a mountain of new consumer data, iGaming marketers are refining their approach to strengthen the returns. They have a big incentive. According to a 2013 report from the American Gaming Association, online gambling is a $33 billion global market, of which $3 billion comes from bets already placed (albeit illegally) in the U.S. That same year, analysts at H2 Gambling Capital said the legal stateside iGaming market could be worth about $9 billion by 2018, especially if big states like California, Pennsylvania, New York and Illinois get in the game. In April of this year, Morgan Stanley predicted the online gaming market in the U.S. could be worth $2.7 billion by 2020—a conservative estimate, down by half from the firm’s September 2014 valuation. It’s still guesswork at this point. But one thing seems sure: iGaming in the United States is a sleeping giant. Marketing is the persistent nudge, trying to wake it up.

Global Gaming Business NOVEMBER 2015

Moving Targets In the beginning, online casinos took a blanket approach to marketing, says Seth Palansky, vice president of corporate communications for Caesars Interactive Entertainment, owner of the venerable World Series of Poker brand. “The first goal was to raise awareness that the activity even exists,” he says. “We did bus stops, highway billboards, airport lounges, TV advertising, radio, newspaper and of course, digital internet marketing. We ran the gamut initially.” That scattershot approach evolved as the organization piled up data on the behavior and preferences of existing and potential online customers. “Unlike in a land-based environment, here you really have a digital record of everything that happens, which is very helpful in terms of marketing and getting to understand your customer,” says Palansky, former communications honcho for the NFL Network. “With a history from two years of this offering, along with the patterns we know from our land-based and Total Rewards database, instead of catch-all marketing like billboards or TV spots, we can really drill down to try to reach where we know our customers are.”

“Taking the time to learn and measure is vital to sustaining a successful platform.” —Seth Palansky, VP of corporate communications, Caesars Interactive Entertainment

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Affiliate marketers—who are active in countless industries including health care, online retail, education and online dating— are a good deal for casino operators for a simple reason: their compensation is based purely on results.

For example: “If customers that live in Pennsylvania travel to our Atlantic City properties six times a year, we know that. We also know what games they typically play, so we target-market them based on their favorite games, making them aware of the (online) opportunity when they’re inside New Jersey borders.” Online marketing also reaches out to recapture inactive players. “Say you have a working mother who hasn’t played since June—she’s had the kids out of school all summer, and between vacations and camps and the change in schedule, she’s been dormant for a couple of months. If she’s a slot player, we’ll try to re-engage her with offers tied to her favorite games.” Of course, the promotions work both ways: An online poker player would likely get spot promotions for land-based tournaments. Thanks to marketing that is much more data-informed and analytically driven, players who like mixed games as opposed to no-limit hold ’em might not be targeted “until we’re running a mixed-game promotion that’s more geared to their usage,” says Palansky. “We don’t quite drill down to the individual,” he adds, “but you get a sense of what works when you get a response rate of 38 percent activity (on one promotion) and reach 6 percent with the next one. You start to realize over time what players perceive as better value and what’s more interesting to them, so you can refine your offers and promotions.” “Taking the time to learn and measure is vital to sustaining a successful platform,” perhaps even more so in Atlantic City, where “visitation is much higher than in Las Vegas,” says Joe Lupo, senior vice president of operations at the Borgata in Atlantic City. “BorgataPoker.com and BorgataCasino.com started from ground zero nearly two years ago, and have seen an increasingly steady uptick in popularity, which we expect to continue as more games come online.”

Learning Curve Perhaps surprisingly, there’s still an educational element to the marketing of online games. “Operators have invested a lot of money into advertising their brands and ensuring that people understand this is safe and legal, because not everybody is aware of that,” says Itsik Akiva, iGaming expert and founder of the Boston-Based Headway Consulting. The main message, he says, is the ease and immediacy of play. “This is what we saw in the first two years—operators trying to get people to experience this, without opening their wallets, to see how quick and easy it is… We show you the offer and the product, we show you that you can access this from digital devices, practically anywhere. And we try to point you to act immediately by registering, playing for free or making a deposit.” Free offers “were more common around launch,” he says. “Some operators are moving on to other types of offers, but you can still find $10 free play, $20 free play, or offers for free spins that allow you to actually win a little money without making a deposit.” Concerns about online safety and security, as well as resistance to Big Brother-style invasions of privacy, may be stopping some people at the gate. “The registration process is, I would say, slightly more intrusive because of the need to include your Social Security number,” says Akiva. “But it’s all

with player security and the integrity of the games and services in mind. Even so, not everybody is willing to enter their Social Security number.” Another lesson learned: the customer base for online games may hew pretty closely to that for land-based games. In other words, digital games may not be the honey that will catch those swarms of elusive millennials— which leaves the gaming industry as a whole with the same old nagging problem: how to create a new generation of enthusiastic patrons. “Operators hold those statistics very close to their hearts,” notes Akiva, “but I will say that online casinos are more appealing to people from their mid-30s up to their mid-50s and even 60s, both male and female. They play different games, but pretty much it’s a 50-50 split generally between male and female. This is where most of the activity is. I don’t think younger people are playing that much, and they don’t present as much of a significant audience for online casinos.” He says young people “feel less of a thrill playing real-money games like slots. There are obviously people in this age group that do enjoy that, but I don’t think they adopt it as much as they adopt other online entertainment like fantasy sports or even social games. The more valuable and loyal players are still a bit older.” While poker tends to skew young and male, Palansky says, “the typical slots player is still sort of a middle-aged female. A blackjack player tends to be a middle-aged male. It kind of varies by game type, but our casino offerings though CaesarsCasino.com and HarrahsCasino.com have a pretty broad base of offerings that can reach all demographics 21 and above.”

The Role of Affiliates Unlike new-to-market competitors and European operators who are less well-known in the U.S., Caesars Interactive Entertainment has a famous name, a long history and a massive 50-million member database of potential online customers. Even so, in July it enlisted the services of an affiliate marketing network, Quebec-based Income Access, to help it develop new leads for its online poker brand and online casinos in Nevada and New Jersey. Affiliate marketers—who are active in countless industries including health care, online retail, education and online dating—are a good deal for casino operators for a simple reason: their compensation is based purely on results. “They refer potential users to the site and are remunerated once those players perform an activity—once they convert,” explains Akiva. “There are different ways of referring players, but if you are able to drive online traffic through a website and have it tracked through a unique code that is provided to you, then you could potentially be an affiliate.” In theory, anyone can do it, he adds. “You can have one guy writing a blog who does it on a weekend, managing a bunch of sites, and then have affiliates that have hundreds of employees, and everything in between.” The method, which originated in Europe in the early 2000s, was first used in the U.S. by unlicensed operators who couldn’t employ traditional channels. Affiliates had other ways of driving traffic, such as special sites dedicated to gaming, says Akiva. “A lot of the time, they attract people who are actively searching for gaming products. They will have sites that rank well NOVEMBER 2015 www.ggbmagazine.com

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Q&A Nicky Senyard Founder and CEO, Income Access

n 2002, corporate marketing and public relations executive Nicky Senyard established Income Access to offer affiliate tracking and reporting software customized to the needs of iGaming operators. The Canadian firm now works with 200-plus iGaming brands and houses the largest iGaming-specific affiliate network, with more than 25,000 marketing partners in the U.K., Europe, Australia, and North and South America. GGB: Is the iGaming customer fundamentally different from the landbased patron? Does he/she have to be approached and engaged differently? Nicky Senyard: The content is the same, the

messaging is the same, and the target audience is the same. It’s just the medium of contact that differs. The biggest difference is the transition away from traditional media, such as direct mail, to digital adaptations. When it comes to differences in age and demographics, it comes down to the medium of delivery that they’re familiar with. Marketing for me is all about context and content. Whether you’re a land-based casino or an iGaming site, that means segmenting your players in terms of their demographic make up and developing the appropriate campaign to target and acquire them. When does affiliate marketing make sense for iGaming operators?

Affiliate marketing is a type of performancebased marketing where a third-party website or, more recently, a mobile app, promotes a brand by hosting their online ads. The way I see it, the benefits in working with affiliates are threefold. Affiliates represent a third-party brand endorsement for a casino product. The commission payouts are performance-based, meaning a casino is only paying for conversions. Lastly, because payouts are based on a customer action, the impressions for viewing these advertisements are essentially at no cost to the casino. There are three main commission models. First, there’s cost per acquisition (CPA); second, there’s revenue share, where the advertiser shares

a set percentage of the revenue from acquired customers with the affiliate; and third, there’s a hybrid of CPA and revenue share. In terms of the providers involved, the primary relationship is between the iGaming operator and the affiliate. Then, you have affiliate marketing software providers like Income Access, whose technology streamlines the management of affiliate campaigns. The main reason affiliate marketing has proven integral to the growth of the iGaming industry in Europe, Australia and other markets is that it’s incredibly cost-effective. Most interestingly, this type of marketing relationship also allows the advertiser to get actionable feedback on their brand from the affiliate, and on average, can represent up to 30 percent of a brand’s customer acquisition. Why has iGaming been so slow to gain momentum in the U.S., and what do you see for the future?

Since real-money iGaming returned to the States two years ago, the three regulated markets of New Jersey, Nevada and Delaware have been slowly but steadily evolving. In the early days of New Jersey, for example, there were issues with payment processing and geotargeting, but these have been ironed out. This August, New Jersey’s iGaming market saw strong year-on-year revenue growth, which is really encouraging. I’m optimistic about the future of iGaming in the U.S. What with operators, casinos, state regulators and service providers like Income Access, there’s certainly the will for the market to expand on a state-by-state basis. Many industry watchers felt that Pennsylvania would go live this year, but it wasn’t to be. Personally, I feel that California, with its population of over 38 million, could be a tipping point for other states. With the presidential election next year, all eyes will be on 2017—and the Golden State.

Global Gaming Business NOVEMBER 2015

for gaming keywords, etc., so therefore, they present potentially high value because they convert better.” He says affiliates may matter less as the markets regulate, but can still play a major role in driving quality traffic to gaming sites. “The thing with affiliates is that once you work with them, you need to be ready to give up some control over your message and your brand and how it is presented. (But) I am a big believer in the affiliate market. It’s a great way to attract players in a very concentrated way. You normally pay after you have seen the results, so you’ve pushed the risk to your affiliate. If they know how to do their job, they will be rewarded and you don’t lose any money as an operator.”

Thanks for Sharing There are other reasons the market has been slow to grow in the U.S., like the limited player pool and the continuing reluctance of banks and credit card companies to process online gambling transactions. That may change as global payment processor PayPal tiptoes back into the online gaming market in the U.S. Until 2003, PayPal accepted such transactions in the U.S., but cut them off when the federal government began cracking down on online gaming operators. In September, the firm—which has always been active in the European gaming market—launched a trial with four legal online U.S. gaming companies to give players another way to fund their accounts. And speaking of Europe, according to the European Commission, the E.U. gambling market is worth about €84.9 billion ($95.5 billion) per year, and is growing at a predictable rate of around 3 percent annually. Will the U.S. online market ever rival Europe’s? Some observers say the tepid results in Nevada, New Jersey and Delaware have quenched the appetite of other states to legalize online gaming. But the industry is not likely to really get traction until other states jump in and more interstate compacts come to pass. “The problem is the state-by-state approach; it’s a lot more expensive and much messier to operate this way,” says Akiva. “But when those platforms and services are shared among different, multiple jurisdictions and there are more markets to operate in, this will make it more economical for operators and investors. And then you’ll see major operators get more aggressive and ambitious.”

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iGAMING NORTH AMERICA

It’s a Fantasy G2E looks behind the curtain at DFS

he Global Gaming Expo is always a good event to gauge what’s going on in the industry. This year was no different. And judging by the buzz, fantasy sports are the hot item. There were no less than five conference sessions on the topic, and at least one offered some fireworks as speakers sparred over the issue. In case you’re not familiar with fantasy sports, its genesis was the old “rotisserie” leagues where participants picked their dream teams for a season, they played in leagues with their friends and worked their way through trades and injuries to compete for a winning team. But today’s fantasy sports are not your father’s rotisserie leagues. Rather than being season-long competitions, they’ve morphed into daily and weekly contests. They’ve coined their own acronym, DFS, for daily fantasy sports. Fantasy sports are clearly a game of skill (unless I would play, and then it would be purely chance). It’s data-crunching at its best for those who play, and it appeals to traders. And it enjoys a carve-out from the Unlawful Internet Gambling Enforcement Act (UIGEA), since the National Football League deemed it acceptable in that lobbying process. In fact, many professional sports leagues and teams are now partnering with one of the two leading providers of the activity, DraftKings and FanDuel. And these companies certainly got on the radar of the everyday consumer of football in the opening week of the NFL when their advertising was ubiquitous. In fact, the Wall Street Journal reported that both providers had large rounds of funding from the likes of media giants like ESPN, Time Warner and Comcast with substantial ad campaigns ($250 million each) as part of the deal. So those barrages shouldn’t come as a surprise. With that brief primer, most of the debate at G2E was related to: 1) “Should fantasy sports be considered sports betting?” and 2) “Is there a need (or not) for regulation?” Whether daily fantasy sports constitutes gambling or not seems to be a matter of opin-

By Sue Schneider

ion, legal or otherwise. A broad consensus is that the DFS certainly has the look and feel of gambling. Proponents are quick to point out that gambling has prize, chance and consideration, and that DFS is clearly a game of skill. This discussion of whether or not to regulate is an interesting one, but may become moot as politicians begin to call for regulation. After the flood of ads during the opening week of NFL, U.S. Rep. Frank Pallone, a Democrat from New Jersey who supports legalized sports betting, used the opportunity to note the contrast. Sports betting is illegal but, as he noted at an International Center for Sports Security conference, “What it has essentially done is carve out a way for the leagues and teams to do sports betting or gambling where they are the only ones that make any money. That is why they are for the fantasy sports, because they are making the money. “They don’t want the state to make the money. They say that sports betting is immoral and it causes all kinds of problems for their players, but they don’t hesitate to get their players involved in all kinds of fantasy sports.” Pallone has called for congressional hearings to explore the relationship between the leagues and fantasy sports. On the state level, several states have called for regulation of fantasy sports. Five states currently have laws which block daily fantasy sports: Arizona, Iowa, Louisiana, Montana and Washington. Maryland and Kansas have legalized. At least 10 states have begun to look at regulatory bills: California, Illinois, Indiana, Iowa, Kansas, Louisiana, Massachusetts, Michigan, Montana, Pennsylvania, Texas and Washington. How these all sort out remains to be seen, but given how high-profile the industry has gotten recently, that list is sure to grow. Having watched the iGaming industry since 1995, we do tend to be prone to scandals. I’ve thought for a few years now that the same will happen to daily fantasy sports. One college student blowing through his student loan was certainly a good possibility to come to light. Or given the lukewarm age verifications on DFS sites, an underage player racking up a good debt on a family

credit card was another good option. But, actually, while the topic was being bandied about at G2E in Las Vegas, DFS staff were undoubtedly creating PR positions on a scandal that broke over that following weekend. In essence, reports said that a DraftKings staffer used information not available to the public to win $350,000 on the FanDuel site. The move was likened to “insider trading” by the media.

‘‘

A broad consensus is that the DFS certainly has the look and feel of gambling. Proponents are quick to point out that gambling has prize, chance and consideration, and that DFS is clearly a game of skill.

”

Simultaneously, the New York Times editorial board issued an op-ed titled, “Rein In Online Fantasy Sports Gambling.” They said, “The allure of profits from gambling clouds otherwise rational minds. Giving people more ways to bet on the outcomes of sports is sure to threaten the integrity of sports and create more gambling addicts, especially among young people who are already more likely to engage in risky behaviors.” There was no mention of the scandal, so one can only imagine what the Times would have done had they held that editorial another 24 hours or so. Watch this space closely. Eilers Research estimates that daily games will generate around $2.6 billion in entry fees this year and grow 41 percent annually, reaching $14.4 billion in 2020. So regulation likely won’t be far behind.

Sue Schneider has a long history in iGaming. She is a co-founder of the iGaming North America conference, and is editor of Gaming Law Review and Economics.

NOVEMBER 2015 www.ggbmagazine.com

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closed in the country during a federal crackdown on offshore gambling sites in 2011. New Jersey currently has 17 licensed online gambling sites, but only four offer live poker play. Online poker play has lagged behind sites offering casino games in revenue. State officials hope that by bringing two online giants—with more than 95 million registered users—they can invigorate the he daily fantasy sports indusDraftKings and that baseball playpoker market. try is being rocked by allegaers and employees are prohibited However, players will still have to be physically tions that employees of the sites from participating in fantasy baselocated in New Jersey when playing. are using information not availball games where prize money or Amaya’s chairman, David Baazov, said he was able to the public to play on rival other items of value are awarded. pleased to add New Jersey to the regulated markets DFS sites and win cash. New Jersey Congressman in which PokerStars and Full Tilt have been apThe scandal erupted after a Frank Pallone has already called proved for operation. DraftKings employee admitted to Nevada Senator Harry Reid calls for a House of Representatives The state Division of Gaming Enforcement the DFS sites “scary.” inadvertently releasing data on hearing on the daily fantasy sites. confirmed it issued the waivers to six Amaya subplayer ownership among site playPallone was prompted by the saturasidiaries to operate PokerStars and Full Tilt in New ers before the start of the third week of NFL tion advertising for the sites on TV in recent Jersey through a partnership with Resorts Digital. games. It was also revealed that the employee had weeks, and has asked how betting on the performThe waivers are seen as the first step toward full liwon $350,000 playing on rival DFS site FanDuel. ance of an individual athlete is any different than censing. His initial entry fee was reportedly $25. betting on a team in traditional sports betting. Officials did not say when they expect PokerThat led to allegations that employees of fanPallone is the ranking Democrat on the House Stars and Full Tilt to launch in the state. tasy sites are essentially using inside industry inforEnergy and Commerce Committee and a PokerStars has been trying to get licensed in mation to play on other sites. spokesman for the committee—which is conthe state since 2013, at one time even planning to Scoring on DFS sites is done through algotrolled by Republicans—told Reuters hearings buy the now-closed Atlantic Club casino. The state rithms the employees of the sites set themselves, so could be held soon. balked, however, at licensing the company, pointhaving the information beforehand—the list of Since then, Pallone has been joined by New ing to its 2011 problems with the U.S. Departplayer ownership was not supposed to be released Jersey Senator Bob Menendez in asking the Fedment of Justice, including charges made against the before games were played—would give employees eral Trade Commission to look into the fantasy company’s founder and several key executives. an advantage, critics charge. Armed with the scandal, Reuters reported. When Amaya Gaming acquired PokerStars, knowledge, for example, a DFS player could pick Meanwhile, DraftKings CEO Jason Robins however, those executives stepped down and left NFL players not widely in use, but expected to has said in several interviews in the wake of the the company. Still, the state took more than a year perform well that week. scandal that the company is committed to creating to approve the sites under Amaya, even though the Both FanDuel and DraftKings have issued an open and transparent environment. company itself had already been approved to operidentical statements saying they have policies “We have great records of when data is pulled, ate on other New Jersey sites. against such use of information and defending the when communications were sent,” he said in an The PokerStars website paid a $547 million integrity of the sites. interview on Fox Business. “There was no wrongfine to the Department of Justice but The scandal comes as the DFS industry has doing.” didn’t admit wrongdoing. Amaya will been drawing the attention of gaming regulators put about $400,000 into a trust account and federal officials. Over the last few months, PokerStars with the state for unrecovered funds left sports broadcasting has been inundated with a Gets NJ OK from former New Jersey players “so that constant stream of advertising for the sites promisthey may reclaim them,” a spokesman ew Jersey gaming regulaing big-money prizes. Combined, FanDuel and for the company told the Associated tors have finally apDraftKings spent an estimated $107 million on Press. proved Amaya Gaming for a advertising in September. For PokerStars and Full Tilt, the imtransactional waiver allowing That has caused regulators in Massachusetts, pact of the New Jersey approval could the company to operate its California and Nevada to say they are taking a also be transformational. While some PokerStars and Full Tilt Poker closer look at the industry. states, like Nevada, established a legislasites in the state. Further, attorneys general in New York, Mastive “penalty box” for companies that Amaya is teamed with sachusetts and Florida have begun investigations David Baazov, chairman of the had engaged in illegal U.S.-facing gamResorts casino in Atlantic into the DFS industry. parent company, Amaya bling websites, other states could now City, which offers its own Major League Baseball, which has an investGaming, thanked regulators for casino game sites. In New Jer- the “thorough and fair review” allow regulators to make that decision ment in DraftKings, reacted, as well. rather than building it into the legislasey, online sites must be “We were surprised to learn that DraftKings tion. PokerStars has agreements with several Caliteamed with an Atlantic City casino. The casinos allows its employees to participate in daily fantasy fornia tribes and card rooms, while other tribes can partner with multiple companies. games,” the league said in a press statement. oppose the company’s participation. But with the For PokerStars and Full Tilt, the move allows A spokesperson for the league told Bloomberg New Jersey OK, all bets are off. them to resume business in the U.S. after being that league officials have discussed the matter with

DFS Rocked By Betting Scandal

Global Gaming Business NOVEMBER 2015

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2016 GGB Gaming & Technology Awards

Head & Shoulders The winners of the 2016 GGB Gaming & Technology Awards are ahead of their time By Patrick Roberts

n an industry dedicated to improving technology, recognition for unique accomplishments is few and far between. But one awards program stands apart from the others for its significance—recognition at Global Gaming Expo, the industry’s most important trade show, and the quality of its judging panel. Global Gaming Business magazine last month announced the winners of the 14th Annual GGB Gaming & Technology Awards. The 2016 Gaming & Technology Awards are the industry’s standard in this field, recognizing excellence in innovation and practical application in all gaming disciplines. The awards were presented to the winners at last month’s G2E in Las Vegas. “The rapid development of technology in the gaming industry, along with quicker response of regulators to approve these products, have made these awards much more competitive and dynamic every year,” says Roger Gros, publisher of GGB magazine, which administers the awards program. “The GGB Gaming & Technology Awards surely recognize the trends and progress being made in the industry today.” Judges for the awards were Claudia Winkler, president of GHI Solutions; Rob Russell, gaming analyst, Regulatory Management Counselors, P.C.; Frank Neborsky, CEO, Power Strategies; Gerhard Burda, president and CEO, ESCAPES Advisory Services; and Cliff Paige, slot director, South Point Casino Resort, Las Vegas. For information on the nomination process for the 2017 GGB Gaming & Technology Awards, contact John Buyachek, GGB sales director, at jbchek@ggbmagazine.com.

Best Consumer Service Technology:

1st: IGT, OnPremise Mobile Solution

2nd: Gamblit Gaming, Gamblit Gaming Platform

Best Productivity-Enhancement Technology:

1st: Konami Gaming, SYNKROS SYNKdot

Global Gaming Business NOVEMBER 2015

2nd: Duetto Research, Game Changer

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LEGAL

Indian IRs Redefining Economic Diversification as Integrated Experience in Indian Country

he new darling of the gaming industry goes by the name “Integrated Casino Resorts.” The recent Global Gaming Expo showcased an entire track and exhibit hall titled “The Integrated Resort Experience.” It was the first time G2E offered an end-to-end experience focused on the growth of the casino resort property. In Indian Country, the “integrated” notion has a familiar ring. The statutory purpose of the Indian Gaming Regulatory Act (IGRA) hinges on the need to encourage economic development and diversification within tribal communities to strengthen selfsufficiency and tribal governments. For the past 25 years, gaming has been the primary catalyst for economic and infrastructure growth on the reservation. The success of IGRA is indisputable. According to the 2015 edition of Casino City’s Indian Gaming Industry Report, tribal casinos account for roughly half of the total revenue produced by the U.S. gaming industry—a $28 billion gaming market with 479 tribal gaming facilities operating in 28 states. Yet, despite this successful backdrop, many tribes could benefit from redefining the mantra “economic diversification” to encapsulate the phrase “integrated experience.” The new take on an old idea may create new opportunities for phased expansion at existing brick-and-mortar casinos. The integrated growth model of “spend more and stay longer” could spark an economic boom in Indian Country while simultaneously building basic tribal infrastructure and interest in native cultures and tourism. A review of commercial gaming profits attests to the need for tribes to revisit their economic development strategies to embrace the integrated experience. Recent financial reports find that more than 60 percent of commercial gaming revenues on the Las Vegas Strip are now generated off the casino floor. This growth is pivotal, and directly attributed to the integrated casino resort model of providing a full suite of profitable amenities for casino-resort guests. A pivot to integrated resort-style facilities in Indian Country will undoubtedly bring additional revenues. An example of a successful tribal integrated approach can be found in Florida. In 2012, the tribes in Florida posted a 25 per-

By Loretta A. Tuell

cent increase in non-gambling revenue; nationally, all other tribal casinos posted a 2.7 percent increase. In 2013, the tribes in Oklahoma posted a 13.9 percent increase in non-gambling revenues to $580.5 million generated by casino patrons’ expenditures on food, beverages, lodging, shopping and entertainment. In 2014, the tribes in California saw their nongaming revenue increase 0.5 percent to $795.8 million. The increased California revenue was derived from the growth in non-gaming amenities, such as hotel towers, restaurants and other entertainment upgrades. Integrated Experience in Indian Country Traditionally, integrated resorts feature state-of-theart meeting and convention facilities, five-star restaurants, world-class shopping, luxury hotel accommodations, entertainment and gaming. Yet, what is ideally suited for commercial gaming properties may need to be modified to better suit and benefit Indian Country. The ideal Indian integrated model should seek to highlight the unique culture, traditions and location of tribes to better address the historic hurdles that plague successful business ventures in Indian Country, such as: • Remote geographic locations and inadequate infrastructure; • Access to a large gaming market or population centers; • Access to capital financing; and, • Access to casino management expertise and a specialized workforce. To that end, last year the Sycuan Institute on Tribal Gaming (SITG) and the Arizona Indian Gaming Association (AIGA) announced a partnership to develop a curriculum that addressed gaming operations from the whole property perspective with an emphasis on the emerging Integrated Resort Model in Indian Country. The global vision for tribal gaming education and development outlined in the Executive Training curriculum seeks to emphasize the need for cultural sensitivity and competence, government-industry relations and industry intelligence from the perspective of native nation-building. In sum, both SITG and AIGA advocate that if Indian tribes are to take advantage and participate beneficially in the integrated resort experi-

Global Gaming Business NOVEMBER 2015

ence, the business approach should seek to capture the unique cultural, economic and political dynamics of each tribal community in a holistic manner. Today, despite the federal trust relationship, Indian tribes are increasingly encouraged to find market-based solutions to foster economic growth and build community infrastructure as federal austerity and sequestration policies reduce government funding. Now, to maintain and grow casino revenues, many tribes are willing to take advantage of the integrated experience as a business opportunity to attract in-state visitors, large convention business and tourists from around the world. Something Besides Gaming The G2E Integrated Resort Experience envisioned a six-segment model, “Dwell, Indulge, Captivate, Connect, Play and Zen,” to advance the integrated concept. Tribes could utilize the same or similar model to create and market their own uniquely native integrated experience by intertwining their own culture and experience into each of the six segments. The “Indian Integrated Experience” would enhance the vibrant cultural revitalization already occurring in Indian Country. The focus on community development as integrated experience could spark new business plans that make economic sense and are in synergy with cultural elements. For example, beyond the amenities at the casino, a tribe can develop needed community infrastructure down the road, such as gas stations, retail components like grocery stores, beauty salons, movie theaters and other shops. More importantly, the “fun money” could be directed toward cultural experiences like virtual historical re-enactments and encampment experiences, canoe trips, tree and water experiences, gator hunting and fishing adventures, arts and crafts, language developments, indigenous spa experiences, museum and film opportunities. The list of possible Indian integrated experiences is endless, and the desire of tribes to revitalize their history and native culture, priceless. Loretta Tuell is a shareholder at the Greenberg Traurig law firm, focusing her practice on American Indian law, governmental law and policy, and gaming matters. Tuell may be reached at 202-331-3141 or via email at tuelll@gtlaw.com.

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SALES

MARKETING

The CRM Umbrella Widens G

aming features its own customer relationship management model, which runs two levels deep. The first is a tweak of the classic business version, which organizes, automates and synchronizes the sales, marketing, customer service and technical support areas. Gaming already uses these items more than most corporations would because its patrons bring more to the bottom line than most customers do. Casinos use spending data to predict customer return and distribute rewards in a fluctuating business climate. But that’s only the start. A follow-through phase, via face-to-face customer service, must augment the information. This is, after all, the fantasy business. Casino patrons want an adrenaline rush they can’t gain anywhere else. Data can’t give them a high five. Technology supplies the means to find gold, and people skills extract it. Operators use both elements to secure and maintain customers. That’s why entreprenuers broach this dynamic from both fronts, offering varied specialties.

Changing the Game Marco Benvenuti enjoys his new company. Not just the Duetto Research group, which he launched in Las Vegas about four years ago after leaving the casino industry, but the company of like-minded individuals sharing his vision, where he is chief analytics and product officer. “Even up until about a year ago, there was resistance from casinos regarding pricing for their hotels and other aspects of their property,” Benvenuti says. “They would say, ‘We have been doing it like this for 30 years—why do something different?’ Now, they are much more receptive to this type of argument. They realize that the next wave of growth in the business is not going to be in slot machines. It’s going to be in the nightclubs, the arenas and with some of the special amenities they provide.” Enter GameChanger, a cloud-based, software-as-a-service solution introduced last year. It is used at an increasing number of hotel casino properties and includes new installation agreements with “old guard” operators like Michael Gaughan at South Point and with Affinity Gaming. GameChanger observes web-shopping behavior by observing items like lost 50

Global Gaming Business NOVEMBER 2015

SERVICE

Solutions to understanding your customer abound in today’s gaming industry By Dave Bontempo

business regrets and denials, social review, air traffic and weather. The technology can forecast far enough out for sales and marketing departments to aim campaigns at need periods and pull unnecessary offers when business is strong. The surge in databases supports the argument of a technical pricing directive. Casinos otherwise can become trapped in a time-consuming process of information gathering. “You can’t have human beings keeping track of this any more,” Benvenuti laughs. “In the past, yes, a supervisor could eyeball a player’s activity and recommend comps, but after a couple of different steps you need other departments to be involved in approvals. “Now, if you have a player who calls up and wants a room for the weekend, you can see based on his value what you should offer on any given night. You can go back and forth from comp to cash if you want. “A player may wish to come in for the Floyd Mayweather fight (against Andre Berto in September, a multimillion-dollar event in Las Vegas) and this time he says, ‘Look, I want to make this one special; I would like to bring my wife.’ Well, the demand for players might be that you can’t get him a comp room the night of the fight, but you could provide a comp on Thursday, allow him to pay something on Friday, and go back to a comp the following night. It all depends upon his value to you.” That value includes the gamut of restaurant purchases, spa visits and nightclub participation, besides gambling. “When you combine the gaming side with the way a customer interacts and spends money on the non-gaming side, you get a combined score and a more accurate reading of his value,” Benvenuti contends. “You are more likely to pattern an offer or give a rate that corresponds with his value.”

Agility in Action Agilysys is a hospitality industry powerhouse serving casinos, resorts, hotels, cruise lines, food service, stadiums and restaurants. It is a leading developer and marketer of proprietary software, services and solutions. Agilysys operates extensively in North America, Europe and Asia, with corporate headquarters outside of Atlanta. Gaming represents about 50 percent of revenues and is the company’s largest target industry, according to Jim Dennedy, Agilysys president and chief executive officer. Dennedy views recruitment, wallet share and guest connec-

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“Now, if you have a player who calls up and wants a room for the weekend, you can see based on his value what you should offer on any given night.You can go back and forth from comp to cash if you want.” —Marco Benvenuti, chief analytics and product officer, Duetto Research

tion as the keys to success in the CRM dynamic. Casinos want his company to improve the guest experience and build lasting connections for repeat business, he indicates. This includes providing cloud-based solutions that help lower technology costs and support the shift to predominantly non-gaming revenue. “Industry-wide, non-gaming spend represents approximately 65 percent of total revenue,” he says. “Understanding the value of the non-gaming, nonstaying or low-intensity gaming guest is critical to their business. We help operators understand the value of the guest and their various acting personas to improve recruitment, increase wallet share and strengthen the connection to their guest. “We also help them increase the likelihood of accessing the highest available margin from their property and their guests’ spending. For casinos, this remains the gaming spend. The casino has little chance of accessing the gaming spend if the non-gaming offer is not attractive to the demographic the property desires.” Dennedy says Agilysys provides an integrated view of the consuming guests and the means by which they pay for consumption. This helps operators address the shift in guest preference and the associated revenue-mix shift. It also helps them make a contextually relevant offer to the guest at the time of each visit. Agilysys took the integration element one step further a couple of years ago with a simple process: listening. “About two years ago, we launched an rGuest platform and products menu, informed by an advisory board of approximately 18 customers who have been part of the platform and solution development process,” Dennedy recalls. “In the past 12 months, we have released several key platform-based solutions (under the rGuest banner): rGuest Seat, Pay, Analyze, Stay and Buy. We continue to evolve these releases to address the needs of gaming and non-gaming customers.” The rGuest platform provides a single comprehensive view of each guest in every interaction. And the rGuest self-service kiosk was recently showcased at G2E. Within gaming, Dennedy says that while tribal and nontribal entities have the same financial objectives, “in many cases, slot play is more important to tribal gaming. This makes the millennial preference shift more acute.”

“It helps keep track of things, but does not necessarily analyze the trends and anticipate the future needs of a property. What we do on the analytical side is show you how do mine that data. “How can you give that customer a better experience? What about the player who hasn’t visited your property in a while? What can you do to trigger a return trip from him?” That information runs the gamut from significant non-gaming spend to social media, Duggasani contends. Data analysis has grown into monitoring what customers say, like and tweet about their gaming experience. The Atlanta-based company aims several products at gaming’s analytical needs, and it deals with industry giants like Mohegan Sun and the Cherokee Nation. One of its prized offerings is the GuestREV solution and its updates. The product is cloud-based, enabling operators to view suggested room rates produced by its own player database and by probabilities incorporated into the software. Mathematical algorithms, price suggestions and an updated view about what types of players occupy which types of rooms are available to an operator. So is each guest’s spending history. Business Intelligence is a new web-based application that combines data from key systems. For asset management and property management companies, it provides detailed visibility into leading and lagging revenue-oriented data for their entire portfolio, regardless of the brand or property management system. With the application’s intuitive dashboards and custom reports, hoteliers can measure performance against corporate goals. They can also monitor individual property, department and enterprise data, drill to the “why” behind the numbers and make better revenue decisions, Duggasani says. The data is more significant for casinos with hotel components, or resort spas that have gaming. It also carries weight with operators who have several properties in a region or country, especially when rewards are linked across all of them. With its March 2015 acquisition of Revcaster, Rainmaker provides the

It’s Raining Info The Rainmaker Group is a world leader in automated forecasting and profit optimization software and services for the gaming and hospitality industry. What is CRM these days? It’s a glance at the next step, according to Amar Duggasani, Rainmaker’s chief strategy officer. “In many instances, CRM solutions concern the operational and transactional side of the business,” Duggasani says. 51

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Face Time only revenue management solution suite that has an integrated price comparison component to help hoteliers monitor parity, maximize ADR and drive higher profits, company reports say. Revcaster collects market-specific hotel price information from hundreds of branded sites and online travel agencies, and provides easy-touse reports and data downloads that increase revenue for clients. Reports are available anytime online in daily, weekly or other user-specific delivery formats, and pricing data can be downloaded easily into any revenue management tool or PMS the client prefers.

While spending history and crunched numbers determine player value, it is the personal touch that inspires loyalty. That could be the theme for New Jersey-based Rymax Marketing Services, which combines old-school values with modern technology. Software programs may suggest an appropriate hotel rate, but that only helps bring a customer to the property. What about the gaming experience? That’s why this company touts its loyalty-providing assets to the gaming world and offers R-SITE (Rymax Strategic Interactive Themed Events) to casinos and pa-

Success in Hand High-tech devices include customer service by providing real-time information ristocrat and Acres 4.0 provide a dual snapshot of the CRM dynamic. Success depends upon data. And people. Each plays a prominent role. Kai, the artificial intelligence solution from Las Vegas-based Acres 4.0, spans both the touchscreen and personal-touch ideologies. It is connected through a central server, yet employees are equipped with a mobile device and Bluetooth to communicate internally. Now in its fourth year and in 28 casino properties, Kai has done more than simply eliminate the two-way radio, according to company founder and industry pioneer John Acres. “The old concept of CRM involves lists and notifications,” Acres says. “It makes customers feel special compared to how they felt before, but it does not have the direction of the human warmth and deep personalization that’s important now. The only thing that separates casinos from internet services is the social experience. That’s where you need interaction. “You can have lists to tell people what things they should be doing, but you are still only as good as your worst employee. If that person is busy or not well-trained, the relationship does not get managed.” Directing that relationship entails directing the employee toward his or her strengths in the customer-relationship realm. Kai enables the right person to be automatically selected for the appropriate task, Acres says. “You may have employees who have tremendous social skills but not the same logic skill,” he says. “They love to make people happy, and the system frees them to engage the customer, in that

moment, as opposed to someone being unable to do that because he has to make this or that log in the machine. “A message can say, ‘Joe Smith is a Diamond player. He was here last on August 30. He’s back now just a couple of days later. Joe has been here for half an hour and nobody has gone over to say hello to him. Joe has two kids and lives in California.’ Your employee is now going to go over and recognize Joe Smith. Why should we only be addressing him when there is a machine malfunction? Kai has given your employee the raw information (and possibly the directive) to start a conversation.” In general terms, Acres says the departure of twoway radios eliminates the excess chatter that was “toxic for morale.” He believes the operators’ deployment of Kai mirrors the casino business climate. “Up until the last few months, many were still feeling pessimistic about it,” he says. “The feeling was that they could use technology to do more with fewer people, cut costs and get more efficiency out of people. Now we are seeing that they can use it to make customers happy, get new players and become more prosperous.” And maybe they’ll celebrate by giving a “Kai Five.” Las Vegas-based Aristocrat Technologies gives players a remote link to the games people play. While the company is known for innovative gaming machines and progressive systems, it added a device that matches its changing market. Mobile Concierge is Aristocrat’s new casino player app that builds loyalty by enhancing communication between the casino and the player. It is available for players using either Android or iPhone and can be used anywhere a customer has a cellular signal. Players can download the app from their favorite

Global Gaming Business NOVEMBER 2015

John Acres and Kai

app store onto their preferred Android or Apple mobile device. Mobile Concierge can be used by any casino of any size, using any casino management system. Any player from any casino can use Mobile Concierge simply by downloading the app to an Android or iPhone mobile device. Sycuan Casino, Jackson Rancheria and Shooting Star are among the casinos using Mobile Concierge now. For operators, the benefits are enormous, Aristocrat officials say. As it builds loyalty, the app also collects important data on the player, giving operators a more complete player profile. This arms operators with smart business intelligence for betterinformed decision-making and player outreach. The product has numerous possibilities that allow players to stay connected to the casino. They include managing their rewards account, tracking their favorite slots, connecting directly with casino hosts, being notified of upcoming events and promotions, and staying informed on popular progressives. When their patrons use Mobile Concierge, operators can gain insight into targeted business intelligence with the system’s geofencing/microlocation technology. They can also tie proximity campaigns to marketing initiatives, define geofences around the property, push messages when players enter and leave properties and reinforce player experience when they least expect it. Mobile Concierge also creates a player experience tailored to each individual. Using the app gives players anytime, anywhere instant access to their personalized player dashboard, club information, promotions, progressive jackpot updates, upcoming events, casino dining, personalized messages, their host and win-loss statements. — Dave Bontempo

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“We help operators understand the value of the guest and their various acting personas to improve recruitment, increase wallet share and strengthen the connection to their guest.” —Jim Dennedy, Agilysys president and chief executive officer

trons. The events are targeted toward a specific demographic, with the intent of creating strong customer memories. Rymax has relationships with high-level manufacturers like Michael Kors, Chopard, Toshiba and Mikasa. Casinos can utilize that to purchase items their players want at a special event. The operator can leverage Rymax’s business connections to improve their own customer loyalty, according to Paul Gordon, senior vice president of sales for Rymax. “The casino world is still a fantasy for its customers,” he says. “They have an opportunity to win a lot of money, and are going to experience a different life for the time they are in there. You want to provide something that resonates with them, something them makes them feel they have a voice in the casino. “The person gambling at your company wants to know that the top management cares about what he wants. This is an excellent time for the president of the company to walk around, shaking hands and kissing babies. Let us get back to servicing them, rather than simply being analytical. Let’s be more of a people business. “If you win money at a property, you may not remember what you did with it a couple of years later. But if you are wearing that nice watch on your wrist that you either won at a contest or were given by the casino, you will never forget it. That watch on your wrist has residual value.”

Gordon says this advanced form of player identification becomes more prominent for markets like Atlantic City, which faces a bevy of nearby competition. A Rymax casino event can take the form of a shopping spree, or a contest. The process rewards players for their business and embraces a significant market shift, Gordon says. “People may not want to talk about it much, but as the boomers are getting older and exiting the work force, you have to appeal to the millennials,” he says. “Much of their spending will not be connected directly to gaming. You need to know what drives that group. In order to shift them from the nightclub into the gambling realm, you need to understand what motivates them and encompasses all the things they are spending money on. You tie it together and then give them the things they want. This group does not want knock-offs. They want high-quality items at retail.” Combined with the perception of importance. Rymax programs also help operators identify the employees who can up sell the amenities, Gordon says. That can be check-in people encouraging guests to move from a standard room to a suite, or booking rooms on site. It can be a host having enough rewards to offer players. In the end, the primary goal of these and every other CRM program is simple: Make sure the customer is happy. And that he comes back.

We are a p proud roud p partner ar artner o of f th the e UNL UNLV LV V Foun Foundation, dation, th the e Wi William lliam F.. Harr Harrah College of Hotel Administration and wonderful F rah ah C ollege eo fH otel Ad ministr ration an d our wo nder rful athletic teams. Just as the former Sahara Hotel Casino has a thletic tea ms. Ju ust a s th e fo rmer Saha ar ra aH otel & Ca sino ha as reinvented itself as Las Vegas, corporate partnerships allow rei nvented it self a s SLS L as Vega s, c orp porate p ar rtnerships al llow the university to grow and become academic leader rapidly th e un iver rsity t o gr ro ow an db ecome an n acad emic lead er iin nar rap apidly changing world. chan ging wo rld.. Dee Dee Spuriel Spuriel Director Director of of Promotions, Pr ro omotions, sbe sbe

For Fo or more information, please con contact tact the Annual Giving team at 702-895-2838 7 or visit us at unlv unlv.edu/foundation. .edu/foundation.

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NEW GAME REVIEW by Frank Legato

Fire Wolf: Howling Boost AGS

his game employs the basic format and many of the most popular game features of the former Cadillac Jack, the slot-maker acquired last year by AGS. One of those features is the basic “PowerXStream” game format, which employs a variety of novel reel setups in a scatter-pay configuration. In this case, it’s a 3-4-4-4-3 reel configuration (three spaces on the outer two reels and four on the inner reels). This results in a potential 576 ways to win on each spin. The PowerXStream pay mechanic evaluates the award based on the number of symbols that occur on adjacent reels, with both left-toright and right-to-left pay evaluation. The base game can award one of four lower-level progressive jackpots, based on line combinations involving different-colored wolf symbols, with resets ranging from $5 for the Mini to $500 for the Mega. The jackpots rise at a level set by the casino at increments as high as $1. They are all “Must Hit By” jackpots, and when the progressives get close to the level at which they must hit, the game goes into “Fever” mode, with sights and sounds letting the player know a jackpot is approaching. The top prize is a fifth progressive, either wide-area or localarea at the casino’s discretion, won by lining up five game logos on the reels.

The progressives are displayed in grand style on the tall top box of the Stratos cabinet, framed in different colors in a flame-covered display. The game also includes the AGS “Turbo Boost Progressive” feature, which randomly boosts one or more of the progressive jackpots, sometimes by hundreds of credits. The central bonus is a frequently retriggering freespin event. When triggered by bonus symbols on the middle three reels, eight free spins are awarded. Those can be retriggered up to a potential maximum of 128 free games. Manufacturer: AGS Platform: Turbo Quad Boost Format: Five-reel, ways-to-win video slot Denomination: .01 Max Bet: 200 (Class II), 250 (Class III) Top Award: Progressive; reset at $50,000 (Class II) or $5,000 (Class III) Hit Frequency: Approximately 70% Theoretical Hold: 5%-14%

Golden Pumpkin Konami Gaming

onami is ushering in the autumn harvest season with this pumpkin-themed game, which features random multipliers combined with wild symbols and wild reels. The base five-reel, 40-line video slot features Konami’s Action Stacked Symbols—clusters of like symbols often covering a reel or several reels. In the free games, Golden Pumpkin symbols on the middle reel transform into multipliers to combine with the stacked symbols, often for huge credit wins. Three or more scattered flower symbols trigger the free-game feature. The player is prompted to choose the volatility for the free-spin round by selecting from three free-game-and-multiplier combinations. The player can select 20 free games with the Golden Pumpkin symbols on the middle reel changing to multipliers of 2X, 3X or 5X; 10 free games with multipliers of 5X, 8X or 10X; or five free games with multipliers of 10X, 15X or 30X.

Global Gaming Business NOVEMBER 2015

On the free spins, Golden Pumpkin symbols frequently land on all three spots of the middle reel, multiplying all wins involving those symbols. Random Action Stacked Symbols result in a lot of five-of-a-kind wins. Additional free games can be triggered during the free game feature. Golden Pumpkin is a KP3 platform game available on Konami’s classic Podium, SeleXion multi-game, and extra-large Podium Goliath cabinets. Manufacturer: Konami Gaming Platform: KP3 Format: Five-reel, 40-line video slot Denomination: .01-5.00 Max Bet: 2,000 Top Award: 15,000 credits times line bet Hit Frequency: Approximately 39% Theoretical Hold: 4%-18%

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Live It Up! Diamond Bingo Everi

ith this game, Everi applies its experience in creating electronic bingo games for Class II markets to the design of a traditional Class

There is a minimum bet of 40 credits, with each credit activating two paylines in the 80-line setup. Players are awarded only one winning Diamond Bingo pattern per spin, paying out the highest winning pattern. There also is a free-spin bonus, enacted by triggering symbols scattered on the first, third and fifth reel represented by the array (reels 1, 13, and 25). Players are awarded twice the total bet for triggering the bonus, which awards 10 free spins. The bonus can retrigger up to a maximum of 100 free spins. The Diamond Bingo Progressives are available during the free spins, and the bonus spins occur on an alternate set of reels including more diamond symbols than the base game— in other words, the progressives are more frequent during the free spins.

III video slot. The game is at once physically imposing, the tall vertical top monitor of the High Rise cabinet displaying no less than eight levels of progressive jackpot, atop a five-by-five video reel display for an 80-line base game. Each of the 25 symbols in the array is an entire reel containing all symbols, making it, mathematically speaking, a 25-reel game. But what is really novel about the game is the way in which the progressives—ranging from resets of $10 to the top $10,000—are won. For the progressives, the game treats the five-by-five reel array as a bingo card, and the prizes are won when diamond symbols form corresponding bingo patterns on the array. A straight line of diamonds on a reel returns the bottom $10 jackpot. Top jackpots reset at $10,000 for a full diamond cluster pattern with diamond symbols on every interior spot and $20,000 for an “X” pattern. Maximum bet is required to qualify for the progressives. With less than maximum bet, the jackpot tiers return static amounts ranging from 200 credits for the straight line pattern to 200,000 credits for the diamond cluster.

Manufacturer: Everi Platform: High Rise Format: Twenty-five-reel, 80-line video slot Denomination: .01, .02, .05 Max Bet: 200 Top Award: Progressive; $10,000 reset Hit Frequency: Approximately 50% Theoretical Hold: 2%-15%

Order of the Dragon Quest Ainsworth Game Technology

ith this game on Ainsworth’s tall-top A560 SL cabinet, the slot-maker improves on its popular “Sweet Zone” mechanic with a player option that also automatically increases the per-spin wager. The base game is a five-reel, 50-line video slot, but the reels expand to a 5-4-3-4-5 configuration with a 50-credit-per-spin ante bet. At the start of play, the customer selects either the original “Sweet Zone” or, with the ante, “Double Sweet Zone.” The Sweet Zone mechanic randomly makes a reel into a Sweet Zone, bordered in red. If a dragon symbol appears within the Sweet Zone, all symbols on that reel and adjacent reels are transformed into wild symbols—a three-reel block of wilds. With the ante bet, the second and fourth reels are both Sweet Zones, and when the dragon appears in both zones, all five reels are transformed into wild symbols for the game’s top jackpot. The ante bet to activate the Double Sweet Zone also raises the return-to-player—payback percentages range from 85 percent to 91 percent in standard mode, and form 88 percent to 94 percent with the Double Sweet Zone activated.

When a free-games feature is triggered with three or more scatter symbols, all five reels expand to nine symbols. During the free spins, any two or more scattered jewel symbols trigger five additional free games. The operator has the option to engage a twolevel mystery progressive jackpot, with the Minor resetting at $4,500 and the Major resetting at $4,500. Manufacturer: Ainsworth Game Technology Platform: A560 SL Format: Five-reel, 50-line video slot Denomination: .01-100.00 Max Bet: 300, 500, 1,000 Top Award: 30,000, 50,000, 100,000 (optional progressive reset: $4,500) Hit Frequency: Approximately 50% Theoretical Hold: 9%-15% (Sweet Zone); 6%-12% (Double Sweet Zone) NOVEMBER 2015 www.ggbmagazine.com

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CUTTING EDGE by Frank Legato

Holistic View Product: SG Universe Manufacturer: SG Interactive

cientific Games offers SG Universe, a holistic mobile and desktop solution anchored by compelling Las Vegas-style slot content, for land-based casino operators to engage players both online and in-casino—all with a 360-degree view of the player. SG Universe is a proactive solution for land-based casinos to address an increasingly digital world. Mobile devices now outnumber humans, and the mobile user experience is content consumption through downloadable applications. It is comprised of award-winning platforms including Mobile Concierge, Play4Fun Network, VenueBet, Core System Integration and Game Server. The SG Universe Mobile Concierge platform allows players to engage with a casino’s brand and amenities, including the ability to view loyalty rewards, receive personalized messages, and book hotel rooms, spa treatments and more. The SG Universe Play4Fun Network is a proven social casino platform that connects casinos with their players through a compelling web and mobile-based social casino experience generating daily player engagement averages of 85 minutes. With the SG Universe VenueBet platform, players can experience slots

and table games, with the inclusion of Class II content on the horizon, from their smartphone or tablet within predetermined areas of a casino property, turning any player’s mobile devices into incremental gaming positions on the casino floor. Core System Integration ties it all together by integrating seamlessly into a casino’s loyalty and patron management systems and providing a single view of the player and the ability to deliver a powerful, personalized, branded experience based on a player’s activity. The SG Universe solution is supported by Game Server, with the deepest and broadest portfolio of player-favorite content through the Bally, Barcrest, Shuffle Master and Williams game development studios. For more information, visit SGinteractive.com/sg-universe.

Closing the Bet Loophole Product: Simultaneous Bet Prevention Manufacturer: Interblock

ome players have exploited a loophole in electronic table game terminals to run up player’s club points and/or free-play credits without winning or losing money, simply by placing simultaneous bets that balance each other out, such as betting both red and black in the same game on an electronic version of roulette. This can be harmful to operators by increasing point liability without earnings, and by a non-playing player occupying a seat that could be used by a player who is legitimately playing the game. It can also financially damage operators when players cash out the free credits they have run up. Interblock’s innovative Simultaneous Bet Prevention technology firmly closes this loophole. Interblock’s first-of-its-kind Simultaneous Bet Prevention technology allows the operator to quickly and easily prevent equal bets simply by adjusting a new setting in the configuration program. By adjusting the win/bet ratio for valid bets in deci-

Global Gaming Business NOVEMBER 2015

mals, the operator can set a game quotient that represents a quotient of maximum possible win and summary of all bets, multiplied by 10. The setting is invisible to the player unless and until he oversteps the quotient. If the player places the same credit on opposite bets, then the betting table locks with the warning sign “Bets are not valid,” and the player must clear the last bet to continue the game. This setting is used for validating bets for roulette, baccarat, sic bo and craps. Side bets are not included in the game quotient calculation. Simultaneous Bet Prevention technology benefits players by providing a fair and level playing field for all casino patrons and benefits operators by closing this important loophole. For more information, visit interblockgaming.com.

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FRANKLY SPEAKING by Frank Legato

Smoke Shop And, of course, the program will offer a huge boost to local donut and pastry businesses. There are still some legal challenges to the plan, as marijuana is illegal in the state of South Dakota, and it is unclear what a new Congress and presidential administration will do with respect to the herb. But for now, all systems are go. The plants are being produced through a sophisticated cultivation operation, thanks to a partnership between the tribe and Colorado marijuana company Monarch America. Yes, that’s right. It’s a joint venture. In other news this month, Julio Iglesias says he’ll never play a Trump casino again, because of presidential candidate Donald Trump’s comments on illegal immigration. The Spanish singer, speaking to Barcelona newspaper La Vanguardia, said, “I’ve sang many times in his casinos, but I won’t be doing it again. He seems like an asshole to me…. He’s a clown—and my apologies to clowns.” Donald Trump, when told of the comments, responded in typical Donald Trump fashion: “Good. I don’t like his voice or his performances anymore, anyhow.” Of course, Donald Trump no longer owns casinos, except for a 5 percent stake in Trump Entertainment and letting his name be used on the Trump Taj Mahal in Atlantic City, on the façade of a building that very well could be the next victim of that market’s “right-sizing.” Hey, maybe the Flandreau Santee Sioux’s venture could be a model for saving the Taj. They could turn it into the “Trump Marijuana Resort.” Just don’t expect Julio Iglesias to sing there. All together now: EVERYbody must get stoned… VICT OR R INALD O

t says here that the Flandreau Santee Sioux Tribe, which has operated a casino in South Dakota for 25 years, is opening the nation’s first “marijuana resort” about a block from its Flandreau casino. It will be a state-of-the-art pot-growing operation that will set up shop in a former bowling alley on the reservation. According to the Forum News Service, plans are for a “club atmosphere,” which, of course, makes a former bowling alley perfect. I’m kidding. Actually, it’s going to be very nice. “We want to have good drinks, live music and maybe some slot machines in the lounge,” tribal lawyer Seth Pearlman told the In Forum news site. Oh, and around 80 pounds of weed for the customers every week, they estimate. Each guest gets to buy a gram of marijuana, enough for two to four joints. (Or one, for any number of guys I used to know.) The grams will be in neat little sealed plastic packets. Guests will order off a menu—a stoner wine list, if you will—including an astounding 65 strains of the ganj. Tribal President Anthony Reider, in fact, made the wine reference to a reporter. “You can compare the different strains to types of wine,” he said. “They can have a different taste and different feeling when consuming.” Of course, after the consuming, the result will be the same for all customers. As Bob Dylan once sang, “Everybody must get stoned.” And they’re going to have slot machines! I’d recommend Texas Tea Pinball, the newest game from IGT to embrace the recent “skill game” craze in the slot business. This particular skill game is a natural for the new pot lounge, and not because millennials will like it. On the contrary, at the new Sioux doobie palace, these games are sure to be mobbed by old dudes with bald heads and ponytails, in tie-dye shirts. Because there’s no better pinball player than an aging stoner, no matter what condition he’s in. Well, that’s what I’ve heard, anyway. More likely, the games in the new marijuana resort probably will be regular Class II slot games. I’m guessing they won’t have table games, because it would take forever to get a hand, roll or spin done: “Hey, buddy, what’s nine plus six?” “Ummm…………….. What?” “Sir, please put down your hoagie and place a bet.” This is all possible because of a U.S. Department of Justice memorandum last year stating that the federal government will not interfere with recognized Native American tribes operating marijuana businesses similar to those in states like Colorado, Washington and Oregon, where recreational pot is legal. Considering that Colorado made more money last year from pot taxes than it did from alcohol taxes, the Flandreau Santee immediately saw dollar signs. And they’re doing it right. Tribal officials have thought of everything in setting this thing up. There are a lot of cool safety measures put in place, like shuttles to and from local hotels.

NOVEMBER 2015 www.ggbmagazine.com

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TABLE GAMES

Roulette Riddle That spinning white ball has a unique appeal

elevised arm wrestling… Stonehenge… the ending of 2001: A Space Odyssey… Kardashian fascination… the enduring popularity of roulette… All things I don’t understand. Ding. Trust me. I’ve tried to learn to love roulette, spending hours I can’t count (and money I’m afraid to) in the pursuit of passion. Or at least proclivity. Even created my own betting system: it was half Grand Martingale and half Wink Martindale. Didn’t work out so well. Sure, the ball went “tic” and “tac” around the wheel, but in the end, I lost all my dough. Far be it from me to question why people like something so much, but that being said, I always questioned why people like this thing so much. And it’s a lot of people, because it’s a lot of tables. More than 6,000 around the world, including 2,000 in North America alone. Roulette is also huge in Australia, New Zealand, Latin America, Europe, Singapore, South Africa and the Philippines. The only bigger wheels in table games are blackjack and baccarat, but hey, whatever. Dostoyevsky never wrote a book about them, did he? For the longest time, I just didn’t get it. Well, of course, I got it. It’s one ball and 38 pockets (37 outside the U.S., presumably because of the metric system). It’s not exactly quantum mechanics. It’s not even Quantum Leap. It was roulette’s appeal, rather than its rules and its procedures and its payouts, that had always eluded me. So, in order to solve this riddle wrapped in a mystery inside an enigma—and to avoid the convection oven heat of Las Vegas in August—I visited six casinos in seven days in Australia, where the game reigns supreme. “The thing about roulette,” said the first expert I came across, a dealer from Crown Casino in Perth, “is that it’s part of our culture. You don’t even think about why you like it. You would have to think about why you don’t like it.” Say what, mate? Now my head was really swimming, and because of the Coriolis Effect, it was going in the opposite direction as usual. This

By Roger Snow

quest was just under way, and it was getting awfully existential awfully soon. Maybe I should just yank the plug on all this this silliness and boomerang myself back home. But guess what? A funny thing happened on the road to futility. A bulb lit up. Several, in fact. And as the journey progressed, day-to-day, stateto-state, casino-to-casino, so did the insight. Into the game. Into its intricacies. Now fully—OK, partially—enlightened to the ways of the wheel, here are a few observations and opinions for your consideration:

“

This is the perfect table game for electronic wagering. Because all players share the same result, as opposed to blackjack or pai gow poker, it’s scalable without sacrificing speed. Go to The Star casino in Sydney and you will see 100-plus gamblers playing on a single wheel.

”

• Players don’t “sweat the result.” They typically don’t hover over the wheel, like a helicopter getting ready to land, agonizing over every bound and bounce. Me? I’d be all up in there, using more gyrations than Shakira and more body English than Carlton Fisk when he hit that homer off the foul pole in the 1975 World Series. • Roulette, more so than any other table game, lets you have the win frequency you want. Inside, outside, columns and streets: from long shots to sure shots, roulette has it all. You could even—and someone, somewhere must have done

Global Gaming Business NOVEMBER 2015

this—bet 35 of the numbers, giving yourself a 94.6 percent chance (on a single-zero wheel) of winning one unit and a 5.4 percent chance of looking like the biggest doofus in captivity. • This is the perfect table game for electronic wagering. Because all players share the same result, as opposed to blackjack or pai gow poker, it’s scalable without sacrificing speed. Go to The Star casino in Sydney and you will see 100-plus gamblers playing on a single wheel. And those electronic terminals get absolutely pounded. Pounded, as in taking a lot of action; not pounded, as in taking a lot of abuse. Come on, this is Australia after all, not some outpost full of deranged and violent prisoners. Well, not any more. • For a game so steeped in tradition—350 years’ worth and counting—roulette is surprisingly amenable to newfangled gizmos: chip sorting machines that keep the dealers out of the muck of, well, mucking those colored chips back into order; reader boards that display the latest results; and software that sniffs out mathematical bias before the bad guys can. Final thought: There’s something else in the works, a nascent trend to add side bets and progressives to the game. Nothing has caught fire yet, but a handful of companies are out there rubbing sticks together, trying to generate a spark. Interblock has “Touchdown Roulette,” a side bet for its electronic games. The wheel manufacturer Cammegh has several new wagers, including “Lucky Symbols,” which is played in South Africa and Australia. Scientific Games has “Back 2 Back Roulette” and “Coverall Roulette,” while Galaxy Gaming offers “Trio-lette.” Just a few things to keep your eye on in the future. That is, when you’re not keeping your eye on the ball. Roger Snow is a senior vice president with Scientific Games. The views and opinions expressed in this article are those of the author and do not necessarily reflect the views and opinions of Scientific Games Corporation or its affiliates.

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G2E 2015 update

Gaming MANIA G2E confronts major issues, presents latest products By Frank Legato Keynote speaker Jeff Ma

lobal Gaming Expo (G2E) is always the climax of the year for gaming vendors and operators who want to stay on the cutting edge of the industry. In the past few years, broader coverage of iGaming, social gaming and compliance and regulatory issues have made it an important touchstone for the industry. But nothing topped G2E 2015 when it comes to pinpointing a changing industry is such a dynamic way. The keynote presentations, conference program and special events created an atmosphere of excitement and expectation. Millennials, skill games, daily fantasy sports and eSports dominated the discussions. And of course, the exhibit floor displayed the latest and greatest products and services bound to find their way into casinos worldwide. The new “Integrated Resort Experience,” a co-located trade show and conference dedicated to the all-important non-gaming goods and services, was a hit at G2E. But on Monday, the day before the exhibit floor opened, conference sessions kicked off with an intensive program that featured a unique collaboration between the National Indian Gaming Association and the American Gaming Association. Also on Monday, the fifth edition of G2E’s iGaming Congress featured a collection of sessions with expert speakers addressing the state of the iGaming industry today.

Entertainer Jerry Lewis received the Casino Entertainment Legend award at G2E

Gaming officials gather for G2E ribbon-cutting

Keynote Conscious On Tuesday, the opening keynote address was delivered by famous card counter Jeffrey Ma, head of the team of MIT students who used math to bring down blackjack games across Las Vegas from 1994 to 2001 and inspired the book Bringing Down the House and the movie 21. In a funny and engaging address, Ma used his experience as a card counter to demonstrate how data and analytics, which gave his famous team an edge over the casinos, can apply to the operation of a casino. On Wednesday, in his first G2E appearance as CEO of Caesars Entertainment Corporation, Mark Frissora used the G2E CEO panel to urge manufacturers to accelerate work on creating skill-based slots and other innovations that will appeal to the millennial generation. Frissora said he is “shocked” at the lack of innovation from the slot-makers with respect to the millennials, rejecting one popular view that the younger players will evolve into traditional slot players as they grow older. “Are you kidding me? I know my kids,” he said in predicting that millennials will never sit down to play traditional slots. “These games need to change,” he said. “The time is now.” Frissora was joined on the panel by Rush Street Gaming CEO Greg Carlin and Scientific Games CEO Gavin Isaacs.

Cirque, Thrones, Pinball Lead Slots But of course, the star of the show at G2E is always the exhibit floor. Major slot manufacturers saved some of their biggest game reveals for the week of 60

Global Gaming Business NOVEMBER 2015

G2E, with announcements of several new licensed slot themes made at or just before the big show. Scientific Games Corporation used the show to announce a new partnership with legendary Canadian show troupe Cirque du Soleil. The first game to come out of the partnership, KOOZA, is based on the troupe’s touring show. According to game designer Jason Stage, it was decided to recreate that show in the first game because people around the country are familiar with the touring show, as opposed to the many shows that are staged only in Las Vegas. Another theme revealed for the first time at G2E by Scientific Games is The Simpsons, a hilarious video slot based on the longest-running animated series in history. Clips from close to three decades of The Simpsons are woven into

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bonus rounds, highlighted by a new game mechanic called “Leap Motion” technology. IGT made a major skill-game showing among the top slot manufacturers with Texas Tea Pinball, replicating one of the slot-maker’s biggest videoslot hits of the 1990s and early 2000s in a game with a bonus that transforms the slot into a working pinball machine, with several launching balls (instead of pinballs, they are rolled-up armadillos) and flippers worked via the spin button or a touch-screen panel. The hybrid skill game reviving a major IGT proprietary brand was accompanied by major branded themes such as TMZ, a funny game based on the TMZ celebrity-gossip tabloid TV show. Aristocrat also chimed in with major licensed-game launches, headed by a funny video slot based on the beloved 1983 holiday film A Christmas Story. Bonus rounds put the player in the place of 9-year-old Ralphie Parker, in the famous scene where he is faced down by a scary department-store Santa at the legendary Higbee’s in Cleveland (which is now, coincidentally, Horseshoe Cleveland). At the show, Aristocrat launched its new Game of Thrones slot on the Arc Double. The game features three sets of reels—each representing one of the warring medieval royal families that duel on the popular HBO fantasy series. Konami Gaming launched its new Concerto cabinet with Wheel of the Imperial Eggs, a game featuring beautiful artwork under three stand-alone progressive levels. Also on the Concerto is Lamp of Destiny, on the new KP3+ platform. Konami also featured a new game on its innovative Rapid Revolver cabinet. In Lucky Sticks, free games and multipliers are set up by a classic Asian stick game that determines how many spots on the progressive drum display are active. Everi, in its first G2E display as a combined company since the acquisition of Multimedia Games by the former Global Cash Access, featured new proprietary titles such as Her Majesty, a hilarious take on the Elizabethan British royal family, and Inca Goddess, on the new MPX Premium platform, featuring bonus reel sets in the form of a pyramid. Other standouts from slot suppliers included Player’s Battle from Aruze, a two-player game with a competitive bonus based on the format of the company’s hit Player’s Battle; Dragon Fortune and Cinderella from Ainsworth, White Buffalo Dreamcatcher from AGS, Hauntsworth House and Big Prize Bubblegum from Incredible Technologies, and a groundbreaking new slot product from Casino Technology and Alto Gaming called Hot Rod—it is a slot built into a replica of a hot rod car. Speaking of groundbreaking technology, Spin Games showed a new product called “Veriti,” a virtual reality system that takes slot games to a whole new level. Veriti is centered around a pair of goggles that takes the user into a virtual-reality world—a 45-by-45-foot, 3D room. The nature of that space ultimately will depend on the slot theme in play.

AGA Gaming Hall of Fame Winners, Class of 2016

There are 45 digital social games loaded into the device. The initial room is essentially a dimensional theater, but eventually, it can be inside a pyramid, in the French Quarter or wherever else the game takes it. There were innovations on the electronic bingo side from multi-national supplier Ortiz Gaming. Ortiz Gaming debuted its expanded product line, including new game types, cabinets, systems and a variety of options for any gaming platform.

Hall of Fame The 2015 class inducted into the AGA Gaming Hall of Fame included several diverse new members: Victor Salerno of William Hill US, Lynn Valbuena of the San Manuel Band of Mission Indians and Navegante Group founder Larry J. Woolf. In a ceremony at MGM Grand’s Mansion, the three candidates were lauded by AGA and MGM Resorts Chairman James Murren, and AGA President and CEO Geoff Freeman. “Victor, Lynn and Larry are pioneers in the gaming industry and worthy of induction into a very special fraternity,” said Freeman. “Victor has been on the cutting edge of the sports gaming industry for decades, Lynn has been a staunch advocate for tribal rights and Larry’s business acumen has been the driving force for the success of several renowned properties.” Salerno is the first bookmaker to enter into the Hall of Fame. Valbuena is only the second Native American, following NIGA Chairman Ernie Stevens at last year’s ceremony. And Woolf helped to build the hotel where the ceremony was held, when he was the president of MGM back in the 1990s.

Casino Entertainment Awards In the third annual Casino Entertainment Awards at G2E, big names took center stage at Vinyl in Hard Rock. The magic duo Penn & Teller won top honors as “Casino Entertainers of the Year.” The act has a permanent showroom at the Rio. Little River Band was named musical artist of the year and Ron White won comedian of the year. Charo presented Jerry Lewis with the Casino Entertainment Legend award. The iconic comedian first performed in Vegas showrooms in the early 1950s. H. C. Rowe, executive director of the Colosseum at Caesars Palace, also received a Casino Entertainment Legend award, which recognizes lifetime achievement in the casino entertainment industry. The Showroom at Turning Stone Resort Casino was named showroom of the year. AVA Amphitheater at Casino del Sol won amphitheater of the year. NOVEMBER 2015 www.ggbmagazine.com

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GOODS&SERVICES SKILL RULES DETAILED kill-based gaming has officially arrived in NeSleasedvada. The Nevada Gaming Commission rerules that officially govern the addition of games that can be mastered through skill to the state’s casinos, a move meant to bring more millennials to the casino floor. The Nevada Gaming Commission’s new regulations split the state’s slot approvals into three categories—traditional games of chance, full skillbased games and hybrid games in which a combination of chance and skill affects players’ results. The approval of skill-based slot games in Nevada results from a push to attract younger players, who generally do not play traditional slot machines. The category of games that combine skill with luck recognizes many games that are already in the field that add skill-based bonus events to base games that are traditional chancebased slot machines. More of those games were launched at last month’s Global Gaming Expo, including a version of the 1980s arcade classic Space Invaders by Scientific Games and Texas Tea Pinball by IGT. Games such as these give the player an option when the bonus is triggered between playing a pure chance-based bonus such as a free-game round and playing the arcade-style skill game. Pure skill games are likely to take on more of the style of mobile-based, multi-level games like Candy Crush, or competitive shooter games. Experts speculate that casinos may have to create special social settings that resemble lounges or nightclubs where the skill games can be offered among a group of diversions including DJs, dancing and bottle service. At one G2E panel, regulators including New Jersey Division of Gaming Enforcement Director David Rebuck and GLI Director of Regulatory Compliance Chad Kornett joined Gamblit Gaming CEO Eric Meyerhofer in saying that the final form skill games take is still to be determined, including how play from all skill levels will still meet the minimum return-to-player (RTP) requirements of the various gaming states. The new skill-based rules were approved last summer by Nevada regulators at the behest of the Association of Gaming Equipment Manufacturers as a potential remedy to sagging slot revenues over the past few years, a fact many attribute not only to the lingering effects of the national recession, but to the high hold percentages typical to the most popular style of slot machine, the multi62

Global Gaming Business NOVEMBER 2015

line penny genre. The millennial generation (those born after 1980), which is larger than the baby boomer generation currently dominating the casino floor, is seen as entering prime earning and spending years. The push by AGEM and regulators both in Nevada and New Jersey to create games that appeal to them is seen as a proactive response to the fact that the oldest millennials are now over 35 years old.

IGT SIGNS SYSTEM DEAL WITH WYNN nternational Game Inounced Technology anthat Wynn Resorts has signed an agreement to install a comprehensive suite of IGT systems applications at Wynn Las Vegas, Wynn Palace in Macau and Wynn Everett in Massachusetts upon completion of their construction. “We are pleased to provide our comprehensive system solutions and applications to complement IGT’s leading floor share of games at Wynn Las Vegas,” said Renato Ascoli, IGT’s CEO of North American gaming and interactive. “IGT systems are designed to optimize floor efficiency and drive player engagement, and Wynn Resorts can leverage our unique applications to provide guests with unparalleled gaming experiences and personalized service.” “Our guests are our top priority at Wynn Resorts, and IGT systems empower us to connect with players in new and meaningful ways that drive fun and excitement,” said Maurice Wooden, president of Wynn Las Vegas. “IGT systems applications will help us deliver customized entertainment experiences and access to resort amenities that truly make our guests feel special.” The IGT server-based systems installation includes an upgrade to IGT Advantage 9.x system integrated with sbX application, including Floor Manager and a host of bonusing and play-enhancing applications. The installation also includes intuitive Service Window applications such as the Message Blast software, which offers relevant communications to players, and bonusing and incentive-based applications such as Carded Lucky Time, ReturnPlay, Virtual

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ARISTOCRAT SIGNS DEALS WITH CAESARS, STATION

in the Las Vegas Valley. Buffalo Grand takes Aristocrat’s most popular theme, the multi-line video slot Buffalo, and super-sizes it on the new Arc Double cabinet. The imposing Arc Double uses two curved 42-inch monitors in a giant display that can accept content from the slot-maker’s complete library. Buffalo Grand is now live at Boulder Station, Green Valley Ranch Resort, Palace Station, Red Rock Resort, Santa Fe Station, Sunset Station, Texas Station, Fiesta Henderson and Fiesta Rancho.

lot manufacturer Snologies Aristocrat Techannounced

DESERT DIAMOND PICKS SYNKROS

Drawing Manager, Random Riches and Celebration Prizes software products. The sbX Taxable Accrual application enables players to quickly process their jackpots for tax purposes.

two major deals with large casino operators. Aristocrat has Aristocrat’s Buffalo Grand is reached an agreenow available at Station ment with Caesars Casino properties in Las Vegas Entertainment that places 200 premium lease games across the Caesars gaming empire. The deal is the single-largest Class III recurring revenue deal in the company’s 60-year history. The installation marks the global debut of Aristocrat’s award-winning Arc Double and Behemoth cabinets, as well as the debut of the wildly popular Britney Spears slot game, which hit Caesars’ casino floors in August. Additional popular titles making a splash with players include The Big Bang Theory, Batman Classic TV Series and Ted. “We are excited to partner with Aristocrat in the branded game space,” said Melissa Price, Caesars senior VP of enterprise gaming. “We are continually searching for ways to innovate the gaming floor to deliver the best, most exciting experience for our players. These titles resonate with our guests and provide a premium gaming experience. “Additionally, we are thrilled to be the first gaming company to feature the Britney Spears slot game, launched in early August. Britney’s highly successful resident show at Planet Hollywood has brought a lot of excitement to that property, and we have experienced that same level of enthusiasm for her slot game on our casino floors across the country.” Aristocrat Senior Vice President of Global Gaming Operations Matt Wilson added, “It is an exciting opportunity to partner with Caesars Entertainment in a rollout of this magnitude as our products aim to create a total player experience. Caesars is investing in our industry-leading products, keeping their floors fresh and their players engaged with cutting-edge games and cabinets that deliver the world’s greatest gaming experience.” Also last month, Station Casinos and Aristocrat partnered to launch the manufacturer’s new Buffalo Grand slot machine at nine Station properties

onami Gaming announced that its Synkros Kby Desert casino management system has been selected Diamond Casino-West Valley, Arizona’s newest casino. The casino, owned and operated by the Tohono O’odham Gaming Enterprise, is slated to open later this year with Konami’s Synkros as its central gaming enterprise management suite. “As construction continues to take shape at the property site, the technology and marketing tools we have available through Synkros will allow us the flexibility and control to empower West Valley for long-term success,” said Don Ayers, director of

slots for Desert Diamond Casinos & Entertainment. “It’s just the beginning, but with Synkros at the core we have access to a number of important industryleading technology features down the road, like SYNKiosk and Advanced Incentives Bonusing.” West Valley is Desert Diamond’s fourth casino property, with other locations in Tucson, Sahuarita and Why. West Valley is set to launch SYNKiosk’s self-service enrollment stations, thereby allowing patrons to create and/or reprint a valid player loyalty card in under 60 seconds. The new resort also plans to introduce floor-wide community bonusing with Synkros’ popular SuperSeries system-delivered game themes such as Tomb Treader and Mustang Mayhem. “Our customers will definitely experience new promotions and bonus activities that are memorable and unique to West Valley,” said Ayers. “We look forward to providing integral economic and community advancement to the surrounding area for many years to come.” “Desert Diamond maintains a strong reputation for providing world-class gaming entertainment, and Konami is pleased to work alongside their organization to ensure this new construction is empowered by the latest systems technology through each stage of its business growth,” said Scott Richards, system sales director for Konami.

NOVEMBER 2015 www.ggbmagazine.com

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SEPTEMBER 27-29, 2016 SANDS EXPO CENTER LAS VEGAS

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PEOPLE LOVEMAN JOINS AETNA

aesars Entertainment Corp. Chairman and former CEO Gary Loveman has joined the Aetna insurance company to oversee a new division for the Hartford, Connecticut-based provider. Gary Loveman Aetna announced last month that Loveman will become an executive vice president and president of a newly expanded health services organization, which now will include Aetna’s consumer business. Loveman will oversee integration of the consumer capabilities into a “more affordable end-toend consumer experience.” Loveman, who resigned as Caesars CEO at the end of June, will remain chairman of Caesars Entertainment and continue to oversee the bankruptcy reorganization of its largest operating division.

GOLDEN ENTERTAINMENT NAMES TOP OFFICERS

as Vegas-based Golden Entertainment Inc. recently announced its executive management team has been restructured due to the recent merger of Golden Gaming and Lakes Entertainment. Blake L. Sartini will serve as chairman of the board, president and chief executive officer of Golden Blake L. Sartini Entertainment, Inc. Previously, Sartini served as president and chief executive officer of Sartini Gaming and was the founder and chief executive officer of Golden Gaming LLC. Sartini is a member of the UNLV Foundation’s board of trustees. Matthew Flandermeyer will serve as executive vice president and chief financial officer of Golden Entertainment Inc. Previously, he was chief financial officer for Golden Gaming and in 2013 was also appointed as the company’s vice president of strategic development. Flandermeyer also was chief financial officer at Global Restaurant Systems. Stephen A. Arcana was named executive vice president and chief operating officer at Golden Entertainment. Prior to the merger, he was chief operating officer for Golden Gaming. Arcana also held several executive positions with Station Casinos and worked in hotel operations and food and beverage

at the Sands hotel in Atlantic City. Blake L. Sartini II will serve as senior vice president of restricted gaming for Golden Entertainment. Previously, he was vice president of operations for Golden Route Operations. In his new position, Sartini will oversee the company’s 48 taverns in Nevada plus the distributed gaming operation. Sartini joined Golden Gaming in January 2010 and served as executive marketing manager for Golden Casino Group. Jeremy Jenson will serve as vice president and general manager of the Pahrump Nugget Hotel & Casino, Gold Town Casino and Lakeside Casino & RV Park, all in Pahrump, Nevada. Previously, Jenson was general manager and pit boss for Golden Gaming’s Pahrump Nugget. Skylar Dice has been promoted to vice president and general manager of Rocky Gap Casino, near Cumberland, Maryland, responsible for the overall operations of the resort, which employs more than 450 people. Prior to the merger, he had been director of gaming operations at Rocky Gap since February 2013.

INTERBLOCK NAMES NEW VP OF OPERATIONS

nterblock, an international manufacturer of electronic table games, has named Todd Sims, a veteran of gaming sales and service, as its new vice president of operations. He will operate out of the company’s American Todd Sims headquarters in Las Vegas. Interblock CEO John Connelly praised Sims: “As Interblock continues to expand globally, his experience in creating a costeffective service and logistics infrastructure, combined with a customer-centric focus, will be critical to our success.” Previously, Sims was vice president of customer service at Bally Technologies, where he helped launch Bally’s Alpha platform. He was also director of sales for Four Winds Interactive.

ARISTOCRAT PROMOTES MATT WILSON

ustralia’s Aristocrat Leisure Ltd. has named Matt Wilson, former senior vice president of sales and marketing, to the position of senior vice president of global gaming operations. Wilson takes over responsibility for Aristocrat’s

global recurring revenue strategy for Class III markets, replacing former executive Dallas Orchard, who left the company in September. Wilson joined Aristocrat in 2004 and has held a Matt Wilson number of key positions in a variety of markets. Between 2008 and 2012, he oversaw Aristocrat’s rapid expansion in the Asia Pacific region as the head of the sales team. In 2012, he was promoted to vice president of marketing for the Americas, and in August 2014, was promoted to senior VP of sales and marketing for North America.

GLI AUSTRALIA NAMES COMPLIANCE MANAGER

he GLI Australia division of leading gaming testing company Gaming Laboratories International named Andrew Campbell as manager of compliance and quality assurance. The appointment is the result of continued growth in the region, especially in the Adelaide laboratory where Campbell is based. In his new position, Campbell is responsible for ensuring all gaming licensing obligations are met as well as overseeing the maintenance of the Quality Management System, ensuring that the quality of testing has been carried out in accordance with this system.

GGB

November 2015 Index of Advertisers

AGA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .49 AGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21 Agilysys . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39 Ainsworth . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 BMM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25 Casino Careers . . . . . . . . . . . . . . . . . . . . . . . .59 Colliers International . . . . . . . . . . . . . . . . . . . .45 Data Spade . . . . . . . . . . . . . . . . . . . . . . . . . . .31 Everi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15 Fabicash . . . . . . . . . . . . . . . . . . . . . . . . . . . . .47 Fantini . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .63 G2E . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .64 GLI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13, 28 Greenberg Traurig . . . . . . . . . . . . . . . . . . . . .33 IGT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 Innovation Group . . . . . . . . . . . . . . . . . . . . . .67 Konami Gaming . . . . . . . . . . . . . . . . Back Cover LT Game . . . . . . . . . . . . . . . . . . . . . . . . . . . . .62 Rainmaker Group . . . . . . . . . . . . . . . . . . . . . .37 Red Square Gaming . . . . . . . . . . . . . . . . . . . . .9 RPM . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14, 17 Scientific Games . . . . . . . . . . . . . . . . . . . . . . .29 Spin Games . . . . . . . . . . . . . . . . . . . . . . . . . . .27 UNLV Foundation . . . . . . . . . . . . . . . . . . . . . .53

NOVEMBER 2015 www.ggbmagazine.com

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CASINO COMMUNICATIONS

Renato Ascoli Chief Executive Officer, North America Gaming/Interactive, IGT

he sale of International Game Technology to GTECH was completed more than six months ago, and the new executives are getting comfortable with the acquisition. Renato Ascoli, formerly a senior executive with GTECH, has been given responsibility over the company’s all-important North American and interactive markets. DoubleDown Casino, one of IGT’s most profitable assets, is also under his oversight. He spoke with GGB Publisher Roger Gros and Editor Frank Legato at G2E in October. To hear a full podcast of this interview, which gets into skill games, tournaments and the discussions about slot payback percentages, visit ggbmagazine.com. GGB: It took a while to put together, but now it looks like the strengths of the combined companies are really coming out. What has been your strategy since the merger?

Renato Ascoli: Yes, it took some time, but the good news is that we were well-organized and prepared since day one. First, we decided to have a single brand and decided that IGT would be the home for all the new products. We organized a single sales force, and it was actually ready to go since June. We wanted a single portfolio of games, so the legacy IGT would know more about the GTECH part, and vice versa. Legacy IGT was strong in VLTs, in distributed markets and of course, in casinos. They’re strong in casino systems, and GTECH was less into that. GTECH had a strong presence in interactive, particularly in the central systems and in the CRM applications. IGT was always strong on content. So, it’s a natural blend. So what are your plans going forward?

Today, we’re trying to build the new success story for IGT, on some specific pillars. And I always remind my team, the first pillar would be 66

Global Gaming Business NOVEMBER 2015

“customers first,” which is not just a motto. It’s a day-by-day attitude. And we think we began doing that with a very important process that legacy IGT had to form a CAB—a customer advisory board. So, we listen closely to our customers. In June, more than 40 customers actually were very clear and open with us indicating what we should or should not do anymore. And I’m so thankful for them. The second item, I think, is the player’s voice. So, this is probably the area where my team, the legacy GTECH, is probably bringing more knowledge, in terms of operating into a B2C ecosystem. I personally have been managing B2C operations throughout my life, so I did research and testing, and we’re introducing this discipline in the IGT world as well. We would never send out a product to the market without a thorough testing, in field, before doing that. And we’ll definitely make the decision to recall a product from a testing phase in the field, if the product will not perform to a certain level. What has been the reaction from your customers to these changes at the company?

I like to be conservative. But it would be fair to say that, particularly after the CAB, our customers realize that we are open to listening and suggestions. They were actually suggesting we use the same platform, the same technology. They ask us very vocally to use a station charge for smartphones on the boxes, and we did. We are not afraid to admit we may make mistakes, because I think we learn from mistakes. So, I’m asking all the team not to be dismissing of this fact, but to go deep into the root cause of that, and try to make some changes. Tell us about the new technology. Your True 3D has now been applied to Wheel of Fortune, merging popular IGT titles and new technologies.

Wheel of Fortune has been the leader in the

market for years, and now it’s on a technology that proved to be successful in the marketplace, True 3D with Sphinx. But even more than that, I think that probably the quintessence of the company coming together is probably the OnPremise solution that we offer. We’re about to introduce it to the market by the end of this year on the MGM platform. So players sitting in a bar or in a restaurant, or anyplace else in any time of the year, can place a bet, or play a casino game on their iPhone. That solution is bringing together the interactive technology that we are bringing with GTECH, with the mobile technology that we brought with the recently acquired U.K. company Probability Plc., with our sports-betting capabilities, that we developed starting from Italy, combined with the distribution of casino games, and connected to a central system, which is the legacy IGT true capacity. So, doing this is not easy, but it is what we decided to do, just to demonstrate to the market there could be value in bringing this different multifaceted element of company together. And this leads right into serving the millennial generation, doesn’t it?

Definitely. Because it’s a way to let them try the opportunity to place a bet on sports, or enjoy a slot machine, in an environment that is more friendly to them. They usually like some features that probably a standard casino player would not like that much. They like leaderboards, for instance. They always want to know where they stand, compared to someone. They want to be, and to appear in the top of a list. They want to be in control of the game. They want to tweak and change the color, the functionality, so we need to provide these kinds of things. And of course, they like the skill component. So, we need to start from there. Let’s introduce fresh blood into our business.

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