InfinityGaming www.gaming-awards.com | ISSUE AUGUST2015
THE ONLY MAGAZINE YOU NEED
MICHAEL SILBERLING
CEO OF AFFINITY GAMING
SUMMER SPECIAL EDITION
BURSTING WITH INTERVIEWS & ARTICLES
GAMING + ARTICLES + business + global + ONLINE + NEWS+ APPS + AWARDS + etc
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AUGUST 2015
12 VEGAS SKILLS Christina Thakor-Rankin
08 MICHAEL SILBERLING CEO Affinity Gaming
ANDREW JARRETT Director - Digital Jersey
Opinion Disclaimer: The views and opinions expressed in all external articles are those of the authors and do not necessarily reflect the official policy or position of The Infinity Gaming Magazine Any content provided by our feature writers or authors are of their opinion, and are not intended to malign any religion, ethic group, club, organization, company, individual or anyone or anything.
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AUGUST 2015
4 EDITOR NOTES Lana welcomes you to the August edition of Infinity Gaming Magazine.
6 OUR WRITERS Meet our feature writers, the superb writers on our rosta.
08 MICHAEL SILBERLING Boss of Affinity Gaming
12 VEGAS SKILLS
30
Is Skill gaming the answer?
22 CUSTOMER EXPERIENCE The APP Man looks at improving the
STAY APPY Liz Karter article on the dangers of App games
customer experience
24 ANDREW JARRETT Director of Digital Jersey
22
CUSTOMER EXPERIENCE Paul Swaddle’s latest article on the App world
30 STAY APPY APP GAMER Liz Karter excellent article
36 ONE SPIN TOO FAR David Newstead joins the team
44 4 STEPS TO VALUE John Edmunds tips to success
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AUGUST 2015
A note from the editor CONTACT US Clever Duck Media Centrix@Keys Keys Park Road Staffordshire WS12 2HA UK Tel: +44(0)1543 478 889 PRODUCTION Clever Duck Media Centrix@Keys Keys Park Road Staffordshire WS12 2HA UK
It’s the summer holidays so rest & relax with Infinity Gaming Magazine
PUBLISHING Infinity Gaming Magazine is operated by © Clever Duck Media Ltd ®
Lana Thompson - Editor
Welcome to the August edition of the Infinity Gaming Magazine and we hope you are enjoying the summer Welcome to the summer edition of In-
We are also delighted to announce that
finity Gaming Magazine, it may very
the nominations for the 9th Annual In-
well be summer and normally a quiet
ternational Gaming Awards are open till
time for the industry but not a present.
the 8th October and we will shortly be announcing our stunning line-up of In-
We have acquisitions going on with
ternational judges, we really have some
bwin.party entertainment and only re-
brilliant new judges this year.
cently the conclusion of the Ladbrokes and Gala Coral deal, not to mention the
So I will leave you to read the magazine,
troubles for Caesars with their debtors,
wish you a wonderful remainder of your
all goes to show it is a good time for the
summer and will be back with you in
lawyers this summer!
September with more unique content as ever.
Back to the magazine we welcome David Newstead to our writers list and
Enjoy the magazine.
welcome back Liz Karter also, both will be superb additions to our articles sec-
So, “To Infinity and Beyond!”
tion I am sure. Regards, Also inside we have two wonderful interviews with Michael Silberling and
Lana
Andrew Jarrett, as always exclusive to the magazine.
INFINITY GAMING
The Editor
Company Reg. No. 687 1018 (Registered in England) V.A.T reg. no 972 6372 91
Sponsorship Opportunities Colin@cleverduckmedia.com Business Partnerships Svetlana@gaming-awards.com Marketing & Advertising claire@cleverduckmedia.com Editorial Content & PR media@cleverduckmedia.com
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AUGUST 2015
Infinity Gaming Magazine
A magazine is only as good as the content inside and with some of the leading specialists within th prducts, technology and current affairs with the sector the Infinity Gaming Magazine is delighted t
Paul Swaddle A self-confessed ‘gadget geek, Paul Swaddle has been working at the leading edge of mobile technology for the past 15 years. He co-founded Pocket App in 2011 to bring the creative and technical development elements of mobile technology together under one roof. This unique approach continues to differentiate Pocket App in today’s increasingly competitive landscape.
Working across a range of communications disciplines such as acquisition, loyalty, retention and customer development, Paul understands the importance of a strategic and coordinated marketing approach, particularly between on and off-line communications. In the past decade he has enabled brands as diverse as Kellogg’s Fruit Winders, Barclays and Loaded magazine to get the best out of mobile.
With over 16 years’ industry experience building high-performance teams and successful businesses around the world, John Edmunds is passionate about enabling people and technology deliver superior business results. As Chief Marketing Officer at FutureLogic, John was at the heart of FutureLogic’s digital transformation from hardware supplier to software solutions provider and subsequent acquisition by JCM Global. As an experienced thought-leader, strategist and writer, John is a regular contributor
to numerous gaming publications and has been guest speaker on technology discussion panels and industry forums in Buenos Aires, Las Vegas, London and Toronto. John works with technology companies in the US and UK helping deliver superior business results and connecting start-ups and lower middle-market firms with private equity development and growth capital. John can be reached on +1.818.398.8028 or johnedmunds1975@gmail.com.
With over ten years experience in the industry, David Newstead has seen online casino trends come and go. Primarily involving himself in the affiliate industry, he has quickly gained an appreciation for the demands of this fast paced marketplace. Today, he refines his efforts into expressing his opinions for numerous industry journals. Read more
about his adventures down at www. slotschoice.com.”
John Edmunds
David Newstead
general manager and CEO
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AUGUST 2015
Contributing Writers
he gaming industry. With specialised articles covering customer service, the gaming law, new to showcase our superb line-up of contributing writers.
Christina Thakor-Rankin Christina is Principal Consultant at 1710 Gaming Ltd, a specialist betting and gaming consultancy, delivering a range of services including licensing and compliance (incl. regulation, money laundering and social responsibility), business start-up, training and strategic re-engineering, project management, research, business analysis and development, to start-ups and established multi-national
operators and providers, gambling regulators, law enforcement and government agencies, media, and specialist interest groups and associations within the sector, in both established and emerging markets across the world. www.1710gaming.com
Liz Karter – Psychotherapist specializing in women and problem gambling iz Karter is a specialist in gambling and women and has worked as a therapist in gambling addiction since 2001. Liz is also author of the book “Women and Problem Gambling” published in March 2013. In January 2010 having worked with all leading UK problem gambling treatment agencies, and having successfully established the first UK groups for women with gambling addiction, Liz launched Level Ground Therapy. A treatment service in the City of London, Level Ground
specialises in meeting the individual needs of women with gambling addiction. Throughout her career Liz has been regularly consulted by the media regarding her specialisation and has made frequent national TV and radio broadcasts including This Morning, Radio 4 You and Yours and Women’s Hour and given numerous national newspaper and magazine interviews.
Would you like to feature here? Infinity Gaming Magazine is always looking for new feature writers, if you have something to say and feel the global gaming industry would be interested then drop us a line and we can explain the benefits of working with a global reaching industry publication.
Fore more details on becoming a feature writer contact Paul Jordan our Editor at madia@cleverduckmedia.com
general manager and CEO
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AUGUST 2015
Interview with Michael Silberling CEO at Affinity Gaming
Michael, many thanks for taking the time to speak to us today. Could we start by asking you what your role is with Affinity Gaming and could you also explain to our readers about Affinity Gaming?
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MS: Hello, I’m Michael Silberling, the Chief Executive Offer for Affinity Gaming headquartered in Las Vegas, Nevada. Affinity Gaming has 11 properties in 4 states. Our properties are all unique, ranging from our
destination resorts, Primm Valley Casino Resorts in Primm, Nevada to our quaint, local’s property Mark Twain Casino in LaGrange, Missouri. You have been in the role less than
AUGUST 2015
The boss of Affinity Gaming speaks to Infinity Gaming Magazine
a year. What attracted you to the company and what are the challenges as CEO of Affinity Gaming? MS: I saw a great opportunity with Affinity Gaming; the business was in decline while the macroeconomic environment seemed to be improving. My background includes extensive regional market experience, turnarounds and creating value propositions for undercapitalized assets. When you add all of that up, Affinity Gaming was a complementary fit for my skill set. My biggest challenge thus far has been formulating and communicating our new vision for Affinity, and creating alignment between corporate and field organizations. Part of this exercise was creating a very strong team at the corporate level, and I’m happy to say the results provide proof that we’re moving in the right direction. The Company has 11 properties with five spread over Nevada, three in Colorado, two in Missouri and one in Iowa. Were the casinos purpose-built or acquired? MS: All of the properties in our portfolio were acquired, not purpose-built. Which of the properties is the flagship of the company? MS: Primm Valley Resorts would be considered our flagship property based on revenues and resort amenities. Silver Sevens is considered another flagship property
based on its location in the largest U.S. gaming market, Las Vegas. How many employees does Affinity Gaming have? MS: Affinity has more than 3,300 employees. How did Affinity Gaming start and when? MS: Affinity Gaming started in 2011 following the reorganization of Herbst Gaming. Before working with Affinity Gaming, you had a long connection with Harrah’s and Caesars, which saw you work for the company in the U.S., and finally the U.K. and internationally. There has been much written about Caesars and its financial problems. Where did it all go wrong for the company, and in your opinion, how can the company survive going forward?
working for Harrahs and Caesars, and I still have many friends that work for the company. I believe that Harrahs and Caesars manage their markets and individual properties very efficiently. They took on sizeable debt during the onset of the global financial crisis, but I expect the company to emerge from bankruptcy as an industry force. As mentioned, you finally were based in the U.K. for Caesars. Was it a mistake in the end for Caesars to buy London Clubs, given the international struggle of the company, and do you think the company needs to sell off those parts? MS: UK gaming was challenged throughout the industry due to the smoking ban, the removal of Section 21 terminals, marginal tax rate increases, the onset of the global financial crisis, and not to mention, the government pulling back on allowing large casino resorts to be built.
MS: I learned the casino business
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AUGUST 2015
Michael Silberling CEO at Affinity Gaming
strength of lobbying in the U.S. too much? MS: For a time, I led the lobbying effort on behalf of the UK casino industry, but have less experience on the national level in the US.
After my arrival in 2008, the business went from loss-making to profitable, with good growth in the years that followed. The UK business is in good hands with their current management, and I believe that there is opportunity for further improvement with support of local management to refurbish and renovate the existing estate, and growing EMEA (European, Middle Eastern, and African) businesses through acquisition and development.
company currently have any presence in the online gambling sector? MS: To date, online gaming has underperformed expectations, primarily due to limited geographic reach in the United States. However, we are currently in the social gaming category, and we’ve seen promising results to date, albeit on a small scale. There seem to be two camps in the U.S., one that opposes online gambling and those in favor.
Before we let you go, Michael: What is the best part of being a CEO and what is the worst?
Back to your current role with Affinity Gaming: As mentioned, the company has 11 properties. Are there any plans to extend the portfolio further?
MS: I’m in favour of land based gaming being legal and accessible in every jurisdiction in the US. As online gaming continues to grow worldwide, land based operators need to recognize this trend and adapt.
MS:The best part of being CEO is building a high performing team that is improving our organization. The worst part is, as my role becomes more senior within an organization, the time it takes to implement change is significantly different than when I was a GM at the property level. My adaptation to this change is realigning my expectation of instantaneous results.
MS: We’re always looking to improve our existing business and optimize our portfolio. What are the company’s thoughts toward online gambling? Does the
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Lobbying plays a big part in U.S. politics and getting things done in Washington. As you lived in the U.K., there it is less obvious. Is the
Generally, the key to any lobbying effort include active dialogue, education, and mutual understanding of goals and objectives. This leads to mutual respect of all issues and leaves the casino industry, gaming regulators as well as the government in a better place.
AUGUST 2015
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Vegas, Skill and Social Responsibility By Christina Thakor-Rankin
F
or many the recent announcement that
have grown up in a world of immersive and
By bringing the world of skill based video
Vegas is set to bring the worlds of slots
interactive technology, where success is
games into casinos, and replacing glory
and skill closer together by allowing skill-
increasingly linked to the attributes of the
and kudos with gamble features and cash,
based slot games has been met with not
individual, the traditional bricks and mor-
a natural rite of passage is forged between
so much a case of why, rather, what took
tar casinos with their flat one dimensional
gaming and gambling; from the teenag-
them so long?
random number generator driven slot
ers in the bedroom playing for kicks, to
games have little attraction.
the college kids in frat houses playing for
Faced with the growing dual challenge of
kudos, to the young adults in the casinos,
attracting a newer, younger generation of
The games developers are faced with the
customers to gambling, whilst retaining
prospect of their customers growing up
the interest of an older gaming trying to
and starting to turn their backs on the
It sounds like the perfect marriage. As eve-
re-capture their youth, it seemed almost
activities of their youth in favour of more
ryone knows however, what sometimes
inevitable that it was only a matter of time
grown-up adult entertainment activities,
seems like a match made in heaven can
before the two worlds of young adult gam-
just at the time when they probably have
all too often turn into the coupling from
ing and adult gambling, would at some
more disposable income to spend on lei-
hell. In this case, what initially looks to be
point reach out to each other.
sure then when they were playing their
a nailed on recipe for commercial success,
games.
could, if not handled with care, turn out to
For the new generation of millennials, who
now playing for cash.
be an even bigger cause for social concern.
By taking a game played by teenagers in their bedrooms where skills are rewarded with kudos, and offering the same thing to adults where skills are rewarded by cash, the sector risks breaking its own code of practice in ensuring that their games do not appeal to youngsters. Even more dangerous is the fact that unless the versions offered to those who are below, and those who are above, the legal age of gambling are markedly different, for the first time ever, the sector will be making a conscious commercial connection between the two groups. This is potentially a very dangerous line to walk - especially
THE FUTURE
given that Sheldon Adelson and the antiinternet gambling lobby’s primary objection is that allowing online gambling will
By taking a game played by teenagers in their bedrooms
open the door to unscrupulous operators
where skills are rewarded with kudos, and offering the
grooming underage gamblers.
same thing to adults where skills are rewarded by cash,
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AUGUST 2015
2010 saw Playtech embark on one of the industry’s most ambitious spending sprees
The development of these games is still
and addiction.
in its very early stages, and it seems
young adult with an existing gaming addiction being able to walk into a casino
inconceivable that between them the
There is a very real risk that allowing
where the carrot of kudos is replaced
game developers, the game studios,
gambling versions of video gaming may
with cash, and where loss is linked not
the operators and the regulators are
result in an existing gaming depend-
to gambling but personal abilities, must
not cognisant of this danger and are
ency becoming an invisible, hidden
surely be a concern.
already looking at ensuring that this is
but even more destructive, gambling
addressed well in advance of the first
addiction. Like gambling, for most peo-
There is also the reverse prospect of a
games being launched, to avoid undue
ple, gaming is a perfectly safe, enjoy-
gambling addict developing a gaming
criticism being levelled at the sector.
able activity, but just like gambling, for
addiction. Chasing the win will no long-
a minority, gaming can become an un-
er be dependent upon just chance or
For this reason, the danger of young
controllable compulsion. Indeed, recent
a random number generator. With skill
adult gamers being enticed into gam-
2015 studies estimate that 10 to 15 %
based gambling games, the win will be
bling is perhaps one of the lesser con-
of gamers exhibit signs that meet the
dependent upon that individual’s skills.
cerns linked to the prospect of skill
World Health Organization’s criteria for
Aside of the obvious ‘lost’ time spent
based slots games. The bigger issues
addiction. Granted the range of game
‘practising’ to prepare for the big win
potentially relate not to the young but
types and size of audience in gaming is
success in the bonus round will provide,
to adults, and centre around what is al-
significantly larger than the measures
there are the other less physical, more
ready known about problem gambling
use for gambling, but the prospect of a
psychological side-effects to consider.
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AUGUST 2015
Problem gamblers are known to suffer from bouts of low self-esteem and periods of self-loathing after a losing session
Vegas, Skill and Social Responsibility
against a random number generator - how much keener & more damaging will this be where the loss
way in 2011 testified that he prepared
Problem gamblers are also known to
for the assault by playing the first-per-
personalise relationships with games
a direct result of a lack of
son shooter video game Call of Duty:
and machines, believing that the game
Modern Warfare 2. Further, research has
‘owes’ them, or ‘has it in for them’. In
personal skill?
also linked violent video games with
such cases, every losing spin is per-
aggressive behaviour, with outcomes
ceived as a personal slight or attack,
moderated only slightly when cultural
resulting in increased levels of frustra-
biases and gender are taken into con-
tion and anger, and on occasion culmi-
sideration.
nating in a physical attack on the ma-
is perceived as being as
Problem gamblers are known to suf-
chine. How would it be if in the future
fer from bouts of low self-esteem and periods of self-loathing after a losing
Whilst the comment from the AGEM is
the perceived slight or attack is linked
session against a random number gen-
clearly intended as just an example of
directly to a player’s personal skill and
erator - how much keener and more
how the concept of skill might be incor-
ability, whether it be driving a car rally
damaging will this be where the loss is
porated into existing gambling games,
or shooting enemy plane. What if, in a
perceived as being as a direct result of a
the potential dangers and criticisms
nation where the right to bear arms is
lack of personal skill?
which might be levelled at the industry
entrenched in the constitution, the per-
are all too obvious. If the aim of adding
ceived slight is in the context of a bonus
There is also the wider, social, moral
skill is to attract and engage a younger
round where a frustrated, angry player’s
and ethical question of gambling and
demographic this will only be possible
gun shooting skills were bested by a
the prospect of financial reward - win-
if the new games mirror the more pop-
machine?
ning money, being associated with what
ular games – which at the start of this
in some cases will be acts of violence or
year included Grand Theft Auto and Call
The introduction of skill has the poten-
criminal behaviour.
of Duty. The fact that Call of Duty is al-
tial to revolutionise the sector – a new
ready offered as a slot game means that
concept appealing to a new genera-
The Association of Gaming Equipment
it will most inevitably be one of the first
tion of customers. But as the worlds of
Manufacturers – one of the advocates
to combine an element of skill.
gambling and gaming pull ever closer
for the bill – stated that a slot machine’s
together so too do the dual concerns
normal 88 per cent payback might in-
Whilst the incident in Norway, is thank-
around those players in both camps
crease to 98 per cent if the gambler is
fully a rarity, the link between problem
who are unable to manage their play.
“particularly skilled” at classic game-
gambling and aggressive and violent
play mechanics such as “shooting down
behaviour is already established, with
If skill is to successfully unite the worlds
enemy planes in the bonus round or
known recorded instances of physical
of gambling and gaming - it must also
outracing your friends in a road rally.”
attacks on both gaming machines and
work in parallel to unite the concepts of
staff after a heavy losing session.
responsible gambling and gaming.
The man who killed 77 people in Nor-
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AUGUST 2015
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AUGUST 2015
Scientific Games post Q2 revenues increase but profits down
Scientific Games posted their Q2 re-
With revenues up but profits down
expected further enhancement of oper-
sults for 2015 showing a rise in rev-
Isaacs was in a positive mood about the
ating margin and cash flow in the sec-
enues from $416.9 million last year to
firm’s performance in the quarter, say-
ond half of 2015 and beyond.
$691.5 million this, however profits for
ing that its focus is to achieve further
the company slid from $3.6 million in
revenue growth during the remainder of
“We expect the progress from rapidly
Q2 in 2014 to a loss of $100,000 in the
2015 and into 2016.
implementing our integration strategies
current quarter.
during the first half of 2015 will be fa“Throughout the second quarter we
vourably reflected in our performance
Gavin Isaacs, president and chief execu-
made further significant progress on
during the second half of this year.”
tive of Scientific Games, said the com-
implementing our key initiatives target-
pany was able to make “significant pro-
ing revenue growth opportunities, ad-
gress” during the three months ending
vancing our comprehensive integration
June 30 with the firm posting growth
efforts and implementing our planned
across key financials.
cost savings,” Isaacs said.
Overall the companies net loss in-
“Our focus on accelerating revenue
creased from minus $72.4 million last
growth is balanced with our commit-
year to $102.2 million in the current
ment to deliver the realisation of an-
year.
ticipated cost savings that will drive
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AUGUST 2015
Ritz Casino wins court judgement against billionaire The court case against a billionaire
tthen requested a further £5m-worth of
Swiss businessman and the Ritz casino
credit, which was refused by the casino.
has found on the side of the casino and ordered Safa Abdulla Al-Geabury who
Al-Geabury, the judgment said, is a
has a home in Chelsea among others to
“substantial international businessman
pay the casino the £2 million he lost on
involved in the financial world” who
the 19th February 2014.
said that his “capital assets are in excess of US$1 billion”.
Safa Abdulla Al-Geabury admitted going on a “frantic gambling spree” that
The judge did not spipulate when the
was “frenzied and uncontrolled” at the
payment to the Ritz should be made,
Ritz Club casino in Mayfair in February
this will be determinned at a later hear-
2014, after watching an Arsenal foot-
ing.
ball match, Al-Geabury went to the casino and signed a cheque in exchange for roulette chips, but it was eventually returned unpaid. Sometime later he
Macau July revenues down but improving Macau’s gambling revenues for July saw
There are some new resorts opening
a 34.5% fall to $2.3 billion however an-
this year that will draw tourists and
alysts predict that the continuing fall is
gambling revenue back to Macau, with
easing now amidst the easing of visa re-
Galaxy opening two new gambling re-
strictions for Chinese citizens who want
sorts in May and Melco Crown Enter-
to enter Macau.
tainment is expected to announce an opening date for its $3.2 billion Studio
The release of the July figures by the
City resort this week.
Macau’s Gaming Inspection and Coordination Bureau is where most analysts expected the revenues to be since the decline started in June 2014 following the anti-corruption crack down by the mainland Chinese president.
So far this year gross gaming revenue has fallen 36.7% and is predicted to fall by 30% for the whole of 2015. That estimate would be in line with expectations that the next half year would recover so on the revenues lost.
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AUGUST 2015
Galaxy Entertainment buy into Monaco SBM
Galaxy Entertainment the Macau based
5-percent stake from the state of Mona-
casino operator has bought a 5% stake
co, a principality on the Mediterranean
in Monaco casino company Société des
coast of southern Europe that is bor-
Bains de Mer (SBM) for EUR40 Million.
dered by France. “Given the scale and size of Galaxy Entertainment, this is a
“This is a minority strategic investment
relatively small investment,” the Macau-
into SBM shares and we are not seek-
based gaming operator said.
ing to purchase more shares,” Galaxy Entertainment said in a statement. “This
SBM said in on the purchase: “Following
is the first step in an exciting partner-
this operation, the SBM board of direc-
ship with SBM, and we look forward to
tors will be strengthened by two new
working closely with SBM for our mutual
board members to be proposed at the
benefit. We will be able to share more
shareholders’ meeting. They will pro-
details on the potential scope for future
vide enhanced knowledge and exper-
collaboration in due course.”
tise in the gaming and luxury industries, which should prove extremely benefi-
The announcement marks the first time
cial to the company’s future.”
that Galaxy has ventured out of the world’s largest gambling hub in its ca-
Gambling observers believe that the
sino business.
deal would help increase VIP traffic from both locations and offer their high
Galaxy Entertainment acquired the
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roller customers more experiences.Cae-
AUGUST 2015
19
Caesars shares plunge on bankruptcy ruling sars Entertainment could be now almost
The operating unit filed for Chapter 11
certain to follow its operating unit into
bankruptcy this year and the hedge
bankruptcy following a ruling by a fed-
funds allege Caesars guaranteed its
eral judge that creditor’s lawsuits will
debts.
not be stayed while the company works out its overall $18 billion debt pile.
The casino giant has said judgments from those lawsuits could be issued in
Creditors who had filed lawsuits asking
the coming weeks which could force it
for $11 billion in secured debts are now
into bankruptcy alongside its operating
free to continue their class action some-
unit.
thing Caesars said would then certainly puts its business unit into bankruptcy.
Creditors, including affiliates of Centerbridge Partners, Oaktree Capital Man-
News of the ruling has seen the compa-
agement and Appaloosa Management,
nies share value free fall by some 50%
have argued their cases in New York and
before rallying late on to be down 34%
Delaware are necessary to determine if
at just $5.31 a share.
the operating unit’s debts are guaranteed by Caesars.
Echo go after chinese high rollers for Brisbane Echo Entertainment who won the battle
“Chow Tai Fook has very deep relation-
of Brisbane against casino operator rival
ships with Macau-based junkets and
Crown Resorts for the right to build a ca-
they have a special incentive for bring-
sino integrated resort has revealed their
ing additional volume of VIP business to
secret weapon to ensure the resort will
Australia that we don’t currently see,”
be a huge success. Their 25% investor
CEO of Echo Entertainment Matt Bekier
Hong Kong conglomerate Chow Tai Fook
said.
is tasked with bringing in to Brisbane high roller Chinese gamblers.
The Brisbane riverfront complex, scheduled to open in 2022, would make that
It has long been the major source of
city an essential side-trip for Chinese
income for Crown Resorts to bring in
gamblers arriving in Sydney and Mel-
the major Chinese gamblers with the
bourne, not an outright destination, he
company but Echo are catching up with
continued.
the companies Sydney casino getting around 30% of its total revenue from Chinese gamblers. Overall Chinese tourism in Australia is worth just over $4 billion a year and is growing.
INFINITY GAMING
THE 9TH INTERNATIONAL
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GAMING NEWS
AUGUST 2015
Microgaming release Bridesmaid slot Blockbuster brand. Simultaneous release on desktop and mobile.
R
eleased in 2011, Bridesmaids was a storming success, becoming the highest-grossing R-rated female comedy of all time and earning nearly $300 million worldwide. The movie, featuring an all-star ensemble, not only broke box office records, but it also scored big with critics, receiving more than 80 industry award nominations. Microgaming’s Bridesmaids online slot embraces all elements of what made the film such a triumph. The female-led cast take centre stage throughout; Lillian, Annie, Helen, Megan, Rita, and Becca are all high symbols in the game. References to Annie’s iconic cupcake, good-humoured voiceovers and rib-tickling movie clips provide non-stop entertainment to players. The 5×4 reel, 40 line game is also jam-packed with winning opportunities, including stacked wilds and scatters. Three or more cupcake scatters trigger the wheel bonus, with 15 prizes up for grabs. Spinning the wheel will determine the prize, which could be a cash amount, bonus feature or jackpot win. The bonus features include flying high free spins, friendship free spins, boutique bonus,
and magic moments, all of which relate to standout moments from the film. Bridesmaids online slot is live with Microgaming and Quickfire operators NOW!
Chris Downy joins Star The South Wales Liberal Party President and former NSW Minister for sport and racing Chris Downy has resigned from his post and will be taking up a senior executive role at the Star casino resort run by Echo Entertainment. His role will be of general manager, corporate affairs, which involves lobbying the NSW Coalition government. However the position will not start for several months while Mr Downy learns the business from the inside. Mr Downy is well known in the gambling sector in Australia having worked as chief executive of the Australasian Casino Association and most recently the Australian Wagering Council, which represents online bookmakers.
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AUGUST 2015
Improving Customer Experience
A Must for Mobile Marketers in 2015
Paul Swaddle, CEO, Pocket App
According to analysts, Gartner, 89% of companies expect to compete mostly on the basis of customer experience by 2016, compared with only 36% five years ago. This incredible jump indicates just how
ingrained in consumers’ daily routines,
overcome. In fact, in order to drive cus-
exponentially the importance of cus-
the expectation for complete and unin-
tomer satisfaction and impact business
tomer experience has grown and high-
terrupted satisfaction has never been
results, each touchpoint a customer has
lights how making customer experience
greater
with an organisation must be relevant
count is absolutely critical to all businesses cross any vertical market
and effortless. Customer experience can make or break a brand, with consumers now elevated
So, what should marketers be doing in
The reason for this is quite simple,
to a position where they are empow-
order to create a successful customer
brands no longer have a choice. In this
ered to either evangelise or antagonise
experience and where should they be
current, highly connected world, nearly
a brand via the proliferation of Social
concentrating their efforts?
every organisation is working toward
Media avenues available to them. A
establishing a meaningful customer ex-
bad experience can spread like wild-
A recent Salesforce mobile behav-
perience across all channels, and with
fire through social creating a number
iour report showed that customers are
mobile and social now so intrinsically
of negative hurdles for marketers to
spending 3.3 hours per day on their
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AUGUST 2015
Marketers should be taking advantage of this trend by providing an ever-increasing number of locationbased offers.
individual’s behaviour and preference.
with their customers and brands should leverage the way in which mobile pro-
However, it is also important to ensure
vides unparalleled opportunities to
that smartphone and tablet marketing
learn more about customers by analys-
strategies are given their respected in-
ing their interactions. Marketers must
smartphones and 85% said mobile de-
dividuality. It is important to discover
understand their customers and who
vices are a central part of everyday life,
the way in which people interact with
they are across all of the multi-touch
so as the mobile becomes ever more
these devices to determine the best
experiences that people have. Person-
central to our lifestyles and shapes the
marketing methods to employ.
alisation allows marketers to create
way in which we research and interact
meaningful connections that truly reso-
with brands, a mobile-first mindset is
Typically, tablet owners spend an hour
nate with customers.
essential for marketers planning their
or more on their tablets per day. They
strategy. Mobile is inevitably your cus-
use their tablets at home and research
Lastly, be consistent. Consumers need
tomer’s first interaction with your brand
shows that the average purchase on a
to know what to expect, and a consist-
and is increasingly becoming their pre-
tablet is much higher than purchases
ent brand experience will evoke a sense
ferred medium for content consumption
online or via mobile. Tablets also pro-
of comfort, familiarity and loyalty. It’s
and communication, so failing to devel-
vide size and interactivity, and their
important, however, not to confuse
op marketing strategies and a seamless
larger touch screens offer more real es-
brand consistency with uniformity. Al-
customer experience with a mobile-first
tate for brands to utilise than on smart-
though messaging and tone should re-
mindset is no longer an option.
phone screens, immediately presenting
main the same, always remain strategic
great marketing opportunities.
to the channel that you are working in.
a consumers ‘extra limb’ and really has
However, whether on smartphone or
Ultimately, the key is to capture cus-
been a game changer when it comes to
tablet, consumers want a consistent ex-
tomer attention by reflecting what
reaching audiences anywhere and at
perience that matches the device they
customers want to do, how they want
any time. Marketers should be taking
are on at the time and so responsive
to interact with your brand and by tap-
advantage of this trend by providing
design is critical to ensure your website
ping into their likely behaviour, based
an ever-increasing number of location-
recognises the device and delivers the
on what you already know about them.
based offers. Applications should be
optimised content to match it.
But remember, one size won’t fit all, so
The smartphone is often referred to as
created that take into account weather,
know your target audience and what is
time of day, and personalised interac-
Another key consideration, which I al-
best suited to their experience and tai-
tion to make purchase decisions easy
luded to earlier, is personalisation. Data
lor a personalised customer experience
and instinctive, because they match an
should drive the way marketers interact
around them.
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24
AUGUST 2015
Interview with Andrew Jarrett Director – Digital Jersey
Jersey has opened up for business to the digital industry and wants to attract the online gambling sector, we speak to Andrew Jarrett on what the isle has to offer.
Andrew thank you for talking to us today, can you firstly tell our readers what is Digital Jersey and how long has it been going? Digital Jersey (DJ) was set up in June
My role is business development, that
global headquarters and /or their oper-
translates to helping on island busi-
ations here. The advantages are many
nesses grow and export whilst looking
but typically differ depending on the
for new business to bring to the island
type of business activity or in the case
whilst working to make the island more
of eGaming where they are based, their
attractive for the sector.
market focus. We assist with connec-
2012, Digital Jersey represents a community of stakeholders including in-
tions to the right people within the in-
Which sectors are you focusing on?
dustry, government, students and the
dustry locally who can help with all the services they require.
residents of the island. The purpose of
Fintech, eGaming, eHealth, and Data
Digital Jersey is to act as an accelerator
analytics as we see these as areas that
for the digital economy and as an ac-
could be pivotal for Jersey. In terms of
celerator for a digitally enabled society.
which sectors locally we offer help to
The digital economy includes the digi-
it is any company or start up. We work
tal sector itself and the application of
closely with the excellent teams at Jer-
technology across all sectors. There are
sey business and Locate Jersey.
three main work streams, Skills & Edu-
The majority of our readers are involved in the gambling industry either online or land based that are looking or are in the online gambling sphere, what advantages are there is coming to Jersey as opposed another jurisdiction?
cation, Ecosystem and Business development.
What are the services you offer businesses setting up in Jersey?
What is your role in Digital Jersey?
That’s an easy one •B2C licence – highly competitive costs
We help businesses understand the advantages of establishing either their
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•B2B licence – ability to supply all mar-
AUGUST 2015
ANDREW JARRETT The industry legend that is President & CEO of Scientific Games Corporation
kets
and tech services
GREF working group on technical issues, an active participant in the IAGR
•No hidden costs
•Depth of skill and resource on the is-
e-gaming working group and is also a
land
member of the International Masters of
•Free Disaster Recovery License
Gaming Law. He is also a member of the
•0% eGaming Duty
On the website it says you have an independent Gambling Commission, can you explain this further, is it totally separate from the UK Gambling Commission?
•0% Corporation Tax
Yes, the commission is independent,
•Independent Gambling Commission – excellent regulatory framework
the Chairman is the ex Chief Inspector •Excellent internet connectivity
of gaming for Great Britain, the CEO is
Jersey Police Authority, the independent oversight body for the States of Jersey Police.
Does the island offer the workforce along with skills needed for an online gambling operator or would they have to re-locate their own workforce?
chairman of the Gaming Regulators Eu•World-class regulatory, banking, legal
ropean Forum (GREF), co-chair of the
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25
26
AUGUST 2015
Andrew Jarrett Interview
Typically there are two scenarios, com-
to the UK and Europe and a reputation
A combination of both actually, we are
panies that work in conjunction with
for world class financial services. Jersey
seeing interest for established players
the local finance industry to provide
is the ideal location for companies look-
who are looking for a home for their
directors and officers of the company
ing for growth, M&A and listings. Qual-
next venture.
and those that set up completely. In the
ity of life is also high on the attractive-
latter case they will normally bring key
ness factor.
staff into the island and complement that with locally hired staff. The skills base depends on the company and the sector they are in and how specailsed the positions are, however, generally Jersey has a strong technical and creative workforce.
How have you been accepted by the online gambling industry so far?
Do you think that maybe Jersey has come a little too late to the egaming jurisdiction world with already a few well established jurisdictions having been around now for some time?
Andrew you live in Jersey what is it like living there compared to say London? The quality of life is a key ingredient, the island is 10 miles by 6 surrounded by award winning beaches, Michelin starred restaurants, some of the best seafood in the world as well as great local bars and cafés, we even have our own brewery. It’s the sunniest place
Absolutely not ! The licensing applica-
in Great Britain and equally great for
tions prove that. Jersey is late because
sporting types we have excellent facili-
We have had a great reaction since
we did not get on the white list before
ties. We host hosted the Island Games,
launching at ICE, there have companies
the UK closed it (a long story) so we
3000 athletes from across the globe, it
setting up and several are going through
were effectively cut out, the sector is
is the biggest even after the common-
the licensing process. The future looks
dynamic and mobile, it will move to the
wealth games with twenty four islands
very promising.
locations that offer the most value add
represented. Jersey topped the med-
and welcoming environments.
als table beating amongst others the
n general what does Jersey have to offer businesses locating to the island?
It’s a combination of excellent licensing framework, coupled with proximity
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eGaming islands of Guernsey, Alderney,
How do you see the future of Jersey as a new player in this field, will it be to grow and encourage new start-up businesses or to encourage established companies to re-locate?
Isle of Man and Gibraltar, note Malta did not take part.
AUGUST 2015
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27
GAMING NEWS
AUGUST 2015
Microgaming announced as latest IGA9 Sponsor
C
lever Duck Media has announced Microgaming a pioneer in virtual and wearable gaming as the latest Sponsor for the 9th International Gaming Awards Ceremony in support of charity. The International Gaming Awards will take place in London on the 1st February 2016. And as always we will welcome the most successful operators from around the globe, outstanding leaders and charity supporters. Nominations are Free to enter event, however, we ask all participants to make a donation to one of our supported charities. Please donate generously. Colin Thompson, organizer of IGA, commented: “We are delighted to welcome Microgaming as a Gold Sponsor to the prestigious International Gaming Awards (IGA). The IGA recognizes the very best in the global gaming technology and innovation and we are proud to welcome one of the pioneering brands in gaming software developing, well known for great player protection to support IGA and its charitable cause.�
IGA9 Nominations open The 9th Annual International Gaming Awards (IGA) have announced that the categories and nominations for the 1st February 2016 event are now open and as always free to enter. Celebrating the very best the global gaming industry has to offer over the last twelve months hosts and organisers Clever Duck Media have added some new categories to the list. To find out more about the IGA and how to enter go to http://www.gaming-awards.com
INFINITY GAMING
29
30
AUGUST 2015
Stay a Happy App Gamer By Liz Karter To find out more about Liz Karter and her work visit these links: www.levelgroundtherapy.uk - www.lizkarter.com & Liz Karters Books
If you think you maybe spend more than the average time gaming, for a week pay conscious attention to when you feel drawn to your App game and what you may find of interest is what triggers you to subconsciously...... How many times a day would you say
diction, which is of course loss chasing,
card bill? Focus on the screen and Crush
you find yourself picking up your phone
and in the beginning it is a very simi-
that Candy - at least you get the satis-
to play Candy Crush, Cookie Jam or
lar psychology that drives addiction to
faction of feeling you are in control of,
your App game of choice? I imagine
online gambling or slots and addiction
and have achieved, something.
you might surprise yourself were you
to gaming. It is interesting to note that
to keep track of just how many hours
52% of the gamers from the UK study
At the heart of the addictive draw of APP
the minutes here and there add up to.
are women, who when addicted to gam-
gaming is the sense of being able to
A major UK study by the revealed that
bling prefer the forms of gambling I
control ones thoughts and feelings via
the average UK citizen spends 6 hours
have just listed, which are very similar
an App. On our phones and tablets we
per week gaming (Internet Advertising
in appearance to App games.
now have built in self- soothing mecha-
Bureau, 2014) The initial hook is that sense of total If you think you maybe spend more than
absorption, focus on nothing else oth-
the average time gaming, for a week pay
er than what we are doing in that mo-
conscious attention to when you feel
ment helping us to switch off stressful
drawn to your App game and what you
thoughts and feelings and go off into
may find of interest is what triggers you
a digital world that feels easier than
to subconsciously reach for your phone.
our real world. On the train home sur-
I would guess, like so many, it might be
rounded by grey skies and even greyer
times when you feel bored such as on
looking fellow commuters, how much
the commute home. But you might be
more appealing are the tropical colours
surprised too, that you find yourself
of Candy Crush! Stressed after the of-
playing after that stressful meeting, or
fice meeting or the argument at home;
when things are tense at home, or when
pick up your phone access your App
you know you really should be resolving
and away you go, off into another world
that financial problem which is worrying
of images and sounds reminiscent of
you.
childhood when life was a lot easier. You can absent yourself emotionally
When we are looking at what drives ad-
and mentally but remain physically pre-
diction to App games, we can look to
sent in the office or your sitting room –
patterns of gambling addiction. Remove
nobody guesses that mentally you have
the end consequence of gambling ad-
gone. And concerned about that credit
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One of my main concerns about the overuse of APP games is that in young people. Adolescence should be a time of learning to deal with life problems, developing social skills and learning how to make sense of and manage our emotions.
AUGUST 2015
Reach another level on Angry Birds and
not enough time learning the social and
results for those suffering the effects of
you reach a high that offers you respite
relational skills which are essential to
trauma (Medical Research Council, Cam-
from a low mood. Be part of a group of
happiness. Always avoiding an uncom-
bridge) which is similar to my findings
people playing FarmVille and you have
fortable emotion such as anger by turn-
of why many women I treat are attracted
a feeling of belonging without any of
ing to an APP means never learning how
to online gambling or playing slots. Ad-
the hassle of dealing with the demands
to manage anger without an APP, and so
dictive cycles start when we turn to App
of real world friends, but sadly, too,
we can see how an addictive cycle can
games as a way of avoiding problems
much less of the support that comes
start.
instead of facing them. If we do not sort
with good real world friendships.
out problems at work and at home and It is easy to imagine that getting addict-
find a way to manage that credit card
One of my main concerns about the
ed to gaming is the ‘soft option’ com-
debt, then our real lives stop working.
overuse of APP games is that in young
pared to addiction to gambling and un-
The real world gets worse, the more
people. Adolescence should be a time
doubtedly the financial losses incurred
we want to live in the game, so the real
of learning to deal with life problems,
by gambling addiction are devastating.
world gets worse, so the more we want
developing social skills and learning
But the loss of time, social skills and the
to live in the game...
how to make sense of and manage our
ability to manage emotion are common
emotions. We all remember from painful
to both gambling and gaming addic-
The way to avoid the addictive cycle is
experience how difficult a time this can
tion. Those I treat often reflect on how
to make sure that there is a good bal-
be and how tempting it can be to avoid
no matter how much money is lost, the
ance by working at keeping your real
intimate conversations or uncomfort-
loss of time invested in careers and with
world okay and so keeping the digital
able feelings. Nowadays, young people
those they love is their biggest regret.
world just for play. Never get so ab-
easily miss out on learning from tricky
sorbed by the magic of reaching level
social situations, or tuning in to their
It is good and healthy to have escap-
59 on Bubble Witch Saga that you ne-
feelings - using avoidance by APP. In
isms, we all have to take the edge off
glect to take your real life of work, play
the 2014 study average 8-15 year olds
now and then and APP gaming can be
and relationships to the next level.
spend 20 hours gaming per week. Too
great for that. A recent scientific study
long spent in the digital world means
revealed that playing Tetris has positive
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31
AUGUST 2015
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INFINITY GAMING
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GAMING NEWS
AUGUST 2015
Malta gaming regulator under huge pressure following mafia scandal
F
ollowing the suspension now of nine licenses over the possible connection of those sites to the mafia in the recent raids in Italy questions are being asked about the future of Malta as a credible licensing authority. Over the years Malta became one of the leading destinations for online gambling companies to license their businesses, with leading companies such as PokerStars and Unibet being among the names licensed there, but many now are asking why the Maltese Gaming Authority (MGA) did not know or at least suspect criminal activity was going on with their licensees. Last week’s raid by Italian police targeting the notorious Mafia gang the ’Ndrangheta’ with over $2.2 billion in cash and assets seized in what is believed to be a money laundering syndicate. With two believed connections to the ’Ndrangheta’ being Vincenzo Giuliano, director of Fenplay Ltd, and Mario Gennaro, of the Uniq Group both whose licenses are now suspended why did the MGA not suspect any wrong doing before.
that offered services to the US market and then ran off with customers funds running into the millions. So why isn’t the MGA looking more closely at their licensees when doing due diligence on their applications for a license? With the Times of Malta naming David Gonzi, son of Malta’s former Prime Minister being formally included in the investigation by the Italian police, the embarrassment for Malta is growing, however Gonzi is denying any wrong doing at this time. Gonzi is named as a director of a company called GVM Holdings which acted as a fiduciary for the Uniq Group and with Mario Gennaro the Director of Uniq Group already having been said to have connections to ‘Ndrangheta in a court case last year in Palermo, why was not this picked up by the Maltese gaming authority? Many observers believe that more online gambling companies maybe in Malta and elsewhere will be named in this scandal as it unfolds, but the big question is can Malta as a licensing authority survive as a credible authority once the full investigation is concluded?
Indeed many point to the 2012 scandal over Everleaf a Maltese regulated and licensed online gambling firm
INFINITY GAMING
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33
GAMING NEWS
AUGUST 2015
Malta suspend online gaming sites following mafia connections
F
ollowing the iGamingpost
on the infamous ‘Ndrangheta Mafia,
report on Italian police raiding
which controls much of Europe’s co-
The ‘Ndrangheta is considered the
betting offices and online web
caine trade is run by Mario Gennaro
most powerful crime syndicate
sites the Maltese Gaming Authority
who was propelled to a leading boss
in Italy, having surpassed Sicily’s
have suspended more online gam-
of the mafia crime gang following the
Cosa Nostra and the Naples-based
ing licenses including Fenplay, Soft
huge success of the gambling empire
Camorra, because to the money it
Casino Ltd and Soft Bet Ltd. All their
which was used to launder money
has made as the principal importer
operations have now been suspend-
made from cocaine smuggling.
and wholesaler of cocaine produced
ed and those companies cannot offer
in Latin America were laundered
any online services to existing or new
Arrest warrants were issued for those
through the gambling websites and
customers until a full investigation
suspected of running the gambling
betting shops. There has been in
has concluded.
empire along with 11 of the gambling
total nine gaming sites that have had
sites run out of in Austria, Malta,
their licenses suspended since the
Romania and Spain.
crackdown last week.
The raids last week by Italian police
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35
36
AUGUST 2015
One Spin too far… Is the Online Slot Industry becoming over-saturated? By David Newstead
Space Invaders. Pac-Man. Asteroids.
the rapidly growing online slot ma-
ber of companies who equally appear
Anyone over the age of 35 will remem-
chine. In the first instance this market
to simply view slot machines as a vehi-
ber these games with a tint of rose in
grew almost exponentially as players
cle for generating cash.
their eyes. Look on any computer game
could suddenly access the machines in-
nostalgia website and you’ll find stories
stantly recognisable from both the Las
In many senses the gaming devices are
about how demand for these machines
Vegas parlours and their local clubs and
a license to print money with guaran-
forced the US treasury to mint more
betting shops. However, as nearly four-
teed returns that can only be found in
coins. They sparked such a wild-fire of
fifths of all gambling traffic is now des-
the investment industry with a good
delight in their audience it wasn’t long
tined for these machines, is the genre in
hedge fund manager.
before companies such as Atari and Od-
danger of reaching a similar saturation
yssey began producing consoles to de-
and implosion as the computer games
liver the games of the arcades straight
industry?
into the homes of players. Amongst the main drivers for this marAt first this was a notable success. De-
ket slot saturation is the practice of
velopers quickly found that they could
re-skinning popular games. It is signifi-
produce their own in-house titles that
cantly more cost-effective for develop-
rivalled the sales of popular arcade con-
ment houses to simply create a new
versions. Soon the market was saturated
theme and front end for an older, pre-
with hundreds of high cost games that
viously successful slot, whilst retaining
failed to deliver the quality of the first
the old mathematical model. Certain
releases. The whole computer game
houses have taken this practice to a
market inevitably collapsed under the
fine art essentially releasing the same
weight of mediocrity and took years to
game repeatedly, taking up front page
revitalise, emptying the arcades and al-
casino space that might otherwise fea-
legedly filling Central American waste
ture more exciting and innovative titles.
sites with sub-standard game cartridges.
Whilst a number of developers on the online casino block are clearly keen to
The question we’d like to ask today is
push innovation, such as Net Entertain-
whether a parallel can be drawn with
ment and Thunderkick, there are a num-
INFINITY GAMING
Amongst the main drivers for this market slot saturation is the practice of re-skinning popular games. It is significantly more cost-effective for development houses to simply create a new theme and front end for an older, previously successful slot.
AUGUST 2015
As slot machines are quite simple to
ware houses and mathematical models
than the titles that are most popular or
produce, with the complexity resting
are already a success with players, what
are likely to have the worst house edge.
on the shoulders of a good statistician
incentives are there to feature and pro-
to create the watertight mathematical
mote the more interesting and exciting
Recommendation sites also suffer from
model that controls the pay-outs and
titles?
the same difficulties with their advertis-
prizes. Once a company has a good slot
ing and casino banners, which can turn
engine it can be tweaked to offer differ-
It may well be the case that the online
today’s web savvy audience off imme-
ent bonuses, free spin rounds, second
casino industry is simply too reactive.
diately. As soon as a visitor feels and
screen gimmicks and other tricks to
Predicting which games will be a hit is
thinks a site is marketing to them, this
churn out endless machines that differ
a massively difficult ask. Instead casinos
can drastically reduce the site’s author-
only in detail and their artwork.
tend to promote the machines that get
ity. In turn this decreases the chance of
the most plays, which are often those
the visitor taking on board any of the
Whilst there are companies out there
that are already featured on their front
actual review content.
who seem to be able to push the genre
pages. The only exception to this rule
with new reel mechanisms, level sys-
is the new titles that often tie-in with
The answer is clear. With proper slot
tems and even technology that em-
existing media spectacles such as the
recommendation sites featuring true
braces new mediums like smart phones,
recent Game of Thrones from Micro-
and impartial review content it should
these titles are becoming buried in the
gaming. This is rapidly becoming a cir-
be possible for slots players to start to
deluge. It is this continual pump, dump
cular scenario, with the same old titles
navigate the tricky waters of these me-
and turn-over of titles that leaves the
going around and around the washing
diocrity infested waters. The industry
most innovative machines behind. In
machine of promotion.
needs to stand up and start self-regu-
the last three years there has been a
lating and praising invention, novelty
number of truly expansive releases
In every other area of the web content
and genuine originality or it is literally
such as Queen of Thrones from Leander,
curation is taking over. The internet au-
taking a gamble on whether or not this
which have hardly received the cover-
dience is keen to listen to experts rec-
craze will simply run out of funds and
age they deserve.
ommend the top videos, songs and info-
go bust.
graphics. Could such an approach save There is no question that the motive
the world of slots? Ultimately the prob-
behind such saturation is the casino’s
lem is that consumers do not trust op-
bottom line. When proven brands, soft-
erators to push anything on them other
INFINITY GAMING
37
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GAMING NEWS
AUGUST 2015
GVC needs to up bid again to win bwin.party battle says Ader
B
win.party will almost certainly
attention,” Ader told
reject the latest offer from
Reuters.
GVC Holdings should it not
reach 135p to 140p per share. That is
He added that the onus
much higher than the reported new
was on Bwin’s board to
offer of 122.5p per share offered this
push GVC higher and
week in an attempt to wrestle the
invite 888 to reconsider
struggling online gambling firm from
its own offer.
888 Holdings who has had an offer accepted of 104.09p.
It seems that the battle for bwin.party is far
American activist investor Jason
from over and Ader is
Ader, whose SpringOwl firm is among
enjoying the bidding
Bwin’s five biggest shareholders, said
war that looks like
GVC’s new offer was still not enough
taking place over the
and he would still prefer 888 if there
beleaguered online
was no further improvement in the
gambling company. The
bidding.
question is how much does GVC value bwin.
“If this was a 135p-140p price (from
party and would 888
GVC) that might be enough for the
come back in with a
Bwin shareholders to get comfortable
counter offer should
with all the uncertainties. The 122p
GVC reach the level
price is probably not enough, but
believed needed to be
it’s enough to get the Bwin board’s
accepted?
Iowa Gambling Commission looks at online gambling
C
hairman of the
tions on how customers
casinos in the state
Iowa Racing and
can bet on horseracing,
are seeing declining
Gaming Commis-
online poker and casino
revenues and is really
sion Jeff Lamberti says
games. Jeff Lamberti
struggling.
that his commission has
said they wanted to see
been listening to com-
what this company had
It seems that the Iowa
panies that offer online
to offer as the industry
Racing & Gambling Com-
gambling on smart-
continues to evolve.
mission are wasting no
phones and tablets.
Lamberti says the move
time in preparing them-
to more on-line gam-
selves for any future
The un-named company
bling depends what
positive vote in online
has been presenting the
lawmakers want to do,
gambling in the state.
commission with op-
currently land based
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39
GAMING NEWS
AUGUST 2015
Crazy Lawsuit: Man says he was struck by runaway roulette ball
A
man is suing Baltimore-based Cordish Companies for injuries he says he received after being struck by a roulette ball at Hanover’s Maryland Live casino. The Capital of Annapolis reports that Leander Stocks filed the lawsuit in U.S. District Court in Washington last November. According to online court records, on Friday, U.S. District Judge Amit P. Mehta denied a motion by Cordish Companies to dismiss the lawsuit. According to the lawsuit, Stocks was struck just above his left eye by a roulette ball in December 2013 but waited over 18 months until he decided to sue the casino. Stocks says an employee squeezed eye drops into Stocks’ eye without his consent, causing him to become disoriented and hit his head against a wood door, knocking him unconscious. Stocks is suing the casino on two counts of negligence and battery, seeking $150,000 on each count.
NJ online operators suffer DDOS attack & ransom The New Jersey Gaming Enforcement Division said that four of its online casino operators were attacked by a cyber-hacker recently demanding a ransom of Bitcoins or would continue with the distributed denial of service (DDOS) attack. David Rebuck, director of the New Jersey Gaming Enforcement Division, said last weeks attack was a so-called distributed denial of service attack, in which websites were flooded with information and requests for access that rendered them inoperative. The websites attacked were not named and no ransom was paid to the hacker with no further attacks occurring said Mr Rebuck.
666Bet receives compulsory winding up order 666Bet the rising star of 2014 with celebrity figures on their TV adverts has been wound up following the compulsory order of its holding company Metro Play which itself has been forced to close. The betting firm which was launched in April of 2014 to big fanfare had its operating license in the UK suspended following the arrest of its Director Paul Bell earlier this year in connection to an investigation of money laundering and Fraud, named “Operation Bannock.” In a statement the UK Gambling Commission (UKGC) said that Metro Play Limited operator license had lapsed and that it could no longer provide facilities as an online gambling operator. The commission stated that it “does not know whether this development will have any impact on the payment of outstanding balances to customers.” The UKGC suspended the companies UK license following numerous complaints from customers on withdrawing their funds along with the arrest of Paul Bell.
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GAMING APP NEWS
AUGUST 2015
Fight over online gambling PoC tax referred to Europe
O
nline gambling firms fighting the UK Governments Point of Consumption Tax (PoC) has had their High Court case now referred to the Luxembourg-based Court of Justice of the European Union (CJEU) saying it should decide on the ruling. In December 2014 the PoC tax was installed making all operators offering their services to UK residents pay a 15% duty on all profits made, this say leading betting companies such as William Hill and Ladbrokes who have set up operations in Gibraltar where a low or zero tax is paid say the UK government is being unfair. The Gibraltar Betting and Gaming Association (GBCA) which represents online gambling firms on the island took up the fight on many of their operator members. How the judgment will come out in Europe is unclear and some observers within the online gambling sector say it could very much go in favour of the UK Government or indeed find it unlawful. A spokesman for HMRC said: “The judgment has not found against any aspects of the UK gambling tax regime, and we remain confident that the place of con
sumption reform for the gambling tax regime is lawful. We are considering the judgment in full before deciding how to respond.” With the current woes in Europe over Greece a judgment may take until early in the New Year and even then either side can appeal the decision.
Alabama see gambling proposals aid budget woes Another US state is toying with the idea of legalising or at least considering to talk about gambling as a remedy for the black hole they have in their state budget. Alabama which currently has no casinos or even a state lottery but Senate President Del Marsh wants it put to state voters to decide on allowing gambling in the state with some 4 million residents. Governor Robert Bentley called an emergency meeting of senators to try and sort out the $200 million deficit in the state’s budget but ensured that any talk of gambling was kicked in to touch by dis-allowing the subject when asking for new ideas on raising extra funds.
out the $200 million problem in the budget, however Marsh introduced new legislation proposals to legalise lottery and up to 4 casinos in the state. “I think if you check the temperature of the public, they are ready to vote on the issue one way or the other,” Marsh said. Marsh said he is not looking at the bill as a solution to the budget shortfall, but said the state needs to have the conversation about gambling. Support for any proposed bill will be difficult in Alabama, however if Marsh manages to put the vote to state residents he may very well have a much better chance that through the state senate.
But the opening day of the special session to work
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AUGUST 2015
4 Steps to..... Value-Added Differentiation In the series ‘Strategic Responses to
critical factor in their industry, adopting
ed services and innovative features. But
Commoditization’, insights from one-
multiple strategic responses to com-
what does ‘Value-Added Differentiation’
to-one interviews with business leaders
moditization based on their product
mean and what steps can be taken to
from some of the largest, best known
and marketing strategy and overall busi-
transform your business in this way?
and most influential high-tech busi-
ness strategy.
nesses in the world, were analysed and compared with the latest academic
Innovation & Creativity, reviewed in
thinking and management theory to
‘Can Innovation Be Managed?’, were
create a set of practical recommenda-
most commonly seen as the antidote to
tions all business leaders and compa-
commoditization, either through acqui-
nies facing the threat of commoditiza-
sition or development of discontinuous
tion should consider.
technology having the effect of reset-
Defining Value-Added Differentiation In the 1980s, Michael Porter presented
ting the market requirements. ValueBeginning with the article ‘Is Commod-
added differentiation, the focus of this
itization a Threat to Your Business?’,
article, was a close second with most
business leaders from every company
companies seeking to build a broader
interviewed including; Cisco, Dell, HP,
value proposition and a deeper rela-
IBM, Microsoft, Verizon and Vodafone,
tionship with the customer, bundling
increasingly saw commoditization as a
commoditized products with value-add-
Differentiation however can be difficult and expensive to implement and will only keep you ahead of the pack temporarily.
INFINITY GAMING
JOHN EDMUNDS Industry veteran and gaming consultant John Edmunds offers some tips on success
AUGUST 2015
three generic strategies for businesses
market, such as; (1) Intellectual Property
perceived to be different from the main-
to achieve and maintain competitive
(2) Unique Technical Expertise (3) Inno-
stream.
advantage; ‘Cost leadership’; ‘Differ-
vative Processes.
entiation’ or ‘Market Segmentation (or
Points of differentiation can be tangi-
Focus).’ Holmes (2008) described this in
Differentiation however can be difficult
ble and intangible; tangible in that the
more detail for a mature market, where
and expensive to implement and, ac-
customer can see it, use it or measure
the industry’s mode of competition
cording to research by D’Aveni (2010)
it; and intangible in that the customer
tends to move away from the underly-
and Weil & Stoughton (2003), will only
feels it, perceives it or believes it. Either
ing, commoditized product and towards
keep you ahead of the pack temporar-
way, you must be able to measure the
alternative methods of building value.
ily. For a differentiation strategy to be
attributes used to differentiate and how
Porter’s alternative strategy of ‘Differ-
successful, the value proposition must
they are advancing, protecting or main-
entiation’ is aimed at the broad market
not only be different from that of one
taining the brand.
that involves the creation of a product
or more of its competitors, but the
or services that is perceived throughout
difference(s) must be known and valued
So what are the steps to value-based
its industry as unique. The company or
by the customer to avoid a product or
differentiation?
business unit may then charge a premi-
brand eventually becoming a commod-
um for its product or maintain pricing in
ity (Schwirn (2002) and Dumlupinar
a deteriorating market and reverse the
(2007)). Johnston (2004) believed that
slide towards commoditization. A dif-
the enhanced or differentiated attrib-
To create a competitive advantage in
ferentiation strategy therefore is appro-
utes must be compelling enough to
the market place, Treacy and Wiersema
priate where the target market is com-
make customers feel they ‘have to have
(1993) recommend excelling in one of
petitive or saturated, customers have
it’ and that the differentiation must also
three dimensions of differentiation and
very specific needs which are possibly
be within a reasonable price range of
value: Operational Excellence, Product
under-served, and the firm has unique
the commodity so as not to be out of
Leadership, and Customer Intimacy,
resources and capabilities which enable
reach. While the price must be realistic,
and maintain threshold standards in
it to satisfy these needs in ways that are
the total value proposition including
the other areas. Reimann et all (2010)
difficult to copy even in a commoditized
product and services received must be
found however that empirical evidence
1. Focus on Customer Intimacy
showed that as markets become more commoditized, firms leverage operational excellence and product leaderships to showed that drive as performance markets become to a more much commoditized, lower extent. The firms reason leverage couldoperational be that changes excellence occur and in customers product leaderships as to drive markets evolve. performance to aAsmuch markets lower mature, extent.total Themarket reason spending could be that on marketing changes occur and promotions in customers typically as markets increases. evolve.As As markets mature, a result, total market customer spending knowledge on marketing grows,and andpromotions customer preferences typically increases. can become As a more result,clearly customer defined. knowledge By focusgrows, and customer ing on customer preferences can become intimacy,more according clearlyto defined. Hax (2003), By focusing firms are on able customer to better intimacy, understand according those to Hax preferences (2003), firms and are able to better meet the needs understand thoseofpreferences customers. and Ultimately, meet thecustomer needs ofintimacy customers. may Ultimately, be the critical customer and intimacy essentialmay factor be driving the critical and essential differentiation. factor driving differentiation. BASF, one of of the the world’s world’s largest largestproducers producersof ofindustrial industrialpaints paintsoffers offersits itsvast vastknow-how know-howininpaints paints toto operate operate carcar manufacturer’s manufacturer’s paint shops, providing paint shops, all coating providing products all coating specified products by thespecified customerbyand thecharging customer not and bycharging the volume not of bycoatings the used but the volume of number of coatings painted car used bodies but the passing number theofquality painted checks car bodies (Kashani, passing 2006). theBASF quality fought checks commoditization (Kashani, 2006). byBASF becoming knowledgefought able with commoditization the business of bytheir becoming major knowledgeable customers and with by using the business that knowledge of their major or intimacy customers to bring andvalue-added by using products and that knowledge services to theiror markets. intimacy to bring value-added products and services to their markets. 2. Create Targeted Extensions Kashani, Professor of Marketing Marketing at at IMD, IMD, Lausanne, Lausanne,Switzerland, Switzerland,identified identifiedaanumber numberofofvalue-added value-addedstrategies strategies designed to differentiate products or services from the commoditized core business. The core product is low on
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The Ritz Club 150 Piccadilly, London W1J 9BS +44 (0)20 7499 1818 www.theritzclub.com @TheRitzClub
AUGUST 2015
4 Steps to Value-Added Differentiation John Edmunds August article
designed to differentiate products or
when competing with highly-differenti- 4. Solutions Strategy for Customer
services from the commoditized core
ated product offerings.
Problems
business. The core product is low on both value added dimensions and
3. Develop a Systems Value Proposi- Strategies which move away from the
lacks sufficient differentiation to avoid
tion
core business and addresses specific
commoditization. Customers do not
customer problems with specific solu-
perceive compelling differences be-
The value-added proposition for the tions – solutions that combine tangible
tween the firm and its rivals. A strategy
customer lies in the integration of the products with highly focused intangi-
of ‘Targeted Extensions’ adds value by
system’s constituent ’Bundle’ of ele- ble services such as technical advice,
stretching the firm’s core offering into
ments around the commoditized core training and consulting etc. Solutions
new ‘Segments’ and ‘Customizing’ the
product offering. Firms choosing to strategy demands innovation in value
standard product for specific require-
compete in this quadrant develop a creation to move away from the core
ments in these new segments. This may
package of products or services that business but brings attractive margins.
involve extending product portfolios to
offer the benefits of a well-established
include a broader range of cost-models
core offering with additional features,
and feature-sets in order to minimise
modules or services which are of much
costs when competing with price-lead-
higher value to the customer.
ership models and maximise margin
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