August 2015 Infinity Gamaing Magazine

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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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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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

INFINITY GAMING

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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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

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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

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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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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-

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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.

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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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