December Edition Infinity Gaming Magazine

December 2012

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Publication Infinity Gaming Magazine are operated by Š Clever Duck Media Ltd Ž Company Reg. No. 687 1018 (Registered in England) V.A.T reg. no 972 6372 91

Editors notes Hello and welcome to the December edition of the Infinity Gaming Magazine, well here we are with the last edition of 2012 and what an edition we have for you!

A world exclusive with PokerStars on the re-launch of Full Tilt Poker, with part 2 coming in the New Year, that is the way to close off 2012.

It certainly has been a memorable year not least for the re-launch of Full Tilt Poker which in turn paid back several hundred millions to stressed out online poker players, well done PokerStars.

Business Partnerships Svetlana@gaming-awards.com

We have seen mergers, departures and new launches, I wanted to send out a special message to Jim Ryan the departing co-CEO of bwin.party, a gentleman through and through, whether you are a competitor of bwin or not Jim Ryan always played it straight and fair. We wish him well for the future.

Contact Us

Enjoy the December magazine, the usual news, views and interviews along with that exclusive from PokerStars. Have a great end of year and for all those celebrating the Christmas period, have a good one.

Sponsorship Opportunities Colin@gaming-awards.com

Clever Duck Media Suite 105 Park Plaza Point South Hayes Way Cannock WS12 2DB UK

Will see you in the new year.

Warm Regards, Lana Thompson

Tel: +44(0)1543 578 689

JOIN US

Contributing Writers: Sarah Francis - Productive Payments Martin R. Baird Judith Lewis

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Interview with Eric Holreiser Head of Corporate Communications at PokerStars on page 7

CONTENTS World Exclusive Interview with PokerStars Eric Holreiser Jackpotjoy float their duck Danish Gambling Authority identify 8 more for blacklist Interview with Rohin Malhotra Meet Japan’s Pachinko D Dream Girls!

What’s next for tech in 2013?

EU causing more difficulties for online gambling companies Interview with Adrian Layton (CEO) Emu Group – Emu Casino Playtech Announce Ron Hoffman as Group Finance Director William Hill reduce offer by £50 million for Sportingbet UK Government to cut online gambling tax?

Zynga applies for Nevada poker license Caesars recommended for online poker license Bally considers bid for 3G Studios US states will forge ahead with online gambling PokerStars considers buying Atlantic City Casino MGM name new President & Chief Marketing Officer Lucien Barriere boss in paternity fight Madrid to alter casino laws for Euro Vegas Macau sees 8% rise for November Macau: “Broken Tooth” has been released Macau’s VIP sector to pick up in 2013 It’s official U.S federal online poker bill “dead” Blame game starts as US Fed bill for online poker dies Indiana wants legislature to help casinos New Jersey readies for online gambling bill

INTERVIEW

ARTICLE

NEWS

TECH 6 9 9 10 13 14 17 18 23 23 23 25 25 25 25 27 27 29 29 31 31 31 33 35 37 37

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World Exclusive Interview with PokerStars on the build up & launch of Full Tilt Poker With Eric Hollreiser, Head of Corporate Communications

Q: Firstly thank you so much for speaking to Infinity Gaming Magazine

on this very special event for the entire online poker playing community.

Indeed the re-launch of Full Tilt Poker will go down in history as one of the defining moments of 2012.

right information and portrayed in an accurate way. Given the misperceptions that are sometimes perpetuated in our industry, this was super-important.

Can we start at the beginning, when the announcement by PokerStars was made that they were to re-launch FTP after the agreement was reached by the US DOJ and all other parties, what was the mood like at PokerStars?

Q: What were the biggest challenges to PokerStars on the logistics of re-launching FTP, was it communicating to FTP poker players, arranging the funding system, moving the servers, hardware to Isle of Man or something else?

EH: Everyone was very happy to get it behind us and really proud about

EH:

being able to revive Full Tilt Poker and –especially – to be able to pay the players back. It was really a happy day: lots of high-fives, smiles and excitement. We popped some champagne. Then we went back to work...

Q: Of course PokerStars is the biggest online poker site in the World,

but the task of launching FTP and the logistics about that must have been daunting?

EH: The team really pulled together an achieved something amazing in

getting the site up-and-running in 90 days. The Dublin office worked 24/7 as did many others in our global offices who helped out in addition to their “day jobs” to make sure the launch was successful

Q: It must have been a strange feeling having once been fierce rivals in the online poker world, to now owning and running FTP?

EH: The rivalry remains, believe me. We’re maintaining separate marketing teams and poker room management, so those guys are fighting it out every hour of every day. That kind of competition is really healthy and will foster more innovation in product and in marketing.

There’s obviously plenty of room for competition in online poker. We know that many players enjoy playing on more than one site. We believe offering a choice of high-quality, trusted brands promoting poker and innovating on the game will help to grow the overall poker market. So far, that seems to be the case.

Q: Because of all the Press interest in FTP, there was not much need to

It was classic PokerStars attitude, really. We did what we had to do to make it happen and deliver the experience players expected from Full Tilt Poker. Of course that was a logistical and technical feat, followed by an enormous customers service challenge. We also brought on dozens of customer support staff and fully trained them to be prepared for the launch. It was a monumental task and we’re really happy with how relatively smooth it all went.

Q: On the hardware, was it true as reported in the press that you flew all the FTP servers to the Isle of Man using a military cargo plane?

EH: Yes, we did indeed hire a Hercules military aircraft to fly 30 tons of Full Tilt Poker equipment to the Isle of Man. It was covered by the local media there and was really quite a

thrill to see land at Ronaldsway Airport.

worry about getting the news out there about the deal, but it must have been very busy handling all the media enquiries, how did PS go about handling the huge amount of enquiries?

Q: How did PokerStars look at making sure that both brands are separate from one another?

EH: This was a very complex and unprecedented agreement, so it was

EH: We’re maintaining separation among the key customer experience

vital that we got accurate information out as quickly as possible. We never took for granted that people would be interested or that they knew the history. Of course the trade media was following closely, but there was also great interest from mainstream media – particularly in the USA. We have a dedicated press office and we all worked very hard to get the facts out there as quickly and widely as possible.

I think our hard work was successful in ensuring players and others got the 6 ~ IGM DEC 2012

teams (marketing, poker room management, software development, etc) to ensure that we maintain the brand values, discrete experiences and competitiveness of the two brands.

Q: There must have been a huge amount of questions and concerns from FTP online customers about their funds prior to the launch, did PokerStars have to make any special arrangements to handle the amount of incoming emails?

EH: We are well-known for the high-quality and responsiveness of our

customer support staff. They are an outstanding and very professional group who work very diligently to make sure they are trained on all of the potential customers questions. In addition to adding staff to ensure we could meet the support needs, we trained existing support staff so they could be counted on to jump in as-needed. I fully expect that Full Tilt Poker will become known for having very high-quality customer support.

Q: Now that FTP is licensed under the Isle of Man, what operates out of Ireland and what from the Isle of Man offices?

EH: We’ve established The Rational Group as the parent company that

operates our brands, including PokerStars and Full Tilt Poker and based here in Isle of Man. So the executive leadership and management decisions are all taken here in Isle of Man. Much of the marketing and support services for Full Tilt Poker remain in Dublin.

Q: Was there any problems hiring staff to work for FTP, is there many of the old staff from FTP still working at FTP? EH: There are great people working at Full Tilt Poker and we’re contin-

uing to actively recruit staff in Dublin. In some cases we have actively sought former employees and some of them have returned, while others have asked about opportunities to return.

Look out for part 2 of the PokerStars interview in the January edition Covering • The re-launch of Full Tilt Poker • The secrets of the launch • What happened in the offices on the day • Customer support and would the network crash

ERIC HOLLREISER

Head of Corporate Communications Eric is a former journalist and senior communications professional in media, entertainment and technology companies, including Microsoft, Disney and Activision. He joined PokerStars in May 2011.

Eric is responsible for execution of the company’s integrated global communications efforts including external and internal corporate communications, public relations and corporate social responsibility, including across social media and talent communications. Eric lives in Isle of Man with his wife and children.

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www.gambleaware.co.uk

we are poker

8 ~ IGM DEC 2012 2012_1204 We are poker SP EN.indd 1

13/11/2012 16:49

iGaming

Jackpotjoy float Danish Gambling Authority identify 8 their duck more for blacklist It is always nice to report on some good news and for Londoners they were left wondering if they were quacking up – as they spotted a giant rubber duck floating up the Thames.

The Danish Gambling Authority (DGA) said it has identified eight more operators who offer gambling on the Danish gambling market without authorisation.

The 50ft-tall creation overshadowed the usual boats as it headed along the river, bobbing from West India Dock to the city’s Tower Bridge. The bridge

The operators in question have apparently been given advance warning & a directive from the authority to cease their activities but continue to do so, resulting in the DGA requesting assistance from the Danish Bailiffs court in Frederiksberg.

The Court ordered an injunction be served on internet service provider ” 3 “, requiring them to block all eight websites within 14 days of the order.

The DGA further expects other internet providers to follow suit in blocking the identified websites which are listed as: - delrio-casino.com – utilising Playtech software & is licensed in Kahnawake, thought to be one of five websites owned by Zirconium Gaming Limited.

- deuropacasino.com , titancasino.c om & titancasino.dk – ( Europa Casino ) owned by Imperial E-Club Limited , utilises Playtech & Videobet software & is licensed in Antigua & Barbuda.

even had to be lifted to allow the huge yellow bath toy to pass through.

The half-ton duck also sailed by the capital’s landmarks such as the O2 arena and the Tower of London to promote Jackpotjoy’s new Fundation. It plans to boost the number of times Brits laugh each day from the current 7.2, with a target of 15.

Former EastEnder Barbara Windsor, who launched the duck with a bottle of champagne, said she was hopeful that spotting the huge bird would brighten up people’s day.

- alljackpotscasino.com & allslotscasino.com – owned by Jackpot Factory Group utilising Microgaming software, licensed in Kahnawake.

- 1Bet2Bet.com – owned by 1Bet2Bet Ltd. & utilising the Merge Gaming Network & Stream2Play software licensed in Gibraltar, United Kingdom, & Kahnawake.

- megamoneygames.com – owned by Dreammakers Gaming Tech S.A., using a combination of PariPlay & proprietary software, is licenced in Costa Rica.

She said: “2012 really has been the year of the River Thames with the Jubilee Pageant, the floating Olympic rings and David Beckham jetting into the ceremony via speedboat.

“We decided to round off the year with the giant duck and it certainly cheered everyone up…. no-one could suppress a smile as they saw it sailing past!”

The enormous duck took an eight-person team over 800 man hours to cut and weld together to create an airtight structure.

The Jackpotjoy Fundation is now looking for people to submit their own ideas for wacky stunts – with entrants able to apply for funding to make their ideas a reality.

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Interview with Rohin Malhotra Founder of new social betting game Bookie Mania Q: Hi Rohin thanks for talking to us today, before we get into the interview, can you tell our global readership a little about your background prior to your current venture?

RM: I have been working in media and gaming in various roles including CEO, General Manager and Managing Director and Head of Marketing for companies like the World Poker Tour, Fox Kids Europe, Fox Sports USA, MTV Networks Asia-Pacific, PartyGaming and Chiligaming. In more recent years, in light of my strategic and operational experience, I have become more specialised in creating new businesses and revenue streams and to returning companies to profitability.

Q: You are well known on the conference circuit and for your open views on the gambling industry, has that got you into trouble?

RM: No, I do not get in trouble. I am proud of having a reputation for

having open views but I regard this as just being honest. I do not seek controversy but I do believe that an audience of intelligent attendees will see through the normal rehearsed corporate sales pitch that many people regurgitate. And if they are spending lots of money and taking time out to listen to you, I think that it would be rather disingenuous to waste their time with sales pitches and loaded answers.

Q: On to your new venture “Bookie Mania� where did the idea for the concept come from?

RM: Upon returning to the UK from the US, I became increasingly

frustrated by the lack of innovation in social betting and how gambling companies regarded social gaming as just a way of channelling players to gambling. To me, it appeared like games were not being created for social networks and social gamers but instead games that were better suited to gamblers were being placed into an environment for social bettors. Even though most betting globally is actually social, this is not reflected in the online world - which is especially remarkable in light of the prominence of social networks and how consumers use them - and so I wanted to service what I perceived to be an under-serviced market.

I came up with the idea in the Summer of 2011 but spent the remainder of the Summer convincing myself that it would be too much hassle. However, it just would not go away. So, by the time Winter arrived, I had created a business plan and decided to fly to Seattle to meet with a potential investor, a big gaming company. I was pleasantly surprised by how quickly they fell in love with the idea and took this as a sign that perhaps I should just go ahead with it. By the end of February 2012, Bookie Mania was in production - all from what used to be one of my bedrooms.

Q: Can you explain to our readers how the game works?

:

RM Bookie Mania combines betting with virtual simulation games, in that players can make bets and take bets from all kinds of directions on potentially any topic in the world - no matter how personal it is to a user and his or her friend.

Basically, players can make set bets on a range of international sports, movie charts, music charts and financial markets and can make bets on 10 ~ IGM DEC 2012

anything whatsoever with their friends. But it is not just about making bets against the House. Players can make bets with other players via this genuinely social betting exchange and can even become Bookies which allows them to act like a House. Bookie Mania recreates the offline betting experience and takes it online in a freemium game environment, where people’s wealth and reputations can be built (and lost) by their decisions on what to bet on and whether or not to pay their losses.

Q: What demographic is the game targeting?

RM: At this stage, there is no specific demographic that Bookie Mania

is targeting in any particular countries but, even at this very early stage, we are seeing many more females than in any other betting product I have come across in my career. Bookie Mania was designed to provide a betting game that appeals to the widest possible audiences by going far beyond just sports and by benefitting from being a legal betting game in all countries.

Crucially, the presence of virtual simulations without any cashing out means that Bookie Mania is welcomed in gambling territories where betting requires diversification and where people love to bet but do not like to, or cannot, gamble.

Q: Bookie Mania is now on Facebook, how has the launch been received there?

RM: It is early days but so far the response has been very good. We are going to focus on growing the Facebook application organically and as efficiently as possible and will then next year be integrating it with other applications on mobile, tablet and social networks like QQ in China.

Q: Bookie Mania is a joint venture between you and the Muckleshoot Indian Tribe, how did that come about?

RM: Actually I have entered into an equity partnership with them. I wanted to develop the company at my own cost without external interference and met with them last Christmas when the game was just an idea on a piece of paper. They saw the vision immediately and expressed their excitement on par with my own and so it felt like a great partnership even at that early stage - especially in light of their resource, gaming expertise and good nature.

Q: It has to be asked, but where is the revenue stream coming from for Bookie Mania, is it advertising or players buying-in?

RM: The primary revenue stream will be via the sale of virtual currency and , as the critical mass of players grows, advertising and sponsorship will become established.

Q: Is it true that you have accepted a challenge to dress up in drag for Bookie Mania?

RM: Yes, I believe that when you are part of something and

put your heart into it, you need to be willing to put yourself out there for the project. And so when an intern bet me that he could virally generate 5,000 users by Christmas, I told him that I would shave my legs, dress up as Ms. Santa Claus (in drag basically) and prance around Trafalgar Square on Christmas Day. He then posted it on Facebook and so I guess that makes it official!

successful gaming consultancy called Boofel Enterprises. I have great passion for all facets of gaming and media and it makes sense for me to apply that to a number of projects.

Q: What do clients of the gaming consultancy typically approach you with?

RM: Typically, the approaches have fallen into three groups and it

provides a good indication of some of the major issues being faced out there. The challenges tend to comprise helping companies return to growth and profitability using the resources available to them today, helping hungry companies to enter new markets or establish new online operations where there is little experience or limited evidence of proven business models and helping operators to facilitate a successful exit for their investors. I think that there are a lot of companies experiencing these challenges.

Q: Is Bookie Mania going to be your only

venture in social gaming or are you looking at becoming the next Zynga?

RM: I have bold goals for Bookie Mania, which requires focus in the midst of tough and resourceful competitors, but both the company and I must remain vigilant and open to developments in the market and be ready to embrace any appropriate ventures. I do not suffer delusions of grandeur and so becoming the next Zynga is not one of my objectives currently.

Q: Changing the subject slightly and back to a topic you know very well, poker, what do you think of PokerStars purchasing FTP and the recent re-launch?

RM: Pokerstars is clearly a smart company and

Q: Talking of Zynga, where do you think that company has gone wrong and do you think their entry into real money poker will be a success?

RM: I think that it would be wrong for me to say that

Zynga has gone wrong in any sense. It is true that it is going through a challenging time. The company is publicly-listed and so is now subject to different levels of scrutiny and a higher level of exposure - which whilst is in the fiduciary interest of its investors - puts extra pressure on the company during what is an already challenging time.

If you then factor in that it is now engineering an evolution to its diversified businesses and re-purposing some of its focus - in addition to bedding down new key managers to help with that evolution, it would be more accurate without more information to conclude that they are simply going through a tough period.

Will they be a success in real money poker? Now that is a different matter and I feel that whether they will succeed with simply be determined by what objectives they set and how much they outlay to meet those objectives?

One only hopes that they set sensible objectives and spend accordingly - a successful business is a strong business, not a loss-making behemoth.

Q: So will you be concentrating on making

huge success or do you have your next project

RM: I am committed on making Bookie

I am also likely to be managing other projects

Bookie Mania a lined-up Rohin?

comand

Q:

predic-

RM:

of

think into and it will sucor invesby those to. If more social

managed to come out of the series of events since Black Friday as somewhat of a saviour as opposed to a potential villain that was ejected from the US market. Moreover, if they are now in a position to re-enter a regulated US market in whatever shape or form as appears to be likely according to some commentators, some of those other panies that left the US post-UIEGA may rue their actions start thinking of what might have been.

Finally Rohin, as we hurtle into 2013, have you got any tions for the year for our readers to look out for?

I think that it will be another year of transition for some the Poker markets but I see a year of considerable growth ahead for the social betting sector. Moreover, I that the diversification of social gaming companies gambling will be especially interesting for poker, bingo casino products. Many of the people that are saying that work are frankly people who have a vested interest in it ceeding either as an operator, software provider, network tor. On the other hand, many of the sceptics are dominated who could not do it to any great degree even if they wanted diversification is successful, I think that we can expect a lot consolidation and strategic alliances between the different and real-money sectors.

Mania a success. though as I have a IGM DEC 2012 ~ 11

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• Trek to the roof of Africa • • Conquer the world's tallest freestanding mountain • • Hike through several climate zones • Sleep beneath star-studded skies • • No technical climbing ability required • • Help raise funds to support our front-line services • The Responsible Gambling Trust is an independent, national charity committed to minimising problem gambling and gambling-related harm in Britain through effective education and prevention techniques, which stop people getting into problems with their gambling, and ensuring that those that do develop problems receive fast and effective treatment and support.

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Registered charity number: 1093910 www.responsiblegamblingtrust.org.uk

Meet Japan’s Pachinko D Dream Girls!

Pachinko gaming is a massive, monster-sized industry in Japan. Sure, the average parlor may just look like brainless zombies chain smoking and playing with flashing lights and little steel balls, but THAT GAME also commands 40% of the leisure biz in Japan

It keeps millions employed and makes four times as much profit as the rest of the world’s legal gambling combined. Still, you can never get enough promotion or free publicity…

them all electronically via their official homepage and blog.

Thus, game manufacturer Daiichi has decided to form an official new team known as the “D Dream Girls” to represent the timeless magic and allure of pachinko...

Like every “team” out there, D Dream Girls needs a gimmick or several piled on top of each other, and Daiichi has hedged their bets by decking out all six girls with glasses and thigh high stockings for a look that is being described in official press materials as “neo sexy” (it kind of just looks like girls in glasses and thigh highs to us, but who’s complaining…).

Also, for good measure, each girl, carefully selected from a presumably grueling application process, has been assigned a spot on a sliding scale from “cutie” to “beauty” to “sexy”.

The D Dream Girls were officially unveiled in December at the press event for the CR Fire Dynamite King machine amidst much hype (yes that is another Pachinko game) What’s next for the D Dream Girls?

Pachinko promotion and gravure modeling seems very, very likely.

Hopefully a terrible song and PV are in the making as well. But until such a day arises, you may now stalk

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What’s next for

Making predictions is a dicey business. But it’s customary (and fun) to imagine what the New Year will bring in tech, and determine how topics and trends that surfaced in 2012 will evolve. With that in mind, here are some of the areas that are worth keeping an eye on in 2013.

RIM comeback?

These haven’t been kind times for BlackBerry-maker Research In Motion, which probably did more to usher in the smartphone era than any other company. By last January, with the BlackBerry franchise very much in decline, RIM replaced longtime co-CEOs Mike Lazaridis and Jim Balsillie.

Current CEO Thorsten Heins faces a major test on Jan. 30 with the global launch of BlackBerry 10. The newest BlackBerrys will include a touch model and one that exploits a traditional BlackBerry strength — physical keyboards. I liked what I saw of very early prototypes, but they were just that, early prototypes. It remains to be seen not only what pundits think of the new phones but, more important, what the consumers and businesses that RIM needs to attract as buyers think.

Having enough compelling apps to compete against Google’s Android phones, and especially Apple’s iPhone, is critical. And even if the phones are well received, it doesn’t mean RIM will have a winner at the cash register. Many folks (me included) like Windows Phone 8, for example, but such devices still lag behind the market leaders. I would by no means consider RIM down for the count in this fast-changing market. I wouldn’t bet the farm on a major turnaround, either.

Sales of Windows 8

OK, so Microsoft had its big launch party for Windows 8 in 2012. But next year is when we really start to measure Win 8’s impact. The early reception is mixed. I appreciate the fresh touch-friendly, tile-based interface in Windows 8 and give kudos to the company for trying something radical.

But people have been fretting about how dramatically different Windows 8 looks and behaves — for starters, no more traditional Start menu.

Microsoft also confused matters by introducing two main flavors of Windows 8. An RT version is optimized for mobile devices running ARM-type processors and is incompatible with all the legacy Windows software out there, though it does run a special version of Office. Then there’s the full Windows 8 version, which will run older programs. Microsoft charges $499 (on up) for the RT version of its much-ballyhooed Surface tablet.

Apple TV

Forgive me if you’ve heard this one before, that Apple intends to reinvent the TV market, blah, blah, blah. But Apple CEO Tim Cook lent credence to the rumours when he admitted to NBC’s Brian Williams that TV is “an area of intense interest. I can’t say more than that.”

Apple, of course, already sells the Apple TV set-top box and could try to tame the TV experience by doing more to jazz up the product, perhaps with iOS-style apps and games.

But longtime Apple follower and Piper Jaffray analyst Gene Munster expects something more ambitious: a real Apple-branded television. Speaking at the recent Business Insider Ignition conference, Munster predicted that Apple would bring out a 42- to 55-inch TV set next November that’s priced between $1,500 and $2,000. Features would include a simplified TV interface and remote control, voice control, FaceTime and apps.

As they say in TV Land, stay tuned.

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Sales have reportedly been extremely soft so far, though distribution has also been limited. Microsoft says it’s adding retailers. Still, that doesn’t bode well for the Intel-powered Surface with Windows 8 Pro, when it comes out in a few weeks, at $899 on up.

tech in 2013?

Kindle Phone. Amazon.com CEO Jeff Bezos won’t spill the

beans on rumours that his company is working on a smartphone. What he will say is that Amazon doesn’t make a whole lot of money selling hardware such as the Kindle Fire HD tablet. Instead, the payoff comes when you’re lured into Amazon’s vast content ecosystem for books, movies, TV shows and games. Does a smartphone that runs some version of the Kindle Fire/Android-based operating system fit into the strategy? In 2013, we may find out.

very real and has been used by industry for some time.

The technology shows mainstream promise. Three-dimensional printers contain the metals, plastics and other materials required to make a physical object.

A company called Shapeways, for example, lets consumers design and print a variety of 3-D objects, from rings and iPhone cases too little toy statues.

Retailer Staples recently announced plans to launch a 3-D printing trial in three European countries early next year with other countries to follow.

Using this so-called Staples Easy 3D service, you’ll upload your digital model to Staples, then be able to pick up the finished item in the store.

Meanwhile, nascent 3-D printers for the home have been very expensive

The Internet of Things It’s not likely to happen in a big

way immediately. But you’re going to hear a lot more about the Internet of Things, sometimes referred to as M2M (for machine-to-machine communications). Verizon identifies M2M as one of the key business tech trends for 2013. What is it? Think physical objects that connect to other physical objects and, ultimately, to you through the Internet.

Verizon believes that such connections now cover much more than smart-energy delivery and smart cars. The company points to elaborate networks of sensors that will have an impact on health care, the first consumer-ready wave of automotive telematics and more.

but are reaching more-affordable levels. A Brooklyn company called Solidoodle plans to start shipping the third-generation Solidoodle 3-D printer in January at $799; a second-generation model costs $499. And Solidoodle is selling a $43 2-pound spool of plastic filament that would help you create your item.

One example from Mark Bartolomeo, a Verizon global vice president: When you buy a soft drink, distribution companies can deploy “intelligent vending machines” to stay well-stocked based on consumer preferences.

• Mainstream 3-D printing. It seems like magic: You can create an honest-to-goodness physical model from a digital model. But 3-D printing is

IGM DEC 2012 ~ 15

16 ~ IGM DEC 2012

EU causing more difficulties for online gambling companies A partnership announced last week with bwin.party Digital Entertainment and a Belgian casino group has defused one of many disputes pitting online gambling companies against governments across Europe.

The agreement came a month after bwin.party’s co-CEO was questioned

by Belgian authorities in an escalating licence dispute the company said was costing it 700,000 euros ($916,000) in monthly revenue.

By joining forces with Belcasinos, a unit of local casino owner Group Partouche, bwin.party neatly met a requirement to have a presence in Belgium to win a licence for online poker, casino and sports betting.

The agreement is a rare bright spot in a tough regulatory environment for online gambling companies across the continent.

Betting online on sports events or playing poker on the Internet are increasingly popular pastimes in Europe, where operators say they are held back by unfair and discriminatory rules in many European Union countries.

“It is not a European Union in any way, it is a patchwork of different countries who happen to be in the EU,” said Professor Leighton Vaughan Williams, director of the betting research unit at Nottingham Business School in central England.

“Different countries have different vested interests and different ideas they are trying to promote. Are they trying to protect consumers or to maximise their tax take?” he said.

The 27 EU member states retain the right to regulate their gambling sectors as they see fit, but rules must comply with EU law, broadly meaning they must be consistent and proportionate.

Some companies are scaling back activities in European markets where, they say, regulatory risks are too high or tax rates are punitive.

Betting exchange operator Betfair for instance said this week it was halting marketing and investment in unregulated markets, including EU members Cyprus, Germany and Greece.

William Hill, Britain’s largest bookmaker, has joined Betfair in pulling out of Greece and has also stopped offering sports betting to German residents because of a 5 percent turnover tax.

STAKES RISE The stakes are high. Online gambling is growing at an annual rate of almost 15 percent in the EU and will be worth an estimated 13 billion euros ($17 billion) by 2015, according to EU figures.

The European Commission, the EU’s executive, stepped in to the debate in October when it published a medium-term plan to clarify regulations

and promote cooperation between member states, ruling out EU-wide legislation for the time being.

“All citizens must be adequately protected, money laundering and fraud must be prevented, sport must be safeguarded against betting-related match-fixing and national rules must comply with EU law,” Internal Market and Services Commissioner Michel Barnier said, setting out his approach.

The online operators accuse the European Commission of failing to follow through properly on complaints lodged about regulation in no fewer than 20 or the 27 EU member states.

Barnier has written to member states accused of breaching EU law in the way they handle gambling, seeking an update on the situation by the end of the year.

However, the industry questions whether the EU will go into battle over gambling when it is facing so many other problems.

“They will chip away at some of the most blatant ones,” said Clive Hawkswood, chief executive of trade body the Remote Gambling Association.

“What we really need is for them to take some to the European Court and take enforcement action.”

BRITISH TAXES Gambling companies themselves have taken advantage of different tax regimes where they work in their favour.

This is illustrated in Britain, historically the biggest betting market in Europe and a place with a well-developed gambling culture where bookmakers have operated in town centres for 50 years.

In recent years, most betting companies have moved their British online betting operations to Britain’s overseas territory of Gibraltar. There they are sheltered from a 15 percent tax on gross profit faced by operators based in Britain.

New legislation will close off that loophole after 2014. The shift to a taxation model based on the location of the consumer was expected to cost gambling companies as much as 270 million pounds ($435 million) by 2016-17.

Analyst Nick Batram at brokerage Peel Hunt said smaller players would likely be picked off because of the impact of higher tax and regulatory burdens across Europe.

“It is getting more complicated and more expensive. There is more change afoot but it should ultimately play into the hands of the better-capitalised companies.”

In that vein, William Hill has provisionally agreed a 485 million pound takeover of smaller rival Sportingbet, keen to get its hands on the company’s regulated Australian betting business.

“I think there is a lot more M&A activity to come,” said Batram.

IGM DEC 2012 ~ 17

Interview with Adrian Layton (CEO) Emu Group – Emu Casino

Always looking for the latest innovations and start-up companies, Infinity Gaming Magazine speaks to Adrian Layton of Aussie facing online gambling company Emu Group.

Q: Adrian thank you for talking to us today, can you firstly tell our readers when was Emu Group launched?

AL:

AL: My pleasure, thanks for having

me. Sure, Emu Group was formed in September 2011.

Q: What was the idea behind The

Emu Group and indeed EmuCasino?

AL: We set out to create an original

company, image and product range within the online entertainment industry. Emu Group was formed as the parent company with sights set on offering a portfolio of products across a number of categories; all of which are spired by our iconic character the ‘emu’.

Our first release has been with Eddy the emu and our Aussie themed Online Casino – EmuCasino.

Well besides our mate Eddy and the refreshing touch he brings to the world of online gaming, we offer over 250 (255 last count) games from Microgaming with no downloading required.

Our free $3 kick-start cash on registration with no turnover or restrictions on games has definitely been very popular with getting people through the door, not to mention our Triple Welcome Deposit Bonus up to $300.

But I do believe that it is our attitude and our day-to-day approach that sets us apart from the crowd. It is such a competitive industry out there whilst we aim to remain humble and completely customer obsessed with everything we do.

Q: How is the Australian online business looking, is it a growing market? in-

Q: The company is based in Malta, why Malta, why not Australia?

AL: Currently we are based in Malta as it works best for us to be located in the heart of the online gaming industry. We have a team that spans into Australasia and Asia.

Q: Players can only deposit and withdraw in Australian Dollars, is that correct?

AL: Correct. We had a choice on what currency to offer when we built the site and chose Aussie Dollars to fit in with the overall theme of the site. We however do plan to offer other currencies in the near future, as we have found that we are getting interest from players all over the globe.

Q: Is the website EmuCasino only for Australians then?

AL: Not at all. The product and theme naturally appeals

to Aussies that can associate directly, but we have players from all over the world playing on EmuCasino. I think Eddy and the brand, just have a friendly look and feel that appeals to people.

Q: Is the company looking to attract not only Aussie players but International?

AL: All international customers are welcome to play, although there are certain countries that we restrict such as the United States.

18 ~ IGM DEC 2012

Q: What makes EmuCasino different from its competitors?

AL: I believe there are large opportunities in this region, with plenty of opportunity for further growth.

Q: Ok we have to ask, who is Eddy the Emu?

AL: Ha I knew you would. Well the

evaluation of Eddy the emu is an interesting one… When we formed Emu Group we knew we wanted an emu symbol to represent the company image and we came up with the silhouette that you can find on our corporate website. We wanted to develop this further into a character with a personality when we built the casino and after a drawn out period of almost 4 months we landed with what you now see as Eddy. You can see the evolution we went through on our Facebook page: facebook.com/emucasino.

We are actually quite excited with our ideas on bringing in other emu characters as well develop our online entertainment portfolio.

Q: So how has the site done since its launch?

AL: Great. It has been the most exciting start ups that I have been involved with. Our brand and image has been so well received from the industry across the players, affiliates and suppliers with almost all feedback being very positive. Business has been multiplying every week as we learn what our players really want in a casino product and offer a service that meets their needs.

Q: So how has the site done since its launch?

AL: Great. It has been the most exciting start ups that I have been

involved with. Our brand and image has been so well received from the industry across the players, affiliates and suppliers with almost all feedback being very positive. Business has been multiplying every week as we learn what our players really want in a casino product and offer a service that meets their needs.

Q: What games does the site offer?

AL: We offer everything from Online Pokies (slots to anyone outside Oz), Blackjack, Roulette, Video Poker, Scratchies, Jackpots and many more. We have the entire Microgaming catalogue at our fingertips.

Q: Does the

company think that this is something for the future for specific nationality facing online gaming sites?

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AL: Possibly.

At the end of the day, people will naturally connect more with a product or brand that is familiar and that they can trust. In an industry flooded with brands I believe that customer confidence and association is number one. We believe we have achieved this within the market that we appeal most too.

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Q: So what does the future have in store for Emu Casino in 2013?

AL: Gees, I just got a flash of how quick this year has gone already.

Well, with what we have all achieved in the time since we launched earlier this year, we’re quite excited to taking on 2013. With EmuCasino, we plan on developing and evolving the product further, focusing on the end user experience and making everything as simple and easy to use.

We’ll also be running some exciting competitions and campaign for our current and new players.

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iGaming Sportingbet shareholders would have the opportunity to apply to receive proportionately more cash or more GVC shares,” read a statement from William Hill.

Announce Ron Hoffman as Group Finance Director

Playtech has confirmed that further to its announcement on 30 August 2012, the Board of Directors of Playtech has accepted the resignation of David Mathewson as a director of the Company with effect from 31 December 2012 and agreed to appoint Ron Hoffman, currently Vice-President of Finance, as Group Finance Director.

Ron Hoffman, 36, is a qualified accountant and has worked in the Playtech finance team for over eight years before which he held a senior managerial position at Ernst & Young in Israel.

Commenting on the appointment, Playtech’s Chairman, Roger Withers, said: “I am delighted that Ron is joining the Playtech Board at this important time in the Company’s development. He has considerable experience within Playtech’s business and has been integral to all of the Group’s successful acquisitions over the last few years and worked closely with David Mathewson.

“Certain Sportingbet shareholders [including] DBS Advisors Limited, Mark Blandford, Rockridge Investments SA and various Blandford family trusts and Henderson Global Investors Limited in aggregate holding 74,664,168 Sportingbet shares representing approximately 11.2 percent of the Sportingbet shareholder register have confirmed to the board of Sportingbet that they are supportive of the revised proposal and indicated that their current intention would be to elect to receive the maximum amount of new GVC shares available under the mix and match facility. If such elections were made in the event of a formal announcement, the cash amount per share of the revised proposal available to the rest of the Sportingbet ordinary shareholders who elect to receive the maximum amount of their consideration in cash and minimum in new GVC shares would be approximately 50.4 pence equating to approximately 91.7 percent of their total consideration.

“However, there can be no guarantee that if a firm offer is made by William Hill and GVC those Sportingbet shareholders will make such elections to receive only new shares in GVC and no cash consideration.”

UK Government to cut online gambling tax?

“On behalf of the Board, I would like to thank David for his important contribution to Playtech, in helping the Company through to raising capital and the move to the main market, and we wish him well in his future.”

William Hill reduce offer by £50 million for Sportingbet The UK government is rumoured to be trying to entice UK gambling firms to return to the U.K. with a better tax regime more in line with other jurisdictions, believed to be in the region of 10% instead of the current 15% that was introduced by the previous Labour government.

Months of negotiations and William Hill along with fellow sportsbook provider GVC Holdings have reached a conditional agreement that would see them acquire the entire share capital of Sportingbet for some £50 million less than previously offered following weaker than expected results

by Sportingbet.

London-based William Hill revealed that the revised proposed offer was agreed following a detailed due diligence process and values each Sportingbet share at 56.1 pence and includes the previously announced final dividend of 1.1 pence per share.

William Hill stated that the revised offer values the proposed acquisition at approximately £485 million and would see Sportingbet shareholders receive 44.8 pence alongside a 1.1 pence dividend in cash for each share in addition to new GVC shares at a rate of 0.0435 to one.

Protesters have said though that a tax cut for the online gambling industry would lead to more social problems by encouraging gambling in Britain.

A director of Tax Justice Network, John Christensen, commented, ‘It really doesn’t make much sense to lower the rate of taxation to try to bring them back to the UK. The tax rate should remain as it is.’ The opponents to the tax break have suggested that some countries in the European Union have even higher taxes and have more restrictive policies with regard to online gambling activities. The treasury is looking to slash taxes on online gambling by one third estimating that even a five percent cut in the current rate would give operators £100 million in tax savings per year.

Hugh Robertson, the U.K.’s Minister for Sport and Tourism, commenting on the proposed bill said, “These proposals will ensure that British consumers enjoy consistent standards of protection, regardless of where a gambling business is based.”

“The revised proposal contemplates a ‘mix and match’ facility under which IGM DEC 2012 ~ 23

24 ~ IGM DEC 2012

N.America

Zynga applies for Nevada poker license

Bally considers bid for 3G Studios

Zynga has filed an application to the Nevada Gaming Control Board for an online gambling license within the state.

Bally Technologies is reported to be exploring a bid for online poker game developer 3G Studios, in what would be the latest deal to combine online gambling and casino gaming on social media.

Reports out of Nevada say several Bally Technologies executives were scheduled to visit 3G’s offices in Reno, Nevada early this week to determine whether to make a formal bid.

Zynga sees this as part of its efforts to offer real-money online gambling, the state of Nevada will review Zynga’s financial status and the decision could take between 12 to 18 months.

“We anticipate that the process will take approximately 12 to 18 months to complete. As we’ve said previously, the broader U.S. market is an opportunity that’s further out on the horizon based on legislative developments, but we are preparing for a regulated market. We’ve also recently partnered with bwin.party to bring the highest quality real money gaming experiences to our UK players in the first half of 2013,” Zynga chief revenue officer Barry Cottle said in a statement.

Zynga has already partnered with Bwin.party Digital to launch a full suite of real-money gambling gamesin the UK during the first half of 2013.

This year, Nevada began offering licenses to companies to allow online gambling for players in-state. MGM Resorts International holds one license and is also teaming with Bwin.party, while Caesars Entertainment Corporation received preliminary approval for its online poker license on Wednesday

Caesars recommended for online poker license Caesars Entertainment on Wednesday were recommended for a license

to operate online poker in Nevada.

At a meeting in Carson City, the State Gaming Control Board voted to recommend a license for Caesars to the Nevada Gaming Commission. The commission could issue the license before the begining of 2013 to Caesars.

The gaming operator which has the largest share of the US casino market, plans to offer online poker with its World Series of Poker brand.

If approved, Caesars would be the 17th company licensed to participate in Nevada’s emerging online poker sector. Some of the previously approved applicants are ahead of Caesars in the technical testing phases needed before going live.

Caesars plans to launch online poker once its partner 888 Holdings is licensed, possibly next year.

Mitch Garber, who heads Caesars’ interactive division, said marketing and operational plans for online poker have been established.

“We are ready, the people are in place,” he said.

Bally have made no official comment on these runours, along with Abbi Whitaker, a spokeswoman for 3G Studios declined comment but acknowledged the company recently hired Wedbush Securities as its financial adviser.

Another source familiar with the matter said 3G, which helped develop a mobile version of the music video game Rock Band for Harmonix Music Systems, had been talking with others about a potential acquisition or partnerships.

“3G is holding initial talks with potential buyers,” said that source,mentioning video game maker Activision Blizzard, slot-machine maker International Game Technology and video game giant Electronic Arts as potential buyers or partners.

A sale of 3G could range between $60 million and $100 million, the source said.Activision Blizzard had no immediate comment, while IGT and Electronic Arts declined comment.

In August, 3G Studios applied to the Nevada Gaming Control Board for an online gaming license, and it is scheduled to start an online poker site called SlotALot with casino operator Eldorado Hotels in the spring. It also makes a free game available on tablets and smart phones that is played for virtual currency.

US states will forge ahead with online gambling Deutsche Bank gaming analyst Andrew Zarnett believes that in the absence of any federal legalisation for online poker it is almost certain that individual US states will provide their own legislation in 2013.

With the Reid-Kyl bill struggling to make headway in the dying days of the current Congress, eyes are turning toward a state-by-state solution Zarnett’s perspective comes against a background of increasing desperation as the Reid-Kyl bill struggles to garner support; this week the American Gaming Association issued a statement urging Congressmen & women to get behind the bill, which seeks to legalise online poker at the expense of other forms of online gambling.

The analyst suggested that investors should “shift their thinking” to the implications of possiblle legalisation on a state-by-state basis. He referred to current intrastate moves in Nevada , saying that once operations commence in the state, which has already approved a number of internet poker licenses, a practical assessment of economics, tax, tribal issues & the general pros & cons would become more reliable.

IGM DEC 2012 ~ 25

26 ~ IGM DEC 2012

Gaming

Considers buying Atlantic City Casino

Name new President & Chief Marketing Officer

PokerStars who are on a roll after re-opening Full Tilt Poker last month is now looking to buy a land based casino in stuggling Atlantic City.

MGM Resorts has announced the promotion of Bill Hornbuckle to President & Chief Marketing Officer.

The move reportedly is in anticipation of New Jersey legalizing online gambling, which the state could still do before the end of the year, as reported by the iGaming Post this week (see previous report).

In the newly-created position that will report to Jim Murren, Chairman & CEO of MGM Resorts International, Hornbuckle will assume expanded responsibility to include Gaming Development.

If PokerStars were to be licensed under a legal New Jersey intrastate poker system, it would have a foot in the door for offering online poker once again nationwide if a federal bill ever passes.

“Bill Hornbuckle is widely regarded as one of the most strategic and effective leaders in the hospitality and entertainment industry,” Murren said. “Since assuming the newly-created role of CMO for the company in 2010, he has been focused on growing the company’s relationships with our customers and guests. He has achieved this with significant success, for example, in the creation and growth of our M life customer loyalty program,” Murren added.

It is believeved that PokerStars might buy the Atlantic Club casino from investment group Colony Capital. According to a state revenue report, as of October, the property had taken in $109,682,021 for the year, a decline of some 12% on last years results.

PokerStars was kicked out of the American market after online poker’s Black Friday in April 2011. The case against the company was settled in July, but its former owner, Isai Scheinberg, remains to settle his legal obstacles with the Justice Department.

The government let PokerStars settle without admitting any wrongdoing, however Mr Scheinberg is still under indictment.

With the massive $731 million settlement, PokerStars took over then-defunct Full Tilt Poker.

The New Jersey move is unique, but PokerStars has a history of being an active participant in online gaming plans in a U.S. state. Before Black Friday, the firm was lobbying to get Nevada to legalize online poker. Nevada eventually went on to legalize without PokerStars as its wingman.

PokerStars had a deal with Wynn Resorts, but that dissolved after the indictment.

Murren said the appointment evolved from the execution of the company’s strategic plan that included expanding the company’s presence domestically and internationally.

Murren also announced expanded responsibilities for Corey Sanders, the company’s Chief Operating Officer, Bobby Baldwin, President & CEO of CityCenter, and Dan D’Arrigo, Chief Financial Officer.

Sanders will have expanded oversight and leadership of the company’s operating functions including Retail, Corporate Advertising and Sales divisions in support of the company’s growth strategies. Baldwin will assume the day to day leadership role for the ARIA, Vdara, and Mandarin Hotels, as well as CityCenter Residential and Crystals Retail. Sanders, Baldwin and D’Arrigo will continue to report to Murren.

“Bill, Corey, Bobby and Dan are part of a leadership team that is high performing and recognized as among the best of the best in our industry.

I am proud to have such strong Finance, Development, Marketing and Operational leaders as we continue to grow the company as a leader in the hospitality and entertainment industry,” Murren said.

IGM DEC 2012 ~ 27

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Lucien Barriere boss in paternity fight

Madrid to alter casino laws for Euro Vegas

A French court has ordered casino tycoon Dominique Desseigne to take a paternity test to determine whether he is the father of former justice minister Rachida Dati’s daughter.

The Madrid regional government is currently making changes to key local gambling laws to help benefit Sheldon Adelson’s EuroVegas project before construction is scheduled to get underway next year.

Dati, 46, a glamorous protégé of ex-president Nicolas Sarkozy, took a case against Dominique Desseigne to try to make him accept paternity in the latest case to cast light on the hitherto taboo sexual antics of France’s political elite.

The Popular Party administration of Ignacio González wants to exempt EuroVegas from a 2001 law that sanctions casinos with fines of up to 600,000 euros if they refuse to pay gamblers what they are owed or throw them

Desseigne, 68, the boss of the Lucien Barriere casino, hotel and restaurant group, has confirmed he had a fling with Dati but has refused to take a paternity test that would establish if he is the father of three-year-old Zohra.

Under French law, a court cannot force Desseigne to take the test but can interpret a refusal as confirming he is the father and thus potentially liable to support the child financially.

According to a report last month in Le Monde, Desseigne’s lawyer intended to argue that his client could not have been the father and to highlight the fact that Dati had seven other lovers around the time of the conception.

They allegedly included a television presenter, a government minister, a company chairman, a Spanish prime minister, one of Sarkozy’s brothers and a former attorney general of Qatar.

Rachida dati Friends of Desseigne quoted by Le Monde claimed that Dati had sent him threatening letters making it clear she would settle the case out of court in return for a pay-off.

They say he had holidayed with Dati in Mauritius at the end of 2007 but that the relationship ended in February of 2008 with him having made it clear he did not want to have a child with her.

out of the premises if they are winning too much.

The modification is included in the 2013 budget proposal sent to the regional legislature. The González government has also relaxed a 1977 law regulating the amount of tax casinos must pay. Until now it was based on the amount of money casinos took in, but now the tax base will be structured on the amount of prizes that the casino offers.

At the same time, the central government is making its own changes to certain laws to ensure the success of EuroVegas. One of these is to allow municipalities to exempt companies and entities from having to pay certain taxes if local officials find it fit. Included are the IBI municipal property tax and the construction and infrastructure installation fees.

Adelson has pledged to invest some six billion euros beginning at the end of the year in his massive casino hotel project, which will most likely be built in Alcorcón, on the outskirts of Madrid.

He has said that EuroVegas will create some 72,000 direct jobs in the service sector plus another 15,000 positions in the construction industry.

Desseigne’s chain, which includes 37 casinos, 15 luxury hotels and 130 restaurants and bars including the famed Parisian restaurant Fouquet’s, posted turnover of nearly 1.1 billion euros last year.

IGM DEC 2012 ~ 29

30 ~ IGM DEC 2012

Macau sees 8% rise for November

Macau

Macau’s gambling revenues saw a rise of nearly 8% for November, the world’s largest casino market, rose 7.9% for the month year-on-year, boosted by strong spending from China’s emerging middle class who have continued to flock across the border to the enclave.

The U.S. operators will probably stay away from Mr Wan should he return to running a junket operator, Gabriel Chan, an analyst at Credit Suisse Group said.

Asked last month if authorities would implement any special security measures ahead of the scheduled release of Mr Wan, the Secretary for Security, Cheong Kuoc Va said security forces have continually launched operations to tackle organised crime in Macau.

November’s revenue was US$3.12 billion, data from Macau’s Gaming Inspection and Co-ordination bureau showed on Monday. The figure was in line with analyst estimates predicting a 7-8% growth rate.

While growth rates have dropped from double-digit highs in the past seven months due to lower spending by big VIP gamblers, overall revenue has remained solid.

Annual revenue is expected to reach US$38 billion, more than six times that of Las Vegas.

On Saturday, police arrested five people on suspicion of planning to commit murder, including former police officer Artur Chiang Calderon (Chan Yuet Bo in Chinese), who was believed to be one of Mr Wan’s lieutenants.

Mr Calderon was arrested in 1998 along with Mr Wan. He was released three years ago.

Macau’s VIP sector to pick up in 2013

China’s change of leadership in November has highlighted the country’s focus on battling corruption. Tighter scrutiny and regulation of money flows going into Macau and Hong Kong have been stepped up in recent months, industry players say.

Sterne Agee a U.S.-based brokerage firm is predicting a recovery in Macau’s VIP gross gaming revenue for next year, partly due to the forecasted macro economic improvements in the mainland for 2013.

Despite increased regulation and scrutiny, overall gaming revenues are not expected to drop.

Sterne Agee’s analyst David Bain wrote yesterday in an investors’ note that “VIP growth carries close to a 90 percent correlation to China’s gross domestic product growth since the first quarter of 2009.”

Analysts are focusing on improving data from China to bolster revenues going forward. Improving transport links are also expected to bring in visitors once new rail extensions are complete, starting early next year.

Macau: “Broken Tooth” has been released

Macau is bracing itself after the release of former 14K triad leader Wan Kuok Ko.

Mr Bain notes that most macro metrics in the mainland – except yesterday’s weak export data – point to a GDP growth acceleration in the fourth quarter of 2012 in comparison with the three months before.

“While China continues its march toward a domestic consumer economy (good for Macau), external demand could slow its pace,” Mr Bain noted.

“Recall that Guangdong, the largest mainland feeder to Macau, has many export driven industries.”

He added that Macau’s November VIP rolling volume was up by 7 percent year-on-year according to Sterne Agee’s data, the best growth rate in around five months.

Mr Wan, or “Broken Tooth Koi”, was jailed in 1999 on sentences of organised crime, money laundering and loan-sharking.

His release is being watched very closely, as Mr Wan was previously a key-player in the Macau VIP junket sector.

IGM DEC 2012 ~ 31

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32 ~ IGM DEC 2012

N.America

It’s official U.S federal online poker bill “dead” Nevada Senator Harry Reid admitted on Friday that the dream of a federal online poker bill passing through Congress during the lame duck session is officially over.

With only about one week left in the 112th session of the U. S. Congress, with the new seating of Congress happening on the 2nd January, Senator Reid issued a written statement regarding the proposed legislation that he had worked on with outgoing Arizona Senator Jon Kyl. “We have simply run out of time in this legislative calendar,” Senator Reid’s statement read. The current Congress only has a handful of bills that have the opportunity to pass and linking a federal measure for online poker regulation would jeopardize passage of those bills.

the consensus that you’ve built. There will be a window next year, but I don’t see it going long.”

The journey of federal online poker legislation has been one fraught with starts and stops virtually throughout the entirety of this Congressional session. Although Rep. Barton introduced his bill last year, it received little attention save for two House subcommittee meetings. A vote was never taken on Rep. Barton’s bill and, as such, it never reached the floor of the House of Representatives for consideration.

The Senate did not even take up the issue of federal online poker regulation until after the U. S. Department of Justice ruled in December 2011 that the Wire Act of 1961 – the law most often used to state online gambling and poker were illegal – only applied to sports betting. This opened the floodgates for the individual states to start offering online gaming, from lottery ticket sales in Illinois to Nevada’s efforts to open an intra-state online poker network to Delaware’s passage of a full online casino gaming law.

“I am disappointed,” Reid added in the statement, but he did offer what might be a glimmer of hope for the future of federal action. “Senator Dean Heller (Reid’s Republican partner from Nevada) and I remain committed to this issue and it will be a priority for us in the new Congress.”

While Reid, Kyl and Heller proposed to be at the forefront of moving the issue through the Senate, they were facing more opposition to the issue than they previously had thought.

Reid and Heller were looking to ensure that Nevada would be the epicenter of a federal online gaming outlet (with the Nevada casinos providing the action), while Kyl, a longtime anti-gambling zealot, was looking to actually limit online gaming (the proposed Reid/Kyl bill would have virtually outlawed any other online gaming) before he retired from Congress. The push back from fellow Senators – not to mention the Governors of the individual states and Indian tribes – proved to be too much to overcome.

When the new Congress is seated come January, the opportunity for new legislation to be proposed (the Reid/Kyl bill was never introduced; Texas House of Representative’s member Joe Barton’s online poker regulatory bill will “die” with the end of this Congress and will have to be reintroduced) could very well be a short one. “Our goal is to definitely try again next year,” David Krone, the chief of staff for Senator Reid, “but Senator Reid’s feeling is that, after a while, there comes a time when you’ve lost

industry) in mind.

The Reid/Kyl bill would have shut all of those operations down, just as Rep. Barton’s bill would have.

While opening up online poker for American players (the players would not be allowed to play internationally), virtually all other forms of online gaming (bingo, slots, table games, lotteries, etc.) would have been banned. The Reid/Kyl bill, however, seems to have never gotten out of the gate, leading to infighting among the two Nevada senators as to who really had the best interests of their constituents (and potentially the powerful Nevada casino

With the failure of federal online poker regulation for 2012, the states are now the last option before the calendar flips. Although Nevada has their regulations in place and has awarded licenses, it isn’t until the spring of 2013 that the first sites are expected to go online. California seems to be “warming the engines” to push for online poker regulation, while New Jersey is expected to make their moves on the issue of full-fledged online casinos before the New Year. Even with these options in motion, however, it will be much longer before Americans can warm up their computers for a regulated online poker world in the United States IGM DEC 2012 ~ 33

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N.America

Blame game starts as US Fed bill for online poker dies As many US states look to renew their own laws for state online gambling such as New Jersey, California and Nevada which is almost there, the blame game has started with whom is at fault for the almost certain death of the US federal bill for online poker.

As time runs out before the closure of Congress before the Christmas break, both co-authors of the bill Senator Ried and Senator Kyl are looking at blaming not themselves for the failure but the American Gaming Association.

Senator Reid’s top policy advisor said: “The AGA had met with a lot of people and claimed they’ve done a lot of other visits,” said David Krone, Reid’s chief of staff. “But unfortunately, I haven’t seen that turned into votes.”

The American Gaming Association does not represent every casino interest on the Las Vegas Strip, much less every gaming stakeholder in the country.

But in Washington, it is the unofficial leader of a body of lobbyists who have spent the past four years pushing for an online poker bill.

the AGA. “If you’re a Democrat, it’s the Republicans’ fault; if you’re a Republican, it’s the Democrats’ fault; and if you’re trying to toe the line with both, it’s someone else’s fault. If someone wants to use that as an excuse for why this won’t happen, fine, but it doesn’t change the fact there’s clearly a need for federal action.”

Lobbyists point out that lawmakers never actually developed a bill they felt they could peddle around.

Reid and Kyl were sharing a draft of a poker bill with Sen. Dean Heller as early as last summer. But Kyl insisted the draft not be shared outside of the small group.

Since September, however, the text of that draft has been public. Reid, Kyl and Heller have all expressed confidence that the legislation is adequate to both walk back the 2011 Wire Act reading and address concerns about the security of Internet poker. In public, they continue to maintain it’s only a draft.

In that time, the poker industry has been near-unanimous in its support for some form of federal intervention to legalize betting in Internet poker games and clarifying that poker is the only form of online gambling that is allowed.

“I don’t know where things stand as far as a final piece of legislation. Within the last few weeks was the first time that any type of actual language on a bill had ever really surfaced,” said Whittaker Askew, a lobbyist with the AGA. “Being out there talking about the issue without a tangible product, which up until the last few weeks has been the case, that makes it a little more of a challenge.”

But even lobbyists admit that the industry has not been speaking with a single, clarion voice on what online poker should look like in the US.

Because of that, Askew said, the AGA focused its efforts on educating lawmakers about poker instead of aggressively whipping up votes.

“This is an industry of entrepreneurs. So saying we’re all going to think alike is not going to happen,” said Jan Jones, a lobbyist for Caesars Entertainment, likely the most active of the Nevada casinos angling for an Internet poker bill. “It’s big personalities, big thinkers. Harnessing this into one cohesive mind is a near impossibility.”

“It’s important for us to have spent a lot of time giving background, educating members and their staff,” Askew said. “We’ve been focused on this education effort for the last 18 to 20 months. So this is certainly nothing new, but it is certainly a big effort.”

So the questions is why should Washington listen to an Association that does not speak for the entire industry?

With influential Republican donor Sheldon Adelson declaring himself opposed to legalizing online poker, giving Republican lawmakers an opportunity to distance themselves from the issue, and exposing conflicts in the casino industry to the country at large.

“I don’t think everyone’s working in lockstep toward the same goal,” Jones added. “But I think the AGA has done a very good job of trying to keep their members informed and moving along a path.”

The AGA’s members reject the suggestion that the efforts — either in messaging or emphasis — were anything less than satisfactory.

Instead, lobbyists pointed an accusing finger back toward Congress as a whole and the body’s well-documented inability, these past two years, to get much legislation accomplished.

“I think this is sort of typical of politicians: It’s never Congress’ fault that they didn’t get their act together; there’s always some other reason,” said Alan Feldman, spokesman for MGM Resorts International, a member of

Still, that effort has been mostly behind the scenes. Askew detailed the public outreach part of the AGA’s work as essentially boiling down to a few press releases and two videos intended for social media: one produced in 2011 and one produced in 2012.

Lobbyists say public perception of their efforts doesn’t really matter.

“Just because it flares up in the press, doesn’t mean there hasn’t been a consistent effort,” Jones said. “If you’re really working a legislative process … you cannot let that define the path that you’re on.”

However, every casino has its own style.

“I don’t think there is really a dime’s worth of difference between our position and those of most of our colleagues,” Sloan said. “The difference may be in effort.”

There is not much time left for the federal online poker bill to pass and the hoped for bill that must pass for Redi and Kyl to attach it to, what is for certain is already even before the fat lady is singing finger pointing is starting and any chance for the future of a federal bill looks less likely in the short to mid term.

IGM DEC 2012 ~ 35

36 ~ IGM DEC 2012

N.America

Indiana wants legislature to help casinos

New Jersey readies for online gambling bill

A southern Indiana economic development association is urging the Legislature to strengthen the state’s casino industryby revising existing gambling laws to allow it to remain competitive as casinos open in surrounding states.

his online gambling bill A2578 among the other 28 bills scheduled for voting on Monday December 17, paving the way for Atlantic City land casinos to offer online gambling as early as the first part of 2013.

If the bill is approved by the Assembly, which is looking more likely Lesniak plans to drive it through the state Senate within days, possibly making it a law before 2013.

New Albany-based One Southern Indiana says the move is necessary to continue to provide the tax revenue, jobs and other benefits that have become an integral part of the economies of Indiana and cities that have casinos. Republican state Rep. Ed Clere of New Albany said that changes in Indiana gambling laws could include allowing casinos to relocate to more easily accessible sites, such as along a highway, instead of on a river or lake.

That could bring together groups from opposite ends of the state because officials in Gary also are interested in a land-based casino being approved during the upcoming legislative session. The common theme is increased competition from neighboring states.

Ten of Indiana’s 13 casinos are near neighboring states. At northwest Indiana’s five casinos, a majority of the gamblers are from Illinois or Michigan.

Those casinos are now facing possible competition in Chicago. Illinois

lawmakers approved legislation earlier this year that would bring casinos to Chicago and four other areas. Gov. Pat Quinn vetoed the bill, saying it didn’t include enough ethics protections and he wanted money from the gambling expansion to go to education. But Chicago Mayor Rahm Emanuel said recently that he and Quinn are “very close” to a deal for a Chicago casino.

Kentucky Gov. Steve Beshear has pushed to lift a constitutional ban on casino gambling in that state, but had been stopped by then-Senate President David Williams. Beshear appointed Williams in October to become a circuit judge in southern Kentucky. Beshear contends that Kentucky is losing hundreds of millions of dollars a year to neighboring states that already have casinos.

Lesniak is aware that Gov. Chris Christie may again dig his heels in & exercise his gubernatorial veto, as happened a year ago, & told local reporters this week that he has ‘no idea’ which way the governor will move on the issue.

The senator for New Jersey was nevertheless upbeat, claiming there were several reasons why the governor’s opposition may be changing; Tough economic times for Atlantic City land casinos, recently exacerbated by falling visitor rates in the wake of superstorm Sandy Maybe even on the reports out of Atlantic City saying that PokerStars are looking to buy one of the struglling casinos there, the Atlantic Club casino (see previous report) it could mean the PokerStars are back in the US operating online poker before any of their competitors. Less than a few months since their settlement with the US DOJ. Many onlookers wonder if PokerStars can see the future better than most.

Amendments to the bill to make it more palatable to the governor, including removing language that could have provided the state’s racetracks with up to $30 million in purse subsidies, & adding clauses that would prevent internet cafes from advertising to attract online gamers. # The governor has also had access to expert academic views that no referendum to amend the state constitution would be needed for the state to offer online wagering as long as the servers were based in AC casinos.

Lesniak & supporters of the bill believe it will not only raise tax revenues for the state, but enable it to become an internet gambling technology & service hub that would create more employment options for New Jersey residents.

The New Jersey legislature has already shown in a previous vote that there is substantial support for Lesniak’s proposal; his previous online gaming bill passed 32-4 in the state Senate & 63-11 in the Assembly.

The Horseshoe Casino in Cincinnati is scheduled to open in the spring and is expected to draw customers from Indiana casinos in Lawrenceburg, Rising Sun and Florence, which will mean fewer tax dollars crossing in to Indiana.

It is not yet known whether supporters of gambling reform from northwestern Indiana will work with lawmakers from southern Indiana on legislation that could help both regions of the state. State Sen. Earline Rogers, D-Gary, the leading proponent of a land-based casino in Gary, plans to bundle in one bill the casino move and other Gary-specific proposals.

When Indiana first allowed casinos, state law required the boats to go on several daily cruises and to be self-propelled. The state later approved a land-based casino at French Lick and allowed horse tracks in Anderson and Shelbyville to add slot machines. In 2002, lawmakers changed the law to allow the casinos to remain docked.

Ray Lesniak, the senator for New Jersey has been successful in including IGM DEC 2012 ~ 37

INTERNATIONAL GAMING AWARDS CEREMONY 4 FEBURAURY 2013 THE BREWERY LONDON

Book your tickets at gaming-awards.com 38 ~ IGM DEC 2012