OUR WRITERS

A magazine is only as good as the content inside and with some of the leading specialists within the gaming industry. With specialised articles covering customer service, the gaming law, new products, technology and current affairs with the sector the Infinity Gaming Magazine is delighted to showcase our superb line-up of contributing

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 Teresa Tunstall – Independent Gaming Consultant

After many years of working in casinos in the UK and on USA ships as a croupier and inspector, Teresa turned from ‘poacher to gamekeeper,’ spending 16 years with GamCare, who offer help and support to those who develop problems with their gambling.

Working closely with the betting and gaming industry, She developed strong links delivering Social Responsibility and Problem Gambling training around the world,

Teresa now works independently consulting on all issues relating to Social Responsibility and Problem Gambling.

To contact Teresa regarding consulting please email:

Andrew Cosgrove - Slots Guru

Andrew Cosgrove is a seasoned slot operations veteran and certified project manager with over 24 years of hands on experience in Latin America and the Caribbean. Andrew has worked on both the operator and supplier side of casino slots and continues to help clients succeed and exceed customer expectations. Andrew can be reached at andy.cosgrove@hemingwaycasinoconsulting.com or see http://hemingwaycasinoconsulting.com/

Lynn Pearce

Lynn has extensive senior management experience in the gaming industry, with over 18 years of proven success, having launched more than 30 casino, live casino, poker, sports betting, lottery and esports brands globally.

She is currently CEO of PLaza Holdings (Ontario) Inc.

Tim Cullimore

From dealer to CEO in the U.K., Europe and North America, Tim has pretty much seen it all in Casino gaming. For over 40 years, from running slot rooms which needed to frisk for guns to the Ritz in Mayfair, arguably the most luxurious casino in the world, Tim has never stopped challenging what we think we know about casinos. Tim is a well-respected Consultant to the gaming industry, encompassing project management and operational analysis, as well as representing and advising some key manufacturers within the industry. Tim is a renowned conference speaker and also proud to be visiting lecturer at the University of West London College of Hospitality and Tourism.

Crucial Cultural Crossroads

IN MACAU’S GAMING HISTORY

By Ryan Murray

Macau’s gambling industry has had to endure a considerable level of volatility in recent years. A mixture of internal and societal factors has conspired to undermine its growth trajectory, and re-define its position in the region’s wider economy. For years, the gambling sector was the central, sturdy pillar in Macau’s financial landscape, raking in fortunes at its tables whilst creating footfall for alternate local industries. However, whilst those days are not totally out of view, its once unshakeable foundations look like they’re producing some visible cracks.

The corona virus impact has undoubtedly knocked the wind out of its sails, with issues accentuated by particularly potent curbs on normal life. And, just as a glimmer of hope was on the horizon, the Omicron variant came to sucker punch an already ailing economy. Tightened travel restrictions have cut its lifeblood, with the authorities forbidding any inbound travel from overseas, and, perhaps more decisively, from certain Southern Chinese provinces. Macau’s reliance on external communities to dispense their cash in its casino’s has been badly exposed during this pandemic, a distant truth coming glaringly into focus. The sheer magnitude of the industry’s role in the region’s fortunes has never been contested, but perhaps it was never thought such extreme marketplace conditions would never materialise.

However, the virus hasn’t just attacked the pockets of punters and the tills of operators, it’s also catalysed the presence of a shady underworld. Cross-border money smuggling, opportunistic money laundering, and suspect junket operations have been an unwanted feature for some time, but the impact of COVID-19 has served to propel these illicit activities to the surface. Desperate times call for desperate measures, and one or two individuals have certainly taken this mantra quite literally.

Unfortunately, this increasing level of criminal enterprise is happening under the nose of a considerable global giant. The landmark arrest of Suncity’s Chief Executive Alvin Chau illustrates China’s intensity in their quest to shut down illegal gambling syndicates, and serves to underline their intervening intentions. The dynamic of China’s relationship with the smaller of its two, autonomous regions has shifted tangibly in recent times, and Macau can only expect continued interference from Beijing moving forward. The Communist Party does not take lightly to matters that it believes compromises, in the words of one its many media outlets, its own ‘public order’.

In fairness, Chau’s apparent misdemeanours were relatively sizeable in scope. Heading up an organization which included 199 shareholders, 12,000 agents and 80,000 gambling members, is hardly a good look for one of the region’s highest profile commercial leaders. Furthermore, Chau’s endeavours perhaps only represent the tip of the peak. There has been a whole raft of allegations levied at Macau’s gaming personnel, from corrupt junket middle-men to extensive money laundering practices. Between January and September 2021, arrests linked to irregular gambling activity rose 14% versus

the same period the previous year. China’s intrusion, albeit slightly heavy handed, is perhaps entirely necessarily.

However, this unique little territory is no stranger to drama. Formerly a Portuguese strategic outpost during the days of rampant colonialism, before being handed to a Communist superpower hellbent on economic supremacy, Macau hasn’t exactly had an uneventful history. It’s latest testing chapter will most hopefully be navigated with the same gusto as its previous ones.

Although the obstacles continue to mount up, there’s a long road ahead before anyone could feel legitimately concerned about the future strength of its gaming empire. And, moreover, its powerhouse neighbour may have helped to facilitate a movement towards tangible, positive change. Indeed, something which could serve to arrest the evident decline in its financial and moral performance. However, a hopeful turning of the tide is perhaps helped more by timing than Chinese intervention.

True, the elapsing of its current licensing template may just be the key recovery driver for Macau’s most important sector. In January, the authorities announced that its new gaming legislation would be materially different to the current one in-play. Under close watch from their Chinese superiors, Macau’s executive council have produced a bill that promises to systemically change the way gaming operators’ function, and establish a culture of social responsibility and respect for legal compliance.

Governmental officials hope it will pre-empt another chapter of economic prosperity, a throwback perhaps to the heydays of the early 2000’s. Stuck in a never-ending cycle of monopoly and monotony, the authorities lifted Hong Kong billionaire Stanley Cho’s hegemony over Macau’s casinos in 2002. By liberalising the marketplace, and inviting three (closely followed by six) ambitious new operators, the local government had pre-empted a revolution in its homeland’s gaming space. Revenue rocketed, share prices escalated, and a rich reputation began to cultivate. Its bourgeoning status as one of the planet’s elite gambling locations attracted the world’s wealthiest to its condensed playground of casinos. Come 2007, the coastal territory had superseded Las Vegas as the biggest gaming handler on earth.

This time, they look to address a different menace to internal prosperity. Ironically, the causation of this new threat is rooted in the very approach that led to Macau’s millions. An open, relaxed, and less monitored environment can facilitate businesses to expand at a rapid rate of knots, capitalizing on new revenue streams and dynamic opportunities. But it also can hasten undesirable behaviours and conduct. Macau’s gaming landscape has suffered acutely from this lack of regulation and constraint, creating vulnerability in its defence against financial profiteering, and compromising its chances of continuing market growth. Ultimately, it’s a system which

which is too open for corruption, and too tempting to exploit.

Crucially however, the new bill may well serve to eradicate its unwanted criminal element, and once again return the industry to more bountiful economic conditions. By promoting tighter regulation, routine state inspections, and a reigning in of operators’ power and influence, analysts are more confident than ever about the likelihood of full recovery. A sentiment seemingly shared by investors. In the wake of publishing a draft of the bill, outlining the key parameters of its functionality and scope of authority, share prices amongst Macau’s six operators received a meteoric bump. On the Monday following the authority’s release of its provisional plan, shares in these businesses rose a colossal $8billion, a 15% hike in fortunes. This has admittedly drifted slightly in recent weeks, but the general message is clear. Genuine hope exists that the potential legislation will significantly improve the look and feel of a marketplace badly in need of some TLC.

If successfully pushed through, the laws will directly tackle a range of lingering headaches. Macau’s junket ‘middle-men’, endorsed by their parent casino’s and seemingly untethered to control or regulation, will be significantly reigned in. Dedicated VIP rooms for such operations will disappear, and questionable ‘revenue-sharing’ deals between punter and promoter are set to be eradicated. Furthermore, even though junket licenses will remain in operation, a significant curtailment on their volume and proliferation will be introduced. Junkets will no longer be able to facilitate multiple clients across a number of casino establishments, now restricted to conduct their operations in one concessionaire. This is a blatant attempt to saturate their influence, and a clear suggestion of where officials feel a sizeable proportion of the problems may lie. A landmark, 30% limit on shares publicly listed by those in possession of operator licenses will mitigate against the risk of corruption. Furthermore, business transactions of high-value will be appropriately scrutinized by the authorities. But the tighter controls don’t stop there.

Macau’s gambling firms will now also be subjected to intense, periodical reviews. Every three years, casinos will be compelled to provide evidence of commercial activity, and thus undergo a thorough financial inspection. Conducted by the city’s gaming regulator, the companies’ ‘contractual compliance in general’ will be rigorously explored. For those in contravention, lethal punishment lies in wait. The bill’s provisional content declares that the local government has the right to terminate the casino’s license on discovering illicit conduct, a move which perhaps best illustrates their new, ruthless intent.

However, the acquisition of a license in the first place is not cut and dried for the autonomous region’s biggest players. As part of the legislation, a full, allinclusive re-tendering process will be put in place, therefore permitting both current and new organizations the opportunity to bid. And, although license quantity will remain static at six, the contract-term has been diminished from twenty to ten years. Authorities hope that this will maintain freshness in the industry, and perhaps mitigate against the chances of an emergent force ruling the roost for a prolonged period of time. Gaming tables and slot machine numbers in the facilities of the successful applicants will also tumble.

11th APRIL 2022 Savoy Hotel London

The government also seeks to enthuse a greater focus on social responsibility. Indeed, all prospective licensees will be expected to draw up a detailed plan, outlining their future commitments to local communities, and how they can help address the steep incline in problem gambling and addiction. Furthermore, gaming firms will be obligated to propel local small and medium-sized enterprises forward through investment and stewardship. There is also a requirement to back projects of ‘public interest,’ and financially support study efforts in positive areas, such as science exploration or environmental research.

The immediate reaction signposts a changing mood amongst Macau’s most powerful businesses. Many of the city’s gaming operators have already started to venture further down the avenue of corporate responsibility, and some have even indulged in non-gaming pursuits. They’ve been eager to go on record to support the prospective bill, and have encouraged its swift installation into law. It almost feels like some of the perpetrators are calling out to be controlled, not able to trust their own activity in an industry laden with temptation. Time will tell whether these rallying calls are sincere, but it certainly seems, for the short-term at least, that these suitors are on board.

As are, in fairness, all key stakeholders. The menacing glare of its Chinese enforcer is never far from view, but its intervening input into these harsher controls at least draws the inference that they’re also fully bought into the proposals. Moreover, the central issue which has plagued the CCP in in its southern provinces is also set to be addressed. The concerning flow of funds (both legitimate and otherwise) from Macau into the mainland, is accordingly tackled within the bill’s narrative. This serves to power up original legislation launched in March 2021, which has ultimately failed in its efforts to adequately dilute unwanted crossborder money transference.

So, does this new gaming regulation stand up to scrutiny? Time will tell. Comprising a bill, registering support, and unaccountably expressing sentiment is one thing, consolidating it into practice is an entirely different concept. Moreover, the authorities are not simply targeting the introduction of more robust stipulation and control, they’re focused on triggering a colossal cultural shift. This is never easy, and is decisively harder in an environment which offers such lucrative low-hanging fruit for those who are bold, or stupid enough, to go against the grain.

However, as referenced, there are a number of green shoots. Operator reaction, share price performance and the commentary of analysts, all conspire to suggest a favourable outcome may well be in reach. The backing of the central Beijing legislature should also not be under-estimated. Declining global corona virus rates only enhance the likelihood of this theory coming to fruition yet further.

There is considerable work to be done to get Macau close to the pre-2014 economic heights it enjoyed in the industry’s finest hour. Indeed, uncontrollable marketplace forces may also serve to considerably de-rail this cause. However, restoration to calmer waters is certainly an attainable target, and these measures feel the right way to go about realising this aim. A return to complete financial stability is perhaps not currently an odds-on favourite, but its odds in the market are shortening all the time…….

NHS To Stop Funding From Gambling Sector Macau Casino Boss Arrested

According to a report in the Sunday Times Newspaper the National Health Service (NHS) in the UK is to cut funding from gambling companies for its addiction clinics in a push to be independent in what Professor Henrietta Bowden-Jones, director of the National Problem Gambling Clinic says “from the polluter, from industry.”

It is understood the NHS will stop receiving funding from Gamble Aware which last year raised £1.2 million from the organisation which is funded in large by the gambling industry at the start of this financial year. However the newspaper said that the money raised by Gamble Aware is less than half the funds needed to run the addiction clinics in Manchester, Leeds and London.

The move could possibly indicate that the current UK government gambling review may well force a statutory levy on gambling firms to pay for treatment and addiction issues of 1% of profits.

Professor Henrietta Bowden-Jones, director of the National Problem Gambling Clinic said: “We as NHS clinicians have been asking for a very long time for independence of funding from industry. And we are very hopeful that this is an imminent announcement to come.”

Zoë Osmond, chief executive of GambleAware, said the group had long called for a mandatory levy to ensure “consistency and transparency”. The CEO of Macau casino operator Macau Legend Development has been arrested over alleged money laundering and illegal gambling according to local reports.

Chan Weng Lin is the majority shareholder and CEO of the operator that runs the Landmark Macau, Babylon Casino and Legend Palace Casino in Macau.

The arrest came on Sunday and it is believed there is a possible connection to Alvin Chau the Suncity boss who was arrested on the same charges in November. The Macau Legend company also runs junkets from Hong Kong and China into Macau.

Macau Legend Development said in statement shortly after the arrest: “The Board is of the view that as the Group is operated by a team of management personnel and the above incident relates to the personal affairs of Mr Chan and not related to the Group,” the statement went on to say, “The Board does not expect the above incident to have a material adverse impact on the daily operations of the Group.”

However shares in the company dropped by 30% in early trading on Monday following the arrest of its CEO.

According to latest reports Chan Weng Lin has now stepped down from his role with the company folowing his arrest.

player affordability

beyond reasonable doubt

By Christina Thakor-Rankin

The discussion around player affordability is a complex and multi-layered one raising questions, not just around how to measure and assess something as sensitive and intrusive as an individual’s income and personal circumstances, but also questions about ‘nanny states’ (or in this case regulators) versus a customer’s individual freedom of choice and right to spend their money how and as they chose to.

Player affordability is not a new idea, the concept of the regulator taking a firm hand in ensuring customer spend remains manageable being one of the primary principles behind the Norwegian model of a national betting card. And irrespective of regulatory requirements, the link between problem gambling and unchecked spending has been in the industry’s collective consciousness for decades, with almost every regulated jurisdiction in the world requiring customers to be able to set some kind of financial limit. So why the sudden step change?

Firstly, as an industry, we are far better informed about problem gambling and the path from player to problem gambler than ever before. We know that whilst not every player’s journey starts with money - some start playing for entertainment, escapism, social interaction or as a result even of medication and that most know that they are more likely to lose than win - at some point along the journey for a small minority something shifts and when this happens money or spend almost always becomes a consideration. Why? Because like any other addiction the more reliant you become on something, the more of it you have to do to get the same hit. And gambling is not free. Like it or not, escalating spend is a key indicator or problematic play.

Secondly, as a society, we are far more aware of the problem gambling. Through the courage of those who have been impacted publicly speaking out and sharing their experiences, including the way in which they were encouraged and exploited by gambling firms, we have been given an insight into the darker side of the industry. This has resulted in a shift in public opinion and increase in the number of voices demanding action from politicians and regulators.

Thirdly, the pandemic; Coinciding as it did with the growing awareness around problem gambling, concerns around people turning to online gambling either as a source of entertainment or means of boosting failing finances during lockdown,

forced regulators around the world to step in and be seen to be doing something. Belgium, Sweden and South Africa were the first out of the blocks with compulsory deposit limits, and a complete ban on some forms of gambling, whilst other regulators such as the Gambling Commission of Great Britain took a less strident approach issuing guidelines requiring operators to take a more proactive approach in ensuring their customers were spending within their limits.

As we start to come out the other side, operator hopes of regulators easing off on some of the COVID restrictions appear to have been dashed. In fact, it has gone the other way. Last year Belgium regulators decided not only to keep the player deposit limit in play but to reduce it even further from €500 to €200 per week. Sweden looks set to follow suit with recent proposals to reduce weekly player deposit limits from SEK 5,000 to SEK 4,000 (just under €400), this on the back of a newly regulated German market which launched from the get-go with a mandatory global monthly deposit limit of €1000.00.

Thus far the Gambling Commission in the UK has refrained from a prescriptive limit, instead opting to issue guidance to operators that requires them to base their own internal limits in consideration of government data around average national disposable and discretionary income which currently suggests monthly limits ranging anywhere between £200 to £750, however the actions of regulators in Europe have raised speculation around whether the UK’s new Gambling Act should or would also include mandatory player deposit limits.

Probably it should not.

Irrespective of whether the limit is set by the regulator or the operator, all of them are based upon national averages. And therein lies the problem. An ‘average’ mixes up those who earn a lot with those who earn less and spits out a number that artificially boosts the income of lower earners and dilutes the number associated with

those at the upper end. As a result, whilst the deposit limit set based on nation averages is probably appropriate for those in the middle, it arguably fails to protect the two most vulnerable groups it is designed to protect - those earning the least and those earning the most.

For those earning the least - a deposit limit based upon national averages will already be too high and therefore offer no protection at all. For those earning the most a deposit limit based upon a national average will be too low - pushing them to the black market and a potential gambling problem whose impact is not financial but something else.

The only way to avoid either of the scenarios above and ensure that each customer is properly protected either from operator exploitation or themselves, is to means test every customer individually, and set limits that are appropriate to them. This is the approach currently advocated by the UK regulator, whereby operators are required to conduct due diligence checks to verify income and affordability early on in the relationship.

Where the current approach falls down is that this is on a per operator basis, which means that a customer who can only afford to deposit (and lose) say £100 per week, can do this repeatedly across an unlimited number of operators at any given time. Add to this the fact that different operators have different thresholds as to how much a customer can deposit (and lose) before an ‘affordability’ check kicks in - it is probably fair to say that we have already failed the most vulnerable before we even start.

Consequently, the safest approach from a player protection perspective would be the UK’s means testing approach combined with Germany’s global ‘across all operators’ principles, which seems to be the direction in which the UK may be travelling with the Gambling Commission’s comments around a single customer view.

Whilst some in the industry have expressed concern at such an approach being anail in the metaphorical industry coffin through a combination of additional operating costs and pushing players to the black market, it could if managed sensibly, do exactly the opposite.

In theory, not only should a single customer view system reduce operating costs by reducing the number of checks each operator has to do, it should also, (in theory at least) allow for more accurate means testing of each individual player. This means more appropriate and therefore more effective limits for each individual player.

Where it could result in additional costs is if the development of the system is poorly managed and operators end up having to pay the price for poorly architected technology and inefficient data processes. In the age of technology however this should be relatively easy to contain.

If it is, then the Gambling Commission’s approach to a Single Customer View could set the standard for regulators the world over as the first system designed to find a balance between customer protection and freedom of choice- keeping those at the lower end from overspending (something no one wants) and those at the upper end away from the black market (something everyone wants).

A by-product of removing ‘money’ would be to allow the industry to shed its pariah image and repackage itself for a new generation of players looking to engage with organizations that support their values of social responsibility and for whom the word ‘win’ means experience and engagement - not money.

Done properly Single Customer View could end up being a win-win for everyone.

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© 2021 IGT. Except where ownership is otherwise identified, the trademarks used herein are owned by IGT or its affiliates, may not be used without permission, and where indicated with a ®, are registered in the U.S. Patent and Trademark Office. Artwork, descriptions, game play, photographs, videos, and other product details depicted are subject to change. IGT is committed to socially responsible gaming. Our business solutions empower customers to choose parameters and practices that become the foundation of their Responsible Gaming programs.

VR Investment Soars But Is It For Online Gambling?

It’s been around for decades but could 2022 be the year that sees Virtual Reality take centre stage in the Worlds of gaming, online gambling and personal entertainment?

According to latest investment figures, 2021 saw the biggest investment in virtual reality technology up by more than 72% compared to the year before and seems to be growing again this year already.

Some of that is down to the two years of the COVID pandemic encouraging companies to look at new ways to entertain those locked inside due to government lockdowns, however more recently Facebook has hired thousands of staff to push forward with their own metaverse and with technology improving headsets and safety could 2022 be the year that VR really comes into itself in the online gambling world?

It has been there already with one or two companies working in VR but never has it reached anywhere near mass market, the issue with VR and online gambling is clear the regular gambler is not interested in VR they want the best offers and the fastest results without too many gimmicks. launched trying to attract gamers to the gambling world with avatars and social style poker, that eventually did not work, it attracted causal gamblers but ultimately they do not spend money and so the business folded.

Virtual Reality does have a space in society, gaming and the wider business environment but with gambling and remote gambling taking place on the smart phone will VR make a splash into that world, it is doubtful but VR is going to be a major leisure and business activity just not likely to be part of the gambling industry.