InfinityGaming www.gaming-awards.com | ISSUE JULY2015
THE ONLY MAGAZINE YOU NEED
GAVIN ISAACS
The man of the moment
BONANZA SPECIAL EDITION
BURSTING WITH INTERVIEWS & ARTICLES
GAMING + ARTICLES + business + global + ONLINE + NEWS+ APPS + AWARDS + etc
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46 WOUTER SLEIJFFERS CEO of Fnatic
08 GAVIN ISAACS President & CEO of Scientific Games
PAUL SWADDLE Our new expert on all things App
Opinion Disclaimer: The views and opinions expressed in all external articles are those of the authors and do not necessarily reflect the official policy or position of The Infinity Gaming Magazine Any content provided by our feature writers or authors are of their opinion, and are not intended to malign any religion, ethic group, club, organization, company, individual or anyone or anything.
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4 EDITOR NOTES Lana welcomes you to the June edition of Infinity Gaming Magazine.
6 OUR WRITERS Meet our feature writers, the superb writers on our rosta.
08 GAVIN ISAACS The man of the moment
12 6TH WIG AWARDS
12
what a night to remember
34 IS IT NECESSARY? Professor Nelson Rose with another superb
6TH WOMEN IN GAMING All the winners and photos from the evening
article on gaming law.
38 CASINO LEGEND Kirk Kerkorian dies age 98
24
WAHT’S NEXT FOR PLAYTECH? Christina Thakor-Rankin superb article on the future for the software giant.
35 THE APP MAN Paul Swaddle joins the team
46 A FNATIC Wouter Sleijffers interview
51 NEWS & MORE NEWS from the gaming industry
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A note from the editor CONTACT US Clever Duck Media Centrix@Keys Keys Park Road Staffordshire WS12 2HA UK Tel: +44(0)1543 478 889 PRODUCTION Clever Duck Media Centrix@Keys Keys Park Road Staffordshire WS12 2HA UK
Get ready it’s nearly the summer holidays & relaxation
PUBLISHING Infinity Gaming Magazine is operated by © Clever Duck Media Ltd ®
Lana Thompson - Editor
Welcome to the July edition of the Infinity Gaming Magazine and we survived another WIG Awards, just!
Company Reg. No. 687 1018 (Registered in England) V.A.T reg. no 972 6372 91
Sponsorship Opportunities Colin@cleverduckmedia.com
What a night the 5th June was in Lon-
new CEO of Fnatic tells us about this
don at the stunning Jumeirah Hotel in
amazing company and indeed industry
Knightsbridge, firstly congratulations to
he works in.
Business Partnerships Svetlana@gaming-awards.com
women and men that came and sup-
We have a new feature writer, Paul
ported them, you are all winners.
Swaddle the CEO of Pocket App will up-
Marketing & Advertising claire@cleverduckmedia.com
all the winners and also to the superb
date and enlighten us on all this APP. Our biggest ever attedance and the most inspiring of ladies that attended. A
Plus articles this month from Tina Tha-
big thank you to our sponsors that make
kor-Rankin, and the lovely Professor
it all possible, thank you Playtech and
Nelson Rose. Of course all the latest
Play’n Go.
news, views and updates.
Have to say it was the latest night of all when we finally toddled of to sleep at 3.30am, thank you for that Jennifer
Enjoy the magazine.
Bowman (you know who you are)! So, “To Infinity and Beyond!” OK, we have an amazing bonanza of a magazine for you this month, the man
Regards,
with the golden tough, Gavin Isaacs comes and updates us on life at Scien-
Lana
tific Games and so much more in that interview. Also Wouter Sleijffers the
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the Editor
Editorial Content & PR media@cleverduckmedia.com
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Infinity Gaming Magazine
A magazine is only as good as the content inside and with some of the leading specialists within th prducts, technology and current affairs with the sector the Infinity Gaming Magazine is delighted t
Paul Swaddle A self-confessed ‘gadget geek, Paul Swaddle has been working at the leading edge of mobile technology for the past 15 years. He co-founded Pocket App in 2011 to bring the creative and technical development elements of mobile technology together under one roof. This unique approach continues to differentiate Pocket App in today’s increasingly competitive landscape.
Working across a range of communications disciplines such as acquisition, loyalty, retention and customer development, Paul understands the importance of a strategic and coordinated marketing approach, particularly between on and off-line communications. In the past decade he has enabled brands as diverse as Kellogg’s Fruit Winders, Barclays and Loaded magazine to get the best out of mobile.
With over 16 years’ industry experience building high-performance teams and successful businesses around the world, John Edmunds is passionate about enabling people and technology deliver superior business results. As Chief Marketing Officer at FutureLogic, John was at the heart of FutureLogic’s digital transformation from hardware supplier to software solutions provider and subsequent acquisition by JCM Global. As an experienced thought-leader, strategist and writer, John is a regular contributor
to numerous gaming publications and has been guest speaker on technology discussion panels and industry forums in Buenos Aires, Las Vegas, London and Toronto. John works with technology companies in the US and UK helping deliver superior business results and connecting start-ups and lower middle-market firms with private equity development and growth capital. John can be reached on +1.818.398.8028 or johnedmunds1975@gmail.com.
JJ Woods Director of Operations founded and set up Atlantic Casino Consultants which consults Worldwide, He is also an expert on the Irish Gaming Market and the impending Casino Legislation. He was born in Ireland but left in the Seventies to live in London and for a career in Banking that lasted nearly four years after which he joined the Casino Industry in London where he trained and has over the last 30 years been involved
in the setting up, design, management, and opening of Casinos Worldwide.
John Edmunds
JJ Woods
general manager and CEO
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JJ is also an Author on Gaming and has written for several magazines, spoken at gaming conferences was selected as a Judge for the World Gaming Industry awards and has appeared on TV and Radio discussing Gaming issues. He can be contacted through the website... www. atlanticcasinoconsultants.com
JULY 2015
Contributing Writers
he gaming industry. With specialised articles covering customer service, the gaming law, new to showcase our superb line-up of contributing writers.
Christina Thakor-Rankin Christina is Principal Consultant at 1710 Gaming Ltd, a specialist betting and gaming consultancy, delivering a range of services including licensing and compliance (incl. regulation, money laundering and social responsibility), business start-up, training and strategic re-engineering, project management, research, business analysis and development, to start-ups and established multi-national
operators and providers, gambling regulators, law enforcement and government agencies, media, and specialist interest groups and associations within the sector, in both established and emerging markets across the world.
Prof. Rose is recognized as one of the world’s leading experts on gambling law, and is a consultant and expert witness for governments, industry and players. His latest books, INTERNET GAMING LAW (1st and 2nd editions), BLACKJACK AND THE LAW, GAMING LAW: CASES AND MATERIALS and GAMING LAW IN A NUTSHELL are available through his website, www.GAMBLINGANDTHELAW.com.
#191 © Copyright 2013, I. Nelson Rose, Encino, California. All rights reserved worldwide. Gambling and the Law® is a registered trademark of Professor I. Nelson Rose, www.GamblingAndTheLaw.com.
www.1710gaming.com
Professor I. Nelson Rose
Would you like to feature here? Infinity Gaming Magazine is always looking for new feature writers, if you have something to say and feel the global gaming industry would be interested then drop us a line and we can explain the benefits of working with a global reaching industry publication.
Fore more details on becoming a feature writer contact Paul Jordan our Editor at madia@cleverduckmedia.com
general manager and CEO
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Interview with Gavin Isaacs President and Chief Executive Officer at Scientific Games Corporation Colin Thompson sits down with industry legand Gavin Isaacs about what has been happening since their last meeting together a few years ago.
Gavin, many thanks for talking to us today, it has been a while since we caught up with you and much has happened in that time. Firstly can you tell us how the new role is going with Scientific Games?
highlight of my career â” great people,
Although it has only been seven months
innovative products, and so much con-
since we finalized our acquisition of
vergence between the lottery, gaming,
Bally Technologies, the integration is
and interactive facets of our business. I
proceeding at a good pace and the
love being able to meet with a customer
teams are coming together quickly.
and offer such a broad suite of solutions
Bally Technologies, with its industry-
for their business – products that offer
leading Systems business and robust
Colin, thank you for checking in with
a great return on investment and help
Shuffle Master table products suite, has
me; I appreciate it. My role at Scientific
drive revenue and operating efficiencies.
really rounded out the Scientific Games
Games is going very well. My days have been a whirlwind of meetings with our customers and team members around the world as well as attending key conferences and industry events. Bringing this company together is both the biggest challenge and at the same time the
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portfolio, making us the only company
You have been in the role now for just over a year, which was shortly followed by the acquisition of Bally Technologies. How has the merger gone?
in the industry that can truly provide end-to-end solutions for casinos.
In your opinion, has it been a success?
JULY 2015
Going forward, I think you’ll continue to see more mergers in our industry but probably not at the pace we saw in 2013 and 2014.”
GAVIN ISSACS The industry legend that is President & CEO of Scientific Games Corporation
IYes, the merger with Bally has been a success, and we are still in the early stages of being able to leverage the strengths of all our great product brands for the gaming industry – Bally, Barcrest, Shuffle Master, and WMS. Cus-
For readers that have never been involved in multi-company ownership, how challenging is it for a parent company like Scientific Games to run Bally, WMS, SHFL & Barcrest?
tomers have been very supportive, and
most rewarding part of any integration. Teamwork, collaboration, and sharing in each other’s successes – one mission, one team, one Scientific Games.
Not just at Scientific Games, but the industry has seen some huge acquisitions over the last year; do you see this happening more in 2015 and 2016?
our outstanding team is the best in the
We run one company – Scientific
business. My senior leadership team is
Games. Bally, Barcrest, Shuffle Master,
comprised of proven executives from
and WMS are all strong product brands
nearly all the companies we are bring-
within our organization that have great
ing together, all with proven track re-
tracks records of delivering results for
: You are right, Colin, there has definitely
cords of success. Most of all, we all
our customers. It is exciting to see our
been at least two quite large combina-
share the same mission: to empower
teams from around the world starting
tions and some smaller ones as well.
our customers by creating the world’s
to build strong relationships with each
Going forward, I think you’ll continue
best gaming and lottery experiences.
other and really work together; that is
to see more mergers in our industry
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Gavin Isaacs
THE MAN BEHIND
Special Interview
Scientific Games who is leading the company into a new era in the gaming sector
but probably not at the pace we saw in
who compete with us and the other
2013 and 2014. Companies will come
larger companies. Our focus on innova-
together when it makes good strategic
tion has not waivered and in fact, has
sense and when they can demonstrate a
only increased as we bring all the great
clear value to all of their stakeholders. I
legacy product brands together and
think you’ll also continue to see smaller,
start capitalizing on the convergence we
tuck-in technology acquisitions as com-
see in the gaming and lottery industries.
panies seek to round out their product
There are even greater opportunities to
Having just returned from G2E Asia and
portfolio so they can offer more fea-
leverage our talent and innovation, and
spending a week or so in Macau, it is ev-
tures, products, and solutions through
we are doing it.
ident that the Macau market is adapting
their core business.
have access to Macau.
You have a huge wealth of experience and knowledge in the gaming industry. How do you see Macau fairing in the coming few years?
to and managing their challenges. There are six new casino projects underway,
Some observers say the gaming sector is creating maybe three or four super companies, with the rest fighting huge corporations. Is that true and is it a good thing for the sector?
Macau is struggling with now 12 months of declining revenues. In general, how will this affect suppliers and manufacturers?
and they are doing a bit of reinventing with more of a focus on the mass market player and integrated, Las Vegas-style resorts. While short-term prospects are hard to predict, I feel confident that Macau will continue to do well in the long
Suppliers and manufacturers are im-
run due to savvy casino operators and
I don’t see that, Colin. There are plenty
pacted anytime a major market experi-
the growth of China’s middle class.
of smaller companies in our industry
ences declining revenue. We feel con-
that offer compelling products and
fident about Macau’s long-term future
compete with Scientific Games and
and will do everything we can to sup-
the other larger companies for market
port them and providing entertaining,
share. Competition is good for us, our
high-performing content that engages
customers, and the industry as a whole
their patrons.
– we want it.
Competition is said to drive innovation and price. What would you say to critics that say the industry will suffer because of the recent spate of acquisitions and mergers?
Is Macau too reliant on gaming, with 80% of its revenues derived from there and should it look at Las Vegas more to diversify?
Australia is creating some excitement with new casino resorts in both Sydney and elsewhere to attract VIP gamblers. Do you think those resorts will work in attracting primarily Asian gamblers? The gaming industry in Australia, one of the world’s most mature gaming market, is stable. However, it is exciting to see new integrated casino resorts com-
All indications are that Macau is defi-
ing into the market. Asian tourism has
nitely looking at the Las Vegas-style
picked up in Australia and there is no
integrated casino resort as a way to at-
doubt that these new casino resorts will
As I noted in my response to your ear-
tract more patrons. However, the Chi-
be a draw for Asian players due to their
lier question, we feel that despite some
nese population in general really enjoys
close proximity. But just as the casino
of the supplier consolidation, there are
the gaming experience and at this stage
resorts elsewhere around the world
still plenty of companies in our space
only limited parts of the population
attract locals, tourists, and people of
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How much travel and meetings does a CEO do in an average week? I usually travel three weeks a month, Colin. I try to visit each of our major locations in the United States quite often (Las Vegas, Nev.; Chicago, Ill.; and Alpharetta, Ga.) and check in with our teams there. In addition, I like to visit customers with our sales teams, and there are so many conferences and trade shows in both the lottery and every ethnicity, I expect the same will happen in Australia.
and would online gambling help improves operator revenues nationally?
gaming industry that keep my calendar quite full. When I’m in one of our offices, I usually have back-to-back meetings all day and very often have dinner
Back to Las Vegas where Scientific Games has based its global headquarters; there has been some signs of the industry improving there in recent months. Do you see that continuing or will the business need to contract to survive?
Of course there is more competition
meetings and events in the evening. It is
from all different sorts of entertain-
a full schedule, but when you love what
ment, but we offer products that are
you do it doesn’t feel like work.
unlike anything else. People might say that I’m just optimistic by nature, but there truly are many opportunities for our industry to grow. Gaming expansion continues around the world including the United States, Europe, Asia-Pacific
Expanding on that question, Gavin, could you give us and our readers an insight into a normal day of a CEO. What time do you get up, make the office etc. and what time do you manage to get home on any normal day?
There is no doubt that the economy in
and Latin America. And we are seeing
Las Vegas is improving. Unemployment
convergence – lottery players playing
is down, the population is growing, and
slot machines; slot players playing draw
even the real estate market is recover-
lottery games; social slot players visit-
Whether I’m traveling or at my home
ing. Casino operators in Las Vegas are
ing brick-and-mortar casinos. There’s
base in Las Vegas, I always start the
investing in their properties. And just
no better company to capitalize on this
day with a good workout. I either swim
last month, the Genting Group broke
convergence than Scientific Games, and
or run on the treadmill. That motivates
ground on the Chinese-themed Resorts
we’ll use it to create even better, more
me for the day ahead, which usually
World Las Vegas – the first Las Vegas
personalized experiences for players.
encompasses either air travel or a full
Strip development in nearly a decade.
calendar of meetings or driving with
This casino resort will create thousands
and Latin America. And we are seeing
our sales team visiting customers. I try
of construction jobs while it is being
convergence – lottery players playing
and multi-task and find myself doing a
built and employ about 13,000 people.
slot machines; slot players playing draw
lot of business meetings during lunch
I’m very optimistic about Las Vegas and
lottery games; social slot players visit-
and dinner as well, but when I’m home, I
we are thrilled to call it our global cor-
ing brick-and-mortar casinos. There’s
make it a regular practice to spend time
porate headquarters.
no better company to capitalize on this
with my wife Donna and daughter So-
convergence than Scientific Games, and
phie (my son Thomas is away at univer-
we’ll use it to create even better, more
sity). Family is the key to keeping things
personalized experiences for players.
in perspective.
Generally over the whole of North America, many states worry of declining revenues for the gambling tax incomes. Is it that there is much more competition out there now
Every time I speak to a CEO they are always just stepping off a flight.
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WOMEN IN GAMING AWARDS WINNERS 201 01
04
07
02
05
08
03
06
09
01
Industry Pride of the Year
04
Alicia Gleeson
Affiliate Team of the Year
07
Leena Raty & Unibet Team
Shahnaz Aziz
Crown Melbourne
02
03
Outstanding Contribution
Excellence in Customer Service Rational Group
05
B2B Excellence Award
08
Hidden Talent
Teresa Tunstall & Stella Dalton
Nadine Thys
Fayan Pourisa
GamCare
Playtech
Net Ent
Affiliate Manager of the Year
06
Employee of the Year
09
Industry Achiever of the Year
Caroline Klytseroff
Ana Gomez Arenas
Sylvia Dietz
Leo Vegas
PokerStars
IGT
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15 - THE AMAZING WOMEN OF THE YEAR 10
13
16
11
14
16
Team of the Year Lyn Salmon & Rank Team
12
10
11
12
15
Innovator of the Year
13
Leader of the Year (land based)
Therese Carlzon
Marieanne Carmody Weir
Mr Green
Aspers Group
Inspiration of the Year
14
Marketing Excellence Award
Mel Camilleri (right)
Emma Loveday
William Hill
Sun Bingo
Leader of the Year (iGaming)
15
Star of the Future
Ebba Arnred
Lydia Barbara
Play’n Go
Microgaming
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MR GREEN Mr Green ladies enjoying the drinks reception
SYLVIA DIETZ Along with the IGT Team arrive for the awards drinks reception
THE AWARDS Everyone had their eye on the awards but only the select few were lucky to receive this year.
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MR GREEN Those Mr Green ladies just want to have fun!
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PICTURE PERFECT The Leo Vegas girls with a perfect pose
TO A GOOD EVENING The Mr Green table and Therese Carlzon clebrate even before her win!
RANK UNITED Richard Wade who presented the Outstanding Contribution Award to GamCare
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SUNSHINE The gents supporting the Sun Bingo ladies at the 6th WIG Awards, well done guys.
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WILLIAM HILL
UNIBET
Mel Camilleri and the rest of the William Hill ladies looking lovely
Brit Boeskov (left) and the superb Unibet ladies table. (Far right) Lydia barbara from Microgaming
PLAY’N GO What would the awards be without our superb sponsors Play’n Go
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RANKING HIGH Long time supporters of the WIG the Rank Group team.
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NADINE WINS! Nadine Thys cannot believe she has just been announced as the winner.
LEENA Leena Raty does the winners walk to collect Affiliate Team of the Year award for Unibet.
OUTSTANDING Teresa Tunstall & Stella Dalton Collect the Outstanding Contribution to Gaming Award.
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We are the Champions!
The line-up of winners from the 6th Annual Women in Gaming Awards
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What’s next for Playtech? By Christina Thakor-Rankin
1999
Never shy of wearing their ambition on
whilst mobile and multi-channel were at
was the year that
their sleeve, the last decade and a half has
that time more of a toe in the water of fu-
Barbie celebrated her 40th birthday, the
seen the Playtech juggernaut quite literally
ture opportunities than a triple Salchow
EU launched the Euro currency, and Putin
hoover up the opposition, exploit techno-
into the sea of consumer demand.
took over from Yeltsin in Russia. It was also
logical and market opportunities, and on
the year that a group of maverick software
occasion leverage the reputational and
In 2006, Playtech took the very savvy step
and technology entrepreneurs seeking to
revenue benefits of high profile strategic
of becoming a listed company. Aside of
make their mark in the brave new world of
partnerships, via their aggressive catch-all
the reputational and profile benefits, AIM
internet gambling set up a new business
policy of buy, build - and where necessary
listing allows a business to raise cash, and
in Tartu, Estonia. That business was called
‘borrow’!
gave them the springboard they need to
Playtech.
help catapult them from modest newcomHaving spent the early years identifying a
er with ideas above their station, to major
15 years down the line, and the rest is
gap in the market and developing what is
market player.
history. Like them or loathe them, the
now quite possibly the largest poker net-
‘marmite’ of the gambling sector Playtech
work in the world, the success of their oth-
Firstly, there was the deal with William
is now one of, if not the biggest supplier of
er product offerings such as bingo and ca-
Hill, which despite being one of the most
online gaming software in the world.
sino was bound to be restricted in the face
turbulent and entertaining gambling mar-
of long-established and trusted providers,
riages in history, was hugely success or both parties, and resulted in a not insignificant ‘divorce settlement’ for Playtech. Secondly, there was a new approach to the problem of ‘how to beat the competition’. Development takes time, and in this sector, time and timing quite literally is money. Miss the window of opportunity and you’re out. Trying to gain a foothold in a closed me-too market-place of established suppliers with long-term agreements would always be a huge and long-term challenge. The problem was neatly solved with a pragmatic approach of ‘if you can’t beat them – just buy them’. 2010 saw Playtech embark on one of the
THE FUTURE
industry’s most ambitious spending sprees with Virtue Fusion the UK’s most successful bingo network, GTS the games aggregator,
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Who can predict where the technology firm will go next,
and Ash Gaming, one of the most innova-
it is clear they have more ambition than just the online
tive games developers around at the time
gambling sector.
all becoming part of the Playtech family.
JULY 2015
2010 saw Playtech embark on one of the industry’s most ambitious spending sprees
They were soon joined by Mobenga, Ge-
platforms (from player management
own technology and products to its sole
neity and a host of complimentary bolt-
and payments to affiliate and CRM) to
advantage by moving into the B2C op-
on applications such as Poker Strategy.
marketing, fraud and customer support
erator space. Whilst their B2C offering
services. Again a full house, almost.
has been around for a while, the chang-
Since then Playtech has continued to
es in UK legislation have coincided with
add to the portfolio which now includes:
More recently, Playtech has been driv-
a more concerted push in the B2C space
lottery, social gaming, binary, a most
ing the Omni-platform bandwagon,
with Titan and Winner across multiple
recently a forex brokerage Plus500 – a
which champions a single platform ca-
channels – almost.
positive full-house of betting and gam-
pable of distributing any product via
ing products, nearly.
any channel anywhere – the ultimate
So having pretty much achieved what
joined up customer experience.
they set out to do, is there anything left for Playtech in the gambling sector?
Alongside the products, Playtech has also been quietly developing all of the
Having firmly established itself as the
additional support services and appli-
world’s largest provider of consolidated
The most recent acquisition of Plus500,
cations needed to operate a gambling
gaming products, services and solu-
coming some two months after the deal
business. Today the portfolio is not just
tions, the next obvious step would be
in which Playtech acquired a more than
products but also various management
to practice what it preaches and use its
90% stake in Teddy Sagi’s TraderFX ,
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What’s next for Playtech? Playtech has never been slow to identify a
Concluding part at the look of the rise and rise of Playtech and what really is next for the software giant.
need in the market and capatilise on it.
quisition potentially also offers Play-
opportunity in a customer verification
tech the opportunity to move into an-
engine which covers the whole of bet-
other equally lucrative but niche market
ting and gaming across all channels as
by merging platforms and trading skills
potentially required by the 4th EU AML
- spread betting.
Directive?
In terms of supplementary products
Lastly, and perhaps the most talked
and services, Playtech has never been
is whether Playtech will, having con-
slow to identify a need in the market
quered all things online, make a play
and capitalise on it. It is only recently,
into non-remote its next strategic move
that Safecharge, a leading provider of
– whether it be betting, casino or bingo.
payments solutions, and adept at taking
They are already in the land space as a
away the pain of PCI compliance from
provider, and their public push on Om-
a CFD and binary trading platform, sug-
operators, has stopped tagging itself a
ni-channel shows they are very aware
gests that they are already turning their
member of the Playtech family.
of the opportunity, so maybe it is less
attention to other sectors.
a question of if and more one of when Safecharge addressed a regulatory is-
and how?
It could be a strategic play to diver-
sue with a solution which has far wid-
sify into new sectors which are not
er commercial value and application.
This is all speculation of course, spread-
completely incompatible with their
There is another regulatory pain-point
betting, KYC, retail, casino, bingo halls,
gambling background, and arguably a
lurking on the horizon, and one which
buying a football team (after all, why
natural complement to their binary of-
also highlights a gap in the Playtech
sponsor when you can buy and name
fering as suggested by Mr Weizer, that
arsenal of additional support services -
the stadium after yourself?) - but I for
some of these traders could be enticed
customer KYC and identity checks.
one would not be at all surprised to
to start gambling, with binary options a likely avenue of interest.
wake up one morning and find my local Given the potential ramifications, not to mention the cost of this to opera-
With a little tweaking however, the ac-
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tors, there must surely be a commercial
bookie is now called Winner.
JULY 2015
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New player in Ladbrokes takeover? Is there a new player in for UK bookmaker?
As Royal Ascot begins this week the
brokes are that a private consortium for
bookies will be hoping for a bonan-
£1.6billion or Paddy Power will show
za with William Hill alone expecting
their hand and make a formal offer some
to turnover some £30 million alone
time shortly after the Ascot meeting.
over the next five days of racing.
Insiders believe that the private con-
TIndeed there are two major racing cal-
sortium could trump Paddy Power in
endar days the bookies look forward to,
acquiring Ladbrokes with a bigger offer
The Cheltenham Festival and Royal As-
and also at the same time a solid focus
cot. This year mobile gambling will be
on strengthening its online presence. It
the enjoy the biggest increase in bet-
is not clear who is leading the consor-
ting as the platform offers punters the
tium bid but rumour has it that it is a for-
quickest opportunity to place a bet.
mer senior executive from Ladbrokes. With new Ladbrokes boss Jim Mullen’s
With the new POC tax from the UK gov-
strategy for the business to be an-
ernment and betting shops on the de-
nounced at the end of June which is
cline suffering from the huge increase
likely to focus on its digital and online
in online betting companies such as
operations, this will be the time when
Ladbrokes are hoping for a very good
an offer is most likely to be made.
week. Also the latest rumours on Lad-
INFINITY GAMING
JULY 2015
29
New Galaxy phase not as strong as hoped Galaxy
Entertainment
Group
an-
mance of the non-gaming elements
nounced at its annual general meeting
at its new properties such as its hotel
that the recently opened new phase
bookings and dining outlets.
of Galaxy Macau last month was not as strong as expected in revenues.
“Be patient, we believe the scale, facilities and services of the second phase
Chairman Lui Che Woo said to reporters
are the best,” he said. Business should
in Hong Kong that the new resort phase,
improve in July and August, compared
“is satisfactory, but not as good as what
with June which is an exam season for
we expected.” He also said that gaming
students, he added.
would be impacted even further should the no smoking rule extend to VIP Rooms.
Some good news for Galaxy was that in June so far they are the leading compa-
The new project’s performance “will be
ny of market share in Macau with 25%
better in the next one to two months,”
in gaming revenues, taking over Sands
said Galaxy Vice Chairman Francis Lui,
China that now sits at 22%.
adding he was happy with the perfor-
Australia: new checks for gambling industry employees The Victoria State government in Aus-
Jane Garrett the Minister of Consumer
tralia has implemented the “reform on
Affairs for the gambling industry, said
gambling employee policies” which is
that licensed bookmakers would have
aimed at removing convicted criminals
to undertake more stringent back-
from the gambling industry.
ground checks on employees.
By closing a current loophole in checks that were to cover backgrounds of those applying for gambling licenses the gov-
Those employed in the casino industry
ernment is hoping to remove those
already such checks done and the move
currently in employment and those ap-
is to focus on the bookmaking industry
plying for employment within the gam-
that has suffered from corruption and
bling sector. In the tougher regulation
money laundering over recent times
those with serious criminal offences
and this latest initiative is hoped to
will not be allowed employment for 10
stamp out those practices.
years within the gambling sector. Serious offences such as corruption, theft, acts of violence and fraud will all mean that anyone applying or still employed will be removed for the 10 year period.
INFINITY GAMING
30
jULY 2015
Judge asked to open report on possible ties with Sands and Triads
The Steve Jacobs case against Las Vegas Sands for wrongful dismissal that now dates back to 2010 took another twist this week when two organisations requested that a Nevada Judge unseal a private investigators report into the casino company having connections to the Asian crime lords within the Triads. Guardian News & Media and the Campaign for Accountability have filed motions to unseal the report, which was filed as evidence in the Steve Jacobs case for wrongful dismissal as CEO of Sands China. Both the international news agency and The Campaign for Accountability, which
“Mr. Adelson’s alleged close ties to il-
focuses on corporate disclosure poli-
legal and corrupt foreign practices raise
cies, say the so-called Vickers report is
very serious and credible questions, not
of public interest.
only about possible corruption in the Nevada gaming industry, but also about
Both say they want to see the report
whether those practices have financed
because they believe it might help de-
his campaign activities and whether he
termine if Las Vegas Sands CEO Sheldon
has used the anonymity of campaign
Adelson used money linked to overseas
contributions to launder illegally ob-
criminal activity for election donations
tained foreign funds,” according to the
to the Republican Party where Adelson
motion from the group filed by Las Ve-
is a huge donator.
gas attorney Allen Lichtenstein.
The nonprofit’s director, Anne Weismann, said the group’s suspicions are “based on what we know about what the
The Judge in the case Elizabeth Gonza-
report was supposed to accomplish.”
lez is expected to consider a date when
She said the report’s author, private in-
the arguments will be heard for and
vestigator Steve Vickers, specialized in
against opening the report. At present
looking into organized crime activity by
no comment has come from Las Vegas
Chinese triads.
Sands.
INFINITY GAMING
JULY 2015
31
Macau MGM boss refuses to discuss possible merger Rumours last week that MGM and Wynn Resorts were in a potential negotiation to merge has continued this week as Chief Executive of MGM in Macau Grant Bowie refused to answer questions on the possible merger. Mr Bowie told reporters in Macau: “This report was mere speculation and frankly we don’t comment on speculation. I don’t think it does us any good to continue these discussions.”
were talks of a deal between the two
speculation leading to rumours con-
gambling giants to merge.
tinuing and with the latest refusal from
Speculation over the possible merger of
Grant Bowie to discuss it further will
Wynn Resorts and MGM surfaced when
Both companies so far have not come
lead to observers to believe there may
a well-respected trader said that there
out and flatly denied the
be some truth to the deal.
Goa gambling ships to move
Parulekar said that the offshore casino vessels could not be moved to other places like Zuari, Chapora and Sal, which were shortlisted, due to severe
The Goa government is likely to shift the
constraints. The offshore casino owners
offshore casinos from Mandovi river to
had earlier agreed to shift the vessels to
Aguada bay across the city of Panaji.
new location, if the state government provided them required infrastructure.
“Government is seriously considering relocating all the four offshore casinos
The minister said the government is
to Aguada bay,” state tourism minister
mulling over the possibility of providing
Dilip Parulekar said. The state govern-
infrastructure required for operating the
ment had in its recent decision short-
offshore casinos at Aguada bay. The off-
listed four locations to move offshore
shore casinos being operated in Mando-
casino vessels from Mandovi river near
vi river has evoked strong reaction from
Panaji, where they are currently sta-
various quarters. Social activists have
tioned.
been demanding to shift the vessels away from Panaji while highlighting illeffects of casinos on the state’s culture.
INFINITY GAMING
32
jULY 2015
INFINITY GAMING
APP NEWS
JULY 2015
Watch App to control your car
W
here will it all stop or in-
roof are properly closed
deed will it not, now Volk-
and locked.
swagen, Mercedes and
Volvo have joined BMW and Porsche
Volkswagen Car-Net
in developing an App for your Apple
Finalized in the US, this
Watch that will control certain func-
app allows you to find
tions of your car.
your car and activate climate control remotely,
BMW iRemote
but also to monitor
This application is destined exclu-
autonomy status. It is
sively for BMW i3 (a 100 per cent
only compatible with cars
electric city car) and BMW i8 (a sport
already equipped with
hybrid) owners. It allows them to
the Car-Net system.
control the level of their battery, but also to check that the doors are
Mercedes MB Companion
properly locked and to regulate the
The German manufacturer has an-
temperature inside the cabin.
nounced its new app compatible with future C and S Class cars, known as
Porsche Car Connect
the “MB Companion” and very differ-
Porche’s Car Connect offers practi-
ent from those mentioned thus far.
cally the same features. Notably,
This is an app specialised in naviga-
there is access to driving statistics
tion that communicates with the
and to battery-charging status for
car’s multimedia system to guide the
hybrid vehicles, but it also allows you
driver. (The App is expected later in
to know if the doors, windows and
2015)
Volvo On Call Volvo is readying to launch a version of its On Call app compatible with the Apple Watch in order for its clients to be able to manage different controls related to their car, such as finding it or locking it, but also to preheat or cool the car, check the gas tank levels, mileage or the date of the next maintenance appointment. The app will soon be updated for compatibility with the Apple Watch.
New Gaming App firm have big plans
F
ny that is being supported by angel
the top of our minds. We are design-
investors and TEKES hope to blast
ing consumer apps with playable
on to the gaming app world.
mechanics as part of the primary
uturefly a new start-up com-
Currently the studio employs nine
input mechanism. This is a new take,
pany in Helsinki Finland the
staff, including Remedy’s head of
and something that is better shown
heart of development of Gam-
franchise development Oskari Häk-
than talked about. Fortunately we
kinen .
are well into the development of
ing Apps will be launching a new
our first instalment, so you won’t
mobile games messenger similar to WhatsApp and WeChat, but will also
“We are thrilled to be healthily
include gaming features.
backed by our investors at this
have to wait too long.”
stage, both financially and on our The new company with staff from
vision,” said Häkkinen.
the most influential gaming companies such as Remedy, EA, Sulake and
“We are on a mission to disrupt the
Microsoft will lead the new compa-
consumer app space with games on
INFINITY GAMING
33
34
jULY 2015
Is This Rule Really Necessary? #202 © Copyright 2015, I. Nelson Rose, Encino, California. All rights reserved worldwide. Gambling and the Law® is a registered trademark of Professor I. Nelson Rose, www.GamblingAndTheLaw.com.
Professor I. Nelson Rose
When hotel-casinos first opened in Atlantic City, operators found themselves wrapped up in red tape. Every time they filed a petition with the
same color felt on their gaming tables.
lation can be a lot worse than tons of
New Jersey Casino Control Commis-
Advertisements had to be pre-ap-
wasted paper and unnecessary photo-
sion, they had to deliver 17 separate
proved, and could not mention certain
copying costs. The pre-censorship of
copies. This was before email, so some
information, like the payout odds on
casino advertising infringed on impor-
poor secretaries had to physically pho-
slot machines.
tant first amendment rights for both
tocopy, collate and staple 17 separate
the operators and patrons. Players, for
packets, plus a few more for the compa-
Somebody finally asked the regulators
example, might have found it useful to
nies’ executives and lawyers.
what they did with those 17 separate
know which casinos offered the best
copies. The NJCCC looked into it, and
odds.
And hotel-casinos had to file lots of pe-
admitted that they did not know where
titions. Everything was regulated. Res-
they all went. So the 17 copies rule was
The NJCCC was not anti-gambling, ex-
taurants had to get permission from the
dropped.
cept to the extent they thought they
NJCCC if they wanted to move kitchen equipment. Casinos all had to use the
INFINITY GAMING
were supposed to be. New Jersey was The problems created by over-regu-
only the second state in the U.S. to le-
JULY 2015
Hotel resorts had to file lots of petitions, everything was regulated. Restaurants had to get permission from the NJCCC if they wanted to move kitchen equipment!
Probably the most important, and over-
say, building a parking structure for a
looked, characteristic of all regulatory
casino, simply because the Chairman’s
agencies is that they gain lives of their
daughter worked in that casino.
own, sometimes completely separated
how would you write a rule that allows a
from the real world. Rules are applied
young daughter who is a casino cashier
simply because they have always been
to live in his home, but not an older son
applied.
Businesses continued to be
who is a casino president? Unless you
But
restricted not only when those restric-
are willing to spend enormous amounts
galize casinos. Legislators had visited
tions are no longer needed, but even
of time and money holding hearings
Nevada and made it clear that they did
when the regulations directly hurt the
on each individual case, the rules have
not like what they saw.
very people they are supposed to pro-
to be written in black and white, with
tect.
bright red lines telling people what they
The rule against advertising game
can and cannot do.
odds was in response to billboards in
One of the first things that gets lost is
Las Vegas shouting “Loosest slots!”,
the reason behind the rules.
which the New Jerseyans found dis-
We could also say, “That’s so 1980s.” But listen to this complaint from Steve
tasteful. Kitchens had to be measured
because the casino enabling statute
ized in New Jersey, for example, there
had requirements on the square foot-
was a great fear that all that new money
age for gaming and non-gaming areas.
would create conflicts of interest for
An investigator who gets paid by the
Table felts were all the same color,
elected and appointed officials. Casi-
hour and can decide how many hours
as were gaming chips, so that regula-
nos were brought in to revitalize Atlan-
he should charge, called up one of my
tors would have no trouble reviewing
tic City. A Casino Reinvestment Devel-
outside directors, the chairman of Occi-
eye-in-the-sky
opment Authority was created in 1984
dental Petroleum, and insisted that he
to make sure the money went into pro-
supply him immediately with proof of
Social scientists have discovered what
jects like housing. Strict rules were put
his ownership of his car. Please. What
can be considered universal truths
in place to ensure casinos would not
was he looking for, the Mafia?
about regulatory agencies. Regulators
influence where the money was spent.
security
videotapes.
When casinos were first legal-
tend to start out overly-strict, although
Wynn, while he was being vetted by the Massachusetts regulators:
Wynn, is, of course, right.
These are
they eventually become overly-friendly
This led in 1986 to the Chairman of
billion-dollar companies, and a car is
with the industries they control. Gov-
the CRDA having to resign, because his
not going to determine suitability. But
ernment bureaucracies continue to
adult daughter, a casino cashier, moved
refusal to comply with even an unrea-
grow, even when the businesses they
back into his house.
sonable demand can lead to a casino
are regulating are shrinking. And a rule,
license being denied.
once put down on paper, lasts until ...
It’s easy, in this case, to see that a gov-
well, forever.
ernment agency was not going to direct hundreds of millions of dollars into,
INFINITY GAMING
35
36
jULY 2015
The problem here seems to be that dis-
So it knew that it could not just come
connect between the reason for the rule
right out and say, “That’s a stupid rule.”
and the rule itself. Yes, the best way to
Instead, it commissioned leading gam-
regulate any legal gambling operation is
ing attorney, David O. Stewart, to write
to investigate the background of every-
a number of white papers, with titles
one involved in management or owner-
like “Improving Gaming Regulation: 10
ship, and to track every dollar in and out
Recommendations for Streamlining Pro-
of the business. But why are we regulat-
cesses While Maintaining Integrity.”
ing? Why aren’t there the same types of government oversight on used car deal-
The A.G.A. and other professional
ers or street vendors?
groups, such as the International Association of Gaming Regulators and the
There really was Mafia infiltration of ca-
International Association of Gaming Advisors,
have
suc-
ceeded in streamlining regulation. They have been able to get many jurisdictions to adopt a “Multi-jurisdictional Personal History Disclosure Form.” If the point is to ensure that casinos are owned and run by people who are honest and competent, the questions should be the same, regardless of which state is issuing
the
license.
A.G.A.’s recommendations seem small, but sinos during the 1940s and ‘50s. The
they could have a big impact. Wynn
business is still, primarily, conducted
would never have had reason to com-
with untraceable cash and gaming
plain, if outside directors were only
chips, with few paper records. There is
registered, not licensed.
not only the potential for skimming, but
would save millions of dollars if they
also for cheating.
did not have to file reports, sometimes
Companies
every three months, containing inforBut is there the same need today to
mation that is easily available to regula-
re-investigate publicly-traded corpora-
tors from other sources. And, is there
tions that have been licensed in a doz-
any reason why waiters and waitresses
en jurisdictions as there was when the
have to undergo background checks?
insiders had names like Bugsy and his girlfriend, the Flamingo?
Perhaps we never will, or even should, reach a point where running a casino
The industry trade group, the American
is like running any other business. But
Gaming Association, has been trying for
every government regulation should
years to get regulators to curb their en-
start with the question, “Is this rule re-
thusiasm. The first head of the AGA was
ally necessary?”
Frank Fahrenkopf, Jr., former chairman of the Republican National Committee.
INFINITY GAMING
Is there the same need today to re-investigate publicly-traded corporations that have been licensed in a dozen jurisdictions as there was when the insiders had names like Bugsy and his girlfriend, the Flamingo?
38
jULY 2015
Casino legend Kirk Kerkorian dies at 98 Kirk Kerkorian, the billionaire credited with helping transform Las Vegas into a gambler’s paradise, has died aged 98. Kerkorian, who made fortunes with ma-
sino resorts on the famous Las Vegas
Beverly
jor stakes in movie and auto companies,
strip.
Tracinda, making him MGM’s biggest
passed away in Los Angeles on Monday
Hills
investment
company
shareholder.
15th June, announced by MGM Resorts
Kerkorian kept building his casino em-
International, the casino giant he found-
pire well into his 80s, overseeing the
“Mr. Kerkorian was a quiet but powerful
ed.
$4.4 billion purchase of Mirage Resorts
force behind the transformation of the
from rival Stephen Wynn in 2000 and
Las Vegas Strip into one of the world’s
Born into an Armenian family in Fresno,
buying the Mandalay Resort Group in
most popular tourist destinations,”
California, he always took chances on
2004 for $4.8 billion.
MGM Resorts said in a statement.
Kerkorian did not give up his board seat
“He was also a generous humanitarian
He gambled on airline travel, Hollywood
at MGM International until 2011, when
who donated hundreds of millions of
pictures and the auto industry making a
he was appointed chairman emeritus
dollars to charities worldwide.”
fortune of $4 billion estimated last year.
only weeks before his 94th birthday.
business to great success.
Kerkorian was born in 1917 to ArmeBut he will be remembered most in Las
At the time of his death, he held 18.6
nian immigrants who found fleeting
Vegas, where he developed the first ca-
percent of the company through his
wealth during the raisin boom of World
INFINITY GAMING
JULY 2015
War I, only to lose it a few years later.
39
largest hotel, and then topped that in
In 2006, he built up a big position in
1973 with the larger MGM Grand.
General Motors and made an effort to
After his family moved to Los Angeles,
push the U.S. auto giant into an alliance
Kerkorian dropped out of school after
In 1986 Kerkorian sold that hotel, which
with Nissan-Renault. That failed, and
the eighth grade, and worked odd jobs
was renamed Bally’s, and built a new
Kerkorian sold his stake.
as a newspaper delivery boy, a bouncer
MGM Grand, which opened in 1993 with
in a bowling alley and an amateur boxer.
another record-setting 5,000 rooms.
During World War II, he went to Canada
His wheeling and dealing was not con-
Ford. In the latter he took huge losses
and joined the Royal Air Force, deliv-
fined to Las Vegas. He bought and sold
after the industry crashed in the 2008
ering unarmed Canadian bombers to
the legendary MGM studios in Holly-
economic crisis.
European bases on “suicide runs” for
wood three times. He first combined it
$1,000 a trip.
with United Artists, which he then sold
Kerkorian was known for being private,
to Ted Turner in 1986.
and was compared to the recluse How-
He turned his attention first back to Chrysler, with a failed bid, and then
After the war, he started a small charter
ard Hughes.
Los Angeles-Las Vegas air service, which
Turner’s financial woes saw him resell-
he sold in 1968 to the TransAmerica
ing much of the company back to Ker-
But he told a Las Vegas newspaper in a
Corporation for $85 million worth of
korian, who then sold the studio again
rare 1999 interview, “I’m far from being
stock.
in 1990, this time to Italian financier
reclusive. I have 30- or 40-year friend-
Giancarlo Parretti.
ships that I prefer to meeting new peo-
In the meanwhile, in 1962 he bought 30
ple. I go to an occasional party, but just
hectares (80 acres) across from the Fla-
Kerkorian recouped the studio after Par-
because I don’t go to a lot of events, and
mingo hotel in Las Vegas for $960,000.
retti defaulted on his loans in 1996. He
I’m not out in public all the time doesn’t
He rented the land to the developer of
sold MGM a third time in 2005, to a con-
mean I’m anti-social or a recluse.”
what became Caesars Palace.
sortium backed by Japan’s Sony.
In 1969, on another plot, Kerkorian built
In the auto industry, Kerkorian accu-
is survived by his daughters, Tracy Ker-
the International, at the time the world’s
mulated a large stake in Chrysler in the
korian and Linda Ross Hilton Kemper,
mid-1990s and launched a takeover ef-
and by three grandchildren, MGM said.
Kerkorian was married three times and
fort that ultimately failed.
PHOTO TITLE
He was a quiet but powerful force behind
Es acepra venimin cidesseIdem presturei simei patem tem simus bonenHi, at, omnimo nonsilicae
the transformation of the Las Vegas Strip into one of the world’s most popular tourist destinations
INFINITY GAMING
40
jULY 2015
Mobile - Bridging the Digital Divide By Paul Swaddle - CEO of Pocket App
Infinity Gaming welcomes our latest expert to our feature writer rosta. Paul Swaddle will be covering everything APP and technology based.
Almost a year ago to the day I read an
of digital exclusion should in no way
worth noting that those already at a dis-
article which described digital exclusion
be underestimated, ever since the early
advantage and arguably with the most
as being a modern day social evil which
90’s when personal computers first be-
to gain from the internet are the ones
needed to be abolished. Although this
came commonplace public policy ex-
least likely to be making use of it.
may sound somewhat overdramatic, the
perts have worried about the ill effects
fact that seven million adults – approxi-
of a digital divide caused by unequal ac-
This is where I believe that mobile
mately 13% of the population - are of-
cess to computing resources. In fact, the
comes in and is helping to address the
fline and within this group the elderly,
issue is such a bone of contention that
issue of digital exclusion.
those with disabilities and those with
the government saw fit to put in place
lower incomes and less education are
a digital inclusion strategy in the hope
all
represented,
of getting every capable person online
shows that digital exclusion is a signifi-
disproportionately
by 2020. The aim of the strategy was to
cant challenge in the UK and one that
accelerate the process of digital inclu-
deservedly continues to take up column
sion, so that only 8.3 million people (16
inches and garner major attention.
per cent of the adult population) will be offline by 2016, and 4.7 million people
You only have to look at how core the
(less than ten per cent of the adult pop-
digital economy has become to the
ulation) will be offline by 2020, with the
plans of most organisations. How many
ultimate goal being to “develop digital
banks, building societies, local govern-
services that are so straightforward and
ment services and retailers are rethink-
convenient that all those who can use
ing their bricks and mortar strategies
them will choose to do so”.
and looking to cut their internal costs and minimise their physical premises?
Digital skills are not only vital to the
As these organisations continue to
maximise economic growth and job
adopt this approach the sizeable minor-
creation, shown most prominently in
ity of people who have been digitally
the Booz and Co report of 2012 which
excluded will inevitably face both re-
stated that a lack of online skills was
duced access to essential services and
costing the UK economy £63bn in ad-
higher personal costs.
ditional GDP growth, but with research showing a clear correlation between
That’s why I feel that the ramifications
INFINITY GAMING
digital and social exclusion, it’s also
Approximately 13% of the population are offline and within this group the elderly, those with disabilities and those with lower incomes and less education are all disproportionately represented.
JULY 2015
Smartphones are easy to use and tech-
and skills, but in my opinion mobile is
nically robust and require a much lower
the key tool to address digital inclusion.
financial commitment than a PC with
With the internet increasingly becom-
fixed broadband. They are also well
ing a mobile phenomenon and being
suited to transient individuals, those
accessed by mobile devices, and with
with in-home mobility challenges and
the amount of web content tailored for
are also an ideal route to internet ac-
mobile browsing inevitably on the in-
cess for ‘digitally reluctant’ individuals
crease, the role of mobile technology,
who may not see the point of getting a
and most eminently the smartphone, in
desktop or laptop device but may be
bringing more and more people online
prepared to go online via a device they
should not be underestimated.
already have. As the task of helping people move The statistics show that the number of
online becomes more challenging, it
smartphone users has grown exponen-
makes sense to use all tools that are at
tially since 2011 when there were 21.6
our disposal. As tariffs and equipment
million mobile users compared with
costs continue to fall mobile is already
the forecasted 43.4 million in 2017, in
price comparative with fixed broadband
fact today over half of UK adults use a
and is a tool well suited to addressing
smartphone or other mobile device to
the issue of digital exclusion and ul-
get online.
timately will be the best option for an increasing number of individuals transi-
Historically, programmes to support individuals in moving online typically
tioning online.
smartphone users has grown exponentially since 2011 when there were 21.6 million mobile users compared with the forecasted 43.4 million in 2017, in fact today over half of UK adults use a smartphone or other mobile device to get online.
focussed on fixed broadband solutions
INFINITY GAMING
41
The International
GAMING APP AWARDS
LONDON - 2015 NOMINATIONS OPENING SOON
GAMING NEWS
JULY 2015
Caesars receive lawsuit for $6 billion on restructuring plans
A
new lawsuit presented to
holders were kept happy with the
Caesars said Monday that it believes
Caesars Entertainment for
deal, now their major creditor is su-
the trustee’s lawsuit “is without
$6 billion was made by one
ing it could mean the beginning of
merit” and that the filing of the suit
the end for Caesars.
doesn’t violate a pledge by some
of its major bondholders on Monday 15th June, citing the casino company
creditors to support the restructuring
had shuffled its lucrative assets out
The lawsuit claims in general that
of the operating company prior to it
Caesars entities shifted good assets
pact, which remains in force.
entering bankruptcy.
away from creditors to benefit its
Caesars has long defended the
owners, including private-equity firm
transactions in question as proper,
This new lawsuit is another blow to
Apollo Global Management. With at
designed to manage and improve the
the giant casino operator that carries
least seven transactions between
debt profile and liquidity of its oper-
some $18 billion in debt and entered
2009 and 2014 of questionable
ating subsidiary, Caesars Entertain-
its operating part of the company
reasoning why the company moved
ment Operating Co.
into bankruptcy in 2014. What is
these assets.
most worrying for Caesars is before they tried to ensure their major debt
However in response to the lawsuit-
INFINITY GAMING
45
46
jULY 2015
Interview with Wouter Sleijffers CEO of Fnatic
Former senior executive at Skrill talks to Infinity about his exciting new role as CEO of Fnatic
Wouter many thanks for talking to Infinity today, firstly can you explain to our International readers what is Fnatic and what industry is it focussed at?
ered to be (one of) the best world-wide.
timates its current engaged fan-base to Having had continued success since its
be over 5 million globally. We have re-
inception in 2004, Fnatic is also consid-
cently surpassed the 2 million Facebook
ered a leader brand in eSports,. And we
fans, a novelty for any eSports brand.
have the vision to become the lifestyle
When including viewer stats through
brand for all eSports enthusiasts.
streamed and VOD content, we achieve
Fnatic is a global eSports organisation with 7 professional gaming teams in its roster, each competing that the highest
viewing audience world-wide. Fnatic es-
a very high reach into the eSports audi-
What is the demographic of your audience?
level in their respective game title. eS-
ence. Industry research points out that, whilst eSports is growing older each year, also the audience shows a slow-
ports is a fairly new phenomenon where
Our demographics are fairly similar to
ing ‘normalizing’ trend, i.e. it attracts
professional, full-time video gamers
any major sport. The difference is that
the Millennials up to Generation X.
team up to compete in tournaments. To-
eSports attracts a truly global audi-
day, prize money pools reach up to $15
ence. eSports is currently to have an
million. Some of our teams are consid-
estimated 100 to 150 million regular
INFINITY GAMING
How big is this sector, is Fnatic the
JULY 2015
FNATIC TEAM The Fnatic Team is a professional video gaming team, consisting of players from across the globe who all make a living through competing in video game tournaments.
WOUTER SLEIJFFERS CEO of Fnatic
only business that does this and what are the opportunities for the future?
way to describe this, is that the ‘Big
The number one reason is that Fnatic
Bang for eSports has happened 2 to
has been purely built out of passion.
3 years ago, but the Universe is still
When starting in 2004, many would
in formation’. New stars will arise and
have considered eSports not to have
Estimates on the sector vary but when
others have died already. Fnatic is one
a viable future, whether as a company
looking at the data from Superdata
of the brightest stars until to date. For
or as a player. Some of our pro-players
Research, the global eSports market is
any brand or organisation who’s look-
we’ve had in our roster had to fight per-
estimated at $612M of which $111M
ing for new ways to get heard in the
ception and adversity. Today, they’re
consists of corporate sponsorships in
current digital world with new rules
considered as legendary pioneers who
NA alone. Of course, Fnatic sees some
of engagement, I’d like to say that eS-
can still reckon hundreds of thousands
healthy competition in the market but
ports is probably the most promis-
of fans to their following.
we’ve been fortunate to have had a
ing opportunity in the next decade
clear and concise strategy from the out-
to connect with the demographics.
set. The opportunities are plenty. The best
Other than that, Fnatic’s vision has always been to be a brand leader in this
What makes Fnatic such an exciting and leading company in eSports?
emerging industry. We’ve kept our passion for winning and our values at heart,
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jULY 2015
Wouter Sleijffers CEO of Fnatic
whether as a pro-gamer or as a business, which I believe are the core to our success.
is it from your previous role with Skrill and what is your remit for the company going forward?
FNATIC TEAM Fnatic is considered to have world class squads in Counter-Strike, StarCraft II, League of Legends, Dota 2, ShootMania: Storm and Call of Duty.
Fnatic is very well positioned to further build on its strong brand awareness and identity in eSports. For us, over 5 million fans and followers is just a start.
How long has Fnatic been operational?
I tend to see my role at Fnatic as a pretty
Our vision is to be the lifestyle brand in
natural step in my career. It’s not hard
eSports. Although that is a big ambition,
to be passionate about eSports and
today we’re working on initiatives and
Fnatic started in 2004 by Sam and Anne
the Fnatic brand. In Fnatic, we work as
ventures that will bring us there.
Mathews. Based out of Southhampton
a team and my role is merely to set out
(UK), Sam had assembled a team of
and communicate the path forward, and
pro-gamers in the then popular game
to support the team getting there. Of
Unreal Tournament. From the start, the
course I can rely on the vision and the
team had some significant wins under
achievements Fnatic realised before I
their belt. Fnatic established its domi-
came in. Today, I tend to see my remit
If you look at the audience, it is still pri-
nance its League of Legends team won
first and foremost in the increasing the
marily a male audience (75% to 80%
the first ever League of Legends Season
Fnatic brand value.
in general) but it varies significantly
1 Worlds final in 2011. Fnatic has had professional teams in nearly 20 different game titles and has achieved ‘world dominance’ in titles such as Counter Strike, League of Legends, Battlefield 4 and Heroes of Newerth among others.
Fnatic seems to involve younger players in their twenties, is it a young man’s game?
per game. As mentioned before, we see
Wouter you have been involved in the online payments sector for a long time, has that experience helped you with the new role with Fnatic?
the audience ‘normalizing’ as eSports grows older as an industry. eSports has attracted also the attention of game developers, who are looking to build an ‘eSports eco-system’ around their game. Although not everyone succeeds, I’m
Is the customer base mainly from Europe and is the lucrative US market playing on Fnatic?
Yes, though so has any experience in my
certain that we’ll see games that will at-
professional career so far. eSports is an
tract a larger female audience.
interesting mix of competition, entertainment, brand, content, creativity &
In terms of the players, like footballers
Although Fnatic is considered to be
technology. In this case, we’re not a ‘fa-
and other professional athletes, there’s
a European eSports organisation, we
cilitator’ where trust, payment mix and
a limited time where you can compete
attract fans and viewers in the Ameri-
user experience are the key elements
at the highest level. Our pro-gamers
cas, Asia and of course Europe. US is a
in the buying experience. In eSports
practice many hours every day, travel
large market for us just because of the
there’s a lot more emotional value and
the world for tournaments and need to
size of the country and the state of the
for every partner we work with it’s first
deal with the pressure that comes with
economy. In general, more and more
and foremost about exciting the audi-
competing in front of millions of view-
brands and organisations start to realise
ence and building a relationship with
ers at the highest level.
the immense opportunity eSports has.
them. Said that, most of Fnatic’s pro-teams
You joined the company in early 2015 as CEO, how much of a change
INFINITY GAMING
How do you see the future for the company?
are supported with a manager, coach and analysts and at times a sports psy-
JULY 2015
49
you think more will happen?
for a long time?
er. Of course, the fact that pro-players
As in any industry, consolidation will
The wise thing to say is that only time
can look forward to larger prize pools,
happen at some stage and in waves.
will tell. Fnatic is close to my heart and
makes it also more attractive to post-
The question is more when it happens
of course it’s my dream and ambition to
pone the question what life after pro-
and what the trigger is to initiate the
say at some day: ‘We’ve done that and I
gaming would look like.
consolidation. I suppose that in pay-
was part of it’.
chologist. This means that players can compete at the highest levels for long-
ments, there’s the eternal ‘chicken and egg’ problem. Without a user base, you
How does the company generate profit, is it by players registering?
will not find many merchants to adopt your payment method. Without many merchants that have integrated your
Today, we mainly make our revenue
payment method, you won’t find many
through sponsorships, apparel and
consumers feeling the need to use your
merchandise sales and in-game fan art.
method. Payments means dealing with
As we’re building out our brand, we’re
money and that remains hard in terms
working on new opportunities that will
of getting a behavioural change with
help to scale our business.
the masses. The last time this happened at this scale, was with the introduction
Away from Fnatic for a moment and your thoughts on the former sector of payments and the multiple consolidations happening at present, was that expected and do
of ‘plastic’ which is still finding its way into online payments at a large scale.
How does the future look for Wouter Sleijffers, will you be at Fnatic
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GAMING NEWS
Betfair annual profits rise 53%
JULY 2015
New Galaxy phase not as strong as hoped
etfair enjoyed a 21% rise in revenues for the last year standing at £476.5 million, with profits up by 53% at £94.3 million compared to the previous year.
B
Galaxy Entertainment Group announced at its annual general meeting that the recently opened new phase of Galaxy Macau last month was not as strong as expected in revenues.
Earnings before interest and taxes (EBIT), which exclude the £19.2m spent on the government’s point of consumption tax (POC), of which UK customers spent £120 million on the Betfair site, which was well ahead of the forecast of £102 million.
Chairman Lui Che Woo said to reporters in Hong Kong that the new resort phase, “is satisfactory, but not as good as what we expected.” He also said that gaming would be impacted even further should the no smoking rule extend to VIP Rooms.
Betfair has had an “excellent year”, said chief executive Breon Corcoran. “The business now operates at pace and our people have a strong will to win.”
The new project’s performance “will be better in the next one to two months,” said Galaxy Vice Chairman Francis Lui, adding he was happy with the performance of the non-gaming elements at its new properties such as its hotel bookings and dining outlets.
Over the past 12 months, the company has successfully increased active customer numbers by 52% to 1.7 million and introduced many new users to online gambling, with customer acquisitions up 65%. Much of the rise on profits and revenues was down to the increased marketing spend by Betfair of £28 million. The firm also managed to transfer 100% more customers from sports betting over to online gambling through a cross selling programme. The company said that 70% of its sports betting revenues are generated by mobile, along with the US arm of Betfair which showed a profit of £16.8 million a rise of 53% from last year.
“Be patient, we believe the scale, facilities and services of the second phase are the best,” he said. Business should improve in July and August, compared with June which is an exam season for students, he added. Some good news for Galaxy was that in June so far they are the leading company of market share in Macau with 25% in gaming revenues, taking over Sands China that now sits at 22%.
Betfair said that £50 million in revenues for the year went on political bets such as the Scottish referendum and the UK general election.
INFINITY GAMING
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GAMING NEWS
JULY 2015
Yggdrasil Gaming signs BetClic Everest Group
Y
ggdrasil Gaming has signed
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New CEO of UKGC named
T
he UK Gambling Commission
said: “I am delighted that Sarah is
Commission into its second decade
(UKGC) has announced that
joining the Commission and look
as the regulator of commercial gam-
Sarah Harrison will become
forward to working closely with her.
bling in Great Britain.”
their new CEO from the 1st October
We are making significant progress
once she leaves her current role at
in our aims to raise standards in the
Harrison commented: “I am very
energy watchdog Ofgem. Harrison
gambling industry, empower con-
pleased to be appointed Chief Exec-
will actually join the UKGC on the
sumers to manage the risks of gam-
utive of the Gambling Commission,
7th September as a Commissioner
bling and to build partnership and
and look forward to the challenges
and then when outgoing CEO Jenny
understanding of gambling issues.
of keeping gambling fair and safe
Williams leaves on the 1st October
Sarah has a wealth of experience
and regulating an industry which is
Harrison will assume the role fully.
in regulation along with social and
changing rapidly with technology.”
consumer policy and communicaPhilip Graf, Chair of the Commission,
tions – she is well placed to lead the
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GAMING NEWS
JULY 2015
Wynn & MGM in merger talks?
S
peculation over the possible merger of Wynn Resorts and MGM surfaced when a well-respected trader said that there was talk of a deal between the two gambling giants, indeed because of that Wynn shares rose some 7% before the weekend. But why would either company want to buy the other? There is some history for Wynn in wanting back some of his resorts he lost in 2000 when he was forced to sell part of his empire to MGM Resorts when Mirage was bought out for $4.4 billion. However MGM carries a lot of debt $12.5 billion and Steve Wynn never likes carrying that kind of debt even if he was to become CEO of the merged company. Not just this but Wynn Resorts are growing with two new resorts coming in the next few years so why would they want to merge? Wynn likes to cater for the top end of the market and certainly not all MGM resorts not that. However MGM buying Wynn Resorts would look more likely, Wynn has a much better balance sheet, is the smallest of the two companies, BUT the question of Steve Wynn wanting to sell up his empire is highly unlikely. Many see the rumours as that, it would be a huge surprise should either company carry this through to a merger, but then again it would create a huge gambling company stretching from Las Vegas, over North America and into Macau. Watch this space but the clever money is on a no deal.
Austrian government to ban poker outside casinos The Austrian government will ban all forms of poker games from outside of licensed casinos from 2020 it said in a statement, however Casinos Austria wanted the ban to be enforced as early as 2017 but has welcomed the new measures In the statement the government plan to limit poker to licensed casino operators or electronic lotteries like win2day and WINWIN machine operators. The law will allow for poker games to be played in pubs across the country but with limits such as a maximum of 100 players who pay â‚Ź10 or less and those tournaments in pubs can only be held once in each quarter of the year. The new ruling will mean clubs such as the Concord Card Casinos will be outlawed which is welcomed by Casinos Austria and the casino giant also called for stricter prosecution laws for those who continue to ignore the new rules when they become law.
INFINITY GAMING
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GAMING APP NEWS
JULY 2015
Japan 50% chance of passing gambling bill this year
J
apan has a 50% chance of passing a bill this year legalizing integrated resorts in the country, says Managing Director of Morgan Stanley Asia Praveen Choudhary. The comments were made at the recent G2E Asia conference and in the same week. Fitch said in another report on the prospect of Japan passing legislation “We think there is a better than 50-50 chance that an IR [integrated resort] bill passes this year; however, we do not think an IR can open by the 2020 Tokyo Olympics. We think the most likely scenario is that gaming regulations look similar to Singapore’s, with limited licences and an entrance fee levied on locals.” The firm also said it expected there to be only two licesnes issued which could generate a combined revenue of $6 billion annually. “This assumes 500 table games and 3,000 slot machines each and respective win per day rates of around US$14,000 and US$600. This is above roughly US$5.5
billion being generated by Singapore’s two IRs,” said the Fitch report.
Pennsylvania ready for online gambling this year With a recent report saying that online gambling could generate as much as $100 million in state taxes the option again may well go with legalising online gambling as opposed to raising public taxes.
The smart money with online gambling observers and consultants is that Pennsylvania will be the next state to legalise online gambling, even thou Sheldon Adelson is spending fortunes trying to stop the state passing legislation this year. However State Senate Republicans want a way out of having to increase taxes to help plug the huge hole in public spending debt and see online gambling as the alternative. It is not the first time either the state has done this back in 2004 Slot machine gambling was legalized to help reduce property taxes.
“There’s definitely a competitive aspect to it,” said Casey Long, a policy staffer for Senate President Pro Tempore Joe Scarnati, one of the sponsors of the gambling measure. “Two of our neighbouring states, New Jersey and Delaware, have implemented online gaming, and I think that it’s important that Pennsylvania keep up with what other states are doing in the gaming industry.” “It’s certainly preferable to any sort of tax increase that the governor may be proposing that this time,” Long added.
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