July 2015 Infinity Gaming Magazine

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

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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

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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

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Team of the Year Lyn Salmon & Rank Team

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10

11

12

15

Innovator of the Year

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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,

INFINITY GAMING

47

48

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

INFINITY GAMING

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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

51

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GAMING NEWS

JULY 2015

Yggdrasil Gaming signs BetClic Everest Group

Y

ggdrasil Gaming has signed

Infinite API™ for gamification than

gdrasil in that bracket. Their content

a deal with BetClic Ever-

signing a deal with an operator as

is excellent, but it is also their focus

est Group to provide three

large and as renowned as the BetClic

on the player experience which is

Everest Group. We’re looking forward

particularly appealing for us. This

of their brands with access to its entire product

state of mind matches

suite, including the

with our vision, which is

recently-launched

to integrate innovative

pooled progressive

casino offers from the

Jackpot game Joker

best providers.

Millions.

We’re very excited to be BetClic, Expekt and

working with them and

Monte Carlo Casino

we’re sure our players

will all receive the

will be pleased with

leading supplier’s

these latest additions

casino games port-

to our service.”

folio of 12 video slots, Infinite API™

Yggdrasil’s portfolio

for gamification,

contains a wide range

unique Super Free Spins, and the new

to working closely with their team

of popular casino games, including

HTML5 framework called iSENSE 2.0

to help drive revenues and player

Cazino Zeppelin, Jokerizer, Winter-

with its industry-leading new User

engagement.”

berries, Reef Run pooled progressive

Interface.

slot game Joker Millions and the Pascal Brouet of BetClic Everest

desktop mobile ‘tandem drop’ suc-

Fredrik Elmqvist, CEO of Yggdrasil

Group, said: “We are only interested

cessor Dark Joker Rizes.

Gaming, said: “There is no better

in working with the best and most

endorsement of iSENSE 2.0 and our

innovative suppliers and we put Yg-

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

INFINITY GAMING

53

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

55

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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.

INFINITY GAMING

57