Infinity Gaming Magazine September 2022

A note from the editor

either to a single winner or a compet ing company, each and every winner is applauded by the whole room, you truly are so special.

Inspiring WIGD”

One of the most emotional parts of the evening was the award given to the Playtech Team in Kyiv for Excellence in Customer Service, given the terrible dif ficulties the team has faced with many having to relocate (the recipient is now living in the UK) because of the atroci ties conducted by Russian President Vladimir Putin.

Lana Thompson - Editor

The whole room stood and applauded the award and it really did bring a tear to my eye.

Special Edition of the IGA & WIGD Awards

Welcome to the latest edition of the In finity Gaming Magazine following our summer break and firstly Congratula tions to all those inspiring individuals and companies at the 2022 Women in Gaming Diversity Awards (WIGD).

The 15th September at the beautiful Savoy Hotel saw so many inspiring indi viduals and companies being rewarded for excelling in celebrating diversity and inclusion within the workplace, you are all amazing.

The WIGD Awards wants to grow further next year, even thou we were sold out 6 weeks before, let this innovative origi nal event show the power of the move ment, it is all up to us.

What is so special about the WIGD Awards is the support from each person

I want to thank each and every one of our sponsors for believing in what the WIGD does in recognising inclusion and diversity within the gaming sector, with out your support the event is not pos sible. Also all the attendees and their companies, you all believe, we just want to bring more to join us for 2023 and make it a movement that the whole in dustry should support.

Finally do not forget nominations for the 2023 International Gaming Awards (IGA) are now open on the website.

Enjoy this special edition of the maga zine. “To Infinity and Beyond!”

Regards, Lana 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

PUBLISHING

Infinity Gaming Magazine is operated by © Clever Duck Media Ltd ® Company Reg. No. 687 1018 (Registered in England)

V.A.T reg. no 972 6372 91

Sponsorship

Infinity Gaming Magazine Contributing Writers

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

Christina Thakor-Rankin

Christina is Principal Consultant at 1710 Gaming Ltd, a specialist betting and gaming consultancy, deliver ing a range of services including licensing and com pliance (incl. regulation, money laundering and social responsibility), business start-up, training and stra tegic re-engineering, project management, research, business analysis and development, to start-ups and

Andrew Cosgrove - Slots Guru

Andrew Cosgrove is a seasoned slot operations vet eran and certified project manager with over 24 years of hands on experience in Latin America and the Ca ribbean. Andrew has worked on both the operator and supplier side of casino slots and continues to help cli ents succeed and exceed customer expectations.

Lynn Pearce

Lynn has extensive senior management experience in online gaming. She is an experienced, data-driven, commercially focused, strategic marketing leader. She has over 15 years of proven success in gaming, from land-based casinos, to online gaming companies of fering sports betting, poker and casino, live casino and Esports. Lynn has many start-ups under her belt

Tim Cullimore

From dealer to CEO in the U.K., Europe and North America, Tim has pretty much seen it all in Casino gaming. For over 40 years, from running slot rooms which needed to frisk for guns to the Ritz in Mayfair, arguably the most luxurious casino in the world, Tim has never stopped challenging what we think we know about casinos.

established multi-national operators and providers, gambling regulators, law enforcement and govern ment agencies, media, and specialist interest groups and associations within the sector, in both established and emerging markets across the world.

www.1710gaming.com

Andrew can be reached at andy.cosgrove@heming waycasinoconsulting.com or see http://hemingway casinoconsulting.com/

and is now co-founder and CEO of a start-up igaming company, Mobius Interactive Ltd, headquartered in Vancouver BC Canada.

Tim is a well-respected Consultant to the gaming in dustry, encompassing project management and opera tional analysis, as well as representing and advising some key manufacturers within the industry. Tim is a renowned conference speaker and also proud to be visiting lecturer at the University of West London Col lege of Hospitality and Tourism.

general manager and CEO

Connie James

EVP & Chief Financial Officer

Roxane Lukas Chief People Capability Officer

Siobhan Lane Interim Gaming Lead & Chief Commercial Officer

Tracy Skenandore VP Corporate Social Responsibility

Verity Lavender VP Marketing

California Sports Betting Battle Tops $500 Million

The battle for control over the Golden State’s prospec tive sports betting market has been a brutal affair. For some months now, the race for the keys to a particular lucrative treasure trove has been between two measures; Proposition 26, backed by 58 of California’s native tribal entities, and Proposition 27, advocated by a num ber of the U.S’ biggest commercial sportsbook operators.

Such is the scale of the bounty on offer, both sides have thrown mil lions of dollars into marketing cam paigns, desperate to convince the Californian electorate of the merits of their respective proposalsprior to November’s ballot box vote. It’s now been revealed that these colossal efforts have been facilitated by over $500m in funding donations, with

support coming through a num ber of different channels. Make no mistake, this has been an unprec edented level of spending. Indeed, perhaps perfectly illustrating the scale of expenditure, the California Secretary of State’s office comment ed that a usual measure featuring in a referendum would command around $10m in support payments.

Proposition 26, commissioned by the ‘Coalition for Safe, Responsible Gaming’, which, if passed, would legalize sports betting in retail outlets based in tribal casinos and state racetracks, has received ap proximately $151.5m in donations so far. The Coalition has concen trated its efforts in challenging the ‘charitable’ claims made by its rival, which are evident in the official title of Proposition 27, ‘Californians for

Solutions to Homelessness, Mental Health, and Addiction’. However, the commercial sports betting firms advocating this proposal, such as industry giants FanDuel, DraftKings, and BetMGM, have doubled down on their commitment to the afore mentioned causes, and dismissed allegations that their campaign header purely serves as a clever marketing ploy.

Given the financial strength of its sponsors, Proposition 27 campaign messages have found their way onto TV magazine shows and radio ad vertisements, whilst franchises carry the branding of its funding opera tors on the front of their jerseys. To press, the measure has been backed with $369,931,682 worth of dona tions.

New York’s Sports Betting Performance Below Par

Operators in New York have presided over unprec edented handle figures since the inception of the state’s sports betting market in early Janu ary. A launch month wagering return of $1.67bn emphatically announced the Empire State’s arrival into the sportsbook sector, and immediately served to solidify its position as the industry’s most lucrative U.S jurisdic tion.

However, in terms of its financial performance, New York’s inaugural month remains its strongest to press. Clearly, that astronomical figure would have always been challenging to eclipse, but a concerning pattern began to emerge towards the Spring.

Between April and July, New York’s

handle numbers steadily declined, resulting in the state dipping below the $1bn threshold for the first time in July. True, the traditional lull in the U.S sporting calendar can partially explain such dwindling returns, but a second consecutive month to reg ister a total south of $1bn has raised one or two early Autumnal alarm bells.

Indeed, in August, New York resi dents placed $872.2m worth of bets, a 9% uplift on the previous month, but still some way short of previ ous monthly tallies. Encouragingly however, gross gaming revenue climbed to $99.6m, a significant, 35% improvement on July’s $73.6m. Local sports betting stakeholders will be hoping the onset of the NFL season,

which commenced last weekend, will propel more players to wager in September.

New York’s sports wagering theatre is dominated by betting giant FanDuel, who are headquartered in New York City. The operator was accountable for delivering 43% of the state’s total handle volume, generating a staggering $46.6m in gross gam ing revenue in the process. BallyBet undertook its first full trading month, after becoming the latest enterprise to gain a New York license in July. The Rhode Island-based outfit took $1m in bets throughout the duration of August, earning just short of 100k in revenue.

What Next for Macau?

By Christina Thakor-Rankin

COVID has completely changed the landscape of the global betting and gambling industry. Those operating within the digital space (because they were already there or their business and/or regulation was able to shift quickly enough to accommodate a changing world) didn’t just survived - many thrived and continue to do so. Others were less fortunate. Those with destination land-based opera tions hampered by an inability to adapt due to inflexible technology or stiff regulatory constraints regula tion were hitthe hardest, finding their futures hanging in the balance.

The post COVID recovery has been mixed. Some land-based opera tors have found themselves slowly bouncing back, some such as Vegas have even seen a mild resurgence on pre-COVID footfall as those starved of physical interaction and experiences,

including the previously elusive younger generation, flock back. Oth ers, again, have been less fortunate. Some such as South Africa and parts of Europe and the US have seen a slower recovery due to changes in customer behaviour and shift to the convenience and accessibility of on line gambling, or tougher regulatory measures.

Those who have been hit the hardest, however, are those with land-based operations where pivoting to an on line offering has not been an option and where any attempts at recovery has been severely stifled by regula tion, and arguably none more so than Macau where a hard-line approach to both COVID and gambling regula tion has seen the Vegas of the east transformed from a city of gambling dreams to the stuff of nightmares.

First there was the zero-tolerance

approach to COVID that saw Macau be not only one of the first to go into lockdown and one of the last to emerge from it, but also experience repeat cycles in a way others did not, resulting in a stop-start recovery that worked for no-one.

Next came Beijing’s on-going clamp down on gambling which culminated just under a year ago in the arrest of 11 people, including Macau’s Suncity ‘junket king’, Alvin Chau a syndicate comprising over 12,000 gaming agents and 80,000 members across China, on money-laundering and il legal cross-border charges.

The impact of this action was im mediate and devastating. Not only did it result in an immediate suspen sion of trading on Suncity shares on the Hong Kong Stock Exchange the impact was felt across the wider in dustry with MGM China, Wynn Macau

and Sands China all seeing their share price tumble, but also the Mr Chau’s other interests including, Sun Entertain ment Group whose share price plum meted by almost 30%.Within a month Suncity closed all of its VIP gaming rooms in Macau followed swiftly by a complete closure of the business.

According to the official indictment Mr Chau’s Suncity junket operations en gaged in a number of activities that saw Macau lose out on gambling tax revenues in the region of $1 billion. One of these activities is described asdouble-sided betting (‘Tok Dai) taking place through various VIP rooms over a seven-year period between 2013 and his arrest in November 2021.

‘Customers have to pre-negotiate with the illegal gaming group through Sun City VIP Rooms betting with a private rate agreed upon with the illegal gaming group, thus, the customers’ bets on the gaming table multiply, consequently in creasing the client’s commissions.‘When the customer wants to bet 10k on the gaming table, he simultaneously bets 20k under the gaming table with the illegal gaming group….If the customer wins, the casino will pay him 10k and the illegal gaming group will also pay

him 20k. However, if the customer loses 10,000 of the bet, he has to pay the ca sino 10,000 and at the same time pay 20,000 to the illegal gaming group.’

In order to obtain more illegitimate benefits, the alleged illegal gambling group increased, in the name Sun City VIP Room, the commissions for “doublesided” side betting games, convincing customers to transfer the bet from the table legal for under-the-table betting, i.e. attracting customers to participate in “double-sided” activities.With such illegal activities, it tricked gaming con cessionaires/sub-concessionaires into delivering false information to the Ma cau SAR, which resulted in a loss of rev enue from the gaming concession to be collected”.

The charge sheet also cites a number of other allegationsincluding illicit phone and online betting revenues routed through front companies and under ground banks in mainland China into Suncity, and detail around the actions and role played by specific individuals, including those responsible for technol ogy.

Whilst China has made no secret of its position, the arrests last year and

emerging evidence as to the scope of the investigation has been the first real tangible evidence of how determined it is to crackdown on illegal gambling.

Unsurprisingly the Macau regulators had to step up their supervisory over sight resulting in a consultation process and a new gambling law covering eve rything from more robust regulation to government officials being involved in the supervision of casino operations and a reduction in the number of new casino licenses to just 6. The on-going re-licensing process has been spiced up by Genting, an operator previously deemed unsuitable to hold a licence, throwing its hat not the ring at the last minute creating a situation of 6 licenses and 7 applicants.

This is all taking place against a back drop of an order from China for Macau to ‘upgrade’ its national security legisla tion to the same standard as mainland China and Hong Kong. Whilst Macau has been relatively stable since the hando ver in 1999, Security Secretary Wong indicated that the new amendments would act as a ‘preventive’ measure fol lowing the social and political unrest in Hong Kong.

These changes will widen the defini tion of subversion to include both violent and ‘non-violent methods’ and obviously increase the powers of the police in investigating and addressing crime -but how might they actually impact the casino sector specifically?

Firstly, Wong indicated that:‘If there is no national security, there is no social stability and no economic develop ment’ and that ‘The national security of the country, and thus the security and stability of Macau’. This could be interpreted to mean that whilst the Macau regulator is happy to issue ca sino licenses the operation of those premises could be heavily influenced by the new security laws, especially as the new gambling laws have already created an open door to greater gov ernmental supervision on day-to-day casino operations.

Secondly, the upgraded security laws would apply to any individual in Ma cau or overseas who was perceived to be or linked to a ‘foreign threat’. Most of the casino operators come from outside mainland China. Given China’s hard-line stance on vice and arrest of Macau’s ‘junket king’ on the grounds of facilitating Chinese nationals to en gage in ‘illegal gambling’ and charge sheet that links illegal gambling to

money laundering and the transfer of funds from the mainland, how long before a casino in Macau, and by asso ciation its overseas owners, finds itself on the wrong side of the new law not through a breach of any gambling reg ulation but as a by-product of a wider socio-economic and political situation and the words ‘foreign threat, illegal gambling, subversion, money launder ing, criminal’, and assets and individu als seized?Hopefully never - but given current global tensions not something to be entirely discounted either.

Then there is also the wider impact of the new security law on the wider economy. Similar changes in Hong Kong saw massive impact on prop erty values, and a drain of expatriate and foreign workers. Given mainland China has been encouraging Macau to diversify away from gambling to things like tourism the impact may not be as severe overall, but there will almost certainly be a financial hit to be absorbed by someone if Genting is successful in its application for one of the 6 licenses.

The fact is that Macau has suffered enormously in the last few years. A combination ofon-going COVID re strictions (the latest being casinos hav ing to reduce the number of staff to

reduce risks of transmission), the new gambling law and China’s arrest of the biggest junket operator (and a lesson to all others) have seen gambling rev enuesfall away to almost nothing, and for many to predict that it is now game over for Macau.

Maybe. But maybe not. Whilst China has stepped in and radically changed the landscape of Macau it has not actu ally prohibited gambling. It has intro duced tougher measures and forced greater governmental involvement - but it has not prohibited gambling. This may be for a number of reasons. Certainly it will not have been blind to the fact that pre-pandemic gam bling revenues were 6 times bigger than Vegas. Nor will it be blind to the fact that it’s casino industry has been a key factor in attracting tourism (just like Vegas) making it a key part of any transition process to diversification. It will also not be blind to the fact that its citizen like gambling. A lot. We know prohibition does not work. Conse quently, maintaining a framework that allows its nationals heavily controlled access to gambling productsmay be a much more preferable alternative to the effort required to tackle illegal gambling on the mainland.

Right now keeping Macaua live and kicking is it is in China’s best interests. The market is aware of this, and an an nouncement by the Macau regulator that it is due to announce its shortlist of license candidates this week has seen stocks in SJM Holdings and Sands China rally.

Macau may be down, but it is definite ly not out.

Some 40 companies attended the 2022 WIG Diversity Awards, making it the largest gathering so far to celebrate the achievements within the sector.

The WIG Diversity Champagne Reception

A TIME TO MEET OLD AND NEW FRIENDS AND OF COURSE TO NETWORK WITH COMPANIES STRIVING TO ACHIEVE DIVERSITY & INCLUSION

FINALISTS, THEIR COMPANIES AND COLLEAGUES RELAX BEFORE THE AWARDS START

SETTLING IN AT THE SAVOY HOTEL BEFORE THE AWARDS CER EMONY AND ENTERTAINED BY THE SUPERB HOSPITALITY OF THE HOTEL.

Motivating & Inspiring Mindy Gibbins-Klein Talk

When you have such an inspirational speaker at the WIG Diversity Awards all the audience listens, Welcome Mindy Gibbins-Klein:

Mindy has delivered speeches and training on thought leadership to over 50,000 executives, entrepreneurs and experts in 18 countries. She also speaks in schools, colleges and universities to inspire students to become future thought leaders. She can speak and train in English, Spanish and French.

A Global TEDX and keynote speaker, she has written award winning books on Leadership, thoughtful Leadership and Leadership development.

Mindy delivered a very personal talk based on her own experiences in acceptance and understanding, not just in business but in life also.

Above Winner Sabine Mueller (right) – GAMOMAT - Industry Pride Award

Below Betsson Group - Best Diverse Place To Work Award

Let The Awards Begin

Above Winner Relax Gaming - B2B Excellence Award

Below Winner Rootz Ltd - Best Use of Technology

Above Company of the Year – (Supplier) went to Just for the Win Best in Community EngagementAll-in Diversity with Square in the Air

Winning an award Means

Above Employee Network of the Year - Eyecon

Above Employee of the Year – (Supplier) - Tatyana Kaminskaya (SOFTSWISS)

Right Winner HR Champion Award - Lorna Evans (Inspired Entertainment)

Above Excellence in Customer Service – (Supplier) - Team in Kyiv (Playtech)

And The Winners Keep On Coming, You are all Amazing

Above AwardAmie Foster (right) Group)

Above Industry Achiever Award –(Operator) Lori Peck (Bally’s)

Right Industry Achiever – (Supplier)Claire McDaid (Pragmatic Play)

Inspiring & Motivating Others

Right Winner Innovation in Employee Engagement - Betsson

Above Innovator of the Year- Christine Lewis (Yolo Group)

Every Winner was Applauded by all in the room

Above Kimberley Broad (Games Global) - Inspiration of the Year – (Supplier)

Right Annie Granham (Buzz Bingo)Leader of the Year (Operator)

Above Left Lisa Martin (William Hill)Inspiration of the Year – (Operator)

Far Left Malin Dahlman (ComeOn Group) - Positive Role Model of the Year – (Operator)

Left Linda Strålberg (Bally’s) - Star of the Future (Operator)

Top: Dolan

Above Josephine Hellström (Casumo) - Young Leader of the Year – (Operator)

Above Meri Nersisyan (Digitain) - Star of the Future (Supplier)

Right Winner Nicole Guilmoto (Eyecon) - Young Leader of the Year – Supplier

Singapore residents aversion to online gambling

By Ryan Murray

Arecent survey conducted by market research experts You Gov has revealed that the majority of Singapore nationals are resistant to embracing iGaming plat forms, regardless of the nature of the vertical in question. Indeed, whether in relation to sports betting or ‘games of chance’, a staggering 56% of the city-state’s population suggested they would support a policy prohibit ing the domestic presence of online gaming firms.

In YouGov’s overall rankings table, Singapore placed fourth highest for percentage of residents against iGam ing pursuits, tucked neatly behind fel low Asian countries China and India. However, their proximity to these na tions on the ‘leader board’ is perhaps somewhat surprising. Singapore’s slightly more relaxed, multi-cultural atmosphere is notably different from the environment Chinese and Indian citizens are accustomed to. The Com munist government in Beijing have long-held an anti-gambling stance, invoking a state-wide ban ever since Mao’s acquisition of power in 1949, whilst many of those on the sub-con tinent are subjected to a particularly profound level of traditionalist con servatism. Nevertheless, the Spanish

were found to be most opposed to online gambling, with a huge 57% of natives against its presence.

Interestingly, at the alternate end of the scale sits the United States and Canada, occupying two of the lowest four positions in the published chart. The percentages of those against iGaming in North America were therefore comparatively lower than the numbers tethered to the other sixteen-country strong participant field, with the U.S and Canada regis tering resistance figures of 33% and 41% respectively. Perhaps then, given that both countries have recently legalized the introduction of both online and bricks-and-mortar sports betting marketplaces (with, it must be said, a notable degree of success), there is a correlation between newly established gambling theatres and the volume of residents supporting this endeavour.

Drilling further into Singapore’s data allows us to understand the genera tional nuances in the investigation’s results. This revealing report, which also surveyed subjects on other considerations in the contemporary gambling space, such as the role of marketing, social responsibility mea

sures, and the post-pandemic retail industry, suggests that substantial differences in opinion exist between participant’s dependent on their respective birth year. Using standard ized generational parameters, the poll deployed four different age-spans to categorize those interviewed: Genera tion Z (born between 1997-2009), Millennials (1981-1996), Generation X (1965-1980), and Baby Boomers (1946-1980). The bandwidth in results was striking. Those belonging to the two youngest groupings, represent ing Generation Z and Millennials in the survey, were significantly less mil itant in their stance on online gam bling versus the overall average, with each sub-strata registering a percent age of those against its existence in the mid-40’s. Conversely, Generation X and Baby Boomers were far more unified in their reluctance to support iGaming endeavours, with around two-thirds of those questioned in these classifications highlighting their dissension.

Therefore, could it be legitimately be assumed that Singapore’s defiance is slowly crumbling as younger genera tions push against historic cultural norms?

Perhaps not. This conclusion maybe a little dismissive, but possibly also understandable when reviewing re sponses to an alternate question which featured in YouGov’s survey: ‘’To what extent do you agree or disagree with the following statement: ‘The rules and regulations around online gambling are generally too strict where I live’.’’

Amere quarter of the individuals vetted said that regulatory online gambling rules were too strict, which arguably portrays a desire to ensure operators are kept on a relatively short leash. Again, rather unsurprisingly, it was the Baby Boomer demographic who were most vocal about the need to curtail and closely govern the actions of casino and sports betting companies, with only 20% alleging that current guidance was overly demanding. Nevertheless, the largest proportion of those undecided on the degree of strictness within Sin gaporean legislative controls was also those born in the middle of last century.

Most importantly however, Millennials made up the largest contingent of those who disagreed that gambling laws were too intrusive, serving to undermine, at least to some extent, this concept of definite eroding opposition.

Whichever way the results of YouGov’s latest dip into the global gambling arena are interpreted (and there are various vantage points from which to scrutinize the data), it’s inarguable that huge swathes of Singapore’s approxi mate 5.7m inhabitants are generally against the provision of online gaming. However, this is perhaps expected when analysing these figures through the lens of the island’s cultural ratios. Indeed, despite being a state famed for ethnic diversity, catalysed by foreign business investment and a thriving ex-patriot community, an overwhelming propor tion of the population (circa 80%) are of Chinese or Indian origin. Therefore, if these citizens have any resonance with the lands their ancestors departed, it could well explain why Singapore’s resistance to gambling remains more pronounced than all other sovereign nations (with the exception of Spain) in cluded in the study.

So, what conclusions can we draw from the findings of the YouGov commis sioned, ‘Global Gambling 2022: The consumer view in the gambling debate’ review? Well, perhaps just tentative ones.

Yes, it’s fair to say with a heavy dose

of assurance that, if the data pool was stretched to a fully global context, the Republic of Singapore would likely have more online gambling critics per head than the international average. How ever, it’s also true that enough evidence exists to suggest that younger genera tions may in the future challenge the hegemony of this currently prevailing view.

Furthermore, although facilitated in a different trading environment, one should also cast an eye to the recent surge in activity surrounding the coun try’s land-based gaming estate. Sched uled development to the city-state’s two integrated resorts would suggest that operators understand there to be a growing local appetite for improved gambling facilities. Moreover, a speedy recovery towards pre-COVID revenue levels, far ahead of numerous other ju risdictions, also supports this concept of increasing popularity. This trend may take some time to wash through intothe digital landscape, with some residents perhaps a little fearful of the proven ad ditional risk of drifting towards harmful behaviours when using online betting applications. Nevertheless, in this con text at least, it feels like the navigation of Singapore’s entrenched societal and cultural resistance towards the gam bling industry is a process well under way.

Ultimately therefore, the survey will most likely confirm to domestic gam bling companies a truth that they al ready know: a decent proportion of Singaporeans are indeed averse to on line gaming. However, what may be of some considerable comfort to casino and sportsbook operators is that the winds of change are not only starting to blow, but they are swirling amongst the youngest demographics of the na tive population. Therefore, the mediumterm future looks set to be tangibly brighter than what some may have pre viously determined.

Philippines heading to an online gambling ban?

The Philippines’ iGaming sec tor has experienced some notable challenges in recent years. In particular, significant con cern has materialised in relation to the activities of POGO’s, (Philippine Offshore Gaming Operators), exter nally based gambling firms who have a licence to trade within the realms of country’s digital space. Such is the scale of their illicit behaviour, it’s virtually an open secret that many of these organizations have express links to criminal syndicates.

Now, influential politician Joel Vil lanueva, who was elected Senate leader earlier this year, has mobilized a piece of legislation that would spell the end for the island-state’s online gaming sector. Villanueva is steadfast in his belief that iGaming should have no place in Philippine society and suggests that its removal would serve to completely eradi

cate problem gambling, despite his plan permitting the continuation of bricks-and-mortar casino operations. The ban would be draconian in na ture, fixing heavy penalties to those who engage in any form of online play. It’s understood that those who would ignore the proposed guidance could serve a custodial sentence of up to six months and be fined up to PHP 50,000 (US$8,710), more than double the national salary average.

Nevertheless, if the undesirable practices of POGOs are strengthen ing Villanueva’s hand in discussions surrounding the online industry, then PAGCOR (Philippine Amuse ment and Gaming Corporation), the organization empowered to regulate the native marketplace, are working hard to undermine the Senator’s calls for change. Last weekend, PAGCOR rescued 140 foreign individuals from a mass kidnapping conducted by

a POGO, one of a string of fifteen similar incidents in recent months. Although there are less active POGOs than in previous years, largely due to a vicious cycle of crime and subse quent falling revenues, their threat remains a serious one.

Concerningly, Villanueva’s ‘AntiGambling Act’ is gaining traction in the Senate, with several high-ranking officials now endorsing this bill. However, the east Asian state’s politi cal chambers have resisted pressure to discard iGaming in the past, with neighbours China recently lobbying for a complete ban on POGO outfits.

ThePHP 7.18bn (US$149.3m) gener ated in GGR each year was enough to convince politicians to fend off Beijing’s advances – perhaps a similar response will see Villanueva’s cam paign put to the sword in the coming weeks.

Slot Management 101

How to ‘Improve’ your slots of problems!

By Andy Cosgrove

You defined, measured and analyzed your slots of problems but your boss is putting pressure on you to turn all your analysis paralysis into tangible results that add real value. It’s time to take action… or run for the hills.

In my previous article we focused on the analysis phase of Six Sigma which shows how to turn a practical problem into a statisti cal problem with the goal of find ing a statistical solution prior to implementing a practical solution. The Improvement phase is where your dreams of keeping all your bill validators accepting every single bill all of the time and time after time. It’s crunch time, time to earn you paycheck, time to exercise your trade craft, time to walk the walk, talk the talk and prove that you and your team are the best team for the job. It may also be time for your boss to say thank you for a job well done.

So, what more can you tell me

about the Improve phase? –Before implementing the final solution that will keep your bill validators running at an optimum acceptance rate, the improve phase starts with more ad vanced process modelling designed to Identify the vital few X’s (input vari ables) that are causing your custom ers to leave your establishment. Then comes experimentation which helps to optimize the X’s before simulating and validating your process improve ment. Finally, and the part you’ve been waiting for, is implementing theprocess improvement prior to the Control phase which is the final phase of the Six Sigma methodology. The key deliverables of the Improvement phase are as follows:

• Process modelling: regression

• Advanced process modelling: MLR

• Designing experiments

Process modelling: regression –Be fore regression comes linear cor relation analysis which is used to measure the strength of the associa tion between two variables known as X and Y, where Y represents the Output and X is the input. In casino talk, Y represents the bill validator accepting your customer’s bills and X is the dirt that makes your bill valida tor reject bills as a ratio of 9 out of every 10. Linear correlation analysis will determine the following:

• If the frequency of annual cleaning(X) increases and the accept ance rate (Y) remains the same, there is no correlation between cleanliness and the bill acceptance rate

• If you increase the frequency of an nual cleaning (X) and the acceptance rate (Y) increases, there is a correla tion

• The higher the correlation coefficient score (r), the higher the correlation between the frequency of annual cleaning and bill acceptance rate will be.

• The correlation scale starts at minus one (-1) which represents a strong negative correlation and plus one (+1) which represents a strong positive correlation.An ‘r’ score of between -0.2 and 0.2 means no significant correla tion.

Correlation ONLY tells us the strength of a relationship while regression

gives the mathematical relationship or the prediction model. The last step to proper analysis of continuous data is to

determine the regression equation. The Regression Equation can math ematically predict Y for any given X, for example, If you clean your bill validator twice a year instead of once, you should achieve a 50% better ac ceptance rate given the same amount of usage. Being able to predict future results based on existing sets of data (acceptance rate and cleaning frequency) will not only make your operation more efficient, but it may also make your finance department smile!

Advanced Process modelling: MLR – MLR stands for multiple linear regression, and where simple linear regression uses 1 input (X) and one output (Y) to predict results, MLRuses multiple inputs(X’s) to predict one

single output. MLRalso accounts for residuals that represent any varia tion that could be affecting your bill validators from operating at a higher acceptance rate. Putting it simply, MLR produces a much more accurate prediction model for moving you closer to bill validator Utopia. The fol lowing two inputs (X’s) could be used as part of your prediction model for a higher bill acceptance rate using MLR

• Input (X) number 1 =cleaning fre quency

• Input (X) number 2 = number of games played

• Output (Y) = Bill acceptance rate

Designing Experiments–Now that you’ve identified the vital input X’s that are making your bill validator not accept bills it’s time to put your theories to the test by using designed experiments. The desired results of experiments are as follows:

• Problem solving – to eliminate defective products or services

• Optimizing – mathematical process is desired to increase the bill accept ance rate

• Robust design – to provide consist ent bill validator performance and designing processes while knowingly understanding which variables are difficult to maintain

• Screening – necessary when there is limited past process data or when statistical conclusions prevented the optimum performance of you bill validators

Design of Experiments (DOE) shows the true cause and effect relationship of the Input (X) Output (Y) of interest. The DOE Methodology includes the following:

1. Define the practical Problem (low bill acceptance rate)

2. Establish the experimental objec tive (improve bill acceptance rates)

3. Select the output (Y) and Input (X) variables (bill acceptance rate (Y)

cleaning frequency (X))

4. Choose the levels of the Input variables (a 2 level test could involve a cleaning frequency of 1 time per month and another of 1 time per year)

5. Select the experimental design, ex ecute the experiments and collect the data (experimental design depends on the amount of input(X) variables being tested such as cleaning fre quency and games played)

6. Analyze the data and draw statisti cal conclusions

7. Draw practical conclusions and replicate or validate them(to minimize the affect of any unhidden bill valida tor headaches!)

8. Implement Solutions (success).

Graphical DOE is achieved via Interac tion plots which make results much more obvious and present them in a way that even the casino manager might understand!

Conclusion – Over 80% of projects will realize their solutions in the ana

lyze phase but Designed Experiments can be extremely effective. If you’re confident with your solution at the end of the analyze phase, then stop but if you have doubts, use designed experiments to help you over the finish line. What’s important to re member is that the sole purpose of a Six Sigma project is to eliminate your poor bill validator acceptance prob lems and transform it into a solution that you, your team, your custom ers (and maybe even the marketing manager) can be proud of. Coming next time is the Control phase which is the final phase in the Six Sigma methodology.

Andrew Cosgrove is a seasoned slot operations veteran and certi fied project manager with over 24 years of hands on experience in Latin America and the Caribbean. Andrew has worked on both the operator and supplier side of casino slots and is available to help you succeed and ex ceed customer expectations via con tracted consultancy services. Andrew can be reached at andy.cosgrove@ henimgwaycasinoconsulting.com or seehttps://hemingwaycasinoconsult ing.com/

California’s sports betting chances hang on a knife edge

By Ryan Murray

For many interested spec tators, it seems entirely implausible that California is yet to have a legalized sports betting marketplace. The highest populated U.S state, with the strongest financial leverage in the country, is currently uncharacteristically missing a colos sal commercial opportunity.

Since the overriding of the archaic PASBA legislation by the Supreme Court in 2018, a consistent wave of state-level legislative activity has served to induct over 30 jurisdictions to sports betting. This in turn has pre-empted a bountiful return for U.S and foreign-based sportsbook operators. The federalized govern ments who have presided over this landmark change in the nation’s approach to gambling are an as sorted bunch, with cultural heritage or political tradition seemingly not a huge influencer in whether a state decides to embrace this new vertical. This perhaps makes California’s ex clusion from the market all the more remarkable. If typical, conservativeleaning communities in the likes of Wyoming, Kansas, and Arkansas can stomach this significant recalibration of an American tradition alist view, how have the famously left-leaning, progressive Democrats of California not conspired to create

a thriving sports betting industry of their own?

The answer is relatively simple, but somehow also incredibly complex to unravel.

Ultimately, the sheer scale of a prospective Californian market has just been too difficult a cross to bear. Indeed, a fierce battle has ensued in the Golden State, as various suitors, armed with proposals and measures on how they would facilitate localized sports wagering efforts, lock horns.

Their reward for winning this contest is access to a huge financial treasure chest, perhaps unprecedented even in the lucrative early days of America’s nascent sports betting landscape. In its opening eight months of trading, New York’s sportsbook operators have taken over $10.35bn in handle, supporting them to generate close to $800m in gross gaming revenue. It’s alleged that a fledging Californian theatre would invite even higher sums, and in turn would overtake the Empire State in becoming the nation’s most lucrative betting powerhouse. The stakes have simply been too high.

For months, various factions have squabbled over who should govern the state’s native market, with various tribal interests, commercial giants,

and card room operators all fighting for supremacy. Now, after a protract ed and particularly bruising skirmish between potential stakeholders, just two candidates are left standing. The competing measures of these parties will be put to the Californian elector ate in the second week of November, as residents determine the conclu sion of this saga at the ballot box. However, which, if any of the propos als, will the majority of voters opt to support?

Proposition 26, which confirmed its place in Autumn’s referendum over twelve months ago, is a ven ture chiefly sponsored by the state’s native tribal groups. The ‘Coalition for Safe, Responsible Gaming’, is collectively backed by no less than 58 tribal entities. Their subsidiary campaign, colloquially referred to as the ‘No for 27’ movement (the proposition number of the opposing measure), has earned the support of a number of key local organiza tions, such as the California State Association of Counties and the California League of Cities, along side a host of teaching unions and political exponents. Although their motiveforjoining forces withthe coalitionis perhaps more rooted in their resistance to Proposition 27, as opposed to supporting any initiative

that promotes the introduction of gambling, these groups have un doubtedly added further credibility to the Proposition 26 cause.

If successful, the proposal would per mit the establishment of retail sports betting facilities at tribal casinos and state race tracks. Through historic gaming compacts, Indian operators have long-held the ability to offer clas sic table games and slots from sites located on government-granted res ervations. Therefore, in this sense, the integration of sports betting through this legislative mechanism would feel more like simply adding an extra verti cal, as opposed to having to re-invent the wheel from scratch.

The proposed legislation states that a standard 10% tax levy on revenue would be applied, with funds re-di rected towards problem gambling support programmes.

However, if the Coalition for Safe, Re sponsible Gaming is focused on using more traditional, in-person methods to accommodate the arrival of legal ized sports wagering, then Proposi tion 27, otherwise known as ‘Califor nians for Solutions to Homelessness, Mental Health, and Addiction’, is all about embracing a new, perhaps more glossy,virtual approach. Indeed, one of the key differentials between these two conflicting campaigns lies in the operational space in which they would both exist. Proposition 27, which is largely bankrolled via the deep pockets of several of North America’s most powerful sports betting firms, advocates the introduction of online sportsbook applications. If success ful, this would mean that Californian players would have uninterrupted ac cess to markets via their smartphone, in turn removing the requirement of travelling to a casino and wagering in the flesh.

Their proposal demands that prospec

tive operators pay an eye-watering $100m license fee to have the privilege of running a digital sportsbook, sup plemented by a $10m annual renewal fee. Although the role of commercial organizations is largely overlooked by the Indian coalition, Proposition 27 permits tribal interests to collaborate with the likes of DraftKings, FanDuel or BetMGM to create a locally acces sible mobile sports betting platform. However, the measure is very much re served for the big boys of the business, such as the early industry pace-setters referenced above. Indeed, in order to hit the bid’s qualifying criteria, any market participant must already be active in at least ten other U.S states. As a consequence, should the ‘Califor nians for Solutions to Homelessness, Mental Health and Addiction’ manage to establish their hegemony, smaller sportsbooks would need to latch onto the coattails of those with a nation wide presence via partnership agree ments.

Given the financial and membership profile of the two contrasting tenders, many initially assumed that Proposi tion 27 would leverage its considera ble strength to move well ahead of the Indian-backed alternative. However, this prediction is far from an accurate reflection of the current, ground-level reality, with the ‘No for 27’ campaign managing to locate and subsequently chip away at its opponents particularly fragile Achilles heel.

Indeed, ironically, the largest chal lenge facing the ‘27’ contingent is a product of the nature of their incred ibly successful commercial approach. Many across the local community, in cluding independent organizations, politicians, and vocal residents, believe the group’s aggressive and unrelent ing pursuit of profitwould comfort ably supersede any commitment to wards social responsibility initiatives; a narrative that the Coalition for Safe, Responsible Gaming have cultivated

Gaming

well in recent weeks. Even anti-gam bling protesters have aligned them selves, given their shared distain, with the proponents of the Coalition’s measure, perhaps now viewing Propo sition 26 as the lesser of two evils.

Furthermore, opponents have at tacked the seemingly contrived nature of the Proposition 27 campaign. They believe that the measure’s full legis lative title is in itself an illustration of how far commercial operators are pre pared to go in order to secure profits and establish supremacy. The coalition asserts that dropping in terms such as ‘homelessness’, ‘mental health’ and ‘ad diction’ is a clever marketing ploy in an attempt to curry favour with the Golden State electorate, and acts as a smokescreen to their true money-driv en motivations. This tactic, perhaps aimed at chiefly floating voters,seeks to convince that the proposal is in fact an altruistic enterprise, and therefore something that could be mutually advantageous to all parties; the bet tor, the operator, and the suffering. Few have fallen for this rather cyni calmethodology, with many, not just those whose allegiances lie with the coalition, questioning the integrity of Proposition 27’s charitable dimension.

In the words of Los Angeles Times journalist Michael Hiltzik ‘the gam bling firms are all public-spirited in their way, but do you really think they care about the crises of homelessness in California as opposed to drinking deeply of the potential profits from online gambling in the vast California market? Me neither.’

True, a quick scan over the numbers certainly suggests a lack of credibil ity. The ‘Californians for Solutions to Homelessness, Mental Health and Ad diction’ would clearly generate their donations to these causes via the de ployment of their proposed taxation framework. Yet, charges on participat ing operators have, like Proposition 26, been positioned at just 10%of their

total gross gaming revenue. Not only does this mean that a colossal chunk of bettors’ cash would remain in the bank accounts of most of the conti nents’ most successful sportsbooks, but it would also result in California presiding over one of the lowest tax rates within the United States’ legal ized sports betting arena. The two most highly taxed markets, New York and Pennsylvania, set rates at 51% and 36% respectively, whilst only a tiny handful of states have introduced rev enue taxes at 10% or lower.

Furthermore, there’s some plausibility in claims that these charitable causes have been selectedthrough a populist lens, unashamedly seeking to manipu late what’s currently ‘in-vogue’. This is because, with very little research or engagement of the topics identified as the most suitable for investment, the conspirators behind Proposition 27 would have noted that local Gov ernor Gavin Newsom has already an nounced an enormous support pack

age in these areas. The $12bn pledged over the next two years dwarfs the anticipated figure delivered by the proposed sports betting tax rate, and would indeed add just 4% to News om’s already costed commitment.

Even from a purely crude perspec tive, the chosen causes are somewhat of a headscratcher in the context of contemporary Californian politics. Most residents, particularly given that Newsom’s scheduled spending plan already supports most of society’s most vulnerable, would have most likely preferreda charity programme focusing oneither more ‘progressive’ concepts, such as green energy solu tions and water conversation, or cur rent, contentious local issues, such as school funding or aid for domestic abuse victims.

PTO

There’s also merit in the theory that the mental health care element is largely a contradictive endeavour. Many believe that this ‘solution’ is a loosely-veiled reference to problem gambling support, meaning that those requiring medical intervention would have likely developed harmful behaviours through using the very platforms of those throwing dollars at their recovery.

Unsurprisingly, these developments have conspired to seriously damage the chances of a Proposition 27 vic tory. However, that’s not to say that its plucky counterpart is likely to earn the 51% majority required in order to have a mandate for industry control.

The unprecedented marketing cam paign, which has seen both sides of the contest contribute to a recordbreaking $364m advertising spend, has given an opportunity for commer cial operators to utilize their pre-exist ing connections to TV networks and sports teams. Through these channels, they’ve been able to bloody the nose of the Coalition through their consist ent presence in advertisements, mag azine shows, and across the jerseys of leading sports franchises, without

quite landing a knockout punch.

Yet, regardless of the tactical point scoring, playground-style feuds and grotesque campaign expenditure, the current reality of the situation is this: the analysts now believe that neither side will emerge with over half of the electorate’s backing. Shockingly therefore, it looks increasingly likely that we’ll not see sports betting in the largest, and most affluent state in the country, for another year at the very least.

Indeed, experts believe that having twoproposals, both focused on the same industry and promoting, at least to the normal Californian on the street, relatively similar guiding principles, will cause confusion, apathy and dilu tion at the ballot box.

True, in a general sense, having two possibilities to choose from will always serve to reduce the overall likelihood of one earning an outright majority. Thus, by extension, this undermines the chances of any type of sports bet ting sector materialising as a product of November’s vote. Therefore, in the best interests of ensuring California fi nally embraces the newly-established

presence of American sportsbooks, the most diplomatic action for those with no horse in the race would be to tick the box of each rivalling camp. However, for those who have tracked this momentous battle, the polarizing nature of the campaign trail will likely have compelled most to pick a side.

Furthermore, it’s the first time in U.S electoral history that competing sports betting measures feature in the same referendum, and therefore the traditional, ‘single up or down’ system is replaced by having voters select one, two, or neither option(s). Ana lysts, such as those based at the influ ential Eilers&Krejcik Gaming research centre in southern California, believe this dynamic will create a sense of am bivalence, and discourage the elector ate from properly reviewing each pro posal. When residents stand with pen in hand at the booth, this may easily propel some to spoil their vote, rather than opt for a route they may later regret. Indeed, Eilers&Krejcik Gaming say they are now ‘leaning negative on California’s sports betting legalization prospects this fall’.

So, could one of the most heated con tests seen in the primitive history of legalized U.S sports betting result in defeat for two valiant competitors?

If so, it would be the first time that a state-wide referendum on gam bling would have failed to deliver a positive outcome, with Arkansas, Colorado, South Dakota, Louisiana, and Maryland all successfully push ing through legislation at the polls. Unfortunately,as per the scale of fund ing invested in this intense fight, it looks as if defeat at the ballot box may be another record-breaking act that California’s sports betting suitors will have to endure.

Web3 and NFT mini roundup

NFTs (non-fungible tokens) are everywhere, in the daily news, no matter where you look online, the adoption of NFTs are spreading on a global scale, with no end in sight, whether it is articles on Web3, or ticketing for events, or in fashion articles, there is just an endless stream of news around the various use cases for NFTs – even FIFA have launched an NFT platform for soccer-themed digital collectibles on the Algor and Blockchain in the run-up to the World Cup later this year. I expect this will expand the accessibility of NFTs even more, as presumably they will feature memo

By Lynn Pearce

rable moments and imagery around all the soccer games, capturing the highlights for sports fans throughout the games.

They are not the only ones moving ahead on the Algor and blockchain –one of the original music streaming companies, Napster, (which many of us have forgotten about) announced their planned move into the Web3 space with their $Napster token. Ac cording to an article written by Sujith Somraaj in June 2022, Algor and made news when they partnered with Limewire and launched a music-cen tric marketplace featuring the works

of artists signed on Universal Music Groups label. The artists, including Travis Barker, Brandy and Nicky Jam, will launch exclusive artwork, music and fan experiences, as they transi tion their platform from a peer-topeer filesharing website to an NFT marketplace.

Even Mercedes and McLaren have got into the NFT act. Mercedes-AMG Petronas F1 Team together with FTX released free-to-claim NFT “Ticket Stubs” as well as unique and rare NFTs created by some of the world’s leading artists.

The British luxury supercar - McLaren’s Automotive announced the launch of their MSO Lab, which will house limited-edition McLaren NFTs and their first release, The Genesis Col lection, showcased one of their most well-known automobiles.

In March 2022, Crypto.com an nounced it would be the FIFA World Cup’s exclusive exchange sponsor, apparently ditching their $495 mil lionsponsorship deal with UEFA, most likely in order to take up this deal.

When I read a short while ago that the south Korean electronics giant, LG had launched its own NFT market

place, called LG Art Labs into the USA market, for television owners running webOS 5.0, I knew that the NFT trend towards mass adoption was about to explode, in my humble opinion. The marketplace enables them to buy, sell and trade NFTs from their own homes – this is going to be big.

According to the recent article on Decrypt, the Solana NFT project y00ts got off to a really great start, topping secondary markets as the creator NFTs sold for a significant premium over the mint price.

And let’s not forget about my all-time favorite – Sorare, the web3 startup

who played a major role in spearhead ing NFTs and digital collectibles, in cluding NFT-based fantasy soccer and MLB games and who have now taken on NBA Top Shot with the upcom ing launch of an official NBA fantasy basketball game, which will co-exist with the Dapper Labs Top Shot and the NBAs own The Association Project. This exciting initiative, (created in partnership with the NBA and NBPA), allows the NBA to continue its push into web3 with a platform that will let users collect cards based on pro players from the league and to enter leagues that provide card rewards to top performers on the platform.

Having been fascinated about NFTs, from a creator perspective since I first read about non-fungible tokens, I have joined many communities, both online and locally offline. These are generally friendly and helpful places to find out anything and everything about NFTs and the trends that are developing and those projects that have come to fruition, plus, I get to learn something new every day, including the arguments for and against the use and widespread adop tion of NFTs.

One of my favorite communities is Veefriends, led by Gary Vaynerchuk’s idea of building a community using NFTs ad smart contract technology, which is quickly developing into one of the strongset and largest commu nities in Web3. VeeFriends is a collec tion of 10,255 NFTs, all hand-drawn by him. Another community I follow, for obvious reasons, is the popular World of Women, a collection of 10,000 NFTs representing strong and powerful

women and minted on the Ethereum blockchain. This project is led by the artist Yam Karkai with the mission for inclusivity in the Web3 space, creating opportunities for women and diverse creators.

NFTs are everywhere – with the fash ion industry being one of the early adopters, as NFTs create unique digi tal assets that cannot be replicated – and coupled with their real-world assets, increase the value exponen tially. According to Abimbola Abe, a writer who documents his journey with web3 and NFTs, this was very well demonstrated by D&G with their recent sales of a crownwith diamonds and a digital NFT version of the same crown as part of its groundbreaking “CollezioneGenesi” which sold for an eye-popping $6 million.

Forbes launched their fun and fabulous 100 Billionaires NFTs in April 2022, so even if you did not make the list, as a subscriber to Forbes, you

could still join the virtual fun on the “next best list” as an owner of the Forbes Virtual NFT Billionaires collec tion – such a cool idea!

I believe the NFT trends will continue towards mass adoption, as the NFT utility can be used as evidence of ownership, to bring people together in diverse communities, for rental purposes, ticketing for events, all manner of purchasing opportunities in gaming and other industries – the technology is available to us and we are only limited by our own imagina tion, as the scope of potential applica tions is amazing!

Read more from Lynn Pearce every month exclusively in the Infinity Gam ing Magazine.