June/July 2015
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Editorial: Editor in Chief: Glyn Thomas Mob: +380 952 705 596 glyn@ace123.com Associate Editor Asia: Bill Healey bill@ace123.com Associate Editor North America David Mckee dmckee@ace123.com Special Assignment Correspondent: Jack Bulavsky jackbulavsky@yahoo.com N Europe - Damien Connelly dconnelly@ace123.com UK: Alan Campbell alancampbellcasinolife@gmail.com International Casino & Gaming Correspondent: JJ Woods jjsilks@eircom.net Technology Correspondent: Rebecca Green rebecca@ace123.com Slot Editor: Lucien Wijsman lwisjman@ace123.com
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Editor’s page Welcome to Casino Life...
Apologies for a gloomy start but overall it’s been a bad month all round with people leaving us far too soon, as partly reported elsewhere in the magazine. As I write this I’ve just heard about Peter Mead from CEM passing away and that is on top of the sad news last week about my friend Peter Bodell. As anyone who met him would testify, Peter was a man with a sparkling sense of humour, charm and a generous spirit; I still have the exclusive gold membership card for the VIP National Casino in Moscow after all these years. He formally handed it over in the middle of a crowd of industry giants. The room went quiet and he winked as he said: “I hope you realise you can’t apply to be a member here– you are chosen.” He then added lowly me to the official list of celebs such as Jose Carreras and Roger Waters who had had the fortune to meet him and become exclusive members. I also remember him bailing a group of us out of the clutches of armed militia at 3.00am at a chilly -20, but that’s another story. The reason that these untimely events shock is because they happen so early to people we know. They are sometimes colleagues and friends who share our interests, our passion for the industry. They know what it’s like to be part of this rollercoaster ride from the Lada taxi with no floor to the handshake with Mike Tyson. But, on reflection we should not be that surprised. The industry we love is founded on stress, late nights, endless flights and a generally unhealthy environment – and that eventually takes its toll. This is perhaps the message to us all – to take stock. Our lead story this issue is the Mohegan Sun and quite rightly. Everyone knows it’s a major concern but were you aware that it has more than 10 million visitors a year and generates the highest gross gaming revenue for any single property in the Western Hemisphere? Me neither. Interesting also that for its first major overseas expansion it has its eye firmly on South Korea – with an initial development phase costing $1.6 billion. Impressive. This edition also contains one of our regular Technology in Casinos supplements where we have exclusive Guest Editor comment from James Boje Managing Director EMEA, Aristocrat Technologies, followed by an interview with Gavin Isaacs President & CEO, and Ken Jolly, VP of Scientific Games Asia. Back to the main edition we have an interview with Marcus Prater President of AGEM followed by part 2 of the Mark Wayman, interview, Founder and CEO of The Foundation, LLC who gives out some more advice to those seeking better employment elsewhere. Meanwhile, Robert Ambrose urges us to “Stop training and start educating!” Have a differing view on any of my ramblings? Want to be interviewed and put your venue on the map? Then please drop us a line!
Glyn Thomas Editor in Chief
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Contents 1
Editors Page
4 Ready for Global Expansion Interview with Mr. Bobby Soper, President of the Mohegan Sun Casino. Steve Karoul 12 New Life Coming To Casino Floor Jack Bulavsky chats to Marcus Prater, Executive Director of the Association of Gaming Equipment Manufacturers. 16 The Great Million Dollar Candidate – Part 2 Damien Connelly interview with Mark Wayman, Founder and CEO of the executive placement firm The Foundation LLC. 18 A Call for Evidence Based Policy Luc Delany, International Social Games Association CEO, responds to Peter Naessens’ article published in the May issue of Casino Life 20 In memory of Tony Jackson 21 In memory of Jens Halle 22 Creating a social media policy for your casino – Part 2 Why Every Casino Business Should Have One. Rick Campbell 26 Stop Training! Start Educating Employees – Part 1 A community of employees working within an educated team environment. Building the Team. Robert Ambrose 27 21st Century Casino Destination Resorts Are today’s casinos doing what is best for the customer? By Victor H. Royer Technology in Casinos 1 Guest Editor Comment James Boje, Managing Director EMEA, Aristocrat Technologies 2 “Now It’s Time To Grow The Organization” Gavin Isaacs, President and CEO along with Ken Jolly, Vice President of Scientific Games Asia, spoke to Peter White during G2E Asia 7 Experienced Operators Glyn Thomas talks to François Bourlier, Western Europe Sales Director, Win Systems 13 Alfastreet Gaming: Building On Solid Foundations Alan Campbell chats to Albert Radman, Sales Director, Alfastreet Gaming Inc. 16 Virtual Reality Could be Financial Sanity for Future Casinos Jeff Lande, Founder of Lucky VR, speaks to Damien Connelly 21 Gaming Products and Diversification Craig Askins, President of Gulf Coast Gaming, talks to Peter White 26 Spotlight Rebecca Green
Editorial Policy: The views and opinions expressed in Casino Life remain principally the views of contributors and do not necessarily reflect those of the editor or publishers. The publishers wish to avoid inaccuracies and, whilst every precaution has been taken to ensure that information contained in this publication is accurate, no liability is accepted by the editor or publishers for errors or omissions, however caused. Unless otherwise stated, articles appearing in this publication remain the copyright of the publishers and may not be reproduced in any form without the publisher’s written consent. Printed in the UK by MPC Ltd.
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Ready for Global Expansion Interview with Mr. Bobby Soper, President of the Mohegan Sun Casino. Steve Karoul
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Bobby, thank you for your time today to be interviewed by Casino Life Magazine. Many of our readers around the world follow the progress of most of the major casino companies in the world. The Mohegan Sun Casino is the second largest casino in North America size wise but also one of the highest revenue producers as well. Can you please tell us a little more about the Mohegan Sun Casino and about other entities also owned by the Tribe? Steve, it is my pleasure. Mohegan Sun, which first opened in 1996, is home to three casinos which, in aggregate, house one of the largest slot floors in the world with 5,500 units along with 300 table games. In addition, Mohegan Sun includes a 1,200 room luxury hotel tower and spa (with a new additional 400 room tower under construction), a world class golf course, over 30 restaurants, 130,000 square feet of retail shopping, 100,000 square feet of convention and meeting space and numerous nightlife amenities. Our property has more than 10 million visitors a year and generates the highest gross gaming revenue for any single property in the Western Hemisphere. However, notwithstanding its success in gaming, we consider the property more of an entertainment-driven resort, with three distinct entertainment venues, one of which is ranked the third busiest arena in the world for its size (10,000 seats) and eighth busiest in the world for any size. Our property in Northeast Pennsylvania, Mohegan Sun Pocono, opened in 2006 and has been a huge success, significantly outperforming our own projections and the Commonwealth’s initial projections. Along with a gaming floor of 2,500 slot machines and 80 table games, it includes 6 restaurants, several nightlife venues, the country’s fastest harness race track, and a recently added 240 room hotel and convention center. We also have a small equity ownership and management contract to manage Resorts Casino in Atlantic City. Since we took over the property 2 years ago when its owner, Morris Bailey, made a sizeable investment in the property, Resorts has moved from an operation generating negative EBITDA into a profitable operation last year, with continued escalation in profits this current year. You have a very interesting background career wise. We understand that you actually are a lawyer who
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Mr. Bobby Soper, President of the Mohegan Sun Casino
merged into the casino industry. Can you please tell us a little more about yourself and how your background as a lawyer has been able to help you in your casino career? I started my career as in-house counsel for the organization in 1997. In that capacity, I was involved with the transactional work associated with the financing, design-development and various other transactions related to our billion dollar expansion project which opened in 2001. Also, as part of my responsibilities I had the opportunity to work with most of the divisions within the company, helping me become familiar with the operations prior to being appointed as a Senior Vice President at Mohegan Sun in 2001. In 2005 I was appointed President & CEO of our sister property in Pennsylvania, where we opened the first casino in the Commonwealth. Subsequent to that, I had the opportunity to move back to CT to serve as President/CEO of Mohegan Sun in 2012. When Mitchell Etess decided to retire this past year, I moved into my current role as the President of our parent company, the Mohegan Tribal Gaming Authority (MTGA). My entree into the gaming world through law allowed me to be exposed quickly to
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many diverse operational areas of the industry. In addition, my legal background comes in handy with the significant amount of complicated transactions that occur in a gaming environment. Mohegan Sun has been extremely aggressive in their pursuit of new business development opportunities over recent years. Do you feel that this is a good thing and if so, why? Our efforts to diversify our business are not only important, but we believe they are essential in order to accomplish the Tribe’s goals of longterm economic sustainability. As the gaming industry has become far more competitive and markets have become more saturated, we need to mitigate risk through geographic diversification and product diversification. Our gaming company, MTGA, currently has a presence in Pennsylvania, Connecticut and Atlantic City, and we have a significant amount of other efforts underway. I would not be surprised if we find ourselves in five or more other jurisdictions in the next ten years. In addition, the Tribe, through its own business development initiatives outside of MTGA, has pursued a number of non-gaming initiatives,
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including several restaurant franchises, wood pellet manufacturing and an office technology solutions company. While still in the early stages, these efforts have been quite successful. Everyone has been very intrigued reading about your possible new casino venture overseas in Korea. Will this be your first international expansion opportunity? Can you also tell us more about the new casino project in Korea and why it was so appealing to you to undertake such a large expansion overseas as opposed to here in the United States? While we have previously looked at various development opportunities outside of North America, this is the first opportunity we felt compelling enough to pursue. As the closest gaming jurisdiction to Northern China, including the cities of Shanghai and Beijing, there are over 700 million Chinese residents within a 2 1/2 hour flight to Seoul. Accordingly, the market has significant potential. We have teamed up with the Incheon International Airport Corporation (IIAC) to develop over 800 acres at the Incheon Airport. What will ultimately be a $5 billion USD development, the
first phase of the project will cost $1.6 billion USD and will include a two tower luxury hotel complex, 20,000 square meters of premium retail shopping, an indoor-outdoor amusement park, a 20,000 seat entertainment arena, a Korean cosmetics and beauty hub, 19,000 square meters of gaming space and the first and only private jet terminal in the world connected to an integrated casino resort. Not only is Incheon one of the busiest airports in the world, but through the efforts of the IIAC, Incheon Airport has been ranked the top rated airport in the world for the last 10 years, reflecting similar values of our organization in focusing on the guest experience and quality. In addition, we also believe the Korean government’s vision of tourism via the Integrated Resort concept is consistent with our brand as an entertainment driven company. Simply put, Seoul will be the tourist hub of Northern Asia, and Incheon Airport is the perfect location to serve as the gateway to this tourist hub. We also know that the casino industry in the State of Connecticut has been challenged in recent years by the expansion of casino gaming in surrounding States. We have heard about a very
creative and innovative solution to help combat market deterioration which may also turn into a new revenue producing opportunity for both the Mohegan Sun Casino and for the Foxwoods Casino. Can you explain more about what this opportunity may consist of and how it actually came about pertaining to the three new co-managed casinos to be located along CT borders to help “defend the fort” per se and stop market erosion? Recently, legislation was passed (SB 1090) and signed by the Governor, which in its final form authorized the Mashantucket Pequot Tribe and Mohegan Tribe to jointly open one satellite gaming facility in the State of Connecticut. Our intention is to develop a facility that will reflect the first class brands our properties are known for at a location that allows us to protect our existing market in Connecticut. More specifically, the property will be located somewhere in Northern Connecticut near the border of Massachusetts where the future Springfield property is located. Over the next several months, we will issue an RFP to select a site, enter an agreement with the host municipality and move forward with construction after the agreement is approved by the legislature. Our goal is to be up and
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running in 2017--well before the Springfield casino is open. This is a great example how two Tribes that operate competitive facilities can come together with a unified interest to mitigate the impact of competition, along with the cooperation of the State which also has an interest in ensuring that jobs and tax revenue in the State are protected. You are a relatively young president for a major Gaming company. Many of our readers are often interested in learning from our industry leaders such as your-self. If you were to give advice to someone just starting their career in the casino industry today what would that advice be? A successful career in the Gaming industry undoubtedly requires the basics--hard work, flexibility and a willingness to learn and expose yourself to various elements of the operation as much as possible. Throughout my career, I have been lucky and fortunate to have had opportunities presented to myself fairly quickly. As I have learned, you simply never know when your next opportunity will become available, so it is critical that you have done everything possible to be ready when it does. Perhaps most importantly to achieving long-term success, and what the previous leaders of this organization taught me through their example, is the significance of relationships and the most important values of leadership: objectivity, humility, respect, and trust with respect to your colleagues, team members, partners and all the people you deal with. In an industry with many experienced leaders, these are the traits, in my view, that differentiate the good leaders from the great leaders. Steve Karoul is a recognized casino consultant with over 36 years of hands-on experience with the best casinos both within the United States and internationally. He is also an authority on all aspects of casino marketing. Steve has lived in numerous countries and has conducted casino marketing activities in well over 100 countries around the world. He also monitors Poker, online Poker and online Gaming around the world. He is an author, a lecturer and an educator who often injects his own hands-on experiences and openly shares his ideas and thoughts with fellow industry executives. Telephone + (1-860) 536-1828 or skaroul@comcast.net or see www.euroasiacasino.com
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New Life Coming To Casino Floor Jack Bulavsky chats to Marcus Prater, Executive Director of the Association of Gaming Equipment Manufacturers
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arcus Prater is Executive Director of the Association of Gaming Equipment Manufacturers (AGEM), a non-profit international trade association representing manufacturers and suppliers of electronic gaming devices, systems, table games, online technology, key components and support products and services for the gaming industry. AGEM works to further the interests of gaming equipment suppliers throughout the world. The current AGEM membership roster, 143 companies strong based in 21 countries, is a who’s who of the supplier segment of the global gaming industry. AGEM is a sponsor of the Global Gaming Expo (G2E), the preeminent international
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gaming industry trade show and conference held annually in Las Vegas. Jack Bulavsky, Special Assignment Correspondent for Casino Life in Las Vegas, caught up with the busy Prater for a conversation concerning the future look of slots on the casino floor. The Nevada Legislature recently passed Senate Bill 9 that was initiated by AGEM. The bill allows for variable-payback percentages in slot machines. How did all this come about? Over the past few years, there have been conversations and interest about skill-based gaming and games with arcade elements. AGEM has been aware of this and when the opportunity presented
itself, we moved on it. That opportunity occurred when Nevada Governor Brian Sandoval convened a committee last year to conduct a study on the impact of technology upon gaming. AGEM was asked to participate along with other organizations. We polled our membership and asked what they would want technologically that is not currently allowed under Nevada law. The overwhelming response was to have the ability to allow for variable-payback percentages in slot machines that would enhance the player experience by bringing true skill-based gaming, arcade-game elements, hybrid games and other unique features and technologies to the casino floor for the very first time. However, that required a change in Nevada law. AGEM took that one recommendation and submitted it to the committee who, in turn, forwarded it to the state legislature for review. That was in January. By the end of the legislative session in late May, Senate Bill 9 was signed into law by Gov. Sandoval as part of his platform to keep Nevada as the world’s gaming technology hub. The Nevada Gaming Control Board and the Nevada Gaming Commission are now leading the process of writing and promulgating the rules and regulations that will guide this innovative new direction. AGEM believes it will inject new life into the slot machine segment of the gaming industry. The process is moving along and I expect it will be done in the next several months. When completed, this will give manufacturers the blueprint to develop these new games and already, there are some game designers ready to go with a variety of new ideas. Do you expect new slot product reflecting this change to be shown at G2E 2015 in Las Vegas? That’s difficult to answer. You may see some conceptual games that conform to this new landscape and I do know that several AGEM members are already there and will be able to discuss the games and the law. However, it’s going to take time. I see skill-based games submitted for approval possibly later this year, but as far as a selection of products from the bigger slot companies, that will come in 2016. Nothing is going to happen overnight. It will be a little here and a little there with slot operators treading carefully on how and when these new games are introduced. No
one knows how players will react. It’s going to take some time before we really know how this entire process plays out or how unique it may become. This could be a giant step forward for game manufacturers and for gaming operators. Can you put it into perspective? We have seen the gaming experience become extremely prevalent among those who have a smart phone or tablet or who grew up playing Xbox games or EA games. All this skews younger and so the marriage of these games with a gaming component will create an environment that we never even contemplated, not even five years ago. The sky is the limit in terms of the type of content that can be put onto casino floors and how operators market these games.
The Nevada Gaming Control Board and the Nevada Gaming Commission are now leading the process of writing and promulgating the rules and regulations that will guide this innovative new direction Furthermore, once the rules and regulations are written and in place, they are considered the gold standard for everyone else as Nevada has a history of taking the time to do it right when developing gaming law. Did you meet or consult with major casino operators? We met with representatives of the Nevada Resort Association. It’s the first AGEM has ever collaborated with the NRA and its Board. They
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ultimately endorsed it. Operators have their own ideas, yet they are excited about this. In the U.S., slot revenues across the country are flat and the slot machine demographic is aging. Everyone recognizes that something needs to be done. We know that visitors to Las Vegas are trending younger and spending money in places other than casinos or on slots. So this seems to be the right path we’re taking at the right time. Don’t you believe this slot change could be considered revolutionary? Yes I do. Not only that, but also evolutionary. Taking popular games from the tablet environment and putting them into a casino environment will be very interesting. And then there are arcade games that go back decades that can be re-introduced for a new audience. So these games that many of us grew up with will now have a gambling aspect. Now keep in mind that not all the games are worthy of being a gambling game, but many can be transformed over time. Let me give you an example. Variable-payback percentages would, for example, give all players a base game with an 88 percent payback. But if you’re particularly skilled at shooting down enemy planes in the bonus round or outracing your friends in a road rally, you could boost your payback to 98 percent with the blended overall payback selected by operators falling somewhere in the middle. For the first time, players will know they can have a material financial impact on the outcome of the game.
Marcus Prater is Executive Director of the Association of Gaming Equipment Manufacturers (AGEM)
Taking popular games from the tablet environment and putting them into a casino environment will be very interesting. And then there are arcade games that go back decades that can be reintroduced for a new audience
This has to be a real feather in the cap for AGEM? Time will tell, but right now it could be AGEM’s top achievement and it fits with what members have been asking for. Let’s talk again in five years and see where everything is. AGEM looks to improve
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the overall financial and business environment of our industry and this could be monumental. That’s because no jurisdiction in the world allows for true variable-payback percentages. This is beyond transformative.
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Left to right, Julia Boguslawski (Chief of Staff, Scientific Games), Mark Wayman, Christy Stevens (President, Hearts Alive Village animal rescue), Wendy Anderson (Chief of Staff, BMM Labs)
The Great Million Dollar Candidate – Part 2 Damien Connelly interview with Mark Wayman, Founder and CEO of the executive placement firm The Foundation LLC
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y name is Mark Wayman, and my 15 minutes of fame was two software companies. One went public on the NASDAQ and the other (counterterrorism software) was acquired by IBM. For the last ten years I have owned an Executive Recruiting firm focused on gaming and high tech. Compensation starts at $100,000, and last year I placed eight executives north of a million dollars.
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This is Part 2 in my series about what makes a great million dollar candidate. It’s funny how so many candidates say, “Oh, I don’t need that. I’m a great candidate.” My response is, “No disrespect, then why are you unemployed?” The truth is that 80% of candidates don’t get hired because of the exact situations I describe in this series. Wonderful, highly talented executives that either don’t understand the hiring process or make rookie mistakes. Here we go!
Mark Wayman is the Founder and CEO of The Foundation, LLC, an executive placement firm focused on gaming/casinos and high tech. He has placed 600 executives over the last ten years, with compensation packages from $100,000 to $2,000,000. Last year he placed eight executives over a million dollars. His articles appear on The Huffington Post, and he is a regular on the Internet radio show Casino Talk. Mark is an active supporter of Make-AWish, Opportunity Village, Olive Crest and a dozen other local and national charities. He can be reached at mwayman2@cox.net, or for more information, go to www.godfatherlv.com
Everyone Loves Happy, Smiley People – Only children whine…and even then it’s not attractive. A significant percentage of executive candidates that approach me are angry and bitter. Mostly because they got fired or laid off. They blame it on their old boss, the company, their parents, their spouse, their kids, their dogs. Let’s make something perfectly clear – bitter is not attractive. And interviewers will pick up on your bad attitude in 60 seconds and the interview will be over. Had a candidate that was a great fit for a CIO role. During the interview process the CEO said, “How did you end up here when you were in Dallas for so many years?” The candidate responded, “I was involved in a nasty divorce. Let me tell you about it.” I kid you not. You can’t make this stuff up. Let it go! The day you left your company and your boss stopped caring about you. They don’t care about you. Why should you obsess about it? Million dollar candidates have happy, well-adjusted attitudes.
Don’t Be The Smartest Guy in the Room – Hubris is not attractive, and make no mistake, big egos are a major challenge with million dollar candidates. The interview is not a competition where you convince the interviewer you are smarter than Bill Gates. Your intent should be to help the company understand how your education and experience relates to their job role. If you alienate the interviewer, even if they are an HR Generalist, they won’t move you forward in the interview process. I remember one candidate that was one of three finalists for a huge job. He emailed the CEO of the company, “As you know, I’m much smarter than the other two guys, so I know you will pick me and I look forward to working with you.” True story. Million dollar candidates are humble and genuine. The World Has Changed: Be Realistic on Compensation – Top candidates are realistic about compensation. Every once in a while I hear, “You know, I used to make a million dollars back in the day.” Guess what? That was then, this is now…the world changed. I regularly see executives chasing compensation and end up unemployed for a year. Some never worked again. I had one candidate at $400K that ended up out of work for two years, then took a job for $200K. Remember this, when you are unemployed…all jobs are good jobs. Companies want to hire gainfully employed executives. Be realistic about compensation or you could end up on the beach for a very long time. Interview by Damien Connelly
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A Call for Evidence Based Policy
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Luc Delany, International Social Games Association CEO, responds to Peter Naessens’ article published in the May issue of Casino Life
n the May 2015 issue of Casino Life (pages 32-33), Peter Naessens of the Belgian Gaming Commission raised the subject of underage social gam(bl)ing, citing the case of a 15 year old boy who lost more than €20,000. What follows is the response from the ISGA’s Luc Delany. Let’s take stock It doesn’t take much to see the prolific growth of social games. Games like Candy Crush and FarmVille are a part of our everyday entertainment. Inevitably, success has led to a more saturated western market. Many investors’ eyes have turned to Asia which accounted for 80% of market growth in 2014. As the market in Western Europe has matured so has the policy environment. We have guidance on responsible use of in-app purchases from consumer and advertising regulators across Europe. The UK Gambling Commission (UKGC) was one of the
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first gambling regulators to look into social games. In January 2015, the commission concluded its three year scoping and found “no compelling reason” to impose additional gambling regulation on the sector. Key factors cited include: • The consumer protection legislation which already regulates social games; • The absence of “cross-marketing” to convert players to real money gambling from social games; and • The absence of evidence that social games are a cause of gambling. Despite an increasingly well informed global policy environment, misunderstanding, myth and hypotheses about the use and impact of social games has continued. They can be summarised as follows. Firstly, the failure to recognise the extensive consumer regulation that already governs the sector. Secondly, the
claim that social games are a cause of gambling in young people. These misunderstandings were highlighted in Peter Naessens’s piece on social games in last month’s edition. The risk is a call for disproportionate regulation, which would remove social games from the established pan-European regulatory framework proven to protect consumers. Tackling overspending Social games are based on the freemium or “free-toplay” monetisation model — meaning that access and play is free, with certain additional and special features available for a fee. This business model, already established across other sectors, did catch some parents and children unawares leading to criticism and regulatory scrutiny. In plain terms, some children were overspending without their parent’s consent. Concrete action has followed. In 2013, the European Commission launched a review of concerns surrounding in-app purchases, which involved consumer regulators across Europe. At the same time, the Commission published extensive guidelines for developers and platforms based on existing European consumer protection law. The action concluded in July 2014 citing real progress. A positive outcome of media and regulatory attention is that it has driven improvement. Platforms now provide extensive parental controls to limit in-app purchases expenditure. At the ISGA, we updated our Best Practice Principles, designed to uphold industry responsibility amongst social games businesses, to incorporate the EC’s guidance. So what should we take from all of this? Firstly, that comprehensive guidance now exists for social games businesses and the platforms they operate on. Secondly, that this is fundamentally a consumer protection issue. It is about fair, clear and accountable commercial practices — not “social gambling.” Advertising and consumer regulators have recourse to a fully harmonised framework of directives that cover social games as an “information society service.” E-Commerce, Consumer Rights, Data protection, E-Privacy and Unfair Commercial Practices amongst others. We also need perspective. Incidences of heavy spending in games are no higher than in other goods and services. As the UKGC has observed, although games developers should not be “complacent” about the “people at the extreme” spending large amounts of money and time, “the vast majority of social gamers spend very modest amounts of time and money.”
Dispelling social casino myths As readers are no doubt aware, social casino games offer no real money rewards and have no requirement to pay to play. As is typical of all types of social games, the vast majority never make an in-game purchase. There is simply no evidence that these games cause young people to gamble. In the first place, social casino games are renowned for appealing to older and middle aged players. There is extensive industry and independent data verifying this. Last year we granted a research team access to a large-scale data snapshot of our member’s social casino games covering in excess of 12 million players. Only 0.74% (90,665) of players were found to be under 18, and only 0.56% (505) of this group paid to play. This means that out of the total pool of players (12m), only 0.004% were paying under 18’s. The UKGC undertook their own major data research, which generated similar findings. The minute number of under 18’s playing, let alone paying to play, these games must put serious doubt on any claim that social casino developers aim to “exploit” young people. Secondly, there is no evidence that social games have increased gambling activity. For example, in the UK recent gambling behaviour reports show that rates of underage gambling participation have actually declined in the UK between 2007 and 2014. This is of course during a period when the social games phenomenon has skyrocketed. There is also no evidence that social games are a cause of problem gambling. The risks of gambling style regulation It is worth briefly considering the consequences of gambling style regulation for our sector for games developers and players. Social games in Europe are covered by established pan-European regulation. Steps that make it harder to access games will drive consumers away from responsible social games businesses, which properly comply with consumer protection standards. Classifying social games as gambling raises many unanswered questions. Which games are in or out? Does any game partly based on chance fall in or out of given regulatory regime? Who decides this? Virtually all games use a range of chance and skill and many of the most popular titles are primarily chance based. Finally, we should not forget that today’s European digital economy is increasingly inter-connected. If developers leave, tech investment is likely to follow.
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Tony Jackson How will Tony Jackson best be remembered?
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t could be as a founder member and supporter of CHIPS, the gaming industry’s foremost charity which benefited for many years from his guidance and financial expertise. Or perhaps as the combative, highly knowledgeable witness in any number of British Magistrate’s courts, supporting an application for a 1968 Gaming Act casino, or on the other side of the debate, assisting an objection to a similar application. Perhaps as a competent and qualified Chartered Accountant, representing a number of established casino companies as a Finance Director. Or maybe as a profoundly knowledgeable industry expert assisting individuals or businesses trying to understand the vagaries of the UK Gambling Regulations. However the industry remembers him he will have touched many within it. Better however that he be remembered as Tony, helpful, friendly even avuncular to some, always ready to volunteer knowledgeable advice and someone who was just great personal company. Funny when the mood took him, full of amusing anecdotes, many of them based on his personal experiences, frankly just one of the good guys, a memorable character who will be sadly missed. 18th February 1938 – 14th April 2015
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Jens Halle’s Novomatic Years
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he tragic and untimely passing of Jens Halle came as devastating news to many of the 22,000 plus employees around the world of Austria’s NOVOMATIC Group. ‘Devastating’ because Jens had been a close colleague of many and a good friend to many more. ‘Devastating’ that Jens, a man with a big personality and a big heart to match, should be taken aged just 57 as the result of heart failure. The gaming industry uses the words ‘icon’ and ‘legend’ excessively but, in the case of Jens, he was just that. A legend of business professionalism, with a track record of success lasting more than three decades, and also an icon of humanity and caring for others. From his arrival at NOVOMATIC, from Bally, in 1999 Jens’ career trajectory rose quickly, helped to no small degree by the rapid expansion of gaming in Russia and Eastern Europe. But Jens was also blessed with the human touch and he gained and maintained the respect and friendship of many at all levels of NOVOMATIC,
from the shop floor to the very top. As the success and expansion around the world of NOVOMATIC grew so too did the success and reputation of Jens Halle. By nature a born sales executive Jens was an exponent of fair and honest dealing. His word was his bond and his handshake at the conclusion of a deal was as binding as any formal contract that would follow. The growth of NOVOMATIC around the world, in Europe, Africa, Latin America, Asia and in North America stands as tribute to his excellence as a ‘deal maker’. Jens helped, and in many cases made, the careers of many around him. He believed in trust and would give anyone a chance. That built a climate around him of loyalty and commitment and many had just cause to be grateful to the big German with a heart of gold. As was expressed so well at his recent Memorial event held in Florida gaming people around the world celebrated his life with the words ‘Rest in peace, Jens, and shine brightly forever with the stars.’
Marietta condolence thanks: Via this publication, our heartfelt thanks for the love, support and many, many messages of condolence that were received following the death of my husband and Jordi’s father. The international gaming industry truly is a family. To those that were able to join us at the Hard Rock Casino in Florida, as well as the many more that joined us in spirit to celebrate the life of Jens and mark the many contributions that he made to that family, we send our gratitude and our warmest wishes.
In particular we wish to pay special thanks to Jens’ many friends and colleagues and new friends at Merkur Gaming and specifically to Paul Gauselmann who was, and remains, a tower of strength in our time of need. Thanks to you all. Jens will remain, forever, wherever and whenever the gaming industry meets, in our hearts. We love you Jens. Marietta and Jordi Halle.
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Creating a social media policy for your casino – Part 2 Why Every Casino Business Should Have One. Rick Campbell
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ast month we discussed some of the reasons why a casino business should have a social media policy. This month we continue our discussion on social media policy, why every casino business should have one and how to begin the process of creating your social media policy. Separate Overall Policies from SiteSpecific Guidelines The social media landscape changes every day. If your policies are narrowly focused on a specific social media site, they will be out of date pretty quickly. There are thousands of social media sites. In general, the policy should focus on the big picture: who does what (roles and responsibilities), a general overview of how they can/can’t do it (legal compliance and branding, for example) and why we do it at all (purpose and values). This applies strongly to the casino properties that believe that Facebook, Twitter and LinkedIn are the only sites for social media. Many properties are adopting the definition that social media is any site that the public can openly express an opinion about your property; this includes sites such as Yelp, Foursquare, Tripadvisor, etc. Separate written guidelines can be created to record the specifics of a certain social media site. These guidelines help tremendously in the case of employee turnover. The process of drafting guidelines also helps employees to better understand and explain what their expectations are how they engage on social media sites. Don’t Reinvent the Wheel
It’s likely that you already have many internal policies in place that apply to social media activities. This includes policies about privacy, photo consents, Internet usage, cell phone usage and many others. You can reference these policies in your social media policies, taking special note of any differences in application that may be necessary with social media. For example, your cell phone usage policy may not currently discuss the use of photos from cell phone cameras. Thanks to geo tagging, photos taken by cell phones almost universally contain digital coding which betrays your exact location on the date and time of the photo. If you upload a photo taken by a cell phone camera to your social media sites, you might be giving away more information than necessary. Depending on the jurisdiction of your casino, you may want to include in your social media policy, the policies of the gaming commission regarding photos being taken on the casino floor. A social media policy might take this into consideration by requiring staff to use software to strip the photos of geo tagging information before the photos may be posted. Make sure to include in your policy the consent of winners being announced on your social media sites. Include External Regulations Most legal regulations (including HIPAA, FERPA, fair employment, etc.) are in effect online as well as offline. Use the social media policies to remind employees that
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these regulations must be adhered to. Where possible, give explicit examples of what types of behavior are not acceptable. (This is a good time to think through your compliance training. Social media is affecting just about every aspect of our lives and businesses. If your training on privacy, confidentiality, branding, etc., don’t currently discuss social media, it’s time to start including it.) Create Two Policies It is considered a best practice to have two social media policies: one for employees using social media for their job and one for employees using social media in their personal lives. The first policy, focusing on job-related activities, should cover everything that has been discussed here: defining your team, articulating roles and responsibilities, branding guidelines, and becoming clear about what internal and external policies must be complied with. The second policy, focusing on employees using social media in their personal lives, should give employees information about what they can and cannot say about your company on their personal site. Each casino will want to be very specific about what employees are not allowed to share online. For example, trade secrets, client information and even employee whereabouts might be kept strictly confidential. Other organizations will want to encourage employees to act as brand ambassadors. Some even go so far as to provide guidance as to how to talk about the company online. However you’d like your employees to discuss (or not discuss) your company online, give them guidance. Two words of caution: 1) It is dangerous and not recommended to require employees to use their own personal social media accounts to connect with your casino online. They may choose to do so, but let that be their choice. The last thing any manager wants is to learn more about an employee’s private life than he/she needs to know. 2) Before you write the policy, reread the Legal Ramifications paragraph above. It may save you a lot of headache down the road. Emphasize Education The boundaries sometimes between our personal and professional lives are blurring. Most employees haven’t fully realized the challenges that may develop as a result of decreased privacy. The old saying was, “What
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happens in Vegas, stays in Vegas.” Today, a more accurate statement is, “What happens in Vegas, stays on Facebook and Youtube.” It seems that many of the court cases on social media arise out of ignorance, not malice, on the part of the employee. Many employees haven’t fully thought through the consequences of their cyber-behavior. By providing cyber-safety education to their staff, employers are preventing problems before they start. Just as your casino property has two policies, one for job-related activities and one for employees using social media in their personal life, employee education can also take two tracks: • Provide job-related training to staff engaged in social media on the organization’s behalf. Ongoing, regular training helps keep your organization current and gives staff an opportunity to network with others in the field. • Educate all staff on Internet safety. This education might include how to protect ourselves from cybercrime and how to establish and protect our online reputation. When it comes to responsible cyber-behavior, employers have a unique opportunity to educate rather than mandate. This commitment demonstrates respect for the employees. Employees feel valued, trusted and inspired. Everyone benefits. Ask a Lawyer to Review the Policy Legal advice is critical. It is easy to misstep, especially in the areas of labor relations. Make sure you ask an attorney who has experience in the area – your HR Director may not have all the answers to a policy. Legal review can be expensive; however, a lawsuit would be exponentially more costly. Don’t Let Your Social Media Policy Collect Dust The cyber-environment changes frequently. Social media policies should be reviewed at least every six months. Let everyone on the team review the policy separately and then together. Ask yourselves, is this still relevant? Does this help us do our jobs? How has the social media environment changed recently? Are there any legal updates that apply? Policies are not the most exciting part of social media; however, if the policies are developed well, they can support, empower and engage the staff as they in turn engage your current and potential customers.
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Stop Training! Start Educating Employees – Part 1 A community of employees working within an educated team environment. Building the Team. Robert Ambrose
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ithin the model of today’s hospitality industry there is a variety of property amenities that are a collective part of the presentation. Separately they each offer an experience and a unique set of operational challenges; whether it is dining, entertainment, retail, lodging or gaming. Collectively they come together as one brand for the customer as the total property experience. Within the property experience fusing this brand identity together are teams of employees. These employees are educated to operate on the same company message of excellence as they approach the customer from separate hospitality disciplines. Presenting consistence excellence is not easy. But if successful, a truly great guest experience can be created. Hospitality is an industry built on people, with principals and guidelines for both customers and employees rooted deeply not only in the liberal arts but also a business formula consisting of operational balance, fundamental business applications and strategic marketing initiatives. Team Building Those Employees: In team building a consistent educational philosophy of empowerment should be presented to employees.
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This will set the tone for a great work environment and educate the employees about the company culture. It is not just about “training” these standards, but rather defining them as an educational culture and how it relates and impacts the company bottom line. I use the term education instead of training; because in educating employees, they receive a learning experience for extended long term growth. They are shown the cause and the impact of their action or inaction. Simply training them will provide skill sets to accomplish short-term goals; many of which are soon forgotten. Educating the employees as to what is behind the scripted message is the learning philosophy. A successfully learned hospitality culture will transcend as energy from the employees framing the beginning for a positive guest experience. Next Issue: Executive Role and TEAM Building Robert Ambrose Instructor Gaming & Hospitality Center for Hospitality & Sport Management Drexel University The Dennis Gomes Memorial Casino Training Lab Rja73@drexel.edu Twitter@bobambrose http://www.drexel.edu/hsm/
21st Century Casino Destination Resorts
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Are today’s casinos doing what is best for the customer? Victor H. Royer
erhaps the bigger question should be: Do casino executives actually know what happens to customers in their casinos, and resorts? Two simple questions, or so it seems. But without simple answers. So – what would be the simplest answer? The fact is that casinos sometimes do the best for their customers – but not always – and not very consistently. And yes, casino executives do mostly know what happens, but usually not everything and not all the time. Casino executives mostly work 9 AM to 5 PM. But casino gamblers usually only play outside of these hours. At least those that are the serious players, and not the nickel-and-dime tourists. And this means that they – and their needs – are almost always ignored, or misunderstood, by the very top-level executives who make decisions impacting them, and their play. And, as a result, also the bottom-line profitability of the casino resort itself. So, the question then becomes: What does actually happen to the customers who provide most of the revenue? Well, they tend to be largely ignored, misunderstood, misclassified, and not rewarded.
Yes, it’s more complicated than this, but it’s a fact. A sad fact, maybe, but a fact nonetheless. A few years ago, I read some articles in a magazine called: “The Casino Critic”. I remember them now, because I have recently again been involved in helping my casino clients with operational and customer service issues. In these old articles – as best as I can now remember – there was an unidentified writer who “profiled” a specific gaming property, or several properties, and offered some ratings regarding performance in some specified categories. In one of those articles, the “casino critic” profiled a property in Las Vegas. The words used by that anonymous writer in that article critiqued that property as “sepulchral”, “mass-heavy”, “cavernous”, “huge and oppressive” and “mega-artificial”. And a lot of other similar-style words. What struck me as highly curious in that article, and in others which preceded it, was that little or no mention was ever given to the core issues of casino operations. No mention, nor ratings, were provided about the effects which that property had on its customers. It was as if that “casino critic” was looking at the property from the “executive eyes”, instead of the “customer’s’ eyes”.
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In real terms, and in real dollars, who cares if the property seems “sepulchral”, “mass-heavy”, “cavernous”, “huge and oppressive” or “mega-artificial” to a gaming executive, or a “casino critic”? What matters most of all is what the property looks and seems like to its customers! Yet, there are rarely any mentions of the key issues of concern to the customers – as these apply directly and specifically to casino and gaming resorts. Particularly those of the 21st century – those multi-billion dollar behemoths that now dominate the casino resort landscape. Is the seating comfortable? Is there horrible blaring noisy music coming from the overhead speakers? So loud it’s deafening? Louder on the decibel scale than the sound of a jet engine directly next to your ear? Seems far-fetched? Not so much – visit any number of Las Vegas “modern” casinos, and you’ll go deaf before you make it through the front door! Are floorpersons and attendants responsive in the slot department, or do the customers have to wait for long periods of time for service? Did the customers receive cocktail service in a timely manner, or did they have to wait an hour or more before they saw their first server? Were the bill acceptors on the machines functioning properly, or did the customers have to try numerous times before the machine even accepted the currency? Were table game dealers rude, or were they friendly, helpful and appreciative of the customers’ patronage? Did the on-the-floor-employees know about the facilities, and details pertinent to their jobs? Was there a Slot Club? If so, was it a good deal for the customer, or was it “stacked” against the players? Was it open 24/7 so that the best players – those who play at night – could get at their points and gifts? How many dollars in play does it take for the customers to earn a point? What do these points buy, and how easily are they redeemable? Is the reservations process painless, or do customers have to wait in long lines while a group of employees huddle together elsewhere and pay no attention to guests? Is the VIP services section truly one which sets it apart from the regular grind, and makes the casino’s valued guests feel truly valued? Are the rooms comfortable, or do they contain a multitude of annoying features such as noisy air-conditioning units, doors that slam noisily, or drapes which don’t close properly? And no blackout drapes for the all-night players? Does the housekeeping staff wake up guests who gambled all night and now sleep all day regardless of whether the guest has a “do not disturb” sign posted? And so on and on. In our standard reports we answer over 600 questions of this nature, as well as others. In fact, we have over 4,000 such items, obtained directly from the players and guests at casino resorts. As well as answers and solutions.
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Each of these reports contain many pages of information and statistics crucial to efficient and customer-friendly gaming operations, and a multitude of solutions to ever-present and constant problems. Problems which the customers faces on each and every visit. Problems which are easily remedied. Problems which cost the casino millions of dollars a year in lost and unrealized revenue. Problems, issues, and solutions, which most “casino critics” – and on many occasions also the casino executives – have entirely overlooked. The core problem for casino executives is the fact that they do not readily receive correct and accurate – and timely – information about the real issues of concern to their customers, and how these issues impact their employees and their employees ability to perform at optimum levels. All of this directly results in a huge monetary loss to that gaming operation, not only in casino drop, but also in ancillary revenues, such as hotel, restaurants, and other amenities such as entertainment. It is a completely inter-dependent package, and it all starts, and finishes, with the customer. Without the proper focus on customers and their actual needs – as opposed to what the casino executives often “think” are their needs – no casino or gaming resort will, or can, remain profitable. Yet, time and time again, gaming executives seem to overlook these “details”, in the same manner in which most casino critics or “mystery shoppers” also overlook the core issues. Looking at any gaming operation through “executive eyes” invariably results in a clouded view. It is simply not possible to see “from within” that which can only be seen “from without”. And compounding these incomplete perspectives by acting on inaccurate and incomplete information, or ignoring small details, consequently results in lost revenue, the cumulative amounts of which are staggering. At my company, we have profiled virtually all the major gaming operations throughout the United States, including numerous smaller resorts, as well as tribal operations, and even Canadian operations. What we do for our clients is to strip away the fog, and provide a clear, unvarnished, uninfluenced view of what really happens to customers whose patronage contributes directly to the bottom-line profit, or loss, for that gaming company. And that is the true value of any “casino critic”, even though what we provide is far less a “criticism”, and far more a valuable insight into how to make more from what already exists. Victor H. Royer is President of Gaming Services & Research and can be reached at: DrVHR@aol.com
arena berlin 20 – 22 / 10 / 2015 Excellence in iGaming
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