May 2014
Absolute Casino Entertainment Mohegan Sun
Editorial: Editor in Chief: Glyn Thomas Mob: +380 952 705 596 glyn@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 Latin America & Asia Correspondent: Janice Chaka Janice@ace123.com International Casino & Gaming Correspondent: JJ Woods jjsilks@eircom.net Online Gaming Editor: Sam Miranda sam@ace123.com
Production: Designer: Stewart Hyde design@ace123.com www.totaldesignworks.com Subscriptions: Helen Holmes subs@ace123.com Web & IT: Sudip Banjeree sb@ace123.com Journal Manager: Chris Sanson csanson@ace123.com Publisher: Peter White Tel: +44 (0) 1892 740869 Mob: +44 (0) 7973 273714 pwhite@ace123.com
Editor’s page
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elcome to Casino Life. “May you live in interesting times” is a Chinese saying that seems more than appropriate as I head off soon for Macau leaving behind my newly born twins in my newly built house. When I return I’m hoping that my Russian neighbours have not invaded and my Country of choice will have a new president. Yes. Interesting indeed. Also interesting is the way we continue to hook up with some big hitting casino executives throughout the world. The casino industry is all about people and the message that we are trusted and publishing a magazine for casinos - not hosting old news continues to spread. And this opens more doors. SLS are the talk of Las Vegas at the moment and we have a cracking insight into plans for the North end of the strip. Their plans are ambitious, they stack up financially and deserve to succeed. Everyone loves a winner and we interview one of the biggest in the business. Tom Cantone is an industry legend – heading up the Mohegan Sun, North Americas second largest casino and as SVP for Entertainment of all MGTA casino properties he is now known as “the most important booker of entertainment in the Western Hemisphere. He talks to Steve Karoul about how entertainment is an integral part of the casino offering – how it drives volumes and your casino brand up to dizzying heights. The electricity virtually crackles on the page. Finally, a quick mention to our Technology in Casinos focus where my favorite product at ICE, the Novomatic Biometric System, comes under the spotlight. Damien Connelly visited the trial site in Vienna and was as equally impressed as I was – let’s hope it rolls out soon. Damien also took time to head up to Seven casino for the IGT Avatar launch. Finally, we are pleased to announce that our support for the Gaming Training & Development courses at Drexel University has been acknowledged by Bob Ambrose. We have been made a partner of Drexel University Centre for Hospitality and Sports Management. We wish the staff and students every success for the future. http://drexel.edu/hsm/resources/industry-partners/
Glyn Thomas
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Contents 3
Guest Editor Sabby Gill Senior Vice President International Sales at IGT
4 The Man Who Revolutionized Casino Entertainment Stephen Karoul talks to Tom Cantone VP Sports and Entertainment Mohegan Sun Casino 12 SLS’ Big Gamble Rob Oseland and Sam Nazarian are betting that the North Strip isn’t dead. By David McKee 15
Global Cash Management Glyn Thomas chats to James Boje SVP EMEA - Retail, Financial and Gaming for Crane Payment Innovations.
20 The State of Gaming in New Jersey By Frank Catania 22 I. Nelson Rose Cuba Needs Casinos 25 Universal Appeal Glyn Thomas chatted to Dr Amable C. Aguiluz IX CEO Johnny Rockets Philippines Technology in Casinos 1
Guest Editor John Connelly COO at EyeOnTheAction.AG
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Secure your credit with a scan Damien Connelly visited Novomatic’s pilot Biometric Systems site in Vienna
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Avatar by IGT Launches in France Damien Connelly visited Seven Casino for the French launch of Avatar
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Looking to the Future Alan Campbell spoke with Jon Lancaster Executive Director International Sales for WMS Gaming
16 20 Years of Entertainment Chris Sanson speaks to Alfastreet Albert Radman ahead of 2014 G2E Asia exhibition 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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Guest Editor
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elcome to Macau, a destination steeped in equal parts rich history and unbridled optimism about the future. Many have speculated that this gambling mecca represents the next fertile ground for the evolution and transformation of gaming. When we try to define what makes Macau so enticing and exciting, we’re reminded of the huge opportunities that it presents. Look how far Las Vegas has come in a relatively short amount of time, evolving from its straightforward table gaming and rat pack roots to a city that defines and defies the unlimited possibilities of entertainment. The same potential holds true for Macau, and the greater gaming market in Asia. We’re seeing promising examples of casinos and players fostering deep levels of connection and engagement. Slot machines are delivering unprecedented levels of excitement and entertainment that compare favorably to any other casino experience. At IGT we’re taking great care to develop culturally enriched content that resonates with players, while we’re even further evolving the landscape by implementing advanced and robust systems that elevate the player experience with dynamic customization capabilities. Add to the winning game content equation, progressive links that unify and connect the collective chance at great fortune, and the bold vision of the future of gaming in Macau is materializing before our eyes. Never before has there been more diverse entertainment potential here, and the momentum is rapidly accelerating toward even further advancement and innovation. It all starts with the players. By watching, listening, and interacting with players on relevant terms we understand what defines excitement here. In today’s small world, I believe we will find that the great experiences we create for Asia will not be contained here, but rather will resonate globally as we continue to deliver the catalysts that make players say “wow!” I know personally that IGT is primed to amaze and advance, as we make our mark on this unique opportunity in the history of our business. We are lucky to work together in this industry to create and shape the entertainment experience. I encourage you to make the time to stop, play, engage, and delight. We are fortunate to be in the business of fun.
Sabby Gill, Senior Vice President International Sales, IGT
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The Man Who Revolutionized Casino Entertainment By Steve Karoul 5
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asino entertainment is an often misunderstood area within today’s modern casinos. I was recently able to catch up with Tom Cantone at the Mohegan Sun Casino which is the second largest casino in North America today. Tom Cantone is one of the nation’s top entertainment marketing executives who has been a leading trendsetter in the entertainment, resort and casino industry. He was just voted G2E’s Entertainment Executive of the Year this past year in Las Vegas, and is stacking up awards these days for a reason. Most recently the Academy of Country Music Awards will present him with two unprecedented awards in Nashville in September for Casino of the Year. He has revolutionized how to market casino’s today with key Event Driven tactics. But it all started many years ago when Cantone broke the traditional casino entertainment programming by doing away with Vegas style acts and introducing American Pop Culture into casino marketing plans. Venues Today magazine said it best – “Tom has honed a highly effective marketing strategy that has helped change the entire casino industry”. I asked Tom what is the driver that makes him appear to know how to market today’s casino? Tom said, “I have always believed that whoever knows how to drive volume should be the person running modern casinos today. Put people first, meaning your team and your customers, with today’s hottest artists and you win the day – every time. And, the cool thing about this is, you don’t have to be the biggest casino on the block to do it. At the Sands in Atlantic City, we were one of the smallest properties on the Boardwalk, but we became the Borgata of our time with how we marketed our brand to the next generation of players”. Cantone’s innovative use of entertainment during his tenure as the marketing head at various casinos differentiated those casino brands from all the rest. It was a new strategic strategy that leveraged the hottest
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names of their day. “There is no age restriction when you bring in American’s Pop Culture to a casino near you.” Everyone wants to be young and be where the Event happens.” “Making memories is the by- product of what casinos actually produce. All casinos basically offer the same products: slot machines, table games, hotel, name restaurants, spas, claims of customer service but what separates you from all the rest is the ‘Personality of the Brand’. And that is driven by high profile entertainment events that everyone talks about instantly now on social media. You can book an event that will be communicated around the world in seconds and sold out in minutes. People will know your brand by the people you book which best defines you. The end result is Event Driven volume.” They actually do all the marketing for you. How cool is it to ride the marketing coat-tails of the biggest names on the planet without spending a fortune to do it. Social media changed all that. I’ve booked shows where I didn’t spend a nickel. Traditional advertising is almost gone. Roger Gross, Publisher of Global Gaming Business Magazine said of Cantone – “If you wanted to name one guy who changed casino entertainment, and made it sexy and hip to play a casino, that would be Tom Cantone”. Some of Tom’s more unique Event Driven marketing coups were the only reunion of The Sopranos at Mohegan Sun after being off the air from their historic HBO run as the highest rated show in TV history. Sadly, it was the last appearance with James Gandolfini and the cast together. Cantone started the first ever meet/ greet events with The Sopranos while at Foxwoods Casino in CT. Stevie Van Zant wrote: “The Sopranos cast appearances that Tom started were as groundbreaking for the casino as the show was for TV”. Tom also got Al Pacino to make his only casino debut in a special one man show called One Night, where one of America’s most famous movie stars decided to do his first ever appearance. Those two are high on Tom’s list of casino
debuts which also include: Eddie Murphy, Beyonce, Taylor Swift, Bruno Mars, Robin Williams, Billy Crystal, Bruce Springsteen, Billy Joel, One Direction, Katy Perry, Jennifer Lopez, etc. The One Direction booking was the number one tweeted news maker providing the Mohegan Sun Casino brand as the most talked about brand on the worldwide web all over the world. Now that’s casino marketing. He got Jennifer Lopez to do her only live performance of the year in 2012 to celebrate Mohegan Sun’s 15th Anniversary. She was the most sought after female artist and was Women of the Year on every magazine cover, judge on the American Idol television series and hot seller on her merchandise line as well as a new hot video. When Cantone booked her, offers came in from all over the world thinking she was on tour. But she only did the Mohegan Sun Casino date which resulted in a record, worldwide media coverage of over 300 million Impressions. The gaming impact alone accounted for 25.4% of slot handle and 59.7% of table drop resulting in a 75.1% increase in table game drop and an 18.7% increase in slot handle that weekend vs a normal casino weekend. Tom credits it to the power of booking American Pop Culture at the right time. “Timing has always been my co-pilot and if you can program your marketing calendar accordingly, you win”. He also booked Prince for his only 3 shows on the East Coast and that alone generated substantial increases in incremental food and beverage revenues at the property. ” We actively work on 30-40 deals at any given time. There’s always something Big in play. Our entertainment programming is based on A List artists that can drive huge volumes of business which promotes our Brand to a national audience and drives our bottom line profits. It’s a Powerhouse Product differentiator “. Mohegan Sun Casino has a 10,000 seat, state of
the art arena designed for entertainment as well as flexibility. Tom Cantone is an artist and understands the dynamics of what should go where and when. Just having a great venue is not a means to an end. Casino entertainment is far more complicated. Not only does Tom have to worry about selling tickets he also needs to work closely with casino management to be able to help support them with custom tailored VIP functions as well as private meet and greets with celebrities in their dressing rooms backstage and convincing some very unique personalities to be nice to the VIP players and allow them to have their photos taken together. This sounds so simple but in reality it is extremely complicated. Again, Tom Cantone is the Master of Casino Entertainment. “In the business world, it’s common to do a SWOT Analysis (Strength, Weaknesses, Opportunities and Threats) of your product. The onslaught of non-stop major names all year long captured the attention of everyone at the casino. Tom feels that the key is to never surround your-self with yourself and bring in as much firepower as you can, especially in these difficult economic times. Cantone states “I’ve learned never ever take your foot off the accelerator.” The Mohegan Sun Arena now ranks among the top elite venues in the world and is often ranked number one or in the top five in the world for its size. It was voted the Arena of the Year at the G2E Gaming Conference in Las Vegas in 2013. Cantone states, “I always wanted the venue to be as popular as the artists who play it”. And, now it’s ranked in the same company as Madison Square Garden, Radio City, Staples Center and other major venues all because of the best running crew in the nation. They get full credit for making our venues a welcome mat for every tour that comes thru here”. Mohegan Sun is now the starting point for many national tours such as Bon Jovi, Keith Urban, New Kids/
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Backstreet Boys, One Direction to name a few. “Funny, in the old days, casinos used to be the last stop in an artist’s career, let alone now being the first stop in an artist’s touring career, as casinos today are the new distribution center for America’s talent. And, with our multiple properties we own and operate in Pa., Ct and NJ, we can effectively create our own routing and buying power for other non-touring acts”. Cantone was recently promoted to Senior Vice President of Entertainment for all MTGA casino properties including any new development properties that may come online in the future. Managing multiple properties is nothing new to Cantone who ran all the Trump Properties in Atlantic City as the head of Corporate Entertainment. Currently, Mohegan Sun is vying for the gaming license in Massachusetts which it found itself in the winner’s circle after referendum voters overwhelmingly backed its plan to build a $1.3 billion resort casino on land owned by Suffolk Downs racetrack in Revere near Boston. The project will have 4,000 slot machines, 100 tables, a 10,000 square foot Spa, a 950 seat ballroom and 38,000 feet of meeting space. This would create some 4,000 jobs. Other expansion plans include a Downtown District at the Mohegan Sun Casino in CT which will include a 14-plex premium cinema and large screen theater, bowling and dinning center, retail shops and a New England Gourmet Hall of food purveyors from throughout the six state region. Tom has a book coming out in June called “BookEm”, which profiles a behind the scenes look at how entertainment deals are really done and the business and profits they generate. I asked Tom if he could recommend only one thing to fellow casino executives, what would that be? Tom said, “Steve, I know you have a favorite expression that goes something like – The casino business today is not about making money, it is about
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creating value for our customers. Create the value first and making money will be easy”. My favorite expression is “The casino business today is not only about gambling, it is also about entertainment. Our job is to entertain our customers so that they will continue to visit our casinos to gamble”. Tom also explained that having a great venue makes it easier but that casino executives need to use whatever they have and work within whatever budgets that they have but to remember that their players want to be entertained. He strongly believes that entertainment will reshape the casino industry as we know it today. The Philadelphia Daily News called Tom Cantone “the most important booker of entertainment in the Western Hemisphere”. So he must understand the business. Tom said “Being part of a $24 billion live entertainment business in the United States on top of our own casino industry of some 900 casino properties that now represents 1% of the entire GDP, we are in the right place at the right time to make what we do count. Casino executives today need to have a sense of urgency too. Time is our most precious asset, how we use it defines who we are both personally and professionally. Too many opportunities are lost waiting for someone else to make a decision. Act like an owner, not a custodian. We are paid well to be leaders”. Steve Karoul is a well-known casino executive with over 36 years of casino marketing and senior executive level experience with some of the world’s top casino brands in both the United States and over 100 countries throughout the world. A respected author, lecturer and educator who provides valuable experience to Executive Boards, industry events and seminars, sharing his ideas and successful results. Telephone + (1-860) 536-1828 or skaroul@comcast. net or see www.euroasiacasino.com
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SLS’
BIG GAMBLE Rob Oseland and Sam Nazarian are betting that the North Strip isn’t dead. By David McKee
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ob Oseland is helping place a multi-million dollar bet on the north end of the Las Vegas Strip. He’s in a familiar role. The president and chief operating officer of SLS Las Vegas is opening his fourth Strip property as a leading executive. Oseland got into the casino industry the oldfashioned way, busting in as a dealer at downtown’s Golden Nugget. He subsequently moved on to The Mirage, as he ascended in the ranks within Mirage Resorts. When Steve Wynn opened Bellagio it was with Oseland as vice president of slot operations and marketing. During a brief period when Wynn was out of the casino industry, Oseland stayed busy as general manager Boulder Station. However, Wynn soon returned to the casino fold, buying the Desert Inn and shortly redeveloping it as Wynn Las Vegas. Oseland was its COO and later executive vice president of casino operations and marketing. When Wynn opened Encore, he tapped Oseland as COO again. SLS’ predominantly white palette could not be more dramatically different from Encore’s orgy of red decor and emerald sheath. By the same token, SLS bucks the prevalent trend in Las Vegas to obliterate what has gone before. It builds upon the skeleton of the old Sahara to present a 21st century megaresort experience at a 20th century price: $415 million. Owner
Sam Nazarian made his name as a nightclub operator in the Los Angeles market and has more recently begun spinning a Web of hotels bearing his brand. He’s opened an SLS hotel in Miami’s South Beach, in Los Angeles and has his sights set on New York City. Nazarian is able to take advantage of certain economies of scale, having only 1,600 hotel rooms to fill. As Dr. David G. Schwartz noted in Vegas Seven magazine, “the property is roughly half the size of the average Strip resort, and the renovated SLS will cost one-tenth the price of a brand-new Strip behemoth. Even if gaming and room revenues are lower than at other properties, that won’t matter: SLS will have considerably less debt load. It will be a nimble operation that isn’t handicapped by massive costs or an unwieldy corporate hierarchy.” Restaurants by Katsuya Uechi, Jose Andres and Philippe Starck will add to SLS’ cachet, as lounges like The Sayers Club, in a reinvention of its Los Angeles version. If the old Sahara’s clientele sometimes seemed as decrepit as the property itself, SLS is going for the youthful sophisticated and business-oriented crowd with a vengeance. It will have to cope with the logistical challenge of being at the far north end of the Las Vegas Strip, with the nearest casino a long ways away. We recently conversed with Oseland to get an idea of SLS’ strategies for what many still think of as “the Sahara.”
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What will be the signature attribute or attributes of SLS Las Vegas? One of the most unique aspects about SLS Las Vegas is that it is a collection of some of the best sbe [Sammy Boy Entertainment, Nazarian’s parent company] restaurant and nightlife brands all under one roof. All of the concepts will be operated by sbe, creating a great synergy among the brands for a dynamic guest experience. Will SBE be applying for a gaming license or does it plan to make its money back on rooms, retail,
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restaurants, etc.? We are applying for a gaming license. SLS Las Vegas will have a casino offering a wide variety of table games and slot machines, and we’re very excited and fortunate to have the opportunity to work with William Hill to introduce a sports lounge concept with a beer garden. How will you cope with being at the far north end of the Strip, isolated from foot traffic from other casinos? We’re very excited about our location on the corner
of Sahara and Las Vegas Boulevard, one of the busiest intersections in Nevada. We see ourselves as being positioned in the center of the Strip, connecting to downtown, the South Strip and local suburbs. We’re confident based on our experience in L.A. and Miami that our impressive selection of approachable restaurants and entertainment experiences will pique interests and draw locals and tourists to see what the buzz is about. SBE is also in business with MGM at Hyde nightclub and Double Barrel Roadhouse. Does this help cover your risk at SLS LV? We’ve had a great experience working with MGM Resorts through Hyde Bellagio and we’re excited to build on this relationship with Double Barrel. For us, it’s about executing what we do best to the fullest, and we look forward to building sbe’s presence in the community and offering original concepts to Vegas along with fun twists on established brands – across the Strip and especially at SLS Las Vegas. How do you position SLS to make its relative smallness an asset? SLS Las Vegas will offer true boutique experience on the Strip. The size is its asset! We have drifted back
in time to how casinos were once designed, tightly integrated, over programmed and filled with energy versus the expansive mega resorts that have been built over the past couple of decades. All of the venues within the property are easily accessible in an intimate space, allowing for added convenience for our guests. Describe the typical SLS customer. SLS Las Vegas will offer the same level of style and service that guests have come to expect from the brand in a new and approachable setting. From loose slots to delicious pizza at 800 Degrees to an incredible sushi experience at Katsuya, SLS will offer something for everyone. What kind of nightlife will you be offering? sbe is known for creating innovative, unmatched nightlife experiences, and the concepts at SLS will be a mix of brand new and existing concepts that will perfectly fit Las Vegas. One of the venues that we’re excited to bring to Las Vegas is the popular L.A. live music nightspot, The Sayers Club. The Sayers Club is known as a hotspot to check out emerging talent, along with performances by some of the biggest names in entertainment, and we think that the Las Vegas location will be just as popular as the original.
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The Global Cash Management Solution provider Crane Payment Innovations was formed in 2013 after Crane Co. completed its purchase of MEI. The company offers an extensive range of bill and coin acceptors, along with recyclers, hoppers, dispensers and software applications for the Financial Services, Gaming, Retail, Transport and Vending industries. Glyn Thomas caught up with a very busy James Boje, CPI vice president of Gaming, Retail and Financial Services EMEA , to get the latest on developments on CPI How was 2013 for the organisation and how is the year ahead shaping up? 2013 was largely business as usual for MEI and Crane Payment Solutions. It wasn’t until December that Crane Co. completed its purchase of MEI, consolidating the note and coin products provided by MEI and Conlux, as well as Crane Payment Solutions’ CashCode, Money Controls, NRI and Telequip brands. As a result, Crane Payment Innovations (CPI) offers the most comprehensive portfolio of cash management solutions in the Gaming industry. We are very excited for the future and what the rest of 2014 has to bring, but are steadfastly remaining focused on our customers. As we further integrate our core functions, our goal is to communicate regularly about the evolution of CPI and engage our customers in a way that invites feedback to the process. To date, the feedback we’ve received has been very positive. This is because the marriage of the Crane Payment Solutions and MEI brands into one large product portfolio translates directly into newfound convenience for operators
and OEMs. Now, they can find complete solutions from a single vendor. And, because our brands are complementary, there is very little overlap in our products, so our customers can be confident in our support of their current and future investments. There has also been much interest shown in the many new possibilities CPI will be able to offer in our progress as a single unified company. By pooling our strengths and resources, we know our capacity to serve the industry as a solutions partner will only grow. We aim set a new standard – driving transaction, asset and maintenance efficiencies into customers’ operations by exceeding both expressed and latent needs. In which markets and geographic regions are you seeing the most growth? In the Gaming industry, the majority of revenue is generated in three different ways: 1) replacement games, 2) retrofits and 3) openings. Because the US has the largest installed base of slot machines, there is a tremendous focus on the
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first two categories – replacement games and retrofits. New openings, however, are more of a focus globally. In fact, casino openings in Asia (between Manila and Macau) and VLT openings (including Greece) have offered some monumental opportunities to the industry. The MEI brand in particular has been very successful across the Canadian, Oregon and Illinois VLT markets, achieving nearly 50,000 CASHFLOW SC and SC Advance deployments over the past couple of years. The reliability of these note acceptors makes them ideal for distributed markets – and the capability of tracking slot performance from remote locations with EASITRAX Soft Count adds even more value where the installed base is spread across large geographic areas. How is the integration of MEI into CPI progressing since the official announcement in February? The consolidation of MEI and Crane Payment Solutions will take some time. We’re excited to get there, but it remains a journey. The intent is to temper our enthusiasm for what will become and, instead, focus on our commitment to meeting our high standards for customer service each and every day. Could you provide our readers details along with an overview of the extensive product range of CPI? The CPI portfolio offers everything from coin changers and hoppers to bill acceptors and cash recyclers. Among these products are two of the most comprehensive cash management solutions for the Gaming industry, one from each side of its robust portfolio of Crane Payment Solutions and MEI products. First is the combination of the CashCode one™ note acceptor and oneCheck® asset management system. CashCode one comes in a single universal design, regardless of country, currency or mounting protocol. Meanwhile, oneCheck delivers live connectivity between CashCode one note acceptors and existing TITO printers – without the need for physical hardware. Accessing and evaluating performance data has never been easier. The pairing of MEI’s SC Advance note acceptor and EASITRAX Soft Count system gives operators another choice when extending the security and acceptance of note acceptors into the soft count room. SC Advance belongs to the SC family of note acceptors that has achieved a field base of nearly one million units across the worldwide Gaming industry. Equally impressive, nearly 150,000 of those units are coupled with EASITRAX Soft Count, the integrated hardware/software system that drives operational efficiencies by streamlining the cash management process.
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Operators typically receive a return on investment within one year – or faster with the value-added EASITRAX Web feature that enables customized report creation and secure access to data from anywhere in the world. Also included in the CPI portfolio are products from the Money Controls and NRI brands, including a number of reliable coin hoppers and coin acceptors. A brief sampling includes the Money Controls Universal Hopper™ and NRI v2 eagle coin acceptor. The Money Controls Universal Hopper is CPI’s best-selling coin hopper, with millions installed worldwide. Among other attributes that make it so popular is its large capacity, superior resistance to fraud and exceptional jam prevention through its motor’s auto-reverse function. The Universal Hopper also yields a long lifecycle with minimal maintenance requirements, thus reducing the overall cost of ownership. The NRI v² eagle coin acceptor is setting standards within the payment systems industry. By using the unique MFT validation technology and additional sorting control sensors, outstanding coin security is guaranteed. The v² eagle features simultaneous evaluation of 24 measurement parameters for 32 coin channels, as well as an antijam sensor for fast coin insertion. The flexible approach of the eagle means it comes with top and front coin entry, along with a range of sorters. The v2 eagle is also available with a number of accessories including firmware update and configuration tools such as the HENRI+ and heartbeat PC application, and it is compatible with the system integration module PayLink. What payment solutions are providing the highest sales? The MEI SC Advance note acceptor is CPI’s leading product for Gaming. It follows in the footsteps of the winning CASHFLOW SC, redefining the role of note acceptors in the Gaming industry by improving upon the key performance features responsible for operator profitability and customer satisfaction – acceptance, jam rate, security and cost of operation. Another reason for its popularity is that the SC Advance is versatile – it can fit numerous applications. Moreover, the SC portfolio offers many modular expansions such as the BNF (Bunch Note Feeder), EASITRAX Soft Count and several different cashbox sizes. This makes it possible for us to cost-effectively serve an even wider range of markets and accompanying cash management needs with one product line. MEI had distribution contracts with distributors in several
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regions worldwide. How has the acquisition affected those relationships? The effect the acquisition has had on our relationships with our distributors is still evolving. We are currently assessing the capabilities of our distributors to build the strongest possible network for CPI. All the acquisitions in recent years have created a concentration of skilled personnel who have experience in technological development and design. Because of this, can we expect an even greater level of innovation and development throughout your entire products and services range? Absolutely. Innovation is part of the CPI name for good reason. We invest more than ten percent of annual revenue in research and development. And access to knowledge from the combined MEI and Crane Payment Solutions engineering resources gives our customers the power to turn the industry’s widest range of products into customized solutions. When will the convergence of MEI into CPI be seen on the exhibition floors at shows around the world from two separate exhibition booths into one under Crane Payment Innovations? Though the CPI logo had been introduced on the MEI and Crane Payment Solutions booths at previous trade shows, the 2014 FADJA show in Columbia was the first time products from both sides were exhibited on the same booth under the Crane Payment Innovations name. Moving forward, a Crane Payment Innovations booth is what visitors can expect at the trade shows we attend. What innovations and technical developments are you most impressed with from the 2014 range of payment solutions from CPI? The new MEI SCR banknote recycler will soon enter beta test in the German AWP market, with the goal that it will be available for sale during the second half of 2014. It is currently being integrated within Loewen machines. CPI eagerly looks forward to SCR earning the same reputation for superior performance and reliability as our other products. The SCR is a two-denomination note recycler built upon MEI’s proven technology and vast product experience to make AWP payment transactions faster, easier and more secure than ever before. It combines the performance and reliability of SC Advance technology with the benefits of note recycling as part of a total cash management solution. The result is a single closed-loop system that accepts, accounts for and stores cash from one player to give as change to the next. This eliminates hopper starvation in AWP applications and, as a result, machines can run for much longer periods of time without requiring maintenance. What makes the SCR unique amongst note recyclers
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are its security features, designed specifically to meet the challenging needs of the German AWP market. SCR offers exceptional fraud defense and internal security controls. Its architecture includes a removable antistringing mechanism, as well as a specialized inventory management system that accurately tracks the number of notes going into and out of the machine. It even provides complete note accountability when powered down. And access to system components, when needed for maintenance, can be done without providing access to secured notes. How was the ICE Totally Gaming show for you this year and the cake-cutting launch of CPI? ICE was a particularly exciting and successful show for MEI and Crane Payment Solutions, both of which exhibited on their own booths. It was there that we first displayed the CPI logo in front of a global audience, and we were proud that it received such positive attention from the attendees. We held a cake-cutting and champagne ceremony on both stands to celebrate with our customers and colleagues. It was very well-received. And finally can you provide readers the various regions contact details along with information on which exhibitions your booths can be found? The phone number for CPI’s corporate headquarters in Malvern, PA, USA is 1-800-345-8215. The number for our Reading, UK office is +44 (0) 118 938 1100, our Manchester office can be reached at +44 (0) 161 678 0111, and our office in Buxtehude, Germany can be reached at +49 (0) 4161 729 0. To contact any of our other global offices, please visit the “Contact Us” page at www.CranePI.com CPI will be exhibiting at the following upcoming trade shows: G2E Asia in Macau (Booth #849) Midwest Gaming Summit in Chicago, IL (Booth #111) Peru Gaming Show in Peru (Booth #17) Canadian Gaming Summit in Vancouver (Booth #319)
drAccounting • drTicketing • drCashless • drPlayer Tracking • drBonusing drJackpots • drScreen • drReports
DRGT Europe sales@drgt.net www.drgt.com
The State of Gaming in New Jersey More challenges ahead for New Jersey by Frank Catania
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t wasn’t too many years ago that Atlantic City had a monopoly on casino gaming in the eastern portion of the United States. Atlantic City Gaming revenues back then were larger than all the casinos on the Las Vegas strip. How things have changed in the last ten years. When Pennsylvania authorized slot machines in 2004 and casinos without table games opened in close proximity to various parts of New Jersey as well as the New York Metropolitan area the writing was on the wall that the Atlantic City casino monopoly was in trouble. Gaming revenues had grown steadily from the inception of casino gaming in New Jersey from 1978 to 2006 as had the gaming taxes received by the state. 2007 was the first year gaming revenues declined as a result of competition from casinos in surrounding states. The casinos in Pennsylvania and New York were more convenient than casinos in Atlantic City and the hundreds of busses that once traveled for North Jersey, New York and Pennsylvania were now headed elsewhere.
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The questions are now, can Atlantic City survive the competition that will be soon growing in New York State, will the marketing campaign “DO AC” have any effect on bringing gamblers back and will online gambling be successful enough to fill the void in lost revenues? The one project that could adversely affect AC more than any other is the resort casino proposal, Genting, the operator of Resort World Casino at Aqueduct Racetrack in Queens New York, has for Tuxedo, New York. The 238 acre site is located within an hour’s drive from New York City and Northern New Jersey. Genting’s proposal goes beyond just a casino and hotel. The project would include expanding the New York Renaissance Faire, adding festivals for the different seasons, expanding skiing and adding activities for all four seasons. How does the Atlantic City campaign “DO AC” combat a resort that provides various activities year round and not just casino games? Atlantic City is a great summer seashore resort
destination and needs to emphasize this is a place where you could bring the entire family to enjoy such great activities as, the Fire on the Water Festival, that includes Police versus Firemen boxing matches; the Atlantic City Triathlon; the AVP pro beach volleyball tour; the free on the beach Blake Shelton concert; the Atlantic City Air Show featuring the United States Air Force Thunderbirds; and the Miss America beauty pageant. However, the problem is Atlantic City is on the Jersey Shore and in late fall, winter and early spring the weather is not conducive to outdoor activities. There are no mountains on which to ski nor are there other sporting activities to attract tourists. So how is New Jersey going to recoup the loss of casino tax revenues that once were as much as $413 million dollars and are now less than half that, $213
million? Some think the reduction in the number of casinos might be an answer. Caesar’s Entertainment CEO, Gary Loveman, in a conference call recently said that closing some or all of its Atlantic City casinos was a possibility. Caesars has four casinos in Atlantic City and recently purchased the Atlantic Club Casino and closed it, selling all the gaming equipment located in that casino to the Tropicana Casino Hotel. If this were to happen it would be catastrophic to the South Jersey economy surrounding Atlantic City. Where would these thousands of employees find work? In my opinion this is not a feasible solution and the state and the unions that represent the employees that would lose their jobs should do all they can to prevent such an occurrence. It was thought that online gaming was a possible solution; however revenues are not as had been forecast. The federal government has been silent as to the legality of online gaming crossing state borders and international play, so maybe New Jersey should force the issue by allowing their casinos to take international play and not just from players located in New Jersey. What about casinos providing their online players with complimentary rooms and meals if they visit their casino? Use online gaming as a source for players in their land based casino. How about offering other rewards to the patron visiting the casino? Valley Forge casino in Pennsylvania recently began offering its patrons airline miles with US Airways. Since United Airlines has started service from Chicago and Atlanta to Atlantic City it might be an incentive to attract patrons from other parts of the country. Atlantic City existed before casino gaming arrived in 1978 and will continue to exist. It is the largest city in South Jersey and should look to attract other industries besides gaming. Technology is one such industry that might be fit for the city, in has the necessary infrastructure to support it. Whatever is in the future of Atlantic City maybe it should follow that old saying “Don’t put all your eggs in one basket.” Frank Catania Law Offices Catania & Ehrlich, P.C. Catania Gaming Consultants, New Jersey frank@cataniaconsulting.com
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Cuba Needs Casinos
F
by I. Nelson Rose
idel Castro is gone. He may not be dead. But on a recent trip to Cuba, I was told by both American and Cuban experts that he is beyond retired. His image may be everywhere, but he no longer has a living influence. Fidel has become to Cuba what Mao is to
China. His younger brother, Raul, is still alive, but is 83 years old. He has called for term limits, including his own. He will not run for reelection as President in 2018. Since taking over from Fidel in 2007, Raul started introducing reforms. He had to. Cuba is a country where nuclear physicists drive taxis, because they can make more than their $40 per month government salaries. Under Fidel, Cubans could not buy or sell cars or homes, so they arranged phony marriages. The property could then be transferred through a divorce. Still today, everyone owns their own apartments, but literally nobody owns the apartment buildings; so, there is no one to fix leaking roofs. Since there are no opportunities, young adults flee the country. Many are willing to risk their lives on Styrofoam rafts to try to get to America. Change is coming to Cuba. The big questions are whether it will be slow or fast, peaceful or violent. The old men who have led Cuba for the last 55 years – there have been 11 U.S. Presidents since Fidel took over – are survivors. They know how to hang on to power. If a charismatic leader arose who might one day challenge the Castro brothers, he was sent to work in the sugar fields. So, there is no caudillo (strong man) to lead a second revolution. But the old men also have to keep the disappointment and anger of the general population under control. They are understandably scared by what they saw happen to dictators during the “Arab Spring.” On January 14, 2013, the government began allowing most Cubans to leave the country, without having to get approval, pay $400 for a visa or forfeiting their right to return. This may turn out to be like the fall of the Berlin Wall. Average citizens visiting countries with more than four state-controlled television channels, let alone access to the Internet, will be more frustrated upon their return, with their lack of just about everything. The U.S. embargo, and the failures of communism, locked Cuba into 1959. Even the cars and buildings are the same. And this may provide the solution to Cuba’s problems. Classic 1950’s Fords and Chevys are everywhere. Imagine
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the reaction of a guy making $20 a month, after trade reopens with the U.S.: “I won’t give you more than $40,000 for your car.” Cuba’s 1950’s hotels are also still standing. More importantly, so are its casinos. Although now dark and empty, nothing else has changed; even the chandeliers are the same. You swear you hear the ghost whispering of longgone slot machines and crap tables, when you walk around the Riviera casino. Many of the bars and nightclubs are still open. The largest showroom of them all, the Tropicana with its multi-level, outdoor stage, sells out every night. The extravaganza features statuesque showgirls with feathered headdresses and sexy dancing, or at least what would have been considered sexy in 1959. Fidel, through his hand-picked provisional president, Manuel Urrutia, closed the casinos immediately after seizing power, just as he canceled the national lottery. But the thousands of Cubans thrown out of work took to the streets in protest. Castro’s own economic advisors told him that the country’s economy would collapse unless the casinos were reopened. They proved to be right, but too late. Castro relented, for a while. But tourists, especially Americans, stayed away in droves. The casinos were closed for good; and the economy did collapse. Communist nations are not averse to legal gambling. Casinos in particular have been seen as a way of extracting hard currency from tourists and from the underground economy. I played in a casino in Hungary before the fall of the Eastern Bloc, with all transactions in Deutsche Marks (this was before the euro). The Socialist Republic of Vietnam still has casinos. Surprisingly, so, too, does North Korea. And then, of course, there is Macau. The casinos there win more than all of the privately owned casinos in Nevada, New Jersey, Mississippi and the rest of the United States – combined. Macau, like Hong Kong, is a Special Administrative Region of the People’s Republic of China. The PRC is still technically a communist country, although it would be more accurate to describe it as Marxist: widespread free enterprise capitalism flourishing under a totalitarian, one party dictatorship. The bureaucrats who run Cuba can find a partial solution to the country’s present economic catastrophe and its pending political crisis by looking east – far east. Cuba needs to pull a Macau.
Resort casinos create jobs and bring in much needed revenue. They could ease Cuba’s transition out of the economic stagnation created by pure communism, as they did in China. Of course, Cuba does not have hundreds of millions of middle-class residents with few other legal outlets for gambling. In fact, the people are so poor that it is one of the few countries where it actually is to the advantage of casino operators that locals would not be allowed to enter. But, Cuba already attracts large numbers of tourists from Europe, Canada and Latin America; tourism is the nation’s leading industry. The spectacular success of Havana’s casinos in the 1950’s show what legal gaming could do, especially once Americans can visit without restrictions. The major problem is political. Havana’s casinos were symbols of the prior dictator, Fulgencio Batista’s, corrupt regime. When asked about the Americans who ran Cuba’s gambling, Fidel said, “We are not only disposed to deport the gangsters, but to shoot them.” In the early 1960s, children could get cartoon trading cards with purchases of Felices [Spanish for happy] Frutas’s canned fruit. They would glue them into their “Album de la Revolucion Cubana.” One shows an angry crowd storming the Deauville Casino, with this label: “El pueblo destroza algunos casinos y casas de juegos,” “The people destroy some casinos and gambling houses.” Still, this was half a century ago. Times change. Fifty years before Macau became the top casino market in the world, gambling in China was punishable by death. Cuba already has tourist zones, where locals are not allowed to enter, except for work. Canadian tourists already fly directly to resorts on the southern coast of Cuba, just to go to the beach. The natural spot for the first Cuban casino-resort is, ironically, the Bay of Pigs. The scene of the disastrous failed invasion of 1961 is now a thriving resort, especially for Europeans. But there is another spot, where a casino would be even more of a positive political statement by the Cuban government: Guantanamo Bay. It is isolated from the vast majority of the population; at more than 500 miles from Havana, it is actually closer to Miami. There are beaches and an airport and one of the largest sea ports in the world for cruise ships, if the U.S. will allow free passage. Cuba could set up another tourist zone, with legal gambling, on the Cuban side of Guantanamo Bay. Local residents would be barred. But visitors from every other country, including the United States, would be welcome. Americans can travel to Macau without even having to get a visa. Wouldn’t it be great if Guantanamo Bay became better known for its hotel-casino resorts than for its prison? © 2014, I. Nelson Rose. Prof. Rose is recognized as one of the world’s leading experts on gambling law, and is a consultant and expert witness for governments, industry and players. His latest books, INTERNET GAMING LAW (1st and 2nd editions), BLACKJACK AND THE LAW, GAMING LAW: CASES AND MATERIALS and GAMING LAW IN A NUTSHELL are available through his website, www. GAMBLINGANDTHELAW.com.
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Universal Appeal Glyn Thomas chatted to Dr Amable C. Aguiluz IX CEO Johnny Rockets Philippines
How was 2013 for the Johnny Rockets Franchise operations and how is the year ahead shaping up? Last year (2013) went really well for our Johnny Rockets operations. As with any business, challenges were present everywhere like the rise of competition in the food industry, price sensitivity related concerns of the consumers, increasing price of the raw materials, not enough excellent real estate for the brand to expand and domestic economic related matters. Even with so many challenges as mentioned above in the food industry, we view the future very positively and are still planning on expanding the brand in the Philippines.
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What age group would you say are you seeing most growth in patrons to your Johnny Rockets Franchises? The most growth we are seeing currently is 16 to 21 year olds, as well as 50 years old and above. Is the Johnny Rockets franchise popular with families? Johnny Rockets is extremely popular for families, particularly on the weekends when they are looking for a fun, entertaining place to enjoy a meal. Was the franchises an overnight success or did
you have to market them allot to gain the initial interest? Effective marketing played a vital role in creating interest and awareness for the Johnny Rockets brand. We believe ongoing marketing will be instrumental in bringing new customers through our doors on an ongoing basis. Is the menu the same as in the US or has it been modified? Our basic menu is the same as the US menu, particularly the all-American favorites like the hamburger, American fries and hand-spun shakes.
We did introduce other products that suits the local market as well. What would you say have been the key aspects of the Johnny Rockets brand that have been so appealing for your customers? The key aspects of the Johnny Rockets brand are its food quality, the ambiance, the thematic atmosphere, entertainment (dancing and singing) or having fun while eating at any of our restaurants. Our clients also love that Johnny Rockets is a US brand and provides excellence service.
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Would you say the Appetite & Appeal for the Johnny Rockets style of food & brand is Global? Burgers have an international appeal, so yes, the Johnny Rockets food and brand has a global appeal. Why did you choose the Johnny Rockets franchise, what where the determining factors in your decision to go with a franchise with this organisation? Johnny Rockets has a distinct and unique way of presenting the restaurant main focal points as compared to other restaurants. The overall fun atmosphere and dancing that our guests experience and its global appeal were also determining factors. What is your organisations approach to when promoting your restaurants do you involve advertisements on Television or Radio and local and international newspapers? We are open to all media types and are currently executing multiple campaigns across various mediums. Currently, we only do local newspaper advertisements as it reaches our local customer base. Do you do special discounted promotions? Our Johnny Rockets locations do provide special
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discounted promotions, but only for special occasions or events. Do staff at the Franchises join in with dinners in celebrating birthdays anniversary’s by singing for example happy birthday? In the Philippines, celebrations are a way of life, so we absolutely join our customers in celebrating their special occasion. We have been singing Happy Birthday since we opened Johnny Rockets almost five years ago and have even hired professional composers to help create a special Johnny Rockets song. What percentage of ingredients of the various dishes and choices from the menu at your restaurants is local produce? Almost 99% of our menu utilizes local produce. The only item that is imported from the US is the secret seasoning for the burgers. What would you say to those Resort Casino operators whom are reading this interview about why you think this franchise is a must have for their Resorts? Johnny Rockets has a great market appeal. It matches or compliments the ambiance of any resort or casino and the food being offered has a universal appeal, perfect for any resort casino operator.
The iGaming domino effect
strategies: tactics: timing
San Francisco | Hyatt Regency | July 14 - 16, 2014
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