Casino Life November 2014

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November 2014

Panaviera Panorama


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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

Editor’s page Welcome to Casino Life.

Maybe it was just me – but did we all see happy faces in Las Vegas for G2e? Ok, Some staff on some stands were thinking hard about their future as more slot companies merge but generally I haven’t seen a more optimistic show for a number of years. Talking to manufacturers they were all taken aback by the fact that casino groups were not sending over the usual complement of one or two staff but generally complete teams – and more Europeans were there – whereas in the past the surge had been from Latin America. Some casino groups had not been seen for a number of years. What does this mean? Well it could be that we are at a convenient cycle of equipment replacement or it more likely points to the market becoming more confident. Let’s hope it’s the latter. Flip through this issue and smiles are also the common link – whether its Robert Brassai fresh from the opening of Ocean Sun Casino in Panama, Dick Haddrill at Bally Technologies or Roy Ramm at Caesars Entertainment. This, after all, is a peoples industry – and we’re pleased to have so many diverse contributions from around the world. Bill Healey reports on one of South East Asia’s most impressive Resort Casinos - the Grand Ho Tram Strip in Vietnam; Harald Wagemaker Executive VP Gaming EMEA at Suzo Happ talks about the phenomenal growth of the company and how diverse it has become. Meanwhile on the regulatory side, the importance of Gaming Licensing Investigation is covered by John Flynn - a 28-year veteran of the Nevada Gaming Control Board. Having supported the Slot Summit for a number of years it was great to see it becoming a landmark gaming event through Clarions acquisition and I thought our involvement would cease. I’m therefore very pleased to have been invited back to the event later this month in Lille as a speaker, talking to French Operators about Bingo - a subject close to our heart at our sister publication Bingo Life. It all begs the question: Are the French ready for a full on Bingo Night with dayglo dobbers and UV bikini clad go-go callers? I am.

Journal Manager: Chris Sanson csanson@ace123.com Publisher: Peter White Tel: +44 (0) 1892 740869 Mob: +44 (0) 7973 273714 pwhite@ace123.com

Glyn Thomas Editor in Chief

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Contents 4 Panaviera Panorama Glyn Thomas Editor in Chief Casino Life talks to Robert Brassai, General Manager, Ocean Sun Casino about his love affair with Panama 10 The Grand Ho Tram Strip Vietnam Bill Healey reports on one of South East Asia’s most impressive Resort Casinos 16 The New Bally Technologies: Progressive Entertainment Richard Haddrill had a busy 2014 and it’s going to be even busier in 2015. 20 ‘Innovate, don’t Imitate’. Chris Sanson spoke to Dieter Dallmeier founder of one of the World’s Leading network-based video security technology providers. 25 Fine Tuned Gaming Glyn Thomas spoke to Paul Sculpher & Steve Jackson at the launch of their Recruitment company 29 Responsible Gambling Peter White interviews Roy Ramm Chairman Playing Safe & Governance and Public Affairs Director Caesars Entertainment UK 31 The Real Cost of Non-Gaming Attractions By Victor H Royer President of Gaming Services & Research 35 Growth through diversification Chris Sanson interviews SUZO Happ, Executive VP Gaming EMEA Harald Wagemaker 38 The importance of Gaming Licensing Investigation By John Flynn a 28-year veteran of the Nevada Gaming Control Board 44 Appointments James Boje new head of Aristocrat EMEA 46 Spotlight Alfastreet Celebrates its 20th anniversary in style during G2E Las Vegas

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.


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PANAVIERA PANORAMA

Glyn Thomas Editor in Chief Casino Life talks to Robert Brassai, General Manager, Ocean Sun Casino about his love affair with Panama

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How was the opening night? We had our soft opening on the 12th September, a very tight deadline given the complexity of the project. Our official inauguration we separated into two events, one for local and international dignitaries and our partners on the 24th October and another one on the 25th for our customers. Both events went down extremely well, included cocktails, a sea food extravaganza, celebrities and the most amazing firework shows. It must be a very satisfying feeling for you and your colleagues the following day of the official opening? A lot of work went into building this casino, putting the team together and organizing the day to day life of this one of a kind place. With the opening behind us now, there were quite a few sighs of relief from my colleagues, only to realise a few days later, how much more work lies ahead of us. I would like to thank all involved in creating Ocean Sun Casino for their long hours at work, professionalism, and dedication at creating an extraordinary team. Can you provide an insight into the facilities provided for VIP Guests? To start with our crown jewel, we offer the highest gaming area in the world, in the form of our VIP room the Panaviera, situated on the 66th floor of the Trump Ocean Club. Panaviera comes complete with tables and slots area, 3 private gaming rooms, a lounge, a restaurant, a swimming pool and its adjacent bar. One floor below we own 6 luxury suites offering direct access to all our gaming facilities, 24 hour butler service and the most personalised service this part of the world. Apart from this, the Trump Ocean Club Hotel comes complete with 369 contemporary rooms and suits, several swimming pools and restaurants. Our service staff can organize every imaginable activity for our guests; shopping, golf, sports fishing, excursions, island escapes, to name just a few. How early in the process are you involved once the building has been completed with the new Casino and what where amongst your first tasks? The construction work started in late November last year, while I arrived on site in January, so I had to be involved in more or less everything. Our development team carried out the fitting out of the casino spaces and needed very little input from

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me or the operations team. My main focus was on organisational matters, such as staffing, equipment, setup of our player development programme, marketing effort, etc. What has been the planning behind the choice of games and suppliers? Choice of slot suppliers was mainly based on local market trends and tastes, spiced up with some of their newest product to give Ocean Sun Casino the most up to date slot park in the whole region. Other suppliers, like surveillance, CMS, IT, table games, etc. were chosen for their expertise in their respective field and technological avant-garde.


How are trends influencing the design and layout of the gaming areas? There hasn’t been much invented on this subject in the past few years. Local preferences were taken into account when designing our floor to a certain extent, but mostly it was based on internationally accepted design principles. The light level of the ambient lighting must have presented some challenges given the amount of glass that provides for the exceptional panoramic views provided by the Panaviera that is situated on the 66th floor of Trump Tower? We installed a high tech remote controlled and

programmable blinds system which can gives us the best of two worlds. During the day the blinds are down and are semi-transparent blocking out most of the natural light, while after sunset they are up so that our guests can benefit from the magnificent view while playing, dining or having a cocktail. The bar at the Panaviera has to be one of the most impressive bar areas of any in the World wouldn’t you agree? It certainly is. Photos taken at the pool bar figure on the Facebook, Whatsapp, Twitter, Instagram profiles of most people who had the chance to get up there.

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What elements on the gaming floor in your opinion present the biggest challenges & opportunities? The main gaming floor is situated on the second level of this very tall building, thus one of our main challenges were the number and size of the columns that dissect the floor. The designers have done a very good job in using these for our advantage and creating a dynamic floor layout where gaming and F&B elements create a harmony and a friendly gaming environment for all tastes. The size of the floor and the outside terraces presented an opportunity for including three different kinds of F&B outlets. We have a gourmet restaurant called Macondo, a sports bar, Invictus where sports betting will be available shortly and Candela, our entertainment lounge, where concerts, raffles and other similar programmes are held. Over recent years Sun International has invested in new Casinos that have brought much needed jobs along with training and development of local work force, how have you found the quality of the staff at the Ocean Sun? Panama is blessed with a very dynamic economy, thus unemployment is very low. This is good news

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for most, but has its drawbacks in the fields of staff retention and service levels. The country is struggling to provide international quality service to its foreign visitors. One of the trademarks of Sun International is outstanding service, so in line with that philosophy we have spent heaps of money and effort on training our employees and creating an environment where service comes naturally to our staff for the benefit of all. I am proud of what we have achieved in this regard, and can confidently say that we have by far the best service in the whole region in the industry. Our international high rollers’ testimony to the levels of care that we provide is exactly the feedback that justifies all the dollars and hours invented in customer service. What would you say are some of the additional unique aspects about Ocean Sun Casino? Our location certainly figures high on the list. Panama literally is the hub of the Americas. One can get to us from any main population centre of the continent by direct flights, which as we know is a main consideration for VIP players when choosing their next destination. The country has more to


Left to right: Andres Patino – Marketing Manager OSC, Anthony Leeming – CFO Sun International, Robert Brassai – GM OSC and Graeme Stephens – CEO Sun International

offer than one could imagine. We are the biggest and most luxurious casino in the region, we have the highest limits south of Las Vegas and the list could go on. Can we expect to see major Poker tournaments in the near future at Ocean? Our main focus right now is on our VIP strategy and driving high roller traffic onto the property. Part of this effort will be major poker tournaments in the near future. We are in talks with several industry leaders in the world of poker for future events. Will cashless gaming option be an option on all gaming devices? Sun International offers cashless gaming on most of our properties. Due to the preferences of the local market, with this project we decided to go with TITO, however all our hardware if capable to handle smart cards if we decide to change to that solution in the future. Environmental concerns are always an important factor in present day what personal and business life how has Sun International contributed to lowering its carbon foot print at the Ocean View?

Environmental responsibility is high on Sun International’s agenda and this holds especiually true here in Panama. We have applied all the latest technologies to cut our impact to a minimum. All lighting is LED based, all our windows have a special coating to reduce heat exchange, we train all our staff on proper energy usage both at work and at home. How is life in Panama and what has is the rest of 2014 shaping up for you? Panama is a love affair, and that was obvious to me a few months into my new life here. The country has so much to offer. A vibrant, cosmopolitan city, from which in half an hour you can be in the middle of the rain forest. One hour and you find yourself on a tropical island either in the Pacific or in the Caribbean. People are extremely friendly and relaxed, in the best Caribbean fashion. There is not much left of this year, but the next few months will keep me busy with fine-tuning this casino and selling it on the international high roller market, while also setting up a new project in Cartagena, Colombia which should open around April next year. I will not be bored for sure.


The Grand Ho Tram Strip Vietnam Bill Healey reports on one of South East Asia’s most impressive Resort Casinos

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D

esigned to draw domestic and international tourists to the pristine, sundrenched beaches of southern Vietnam, the Ho Tram Strip is quickly becoming one of Asia’s top leisure getaways. With a focus on providing a personalized blend of excitement and relaxation, the Ho Tram Strip features something for everyone -- whether it be one of the region’s top golf courses, Vietnam’s first international standard casino, lavishly appointed accomodation, incredible entertainment options to premium dining shopping or exceptional recreational facilities. “We are set on more than 400 acres of land along a 2.2 kilometer beach and surrounded by protected forest, and conveniently located just two hours away from Vietnam’s largest metropolis, Ho Chi Minh City,”

said Stephen Shoemaker, Chief Executive Officer of Asian Coast Development (Canada) Ltd, the developer of the Ho Tram Strip. The first phase of the Ho Tram Strip - The Grand Ho Tram Strip - opened its doors in July 2013, and includes 541 five star rooms, gaming, meeting and convention space, nine bars and restaurants, a spa, teen’s and children’s areas, three swimming pools and gift shops. The second phase will include a mixture of vacation homes comprised of condominiums and residential villa developments. Ultimately the Ho Tram Strip will one more integrated resort with world class amenities and three additional five-star resorts. The Grand was the first truly integrated resort to open in Vietnam. Its current gaming facilities offer

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585 slot machines, 90 table games and multiple VIP table rooms for the finest in full-service gambling. Open 24 hours a day, seven days a week, the gaming features include: • Table games: 90 table games including VIP Baccarat, Baccarat, VIP Roulette, Roulette, Sic Bo, Blackjack, Ho Tram Stud Poker Progressive, Ho Tram Hold’em Poker, Progressive and VIP Texas Hold’em. Baccarat is the casino’s top table game. • Slots: 585 slot machine (including 118 electronic table games which consists of Roulette, Baccarat, Sic Bo and Craps; 32 machines in VIP-high limit area, 8 machines in private gaming rooms) Lucky Big Wheel - Aruze..........................................15 Lucky Sic Bo - Aruze...................................................8 Craps - Aruze.............................................................8 Interblock G3 Roulette............................................64 Interblock G4 Roulette & Baccarat..........................38 The slots that are doing the best at the casino:

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• Slots is Aristocrat • ETG is Interblock Roulette machines. Best performing electronic gaming machines include Aristocrat and Shuffle Master. The resort also provides both Poker and Slot Tournaments. For slot tournaments, there is a buy-in and a time-limit. When the time limit expires, players have a final spin, starting with the player with the lowest credit. If they win here, they can continue to play up to five more times, with the winner being the player with the highest credit at the end of the session. The Grand has been playing this in heats, with a final round playoff to determine a winner. “Our casino offering is targeting tourists from around Asia, with an emphasis on mainland China, Thailand, Singapore, Malaysia, Japan and Korea,” said The Grand’s recently appointed President, Shaun McCamley. “So far, tourists from the PRC have made up the largest group of inbound visitors to the property. We also market to Viet Kieu (foreigners of Vietnamese origin) from all over the world, as


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well as the local resident expatriate community. The Grand’s non-gaming targets includes local Vietnamese, typically seeking a truly unique F&B, leisure and golf experience.” Along with casino gaming, the resort offers an array of world-class leisure activities. In recent weeks (October 2014), the Ho Tram Strip delivered further on its vision to develop a truly unique destination resort in Asia with the opening of The Bluffs – a championship golf course designed by golfing icon Greg Norman. With Norman himself on hand to cut the ribbon on a course he has called one of the two most beautiful that he has ever been involved in, the course has been open for preview play since early in 2014, The Bluffs has already been nominated for three Asia Pacific Golf Awards, including Best New Golf Course in Asia Pacific, Best Golf Course in Vietnam and Best Golf Course Superintendent (Ali Macfadyen). In so doing, it became the first course to ever be nominated in three categories at the prestigious

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awards. “To be recognized in such fashion without even being officially open speaks volumes to this course and the job everyone here has done,” said Ben Styles, General Manager of The Bluffs Ho Tram Strip. “We can’t wait for the world to come and enjoy what I firmly believe is as good as any golf experience that exists.” Speaking from The Bluffs launch, Harbinger Capital Principal and Ho Tram Strip investor Philip Falcone took the opportunity to announce that the Ho Tram Project Company would be developing both condominiums and villas which would be available to both international and domestic investors. Adding to The Grand’s allure is the opportunity to escape into the resort’s signature spa. This beautifully designed sanctuary provides a constant cycle of anticipation while unveiling surprise and delight. Ancient healing traditions of the world’s richest cultures combine with modern sensory immersion technology to help restore balance and inspire a sense of rejuvenation, connection, and well being.


For a bold new evolutionary nightlife experience, Club 9 offers an unforgettable place to party. Embodying the mysticism, power and seduction of the dragon; the fashionable nightclub allows guests to indulge in their specialty cocktails as well as a unique bottle service presented by their gorgeous team of Natural 9’s. In recent months, Asian Coast Development (Canada) Ltd., the owner of The Grand Ho Tram Strip, announced two new investments in the property in 2014. The first in July, was an investment of US$20 million by NewCity Capital, an entity established by American investor Mr. Chien Lee. In September, Asian Coast Development announced a US$50 million funding commitment from its majority shareholder, Harbinger Capital. Harbinger is the majority owner of Asian Coast Development Ltd along with minority owners Pinnacle Entertainment and NewCity Capital. Asian Coast Development Ltd.’s Board of Directors recently announced the appointment of Mr.

Stephen Shoemaker as Chairman of the company’s Board of Directors as well as its President and Chief Executive Officer. Mr. Shoemaker had previously served as ACDL’s President and Chief Financial Officer since 2008. With over 30 years of financial and operating experience in the hospitality and telecommunications industry, Shoemaker’s extensive background will be used in developing strategy, overseeing financial operations and fund raising activities. Vietnam’s gaming scene is one to monitor closely, as the government prepares for a decree that could give the local Vietnamese an opportunity to enter the gaming floor. The Grand Ho Tram Strip is ideally positioned to welcome this traffic. Bill has been working in the global leisure and gaming technology industry for more than thirty years. Based in Bali for the past ten years, he frequently writes and consults on gaming, golf, club and spa management.

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The New Bally Technologies: Progressive Entertainment Richard Haddrill had a busy 2014 and it’s going to be even busier in 2015. During G2E Las Vegas last month, he stepped away from his hectic schedule to visit with Jack Bulavsky, Casino Life special assignment correspondent 17


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ichard (Dick) Haddrill is Chief Executive Officer of Bally Technologies. Prior to coming to Bally Technologies in October 2004, Haddrill, who has served on its Board of Directors since April 2003, was CEO for five years at Manhattan Associates, Inc., a leader in software solutions to the supply chain industry throughout the world. During his tenure there, the company expanded its product offerings and market share, more than tripled revenues, and increased its share price more than eight fold. Haddrill previously served as President and Chief Executive Officer for Powerhouse Technologies, Inc., a technology and gaming company. Powerhouse was acquired by Anchor Gaming, a publicly traded gaming company that was acquired by International Game Technology (IGT) in 2001. Among his many other responsibilities, Haddrill sits on the board of the American Gaming Association (AGA) after serving as its Chairman for two years. So tell me about 2014. It’s been pretty crazy. First, we’re real happy with the SHFL acquisition as it gave us the broadest product

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line in the industry and the opportunity to be a real strategic partner with our customers. The acquisition was completed last November and we finished all integration in June. That enabled us to become the leader in tables; we were already the leader in systems, and we recently became the leader in slots within the industry. By that I mean we shipped more slot machines last quarter than anyone else for the first time in over 25 years. And we hope to stay there. At the same time, we are making good progress in the interactive world. So yes, it’s been pretty crazy. We’re happy with SHFL, which also gave us greater geographic diversity and good recurring revenue. Now, with the announcement on August 1 that we’re merging with Scientific Games, this new combination of companies has even deeper content and greater customer diversity. It’s going to become a real technological powerhouse of a company to lead the industry. Powerhouse of a company. That seems to be bit of an understatement. It’s amazing isn’t it? Bally started 83 years ago in Chicago with pinball machines and we were the first company to do electro-mechanical slots and the first


gaming company to be listed on the New York Stock Exchange. And now, as we become a true leader in the industry, we look to compete with other forms of entertainment that are even more fun and more driven by technology. One of the great benefits of this merger is that we now have the technological ability to develop content one time and deploy it across multiple media as well as multiple jurisdictions in multiple languages. So the technology is getting better to leverage our content more broadly. Bally Technologies is a business that is global in many arenas including lotteries, internet, and mobile gaming. You say the technology is getting better. Can you give me an example? The biggest technological trend is the interaction of slots, tables, mobile and tablets. It’s coming together so casinos can take advantage of it through systems and mobile technology. A little dabbling with 3D and skill-based games is also out there, but those are more niche trends. Technology drives our products constantly. At the CES [Consumer Electronics Show] earlier this year, the big attraction was curved televisions. Last year we showed curved slot machines, which are easier on the eyes and offer greater immersion into the game. Add a good seat with great speakers and the player now has a really immersive entertainment experience. However, players always want more and now they want more from technology. We introduced Take ‘n Play at G2E. With this groundbreaking product, you can go to your favorite machine and swipe the game onto your tablet and then leave the casino floor to move to your hotel room, the pool, or a restaurant and continue to play the game. You can then return at a later time to the original slot and swipe it off your tablet and back onto the machine and continue playing. I like to think that Bally Technologies is the clear leader in table technology. We’re the leader in systems, so we collaborate closely with our customers to help shape their business roadmap. Research and development cycles are different, too. It can take well over a year to develop a new shuffler and the same amount of time in developing a new system. It takes half that time to create a new game. And it costs less.

What’s happening with all the consolidation within the gaming equipment industry? For years, companies in general, especially in the area of technology, wanted fewer suppliers. What they wanted were more strategic suppliers because of the complexity of technology. It took longer for this to happen in gaming for a number of reasons including such factors as market space, personalities, interest rates, and trajectory of the stock prices. Now, because of the consolidation, Bally Technologies can be a true strategic partner to our customers. One of the things we have done is assure customers that all brands will remain in order to develop cost synergy to benefit our customers. However, this will not take away the options for the many good products now available. Much of this will be on display at G2E next year when there will be one booth with the different brands under the Scientific Games umbrella. What do you glean from all the information you have about your global customer? The core casino customer comes for both the gaming and social experience. They really want to be around other people and be in an exciting and energizing environment. More games are social in nature such as our new Pro Wave 360°, which won Best Slot Product in the Gaming & Technology Awards during G2E this year. It’s five gaming machines with a common set of curved screens across the top. In Dragon Spin, the first game on the 360°, a dragon goes across the five screens of the five players. Each player wants the dragon to stop on his or her machine and they want to know where the dragon is; there is a community feel to this game. There is a global acceptance of gaming as a form of entertainment. We see many Asian- themed games being successful no matter where the games are placed. We also found that a game developed in Australia for Australians can spread to another market and then become successful across the globe. But for all our successes, not everything sticks. In the game- development arena, there are a lot of strikeouts. It’s an Ouija board. However, when you find a theme that works or a math model that works, you keep leveraging it.

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‘Innovate, don’t Imitate’ 30 years of Dallmeier: From its origins as a two-person business, the Regensburg-based company has evolved into a successful global player with more than 250 employees. Today, Dallmeier ranks among the leading providers of network-based video security technology in the world, and a regular stream of ideas emerges from its vigorous research and rethinking programme. Chris Sanson spoke to company founder Dieter Dallmeier and took stock of the last 30 years 20



Mr Dallmeier, how exactly did it all start, 30 years ago? In 1984, I was a master television engineer, and after discussing the step with my wife Christina I decided to begin working for myself. Of course, it was not easy to begin with, and we constantly had to survive periods of belt tightening and we never knew how long they would last. But we were stubborn, and through the early years we never stopped believing in our vision and ideas. Finally, in 1992 we made a truly indelible mark on the video security technology market: At a time when analogue VHS cassettes were being used widely in the industry, we unveiled the world’s first video sensor with digital image memory – and that was the start of DVRs! At first, many people ridiculed the idea, but this development turned out to be a milestone for the industry and heralded the beginning of the digital recording age for all video security technology. Then, major breakthrough came in 1997. This was when we developed the first digital gambling table solution for the Crown Casino in Australia. Since then, demand for Dallmeier products has increased constantly.

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Nowadays, our products and system solutions are sold in more than 60 countries worldwide through our distribution partners. We have also developed an international network of many agencies in countries such as Great Britain, Spain, Italy, Russia, Macao, Switzerland and the US, through which our partners and end customers can receive personal assistance and professional service on site. So having started as a two-person company, in 30 years we have grown into a successful company with global presence. That’s a really long way! Dallmeier has a reputation in the industry for constantly looking for new avenues… Our motto is “innovate, don’t imitate”. So we have never been a company that blindly follows trends. Instead, we are always searching for the best solution. This also means that our research often takes us in unconventional directions, or sometimes that we are in direct opposition to the general tide of thought. For example, a few years ago, when more and more companies were relocating their production operations


function reliably and offer the user real benefits. In order to align our research work as efficiently and as closely as possible to real-life conditions, we cooperate very closely not only with universities and other institutions of higher education but also with research organisations such as the Fraunhofer Institut. We are also active participants in various clusters and networks, such as the IT Security Cluster, the Sensor Technology Cluster and the Network for Innovative Logistics. Dallmeier is also a member of a large number of international cooperations, such as the ESSMA (European Stadium and Safety Management Association).

to Asia, we remained committed to our site in Germany – in fact we expanded our manufacturing facilities here. Of course we don’t make decisions like this just on the basis of gut instinct. We place our trust in long-term planning and an uncompromising pursuit of quality. We take a keen interest in the current market and new developments, so that we can detect technology shifts early, for example, and incorporate them in our own development plans. But we don’t follow trends for the sake of following them. We always ask ourselves what advantages a new technology really offers – then we plan our approach accordingly. This enthusiasm and passion for developing and driving groundbreaking new technologies has also been my motivation all these years. I still find it immensely exciting to see what the effects will be for our entire industry. So what form does Development take at Dallmeier? We are very interested in developing innovations that will define the nature of the industry in future, that

Dallmeier has been causing a sensation for some time with its groundbreaking new multifocal sensor technology. What is so special about this? For the last few years, camera manufacturers having been involved in a bitter struggle to offer the highest megapixel values. Rather than get involved in this unwinnable contest, we tried to approach the problem from the customer’s perspective. After all, the actual number of pixels is a matter of sublime indifference to the customer. He simply wants to know that his video system will help him to recognise and identify an individual of interest. And this question is not answered with resolution alone, especially when it is merely expressed as “5 megapixels” or something like that. In order to provide planning reliability, we define resolution in terms of pixels per metre (pix/m). According to this measure, for example, you need 250 pixels/m to identify an unknown person, regardless of how far the person is from the camera. In practice, many other factors also influence the actual usefulness of the video material, such as photosensitivity, dynamic response, image rate or bandwidth – and of course the infrastructure needed. We thought long and hard about how to solve this problem, and finally we developed a completely different kind of camera technology, which has in fact been patented: the Panomera® multifocal sensor technology. Unlike conventional, single sensor cameras, multifocal sensor technology makes use of multiple sensors, each of which has a different focal distance. In this way, large expanses and distances can be covered and monitored from a single installation location – in real time and with constant picture resolution, good dynamic response, and unvarying depth of field.

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Panomera also records the overall picture without interruption, so the operator does not have to worry that he will zoom to the wrong area just at the decisive moment, as is the case with PTZ cameras. He can carry out his tasks without stress, secure in the knowledge that the full range of zoom or analysis functions will also be available in the recordings subsequently. Have you concentrated your interest on certain industries or projects over the years? Our product portfolio has grown steadily over the last 30 years. These days, we offer total solutions from a single supplier, from image capture through recording to video management and intelligent video analysis. All of our products can be used both for relatively small projects and for large installations in which several thousand cameras have to be connected to each other. Of course, the press reports more frequently on the large projects, they are just more spectacular and more interesting for the reader. But we also equip a very large number of smaller projects. Consequently, the markets we are active in are exceedingly diverse. They range from private residences or petrol stations to commercial and industrial premises, and on up to stadiums, seaports, airports, casinos and city surveillance to name just a few examples.

Complete solutions from a single supplier – this must make interfaces and integration quite complex? Our video management solutions are platformindependent. With open interfaces, we give our customers the freedom to choose between “complete solutions from a single source” and “best of breed”, so they can create the optimum solution for any purpose. Both buying strategies also enable additional freedom to choose among hardware, software or virtualised solutions with the best possible option for integrating 3rd party systems. In principle, each CCTV/IP solution from Dallmeier is designed such that it is able to function as an open platform for integrating third party systems. This way, the security systems by Dallmeier will also remain adaptable and upgradable for the long term, which consequently represents long-term investment security. What will the future look like for Dallmeier? Of course, I can’t predict the future. But I am looking forward to continue developing many new ideas, realising many new visions together with my wife Christina, my son Thomas and our employees, and creating cost-effective, practical solutions for video security technology.

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Fine Tuned Gaming Recruitment Glyn Thomas spoke to Paul Sculpher & Steve Jackson at the launch of their Recruitment company

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here’s a new option for employers in the gaming industry looking to secure the best talent for their business, as industry veterans Steven Jackson and Paul Sculpher have joined forces to launch Gaming Recruitment

Solutions. Steven is a veteran of gaming recruitment over the last decade, and told us about launching the new firm (website at grs-recruit.com). “I’ve spent over a decade helping employers solve their recruitment needs, and always thought about working for myself instead of another company. There are a lot of challenges in starting

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up independently, but already we’ve re-established numerous relationships, and the level of goodwill and positive reaction from people I’ve helped before has been wonderful”. The target market is the international integrated gaming industry, whether offline or online at a mid to senior level (CXO) Steven told us that the work comes from all directions. “Over the last decade I have developed and nurtured connections all across the industry – so whether it’s offline operational roles such as casino management, or head office functions like Marketing, Finance or technical roles - or even product,


business development and the like for suppliers to the industry or anything in between, generally I’ve recruited them before and have a strong understanding of the roles but of course each assignment’s needs are different and unique. Steven’s business partner, Paul Sculpher, is also a veteran of the gaming industry in the last 20 years, although not in the recruitment field up until now. He spoke of the difference in approach in terms of recruitment. “It’s a totally different sector for me, although having plenty of the connections already in place has been useful. The biggest shock is the amount of work involved – I had in the back of my mind that it would be a fairly simple case of connecting elements of my existing network to fill vacancies, but there’s a huge amount of research to be done”. There’s definitely a challenge in being able to adapt to so many different elements of the gaming spectrum, but most of the recruiter’s skills can be deployed regardless of the individual job under discussion. A good recruitment consultant will place maximum emphasis on understanding the exact needs of the client – rather than assuming that they already know – and will listen carefully to the brief issued at the start of the process. Jackson summed it up by saying, “most employers have a very clear idea of the type of person that they want, and do a good job of expressing that to us so we can find a perfect fit for them. Some, however, are less sure of their requirements and that’s where our experience can help. A good sit down with clients right at the start of the process helps everyone to make sure they’re on the same page and makes sure everyone’s objectives are aligned”. The recruiter can be a pretty maligned role – some people have something of an aversion to agents due to the presence in the market of some pretty fly-by-night

operators – but ten years in the business speaks for itself, and Jackson’s reputation precedes him. Sculpher said “I have worked with Steven in the past, recruiting through him for three companies and I was even on his books as a candidate ten years ago or so. It was an easy decision to partner up with him – he’s the gold standard in the business, and he sees things the same way I do in my consultancy business (www.paulsculpher.com) – treat people well, do a good job, in ethical fashion, and they’ll come back to you for more work in the future. We’re in this for the long term, so we want to do the right thing and develop the same relationship for GRS that Steven has in his own name”. The industry, both online and offline, is constantly developing and maturing with the competition for the best talent getting stronger so the need for expert recruiters focused on a specific niche has never been greater. Time will tell whether GRS will be a pivotal part of that recruitment market, but it appears they have started well. Jackson commented “we’ve only been trading just over a month, and we currently have 12 roles we are in the process of filling. We have capacity for more, however – being self-employed we can flex our time to suit our workload – and we are tending to find that our reputation is already working in our favour”. With plenty of new start-ups to be seen in gaming specifically and industry in general, it’s a tough trading environment for everyone. GRS seem to be well positioned to take advantage of their network in a relatively small industry however, so one can only wish them well.

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Responsible Gambling Peter White interviews Roy Ramm Chairman Playing Safe & Governance and Public Affairs Director Caesars Entertainment UK

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One year from the launch of Playing Safe how has it been received by the Casino industry? Playing Safe has been very well received and we expect the level of acceptance to continue to increase as operators see that it adds differential value to casino operations. The industry owns Playing Safe. The attendees were a veritable who’s who of the British Gaming Industry. You must be delighted with the support that NCF has gained from the independent and major Casino operators. We were delighted. The industry has put an enormous amount of effort into Playing Safe and being able to tell such an esteemed audience about it was very rewarding. It also demonstrated to operators that their faith and commitment to Playing Safe is being recognised and acknowledged. Roy Ramm welcome speech set the tone for the rest of the evening and the follow on speech from Philip Graf. I think what was clear from both speeches is that the industry and the regulator are increasingly aligned on what is needed to improve player protection and to secure regulatory change for the industry. Can you explain to readers SENSE Self Enrolment National Self Exclusion, how does it work? SENSE is the first national self-exclusion scheme for an entire sector of the gambling industry. Actually, it’s a world first for any sector to take this on and produce a scheme without government support. This is industry led, industry funded and industry operated. For a customer, who is experiencing problems with their gambling and who believes they will be helped by excluding themselves from casino gambling, they will receive exactly the same advice wherever they enrol in the scheme and will be immediately excluded from all casinos in the UK. Their photograph and basic biographical details will be circulated locally, but will be searchable nationally. For operators, it means access to an easy to use effective web based system that operates in ‘real time’ and is as effective for small single business operators as it is for the major companies. We will be publishing more material about the system after the testing phase concludes towards the end of the year.

An important element of the scheme will be that for the first time care service providers will be able to enrol clients directly to the scheme. What are the core elements of the Code of Practice on Responsible Gaming? All of the major and many of the smaller operators have existing RG schemes. We are working to establish the core components of a RG programme, setting out a standardised approach. We know that many operators go beyond what the law requires and we want to ensure that our customers are aware of this. We have identified seven key components for a programme and we intend that an expert accreditation, certification and evaluation (ACE) panel will look at individual programmes and ensure that they meet or exceed the standard of the core programme. We’re very excited about the role of the ACE panel in what it can deliver for the industry. This industry lead responsible gambling programmes agenda, makes for a very busy year ahead? It is kind of you to recognise the work we have done and what we have achieved. It has been hard work and we have set ourselves a demanding agenda for 2015 – particularly around getting SENSE fully operational – but we have no illusions about the need to change the political perceptions of gambling. Our experience tell s us that unless we are really clear about the way forward on responsible gambling and can demonstrate the commitment of the business leaders to it, we are not going to give the government – whichever party wins the lection – the confidence to make change. Casino gambling is the safest form of gambling with the highest levels of engagement and protection. We need to build on that and ensure everyone who matters knows about it. Have you anything else you would like to add? We hope that all the sectors in the gambling industry use the IGRG as a vehicle to share experiences and bring cross sector initiatives to the table. We will.

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The Real Cost of NonGaming Attractions

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by: Victor H. Royer

have been in Las Vegas for 32 years. There was a time, seems like long ago now, when Las Vegas was about all things Casino. Everything was centered around the casino, through the casino, and for the casino. To go to check-in, guests had to go through the casino. To go to the elevator, guests had to walk through the casino. To go to the pool, to the restaurants, to the showroom, to the shops – well, you get the picture. That’s because the Casino is the most profitable – and

unique – attraction in a “casino destination resort.” Even run badly, or in a recession, a casino can generate anywhere between 20% to 40% of steady, dependable, profitability. It’s only when these profits are siphoned away by other “attractions”, or misguided “developments,” that the property as a whole begins to suffer. And sometimes close. Today, it seems that every corporation that owns and operates casinos in Las Vegas is forcing hundreds of millions of dollars into developments

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that have nothing to do with the casino. It’s this sudden and illogical mad-dash for all things NOT casino. Is it any wonder that casino revenues are falling? That visitors to Las Vegas aren’t focused on gaming as much as they used to be? Is this because people no longer like to gamble? Or don’t want to gamble? Not at all. People still want to play casino games. And they would play them more, and more often, and spend more – if it weren’t for all of these constant distractions that are being forced on them by corporate operators whose financial owners are based in Banks on the East Coast, and whose conceptualization of a “resort” is often limited to what they know: Something with a hotel, pool, shops, malls, arcades, and whatnot. Well, what about the casino? Oh, yeah ... That casino thing. OK, that too. So, herein lies the problem. Misperception of what a “casino” resort should be like, how to run it, what to develop in it, and from where to generate the profits. A resort with a hotel, pool, shops, malls, strolling walkways with trees, Ferris Wheels and Sports Centers can be found anywhere. In any city. There’s nothing “unusual” about this. Nothing “exciting”. What made Las Vegas different was the very fact that this was Las Vegas. A casino destination first, last, and foremost. The Neon Jungle. That’s what visitors wanted to see, and why they came. And why they gambled in the casino, and drove huge profits to the operators. Not so any more. Now Las Vegas is more like a sad copy of Wall Street, with casinos that look more like Banks and Office Buildings than casinos. Little or no neon, and the Strip lined with Palm trees that block the view and what’s left of the neon. Las Vegas is not Paris with it’s sidewalk Cafés and tree-lined Avenue des Champs-Élysées. Las

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Vegas is it’s own, unique, world destination. A Casino destination. Not a shopping mall, sports center, or Amusement Park destination. Short-sighted thinking from corporate owners and financiers of Las Vegas resorts is what’s causing the attrition of gaming revenues. This is also why the corporate owners and operators of Las Vegas casino resorts, and other such resorts elsewhere in the USA, are drowning in billions of dollars of debt. Debt which is ever-accumulating, and never seems to be reduced. Why? Because these corporations are spending more and more billions on more and more non-gaming attractions, and thus costing themselves the one resource that actually makes profits – the casino, and the casino player. So what is the real cost of non-gaming attractions? Here are some examples: A visitor to Las Vegas who rides the Ferris Wheel for one hour, will spend about $50 for the two tickets to ride it. The profit to the corporate owners, who spent $500 million building this “attraction” is about 1% to 6% per visitor. So, from this one guest, who just spent one hour on the ride for $50, the corporation can expect a profit of about 50-cents at the bottom end of the scale, to about $3.00 at the top of the range. Now take that same guest, and put him in the casino, in front of a video poker machine, with a house-hold of 2%. This same guest, over this same one hour, playing at an average speed of 400 hands per hour on a 25-cent machine with a $1.25 max wager, now spends $500.00 in total action. Compare this with the $50 which this same guest spent riding the Ferris Wheel. It’s a big difference. So, now, at a 2% house hold on this video poker game, the operator’s profit from this one guest for this one hour is about $10.00 at the bottom of the


scale, to about $20.00 at the top of the range. Yes, these are examples, based on a fixed model for the purposes of illustration, but the point here should be obvious. Which of these operational models would you want, if you were an investor? Or an owner and operator? Would you want to make a profit per guest of 50-cents to $3 per hour? Or, would you want to make a profit per guest of $10 to $20 per hour? Which of these two models will make you the most profits? Pay off your debts faster? Now multiply these examples by the number of guests to Las Vegas as a whole. Some 40 million visitors per year. Of these, about 86% will gamble at some point, on something. Mostly Slots, where the above example is even more profitable. Instead of just 2% house hold, now the operator has anywhere from 4% to 16% house hold on these games. Many of these visitors will also play Blackjack, and while the theoretical potential for Blackjack, with perfect play, can reduce the house edge to about 0.5%, the fact remains that most people play Blackjack so badly that the general standard for Blackjack profitability is actually somewhere between about 6% and 20% per seat, per player. But that’s not all. People who come to the casino will play more than one game. They will “try” and “experiment” with other games. Some of these are even more profitable to the operator, if only because these novice players don’t know how to play them, and so will add a huge edge to the house, in addition to the theoretical. So, overall, the entire casino operation cannot help but generate steady profits of between 20% and 40% overall, all factors being considered and limited to the casino only, without being diverted by other accounting methods elsewhere. So what’s the problem with casinos? With casino destinations like Las Vegas and Atlantic City? Why are gaming revenues falling? Because casino operators have lost sight of the meaning of what IS a “casino” destination resort. It’s not supposed to be the same thing you can find in New York, or Boston, or Philadelphia, or Portland, or anywhere else. It’s supposed to be unique to Las Vegas. Or unique to Atlantic City. Casino first, last, and foremost. That’s the difference between steady and large profits, or not. Put the neon back. Remove the Palm trees. These belong in Hollywood, not Las Vegas. Get rid of the sidewalk pseudo-French cafés and imitation Avenues des Champs-Élysées. Leave the sports centers and complexes to other cities that don’t have casinos. Las Vegas is different. So is Atlantic City. Embrace again that difference, and capitalize on it. Don’t make Las Vegas the same as any other city. Let it go back to the Neon Jungle it once was, as a shining beacon the world over. Do this, and the profits will flow like wine and honey, and the world will be with you. Don’t do this, and places like Macao will profit, while Las Vegas and Atlantic City will become ghost towns, dead from lack of understanding of where the profits really are. These are the real costs of non-gaming attractions.

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29/07/2014 11:37


Growth through diversification Chris Sanson interviews SUZO Happ, Executive VP Gaming EMEA Harald Wagemaker

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in 1955 by the Suverein family in Rotterdam, The Netherlands. At that time the focus was support for juke boxes from the USA. The juke boxes were very popular but contained a lot of components. Thus, we stocked all the necessary spare parts and that is how the business was born. We grew into spare parts and components for amusement machines. Naturally the next focus was for gaming. As the demand grew, so did our structure with European subsidiaries being opened in Great Britain, Germany, Spain, Belgium and Poland. The growth diversed to South America with offices being opened in Argentina and Brazil. The international demand for our solutions led to the next logical step – the merger with the largest spare parts and component supplier Happ Controls in the USA to form the Suzo-Happ Group. The next step was to secure the manufacturing base in China which was purchased from the company called Dynamics. The product lines offered by the company include currency handling equipment, display solutions, control devices, machine operation components, environmental products and consumables. The company’s almost 600 employees serve more than 20,000 customers worldwide. Suzo-Happ has manufacturing, engineering, distribution and service capabilities in 13 countries globally. Suzo-Happ is owned by Acon Investments, a Washington, D.C.-based private equity investment firm with more than $4.0 billion of capital managed.

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would like to commence this interview with congratulations on Suzo-Happ Groups 60th Anniversary, the amusement and gaming industry’s largest global supplier of spare parts and components.

So this would be a good opportunity to start with a brief history of the European part of the organisation. Indeed it is. Suzo International was founded

How has 2014 treated Suzo-Happ Group? 2014 has been a fast-moving year, a year of growth and diversification. We are quickly advancing into new markets with our solutions, such as vending and the industrial segments. Strategic acquisitions have brought us the required products to become almost a household name overnight in these markets. For gaming, we are very excited to have become the global distributor for Transact printers from January 2015 onwards. We are continually strengthening our product range and 2015 promising to be a very exciting year. Suzo Happ Group exhibit at an impressive

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amount of exhibitions and conferences throughout the year. What has been the feedback from those shows to your 2014 product range? That is true – we invest in participating in not just the major shows but the local shows as often as we can. That sends out the signal to our customers that we are there for them. We have the opportunity to show our latest solutions such as the ELO touchscreen range and now the Comestero products that belong to the company. For example, at the last local European show in Bulgaria, the BEGE, our customers expressed how pleased they were that Suzo-Happ is demonstrating its commitment to the local market. Suzo Happ Groups recent acquisition of Comestero increases your customer base and further opens up more opportunity for the organisation to expand. Comestero has been our Italian distributor for many years and we know each other very well. In particular we have learnt of the synergies available when bringing Comestero into the Suzo-Happ Group. Not only do we have a great immediate presence in Italy, Comestero’s product

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range is a strong addition. And let’s not forget that Comestero is active in many markets such as vending, car wash and parking. All this will support our growth. What can we expect for the ICE 2015? We can be found in the same position as last year at the ICE. Our stand will be bigger, though. Our stand is being sponsored by Comestero, ELO and Transact and all these companies will enjoy a prominent position on our booth. We are planning to celebrate our 60th anniversary in style at the ICE. And finally what are the company’s main goals for 2015? Our main goals for the gaming market are to continue our close dialogue with our customers to offer the best solutions possible with the best service possible. We will continue to have both ears wide open to the needs of the market. Our responses will be clear and precise. At the ICE we will be explaining just how we can create complete solutions for our customers. This is an example of how we focus on our customer needs and requests and turn them into innovation solutions.



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The importance of Gaming Licensing Investigation

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By John Flynn a 28-year veteran of the Nevada Gaming Control Board

n essential component of a strong gaming regulatory system is the requirement for in-depth “pre-licensing investigations” of the financial and background history of all persons and entities which seek a gaming license. The in-depth pre-licensing investigation is the first step in the process of approving legalized gaming while ensuring our citizens are protected from possible negative influences of legalized gaming. The investigative process gives regulators the opportunity to determine the suitability of each applicant. This helps ensure that licenses are granted to suitable, qualified applicants. The investigative process also helps regulators identify and exclude applicants which have a history of criminal behavior, corrupt practices, or other derogatory history. Strong gaming regulation is based on the concept that a gaming license is a revocable privilege. This places the burden on each applicant to demonstrate that they are suitable to receive the gaming license. That burden of suitability is met through the in-depth investigative process.

Required Disclosures

The gaming license investigation is widely recognized as an extremely invasive process which requires extensive disclosures regarding the background history and financial activities of each applicant. These disclosures are far more extensive than what is required for any other kind of business license.

In the gaming application, the applicant is required to disclose personal history information covering a period of at least 15 years. The applicant must provide detailed information and supporting documentation regarding personal and business financial activity for the previous three to five years. The applicant must also cooperate fully with investigators and provide any additional information which may be required during the investigation. In many jurisdictions, the disclosures made in the application and during the investigation are considered “under oath” and the applicant is subject to perjury charges for false or misleading statements. These disclosures are an essential requirement of the application process and the failure to fully disclose information can be a basis for regulators to deny the application. As an investigator, I have seen situations where the applicant did not receive the gaming license because of failure to meet these standards of cooperation and disclosure. These situations often involve failure to disclose problems about which the applicant is embarrassed. Sometimes the applicant intentionally withholds negative information believing investigators won’t discover it during the investigation. Additionally, applicants sometimes show a lack of candor regarding issues which are discovered during the investigation. In many situations, the failure to disclose information and the lack of candor about an issue become more significant in the licensing decision than the actual issue itself.

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Financial and Background Investigative Process

The pre-licensing investigation begins with the evaluation of the application and the formation of a plan for conducting the investigation. The goal is to ensure investigators conduct a sufficiently thorough investigation to identify important issues which could impact the licensing decision. The formation of the investigative plan includes important considerations such as: • The applicant’s past gaming history in that jurisdiction • Information from other jurisdictions where the applicant filed applications, was investigated, and was licensed or rejected • The extent of the applicant’s financial holdings and activities • History of criminal or unethical activity • History of non-compliance with government regulations The investigation begins with the analysis of the applicant’s personal and business financial activity. Analysis of financial activity is essential because it expands the view of the applicant’s life. The financial analysis reveals important details regarding sources of income, financial holdings, business interests, identities of business associates, and geographical areas where the applicant has lived and worked. The financial investigation analyzes personal income tax returns and cash flow activity. This helps determine suitability of sources and uses of income, compliance with tax laws, and if the applicant’s lifestyle is reasonable and consistent with the financial information they disclosed. The investigation verifies assets and liabilities, examines financial documentation for business interests, and identifies business associates and others who exercise significant influence in the applicant’s life. The background investigation incorporates the results of the financial investigation and expands the background procedures to cover not only the individual applicants, but also their financial activities, their business interests, associates, and sources of funding. This expanded examination of the applicant’s life enhances regulators’ ability to determine the applicant’s suitability.

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In many jurisdictions, investigators travel to the geographical locations where the applicant has lived and worked in order to perform background checks. Information can be obtained in a variety of different ways, but the best practice is face-to-face contact with law enforcement officers, government officials, and other sources of information.

Proposed Operation

The investigation examines not only the individual applicants, but also the proposed gaming operation. The analysis verifies that funding for the new gaming venture comes from suitable sources and is adequate to fund the proposed operation. The investigation verifies that the operation will be staffed by qualified, experienced, and suitable individuals. The investigation examines the proposed business plan for the gaming operation, proposed internal controls, and proposed surveillance and security plans to ensure the business complies with applicable statutes and regulations. The investigation further ensures that gaming devices comply with technical standards for that jurisdiction.

Investigative Trends

With the extraordinary growth in technology, the pre-licensing investigation must adapt to include technology in the investigative process. Computers, smart phones, and other date storage/processing devices have become an integral part of everyday life. Investigators must now consider adding forensic examination of these devices to the investigative plan. These extensive procedures make it clear that in-depth investigations can be expensive and lengthy. Applicants often must pay the costs of the investigation which may take several months to complete. This expensive, lengthy process is not always welcomed by the gaming industry and applicants frequently challenge the need for such investigations. Gaming regulators must consider these factors when developing strong regulatory systems and determining the extent of pre-licensing investigative procedures. However, the benefit of the doubt must be given to protecting our citizens and ensuring only suitable operators receive the privileged gaming license. That is best accomplished through the indepth investigative process.


2014

The magazine for the owners and management of international casinos


25 years of

Russian Roulette

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The gambling industry in Russia

t the time of writing, shareholders, politicians and industry authorities will be mulling over the content of annexed Crimea’s first gaming congress. This meeting of minds in sunny Yalta follows President Putin’s decision to sign a bill declaring Crimea an official ‘gambling zone,’ as reported by Right Casino. Crimea will join the Baltic enclave of Kaliningrad, the Altai territory in Siberia, Primorye in Far Eastern Russia and the border region between Krasnodar and Rostov as government-regulated oases where the nation’s typically tough gambling restrictions are suspended. In many respects, Putin’s decision to protect these ‘hubs’ against off-shore competitors and smaller domestic operations is comparable to the stance of America and Macau. But how well has this strategy fared for Russia’s gambling industry and what clues does the expansion of legal gambling into Crimea offer about the market’s future?

A brief history of gambling in Russia

Before addressing this question, it would be useful to

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look back at the history of the gambling industry in Russia since its legalisation. On August 23, 1989, shortly before the fall of the iron curtain, the Soviet government lifted its 60 year ban on gambling by opening the country’s first gambling establishment in Moscow. This was part of President Mikhail Gorbachev’s ‘perestrokia’ reforms (‘restructuring’), which sought to promote Russia on the global stage and rebuild the flailing Soviet economy. While Gorbachev’s move did nothing to prevent his political assassination in 1991, it did provide the Russian government with a new source of muchneeded taxation. Until 2009, gambling establishments were fairly widespread and conducted business largely unmolested throughout Russia. However, a tidal shift occurred following Russia’s economic crisis in the noughties, as the government felt that the underground or illicit gambling dens dotted around Russia were depriving the state of its tax revenue. Consequently, a bill signed by Vladimir Putin in 2007 (which came into effect on 1 July 2009) restricted gambling activities to the aforementioned ‘gambling


zones’ in unoccupied regions of Russian territory. As a result, Russia’s gambling market was forced, wholesale, to up stakes and move to Putin’s designated zones, costing Russia around 5-6 billion roubles ($160-190 million) in tax revenues over the course of a four year transition. Pleas by major establishments in Moscow and St. Petersburg fell on deaf ears, while Prime Minister Dmitry Medvedev vowed to “swat” any underground operations running their business outside of the new gambling zones. It was felt that this governmentregulated ‘hub’ model would solve the dual function of making it far easier to collect taxes and placate the increasingly assertive Christian right by directing the social ‘evils’ of gambling away from population centres.

“We see a great desire of officials at all levels to promote the organization of the Congress, which shows the importance of the creation of a gambling zone for Crimea and the importance of this event for the business,” the conference coordinator Yana Pastushko told PokerNews. “Crimea is a resort peninsula. Apart from relaxing on the beach, millions of tourists look for other entertainment. The legal gambling establishments are perfect for a fun pastime,” Pastusko continued. Highlighting benefits to locals, she added: “For the local population, [the gambling zone] means thousands of additional workplaces and, for the authorities and business, an opportunity to receive additional investments.”

The current state of affairs

Betting on Crimea

Today, Russia maintains a zero tolerance policy towards national and international competition for these government-sanctioned gambling zones. Online gambling of any kind is banned as the Russian government has yet to approve a domestic operator. While Russian punters have continued to gamble overseas (particularly at online sportsbooks), a 2012 ruling by the Russian courts has determined that Internet Service Providers (ISPs) are legally obliged to block gambling sites. ISPs who permit Russian citizens access to ‘blacklisted’ brands (including William Hill and Ladbrokes) risk having their licenses revoked. The achievements of this fiscal/political pragmatism have been mixed. While the Russian gambling market generated around $5.5 billion in annual revenues in 2009, only 8% of that was accrued in tax payments. Unsurprisingly, the recent inclusion Crimea within Russia’s legal gambling industry has been highly controversial. Aside from its uncomfortable proximity to the political and military turmoil over Crimea’s annexation, the new bill (approved by the Russian Parliament on 10 July) is the first to introduce gambling to an already populous tourist destination. Pre-empting the inevitable criticism, Moscow-based conference organiser, Smile Expo, immediately called for an industry meeting. The Crimea Gaming Congress was assembled in Yalta on 22 August 2014, gathering international investors and national operators with the goal of highlighting the economic benefits of bringing regulated gambling to the region. Politically speaking, it is also hoped that the introduction of gambling will help Crimea towards self-sufficiency, making it less reliant on Moscow. Speakers at the summit included Nahlupin Vitaly Hermanovitch, Chairman of the Standing Commission of the State Council of the Republic of Crimea and Maria Lepschikova, legal advisor to the Russian government.

Pastushko’s enthusiasm might be premature, as Crimea potential value as a gambling hub has been called into question by international observers. The overwhelming silence from foreign operators highlighted a general scepticism over the idea, which Howard Stuz of the Wall Street Journal described as “laughable.” Among the more high-profile dissenters in Steve Gallaway, a partner of U.S.-based Gambling Market Advisors, whi told The Wall Street Journal that Crimea “has no value” as a casino destination. “Russians don’t go there on vacation.” Also, Russia’s four gambling zones have acquired a reputation as hotbeds for organised crime, with one expert describing Vladivostok in the Primorye region as “overrun by gangsters posing as legitimate business operators.” This possibly explains the modest tax returns from Russia’s current gambling market. This all goes without mentioning the sensitive issue of Crimea’s sovereignty. Given that most of the rest of the world refuses to acknowledge Russia’s claim to the region, this factor alone is probably the biggest turn-off for potential investors. In all, Crimea is too politically hot to sustain the mass international tourism that Putin requires to justify investment in the region. What’s more, the new bill is very much out of step with the centralisation and pragmatism that have characterised Russia’s approach to gambling legislation since 2007 and possibly anticipates a sea change. Together with the Ministry of Finance’s mandate to evaluate the possibility of legalising online poker in Russia, Putin’s designs for Crimea speak to a possible trend towards liberalisation. Whether, as Poker News anticipates, Russia is on the brink of launching a regulated online market remains to be seen, but it is evident that Putin is starting to lengthen the leash of Russian gambling regulation.

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James Boje new head of Aristocrat EMEA

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xperienced gaming industry executive James Boje has been appointed to the post of Managing Director for Aristocrat’s Europe, Middle East and Africa region, subject to receipt of the necessary regulatory approvals. In a gaming career spanning almost 30 years, Mr Boje has held senior executive positions for some of the most respected brands in the industry, encompassing slot operations, manufacturing, machine distribution, live gaming, lotteries and money handling solutions across European and African territories. Mr Boje began his career as a slot technician at Sun International’s Sun City Resort, before moving into general management for Score-a-lot (scratch cards and VLT solutions) and Sybertronix Gaming (distribution). In 1999 he joined IGT Africa as Sales

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& Marketing Manager, before being promoted to Managing Director, Africa in 2001 and later Managing Director, Europe. Since 2011, Mr Boje has worked in senior roles for MEI, Zitro and Crane Payment Innovations. Mr Boje takes up his post immediately, reporting directly to Mrs Maureen Sweeny, Aristocrat Chief Commercial Officer. Mrs Sweeny said, “I am delighted to welcome James to Aristocrat in this important leadership position. “He has a proven track record of driving strategic growth initiatives and balancing commercial and customer requirements whilst maintaining a strong focus on people and a high performance culture within the business. “James’ extensive industry experience positions him to deliver strong results for Aristocrat’s EMEA customers, staff and suppliers, and we look forward to his contribution,” Mrs Sweeny concluded.


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G2E Las Vegas 2014 celebrates Alfastreet’s 20th anniversary

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his year’s Las Vegas G2E has offered once again a very special experience to everybody present and has been extremely satisfying for Alfastreet team. A brand new stand design has provided a unique celebratory stage for our newest products, which have attracted many visitors from all over the world. Alfastreet’s customers, friends and partners

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have appreciated once again the classy, advanced and technologically superior products, faithful to the genuine spirit of the games. The response from the visitors was overwhelming, confirming the direction of our development. The global presence of the brand requires products that have to be adapted to many different specifications yet retaining the distinctive



SPOTLIGHT – G2e LV

style and architecture that makes them stand apart from any competition. Alfastreet is present in nearly 90 countries of the world and we have had visitors on the show that came from everywhere. It shows the effort our team has made to design machines and games that are successful despite the great differences between specific markets, making Alfastreet a global gaming reality. The latest versions of our popular games, such as Roulette (auto or live), Sic Bo, Craps, Poker and the genuine show piece, the attractive WoF have been paired with our cabinets, which have premiered in the USA. The R4 roulette has been shown for the first time in the US market. With familiar features and proven technology in a compact, attractive design, offering unprecedented gaming experience to the players due to the proximity of the wheel and the intimacy of a single gaming position, it is the ideal choice for all the venues with limited space availability and a very special addition to the exclusive VIP lounges. As all of the Alfastreet machines it can be fully customized and adapted to each operator’s individual needs and specifications. The visitors have been stunned by the pristine gaming experience and there are already orders pending for the US markets. Another highly anticipated premiere was the 2014 Alfastreet WIKY single terminal with the

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largest touch screen in the industry at the moment. The massive 32” touch screen monitor offers incredible visual impact and countless options for the players yet retaining almost identical outer measurements to our award winning SL single terminal with 23” touch screen monitor – an important factor for all gaming floors. All visitors of the stand have remained stunned by the sleek silhouette and technical performance of the WIKY. They had the opportunity to test all of the machines interconnected, understanding the endless connectivity options and versatility of a modern Alfastreet product. This year’s edition marked another important step for Alfastreet; the partnership with the company KGM has been announced during the show and it marks a new direction in the already extensive efforts on the US market. Both parties are extremely pleased and eager to contribute to the

success of the joint venture and placement of the Alfastreet’s brand to the place it deserves – the very top. G2E once again proved itself to be one of the big three among the gaming conventions and exhibitions of the world and an extremely important showcase for Alfastreet’s products. The attendance was really great and we are satisfied with the outcome so far. We are grateful to everybody that came to see us, testing our production or just stopping by for a chat and we can hardly wait for the next one to meet again.


Lucien Barriere Hotel | Lille, France | 25-27 November 2014 The Hilton | Bogota, Colombia | 10-12 December 2014

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