www.revistacasinoperu.com
OCTOBER 2018
1
US / REPORT
2
OCTOBER 2018
www.revistacasinoperu.com
Cover SPECIAL US SPORTS BETTING
AN INNOVATIVE GLOBAL PERSPECTIVE With a unique, attractive and versatile focus, which proposes an agile reading through a comprehensive professional content in a high quality design, CASINO Magazine is proud to present this fourth English special edition for the Global Gaming Expo 2018 (G2E) in Las Vegas, United States. In the genesis of this edition, some key objectives were raised: to be up-todate, innovative and to provide a detailed, in-depth and global view of what is happening right now in the international gaming and entertainment industry.
Production
MCA Publicaciones S.A.C. Calle Luis Mannarelli 105 Of. A 2do Piso Magdalena del Mar - Perú Teléf. (511) 264 4314 E-mail: info@revistacasinoperu.com Manager Director
María Victoria Cabrera I. mariavictoria@revistacasinoperu.com mariavictoria@mcapublicaciones.com.pe Administration
Marco Cabrera administración@mcapublicaciones.com.pe Editorial Committee
Román Frymer roman@revistacasinoperu.com Designers
Mayra Martinez Loza Korita Upiachihua Silvano Photography
MCA Publicaciones
We believe we have achieved those goals with this special product for our readers. You will find here some topics of greatest interest to operators, manufacturers, regulators, distributors and other members of the gaming industry. The information is focused on the United States market, but it also covers Europe, Africa and, of course, Latin America, in order to reveal current sector’s situation. Regarding the United States, we review the ups and downs on President Donald Trump’s economic strategy, the latest data on the sports betting market, the delicate security situation in casinos, the commercial possibilities generated by non-gaming segment, the policies on responsible gaming, the essential role of women in the industry, the increasing use of alternative and renewable energies in the gaming properties, a G2E Las Vegas preview, the latest trends in the sector, with skill-based gaming and advancement of daily fantasy sports, and the unknown tourist attractions of Las Vegas. In addition to this valuable material, there are an analysis of the online gaming market in Malta, a pioneering country in regulation, the concrete progress of iGaming in Latin America, and the huge business’ opportunities provided by gaming in Africa. Likewise, we have to highlight the authoritative opinion on blockchain and cryptocurrencies from our special columnist, the experienced executive Harmen Brenninkmeijer, Managing Partner of Dynamic Partners International. To complete this collection edition of CASINO Magazine, interviews can be enjoyed with leading companies and important organizations in the gaming sector, such as IGT, Merkur Gaming, Novomatic, Ainsworth, GLI, JCM Global, Casino Technology, Betgenius and the American Gaming Association. Of course, this special English edition is another original and exclusive product of CASINO Magazine, which for 19 years has been accompanying its readers covering the news of the industry with its usual monthly editions in Spanish. We only have to thank the gaming companies for their constant support in all that time and welcome them to this edition, which will surely be read from the first to the last page with interest, curiosity and satisfaction.
Presse S.A.C. Jr. General Varela 2030, Pueblo Libre
Kind regards,
© Reproduction in whole or in part is prohibited without the authorization of the publishing company. The signed articles are from responsibility of its authors, as well as the advertising designs of the contracting companies. Made the legal deposit in the National Library of Peru 2006 - 5723
OCTOBER 2018
3
contents 06
October
The world according to Trump
09 14
US sports betting: Main keys for a billionaire market
25
Women’s voices need to be heard
30
Going green and clean
32
Las Vegas to discover
34
The emergence of blockchain
Security as a priority
17
Non-gaming: Enjoying a special experience
4
OCTOBER 2018
www.revistacasinoperu.com
OCTOBER 2018
5
US / REPORT
United States at a crossroads
THE WORLD ACCORDING TO TRUMP
Both in its economic and foreign policy decisions, Donald Trump seems to increasingly isolate the country from its international partners and allies.
A
man of controversial personality and elusive popularity, the presence of Donald Trump in the world’s scenario is an inevitable element to be considered in any geopolitical analysis. There are some political experts who see in the actions and determinations of current president of the United States an unexpected return to the 19th century’s Mon-
6
OCTOBER 2018
roe doctrine: “America for the Americans”. Under slogans such us “Make America great again” or “America first”, Trump has led different proposals that follow that line of thinking. For example, he approved the withdrawal of his nation from the trade negotiations of the Trans-Pacific Partnership and the Paris Agreement, a global initiative that combats the climate change. Shortly
after, he stopped the ‘Cuban thaw’, a diplomatic and political approach initiated by Barack Obama in 2015. Regarding Middle East, Trump decided to move US Embassy in Israel from Tel Aviv to Jerusalem, and finally, he chose to pull the United States out of the Iran nuclear deal. All of these important foreign policy decisions were taken in less than two years.
www.revistacasinoperu.com
TARIFF BARRIERS To make matters worse, last March, the United States applied new tariffs on imports of various products from China, Canada, Mexico and the European Union (EU). What at first seemed to work “great”, as Trump said on Twitter, became a double-edged sword. This risky measure (up to 25% on taxes to Chinese shipments of steel and aluminum) has affected income of the West Coast ports. For example, in New Orleans, imports of these metals have been reduced by 25%. In retaliation, the new steel tariffs have forced the EU to stop the import of American corn to the continent. Despite this, Trump still plans to apply tariffs on furniture, carpets, tires or clothing in more than 250 ports, airports and land terminals in 48 states of the country.
TRADE WAR The uncertain direction of imports ironically differs from the improvement in exports. US exports grew at a 9.35% rate in 2Q 2018, while US imports increased only 0.5%. Economists anticipate that a potential China-US trade war would damage this pace. Besides, there is a tense diplomatic relationship with North Korea. The White House accuses China of this complicated bond, due to the commercial dispute between both countries. However, the US president is confident that the economic gap between the two giants will be reduced. “When I arrived at the White House, we were heading to a certain direction that was going to allow China to be bigger than us in a very short period of time. That is not going to happen anymore”, he said. In fact, the International Monetary Fund (IMF) has predicted that, in 2022, the US economy will surpass the Chinese one by more than USD5 billion. In any case, there are indicators that show that, if both nations maintained their growth rate, the Asian country would consolidate as the world’s biggest economy in a decade.
SEARCHING FOR AGREEMENTS While China and other strategic markets analyze responses to US tariff hikes,
Now, the United States seeks to close the gap and agree with Russia.
The uncertain direction of imports ironically differs from the improvement in exports. US exports grew at a 9.35% rate in 2Q 2018, while US imports increased only 0.5%. in Helsinki (Finland), the old geopolitical rivalry between Russia and the United States seemed to be forgotten. Last
July, that city hosted a meeting between Vladimir Putin and Donald Trump. In the Middle East agenda, both leaders agreed on supporting the defense of Israel’s borders and start a military cooperation in Syria. Trump suggested his Russian counterpart and his allies to avoid an attack over the rebel province of Idleb. Nuclear power would be the main issue for a second assembly. According to the Stockholm International Peace Research Institute (SIPRI), the United States and Russia accumulate between 6,800 and 7,000 nuclear weapons, respectively. That is 90% of the existing nuclear arsenals in the world. The possible meeting could take place in Singapore, when both
THE VOICE OF THE PEOPLE Few results like those from the United States presidential election of 2016 have left US voters so dissatisfied. Back then, Barack Obama’s government diluted between social policies and fiscal adjustments, while Democrat Hillary Clinton and Republican Donald Trump were engaged in a close race to the White House. Finally, the popular businessman imposed on his contender (304 to 227 votes) through the Electoral College system or ‘indirect suffrage’. This system rewards some states (California, Texas or New York) with a greater number of votes over other states with lower demographic density or parliamentary representation. Despite its evident unpopularity, the Republican candidate took advantage of heated controversies and confrontations in public opinion. It can be considered that his nationalist position was an aspect valued by a large part of the electorate, which allowed him to become the 45th president of one of the most powerful nations on Earth.
OCTOBER 2018
7
US / REPORT
leaders attend to the 33rd ASEAN Summit (November 11th to 15th), or maybe later, at the G20 Summit in Argentina (November 30th to December 1st).
SOUTHERN NEIGHBOR Alternating between irritation and more relaxed moments, the relationship with Mexico has a central importance on Trump’s international politics strategy. An economic cooperation agreement has helped to reduce tensions after the controversial decision of Trump to build a wall between the two countries. With his Mexican counterpart, Enrique Peña Nieto, Trump has already begun negotiations to update the NAFTA. Canada will not take part on this first stage. After 24 years, NAFTA is considered a successful commercial integration between its three members. This agreement implies one billion dollars a year in commercial exchange, so in this new phase, there are good expectations for the US and Mexican economies.
ECONOMIC FLUCTUATIONS Every time Trump meets with other world leaders, he comments with great pride on the good state of the North American economy. Among its greatest achievements is the reduction of the trade deficit by more than USD50 billion and having reached the lowest unemployment levels in country’s history. In addition, he highlights economic growth in the second quarter of 2018, with an
Mexico remains disappointed by the treatment received from the North American leader.
annual rate of 4.1%, the fastest growth rate since 2014. This new GDP figure is almost double the growth of 2.2%, registered in the first quarter of 2018, according to the Department of Commerce. Financial analysts, nevertheless, consider that this positive impulse is “unsustainable” by its temporary factors: the consumption was boosted by tax cuts in order to increase spending, and the fastpaced export of raw materials, before the new tariffs came into force. Experts predict last quarter growth will be slower, with a more sincere and solid rate of 3%. As in his days as real estate developer in Queens, New York, Trump emphasizes his economic achievements looking to November legislative elections.
CHANGES TO ENVIRONMENTAL REGULATIONS The United States has just launched a proposal to make caps on carbon dioxide (CO2) emissions more flexible. This Affordable Clean Energy (ACE) Rule expects to reduce by USD400 million per year the burden that the local industry has to bear due to previous regulations. Unlike the Clean Power Plan (CPP), the demanding environmental legislation approved by former US president Barack Obama, the recent regulations will help to reduce the energy costs of industries between 0.2% and 0.5% for the 2018-2025 period, despite a rather skeptical view from environmental organisms. The United States Environmental Protection Agency (EPA) estimates that the ACE Rule could diminish CO2 emissions by up to 1.5% in 2030. Besides, Trump’s plan also establishes a three years period for states to set their own standards regarding the regulation of limits for the use of coal.
8
OCTOBER 2018
DOMINO EFFECT However, “the unpredictable factor” of the US president can appear once again, according to analysts. In the words of Anne Applebaum, Washington Post columnist: “Trump is the reflection of a reality show culture. He was a star there, and it is natural that he has migrated to politics”. That would explain why the S&P 500 recently fell on the New York Stock Exchange, after two of Trump’s former advisers faced serious legal issues. One of them, Paul Manafort, former campaign manager for the Republican Party, has been found guilty on eight counts of financial crimes. Meanwhile, Michael Cohen, former personal lawyer of the current president, pleaded guilty to eight criminal charges, including tax evasion and bank fraud. He even claimed that Trump forced him to commit a crime. The market also reacted to the Federal Reserve’s decisions and to ups and downs in trade negotiations between China and the United States. It is not a surprise that a recent Washington Post-ABC News poll showed 60 percent disapprove of Trump’s performance at the White House, the highest negative rate for his presidency. Up to now, the “American dream” proposed by Trump is far from the glamorous success and high ratings of the TV franchises where he used to participate.
www.revistacasinoperu.com
Good numbers for states
US SPORTS BETTING: MAIN KEYS FOR A BILLIONAIRE MARKET
Gambling entities, professional sports leagues, industry operators and companies, state and federal governments are still trying to find their role in this new and promising market, whose annual revenue could be worth as much as nearly USD16 billion.
T
he US Supreme Court overturned the 1992 Professional and Amateur Sports Protection Act on May 14th, creating a path for states to legalize sports betting if they choose. After five months, it can be confirmed that legal sports betting have been widely accepted by the industry and its stakeholders. Outside of the established Nevada sportsbooks, betting is now legal in Delaware, New Jersey, Mississippi and West Virginia. Pennsylvania and Rhode Island, while having legislation in place, are expected to offer legal bets in mid-October. Of course, in addition to
the money that can be gained with the exploitation of sports betting in the United States, it is essential to create a safe and responsible framework for players, in order to ensure the integrity of bets for the US sports leagues and reaffirm the honesty and professionalism with which sports competitions will take place.
MORE STATES JOIN THE LIST In only four months, five states have established legal, regulated sports betting industries: Nevada, Delaware, New Jersey, Mississippi, and West Virginia. Two more state-regulated industries
are expected to launch in the coming weeks:: Rhode Island and Pennsylvania. In addition to the states with fully legal sports betting, a couple others have put partial laws in place pending further action: New York and Connecticut. Then, there are lots of states which have passed sport betting bills that may be discussed during the rest of the year or in 2019: California, Kansas, Oklahoma, Iowa, Missouri, Louisiana, Michigan, Illinois, Indiana, Mississippi, Ohio, Kentucky, Massachusetts, South Carolina, Maryland and Connecticut. Sports betting projections paint a prospering marOCTOBER 2018
9
US / REPORT
ket. If 32 states allow sports betting over the next five years, both in person and online, annual gaming revenues in the United States could reach USD6 billion by 2023, according to a report from the research firm Eilers & Krejcik Gaming. But if all 50 states would legalize such betting, annual revenue could hit USD15.8 billion in five years, on nearly USD245 billion in total bets placed. But what has been happening with the states that regulated bets? Nevada’s sportsbooks collectively won a record USD248.7 million last year, or just two percent of overall GGR, according to the Nevada Gaming Control Board. This FanDuel was one of the first operators to enter the US sports betting market. means a profit of 5.1 percent on a total USD4.8 billion in wagers. Revenue set the stage for another jump in Sep- month. The Delaware Sports Lottery has from basketball and football wagers to- tember. In Atlantic City, legal sports bet- recorded an increase of 53% in net revetaled USD164 million. Figures released ting boosted monthly August results and nue from sports betting proceeds in the by the New Jersey Division for Gaming helped nine operational casinos obtain state’s second full month of offering the Enforcement, showed that online gam- their biggest growth in several years. service. Net proceeds for the period beTotal gaming rev- tween July 30th and August 26th were bling revenues conenue amounted to USD706,000, up from USD460,000 tinued double digit Outside of the USD303.9 million, gained in the previous month. The growth in August up 24.1% year-on- growth in revenue came in spite of a 2018, rising 17 perestablished Nevada year. Atlantic City’s 6% decline in money wagered, which cent year-on-year nine operational fell to USD7.7 million. All of these posito USD24.8 million. sportsbooks, betting is casinos generated tive numbers prove that sports betting Besides, New Jernow legal in Delaware, USD269.9 million, legalization in those territories was very sey’s sports betting sector delivered New Jersey, Mississippi reflecting a 20.7% beneficial for both, local governments increase from the and companies. One of the key factors USD95.6 million in and West Virginia. same month a year to this early success has been the willwagers during the earlier. Online gam- ingness to forge partnerships between month, more than twice that bet in July this year. So New bling operations brought in revenue of operators and providers of technology. Jersey’s sportsbooks saw a 135 percent USD24.8 million in August, up 16.6% increase in wagers and 139 percent in- year-on-year. Revenue from sports DEALS AND ASSOCIATIONS crease in gross revenue in August and betting totaled USD9.2 million for the By the indicators just mentioned above, business appears as very profitable for most players in the gaming sector. Of course, to implement bets, operators will depend on partnerships with established third parties. A large number of examples of successful associations of companies with a vision to the future can be cited. William Hill started out in New Jersey at Monmouth Park racetrack on June 14th. The Borgata casino in Atlantic City went live on the same day while William Hill’s Ocean Resort sportsbook began trading on June 28th. Also in June, FanDuel opened a 5,300-square-foot sportsbook at the Meadowlands Racetrack in New Jersey, becoming the first originally online Meadowlands Racetrack in New Jersey has opened to this new scenario. 10
OCTOBER 2018
www.revistacasinoperu.com
company to get its first brick and mortar sportsbook. FanDuel earned a sports betting first by being the only company to open a sportsbook in a private casino in America, the Casino Club at the Greenbrier at White Sulphur Springs in West Virginia. In July, GVC Holdings agreed to set up an online betting platform in the United States with US hotel and casino operator MGM Resorts International. Bet365 signed an agreement with the Hard Rock Atlantic City casino to start sports-betting service in New Jersey. Besides, sports betting operator Paddy Power Betfair planted its flag in the US market by entering into a partnership (through subsidiary Fanduel Group) with casino group Boyd Gaming. The competitor DraftKings closed a deal with New Jersey’s Resorts Casino for installing its sportsbook. While The Stars Group launched BetStars online sports betting in New Jersey through its partnership with Resorts Casino Hotel. Another association of The Stars Group was with Mount Airy Casino Resort Partner to launch online sports wagering and gaming in Pennsylvania. In September, Caesars Entertainment and 888 Holdings were the latest operators to launch in New Jersey’s online sports betting market. Caesars’ online sportsbook is run by Scientific Games’ OpenBet platform and will feature online casino games. The platform is accessible on mobile and online. Scientific Games had previously dealt with Caesars to launch sports betting in Mississippi via
William Hill is increasing its business in America.
OpenBet product suite. SG rival, International Game Technology, announced that its PlayShot sports betting platform powered online and mobile sports betting in New Jersey via FanDuel Group’s consumer-facing wager website, sportsbook.fanduel.com.
If 32 states allow sports betting over the next five years, annual gaming revenues in the United States could reach USD6 billion by 2023. Other important news was that, in August, the Rhode Island Lottery chose IGT and commercial partner William Hill US to provide sports betting services at the state’s licensed video lottery and table game establishments, Twin River Casino and Tiverton Casino. Sports betting operations are expected to go live at both locations by mid-November.
US SPORTS LEAGUES ALSO PARTICIPATE Although at first they opposed the decision of the Supreme Court and requested an ‘integrity fee’ that had not yet been answered, US sports leagues are anticipating good business prospects. According to AGA and Nielsen’s report, the NFL could gain from legal
sports betting a total of USD2.33 billion. Besides, the NFL is projected to generate combined incremental revenue of USD573 million per year through TV advertising, sponsorship, and data / product revenue created by gambling services. Indeed, 92 percent of current sports gamblers said they’re more likely to watch a game when they have a bet on it. The National Basketball Association (NBA) became the first US major sports league to take advantage of the federal law change, agreeing a USD25 million multi-year partnership with hospitality and entertainment giant MGM Resorts International. The deal with the sports betting operator has seen MGM Resorts become the official gaming partner of the NBA and the Women’s National Basketball Association (WNBA). More recently, sports book operator William Hill US inked a partnership deal with NHL’s Vegas Golden Knights. Also, the Dallas Cowboys (NFL) named WinStar World Casino in Thackerville, Oklahoma, as the team’s official casino partner. At the same time, while the NFL has already started to allow casino advertising at its stadiums, New York Jets, the NFL team from the New York Metropolitan Area, communicated it’s looking for a team sponsor from the betting industry. These examples are another sign of the growing popularity of the newly legalized sports betting in the country.
A UNIQUE OPPORTUNITY The short to mid-term outlook for sports betting in the US remains encouraging. Ted Leonsis, who owns the NBA’’s Washington Wizards, the WNBA’’s Washington Mystics and the National Hockey League’s Washington Capitals, said: “I think that the increased transparency that will accompany more legalized betting around the country will only further protect against potential corruption.” He concluded: “I anticipate a domino effect at a regulatory level from State to State. I believe that every part of the value chain around sports will need to reimagine its business model. This challenge will stimulate innovation and investment. It is a unique opportunity that we can’ let go. “ OCTOBER 2018
11
US / REPORT
12
OCTOBER 2018
www.revistacasinoperu.com
OCTOBER 2018
13
US / REPORT
Is the casino industry still a soft target for an attack?
SECURITY AS A PRIORITY After last year’s deadly shooting at Mandalay Bay in Las Vegas, lots of efforts and investment have been done by operators in order to enhance security measures and prevent possible new threats to its guests and employees.
I
t was October 1st 2017 in Las Vegas, United States. The whole world was shocked and saddened by the tragic news of the deadliest shooting in modern US history. A gunman (Stephen Paddock, 64, a ‘lone-wolf’ who committed suicide after the massacre and had 23 weapons in the room) opened fire during 11 minutes from his suite at the 32nd floor of the Mandalay Bay Hotel (MGM Resorts International), killing 58 people and injuring more than 700. Hundreds of meters down the room, a crowd of 14
OCTOBER 2018
22,000 persons was attending an outdoor country music concert, the Route 91 Harvest festival, organized by Live Nation. The concert was taken place on a 15-acre lot across the strip from the hotel and casino. After that night, a change (on policies and on the concept of danger in a property) was made by casinos and hotels operators. Up to that date, in the US, there were no common security standards across the hospitality industry. The general trend was to prioritize convenience, not increased security.
OUTDOOR AND INDOOR SECURITY The challenge was not only to reinforce safety in different spots inside the casinos, but also outside of them. How to prevent attacks in large outdoor events? One option was to coordinate security professionals working together with local forces and authorities. Other recent strategies were to post snipers over-watch positions looking outward to check any potential high-ground threat, searching for suspicious people in upper floors of
www.revistacasinoperu.com
nearby buildings that look into the event, and using surveillance drones to monitor the people from the sky. There is also the ‘predictive threat analysis’, a security technique that focuses on spotting signs of trouble and disrupting attacks before they take place. These more specialized security systems for outdoor events are expensive. Billboard music magazine reported that security spending for major festivals increased by USD100,000 to USD250,000 per festival during 2018. The indoor security required another perspective for casinos not being again a soft target. These changes included several enhancements. Major hotel chains and casino operators in Las Vegas spent monetary resources beefing up their security. They hired heavily armed private SWAT teams trained by FBI, CIA and military experts, K-9 units, undercover detection squads, hidden metal detectors and hi-tech surveillance technology. In recent months, the specialists have been secretly working with the security teams of the casinos, training them to deal with a wide range of potential security problems, including active shooters and suicide bombers. In order to not disturb or alarm guests, everything has been kept under the radar and quietly introduced behind the scenes. According to an investigation from the Daily Mail newspaper (UK), Wynn Hotels representatives revealed: “Our security program includes
Mandalay Bay was one of the many resorts that strengthened their security policies.
Several initiatives were carried out to advance in terms of prevention, control, monitoring and learning on the best ways to maintain safe rooms and happy visitors. crisis and tactical response, a K-9 team, mobile and stationary officers, surveillance, and other departments which the
company does not disclose. The Las Vegas Metropolitan Police Department also maintains a presence at the resorts.” In the case of MGM Resorts International, the company developed an ‘Emergency Response Team’ (ERT) Program to assess and address security risks. That program provides highly skilled and focused support to the property security teams. In terms of special technology, analytic cameras were installed in different casinos of Las Vegas, not only to watch the premises, but to automatically send alerts to security guards when they detect certain suspicious behavior. New advanced metal detector systems were also being rolled out in other hotels on the Strip. For instance, Westgate Las Vegas Resort & Casino started using the Patscan Cognitive Microwave Radar, from the company Patriot One Technologies. This radar is small enough to fit into turnstiles, doorways and panels, and can detect a range of concealed weapons, including knives, pistols, rifles, machetes and pressure-cooker bombs, using a weapons database. If a match is made, the device sends a sign that notifies the hotel’s security system.
LEGISLATION AND COMPENSATION
Monitoring is essential to detect possible threats.
Of course, the focus is on prevention, on avoiding this kind of attack from repeating, with its disastrous consequences. But, parallel to this process, OCTOBER 2018
15
US / REPORT
Tragedy hit the heart of Las Vegas hard.
a legal battle was developing between the survivors and relatives of the murdered and the companies involved in the event, MGM Resorts and Live Nation. In the first place, it should be noted that there were no laws governing standardization of security measures on Nevada hotel properties and no laws requiring standardized training for security personnel working for the hotel industry. Even worse, about gun control, Nevada law allows a person to carry a concealed weapon with a permit; it does not restrict the number of weapons to person may own. Semi-automatic weapons are also prohibited in the state as long as they are registered and are possessed in adherence to federal law, and neither are machine guns, according to the National Rifle Association. US Congress is still eluding the debate about regulating gun ownership. A lawsuit was filed by more than 1,400 survivors and victims’ families against MGM Resorts and Live Nation, the festival promoter. The litigation could take years to unfold. The lawsuits argue that the hotel and its parent company should have taken greater security measures. If the victims win in court, it could change how hotels handle security. Firstly, MGM reaction was to sue hundreds of victims of the shooting to avoid paying out for lawsuits. The company’s case rests on the Support Antiterrorism by Fostering Effective Technologies 16
OCTOBER 2018
of 2002. That law limits liability when a company or group uses services certified by the U.S. Department of Homeland Security. MGM claims that the Act protects them from liability because they hired a security company certified by the DHS. A second strategy was announced on September. The casino operator offered to make USD500 charitable donations for each person who waives or has their lawyer accept legal notice of the lawsuits. MGM has insisted its lawsuits, which don’t demand money, are meant to avoid years of costly litigation. As part of the offer, each victim would choose a charity that supports survivors or families of slain victims, and the donation would be made in his or her name. MGM could end up donating close to a USD1 million if everyone took its offer. MGM says it would rather make the donations to charities than spend the money to pay people to serve the legal notices.
A COMMON CITY EFFORT FOR PEACE Each year, more than 40 million tourists arrive to Las Vegas in search for fun and entertainment. Most of them visit casinos. Operators know that security has to be effective, but not intrusive. Some steps have been taken in that direction. On November 2017, Mandalay Bay and Delano hotels (MGM Resorts) set up permanent guard posts by el-
evator banks leading to rooms. Wynn Resorts placed guards at the entrance to the building to scan visitors and their bags. Moreover, Caesars Entertainment joined other gambling and hospitality companies with policies requiring guest rooms to be checked periodically, even if a “Do Not Disturb” sign is in use. Those operators include Disney, Hilton, MGM Resorts, Wynn Resorts and Boyd Gaming. The frequency of checks ranges from 12 hours to two days. City authorities are also doing their part in order to help and bring peace to their territory. Members of Congress announced that the Las Vegas metropolitan area has received a USD5 million grant (from the Department of Homeland Security, under the Urban Area Security Initiative) to help protect the city against potential terror attacks. Besides, NNE Group organized the first ‘Active Threat & Crisis Management Symposium, where 150 security casino directors from all over the country listened to experts’ advices during several panel discussions. The balance indicates that, in the last year, several initiatives were carried out to advance in terms of prevention, control, monitoring and learning on the best ways to maintain safe rooms and happy visitors. A lot of work has yet to be done, but there has been taken an important first step to improve the safety of casinos, hotels and resorts in Las Vegas.
www.revistacasinoperu.com
Time for new entertainment strategies
NON-GAMING: ENJOYING A SPECIAL EXPERIENCE
Throughout its history, Las Vegas city has transformed itself from the epicenter of gaming to the epicenter of entertainment. Now, it seems that visitors are thinking first on enjoying and resting, and may be then on gambling. Operators are quickly readapting to respond to this new leisure concept.
T
o get a full picture of the gaming industry in the United States, it is important to consider each segment of the market. At the same time, it is essential to be aware that it is a changing industry, which evolves and forces its actors to improve their operating processes and to know about the latest trends. Operators, manufacturers, the different territories, the state and federal authorities, the players, the online and mobile technology integrate this dynamic in which we must go deeper to understand where the sector is going.
The reality of this market indicates that non-gaming revenue has been an emphasized focus for the industry for more than a decade. While hotel rooms, dining and beverages, spas and a swimming pool make up a large portion of casino’s non-gaming revenue, a growing slice of their business is hosting special events and conventions. The business model shift to non-gaming revenue started in Las Vegas roughly a decade ago. According to the UNLV Center for Gaming Research, between 1999 and 2017, Las Vegas Strip casinos’ non-gaming reve-
nue has risen from 52 percent to roughly 66 percent. More and more casinos are expanding to full resorts and thus recognizing the value of non-gaming clients and marketing to them as well. Of course, in order to attract guests (specially, the younger generation of players), not every operation needs to be profitable. Sometimes, there are going to be items that create a destination and are important to contribute to the overall casino progress. Since 2004, casinos have had more employees working in restaurants than in gaming. Last year, 26 OCTOBER 2018
17
US / REPORT
percent of casino employees worked in dining; 23 percent directly in gaming; 22 percent on the hotel side; 14 percent in the general and administrative category and 8percent in “Other” and beverage.
NUMBERS OF A POWERFUL MARKET Today more than ever, in the United States, the gap between revenues derived from gaming and those revenues from non-gaming (hotels accommodation, beverages and food, attractions such as musical shows, and so on) seems to grow at every step. For ten consecutive years, in Nevada, gaming has represented less than half of the total revenue of the casino industry. On The Strip, this is more pronounced, with casino revenues accounting for less than half of the total figures since 1998. In fiscal year 2014, for example, gambling represented only 36.7% (USD5,99 billion) of general revenues of USD16,4 billion obtained in Las Vegas Strip. While income per room was USD4,25 billion; food was USD2,51 billion; beverage USD1,2 billion and other income (entertainment, nightclubs, retail), USD2,35 billion. According to the Nevada Gaming Control Board, Strip casinos in fiscal year 2017 collected USD6.038 billion in gaming revenues, which was 34 percent of the USD17.7 billion in total revenues for those 12 months. Overall revenue (gaming, rooms, dining, beverage, shopping, entertainment and other activities) throughout the whole Nevada state reached almost USD41.2 billion during the year, an increase of 3.7 percent in 2017 compared to fiscal 2016. Gaming revenue was USD11.1 billion, a 3.3 percent increase or a USD349.2 million difference compared to 2016. That gaming revenue accounted for 42.4 percent of the total amount. On the other hand, rooms, food and beverage accounted for 57.6 percent of revenue. Regarding the US lodging industry, it is expecting a record amount of total capital expenditures (costs incurred with the purchase and installation of capital assets to maintain and enhance hotels) in 2018, USD7.05 billion versus USD6.85 billion in 2017. 18
OCTOBER 2018
Las Vegas Sands has made the patrons’ luxury dreams come true.
Besides, in 2016, a record 42.9 million people visited Las Vegas. That year, the record of 95 percent weekend occupancy rate was matched. In 2017, the city hosted a record number of convention delegates, 6.6 million.
Between 1999 and 2017, Las Vegas Strip casinos’ nongaming revenue has risen from 52 percent to roughly 66 percent.
USD17.4 billion. Native American casinos, on the other hand, employed 198,000, who earned USD9.1 billion. There also was USD89.4 billion in casino spending; USD55.7 billion was at commercial casinos and USD33.7 billion at Native American casinos. Some 82% of the total spending figure was on gambling, and the rest on items such as food, beverages, lodging and entertainment. While the average gambling budget of a typical visitor was USD541.18 in 2017, Las Vegas visitors has been spending more on food and drink, local transportation, shows and entertainment, shopping and sightseeing over the past five years.
EXPANSION OF AMENITIES CONTRIBUTION TO US ECONOMY Other interesting indicators were explained in a recent American Gaming Association (AGA) document: “State of the States: The AGA Survey of the Commercial Casino Industry”. Figures for the year 2017 showed that the gambling industry contributed USD261.4 billion in business sales to the US economy in 2017, a 9.5% increase from 2014. The gambling industry supported 1.8 million jobs in 2017, up from 1.7 million in 2014, providing USD74 billion of labor income, including wages, salaries, tips and benefits. Of the 1.8 million workers, 727,000 were directly employed in the gambling industry, and made USD33.3 billion in income. Commercial casinos employed 361,000 people, who earned
A growing number of U.S. casinos are following the Las Vegas model of marketing amenities separate from gaming with an emphasis of building non-gaming attractions as stand-alone profit centers. Over time, these amenities have become more important to resort companies. It has to be underlined that, in 2017, nongaming revenue as a percent of total Strip revenue reached an all-time high at 66 percent of total revenue. The most common non-gaming amenities are lodging, dining, retail outlets, entertainment, nightlife, meetings and conference space, and spas. Resorts also cash in on special events and large-formatted entertainment, such as concerts and sports, which often require a large arena or stadium. Another non-gaming source of income is parking. Several Strip properties are now
charging for that service. Besides, some resorts include eSports arenas, skillbased gaming or social bowling venues. Integrated resorts are increasingly looking to draw customers from younger demographics. Besides the youngsters, more gaming properties are introducing onestop, family-oriented entertainment destinations: swimming pools, movie theaters, amusement parks. These proposals seek to expand the concept of entertainment and strengthen the customer base.
OPERATORS’ MAIN PROJECTS Although Las Vegas has 1,701 gaming sites, 122 casinos and more than 175,000 slot machines, new trends are imposing the ways of consuming entertainment. More and more millennials are going to Las Vegas for its nightclubs and restaurants. They wager on sports and lay the occasional bet at the tables, but are uninterested on traditional slots. In fact, slot revenue in Nevada has fallen 17% since 2007, compared with table games’ 3% decline. In Las Vegas, the total number of slot machines is off 23 percent from its 2001 peak. What is the new strategy? Develop resorts and entertainment spaces with all types of amenities. There are lots of examples to be mentioned. Firstly, Las Vegas city is on its way to some gigantic projects. One is the huge expansion of its Convention Center and Visitors Authority. This building will have 1.4 million-squarefoot, including a 600,000-square-foot exhibition hall. At a cost of USD935.1
NFL Raiders will have a new home at Vegas.
million, it will open in 2021. The other is the USD1.8 billion Las Vegas Stadium, a domed stadium under construction in Paradise, Nevada, for the Las Vegas Raiders of the National Football League (NFL) and the UNLV Rebels football team of the University of Nevada, Las Vegas (UNLV). It is expected to be completed in time for the 2020 NFL season.
Las Vegas visitors has been spending more on food and drink, local transportation, shows and entertainment, shopping and sightseeing over the past five years. The financing for the project will come in the form of USD750 million in public funding and UDS1.1 billion from the Raiders. The structure will be a 10 level domed stadium with a clear ETFE roof, silver and black exterior and large retractable curtain-like side windows facing the Las Vegas Strip. As for the operators, it can be highlighted what is already built: the eSports Arena Las Vegas in the Luxor Hotel and Casino, from a partnership between MGM Resorts and Allied Esports. It’s the first dedicated eSports venue on the Strip and was inaugurated in March 2018. This 30,000-square-foot arena represents one of the many new faces of
non-gaming for integrated resorts, and hosts popular worldwide eSports tournament events. Caesars Entertainment has its own projects. Caesars Forum is a USD375 million, 550,000 square-foot conference center in Las Vegas. This multi-functional space will be the first facility of this size built on one level and will feature the two largest ballrooms in the world. It will also have the Forum Plaza, the first 100,000 square foot outdoor meeting and event space in Sin City. The company is also planning to expand its non-gaming concept abroad. It will bring a non-gaming Caesars Palace resort to the coast of Puerto Los Cabos, Mexico, and to Dubai, United Arab Emirates. As to Las Vegas Sands, the operator recently presented the complete renovation of The Palazzo, the refined luxury hotel that is part of The Venetian Las Vegas. Now, The Palazzo will provide a fresh approach to Las Vegas luxury with digital art installations within the transformed casino floor; Electra Cocktail Club, the future of nightlife and a new imaginative cocktail experience; and unprecedented levels of access and personalized service through Prestige at The Palazzo, the hotel’s elevated luxury experience. There’s also a fascinating culinary offering, Mott 32, set to debut in December 2018. Besides, Las Vegas Sands has one big plan in the agenda: the MSG Sphere (with the Madison Square Garden Co.), a 360-foot-tall, 500-foot-wide, 18,000-seat spherical arena on the Las Vegas Strip. Sands will invest USD75 million on this project, to be ready in 2020. It will have a 250-million-pixel interior screen with a 19,000 x13,500 resolution, making it the largest, highest-definition screen on Earth. With respect to Wynn Resorts, the operator communicated a large non-gaming amenity: the Paradise Park. The project will replace the 130-acre golf course to the east of the company’s existing hotel towers with a lagoon that is expected to be roughly three times the size of Bellagio’s lake. The plans include a boardwalk and beach as well as a hotel tower with up to 3,000 rooms. All of these projects will certainly drive more non-gaming visitors to Las Vegas for years to come. OCTOBER 2018
19
INTERVIEW
With 80 representatives from 19 countries
RELEVANT LATAM REGULATORS’ MEETING In August, in Lima, Peru, GLI organized a successful 11th Annual Latin American and Caribbean Regulators Roundtable to analyze gaming legislation in the region.
G
aming Laboratories International (GLI) welcomed representatives from 33 government entities and 19 countries from Latin America, the Caribbean and Spain to its traditional Roundtable event, which had the collaboration of the Directorate of Games of Chance and Casino Games (DGJCMT), Peru´s gaming regulator. This year’s record-setting reunion featured executives from Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Curacao, the Dominican Republic, Guatemala, Jamaica, Panama, Paraguay, Peru, Puerto Rico, Saint Kitts and Nevis, Spain, Turks and Caicos, Uruguay, and the US Virgin Islands. CIBELAE (Corporation of Iberoamerican State Lotteries) was also in attendance. Presented by GLI University, the conference featured 28 speakers representing some of the most respected names in the Latin American, Caribbean, and Spanish gaming and lottery industries. These experts were joined by GLI’s President and CEO, James Maida, and GLI’s global team of experts from Latin America, the Caribbean, Europe, Australasia and North America.
OPINIONS OF THE INDUSTRY During the meeting, Karen SierraHughes, GLI’s Director of Latin American and Caribbean Government Relations and Business Development, addressed the regulators. “We are overjoyed with the results of this year’s Roundtable. We were very pleased to have such a diverse range of government sectors represented, which included gaming and lottery regulatory entities and government lotter20
OCTOBER 2018
Attendees at GLI’s LatAm Roundtable.
ies, and also the financial and AML supervision bodies that participated with a strong local representation.
The conference featured 28 speakers representing some of the most respected names in the Latin American, Caribbean, and Spanish gaming and lottery industries. The Roundtable traditionally shines for its learning, collaboration and networking qualities, and especially in this occasion, it became a window into the current status of the gaming and lottery industries of the countries represented in the conference. It has contributed in building to the efforts we are all doing toward the legitimization of our industry,” she declared.
While Manuel San Román Benavente, Peru’s General Director of the General Direction of Casino Games and Slot Machines, said: “I would like to extend my greatest recognition and gratitude to GLI for the 11th Regulators Roundtable that took place in the city of Lima. We are proud that Lima was chosen as the host city. It will always be a pleasure to share with the regulators in attendance a space for exchange of experiences and opinions on the games of chance. Only the ones that are part of this industry know our commitment and permanent mission to show to our society the strengths of a regulated industry in the constant fight against problem gambling and money laundering activities. These Roundtables have contributed to the fellowship among regulators where, in genuine team spirit, we share our experiences.” GLI is already planning for next year’s Roundtable with the collaboration of the Latin American, Caribbean, and Spanish government entities.
www.revistacasinoperu.com
GLI
ANTICIPATING CHANGES IN THE SECTOR
The company spent a year developing the GLI-33 standard, which deals with online betting on events. It’s already been adopted by many jurisdictions in the United States and other countries.
B
ased on her experience and knowledge, Karen Sierra-Hughes, Director, Latin American and Caribbean Government Relations and Business Development, GLI, discusses several interesting topics to suppliers, operators and regulators.
Up to now, what is the balance of this year on GLI’s work in the different markets in which participates? It has been a very active year, with our presence at conferences and exhibitions. iGaming was the topic everyone talked about. As a laboratory, we closed important agreements with entities such as the Lottery of the City of Buenos Aires (Argentina). It is a similar agreement to the one we have with other jurisdictions such as Puerto Rico, where we also provide regulatory development consultancy, like we do in Panama for example. In addition, we have verified the evolution of the industry, which aims to greater interaction with operators, from our role as providers of standards and control and testing processes. Online gaming has expanded our job, providing consulting services and information security management. They are interesting experiences that we are proud of, because we receive constant positive feedback from operators.
What are the new challenges for GLI in the United States since the reverse of PASPA law and the growth of legal sports betting in the different states of the country? We work hand in hand with regulators to guarantee the integrity of gaming. We have spread info about our GLI-33 standard that takes into account the events
betting systems. The standard was developed to be used as a reference by regulators. GLI is really supporting them. In fact, there are already several jurisdictions that have adopted the GLI-33 standard. We also collaborate with regulators in the development of sports betting and online gaming laws, which is the case of the Gaming Division of the Puerto Rico Tourism Company. We contribute in matters of certification, testing, auditing with worldwide suppliers and operators. We have clients in Latin America who are asking us how they could enter into the US betting market. There is a lot of interest in this topic. With online gaming, it is even more evident that this is a global industry, and this is why GLI has locations around the world.
It’s clear that the company has been able to anticipate changes in the sector to be prepared with essential tools that respond to customers’ needs. Exact. For more than a year, we have been developing the GLI-33 standard. We gave suppliers, operators and other members of the industry the chance to comment on the characteristics of the draft of our standard in order to enhance it and to better serve to their needs. Our norm is not improvised nor an urgent product in response to the news of the industry. For the creation of technical standards, we have a process that includes the use of our extensive experience as a laboratory, the analysis of the most recognized and strict regulations in the world, and the proposal to accept comments from stakeholders on the draft. In short, everyone feels part of the development of the standard.
Karen Sierra-Hughes, Director, Latin American and Caribbean Government Relations and Business Development, GLI.
What scenario do you foresee for the industry in 2019 and how will GLI face it? The industry poses the challenge of constant innovation. This is exciting, but at the same time, it forces us to constantly update and understand the dynamics of the sector in each market. There are new technologies, gaming modalities and payment methods. As always, we will be at the forefront of the industry to answer any questions our clients have about these issues. Also, I would like regulators to come closer to the industry, to the sector in general. Little by little, their participation has been growing, but I hope that more will be involved in the dilemmas faced by suppliers, manufacturers and operators. OCTOBER 2018
21
G2E 2018 PREVIEW
Presented by AGA and organized by Reed Exhibitions
SHOWING THE FUTURE OF GAMING G2E’s dynamic schedule will include the latest technologies, newest products and insightful thought leadership centered on the most relevant topics the sector is facing today.
T
he gaming industry is in a permanent transformation. In that sense, the Global Gaming Expo show in Las Vegas, United States, has been able to capture these trends and analyze the comments and suggestions of the attendees to introduce improvements, both in the exhibition hall itself where the event will be held and in its structure,
22
OCTOBER 2018
content and characteristics. The trade show will take place from October 9th to 11th (the educational seminars will begin on October 8th) at the Sands Expo and Convention Center, from 10 am to 5 pm, except Thursday, October 11th, closing at 3 pm. Looking at its main numbers, it is an amazing learning and networking experience: the exhibition space includes
about 300,000 square feet (28,000 square meters) and 450 exhibitors (60+ new). There will be 13 education tracks, including 85+ sessions. G2E is expected to attract around 26,000 gaming professionals from 111 countries. This data explains the power of the industry that, in the United States, contributes USD261 billion to the country’s economy.
www.revistacasinoperu.com
PRODUCTS, MEETINGS AND EDUCATIONAL PROGRAMS With the organization of Reed Exhibitions and the support of the American Gaming Association (AGA), this 18th edition will focus on sports betting, following the Supreme Court’s decision to overturn PASPA. As a consequence, this year, the G2E expo hall has more than doubled the number of sports betting exhibitors since the 2017 event. A full array of gaming products and services will be on display, with categories including: Slot/Gaming Machines & Components, Bingo, Lotteries, Table Games, Casino Marketing, Consulting & Business Services, Security & Surveillance, Entertainment Concepts & Services, Hotel Operations, iGaming, The latest iGaming technology will be an appealing element for visitors. Sports Betting and eSports, among others. For the hospitality segment, there will tract thousands of executives interested gaming operations guest service & exin the most relevant perience, security, surveillance & complibe an Integrated issues and current ance, non-gaming growth opportunities, Resort space, to The educational trends of the sector. anti-money laundering, situation of tribal help casino opSome of them will gaming, and so much more. erators stay rel- trainings, keynotes and The event will also include meetings be discussed within evant and ahead the framework of the of organizations of the sector. The Naof trends as cus- conferences will attract IAGA Best Practices tional Center for Responsible Gaming tomers seek the thousands of executives Institute or during (NCRG) will have its 19th Conference ultimate experithe iGaming Con- on Gambling and Addiction on October ence beyond the interested in the most gress. The topics of 7th and 8th at the Sands Expo, to learn casino floor. Visi- relevant issues and the conferences will about the latest research on gambling tors can source be the following: in- disorders and new responsible gambling new products, current trends. dustry regulations, strategies while exchanging ideas with technologies and services that drive revenue and value sports betting challenges, blockchain attendees from all over the world. While technology, gaming leadership & career also on Monday, October 8th, Lisa Borfrom non-gaming sources. Once again, the educational train- development, marketing & analytics cus- ders, WNBA president, will deliver the ings, keynotes and conferences will at- tomer acquisition & retention, optimizing keynote address to kick off Global Gaming Women’s Educational Track. “With the business of sports and gaming intersecting like never before, there couldn’t be a better time to hear from a leader like Lisa Borders. The American Gaming Association is grateful for the Global Gaming Women’s continued leadership and advocacy on behalf of the women in the gaming industry, and we’re looking forward to this great event”, declared Sara Slane, SVP of Public Affairs at AGA.
DISCOVERING GAMING LATEST TRENDS
G2E show in Las Vegas expects to gather over 26,000 gaming professionals from 111 countries.
One of the most appealing programs of the show will be the Innovation Lab (booth #5833), featuring new developments and technologies shaping the fuOCTOBER 2018
23
G2E 2018 PREVIEW
ture of the gaming industry. It will have two sections: ‘Big Data & Analytics’ on October 9th and ‘New Terrain and Emerging Markets’ on October 10th. Then, on October 11th, will be time for the Innovation Incubator. Start-ups and students will take the main stage at G2E to pitch their greatest innovations in gaming and hospitality to a live audience and two of the most dynamic investors in the business world, Daymond John (FUBU) and Cindy Eckert (The Pink Ceiling and Sprout). Furthermore, this year, Global Gaming Expo will launch the first-ever Sports Betting Symposium, with specialist discussing topics that cover the latest in US sports betting. The main issues of the agenda will be ‘SCOTUS Decision: What the Ruling Actually Said and What it Meant?’; How States and Tribes Are Preparing for Legal Sports Betting?’ (both on October 9th); ‘Overview: The Business of Sports Betting’ and ‘Finding the Right Partner: An Interactive Exhibit Hall Tour’ (October 10th); ‘How Sports Betting Works in a Regulated Market?’, ‘US Sports Betting: Lessons Learned from Early Adopters’, on October 11th. The latter debate will have important speakers, such as Joe Asher (CEO of William Hill US); Richard Carter (CEO of SBTech); and Charles Cohen. (VP Mobile, PlaySpot, and North America Sports Betting, IGT).
AWARDS AND CELEBRATIONS As usual, G2E will be a space of cordial networking and of recognition to the best gaming companies and executives. The 5th edition of the Global
The educational trainings, keynotes and conferences will attract thousands of executives.
Gaming Awards will be held on October 8th, 11:30 am, during a luncheon at the Venetian Ballroom, Bellini 2101 Suite (Sands Expo Center). After that, the sixth annual Casino Entertainment Awards will take place on Wednesday, October 10th from 6 to 8:30 pm. in the Vinyl at Hard Rock Hotel & Casino Las Vegas. Platinum recording artists The Righteous Brothers -the first rock and roll act to perform on the Las Vegas Strip- will receive the Casino Entertainment Legend Award, as well as casino nightlife icon Victor Drai, owner and operator of Drai’s Enterprises. Also on October 8th, from 5 to 6:30 pm, the organizers will offer visitors the G2E Welcome Reception, sponsored by Novomatic, at The Venetian Ballroom F. Different key companies of the sector, such as Scientific Games,
Main companies of the industry will show their best and newest solutions in huge booths.
24
OCTOBER 2018
will launch their own parties. On October 10th, from 7 to 11 pm, Scientific will have the Customer Appreciation Party, in Brooklyn Bowl Las Vegas.
THE VOICE OF ORGANIZERS The changes implemented, the largest number of speakers and the support that the event has in the global gaming industry are generating good expectations among the representatives of the organizers. “The gaming industry was built by entrepreneurs with innovation in their DNA. At G2E, we embrace and spotlight gaming innovation on the show floor, delivering a powerful platform to drive the industry forward,” said Allie Barth, VP of Industry Relations at AGA. While Sara Slane, SVP of Public Affairs at AGA, added: “As states and sovereign tribal nations consider whether or not to enact legalized sports betting, the Sports Betting Symposium at G2E will offer the world’s foremost experts, business leaders and operational solutions to build a thriving legal market in the United States.” While Korbi Carrison, Reed Exhibitions/ G2E Event Director, commented: “We’ve put a major focus on the evolution of G2E to ensure it is staying ahead of the curve as the gaming industry changes. The expo hall will feature highly anticipated offerings from across the core gaming sector, along with exhibitors presenting their products in sports betting technology, iGaming, integrated resort products and other non-gaming amenities.”
US / REPORT
www.revistacasinoperu.com
Las Vegas is a tough town for female workers
WOMEN’S VOICES NEED TO BE HEARD
The momentum created by the #MeToo movement also reached the gaming industry. Women are claiming for their rights to be respected, to have equal treatment, the same wages of men and a space to spread their ideas and show their work, in order to stimulate the progress of the sector.
T
he momentum created by the #MeToo movement also reached the gaming industry. Women are claiming for their rights to be respected, to have equal treatment, the same wages of men and a space to spread their ideas and show their work, in order to stimulate the progress of the sector. (bajada) The entertainment industry has been covered by the dark cloak of sexual harassment. Casinos joined the film and television sectors when, in January
2018, Steve Wynn, one of the most recognized and respected figures in the gaming world, founder of the famous Wynn Resorts chain, received accusations of sexual misconduct from several women. This unleashed a strong reaction of the #MeToo movement and the rejection of the entire industry. Of course, Wynn had to resign and sold his 12.1% stake in the company he started. Thereafter, a debate began on how to protect women and what role executive
gaming women play in the sector compared to their male counterparts.
NO MORE SILENCE After the Steve Wynn’s episode, Wynn Resorts has made a raft of changes to its board of directors, adding three more women (Dee Dee Myers, Betsy Atkins and Wendy Webb). The most any gaming company had as recently as early 2017 was one. Besides, in July 2018, Ellen Whittemore was named new general counsel OCTOBER 2018
25
US / REPORT
and executive vice president. Regarding Wynn’s case, the accusers of sexual harassment include a manicurist, a massage therapist and several cocktail waitresses. The fact that these women were heard and believed marks a significant shift for the #MeToo movement. Steve Wynn has denied all the accusations against him. Wynn’s resignation is a demonstration of how financially and politically powerful individuals can fall even when their accusers are virtually unknown and small. The casino industry in Nevada employs more than 179,000 people, many of them in low-wage jobs in housekeeping, food service, dealers and bartending. The state leads the nation in sexual harassment complaints per capita (Equal Employment different from other industries. Casinos are settings where females are Opportunity often treated sexually. Girls Commission The state of are usually dressed in skimpy and the Buoutfits. It can’t be denied that reau of Labor Nevada leads the they are subjected to some S t a t i s t i c s ) . nation in sexual form of sexual objectification. The rate was about 25.6 harassment complaints At least 5,000 sexual harassment complaints were filed c o m p l a i n t s per capita, with a rate with the Equal Employment per 100,000 Opportunity Commission female work- about 25.6 complaints from 2005 to 2015 (more ers. Those per 100,000 female than any other industry renumbers repport), according to the Cenresent a small workers. ter for American Progress. percentage of the overall incidents, according to labor lawyers and workplace safety advocates, TIME FOR A CHANGE because so many don’t get reported out Before this year’s edition, G2E Las of fear of retribution. It’s important to ac- Vegas show organizers have announced knowledge that the casino environment is a zero tolerance policy for harassment of
Casinos are providing panic buttons to their employees.
26
OCTOBER 2018
The #MeToo movement help women to raise their voces and demand for respect and protection.
any kind. “Our policy applies to everyone at the convention: exhibitors, attendees, speakers, guests, professionals, press, staff, volunteers and security”, stated representatives from Reed Exhibitions. At the same time, through a recent communication (Notice #2018-61), the Nevada Gaming Control Board (NGCB) proposed a minimum standards checklist and suggested to all licensees of the sector in the US territory to adopt urgent policies addressing the prevention of sexual harassment in the licensee’s workplace. On last January, Becky Harris became the first female chair of the NGCB. In September, the Nevada Gaming Commission (NGC) made several amendments to its Regulation 5, on requirements relating to the implementation of the sexual harassment policy by the licensee. In addition, it held a workshop (2018-03R) to receive comments from the public on the proposed amendments. Nevada gaming licensees are also facing pressure from the unions that represent large numbers of their workers. Union workers from 34 casino resorts on the Las Vegas Strip and Downtown Las Vegas requested that the new regulations should include protections and policies regarding sexual harassment by casino patrons as well as gaming employees. In response to these requests, Caesars Entertainment and MGM Resorts International reached contract agreements with unions to provide panic buttons to their housekeepers, bartenders and cocktail servers. In the hospitality sector, more than a dozen big hotel chains (including
www.revistacasinoperu.com
Marriott, Hilton, Hyatt, IHG and Wyndham) said that they will provide personal safety devices by 2020 to all employees who deal one-on-one with guests. The companies will also train staff to identify and report harassment and publish anti-sexual harassment policies in multiple languages. The American Hotel and Lodging Association, which is backing the effort, says around three-fourths of its 25,000 member hotels are participating right now in this initiative.
GENDER INEQUALITY ISSUES When it comes to women facing workplace abuse, another dynamic does just as much harm: the culture of income inequality. In the gaming sector, there are vast economic disparities that make low-paid women especially vulnerable to misconduct by their wealthy bosses. According to the American Association of University Women, in their report ‘The Simple Truth about the Gender Pay Gap, Spring 2017 Edition’, women’s wages will not equalize to that of men until 2059, based on the current rate of change. The pay gap negatively impacts women’s sense of well-being and their family’s quality of life. In October 2017, Dr. Marlene Adrian and Denise Duarte, from the nonprofit group Women of Diversity Productions, wrote the study ‘Gaming Gender Equality Index’, that showed there were a lot to be done to reach gender equality. They surveyed and researched 21 gaming corporations with US headquarters, most doing business in Las Vegas. The results of that work re-
vealed not one of the 21 corporations had a female CEO, chairwoman or president. At only three corporations, women hold one-third or more executive board’s seats. Corporations are not offering policies that directly affect women employees. There is no evidence of real commitment to gender equality in more than one third of the gaming companies.
There is no evidence of real commitment to gender equality in more than one third of the gaming companies. Everyone is talking about diversity and inclusion, yet with women comprising 50% of the population, more emphasis needs to be made to equalize the pay gap. In a general outlook, corporations should do more to promote gender equality, to start looking at this issue as a priority. A positive example of good gender policies is Caesars Entertainment. The company has a program with measurable goals. It’s called “50-50 by 2025,” meaning that Caesars wants half of its executives to be women seven years from now. There was also Caesars’s “Gender Equity Initiative”, launched in 2017. Caesars Entertainment committed to work to close the gap and achieve 100% parity in pay for men and women.
The number of women working in the gaming industry is still unequal in relation to men.
DIVERSITY CAN ENRICH THE INDUSTRY It’s clear that, after the positive influence of the #MeToo movement, the place of women in the gaming industry is evolving. There are many more Csuite-level women in roles that traditionally went to men: finance, operations, food-and-beverage and more. Regarding the sexual harassment issue, women are feeling more comfortable and have become empowered to come forward and speak out about their experiences. Companies understand their obligations and policies. Those imply a reliable anti-harassment strategy that takes into account anonymity, accessibility, and transparent auditable reporting. In this regard, Sarah Harrison, former CEO, UK Gambling Commission, shared her opinion on this subject. “In the UK, this sector is very white and very male. The lack of women working in the gaming industry, in senior roles or otherwise, is staggering. Of the Boards of Directors and Executive Teams of our largest operators, only 17% are women. There is work to be done, to understand the inequality gaps and to take the necessary steps to address existing disadvantages affecting how people participate in the work force. Diversity in terms of age, gender, disability, sexuality and socioeconomic background is the principal issue I am committed to and interested in. Diversity can support innovation being open to different ways of approaching problems and their solutions”, she spoke to an American audience of executives of the Global Gaming Women organization. The culture of sexual objectification is still prominent in the Las Vegas gambling industry. It will take some time before significant changes happen. There’s a need for equality in payment and for recognition. A commitment must be made by all the members of the industry to work to 50/50 gender parity on pay by 2020. As more women frequent casinos and more women climb up the corporate ladder in the gambling industry, the positive changes are expected to continue. Women finally have a strong voice that will be increasingly heard by the entire gaming industry. OCTOBER 2018
27
INTERVIEW
American Gaming Association
A LANDMARK YEAR FOR INNOVATION
Throughout the year, the organization has generated many proposals in order to unite all the members of the industry in pursuit of the general benefit.
I
t’s an exciting moment in the United States for the advancement of sports betting regulation in different jurisdictions. Likewise, challenges have been posed to the security of the casinos, as well as to a need to strengthen the role of women in the industry. According to the Allie Barth, Vice President of Industry Relations, AGA, G2E show in Las Vegas will express these and other fundamental issues for the current gaming scenario in the country.
Last May, the US Supreme Court decision that states can legalize sports betting was a huge and historical victory for AGA. That was the first step. What work has the association been doing since then to contribute to expand the legalization of the activity in more territories of the country? As states and sovereign tribal nations consider whether to establish legal, regulated sports betting markets within their jurisdictions, the American Gaming Association continues to promote sound policies that best enable consumer protection and stamp out the vast illegal market.
Why AGA decided to take up the cause of responsible gaming so strongly? Do you think that, at the time, many companies in the sector did not give this issue the importance it deserves? Responsible gaming has always been one of the highest priorities of American Gaming Association and our members. Each year, the industry commits more than USD300 million to support responsible gaming education, training and 28
OCTOBER 2018
Allie Barth, Vice President of Industry Relations, AGA.
treatment programs across the country. As the industry continues to evolve, operators and suppliers remain devoted to promoting a safe gaming environment for patrons and industry employees. This year, AGA updated its Code of Conduct for responsible gaming to include wagers on sports, and launched the Responsible Gaming Collaborative, bringing industry leaders, academics and advocacy organizations a space to work together to combat problem gambling head on.
Do you believe that the sector has shown (especially in Las Vegas) some progress over the last year on key issues such as casinos security and a deeper concern and protection of women in the industry? The safety and wellbeing of every patron, employee and guest is of the utmost importance to the casino industry. The gaming sector commits significant
resources to robust, security measures on-site to ensure a safe and secure environment for every single member of the gaming industry.
In which way this will be an outstanding G2E Las Vegas edition? What activities of the event should be paid special attention to? This year’s G2E will be a landmark year for innovation. G2E 2018 will hold its inaugural Innovation Incubator, where startups and students will pitch their greatest ideas in gaming and hospitality to a live audience, that includes FUBU founder and CEO Daymond John and self-made business mogul Cindy Whitehead for a chance to win UDS10,000 and a booth at next year’s G2E. Besides, the show will also host its first-ever Sports Betting Symposium, mapping out the current sports betting landscape and the future of the industry with top sports betting experts and ESPN anchor Scott Van Pelt.
www.revistacasinoperu.com
OCTOBER 2018
29
US / REPORT
Nevada is a leading sustainable energy producer
GOING GREEN AND CLEAN
Using renewable energy resources such as solar power not only can be ecological, but also profitable. Lots of resorts in Las Vegas have been implementing these technologies to save costs and to prove guests their companies take care of the city’s environment.
S
un shines bright at nights in Las Vegas. This could be an oxymoron, but it’s a reality, since the extensive array of solar power the buildings receive during daylight (average 294 days of sunny weather per year) charges some part of electric systems of the city than are functioning at night. Nevada has been fighting (and winning) a battle for energy efficiency and sustainability. An intensive program cut per capita water usage 37 percent in the last decade. Besides, renewable energy production has nearly doubled in Nevada since 2009 and now stands at 21 percent of all electrical production. The state produces so much renewable power that it exports 35 percent of it to other western states. Nonetheless, just a decade ago, none of the large casinos in Las Vegas were taking advantage of solar energy. Today, all major gaming
30
OCTOBER 2018
properties in southern Nevada use solar power. The state is now the nation’s number one producer of both solar and geothermal power per capita. Nevada owes much of its success to the adoption of a state tax abatement program in 2009 that has generated nearly a 1,000 percent return on the investment.
A COMMITMENT TO RENEWABLE SOURCES About this issue, Nevada Governor, Brian Sandoval, said: “The USD734 million in incentives since 2011 has attracted a return of USD7 billion in capital investments, payroll, and taxes paid. We have created more than 4,600 jobs across the state. In total, we have 31,000 jobs in renewable energy now.” Considering that, for companies, the rise in energy efficiency reduces bills, improves competitive-
ness and increases productivity, operators have been an important part of the equation. Between extensive recycling and waste-management processes, a big push to utilize LED lighting, and energy conservation, casinos are fully invested in a greener city. Some of them, like MGM, have promoted smarter street designs, such as The Park, a public green space on the Strip covered in native plants. There are close to 40 major casinos in Las Vegas accounting for around 150,000 hotel rooms. Casinos are still responsible for over 20% of Las Vegas’ energy usage. USD5 million have been devoted to upgrading low voltage systems and pushing renewable energy sources. By law, Nevada’s public utilities currently must obtain at least 20 percent of their retail power supplies from renewable sources and at least 25 percent by 2025.
www.revistacasinoperu.com
OPERATORS’ CLEAN ENERGY EFFORTS
to power the resort’s new meetings and conventions space expansion, which is set to open in March 2020, with 100 Resorts are investing in green technolpercent renewable energy. In this project, ogy to lower costs, cut water and power Wynn partnered with Enel Green Power use, reduce food waste, increase recycling North America for a 20 megawatt solar and shrink their overall carbon footprints. array near Fallon, 375 miles northwest of Up to now, Nevada is a regulated power Las Vegas. Wynn Solar Facility’s power market that is monopolized by the Berkwill be sent through existing transmission shire Hathaway Energy Company, the parlines directly to Wynn Resorts, where it ent company of NV Energy. However, after eventually will provide all of the electricity years of legal battle, MGM Resort Internaneeded for the company’s USD1.5 billion tional left NV Energy, and so did Wynn Paradise Park development. Besides, Resorts by the end of 2016, and Caesars there are some installed solar panels Entertainment in March 2017. MGM has covering 103,000 square feet of Wynn been a pioneer, inaugurating its first large Las Vegas’ rooftop. From these panels, solar array at the roof of the Mandalay Bay enough renewable energy will be generConference Center in 2014, teamed up ated to power 5,056 homes and elimiwith NRG Energy. Three years later, the nate 33,734 metric tons of CO2 emiscompany expanded this array, making it sions from the environment annually. And one of the largest rooftop systems in the in July, Wynn Las Vegas communicated country. The 26,000 panel, 8.3 megawatt that it earned Four solar array can Green Globes for its power the equivadedication to creating lent of 1,340 sinand maintaining engle-family homes vironmentally-friendly for one year, and buildings, the highest can handle up to certification given by 25 percent of Manthe nonprofit organidalay Bay’s energy zation Green Building needs when fully Initiative. active during the As to Caesars day. After breakEntertainment Coring bonds with poration, announced NV Energy, these it has committed to operators started reducing greenhouse placing their bets gas emissions from on investments in the company and renewable energy throughout its supply and purchasing The Question 3 vote in Nevada could put an end to NV Energy’s monopoly. chain. Caesars will retheir electricity on Regarding Wynn Resorts’ actions, duce absolute Scope 1 and 2 emissions the open market. Of course, efficiency was always a must. For instance, MGM Wynn Las Vegas has implemented a wet- 30 percent by 2025, and 95 percent by reduced its energy consumption by 11 waste single-stream recycling program, a 2050, using 2011 as a base-year. Caesars percent through various initiatives, such method that collects and sorts food and also committed to have 60 percent of supas replacing 1.3 million old light bulbs landscape waste, as well as recyclables pliers by spend institute science-based with LED versions, saving USD10 million such as paper, plastic, and cardboard. GHG reduction targets for their operations per year on its power bill. On April 2018, The reclaimed materials are repurposed by 2023. The carbon and management MGM announced a partnership with Chi- for various commodity streams or used strategy developed by Caesars is a part of cago-based Invenergy, North America’s as sustainable food sources for local farm the company’s CodeGreen environmental largest independent renewable energy animals. Wynn also outlined its renewable program, which was established in 2008. company, on a new solar photovoltaic ar- energy operations. In June, the company The program entails engaging employees ray, which will generate 100 megawatts officially began commercial operation of and guests to understand and reduce of clean, renewable energy. This project its 160-acre Wynn Solar Facility, which energy use, GHG emissions, waste and will be located 25 miles north of Las Ve- will allow it to offset up to 75 percent of water use. Caesars Entertainment has gas and MGM will purchase all the energy its peak power needs with renewable en- reduced its total GHG emissions by 22.9 generated capable of supplying up to 90 ergy. The facility will eventually be used percent since 2011. percent of daytime demand of its 13 properties on the Las Vegas Strip. The plan will be operational by the end of 2020. The structure will be made up of approximately 336,000 panels on 640 acres of land within the US Bureau of Land Management’s Dry Lake Solar Energy Zone. The project will produce enough electricity to power the equivalent of approximately 27,000 homes. Aside from the renewable energy being used directly by MGM Resorts’ Nevada properties, the project will also yield other significant benefits for the state of Nevada. Construction of the project will employ 350 workers. Once operational, the project will generate approximately USD20 million of sales and property tax revenues, as well as indirect economic benefits to local businesses like hotels and restaurants, while also reducing carbon emissions.
OCTOBER 2018
31
US / TOURISM
An exclusive guide to secret places in town
LAS VEGAS TO DISCOVER Beyond the noise, colors and excitement that hotels and casinos offer to tourists, the ‘Sin City’ of Nevada has many interesting attractions to visit and enjoy. Here’s a list of some hidden spots in town that you must take a look at.
I
t is often said that exploring a city like Las Vegas is an unforgettable experience. Undoubtedly, more than 40 million tourists per year can’t be wrong. While lots of them focus exclusively on their passion for gaming and all the amenities offered by hotels and resorts, many others want to take full advantage of the visit to become travelers and adventurers, and not just players. In that sense, the city and its surroundings enclose a wonderful world of fascinating (and not so well known) places to visit. Here are some of those sites that deserve to be 32
OCTOBER 2018
discovered by those looking for a complete Las Vegas experience.
WILD NATURE Just less than 20 miles west of the center of the Las Vegas Strip, there is amazing Red Rock Canyon National Conservation Area (opens daily 6am-6pm). The red rocks climb to the sky all around you and the layers of rock break up the landscape in patterns that ebb and flow through the sight lines of your soul. The rocks, formed by a number of geological forces, including fractured faults and
fossilized sand dunes, are a popular destination for hiking, climbing and biking. The highest point in the area is more than 8,000 feet. The rocks get their color from iron oxide that has built up over centuries. This place will tempt you with strenuous trails and relax you with quiet spaces filled with the sounds of nature. In the summer months, it is best to get there early to avoid the heat, but outside of May through September, this park is a delightful respite from the craziness of the Strip. If you want to turn your view from red to green and take a deep breath, you
www.revistacasinoperu.com
should go to the Conservatory & Botanical Gardens (The Bellagio hotel). They are not only free but seasonal, so that means you can come back over and over. This is a Strip highlight, a 14,000-square-foot canvas with stunning flowers and ornate sculptures. Also in the Strip, the Mirage hotel has its tree-filled central dome and Siegfried & Roy’s Secret Garden, and The Wynn hotel has the Lake of Dreams, set around a 12-metre waterfall cascading from a pine-topped hill, enlivened at night by light shows. Outside the Strip, on the west, there is Las Vegas Springs Preserve, with more than 100 peaceful acres of native plants and trees, and three and a half miles of walking trails. Less than an hour away, you should also check Mt. Charleston, which is covered in snow during the winter season. At the top of Kyle Canyon, visitors can enjoy Mt. Charleston’s Lodge, which features spectacular mountain peak views, skiing, dining and rustic cabins high above the Vegas valley.
ART AND MUSEUMS The early history of Las Vegas is inextricably linked with organized crime. The mobster Bugsy Siegel had the vision to create a gambling town in the middle of the desert. Opened in the Downtown area in 2012, there is The Mob Museum (opens daily 9am-9pm), a massive exhibition space across several floors, full of arcane memorabilia and fascinating facts, as well as the bloodstained wall of the St Valentine’s Day Massacre rebuilt here brick by brick, and an electric chair to sit in, just if you dare. If you are a huge fan of bright flashing lights, dinging bells and furious button-pushing, then you are obliged to go to The Pinball Hall of Fame. It’s currently relocating from the north side of Tropicana to a bigger place in 4915 S. Las Vegas Blvd., near the Harley-Davidson dealership on the south end of the Strip (opens daily 11am-11pm). This is a 10,000 square foot space with close to 200 games: pinballs, sports-themed games and more, costing from 10 to 50 cents per play. For art lovers, Las Vegas has plenty of interesting venues. The City Center Fine Art Collection, located throughout CityCenter, is a 67-acre gallery with a broad combination of style and
Red Rock Canyon represents one of the main natural beauties of Nevada.
mediums, ranging from sculpture and painting to large-scale installations, both indoor and out. There is also the Bellagio Gallery Fine Art, where you can gain new knowledge of different techniques, and the Peter Lik Fine Art Gallery. For a more ‘bohemian’ experience, you should visit the 18b Arts District, an 18-block zone created in 1998 to encourage artistic activity, halfway between Fremont Street and the Stratosphere. It’s full of quirky independent boutiques selling antiques, vintage clothing and art, as well as cafes and restaurants. If you like strange and absorbing emotions, you will find Akhob, an attraction like none other in Vegas. Located on the top floor of the Louis Vuitton City Center store, is a mysterious art installation by James Turrell, created in 2013 (opens Thursday through Monday, 11:30am-7:30pm). The exhibit is called “Akhob”, which means “pure water”. It doesn’t require you to purchase anything from Vuitton, and indeed there isn’t even an admission price. You must call and make reservations (702 730-3150) two month in advance! as only 4 people are admitted at a time. This place consists of circular openings leading into two huge chambers filled with slowly changing, rotating light. The effect generated is one of giving your eyes a gentle, soothing bath in the most brilliant colors imaginable. Vibrant hues shift imperceptibly from one to another, bleeding in and out of each
other on a cycle that lasts 24 minutes, and leave guests in awe. You will be required to sign a three-page release form and to remove your shoes when entering the installation.
BEST CITY VIEWS Exploring Las Vegas must include some spots with a great view and it is really hard to beat what is outside the windows of Level 107 Skylounge at iconic Stratosphere Tower (opens daily 4pm-4am). You can also try Skyfall Lounge at Delano Las Vegas (opens daily 5pm-12pm. Fri-Sat 5pm-1:30am). Grab a seat out on the patio and prepare to be mesmerized by an impressive Vegas view. Moreover, if you eat in the VooDoo Steakhouse restaurant on the 50th floor of the Rio hotel and casino, you’re then allowed into the upstairs nightclub for free. The night-time view from its rooftop is dazzling; you can see the whole glorious neon skyline of the Strip. Finally, this is not a hidden place of Las Vegas at all, but no tourist should avoid visiting it. The ‘Welcome to Fabulous Las Vegas Nevada’ sign is more than 50 years old, but this landmark attraction, which sits on the Las Vegas Boulevard median south of Mandalay Bay, is still a tourist favorite. Snap a photo there and be the envy of family and friends. It’s a Vegas rite of passage. OCTOBER 2018
33
OPINION
Unlimited possibilities and applications
THE EMERGENCE OF BLOCKCHAIN The author, a renowned expert with an extensive background in the industry, offers a first look on blockchain and cryptocurrencies, innovative tools that can change the future of gaming.
Harmen Brenninkmeijer
Managing Partner, Dynamic Partners International gbib@theglobalchain.com
I
have worked in the gaming industry for almost 30 years. During my career, I have usually been involved with technology in one way or another. I am not a technologist per se, but, as an executive/entrepreneur/ investor, I understand the applications of technology and how tech can be used to better serve existing, or even create new, markets. My experience ranges from the introduction, design and delivery of innovative casino signs; to the set-up and operation of land-based casinos in multiple jurisdictions; to the architecture of an online gaming platform way before the market was ready; to the set-up and operation of casino systems that managed (at that time) the highest number of connected slot machines in the world. To say “I’ve seen it all” would not be accurate, but what I can confidently say is that I have seen ‘a lot’ in my time in the industry which, I think, gives me an interesting perspective when potentially paradigmshifting technologies emerge; such as is the case with the emergence of blockchain. This editorial is about me conveying some of my experience and opinions in relation to blockchain, and particularly how I think blockchain can impact the gaming industry. 34
OCTOBER 2018
TECHNOLOGY THAT IS HERE TO STAY Gaming is a highly regulated industry and it tends to take its time to adopt technical innovations that are more rapidly embraced elsewhere. This has often resulted in a bit of a shake-up of the status quo as (usually) new (but sometimes) more flexible established but smaller companies that are willing to move fast rapidly establish market share in new segments of the industry.
underlying technology that powers established cryptocurrencies such as Bitcoin and Ether, I strongly believe that blockchain is here to stay and it will play an increasingly relevant role to the gaming industry.
THE CRYPTO ECOSYSTEM If we examine blockchain in the same context as with the beginnings of the Internet, the issues are potentially similar. Not many would argue against
Cryptocurrencies, particularly Bitcoin, gained popularity due to their nature of not being centrally controlled alongside inherent transparency via an immutable ledger of transactions. Additionally, cryptocurrencies enable unlimited cross border trade. What can the industry expect from blockchain? Is the technology behind it just hype and an over inflated bubble that is waiting to burst? Some might argue the cryptocurrency bubble has already burst earlier this year, but is that just calm before a new storm of attention? I don’t think blockchain is a bubble that is going to burst any time soon. We might have some period of normalization, but, in relation to the
the potential, but is the technology and marketplace mature enough to support mass adoption and growth? Does this view place blockchain more firmly in the ‘Awareness Phase’? By considering the main aspects of the crypto ecosystem, it can potentially reveal some interesting attributes. There are four key components that make up the crypto ecosystem. They are (1) the blockchain (the technical construct upon which, in particular, cryp-
www.revistacasinoperu.com
CHALLENGES TO OVERCOME
Cryptocurrencies are becoming increasingly attractive options.
tocurrencies, tokens and products are built); (2) the cryptocurrencies (the transactable digital currencies like Bitcoin and Ether); (3) the Tokens/Coins (providing a utility in a given product environment) and (4) the Initial Coin Offerings (ICOs) (the funding mechanism). Let’s specifically focus on Blockchain and cryptocurrencies. Blockchain is number one, because it is the key driver like the browser was for the Internet. The technology has many benefits that include the ability to create unprecedented transparency, efficiency and flexibility alongside an immutable distributed ledger. Without these, then it would not have developed as it has, and it would not have the same potential. The cryptocurrencies began as a technical and economic experiment. They had massive theoretical benefit, but no one knew (or ultimately knows) the impact they will have over time at a macro level. They have obviously grown in popularity and adoption, but their nature (no governance) is fundamentally both their core brilliance as well as possibly their fundamental flaw. Only time will tell. The tipping point will ultimately be the official acceptance or not of governments and regulators. Unusually, regulators have not been quick to denounce, but they are watching, planning and waiting to make the final decision. Likely, it will be the US
that will lead before Europe follows. Asia will take its own stance. Cryptocurrencies, particularly Bitcoin, gained popularity due to their nature of not being centrally controlled alongside inherent transparency via an immutable ledger of transactions. Additionally, cryptocurrencies (currently) enable unlimited cross border trade. The current political climate in many countries, particularly the US and many countries in Europe, has shown that trust from the public is massively eroded. This has been exacerbated as many have struggled to recover from the most recent financial crisis that peaked exactly a decade ago. It has almost become a default position to look at governments and the oversight they provide with skepticism and even suspicion. From a neutral (read, not owned or controlled by anyone in particular) standpoint, the attractiveness of cryptocurrencies and the commercial applications that utilize them is clear.
The major challenge the Crypto world is facing from the ‘outside’ world is one of negativity. Negative news related to the energy costs of mining and the subsequent impact on the environment. There is a general sense of a lack of trust in the blockchain solutions being proposed, not least because the benefits of such proposed solutions are often being oversold. There is the obvious criticism of cryptocurrencies as being untraceable and therefore popular in black market businesses. Fundamentally, today’s world of tokens is opaque. Even when we look at Bitcoin, despite the potential of it as a new type of decentralized currency, the reality is the largest miners sit on absolute fortunes and are the deciding voice in how Bitcoin’s price and subsequent value develops. Until Bitcoin is more widely distributed, its value will not be as stable as it should be. In fiat currency markets (e.g. a country’s currency), there are still only a few institutions that can influence currency values, with central governance able to adjust supply to stabilize price fluctuations in times of crisis. With Bitcoin, this flexibility is not available, yet. Bitcoin does have challenges as a blockchain enabler of other applications, as it cannot be programmed with a smart contract. Another challenge is the sheer variety of Tokens on the market and the unpredictability of which ones will ultimately survive and have an impact. What about the role of nations? Regulators will begin to establish official frameworks and rules that govern the issuance of tokens, and, in particular, will establish a standpoint on whether tokens are securities as opposed to being linked to a particular utility. As this happens, I predict we will see some countries lead in the establishment and development of blockchain technology hubs. These
Blockchain and cryptocurrencies have the potential of democratizing the delivery and consumption of new gaming solutions.
OCTOBER 2018
35
US / REPORT
hubs will enable further innovation and will ultimately legitimize blockchain and cryptocurrencies for the mass market.
BLOCKCHAIN AND GAMING When considering the challenges, what will therefore be the impact of blockchain to the gaming industry? Today, most of the blockchain developments in gaming seek to solve problems in two primary areas: 1) the challenge of moving value across borders to give users the ability to play on “crypto websites” or in overseas casinos, which is either a black (illegal) or grey (tolerated) activity; and 2) in the area of providing ‘Provably fair’ games via the various crypto gaming and lottery sites that have emerged. More applications can be found, but I feel blockchain can provide innovation to gaming that goes far further than the obvious application of the technology in the two areas mentioned above. Imagine an environment that opens up innovations broadening the types of games made, as well as how they are provided to end users. Game developers are rewarded for innovation and are financially supported by a community vested in the success of the games. In this scenario, the rights to income is distributed between the intellectual property creator and the community that are playing the games.
A LIFE DEDICATED TO THE GAMING INDUSTRY Harmen Brenninkmeijer has a long-standing track record in regulated gaming sectors across emerging markets with a reputation for innovation, for introducing new products and adopting new technologies. He has worked in over 65 countries actively supplying gaming equipment, advising and developing the gaming industry. In 2017, Brenninkmeijer formed the Global Chain as a vehicle to establish equity projects. Whilst working with carefully selected partners, the Global Chain has established and is introducing a number of focused offerings which include: Dynamic Partners, an Asia-based consultancy providing core services to Global Chain’s equity projects and selected 3rd parties including to various blockchainbased ventures; D-tech, a Hong Kong-based game studio building games for Asian players; and Woke, an innovative blockchain-based gaming project soon to be officially announced. Prior to Global Chain, he founded Gaming Incubator, which sourced and took to market gaming product and platform innovations; was SVP Strategic Markets for Inspired Gaming Group after he had previously founded Octavian Global Technologies; and had developed several land-based casinos operations around the world. Other notable achievements include the co-establishment of Avalon Casino Management, which set up the Playboy Casino in Rhodes, amongst others; the establishment and growth of Mikohn’s gaming divisions in Europe, South Africa and Japan; and the founding and inaugural Chairmanship of the European Gaming Organization.
This is enabled by the blockchain, with costly lawyers replaced by smart contracts that give an audit trail of income and how it is distributed. Imagine the incumbent value chains being shaken up so more income is available to fuel innovation in the types of games be-
Some governments and regulators still do not accept Bitcoin as a digital currency for everyday use.
36
OCTOBER 2018
ing created. That is a paradigm shift that starts to place greater reward on the origination of ideas. Imagine the implications of blockchain on homologation. Simply in the delivery of lotteries across borders, there is huge potential by creating massive prize funds with an entry mechanism that does not discriminate across financial borders. These example applications of blockchain technology in gaming might seem far away, but they are closer than you might think. This article on blockchain in gaming is intended to provide the reader with some insight into where we are today and where the technology could take us in the future. I personally see the future with excitement as I consider the potential blockchain and cryptocurrencies have of democratizing the delivery and consumption of new gaming solutions. I embrace the regulation that is sure to come and look forward to revisiting this overview in the coming months and years, as the environment develops and the industry matures.
www.revistacasinoperu.com
OCTOBER 2018
37
AFRICA / REPORT
Huge growth opportunities
A YOUNG GAMING INDUSTRY WITH GREAT POTENTIAL 38
OCTOBER 2018
in the three markets region as a whole (South Africa + Nigeria + Kenya), gross casino gambling revenues will total an estimated R20.0 billion (USD1.8 billion) in 2019, a 2.5% compound annual increase on the R18 billion (USD1.7 billion) in 2014. Africa’s economic growth isn’t confined to South Africa, as significant amounts of gambling occur in Botswana, Cameroon, Egypt, Ghana, Morocco, Namibia, Zimbabwe, Tanzania and Uganda. But let’s focus in the three most important markets for gaming in Africa.
SOUTH AFRICA: A PROFITABLE AND WELL-ESTABLISHED MARKET
W
ith a population of 1.26 billion people, Africa is the second most populous continent in the world. It is however crucially a young continent, with 67% of its population under the age of 35, with the ‘working population’ expected to grow exponentially to reach the 450 million mark over a span of 20 years. With a scenario that pres-
ents 35 of its 54 countries already entering mobile sportsbook, and with mobile payments being the most common used payment method in the continent, one can easily assume that this is a market full of potential. When it comes to the gambling sector it is however East Africa that propels itself as one of the most appealing regions of the continent. For instance,
With approximately 30 countries in Africa containing either brick-and-mortar casinos or various types of gambling machines, the continent’s most popular gambling destination, South Africa, includes 38 casinos and an estimated 38,000 slot machines. The Tsogo Sun Group is the largest casino operator in South Africa with 14 casinos, followed by Sun International with 13 and Peermont Global with eight. Ever since its legalization in 1994, gambling has grown into a multi-billion Rand industry in the country and, almost two decades in, the industry is worth more than R23 billion (USD1.62 billion) and contributes R26.9 billion (USD1.89 billion) into the country’s economy. The gambling market in South Africa consists of casino gambling, limited payout machines (LPMs), betting (horse racing and sports), bingo and the National Lottery. According to the recently released annual report of the National Gambling Board, gaming revenue in South Africa increased by 3.8% in the 2016-2017 period, with casinos contributed the highest OCTOBER 2018
39
AFRICA / REPORT
Interior of Time Square Casino, South Africa (Sun International).
amount of revenues (64%). Betting consists of fixed-odds bookmaking on sporting events, pari-mutuel wagering on horse racing and taking bets on the outcome of lotteries, and is the only category where online wagering is permitted. Betting GGR rose by 14.3% in 2016. Betting is the second largest gambling category behind casinos. In 2017, GGR for South Africa was R27.0 billion (USD1.90 billion), and some estimations say the numbers for FY2018 will be R28.8 billion (USD2.03 billion). The percentage GGR generated by casinos (compared to other sectors) showed a declining trend from FY2010 (84.4%) to FY2018 (64.0%), as a result of growth in other gambling sectors. According to PricewaterhouseCooper’s Gambling outlook report, the industry is expected to grow at a rate of more than 5% to reach nearly R35 billion (USD2.5 billion) by 2021. Also gambling taxes and levies will grow at a 5.2% compound annual rate to USD3.5 billion in 2021.
NIGERIA: YOUNG PEOPLE BET ON MOBILE Although Nigeria comes a distant second to South Africa in the market share of Africa’s gambling industry, it has the fastest growth rate at 7.7%. Casino gambling revenue is expected to be in the region of USD62 million by 2018. There are just three government-licensed 40
OCTOBER 2018
A view of Garden Court Blackrock Newcastle Hotel and Casino, in South Africa (Tsogo Sun).
casinos in the country. The real gambling spike in Nigeria comes from sports betting. According to a report by the News Agency of Nigeria, Nigerians spend around USD11.3 million daily on bets, USD4.2 billion a year. But the lack of betting legislation and regulation means the government makes next to nothing from the betting industry. However, the gaming industry has continued to expand, benefitting from the large and youthful population, improving Internet penetration, and the increasing access to Internet-enabled devices. Nigerian Communications Commission (NCC) showed that mobile penetration increased from 36% to 50% in
the last three years. In addition, Business Monitor International (BMI) research forecasts 182 million mobile subscribers in 2021, from the current 153 million. Considering this segment, some industry experts calculate that Gross Gambling revenues of Nigeria are expected to grow by 16% over the next five years.
KENYA: SPORTS BETTING AND TAXES Kenya is another country with an interesting sports betting market, held by the two top operators, Sportpesa and Betin. All forms of gambling are permitted in Kenya, including online and mobile
www.revistacasinoperu.com
gambling. The average total sports betting monthly revenues are estimated at about USD82-94 million. According to a GeoPoll survey, most Kenyans use mobile phones to bet, with 75 per cent of all wagers made through smartphones. According to the 2014-2018 Gambling Outlook by PwC, Kenya has the highest number of youth who have participated in gambling or betting in the past at 76%, followed by Uganda at 57%.
Kenya’s betting revenue is expected to reach USD50.49 million by 2020, up by 142% from 2014. Kenya also has the highest usage of mobile phones for gambling at 96%. As of end 2017, it was estimated that 85% of its almost 51 million populations has access to Internet usage, resulting in a 21.5% growth in a span of 8 years. Kenya’s betting revenue is expected to reach KSh5.1 billion (USD50.49 million) by 2020, up by 142% from 2014, with no suggestions that it will stop there. Anyway, there is some bad news for the country’s gaming sector. Kenya’s government presented a draft of the Tax Laws (Amendment) Bill 2018 in Parliament to install a 20% tax on
PROMISING GAMING SCENARIO Located in Africa’s most regulated jurisdiction, ICE Africa will bring together operators, suppliers, and regulators from gaming markets across the continent to discover this flourishing business industry. The first edition organized by Clarion Gaming will take place on October 24th-25th in the Sandton Convention Centre, South Africa. The show will comprise an extensive learning agenda, world class training and staff development modules, products and services from leading gaming brands and extensive networking opportunities. This exhibition will include relevant key speakers from Africa, US, Alderney, and Europe, and lots of conferences divided in three blocks of information: advanceAFRICA (business), microscopeAFRICA (innovation), networkAFRICA (meetings). There will also be some extra learning programs: the one-day course ‘Gaming for NonGaming Personnel. Land Based Casinos’ (October 22nd); the Casino Auditing program, accredited by UNLV (October 22nd-24th); and trainings from the Totally Gaming Academy (TGA): Slot Masterclass - Land Based Casinos (October 25th-26th).
South Africa also surprises with its constructions and its technology.
all lottery, betting and gaming winnings. This draft Bill follows the imposition on January 1st, 2018, of the new uniform 35% tax on gambling operators’ revenue. Kenyan sports betting operators, who had been paying 7.5% tax, vigorously protested this change, saying it made their business untenable and would force them to pass on the costs to their customers. It’s unclear whether the government intends to use the new winnings tax as a means of reducing the tax on operator revenue. If the new tax on winnings is passed, Kenya will be one of the few countries to adopt a hybrid model of taxing the gambling industry, affecting both the gambling companies and the punters at the same time. The situation in this respect is still unclear. OCTOBER 2018
41
LATAM / REPORT
Online gaming expansion perspectives
LATAM: LAND OF OPPORTUNITIES
The successful example of Colombian remote gaming regulation should promote in the other countries of the region a rapid legislative advance. This will allow for taking advantage of the tremendous potential of a market which strong growth of mobile use and Internet penetration.
U
ndoubtedly, Latin America is the next big region in which the progress of online gaming will be effective. Currently, with some differences in the instances of regulatory processes, a few countries are working to adopt a stable legal framework that acts as a safeguard for the investments made by the operators, as well as guaranteeing the interest of the players. LatAm is a flourishing and potential region for online betting. According to ‘LatAm: Fastgrowing online and mobile gaming market’, a report by online sports betting provider BtoBet, in 2017, 42
OCTOBER 2018
Latin America generated USD4.9 billion in total betting revenues, including USD1.9 billion in the mobile phone segment (it will be USD3 billion from mobile at the end of 2018). Currently, in lots of Latin American countries, people usually bet online from their mobile phones into foreign companies’ platforms. Right now, only Colombian iGaming market has been officially regulated. Mexico and Peru have drafted projects for that purpose. The other territories of the region haven’t developed yet any specific law to control the illegal offering. It is interesting to review each case here.
COLOMBIA: CONFIRMING ITS SUCCESS Inaugural online gaming license was granted in Colombia in June 2017 to Aquila Global Group for the site wplay. co. In late September 2018, the local regulatory body Coljuegos granted its 15th license to Meridian Gaming Colombia. The company will operate through the meridianbet.com.co platform. The firm joins other licensed sites, such as betplay.com.co, colbet.co, zamba.co, codere.com.co, mijugada.co, masgol. co, luckia.co, sportium.com.co, rushbet.
www.revistacasinoperu.com
co, aquijuego.co, apuestalo.co, betalfa. co and rivalo.co. Coljuegos expects that two more licensed websites could go live before the end of the year. This regulator continued with its fight against illegal gambling activities in an effort to divert more tax funds to national health and social services. Coljuegos president, Juan B. Pérez Hidalgo, said its association blocked over 1,800 illegal gambling websites that have been offering online gaming without authorization. Online operator tax figures for the first half of 2018 jumped 78 percent from the last six months of 2017, reaching USD4.8 million, processed by Coljuegos into the country’s health service. Coljuegos has collected more than USD8.7 million so far this year, for exploitation rights and administrative expenses. These resources have already made transfers for USD6.45 million, with which the subsidized health system is financed and with which it could serve more than 24,400 Colombians. According to Pérez Hidalgo, currently, there are registered a total of 1.27 million accounts of people in different operators.
PERU: WAITING FOR THE REGULATION Following in Colombia’s steps, but with its own characteristics, Peru is set to shortly become the second white market in the region. In September, lawmakers from the Fuerza Popular party presented to Congress the bill 03397/2018CR, which provides for the regulation of land-based and online wagers, as well as sports betting in Peru. The proposal sets forth that the sports betting premises should operate as annexes to authorized casinos where table games and slots are operated. The licensing (valid for at least three years with renewal option), audit, control and evaluation related to the development of sports betting operations will fall under the authority of the Directorate-General of Casinos and Slots, body pertaining to the Ministry of International Trade and Tourism (Mincetur). The opportunity to approve the new sports betting and online gaming law will allow for an additional commercial front and help attract investment. In summary, this will result in greater eco-
Colombia has been a pioneer in the regulation of iGaming in Latam.
nomic dynamism within this sector in the long term. In 2017, the gaming industry paid taxes for more than USD90.11 million and generated more than 150,000 jobs. But it seems those resources were not enough for Peruvian government.
According to Coljuegos, in Colombia, online operator tax figures for the first half of 2018 jumped 78 percent from the last six months of 2017, reaching USD4.8 million In September 2018, it was announced a new 12 percent tax on sports betting (Selective Consumption Tax) that operators in Peru will have to pay to the Tax Administration Superintendence (SUNAT) when the current sports betting bill is approved. This bill has created lots of controversy in the country. Of course, local sector entities such as APEJA have shown their total disagreement with that idea. This was one of the main issues debated during recent event Gaming Online (GOL) Expo Peru that took place in the Maria Angola Convention Center in Lima. Gaming referents at the regional level, such as Manuel San Roman Benavente, Constante Traverso, Carlos Fonseca and Fredy Gamarra, talked about the prog-
ress of iGaming legislation. At the same time, there was a commercial exhibition hall, which housed the new products and solutions from Rivalo, BMM Testlabs, GLI, Mohio Gaming, Espresso Games, Betchip, Meridian, Maximum GT, Betcris, Here Game, Golden Race, and Payu, among others. Despite the before mentioned problem, it is clear that Peru has all the elements needed to emerge as a major player in the Latin American scenario. As of 2017, it was estimated that there were 20 million Internet users in Peru and a total amount of mobile subscriptions of 35.56 million, for a population of 32.64 million. There is widespread consensus in the iGaming industry that Peruvian market counts with one of the most solid and competitive regulations in the region. A regulated online gaming industry in Peru will surely mark a new jurisdictional standard in Latin America.
MEXICO AND BRAZIL: TWO SLEEPING GIANTS Unfortunately, the same can’t be stated about Mexico and Brazil. Over the last years, in both big countries, a number of gambling bills have been under the consideration of the legislatives bodies, with no specific advances so far. In Mexico, a number of international companies have partnered with local license holders to offer online gambling. In 2016, the online betting business reached a value of USD2 billion, however 90% came from illegal websites. Anyway, positive news are expected for next year. OCTOBER 2018
43
LATAM / REPORT
system. There are currently 24 independent gambling authorities, one per jurisdiction. Only a few provinces (Misiones, San Luis, Entre Rios, Neuquen, Rio Negro, Chaco and Tucuman) have issued legislation or permitted online gambling operations, while others claim that it is prohibited. This situation has added to the lack of federal legislation for online gambling and the political division in the country has kept Argentina lagging behind its peers in this matter. For the moment, the online gaming sector in Argentina expects to be rescued from a legal limbo that has the country
tivities within their main gambling laws, although no online gambling licensees have been issued yet. Some international operators take advantage of this legal vacuum. At least seven online casinos (Casino Estrella, Slots Magic, Bet365, Exbet, Bwin, Betchain and Fortuna Juegos) are used by an increasing number of Bolivian gamblers, according to a July 2018 investigation by the Gaming Social Watch and Control Authority (AJ). Between 2013 and 2017, Bs2.6 million (USD376,000) escaped from government hands in bets. The current regulations (Law 060 or Law of Lottery and Chance Games and Supreme Decree 0781 of 2010) are clear when determining that none of these forms of online betting are allowed. But they exist, so Bolivia must move forward with an appropriate regulation in order to incorporate revenue generated by this activity. While in Uruguay, online gambling It’s time to expand the sports betting landscape on the continent. is not allowed by at the mercy of international operators, law; offshore sites are banned and just CHILE AND ARGENTINA: who monopolize the money from the sports betting are allowed through the NO POLITICAL SUPPORT Chilean current legislation (Law No. bets of national players and benefit in site SuperMatch.com.uy that belongs to 19.995) generally prohibits all games of the absence of an effective regulatory the government. In June 2018, the Nachance, whether land-based or online, framework. The introduction of a legal tional Department of Lotteries and Pools, unless authorized by special and ex- and regulated sports-betting market in a together with the Communications Serceptional laws such as those that ap- country known for its sports culture and vices Regulatory Unit (URSEC), blocked ply to the current casinos, state-owned for a long gambling tradition, with lots of more than 60 illegal online betting sites. gaming operator la Polla Chilena de casinos, bingos and lotteries, has been That drove the increase of the sports Beneficencia, the Concepción Lottery discussed and could prove very lucrative betting earnings in $90 million (USD2.73 and several racecourses. In 2017, the for operators and affiliates by attracting million), thanks also to the completion of land-based gaming sector generated consumers to bet on safe, verified sites. the Soccer World Cup. Looking at the regional landscape with an optimistic apgross revenue of USD755 million, an proach, there are high hopes for a future increase of 1 percent versus 2016. A BOLIVIA AND URUGUAY: iGaming regulation in more territories of similar growth rate is predicted for 2018. FIGHTING AGAINST ILLEGALITY It is estimated that a regulated online Some countries in LatAm have an on- the continent. Colombian regulators statgambling market in Chile could con- line gambling market that is considered ed that they will aim to work closely with tribute USD100 million annually to the regulated, even though many of these still authorities from other Latin American nastate while also serving to better protect lack secondary regulation to implement a tions on iGaming regulatory issues. This consumers with effective controls on fully functioning online gambling industry, is very positive news as will ensure a problem gambling. Meanwhile, Argen- as for example Bolivia and Nicaragua, standardized and harmonized regulatory tina has a more complicated provincial which have included online gambling ac- environment across the whole region. Brazil has been struggling with the challenge of legalizing and regulating gambling and is considered a sleeping giant due to its enormous potential to turn into one of the world’s biggest regulated markets. With very few exceptions, gambling is illegal in Brazil. For that reason, foreign online operators have mostly stayed out of Brazil waiting for a more favorable environment. KPMG recently put a number on the opportunity offered by Brazil, in a report prepared for industry trade body the Remote Gambling Association. It estimates that the Brazilian online betting market could be worth R$6.7 billion (USD1.64 billion), if properly regulated. In terms of gambling traffic, sports remain the biggest sector by volume. However, there’s also passion for lottery and for games of chance. In that sense, there’s almost certain to be plenty of eager operators and affiliates who will hope that legislation changes sooner rather than later.
44
OCTOBER 2018
INTERVIEW
www.revistacasinoperu.com
Novomatic
CONSTANT DEVELOPMENT AND EXPANSION In addition to its games, cabinets and systems for land-based gaming, Novomatic has online content from its subsidiary Greentube, which seeks to be distributed in legalized territories of the US and in Colombia and Mexico.
F
rom the booth #1259 at G2E Las Vegas (shared with its partner Ainsworth), the company prepares to showcase advanced products, with great new content for the US, driven by the Mount Prospect studio in Chicago, as well as the Austrian studios. Here are some of the key issues we discussed with Lawrence Levy, VP Global Sales, Novomatic.
How was the performance of your company in the US over the last twelve months? In which way you consider the post-PASPA scenario with the iGaming advancement will affect the sales of land based casino manufacturers? We’ve seen positive growth in the US this year. There have been very encouraging results, especially from our Novo Line Novo Unity II electronic table game systems, indicating that we are moving in the right direction. Casino slot placements have been growing steadily. The Novostar V.I.P. Royal 2.65 with games such as Asian Fortunes, Goddess Rising and Treasure of Tut are becoming popular around the US. In addition, this year, we launched From Dusk Till Dawn with some exciting results and are looking forward to showcasing our next IP title MacGyver at G2E. We are also seeing a positive performance in the VGT sector, with a lot of growth in Illinois and Pennsylvania to follow. As our online division, Greentube looks to enter the iGaming market in regulated states such as New Jersey. Sports betting post-PASPA presents a massive opportunity and is an area we are already very familiar with in Europe. We are looking to bring our knowledge
Lawrence Levy, VP Global Sales, Novomatic.
to the US and have partnered with Sportradar to develop a line of sports betting products that will be presented at G2E.
Which are some products’ initiatives your company is developing for the Latin American market? Our new cabinets were premiered in Latin America at the Peru Gaming Show in June and operators will be able to see these with new, targeted content at G2E. The Panthera 2.27 features two 27” screens, a new TouchDeck player interface and offers a huge selection of Novomatic games. Its sister cabinet, the Panthera Curve 1.43, as well as the new V.I.P. Lounge Curve 1.43, both feature 43” curve monitors in 4K resolution and look extremely impressive. Other highlights include the Enchanted Fortunes linked progressive system and our leading ETG system with a range of brand new side bets. We are also developing specific games for the region and
will introduce a new game mix at G2E targeting Latin America.
What sales perspective do you anticipate for the different segments of your company in the next year? Will there be an expansion of Novomatic’s virtual content offering to the US and Latin America? Our new range of cabinets, games, links, ETGs with side bets, systems and sports betting developments, as well as media and signage solutions, will continue to drive the expansion of Novomatic around the world next year. The US and Asia are key regions of focus for expansion and our new product lines targeting those regions will ramp up our global footprint. There will also be an expansion of our online content via Greentube into Latin America and the US. We are already in advanced discussions in Colombia and Mexico, and are staying ahead of new, regulated markets opening in Latin America and the US. OCTOBER 2018
45
INTERVIEW
Merkur Gaming
ALWAYS NEW PRODUCTS UNDER THE MERKUR SUN The renowned company maintains its combination of traditional solutions and innovations enthusiastically received by operators and players.
David Orrick, Director of Industry Relations, Merkur Gaming.
T
he experienced David Orrick, Director of Industry Relations at Merkur Gaming, explains to CASINO Magazine the progressive growth of the company in the United States, as well as anticipates the highlights of Merkur for G2E Las Vegas show. Besides, he points out the successful performance of the firm in the Latin American markets.
How would you define Merkur Gaming’s recent expansion to the US market and what possibilities does this territory offer to your company? In the US, we will continue with our current strategy, which is market entrance and expansion of our brand, and the installment of new products on different operators’ resorts. We will be in G2E Las Vegas (Booth #3353) with a broad portfolio of more than 120 games. One 46
OCTOBER 2018
of the key elements for our market entry in the US is the development work that has been done by Sunshine Games. This is a games design facility studio based in Las Vegas, Nevada, headed by Mike Halvorson, a very experienced designer. We started with the studio at the beginning of 2017. Just in nine months, for G2E 2017, we already had two brand new games designed by Sunshine. This process has been remarkably quick. That company also offered us some great ideas for new products. For instance, a very successful game designed by Sunshine is Taco Tuesday. In terms of new attractions, these are games that American operators and American players would instantly feel attracted to. Sunshine is creating games ‘Made in America by Americans for Americans’. By the way, great games need great robust cabinets. We have extremely successful traditional cabinets, such as the Avantgarde slant top, Merkurstar upright, and the new Evostar. In next Las Vegas show, we will have the first edition of a new development product line: a curved cabinet named ‘Allegro’. The message that this cabinet transmits is the following: ‘Play quickly, have fun, be successful.’
What importance does Latin America currently have to Merkur? The whole Latin American market is extremely important to Merkur Gaming. We have right now four subsidiary companies in Peru, Colombia, Mexico and, most recently, in Argentina, and a central hub company located in Florida. Within an established period of four years, Merkur Gaming in Mexico, with general manager Ronnie Ferreira, has gone from being a quite new manu-
facturer to a top level market leader. There is an enormous demand for new Merkur products, which are installed in almost every casino of the country. The one thing that is notable about every country in Latin America (including Paraguay and Uruguay) is the developments and the increasing sophistication of their player base. They really know the games and understand what exactly they want: high-level entertainment. We have also Peru, a classic example of gaming success through correct regulatory framework. The Peruvian gaming model is so good and effective that is being adopted by some other countries in the region and abroad. They way that Peruvian authorities have regulated gaming is beneficial to the nation in terms of tax revenue and employment, and also to the suppliers going into that market, because they can freely promote, support and sell their products. So I would say that Peruvian authorities really ‘understand gaming.’ Regarding Colombia, I would affirm that is a good market for Merkur, but, compared to Peru, its regulatory climate is not quite as beneficial or helpful. However, it is still a strong and attractive market where we have had continuous product installations. Our team there is very experienced and we are well established. Latin America is a territory where is always room for expansion and sales growth.
What are the main goals for your company in the next year? It’s plain and simple: further development and expansion, and creation of new and better products on an ongoing basis.
www.revistacasinoperu.com
Ainsworth Game Technology
AT THE FOREFRONT OF THE INDUSTRY
With amazing products, both for the land-based casinos and the online segment, the company has been consolidating its sales in Latin America.
I
n his conversation with CASINO Magazine, Miguel Cuadros, President, Latin America, Ainsworth Game Technology, underlines the experience and professionalism of the corporation’s team, especially in the areas of customer service, marketing and pre and post-sale processes.
Could you define the cornerstones of Ainsworth’s business success in Latin America? At Ainsworth Latin America, we pride ourselves on having settled a structure that encompasses sales, service, and a regional development team that is constantly working to pioneer new facets in gaming. Because of this, the region has experienced organic growth that continues to outperform year after year. Our focus includes the development of innovative products with specific characteristics for each region, which offer lots of opportunities to increase game performance. Regional offerings allow us to maintain a very competitive level in the market. Ainsworth is more than a good product. We also have a group of professionals dedicated to offering excellent customer service, an arduous follow-up in the pre and postsale processes, and significant support in marketing to complement the sale. That is where Ainsworth makes a difference.
Which are the keys to fully understand not only the needs of casino operators, but also the constantly evolving demands of players? We have a business team of professionals with extensive experience in their field, which allows us to capture the specific needs of the casinos and adapt our product to meet those needs. An important part of our business model is that Ainsworth focuses on our relationship with the casino
operator. They are our partners in the industry and we face challenges right along with them; that is the key to our growth.
After the completion of Novomatic’s investment in Ainsworth, how do you think your company is benefiting from that operation? In which segments and markets do you notice this evolution? We believe that the acquisition of 53% of Ainsworth shares by Novomatic proves to be a strategic alliance in many ways. For North America, it gives Novomatic access to the extensive gaming licenses Ainsworth maintains throughout the US territory. In Latin America, we will continue operations as two independent companies, both with a strong presence in different markets.
The company provides interactive social game with Players Paradise Slots on Facebook. To what extent do you consider markets such as the US and Latin America offer huge opportunities for growth in new forms of remote gaming? Ainsworth remains at the forefront in the industry and we will continue to evolve along with the ever-changing world of online games with social games like Players Paradise Slots and King Spin Slots. Both platforms have experienced booming success. Ainsworth Latin America has also ventured into the real online gaming space with our first online platform, Mustang Money Casino, to be launched in a few months exclusively for the Mexican market.
With more than nine months of this 2018 behind, what have been the highlights for your company so far this year and
Miguel Cuadros, President, Latin America, Ainsworth Game Technology.
what excites you the most about the rest of this season? Among the highlights in recent months, I’d like to mention the exemplary work we have done as a team in all aspects of the launch of our new EVO cabinet, which adds variety to the exciting line of Ainsworth cabinets. Above all, we are very excited about the return of the most important game in the history of Ainsworth, the acclaimed Raging Roosters Reloaded, which will occupy an important space in casinos on the Latin American gaming scene. Another important objective to be achieved is the consolidation and improvement of our operations, as well as the realigning of our structure to meet the demands of the business. These actions will increase production levels and optimize the distribution of the product, which will allow us to continue providing efficient customer service. OCTOBER 2018
47
INTERVIEW
JCM Global
STATE-OF-THE-ART TECHNOLOGY TO ASSIST OPERATORS The company continues being a favorite of casinos around the world for its wide array of award-winning products. thermal printers. Additionally, Osage will be the first go-live location of our patented Fuzion technology. We also provided two exterior LED video walls, and one interior LED display that surrounds the door entry into the High Limit area. As an example in EMEA, Casino da Madeira chose iVizion for all new slot purchases and has named JCM its new preferred supplier. And as an example in APAC, Landing Casino at Jeju Shinhwa World chose iVizion, GEN5, and ICB. These are just a few examples of what has been a very successful year.
Considering the gaming industry is always looking at trending situations, which are the main challenges for manufacturers such as JCM Global after the legalization of sports betting within the US? Diego Mejia, New Business Development Manager, Latin America, JCM Global.
D
iego Mejia, New Business Development Manager, Latin America, JCM Global, explains the additional advantages that the company’s solutions deliver to all of its clients.
How has been the business evolution of your company in the US market over the last twelve months? JCM has had a very successful 2018 in every region where we operate. Our customers in the Americas, APAC, and EMEA have been very receptive to our products. For example, in the U.S., Osage Casinos were a printer customer, and now they have converted six casinos to JCM products, including iVizion bill validators, ICB Intelligent Cash Boxes, and GEN5 48
OCTOBER 2018
At JCM, we are seeing this as an incredibly opportunity for our line of digital displays. Casinos are thinking about ways to convert existing space to accommodate customer interest in sports betting, and, of course, customers will want to view the sports action on the best displays possible. To help operators get a sense of what is possible, at G2E 2018, we will demonstrate various ways for today’s operators to optimize this unique opportunity. It begins by connecting to PixelPro Display Technology. From PixelPro displays that can be built to essentially any size and shape, to the entirely immersive visual fidelity of 4K Ultra HD and beyond, PixelPro Display Technology has the display and content solutions you need to deliver patrons the ultimate sportsbook experience.
Why do you think that, even with the advancement of electronic
and mobile transactions, cash still remains the preferred payment option for patrons on the gaming sector? Players prefer cash for a variety of reasons. One is that playing casino games with cash and winning cash is part of the fun. The prevalence of cash in the gaming industry is why JCM is so vigilant about constantly developing new software and technologies to ensure operators are protected from counterfeiters and other types of cheats. Additionally, because iVizion scans an entire note, front and back, it captures serial numbers, which can further assist a casino’s anti-money laundering efforts. Besides, regulators are nearly universally opposed to increasing ease of access to player funds via use of credit cards or debit cards at the EGM or with mobile access.
In which way your company is going to meet the technological innovation standards demanded by the dynamic gaming market in the next G2E Las Vegas show? That dynamic environment is what makes G2E such a fun show. We love seeing all of the new products and technologies from suppliers across the industry. Similarly, our development teams are constantly innovating to ensure that our customers are protected with the latest technologies to help them defeat counterfeiters and other types of criminal activity. We are also excited to show our patented technology Fuzion. Fuzion helps operators give players even more entertainment options at the EGM, including the potential to enable sports wagering, lottery wagering, daily fantasy sports wagering, promotional couponing, and more.
www.revistacasinoperu.com
OCTOBER 2018
49
INTERVIEW
Casino Technology
HIGH END SOLUTIONS FOR LATEST TECHNOLOGY TRENDS The company aims to increase operators’ bottom line by giving them excellent opportunities to offer their clients exciting gaming experiences that will be remembered. number of monitors. The slot machine features the multigame line Speed King, with 60 titles in a single game pack, selectable through configurable lobby. The multilevel Progressive line is presented by the multigame Gorilla Wheel, featuring 6 progressive slot themes in a single game pack. EZ Modulo is offered with Asian themed games as well, depending on customers’ preferences. We have also launched a new game mix, part of the successful Tower series of game suites, under the name of Tower 104. Available with Tower slant top slot machine, includes 40 titles with variety of configurations for increased chances of a big win. Besides, in Las Vegas, we will exhibit the next generation of online games series, Neon games.
Rossi McKee, Vice President, Casino Technology.
R
ossi McKee, Vice President, Casino Technology, communicates that, in addition to generating excellent performance products in different markets, the company has had very successful participation in key events in 2018. In that sense, Casino Technology is preparing to celebrate its 20th anniversary on the next year.
What will be the company’s array of solutions for G2E Las Vegas show? EZ Modulo series of slot machines will be the focus of our company’s presentation during G2E Las Vegas. Standing out with contemporary modular design, the product line offers great flexibility to configure the machine with different size and 50
OCTOBER 2018
What’s been the commercial performance of Casino Technology in Latin America during this year? Which products have had the best results? With very successful participation in key events such as Peru Gaming Show, Caribbean Gaming show, Juegos Miami behind, we estimate a fruitful year in terms of commercial performance. We have concluded multitude of deals and extended partnerships in pursuit of our strategy to strengthen company’s position in the Caribbean region, Mexico, Argentina and Peru, and to enter firmly in Chile and Panama. Increasing our potential through opening a new production facility in Mexico, we are ready to build on the advancements we have achieved already and to have better exposure in the region. We are offering exciting high end products, presented with EZ Modulo slot machines. The trend setter slot machine Arch remains amongst the most sought
after products in the region, now offered with new game mix, Gamopolis Arch 2, consisting of 40 fascinating titles.
Do you think that the treatment of women in the industry has improved? What aspects still need to be considered about the important role of women in the sector? While slow, much progress has been made over the past few years and women’s role in gaming is increasing significantly. Women in the industry are putting their best efforts forward to create an environment in which all can thrive and succeed. The hard work, passion, and persistence led to the constant progress and resulted in achievements that were beyond imagination only some 20-30 years ago. The Bulgarian Trade Association of Manufacturers and Operators in the Gaming Industry (BTAMOGI), of which I am an Honored Member, has been persistently encouraging and providing a platform for expression of women in the gaming industry. Next November, during the annual Eastern European Gaming Summit, together with Global Gaming Women, we will organize a special event for women in the international gaming industry.
What do you foresee as key trends in the gaming arena for 2019? The gaming industry has never experienced such a rapid change in its history as in the recent few years, and players have never been better off due to technological advances. Casino Technology stays true to its core commitment to offer its customers and the players’ truly amazing experience and high end products, appealing to the latest technology tendencies and their needs.
www.revistacasinoperu.com
IGT
STRONG CONTENT PIPELINE ACROSS ALL VERTICALS IGT is committed to evolving gaming in meaningful ways that will inspire progress for its customers and partners.
I
n this exclusive interview, Marcel Heutmekers, Senior Vice President Gaming, Latin America, IGT, states that there are tremendous growth opportunities for the company in Latam. At the same time, he considers that IGT has to adapt to changing business conditions and continue to stand out in an increasingly competitive marketplace.
How has IGT’s business in Latin America evolved in these first three quarters of 2018 compared to the same period in 2017? Throughout 2017, IGT implemented a series of organizational changes that brought our people and services closer to our customers throughout the international markets. Our primary goals were to achieve better alignment with our customers’ needs and the regional market opportunities, and to enhance our speed to market. With the new structure in place, 2018 continues to be a positive year marked with meaningful product introductions for IGT. This year we added the CrystalDual 27 cabinet and its robust content library of games (such as Solar Disc, Temple of Fire and Scarab) to our solutions portfolio for Latin America. We have also dramatically increased the market penetration of the CrystalCurve cabinet in both the core and multi-level progressive segments. IGT introduced the CrystalCurve cabinet in several Latin America markets in Q4 of 2017. Expanding the breadth and depth of our multi-game library continues to emerge as another important area of focus for IGT. We have extended our diversity HD multi-game bundles to include many of
our proven performer games titles, and also introduced USwitch, our intuitive, multi-game offering.
What opportunities and challenges does Latin American market currently have for the growth of your company? We view tremendous market opportunity for IGT in Latin America. Our content pipeline across all our product verticals is strong, and our customers know they can place IGT content on their floors with confidence based on the extensive internal and external performance testing that our games endure. Additionally, several replacement cycles are expected in the near term and IGT has a competitive proposition for many of those. In terms of challenges, we have to remain adaptable to changing market conditions and continue to push ourselves to stand out in an increasingly competitive marketplace.
In which way the IGT’s R&D team is working to create cutting edge products in content, design and math to attract new players? IGT is committed to evolving gaming in meaningful ways that will inspire growth for our customers. IGT’s R&D efforts touch all parts of our product portfolio. For example, IGT’s new systems bonusing apps help our customers better understand their players and cultivate world-class player loyalty programs, while the multi-sensory technologies of our True 4D product family and the many new hardware introductions that we have made over the last 12 months all propel the player
Marcel Heutmekers, Senior Vice President Gaming, Latin America, IGT.
experience in ways that are meaningful to our customers and their players.
What are your company’s Play Digital division expectations regarding the progress of iGaming in Latin America? Our PlayDigital team closely monitors evolving digital gaming trends and market opportunities worldwide. IGT has an experienced team and a proven content library to help our customers realize digital gaming opportunities in Latin America. OCTOBER 2018
51
MALTA / INFORME IGAMING
With a business-friendly policy
MALTA: A LEADING IGAMING HUB
The small European territory is a global example and a giant in the regulation of this activity. The country has recently shared its experience in Latin America, as well as developed and approved a new regulatory framework.
A
s the first EU country to license online gaming, Malta can look back at almost two decades of growth in the iGaming sector. Over this time, the island gained the best understanding of the environment remote gaming companies need to flourish and be successful. As a consequence, up to now, some 280 companies hold licenses from the MGA for online offerings such as casino-style games, lotteries or sportsbooks. Despite all the success, Malta realized that it would need to continue to evolve. That’s why MGA defined a new Gaming Act (Cap. 583 of the Laws of Malta) that came into force in August 2018 after making its way through the Maltese Parliament. One of the major changes was the introduction of only two different licenses: one B2B and one B2C. Other changes were the introduction of a new set of license fees and compliance contributions, and the fact that licenses will no longer be valid for a 5-year period, but for a 10 year-period. The new regulation is also taking into account emerging industry issues, such as skillbased games. Currently, Malta is looking into the potential of cryptocurrencies and blockchain technologies.
A MALTA-LATAM SYNERGY In September 2018, important executives from the Malta Gaming Authority (MGA) and SiGMA (the Summit of iGaming, Malta) successfully participated in the 26th edition of SAGSE Buenos Aires, a traditional gaming event in Argentina
organized by Monografie. In that context, SiGMA generated the Alpha Boot Camp (ABC), an exclusive meeting with 150 Latin American operators. During that conference, lots of key issues of the gaming sector were in discussion, such as Differences and similarities between the Latin American and European online gaming market; Overview of the latest updates on regulatory issues: challenges and opportunities; The Example of Europe: gaming, blockchain and distributed accounting technology, among others. There was a very good feedback from the LatAm businessmen, who expressed their interest in knowing how Malta is dealing with those issues. Besides, SiGMA brought to SAGSE some of the best European iGaming suppliers (1xBET, My Affiliates, TV BET and Pentasia iGaming Academy). In a pitch session, each supplier had three minutes to present a portfolio of solutions to an attentive audience of LatAm operators. Of course, each pitch was followed by five minutes of Q&A. Both speakers and attendants were very satisfied with the results of the meeting and the possibilities of learning and networking. Also in SAGSE, Michele Magro, MGA Deputy General Counsel, offered a conference for industry professionals where he explained different regulatory subjects: Introduction to Malta and to MGA; Licensing and compliance scheme; Prevention of money laundering; Protection of the player; Data Protection; Cryptocurrencies/ The test environment of distributed accounting technology.
www.revistacasinoperu.com
OCTOBER 2018
53
MALTA / INTERVIEW
Summit of iGaming, Malta
MUST-ATTEND EXHIBITION Through his presence at SAGSE Latin America, the executive informed about the advantages of the Maltese market and invited LatAm executives to travel to Malta and learn more about its regulatory dynamics.
S
iGMA is one of the largest shows in the world for online gambling, with more than 12,000 attendants. The leader of the event shared his knowledge about online gaming and highlighted the potential of Latin America to take the teachings of the Maltese market and move forward with the regulation of the activity.
What made you decide to create an Alpha Boot Camp with Monografie for SAGSE Latin America show? Giorgio Gennari Litta, from Monografie, SAGSE’s organizer, approached us and said: “It’s time for Latin American operators to start exploring and expanding their businesses into the online segment.” They suggested that we could be an ideal partner for this proposal. The goal was to bring to SAGSE some iGaming suppliers from Europe and connect them with Latin American operators. So that was the conception of Alpha Boot Camp. We had a very positive reception here to our ideas and the sharing of our wide experience in this field. There was a good business climate and I could see lots of interest from LatAm operators.
Why do you think Malta became the main online gambling market? Malta is a small state that decided to develop a regulatory framework for its market. We knew that online gaming companies should respond to certain standards. The Malta Gaming Authority created a solid legal framework that obliged companies to comply and respect those regulations. Now, gaming represents 12 percent of Malta’s economy.
54
OCTOBER 2018
Eman Pulis, founder and CEO, SiGMA
Which are the advantages of participating in the regulated Maltese framework? Besides relevant tax exemptions and deductions, Malta extends different benefits, including a multinational workforce, with people from all around the world. There is a huge amount of suppliers that are based in Malta, as well as largest operators and fast-growing startups. The country also offers to investors a pro-business attitude, a great infrastructure and a very supportive regulatory environment.
Malta has recently decided to regulate blockchain. Can you explain more about this issue? Yes. Malta continues pioneering the gaming industry with the decision of regulating blockchain. I think that, in the near future, all of the companies will use blockchain to operate their businesses, and they will also use cryptocurrency to accept other forms of payment. Therefore,
they will have to look at Malta again to correctly regulate those operations. New gaming modalities such as skill-based gaming are also being regulated in Malta.
What would you recommend to a European company interested in investing in Latin America? The most important thing to do is to respect the legislation of that jurisdiction; to make sure that it’s operating in a secure environment; and of course to associate to a local company with better knowledge on the market and its business opportunities. I think there’s a huge potential of all the Latin American markets to embrace the online gaming. That’s why we decided to travel to Argentina and participate in SAGSE. We will be back in this region at least once a year. We also invite Latin American operators, suppliers, manufacturers and regulators to attend the fifth edition of SiGMA, that will take place between the 28th and 30th of November.
www.revistacasinoperu.com
Malta Gaming Authority
THE MOST RESPECTED REGULATORY ENTITY For second year in a row, MGA delivered a few seminars on gaming regulation at SAGSE show. A relevant issue in debate was how Malta is implementing the new legal framework.
T
he executive talks about the essential issues and regulatory changes concerning online gambling in this European country.
Why did the Association decide to elaborate a new Gaming Act? What are the main advantages of this new normative? Law and regulation always has a tough job keeping up with developments, especially in a dynamic environment as that of the gaming industry. Thus, gaming laws need to be flexible enough to accommodate to new developments. Malta had a number of laws dating back to the 1930s covering different aspects of gaming, and we felt that it was time to consolidate every gaming activity under one legal instrument, whilst updating the same regulatory framework with new provisions that, from experience, will help the regulator working better. Some key changes would include the convergence of the licensing framework which is neutral of channel (land-based or online), new compliance and enforcement powers, and new player protection and advertising regulations.
How is MGA currently working on a new blockchain and cryptocurrencies’ regulation? The MGA is coordinating with other domestic regulators, primarily the Malta Financial Services Authority and the Malta Digital Innovation Authority, who are implementing a national strategy on the regulation of innovative technological arrangements such as distributed ledger technology platforms and virtual
financial assets, as well as the regulators responsible for anti-money laundering and data protection in order to create a ‘Sandbox Environment’ within which licensed gambling operators would be able to use cryptocurrency as a payment method, as well as blockchainbased platforms. The MGA is taking a cautious approach in allowing both technologies, and the sandbox is meant to impose stringent limitations for a period of time until the MGA measures the risks and understands existing mitigation measures. The sandbox guidelines will be launched in Q4 2018.
After skill-based gaming regulation in Malta, there are three verticals MGA is considering: Daily Fantasy Sports, eSports and Video Gaming. What can you comment on the possible regulation of these segments? We’ve been regulating daily fantasy sports as a ‘Controlled Skill Game’ since January 2017. However, we haven’t categorized any other activity as a ‘Controlled Skill Game’. That would require a Controlled Skill Game License. We’re looking at eSports challenger sites as a possible aggregate in the medium term to the ‘Controlled Skill Games’ category. Lootboxes and other gambling-related elements in videogames, as well as videogame influenced gambling products such as eSports betting and skin gambling are also very topical.
What new challenges will MGA face in the near future? Naturally, our biggest challenge at
Michele Magro, Deputy General Counsel, MGA
the moment is implementing the new legal framework. It comes with many new obligations on regulated operators and new processes for the MGA, as well as for other ancillary service providers. This will take time to adapt and get used to. Another big challenge that we’re currently facing is implementing our Enhanced Automated Reporting Platform and re-writing the MGA’s technical standards. One of the things we always strive to achieve is to have a regulated framework that covers a wide array of products. As these continue developing, we need to keep our whole framework updated, and able to detect regulatory risks, and, if necessary, change our control measures to mitigate such risks. In fact, this is what we are doing with the cryptocurrency and distributed ledger technology sandbox.
OCTOBER 2018
55
MALTA / IGAMING
TV BET
EXPERTS IN CASINO GAMES
W
e are here at SAGSE to introduce our company to the LatAm market. TVBET is based in Poland and it has a lot of certifications. We have 9 casino games at the moment, including live games: KenoBet, JokerBet, 21Bet, BackgammonBet, PokerBet, WheelBet, 5Bet, 7Bet and NardyBet. Our software is easy to understand and can adapt exactly to any operators’ needs. All of our games are based in random systems, against cheating. Besides, operators can raise or lower their betting margin. Our games are easy to play, quick and attractive. All of them are available 24x7x365 in our platform. The games start every three minutes so a player doesn’t have to wait between betting. Moreover, players will never have their accounts in zero, since we have a very flexible system with all kinds of jackpots. We can develop a game for any operator or include in our platform a game created in the operator’s studio. Our primary task is to generate and then maintain an up-to-date content that will keep any player ‘glued’ to their computers, TVs or smartphones’ screens, betting in the operator’s website as long as possible.
My Affiliates
PRACTICAL TOOL FOR AFFILIATES’ MANAGEMENT
W
e are a software company based in Malta, Australia and Canada. Once your online proposal is ready and you want to start operating, how do you attract people to register to your platform? How do you manage the traffic circulation? That’s when MyAfilliates appears. Affiliate is advertising. The idea is to let people know you are online, have a product that could interest them and that it would be a good idea for them to visit and register in your website. Operators are going to need a tool for that. We offer a platform that is going to help you achieve those goals. With the Affiliate Manager tool you’ll get a wide range of functionalities, such as affiliate tags, automatic or manual signup approval and email verification. Through a dashboard and graphs for each affiliate, MyAffiliates users can access granular information on affiliate performance, manage and assign multiple commission plans for tailor made deals at an affiliate level, enhancing the competitiveness of the offers of the affiliate program. Our services also include reporting, customer management, commission plans and more, so you can optimize your operations.
56
OCTOBER 2018
www.revistacasinoperu.com
Pentasia iGaming Academy
COMPLETE LEARNING AND TRAINING SYSTEM
I
n 2015, iGaming Academy was launched with a mission to educate the iGaming industry. Since then, and up to now, we have trained over 25,000 people for 60 clients. We offer over 20 courses in English, Spanish and also Portuguese. There are two ways of learning: online or face to face. Our sessions, workshops and conferences respond to a customized system, depending on each company’s needs. We have a flexible structure to follow your staff progress through a course. Our system can produce over 50 types of reports for any course or training. You can access any training of your staff in any country. Our learning solutions include compliance courses (responsible gaming, AML, anti-fraud, payments & handling), skills courses (iGaming, online casino management, digital marketing, and business analytics) and a Learning Management System (LMS). We are partners with Pentasia, a recruitment agency specialized in digital, technology and other professional roles across a range of industries. So we can cover all stages of your company’s staff management: from hiring staff to training your workforce, in order to taking your company to the highest business levels.
1XBET
UNIQUE ONLINE BETTING SOLUTIONS
O
ur company started working in 2007 and, since then, we have been growing year after year. Currently, we have a Curacao license. We are a leading sports betting company with fixed fees, more than 300,000 registered users and a 24x7 assistance service. We value our partners and try to deliver them the best tools so they can make progress in their businesses. 1XBET generate unique online betting solutions tailored to any operator. In our platform, a player can bet on sports such as soccer, tennis, racing, boxing, basketball, cycling and golf, among others. We also have slots, bingo and live casino. Our attractive proposal includes a constant flow of promotions. For example, those who sign up for the first time receive up to a 100% bonus on their first deposit. To improve the gaming experience, 1XBET offers an application that can be downloaded through the Android store. In addition, we have several currency options, making more comfortable any deposit or withdrawal operation. We understand that Latin America is a market with enormous potential for betting. We can provide our experience and our high quality products.
OCTOBER 2018
57
US / REPORT
New trends: DFS and sports betting
SYNERGY THAT INCREASES FUTURE REVENUES The innovative and dynamic gaming market motivates companies such as DraftKings and FanDuel to develop original and entertaining products that meet the expectations of all gamblers.
nies control more than 90 percent of the US paid daily fantasy sports market, and it challenged their merger over monopoly concerns), the companies focused on preparing their structures to adopt sports betting offerings, spending time and money to be ready for a positive legislative decision. When in May 2018, the US Supreme Court finally declared PASPA unconstitutional and allowed states to define their own regulations, DraftKings and FanDuel were ready to make the big jump and move into the sports betting space.
DRAFTKINGS: SEIZING THE OPPORTUNITY
DFS providers have been preparing for the opening of the US sports betting market.
T
he concept of a daily league was spawned from Fantasy Sports leagues, enabling players to take part in a competition which is completed over 24 hours. These leagues, termed DFS (Daily Fantasy Sports), allowed users to create teams from a pool of sports players who are competing in matches taking place on that day. In many DFS leagues, real money prizes are offered to participants, with players in a league placing money into a pot, before the user with the highest score takes the greatest portion of the prize. Whilst DFS
58
OCTOBER 2018
requires an element of skill, there is also an element of luck, as sports results are unpredictable and do not always follow statistics. Daily fantasy sports posted a great year on the legislative front in 2017, gaining legal status in several states and bringing the grand total to 18 US jurisdictions that have deemed the activity to be a game of skill and approved such wagers. The United States’ DFS market is dominated by two companies: DraftKings and FanDuel. After a failed attempt to merge in 2016 (the US Federal Trade Commission estimated the two compa-
During the whole 2018, the two US-based DFS operators have been attempting to leverage their popularity and diversify their business in the country to establish themselves as key players in the newly opened sports betting markets. Of course, the business size of those markets is completely different. Research firm Eilers & Krejcik Gaming detailed that, in 2017, DFS generated revenue for USD320 million, while sports betting represents an estimated USD150 billion market. The ‘crossover’ was viable. A research conducted by Ipsos for the Fantasy Sports Trade Association (FSTA) showed that 79 percent of fantasy sports players who are not gamblers said they will likely participate in sports betting once legalized in their states. Besides, the survey determined that a person who plays fantasy sports and wagers on sports at the same time spends more on their fantasy sports contests and wagers than the aver-
www.revistacasinoperu.com
age sports bettor. In order to achieve its goals, DraftKings opened offices in Hoboken, New Jersey, and in San Francisco, with a future location in Las Vegas. It also appointed executives with lots of experience in betting for a new sportsbook unit. The main step was to form partnerships with operators, sports leagues, streaming services, and other entities. From May to September 2018, DraftKings sealed a number of agreements for boosting this niche. In June, it signed a deal with Resorts Hotel Casino Atlantic City to introduce sports betting in New Jersey (becoming the first operator to launch legal online and mobile sports betting in that state). In June too, DraftKings agreed with Kambi Group to receive technology and services for its sportsbook platform. Then, the firm closed a licensing agreement with the Del Lago Resort & Casino in New York to establish a physical DraftKings sportsbook inside the property. Regarding the DFS business, in June and July, DraftKings continued to expand its operations; firstly, striking a nationwide partnership with sports bar and restaurant chain Buffalo Wild Wings; and secondly, launching a daily fantasy game for tennis on the inaugural day of the Wimbledon Championship. In August, DraftKings “exceeded expectations” during its first month of online betting in New Jersey as it made USD2.97 million in revenue. September has also brought good news: the company added PayPal as a payment option for its clients, and signed a deal with sports data platform provider iSport Genius to globally deploy data insights across the DraftKings sportsbook platform.
FANDUEL: THE POWER OF THE BRAND DraftKings’ main competitor in the daily fantasy sports (DFS) market, FanDuel, began to move too into the sports wager vertical. One of the main news for the whole industry was the USD465 million merge with the giant UK bookmaker Paddy Power Betfair, completed by July, to propel its North American businesses. Three days after the merge, on July 14th, the FanDuel Group opened its first
sportsbook at the Meadowlands Racetrack in East Rutherford, New Jersey, taking bets on baseball, soccer, football, basketball, golf, boxing, motorsports and other sports. In other operations, in June, the Greenbrier Resort Casino Club in West Virginia launched its FanDuel Group-powered sportsbook, having struck a deal to bring betting to the members-only venue. Furthermore, in July, FanDuel agreed with IGT to leverage its PlayShot’s built-in content management system in order to deliver a bespoke mobile and desktop user experience for the New Jersey market.
A person who plays fantasy sports and wagers on sports at the same time spends more on their fantasy sports contests and wagers than the average sports bettor. This integration to IGT’s platform helped FanDuel to expand and enhance its sports betting offering in that jurisdiction. In August, FanDuel Group partnered with Boyd Gaming to establish and operate mobile and online sports betting and gaming services under the FanDuel brand in the states where Boyd Gaming is licensed. Most recent news of FanDuel are the expansion of its sportsbook to IP Casino Resort and Spa in Mississippi; the launching of mobile sports betting in New Jersey via its sportsbook app; and the reopening of paid-entry contests for the DFS platform to customers in Texas, against the recommendation of the state’s attorney general office.
DFS IS STILL A VALID GAMING OPTION Based in Boston, Massachusetts, DraftKings was launched in 2012. Through its daily fantasy sports offering, it has a secured 10 million US cus-
tomer base and built a platform tailored to US sports engagement (live streaming, ticketing, and payments). In 2017, the company obtained USD192 million in revenue. As long as FanDuel (before the merger), with headquarters in New York, has 7 million registered customers across 40 states (1.3 million actives), with over 4 million downloads of its DFS app. Its 2017 revenue was USD124 million. On 2018, both companies (FanDuel is now FanDuel Group, after Paddy Power Betfair’s merger) designed strategies to enter the sports betting business, but the DFS segment has not been abandoned. In fact, DraftKings expects DFS to continue generating most of the company’s revenue for years to come, with state-by-state approvals for sports wagering likely to be slow. ‘Daily Fantasy Sports: Growth Opportunities & Player Strategies 2016-2021’ is a Juniper Research’s report that states DFS consumer spend will hit USD5.4 billion by 2021 from USD2.7 billion in 2016. Other conclusions of the study indicate that total users of DFS services will increase from 5.6 million in 2016 to 10.5 million in 2021, while total gross win will rise from USD242.0 million in 2016 to USD586.7 million in 2021. Juniper forecasts that global average spend on DFS will increase from USD41.7 in 2016 to USD45.1 in 2021. Paddy Power Betfair detailed that it won’t disregard the fantasy sports element of FanDuel’s offering, highlighting the importance of maintaining a key focus on FanDuel’s core business. DraftKings CEO Jason Robbins has the same point of view. He wants DraftKings to focus on technology-driven products such as its DFS offering, which is still growing side by side with sports betting. This executive has insisted that the growth of sports betting in the US will not cannibalize, but complement DFS in the country. However, it’s essential to be prepared. The future for daily fantasy sites will depend on how best they’re able to engage sports gamblers with their various betting options. As the fantasy industry expands to include sports betting, companies expect subscribers to show a growing interest in content across both verticals. OCTOBER 2018
59
US / REPORT
New trends: Skill-based gaming
AN EXCITING AND UNIQUE EXPERIENCE
With the focus on captivating millennials and attracting the attention of traditional slots players, two fresh and innovative startups have been offering ideas and products that are changing casino’s proposals. millennials, who seems to find traditional push-button slots uninteresting. Millenials seek enjoyment through technology, and the gambling industry certainly has the potential to provide this, and therefore to attract and retain them. Casino industry is clearly receiving a massive demand for innovation. To respond to that demand, two companies, GameCo and Gamblit Gaming, have been increasingly creating buzz around their revolutionary products. These young and fresh companies have developed proprietary solutions to reinvigorate slot revenue and attract a new generation of players to the casinos.
GAMECO: THE VIDEO GAMING REVOLUTION
Deal or No Deal (Gamblit Gaming).
D
ue to the fluctuating demographics and the challenges that landbased casinos have faced in attracting millennials to their facilities, casino operators have advocated for the legalization of skill-based games. There is a possibility of integrating skill-based games with games of chance, such that players increase their chances of winning based on their own skills. This enables video games and other skill-based activity to be integrated into casinos. Skill-based slot machines incorporate elements of skill, such as hand-eye coor60
OCTOBER 2018
dination or speed, into games, or could simply be casino versions of puzzle-like games, sports-like games or shooter games. They can be single or multiplayer, and, so far, they have been rolled out at casinos in several US states, including Las Vegas and Atlantic City. The push towards skill-based gaming follows rising fears among casino operators worldwide about the ageing population of their slots players and fears of a looming drop-off in their revenue. The industry sees skill-based, arcade-style games as a way to widen the appeal to
GameCo was founded in New York in 2015, after more than a year of internal development. His CEO and cofounder, Blaine Graboyes, had the vision to understand what the new gaming players needed. GameCo produced the next generation of gaming machines that combine video games and gambling. The company called this a video game gambling machine (VGM). Similar to electronic poker or blackjack but featuring popular video games, GameCo’s arcade-style cabinets utilize a system that balances player skill with proprietary game design to deliver single player games, while maintaining the same house return to players as traditional slot machines. Each VGM features a singleplayer game, generally 60-90 seconds to play, adapted from top console, PC, and mobile. The patented VGM gambling platform allows a player’s skill in
www.revistacasinoperu.com
popular video games to determine the payout and winnings, while maintaining the same casino economics as slot machines. Game genres such as action, adventure, sports, racing, fighting, and casual games will soon be prominent as casinos adapt to GenX and Millennial gamers who grew up playing video games. The VGMs not only appeal to a younger generation, but also provide an engaging and dynamic entertainment experience. After raising funds, receiving the authorizations and licensing rights, obtaining GLI’s certifications under established worldwide GLI-11 standard and spreading the word about its products, GameCo changed history in November 2016 when it became the first skill-based gaming company in the world to debut on casino floors, with the launch of VGMs and its first title, Danger Arena, in Atlantic City at all three Caesars Entertainment properties. Then, more GameCo titles were brought to market: Pharaoh’s Secret Temple and Nothin’ But Net. During 2017, the company debuted as exhibitor at G2E Las Vegas, city where it installed a new office. Currently, GameCo has VGMs in New Jersey, Connecticut, North Carolina and Oklahoma.
GAMBLIT GAMING: UNDERSTANDING YOUNGER PLAYERS In 2010, Eric Meyerhofer and Miles Arnone founded Gamblit Gaming, based in Glendale, California. They had huge experience in the gaming industry and a common company, FutureLogic. Their goal was to develop the first multiplayer interactive game table for land-based casinos. Another main concept was to create skill/chance hybrid games. They spent time and effort, and much trial and error until they got what they wanted. In March 2017, Gamblit finally launched the Model G gaming tables at Caesars’ Planet Hollywood Resort and Casino in Las Vegas. The tables included two games, Gamblit Poker and Cannonbeard’s Treasure. Later, in October 2017, the company introduced TriStation multi-game single-player systems into Las Vegas locations, with the games Into the Dead, Catapult King,
Lucky Words, Match 3volution, Smoothie Blast and Slice of Cake. Throughout 2017 and 2018, Gamblit firmly established in the gaming industry as an innovator of real money and skill gaming, developing and publishing a wide variety of games that bring a casual, arcade sense of fun and skill into the casino market. The company (whose products are licensed by gambling regulators in seven states and as many tribal jurisdictions) also works closely with game developers to ‘gamblify’ and publish their hit games into new markets, tapping into the exciting atmosphere of land-based casinos, activating a broader audience and new revenue stream.
Casino industry is clearly receiving a massive demand for innovation. To respond to that demand, two companies have been creating revolutionary products. That’s why the next step for Gamblit Gaming was to partner with renowned companies like Bandai Namco Entertainment and Endemol Shine Gaming to ‘gamblify’ the iconic arcade Pac-Man and the popular TV show Deal or No Deal, respectively. Also in 2018, Gamblit Gaming installed Model G and TriStation outside Nevada, in resorts across the United States and Canada. The game Deal or No Deal Poker (in the TriStation system) had its world debut in August, at the Route 66 Casino Hotel, New Mexico. While the title Deal or No Deal Poker Special was included on Gamblit’s Model G interactive game tables.
PREPARING THE CASINO OF THE FUTURE All of the previously mentioned products can generate new dollars of gambling revenue from younger demographics that are used to enjoy food and beverage, or attend a music concert in a casino, but not gamble there. Today,
there are millions of target customers for skill-based gaming in land-based casinos. Blaine Graboyes (CEO, GameCo) explained his vision about it: “We want to promote a VIP destination for the next generation of casino customers -‘the video game casino’-, combining the entertainment, engagement, and excitement of video games, eSports, and gambling. GameCo envisions each major casino will eventually have a dedicated section of the casino floor with dozens of VGMs for gamers to gamble playing skill-based video games. Our skill-based VGMs are the natural evolution of the slot machine. We have created a truly state-of-the-art experience, delivering the solution casinos need to engage this key audience.” From his point of view, Eric Meyerhofer (CEO, Gamblit Gaming) said: “After six months of operation, we saw our average player was 36 years old; 22 years younger than the average slots player in Nevada. Additionally, nearly 2/3 of our players were not using player rewards cards, equating the launch of our games to a new, untapped revenue stream for casino operators. With hit games like Jetpack Joyride, Deal or No Deal, Pac-Man and Cut the Rope, the future of skill-gaming is very bright.” With the firm belief that, through new licenses in more territories, amazing products and greater knowledge of the players, the industry will see huge successful skill-based games, both companies, GameCo (booth 5034) and Gamblit Gaming (booth 4423), will deploy their new solutions at next G2E Las Vegas event. GameCo will be launching its latest innovation, the Multiplayer Challenge Mode for the Video Game Gambling Machines (VGMs). It will also exhibit titles such as the Gen 3 version of Nothin’ but Net 2, Steve Aoki’s Neon Dream, T2: Terminator 2 Judgment Day, Cosmic Candy Heist, Poseidon’s Deep Sea Saga and future projects like SoulCalibur II: Casino Edition (fighting game) and The Secret Temple (Match-3 game). While Gamblit Gaming will present games like PacMan Battle Casino for a single-player in the TriStation machine, Deal or No Deal Poker Special and Cut the Rope. OCTOBER 2018
61
US / REPORT
62
OCTOBER 2018
www.revistacasinoperu.com
OCTOBER 2018
63
US / REPORT
64
OCTOBER 2018