Canadian Gaming Business July 2009

Canada's Premier Gaming Industry Magazine

Vol. 4 No. 4

July 2009

Securing a successful gaming future

Inside:

PM 40063056

Server Based Gaming SIGA's Recent Growth Making Security Improvements

Calgary, Alberta, April 26-28, 2010 - www.canadiangamingsummit.com

July 2009

Volume 4 Number 4

Publisher

Paul Murphy

paulm@mediaedge.ca 416-512-8186 ext. 264

Editor

Lucie Grys

lucieg@mediaedge.ca

Advertising Sales

Paul Murphy

paulm@mediaedge.ca

Senior Designer

Annette Carlucci

annettec@mediaedge.ca

Designer

Ian Clarke

ianc@mediaedge.ca

Production Manager

Rachel Selbie

rachels@mediaedge.ca

Circulation Manager

Cindy Youman

circulation@mediaedge.ca

contents 5

Editor’s Note

6

Message from the CGA

8

Canada Versus the World

12 Industry Case Study: Securing a Successful Gaming Future

17 Gaming Trends:

Server-based gaming offers endless opportunities 22

Executive Profile:

George Sweny

24 Operator and Facility Profile:

SIGA’s recent growth

Proudly owned and published by:

28 Gaming Summit highlights President Kevin Brown

President & CEO Bill Rutsey

kevinb@mediaedge.ca

wrutsey@canadiangaming.ca

Vice President, Strategic Development Chuck Nervick

Vice President, Public Affairs Paul Burns

chuckn@mediaedge.ca

pburns@canadiangaming.ca

33 I Gaming: Let’s get on with it

31

Marketing:

Getting things done

32 Horseracing:

Canadian Gaming Business is published five times a year as a joint venture between MediaEdge Communications and The Canadian Gaming Association

An update from out west

34 Finance & Investment:

For advertising information, Contact Paul Murphy 416-512-8186 ext. 264

What happens if….

36 The Association of Gaming Equipment Manufacturers

paulm@mediaedge.ca

For editorial information, Contact Lucie Grys 416-512-8186 ext.301

38

lucieg@mediaedge.ca

Nova Scotia Gaming Corporation: Protection of children not a gamble worth taking

Copyright 2009 Canada Post Canadian Publications Mail Publications Mail Agreement No. 40063056 ISSN 1911-2378 Guest editorials or columns do not necessarily reflect the opinion of Canadian Gaming Business magazine's advisory board or staff. No part of this issue may be reproduced by any mechanical, photographic or electronic process without written permission by the publisher. Subscription rates: Canada $46.30 per year, $82.60 two years. All rates are payable in Canadian Funds only.

Postmaster send address changes to: Canadian Gaming Business Magazine 5255 Yonge Street Suite 1000, Toronto, Ontario M2N 6P4

Canada's Premier Gaming Industry Magazine

Vol. 4 No. 4

July 2009

Securing a successful gaming future

Volume 4 No. 4 on the cover Lyle Hall speaks with gaming executives about how the Canadian gaming industry compares with the rest of the world.

Inside:

PM 40063056

Server Based Gaming SIGA's Recent Growth Making Security Improvements

Calgary, Alberta, April 26-28, 2010 - www.canadiangamingsummit.com

Official Publication of the Canadian Gaming Summit

Canadian Gaming Business | 3

editor'snote

Editorial Advisory Board Howard Blank, Vice President Media & Entertainment / Marketing & Promotions Great Canadian Gaming Corporation Lynn Cassidy, Executive Director Ontario Charitable Gaming Association

Energized by the Summit

Robin Drummond, Vice President Spielo Paula Dyke, Director, Public Affairs and Corporate Communications Atlantic Lottery Corporation Nick Eaves, President and Chief Operating Officer Woodbine Entertainment Group Art Frank, President Niagara Casinos Brian Fraser, Marketing Manager IGT Canada Jordan Gnat, President & Chief Executive Officer Boardwalk Gaming Muriel Grimble, Executive Director Gaming Products & Services Alberta Gaming & Liquor Commission Lyle Hall, Managing Director HLT Advisory Inc. Zane Hansen, President & Chief Executive Officer Saskatchewan Indian Gaming Authority Ron Kelly, Executive Vice President Arrow Games Michael Lipton, Q.C., Past President, International Masters of Gaming Law and Partner, Dickinson Wright LLP Eric Luke Eric R. Luke and Associates Alan Lyman, Senior Regional Director Scientific Games Margaret McGee, Vice-President of Business Innovation Nova Scotia Gaming Corporation Richard Paris, Security Director, Niagara Casinos

On the heels of a very successful Gaming Summit and still reeling from the buzz it stirred, we are pleased to launch the summer issue of Canadian Gaming Business magazine.

This magazine has received a lot of terrific feedback and many people have mentioned that it’s been great to read information that is timely. In this issue, we have included articles based on feedback from industry experts. Lyle Hall moderates a discussion about where the Canadian gaming industry is compared to the rest of the world and invites opinions from some of the top executives in the field.

The Industry Case Study features the recent security and surveillance overhaul at Manitoba Lotteries Corporation and how they centralized their systems to better monitor their properties. In Gaming Trends, we feature a serverbased gaming article which reviews the impact of new technologies on the Canadian marketplace.

George Sweny, who is heading up the Commission of Ontario's Centre of Gaming Excellence, is featured as is the recent expansion of the Saskatchewan Indian Gaming Authority (SIGA).

Chuck Keeling provides an update on the horse racing industry from out west at Fraser Downs. You can also get some advice on how to tackle jobs with more passion and enthusiasm in the marketing article.

Paul Burns of the Canadian Gaming Association offers his opinion on the slow growth of I Gaming.

Gaining perspective on financial forecasting is offered in the Finance & Investment article by KPMG and Marcus Prater, Executive Director of the Association of Gaming Equipment Manufacturers (AEGM) talks about what his organization is doing to make advancements in gaming.

A n d f i n a l l y, M a r i e M u l l a l y, President and CEO of the Nova Scotia Gaming Corporation writes a compelling article about Nova Scotia’s recent initiative to keep children away from online gambling through their successful BetStopper program.

As always, let us know what you think. Please send us an email with your feedback and suggestions.

Enjoy your summer and play it safe.

All the best, Lucie Grys

E-mails to the Editor Policy Canadian Gaming Business welcomes e-mails to the editor. E-mails should include the name of the sender, business or professional affiliation, and city and province of the sender’s office or home. A phone number should be included for contact purposes; the phone number will not be published. We reserve the right to edit e-mails for purposes of brevity and clarity. Please email lucieg@mediaedge.ca

Canadian Gaming Business | 5

messagefromCGA

Self-Exclusion is not “Catch Me If You Can”

By Bill Rutsey, President and CEO of the Canadian Gaming Association

It’s time to seriously question the objectivity of some major Canadian media outlets with regards to their reporting standards. The most recent case in point is their interpretation of self-exclusion programs as “catch me if you can” challenges by problem gamblers to gaming venues – an approach completely at odds with both the opinions and findings of compulsive gambling experts, and jurisprudence around the world.

That organizations such as the Globe and Mail, CTV and the CBC would allow themselves to become shills for class action chasing lawyers without any attempt at research or due diligence on the subject is a sad testament to their objectivity as well as underscoring the need for us to get the facts on the record.

The facts are that: • most experts who have studied the purpose and effectiveness of selfexclusion programs have concluded that the burden for self-exclusion should be on the gambler alone and that any attempt to shift even a portion of the burden to the gaming venue would be unproductive; and • common law jurisdictions around the world (United States, Australia, Great Britain) have concluded that there is no liability for a gaming venue to a self-excluded gambler absent extraordinary conditions.

Self-exclusion was never intended to be a policing program. Its intent is to help people face up to the fact that they have a problem of control with gambling and that they are making a formal decision to discontinue gambling and seek treatment.

Researchers also tell us that self-exclusion 6 | July 2009

is most effective when combined with treatment programs.

Which brings us to another fact not considered in the recent reporting – that Canada allocates more funding than any other jurisdiction in the world on the treatment, education and awareness of problem gambling. This is currently more than $100 million annually (Canadian Gambling Digest, 2007-2008).

This emphasis on education and awareness creates an environment for “informed choice”, what the experts say is the primary tool that allows people to make intelligent, reasoned decisions regarding gambling, or for that matter, any other behaviour.

Don’t get me wrong. I’m not complaining about the media reporting on the issue of problem gambling.

What’s needed is better attention to the facts as they relate to the issue and not simply sensationalized story telling.

As Chair of the Canadian Gaming Summit, I am proud to let you all know that attendance at this year’s Summit was the highest to date – this in the face of the almost unprecedented economic turmoil the North American and world economies are in the midst of.

The recently expanded and refurbished Caesars Windsor proved to be the ideal venue for the event – allowing us for the first time to stage the Summit entirely within the four walls of a single facility. Caesars Windsor CEO Kevin Laforet and his entire staff are to be applauded for working with us to produce the best Summit yet.

I’d like to congratulate and thank our co-host and lead sponsor, Ontario Lottery and Gaming, and especially

CEO Kelly McDougald and Senior Vice President Rob Moore who made it their business to ensure the quality of the entire event.

The Caesars Windsor Summit was the most content rich Summit ever.

Keynote speakers Kelly McDougald and Tim Wilmott set the table for two extremely interesting Executive Panels of gaming equipment manufacturers and gaming property operators. The information and education programs covered every aspect of our industry in great depth.

Manufacturers and suppliers had all the latest products on display – including brand new games on the casino floor for patrons to test drive.

There were great opportunities to get together including the Golf Classic, the opening reception in the Promenade Ballroom and numerous parties and receptions.

Our closing event, the Canadian Gaming Awards Reception and Charity Gala, which raised $5,000 for the United Way of Windsor – Essex County, was a celebration of excellence that formally recognized the contributions of Dave Gadhia, (Gateway Casinos), Art Frank (Niagara Casinos), Paul Newton (Saskatchewan Indian Gaming Authority), Woodbine Entertainment Group and Manitoba Lotteries Corporation.

The success of the Summit really speaks to the depth and breadth of our industry and its ability to continue to function profitably through these times of economic uncertainty – the success that we will be celebrating again next year in Calgary.

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CANAD T

8 | July 2009

DA VERSUS THE WORLD

By Lyle Hall

Gaming is big business in Canada.

Probably bigger than many Canadians realize. The estimated $15.2 billion in total gaming spending in 2009 (including casinos, racinos, video lottery terminals, traditional lottery and pari-mutuel) works out to more than $580 for every Canadian adult.

Like gaming in many other western countries, gaming in Canada is also undergoing significant change. To provide some perspective on Canadian gaming within an international context we assembled four individuals—two American and two Canadians—with considerable industry experience.

Canadian Gaming Business | 9

Paul Micucci formerly with the Ontario Lottery and Gaming Corporation and Magna Entertainment is a Florida-based Canadian involved in several U.S. gaming projects as President and CEO of Gaming Entertainment Management USA.

Art Frank, President of Fallsview Casino Resort and Casino Niagara holds dual Canadian/American citizenship and has a long history in the U.S. gaming industry.

Monique Wilberg is the recently-retired Chief Operating Officer of Gateway Casinos.

A Canadian based in Vancouver, Monique is now active in the burgeoning Chilean casino industry through an involvement with Clairvest Group, a Toronto-based merchant bank with a gaming specialty.

Larry Woolf is President of Navegante Gaming. An American based in Las Vegas, Larry opened the original Casino Niagara and continues to be involved in Canadian gaming through his association with Grey Eagle casino (Alberta) and Casino New Brunswick, currently under construction in Moncton.

The “moderator” for the discussion is Lyle Hall, a Managing Director of Toronto-based HLT Advisory, the principals of which have undertaken a range of gaming assignments in Canada, the United States, the Caribbean, Asia, Africa and Europe.

Hall: Let’s deal with the primary issue facing any business selling a consumer product or service these days, the current economic downturn. What are you experiencing in your geographic area?

Micucci: The gaming that my company is involved with has weathered the current economic downturn because of a focus on local, not destination, markets. Destinations such as Atlantic City are feeling the effects of the economic meltdown to a much greater extent than we are.

Frank: On the border, in Niagara Falls, we have a mixed bag of economic news.

While the general economy is weak and unemployment is over 10% in the region, a softer Canadian Dollar has made it less attractive for Canadians to cross into the USA. Lower gas prices have helped our primary drive-in market. However, I am concerned about the recent run up in both the value of the Canadian dollar and gas prices.......and I am afraid that the tourism market will be hampered by the new US border identification requirements that kicked in June 1st.

Woolf: Surprisingly, the current economic situation hasn't had an impact on our results. A dramatic decrease in high-limit table drop has occurred which has affected table game revenue, but all other revenue areas are up from last year.

10 | July 2009

Wilberg: This is difficult for me to answer - I have been away from the Canadian Gaming space for three or four months. Anecdotally I would say business is soft in BC and Alberta and as we all know recent published statistics for key economic indicators on housing starts, unemployment are very poor for both provinces. I can't see how this would not have a negative impact on gaming revenue.

Hall: There seems to be a significant interest in additional gaming supply in Canada and elsewhere. How much more gaming can be developed here?

Wilberg: In the case of mature markets, development opportunities lay in the calculated re-invention of facilities focusing on the bricks and mortar and the rounding out of the gaming experience.

Any gaming operator’s success will be based on the ability to be responsive to demand and most importantly to position themselves to deliver gaming innovations such as community based on-line gaming linked to progressives.

Woolf: In Canada, there remain a few untapped gaming areas, but in the main, most of the provinces already have several gaming establishments. New Brunswick will have a casino soon and Newfoundland is the only province without a casino.

Frank: Any expansion of gaming must be targeted at areas of business and tourism.

The Ontario market is serving residents well. However, an opportunity exists in downtown Toronto to capture the traveling businessman and the tourist/ convention business. Vancouver could be in the same situation.

Micucci: Considerable growth potential exists in most major and secondary markets in Canada and the United States. In Canada however, provincial governments are facing an ongoing struggle in developing comprehensive gaming strategies that are responsible/ politically sensitive while at the same time offering a business model that maximizes revenue opportunities and provides patrons with desirable gaming products.

Hall: Is sports betting a realistic growth area on which to focus?

Frank: Sports betting would be a new product and would provide a good marketing tool for the border casinos. It would help attract US customers. I do not believe that on-line gaming is the friend of land based casinos that some think. People will choose to stay at home as confidence grows in the on-line product.

Wilberg: Mature markets yet to offer sports betting have an opportunity to penetrate

into an unrealized market-share and most importantly establish in the public’s mind that these facilities are "full-service".

gaming. Entertainment has been a draw for some casinos and is what the gaming customer is looking for at those casinos.

Micucci: The introduction of sport wagering (and the deployment of table games in slot-only facilities) would not only offer programming to compete with online competition but would expand the customer base, reintroduce the facilities to some market segments and grow revenue.

Hall: The Canadian hospitality industry has been hearing for years, true or not, that service staff outside Canada (notably the U.S.) are much more effusive and outgoing than those in Canada. Is the service culture in Canada that different?

Hall: Canadian casinos have tended to focus primarily on the gaming element, with nongaming amenities (e.g., entertainment, hotel, retail) given little attention. Will Canadian casinos need to add a broader array of non-gaming components to stay competitive?

Frank: I disagree. I have been the President of both Casino Rama, an interior casino, and Fallsview Casino/Casino Niagara, a casino on the border. At both locations, I believe the staff has been extremely "trainable" and very courteous. They want to do the right thing. I'll take that, any day.

Wilberg: As the markets mature in Canada, revenue streams, year-overyear revenue growth, market feedback and competitive market analysis will drive the direction of business development. For casinos in western Canada that rely primarily on locals, it is unlikely that we will have the need to develop comprehensive retail offerings for example. For locals, it's all about disposable income and disposable time.

Consolidating entertainment could be a winning hand.

Wilberg: Ah the ever elusive "broughtin, driven staff". Over the past few years I have had the distinct pleasure of working with a Chilean group, the team at Marina Del Sol in Concepcion, Chile.

Comparatively speaking to the customer service experience that Canadians deliver, I would say the customer service experience delivered in Chile is consistently much higher than what we see in Canada. I boil it down to culture; in Chile people hold doors open for each other they greet each other with a smile, a hug and a kiss on the cheek - this is commonplace. What plagues us in Canada, from a gaming operator’s perspective is our failure to compel staff to deliver the most simple, internationally understood and expected customer service standard: eye contact, a smile and hello. In the United States frontline staff put on their performer’s hat, they step behind the table and turn “it” on because it's their job, because they have the ability to increase their compensation everyday they try harder - they are in the unique business of earning tips. Having said that we also must keep in mind that Canadian casinos are primarily locallyfocused - staff sees the same customer time and again. The interaction needs to be adjusted accordingly.

Frank: In Ontario, we have large casinos with all the non-gaming elements. The local casinos have limited non-casino options. I think the model works well.

If you want the "big-time" experience, you have to drive to one of the "bigtime" investments.

Woolf: Service is a by-product of corporate or property culture, training, and the character of the employee(s). If you take Las Vegas as an example, the casinos have spent years establishing their culture and developing training to correspond to that culture.

Woolf: Having other non-gaming amenities, such as a hotel or entertainment venue, could provide a competitive advantage over casinos that only offer

Micucci: Economies of scale have limited the availability of hospitality and service training in Canada compared to the United States. The value of a well-

Micucci: Most Canadian gaming facilities were developed and programmed on last century gaming models but the era of “build it and they will come” is over. Governments, together with industry partners, must treat the industry sector seriously through a new approach to revenue sharing that makes additional sources of investment capital available. Many Canadian gaming venues are tired.

Improvements are required to sustain patronage and to introduce the facilities to new patrons. Zero capital reinvestment is not an option.

trained employee has been sacrificed in the name of meeting bottom line results. We need hospitality and service training to be introduced to a larger segment of staff, not just top line managers. Cuts in training programs will affect gaming over the long term in Canada.

Hall: Finally, what would you identify as the most striking difference between managing a casino in Canada versus elsewhere in the world?

Woolf: Every jurisdiction is different and has its own challenges or advantages. Well established markets and/or operators will tend to have an advantage due to experience.

New developing markets and/or operators will have a learning curve. As for the gaming industry in Canada, it has evolved considerably since the mid 90's.

Micucci: Inherent in the Canadian system is the conflict created with Government being both the operator and regulator, due to interpretation of the Criminal code. In the United States the belief in free enterprise in all forms of business operations, including gaming, has led to more private sector innovation. Canadian attitudes need to change for casino product to become more responsive and vital in the new economy.

Wilberg: Chile is an emerging market which is in my opinion the most exciting space to be in - staff are hungry to learn, business is agile, government and regulators look to genuine honest points of view from all sources from which to formulate their policy, much like early days for most markets in my humble view. Interestingly the biggest difference I have found to date is the level of education of the Chilean workforce. This is a compelling driver for almost every aspect of the business.

Frank: When the government owns the casino, your decision making process must have a much larger picture in mind.

If you are in a cost cutting mode, you must remember the political implications of layoffs. When you are marketing your product, you must keep in mind what the optics of your campaign may mean to the government/owner. I'm not suggesting that private gaming companies do not have a conscious. They do.....and they apply it well. It's just at a different level when the government is also the owner.

Hall: Thanks for taking the time to share your views.

Canadian Gaming Business | 11

industrycasestudy

Securing a Successful Gaming Future

Karl Bergmann, Senior Manager of Security Systems and Dan Sanscartier, Associate Vice President, Corporate Security and Surveillance.

Evolving Integrated Security Approach Helps Manitoba Lotteries Corporation Thrive One of the biggest challenges the security technology industry has faced over the years has been keeping up with enterprise expansion. That is, as businesses grow and evolve, so must the technologies that protect them.

The gaming industry is one of the best examples of this trend. The past two decades saw casino revenues climb and overall operations grow. And as activity grew at those casinos, more technology was needed to protect their people and assets.

Case in point: Manitoba Lotteries Corporation (MLC), which underwent expansion during the 1990s and today is a key player within the Province of Manitoba’s gaming industry.

What makes MLC’s story unique, though, is the foresight the Crown Corporation showed in the 90s to migrate its security system to an integrated platform. MLC 12 | July 2009

accomplished this through an intense market research approach.

Part of that approach includes an annual competitive bid process mandated for MLC vendor selections.

The process involves extensive research and field-testing with experts to determine which vendors and products work best in MLC’s gaming environment to provide the most effective technology available at the most competitive price.

Overseen by MLC Corporate Security, the integrated security system — which protects MLC ’s two casinos, corporate offices and warehouse/office facilities — is not

only keeping visitors and employees safe, but is also helping MLC thrive.

“The primary responsibility of MLC Corporate Security is to protect MLC assets, guests and employees, so we always seek to offer the most comprehensive security measures a v a i l a b l e , ” s a i d D a n S a n s c a r t i e r, associate vice president, Corporate Security & Surveillance. “We take a leading-edge approach to casino security, and this includes ensuring that our security division employs the most effective security measures and tools available.”

MLC ’s net revenue — more than $296 million between 2007 and 2008

industrycasestudy — goes toward supporting provincial programs in areas such as health care, education, and economic development.

In addition to the province’s Video Lottery Terminal Network, MLC owns and operates the Club Regent and McPhillips Street Station Casinos in Winnipeg. MLC’s casinos, corporate offices and warehouses boast a fully integrated security and surveillance system.

Early Integration MLC ’s approach to integrated security can be traced back to 1993, when Club Regent and McPhillips Street Station first opened with nontable gaming, including slot machines, high-stakes bingo and touch-screen gaming. Also during that time, MLC’s Crystal Casino, Canada’s first year-round government operated casino, offered table games and slots, but closed when the two other locations expanded and reopened in 1999 with new table games — as well as a new set of security needs and requirements.

Spread across 182,000 square feet, the Caribbean-themed Club Regent Casino (CRC) grew to feature more than 800 slot machines, 324 bingo/ slots and 32 table games, as well as a walk-through salt-water aquarium, exotic restaurant and lounges, premiere live entertainment, and multi-purpose facilities.

The railroad station-themed McPhillips Street Station reopened as a 178,000 square-foot casino and now offers a similar amount of slot and bingo/slot machines as CRC and 28 table games. The McPhillips Casino features national and international musical acts, exceptional cuisine at Michele’s restaurant, and elegant banquet/event facilities.

Upgrading and standardizing the casinos’ security systems onto one integrated platform enabled MLC to take a more holistic and standardized approach to security. This approach also better accommodated the expansion and better prepared MLC for growth further down the line.

The first part of the project involved upgrading the casinos’ camera matrix system. Following a vendor intensive competitive bid process in 2000,

corporate security selected an analogbased VCR management system, which automated and standardized MLC ’s recording processes. The system gave MLC the ability to more easily monitor and control VCRs to record key processes without losing valuable recording data.

“A l t h o u g h u n s o p h i s t i c a t e d b y today ’s standards, the system was a big advantage for us at the time,” said Karl Bergmann, senior manager, Security Systems. “It was our first step to standardizing on one system, and it put us in a good position when digital started to gain prominence.”

The 2000 upgrade also entailed extending the security system to MLC’s warehouse/shop/office (67,000 square feet) and to its corporate campus offices made up of three buildings encompassing 64,000 square feet near downtown Winnipeg.

MLC also has three warehouse/office buildings totaling 25,000 square feet in Brandon and Morris, towns 120 miles and 60 miles from Winnipeg, respectively.

Digital Improvements The initial 2000 installation led to a digital upgrade in 2004, which ushered in a new era — and technological advancement — for MLC security.

“We needed a very configurable system that we could tailor to fit with our size at the time and, ideally, in the future,” Bergmann said. “We have locations spread across a wide geographic distance with varying security and surveillance requirements. Scalability, flexibility and ease of integration were primary factors in our system choice.”

Central to this implementation was Honeywell’s Enterprise Network Video Recorder (NVR) video management system, configurable digital video technology with the scalability and flexibility MLC sought. The digital system provided myriad benefits to MLC security and surveillance, including enhanced recording quality.

MLC could more easily manage cameras and alarms across its locations, as well as obtain instant access to video recordings and simultaneously view, record and playback video and synchronized audio streams.

Digital surveillance technology has also freed up a significant amount of

time previously spent reviewing tapes, affording operators more time to monitor areas and activity. MLC surveillance technicians are also able to work more efficiently, which provides an even more secure environment for MLC patrons and employees.

“From an operations standpoint, our surveillance technicians can now perform much quicker reviews when a customer needs or loses something, for example,” Sanscartier said. “Reviewing videotapes takes three times as long, so digital has certainly made us more efficient so we can immediately locate footage and pinpoint incidents. And that, in turn, is a win-win for everyone.”

Also helping to improve efficiency at MLC is Honeywell’s VideoBloX matrix system, which MLC installed at Club Regent and McPhillips Street Station as part of the 2004 upgrade. The system is a video and audio matrix switcher that integrates with other technology components, including access control and intrusion alarms, so operators are constantly updated and aware of all casino activity under surveillance. MLC has PTZ fixed cameras throughout its casinos, restaurants, warehouses and corporate offices, which all tie back to the central system to provide an enterprise-wide view of operations.

“The cameras and flexible integration give us extra ‘eyes’ in areas where we don’t always have staff on site 24 hours a day,” Bergmann said. “The digital system enables us to monitor buildings from off site, 24/7.”

MLC’s holistic approach to security also includes components beyond standard video and access to help improve safety and security, according to Bergmann.

The Enterprise NVR system integrates with Honeywell’s IDM (Integrated Data Manager), a system that synchronizes surveillance video with slot and pointof-sale terminals to provide analysis of valuable data. In both casinos, for example, cameras monitor the restaurants and are tied to a POS interface, which pulls transactional data from slots and POS points throughout the locations.

MLC can generate real-time reports from the IDM system, including exception reports, which can quickly identify suspicious activity. The system has helped MLC curb theft. “ We ’ v e b e e n v e r y s u c c e s s f u l controlling theft with the equipment Canadian Gaming Business | 13

industrycasestudy we have,” Sanscartier said. “The IDM interface is yet another beneficial tool that we use to ensure our assets are protected, and it also aids with productivity since we can pinpoint issues immediately and work to resolve them, instead of having to dig through historical data ourselves.”

On-the-Mark Measures While safety and security are top priorities for MLC, non-security-related operations are also influential on business outcomes, including marketing. To help track efforts in this hard-to-measure area, MLC employed a video analytics-enabled solution that determines the number of people entering and exiting a specific area.

Specifically, MLC deployed Honeywell’s People Counter intelligent video analytics technology at entrances and exits at both casinos. The technology uses analytics-enabled cameras that use complex algorithms to count patrons entering and exiting, routing data back to the organization’s central PC server for analysis.

MLC also relies on People Counter ’s reporting abilities. People Counter feeds data into the IDM system, and personnel can then pull valuable information such as trending data to determine the success of specific promotions, for example.

“The statistics we pull from the system help us accurately gauge the success of our marketing activities and ensure

we’re maximizing all of our resources,” Sanscartier said. “For example, we can use the system to determine information as specific as which day of the week would be best for a boxing or musical event that would cater to a specific demographic.”

Once information is in the system, MLC can filter it and tie it to corresponding video and data. “The specificity of the system, enabled by the tight integration, further empowers our surveillance team and auditors to carry out their duties with extreme due diligence,” Sanscartier said.

That same due diligence also carries over to audit-related activities. MLC follows strict audit specifications set by gaming standards and by gaming commission regulators, which includes regular reviews both internally and from external reviewers. MLC undergoes a security system-wide audit on an annual basis. Based on the recommendations that result from the audit, MLC makes necessary adjustments to meet the requirements.

Upgrading to a digital-based system has helped it more easily meet compliance standards — and make necessary adjustments more quickly and easily, as well. If one of the casinos changes its floor plan even slightly — moving a slot machine from one area to another, for example — the changes can affect the necessary configuration of the casino’s cameras. With a flexible system, making those camera moves is simple, according to Bergmann.

“Just moving a couple of slot machines can affect where several cameras need to be, based on regulations specific to standards associated with slot machines,” Bergmann said. “With a flexible and robust system, though, making the necessary adjustments is quick and easy, which also translates into a smoother and faster audit process. Since we made the move to an integrated, digital system, it has enhanced all surveillance operations.”

Securing a Successful Future With the current success of its security approach, MLC continues to look ahead to how and what it can add, update or do differently when it comes to its integrated security system. Currently in the works are measures to centralize all security operations and locations on a single front-end to further enhance operational efficiencies — a move made possible in part by its digital foundation. The centralization project reflects MLC’s approach to ensuring it’s always doing what it can to remain competitive with the utmost integrity.

“We’re able to maintain a dynamic security system because we’re always seeking the newest and most cutting-edge technology and asking what we can do differently and better,” Sanscartier said. “This requires maintaining our base so we always ensure new technological additions are compatible with our core system, while also looking for a new edge that will help us to continue advancing forward.”

For MLC, both its current state and future plans all point toward time and cost efficiencies that enable better security.

“Any time our staff gains efficiencies, whether it’s through reporting, monitoring or locating a specific event, the payoff is exponential,” Sanscartier said. “As a result, they’re able to do their jobs better and conduct all the activities we’re concerned with — guests, employees and asset protection.”

14 | July 2009

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In the planning stages for many years, server-based gaming is now readily visible on the horizon.

Sure to change the way gaming is viewed, the technology is connected to a central computer system and is all about machines talking to databases on back-room servers. What this means is that server-based slot machines on the casino floor can have different games downloaded into them at any time, giving slot managers the ability to change games, denominations, bonus payouts and promotions—on the spot—in reaction to casino occupation numbers.

16 | July 2009

Server-Based Gaming

gamingtrends

Offers Endless Possibilities

By Lisa Kopochinski

Canadian Gaming Business recently sat down with gaming industry experts Bruce Rowe, senior vice president, strategy and business development for Bally Technologies, Inc.; Don Doucet, Spielo vice president of business strategy, products and marketing, who also represents GTECH/Spielo as a voting member on the Gaming Standards Association’s board of directors; Mark Pace, vice president of network gaming engineering and operation for WMS; Eric Lancaster, manager of product development for sbX at IGT; and Jamal Azzam, director of product management and downloadable and server-based gaming for Aristocrat to discuss serverbased games, what they offer and their plans to launch this latest technology into the Canadian marketplace Canadian Gaming Business: There have been a number of server-based gaming tests in American casinos for server-based games. What stage is your company at with offering server-based technology?

Bally: Bally is at the forefront of serverbased gaming, and has been actively involved in developing customer-driven server-based systems for the past several years. Our server-based solutions suite gives gaming operators the widest choice of options to protect current investments, while migrating to the networked floor of the future.

There are four key capabilities needed to deliver the value from server-based systems— delivery, display, measurement, and integration.

Delivery is done with Download Configuration Manager™, which allows casino operators to interrogate games to understand the components and software versions of the game; schedule downloads

of marketing content, peripherals and game software; and conduct dynamic revenue management of GSA/G2S (game to system)-enabled games from a central location. This product is at multiple sights driving iVIEW and revenue-management applications and continues to develop based on customer and engineering input.

Display comes from our suite of iVIEW products and the most exciting is Display Manager (DM), which lets the operator control the game display and touch screen to turn the game into an interactive kiosk for customers and employees. Using standard protocols, virtually any game, from any manufacturer, new or old, can be made to work with this product in days!

And, this product is already in the field on multiple manufacturers’ games, giving our customers a new window into gaming.

Measurement comes from a tight i n t e g r a t i o n o f o u r s e r v e r- b a s e d systems to our business intelligence tool. This tool was specially designed to give both venue and distributed gaming operators the radar they need to see how the dynamic power of server-based systems are creating value for their businesses, and this is also installed and available today.

Last, but not least, is the team and experience we have developed running over 200 Ethernet floors, and the years of experience making new and emerging technology coexist with expensive and valuable legacy products. In our migration to server-based systems, we have learned that this is where doing a system install or upgrade almost daily lets our learning help our customers.

GTECH/Spielo: Spielo began almost 20 years ago by focusing on distributed gaming market solutions, also known as video lottery terminals (VLTs). This

market has been an early adopter of serverbased gaming (SBG) because of the nature of its terminal distribution. Spielo’s products and technology have anticipated and met the industry’s needs at each step in the market’s gradual maturation.

Government VLT programs usually comprise clusters of a few electronic gaming machines (EGMs) in bars or restaurants, in thousands of individual locations spread out over large geographic areas. In this market, game switching can be extremely labourintensive, time-consuming and expensive.

Distributed market games are also offered in a multi-game format as a way of satisfying many players’ needs on a single machine.

Operators need suppliers with the flexibility and responsiveness to tailor game sets to their needs.

For the last 10 years, Spielo has offered downloadable game content and remote game switching solutions to our distributed market customers to help alleviate the time and costs associated with game refreshment, upgrades and shifts in player demographics.

However, this was typically done through proprietary protocols, because no publicdomain protocols offered all of the functionality that the market required.

With the advent of open architecture and the creation of the Gaming Standards Association, Spielo has embraced the movement toward open-industry standards.

Now, GTECH/Spielo is proud to be the first to file distributed gaming-market extensions and new classes to GSA’s open-standards protocol. We are actively upholding standards initiatives to ensure the G2S protocol is comprehensive and supports all gaming environments. GTECH is a platinum member of the GSA, and GTECH/Spielo has active technical representation on the G2S, S2S, and Canadian Gaming Business | 17

gamingtrends transport technical committees to meet and anticipate our customers’ specific needs.

The proof is in our comprehensive product alignment. Spielo’s end-to-end solutions are ready for network gaming and are designed to operate under GSA protocols— from INTELLIGEN™, our distributed market standards-based central system, to our value-added, advanced terminals, to proven games.

Spielo has broken new ground in distributed and venue-based environments with the INTELLIGEN™ central video system. To maximize the benefits of SBG and open standards, INTELLIGEN™ features three primary value-added modules that integrate with its core functionality: Dynamic Game Management allows downloads of games, game sets, or game patches, as well as firmware updates. It allows scheduled downloads from server to EGMs in the field any time, and also enables centralized game switching.

Proactive Diagnostics offers advance notification to lottery operators about malfunction trends in the field, as well as real-time end-to-end network monitoring for faults.

Advanced reporting offers quick, graphical reports and dashboards, and business performance trend analysis on demand.

The WinWave Vu™, created for the distributed market and operated on the powerful sensys™ platform, is a completely downloadable solution featuring digital top glass and our award-winning digital button board with full-color capability.

While our core business is in the distributed market, Spielo also applies its experience and expertise in both video technology and server-based gaming to the commercial casino sector. Our prodiGi™ terminal, and our latest generation commercial EGM, the prodiGi Vu™ terminal, have been engineered to integrate with server-based solutions and downloadable gaming.

Its powerful sensys platform offers full graphic and expansion capability, and supports digital glass and an awardwinning full-color digital button board perfectly suited for downloadable content and network gaming.

WMS: WMS has taken an approach to server-based or system-supported technology— collectively networked

gaming (NG)—that is very different from those of other vendors. We never believed that NG would be widely adopted and implemented as quickly and aggressively as others. In fact, we believed that operators would need tangible proof that NG could actually represent a positive return on investment (ROI) before investing in this new technology.

While most vendors focused on remote configuration and download (RCD), we believed that this basic capability did not provide enough economic benefit, either in terms of revenue generation or cost savings, to justify the expense of implementing NG. This hypothesis was proven throughout installations in California, Las Vegas and Connecticut, where our RCD application has been approved and deployed for 26, 13 and nine months respectively.

Therefore in addition to RCD, we focused on developing gaming applications using NG capabilities as a means to increase revenues and provide for a positive ROI. We introduced the first NG application almost three years ago in the form of Monopoly Big Event.

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gamingtrends The Big Event bonus games, which are common to all players, operate on a server separate from the base games.

That server has its own random number generator and is connected to the base games over a network using Ethernet cable. Effectively, [it is] a network comprised of a server and electronic gaming machines.

This first implementation of a NG application was wildly successful.

We followed up this concept with a second even more ambitious NG applicationâ&#x20AC;&#x201D;Star Trek.

Star Trek awards patrons medals, which represent progress through the game.

When done playing, the patron may create a profile (user name and password) so that their medal count can be saved on a server located in one of WMSâ&#x20AC;&#x2122; gaming operations centers in Reno, Nevada.

When the patron next logs on at any Star Trek game, in any North American casino, they will continue their game exactly where they left off. This persistentstate gaming concept leverages a network comprised of a server and electronicgaming machines in casinos distributed across North America.

These two NG applications have generated significant revenues, while simultaneously minimizing the cost associated with implementing this technology. Via this bank-by-bank approach to NG, WMS has proven that NG can, in fact, generate a positive ROI. Our plans are to continue to leverage the capabilities that NG presents to develop extraordinarily innovative and gaming experience enhancing products.

Aristocrat: Aristocrat was the first gaming company in North America to implement a live commercial test of its proprietary downloadable technology in a casino environment in Southern California in 2006. Since then, Aristocrat has been working on networked gaming on two fronts. First is the development of user-friendly Floor Managerâ&#x201E;˘ based on GSA protocols; the Floor Manager enables operators to control multiple manufacturersâ&#x20AC;&#x2122; G2S compliant devices across the casino. This tool delivers such efficiencies as game download, EGM configurations and peripheral management. Because these tasks will be managed from a central pointâ&#x20AC;&#x201D;the

serverâ&#x20AC;&#x201D;it will result in reduced labor cost, yield management and increased response to customer demands. The Floor Manager tool is the result of countless hours of market research, consultation with operators and the advice of expert user interface designers, which shaped the design and development of this productâ&#x20AC;&#x2122;s easy-to-navigate user interface. Second is the development of a true server-based solution to control smart clients for the casino and video lottery markets (VLT).

The TruServâ&#x201E;˘ solution creates an open gaming environment where content from multiple providers can be played on gaming machines. What is remarkable about TruServ is that it has a place in all gaming venues from casinos, to route, to video lottery. It can even push content to other devices. Additionally, TruServ collects massive amounts of data and stores it in a single location opening the door for future capabilities such as ad-hoc tournaments and competition. The TruServ system has recently gained Gaming Labs International (GLI) certification for Macau, making it the first client server-based gaming system to be approved under GLI-21 and GLI-11 for casino gaming in the world.

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IGT: IGT currently offers several server-based solutions that are for sale today to meet the needs of the individual operator. sbX™ Floor Manager is the industry’s first GSA G2S-compliant game management solution. sbX™ Floor Manager revolutionizes the game theme conversion process by allowing operators to change and configure games in real time with no machine downtime— driving customer loyalty and decreasing associated operational costs. sbX™ Floor Manager is for sale today for floor-wide deployment or as part of the sbX™ Tier One package.

The sbX™ Tier One package is designed to provide a partialfloor G2S game-management solution without the expense of a floor-wide conversion. The Tier One package combines sbX™ Floor Manager with the flexibility of IGT’s AVP® models and access to the IGT game library. This package is an all-inclusive, lowrisk, lease-based bundle that comes with consultation from IGT Professional Services. The IGT game library is the industry’s largest GSA-compliant library. New themes are added to the game library each month and delivered as part of the package. sbX™ Media Manager is also for sale today for floor-wide deployment or partial-floor implementations. sbX™ Media Manager gives operators the power to instantly deliver fresh, customizedbranded messages and services to players on the game screen via the Service Window or at the game via sb NexGen® displays. This solution means that secondary displays and associated expenses are no longer needed in modern G2S games, and that operators can instantly refresh media displays with timely marketing messages that target the right players at the right time. sbX™ Media Manager also offers a GSA-compliant interface, giving operators the power to deliver third-party applications that give players the ability to order drinks or perform other traditional services right at the game.

Our server-based solutions have been in various stages of testing since 2005. We currently have active sbX™ Floor Manager pilot locations in California, Missouri, Nevada and Michigan, and will be implementing sbX™ Media Manager field trials and pilots this summer in preparation for Aria’s opening at CityCenter in Las Vegas.

Progress will not stop there. IGT will continue leading the industry through change with smart solutions for our customers, now and in the future. IGT’s vision in The Power of Open will continue to drive industry innovation and practical solutions in bringing new technologies to market.

CGB: How does the Canadian marketplace play into your company’s plans to launch server-based gaming technology?

Bally: Canada has been, and will be, a very important market for Bally, but even more so for our server-based systems solutions.

There are several key reasons for this.

Because we are the most experienced system company with the broadest choice of enterprise-architected solutions, we can meet the needs of distributed games and venue-based facilities of any size. Further, we have been developing several products related to responsible gaming that are uniquely suited for the Canadian marketplace. These are built to solve several key issues related to privacy and a guaranteed system for self-exclusion. And, this solution can run on anything from a dial-up network found in distributed gaming to full-blown Ethernet floors.

Our DM solution has also been designed to work with the oldest, most profitable games in Canada to the newest games from any vendor, and is the tool for delivering responsible gaming messages, driven by our CoolSign media management product. It is also the place where players access our time and money-management application for responsible gaming.

We have years of experience in multi-protocol environments and

gamingtrends are well on the way to a solution to allow a smooth and mindful migration from legacy protocols to the new GSA protocols that Canada has embraced, and as a charter and continuous member of GSA since its inception, we welcome this support with open arms.

Canada is not one market, not one operator, and not one set of identical business opportunities or challenges. We, at Bally, look forward to bringing Canada the breadth of experience and products that comprise our server-based systems solutions to drive value for both operators and players.

WMS: WMS views Canada as a critically important portion of the North American market and a key market for NG products.

Big Event and Star Trek have been approved and deployed in the Canadian market and are enjoying similar levels of success as in the states.

We appreciate some of the unique challenges that are faced by operators in the Canadian provinces and work closely with them to ensure our applications/solutions meet their needs.

As a result of this understanding and the strong relationships we have developed, we recently implemented our RCD application in a Canadian province’s test facility. This was a significant first step and we are looking forward to deploying the application in a live capacity in the near future.

We are very supportive of the Canadian Networked Gaming Committee and applaud their efforts in seeking to create standards across all the provinces, as well as their strong participation in the Gaming Standards Association. We believe that their participation is going to not only serve to strengthen GSA, but also further bring to focus those differences that exist in Canada and which the industry must better address.

GTECH/Spielo: The Spielo terminals now in the field are fully downloadable. As our distributed market clients upgrade their central systems, our products are ready to integrate with their networks. While commercial casino clients are just now entering the test phase, Spielo is already poised with terminals and game content that will help our clients easily adapt to, and profit from, SBG technology.

A Touch of Innovation

Aristocrat: Aristocrat considers all gaming markets strategically important and the Canadian market is no exception. We frequently solicit feedback from gaming operators and use this feedback to shape our products. Additionally, we communicate with the regulatory bodies and often seek their guidance as related to new technologies.

Such feedback from operators ensures that our product contains the features desired by the operators, which in return will provide the benefits sought after for the operators and players. The guidance we receive from the regulatory bodies ensures the Aristocrat products meet regulations to ensure compliance.

IGT: The Canadian marketplace is a part of IGT’s strategy to launch server-based technologies. IGT is currently in discussions with casinos across Canada regarding our server-based solution— sbX™.

So far, interest levels in sbX™ from Canadian operators have been extremely high and we continue to work with operators on bringing our solution to the Canadian marketplace.

IGT is globally positioned to deliver a fully functioning G2S server-based solution outside of the US. The sbX™ solutions we’re developing are not prototypes or vaporware; these products are real and are available for sale today. Our sbX™ solution is all about enhancing the experience for the player and the user. We believe that has been validated by the level of interest we have received from operators in Canada and around the world.

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Canadian Gaming Business | 21

executiveprofile

George Sweny By sam white

The Alcohol and Gaming Commission of Ontario’s George Sweny has worked across Canada in both the private and public sectors, in the gaming business for 30 years. As an executive with the former Ontario Lottery Corporation in the 1990s, Sweny led the lottery business operations, and its planned expansion into the Casino and racetrack slot business. Sweny then joined the private sector as an Executive Vice-President of Len Stuart and Associates where he managed government relations and regulatory affairs for a number of Mr. Stuarts enterprises in Canada and the USA.

22 | July 2009

executiveprofile

In 2003, Sweny moved to British Columbia, where he played a key role with the British Columbia Lottery Corporation transforming the traditional bingo business to the renown Community Gaming Centre model which marries the best of the casino business and enhanced hospitality, with electronic bingo. In 2004, Sweny rejoined the gaming business in Ontario as SVP of Lottery and Bingo with the Ontario Lottery and Gaming Corporation. In that role, he led efforts to reengineer the lottery business to address recommendations tabled by the Ontario Ombudsman in 2007 that focused on integrity and public interest issues.

“I’ve basically grown up in the gaming business,” Sweny says. “When I started, it was a fledgling industry. The former Ontario Lottery Corporation was just starting out.”. Now he stands as a leading expert in an industry subject to constant technological and regulatory change. As gaming in Ontario continues to evolve and new regulatory and operational requirements arise, the need to standardize business across approximately 10,000 Ontario Lottery and Gaming corporation retailers will continue to be a challenge . “We see approximately one billion transactions in a year in Ontario.

Each transaction has to be protected, to achieve the highest integrity possible for the consumer” says Sweny.

Sweny has now taken on a new role as the leader of the Alcohol and Gaming Commission of Ontario’s newlyestablished Centre of Gaming Excellence. The Centre’s mandate is to shed light on the best methodologies from around the world for augmenting the business side of gaming with strategic considerations pertaining to integrity, honesty, public interest and social responsibility. Its mission encompasses the entire gamut of the Commission’s gaming portfolio which includes lotteries, casinos and charitable gaming in Ontario.

The new organization’s activities focus on research and development, as well as developing strategic recommendations to inform the work of the Commission. It looks at regulatory practices in other jurisdictions in Canada and beyond and sees how they can be applied to the field of gaming in Ontario.

The AGCO will “take stock of the lessons learned in other jurisdictions to reflect on what makes sense in the Ontario context given the public policy environment, structure of the gaming business, and enforcement standards in this province” says Sweny. “Each jurisdiction is different, but there are some common themes and issues that make for new and interesting possibilities”. Because the Centre’s role will not include operational implementation, it can dedicate itself to developing a best-in-class knowledge base of existing gaming regulations and propose strategic solutions in an industry with multiple interests and public policy goals.

One of the early priorities for the Centre will be to ensure the concerns, raised within the Ontario Ombudsman’s report in March 2007, have been addressed as effectively as possible.

The report recommended an independent regulatory scheme, administered by a body independent of the Ontario Lottery and Gaming Corporation. As an experienced executive with a broad view of gaming, Sweny proved to be an ideal figure to research and recommend new regulations. “A whole bunch of risks were identified in that report,” says Sweny. “This

organization [the AGCO] was given the authority to regulate lotteries within a very tight timeframe,” he adds. “It’s now timely to step back, assess what has been put in place in its entirety, and identify where adjustments could be made to further strengthen the regulatory model” Sweny has been leading the Centre for Excellence since this past winter. He works with a small staff and has sought insight from experts in risk analysis, internal auditors and external consultants.

Self-exclusion is also on Sweny’s workplan for the Centre, in addition to risk-analysis following the Ontario Ombudsman’s report. Self-exclusion refers to gamblers’ desire to voluntarily ban themselves from gaming premises.

The Ontario Lottery and Gaming Corporation has had selfexclusion programs in place for quite a while and is currently leveraging new technologies to evolve that program from its traditional paper-based tenets. This continues to be an area where lawsuits arise, a recent one being the proposed -- yet to be certified -- class action lawsuit on behalf of problem gamblers who assert that Ontario’s self-exclusion program fell short of expectations. Because self-exclusion is top of mind from a public interest perspective, Sweny says that the Centre for Excellence is doing a broad scan of self-exclusion programs around the world to better understand best practices, and the potential merits of a more activist regulator role.

Sam White is freelancer writer based in Toronto.

Canadian Gaming Business | 23

operatorandfacilityprofile

SIGA’s Recent Growth

By Andrew Coppolino

There are a couple of essential touchstones that the Saskatchewan Indian Gaming Authority (SIGA) looks to as its gaming operations evolve and develop: pride of ownership and the principles espoused by the Federation of Saskatchewan Indian Nations (FSIN).

The touchstones have helped guide the quick expansion of the corporation in just a few years as they endeavour to build modern gaming facilities, yet ones imbued with a sense of the First Nations culture and the local communities and 24 | July 2009

environments in which they are found.

In 1995, and with the First Nations Gaming Act, FSIN incorporated SIGA as a non-profit company to develop and operate on-reserve casinos. There are 74 First Nations in Saskatchewan with

ownership represented through 10 tribal councils, and with FISN as the central treaty rights and legislative body.

SIGA currently distributes 50 percent of its profits to Saskatchewan’s First Nations, 25 percent to the province’s coffers,

operatorandfacilityprofile

and 25 percent to the Community Development Corporation, which in turn sees money allotted to charitable and not-for-profit organizations.

Elders’ Teaching Shapes Corporate Values Given its recent—and rapid—growth, SIGA’s touchstones have been busy at work. Today, the corporation has more than 1800 slot machines, 52 live table games, and a wide range of food and beverage services to serve its customers. Each of its facilities has live entertainment stages, which further

enhance what SIGA can offer its clientele.

The six properties, the gaming equipment, and the employees are at the heart of what is among the corporation’s key goals for future business success: to double its economic benefit to FISN and reach a 75 percent First Nations workforce by 2014.

In tackling all of this, SIGA relies on five guiding principles based on the teachings of First Nations elders in order to “shape our corporate values and how we relate to employees, customers,

and the communities they live and operate within,” according Zane Hansen, SIGA president and CEO. The principle of Tâpwêwin refers to speaking with precision and accuracy and conducting business with integrity and honour. Pimâcihowin stresses a nurturing a holistic approach to improving the quality of life for First Nations people.

Miyo-wîcêhtowin alludes to First Nations’ traditions and customs which can result in good customer relations.

Wîtaskêwin translates into a sense of sharing resources and giving back to the Canadian Gaming Business | 25

gamingtrends communities where SIGA properties exist, and finally, Miskâsowin conveys a sense of pride in First Nations’ heritage.

As they promote and foster economic development for Saskatchewan First Nations, tribal councils partake in SIGA’s capital developments making investments in properties and acting as landlords.

Human Resource Development as Properties Grow Fully owned by Saskatchewan First Nations, SIGA seeks to develop the gaming industry to create employment opportunities for the First Nations’ people and use the gaming industry as a means to support economic development and generate financial returns back to their communities.

“An immediate focus for us has been to re-invest back into our employees to ensure their development,” said Hansen, who has been SIGA president and CEO for three years.

Though there are now six properties across Saskatchewan in their portfolio, three of the facilities—Dakota Dunes, Living Sky, and Painted Hand— represent about $125 million in on-reserve capital investment and have created about 800 new jobs.

Starting with four properties across Saskatchewan in 1996, SIGA’s humble beginnings, as Hansen describes them, flourished in their first decade.

At 39,000 sq-ft., Gold Eagle Casino, on Yellowhead Highway in North Battleford, features 260 slot machines, and 10 live table games, while Northern Lights Casino has 450 slots and 11 live table games over its 42,000 sq-ft. in Prince Albert.

Moose Mountain Provincial Park in southeast Saskatchewan is home to Bear Claw Casino and its 30,000 sq-ft. for 120 slot machines and four live table games. Yorkton’s Painted Hand Casino has recently been reborn with 43,000 sq-ft. and 200 slots.

Strong Business Model with First Nation’s Traditions As Hansen points out, their business model and governance practices have gained for SIGA recognition from the Conference Board of Canada but as well a successful operational and financial track record where by 2006 it was able to secure capital financing to expand into new markets and re-invest in existing properties.

26 | July 2009

Three million guests entertained annually at SIGA casinos would likely corroborate the conference board’s approval.

“We are currently experiencing our most significant growth and expansion curve in the history of our company.

Our fifth market, Dakota Dunes in Saskatoon, opened in August 2007 and Living Sky in December 2008 in Swift Current in southwest Saskatchewan,” said Hansen.

The company’s first market redevelopment—a brand new facility— was Painted Hand in Yorkton, which opened in March 2009.

The $60 million, 80,000 sq-ft.

D a k o t a D u n e s , S I G A’ s l a r g e s t property, is located on the Whitecap Dakota First Nation, 20 kilometres south of Saskatoon.

“As we do with all our projects, we consult on a design direction at the start of the project with tribal council elders to ask how we could a p p r o p r i a t e l y r e f l e c t o u r Fi r s t Nations tradition and culture. That is then blended with the key resource elements of the region,” he said.

The Dakota Dunes facility is built amidst geologically unique sand dune formations of the Whitecap First Nation in the South Saskatchewan river valley basin, 25 kilometres south of Saskatoon.

In fact, in 2008 the property, staffed by 500 employees, was selected as a finalist in best casino design at the National Gaming Conference in Las Vegas. The principle of pride of ownership, therefore, comes into play, according to Hansen.

In their first community partnership, SIGA’s sixth property, Living Sky Casino, a $36 million development in Swift Current, the corporation consulted closely with File Hills Qu’Appelle tribal council. “We did consultations with them on design directions and the overall look of the facility and what was to be featured in it,” Hansen added.

Not only does Living Sky offer 225 slots over its 50,000 sq-ft. floor, but Hansen notes it has partnered with other organizations in the local community.

“A key feature that we have been working on with all our new properties is to broaden the business model to expand the entertainment venue. In partnership with the local performing arts community, our entertainment

venue is actually a full-scale performing arts centre with a 50-ft. fly tower with computerized cable drops and moveable theatre seating for 600.”

Surveys recently undertaken by SIGA have shown them that the communities in which casinos are located are quite proud of facilities such as these—again, that pride of ownership—and especially so the entertainment value they offer.

The quantitative research is supported by impressive qualitative events, including an appearance by Cirque du Soleil which has boosted considerably the quality and scale of what they offer. “When we opened, we brought Wayne Newton from Las Vegas.

It was a huge event, and I believe one of his few Canadian dates,” noted Hansen.

Back in November 1996, renovations to an old grocery store saw the evolution of Painted Hand Casino. But now a $30 million re-investment in the market has resulted in a brand new building. Situated in the city’s recreation area, Painted Hand (a partnership with Yorkton tribal council) boasts 225 slots, 43,000 sq-ft., and 240 employees. “It’s a testament to a solid business model and the development that that can lead to,” Hansen said of the good reviews that Painted Hand has garnered, both from visitors and employees.

Pride of Ownership Wi t h a c o r e p u r p o s e o f c r e a t i n g opportunities, apparent in those 800 new jobs among the three facilities, SIGA employs more than 2100 people, 65 percent of whom are First Nation members.

It is with a sense of pride that Hansen describes the company as a “portal” to the workplace and first-time employment for many people. Hansen notes that SIGA does considerable human resources support work in preparing applicants for the workplace: the result has been high employment satisfaction and low turnover rates. “We offer a very competitive compensation and benefits program on par with other companies. In addition to that, we tailor a lot of employee health and wellness support programs and services that foster a positive workplace environment. As a developmental employer, we will always keep a focus on generating opportunity and making a higher than average investment in learning and development, he notes.

Andrew Coppolino, andrew@tablescraps.ca, is a freelance writer based in Kitchener, Ont.

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By David Bellerive

So the Canadian Gaming Conference is over, it’s a few months later and you might be asking yourself, what did I learn? Did I put any of the ideas I liked into action?

I confess, I end up with a lot of ideas that never become reality. It’s common among the creative industry, but I don’t think it’s unique to the creative industry. So when I heard about a conference on getting things done, I signed up right away. Which, it turns out, is one of the best ways to get things done. (More on that in a minute.)

The two day conference was called The 99% Conference, from Edison’s quote that “Genius is 1% inspiration, 99% perspiration.” It featured a dozen 20-minute presentations focused on productivity and the doing part of ideas.

Is an economic downturn the time to try new ideas? Scott Belsky, founder of Behance the conference sponsor suggested that the downturn is an ideal time for new ideas. The payoff could be big, and “the risk is kind of low. And if the idea doesn’t pan out, it won’t necessarily make your situation worse.”

But how do you get those new ideas to flourish. Well, first you have to ask yourself is this idea any good. Take a long hard look at the idea before investing too much time. Ideas are everywhere, and not all of them are worth pursuing.

But for those that are worth it, here are a few common themes from the conference.

Passion You need passion to fuel ideas. It’s contagious, so if you have it, others will too. If you need it, or want to fan the passion flame, hang around people who are passionate about things. Their enthusiasm will rub off on you. Whom you hang out with really matters. You can see this in our industry, hang around card players and you start to love cards. Hang around slot players and you share their excitement.

Share your ideas and listen to other people’s Often people don’t share their ideas liberally because they’re scared other people will either steal them or criticize them. Many speakers emphasized the importance of sharing ideas, and the need to do so quickly — because debate helps you decide which are likely to gain traction.

Talking about your ideas will also increase the chances you’ll see them through since you’ll feel accountable to the people you’ve shared them with.

Don’t avoid the obvious There really aren’t that many new ideas.

Mostly there are just improved versions of old ideas. It’s not where the idea came from, it’s what you do with it. For instance, a few years ago when poker

was hot, BCLC used the opportunity to introduce women to poker, by hosting a charity event to aid breast cancer research.

The idea of a poker tournament isn’t new. In fact, neither is the idea of a cancer fundraiser – but together they were original and successful.

Work hard Nothing can beat hard work. It’s a quality we all admire. If you really want that idea to get off the ground, work it! Hard work makes up for a lot of shortcomings.

Do something Perhaps the most enlightening for me, was the simple direction to do something. Too often people come up with a million reasons not to take the first step on an idea. Want to learn guitar? It may seem hard or even impossible, but the first step is phoning a guitar teacher and booking a lesson. That’s not hard. Neither is the next step, showing up for the lesson. Keep doing something that moves you toward your goal and before you know it, you’re playing guitar.

So whether it’s a new promotion, a new initiative, or simply a new way to communicate with your players, take the first step.

Good luck with your ideas!

Canadian Gaming Business | 31

horseracing

An Update from Out West

By Chuck Keeling

The horse racing industry in British Columbia is ‘holding its own’ in today’s uncertain economic climate, and management at both Fraser Downs and Hastings Racecourse are taking an optimistic approach towards the future. tracks is devoted to supporting racing and breeding programs.

“Fraser Downs is the first race track in Canada to be recognized as a fullfledged casino and only the second track in Canada to offer table games,” Keeling said. “Hastings is a developing product in a competitive market, but it is showing encouraging growth since its permanent, 600-slot gaming floor opened last August.”

Another encouraging vehicle of growth in the province has been the development of ‘Racebooks’ in 22 locations throughout the province. These Racebooks offer offtrack simulcast wagering, and are operated

by The Betting Company (“TBC”), which also manages all phone and Internet parimutuel wagering in British Columbia.

Proceeds of this growing form of gaming are spread among various partners, including both Hastings and Fraser “We built an extra 50 stalls to accommodate 600 horses,” said Chuck Keeling, general manager of the harness racing complex at Fraser Downs in Surrey, B.C. “That’s something we’ve never done in the past. There has been a serious demand to race and while we don’t want to be the benefactor of others’ misfortunes, the influx of horses from Alberta has certainly increased our entertainment value.”

Hastings R acecourse, home of the thoroughbreds, has also enjoyed a positive impact from the arrival of several Albertans. “We’re excited about having Danny Dion, the leading owner in Canada, racing his horses at Hastings,” said general manager Raj Mutti. Dion, owner of Bears Stable, 32 | July 2009

and trainer Dale Greenwood shipped 25 horses to Hastings in April. Dion won Sovereign Awards in 2008 for both Outstanding Owner and the Canadian Horse of the Year, sprinter Fatal Bullet.

With horses also arriving from Washington and California, Mutti noted that the barn area at Hastings was filled prior to the start of the 76-day racing season. 923 horses are currently on the grounds, an increase from 850 a year ago. “It gives us the opportunity to improve our quality of top-end horses,” Mutti said. “That’s been our long-range goal.”

Great Canadian Gaming Corporation (“GCGC”) owns Hastings Racecourse and Fraser Downs. A portion of the slot machine revenue produced at both

Downs, the Horsemen’s Benevolent and Protective Association, the British Columbia Standardbred Association and the horse people themselves.

Chuck Keeling is the General Manager at Fraser Downs.

igaming

Let’s Get on With It

By Paul Burns

Our current position is no longer sustainable…

While still relatively small comparable to other gaming products in Canada, Internet gaming needs to become the centre of discussion very soon.

When asked the question, “is Internet gaming legal in Canada?” the answer I give is, “yes and no” or I reply by asking, “Are you a bettor or operator?” This is closely followed by them shrugging their shoulders which leads me to ask, “Have you got a few minutes? I’ll explain.”

Canadians are free to gamble or place wagers online free from prosecution. If you wish to operate an online site in Canada, well that’s another story. It’s clearly OK for Canadian lottery corporations - and several are with success - to offer a limited product selection online, the purchase of lottery tickets and innovative scratch ticket type games.

However, poker and sports wagering, the two most popular products with online players, are currently not in the offing by the lottery corporations.

When will Canadians be able to log-on to the Great Canadian or Caesars Windsor online poker room?

Hopefully soon, as it is clear that attempts to ignore offshore operators is not a sustainable position. Further, the need to provide a comprehensive regulatory environment to ensure integrity of the games being offered and a measure of consumer protection is without question. We will never be able to keep offshore operators out – even the CRTC is not willing to regulate Internet content.

Regardless of who operates or offers product a regulatory framework for I-gaming is needed now.

While provincial lottery corporations work to determine the best business model and make a case for expanded online offerings, the industry needs to address the fears of politicians and industry critics: that

this not a wild expansion of gaming or a drive to increase revenues, but a responsible measure to ensure there are fair games offered in safe and secure environments because Canadians are now spending in excess of 700 million dollars online annually and it will only increase.

Clearly creating a regulatory structure and consumer protection measures is the responsible approach.

Why now?

One reason Canadians should be concerned is that it appears the United States is getting its act together to find a more reasonable solution than the unworkable UIGEA bill passed in passed in 2006.

In early May, Barney Frank, a democrat member of the House of Representatives introduced a trio of bills - HR 2266 “Reasonable Prudence in Regulation Act”; HR 2267 “Internet Gambling Regulation, Consumer Protection and Enforcement Act” and HR 2268 “Internet Gambling Regulation and Tax Enforcement Act” that would legalize, regulate and tax internet gaming in the United States.

Mr. Frank, a seasoned legislator, who currently serves as Chairman of the House Financial Services Committee has crafted bills that have appeared to avoid several political landmines – it excludes sports betting, allows for States and Tribal bodies to regulate and allows both the federal and state governments to level fees or taxes. The Bills have also earned 42 co-sponsors included a key representative from the State of Nevada.

We are well aware that the political environment has changed in Washington and while these Bills

would not become law until 2011 at the earliest, in the public policy and lawmaking world this is lightning speed.

If the United States finds the right regulatory structure and gets it in place without Canada having addressed the issue, the $700 million in spending

by Canadians will quickly become $2 billion.

Canada’s attempts at this point have been a federal-provincial-territorial working group that has been working for over two years, with no mandate to engage stakeholders and no date to report their findings. Clearly we are not on the path to a solution.

One often-overlooked part of the I-gaming debate in Canada is the significant contribution of Canadian individuals and companies to the global I-gaming industry. The current and past CEO’s of PartyGaming – Jim Ryan and Mitch Garber and innovative game software and solution providers like Cryptologic and Chartwell easily come to mind. Entrepreneurs providing niche product and services such as Parlay Entertainment a world leader in Internet bingo solutions and SportsDirect Inc. of Halifax providing sports statistics for online and fantasy sports providers are also I-gaming industry leaders.

So it’s clear there are many reason for us to get the I-gaming issue in Canada resolved – its here and its growing, Canadians are participating in ever increasing numbers, and Canadian companies are world leaders in the development of industry - so let’s get the discussion out in open and get on with it.

Paul Burns is Vice President Public Affairs at the Canadian Gaming Association.

Canadian Gaming Business | 33

finance&investment

“What happens if…?”

By Paul Curitz

“My wind cooling my broth would blow me to an ague when I thought what harm a wind too great might do at sea.” – Salarino in Merchant of Venice, Act 1 Scene 1 So wrote William Shakespeare over 400 years ago about Salarino, a merchant involved in the trade between England and Venice. The underlying question is one that KPMG is often asked, “Why is forecasting accurately such a hard thing to do in my organization?”

The stark answer is that today not enough organizations apply the right resources to the process. The good news is that eventually mastery of forecasting will become the norm.

The first to acquire this skill often have to learn the hard way; those that follow benefit from the pioneers’ 34 | July 2009

experiences, and eventually the skills needed become sufficiently widespread that they are deemed commonplace. This article sets out some of the keys to success and the obstacles that need to be overcome if organizations are going to be able to answer Salarino’s question.

Many organizations that seek advice from KPMG on enhancing forecasting processes seek guidance on how to make forecasting more insightful and reliable. KPMG International’s sponsored Forecasting with confidence survey conducted

in 2007 by the Economist Intelligence Unit reported that over 80 percent of organizations surveyed produced forecasts that were more than 5 percent inaccurate. Our research has also shown that inaccuracy of forecasting is a critical factor in sustaining confidence in management. In addition to concerns relating to forecast accuracy, a large proportion of organizations that seek help in respect to predictive reporting have reservations that their budgeting and forecasting processes do not help them to enhance business performance.

In the 2009 KPMG International report Being the Best: Thriving Not

Variance of actuals from forecasts over the last three years % of respondents 0 >50%

5

10

15

30

2%

21-30%

4%

Above forecast

16-20%

8%

11-15%

12%

6-10%

23%

0.1-5%

15%

Most accurate

1%

0.1-5%

8%

6-10%

12%

11-15%

5%

16-20%

4%

21-30%

Below forecast

3%

31-50% >50%

25

1%

31-50%

On target

20

2% 1%

Source: KPMG International, “Forecasting with confidence” (September 2007)

Surviving, forecasting continues to be a hot topic for the CFO community.

For many organizations, the predictive reporting process is cumbersome, costly, and perceived as being of less importance than historical accounting. Organizations should better recognize that reliable forecasting can enhance business value, enable leading companies to “sense and respond” to business conditions, and make timely adjustments to their operations. Without reliable forecasting at the heart of their performance management process, key opportunities and risks are likely to be missed.

Having managers’ performance measured against outdated targets may well encourage unwanted behaviours such as “sandbagging.”

Should Shakespeare’s Salerno invest in a bigger ship or a newer ship with the latest weather resistant technology?

Perhaps he needs to get out of the shipping business! When the ship is beset by a storm should the captain jettison the silk or the saffron, or should he make for the nearest haven and deliver the goods late to market? And what impact do the skills of his crew have on the captain’s options? What would the impact on the market price of silk and saffron be on Salarino’s credit rating with the Bank of Shylock taking a particular course of action?

The most common technology today used to support predictive reporting remains spreadsheets. These flexible and powerful personal productivity tools are primarily designed to support individual data analysis. Robust predictive reporting requires contribution from multiple internal and external sources. Fortunately, some 400 years after Salarino technology is available to integrate and coordinate enterprise-wide multiple data sources, which fully supports the sophisticated scenario analysis. The adoption of these tools has been slow but increasing as the benefits of deploying them, including competitive advantage, become better understood. Certainly, amongst the top performing organizations, these tools are becoming

finance&investment the norm rather than the exception.

While the CFO remains best placed to take ownership of coordinating forecasting, the finance function should be only one of many contributors, which could include marketing, production, HR , suppliers, customers, government agencies (for weather and demographic forecasting, legislative changes), all need to be involved.

All factors impacting an organization’s performance and their interdependencies should be taken into account and incorporated into the forecasting process and model, and standard continuous enhancement techniques applied so that the reliability of the model can continue to increase over time.

What has all this to do with the gaming industry? Try replacing Salarino with the name of your CFO or COO, for the ship think of a resort, for silk and saffron envisage Slots or Tables, for crew think of people within your organization.

If your objective is to make your organization’s forecasting more accurate, treat predictive reporting as a science and not an art, use the right tools and inputs to deliver a realistic model of your business and empower your captains to make decisions based on the latest model rather than on a budget developed 18 months earlier.

Paul Curitz is an Associate Partner in KPMG’s Financial Management Advisory practice and a member of the firm’s Lottery and Gaming practice.

Canadian Gaming Business | 35

Profile

The Association of Gaming Equipment Manufacturers

By Marcus Prater

The Association of Gaming Equipment Manufacturers (AGEM) is proud to have partnered with the Canadian Gaming Association (CGA) to be a sponsor at the recent Canadian Gaming Summit at Caesars Windsor. When everyone works together, gaming trade shows can be extremely important and effective business events for both suppliers and operators.

For those of you not familiar with AGEM, we are an international trade association representing manufacturers and suppliers of electronic gaming devices, systems, table games, key components and support products and services for the gaming industry. AGEM works to further the interests of gaming equipment suppliers throughout the world.

Through political action, trade show partnerships, information dissemination and good corporate citizenship, the members of AGEM work together to create benefits for every company within the organization. Together, AGEM has assisted regulatory commissions and participated in the legislative process to solve problems and create a business environment where AGEM members can prosper while providing a strong level of support to education and responsible gaming initiatives.

AGEM is 75 global members strong, anchored by the big slot machines companies that dominated the exhibit space during the Canadian Gaming Summit. It was refreshing to discover during my time in Windsor that the gaming market in Canada has not been as adversely affected by the economic downturn as markets in the U.S. and other international jurisdictions. The keynote panel featuring top executives from Aristocrat, Bally, IGT, Konami and WMS highlighted that good business can still be found out there, which in turn means the casinos in Canada are still 36 | July 2009

drawing in players as well as spending money on new machines.

The Canadian market continues to be a vibrant outlet for the creative technology and high level of customer service AGEM members provide. To track the economic activity produced by gaming industry suppliers, AGEM commissioned an independent study conducted by the respected Las Vegasbased research firm Applied Analysis. First released last November and subsequently updated in May of this year, the report, available at www.AGEM.org, is the first comprehensive review of the global gaming supplier industry, highlighting the size and scope of the sector and specifically identifying AGEM members’ global reach.

Highlights of the report included (all figures are in U.S. dollars): • Including direct, indirect and induced impacts, the global gaming supplier segment generates $35.5 billion of economic output, ranking on par with the direct output of the $32.5 billion commercial casino industry in the United States.

• The industry directly generates $12.7 billion in economic output, employs more than 29,000 workers and pays them an estimated 2.0 billion in wages.

• The industry employs a broad range of workers, including high-end technical professionals and engineers responsible for hundreds of millions of dollars in

research and development annually.

• The average wage within the industry is $68,300 annually, more than double the U.S. average of $33,300 and even more than the U.S. average median household income of $50,200.

• Including the “ripple effect” of the industry’s contributions, the industry reported a combined employment of 82,600 and salary and wage payments of $4.8 billion • Key economic measures all represented increases from the prior year with economic output up 6.6 percent, employment up 5.1 percent and salary and wage payments up 6.9 percent.

Clearly the suppliers are an important cog in the machinery of the North American gaming industry, though we weren’t able to quantify a total economic impact until Applied Analysis finished compiling and crunching the numbers. When business is good for the suppliers, it is generally good for casino operators. As for casino operators in Canada, we congratulate you on your success and thank you for your commitment to new games, machines and technology that helps keep gaming operations fresh and attractive for the players who ultimately drive the industry.

Marcus Prater is executive director of the Association of Gaming Equipment Manufacturers (AGEM).

He may be reached by email at AGEM.org@ cox.net or by phone at (702) 812-6932. The association’s Web site is www.AGEM.org

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Profile

The Protection of Children

By Marie Mullally

Ninety-four per cent of children have Internet access at home, but only 13 per cent are supervised when they go online. Of the 2,500 sites available to choose from, many don’t require I.D. and some don’t even require credit cards.

Yes, children in Canada can most certainly access online gambling and, according to research, a startling number of them do. In Nova Scotia, youth participation in Internet gambling is triple that of adults, and we know that prevalence is repeating itself in jurisdictions across the country. Because the reality is, kids who want to gamble are finding ways to do it and the Internet is rich with opportunities and rife with risks.

But should their access to the online gambling world be left unattended?

Should unregulated Internet gambling operators be relied upon to prevent youth, whose risk analysis and decisionmaking skills aren’t fully developed, from participating in an activity they aren’t mature enough to handle? For the Nova Scotia Gaming Corporation (NSGC), the answer to those questions is unequivocally “no.” The answer, as we see it, is that managers and operators of Canada’s gaming industry have a duty to minimize the potential harm of gambling as much as possible. Where underage youth are concerned, that means making a concerted effort to prevent access to any and all forms of gambling. No exceptions.

It is this non-negotiable stance that led NSGC to invent and develop BetStopper, a world-leading achievement. BetStopper is easy to use software designed specifically as an online gambling prevention tool. By installing the software on all computers in the household and setting up a user 38 | July 2009

account for every member of the family, complete with a unique username and password, parents can enable a gamblingblocking function for their children’s user accounts. Then when children are logged into their accounts and surfing the Internet BetStopper effectively blocks their access to all gambling content. That includes play-for-free poker sites, sites where provincial operators sell their lottery products, and sites requiring a deposit of money that offer everything from bingo, to virtual scratch tickets and casino-style table games.

As the manager of gambling in our Province, we felt this was an area in which we had to demonstrate leadership.

The research is clear. The younger someone starts to gamble, the greater the chances they will develop problems with gambling. And if someone develops a gambling problem, our entire industry loses – so prevention is key. That’s why we set out on a two-year journey to invent BetStopper. What sets it apart from other blocking software is that it is narrowly focused – it blocks gambling content exclusively, rather than a host of potentially inappropriate content categories – and as a result, is more effective.

After developing the solution, we went out in the field to test it. Results from a six-month pilot test of BetStopper prove it is an effective youth gambling prevention tool. In fact, 92 per cent of parents said exactly that, along with the 85 per cent who think using BetStopper in their

home will help prevent their children from developing learned gambling behaviours on the Internet. They said the software was easy to use, that their own awareness of the risks increased, and that 98 to 100 per cent of gambling sites were effectively blocked.

That result that resonated with us the most was that a full 99 per cent said NSGC should continue to make it available to Nova Scotia families.

So we listened. The bottom line is that we wouldn’t operate our casinos without ensuring security personnel conducted age verification checks at the door, nor would we allow our retailers to sell tickets to anyone under the age of majority. For the same reason, we shouldn’t sit back knowing the extent of gambling offerings available on the Internet today and not do something to help protect those who are among the most vulnerable for developing a gambling problem: our children.

Underage youth gambling is a real issue.

BetStopper is a real solution. As of May 29, 2009, all families in Nova Scotia can download and install BetStopper for free.

This prevention program is a world-first addition to NSGC’s social responsibility portfolio and we look forward to finding ways to partner with other jurisdictions across the country and around the globe, so we can all work together to keep our children safe and enhance the social responsibility of our industry.

Marie Mullally is President & CEO of the Nova Scotia Gaming Corporation.