Canada's Premier Gaming Industry Magazine
Vol. 10 No. 2
Summer 2015
www.CanadianGamingBusiness.com
Official 2015 Gaming Summit Show Issue
FULL HOUSE
Player Engagement for Canadian Casinos Real-Time DecisionMaking for Casinos Enhancing the Player Experience Through Social Media The Lottery Long Game
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Summer 2015 Publisher
Volume 10 Number 2 Chuck Nervick chuckn@mediaedge.ca 416.512.8186 ext. 227
contents 18
www.CanadianGamingBusiness.com
42
46
Editor Sean Moon seanm@mediaedge.ca Advertising Sales Chuck Nervick chuckn@mediaedge.ca Senior Designer
Annette Carlucci
annettec@mediaedge.ca
Designer
Jennifer Carter
jenc@mediaedge.ca
Production Manager
Rachel Selbie
rachels@mediaedge.ca
Production Coordinator Karlee Roy karleer@mediaedge.ca
Circulation Manager
Maria Siassina
circulation@mediaedge.ca
Proudly owned and published by:
President Kevin Brown
President & CEO Bill Rutsey
kevinb@mediaedge.ca wrutsey@canadiangaming.ca
Senior Vice President Chuck Nervick
Vice President, Public Affairs Paul Burns
chuckn@mediaedge.ca pburns@canadiangaming.ca
Canadian Gaming Business is published four times a year as a joint venture between MediaEdge Communications and The Canadian Gaming Association To advertise: For information on CGB’s print or digital advertising opportunities: Chuck Nervick 416-512-8186 ext. 227 chuckn@mediaedge.ca Copyright 2015 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 $40* 1 yr, $70* 2 yrs. USA $65 yr, $120* 2 yrs. International $90* 1 yr, $160* 2 yrs. *Plus applicable taxes. Postmaster send address changes to: Canadian Gaming Business Magazine 5255 Yonge Street Suite 1000, Toronto, Ontario M2N 6P4
Official Publication of the Canadian Gaming Summit
7
EDITOR’S NOTE
8
MESSAGE FROM THE CGA
10
COVER STORY Full House – Engaging today’s player in Canadian casinos
16 ANALYTICS
Marketing Express — The power of real-time decisions for casinos
18
LOYALTY PROGRAMS
22
INDUSTRY ROUNDTABLE
26
CHARITABLE GAMING
Engaging Loyalty — Creating a loyalty relationship at every point
Social Media Engagement — How social media can enhance the player experience New Ideas, New Energy — Breathing new life into Ontario’s charitable gaming industry
28 LOTTERIES The Lottery Long Game — Trends and challenges in the lottery business 32
FACILITY PROFILE
33
EMPLOYEE ENGAGEMENT
Delta Gaming The Isolation Factor — Why employees don’t trust their employers
34 FINANCE Looking Ahead — Why the future needs to be now 36
CORPORATE PROFILE
38
EXECUTIVE Q&A
42
FACILITY PROFILE
IGT – A winning combination for Canada Stephen Rigby, President and CEO, OLG Grey Rock Casino
44 MARKETING Marketing Local — Launching the underdog local property 46
FOOD AND BEVERAGE
48
THE CANADIAN GAMING INDUSTRY AWARDS
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Success in the Summertime AS THE EDITOR OF Canadian Gaming Business, the month of June is one of my favourite times of year. Not only does the team here at Mediaedge and our partners at the Canadian Gaming Association have the privilege of bringing you another superb issue of Canadian Gaming Business, the industry is also heading for Windsor, Ontario for an exciting three days at the annual Canadian Gaming Summit. (The fact that the golf season is now in full swing is just an added bonus.) For this 19th edition of the Gaming Summit, attendees can expect to see and experience the best the gaming industry has to offer as they converge on the first-rate facilities of our host venue, Caesars Windsor. As always, the Summit delivers faceto-face interaction between attendees from all gaming sectors, disciplines and regions within Canada and beyond, and is the leading provider of information and education to the Canadian gaming community. A top-notch educational program, expansive exhibition floor and enjoyable social events will help make the 2015 Summit an unforgettable experience! With all the activity and excitement surrounding the Summit, we hope you’ll find time to peruse this latest edition of CGB. From an in-depth analysis from the experts at Ipsos at how casinos can play their cards right in order to better engage players to an enlightening and informative roundtable discussion on the use of social media in the Canadian gaming industry, we’ve got you covered. With this issue, we are also delighted to bring you the latest edition of Canadian Gaming Lawyer, where Editor Michael Lipton and his team have put together another stellar lineup of articles and insights to keep you informed on everything you need to know about gaming law and regulatory practices. Finally, be sure to check out this issue’s profiles of the 2015 Gaming Industry Leadership and First Nations Award winners as we acknowledge their impressive contributions to the Canadian industry gaming industry. This year’s honourees are more than deserving of these accolades and we wish them much continued success in the years to come. On behalf of CGB’s Publisher Chuck Nervick, we look forward to meeting you out on the Summit floor to discuss what’s important to you in terms of future article ideas and coverage in Canadian Gaming Business. Enjoy the issue!
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Canadian Gaming Business | 7
05/05/2015 14:23
messagefromtheCGA
An Important Anniversary BY BILL RUTSEY, PRESIDENT AND CEO OF THE CANADIAN GAMING ASSOCIATION
TEN YEARS AGO GAMING was under constant attack in the media and by the public, with no coherent strategy for response, no information or research to respond w ith a nd no spokesperson or cha mpion. It wa s in this environment that the idea of creating a national or g a n i z at ion , t he C a n a d i a n G a m i n g A s s o c i at ion (“CGA”), was born in March 20 05 at the Canadian Gaming Summit in Niagara Falls. Two of CGA’s first tasks were to acquire the Summit from its original owner and to create a publication that spoke to and for the Canadian gaming industry. CGA, together with our partner, MediaEdge Communications, substantially improved the Summit from day one and ref ined it over the years to become Canada’s premier conference and exhibition for gaming professionals and developed Canadian Gaming Business, the magazine you are reading. Creating an organization that is now recognized as being a credible source of responsible and reliable information with the necessary access to media to respond to criticism and rebut inaccuracies did not happen overnight. An important part of this has been CGA commissioning and publishing third-party research about subjects such as the depth and breadth and consequent economic impacts of gaming in Canada, VLT-style gaming, assembling the facts as they relate to rates of problem gambling across Canada and around the world, and the factors to consider when attempting to collate the socio-economic costs of gaming as well as surveying public attitudes, opinions and habits as they relate to gambling. Such information has allowed us to put the facts on the public record and to shift the tone of debate. CGA
8 | Summer 2015
has gotten out these facts and more by appearing before government committees, speaking to community groups and through media outlets including national and local television, talk radio and opinion editorials in national and local newspapers and online. But CGA is about more than just information and getting the facts out, as important as this is. We are also involved in responding to evolving public attitudes and expectations, and market conditions. CGA has and continues to deal w ith subst antive national gaming issues such as bricks and mortar and online gaming development and expansion, the evolution of private and public sector roles and responsibilities, money laundering and single event sports betting. CGA works consultatively and cooperatively with the federal and provincial governments and agencies on these types of issues, including making representations to the federal government and agencies as well as individual Senators and Members of Parliament. With your support, over the past ten years CGA has gone from “who are those guys?” to become a national information source of accurate industry data, a leading participant in developing industry-wide approaches to critical issues, an important voice to address legislative a nd reg ulator y issues, a nd a leader in ident if y ing emerging issues. We look forward to working together with all of our industry participants to continue in these roles and to fulf ill our mandate – to create a better understanding of the gaming industry by bringing facts to the general public, elected off icials, key decision makers and the media through education and advocacy.
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coverstory
FULL HOUSE
Engaging Today’s Player in Canadian
BY JASON ALLSOPP, ROSE WONG AND PAUL LAUZON
10 | Summer 2015 10 | Summer
n Casinos
coverstory
Casinos are a big deal in Canada. Throughout communities large and small, they cover our country, opening their doors every day to deliver an engaging and enjoyable experience to customers. As with most industries, it is being disrupted. Heightened competition south of the border, advances in technology and a growing younger demographic all mean that the industry has had to evolve in order to keep visitors satisfied and coming back for more. But are the efforts being made by Canadian casinos to engage their customers actually paying off?
Canadian Gaming Business  |  11
coverstory At Ipsos, our Lottery and Gaming practice studies the habits, attitudes and desires of Canada’s gaming population. We ask them what they are looking for in casino entertainment, what their expectations are, what they do inside the casino, how much they spend and how they rate the entire experience. In 2013, we fielded a study on the attitudes and behaviours of Canadian casino visitors to take a clear measure of the market in this country and to uncover opportunities to help casino operators better identify gaps in services with ways to improve their offer. And once again, we repeated the study this year, allowing us to assess whether the efforts being made by casinos to boost engagement are working. We’re pleased to present some of our findings here. INSIDE CANADA’S CASINOS
We wanted to get a look at the kind of people who frequent casinos, how often they go and what they do once they pass through the doors. Over the past year we surveyed 1,000 casino goers across Canada and asked them about their activities and interests in casinos. Respondents had to have made one or more visits to a casino in the past year to be eligible for the survey. When we conducted this study in 2013, we found that on average, visitors who visited a casino in the past month did so twice. Looking at this year’s data, these levels of visitation remain stable. When it comes to visits per year, the regular casino visitor increased ever so slightly from 5.5 to 6.2 visits. Most casino visits are infrequent, with half visiting only one to two times per year. More than one in five visit monthly or more often. These numbers indicate that casinos are successfully expanding their player base. In order to maintain this traffic, casinos need to continue with their advertising efforts and continue to tailor their offering to customers’ needs. PLAYING THEIR CARDS RIGHT
As would be expected, people primarily visit a casino to play games. Of the gambling activities played, slots continue to dominate as the most popular. However, overall participation is decreasing. In 2013 almost half (49 per cent) played slots always, but that number drops to almost two in five (38 per cent) in 2015. This is likely a symptom of a growing younger cohort, one that prefers games that offer social interaction. Following slots, buying lottery tickets, VLTs, and playing card games like blackjack and poker lead in popularity. When it comes to most gambling, Canadians are partaking in more activities. This is especially the case for table games, poker and blackjack. Again, this is a positive trend for casinos as it suggests an increased enthusiasm among the younger demographic. As the typical player profile of these games tends to skew towards those of younger ages, social features may be an appealing draw. To continue this upward trend, casinos should include gambling activities that involve more social interaction and group play in their offering. It could also be beneficial to include more gambling activities integrated with digital technologies for innovative gameplay. 12 | Summer 2015 12 | Summer
coverstory
GAMBLING ACTIVITIES DURING CASINO VISITS 38%
PLAY SLOTS
18%
49%
BUY LOTTERY 8% TICKETS 11% PLAY VLTS
24%
9% 7%
21%
11% 8% 7%
PLAY CARD GAMES 7% 9% LIKE BLACKJACK 6% 8%
19%
23% 14%
17%
13% 13%
PLAY TABLEGAMES 5% 7% LIKE ROULETTE/ CRAPS 4% 6%
16% 13%
ALWAYS ALWAYS
93%
45% 42%
14%
46%
14%
EVER DONE GAMBLING (NET) 96%
15% 12%
43% 40% 35%
EVER DONE GAMBLING (NET) 97%
14% 14%
PARTICIPATE 2% 5% 10% 12% IN OFF-TRACK BETTING 2% 2% 7% 11% 2015 (N=1,010): 2013 (N=1,018):
7%
63%
14%
15%
90%
61%
17%
14%
14%
PLAY CARD GAMES 5% 8% LIKE POKER 4% 6%
9% 14%
23%
13%
EVER DONE
42% 37% 30% 22%
MOST OF THE TIME MOST OF THE TIME
SOME OF THE TIME SOME OF THE TIME
RARELY RARELY
Base: 2015 – Visitors; 2013 – All respondents Thinking about when you visit a casino, how often do you do the following?
BEYOND GAMES
Casino visitors are also partaking in other entertainment options that are non-gaming related. Our study found that participation of non-gambling activities during casino visits remained relatively consistent to 2013 levels. Dining, live entertainment, visiting a casino bar and staying at a hotel bar are undertaken more frequently than other gaming activities including playing VLTs, blackjack, poker and table games like roulette and craps. What’s the main takeaway here? In short, the efforts to attract and engage peripheral players who are interested in non-gaming amenities seem to be paying dividends for casinos.
ACTIVITIES DURING MOST RECENT VISITS 88% 92% 84% 90%
GAMING (NET) CORE GAMING (SUBNET) 70%
PLAY SLOTS PLAY CARD GAMES LIKE BLACK JACK PLAY VLTS PLAY TABLE GAMES LIKE ROULETTE/CRAPS PLAY CARD GAMES LIKE POKER BUY LOTTERY TICKETS PARTICIPATE IN OFFTRACK-BETTING NON-GAMING (NET)
4% 3%
14% 14% 12% 12% 10% 10% 8% 9% 12% 14%
2015 (n=998) 2013 (n=1,008)
60% 59% 43% 46%
DINE AT THE RESTAURANT 23% 25%
VISIT A CASINO BAR WATCH LIVE ENTERTAINMENT
80%
17% 15%
Base: All respondents who participated in games Which of the following did you do during your last visit to a casino? How much did you spend on the following during your last visit to the Casino?
MEDIAN SPEND (N=VARIES) $65 $60 $60 $60 $50 $50 $50 $50 $30 $40 $50 $50 $53* $80* $20 $16 $** $** $50 $41 $45 $41 $25 $20 $50 $50
* Small base size, interpret with caution. ** Very small base size, interpret with extreme caution.
WHERE’S THE ACTION?
During their most recent visit, slightly fewer of Canada’s casino visitors are playing slots. Games such as blackjack, VLTs, and table games remain stable, however. Although slot play is decreasing, it continues to dominate activities during most recent visit with players spending a median of $50 during the visit. As with 2013, visitors continue to spend more on gaming activities than non-gaming activities. Visitors spent a median of $65 on gaming activities during their most recent visit, compared to $60 in 2013. When it comes to nongaming activities, overall spending has also slightly increased to $50. These increases in spend mean that efforts to engage seem to be working as visitors are willing to shell out a bit more for both gaming and non-gaming activities. INCREASING YOUR ODDS
As with all things, there’s always room for improvement in casinos. We were curious to know which amenities visitors wished casinos offered but didn’t. Non-gaming activities topped the list, including a hotel on site (12 per cent) and live entertainment (9 per cent). Comparing the data between 2013 and 2015, we have seen slight but consistent increments to overall amenities, which suggests that people are getting more demanding in the offerings they desire. They want a wider range of variety of amenities, a “one-stop shop” or location that is able to meet all of their preferred requests. Still, the majority of visitors continue to be quite content with the services and amenities offered at casinos. HITTING THE JACKPOT
Casinos are a big business in Canada so we wanted to know just how big of spenders Canadian casino visitors are. In our study of Canadian casino visitors, we see that they are spending slightly less on gaming activities in 2015. In 2013, the median past year spend for gaming activities was $200, but this declined to $180 in 2015. In line with participation, visitors continue to play table games at the same level, but spend less on slots. Visitors are spending slightly more on non-gaming activities across their visits in the past year ($130 in 2015, compared to $100 in 2013), which is largely driven by dining. Restaurant dining continues to have the highest median spend for non-gaming activities, at $100 spent in Canadian Gaming Business | 13
coverstory the past year. This suggests that casinos are doing a good job in attracting people to spend more on non-gaming activities, and indeed, these efforts are paying off. When the player base enlarges and we engage with more peripheral players, spend typically declines on average. This decline in median spend on gaming coupled with an uptick in non-gaming spend illustrates that the base is growing. The majority of visitors (84 per cent) set a budget when they go to a casino. But do they follow it? Most do! Three in five (60 per cent) admit to staying within their budget, and a quarter (25 per cent) spend more than allocated. Only 15 per cent spend less than their allocated budget. Visitors who visit casinos less frequently (less than monthly visits) are more likely to set a budget, which is also consistent with 2013. Interestingly, those who budget a certain amount are more likely to have a higher overall satisfaction level with their last visitation to a casino. WINNING BIG
As we’ve seen, overall spending has gone up, which could be linked to the casino’s efforts. We asked respondents whether they are spending more, the same or less money when visiting casinos than they were a year ago. We found that 13 per cent spend more, 70 per cent spend the same, and only 17 per cent shell out less. Not bad numbers at all. Clearly people are seeing the value in the offerings, encouraging them to spend more on gaming and non-gaming activities. When we look close at the reasons for spending less, lack of money and not winning enough score high, but they have both dropped significantly in importance since 2013. This could point to the fact that the casino’s perception as an entertainment destination is improving. People may be more selective in where they use their discretionary income for entertainment and expect more from their gambling dollars. But because they see the value gained through non-gaming amenities, they continue to spend their time and resources at the casino.
14 | Summer 2015 14 | Summer
As with 2013, proximity to the casino is not a huge factor. If visitors perceive that the offerings hold enough value or appeal, it seems they will make the trip to spend time or resources in the casino. VISITOR PROFILE
Visiting a casino is mostly seen as a social outing. Most of our respondents stated that when they visit a casino, they do so with a friend or spouse, or a group of friends. Very few visit by themselves always or most of the time, but this is slightly increasing, indicating that visitors are slowly becoming more comfortable with the notion of visiting by themselves. Those who visit with a spouse are more likely to have a higher overall satisfaction level with their last visitation to a casino. And those who visit with a group of friends are likely to be Millennials, which is in line with the social factor we are seeing, and yet another indicator of why it is important for the casino to continue to market the social aspect of their offerings. Casino visitors are becoming increasingly time conscious lately. Visitors want a wider variety of amenities, and with that, they want it to be delivered within their timeframe. Of the 41 per cent who budget their time during visitations, two-thirds (65 per cent) of them stay within that time frame, while a quarter will spend more than the budgeted time. Visitors are visiting casinos the same time of the week as they did in 2013. They are more likely to go on the weekend, or share their visitation between during the week and on the weekend. However there is a slight transition of those who visited during the week and on the weekend, to visiting during the week. This suggests that people are considering the casino as a conventional activity they can partake in on a more regular basis (i.e. shopping, or going to the movies) and not just an event for the weekend. And when it comes to possessing a player’s card, we’re seeing a slight decrease in those who own one. There are more infrequent players in 2015, and we know that those who visit less frequently (less than monthly) do not have a player card, which is to be
coverstory understanding of consumers – what they want, where they spend their dollars and what they value. Armed with such information, casinos will be able to tailor their offerings to match these desires and improve their odds of success.
EXPERIENCE SATISFACTION 2013 (n=1,018)
2015 (n=1,010)
9%
Satisfied 48%
12%
10 – EXTREMELY SATISFIED
11%
9
12% 26%
8
27%
11% 12% 4%
Dissatisfied 4%
20%
7
21%
Satisfied 49%
6
12%
5
11%
4
3%
2%
3
2%
1%
2
1%
1%
1 – EXTREMELY DISSATISFIED
2%
Dissatisfied 5%
Base: 2015 – Visitors; 2013 – All respondents Thinking about the last time you visited a casino in Canada, using a scale from 1-10, with ‘1’ being Extremely Dissatisfied and ‘10’ being Extremely Satisfied, overall how satisfied were you with the experience?
expected. However the highlight is that the player base is expanding – which is a huge plus. SATISFACTION IN SPADES
To help uncover which factors are the biggest drivers of satisfaction for the casino experience, we turned to the Ipsos Bayes Net modelling approach. We asked our survey respondents about the importance they place on a number of factors when they plan their visits to a casino. Two key aspects stood out in driving satisfaction: an exciting atmosphere and food and beverage services. People are looking to spend time and money in an environment that is both fun and exciting, because if it is, they’ll stay longer and bet more. And the longer they stay, the more likely it is that they will start to develop an appetite. As patrons are forking out more and more on dining services, they want the quality to be worth the price. We also found that satisfaction levels remained consistent with 2013. Half were satisfied with the experience of
their last visit, with very few dissatisfied. The lack of change suggests that the casinos have delivered on what the customers want. They are, however, still difficult to please, as seen by the number of people who are moderately satisfied and continue to want the experience to be enhanced and improved. CONCLUSION
Casinos are a lucrative market in Canada, and the results of our study illustrate that efforts to engage customers are paying off. In order to keep visitors coming through their doors, establishments need to up the ante with more social offerings, especially aimed at the younger consumer. Slots continue to dominate as the most popular activity in terms of participation and spend, but it is decreasing in both areas, while table games are gaining in popularity. Clearly Canadian casino visitors desire activities which are exciting and offer social interaction. While most visitors are satisfied with their experience, there’s still room for improvement. That will come by developing a deep
METHODOLOGY
These are findings from an Ipsos Lottery & Gaming study conducted from April 8 to May 11 2015. For the survey, a sample of 1,010 Canadians was interviewed online. The precision of online polls is measured using a credibility interval. In this case, the poll has a credibility interval of plus or minus 3.1 percentage points. For more information about credibility intervals, please visit the Ipsos Public Affairs section of our website [http://www.ipsosna.com/dl/pdf/research/public-affairs/IpsosPA_ CredibilityIntervals.pdf] at www.ipsos-na. com. The data were weighted to the casino going population of Canada by region, gender, and age. Statistical margins of error are not applicable to online polls. All sample surveys and polls may be subject to other sources of error, including, but not limited to coverage error and measurement error. Where figures do not sum to 100, this is due to the effects of rounding. About the Authors Jason Allsopp is a Vice President with Ipsos’ Lottery & Gaming practice. Based in Vancouver, Jason is part of a team of research experts dedicated to serving the market research needs of lottery and gaming organizations across Canada and the United States. Jason can be contacted at jason.allsopp@ipsos.com or 778.373.5035. Rose Wong is a Research Analyst with Ipsos’ Lottery & Gaming practice. Based in Calgar y, Rose aids in suppor ting the team of research experts dedicated to serving the market research needs of lottery and gaming organizations across Canada and the United States. She can be contacted at rose.s.wong@ipsos.com or 587.952.4873. Paul Lauzon is Senior Vice President and Managing Director with Ipsos Reid and head of the firm’s Lottery & Gaming practice. Based in Calgary, Paul leads the team of research experts dedicated to serving the market research needs of lottery and gaming organizations across Canada and the United States. Paul can be contacted at paul.lauzon@ipsos.com or 403.294.7386. Canadian Gaming Business | 15
analytics
MARKETING EXPRESS The power of real-time decisions for casinos
BY NATALIE OSBORN
There are few business environments more dynamic than that of a casino. Serving a multitude of entertainment options to thousands of patrons every day results in a lot of customer interaction points. Making sense of all these interaction points in order to market more effectively to customers is no easy task – especially when today’s consumer has come to expect marketing messages that are tailored, relevant and timely, offered to them based on their actions and behaviours, now! FOR MARKETERS, REACHING customers has become an i n c r e a s i n g l y m o r e c o m pl i c a t e d task but the use of real-time data streams and analytics are providing ma rketers w ith oppor t unit ies to really impress their best customers w it h t he r ig ht messa g i n g at t he r ig ht t i me. Ca si no s a l l over t he world are embracing the concept of building a 36 0 -v iew of the customer to truly improve the guest experience through personalization ef for t s. T h at means gathering as much information as possible about the needs, preferences and behaviors of their customers across all of their interactions. This information is then leveraged throughout the guest journey to provide more relevant offers, improve communications and increase engagement in real-time. 16 | Summer 2015
WHAT ARE REAL-TIME DECISIONS?
Real-time decisions are decisions made at a customer’s point of experience, using data captured from customer interactions as they occur, along with historical information and the outputs of analytics. Real-time marketing involves adding context to the channel by which you are interfacing with a patron. Context can be defined as the circumstances that form the setting for an event, statement, or idea, and in terms of which it can be fully understood and assessed. So for a channel through which patrons interact to have context, it would need to provide facts that surround the patron’s current situation. Let’s explore an example. John Smith, was a very high-value, high-frequency patron at the Zodiac casino, however he has not visited the casino in the last six months. John inserts his casino rewards card into
a slot machine on the Zodiac’s gaming floor. The Zodiac casino can then gather John’s preferences, his previous gaming history, his theoretical worth, his predicted lifetime value and who the casino host is for this player. Using the information, an alert can be sent to the host to go and greet John, welcome him back to the property and provide him with an invitation to an exclusive poker tournament. This is an illustration of real-time decisions in action, or real-time marketing. Real-time marketing, or the ability to provide context to a patron’s interactions, allows you to provide relevant, insightful offers, recommendations, advice and even service operations actions when they are needed the most. In the case of John Smith, the offer of a seat at a poker tournament was ex tremely relevant to him, based on his previous behavior and preferences.
analytics THE VALUE OF HIGH-TOUCH SERVICE
High-value casino customers like John Smith are very accustomed to receiving preferential treatment based on their casino activity. Casinos operate in a highly competitive environment where, if a patron doesn’t feel that he is getting the recognition that he deserves, he may be able to walk across the street to a competitor. In the larger gaming jurisdictions such as Las Vegas and Macau, it is not uncommon for a customer to have rewards accounts established at multiple casinos. Casino patrons value the high-touch service they receive once they reach preferential reward status with their preferred casino company, but all an unhappy patron would have to do is present their current players card at a competitor and they will very likely be granted the same status with the competitor. Therefore, making high-quality, real-time decisions during each patron interaction while the patron is still in the casino is critical to the success of a casino. While real-time decision-making is critical to the success of a casino, it comes with its fair share of challenges. Patrons today do not act in typical ways, which makes it difficult for a rules-only approach to be successful. Some patrons are there for gaming, some for shows and entertainment, some for dining or nightlife, some for spa and maybe even some for golf. Without a comprehensive understanding of their needs and preferences, actions taken with patrons will fall flat. When identifying what actions to take with a patron while they are in the experience, casinos need to manage the delicate balance between ensuring that the offer is attractive to the patron while at the same time maintains profitability for the casino. Showering patrons with free food and drink, hotel rooms, show tickets or even cash in a bid to maintain their loyalty can easily backfire, whether it is a direct impact on the bottom line or if patrons start to feel that these treatments are meaningless to them. Predictive analytics can supply the much needed context to the patron experience. When coupled with real-time decision capabilities, a casino can truly enhance and personalize the interactions that they have with their patrons.
First, casinos need to bring together all of the customer transaction data from all of the disparate systems that manage it. Then they need make sure that the data are of good quality and that there are no duplicates or bad data. Once the data is clean and ready, casinos build a 360-degree view of their customers and start to apply predictive analytics. This gives the casinos a unique understanding of their patron, including current and predicted customer lifetime value, the theoretical win they expect to gain from the patron whether it is daily or by trip for out-of-town patrons. They also build segmentation and response models to help them understand how to market to the patron and how they are likely to respond to offers. Companies with game-changing analytics set their business strategies based on what the analytics tell them. In their book, “Competing on Analytics - The new science of winning,” authors Thomas H. Davenport and Jeanne G. Harris highlight Caesars Entertainment as a great example of this. By gathering and analyzing patron data through their Total Rewards program, Caesars found out something very important. They realized that their core, profitable patron was not who they thought it was. It was not the high-roller who dropped thousands of dollars per trip, but it was the high-frequency, lowerspend-per-visit slot player. They designed their entire brand position, rewards program, service offering and business strategy around this player, and went on to become a market leader in the U.S. casino industry. Foxwoods Casinos is another great example. Foxwoods segmented their customer database to such an extent that they were able to understand their guest preferences very well and get extremely granular with their campaigns. In some cases, for example, they can send 400 variations of a single mailer out to their customer base. Let’s think about that for a moment. Can you imagine sending FOUR HUNDRED different versions of the same mailing to your customer base? When you know your customers well enough you can give them exactly what they want, and keep them coming back. THREE ESSENTIAL INGREDIENTS TO UNLOCK THE POWER OF REAL-TIME MARKETING
– from multiple sources to create a clear view of the customer. Most often that involves things like:
1. Assemble rich customer information
SETTING THE BIG DATA STAGE
Pulling the data together to effectively activate real-time marketing is a challenge.
the customer’s transaction history, gaming preference, any stated client preferences, use of casino amenities, restaurants, to name a few. 2. Find customer opportunity in data through p r e d i c t i v e a n a l y t i c s – employ ing
predictive analytics throughout the marketing process to not only segment customers, and build propensity models, but to recalibrate models and adjust them as new information becomes available, using self-learning models to capitalize on emerging consumer trends and needs.
3. Implement real-time marketing decision engines – to execute at the speed of
marketing today and take advantage of real-time client insight, marketers need real-time capability. This is fundamental in the digital age to convert insight into opportunity and deliver real-time offers down to the device. Incorporate smart decision engines into the marketing infrastructure that are flexible and adaptable and can consume the full range of analytical inputs from models, business rules and triggers. Lastly, ensure the solution can also receive real-time information based on important new insight from customers such as proximit y to casino amenities/games which may be a trigger for offer execution.
FINAL THOUGHTS
In the highly competitive casino environment, the use of real-time ma rketing dur ing each customer interaction has become a critical piece to marketing success. Today, being able to make those real-time and accurate decisions repeatedly is what will separate the highly successful casinos from those that flounder. As consumers’ expectations for relevancy continue to grow only the analytically savvy marketers will be in a position to leverage the wealth of data available to drive optimal real-time offers. Natalie Osborn is the senior industry consultant for SAS Institute’s Hospitality and Travel practice, and a 20+ year veteran of hospitality and hospitality technology solutions development, specializing in revenue management. Prior to joining SAS, Natalie was the director, product marketing for Minneapolis-based IDeaS Revenue Solutions, where she worked from 2000 to 2011. To learn more about how you can leverage analytics to know your patrons better than the competition visit: http://www.sas.com/en_ca/ industry/casinos.html Canadian Gaming Business | 17
ENGAGING LOYALTY Creating a loyalty relationship at every point BY PATRICK WATSON
18 |  Summer 2015
Casino loyalty programs have existed for decades. Modeled closely after some of the earliest approaches to help generate brand loyalty, and initially created within the airline industry in the 1980s, their two primary modes of reward are typically Benefits for amount spent and Value through progressive elite status. Although the programs have been honed to provide greater returns for casinos over the years, including through sophisticated data analysis, little has actually changed for players; they play and receive points, and achieve statuses represented by different tiers.
loyaltyprograms
THE BROA DER LOYA LT Y e c o s y s t e m h a s c h a n g e d tremendously, however. W hereby consumers used to belong to a handful of def ined prog rams, the average person now carries numerous disparate cards representing their ‘loyalty’ to everything from their neighbourhood café to the gas station they frequent. This evolution of loyalt y has broadened consumer ex pectations signif icantly such that the traditional approach is not as effective as it once was. In fact, studies have shown that the effectiveness of the programs have become harder to quantify. As casinos compete for the elusive share of the consumer dollar against numerous other forms of entertainment, so too are they competing with consumers’ evolving expectations around what defines value for loyalty. THE CHALLENGES OF SIMPLY REWARDING SPEND
To borrow a term from the physical sciences, most casino loyalty programs can best be described as systems that rely on the concept of causality. Simply stated, causality indicates that an effect, a loyalty reward in this case, results from an event, spending money and time playing a casino game. Although this approach has proven very successful in providing the enticement to encourage players to spend their time and money, it always relies on an “after-the-fact” reward. Players have to commit to spend money to derive benefits; even the most ardent players only spend a small fraction of their time actually spending money at casinos, so why only provide value after they have spent that time? Once the player leaves, and the positive brand experience vaporizes, what is there to nurture and even heighten their passion towards the casino brand? Although rewarding the action of spending time and money is crucial, it is just one piece of the loyalty puzzle. Numerous large casino loyalty programs have begun to realize this and have shifted focus on offering more to players on a broader basis. This includes rewards that can be obtained and redeemed on merchandise, shows and online games. However, the paradigm is still largely based on a causal relationship: play at a casino and get benefits. DEVELOPING A LOYALTY RELATIONSHIP
Given vastly shifting consumer habits due in large part to the evolution of t ech nolog y, t he causa l approach is simply no longer suff icient. Players are now accustomed to being engaged regularly and consistently in order to develop a true allegiance to a brand; loyalty is no longer an outcome, but rather an ongoing objective before, during and after the spend. Brands that excel at capturing their consumers’ f leeting attention focus on engaging those
consumers as often as they can. A “loyalty relationship” must be developed, one that benefits players regularly and as often as possible. Fortunately, the same technological tools that have resulted in a change in ex pectations by players offer casinos the ability to foster a loyalty relationship like never before. Engaging players all of the time has become well within reach of any organization. The main challenge that remains, however, is shifting the paradigm from “wanting” to generate loyalty just through causal means to fostering the relationship actively. ENGAGING PLAYERS ALL OF THE TIME TM – CREATING A SUSTAINABLE CYCLE
Key to redef ining the relationship with players is generating a cycle of engagement that keeps them immersed in the casino brand on a regular basis and for as long as possible. This cycle relies on integration with all forms of casino marketing /advertising, social media initiatives, off line marketing and direct mail. Five clear objectives help casinos develop this Loyalty Relationship: 1. Treat prospects as players who just haven’t spent yet
Create a prospect strategy that leverages most of the same tools that would be used to keep your players engaged, and offer the prospects real value for their loyalty. By getting to know them, converting them becomes much easier.
2. Provide feature-rich, online/mobile loyalty portal at the same caliber of quality as the rest of the casino experiences
A lt houg h most ca si nos now of fer t he abilit y to verify points/tier/offers online or on mobile devices, consumers expect more. Casinos are entertainment providers, not transportation companies. As such, the online offering should be a natural extension of that entertainment brand, rather than simply a place to check point balances. As well, the experience should be aligned with the level of quality that players expect when they walk through the casino door. A sub-par online/ mobile experience will detract from the brand as would dated décor, old slot machines or worn card tables.
3. Offer beneficial, brand-specific content within the portal
Contests, sweepstakes, surveys and valuable casinospecific tools can all play a significant role in engaging players and making them feel that the value they derive from their loyalt y relationship is second to none. Creating a coordinated schedule of content and activities is mandatory in order to keep the player engagement at an all-time high. The more engaging activities that are offered, the more opportunities for active communication will be generated with players who aren’t playing. This is the single most important objective to transforming a loyalty program from causal to active. Canadian Gaming Business | 19
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4. Provide offers to encourage players to ‘visit’ before they leave the casino
Although casinos are extremely adept at offering players benefits t h at encou ra g e t hem to wa l k through the casino doors, equally valuable are offers that encourage players to continue their casino ex perience after they have left. These can t ake the for m of coupons to redeem online, mobile offers that ensure players keep the casino top of mind, or enticements that are redeemable from the comfort of their home. This comprises an integral part of a c a si no’s com mu n ic at ion strateg y in addition to current direct mail or electronic communication tactics. Although paradoxical, this point is crucial since players only spend a tiny fraction of their time within the casino environment. A successful loyalt y relationship makes the most of the rest of a player’s time to ensure that the casino brand remains top of mind.
5. Personalize each experience
Once requiring massive manual analysis, personalization is now as simple as amassing player practices, preferences and metadata and using these to make every experience relevant to players. Casinos are very effective at using play data to tailor offers and experiences, but an effectively designed online/mobile experience results in significant amounts of further data regarding players’ preferences within and outside of the casino ecosystem. Using this data to hone in on what is important to a player helps make every interaction a personal one, resulting in quicker action and continuous engagement. A n en g a g i n g loy a lt y pro g r a m encourages players to interact with the casino brand more frequently,
resulting in them relying on more of the casino’ offerings for broader ex periences – winning, part ying, d i n i n g , ent er t a i n m ent , e t c . O f course, if online gambling is in a casino’s future, having an online membership ready and willing to play is also invaluable to building a loyal, long term online following. CONCLUSION
Casinos have typically nurtured their relationship with players primarily dur ing physical v isits. However, consumer ex pectations and their immersion online and through their personal mobile devices have resulted in both increased expectations and further opportunities. Rather than rewarding players just for gambling, encouraging players to interact with the ca sino at other times allows organizations to foster higher level, h i g her va lue rel at ion sh ips w it h players. A nalysis has show n that returns on investment of well over 15-20 times on an annual basis are not out of reach. Encouraging after the fact loyalty is no longer enough. Successful casinos are ones that will take the loyalty tools currently available to them and turn each player relationship into both a transactional one and a loyaltygenerating one as often as they can. Patrick Watson is CEO of SplashDot, a company focused on “engaging players all of the time.” Watson has been immersed within the gaming loyalty industry for well over a decade, working with casinos, lotteries and other organizations to craft unique strategies that have resulted in significant paradigm shifts in the loyalty realm. SplashDot helps casinos and gaming organizations keep players and prospects engaged by offering unique loyalty strategies and solutions that encourage them to come back and play more often. For more information, visit www.splashdot.com.
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industryq&a:socialmedia
SOCIAL MEDIA ENGAGEMENT
How can social media enhance the player experience? As social media and mobile technology continue to alter today’s marketing landscape, gaming organizations increasingly find themselves challenged with new ways to engage players and create a loyal following both online and off. In our roundtable discussion, Canadian Gaming Business recently reached out to social media experts across a wide spectrum of the Canadian gaming industry to get their take on how businesses can make this most of this technology to keep customers coming back.
Vince Pao Executive Director, Marketing, Pure Canadian Gaming
22 | Summer 2015
Michelle Ramsay Director, Enterprise Digital Services, British Columbia Lottery Corporation
Nicky Senyard CEO, Income Access
Sean Beckingham Founder of Branding & Buzzing, Social Marketing for Ajax Downs.
industryq&a:socialmedia
WITH THE PREDOMINANT SOCIAL MEDIA SITES SUCH AS FACEBOOK, TWITTER, LINKEDIN SO WELL ESTABLISHED AND FAMILIAR TO THE MAJORITY OF GAMERS, WHICH NEW SITES OR DEVELOPMENTS IN THE SOCIAL MEDIA ARENA HOLD THE MOST PROMISE FOR GAMING ORGANIZATIONS TO FURTHER ENGAGE THEIR AUDIENCE AND WHY? Sean Beckingham : V ideo has g row n to be a huge component in the social media world because it gives the audience a heighten sense of experience and involvement that a photo or words can't give. Instagram is a now a major player in social media because of its ability to post videos in real time. Newcomers like Snapchat and Periscope are platforms meant for shooting and posting live video feeds. For the horse-racing fan, this ads to their experience not only to see the live races via social media, but to feel like they're in the environment of the racing facility. They get to feel the excitement and thrill as if they were actually there. Vince Pao : Traditional social media platforms like Facebook have proven that photos and visual content far surpass the reach of text posts, and engagement among users increases when there is attractive visual content present. I see the biggest opportunity in the introduction of mobile apps, following the path that we’ve already seen some of the Las Vegas organizations take in developing their mobile apps to allow guests to expand the loyalty program offsite and extend their experience past the casino doors. Michelle Ramsay: BCLC is focused on strengthening our presence on Facebook and Twitter because these two channels are foundational to any social media strategy. Other sites on our radar include Instagram, Pinterest, and Snapchat. Visual content is king and these channels are all about visual content. Instagram boasts more than 300 million users and is seeing amazing results around engagement; there are nearly 1.5 million posts using #Casino. Snapchat is one of the fastest growing social media channels and has really sparked interest with younger demographics. We have recently seen some innovative marketing campaigns using Snapchat for product launches and branded stories.
WHAT ARE SOME OF THE FEATURES AND COMPONENTS OF THE MAJOR SITES CURRENTLY BEING UNDERUTILIZED BY GAMING SUPPLIERS AND CASINOS? SB : There is always more that can be done. Unlike other gaming establishments, a horse racetrack can take advantage of the human and/or live element. In other words, glorify the jockeys or trainers and even the horse itself. All these things have an identity that can offer emotional feedback or something that perhaps someone may be able to relate to or even aspire to. This can be done via videos, photos, storylines, etc. The hope is that once you attract folks to the facility, they will or may partake in some gaming activity while they are. Twitter is an excellent way to not only identify who your fans are (people already talking about you or the industry), but to connect with them and the horse racing community. MR : Because the social media landscape is constantly changing, it is important to track performance, tapping into Facebook Insights and Twitter Analytics. All social media sites now offer paid amplification and this is critical in having your message seen or heard. Fortunately, this doesn’t require a tremendous marketing investment or a media buying agency to execute. Targeted messaging through Facebook custom audiences or Twitter tailored audiences is pushing social media to become increasingly sophisticated. We now have the abilit y to identif y and reach specif ic audiences using email addresses, user identif ications, and phone numbers, making our marketing dollars work harder and smarter. Nick y Senyard : The under utilized aspect is being able to target the right actionable message to the right community/target audience. Each of these platforms has a phenomenal ability to drill down and provide useful data insight into behavior and frequency of use. Traditionally, Canadian gaming organizations are skimming the surface of this potential insight. It is important to first know your customer – who they are friends with, what they like, what do they engage with, and how do they consume content. From there, it is using strategic advertising, organic messaging and tailored content to build brand awareness and engagement.
Canadian Gaming Business | 23
industryq&a:socialmedia AS SOCIAL GAMING CONTINUES ITS CONVERGENCE WITH THE GAMING INDUSTRY AT LARGE, WHAT KINDS OF CHALLENGES AND OPPORTUNITIES DO YOU SEE FOR GAMING ORGANIZATIONS IN MAKING THE MOST OF THIS CONVERGENCE? SB : Some challenges for the gaming industry are with the various regulations that jurisdictions may have. It may be difficult to take advantage of the video element of social media that has grown so rapidly. Showing that instant gratification of winning on the gaming floor as an example. The gaming industry needs to somehow harness that visual and instant messaging component. With so much chatter going on in social media now, the information or communication being sent out has to be relevant and interesting as to the users as well. VP: Social gaming is a great development tool. Looking at the free/freemium casino games offered through numerous social media platforms, it can be an introductory game for a lot of users. The challenge of course is how to convert these social gamers into live action casino gamers. Referring back to mobile apps that some Las Vegas casino organizations are developing, MGM has had tremendous success with their My Vegas offering that allows guests to earn comps within their app that can then be redeemed at their properties. That’s a direct convergence, bringing those electronic social gamers in through their doors.
NS: We can expect to see more in the area of development and utilization of social apps that are product-specific to Canadian-based gaming organizations. The challenges and opportunities faced also revolve around the ability of these organizations to use social apps as a conduit for player acquisition and customer retention in the future. Brands that are looking to generate a large following quickly need to look at end objectives and what investment makes the most sense in both advertising dollars and effort. As the monetization and tracking opportunities become clearer and more proven, it becomes easier to see what efforts, content and messaging has the most appetite and conversion. HOW IMPORTANT IS SOCIAL MEDIA IN TERMS OF MARKETING OPPORTUNITY, PLAYER ENGAGEMENT AND MOBILE GAMING AS THEY PERTAIN TO GROUPS SUCH AS THE MILLENNIAL DEMOGRAPHIC? VP: As we all know, in the gaming industry we are hitting a generational gap behind the Baby Boomers that have been the primary demographic and target for our market for many years. The proliferation of iGaming and social gaming has widened the generational gap we’re facing and reaching the Gen X’ers and Millennials through such a competitive environment has made attracting new loyal players a much more difficult task for our industry. Ultimately, the key task, whichever medium or format that we’re using to deliver our message, needs to ensure a consistent wide range of offers and communication to our audiences. Gaming oriented messages aren’t going to cut it; we need to appeal to an entire entertainment ex perience through our differentiated offerings and non-gaming amenities. MR: Social media has become how people interact, how they consume information, where they express their opinions, ask for recommendations, and where they are entertained. From a marketing perspective, social media has to be a part of the marketing mix and it is demanding that we be in more places than ever before. From an engagement perspective however, social media isn’t a silver bullet. Engagement needs to addressed through other business strategies like product innovation, distribution, customer experience, and overall value proposition. As it pertains to mobile gaming, social needs to be thoughtfully integrated into the mobile experience, not forced and selforiented but instead a value to the player. NS: Social media in all its variations is a massive opportunity. Millennials are experience seekers and measure value based on the quality and uniqueness of the experience they have. Gaming operations create some of the most unique sets of circumstances, from the thrill of winning, to the excitement of communal entertainment. Most important is the user journey, as the volume of content and applications out there is overwhelming and competitive, and the customer experience must be tailored to meet this audience’s preferences. Mobile is also everywhere, and can’t be forgotten, as the majority of acquisitions across multiple verticals are now on mobile and it is also where Millennials most consume content.
24 | Summer 2015
industryq&a:socialmedia WHAT DO YOU SEE AS THE BIGGEST CHALLENGES GOING FORWARD FOR SOCIAL MEDIA AND ITS RELATIONSHIP WITH THE OVERALL GAMING INDUSTRY? SB : Social media changes happen at such a fast pace that you have to be quick at adapting and be okay with changing up strategy from one week to the next. With those changes comes a higher level of expectation and knowledge from the consumer, so you have to be two steps ahead at all times. VP: Social media is an effective tool and medium when used properly. Time investment is huge, but hard costs are very low, considering the wide reach you can garner providing that you have a good following. Since technology, emerging platforms and tools are constantly evolving, I see the biggest challenge in remaining a step ahead of our competitors, by staying well versed in technology developments and leveraging the best tools to stay relevant and to speak to our audiences before our competition does. The impact of iGaming or monetized social gaming on traditional casinos in Alberta is still a large unknown, but it does have an immense potential to affect our businesses in the future. MR: Perhaps the biggest opportunity with social media and the gaming industry is around social responsibility. There are countless conversations that take place in the social media space about the gambling industr y, lots of them are positive but there are also many that are negative and critical. Social media seeks a greater degree of authenticit y, transparency, responsibilit y, and accountability and I see this as a great opportunity for the industry as a whole. BCLC continues to make i nc re d ible com m it ment s t o so c i a l re spon sibi l it y through Responsible Gambling prog rams like GameSense, environmental sustainability initiatives, and of course the f inancial impact we have on the province of British Columbia. We are here to benef it the lives of British Columbians, and our story is a great one that is worth sharing. NS : Understanding is the biggest issue. We’ve seen in t he U. S. t h at socia l plat for ms h ave a tenuous relationship w ith gaming, and that includes social gaming. The understanding of what is legal and what is not is still undef ined for these large organizations that have massive client departments. Certain platforms like Facebook have taken tracking and analytics into their own hands, as they understand the importance of creating transparency on marketing performance within the channel and that the value in leveraging these social platforms is in the data that is gathered with regards to customer relationships, preferences, and behaviors.
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charitablegaming
NEW IDEAS, NEW ENERGY Breathing new life into Ontario’s charitable gaming industry BY LYNN CASSIDY
Since 2005, Ontario Lottery and Gaming has partnered with charities, commercial bingo centre operators, and municipalities on a charitable gaming revitalization initiative to help prevent further decline (as well as stabilize and grow future revenues) in charity revenues which have seen a steady slide of eight to 10 per cent per year over the last decade or more. In 1998, more than 6,000 Ontario charities were raising funds in about 230 bingo centres. Today, there are 60 bingo sites remaining, supporting fewer than 2,800 charities and not-for-profits. 26 | Summer 2015
charitablegaming
THE FOCUS OF THE Charitable Gaming (cGaming) initiative is all about supporting Ontario organizations such as food banks, women’s shelters, programs for special needs children, youth sports programs and seniors’ programs. As of June 2015, there are 31 charitable gaming sites in operation. To date, over $84 million has been directed to the over 1,600 participating charities and not-for prof its providing vital services in their communities. The cGa ming in it iat ive beg a n with six successful pilot electronic bingo sites – one each in Sudbury, Barrie, Kingston, Peterborough, and two in Windsor. After lobbying the government by charities and operators, the decision was made in late 2010 to expand beyond the original six sites and offer the new model to interested charities, operators and municipalities. PROVIDES FUNDRAISING CHANNEL
T he rev it a lizat ion i n it iat ive h a s severa l component s desig ned to provide a viable fundraising tool for charities to deliver local programs and ser vices. It includes offering c u st omer s a ne w ent er t a i n ment experience with redesigned facilities, prov iding a g reater focus on customer service, making available better qualit y food and amenities, and introducing electronic versions of t radit ion a l ch a r it able g a m ing products that can be played on touch screens alongside traditional paper products. Products include various versions of electronic bingo, breakopen ticket s a nd themed inst a nt tickets, along w ith electronically d i s p e n s e d b r e a k- o p e n t i c k e t s , branded “Tap Tix.” Under the cGaming model, OLG has the responsibility for “conduct and manage,” providing and supporting all technology and gaming products. However, the day-to-day operation
is contracted to our private sector commercial operators. Operators have made significant investments in renovations and capital improvements well above the basic requirements for the new technolog y creating appealing, beautiful facilities. Their ongoing responsibilities include facility maintenance, providing all staff ing and carrying out local advertising and promotion. EVOLVING ROLES
Ch a r it ies no lon g er sell g a m in g p r o du c t s o r h a n d l e g a m e c a s h but have a new role, suppor t ing customer service on site, promoting awa reness of how t he f u nds a re benefiting the local community and supporting responsible gaming. This includes organizing and participating in special charit y events both on site and in the community. In turn, they receive a share of the revenue directly each month. The contribution charities make to loca l com munit ies th roug h charitable gaming has been a bestkept secret and one we are tr ying t o e duc at e t he publ ic ab out . I n some communities cha r it able gaming raises more money that the United Way. This is an important element that differentiates us from other gaming facilities and one for which we are building awareness. A ddit iona lly, the administ rat ion for ch a r it ies is st rea m l i ne d a nd the burden on volunteers has been substantially reduced. The initiative has prov ided sig nif icant benef its to local communities not only through the impor t ant ser v ices suppor ted by the charities but through economic development provided by the private sector with increased employment opportunities and propert y improvements that increase the tax
base. Municipalities also maintain an impor tant role in determining the eligibility of charities and monitoring how charities spend their funds in the community in return for a percentage of the proceeds. REVENUES GROW
We are seeing revenues for participating char ities and not-for-prof its g row overall. Our challenge is that now the initiative is entering the third year, it is essential that new products and upgrades to the technolog y be forthcoming to avoid a future decline. All partners recognize that new product as well as more aggressive marketing is key to the continued success. Phase one of implementation will be completed as of the Fall, 2015 and the focus going forward will be on attaining operational stabilit y, developing new products and marketing to achieve the desired growth. As additional sites complete their approvals a second implementation phase will be planned. We are ver y optimistic that together with our private sector operators, OLG and the Alcohol and Gaming Commission of Ontario, that this initiative will be a win for all partners. Our national conference Canada’s Cha r it able Ga ming Con ference r u n n i n g i n conju nc t ion w it h t he 2015 Canadian Gaming Summit in Windsor, Ontario provides an excellent opportunit y for industr y people to le a r n a b out t he e x c it i n g ch a n g e s happening across the country including the real life experiences of the Ontario commercial operators, charities and municipalities. Lynn Cassidy is Executive Director of the Ontario Charitable Gaming Association. If you would like to learn more about Ontario’s charitable gaming experience, contact Lynn at lcassidy@charitablegaming.com. Canadian Gaming Business | 27
THE LOTTERY LONG GAME Trends and challenges in the lottery business BY JESSICA GARES
Gone are the days of lottery players huddled around their television sets, clutching their lottery tickets, eagerly awaiting the broadcast of the winning numbers. The lottery business has come a long way since the introduction of Lotto 6 /49 in 1982, marking the first time players could pick their own numbers. The industry continues to change and adapt based on expectations of players but it faces a number of challenges including the pace of changing consumer demands, evolution of shopping practices, and proliferation of enter tainment and consumer activity on mobile devices.
LOTTERY EXECUTIVES FROM across North America can likely unanimously agree on one thing: Growth in the lottery business as it stands today is uncertain with many jurisdictions looking at f lat or declining sales. There are a myriad of factors contributing to this, ranging from changing habits to shifting demographics, to an absence of new games, and a jackpot drought. These challenges have gaming executives across the countr y brainstorming the best potential methods to evolve and reverse the downward trend. B C L C P r e s i d e nt a n d C E O J i m L i g ht b o d y prev iously ser ved a s V ice President of the c o r p o r at io n’s L o t t er y d i v i sio n fo r a d e c a d e. Lightbody sees an opportunit y for collaboration and cooperation among members to tackle shared challenges together. ADDRESSING NEW CHALLENGES
The lotter y business as a whole has excelled in distribution of products but the industry is currently confronting the challenge of how to effectively grow the business and further leverage existing distribution channels. How can the retail experience b e mo der n i z e d t o at t r a c t ne w pl ayer s , w h i le continuing to satisfy the existing, loyal player base?
lotteries
This is a fine balance that leaders across the business are attempting to strike. While lottery executives across Canada face challenging forecasts, it is difficult to identify a single factor that can explain why the player base is shrinking. Lightbody does not believe shifting demographics should shoulder t he ent ire bla me for t he decline in lotter y sales. Instead, Lightbody asserts that the industry needs to keep pace with its customers and he underscores the importance of introducing new content to keep players engaged. “ We are in the entertainment industr y and people want to experience something new; an exciting, different game to play. It’s in human nature to want to explore the unfamiliar and ultimately, I believe some of our player base has grown tired with playing the same game over and over again,” says Lightbody. NEW CONTENT NEEDED
Kevin Gass, Vice-President of Lottery at BCLC also emphasises the importance of new content for players. “The fundamental challenge upon us now is the notion of content. We need to create new products or games which have the potential to appeal to players who don’t find our current products interesting or engaging,” says Gass. How does the industry successfully implement original games and provide players with innovative content in a world where the average Canadian’s attention span is less than a goldf ish, according to Microsoft? The simple answer is collectively the industr y needs to start making changes and from there, it can assess the success of individual new games and whether or not they successfully entertain our player base. Lightbody highlights that ideally, he would like to implement t wo separate teams in the BCLC lotter y division; one team would focus on enhancing existing games which are currently popular with B.C.’s core players and a second team would focus on creating and developing new games. A SENSE OF URGENCY
“We don’t have a burning platform or competitors who are threatening to eat our lunch. All of our products are profitable, but we need to create a sense of urgency to create more products and push the envelope,” says Lightbody. Both Lightbody and Gass stress the need for the industry to challenge itself, even though overall, the business is strong. “We need to think about the retail differently — how can that experience be modernized? We also need to look for opportunities to perform our business better from a customer service perspective. Lastly, we need to look for opportunities for digital integration,” explains Gass. There is certainly a thirst for innovation at BCLC and a desire to take calculated risks and put ideas into action. “There will be two parts to our lottery success,” says Gass. “The first step is stabilization, where we will seek out new,
short-term opportunities and try new methods that may turn out to be high-value activity that will correct the downward trend in lottery sales. The second part is transformation, which will be a long-term plan to make fundamental changes to create year over year growth.” INNOVATION IS KEY
Despite the heav y focus on the need for change, it is important to note the lottery business has seen its fair share of innovation. To address the challenge of shifting shopping patterns, BCLC introduced Lotto Express, which enables players to buy lottery tickets while they check out their groceries. Big box stores and their added convenience have changed the way people shop and in light of this, BCLC struck a partnership with Costco and for the f irst time in North America, Costco is selling lottery products, in the form of Scratch & Win ticket packages, across B.C. BCLC is also one of several jurisdictions that offers lottery tickets online. These new distribution channels are not intended to replace the traditional retail outlets but they provide players with more options and avenues to play. While the distribution in lottery across Canada is very strong, it is ultimately new content which will expand the player base and keep existing players interested. PARALLELS EVIDENT
Lightbody draws many parallels bet ween the lotter y bu si ne ss a nd t he sof t d r i n k bu si ne ss a nd g lea n s inspiration from the soft drink industr y’s voracious appetite to introduce new products to the marketplace. “Ta ke C o c a - C ol a or Pep si for e x a mple, w here d ist r ibut ion is a lso c r it ic a l for t hei r success a nd sur vival. Coca-Cola has not rested on the laurels of its solid brand recognition; instead it has introduced a wide range of products from Vitamin Water to Coca Cola Zero and Powerade – they did not choose to rely solely on Diet Coke or Coke. For the lottery business, we need to recog nize the need to introducing new products,” says Lightbody. The lottery business is not going to change overnight and nor should it; developing and introducing new content will take time, creativity, patience, boldness, and a willingness to experiment. Both Lightbody and Gass express the importance of creating a workplace that recognizes the value in taking calculated risks, learning from the results and moving forward. “We can continue along the same path because it has been a safe and successful one but I believe maintaining the status quo is the last thing we should be doing,” says Lightbody. A ny business that does not innovate and adapt will not prosper and that includes the lottery business.
Jessica Gares is a Communications Officer at BCLC. Connect with her by email at jgares@bclc.com Canadian Gaming Business | 29
RAMA — THE SPIRIT OF COMMUNITY
T
he Chippewas of Rama First Nation (Rama) has been known as ‘the gathering place’ since time immemorial, where travellers journeyed to trade, to seek counsel or medicines, and attend great meetings. Today, it is home to Casino Rama, a tourism attraction that brings thousands of visitors to the area daily for gaming, shows, conventions, shopping and fine dining. Rama radiates with the spirit that has made us a thriving community. For centuries, our people have been leaders, entrepreneurs, artisans and harvesters. The Seven Grandfather teachings passed down from the Creator are at the centre of community culture. These traditions form the backbone of a community that draws strength and inspiration from the past while preparing for its future. The community is approximately 90-minutes north of Toronto on almost 2,500 acres of land. Guided by long-term community visioning which has built a sustainable economic foundation, this provides members and area residents with employment close to home and services for family living and recreation. Rama was chosen as the site for a First Nation casino after a comprehensive site selection process in 1994. With strong regional support and external partnerships in place, Rama was uniquely positioned to take on the challenge. Chief Rodney Noganosh is part of a leadership that continues to work towards a community vision that makes Rama the proud progressive First Nation it is today. Having served as a member of Council for 16 years since 1996 when Casino Rama first opened its doors, he is now serving his first term as Chief. “In the early days, no one imagined the success that Casino Rama would become,” Chief Noganosh said. “As a member of Council, I have worked with the OLG and the operator to ensure that our mutual interests are served in the continued development of Casino Rama.” Over the past 20 years, employment, business opportunities and local services have all grown in response to the tourism generated. Rama First Nation and Casino Rama make social responsibility a priority, supporting local institutions and charities, including the recent Orillia Soldiers’ Memorial Hospital expansion. Casino Rama has generated close to $9-billion in revenues since opening with an estimated 3-million visitors yearly. It employs approximately 2,500 employees with a payroll in excess of $106-million annually.
Councillor Ron Douglas, Councillor Ted Williams, Chief Rodney Noganosh, Councillor Gina Genno, Councillor Tracey Snache, Councillor Nemke Quarrington, Councillor Ted Snache
Highlights from Rama’s business portfolio includes: • Two GTA Bingo facilities owned and operated by Rama Gaming, were used as pilot sites under Ontario Lottery and Gaming’s modernization for Bingo operations. • St. Eugene Golf Resort and Casino in British Columbia, is a three-way First Nation partnership established in 2004. • Rama’s Property management portfolio includes retail and professional office leased space. These businesses are among those managed by Rama’s Chief and Council, who are responsible for economic development. A trip through the community reveals the rewards of successful business planning and a clear vision. The Seniors Complex is a showcase for Senior’s care, offering apartments and extended care for members in their golden years. Rama’s Health Clinic hosts visiting doctors and health care specialists. Social Services address counselling, support groups and specialized services for members. To g e t h e r, R a m a F i r s t N a t i o n ’ s Emergency Services, Police, Fire and EMS services are supported with leading technology, equipment and highly trained crews, ensuring that members and Casino Rama patrons receive prompt professional response and quality care. Our vehicles are recognized throughout Simcoe County responding through mutual aid agreements.
Rama’s elementary school provides cultural programming and education from Early Childhood through to grade 8. Education programs have contributed to increased student success in secondary and post-secondary education, resulting in the largest per capita graduation rate in Ontario. Rama’s future is bright with the promise of coming generations. “ Ever y year, we hold a co mmunit y graduation ceremony to celebrate student achievement. This year’s event will be held on First Nation’s day, June 21st, bringing a national cultural event together with the pride of educational achievement.” Rama was invited to sit on the National Aboriginal Economic Development Board, comprised of First Nations, Inuit and Métis business and community leaders from throughout Canada. The Board advises the federal government on strategies to increase the participation of Aboriginal people in the Canadian economy. Our community was also one of the First Nation cases examined for business leadership. “We’ve always been involved in business and have a mix ture of entrepreneurs on Council, reflecting the nature of our ancestors,” said Chief Noganosh. Rama’s commitment to community and gaming management expertise remain focal points for the future. With long standing local and regional relationships flourishing, the Chippewas of Rama First Nation is poised to take the next step in solidifying itself as a leader in gaming.
w w w. r a m a f i r s t n at i o n . c a Phone 7 0 5 . 3 2 5 . 3 6 1 1 Toll-Free 1 . 8 6 6 . 8 5 4 . 2 1 2 1 FAX 7 0 5 . 3 2 5 . 0 8 7 9
Photo Credits: Robert Snache, Spirithands Photography located at spirithands.smugmug.com - 6 images; NASA and STScI: Hubble Space Telescope: M45 - The Pleiades.
facilityprofile
DELTA GAMING CONTINUING TO TRANSFORM
Delta Gaming is modernizing as it builds on its customers’ experiences, moving from the past stigma of smoked-filled rooms to fresh and inviting modern gaming environments. MOST OF DELTA GAMING’S 16 locations across Ontario have undergone major renovations with its St. Catharines location being one of the most recent transformations. “Being a part of local communities’ and customers’ social circles is extremely important to us,” says Cameron Johnstone, co-owner of Delta Gaming. Delta Gaming has strategically transformed 80 per cent of its interiors and expanded product offerings, giving people something to talk about. “With our partners at OLG, we are taking bingo and its experience to the next level and that is what we set out to do in St. Catharines,” says Johnstone. The St. Catharines facility “was a large undertaking, but we were eager to take on the challenge, and knew it would be great for our charities and the community. With the new facility we worked to improve the overall atmosphere by bringing in comfortable seating, improved customer flow and added new electronic gaming formats including electronic bingo and TapTix devices. Now our St. Catharines facility is way more than just bingo,” notes Johnstone. Delta Gaming Pickering was the first Delta location to undergo $1 million worth of renovations including the 32 | Summer 2015
introduction to electronic bingo and TapTix devices; both were graciously welcomed by customers with an average of 19,000 customers per month. Customer uptake to the TapTix devices has surpassed the expectations of Delta Gaming. As they continue to expand their product offerings this is one key area they are evaluating alongside the OLG. Over the years of transforming 14 halls into electronic bingo, Delta Gaming has mastered its floor plan and layout and March 25, 2015, marked the grand opening of the newly renovated Delta St. Catharines location. After nine months of renovations, Delta St. Catharines is now home to more than 40 full-time and part-time staff and has the capacity for 600 occupants. The new location on Bunting Road offers a newly designed layout, new colour palette, Delta Gaming’s own Red7 Eatery, as well as electronic bingo and 25 TapTix devices.
“We met I-5 Design at G2E Gaming Show in Las Vegas and knew right away they would be a great fit as we worked to modernize our facilities” says Shawn Fisher, COO, Delta Gaming. Its new LED signage allows the facility managers to update promotions in realtime which couples as a marketing channel. As customers enter the facility they are greeted with TapTix devices and led into a welcoming and open bingo area with the latest electronic bingo software. “Customers have positively commented on the changes and still cannot believe how much we have changed,” says Fisher. A raised stage lines the bingo area where live entertainment is scheduled monthly. NEWLY INTRODUCED
With the introduction of TapTix devices and electronic bingo offerings, Delta St. Catharines has given its returning customers and new guests a re-invented experience. Customers now enjoy a fun evening out, they socialize while playing bingo, play TapTix and enjoy a meal from the Red7 Eatery. Delta Gaming introduced a pub-style menu at three of its locations including Brampton, St. Clair (Toronto) and St. Catharines. With the instrumental expertise of Zoltan Bankuti, Food and Beverage Manager, the first Red7 Eatery launched over a year ago. Since its debut, Delta has seen a tremendous uptake on its Eatery and menu selection. In addition to the Eatery, Delta St. Catharines features a bar and lounge area. As Delta continues to transform, they will include a lounge area in each design to build upon the overall customer’s experience. The Delta group has been involved in the operation of bingo for over 50 years and THE DESIGN In working with I-5 Design from looks forward to the future with the OLG Washington, Delta St. Catharines and their charity partners as customers’ introduced a new look and feel to its needs and technology continue to evolve. location. The new crisp colour palette works to create an upscale and inviting For more information, visit atmosphere. www.deltabingo.com.
employeeengagement
THE ISOLATION FACTOR Why employees don’t trust their employers BY DR. MARY E. DONOHUE
What happens to a company when employees stop believing in leadership? The “isolation factor takes root.” The isolation factor is defined as a lack of trust employees have for their employers, identified by a feeling that they are on their own in getting the job done. THE ISOLATION FACTOR occurs primarily because employees are looking for help and guidance at work and are not getting it. With the increase in cutbacks recently and the decline of middle management, employees are no longer allowed to learn by failing; rather, if they fail, they are fired. Mentoring, however, allows people to succeed by failing. Mentoring has been proven to alleviate the isolation factor, and to attract and retain employees. Yet, according to Donohue Mentoring System’s recent benchmarking, very few North American workers are involved in a structured and measured mentoring program, either as a mentor (eight per cent) or being mentored (four per cent). THE MENTORSHIP ADVANTAGE
Mentoring is a little-used management tool that research shows can def lect the isolation factor and increase an employee’s w illing ness to believe and work for the corporation. Mentoring costs are as low as $500.00 per employee compared with the cost of replacing an employee, which begins at a minimum for retailers of $800 according to our research conducted in 2013, across North America. In a recent study conducted by the Donohue Mentoring System™ employees who participated in mentoring programs reported feeling that the programs had a very positive impact on their attitude to the companies that provided them with the mentoring experiences — and the improvement in perceptions is noticeable on many levels: • 56 per cent reported greater respect for the company • 61 per cent reported greater satisfaction • 59 per cent were more proud of the company, and as many had an improved opinion of the company
• 54 per cent were more likely to recommend the company, and 54 per cent were more likely to stay loyal to the company • 88 per cent agree (32 per cent strongly) that companies that offer mentoring programs also have a more supportive and positive corporate culture • 92 per cent sustainability of relationships • 94 per cent sustainability of knowledge Even with all these benef its, very few employees and corporations have experience with this proven leadership training practice. • Slightly more than a third (34 per cent) have had a mentor in the workplace (more prevalent among men than women — 37 per cent vs. 32 per cent) • Structured mentoring programs have a very low penetration in the North American workplace. Only 16 per cent of respondents say that their companies have such programs in place • 70 per cent don’t have mentoring programs, and another 13 per cent are not aware of them • Nearly a quarter (74 per cent) of companies with mentoring programs offer them only within the organization, and 20 per cent offer both internal and outreach mentoring programs Structured mentoring is an inexpensive management tool that reduces the isolation felt by an employee at work and increases his or her desire to work with and remain with the company. Dr. Mary Donohue is founder of the Donohue Mentoring System. She is Adjunct Professor, School of Business Administration, Dalhousie University, Faculty of Graduate Studies. For more information call 416-564-2944. Canadian Gaming Business | 33
finance
LOOKING AHEAD
Market Forecasting: The future needs to be now BY CHRIS MOORE
34 |  Summer 2015
Canada's gaming industry is anything but static and short of a crystal ball, remaining competitive means assuming a more invested and holistic approach to market forecasting.
finance
INDEED, AS PLAYER TRENDS, evolving regulations and rising competition continue to inf luence how provincial lottery and gaming corporations are evolving within their respective jurisdictions, there's value to be had in moving beyond traditional – and often myopic – cor porate business planning. This means transforming f inance functions to take a broader market perspective based on real-time operational and market data, and investing in the right tools and infrastructure to read the signs ahead. Traditionally a finance function task, corporate business planning is often comprised of budget preparation and a series of periodic forecasts based on an organization’s f inancial reporting calendar and existing transactional information. While this process may apply in the short term, it can also yield plans that quickly lose strategic impact and risk becoming irrelevant as the playing field is altered by unanticipated events and shifting markets. MAKE USE OF BIG DATA
Stay ing in the g ame means k now ing what's ahead. Where periodic forecasting and financial reporting may have provided short-term insights in the past, achieving sustainable growth in today's gaming industry requires the ability to collect, analyze, and make use of the “big data” shaping the market. Where are players going? What are they playing? What gaming brands are getting the business? What casinos aren't? These are the questions organizations must answer on a global scale to ensure their forecasting systems are being fuelled by the most timely and comprehensive data available. To that end, gaming stakeholders can benef it from inviting all teams to the business-planning table. That includes f inance, in its enhanced role, which must be aligned with the organization's goals and strategies. From a market standpoint, both the enterprise and specif ic business units need to engage with f inance in the forecasting process. This allows organizations to correlate and strategically align their ongoing business drivers with their existing financial data to predict future financial implications. Proper forecasting also requires the right tools. For example, investing in data-collection platforms to gauge player habits is critical to identifying emerging trends.
A GLOBAL TREND
In KPMG's recent global CFO survey, 37 per cent of highperforming companies (e.g., those with over 10 per cent growth in revenue and EBITDA over the past 3 years) plan to invest in decision support tools, and 30 per cent plan to invest in decision support capabilities, skills, and methods.
STEPS TO ACHIEVING MORE RELIABLE FORECASTING
Encourage a “buy-in” from all levels. Build momentum around the need for more reliable forecasting by helping to ensure everyone from the top c-suite executives to the gaming floor managers are engaged in the planning process. Secure forecasting investment capital. Invest in decision support and organization-wide forecasting tools. Shop around to find what works for your gaming entity or business. Fine-tune your process. Strive to ensure you define the value drivers that matter to your organization, and input the right level of detail to accurately drive decisions. Identify who owns the forecasting process. Value is only gained if someone is actively responsible for making forecast-based decisions. Unless an executive team uses the forecasts and evaluates its people based on the forecasts, it becomes little more than a finance exercise. Define your KPIs. The gaming industry is diverse, and different KPIs matter to different stakeholders. Avoid becoming overwhelmed by identifying the benchmarks that matter to you.
Equally relevant, tracking global gaming movements through social media is key to equipping finance teams with the insights and data to create actionable forecasts. No matter the method, the industry is primed with “Big Data” for the taking. Investing in the ability to capture that data, and use it effectively, is therefore critical to making sustainable business decisions that not only reflect what's been, but what's around the corner. Chri s Moore i s Par tn er, A dvi sor y Ser vi ce s, Fin an ci al Management Practice, K PMG in Canada. To discuss your forecasting needs please contact Chris at 416-777-3043 or chrisjmoore@kpmg.ca, and Silvia Montefiore, Partner, Audit and National Sector Lead, Lottery and Gaming at 416-2287211 or smontefiore@kpmg.ca. Canadian Gaming Business | 35
corporateprofile
A Winning Combination for Canada A made-in-Canada success story is now an integral part of the world’s largest gaming company. Following the historic merger of GTECH and IGT this spring, the company is offering solutions across the full gaming spectrum, including lottery, gaming machines, interactive, sports betting, and social gaming, while maintaining its unwavering commitment to its Canadian customers. TWENTY-FIVE YEARS AGO, SPIELO was established in Moncton, New Br u ns w ick to ser ve t he n a scent worldwide Video Lottery Terminal market with cabinets and games. Its focused approach quickly built market share and grew its product portfolio, e x pa nd i n g i nt o cent r a l s y st em s development and commercial casino gaming. In 2004, SPIELO was acquired by global lottery leader GTECH, which bolstered the Canadian subsidiary’s expertise and resources, helping to ensure a complete sweep of the most recent Canadian V LT and systems replacement c ycle, the ex pansion into interactive and mobile gaming, and, most recently, the creation of g roundbreak ing premium casino content like its award-winning, glassesfree 3D innovation, SPHINX 3D. COMPLEMENTARY BUSINESSES
This spring, GTECH completed its $6.4-billion merger with IGT, creating a global leader in gaming across all channels and regulated segments. The company’s new name and logo, marr y ing the IGT name and the iconic GTECH globe, were chosen to ref lect the joining of two highly complementary legacy businesses into a winning combination. “Regulated gaming clients across both the government and private 36 | Summer 2015
sectors are seeking reliable, secure and innovative ways to increase revenue and drive profitability, and IGT is the trusted go-to partner in this space,” said Marco Sala, CEO of IGT. “We will provide top performing content across multiple platforms, enabling players to experience their favorite games across all regulated segments and channels, all with our unwavering Customer First approach. With a truly global reach, we will share expertise and experience both geographically and across market segments.” Today, IGT is leveraging a wealth of premium content , subst a ntia l investment in innovation, in-depth customer intelligence, operational expertise, and leading-edge technology, so that its solutions anticipate the demands of consumers wherever they decide to play. IGT has a wellestablished presence in Canada, with off ices in Moncton and Toronto, and has cultivated relationships with governments and regulators in more than 100 countries around the world. Its headquarters are in London, U.K., and its operating headquarters are in Las Vegas, Nevada; Providence, Rhode Island; and Rome, Italy. In 2014, it generated approximately $6 billion in revenues, and has approximately 13,000 employees worldwide.
corporateprofile
MARCO SALA, CEO, IGT WHAT’S NEXT FOR CANADIAN CUSTOMERS
Customers are seeking growth beyond their traditional programs. They recognize that to expand their player base, they need to widen their offerings and provide them on the channels players prefer, whether on land-based, interactive, or mobile. Omnichannel content is critical to their success. With the foundation of IGT’s industryleading portfolio, the company has a library of content that surpasses any other in the industry – featuring tried-andtrue core player favorites and instantly recognizable, entertaining licensed titles like Wheel of Fortune and Bejeweled. The ability to port this proven content across new platforms and channels will ensure existing and new players will be able to connect with the titles they enjoy. Both legacy companies have long histories and extensive capabilities in systems; the merger enhances IGT’s systems offering, providing customers with a systems portfolio that enables a 360-degree view of their players. In addition, the legacy GTECH business’ experience as a B2C operator creates a greater understanding of players’ needs and desires. LOTTERY FOCUS
IGT employs the best solutions in the market to grow lotteries. Its approach is to responsibly drive the business, and we tailor our level of support based on the needs of each individual customer. The company’s commitment to lottery remains steadfast; the dedicated lottery staff in marketing, technology, and operations w ill remain focused on the lotter y business. The cross-fertilization of games and game content (particularly instant lottery games) between lottery, VLT, and
casino will also be a significant benefit to lottery customers. More governments are turning to a lottery manager/operator model to maximize profits and generate more money for good causes. IGT has the industry’s most extensive and proven lotter y management capabilities, operating the world’s largest lottery in Italy through the Lottomatica brand, and managing other operator contracts in the U.S., Europe, and Latin America. In all gaming segments, interactive and mobile gaming hold tremendous promise for the future. IGT Interactive is leadi n g t he way by en abli n g operators to attract new players, expand marketing reach and bring in new revenues. Today in Canada, IGT provides iLottery products such as online ticket purchases, runs the country’s only legal and official poker and bingo networks, and provides the best-performing content like Rich Girl and Cleopatra. IGT’s interactive portfolio uniquely offers a range of solutions from complete interactive systems of platforms, game content and managed services to individual modules in any combination an operator requires.
IGT ’s c ro s s - ch a n nel pro duc t portfolio includes the option for advanced Responsible Gambling (RG) features, including deposit limits, loss and time limits for play, purchase limits, cooling-off periods following requested limit increases, self-assessment tests, risk profiles, RG messages with the amount of messaging customized to the player’s level of assessed risk, and self-exclusion. Most critically, customer service remains the company’s top priority. IGT is, and will always be, a “customer first” company, putting the customer at the center of everything it does. Overall, this merger is about much more than expanding IGT’s scale. The combined entity is in the best position to respond to its customers’ needs today and in the future — where content is truly the driver of performance, and where players are seeking the most entertaining games anytime, anywhere, on any device. For more information, visit www.igt.com.
SERVICE, INTEGRITY, RESPONSIBILITY
IGT creates value by adhering to the highest standards of service, integrity, and responsibility. IGT’s Corporate Social Responsibility initiatives are built on the foundation of being a good corporate citizen and a responsible business partner. IGT has always been focused on the cultural and social issues that affect the industry. Canadian Gaming Business | 37
executiveq&a
STEPHEN
RIGBY
President and CEO, Ontario Lottery and Gaming Corporation
Since joining OLG as the new President and CEO in January, 2015, Stephen Rigby has been working to lead the implementation of OLG's renewal and to strengthen Ontario's lottery and gaming industry. For the preceding three and a half years, Rigby was the National Security Advisor to the Prime Minister of Canada, where he was responsible for providing strategic policy and operational advice on matters of national security, foreign and defence policy issues. AS A 30-YEAR CAREER civil servant, Rigby has extensive experience leading and working in organizations undergoing substantial transformation. The positions he held at the Canada Revenue Agency and the Canada Border Service Agency gave him signif icant experience in broad-based service delivery, long-term corporate direction and large-scale change management. Canadian Gaming Business recently asked Rigby about the challenges of his new role with OLG and its place in the Canadian gaming industry. ALTHOUGH YOU HAVE BEEN IN YOUR NEW ROLE AT OLG FOR A FEW MONTHS NOW, WHAT WERE YOUR INITIAL IMPRESSIONS OF THE CANADIAN GAMING INDUSTRY AND WHAT AREAS DO YOU ANTICIPATE WILL BE THE MOST CHALLENGING FOR YOU PERSONALLY?
When you think of the gaming business, you think of entertainment. You reflect 38 | Summer 2015
on it as you see it through movies or TV. In reality, the complexity of this business is quite profound— t he m at hem at ics of g a m i n g , t he i nt r i c a c i e s o f l o t t e r i e s — t h i s i s something I never fully understood and it’s been a truly eye-opening experience for me. However t he ch a lleng e for me does not lie solely in the complexity o f t h e g a m i n g i n d u s t r y. T h e ch a l len g e i s i n r u n n i n g a l a r g e organization such as OLG that is going through a complex change agenda. I had a 35 -year career in the federal public service and some of my best ex periences in Ottawa were r u n n i n g a nd t r a n sfor m i n g large organizations. In that context, O L G ’s m o d e r n i z a t i o n w a s a n extremely attractive opportunity for me that I couldn’t turn down.
IN WHAT WAYS HAS YOUR PAST EXPERIENCE IN THE PUBLIC SERVICE PREPARED YOU FOR YOUR ROLE AT OLG?
Having had the great privilege of serving as National Security Adviser to the Prime Minister of Canada, the lion’s share of my three decades in the federal public service was in operational and leadership roles at the Canada Revenue Agency and Canada Border Service Agency. These organizations were undergoing substantial transformation and that gave me experience in broad-based service delivery, long-term corporate direction and large-scale change management. This exactly what OLG is going through now. Modernization is an opportunity for OLG to be a pathf inder and a great example of public/private sector partnership. I fundamentally believe in this and I know we can do it successfully.
executiveq&a
WHAT’S YOUR VISION FOR THE FUTURE OF OLG AND GAMING IN ONTARIO?
OLG has been ver y clear over that last couple of years as to why we are undertaking the massive modernization of lot ter y a nd g a ming in Ont a r io. OL G’s c u r rent bu si ne s s mo del i s not sustainable over the long term. Modernization of lottery and gaming is based on improving the customer ex perience in an eff icient operating manner. To achieve this, we are focusing on three priorities: Becoming more customer-focused. Being where customers are, offering products and services in their respective areas or in the ways they want them. OLG’s current terminal technolog y limits w here lot t er y t ick et s c a n b e s old and is not suited to adapt to current shopping patterns. That is why OLG is recommending the ex pansion of lottery retail options to include multilane sales in super markets and big box stores, the Internet and mobile devices, while continuing to support the ex isting retailer net work. A lso, OLG has joined other provinces by now offering the sale of lottery tickets on-line t h roug h ou r new inter net gaming site, PlayOLG. Selecting qualified service providers for the specific day-to-day operations of lottery and gaming. This is aimed at reducing
public investment required for lottery and g aming infrastructure. For example, our lottery terminal network needs to be updated and the ser vice provider would be tasked to with this upgrade. On the gaming side, OLG has proposed the four new gaming facilities across Ontario and the service providers will be building these sites.
Renew OLG’s role in the management of lottery and gaming in the province. OLG
will become a leaner, more focused organization, responsible for the conduct and management of lottery and gaming and pursuing a gold standard for our Responsible Gambling (RG) program. The goal of all of this is to increase our contribution to the province by
continuing to help create jobs, and trigger private investment across Ontario. O n a p er s on a l not e, w it hout reservation, this is the most complex transformation I have seen in my 35-year career. Ultimately, what I bring to this is a sense of pragmatism and realism. My job is to come in, provide some different perspectives, a clear sense of unified and consistent leadership and make sure we are linking up properly with government and everyone else who is involved in this process. WHAT PRODUCT AND SERVICE OFFERINGS DOES OLG CURRENTLY BRING TO THE INDUSTRY?
OLG’s core products and services revolve around our biggest sources of revenue, a variety of exciting and engaging lottery games, along with an excellent customer experience at our slots and casinos. In the last fiscal year, our lottery bu si n e s s o f fer e d c u s t o m er s 19 terminal-based lotter y and sports games, including LOTTO MA X, a newly refreshed LOTTO 6/49 game, a nd severa l reg iona l interact ive Wa t ch - n -W i n g a m e s s u ch a s POK ER LOTTO and WHEEL OF FORTUNE. We also offer almost 80 INSTANT lottery games. For the second year in row, we achieved over $1 billion in sales. On the gaming side, OLG owns and operates f ive casinos, operates 14 slot facilities at Ontario horse racetracks and conducts and manages four resor t ca sinos – Caesa rs W indsor, Ca sino R a m a , Ca sino Nia g a ra a nd Nia g a ra Fa l ls v iew Ca si no Re sor t . T he se sit e s a re operated, under contract by private operating companies. OLG also owns and maintains authority over the slot machine facility located within the Great Blue Heron Charity Casino. In January 2015, OLG launched its Internet gaming site, PlayOLG.ca. It is a safe and regulated alternative to grey market websites for legal-aged adults in Ontario.
In addition to our core lotter y a n d g a m i n g pr o du c t s , OL G i s a lso involved in a mult i-yea r revitalization initiative w ith the p r o v i n c e ’s C h a r it a bl e G a m i n g industry. Together with the Ontario Charitable Gaming Association and the Commercial Gaming Association of Ontario, OLG has been developing a unique customer entertainment ex perience and introducing new products and technologies to current bingo facilities. ALONG WITH THE INTRODUCTION OF PLAYOLG, WHAT HAVE BEEN SOME OF OLG’S MOST RECENT DEVELOPMENTS AND HOW WILL THEY LEAD YOUR ORGANIZATION TO FURTHER SUCCESS?
OL G is under t a k ing t wo major initiatives that will have a positive impact on our future in the gaming industr y: A new Gaming Management System and integrating horse racing into the prov incial gaming strategy. In regards to the f irst initiative, the gaming industry knows that the “central ner vous system” for any land-based gaming is the Gaming M a n a g ement Sy st em (GM S). OLG currently uses a legacy GMS c a l le d C a si noL i n k . It m a n a g e s more than 12 , 30 0 slot machines at OLG’s slots and casino facilities across the Ontario and has been in use since 1998. At the time OLG adopted Ca sinoLin k , it wa s the only centralized, multi-site GMS available. However, CasinoLink has not kept pace with the needs of the gaming industry, making it difficult for OLG to both serve its customer base and grow its gaming business. Once OLG announced its mo der n i z at ion pl a n i n 2 012 , it was also time bring GMS into the mo der n a g e. A s OL G lo ok s t o private sector service providers to manage day-to-day operations at our gaming sites, the various service providers will be able to maintain their ow n GMS at their g aming sit es a nd c a n lau nch t hei r ow n loyalty rewards programs. However, Canadian Gaming Business | 39
executiveq&a both are required to be compatible with OLG’s future central GMS. Integrating all ser vice provider Gaming Management Systems with OLG’s future central GMS is critical for OLG’s “conduct and manage” role and enhanced Responsible Gambling (RG) platform, both of which are key components of a modernized OLG. The second initiative involves integrating horse racing into the provincial gaming strategy. OLG and the horse racing industry are working together to create a strategic, long-term plan for a future of profitable growth for the industry that will: • Build the customer base by broadening public interest in horse racing • Create and grow new revenue for both OLG and the industry • Establish effective relationships between the government, the industry and its regulators. The industry has a lot to contribute to the province’s gaming strategy—available facilities, existing customers and the name recognition of internationally known horse races like the annual Queen’s Plate at Woodbine Racetrack. OLG is providing provincial support to assist in the growth and sustainability of horse racing in Ontario by: • Helping the industry build the capacity and structure needed for self-governance • Increasing the public profile of horse racing, including the development of horse-themed products
• Sharing its expertise and helping to direct the industry to adopt a Responsible Gambling program There is a strong future for horse racing in Ontario and supporting integration is the first step to building a longterm, stable industry for future generations. WHAT’S YOUR PHILOSOPHY FOR DELIVERING THE BEST GAMING EXPERIENCE FOR THE CUSTOMER, YOUR ORGANIZATION, GOVERNMENT STAKEHOLDERS AND THE GAMING COMMUNITY?
OLG is in a very competitive entertainment environment. Ensuring the customer has a great experience, whether they are playing one of our lottery games, spending time in one of our casinos, or interacting online with PlayOLG, is ultimately the key to our success. We have to listen to customers, anticipate their needs, and provide exciting and innovative games. As mentioned, our new GMS initiative will be an important factor in helping with the continuous improvements to customer service especially in land-based gaming. We also believe and have invested a lot of resources in extensive customer service training for our employees and the thousands of independent lottery retailers. They understand the focus has to be on the customer. Also our on-going commitment to responsible gambling is for OLG an important extension of good customer service. We provide our customers the resources and the tools to play our games in a safe and healthy way.
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“Where the Canadian Gaming Industry Meets”
June 13-15, 2016
Ottawa Convention Centre • Ottawa, ON Casino du Lac-Leamy • Gatineau, QC
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GREY ROCK CASINO A passion for entertainment The Grey Rock Casino, located in the Grey Rock Entertainment Centre on the Madawaska Maliseet First Nation (MMFN), near Edmundston, N.B., is the result of the vision of owner John Bernard after he had built a much smaller site in 2007 called the Madawaska Entertainment Centre consisting of a modest 35 slot machines.
THE MEC BECAME an almost instant success but was severely limited due to its size and location off the local beaten path. Bernard was convinced that if he could build a much bigger, more splendid place along the very stretch of highway that millions of cars used each year when visiting Atlantic Canada from the rest of the country, then perhaps it would truly blossom. While the seeds of Bernard’s vision were germinating, the MMFN had developed a Power Centre of over 75 acres of prime land right off the Trans-Canada highway which has been dubbed the “Gateway to Atlantic Canada” due to it being the main route in and out of Atlantic Canada. The MMFN named the facility the 42 | Summer 2015
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Grey Rock Power Centre (to later include the appropriately named Grey Rock Casino). Bernard’s vision was centered on a new facility with multiple restaurants and huge, strategically designed bingo halls separated by glass walls so that smokers and non-smokers alike could enjoy a few hours of bingo without complaint. The building also was designed with a multi-million-dollar, state-of-the-art ventilation system that would ensure both smokers and nonsmokers alike would be comfortable. The Grey Rock Casino was designed from the ground up to be a gaming centre with raised f loors and open and drop ceilings. Plenty of power was brought into the building with a UPS system to ensure maximum uptime. The Grey Rock is the very first fully Sbx Ser ver based system built in Canada. All of its IGT cabinets are able to download over 200 different games at a moment’s notice allowing its clients maximum enjoyment. This technolog y required the very best in data network servers, routers and infrastructure to ensure full capacity. COLLABORATIVE SPIRIT
T he big g est ch a l len g e B er n a rd addressed in moving the Grey Rock Entertainment Centre from an idea to reality was the need to bring the provincial government and Casino New Brunswick together. Bernard wanted to not only have them agree for the Centre to open, but to do so with their complete blessing and support. Casino New Brunswick has an agreement with the province that restr icts the number of g aming centres and games in the province. Neither the province, nor the casino could change the contract without negotiating with the other. Bernard says he had to find a way to convince both the Casino and the province that the Grey Rock Entertainment Centre was a good thing for the province in terms of revenue and jobs and that the new entertainment centre would just
enhance the business of the Casino New Brunswick. After much negotiation, Bernard was able to bring both parties on board. Casino New Brunswick has partnered with the Grey Rock Entertainment Centre to provide advice and guidance on the set up and operation of the casino while the province provided the necessary approvals and licences. In return, the Grey Rock Entertainment Centre will provide up to 150 new jobs in the area and will provide revenue to the province - revenue that may be used by the province to help other First Nations communities in New Brunswick. For more information, visit www.greyrock-casino.ca
marketing
MARKETING LOCAL Launching the underdog local property — and winning
BY LESLEY DIKEOS
Opening a property in a mature market with two much larger national casinos as the competition is surely a daunting challenge. But with the right strategy, a keen understanding of the population and a single overpowering idea, it can beat the odds. WHEN MIAMI VALLEY GAMING planned the launch of a new racino, they had to quickly burrow to the core of life along Ohio’s Miami River, halfway bet ween Day ton and Cincinnati. Both of these Midwestern U.S. cities, only an hour apart, had established casinos with national brand names, and Miami Valley Gaming was due to open halfway between. Knowing the market and appealing to its unique ethos would be the key to setting Miami Valley apart from the competition. Ohioans see themselves as unique. They’re f iercely loyal to all things 44 | Summer 2015
Ohio. The issue for Miami Valley was how to launch a smaller, local casino to this astute, shrewd and locally faithful audience amid the aggressive marketing efforts of established national brands, Horseshoe and Holly wood. Those properties had more amenities like table games, universal rewards cards, hotels, entertainment, and with national ad budgets. Succeeding with a slots-only property while sandwiched between two big brands required a launch that would not only stand out, but change the established behavior of local patrons to favour Miami Valley.
UNDER THE LOCAL MICROSCOPE
Success would come from playing on that legendary Ohio independence, uniqueness and their f ierce love of all thing s Ohioan. “Buying local” works for other commodities, but could it be effectively translated to gaming, particularly when the competition was bigger and located in the two closest major urban markets? The stakes were too high to guess, so rigorous research was essential. One-onone interviews were conducted, focus groups convened and deep market analysis undertaken before it was decided that local would indeed work.
marketing Being local means mirroring and extolling the personality of the region — a personality that is welcoming, entertaining, exciting and yet still hometown. It would be the special qualities of Ohio that would be the attraction. It was that one central idea, that single theme, that would influence every aspect of the campaign that would make the difference. It started with the foundation of that devoted Ohio identity. Even people far afield from Ohio know it’s The Buckeye State, and many Ohioans even refer to themselves as buckeyes, so it was decided that Miami Valley should be Ohio’s casino and the buckeye would play a central role. CREATING A BRAND IDENTITY
A brand identity was created with a multi-disciplined campaign featuring two affable characters representing a fictitious company that Miami Valley called the Lucky Buckeye Company. A central part of the Ohio identity is the lore that their state symbol, the buckeye nut, is a lucky charm to be kept in your pocket. The two characters from the Lucky Buckeye Company would screen all the buckeyes in the state to ensure that only the luckiest ones could be found at Miami Valley. Within a month of the opening, thousands of buckeyes were distributed as part of the campaign to reinforce the Ohio local theme. Miami Valley actually ran out. It was so popular that eventually the entire Buckeye State ran out of buckeyes. Neighboring states were raided to replenish the supply. The shortage created such a buzz that it received substantial media coverage, not just locally, but nationally. Having a lucky buckeye became a point of pride for Miami Valley patrons. That single local message was reinforced in a fun and exciting manner that touched the consumer in ways the competitors from out of state just couldn’t.
The buckeyes, the communit y involvement and the “regular local guys” who were featured in the campaign all shouted one thing no matter the medium – this is Ohio’s casino. This is the friendly, fun, hometown place. It worked. Miami Valley Gaming is performing well above its size and location. It has the highest revenue per slot in the entire region. Miami Valley overcame the head start of the bigger outsiders and made local “lovable.” It gave consumers from
Dayton and Cincinnati a reason to meet halfway. Using every communication tool available, it was the one big idea, the central theme, that encouraged patrons to play locally – to play at the Ohio casino that knows Ohioans. Lesley Dikeos is a senior team member at the marketing firm of Marshall Fenn, the agency of record for Miami Valley Gaming, as well as other properties across North America. For more information, visit www.marshall-fenn.com.
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MULTI-TIERED CAMPAIGN
While the single theme and the Lucky Buckeye Company advertising campaign was undeniably a success, it was the multidimensional campaign that included social media, media relations, community relations and promotions that expanded the message to reach multiple audiences from many directions. Helping local charities, hosting community events, supporting local events with more than a cash donation and sitting on community boards reinforced the local message and feel.
SAS and all other SAS Institute Inc. product or service names are registered trademarks or trademarks of SAS Institute Inc. in the USA and other countries. ® indicates USA registration. Other brand and product names are trademarks of their respective companies. © 2015 SAS Institute Inc. All rights reserved. S139396US.0515
Canadian Gaming Business | 45
foodandbeverage
DESTINATION
DINING
Food and beverage trends and the Canadian gaming industry BY JEFF DOVER
Food and beverage offerings in casinos have changed. Once considered an amenity to attract gamers to casinos and, when they got to the casino, to extend their length of stay, food and beverage offerings and other non-gaming amenities have become a source for profit maximization.
46 | Summer 2015
T O DAY, N O N - G A M I N G a m e n i t i e s including foodservice represent from 26 to 60 per cent of revenues for the largest casino operators. According to the Las Vegas Convention and Visitors Authorit y, visitors to Las Vegas in 2014 spent $282 per trip on average on food and beverage, which represents 53.2 per cent of t he avera g e spend on g a mbli n g. Moreover, spending on food and beverage is growing at a much faster pa ce t h a n sp end i n g on g a m i n g. Spending on non-gaming amenities in Las Vegas has exceeded gaming revenue since 1999. In the early days of casino gaming i n C a n a d a , m a n y ju r i s d i c t i o n s hoped to generate economic impact from tourist visits to casinos. Not sur pr isingly, this did not occur. Fe w C a n a d i a n c a s i n o s h a d t h e non-g a ming a menities to at t ract visitors from outside the local area.
Further, gaming has expanded rapidly across North America and the world. Ver y few jurisdictions have become gaming destinations. “Locals” make up the significant portion of gamblers at domestic casinos and, as they live close by, do not need to use casino restaurants. Casino food and beverage offerings must attract these patrons to the restaurants. Equally as important, casino food and beverage offerings must leave patrons wanting to return. Mediocre food or ser vice becomes a r i sk i n t er m s of comp et i n g for consumer entertainment dollars. DIFFICULT TO PLEASE
T h e e nt e r t a i n m e nt i n du s t r y h a s conditioned casino patrons to expect high- end, compliment ar y food a nd bevera g e. These ex pec t at ions h a ve c r e at e d qu a l it y a n d s er v ic e ex pect at ions w ith respect to food and beverage offerings at casinos that
foodandbeverage cannot be easily met at price points acceptable to these patrons. Casino food a nd bevera g e ma na g ers a re constantly challenged in meeting gamer demands. Value is important in casino environments. A c a si no’s fo o d a n d b e ver a g e program should be designed with four goals in mind: • Provide a qualit y ex perience for diners; • Attract destination dining demand to the casino restaurants, which prov ides an oppor tunit y to generate gaming demand; • Extend the length of stay of casino patrons thereby increasing gaming spend; and • P r o v i d e a f u r t h e r r e a s o n f o r patrons to revisit. Ca sino pat rons a re t y pica lly a diverse group. Many casinos often try to be everything to everybody in their foodservice outlets. Such positioning will not attract destination gamers to the casino. Foodservice industry t r en d s , h o w e v er, pr o v i d e s o m e clues as to how to position casino foodservices. THE MOVE TO FAST CASUAL
Consider the movement from casual restaurants (think Swiss Chalet) to fast casual (think Five Guys Burgers a nd Fr ies a nd Chipotle Mex ica n G r i l l ). F a s t c a s u a l r e s t a u r a n t s generate similar average store sales to casual restaurants but do so with a smaller foot pr int w ith a lesser staff complement. Several Canadian casinos are contemplating fast casual outlets. The NPD Group tells us that on average, Canadians eat at restaurants 207 times per year. W hile that is significant, it is 10 fewer visits than a year ago or 72 million fewer visits. In 2 014, only young adult s a ged 18 to 24 increased their frequency of r e s t au r a nt v i sit . T h i s you n g adult group (and Millennials) are frequent restaurant diners; however, restaurant tastes and ex periences sought by this demographic group are much different than those of the next largest group of restaurant patrons, Baby Boomers. The challenge for casino operators is many of their core clientele are Baby Boomers while they are targeting Millennials for the
future of the industry. Millennials represented 28 per cent of total restaurant visits in Canada in 2014, more than any other group (Baby Boomers represented 27 per cent of total restaurant visits). MENU INNOVATION IS KEY
As restaurant visits are relatively f lat (projected to increase by about 1 per cent per year), restaurants are at tempting to steal share from competitors through menu i n n o v a t i o n . T h e N PD G r ou p i n d i c a t e s t h a t 31 p e r c e nt o f Canadian restaurant consumers look forward to trying new things a nd that 2 2 per cent w ill t r y a restaurant because of unique menu items. For casino restaurants, this means regular, limited-time-offer, menu specials to drive demand to the restaurants. These specials must be communicated to gamers th roug h the loya lt y prog ra m but also to the public at large to generate destination rest aurant demand. T h a n k s t o t r a v el , t h e Fo o d Network, etc., consumers are well educat ed. They, especia lly t he Millennials, demand authenticity in food items. Ethnic foods are increasingly popula r; however, they must be authentic as opposed to the Canadianized dishes that were accept able in the past. Consumers a lso wa nt to k now about a restaurant’s ethics. For c a si no s , t h i s me a n s prepa r i n g fo o d f rom s c r at ch u si n g lo c a l foods and authentic recipes. Many rest aurants are communicating t hei r env i ron ment a l prac t ices, food sourcing and clean ingredient decks and this trend is likely to continue. Casinos need to ensure sound environmental and ethical pr a c t ic e s i n t hei r fo o d s er v ic e operations and communicate these practices to their clientele a nd potential clientele. EMBRACING TECHNOLOGY
Technolog y is changing the way restaurants operate. Restaurants now have mobile apps, ordering kiosks and tablets available to place orders. Technolog y is being used to attract restaurant customers.
Perhaps an app allowing patrons to place an order at a restaurant from the gaming f loor combined w ith a tex t message when it is time to come to the restaurant to eat would be popula r, especially w ith the key younger demog raphic. Millennials embrace the introduction of technology to restaurants especially when it provides a convenience and the chance to customize orders, has a loyalty program and provides information on deals and specials. A nother key trend is prov iding healthier items. In Canada, over half the population is overweight or obese. Time famine means that Canadians eat out more often than in the past. F o r r e s t a u r a nt s , i n clu d i n g c a s i n o rest aura nt s, healthy options on the menu are required for a sig nif icant percent age of the potential market. W here a vegetarian menu option was sufficient 20 years ago, operators today must provide options for a variet y of dietary needs. The three square meals a day that we grew up with is no more. The fastest growing meal periods in restaurants are morning and evening snack. Consumers, again especially Millennials, want to eat what they want, when they want it and where they want it. In conclusion, one of the g reatest challenge facing casino operators is attracting younger demographics. These consumers, however, desire a different dining ex perience than their parents (many of whom fit the demographic of the core Canadian gamer). Providing an exciting, authentic, customizable and ethical dining ex perience will be the key to attracting Millennials to casino restaurants. Jeff Dover is a Principal with fsSTRATEGY, an alliance of senior consultants focusing on business strategy support - research, analysis, innovation and implementation - for the foodservice industry. Their team has extensive consulting experience in foodservice across Canada. They also offer international experience, having worked in the United States, Australia, South America, Africa and Europe. The fsSTRATEGY team is unique in that they provide service to all foodservice sectors (restaurants, attractions, hotels and resorts, gaming establishments and institutions) and all levels of the foodservice supply chain (growers, processors, distributors and operators). For more information, visit www.fsstrategy.com. Canadian Gaming Business | 47
The Canadian Gaming Industry Awards
Introducing 2015’s Award Winners
Each year, the Canadian gaming community honours the successes and achievements of leaders within its industry. In 2015, one individual has been selected to receive the Industry Leadership and Outstanding Contribution Award: Tom Marinelli, (retired) former acting President and CEO of Ontario Lottery and Gaming Corporation. Tom Marinelli Industry Leadership and Outstanding Contribution
Tom Marinelli ser ved OLG w ith distinction for more than two full d e c a d e s pr i o r t o h i s retirement on January 30, 2015. To m b e g a n h i s c a r e e r i n t h e gaming industry in the fall of 1991 when he was hired for an IT role in his hometown of Sault Ste. Marie. His employer, the Ontario Lottery C or porat ion, wa s st ill relat ively new to the northern Ontario cit y but it had already made a lasting impression on Tom. “ W hen I w a s co a ch i n g m i nor hockey, I took my team around to different rinks up north. You'd walk in and there would almost always be a plaque on the wall that said the arena was built with the proceeds from Ont a r io lot ter ies. I a lways thought to myself that would be a great place to work and a great thing to do,” recalls Tom. 48 | Summer 2015
To m ' s r i s e t h r o u g h t h e org a n i z at ion c u l m i n at ed i n t wo different terms as Acting President and CEO, each lasting 11 months apiece. Along the way, Tom became one of t he ra re i nd iv idu a ls t h at accrued operational ex perience in each of OLG's lines of business: L o t t e r y, c a s i n o s a n d s l o t s a n d ch a r it able a nd I nt er net g a m i n g. A nd a s the a genc y's long-time Chief In for mation Of f icer he also understood the technological pl at for m t h at m a de a l l of t he se games work. “As a professional engineer, I was always interested in how technology in some cases was the product while in other cases it was the distribution of a product ,” says Tom. “B eing involved in apply ing tech nolog y to this industry allowed me to stay current in my chosen vocation but more impor t antly allowed me to have a deep understanding of the gaming business.”
O v e r t h e y e a r s , To m g a i n e d a reput ation as a hard-work ing i n d i v i du a l w h o w a s u n f a i l i n g i n g iving of himself to his employees t h roug h k i nd words, suppor t a nd encouragement. “To receive this prestigious award a f t er 2 3 y e a r s i n t h i s f a s t - p a c e d industr y, is recognition of the great work the indiv iduals at OLG have accomplished in shaping this industry during my tenure,” says Tom. “It is a great way to top off my career at OLG. “Our industry is like no other, we work together to deliver economic and employment benef its to each of our provinces. I want to particularly t h a n k my f a m i l y, my son T J, my daughter Sarah and my wife Susan. Their support, encouragement and u nder st a nd i n g m a de t he g re at e st difference for me at all points in my career.”
firstnations
First Nation Canadian Gaming Awards First Nations gaming plays a key role in the growth and development of First Nations communities by providing a significant source of revenue and employment opportunities to First Nations people across Canada. In recognition of this vibrant part of the Canadian gaming industry, the First Nation Canadian Gaming Awards were created to showcase some of the many First Nations individuals who have contributed positively to the gaming industry, as well as to honour the leaders and role models within the First Nations community.
Congratulations to the following recipients and a special thank you to the 2015 award sponsors:
Employee of the Year
Leadership Award
Tanya Young Cree First Nation, Thunderchild Saskatchewan Security Supervisor, Great Blue Heron Charity Casino
Daniel Shilling Chippewas of Rama First Nation First Nations Manager, CAO, Board Member, St. Eugene Golf Resort and Casino
As Security Supervisor at the Great Blue Heron Charity Casino near Peterborough, Ontario, Tanya Young’s superior interpersonal skills, outgoing personality and positive attitude have been cited as among her greatest assets in creating a pleasurable and safe work environment for both guests and staff. An employee of Great Blue Heron since 2001, Tanya has become well respected for her ability to make appropriate decisions in stressful situations and has remained calm, courteous and sensitive when responding to challenging situations and when communicating with guests. “Tanya is always positive,” says Dale Jordan, Security Manager, Great Blue Heron Casino. “She is very supportive when someone has an idea or shows initiative and is a great example to everyone in the Security Department.” A mother of two young daughters, Tanya is a graduate of the Police Foundations Program at Sir Sandford Fleming College and has received several previous awards from her employer for her exemplary service and dedication to guest security and safety, including an outstanding ability to detect self-excluded patrons on the property. “This distinction means a lot to me because it celebrates my efforts as well as my heritage as a First Nation employee,” says Tanya. “I was flattered to be nominated for this award amongst my peers, and to be recognized on a national level is an incredible honour and achievement. “I am most grateful for the training and opportunities my employment at the Great Blue Heron Casino has provided me. My past accomplishments have demonstrated to me that hard work and dedication are essential qualities to succeed. Applying these qualities have helped shape my successful career at the Great Blue Heron Casino.”
Dan Shilling has held the position of First Nation Manager and Chief Administration Officer for the Chippewas of Rama First Nation since March, 1995. In 2004, Rama First Nation partnered with the Samson Cree First Nation and Ktunaxa Nation of British Columbia in the operation of the St. Eugene Golf Resort and Casino on the outskirts of Cranbrook, B.C. Dan served as the SEM President and Chair of the Board of Directors for the first six years of this joint venture and is currently serving as Board Member and Secretary/Treasurer. According to Sandra Van Steijn, General Manager of the St. Eugene Resort and Casino, Dan was instrumental in developing the partnership. “Although residing on the other side of Canada, Dan is readily available to the team at St. Eugene Golf Resort and Casino in his role as board member,” says Sandra. When he is not busy working with a multitude of boards and First Nations community organizations, Dan enjoys golf, lacrosse and spending time with his family. He says he is grateful for all of the benefits that gaming has brought to his community, thanks to the Casino Rama and St. Eugene projects. “When I started in the this industry there was a lot of negativity that went with gaming. But I’ve learned that — and my First Nations community is a prime example —you can truly benefit from gaming in the community if it is managed properly,” says Dan. “I would like to thank my past chiefs and councils, the wonderful men and women of the St. Eugene mission and two people who have been a godsend to me, Jeffery Hewitt and Rick Morano. And, of course I have to thank my wife. When the St. Eugene project was first starting, I was going out there one week every month and my wife picked up the ball for our family while I was away. I am grateful that she supported me in my endeavours.”
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From kiosk to slot machine… seamless and entertaining. 7250 S. Tenaya Way, Suite 100, Las Vegas, NV 89113 | Learn more at: gcainc.com | Find us on: 52 | Summer 2015