Dedicated coverage of gaming in the Americas
Jan/Feb 2024
BACK IN FASHION The Fontainebleau Las Vegas' doors are finally open! Gaming America speaks exclusively to property executives about its launch
GAMING AMERICA ON THE MOVE: Our reporters cover two brand new casino openings IN-DEPTH INTERVIEWS: In conversation with executives in Vegas & lawyers in Florida HOT TOPICS: Analysis and opinion on sports betting, online slots and more
COO, EDITOR IN CHIEF Julian Perry STAFF WRITERS Stephanie Feeley, Beth Turner, Ciaran McLoughlin, Jessica Lynn, Laura Mack, Brian Joseph LEAD DESIGNER Olesya Adamska DESIGNER Christian Quiling DESIGN ASSISTANTS Gabriela Baleva, Abbie Monk, Nia Marinova
EDITOR’S LETTER
ILLUSTRATOR Maria Yanchovichina MARKETING & EVENTS MANAGER Mariya Savova FINANCE AND ADMINISTRATION ASSISTANT Dhruvika Patel PRODUCTION CONTROLLER Phoebe Petford IT MANAGER Tom Powling COMMERCIAL DIRECTOR Deepak Malkani Deepak@playerspublishing.com Tel: +44 (0)207 729 6279 SENIOR U.S. BUSINESS DEVELOPMENT MANAGER Aaron Harvey Aaron.Harvey@playerspublishing.com Tel: +1 702 425 7818 ADVERTISING SALES EXECUTIVES Ariel Greenberg Ariel.Greenberg@playerspublishing.com Tel: +1 702 833 9581 SENIOR ACCOUNT MANAGER Michael Juqula Michael.Juqula@gamblinginsider.com Tel: +44 (0)203 487 0498 ACCOUNT MANAGERS William Aderele William.Aderele@gamblinginsider.com Tel: +44 (0)207 739 2062 Irina Litvinova Irina.Litvinova@gamblinginsider.com Tel: +44 (0)207 613 5863 Serena Kwong Serena.Kwong@gamblinginsider.com Tel: +44 (0)203 435 5628 BUSINESS DEVELOPMENT MANAGER Michele Brooks Michele.Brooks@globalgamingawards.com Tel: +44 (0) 207 739 5768 CREDIT MANAGER Rachel Voit WITH THANKS TO: Andre Carrier, Kristine E Marcilio, Leen Al-Alami, Daniel C. Silva, Jarod Baker, Colleen Birch, Mark Tricano, Paul Burns, Kevin Dennis, Oliver Niner, Oliver Lovat, James Horvath, Simon Hammon, Tim Minard, Robert Jarvis and Jean Venneman Gaming America magazine ISSN 2632-766X Produced and published by Players Publishing Ltd
All material is strictly copyrighted and all rights reserved. Reproduction without permission is forbidden. Every care is taken in compiling the contents of Gaming America but we assume no responsibility for the effects arising therefrom. The views expressed are not necessarily those of the publisher.
Creating a team is easy. It’s building the right one – and keeping it together – that presents challenges. Having the right team in business, and indeed in sport, theater or any other walk of life, can be the difference between tremendous success and abject failure. It can create solutions, rather than solve problems. It can even be the difference between loving or hating what you do for a living. Of course, this inevitably leads to the concept of trial and error. Almost like hitting the jackpot on a Buffalo slot machine or drawing four of a kind in Texas hold’em, the odds are against one achieving instant, fortuitous success. So sometimes executives have to persevere, as unsuccessful teams come and go. Sometimes entrepreneurs have to persist, as unsuccessful businesses come and go. And sometimes casinos have to be unrelenting, as financial and regulatory hurdles get thrown their way on an equally unrelenting basis. While these are all general ideas, applicable industry wide, there is one particular property that knows these life lessons better than most – the Fontainebleau Las Vegas, which after years of delay (as well as executive turnover) finally celebrated its grand opening in December 2023. Gaming America was in attendance as Cher, Justin Timberlake and more presented a luxurious new Las Vegas Strip property to the world. But when you consider the fact that construction began in February 2007, with continual delays and an eventual cost of $3.7bn, it becomes clear Fontainebleau’s journey was no straightforward one. As such, the historic opening of the latest addition to the Las Vegas skyline gets extensive coverage in this January/February edition of Gaming America magazine. And, after such a long wait, we caught up with Mark Tricano and Colleen Birch for exclusive, in-depth interviews conducted right at the epicenter of the Fontainebleau offices. Relief and excitement are palpable in equal measure for the duo, with the new Vegas big hitter finally opening its doors. It aims to appeal to luxury travellers and VIPs – it certainly did during its opening party – and all eyes will be on how, after all this time, the Fontainebleau is able to fit into the Las Vegas jigsaw. Happy New Year to all our readers; we at Gaming America are watching keenly to see how Fontainebleau’s journey unfolds.
JULIAN PERRY,
COO, Editor-in-Chief
CHECK OUT GAMINGAMERICA.COM FOR THE BEST IN BREAKING NEWS
GAMING AMERICA | CONTENTS
22 Kristine E. Marsilio
30 Colleen Birch
8
WHAT IS THE LEGAL GAMBLING AGE?
18
IN PRAISE OF THE RENEGADE ENTREPRENEUR
10
FROM THE TOP
22
RECENT M&A AND OTHER TRANSACTIONAL ACTIVITY
12
DRAFTKINGS: A HISTORY
24
THE JUNKET CRACKDOWN
14
888: THE HIGHS AND LOWS
26
TWO NEW CASINOS IN ONE WEEK
16
HAVING A GREAT TIME ON YOUR COMPANY’S DIME
In the US, the legal gambling age is determined by various factors including: state law, casino policy and type of gaming.
With the Las Vegas Strip and Downtown both saturated and thriving, does Vegas need to think about where its next entertainment and gaming area could boom?
How does a company go from operating out of a creator’s home to becoming the 'kings' of online sports betting?
In our second timeline feature, Gaming America examines the recent ups and downs of operator 888 Holdings.
Gaming America has put together a Las Vegas survival guide to make sure you have a productive and cost-effective stay next time you are in town on business.
6 | GAMINGAMERICA
30
At Eureka's offices in Las Vegas, we speak with CEO Andre Carrier.
Kristine E. Marsilio and Leen Al-Alami from law firm Duane Morris analyze the state of M&A in today’s gaming industry, and why companies need to think wisely before committing.
Daniel C. Silva, Shareholder with Buchalter, and Jarod Baker, Co-Founder of Pacific Economics, discuss international government inquiries into money laundering at casinos.
With Vegas welcoming two new casinos, Durango and Fontainebleau Las Vegas, Gaming America investigates the thoughts and feelings of those involved and those lucky first few to walk through their doors.
RELIVING THE EXCEPTIONAL
Gaming America explores the ins and outs of the long-awaited opening of the Fontainebleau Las Vegas, the newest resort on the Las Vegas Strip.
CONTENTS | GAMING AMERICA
36 Mark Tricano
42 Paul Burns
36
REDEFINING LUXURY
54
DESIGNING FOR LONGEVITY
40
A NEW ERA
56
FRANKIE SAYS RLX
THE CURIOUS CASE OF ONTARIO
57
NOSTALGIA SELLS
58
THE QUEST FOR A COMPACT
62
PRODUCT REVIEWS
42
Fontainebleau Las Vegas President and gaming industry veteran Mark Tricano spoke exclusively to Gaming America about how the resort will set the stage after a tough act to follow in Miami Beach.
With the Mirage changing hands and the Inspire resort making waves as far out as South Korea, we explore a new era for Tribal operators.
Paul Burns and Kevin Dennis explain why Ontario is becoming a hotspot for international operators, and what we can expect going forward.
45
DETERMINING THE FUTURE
48
JAY SARNO’S LEGACY LIVES ON
Oliver Niner, Head of Sales at PandaScore, provides a deep dive into esports betting and why bullish operators can push the vertical forward.
Gaming America regular Oliver Lovat reflects on the life and times of Jay Sarno, assessing his legacy in Las Vegas and the wider gaming industry.
James Horvath, SVP of Bergman Walls Associates, describes what it was like to be part of the Fontainebleau Las Vegas’ original concept.
Relax Gaming CEO, Simon Hammon, reflects on the company’s launch into the US market as RLX Gaming.
Gaming America speak swith Eclipse Gaming CEO Tim Minard.
Robert Jarvis, Professor of Law at Florida’s Nova Southeastern University, breaks down the legal proceedings and future possibilities of the Seminole sports betting compact in Florida.
Gaming America takes a look at some of the market's newest and most exciting gaming products, including an in-depth interview with Gaming Arts from its show floor.
GAMINGAMERICA | 7
GAMING AMERICA | GAMBLING AGE
WHAT IS THE LEGAL GAMBLING AGE? In the US, the legal gambling age is determined by various factors including: state law, casino policy and type of gaming. CASINOS
OPERATOR'S CHOICE Usually state law dictates the age at which a patron can enter a casino, but Tribal properties in California change the legal age from 18 to 21 based on whether the property has an alcohol license.
SPORTS BETTING
NEW & CHANGING Sports betting, only possible in the US since the overturning of PASPA in 2018, has the most complex age rules based around not only age but whether a bettor uses a mobile app or retail location. The most recent state to launch sports betting is Maine.
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GAMBLING AGE | GAMING AMERICA
LOTTERY
DON'T PICK FIVE Only five US states are without a legal state lottery. Nevada, an otherwise gaming paradise, currently has a bill to amend its constitution planned for the legislative session this year.
PARI-MUTUEL
AND THEY'RE OFF Five states also outlaw pari-mutuel wagering. it's unlikely this will change unless these states also reconsider legalizing sports betting; currently Utah, Alaska, Hawaii, Georgia and South Carolina allow neither.
GAMINGAMERICA | 9
GAMING AMERICA | FROM THE TOP
AN OVERCROWDED PARADISE? With the Las Vegas Strip and Downtown both saturated and thriving, does Vegas need to think about where its next entertainment and gaming area could boom? We analyze in our latest From the top column... Knowing that the Las Vegas Strip actually exists slightly outside of the Las Vegas city limits makes you either a gaming industry veteran, a casino aficionado, or pretty fun at parties – but knowing where Las Vegas’ next successful development will be takes a lot more than just looking at a map. The Strip technically lies within the unincorporated towns of both Winchester and Paradise, is 4.2 miles long and has been recognized as both a National Scenic Byway and All-American Road, for having at least two of these six distinct “intrinsic qualities:” archeological, cultural, historic, natural, recreational, or scenic importance. We could argue that The Strip’s many appearances in iconic films and television series certainly give it pop-cultural relevance, while the mafia gave it some history, the casinos and shows brought in many forms of recreation, the architecture and scenic elements change dramatically from property to property and, when it comes to nature, the botanical gardens at the Bellagio must surely count. An All-American road must also have unique 10 | GAMINGAMERICA
elements that do not exist elsewhere in the country, which therefore make them tourist locations unto themselves. When it comes to tourism, the Strip needs no introduction. However, the Las Vegas Strip was not the first area of the city, or its local unincorporated townships, to feature gambling, neon lights or shows. Downtown Las Vegas (or “old Las Vegas”) is only a 10-minute drive north of The Strip, if you believe the sign outside of the Sahara, which openly mocks The Strat with its proclamation: “The Strip Starts Here.” Downtown was the original hotspot in Sin City, where it all started. Now, Downtown and The Fremont Street Experience, which opened in 1995, have made a comeback; however, there was a period of time when the area was a secondary character in the Las Vegas story. The success of The Strip forced all the glamour, and many of the tourists, just south of Downtown. Back in 1941 it was a complete gamble for Thomas Hull to open El Rancho Vegas out in the desert, but he thought he’d bring in a new
crowd by capturing those driving from Los Angeles to the city. The success of that property, and its all-you-can-eat buffet, became inspirations for many others that sprung up along the same highway, and later became The Las Vegas Strip. The Strip currently boasts 38 hotels: if you count its newest Fontainebleau; include The Strat; consider Aria and Vdara two separate hotels; give the same treatment to The Venetian and The Palazzo; and to Mandalay Bay and The Delano; as well as include the less famous Aztec Inn, Ahern hotel and Convention Center and Oyo Hotel & Casino. Downtown Las Vegas is also home to at least 10 recognizable hotels and casinos from its first, the Golden Gate Hotel & Casino, to its latest, Circa Resort & Casino. With both locations already highly saturated, and highly competitive, where should the next hypothetical Hull look to start a brand-new area? Could ‘Sin City’ limits ever be expanded to create a third, successful spot?
FROM THE TOP | GAMING AMERICA NORTH North of the Strip, Downtown has been revitalized by the four-block Fremont Street experience, including: the world’s largest LED canopy of 2.1 million lights that puts on free shows each evening, the Slotzilla zipline, many free concerts and block parties, as well as properties like The Plaza, The D and Circa, which either renovated or opened within the last 10 years. Downtown Las Vegas went from a train depot in the early 1900s, to a gambling center in 1905, to economic downturn by the 60s, to a ‘hidden gem’ or ‘must do’ today, depending on who you ask. There’s also a Neon Museum and Mob Museum, even though the mafia was more involved in constructing the casinos on The Strip. North of Downtown, however, lies the Nellis Air Force Base, the Las Vegas Premium North outlets, the Punk Rock Museum, Las Vegas Motor Speedway and the Haunted Museum. North Las Vegas is home to nearly 230,000 people. The benefits of adding a new casino or mega resort further north of Downtown, though, don’t seem to add up. Many residential and school districts, as well as manufacturing warehouses and distribution centers, make up the area. Gaming venues like Cannery Casino, Dotty’s Casino and Jackpot Joanies are available for players in the north, but they may be described best as ‘locals casinos’ rather than expected to have much tourist draw.
SUMMERLIN Summerlin sits in the western rim on the edge of Red Rock Canyon National Conservation area. The location is known for its 30% green space and over 250 parks, and is partly within the city limits of Las Vegas. At one point, it was voted the best master-planned community in America. While Summerlin has three major resort casinos – JW Marriot Las Vegas & Rampart Casino, Red Rock Casino Resort & Spa and Suncoast Hotel & and Casino – it is also home to several notable people within the gaming and surrounding entertainment industry including: Station Casinos CEO Frank Fertitta III, Magicians David Copperfield and Pen Jillette, Morton Restaurant Group
"WHAT WE HAVE LEARNED FROM WATCHING BOTH DOWNTOWN, AND ESPECIALLY THE STRIP, DEVELOP IS THAT WHAT HAPPENS IN VEGAS DOESN’T NECESSARILY NEED TO STAY IN VEGAS." founder Michale Morton, Celebrity Chef Julian Serrano and UFC President Dana White. Late Sands Chairman & CEO Sheldon Adelson was also a notable resident of Summerlin. This could make the area more of a home away from such peformers’, chefs’ and CEOs’ other ‘homes’ (so to speak) at casinos Downtown or on The Strip.
HENDERSON This city, about 16 miles southeast of Downtown, is the second-most populous city in Nevada. The Henderson Multigenerational Facility is a large entertainment complex without the same focuses of a casino, but the area (like most in Nevada) does already have a few casino resorts to choose from, including M Resort, Green Valley Ranch and Sunset Stations. Unlike the convenience of Downtown or The Strip, though, it would take around four and a half hours to walk past all three. The area also has three agerestricted senior citizen communities, which would put the residents all at legal gambling age, but possibly not within the demographic looking for a new entertainment and party district.
SOUTH South of the Strip, past Mandalay Bay and The Delano, there are a few major golf courses, the Harry Reid International Airport, a Skyzone trampoline park, the Las Vegas South Premium Outlets and, seemingly, a lot more desert. Just 15 minutes south of the airport is sometimes referred to as “cowboy country,” and is actually part of Paradise, and might be one of the least-visited areas when it comes to tourists. But it does boast
a Hilton Vacation Club Resort, South Point Hotel Casino & Spa, the Residence Inn, a Hampton Inn and The Aquarium at Silverton Casino. The Southern Highlands community also has three freeway access points. Perhaps a potential casino with a convention center could also really attract a certain type of visitor who will discuss and make business deals on the two nearby golf courses.
WHERE TO? Hull unwittingly constructed the first casino on the Las Vegas Strip by opening his location in the middle of a desert, yet in an area of heavy traffic. The idea of building where there is open space, yet proximity to an airport, sounds like it could be today’s equivalent move. However, the success that El Rancho Vegas experienced could have come from many factors other than its location. An enticing buffet, a welcoming staff, great treatment of its loyal customers, the types of games on offer, the pricing available, the overall vibe and that aforementioned level of convenience are all still factors in consideration when gamblers choose where to stay and play today. What we have learned from watching both Downtown, and especially The Strip, develop is that what happens in Vegas doesn’t necessarily need to stay in Vegas. Anywhere in Nevada can be either a gambler’s or tourist’s ‘paradise’ and any operator with a concept that matches its surrounding community, and with both the dedication and capital necessary to realize it, can build a casino somewhere in the desert of Nevada and attract a whole new crowd. GAMINGAMERICA | 11
GAMING AMERICA | TIMELINE
DRAFTKINGS: A HISTORY How does a company go from operating out of a creator’s home to becoming the 'kings' of online sports betting? Gaming America tracks the history of DraftKings, looking at its highlights from the past 11 years, to make sense of how a start-up can go on to make billion-dollar deals.
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TIMELINE | GAMING AMERICA
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GAMINGAMERICA | 13
GAMING AMERICA | TIMELINE
888: THE HIGHS AND LOW It has been a turbulent 12 months for 888, with new CEO Per Widerström joining the company last summer after a long search. The last several years have seen multiple highs and lows for the operator: Gaming America reviews them below.
14 | GAMINGAMERICA
TIMELINE | GAMING AMERICA
GAMINGAMERICA | 15
GAMING AMERICA | SURVIVAL GUIDE
HAVING A GREAT TIME ON YOUR COMPANY’S DIME Gaming America has put together a Las Vegas survival guide to make sure you have a productive and cost-effective stay next time you are in town on business. Funds and resources can be limited, and we know employers and employees alike don’t mind saving money whenever they can. Here are some creative ways to save yourself – along with your company – some hard-earned cash during your time working in Vegas, either in general or at the next G2E.
AIR TRAVEL: BOOKING 101 When it comes to air travel, we have found that the sooner you can book a flight ahead of time, the better. Planning in advance is key. Rates can and do vary throughout the year, but we’ve discovered that booking your flight months in advance will save big money in the long run. Waiting until less than a week out to book a flight can raise your ticket price anywhere from $100 to $400. It sounds easy, but we all still do it right? 16 | GAMINGAMERICA
Be sure to check a few weeks before you are scheduled to fly to make sure the airline’s schedule has not changed, too. This can help you save money if you need to change flight plans at the last minute because of any time-sensitive plans once you land. The later you book, the higher the rates could be, depending on the season. With that in mind, we recommend shopping around online prior to booking. Check the rates for multiple airlines and keep an eye out for discounts and deals. Booking through discount sites that offer multiple airline options can be another great way to save. Airline selection can also make a big difference in the price tag, something to keep in mind when booking your next trip. Do comfort and ease matter? Absolutely!
But saving some green on the flight can free up your travel budget for other trip amenities. Then there is the question of luggage. Depending on your length of stay, what to pack and how much you should bring with you can change. However, many flights offer deals that include a free carry-on bag and a personal item like a backpack or purse. Limiting yourself to bringing bags you won’t have to check in before takeoff can save the equivalent of a Vegas cab ride, which will cost you at least $30. While in the air, take whatever is free when it comes to food and drinks, even if you aren’t hungry or thirsty. Your hotel is likely to have a mini fridge that will keep your beverage of choice cold until you are ready to enjoy it. And you can store your
SURVIVAL GUIDE | GAMING AMERICA snack for later as well, saving you the cost of a convenience store or hotel stop later in the day. (A caveat, however, is that many hotel rooms on The Strip offer a stocked mini bar, rather than an empty mini fridge; make sure you know which one your room will contain by asking during check-in (more on that later). If you are on an airline that does not provide a complimentary snack and drink, no problem. Check the in-flight menu for affordable options. You can often find snack and drink bundles for a slight discount. Even if you save a buck, the dollars can quickly add up. And it's easy to underestimate how much energy you really need for the tradeshow floor.
AVOIDING HIDDEN CHARGES We learned the secret to dodging the landmines otherwise known as those sneaky hidden hotel fees that can end up on the final bill if you’re not careful. Here are the essential ones to avoid: The bottled water on the dresser is not free, even if there is not a price tag. We found that not all hotels include prices on the strategically placed bottled water. It can be tempting to grab one for convenience, but doing so could cost you between $18 and $30 in Las Vegas, the equivalent of a meal out during your trip. It’s always better to bring and refill a reusable water bottle, for both the planet and your wallet. Avoid the mini bar. Again, the snack prices might not be displayed… until you check out and get the final invoice. We also learned that hotel guests can be charged for unused drink and snack bar items when one hospitality worker was kind enough to let us know that those items are on a scale, and guests will be charged if they are moved. You heard it here first!
portions are so large, it is easy to eat half of your dinner and save the other half for the next meal, still feeling satisfied. Remember all the ways you saved money on the flight? Here is where we recommend you splurge a little with those extra savings. Having a nice meal out because you brought carry-on luggage is a great way to make the most out of your travel budget. However, you can save a little more even when fine dining if you choose a restaurant in your hotel or within walking distance from where you are staying. By saving the cost of a cab ride, you can treat yourself to a nice meal along with a dessert and cocktails. If you are in town for work and are attending a conference that offers food and drink items, be sure to take whatever is free. Grabbing a couple bottles of water from a complimentary lunch or breakfast will save you from having to buy something to drink later. Check to see if your hotel provides breakfast in the mornings. Not all of them in Vegas do, but if you are staying somewhere that offers a continental breakfast, we recommend taking advantage of this option. This is a great way to get a hot breakfast that you will not have to add to your list of expenses.
SAVING MONEY ON THE ROAD Depending on where you need to go while in Las Vegas, taking an Uber or cab can be essential. We learned a valuable lesson involving public transportation that can help you hold on to your cash. If this is your first trip to Vegas, it is important to keep that to yourself... especially when riding in the cab. Some cab drivers often keep the meter going by driving unsuspecting Las Vegas newcomers around town. The moral of the story is to keep how often you have been to Vegas close to the vest! Additionally, it is perfectly fine to shop around a little. It is helpful to compare the cost of using Uber to taking a taxi. If you need to travel a short distance that is too far to walk, hiring an Uber driver could be the cheaper option. Keeping in mind that a basic cab ride starts at $30 in Las Vegas, it is a good idea to consider saving the cost of a cab fare for those longer rides. For shorter distances, it never hurts to walk. Regardless of your fitness level and endurance, this is a great way to save. The key is to plan and leave early enough to make it to your destination on foot. Walking might cost you a little more time, but the added savings can make room in your budget to splurge a little somewhere else.
DINING OUT, WHILE GETTING THE BIGGEST BANG FOR YOUR BUCK Meals in the city can be expensive, depending on where you choose to stop. The good news is that most American restaurants, including those in Las Vegas, serve entrées that contain twice a typical adult-size portion. And because the GAMINGAMERICA | 17
GAMING AMERICA | ANDRE CARRIER
IN PRAISE OF THE RENEGADE ENTREPRENEUR “These are spaces that are occupied by incredibly brave, renegade entrepreneurs. And institutions don’t behave that way when they’re preserving wealth, by growing wealth in incremental amounts.” Andre Carrier, CEO of Eureka Casinos and recent Huddle guest, thinks deeply and thoughtfully about the hospitality industry in America – and on a regular basis. Gaming America spoke with him at Eureka’s offices in Las Vegas while the National Finals Rodeo and the National Basketball Association’s In-Season Tournament were in town.
Eureka Casinos operates properties in cities that aren’t always associated with casinos: Mesquite, Nevada, Seabrook and New Hampshire. How did you end up in those markets? The origin story of Eureka is a fun one. It goes back to our founder Ted Lee, my partner’s father. I think he originally got 18 | GAMINGAMERICA
a call – and it’s a fun one to unpack – from Manny Cortez, who headed up the LVCVA [Las Vegas Convention and Visitors Authority]. I think he was involved at that point in brokerage land. This is long before you and I were even ideas. Our origin company is Urban Land. A lot of the holdings of that business were land parcels. There was a parcel of land in Mesquite, Nevada where there was no offramp. Lee had the vision that this would be a relevant place. He bought the land and years later developed the Rancho Mesquite, the first iteration of the casino. It is one of those fortuitous stories of opportunity, visionaries and entrepreneurs that is so quintessentially Las Vegas and Southern Nevada. It’s like the great Nevada
story. Certain people are drawn here and see things well before the rest of us. Greg [Andre's business partner] and I have been the beneficiaries of good vision from Mr. and Mrs. Lee, for sure.
What about Seabrook? How did you get into that market? Seabrook may be equally funny. My dad practiced and worked south of Boston and we spent our time in the White Mountains of New Hampshire. We would drive [Interstate] 95 all the time. From time to time, at Exit 1 at the New Hampshire border with five kids, you’ve gotta use the facilities. We would stop off in Seabrook. So, I knew this property my whole life. Shortly after becoming an ESOP (Employee Stock Ownership Plan),
ANDRE CARRIER | GAMING AMERICA we realized we had created a long-term retirement plan for the benefit of our employees, so we had to diversify the company and the holdings. Greg, Lee and I were thinking about how we would do that and you think about places you’re familiar with. You think about places where people could help you and where you might have better instincts, which is a lot of leadership life, right? So, home is going to fit in that list. We got a phone call from a friend of ours, God rest his soul, Bill McLaughlin. Billy said, “Hey, I think the track is going to trade.” At that point, greyhound racing hadn’t existed in New Hampshire for 16 years or more. It was really just OTB (Off Track Betting). They had this great location but there had been very little reinvestment because they didn’t know what the highest and best use of the land could be. Seventy-five-acre parcel, great location on the 95 freeway at Exit 1 in New Hampshire. We headed out there and had a gut instinct, a ‘what if’ instinct. Also, Greg and I were both really intrigued about the charitable gaming construct in New Hampshire. It was interesting that 35% of all the revenue was going to a distinctive charity every day. You weren’t putting money into a pot for the state to write grants with. You were raising money that night for Boys & Girls Club. Greg and I thought it could be really interesting for an employee-owned company to own a charity casino. What if gaming expanded in New Hampshire and we took a big building – almost 100,000 square feet – and over time made it into, essentially, a regional casino? That ‘what if’ was enough to get us to move forward. Now, as I sit here with you today, I feel really lucky about how it’s all gone. I think it is a good example of an entrepreneurial journey that you take with a lot of hope.
the ground in those early days.
Explain to folks how a charitable casino works. For all games of chance, 35% of revenue goes to a distinctive charity daily. Those charities register with the state, background checks are done including proof of 501(c)3 status. Then they enter into agreements with us to take on dates. You can take up to 10 days a year and each day players in New Hampshire game on behalf of two different charities. On the slot side, 25% of that is taxed and 35% of that 25% goes to those charities, as well. So on any given week you could be raising upwards of $140,000-$150,000 for a charity. The charities may promote it, like you would if you were throwing a casino night, or they can be really passive. When you think about a state like New Hampshire, which has no income tax, 501(c)3s are often social cause organizations. They fill a really important lane in making community work. So, if you can get them spending less time fundraising and more time doing their work you get better outcomes. In 2013, at The Brook we raised over $8m – and over $16m since 2019. What if the largest charity casino in America raising upwards of $8m a year for essential charities was 100% employee owned? The remaining beneficiaries of the performance of that business were the long-term retirement and benefits of the men and women that work there. That’s The Brook. But, sometimes you need to find talent, people who will work and
volunteer in those [charity] organizations. Then you have to build awareness. That’s what makes the model different than, say, a fundraiser at a golf course. This is a way to market smaller organizations so that when people need those services in life, they’re aware they exist. Not everybody is Meals on Wheels. Not everybody has a brand that’s been built over decades. Lots of 501(c)3s that are performing essential services are passion projects formed out of experience and need, and marketing their existence is valued. That’s what I love so much about the model.
That’s very commendable. Switching back to your Mesquite location, readers across the world are going to be familiar with Vegas. They’re going to be less familiar with Mesquite. Why might someone want to visit Mesquite? Mesquite is different from Las Vegas in that it is a resort golf-lifestyle location. If you like the idea of Palm Springs in the 1950s and ‘60s, you’ll probably like Mesquite. Mesquite is where the red hills of Nevada and Utah begin. It’s a beautifully masterplanned community on one side and a real Western lifestyle community on the other, divided by the Virgin River. The other thing for golfers is there are seven courses within 10 minutes of your door. So, if what you want to do is get out and play four rounds of golf in three days, Mesquite is one of the rare places you can do it. The other thing that makes it different is that a lot of desert golf tracks
A leap of faith? Yes – things don’t go the way you think they will. But we’re blessed with a group of positive leaders who’ve taken this business from the “Construction Casino” to what it is today. We’re blessed to have most of the same group of leaders that were on GAMINGAMERICA | 19
GAMING AMERICA | ANDRE CARRIER are flat. Mesquite has massive elevation changes because of the tabletop mesas. So, it’s not uncommon to have the tee box 150 feet above the fairway. You have to be attentive when you’re driving a golf cart in Mesquite. It exists for an entirely different purpose than Las Vegas and speaks to a different customer. But it's a fantastic experience.
That sounds like it. You’ve obviously had a long career in gaming, three decades and counting, and you’ve worked for big names, Steve Wynn, Tilman Fertitta. Can you tell us a little bit about your biggest influences and how they shaped you as a leader? One of my influences is Bob Halloran. He was my dad’s friend in high school when I first came to Las Vegas. I used to have to do sanity checks, my parents didn’t know if Las Vegas would be a great place for a kid from South Boston and Mr. Halloran was the President and CEO of Sports for the Mirage. Sometimes we’d sit with Tommy Lasorda and have dinner at Kokomo’s. Other nights we’d go to a special event where Siegfried and Roy were raising money for white tiger preservation. But there’s nothing like fight night in Las Vegas. UFC comes more frequently than a big prize fight. We’d have maybe one or two a year and the whole world would focus on us. When we look at the big event, I just want to make sure everybody remembers how important Bob Halloran was to the creation of it. Some people are going to read this and know exactly who I mean. Bobby Baldwin will be smiling when he reads this. As a tactician, as an operator, as an intellect, I absolutely admire and was very much influenced by Mr. Baldwin. From Steve Wynn, the audacity of vision, which is remarkably ironic given his condition. My grandfather was [also] blind, so he and I had this special connection of moving around spaces with a lot of people. The questions he would ask me at the opening of the Bellagio. “Andre, 20 | GAMINGAMERICA
Where do you see casinos and the hospitality industry going in the next five to 10 years? Just like I spoke about the importance of renegade entrepreneurs, the other side of the album is institutional investment. I think there’s risks with that - things we do to entertain our customers, to provide growth opportunities for our talented people, don’t pencil analytically sometimes. The IRRs (internatal rates of return) aren’t great.
You wouldn’t invest in The Sphere?
ANDRE CARRIER Eureka Casinos CEO what is your favorite space?” It wasn’t a throwaway question. It was a test. I said, “I think it’s the atrium.” “Why?” “‘Cause when I think of that space, Mr. Wynn, it’s the natural light, the way that light affects what’s been built there. The smell of the flowers is so pervasive there and I think as a result all of your five senses activate the sixth sense of place, which is somewhere special.” “That’s correct.” Then, Tilman to me is the remaining renegade entrepreneur on Las Vegas Boulevard. He’s so important to the future of the city. I don’t want to put it on him – if anyone sends it to Tilman, I’m not putting it on you – but I think you’re so important. I think he’s so important because this city has been built by renegade entrepreneurs. And he is so brave. He is so good at what he does; we need him. Then, Doris Lee and Mr. Lee. Mrs. Lee – I think family businesses are really important. I grew up in a family business; we serve a specific purpose in that we can act quickly and we can do what’s right. We’re not forced to compromise. We talk about distribution of income, distribution of wealth, distribution of dignity and whether or not you feel trusted and respected. I think you learn that from great leaders, like the Lee’s.
Probably not. These are spaces that are occupied by incredibly brave, renegade entrepreneurs. And institutions don’t behave that way when they’re preserving wealth, by growing wealth in incremental amounts. Las Vegas has got to keep its edge on innovation, on style and I think we’re very blessed that restaurants do that for us. Nightclubs do that for us a lot. But the rest of our spaces have to be equally challenged all the time because there are places like Dubai that are building remarkable spaces. If we’re going to be about having the breadth of experiences, we have to say, “Hey, what can I do for a 57-year-old woman from Des Moines [Iowa] who’s going to get one vacation a year and at the same time what can I do for a 32-year-old options broker, trader, from Chicago who comes to Las Vegas five times a year to entertain himself and others?” We have got to be able to do both all the time. When I think about our future, I think how important Tilman is. I think how important restaurants like Cathedral or the Hakkasan Group are and I think about how important it is to have people like Bruno Mars building a jazz club in the Bellagio; and how entertainment and sports entertainment has changed this city. I think about how that’s changed things. I think how brave F1 was. We gave birth to one of the most profound events in the world in 2023. It was painful. [But] it was pretty cool. That’s what I see. Las Vegas has to – not stay “relevant” – you have to be the leader of what is cool.
GAMING AMERICA | MERGERS AND ACQUISITIONS
VIEW: RECENT M&A AND OTHER TRANSACTIONAL ACTIVITY IN GAMING Kristine E. Marsilio and Leen Al-Alami from law firm Duane Morris analyze the state of M&A in today’s gaming industry, and why companies need to think wisely before committing. With the US commercial gaming industry set to break revenue records for the third year in a row, investors and strategic actors alike see potential for growth in the highly diverse gaming sector. This encompasses everything from mobile to land-based and alternate reality/virtual reality gaming. 22 | GAMINGAMERICA
The second half of 2023 saw a number of acquisitions as industry-adjacent players expanded their business verticals to include sports betting – part of a strategic move to take leadership positions in the industry. Our expectation is that the trend will continue as legal and regulatory regimes throughout
the country become more sophisticated in differentiating (and therefore being more permissive with) online sports betting compared with traditional gambling. For example, in May, Australian gaming and content creation company Aristocrat Leisure entered into an agreement
MERGERS AND ACQUISITIONS | GAMING AMERICA to acquire NeoGames, a provider of iLottery and iGaming solutions, for an enterprise value of $1.2bn. The transaction is in line with the goals Aristocrat outlined in a 2022 financial report of becoming the world’s leading online gambling platform. Moreover, in December, Hard Rock Digital, Hard Rock’s online gaming division, announced the launch of Hard Rock Games via its acquisition of WGames. This section of the business focuses on free-to-play online gaming and adds another arm to Hard Rock’s growing divisions that seem to have a place in every sub-section of the gaming industry. On the consumer side, online sports betting seems to be becoming part of the cultural vernacular among certain demographic groups. As such, sports betting platforms with weight behind their name can create a sort of “captive audience” for their other business verticals, producing opportunities for cross-selling among various offerings.
REGULATORY ASPECTS OF M&A TRANSACTIONS IN THE GAMING SPACE However, as the frenzy of activity and interest in the gaming sector through mergers and acquisitions (M&A) and related transactions continues, investors will need to consider the regulatory aspects of such transactions as they move forward with their investments.There are a number of regulatory considerations for M&A activity involving licensed gaming entities in the often heavily regulated gaming space. Notably, many jurisdictions have extensive licensure requirements, including for entities offering ancillarytype gaming products or services. Prior to issuing a gaming license, regulators often conduct extensive background investigations of not only the applicant but also its principals and key persons involved in the gaming operations. This also often extends to persons or entities that hold a certain percentage
Kristine E. Marsilio
Leen Al-Alami
of ownership or beneficial interest in the applicant. Moreover, many jurisdictions have strict legal or regulatory prohibitions against the direct sale or transfer of a gaming license. Accordingly, transactions involving the merger or acquisition of a licensed gaming entity are often structured in a manner that maintains the existence and status of the licensee. Even when a merger or acquisition results in a licensed entity maintaining its status, there are often regulatory obligations that must be met or approvals that must be obtained, sometimes prior to the close of the transaction. Generally, these obligations can arise whenever there is a change in ownership, in the financial or equity interest, or in the persons who have the ability to control or exercise significant influence over the licensee. Importantly, the precise legal or regulatory requirements under these circumstances vary from jurisdiction to jurisdiction and depending on the specific type of gaming license involved. For instance, the merger or acquisition
of a licensed gaming entity may require the licensee to notify the respective regulator of the change post-transaction. On the other end of the spectrum, a merger or acquisition could require pre-approval by the respective regulator and the licensing and investigation of any new owners or persons with control. Given that some regulatory requirements can be rather extensive, it is important for entities contemplating such transactions to consider how long it may take to obtain any necessary approvals or authorizations prior to closure. This is particularly important when an entity holds gaming licenses in multiple jurisdictions, which may have varying timeframes related to their approval/licensing processes. While these regulatory approvals or licensing requirements may seem daunting, the precise requirements are generally circumstantial, depending largely on the specific structure of the transaction. As such, these regulatory considerations should be thoroughly vetted by entities structuring mergers or acquisitions in the gaming space. GAMINGAMERICA | 23
GAMING AMERICA | MONEY LAUNDERING
THE GLOBAL JUNKET CRACKDOWN Daniel C. Silva, Shareholder with Buchalter, and Jarod Baker, Co-Founder of Pacific Economics, discuss international government inquiries into money laundering at casinos. Although cryptocurrencies and sanctions have consumed the focus of anti-money laundering (AML) regulators recently, there has been another, less high-profile global crackdown happening in gaming. Junkets, their transactions and the shadowy figures controlling them sit at the centre of inquiries and prosecutions in Asia, North America and the wider Pacific region. The threats found within the inquiries and prosecutions go beyond the laundering of criminal proceeds. Transnational organised crime, long-rumored to pull the strings in various locations, has increasingly been identified as operating globally – largely through casinos. These organisations have their own transnational clients, including the world’s most problematic governments and political movements. Even worse, the transactions take place through underground transactions that slip through the traditional financial system across junkets, casinos and their affiliates as well as digital finance. In contrast to cryptocurrencies operating on a public ledger (e.g., the blockchain), the junkets’ global financial network is more difficult to either trace, associate with a person/business or identify as existing at all.
China's gaming industry. Over time, junkets evolved into a generally accepted practice in global gaming. Junkets originally served to transfer funds and value from mainland China, where gambling is illegal, to Macau and Hong Kong, where gambling is legal. Junket activity has steadily increased over the past several decades alongside: China’s economic rise; the growth of international gaming conglomerates; the more recent need to move money out of China covertly in light of President Xi Jinping’s anti-graft campaign that began in 2012; and in connection with China’s strict financial controls, which cap the amount of funds individuals can convert to foreign currencies at $50,000. Naturally for organised crime, the transfer networks take place off the financial grid, hidden from AML global regulations and scrutiny through “mirrored transactions” in cash or casino chips.
HOW JUNKETS INSERTED THEMSELVES INTO GLOBAL CRIME In broad terms, the words “junket” or “junketeers” have origins in Chinese, where jun literally means “introducing” and ke means “customers.” Introducing customers became a standard method of casino marketing during the late 1930s in Macau, 24 | GAMINGAMERICA
DANIEL C. SILVA Buchalter Shareholder
As casinos expand their presence both globally and online, money is able to move just as far and just as fast. Win or lose, gamblers skirt China’s financial controls and covertly move their money overseas. The Cullen Commission in British Columbia recently identified how billions of dollars were laundered through local casinos every year in these underground junket transactions: "Wealthy casino patrons were provided vast sums of illicit cash by “cash facilitators” who were affiliated with [local] criminal organisations. Typically, these patrons were not themselves involved in the criminal activity that generated these funds. Some held significant wealth in China but were unable to access that wealth [internationally] because of Chinese currency export restrictions, so they resorted to cash facilitators to get money to gamble in [the local jurisdiction]. "These patrons would genuinely use this cash to gamble. They often lost it. But whether they won or lost, they would repay the cash advance to the criminal organisation in a form other than cash, often via an electronic funds transfer in another jurisdiction. This arrangement enabled wealthy casino patrons to gamble in [the local jurisdiction] without running afoul (or at least without appearing to run afoul) of Chinese currency export restrictions, while allowing criminal organisations in [the local jurisdiction] to launder their illicit cash. They did so by converting it into a different medium of exchange, transferring it to another jurisdiction and obscuring its illicit origins." The source of the junkets’ funds has been
MONEY LAUNDERING | GAMING AMERICA linked to unlawful sources all over the world. With the rise of digital finance, a patron can be in another continent and still send money from their bank account in China to the junkets’ designated account in China using mobile banking applications – effectively buying cash in one country and paying for it in China. As a result, the foreign funds are cleaned, the casinos collect their debt from the patron and the patron’s funds never left China in violation of its capital controls.
GLOBAL EXPOSURE OF JUNKET AND ORGANISED CRIME AT CASINOS The Bergin Inquiry was the first major public inquiry into the role junkets play in international money laundering. Led by former Supreme Court Judge Patricia Bergin SC, the two-volume report explored deep and wide money-laundering practices, with links to organised crime and inadequate AML governance at Crown Resorts' Australian casinos. Most strikingly, the Bergin Inquiry highlighted the operations of Macaubased junkets that “function as part of an underground banking system” that spanned the Pacific. Without more robust AML practices, the Bergin Inquiry found that casinos struggled to “understand ownership structures, beneficial ownership or who is ultimately behind that corporate entity of a junket.” This was not an isolated problem. The Gotterson Inquiry tackled similar issues in another region of Australia, as carried out at The Star Entertainment Group. The examination explored how integrated the junkets were within the casino industry. The Star confirmed the complex and unmanageable AML risks by “permanently exiting” the use of junkets altogether. As mentioned above, the Cullen Commission analysed money laundering in British Columbian casinos. It concluded that the nation’s AML regime was “not effective.” Describing what became known as the “Vancouver Model,” these same techniques appeared in several criminal prosecutions in the US in and around the same time. The prosecutions in the US have largely targeted these networks as either
an “informal value transfer system,” underground banks or as unlicensed money transmitting businesses (MTBs). MTBs have proven to be a haven for money launderers, providing a complex web of transactions that are challenging to trace across international borders, digital platforms, currencies and assets. The concealment of the source, purpose and existence of junket transactions has proved extremely effective and adaptable. Latin American cartels have used similar tactics to launder narcotics proceeds. The Financial Times recently exposed how organised crime and “underground banks” allowed “gambling tycoons” to help North Korea launder the proceeds of cyberattacks and evade international sanctions, further emphasising the need for robust enforcement and regulatory measures. The Financial Times’ investigation further exposed all the hallmarks of international money laundering: “a complex tale traced through shell companies, triad networks, underground financing channels and sprawling family connections” that allow North Korea’s regime to be “propped up by murky intelligence and financing operations in the Chinese special administrative regions of Hong Kong and Macau.” These operations are, according to James Byrne, Director of the open-source intelligence and analysis research group at the Royal United Services Institute, “central to North Korea’s ability to
JAROD BAKER Pacific Economics Co-Founder
continue to function and threaten the world with nuclear war.” China has not been idle. Alvin Chau, the Chairman, CEO and Founder of Suncity Group – previously Macau’s biggest junket operator – was sentenced to 18 years in jail. The Bergin and Gotterson Inquiries indicated that Chau had extensive dealings with both Crown Resorts and The Star Entertainment through his junket-affiliated money laundering ring. Chau had for some time been linked to the Chinese Triad mafia and Wan Kuok Koi (aka Broken Tooth), sanctioned by the US Treasury Department in 2019 for corruption and money laundering. As a member of the Communist Party of China’s Chinese People’s Political Consultative Conference, Chau’s network of junkets and casinos spanned Africa, Southeast Asia and the Pacific.
THE NEED TO ENHANCE AML SCRUTINY Collectively, these inquiries, prosecutions and penalties indicate a clear intent by governments worldwide to protect every onramp to the financial system. To meet their AML obligations and protect the financial system, casinos must differentiate between the types of financial crime in various regions while gathering as much information from patrons as possible about the source of their funds (not just the source of their wealth). Authorities will expect casinos to maintain a robust AML and risk management program that can quickly determine the key information needed from customers, especially ones who use intermediaries. Online casinos are proliferating and have managed to find a way to work with junkets. Compounding the risks, many online casinos accept cryptocurrency for chips that can be cashed out for fiat currency. While junkets may continue as an enduring component of gaming, their use of underground funds transfer networks should not. They have operated in the shadows for too long, for the benefit of transnational organised crime and rogue states. The world's prosecutors, regulators and independent investigators show no signs of letting this continue. GAMINGAMERICA | 25
GAMING AMERICA | DURANGO & FONTAINEBLEAU
TWO NEW CASINOS IN ONE WEEK: SCENES FROM A BUSY DECEMBER IN LAS VEGAS With Vegas welcoming two new casinos, Durango and Fontainebleau Las Vegas, Gaming America investigates the thoughts and feelings of those involved and those lucky first few to walk through their doors. "Here we come!” Robin Martinelli of Chicago squealed as she strutted through the crystal-clean glass doors of the new Durango Casino and Resort, her 70-yearold legs bouncing to the beat of Hall and Oates’ 1982 classic “Maneater.” “I’m so excited!” she said with a mischievous grin. “A brand new casino! I just want to dance.” Until early December, it had been two years since a new casino had opened in Las Vegas. Then, within just a matter of days, two long-percolating resorts threw open their doors to an eager public: Station Casinos' latest “affordable luxury” property for locals, Durango, and the Strip’s newest temple to excess, Fontainebleau Las Vegas. The two casinos are wildly different – Durango, all sandstone and natural light, designed to appeal to area residents and 26 | GAMINGAMERICA
regional travelers; Fontainebleau, a towering monument to bombast, sure attracts Sin City’s big spenders – but they share two key attributes. The first is a devotion to luxury and style. While Fontainebleau’s $3.7bn price tag dwarfs Durango’s $750m in development costs, the planners of both projects clearly went out of their way to create spaces reeking of sophistication and elegance. Durango, situated off-Strip in Summerlin, a master-planned community in the Las Vegas Valley, boasts two high-limit rooms and three private gaming salons, off-set by polished metals and vases of vibrant, fresh flowers, which staff say will be one of the calling cards of the new resort. Floor-to-ceiling windows bathe the 83,000 square feet of gaming space in natural light while signature restaurants like Mijo Modern
Mexican offer a variety of dining spaces, each with a unique identity from chic and contemporary to contemplative and zen. Mijo also has a hip speakeasy that plays only vinyl records, its entrance hidden within the restaurants more than 40 tequila lockers. Fontainebleau, rising 68 stories on the north end of the Strip across Las Vegas Boulevard, across from Circus Circus and next door to the Wynn, is by all accounts dazzling, with soaring overhangs and artdeco styling. White marble and deep blue fabrics spread throughout the property to create an ocean-like aesthetic in the middle of the desert. Seemingly everywhere you look, the resort’s signature bow tie motif is incorporated. In the marble, carpet and crystal chandeliers, it gives the 173,000-square-foot gaming area and surrounding spaces just a little
DURANGO & FONTAINEBLEAU | GAMING AMERICA touch of whimsy to go along with its over-the-top opulence. In fact, despite the property’s overwhelming scale, with its impossibly high, scalloped ceilings that look almost like waves, Fontainebleau captivates with its attention to detail. The carefully textured wallpapers, the almost seamless mix of natural light and artificial mood lighting and its funky gold and – of course – curved light fixtures seem to lurk around every bend. But it’s not just an attention to style, flair and detail that Fontainebleau shares with Durango. Just as notable is the fact that both resorts took quite a while to be completed... Station Casinos purchased the land on which Durango was built in 2000 and simply waited for the community to mature around it before planning the actual resort. In many ways, Durango is a testament to Station Casinos' patient process for identifying and developing properties. Fontainebleau’s story – as Sin City fans know all too well – is a tad shorter but far more dramatic. Construction on the great blue tower – the tallest occupiable building in Nevada – began in 2007. But funding for the project was cut off during the grim years of the Great Recession, leaving the unfinished building hulking on Las Vegas Boulevard for more than a decade. The property changed hands multiple times before it was reacquired by the Fontainebleau brand and was finally, mercifully, finished – but not before it had become something of an unfortunate reference point to locals and visitors alike. However, no one was laughing at Fontainebleau’s grand opening on December 13. Quite the opposite, in fact. “This has become a reality,” said Mark Tricano, the President of Fontainebleau Las Vegas at the casino’s ribbon-cutting ceremony. It was held in the resort’s south lobby in the shadow of a towering, 46-foot sculpture of twisting aluminum, stainless steel and gold leaf by artist Urs Fischer known as Lovers #3, which depicts two forms coming together. “Our story of nearly 20 years in the making is a story of resilience,”
Tricano explained to the hundreds of ceremony attendees. “This is going to be an attraction to help the entire city thrive,” said Steve Hill, the CEO and President of the Las Vegas Convention and Visitors Authority, which markets Las Vegas internationally. “You couldn’t make this story up,” he said, calling the twisting and turning tale of Fontainebleau’s development something that not even a Hollywood movie producer would believe. “Thank you for this beautiful building,” Hill added in the direction of the Fontainebleau team. “Thanks for getting it done.” Meanwhile, Clark County Commissioner Tick Segerblom presented Fontainebleau Development CEO and Chairman Jeffrey Soffer a ceremonial key to the Strip, noting that usually the commission doesn’t grant such an honor to a property on its opening day. But given the building’s long lead-up time, Segerblom thought it was appropriate an exception was made in this case. “I think we’re finished now,” Soffer said. “Actually, we’re just getting started!” Even as the ceremony was held, complete with violinists and waitresses roaming the well-dressed crowd with platters of champaign flutes, men in hard hats and neon yellow vests scurried all over the property making final, finishing touches. Carts packed with hand tools blocked many hallways and, occasionally, the whir of power tools was heard over the music playing on the loudspeakers.
Still, even as Soffer joked that the building was not yet complete – “I still see things that don’t look quite right,” he said – his partner, Brett Mufson, the President of Fontainebleau Development, boasted “Fontainebleau is a name that stands for exceptionalism,” and that the brand originating from the beaches of South Florida is “reinventing luxury time and again,” now with a show-stopping location in Sin City. “I can’t wait to get off this stage and enjoy the party,” Mufson said. When the speeches all ended, a large crowd gathered on the stage, backed by the resort’s signature navy blue and gold color scheme, and cut with several gold scissors a blue ribbon that looked to be nearly a foot wide. “One, two, three!” a woman shouted right before the scissors snipped the ribbon, igniting whoops, cheers and applause. After the ceremony, dragon dancers – a symbol of good luck in Asian cultures and often present at celebrations – posed for photographs with attendees. In the main lobby, special guests were already streaming to the reception desk with their luggage trailing behind them. Sixty-year-old Paul Moore, a consultant to Fontainebleau who came to the grand opening from Southern California, stood with his wife, looking around the wide-open space, with its high-arching ceiling and ornate, clear columns that gave the area an almost-futuristic, space-age vibe, while still feeling chic, of course. “We just got here,
"BUT IT’S NOT JUST AN ATTENTION TO STYLE, FLAIR AND DETAIL THAT FONTAINEBLEAU SHARES WITH DURANGO. JUST AS NOTABLE IS THE FACT THAT BOTH RESORTS TOOK QUITE A WHILE TO BE COMPLETED..." GAMINGAMERICA | 27
GAMING AMERICA | DURANGO & FONTAINEBLEAU but so far it looks amazing,” Moore said. “It looks pretty,” his wife, Betsy added. Moore marveled at how the project was finally completed. “You had to be committed. You couldn’t be faint of heart to pull this off,” he said. Durango’s grand opening, a week prior on December 5, was no less energetic, if perhaps on a less grandiose scale. Visitors lined up outside for more than an hour before its 10am opening, waiting to see the latest locals’ resort. “Aw hell nah! People are lining up?” a member of the crew quipped as staff scurried about the casino floor, readying Durango for its very first visitors. “We got this!” shouted another staff member in the final moments leading up to the doors opening. “We got this, Station!” Outside the main entrance, executives gathered to cut a giant gold ribbon with
Durango Gaming Floor 28 | GAMINGAMERICA
giant gold scissors. “We’re excited to usher in the next era of Station Casino Resorts,” said Scott Kreeger, President of Red Rock Resorts, owner of the Station Casinos brand, to the gathered crew, media and other dignitaries. “Welcome to our friendly oasis in the desert!” he said. Durango was designed with foodies and sports lovers in mind. At its “Eat Your Heart Out” food hall, Durango visitors can sample a variety of eclectic cuisines in what you’d call a ‘communal dining experience.’ The 25,000 square-foot area features an Irv’s Burgers (from Los Angeles), a Prince Street Pizza (from New York) and a Fiorella by Marc Vetri (from Philadelphia), among other vendors. The George Sportsmen’s Lounge, another of the Durango’s stylish restaurants, was built specifically to overlook the casino’s ultra-modern (and
very curvy) sportsbook. “The TVs are big enough that I can look like I’m paying attention to my wife and watching the game,” joked Jonathan Fine, the CEO of Fine Entertainment and force behind The George, on a tour of the facility the day before the grand opening. The George, like the sportsbook itself, seeks to make sports gaming a social experience. Its green-ringed, outdoor patio has enough space for patrons to play cornhole. The sportsbook itself has a variety of seating options at varying elevations, with coordinated screens on the walls and above the bar, virtually guaranteeing no bad seat in the house and an “absolutely game-changing experience” as Jason McCormick, the VP of Race and Sports at Station Casinos, described it modestly on the media tour. Durango’s first visitors on opening day almost universally remarked on the property’s natural light and open spaces, which they said stood in sharp contrast to some of Vegas’ other, dimmer casinos. “Beautiful!” said Cindy McConnell, 64, of Santa Clarita, California, just moments after walking in with her friend, Jeanne Stojkovic, a Las Vegas local. “It seems very open. Brightness!” “You never get windows,” chimed in Stojkovic, 56, who as a Las Vegas local is exactly the demographic Station is targeting with Durango. Steve Perez, 70, wandered quietly among the throng of early visitors, nodding approvingly at Durango’s décor. “I like the place. I like the arrangement,” the retiree said. But he had to admit, as much as he liked the Durango, another resort was on his mind. “I’m waiting for the Fontainebleau,” he said. Indeed, Fontainebleau’s grand opening a week later was a spectacle in the most Las Vegas way possible, with an evening firework display and none other than pop superstar Justin Timberlake performing at a VIP-only party late on the 13th, before the doors officially opened to the rest of the public just before midnight. For those keeping track, that was apparently the “SexyBack” singer’s first live show in four years. You can’t get more Vegas than that, baby.
GAMING AMERICA | BACK IN FASHION
RELIVING THE EXCEPTIONAL Gaming America explores the ins and outs of the long-awaited opening of the Fontainebleau Las Vegas, the newest resort on the Las Vegas Strip.
30 | GAMINGAMERICA
BACK IN FASHION | GAMING AMERICA Colleen Birch started her journey at the Fontainebleau Las Vegas with the title of Executive Director of Revenue Management & Contact Center back in September 2008. When Gaming America met Birch in Las Vegas, she had ascended to the role of COO, but the Fontainebleau Las Vegas had still yet to open. In 1997, Birch moved to Las Vegas to finish her BS in Hotel Administration at the University of Nevada Las Vegas. She smiled as she admitted, “It was never in my wildest dreams that I believed I would be in Las Vegas all these years after.” Similarly, as the Fontainebleau Las Vegas was originally announced by developer Jeffrey Soffer in 2005, it is also hard to believe the project isn’t already a thriving destination on The Strip. However, the resort is now ready to welcome guests into a new era of luxury.
CIRCLING BACK Fontainebleau Las Vegas began its construction in February 2007, with Bergman Walls & Associates as its executive architect (Gaming America spoke to EVP George Bergman in our November/December issue). By 2009, however, financing for the project was cut off, and construction was put on hold with the resort near 70% completion. October 2009 was no longer a possibility for the property’s grand opening. Birch said, “It was just a short nine months before the economy took a turn in Las
Vegas that paused the project. What happens when you start working in Las Vegas, in these really big boxes that are really exciting, and the job every day is a little bit different than the day before? It can get addictive, and I use that word with a very positive meaning.” Though Birch found this role rewarding, luck would have it that the Fontainebleau would once again call her name. The project was sold in 2010, then again in 2017, and finally in 2021 Soffer bought back the resort and resumed construction. Birch called the opportunity to rejoin the Fontainebleau Las Vegas team something she “just had to be a part of.” The COO added, “Our owner gets to say it’s his full circle moment.” The Fontainebleau brand, though, already has a legacy to uphold, with its older sister property in Miami Beach opening 70 years prior in 1954. The resort has shown up in film and television ever since, beginning with a scene from 1959’s “A Hole in the Head,” during which Frank Sinatra’s character attends a party at its swimming pool. In the 1960s, the hotel also features in James Bond classic “Goldfinger,” and continues to be a destination in modern shows like “The Marvelous Mrs Maisel” and “Grand Hotel.” Birch agrees that the Fontainebleau Miami Beach sets a very visible standard for the Las Vegas property to follow. She said, “Over the years, it’s really been known on the East Coast – really across the country – as the place to see and be seen.” Other than hoping to capture
"WHEN YOU START WORKING IN LAS VEGAS, IN THESE REALLY BIG BOXES THAT ARE REALLY EXCITING, AND THE JOB EVERY DAY IS A LITTLE BIT DIFFERENT THAN THE DAY BEFORE... IT CAN GET ADDICTIVE, AND I USE THAT WORD WITH A VERY POSITIVE MEANING."
the apparent timeless and successful hold the Miami Beach location has had on its guests, Birch said she is inspired by talking to people who have grown with the Fontainebleau and are ready to continue making memories at the resort. “I get really excited when I talk to customers on the road and they’ll tell me, ‘Oh, I used to go to Fontainebleau when I was a child,’ – like with their parents! And so here we are, with different generations now getting excited about Fontainebleau Las Vegas, maybe with a personal experience at our property in Miami.”
OBVIOUSLY BLEAU The influence of the Fontainebleau Miami Beach will also be seen physically in the Las Vegas property’s design. Birch says some of Miami’s more iconic elements will “weave their way through” the Las Vegas Strip resort, such as replicas of the Fontainebleau Miami Beach columns adorning the new casino floor in Vegas, as well as the opening of Vegas’ very own Bleau Bar. Birch was sure to spell its name out loud, to keep up the well-established brand recognition: “‘Bleau’ is obviously ‘B-L-E-A-U.’ The Fontainebleau way.” The Fontainebleau Las Vegas will also have several new amenities, which Birch proudly lists, including 36 newto-market concepts between food and beverage, a six-acre pool deck and the BleauLive Theatre. Every casino resort
Colleen Birch, who was COO during the opening of the Fontainebleau Las Vegas GAMINGAMERICA | 31
GAMING AMERICA | BACK IN FASHION on the Strip, and many away from it as well, seem to boast a celebrity chef or fine dining experience. But Birch’s belief in The Fontainebleau was palpable as she said, “Our food will be much better.” She added, “Las Vegas will have new entry, new concepts and new energy in a way that it hasn’t in quite a number of years.” Birch and the Fontainebleau are banking on the property having something for everyone, and on providing a specific brand of luxury and indulgence, unique to each new guest’s tastes. “We’ve got a very firm belief that luxury means different things to different people,” Birch explained, “And so, the variety and opportunity to experience Fontainebleau Las Vegas means you can do it your way.” The resort boasts enough restaurants to eat somewhere new for breakfast, lunch and dinner during at least a three-day stay, if not longer. However, Birch confesses that the Fontainebleau’s job will not be to confine visitors completely to its shining, azure building, and that there are plenty of opportunities for tourists and locals alike to explore the city as a whole. As of September 2023, there were over 1,200 restaurants in Las Vegas, and Birch rattled off another impressive statistic about the extremely saturated nature of planning a stay in Sin City. “I think what sets us apart, in this very, very hyper-competitive market there’s about 152,000 hotel rooms in a five-mile radius here in Las Vegas (which is crazy), is going to be our people.” The people who will make up the Fontainebleau Las Vegas team will number over 6,000. Upon our entrance to the lobby of the Fontainebleau Las Vegas office suite, Gaming America
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"WE FULLY BELIEVE WE WILL EARN THE BUSINESS OF THOSE CASINO CUSTOMERS AND GET THEM REALLY EXCITED – AND BE THEIR NEW HOME IN LAS VEGAS." had the pleasure of witnessing the excitement in the eyes of many hopeful bartenders as they arrived for interviews. A job fair was also held at Vū Las Vegas’ production campus in late September during Fontainebleau’s search for both front-of-house and back-of-house food and beverage professionals. And those lucky enough to earn a role with Fontainebleau, in any sector, are referred to as ‘members’ rather than ‘employees.’ Birch explained that that the “idea of belonging” as a member is just as important as making visitors feel welcome at the property. Birch said the Fontainebleau aims to be, “really focusing on how we make people feel coming to work, and giving them a level of enthusiasm that just is a little bit contagious. We believe that if our members are excited and believe in the brand, in the culture we’ve created, they will provide exceptional service onto our guests who will then hopefully just continue to return and return.”
As far as returning goes, Birch noted a survey, conducted by Skift Research, that said in the first quarter of 2023, “57% of people added an extra day – a play day or personal day – onto a trip.” For any resort, the preference will be for guests to book the longest stays possible; but for Las Vegas, which is now known almost as widely for its conventions and concerts as it is for its casinos these days, catching the business trip demographic and keeping them occupied in the city a few extra days can prove extremely lucrative. The Fontainebleau, in fact, will also offer
GAMING AMERICA | BACK IN FASHION 550,000 square feet of meeting space. Birch says conventions will form a large part of the Fontainebleau Las Vegas business and as much as 30% of the business will be group room nights. In the ‘early years’ after opening, Birch says business will also be reliant on transient customers rather than loyal casino goers. She added, “We’re a brand new building and we don’t have a database. That’s a little scary, but it’s also a great opportunity. We’ve built an exceptional casino marketing team, bringing their relationships from years of practice in the market. We know that once our doors open, and we’re able to showcase what we’ve created, we fully believe we will earn the business of those casino customers and get them really excited — and be their new home in Las Vegas.”
ORCHESTRATING LUXURY The casino will certainly capture the attention of any legacy Fontainebleau Miami Beach guests. The brand’s original, longstanding property doesn’t actually have a gaming floor, while the Las Vegas location would obviously be remiss without one. Those making the cross-country trip from Miami Beach to Las Vegas to check out the new
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Fontainebleau and see how it compares will be met with a 150,000 square-foot gaming floor, complete with handcrafted Italian chairs, a high-limit salon, a VIP rooftop experience and a Tavern at Fontainebleau sportsbook. Unlike in Miami, players can even place bets poolside from a gaming lounge on the pool deck. It will be interesting to see how many previous guests of the Floridian Fontainebleau will choose the Vegas version for a stay out west. As a brand with loyalty and reputation in the industry, but outside of the city, the first players who gamble at the Fontainebleau Las Vegas will experience a special atmosphere where it can truly be anybody’s game. Birch said, “We want to make sure we can cater to our guests’ needs as we learn more about who they are.” As those casino guests start arriving, playing and showing their loyalty in Las Vegas, the Fontainebleau members will not only need to learn, but also adapt and compete, to keep casino guests on The Strip happy. Birch was also quick to say that the established legacy and focus on luxury the Fontainebleau has already created will give way to “raising the stakes” in Las Vegas in a service-driven and experiential
way. The years of industry recognition and hospitality industry credentials have helped the Fontainebleau team develop a phrase Birch believes will be used to inform how members and guests will interact in the new resort. “Polite with a personality,” she told Gaming America. “It’s the idea that we can still be really polite, but I can do that in a way that connects with you, instead of just a very scripted entry. There are ways we can make connections, and we’re going to focus a lot on that. In Las Vegas, what we’ve seen is that it’s become pretty transactional, and so we know 'people' will be what sets the Fontainebleau Las Vegas apart.” And when asked to look into the future, to predict what kind of legacy the property will have, or how Birch would like the Fontainebleau to be known going forward, she carefully considered her answer. Birch said she liked the idea that “you could spend two, three days in the building and have a unique experience; and either choose to relive the same day you had because it was so exceptional, or to turn your day over, eat, play and do some things a little bit differently.” Birch would be proudest if the Fontainebleau Las Vegas' legacy was one of the utmost luxury, “whatever luxury means to you.”
GAMING AMERICA | BACK IN FASHION
REDEFINING LUXURY Fontainebleau Las Vegas President and gaming industry veteran Mark Tricano spoke exclusively to Gaming America about how the resort will set the stage after a tough act to follow in Miami Beach. Mark Tricano was appointed President of the Fontainebleau Las Vegas six months before its opening, but nearly 16 years after the project was announced. He began his journey in the gaming industry as Director of Planning & Analysis with Harrah’s Entertainment in New Jersey back in 2006, just a year before the Fontainebleau Las Vegas originally began its construction. He has risen among the ranks in several gaming companies across the globe, and while both the Fontainebleau’s and Tricano’s trajectories may be unusual in other industries, the President of The Strip’s newest resort said, “When it comes to the casino business, I don’t think anyone has a traditional journey or one that’s been planned out.”
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The Fontainebleau President grinned from his Las Vegas office, which included a tabletop scale model of the Fontainebleau resort, as he told Gaming America that his career has taken him “through lots of twists and turns from New Jersey, to Las Vegas, to Ohio to Asia.” The executive has, however, also been known for a particular catchphrase that applies not only to his career, but to the plot twists in the Fontainebleau Las Vegas’ story so far: “Somehow you work hard, you do the right thing, and everything else takes care of itself.”
PREDECESSORS’ VISIONS In Las Vegas, Gaming America not only had the pleasure to speak with
Tricano about the upcoming opening of the Fontainebleau Las Vegas, but also to hear about the property’s imminent debut as the subject went rapidly through the gaming industry rumor mill. The general consensus of those talking about the property was right: the Fontainebleau will be aiming for more of a luxury market on The Strip. It’s no surprise either when looking at the history of the property and its origins in Miami Beach, or when interpreting the bow tie logo of both resorts, as it adorns building facades, floor tiles, the Fontainebleau website and more. If there was any doubt in one’s mind that this project would be a high-end entrant onto The Strip, Tricano cleared that up by saying, “We’re definitely taking a luxury position in the marketplace and we think there’s an opportunity to redefine luxury in Las Vegas.” He continued by saying that in addition to "humanizing hospitality," the Fontainebleau Las Vegas will also look to “liberate luxury.” Tricano more than appreciates the property’s history in Miami, but his efforts across the country will include elevating the brand as well as maintaining its allure. He said, “It’s delivering that experience in a more modern format that is less beholden to the traditional norms of these definitions of service.” If any further doubt remained that the sleek, simple, geometric Fontainebleau logo may not be a bow tie, look no further than Architect Morris Lapidus, designer of the original Fontainebleau Miami Beach, who wore a bow tie throughout his adult life and left black marble bows in a white marble floor as his signature in the property. Another name synonymous with the
BACK IN FASHION | GAMING AMERICA Fontainebleau brand throughout the decades has been Jeffrey Soffer. Though hotelier Ben Novack founded the Fontainebleau Miami Beach, which opened in 1954, it was sold to Stephen Muss in 1978, and then later to Turnberry Associates in 2005 for $165m. Turnberry Associates was founded by Jeff’s father, Donald Soffer. Jeff had begun his journey with the firm in 1987, 18 years before the purchase of Fontainebleau Miami Beach. The same year in 2005, Fontainebleau Resorts LLC was established by Turnberry Associates, now owned by Jeff. It is his quote that greets visitors to the Fontainebleau Las Vegas administrative offices: “We serve the most important guests in the world.” Tricano agreed, expanding, “We have been serving the most important guests in the world for 70 years. When our ownership frames that and puts that perspective forward for the organization, and the mindset of our team members, it helps provide that North Star, that guide, on the expectations of how we view the people who walk through our doors.” Tricano says he is very fortunate to be entrusted with his role as President of the Fontainebleau Las Vegas, bestowed upon him not only by Soffer but by Brett Mufson and Koch Industries.
"PART OF WITHSTANDING THAT TEST OF TIME IS NOTICING WHEN TRENDS CHANGE DURING THE NATURAL PROGRESSION OF THOSE GENERATIONS." Mufson was previously appointed President and CEO of the property in January 2023, as Soffer’s long-time business partner, and will remain President of Fontainebleau Development. It takes a village of executives to raise a luxury hotel and casino, after all. Tricano was ever-grateful for the chance to be part of something of this scale, commenting that opening a casino on the Las Vegas Strip was a “once in a lifetime” opportunity. Considering factors at play such as the necessary capital for one to be developed, the gaming industry knowledge needed to run such a property and the ultra-competitive nature of Sin City’s most famous area, he’s absolutely right. He commented further, “When I think about our task at hand, and what we’re about to do in the next 60 days, you
can’t help but get excited about it.” That 60-day period encompasses everything from mid-October to mid-December when we spoke to Tricano, but obviously the real work begins after the Fontainebleau Las Vegas opens its gilded doors (it launched on 13 December, with Gaming America in attendance at a lavish launch).
RARE OPPORTUNITY In addition to the trust instilled in him by the developers and executive team working toward their shared Fontainebleau goal, Tricano is "privileged" to have worked with several "great bosses" throughout his career. “From each one I tried to learn something different,” he said, “just a different perspective on how you lead and manage, how you prioritize your work, or some of those attributes that say: ‘This person really understands how to get to the crux of an issue to solve problems and improve business.'” Tricano added that he was fortunate to have inspirational figures present in his career from an early age. That once-in-a-lifetime opportunity Tricano mentions also extends to the fact that the Fontainebleau Las Vegas is a one-of-a-kind property. Though Tricano acknowledges the fact that the Miami property’s rich legacy has helped to make his job a bit easier, that was a destination with a different aim. The Strip’s sister property in Miami Beach operates without a casino. “One of the things that’s so interesting, exciting, challenging for me is we’re not part of a large network; we are creating the systems,the processes, the culture from theground up.” The Fontainebleau’s foray into casino gaming will require much more than just picking out the perfect bow tie for its dealer’s GAMINGAMERICA | 37
GAMING AMERICA | BACK IN FASHION uniforms. But how much of a focus will the property place on gambling when that isn’t what the Fontainebleau brand is known for – though Las Vegas certainly is. Tricano says the opening of the Fontainebleau Las Vegas is about fulfilling promises that the executive team has made to the members joining them, as well as to the brand and its ownership. The satisfaction of those agreements is what “creates a business that is ready to stand for generations.” Part of withstanding that test of time is noticing when trends change during the natural progression of those generations. The Fontainebleau Las Vegas will admittedly be aligned more with the modern consumer and current times, which for Tricano began after the year 1999.
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“As our business has evolved over the past 24 years, the customers have changed, their expectations have changed, how we derive revenue and profits from the business has changed – and we’re in a fortunate position to be able to design and incorporate all of those elements in a really holistic fashion.” The modern casino resort customer is also looking for just that: a casino and resort. Tricano says achieving the balance when offering multiple potential revenuegenerating amenities will be crucial.
ELEMENTS OF SUCCESS There were four specific elements Tricano mentioned that help to keep a property, or a least the Fontainebleau, in vogue for decades: architecture, style,
celebration and sophistication. The influence the Miami Beach Fontainebleau has had is evident in the hotel’s strong appeal, as well as in its much-copied curved façade and other distinctive design elements. Tricano noted it is amazing for a property to stay relevant for 70 years, and compared it to another famous local property, which opened 12 years after the first Fontainebleau resort. “For us in Las Vegas, we might look at Caesars Palace, an iconic property that opened in 1966,” he smiled as he said, “You might have to fact check me on that one.” But there was no need; he was absolutely correct. Architecture alone won’t turn a property from a hotel into a destination. Tricano agrees with the likes of Yves Saint Laurent
BACK IN FASHION | GAMING AMERICA and Coco Chanel as he states, “You know, fashions come and go, but style is more eternal.” Cultivating a unique and enduring signature style is part of what has made the brand recognizable as well as desirable to many guests, and film crews, for years. The sophistication that comes to mind is seen within not only the bow tie motif, but also the imagery on the Fontainebleau Las Vegas’ flashy new website. Tuxedos, champagne, roses, marble, chocolate truffles, cufflinks, chandeliers, and rich blue and gold hues show the homepage visitor what an actual visit to the Fontainebleau could bring. Tricano said of one of the other more surprising elements the brand hopes to encapsulate in its experiences, “I think there’s also a level of celebration that’s with the Fontainbleau.” While luxurious images of elegant stays play in an enticing loop, the website also shows the brand’s playful and celebratory side by splicing in images of happy hotel guests licking birthday cake from their fingers, pool goers holding drinks served in pineapples as they swim and a fluffy poodle in a signature bow tie, winking at the camera. The curation is evident; every still and every clip was chosen to specifically invoke future guests’ individual versions of indulgence. Tricano said, “When I think about what we’re trying to do here, as I speak about redefining luxury on the Las Vegas Strip, I think about those four elements and how they are relevant for our project in Fontainbleau Las Vegas, but also for our members that join us, to understand that perspective and that history.” When it comes to reinventing the Las Vegas wheel, and drawing in both new and frequent casino resort guests to a property, the Strip isn’t even where a property has to be these days. Derek Stevens’ Circa Resort & Casino has also cultivated a style all its own, and a fanbase in the Downtown area loyal to the specific vibe of ‘bigger is better’ luxury that Circa offers with its stadium pool and sportsbook. Calling itself the “conduit between the Las Vegas of yesterday and the Las Vegas of tomorrow,” an aim that many newer and older properties alike would set their sights on, Circa may not be competing for the Fontainebleau’s
"WE’RE DEFINITELY TAKING A LUXURY POSITION IN THE MARKETPLACE AND WE THINK THAT THERE’S AN OPPORTUNITY TO REDEFINE LUXURY IN LAS VEGAS." customer demographic, but every casino resort in Las Vegas is in competition for that untouchable, icon status. Tricano said of Stevens, “I think what he has done Downtown, as a visionary in that landscape, has been tremendous, not only for Las Vegas in that location, but in many ways challenging us within our own industry to think different and do better.” It’s impossible to say now whether the three-year-old Circa will stand the test of another 67 years, but starting out strong could certainly help to maintain some crucial early-on momentum.
SOMEWHERE SPECIAL Being in Sin City and on the Strip, however, places any new hotel or casino into a prime, bustling mecca of tourists and locals alike. If resorts are in competition with each other, Las Vegas is in competition with the world for visitors’ attention, and every year more facets are added to the Las Vegas experience. The biggest names in music perform regular, sellout residencies (some from inventive new venues like the Sphere), while professional sports like the F1 Las Vegas Grand Prix and the 2024 Super Bowl will also put the city even more firmly on the map. When it comes to the advantages this location will no doubt bring, when compared to a Miami locale, Tricano said, “I think we’re certainly fortunate in Las Vegas to be in a location that offers so much to many different customers, because that traditional norm of being a gambler’s paradise – that’s changed over the years. We do offer more; we continue to diversify and grow as an industry.” ‘History’ is a word that came up often in Gaming America’s interviews with both Fontainebleau Las Vegas COO, Colleen Birch, as well as with Tricano. And while it’s
clear that certain elements can definitely aid in a property’s goals of being timeless, relevant and respected, the next 70 years will bring an untold number of innovations on concepts both new and old. The resort industry, the gaming industry and their renowned intersection in Las Vegas show absolutely no signs of slowing down. Every hotel, every casino, every show and every guest are looking for the heightened versions of experiences of years gone by. When asked what he hopes the history books will eventually say, when looking back upon the opening or the potential legacy of The Fontainebleau Las Vegas, Tricano responds, “Here’s an organization that helped evolve the market in a way that continued to excite, entertain and drive the overall vision for Las Vegas. And they did it in a way that we’re proud of.” He added that this pride must come not only from an ownership perspective, but from all the members that work at the Fontainebleau Las Vegas. Tricano nodded as he summarized his ultimate feeling of success: “If all the members that work here said, ‘I was part of that; we did something special and we made a difference.’”
Mark Tricano, President, Fontainebleau Las Vegas GAMINGAMERICA | 39
GAMING AMERICA | TRIBAL OPERATORS
THE END OF AN ERA - AND THE START OF A NEW ONE It’s difficult to anticipate exactly what the year will bring, but luckily for us, several Tribal operators have been waiting for 2024 to launch some major plans. This year has laid great expectations, yet it’s only just begun. What should we expect from 2024? Considering that it’s going to be the Year of the Wood Dragon, this premise is that we see 12 months of success and ambition. But also growth, especially within the gaming industry. There are already several major projects that are bookmarked to take place this year. The first is the most literal sense of transformation possible; the acquisition of The Mirage Hotel and Casino from MGM Resorts by Hard Rock International. This $1bn project was announced in 2023, although with operations at the venue continuing as normal, little was made of the news. However, as 2024 rolled around, Hard Rock International revealed rather extensive renovation plans for the old venue. Not only will The Mirage be entirely rebranded to Hard Rock Las Vegas, but several key aspects of the site will be changed too. The hotel rooms will be completely 40 | GAMINGAMERICA
gutted and remade in the trademark Hard Rock Hotel image. As part of this, Hard Rock has also announced that it intends to build a similar guitar-shaped hotel tower on-site, which will rise 660 feet into the air. Not only will this drastically alter the skyscape of the Las Vegas Strip, but it will also remove The Mirage’s iconic volcano from the property. Hard Rock International has confirmed it will remove the feature to make way for the new vision of the casino. So, while The Mirage will continue to operate until then, it is running on borrowed time. This year will bring about the final day of The Mirage and we will not see the first day of Hard Rock Las Vegas for some time; not until the renovations are complete. But this is not a sad story. In fact, it’s only one more chapter in the long history of the venue. The first time the property was used was in 1930, for a nightclub, and since then it has been the home of actresses and even other casinos.
The first time the site was opened for gambling was as early as 1959, with the Castaways, which was demolished to make way for The Mirage. So, in turn, it can be seen as only natural that The Mirage would be somewhat demolished to make way for its next stage in life. With the Seminole Tribe leading Hard Rock International, this makes for a Tribal operator getting a foot in the door on the famous Las Vegas Strip. Not only has the Seminole Tribe solidified its place in paradise, but it’s taken an iconic venue and made the decision to turn it into something new. Rather than simply relying on The Mirage’s reputation (which it could well have done), the Hard Rock brand and the Seminole people alike are not afraid to transform the opportunity into something bigger.
INSPIRE This isn’t the only Tribal operator that has made big steps in business, though,
TRIBAL OPERATORS| GAMING AMERICA
"WITH SEVERAL BIG NAMES UNDERGOING SUCH MOMENTS OF TRANSFORMATION, PERHAPS THE YEAR OF THE WOOD DRAGON IS LIVING UP TO ITS NAME ALREADY." nor was it the only time we’d see the Lunar New Year mentioned. The Mohegan Tribe, native to Connecticut, will make its international debut this year, with its South Korean Inspire Entertainment Resort. Mohegan was chosen by the South Korean Government in February 2016, with the Mohegan Tribe picked to carry the project due to its success operating the Mohegan Sun property in Uncasville, Connecticut. The concept agreement was finalized between Mohegan and the Incheon International Airport Corporation in 2015. Progress has been steady over the years, despite several global events happening between then and now. The Inspire Entertainment Resort will offer both gaming and non-gaming facilities, with activities for adults and families. There will be pools, entertainment districts, parks and Korea’s first dedicated performance hall, Arena. Not only that, but the foreign-playeronly casino is set to open with 150 gaming
tables and around 700 slot machines. While it will not be able to rely on local crowds, the operator is hoping to appeal to the Chinese, Japanese, Hong Kongese and Macanese crowds. South Koreans who hold a foreign passport will also be able to visit the casino, as well as expatriates. With the clientele being restricted to foreign-playeronly customers, the location of the resort makes all the more sense – being located right next to Incheon International Airport, one of the main transport hubs for South Korea’s capital, Seoul. At press time, Chen Si, the President and Representative Director of the upcoming Inspire Entertainment Resort in South Korea, has stated that the company has set the Chinese New Year to be its target opening date, to be operational in time for the festivities. Meanwhile, the hotels at Mohegan Inspire were opened on 30 November 2023 as part of a staggered launch. This is due to current limitations in South
Korea, which restrict Mohegan Gaming from applying for its casino licence until it has achieved a five-star hotel rating. All in all, this project will be the first of its kind in many ways. Not only will this be the first destination resort with an adjacent private air terminal, it will also be the largest entertainment arena in South Korea, with hopes to contribute significant revenue to the South Korean economy. More than that, though, this is the first time that a Tribal operator is standing up on the international stage. The Mohegan Tribe, despite several hundred years of uncertainty, has managed to step up and not only prove itself across the US, but now across the world. The Tribe was one of the last to receive federal recognition, only being awarded it in 1994, but this hasn’t stopped it in its tracks. With several big Tribes undergoing such moments of transformation, perhaps the Year of the Wood Dragon is living up to its name already. GAMINGAMERICA | 41
GAMING AMERICA | ONTARIO
THE CURIOUS CASE OF ONTARIO Paul Burns and Kevin Dennis explain why Ontario has become a hotspot for international operators and what we can expect going forward. Ontario has become a magnet for online gaming operators and suppliers following the launch of a new regulatory regime in April 2022, dubbed the ‘Ontario Model’ by some. Gaming America spoke with Canadian Gaming Association (CGA) President & CEO Paul Burns, and SVP, Canada of The Innovation Group Kevin Dennis, to learn more about how this new regulation has developed over the last year and a half.
Paul, remind us of the CGA's remit? Paul Burns: The Canadian Gaming Association is a national trade association representing operators and suppliers in Canada’s gaming industry, both land-based and online.We work with governments and regulators to inform gaming policy across Canada, recently working with Ontario as it established a regulated market for online gaming
"IT'S NOW HIGHLY COMPETITIVE WITH THAT NUMBER OF SITES AND OPERATORS IN THE MARKETPLACE. I WOULDN'T SAY IT'S CROWDED, BUT IT'S COMFORTABLY COZY." PAUL BURNS 42 | GAMINGAMERICA
in the province, as Canada’s first jurisdiction to do so.
What is the 'Ontario Model' and how does it differ from regulation in the other nine Canadian provinces? Kevin Dennis: The Ontario Model includes a variety of key attributes that have attracted a significant number of private iGaming operators. For example, the province (which also self-operates iGaming under the Ontario Lottery & Gaming Corporation {“OLG”} similar to all other provinces across Canada) introduced a practical approach to regulation, introduced sensible standards, a reasonable tax rate and did not limit the number of registrants that could enter the market. This approach has led to a commercially attractive regime for iGaming operators, delivering more money to the province and creating choices for customers, all while being supported by strong responsible gaming standards. In addition, a significant
ONTARIO | GAMING AMERICA component of iGaming has moved away from the grey market into a properly regulated environment.
sports betting laws changed in Canada. I think we’ve had good offerings in a nice, competitive marketplace.
Is there anything about Ontario in terms of history, culture or society that has made it more gambling friendly?
In the last year and a half since the new regulation regime, what has change looked like and what does it look like now?
PB: There are a few things. Canada has a very high adoption rate of technology. Smartphone penetration is very high, as is access to high-speed broadband Internet. So we’ve had the attributes that go with that. The interesting part is Ontario was never the highest, in terms of per capita spend, gaming jurisdiction in the country. Part of it was, I think, due to access to product. In other cases, it was due to the size and diversity of the population; Ontario has the largest province population, 15.5 million people. For whatever reason, it wasn’t one of the strongest. What we saw was a recognition that the grey market had penetrated Canada. Ontario also has history in the iGaming space from legacy companies like Cryptologic and Chartwell. There’s an affinity for technology. We also get a lot of advertising spillover from the US. We see a lot of North American sports, so there was always awareness of the need [for regulation] before the
PB: Canadians have had unrestricted access to online gaming since the internet’s inception. I used to refer to it as a semimature market, because operators were here. Some companies have been here for close to two decades. But creating a regulated environment was important to creating a level playing field for the current gaming operators here in Ontario and Canada. Obviously, something that we, as an industry association, have long advocated for is regulated gaming. What changed? It brought a lot of the North American operators into the marketplace in Canada. The market was obviously dominated mostly by European offshore brands, outside of North America. What we’ve seen is a strong level of interest because Ontario is North America’s only open license jurisdiction. Anybody is free to apply and be licensed. The regulatory regime is one that was developed through plenty of consultation. It took into account global best practices and put that together with a reasonable revenue-share model at 20%. It was allowed to be very attractive and inviting. The Government had two objectives going in; greater consumer protection and protecting consumer choice. What we saw in the first year was 45 companies launching and, by the end of the first year, 76 sites. There’s now over $1.4bn in gaming revenue. There was a very reasonable entry period for grey-market operators to transition to a regulated market. So no one had to leave. They could transition over. It was very inviting and met one of the Government’s objectives. That’s been exciting. Plus, we’re still seeing new entrants applying for a license. It’s a very competitive marketplace. There were some features of the regulatory regime
PAUL BURNS Canadian Gaming Association President & CEO
that helped protect that competitiveness. One in particular was there is no bonus incentive permitted in mass-market advertising. So, operators are free to offer bonuses and incentives only once people sign up. But it wasn’t a mainstay of the advertising feature, which we saw a lot of in the US. There’s a very big difference. Where you have a market dominated by three or four players in the US, that’s still predominantly a sports betting market, Ontario’s brought everything. It was tremendous and the right thing to do. All the conditions were set to make it a very inviting jurisdiction and industry came. I think customers have a tremendous amount of choice in the marketplace, and it’s kept it competitive and vibrant.
Is the Ontario Model comparable to the regulation seen in any of the US states? If not, what does the Ontario Model implement/offer that is different? KD: While Ontario’s model for internet gaming through private gaming operators is unique in the Canadian context and the legacy model under OLG, it does have some similarities to the US “license-andtax” system. For example, private gaming operators pay a percentage of their gross
KEVIN DENNIS The Innovation Group (TIG) SVP, Canada GAMINGAMERICA | 43
GAMING AMERICA | ONTARIO gaming revenues to iGaming Ontario and they have executed operating agreements. However, unlike the US models, Ontario is an open-license model which allows an unlimited number of online casinos. PB: I think the regulatory regime is fair. It’s an outcome standards-based approach from the Alcohol and Gaming Commission. It probably looks more like a European jurisdiction than it would to any other North American jurisdiction.
If an established operator or supplier from Europe or Asia intended to make their debut in the North American market, what reasons would they have to debut in Ontario as opposed to a US state? KD: As mentioned previously, since Ontario is an open-license model, allowing an unlimited number of online casinos, there is an opportunity to ‘test the waters’ in Ontario that can’t necessarily be duplicated in any other jurisdictions. But again, while the cost to enter may be lower, the competitive nature in the province is fierce due to the unlimited number of iGaming operators. PB: There’s also diversity in the marketplace. We have a very culturally diverse population; for example Ontario has one of the largest collections of Indian immigrants to Canada, and the same from parts of Southeast Asia. People say, ‘Hey, can I create a site that caters to a certain cultural demographic?’ or sites that have targeted female players. There’s freedom to do that in the marketplace with a $100,000 annual licensing fee
and a 20% revenue share. The barrier is not high for entry. I think the large, diverse population has provided a great opportunity in a market that’s one of the largest in North America.
For international operators/ suppliers wanting to launch in Ontario, what are some research points they will need to undertake before taking the plunge? KD: I keep coming back to the competitive nature of the province. You have private iGaming operators that were here before it was a regulated market; you have US-brand gaming companies including MGM, Caesars and Penn, as well as FanDuel and DraftKings; established European companies; new Ontario-based entrants and many others. And you also have OLG competing in the market. In addition, new operators/ suppliers will want to be familiar with the iGaming Ontario regulatory requirements around advertising, AML, compliance and responsible gaming among others. PB: The fact that it’s a full gaming jurisdiction, there’s sports and casino products and live dealer etc, nothing is left out. There’s a nice suite of products for everybody to work from that you do not see in all parts of the US or various other jurisdictions. We start from that and that’s why it’s different. But I think it's also the ability to compete in a marketplace that creates as best a level playing field as one can for operators to succeed. I’ve heard from operators that actual bonus incentives in the marketplace aren’t that high and it’s not always a key driver for
"THERE IS AN OPPORTUNITY TO ‘TEST THE WATERS’ IN ONTARIO THAT CAN’T NECESSARILY BE DUPLICATED IN ANY OTHER JURISDICTIONS." - KEVIN DENNIS 44 | GAMINGAMERICA
every customer. Customer service, ease of payment or signing up are driving a lot of success factors for operators. It’s still a marketplace. From a sports betting point of view there’s a lot to learn; in terms of diversity I still think there’s a lot of room to educate and grow that marketplace. We’ve seen some success with sites being able to attract firsttime sports bettors and female players, to what has traditionally been male dominated. There’s success available for companies with the right message and the right opportunities. But it’s now highly competitive with that number of sites and operators in the marketplace. I wouldn’t say it’s crowded, but it’s comfortably cozy.
As we come closer to wrapping up year two of the Ontario Model and enter 2024, what do you expect to see going forward? KD: As we close in on ‘Year 2,' what has been noticeable are those companies that have now departed Ontario, including Coolbet and Kindred Group in 2023. Again, it is a very competitive market. There are almost 50 licensed iGaming operators in Ontario. While new entrants will still come to Ontario, we can expect additional players to exit in 2024 and beyond as the market settles. PB: This is an important year for the overall strength and test of the model in the sense that we had a gradual increase of operators in the market through the first year. It was 17 sites and 12 companies on day one, and has grown to where it is today. So I think now it’s a test of the staying power of the marketplace. Is it right for people? Can they be competitive and profitable to stay in the marketplace? That’s where we, as an association, are cognizant of the compliance costs and making those decisions about entering markets, evaluating markets and whether they choose to stay. This year will show how the market can continue to develop. But there is obviously some growth left in Ontario, so I think this will be a very important year.
ESPORTS BETTING | GAMING AMERICA
DETERMINING THE FUTURE Oliver Niner, Head of Sales at PandaScore, provides a deep dive into esports betting and why bullish operators can push the vertical forward. Despite the leaps and bounds esports betting has made in the past few years, the broader gaming sector often looks at the esports vertical with a raised eyebrow. There are important questions that every operator rightly has around topics like product features and marketing – but what’s absolutely clear is that any operator thinking long term should be considering how it invests in esports. In some regions and circles, there’s an inherent assumption and acceptance that esports’ ceiling as a vertical is around fourth place. In European markets, soccer sits at the top of the totem pole, but depending on your jurisdiction there’s much more room to grow. We believe it can do even better than most titles as the Millennial and Gen Z audiences mature. In fact, we’ve hardly scratched the surface of what esports can be.
REGIONAL SPECIFICITY Despite the assumption that esports betting caps at roughly fourth place, there are regional factors that can impact this. In Denmark, esports is the secondmost popular category, only sitting under the behemoth of soccer. Based on our experience, esports outperforms horseracing – arguably a legacy segment – in several jurisdictions. For several of our customers in Europe, esports can compete with or outperform tennis and basketball. We believe that in the long term, esports can perform as well as NBA basketball, and we’re confident it’ll be bigger than betting on European basketball. In the UK, the odds are that esports won’t be bigger than soccer or horseracing within the next five to 10 years, but it can absolutely reach the number three position.
Brazil is another hotspot for esports betting that shares a lot of the same fandom and cultural elements as soccer – something we can see when Brazilian esports teams compete internationally. Southeast Asia holds incredible promise for operators seeking to target mobile esports and provide a high-quality mobile betting product. But, most importantly for the publication, the US market has flown like a rocket since PASPA's overturning and is still working through bumps in the road, state by state. Particularly for esports, it comes down to how each state legislates it. It’s unlikely that esports will challenge soccer and the big four American leagues, but the size of the consumer market indicates that esports is going to be incredibly popular. Esports is well positioned to develop innovative GAMINGAMERICA | 45
GAMING AMERICA | ESPORTS BETTING products considering the love for parlay or bet builder bets in the US.
BEING BULLISH PAYS OFF With any business decision, there’s always an element of risk management. It’s easy for the broader betting industry to rest on its laurels when it comes to esports, but it comes with an opportunity cost. Bullish, forward-thinking operators who are considering new opportunities, new verticals and new markets are already reaping the rewards of investing in esports. Rather than leaving the vertical to someone else, they’re embedding themselves within the rich culture of esports, building loyal, long-standing customer bases and dictating the segment’s growth. Operators leading the charge are doing so by taking a different approach than what traditional sportsbooks are used to. One effective method for building visibility and positive brand affinity is to embed your brand with an event, as an experience enhancement but not an explicit acquisition driver. GG.Bet’s partnership with Brazilian streamer Gaules is a good example: it has partnered with a Twitch streamer with a wide reach and passionate fanbase for some of the biggest events of the year for esports and bettors. Gaules’ streams for these events draw in high five to six-figure viewership numbers, with GG.Bet’s brand embedded in the stream. This was coupled with a social campaign to drive acquisition, which included but did not center around bonus incentives. Bonus-driven acquisition isn’t as effective for Millenial and Gen Z audiences. Traditional sportsbook products and interfaces geared
for your Gen X audiences don’t capture the attention of the next generation of bettors. Rivalry's Cody Luongo puts it perfectly in his Sharpr newsletter: “It’s about content creators, not big-ticket team deals. Internet culture over sports culture. Digital over physical. Immersive, entertaining and social experiences above speed and functionality.”
REAPING THE REWARDS Clever operators who have spent time cultivating an audience and building experiences specifically for esports bettors are flourishing. Rivalry has been a trailblazer in this space thanks to clever marketing, learning what fans want and how they engage, and developing a high-quality product experience to match. The operator’s launch of same-game esports parlays is a great example. Rivalry took PandaScore’s bet builder product and gave it the company’s unique touch: a sharp product front-end, seamless experience and a campaign centered around making ‘big brain’ predictions and bets. Being on the front line of esports betting, understanding what works and what doesn’t, and collaborating with specialist suppliers to build catered products, does more than just benefit operators right now. Bullish operators don’t just benefit from the rising tide of esports, they’re deciding what the future of the segment looks like.
FOUR PILLARS TO AN ESPORTS BETTING APPROACH As with any emerging market, the first movers will be on the front foot: learning the fastest and molding the vertical in their preferred image. For many endemic
"BEING BULLISH ON ESPORTS MEANS CHOOSING TO DO SOMETHING RADICALLY DIFFERENT TO WHAT YOU MIGHT BE USED TO." 46 | GAMINGAMERICA
sports betting brands, esports has been a tough nut to crack: traditional approaches haven’t proved effective and copying the success of others isn’t so simple. It’s clear that trying to wedge a sports betting approach into esports doesn’t work. Operators seeking esports success have to do things differently. This can be distilled down to four key pillars: 1. Research and development 2. Knowing your audience 3. Timely engagement 4. Courage
RESEARCH AND DEVELOPMENT Being bullish on the product development front means more than just signing up with a specialist supplier. If you’ve decided to work with an esports supplier, you need to know why: how does esports benefit your business? Dedicated esports suppliers are focusing on their end of product development, with the knowledge, skills and ability to continue innovating. As an operator, you must walk in lockstep with your supplier and leverage their efforts – leaving esports as an ‘alsoran’ risks throttling the potential you’ve just invested in. Bullish operators are reallocating resources to esports betting, but what that reallocation looks like is incredibly important. Operators can often be too quick to just copypaste their sports approach onto esports. Taking the lead on the demographic front is a common practice: embrace esports by targeting specific jurisdictions. Places with established esports and betting track records like Europe – particularly Eastern Europe – and many parts of Asia. Or areas with strong potential and emerging audiences like the US, Mexico and Brazil. This type of land-grab method is what many operators are used to. While getting entry into these markets is important, sticking the landing doesn’t come as easily. Each jurisdiction has its particularities and preferences within esports that you need to cater to. Call of Duty is likely to perform much better in the US than in European jurisdictions – you need to shape your offering accordingly. The same can be said for another common
ESPORTS BETTING | GAMING AMERICA first step into a new segment: acquiring a user base that’s yet to be fully tapped. This method comes with the biggest potential but also the biggest risks. You really have to nail down how you get the most out of what you’re acquiring. How much of the user base bets on esports, and in what ways? Are you targeting esports viewers who might not bet or might not know how to bet? Commonly, when esports bettors do wager, it’s often smaller amounts over a wider spread to enhance an entertainment experience. There are of course those who are naturally looking to maximize payouts, but it generally appears to be a less significant driver compared to traditional sports. This means that, as an operator, you need to put resources, research and development into different types of marketing, engagement and acquisition campaigns. Operators are very used to affiliate marketing, sports-style campaigns and free bets but this doesn’t necessarily work in esports – it’s about how user experience plugs into the event. You need to leverage customers through community initiatives and organic engagement in the spaces they inhabit like Discord and X (formerly Twitter). Leverage activations at tournaments to build brand affinity. Use partnerships within the space for market entry and visibility, rather than directly pushing product. It’s about nurturing and attaching your product to the general esports fan experience, which requires a healthy amount of research into your audience.
ebasketball as esports products. They don’t cannibalize core segments and give existing sports bettors more of the same, functioning as an evolution of virtuals for an existing audience. We can be confident that esoccer and ebasketball are esports products for sports bettors, because their performance matches the ebbs and flows of those sports cycles. But, while there is a place for esoccer, it demonstrates a propensity for doing more of the same, without addressing core esports audiences. Operators invested in esports for esports audiences are looking at the ecosystem and analysing how to run decent acquisition campaigns specifically for their target audience. Rivalry is successful because it infiltrated the space and built things for that audience from within. A catered approach is what’s needed to engage esports audiences, and it needs to meet fans on their level.
TIMELY ENGAGEMENT Often when operators invest in esports they’ll get far too attached to how to position esports on their site in the most effective manner. Common questions like ‘should I have a separate esports website?’, ‘a separate section on an existing website?’,
KNOWING YOUR AUDIENCE This naturally brings us to our next point. You need to be confident that your business choices are aligned with the behavior of your customers. Many operators offering esports aren’t sure why an esports fan decides to bet: were they engaged by a campaign, were they cross-sold, what else do they bet on? What a lot of betting operators fear is cannibalizing turnover from other segments, particularly soccer. This fear is a big reason why there’s been an embrace of esoccer and
OLIVER NINER PandaScore Head of Sales
‘if so, where’s the optimal placement?’ Brands get focused on the user journey, but that runs on an implication of a ton of esports bettors who just haven’t converted yet. This behavior is very much taking what operators already know about traditional sports bettors and applying it to esports. But that’s an eighth or ninth-stage challenge and not where the core problem lies for non-endemic operators. The core of the challenge is much higher up the chain and it’s about understanding the community, knowing esports and internet culture, and engaging and playing with your target audience. Along with the community engagement piece, it’s less about placing your esports segment in the right spot on your site, but placing your product in front of your audience during the action, or in the spaces they inhabit. Microbetting products are especially interesting in esports, as it can place a betting opportunity directly within the experience for viewers in a manner that isn’t necessarily immersion-breaking. Bullish operators are experimenting and exploring these kinds of opportunities to find new forms of engagement in an entertainment medium built for the internet age.
COURAGE Finally, you must ultimately choose to do something radically different to what you might be used to. It takes courage to integrate and leverage continuously improving esports products, to approach an audience that consumes products differently, and to engage that audience in a manner that’s different to traditional sports. Adding a new esoccer product for a bump in margin or volume for the next year might work for now, but that’s a piece of an ever-diminishing pie. Bullish operators need to be hands-on with esports, and think deeply about how it can serve your target audience, or future audiences, beyond the land grab or bonus arms race. Esports is so much more than that: it’s pure unharnessed potential. There’s a higher risk but also a higher reward. A bit of courage helps along the way. GAMINGAMERICA | 47
GAMING AMERICA | JAY SARNO
JAY SARNO’S LEGACY LIVES ON Gaming America regular contributor Oliver Lovat reflects on the life and times of Jay Sarno, assessing his legacy in Las Vegas and wider gaming. This article contains never-before-seen photocopies of original Sarno artwork. Like many great innovators whose work is only truly recognized with the passing of time, Jay Sarno, the mastermind of both Caesars Palace and Circus Circus, has developed legendary status in Las Vegas. He was revered by both those who knew and worked with him, and admired by generations of others who did not, all recognizing his genius in understanding the psychology of the customer experience and translating that into a philosophy for hospitality design. Moreover, his influence was wider. Without Sarno, it is highly unlikely MGM’s Kirk Kerkorian would have had the confidence to scale his business, unlikely Bill Bennett would have had the canvas to inspire his Mandalay Bay Resorts portfolio and unlikely Steve Wynn would be able to build The Mirage, Bellagio and Wynn. There is no doubt that Las Vegas would not be the city it is today. In 2024, 40 years after 48 | GAMINGAMERICA
his passing, we assess Jay Sarno’s legacy and extract the truths learned from a remarkable life and his relevance today.
JAY SARNO In possibly the best book written about Las Vegas’ history, “Grandissimo. The First Emperor of Las Vegas. How Jay Sarno Won A Casino Empire, Lost It, And Inspired Modern Las Vegas,” David Schwartz chronicled Jay Sarno’s 62 years on the planet. It could have been several volumes. The son of Polish immigrants, Sarno was born in Missouri in 1922. From humble beginnings, he studied Business at The University of Missouri, where he met his future business partner Stanley Mallin. Like a real estate Laurel and Hardy, Sarno’s exuberance was balanced by Mallin’s levelheadedness, focusing on the numbers and structure. After serving together in the US army, Sarno and Mallin embarked on a
tiling business, before taking advantage of the growing interstate network, generous Federal loan scheme and Teamster finance to open the Atlanta Cabana Motor Hotel in 1958, Palo Alto Cabana in 1962 and Dallas Cabana in 1963. In what was a unique fusion of European classic and Miami modernism, Sarno’s designs blended visuals of consumable cinematography with the aspiration of the post-war customer. Amplifying the relatively low-cost build to seem spectacular, the Cabanas evolved to feature the distinctive Sarno block design, with a Tiffany green illumination and bold lighting to create a sense of place, visible from a distance. Their properties were set out like an open buffet; the aperitif of fountains and statues led to the curved cornucopia of lounges, restaurants and pleasure points for guests to enjoy. Sarno saw more than function; there was a psychological
JAY SARNO | GAMING AMERICA element to the places he created. During his building spree, Sarno was drawn by the dice to Las Vegas. His initial impressions were that the town’s resorts lacked the elegance of Miami and his own properties. The resorts were formulaic; The Sands, Dunes, Sahara, Desert Inn, Riviera and Tropicana, in various shapes, all offered the same: a casino, hotel, entertainment and generic restaurant offerings. The entertainers on the marquees outside were often billed more prominently than the resorts that hosted them. But despite this, they were making good money and, with a casino, significantly more than was possible in a traditional hotel. Sarno moved to Las Vegas in 1962 to conceive and oversee the development of his proposed Cabana Palace, on land owned by future MGM Resorts founder Kirk Kerkorian, where the aborted Martinique Resort was once to be built. The success of his Cabana properties gave confidence to Teamsters to finance much of the project. Although the name Hadrian’s Villa was mooted, the duo settled on “Caesars Palace” and, on August 5 1966, Las Vegas was changed forever, bringing aspiration, fantasy and escape into the casino experience. Sean McBurney, Regional President of Caesars Entertainment, who has had oversight of Caesars Palace for several years, observed, “Luxury resorts in Las Vegas started with Caesars Palace, thanks to Jay Sarno. However, he thought of luxury differently. He wanted it to be accessible to everyone. It was his fundamental vision that “everyone is a Caesar,” which, of course, explains why there is no apostrophe in our name. “The notion of 'luxury for everyone' continues at the property to this day and it’s why it experiences such extraordinary levels of visitation. Caesars Palace is luxurious in ways that appeal to the wealthiest and most powerful in the world, but it’s an approachable luxury that feels attainable to many more visitors. Caesars Palace has a special energy. It’s steeped in fun and celebrates luxury in myriad ways and at various scales, ensuring that anyone who walks through our doors can feel
just as Jay envisioned – like a Caesar.” Yes, the established template of casino, hotel, entertainment and restaurant were all present, like Sarno’s past projects they were on full display. Within Caesars Palace sat a fully immersive Greco-Roman theme, which was pervasive throughout the property. Outside, this property was architecturally different, owing more to both the Cabana Motor Hotels and Miami’s Fontainebleau than anything already on the market. Indeed, among the fountains and cypress trees, the Caesars Palace-branded signage dominated whoever was playing at the Circus Maximus showroom that evening. Rather than the norm, where elements of the resort were in separate buildings, Caesars Palace was a casino-centric wheel, where the energy generated on the casino floor permeated throughout the building. Having the casino at the center of the action was to be highly influential to all subsequent casino designs. Before his passing in 2021, Mallin said, “Sarno was a genius. At Caesars Palace, we captured lightning in a bottle. We just wanted to be the best in town. All our energies were spent on raising money and, in one respect, that was our failure as the only place we could get staff was from other hotels in town. If we had spent more time on management, we would have avoided the problems we had later.” This was not to be the first time this problem arose. The cost to build Caesars Palace has been reported at anything between $1224m, but after just three years and with federal eyes taking interest in the casino management division run by alleged mob associate Jerry Zarowitz, Sarno and Mallin sold the property to Lum’s for $60m. This left the duo to concentrate on their other venture, one that some believe to be even more radical than anything that had come either before or has come since. What was originally conceived as Caesars Desert Palace, opening on April 27 1968 on the site where The Mirage now stands, Sarno’s second Las Vegas resort became Circus Circus, housed in a Homer Rissman designed faux-Circus tent. Kerkorian was an investor. Although actor Clarence
Jay Sarno, credit: UNLV Hoffman was hired as the official ringmaster, all eyes were on Sarno. The casino opened without a hotel, without headliner performers and charged for entry. Inside was a highly immersive, experiential design, hued with color, fantasy and spectacular. Commercially, it operated double the bars and restaurants of Caesars Palace and four times the slot machines, busting the established tables-to-slots ratio, changing the casino floor. Of course, there was entertainment, with the circus performers as a pervasive theme throughout. The hotel finally opened in 1972. Before the hotel’s guestrooms, Circus Circus was operationally challenged, with duo Bill Bennett and Bill Pennington assuming operations in 1974, bringing discipline to proceedings, far away from the unstructured creativity and imagination of its principal visionary. The property became highly successful after Sarno stepped aside from running it. He remained a shareholder until 1983. GAMINGAMERICA | 49
GAMING AMERICA | JAY SARNO Sarno spent the following years fighting (and being acquitted) of further charges that caused him and Mallin casino licensing difficulties, investing in and operating other businesses, including karting, SlotsA-Fun and the Big Wheel Casino site of the Bonanza Gift Shop on the Sahara Strip intersection. But whether it was his past relationship with Teamsters, historic tax and licensing challenges, his lively personal life or the economic conditions of the late 1970s and early '80s, there was to be no completion to Sarno’s final project. Sarno died in 1984. His sale of Circus Circus stock had awarded him over $70m, but his never realized masterpiece, Grandissimo, was to have a significant impact on the future of Las Vegas. A 6,000 room, multi-tower casino resort was fantasy to many, especially as the largest properties at that time were under a quarter of that size; but once again Sarno demonstrated his remarkable prescience; Grandissimo was the template for the megaresorts that would come to dominate the city. As every new resort opens, today’s Las Vegas is closer to Sarno’s vision of what the city was to become than anyone could have imagined during his lifetime. Paul Steelman, the architect behind notable casinos on multiple continents observed, “Jay Sarno left an indelible mark on the city’s landscape and the casino industry. His innovative thinking set a precedent for extravagant and immersive entertainment experiences. Sarno’s crowning vision, Grandissimo, was ahead of its time, with the potential to reshape the very fabric of Las Vegas. Moreover, Sarno’s visionary approach could have expanded the Las Vegas entertainment district beyond the iconic Strip, encompassing both sides of
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Interstate 15, transforming the city into an even more colossal playground for visitors and redefining the skyline of Las Vegas for generations to come. The untapped potential of Grandissimo serves as a testament to Jay Sarno’s enduring influence on the evolution of Las Vegas as a global entertainment hub.”
LEARNING FROM SARNO Why is it, 40 years after his death, that Sarno’s legacy grows with every passing year? Resort development is vastly different today than when Jay Sarno came to town. Then, organized crime was involved across the city, segregation was a fresh memory (Caesars Palace was the first property on The Strip to hire front-line black employees) and the town was predominantly a gambling hub. Throughout his time in Las Vegas, there were many operators and big personalities and Sarno was not alone in shaping the casino industry. But there is no doubt to those who chronicle the development of the city that he was its principal innovator. In the '60s and '70s, Sarno was often found in deep conversation with industry leaders past, present and future, at breakfast at Caesars’ Noshorium, lunch at The Riviera coffee shop, dinner at Bob Taylor’s Ranch or on Sunday night at The Las Vegas Country Club. Occasionally he would head to his favorite, Wendy’s, for a sneaky burger. It is also true that alongside his creativity and larger-than-life character, Sarno lived life to the fullest, indulging in all of life’s pleasures, with idiosyncratic exuberance. Alan Feldman, the longstanding executive who played a role in opening many of Las Vegas’ resorts, including The Mirage, Bellagio and Aria, is one of those keen students of Las Vegas’ history.
“It’s been said that there are three vices that can ruin someone’s reputation: gambling, womanizing and drinking. An industry colleague once told me that in Vegas, you might survive if only two were present in your life. Jay Sarno was a man who knew no excess in anything he did. Unfortunately, the same magnificent places and experiences he created for guests were perfect environments for his own weaknesses to flourish. Even so, in the end, his concept for Grandissimo is startlingly prescient.” Later in his life, Sarno was invited to guest lecture at UNLV, where he spoke about his thoughts and experiences in the casino world, inspiring the lucky few that were present at these sessions. For those of us that work in this space today, we understand that few (if any) have held the raw intuition of Sarno. His name frequently arises when discussing new projects or designs, which is why we look to his work to find inspiration to better ours. Without a notebook or recorded interview, our only guide to understand Sarno’s thinking is to reflect, deconstruct, extrapolate and emulate.
SET THE TONE Heidi Sarno Straus observed her father’s secret; he knew people. He was hardwired with an innate understanding of customer psychology, from growing up in poverty dreaming big, from his time in the army where he was the guy that kept things together and from his time in developing motels. He knew resorts weren’t about functional real estate, they were about people. He created an offering with customer centrality; how do you want people to “feel” in our hotel? This view is shared by Feldman.
JAY SARNO | GAMING AMERICA “He was the first person to understand the motivations that drive customer decisions and he did it entirely on instinct. No polling or focus groups were needed for Sarno. He felt it in his heart and he was exactly right. He was the person who gave Las Vegas its identity beyond being a dusty rough-and-tumble gambling town. He didn’t do this with articulate definitions or strategies. He didn’t do this as an academic exercise. He was one of the most intuitive people to ever call Las Vegas home.” From the second that the customer saw one of Jay Sarno’s twinkling properties in the distance, the customer knew this was a different place from other hotels. Sarno would take the customer on a journey, from the first impression to the entire experience.Decades later, Roger Thomas, who designed many of Steve Wynn’s interiors, codified resort theming as “evoca-tecture.” Wynn’s properties were like Sarno’s – resorts that were not designed as replicas, but to evoke the feeling as if you were in Rome. The Mirage suggested a tropical vacation and all the elegance of Lombardy was to be found at The Bellagio. With Caesars Palace, the theme and design were all about indulgence, fantasy, elegance and aspiration. And most importantly, escape from normality.
ASK, WHY? One of the most enduring and compelling legacies of Jay Sarno was his challenging of the norm. McBurney commented, “Caesars Palace was innovative when it opened in 1966 and, over the last 57 years, it has continued to pioneer firsts. Staying on the path Jay charted, Caesars Palace is largely responsible for shaping how the market looks today. The first luxury shopping mall (Forum Shops), the first celebrity chef, the first mega-nightclub and the first resident headliner all started at Caesars Palace. Today, all those elements are pervasive throughout the market. In a testament to his legacy and the spirit of Las Vegas, these lessons of innovation and leading the market guide how we operate today.”
"MANY DEVELOPERS OBSERVE WHAT THEY SEE AND LIKE. THE BEST OBSERVED JAY SARNO." Sarno’s constant challenging led to mistakes, but he wasn’t afraid to make them. The entrance to Circus Circus was reconfigured just days after opening at great cost to a new property. He opened that casino without a hotel. Big mistake. Legendary casino manager Burton Cohen said working for Sarno, “Was [one] of the greatest experiences of my career, Jay was a visionary. Las Vegas was the only place that could overcome Jay’s ideas. He was very innovative. He would ask why? Just because they always did it that way it doesn’t mean that we continue to do it that way.” It wasn’t to be the last time that the front of a new casino was configured shortly after opening, but the best developers and operators continue to heed Sarno’s lesson that real innovation begins by asking why.
grew to become the original “Celebrity Chef” and one of the most important executives in Food and Beverage in the history of the city, opening dozens of restaurants and authoring many of the handbooks that are the basis of what is used today. There is no doubt that Sarno’s creativity and experimental instinct knew no limits, but his budget frequently did and it was left to Mallin, Cohen and other trusted executives to draw the line on what was and was not feasible. Having people that say no is as important as those that don’t, recalled Cohen in his dealings with Sarno. However, Cohen didn’t win in every case, as legendary tales of Tanya the elephant, who joined the Circus Circus repertoire from the Dunes, will testify.
NEXT? RECRUIT THE BEST Decades before future Caesars Palace operator, Gary Loveman, was researching the importance of front-line interactions at Harvard University, Sarno was empowering his staff to engage with customers. Conversations, improvisation and approachability were all necessary to work at his properties, knowing intuitively that loyalty and repeat business was based on positive experiences; if you had a great experience at one of his properties, you would be back. Hiring the right people was vital to achieving this. At an executive level, Sarno partnered with architect Melvin Grossman and interior designer Shirley Joan “Jo” Harris, both of whom interpretated Sarno’s grandiose ideas into the practical, with Harris in particular aligning contemporary elegance to many of Sarno’s concepts. Nat Hart, hired as the Maître d’ of The Bacchanal Room,
Jay Sarno was a man on a mission – he was always looking for action. He had one speed: fast. His energy was contagious and his demands were great. He was a straight talker with little time for stupidity. For Sarno, money wasn’t important, his passion was his projects and the pursuit of pleasure. He was never satisfied, always wanting more and actively thinking of his next challenge. His vision was that Las Vegas could be so much bigger than what it was in the 1960s and 1970s, and that entertainment, rather than casinos, would be the future. This is a common attribute found in an environment that is highly competitive. The products are frequently not differentiable and can be rapidly emulated. Think restaurants, pools, nightclubs. Leading operators are always future thinking, either to seek improvements to the businesses that they operate or are GAMINGAMERICA | 51
GAMING AMERICA | JAY SARNO already working out what the next property will be. What does change is customers and knowing the evolving needs of customers is vital to resort development. The minute Caesars Palace opened, Sarno was onto the next project, a trait shared by Wynn, Bennett and many others; the most successful developers of Las Vegas, are always focused on making things better, working on the next deal or the next market. Before his passing, Sarno had started talking about the possibilities of Macau, decades before the market opened to international operators.
OBSERVE Sarno was constantly inspired by all around him, absorbing everything with one eye on what he could incorporate into his next project, whatever that would be. The aesthetic was important. He loved beautiful things and wasn’t shy about spending money when he felt it was merited. The statues at Caesars Palace were Italian Carrara marble and quarried from the same source as Michelangelo’s originals. There were many cheaper options. Steve Wynn observed, “I think every developer gives away, in his work, what he thinks of the public. If you don’t think the public knows the difference between beautiful and ugly, cheap and expensive, then you deal to the least common denominator or have the courage to do it right. So, you do plastic, you do second rate… but if you really believe people know the difference, if you respect them, then you must realize you must give them what they will respect or they will not reward you with their patronage.” Sarno didn’t quite put it as eloquently as Wynn, but hated things that looked cheap, believing customers valued quality. Perhaps this was a takeaway from observing his father’s work as a furniture
52 | GAMINGAMERICA
maker, but deriving pleasure in where he was, who he was with and what he was doing was inherent to his lifestyle. Sarno loved movies. He went to see everything and tried to bring aspects to his work. His properties were cinematic, designed to allow all visitors to make an entrance, advancing the concept of customer journey where even arrival to the resort was part of the narrative. He pioneered the sense of arrival, the physical as well as psychological journey to the front door of the casino. More than anywhere else, Sarno observed everything at Miami’s Fontainebleau, where he met and proposed to his future wife, Joyce, after just four days. He liberally replicated aspects of that property, from the curves, circles, pool and many other design elements. Fontainebleau’s architect, Morris Lapidus, also sought to insert cinematic elements into that property. Sarno took that and amplified it. Yes, Sarno’s creativity was original, but there is little doubt that he incorporated a lifetime of physical and emotional observations and interactions. One can find the elegance of Italy from his time in the army, including the trees and statues, featuring prominently. He valued waterfalls and fountains and the multi-sensory properties that they held. “It’s worth noting that Steve Wynn gave Sarno credit for establishing the template for casino design: a spectacular entry, a sense of place throughout the property and the casino serving as the main artery for everything else with restaurants and retail ringing the spaces. Wynn once said that "if you could find an original Caesars Palace
ground plan and overlay The Mirage, they’d be almost identical,” recalled Feldman. Many developers observe what they see and like. The best observed Jay Sarno.
*** We often talk about real-estate developers being of their time. Although that may be true to some extent, the fundamental lessons from the life of Jay Sarno are timeless. The tragedy is that Jay Sarno ran out of time before he could fully see his grandest vision realized. Others took it forward. Many of my contemporaries in resort development, plus owners, architects, executives and operators alike, acknowledge Jay Sarno. We recognize his daring, his innovation and his artistry. Moreover, we continually admire his vision, prescience and impact on modern Las Vegas. Some pay homage to Sarno directly, others attribute it as the keystone to our accumulated knowledge. Knowingly or unknowingly, Sarno’s influence is found in every casino resort across all continents of this world. And today’s Las Vegas was only possible thanks to the genius, daring and radical individualism of Jay Sarno. Oliver Lovat is the CEO of The Denstone Group, that offers strategic consultancy in resort development. He was faculty at City, University of London between 2012-2020 and University College of Estate Management 2010-2015. His research topics are Las Vegas Customer Behavior and The Evolution of Competitive Strategy Within Las Vegas Casino Resorts
GAMING AMERICA | ARCHITECTURE
DESIGNING FOR LONGEVITY James Horvath, SVP of Bergman Walls Associates, describes what it was like to be part of the Fontainebleau Las Vegas’ original concept, as well as its finishing touches before completion. What was the original design process like for the Fontainebleau Las Vegas back in the early 2000s? The original concept for the site was themed. Later, the owner wanted a more contemporary design tied in with their purchase of the original Fontainebleau in Miami. They hired us, along with Carlos Zapata and others, to collaborate on the new design that largely resulted in the exterior just completed, with the exception of the porte-cochére. Core and 54 | GAMINGAMERICA
Shell construction commenced while the venues were being designed. Construction ceased prior to the completion of the design and documentation to be picked up again, resulting in the fulfilment of the originally conceived project.
How much inspiration was taken from the Fontainebleau Miami Beach? As the Las Vegas Fontainebleau is the second property for the brand, several
elements from the original were used for inspiration. Locations like Chez Bon Bon, La Cote and Morris & Co were all adapted for Las Vegas. Design elements from within the lobby by Morris Lapidus were modified, like the columns which are similar throughout the casino.
What was your experience like working with Carlos Zapata Studios? Working with Carlos and his studio was
ARCHITECTURE | GAMING AMERICA is an anxious anticipation for when it will restart. No one planned for the amount of years the project would wait to be finalized but the excitement throughout the city for the completion is overwhelming.
Downtown are absolutely full is a broad assumption. I do believe other areas south of the Strip will start to develop and in time they could eventually be merged with the existing Strip.
If you were given the opportunity to design The Fontainebleau Las Vegas today, would you do anything differently from its original plans?
James P. Horvath, AIA, has more than 20 years of experience in hospitality, retail and casino resort architecture and interiors. His training and experience while with the Walt Disney Company provided insight to both hospitality operations and guest relations services, which he continues to apply to his design, planning and programming of projects throughout the US. As the 2023 American Institute of Architects Las Vegas President, 2022 Past President and President Elect, a member of the AIA Las Vegas Board of Directors and an active member of the National Council of Architectural Registration Boards (NCARB) for 19 years, James enjoys mentoring interns on the path to architectural licensure. Becoming a Partner at BWA in 2019, he has played a broad role in shaping the Strip, leading design and documentation teams in the development of some of its most iconic landmarks
Las Vegas is an ever-changing city; that is one of the unique challenges when designing a project that will have longevity. One change from the original design would have been to incorporate ride share as well as the Vegas Loop by the Boring Company. Both are changes that could not have been anticipated when the project started but are modifications that have been accommodated as the project was finalized.
What is your favorite element included in the architecture of the Fontainebleau Las Vegas?
an incredible collaboration. When the recent project was restarted, Carlos insisted on modifying the porte-cochere and updating the design. The new design is an airy sculptural structure that gracefully spans over the main entrance to the hotel. The end product may seem simple, but Carlos Zapata Studio worked through a complex structural system to span from one side of the property to the other.
How did it feel when the construction project had to be abandoned? Did you foresee the property going this many years before completion? When any project is put on hold, there
One of my favorite elements has been the use of the brand logo, a bow tie, within the design. Throughout the design of the architecture, furniture and finishes, guests will find bow ties sometimes in obvious form and sometimes abstracted slightly. Around the two-story casino is a background wall element that has a subtle bow tie pattern that is created in the negative relief on the wall and highlighted through uplighting.
With The Strip and Downtown both absolutely full of casinos and entertainment options, do you think Las Vegas will see a new up-and-coming area emerge? If so, where within the city could it be? Or would somewhere new be better?
JAMES HORVATH
Las Vegas has always been a city that can reinvent itself, and to say the Strip and
Bergman Walls Associates SVP GAMINGAMERICA | 55
GAMING AMERICA | US EXPANSION
JERSEY? SURE Relax Gaming CEO Simon Hammon reflects on the company’s launch into the US market as RLX Gaming. FRESH NAME, SAME APPROACH RLX Gaming is the new kid on the block in New Jersey. But CEO Simon Hammon was keen to stress that despite not carrying the Relax Gaming name, this remains the same company that is known across Europe.He tells Gaming America... We have been successful in the European market over the last several years, in part thanks to our portfolio of iGaming content. We are heading into this new chapter with the same goal as ever, to be the best in the business. The key to growth and prosperity in any new market is listening to the players, learning what it is they want and optimizing our offering accordingly, whether that be through brand-new content, or tailoring our current batch of games to suit an American audience. RLX Gaming plans to hit the ground running on day one of its brand-new American adventure, launching with two top performers to start and then following up with a collection of slot releases and a host of table games.
Launching alongside Great Western 3 will be Temple Tumble, It’s Time, Snake Arena, and Book of 99. Essentially, we have got something for every type of slot player within our US portfolio. This diverse range of games not only serves as an introduction to RLX Gaming but also plays a pivotal part in our strategy to gain important insight into the preferences of this new audience in terms of mechanics, themes and overall gaming experience.
LEVERAGING THE POPULARITY OF TABLE GAMES AMONGST AMERICAN PLAYERS When setting our long-term plans for the US, we had to acknowledge the country’s strong affinity for table games. With such a rich land-based heritage in the US, it
LOOKING AHEAD TO THE FUTURE IN THE US
MONEY TRAIN SET TO STOP ATALL US STATIONS Unsurprisingly, among the first games considered for the US market was Money Train 3. We’re incredibly excited to see how it fares in the US. Much like the studio itself, the only difference between Money Train 3 overseas and in the US will be its name. Here it will be known as Great Western 3, a name that’s much more in sync with an American audience. With its base gameplay, features and bonus round, we have full confidence this title will be well received. 56 | GAMINGAMERICA
felt crucial for us to deliver a selection of table games that will immediately resonate with players. The first two table games that will be released in the US are Blackjack Neo and Roulette Noveau. We are extremely confident these will be top performers in New Jersey. The user experience, presentation and overall entertainment offered by these games are tailored to resonate with the preferences of American players, both casual and serious.” The importance of table games cannot be underestimated when taking a new brand into the US. While these may not be a main product focus for most suppliers, they serve as a fantastic gateway for players when exploring what they have to offer for the very first time.
SIMON HAMMON Relax Gaming CEO
RLX Gaming's long-term focus in the US is nothing short of total success, with the company’s sights firmly set on becoming a market leader. Our commitment to the US iGaming market remains unwavering. There’s a lot to come from us in the next 12 months and beyond, and it’s going to be one very exciting journey for all involved. In the upcoming year, you can expect constant optimization of our content based on our extensive findings on the US market, as well as our learnings from offering iGaming products in Ontario. The 2024 roadmap will reflect our dedication to delivering exceptional gaming experiences and solidifying our position in the dynamic landscape of online gaming in New Jersey.
OLD SCHOOL GAMING | GAMING AMERICA
NOSTALGIA SELLS Gaming America spoke to Eclipse Gaming’s CEO, Tim Minard, about expanding in North America, the potential of Augmented Reality and the power of nostalgia. As the CEO of Eclipse Gaming, Tim Minard spends a lot of time thinking about what makes a game memorable and engaging. He spoke with Gaming America about the future of game design and Eclipse Gaming’s activities in 2023.
What has 2023 been like for Eclipse Gaming? It’s been a really great year so far. Our Cash Arcade Series™ of games launched its first two titles at the end of last year and the beginning of this year, the Big Shake Neon™ and the Big Shake Carnival™ respectively. We are extremely proud to say that both games have made the Eilers & Krejcik top 10 list multiple times. We’ve continued to expand our team across multiple areas of the business including game development, sales and IT, to name a few. We have also expanded our game footprint into new markets and new states. All of this was of course planned, but we take pride in executing the goals we set ourselves. I have to also say we have built a great team and our progress in the industry has only been possible because of the amazing team we have formed at Eclipse.
achievements and player progression, to encourage friendly competition and player retention. Land-based casinos are overdue for an added layer of interactive experience. The sky is the limit there.
What have you found makes a game entertaining and memorable? First and foremost, engaging themes, math, rich audio, immersive graphics and the overall emotional ride, but these are simply standard now. Elements that stand out now are leaning more towards user interface and innovative features. The addition of community and social features inevitably takes that one step further. Land-based gaming can learn a lot from progressions in the mobile sphere and the companies that shift to cater to more interactive tastes
What do you see as the next horizon for gaming and game design? Probably the biggest items on the horizon are the integration of Augmented Reality (AR) and gamification into the player experience. AR to enhance the in-person casino experience through interactive elements like stats, avatars or mobile device integration. Gamification adds another layer to this by involving players in rewards,
TIM MINARD Eclipse Gaming CEO
will ultimately make the greatest impact in the years to come.
What’s your favorite game in Eclipse’s portfolio? And why? I would have to say the Big Shake Series. They are beautifully designed games; our art team knocked it out of the park! But additionally, and just as important, their mechanics are recognizable and featureforward. Simply put, the Big Shake Series draws people in. The bright colors, coin pusher theme and immersive audio tracks, which you can change while playing, keep players engaged and entertained. I couldn’t be happier with the outcome of these games!
Eclipse’s games cover a wide gamut of themes – fantasy, mythology, Westerns. What game theme would you most like to see your company develop? I wouldn’t say a specific theme necessarily, but rather games that provide a certain nostalgia. Like our Cash Arcade Series™ that includes already released games the Big Shake Neon™, the Big Shake Carnival™, and soon to be released, Duck Dollars™. We are just beginning to explore the vast number of possibilities we can pull from certain time periods. We want to develop games that remind people of fun times in their lives. Which in these cases, is the carnival. The largest demographic for slot players at this time were either adolescents or young adults in the '70s and '80s. We want our games to resonate with players; we want them to feel a connection. GAMINGAMERICA | 57
GAMING AMERICA | FLORIDA
THE QUEST FOR A COMPACT Robert Jarvis, Professor of Law at Florida’s Nova Southeastern University, breaks down the legal proceedings and future possibilities of the Seminole sports betting compact in Florida.
How would you explain the Florida sports betting saga to someone who knows nothing about it? In 1992, Congress passed the Professional and Amateur Sports Protection Act (PASPA) and made sports betting illegal. In 2018, the US Supreme Court found that this was unconstitutional. During the 25 years between the passage and the striking down of PASPA, Americans’ views on gambling – and sports betting in particular – have changed. State governments discovered gambling was a good source of revenue. Sports leagues, which had been against gambling because of the Black Sox scandal, changed their views because they needed new sources of revenue. When the Supreme Court struck down PASPA, that set off a feeding frenzy. Today, 75% of states have authorized sports betting. Ironically, there are three very big states that haven't. California Tribes can’t get on the same page, and the 2022 ballot initiative failed. The Texas State Constitution prohibits basically all forms of gambling, and Texas has a Governor who is very opposed 58 | GAMINGAMERICA
to sports betting, so things would have to change in Texas. Florida clearly wants to have sports betting and it’s going to be an enormous entry into the market. In 2021, the Seminoles went to the State of Florida and said, “We already have gambling. Let us have sports betting, craps and roulette. The State of Florida said fine. This one pari-mutuel – owned by the Havenick family behind West Flagler Associates – had been in dog racing for generations and decided to challenge the Seminoles. Why is difficult to say. They never had any chance to win in the courts. The only chance they had was to burn money; and they have, at this point, nothing to show for it. Since 2021, West Flagler Associates has been fighting. The first lawsuit was filed in a Florida federal court and was quickly dismissed. The second lawsuit was filed in Washington DC, because Deb Haaland, Secretary of the Interior, was named as the defendant. West Flagler got very lucky that they drew Judge Friedrich, who had worked on Orrin Hatch’s Senate. Hatch was
a very conservative senator from Utah, very against gambling. It is thought that her views on gambling were shaped by time on Hatch’s staff. Judge Friedrich found that the Seminole/State of Florida gambling compact was a violation of the 1988 Indian Gaming Regulatory Act (IGRA) and she struck it down. Her opinion was a shock and completely nonsensical. If it had been turned into a law professor like me as a paper, it would have gotten an F.
Do you think Judge Friedrich’s views on gambling caused her to shoot it down, rather than the wording of IGRA or the case put forward by West Flagler? I can only point to the fact that she, as an unelected judge not in Florida, had the power to say, “I understand that the State of Florida and the Seminole Tribe have agreed to this, and the voters could have always struck it down.” But instead, she said, “I know better.” That’s a pretty amazing thing. When the DC Circuit got hold of Judge Friedrich’s opinion, they did give it an F. They unanimously overruled it. West Flagler, not
FLORIDA | GAMING AMERICA
willing to give up, asked the DC Circuit to reinstate Judge Friedrich’s opinion. The entire DC Circuit – 11 judges – said, “We’re not going to give you the time of day; move on.” The first thing a client wants to know is: how much is this going to cost? The second thing is: are we going to win? If you said, “this is going to cost boatloads of money, and at the end of the day you’re going to lose,” most clients would walk out the door. Instead, West Flagler said, “We have the chance to spend tons of money and lose? Sign us up.” Having lost at the DC Circuit, West Flagler went to the US Supreme Court and asked to prevent the Seminoles from starting up sports betting. The US Supreme Court turned them down. Now, West Flagler has asked the US Supreme Court for an extension on its petition for certiorari – a request that the US Supreme Court review what a lower court has done. The US Supreme Court will grant certiorari if either there is a conflict between two or more federal appellate courts (there is no conflict here) or if the issue is of national importance.
To start a lawsuit in Florida, you go to a Circuit Court, then go up to our District Court and then maybe to the Florida Supreme Court. West Flagler decided to jump the line and go directly to the Florida Supreme Court. I predict that next spring the Florida Supreme Court will send this to Leon County Circuit Court. Whenever the Florida Supreme Court gets the case, though, it will find that the Florida Constitution is not violated by the Seminoles having sports gambling.
To compare other states, there is also a Tribal monopoly on operating sports betting in Maine. Why do you think there have been no legal proceedings there that match what West Flagler are doing? West Flagler will be studied in years to come in American law schools. You have to have a determined plaintiff who is willing to spend ungodly sums of money on what is ultimately a Don Quixote-type quest. For all we know, West Flagler did try to negotiate with the Seminoles. You would have thought West Flagler would be out there telegraphing their
strategy, trying to curry public support, but they have not done that.
So it's possible others are seeing the case and it’s discouraging them from doing the same? Other states’ mom and pop shops may be seeing it and realizing they probably will not win. It would have made much more sense if the 2021 agreement between Florida and the Seminoles gave the Seminoles incentives for bringing in the pari-mutuels and having them as agents or sub-agents to get a piece of the sports betting pie. It would have been much more intelligent for West Flagler to say, “we’ll be an agent and take bets at our facility.”
Do you think that could happen now, after the dust settles? One would assume, but who knows? It would not surprise me if they never got in bed with the Seminoles. It would not surprise me if tomorrow West Flager said “we’re dismissing our lawsuits.” Nothing would surprise me because this has been so inexplicable. GAMINGAMERICA | 59
GAMING AMERICA | FLORIDA happen? Is it five years from now? Is it 10? I don’t know, but the Seminoles have made it clear that once they’ve got sports betting up and running, they will be back. That has been the history of the Tribe. The Seminoles invented Indian gambling – that’s not hyperbole. In 1979, they had the idea for a high-stakes bingo hall, and that was the basis of today’s Tribal gaming industry. Without the Seminoles, that might never have happened.
Something else that's difficult to explain is the hub-and-spoke model. If a bet is placed through a server on Tribal land, then it doesn’t matter where the person placing the bet is, as the bet will be deemed to be on Tribal land, too. Does that concept hold up, in your opinion? IGRA tried to balance the interests of both states and Tribes. The interesting thing, especially in 2023 in such a polarized nation, is that both Democrats and Republicans voted for IGRA. What Congress could not foresee in 1988 was the application of the internet. Congress had no way of knowing that in the future you could sit on your couch and place a bet. Lawyers have a name for this: ‘the omitted case doctrine.’ Technology is always coming up with things that legislators could not foresee. The question is, if the legislators had seen the omitted case, what would they have done? Judges have to ask themselves what if Congress had been told in 1988, “the Internet is going to become a way of civilian life, do you want to include it or exclude it from IGRA?” Because both Republicans and Democrats wanted IGRA to succeed at the time, it is inconceivable that Congress in 1988 would have said, “No, we don’t want that.” As a result, I have always thought that hub and spoke is implicit in the DNA of IGRA. There is a case called Desert Rose that was decided by the Ninth Circuit in California, and people who are against hub and spoke always point to that. The reason that case struck down a hub-and-spoke model, however, was because the state of California said, “We are against Tribal gambling, and therefore against mobile hub and spoke.” The Ninth Circuit had no choice but to say, “Well, it’s not authorized by your state, and under IGRA your state is supposed to be an equal partner with your Tribe; since your partner is not willing to dance, we have to strike this down.” It is completely different from the what’s happening in Florida. The state of Florida is saying, “We want hub and spoke; we’ve built it into our compact.” People who say the US Supreme Court will 60 | GAMINGAMERICA
Do you think Congress or the NIGC will update any of IGRA’s wording to include the internet?
ROBERT JARVIS Florida's Nova Southeastern University Professor of Law
grant certiorari because of a conflict between the DC Circuit decision and Desert Rose decision are overlooking a critical, factual difference: Florida wants hub and spoke.
Will other Tribes ask for this model now? Once the shouting is over at the US Supreme Court and the Florida Supreme Court, every Tribe is going to say to its state, “We want hub and spoke so long as you, the state, give us permission.” Hub and spoke is the future of gambling, not just sports betting. We can look at the movie industry. The future is here: it’s streaming and getting the most recent release into your home. There is no question that we are going to have hub and spoke not only for sports betting, but for all betting. A big obstacle, oddly enough, was Sheldon Adelson. He was very against online betting. As soon as Sheldon Adelson died, Las Vegas Sands said, “We’re all for mobile betting.” His widow just agreed to buy the Dallas Mavericks. You can expect Mrs. Adelson will be pushing Texas to change its gambling laws.
So, you’re thinking more states or Tribes will ask for iGaming as well? The only question is, how fast does that
IGRA is not going to be updated because the courts have already interpreted IGRA as allowing mobile betting. With respect to the Bureau of Indian Affairs (BIA), you notice they’ve proposed part 293, which already authorizes remote sports betting. I don’t see IGRA changing. I do see the BIA adopting 293 and that effectively becoming the law of the land. The whole reason Congress made sports betting illegal in 1992 was because Bill Bradley was in the Senate. Bill Bradley, having played basketball in the NBA, was very against sports betting. You would need to have someone in Congress with the gravitas of Bill Bradley, who decided to make gambling their issue. I do not see that happening in either the Democratic or Republican Party today. There’s so much money involved since sports betting became legal in 2018; Americans have bet $220bn. States and local governments have reaped $3bn in new taxes. You can’t put this genie back in the bottle. West Flagler is as much of an outlier as Bill Bradley was in getting PASPA. Sheldon Adelson was the same type of outlier. It’s so fascinating that these contrarians have shaped what should have been an easy thing. Americans want to gamble, and when Americans really want something, it may take a while, but eventually they get it. Prohibition is the best example. There was a brief moment when the zealots got prohibition passed, but ultimately Americans wanted to drink, and they wanted to do it legally. Americans want to gamble. They want to do it legally, too.
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GAMING AMERICA | PRODUCT REVIEWS
WHAT'S NEW? Gaming America takes a look at some of the market's newest and most exciting gaming products, available for land-based players across the country. KONAMI’S NEWEST BIG-SCREEN SLOT With three, 43-inch monitors in 4K Ultra High-Definition (UHD) stacked to a height of 9 feet tall, Konami Gaming’s DIMENSION 43x3 cabinet takes player-favorite core games to soaring new potential. DIMENSION 43x3 delivers big-impact entertainment to both
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single players and pairs. It features a customengineered button interface, with dual classic spin buttons and generous surface space for drinks, phones and other personal effects, as well as both USB and wireless charging available. The interactive button deck is also extra large for player comfort. It features player favorite Stuffed Coins linked progressive slot series. The slot’s oversized displays and extra-large frame give casino players even more excitement with hit popular games. Hungry for a hit? A true feast of fortune, Stuffed Coins Pig and Stuffed Coins Toad offer re-spin adventures, mystery multipliers, wheel spins, and unique free games designed to delight! Similar to Konami’s popular Ocean Spin slot series,
Stuffed Coins uses the top screen to display available bonus awards like jackpot coin and multiplier coin symbols, which rotate across all connected machines. These rotating Coin symbols become redeemable during a wheel spin bonus called the Big Coin Feature one of many delights in Stuffed Coins’ buffet of bonus events! Because the machine is available to operators as for-sale or lease, properties can use the machine as they require for their unique product mix. It’s an oversized slot showcase with enduring operational value. After its unveiling in Las Vegas at the Global Gaming Expo 2023, the DIMENSION 43x3 debuted outside of Nevada at California’s Barona Resort & Casino.
PRODUCT REVIEWS | GAMING AMERICA
ZITRO MIGHTY HAMMER ULTIMATE WAP IN PANAMA Zitro has integrated Wide Area Progressive (WAP) technology into its Mighty Hammer Ultimate machines at 16 Fantastic casino locations in Panama. Mighty Hammer Ultimate itself is not a new game. The mythologically inspired slot game utilizes Zitro’s Link Up and Link King features, with three additional bonus links including bonus jewels and bonus thunder. The game has four jackpot levels and uses a 4x5 slot display. Moreover, the Altius Glare cabinet, which Mighty Hammer Ultimate calls home, launched in early 2022. The machine was designed with the intention to, according to Zitro Founder
Johnny Viveiros Ortiz, “exceed the expectations of players and our global partners,” with modern tech and connectivity behind it allowing for continued growth and development. One of these developments has been seen in Panama, with Zitro’s first Wide Area Progressive (WAP). The technology, which was introduced to machines at 16 Fantastic casino locations in Panama, South America, allows the machines to be interconnected to offer a large collective jackpot. The machines were connected via the UNIDESA Forward system and mathematically redesigned to accommodate the new tech. The integration across 16 locations will additionally create community and interconnectivity between Fantastic
casinos and the venues’ visitors. It will also mean increased jackpot sizes for players, giving these WAP-integrated machines a competitive edge against typical Mighty Hammer Ultimate machines. Zitro International President Sebastián Salat said, “The launch of our first WAP in Panama is a significant milestone for Zitro, confirming our company as a provider of machines for these WAP application where Zitro’s gaming machines, installed in various casinos, are interconnected using the operator’s own system to build and offer common prizes.” He also went on to express gratitude towards the Zitro team and the ‘seamless’ integration of the UNIDESA Forward system.
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GAMING AMERICA | PRODUCT REVIEWS
BEAT THE BANKER “It’s not just the gameplay experience. It’s the whole visual experience as well.” Jean Venneman, COO of Gaming Arts, showed us the company’s new Deal or No Deal slot machine in its In-Office Showroom at its Las Vegas office. She spoke with Gaming America about translating a TV show into a slot machine.
How do you go about translating a game show like Deal or No Deal into a slot machine? When it comes to branded licenses on slot machines, these are some of the best because there is a direct tie-in between what goes on in the brand and
what’s happening in-game. It’s much harder when you take a celebrity or a singer, etc. and turn that into a slot machine experience. We have an actual game from TV that we can translate into the machine. That’s what we’ve done. There’s a couple of bonuses in the game. The main Deal or No Deal bonus plays substantially like the TV show. When the player gets into the bonus, there’s 26 cases. They get to pick their favorite case, put that aside and then see the board, with half of the numbers on the lower side, half the numbers on the higher side. They start picking cases and they’re opened to see which ones are eliminated. Once they go through a round, the banker comes on – just like on the show – and offers them a certain amount of bonus money. Or they can continue to play. It’s very similar to the way the show works, which I think is what players are going to enjoy the most. It’s such a familiar experience since that show has been around for many years. Even those who are casual fans probably know the general mechanics.
Does that involve your game designers watching a bunch of episodes? Definitely. We are working with our licensing partner, Banijay Brands, who owns the brand and we’re making sure we’re going through – because it’s not just the game play experience. It’s the whole visual experience as well. Does it look like the set of the TV show? Does it have the same tempo? Does it have the same sounds? All those elements, we want to make sure we’re being true with.
Jean Venneman, COO, Gaming Arts 64 GAMINGAMERICA
It sounds like the authentic Deal or No Deal experience, as though you were on the show itself. Yes, some of the sweeteners we put in our
PRODUCT REVIEWS | GAMING AMERICA game that they might not do on the show is when you get into the bonus, there is opportunity for multipliers. You may go into the bonus, for example, and your top briefcase is 1,200. Or you could go in with a couple of multiplier briefcases and now that 1,200 has been multiplied by eight.
The banker, as in the show, is a silhouette. You don’t know what the banker looks like. The new show that’s been airing on CNBC has a female banker and we have a female banker in ours as well. So, you might see her silhouette go “Ahhh!” [slumps her shoulders] or “Ha!”
As I recall, the fun of the game was the contestant trying to outsmart the banker. How does that play out in the slot machine?
That’s got to be gratifying when you do win.
It’s going to be the same thought process and strategy for the player. They’re going to see what’s available on the board and what the banker has to offer. Then they’ll decide whether or not they want to take the deal or risk it and continue to play. I noticed that when I was playing, I would always go straight to the end because it’s fun to see the whole experience. But, when you’re sitting down in front of it as a player and you’ve wagered, say, $1.80 to get into this bonus and your first offer is, say, $450, you might think twice about, “Oh, I just want to keep playing.” There’s some risk – I bet $1.80, I’m being offered $450. Do I just want to take it and run? It’ll be interesting to see how players respond to that and if they also say, “You know what, I want to have the experience. I’ll take my chances and go to the end.” Or decide, “Okay, I want to get out pretty quickly because that’s a nice amount of money.” It’s up to them to decide, which I think is the interesting and fun part of the game.
Yeah. I hope the players feel that way as well, that they made a decision that put them on the right side of that scenario.
As part of your partnership with Banijay Brands you’re also rolling out some complimentary themes, Golden Briefcase and Briefcase Breaker. What can you tell us about those complimentary games? They’re very similar in the fact that the main feature, the Deal or No Deal bonus game, does have that traditional, authentic play experience. But some sub-bonuses vary. We also have free game features for both. In one of the themes, when you get to the free games there’s a re-spin feature where
If you outsmart the banker and win, do you get to have the cathartic experience of watching the banker feel bad that you beat him? If you decide to go to the end or even if you pick in the meantime, we will show you what your case had and you’ll see if you did better than the banker or not. GAMINGAMERICA 65
GAMING AMERICA | PRODUCT REVIEWS you can, if you have certain reels or certain symbols on the reels, re-spin to see if you can increase that. On the other, we have briefcases that are unidentified. If you get those you can pick among a number – I think it’s six or eight briefcases – to get your prize. We have some models, like open-thebriefcase models. We have them featured predominately in each of the games. Each of the games has a different personality based on the models that we placed in them. The true experience is similar between both themes. But there’s some nice variation.
Deal or No Deal is your big new game, but what else do you have on the horizon? A notable one, because it’s starting to see its approvals with the gaming control boards and we’re getting our GLI letters in, is a game called Big Fat Dragon. It’s an adorable dragon that, when you get into the bonus, he’s either eating food or getting hit by pots and pans. The food is good. The pots and pans, not so good. It’s an accumulation feature where
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the reels start filling the symbols as you play the game. The dragon has a lot of character. He’s endearing. I think players are going to enjoy the humor and the “adorableness,” for lack of a better word, of our character. You’re winning, you’re laughing. Who doesn’t want that?
We were just meeting in your In-Office Showroom in your office here in Las Vegas. How do you use that space? What is it for? We use it for a few reasons. Its primary reason is for customers, to bring them in and show them our latest and greatest. We also use it quite a bit to put the most recent builds of our games in so that the staff can go and play and offer commentary and feedback. We have a design team that is responsible for making the most interesting, compelling and exciting games we can make. But it takes a village. So, we’ll have various folks from accounting or production playing the game and they might see something that design didn’t see.
We want to make sure we get a lot of eyes on the game before it goes onto the market. That’s our version of pre-market testing, if you will. By having versions that are in-progress in there we can take a good look and offer our feedback.
So how many lunches have you spent there? Uh, yeah. A few. [Laughs] You can frequently walk by and hear somebody in there playing something. What’s better than having a job where part includes going in and playing games? We’re lucky to be in this industry where we can do these things.
You talk about office experiences where you have casual Friday. You have a casino in your office!? [Laughs] Not every business can say that. That’s for sure. We enjoy that. But we’re also productive with it. We have a fair number of customers that we’re able to bring in and show not just what’s current but what’s coming, which is always nice.