Global Gaming Business, February 2021

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CONTENTS

Vol. 20 • No. 2

february

Global Gaming Business Magazine

28 COVER STORY

COLUMNS

My Kind of Town

10 AGA Single Purpose Bill Miller

12 Fantini’s Finance Looking Ahead

As requests for proposals go out for a casino resort in Chicago, operators and officials examine several possible locations to identify the best way to exploit the potential of the third-largest metropolitan area in the U.S.

Frank Fantini

31 Operations More Effective Player Comping Mike Crenshaw

35 Making My Point Annual Assignments

By Brendan Bussmann

Roger Snow

DEPARTMENTS FEATURES 14 Loving the Brand Creating brand loyalty is one of the more complex puzzles operators must solve to distinguish themselves.

But the benefits are undeniable.

By Julia Carcamo

24 Celebrating the Mirage

By Roger Gros

6

By the Numbers

8

5 Questions

40 Emerging Leaders With Encore Boston Harbor’s Jeffrey Caldwell, Tipico’s Allen Ambrogio and Gaming Capital Group’s Molly Hart

42 New Game Review

32 Covid-19 Compliance

Along with online gaming, sports betting is arguably the fastest-growing segment of the gaming industry following the tough year of the pandemic. But in a low-margin business like a sportsbook, who is reaping the most benefit from the segment’s emergence?

The Agenda

13 AGEM

A look at the Mirage after 31 years of operation reveals how little has changed in a property that set the stage for the modern integrated resorts dominating the Las Vegas Strip.

By Andrew Klebanow and Arte Nathan

18 The Take from Sports

4

In the unprecedented circumstances caused by the Covid-19 pandemic, operators pay particular attention to regulatory and compliance needs.

By Grant Eve

44 Cutting Edge 46 Frankly Speaking 48 Goods & Services

36 Technology and Covid-19

53 People

The need to return to safe operations following industry shutdowns due to the Covid-19 pandemic has launched a new cottage industry of innovation.

With Hector Fernandez, President, Americas, Aristocrat Technologies

54 Casino Communications

By Dave Bontempo FEBRUARY 2021 www.ggbmagazine.com

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THE AGENDA

Sheldon Adelson A Tribute to the Man

By Roger Gros, Publisher

Sheldon Adelson was a great businessman, ack in 2014 when I was working as a conthere’s no doubt about that. Even before gaming sultant for G2E, we decided to go all in as it he had made his mark in several industries. He pertained to keynote speakers that year. The created Comdex, one of the world’s largest trade plan was to get Steve Wynn to present on Day shows, which actually led him into the casino One and the second day would be Sheldon industry through the meetings and conventions Adelson, the two biggest names in gaming at that side. As we recollected his past, he began to warm time. And it was contingent—both from G2E’s to the experience, throwing out quips and jokes, perspective and the speakers themselves—that pleased with the response from the audience. both of them agree to do it, or it wouldn’t work.

But when I began to press him on his opposiWell, they were both willing to do it, but there tion to online gaming, the mood turned sour. You was one caveat. Sheldon didn’t really like to give see, Adelson was a family man, above all. He didspeeches, so he’d prefer to be interviewed by somen’t have children until late in life, and when he one instead. considered how they might be impacted by ramSo the question became, who should we get to pant online gaming, it scared him. It didn’t matter do it? Maybe a major TV news anchor, celebrity or that legal online gaming in 2014 a respected national columnist. was heavily regulated—it only After all, who would turn down existed at that time in New a chance to interview one of the Jersey, Nevada and Delaware. It most powerful men in America didn’t matter that there had not whose contributions could turn been (and still haven’t been) any the tide of an election? serious instances of minors gamBut then Sheldon’s people bling online with Daddy’s credit suggested that maybe I could do card. It didn’t matter that online it. I had completed a cover story Steve and Andrea Wynn join gaming could go on to become a on Sheldon the year before that Miriam and Sheldon Adelson cash cow for the industry, and they thought was very fair. And backstage at G2E 2014 potentially his company.

Sheldon had opened up to me Adelson only saw what he perceived to be a about his life and his views, telling me about his threat to his children and his family. He was pasopposition to online gaming, the first time he had sionate about protecting them and it showed durdiscussed that subject with a journalist. Of course ing that interview. As we ended it and left the I was very honored and quickly agreed. stage he was still grumbling at me, accusing me Backstage, it was a meeting of the greats. of being “one of them,” a supporter of online Wynn and his wife Andrea had arrived early to get gaming, I suppose. But Rob Goldstein, Sheldon’s a front-row seat to Sheldon’s presentation (where successor and a longtime friend, was happy. This Sheldon sat the day before for Wynn’s awesome was the Sheldon he wanted people to see—the speech), and joined him and his wife Miriam in human and vulnerable Sheldon Adelson, who the green room. For two moguls who had a somesimply cared about his family more than anywhat contentious relationship in the past, it was a thing else. warm and friendly reunion. They didn’t talk busiIt’s that humanity that we’ll miss now that ness, but discussed family and philanthropy.

Sheldon is gone. Yes, he was a ruthless businessWhen we took the stage in our big overstuffed man, but on the flip side, he cared so deeply chairs before a packed house of 1,500 people, we about his causes, he’d go too any length—and began a conversation about his rise in the industry any expense—to support those issues. You may and how he built his business. It was fascinating. not agree with his tactics or his viewpoint, but Now, “visionary” is a term we throw around you have to respect his passion. quite a bit in the gaming industry—a little too Sheldon Adelson has left a legacy on this much, in my opinion. I can count on one hand industry, and this world, for that matter, that will the people I would consider visionaries. But long endure.

Sheldon and Steve certainly belong on that list.

B

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Global Gaming Business FEBRUARY 2021

Vol. 20 • No. 2 • FEBRUARY 2021 Roger Gros, Publisher | rgros@ggbmagazine.com twitter: @GlobalGamingBiz Frank Legato, Editor | flegato@ggbmagazine.com twitter: @FranklySpeakn Marjorie Preston, Managing Editor mpreston@ggbmagazine.com Monica Cooley, Art Director mcooley@ggbmagazine.com Terri Brady, Sales & Marketing Director tbrady@ggbmagazine.com Becky Kingman-Gros, Chief Operating Officer bkingros@ggbmagazine.com Lisa Johnson, Communications Advisor lisa@lisajohnsoncommunications.com twitter: @LisaJohnsonPR Columnists Mike Crenshaw | Frank Fantini | Bill Miller | Roger Snow Contributing Editors Dave Bontempo twitter: @bontempomedia Brendan Bussmann | Julia Carcamo | Grant Eve Alex Goldstein | Andrew Klebanow Arte Nathan | Bill Sokolic twitter: @downbeachfilm Michael Vanaskie __________________

EDITORIAL ADVISORY BOARD Rino Armeni, President, Armeni Enterprises

•

Mark A. Birtha, Senior Vice President & General Manager, Hard Rock International

• Julie Brinkerhoff-Jacobs, President, Lifescapes International

• Nicholas Casiello Jr., Shareholder, Fox Rothschild

• Jeffrey Compton, Publisher, CDC E-Reports twitter: @CDCNewswire

• Dean Macomber, President, Macomber International, Inc.

• Stephen Martino, Vice President & Chief Compliance Officer, MGM Resorts International, twitter: @stephenmartino

• Jim Rafferty, President, Rafferty & Associates

• Thomas Reilly, Vice President Systems Sales, Scientific Games

• Michael Soll, President, The Innovation Group

• Katherine Spilde, Executive Director, Sycuan Gaming Institute, San Diego State University, twitter: @kspilde

• Ernie Stevens, Jr., Chairman, National Indian Gaming Association twitter: @NIGA1985

• Roy Student, President, Applied Management Strategies

• David D. Waddell, Partner Regulatory Management Counselors PC Casino Connection International LLC. 1000 Nevada Way • Suite 204 • Boulder City, NV 89005 702-248-1565 • 702-248-1567 (fax) www.ggbmagazine.com The views and opinions expressed by the writers and columnists of GLOBAL GAMING BUSINESS are not necessarily the views of the publisher or editor.

Copyright 2021 Global Gaming Business LLC. Boulder City, NV 89005 GLOBAL GAMING BUSINESS is published monthly by Casino Connection International, LLC. Printed in Nevada, USA. Postmaster: Send Change of Address forms to: 1000 Nevada Way, Suite 204, Boulder City, NV 89005

Official Publication

Everi_Executives_FullPg_GGB_Final.pdf

1

11/9/20

5:01 PM

If it makes you look good, we’re already working on it.

We’re a team of can-doer’s, problem solvers, and proactive partners looking at the gaming industry from every possible angle. We take pride in providing customized solutions for the front of the house, the back of the house and even your customer’s house.

The world has changed. Our purpose hasn’t.

FINTECH • GAMES • DIGITAL • LOYALTY

Let’s Go! everi.com

KACY DRURY Operations

DEAN EHRLICH Games

DARREN SIMMONS FinTech

MIKE RUMBOLZ CEO

RANDY TAYLOR President / COO

DAVID LUCCHESE Sales / Mkt / Digital

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BY THE

NUMBERS Single Deck Blackjack Tables Number of Tables on Jan. 1, 2021

BLaCkjaCk TrenDS W

hen it comes to blackjack in the casino industry, it’s clear that what happens in Vegas does not stay in Vegas. Most variations of blackjack started at a Las Vegas property, either on the Strip or Downtown, and have spread across the U.S. and around the world. That’s why John Mehaffey’s annual survey of Las Vegas blackjack is so important to not only Vegas but the entire industry. His exhaustive analysis of the market—where he actually visits every single casino and counts every table—is a gauge on the health and well-being of the game. This year, Mehaffey publishes the Las Vegas Blackjack Survey on his own site, VegasAdvantage.com. And he’s got some juicy tidbits to ponder. For example, the disappearance of single-deck blackjack is quite disturbing. The number of single-deck blackjack tables on the Las Vegas Strip dropped by 80 percent over the last decade. This is due to casinos moving 6:5 games to six- and eight-deck tables.

Downtown is home to the last 3:2 single-deck blackjack game in Las Vegas. It is at El Cortez. On the Strip, most Las Vegas blackjack tables paid 3:2 until 2014. That is when Venetian and Palazzo converted all tables under $50 to a 6:5 payout. Within a year, every Las Vegas Strip casino dealt 6:5 blackjack at lower limits. The game cuts the chances of winning for the players substantially. The final chart shows the composition of games in Las Vegas by number of decks and payouts. The most common table in the market is a 6:5 six- or eight-deck shoe. Most of these tables are found on the Strip. To read the full report, visit VegasAdvantage.com/las-vegas-blackjack, which includes different variations of the games and where to find them.

Strip Blackjack

Las Vegas Blackjack

by Percentage of Tables

Mixing It Up

W

hile the December 2020 Game Performance Report by Eilers & Krejcik Gaming shows a slight dip in the recovery that began following the pandemic lockdowns earlier in 2020, it has a few interesting tidbits. At left, the denominations of slot games across the floor of casinos that report their activity to EKG are Base Denom slanted mightily toward penny games. Of course, there are few real “penny” games.

The average bet on a penny game can approach $1 a spin, but it also indicates why penny games are so popular among operators who may set the hold percentage higher than other denoms. At right, the kinds of games offered are outlined. Clearly, video reels dominate, with ETGs making a move recently. Video poker holds steady at around 10 percent, but mechanical reels are also making something of a comeback. To obtain a copy of any Eilers & Krejcik Gaming report or survey, contact Rick Eckert at reckert@ekgamingllc.com.

6

Global Gaming Business

FEBRUARY 2021

Game Category

GAN-PrintAd-202102-3devices-background.indd 1

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NUTSHELL

“They

5Questions

Andrew Kreft

Executive Senior Principal / Director of Design, Lifescapes International, Inc. ifescapes International is a legendary company in gaming. When the Mirage in Las Vegas was first being Lvolcano. imagined, Steve Wynn turned to Lifescapes founder Don Brinkerhoff to design and build the famous Since then, it’s attracted millions of visitors each year.

Through the years, Lifescapes has been the go-to company when casinos consider their landscape architecture. Andrew Kreft, director of design for Lifescapes, explains how a well thought-out and designed concept can bring the outside in and create an environment that’s not only pleasing to the eye, but safe and secure in this difficult time. He spoke with GGB Publisher Roger Gros from his office in California in November. To hear a full podcast of this interview, visit GGBMagazine.com.

GGB: How has landscape design changed over the years?

Andrew Kreft: Prior to the Mirage opening in 1989, the concept of landscape design was, you drive past

1 2 3 4 5

the landscape to get to the parking lot, and then you go inside. And that was about it. Steve Wynn changed that. His idea was to create an environment where you’re transformed to a different place the minute you enter a property. That’s the very idea of resort. He wanted to continue that experience from the curb, through the resort all the way to the back of the property.

The concept of the volcano was that you could see it all the way down the Strip. It really drives you into the property. You make a promise when (visitors) come into the property, and you have to keep that promise all the way through.

In today’s casino, particularly during the pandemic, how important is it to bring the outdoors inside?

There shouldn’t be such a hard and fast line between what’s inside and what’s outside. We try to create a more undulated differentiation between indoors and outdoors to blur that line. We create more windows.

Back in the day, there were no windows in casinos, but now it softens the appearance and makes it easier for people to stay longer.

Now we’re creating these outdoor rooms you can see from the casino or restaurants that have these unique experiences. They’re each curated for very different experiences.

How early does your company get involved in a project?

We like to start on a project as soon as possible, so we can create an integrated design. We need to be part of the master-planning process. We’ve been very fortunate with our clients, especially with the Wynn organization, in that they see value in that idea. It’s not just about the great architecture; let’s just make it look pretty around the edges. It’s how can we influence the architecture to create a more unique experience for the guests. That kind of thing isn’t possible if you come in at the last minute.

Let’s talk about the pool area, always a key component of a casino resort. How does that come together?

For resorts, the pool area can be the heart of the project. If you’re looking at multi-night stays, you want people to stay on the property as much as possible, so let’s give them an environment where they have choices.

How do you create an environment where you can create enough outdoor rooms that can speak to the different interests of your guests? Some people don’t want to be on display. They want it a little quieter, with more privacy. Other people want to be front and center and part of all the activity. So we try to create a pool area that’s interesting for multiple days. And the pool area shouldn’t be seen as something that can only be used during the day.

So you’re saying landscape architecture isn’t just icing on the cake, it can be a revenue stream.

How do you communicate that to casino owners?

If we can get in there early and bake this into the design, we can create revenue or value in places where you might not have thought it was possible. It won’t end up costing you anything extra if you do it early on. But if you come in late, you end up reacting and playing catch-up.

8

Global Gaming Business FEBRUARY 2021

Said It”

“That industry is going to be changed, if not permanently, for a long period of time, particularly as business travelers get younger.

They’re more used to technology.

They don’t need the face-to-face interaction.”

—Nevada economist John Restrepo, founder, RCG Economics, who says the Las Vegas convention business may not recover “in my lifetime”

CALENDAR February 16-18: SIGMA Europe. Produced by SIGMA. For more information, visit SIGMA.com.

DIGITAL February 24-25: Ukrainian Gaming Week 2021, IEC Pavilion, Kyiv, Ukraine. Produced by Smile Expos. For more information, visit ugw.com.ua/en. LIVE March 22-24: CasinoBeats Summit, InterContinental, St. Julian’s, Malta. Produced by SBC. For more information, visit SBCEvents.com. LIVE March 23-25: SPICE India, Goa Marriott Resort & Spa, Goa, India. Produced by Eventus International. For more information, visit sportsbettingevents.com. LIVE March 30: Prague Gaming Summit, Vienna House Andel’s Prague, Czech Republic. Produced

by European Gaming Media and Events.

For more information, visit PragueGamingSummit.com. HYBRID May 27-28: SIGMA Asia, SMX Convention Centre, Manila, Philippines. Produced by SiGMA. For more information, visit SiGMA.com. LIVE June 7-10: ICE North America, Hyatt New Orleans. Produced by Clarion Gaming. For more information, visit ICENorthAmerica.com.

LIVE June 8-10: Canadian Gaming Summit, Metro Toronto Convention Centre, Toronto, Ontario.

Produced by the Canadian Gaming Association.

For more information, visit CanadianGamingSummit.com. LIVE June 14-16: International Gaming Summit 2021, Culloden Estate and Spa, Belfast, Northern Ireland. Produced by the International Association of Gaming Advisors (IAGA). For more information, visit TheIAGA.org. LIVE June 29-July 1: ICE London, ExCeL Centre, London. Produced by Clarion Gaming. For more information, visit ICELondon.UK.com. LIVE

Strength in Numbers

More than 180 member companies from 22 countries Nearly $21 billion in direct revenue • 61,700 employees 13 publicly traded companies • ONE POWERFUL VOICE Address worldwide industry regulatory and legislative issues • Discounts on major trade show booth space Promote responsible gaming initiatives • Updates from influential global industry leaders Advertising discounts in leading industry publications • Educational partnerships benefiting students and members Visibility in AGEM’s print advertisements • Exposure for publicly traded companies in the monthly AGEM Index Join AGEM today and work together with the world’s leading gaming suppliers.

Marcus Prater, Executive Director +1 702 812 6932 • marcus.prater@agem.org Tracy Cohen, Director of Europe + 44 (0) 7970 833 543 • tracy.cohen@agem-europe.com Connie Jones, Director of Responsible Gaming +1 702 528 4374 • connie.jones@agem.org Design & photo-illustration by Jeff Farrell.com • AGEM and charter ESP member since 2007.

AGEM.org

©2021 Association of Gaming Equipment Manufacturers (AGEM). Membership list current as of January 2021.

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AMERICAN GAMING ASSOCIATION

Single Purpose When vaccines become widely available, consumer confidence will return and gaming will thrive

by Bill Miller

T

here’s no doubt that 2020 was the most difficult year our industry has ever faced. But amid the uncertainty and economic challenges, together, we made real progress for the gaming industry by achieving historic relief in the CARES Act, advancing payments modernization and continuing to build a robust legal sports betting market.

Despite recent setbacks that have forced tribal and state government leaders to take additional mitigation measures, I remain optimistic for this year. Thanks to the extraordinary efforts of the scientific community, millions of Americans are getting vaccinated, and new therapeutics are being rolled out to help control the pandemic. This will only spur consumer confidence in travel and build on the existing, robust consumer demand for gaming.

We are seeing progress in reopening additional key parts of our businesses like meetings, conventions and entertainment, with industry leaders in Las Vegas and elsewhere piloting and introducing new processes to safely allow larger crowds. This is a vital next step in our industry’s recovery.

The timeline of our recovery has implications well beyond the casino floor. The economic vitality of gaming communities across the country, especially tribal communities, which have been particularly hard-hit, depends on our industry’s full and quick recovery.

As your voice and advocate, the American Gaming Association’s focus in 2021 is singular: accelerate gaming’s recovery. Our team—empowered by our diverse membership—will focus efforts around four key priorities:

Build on our industry’s historic advocacy efforts by securing liability protections for responsi-

ble operators, additional support for tribal nations and incentives to strengthen the travel, meetings and hospitality sectors.

“

The economic vitality of gaming communities across the country, especially tribal communities, which have been particularly hard-hit, depends on our industry’s full and quick recovery.

10

Global Gaming Business FEBRUARY 2021

Develop new champions in Washington, D.C. by

growing the bipartisan Congressional Gaming Caucus, engaging the 45 new members of Congress from gaming states and working with key members of the Biden administration.

Ensure favorable policy environments for gaming at both the federal and state levels by opposing

growth-hindering tax increases, promoting competitive legal sports betting markets, pushing for payments choice on the casino floor and fighting against illegal, unregulated gaming markets and machines.

”

Drive the industry’s position as a leader in responsible reopening, and highlight the vital role

our industry’s recovery will continue to play in the recovery of communities across the country.

While the pace of gaming’s full recovery is still dependent on factors like the speed of vaccine rollouts and control of the pandemic, the lessons we’ve learned throughout the last year have reinforced our resilience and prepared us to successfully navigate the road ahead.

These AGA initiatives—as well at the continued hard work and problem-solving that our industry has demonstrated on a daily basis over the last year—will be key to helping the gaming industry ride out the remainder of the storm into a bright new day.

Bill Miller is president and CEO of the American Gaming Association.

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FANTINI’S FINANCE

Looking Ahead With 2020 in the rearview mirror, what’s on tap for 2021?

W

ith Thank-Goodness-2020-IsOver now well behind us, here are some thoughts for 2021: • The Biden presidency means that ideologically driven attacks on gaming will end. Specifically, the U.S. Department of Justice will not pursue the last administration’s view that the 1961 Wire Act bans all interstate online gambling.

In other words, the way is clear for states to continue legalizing online casino games, lotteries and sports betting—not that they weren’t acting on that basis, anyway.

Likewise, investors can have more confidence that the iGaming and sports-betting plays that have benefited to date will continue to benefit.

Tribal gaming will also benefit. The Biden administration won’t try to stymie efforts by tribes such as the Mashpee Wampanoags, who want to build a casino in Taunton, Massachusetts. With Native American Deb Haaland as secretary of the Department of Interior, a more friendly government is practically a given.

In addition, a Democratic Congress and the Biden administration are more likely to provide legislation as needed to clarify Indian gaming rights. We might finally get the so-called “Carcieri fix,” for example, which would assure that tribes given federal recognition by the Interior Department will have gaming rights, just as those cited in the 1934 Indian Reorganization Act. • Covid-19. The pandemic will fade and as it does, life will normalize. A complete return to normal, however, is unlikely until 2022. After that, look out. It could be gangbusters.

There are risks of a mutating virus and obstacles to expeditiously achieving herd immunity.

But the chances of more extensive lockdowns should diminish as policymakers have a greater understanding of the harm that universal or lengthy lockdowns create, and as more therapeutics are developed and used.

For investors—many of whom are eager to jump back in ahead of full recovery in the under-

12

By Frank Fantini

lying businesses—the greater risk might be understanding if and when stocks get ahead of themselves.

• The economy. The biggest challenge for President Biden will be to not mess up a good thing. The reality is that, pandemic aside, the underlying economy is strong. Whether Biden can resist the pressures within his party to spend wildly and feed forces that can undermine the economy will be the big question.

• Las Vegas vs. regional casino operators. The conventional wisdom is that regional

markets will recover more quickly than Las Vegas.

However, that phenomenon perhaps already is largely played out. By sometime in 2021, regional markets will have normalized, and it will be Las Vegas growth that continues to accelerate.

By the second half of the year, as stocks trade on 2022 expectations, Las Vegas-centric stocks might accelerate faster, too.

It’s no secret that I’m a fan of Golden Entertainment. In the environment mentioned above, Golden’s stock should benefit as it enjoys the return of regional gaming, a Las Vegas Strip rebound, and the continued population growth of southern Nevada.

Red Rock Resorts and Boyd Gaming will benefit from the same dynamics, with Boyd also benefiting from its geographic diversity and the proliferation of sports betting.

• Sports betting and iGaming. It’s also no secret that I have more modest expectations on the revenue potential of U.S. digital gaming.

However, digital will become a huge market, regardless of whose forecasts prove true.

My guess is that the stocks of land-based gaming operators and mixed-product suppliers have already gotten a good deal of the benefit they can expect over the next year or two. The way to go in the near future might be the relatively small, pure-play companies focused on profitability that haven’t reached outrageous valuations, namely recently-gone-public Rush Street Interactive and Golden Nugget Online.

My other expectation: As in the early years of

Global Gaming Business FEBRUARY 2021

riverboat casinos, there are lots of companies entering the space, many with few resources. As in that era, this presents investors with high risk-high reward opportunities to find the Ameristars of the digital world. Or the new Harrah’s or Penn National, which grew by scarfing up the little guys that couldn’t make it.

• Selling picks and shovels. As with the Gold Rush analogy, the digital companies that most benefit might be the technology providers, such as IGT, Scientific Games, or among pure plays, Kambi and GAN. Meanwhile, while much attention goes to iGaming and sports betting, there’s another gaming sector to benefit from the digital trends: lotteries.

Currently, nine states have iLotteries. That number is expected to reach 30 or more, much to the benefit of IGT, Scientific Games and Intralot.

Two small companies that have especially benefitted so far are newly public NeoGames and Toronto-listed Pollard Banknote, whose iLottery joint venture already serves four of those nine states.

• Gaming technology. Slots aren’t so hot, as the benefits of new casino openings are likely to be offset by operators reducing the number of machines in their properties.

But gaming suppliers have growth opportunities as they increasingly transform into true technology companies. They will provide more meaningful products and services to digital gaming as cashless gaming puts them into the growing electronic-payments space.

• SPACs are here to stay. SPACs are a productive way for companies to go public. Matt Davey, whose SPAC Tekkorp is seeking a gaming technology merger, explains the advantages of SPACs in this video interview I conducted recently: www.youtube.com/watch?v=OIawV2TK6jc&feature=youtu.be.

Frank Fantini is the editor and publisher of Fantini’s Gaming Report. For a free 30-day trial subscription email subscriptions@fantiniresearch.com.

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AGEMupdate AGEM MEMBER PROFILE CS-1 Transportation Inc. is a recognized logistics provider with demonstrated capabilities in the gaming industry. The corporate headquarters resides in Burlington, Ontario (Toronto) with the U.S. Operations Office in Phoenix, Arizona supporting numerous sales offices across the U.S., including Las Vegas. The Las Vegas office focuses on the compliant movement of games from manufacturers across the U.S. and Canada to primarily casinos in sealed air ride trucks of various sizes.

In addition, CS-1 gathers attention from gaming manufacturers by reliably supporting their supply chain and keeping production lines on schedule. The company provides truckload, less-than-truckload, and temp sensitive shipping options to customers across North America.

Communications and technology are key components to the success of all shipments. Trucks are monitored via satellite or Macropoint by the CS-1 staff. All shipments are tracked 24/7/365 to confirm location and timely delivery. Updates on pickup, progress and final delivery are shared with accounts throughout the transport process. This is extremely important on compliant game deliveries to casinos that require coordination with officials, technicians and casino representatives.

CS-1 stands for “Customer Service First,” and that is accomplished by following the guiding principles of the company by talented employees with the goal of totally satisfying all CS-1 customers, and their customers.

These guiding principles include: • Customers’ interests always come first.

• Truth and honesty are the core of our business practices.

• We stress creativity and imagination.

• Teamwork is crucial.

• We are constantly adapting.

Adhering to these principals has led to several awards in the marketplace, including being named to “Canada’s Fastest Growing Companies Hot 500 for Growth/Profit” in each of the last four years.

CS-1 has been an Associate Member of AGEM since 2019. AGEM has been an asset to the company by keeping CS-1 current on trends that drive gaming logistics issues. CS-1 is also highly active in the industry, attending numerous gaming trade shows in the U.S. and Canada and most recently participating in webinars presented by tribal entities and other industry leaders.

Learn more about CS-1 Transportation Inc. by visiting the company’s website at www.shipcs1.com or contact Jeff Sulick at jeff.sulick@shipcs1.com or by phone at 602-999-9550.

AGEM Board of Directors Actions for January 2021 • The 2021 AGEM monthly board meeting kicked off with the election of AGEM Officers, after a slate was presented to members at the December meeting. A motion was carried to confirm the new board, which consists of the new President David Lucchese, Everi, who will serve a two-year term. Also new to the board is Vice President Elaine Hodgson, Incredible Technologies, who joins Vice President Tom Jingoli, Konami; Vice President Luke Orchard, IGT; Vice President Bob Parente, Scientific Games; Secretary Eric Fisher, Crane Payment Innovations (CPI); Treasurer Hector Fernandez, Aristocrat; and General Counsel Daron Dorsey, Ainsworth, who will all serve one-year terms.

• Following his appointment in November, the new chairman of the Nevada Gaming Control Board, J. Brin Gibson, introduced himself to the AGEM membership with a short presentation at the recent board meeting. Along with Technology Chief Jim Barbee, Chairman Gibson shared some of the items they plan to work on this year along with a view of the important issues the industry needs to focus on to aid recovery as we start to emerge from the pandemic. The importance of technology and innovation as well as focusing on data protection and cybersecurity will be paramount as the industry moves more towards online platforms and potentially cloud-based technology. He reiterated the GCB is focused on working with and supporting suppliers to spearhead recovery, and looks forward to establishing an effective partnership that will ensure the industry emerges stronger.

• Discussions recently reached a positive and solid conclusion regarding AGEM’s contract with Reed Expo and American Gaming Association (AGA) in relation to the Global Gaming Expo trade show.

AGEM’s contract, previously reviewed every 10 years, allowed AGEM to have a strong influence on certain aspects of the show, but no say in major decisions. The new terms of the contract will now be reviewed every five years, and includes an addendum that accomplishes multiple items that will benefit AGEM’s members, who ultimately are the main financial contributors to the show. A steering committee will be established with two members each from AGEM, AGA and Reed who will meet four times a year to decide major issues that ultimately shape the show.

• AGEM suspended the collection of 2020 fiscal year renewal dues from existing members last April in light of the pandemic and the unprecedented challenges with which the global gaming supplier industry was confronted. AGEM was able to sustain the lack of income up until now but has made the decision to reinstate membership dues from April 1.

• NevadaWorksTogether.com and TheManufacturingInstitute.org remain active resources for gaming employees impacted by the virus to explore opportunities in other industries. Nevada Industry Excellence has secured funding for a new training program that gives up to $2,700 per hire for cross-training gaming employees to work in new industries. This funding is also available to gaming suppliers that hire employees from outside the industry.

Forthcoming Events • The organizers of the NIGA trade show have made the decision to postpone the 2021 event originally slated to take place in April in San Diego, but have not determined future dates. Possibilities include moving the dates to June in New Orleans or July in Las Vegas.

AGEMindex

The AGEM Index improved by 60.18 points in December to 691.9 points, a 9.5 percent gain from November 2020. Overall, the majority of AGEM Index companies reported gains in stock price over the month, with nine trending positively and four moving negatively. The AGEM Index’s growth was due in large part to an increase in the stock price of International Game Technology PLC (IGT). The company’s stock grew 34.6 percent and contributed 20.13 points to the AGEM Index’s December gain. Additionally, the stock price for Crane Co. (CR) increased 11.7 percent, which led to an index contribution of 8.86 points. The major stock indices also performed well, as the NASDAQ and the S&P 500 climbed by 3.5 percent and 1.2 percent, respectively, while the Dow Jones Industrial Average grew by 0.5 percent.

FEBRUARY 2021 www.ggbmagazine.com

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Helping Consumers Love Your

❤ Brand

Creating brand love is creating loyalty.

But creating loyalty is a complex, multi-layered process.

By Julia Carcamo

M

arketing expert David Meerman Scott recently challenged my thinking. During a live stream, he asked, “Do you want loyalty, or do you want fans?”

The question stayed with me. Casino marketers seem to be perpetually focused on the concept of loyalty. The reality is that even our most loyal guests can be “disloyal” at times—spending their time and dollars on a competitor, and more currently, on other entertainment options.

If there was a silver lining to 2020, it was that we learned many lessons— as people, as parents, as homebound workers, as consumers. For marketers, the most important lesson was that our tried-and-true programs are no longer our go-to’s. We learned we need to be much more connected and responsive.

Nothing is status quo anymore.

The time has come to invest in genuine connections with our guests, building relationships so strong that they will come to our defense and support, no matter what. We need to invest in a love affair with our customers, and the month of February seems like a great time to start.

Our creative director, Skeet Hanks, compares marketing to dating. We start as strangers (think new member). After a few interactions, we become acquainted with our guests. And after we successfully deliver our brand promise to them, repeatedly, we move into a friendship stage. See where I’m going?

When guests see a consistent delivery of positive brand experiences and experience mutual trust, a romance begins to blossom. They begin to let emotions drive some of their decision-making. As brands, we begin to have a role in their lives. Soon, they’re our most dedicated fans. As long as we deliver the excitement of the brand promise that attracted them in the first place, we can

14

Global Gaming Business FEBRUARY 2021

live happily ever after.

As casino marketers, we accept that some guests like us (because their ADT and visits tell us so). But are we sure? Given a choice of two brands offering nearly identical offerings—say, like two casinos—which would they choose?

In a 1986 interview in U.S. News & World Report, Elie Wiesel remarked, “The opposite of love is not hate. It’s indifference.” Too often, in our rush to make our numbers, we lose sight of creating love. We find that our guests feel indifferent about their investment in us.

p. 14 brand:Layout 1 1/13/21 2:36 PM Page 15

who love our brands will voluntarily tell their ❤ Those network and share their stories.

Brands become indifferent in the consumer’s mind because they fail to stand for anything. They fail to cement a spot in the consumer’s mind and heart. They’re not better, different or cheaper in the consumer’s mind. By failing to create connections with consumers, brands potentially invite fewer repeat visits, lower visit spend and lower brand loyalty scores. Indifferent brands are often characterized as being too product-focused. Acting like commodities, they fail to separate themselves from the competition.

Indifferent brands often rely on price promotions to drive volume. This approach can squeeze margins for retailers, but for casino operators, it can mean we’re quickly upside-down in our reinvestment and offers. Without a unique ownable position in the consumer’s heart and mind, investment in advertising and innovation becomes harder to justify.

But with brand love, guests will spend more time and money with you, improving marketing program ROI. Ad recall and brand tracking scores may increase. Guests will be invested in your success at a profound level.

For example, when Golden Nugget Las Vegas Vice President of Marketing and Advertising Holly O’Brien participated in a post-Covid reopening discussion, she commented that the most loyal of their guests were following protocols rather strictly. It appeared this particular guest segment felt invested in the success of the reopening. That comment hit home for me.

There’s little disagreement that those who love our brands will voluntarily tell their network and share their stories. Plus, we may be more successful with our new product because our most loyal guests will be automatically curious about what’s new.

Lastly, our internal stakeholders will become much more active. Brainstorming sessions will be a draw rather than another meeting, and our vendor partners are more likely to be excited to be a part of our circle, even going so far as bragging.

Love Is in the Air Examples of brand love are all around us, typically in other industries. With love comes bigger news stories, and there’s no reason we can’t get there.

The casino industry is rich with history of iconic brands. The brands rose to that level because of customers who loved, cherished and possibly defended the brands. It’s one of the reasons I’m so excited to see Bally’s rise

from the proverbial ashes. It’s why, with a rich history of its own, Eldorado chose to adopt the Caesars moniker. Iconic brands in our industry have created near-magical experiences that inspired generations.

Modern-day brand love shows up in a variety of ways.

It is no surprise to find Instagram, Google, Apple, Spotify and Amazon holding the Top 5 spots in the NetBase Brand Passion Report: Top Global Brands Love List 2019. Brands like Apple, Nike and Sephora have developed an almost cult-like following. How else would you explain standing in line (seemingly immune to the high price point) for a new piece of technology that you could easily order if you were willing to wait a week? How else to explain the tattooing of a brand logo on someone’s body?

Away luggage found a unique way to solve the issue of carry-on luggage. As airlines became much stricter with carry-ons, travelers dreaded discovering that their carefully packed bags were too big for the airplane bins. Away eliminated this issue and in doing so, created a cult-like following. As a perpetual no-carry-on traveler, my biggest complaint is picking up damaged luggage at the airport carousel. Briggs & Riley’s no-fault luggage repair means I no longer worry about it. That company shows love for me by not asking questions and getting the job done. I love the company in return and recommend it to others.

How Do You Create Love?

In the 2004 publication The Lovemarks Effect, Kevin Roberts proposed a theory that three factors create love for a brand: • Mystery – Does it inspire the customer?

• Sensuality – Is the brand experienced with the senses?

• Intimacy – Can an emotional relationship be created?

The first step is to understand where you are on the relationship spectrum. Then you can focus on moving your relationship along. Are you still a bit of an unknown? Have you succumbed to temptation and fallen into indifference? Are consumers starting to fall in love?

Getting to Know You If you’re in the unknown stage (for instance, expanding into a new marFEBRUARY 2021 www.ggbmagazine.com

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guests start to engage with you and show they like you, ❤ When it’s time to separate even more from the pack and create unique experiences.

ket), you want to focus on standing out and being noticed. Understand the consumer benefit, and create an expression of that benefit. Then build everything around that idea, both internally and externally. Passionately express that position and promise until it becomes a rallying point.

Most importantly, keep your focus steady. At this stage, it’s tempting to throw out one idea for the other when you don’t get immediate results. Remember the dating scenario. We don’t often strike gold on the first pass.

Develop an action plan for this stage in your brand-love journey. Include core messages, marketing communications and the guest and team-member journeys. Launch this initiative to build awareness with all your stakeholders.

Use the energy of your early adopters for momentum.

For indifferent brands, the focus should be to establish a clear position and differentiation in the consumer’s mind. It would be best if you focused on proving the differentiation point that drew your early adopters. Cement your idea, so you can stand apart from the clutter in the market. Continue to put passion and emotion into your touchpoints.

Are you finding your brand at the point of indifference? You should develop a new or evolved positioning or perhaps reinforce your current positioning to shift the current mindset. Examine the gaps between the brand promise and the experience. Find ways to fill them.

Additionally, it would help if you increased the share of mind. Whether that means expanding advertising or increasing mail and touchpoints, you want to draw more attention to yourself (than your competitors) by proving you’re better or different. This stage is an excellent opportunity to rely on the PESO Model approach to your communications.

I Think I Like You When guests start to engage with you and show they like you, it’s time to separate even more from the pack and create unique experiences. With an established success in the market, your brand promise is what guests want, yet they may lack your brand’s emotional bond.

Many marketers err by assuming the engagement can continue without assistance. They might cut back on touchpoints such as advertising. At this stage, you can become more vulnerable as competitors move in and build up their 16

Global Gaming Business FEBRUARY 2021

awareness, tempting guests to turn elsewhere. As a result, a brand can end up spending more on promotions to regain the lost attachment. Rather than reducing or eliminating touchpoints, consider layering in emotional benefits to create stronger bonds.

Your action plan is all about increasing visits and spend, adding to the guest experience by cross-selling and creating a routine around your brand.

Once love starts to blossom, keep tugging at the emotions and cement your bond with your most loyal guests so they’ll begin to speak on your behalf. At this stage, brands should see further increases in visits and spend as the brand becomes a significant part of the guest’s life. We often see this happening at the VIP level, where hosts become like family. They start celebrating life events with guests, just as they would with their real families.

While marketing spend on each person may be higher, the return for that investment becomes a more significant percentage. Marketing is more efficient as it opens up a pathway to increase revenue. Moreover, net promoter scores, word-ofmouth marketing and positive reviews increase.

But there’s still work to be done. At this stage, brands must continue to identify unique ways to tighten the bonds with their most valued guests: • Create a community of brand fans.

• Create brand rituals that will be special to the guests by building memories.

• Continually challenge and perfect the guest experience.

• Identify gaps and fill them before the competition does.

Customers can love a brand for years, and in some cases, all their lives. Besotted customers will forgive mistakes and look to contribute to the success of the brand. However, unlike the kind of unconditional love between two people, the love between a consumer and a brand is somewhat one-sided. Consumers can quickly fall out of love with brands that don’t continue to differentiate themselves or provide great guest experiences.

Roses are red. Violets are blue. Love makes customers choose you.

Julia Carcamo is president and chief brand strategist at J Carcamo & Associates. She writes on a variety of casino and general marketing topics, including the new book Reel Marketing, and established the Casino Marketing Boot Camp. Reach her at Julia@jcarcamoassociates.com.

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Show Me the Money Sportsbooks have always been a low-margin business. With their proliferation the past two years, complete with a host of prop bets, who has gotten the most of that profit?

By Roger Gros

I

t was considered the “golden goose” when the Professional and Amateur Sports Protection Act was repealed by the Supreme Court in 2018.

Sports betting was the street paved in gold, and all you had to do was start up a company and you’d be rolling in riches.

Any casino operator, however, knew that wasn’t the case. For decades, legal sports betting in Nevada was considered just an amenity—something that might lead to table play or slot machine madness but certainly delivers non-gaming revenue. The sports betting margins were razor thin, and the books themselves often lost money on an active weekend.

So where was all this enthusiasm coming from when sports betting suddenly became legal? States were promised hundreds of millions in tax revenue.

Analysts upgraded gaming companies that were in the space or about to enter.

Sports leagues, once fiercely opposed to sports betting, suddenly were fans.

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Global Gaming Business FEBRUARY 2021

So where is that golden goose? Where is that city with golden streets?

Not on the bottom line, that’s for sure.

According to analysts, the only companies making money on sports betting these days are the suppliers. And there are many suppliers to satisfy the technology, compliance and integrity of sports betting—platform providers to “skin” holders, data compilers, payment processors, geolocators, ticket writers and many more. They each get a piece of the revenue before the operator sees a penny.

So when can we expect operators to get their piece of the pie?

Eilers & Krejcik Gaming put out a report recently that showed new online sportsbooks can expect to lose money—not much, only 2 cents on the dollar—until the market matures. But when the market matures and the survivors are determined, profits can reach almost 20 percent.

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A startup sportsbook will use more than

60 % of its available revenue

on bonusing, marketing and taxes.

Supply Side But that’s a long way off, according to Joe Asher, the CEO of William Hill US. He says investments into new jurisdictions will eat up profits for most companies the foreseeable future.

“We’re lucky in that we have had our Nevada operations in place for years and we’re able to use the profits there to fund some of our expansion in other states,” he says. “But you also have to remember we’re in the early days of this industry, and it’s going to take some time to establish yourself.”

The EKG report shows why. A startup sportsbook will use more than 60 percent of its available revenue on bonusing, marketing and taxes.

According to Chris Grove, a partner in EKG, that’s a problem.

“The headline really is that operators are unlikely to generate meaningful bottom-line revenue from sports betting for the near- to midterm,” he says. “This is going to be a business that is all about reinvestment. And the relatively tight margins are going to be driven by pretty intense competition.”

According to John English, a partner with Global Market Advisors, it will be a while because of these ancillary costs.

“We hear it’s a $40 billion- to $50 billion-a-year industry,” he explains.

“But by the time we get all the taxes, fees and suppliers taken care of, it’s down to $11 billion in all the U.S. That’s for everyone to split from every state. So it’s still a narrow-margin business.”

For Dermot Smurfit, the CEO of technology provider GAN, sports betting is going to take a while to become profitable—multiple years.

“I don’t think it’s six to 12 months,” he says. “It’s a much longer investment side, but is that a decade, is that five years, is that longer? But it won’t be until they are operating at very significant scale.”

According to the EKG report, suppliers eat up a smaller percentage of the revenue than expected, particularly in a mature market—a little less than 25 percent. In a mature market, that percentage slides to around 20 percent.

Dave McDowell, the CEO of FSB, a leading fullservice sportsbook provider, says his company can help create profitability.

“The manner in “Our proprietary technology allows us to which we drive do two things better,” he explains. “First, we our customers’ can drastically reduce the operating costs, which leaves more money to be recycled into profitability marketing. Second, we use our technology advaries for each vantage to help our partners to differentiate customer based their offering in a way that allows them to sucon their business cessfully acquire and retain customers. Each operator is different, and each operator is model.” targeting a different customer segment, and —Matteo Carli, Senior that is where our flexible implementation opVice President of Global tions come into play.”

PlaySports, IGT Driving profitability can vary according to the operator involved, according to Matteo Carli, IGT senior vice president of global PlaySports, poker and ETG, who is in charge of IGT’s PlaySports betting platform.

“The manner in which we drive our customers’ profitability varies for each customer based on their business model,” Carli says. “For example, for FanFEBRUARY 2021 www.ggbmagazine.com

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“In-play betting drives consumer engagement, and that increases turnover. So regardless of how much cash is taken pre-game, increasing turnover with more in-play options will lead to increased profits.”

—Dave McDowell, CEO, FSB

“Pennsylvania, where the effective rate is 41 cents on every dollar, along with a $10 million license fee, would have been prohibitive if it wasn’t for online gaming.”

Duel, time-to-market is absolutely critical.

When entering a new market, customer acquisition is a cornerstone to a large B2C brand’s success, so helping FanDuel quickly establish their presence in a new state will support their growth efforts.

“In the case of our regional turnkey customers who use the IGT in-house trad—Dermot Smurfit, ing and risk management services, IGT is CEO, GAN directly involved in a sportsbook’s day-today profitability. Our highly knowledgeable, U.S.-based trading team takes a ‘portfolio-based approach’ in supplying non-stop market monitoring and providing competitive pricing based on bespoke risk profiles, taking into account a multitude of variables such as player analysis, market conditions, injuries, public perception, weather and more.

Then, the PlaySports platform’s integrated PAM enables us to help our customers to create customized player offers and promotions that drive customer acquisition and retention.”

Smurfit says the operator and supplier grow together.

“So even though we insist on pretty skinny revenue shares, as a general rule, it’s a business model that’s positioned for profitability,” he says. “Once you get your costs covered setting up a new client, then you launch the client.

Then you grow with the client and you can share in their business as a small, absolute percentage.”

In states where casinos and/or racetracks are the only entities licensed to conduct sports betting, they frequently are permitted to sub-license “skins”—a separate and distinct brand—for a fee. English says that’s where profitability lies for the casinos.

“Casinos get something like 5 percent of their profits for doing nothing,” he says. “They’re leaving everything to the operators, and then the operators pay a percentage back. They’ve got nothing to lose.”

The biggest costs of operating an online sportsbook are marketing and bonusing. And it’s the level that a sportsbook operator is willing to invest that may determine profitability.

Grove says that your target market can also determine how quickly you become profitable. He points out that many books today have limits that discourage “sharp” bettors—the sports betting high rollers—from participating.

“The implications of that strategy are probably lower volume, better margins and maybe worse lines ultimately, because sharp action is a good way to hone your line,” he says. “I think ultimately sports betting is a mass-market product. And the absence of that sharp action is probably not going to make a

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Global Gaming Business FEBRUARY 2021

huge difference to the industry at large. I also suspect you’ll see, at least through the medium term, a book that may be willing to take more of that sharp action as a way to differentiate themselves in a crowded field.

So I think that will paper over the difference for the industry at large, for a while, but ultimately sharp action is a non-profitable segment.”

Tax Time Taxes eat into profitability, particularly in states that set them too high.

But according to Smurfit, outside of Pennsylvania, most states have a reasonable rate. And even in Pennsylvania, there’s a silver lining.

“Pennsylvania, where the effective rate is 41 cents on every dollar, along with a $10 million license fee, would have been prohibitive if it wasn’t for online gaming,” Smurfit says. “CEOs of the larger companies who have spoken publicly about it say, ‘Thank goodness we have online casino, because that’s the only way we can make money today.’”

English believes that there will be some repercussions from such a high tax bill.

“Do you pass that on to the customer here?” he asks. “Do you do a 120 instead of -110? I don’t think customers will go for that. I don’t think that customers will go offshore, but they might go across the river, and you’ll lose business. They’re not going to pay the extra juice if they don’t have to, so I think it has to be absorbed.”

Grove says Pennsylvania is a bit of an outlier, and that the tax rate really hasn’t resulted in any measurable impact on operations or the odds offered to the players.

“What we’ve seen is maybe a slightly depressed promotional climate, a slightly depressed acquisition environment, or maybe you’re not seeing operators be as willing to take the blank check approach with some of their Pennsylvania competitors. But honestly, no one is really that concerned about making money now that you already have the sunk the cost of the $10 million license fee.

“I don’t know that there’s a massive difference at this stage between how a 20 percent tax rate market and a 36 percent tax rate market are are going to behave. I think the difference will be on the margins, and then once market share settles, you’ll start to see more significant distinctions emerge between the high-tax and the low-tax markets.”

Asher is more realistic about tax rates, whatever they are.

“Tax rates are one of the costs of doing business,” he points out, “and that includes the federal excise tax on wagers. It clearly affects the amount you can afford to invest in a given state.”

He also believes that Pennsylvania isn’t the model other states are fol-

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lowing.

“Most states have come in with a “All the capacity is level of taxation that allows comthere in the U.S. right panies to access the market,” he now. And I think it’s says. “It creates jobs and helps to establish a foundation under the just a matter of the industry.” market continuing to McDowell echoes that sentimature, and operators ment and explains what happened continuing to roll out in the U.K. when the government imposed a tax rate on businesses a full product.” that previously paid almost noth—Chris Grove, Partner, EKG ing at all.

“Nobody likes to pay high taxes, but we all know that positive regulation opens up the market and provides better consumer protections,” he says. “If the taxes are too high then operators need to respond with worse pricing, and it becomes more difficult to shut down the black market.

“When the U.K. market implemented point of consumption taxation in 2015, gaming duty went from next to nothing to 15 percent. This kicked off a huge wave of consolidation and closures, and less efficient operators simply could not compete without scale to offset their huge operating costs. By using modern technology to keep operating costs to a minimum and better differentiate new brands in the market, FSB has helped independent operators to compete and steal market share from the larger, legacy operators.”

Critical Mass The economics of sports betting dictate that more profits come when more money is wagered. And one of the fastest growing segments of sports wagering is in-play or in-game betting. McDowell explains how it worked when it was introduced in Europe.

“In-play wagering fundamentally changed the European betting industry almost 15 years ago, and there is no doubt in my mind that the U.S. consumer will embrace in-play wagering, including cash-out functionality,” he explains.

“Today, consumers are still grappling with the concept of even having a place to bet legally, but they will very quickly come to expect the ability to wager on the outcome of the next drive or the next player to step up to the plate. In-play betting drives consumer engagement, and that increases turnover. So regardless of how much cash is taken pre-game, increasing turnover with more in-play options will lead to increased profits.”

Smurfit agrees that in-play wagering will be additive to the industry.

“It’s really important,” he says. “Let’s skip back

two years ago when in-play was only about 12 percent of total sports bets placed. The majority of sports bets at that time were pregame. But it’s been growing steadily. Today it’s well in excess of 20 percent heading to 25 percent and 30 percent. So the difference with in-running sports gambling is that it transforms sports betting from a pistol into an assault rifle. It’s where the high-margin revenues arrive. It’s making between 7 percent and 10 percent margin because they tend to be more emotional when they bet ingame versus pre-game. We believe that in-running betting is actually incredibly important for the profitability signature.”

Asher agrees that in-play betting is important, but it’s already established, and will play only a small role in increased profitability.

“In-play wagering has been a significant part of the betting in Nevada and other states for a number of years,” he explains. “Most of the in-play bets are made on the outcome of the game—who’s going to win the game.

The subsets of a game—inning by inning in a baseball game or set by set in tennis—are a different dynamic. In-play is already a big part of U.S. sports betting.”

Grove agrees with Asher’s assessment, even in Europe today where inplace amounts to more than 50 percent of the handle.

“There’s also something of a mythology that’s sprung up around inplay betting, but the reality is the most in-play betting in Europe is on who’s going to win and by how much,” he says. “It’s not these crazy micromarkets like will the next pitch be a strike or a ball or will they run or pass on the next play.”

“I don’t necessarily view more in-play betting as a one-for-one path to more profits,” notes IGT’s Carli. “What more in-play wagering will do, however, is increase engagement, which often leads to increased wagering, and ultimately more liquidity.

“In segments such as sports betting where there is inherent risk, increased liquidity reduces the risk of the overall enterprise over time by containing volatility. This notion of engagement driving profits and growth is true in most forms of entertainment, retail and mobile, and I believe it reasonably applies to sports betting.”

“All the capacity is there in the U.S. right now,” says Grove. “And I think it’s just a matter of the market continuing to mature, and operators continuing to roll out a full product.”

The economics of sports betting dictate that more profits come when more money is wagered. And one of the fastest growing Consolidation segments of sports During the heady days of gaming’s expanwagering is in-play or sion in the 1980s and ’90s, dozens of gaming operators were born. It didn’t take long for the strong to survive and the weak to in-game betting.

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Global Gaming Business FEBRUARY 2021

succumb. Will that be the case with the online sports betting businesses?

S T

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Asher, whose company has a purchase agreement from Caesars Entertainment, believes consolidation will happen but the timeline is still a little hazy.

“We have all these new states opening up and people are busy positioning themselves,” he says. “No one is thinking about consolidation right now, but clearly it will come.”

Grove agrees it’s coming but unsure how quickly.

“I think that you will see the status quo persists for probably a couple of more years,” he says, “because there will still be enough future ahead and still enough uncertainty that even if someone isn’t gaining share today, they can still tell a story about how they might gain share tomorrow. But eventually we’re going to run out of tomorrows.”

He also sees a problem in consolidation in that it may not be accretive to the purchaser.

“If I have 50 percent of the market and you’re a struggling sportsbook in state X with maybe 5 percent of the market, well, how much of your 5 percent is really additive to the players I already have? We probably have overlap of at a minimum 30 percent and a maximum 80 percent or 90 percent. So there’s a tough question about whether consolidation makes sense.”

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English says consolidation is already happening.

“There’s going to be consolidation, no doubt about it,” he says. “You can already smell it in the air. It’s already starting to happen. Sportsbooks are already talking to sportsbooks about buying each other. It’s, ‘Do we start from scratch or do we buy somebody?’ I’m going to venture to guess in states like Iowa and Colorado, with very competitive markets and only so many customers to go around, there’s only so much you can give away for incentives.

So I think we’re going to see some markets consolidate sooner than others, and that will be a good thing.”

Smurfit disagrees. He thinks no one will consider consolidation until the U.S. is a mature market, and that is many years away.

“I don’t see any B2C operators combining forces with anybody else, anytime soon,” he states. “The simple reason is there’s a ton of growth in the U.S., so any of the major U.S. operators, why would they buy a competing online operator?”

The real golden goose and pot at the end of the rainbow, according to Smurfit, is the online casino most always connected to an online sportsbook.

“That is the gift that keeps on giving, and that’s what’s powered European sports and online casino operators for years,” he says. “And the same will be true here in United States.”

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The Mirage: The Casino That Changed Everything This spectacular property was only a reflection of customer service, and laid the groundwork for the integrated resort of today

By Andrew Klebanow and Arte Nathan

T

he integrated casino resorts that can be found in Las Vegas, most other U.S. jurisdictions, Singapore and in Macau are each unique in design, theme and mix of amenities. Yet each has a lineage to one property: the Mirage Casino Resort in Las Vegas.

Thirty-one years ago, the Mirage ushered in the era of the integrated casino resort. The master-planned property changed how people view casinos and how casino operators view their businesses.

The Mirage changed the face of casino design, elevated dining and entertainment to new levels, and created a new paradigm in service and employee relations. It changed how developers approach casino development and how customers see casinos as vacation experiences. It challenged operators to seek a broader mix of gaming and non-gaming customers.

In fact, the Mirage was the casino that changed everything.

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Global Gaming Business FEBRUARY 2021

Employee Relations To understand how the Mirage changed the gaming industry, it’s important to appreciate what Las Vegas was like before the Mirage.

In the mid-1980s, with casino gambling available in Atlantic City, tourism growth into Las Vegas slowed. Five years after a bitter 1984 citywide strike, relations between management and employees remained divisive. Policies at some casinos encouraged segregation between union members and managers. It was common practice for managers, supervisors and exempt (non-union) employees to take their meals in the casino buffet or coffee shop, while unionized employees ate their meals in the employee dining room, often called “the Helps Hall.�

The latter dining experience, rarely memorable, fueled a caustic employee culture at many properties that negatively affected customer service.

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When Steve Wynn started assembling the Mirage team, he included a mix of people who had worked for him in Las Vegas and Atlantic City: Bobby Baldwin was tapped to be president, Doug Pool to be CFO, and Arte Nathan was in charge of human resources. The first thing he told them was that the Mirage would never be about the building, but about the employees and their commitment to the promise of excellence.

This core management team put that mission into operational practice. The first key element would be a new union contract. Nathan and Golden Nugget President Barry Shier were tasked

by Wynn to begin negotiations with John Wilhelm and D. Taylor of the Culinary Union. Their goal was to streamline a cumbersome existing contract so that it allowed management and workers to partner in making the business better and more secure for all employees. That new contract became the cornerstone of Wynn’s employee relations philosophies, and set the course for years of labor peace for the company.

With that in place, Nathan launched a massive recruitment effort. At the time, Wynn only operated the Golden Nugget and could not afford to take all its employees to his new resort. That meant creating a recruitment center and hiring process that would attract thousands of other casino and hospitality employees.

Nearly 55,000 applications were received to fill the 4,000 positions not previously awarded to employees transferring from the Nugget. The company’s hiring managers were encouraged to “Hire for Attitude and Train for Skills.” The people hired were optimistic, flexible and committed to the Mirage’s commitment to extraordinary customer service.

Wynn’s and Baldwin’s design concepts carried over to a back-of-the-house every bit as bold and beautiful as the front-of-house customer areas.

Customers had a volcano, an atrium and a fish tank. Employees had a staff dining room that was every bit as good as any customer restaurant and became the talk of the town.

The Mirage under construction

Arte Nathan crafted the employee handbook for The Mirage

The Siegfried & Roy Showroom changed the way people attended shows in Vegas

FEBRUARY 2021 www.ggbmagazine.com

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Steve Wynn empowered employees to deliver the best customer service to guests

Bobby Baldwin was the first president of The Mirage

Combined with management practices such as “catching people doing things right” and “explaining why,” employees were treated like guests and inspired to make the Mirage great. Greeting the new team at the opening orientation, Wynn stressed that employee satisfaction is directly related to customer satisfaction and profitability, and he would double down on creating extraordinary employee satisfaction.

Measuring the impact of concepts like these is usually a difficult proposition, but in actuality, they resulted in a 12 percent annualized turnover rate for employees in the Mirage’s first year of operation (in comparison to more than an average of 50 percent in the industry), and 10 years without a single union grievance or arbitration.

Master-Planned for Guest Service At 3,044 lodging keys, the Mirage was one of the largest hotels in the world and at the time, the first to be constructed in Las Vegas in more than 15 years. Built at a cost of $630 million, it also was the most expensive hotel in history, and there were sound reasons why it cost so much.

The Mirage was designed with guest service as its guiding principle.

The Y-shaped hotel tower and 24-elevator core limited the distance guests would have to walk to their rooms. That design can now be found in integrated resorts throughout the world.

The hotel also featured an additional six elevators solely for back-ofhouse personnel, and this investment, too, was driven by customer service. Room-service waiters did not have to compete with housekeeping personnel for available elevators, and could deliver meals promptly and at the proper temperature. Housekeeping, in turn, could move soft goods and quickly service guest rooms. Back-of-house transit corridors were built wide to allow for the seamless movement of employees and products.

A new approach to the movement of guests’ luggage was adopted after studying how luggage moved through O’Hare International Airport. A baggage conveyor system transported guests’ luggage from curbside to a mezzanine holding area. Bellmen were alerted as soon as a guest inserted his or her key card, and baggage was then promptly delivered to the guest room. Delivery times were monitored electronically, so service standards could be measured.

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Perhaps the most important attribute of these design innovations is that they managed the interaction of guests, employees, products and services. The master plan examined how products were received and stored, as well as how employees entered the building, retrieved their uniforms and entered their work areas.

Most important, it paid attention to how guests experienced the resort, from the point of arrival to the point of departure.

A New Approach to Entertainment Casinos had long used entertainment as a marketing tool, with headline entertainment as a way to entice premium players to visit. Prior to the Mirage, casino showrooms were designed in a similar manner. Booths reserved for VIPs were arranged in a series of horseshoes around the stage, and narrow rectangular tables below each tier perpendicular to the stage were devoted to general admission seating. Guests were obligated to tip their way to a reasonably good seat, and those who didn’t often found the location and sightlines to the stage less than ideal.

The Mirage Lobby Aquarium, located directly behind the front desk. This 20,000gallon saltwater aquarium showcases nearly 1,000 forms of marine life, including angelfish, stingrays, puffer fish, tangs and other exotic sea creatures.

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The Mirage’s 2,000-seat main theater, featuring Siegfried and Roy, took a far more egalitarian approach, in which guests didn’t have to bribe their way to a good seat. The theater was modeled after more traditional Broadway theaters, where all seats offered good views of the stage. Guests could reserve their seats from a map with prices clearly displayed, rather than be beholden to the maître d’. A state-of-the-art ticketing system supported this endeavor. This style of showroom ticketing is common practice today, but not so in 1989.

The Mirage provided an abundance of entertainment as guests walked through the property. Outside, a volcano erupted periodically during the course of the evening. It was a beacon that attracted guests to the property like no sign ever could. Such entryway attractions can now be found at integrated resorts around the world.

Once in the property, arriving hotel guests could gaze at a 53-foot aquarium behind hotel registration, which served as a distraction as they waited for the next receptionist. The aquarium contained more than 1,000 species of fish.

Once checked in, guests walked through an atrium containing a tropical rainforest. It set the stage for the experiences to follow. Maintained by a staff of botanists, the rain forest became an iconic feature of the resort and often a bottleneck as guests stopped to take pictures and examine the fauna.

The expansive pool area beyond the casino featured acres of waterfalls and chaise lounges in keeping with the Polynesian theme. Beyond that was a habitat for Siegfried and Roy’s white tigers. It became an interactive attraction that

proved wildly popular with guests—so much so that Wynn then designed and built a Dolphin Habitat managed and run by aquatic and marine professionals. The centerpiece of this new exhibit was a set of three pools that featured bottlenose dolphins in a nature-like setting. Together, these greatly added to the entertainment found at the Mirage and helped “keep the promise” of excitement and service.

The Sum of the Parts These design principles, operational systems and human-resource strategies became the model for future integrated resorts. Every property that followed owes a portion of its lineage to the Mirage.

Perhaps the property’s greatest testament is its ability to stand the test of time.

More than 30 years after its opening, the Mirage remains a vibrant and exciting property. While its restaurants have been rebranded, rooms renovated and public areas refreshed, the property continues to demonstrate that an investment in good infrastructure and human-resource principles is what makes great properties survive and prosper.

Arte Nathan was vice president of human resources at the Mirage and went on to open all of Wynn’s resorts in North America and Asia. He currently is president of Strategic Development Worldwide (www.sdwnet.com). Andrew Klebanow is a principal at Klebanow Consulting. He has worked in the casino industry since 1977 and as a gaming consultant since 2000. He can be reached at andrew@klebanowconsulting.com.

FEBRUARY 2021 www.ggbmagazine.com

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Windy City Gaming Chicago will finally plant its flag for a casino development

By Brendan Bussmann

C

asinos in urban environments, not always the norm, have offered challenges in certain jurisdictions.

Major markets such as Philadelphia have had casinos near downtown for years. Pittsburgh and Detroit also feature casino gaming in downtown settings. The Washington, D.C. market, with MGM National Harbor, has also made an impact. But in recent years, more developers have embraced urban environments to meld properties into the fabric of the greater communities they serve. Two of the more recent examples were in Massachusetts, with MGM Springfield and Encore Boston Harbor.

Some of the greatest opportunities for gaming expansion in the United States remain in urban settings. For years, New York, Atlanta, Miami, Dallas and Houston have been seen as potential expansion sites. But the most immediate opportunity exists in Chicago, which will locate a gaming development within the city itself.

The opportunity for Chicago, the third largest metropolitan area in the U.S. with nearly 9.5 million people, has been discussed for several years. It finally became a reality in 2019, when a gaming expansion bill passed in an extended session of the Illinois legislature.

The bill at that time allowed for sports betting, an expansion of VGTs, casino gaming at racetracks and six additional land-based casino licenses.

The process for the locations outside Chicago began in 2019. The Windy City itself has yet to launch its official operator selection process, but it will likely be a strong opportunity for an urban casino development in the U.S.

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Financial Feasibility As part of the legislation, a study was performed to evaluate the opportunity. It said the biggest obstacle to a Chicago casino was the tax rate initially included in the bill. Due to the state and city’s desire to each take a portion, an effective tax rate of 72 percent made it financially impossible to generate sufficient profit levels from a casino at any of the five sites evaluated in the report.

Illinois has always been known for its high tax structure. It’s tried to squeeze as much as possible from the golden goose, but gaming operates best in a low-tax environment that encourages investment and job creation. In late May 2020, the Illinois legislature went back to the drawing board to create a more feasible structure for a casino license in the city of Chicago. With the revised legislation, the effective tax rate is approximately 40 percent. While this is still high, it does allow an operator more flexibility to invest in a project and actually achieve a profit.

However, it’s still one of the higher tax rates in the country, and limits the full potential that a Chicago casino could achieve.

Unlike other companies like Amazon that seek tax breaks and incentives for the “privilege” of bringing their businesses to town, gaming operators don’t typically ask for tax abatements and other special incentives to enter a market. While gaming is a mainstream form of entertainment, it’s not afforded the same luxuries as other industries that are courted by major cities. And while there won’t be such incentives

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granted in Chicago, the city itself has taken a thoughtful approach to attracting a quality operator who understands the market and can allow a strong development opportunity.

Launching the Process

Several sites are being considered for a Chicago casino. Among them (top to bottom): the downtown site of the former Michael Reese Hospital, the former Robert Taylor Homes low-income property and Harborside Golf Course, a little further out.

Chicago Mayor Lori Lightfoot has championed this effort better than any of her predecessors.

She’s led a thoughtful process, not only in working with the state legislature to adjust the tax rate, but also understanding the dynamics and strains facing the industry as it recovers from the Great Shutdown. This includes engaging with and listening to experts who understand the regulatory and request-for-proposal (RFP) selection process—something that doesn’t always occur among these groups.

In a release in early December 2020, Lightfoot issued the following statement after a request-for-information (RFI) process launched to seek input from the gaming industry and other interested stakeholders: “The many perspectives and insights captured in this RFI are indicative of the excitement and anticipation of this once-in-a-lifetime project. Thanks to the responses of nearly a dozen RFI respondents, we are not only one step closer to bringing the long-awaited Chicago casino to life, but have the critical information we need to ensure this project will be a success.”

As part of the RFI, 11 stakeholders responded with comments, including international operators such as MGM Resorts International, Wynn Resorts and Hard Rock International, along with regional operator Rush Street Gaming and a host of developers and other interested parties.

Key findings from the RFI include the desire to operate a temporary casino, the potential locations of either a permanent or a temporary facility, and amenities that should be included.

Based on the RFI document, operators had a wide range of responses to what a destination casino resort facility would look like in Chicago, including: • Casino size ranging from 100,000 to 200,000 square feet, with up to 4,000 gaming positions; • Hotels that may range from 100 to 750 rooms; • Six to 20 food and beverage outlets; and, • A multipurpose space that would allow for meetings/convention, concerts or other special events.

Clearly, there’s a wide range of opportunities as operators take this initial look into the market.

Potential Sites One thing the city has been careful about is letting operators decide the best sites that would suit their type of development, rather than forcing operators into one specified site. This also prevents the inflated pricing of real estate FEBRUARY 2021 www.ggbmagazine.com

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Chicago Mayor Lori Lightfoot has accomplished what her predecessors failed to do—engaging and listening to experts about how to implement casino gambling in her city

Thanks to the responses of nearly a dozen RFI respondents, we are not only one step closer to bringing the long-awaited Chicago casino to life, but have the critical information we need to ensure this project will be a success.

“

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be part of this process. This should always be the case, but it hinges largely on selecting the best location within the community. Local groups have long limited growth along the lakeshore, which may prove attractive in combination with some of the sites under consideration.

With other synergies in the market including convention centers, stadiums, and additional hotels, retail and other attractions, some operators may view this as the best location for a casino. However, they will likely run into a buzzsaw of opposition. Some developments, including presidential libraries, have had issues in the past.

While it’s yet to be determined if any of these will make the final cut, it may take a significant amount of community engagement and education for an operator to get a site around this area.

Others have suggested that the site should be in the southern part of the city near the Indiana border, in closest proximity to Horseshoe Hammond and other East Chicago casinos. One of these sites is the old U.S. Steel plant, within a stone’s throw of Lake Michigan. Another is situated on a Harborside golf course.

While both of these sites offer tremendous land opportunities, they’re also far away from the city’s downtown corridor—a positive or negative, depending on the viewpoint. The Harborside site has better access than the U.S. Steel plant site, especially with its proximity to I-94. It’s likely that some operators will view these as broader development opportunities. It’s also possible that these sites would recoup some of the revenue being lost to Indiana due to their proximity to the border. But they wouldn’t offer as much opportunity in terms of gaming revenue, as well as for direct and induced economic impact.

The Path Forward that could occur if a specific site or handful of sites were chosen. This didn’t dissuade a few real estate developers from commenting on several sites that may be considered. While the city will likely have a preference on specific sites, this should be a partnership between potential bidders and the city as they evaluate proposals later this year.

There have been several sites debated for a Chicago destination gaming resort, although many believe the best site would be within the downtown or near the downtown area. Others feel the property should be located outside of the downtown core, because it would offer the opportunity for a larger development. In the current term, five sites are currently in focus, but others may emerge.

Three major sites have been discussed over the years. They include two sites closer to the heart of downtown, such as the former Michael Reese Hospital (31st Street and Cottage Grove Avenue), the former Robert Taylor Homes (Pershing Road and State Street), and a location just west of the main downtown area at Roosevelt Road and Kostner Avenue.

The two more downtown-centric sites are in closer proximity to other local attractions and will be able to complement and enhance the existing framework under the right development. While the western site probably has better direct access, it is by far the least desirable location of the three. The larger economic play for operators and in turn for the city will be to situate the facility closer to the downtown region at these or other potential locations that may seem desirable to operators.

As noted by the respondents, community engagement and support will 30

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As the industry recovers, this process may take some time, which is why the city held off until this year to launch an RFP process to select an operator. All the respondents acknowledged the challenges of the current Covid-19 pandemic, but believe it will have minimal or no impact on the long-term opportunity for Chicago.

Current trends point to the launch of an RFP around the start of Q2 2021, with the focus on April. Assuming that a vaccine allows restrictions to be lifted in markets across the country, this seems like the logical, natural progress, a prudent path for the city to follow as the sun, moon and stars finally align. This would put the selection of an operator for a Chicago license from late 2021 to early 2022. Assuming a roughly three-year timeline to build the facility, depending on the type of development, one could see a Chicago casino by 2025.

There are few opportunities left in the United States for significant growth in land-based gaming. Chicago, with its population and the opportunity for a downtown locale, would bode well for strong development that embraces the surrounding community.

History shows that gaming continues to be an economic engine for those that have forged ahead, and offers a model for success. Chicago will be in the right position as the industry emerges from the Great Shutdown. This would give Chicago the first major U.S. facility to be developed post-pandemic, just as the world returns to normal, and finally bring gaming to the Windy City.

Brendan D. Bussmann is a partner and director of government affairs with Global Market Advisors (GMA).

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OPERATIONS

More Effective Player Comping The case for returning to comping based on actual vs. theoretical loss

B

ack in the day, before we had computer-driven player-tracking systems and wide-scale rewards programs, players who lost large amounts of money were given comps (even rebates) to offset the sting of their losses. Players who won big were comped into the hotel or restaurant to keep them around in hopes they would play again and lose back some (or all) of their winnings.

Casino managers knew that if players played long enough, the house advantage would eventually overcome short-term losses. These executives made “seat of the pants” comping decisions based on their experience and intuitive knowledge, not theoretical-win calculations generated for them by a computer.

With the advent of automated slot player tracking systems, casinos developed reward programs for the masses. For the most part, these were based on coin-in and theoretical expectations, not actual player losses. There was no hosting per se; the rewards were issued at casino “slot club” booths. This initiative was separate and apart from the cultivation of high-end players.

These two marketing programs—individual player hosting and mass player reward programs—had the same goal, to build player loyalty and garner future visits. Their means to that end were vastly different, but over time, casinos began combining those strategies, using theoretical win to evaluate and reward both grind and high-end players.

Theoretical win may be the most accurate reflection of long-term yield, but using it for trip-bytrip comping decisions can be counterproductive to the desired goal of retaining top players. When gamblers lose big, the last thing they want to hear from their casino host is that their theoretical loss doesn’t justify any special treatment. What a deflater! Players feel entitled to some VIP treatment when they lose big. It’s part of the psychodrama that makes high-risk gambling so appealing. The recognition they get is, in large part, what makes the risk of a big loss worthwhile.

Conversely, when players win big now, the

By Mike Crenshaw

offer of a steak dinner or a free hotel room to keep them around has little appeal. They can get that anytime with their accrued comp points.

Today, instead of the player hearing, “You just lost X, so this is what I’m going to do for you,” the conversation goes more like, “Your actual loss is X, but our computer says your theo is Y, so what I can do for you is Z.” Personal relationships have been replaced with calculations and negotiations. As a result, players are more inclined to choose their casinos based on where they get the most back, instead of where they feel most recognized and appreciated.

Casinos operators may say this is the fairest way of determining player comps, but what they really mean is that it’s the easiest. Effective comping is both science and art. It takes careful consideration. It requires a decision, one that’s based on the evaluation of what will affect the player in the most positive way and increase the likelihood of his loyal patronage while maintaining the casino’s profitability objectives.

Unfortunately, many casino executives today don’t want to make decisions, because they involve risk—the risk of making the wrong decision and being criticized, reprimanded or even fired. When they’re not required to make decisions, executives don’t learn a vital skill that makes them supremely valuable to the enterprise.

Players today have become acclimated to our use of theoretical, so we can’t entirely go back to how comping used to be done. But we can modify it to be more effective in building long-term relationships with preferred players.

For the most part, players understand they “can’t have their cake and eat it too”—they can’t get their perks based on actual and theoretical.

Casinos can (and should) make long-term cultivation calculations based on theoretical, but deploy them in a more personal way, based on their actual trip-by-trip results.

There’s nothing wrong with making the player part of this discussion. There might be some who prefer to keep their comps on a theoretical basis, even though they might complain

about it later when they have a big loss. But that’s what casino executives are paid to handle. Gambling isn’t a logical activity, like buying items in a grocery store. Gamblers are generally compulsive and not inclined to engage in logical discussions.

That’s the nature of our business. It’s where casino executives apply their people skills and earn their lofty salaries.

It’s up to the casino, based on theoretical calculations (and they’d better get those right), to determine what they can afford to do for their high-end players, then break that down into how they will apply it based on actual wins and losses on a pertrip basis.

But never mention “computer” or “theoretical” in the heat of the battle, so to speak, when a player is looking for the special attention that makes him feel valued for whatever he’s done on the day. Make that moment purely personal and from the heart, and you’ll have a much better chance of keeping a loyal patron of your casino.

Also worth considering is cutting some of your bulk high-end marketing initiatives—i.e., parties, mass giveaways, etc.—to provide more funds for cultivating your best players on an individual basis.

In reality, these types of events seldom boost loyalty anyway. You’re pretty much just competing with the other casinos on a dollar-for-dollar basis for what is most likely only one additional visit.

There’s little loyalty generated in this way, and in many cases, the treatment players get on those occasions, where you’re dealing with large numbers of people at the same time, only serves to make them feel even less important.

Mike Crenshaw was in casino management for 35 years. Prior to retirement, he was vice president of casino operations at Pala Casino, Spa and Resort in San Diego County, California. Before that, he was director of gaming for the Fitzgeralds properties in Reno, Nevada. Crenshaw also served as an adjunct professor at the University of Nevada’s Continuing Education Department, where he conducted courses on casino operations management. His involvement today is limited to consulting.

FEBRUARY 2021 www.ggbmagazine.com

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Compliance & Covid-19 In unprecedented times, regulatory concerns abound

By Grant Eve

T

Cashless payment technologies for gaming have been available for years, but the urgency to implement them and transform player acceptance is evolving at lightning speed.

here’s no doubt that Covid-19 has caused a major shakeup of the gaming world, changing the way business will be conducted for years to come. During this crisis, operators must focus on safety while maintaining gaming operations as jobs, livelihoods and the health of loved ones and strangers are on the line.

In an unintended consequence of this refocusing, some gaming operations are overlooking the regulatory aspect of their operations. In gaming, as in any thriving or emerging industry or technology, regulations play catch-up to operations.

Regulators and compliance teams have an incredibly important mission that cannot be put on hold despite new and challenging circumstances, such as the current pandemic.

For example, due to Covid-19, we’re seeing the move to digital at a rapid pace, with an urgency that was unknown in the past. For a long time, it’s been widely recognized that cash is an outdated form of payment with the exception of very few businesses, including the casino industry. Cashless payment technologies for gaming have been available for years, but the urgency to implement them and transform player acceptance is evolving at lightning speed.

With this new technology, regulators and compliance teams need to understand the transaction process, which now will rely even more on other service organizations for proper internal controls. Regulators should understand any transaction or process that they oversee, from start to finish.

To verify specific best practices, they should always review a systems and organization controls report (SOC) from any third-party business solutions provider. These reports, compiled and verified by third-party auditors, provide independent assurance of best practices.

Depending on the level of SOC report, the document will incorporate multiple control frameworks and industry standards.

Cybersecurity Concerns As third-party providers increase and work shifts to a more remote environment, cybersecurity is at the forefront of everyone’s mind. In 2020, data breaches on a national level were numerous. Especially noteworthy was the Solar Winds hack in December. Some experts say 32

Global Gaming Business FEBRUARY 2021

it may be the largest-ever hacking campaign, with several federal agencies and Fortune 500 companies breached.

Casinos weren’t immune from cyberattack either. Several major breaches occurred in 2020, and some infiltrations caused casinos to be shut down. The revenue impact can be severe; IBM reports that the average cost of a data breach is $3.9 million.

In addition to SOC audits, casinos should consider implementing a managed detection and response (MDR) solution. Using machine learning and artificial intelligence, MDR looks for indicators of compromise, like someone attempting to log into a user account or gain access to a database.

Regulators should ensure that multi-factor authentication is built into their programs, provide consistent and updated training, and work with a virtual chief security officer when it doesn’t make sense to hire one internally.

Key Takeaways for Regulatory Compliance in 2021 • More casinos will move to cashless technology solutions and will need to be well-prepared for proper implementation and regulation.

• Ongoing compliance training and creating a culture of compliance will be critically important for gaming operations.

• Cybercrime is on the rise since the onset of Covid-19.

The gaming industry should remain vigilant in strengthening cybersecurity and consider implementing an MDR program, especially in today’s remote work environment.

• Proposed changes to AML regulations could come into play this year.

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A

PUBLICATION

AN ANNUAL INDUSTRY REPORT

Don’t miss your opportunity to reach tribal gaming executives from all corners of the industry!

GGB Magazine is proud to announce the 2021 edition of TRIBAL GOVERNMENT GAMING: An Annual Industry Report, the most comprehensive publication available covering all Class II & Class III tribal gaming operations.

More than just a directory or resource guide, Tribal Government Gaming features editorial coverage of cutting-edge issues such as tribal sovereignty, Indian gaming regulation, economic diversification, nationbuilding, compacts and more.

Tribal Government Gaming is a highly visible publication with a circulation of 20,000, including bonus distribution at NIGA in April 2021, OIGA in July 2021, G2E in October 2021 and other appropriate trade shows and conferences.

Tribal Government Gaming reaches key decisionmakers in the Indian gaming and traditional casino industries, including operators, regulators, manufacturers and vendors.

As an annual publication, Tribal Government Gaming will offer a one-year shelf life providing increased frequency and recall for advertisers. Sponsorship opportunities are available for increased marketing awareness.

Ad Space Deadline: APRIL 22, 2021 I Publication Date: MAY, 2021 For more information on advertising, please contact

Terri Brady, Director of Sales & Marketing

phone: 702-248-1565 x227 I email: Tbrady@ggbmagazine.com

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As the past has showed us, no single cyber-solution is 100 percent foolproof. But ensuring the risk is mitigated is one strong pillar of a successful compliance program.

Title 31/AML Compliance Evolution

If you live in a state where the government has imposed lockdowns, tribal casinos may still be operating, since tribes are sovereign nations and can exercise their own judgment on closure and hours. With other entertainment options closed, tribal casinos have seen a completely new customer base enjoying their facilities.

At the 12th annual Anti-Money Laundering Conference in Las Vegas in 2020, Kenneth Blanco, director of the Financial Crimes Enforcement Network (FinCEN), discussed how new technologies will impact financial crime detection—particularly in sports betting and mobile gaming.

This year, more casinos and states will move to adopt sports betting and mobile gaming. Compliance programs must ensure the proper integration of any new services or offerings. Fortunately, regulators have a world of experience to draw upon, gleaning intelligence from jurisdictions around the globe where sports betting has been legal for decades.

Ensuring that casinos use “all available information” is as relevant as ever as new technologies evolve. This regulation is published in the Code of Federal Register §1021.210(b)(2)(v): “Procedures for using all available information to determine: (A) When required by this chapter, the name, address, social security number, and other information, and verification of the same, of a person; (B) The occurrence of any transactions or patterns of transactions required to be reported.”

Obviously, this is a very broad regulation, but it’s been mentioned in every speech and enforcement action by FinCEN in the last several years.

Consider building these items into your sports betting or mobile gaming applications for detection: patterns of transactions, structuring, knowyour-customer (KYC) and cyber-related incidents. Each one can be considered “all available information,” and each has been singled out by FinCEN.

Let’s Talk Cash As the gaming floor transforms, casinos cannot take their eye off the ball related to cash transactions, which are still the heart of Title 31/AML compliance. Title 31/AML remains a vital component of any casino’s regulatory structure, and the tone starts at the top.

In the 13 enforcement actions against casinos and card clubs since 2000, eight cited the lack of a culture of compliance. In any uncertain environment, management may look at cost reduction in all areas, including compliance. But any reduction in compliance should be heavily evaluated 34

Global Gaming Business FEBRUARY 2021

before action is taken.

If you live in a state where the government has imposed lockdowns, tribal casinos may still be operating, since tribes are sovereign nations and can exercise their own judgment on closure and hours.

With other entertainment options closed, tribal casinos have seen a completely new customer base enjoying their facilities.

While this is positive for the tribal casino industry, compliance now has additional work to do to ensure the casinos maintain proper KYC obligations according to their existing AML programs.

Possible Changes In AML Regulations Last fall, FinCEN issued an advanced notice of proposed rulemaking (ANPRM) on “Anti-Money Laundering Program Effectiveness.” The document requested public comment on potential regulatory amendments.

As if 2020 hasn’t thrown enough at us, operators and regulators should be prepared for another possible curveball in 2021. Hopefully, any amendments would help clarify confusion from past broad AML regulations.

Some of the highlights from the ANPRM would clarify how a program should assess and manage risk as related to risk assessment.

The amendments also consider modernizing the regulatory rules to address evolving threats of illicit finance, while providing greater flexibility in the allocation of resources. This would be a welcome change, as a casino’s AML compliance program should be commensurate with the risk at the facility.

As former U.S. Deputy Attorney Paul McNully famously stated, “If you think compliance is expensive, try noncompliance.”

If you haven’t started planning around or taking action on these regulatory concerns, it’s time to get started.

Grant Eve is a partner at Wipfli LLP, specializing in the commercial and tribal gaming industry. A certified public accountant and certified fraud examiner, he focuses on providing compliance, casino and gaming fraud examinations and internal audit services. Follow Eve on LinkedIn at linkedin.com/in/grant-eve-3aa4762a/ or learn more at wipfli.com.

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MAKING MY POINT

Annual Assignments Being stuck in the house isn’t the worst thing, if you can improve your lot in life

B

y late January or early February, it’s likelier than not that whatever New Year’s resolutions you made have gone: A) Down in flames B) Up in smoke C) Gone with the wind D) All of the above Well, like Tonya Harding in the ’94 Winter Olympics—she of the busted ice skate and the botched knee-capping—you’re getting a second chance. A do-over. A Mulligan. Shake off those broken vows and take another crack at self-betterment.

No, this is not about hitting the gym (most are closed anyway), or not hitting the buffet (ibid). Rather, these five resolutions will give your career a clear kick in the rear.

Casting for Knowledge Listen to at least one business podcast a week.

There are a lot of good ones out there, be their perspectives macro (NPR’s “Planet Money”), micro (“Entrepreneur on Fire”), or even superduper specific to the casino industry, such as “GGB Podcast,” “Max Bet,” “The Bruford Files,” and “B in the Know.”

You know that old saw about always keeping your sword sharp for battle? Well, podcasts— whether they’re fun, serious or a blend of the two—are a whetstone in your pocket. You’re bound to learn something, and you’ll keep abreast of what’s new and newsworthy in your world.

By Roger Snow

3) How Roger Sterling explains the importance of interpersonal relationships, saying, “Half the time, business comes down to ‘I don’t like that guy.’”

Simon Says Check out a Simon Sinek video on YouTube.

Sure, he looks like someone who, back in high school, was probably picked last for sports and first for atomic wedgies. But when it comes to the emotional side of business, dude can ball.

His Ted Talk on the “Golden Circle”—Why? How? What?—should be required viewing in every classroom as well as every boardroom.

There’s a double benefit here. Not only will you pick up pearls of wisdom on leadership and trust and whatnot, but study the way this man presents ideas to a group of people. The way he uses storytelling to make his point. The way he involves the audience with questions. The way he moves about with energy and enthusiasm.

Because it’s not just about what he says, it’s how he says it to maximize its effect.

Paging Dr. Freud Or Dr. Phil or Dr. Oz. But definitely not Drs. Who, Dre, Kevorkian, Howard or Fine. Dig into your own psyche and see if you can shore up any deficiencies that are hampering your potential. We all have them, so if you haven’t found yours yet, you’re not looking hard enough.

Maybe you’re a procrastinator. Maybe you’re afraid to express your opinions. Maybe you fly off the handle for little to no reason.

Maybe you’re too pessimistic. Maybe you’re too optimistic. Maybe you start sentences the same way over and over.

Could be anything.

There is always room for two things in life: Jell-O and improvement. In regards to the latter, infinite options exist, from books to books

into your own psyche and see if you “Dig can shore up any deficiencies that are hampering your potential. We all have them, so if you haven’t found yours yet, you’re not looking hard enough.

”

Go Mad Binge-watch all 92 episodes of Mad Men, but fast-forward through the adultery, the lying, the adultery, the backstabbing and the adultery. Focus instead on the business scenes and the lessons therein.

Examples abound, but start with these: 1) How the company spots and nurtures the creative talents of secretary Peggy Olson.

2) How Don Draper spars with a lipstick executive over a fresh approach, showing he has unwavering conviction in himself and, in turn, turning skeptic into believer.

when it was written. Power, on the other hand, goes over the top with its military references and its outsized sense of self-importance. But bore through those minor defects and add their lessons to your arsenal.

Book ‘Em Read the books—or at least synopses of—The 48 Laws of Power and How to Win Friends and Influence People. True, Dewey Decimal never would catalog these in the business aisle; however, these are easy reads, full of tactical tips on persuasion, human nature and good old-fashioned common sense.

Sure, the language in Friends is a little cornball. Golly gee willikers, it was probably cornball

on tape to online videos out the wazoo. Even professional therapy, hypno or otherwise.

Invest in yourself and the dividends compound... and they last a lifetime.

Roger Snow is a senior vice president with Scientific Games. The views and opinions expressed in this article are those of the author and do not necessarily reflect the views and opinions of Scientific Games Corporation or its affiliates.

FEBRUARY 2021 www.ggbmagazine.com

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Safe and Sound Innovative products promise to take the casino industry safely into the post-Covid era

By Dave Bontempo

H

ere’s a new twist on safety in numbers.

For the casino world, it means that without safety, there are no numbers. The gaming industry, aided by sharp vendors, enters a safety age exceeding hand-sanitizing stations, Plexiglas shields and socialdistance markers.

At relatively breakneck speed, vendors have unearthed products integrating safety and finance. The advancements look so creative they may also help the country leave the Covid-19 era. Other innovations are psychological, as in the engagement between companies and patrons via social casinos and their marketing vehicles.

Once the Covid-19 era recedes—and it will—analysts may recall this time as the industry embracing unprecedented ingenuity.

Bet on Safety HBG Design is well-known for building great structures, but when the pandemic hit, the company geared efforts toward protecting them.

Enter SafeBet, a solution geared to the epicenter of the casino economic engine, the slot floor. From a health standpoint, it’s almost a luxury super box.

A Plexiglas component, which can help prevent someone from being sneezed upon, is joined by an air-filtration system that catches small droplets.

There are also partitions between stations. A player can be in the middle of the action while retaining personal space.

Rick Gardner, AIA, CEO, principal and practice leader for HBG, says the company began designing this solution last April, as the pandemic was closing casinos and halting projects. Its solution targets both the current and perceived post-pandemic environments.

“We immediately started thinking about making casino gaming safe in the face of Covid-19, but a few months into the spring we quickly realized this is a different kind of pandemic, with a lasting impact unlike anything the world 36

Global Gaming Business FEBRUARY 2021

has experienced before,” Gardner asserts.

“I’m an optimist at heart, but there will be something else post-Covid affecting public health even after we get vaccines in arms and achieve herd immunity. Even if we’re just talking about the human psyche, we are forever changed. Will anyone want to sit shoulder-to-shoulder at a slot bank ever again? We don’t think so. Human behavior pre-Covid already favored physical separation between individuals.”

Why not embrace it? The safety measures enable people to play, but the concept can also be used for exclusivity, especially for high-limit games. Any operator able to manage this may turn survival into revival.

Here’s how it works: Air from the indoor casino environment enters SafeBet through the intake grill, designed low to draw less smoke-laden air than air found in the upper reaches of a typical casino floor. As the indoor casino air enters the SafeBet intake grill, it is propelled by a recirculating fan through a patentpending, ultraviolet-C lamp fixture custom-designed for SafeBet. The indoor air is cleaned via two proven filtration systems. They are UVC radiation, designed to kill any viruses, bacteria or mold spores by exposure to ultraviolet light; and needle point bipolar ionization, which attracts air particulates like a magnet, stopping them in their tracks before proceeding to the supply air in the breathing zone.

The distribution of ionized air is introduced evenly into the breathing zone at a low velocity into the SafeBet station at the approximate height of an average person’s head/nose/mouth, providing a clean, particulate-free air supply to the guest.

“I think one of the key differentiators of SafeBet as a Covid product is that it’s not what you typically think of first,” Gardner says. “When I think of Covid products, my mind goes to jumbo-size hand sanitizer pumps, face masks, washing hands, etc., more in the PPE realm. I also think about the

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From a health standpoint, it’s almost a luxury super box.

Plexiglas partitions that were initially installed as temporary fixes.

“So, when I think of SafeBet as a Covid product, it represents more of a design enhancement that solves customer safety challenges, but you honestly can’t even tell it’s a Covid product. That’s part of the beauty and ingenuity of it.”

Gardner says HBG wanted to create a long-term solution to innovate, adapt, research, design and build a product that not only addressed the critical needs of its customers now, but anticipated the future.

Gardner says SafeBet will be a difference-maker between casinos. HBG is collaborating with its manufacturing and distribution partner, KGM Gaming of Philadelphia, to take the product to the market, initially through existing casino clients who represent first adopters. A prototype is available to explore and experience in KGM’s Philadelphia showroom.

HBG expects to have initial installations in place in the first quarter of 2021.

“Casino customers have a choice in where they want to go and play, and by and large they gravitate to slot machines,” he says. “When a customer experiences the choice of gaming in a SafeBet station, we believe their time on machine will actually increase, and the stations themselves will generate more play.”

In the Clear Aristocrat Technologies has also been at the forefront of addressing Covid-19.

When the coronavirus shut down the gaming industry, Aristocrat ramped up its efforts to help gaming customers. The global initiative called “In the Clear” is a comprehensive set of solutions for operators of all sizes. One part of In the Clear is Reel Clear, a system-driven solution that automates social distancing, eliminates player confusion, gives players greater control and saves operators time and expense.

This solution uses a combination of customer awareness messaging, automatic “social distancing” slot machine modes and integration to mobile channels to create a safer casino environment.

Customers can trust the machine they are playing has been cleaned and prepared by viewing the In the Clear stopwatch on the nCompass display, which indicates when the last sanitation was performed. If the stopwatch is not to their liking, customers can request cleaning on demand before starting the game session.

Customers can visit their favorite casino by checking the casino’s website or social sites to see how many machines are available for play versus total occupancy. Reel Clear enables clients to keep their floors safer.

When a player begins a gaming session, the slots on either side of the chosen machine are automatically placed out of play. And when the session ends, the adjacent machines automatically become available when the chosen slot is placed in Cleaning Quarantine Mode.

Company reports assert that Reel Clear benefits the operator in several ways. First, the system automates social distancing management, taking any awkward burden off floor staff.

The automation also allows operators to make the entire gaming floor available to players as the system takes care of temporary shutdowns.

When a game is placed into Cleaning Quarantine Mode, the system delivers notifications to floor staff, enabling them to focus attention where needed, and a simple swipe of the attendant’s card makes the game available for play. Reel Clear uses Oasis 360 and nCompass, so no additional hardware or expensive Plexiglas is needed.

With Reel Clear, the choice is the player’s to make. Reel Clear gives players a greater choice of games, and its easy-to-read messaging displayed on the nCompass unit gives greater confidence in the casino’s cleanliness and safety. A display shows when the game was last cleaned and allows the player to request cleaning again before play.

Integration with Aristocrat’s Oasis One Link module further raises awareness of increased safety protocols using all existing signage.

FEBRUARY 2021 www.ggbmagazine.com

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The Sigouros Signature It’s was a big 2020 for Yatra Med Supply. The company marketed the breakthrough Sigouros—a disinfectant door presented to it by America First Products.

The solution is similar to that of an airport security system. But instead of trying to prevent passengers from bringing unsafe materials onto a plane, this machine is set to eliminate germs.

This is an entrance defense system. The door prevents symptomatic individuals and RNA/fomites from entry into an operator’s building.

It is currently at the Grand Canal Shoppes at the Venetian Resort Las Vegas, at Kamu Nightclub. This has also been utilized at the SeatGeek Stadium just outside of Chicago at concerts.

The company launched an upgraded Sigouros 2.0 version in October.

This door measures slightly larger. It has a ramp for wheelchair accessibility, and has footpad lighting for disinfecting the bottom of your shoes.

“We have been in the retail business since 2005, but once the Covid-19 pandemic hit we really wanted to help out, and partnering with America First Products as a value-added reseller of this product was a great way to do so,” company founder Yogi Sharda says.

“Sigouros was featured on Fox and Friends nationwide back in September. Since then, we have seen some further interest from manufacturing companies, casinos, meat packing facilities, airports, shopping malls and nursing homes. We are not a cure for Covid-19, but we have set a goal to minimize the spread of this awful pandemic.”

With the system in place, an individual will first encounter Sitis (a rectangular thermometer that sits outside the doorway). This can be sold with Sigouros or as a stand-alone unit. Sitis will detect a 99 percent accurate thermal body temperature, and alert if there is a fever present. There is an optional feature for facial recognition that some employers find to be a great device to oversee employee check-ins.

Once individuals pass this stage, they will walk through the door and encounter the overhead UVC ozone at three parts per million, the far UVC light, and the atomized disinfecting vents. In less than 10 seconds the individual will be sanitized and safe to enter.

This state-of-the-art sanitization doorway uses a three-stage system that takes 10 seconds per individual to walk through and have their body completely sanitized. It uses ozone, far UVC light, and an EPA-approved atomized disinfectant to kill over 99 percent of surface bacteria.

The price tag may not be in the range for small business owners, but the company offers the option to lease the machine. This would be a more affordable option for a restaurant or small business owner who was having an upcoming event and wanted to take that extra step in protection and safety.

Many of the innovations born from necessity during the Covid-19 crisis will be with the industry for years to come, helping players feel comfortable and safe long after the crisis has passed.

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Keeping Clients Connected ome vendors offer properties the tools to remain safety savvy. Others provide the route to dollars, via the social-emotional lifeline.

That became a prominent roll for GAN Limited over the past year.

The company has been on a longtime roll, with 18 years of experience as a B2B provider to the iGaming sector. The company has 15 simulated gaming partners worldwide, primarily in the United States. Its American partners generate over $9 billion in annual GGR and house over 125,000 slot machines across its floors.

GAN has a simulated, real-money and sportsbook component. With its differentiated platform, the company rolled in a new direction over the past year. It provided a lifeline to the gaming industry during the pandemic.

GAN’s products helped casinos maintain customer contact. It can’t be measured how many customers and dollars would be lost by the need to re-recruit brick-and-mortar players after the pandemic. Online casinos keep the economic ball rolling, even if that means slow speed.

GAN’s partners now see the online casino (social or real-money) change from a separate entity into a key function within their marketing strategy.

Company Chief Marketing Officer Meir Deutsch reviewed his company’s pandemic scorecard with the crisis approaching one year.

Here’s what he concluded: GAN operated over 15 casinos (social and real-money) from California to Rhode Island during the casino shutdown (March-June). On March 11, when casinos started shutting down, GAN quickly sprang into action working with each individual property’s marketing teams to prepare players for the online play during the lockdown.

The company quickly implemented best practices during the initial shutdown in the spring, and immediately helped deploy a strong online marketing strategy to continue player engagement and revenue while the casino is closed with the on-property team.

The 12-14-week shutdown attracted educated on-property players to the online casino world, as this was the only thing enabling them to them to stay in touch with their favorite casino brand.

GAN quickly saw new registrations jump, daily active users increase from new, existing and lapsed players, and well as overall revenue. The company saw continued secular shift, combined with tailwinds from Covid, that resulted in strong performance of RMiG and Simulated Gaming offsetting declines in sports betting.

When the casinos started reopening, it naturally saw a pullback from players returning to the on-property casino, but a new baseline of online players/revenue was born from players new to the online casino environment. On-property players who found another means to interact with their casino brand.

GAN is working with all partners to understand their current player strategies and quickly implement them online. The company has helped properties offer additional loyalty points to players who made purchases using GAN’s patented technology.

Weekly leaderboards and virtual coins help VIP on-property players continue to experience/engage with the brand. Dedicated emails and social media posts to the on-property database educate their players of the online casino as well as the products and features they could enjoy.

S

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IT’S NOT ONLY POSSIBLE, IT’S HERE.

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For product inquiries or to schedule an exclusive product preview contact Jason Cohen Executive Vice President, KGM Gaming jcohen@kgmgaming.com PATENT-PENDING SAFEBETTM DESIGN BY HBG DESIGN MANUFACTURED AND DISTRIBUTED BY KGM GAMING

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EMERGING LEADERS Building Something Familiar Jeffrey Caldwell

For the Love of Sports

Executive Director of Hotel Operations, Encore Boston Harbor n June 2019, a historic event occurred in Boston, Massachusetts when the 671-room Encore Boston Harbor opened, making it the only casino resort in Boston. Not only was it a landmark moment for the city, but also one for Jeffrey Caldwell. As the executive director of hotel operations, the resort’s opening marked a career milestone for Caldwell, who takes great pride in helping bring the Wynn culture and experience from Las Vegas to the Northeast.

Originally, Caldwell studied finance while at Virginia Tech, but one summer he helped his father at a recreation club in Richmond, Virginia, where he discovered his love for hospitality. When Caldwell returned to campus, he switched to a hospitality major and started a new job at The Inn at Virginia Tech cleaning and refreshing conference rooms. After graduating, Caldwell recognized he had to move to something bigger to achieve his career goals. Caldwell ultimately decided the bright lights of Las Vegas were the best fit, and in hindsight, this move would be the decision that had the largest impact on his career.

Caldwell eventually landed at Hilton Grand Vacations, which served as a stepping stone to his preferred and current employer, Wynn Resorts. In Las Vegas, Caldwell learned how to run a consistent and high-quality operation with high levels of service. He notes that “keeping to your values leads to high-level hospitality professionals,” and with those values comes a successful hospitality operation. Furthermore, he learned how to identify and properly train the people who will thrive in a casino environment, a skill that would come in handy on his next endeavor.

Though his time in Las Vegas was fulfilling, Caldwell had an itch to move back East, and the transition to Encore Boston Harbor was a nobrainer. It ultimately led to his current position.

Little did he know that his move to Boston would lead to him to discover that his passion lies in building something from the ground up. In fact,

Allen Ambrogio

I

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Global Gaming Business FEBRUARY 2021

Director of Operations, U.S. Business, Tipico areer paths often take professionals on unexpected turns, leading them to industries and roles they never envisioned at the start of their careers. Many times, these unexpected paths lead professionals to environments where they can thrive. This was the case for Allen Ambrogio. While Ambrogio did not have his sights on gaming at the start of his career, a fortuitous series of events led him to the industry, and he is here to stay. “It’s a natural fit,” explains Ambrogio, the director of operations for Tipico’s U.S. business. “I’ve been in sports since I was 2 years old and I’ve loved gambling for a long time.”

Armed with a degree in criminal justice, Ambrogio spent his career in payments and fraud before moving to the gaming industry.

“I love finding the bad guy,” notes Ambrogio. “Saving businesses money and growing their bottom lines is fulfilling.” Ambrogio was steadily moving up the proverbial ladder in payments and fraud, with stints at a luxury fashion company among other consumer-facing businesses, but always felt like there was something missing.

Reflecting on his early years, Ambrogio says, “I worked for great companies with great products but I could never fully sink my teeth into the businesses or industries.”

Ambrogio never considered combining his love of sports and gambling with his career until he was out with friends, watching a game and talking betting, when one of his friends suggested he apply to William Hill.

“I looked at their career page the next day and there was an opening for a payments and fraud manager,” explains Ambrogio. He leveraged his expertise and experience to get the job at William Hill and quickly began to soak up as

C

he looks forward to the possibility of doing this again if “Wynn opens new regional properties elsewhere.”

He takes pride in having input in every aspect of the rooms in the new resort, down to the look and feel of the pencils on the desk. Not only did he have input in the room design, but he also had a hand in hiring about 5,000 people “in a market that in many cases had never had some of our positions exist before,” Caldwell observes.

Taking the Las Vegas integrated resort model and adapting it to create “Boston’s Hometown Casino” was not always a smooth road. At first, Encore operated similarly to its Las Vegas sister properties. This included paid parking and lines at hotel check-in and the buffet. Identifying and quickly altering operations to fit the regional model better, including quicker turnaround times for hotel rooms among other changes, is what Caldwell attributes to the early successes of the property.

Guests stay for multiple nights in Las Vegas, giving them more time to experience what Wynn and Encore have to offer. However, in Boston, guests may come for a few hours or overnight.

Giving guests the consistent experience that they expect from Wynn Resorts, no matter which property they are at, is what Caldwell strives to provide. With his leadership, personal values, and passion for building something from the foundation up, Jeffrey Caldwell has helped lead Encore Boston Harbor to a successful opening over the past 18 months.

—Alex Goldstein is an analyst with The Innovation Group.

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much knowledge as he could within an industry he loved from the outside for years.

Ambrogio does not claim he got to where he is in the industry on his own.

“Within the industry, there’s a long list of people who helped me get where I am today,” notes Ambrogio. When questioned for any specific mentors, Ambrogio highlights three in particular. “Matthew Gerard, Jerry Rau, and Frank Catania all helped to mold me into who I am in this industry,” explains Ambrogio. “Matthew opened my eyes into the sports gaming world and helped me understand the business. Jerry had the expertise and focus on gaming and fraud, and was a consistent support line for me.

Frank is a longtime friend and has helped me to navigate a highly regulated gaming market.”

After 18 months with William Hill and developing his own sports gaming expertise, Ambrogio was ready to take on his next challenge within the industry and moved to Tipico to help launch the company’s U.S. operations.

“The challenges are great and keep the job interesting,” he says. “Keeping up on sports betting legislation, how to move into new jurisdictions effectively while competing against others, and how quickly the industry is moving are all challenges, but they’re good challenges.”

Commenting on the changes to his day-today professional life since Covid-19, Ambrogio thinks there have been some silver linings with the shutdowns and ongoing remote working environment.

“It gives you more time to focus on strategic decisions,” he explains. He’s not ready to move to a permanent remote work environment, however. Ambrogio says, “I’m big on human, faceto-face interactions, and I like to be in the office for those quick two-minute chats.”

When asked for any advice he would offer to young people in gaming, Ambrogio gives a simple but often overlooked recommendation: “Always take the phone call or meeting and never turn down an opportunity to meet someone new or have a conversation. You never know where it will lead.”

—Michael Vanaskie is vice president, international development for The Innovation Group.

Getting the Message Molly Hart Licensing and Compliance Manager, Gaming Capital Group olly Hart oversees licensing and compliance for Gaming Capital Group LLC, an Oklahoma company that provides financing for the gaming industry. Given her function, you’d think Hart graduated the University of Oklahoma with a degree in business.

But letters?

Hart received a bachelor of arts in letters in 2010. She studied Roman and Greek history, literature and philosophy, writing and fine arts.

“The letters program taught me to take complicated information and regurgitate it into something easier to understand,” says Hart, who had two sons by the time she entered Oklahoma and a daughter before graduating.

Her husband and high school sweetheart, Skip, introduced Hart to Gaming Capital.

“When I learned of an opportunity to be an employee, I jumped on the chance. I knew how special the company was.”

Gaming Capital hired Hart as an executive assistant.

“I would have taken anything. I just wanted to get my foot in the door to see where it would take me,” she says.

Gaming Capital named Hart licensing and compliance manager in 2018. “It is my responsibility to ensure all necessary gaming licenses are obtained and maintained.”

It’s a team effort, Hart says, one which involves not only her immediate team, but other employees, and various gaming commissions.

With other employees, Hart has helped fos-

M

ter a culture that includes celebrating the seasons, holidays, luncheons, even Festivus for the Rest of us in December. “Whatever it takes to promote culture,” she says.

Another duty Hart relishes is the weekly Molly Message, short, fun editorial pieces she created. Here is a portion of a Molly Message from last month: “I am a long-winded person, but this week I find myself with few words…

Seeing and hearing everyone on Saturday enhanced my holiday more than I thought it would, and it was a wonderful reminder that my world is rich with GCG fellowship. We are a rad little bunch.”

Hart dealt with a single obstacle at the beginning of her career. “It was not knowing anything about gaming. I wasn’t a player. But I just dove into the deep end, and found my way one step at a time,” she says.

A trio of women helped Hart achieve her goals. Peggy Chambers, her academic adviser at Oklahoma, showed her that anything was possible. As vice president of corporate compliance and general counsel at Gaming Capital, Lorrie Ann Hellcat Bamford—real name, Hart says—has served as her boss for over five years.

“She helped me grow into a better professional and person, to stand up for what is right.”

Melissa Cox, vice president of marketing and customer relations, was Hart’s boss when she started at Gaming Capital. “I ended up finding who I could be by helping our employees and customers see how special they are, and Melissa was my example. She is one of the most positive people I know.”

The future still remains to be written, says Hart, who prefers to relax with Skip and the kids during down time.

“This industry has shown me that you never know what lies around the corner because it moves so fast,” says Hart, who also likes a good book and binge-worthy television.

“If you had asked me five years ago, I never would have guessed where I am today.”

The speed of the gaming industry may not suit everyone looking for a career. “You either love it or hate it. So I say, ‘Buckle up.’ You will find your current in this river, and when you do, you will find the company and energy to be infectious. I have met so many people from so many walks of life, and I feel all the richer because of my career in gaming. We are an awesome bunch.”

—Bill Sokolic

FEBRUARY 2021 www.ggbmagazine.com

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NEW GAME REVIEW

by Frank Legato

Da Long Da Fa AGS

T

his new game takes full advantage of AGS’ new Orion Rise cabinet, its 55-inch flat-screen 4K monitor providing real estate for the dual bonus wheel and two jackpot meters that are part of the supplier’s Blazing Wheels family of games.

The Asian-themed base game is a five-reel, 30-line video slot.

The primary game features multiplying 2X and 3X wild symbols that increase pays in winning combinations. The symbols multiply when both appear in a win—a 2X and 3X wild in a win multiply the pay by six.

Wheel symbols on the first, third and fifth reels trigger the Blazing Wheel Bonus. Randomly, every wedge on the two wheels except for the two jackpot prizes can upgrade up to 10X on the bottom wheel and 50X on the top wheel. Both wheels spin, and the award is the sum of both prizes and/or multipliers.

The top prizes on the wheel are progressive jackpots, resetting at $500 (Major) and $5,000 (Grand).

Bonus symbols on the three middle reels trigger seven free spins. During the free games, any wild symbols landing on the screen stay, and are placed in a random position on the subsequent game.

Manufacturer: AGS Platform: Orion Rise Format: Five-reel, 30-line video slot Denomination: .01 Max Bet: 880 Top Award: Progressive; $5,000 reset Hit Frequency: 25.85% Theoretical Hold: 5.08%-16.19%

Inferno Wheel Gaming Arts

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his new game series from Gaming Arts is the first to feature the patent-pending HaloTop LED topper, a persistent video wheel feature activated by wild symbols and possibly leading to one of three progressive prizes.

There are two inaugural games for the series, Aztec Awards and Polynesian Pays. Base games in both are in the 243-ways-to-win scatter format. In the primary game on each, wild symbols on any of the reels either improve the value of one of the wheel wedges or trigger the wheel to spin. It’s a frequent feature, appearing every seven to 10 spins on average.

The increased wedge awards on the wheel remain in place until the wheel spin is triggered. Awards on the wheel range from 5 times the bet to the Minor, Major or Max progressive. The Max progressive resets at $1,200 on Aztec Awards, and at $3,000 on Polynesian Pays.

Each game also features a free-spin bonus. On Aztec Awards, three or more Aztec Mask symbols award eight free games, with wins starting at a 2X multiplier. Every Blue Gem symbol on reel 5 during a free spin increases the multiplier by one. Every Red Gem symbol adds a free game. Three or more Aztec Mask symbols retrigger the free-spin round with eight games.

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Global Gaming Business FEBRUARY 2021

On Polynesian Pays, three or more Tiki symbols give the player a choice of five to 12 free games with different multiplier levels, or a “Mystery Free Games” selection of free games and multipliers. One or more Volcano wild symbols on a free spin causes the volcano on the top screen to erupt, revealing a multiplier. As with the other game, the free-spin feature can be retriggered with three Tiki symbols.

Manufacturer: Gaming Arts Platform: Phocus S104 Format: Five-reel, 243-ways-to-win video slot Denomination: .01 to 50.00 (higher denominations available) Max Bet: 25, 50, 250, 500 Top Award: Progressive; $1,200 and $3,000 resets Hit Frequency: Approximately 30% Theoretical Hold: 1.8%-14.3%

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Lucky Ox IGT

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his game celebrates the upcoming Chinese Year of the Ox. The base game is a five-reel, 20-line video slot on IGT’s premium CrystalCurve cabinet.

The game consists of multiple proven features such as progressives, nudging wilds and free games, as well as added elements including the Lucky Ox bonus and mystery jackpot bonus.

The game also includes prizes on top of each reel that award credits, 10 free games, and the jackpot. At the start of each game, new prizes are shown above the reels, and when the Lucky Ox symbol is in any position on the reels, the corresponding prize is awarded.

If a wild symbol appears in any position on the reels during the base game, the reels with the wild symbol may nudge up or down one position and may cause the Lucky Ox symbol to appear.

Powerball Super Bank Scientific Games

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his is a unique video slot series themed around the famous multi-state Powerball lottery.

Bonus features revolve around the air-propelled white balls released into the chamber on TV lottery drawings. The inaugural games in the series are Powerball Super Bank Cash Star and Powerball Super Bank Country Gold.

The base games are five-reel video slots available in configurations of 10, 40 or 50 paylines, on either the TwinStar J43 curved portrait cabinet or the large-format TwinStar Wave XL. Both games are centered on three separate bonus events with sequences that mimic lottery ball draws.

A red lottery ball on the fifth reel triggers the Bonus Draw Feature. An image of a lottery draw machine appears, and draws a ball to award a credit prize ranging from five to 500 times the total bet, or one of four jackpots—static prizes $20 (Mini) or $50 (Major), or progressives resetting at $500 (Major) and $15,000 (Mega).

If the draw was awarded from the base game, then each time 10 free games are awarded, a bonus of two times the total bet will also be awarded. If a Major or Mega jackpot is awarded, the value displayed in the corresponding meter is awarded.

The Lucky Ox bonus is triggered if the jackpot is awarded during the base game prize feature or the free games prize feature.

In this bonus, players will spin a wheel and win the jackpot or credit value wherever the wheel stops.

The Lucky Ox game is a 50-credit cost-to-cover game.

Manufacturer: IGT Platform: CrystalCurve Format: Five-reel, 20-line video slot Denomination: .01 to .10 Max Bet: 500 Top Award: 110,800 Hit Frequency: Approximately 50% Theoretical Hold: 4%-15%

When free games are awarded through the Bonus Draw Feature, during each of 10 free game spins, a white ball may land on reels 1-4 and display a credit prize of up to 3,750 times the bet, one of the jackpots, another Bonus Draw, or the Powerball Super Bank.

The free game feature includes a “Super Bank” tube that is independent from the one in the base game.

Any white ball landing on reels 1-4 displaying one of the prizes triggers the main Powerball feature.

If a red Powerball appears on reel 5, the awards displayed on the white balls on the grid are awarded.

If a red Powerball does not appear on reel 5, the white balls on the grid are sucked into the Super Bank tube, beginning with the leftmost reel. An animated ball-draw sequence ensues that can result in multiple jackpots, multipliers and credit awards.

Manufacturer: Scientific Games Platform: TwinStar J43, TwinStar Wave XL Format: Five-reel, 10-, 40- or 50-line video slot Denomination: .01 to 1.00 Max Bet: 75, 300, 600 Top Award: Progressive; $15,000 reset Hit Frequency: 36.61% Theoretical Hold: 6.05%-15.5% FEBRUARY 2021 www.ggbmagazine.com

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CUTTING EDGE

by Frank Legato

Classy and Comfortable PRODUCT: Savannah Chair MANUFACTURER: Gary Platt Manufacturing

erfectly funky and brilliantly cutting-edge, Gary Platt’s new Savannah casino chair model is built from the ground up to impress with distinctive features from top to bottom, and front to back.

Gary Platt’s teams of artisans has been bringing unsurpassed design to casino seating for more than 20 years, and is dedicated to creating hand-crafted pieces of furniture that fit each property’s unique brand.

Such was the case with Savannah, which was originally created for San Manuel Casino’s high-limit gaming area, Vault Gaming & Provisions. Gary Platt’s creative team was inspired by the Vault Gaming & Provisions’ steampunk design and décor.

Using that inspiration, the team designed Savannah with features such as a custom-upholstered back and hand-stitched channel front. The chair’s sides are a flowing river of waves that cascade from the top of the chair down to the perfectly engineered seat filled with Gary

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Platt’s signature cold-cured foam for unsurpassed comfort. Gary Platt’s exclusive coldcured foam ensures consistency in the shape, density, and quality of each chair. Plus, it’s highly elastic and retains its firmness even after years of use.

Additionally, like each of Gary Platt’s chairs, the Savannah contains dozens of ergonomic design elements—like a curved seat front—that complement the foam blend for unsurpassed comfort.

Operators can customize the Savannah to their unique brand in multiple ways, including a variety of bases and finishes.

Gary Platt’s artisans handcraft every chair down to the most minute detail to create the perfect chair.

For more information, visit garyplatt.com.

Contact-Free PRODUCT: NFC Mobile IO Device MANUFACTURER: JCM Global

CM Global’s NFC Mobile IO device is the latest innovation from the world leader in secure transaction gaming solutions. NFC Mobile IO stands for “Near-Field Communication Mobile Input/Output,” and is a smallform-factor network module. The unit is mounted to the front exterior of an EGM, enabling contactless transactions at any EGM operating with JCM’s iVIZION bill validator, GEN5 printer, and FUZION technology.

JCM’s NFC Mobile IO gives players the ability to interact with the EGM using a secure mobile connection, primarily to enable contactless financial transactions.

However, JCM designed the device to be incredibly flexible, giving operators multiple options to use it with other applications developed by third-party providers.

For example, any application can interface with NFC Mobile IO through secure APIs. This means operators bring enhanced mobile interaction to players while they are on property. Operators can also further future-proof their floors by establishing NFC Mobile IO as a mobile transaction portal for current and future casino applications.

With NFC Mobile IO connecting to the player’s mo-

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Global Gaming Business FEBRUARY 2021

bile device, applications can notify players of available mobile marketing and promotions, expiring player funds, or specific events, greatly enhancing the property’s marketing abilities as well as the player experience.

JCM’s NFC Mobile IO allows for locationbased services and geolocation validation, bringing both added convenience and security. For example, as the customer interacts with NFC Mobile IO, operators can verify the identity and location of every transaction (financial, promotional, gaming, etc.), and suspicious activity and money laundering can be tracked directly back to all user accounts.

JCM selected NFC technology for the device because the short-range connection that is inherent in NFC provides enhanced security, seamless communication, and zero interference with other devices. NFC technology has been globally proven to be convenient and versatile, and it is the industry standard for mobile payment providers.

For more information, contact your JCM representative.

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FRANKLY SPEAKING

by Frank Legato

Food, Technology and Mickey Mouse

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Global Gaming Business FEBRUARY 2021

You can eat, and then go to one of the Art District attractions. (Like the Cockroach Theatre. Seriously.)

My apologies to the food vendors’ union, or association, or whatever organization of which leaders might be offended by my admittedly stereotypical depiction of a mobile food service.

I pledge to eat from one of the trucks once they’re up and running. I’m just going to have a hard time forgetting when I found hair in my food-truck sesame chicken in Philly. I never had the nerve to go back and ask the vendor what kind of chickens have fur, because quite frankly, I didn’t want to know the answer.

I’ll tell you what. Show me a food truck that can make an authentic Philly cheesesteak, including an Amoroso’s roll, and I’m there. That’s something you just can’t get in Las Vegas. (And at least I know cows have fur.)

Oklahoma’s Quapaw Nation has a better idea.

The tribe’s Downstream Casino Resort has a farm out back, growing crops, and even maintaining cows and bison. They have 80 beehives for fresh honey, for crying out loud.

Now there’s some food I can trust. (I won’t ask how the slaughterhouse process works.)

Finally, not all of this month’s casino news was related to food. The Walt Disney Company is looking to expand its ESPN+ streaming service with a bunch of sports betting-related content. ESPN—80 percent owned by Disney—already has deals in place with Caesars and DraftKings for its show The Daily Wager, which gives viewers the day’s best bets.

Disney fueling sports bets? What’s this world coming to?

Anyone in the industry for a while will remember how Disney fought tooth-and-nail to keep commercial casinos out of Florida, to protect the family-friendly atmosphere surrounding Walt Disney World. The company has worked hard to disassociate anything related to the Magic Kingdom from the evils of wagering.

Well, except for that one cartoon where Mickey Mouse was in a derby hat smoking a cigar, giving odds on boxing matches and working with mobsters to shave points and fix games.

No, wait. I’m thinking of Foghorn Leghorn. You know, that cartoon where he took bets from the back of a food truck that didn’t waste any food.

I think the truck served chicken hawk.

VICT OR R INALDO

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hat a brave new world this is. It says here that Melco Resorts is rolling out an artificial intelligence system called Winnow Vision across its properties. Not for security, or Covid-related safety, but “to help eliminate food waste.”

According to Inside Asian Gaming, the gizmo uses a camera, smart scales and machine learning similar to the technology used in driverless vehicles “to recognize food being discarded and calculate the financial and environmental impact of the food waste for commercial kitchens.”

I’m having trouble wrapping my brain around just how this system works. Does someone get an alert on a smartphone if the cook throws out half a pan of lasagna?

What if I throw half my pastrami sandwich in the trash at the food court? Will I be wrestled to the ground by security guards?

Apparently, the system worked well during a six-month trial at City of Dreams in Macau.

According to the article, it “saved 3,915 kilograms of food waste... representing a 67 percent reduction.” But what did they do with that heap of unwasted food? Did they recycle it? “Surprise Loaf” in the employee dining room, maybe?

I know, I know. They identify waste and then don’t buy as much food next time. Melco has announced the goal of achieving zero waste by 2030, “contributing to circular economic leadership in Asia.”

Circular leadership? I think that means everyone follows leaders around in circles, and... oh, never mind.

Speaking of food, there’s a group that is pitching the idea of a fleet of food trucks in the Downtown Las Vegas Arts District, to get everyone through any bans on indoor dining imposed by the city.

Let me get this straight. With casinos shutting down buffets left and right because of health concerns even when indoor dining is permitted, people are going to be fine getting food from some unshaven, ponytailed, pot-bellied dude in a converted bread truck? I worked for six years in Philadelphia, where there are food trucks scattered around everywhere. There were a few that were a bit, well, questionable in apperance.

Oh, I’m sure the mobile food vendors opening up in Las Vegas are completely sanitary. The “Urban Food Lot” is planned for a 7,400-square-foot vacant lot that will accommodate 10 food trucks.

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GOODS&SERVICES EVERI TO LAUNCH CASHLESS PAYMENT TECHNOLOGY IN FLORIDA

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aming supplier Everi Holdings Inc., in conjunction with the Seminole Tribe of Florida, will launch its WildCard Wallet across casinos operated by Seminole Gaming.

A digital wallet powered by Everi’s CashClub Wallet solution, WildCard Wallet is a mobile wallet solution that provides cashless, touchless funding of electronic game play throughout the casino floor. The WildCard Wallet is currently live for funding electronic game play, and is also enabled for food and beverage and retail outlet purchases at Seminole Hard Rock Hotel & Casino Hollywood and Seminole Classic Casino.

After the initial launch at the Seminole Hard Rock Hotel & Casino Hollywood and Seminole Classic Casino, a rollout to other Seminole gaming locations, including Seminole Hard Rock Hotel & Casino Tampa, will be fully completed in the first quarter of 2021.

CashClub Wallet provides casino operators and their customers with a flexible, cost-effective, secure payment method, on and off the casino floor. Creating a contactless environment that provides an alternative to cash, the CashClub Wallet application gives Seminole Hard Rock Hotel & Casino Hollywood and Seminole Classic Casino patrons the ability to deposit funds into their digital wallet at their convenience—on-site or away from the resort—via a bank card.

Patrons can then access these funds for use directly at retail locations and at the game, enabling the casino to offer a fully cashless solution and the ability for patrons to manage spend limits in support of responsible gaming.

This mobile wallet serves as the catalyst for Everi’s transformation of gaming-patron funding of gaming experiences, either on-premise or online. Everi’s launch of the new CashClub Wallet is the first step in its efforts to provide omni-channel experiences across the casino floor and across the gaming sector.

CashClub Wallet is the latest example of cashless, contactless solutions gaining traction as a result of the Covid-19 pandemic, as patrons seek to guard against the spread of the virus by avoiding cash handling.

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IGT CASHLESS SYSTEM APPROVED IN NEVADA

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nternational Game Technology PLC has announced that the supplier’s Resort Wallet “carded cashless” gaming module has been approved by regulators in Nevada. The cashless play system will be available as part of the IGT Advantage casino management system.

The Resort Wallet carded cashless module enables players to use a loyalty card to transfer cash into a secure digital wallet from either the casino cash desk or any Resort Wallet-enabled slot machine. Players can then insert their PIN-protected card into the slot machine, apply those funds to their game play, and cash out to their secure digital wallet at any time.

They can also choose to move a portion of their funds from the slot machine to their digital wallet while printing a ticket at the slot machine for the balance.

The carded cashless module is one of three variations available as part of IGT’s Resort Wallet solution, the industry’s only fully integrated, turnkey cashless technology.

A variation of the Resort Wallet solution includes cardless cashless, where players tap their smartphone on a slot machine or table game to card in. They can then access their Cashless Wagering Account, load cash into the account from either the casino cashier, kiosk or slot machine, then transfer funds between slot machines onsite, as well as between a casino’s properties.

Cashless with external funding represents the full-service variation of the Resort Wallet solution.

It combines Resort Wallet with IGTPay, IGT’s proprietary external funding gateway. Players access their Cashless Wagering Account from a mobile app, with the flexibility to load their account securely and directly with funds from external sources such as credit and debit cards, bank accounts and ewallets.

In addition to slot play, patrons can seamlessly access the funds in their Resort Wallet Cashless Wagering Account for table gaming, sports betting and

Global Gaming Business FEBRUARY 2021

at retail points-of-sale.

All Resort Wallet modules encourage social distancing on the gaming floor by reducing lines at the casino cash desk and kiosks. They generate greater operational efficiencies by reducing cash-handling costs and associated safety and security risks. Cashless play lessens machine maintenance by reducing cash handling, and results in fewer cash handling errors.

In a separate development that will affect IGT’s cashless play solutions, the company has secured a U.S. patent on a system to transfer cryptocurrency such as Bitcoin from virtual wallet accounts to slot machines.

Previously, cryptocurrency fans have had to convert their holdings into cash at special crypto ATMs on casino floors before wagering. But last year, the Nevada Gaming Commission made it easier for casinos to introduce cashless systems, letting players transfer funds from smartphones to gaming machines directly.

ARISTOCRAT DEBUTS TIMBER WOLF DIAMOND

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n January, Aristocrat Technologies marked the launch of Timber Wolf Diamond, a new version of one of the supplier’s all-time favorites, presented on the new Neptune Double cabinet.

Timber Wolf Diamond reprises the theme in a game the company says is the latest evolution of one of the industry’s top performing games, Buffalo Diamond.

Mohegan Sun celebrated the occasion by inviting 250 Momentum loyalty club members to experience the slot game first.

The classic characters and symbols from Timber Wolf are featured in the game along with a lineup of new features. Timber Wolf Diamond offers 2,400 ways to win, along with four levels of Cumulative Free Games with a 2X-to-4X multiplier. This is combined with Timber Wolf’s classic 3X and 5X wild re-spin feature.

The game is one of the first on Aristocrat’s imposing Neptune Double cabinet, billed as the follow-up to the popular Arc Double cabinet, featuring stacked, curved 49-inch monitors, 4K graphics and custom-designed and adjustable sound chairs. Ergonomics of the new cabinet allow for comfortable

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viewing of the two screens at a perfect angle. The player can see the top progressive immediately overhead in the configuration.

PENNSYLVANIA LAUNCHES CONSCIOUS GAMING’S PLAYPAUSE

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onscious Gaming and the Pennsylvania Gaming Control Board have jointly deployed “PlayPause,” an innovative self-exclusion tool for internet-based gambling created to modernize and strengthen the effectiveness of the U.S. gaming industry’s responsible gaming programs.

This was the first deployment of PlayPause in the United States, with the solution being made available at no cost to operators and regulators via Conscious Gaming, a new nonprofit organization established by GeoComply.

The system is designed for regulators and licensed gaming operators in one state to securely identify self-excluded patrons who chose to participate in the program with other participating U.S.licensed gaming operators and regulators. The

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announcement underscored the commitment of Conscious Gaming and the gaming board to uniting the industry to achieve shared responsible gaming goals and protect consumers.

Elizabeth Lanza, director of the Office of Compulsive and Problem Gambling of the Pennsylvania Gaming Control Board, said individuals who sign up for the Self-Exclusion Program in Pennsylvania will be provided the option of participating in PlayPause to assist them in extending the self-exclusion to other jurisdictions as they deploy the tool.

“We are thrilled to see our vision for a national self-exclusion tool come to life with Pennsylvania’s PlayPause launch,” said Anna Sainsbury, Conscious Gaming trustee and GeoComply chairwoman and co-founder. “We are looking forward to further collaboration with industry stakeholders to expand coverage and impact for this solution.”

Powered by GeoComply, which provides the Pennsylvania Gaming Control Board licensees with a geolocation service that effectively blocks participation in internet-based gaming when the player is not within the commonwealth’s borders, the PlayPause solution will: • Expand the protective self-exclusion bubble so that as players move from state to state, the protection they asked for can move with them;

Global Gaming Business FEBRUARY 2021

• Enable consumers to self-exclude across multiple states to prevent simply crossing a state line and continuing to gamble; • Empower operators to strengthen responsible gaming programs and make more data-driven decisions, with greater insights into players that have already self-excluded in one state but need to be recognized and protected if/when they seek to play in another jurisdiction; and, • Streamline the administrative burden and eliminate the silos associated with maintaining numerous separate state-operated self-exclusion databases.

GAMING ARTS LOOKS AHEAD TO ‘MEANINGFUL GROWTH’

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ike Dreitzer, president of Gaming Arts LLC, a Las Vegas-based manufacturer of electronic gaming machines, bingo, keno and interactive casino-wide promotional systems, is looking forward to a year of growth Mike Dreitzer, after the never-before experiPresident, Gaming Arts enced challenges of 2020.

“Needless to say, it’s been a very difficult year for everyone,” he said. “From the beginning of this crisis, our focus has been on helping our customers, employees and communities as much as possible, while using the time wisely to position Gaming Arts for meaningful growth within the gaming industry in 2021.”

The company deployed its first slots at Valley View Casino in San Diego County in 2019. Then it placed more than 500 machines across the country in “record time,” Dreitzer said. He expects that momentum to continue in the coming years.

In November, the company revealed a new patent-pending HaloTop wheel cabinet along with several new games, including Inferno Wheel. This family of games features a patented persistence feature where values on the digital wheel go up as the action speeds up.

Hamster Libre is a game that has been approved for this cabinet.

Several months ago, the company unveiled Casino Wizard, a single-player table multi-game with takes on classic table games such as blackjack and craps.

Next summer, it will introduce a new vertical cabinet, VertX Grand, that will include a 49-inch portrait display with a library of games.

It will also introduce newly created historic horse racing games.

Finally, it will make available a suite of UVC disinfection products designed to make casinos safer.

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PEOPLE INDUSTRY VETERAN RON LURIE DEAD AT 79

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ongtime gaming industry veteran Ron Lurie died December 22 at the age of 79. A Ron Lurie Las Vegas lawmaker for almost 20 years, Lurie also served a single term as the city’s mayor.

According to the Las Vegas Review-Journal, Lurie suffered from blood cancer and associated health problems complicated by Covid-19.

Tributes poured in from public figures including Nevada Governor Steve Sisolak, who wrote on Twitter, “Ron was a dear friend and an exceptional public leader who devoted two decades of his life to public service. Kathy and I are holding the Lurie family close in our hearts.”

Las Vegas Mayor Carolyn Goodman called Lurie’s death “a loss for our community. Ron was a man with a giving heart and huge smile.”

Lurie was a second-generation Las Vegan whose father, Art, was a boxing judge and former chairman of the Nevada Athletic Commission. He spent 14 years on Las Vegas City Council before serving as mayor from 1987 to 1991. He declined to run for a second term, and in 1999 became general manager of Arizona Charlie’s Decatur, his “real home,” according to son Ben. The property’s signature restaurant carries his name: Ron’s Steakhouse.

Lurie retired in January, but remained “an ambassador” for Arizona Charlie’s. A statement from Golden Entertainment, which owns and operates the property, said Lurie “made an indelible mark on Las Vegas through his work as a leader in the gaming industry, as a philanthropist, and as the former mayor of Las Vegas. Through his work as a civil servant, in his gaming career and in his daily life, Ron was a champion for our community and was committed to making Las Vegas a better place for future generations.

CHURCHILL DOWNS NAMES ANDERSON PRESIDENT

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hurchill Downs Inc. (CDI) in Louisville, Kentucky recently promoted three executive employees.

CDI named Mike Anderson the 14th president at Churchill Mike Anderson Downs Racetrack, home of the Kentucky Derby. Anderson joined CDI in 1996 as controller and has served as vice president of corporate finance and treasurer.

Most recently as vice president of operations, he

managed the planning, construction and opening of more than $300 million in capital projects at numerous CDI properties.

CDI also appointed Mike Ziegler as senior vice president and general manager at Churchill Downs Racetrack. Ziegler will continue to serve as executive director of racing for the company as CDI conducts a search to support him in that function. He joined CDI in 2015, and previously served in numerous leadership roles across the industry.

CDI also named Ryan Jordan as vice president of operations, corporate. He will oversee operational support for all business units. Jordan joined CDI in 2009 as vice president of operations for Churchill Downs Entertainment Group. Later he was appointed senior vice president and general manager of Churchill Downs Racetrack.

SJM CFO RETIRES, TOH NAMED NEW CFO

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PENN CFO WILLIAMS STEPS DOWN; HENDRIX STEPS IN

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n December 31, David Williams stepped down as executive vice president and chief financial officer for Penn National Gaming Inc. In January, the company announced that, subject to customary reguDavid Williams latory approvals, Felicia Hendrix would take his place. Hendrix will join Penn National as executive vice president and CFO on March 2 following more than 20 years as an equity research analyst covering the gaming, lodging and leisure industries.

Hendrix will report directly to Penn National Chief Executive Officer Jay Snowden. Williams has agreed to stay with the company in a temporary advisory role to help ensure a smooth transition.

Hendrix most recently was a managing director and equity research analyst at Barclays covering the gaming, lodging and leisure industries, and had been consistently recognized in the Institutional Investor All Americas Research Team polls.

Her varied coverage universe spanned companies with market caps ranging from $2.5 billion to $45 billion, and comprised differing revenue bases, cost structures, leverage levels and management depth.

MGM NAMES HALKYARD CFO

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Halkyard was CFO of Caesars Entertainment for his last five years with the operator, after which he was CFO of Nevada Energy, and two years ago became CEO of hotel operator Extended Stay America.

While at Caesars—still known as Harrah’s Entertainment when he was hired in 2006—Halkyard led some of the company’s largest acquisitions, including Horseshoe Gaming, the World Series of Poker, London Clubs International and the $9 billion merger with the former Caesars Entertainment. He also was part of the leadership team that oversaw the $30 billion sale of Caesars Entertainment to private equity firms TPG and Apollo.

ast month MGM Resorts International announced the appointment of Jonathan Halkyard as MGM’s new chief finanJonathan Halkyard cial officer. Halkyard, who spent 13 years as an executive of MGM rival Caesars Entertainment, replaces Corey Sanders, who became MGM Resorts’ chief operating officer last year.

JM Holdings Chief Financial Officer Bob McBain retired effective January 1, and was succeeded in the role by Ben Toh Hup Hock. McBain will be retained as an adviser to Sociedade de Jogos de Macau SA, the unit that holds SJM Holdings’ Macau gaming license, said the casino group, Ben Toh Hup Hock according to a filing with the Hong Kong Stock Exchange.

Ben Toh joined the SJM SA unit in October as chief operating officer (finance and development).

Toh was CFO at rival Macau casino operator Sands China Ltd. from June 2010 to April 2016, as well as being a company executive vice president and executive director there during that period.

GGB

February 2021 Index of Advertisers

AGEM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9 Aristocrat . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17 AGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 Casino Player Media . . . . . . . . . . . . . . . . . . . . . . .52 Erin O'Boyle Photographics, LLC . . . . . . . . . . . . .27 Everi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 Fantini Research . . . . . . . . . . . . . . . . . . . . . . . . . .50 GAN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 GGB Digital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .49 GGB News . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10 HBG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21, 39 IGT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11 IT Technology Solutions (BetConstruct) . . . . . . . .55 iGaming Player . . . . . . . . . . . . . . . . . . . . . . . . . . .51 J Carcamo & Associates . . . . . . . . . . . . . . . . . . . .47 Konami Gaming . . . . . . . . . . . . . . . . . . . . . . . . . .56 Reed Expo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45 Tribal Government Gaming . . . . . . . . . . . . . . . . .33 UNLV Division of Philanthropy & Alumni Engagement . . . . . . . . . . . . . . . . . . . . .23

FEBRUARY 2021 www.ggbmagazine.com

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CASINO COMMUNICATIONS

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Hector Fernandez

&A

President, Americas, Aristocrat Technologies

W

hen Hector Fernandez was named president of the Americas division of Aristocrat Technologies, the company had already experienced a long period of success. As the company moved into its new Las Vegas headquarters, Fernandez was charged with keeping up the momentum. And when the pandemic hit, he doubled down on game development by keeping his staff employed and creative.

Speaking with GGB Publisher Roger Gros over Zoom from his home in Las Vegas in December, Fernandez explained why that decision was made and what benefits he expects will flow from it in the future.

To hear a full podcast of this interview, including where Aristocrat stands in route operations, VLTs, Class II gaming and a possible entry into sports betting, visit GGBMagazine.com.

GGB: Before you were appointed to your position as president of the Americas, you worked in finance for quite some time. How did that help you when the pandemic hit, and you had to reevaluate how the company was running?

Hector Fernandez: Obviously, a strong fi-

nance background and training allows you to really look at numbers, dig in and understand trends and what’s happening. But more importantly than my finance background, to be honest, it was really around some of the broad-based experience that I’ve had across different industries. I’ve been very fortunate in my career to work in services at Deloitte, at the premier marketing company at Proctor & Gamble, in biotech at Amgen and at a tech company, Western Digital.

I’ve been through lots of economic cycles and shocks as well. In life you have skills and experiences. You can never substitute experiences. It really allowed us and the team to focus. So when we looked at the impacts of 54

Global Gaming Business FEBRUARY 2021

the pandemic, we needed to keep things very simple. Every decision we made would be around three principles. It would be around our people, our customers and our business. And we picked those in that exact order.

We felt if we could get our people and our customers right, the business would be there.

Those experiences that the team and I have gone through in the past allowed us to keep it simple and focus on the three guiding principles.

One of the things you decided to do was keep your studios operating during the pandemic.

Are you going to continue to do that, or are you going to slow down a bit when casinos start to come back and buy your products again?

You know, great companies invest during times of uncertainty and economic downturns. We’ve seen that throughout history, throughout the various economic shocks we’ve had. The companies that have doubled down and invested are the ones that come out stronger. We knew that was a guiding principle we needed to follow.

Innovation and having the greatest content is what‘s driven the success of Aristocrat, so it was not even a debate. Early on, we knew that slowing down any content development would just hurt the company in the long run. That’s not something we wanted to do. And quite frankly, we were fortunate that we had been conservative financially, so we could. We had the resources to invest, to risk, if you will.

You don’t just oversee Aristocrat operations in the U.S.; you also control Canada and Latin America. Have those two markets been approached any differently during this time?

It’s been fascinating, the pandemic. Because even in the U.S., each state has had a different impact and different reaction. And then when you elevate past the U.S. and you look at Canada, it’s obviously more government-controlled, so there’s a different reaction there. Then if you look at Latin America, they’ve lagged behind us from an

impact standpoint and are also lagging behind us from a recovery standpoint.

The nice thing about Aristocrat is, because we’re truly a global company, it allowed us to actually leverage some of our coworkers and fellow employees from around the world, for example, Asia Pacific, on the impact (the pandemic) was having there, and some of the steps they were taking to address those things. We’ve learned a lot from our Asia Pacific colleagues.

The other thing that’s happened since the pandemic is that the European business has also come under my purview, which is fantastic because there are lots of similarities and things that we can leverage from Latin America across Europe. How do we make sure we think globally but act regionally? (We want to) develop these global principles, leverage the resources globally and then tailor to the regional specific problems that we’re trying to solve.

With all those different jurisdictions under your purview, there are different preferences in terms of games and themes, whether they want more volatility, and so on. How do you prepare your studios to introduce games in each of these markets?

Our roots are Australian roots. That’s incredibly important because gaming really took off in Australia and that part of the world before it came to the U.S., Latin America or Asia. So they’re ahead of us from a maturity standpoint.

Player preferences center around math and volatility, game content and other things. We’ve really taken what we learned from Australia and said, “How can we apply those here in the U.S. and across the other jurisdictions?” We focused on having the best content across the globe, then customizing it for a specific jurisdiction, whether it’s a route market, whether it’s a destination casino, whether it’s a casino in Argentina. We’ve never lost that focus around content, and we’ve leveraged our Australian roots to ensure that we have the best content in the industry.

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