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Global Gaming Business Magazine
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CONTENTS Global Gaming Business Magazine
Global Games 2015 Page 32 Our annual spotlight on new slot games and major slot manufacturers who produce them reveals a changing landscape in the slot sector. Newly merged suppliers from Scientific Games to IGT to Everi and beyond use their combined capabilities to produce new game styles that stretch the definition of a slot machine. By Frank Legato, Marjorie Preston and James Rutherford
33 Ainsworth Game Technology 36 AGS 40 Aristocrat 46 Aruze Gaming Americas 50 Casino Technology/Alto Gaming 52 Everi 58 Incredible Technologies 62 Inspired Gaming 64 International Game Technology 70 Konami Gaming 76 Novomatic/AGI 80 Ortiz Gaming 82 Scientific Games 90 Spin Games 4
Global Gaming Business OCTOBER 2015
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Vol. 14 • No. 10
october
26 COVER STORY One-Stop Shop Its integration of former suppliers Bally, WMS, SHFL and Barcrest nearly complete, Scientific Games emerges as the most diverse supplier the casino industry has ever seen. CEO Gavin Isaacs and his executive team describe how the new Scientific Games’ three divisions work together to leverage remarkable legacy strengths.
COLUMNS 16
AGA Meeting Momentum Geoff Freeman
18
Fantini’s Finance Super CEOs Frank Fantini
By Frank Legato
106 Table Games Cover photo: Gavin Isaacs, president and chief executive officer, Scientific Games Corporation
Making My Point Roger Snow
112 Marketing
FEATURES
Finding the Bull’s Eye Rich Sullivan
20 Hold vs. Income In the wake of a new report linking rising slot holds to declining revenue, operators and slot-makers reassess the role of RTP. By James Rutherford
100 Labor and the Tribes As employees of tribal casinos seek to organize through labor unions, the Native American gaming industry and the U.S. government examine the nature of the business. By Dave Palermo
108 Managing the Attractions As non-gaming amenities expand throughout the gaming industry, many casinos turn to asset managers to get a bigger bang for the buck.
118 Global Gaming Women Mentoring the Next Generation
114 Cash Crunch Cash is the fuel on which the gaming industry operates, and vendors of ATMs and cash-access equipment are riding the wave.
DEPARTMENTS
By Dave Bontempo
6
The Agenda
8
Dateline
122 Creating Competition
14
Consolidation in today’s gaming industry is changing the way companies compete as suppliers, operators and testing labs. By Patrick Roberts
By Marjorie Preston
108
Karla Perez-Larragoite
GGB iGames Our monthly section highlighting and analyzing the emerging internet gaming markets.
iGNA Outlook 94 Diagnosing eSports
15
Nutshell
98
Emerging Leaders With Aristocrat Technologies’ Lauren O’Brien
120 Cutting Edge 125 Frankly Speaking 126 Goods & Services 129 People
Mark Balestra
130 Casino Communications
96 iGames News Roundup
With David Rebuck, Director, New Jersey Division of Gaming Enforcement
OCTOBER 2015 www.ggbmagazine.com
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THE AGENDA
The American Way Roger Gros, Publisher
W
hen Frank Fahrenkopf resigned as president and CEO of the American Gaming Association two years ago, it was the end of an era. Fahrenkopf very ably led the AGA through some turbulent times and prevented the federal government from doing any harm to the gaming industry. Even the establishment of the National Gambling Impact Study Commission, a thinly veiled effort to attack the industry, turned out not to be such a big deal, due largely to Fahrenkopf’s efforts. So when he stepped down after 17 years, there was bound to be a void. And walking into that void was his successor, Geoff Freeman, about half Fahrenkopf’s age, with very little gaming experience. Freeman had much experience with associations, however. He was the COO of the U.S. Travel Association, a group that represented almost every sector of the travel industry, which includes, of course, gaming. Freeman’s desire to hit the ground running, however, almost got him into trouble. When he took the AGA board’s recommendation to support legalizing iGaming in the U.S., he ran afoul of one of the most powerful members of the organization, Las Vegas Sands. He wisely backed off, went neutral on iGaming and began to concentrate on issues with which the entire industry agrees. But first, he built a staff that was uniformly young and enthusiastic. They are very knowledgeable about all the social media channels, and have bought into the proactive style that Freeman has brought to the organization. COO Ron Rosenbaum has loads of experience in Washington and with various associations. Senior VP Sara Rayme is a former MGM exec who completely understands the politics of the gaming industry, and communications head Allie Barth was hand-picked by Freeman from his former organization for her expertise in getting the word out—just to name a few of the qualified people who now operate from the spanking new offices just blocks from the U.S. Capitol. But it’s been the campaigns that Freeman started that have made the difference. To be fair, the AGA has always had conversations, meetings and alliances with federal and state organizations whose policies and procedures impact gaming, but the recent collaborations set up under Freeman’s AGA have been very interactive, with transparent reports sent to industry movers and shakers at each step of the process. While the AGA has always stressed the number of
6
Global Gaming Business OCTOBER 2015
people employed directly and indirectly by the gaming industry and their importance to a wide range of elected officials, the “Gaming Votes” campaign has brought home the impact of their ballots on many members of Congress. In this upcoming presidential election, it’s been enough to make the candidates think twice about their stances on issues important to gaming. Also under Freeman’s watch, the AGA has signed up its first Native American gaming groups. On the board sits Seminole Hard Rock Gaming. Ho Chunk Gaming has also joined as an associate member, and several other tribal groups are considering joining. While some question why tribes are now joining the AGA, it makes perfect sense. Many of the gaming issues on the federal level—anti-money laundering initiatives, the rise of illegal gambling, potentially destructive policies considered by Congress—transcend any particular segment of the industry. So, there is power in numbers, and when tribes and commercial casino companies get together, they are powerful—and Congress has to listen. Freeman has also recruited new members from industries that are related to gaming, but not fully a part of gaming, a model he learned at the USTA. The AGA’s thoughtful approach to legalized sports betting is also a big plus. When you have the commissioner of the NBA saying he believes sports betting should be legalized, the AGA has been filling in the blanks, explaining why this idea makes sense. And the AGA’s vocal opposition to illegal gambling—sweepstakes parlors, grey machines in bars and restaurants, and others—demonstrates that illegal gambling hurts everyone, and efforts to stamp it out should be increased. The AGA has created an impressive task force with top law enforcement officials as members. The proactive strategy of the AGA is evident whenever a gaming-related event makes the news. The AGA always releases a statement explaining why that event is good or bad for the industry and what it would mean if it were repeated. In this election year, the AGA has commented on the importance of gaming votes whenever a candidate visits a jurisdiction where the industry plays a major role, like Las Vegas, Cleveland, Iowa and others. So it seems that Geoff Freeman is certainly following in Frank Fahrenkopf’s vaunted footsteps, but he’s also creating a path of his own—one that benefits the overall gaming industry and all the members of the AGA.
Vol. 14 • No. 10 • October 2015 Roger Gros, Publisher | rgros@ggbmagazine.com Frank Legato, Editor | flegato@ggbmagazine.com Monica Cooley, Art Director | cooley7@sunflower.com David Coheen, North American Sales & Marketing Director dcoheen@ggbmagazine.com Floyd Sembler, Business Development Manager fsembler@ggbmagazine.com Becky Kingman-Gros, Chief Operating Officer bkingros@ggbmagazine.com Lisa Johnson, Communications Advisor lisa@lisajohnsoncommunications.com Columnists Mark Balestra | Frank Fantini | Geoff Freeman Karla Perez-Larragoite Roger Snow | Rich Sullivan Contributing Editors Dave Bontempo | Dave Palermo | Marjorie Preston David Rittvo | Patrick Roberts Robert Rossiello | James Rutherford
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
• Geoff Freeman, President & CEO, American Gaming Association
• Dean Macomber, President, Macomber International, Inc.
• Stephen Martino, Partner, Duane Morris, Baltimore
• Jim Rafferty, President, Rafferty & Associates
• Thomas Reilly, General Manager, ACSC Product Group Eastern Region Vice President, Bally Systems
• Steven M. Rittvo, Chairman/CEO, The Innovation Group
• Katherine Spilde, Executive Director, Sycuan Gaming Institute, San Diego State University
• Ernie Stevens, Jr., Chairman, National Indian Gaming Association
• Roy Student, President, Applied Management Strategies
• David D. Waddell, Partner Regulatory Management Counselors PC Casino Connection International LLC. 901 American Pacific Drive, Suite 180 • Henderson, Nevada 89014 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 2015 Global Gaming Business LLC. Henderson, Nevada 89014 GLOBAL GAMING BUSINESS is published monthly by Casino Connection International, LLC. Printed in Nevada, USA. Postmaster: Send Change of Address forms to: 901 American Pacific Dr, Suite 180, Henderson, NV 89014
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DATELINE USA october2015
MassachusEtts MoMEntuM Wynn gets key approval for Everett casino E
nergy and Environmental Affairs Secretary Matthew Beaton last month ruled that the extensive traffic and environmental impact plan drawn up by Wynn Resorts on its $1.7 billion casino resort project in Everett Massachusetts Energy “adequately and propand Environmental Affairs Secretary erly complies” with the Matthew Beaton state Environmental Policy Act. The approval will allow the project to go forward, with groundbreaking just steps away. The approval came just days after Massachusetts Transportation Secretary Stephanie Pollack sent a letter to the Massachusetts Department of Energy and Environmental Affairs saying that Wynn Everett has adequately addressed the traffic issues that it will create in and around the city of Everett. She called on Beaton to issue a permit for the project to go forward. Pollack’s letter followed one by Massachusetts Attorney General Maura Healy urging Beaton to
deny the permit to Wynn. Healy, a longtime gaming opponent, lives in one of the towns affected by the Wynn project. The decision was hailed by Everett Mayor Carlo DeMaria, who said that the ruling is “validation of the planning, hard work and perseverance of everyone involved.” In a statement issued by Wynn Resorts, Chairman Steve Wynn said the 10,000-page document was “open and fair.” “The process has been meticulous and hardfought and undoubtedly will continue to be so,” he said in the statement. “At moments like this, there is certainly a feeling of gratification and forward movement. It lifts our spirits and energizes us.” Boston Mayor Martin Walsh, who has been engaged in a battle with Wynn over payments that he feels should be made to Boston, said he would fight on. The city will “continue to fight for the best interests and public safety,” he said. Both Beaton and Pollack said Wynn’s contributions to mass transit, including his promise to spend $7 million to upgrade subway operations, would address short-term issues created by the casino. Beaton said the commitment was “unprecedented” by a private developer.
Las Vegas Club Closes
Derek Stevens, who owns two other Downtown casinos, is the buyer
A
fter 86 years of operation, the Las Vegas Club in Downtown Las Vegas has closed. A few years ago, the 400 rooms and restaurant closed as well in the sportsthemed casino. The Tamares Group, which also owns the Plaza, assured that “as many employees as possible” will be transferred to the Plaza. PlayLV operates both properties, with the Las Vegas Club being sold to D Las Vegas owner Derek Stevens and his brother Greg. “Once PlayLV vacates, we’ll be able to begin working on the Las Vegas Club,” Stevens said. “I’m not sure of the scope of the project yet, as I need to get my engineers into the structure for a month and give me an assessment about what may be possible.” Stevens was motivated to purchase the property after the casino planned to open a 8
drug store, which would sell packaged liquor. Stevens initially planned on purchasing the casino five years ago, but the deal never happened. In regards to the proposed drug-store plan, Stevens said, “I tried to let (Tamares) know my perspective on it, and we kind of agreed to disagree. But the reality is, that issue, to a great degree, caused us to start talking again.”
Global Gaming Business OCTOBER 2015
Caesars Atlantic City
Fixing Finances Senior lenders on board with Caesars restructuring he major creditors of Caesars Entertainment’s largest operating company have agreed to a settlement that paves the way for the heavily indebted division to emerge from federal bankruptcy protection. Days after Caesars reported that talks with the senior lenders had stalled, the parent company announced last month that bank and firstlien bondholders owed around $12 billion of Caesars Entertainment Operating Co.’s debt are now behind a restructuring of CEOC as a casino management company whose sizable property assets will be spun off into a real estate investment trust. Caesars says the new structure will erase $10 billion of CEOC’s industry-high $18.4 billion of debt and allow it to focus on negotiating an agreement with second-lien bondholders that it can bring to the federal judge overseeing the reorganization by November. After missing an interest payment due last December, CEOC entered Chapter 11 protection in January amid a flurry of lawsuits from junior creditors challenging a series of earlier moves by Caesars’ private-equity owners that they say stripped CEOC of the company’s most profitable gaming assets to shelter them from an eventual disposition in U.S. Bankruptcy Court. CEOC operates Caesars Palace in Las Vegas, Caesars Atlantic City and a dozen or so regional casinos. Caesars is majority-owned by private-equity firms Apollo Global Management and TPG Capital, who originally took the company private in a $31 billion leveraged buyout completed just as the Great Recession hit in 2008, battering casino revenues in Las Vegas and nationwide and saddling Caesars with debt service that would prove untenable.
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DATELINE EUROPE october2015
Ho’s Tigre de CrisTaL To open in russia Economic zone eventually will span 1,500 acres L
awrence Ho is betting that the Primorye Entertainment Zone, in the far southeastern corner of Russia, will be the next big gambling hub, especially for Asian punters. Tigre de Cristal, developed by Ho’s Summit Ascent Holdings, is the first of 16 planned “super casinos” for the region. The integrated resort will open in September with 119 hotel rooms, 65 gaming tables and 800 slot machines. According to the Macau Daily Times, the entertainment complex, which will occupy 1,500 acres, is expected to attract more than 10 million visitors each year and generate revenues of up to US$5.2 billion annually.
More than US$2.2 billion has been invested in the zone by casino companies drawn by a liberal tax structure—3 percent to 7 percent will go to the Russian government, compared to 39 percent in Macau. The Primorye and nearby Vladivostok are considered more Asian than Russian, and are located much closer than Macau to gamblers in Northern China, South Korea and Japan, the Times reported. Other investors include Russian firms Diamond Fortune Holdings and Royal Time Group.
Wales Casino Could Reopen Aspers Swansea Casino in the U.K. closed in 2012 U.K. casino that opened in 2007 and closed in 2012 may reopen, according to a report in the World Casino Directory. A spokeswoman for the South West Wales Aspers Swansea Casino said the operators have retained a lease on the property as well as its gaming license. The casino did not live up to projections during and after the recession, but since its closing, “Aspers has become the fastest-growing casino company in the U.K.,” the spokeswoman said. The company “has enjoyed phenomenal success with our ‘super casino’ in Stratford, London, as well as also successfully opening another large license venue in Milton Keynes.”
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Football Fanatics U.K. bookmaker kicks off ad campaign ookmaker William Hill is kicking off the U.K. football season with an ad campaign prepared by the creative design agency Bark&Bite called “Take Control,” featuring 30-second spots that will be featured on television, radio, social media and online in conjunction with print ads. They will feature William Hill’s new products including Play Betting, Priority Access Card and Cash In My Bet. The first ads aired on August 23. The ads demonstrate how William Hill customers have more control over their football wagering. The ads are being aired in conjunction with the launch of William Hill’s next-generation web platform.
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10
Barcelona Plays a Winning Hand Poker is becoming a draw for legendary Spanish city he Spanish city of Barcelona is emerging as one of the world’s poker capitals. Ninety-three players gathered in the city’s Casino Barcelona last month for the European Poker Tour Super High Roller Tournament, which opened with table stakes of €50,000 (US$56,400). It was just one of 71 tournaments hosted in the Catalan capital this year, attracting 4,000 players from 150 countries. Considering that it’s been only 12 years since poker was legalized in Catalonia, the turn of events has been remarkable. “Barcelona has been a fixture on the EPT schedule since the very first season and its popularity is demonstrated by the increase in player numbers each year,” said tour President Edgar Stuchly. Barcelona, along with Malta, Prague, Dublin and Monaco, will host the EPT until at least 2017.
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Global Gaming Business OCTOBER 2015
RGI to Bid in Cyprus Plan includes satellite casino, outlet
U
.S. real estate development company Realty Group Incorporated has announced it will bid on the one and only casino license ever approved for the nation of Cyprus. The firm, based in Los Angeles, would work with “a pre-established consortium that consists of prominent institutions and key people already in place to proceed in the bidding process,” RGI said in a news release. Last month, the Cypriot parliament passed legislation that paves the way for a casino resort in the government-held southern part of the island. The minimum requirement for the complex is 100 gaming tables and 1,000 machines. The operator also will be permitted to have a smaller satellite casino and another outlet with just three machines. Under the legislation, the winning bidder for the 30-year license will choose where to build the casino, which will have a hotel with as many as 4,000 guest rooms. The plan is expected to boost tourism on the island. The government estimates 25,000 jobs will be created by the development, which could be open as early as 2018. Several large plots of land totaling more than 1 million square feet are available for purchase for such a project, the release stated. The parcel is close to the ocean and the airport, according to RGI. The company says the land is potentially the largest piece of land with road access; it features a natural salt lake that is famous for an annual flamingo migration.
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DATELINE ASIA october2015
Casino Hopes Fading in Japan—again Best bet now lies in a special session later this year
J
apan’s ruling Liberal Prime Minister Shinzo Abe Democratic Party has finally given up on its bid to get casino-enabling legislation passed during the current regular session of the Diet that ended September 27. Pushed aside by controversial national security bills that would allow Japan to exercise its military power in self-defense for the first time since the end of World War II—a top priority of Prime Minister Shinzo Abe’s administration—the gaming legislation is expected to resurface in a planned extraordinary session later this year, but its fate will be uncertain then as well, according to observers. The LDP decided to put the casino bill on the back burner because handling it could intensify criticism of the party and possibly have a negative effect on the Diet’s debate of the national security bills. Opposition from the LDP’s Buddhist-based coalition partner Komeito, combined with a lack of popular support and the need to pass more pressing legislation, doomed a legalization bill last year, and the measure is running up against the same obstacles in 2015. Komeito, for one, has shown no sign of a change in its position on the casino bill, which lacks sufficient social mitigation provisions in its view.
CHINA’S TROUBLES COMPOUND MACAU’S PROBLEMS Government crackdown continues
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s Macau works to diversify away from a one-business economy based on casino revenues, one of its biggest assets could now be perceived as a fundamental weakness. According to a new report from Fitch Ratings, “The biggest impediment to diversification for Macau may be what casino operators and investors consider its main strength—its proximity to China.” Why? The report states that the passion for high-stakes gambling among high rollers from mainland China and Hong Kong enabled Macau to prosper without developing other tourism attractions—or even its mid-market gaming base. With VIP gaming on the slide due to greater scrutiny by the government, the whole city is at risk. The devalued yuan or renminbi will make it harder for travelers to visit Macau, and more expensive when they get there. Though other markets in the region have banked on China’s growth, “none of them are as dependent on China as Macau,” according to the Forbes piece. “Betting on China is still likely to pay off in the long run. But recent weeks make that long run appear substantially longer.”
KOREAN COUNTDOWN
Government OKs nine IR sites for RFPs
L
ast month, South Korea’s Ministry of Culture, Sports and Tourism selected nine sites eligible for foreigners-only integrated resorts. The ministry will Caesars and Lippo plan a foreigners-only now conduct an RFP process for each site. A casino resort in Jeju, which is not part of the government’s site OKs previous non-binding RFP process had attracted 34 proposals across 10 distinct regions throughout Korea. One of those regions is Incheon, for which there were 16 different RFP proposals for six sites. Six of the nine sites that have now been short-listed are within Incheon, one is in Busan, with one site each in the southeast province of Gyeongnam and the southwest province of Jeonnam. The RFP process has specifically excluded Jeju because Jeju is a selfgoverning province and will conduct its own RFP. The successful applicants must complete their projects within four years of the RFP. RFPs are due by November, and the government will begin its RFP review in December and ultimately intends to issue two new IR licenses. Union Gaming Group analyst Grant Govertson says these could be the final licenses available in Korea, not including Jeju. “We believe these will likely be the final IR licenses to be awarded for the foreseeable future in Korea,” he wrote in a note to investors. There was no indication in this announcement that the government was considering allowing Korean citizens to gamble in these IRs.
Naguiat Says Philippines in Growth Mode Chairman: GGR could increase 20 percent in 2015
C
ristino Naguiat, chairman of the Philippine Amusement and Gaming Corp., has denied speculation that the country’s gaming industry is in a slump. “The revenues are still up,” he told the Philip- Cristino Naguiat pine Star after several operators posted poor results during the second quarter of 2015. “This has nothing to do with gaming behavior,” but costs incurred by investors who are growing the industry, said the PAGCOR chief. In the July interview, Naguiat said gross gaming revenues in the Philippines could hit $3 billion this year, a 20 percent year-on-year increase. The Philippines, like other Asian countries, had hoped to cash in on the exodus of mainland Chinese gamblers who once patronized Macau. A new initiative by China’s Ministry of Public Security, known as “Operation Chain Break,” is expressly designed to keep foreign casinos from marketing to Chinese gamblers. In addition, the weaker Chinese currency could keep some travelers at home, and quench the appetite of even dedicated gamblers. OCTOBER 2015 www.ggbmagazine.com
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DATELINE TRIBAL october2015
Martha’s Vineyard Wagering WaMpanoags In narrow vote, tribe affirms bid to build bingo hall o
The Wampanoag Tribe of Gay Head (Aquinnah) will convert an abandoned community center to a bingo hall
pponents of the Class II bingo hall proposed by the Wampanoag Tribe of Gay Head (Aquinnah) on Martha’s Vineyard, Massachusetts, failed to drum up enough votes in a referendum to kill the project. However, its ultimate fate still rests with a federal court that has not yet issued a ruling on its legality. The vote in the tribal referendum was split exactly 110 to 110, but it would have required a two-thirds vote to overturn the previously adopted decision to build a casino and deploy 300 electronic bingo machines (but no Las Vegas-style games). Many of those voting made a special trip from the mainland, where the majority of the tribe resides. Most of the tribal residents of the island oppose the casino, while the mainland residents support it. The vote took place a short distance from the location of the proposed casino.
So Near, Yet So Far Hold On, Florida, Seminoles close to compact Partner!
A
fter a stalemate of several months, Florida Senate Regulated Industries Chairman Rob Bradley said he and House Regulatory Affairs Chairman Jose Felix Diaz recently met with Tim Cerio, Governor Rick Scott’s top lawyer, and officials of the Seminole Tribe regarding compact negotiations. The state and the tribe have been at odds over the issue of banked card games, which the tribe offers exclusively at five of its seven Florida casinos, in return for giving the state $1 billion over five years. That portion of the 2010 agreeFlorida Senate Regulated Industries ment expired July 31, but it Chairman Rob Bradley gave the Seminoles 90 days to phase out the games. “We are now actively engaged in discussions back and forth with the tribe,” Bradley said. “There is a lot of activity and we’re moving forward. I’m hopeful that we can reach a point where we have something to offer to the membership to consider and debate.” Both sides want to finalize a new pact before that time period runs out on October 1. “The closer we get to the deadline, the more pressure is put upon the parties to find a resolution. Deadlines are very useful in that way. I would anticipate that if a deal is to be had, it would be done within the deadlines contained in the agreements,” Bradley said.
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Global Gaming Business OCTOBER 2015
Gun Lake Casino is no longer contributing funds to the state as required by a compact
Tribe stops payments over online lottery
he Michigan Economic Development Corporation recently said the state could expect budget deficits of $7 million-$60 million if more tribes begin withholding revenue-sharing payments, as the Match-e-be-nash-she-wish Band of Pottawatomi Indians, known as the Gun Lake Tribe, did two months ago. Gun Lake officials said they are no longer obligated to share gaming proceeds from their Gun Lake Casino in Allegan County, as required by the state gaming compact. Tribal leaders said the state broke the non-compete provision of the compact when the Michigan Lottery started to sell online games last summer. The state disagrees that it violated the compact by offering the games on its website and new electronic ticket-dispensing machines. So far in 2015, net proceeds from online lottery sales total $15.9 million. After the tribe withheld its $7 million payment, MEDC Chief Executive Officer Steve Arwood said layoffs were possible as the agency reorganizes based on the decreased revenue. MEDC officials haven’t spelled out what programs or services could be cut or changed, nor how many employees could lose their jobs. However, Arwood said the financial effects could be twice as impactful in the 2016 fiscal year starting October 1 if the tribal casino revenue-sharing issue isn’t resolved. The Gun Lake Tribe could decline to make its biannual payments this fall and
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next spring. “It goes without saying that the scale and scope of our program must be reduced,” Arwood said. Besides the Gun Lake Tribe, the Little River Band of Ottawa Indians, Little Traverse Bay Bands of Odawa Indians, Pokagon Band of Potawatomi Indians and the Keweenaw Bay Indian Community have funded MEDC community development, business attraction and tribal business programs. Under Gun Lake’s compact, which features a graduated revenue-sharing system, the tribe pays 8 percent of net winnings up to $150 million, and 12 percent of net winnings of at least $300 million. The tribe issued a statement noting both parties were aware the relationship would change if online lottery sales came about. “At that time, it was clear that internet lottery sales would result in elimination of the tribe’s state revenue-sharing payments,” the statement said. “Both parties agreed that if the state introduced internet lottery sales or expanded other forms of electronic gaming to social clubs within the tribe’s market area, the tribe would not have to make state revenue-sharing payments.”
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DATELINE GLOBAL october2015
Done Deal? Fung: Third Queensland license will go to Aquis J
ustin Fung, CEO of the Aquis Group, says he expects his planned multibillion-dollar casino resort on the Great Barrier Reef to be approved by the Queensland government under recently elected Labor Premier Annastacia Palazczuk. “We are still confident about the Yorkey’s project,” said Fung, son of Hong Kong billionaire Tony Fung. “We’ve had a lot of really good discussions with the new government in the past few months, but of course, there are a lot of boxes to be ticked. Casinos are possibly the most regulated industry in the country.” The previous administration under Campbell
Newman approved three mega-casino resorts for Queensland. Fung purJustin Fung, CEO of Aquis chased land at Yorkey’s Knob in northern Cairns and has proposed an $8.15 billion complex there. The project has cleared the environmental hurdles, but still needs approvals from local councils and possibly the federal government. Two resorts have been OK’d for the Australian state: the Echo Entertainment integrated resort at Queen’s Wharf in Brisbane, and the ASF Consortium casino project on the Gold Coast.
Jupiters Breaks Ground on new Hotel Echo Entertainment’s Jupiters Hotel & Casino in Queensland, Australia has begun construction on a new hotel at the property. The luxury 17-story hotel—due to be complete in time for the 2018 Commonwealth Games in Australia—is part of a $345 million overhaul of the property, begun after Echo won the right to redevelop Queen’s Wharf in Brisbane.
Criticism, Warnings for Baha Mar Chief Party chief: Pay the contractor and restart the project he problems continue for T Sarkis Izmirlian, and the latest hits are not even related to his Baha Mar Resort project, the stalled $3.5 billion mega-resort that is 90 percent finished and sitting idle in a dispute with the project’s Chinese contractor. Last month, after a political party official called Izmirlian, a citizen of Switzerland, Sarkis Izmirlian, CEO “anti-Bahamian,” Bahamas Imof the stalled $3.5 migration and Foreign Affairs billion Baha Mar Minister Fred Mitchell threated resort project to deport the executive. Izmirlian is the majority owner and CEO of Baha Mar Ltd., which had planned to open the mega-resort last December, de-
layed the opening to March and then delayed it indefinitely as work ground to a halt. The stoppage is over a dispute with the construction contractor, the Chinese state-owned China Construction America (CCA). Izmirlian claims the project’s delayed openings are the fault of the contractor, and stopped paying CCA. CCA halted work, and the project sits idle. Bradley Roberts, chairman of the Bahamas’ Progressive Labor Party, said in statement published by the Bahamas Tribune that Izmirlian is “anti-Bahamian,” and “obstructing” the completion of the Nassau project for his own gain. Roberts accused Izmirlian of “holding Bahamians hostage” while he “fights his battle with the contractor and tries to dodge paying his loan to the bank.” Baha Mar filed for Chapter 11 bankruptcy in a U.S. court, saying the bankruptcy protection would allow construction to start while Izmirlian arranged financing to finish the project.
Packer Quits as Crown Chairman
Australian billionaire James Packer
Melco Crown to open Cotai resort in October ames Packer has resigned his post as chairman of Crown Jprofits,Resorts in the wake of a 41 percent fall in fiscal-year net to $385 million. The company has been hard-hit by the historic decline in Macau’s once-invincible gaming industry, along with a big write-down in the value of its overseas investments, according to ABC Online. Packer is Crown’s majority shareholder. He will stay on as a member of the board and senior executive director. He says he is as committed as ever to the company’s success, and called it his “No. 1 business priority and passion.” Packer will retain his role as co-chairman of the company’s subsidiaries Melco Crown Entertainment in Asia and Alon Resort in Las Vegas. His successor in the chairman role at Crown Resorts will be Robert Rankin. 14
Global Gaming Business OCTOBER 2015
Rendering from the Boldt-Peralada bid
Chile to Award Gaming License Winning bidder will have until late 2017 to complete the new resort
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he Chilean Gaming Control Board Resolution Council is close to announcing which of two bidders will claim a gaming license in the city of Chillan, in the earthquake-prone Bio Bio region, about 250 miles from the capital of Santiago. The winner of the casino tender will be announced September 10. Marina del Sol and the ArgentinianSpanish company Boldt-Peralada have submitted proposals for the planned resort, which is expected to take two years to complete and open. The World Casino Directory reports that Marina de Sol is the leading contender. WCD also reported that Boldt-Peralada has initiated legal action, alleging the fix was in for the other company.
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NUTSHELL Las Vegas-based casino operator Full House Resorts wants to build a $650 million casino resort, American Place, near the Indianapolis International Airport. Full House would transfer half of its 1,400 slot machines and table games, licensed for its Rising Sun Casino in southeastern Indiana, to the new development. The gaming transfer would require state approval. Full House submitted the proposal in response to the Indianapolis International Airport’s Land Use Initiative, under which the Airport Authority will put several hundred acres on the market for sale or lease for non-aviation purposes. The casino would be developed at the site of a razed airport terminal and nearby parking lots no longer used by the Indianapolis Airport Authority. Democratic Kentucky House Speaker Greg Stumbo recently announced he plans to file a constitutional amendment that would establish seven casinos and dedicate the state’s share of revenues to education and shoring up the state’s public pension systems and horse-racing industry. The legislature could consider the bill during the 2016 regular session, which begins in January, to present to voters in November 2016. Horseshoe Casino Baltimore wants to expand in the city’s burgeoning Warner Street district with its own hotel. Since opening a year ago, Horseshoe has been envisioned as the springboard for a revitalization of the South Baltimore area, which city officials want to transform into an entertainment corridor stretching from the casino to M&T Bank Stadium. The city’s recently released South Baltimore Gateway Master Plan encompasses more than a dozen neighborhoods, with the Horseshoe at its heart. The Baltimore Development Corp. is also conducting a study on the potential of Warner Street, where Horseshoe Casino General Manager Chad Barnhill said he wants to see more shops, restaurants and entertainment venues open their doors. Barnhill said he’s heard from developers interested in the corridor, and he sees the Horseshoe adding more of its The Port Gamble S’Klallam Tribe of own amenities. Washington state has announced plans to add a hotel to its Point Casino, near Little Boston. The hotel, which will have a series of totem poles—including a four-story welcoming pole in front of it, with a symbol of the tribe, a bear holding an orca—will have 94 rooms and will be next to the casino and existing events center and 15-acre botanical garden. Aristocrat’s games and systems performed strongly once again in the annual Goldman Sachs Slot Survey. The Australia-based manufacturing
giant retained the top position for “most anticipated game” with its new Sons of Anarchy title. Two other Aristocrat games finished in the Top 10—Buffalo and Man of Steel—as did the Helix slot cabinet introduced last year. The company’s Oasis 360 casino management system was cited as the one that slot managers were most likely to switch to. The results were based on interviews with slot managers from 119 casinos in 27 U.S. states. The number of full-time employees in Macau’s gaming sector rose 1.3 percent year-on-year in the second quarter, but the number of dealers dropped by 2.5 percent, according to official data. During the period, there were more than 57,400 full-time employees in the industry with the number of dealers falling to 25,000. A revised tribal-state compact between California and the United Auburn tribe, operators of Thunder Valley Casino Resort, was approved last month by the legislature and Governor Jerry Brown. “I don’t see anything not to love about this thing,” declared state Senator Tom Berryhill of the Senate Governmental Organization Committee during the first day of hearings. The new pact reduces the tribe’s revenue sharing to the state’s general fund from $40 million to $15 million, but will provide more money to non-gaming tribes and residents of Placer County. Overall the tribe’s payments will be $36 million, down from $42 million. It replaces a compact negotiated in 2004. Vietnam’s Jetstar Pacific Airlines has launched a Macau-Haiphong route. The carrier also flies between Da Nang and Macau, and will begin service between Ho Chi Minh City and Macau on September 22. MGM Resorts announced the first expansion phase of the Mandalay Bay convention center is complete, adding 350,000 square feet of space. The expansion will be complete in January, which will see the convention space top 2 million square feet, at a cost of $70 million. Monopoly Millionaires’ Club will launch its second TV season from Las Vegas on September 12. The weekly syndicated lottery game show, developed by Scientific Games Productions under license from Hasbro, will air on stations owned by Tribune, Sinclair, Hearst, CBS, Gannett, Media General, Graham Holdings and others. During its 12-episode premiere run, the show gave away more than $5 million in cash and prizes to contestants and audience members and awarded two $1 million grand prizes to individuals from the Georgia Lottery and Rhode Island Lottery.
October 5-8: North American Association of State & Provincial Lotteries (NASPL) 2015 Annual Conference, Hilton Anatole, Dallas, Texas. Produced by NASPL. For more information, visit NASPL.org. October 7-9: Japan Gaming Congress 2015, Tokyo. Produced by Clarion Gaming. For more information, visit JapanGamingCongress.com. October 12-14: African Gaming Summit & Exhibition, the Emperors Palace, Johannesburg, South Africa. Produced by Eventus International. For more information, visit bigafricasummit.com. October 14-16: IMGL 2015 Autumn Conference, Lima, Peru. Organized by the International Masters of Gaming Law. For more information, visit gaminglawmasters.com.
Said It”
“There’s no debate: gaming in Ohio has become a valued community partner in Cleveland, Columbus, Cincinnati and beyond. We invite candidates to meet with voters at casinos and show their support for an economic driver in Ohio while learning about an industry that’s creating thousands of jobs beyond the Las Vegas Strip.” —American Gaming Association President and CEO Geoff Freeman, before the Republican presidential candidates’ debate in Cleveland
“To be honest, at this stage we don’t even expect—we hope. There’s no expecting anything, there’s just hoping. It’s like literally praying. It’s almost like a lottery ticket now. So, we hope.” —Lawrence Ho, Melco Crown, on the firm’s desire to be approved for 400 gaming tables at its Studio City resort in Macau, which will open in October
“Under the current situation, when the operating costs are that high, what should we do if we don’t cut manpower? Cutting human resources is the trend.” —Kwok Chi Chung, Jimei International, in response to news that the junket operator has laid off 20 employees in Macau
“The only thing they have ever developed was CityCenter, and for those of us in the United States, particularly those of us who live here in Vegas, it doesn’t need any further comments.” —Sheldon Adelson, Las Vegas Sands Corp., sneering at MGM Resorts International, his rival in Vegas and Macau
“Warning. It is very cold and most of the world’s Siberian tigers live in the area.” —Macau Daily Times, on Russia’s Primorye casino zone, which will debut in September
CALENDAR September 29-October 1: Global Gaming Expo (G2E), Sands Expo Center, Las Vegas. Produced by the American Gaming Association and Reed Exhibitions. For more information, visit GlobalGamingExpo.com.
“They
October 20-22: EiG Expo 2015, Arena Berlin, Berlin, Germany. Organized by Clarion Events. For more information, visit eigexpo.com. November 10-12: SAGSE Latin America 2015, Costa Salguero Convention Center, Buenos Aires, Argentina. Produced by Mongrafie S.A. For more information, visit Monografie/SAGSE_bsas. November 17-18: Malta iGaming Seminar (MiGS) 2015, Corinthian Hotel, St. Julian’s, Malta. Produced by MiGS Ltd. and sponsored by the Malta Gaming Authority. For more information, visit maltaigamingseminar.com. November 24-25: Balkan Entertainment & Gaming Exposition and the Eastern European Gaming Conference, Inter Expo Center, Sofia, Bulgaria. Produced by the Bulgarian Trade Association of Manufacturers and Operators in the Gaming Industry. For more information, visit BalkanGamingExpo.com.
“For some observers, the Mirage would be a more logical candidate for sale than other properties. I don’t view it that way at all.” —Jim Murren, MGM Resorts International CEO, insisting that the Mirage is not for sale
“The millions in prizes won’t be coming out of investors’ pockets. It will come from the pool filled with buckets of money lost to the house. And so the leagues and their TV networks are now in the business of not only urging sports fans to bet—every day, too—but also to lose their money so fantasy league backers can rake their cut of the action.” —Phil Mushnick, New York Post columnist in a column on daily fantasy sports
OCTOBER 2015 www.ggbmagazine.com
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AMERICAN GAMING ASSOCIATION
Play it Safe Powerful partners can help to end illegal gambling in the United States By Geoff Freeman, President & CEO, American Gaming Association
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he “Stop Illegal GamblingPlay it Safe” initiative, which aims to combat illegal gambling operations around the country and distinguishes our highly regulated industry from the dangers of illegal gambling, has been met with open arms. We have received overwhelming feedback and press that has resulted in meaningful partnerships and more opportunities to educate the public and policymakers about the dangers of illegal gambling. Gaming has grown, matured and prospered as a result of its lawful, regulated status. Legal gaming now supports more than 1.7 million American jobs and generates $38 billion in tax revenues to local, state and federal governments. Our industry is far different from the criminal networks that rely on illegal gambling to fund violent crimes and drug and human trafficking, and this initiative seeks to distinguish those vast differences. The AGA is focusing on four key areas of illegal gambling: illegal sports betting, black market machines, internet sweepstakes cafes and illegal online betting. One of the partnerships that I am most proud of is the formation of our Illegal Gambling Advisory Board. We brought together some of the brightest, most experienced professionals from different backgrounds to tackle this multibillion-dollar criminal enterprise. Members of the board will provide advice regarding industry efforts to develop actionable tools for law enforcement and to reduce the demand through public awareness; guide partnerships with law enforcement at the local, state, federal and international levels; and provide strategies and perspective on necessary steps to plug existing holes in enforcement efforts.
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The board is comprised of Tim Murphy (chair), former deputy director of the Federal Bureau of Investigation; Ed Davis, former Boston police commissioner; James Dinkins, former executive associate director at Immigration and Customs Enforcement (ICE) Homeland Security Investigations; J.B. Van Hollen, former Wisconsin state attorney general, U.S. attorney and district attorney; and Bill Young, former Clark County sheriff and head of the Las Vegas Metro Police Department, current senior vice president of compliance and security at Station Casinos.
“
Global Gaming Business OCTOBER 2015
The public needs to be warned about illegal gambling. They need to be protected, and illegal operations need to be shut down. The AGA is committed to working with law enforcement and elected officials to expose illegal gambling, protect consumers and restore the revenue and jobs lost to shady, predatory operators.
”
The AGA also has continued to work with attorneys general from around the country. Recently, the National Association of Attorneys General (NAAG) established a “Gaming Committee,” which will be cochaired by Arizona Attorney General Mark Brnovich and Mississippi Attorney General Jim Hood. Nevada Attorney General Adam Laxalt will also serve as a member of the committee. This committee will focus on illegal gambling, as well as other emerging issues that may affect the gaming industry. The AGA will play an important role in assisting the committee as it tackles these issues. In addition, local law enforcement plays an important role in stopping illegal gambling. This past month, the AGA spoke at the National Sheriffs Association’s annual conference in Baltimore. Addressing the Government Affairs Committee, we were joined by Michael Botticelli, director of national drug control policy, and other representatives from the U.S. Department of Justice. Lastly, to extend the dialogue about illegal gambling, the AGA served on a panel with the FBI at the Conference of Western Attorneys General in July. Moderated by Attorney General Brnovich, the panel addressed more than 20 attorneys general, many who have gaming in their states. The public needs to be warned about illegal gambling. They need to be protected, and illegal operations need to be shut down. The AGA is committed to working with law enforcement and elected officials to expose illegal gambling, protect consumers and restore the revenue and jobs lost to shady, predatory operators. While this initiative is still young, the AGA will continue to work collaboratively with law enforcement, elected officials and gaming companies across the country to ensure that our industry is not tarnished by unregulated illegal gambling operations.
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FANTINI’S FINANCE
The Party’s Over Beware of government policies that kill the goose and the golden egg
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hen Macau was riding high and investors saw blue skies forever, we cautioned that government policies could end the giddy party. Today, everyone knows that the biggest risk to Macau is government policy. But the risk isn’t just to Macau, it’s to the rest of the Far East. So, let us warn again: do not believe that casino gambling can grow to the sky in Korea, Philippines, Southeast Asia, Australia or in frigid Vladivostok in Russia. A lot of money is being invested in those places under the assumption that they can poach Chinese gamblers. Those investing on China’s rim support their claims by citing double-digit gains in Chinese visitation to Korea, Crown Resorts recently growing its high-end Asian play more than 40 percent at its Australian casinos, and rosy projections of outbound Chinese tourism accompanied by descriptions of them being the biggest spenders of all international travelers. But it isn’t so easy as building resorts to capture gamblers who have quit Macau. Consider these warning signs: • The Chinese government has stated clearly that it is not going to let other countries simply lure gamblers who now avoid Macau. For evidence, look at the June arrest of 14 Korean casino executives in China charged with marketing directly to Chinese players on Chinese soil. • The bloom already might be off the rose. Melco Crown reported that initial high-end Asian gambling was lower than expected at its new Philippines casino. It’s very early for that property and things will change, but a new casino underperforming expectations is not a positive sign. The other new mega-resorts in Manila’s Entertainment City are reporting early results below expectations, too. Paradise Co. in Korea reported a 31 percent drop in Chinese VIP play in the second quarter, more than twice the 12 percent decline in other VIP play. At Genting Singapore, a drop in highend play was largely responsible for a 28 percent second-quarter decline in gaming revenue. Even properties as far away as River Rock in Vancouver, British Columbia, reported lower high18
Global Gaming Business OCTOBER 2015
By Frank Fantini
end Asian play. • The much-touted diversification into tourist destinations might not make up for losing big gamblers. Genting Singapore is a case in point. Visitation to its Resorts World Singapore grew 9 percent in the second quarter to more than 18,000 persons a day, yet earnings sank because pure tourism just doesn’t generate the same profits as gambling. Macau visitation has held up much better than gaming revenues, but profits have fallen, again because it takes a lot of tourists to make up for losing even one guy blowing a million bucks at a baccarat table. • What happens in China stays in China. The Chinese government right now has bigger concerns than Macau or foreign casinos. It has to figure out how to get its economy moving again. One attempted trick is the recent devaluation of the yuan. Analyst Jamie Soo of Daiwa says the devaluation will hit Macau VIP play hard. He forecasts a 20 percent revenue decline that will translate into a 9 percent EBITDA hit. He also expects mass-market play to fall 8 percent to 10 percent. Further, the economic woes will make gambling in Macau less appealing to many, Soo reasons. • Policies of neighboring countries matter, too. Building casino resorts in places like Vietnam and South Korea is a gamble that laws will be changed to allow locals to play because, if not changed, those casinos are unlikely to provide an adequate return on investment. • It’s always tomorrow. News that casino legislation will not be considered by Japan’s Diet this year is no surprise. As we’ve stated many times, the politics of Japan are a lot more complicated than passing a bill allowing foreigners to come in and make billions of dollars off Japanese citizens. Likewise, fresh efforts at legalizing casinos in Thailand are not necessarily cause to celebrate. This pony has been ridden many times before and has never made the finish line. Someday, Japan and Thailand might legalize
casinos. And that someday might be soon. But I wouldn’t put a lot of money on it.
BACK TO THE GOOD ‘OL USA Meanwhile, U.S. regional casinos are riding a building wave of prosperity as Americans once again spend on entertainment. Almost all regional casino companies are worthy of examination for investment. Penn National has its much-touted growth pipeline. Boyd has a kicker in the rebound in the Las Vegas locals market. Pinnacle’s kicker is its pending REIT deal with Gaming and Leisure Properties. Isle of Capri has been growing revenues impressively as CEO Virginia McDowell has ISLE performing more like a growth company than a mature operator. Two of our favorites are small companies that fly under the radar screens of most investors: Monarch Casino and Eldorado Resorts. What these two companies have in common are control by the founding families, flagship operations in Reno and a focus on operating efficiency. We like companies that are run by founders or controlled by their families. Their interests almost always are aligned with investors because they are the biggest investors, and not because of stock options, but because it’s their company. Reno is an advantage because the Biggest Little City is also a 21st century city as high-tech companies cross Sierra Nevada from Silicon Valley and discover a low-cost, business-friendly environment in an outdoors wonderland. Finally, there is operating efficiency. For Eldorado, that means improving margins at the MTR Gaming properties it has acquired, thus increasing profits even if revenues don’t rise. For Monarch, that means its under-development destination-quality resort in Black Hawk, Colorado, might generate revenues that are transformational. Frank Fantini is the editor and publisher of Fantini’s Gaming Report. A free 30-day trial subscription is available by calling toll free: 1-866-683-4357 or online at www.gaminginvestments.com.
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$ Revenue
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A report from the main gaming suppliers’ association links
declining revenues to rising slot hold
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By James Rutherford
gaming sector reported similar trends (in handle and win).” lot machine replacement sales are in the doldrums in the United They track this back to the early ’90s, when the industry’s dramatic jurisStates, and have been for a while. Slot manufacturers believe it’s dictional expansion would have factored into handle in a big way, although the time for a sit-down with casino operators about solutions, and report makes no mention of this. they’ve let it be known publicly that loosening up on hold per“On the other hand,” it continues, “the point at which the economic clicentages would, in their view, be a good place to start. mate shifted from expansion to contraction, the slot industry followed suit. The broad silence that has followed suggests the casinos might beg to differ. More specifically, total slot handle and win contracted for the first time in Says Mark Birtha, general manager of Hard Rock Rocksino in northeastern 2008 (the first full year of the Great Recession). This appears to be the inflecOhio, “There’s the manufacturers’ side and the operators’ side, and there are tion point for slot operators overall.” things that are important to them that are very different.” It doesn’t stop there. “It is important to understand how slot win has This gulf, if it can be called such, must be widening in the midst of these trended relative to personal incomes,” it goes on. “Throughout the majority of leaner times for the industry overall, for the Association of Gaming Equipment the 1990s, slot revenue expanded at a faster pace than overall personal inManufacturers to bring out a report last month that combines historical revenue and slot hold trends in 16 states with a lively series of quotes from experts within and outside the Slot Handle, Slot Win and Slot Hold Percentage industry, who describe an arc of re15 Selected States (2007 = 100) bellion on the part of consumers against today’s tighter machines, which they say have become more expensive and less fun to play. The report was released to publicize the survey that arrived at those trends, which the association commissioned in 2014 from Applied Analysis, an economic research and consulting firm based in Las Vegas. What Applied Analysis had found was pretty much what you’d expect—that slot handle and slot win, respectively the aggregate in dollar terms of what players wagered in those 16 states and what they lost to the house, tended to mirror the fortunes of the wider economy: “During periods of notable economic expansions (mid-2000s), the Source: Applied Analysis, “Slot Market Assessment, Analysis of Industry Data” 20
Global Gaming Business OCTOBER 2015
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North America New Unit Forecast
comes, suggesting a higher share of consumers’ wallets were being dedicated to gaming activities. “These trends moderated somewhat through the 2001-to-2007 time frame as gaming revenue growth more closely approximated gains in personal income. From 2008 forward, there has been a clear and consistent trend that consumers are simply spending less of their earnings on slot activities.” Operators and suppliers know full well that there are a lot of reasons for this, holds generally having ratcheted up to compensate for falling revenues and increasing competition being but one of them. And AGEM acknowledges as much. But for the association’s purposes, the survey did examine trends in RTP in the selected states, focusing on the years from 2004 to 2014, when 10 of the 16 states reported increases in hold percentage and seven reported declines in win. From this, the association calculated a “blended” increase in hold of 14.5 percent over the decade against a corresponding increase in slot revenue of only 1.1 percent. Applied Analysis’ conclusion was this: “While statistical correlations on a state-by-state basis vary due to any number of factors, the broader, aggregate trends would suggest a rising hold percentage has not translated into incremental gaming revenue for operators during the post-recession era. In fact, they very well may be contributing to its decline.” Of course, you’d be hard-pressed to find a granny on any slot floor in America who wouldn’t agree, and, not surprisingly, the follow-up report AGEM released in August duly made headlines nationwide. But to be fair to both sides of the divide (and the manufacturers are, after all, the ones who brought to market the technologies that made rising holds possible), the survey is hardly conclusive. “We make no representations as to the adequacy of these procedures for all your purposes,” Applied Analysis added as a cautionary note when it submitted its findings to AGEM back in February. Or as one casino executive put it, “The report was somewhat illuminating but by the same token somewhat one-sided.” Actually, a closer read of it shows that gains in average annual hold slowed in the years after the recession hit. In 2013, they even declined. Percentage-wise, the largest average increases occurred from 2001 to 2007, a period that coincided with the advent of the cashless technologies that made viable the low-denomination, multi-line Australian-style games that experts agree are the greatest single contributor to today’s higher holds. “The floors have been converted,” says Claudia Winkler, an industry veteran specializing in gaming and hospitality systems and IT. “Where you used to have a lot of choice of denom, you walk onto the floor now and they’re all penny games. Pennies have raised the overall floor hold substantially.” This was also when leased games came to the fore. “Where there is more of a (revenue) participation element in the form of licensed games,” Birtha says, “you’re paying fees to the license-holder and fees to the manufacturer, so these games tend to come out with higher hold percentages.” Industry consultant Frank Neborsky, who was vice president of slot operations at Mohegan Sun during the salad days of the mid-’90s, says,
Source: Union Gaming Research
Las Vegas Strip’s Installed Base
“When you talk about the player experience, that takes in a lot of things besides hold percentage. One thing I find interesting about the report is it didn’t mention anything about the potential factors influencing that. How did expenses change, marketing costs, promotions, the other perks that operators were giving to patrons for their loyalty? In other words, what was the true value of what that hold may or may not be affecting?” Operators will tell you that certainly it hasn’t been the gambling alone. Time and age are steadily eroding the core base of machine players. The players rising to take their place generally don’t find slots all that compelling. They’re having to compete against the backdrop of a society that provides consumers with more alternatives for their discretionary spending than at any period in history. “Guests are more focused on their entertainment dollar,” says Birtha. “If it was purely about winning at the game, there wouldn’t be anything but video poker out there. But clearly, that isn’t what happened.” Nowhere is this more evident than on the Las Vegas Strip, which has evolved to a point where gaming constitutes well under 40 percent of total revenues, and slot inventories are down 15 percent from their peak, even as visitation hits alltime highs. Since 2006, handle has fallen at a rate of 3 percent per year. It’s down 22 percent from where it stood at its highest. In an August client note, investment brokerage Union Gaming Research said, OCTOBER 2015 www.ggbmagazine.com
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“Gaming equipment manufacturers and industry pundits suggest that Las Vegas operators have driven down slot demand by focusing on non-gaming customers, and that this trend has begun to spread to more U.S. regional markets. Our frequent conversations with regional property managers often suggest that cap-ex allocations and wish-list items are for new F&B outlets, meeting and retail spaces and more hotel rooms. Very few, if any, operators discuss the need for more gaming machines.” Neborsky says, “What we consider a slot machine now, though it’s been advanced through technology, through better visuals, the emotional connection, it is still the same. You put money in, spin the reels, you win or lose. In essence the game is the same.” And it has to change, he says: “If you look at the demographic that now plays slots, when they were in their 20s they weren’t necessarily inundated with technology. And you look at people in their 20s and 30s now, the things they do for recreation, if they aren’t gambling it’s because they’re on video games. “On Candy Crush, Farmville, those games, they’re spending money, but not to win money, and they don’t play slots. The games have to evolve into a technology that isn’t necessarily a skill machine but something that is as much skill-based as randomly based.” This is the conversation casinos want to have, according to Birtha. “It’s the million-dollar question. What do millennials look like and what do they want? How do we create slot experiences that meet the needs and wants of this younger generation? And how that value proposition translates to revenue.” AGEM’s thinking in commissioning the report is guided by the same desire, said Tom Jingoli, senior vice president of Konami Gaming and chairman of the association. “This is meant as a talking piece and not a broad brush stroke for the gaming industry.” Birtha, for one, welcomes the opportunity. “Both sides of the slot equation are looking for the same outcome. Value is the key for everybody. Our objectives are the same—a better product on our floors that our guests enjoy. It needs to be a conversation about what players want and how we support that. We’ll benefit from all of this equally.”
James Rutherford is a freelance writer based in the Atlantic City area.
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Global Gaming Business OCTOBER 2015
Slot Futures As the age approaches of millennials in casinos, operators and manufactures look to skill and interactive play By James Rutherford
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ew Jersey approved regulations authorizing skill-based casino games in February, offering hope to Atlantic City’s hard-pressed operators that a free-throw basketball competition sponsored by Atlantic City’s Borgata Hotel Casino & Spa to coincide with March Madness was the signal for the start of a new era. It was around the same time that a bill was signed into law in Nevada authorizing the state Gaming Control Board to craft new regulatory language to allow slot machines to incorporate a level of skill and/or a combination of skill and luck. The board has approved a recommendation to set this process in motion, and the Nevada Gaming Commission was expected in September to give the OK. Some say arcade-style EGMs could be in the Silver State’s casinos as early as next year. Current thinking is these will debut as platforms that invest slot games with bonusing features incorporating video-game elements. The math would set base game payout rates along normal lines (e.g., 88-90 percent) that would increase according to the player’s skill, resulting in median hold rates somewhere between 5 percent and 6 percent, simi-
lar to or slightly below current average U.S. holds. “Major slot manufacturers have been relatively quiet about what they might have in their pipelines to meet this potential new category, but several smaller technology companies are hard at work,” Union Gaming Research said in an August client note. “We expect some of these smaller companies that are focused solely on skill-based game development and innovation to be primary targets for major equipment manufacturers as the idea advances.”
ETGs Factoring out baccarat, evidence suggests it’s that elusive younger demographic providing much of the traction behind a recent surge in table game revenues in the U.S. This is likely because they find the experience more satisfying than traditional slot machines for delivering the communal and competitive interaction they seek. It’s a market that could get a lot bigger if not for certain elements that have always worked to hold back growth in the pit: things like the learning curves required by many of the games, higher bet minimums, and the intimidation factor associ-
Facebook Casino-Style Games Ranking by MAU July 2015
Š 2015, AGS, LLC. All Rights Reserved. AGS and American Gaming Systems are registered trademarks of AGS, LLC.
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Recent Interactive
M&A Transactions AMAYA
Rational Group (PokerStars, Full Tilt Poker: 85 million registered users) $4.9 billion
ARISTOCRAT GameAccount Network Product Madness
BALLY Dragonplay (social casino games) $100 million ChiliGaming (social games/ Europe-focused B2B online gaming platform)
CAESARS INTERACTIVE ENTERTAINMENT Playtika (Slotomania free-play social casino) $125 million (est.) Buffalo Studios (Bingo Blitz free-play) $105 million Pacific Interactive (House of Fun social casino-themed games) $90 million (est.)
CHURCHILL DOWNS Big Fish Games (social gaming site expanding onto Facebook) $885 million
IGT DoubleDown (social gaming expanded to real-money wagering: Facebook and other platforms) $500 million
WMS Jadestone Group (online gaming solutions) Phantom EFX (casino game developer for social media)
Source: Union Gaming Research
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Global Gaming Business OCTOBER 2015
Slot Futures ated with some of them. Which is where electronic table games come in—a “bridge,” as Union Gaming terms it, “allowing for lower bets and a more comfortable learning environment for new table game players.” That is also why North American operators are finally getting wise to what their counterparts in Europe, Latin America and Asia have long been aware of: ETGs are an ideal tool in certain circumstances for combining labor savings and floor-space optimization with an experience that broadens the appeal of both live tables and machine games both. In jurisdictions where the demand for them is growing, the task for slot-makers looking to compete in the space with established suppliers, many of them foreign-based, is how to minimize the potential impact on slot R&D budgets and slot volumes. Likewise, there are concerns among operators about their potential to siphon off live-table drop. There could be regulatory hurdles as well as the legal and tax implications of an automated or dealer-assisted platform that could be quite different depending on the state. Proponents maintain that ETGs thrive by attracting incremental spend from existing players and lure new ones by effectively crossing the generational divide that is posing such a challenge for traditional slots. They point to Asia, and to Macau in particular, where LT Game’s patented live-dealer multi-game format has done tremendous numbers. They suggest also that manufacturers worried about losing any edge from their proprietary technologies might want to look at established developers for examples of how to leverage IP through bonusing and progressive jackpot solutions customized for driving up bet size and frequency without disturbing traditional table game maths. Looking at the agreement IGT struck with LT Game last year to co-market and distribute their games in Asia and North America certainly would indicate that IGT has bought into some of these arguments.
PC, Mobile It’s been nearly five years of disappointment for operators and games and technology providers who had hoped to see a rapid take-up of real-money gambling on the internet in the wake of the U.S. Justice Department’s more liberal interpretation of the federal Wire Act. That doesn’t mean there isn’t plenty of growth to be gleaned from the web in sectors such as casual gaming, which has been a winner for several land-based manufacturers on Facebook
and other social media platforms. This has driven a sizable amount of M&A on the part of major names on the supplier side—IGT, Bally, Aristocrat and WMS among them—and at the operations end, notably on the part of Caesars Entertainment and Churchill Downs. Citing statistics compiled by social gaming tracker NewZoom, Union Gaming pegs the “addressable market” for providers in the PC, social media and mobile sectors at $35 billion, and that excludes console games and the very large multiplayer segment of online games for PC. However, “to compete and grow, social media strategies must adapt and roll with the times,” the brokerage says. This means content adapted for both Facebook and Apple iOS (and Android for providers looking to extend their reach into international markets) and being in the “right segment” with a “diverse platform.” In essence, it means going mobile. Consider that only 13 percent of Facebook’s 1.44 billion monthly active users (MAUs) in the first quarter were PConly users, while 40 percent were mobile-only and 86 percent used a combination of both. That’s a significant shift from even two years ago, a period during which PC-only users have declined 46 percent. In May 2013, iPhone and iPad game revenues for Playtika, DoubleDown, BigFish, Zynga and GSN were roughly the same. Two years later, iPad revenues were 168 percent higher. Content innovation will be another key. Up to now, it’s been relatively easy for slot-makers to adapt their existing portfolios for social play via their remote game servers. This makes them profitable. The games also tend to generate higher yields. But measured by daily and monthly active users, they’re consistently outperformed by non-casino social game offerings. “For manufacturers to maintain growth, they must expand beyond ported slot content,” says UGR. “This will take capital.” And marketing in these segments is an obvious obstacle when you’re looking to go up against the likes of Clash of Clans and Bomb Beach, which command prime-time national marketing fees. “Although it’s difficult to suggest that gaming manufacturers can take on the likes of Candy Crush, the industry does employ a considerable amount of game development talent that must meet the far more stringent standards of regulators and operators,” UGR says. “As such, there seems to be an opportunity for manufacturers to make inroads into the casual corner of the social gaming industry.”
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All Things Gaming Scientific Games brings the top talent, technology and brands together to target dominance of the supply sector By Frank Legato
“Great companies are made up of great people.” —Gavin Isaacs, CEO, Scientific Games
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Global Gaming Business OCTOBER 2015
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hen it comes to his profession, Gavin Isaacs has paved a successful path. Isaacs, the president and chief executive officer of end-to-end gaming supplier Scientific Games, held top executive posts at Aristocrat, Bally and SHFL entertainment, helping guide each company into new eras. Two of those companies, along with the former WMS Gaming of Chicago and Barcrest of England, now form the most diverse supplier in the history of the business. Isaacs is now steering Scientific Games through its new era, and the executive clearly is at the top of his game. If you ask him, though, he is at the top of his game because he has surrounded himself with executives and employees who are at the top of their respective games as well. “Great companies are made up of great people,” Isaacs says. “These (former) companies were successful because they had great people. If you’ve got the right people in place, then let them get on and build the business.” Building the new business for Scientific Games has involved carefully arranging the multiple disciplines inherited over the past two years since Scientific Games acquired top-five slot manufacturers WMS Gaming and Bally Technologies—the latter of which, in turn, had already acquired SHFL. Isaacs was intimately familiar with two of those three former companies, having served as chief operating officer of Bally and CEO of SHFL. Isaacs, who had left Bally to take the helm at SHFL, joined Scientific Games while the company was in the process of acquiring WMS. “When I joined Scientific Games, we were well into the integration of WMS,” he recalls, “and Bally was well into the great integration of SHFL. As our integration teams worked together, we learned from what went well and what we could have done differently in past integrations to ensure the success of the Scientific Games-Bally combination.” Ultimately, the successful integration of former companies that led to this year’s dominant Scientific Games G2E display was achieved, as Isaacs
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says, thanks to the people he put in place. The merged company would be divided into three divisions—Gaming, Lottery, and Interactive—with a veteran chief executive in charge of each division. For the Gaming Division, that chief would be Derik Mooberry, the longtime Bally executive who had been part of the team that had successfully managed the integration of SHFL into Bally just a year earlier. For Lottery, it would be Jim Kennedy, a lottery pro with a pedigree stretching back to the earliest days of the North American state and provincial lottery industry. The chief executive of the Interactive Division is newly appointed Barry Cottle, former executive vice president of social-gaming company Zynga and chief executive of EA Interactive, whose expertise in mobile and social disciplines will carry the company forward. He is assisted by President-Interactive Jordan Levin, who had been managing director and COO of the highly regarded Williams Interactive prior to the Scientific Games merger. While Isaacs interacts with the heads of his divisions regularly, he also relies on Dan Savage, the former Bally marketing VP who serves as chief administrative officer, and Scott Schweinfurth, the longtime WMS executive who serves as executive vice president and chief financial officer, to keep track of day-to-day operations that are more diverse than the industry has ever seen. “Dan is running integration, running IT, running marketing and communications, and doing a phenomenal job,” says Isaacs. “He sits to my right and Scott’s on my left, so we keep a very good finger on the pulse.” As far as the all-important Gaming Division—which, ultimately, interacts with and influences most aspects of the other two divisions—the decision was made early on to preserve the legendary brands—Bally, Barcrest, Shuffle Master and WMS—that make up the core of Scientific Games’ product library. “You don’t pay premiums for companies to shut down their strengths,” Isaacs says. “As we were strategizing on how we were going to operate these companies, we determined that each of those brands had particular strengths in particular markets.”
ment center in the U.K. However, the way that system is managed has remained essentially unchanged, says Mooberry. “The studio system hasn’t fundamentally changed,” he says. “There were some very slight differences between how WMS worked and how Bally worked and how even SHFL worked, but first and foremost, our goal is to preserve the brand identities.” Maintaining the global strategy for game design is Allon Englman, the merged company’s vice president and design chief. “Under that structure, there are studios that work on specific branded content,” Mooberry explains. “So, the WMS teams continue to work on WMS-related content, Bally teams work on Bally-related content. And we did that for a reason—because what we’ve found in all of our market research is that different players like different styles of games, and in one part of the U.S. or world, WMS games might be wildly popular, while somewhere else, it might be Bally.” He adds that with R&D in Las Vegas, Reno, India, China, Phoenix, San Diego, Australia and elsewhere, game design efforts can be localized to each market. “We’re literally developing machine-related content all around the world,” he says. “We often have to tweak the content to meet each market’s specific needs, and that big portfolio and large number of studios allows us to do that.” Game design, he adds, is driven by research—player focus groups, feedback from operators, close examination of performance in the field. Says Mooberry, “I’d like to say all our games are hits, but they’re not, so we try to look at the things that cause a game to be successful. That’s the consumer element of it, but there’s a whole customer element too—the people that make the buying decisions. We meet with different groups of operators around the world regularly. We call them customer advisory boards. “We ask customers to come in and give us feedback on our products, our competitors’ products, what’s working, what’s not working. We take that feedback, digest it along with all the end-consumer feedback and market research we do, and the output of that really determines a plan for us.” How does Mooberry manage this mind-boggling amount of research? “We manage it all because we’ve got great people,” he says. “And I’ve always said the secret to all of this starts with great people who make great products. And if we take care of both of those things, we ultimately will be successful in the long run. And I’m blessed to have a fantastic team.” (In case you’re keeping score, that’s 5,000 employees in the Gaming Division, out of 8,200 total employees at Scientific Games.) Mooberry says every member of his team is excited to bring all that content together for the first time at G2E 2015. “This is the Super Bowl for us,” he says. “It’s the biggest event of the year for us to showcase our products, so there’s no shortage of excitement around here.” The Scientific Games booth this year is 26,000 square feet and about 60 yards long. “When you think about the enormous amount of product that we have to show, just in machines alone—the different premium machines, for-sale machines, specialty machines in Class II and lottery, electronic tables, our shuffler products, our proprietary table games, our systems area—it’s amazing.” The display will include a full interactive area and an “Innovation Lounge” where the company will display the latest technological advances coming in the near future. That’s the annual showcase of the company’s Innovation Lab (“i-Lab”), begun under Bally Technologies to seek out emerging technologies in other industries that can be applied to gaming. With the newly merged company, Scientific Games is taking those efforts
The decision was made early on to preserve the legendary brands—— Bally, WMS, Shuffle Master and Barcrest——that make up the core of Scientific Games’ product library.
Gaming Solutions The brands, formats and casino-floor solutions going forward are the purview of Mooberry, who, as senior vice president of games at Bally Technologies, made the most of the ubiquitous Bally brand while ushering in Shuffle Master slot and table-game brands. The strategy going forward is two-pronged—work toward a common platform while preserving the legendary brands of the former companies. “We remain laser-focused on running the business and helping our customers find value out of all the solutions that we provide,” says Mooberry. “Our mission statement is to empower our customers by creating the world’s best gaming and lottery experiences. So, that’s a collection of obviously different products across different lines.” “It’s interesting that all of the former companies were looking for new platforms and new operating systems,” adds Isaacs. “So, you use that as a leverage point, and say, ‘We’re going to have one operating system going forward,’ while preserving each of the brands.” The research and development culture that was a hallmark of each of the former companies will be maintained and nurtured within the new Scientific Games with more than 700 employees focused on Game Development and over 40 percent of Scientific Games’ workforce directly involved in innovation. The collection of more than 40 game design studios that was maintained by the legacy Bally Technologies is now augmented with the former WMS R&D center in Chicago, former SHFL facilities in Australia, and the Barcrest develop-
OCTOBER 2015 www.ggbmagazine.com
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All Things Gaming
“When you think about the enormous amount of product that we have to show, just in machines alone——the different premium machines, for-sale machines, specialty machines in Class II and lottery, electronic tables, our shuffler products, our proprietary table games, our systems area——it’s amazing.” —Derik Mooberry, Group Chief Executive, Gaming, Scientific Games
beyond slot games. “From an innovation perspective, our i-Lab efforts have increased by a fairly large magnitude, because the company’s much bigger,” Mooberry says. “At Bally, we were only involved in gaming. Now, we focus on the online space, the interactive space… We’re working with our lottery teams as well on how to bring cutting-edge innovation to that segment.”
Lottery Futures The Lottery Division, of course, was the earliest element built into the DNA of Scientific Games, which was a leading vendor to state and provincial lotteries back when Williams was still a pinball company and Bally Manufacturing was supplying electro-mechanical slot machines to casino operators who had yet to discover the values of the microchip in slot gaming. Jim Kennedy, the company’s lottery chief, has been in the lottery business for three decades—he joined Scientific Games in 1985. Back then, the legacy Bally Manufacturing was in a convergence of its own—not with lotteries, but incorporating everything from health clubs to yachts to casino operations with the slot machine business. “I love the irony of it coming full-circle and seeing Scientific Games winding up purchasing Bally,” he says. By the time that happened, Scientific Games had been one of the leaders in supplying the lottery business for decades. He says the convergence of the company’s lottery business with the casino business and its brands, Bally, Barcrest, Shuffle Master and WMS, reveals the scale of the markets and contacts the lottery side instantly afforded the gaming side, and vice versa. “Our focus is always on the consumer,” Kennedy says, “and we follow the consumer back into the ecosystem. You lead with the consumer, and you look at how your scale can benefit your lottery customers. And the scale is really important, because most lotteries are hundreds-of-millions to billion-dollar businesses around the world. So, you have to have sophisticated, scalable solutions. What the merger gives us is a much deeper research platform, which we’ve already exploited. We did that when we bought WMS.” He adds that Scientific Games’ Lottery Division has already benefited from the extensive R&D efforts of the Gaming Division. “We’ve already seen the benefit come out of research, and how we use research to do R&D. We’ve already seen it with our Innovation Lab group, which is our advanced R&D group. Then of course, add that core competency that we bring on the lottery 28
Global Gaming Business OCTOBER 2015
side to the party, which is a deep understanding of local jurisdictional opportunities and constraints.” As far as the creation of new lottery products, Kennedy comments that the brand emphasis of both Bally and WMS legacy efforts fits right in with what Scientific Games has always done. “On the lottery side, Scientific Games has always been a market leader in licensing and branding,” he says. “When it comes to the muscle memory of great execution around brands, we’re there. And now, with the integration of Bally-owned and WMS-owned brands that we’re going through right now—something like Hot Shot or Gold Fish would be examples of Bally or WMS content we’re looking at—we work through our research group, and we test what consumers like, and see how to execute that on a scratch ticket or expand that using an interactive second-chance drawing platform. “Honestly, it really is all about keeping the consumer’s experience in mind. The casino industry brings hundreds of new games to market every year. In lottery, we’re in the business of bringing thousands of new games to market every year, so we have a really deep appreciation of how having a lot of choices makes sense to the consumer.” Moving forward, Kennedy says his division will closely examine new online areas, which he notes have been part of the lottery business with online sales worldwide for years. “We’ve been doing internet deployment in Europe for a decade,” he says. “So, it’s not just the technology; it’s the actual learning curve as well. How do you separate the myth from the facts? And the myth is, if you build it they will come. The fact is, you’ve got to have a compelling reason for the consumer to weave across multiple platforms. “We’ve got around 600 websites for lotteries, and we have more apps out there than any other lottery company in the United States.” As with the Gaming Division and VLTs in U.S. and European jurisdictions, online developments will be worked out in collaboration with what is perhaps the most future-focused division of Scientific Games, SG Interactive.
Interactive Channels The former Bally Technologies and WMS Gaming spent years developing strong interactive divisions, from the Bally Mobile platform and multi-channel distribution in online and social channels to Williams Interactive’s
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All Things Gaming
“This is a great group of talented and passionate individuals who are also a lot of fun. And, they have already achieved great success——this is not a turnaround situation. There is great momentum here.”
Play4Fun white-label social application. Moving the division forward under Scientific Games will be Cottle, the new chief executive of interactive who joined the company in the late —Barry Cottle, Chief Executive, Interactive, Scientific Games summer. Cottle’s experience at Zynga and EA Mobile brings unique abilities in the mobile and social world into which Scientific Games forges ahead. “Between Zynga and EA, I have been working in social/mobile games for the North America and elsewhere. past eight years, and if you add in Palm Handheld and my startup company, it’s For his part, Cottle appreciates all the tools and talent at his disposal as he been much longer than that,” Cottle says. moves SG Interactive forward. “In that time, I have helped scale organizations and build mobile/social experi“This is a great group of talented and passionate individuals who are also a ences with great brands in the face of a very dynamic and challenging market, inlot of fun,” he says. “And, they have already achieved great success—this is not a cluding managing through several disruptive technologies and business models, turnaround situation. There is great momentum here. With the brands that we from feature phones to smart phones and iPads, and from paid games on carrier now have through the recent acquisitions, we are set up for strong future success. decks to free-to-play games distributed across Facebook and iTunes. This space “As with any business, it comes down to understanding what the consumer evolves very quickly.” wants—their core motivations—and delivering a compelling and unique experiAt Scientific Games, Cottle has something of a head start in working with ence that delivers on that. In a social casino, consumers want an authentic Las Levin, who guided Williams Interactive in becoming a leader in the interactive Vegas experience that they can play/share. And with Hit It Rich, Wizard of Oz gaming space. and other innovations within poker, we have been able to deliver on that.” “Jordan and I will work together to lead the organization,” Cottle says. “I will focus primarily on product strategy, consumer and marketing. Jordan will drive our Game Futures day-to-day operations and management. We have a great relationship, and we will In the end, Isaacs sits at the helm of a company that will both guide and benefit partner closely.” from what the future holds for the gaming industry. Part of that is the effort to Levin said the partnership begins with very strong products in the interactive develop new games for the emerging millennials. For example, Scientific Games space from both legacy companies. “The combination’s actually quite complemen- is one of the vendors working with regulatory officials in New Jersey, Nevada tary,” he says. “The SG strengths were the Bally weaknesses, and the Bally strengths and elsewhere to develop rules for skill-based gaming. were the SG weaknesses, so everything coincidentally snapped into place really well “We’ve got a group of resources that are focusing on skill-based games,” across all the different groups.” Mooberry says. “In fact, one of my developers has been assisting in the crafting of the He offers social gaming as a good example. “Bally had only just gotten into so- regulations, in terms of the mathematics on skill-based games, and how it will work.” cial casino business through purchase of Dragonplay in mid-2014,” says Levin. Mooberry had a preliminary education in the process a few years ago when “Scientific Games, through WMS, had gotten into the business as one of the earliBally delivered the Pong video slot game, and innovations like All That Jazz, est entrants in 2012. Dragonplay is strong on Android. Scientific Games is stronger which had the player using the iDeck interface to play along with music. “We on Facebook and iOS. certainly think skill is an element that will make the millennials a little more ex“From a content perspective, when you take a step back and look at it, I believe cited about gaming,” he says. we now have the strongest overall interactive content offering in the world. And I “I think the casino will evolve,” adds Isaacs. “I think there will always be would bet that if you talked to Derik (Mooberry, Gaming Division chief), he gaming, and you’re seeing different resort experiences. If you listen to some, would say the same thing about land-based gaming as well.” (He does.) gaming’s finished—no one’s spending money on gaming floors anymore. But at Bally’s interactive business had already “done quite a bit of heavy lifting” for the a recent meeting at the premises of one of our Washington-based customers, we new SG Interactive, through the development of a Bally Mobile Concierge busiwalked the floor on a Tuesday night with our head of HR, whose background is ness. “We were able to snap in some of our solutions on top of that platform, and in lottery, and he was blown away—‘I can’t believe how many people are gamthen also from a VenueBet perspective, which is our in-venue mobile wagering solu- bling; I thought people didn’t play slot machines anymore!’ tion. Bally had nicely invested in that, as well. “If you go to Southern California, the Midwest, Florida, Aqueduct and lots “Again, taking all the content and applications from both companies and then of other places, people are still playing slots. We have the biggest stadiums in the putting them on top of these platforms has really resulted in a very nice synergistic world in Singapore, Europe’s been under-invested for many years, and we have offering to the marketplace.” our first table WAP rolling out in the U.K.” Most of the products developed by the legacy companies will remain in place, He adds emerging VLT markets in Italy and Greece, and booming casinos in he adds, but now with the power of all of those gaming brands. “Within social, our Latin America and elsewhere, in emphasizing one thing: The supposed decline of apps are really our brands to the consumers—Jackpot Party, Gold Fish, and more the gaming business has been exaggerated. Gaming is strong and growing in recently Quick Hit and Hot Shot,” says Levin. many areas, and the new Scientific Games is uniquely positioned to take advanIt’s all wrapped up in a product package Scientific Games calls the “SG Unitage of that fact. verse,” a conglomeration of all the different products, applications and technologies “The lottery and gaming guys in our company seem to be getting along very of the former companies. well, and if customers ask, ‘Are you lottery or are you gaming?’ the answer is that That includes direct consumer products like the social casino applications; real- is, it doesn’t really matter,” says Isaacs. money gaming through the remote game server product in legal, regulated jurisdic“We’re everything. Because, guess what your players are? Your players are tions like the U.K., Canada, and New Jersey; and the related land-based content in everything.” 30
Global Gaming Business OCTOBER 2015
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GLOBAL GAMES 2015 Our annual comprehensive view of the slot sector heading into the big show By Frank Legato
T
his year, as they do every autumn, the slot manufacturers of the world bring their new “model year” to the industry at Global Gaming Expo. This year, however, is a bit different than the past. Actually, it’s a lot different, as far as the makeup of the slot sector. What had been the industry’s top five slot manufacturers are now the top four—mergers and acquisitions accounting not just for that, but for manufacturers including WMS, Bally, SHFL and Barcrest now wrapped under the corporate umbrella of Scientific Games; the former GTECH and IGT now IGT Ltd; the former GCA and Multimedia Games now Everi; and Class II suppliers Video Gaming Technologies and Cadillac Jack now part of Aristocrat and AGS, respectively. They will all display their wares at expanded booths on the G2E floor; there will be fewer but larger slot-maker displays. The game content that makes up those displays, while as innovative as ever, reflects another kind of change. We will see the first nods to the millennials in skill-based bonus games. We will see a continuing convergence of the system and slot-machine disciplines. We will see convergence, as well, of casino and lottery disciplines. And finally, the displays at G2E will reflect another kind of convergence— that of land-based casino games and the online disciplines of both for-money and social slot gaming. In short, G2E, as always, provides a vision of the future of the slot floor. As usual, many of the details on the new games that you will find on the following pages are exclusive to GGB; they appear in print here for the first time. Also as usual, we have given each of the slot manufacturers its own space in our annual Global Games section, explaining not only the games each is launching but the company’s background and focus for the year. So, sit back and enjoy our Global Games 2015 section. Keep it as a reference to aid you on your slot purchase decisions, and don’t hesitate to provide us feedback on how we can make this annual feature better. All articles written by Frank Legato unless otherwise indicated
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GlOBAl GAMES 2015
AINSWORTH GAME TEcHNOlOGY
Discovering America A new North American headquarters will drive everincreasing sales in the U.S. for Australia’s Ainsworth
I
f you look out from one side of the Las Vegas headquarters of one of the entrenched leaders of the North American slot-machine business, you can see a new structure rising rapidly next to county highway 215. Slated for completion in mid-2016, it is the new 291,000-square-foot North American headquarters of Australian slot manufacturer Ainsworth Game Technology. Founded in 1995 by Len Ainsworth, the slot-industry legend who founded Aristocrat in 1953, Ainsworth Game Technology has consistently been a market leader in its home market of Australia, as well as in Asia and other worldwide markets. Most recently, the company has zeroed in on the Americas, and North America in particular, the last great frontier for the company. Mike Dreitzer, president-North America for Ainsworth, notes that the company has made big strides this year toward its goals for the market. “Ainsworth Game Technology had a tremendous year, and looks forward to continuing to gain market share in the North America market in the years to come,” Dreitzer says. “Revenues in North America increased by 41 per-
cent year over year, and our unit volume increased by 30 percent. I believe that these increases were due to the incredible market acceptance of the 560SL cabinet, as well as a wide variety of other products that have been top performers across every jurisdiction.” That cabinet will be showcased at G2E, he says. The popular A560SL features a prominent 32-inch high-definition display, a 19-inch LCD topper option for jackpot promotion, unique attract lighting stylized to each game, premium sound experience and intricate graphics. The games to go with those cabinets will be headed up with new game content for the Ainsworth GamePlus and Premium Plus product ranges. “We have a tremendous lineup of products that will be unveiled at G2E,” says Dreitzer. “Some of the key titles that I am very excited about include the Order of the Dragon series, which will introduce the Double Sweet Zone feature; additional titles that will be unveiled for our very successful Sweet Zone brand, and the new Sky High Stacks series.”
BIG BRANdS Dreitzer adds that Ainsworth is devoting more R&D to licensed brands, a fastgrowing area for the company in North America. “We saw a 19 percent increase in our participation footprint over the past 12 months,” he says, “and anticipate that this segment will also continue to grow with the introduction of new licensed products.” This year, those new products include Cinderella, The Three Amigos and King Kong. In addition, Ainsworth’s latest high-profile licensed products, The Sound of Music and Showgirls, also will be prominently displayed. The new licensed titles will be accompanied by the debut of the Sky High Stacks series, a group of games containing a free-spin feature on an expanded nine-by-five game array, with increased wild multipliers and all symbols stacked during the feature. The 5 Power 7s and 5 Mega 7s series will expand with 5 Power 7s-Fruit and 5 OCTOBER 2015 www.ggbmagazine.com
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GlOBAl GAMES 2015
AINSWORTH GAME TEcHNOlOGY “We have a tremendous lineup of products that will be unveiled at G2E. Some of the key titles that I am very excited about include the Order of the Dragon series, which will introduce the Double Sweet Zone feature; additional titles that will be unveiled for our very successful Sweet Zone brand, and the new Sky High Stacks series.” —Mike Dreitzer, president-North America, Ainsworth
Mega 7s-Fruit titles. These classic eight-line games feature five levels of stand-alone progressives and a re-spin feature that can be awarded with any bet. After the completion of the re-spin feature, a bonus curved reel is spun to award respins, bonus prizes or guaranteed progressives at max bet. Another highlight will be 5 Star Jackpots, which incorporates five levels of Grand Progressives, eight levels of stand-alone progressives and the popular Wheel Winner feature containing multipliers and jackpots. 5 Star Jackpots contains three titles, each with a unique wild feature. Shanghai Nights contains locking wilds on reels 3, 4 and 5; Safari Sunset includes long stacked wilds on reels 2, 3 and 4; and Jungle Birds features expanding wilds from reels 2 to 4. Other highlights this year include the recently released Frontier, Fire$torm, Fire Wizard, Ice Wizard, Fire Money, Ice Money, Inca Reef Grand, and the Quad Shot titles Gold Zone, Golden Lion and Mighty Panther. Ainsworth also will feature a group of themes for the core GamePlus library, including new titles in the Play 100 Lines/Play 50 Lines/Play 40 Lines, High Denom and Quad Shot brands. New brands include Ultra Strike, Ultimate Choice, Twice the Riches, Thunder Hits, Quackpot and the new link progressive Thunder Wilds. Two new, key Play 100 Lines/Play 50 Lines/Play 40 Lines titles—Mustang Fever and Mustang Fortune—build on the success of the popular Mustang Money feature. Both games contain held wilds on reels 2 and 4 and a free-games feature offering 10 free games with a two-scatter retrigger for three additional free games. During the free games, Mustang Fever contains an expanding multiplier on the third reel, and Mustang Fortune contains an increasing stacked multiplier on reel 3. The latest product range for the Latin American market is set to expand with the introduction of several new titles, including Piñata Spirit, Multi Win 12–15, Chili Chihuahua and Rumba Salsa Mambo. 34
Global Gaming Business OCTOBER 2015
The new Ainsworth Las Vegas facility, which will encompass a two-story office, manufacturing and warehouse complex on 23.7 acres, will give the company a base for expanding its footprint in the North American market. “We are continuing to receive additional licenses in several states,” says Dreitzer, “which will enable Ainsworth to enter many new markets in the coming months, with the near-term goal of competing in every market with legalized gaming in North America.” With the expansion into new markets will come growth in the Ainsworth product library. “Ainsworth’s focus for the upcoming year will be to continue to expand our product library, including the release of some key licensed titles,” says Dreitzer. “In this process, we will introduce many new game themes on our popular 560SL cabinet, continue to develop unique game play mechanics to continue to improve player experiences, and follow our company’s tradition of continuing to make great games that people love to play.”
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GLOBAL GAMES 2015
AGS
New Look, New
Mission
Acquisitions, a new Las Vegas facility and new platforms position AGS for the future
S
lot manufacturer AGS bears little resemblance to the Class III supplier that former CEO Bob Miodunski took over five years ago with an eye toward cracking Class III markets. It doesn’t look much like the company taken over two years ago by Apollo Global Management and current CEO David Lopez, either. That’s because Lopez has spent the past two years reinventing AGS through acquisitions and the formulation of a new direction in game design. First came the acquisition of Colossal Games, the firm headed by CDS founder and gaming supply legend Steve Weiss that specialized in super-sized novelty games and quirky video slots. Next came the purchase of Casino War Blackjack, Inc. and a move into table games. While those deals certainly broadened the scope of offerings from AGS, two acquisitions this summer have completed the company once known as American Gaming Systems as a competitive casino industry supplier. First came Cadillac Jack, the Georgia-based company which, like AGS, had successfully expanded from Class II to Class III, with more than 13,000 units installed across the U.S. and Mexico. The acquisition “made a ton of sense,” says Andrew Burke, vice president of slot products for AGS. “Cadillac Jack and AGS are like cousins. We both grew up in Class II markets, with Class II experience and knowledge, and we both transitioned from founder/owners to corporate owners.” He adds that the markets of the companies were complementary. “Our areas where our products are strong in the market do not really overlap much,” he says. “They are very strong in Alabama and Wisconsin, and extremely strong in Mexico. We’re very strong in Oklahoma and Florida, among other markets. It was a perfect marriage.” Burke says the people were the other big asset acquired with Cadillac Jack. “It’s gone the way you hope all acquisitions will go—we’ve really built one awesome team, picking the best folks from both sides, without compromising our standard of excellence.”
Shortly after the Cadillac Jack deal closed at the beginning of June, the company announced a move into social gaming with the acquisition of leading social gaming supplier RocketPlay, which has offices in San Francisco and Tel Aviv. The Cadillac Jack name is history, RocketPlay is now AGS Interactive, and the leadership of the reinvented company is now all in one office, a new headquarters facility in Las Vegas that opened in April. According to Burke, the company has benefited from having all creative staff under one roof. (AGS and the former Colossal facilities had been in separate buildings.) The bulk of manufacturing for AGS, including the former Cadillac Jack games, will remain in Oklahoma, the AGS manufacturing hub. Satellite offices will be maintained in Las Vegas and in the former location of Cadillac Jack near Atlanta. With the new digs has come a new direction in game design. The “It Pays To Know” series of trivia-based games— Ripley’s Believe It Or Not! and Family Feud are the hits of that series—is being phased out, as is the premium-game platform Roadrunner. Burke says the company’s engineers are busy creating a new core platform. The combined R&D team is headed by Chief Technology Officer Sigmund Lee, who was Cadillac’s CTO. He will report to Mauro Franic, who brings his former Cadillac role of chief operating officer to AGS. According to Burke, the R&D team in Atlanta will focus on dual-screen core video slots, and the team in Las Vegas will focus on niche products like the Colossal games and high-limit slots. Burke says having an R&D team in Atlanta, home of Georgia Tech, is a big advantage. Much like the former Multimedia Games in Austin, Texas, having a local university provides a steady stream of engineering
The Cadillac Jack name is history, RocketPlay is now AGS Interactive, and the leadership of the reinvented company is now all in one office, a new headquarters facility in Las Vegas that opened in April. 36
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“Having access to more core video content is certainly going to add more to the arsenal we can offer casinos.”
talent. “R&D talent in Las Vegas is hard to get, so it’s Combined Presentation awesome to have a presence there.” This year will be the first Global Gaming Expo Kevin Reilly, assistant director of product manshow in which AGS presents a combined display agement at AGS, adds that the Georgia engineers are of the equipment from all its newly acquired all passionate slot players. “They’re gamers; they’re companies along with legacy products in a coheout there experiencing the ride themselves,” he says. sive collection representing the new AGS—a total —Kevin Reilly, assistant director “We have a passion for our games as well, and sharing of around 60 games, including 14 new titles. of product management, AGS that with the Georgia R&D team is great.” Highlights will include Tiger! Tiger!, a fourBurke says the main game style of the future will by-five-reel, 50- line game aimed at both the be that of Cadillac Jack, which itself only recently Class II and Class III markets. The base game launched a new core platform. He says that platform repcenters around a feature AGS calls Dynamic Streamresents the direction the company is taking in game design—more volatile, ing Stacks, in which multiple large stacks of symbols are randomly inserted low-denomination, multi-line video that promotes repeat play. Burke calls it from spin to spin. Anywhere from eight to 20 free spins can be awarded “Aussie-style,” as opposed to the entertainment-based, bonus-packed features based on the number of scattered bonus symbols displayed. of Roadrunner. The company also is using the volatile game style it inherited from Burke notes that these games are built for extended play with very short Cadillac Jack to release its first games to court Asian players, Golden Wins event sequences, creating the kind of steady, uninterrupted game play that enand Jade Wins. The Class III games will be the first titles on the “Da Ji Da tertainment-style games do not have. Li Multi Linked Progressive.” “We’re really pushing hard to be a meaningful player in the core game Featuring a three-by-five reel configuration, the games use the former space,” Burke says. “We’ve always had a skill set at AGS that lends itself to preCadillac game style called “PowerXStream,” featuring several different mium or specialty games, but we’ve always had a big need for core games—the unique reel configurations, including varying symbol sets—referring to skill sets are really different. Now, we’re going at that core space aggressively.” number of symbols per reel, the games include 3-4-4-4-3, 4-4-3-4-4, 4-4Adds Reilly, “That really helps us, because when we’ve been going into 4-4-4 and 3-3-4-4-4 configurations. They are all “ways-to-win” setups, new markets, we’ve been doing it with games like Ripley’s and Family Feud, nearly all with wins occurring for adjacent symbols paying both left-tobut we can only sell two of those (to a casino), maybe three or four. Having right starting with the first reel and right-to-left starting with the fifth reel. access to more core video content is certainly going to add more to the arsenal The primary reel setups result in 576 possible ways to win on every spin. we can offer casinos.” Tiger! Tiger! and Golden Wins will be the launch games for a new cab-
OCTOBER 2015 www.ggbmagazine.com
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GLOBAL GAMES 2015
AGS
Player favorites acquired by the recent acquisitions will include a complete lineup of table-game products such as Double Ball Roulette and Count’s Kustoms, the latter a hugely popular blackjack side bet with the prize of a custom car, truck or motorcycle built by the crew from the History Channel reality show Counting Cars.
inet from AGS called “Icon,” which features a thin profile along with new lighting and improved sound. Burke says Icon is going to be the dual-monitor core-product cabinet going forward, with the first installs already in the field. Other Asian-style AGS titles to be on display at G2E are Fu Panda and Gold Dragon, the latter of which incorporates “Fierce Factor,” another former Cadillac Jack program feature that returns higher wins for higher line bets. Asian themes will be accompanied by Dreamcatcher, a Native Americanthemed game; and Fire Wolf. These are core former Cadillac titles onto which AGS has added a tall top box housing a multi-level progressive tower, creating a genre Burke calls “Core Plus.” Fire Wolf is another PowerXStream title. Other new games include updated versions of the Super 10X and Super 5X titles, featuring player-friendly math, familiar symbols and single paylines. Both games, on the AGS GT5000 cabinet, are designed for high-denomination play.
PArAdE Of fAvOritES The new games will be accompanied by unique AGS offerings that are already doing well in the market, including Colossal Diamonds, the giant slot on the “Big Red” cabinet that Burke says is one of the top-performing products in each market where it has been introduced. “Colossal Diamonds continues to be a fantastic product for us,” Burke says. “We’re still aggressively rolling that product out, and it continues to be a huge focus for us. We’re committed to continuing the life cycle of that product with different games, long-term.” The high-performing Ripley’s and Family Feud games also will be dis38
Global Gaming Business OCTOBER 2015
played, as well as Cadillac favorites like Peter & Wendy: Hook’s Revenge and White Buffalo. Additionally, player favorites acquired by the recent acquisitions will include a complete lineup of table-game products such as Double Ball Roulette and Count’s Kustoms, the latter a hugely popular blackjack side bet with the prize of a custom car, truck or motorcycle built by the crew from the History Channel reality show Counting Cars. Count’s Kustoms will be included on a game at the AGS booth incorporating a second new side bet, called Bonus Spin Blackjack. With that bet, if one of the first two cards is an Ace, players are paid even money, or if a blackjack is dealt, the player will press a button which spins a virtual wheel to win cash or a unique prize. Finally, AGS Interactive will display games included on the former RocketPlay social, online and mobile-game platform, including Royal Reels—the No. 1 AGS game in Oklahoma and the first AGS title to be added to the RocketPlay’s Lucky Play social casino—So Hot, Double the Devil, Monkey in the Bank, Going Gnome and White Buffalo. For the future, the company is developing a new premium cabinet as a follow-up to its Stratos and Skytower cabinets, developing new Bonus Spin Blackjack versions, and converging the former technologies of its predecessor companies into a new slot platform. The new platform will most likely look a lot like the legacy Cadillac Jack platform—and generate the kind of repeat play that promises to be the bread and butter of the new AGS.
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ARISTOCRAT TeChnOlOgIeS
Humming
Along
Aristocrat draws on top engineering talent, a new Class II subsidiary and innovative hardware to reach new heights ristocrat has been in training for this year’s Global Gaming Expo for quite a while. Roughly six years, actually. That’s how long it’s been since Jamie Odell, CEO of Australia’s Aristocrat Leisure Ltd., announced a five-year plan to return the company and its U.S. subsidiary Aristocrat Technologies to the kind of powerful performance it had delivered in the early 2000s. The plan was to tap existing and new resources to generate innovative new game styles—like the much-copied landmark games and play mechanics created in those early 2000s glory days—to rededicate itself to the U.S. market, and to increase the company’s footprint in gaming operations with high-profile entertainment brands. The view at five years plus one is all that and more.
A
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Global Gaming Business OCTOBER 2015
Aristocrat super-charged its investment in game content development, creating top titles such as the recently released Britney Spears, Game of Thrones, Lightning Link and Sons of Anarchy. While the development team concentrated on building the company’s content strategy, Odell’s team moved to complete its product line by adding something it never had before—a thriving Class II gaming machine business in Tennessee-based supplier Video Gaming Technologies, an acquisition that closed in October 2014. The VGT acquisition was incremental to Aristocrat, with very little if any staff reductions resulting from duplication, or “synergy” as it has become known. VGT had a ready-made Class II market of thousands of games in Oklahoma, California and elsewhere.
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“A big message to our customers this year is that we understand you have a business to run, and that you need products that will drive your business today. And we’re going to show a large range of products they can take here and now, either just approved or just on the verge of approval.”
The VGT acquisition solidifies Aristocrat’s position in the North American marketplace, which now comstrength of not only the games, the math—the things prises 70 percent of the company’s revenue (although we’ve always been really well-known for—but also sales in its home base of Australia have soared as well). the cabinets, so that when customers are investing To help guide that journey, in June, Aristocrat brought with us, they’re safe in the knowledge they can spread in Brooks Pierce as managing director for the Americas. our content across their floors in all manner of differPierce, a 25-year industry veteran, most recently was ent configurations and different segments, and get a chief revenue officer for rival Scientific Games. great return on their investment.” “I feel very lucky to be coming into this organizaThe Arc Single and Arc Double cabinets utilize tion at this time,” says Pierce. “In terms of where we are giant 42-inch vertical LCD monitors to maximum from a product standpoint, we are firing on all cylinders. effect. Curved toward the player (hence, “arc”), even —Matt Wilson, senior And most importantly, in terms of performance, the emthe one monitor on the Arc Single almost gives the vice president of sales pirical data is strong about how our games are performeffect of being down front at the movies. and marketing, Aristocrat ing relative to our competitors. And in a market that’s Already larger than most vertical monitors in the consolidated and kind of flat, we’re the company that is field, Arc Single was soon to be enhanced even furgaining share relative to our competitors. ther, first by adding a mechanical bonus wheel atop “At G2E, we’ll have some additional products that will get the industry exthe cabinet, and then, by doubling down on the display with the hard-to-lookcited, and will continue our momentum.” away Arc Double. In the 12 months since the VGT acquisition, the company has made great The Arc Double combines two of the massive 42-inch displays—and the progress with integration. Aristocrat appointed Jay Sevigny, an industry veteran interactive “iChair” providing booming audio and vibrations—to complete the with experience on both the operator and supplier side, as president of VGT. player’s immersion in the game at hand. And the marriage has already given birth to an enhanced product line, with the And then there’s the Behemoth, which employs an unheard-of 84-inch recent release of the Easy Money Jackpot wide-area progressive link, combining LCD monitor in a presentation sure to draw a crowd. This year, Aristocrat VGT’s industry-leading Class II product with Aristocrat’s progressive technology. places The Big Bang Theory on the big screen, in a hilarious video slot that With the incorporation of VGT, Aristocrat comes to Global Gaming Expo makes the most of the funniest moments from the show in clips that are part with new products in all categories, from Class III to Class II to systems, social of numerous mystery and triggered bonus events. gaming and more. This year’s show is a result of the company’s R&D team developing content for any of a number of groundbreaking cabinet styles launched Filling the Form over the past two years, from Arc Single to Arc Double, Arc Wheel, Behemoth Aristocrat’s lineup at this year’s Global Gaming Expo reflects the results of the and Helix. company’s top designers utilizing all the hardware tools available to them to pump out a remarkable stream of new games in all categories—the C*Series of the Form Factor core video slots, the E*Series of entertainment-based games that include major The hardware styles have been vital in providing a palette on which Aristocrat’s licensed titles, the J*Series of jackpot products, and the new M*Series of multidream team of game designers can create their masterpieces. game products. “Our focus for the last 62 years has been about the math, the game, the soft“We’ve segmented it such that any type of player, whether you’re a highware,” comments Matt Primmer, senior director of portfolio planning and stratvolatility gambler or you want time-on-device and entertainment, we have a egy for Aristocrat. “We still firmly believe that today, but curb appeal matters. different product line,” says Pierce. “Over time, having that kind of diversity The form factor matters. The big increase in form factors goes hand-in-hand and breadth is going to win the day.” with our share growth.” Matt Wilson, senior vice president of sales and marketing for Aristocrat, He adds that the variety of game styles and cabinets has been one of the says this G2E will be as much a “selling show” as any previous events, since the major changes in how Aristocrat has approached game development over the manufacturer launched several major titles as recently as late summer. “Manupast half-decade. facturers can be guilty at times at G2E of leaning too far forward to show fu“We used to be the Australian company that had one cabinet configuration, turistic concepts,” he says. “A big message to our customers this year is that we and we were the 10 percent company,” Primmer says. “Now that we’re growing understand you have a business to run, and that you need products that will out of that mold, we have three different variations of the Helix cabinet, we have drive your business today. And we’re going to show a large range of products the Arc Single cabinet in the for-sale space, and in our gaming operations, we’ve they can take here and now, either approved or on the verge of approval.” still got our Vervehd, which continues to perform phenomenally; and the WonThe Arc Double will host two major new licensed themes as follow-ups to der Wheels configuration, which has been out for just over a year and continues Britney Spears, which has been a major hit for Aristocrat. “A lot of the products to do phenomenal things. we showed at the last G2E are getting into the marketplace today,” says Wilson. “Now, adding the Arc Double and the Behemoth to the lineup gives us that “Early performance for those games is off the charts, especially Britney Spears.” OCTOBER 2015 www.ggbmagazine.com
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With players still lining up to gaze at Britney up on the massive Arc Double screens, Aristocrat is launching two new major licensed themes on the Arc Double—Game of Thrones and Downton Abbey. Game of Thrones, shown at last year’s G2E and launched last month, is based on the popular HBO fantasy drama about battling royals, kingdoms and dragons. Reel symbols depicting major characters and high-definition video excerpts from the series are wrapped into bonus events that include free spins on expanded reels that cover both huge screens and a giant wheel, viewed from the side as it turns across the entire two-screen display. The slot machine based on the British period drama Downton Abbey, currently a hit in the U.S. on PBS, will receive similar theater-style treatment on the Arc Double, with reel symbols and bonuses depicting the show’s fictional aristocratic family, which is set against the historic events of early 20th century England. Other Arc Double games include Buffalo Grand and The Walking Dead Season Three—the follow-up to last year’s most successful Aristocrat title. “The release of Buffalo Grand is very exciting,” says Wilson. “That’s the biggest proprietary brand in the casino today.” He says players at a recent “Slot Fanatic Forum” in Louisiana actually stood and applauded the game. More high-profile brands are coming in the Arc Wheel version of the cabinet, headed up by A Christmas Story, a hilarious treatment of the beloved 1983 Christmas movie. The title is joined by Batgirl, the latest theme depicting the Batman series of the 1960s; and Bettie Page, based on the 1950s pinup queen. The trend continues in the Helix Wonder Wheels cabinet, with more hilarity as Dumb and Dumber, based on the 1994 comedy starring Jim Carrey and Jeff Daniels, gets the immersive treatment in the multiwheel, theatrical format that hosts the wildly popular Batman Classic TV Series. Another new theme on the Wonder Wheels format is Man of Steel, the latest incarnation of Aristocrat’s licensed series based on recent Superman films. Ted and The Big Bang Theory, both hit games introduced at last year’s G2E, round out the Wonder Wheels offerings. The Behemoth cabinet will receive even more attention, as the company’s license connected with The Big Bang Theory gets a super-sized treatment with The Big Bang Theory: Bazinga. This one is loaded with clips from the show, on a screen so large the characters are practically life-size. Pierce notes that Vervehd, introduced four years ago, is still generating top-earning titles, such as the recently launched Sons of Anarchy. “While we have fantastic new cabinets, we are proud that our landmark Vervehd continues to perform at such high levels,” Pierce says. Highlights in the Arc Single cabinet include sequels Sky Rider 2 and Moon Maidens 2, along with Diamond Storm, Buffalo Gold, Miss Kitty Gold and Wonder 4 Tower. The latter adds a multiple-progressive tower bonus to Aristocrat’s popular multi-reel format, which allows players to choose any or all of four popular Aristocrat themes for simultaneous play.
CATChIng lIghTnIng Aristocrat is bringing new games to G2E that are designed for the Helix family of cabinets, launched last year in upright, standard slant and “Super Screen Slant.” The two floating 1080p-resolution LED display monitors, immersive rear-surface ambient lighting and quad sound package of the Helix format will enhance new titles. 42
Global Gaming Business OCTOBER 2015
However, one of the highlights of the show for Aristocrat this year will be a multi-progressive series developed for the Helix Upright called “Lightning Link,” which has been a major hit in Australia—as are all Aristocrat products in its home base, where over the past year the company has logged an astounding 70 percent ship share (up from around 25 percent five years ago, Wilson notes). Lightning Link is a linked multiple progressive designed for core video slots that features a player-selectable denomination. In Australia, core Aristocrat game titles equipped with Lightning Link constitute 17 of the top 20 performing games, according to an independent organization that tracks slot win. Lightning Link was launched on four games in Australia (Happy Lantern, Magic Pearl, Sahara Gold and High Stakes), with a top Grand Jackpot that that is linked along with a “Major” stand-alone jackpot and two levels of denominationally specific bonus prizes. The technology adds a quick-hitting four-level progressive feature to Aris-
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ARISTOCRAT TeChnOlOgIeS The mind-boggling collection of Aristocrat slots will be accompanied for the first time at this year’s G2E by a complete range of Class II titles from the newly incorporated VGT subsidiary. tocrat core games. The jackpot feature is triggered every 100 spins on average, with the top Grand Jackpot hitting every 25 days on average, according to the company. It can be triggered from the base game or a free spin, and the progressive bonus game is simple—special reels appear and icons representing one of the jackpots are held and the other reels re-spun until collecting five of the icons. “We’re incredibly excited about this product coming to North America,” says Pierce. “We’ve been meeting with all of our biggest customers, and they share the enthusiasm.” “It’s one of those typical Aristocrat products,” adds Wilson. “People who understand games instantly see the benefits. It is innovation in the most core gambler-centric kind of way, and our customers are responding to it. It’s dominating the Australian market in a way we’ve never seen, at least not since Cash Express and Penny Train (in the early 2000s).” The mind-boggling collection of Aristocrat slots will be accompanied for the first time at this year’s G2E by a complete range of Class II titles from the newly incorporated VGT subsidiary. New WAP, video and hardware products include VGT’s recently launched wide-area progressive, Easy Money Jackpot, with a three-reel mechanical WAP startup value of $250,000; and the new Red Spin Gambler Series high-denomination video games, which target core gamblers with known brands with high-denomination, low-line-count three-reel and five-reel video games like Mr. Money Bags Red Spin Deluxe, Polar High Roller Red Spin Multipliers, Lucky Ducky Red Spin Run and Ruby’s Red Spin Wilds. VGT also will show VGT XL, a new jumbo cabinet featuring VGT’s most popular characters—Mr. Money Bags, Hot Red Ruby, Lucky Ducky and Polar High Roller. Complementing the broad selection of games, of course, will be systems solutions, including Oasis 360, according to the company the most widely used casino management system in North America, and a line of products and services that enable operators to extend beyond traditional casino and F&B amenities—including solutions that track customer activity at every touch point, leverage actionable events to drive patron behavior and incentivize patron performance to achieve awards/recognitions. Many of Aristocrat’s new solutions are available to operators regardless of the CMS system in place, and Aritocrat will show ONE LINK technology, HALO loyalty, Carded Mystery and Mobile Concierge. Aristocrat also will show its new beverage ordering system, Drinks on Tap, along with an unattended jackpot processing system and a completely redesigned nCompass player interface.
STRengTh fROM STABIlITy Pierce notes that the slot-maker’s strength and continuing upward trajectory in part come from the fact that it has not been part of the consolidation bonanza in the slot sector. “Customers don’t ask us questions about synergies,” he says. 44
Global Gaming Business OCTOBER 2015
“They don’t ask us who’s not going to be here the next time we talk. They don’t ask us if we’re not going to be able to make our debt payments. Those are non-issues, so we can be very focused on delivering the best experience to our customers and ultimately to their players.” And in the end, the products, he says, are the “key differentiator” in the business. “In the end, the customers want to buy what their players want, and what their players play. And there’s one litmus test for that— how much money is left in the bucket at the end of the day? And on that measure, we’re doing very well.” “This is a changing industry,” adds Wilson. “With all the consolidation that’s happening, it’s certainly an industry that is going to look different, and certainly looks vastly different than it did a year ago, and more than likely will look different in the next couple of years. But we feel very confident we’ve got the team in place, and the products in place to execute our strategy for the foreseeable future.”
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GLOBAL GAmeS 2015
Aruze GAminG AmericA
Branching Out New reel formats, e-tables and a millennial-friendly cabinet reflect the growing popularity of Aruze slots ruze Gaming America is broadening its appeal. As the U.S. subsidiary of Japanese amusement and gaming supplier Universal Entertainment consolidates the gains it has made through innovation in both video and reel-spinning genres over the past five years, Aruze is adding new game genres designed to bring new, younger players to the slot floor. It is a development meant to apply Aruze’s growing R&D prowess to new frontiers. Over the past five years, through the introduction of new game styles—ranging from the landmark Innovator stepper series to the elaborate top boxes of Innovator Deluxe, the tactile functioning of community-style games like Paradise Fishing in the G-Link series, and the emergence of its multi-station e-tables in the G-Link series—Aruze has been on a constant mission to broaden the appeal of its game library to cover not only current demographics, but the emerging demographic of millennials that will dominate the casino audience before long. As is becoming a popular strategy among slot-makers, the form precedes the function. In this case, it is the expansion of offerings on the new cabinet introduced last year, which was designed to capture new slot players.
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The cuBe-X This year’s Global Gaming Expo will serve as the coming-out party for the Cube-X cabinet, with new formats designed to expand its reach. “We really designed Cube-X for a younger generation,” says Kelcey Allison, CEO of Aruze Gaming America, “because our customers are saying, ‘We want a slot machine that appeals to the millennials.’ Our Cube-X was designed ergonomically and aesthetically for that reason, to really capture the Xboxers and PS4 players. “That’s really what the box is designed for—to appeal to that person but still not segregate the older demographic.” Allison notes that Aruze equipped Cube-X with a processor the company calls APX, which he says is “the fastest processor in the industry right now.” Add intensified lighting, high-definition LCD touch-screen monitors and LCD touch button panels, and Cube-X becomes what the company considers the next generation of hardware on the slot floor. Allison adds that in addition to technological and ergonomic advances, CubeX is designed with the operator in mind. “There are no more hardware conversion kits; it’s all done electronically,” he says. “It’s much easier to convert a game; it’s literally a five-minute process. The door drop is a single door versus a whole belly door swinging out. We’ve redeveloped the whole drop-door system.” Cynthia Gonzalez, product marketing specialist for Aruze, adds that Cube-X 46
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“For years, we have had people coming up to us saying, ‘Can we just buy this product instead of doing participation?’ Our president came up with an idea of taking The Gold, our most successful game, and transforming it into Gold Wheel. It is a non-WAP linked progressive or stand-alone game that you can lease or purchase.” —Kelcey Allison, CEO, Aruze Gaming America
provides marketing advantages for casinos as well, particularly in the form of customizable LCD toppers. “What’s nice with the toppers is that the casinos can do their own advertising on them, not just artwork from the games,” she says—from weekly events to a birthday message for high-end players. According to Allison, there are three platforms being launched in the Cube-X—the basic Cube-X video slot, the Cube-X Innovator stepper series and Cube-X Ultimate, which features prominent top box events. The Cube-X Ultimate was launched in August with 999.9 Gold Wheel, a premium threereel video slot topped with a basic wheel bonus that can lead to one of four progressive jackpots. The game was designed to look and feel like a certain famous wheel game from another manufacturer, but unlike that famous game, Gold Wheel will be available for sale as well as lease/participation. “For years,” explains Allison, “we have had people coming up to us saying, ‘Can we just buy this product instead of doing participation?’ Our president came up with an idea of taking The Gold, our most successful game, and transforming it into Gold Wheel. It is a non-WAP linked progressive or stand-alone game that you can lease or purchase.” A second game in the genre, Gold Legend, includes a two-level progressive and multiplier with the wheel. The Cube-X Ultimate series will be augmented at G2E with a new cabinet in Aruze’s “Future Room” at the booth, called the Cube-X Ultimate Vertical. To be available in the first quarter of 2016, the Cube-X Ultimate Vertical cabinet features high-definition 3D that Allison says “actually moves,” and a massive display comprised of two stacked, 42-inch vertical monitors. “The technology is going to blow you away,” promises Allison. “On one game, there is a 14-level progressive. On another, the reel strips go all the way to the top of the game. It is amazing.” The first titles on Cube-X are already in the field and turning in outstanding numbers, Allison says. New video slots being launched on the Cube-X at G2E include Extreme Dragon and Extreme Phoenix, 243ways-to-win games featuring the Extreme Progressive, won through wild symbols and a
bonus event; the “Goddesses” series, with “Mighty Symbols” spanning across three reels to create a nine-symbol stack for a re-spin feature; and the “Golden” series of high-volatility progressives, being launched with the games Golden Diamond and Golden Heart, both 243-ways-to-win games with bonus picking rounds winning one of four levels of progressive jackpot. Cube-X also is being used to expand the “Ultra Stack” series of games that feed stacked winning symbols and stacked wilds to the reels in mystery events that have proven wildly popular with players. “Ultra Stack has been our biggest video success in the past two years,” comments Allison. “We have around 30 different titles in five different product families in the group.” Highlighting this year’s offerings in the group at G2E will be Ultra Stack Big 5, which incorporates five of Aruze’s top game themes with a new “iLink” progressive jackpot called Jungle Cash. The presentation will feature elaborate signage with a wrap-around 360-degree display. “We’re putting more horsepower onto our already-successful Ultra Stack series,” says Allison. That strategy continues with 100 Lines Stack Dragon, which features an unlimited retrigger to the eight free games; Ultra Stack Egypt, with its free-spin feature dominated by special reels with top symbols increased; and Ultra Stack Poseidon, which offers the player a choice of volatility in the free-spin feature— 20 free games with no multiplier or five free games with a 5X multiplier. They join the popular Ultra Stack Showgirls, which launched in June. Also featured in Cube-X video is a new “X” series of games in which freegame wins are multiplied by two to 10. Titles include Tokyo Rose X, Kabuki Master X, Tokyo Rose X and Dragon’s Fortune X. The Cube-X games join a wealth of other video slots being launched in the G Series, which features simple, low-denomination, volatile games with freespin bonus events. Launching at the show will be the 1,024-ways-to-win Charging Bull, Asian-themed games with beautiful art including Streaking Dragon and Streaking Beast Tiger, and Master of Wealth with its golden Buddha-like character. The Asian games were designed to boost the flat Australian market, but according to Michael Maley, marketing specialist at Aruze, a recent focus-group test indicates they will be a hit in North America as well. “We had a player’s event at Green Valley Ranch, and the Australian games were really popular,” Maley says. “Players were asking us where they could find the games on the floor so they could go out and play them.”
Reel InnovatoR The reel-spinning genre gets a big boost from Aruze this year with a group of games on the Cube-X cabinet. Games in the Cube-X Innovator series, hybrid slots with spinning reels and bonus features in a top-box monitor, are already in
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the field, and many more will be launched at G2E. The debut Cube-X Innovator title, already in the field, is Apex Gorilla, a five-reel, 30-line stepper with a free-game bonus determined by a roulette-like spin of flashing numbers on the top-box LCD monitor. Lights flash around the display until landing on a number of free spins, which can be as high as 100. Like other Aruze games with a high number of free spins, the player has the option to take a straight credit amount rather than sitting through all those spins. Another highlight in the new Cube-X Innovator series is a new addition to the popular Cherry Chance series on the original Innovator stepper series. Released at the end of August, it’s called Cherry Chance Thunder Seven. “One of our biggest hit product lines in the Innovator group is the Cherry Chance series,” says Allison. “We have about 15 different titles; it’s been massively successful for us. Cherry Chance Thunder Seven goes into a ‘Storm Bonus.’ The reels vibrate with a great anticipation feature.” Chances of “7” wins increase during the free games. “I think players are going to absolutely love it,” Allison says. The Cube-X Innovator also houses a new progressive series called “Burning Hot Jackpot.” Initial titles Aztec Sol, Howling Wolf and Great Inca, all popular Innovator titles brought into the new format, feature a “Progressive Challenge” at the end of bonus rounds, in which the flashing roulette-style display on the top box spins to a credit award or one of four progressive jackpots. “What’s nice about this set of games is that the operator can turn the progressive feature on or turn it off,” says Gonzalez. “When it is disabled, the machine is the original game that was on Innovator.” “We took some of our best titles of the Innovator series and put nitrous oxide in them,” says Allison. “And this comes in a three-game package that is linked.” Other highlights in the Cube-X Innovator series include traditional highdenomination three-reel steppers Royal Midas Touch, Luna Del Sol, Super Magnificent 7 and Triple Double Nutty Jackpot. All are new versions of classic stepper games produced by Aruze parent Universal in the 1980s. “Magnificent 7 was a buy-a-pay game that was hugely popular,” says Allison. “We reincarnated it with Luna Del Sol and Super Magnificent 7. (Luna Del Sol is a clone of Magnificent 7.) Prior to Wheel Of Fortune, Midas Touch and Magnificent 7 were the two most popular slots in the gaming industry. They have not been released since the early ’90s. Some of our biggest customers have said if you re-release them, you’re going to decimate the three-reel 48
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sector (for other manufacturers).” Triple Double Nutty Jackpot, to this day, is the No. 1 slot game in South Africa, in the old Universal platform (“super-glued and duct-taped together,” says Allison). The new classic steppers, designed for dollar play, improve on the three-reel platform released two years ago with six-inch reel strips that Allison says were too large and appeared too slow. The new Cube-X Innovator games use four-and-a-quarter-inch reel strips with softer lights, and the new cabinet. “We’re very excited about our three-reel product in this category,” Allison says. “We think it will be a slam-dunk.”
cOminG TOGeTher Rounding out the Aruze collection this year are community-play games both in the slot and table-game areas. On the slot side, the company is releasing a twogame version of Player’s Party, the massive multi-wheel community game released last year as a follow-up to the hits Paradise Fishing and Amazon Fishing. “Customers told us Player’s Party has great play mechanics, but it takes up half their casino wall,” Allison explains. “They asked, ‘Can you come up with a two-pack version of the game?’ We released it in August, and it’s going to blow your socks off.” On the table game side, Virtual Roulette solves a problem encountered placing multi-player electronic table games in many jurisdictions that do not allow table games or any physical table elements such as dice or, in this case, a metal roulette ball. “This is an actual roulette wheel with high-projection, 3D imaging, so there’s no ball, but it looks like it’s spinning,” says Allison. “This will be our first step into the virtual world of electronic table games. We showed it at G2E Asia and had a massive response.” Allison adds that casinos where table games are legal will add these games because there are no ball errors, and a lot of players have superstitions regarding the air flow of a metal roulette ball. And, unlike live table games, there is a bonus feature. For a dollar side bet, if the ball lands on the “Jackpot Chance” spot lit up on the wheel, a secondary jackpot round begins with a progressive starting at $2,500. “We’re really excited about that, because it places another layer of interactivity on roulette, versus just having a ball go around,” says Allison. Aruze is laying more layers on a wealth of game groups with this year’s G2E collection, the company’s largest ever—and a collection bound to take Aruze Gaming America itself to new levels.
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Best of Both Worlds Alto Gaming continues to introduce the games of the highly regarded Bulgarian company Casino Technology to the Americas
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ulgaria-based gaming manufacturer Casino Technology, developer of some 500 slot titles, comes to G2E 2015 with a rich portfolio of games compliant in many jurisdictions and customizable for individual markets. As always, Casino Technology will greet show attendees alongside its stateside partner and distributor, Nevada-based Alternative Gaming Solutions (Alto Gaming). The companies first joined forces in 2011, to match Casino Technology’s international platform and success as a supplier to a U.S.-based manufacturer and distributor. Their mutual goal: to penetrate Class III markets in the United States and North America and branch out in Asia. The alliance of two innovative companies on two different continents has created an international force designed to bring innovation to the gaming industry. Alto Gaming offers a full range of Class III gaming equipment, including slot machines and video slot games, jackpot systems, decorative signage, progressive links, premium branded series, interactive multimedia applications, multi-player solutions and a unique set of sophisticated gaming systems. It holds the license to distribute Casino Technology’s extensive portfolio of top-performing gaming products. At G2E, look for Alto Gaming to present its popular Hot Rod brand in a retuned design that pays homage to the iconic magazine and those great American pastimes, drag racing and hot-rodding. Hot Rod has been redesigned to appeal to a whole new generation of car enthusiasts and gamers, and is going to “alter the perceptions of gaming horizons in the States,” promises Casino Technology Vice President Rossi McKee. To coincide with G2E, Alto Gaming is launching more than 80 slot titles on Flash and HTML5 for online and mobile apps, with one of the best-recognized social gaming providers, Playsino. Also at G2E, Alto will display authentic U.S. slot game titles including Wild Sunrise, Jungle Fortune and Magic Pearl, all of which have been certified for a number of tribal jurisdictions. In addition, the company will present the multi-level progressive jackpot 8 Peacocks and four unique Asian-themed games, including the colorful Peacock & Dragon. “They provide an exciting mix of games utilizing Chinese mythology characters, attractive visual presentation and an innovative jackpot concept,” says McKee. Blurring the lines between traditional and online gaming, Casino Technology’s Big 5 suite of multi-channel gaming systems also will be showcased at G2E. The Big 5 was designed to bridge the divide between land-based gaming and online/mobile platforms. “As gaming becomes more interactive, it needs to be available on demand,” says McKee. “With the Big 5 all-in-one system suite, we managed to provide a valuable tool to erase the borders between classic brick-andmortar and online gaming by combining five sophisticated systems into a single solution.” The suite includes:
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• The Rhino casino management system, designed to improve control on the slot floor and optimize management and operational processes and to provide player tracking and loyalty program management;
The company just launched its Arch gaming system on its home turf in Bulgaria, offering an immersive gaming experience with Arch’s unique 42-inch high-definition curved display. The result is a multi-sensory experience with pulsing audio, vibrant graphics, touch technology and on-screen interaction.
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“They provide an exciting mix of games utilizing Chinese mythology characters, attractive visual presentation and an innovative jackpot concept.” —Rossi McKee, Vice President, Casino Technology
• The Leopard online gaming platform, which lets operators and players choose among multiple casino games and products and integrates into a single casino lobby and wallet; • The Lion money management system, which enables cash-in/cash-out payment transactions from physical cash into electronic money in a closedloop environment; • The Elephant remote game server, which can distribute content for video slots, bingo and roulette as well as third-party content like virtual sports, sports betting and live games to all existing gaming channels, from online and mobile gaming to traditional VLTs; and, • The Buffalo universal jackpot server, which links online and land-based groups of machines to the same jackpot, and supports both LAN and WAP. The Big 5 is designed to help operators improve slot floor performance and control, as well as attract a whole new customer demographic—the growing ranks of mobile players. “The ingenious architecture of the suite, introduced in 2014, allows us to facilitate easy, less time-consuming updates and upgrades, and in practice has widened the scope of applications and functionality,” says McKee. “Along with multiple installations of the systems in the traditional legal gaming markets in the Balkans, Europe and Eurasia, we’ve succeeded in breaking through the social gaming sector, which currently is gathering speed in the U.S.” The systems create a fluid environment where players can access favorite games from any device through a common account, with all loyalty points and credits readily available. The emphasis is on accessibility, speed and ease of use. “The change in the behavior of users is driving the development,” says McKee. “We have been part of this process in the last five years, trying to predict the trend and implement in the architecture of our Big 5 solution the expectations and behavior of the new generation of players that play at their convenience, on demand, any time, any place.” The components are customizable, and can be used together or separately, depending on market demands and regulatory requirements, for social gaming or in casinos, on slot machines or on game devices of all kinds, including mobile devices and tablets. “The Big 5 was developed with the vision that brick-and-mortar casinos and virtual casinos will coexist and players will ultimately take advantage of both—if the transition between the two is easy, intuitive and seamless,” says McKee. In other developments, the company just launched its Arch gaming system on its home turf in Bulgaria, offering an immersive gaming experience with Arch’s unique 42-inch high-definition curved display. The result is a multi-sensory experience with pulsing audio, vibrant graphics, touch technology and on-screen interaction. Casino Technology is launching Arch with a multi-game mix called Treasure Journey, including 10 unique titles employing proven math models, game features and adventurous themes. Moving forward, Casino Technology and Alto Gaming will build on
their track record of successful gaming products like the global hit Gamopolis multi-game series, including its latest version Gamopolis Speedway, with more unique titles in the new Aurora upright cabinet. Coming up, Casino Technology is preparing to launch its Big 5 suite in Indochina, “to handle the millions of gamers and players in that part of the globe.” And the positive reception in jurisdictions around the world “makes us feel we’re on the right track,” says McKee. “Paving the road ahead, we at Casino Technology created a powerful solution that empowers the seamless connection between land-based and online gaming with the complete range of systems of the Big 5, offering continuous gaming experience to the players from all ages. “Following the booming Asian markets, Casino Technology is planning to explore the opportunities for a launch of the Big 5 on the regulated markets there as well. Only 18 months from the initial launch, we are experiencing great acceptance and interest, proving that Big 5 is the visionary concept for the future of gaming.” —By Marjorie Preston OCTOBER 2015 www.ggbmagazine.com
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Playing Forward After acquiring Multimedia Games, Everi doubles down on the Texas company’s creativity n August 24, executives of the former companies Global Cash Access and Multimedia Games gathered on the podium at the New York Stock Exchange to ring the opening bell, christening their newly merged and rebranded company as Everi. It had been an unlikely marriage, with GCA, the top supplier of ATMs and cash-access equipment to the casino industry, acquiring Multimedia, a highly regarded manufacturer of Class II and Class III slot machines. But in the end, it made sense—beyond the new slogan communicating the combination of technologies, “We get you playing and we keep you playing.” A key advantage of the merger was that GCA was already licensed across the U.S.—twice as many jurisdictions as the still-growing Multimedia, an Austin, Texas-based company and Class II leader in Oklahoma and elsewhere that had been rapidly making inroads in Class III markets. GCA’s licenses instantly broadened Multimedia’s market base. But if anyone wondered what changes the GCA/Multimedia merger would bring to the slot manufacturer’s popular games, the answer came quickly: none. In fact, the new Everi is building on the quality technology, engineering and creativity for which Multimedia was known. The company’s R&D hub, it was promptly announced, will remain in Austin, an inherently creative town where the presence of the University of Texas campus provides a steady stream of engineering talent that would be difficult to match in Las Vegas. While Everi CEO Ram Chary and his staff are still mapping out all the possibilities of the combined engineering of the two former companies, the decision had been made early on to allow the former Multimedia continue to do what it does best—building creative and engaging slots, and the popular TournEvent tournament system. To facilitate that continuity, Chary brought in a veteran supplier of slots and systems, David Lucchese, as executive vice president-games. Lucchese, the former vice president of sales of Bally Technologies and previously a vice president at the groundbreaking supplier Casino Data Systems, says it was determined not only that the eight studio teams in Austin should remain in place, but that they should be augmented. “We wanted to invest in the games business, for the greater good of Everi,” says Lucchese, “so we announced and are executing on expanding our studio content development teams. We decided to open up two new development centers
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geographically remote from Austin.” The two new R&D centers are in Chicago and Reno. “It’s taken us five-plus years in MGAM history to get to eight studio content teams here in Austin, and we want to grow faster,” Lucchese says. “So we announced we’re going to open those cities and double the teams to 16.” To help manage all that content, Lucchese brought in Jim Palermo, the former director of product development for WMS Gaming who most recently served as vice president of product development for growing slot manufacturer Incredible Technologies. Palermo is now vice president of strategy and product management for Everi. Back in Austin, other improvements to the game development efforts include naming longtime Multimedia game developer Allison Pope as executive producer, and Michael Conway, another longtime MGAM executive, as creative director. Pope and Conway will work together to collaborate the efforts of the three studio content centers, in Austin, Chicago and Reno.
There is a boatload of proprietary content being pumped out by the Austin development staff, and this year’s G2E display will be like nothing the former Multimedia ever staged. Beyond being the first show to combine payment and slot technology in a single booth, the sheer number of games to be launched is unprecedented for the company. 52
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“We’re pretty excited about G2E this year, for both the historical payment side and the games side. We will display 140 gaming products, 11 payment kiosks, and also cash/payment products.” —Linda Trinh, VP of marketing and promotions, Everi
Ramping Up Lucchese says the fact that Everi is doubling its number of development teams doesn’t necessarily mean a doubling of content. “What we’ve also embarked on doing is doubling down on the quality of our games,” he says. Part of that will eventually include the kinds of high-profile licensed brands on which the largest manufacturers currently rely. “We’re exploring licenses to do, and as the licenses come along, we’re also creatively looking at how the cabinet should evolve to support a new type of license,” says Lucchese. “So, really, the mantra is not only more, but better and more.” He says his team is targeting the first licensed themes for next year. Meanwhile, there is a boatload of proprietary content being pumped out by the Austin development staff, and this year’s G2E display will be like nothing the former Multimedia ever staged. Beyond being the first show to combine payment and slot technology in a single booth, the sheer number of games to be launched is unprecedented for the company. The first G2E display for Everi also will occupy a much more prominent location on the show’s floor than Multimedia ever enjoyed. Where Multimedia typically had a booth at one corner of the floor, Everi’s is front-and-center on “Las Vegas Boulevard” in the trade-show map (the former location of WMS Gaming, which is now wrapped into the Scientific Games booth). “We’re pretty excited about G2E this year, for both the historical payment side and the games side,” says Linda Trinh, Everi’s vice president of marketing and promotions. “We will display 140 gaming products, 11 payment kiosks, and also cash/payment products.” Those 140 slot games to be displayed include 60 new titles, 13 of which are new products in the stepper category. “We’re truly bringing a casino to life on this booth, OCTOBER 2015 www.ggbmagazine.com
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The Core HDX, which will be released in November, will accommodate any of a total of 140 library titles at launch. The new format features dual high-definition monitors, an ergonomic design with monitors close to the player, vastly improved sound over previous platforms, and dynamic lighting.
including—as we have for the past three years—our TournEvent of Champions bus.” At press time, that bus was crisscrossing the country to attend satellite events in the third annual National TournEvent of Champions, the multicasino national slot tournament on Everi’s unique TournEvent tournament system. This year’s tournament involved 100 casinos—98 in the U.S., two in Peru—which are sending a total of 180 finalists for all-expense-paid trips for two to Las Vegas, where they will compete in the finals at the XS nightclub at Wynn Las Vegas on Wednesday, September 30. The winner will take home a cool $1 million, with $1.3 million in total prizes and no finalist walking away with less than $500. (“One in 180 for $1 million—not bad,” comments Palermo.) Once the TournEvent bus is parked in the Everi booth, attendees will peruse 140 games which, Palermo stresses, are available immediately. “Everything you see in that booth is for real,” he says. “That’s different than some of our competition. There’s no smoke and mirrors, there’s no showing something at this G2E that’s going to launch September 1, 2016. Everything is for sale.” “We’ll also be showcasing our new cabinet, which is the Core HDX,” adds Trinh. “We’re pretty excited about that.” As far as the games themselves, Conway says attendees will notice the jump in quality immediately. “We’ve been all about getting in there and throwing down, and really making the quality of the games better than they’ve ever been,” Conway says. “We’ve tried to really focus on becoming very competitive in the industry. “There’s been a big push to get the art top-notch to compete with everyone. The game play is new. We’ve got content designed specifically for this Core HDX cabinet.” The Core HDX, which will be released in November, will accommodate any of a total of 140 library titles at launch. “No one has ever offered a cabinet that deep in content,” comments Palermo. The new format features dual high-definition monitors, an ergonomic design with monitors close to the player, vastly improved sound over previous platforms, and dynamic lighting. That last point is “what the machine is all about,” says Conway. “It’s a light show.” The vertical display of the two monitors is outlined by stage-style lighting that changes colors dynamically to match events in the game being played. Contrasted to the black cabinet itself, the effect is cinema-like. “It creates this space of excitement on the casino floor,” Conway says. “HDX is the next evolution in light shows,” comments Palermo. “There is functionality in the box that actually makes lights in games relevant. There are a 54
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lot of light shows out there, but we’ve integrated them right into the actual game. Light becomes part of the experience.” Conway says the cabinet also was designed with TournEvent in mind, and the next version of the tournament system— which uses onboard cameras, leaderboard displays, special random score boosts and other features to create an event out of a simple contest— will have the Core HDX as its platform. “That thing is going to pulse on the floor like a beacon,” he says. “And that’s as it should be.” Palermo adds that the other great distinguishing factor of Everi’s new batch of games for G2E is the improved sound system. “As an outside observer and a fan of MGAM as a player, what I’ve noticed the most year-over-year is that we really up-ticked the sound design,” he says. “The sound design in the games we are showing, compared to what we had in the past, is really at the next level.” (Conway says the company moved all sound design in-house last year.)
NEw FEAtuRES, SAME INNOVAtION The mix of games on the Core HDX—as well as the legacy Platinum MPX, Player HD, High Rise and giant Texan HDX cabinets—features new game mechanics such as “Reel Match,” on the game El Dorado the Lost City, which randomly matches the symbols on one reel on another reel for a re-spin, all the way up to five wild reels. Other games in this year’s lineup present a unique mix of the game-play potential of the new platform and the kind of entertaining, humorous animation and game events that distinguished the former Multimedia’s slot games for years. One showcase for the new HDX platform is Bonus Attack, a game designed around a top-box bonus that occurs as frequently as every 30 spins. “This game is all about getting to the bonus,” says Conway. Once in the bonus, there are 10 levels of awards, won by landing a corresponding number of Bonus Attack symbols in a free-spin bonus. There also are extra spins awarded as players try to climb the bonus ladder.
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GLOBAL GAMES 2015
EVERI
A sister game is Jackpot Inferno, which features eight easily obtainable progressive awards, also won through free spins, but this time on a special set of reels that contains only high-paying symbols. The player also can land “Jackpot Jump” symbols for instant advances in jackpot levels. The first group of Core HDX Games—which also includes Quad Burst Tiger Strike—also includes a patentpending programming feature that allows for flexible return-to-player decisions by the operator through an adjustable bet/max bet configuration that does not rely on changing the number of paylines to adjust the RTP or bet levels. The programs include more than 200 balanced math models, so various percentage and denomination models will feature the same game volatility. Also, the games reward players for higher wagers. While progressives are available at any bet level, the reset levels rise as the wager rises. The Core HDX titles will be joined at the Everi booth by games in the Platinum MPX cabinet—popular in its own right for its 40-inch HD integrated touch-screen display, interactive sound chair with “Earthquake Shakers,” and custom 6.2 surround-sound system. Among the highlighted games on MPX this year is Smokin’ Hot Dice, which features a jackpot dice roll that triggers one of a multiple tier of progressives. Players touch the screen to roll the dice, to the backdrop of original honky-tonk music, and can win several jackpots at the same time. Pope notes that the dice roll is typical of Everi’s design credo for bonuses: “fun to play, easy to understand.” Many of those bonuses also reprise the kind of humor the company’s developers popularized long ago. A good example is Her Majesty, a hilarious take on Great Britain’s Elizabethan era featuring cutout animation from portraits of Queen Elizabeth, King Henry VIII and other historic royals, in bonus events like “Heads Will Roll”—the heads drop to the reels to add wild symbols—“Pester the Guard,” in which you pick annoyances to try to get the royal guards to change expression; and “Sink the Armada,” in which you get to fling everything from cows to boulders at ships in the water, to the backdrop of laugh-out-loud sound effects. Another entertaining entry is Rumpelstiltskin, on the Player HD platform (featuring dual 23-inch wide-screen monitors), with its funny central character and the “Guess My Name” bonus in which the player makes picks to try to assemble the legendary imp’s name in three tries. Free spins include “Straw to Gold” reel results, which change reels into wild reels. Throughout are funny little accents, such as Rumpelstiltskin moon-walking across the bottom of the reels. The Player HD format also hosts Viva Los Muertos, a humorous play on the Mexican Day of the Dead holiday that combines three popular game mechanics with a picking bonus hosted by funny animated skeletons; and Paris Le Magnifique, with a retriggering free-spin bonus that accumulates symbols toward a progressive jackpot. (Those symbols are miniature can-can dancers, also guaran56
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teed to trigger a laugh.) Sharing space between the Player HD and the super-sized Texan format is Pirates vs. Ninjas, featuring an entertaining cartoon battle in which the player advances prize levels by picking a warrior and consistently defeating the unpicked pirate, or ninja. On the big Texan screen, it’s like playing a video game on a theater screen. Rounding out the Player HD collection this year is Potion Power, featuring “Connected Pays;” and The Three Fates, with a picking bonus that determines a number of free spins, a multiplier and wild reels for a free-game event. The company’s tall High Rise cabinet also hosts strong new content this year, such as Journey to the Center of the Earth, which features a multi-level picking bonus with the object of advancing through different levels of the earth to get to the core, and the highest bonus (the “Motherlode”). Prizes in the picking bonus increase as the levels get closer to the core, with high-definition graphics and sound offering a compelling effect. Another standout in the High Rise series is Fruit Cocktail Deluxe, with a fun classic fruit theme and a top progressive that links with current progressives One Red Cent Deluxe and A Girl’s Best Friend Deluxe. Other video highlights include Live It Up! Diamond Bingo, an intriguing hybrid bingo/slot game that ties progressive jackpot levels to bingo-like patterns of symbols on the reel set; and Gargoyle, with very creepy, magnificent artwork in the reel symbols and a “Stay Until You Pay” wild-reel feature. Finally, Everi’s stepper series features Big Hit Cash, with a top-screen bonus game including perceived skill; and nine-line games such as Big Hit Cash, Shamrock and Blazin’ Triples. All are simple, high-denomination entries designed to introduce new concepts to the traditional reel-spinning space.
NEw IdENtIty While the game lineup represents a continuation of the quality customers came to expect from Multimedia, the G2E show itself is the first showing of what Lucchese notes is a unique composition among gaming suppliers. “We’re not strictly a games company, we’re not strictly a systems company, but a combination of great games and a leader in the payments industry,” Lucchese says. “We’re starting to socialize that with our customers, and listen to our customers, to what they’d like to see as our strengths come together and gel into a different strategy that the gaming industry has never seen. “That will take time to come to fruition, but again, we have a unique toolbox with the two companies coming together.” Palermo says that diversity and unique combination of disciplines is why he
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1 8 0 0 A T T O R N E Y S | 3 7 L O C A T I O N S W O R L D W I D E˚
Fresh Perspectives on AML in Gaming Greenberg Traurig’s Wendy Li will discuss anti-money laundering at the 2015 Macau Gaming Show left Chicago and IT to sign up with the new Everi. “I was relatively happy where I was, but this company is uniquely positioned,” he says. “Sometimes, playing by a different set of strengths is the way to move in a game.” He adds that Everi has the industry’s “only significant footprint of core participation,” thanks to its Class II history. “In a world where casino expansions are slim to none, post-boom, having a huge footprint of core participation is one of our greatest assets,” he says. The symbolism of combined forces was evident at the NYSE bell event in August, which included not only 15 executives headed by Chary on the podium, but 45 other Everi employees among the crowd on the floor. They were picked by raffle, and handed out Everi coffee tumblers and other gifts to the traders. (“Our marketing team, led by Linda, was bright enough to bring swag,” Lucchese laughs.) The event reflected what Lucchese calls a “renewed energy and sense of purpose” throughout the company, a “rallying cry behind all the expansion, with everybody collaborating to move the ball forward. “There’s a new excitement throughout the fabric of the company.”
Shareholder Wendy Li will be moderating a Banking, Finance & Investment in Gaming session at the Macau Gaming Show focused on the latest in BSA/AML and related financial issues of interest to gaming operators. AML prevention and enforcement is a primary gaming operation concern amid increasing anti-money laundering and anti-corruption efforts by regulators. Wendy brings to this discussion experience earned representing clients before the Federal Reserve Board as well as U.S. federal and state banking regulators. She counsels clients on domestic and international bank regulatory mechanisms and has assisted in the development of BSA/AML compliance programs for financial institutions.
Look for Wendy at the 2015 Macau Gaming Show in November!
Global Gaming Practice Acquisitions | Financing | IP | Labor | Litigation | Operations | Real Estate | Regulatory Learn more at gtlaw.com/gaming
GREENBERG TR AURIG, LLP | ATTORNEYS AT LAW | WWW.GTLAW.COM The hiring of a lawyer is an important decision and should not be based solely upon advertisements. Before you decide, ask us to send you free written information about our qualifications and our experience. Prior results do not guarantee a similar outcome. Greenberg Traurig is a service mark and trade name of Greenberg Traurig, LLP and Greenberg Traurig, P.A. ©2015 Greenberg Traurig, LLP. Attorneys at Law. All rights reserved. Contact: Martha A. Sabol in Chicago at 312.456.8400. °These numbers are subject to fluctuation. 26096
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IncredIble TechnologIes
Full Speed
Ahead
A growing library of hit games solidifies the market position of Incredible Technologies ooking at its growing success in the slot market, it’s easy to forget that Incredible Technologies has only been making slot machines for around five years. It was well-known that the Chicago-area company, the largest U.S. manufacturer of coinoperated amusement games and producer of the legendary “Golden Tee Golf,” had engineering and creative talent. However, since arriving at Global Gaming Expo in 2012 with its first casino games, the company has convinced a lot of operators of its acumen in producing highearning slot machines. The manufacturer approaches the big trade show differently than many slot-makers. You won’t see untested prototype games in the IT booth. According to Dan Schrementi, the company’s vice president of gaming sales and marketing, the decision was made early on to highlight only games that are proven earners. “We only bring proven product to the show,” Schrementi says. “That’s something our ownership lives and dies by. We are only going to bring games we know have some proven results.” Last year at G2E, the company’s evolution from amusement to gaming manufacturer got a boost with the introduction of the Infinity U23 cabinet, a state-of-the-art dual-screen platform with built-in digital signage support, bank lighting synchronized with game events and other bells and whistles. “On the backs of that, we’ve put together our best year yet,” Schrementi says. “We’re 100 percent ahead in revenue and product placement as of July, and we expect to be even beyond that by the end of the year.” Schrementi says scaling up to handle that increased demand has been challenging, but the effort is paying off. The company anticipated this growth two years ago by moving into a new, state-ofthe-art facility with dedicated gaming manufacturing in the Chicago suburb of Vernon Hills. However, the company’s explosive growth in Western U.S. markets, particularly California and Nevada, has necessitated partnering with a third-party manufacturer in Nevada, where Schrementi says half of the company’s casino games are now assembled. The company will certainly need the more localized assembly going forward—a very successful Nevada field trial of its games was completed in July, and the company has lined up corporate partnerships with major operators.
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tors to mix and match the best IT themes, placing core games in the super-sized Infinity Skybox, or adding progressives to them with Infinity Link. “The beauty of it is that it’s built right on the foundation of our same Infinity U23 cabinet.”
proveN LiNeup
Next Step IT’s rapid growth in the slot market has paralleled its evolution from amusementgame icon into a competitive slot manufacturer. Up until now, the company has succeeded in the for-sale market—“packing premium content into a for-sale box,” as Schrementi says—and that success has propelled sales in 17 jurisdictions, with the company about to enter six more at press time. The company’s first goal in the casino market was to achieve 1-2 percent share with for-sale products, and Schrementi says the company will easily achieve that and is ready for the next step. “To get larger as a company, we need to introduce new product segments that can take us beyond that 1-2 percent foothold into the next level,” he says. The vehicle for that journey? Infinity Skybox. The Infinity Skybox cabinet package, IT’s first new premium product segment, adds an eye-grabbing 55-inch vertical monitor to the basic Infinity product. An imposing 10 feet high, the package utilizes a modular design, including IT’s patent-pending Simple Sign Display Kit, with easy-to-install poles and mounting brackets to hold overhead video displays. IT will launch the cabinet at G2E with Crazy Money II, a new twist of the company’s flagship game brand. The Infinity Skybox will be flanked by Infinity Link, the company’s first linked progressive product. Infinity Link is a bank-wide linked local-area progressive utilizing the Simple Sign Display Kit with horizontal monitors and a smart controller that advertises jackpots, bonus wins and other merchandising effects. “This will allow us to have three major segments for sale,” Schrementi says. “As a company, the ship is sailing, and we’re pushing our product to reach that 1-2 percent floor share, but now the next step is to position ourselves for growth in the future.” He adds that the modular construction of the Infinity games will allow opera-
The Incredible Technologies lineup for G2E will feature its most extensive display yet, with a total of 40 slot games, including 24 new titles. At the head of the list is Money Rain, which has been the company’s runaway hit of the year. The game incorporates all the features of Crazy Money, the company’s flagship brand, and along with the sequel Crazy Money II and the fun Money Beach (picture the cash-portrait presidents with sunglasses), it will create what Schrementi calls the “Money family” of games. All of them have the familiar game interface of various bill denominations (with super-sized smiling presidents) as reel symbols. They also all feature the popular “Angle Pay” game mechanic, which pays big when high-paying bill symbols land in certain angles, and of course, the mainstay of the theme, the “Money Catch Bonus,” in which players touch the screen to “grab” flying dollar bills, revealing credit values behind each bill. Money Rain features an innovative reel mechanic called “Scatter Ways.” A smaller sixth reel locked during game play unlocks for the bonus to replace low-paying scatter symbols with the four highest-paying scatter symbols in a free-spin bonus. In the main game, the reels don’t spin; they flip—you know, like money. The game also incorporates IT’s “Good, Better, Best” bet setup, which encourages high line bets by increasing the number of free spins with each of three bet levels. Crazy Money II adds the Good, Better, Best bet feature, a four-level progressive and a giant bonus wheel to the original flagship product. The progressives are won via the “Mint Bonus,” which initiates a free-spin round on a bonus three-by-three reel array featuring only the top four symbols. Five or more gold coins on the reels during a free spin trigger one of the four progressive jackpots. The top jackpot resets at $5,000. All of the bonuses are accessed through a spin of the wheel—scatters trigger the wheel to decide which of the four events will take place. Rounding out the Money series, IT will highlight a high-denomination version of the original Crazy Money. Crazy Money High Denom features fixedbet options and operator-selectable denominations including quarter, 50 cents, dollar and $2. “We’ve had great success with our high-denom product, which is a niche segment,” says Schrementi, who adds that the company is offering a high-denom version of Money Rain as well, designed specifically for the VIP rooms. Schrementi says the money-themed family—all with the simple cash reel symbols, high hit frequency, low volatility and high-earning program math— has been IT’s “foundation for growth.” Part of the slot-maker’s “E Series” of games (for entertainment), it also has established the look and feel of the IT brand for players. “People are getting used to seeing our games, and these money symbols on the screen and knowing how the game’s going to play and feel,” giving IT the type of brand familiarity enjoyed by the big slot-makers. OCTOBER 2015 www.ggbmagazine.com
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IncredIble TechnologIes IT enters the hauntedhouse genre with Hauntsworth House, a 40-line game with cartoony animation showing different colored ghosts flying through Mr. Hauntsworth’s manor. Randomly during the primary game, ghosts will float to the reels to turn symbols into wild symbols.
Other G2E highlights include Big Prize Bubblegum, a nod to the childhood-favorite gumball machine. Part of the “I Series” (for innovation), the game emulates an old-fashioned gumball machine as brightly colored gumballs cascade through the reels to create big wins. Penny, nickel and dime coins landing on the reels trigger free spins in the number of the sum of the coin symbols, and free spins can retrigger up to 100 total. A “Bonus Toy” capsule landing on a free spin reveals a 3D picking game called “Pick Until You Pop.” The player selects from 30 toy capsules to reveal credit amounts and multipliers until revealing the “toothache” symbol. Schrementi says the game is “on fire” in the field, and could be the company’s next big hit. Launching the Infinity Link platform will be Bright 7s, which puts a twist on standard progressive awards with a feature called “Color Pays.” The progressives are triggered when any symbols of the same color—red, green or gold, identifying the corresponding progressive—fill the screen in any combination. The main bonus event can also land a progressive. Called “Super Power Tower,” four “mega wheels” are displayed on the screen. Each colored wheel features the chance to land the corresponding progressive or a “Level Up” slice, which moves up to the next-higher wheel. The object is to climb to the top to win the top Diamond progressive. Finally, IT enters the haunted-house genre with Hauntsworth House, a 40line game with cartoony animation showing different colored ghosts flying through Mr. Hauntsworth’s manor. Randomly during the primary game, ghosts will float to the reels to turn symbols into wild symbols.
lookIng AheAd Schrementi says having three new product segments will allow further evolution as a slot-maker, including the introduction of recurring-revenue products at some point to accompany the for-sale library. “No gaming company has really ever made it without having some sort of leased product,” he says, “but for us to get to the next level, we need to be able to offset our for-sale line with a premium line—whether it’s purchased or leased.” And, of course, the company’s executives are watching closely as Nevada and 60
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other jurisdictions move toward allowing skill-based games on the casino floor, an area in which IT is sure to have a leg up as its current fans—the company just celebrated its 30th anniversary—would certainly welcome a for-money version of Golden Tee Golf or other amusement hits. For now, though, the company will continue its evolution as a slot manufacturer, bringing games to the big show that have proven themselves on the casino floor, and spreading to new jurisdictions. At press time, the company was waiting for final approval to expand beyond its current footprint in the West, Midwest and South to Eastern jurisdictions including New Jersey, Maryland, Connecticut, New York, North Carolina and Ohio. The company also has an international presence in Macau, the Philippines and Peru. Schrementi says the company’s strongest U.S. market has shifted from the Midwest to the West—namely California and Nevada, where IT has corporate partnerships with Boyd and Station Casinos, and where IT games could be on the Las Vegas Strip by the end of the year through partnerships with MGM Resorts and Caesars Entertainment. Meanwhile, IT is ramping up its game development, with the goal of launching 24 games a year. “When we first got into gaming, everyone told us it would take 10 years to be successful,” Schrementi says. “We’re on year six, and this has definitely been the year of our explosive growth. “This is the time we’ve been waiting for. We have the right products and the right people—and the right performance.”
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GLOBAL GAMES 2015
INSPIRED GAMING GROUP
Adrenaline Rush Inspired Gaming to introduce three Virtual Sports entries at G2E as Nevada opens the market for the new games
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ook out, G2E—Mike Tyson is in the house. No one knows if the former heavyweight champ will make an appearance at the Las Vegas trade show this year, but he’ll be there in spirit—and via his digital avatar in Inspired Gaming Group’s new virtual boxing game. The lifelike betting experience is designed to make players feel they’re ringside at a title bout with Iron Mike. Rush Boxing will feature Tyson, going toe to toe with the great sluggers of the past. The game is reminiscent of a plot device in the 2006 film Rocky Balboa, in which the fictional Philly champ was pitted, in a virtual reality showcase, against Mason “The Line” Dixon, a young pug from a newer generation of heavyweights. In Rush Boxing, the rounds are vivid, entertaining, and can rival a genuine title fight for sheer fun and excitement, says Luke Alvarez, CEO of Londonbased Inspired Gaming. “We create ultra-high-definition, extremely lifelike graphical events that look and feel like a boxing match, a soccer match, a NASCAR race or basketball game,” says Alvarez. “These days, the graphics are so good, Virtual Sports are almost indistinguishable from the real thing.” Importantly, the products are adaptable to different jurisdictions, with outcomes generated from “a pure fixed-odds RNG, a lottery-style central determination results generator—whatever the regulation demands,” Alvarez explains. “Part of what’s special about what we do is that every race and match is new and every outcome is unique.” 62
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Inspired Gaming Group, one of the world’s leading providers of server-based gaming products, is an originator of the Virtual Sports category. In addition to Rush Boxing, at G2E the company will introduce two other new games under its Rush brand, Rush Stock Car Racing and Rush Basketball, designed just for the U.S. market. For the boxing game, the company signed a multi-year licensing contract with Tyson. The ultra-high-definition imagery was based on proprietary video footage of the champ in action, shot right in Las Vegas.
SPANNING thE GLOBE Inspired launched its Virtual Sports category at the turn of the millennium, and has since cornered the market it helped to create. “It’s a new thing in the United States, but we’ve been doing it in U.K. since about 2002, when we started in betting shops with horse racing,” says Alvarez. “Now we broadcast hundreds of sports every day: horse racing, virtual soccer matches, virtual greyhound races, car races, and so on,” in about 10,000 betting shops every day in the U.K., 7,500 betting shops across Italy, and 6,000 lottery shops in mainland China.” All told, the Virtual Sports line, which continues to add new titles, is available at 50,000 betting and lottery shops and casinos around the world, along with 300 web and mobile sites. The category generates an impressive $10 billion in handle per year in about 35 countries; in Italy alone in 2014, Inspired’s Virtual Sports products generated more than $1.5 billion in the first year, dominat-
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ing 95 percent of the Italian virtual sports market. In the last year, Inspired has also launched its Virtual Sports line in new markets including Georgia on Adjarabet’s website, in Kazakhstan with Olimp across online and retail, and in Belgium with the Circus Group’s online and mobile platform. In China, Inspired’s Virtual Motor Racing game “Lucky Racing” is the most popular lottery product in Hunan, and is available in more than 2,000 lottery shops in the Hunan Province. In addition, its Virtual Football or “e-Ball” game is live in more than 3,000 venues in Jiangsu Province, the largest sports lottery province in China. Inspired also recently signed deals in the Philippines and Colombia, and is looking to grow in AsiaPac and Latin America. Bringing the games to the United States is significant, says Alvarez. “We’re going to make a lot of noise about it at G2E,” he says. “After a few years of discussion, the Nevada Gaming Commission has approved virtual sports as a regulated category of events, so we’re working on going live in Nevada sports books in 2016. We’re also optimistic that we’ll be going live in New Jersey and other North American jurisdictions as they come on stream, both land-based and online, over the next 12 to 18 months.” Tribal operators and lottery providers on the continent have also shown interest, says Alvarez. It’s a good bet, as virtual sports accounts for an increasing percentage of bets in established markets, according to Phil Katsaros, Inspired’s head of business development for the Americas. “For instance, 20 percent of all bets in Italy and 10 percent of bets in the U.K. are now on virtual sports, and this figure is growing,” Katsaros has said. “We’ll look to replicate this success in North America.”
All Access PAss Virtual Sports is a growing channel, and for good reason: with the technology, fans no longer have to wait until Monday night or Saturday afternoon to enjoy their favorite pastimes; they can tap into a game, a match or a race at any time, in almost any location—from a favorite betting shop to a laptop computer to an iPhone or Android. The U.K. bookmaker Ladbrokes, for example, which launched Inspired’s Virtual Sports in 2,500 retail outlets in 2005 and went online in 2007, has recently added Virtuals on mobile. Its Virtuals revenues have doubled since the mobile launch, the company reports. Players today expect an omnichannel experience, available at the press of a button or swipe of a fingertip, says Alvarez. Inspired Gaming is committed to delivering that experience everywhere it is now regulated and sanctioned. The global company is also poised to integrate new markets as they open up, and also play a role in more widespread sports betting if and when it expands in the U.S. Though Alvarez isn’t holding his breath—“People have been predicting the launch of sports betting in the U.S. for many years”—he is certainly a more than casually interested observer of the debate. “Of course if it happens, we want to be part of that.” Since 2012, the globe-trotting CEO has focused on expanding into high-growth geographies, offering a line of “low-cost, wide-area” solutions tailored to meet the needs of large emerging markets. The campaign has been a success; according to a statement from the company, Inspired has tripled its international sales in recent years. —By Marjorie Preston
DISCOVER. SIMPLIFY. OPTIMIZE.
Visit CDI at Booth 3036!
OCTOBER 2015 www.ggbmagazine.com
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Forging Ahead Its merger with GTECH complete, IGT moves forward with strength and purpose IGT will display its portfolio of interactive solutions for desktop and mobile gaming at the show
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nternational Game Technology has spent well over two decades as the industry’s leading slot manufacturer. The company has a history of making the right moves at the right time—like acquiring Double Down just before social gaming took off—and has maintained the most extensive R&D regimen in the business. While IGT has remained the No. 1 slot manufacturer, though, its share of the international casino games market shrunk over the years from the ridiculous 75 percent share it enjoyed in the early 2000s. The reason, of course, was concerted effort by rival slot-makers to chip away at that market share. Last year, the merger of IGT and lottery giant GTECH brought new strengths to the company, including convergence of international lottery and casino markets. But it also brought one of the rivals that had been chipping away at IGT’s share into the fold—and GTECH’s highly regarded slots, themselves the products of that company’s acquisitions of former slot-makers Spielo and Atronic, are now part of the IGT universe. It’s all part of what the manufacturer calls the “Winning Combination,” the theme of the IGT trade-show collection this year. And the combination is formidable, indeed. Victor Duarte, the longtime GTECH executive who is now IGT’s global chief product officer for gaming, says diversity is the key. “We’re trying to build the deepest, broadest, most diverse portfolio of game content in the industry,” Duarte says. “That’s what’s driving the studios, day in and day out.” 64
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Duarte says the direction that portfolio ultimately takes will be up to the end-users of IGT’s product, the players. “Philosophically, our game design begins with the player,” he says. “We really are trying to be as attuned to player needs as possible. Our content managers already have a deep understanding of players, based on the research we do. We spend a lot of time researching players and understanding players, and that informs our game strategy going forward.” He adds that the IGT/GTECH merger allows the new company to leverage a truly global presence. Where IGT studios were historically centered in North America, GTECH has added global studios that allow the company to leverage new strengths. The GTECH library also adds strength in segments such as international casino games and VLTs in Canada and elsewhere, where the former GTECH had always concentrated its R&D efforts, says Duarte, who notes that a recent global game design summit brought legacy IGT and GTECH game designers together, and the dual game design philosophies merged together perfectly.
Premium Play Nowhere is that more evident than in the collection of premium branded slot games with which IGT arrives at G2E. Heading the list is Breaking Bad, on the CrystalCore 42 cabinet—the format including the 42-inch vertical LCD monitor that housed last year’s hit Ellen slots. Breaking Bad incorporates footage, sound and themes from the critically ac-
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claimed AMC drama about a chemist with terminal cancer who turns to manufacturing methamphetamine and the gangster life to provide for his family before he dies. Powerful imagery from the show finds its way to the reels of two base video slots, one with a free-spin bonus on which flag symbols activate up to three additional reel sets. One of the two base games features a multi-level progressive bonus in which higher wagers give the player better odds and raise the progressive levels. Other branded games on the CrystalCore 42 go much more for the laugh— especially TMZ, a hilarious take on the syndicated tabloid TV series featuring a cast of reporters delivering tongue-in-cheek gossip on the star entertainers of the day. One entertaining new feature of this game is that the player gets to be in the game. A “Photo Booth” feature has the player sit still for a head-shot photo, and in all subsequent bonus rounds, the player is one of the TMZ news crew (hosted through voice-over by the show’s producer and star Harvey Levin)—which bounces around in funny cut-out animation at the start of the bonuses. The bonuses all play out some scandal involving one of a select group of celebrities, including David Hasselhoff, Lindsey Lohan and other TMZ “regulars.” (In case you’re wondering, Charlie Sheen turned IGT down.) The bonus events are ingenious, from “Celebrity Spin,” in which a wheel bonus awards credits and gives one of the celebrities an “excuse,” to “Mug Shot Free Spins.” Another new licensed game is Orange Is the New Black, based on the Netflix comedy/drama set in a women’s prison. This one is on the two-game CrystalCore Duo format, with two different base games under a common LCD display for bonuses. Bonuses begin and finish with a clip of a scene from the acclaimed series. Music also is a big part of the game—it is synchronized with lights across the different machines. Additionally, Orange Is the New Black represents the first simultaneous game launch in land-based casinos and the DoubleDown social casino, Duarte says. Finally, the CrystalCore Duo is used to great effect on a new version of Jurassic Park, featuring a T-Rex bonus in which the player selects matching symbols for moves by the player and the dinosaur as the T-Rex chases the player. (The high-definition video is outstanding on this.) It also features reels that expand up to 10 rows high for free spins, utilizing all the real estate of the 42-inch monitor. Rounding out the licensed offerings on the tall G23/32 cabinet is a new entry for IGT’s series of games based on the Dark Knight Batman films. The Dark Knight reprise this year features three reel sets with wild symbols jumping among them, and base games centered around the films’ characters heralding “Heroes” and “Villains.”
One of the highlighted games this year is Bubble Craze, which employs a unique video game screen comprised of bubbles instead of classic reels. true 3D The GTECH merger augmented the technology of IGT slots in many ways, but perhaps none more significantly than bringing the former GTECH’s groundbreaking “True 3D” technology into the IGT library. GTECH wowed G2E attendees two years ago with the launch of Sphinx 3D and its technology, which is the most authentic three-dimensional effect ever to be used for a slot machine—and the best 3D effect without 3D glasses to be had anywhere. True 3D features an adjustable effect for those who may get motionsick from watching characters move around dimensional scenes. The effect even takes movements of the player’s head into effect. In Sphinx and several other games launched at last year’s G2E, the True 3D effect is mesmerizing. IGT officials decided to launch True 3D under its own brand in grand style, applying the technology to the most successful game in its history, Wheel Of Fortune. Wheel of Fortune Double Diamond 3D uses the True 3D technology to present an animated replica of a classic stepper game. It uses the traditional Double Diamond symbols and math model in a three-reel, five-line configuration, with a fourth reel added as a bonus reel. IGT has added bonus events on the main screen and on a 39-inch top LCD monitor with full HD resolution. When a bonus is triggered, there is an animated transitional sequence in which the reels appear to drop off the machine to provide a new bonus window. There are several different bonus events. In one, 3D coins fly off the fourth reel and hover above each reel until the player selects one to reveal an award. There is a Puzzle Bonus in which the player solves the familiar Wheel Of Fortune puzzle. The central Wheel Bonus takes place on a 3D touch version of the iconic wheel from the TV game show. Free-game bonuses and the Wheel of Fortune wide-area progressive round out the package on the game, designed for dollar and higher denominations. While the new Wheel of Fortune game makes True 3D an official IGT technology, several other games on the former GTECH platform ProdiGi Vu will be highlighted at G2E. Three new games using the True 3D technology draw on popular titles of the former GTECH, including Cash Fever Wild Nurse, Plants vs. Zombies 3D and Return of the Sphinx 3D. Cash Fever features the familiar bonus “thermometer” and a popular feature
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Wheel of Fortune Gold Spin presents the classic stepper version of the game, but with bonuses utilizing the reels, an LCD bonus screen and the famous bonus wheel.
that increases stacked symbols, and therefore odds, as the player bets up. Plants vs. Zombies, one of a series of titles licensed from PopCap Games, includes a funny bonus in which plants on one side of the screen try to shoot all the zombies on the other side before they can approach and “eat the player’s brains.” Return of the Sphinx gives the 3D treatment to one of the former GTECH’s most popular titles, one that is still in the field and performing well seven years after its launch. Other games on the former GTECH platform include Grit, Guns & Gold, a Western-themed 88line game on curved video reels; and A Reef of Riches, which has the reel set floating over an ocean scene—taking the player underwater for the freespin bonus. As for the Wheel of Fortune franchise, the series will launch several non-3D iterations at G2E as well. Wheel of Fortune New Orleans uses the new CrystalWheel cabinet, which places the bonus wheel atop two 23-inch high-definition touchscreen displays. A Mardi Gras-inspired symbol set and engaging base game play mechanics include stacked symbols and multiplier wilds. In a progressive bonus, players can spin a touch-screen virtual replica of the famed wheel for one of the game’s five multi-level progressive jackpots. Wheel of Fortune Ultra Wheels pairs the wheel spin with Ultra Wheels’ unique MultiPLAY interface, which features four wheels instead of reels with a multiplier pointer, boost feature and jackpot wedge. A multiplier pointer appears with each spin and may point to one of the four wheels and multiply the value up to 10X. Progressives are awarded when a jackpot wedge is displayed on wheels two, three and four. Finally, Wheel of Fortune Gold Spin presents the classic stepper version of the game, but with bonuses utilizing the reels, an LCD bonus screen and the famous bonus wheel. “Brands matter to IGT, and we’re going to continue to maintain a robust strategy there,” Duarte says.
Core Strength IGT’s group of video and reel-spinning slots in the company’s Core Games group remains as strong as ever, with 60 video titles and more than 40 stepper titles to be launched at G2E. One of the highlighted games this year is Bubble Craze, which employs a unique video game screen comprised of bubbles instead of classic reels. Bubble Craze uses a unique setup of 19 independent reels in a hexagonal
format, on the CrystalDual cabinet. A “Cluster Pays” feature returns wins in the base game and free-spin bonus, the latter of which provides a guaranteed win on every spin. For big win potential, the Transformer Bubbles feature and the Multiplier Bubbles (2X to 5X) multiply any wins in their cluster by their multiplier. Other core video standouts include DaVinci Dual Play, which combines two of the popular DaVinci Diamonds games into a dual-play format with symbols cascading from the top to bottom reel set; Wild WindUps, which has classic wind-up toys as symbols that randomly turn other symbols wild; and the Mythical Warriors series, which features the first three-by-three (three reels, three rows of symbols) video setup since the legendary Texas Tea. In IGT’s traditional stepper series on the S3000 cabinet, highlights include Mucho Dinero, a classic three-reel, five-line game for quarter, dollar and $5 denominations. Other reel-spinners include 7s With Peppers, including a feature that multiplies one of five progressive jackpots awarded by two or three—depending on the number of peppers gracing the jackpot symbols—Hot Hits, with a frequently hitting nine-level progressive; and Three Play Double Diamond, which stacks three sets of classic stepper reels atop each other in a nod to the classic IGT game Totem Pole. Another of the featured S3000 steppers is Red Hot Tamales. Based on the player-favorite math model of Gold Bar 7s, the game introduces a three-reel, 27-payline configuration set for multi-denominational game play. The “Blackout Pays” feature awards progressives when all reels are covered with red or yellow 7 game symbols. “S3000 has been a great success, because it maintains the classic elements of steppers along with new technology,” comments Duarte. “We certainly have reason to be proud of that product, and the plan here is just to continue to add to the product roadmap. “We have a lot of legacy mechanical reel product that can be brought forward onto this platform and enhanced. Operators always tell me, ‘more titles on the platform.’ So, that’s what we need to do—bring the legacy library forward to the new platform, while continuing to innovate and create new themes and math models.” OCTOBER 2015 www.ggbmagazine.com
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Poker king IGT, of course, was the company that invented video poker, and thousands of its original video poker variations are still on the floor, unchanged for more than 30 years. However, that doesn’t mean the company has rested on its considerable video poker laurels—particularly since IGT began partnering with Action Gaming to present multi-hand versions of all of its legendary video poker variations and collaborations that present totally new takes on video poker. This year is no exception, as IGT arrives at G2E with a collection of innovative new video poker titles. Among the highlights is Super Hand Poker. With a side bet made, the player is dealt three hands from different decks, instead of duplicate hands as in Triple Play Poker. The player or the computer picks the best of the three hands—the “Super Hand”—and that hand is tripled for the draw from three different decks. Also highlighted is Triple Chance Bingo Poker, which features a custom game design developed specifically for the electronic bingo market. The poker theme features one five-card draw poker hand, which is dealt face up on the bottom; and two five-card stud poker hands, which are 10 cards dealt face down. For big-win potential, players have the opportunity to win a 2X to 5X multiplier on the bottom hand of the deal, and on the stud hands on the draw. Other standouts include Pyramid Poker and Powerhouse Poker. Pyramid Poker combines stud and draw poker. Five draw poker hands are dealt at the bottom of the screen, and then four additional stud poker hands are dealt from the top to the bottom of the screen with one card, two cards, three cards and four cards stacked in a pyramid. The player draws to the bottom hand and the top hands pay according to a stud pay schedule. In Powerhouse Poker, any dealt winning hand is integrated into the top box, accumulating up to nine extra hands, with random 2X multipliers.
SyStemS, tournamentS and light ShowS IGT will display its portfolio of interactive solutions for desktop and mobile gaming at the show. The company will demonstrate OnPremise, an integrated mobile technology solution that modernizes gaming and sports betting experiences and enables players to wager via a single mobile app anytime within set boundaries. IGT also will spotlight the company’s Play-for-Fun solution, under which the supplier collaborates with casinos to create branded free-play websites. The company also will spotlight two interactive MegaJackpots titles, MegaJackpots Cleopatra and MegaJackpots Siberian Storm. These multi-game, multi-channel progressives link play on desktop and mobile devices to a single progressive jackpot, where liquidity grows quickly to generate bigger jackpots that players can win anywhere they play. But perhaps the company’s most groundbreaking systems-supported innovations come in the form of a new tournament solution and a new customiz68
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In Powerhouse Poker, any dealt winning hand is integrated into the top box, accumulating up to nine extra hands, with random 2X multipliers. able promotional system for casinos. IGT has had its TournXTreme instant tournament system for several years, but this year, the company placed its engineers on a mission to scope out every instant tournament system in the industry—including the innovative TournEvent system by Everi—with the goal of doing better. The result is Spin-Ferno, a tournament solution that enables instant tournaments on dedicated stepper slot machines that also are top-earning stand-alone games in their own right. “We consider Spin-Ferno IGT’s first-ever premium tournament package,” says Duarte. “This is the first time we’ve really created a tournament package that includes the systems and machines in a highly integrated way. It combines Tournament Manager 5.0 with the S3000 cabinet. The reason I feel it is leapfrogging what I’ve seen to date in the tournament space is that it includes all the popular features of those systems, and combines a top-performing set of products in coin-in mode that I don’t think our competition can touch.” Unlike other systems, Spin-Ferno can be used for a single casino or a multisite tournament. Operators can use the Tournament Manager 5.0 system at a central data center to link games between properties for tournaments. The base games are classic three-reel steppers in the S3000 cabinet, but with touch-screen video overlays that allow for a wealth of in-game opportunities to boost one’s score. The result is a wild ride during the tournament, with icons popping up all over the reels within the players’ reach—a frenzy of activity when compared to old-fashioned, repetitive button-pushing in slot tournaments. Integrated leaderboards constantly update the scores during the contest, creating even more ex-
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citement around the games. Other features include quick registration using mobile devices, instant conversion to in-revenue mode at the end of the contest, and a synchronized sound and light package that has the games in the tournament bank pulsing in unison. This last feature was first seen at last year’s G2E, when banks of the new S3000 steppers conducted a synchronized light and sound show to draw attendees to the area. This year, IGT expands on that concept with a compelling marketing tool for casinos it calls SyncSation. SyncSation—designed by audio-visual wizard Kyle Rothschild—allows operators to create an on-demand, synchronized sound and light show customized to any event, season or theme, on any group from a single bank of machines to all the machines on a slot floor. The new system, available in Gold, Silver and Bronze packages—the Gold package enables 150 different synchronized shows—is evolving even before its formal launch. IGT has been working with operators to create different types of synchronized sequences that will be displayed at G2E. Attendees will see groups of slots with lights and bezels pulsing to holiday music, hits of a casino’s headliners, “Hot Zones” to which operators want to drive business— just about any sequence imaginable. The light and sound shows can be scheduled for any period. In one demonstration, a New Year’s Eve sequence counts down from 10 as the big hour approaches, launching all machines into a synchronized rendition of
“Auld Lang Syne” at midnight. The future of this system is still being built, as IGT and operators explore possibilities of linking game events and floor-wide bonuses to the light-andsound celebrations. “SyncSation allows you to create a unique presence on your casino floor,” says Duarte. “We’ve integrated it into a number of our newer cabinets, to create quite a presence.” The first combined G2E display for IGT since the GTECH merger is designed to make a splash, and splash it will. The company is designing the show to reassert its dominance of the slot floor, and all indications are that is just what it will do. Moving forward, Duarte says IGT will continue to integrate teams and technology between the two legacy companies. “There is so much potential,” he says. “It’s not quantifiable; we have to work on common technologies but leverage the diverse talent base we have. The full combination of that talent is tremendous.” In the longer term, he says the company will identify ways to enhance product lines such as True 3D and others, injecting new technology such as crowd detection—a game can recognize when players are hovering near a machine and encourage them to sit down. “Those kinds of applications are available because of the technology we’ve integrated into 3D, and we’re looking at new technologies and applications to integrate into all our product lines going forward.”
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Making Noise Konami Gaming continues to refine its in-house brands while calling on its video game roots mid all the upheaval last year in the slot supply sector, a few companies—like Konami Gaming—simply concentrated on doing more of what they do best, building on prior success without mergers, acquisitions or new subsidiaries. That’s not to say Konami sat idle while others evolved to meet the changing market. Quite the contrary, in fact. Konami Gaming, the U.S. subsidiary of the amusement and gaming giant Konami of Japan, has spent the past year preparing to meet soaring demand for its products in the U.S. The company has completed construction to double the size of its Las Vegas facility, adding 200,000 square feet of plant space and renovating the 160,000 square feet in the original facility. The expanded corporate campus houses management, assembly and a central U.S. research and development team that regularly collaborates with R&D teams in Japan and Australia. Konami’s G2E booth will cover 11,000 square feet, but Matt Reback, vice president of marketing at Konami Gaming, says the real distinguishing factor of Konami’s product this year will be consistency. He says the absence of corporate upheaval is a key to the company’s success, through “consistency in management and continuous dedication to quality.” He says the slogan for Konami at G2E this year is, “You don’t have to shout to make noise.” Konami, he says, makes noise not with a “cacophony of brands,” but with its products. This year’s G2E follows a familiar pattern for the company, as existing product lines are augmented, a new hardware platform is launched, and new game ideas draw on the video game pedigree of the Japanese parent company to inject skill factors into games that will please the younger demographic just coming into the casino market.
A
The ConCerTo Hardware has been one of the keys to Konami’s rise from relative obscurity in the U.S. casino market to become one of the top slot-machine manufacturers in the industry. Cabinets and slot formats from Podium to Advantage Revolution, from Rapid Revolver to Podium Monument, Podium Slant, Podium Goliath and others, have housed the innovations that have propelled the company forward.
That tradition continues at this year’s Global Gaming Expo with the launch of the Concerto cabinet—a video cabinet, the company’s launch literature says, “characterized by a purely magnetic quality in its design, investment value and aesthetic attraction.” The new cabinet features twin 27-inch HD game screens set against a smooth black surrounding surface, which “creates a very cinematic experience for the player,” says Reback. “We chose black for the Concerto’s surface so everything but the game disappears, like you’re in a cinema,” says Steve Walther, Konami’s director of product
“What the Concerto cabinet delivers is a collection of multi-sensory components for a harmonious player experience that is memorable and entertaining. That was the spirit behind how we named Concerto.” —Matt Reback, VP of marketing, Konami Gaming
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Hardware has been one of the keys to Konami’s rise from relative obscurity in the U.S. casino market to become one of the top slot-machine manufacturers in the industry.
management. “Gone is the chrome—there are chrome elements on the outside, but they disappear when you play.” Walther adds that the extra real estate on the cabinet and top box was added without surrendering any operator flexibility. “What’s unique in the Concerto upright is that its twin 27-inch horizontal high-definition monitors still manage to fit onto a standard base for an upright,” he says. Other strong features of the Concerto are signature holographic side lighting elements and a 19.5-inch video topper. “Those elements are a way to capture people’s attention from across the room, but when you sit down, everything but the game disappears,” Walther says. “The digital topper can display the game theme, logos, marketing messages like ‘hot new game,’ etc., and also has lighting elements synchronized with the game theme itself.” Walther adds that the new “DynamicDash” digital LCD button employs haptic feedback to give the player the feel of old-fashioned buttons, only with animation, and instantly changeable appearance and content—and without the operator headaches of button failure. “It’s a nice combination of letting the players feel the buttons and being able to customize the content,” he says. “What the Concerto cabinet delivers is a collection of multi-sensory components for a harmonious player experience that is memorable and entertaining,” Reback says. “That was the spirit behind how we named Concerto.” Along with the new cabinet comes the next evolution of the core game platform for Konami’s slots. The original KP2 video platform, launched in 2006, has been identified by many as the main reason for Konami’s success since then. It was enhanced a few years ago with the introduction of KP3, and this year, the company introduces the KP3+ platform, a further enhancement of its basic video technology. KP3+ features enhanced processing speed, and a variety of changes to basic game features that are the result of customer feedback, Reback says— such as replacement of the line-based maps to show where players have won with easy-to-understand squares framing the reel spots, and new game mechanics for the KP3+ titles. “The best thing is that KP3+ will run the entire library of KP3 games at launch,” Walther says. Even so, Konami has designed launch games specifi-
cally for the new platform. Heading those at G2E will be Radiant Queen and Fortune Stacks. Radiant Queen is an original-math Roku Reels Xtra Rewards game with nudging full-reel wilds during the freegame feature, as well as a “gigantic symbol” feature, creating effective symbols stacks by extending a giant symbol over several reels. Fortune Stacks is a five-reel game that adds bonus multipliers to Action Stacked Symbols appearing on reels 1 and 2 during the free games. “These KP3+ Concerto games leverage the dual screens with larger-than-life art and animation unlike anything before,” Reback says. “Everything vividly flows and interacts, from the video topper to the button panel, to the holographic side lighting, really leveraging the KP3+ platform in the best way possible. But at the same time, operators can still place their proven KP3 top performers on Concerto, so it’s a very versatile machine for whatever content and configurations they need.”
Playing on Strength While the new Concerto cabinet adds another dimension to Konami’s G2E offerings, three highlight games in this year’s collection exploit the strengths of another Konami platform, the Podium Monument, with its oversized display on a tall top box surrounding a 32-inch vertical monitor. Expanding on last year’s hit release of the two inaugural “Dungeons & Dragons” slots, based on the legendary Hasbro role-playing game, Konami is introducing four new themes for the series on the Podium Monument. The new titles, featuring dungeon maze bonuses, monster battles and a full medieval merchant city to explore, are distinguished by custom bezel options for each title—a brick bezel, a fire bezel and a marble Waterdeep city bezel. In Dwellers of the Dungeon Keep, players continue their campaign from the first series through the eyes of a female archer character, armed with magic flying arrows to help conquer the monsters that awaken in the game’s fourlevel progressive bonus feature. The random outcome of her battle is animated through the spins of a 20-sided die—a core mechanism of the classic table-top game—and her victory helps determine the potential progressive award.
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In Fortunes of the Forgotten Realms, players explore the depths of the dungeon, and during a mystery dungeon bonus, players navigate through the darkened caverns, encountering treasures, traps and monsters through the eyes of the game’s stalwart dwarf character. Fortunes of the Waterdeep allows players to collect 12- sided dice for a chance at one of four progressive jackpots. “What we’ve done with these two games,” says Walther, “is to continue along the journey we started in the original Dungeons & Dragons, which featured the forming of an adventuring party. That party has now reached a true ‘dungeon’ in D&D lore.” But the fortune hunt inside the game is the really fun part, he says—a journey through a maze, finding treasure, falling into a trap occasionally, but most of all, battling monsters for progressive prizes. The player chooses which direction in the maze he will take—the events are random, but players feel they are affecting the outcome. Walther says the company drew more than 13 monsters “from the deep Dungeons & Dragons universe” to create a game any aficionado of the famous role-playing game will appreciate. In addition to enhancing the game series based on the Dungeons & Dragons license, Konami this year continues to tap its legendary arcade and home video expertise, and beloved titles it already owns through its Konami Digital Entertainment unit. Last year, the company introduced the first slot based on its Neo Contra video game. This year, players will participate in a bonus event involving navigating a certain familiar digital frog through traffic in a video slot version of the legendary Frogger arcade hit. The company will launch two debut Frogger game themes, called Great City Wilds and Woodland Wilds. Each will feature a bonus event on the classic Frogger street-crossing course. Both games feature four-level stand-alone progressive jackpots and the company’s trademark “Action Stacked Symbols.” When the random Frogger bonus is triggered, tractors appear on the screen and push the reels away to reveal the classic Frogger course. The player gets three “lives” to get through the traffic to the top bonus, as the frog hops its way toward the top-box monitor. (It’s not the skill-based arcade game, but it hits all the buttons for Frogger fans.) Woodland Wilds adds a free-spin bonus that uses the top screen. Players can win up to 20 free games, with two additional reel sets added on the top screen. Any full-reel wild symbols appearing on the upper-most set of reels are copied across the rest of the upper screen. “Frogger is one of Konami’s oldest and most loved video brands,” comments Walther. “You’ve played the frog going across the street. This immerses you in the Frogger experience in the bonus, but it also is a great slot game—it’s got nudging wilds, wild reels, and free games that open with two additional sets of play areas, creating three unique playing fields. When frogs appear in any of the 72
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“Frogger is one of Konami’s oldest and most loved video brands. You’ve played the frog going across the street. This immerses you in the Frogger experience in the bonus, but it also is a great slot game—it’s got nudging wilds, wild reels, and free games that open with two additional sets of play areas, creating three unique playing fields. When frogs appear in any of the playing fields on the top monitor, they jump down to the play fields below. It’s really a lot of fun.” —Steve Walther, director of product management, Konami Gaming
playing fields on the top monitor, they jump down to the play fields below. It’s really a lot of fun.” Konami also will introduce two new titles for the Neo Contra series at G2E. Featured on a custom version of the Podium cabinet featuring an expanded top box, a dual topper and Konami’s new “Symphonik 3D Sound,” titles include Samurai Strike and Warrior Reloaded.
RapidLy REvOLviNG The new Podium Monument title will be flanked at G2E by new titles in another unique Konami platform, the Rapid Revolver cabinet. Around the same size as the Podium Monument, the distinguishing factor of this hybrid video-mechanical cabinet is the central display of stacked mechanical drums, which spin horizontally in a bonus display. Highlighting the new Rapid Revolver games is Lucky Sticks, Konami’s first stand-alone progressive game for Rapid Revolver that can be combined with almost any KP3 base game on the lower screen—titles featured at G2E will include Riches With Daikoku, Lotus Land and China Shores. Lucky Sticks is a mystery trigger bonus that transports the player to an animated fortune-telling game reminiscent of the Chinese Kau Cim, whereby engraved sticks are selected from a tall bucket to reveal hidden messages. Lower video reels activate the upper mechanical drums and assign random multipliers. According to Walther, Lucky Sticks will run on 95 percent of Konami’s KP3 game library. Other highlights in the Rapid Revolver format are Fortunes of the Waterdeep, which allows players to explore the fictional city of Waterdeep in one of the new Dungeons & Dragons releases, and a new game called Prophetess of Fortune, similar to last year’s debut releases in the format, Rising Dragon and Northern Treasure. Prophetess of Fortune uses the lighted upper drums for added effect in the bonus feature but adds a new multiplier mechanic that boosts wins up to 100X. Progressives, in fact, will be something of a theme for Konami at this year’s
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KONami GamiNG The volcano—to be particularly imposing at the show, thanks to the giant Podium Goliath cabinet—randomly smiles, gets excited and throws lava rock down to the reels to turn them wild.
G2E show. New progressive links applicable to most of the Konami library include Brothers of Fortune, in which a wheel determines the credit prize; Wheel Boost, another wheel-based progressive; and Riches Choice, in which a picking game with upgrades determines the progressive prize.
COrE VidEO In addition to all the specialty cabinets, there is no shortage of new titles for Konami this year in its core video slot group on the Podium cabinet. Up front is Lucky Honeycomb, released near the end of summer. For fans of the classic Dragon’s Law Xtra Rewards game, Lucky Honeycomb is a clone title that replaces the iconic long-tailed dragon character with a friendly honeybee character. Randomly before or after any spin, he flies down to the lower screen to scatter extra wild symbols. A new version called Lucky Honeycomb Hot Boost will be launched at G2E. Golden Pumpkin is a new five-reel game that allows players to choose their own volatility during the free games. Players have the option to choose fewer free games with higher random multipliers, or more free games with lower multiplier awards. Mayan Carnival recreates a Caribbean festival motif and animated full-reel wilds. It is one of Konami’s newest “MultipleLines” 4-5-5-5-4 games. Any three or more pyramid symbols trigger the free-game feature, and any additional pyramid symbols appearing during the free games award “Super Free Games,” highervalued spins played after the free games are completed. Nudging full-reel wilds appear in both free-game features. Splendid Butterfly is the newest addition to Konami’s “Reeleven” series of 11reel games—two traditional reels alongside nine independent position reels. Animated purple butterflies are the primary method for transforming the game’s obscured Action Stacked Symbols throughout. The game also includes a gigantic 74
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symbol feature that allows players to complete pieces of a puzzle for increasing awards. Majestic Diamonds is the latest in the company’s “Roku Reels” series, with bonuses and mechanics created for a six-reel format. The game’s wild symbol—a crowned Queen character—carries rich line pay awards, up to 10,000 credits times bet per line. In addition, during the free-game feature, at least three consecutive reels, beginning with the left-most reel, will be enclosed by a golden frame with the same symbol in all positions. Other standouts include Volcanic Rock Fire, in which a volcano takes on an animated personality (think of the apple tree in The Wizard of Oz). The volcano—to be particularly imposing at the show, thanks to the giant Podium Goliath cabinet—randomly smiles, gets excited and throws lava rock down to the reels to turn them wild. “This one’s going to be hot,” says Walther, with no pun intended. “It’s unique, it’s got a great graphic, and it’s my sleeper hit of the show. This will be our show-stealer in standard themes.” While this section is called Global Games, Konami’s systems business, centered on the popular Synkros casino management system, is spilling over into the realm of games this year. Synkros now launches integrated loyalty promotions seamlessly across full-screen video slots, mobile devices and kiosk stations through the SYNKiosk module. At G2E, Konami also will launch Synkros Progressive Management, or SPM. It is a single interface within Synkros for defining, configuring, launching and maintaining system-controlled progressive games across any slot machines with “Synk Box” hardware. SPM is integrated into Synkros to provide multiple configuration options spanning standard pay table progressives, mystery triggered progressives, carded mystery triggered progressives, and multi-game/single-game cabinet specifications. For the future, Walther says Konami is working hard to design new games that will not only appeal to the company’s core players, but to incremental players outside of the current demographic. This includes not only games like Frogger and Dungeons & Dragons, but new titles such as Chart Topper and Sakura Lady, which feature Japanese anime artwork and characters. “We’ve experimented with pseudo-skilled games, and every time we go outside the demographic, we do collect some incremental players,” he says. “But our core players respond best to our games. So, we’ll continue to push the envelope.”
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Global Gaming Business
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June 2015
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GLOBAL GAMES 2015
NOVOMATIC GROUP
On to
America
Novomatic seeks to transform its European success to North America lthough Novomatic Group enjoys a well-deserved reputation as one of the industry’s leading multinational suppliers of games and systems, the success it’s achieved in markets worldwide has proven elusive for it in the largest market of them all, the United States. The Austria-based giant is more determined than ever to change that, and visitors to the 2015 Global Gaming Expo will be getting a firsthand look at the innovations that will be leading the charge. Actually, the first major steps were taken a few years back with the establishment in Florida of Novomatic Americas Holdings and the hiring of U.S. industry veteran Rick Meitzler as vice president of sales. Meitzler, who calls the Chicago area home, had shepherded Australia’s Ainsworth Game Technology into North America and later headed Midwest sales for Bally Technologies. When Meitzler formally took the helm at Novomatic Americas as president and CEO, the company pulled up stakes and headed north for the shores of Lake Michigan, setting up a base of operations west of Chicago with plans now in full gear to expand into new, larger facilities in Cook County proper, just 20 miles north of the Windy City and close to O’Hare International Airport. Of course, none of this means much without the product to support it, which is why Novomatic is turning its prodigious R&D capacities toward the development of an array of new games and game systems that look to be well-timed for an industry in the throes of a tectonic demographic shift. Age is decimating the slot floor’s traditional player base, and those who are playing are spending less. Younger demographics weaned on the immersive realism and fast-paced competitiveness of digital entertainment aren’t lining up to succeed them. Needless to say, casino operators and manufacturers are having to rethink established notions about what machine games are and what they’re supposed to do. Enter Novomatic, whose roots in the demanding soil of capacity-constrained Europe, where electronic table gaming was born, have enabled it to spread its branches far and wide—in Latin America particularly, though hardly exclusively—by virtue of a unique approach to hybrid technologies that excels at developing platforms for blending texturally rich slot gaming with top-notch automated table action in very player-friendly ways. When visitors to G2E descend on the Sands Expo & Convention Center in Las Vegas for the three-day super-show commencing on September 29, they’re going to find the company’s latest ideas showcased within an expansive two-story exhibit where a live DJ will be spinning the music and ratcheting up the excitement. Their first stop is likely to be the Dominator Curve, the next generation of the popular Dominator triple-screen multi-game cabinet that takes as its point of departure a single, smoothly concave touch-screen monitor that stands a whopping 40 inches from bottom to top.
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The beauty of the Curve’s inward slope is that it reflects the action directly at the focal point of the player’s view, delivering a one-of-a-kind experience that’s eminently satisfying ergonomically and comes supported by high-definition LED backlighting, color effects synchronized for each game and a satellite speaker system with subwoofer for theater-quality sound. The Curve sports its predecessor’s innovative TouchDeck interface (available in a variety of button panel layouts), together with the same extra start button built into the foot rest. And like the Dominator, it’s TITO-ready, supports multiple denominations and can be configured for multiple languages. Innovations popularized by the Dominator also include a pre-installed player-tracking module conveniently located just below the screen and an inward-opening main door that makes maintenance safe and easy and opens up more space between cabinets, a real value-add considering that the Curve is just as space-saving as its predecessor, weighing in at a slender 640 millimeters in width with a total depth of only 637 millimeters, including the base stand. And the Curve is scalable, with an independent 18.5-inch multi-purpose TFT topper available as an option and a purpose-built four-level stand-alone
The chair—the Crown V.I.P., as it’s called—has speakers built into it for a realistic surroundsound effect and “Auto-Start” and “Start/Take Win” buttons within easy reach at an arm rest.
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GLOBAL GAMES 2015
NOVOMATIC GROUP
Novomatic acquired Greentube in 2010, a smart move for a company that enjoys a geographic diversity few manufacturers can match. The group’s presence encompasses more than 230,000 machine games in 80 countries, and it has locations in 50 of them, a reach that extends to more than 1,500 casinos and gaming venues on five continents. progressive that renders the platform, as Novomatic calls it, the “perfect plug-and-and-play solution.” Exclusive to this are two 25-line base games, Lucky Rose and High Roller, developed specially for the Curve with jackpots that top out, respectively, at 5,000 and 2,500 times the bet per line. Then there’s the NovoStar V.I.P. slant-top. Few U.S. operators have seen it, though it’s turning plenty of heads in other parts of the world. This is a high-end theater experience that invites the player to get comfortable in a plush, high-backed captain’s chair for gaming and a 27-inch TFT touchscreen enhanced with a second, giant 50-inch HD screen ideally positioned behind the cabinet to deliver a panoramic view of the action. The chair—the Crown V.I.P., as it’s called—has speakers built into it for a realistic surround-sound effect and “Auto-Start” and “Start/Take Win” buttons within easy reach at an arm rest. On the upper level of Novomatic’s exhibit it will be the Novo Line Novo Unity II. Three live dealers will be working the Novo TouchBet Blackjack, Roulette and Live-Baccarat offerings of this unique EGM/EGT multi-player hybrid that can be configured for both individual and group wagering. The Novo Unity II’s core strength is the high-performance versatility of its NovoStar SL touch-screen play terminal. The brilliance of the SL’s LED details and satellite sound make it a standout on any floor, and it can accommodate up to three wide-screen monitors in comfort, which makes it the perfect vehicle for a portfolio of 23 player-selectable Coolfire II and Indigo Novo Unity II slot titles. And Class II and racino operators will love the fact that it can also be adapted for server-based video lottery play. Another new idea in slot-table hybridism will be on display in the form of Panther Roulette II, the successor to the innovative Pinball Roulette, where players get to launch their own game ball. On the Panther, players can toggle from table game to more than 20 slot titles. Two new major jackpot systems also will be displayed: Magic Joker, which debuted earlier this year at London’s International Casino Exhibition, will be 78
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featured on the Dominator. Book of Ra Jackpot, based on the hugely popular game of the same name, will appear on Novomatic’s flagship upright, the Super-V+ Gaminator. All told, it’s a full-court press by Meitzler and his Americas team to take Novomatic to the front ranks of the U.S. market, and it’s leaving no market or product realm unexplored. The Action Gaminator, for one, is designed to bring a fresh and versatile element to the Illinois VGT mix with casino-style multi-gaming packed with the superior graphics and audio punch of the Super-V+ Gaminator and the twin-screen NovoStar SL2. Also developed for Illinois initially is the Magic Games Premium HD, a multi-game platform featuring 25 player-selectable titles and a similarly eclectic range of uprights and slants that include the V.I.P. and the triplescreen Dominator and Super-V+ Gaminator III. The group’s Octavian subsidiary will bring some additional international flair to the show with its ACP Casino Management System and some choice jackpot concepts, and a selection of games from its Octo-Games line. The myriad opportunities available globally in online and social gaming—Novomatic’s “third pillar” of innovation, as the company calls it—will be the subject of a dedicated interactive area under the aegis of Vienna-based Greentube Entertainment Solutions. Novomatic acquired Greentube in 2010, a smart move for a company that enjoys a geographic diversity few manufacturers can match. The group’s presence encompasses more than 230,000 machine games in 80 countries, and it has locations in 50 of them, a reach that extends to more than 1,500 casinos and gaming venues on five continents. The company also is mapping expansion into lottery via Novomatic Lottery Solutions, whose staff will be on hand at the show to discuss a number of innovations developed for the sector. “Being a full-service supplier to all segments of the gaming industry is one of our primary assets,” Harald Neumann, chief executive of parent Novomatic AG, said when the company released its first-half results in August. EBITDA hit €291 million for the period (US$325 million) on revenues that overcame challenging environments in a number of core markets to grow 5 percent year on year to €988 million ($1.1 billion), a new sixmonth record. As Neumann stated, “We were able to demonstrate once more that our strategy as an internationally active gaming technology group proves to be the correct way to success.” By James Rutherford
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gLoBaL gamES 2015
ortiz gaming
Doubling Down
in the U.S. An industry leader in electronic bingo, Ortiz Gaming expands its library and its U.S. markets G2E also will see the U.S. debut of the O-Future, the company’s latest advancement in cabinet design offering the same rich package of graphics, sound and comfort pioneered by the 42-inch curved-screen O-Circle, but with twin high-definition monitors and adaptable lighting for different types of games.
hen this month’s Global Gaming Expo rolls around, Ortiz Gaming expects to be well on the way to doubling the number of U.S. states offering its colorfully innovative games. “We have seen leaps and bounds in the technological innovations in the world around us,” Ortiz President Maurilio Silva said in the run-up to the Las Vegas super-show. “So this year, Ortiz Gaming is answering these ever-changing industry needs with a multi-solution catalog for land-based and interactive channels.” It’s a catalog that’s been significantly enhanced on a lot of levels, and to highlight it, Ortiz has booked twice the exhibit space it did in 2014, which means visitors see more of Ortiz’s unique vision for the future of the Class II slot floor than ever before. “We will be unveiling new takes on games from online to server-based to electronic bingo and everything in between,” said Silva. Of course, the world of machine gaming outside the U.S.—and it’s a big world—has long been reaping the value that Ortiz’s out-of-the-box thinking has generated for their operations, mainly via the company’s core strength in electronic bingo. From its origins 20 years ago in the Latin American EGM market, the company has extended its reach throughout Central and South America, into Europe and, more recently, into East Asia via a subsidiary based in the Philippines. Currently, players in 14 countries know all about Ortiz, and their numbers will be growing with the ramp-up of a new division called Ortiz Interactive that is bringing hits like Ace Mania, Triple Bonus, Goal Mania, Hot Chilli, Fiesta Bingo and Bingolé to online, mobile, server-based and social gaming platforms in regulated jurisdictions spanning the globe. G2E also will see the U.S. debut of the O-Future, the company’s latest advancement in cabinet design offering the same rich package of graphics, sound and comfort pioneered by the 42-inch curved-screen O-Circle, but with twin high-definition monitors and adaptable lighting for different types of games. The company also continues to improve on its Ortiz Cash management and reporting solution, which packs a full kit of customizable casino-scale tools at a price point tailored for the comparatively smaller operations that dominate
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in the company’s core markets. For Ortiz, though, it all begins and ends with the games. Popular sellers such as Ace Mania, a Latin-style three-by-five bingo offering available in both Class II and Class III versions, is emblematic of Ortiz’s innovative approach. Thirty balls are drawn, plus 10 extra balls, for play on up to four cards simultaneously. Twelve prize combinations are possible, or 13 in all, counting a jackpot. The chase is focused on the character of the “Joker.” When he appears, players get to choose the next number from the 10 extra balls. They can also take a shot at doubling their prize by betting on whether the number on the card to be drawn will be greater or less than seven. They can wager everything they’ve won up to that point or half of it. Six Bingo is scoring big in tribal markets with this same high-volume playability in an American-style five-by-five configuration packed with the bonus action favored by U.S. players. Here, too, the “Extra Bonus” ball con-
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SIMPLY SIMPLY BRILLIANT... B R LLIANT... RI cept figures prominently. Forty-four balls are drawn along with up to seven bonus balls for additional chances to win on up to four cards simultaneously, each of which features the center “Free Space” familiar to players of the traditional American game. Triple Bonus, a three-by-five offering, adds a wheel bonus to the Extra Ball action, triggered when a player makes a square pattern on any card, which allows them to spin wheels to earn more credits. With Goal Mania, a three-by-five game available also for Class III, the company really signaled its commitment to pushing the frontiers of bingo playability. In essence, it’s a variation on what Ace Mania achieves, but with a bonus round triggered when a “Double O” prize is won. In the bonus, the player selects soccer players on the screen, each footballer corresponding to a credit award. The game ends when a referee appears flashing a red card. The player keeps the total of the credits chosen before the red card appears. Seventeen prize combinations are possible in all, including a jackpot. Needless to say, this is not your grandmother’s bingo, and it takes some bold math models to pull off its intricacies. Operators are becoming increasingly enamored of the manner in which Ortiz is doing it without battering players’ wallets, and players are showing their gratitude with notably longer times on device. Much has been written already about Ortiz’s contribution to an ongoing revolution in how slot managers are thinking about the theoreticals on bingo. The key has been the Extra Ball bonus, which juices initial coin-in by nine times on average, according to experts. That’s a lot when you factor in a 20-credit max bet per card at average game speeds approaching the highs of the old three-reel steppers and well above the 25-line penny slots so common on today’s floors. Ortiz, meanwhile, is busy extending these ideas to an array of new e-lottery and keno concepts, some of which will be shown at G2E for the first time. You can bet that attendees will be taking a close look at them too. —By James Rutherford
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gLOBaL games 2015
scientific games
New Era The modern era of Scientific Games begins with a mind-boggling display of games uch has been written over the past year concerning the megamerger that created the new Scientific Games, and the end-to-end supplier that resulted—incorporating famous brands from Bally to WMS to Shuffle Master to Barcrest—along with their convergence with interactive and lottery divisions, and the rest of what has been an unprecedented story in the industry. But the Global Gaming Expo is where all the abstracts of the story meet the real world. The Scientific Games display at G2E—two stories, 26,000 square feet— will be a showcase for what is a remarkable collection of game design talent from the legacy companies. “When we look at our development organization, we have more than 700 employees making slot games,” says Allon Englman, vice president and design chief for Scientific Games. “I like to say the sun never sets on SG game development.” The statement is true. Scientific Games now has development studios in Las Vegas—the company’s manufacturing hub—along with Reno, Chicago (the WMS hub), Manchester in the U.K., three in India, one in China and two in Australia. There also are satellite studios in San Francisco, Arizona and elsewhere—more than 40 game design studios in all. “It’s a tremendously large development organization, which is very world-focused,” says Englman. “It allows us to do things like take games that are working in Australia or Asia or the U.K. and bring them to the U.S., and vice versa. “We’ve got a very robust talent pool, with a tremendous amount of experience in game development, and we’ve really worked hard in the past year to integrate the former Bally and WMS sides.” Scientific Games’ first G2E as a combined entity will reveal just what a diverse supplier the company has become, post-merger. While there will be scores
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All of the popular legacy platforms from both Bally and WMS will continue to host new content, and all will be featured at G2E. There will be 10 new titles launched on the Bally Alpha 2 operating system, and 23 new games on the CPU-NXT3 format, which drives the former WMS Blade and Blade s23 cabinets. of individual Bally- and WMS-branded games on display in the cabinets that have brought the legacy companies success over the years—the Pro Wave, Pro Curve, V32 and the rest from Bally; the Wave, Gamefield xD and others from WMS—the company’s G2E display also will unveil the first combined cabinet, the TwinStar. The TwinStar is the first cabinet from Scientific Games to house both Bally and WMS content. A dual-screen cabinet with twin 24-inch displays and a 22inch virtual topper, the TwinStar provides a different feel for both Bally and WMS content.
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TwinStar also features a new version of the award-winning iDeck button pad, with a 40 percent larger area for player interaction, which typically includes not only the standard wagering buttons but joystick-like functions and other unique interactions between player and game. The full HD digital topper will be offered in two distinctive styles. Both versions include chrome details, improved sound and edge lighting. Englman says deciding the titles to serve as the launch brands for the TwinStar was a nice problem to have. “We’ve got probably 10 internal brands, which are the best known in the industry, all the way from Gold Fish to Quick Hits—an unbelievable amount of riches,” he says. In the end, the cabinet will house the best of the best from both former companies. Launch titles include legacy games Gold Fish, Quick Hit, Kronos and Zeus, along with new games Quick Shot, Steam Dream and Hot Blooded. For the new cabinet, legacy titles like Quick Hit have been augmented with new features— such as the ability to win multiple progressive jackpot on one spin, and multiple mystery bonus events. Englman notes that while the games will be presented on the same hardware, each will retain the look and feel that Bally and WMS players have grown to expect. They also will retain the features that made them famous—the much-copied symbol-driven multiple progressives of Quick Hit, the high hit frequency and low volatility of Gold Fish and Zeus. Meanwhile, all of the popular legacy platforms from both Bally and WMS will continue to host new content, and all will be featured at G2E. There will be 10 new titles launched on the Bally Alpha 2 operating system, and 23 new games on the CPU-NXT3 format, which drives the former WMS Blade and Blade s23 cabinets. One of the top legacy cabinets being used this year is the Bally Pro Wave, the cabinet featuring the vertical concave monitor that Englman says has become a staple on casino floors.
Brand Party Heading up Scientific Games’ G2E lineup will be the largest collection of licensed brands the show has ever seen. “We’ll have 19 licensed themes at the show, which is the strongest showing by one company of licensed product, ever,” says Englman. Two of those brands are being kept under
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Fans of Monty Python and the Holy Grail will not be disappointed, from chuckling at the names of the two base games— “Killer Bunny” and “Black Knight”—to the signature bits throughout. wraps until the show. Englman will say only that they will be major events for the industry. However, it’s hard to imagine them making a bigger splash than the titles revealed for this article, headed by a new premium title on the Bally Pro Wave, “Monty Python and the Holy Grail.” Based on one of the most beloved comedy films ever—and perhaps the bestknown work of the highly regarded British comedy troupe—the Holy Grail slot makes the most of the funniest scenes from the movie. Fans of Monty Python and the Holy Grail will not be disappointed, from chuckling at the names of the two base games—“Killer Bunny” and “Black Knight”—to the signature bits throughout. For instance, as the reels spin, the audio background consists of the fake hoof sounds made by King Arthur’s deputy as his troop pretended to be on horseback. (If you haven’t seen the film, watch it—you’ll get it immediately.) Bonus rounds are hilarious. Free spins are accented by footage of the Black Knight’s ill-fated battle with King Arthur (it keeps going back to clips that find the knight’s bravado continuing despite losing just about every limb), or the Killer Bunny chasing the knights (“Run away! Run away!”), or the sentry of the French fort flinging animals at the troupe. All of this, of course, is meaningless if you haven’t seen the film. But fans of the legendary comedy will not be able to get enough of this one. (The bonus trigger? The “Holy Hand Grenade,” naturally.) Another high-profile brand this year is Michael Jackson Icon. The third game celebrating the late King of Pop resides on the Bally Pro Wheel cabinet. Background reel-spinning music is provided by “Don’t Stop ‘Till You Get Enough,” the hit song from Jackson’s 1979 debut solo album. Features include a wheel bonus and a mystery free-spin event in which the reels expand to six rows of symbols. One of the main bonuses is built around the song “Leave Me Alone,” Jackson’s defiant song and video addressing the tabloid press that hounded him his entire career. Other new branded games make full use of each of the game platforms popu84
Global Gaming Business OCTOBER 2015
larized by legacy Bally and WMS games. The Bally Alpha Pro Theatre cabinet, the movie-style setup equipped with the Pro Sound Chair, hosts a game that combines Bally’s popular Playboy series of games with the sights and sounds of global music star Pitbull. Called Playboy Don’t Stop the Party!, it is a progressive video slot featuring Pitbull with an assortment of Playboy Playmates. The game features four hit songs from Pitbull, popular play mechanics, and a five-level progressive jackpot, including a wide-area progressive award on the Bally Cash Connection link. The Bally Pro Series V22/32 format, which features a 22-inch main screen under a 32-inch vertical top screen, hosts one of the most popular recording artists of the past several decades with the Cher Live video slot. The game’s bonus events feature Cher performing five of her most popular hits. The V22/32, like the Alpha Pro Theatre, is equipped with the Pro Sound Chair, so the audio is concert-quality. A “Concert Wheel Bonus” awards credits and one of five free-spin bonuses, each tied to one of Cher’s hits— “Believe,” “Turn Back Time,” “It’s in His Kiss,” “All or Nothing” and “Strong Enough.” The Blade cabinet from the former WMS gets in on the brand party as well. On the Blade Stepper, equipped with a 42-inch curved top-box LCD, is Margaritaville, featuring the music of Jimmy Buffett. A three-reel, low-denomination game, the slot features six bonuses, forming the basis for lots of Buffett
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hits, concert clips and crowd shots depicting devoted “Parrott Head” fans. Two more high-profile brands—Caddyshack and The Rocky Horror Picture Show—are featured on the WMS Blade video cabinet. Caddyshack mines the best comedy bits from the 1980 comedy starring Chevy Chase, Bill Murray, Ted Knight and Rodney Dangerfield. The slot features seven bonus events tied to characters from the film, and includes clips of the movie’s most memorable moments, from the battle between Murray’s golf-course groundskeeper character and the groundhog (watch out for the gopher bombs) to Dangerfield’s hilarious bits attacking Knight’s stodgy country club president. The Rocky Horror Picture Show features clips from the cult-classic movie, five “Time Warp” base-game features, and a wheel that awards credits, four jackpots or a free-spin bonus. “This game will have players doing the Time Warp again and again,” comments Englman, “and includes many of the famous songs to keep players singing along.” Other new branded slots include The Wizard of Oz: Not in Kansas Anymore and Elvis Lives, both on the WMS Gamefield xD cabinet; Friends: I’ll Be There For You and Titanic Heart of the Ocean on the Pro Theatre; The Flintstones on the WMS three-reel mechanical; and Cheers, on the Bally V22/42 Dual Wheel cabinet, a game that makes the most of the funniest moments from the long-running series. There also is a new Iron Man slot on the Bally Pro Series upright—a 86
Global Gaming Business OCTOBER 2015
unique seven-reel primary game in which two reels are wild on every spin, and the wild reels change position with every game.
HOmegrOwn Brands All of those licensed brands will be accompanied by a huge lineup of proprietary brands utilizing the wealth of legacy formats making up Scientific Games. One of the highlights this year is Sons of the Dragon, a local-area progressive on the S32 slant cabinet that allows the player to win several progressive jackpots at once. “You can win the jackpots up to 80 times,” says Englman. “You can win the same jackpot quite a bit. This one’s over the top.” Also on the S32 is a reprise of the hit Money Burst series from WMS. One of the most popular WMS game mechanics in its history, Money Burst provides two, two-symbol reels connected to all other reels to produce high line wins. It was originally introduced with Dean Martin’s Dance Party, a game that is still earning revenue on casino floors five years after its launch. In the new iteration of Money Burst, a progressive element is added to the mix. Also highlighted this year is Jackpot Vault, which reprises a popular feature of WMS games in Australia called “All Up.” With this game mechanic, the player can make an extra wager to purchase higher-paying gold symbols. With the gold symbols activated, the pay table values rise. Among the other new core games to be launched at G2E are Miss Universe, Green Machine, a reprise of the popular WMS stepper Hot Hot Super Jackpot,
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gLOBaL games 2015
scientific games
“You can win the jackpots up to 80 times. You can win the same jackpot quite a bit. This one’s over the top.” —Allon Englman, vice president and design chief, Scientific Games
and a complete lineup of the signature stepper games of Barcrest, the Manchester, U.K.-based slot-maker Scientific Games acquired from IGT prior to the Bally acquisition. The Barcrest games are distinguished by their simple-to-understand, arcadestyle top-box bonus events, in which lights flash behind images of dollar bills or credit amounts, usually to the backdrop of cheery music and a cheesy game-show-host announcer. New Barcrest titles include Triple Golden Cherries with Sprinkles and Easy Money.
shuffLing the taBLes The Shuffle Master brand is represented this year not only with new slot games for the Australia market, but games, side bets and systems related to the table side of the business. Twelve proprietary Shuffle Master table games will be displayed at G2E, highlighted by DJ Wild Stud Poker, Fortune Asia Poker, Flushes Gone Wild and Picture Perfect. DJ Wild is a player-versus-dealer poker game with five wild cards—four deuces and one joker. Scientific Games will showcase several Shuffle Master progressive table games incorporating its enhanced Game Manager 2 software and Nexus Command hardware. Several e-table games also will be featured, including TableMaster Fusion, Fusion Hybrid and Fusion Auto Roulette. Headlining the segment Scientific Games now calls Electronic Table Game Solutions, or ETS, will be a new TableMaster Fusion e-table called Playboy Bonus Blackjack. It is a blackjack game featuring a community slot-like bonus round, with video Playboy Playmates as the dealers on a high-definition, 75-inch display and on 22-inch wide-screen player-terminal monitors featuring touchscreen betting for multiple side bets. On Fusion Hybrid, which connects up to four live-dealer games with electronic betting terminals, Fusion Auto Roulette brings traditional roulette to a fully configurable, live-action, electronic layout.
system strength Of course, no G2E staged by Scientific Games would leave out new innovations from Bally Systems. This year, one of the highlights is DM Wagering, a new application for the Bally Elite Bonusing Suite (EBS) that enables players to wager on secondary casino games without leaving their machine. Players can use credits from their base-game credit meter to purchase tickets for additional games. The first game available for DM Wagering is a lottery-style game called Casino Lotto. Casino operators can offer two different types of lot88
Global Gaming Business OCTOBER 2015
tery options with DM Wagering’s Casino Lotto: instant results for un-carded and carded players, or scheduled results for carded players only. Bally Systems also will offer demonstrations of BetVIEW, a secondary wagering application that generates incremental revenues while adding to the player experience; and BallyVIP, a comprehensive customer relationship management module designed to offer faster service to casino customers. Also on display will be the Bally Servizio suite of mobile service solutions; version 13 of the company’s core systems products including ACSC, SDS, CMP and Business Intelligence; and the new InSite site controller for operators with multiple locations, featuring a user-friendly interface. Finally, Scientific Games will demonstrate Tournaments Express, a standalone tournament system designed to offer slot tournaments on more than 100 different cabinets from various manufacturers, which easily converts revenue-producing games to tournament games and back. But the big news, as always, will be the games, and this year, there are more than ever before. “There’s been a lot of noise over the past year or two around the merger, but this show is going to display the true power of the new Scientific Games,” says Englman. “From hardware to software, games, licensing—all aspects of what a slot machine company does—we’re going to show the power of this company. “We’ve only been together 12 months, and this is what we’ve done. Wait until you see what it looks like next year.”
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GLOBAL GAMES 2015
SPIN GAMES
Reinventing the Floor Spin Games moves its products from third-party content and Class II games to products that redefine the nature of a slot game here’s been a lot written about the casino industry’s need to come up with new ways to present the slot machine, as it has become clear that the millennials—a generation larger than the baby boomers—have made it clear they don’t want their father’s slot machine. Three-year-old Spin Games is taking the lead in presenting practical solutions to the problem. The Reno-based company, founded and led by slot-sector veteran Kent Young, has evolved from its original role as a third-party slot content supplier into products that could very realistically be the future of the slot floor. Young is well-known in the industry, having made his name at Aristocrat Technologies—and, as VP of marketing and VP of research and development, playing a central role in that company’s surge of the early 2000s. He left Aristocrat in 2007 to form third-party content supplier True Blue Gaming, which was acquired by Aruze Gaming America, where he subsequently spent two years as general manager. In 2012, he went back to the third-party content business, founding Spin Games along with programmer and game developer Michael Halvorson. At first, the two were the whole show, Young as president and Halvorson as chief development officer. They still hold the same titles, but Spin Games itself has grown around them, with a complete staff of 49 in a two-story facility in Reno. The reason for the rapid growth is the technology Young has used to move the
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company forward. The company started out as strictly a third-party supplier, partnering with some of the top slot manufacturers in the business to create slot games for land-based casinos. Spin’s content has appeared in many successful slot machines from IGT (with its R&D and manufacturing hub just across town) and others. Soon, though, Young and Halvorson began looking not at how slot machines are today, but how they will have to be in the future. It started with New Jersey, says Young, with the launch of internet gaming in November 2013. “We employed some programmers and built an HTML5 remote gaming server, and launched in New Jersey a year and a half ago,” he says. They called the server the ROC, for Robust Online Client. Spin Games was the first company to submit a proposal for the fledgling New Jersey iGaming industry, where it now covers 60 percent of the market through partnerships with Caesars Entertainment, Golden Nugget and Re-
Spin Games was the first company to submit a proposal for the fledgling New Jersey iGaming industry, where it now covers 60 percent of the market through partnerships with Caesars Entertainment, Golden Nugget and Resorts—it will cover 90 percent by the end of the year. 90
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sorts—it will cover 90 percent by the end of the year, according to Young. With the ROC established as a preferred remote gaming server in for-money internet gaming jurisdictions, Spin Games began developing content for multiple distribution channels, embracing HTML5 programming code to produce games that can be played on a PC, smart phone or any other device, without having to download an app. Young, Halvorson and their growing staff have produced a wealth of slot, video poker and bingo content—45 games as of press time—on the HTML5 platform, producing player favorites like 25 Diamonds and Triple Bombshell Betties on the slot side and a complete lineup of video poker and bingo games. The company has produced unique features for the games like ML3, for Multi-Layered 3D, a proprietary technology in the Spin HTML5 game engine that creates a depth-of-field illusion on the screen in real time. Halvorson comments that the extra ball features in Spin’s bingo games have resulted in huge jumps in per-machine revenue, since the cost of purchasing an
extra ball goes up as the pool of remaining bingo balls in a game goes down. He points to MegaBall Action, currently available online in New Jersey. “Depending on what you bet, our average bet on this game is $5.84, and our highest wager ever placed on this game was $5,000,” he says. “It’s been one of our real heavy hitters. It’s brand new in the States, but this style of product in the Philippines and South America is a very gambling-centric product. Not a lot of frills, but a lot of wagering and a lot of anticipation.” The HTML5 technology works well in social gaming applications as well. Young says Triple Bombshell Betties, with its theme centered around the pinup girls painted on World War II U.S. bombers, does particularly well in social gaming operations. At G2E, Spin Games will launch a new player interface and new graphic capabilities that Halvorson says will enable a consistent quality of graphics in games regardless of the size of a device’s display. “The uniqueness of our remote gaming server is that we deliver a high-quality package and selectively deliver specific assets to phones, to tablet devices—we have a range of graphic sizes, so it’s always optimized. The performance is always the best performance per device. “It will work on a 70-inch monitor, and it’s the same experience on a phone.” Spin Games content recently was added to the InteractivePro tables placed by Suzo Happ Company at the MGM Grand and Mirage resorts in Las Vegas. The initial launch includes 21 games, OCTOBER 2015 www.ggbmagazine.com
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GLOBAL GAMES 2015
SPIN GAMES
“Imagine we’re sitting in a sports book, and we want to play a blackjack tournament against each other. The cards are dealt to your phone, and you make the decision to hit or stand. We think it’s perfect for millennials.” —Kent Young, CEO, Spin Games
including HTML5 slot, video poker and bingo content. The tables, placed in lounges and social settings most frequented by millennials and other younger players, offer a four-screen interactive table allowing players to access social media, various TV channels, fantasy sports teams and free-play casino games including blackjack and slots via MGM’s social casino app myVegas. The tables also serve as a virtual concierge. “We are delighted to be launching with MGM Resorts International, and are very excited to see our HTML5 strategy of leading-edge, device-agnostic technology coming to fruition,” Young said in July when the installation was announced. “Our long-term strategy is to be at the forefront of U.S. interactive technology and content for land-based, mobile and web applications.”
GOING MOBILE While Spin’s HTML5 products are gaining fans online both in for-money and social applications, Spin Games’ new mobile solutions could point the way to the future of the slot floor. Multiplayer Interactive Gaming, or MIG, is a proprietary technology that allows players to use their own mobile devices to play community-based games. Those games can be social games or for-wager games, played on mobile devices in any location on a property. The casino decides the boundaries of the location in which players can use their own devices. Using beacon technology, the MIG system can isolate a central location like a bar or nightclub, and allow players to gamble or play slot games or competitive tournament games on their own mobile devices. Geolocation technology keeps the action within the defined area. Young says the technology is perfect for serving the millennials, who want to both socialize and play games on their personal devices. He says the 92
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launch game will be a blackjack tournament product. “The idea is that everything is controlled by the players on their own phones,” Young says. “Imagine we’re sitting in a sports book, and we want to play a blackjack tournament against each other. The cards are dealt to your phone, and you make the decision to hit or stand. “We think it’s perfect for millennials.” He adds that casinos can implement casino-wide tournaments, or even multi-casino tournaments. There will be a wide array of tables with various minimum bets. Halvorson says any television monitor can be instantly turned into a MIG station, affording the operator flexibility to set up the system in any location. At G2E, the company is taking its mobile offerings one step further with the launch of Rapid Games. Currently before BMM for certification, Rapid Games is the first mobile on-property product for Class II casinos. As with MIG, the system allows players to use their own smart phones or other mobile devices for real-money wagering while on the property. “It’s the first Class II, on-your-own-device, on-property for-wager product,” Young says. “It’s exciting; for Class II casinos it’s a no-brainer.” According to Young, the company went with a Class II launch because the tribes won’t have to pay state tax on the revenue, and tribal casinos in states like California would not be required to take Class III product off their floor to meet restrictions on numbers of games. Two inaugural games are being launched in the Rapid Game series—Lucky Daub and Rapid Bingo. Each has a culminating pattern win feature, where a player can win a pay on every completed daub pattern in lieu of a single top pay
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pattern as with most classic bingo games. Each game has been crafted for a particular user market, giving tribal casinos the ability to reach old and new players alike on their mobile devices. The Rapid Game system uses an integrated digital wallet, provided through a partnership with Sightline Payments. The product will be launched in the field in a Northern California casino. The Rapid Games solution is the product of “ReSpin,” a joint-venture partnership with Nektan Ltd. meant to provide land-based casinos with mobile gaming solutions, across both cabinets and mobile devices inside the casino.
Full CirCle Finally, Young and Spin Games are going full-circle back to the physical world of land-based gaming with “Xtra Spin,” a secondary bonus wheel and system that can add progressive wheel bonuses to the top of any legacy machine. The wheel is configurable across multiple game platforms, and utilizes a mystery controller to generate a bonus separate from the base game. Xtra Spin products are already retrofitting slots at casinos, including the Atlantis in Reno, where, according to Halvorson, the Spin Fire triple-progressive mystery wheel has increased net win on the machines retrofitted with the bonus by around 40 percent. Halvorson says there are four different unique products in the Xtra Spin series—Spin Fire, Wheel Power, Lucky Buck and Money Time— with various prize structures. For instance, Lucky Buck is a three-level progressive (Major, Minor and Mini), but includes a static dollar prize that hits more often than the progressives. “People see that wheel spinning more often,” he says, “which increases the appeal of the machine.” Going forward, Young says Spin Games will continue with both land-based and mobile/interactive solutions. And with its staff still growing, the range of products from Spin is bound to propel the young company (no pun intended) to new heights.
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iGAMING NORTH AMERICA
Diagnosing eSports The numbers are impressive, but will it work for gaming industry?
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s conference organizers, we are forever steering our programs toward new opportunities showing great promise for the gambling industry. With that, a portion of next year’s iGaming North America program will focus on the eSports phenomenon. If you haven’t yet caught the wave, eSports are video games (Dota 2, League of Legends, etc.) played by extraordinarily skilled participants for cash prizes. The kicker—and what really drives the business—is that you and I can wager on the outcome of the games. But when it comes to tackling this beast of a topic, where does one even begin? For me, the first step was overcoming my disbelief in the notion that people—a whole bunch of people—spend leisure time voluntarily watching other people play video games (something I was willing to do as young’un only when waiting for my turn to play). I got beyond this strange concept and had just begun peeling the layers off the onion when I got a heads-up from Eilers Research consultant Chris Grove, who, along with colleague Adam Krejcik, had just completed extensive research sizing up the burgeoning new industry. The research, featured in a new report published by Eilers, is enlightening, to say the least. Eilers estimates that 2.3 million customers will wager a combined $315 million on the outcome of eSports events in 2015. The outfit also predicts that the number will balloon to 19.4 million eSports customers wagering a combined $23.5 billion in 2020. The latter figure would generate around $1.81 billion in revenues. In a macro sense, the takeaway of the Eilers report—and a common thread among industry researchers these days—is that the much-talkedabout millennial generation has an insatiable appetite for things new and exciting, and traditional gambling operators will need to adapt if they want to captivate young gamblers. To a certain extent, the window is already closing. A handful of traditional sports betting operators have staked territory in the space, with Bet365, William Hill and Paddy Power leading
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By Mark Balestra
the way. Meanwhile, operators focusing solely on eSports betting are gobbling up the market with astounding prowess. To get an idea of how popular eSports betting has become, consider that LegalSports Report ranks AlphaDraft, a site that offers daily fantasy sports (DFS) games on eSports matches, is the third largest DFS site, behind DraftKings and FanDuel and ahead of Yahoo Sports. Naturally, the pathway to the eSports customer base for North American gaming operators would appear to be through partnerships with existing eSports market leaders. But what about the “oldfashioned” gamblers? You can’t expect very many old-school players to bet on eSports, right? Jai Ng, a partner with Neomancer LLC, says you most certainly can. “Unlike real sports, all data is in the computer,” says Ng, “and that is attractive to professional bettors.” Serious bettors rely heavily on data, and the amazing amount of data that is now compiled and synthesized in the world of real sports is miniscule compared to what’s possible with eSports, where everything takes place in the digital environment. Every statistic and trend imaginable—every movement made—is recorded and crunched for consumption by bettors. So, not only does the concept appeal to sports bettors, it is especially attractive to the high-stakes market. For this group, Ng reminds us, “It’s all about the odds.” Further, the action never stops, because eSports participants are all over the world, and there is always a game being played. A gamer himself, Ng recently spent six weeks immersing himself in the eSports culture, both as a player and a spectator for an article he wrote. During that period, he improved his play immensely by watching and learning from successful gamers, which gets back to my fascination with people’s willingness to watch others play video games. I couldn’t possibly explain why more than 17,000 people packed Seattle’s Key Arena to watch the Dota 2 championship, but it is abundantly evident
that a sizeable portion of eSports spectators are tuning in to sharpen their skills. Then there is the regulatory component. In the American markets, seizing the opportunity will rely on government action. Eilers Research divides the eSports market into two categories: “eSportsbook” betting, which is straight-up wagering on the outcome of matches, and “Daily Fantasy eSports” (DFeS) betting, i.e., participating in daily fantasy games. For now, eSportsbook betting puts up the big numbers, with Eilers projecting $295 million in money wagered in 2015, compared to $20 million wagered during the year on DFeS games. In other words, the fate of PASPA will have a bearing on how high eSports betting will fly in the United States. Market giant Unikrn could overcome the PASPA hurdle with a model that escapes betting regulation by giving players means of earning (rather than purchasing) virtual currency that can be redeemed for prizes. Whether the new Unikrn Arena platform, recently backed by Ashton Kutcher and Gary Oseary’s Sound Ventures, will be the answer remains to be seen. It is also conceivable that even the DFeS model, despite the federal carve-out for fantasy sports, will experience some regulatory friction, given heightened concerns in the United States about gambling products targeting underage customers. Nevertheless, based on the size and potential of the eSports market, the intersection of eSports and the U.S. land-based casino industry, at least in theory, is inevitable. “There will be some regulatory questions on the betting side,” Grove said, “but the power of the demographic and the massive success of eSports live events make this all a pretty easy sell internally for casinos.” To sum it up, this is hardly an industry casinos can afford to ignore. Mark Balestra is head of Bola Verde Media and a partner in iGaming North America, the most popular U.S. gathering for iGaming.
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GVC Wins bwin.party; Ladbrokes, Coral Merge Activist investor Jason Ader pushed bwin.party to get the most shareholder value in a sale
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he board of bwin.party last month dumped an already-accepted bid from 888 Holdings in favor of one by GVC Holdings for £1.1 billion. GVC put forward a series of bids to acquire bwin.party, with the latest offer of 122.5 pence per share valuing bwin.party at approximately £1.1 billion (€1.5 billion, US$1.7 billion). The bwin board, however, earlier chose 888’s lower bid of £898.3 million, saying the move to 888 would be more stable. 888 said it was throwing in the towel and would not increase its bid. GVC Chief Executive Kenny Alexander, who will lead the new group, declared victory. “I think unless you have scale, you are going to struggle to compete,” he told Reuters. “In combining GVC and bwin we will create one of the market leaders in online sports betting able to compete in this new landscape.” The bwin board said while the higher value of the GVC bid was clearly important, significant cost savings, as well as a proven ability to absorb an acquisition as demonstrated by the GVC purchase of Sportingbet in 2013, was also significant. U.S. activist investor Jason Ader was one of the reasons this deal was pursued. Ader’s SpringOwl company made a big investment in bwin.party and immediately spurred management to create more shareholder value. In an email, Ader declared himself “very satisfied” with the outcome. The deal will put more pressure on rivals 888 and William Hill, which had an offer for 888 rejected earlier this year. The deal will also challenge Amaya, the owner of PokerStars, which promises to launch an online sports betting operation shortly. Meanwhile, Paddy Power and Betfair have agreed to a merger that will create one of the world’s largest betting and gaming companies, with annual revenues surpassing £1.1 billion (US$1.73 billion). The announcement came against the backdrop of a frenzy of consolidation in the online gaming sector highlighted most recently by Ladbrokes’ planned merger with Coral Group and a protracted bidding war between 888 Holdings and GVC Holdings to acquire bwin.party Digital Entertainment. 96
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Paddy Power Betfair, as the new entity will be known, joins a leading global bookmaker with the world’s pre-eminent online betting exchange, both of which have been among the more lucrative investments in the sector, their share prices rising 142 percent and 53 percent, respectively, over the last 12 months. Betfair grew first-quarter revenues by 15 percent against a tough 2014 World Cup comp, while Paddy Power reported a 33 percent increase in first-half operating profit. The new group will be 52 percent-owned by shareholders of Ireland’s Paddy Power and 48 percent by the shareholders of London-based Betfair. Prior to completion of the deal, the details of which are being finalized, Paddy Power shareholders also will receive a special dividend of €80 million ($91.3 million). Terms of the deal call for Betfair CEO Breon Corcoran, formerly Paddy Power’s chief operating officer, and CFO Alex Gersh to retain their positions in the combined company, with Paddy Power Chairman Gary McGann overseeing a board of directors whose non-executive members will be nominated equally by Paddy Power and Betfair.
Last Gasp for 2015 iGaming
generator, but the new budget does not include any mention of it, yet. The only thing both parties agree on is that the state needs more revenue. Newly elected Democratic Governor Tom Wolf wants to raise revenue with new taxes. Republicans want more revenue without raising taxes. Yet, all gaming reform bills have been eliminated except for one regarding online gambling. Tim Wilmott, chief executive officer of Penn National Gaming, noted, “We don’t expect anything happening in ’15, but we’ve been encouraged by the hearings that we’ve participated in, in and around the state of Pennsylvania, that there’s more of an appetite to consider these options than there ever has been.” Currently, only residents of Nevada, Delaware and New Jersey can play online poker at licensed U.S. sites. In New York, Republican state Senator John Bonacic recently told reporters his online poker bill will receive a hearing by a state Senate committee in the fall. The bill, introduced in May, has gained little traction in the state legislature, but the informational hearing before the New York Senate Racing, Gaming and Wagering Committee will discuss the viability of online poker regulation in the state. Bonacic is chairman of the committee. Representatives of Caesars Entertainment and MGM Resorts, as well as “all of my casinos, racinos and OTBs,” will be present at the hearing, Bonacic said. And finally, in California, a consortium of gaming tribes, card rooms, Amaya/PokerStars and racetracks are making a maximum effort to pass an iPoker bill in the California legislature before the end of this year’s session. However, some political observers say it may be impossible. Standing fully athwart the effort is the strong coalition headed by the Pechanga and Agua Caliente tribes and including possibly seven other
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he 2015 state legislative sessions have not been positive for the legalization of iGaming, but there still is a chance in each of the three states where campaigns have been waged. Despite a July 1 deadline, the Pennsylvania legislature has not been able to agree on a budget. Lawmakers considered online gambling as a money-
Pennsylvania Governor Tom Wolf needs more revenue, and is considering legalizing iGaming to get it
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tribes, who oppose participation in any iPoker by PokerStars and the state’s racetracks. The San Manuel Serrano Mission Indians and Morongo Band of Mission Indians are allied with three card rooms and PokerStars. They do not oppose participation by racetracks. For most of the year, passing an online poker bill has been seen as iffy, due to the lack of unity among gaming tribes. For the first part of the year the participation of PokerStars was the main sticking point. The Pechanga coalition has insisted on a “bad actor” clause that would shut out the online poker giant, which ran afoul of the Justice Department a few years ago and had to agree to an out-of-court settlement of $731 million, but didn’t admit to wrongdoing. Later in the year, the participation of racetracks, which Pechanga is also dead set against, added a new wrinkle to negotiations. However, in early August, five tribes, several card rooms and Amaya/PokerStars began an effort to drum up grassroots support for iPoker legislation. The tribes include Rincon, United Auburn Indian Community and Pala Band of Luiseño Indians. The racetracks also are part of the effort, as are the Teamsters and Service Employees International Union. This generated optimism that the logjam might be overcome. Bo Mazzetti, chairman of the Rincon Band of Luiseño Indians in San Diego County, is part of the five-tribe coalition pushing for legalization. Even if a bill doesn’t pass this year, he’d like to get one far enough along to pass early next year. “For the first time in nearly seven years, there is significant momentum on internet poker legislation,” he said in a statement. “I am hopeful that as soon as the legislature returns from its scheduled recess, the full assembly will take up the issue.”
update and extend the power of the gambling authority.” Still, officials said the updates were not tied to the criminal investigation—which led to 41 arrests—and that they believed the sites in question— including Betsolutions4U Limited and the Uniq Group Limited—engaged in “an isolated episode.” New laws will allow the Maltese authorities to have greater control over the industry’s gambling
market while also increasing player protection with a particular focus on online gambling, officials told the news agency. Malta’s gambling laws and promise of legitimate regulation are what attracted many operators to the island in the first place, but those laws have come under criticism—especially in the wake of the arrests—for not being as rigorous as initially thought.
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Malta to Update Gambling Regulations
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he Malta Gambling Authority is responding to the fallout from an Italian investigation of several Malta-based gambling companies by saying it plans considerable changes to the island country’s gaming laws. According to Italy’s news agency Agimeg, Malta officials said the authority has been working on an update of the gambling laws since 2013, and that it intends to present a number of proposals to the Parliament that will “innovate,
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OCTOBER 2015 www.ggbmagazine.com
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Web Opponents Sue Over Wire Act Interpretation
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conservative law group is suing the U.S. Department of Justice for documents related to a 2011 policy change that recognizes the right of states to legalize internet gambling within their borders. Judicial Watch says the department ignored a request filed under the U.S. Freedom Judicial Watch President of Information Act for records it claims are Tom Fitton needed to shed light on the opinion by the department’s legal counsel, which broke with the Bush administration’s interpretation of the 1961 Wire Act as a blanket ban on web gambling nationwide. Las Vegas Sands Chairman and CEO Sheldon Adelson, the Republican Party’s largest campaign contributor and a vehement opponent of internet gambling, is the driving force behind a bill currently in Congress titled “Restoration of America’s Wire Act” that would codify such a ban as federal law. If passed, it would override legalization efforts under way in several states and dismantle the regulatory regimes already established in Nevada, New Jersey and Delaware. The Judicial Watch lawsuit, filed July 15 in U.S. District Court in Washington, asks the court to force the department to produce records in connection with the 2011 opinion, which was issued in response to queries by the state lotteries of New York and Illinois. The lotteries sought authorization to sell tickets online, and got the green light to do so when the department’s legal office concluded that the Wire Act applies only to sports betting and not other forms of gambling. “When the Justice Department reverses its own interpretation of a federal statute so quickly and so completely, the American people have a right to know why,” Judicial Watch President Tom Fitton said. The department was granted an extension until September 18 to file a formal response to the suit.
DraftKings Gains U.K. License
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aily fantasy sports league DraftKings is expanding into Europe, and has acquired a U.K. license and appointed a head of international operations. The company plans to open a new office in London by the end of the year, with its services set to go live in the U.K. late this year. Jason Robbins, DraftKings The company says it also is looking to expand chief executive officer into other regions, including Europe, Asia-Pacific and Latin America. “Our expansion into the United Kingdom marks a milestone moment in the growth of DraftKings as we introduce our world-class product to new audiences,” said Jason Robbins, DraftKings chief executive officer. “We will add new sports and games to our burgeoning roster of offerings and further connect fans to their favorite teams and players. We also welcome the opportunity to forge new partnerships with leagues, teams and media outlets internationally as we have done with exceptional success in the United States.” DraftKings has appointed former PokerStars executive Jeffrey Haas as its new chief international officer. He will manage the company’s new London office and oversee the hiring of more than 20 new positions in customer acquisition and retention marketing, communications, analytics, compliance, business development and corporate partnership roles, DraftKings said in a press statement. 98
Global Gaming Business OCTOBER 2015
EMERGING LEADERS In the Blood Lauren O’Brien Business Development Executive, Aristocrat Technologies rowing up in Atlantic City and watching her father work in the gaming industry, Lauren O’Brien knew it was inevitable where she would make her career. Now, as a business development executive at Aristocrat Technologies, she is starting to realize the beginning of that goal. After graduating from the University of Nevada, Reno, O’Brien started her career in the gaming industry in the marketing and promotions department at Bally Technologies. There, she developed national promotions programs and gained invaluable introductory exposure to the casino industry. “While the work was rewarding, I realized a desire to grow and expand within the industry,” O’Brien comments. In 2012, O’Brien accepted a marketing position at Interblock, where she was able to parlay her previous promotions experience into a more integrated marketing position. Her time at Interblock allowed her to expand her skill sets and become exposed to advertising, public relations, collateral creation and client interaction. It was also at Interblock that she had the opportunity to work with her best mentor, her father, Tom O’Brien, now a senior executive at Scientific Games. “My father has been a mentor throughout my career; he has guided me in the right direction throughout my life,” she says. “Being able to work with him at Interblock was a special and beneficial experience early on in my career.” After developing her marketing skills, O’Brien was offered a job at her current company, Aristocrat Technologies, in the marketing department. She spent a brief spell in the marketing department, learning the business and culture of Aristocrat before transitioning into her current position in the sales department. “I have always had sales as my next goal, and have enjoyed the transition,” O’Brien says. “When you know the products from the marketing side of the business, it makes a transition to sales a natural and lucrative experience. If you know how to market the product, you will definitely know how to sell the product.” O’Brien is very much looking forward to expanding her experiences in sales and seeing where this part of her career in the industry takes her. Outside of her daily work routines, O’Brien values the ideals of mentorship. This was instilled in her through the interactions with her father growing up, working at Interblock and now at Aristocrat. While there is a bit of healthy competition between her and her father, there is still a strong mentoring relationship. O’Brien also has taken it upon herself to begin mentoring younger entrants to the gaming industry. She speaks regularly with graduates from the UNR program that she attended, providing career and development advice. Her mantra to those students and recent graduates includes to “stay active and have a strong work ethic. It is important to be humble and go hatin-hand to any situation. The industry is very rewarding, but you have to be open to putting in the time and effort, learning from previous experiences and growing into new ones.” —David Rittvo, The Innovation Group
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LABOR LIMITATIONS Unions, tribes face off in Congress, federal courts BY DAVE PALERMO
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hen housekeeper Susan Lewis was fired by the Saginaw Chippewa Indians for soliciting union representation of workers at the Michigan tribe’s Soaring Eagle Casino & Resort in 2010, she didn’t anticipate becoming a cause célèbre for the U.S. labor movement. “I just wanted our voice to be heard,” Lewis told Reuters News Service of her efforts on behalf of the United Auto Workers (UAW). “My old co-workers, they’re still afraid to talk to a union.” Five years later, UAW litigation with the Saginaw Chippewa and related federal court cases is the focus in a nationwide dispute pitting the right of American Indians to govern their lands against federal labor law and the ability of unions to organize tribal government casino workers. The stakes couldn’t be much higher. Tribes view litigation in the 6th Circuit Court of Appeals in Michigan as a potential threat to their sovereignty, specifically their ability to regulate union activity in much the same fashion as do federal, state and municipal governments.
Sovereign Stakes In an effort to level the legal landscape, Indian leaders are seeking congressional passage of the Tribal Labor Sovereignty Act, which would ensure that tribes, as is the case with other governmental entities, are exempt from collective bargaining provisions in the National Labor Relations Act (NLRA). “Tribal governments deserve and, in fact, are entitled by law to have parity alongside other governments,” says Senator U.S. Jerry Moran (R-Kansas), sponsor of the Senate version of the sovereignty act. Labor leaders view the court cases and sovereignty legislation as both a threat to workers’ rights and an impediment to their ability to organize some 440 Indian casinos in 28 states that, according to various sources, employ at least 400,000 people, 75 percent of them non-Indians. “The AFL-CIO does support the principle of sovereignty for tribal governments, but does not believe this principle should be used to deny workers their collective bargaining rights and (their) freedom of association,” says William Samuel, AFL-CIO’s director of government affairs. “I have spent my entire adult life advocating for those who work hard and come to America seeking the American Dream, freedom and the opportunity to provide,” says Maria Elena Durazo, vice president of immigration, civil rights and diversity for UNITE HERE, the nation’s largest gambling industry union with 90,000 members. 100 Global Gaming Business OCTOBER 2015
“This bill is a fundraiser, masked with the phony embrace of respect for tribal sovereignty,” Durazo said when the draft sovereignty act was passed last June by voice vote of the Senate Committee on Indian Affairs. The committee received $248,434 in campaign contributions from Indian tribes for the 2014 election cycle, according to UNITE HERE, with Republicans getting $74,600 and Democrats $173,834. “We won’t stand by as the Senate sells out our American rights,” Durazo said. Tribes contend they are not anti-union, but are simply seeking labor parity with the federal government, states and municipalities, which all enjoy exemptions from NLRA jurisdiction. “It really is a sovereignty issue for the tribes that I work with,” says Aurene Martin, president of Spirit Rock Consulting of Alexandria, Virginia, and a citizen of the Bad River Band of Lake Superior Chippewa Indians. “Every one of them believes that, whether or not they have a union, they want to control their own destiny and be treated like other governments at the local, state and federal level.” Off Capitol Hill, the tribal-labor dispute is being played out in federal district courts in Michigan, Oklahoma and New Mexico, where the UAW and Teamsters make no secret of their desire to swell membership with Indian casino workers. Judges in the 6th (Michigan) and 10th (Oklahoma and New Mexico) Circuit Court of Appeals are split over what role, if any, NLRA’s National Labor Relations Board (NLRB) should have over worker disputes and union organizing efforts on Indian lands. The division between the circuits may take the issue to the U.S. Supreme Court.
Simmering Dispute In California Meanwhile, a tribal-labor confrontation is brewing in California, the state’s largest Indian gambling market with 60 tribes generating $7.2 billion annually from casinos, about one-fourth of the $28.5 billion generated by Indian gambling nationwide. Unlike other tribal gambling states, California in 1999 required that 59 Indian governments seeking gambling compacts enact a model tribal labor relations ordinance (TLRO) providing a method by which unions can organize casino employees. The TLROs were intended to appease UNITE HERE, a political force in a union-friendly state. “California is unique because union organizing was integrated into the
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Governor Jerry Brown is between a rock and a hard place, trying to balance his support for tribes and the labor movement
tribal-state gaming compacts,” says Richard Guest, an attorney for the Native American Rights Fund. “If you want to have a gaming compact, the state of California is saying—because of pressure from organized labor—you as a tribe need to have labor provisions enacted which allow for union organizing.” But UNITE HERE has never been pleased with the 1999 TLROs, which limit strikes, ban picketing on tribal lands and, most importantly, require secret-ballot elections rather than the union-preferred method of tribal neutrality and card checks in organizing bargaining groups. UNITE HERE has been largely unsuccessful in organizing some 50,000 workers at California casinos with the ’99 TLROs. The union has, however, used its political clout to organize workers at a handful of tribes needing legislative ratification of new casinos as well as those new and amended tribal-state compacts. Former Governor Arnold Schwarzenegger, in amending ’99 compacts for about a dozen tribes seeking additional slot machines, enticed several of them to enter into neutrality/card check agreements with UNITE HERE. Meanwhile, newly recognized tribes such as Lytton and Graton Rancheria also have UNITE HERE contacts. “If you want to ensure yourself an easier time with votes in the California legislature, you’ve got a big leg up if you have UNITE HERE getting up and testifying that they’re in support of what you’re trying to do,” says a tribal official who requested anonymity. Renegotiations also have begun on 33 1999 tribal-state regulatory compacts due to expire in 2020. And Governor Jerry Brown is making it clear that legislative ratification of the agreements will require some serious tweaking of the TLROs. UNITE HERE state director Jack Gribbon sat in on negotiations to renew the TLRO component of a ’99 compact with the Santa Ynez Band of
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John Tahsuda, principal in Navigators Global, says tribes in union-friendly regions will favor organized labor
Chumash Indians. The tribe in August signed an agreement that did away with secret-ballot elections, allows for union picketing on tribal lands and requires neutrality and a method of mail-in ballots tantamount to card checks. “I find it atrocious, these changes,” says a tribal attorney who requested anonymity because of confidentiality demanded of participants in the tribalstate negotiations. “The very idea that a state can force a tribal government to be quiet in a collective bargaining election is nuts. “Not even the NLRA requires neutrality and card checks. Yet here’s Jack Gribbon using his political muscle, playing the role of the state at the negotiations table and forcing these changes.” It’s not known if Brown negotiators will seek similar concessions as other ’99 agreements come up for renewal. Negotiators for both sides have signed confidentiality agreements not to discuss the ongoing talks. Joginder Dhillon, Brown’s chief negotiator, declined to discuss negotiations. Many tribes will oppose any concessions to labor. “This isn’t over by a long shot,” one of the attorneys says. Others are concerned with labor provisions in recent Brown compacts that allow picketing on tribal lands. The TLRO component for a compact with Jackson Rancheria, another ’99 tribe, also eliminated the requirement for a secret-ballot election and allows picketing on tribal lands. But not all attorneys for the ’99 tribes are convinced the governor will seek neutrality/card check agreements in revised TLROs for many, if not most, of
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“Labor unions by their nature are political animals. As a Native American I am strongly You unleash that on the reservation without the opposed to the idea that (in) the name tribes having the ability to regulate it or shut it of my heritage one of the most important down and you expose the tribe to a non-Indian rights Americans have—namely, the right entity on their reservation able to affect the to form a union and collectively bargain—will politics on the reservation. be taken away from thousands of people like me, who work in a native business.
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—Gary Navarro, Pomo Indian and slot attendant at the Graton Casino near San Francisco
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—Richard Guest, attorney for the Native American Rights Fund
OCTOBER 2015 www.ggbmagazine.com 101
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the tribes entering into compact talks. “I don’t see the governor trying to foist neutrality and card checks upon tribes,” says a tribal lawyer familiar with negotiations. “I think you’ll see labor ordinances similar to what was agreed to in ’99. That’s where I think things are going.” Bryan Wildenthal, a professor at the Thomas Jefferson School of Law in San Diego, also doubts Brown will tighten labor provisions demanded when the compacts were first agreed to by former Governor Gray Davis. “The initial requirement that tribes had to engage in collective bargaining and have a TLRO, that was important to Governor Davis,” Wildenthal says. “My impression is that Governor Brown is somewhat more favorable to tribal interests. I wouldn’t expect to see Brown try to ratchet up the pressure.”
Courts Split On NLRB Jurisdiction Congress did not expressly list tribal governments in the NLRA. But the NLRB for 70 years regarded tribes as being exempt because they were considered instruments of the federal government. That assumption vanished in 2004 when the D.C. Circuit Court of Appeals upheld an NLRB unfair labor practice ruling against the San Manuel Band of Mission Indians casino in San Bernardino, California. “Although Congress has empowered the NLRB to bring legal action against private enterprises, it has never given the NLRB jurisdiction over tribes or tribal enterprises,” says Matthew Fletcher, a Michigan State University Law School professor and citizen of the Grand Traverse Band of Ottawa and Chippewa Indians. “Nonetheless, in 2004, the NLRB began asserting jurisdiction over tribal labor practices. This has created a patchwork of uncertainty and a dilution of sovereignty.” Judges in the San Manuel case said the NLRB exemption only applied to “purely intramural” matters of tribal governance. They said the San Manuel casino constituted a commercial enterprise with “activities involving non-Indians,” meaning customers and employees. NLRB jurisdiction, the judges ruled, also did not violate a treaty agreement. “Where the business employs primarily non-Native American employees and caters to primarily non-Native American customers, there is no basis for depriving employees of their rights and protections under the National Labor Relations Act,” AFL-CIO’s Samuel says. The NLRB caught tribal leaders off their guard. They were assured the NLRB would acknowledge the congressional intent of the Indian Gaming Regulatory Act (IGRA) of 1988 that Indian casinos operate as government enterprises funding essential services to tribal citizens. Tribal attorneys contend the ethnicity of workers and customers should be of no legal consequence if the business is a tribal government operation. The D.C. Circuit ruling essentially gave the NLRB freedom to look at its jurisdiction over tribal labor disputes on a case-by-case basis. Michigan’s 6th Circuit in June cited the San Manuel case in upholding an NLRB ruling against the Little River Band of Ottawa Indians, owners of the Little River Resort Casino in Manistee, Michigan. A different 6th Circuit panel a month later also upheld an NLRB ruling against the Saginaw Chippewa’s Soaring Eagle resort. But a dissenting judge noted that a pertinent Supreme Court ruling in Michigan v. Bay Mills Indian Community was not considered in the panel’s deliberations, leaving the issue ripe for an en banc review by circuit judges. Dissension among 6th Circuit judges, a 2002 10th Circuit ruling against NLRB jurisdiction over the San Juan Pueblo in New Mexico and two contradic102 Global Gaming Business OCTOBER 2015
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The Viejas band treats its employees well because it is the right thing to do, not because it has been compelled to do so by some federal or state law.
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—Viejas Chairman Robert Welch
tory rulings by the NLRB regarding its jurisdiction in a worker dispute at the Chickasaw Nation’s WinStar Casino in Oklahoma leaves the issue of tribal/labor relations in a sea of uncertainty. In addition to the recent rulings, a 10th Circuit judge in 2011 blocked a Teamsters effort to organize 300 WinStar blackjack dealers. “What is becoming clear is that nothing is settled, and this issue is likely headed for the Supreme Court or a possible legislative ‘fix,’” writes Barnes & Thornburg attorney Keith Brodie. The Supreme Court under the late Chief Justice William Rehnquist and current Chief Justice John Roberts has often ruled against tribal sovereignty. Rather than risk a high court ruling, Indian leaders are hoping for more favorable circuit court decisions or a congressional remedy.
Worker Rights vs. Tribal Sovereignty Pomo Indian Gary Navarro, a slot attendant at the Graton Casino near San Francisco, testified against the Tribal Labor Sovereignty Act at a June hearing before the House Health, Employment, Labor and Pension Subcommittee. “As a Native American I am strongly opposed to the idea that (in) the name of my heritage one of the most important rights Americans have— namely, the right to form a union and collectively bargain—will be taken away from thousands of people like me, who work in a native business,” said Navarro, an organizer for UNITE HERE, which represents workers at the tribal casino. Navarro said union representation was the only method by which workers could battle back against sexual harassment and other alleged misconduct by Station Casinos, which manages the tribally owned casino. “Exercising our right to organize turned out to be the only way to protect ourselves and our coworkers,” Navarro told committee members. “Please do not strip us of these rights.” Most tribal governments have ordinances dealing with collective bargaining, workplace rules, grievances and other employee issues. Whether, as unions suggest, the TLROs are prohibitive to collective bargaining efforts is subject to debate. The failure of unions to organize most tribal casinos may be symptomatic of labor’s inability to compete with the private sector on wages, benefits and working conditions. Chairman Rodney Butler of the Mashantucket Pequot Nation in Connecticut testified in favor of the draft sovereignty act, noting that the UAW utilized tribal labor laws in successfully organizing employees at the tribe’s Foxwoods Casino Resort. “I think both the tribe and UAW believe this agreement has worked well for both sides,” Butler says. The International Union of Operating Engineers, International Association of Firefighters and the United Food and Commercial Workers also have
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collective bargaining agreements with the Pequots. In California, the Communication Workers of America (CWA) organized employees at casinos owned by San Manuel and the Viejas Band of Kumeyaay Indians. The Viejas workers earlier this year voted out CWA for another union. Tribes contend they provide wages and benefits competitive with the hospitality industry. “The Viejas band treats its employees well because it is the right thing to do, not because it has been compelled to do so by some federal or state law,” tribal Chairman Robert Welch says. UNITE HERE contends casino workers with a collective bargaining agreement earn $7,558 more per year than comparable non-union employees. Tribes dispute the survey findings. UAW and Teamsters have failed on several occasions to organize Soaring Eagle workers. “Conditions as far as wages go were not that far out of line,” Teamsters organizer Ed Morin told Reuters, “but work conditions were out of line.” Soaring Eagle workers complained of overly harsh disciplinary decisions, unfair hiring practices and said tribal members received favorable treatment, Morin says.
Off-Reservation Enterprises A Different Matter Most tribes adhere to federal workplace mandates, such as the Fair Labor Standards Act, Occupational Safety and Health Act, Employee Retirement Income Security Act, Family and Medical Leave Act and the Age Discrimination in Em-
ployment Act. Tribal leaders are particularly concerned that union organizers operating on reservation lands could prove disruptive to tribal governance. “Labor unions by their nature are political animals,” Guest says. “You unleash that on the reservation without the tribes having the ability to regulate it or shut it down and you expose the tribe to a non-Indian entity on their reservation able to affect the politics on the reservation. “You have bad actors. You have unions that are more aggressive than others. Tribes embrace some unions with open arms. But there are those unions that seem to want to get into conflict and create disputes.” Pending resolution of the court cases and potential congressional legislation, unions will continue their efforts to organize tribal casino workers. “Immediately after 2004 we didn’t really see a lot of activity,” Martin says. “It seems like the last two to three years things have begun to pick up. “There been some activity in California, a traditional labor state. There’s been activity in New Mexico, not necessarily with organizing but other workplace issues. The activity in Michigan has been ongoing.” “You’ll see union pressure wherever you have a concentration of Indian casinos and a fistful of employees, particularly in regions that are traditionally union-friendly—the West Coast, Michigan and the Northeast,” says John Tahsuda, a Kiowa-Comanche and principal in Navigators Global. “Wherever a non-union worker is dissatisfied,” Guest predicts, “they may hear about the San Manuel case and what’s going on in the 6th Circuit and say to themselves, ‘Well, I’m going to start a union. I’m going to get the workers organized.’”
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TABLE GAMES
Making My Point Blackjack side bets make the game more interesting— and profitable
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othing gets monkeyed with, jiggered with, and fiddled around with more than blackjack. It’s the Mr. Potato Head of table games. Such is the price of pre-eminence. Not only is blackjack the most popular card game among players, but it is also the most popular card game among inventors, who are always concocting something to—ostensibly, at least—make the game better and something to—definitely, no doubt—make themselves some money. For players, this is great. They have more betting options and chances to win. For casinos, this is great. They are free-rolling on a chance to increase revenue without having to increase, at least not by much, expenses. For purists, this is grating. They think it’s analogous to giving the Mona Lisa a semicolon tattoo or slapping a bumper sticker on a Ferrari. Well, roll over Da Vinci and tell Pininfarina the news: Blackjack side bets are here to stay. They’ve evolved from passing fancy to permanent staple, and if anything, they will become more and more ubiquitous moving forward. In fact, in the near future, it’s more likely than not you will see a blackjack game with two or more different side bets from two or more different suppliers. Worlds, as George from Seinfeld once forewarned, are indeed going to collide. Speaking of worlds, just which are the biggest blackjack side bets in the table games solar system? Well, just as there are nine planets (Pluto counts), there are nine blackjack side bets that have reached a galactic level of prominence. And here they are, listed below, in alphabetical order: • 21+3 (Galaxy Gaming): The monster of the Midwest—and Southeast and Las Vegas, for that matter. This side bet considers the player’s first two cards and the dealer’s up card. Players win if that three-card population is a flush, a straight, a three of a kind or a straight flush.
106 Global Gaming Business OCTOBER 2015
By Roger Snow
• Buster Blackjack (Gambology): This is the only common-outcome side bet in the upper echelon of commercial success. When one player wins, all players win. That’s what happens when the dealer exceeds 21, and the more cards he draws doing so, the higher the payout. • In Between (AGS): This is the newest side bet here, although its genealogy traces back to Red Dog and Acey-Deucey. Players win if the dealer’s up card falls “in between” the rank of the player’s first two cards. There is a premium payout when all three cards are the same rank.
• King’s Bounty (Shuffle Master): This bet, which pays when the player’s first two cards total 20 points, got an adrenaline shot a few months ago with the advent of the “Lucky George” bonus. The “George” twist, named not for the aforementioned Costanza or the King of England with the famous stutter, but rather for the term dealers use for generous players, works like this: If a player gets one of the top hands, the dealer automatically gets tipped. • Lucky Ladies (Galaxy Gaming): It may still be the case, but there was definitely a moment in history when this was the No. 1 blackjack side bet in the world. Players win if their first two cards total 20, and the top hand is two Queens of Hearts combined with a dealer blackjack.
• Lucky Lucky (Canadian Stook): Like 21+3, this bet looks at the dealer’s up card and the player’s first two cards. However, instead of making a poker hand, Lucky Lucky makes a blackjack hand. The bet wins if the total is 1921 points. Three 7s of the same suit is the highest hand possible. • Match the Dealer (Masque Publishing): This bet works exactly as it sounds. Players win if one of their first two cards matches the rank of the dealer’s up card. There is an array of payouts that include matching the rank and suit, along with both cards matching the dealer’s up cards. • Perfect Pairs (TCS): Once was a time when this side bet was on every blackjack game in Australia. Every. Single. One. Now, with time and tide eroding its monopoly a bit, penetration is down to 90 percent. Still. Damn. Impressive. Perfect Pairs wins if the player’s first two cards are a—wait for it—pair. Pairs of the same color pay more, and pairs of the same suit, a.k.a. “perfect pairs,” pay the most. • Royal Match 21 (Shuffle Master): This side bet originally belonged to BET Technology, the company behind Fortune Pai Gow Poker and Casino War. Players win the top award if their first two cards are a King and Queen of the same suit.
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. Table game marks are owned by respective owners.
GAMING EMPLOYEES: MAKE YOUR VOICES HEARD IN THE PRESIDENTIAL RACE Inform candidates that gaming is a valued community partner in 40 states delivering benefits that include:
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A PATH TO THE MIDDLE CLASS FOR WORKERS OF ALL BACKGROUNDS & EXPERIENCES
GET INVOLVED Join the American Gaming Association as we hold on-the-ground events in key states. Tell candidates to meet you and your co-workers and learn more about the industry. Visit gamingvotes.org and register to vote. Use #GamingVotes to get candidates’ attention on social media and let them know you’re paying attention to them.
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and
asset ManageMent Big Bang theories
With value engineering and the advice of an asset manager, casino resorts can get a bigger bang for each investment buck. By Marjorie Preston
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t’s been 35 years since John Travolta rode a mechanical bull to fame in Urban Cowboy. But the scene of that movie triumph—the iconic country-and-western bar Gilley’s—is still packing them in. In June 2014, a Gilley’s opened at the Nugget Casino Resort in Sparks, Nevada. Since then, it has helped to reinvigorate the whole property. The change was long overdue. Gilley’s opened on the site of a ’70s-era tiki bar called Trader Dick’s. Dick’s Polynesian theme, giant fish tank and trademark mai tais had worn a little thin; swapping it out for a Gilley’s “not only created a lot of excitement, but also brought the average age of our customer down significantly,” says Cory Morowitz of Global Gaming & Hospitality, an advisory and investing firm that acquired the Sparks property in 2013.
setting off sparks The choice removed a threadbare, underperforming amenity and replaced it with a cross-functional destination with built-in appeal; the franchise, officially 108 Global Gaming Business OCTOBER 2015
known as Gilley’s Saloon, Dance Hall and B-B-Q, has locations in Texas, Oklahoma and Las Vegas. It serves up both F&B and a full slate of entertainment: live country music, line dancing, bull riding and hot cowboy contests— not to mention those winsome Gilley Girls, clad in bikinis and black leather chaps. That’s not all. The 10,000-square-foot site at the Nugget also includes a retail outlet, the Trading Post, which sells cowboy boots and logo gear. Gilley’s famous barbecue menu has also made fans; the chow recently won an overall 4.6 rating (out of 5) on OpenTable.com, as commenters raved about the St. Louis-style ribs, chiliburgers, barbecue wings and Tex-Mex food, along with specialty drinks like the Texan Tramp. These days, every non-gaming ingredient matters to a resort’s success. But food and beverage is among the most important, particularly in locals destinations, where repeat business is key. “We’ve noted in our research that in any market, the casinos with the best
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“We’ve noted in our research that in any market, the casinos with the best F&B product are normally the market leaders in terms of revenue or profitability.” —Cory Morowitz, Global Gaming & Hospitality
F&B product are normally the market leaders in terms of revenue or profitability,” says Morowitz. His firm, which provides strategic turnaround and asset management services for the gaming industry, has helped a number of clients “change the customer experience, particularly through food and beverage and entertainment experiences.” The changes in Sparks—which also included a renovated casino floor, a new modern sports book and a revamped customer loyalty program—seem to be paying off. “The market is growing at 3 percent, and we’re growing at more than double that,” says Morowitz. “Our EBITDA has responded significantly, over 300 percent growth or maybe more in one and a half years.” In a mature, fiercely competitive industry, it’s a model for capital investment. During the recession, many casinos were forced to stop spending beyond simple maintenance. And they remain cautious. “We have low or negative growth in most markets except those that are new and coming online, like Maryland, Massachusetts or Ohio,” says Morowitz. “But making targeted investments and strategic and tactical changes can still result in positive improvement.”
Value added An especially successful project that was cost-efficient and also got high marks from customers was the renovation of a buffet at the Majestic Star Casino in Gary, Indiana. Like many properties, the Lake Michigan riverboat faced strong headwinds during the recession, and sought bankruptcy protection in 2009. In 2011, the property founded by the late Don Barden emerged under the ownership of former majority creditor Wayzata Investment Partners, a pri-
vate equity firm in Minnesota. GGH’s Gary Shpritz, former VP of design and construction for the Cordish Companies, led the renovation. Starting with “a very limited wallet,” Shpritz was charged with transforming the Passports buffet, which looked out onto the lake but actually obscured the panorama with a mural wall and other impediments. The space reopened in July as the Harbor View, with an expansive 360-degree sightline that “embraces the view and brings the outside in,” says Shpritz. To further open up the space, Shpritz reduced the circumference of load-bearing columns and relocated salad and dessert bars which had been pushed up against the walls to a central buffet line. Instead of replacing the buffet chairs, tabletops, banquets and bases, Shpritz minimized costs by reupholstering and re-laminating—and saved $50,000 in the bargain. In an especially customer-friendly move, he added LCD monitors to each section of the buffet line. “Now patrons aren’t just waiting in line, they can enjoy their experience,” checking the menu boards, watching chefs preparing the food, or reading about upcoming specialties, he says. “They can see what will be there tomorrow night, or Friday and Saturday night,” and hopefully be inspired to return. This is Value Engineering 101, “doing the homework to find the most cost-effective finishes” and taking other measures that trim the expenditures but do not compromise quality or the guest experience, says Shpritz. “A high-priced designer could spend $100 a square foot on tile flooring from Israel, and I could get it from Altoona, PA for $20 a square foot. It’s all about being resourceful when it comes to value design and engineering.” So, is value engineering just a fancy way to describe upgrading on a shoestring? Not quite. The Society of American Value Engineers defines “value methodology” as a “systematic and structured approach for improving projects, products, and processes ... (that) helps achieve an optimum balance between function, performance, quality, safety and cost.” SAVE has reduced it to an equation: “Value = function/cost value.”
Harbor View
The space reopened in July as the Harbor View, with an expansive 360-degree sightline that “embraces the view and brings the outside in.” —Gary Shpritz, Global Gaming & Hospitality
WaTcH Your asseTs The approach is more important in the post-recession era, which has seen a fundamental shift away from the old-time casino owner-operator—the head honcho who called all the shots and usually had the money to lavish on capital investments. In many cases, that archetype has given way to a more complex alliance of owners and investors along with evolving operating models, says GGH Managing Partner Michael Kim. OCTOBER 2015 www.ggbmagazine.com 109
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A New Breed of Asset MANAger
M
ore than ever, casinos today are looking to optimize their investments in entertainment and nongaming amenities. According to Michael Kim, managing director of Global Gaming & Hospitality, it starts with the appropriate selection, sizing, positioning and costing of such amenities with an eye to driving returns on invested capital versus the standard “comped” amenity package or traditional lossleader; exploring alternative ways to control cost and deliver efficient and compelling consumer product and service; and, when appropriate, incorporating outside brands, vendors or third-party licensing arrangements. When it comes to ENGA programming and optimization, Kim says, a “one-size-fits all” approach no longer necessarily results in the best return. “It becomes imperative that the industry critically rethink and examine the cookie-cutter approach to design and costing of these critical ancillary amenities in a manner that best capitalizes on a specific casino’s market, customer base and financial situation,” he says. An asset manager can help. This consultant “does not come to the table with a specific agenda or bias—to spend or limit cap-ex, drive revenues versus profit, aid the operator versus the owner, drive franchise fees, etc.,” says Kim. His role is to optimize return on invested capital in a manner that works for the market, the ownership and the management. According to Kim, the responsibilities of an asset manager may include but are not limited to the following: • Assisting with broader strategic and financial review and assessment to frame objectives and considerations of all parties, developing medium-term and long-range strategic plans. • Performing a detailed intensive operational/facilities review and assessment to identify opportunities to enhance value of core operating assets, drive revenues, increase profits and strategically deploy capital to generate optimal ROIC. • Assisting with the oversight and implementation of certain articulated and agreed-upon value-add turnaround, repositioning or reinvestment strategies. • Implementing real-time performance-based measurement to monitor results and develop a plan of action if and when actual results deviate from the plan. • Assisting with managing cash and liquidity in the context of an immediate and long-range plan of capitalization, enabling owners to deploy or harvest invested capital and balance financial and operating leverage. Last but hardly least, says Kim, an effective asset manager “acts as the owner’s ‘advocate,’ to balance the needs and considerations of all parties in achieving success—both for the short term and the long run.”
“Obviously, you’ve got to think about this in the context of last 20 years versus the last seven,” Kim says. “A lot has happened, driven largely by the dislocation in the financial markets, the correction and the Great Recession. The industry has shifted ownership from the traditional model like Steve Wynn to include a number of financial institutions, whether they be banks or hedge funds or equity funds; institutional investors have moved into the ownership position.” This chasm between ownership and operations comes with built-in disadvantages: it can lead to management by committee, and possible standoffs on critical investment decisions. But it has also created a new and perhaps more essential kind of asset manager, typically a third-party consultant who acts as a liaison between owners and operators and “develops broad strategies to align the interests of all vested parties,” Kim says. “Theoretically, the owner wants to spend as little as possible, and the operator wants to spend as much as possible. The asset manager acts as a bridge between two sides that sometimes are diametrically opposed. There needs to be somebody that says both sides have a point and there is a middle ground.” Say the operator wants a $2 million renovation. The owner comes back with a $1 million budget, so their goals don’t align by half. The asset manager can encourage the parties to meet in the middle and get the job done for about $1.5 million. “It’s not to challenge or restate the whole model, because everyone accepted that we are going to do this,” says Kim. “The question is, can we value-engineer to get the cost of this down to as efficient a level as possible without losing the experience of the product?” In short, it’s the asset manager’s job to identify ways to enhance the value of core operating assets through strategic deployment of capital in order to drive revenues and increase profits. He or she also measures the results of capital investments, and develops a Plan B if or when the returns do not match the expectations. Incidentally, Kim adds, the loss-leader concept—accepting a loss or a break-even on F&B, hotel, entertainment and other nongaming elements, because they drive gaming—may be going the way of the great and powerful owner-operator. Today, every asset must pull its weight.
KNow Your ClieNt So, how does an asset manager make his or her recommendations? First, add paperwork (data research) to legwork (field study). Morowitz, for example, says he has visited more than 200 properties in the last several years in the interest of advising his clients. “When you’re working for somebody, you want to live in that market for a while, so you can understand what’s working and what’s not working. I’ll literally sit at a bar and talk to people, ask them how often they come and what they like (about a property). Security guards are good; they can give you 110 Global Gaming Business OCTOBER 2015
lots of information. I talk to employees to get a better understanding of the market, find out when the crowds are coming, where they go, what they do. There is also some customer survey data we leverage from focus groups casinos have done.” He also surveys the types of products casinos offer, including gaming, dining, hotel and entertainment, and learns who leads in gaming revenue. “If we can get profitability numbers, we can make inference from that kind of qualitative and quantitative research. It’s a combination of survey work and just good old-fashioned driving around and observing different properties.” It is also market- and consumer-specific—the opposite of the biggermeans-better, “build-it-and-they-will-come” approach, which has become obsolete, he adds. “In the earlier days of Atlantic City, for example, there were always untapped markets, so if you wanted to generate revenue from Pittsburgh or Virginia, you would just build more rooms. In those days, capital expenditures, if they were well-executed, generally led to revenue increases and decent returns. While the days of building hotel towers and big retail projects are not over, it’s not the rule anymore, it’s the exception. Las Vegas is a great example of spending a lot of capital, and it hasn’t always worked out. “You have to spend in this business, but you’re looking for relatively lowcapital impact with a high return—you have to make do with what you have, and also make it better.” To put it more simply, always get the tile from Altoona.
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MARKETING
Finding the Bull’s Eye Targeting issues hindering mobile ad investments
A
s the head of an ad agency, I am often the front-line sounding board for our clients’ questions and concerns regarding new digital technology, new channels and new media tactics. The reality is, the fragmentation of the digital landscape is daunting and, believe me, there are many days I am thankful not to be in our media department. Recently, a media report showing the national average time spent with media versus each medium’s ad spend allocation was brought to my attention. Mobile stands out like a sore thumb, as ad investments are nowhere near its usage level. Mobile marketing considerations abound these days, as time spent with mobile per day (2:51) has surpassed time spent on desktop and tablets per day, combined (2:12). Mobile alone is driving an overall increase in the time we spend with media each day. And while we’re talking stats, we are now spending an average of 21 minutes per day on Facebook (eMarketer, September 2014). Let that sink in for a moment. These statistics are very enticing to advertisers, but is the instinct to push more ad dollars to mobile and Facebook correct for your business? Why are advertisers not heavily investing in mobile now? To understand the disparity, several aspects of mobile must be considered. First, retailers comprise the majority of mobile advertisers this spending data represents (eMarketer, March 2015). This category of advertisers solidly relies on digital media, as consumers can stay within platform, are advertised to and complete purchases. A true marketing attribution. The holy grail of advertising. But like every medium, mobile has its strengths and weaknesses. Clearly, its strength is time spent with the device. We can’t put it down. Its weaknesses are a little more complicated. Rarely does a first ad impression result in a purchase conversion. In fact, 70 percent of users are more likely to convert from a retargeted ad, and 40 percent of ecommerce transactions occur through multiple devices. (Criteo, Q2, 2015.) Retargeting is one of digital media’s greatest strengths. However, retargeting across devices is an
By Rich Sullivan
issue, as this tactic still relies heavily on cookies. The attribution (or trackability) is not as clear with mobile, as cookies don’t always cross devices. Additionally, mobile targeting capabilities are limited compared to desktop and social channels. And the ad units are, well, tiny.
“
For advertisers, the mobile work-around could exist within social channels. Channels such as Facebook and Twitter have tons of personal and consumer data for targeting audiences. Their ad units are larger and they are device-agnostic, making retargeting seamless and attribution pure.
”
For advertisers, the mobile work-around could exist within social channels. Channels such as Facebook and Twitter have tons of personal and consumer data for targeting audiences. Their ad units are larger and they are device-agnostic, making retargeting seamless and attribution pure. All of this to say, there are many intricacies to digital platforms and channels, and they can all af-
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fect media advertising investments. My advice to our clients is this: • Stay on strategy. Don’t let other category advertisers alter your media assessments. Their marketing strategies are most likely very different than yours. • Within your marketing strategy, define your campaign’s key performance indicators. Knowing mobile’s weaknesses, does it still fit within your media goals? If exposure or awareness are goals, then the answer is yes. • Think of mobile creative like outdoor: short and to the point. Then, drive that mobile traffic to a landing page that tells your advertising story in more detail. • One of mobile’s best targeting capabilities is location-based advertising. If this tactic aligns with your marketing strategy and media goals, incorporate it into your campaigns. • Remember, there is still a portion of older adults that do not have smart phones. Consider the breakout of your demographic target audience when investing. • If retargeting is an important tactic in achieving your strategic goals, look to social channels, but remember the demographic makeup of these audiences varies greatly channel to channel. The tactics they offer may be exciting, but if the channel doesn’t reach your target audience, it’s wasted ad dollars. Stay on strategy. • If staffing allows, designate one person to stay abreast of digital changes and inform others. To consider new channels and tactics, media plans and schedules should be implemented monthly. Discuss this with your agency as well. Mobile’s U.S. saturation point is near, as almost everyone who wants a smart phone has one. Its maturity will mostly likely follow. Revisit your annual marketing strategies and media plans throughout the year, and don’t get caught up in following the crowd. Rich Sullivan is CEO of Red Square Gaming, a full-service advertising agency that focuses on casino brands. Follow him on Twitter@redsquaregamers or email him at rich@redsquaregaming.com.
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Cash Hungry Providing customers with cash can be one of the most important elements of your casino By Dave Bontempo
S
how me the money—at the kiosk, on a card, or a virtual wallet, but show me now. And keep it safe. That’s the fine line vendors balance to address gaming customers’ funds access in the world of high-speed, high-stakes business. The products to address them evolve in several areas. If it’s a kiosk, manufacturers can provide value-added gems like a camera, or an enhanced compliance capability. The product must prove its worth in the fight for valued floor space. If it’s an e-wallet, make it compatible with both brick-and-mortar and online functionality. Online gaming development may be slow, but it’s going to grow. If it’s a printer, tie it in with a kiosk. Let the customers reconcile finances quickly. Security remains paramount. Remnants of counterfeiting again made an unwelcome presence in August, this time in Atlantic City and Louisiana. A North Carolina man admitted bringing millions of dollars in counterfeit poker chips to use in a casino poker tournament. The scheme was uncovered after the man clogged a pipe by flushing the chips down the toilet in his hotel room. In Louisiana, a man set up a printing press in his hotel room, only to be flagged by security.
Good Vantage Point Cincinnati-based Vantiv brought a high-profile reputation into the gaming world. It handles $23 billion of annual transactions and services retail giants Wal-Mart and CVS, among others. Vantiv provides the connectivity for anyone using a card to fund gaming purchases. Two years ago, it created Vantiv Gaming Solutions, which has become Vantiv Entertainment Solutions, reflecting the company’s intent to help casinos, iGaming, lottery and social gaming operators build strategic pay programs. “We entered the industry with eyes wide open,” says Joe Pappano, senior vice president and managing director of Vantiv Entertainment Solutions. “We
have been able to use four-plus decades of experience to successfully navigate the bringing together of two complex industries in gaming and payments. “When we entered the gaming space, we really spent the time and had the discipline to learn about the complexities facing the industry. We were well-conditioned to know that there was going to be a lot of heavy lifting to help educate all the key stakeholders, regulators, legislators and others to really help create a seamless experience that protects the integrity of transactions in a secure way.” In facilitating all parties, Vantiv helps properties understand the security process and perhaps gain a better perspective on their players. “Within an isolated data payment warehouse, we have the ability to bring a solution the gaming industry has never seen,” Pappano says. “We can now fully understand behaviors and how they associate with a consumer. We can augment the customer profile to get more depth of understanding of specific buyer behaviors, loyalty factors, costs of acquisition and predictive analysis based on trends, as well as understand peak times of spend and share of wallet. “We now can pinpoint how to optimize a player and what motivates him or her to conduct a transaction and walk into a casino. We’re also able to tie that information to enhanced data points like device ID, geolocation and identity management.” Pappano say Vantiv can create a single view of the customer, while the casino has typically had an abbreviated version. His company has data from over 1,500 financial institutions and one of the largest data analysis organizations that bring in data points. Besides gleaning the data from technology spreading across other businesses, casinos can utilize America’s appetite for the card. Pappano says Americans spend $4 trillion a year using card devices. Consumers in the United States also represent an estimated 25 percent of the world’s creditcard business. “That instant-gratification, frictionless experience has been highly effective in the marketplace,” he says. “Consumers want to have the same experience across the board. Why shouldn’t they have that same seamless
“We have made tremendous movement with not only the card issuers but also with the game regulators. We work closely with them—helping them to understand the complexities of the payments industry and how we are going to lead them to find safe, secure and innovative solutions.” —Joe Pappano, senior vice president and managing director, Vantiv Entertainment Solutions 114 Global Gaming Business OCTOBER 2015
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experience in the gaming industry? As we build on the successes in the industry, card devices like credit, debit and prepaid will be the dominant instruments used to fund wagering accounts. These trends continue whether the economy is in a bull market or not.” Where does gaming fit into that perspective? Right in step with other industries. “The gaming industry is identical to many of the industries in the marketplace today—in-person retail, e-commerce, etc.,” Pappano indicates. “They all address similar challenges and have similar opportunities. For example, there is card data security. How do you protect the integrity of the transaction? We’re also trying to achieve and build on a seamless customer experience as well as address the EMV mandate coming in October (the payment networks’ liability shift associated with EuroPay, MasterCard and Visa—among other items, the mandate pushes industry coordination to transactions involving microchip and PIN numbers, rather than swipe and sign, in assessing fraud liability).” History suggests past challenges have strengthened all parties concerned, Pappano says. “If you take a look back at the origination of U.S. internet gaming, one key has been the build-out of sound infrastructure,” he says. “Look at how all the
“Our feature allows an attendant to go right to the kiosk, process the win and actually get the funds.” —Jim Kirner, senior vice president of sales and marketing, DiTronics
processes and framework have been put together—it’s been bulletproof. Look at Visa and MasterCard, where they were in 2012 and now in terms of MCC codes for permissible legalized gaming activities. “We have made tremendous movement with not only the card issuers but also with the game regulators. We work closely with them—helping them to understand the complexities of the payments industry and how we are going to lead them to find safe, secure and innovative solutions.”
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On the Money
Everything to Everyone
Las Vegas-based DiTronics, which handles nearly $3 billion annually, or about $7 million a day, offers its new DFS 500 kiosk to the Indy 500 pace of gaming. Jim Kirner, DiTronics senior vice president of sales and marketing, says the properties already crunch numbers weighing the value of a kiosk against a slot machine on the valued casino floor. Some kiosk benefits must be tangible, like check-cashing, ATMs and cash advance capabilities, along with the library of over 70 reports that aid in the compliance area. The value-added segment comes from new features. DiTronics recently closed deals in a couple of states for the new kiosk, with special features including a camera for surveillance, ticket-printing capability and an interface to casino management systems and player tracking. The DFS 500 provides software enhancements for ticket redemption, bill breaking, ATM, cash advance and check-cashing transactions. The software add-ons include Transaction Rewards, which integrates funds access with a casino’s player database to provide customized fee structures; Smart Dispense, which reduces wear and tear on the kiosk; and Jackpot Pay, which eliminates the need for jackpot dispense units. These software enhancements helped close the recent deals, Kirner says. While the tangible benefits of a kiosk address capability, the intangibles regard speed, which translates back to money. He offers jackpots as an example. In the traditional sense, a player wins and a waiting period ensues. The attendant comes over, the game has down time and forms must be filled out. “Our feature allows an attendant to go right to the kiosk, process the win and actually get the funds,” Kirner says. “Let’s say I have a royal flush and a $4,000 jackpot. Typically, the floor attendant has to go get the cash if it’s not in his pouch. We eliminate the need for an attendant to have to carry the pouch and the delay that would result if he did have a pouch, but not enough money in it to pay the jackpot. Instead, he can go to the kiosk, find the jackpot pay, process it and get faster response times for the player who won the money, and reduce lines (and aggravation) at the cage.” As for the player, a quick jackpot payout increases, if not preserves, his time on device. If one hits big and waits 20 minutes to get paid, he may decide to stop. Past thinking regarded jackpot payouts as a chance for dealers to earn tips and for a casino to garner publicity for a high payout in exchange for down time on a device. Vendors counter by saying technology frees employees to perform other tip-gaining tasks, while the casinos keep the pace of play rolling. Their viewpoint has been endorsed by operators, who believe the speed of play maintains revenue, keeps customers happy and may, in turn, produce tips for that reason alone. Kirner says other innovations like currency exchange work well in border casinos between the United States and Canada. Smart Dispense provides the right denomination to sections of the gaming floor, reducing or eliminating the need for big bill breaks. Again, speed.
Global Cash Access has changed “Everi” thing. In the most public financial forum, no less. Company representatives rang the opening bell at the New York Stock Exchange in late August to proclaim its new name, Everi Holdings, and new ticker symbol EVRI. Ringing the bell is considered an entrepreneur’s dream, and in the case of a company changing names, an advertisement before the entire financial world. Recent bell-ringing participants include the Howard Hughes Corporation, the WWE and the U.S. Open tennis organization. In Everi’s case, one part of the company became its new identity. You remember the name. Under the GCA banner, Everi was the award-winning wallet featuring innovative payments and monetization solutions for real-money online gaming. In its entirety, the wallet gives operators a flexible tool kit of solutions that allows players to interact with casinos anywhere in the world. It complemented the kiosks GCA used in the brick-and-mortar world.
116 Global Gaming Business OCTOBER 2015
Casinos can realize substantial time savings by using this single, innovative device that can now process and sort mixed tickets and cash on a desktop multipocket sorter at a rate of up to 1,000 documents per minute— 39 percent faster than the closest competitive unit.
JetScan IFX i400
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GCA was known for distributing $20 million in cash, serving over 1,000 gaming establishments and having 85 million transactions annually. Well, the online innovation has become the company’s money line. What’s in this new company’s “wallet?” Its future. Ram Chary, president and chief executive officer of Everi, says the transition to the Everi brand reflects the belief it will deliver gaming, security and intelligence solutions to casino operators along with engaging games and transactional security to patrons. It has been some ride for the Las Vegas company. Last year, it acquired slot manufacturer Multimedia Games for $1.2 billion. But Everi wants to do more than place money in machines. It wants to own the machines.
Maximize Space Cummins Allison, based outside Chicago, is a leading innovator and provider of check, currency and coin-handling solutions, as well as full-function ATMs. Casino finance business is not only about speed. It’s about space. “Gaming properties are looking to invest in cost-efficient, back-room technology—such as currency-handling solutions—to elevate time-consuming manual processes into more efficient tasks,” says Bob Gibson, vice president of branch operations for Cummins Allison. “Whether it’s smaller batch sorting and counting in the cage area, in the banks, or in the soft count room, today’s currency-handling solutions can streamline the process for faster and more accurate results.
“With an all-inclusive currency processing solution, casinos can not only prepare their deposits quickly and easily, but they can also archive and manage their check images, process currency and even process and image tickets—all on one machine,” he adds. “Combining these functions into a single device not only saves space and costs associated with maintaining multiple pieces of equipment, but makes employees more efficient, enabling count room and main bank workers to be more productive and cage cashiers to accommodate more players.” The company has unveiled the JetScan IFX i400 Multi-Pocket Sorter and the JetScan 4100 Currency and Ticket Sorter into the market. The pocket sorter is a highly configurable design that allows three, five, seven and nine pockets in a vertical configuration and up to a 17-pocket horizontal orientation. Casinos can realize substantial time savings by using this single, innovative device that can now process and sort mixed tickets and cash on a desktop multi-pocket sorter at a rate of up to 1,000 documents per minute—39 percent faster than the closest competitive unit, company officials say. Its unique design can create up to nine pockets in a space-saving vertical configuration, utilizing significantly less space and effectively providing a highvolume, multi-pocket sorter in a footprint barely larger than a desktop sorter. The innovations have never been more important. As congested markets shave revenue margins, shrinking the lines that clog a casino’s financial artery has become more necessity than luxury. In the age of touch-screen casino-hotel checkouts, bar-coded airline boarding passes, mobile-app gaming and Uber, customers don’t ask for speed in business operations. They demand it.
The MEI SCR… Made for Germany The German gaming market is amongst the most demanding in the world. The MEI SCR note recycler was designed to meet those challenges. Several features that will raise expectations for performance and fraud protection were created by applying feedback from German manufacturers and operators. The result is a faster, more secure way to manage cash. Now, finally, there is a note recycler that will set a new standard for machine uptime and total cost of ownership—for Germany and the rest of the world. Please contact your CPI sales representative or stop by CPI’s booth #1850 during G2E to review how the SCR can help your customers achieve newfound performance efficiencies that improve their bottom line.
Technology that counts.
CranePI.com
OCTOBER 2015 www.ggbmagazine.com 117
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GLOBAL GAMING WOMEN
Mentoring The Next Generation Programs to emphasize diversity and mentor young women show results
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uck is the combination of preparation and opportunity. I am fortunate to work as the national director of gaming for Cintas. Cintas is a large Fortune 500 company operating more than 400 facilities in North America including six manufacturing plants and eight distribution centers around the world. Cintas leads the industry in supplying corporate identity programs, floor mats, restroom supplies, promotional products, first aid, safety, fire protection products and services, and industrial carpet and tile cleaning. With a company our size, it’s important to earn the genuine trust of our employees, customers and shareholders and value employee contributions.
This past June, Cintas’ gaming division partnered with Global Gaming Women (GGW) to host an event called “Power of the Suit.” The theme of the event was to teach women how to dress confidently on the outside, but more importantly how to feel confident on the inside. The result of this incredibly impactful event inspired my team, just as much as it did the women in the audience, to do more and help one another succeed.
By Karla Perez-Larragoite, National Director of Gaming, Cintas
INCLUSION AND DIVERSITY At Cintas, we foster and support an inclusive and diverse workforce because it’s essential to our continued success. From millennials to baby boomers, it’s important to provide the right career experience, just as casinos provide the right customer experience. We are proud to reflect a growing diversity among our employee and our supplier network. We’re embracing a new generation of employees, and with that, we’re fostering inclusive work environments that will allow all of our people to bring their whole selves to work and reach their full potential. Maintaining an inclusive workforce and utilizing a diverse supplier network are also competitive advantages—we know it will make a richer Cintas better equipped for a changing landscape. Our diversity efforts aren’t limited to ethnicity, national origin, gender identity or age; our recruitment efforts are also focused on military veterans and employee-partners with disabilities. In 2014, Cintas set out to create a women’s business resource group focused on engaging, inspiring and developing female employees of Cintas to drive total business performance and establish a strong reputation as a great place to work for women. WAVE (Women Adding Value Everywhere) started at Cintas’ corporate headquarters in Mason, Ohio and has grown to include our Chicago office, which is where our gaming direct sale business is headquartered. On my team alone, four people are WAVE committee members; one of those members is a male, and two others hold leadership positions. Not only has WAVE made a positive impact on my team and the company as a whole, it has opened a number of doors with customers and business people
118 Global Gaming Business OCTOBER 2015
alike who believe in the same mission as WAVE. This past June, Cintas’ gaming division partnered with Global Gaming Women (GGW) to host an event called “Power of the Suit.” The theme of the event was to teach women how to dress confidently on the outside, but more importantly how to feel confident on the inside. The result of this incredibly impactful event inspired my team, just as much as it did the women in the audience, to do more and help one another succeed. It was clear from the start Cintas shared a vision with GGW to support and develop females to create a better working environment for everyone.
MENTORSHIP It’s incredibly important for a company to create opportunities that promote professional development and relationship-building among peers. A few years ago, Cintas introduced a mentoring program to help develop and support individuals and inspire success. Upon Cintas launching the program, I was asked to mentor a young female sales consultant who was starting out in her career. We regularly talked about the importance of building professional relationships along with education and networking, which is a critical part of a mentorship program. It was by working with this young lady and watching her succeed in her career that I was inspired to move into a leadership role and pass on my knowledge and compassion to other deserving women. The mentorship program helped me identify passion for working with young mentees and provided tools to assist with clearly defining goals, setting expectations and most importantly, how to determine the success of the relationship. For me personally, there is no better feeling than helping inspire and encourage other young professionals. Mentors can change lives, so pass it on! It is our responsibility as leaders to help others learn from our experiences. Mentor a deserving professional within your organization, or even outside of your organization.
Project1
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CUTTING EDGE by Frank Legato
Maximizing Group Revenue Product: GroupREV Manufacturer: The Rainmaker Group
mong the Rainmaker Group’s suite of profit optimization solutions designed to understand and maximize total guest value is a stand-alone group pricing solution—GroupREV—which delivers optimal pricing that is aligned with an organization’s revenue management strategy while dramatically improving the speed to decision that the sales team needs to win quality business. GroupREV provides group sales and revenue management teams the tools to respond quickly to leads and RFPs with optimal prices that drive improved conversion rates and increased group revenues. For a diverse hotel portfolio, GroupREV, on average, has improved revenues by 8 percent while increasing the conversion rates by 11 percent. GroupREV empowers sales managers and sales leaders to quote with confidence by providing a market-based range of rates targeted to the specific needs of each prospective group customer. It allows them to be more strategic and gives them greater confidence to quote rates and drive exacting, ideal revenue for each group booking. The software employs a scientific foundation that compiles data from multiple sources, from multiple locations, and houses it in one central repository. Using this data, the system instantly and accurately delivers three
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levels of group pricing intelligence—a floor rate, a ceiling rate and an optimal rate. GroupREV’s speed and ease of use frees up the sales team to channel more time and energy into serving clients and ensuring that their business is handled efficiently and effectively, building a foundation for long-lasting relationships and the potential for ongoing repeat business. Highly sophisticated, yet remarkably easy to use, the system advances group pricing beyond time-consuming, manual or outdated and suboptimal displacement cost-based methodologies to a new, higher level of science and sophistication—specifically, dynamic predictive behavioral modeling and advanced pricing optimization. Flexible in nature, it can be employed alone or in conjunction with Rainmaker’s integrated offerings, including GuestREV revenue management software; Revcaster market intelligence, rate shopping and analytics solution, and Business Intelligence, a web-based tool that yields actionable insights designed to maximize revenue and profit. For more information, visit letitrain.com.
Platform Futures Product: QX-50 Gaming Platform Manufacturer: Quixant USA
he QX-50 is a complete PC-based gaming platform designed exclusively to drive pay-to-play gaming and slot machines. The QX-50 builds on the success of the firm’s current flagship, the QX-40, and harnesses the power of AMD’s Embedded RSeries “Bald Eagle” APU, which has been optimized for high performance with low heat generation. The QX-50 is available in Dual Core or Quad Core processor configurations clocked at up to 2.7GHz (3.6 GHz with boost) and supports up to 16GB of high-performance DDR3-2133 main memory. The QX-50 is available with optional on-board AMD Radeon E8860 discrete GPU providing 2GB GDDR5 dedicated frame buffer memory. The QX-50 supports up to 10 screens, and is Ultra HD 4K compatible, using the high-performance graphics capabilities of the AMD Radeon HD 9000 Series Graphics (integrated into the AMD Embedded R-Series APU), providing discrete, level graphics performance, and enables developers to present far more detailed game visuals. Embracing the latest DisplayPort 1.2 standard, the QX-50 is capable of daisy-chaining multiple monitors from a single DisplayPort cable, which has the benefit of simplifying cabinet wiring looms. The QX-50 is the first gaming platform available to offer features included
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on the Playstation 4 and Xbox platform, such as Graphics Core Next (GCN), HSA (Heterogeneous System Architecture), hUMA (Heterogeneous Uniform Memory Architecture), AMD Mantle API and AMD TrueAudio. The QX-50 also integrates dedicated PCI Express gaming features, including all the necessary features such as dual-bank NVRAM, digital I/O, security, audio amplifier, multiple layers of security and intrusion detection. These features are made easily accessible to game software developers through Quixant’s extensive range of documentation, device drivers, libraries and gaming protocols, and it has also been designed to take full advantage of the latest 64-bit operating systems. Quixant also provides comprehensive support for secure boot chain and customized BIOS. The QX-50 gaming controller has been designed to be compliant with regulations in all major jurisdictions worldwide (including Nevada), minimizing the time required for customers to obtain regulatory approvals. Quixant offers a guaranteed 10-year supply from launch. For more information, visit quixant.com.
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CONSOLIDATION AND COMPETITION
Gaming operators have fewer choices when deciding on products and services. How will this affect the industry as a whole? By Patrick Roberts
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he wave of consolidation that has swamped the gaming industry over the past couple of years has been compelling. Crane Payments acquired MEI. Scientific Games bought WMS. Bally acquired SHFL, and then was bought by Scientific Games. IGT acquired DoubleDown and then was scooped up by GTECH. And AGI/Novomatic seemed to be buying every company in Europe. Not to mention AGS/Cadillac Jack, Amaya/PokerStars, Aristocrat/VGT, GCA/Multimedia Games… The list goes on and on. But what does it really mean to the operator and the customers in the industry? Will this make it more costly to operate as fewer vendors compete for the business of the operators? Frank Fahrenkopf should know. He ran the American Gaming Association for 17 years and saw companies come and go during his tenure. He says the current wave of consolidation came about because of the financial crisis that started in 2008. “The gaming industry had been one of the world’s stellar growth industries over the past 20 years, growing in excess of 5 percent annually, until 2008 when the global financial crises hit,” Fahrenkopf says. “By 2014, some key gaming manufacturers were fully valued in terms of share price, and given the state of the industry, their boards of directors had to consider all options to fully realize that value for shareholders. “My view is that this consolidation was a very natural outcome reflecting the state of the industry and financial market behavior. Market-led consolidation in this case will lead to short-term survival or strengthening, driving medium-term innovation and growth, and finally long-term exceptionalism. And it is this cycle that creates investment and employment to raise the economic standard of living around the world.”
Slimmer Slot Choices With the IGT/GTECH, Scientific Games/WMS/Bally, Aristocrat/VGT, GCA/Multimedia Games and AGS/Cadillac Jack deals, operators now have fewer vendors from which to buy slot machines and systems. But Fahrenkopf says the trend is much deeper than that. “In the case of GTECH/IGT and Scientific Games/Bally, we have lottery companies acquiring traditional gaming companies,” he says. “The merger and integration of their product lines creates an opportunity for endto-end solution-selling, potentially transforming value for key customers. And yet, each company has products that individually lead industry categories, such as casino management systems and social gaming. Their chal122 Global Gaming Business OCTOBER 2015
lenge is delivering a successful operational and economic integration in a timely manner while still continuing to grow their businesses.” And Fahrenkopf says he was impressed with the Aristocrat moves. “What Aristocrat has achieved adding VGT’s Class II operations to their portfolio has been very smart and profitable, particularly in the way they have integrated the two businesses with such a careful, light touch,” he says. “Also, Aristocrat over the last four years has invested heavily in game development studios that now lead a number of operators’ purchasing surveys based on their very compelling content. Ultimately, placing Aristocrat games into VGT-dominant environments is a value-adding strategy of real merit.” He doesn’t believe, however, that operator buying habits will change quickly. “At least, in the medium term, I think much of the market will exhibit traditional buying behaviors allowing those companies who offer best-ofbreed products (games, gaming machines, systems, etc.) to grow their market share in the gaps of a newly consolidated market,” says Fahrenkopf. “In Aristocrat, Konami and Ainsworth you have three companies that do not have to focus on integration or debt, but will focus on product innovation and service. Consolidation also creates space for innovation with new emerging companies developing compelling products. “So in consolidation, the potential for doing it better is there with real competition. Real competition only demands that two companies compete because that is what drives innovation and value creation, and yet we have more than 400 gaming equipment manufacturers globally.” For many years, IGT dominated the market with something approaching a 70 percent share. Fahrenkopf says that kind of thing is fleeting. “Dominance in competitive markets is generally short-lived,” he says. “Market maturity, competition, innovation and value creation are all part of an important business cycle that drives industry. And the financial markets play an important part by ensuring the right balance of competitors exists the majority of the time. “While we find ourselves in uncharted waters in the gaming industry today, I have full confidence that this is just another part of the gaming industry maturity cycle. I am rather excited by the potential of this consolidation to generate new value.”
Operator Options With the recent spate of casino operators’ consolidation via real estate investment trusts, competition is once again getting tight in that arena.
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“Dominance in competitive markets is generally short-lived. Market maturity, competition, innovation and value creation are all part of an important business cycle that drives industry.” —Frank Fahrenkopf, former president and CEO, American Gaming Association
Fahrenkopf says REITs look good early on but could be problematic down the road. “While it may have may have an immediate positive result by relieving leverage and increasing the stock price, the long-term impact cannot be predicted accurately,” he says. “For gaming operators to remain competitive, they must regularly commit large amounts of capital expenditure for the refreshment of premises, services and technology on the casino floors. As a REIT is required to distribute 90 percent of income to its shareholders, capital conflicts may develop as to what is in the relative best interests of each entity within the group. Only time will tell.” For both operators and manufacturers, Fahrenkopf says that growth with the introduction of new jurisdictions is going to be problematic. “The overall U.S. gaming market is flat at the moment, and therefore quite challenging for operators and manufacturers in the context of return on investment (ROI),” he says. “Both will be looking to drive ROI by shaving costs from operations through improving supply chain performance, restructuring entities and staff to achieve efficiencies, removing any service or product duplication for new economies, and reducing debt to unburden the balance sheet. “Simultaneously, they will be looking to invest in additional services or products to existing customers through better understanding of their needs. New market segments are always a challenge, as they require significant capital, both human and financial. And I am sure they are thinking very much about the millennials and how to attract them to their venues.”
Testing Testimony When Fahrenkopf stepped down as AGA president, he was approached by many companies to join their boards or become an adviser. He rejected most of the invitations, but was fascinated by a bid from BMM Testlabs, which was trying to break into a U.S. testing market dominated by one supplier.
“We should never entertain the notion that a monopoly, be it actual or effective, is beneficial to any industry, its stakeholders or the public,” he says. “Competition and free markets go together, and as an American, I cannot believe in anything more powerful.” He says the U.S. market is really the only global market so dominated. “In the independent gaming lab (ITL) markets around the world, no actual or effective monopolies exist except in the U.S., where a handful of regulators have unwittingly enabled an effective monopoly by not licensing other qualified ITLs. I came to BMM as a director to resolve this issue, not only for BMM but also for all qualified ITLs and for the best interests of the entire gaming industry.” Since BMM has been licensed in multiple U.S. jurisdictions, Fahrenkopf says the time used for testing games has been reduced from 90 days to an average of around 20. He says quality denials have been reduced by 10 percent or more, and, most importantly, costs to the manufacturers and regulators have been gradually reduced by 20 percent. Martin Storm, the chairman and CEO of BMM Testlabs, says the days of states launching and operating their own test labs are numbered. “Historically, there has never been significant momentum for state regulators to set up their own laboratory,” Storm says. “Jurisdictions such as Nevada and New Jersey created their own labs out of necessity since private gaming test labs did not exist in the U.S. at the time. Other jurisdictions such as Mississippi and Michigan followed a Nevada model wherein Pennsylvania followed a New Jersey model. “The vast majority of jurisdictions have elected to utilize private labs, as running a laboratory is expensive, requires constant ongoing education and must be able to be flexible in order to deal with the variable workload that can occur.” Regulators who use private labs, says Storm, can focus on innovation and new technologies while allowing highly accredited and experienced private laboratories to handle the day-to-day testing of the technology. “As one of only two global ITLs, BMM has international market reach, expertise, experience, performance and technology access that cannot be matched by an individual government gaming lab, no matter how big they are,” he says.
Regulator Education The rapid turnover of regulators in all jurisdictions makes it essential that ITLs help to educate them on new technology, trends in the marketplace, and legal issues that will come before them before long. Fahrenkopf says education is essential to keep the industry running smoothly. “The world of gaming regulators has transformed over the years with the advent of new market segments within existing jurisdictions like the VGA venues OCTOBER 2015 www.ggbmagazine.com 123
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“ITLs are qualified and accredited organizations that professionally test products for certification. Like other professionals firms, e.g. attorneys, accounting, audit, consulting and IT, it is their expertise and performance in the commercial and tribal markets that determines their fate.” —Martin Storm, CEO, BMM Testlabs
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in Illinois, and new technology platforms to implement such as casino management systems, VLT monitoring systems, mobile technology, sports betting technology, and iGaming systems and more,” he says. “Very few regulators around the world have the budgets available to keep up with these changes. Most regulators are challenged by limited resources, and at a time when these changes are only accelerating. “So, providing effective education for regulators, who often turn over rapidly, must be a primary priority of the industry. When I was with the AGA, our educational programs for regulators at our G2E shows and in conjunction with IAGA went a long way toward development of a standard for such education. Understanding the industry and how it functions must be a benchmark for every regulator who seeks to do an outstanding job.” Storm says governments need to understand that regulators must be constantly updated on developing trends in the industry. “The first step is for government to provide more funding for the management, hiring and development of staff in this evolving and complex technology environment,” he says. “The pace of change is accelerating, and regulators are challenged to keep abreast. Without appropriate financial support, the costs to the jurisdiction are lost opportunities and a real risk to their public. “The next step is that regulators can broaden their support base beyond marketing from powerful industry players to include other industry participants. Asking for support from others who are willing to help is an effective strategy for improving knowledge and skills, and broadening the message base. At BMM, we often engage with regulators who are struggling to understand technology and the regulatory implications. They should ask us, as well as others.” 124 Global Gaming Business OCTOBER 2015
Storm says U.S. regulators are beginning to realize that using ITLs makes sense for their jurisdictions. While the RFP process can be cumbersome, he believes that is appropriate for goods and services that the state governments buy. But with ITL testing services, he says, the individual manufacturers pay for that service, not the states (except where the state hires the ITL as a consultant). So, the states should not be limiting those manufacturers to doing business with one ITL; they should open it up to all qualified ITLs, even if only one ITL is serving as the state consultant, says Storm. Therefore, an “RFQ”—request for qualifications—is more appropriate when considering the ITLs the state will approve for testing. The qualification of established ITLs is a crucial step to efficient regulation, effective oversight and quality service for a fair price, he says. “ITLs are qualified and accredited organizations that professionally test products for certification,” Storm says. “Like other professionals firms, e.g. attorneys, accounting, audit, consulting and IT, it is their expertise and performance in the commercial and tribal markets that determines their fate. The state (country or tribe) is also a beneficiary of that expertise. Working with, and representing the gaming regulator effectively, is part of the overall service for a professional gaming ITL, everywhere. “With the exception of a few U.S. gaming jurisdictions, BMM has been chosen by every major and minor gaming jurisdiction in the world for its experience and excellence in gaming product certifications and software testing. This is BMM’s core competence, and where its results speak for themselves, particularly in the U.S. market.” Fahrenkopf believes that the competition is good for the industry in all disciplines, and having multiple qualified test labs can only work to everyone’s benefit. “The public deserves the very best choices in entertainment, gaming, hotels, restaurants, bars and more,” he says. “It is the link between operators, manufacturers, suppliers and test labs in a truly competitive environment that underpins the ‘best’ to be available to them, and protects them. No other model will do.”
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FRANKLY SPEAKING by Frank Legato
Trumping the Seagulls Late last month, Trump said he would make Carl Icahn, our other industry pal, secretary of the treasury. Icahn first said no thanks, but then announced he had changed his mind after he found out that Trump had emerged as the Republican front-runner. Sorry, I need a few minutes for that to sink in. Republican. Front. Runner. President. United. States. Donald. Trump. OK, I’m better now. Anyway, Icahn, owner of the Tropicana and landlord of the Trump Taj Mahal in Atlantic City, is ready to be President Trump’s treasury secretary, since he, you know, specializes in buying stuff out of bankruptcy and returning them to solvency. Maybe he’ll do that with America. Heck, maybe he’ll do that with Donald’s hair. But flash! More news from the Trump campaign: Fox Business News reports that Wynn Resorts CEO Steve Wynn has been acting as the Donald’s “unofficial adviser” in his presidential bid. Wow. Maybe there will be a cabinet post for Wynn, too. And as a bonus, Steve could draw up a plan to re-design the White House into something that has more desirable non-gaming amenities. I’m thinking dancing fountains and faux volcanoes just off the Rose Garden. How about animatronic dead presidents? Anyway, with Trump, Icahn and Wynn all in the White House, I guess we’ll have to find a place for Sheldon Adelson. (Ambassador to China, maybe?) And don’t forget Bill Boyd, Frank Fertitta and Jim Murren. I can’t wait to see the direction foreign policy takes. “What, we owe China almost a trillion dollars? Issue them markers, give them odds and tell them we’re going for double or nothing.” Sheesh, why didn’t anyone think of that before? VICT OR R INALD O
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ust when you thought nothing else could go wrong at Revel, the giant seagulls come. Glenn Straub, the Florida developer who bought the shuttered $2.4 billion, still-new Atlantic City casino resort for $82 million, is currently embroiled in a battle with ACR Energy, the Atlantic City power company formed specifically to build and operate the facility supplying power to the Revel. Incidentally, Straub plans to turn it into a water park, maybe with a casino (it will be called the “Water Park Hotel, Spa and Maybe Casino”). He abandoned his original plan to turn the Revel into a university for people who were, as he first put it, “free, white and over 21.” To this day, I don’t know what he was thinking when he said that, but he later said the remark—which irked more than a few people—was simply an expression popularized by his own generation, meaning young people with no financial obligations. I think it was the same generation that came up with “the zoot suit with the ‘reet pleat.” But anyway, Straub doesn’t want to pay exorbitant fees to power his hotel-water-park-maybe-casino, nor does he want to pay the debt incurred by the original Revel owner to build it. ACR Energy is, well, sort of freaking out, since they basically have one customer, which is buying just enough energy to keep fire systems operational in a big, empty, glass seagull target. Yes, last month, Straub said huge holes in the Revel’s glass façade were made when the side of the building was bombarded by kamikaze seagulls. These weren’t just seagulls—they were “the biggest seagulls I’ve ever seen,” Straub told reporters, saying they routinely smash into the vacant building. Straub says he’ll soon begin a $36,000 repair plan for the seagull-pocked exterior, the main goal of which is to prevent the building from beginning to look like an abandoned steel mill. “You folks have got some giant seagulls here—some of them look like they’re 60 pounds,” Straub told the Press of Atlantic City. “We find feathers and everything else underneath the windows, not to mention crabs that they drop from way up to smash them open and then eat.” Yum. I’m guessing that pointing all this out to the local press might not be the best way to build business for your new hotel-water-park-maybe-casino. Just my opinion. Meanwhile, the power plant company is beginning its own death rattle. According to a recent court filing, the plant defaulted on its loans and may not survive. The latest headline from ACR came as we went to press, accusing Straub of planning to find another buyer and “flip” the Revel. Straub’s people say that’s absurd, and I believe them. Good luck flipping that place. Maybe a steel company would buy it. The other big news this month comes from our old industry pal, Donald Trump, who, you may have heard, is running for the office of President of the United States.
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GOODS&SERVICES Everi CEO Ram Chary (center) rang the opening bell at the NYSE on August 24.
GCA/MULTIMEDIA IS ‘EVERI’ ash-access equipment supplier Global Cash C Access Holdings, Inc., which acquired Austin, Texas-based slot manufacturer Multimedia Games last year, announced a new corporate name for the merged company. As of August 24, the company retired both the GCA and Multimedia monikers to become Everi Holdings, Inc. The organization-wide rebranding, together with the company’s new logo and new corporate name, reflect the merged entity’s successful transition to “a full-service casino gaming equipment and payment solutions provider focusing on a broad range of opportunities to address customers’ casino floor and technology needs,” according to a statement from the company. The company’s new ticker symbol on the New York Stock Exchange will be EVRI. To celebrate the rebranding, President and CEO Ram V. Chary and other Everi executives rang the opening bell at the exchange on August 24. GCA’s acquisition of Multimedia Games surprised many in the industry. Multimedia, under former CEO Pat Ramsey (soon to be chief digital officer at Aristocrat Technologies), had grown from a Class II supplier into a successful and growing manufacturer of Class III slot machines, its Austin location allowing for a steady stream of engineering talent from the local University of Texas. Multimedia’s games had been growing in popularity in many U.S. casino markets, and the company had a runaway hit with the TournEvent system, an instant tournament system equipped with cameras, leaderboards and hosts that turned slot tournaments into a cross between a sporting event and a game show. Multimedia used the system to create a national event called TournEvent of Champions, in which casinos equipped with
TournEvent across the country hold satellite events leading to a finale in Las Vegas. (This year’s fourth National TournEvent of Champions will be held at the Wynn’s XS nightclub in Las Vegas, with the winner taking home a $1 million.) Multimedia’s success made it one of the most mentioned acquisition targets as the slot-manufacturing sector consolidated with a series of mergers over the past two years. Most speculation had the company being acquired by another slot supplier. However, GCA, the leading supplier of ATMs, credit services and cash-access equipment to the casino industry, saw an opportunity to expand its product base, and acquired Multimedia for $1.2 billion. The company will introduce the new logo mark and trademarks for Everi Holdings at the Global Gaming Expo in Las Vegas (September 29October 1). All of the company’s current subbrands, including TournEvent and TournEvent of Champions for the games business and CashClub, CentralCredit and Everi Compliance (formerly NEWave) for the payments business, will continue to be supported.
AGA CALLS ON CONGRESS TO IMPROVE CYBER-SECURITY he casino industry is urging Congress to enact Tgaming cyber-security legislation that would protect facilities from attacks and encourage information sharing between government and businesses. The American Gaming Association, the landbased industry’s national lobbying arm, has written to Senate Majority Leader Mitch McConnell and Minority Leader Harry Reid as part of a broader business coalition supporting passage of the Cybersecurity Information Sharing Act of 2015. The House of Representatives passed two cyber-security information-sharing bills in April with strong majorities from both parties and broad industry support. “However, current law does not do enough to foster information-sharing and establish clear lines of communication with the various government agencies responsible for cyber security,” the AGA
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letter said. “CISA will strengthen the nation’s ability to defend against cyber-attacks and better protect all Americans by encouraging the business community and the government to quickly and effectively share critical information about these threats while ensuring privacy.” Also signing the letter were the American Hotel Lodging Association, the American Resort Development Association, Building Owners and Managers Association International, the International Council of Shopping Centers, the Commercial Building Development Association, the National Association of Real Estate Investment Trusts, the National Apartment Association, the National Multifamily Housing Council and the Real Estate Roundtable. “The commercial facilities sector has a central role in the nation’s economy and, as such, remains vulnerable to cyber-attacks,” the letter states. Several casinos have been hit by intrusions of varying degrees of seriousness in the last couple of years, the AGA said, adding, “These attacks are advancing in scope and complexity.”
KONAMI DEBUTS EXPANDED LAS VEGAS HEADQUARTERS hen Konami Gaming entered the U.S. market W in 2000, it was housed in a small building on Industrial Road in Las Vegas. Five years later it moved to an expansive facility on Sunset, across from McCarran International Airport. Last month, Konami debuted an expansion that more than doubled the space of the building and elevated it to LEED status. Steve Sutherland, Konami senior vice president and COO, said the company’s sustained growth over the past 10 years demanded the expansion. “One of the reasons for Konami’s success over the years has been our persistent focus on R&D-driven innovation and quality,” he said. Konami needed more space to accommodate the Las Vegas-based R&D team to handle the increasing demand for more products and a wider range of product categories, he added. According to Konami Gaming CEO Sutoshi Sakamoto, “The new headquarters will not only allow us to increase the volume of production, but gives us
Konami executives toast visitors at the dedication of the new corporate headquarters in Las Vegas
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PROFITABLE WEST COAST CASINO FOR SALE the diversity to explore next-generation products.” Tom Jingoli, the company’s senior vice president and chief compliance officer, and Ryoichi Kimura, Konami’s senior VP and chief administrative officer, led the expansion effort. “This expanded capacity will allow us to meet current demand as well as future growth,” said Jingoli. “It also gives us increased flexibility to manufacture larger, multi-station games which require significant space for storage, assembly and testing.” Jingoli points out that 150,000 square feet of the new facility will be manufacturing. Konami executives were joined by the founder and chairman of the parent Konami Corporation, Kagemasa Kozuki.
JCM DIVESTS NANOPTIX
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ash-handling equipment supplier JCM Global has agreed to a share purchase agreement with Nanoptix Thermal Printers of New Brunswick, Canada, under which JCM will sell its 49 percent common equity interest in Nanoptix back to the company. Over the past four years, JCM has acted as both distributor and most recently as equity owner of Nanoptix, successfully marketing and selling Nanoptix products under the JCM portfolio. “We have enjoyed a mutually beneficial relationship with Nanoptix for several years,” said Tom Nieman, global vice president of sales and marketing for JCM Global. “The selling of our shares in Nanoptix was an expected evolution in the planned history of our relationship, and we wish the company nothing but the best in their future endeavors.”
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IGT GETS EXCLUSIVE PATENT FOR MULTI-HAND VIDEO POKER the competitive world of game design and manIhavenufacturing, International Game Technology may a bit of a leg up on its competition, as it received an exclusive patent on multi-hand video poker functionality. The patent will be used for the games All-Star Poker, Ultimate X Poker, Hyper Bonus Poker, Triple/Five/Ten Play Draw poker and other video poker variants featuring multiple hands. The patent will grant IGT exclusive use of multi-hand poker functionality in video poker through November 2016.
OCTOBER 2015 www.ggbmagazine.com 127
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PEOPLE RICHARD SCHUETZ NAMED BERMUDA REGULATOR
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ichard Schuetz has stepped down as a commissioner in the California Gambling Control Commission to accept an appointment as the first executive director of the Bermuda Gaming Commission. Bermuda legalized casino gaming last year, and is in the process of setting up a regulatory structure while choosing and vetting casino operators. Schuetz has long Richard Schuetz gaming experience, working at various times for Grand Casinos, Caesars Entertainment, the Stratosphere, Shuffle Master Gaming and others. He became a regulator for the first time in California. He also is a member of the International Advisory Board for the Institute for the Study of Gambling and Commercial Gaming at the University of Nevada, Reno, and is the co-moderator of the institute’s Executive Development program. “All of us at the commission are thrilled to have Richard join us in helping to introduce casinos to Bermuda,” Commission Chairman Alan Dunch said. “His extensive experience as both a casino operator and as a regulator make him ideally suited to ensure that the Bermuda casino experience operates with a high degree of integrity, and offers an additional world-class tourism amenity for Bermuda.”
BOSSINGHAM JOINS IGT
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nternational Game Technology announced last month that Ken Bossingham has joined the company as senior vice president, casino core product. Bossingham will be responsible for the global management and P&L of IGT’s Class II, Class III, video and meKen Bossingham chanical reels product lines, including market and competitive analysis, product requirements definition and marketing alignment to achieve IGT’s business objectives. He will report to Victor Duarte, IGT’s global chief product officer, gaming, and will be based in Las Vegas.
Bossingham most recently served as chief operating officer for American Gaming Systems, where he led the company’s acquisition by Apollo Global Management, and acquisitions of Colossal Gaming and Cadillac Jack, transforming AGS into a leading provider of slot and table games products. He previously held executive positions including vice president and general manager of North American casino operations for Spielo International, and chief operating officer for Atronic, both former subsidiaries of GTECH S.p.A. prior to the completion of its merger agreement with IGT.
GEARAN LEAVES NY GAMING COMMISSION
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ark Gearan, the chairman of the New York Gaming Commission, has announced his resignation. His Mark Gearan replacement will be picked by Governor Andrew Cuomo, before the state Senate confirms the decision. Gearan was formerly a director of the Peace Corps. Currently, he serves as president of Hobart and William Smith College. He has cited an increase in his workload and obligations for his resignation. He has been chairman of the Gaming Commission since March 2014. Gearan said it was an “enormous privilege” to hold the position.
CORBY NAMED SNOQUALMIE CHIEF GAMING OFFICER
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noqualmie Casino in Washington recently named Roy Corby as chief gaming officer. In his new role, Corby, a tribal gaming industry veteran, will oversee all areas of gaming within the company and work closely with player developRoy Corby ment to provide overall direction, planning and strategy. Most recently, Corby served as general manager at Jena Choctaw Pines Casino in Dry Prong, Louisiana. He also worked as the chief operating officer for Sol Casinos in Tucson, Arizona, which included a $122 million expansion. In addition, Corby was chief operating officer at Acres 4.0 in Las Vegas, a leading gaming technology firm.
GGB
October 2015 Index of Advertisers
AGA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .107 AGEM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .99 AGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23 Ainsworth . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 Alto Gaming . . . . . . . . . . . . . . . . . . . . . . . . . .87 Aristocrat . . . . . . . . . . . . . . . . . . . . . . . . . . . .13 BEGE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .104 Best Gaming Technology . . . . . . . . . . . . . . . .77 BMM International . . . . . . . . . . . . . . . . . . . . .25 Casino Design . . . . . . . . . . . . . . . . . . . . . . . .128 Cadillac Jack . . . . . . . . . . . . . . . . . . . . . . . . . .43 Casino Data Imaging CDI . . . . . . . . . . . . . . . .63 Casino Player . . . . . . . . . . . . . . . . . . . . . . . .121 Colliers International . . . . . . . . . . . . . . . . . . . .89 Crane Payment Innovations . . . . . . . . . . . . .117 Cuningham Group Architects . . . . . . . . . . . . .29 DiTronics . . . . . . . . . . . . . . . . . . . . . . . . . . . .115 Everi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35 Fantini Report . . . . . . . . . . . . . . . . . . . . . . . .127 G2E . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .111 Gaming Partners International . . . . . . . . . . . .73 Gaming Support . . . . . . . . . . . . . . . . . . . . . . .81 GGB Directory . . . . . . . . . . . . . . . . . . . . . . .113 GGB Subscriptions . . . . . . . . . . . . . . . . . . . .119 GGH Managing Partners . . . . . . . . . . . . . . . . .93 GLI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 Greenberg Traurig . . . . . . . . . . . . . . . . . . . . .57 Hnedak Bobo Group . . . . . . . . . . . . . . . . . . . .79 ICE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .105 IGT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 IGT Interactive . . . . . . . . . . . . . . . . . . . . . . . .49 Incredible Technologies . . . . . . . . . . . . . . . . .69 Innovation Group . . . . . . . . . . . . . . . . . . . . . .95 Interblock . . . . . . . . . . . . . . . . . . . . . . . . . . . .61 JCM Global . . . . . . . . . . . . . . . . . . . . . . . . . . .17 Konami Gaming . . . . . . . . . . . . . . . . Back Cover Lifescapes International . . . . . . . . . . . . . . . .103 LT Game . . . . . . . . . . . . . . . . . . . . . . . . . . . . .91 Novomatic . . . . . . . . . . . . . . . . . . . . . . . . . . .39 Ortiz Gaming . . . . . . . . . . . . . . . . . . . . . . . . .45 Piper Group . . . . . . . . . . . . . . . . . . . . . . . . .127 Rainmaker . . . . . . . . . . . . . . . . . . . . . . . . . . . .83 Red Square Gaming . . . . . . . . . . . . . . . . . . . . .9 RMC Legal Services . . . . . . . . . . . . . . . . . . . .97 RPM Advertising . . . . . . . . . . . . . . . . . . . . . . .67 Rymax Marketing . . . . . . . . . . . . . . . . . . . . .131 Scientific Games . . . . . . . . . . . . . . . . . . . . . . .19 SG Interactive . . . . . . . . . . . . . . . . . . . . . . . . .65 Spin Games . . . . . . . . . . . . . . . . . . . . . . . . . . .55 TCS JohnHuxley . . . . . . . . . . . . . . . . . . . . . . .31 Thalden Boyd Emery Architects . . . . . . . . . . .85 US Virgin Islands . . . . . . . . . . . . . . . . . . . . . . .75
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CASINO COMMUNICATIONS
Q
&A
David Rebuck Director, New Jersey Division of Gaming Enforcement
D
avid Rebuck has ridden the roller coaster in Atlantic City. Appointed by Governor Chris Christie in 2011 to completely revamp gaming regulation in the state, he got involved in promulgating the rules for online gaming, approved by the state legislature in 2013. And within the past year, he has overseen the closure of four Boardwalk casinos at a loss of more than 8,000 jobs. To hear a full podcast of this interview with GGB Publisher Roger Gros, where he talks about iGaming, the status of Revel, the future of Atlantic City and the possibilities for expanded gaming in New Jersey, visit GGBmagazine.com. GGB: What has been the impact of the closures of the casinos and the real difficulties in Atlantic City over the last year on the DGE? David Rebuck:The major impact in closure to
the casinos has been an economic impact on the region—a significant loss in jobs, and the filtering down to other businesses that provide goods and services to the region that are now impacted. So, that was a very tough year, 2014, for us. The impact on us, as regulators, was to make sure that the closures were done in a professional and effective way, with as little impact on the people who were truly impacted—the employees—as possible. We’re still well positioned to deal with the oversight and the integrity of the industry for eight casinos and internet gaming, but it was a very difficult year for all of us. What do you think about the idea to expand casino gaming into other regions of the state?
New Jersey is in a very interesting period of time right now, where casino gaming has been restricted to one city, obviously Atlantic City. The state has begun the dialogue and the debate as to whether or not that should change. If it does, the focus is clearly on the highly populated northern region of the state, the New York met130 Global Gaming Business OCTOBER 2015
ropolitan, the North Jersey market—probably the No. 1 market for possible expansion in the United States by the industry, because of the population, as well as the affluence. And I’m sure the legislature, as it considers whether or not expansion is viable, will consider if it is viable, how it is to be structured with ownership interest in an expanded area. The effort right now in Atlantic City is to create more non-gaming amenities. Does the DGE play any role in encouraging that?
I sit on the Casino Reinvestment Development Authority. So, I wear that hat in working as a board member to assist in the redevelopment and funneling of revenue into these nongaming projects… But as DGE director, when I put that hat on, there is an area where we have a responsibility to assist, and that is in the area of the alcoholic beverage venues, whether they’re owned by the casino and operated by the casino, or whether a third-party vendor. And we were very active in working with Bart Blatstein, who (is developing) the Caesars Pier… I believe that he would be one to tell you that we did that in a very effective and efficient, professional way, that allowed him to become operational in the time frame that he wanted to allow for a non-gaming entity to be in operation this summer, for visitors to Atlantic City. One of the areas you can have a lot of influence in is innovation in gaming products. How has that effort been going?
Our lab, led by Eric Weiss, has done a great job, and we’ve made it known to the industry, with the casinos as well as AGEM and their representatives, that we’re ready, willing and able to look at any device that they want to bring in, whether it be skill-based gaming, whether it be social gaming, whether it be an expansion on a slot machine product that’s unique and novel. We’ll take it on and we’ll
look at it in a very prompt way and get a response back to them faster than any other jurisdiction in the United States. It’s my commitment to them, and I think we’ve delivered on that. You mentioned skill games. How important is it that the industry get this right?
It’s an area where I do believe that the gaming community needs to be more aggressive in the future, because I think it’s well known in this industry that if it does not adapt and innovate to what may be interesting to others, particularly the millennials or younger generation, then it will go the same route as other gaming interests that have fallen off that slippery slope of being irrelevant in what is interesting, exciting and entertaining. One of the things New Jersey was proactive on was fantasy sports. The legislature passed a bill in 2012 allowing the casinos to offer some sort of fantasy sports activity here. Why didn’t that develop?
I believe that the timing wasn’t right for us in one way, and at the same time, that the fantasy sports regulations that we approved went out a few years ago, and we also became very aggressive in trying to roll out internet gaming. And I think it was very difficult for the casinos in New Jersey to multitask to two new products. And they made a choice—rightly so, I believe—to focus their efforts on internet gaming, which was on a very aggressive timeline, and there was a desire to do it and do it right on their part. What suffered was the fantasy sports, because they couldn’t put research and development resources into that… In hindsight, I wish they could have multitasked. I would have loved to have been the base for fantasy sports play in the country out of Atlantic City. It just didn’t work out.
The Feel of Luxury Rymax Marketing Services develops and manages award-winning player and employee loyalty programs for the gaming industry’s largest properties. Our custom-designed programs and industry leading brand relationships engage millions annually through proven merchandise segmentation strategies that drive ROI and increased play. Additionally, R-S.I.T.E (Rymax’s Strategic Interactive Themed Events) create an impactful experience and long-lasting impression on players. All program elements are in-house, from ordering and fulfillment to customer service and proprietary IT solutions.
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