Global Gaming Business, September 2017

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GGB Global Gaming Business Magazine

PLAYER REINVESTMENT RATING THE REASONS TRIBAL HUMAN RESOURCES GAMBLIT’S MEYERHOFER

September 2017 • Vol. 16 • No. 9 • $10

Scaling the Heights

13 Women Who Achieved the Summit

Is Bigger Better?

Why the corporate structure in gaming can be unwieldy

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CONTENTS

Vol. 16 • No. 9

september

Global Gaming Business Magazine

COLUMNS

24 COVER STORY Gaming Women

12 AGA Keeping it Real

Women are taking on an increasing share of the executive leadership of the gaming industry.

GGB presents profiles of 13 of the top women in gaming, as chosen by the board of directors of Global Gaming Women, the now-independent organization founded by the American Gaming Association to support the success of women in the industry.

Geoff Freeman

14 Fantini’s Finance Change is Good Frank Fantini

44 Hotel To OTA or Not OTA Marco Benvenuti

By Marjorie Preston, Dayna Fields, Roger Gros, William Sokolic and Erica Sweeney Cover photo of Eileen Moore, regional president, Caesars Entertainment, Flamingo, Linq & Cromwell Las Vegas, by Levi Ellison, 501 Studios, Las Vegas

51 Table Games Missteps and Disasters Roger Snow

FEATURES 18

40 Reinvesting in the Player Careful auditing and research can assure an operator’s efforts to reinvest in good players hit the mark in effectiveness.

By Sarah Procopio

46 Tribal Haves and Have-Nots

DEPARTMENTS 6

The Agenda

8

By the Numbers

10 5 Questions

The success of the top gaming tribes in Indian Country has not eradicated unemployment and poverty for many rural tribes.

18 Corporate Evolution The single-owner casinos of the industry’s formative years have given way to a corporate structure designed to efficiently run a large, multibilliondollar corporate entity.

By Chris Sieroty

By Dave Palermo

58 Total Tracking Player tracking has gone far beyond its origins as a marketing tool for only the slot floor, to assure casinos know the total worth of their customers.

By Dave Bontempo

Our monthly section highlighting and analyzing the emerging internet gaming markets.

Feature 52 Tables on Tablets Table games are succeeding in the world of online gaming because the traditional tables are the last refuge of the real gambler.

By Steve Ruddock

56 iGames News Roundup 4

10

Global Gaming Business SEPTEMBER 2017

16 AGEM Page 45 Cutting Edge 57 Frankly Speaking 61 New Game Review 62 Emerging Leaders With TRM Public Affairs’ Patrick Harris and Paysafe’s Neil Erlick

64 Goods & Services 65 People 66 Casino Communications With Kevin Ortzman, Regional President, Atlantic City, Caesars Entertainment

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THE AGENDA

God is a Woman

Vol. 16 • No. 9 • SEPTEMBER 2017 Roger Gros, Publisher | rgros@ggbmagazine.com twitter: @GlobalGamingBiz Frank Legato, Editor | flegato@ggbmagazine.com twitter: @FranklySpeakn Monica Cooley, Art Director | cooley7@sunflower.com

Roger Gros, Publisher

M

y (male) friend used to end any conversation with the phrase, “Remember, God is a woman.”

Now, no one can know if God is a man or a woman, particularly this friend who never married and is not gay (at least to my knowledge), not that there’s anything wrong with that. But I think any of us can relate to a particular man or woman who has that God-like quality that inspires and elevates, so God is indeed in all of us, men and women.

In this issue, we’re doing something that I’ve wanted to do for a long time but was a bit reluctant. I’m always reluctant to recognize people by sex, race or religion because everyone is different and everyone has their own special qualities that make them stand apart regardless of their sex, race or religion. I’ll paraphrase Dr. Martin Luther King Jr. in that I judge a person by the content of their character not by the color of their skin (or their sex or religion).

Despite my reluctance to separate women from men in the workplace, I was and remain an enthusiastic supporter of Global Gaming Women, an organization that was founded by the American Gaming Association several years ago, and recently became an independent organization under the leadership of former Isle of Capri President and CEO Virginia McDowell.

Virginia is one of my longest industry friends, and she did a great job last year bringing this organization to the next level.

The mentorship programs, the “Lean In” groups established by GGW and the conferences that GGW has held across the country have spread the good word about the organization far, and have really made a difference in how women view their jobs and careers. GGW gives women a resource they rarely had in the past.

So in celebration of these successes, in collaboration with the board of directors of Global Gaming Women, we chose 13 women to profile in this issue (because a dozen just couldn’t capture all the amazing women nominated). And while I’m also a bit gun-shy about celebrating diversity just for diversity’s sake, this group is

6

truly diverse and supremely talented. Whether it’s commercial operators, manufacturers or tribal gaming participants, this group of women can show the way to any woman who wants to get ahead in the gaming industry.

In the intro to the section, we talk about the true trailblazers in the industry—women who dared to challenge custom and tradition to break the mythical but very real, in those days, “glass ceiling.” Today, there’s not that much disparity in pay, but women still struggle to move into some of the more higher-level positions.

For example, there is rarely more than one woman on the boards of directors of major casino companies. Senior-level corporate management rarely includes a woman except in the “traditional“ roles of human resources or marketing.

Yes, there is progress being made on the president/CEO level. Rush Street Gaming has appointed women to lead two of their four properties. MGM Resorts has traditionally promoted women to lead major resorts. Caesars has several regional presidents (including our cover subject, Eileen Moore).

According to the American Gaming Association, 48 percent of employees in the gaming industry are women, well above the national average for other industries. If that is true, why are there so few opportunities for women in upper management and in corporate boardrooms? Is the gaming industry, as some still contend, a boy’s club? Is there actual discrimination of women that accounts for these rather anemic numbers in those important areas? These are some of the questions GGW and GGB hope to answer going forward, and we’re going to pay close attention to this trend.

But clearly, women are making progress in the gaming industry. Is it as quick as we’d all want? Certainly not, but by drawing attention to the talented women who do work and guide our industry, we can be sure that the “fathers” of our industry are aware that their “daughters” are as qualified—and in some cases more qualified—than anyone.

Global Gaming Business SEPTEMBER 2017

John Buyachek, Director, Sales & Marketing jbchek@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 twitter: @LisaJohnsonPR Columnists Marco Benvenuti | Frank Fantini twitter: @FantiniResearch Geoff Freeman twitter: @GeoffFreemanAGA Roger Snow Contributing Editors Dave Bontempo | Marie Casias Dayna Fields | Christopher Irwin | Dave Palermo twitter: @DavePalermo4 Marjorie Preston | Sarah Procopio Steve Ruddock twitter: @SteveRuddock Chris Sieroty | William Sokolic | Erica Sweeney

EDITORIAL ADVISORY BOARD Rino Armeni, President, Armeni Enterprises

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

• Julie Brinkerhoff-Jacobs, President, Lifescapes International

• Nicholas Casiello Jr., Shareholder, Fox Rothschild

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

• Geoff Freeman, President & CEO, American Gaming Association twitter: @GeoffFreemanAGA

• Dean Macomber, President, Macomber International, Inc.

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

• Jim Rafferty, President, Rafferty & Associates

• Thomas Reilly, Vice President Systems Sales, Scientific Games

• Steven M. Rittvo, Chairman Emeritus, The Innovation Group twitter: @InnovGrp

• Katherine Spilde, Executive Director, Sycuan Gaming Institute, San Diego State University

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

• Roy Student, President, Applied Management Strategies

• David D. Waddell, Partner Regulatory Management Counselors PC Casino Connection International LLC. 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 2017 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 Official Publication

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BY THE

NUMBERS

SoCial ExpERiMEnT S

ocial casino gaming has grown substantially from June 30, 2016 to June 30, 2017. According to the Social Casino Gaming Tracker for the second quarter of 2017, produced by Eilers & Krejcik Gaming, social casino gaming exploded by 22 percent to just over $4 billion for the year. According to the report, Playtika remained the largest social casino publisher with 25.9 percent market share, followed by DoubleU Games at 9.9 percent, and SciGames Interactive with 8.5 percent market share. Combined, the top three companies accounted for 44.3 percent of the total social casino game market, while the top-15 companies accounted for roughly 85 percent of the total market. Mobile game revenue accounted for 74 percent of all social casino game revenues generated during the year. To obtain a copy of this report, visit www.ekgamingllc.com.

EConoMiC iMpaCT

T

he introduction of a tribal casino into a community doesn’t just help the tribe; the benefits spread far and wide. In a report by Jonathan Taylor commissioned by the Snoqualmie Tribe of Washington state, the economic impact is substantial. The table at right estimates the total impact of the Snoqualmie Tribe’s purchasing in fiscal year 2015—the Snoqualmie Tribe’s contributions to gross regional, county and state product. The total impacts increase with the scope of geography; the larger regions contain the smaller ones and are more economically diverse—i.e., more capable of self-supply without importation.

The jobs impacts behave similarly, with the Snoqualmie Tribe responsible for an estimated 1,628 jobs in the cities of Snoqualmie and North Bend up to almost 2,500 jobs statewide. To receive a copy of the report, contact Jonathan Taylor at jonathan@taylorpolicy.com.

8

Global Gaming Business SEPTEMBER 2017

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NUTSHELL

“They

5Questions Eric Meyerhofer CEO, Gamblit Gaming

e

ric Meyerhofer had a plan when he was leader of ticket printer FutureLogic, a company he co-founded in the 1980s. He saw an opportunity to introduce skill-based gaming to the casino industry, and formed Gamblit Gaming to accomplish his goals. Gamblit has made a big splash at industry trade shows, and this year followed it up with hot new games that are starting to spread across the Las Vegas Strip, Southern California casinos and beyond. To hear a full version of this interview on a podcast, visit GGBMagazine.com.

1 2 3 4 5

GGB: Gamblit Gaming is producing skill games. Is that your primary business?

Meyerhofer: That’s the term everybody is using. There is activity required by the player—some

type of aptitude. You can call them skill games, but I like to think of them as a more interactive game experience. But yes, all of our games have some sort of skill required; it’s not just chance only.

Said It”

“You’re in a country that doesn’t allow gaming and you’re promoting it. Sometimes you get away with it and sometimes you don’t— unfortunately they got caught.

It could have been much worse.

China kind of gave them a slap on the wrist. It’s been a warning to everybody: ‘Be cautious, keep your gaming in Macau, and we won’t bother you.’”

—Allan Zeman, vice chairman, Wynn Macau, who says Crown Resorts can blame itself for the 2016 arrests of 19 employees in mainland China

CALENDAR September 4-6: Entertainment Arena Expo, Bucharest, Romania. Produced by Expo 24 Romania. For more information, visit earena.ro.

September 10-12: IMGL Autumn Conference, Copenhagen, Denmark. Produced by International Masters of Gaming Law. For more information, visit IMGL.org.

People have called Gamblit a disrupter in the gaming industry. Do you agree with that?

We don’t see ourselves as a disrupter; that’s an important point. We think the market is bifurcated.

The older generations that play slots and like them are perfectly happy. But there’s an entire second market that lies alongside it. We don’t disrupt those people from jumping into slot machines. We don’t think they’re going to go there anyway. For casinos, it’s going to be very challenging.

You’ve recently placed your first games on the casino floor. How is that going?

We’ve run focus groups prior to putting it on the floor, but you can’t really simulate real-life gambling. We needed to get it on the floor to see how people would react. So now we’re getting live play experience. The good news is that the first two games we’ve released are multi-player games, and they seem to be resonating with players.

There are many operators who are willing to take a chance. It’s going to take a while to figure it out, but from the data we’ve seen in the preliminary results, we’re pulling newfound dollars. That’s very clear, and our players are 15 to 20 years younger on average than the traditional slot player.

Why did you choose multi-player games first, rather than one of the single-player games you’ve also developed?

I think it had as much to do with what was going to be ready first in our own internal development process than anything else. We always wanted them to come out in close proximity to each other, and we plan to roll out TriStation (single-player machines on a carousel) very shortly.

Who is the player for your games?

Our target demographic is usually with a group of friends. We do see individual players walk up to the table, watch and study it, before they decide to sit down with strangers. But the majority of people who have been playing it are there with friends.

The player who is walking around on their own or the player who values time on device is going to be able to find that with the TriStation games. They’re very different, much more like video games than anything else. The multi-player games are simpler because you’re competing with other players, which adds a dimension of depth. The solo-player games are deeper games and bring a more immersive experience.

September 19-20: Central and Eastern European Gaming Conference & Awards, Kempinski Hotel Corvinus, Budapest, Hungary.

Produced by CEGE Events. For more information, visit CEEGC.eu.

September 20-21: Cyprus Gaming Show, Hilton Hotel, Nicosia, Cyprus. Produced by Eventus International. For more information, visit CyprusGamingShow.com.

September 26-28: Malta iGaming Seminar (MiGS), the Hilton, Malta. Produced by the Malta Gaming Authority. For more information, visit MaltaiGamingSeminar.com.

October 2-5: Global Gaming Expo, Sands Expo Center, Las Vegas. Produced by American Gaming Association and Reed Exhibitions. For more information, visit GlobalGamingExpo.com.

October 16-18: International Association of Gaming Regulators (IAGR) 2017 Conference, Emperors Palace, Johannesburg, South Africa.

Produced by IAGR. For more information, visit IAGR.org.

November 2-3: Big Africa Super Show, Emperors Palace, Johannesburg, South Africa.

Produced by Eventus International Limited.

For more information, visit bigafricasummit.com.

November 7-9: SAGSE LATAM 2017, Costa Salguero Convention Center, Buenos Aires, Argentina. Produce by Monografie. For more information, visit monografie.com/sagselatam.

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Global Gaming Business SEPTEMBER 2017

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AMERICAN GAMING ASSOCIATION

Keeping It Real Industry-wide code of conduct to shape future of responsible gaming policy

By Geoff Freeman, President & CEO, American Gaming Association

D

uring the first week of August, to mark the 20th anniversary of Responsible Gaming Education Week (RGEW), the American Gaming Association hosted two events to highlight the industry’s commitment to this important issue.

From July 31 to August 4, the collective casino gaming industry came together to reiterate foundational and evergreen responsible gaming education, programming and awareness with employees, patrons, policymakers, regulators and the public at large. However, responsible gaming is more than just a weeklong event; it’s our commitment. Every day.

At two roundtable events—one at Stockton University outside Atlantic City and one at the International Gaming Institute of the University of Nevada, Las Vegas—AGA released an updated version of its Responsible Gaming Code of Conduct, coalesced industry stakeholders to highlight shared commitment to responsible gaming and held two industry

roundtable events emphasizing the industry’s commitment to responsible gaming while highlighting the significance of the updated Code of Conduct.

AGA’s Code of Conduct seeks to increase industry efforts and build a greater cohesive dialogue among industry stakeholders on responsible gaming. The code is now applicable to all forms of gaming—land-based, mobile and interactive. In the past, it was primarily applicable to land-based gaming only.

The code also includes new consumer protection measures, including enhanced transparency around casino games’ odds and payouts, enhanced transparency in advertising, and ensuring that advertising or marketing will not misrepresent the probability of winning.

The gaming industry’s ongoing responsible gaming initiatives include research into effective treatment and prevention methods, the development and distribution of educational materials and comprehensive employee training. Addition-

The responsible gaming roundtable at Stockton University near Atlantic City included (l. to r.) Dean Hestermann, corporate director for issue management, Caesars Entertainment; Russell Sanna, executive director, National Center for Responsible Gaming (NCRG); David Rebuck, director, New Jersey Division of Gaming Enforcement; former New Jersey Governor James Florio; Geoff Freeman, president and CEO, American Gaming Association; and Patrick Harris of MGM Resorts International.

12

Global Gaming Business SEPTEMBER 2017

ally, materials and toll-free help-line numbers are placed throughout casino properties to give patrons an open channel for more information about responsible gaming.

AGA’s event at Stockton University brought together industry stakeholders including David Rebuck, director of the New Jersey Division of Gaming Enforcement; Dean Hestermann, corporate director for issue management, Caesars Entertainment; Patrick Harris of MGM Resorts International; and Russell Sanna, executive director of the National Center for Responsible Gaming (NCRG).

The group touched on the ongoing efforts by the industry to make sure customers are playing responsibly. We were honored to be joined by former New Jersey Governor Jim Florio, who commended the industry’s work on responsible gaming.

AGA’s event at UNLV brought together industry stakeholders including Congresswoman Dina Titus, Nevada’s 1st District; Alan Feldman, executive vice president, MGM Resorts International; Tim Richards, senior vice president of payments innovation, Everi; Dan Shapiro, vice president of strategy and business development, William Hill; Chris Giunchigliani, Clark County commissioner; Terry Johnson, board member, Nevada Gaming Control Board; and Bo Bernhard, executive director, UNLV International Gaming Institute.

Titus applauded AGA’s updated Code of Conduct, and said it raises the bar and sets the standard for responsible gaming practices. The panel discussed how the industry can be more proactive in pushing responsible gaming practices and how a legal, regulated sports betting market will put consumer protections in place so those betting won’t be taken advantage of by illegal bookies.

The gaming industry invites the public and policymakers to join industry-wide responsible gaming events throughout the year.

Follow Geoff Freeman on Twitter at @GeoffFreemanAGA.

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FANTINI’S FINANCE

Change Is Good Things are looking up for gaming, but where is the ceiling?

“The more things change, the more they stay the same.”

—Jean-Baptiste Alphonse Karr

T

here is a great deal of noise and commotion today about change, and the threats and opportunities it represents.

And, no doubt, there is plenty of change. The internet has radically altered business models and social interaction. It has accelerated the pace of globalization. Big data is revolutionizing marketing.

Indeed, the pace of all change is accelerating.

Equally no doubt, the gaming industry will have to adapt to this constant swirl of change.

INDUSTRY STATUS However, before we sell all our stocks in brick-andmortar casinos and rush out to buy virtual reality companies, let’s take a look around.

Commercial brick-and-mortar casinos in the U.S. last calendar year generated $42 billion in revenue, 5 percent more than the pre-Great Recession peak in 2007. Tribal gaming grew even more at 19 percent to $31 billion in the fiscal year ended June 30. Combined, U.S. casino gaming revenues reached a record $74 billion, up 12 percent.

Now, those aren’t stunning numbers, but they represent steady growth. Indeed, if you look after the Great Recession, U.S. casino revenue has risen 18 percent from the nadir.

NEW FORMS OF GAMING Every industry has risks and must adapt, but the shiny new forms of gaming that grab the headlines aren’t going to upset the casino apple cart anytime soon.

Daily fantasy sports is variously estimated to be a $3 billion business growing to over $5 billion by 2020.

The latest new-game du jour, eSports, is estimated by NewZoo to be a $696 million “economy” growing to $1.5 billion by 2020 with a gambling component of equal size. About half of that is in the U.S. Online gaming in New Jersey is running at an annual rate of $243 million and, while still growing, growth is slowing. If all 50 states offered fullblown iGaming like New Jersey—and we know 14

that isn’t going to happen—the U.S. market would be $8.4 billion.

So, add up all the new gaming and, at best, it would total $15 billion in 2020, or one-fifth of the size of the conventional casino industry today. The reality is these new forms of gaming will more likely generate $5 billion to $10 billion.

Social casino is growing with second-quarter revenues up 16 percent to $1.1 billion, according to Eilers & Krejcik Gaming.

However, social casino has two drawbacks: about 85 percent of the business is owned by 15 publishers, such as Zynga, DoubleDown and Playtika; and marketing costs eat heavily into profitability.

Further, social casinos may be more a benefit to casinos than a competitor, as more casinos launch sites providing a way to grow an enterprise’s database of players and to cross-market their brick-andmortar operations.

The same effect has been seen in New Jersey in real-money online gaming, where many players are new to the casinos and represent cross-marketing opportunities.

Casinos will take part in the new forms of gaming, as they are doing in New Jersey, Nevada and Delaware. One reason is that casinos, which were outsiders trying to get in over the past 20 to 25 years, are now established industries that employ thousands of voters.

When new forms of gambling are approved, you can bet that in many cases, such as online gaming in New Jersey and Delaware, legislators will make sure the operations are run through already-licensed casinos.

MILLENNIALS, TECHNOLOGY AND FUN The reason that casinos will remain strong businesses is because of the quote that begins this column—things are changing, but more so, they remain the same.

The millennial generation that so many obsess over has its differences, but unless human nature changes, they are more like previous generations

Global Gaming Business SEPTEMBER 2017

By Frank Fantini

than not. They want to gamble, play and compete.

Consider these myths: • Millennials are the first generation poorer than their parents. Pew Research found adult millennials have household incomes averaging $61,000. That is $1,000 better than baby boomers at the same age, and just $2,000 under Generation X. • They are independent and don’t want to do what employers say. A survey published in The Economist shows 41 percent of millennials believe employees should do as instructed, even if they don’t understand the reasons. The comparable figure for boomers and Gen Xers is 30 percent.

• Millennials aren’t motivated to succeed. Another survey reported in The Economist shows 59 percent of millennials are motivated by competition.

For boomers, the figure is 50 percent.

So, maybe millennials aren’t so much different.

More likely, the older generations—as they have throughout modern history—think the younger generation is different.

Then there is the role of technology.

In his famed book Mega Trends, James Nesbitt said that the more technology makes us remote from each other, the more we will want to reach out and touch each other. Maybe that explains the continuing growth in convention and meeting business despite the ever-greater capabilities of electronic communications.

Gambling is also a natural human activity. It is the entertainment form of an essential human quality and need—risk-taking. Gambling is not going away.

Finally, casinos are evolving into entertainment centers where gambling is a central activity, but just one of many. In brief, casinos are built around having fun… and having fun will never go out of style.

In conclusion, we are living in a world of fastpaced change, but an industry based on risk-taking as entertainment, providing the place for people to socialize and reach out to each other, and that is always catching the latest entertainment wave, is an industry that can continue to prosper.

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.fantiniresearch.com.

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AGEMupdate AGEM MEMBER PROFILE Gaming Arts, LLC, headquartered in Las Vegas, is one of the world’s most diverse gaming manufacturing companies.

Gaming Arts is the world leader in bingo and keno games and technology, and is now reinventing the casino floor. Since its founding, Gaming Arts has focused on developing innovative products to meet the ever-changing demands of operators, enhancing their bottom line and the player experience. Gaming Arts’ product line includes; • SuperBingo suite of EGMs—Revolutionary EGMs with highly differentiated content and game mechanics • Ultimate Bingo suite of EGMs—Incredible EGMs designed to offer the operator and player an entirely new play experience • Bingo Super Games—The world’s most diverse and vast library of high-stakes bingo games • Bingo Super Win System—The world’s first computerized bingo award game system • Optima System—The world’s most popular and robust keno game management system • Super Promo System—Amazing casino promotional games to attract players throughout their life cycle This year, Gaming Arts’ new product rollout will be the most ambitious in company history, including the launch of the flagship SuperBingo and Ultimate Bingo EGM lines along with progressive counterparts—more than 24 games unlike any the world has seen before.

These patented EGM game suites are the first entrants of an entirely new electronic gaming machine sector offering a revolutionary player experience, unlike anything seen before. Coupled with the exclusive patent-pending Phocus cabinets and toppers, these inspired EGMs are true game-changers not seen since the creation of the video poker game sector almost 40 years ago.

This year marks the birth of a new gaming sector created by Gaming Arts, featuring the SuperBingo and Ultimate Bingo EGM game suites which are radically different compared to the reskins or clones offered by most. The casino floor will now have entirely new gaming options for operators and players alike, attracting players from all gaming sectors, bringing back disaffected players and attracting the new younger player.

Please visit Gaming Arts’ website for further details of their products and services at gamingarts.com.

16

AUGUST 2017 KEY BOARD OF DIRECTORS ACTIONS • Reed Expo Senior Vice President Melissa Ashley; Allie Barth, senior director, industry services, American Gaming Association (AGA); and Todd Sheahan, event director, Reed Expo gave a short presentation at the recent board meeting regarding the forthcoming G2E show. New for this year’s show is the Matchmaking program, which leverages industry expertise by matching visitors to exhibitors based on their registration responses/objectives. Also, new to the show floor is the Innovation Lab and Keynote stage. The two keynote speeches will take place on Thursday, which should grow visitor numbers on the last day of the show. In 2016, the conference program had a more full agenda on the Thursday, which resulted in an 18 percent increase in attendance on that day. It is hoped the new program will build on these numbers. • The Nevada Gaming Control Board recently announced it has drafted proposed revisions to the minimum internal control standards (MICS) as a result of amendments to Regulations 5, 5A, 22 and 26C for wagering accounts. AGEM members were notified that comments on the new language will be accepted up to August 18, with a public workshop scheduled for September 20 in Las Vegas. • The 20th AGEM-AGA Golf Classic presented by JCM Global will take place on May 1, 2018 at Shadow Creek. To mark this special anniversary and in light of the prestigious stature of Shadow Creek, AGEM members agreed to increase the annual contribution to $60,000 on a one-off basis. The 2017 event hit a new high in raising $155,000, which will provide much-needed funds for the National Center for Responsible Gaming (NCRG). • AGEM members were updated with a draft document from the New Jersey Division of Gaming Enforcement (DGE), which is asking the industry for input on updated skill-based gaming regulations. The most Association of Gaming significant development is theEquipment creation of aManufacturers category for pure skill games that no longer need toJuly meet2017 the minimumhereturn player of 83 percent slot machines.

The draft alsocontributors reaffirms the allowance of adapSelected positive to the July 2017 AGEM AGEM to Index experienced a slightfor increase on Index included the following: mixed stock performance. The composite index tive play features in games for New Jersey. stood at 423.92 points at the close of July 2017, which members representswere an increase Scientific Corporation (SGMS) contributed • Two new Associate approvedof at1.97 the August meeting.Games Automated Systems America, Inc., points, or 0.47 percent, when compared to June 2017.

18.31 points due to a 40.34 percent increase in based in Glendale, California, is a provider of ATMs access to both retail and gaming cusThe AGEM Index reported a year-over-year increase for and cash stock priceservices to $37.05. the 22nd consecutive month and has climbed 129.24 tomers.

ArdentSky, LLC, based in Potomac, Maryland, is aInternational regulatory compliance company that standardpoints, or 43.9 percent, since July 2016.

Game Technology (IGT) reported a 5.72 percent increasemanagement. in stock price $19.04 izes and streamlines business practices associated with gaming compliance Thisto brings theand During the latest period, six of the 13 global gaming contributed 3.02 points. number of members to 151.reported month-to-month equipment manufacturers

Global Gaming Business SEPTEMBER 2017

increases in stock price, with two up by more than 10 percent. Seven manufacturers reported decreases in stock price during the month, with two posting doubledigit declines.

AGEMindex

Selected negative contributors included the following:

With its stock price falling 11.89 percent to

AU$20.23, Aristocrat Technologies contributed negative 11.75 points.

(ASX:ALL)

The AGEM broaderIndex stockexperienced markets produced positive results in stock performance. The composite index stood at 423.92 a slight increase on mixed Konami Corporation contributed negative 6.54 July. The S&P 500 reported a month-to-month increase, points at the close of July 2017, which represents an increase of 1.97 points, 0.47percent percent,decrease when compared points on aor 7.85 in stock to price to rising 2.1 percent to 2,470.30. Additionally, the Dow ÂĽ5,750.

June 2017.

The AGEM Indexincreased reported a 1.9 year-over-year increase for the 22nd consecutive month, and has climbed Jones Industrial Average percent to

21,891.12, while thepercent, NASDAQsince increased 3.3During percent 129.24 points, or 43.9 July 2016. the latest period, six of the 13 global gaming equipment Crane Company reported a 3.91 percent decrease in during the period to 6,348.12. manufacturers reported month-to-month increases in stock price,stock with two up to by $75.50, more thancontributing 10 percent. negative Seven manprice 2.41 points. ufacturers reported decreases in stock price during the month, with two posting double-digit declines.

AGEM

Exchange: Symbol (Currency)

Stock Price At Month End Percent Change Jul-17 Jun-17 Jul-16 Prior Period Prior Year

Nasdaq: AGYS (US$)

10.06

9.97

10.47

0.90

Ainsworth Game Technology

ASX: AGI (AU$)

2.41

2.16

2.16

11.57

11.57

Aristocrat Technologies

ASX: ALL (AU$)

20.23

22.96

13.80

(11.89)

46.59

(11.75)

Taiwan: 3064 (NT$)

16.20

17.25

37.30

(6.09)

(56.57)

(0.04)

NYSE: CR (US$)

75.50

78.57

56.72

(3.91)

33.11

(2.41)

NYSE: EVRI (US$)

7.46

7.40

1.15

0.81

548.70

0.05

OTCMKTS: GLXZ (US$)

0.74

0.78

0.31

(5.13)

138.71

(0.02)

Nasdaq: GPIC (US$)

10.62

12.50

9.30

(15.04)

NYSE: IGT (US$)

19.04

18.01

18.74

INTRALOT S.A.

1.18

1.20

Konami Corp.

TYO: 9766 (ÂĽ)

5,750

6,240

Nasdaq: SGMS (US$)

37.05

26.40

9.19

Nasdaq: TACT (US$)

8.85

8.45

8.02

Agilysys

Astro Corp.

Crane Co. Everi Holdings Inc. Galaxy Gaming Inc. Gaming Partners International International Game Technology PLC

Scientific Games Corporation Transact Technologies

(3.92)

Index Contribution 0.03 1.41

14.19

(0.17)

5.72

1.60

3.02

0.90

(1.67)

31.11

0.02

3,895

(7.85)

47.63

(6.54)

40.34

303.16

18.31

4.73

10.35

0.04

Change in Index Value

1.97

AGEM Index Value: June 2017

421.95

AGEM Index Value: July 2017

423.92

AGEM is an international trade association representing manufacturers of electronic gaming devices, systems, lotteries and components for the gaming industry. The association works to further the interests of gaming equipment manufacturers throughout the world. Through political action, trade show partnerships, information dissemination and good corporate citizenship, the members of AGEM work together to create benefits for every company within the organization. Together, AGEM and its member organizations have assisted regulatory commissions and participated in the legislative process to solve problems and create a positive business environment.

The AGEM Index is published monthly by Association of Gaming Equipment Manufacturers (AGEM) and Applied Analysis | Copyright Š 2017

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8/16/2017 8:29:04 AM

p. 18 CorpStructure:Layout 1 8/16/17 10:30 PM Page 18

How The Unwieldy Corporate Structure

By Chris Sieroty

R

Big isToo Big?

unning a modern casino company is about more than just hiring dealers and bartenders, or choosing the latest slot machines for the gaming floor.

Today’s publicly traded casino companies are multibilliondollar businesses with complex organizational structures. Gone are the days when a typical corporate structure was a CEO overseeing a general manager of a single property on the Las Vegas Strip or in Reno.

There are few single casino operators or smaller companies, with just a handful of properties left in the gaming business.

Recent acquisitions by Boyd Gaming Group, Red Rock Casinos, parent of Station Casinos, and Eldorado Resorts’ merger with Isle of Capri are examples of more industry consolidation.

Now a casino company CEO has multiple vice presidents reporting on the profitability of each hotel within its portfolio.

These companies, in some cases, have moved away from operating their own clubs and restaurants, finding greater profits in lease and revenue-sharing agreements with celebrity chefs or well-known club brands like Hakkasan.

Casino companies also have shifted some local responsibilities for slot machine buys or leases, marketing, purchasing, reservations and compliance away from individual properties into a central location, as a way to save on employee costs or to increase operating efficiency.

For example, MGM National Harbor in Prince George’s County, Maryland, and Caesars in Atlantic City still have compliance departments on property, but their staffs are smaller and more of the supervision of daily reports is done from a central location in Las Vegas. Marketing of those properties and reservations could also be handled from Las Vegas.

Central Casting

Sports books are generally operated by third-party companies.

The Cosmopolitan sports book is run by CG Technologies.

18

Global Gaming Business SEPTEMBER 2017

So, what are the advantages or disadvantages to centralizing some operations rather than allowing the individual properties to make their own decisions?

Marcus Prater, executive director of the Association of Gaming Equipment Manufacturers (AGEM), says for the largest slot machine companies, having a centralized structure allows for high-level corporate consistency and direction while allowing staff in those local markets to focus on the needs of the customer.

“And of course, the manufacturing side of the slot machine business is

?

p. 18 CorpStructure:Layout 1 8/16/17 10:30 PM Page 19

“A large corporate structure is not necessarily bad providing it is properly managed, with members having specific job duties with appropriate oversight.”

—Steve Gallaway, Managing Partner, Global Market Advisors

Caesars and MGM very specialized, and therefore demands that it typically takes place in a single location, or in the case of a company like Aristocrat, a combination of Australia and Las Vegas,” Prater says.

Analysts believe success is measured by how the chief executive runs the company.

“Depending on the CEO of a given company, views vary widely on the advantage or disadvantage of a large corporate structure,” says Steven Gallaway, managing partner of Global Market Advisors.

“A large corporate structure is not necessarily bad, providing it is properly managed, with members having specific job duties with appropriate oversight.”

In addition and equally as important, Gallaway says, properties “must always be given enough autonomy to ensure that they are able to operate their facilities in a fashion that allows them to cater to the local dynamics of their given market.”

Bo Bernhard, executive director of the International Gaming Institute at the University of Nevada, Las Vegas, believes the advantages are the efficiencies and consistencies that result from centralizing operations.

“Rather than a scattershot approach to marketing, for instance, a fully developed and consistently branded marketing message, with several tiers and properties, can be put into place,” Bernhard says.

And as these larger-scale companies increasingly face global competition for the travel, tourism and gaming dollars, their much larger-scale customer databases allow them to compete more rigorously in an international marketplace.

Currently, Caesars Entertainment owns and operates more than 50 properties while MGM owns 27 properties worldwide. MGM continues to build new regional casinos, with a $950 million resort in downtown Springfield, Massachusetts, scheduled to open next year.

Gallaway says he would judge whether a gaming company is too large “more on their stock prices and ongoing performance.” He adds that Caesars appears to be making good headway as it emerges from bankruptcy.

Caesars CEO and President Mark Frissora says he expects the company to emerge from bankruptcy in early October.

Caesars’ current operating structure includes Caesars Entertainment Corp. and Caesars Acquisition Co. Caesars Entertainment currently owns Caesars Acquisition, which includes U.S. and international properties the company owns and manages, and Caesars Entertainment Resort Properties.

Caesars Acquisition is partial owner of Caesars Growth Partners, which is partial owner of Caesars Interactive Entertainment and six casinos.

That complicated corporate structure will two split into two companies as part of its reorganization—a real-estate investment trust and an operating unit.

As for the slot machine and table game business, Prater says he isn’t sure that centralization made it easier to sell or lease products, “but certainly when it comes to marketing, branding and trade show functions, having headquarters drive the overall direction creates consistency in markets around the world.

“Typically, local offices are focused on selling and service,” Prater says.

“During my time at Bally back in the day, all of our marketing direction originated from Las Vegas, and the local offices followed along while prioritizing their efforts to benefit the customer and ensure the games had the best chance to succeed.”

“Rather than a scattershot Bernhard says the advent of these publicly traded companies “led to a revolution in the way that these companies approach to marketing, a were funded, which in turn allowed them access to capital fully developed and that allowed for bigger and nicer facilities to be built. consistently branded “Today, the nicest, most expensive buildings in the world, arguably, are the massive multibillion-dollar intemarketing message grated resorts. Generations ago, they were cathedrals!” with several tiers and For example, MGM owns 10 properties in Las Vegas, inproperties can be cluding Aria, Bellagio and the Mirage, while Caesars owns nine properties. put into place.”

“Of course, there are always regulatory concerns when—Bo Bernhard, Executive Director, ever we see increasing consolidation,” Bernhard says.

International Gaming Institute, “Questions in the antitrust sphere, for instance, can and University of Nevada, Las Vegas have arisen on the Las Vegas Strip, with four major players

SEPTEMBER 2017 www.ggbmagazine.com

19

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“The manufacturing side of the slot machine business is very specialized, and therefore demands that it typically takes place in a single location, or in the case of a company like Aristocrat, a combination of Australia and Las Vegas.”

—Marcus Prater, Executive Director, Association of Gaming Equipment Manufacturers

and a handful of smaller operators.”

On a more micro level, Bernhard says, “workers on the floor might worry that if they are fired from a job with one major company, they are eliminated from working for so many properties—and may not have the same kinds of options that a more diversified labor market might provide.”

Casinos Seek Third-Party Operators Gone are the days when casino bosses controlled everything on their properties.

The idea of leasing out retail, club, sports book or restaurant space to a third-party operator is now commonplace in the resort industry.

Analysts credit casino companies with being willing to surrender some control in most cases in return for a greater reward when a specialist with drawing power operates clubs, restaurants or other amenities that are as much of a draw as the casino.

The Cosmopolitan of Las Vegas wasn’t the first to seek out celebrity chefs, but the resort, which opened in December 2010, made the business decision to attract chefs who didn’t already have restaurants in Las Vegas.

Despite the restaurant business being risky, there is always someone willing to bankroll the next Jose Andres or Wolfgang Puck. Deals with

When Caesars Entertainment emerges from bankruptcy, all of its properties, including Caesars Palace, will be owned by a real estate investment trust

20

Global Gaming Business SEPTEMBER 2017

celebrity chefs or well-known brands make financial sense in good times and recessions for both parties.

The idea of using third-party operators isn’t new.

For years, casino sports books have been run independently, with operators paying rent and a percentage of the profits to the house. Casino operators like that setup because it allows a third party with special expertise to set the odds, accept the wagers and take all the risk.

“Sports books, like baccarat, are subject to large monthly swings in win and loss,” Gallaway says. “The larger the number of sports books owned and operated by an individual, the easier it is to reduce the risk of these swings in revenue.”

Gallaway says as the revenue levels of sports books are minimal in comparison to the gaming operators, many companies find it easier to outsource the operations of such an entity to a third party.

William Hill and CG Technology are two bookmakers that operate race and sports books in Nevada.

“This way, the operator doesn’t have to focus on a small revenue-generating asset with large monthly swings, but is able to still benefit from the ancillary gaming and non-gaming revenue that is generated by players making the wagers at a sports book,” Gallaway say.

But Gallaway adds it will be interesting to see if or how this approach changes from landbased operators as the reality of sports betting in other states and online sports betting come closer to reality.

With the U.S. Supreme Court agreeing to hear New Jersey’s case to legalize sports betting despite the federal ban, “the implications could be significant and be highly beneficial to the overall gaming industry,” he says.

The Professional and Amateur Sports Protection Act (PASPA) of 1992 prohibits sports betting in all states except Nevada, with partial exemptions for Delaware, Montana and Oregon.

Not all sports books are run by third-party companies. Wynn Resorts, Station Casinos, MGM and Caesars still operate books inhouse.

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p. 18 CorpStructure:Layout 1 8/16/17 10:30 PM Page 22

REITs: A New Business Model For Casinos

R

eal estate investment trusts, or REITs, continue to be a popular and financially beneficial way for gaming companies to extract value from their real estate.

Caesars Entertainment is the latest gaming company to split its corporate structure in two.

The Las Vegas-based company will split into two companies as part of its reorganization—a REIT that will own the land, hotels and casinos, and an operating unit that will rent the properties from the REIT, hold the gambling licenses and run the businesses.

Caesars expects to emerge from bankruptcy in early October.

Penn National Gaming was the first gaming company to launch a REIT when it spun off Gaming and Leisure Properties (GLPI) in 2013.

Since its creation almost four years ago, GLPI has completed more than $5 billion in transactions.

GLPI acquired the real estate owned by regional gaming operator Pinnacle Entertainment for $4.75 billion in an all-stock deal in July 2015 to lease the casinos back to Pinnacle.

GLPI, which owns real estate associated with 38 casinos, recently completed an $82.9 million acquisition of Bally’s Casino and Resorts Casino, both in Tunica, Mississippi.

In October 2015, MGM announced it would create a REIT called MGM Growth Properties in a tax structure that does not include a taxfree spin-off. MGM Growth Properties went public in April 2016.

During MGM’s second-quarter earnings conference call, CEO Jim Murren said he expects National Harbor to be sold to MGM Growth Properties by the end of the year.

At some point in the future, MGM’s $950 million casino in downtown Springfield, Massachusetts, which is scheduled to open next year, will also be sold to the REIT. According to the terms of the REIT, MGM leases the properties under a long-term, triple-net master lease with an initial 10-year term and four five-year extensions at MGM’s option.

Currently, MGM Growth Properties consists of 11 resorts, including Borgata in Atlantic City and the Mirage in Las Vegas.

REITs have existed for more than 50 years in the U.S. after Congress granted legal authority for the trusts in 1960 as an amendment to the Cigar Excise Tax. REITs do not pay federal income taxes, but are required to distribute 90 percent of their taxable earnings to shareholders.

In December 2015, Congress passed legislation to eliminate tax-free structures such as GLPI. However, Caesars can still create a tax-free REIT because the company submitted a request to the IRS in March 2015, eight months before the deadline.

While some gaming executives remain bullish on REITs, several analysts were cautious about more casinos spinning off their properties into REITs and whether they could survive another recession.

Alex Bumazhny, director of gaming, lodging and leisure research at Fitch Ratings, believes a rising interest rate environment is the “principal deterrent to further gaming REIT transactions.”

In a recent report, Bumazhny wrote that gaming revenues “are not ideal for supporting the long-term, largely fixed, triple-net leases found

22

Global Gaming Business SEPTEMBER 2017

MGM’s National Harbor will be sold to MGM Growth Properties by the end of the year. MGP will own the property and lease it to MGM, which will operate the Maryland casino.

in gaming REITs.” On the other hand, a REIT does have its advantages, and has worked out well for Penn and may likely bode well for others, according to Steven Gallaway, managing partner of Global Market Advisors.

“From a short- to mid-term goal, a REIT does allow for additional return to investors due to market evaluations of the companies and certain tax advantages that free up additional capital, which enhances returns as well,” Gallaway says.

What has yet to be seen is how the operating assets would survive a large economic downturn.

“Given the high levels of fixed rent for the operating entity when going to a REIT structure, it would likely be more difficult for the operator to meet its financial obligations in a recession without defaulting,” Gallaway says.

For a REIT that does have close links to an operator, Gallaway says it is not unlikely that the REIT would choose to seize the assets of a non-sister company that is in default rather than work towards a workout with a subject operator.

“Perhaps this is the reason why many public gaming companies have chosen to not go with a REIT structure,” he says.

—Chris Sieroty

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p. 24 women:Layout 1 8/16/17 10:38 PM Page 24

Ladies

FIRST

The role of women in the gaming industry is growing

T

here is no question that women play and have played important roles in the development of the casino industry. After all, the first person granted a casino license in Nevada was a woman, Mayme Stocker. She had opened the Northern Club on Fremont Street in Las Vegas in 1920 and in 1931, when the state officially legalized gaming, she was the first to receive a coveted license.

In 1950, Sarann Knight Preddy became the first black woman to open a casino, Hawthorne’s Tonga Club, in Las Vegas. Preddy became a leading figure in the civil rights movement in Las Vegas.

Jeanne Hood became president of Hyatt Nevada upon the death of her husband, Dave, in 1977, and operated the Four Queens Hotel in Downtown Las Vegas. She later was president of the Elsinore company, which owned and operated the former Playboy casino in Atlantic City. Hood was a leader in the development of technology in gaming.

And maybe the queen of them all was Claudine Williams, who owned her first gambling establishment before the age of 21. She later built the Holiday Casino on the Strip along with her husband, Shelby. After Shelby’s death, she sold the Holiday to Holiday Inns (which had already bought the casinos founded by Bill Harrah in Northern Nevada) in 1983. She remained the chairwoman of the hotel for many years afterwards, and was well known throughout Las Vegas for her philanthropy and good works.

These trailblazers were just a few of the women who paved the way for the casino executives of today. They proved that a woman could do anything she wanted in the casino industry and would be rewarded for hard work, diligence and creativity.

The profiles we offer here are proof that the women executives of today are taking the lessons learned from the trailblazers and extending them to all women who enter the industry. These women acknowledge the help and vision that showed them the way and reach out on a daily basis to other women to assist them in their career development.

The women profiled in this issue were chosen by the board of directors of Global Gaming Women, an organization founded by the American Gaming Association and now independent, with a mission to support the development and success of women in the international gaming industry through education, mentorship and networking opportunities. For more information on Global Gaming Women, visit GlobalGamingWomen.org.

24

Global Gaming Business SEPTEMBER 2017

p. 24 women:Layout 1 8/16/17 10:38 PM Page 25

Moore For All Eileen Moore Regional President, The Flamingo, The LINQ and The Cromwell, Caesars Entertainment

F

or Eileen Moore, her entry into the gaming industry was a happy glitch.

Growing up in a family of hoteliers, she was already headed to a career in hospitality.

“As a child, I got bitten by the travel bug and got to stay at a lot of different resorts and hotel city properties, and fell in love with the business,” she says. “So I had a passion for hospitality at a young age.”

She followed that passion to hotel school and graduated with a degree in traditional hotel management, starting a career in that field. But then something happened.

“In 1999, I received a call that a gaming company was actually looking to invest money in a hotel revenue management system that would incorporate gaming revenue,” she says. “And the rest is history. I joined Harrah’s at that time, and I’ve stuck with not just the company, but the industry since then, and I love it.”

In the hotel business, she did a variety of jobs.

“I started off in a restaurant as a hostess and a waitress. And then I moved over to the operations side in the hotel, and worked at the front desk, reservations, and did a management trainee program, where I pretty much did every department in the hotel—housekeeping, laundry, bell desk, concierge, you name it.”

She says the training program opened her eyes to all the different departments in a hotel and how they must work together to ensure success for the overall enterprise.

“It was really beneficial, because it afforded me the opportunity to learn about all departments and appreciate their effort,” she says. “Now I lead such an amazing, hardworking group of people, but let them know that I’ve been in their position, and I understand that it’s not an easy business. These jobs are hard, but they’re absolutely and tremendously fulfilling. They play a vital role in taking care of people when they’re away from home.”

Moore says the front desk position is crucial to the success of any hotel.

“That’s the first point of welcome in the guest experience and in their journey, so you really get to set the stage for their entire visit to the property,” she says. “But it’s also the place where you hear if there are things that didn’t go quite right with their stay. So your opportunity to interact with guests, from a welcoming perspective at the height of anticipation and hope, but also when things don’t go perfectly, which happens every day in this business, and how you can turn that around for a guest, is really where the magic happens.”

Strategy to Move Up Despite her love for operations, Moore started her career in a strategic position.

“I worked for my first seven years in the company on corporate strategy, particularly in the areas of revenue management and slot and gaming revenue management, and then transitioned into property operation,” she says.

One of her mentors, John Payne, gave her the opportunity to make that transition.

“He gave me my first shot on the operations side, as assistant general manager in New Orleans, post-Katrina. Not a lot of folks were raising their hand for the opportunity, but John thought of me, because I had been asking for quite some time to get into operations. We were opening our first-ever hotel in that market, which went to the list of top 10 hotels in the United SEPTEMBER 2017 www.ggbmagazine.com

25

p. 24 women:Layout 1 8/16/17 10:36 PM Page 26

WOMEN IN GAMING 2017

“I’d love to see Eastern Strip For Moore, her job heading up the Flamingo, the Linq more women in and the Cromwell keeps her busy. Her properties esthese top spots. caped the strictures of the Caesars bankruptcy because they were owned by a different Caesars subsidiary, so I think we can do she’s been able to not only maintain her properties, but a tremendous also to upgrade when necessary, a process that is ongoing at the Flamingo. With a $7 million renovation of job, and by the casino’s convention space completed, Moore is tapping in to moving on to more room renovations.

“We just started a $90 million renovation of two of more women, our towers—towers 5 and 6—during which we’ll fully I think it only renovate 1,200 of our rooms, which is about a third of benefits the our inventory at the Flamingo,” she explains.

The strength of the Flamingo, says Moore, is the industry.” brand recognition.

States in year one of operations from Condé Nast. So that was a huge pride point for us.”

Payne later appointed Moore to her first GM slot at Horseshoe in southern Indiana.

As for women mentors, Moore cites two: first, Marilyn Spiegel, who was head of human resources for Harrah’s and later GM at Paris and Rio in Las Vegas.

“That really inspired me,” says Moore, “and I followed my path, somewhat, on some of the decisions and experiences that she had.”

The second woman she admires is Janet Beronio, also a regional president, who heads up most of the tribal operations for Caesars.

“She has had a tremendous 20-plus-year career and was a role model for me,” says Moore.

While learning from these women and others, Moore says they laid the groundwork for her career and eased her way in career advancement.

“I’m very fortunate to be of a generation where the women that came before me really broke through the glass ceiling,” she says. “A lot of people wear a badge of honor that they’re the first female this or the first female that. I can honestly say I haven’t been the first female anything, and I’m happy with that. I remember when I got the position here on the Strip, I actually was the fourth or fifth female Strip president, and that was just fine by me. I’d love to see more women in these top spots. I think we can do a tremendous job, and by tapping in to more women, I think it only benefits the industry.”

Circle Game Moore has picked up the mantle of her mentors to further that goal, and helped to create “Lean In Circles,” small groups of women who meet regularly to learn and grow together. Supported by Caesars, these circles have been extraordinarily successful. She cites Sheryl Sandberg’s best seller, Lean In: Women, Work, and the Will to Lead, as her model in establishing these groups.

“Since 2013, we have over 11 circles and 70 women who are participating in these circles,” she says. “It is a peer-to-peer mentorship circle, and instead of giving advice from a traditional mentor/mentee, the circle actually shares experiences, which allows for more enriching experience, and people to feel as if they have their own personal board of directors. And we’ve seen a tremendous amount of success.”

As a result of the success of the Caesars program, Global Gaming Women, where she is a founding member, asked her to take on the mentorship program for that groundbreaking organization.

“We just launched the program in January of this year, and we have 81 women participating across the country in circles,” she says. “I did a meeting with the circle moderators in June, and they reported back 100 percent that the women are fully engaged. They’re networking at a higher level than they’ve ever seen, and getting some great insights to really give them the confidence to raise their hand, and look for other opportunities, and to move up. So, it’s been really fantastic to see.”

And the circles have produced concrete results, says Moore.

“Of the women who participated in the circles, 66 percent achieved promotions within the company, or roles with greater responsibilities,” she says.

“So, there really is some magic to this circle environment that provides a place for people to talk confidentially, and get great insight to empower them to take the next step in their career.”

26

Global Gaming Business SEPTEMBER 2017

“We turned 70 in December of last year, and we had a huge anniversary party,” she says. “We want to return the Flamingo to its iconic and legendary status. We have one of the most authentic brands—one of the most globally recognized, and people from all around the world want to know and interact with the Flamingo. It’s completely authentic, and so that’s what we’re investing in. And last year, at TripAdvisor, we were actually the No. 1 most-reviewed hotel in the world.”

A newer icon under Moore’s leadership is the Linq and the High Roller observation wheel.

“It’s such an attraction,” she says, “and it’s visible from most spots on the Strip and the surrounding city.”

Moore has more control now over the Linq promenade, a retail/dining/entertainment area leading up to the High Roller.

“Recently, we’ve added things like the In-N-Out, where there are just lines constantly,” she says. “And lines aren’t necessarily a bad thing, as long as they’re moving.”

And even the smaller Irish-themed O’Sheas casino, at the entrance to the Linq promenade, has been drawing crowds.

“I’m always fascinated by all the guests that are visiting there, that are not necessarily just staying with us,” she says. “They’re coming in from competitor properties to see O’Sheas. It’s a must-see destination. For such a little spot, that’s really cool.”

But she reserves her highest praise for the Cromwell, a boutique hotel that replaced Bill’s Gamblin’ Hall in 2014, focusing on high-end luxury and personal service. The property features the venerable and popular Drai’s Beach Club & Nightclub, as well as Giada, the first restaurant opened by celebrity chef and personality Giada De Laurentiis.

“At the Cromwell, we wanted to be a standalone boutique hotel, and really appeal to a refined hospitality customer that wants a world-class experience unlike any other,” she says.

Moore says the recent honor of being named by the USA Today Reader’s Choice as one of the top 10 casinos in the United States is testimony that they accomplished that goal.

“That’s phenomenal, given the size of the property, with only 188 rooms,” she says, pointing out that the other winners were all mega-resorts—Caesars Palace, Mohegan Sun, Pechanga in California, just to name a few.

“It speaks to the teammates and the associates at Cromwell, and the service that they provide. When you’re on that property, it feels different and special,” she points out.

—Roger Gros

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Good Counsel Phyllis Gilland Senior Vice President, General Counsel, Secretary and Compliance Officer, American Casino & Entertainment Properties

I

“ t was very fortuitous timing,” Phyllis Gilland says of her entry into the gaming world.

With 30 years of legal, compliance and business experience, Gilland was working as general counsel and chief financial officer for a national construction group. When the company sold, she moved to Las Vegas to help close the sale—and never looked back.

Since 2008, Gilland has been senior vice president, general counsel, secretary and compliance officer at American Casino & Entertainment Properties, where she oversees all corporate legal matters, compliance and regulatory issues, human resources and surveillance, and is responsible for the retail, risk management and security investigations departments.

Because of her strong business background, Gilland’s transition into gaming was virtually seamless.

“At a certain high level, there’s a lot that’s less industry-specific and more requirement-specific, regulatory-specific,” she notes. “The regulations change, but the internal controls, the regulatory aspects are very similar. As general counsel, the ‘general’ is an important part. My job is to be knowledgeable about quite a few things so I can make sure all the regulatory and business situations are handled correctly.”

Gilland has enjoyed witnessing the evolution of gaming, including new casino amenities and innovations in online, mobile and social gaming.

“There’s always something under another rock, so just when you think you’ve heard everything, you find something new,” she says. “I get to do something different all the time. I love the fact that we have not just casino gaming but retail, restaurants and entertainment. I like the breadth and depth of what we do.”

Gilland’s passion is education. She’s involved with organizations like the Girl Scouts and Goodwill Industries, and urges women in the industry not only to volunteer but to serve as mentors, sponsors and supporters to help others succeed. “I like to see people enabled to make their way in the world, to see an opportunity and be prepared for it,” she says.

Gilland also encourages financial literacy. She thinks everyone should know how to read a balance sheet or income statement and understand return on investment. Knowing what company leaders are looking for, recognizing opportunities when they arise, and talking less and listening more are other valuable traits.

“I sort of believe if you do a good, job you’ll get noticed,” she says.

“Most of the senior people I’ve met just want people who do good work.”

In June, Golden Entertainment announced it is acquiring ACEP’s four properties. Gilland says her team is working on the transition, which will likely be complete by the end of 2017. She looks forward to being a part of the industry’s continued growth.

—Erica Sweeney

The Sky’s the Limit Tracy Cohen Director of Marketing, TCSJohnHuxley and Director of Europe, Association of Gaming Equipment Manufacturers

W

hen Tracy Cohen graduated with a degree in interior design, she never planned on a career in the casino industry. But two decades in, she can’t imagine being anywhere else.

Her first gaming job was in design, but Cohen soon transitioned to marketing. She now serves as director of marketing at TCSJohnHuxley, handling trade shows, product launches and many other activities.

“I love the variety,” she says.

“Every day it’s different. Because we’re a global company, there are always things to do in different markets. I keep abreast of market trends in the business. I get to do everything I love, almost on a daily basis.”

The industry’s speed of change and openness to technology also keep things exciting, says London-based Cohen.

“We’re always moving, constantly developing new products. I work on the product development team, and I love the fact that we’re applying new technology to traditional elements of gaming. The way things have changed and evolved means we’re always looking for the next thing.”

In 2011, Cohen was also named director of Europe for the Association of Gaming Equipment Manufacturers, a part-time supportive role for Europeanbased AGEM members. She says she felt the job description was written just for her, because the role allows her to combine her marketing expertise and wideranging industry network.

Though there were fewer women in the gaming industry when she started, Cohen says technology and online gaming are paving the way for more.

“It’s not just roles like mine, like marketing, which are traditionally femalefocused,” she says. “There are a lot of women developers and engineers and women in jobs of all types. Gaming is a great industry with lots of opportunities, especially now with the different sectors.”

Cohen appreciates each opportunity she’s been given and is committed to supporting younger people in the industry—men and women. And she’s a firm believer in two-way mentoring.

“People who are younger have knowledge and experience in new technologies and different things than I might have,” she says. “Sometimes you can get very stuck in your ways and have a certain viewpoint that you want to keep to, and you don’t even realize you’re doing it. Being open to new ideas is beneficial both ways. It’s really important for me to mentor young women, but also I like the idea of them ‘mentoring up’”—allowing the student to become the teacher, for the benefit of both.

Still passionate about the casino industry, Cohen says that passion is the key to her success, and to success for anyone who enters the field.

“I think if you love what you do, generally, the sky should be the limit.”

—Erica Sweeney

SEPTEMBER 2017 www.ggbmagazine.com

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WOMEN IN GAMING 2017

New Horizons Libby Francisco

Chief Operating Officer, Desert Diamond Casinos and Entertainment

S

Heart and Soul Michelle DiTondo Senior Vice President of Human Relations, MGM Resorts International

T

o some in the modern workplace, human resources is the ultimate bureaucracy, a place where rules rule and people are secondary.

Michelle DiTondo disagrees. The senior vice president of HR at MGM Resorts International— who leads a team in charge of 71,000 employees worldwide—calls her department “the heart, the soul and the center” of the global gaming firm.

“Human resources is responsible for creating and driving the company culture—and that puts us in the center of everything that happens at MGM. We touch every single employee, from (Chairman and CEO) Jim Murren to our frontline employees. There’s a lot of satisfaction in that.”

DiTondo is clearly passionate about her job— though she never aspired to or even actively pursued the profession.

“No kid dreams of being a human resources professional,” she says with a laugh. “People just happen into it.”

She studied to be a teacher, but the recession of the early 1990s made jobs scarce. So she landed in HR, working for the U.S. military and American Express before joining MGM in 2006. “What I found is that human resources is just as rewarding as being an educator,” she says. “You get to see people grow and develop.”

Born in Okinawa, Japan, DiTondo grew up in Las Vegas. Her friends’ parents were casino change attendants and maids, her mother a seamstress who never had two days off in a row in 25 years.

Her background gives her a special appreciation of hourly workers and their challenges.

“Our role is being the champion and advocate

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for employees. We have to have empathy and put ourselves in someone’s shoes in a work situation.”

When an employee must be terminated, “that person needs to go home to explain to their family what happened at work. We need to treat them in a way that still respects them as a human being.”

Though DiTondo says she was never held back “because of who I was or what I looked like,” she acknowledges she may be an aspirational figure for other young women and minorities.

“I think our employees appreciate seeing someone who looks like them in our executive offices, people like Phyllis James (executive vice president and chief diversity and corporate responsibility officer), Lilian Tomovich (chief experience officer) and Elisa Gois (chief analytics officer). I think all of us play a role, representing both women and diverse employees.

“Being multicultural brings perspective to the table,” she adds, “but I also think everybody brings value. If our workplace was made up of Asian American woman, we’d have a diversity problem.”

Currently, she’s excited about a new marketing and guest experience initiative that will be rolled out by MGM this fall. Called “Welcome to the SHOW,” it centers on four guest service standards: Smile and greet; Hear their story; Own the experience; and Wow the guest.

What characteristics does she look for in a job candidate?

“Optimism. I like people who can creatively think and are curious about where problems will occur. I like problem-solving and brainstorming. I like people who think things are going to be better in the future and know they can have a role in that.”

A self-described hockey mom and wife of an elementary school principal, DiTondo lives by the motto, “Live well, love much and laugh often.”

For her, it’s all in a day’s work.

—Marjorie Preston

Global Gaming Business SEPTEMBER 2017

tuck in a layover in Houston recently, Libby Francisco never stopped doing business.

She conducted a conference call at the airport, and another in a taxi. She worked on a tribal compact for the Tohono O’odham Nation, took progress reports on the nation’s planned $400 million expansion in Arizona’s West Valley, and finalized a compliance matter. The next day, in Memphis, she viewed and approved design plans for the resort.

There’s no such thing as a typical day for the chief operating officer of Desert Diamond Casinos and Entertainment, the nation’s gaming arm, which operates resorts in Sahuarita, Tucson, Glendale and Why, Arizona.

Her impressive success notwithstanding, Francisco never set out to work in the gaming industry.

In the 1990s, she was a business manager at the University of Arizona, and expected to retire from there.

But political infighting made her consider a change.

A chance meeting with Ned Norris, then Desert Diamond casino manager, now chairman of the Tohono O’odham Nation, was “a godsend.”

“I said, ‘Hey Ned, do you happen to have any jobs over there?’ Three months later, I began working at the gaming enterprise.”

Despite strong administrative skills, Francisco had to “crash-course” to learn the business of gaming. She started as shift manager, then was tapped to run the poker room. She almost declined.

“I knew I was going to get pushback. All the shift managers were male. All had applied for position. They weren’t happy I got it. And they knew I was going to be strict.” As she later discovered, some staffers actually laid bets that their new boss wouldn’t succeed. But she finally won their respect, cooperation and loyalty.

More than 20 years later, she resides in the Csuite (in 2006, she even filled in for a time as interim CEO). Not bad for one of seven children of a housekeeper and day laborer, who grew up in a one-bedroom house in Tucson. In a 2014 article for this magazine, Francisco recounted a time at Stanford, which she attended on scholarships from the university and the nation, when she had a single dollar to her name. It was her “as-God-is-my-witness moment.”

“I said, ‘This may be my life today, but it doesn’t have to be my life tomorrow.’”

With the expansion at Glendale on the horizon—in June, after a protracted battle with the state, the Nation won the right to add Class III games—

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ANNIVERSARY

2 0 0 0 A T T O R N E Y S | 3 8 L O C A T I O N S W O R L D W I D E˚

Focusing on Your Social Gaming Needs the COO is busier than ever. Desert Diamond West Valley will expand from 35,000 square feet to 75,000 square feet and bring in poker, blackjack and bingo games. Some 1,000 bingo-style slots will be converted to regular slots.

That means more jobs, and Francisco is spreading the word. “Some people have no idea what the enterprise can offer in terms of job opportunities, job growth and development, particularly tribal members. We operate a multimilliondollar business on a 24/7 schedule. That’s a huge responsibility.”

In her rare off-hours, Francisco enjoys spending time with her partner of 27 years, Nyla, two godchildren, and her nephew’s two grandchildren.

“We do something as simple as going to the park and wearing ourselves out. And we have a blast.”

Asked what traits lead to success in gaming, she says, “I hear people compliment my integrity. I have to do the right thing for the enterprise, for the nation and for my family. That guides me.”

She adds, “If you want to move up within gaming management, be willing to give up a little of your personal time. The 24/7 part is no lie.”

As for the current climate for women, she says, “I can remember when I was the only female at the boardroom table, but things have changed.

Our new General Manager Danielle Chilton is a tribal member and worked hard to sit at the table.

Karen Listo was recently promoted to slot director with the enterprise. Argelia Medina was recently promoted to director of human resources. It’s very exciting.

“The glass ceiling isn’t as high as it used to be.”

—Marjorie Preston

Edward Chansky and Erica Okerberg are part of a multidisciplinary team of Greenberg Traurig attorneys counseling clients on a broad range of issues important to social gaming. In addition to gaming and regulatory compliance, the team includes experience in obtaining and defending patents for emerging gaming technologies, such as biometric ID systems, video poker games and Internet-based games, as well as traditional technologies such as automatic card shufflers, live card games, casino promotions, and other gaming-related technologies.

Ed has decades of experience in all aspects of eCommerce, contests, and promotional offers, including sweepstakes, social gaming, social media, and the complex intersection of criminal and civil laws regulating gaming, promotional contests, and advertising. He has helped many companies create engaging digital experiences for consumers designed to stay within the bounds of these various laws.

Erica focuses her practice on gaming-regulation law, including licensing and compliance in multiple jurisdictions. She also works regularly with creators of social gaming platforms, video game tournaments, and sponsors of other social gaming and sweepstake opportunities.

Edward B. Chansky

Erica L. Okerberg

702.599.8016 chanskye@gtlaw.com

702.599.8073 okerberge@gtlaw.com

Global Gaming Practice Regulatory | Operations | AML | IP | Labor | Litigation | Privacy | Real Estate Acquisitions | Financing Learn more at gtlaw.com/capabilities/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. ©2017 Greenberg Traurig, LLP. Attorneys at Law. All rights reserved. °These numbers are subject to fluctuation.

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WOMEN IN GAMING 2017

Where Everybody Knows Your Name Stana Subaric

Senior Vice President of Human Resources, Affinity Gaming

S

tana Subaric can attest that bigger isn’t always better. A veteran of two global gaming giants—Caesars Entertainment and the Las Vegas Sands Corp.—she once presided over 8,000 employees at the sprawling Venetian and Palazzo in Las Vegas, which together make up the largest luxury resort in the world.

But in August 2016, Subaric happily jumped ship, joining Affinity Gaming as senior VP of human resources when the locals company was acquired by Z Capital Partners LLC. Affinity has 11 properties in four states: Nevada, Colorado, Missouri and Iowa.

“With fewer than 3,000 employees, it’s more of a close-knit family,” she says. “Here, you really can know everybody’s name.”

Subaric was first recruited to HR in 2003, hired by Chris Cappas, former head of employment and training at Harrah’s.

“I had no HR experience or casino experience, but she took a chance on me, and saw more in me in than I saw in myself. I kicked off my career as an HR coordinator at Harrah’s Las Vegas, and that really built my foundation.”

A first-generation American—her mother is from Peru, her father from Bosnia— Subaric represents cultural diversity in an industry where guests and workforce alike hail from all four corners, with different cultural norms and expectations. “In my family, we grew up speaking three languages (English, Spanish and Serbian),” she says. “I understand that different cultures adapt differently.”

But some things are the same across the board—like the importance of energy, an upbeat attitude, and great customer service to success in the hospitality field. Affinity is now rolling out a new employee program based on “five simple behaviors,” says Subaric. “Give a friendly greeting to your guest. Present a positive attitude. Offer some assistance. And follow up to ensure guest satisfaction.” The last may be the most important: “Invite the guest to return.”

Subaric says she didn’t encounter major roadblocks in her career because of her gender. “But I had to learn to be more confident and ensure that my voice projected.

And I’m proud to say I continue to see women joining the executive ranks at Affinity, like Paige Lion, who joined as our new vice president of information technology and chief information officer in July.”

These are good times for Affinity. In January, President and CEO James Zenni reported that for 2016 the company delivered “the fastest-growing adjusted EBITDA in the United States gaming sector, and consistently executed on its strategic initiatives, including rebuilding its executive team.”

As one who was encouraged by a mentor, Subaric encourages others to achieve their personal and professional best. “It’s so important to surround yourself with individuals who make you better and stronger, who challenge you. When I look at HR leaders at our properties, I want to mentor them, influence them and have them go after their dream.”

Her motto is a simple one, which applies to work as well as family: “Build the house you want to live in.”

For her, the house is Affinity. “I will forever be grateful for my career experience at Harrah’s, Caesars and Sands,” Subaric says, “but Affinity is where I’m meant to be.”

—Marjorie Preston 30

Global Gaming Business SEPTEMBER 2017

A Seat at the Table Staci Columbo Alonso Executive Vice President/Chief Marketing Officer, Station Casinos

I

n the late 1980s, Staci Columbo Alonso kickstarted her 30-year gaming career as an hourly employee in an Atlantic City players’ club.

“I simply fell in love with the business, couldn’t get enough of it,” she says.

“New Jersey was offering some great opportunities in the ’80s, and I was fortunate to be a part of it.”

Back then, one of the greatest compliments Alonso received was being called “a sponge,” because she wanted to be exposed to all facets of the gaming business. Her particular interest was marketing, and she learned it well. Since 2013, Alonso has been executive vice president and chief marketing officer for Nevada-based Station Casinos, where she leads the IT, marketing, communications, human resources and gaming development divisions.

“My role still includes marketing, and I could never turn that off—I love every bit about marketing,” she says. “But I love being continuously pushed out of my comfort zone and my own knowledge base. Being able to apply that in my role has been great.”

Alonso, who grew up just outside Philadelphia, made her way in the industry by grabbing lateral positions as well as promotions. With each move, she determined to learn all she could about that role, and racked up valuable experience along the way. “Over the years, almost every position that reported to me, I once held. And that’s allowed me to be the voice of the operation,” explains Alonso, recipient of the 2012 Casino Marketing Lifetime Achievement Award.

Helping the next person in line is important to Alonso, who encourages women in the industry to take risks, be kind to themselves, love the job, and most of all, to assert themselves in professional settings.

“Early on, I had such a hard time taking a seat at the table,” she explains. “The best part now is that I can sit back and watch people on my team take their spot. I can lead from behind. It’s been full circle for me.”

Though she recognizes the value of her own hard work, Alonso says she feels fortunate to have had so many opportunities to advance in the industry. And she doesn’t hesitate to give back. She’s passionate about supporting the Shade Tree, a Las Vegas shelter for homeless and abused women and children. In 2007, she founded a pet boarding facility at the shelter called Noah’s Animal House (a Reno location is now in the works). Having access to their pets can help abuse victims heal, and reduces the likelihood that they will return to their abusers, Alonso says.

“My tagline is that I work to support my nonprofit habit,” she jokes.

“I don’t stop very often. Life’s too short. I just feel like productive is the better way to move.”

—Erica Sweeney

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WOMEN IN GAMING 2017

Maureen Keenan

Customers and Team First

Vice President of Finance, Seminole Hard Rock Hotel & Casino Tampa

Cath Burns

The Hub of the Wheel

W

hen Maureen Keenan describes her career ascent—from accounts payable clerk in the early days of Atlantic City gaming to vice president of finance at the Seminole Hard Rock in Tampa—she attributes much of her success to luck.

Which just goes to prove the axiom, “The harder you work, the luckier you get.”

Keenan grew up in Toms River, New Jersey, a stone’s throw from Atlantic City, when gaming at the shore resort was just a twinkle in Governor Brendan Byrne’s eye. In 1983, armed with degrees in accounting and organizational management (she describes the latter as “basically IT, finance and HR”), she hitched her star to the new industry, starting at the Tropicana, then an Aztar Corp. property on the AC Boardwalk.

“I just grabbed onto the opportunity,” Keenan says. “It was really exciting to get down on the casino floor and see and hear the bells and whistles.”

She rose to controller at the Trop, then was recruited to Casino Aztar in Indiana, opening the first riverboat casino in Evansville. Over the next 25 years, she became vice president of finance and administration, and took over as VP and general manager of the property when previous GM Jim Brown resigned. Keenan—who’s quick to discount the stereotype of finance as a bunch of bean-counters—says her experience on the money side more than equipped her to run the whole show.

“As the finance person, you’re the hub of the wheel. You work with all the departments, building budgets, doing forecasts, overseeing the cage—it’s been really lucky for me in this role, not only working with everyone but learning from them, to make all of us successful.”

In 2007, she moved to the Seminole Hard Rock. There she oversees a team of 300 to manage accounting and financial analysis, cage operations, credit, compliance, IT, and warehouse and retail operations for the fourth largest casino resort in the U.S. She’s not the only woman in the executive ranks, but is determined to see more. “Back when I started in 1983, you didn’t see many women in higher-level positions,” Keenan says.

“Luckily for me, I had a number of mentors who made me believe I could break through those glass ceilings.” To level the path for other women, in 2015 she and other female executives at the tribal organization launched Women of Seminole Gaming “to support the development of women through education and mentorship.”

As a leader, Keenan makes it a point to be visible and engaged with her staff. “The first thing I do each day is walk the floor and see the people on the graveyard shift; the last thing I do before going home is walk the floor so I can see the swing-shift people. I have an opendoor policy, an open-email policy, an open-cellphone policy—anything they need to get hold of me.”

As gaming evolves, she has followed the shift away from gaming to non-gaming attractions, and emerging technologies that will help to bring in younger players. “The millennials are so different from the generations before them—more social, more interactive. That will have a huge impact on how we do business.” At Seminole Hard Rock Tampa, she adds, “We don’t compete with other casinos—we compete with other entertainment.”

Asked if there is a motto she lives by, Keenan says she shares the following with her team: “Work hard, with honesty and integrity in everything you do.” As she’s proven, luck is sure to follow.

—Marjorie Preston

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Global Gaming Business SEPTEMBER 2017

Senior Vice President of Gaming Systems, Scientific Games

F

ind what you love doing, and own your career; it’s yours, after all.

That’s valuable professional advice from Cath Burns, who joined Scientific Games in April 2017 as senior vice president of gaming systems. In her first 90 days on board, Burns had already met with more than 40 customers from the United States, Canada, South America, South Africa, New Zealand and Asia.

“For me, finding opportunities that excited me or presented a significant challenge has been where my career journey has taken me,” says Burns. “I’ve always wanted opportunities that involved more responsibility, more accountability, the ability to develop and lead great teams, and most of all, the opportunity to partner with customers and help solve their problems.”

Prior to joining Scientific Games, Burns served as partner and consultant for Partis Solutions with a focus on iGaming, following a nearly three-year term as Group CEO for TCSJohnHuxley.

At Scientific Games, Burns—a 2008 Great Women of Gaming Proven Leader award recipient with more than 21 years of gaming experience—has global responsibilities for leadership of the company’s gaming systems division, with annual revenues of $241 million in 2016.

Her role includes leadership of product management, compliance, development, customer support and service for more than 790 customer sites worldwide. Burns says it’s crucial to look at issues from the viewpoint of the customer. As she meets with clients face-to-face, she asks them the same four questions that she considers key: What are we doing well?

What are we doing not so well?

What do we need to do more of?

What do we need to stop doing?

“It’s really important for me to know what that customer is thinking, and that we’re aligned to their business needs,” says Burns. “Equally important is to understand what my systems team is thinking and what they need so I can support them. We have the exact same conversation, because for any business, it’s about understanding where you

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are, what the concerns are, how to drive forward, and what problems need to be solved.”

Burns has experience in all kinds of businesses, from small retail stores to multinational corporations. Midway in her career, she opened a shoe store called Sandals, Sandals, Sandals, where she implemented a cost-saving inventory management system that increased sales by 20 percent.

“The shoe store was a change in direction; I thought it was important to learn how to run a small business, which is very different than a corporate profession because all accountability stops with you,” she says. “It’s also a very entrepreneurial experience, which is a good skill to bring to any business, large or small. I enjoyed running a small business as much as I liked coming into a corporation and driving change.”

Later, Burns spent six years (2006-2012) at Bally Technologies, and completed her tenure there as vice president and managing director of Asia-Pacific.

During her years with Bally, Burns achieved 70 percent market share in the Macau systems business, and established a network of sales and support offices, as well as the first game-development studio in the region. The Macau and Asia market was just ramping up, with 16 openings taking place in less than five years. And it was Burns and her team that won major games and systems deals with key customers.

While Burns is focused on the here and now at Scientific Games, she also has an eye on the future.

She sees an imminent emphasis on Software as a Service (SaaS) and mobile-based products, increasing the successful portfolio of loyalty products, and taking the valuable player data collected by Scientific Games’ player-tracking systems and using it to facilitate a better customer and player experience through powerful business intelligence, marketing and personalized promotions technologies.

“We’re at a juncture in our business where we have a strong systems portfolio and solutions, with rich ancillary products to augment our player tracking and slot- and casino-management systems,” says Burns. “Now we need to find a way forward for our customers and ensure that our business and products are ready for their business changes.

“We’re looking at what the future is, understanding the pressures our customers have and what products they might need to help them navigate through the world as the gaming industry continues to grow and evolve. It’s an exciting challenge.”

—Dayna Fields

“Some have tried to bully their way through me.

But I’ve never considered being a woman a disadvantage.”

Blazing a Trail Valerie Spicer Founding Partner, Trilogy Group and Former Executive Director, Arizona Indian Gaming Association

V

alerie Spicer grew up in the Southwestern U.S. That region of the country has played as much a hand in her lengthy career in tribal gaming as her gender.

Spicer brings more than 30 years of experience to the Trilogy Group, the tribal business consultancy she founded with gaming industry veteran Sheila Morago.

“We consult with tribes on promotion and economic diversification efforts, as well as with companies interested in conducting business with tribes,” says Spicer, the sixth of seven children in a family raised in Albuquerque.

Most recently, Spicer served as executive director of the Arizona Indian Gaming Association, managing an organization that represents 18 tribal governments and their gaming facilities.

Before taking the lead at AIGA, Spicer served as CEO of the Gaming Strategies Group, where she promoted business development with tribal enterprises and governments. Prior to that, she spent five years as vice president and general manager of Borrego Springs Bank in San Diego, and also promoted the tribal enterprise structure for the Viejas Band of Kumeyaay Indians.

She acknowledges that being a woman in an industry dominated by men has had its hiccups.

“Some have tried to bully their way through me. But I’ve never considered being a woman a disadvantage,” Spicer says.

Women in the gaming industry would do well to bond with each other, she says.

“It’s essential to mentor and be supportive of one another, rather than tear down or back-stab,” Spicer adds. “There’s far more than can be accomplished with positive reinforcement that reflects the best in women and their instinctive intuition and capabilities.”

Spicer credits her father as a mentor in her approach.

“He faced incredible adversity from the time he was very young and throughout his life, and yet he worked very hard and was a successful man.”

She also cites Frank Riolo, a former president of the Borrego Springs Bank. “He taught me to dig deep inside of myself and find the answers, take on challenges and be the resource to solve them. Also to be fair and honest, even if it costs you—and it very well may.”

A wine connoisseur, Spicer cherishes time with family, from siblings to her son.

“We love to sing and cook and have large campouts in the mountains together. I can’t think of anything more important to me. We lost our parents, and I believe we are even closer than we’ve ever been. But most important to me is my son. He’s my best friend.”

As gaming expands and diversifies, Spicer hopes to help tribes invest in more than gambling to sustain their future, just as they protect their industry politically and through regulatory stability.

For those interested in joining that future, Spicer urges them to take time to respect and understand the journey that has brought this industry to where it is today.

“Be a good ambassador to it,” she says, “and protect its longevity.”

—William Sokolic

SEPTEMBER 2017 www.ggbmagazine.com

33

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WOMEN IN GAMING 2017

The Top of Her Game Rachel Barber Senior Vice President and Chief Technology Officer, Gaming, International Game Technology

L

ooking back, Rachel Barber’s career path seems almost predestined.

The girl who once loved playing video games like Pong, Space Invaders and Q-bert is now a leader in gaming technology as senior vice president and chief technology officer for IGT. “When I was a teenager, I was into Atari and all those first home-based console games that came out in ’80s,” Barber says. “I always wanted to work at a computer gaming company.”

She didn’t have to look far for a role model: her mother was a software engineer at defense contractor Raytheon.

Geography also played a part in Barber’s career. She grew up in Rhode Island, home of GTECH, the world’s largest provider of lottery services. In 1991, she started there as a software programmer, and gradually moved up the ranks, to technology director, senior technology director, and vice president of software engineering. As the company grew—acquiring slots and systems makers Atonic and Spielo—she shifted to the gaming side.

In 2015, when GTECH bought IGT—a $6.4 billion merger that created the world’s largest gaming company—Barber assumed her current role, leading a global team of more than 1,500 to develop and deploy IGT’s land-based casino and VLT products. She also oversees the company’s internal IT functions.

Like many ambitious, high-achieving women, she met with some bias when she joined the then-boys’ club of computer science and technology.

For example, she shares a story about her first “real engineering job” which was an internship during her years as a computer science student at the University of Rhode Island. “I was quickly aware that my male student colleagues were doing all the cool things: programming, electrical design and engineering work, while I was asked to file, make PowerPoints and edit documents. I had to get up the nerve to tell people that I wanted to do something more. In a few months’ time I was writing programs like everybody else.”

She describes game development and design as “an art and a science,” with no set formula and no guarantee of success. “It’s easy to say a great gaming product has to keep the player engaged and coming back again— we know what we’re aiming for, but it’s not always easy.”

IGT usually has hundreds of products in the pipeline, and R&D can be arduous: prototypes are developed, showcased for operators, tested in focus groups, then refined and redesigned on the way to market. Everything starts with the company motto: “Customer First.”

“We focus on our customers, players and operators, what they want and need, and combine the latest and greatest in innovative technology to give it to them,” says Barber.

She describes her team as “a family,” and her leadership style as “straightforward and simple.” An engineer herself, she understands the pressure her team members face and the incredible complexities of their job.

“I trust my team, and I feel it’s important that they trust me. I’m very transparent, open, honest and approachable.”

She’s excited about the recent emphasis on STEM education, “which reminds girls as well as boys that they can do it too. I’m lucky I joined GTECH. Right away, I noticed—in contrast to that internship—that there were a lot of women. My boss at the time was a woman. There were a lot of women programmers like me. I have over 25 years here, and I stayed for many reasons.

But for sure one of them is that it didn’t matter that I was a woman, as long as I could do the job.”

Looking to the future, what kinds of games will bring in the next generation of players?

“Nobody can claim to know exactly what it will look like. I think it’s a matter of figuring out what makes the experience for the player more convenient, offering what they want, when and where they want it and making it also more social and competitive.”

It’s a time of great change, demanding great innovation, she says. “It’s a great time to be in the gaming industry.”

—Marjorie Preston

“I had to get up the nerve to tell people that I wanted to do something more. In a few months’ time I was writing programs like everybody else.”

36

Global Gaming Business SEPTEMBER 2017

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WOMEN IN GAMING 2017

Market Leader Christie Eickelman Vice President of Global Marketing, Gaming Laboratories International

C

hristie Eickelman markets integrity.

As vice president of global marketing for Gaming Laboratories International, her job is to assure gaming regulators, suppliers and operators that their success depends on the integrity of her company’s offerings. She also sells GLI’s team: the mathematicians, engineers and quality assurance specialists who test and certify the equipment that helps power the industry.

Eickelman began her career in 1991, as a marketing rep for Sodak Gaming. In 1994, she joined startup Wolf Gaming LLC as vice president of marketing and public relations, then in 1999 found a home at GLI as marketing manager, responsible for shaping the company’s

38

brand in North America.

“I was fortunate that someone saw a skill set within me that could fit into the gaming industry, and I was given a chance to be successful,” Eickelman relates. “Working my way up at GLI, I was named director of marketing and development, and from there was promoted to senior director of global marketing. In 2012, I was given the title I now hold. My responsibilities include building the corporate brand and directing marketing functions.”

As a woman in the gaming industry, Eickelman learned early on to set goals and work to achieve them, no matter the circumstances or speed bumps.

“As long as I’m doing my job to the best of my ability and learning from others as I go, I’ll be successful,” she says. “It’s the same for any woman looking to move up in a company.”

Growing up in small-town Newell, South Dakota, Eickelman learned firsthand the value of helping others. “Newell is a close-knit community, and that’s what we did—help each other,” she says. She continues to do so as an industry mentor and board member of the American Heart Association’s Circle of Red. Eickelman enjoyed the guidance of mentors such as Barbara Newton, former regional director of retailer Motherhood Maternity.

“She taught me you shouldn’t judge people based on their exterior, because you don’t know their story. You should embrace them and get to know them. You’d be surprised how much you learn about others when you take this approach.”

She gives credit for her success to a supportive family including husband Jim, stepson Greyson, “and Gumbo, an extremely active dog.”

The gaming industry is at a turning point with the emergence of skill-based games, sports betting, eSports and more. “It’s going to be interesting to see how the next generation helps gaming continue to be sustainable,” Eickelman says.

To those about to climb the ladder, she recommends setting boundaries and implementing professional goals they can commit to.

“The effort will pay off in the future. Also, make sure to get involved in your community and give back to others,” she says. “It allows you to form a lasting, positive impact on society at large.”

—William Sokolic

Global Gaming Business SEPTEMBER 2017

Pioneer Spirit Diana L. Bennett Co-founder and CEO, Paragon Gaming

I

f you think the daughter of Las Vegas gaming legend William Bennett got a free pass in this business, you’ve got another think coming.

For Diana Bennett, the famous name was a hindrance at first; reluctant to start out working for her dad, she was passed over for multiple positions and promotions “because no one wanted a William Bennett spy.”

Her first industry job was answering phones at the Flamingo (she only got it, she says, because the preferred candidate “was a hooker who couldn’t get a sheriff’s card”). Even at that level, Bennett kept her eyes and ears peeled, absorbing everything she could about the business. It paid off. By 20, she had risen to become the Flamingo’s catering and convention manager. But her career really took off when she joined Mike Ensign at the Gold Strike and Pioneer casinos in Downtown Las Vegas, in the role of marketing director.

“Mike was wonderful—he let me work any department I wanted,” says Bennett. And work she did, six days a week with extra shifts Tuesday and Saturday—in the cage, at the front desk, even designing casino interiors. “But I fell in love with slots,” says Bennett, who eventually became slot director when the new Gold Strike opened in Jean.

Today, the list of her accomplishments may rival that of her celebrated father, a Phoenix businessman who went belly-up in the furniture game,

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started over as a casino host, eventually built Circus Circus into a billiondollar enterprise, and introduced the then-unheard-of concept of familyfriendly attractions in Las Vegas.

The apple hasn’t fallen far from the tree. In 1991, Diana Bennett and her partner Scott Menke structured the acquisition of the Sahara by the Bennett family’s Gordon Gaming for $193 million. They redeveloped it, and 15 years later sold it for more than $1 billion. They also supervised the expansions of iconic Vegas properties including the Luxor and Excalibur. In 2000, she and Menke co-founded Paragon Gaming, which brought the first tribal casinos to Alberta and British Columbia. In 2007, Bennett was named one of the Top 10 Great Women of Gaming in the U.S. In 2014, inducted into the Nevada Business Hall of Fame, she was hailed as “one of the most effective and respected executives in the gaming industry today.”

And the rest really is history. Last year, when Paragon acquired a majority interest in the Hard Rock Hotel at Lake Tahoe, a Nevada Gaming Control Board member told the partners, “We know the magic you can do; we’ve seen it before.”

Bennett appreciates the compliment, even as she shrugs it off.

“There’s no magic,” she says. “Scott and I have a no-nonsense approach to gaming. It’s not brain surgery, it’s about numbers. It’s about going into a property and finding out where they’re not getting the best revenue— whether it’s going out the back door or because there aren’t the proper controls.” Luckily, she says, “Numbers jump off the page at me. I can spot the one number in the column that’s wrong.”

Bennett’s newest project is the $490 million Parq Vancouver, due to open this month. Bloomberg has already called it “the most fun business hotel in North America,” offering a vigorous anti-Vegas model for successful gaming properties of the future. The elegant Parq includes a 517-room hotel, eight restaurants and bars, 600 slots, 75 gaming tables, and a highlimit gaming floor with 11 VIP salons.

Bloomberg called it “part of the wave of big, new, business travelerfriendly hotels such as the Ned in London, with plenty of top-quality dining options” and canny details like meeting “pods” and a sixth-floor, 30,000-square-foot open-air park.

“We take tremendous pride of ownership in this project,” says Bennett.

“It really is just an amazing property.”

Looking back, she acknowledges the sexism she experienced in the early years.

“When I became a slot director, there were no other women slot directors, and at G2E, the men would hold parties at strip clubs.” (Bennett always got her invitation two days late.)

While her male colleagues closed deals over golf or cocktails, “I had to get the kids to soccer and gymnastics and do laundry. It wasn’t easy, and there weren’t a lot of other women to talk to.”

That’s changed now, she says, thanks to “true pioneers” like Claudine Williams, the first woman in Las Vegas to buy her own casino, and Jeannie Hood, who took over as president and CEO of the Four Queens in 1977, when her husband died.

Does Bennett—mother of three, grandmother of five—consider herself a pioneer?

She pauses just a moment, then concedes, “I guess I was. I just didn’t know it at the time.”

—Marjorie Preston

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Reinvesting in Your Players Can you protect player profitability while boosting response rates?

By Sarah Procopio

D

o you know what your player reinvestment percentage is? Yes, you think you know, but do you really know? Odds are, the answer is no. Having visited multiple properties and conducted close examinations only to discover that what they thought they were investing in their players didn’t match what they were really investing, the crazy thing is that many of these properties are in prime locations in premium gaming markets.

Concerning, right?

Seth Schorr has an impressive, intense and highly thoughtful approach to reinvestment analysis; he has worked in multiple, vastly different gaming jurisdictions and currently owns Fifth Street Gaming, which operates the Downtown Grand in Las Vegas. He speaks to the complexities of reinvestment evaluation and the challenges casinos have in hitting the sweet spot of reinvesting enough to yield a high response rate—but not so much that there are diminishing returns.

“If you don’t formally include operational expenses in your reinvestment analysis, that’s OK,” says Schorr. “Just make sure to be consistent

40

Global Gaming Business SEPTEMBER 2017

and take a step back for a holistic view of your property. If you are charging for drinks and parking, that may provide an opportunity to beef up the investment in players via more free play, or… maybe not. Just make sure to be thoughtful and intentional with the investments you make, and see the benefits and drawbacks of visiting your property from the player’s perspective.”

Audit Arrangements So it’s time to do a player reinvestment percentage audit immediately. Act like it is an emergency, because it is highly likely that there are major revenue and profit opportunities to be had.

If you are a president or an executive of a casino, and you switch properties, put this at the top of your “to do” list when you make your move. It will allow you to hit the ground running and show success quickly.

An MBA professor once said, “As leaders, it is our job to find the points of friction and eliminate them. The points of friction (internally or externally) represent revenue opportunities.”

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Because the revenue mix at some properties is higher in retail than in gaming, it is now more important than ever to consider how much retail revenue you could be losing by comping rooms.

Once this analysis has been made, you can structure your player offer models accordingly.

These words of wisdom ring true, and the player reinvestment audit is the best pathway to identifying these friction points. Here are some common mistakes made when choosing a player reinvestment strategy—and how to avoid them.

Forgetting different markets are different: Sounds simple, right? Many

leaders frequently make the mistake of arriving in a new gaming market and drafting plans to change the property player reinvestment percentage without conducting a deep competitive analysis. Make sure this is never you.

Stopping short of measuring opportunity costs: Because the revenue mix at some properties is higher in retail than in gaming, it is now more important than ever to consider how much retail revenue you could be losing by comping rooms. Once this analysis has been made, you can structure your player offer models accordingly.

Lacking the patience to look at the detail: There are lots of revenue and profit opportunities that can be apprehended at a granular level if you take the time to look closely. There is an equal amount of opportunity in evaluating offer types and the true costs associated with each. These opportunities are often missed, because most teams won’t slow down and take the time to spot them.

Depriving the property of consistency: What exactly should you include in your player reinvestment formula? Promotional expenses? Operational expenses? The approach—and the philosophy behind a given approach—varies drastically by casino, but one thing is certain: it is crucial to pick an approach and stick to it so you can make solid business decisions that pay off.

There are many common mistakes when it comes to deciding on a player reinvestment strategy, including failing to understand the importance of average daily win (ADW), average daily theo (ADT), and the trip versions of each in the player reinvestment calculation—but that would take up another article. In general, don’t get so caught up in improving your property’s profit margin that you lose sight of generating revenue volume. And do your best to avoid tightening the player reinvestment percentage so much that you lose sight of the totality of what your players are experiencing when they arrive on property, as compared to your competitors.

But what if you don’t know with certainty what your player reinvestment percentage is now? You can’t formulate a quality strategy and measure the success of implementing it if you don’t know what your starting point is, so it is time to get down to business. You are now ready to conduct a percentage audit! If that doesn’t sound exciting yet, it will soon—once you see the revenue and profit it drives.

Five Steps to Success Here are some tips and tricks to execute a highly productive player reinvestment percentage audit that yields maximum returns.

Pick the right person to head up the audit. You are about to not only ask most of the departments on property very hard questions, but also to request documentation to verify the answers. This process is going to make the team feel very uncomfortable. They’re going to feel like they’re being audited because, well, they are.

Brace yourself for pushback, and make sure you pick the right person to lead this project. You want a bulldog that doesn’t take no for an answer and always finds a way around roadblocks. You also want someone who doesn’t feel married to the current way things are done. It can be a new executive or

SEPTEMBER 2017 www.ggbmagazine.com

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an outside consultant. If you don’t have someone with this personality type on your team, get one—it is an essential element of success. In the meantime, if necessary, you must conduct the audit yourself. It is that important.

Are you assuming all offers are being accurately tracked and that they’re hitting the right budget? Don’t.

Are you assuming the right controls are being executed to minimize advantage player participation and theft?

Don’t. Are you assuming each offer is set at the right cost, or that player development is taking into consideration offer and event investment before they comp their VIPs? Don’t.

Choose the right approach. Look, we all make mistakes, and most of us don’t know everything about the areas of business we lead the charge on. That’s OK. It’s important to remind the team of this, both to ease their fears and to let them know that increasing the accuracy of your player reinvestment percentage is just part of the process of running the operation.

If you spot an opportunity in a specific department, make it clear you are not there to judge or put someone on a watch list. You are there to work as a team to get things figured out. Make sure the team knows this. Allow the head of each department to present the findings to you so they feel ownership of them. A task force should be assembled and weekly meetings conducted until project completion.

Don’t take anything for granted. Are you assuming all offers are being accurately tracked and that they’re hitting the right budget? Don’t.

Are you assuming the right controls are being executed to minimize advantage player participation and theft? Don’t. Are you assuming each offer is set at the right cost, or that player development is taking into consideration offer and event investment before they comp their VIPs? Don’t.

In this audit, nothing is sacred. Leave no stone unturned. If the team tells you these areas are above board, say, “Show me.” And have them walk you through all the processes: marketing, accounting, the cage, the front desk and the casino floor, as well as the systems being used.

Watch an F&B team member enter an offer into the system, then look up how that offer hits the system at the back end, and follow it all the way through to accounting and see the way it hits the general ledger.

It is a lot of legwork, but it is work that nobody else on property is taking the time to do, which is why you will be shocked by all the opportunities you uncover. Don’t let department heads provide you with a surface report on what is happening in their departments—their teams need to show you.

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Global Gaming Business SEPTEMBER 2017

Follow the money. From point and table games being wrong in the operational system to recency, frequency and monetary (RFM) calculations being off in your analytics and database marketing system, opportunities are there.

Think about the worst scenario for your property’s finances and start from there. What if dealers aren’t rating players accurately and low-level players are getting high-level rewards, or vice versa? What if there aren’t proper controls on comps like you thought there were? What if the cage is supposed to be issuing match play, which is how you run the numbers, but they are issuing promotional chips that have double cost? Let these questions lead the way on the audit.

Know the common places to find money. Here is a recap, plus a few more you can put in your tool box: • Table game formulas • Player costs hitting the budget wrong • Point formulas • Comp formulas • RFM model formulas • Pro forma and post forma inaccuracies • Comp controls • Player development comp overlap with other expenses • Offer tracking—lack of tracking or inaccuracies • Not considering opportunity cost when executing marketing programs • Problem gambling suppression requests • No mail coding (outgoing hosts can suppress or delete)

Sarah Procopio is founder and president for Thrive Now, a nationally recognized analytics and datadriven marketing firm. Procopio is known for turning failing companies and marketing programs around quickly by leveraging analytics. A former consumer analytics marketing executive at Caesars Entertainment and Marriott International, she also brings experience from MGM Resorts International and the Silverton.

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HOTEL

To OTA or Not OTA Casinos get smarter with hotel room distribution

S

pending equal parts of my career in the casino and hotel spaces leaves me often comparing the two worlds.

Casinos have always led the way in loyalty marketing, and hotels are starting to learn from their best practices. More hotels are realizing they can differentiate their loyalty programs from boring points-based systems by adopting segmentation and reinvestment strategies from the gaming industry. However, casinos have been slower to innovate in disciplines like revenue management and distribution.

At Duetto, we advocate the two worlds become one, and for casinos in particular, that means embracing a revenue strategy where the hotel team is working much closer with the operations, marketing and player development departments. More gaming properties today should be considered resorts, where hotel rooms and amenities are an equal or greater driver of demand than gaming.

This means casinos have to push innovation around hotel room distribution. Fortunately, with revenue management, loyalty and distribution colliding, the time is right for aligning the teams and devising a game-changing strategy.

Should your casino hotel be listed on Expedia, Priceline and other third-party distribution channels, also known as online travel agents (OTA)?

Like many other aspects of the casino industry, the answer depends on where you’re located.

Outside of major destination markets like Las Vegas, Atlantic City and Biloxi, casino demand on online travel agencies is almost nonexistent.

Las Vegas is a market unto itself, and given its dependency on tourism, it makes sense for the destination-based resorts to be listed on most travel channels, including OTAs. There are two reasons why many casinos outside of Vegas avoid third-party distribution altogether: • Casinos typically have been able to drive their own direct demand effectively through promotions, discounts and rewarding big players.

• While OTAs are masters at advertising,

44

By Marco Benvenuti

converting and driving leisure demand, they are typically reluctant to share guest information with their suppliers, especially in advance. And nothing’s more important to a casino than knowing who’s in the house and who’s expected to arrive tonight.

I would argue that, until recently, these issues would have been adequate reasons to avoid OTAs. But historically, casinos have been a step behind in digital marketing, and currently many are managing OTAs incorrectly, often looking at them like a traditional travel agent or wholesaler.

If you look at the OTAs for what they are, develop and execute a strategy to use them correctly, and understand the costs involved, there’s definitely a time and place to work with an OTA. Some important things to remember: • Use OTAs on the right terms. The so-called “bllboard effect” can be used to your advantage if you’re competing with other hotels in nearby markets. But don’t hand over the keys to your house; use them to run specific promotions for a limited time and target the right demand.

• Getting the right people in your casino will always be more lucrative than getting the most people in your casino. You’ll have to start by treating guests who booked on an OTA just like any other cash-paying guest, but once you get them in the door is where you refer back to that casino loyalty expertise.

Casinos have made much bigger strides than their hotel industry counterparts in getting to know their customers and valuing each guest’s worth. While hotels are currently trying to better recognize frequent guests, casinos continue to improve guest spend tracking and build their overnight demand through loyalty, aiming to get the most valuable guests through the door.

And that can extend to your room distribution strategy. Consider a partnership like the one between Red Lion Hotels and Expedia, where travelers who visit Expedia.com and Hotels.com will see Red Lion’s Hello Rewards members-only rates as well as a non-member rate. Travelers who book the member rate are automatically enrolled in Hello Rewards. Similarly, casinos could pub-

Global Gaming Business SEPTEMBER 2017

lish their loyalty rates on OTAs—and make it easy to sign up for the program via the OTA. With a revenue strategy that aligns casino and hotel teams, management can be more informed and more strategic about distribution channel mix and yielding each channel appropriately. If a booking date is approaching and your hotel is forecasted to run low occupancy, it’s OK to accept OTA demand, because you most likely would not have sold that room otherwise.

However, as the saying goes: If guests book your property once through an OTA, they’d better book direct on their return visit. Once you’ve accepted that third-party booking, it’s up to you to capture guest email addresses and give departing guests a bounce-back offer. Fortunately, casinos have plenty of tools and tricks to convert OTA bookers into loyal guests. Casinos can use upgrades and perks—like free play, dining or spa discounts—to entice membership.

A loyalty database is a major weapon for casinos. Consider that travelers who join nongaming hotel loyalty programs rarely return to the same exact hotel. A Hilton Honors member, for example, may stay at an Embassy Suites the first time and a DoubleTree the next time. But at most casinos, if that guest returns, it will be right back to the same property, making data storage easy and paving the way for a more personalized experience.

When it comes to OTAs, casinos have for the most part been hesitant. But knowing when to list your inventory with an OTA and how to incorporate third-party demand into your loyalty strategy will help you innovate and drive profitability in the long run.

As co-founder and chief marketing and strategy officer, Marco Benvenuti guides the product and brand vision for Duetto, a revenue strategy technology company launched in 2012. The company has more than 100 employees and now partners with approximately 2,000 hotels and casinos in more than 60 countries. Prior to Duetto, Benvenuti was executive director at Wynn and Encore resorts in Las Vegas.

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CUTTING EDGE Tracking Loyalty Product: SG Barcode Slot Bezel Manufacturer: Zebra Technologies

tilizing technology already deployed in the lottery industry, Scientific Games has again partnered with Zebra Technologies to create a unique solution that will enhance how casino operators connect to their players, as well as transform the landscape of player loyalty and rewards.

Integrating Zebra’s expertise and barcode scan engine technology into SG’s player tracking bezel, Scientific Games has developed a new player tracking bezel opening up a world of cardless loyalty convenience for today’s mobile age. In addition to mobile loyalty, the new player tracking reader allows for the scanning of player or promotional information utilizing a QR or bar code, which can be displayed on a mobile device or other item, offering a multitude of uses.

With the player-facing barcode scan engine embedded into SG’s offered player tracking reader, players can take advantage of a self-service scanning transaction, similar to other retail establishments. Through this new reader, players can sign into their player accounts without the need of a physical mag strip card—just pull up the barcode on their phone and scan.

This makes it easier for players to accrue loyalty points and utilize reward

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programs easily throughout the integrated resort at gaming and hospitality services and products.

Coupled with the Scientific Games casino management system, the barcode reader allows casinos to enhance their marketing and promotional efforts directly to players by enabling real-time communications such as targeted incentives and coupons being distributed to players on their mobile devices as they play, along with real-time redemption and reporting of promotion participation.

The familiar physical design of the new bezel reader allows for a quick bezel replacement by a simple change-out of the existing slot bezel to the new bezel with barcode reader, reducing installation time and saving the casino money.

As with all new technology applications, this marks just the beginning of a new way for operators to effectively deliver and measure in real-time initiatives across resort amenities, retail shops and casino floor touch points.

For more information, visit zebra.com.

Predictive Maintenance Product: Slot Sense Manufacturer: Gaming Support

aming Support has announced the development of Slot Sense, a tool for “predictive maintenance” in the casino industry.

Slot Sense gives the operator full control of slot maintenance. Sensors built into the slot machines monitor and report the following conditions of these machines:

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• orientation • g-forces • thermal imaging • magnetism • sound • temperature • humidity • air pressure

These data points are analyzed and compared with data profiles.

Exceptions will be shown on the user’s dashboard, and that will determine the maintenance schedule for the week. When predictive maintenance is working effectively, maintenance is only performed on machines when it is required—before a failure occurs. Predictive maintenance will reduce or eliminate the unnecessary disturbances that require corrective maintenance when failures occur.

Working with Slot Sense offers several cost savings for the casinos: It minimizes the downtime of the slot machine allowing for more player time, reduces hours needed for maintenance, and lowers cost of parts and supplies.

For more information, visit gamingsupport.com.

SEPTEMBER 2017 www.ggbmagazine.com

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Working for a Living

By Dave Palermo

Tribal gaming haves and have-nots

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xecutives of Seven Circle Resorts of Denver, Colorado gathered with the Standing Rock Sioux Tribe in 1993 to sign a deal to manage the Indian nation’s Prairie Knights casino, then under development near Fort Yates, North Dakota. The visitors came loaded with cash.

“Their idea was to give us money” in exchange for 35 percent of the casino revenues, recalls a tribal leader who requested anonymity. “They were all about the money. They were going to bus workers in from Bismarck and Mandan.

“We told them, ‘You don’t understand. We want the jobs.’”

A tribal-owned company took over management of the casino in 2002.

Seventy percent of about 500 workers at Prairie Knights and a second casino, Grand River, are enrolled members of the tribe.

Unfortunately, gaming has not been the panacea for some 9,000 citizens of Standing Rock’s remote, 2.3 million-acre reservation. Unemployment remains at 71 percent, according to tribal statistics. And even among those with jobs, 62 percent live below federal poverty guidelines.

Meanwhile, 500 miles away, 480 citizens of the Shakopee Mdewakanton Sioux Community near Minneapolis-St. Paul are each getting $84,000 a month from the tribe’s Mystic Lake, Little Six and Canterbury Park casinos. Few have jobs or, for that matter, need to work.

“We have 99.2 percent unemployment,” the late tribal President Stanley Crooks quipped in a 2012 interview with the New York Times. “It’s entirely voluntary.”

Cash Cow or Job Generator?

The emergence 30 years ago of American Indian casinos continues to gen-

erate unprecedented social and economic progress on many of the 326 reservations and rancherias held in trust by the U.S. Department of the Interior.

Some 244 tribes own 484 gambling facilities in 28 states, an industry that last year generated $31.2 billion, according to the National Indian Gaming Commission (NIGC), which audits tribal government casinos.

Most economically deprived Indian communities benefit at least to some degree from gambling, which is generating jobs and helping fund government services, housing, health care and education.

But the widely held notion the nation’s 2.9 million Native Americans are flush with casino cash is false. As is the case with the Standing Rock and Shakopee reservations, there are definitely haves and have-nots in Indian Country.

“The stereotypes out there—that Indians are living in squalor on the reservations or that they’re all rich from casinos—neither one can explain the whole story,” says Anton Treuer, author and professor of Ojibwe language at Bemidji State University. “It’s all very complicated.

“Poverty remains pervasive,” he says, particularly on large, remote reservations in the Midwest, Great Plains, Southwest and Mountain States. “The same is true of unemployment. In some places, though, the impact of casinos has been stunning,” Treuer says of several lucrative gambling resorts on primarily urban Indian reservations.

“It’s not like rising tides have lifted all boats.”

The NIGC no longer profiles the size and income of tribal operations, which for 2015 showed a significant revenue disparity between a few dozen lucrative urban casinos—many owned by small-enrollment tribes—and marginal casinos on large, rural and remote reservations.

Thirty-three Indian casinos generated nearly half the revenue won by

“It’s kind of a double-edged sword. Financial gains from gaming have allowed tribes greater access to policymakers. It’s enabled tribes to have a greater impact on issues such as health care. Along with that is the perception gaming is what all tribes do— that tribes are all getting rich from casinos and all lands are tied to gaming.”

—Denise Desiderio, Policy Director, National Congress of American Indians 46

Global Gaming Business SEPTEMBER 2017

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tribes nationwide in 2015, according to the NIGC. Eighty-four facilities generated 72.9 percent of the win, or $22.7 billion, leaving nearly 400 operations to divvy up the remaining $7.3 billion.

About a fourth of the nationwide win went to mostly small-enrollment tribes in California, according to NIGC and other sources.

California and Oklahoma generated 40 percent of the nationwide revenues in 2015, according to economist Alan Meister, author of the Indian Gaming Industry Report. Toss in Florida, Arizona and Washington, and Meister can show five of 28 states generating 63 percent of the casino win.

—Attorney Gabe “While on average there have been Galanda, of the Round large improvements, the effect of Indian Valley Indian Tribes of gaming varies tremendously across California, about the tribes,” according to a 2015 paper by the perception tribes are Harvard Project on American Indian wealthy from casinos Economic Development.

“Some tribes have had spectacular successes; others have found gaming to be a small part of their economic portfolio and of limited importance to their tribal government revenues and communities.”

“The true picture, I think, is one of diversity,” says an indigenous Capitol Hill lobbyist who requested anonymity.

Unfortunately, in politics, perception is reality. Gambling and the myth of the rich Indian has hijacked federal Indian policy, muddling legislative efforts dealing with re-acquiring ancestral lands, federal recognition of Indian groups and other indigenous issues.

Indian Health Services, Housing and Urban Development projects and

“Without data, you cannot disprove the myth.”

other entitlement programs growing out of treaty agreements are being scrutinized by Republicans on the Hill grasping federal budget austerity agendas.

Meanwhile, tribal efforts to acquire land for housing, schools, health clinics and government infrastructure is being framed on Capitol Hill as a gambling issue by elected officials and bureaucrats who suspect every land-trust application will result in a new casino.

“It’s kind of a double-edged sword,” says Denise Desiderio, policy director for the National Congress of American Indians. “Financial gains from gaming have allowed tribes greater access to policymakers. It’s enabled tribes to have a greater impact on issues such as health care.

“Along with that is the perception gaming is what all tribes do—that tribes are all getting rich from casinos and all lands are tied to gaming,” she says, a notion that has interfered with efforts to re-acquire ancestral lands lost through federal tribal termination and allotment policies.

“It’s a bit of a trade-off,” Desiderio says. “We need to keep trying to balance all that out.”

Getting at the Truth To quantify the true impact of gambling in Indian Country, one need follow the money and the jobs. But the process is made difficult by the lack of transparency among most tribal governments. Tribes often do not disclose financial information, employment, enrollment and other data needed to empirically gauge the significance of gambling on indigenous communities.

U.S. Census and labor statistics are complicated and confusing, particularly when census areas and tribal populations overlap reservation borders.

Unemployment is combined with those not available for employment.

According to the 2010 Census, 5.2 million people identified themselves as American Indian and Alaska Native, often in combination with other races. Of the total, 2.9 million people identified as American Indian or Alaska Native alone. Roughly a third of indigenous Americans live on or near reservations.

Regional unemployment figures for persons self-identified as Native Americans in 2013 compiled by the Economic Policy Institute ranged from 8 percent to 17 percent, roughly twice the figure for non-Indians.

SEPTEMBER 2017 www.ggbmagazine.com

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But Interior Department labor statistics for 2013 show about half of 1.97 million Native Americans living on or near reservations are working full- or part-time. In several states—Alaska, Arizona, California, Maine, Minnesota, Montana, New Mexico, North and South Dakota and Utah— employment remains far below 50 percent.

Poverty levels on or near Indian lands range from 43-47 percent in South Dakota to 30-37 percent in Arizona, Minnesota, Montana and Nebraska, according to the Interior report.

The National Indian Gaming Association, the industry’s lobby and trade association, does not provide independently verifiable statistics on casino employment. Economist Meister puts the figure at 333,717.

Arizona, Oklahoma, Minnesota and Washington each employ 15,000 to 18,000 casino industry workers, according to state tribal gambling associations. Roughly 30 percent of the jobs are held by indigenous employees.

California is the country’s most lucrative Indian gambling industry with 62 casinos generating about $8 billion annually. The industry employs 40,700 workers, more than 90 percent of whom are non-Indians.

California statewide enrollment is not believed to exceed 34,000, meaning a fourth of the gambling revenues nationwide benefit a small percentage of the native population.

Oklahoma has130 facilities but most are small operations such as travel plazas. The state generated $4.2 billion in 2015, according to Meister, placing it second to California.

NIGC does not break down figures by states, to keep revenue figures secret.

Many tribal officials warn the lack of full disclosure can create problems for Indian Country, particularly in the face of a critical Congress, White House, Interior Department and federal courts.

“Without data, you cannot disprove the myth,” attorney Gabe Galanda, a member of the Round Valley Indian Tribes of California, says of the perception tribes are wealthy from casinos.

“That’s an important narrative. Time will tell what this administration and Congress are up to when it comes to Indian policy. With the move toward austerity, we’re going to see a hard look at Indian Country when it comes to those that have and those that don’t.

“There’s going to be some mode of means testing deployed by this administration. They might say, ‘Oh, the oil and gas tribes are OK. The gaming tribes are OK. They don’t need the money.’

“The data becomes pretty important in that conversation.”

Casino Impacts Differ Between Tribes IGRA was not a jobs program for Indians. Nor was it intended to erase poverty in Indian Country.

IGRA was a congressional response to the 1987 U.S. Supreme Court decision in California v. Cabazon Band of Mission Indians, in which justices recognized the sovereign right of tribes to operate gambling on Indian trust lands without interference from state and local governments.

IGRA provided a regulatory framework for tribal casinos, giving state and local governments a voice in the process of establishing Las Vegas-style casinos on existing and newly acquired Indian lands.

Three decades later, there are casinos on all but about 80 of the 326 reservations and rancherias in the lower 28 states. About 30 federally recognized tribes do not have trust lands. There are bingo halls in two of 220 Alaska Native villages.

Gambling revenues under IGRA are used to subsidize government

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Global Gaming Business SEPTEMBER 2017

“Some tribes see casino gaming as a jobs-creation strategy for their members.”

—Kate Spilde, Associate Professor, San Diego State University; Chairwoman, Sycuan Institute on Tribal Gaming

services such as housing, health clinics, schools and reservation infrastructure. Hundreds of millions of dollars are doled out in state revenue sharing, charities and non-Indian communities.

Finally, 130 tribes have revenue allocation plans (RAPs) approved by the Department of the Interior under which tribal members receive casino income. Payments vary depending on enrollment and revenues. Tribes do not disclose how much is paid out.

RAPs to several tribes—Shakopee, the Pechanga and San Manuel Indian bands in California and others—have generated much perhaps misleading press coverage.

“What’s going on at Pechanga and Shakopee is the exception rather than the rule,” Treuer says.

Urban Perspective on Gaming “Some tribes see casino gaming as a jobs-creation strategy for their members,” says Kate Spilde, associate professor at San Diego State University and chair of the Sycuan Institute on Tribal Gaming.

Employment is not an issue for small tribes in California and elsewhere with fewer than 50 to a few hundred citizens, operating lucrative urban casinos and cashing five-figure monthly per-capita checks.

Some become private entrepreneurs. Others work for their tribal governments.

“Tribes are governments first and foremost,” Spilde says. “People do things that support the government that don’t count as a job.”

Jobs are crucial for large Indian communities where per-capita payments are not an issue. Casinos do little to remedy poverty, joblessness and despair. But, little is better than nothing.

A marginal casino that generates jobs, wages and benefits—and perhaps serves as a community center—is kept open whereas a commercial operation would be shut down.

“It’s not about finances, but job creation,” Desiderio says. “Some facilities exist to break even and create jobs for the community. In other places it’s much easier for the facility to become the financial driver for the tribal government.

Dismal employment figures improved with gambling on the Leech Lake, White Earth and Red Lake nations in northern Minnesota. Tribes are major employers in 16 nearby economically deprived counties.

“Each of those tribes—even the poorest—now has a governmental budget that eclipses most universities and impact lots of people, native and non-native,” Treuer says. “There are bizarre, contradictory dynamics. Casinos cut the unemployment rate by as much as 60 percent in some places, to maybe 20 percent.

“But 20 percent unemployment is still unacceptably high,” Treuer says.

“Casinos haven’t eradicated that.”

Strength in Numbers

More than 150 member companies from 23 countries Nearly $18 billion in direct revenue • 55,145 employees 13 publicly traded companies • ONE POWERFUL VOICE Address worldwide industry regulatory and legislative issues • Discounts on major trade show booth space Promote responsible gaming initiatives • Updates from influential global industry leaders Advertising discounts in leading industry publications • Educational partnerships benefiting students and members Visibility in AGEM’s print advertisements • Exposure for publicly traded companies in the monthly AGEM Index Join AGEM today and work together with the world’s leading gaming suppliers.

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

AGEM.org

©2017 Association of Gaming Equipment Manufacturers (AGEM). Membership list current as of August 2017.

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Coming Home Again Gaming brings a young Navajo back to her roots

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efore she graduated in 2002 with a hospitality management degree from Northern Arizona University in Flagstaff, Michele Landavazo wrote an essay about her dream of working for a casino on her native Navajo Nation.

But it wasn’t until 2008 that the Navajo Nation Gaming Enterprise (NNGE) opened Fire Rock Casino near Gallup, New Mexico, the first of what are now four casinos on the sprawling, three-state reservation that is home to some 200,000 indigenous Americans.

“I wanted to be close to my family,” says the young wife and mother who returned to Navajo as an experienced dealer and supervisor. She previously worked with Caesars Entertainment in Lake Tahoe, Nevada, and tribal casinos in Phoenix, Arizona.

Getting Landavazo back home is exactly what Navajo had in mind when it opened Fire Rock, two other casinos in Church Rock and Fruitland, New Mexico, and the flagship Twin Arrows resort on Interstate 40 between Flagstaff and Winslow, Arizona.

“The No. 1 priority was to create jobs and economic opportunity for Navajo,” NNGE Chairman Quincy Natay says. “The big benefit has been enabling Navajos to come back and work at home.”

Unemployment in the various Navajo Nation chapters ranges from 40 percent to 60 percent.

“It’s good for our Navajo people to get a paycheck, go shopping and buy cars,” Navajo President Russell Begaye told a recent tribal Michele Landavazo forged a career in gaming before her conference in Scottsdale, Arizona. “It gives Navajo Nation approved them a tremendous sense of pride that they gaming on its reservation, can raise their families.” and how she’s back home The enterprise has created about 1,250 working for the Navajo jobs, 85 percent of which have gone to tribal Nation Gaming Enterprise citizens. NNGE pays out about $122.5 million a year in salaries and benefits.

As is the case with most large and rural Indian nations, gambling alone is not intended to completely remedy unemployment and a weak economy. But it helps. The same is true for the Pine Ridge and Rosebud Lakota nations and other impoverished reservations.

“It hasn’t been the complete solution. But it has made a major impact,” Natay says. “We are one of the top five employers on Navajo.”

As is the case with many government casinos, NNGE’s goal isn’t entirely to make a profit.

Twin Arrows is struggling to pay down $220 million it borrowed from the nation to build the resort. Natay says the enterprise so far has generated $94 million in interest, $12.5 million in principal and $8 million toward a gambling distribution fund.

NNGE hopes to work closely with other tribal enterprises, using gambling as the economic engine to develop motels, restaurants and retail businesses, generating a ripple of non-gambling jobs. Glittering Mountain is being developed as a 70-acre shopping center and residential development adjacent to Twin Arrows.

Federal law allows tribal governments to engage in hiring preference for

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“The No. 1 priority was to create jobs and economic opportunity for Navajo. The big benefit has been enabling Navajos to come back and work at home.”

—Quincy Natay, Chairman, Navajo Nation Gaming Enterprise indigenous citizens and other Native Americans. Studies show in most states about 30 percent of tribal casino employees are American Indian.

The percentage of native workers is much higher among larger tribes in more rural northern Minnesota. About 90 percent of the 40,700 workers in California tribal casinos are non-Indian, primarily because most indigenous communities have small enrollments.

Minnesota tribal casinos have 15,287 workers, making the industry the state’s 14th largest employer.

Employment was the goal in the early 1990s, when Grand Casinos Inc. Managing Partner Lyle Berman worked with the Mille Lacs Band of Ojibwe in developing hotel resorts in Hinckley and Mille Lacs, Minnesota.

“Berman had somebody high on the organization chart whose sole responsibility was to get tribal people trained to run the operation,” says a tribal official who requested anonymity. “It worked.

“If there was a tribal member who wanted a job and could pass the regulatory background investigation, they worked for us. Most of the managers also were native.”

If there is a barrier to tribal employment, it’s the fact many Native Americans are victims of generational poverty and lack skills and a work ethic.

“Having access to a job doesn’t necessarily cure those things that are keeping people from their own self-determination,” Karen Diver, former chairwoman of the Fond du Lac Band of Lake Superior Chippewa, told MinnPost.com.

“When you have multiple generations in one family who have suffered hardship and all of the resulting social ills that come from poverty and oppression, it is really going to take more than one generation to make them better.”

Extensive training was necessary for many newly hired Navajos, a job that fell to experienced people such as Landavazo, who taught table games.

“There were a lot of people in hotel and food service jobs,” she says. “But most of the Navajo applicants and management were brand new to the casino industry. They were highly motivated.”

“I saw pride on their faces that I’ve never seen before,” a Navajo executive says of recent hires at the casino, many of whom are expected to quickly move up the ranks.

“If you put those people in those roles, and allow them to grow, they’re going to grow.”

Landavazo learned firsthand the importance of giving Navajos the resources to provide for their families.

“I was able to help provide for my siblings and other families in need,” she says. “It helped stabilize the community.”

—Dave Palermo

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TABLE GAMES

Missteps and Disasters Designing new table games can be a humbling experience

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“

nd bad mistakes… I’ve made a few,” as Freddie Mercury of Queen once wrote and often sang—occasionally in front of 70,000 people—is the musical musing of the admittedly non-omniscient. It’s the meh, who-cares, whatever-dude resignation that things don’t always go according to plan. Or more aptly in the profession of games and gambling, according to Hoyle.

Consider the creation of new content. When it comes to mistakes, misfires and miscalculations, no one, nowhere is more qualified to opine on this particular subject than the person who wrote the words you are reading right now.

Most of my games fail. Often miserably so.

Others languish interminably, like a car out of gas on a flat road in Purgatory. Still others languish for a while before plummeting to their demise, like that same car, still out of gas, but this time on a frozen pond with the spring thaw on its way.

Only a few, a precious few, ascend to longterm prominence.

That’s just the way it is. The game business is the failure business, no different than the music business, the movie business or the publishing business, where a few hits cover the fannies of a lot of flops. Call that other guy Ishmael, but call me—oh, about 50 percent of the time—this: The Master of Disaster. The Baron of Blunder.

The Emperor of the Empty Table. The Grand Poobah of FUBAR. Bad mistakes? Check.

Made a few? Check and mate.

And now, deep from the archives, for your amusement and perhaps bemusement, here are my most massive miscues ever in designing table games. Well, so far, anyway:

6-5-4 Poker (2003) “A coward dies a thousand times before his death,” Shakespeare famously wrote, “but the valiant taste of death but once.” Great. Thanks, Bill. So by that standard, 6-5-4 is among the most valiant table games in history.

Because it was such a Roman—speaking of Julius Caesar—vomitorium, it only had the chance to die once.

By Roger Snow

In this game, players got five cards to make their best four-card poker hand. The dealer, however, started with six cards, but would occasionally throw one or two of them away, leaving him with six, five or four cards (hence the name).

6-5-4 debuted at Thunder Valley Casino—at its grand opening—outside Sacramento, and as well as that property was received by customers, that’s how poorly this game was. What a disaster.

Close your eyes and imagine the Exxon Valdez Tboning the Titanic while the Hindenburg kamikazied them both from the sky above.

Valiant, schmaliant. Something that awful doesn’t deserve a second chance, and 6-5-4 was 86’d forever.

Big Raise Hold ‘em (2004) “Who’s Big Ray?” the dealer asked as training began, perhaps out of sarcasm or perhaps out of legitimate homophonic confusion.

“What?”

“Isn’t this Big Ray’s Hold ‘em?” he continued. “Who’s Ray?” Truth be told, a start like that makes it hard to imagine a favorable finish. Which didn’t come, by the way, but certainly not for a lack of trying.

We spent two years hustling and hoping, persuading and praying that this would take a meaty slice of the Texas Hold ‘em pie that Chris Moneymaker had slid into the oven with his miraculous run at the World Series of Poker a year earlier.

But, unlike Big Chris, Big Raise truly was dead money. Twenty-five casinos in various markets around the United States gave it a chance— six chairs and plenty of chips, as it were—but despite several mathematical overhauls, the game never caught on.

“Who’s Ray?” “Ray’s dead, baby. Ray’s dead.”

On the Draw (2009) This was supposed to be the paytable equivalent of Ultimate Texas Hold ‘em. Players started with four cards and would eventually get three more, and the object was ending up with two pair or better. As with Ultimate Texas Hold ‘em, players could check or bet on each street; the earlier they

committed to their hand, the more they could risk, and therefore the more they could win if their draw panned out. The game also featured something called a “pot bet,” where players competed against others to get the highest hand that round.

In the end, which you didn’t have to wait very long for, players thought On the Draw was as unfair as it was un-fun. And they hated—oh, how they hated—the idea of competing against other players in that pot bet. Had they wanted that, they would have been playing real poker. On the Draw went into a dozen casinos in California and Washington before going extinct.

Rabbit Hunter (2011) In this poker game against the dealer, players had the option to buy an extra card. Meaning, at worst, it was perfectly fair and square (5-on-5). At best, however, it was a 6-on-5 power play. And the act of buying was optional, so players did so of their own free will. The game even had the coolest logo ever, a tall, lanky, white rabbit seen through the scope of a hunter’s rifle. (And if you looked closely enough, it appeared the rabbit was flipping him the bird.)

As for the rest of Rabbit Hunter, it was borrowed from other, successful games like Ultimate Texas Hold ‘em and Crazy 4 Poker. So you had what seemed like a cool concept, adding an extra card to help your hand. You had a name that comes straight out of the poker room. You had amusing graphics and a pedigreed betting structure.

What could go wrong?

Everything. Players hated the idea of buying the card and, as it turns out, cruelty (even if implied) to animals (even if animated) did not go over well with the table-game set. Rabbit Hunter went into 25 or 30 casinos and was quickly removed from all of them.

Silly wabbit.

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.

SEPTEMBER 2017 www.ggbmagazine.com

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Evolution Gaming produces live casino games for online and land-based casino companies

Best The Of Both Worlds Tables games are bringing the excitement of a casino online

By Steve Ruddock

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he difference between the average slot player and the typical table games patron is striking.

First, there are the demographics. Table game players skew younger and male, while the average slot player is more likely to be a woman, and over the age of 50.

Beyond that, there’s a different vibe when you cross over from the slot floor to the table games section in a land-based casino. Slots are mainly a solitary pursuit, whereas table games provide a more social experience.

On the slot floor, everyone is spaced out and off in their own little world. They’re oblivious to their surroundings, so much so that they may as well be wearing headphones. What noise there is—emanating from the machine cabinets—is consistent and somewhat hypnotic.

In the table game section things can be a bit more lively. Everyone is bunched together and interacting with one another, and the sounds (the collective cheers and groans) are organic—as random as the cards being flipped and the dice being rolled.

The sociability deficit between table games and slots is less pronounced online. Online customers are isolated from other players, and whether it’s slots, blackjack or roulette, they’re more or less just “smashing buttons.”

Some companies are taking steps to make online games more social, but even without the social factor, these games are just as appealing online as 52

Global Gaming Business SEPTEMBER 2017

they are in a land-based casino.

Players flock to online table games in droves. Slots may be the king, but online table games account for roughly 25 percent of online casino revenue in New Jersey, according to several of the state’s operators, and that percentage could be poised to grow.

The Online Advantage The reason online table games draw crowds, despite being less social, is because online is the last refuge of the value gambler.

At a time when casinos are increasing the house advantage at most of their tables, with 6/5 blackjack and triple-zero roulette wheels, online table games provide significantly better returns.

Forget triple-zero. “There is almost no double-zero roulette online, and typically side-bet pay tables are the most player-friendly versions offered,” according to Todd Haushalter, the chief product officer of Evolution Gaming.

“Even the penny slots online run at around a 5 percent house edge, versus some 10 percent-15 percent in land-based.”

And the reason online casinos have to offer player-friendly returns is threefold: There is less overhead; The clientele is more sophisticated; and,

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“

You have a sophisticated audience playing online, in that they are all gamblers who took the time to set up an account and deposit money to play. They are not in your property for a convention and probably killing a little time at the roulette table before dinner.

—Todd Haushalter, Chief Product Officer, Evolution Gaming

They have access to competitors’ sites.

The first point is the most obvious.

Aside from live-dealer games (which will be discussed a little later), online casino games don’t have the same overhead or space restrictions that a landbased casino has to deal with. At an online casino, opening a new blackjack table, or even a score of tables, doesn’t require increasing dealers and floor staff, and an online casino never runs out of space for tables.

The final two points go hand-in-hand.

If a customer isn’t having a good time at an online casino, they don’t have to walk to the car garage and drive to a nearby casino—“nearby” being a very relative term.

Online casino customers can shift their play to a competitor within seconds.

As Haushalter aptly puts it, “Players are just a click away from a different game or casino.”

And where there is more competition, you’re likely to see player-friendly market conditions. “Much like you would see in a competitive locals market, the odds online need to be more player-friendly,” Haushalter explains.

The online customer is also gambling for vastly different reasons.

“You have a sophisticated audience playing online, in that they are all gamblers who took the time to set up an account and deposit money to play,” Haushalter says. “They are not in your property for a convention and probably killing a little time at the roulette table before dinner.”

Online players actively sought out a place to wager, and can seamlessly transition to another online casino if they have a negative experience.

Live-Dealer Tables If value accounts for the current level of online table game players, live-dealer tables are the reason it could continue to grow.

Live-dealer games mix the best parts of the online and land-based gaming experience, and Haushalter’s aptly named company, Evolution Gaming, is at the forefront of the live-dealer movement.

Evolution Gaming is the largest provider of live online table games in the world. The company doesn’t boast a brick-and-mortar casino, but as Haushalter puts it, “If we were considered a casino we would be the biggest casino outside of Asia by GGR.” What Evolution has is over 300 tables and more than 3,000 employees streaming livedealer games across the globe.

Evolution is also at the forefront of one of online gaming’s other growth markets—mobile

The mission control room at Evolution Gaming

”

gaming, and mobile ties in nicely with live-dealer tables.

A full 50 percent of Evolution’s revenue is generated through mobile devices.

Live-Dealer Advantages Live-dealer tables helped solve one of the lingering problems potential customers have expressed in regards to online gaming—trust.

Live-dealer games—actual dealers in a secured location, dealing real cards and spinning real roulette wheels—have bridged the trust issue that has kept so many people from playing online.

“In the early days of streaming live table games to online players, it may have been more about trust and knowing that the cards are real, or seeing the ball drop with your own eyes as opposed to an RNG game,” says Haushalter.

As Haushalter notes, in more mature markets this is less of a concern, but in the U.S., where online gaming is only legal in three states, and where the wounds of shady offshore operators are still fresh, trust is still an issue.

“When we survey brick-and-mortar patrons, the main reason a majority of them have not signed up for an online casino is a lack of trust. Live-dealer is the best possible answer to their concerns,” said Thomas Winter, vice president of online gaming at Golden Nugget Atlantic City, in a 2016 interview with Online Poker Report.

Golden Nugget was the first licensed U.S. online casino to offer livedealer games, and within months of their launch, Golden Nugget overtook Borgata as the top-revenue-generating online casino in the New Jersey market.

The popularity of live-dealer games goes well beyond the trust gap. Livedealer games mix some of the social elements of the land-based casino experi-

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GoldenNuggetCasino.com is the first U.S. online casino to utilize live dealers

ence with the convenience of online gaming.

Winter says this combination has attracted customers who would not play traditional online casino games to Golden Nugget’s live-dealer tables.

According to Winter, these customers perceive online games as too cold and too far from the social experience they are accustomed to in a brickand-mortar casino.

“It is just more fun for most players,” Haushalter says. “You can enjoy HD-quality video, with multiple camera shots that give beautiful close-up views of the action, the dealers are super friendly (and their bonuses are based on this), and it is of course social, since you can chat with the dealers.”

Live-dealer games are “dominating the online table game space,” according to Haushalter, and he sees no sign that the trend will slow down.

Not Every Game Translates Live-dealer games may be killing it, but not every traditional casino game succeeds online. Some of the more complicated games are simply too reliant on the face-to-face player-dealer interaction.

“Craps is a game that is very difficult to translate online,” Haushalter says. “The dealers provide such an incredible assist to the players and guide them through the game, ensuring they take odds, get additional come bets, ask if they want their bets “working” on come-out rolls, etc.”

Even if the complexity of craps could be dealt with—be it live-dealer games or real-time tutorials—a good craps game is often the most boisterous area of the casino, and that energy simply can’t be replicated online.

“There is also a certain magic to throwing the dice and controlling the outcome of the game, and there is of course the energy from other players, and this all makes it very hard to re-create the craps experience online,” Haushalter says. “We will eventually tackle this when the U.S. market heats up, but it will not be easy.”

However, with a little tweak, an otherwise stale land-based casino game can work well online.

“Online table games are still in the phase where we try to capture all the great things about the land-based games and then look for enhancements we can add that players will enjoy,” says Haushalter. “One example of taking a game that is rather bland in casinos but is performing amazingly well online is our new Dream Catcher game.”

Dream Catcher is a version of the big six wheel, but Evolution was able to tweak it by adding 2X and 7X payout multipliers. This is important because the big six wheel offers some of the worst returns in a casino. When 54

Global Gaming Business SEPTEMBER 2017

these multipliers are hit, they lock in all bets and multiply potential winnings, thereby improving the return to the player. This is possible online because of the lower overhead and ability to offer better return to players in the online space.

With the tweaks, “this game is getting more players than Three Card Poker, Caribbean Stud and Ultimate Texas Hold ‘em combined,” according to Haushalter.

Trust The Process There’s another reason there aren’t many online-specific table games.

According to Haushalter, bringing a new game to the online market is even more costly and time-consuming than it is in the land-based casino industry.

“In the modern era, if we want to launch a new game, it costs many hundreds of thousands of dollars to develop it for desktop, phone, tablet, and then optimize for all devices and orientations,” Haushalter begins. “We could do a soft launch, but you really do set it up for failure if you try this.

This process takes four to nine months and a team of graphic designers, developers and many more to bring a game to life.”

However, Haushalter believes online players are more receptive, so if a company believes in its game, it could be worth its while.

Reason being, unlike a land-based casino, online casinos have all the space in the world, and won’t hide the game in a back corner.

“You can launch the new game on your front page for the first week or so, which is akin to putting the game in the most A-plus location in your casino,” Haushalter explains. “This guarantees that 100 percent of your players will see the game.

“You can also do email campaigns and the players are just a click away from the game, versus having to drive to the casino.”

Another benefit is that online casinos can also let players get a feel for the game without risking much money, and without being intimidated.

“The good news is that unlike land-based, you can offer the game for just 50 cents per hand if you like, and you guide the player through the process step-by-step with the user interface,” says Haushalter. “There is no pressure from other players, and with the anonymity, players don’t have to worry about being embarrassed.

“So while it is much harder and more expensive to create a new game online, this is somewhat overcome by the increased chances of success.

“With all that said, the game still has to be good, because there is always blackjack and roulette.”

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chief executive, in a press statement. “The sport now stands on the verge of enormous change, which we believe has the potential to generate significant growth.”

MGM Online Casino Goes Live In New Jersey

T

here’s another new online casino site in New Jersey, and this one bears the name of MGM Resorts International.

PlayMGM.com launched in conjunction with MGM’s Borgata casino in Atlantic City. New Jersey online casinos must be partnered with an Atlantic City casino. The casino also offers two Borgata-branded online sites, as well as partnerships with PartyPoker and Pala Casino’s online sites.

The playMGM brand is also active in Nevada through a sports betting app.

The New Jersey site is powered by GVC, which provides the software for the company’s Borgata-branded sites. The new site is available through PC browsers as well as apps for iOS and Android.

The site has launched with casino games and slots, but also includes an online poker room, which will share players with Borgatapoker.com and PartyPoker.

The site also launched with an impressive 100 percent deposit match up to $2,000 on first deposits. The site carries a rewards program linked to the Borgata, but is not connected to MGM’s Mlife rewards program for its land-based casinos, according to a Online Poker Report.

Borgata’s online sites were the early leaders in New Jersey’s iGaming industry, but recently Atlantic City’s Golden Nugget casino and its partnered sites have taken the lead.

Also in New Jersey, state Senator Raymond Lesniak said he plans to introduce a bill to allow gamblers in foreign countries, as well as Nevada and Delaware, to place internet bets in New Jersey.

Lesniak told the Associated Press that while the bill has not been written yet, he will propose that people in jurisdictions where online gambling is already legal be able to make online bets in New Jersey. The bill would also allow international operators to base their operations in New Jersey, and remove a requirement that computer servers be located within Atlantic City.

Lesniak said the move would enable other jurisdictions to pool their players with New Jersey

56

and expand both markets.

“I’ve changed my mission from making New Jersey the Silicon Valley of internet gaming to the mecca of internet gaming,” Lesniak said. “Online gaming has helped Atlantic City to revive its casino sector with a success that we can expand in ways that will generate more revenue, create jobs and fuel technological innovation in gaming.”

Madison Square Garden Invests in eSports Team

T

he Madison Square Garden Company has invested in the well-known eSports organization Counter Logic Gaming.

While terms of the deal were not released, MSG has reportedly acquired a controlling stake in the team.

Counter Logic Gaming competes in a number of eSports games including League of Legends and Counter-Strike: Global Offensive. The team competed in the League of Legends World Championships in 2011, 2012, 2015 and 2016.

The team was founded in 2010 by George Georgallidis, who will continue to oversee the dayto-day operations, MSG said in a press statement.

The team will also be able to benefit from the company’s “unmatched expertise in sports business, including marketing partnerships, media rights, event operations, ticketing, merchandise and fan engagement,” the statement said.

Though MSG has hosted eSports events at Madison Square Garden—MSG hosted the 2015 North American League of Legends Championship Series Summer Finals—the acquisition is its most significant investment in eSports by the company.

“Since then, as we have been actively exploring opportunities to enhance MSG’s portfolio of live experiences, we have been keenly interested in eSports as a natural extension of our core business,” said David O’Connor, MSG’s president and

Global Gaming Business SEPTEMBER 2017

Christie, New Jersey Urge Trump Administration Not to Ban Online Gambling

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ew Jersey Governor Chris Christie has signed a bill designed to convince his political ally President Donald Trump not to move to ban online gambling.

The bill, passed by the state New Jersey Governor legislature, also Chris Christie urges Congress not to enact such a ban.

Though Christie is friends with the president, Trump has been noncommittal on the issue, telling the Associated Press last year, “I have a lot of friends on both sides of this issue.”

Online gambling has been going strong in New Jersey since 2013, and now brings in about $20 million a month to the state’s Atlantic City casinos. That helped the city’s seven remaining casinos post a revenue increase last year, the first in a decade.

Las Vegas Sands owner Sheldon Adelson, however, has led a long, so far fruitless, lobbying effort to have online gambling banned in the country, which could include not grandfathering the three states that now allow online gambling. Nevada and Delaware also allow online gambling.

Attorney General Jeff Sessions has also said he would be willing to re-examine a Department of Justice ruling that cleared the way for online gambling.

The New Jersey bill says a federal prohibition would negatively impact the state, “dismantling the investments that the state and Atlantic City casinos have already made to implement and regulate internet gaming.”

It says a ban would take away “economic and employment opportunities already realized” by the state and foreclose the future potential of the industry to “generate tens of millions of dollars in tax revenue, create high-tech software jobs, and foster valuable business ventures for Atlantic City casinos,” according to an AP report.

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FRANKLY SPEAKING

by Frank Legato

Machines and Milestones video games. I would have put those old Aristocrat multi-line games in there, though. Before those hit Atlantic City in the mid 1990s, slot floors all looked the same—a sea of threereel, single-line machines, the players of which could have been mistaken for factory workers. (I think they even punched a time clock.)

The Aristocrat games were the first multi-line Australian games to appear in the U.S., and players were almost mesmerized because it was something... different. WMS introduced the concept to Nevada with Reel ‘Em In, as well as injecting a lot of humor into the deal, but Aristocrat deserves mention in the changing-gamblingforever category.

Other than that, the glaring omissions include Wheel of Fortune and Double Diamond.

How can you say Wheel of Fortune did not change gambling forever, but Sushi Bar and Jack and the Beanstalk VR did? I think the latter game was introduced, like, yesterday, so “changing gambling forever” is more like a prophecy than an opinion.

Not that I’m criticizing. Union brother, remember?

The writer did a good overall job early in his list, and while I disagree that those bar-top pokers were the first slot machines, that’s pretty much semantics.

They did start the whole slot-gambling thing, as proven by this actual quote from 1890s San Francisco, which I made up: Husband: “Honey, I hit four sevens! That’s $2 worth of nickels!”

Wife: “But dear, you’ve gone through at least $5 since we got here.”

Husband: “Who cares? Look at that pile of nickels! I’m rich!”

At that point, a business model was established that survives to this day.

VIC TOR RINAL DO

T

he other day, I was reading the Casino.org blog, which bills itself as the “World’s Online Gaming Authority Since 1995.” I noticed an article by David Sheldon, one of the site’s regular contributors, that wasn’t about online gaming at all, but slot machines. The piece was called “10 Slots That Changed Gambling Forever.”

Since I have been known to have some knowledge on this subject—I wrote a book on it, in fact, which was read by tens of people— I decided to fact-check Mr. Sheldon.

Now, I would never criticize a fellow gaming writer. We’re union brothers, after all (Amalgamated Brotherhood of Gaming Writers, AFL/CIO/LSMFT). Sheldon’s list is as valid as any other, but I do have a few snarky comments. (Snarky is part of my union contract.)

The Stittman and Pitt Gambling Machine, invented in 1891, is listed as the first slot machine ever invented. This was a bar-top mechanical poker machine with a 50-card deck (hey, house edge, you know?) that usually paid out in cigars or drinks.

The ones that paid out in drinks were great for barkeepers, because the luckier someone got, the more likely he would pass out before he got paid, and wake up not remembering if he got paid, or what he was supposed to get paid for.

Anyway, Sheldon writes that these were the first slot machines, but there were other gambling machines in those bars, which were mainly in San Francisco. They were ornate pieces of furniture with a big wheel and a handle you would crank—sort of a primal Wheel of Fortune.

So you had Wheel of Fortune and Jacks or Better poker with two cards missing. How could you lose?

But I don’t consider the poker machine the first slot machine ever invented. I would argue that it is the next item on Sheldon’s list—the Liberty Bell, developed by San Francisco inventor Charles Fey in the 1890s, and introduced publicly in 1899. This was a three-reel mechanical slot machine with bells and fruit symbols, which established the model for a slot machine that would be used for the next century.

It was also the first to be called a “slot machine,” short for “nickel-inthe-slot machine.”

Fey was part of San Francisco’s German immigrant community, and he called it “Liberty Bell” as a nod to his adopted country. (Plus, it was better than his wife’s suggestion, the “Bet Five Nickels to Win Two Nickels Machine.”) He built the thing in his garage, and probably had no idea of the mammoth impact his invention was to have on the 20th century casino industry. (Especially since he was trying to build a toaster.)

No. 3 on Sheldon’s list (isn’t that a movie?) is Bally’s Money Honey from 1963, the first slot machine to be all lit up with dings and bells and whistles. No argument here.

The others on the list are valid enough, from WMS’ Reel ‘Em In to IGT’s Cleopatra to the arrival of games licensed from the world of

SEPTEMBER 2017 www.ggbmagazine.com

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Strengthening the System

By Dave Bontempo

I

t was once a bastion for gaming insiders. Player tracking rewarded those who outhustled competitors with the cutting-edge practice of customer identification. It took precious time, money and resources to comprise a customer portrait. Yet the effort squeezed out an edge, deepened a property’s player base and planted the seeds for tailored offers.

Knowing one’s own players was an accomplishment.

That realm has evolved into an industry prerequisite. Player tracking hits the same buzz note as customer service, value-added and loyalty rewards. Properties must thrive in this area simply to compete, let alone win, and they must be far more cognizant of competitors.

The information drill-down spans partial comps, automated room rates and minute-by-minute analysis of a player’s worth. Will it ever reach critical mass, a point in which operators will have all the information they’ll ever need?

“As long as global technology continues to grow, so too will casino systems,” says Steve Walther, senior marketing and product management director for Konami Gaming. “We can expect to see continued growth in connected integrations with non-gaming features, touchpoints and amenities. Every aspect of how guests interact with the property is a representation of their customer loyalty experience, and offers growing significance to the future of integrated resorts. Mobile technology will also continue to impact the way players interact with the property, while providing new opportunities for data and analysis.”

It’s been some journey. Player tracking went from slot-centric systems to 58

Global Gaming Business SEPTEMBER 2017

Why player tracking has gone far beyond the slot machine

player-centric, into marketing applications for increasing time on device and finally into the world of data, dynamic pricing and the impact of non-gaming spend. Gut feeling is still valuable for hosts looking to entice players, but properties prefer data-driven comps by the numbers. The spa, nightclub and golf courses are all in play. So is the pool. And the bar. Integrated resorts have widened the playing field and enhanced the value of good information.

Synchronizing Selections Las Vegas-based Konami Gaming, a leading innovator of slot machines and gaming enterprise management systems, is the casino gaming and systems division of Konami Holdings, headquartered in Japan. The company has been in the casino systems business since 2001 and its core technology supports nearly 400 venues.

Konami’s casino management system Synkros is best known in the industry for its 99.9 percent-high availability, player tracking at the game level, innovative marketing tool kit, and robust tracking of gaming and non-gaming data.

Recent innovations include a marketing tool kit and table-game enhancements. The tool kit product features configurable points, partial comps and floor-wide marketing exclusions. Table-game upgrades allow side-bet tracking, automated decisions per hour and incremental average bet calculations.

Walther considers the Global Gaming Expo an excellent springboard for new product features.

“The latest version of Synkros, which we’ll be showing at G2E 2017, carries a number of updates focused on empowering operators with greater con-

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Our latest table games and marketing “ tool kit enhancements are all about empowering casino operators with smart, flexible technology to match their business.

”

—Steve Walther, Senior Marketing and Product Management Director, Konami Gaming

trol over how they manage player tracking functions with marketing and table games, as well as how accurately they can pinpoint key data points,” Walther says.

“This year, we’re showing important enhancements to our core marketing tool kit that empower site teams with maximum flexibility to optimize, customize, manage and track player reinvestment costs,” he says.

The configurable-points aspect addresses over-comping, which can hit seven figures annually for some properties. Table-game enhancements illuminate patrons who wish to gamble more aggressively. This could provide more enriching comp levels for them.

“Synkros is introducing a number of leading advancements to its table games functionality that allow properties to get as close as possible to the most accurate theoretical win calculations,” Walther says. “Our latest updates include side bet tracking and the ability to update average bet, skill, speed, and play percentage for both main game play and side bets. We also help take the guesswork out of typical average bet calculations with a more accurate and automated incremental average bet.”

Synkros’ automated decisions per hour (DPH) also empowers operators with more robust data accuracy by running analysis independently during the rating process, Walther maintains. These details enhance day-to-day management, helping operators keep “track.”

“Our latest table games and marketing tool kit enhancements are all about empowering casino operators with smart, flexible technology to match their business,” Walther indicates. “A robust player tracking system should equip teams with new possibilities, not limit them to a singular approach.

“It should drive more accurate data and analysis, even beyond what’s expected. That’s what ultimately pushes the industry forward.”

The company’s deeds have matched those words. Last month, Konami Gaming announced the launch of Synkros at Lac Courte Oreilles Casino Lodge & Convention Center and its outpost location Grindstone Creek Casino. Both are operated by the Lac Courte Oreilles Band of Lake Superior

Chippewa in Hayward, Wisconsin, and feature 700 combined slots and table games. This marked Konami’s first Synkros installation in Wisconsin, which has 25 casino properties.

“Our key focus across all areas of the organization is guest service, and Konami’s Synkros provides that core technology piece that brings everything together and empowers our team to deliver a premier gaming experience every day,” says Lee Harden, chief executive officer at Lac Courte Oreilles Casino Lodge & Convention Center. “The benefits of Synkros’ advanced marketing capabilities, 99.9 percent uptime availability and agile infrastructure are already in motion.”

Synkros replaced an existing casino management system. LCO Casino and Grindstone Creek Casino gained access to robust multi-site management tools, advanced reporting features, player loyalty benefits and customizable marketing programs.

Take the Suite Las Vegas-based Casino Data Imaging is a specialist in gaming business intelligence. It provides the reports, dashboards and graphical visualizations a casino needs to get the most value from its gaming floor, according to Adam Winkler, its senior product manager. GlobalSuite, which provides visualization and report analysis, multi-casino and multi-game, multi-denomination information, heads the company’s effort in this area.

“The industry wants the same insight from their player analysis software as they get from Amazon, Netflix and other products in their personal life,” Winkler says. “GlobalSuite provides users with access to the data that works best for them. The software has done the hard work of linking game play to the players. Users of the software can see who plays which games, when they play and where they play. We help operators to use their game play data to quickly identify winning and losing themes. This allows them to get the most out of their gaming floor space.”

Winkler says GlobalSuite has doubled down on providing operators with SEPTEMBER 2017 www.ggbmagazine.com

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Casino Data Imaging’s GlobalSuite provides visualization and report analysis, multi-casino and multi-game, multi-denomination information

familiar tools for game play analysis. If users are comfortable with using Microsoft Office, they can perform data analysis with CDI software, he says.

Winkler believes CDI has taken complication out of the equation for busy casino operators.

“We modernized the front and back end of GlobalSuite,” Winkler says.

“By the end of the year, the back end will support a 64-bit architecture while the front end will be indistinguishable from a standard Microsoft Office product. These updates along with a long list of UI updates will make it easy for users to get the most out of the system. Most of the upcoming changes are the direct result of user requests.”

Most GlobalSuite updates are as simple as Adobe Acrobat upgrades, Winkler says. If the system recognizes a new release is available, it will download the latest product and restart with the new version. Product updates are quick and painless.

According to Winkler, GlobalSuite evolves towards integrating more game play data into a single location while simplifying the analysis process.

“Too many companies are in an arms race towards flashy features that provide little to no actionable insight,” he contends. “We build a friendly system that allows users to get the most out of the system in the shortest period of time.

“The game-changing feature of GlobalSuite is the 3-D map,” Winkler adds. “We can visualize an operator’s gaming floor and overlay slot machines or tables with performance figures, like coin in, average theoretical win, or any other key metric. The gaming devices can be color-coded for any of these metrics by location or bank, and the system stores all historical maps so machines can reorient themselves when viewed historically.”

Ardently Expanding Ardent Progressive Systems makes inroads with the Ardent Comp Validation system. It was initially launched at bar locations, but has grown into the slot-machine realm at 19 Nevada locations, including 11 on the Las Vegas Strip, according to Albert Tabola, its sales director.

The hardware unit helps properties identify wager totals and literally light up with information about what players deserve comps. The information can be spotted and attended to by cocktail servers roaming the floor.

Winkler estimates the device can save a big property like Caesars $1 million in a one-year period by not issuing comp drinks players have not earned.

Robert Guinn, the Ardent CEO, says the device serves both players and operators.

“The system improves the engagement to the patrons that are playing and also frees up bartender/servers to spend more time servicing and connecting with valued customers,” he says. “The product tracks the average wager per minute and provides visual real-time triggers to the bartenders/waitresses depending on the level of play to either allow for comps, higher comp levels, to notify when comp levels are reduced, or to 60

Global Gaming Business SEPTEMBER 2017

disallow for comping because of inadequate play.

“This will improve customer service and it has a reliable return on investment, which, unlike many other products in the market, is not subjective,” Guinn adds. “Anyone can visit a location that has our technology installed and see that it is working within five minutes. Extrapolate that over a period of a year and the savings from reduced liquor bills, increased game play and increased sales can be extraordinary.

“This product is the first to use visual feedback to quantify a customer’s play in real time without having to run back and check a monitor that may have dated information. The bartender now has a way to instantly test the reliability of his perception of a customer’s play.”

At the bar, it can help an employee “see the light.” The bartender, who may suggest a comp beverage to the player, knows the customer just put $20 into play because a blue LED alert has indicated that.

The system then takes over and as long as “the player continues to play at a predetermined average (set by the operator) he will receive complimentary beverages,” Guinn indicates. “The bartender knows this by a green LED. If the customer slows or stops his play at some point the green LED will turn off and a red one will start flashing, alerting the bartender that the customer has fallen below the predetermined average.”

The bartender can decide to keep the player engaged by offering a complimentary beverage or offer to start a new tab, resuming the bar-patron relationship and leaving gaming out of it.

The product allows operators to manage comps while allowing the bartenders to still make decisions, Guinn asserts.

Other comp methods are not as flexible, he believes. The bartenders appreciate this product because it still enables their discretion, he contends.

It also provides a valued intangible. A bartender can inform the patron that his play did not warrant a drink, but provide one anyway. The concept will inspire some level of loyalty and likely produce increased play somewhere, sometime, even if not at that moment. The idea has strong upside.

Guinn says one of the more important data points the product calculates in real time and stores is the players’ average wager per minute.

“This is a key indicator that all of our locations have utilized for determining comps, and many times even premium comps based on a tiered average wager,” he says. “Utilizing a reasonable average wager over time allows for players to take breaks and interact with their friends without being penalized. In addition, comps are determined on wagers, not win/loss or initial buy-in, which are not a valid justification for issuing comps.”

Industry-wide, the value of player knowledge intensifies. So does the need to harness it. What do patrons like, where to they spend, what do they eat and what is their game, drink or favorite activity?

From a marketing standpoint, casinos love to store that information.

From a revenue perspective, they want to track it and rack it. And to simply compete, they can’t lack it.

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NEW GAME REVIEW

by Frank Legato

Kong of Skull Island Ainsworth Game Technology

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his new installment in Ainsworth’s King Kong franchise is themed around this year’s film of the same name, released in February and starting Tom Hiddleston and Samuel L. Jackson. The theme of the famous giant ape creature on a tropical island is played out on Ainsworth’s new premium A640 cabinet.

The base game is a five-reel video slot available in configurations of 30, 40 or 50 paylines. Imagery on the reels depict icons and characters from the film. The primary game includes a mystery Random Multiplier feature.

When the man, woman or gate symbol appears in all positions on the first three reels, all wins are randomly multiplied by two, three or five.

Three or more scattered King Kong logo symbols trigger a free-spin bonus events on an expanded reel array. Reels grow on the vertical top monitor for five free games. During the free-spin feature, if the man, woman or gate symbol appears in all positions on one or more reels, it triggers a re-spin feature. All reels outside of the ones triggering the feature are re-spun once, and the re-spin feature can be retriggered.

The Random Multiplier feature also applies during the free spins—if man, woman and gate line up on all positions of the first three reels at the end of a re-spin, all wins are multiplied by two, three or five.

Manufacturer: Ainsworth Game Technology Platform: A640 Format: Five-reel, 30-line, 40-line or 50-line video slot Denomination: .01-10.00 Max Bet: 150, 200, 250 Top Award: 75,000, 100,000, 125,000 Hit Frequency: Approximately 50% Theoretical Hold: 4%-15%

River Dragons AGS

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his game makes full use of the premium marqueestyle Orion cabinet, in a game centered on red and white dragons that fill up the distinctive 42-inch flat-screen monitor in high-definition color.

Orion’s side frame lighting changes according to different events in the game, which enhances the screen display.

River Dragons is a five-reel “ways-to-win” video slot in the AGS “PowerXStream” format, in this case on a 3-4-4-4-3 reel array (three reel spots on each of the outer reels, four on the three inner reels). There are no paylines, with wins registered by adjacent symbols. In this configuration, that’s 576 possible ways to win on every spin.

During the base game, bonus symbols on the second and third reels trigger a feature called “Reel Surge.” The three inner reels grow randomly between one and four additional rows, to a maximum 3-8-8-8-3 array. Pays are evaluated after the growth is complete. If additional bonus symbols appear on a Reel Surge, they are factored into the number of free spins the player is awarded.

In the free-spin bonus, reels only grow one level on any Reel Surge.

Bonus symbols on each of the middle reels trigger eight

free spins, and the bonus round can be retriggered up to a maximum of 128 free spins.

Finally, the game features two mystery progressive jackpots—they will hit randomly on an active spin, regardless of the resulting reel combination. They are both “Must Hit By” jackpots—each meter displays the level at which the jackpot is guaranteed to hit, adding to player anticipation and potentially resulting in doses of jackpot fever as it approaches the must-hit level. The secondary progressive resets at $200 and must hit before or when it reaches $500. The top progressive resets at $4,000 and must hit by $5,000.

Manufacturer: AGS Platform: Orion Format: Five-reel, 576-ways-to-win video slot Denomination: .01 Max Bet: 880 Top Award: $5,000 Hit Frequency: Approximately 35% Theoretical Hold: 5%-14%

SEPTEMBER 2017 www.ggbmagazine.com

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EMERGING LEADERS Understanding the Industry Patrick Harris Senior Associate, TRM Public Affairs fter several years as a legislative aide, Patrick Harris began his career as a consultant lobbyist in Toronto, and quickly discovered a keen interest in the gaming industry. Despite limited knowledge or experience in the industry, he worked under the mentorship of Troy Ross at Hill + Knowlton Strategies, quickly learning about the different regulatory and political issues in the Canadian gaming industry, as well as the public affairs element that surrounded it.

the gaming industry.

“There are many moving parts at play with any gaming development,” Harris says, “and it is imperative that you cover your bases as it relates to the community, to the politics and to the different stakeholders, whether it’s labor unions or community groups. Developing strong local stakeholders to champion the economic benefits of the gaming industry is so important to success.”

Now as the senior associate for TRM Public Affairs, Harris cites “understanding the industry, espe“Developing strong cially the politics, and how it local stakeholders to all comes together” as the champion the economic most important component, benefits of the gaming since it’s the basis for how he his clients. industry is so important advises As for his accomplishto success.” ments, Harris prides himself on his efforts to expand the Harris’ love of politics inspired him to get ingaming industry in Ontario and specifically in volved with campaigns, so when Las Vegas casino Toronto. His heavy involvement with the commucompanies started attempting entry into Toronto, nity and his initiative to raise awareness on how it offered him the opportunity to lead some agcities benefit from casinos resulted in an online gressive sales pitches. This resulted in Harris’ following 50,000 people strong, making a positive work with MGM on their community relations impact on the industry. and stakeholder outreach, as they strategized to His current work still involves the land-based transition into Toronto. casino project in Toronto, as well as work in daily Through this project, Harris met two execufantasy, eSports and the horse-racing industry, as tives who would prove to be tremendous industry he studies their roles and how they interplay in the mentors for him, MGM Resorts International existing land-based casino industry.

Executive Vice President Alan Feldman, and ExHarris also continues to work with MGM Reecutive Vice President of Global Gaming Develsorts. He has helped to spearhead the MGM efopment Ed Bowers. His biggest clients, Harris forts to license the GameSense responsible worked closely with them for two years as they gambling platform from the British Columbia honed his knowledge and assisted in establishing Lottery Corporation. MGM is aiming to have the him within the industry while he continued the platform live in all of its U.S. properties by the all-important stakeholder/government groundend of 2017. work.

States Harris, “I really like what I do now beIn the early fall of 2013, Harris left the concause it allows me to focus on all different types of sulting world to join MGM’s team full time as issues. I love working with all of my clients and the lead for Canadian development, working side the breadth it’s giving me in this industry.” by side with Feldman and Bowers. This presented Considering how greatly he benefited from the opportunity for him to spend more time in the tutelage of various mentors throughout his caLas Vegas and gain a more hands-on perspective reer, Harris looks forward to becoming a mentor of the gaming industry. Through his career enhimself, and helping other young executives rise deavors, Harris has learned about the challenges up within the gaming industry. inherent in getting local governments to side with —Marie Casias, The Innovation Group

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Global Gaming Business SEPTEMBER 2017

Keeping Pace Neil Erlick Executive Vice President of Business Development, Paysafe eil Erlick has been an essential member of the senior management team at Paysafe Group Plc. for over 15 years. He was one of the original team members who helped grow the company from a startup to a multibillion-dollar, LSE 250-listed company.

Since 2013, Erlick has been responsible for the strategic development and marketing of online payment solutions for large-scale merchants, and for helping to drive revenue across all verticals for Paysafe Group by working with businesses where fast, smart and secure payment capabilities are key. He has implemented online gateway services, merchant accounts, mobile and alternative payments and risk management services through comprehensive solutions. Responsible for the company’s North American gaming enterprises, Erlick continues to seek new strategic partnerships.

Through his many years in gaming, Erlick has used his leadership and guidance to help Paysafe position itself as a leader in payment processing for the industry. In addition, Erlick was elected to the board of the Fantasy Sports Trade Association (FSTA), becoming the first-ever payments professional elected.

His success has not come easily, especially in an industry that relies so heavily on experience.

Erlick cites “hard work and determination” as key components to overcoming his lack of experience early on in his career. An important and often-overlooked aspect to success is common

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“There are no shortcuts. Work hard, stay focused and be respectful of others.

Moving up the corporate ladder takes time, but great leaders will be recognized by being themselves.” sense, and he notes that “treating others with respect and using common sense” helped pave his path to senior management. To date, this sentiment has served him well, as he is currently the executive vice president, business development, a title he has held for many years.

Not everything has been easy up to this point. Outside of the lack of experience, Erlick pinpointed the gaming industry’s fast pacing as both a challenge to overcome and an exciting aspect of it. Especially in the payment processing industry where there is never a dull moment, everything happens and moves in real time, so keeping an eye on the ball is critical.

Being in payment processing, Erlick is fully immersed in recent gaming expansions around the world, namely the growth of online gaming in the U.S., social gaming and the emergence of eSports. Under his leadership, Paysafe signed an exclusive sponsorship deal with the World Series of Poker, payment processing deals with state lotteries and regulated iGaming operators in the U.S., provincially run operators in Canada and other regulated operators around the world.

All of these have seen tremendous growth over the last few years, and as technology continues to evolve, and online, mobile and land-based services converge, the opportunities are endless.

Says Erlick, “It’s a truly exciting time to be part of the industry.”

Moving forward, Erlick hopes to drive and share in the continued growth of Paysafe with its endless opportunities in the dynamic and fastpaced gaming industry that he so enjoys.

Erlick’s parting advice for young professionals looking to move up the corporate ladder: “There are no shortcuts. Work hard, stay focused and be respectful of others. Moving up the corporate ladder takes time, but great leaders will be recognized by being themselves.”

—Christopher Irwin, The Innovation Group

SEPTEMBER 2017 www.ggbmagazine.com

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GOODS&SERVICES

FOXWOODS DEBUTS INTERBLOCK ARENA

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onnecticut’s Foxwoods Resort Casino has launched PLAY Arena @ Foxwoods, a customized version of the award-winning Interblock Pulse Arena electronic table game attraction, which places an arena setup of electronic table games in a nightclub-themed area.

The unveiling of PLAY Arena @ Foxwoods also marks the official reopening of the Great Cedar Casino, which now features a high-speed slot floor, upgraded high-limit lounge and scores of fresh table games aimed at enhancing the popular gaming area. The slot floor includes hundreds of new machines featuring over a dozen new themes.

Players are able to play up to three games at once in the Play Arena with a choice of live baccarat, blackjack and roulette. These live games are dealt by “dealertainers” located at the front of the arena who physically spin the roulette wheel and turn physical cards to determine the win.

If players are not close enough to see the generators from where they are sitting, they can watch

GameCo CEO Blaine Graboyes

the action through a live feed on their play station or on the massive video wall located at the front of the space.

“It offers guests the most fun and exciting gaming experience in a social setting where friends can play and win together,” said Foxwoods President and CEO Felix Rappaport. “The stress-free environment allows players of all levels to learn new games at a relaxed pace. It signals a landmark for the resort as Foxwoods continues to solidify its status as a national gaming leader with cutting-edge technology.”

GAMECO VGMs INVADE NORTH CAROLINA

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ew York-based GameCo, Inc. announced that it has installed its skill-based video-game gambling machines (VGMs) for the first time at Harrah’s Cherokee Casino Resort in Cherokee, North Carolina.

The company installed four of its popular Pharaoh’s Secret Temple VGMs in prominent locations on the casino floor at Harrah’s Cherokee, featuring a real “Match 3” video game experience where the player’s ability influences the amount won. Harrah’s Cherokee will be the third jurisdiction in the U.S. for GameCo deployments.

“We are excited to expand the availability of our unique, new skill-based video game gambling machines to Harrah’s Cherokee Casino Resort,” said Blaine Graboyes, co-founder and CEO of GameCo. “Harrah’s Cherokee Casino Resort has demonstrated a strong commitment to enhance the

BLACKSTONE ACQUIRES CLARION EVENTS

The ICE trade show in London

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IGT LAUNCHES ‘TABASCO’ SLOTS IN LOUISIANA

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nternational Game Technology Plc. went to the home of Tabasco-brand hot sauce, Louisiana, to launch two new slot games carrying the theme of the iconic brand.

Cypress Bayou Casino Hotel guests will be the first to experience the two new gaming machines, one inspired by Tabasco Brand Pepper Sauces and the other paying homage to the birthplace of Tabasco Sauce, Avery Island, Louisiana.

The modernized game themes are housed on IGT’s CrystalCore cabinet, which features a 42inch vertical touch-screen display, USB charging port and digital player panel.

VIZEXPLORER, CHOCTAW NATION SIGN LICENSE AGREEMENT

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ew York-based private equity manager Blackstone announced that it has acquired Clarion Events, the London-based independent event organizer that is the producer of ICE Totally Gaming, Europe’s largest gaming trade show.

Since its formation in 1947, Clarion has grown into an international business with an established market-leading platform. In addition to the ICE gaming show, Clarion boasts global leadership positions across a range of vertical markets, including retail and home, defense and security, technology and energy. The company produces more than 180 annual events and exhibitions in more than 50 countries.

Clarion is headquartered in London with over 950 employees in 13 offices worldwide. Providence, which invested in Clarion in 2015, has an

value experience for their guests including the introduction of new forms of casino gaming entertainment.”

GameCo’s VGMs combine the experience of playing video games with the excitement of gambling to create new gaming entertainment experiences for the gaming floor.

Pharaoh’s Secret Temple is a Match 3 game in which players embark on an adventure to unlock the riches of the Pharaoh’s secret temple by matching gems to collect rare treasures before their time runs out.

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option to reinvest a portion of its proceeds from the sale into Clarion.

Industry sources indicate that the added backing of Blackstone could prompt a sale of the leading worldwide gaming trade show, Global Gaming Expo, by Reed Exhibitions to Clarion, which has been considered in the past. The American Gaming Association owns 60 percent of G2E.

Global Gaming Business SEPTEMBER 2017

izExplorer, a leading provider of operational intelligence solutions to the gaming industry, announced that the Choctaw Nation of Oklahoma Division of Commerce has signed a seven-year enterprise license agreement (ELA). The ELA gives the tribe unlimited access to the VizExplorer technology platform as well as all current and future solutions, and aims to enhance operational intelligence to increase efficiency and revenues across tribal enterprises.

An existing VizExplorer customer, Choctaw Nation operates an array of businesses including multiple gaming and entertainment destinations throughout southeastern Oklahoma.

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PEOPLE GLOVER TO BECOME BORGATA ATLANTIC CITY PRESIDENT

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GM Resorts International has named Marcus Glover as president and chief operating officer of the Borgata Hotel Casino & Spa in Atlantic City.

Marcus Glover He succeeds Tom Ballance, who is becoming executive vice president of operations for MGM Resorts. Glover will take over after he obtains the necessary approval from New Jersey casino regulators.

Glover joined MGM in 2015, serving as general manager and then president and chief operating officer of Beau Rivage Resort & Casino in Biloxi, Mississippi. He previously served as senior vice president and general manager for Caesars Entertainment in northeastern Ohio, and as assistant general manager and vice president of operations for Harrah’s in St. Louis. He also held several leadership positions with Caesars in Mississippi and Louisiana.

SCHUETZ LEAVING BERMUDA GAMING COMMISSION

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ichard Schuetz recently resigned as executive director of the Bermuda Casino Gaming Commission for “personal and professional reasons.”

Schuetz will remain in his position through the end of the year to identify and assist his successor. Schuetz Richard Schuetz joined the commission as its first executive director in September 2015. Prior to that, he served for nearly four years as a commissioner with the California Gambling Control Commission in Sacramento.

Commission Chairman Alan Dunch stated, “The Bermuda Casino Gaming Commission is thankful for Richard’s two years of service, leadership and commitment to formulating a framework for Bermuda’s introduction of integrated resort casinos. We understand and support his decision to step down and are grateful for his assistance in positioning the commission and its staff for future growth.”

Schuetz has held a wide variety of casino industry positions, from blackjack and dice dealer

to executive vice president, president and chief executive officer at casino resorts in several jurisdictions. Schuetz was a senior executive at casinos in Las Vegas, Atlantic City, Reno/Tahoe, Laughlin, Minnesota, Mississippi and Louisiana. In addition, as a consultant, Schuetz helped the city of Detroit and the state of Kansas introduce casino gambling.

SHEPHERD LEAVING SILVER HERITAGE

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ilver Heritage cofounder Tim Shepherd has resigned after 14 years with the Asia-focused casino development and management company.

Shepherd was president Tim Shepherd of business development and marketing. No reason was given for his departure. He is officially stepping down on September 30, the company said in a filing with the Australian Stock Exchange.

He has agreed to continue as a consultant advising on the completion of the company’s new US$50 million Tiger Palace resort in Nepal, which is slated to open in phases beginning in September.

CASINO DEL SOL NAMES NEELY COO

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asino Del Sol, operated

by Pascua Yaqui Tribal Enterprises in Tucson, Arizona, has named Steve Neely chief operating officer for that casino as well as its sister property, the Casino of the Sun. He was serving as chief Steve Neely marketing officer before the promotion.

Neely has worked for the casino eight years. In his new job, he will manage all operations and directly oversee marketing, food and beverage, and surveillance.

Neely has two decades of experience as a senior-level executive in Las Vegas, at Pechanga Resort & Casino in Southern California, the Rivers Casino in Chicago, and the Sandia and Isleta Casinos in New Mexico.

The casino also named Louis DiCampli, chief gaming officer. He will oversee all gaming areas, including slots, poker, blackjack, bingo and security.

New to the property, he has more than 25 years of experience in the industry.

SCIENTIFIC GAMES NAMES B2B INTERACTIVE CHIEF

Leigh Nissim

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cientific Games Corporation announced the appointment of Leigh Nissim as the company’s managing director, B2B interactive, with responsibilities for overseeing the company’s remote game server and SG Universe businesses. He will be based in London, with global responsibilities.

Nissim brings extensive online gaming experience to his new role, including proven expertise and success in overseeing sales, operations, account management, marketing, new market launches, product strategy, and forging new partnerships.

Most recently, Nissim served as chief executive officer of Nektan Plc., a publicly traded B2B mobile gaming solutions and services provider leading global teams across sales, technology, finance, player acquisition and retention, where he significantly improved revenues and player volumes.

OKERBERG NAMED TO NEVADA STATE BAR’S GAMING LAW SECTION

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rica L. Okerberg, Global Gaming Practice associate in the Las Vegas office of the international, multi-practice law firm Greenberg Traurig, LLP, has been elected to the executive committee of the gaming law section of the Nevada Bar for a threeyear term.

GGB

September 2017 Index of Advertisers

AGA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43 AGEM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .49 Agilysys . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 AGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 Ainsworth . . . . . . . . . . . . . . . . . . . . . . . . . . . .13 Aristocrat . . . . . . . . . . . . . . . . . . . . . . . . . .34,35 Aruze . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21 Atrient . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31 Everi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9 FabiCash . . . . . . . . . . . . . . . . . . . . . . . . . . . . .63 Fantini Report . . . . . . . . . . . . . . . . . . . . . . . . .63 G2E . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .55 GameCo . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23 Gaming Support, USA . . . . . . . . . . . . . . . . . .39 GLI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11 Greenberg Traurig . . . . . . . . . . . . . . . . . . . . .29 IGT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 Incredible Technologies . . . . . . . . . . . . . . . . .17 Interblock . . . . . . . . . . . . . . . . . . . . . . . . . . . .15 Konami Gaming . . . . . . . . . . . . . . . .Back Cover Merkur . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .67 Rymax Marketing . . . . . . . . . . . . . . . . . . . . . .37 Scientific Games . . . . . . . . . . . . . . . . . . . . . . . .7 TCSJohnHuxley . . . . . . . . . . . . . . . . . . . . . . . .31

SEPTEMBER 2017 www.ggbmagazine.com

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CASINO COMMUNICATIONS

Q

&A

Kevin Ortzman Regional President, Atlantic City, Caesars Entertainment

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evin Ortzman has been with Caesars Entertainment for 13 years. He joined Caesars Atlantic City and Bally’s Atlantic City in 2012 as president, and in July was named regional president of all the Caesars Atlantic City casinos, including Harrah’s Resort.

One Caesars casino, Showboat, closed in 2014, but the other three properties remain strong players in the market. Ortzman spoke with GGB Publisher Roger Gros at his offices in Atlantic City in July. To hear a podcast of the interview, visit GGBMagazine.com.

GGB: There’s somewhat of a perception that Caesars has not reinvested in its properties in Atlantic City over the last few years, because of the financial shape of the parent companies. Is that true, or not?

Kevin Ortzman: It is not true, but I do recog-

The Wild Wild West project has been impressive. You’ve spread out the games, there’s a big dance floor, a concert facility, and of course there’s a great bar that extends out onto the Boardwalk. How has that been working?

The intent was to create this immersive, fully integrated experience, because one of the few attributes that we understand about millennials is that they’re very social. They have a short attention span, so to be able to have a variety of stimuli, we feel that this has been very successful. We have an open-air bar right on the Boardwalk, the first of its kind. We have bull-riding, basketball and football games. We have live entertainment, beer pong, air hockey; so, a variety of different stimuli. And of course, the only $5 live table games in Atlantic City.

At Caesars, you’ve got the Gordon Ramsay Pub & Grill in the lobby. How has that been performing?

nize that perception out there. I constantly address that. Over the last two years, we put about $200 million in the three properties. The majorVery well. We continue to look at opportunities ity of that went to Harrah’s, with the meetings to create that excitement in our point of entry. facility, which was really intended to create new It’s a bit of a challenge, because it is also where demand for Atlantic City, and which has been our front desk is. So, we don’t want to distract wildly successful. from the experience of checkAnd on the Boarding in, yet create this great Over the last two walk—also in the spirit of vibe that makes people realize years, we put about they need to go there. trying to create new de$200 million in the mand—we created a new We just finished renovatWild Wild West, with a three properties. ing nearly 300 rooms. What focus on entertainment and was formerly known as the value. We are trying to go Temple Tower is now the after what we believe is an underserved demoForum Tower, which is essentially a replica of graphic, which we often refer to as the millenniour Forum Tower in Las Vegas. So, we’re trying als, and that also has been wildly successful. to create that expectation of a particular stanWe certainly have a desire to continue to dard, when you go to any of our brands, like reinvest in the rooms, and we expect, once we this particular one that’s in Caesars. emerge from bankruptcy, that we will be able to continue doing that. Fortunately, we just comThe conference center at Harrah’s really has pleted a 500-room project over at Harrah’s Remade a difference. Tell us how that’s worked. sort, really intended to prioritize to be able to It obviously brings a different type of guest to provide the overall product to benefit the meetAtlantic City, and lets them see what the entire ings facility.

“

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Global Gaming Business SEPTEMBER 2017

”

city has to offer. It looks just like a Las Vegas conference center. Between the meeting space, and then all of the amenities that we have to offer, with the Pool at Harrah’s, the Red Door Spa and the restaurants, we have it all. The Pool is such a unique space to have a reception. We have so many things that professional and meeting groups want to have in a property.

At the Pool, we brought a gaming space downstairs to give it more energy. And then upstairs in the loft, we’ve really actually been looking at what they’ve done over at Bally’s, and seeing what we can do to model after that—just to create those stimuli that millennials want, and create new experiences all the time for those guests.

Caesars CEO Mark Frissora and MGM’s Jim Murren recently met with Governor Chris Christie and discussed a possible new convention facility connecting Harrah’s and the Borgata. Do you think Atlantic City would support a large meeting facility like they do in Vegas?

I don’t see any reason why not. Given the critical mass in the Northeast region, and the proximity, particularly as airfare continues to increase, we’re a more viable option for the region. We have a much larger selection, more cost-beneficial for these corporations than the major cities around us.

But there’s no real concrete plans one way or the other, other than we want explore opportunities to continue to create demand in Atlantic City.

Are you growing the non-gaming revenue in Atlantic City?

If you recall, it used to be 70-to-30 percent gaming in Las Vegas, and now it’s 70-to-30 percent hospitality. So, we hope to see that continued improvement here in Atlantic City. And we know lots of people are less patient than we are. We recognize that takes time. But Caesars is leading the way in trying to transform Atlantic City.

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When it comes to your casino floor, there is nothing more important than keeping players engaged and excited. No one knows that better than Konami. With an amazing suite of alluring Concerto™ cabinets, larger-than-life multi-station releases, and robust SYNKROS® systems solutions, Konami continues to develop the most enthralling games and powerful technology to date. Designed to captivate any type of player that hits your floor, Konami’s proven products keep your customers playing and having fun. www.gaming.konami.com

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