Global Gaming Business, September 2018

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Global Gaming Business Magazine

September 2018 Vol. 17 • No. 9 • $10

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CONTENTS

Vol. 17 • No. 9

september

Global Gaming Business Magazine

COLUMNS

26 COVER STORY The Konami Edge

12 AGA More Than a Pledge

Konami Gaming continues to target the top of the slot market by tapping the advantage it has over other slot manufacturers—the ability to use the resources of the legendary video-game and arcade divisions of its parent company, Konami Holdings Corp.

By Frank Legato and Roger Gros

FEATURES

Sara Slane

14 Fantini’s Finance Surprise, Surprise Frank Fantini

38 Making My Point Remember Gordon Gekko?

Roger Snow

Cover: Steve Sutherland, President and CEO (standing), and Tom Jingoli, Executive Vice President and Chief Commercial Officer

16 Great Women Our second edition of Great Women of Gaming profiles the stars of what has been an elevation of women at the top levels of the gaming industry.

By Marjorie Preston and Erica Sweeney

DEPARTMENTS 6

The Agenda

8

By the Numbers

10 5 Questions 15 AGEM 44 New Game Review 48 Emerging Leaders With Eastern Shawnee Gaming Commission’s Ashley Burnside and Cosmopolitan of Las Vegas’ Adrian Cacuci

50 Cutting Edge

32 Vietnam’s Strip

40 Peripheral Power

The central coast of Vietnam could become the next region to host a strip of integrated gaming resorts.

One of the most important product areas feeding the advance of the slot market is the group of peripherals from monitors to bill acceptors.

By Andrew Klebanow

34

By Dave Bontempo

52 Frankly Speaking 54 Goods & Services 57 People 58 Casino Communications With Ryan Eller, President and CEO, Empire Resorts

34 California Central Sacramento leads the way in California’s tribal gaming market with three projects by major gaming operators.

By Dave Palermo 4

Global Gaming Business SEPTEMBER 2018

58

40

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THE AGENDA

Learning from Legends

Vol. 17 • No. 9 • SEPTEMBER 2018 Roger Gros, Publisher | rgros@ggbmagazine.com twitter: @GlobalGamingBiz Frank Legato, Editor | flegato@ggbmagazine.com twitter: @FranklySpeakn Monica Cooley, Art Director | mcooley@ggbmagazine.com

Roger Gros, Publisher

Lauren Byrge, Director, Sales & Marketing LaurenB@GGBmagazine.com Floyd Sembler, Business Development Manager fsembler@ggbmagazine.com

A

s a journalist—especially one in the trade magazine business—I often depend upon public relations contacts to gather information, schedule interviews or get some questions answered. It’s a field that is remarkably uneven, however. Some companies have dedicated executives in charge of that function. In others, it’s relegated to people in the marketing, corporate communications or even human resources departments.

Early this summer, I had a chance to connect with one of my former contemporaries from Atlantic City, Glenn Lillie, who was the public relations director for the Claridge Casino Hotel in the heady action-packed early days of the local industry.

We had gathered on the occasion of another old friend, Roger Wagner, visiting Atlantic City. Roger had been an executive with the Claridge in those days (and Glenn’s boss), later going on to lead Trump’s Castle and then becoming a high-level official in Jack Binion’s organization—one of the most successful gaming teams in history.

The three of us toured the two new properties in Atlantic City—the Hard Rock and Ocean Resort.

At Ocean, Roger and Glenn waxed nostalgic about how much space there is at the property—and how little they had to work with at the Claridge. But we also discussed the PR nightmare that was Ocean’s predecessor, Revel. Glenn explained how Roger allowed him free reign in addressing the media and handling communications for the Claridge, something that is virtually nonexistent today.

And since our memory banks stretch far beyond the current day, we began to discuss the giants of the public relations field in the early days of Atlantic City—people like Carlo Sardella, Sid Ascher and Phil Wechsler.

Carlo was an award-winning reporter who wrote for prestigious newspapers and added commentaries on the radio. As a PR man for the Miss America pageant, he brought Marilyn Monroe to the Boardwalk in 1952, creating a sensation. He was one of the few to interview the Beatles when they played at Convention Hall in 1964. His specialty was human interest stories, and he never failed to deliver.

Sid Ascher was another legend. As a young man, he wrote the famous “Fala” speech delivered

by Franklin Roosevelt (you youngsters can Google

6

this to see why it was so important to America’s longest-serving president), and went on to an illustrious career as a “press agent”—the term used before “public relations” was coined. Not only was he a gifted publicist, but also a songwriter. He always grumbled that he made a terrible mistake when he sold the rights to “The Very Thought of You” for a few hundred dollars. He was the oldest casino employee at 84 years young in Atlantic City when he worked for Glenn as PR manager at the Claridge.

Phil Wechsler was a reporter for the New York Daily News for years before he became the public relations director for the first legal casino that opened outside of Nevada, Resorts International, in 1978. The interest in that new casino was overwhelming, but Phil handled it with aplomb and grace. He later moved into the operations end of the business at Showboat Atlantic City.

Yes, it was a different world in those days—the time before social media and instant gratification.

Today’s public relations executives have a much more difficult task dealing with these elements of the media.

But I can’t help but wonder how these legends would have handled social media. They were so talented at disseminating information in their day using their reality, I imagine they would have adapted quickly and become true social media influencers.

I can imagine Sid “trending” on sites like Drudge or Politico. Maybe Carlo would get a million “likes” for his insightful posts on Instagram.

And Phil could have easily developed a #hashtag campaign for any casino that wanted to increase its popularity.

So maybe public relations isn’t a lost art.

Maybe it’s just evolving like so many other disciplines in this new world. After all, even the presidency has changed. Can you imagine the tweets that FDR would have put out at the height of the Depression when he was trying to “pack” the Supreme Court? (Google again, youngsters.)

So despite the fact that this column may make me sound like an old fogey longing for the “good old days,” quite the opposite is true. If you learn the lessons that our PR forefathers taught us, maybe we can make our reality that much better.

Global Gaming Business SEPTEMBER 2018

Becky Kingman-Gros, Chief Operating Officer bkingros@ggbmagazine.com Lisa Johnson, Communications Advisor lisa@lisajohnsoncommunications.com twitter: @LisaJohnsonPR Columnists Frank Fantini Sara Slane | Roger Snow Contributing Editors Dave Bontempo twitter: @bontempomedia Andrew Klebanow Dave Palermo twitter: @DavePalermo4 Marjorie Preston | Erica Sweeney Michael Zhu | Tom Zitt

EDITORIAL ADVISORY BOARD Rino Armeni, President, Armeni Enterprises

•

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

• Julie Brinkerhoff-Jacobs, President, Lifescapes International

• Nicholas Casiello Jr., Shareholder, Fox Rothschild

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

• Dean Macomber, President, Macomber International, Inc.

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

• Jim Rafferty, President, Rafferty & Associates

• Thomas Reilly, Vice President Systems Sales, Scientific Games

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

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

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

• Roy Student, President, Applied Management Strategies

• David D. Waddell, Partner Regulatory Management Counselors PC Casino Connection International LLC. 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 2018 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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© 2018 IGT. Except where ownership is otherwise identified, the trademarks used herein are owned by IGT or its affiliates, may not be used without permission, and where indicated with a ®, are registered in the U.S. Patent and Trademark Office. Artwork, descriptions, game play, photographs, videos, and other product details depicted herein are subject to change. IGT is committed to socially responsible gaming. Our business solutions empower customers to choose parameters and practices that become the foundation of their Responsible Gaming programs.

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BY THE

NUMBERS

ConVention ViSitorS to LAS VegAS CLiMb

Annualized Convention Attendance: 5/2008 - 5/2018 Las Vegas MSA

i

n May, Clark County’s annualized convention attendance saw a 0.39 percent decrease from the previous month, putting the annualized total at 6.5 million. May marks the third annualized convention attendance decline in five months. However, when compared to May 2017, convention attendance is still up 3.8 percent. The annualized peak of 6.65 million convention attendees occurred in December 2017.

Convention attendance saw significant gains in 2016 with 10 months above 10 percent YOY growth. Through all of 2017, the YOY rate of growth had fallen drastically to 3.9 percent. During the first five months of 2018, attendance grew by an average 4.9 percent YOY. Demand growth is being limited by maxed-out capacities at Las Vegas’ various convention facilities. The good news: In June 2017, the Las Vegas Convention and Visitors Authority’s Board of Directors gave final approval for an expansion and renovation of the Las Vegas Convention Center, which will allow the city to host more conventioneers. The expansion is expected to be completed by 2022.

This chart is part of a monthly report by Las Vegas-based RGE Economics. To access the full report, visit thestatpack.com/blogs/thestatpack/updated-las-vegas-metrics.

Live in 2018

8

Live in 2019-2020

Live in 2021-2022

Live after 2022

Global Gaming Business SEPTEMBER 2018

Unlikely to pass

Keeping track of Sports betting

W

ith the repeal of the Professional and Amateur Sports Protection Act in May, there has been a tremendous amount of activity surrounding sports betting. From legislative activity, regulatory implementation and business development, it’s difficult to keep track. But Eilers & Krejcik Gaming has a solution. The U.S. Sports Betting Monitor will be issued each month, capturing all the activity in the sector. To manage the sector, the company has hired Chris Krafcik as managing director for political and regulatory affairs. This map breaks down the states that have or may legalize sports betting. To download a copy of the monitor, visit ekgamingllc.com.

THE NAME’S BOND. JAMES BOND.

Introducing the JAMES BOND series of spine-tingling slot games. Developed with the latest in cutting-edge technology and starring the world’s most famous secret agent, these games bring action, excitement, sophistication and intrigue to any casino floor. Get in on the action with slots that have a license to thrill!

GOLDFINGER © 1964 Danjaq, LLC and Metro-Goldwyn-Mayer Studios Inc. THUNDERBALL © 1965 Danjaq, LLC and Metro-Goldwyn-Mayer Studios Inc. DIAMONDS ARE FOREVER© 1971 Danjaq, LLC and Metro-GoldwynMayer Studios Inc. CASINO ROYALE © 2006 Danjaq, LLC and United Artists Corporation. and related James Bond Trademarks © 1962-2018 Danjaq, LLC and Metro-Goldwyn Mayer, Inc. and related James Bond Trademarks are trademarks of Danjaq, LLC. All Rights Reserved. © 2018 Scientific Games Corporation. All rights reserved.

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NUTSHELL

“They

5Questions Bruce Deifik Owner, Ocean Resort Casino hen Revel closed in Atlantic City in 2014, it seemed like the death knell for the city. Its closing folW lowed three others that year, and would be followed by the shuttering of Trump Taj Mahal one year later. But like Atlantic City, Revel has returned, this time as Ocean Resort, owned by Bruce Deifik, the former CEO of the Greenspun Group in Las Vegas. His Ocean Resort has wowed visitors and had a decent first full month of July. He sat down with GGB Publisher Roger Gros at his offices in Ocean in August. To hear a full podcast of this interview, visit GGBMagazine.com.

GGB: We know about your time leading the Greenspun Group, but give us a little of your casino background.

Deifik: I’ve lived 30 years in and around Las Vegas. When I joined the Greenspun Group, they were actu-

1 2 3

ally exiting their involvement with gaming because of the downturn in the economy. But I continued to be involved. Over eight or nine years, I picked up the Silver Nugget with some partners. We bought the Lucky Club, out on the 15 near the Speedway. So I have two unrestricted gaming licenses and I’ve also learned through other investments in smaller casinos.

What was it that first appealed to you about Ocean?

Walking the property for the first time, I had some idea of what I was going to see from reports I had heard. I of course knew of the problems here, but I saw through that. I also saw a very heavy lift to open the property. The property was in immaculate shape—the power never had gone off. So when you take the building at $2.45 billion, add the central power plant at $157 million and a couple hundred million in furniture, fixtures and equipment, you’re approaching a $3 billion write-off. So I felt that on a priceper-pound basis, here was not only one of the greatest assets in Atlantic City, but also one of the great assets in North America.

How did you address some of the problems that existed at Revel that you knew needed to change?

First, we went through the posts on social media and began a list based on the comments people had made. We put together focus groups to determine the issues we needed to address. Non-smoking. If you were a smoker, there was no place for you at Revel. We fixed that. Two-night minimum stay? That was silly when the average stay was 1.2 to 1.4 nights. We fixed that. The wayfinding? The signage they had was poor. We made an investment in better signage and ambassadors showing people around. The layout of the casino floor was a problem. We fixed that by opening things up and making it easy to get around and added at least 50 percent new machines. The main escalator was scary. We invested several hundred thousand and put wings on the escalators so now everyone feels safe. It’s made a huge difference. And we got rid of the prison wall on the Boardwalk. Now we have a grand staircase with a sign. That is symbolic of what we’ve done at Ocean.

4 5

How about the operational issues? They didn’t really go after the gambler.

My attitude is we ripped the rear-view mirror out. So when we opened the doors on June 28, it was like we had never been opened. With our great CEO Frank Leone, we created what we think is one of the greatest four-tier loyalty programs in the industry. If you’re a member of our rewards system, we built a beautiful players lounge. The comps are coming. What they didn’t do before we’re going to do now.

Why the name Ocean?

That was my wife. People were telling us we had to get big consulting firms to create a catchy name and brand. But my wife looked at me and said, “Let’s just call it Ocean,” and that was it! We wanted to just call it “Ocean” by itself, but Carnival Cruise Lines was protecting that, so it became Ocean Resort Casino.

10

Global Gaming Business SEPTEMBER 2018

Said It”

“We are the tribe that helped save the first colonists from starvation, and we are the last surviving tribe of the original nine tribes granting Indian title to lands forming Plymouth Colony.”

—Cedric Cromwell, tribal chairman of the Mashpee Wampanoag Tribe, testifying before Congress on a bill that would put land for his tribe into trust

CALENDAR September 5-6: Casino Esports Conference 2018, Luxor, Las Vegas. Produced by Fox Marketing. For more information, visit CasinoeSportsConf.com.

September 5-7: International Masters of Gaming Law (IMGL) Autumn 2018 Conference, Hotel Boscolo, Prague, Czech Republic. Produced by IMGL. For more information, visit IMGL.org.

September 11-13: SAGSE Latin America, Costa Salguero Convention Center, Buenos Aires, Argentina. Produced by Monografie. For more information, visit monografie.com/SAGSElatam.

September 17-20: International Association of Gaming Regulators (IAGR) Annual Conference 2018, Hotel Scandic Copenhagen, Denmark.

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

September 25-26: Central and Eastern European Gaming Conference (CEEGC), Ritz-Carlton Budapest, Hungary. Produced by EEGE Events. For more information, visit ceegc.eu.

October 8-11: Global Gaming Expo (G2E), Sands Expo & Convention Center, Las Vegas, Nevada.

Produced by Reed Exhibitions and the American Gaming Association. For more information, visit GlobalGamingExpo.com.

October 16: European Gaming Congress, Grand Union Hotel, Ljubljana, Slovenia. Produced by EEGE Events. For more information, visit EuropeanGamingCongress.com.

October 25: UNLV Gaming & Hospitality Education Series: Sports Betting & Esports. University of Nevada, Las Vegas, Stan Fulton Building. Produced

by GGB Magazine and UNLV William F. Harrah College of Hospitality. For more information, visit UNLVGHES.com.

November 6-8: Asia Gaming Summit, Taipei, Taiwan.

Produced by Beacon Events. For more information, visit AsiaGamingSummit.com.

November 20: UNLV Gaming & Hospitality Education Series: The Perils and Possibilities of AML and Payment Processing. UNLV’s Stan Fulton Building, Las Vegas. Produced by GGB Magazine and UNLV William F. Harrah College of Hospitality. For more information, visit UNLVGHES.com.

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AMERICAN GAMING ASSOCIATION

More Than a Pledge

I THE

REAL DEAL D

IIn n ne nearly a rly 20 20 y years, ea rs, we’ve we’ve grown g row n tto ob become ecome the t he preeminent preem i nent ccasino a si no marketing ma rket i ng aagency gency and a nd ccontinue ont i nue tto o build bu i ld some some of of the t he b ig gest aand nd b es t b ra nds in in biggest best brands tthe he iindustry. ndust r y. See See for for yourself. fo you rsel f.

E x per ience matters. mat t ers.

Experience

Ca l l u Call uss ttoday oday at at 800-475-2000 800-475-2000 rrpmadv.com pmadv adv..com 12

Responsible gaming is a priority for the casino industry

t’s an exciting time to be a gaming enthusiast in America. The Supreme Court struck down the federal ban on sports betting in May, opening the doors for states and sovereign tribal nations to legalize sports betting. Fans of teams across the country could soon have more ways than ever to enjoy responsible gaming.

Sports fans in New Jersey and Delaware are already enjoying their new ability to wager on sports legally, and just last month, Mississippi became the third new state to offer legal sports betting since the ruling. Delaware, the first of these states to offer fullscale sports betting after the federal ban was lifted, saw more than $7 million wagered in the first month of operation. In New Jersey, more than $16 million has already been wagered by fans eager to participate in new, legal markets. Every dollar wagered under the protections of a legal, regulated market like those in Nevada, New Jersey, Delaware and Mississippi ensures greater consumer protections.

At the American Gaming Association, we have always taken our duty to promote responsible gaming seriously. When the Supreme Court struck down the federal ban on sports betting, we recognized more people than ever could soon enjoy expanded legal gaming opportunities. As such, we are making it a priority to ensure that everyone—seasoned participants and new bettors alike—is aware of how to bet responsibly.

Last month, as part of our annual Responsible Gaming Education Week, the American Gaming Association introduced an updated Code of Conduct for Responsible Gaming reflecting the new legal betting landscape on sports wagering, as well as new provisions for responsible advertising. This Code of Conduct serves as a model for the gaming industry to promote safe environments and responsible play for every patron across the country.

Earlier this year, we unveiled a new initiative, bringing together renowned thought leaders, industry stakeholders and academics to form a new Responsible Gaming Collaborative. This is designed to identify the programs and policies that most effectively address responsible gaming.

Specifically, the collaborative is committed to holding governments accountable for proven solutions. It is our hope that a group of such diverse stakeholders will produce truly innovative and

Global Gaming Business SEPTEMBER 2018

By Sara Slane

unique solutions to such an important issue.

Our priorities are to: • Conduct a comprehensive review of current responsible gaming policies and regulations; • Identify programs that work and those that fail; • Study regulations to determine which are based on solid evidence; • Determine whether government resources are being properly targeted toward effective programs and prevention; • Develop a set of recommendations and industry best practices; and, • Work with regulators and other stakeholders to understand the best approaches.

Each year, the gaming industry provides local and state governments with more than $300 million for responsible gaming research and treatment programs. Our collaborative will help make sure governments are appropriately allocating these resources and finding new ways to advance the mission and promote responsible gaming nationally.

The gaming industry is already an active partner within the communities in which we operate, supporting local, small businesses, providing career opportunities and good-paying jobs, and contributing to local nonprofits and philanthropic initiatives.

In 2017 alone, more than $9 billion in tax revenue went to state and local governments across the 24 states that have commercial casinos. This revenue from gaming supported local aid, health-care payment reform, transportation infrastructure, education and much more. Our commitment to the economic prosperity of our communities is matched only by our commitment to ensuring that those living in our communities have access to the resources and education to bet responsibly.

There’s so much opportunity for gaming in America right now. That’s exactly why the AGA, state gaming commissions across the country and the gaming industry’s Responsible Gaming Collaborative are all working together to promote safe, responsible gaming, serving as resources for all Americans who choose to enjoy this mainstream form of entertainment.

Sara Slane is senior vice president of public affairs at the American Gaming Association.

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FANTINI’S FINANCE

Surprise, Surprise The second-quarter earnings season is over, and taught us many lessons

T

he second-quarter earnings season has ended for the largest U.S. gaming companies as of this writing, and it brought some interesting surprises.

Macau gaming revenues continued to grow double digits and are expected to continue to do so. But growth has slowed from what was probably an unsustainable pace. The result: the stocks of the two most Macau-exposed casino operators, Wynn Resorts and Las Vegas Sands, fell 8 percent and 11 percent, respectively, from the time they reported their second quarters.

Interestingly, the prospects for both companies in Macau appear strong. Wynn Palace is ramping up, and the city’s transportation infrastructure improvements that disrupted access to Wynn Palace while under construction are about to start delivering customers to Wynn’s front door.

Las Vegas Sands, with Macau’s biggest hotel inventory, is positioned to benefit from evergrowing Chinese visitation to the city that is fast transforming into East Asia’s entertainment capital.

Indeed, Las Vegas Sands COO Rob Goldstein was downright Sheldon Adelson-ish on the company’s quarterly investor call.

Goldstein cited market share growth in a growing market, forecast 20 percent and 30 percent returns from planned hotel renovations and expansions, pointing to similar results at recently renovated Venetian rooms as the model, and cited continuing VIP improvement.

Most of all, Goldstein crowed about the big and rapid growth in visitation from affluent Chinese customers outside of nearby Guangdong province.

Those many millions of affluent Chinese are the future, Goldstein exclaimed.

Meanwhile, back in the more mundane world of U.S. regional casinos, Penn National, Boyd Gaming and Eldorado Resorts were announcing results that were anything but mundane.

Basically, they hit home runs. The result?

They sold off. Penn National’s stock lost 8 percent, Boyd 6 percent and Eldorado 6 percent in the following days.

14

By Frank Fantini

Even with the sell-off, regional casino stocks trade significantly higher than their historic levels of seven to eight times EBITDA. But they are not overvalued, and these three have intrinsic strengths: • A healthy U.S. economy. And with Eldorado and Boyd’s Nevada and Southern states exposure, they stand to benefit long-term from Sun Belt growth.

• Experienced management teams that are still young enough to give investors the combination of prudence and ambition.

• Improving underlying financial strength as they wring out expenses from acquired properties, grow operating margins and improve their balance sheets.

• Proliferation of legal sports betting, and likely mobile and online gaming to follow, that will both create new revenue streams and draw customers to their brick-and-mortar casinos.

These are characteristics that should appeal to true long-term investors. And the same can be said for smaller regional companies like Monarch and Golden Entertainment.

SLIDING INTO THIRD Caesars and MGM Resorts delivered something of a one-two punch when they forecast within 24 hours of each other that the third quarter will be soft in Las Vegas.

Both companies emphasized that the quarter will be an exception brought on more by comparison to an unusually strong events calendar last year than to long-term weakness.

Fourth-quarter bookings show a rebound.

MGM said it lost 100,000 room nights in the third quarter but that the fourth quarter is up 77,000. That is encouraging, but the counter argument can be made that last year’s fourth quarter was unusually weak as many customers stayed away after the Mandalay Bay shootings.

However, there is no doubt the number of major events was much greater last year.

Many factors go into visitation, and this is no analysis of them, but it might be asked whether parking and resort fees are slowly degrading the Las Vegas experience. Customers once excited to

Global Gaming Business SEPTEMBER 2018

be in Sin City now might feel like they’re being nickeled and dimed (or more like it, double-sawbucked) out of the fun.

On MGM’s quarterly conference call, CEO Jim Murren noted weakness is in mid-market properties, not upscale Bellagio and Aria. That would be consistent with less affluent customers feeling the sting of the fees.

At one point, Murren said, “What we don’t want to do is anything that diminishes the customer experience, because then they won’t be coming back.”

It might just be that resort and parking fees, especially as they rise to the point of taking a significant bite out of mid-market customer budgets, do just that.

It is interesting that Wynn, the most upscale of all Las Vegas casino companies, has eliminated parking fees for hotel guests and for customers spending more than $50.

MATURATION OF A CEO We’ve observed in the past couple of years that Murren appears to have grown into his CEO role.

A guy who once talked about art and creating urban development in Las Vegas, Murren now talks about profitability and rewarding shareholders.

More than any other Las Vegas casino operator, MGM has talked about RevPAR as an important measure. Investor conference calls have long featured recitation of hotel statistics.

On the most recent call, when some sell-side analysts complained about being surprised by the upcoming third-quarter softness, Murren snapped back, “We’re getting kind of weary of talking about RevPAR because that isn’t the metric by which we measure ourselves. It’s profitability,” he said.

“Hotel business is but one of our many cash registers,” Murren said in noting that MGM is a gaming and entertainment company.

Those are words a gaming investor wants to hear from the guy with whom he’s entrusting money.

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

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AGEMupdate AGEM MEMBER PROFILE GSL Gaming Group— Gaming Specialized Logistics—was formed by three highly respected gaming industry executives whose collective gaming experience encompasses over 70 years and over $1 billion in gross sales revenue—Kelcey Allison, chief executive officer; Mark Wiedemer, chief revenue officer; and John Glaser, chief operating officer.

Starting with logistics, GSL has added several companies over the past month. GSL’s focus is on introducing new companies to the American casino industry with both complementary and new products. GSL seeks out smaller companies with compelling products that have struggled to bring those products to market. GSL acts as a sales, service, marketing, systems and operations resource for companies that desire consulting services in any of these areas, and companies that are resource-limited that seek introduction into key commercial and tribal gaming entities.

GSL will be introducing a new, unique sports betting chair to the casino industry that has several key features to enhance the sports betting experience. The company also will be introducing a unique game conversion that allows for additional bets by the player on an existing game theme. GSL will also be debuting several new partners at G2E 2018.

Approaching G2E, GSL will expand its offerings and services to help companies make a major splash at the industry’s largest trade show. GSL will be announcing some major market disruption for the gaming industry.

GSL considers numerous opportunities and evaluates each one, and how GSL can advance its success. GSL takes pride in making sure its executives choose products and services that do not compete and, in most cases, complement the set of products and services that GSL represents.

For more information, contact Kelcey Allison at 702-480-8880 or email ka@gslgaming.com.

AGEM Board of Directors Actions – August 2018 • AGEM’s support of the Driving Arkansas Forward campaign continues following the secretary of state’s office questioning the validity of some of the signatures needed to place casino expansion on the general November ballot. There was a requirement to collect 85,000 signatures to endorse the proposal that would potentially allow two new casinos to be granted licenses and two existing racinos to allow slots. Roughly 20,000 of the 96,000 signatures put forward were deemed unacceptable; however, the secretary of state’s office issued a 30-day extension to get more signatures, and Driving Arkansas Forward reports more than enough valid signatures have now been gathered.

• The AGEM Compliance Committee recently received a draft of the updated language for the proposed Regulation 14 from the Nevada Gaming Control Board following Chairwoman Becky Harris’ request for a review of the original draft. This regulation was in response to AB 75 to allow more innovation to come into the gaming sector through the ability of the licensee (manufacturer) to partner with companies outside of gaming and “assume responsibility” for the hardware and software that ends up inside the machines. AGEM is reviewing the revised draft and will provide comments to Chairwoman Harris prior to a public comment period of review.

• The announcement on July 20 that the Japanese Diet enacted a bill authorizing the opening of casino resorts signals an exciting but long road ahead before implementation, but could also herald the start of opportunists taking advantage of activity in the region. AGEM members were informed of a new and unqualified organization trying to introduce gaming standards in Japan without the input of AGEM members who will ultimately be supplying games, systems and other technology. It is likely more organizations such as this will be formed, and the industry needs to be vigilant while trying to understand Association of Gaming Equipment Manufacturers July 2018 their intentions and goals.

• AGEM Director of Responsible Gaming Connie Jones recently attended the National Center for Positive contributors to the July 2018 AGEM Index included the following: Problem Gambling’s Annual Conference on Problem Gambling in Cleveland, Ohio. AGEM is a major sponsor of the event—the largest problem gambling conference in North America, co-hosted by the due ! Crane Co. (CR) contributed 9.88 points he AGEM Index Gambling increased Network in July 2018. a 13.03 event percent in stock price to NCPG and the Problem of Ohio. Thetofour-day hadincrease a jam-packed agenda $90.57. and was extremely well-attended. Jones highlighted concerns to AGEM members at the recent monthly The composite index finished the month at ! Aristocrat Leisure operators, Limited game (ASX:develALL) meeting therea needs to be greater involvement industry, particularly 565.39 that points, gain of 19.02 points or 3.48 by thereported a 4.21 percent increase in stock percent, June gaming 2018. companies, The AGEMto balance opers, techcompared experts andtoonline thetodebate.

Manycontributing countries are9.67 taking a price AU$32.20, points.

Index reported a year-over-year increase for the more approach to RG andhas utilizeclimbed technology! toInternational protect players,Game but these initiatives are not 34th aggressive consecutive month and Technology PLC (IGT) 141.46 points, 33.37 percent, since July necessarily workingorand require a balanced perspective thatcontributed the industry6.35 can provide. points due to an 8.78 2017. percent increase in stock price to $25.28.

• AGEM members recently approved sponsorship of $30,000 for the G2E Chairman’s Reception held During the latest period, eight of the 13 global in conjunction with the Gaming Hall of Fame induction ceremony.

The event is by invitation only and gaming equipment manufacturers reported Selected negative contributors included the will be held at the Venetian/Palazzo on October 10. following: month-to-month increases in stock price. Five decreases in stock price •manufacturers G2E 2018 willreported be held October 9-11 at the Sands Convention Center, Las Vegas. AGEM will once ! With its stock price falling 6.91 percent to during the month. again have a booth at the show located just inside the main¥5,250, show floorKonami entrance. Corp. (TYO: 9766)

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contributed negative 6.97 points.

The major stock market indices also saw gains during the month. The S&P 500 reported a month-to-month increase of 3.60 percent to 2,816.29. The Dow Jones Industrial Average grew 4.71 percent to 25,415.19, while the The AGEM Index increased in Julypercent 2018. The during compositethe index finished the month at 565.39 points, a gain of 19.02 points or NASDAQ increased 2.15 period to 7,671.79.

3.48 percent, compared to June 2018. The AGEM Index reported a year-over-year increase for the 34th consecutive month

AGEMindex

and has climbed 141.46 points, or 33.37 percent, since July 2017. During the latest period, eight of the 13 global gaming equipment manufacturers reported month-to-month increases in stock price. Five manufacturers reported decreases in stock price during the month.

The AGEM Index is published monthly by Association of Gaming Equipment Manufacturers (AGEM) and Applied Analysis | Copyright © 2018

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.

SEPTEMBER 2018 www.ggbmagazine.com

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Female

The role of women in the gaming industry has reached new levels of expertise and respect

persuasion

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he #MeToo movement has brought down high-profile men across society. From Harvey Weinstein to Charlie Rose to Kevin Spacey to Al Franken, almost every business and discipline has been hit with accusations and confirmations of atrocious behavior.

The gaming industry was not immune either. Steve Wynn, arguably the most recognizable figure in the business, was quickly forced to resign and sell all his interest in the company that he started, when multiple allegations were made.

While this behavior is reprehensible and most believe perpetrators got what they deserved, the silver lining in that cloud has been the elevation of the status of women in the industry at all levels. Wynn Resorts now has three women on its board of directors. MGM Resorts has four. The most any gaming company had as recently as early 2017 was one.

The role of women in the industry is changing as well. There are many more C-suite-level women in roles that traditionally went to men—finance, operations, food-and-beverage and more. There’s a burgeoning effort to mentor women to

By the Numbers Chelle Adams, Chief Financial Officer, Cosmopolitan of Las Vegas

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s chief financial officer of the Cosmopolitan of Las Vegas, Chelle Adams says she gets to connect the dots within her organization, as she oversees the many facets of the company’s finance department.

“I do love that there are no typical days,” she says. “There’s always something new and challenging going on.”

Her department handles general ledger, accounts payable, accounts receivable, billing, development, payroll, revenue audit, tax and treasury and many other areas, as well as the development and implementation of accounting and financial reporting policies and procedures.

Adams joined Cosmopolitan in 2012 as chief internal auditor. She also served as vice president of finance and corporate controller, and became CFO in 2015, following the acquisition of Cosmopolitan by Blackstone Group.

“There are a lot of opportunities that are here and a lot of changes over the last several years since Blackstone purchased us,” she says. “I love that since we are the corporate office, we’re able to identify opportunities and act on those, and bring that value to the organization directly—whether it’s revenue generation or expense control or any of the efficiencies and opportunities that we’re seeing.”

While working in public accounting for several years, Adams says she was exposed to many different industries, but gravitated to gaming and hospital16

Global Gaming Business SEPTEMBER 2018

bring them up through the ranks and not have to experience the discrimination and abuse that the pioneer women of the industry were forced to endure.

It’s for that reason GGB takes pride in presenting the second edition of profiles of powerful women, describing their path to success and advice for those who aspire.

The profiles we offer here are proof that the women executives of today are succeeding with the same formula that once applied only to men—hard work, dedication, education and connections. 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.

ity. Before joining Cosmopolitan, Adams was the partner-incharge of the hospitality and gaming industry group of public accounting firm RubinBrown in St. Louis.

Adams, who grew up in Oklahoma, received a bachelor of science in accounting at Truman State University in Missouri and is a certified public accountant. She credits her success in the gaming industry with being “blessed” with mentors along the way.

“I think the biggest thing that I’ve learned is they’ve helped me push outside my comfort zone,” she says. “That’s why I believe I am where I am today. They’ve been key as far as my growth and development from the standpoint of having somebody to talk to who understands the challenges and being able to bounce ideas off of.”

Serving others is important to Adams. She is on the executive board of Safe Nest, the largest nonprofit in Nevada dedicated to domestic violence issues. Mentoring others is one of the parts of her job as CFO that she loves most.

“I’ve been a mentor to mentees outside of finance, which has been fascinating for me because I get to learn also about some of the challenges that they have, whether it’s in table games or within the slot department,” Adams says.

There are many opportunities in the gaming industry, she says, but success depends on being curious, constantly learning, asking questions and building relationships.

“It’s just a matter of understanding what those opportunities are, finding out about them and putting yourself out there,” Adams says.

—Erica Sweeney

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She’s Got Game Tina Kilmer, Vice President, Product Compliance, Scientific Games

Skill Diversity Felicia Gassen, Association Director, Global Gaming Women

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elicia Gassen says her entry into the gaming industry happened “tangentially.”

Originally from San Francisco, Gassen moved to Las Vegas in 1999. “I felt like it was the Wild West where gaming was everything,” she says, adding that it took some time for her to fully embrace the industry.

Now, as association director of Global Gaming Women, a role she took over in December 2017, she seems to have found her niche.

Gassen says she enjoys helping carry out GGW’s mission to provide mentoring, education and networking to women in the industry through a variety of programs. Most women in gaming, from those working in the casino cage to the front line to the senior level, don’t usually get a roadmap for their roles or how to advance their careers—that’s where the nonprofit GGW comes in.

“I get a front-row seat to the inner workings of the gaming industry,” she says. “I get to hear about how women succeeded, how they made their presence known. And, I get to be mentored, as well, by my board of directors. I’m so very fortunate.”

Gassen began her career in the field of science. After studying integrative biology and entomology at the University of California, Berkeley, she worked in research and grant management at the University of California, San Francisco.

“That’s where I knew that I liked working in the nonprofit sphere,” she says. “I like bringing people together, and that’s where I excelled.”

She worked in public relations while living in Oregon and went back to school, earning a bachelor of fine arts from the University of Nevada, Las Vegas. Gassen worked in marketing, advertising and brand development before joining GGW. “I’ve got this kind of bizarre skill set, but it’s a perfect skill set for this particular job (at GGW),” she says. “Bringing together, facilitating, understanding the different kinds of roles that people may play—it’s really like the perfect storm of skills. That’s how I got here. It’s kind of like alchemy. I mix everything all together, and it works.”

Outside of supporting women in gaming, Gassen is passionate about the arts. She says her grandfather got her interested in photography at a young age, and so she supports a program at Marjorie Barrick Museum at UNLV that brings public school students into the museum.

When it comes to success in the gaming industry or any other endeavor, Gassen urges women to listen to themselves, ask for what they want and believe in themselves.

“We just want to help women in the gaming industry around the world develop professionally,” she explains. “That’s really what GGW’s mission is, and I support that mission wholeheartedly.”

—Erica Sweeney

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t’s Tina Kilmer’s business to stay ahead of the game.

As vice president of product compliance for Scientific Games, Kilmer leads a 37-person international team to ensure that the company’s products and systems pass muster with regulators in jurisdictions around the world.

A former executive engineer and project manager for Dow Chemical and Argonne National Laboratory, Kilmer moved from the Midwest to Las Vegas in 1999, hoping the climate would help ease her son’s respiratory problems.

Then, “fate intervened.” A friend who worked at Bally Technologies told her about a job there. That was the start of a 20-year gaming career.

Kilmer and her team oversee systems and products from the early concept stage through development. She describes her leadership style as supportive, collaborative, yet “tenacious.”

“A good leader listens and empowers individuals to do their best, encouraging everyone to make decisions, trust their instincts and expand outside their comfort zones. That’s the way we grow.”

She extends that generosity to the industry and community at large. As a founding member of Global Gaming Women, “I strive to embody its mission to support, inspire, and influence the development of women in the gaming industry,” Kilmer says. “Helping future leaders navigate their careers and passions is important for me individually; I think it’s our duty.”

She also supports multiple philanthropic efforts including Dress for Success of Southern Nevada, the Shade Tree women’s shelter in Las Vegas, Noah’s Animal House, St. Jude’s Ranch for Children in Boulder City and community food banks.

In 2016, when Kilmer received the Patty Becker Pay It Forward Award, Scientific Games executive Derik Mooberry hailed her as “a dynamic and treasured asset of our team” and “a powerful advocate for our industry, women in technology, and the community.”

What does Kilmer foresee for the industry in general and Scientific Games in particular?

“As games evolve, we expect to see convergence on and off the floor with integrated digital solutions and systems that make it possible for players to play anywhere, any time, and even in real time,” she says. “Whether we’re developing land-based games, mobile digital games or new sports opportunities, our goal remains the same: to develop innovative and engaging games players love.”

With a ringside seat “at the forefront of cutting-edge technology and innovation,” she says Scientific Games is “about what’s new and what’s next in the gaming industry. We’re very focused on providing cardless and cashless solutions powered by iVIEW 4, enhancing our digital offerings, and reimagining the casino of the future. Very importantly, we’re excited to bring OpenBet to help our customers capture the once-in-a-lifetime sports betting opportunity in the United States. It’s a very exciting time for us.”

To industry up-and-comers who would follow in her path, she offers this advice: “Follow your passion. Trust your intuition. Inspire and be inspired. And learn and share willingly.”

—Marjorie Preston

SEPTEMBER 2018 www.ggbmagazine.com

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No Place like Home Katie Lever, Chief Legal Counsel, The Drew Las Vegas

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rom her Las Vegas home, Katie Lever can see a new resort complex going up on the Strip’s north end.

Rising at the site of the former Fontainebleau, which foundered during the recession, the Drew Las Vegas is symbolic of the city’s dogged resilience and remarkable turnaround. It won’t open until late 2020, but Lever, the property’s chief legal counsel, is already preparing to celebrate.

“I lived in Las Vegas for 18 years and spent the entirety of it in the shadow of that property,” she says. “I’ve always wanted to see it come to fruition.”

Lever was serving as general counsel and executive vice president at Baha Mar in Nassau when she was recruited by Drew CEO John Unwin. She calls it “the perfect opportunity to be a part of a project that’s so important for the community.”

A Vancouver native, Lever came to Vegas in 2001, joining the law firm Brownstein Farber Hyatt Schreck. “I was lucky to end up on Frank Schreck’s doorstep—there was no better doorstep to fall through. I fell into the industry, then fell in love with it.”

She anticipated staying a year, tops. “Then at some point, something inextricably changed. A switch got flipped, and Vegas was home.”

From there, she sped through the ranks, becoming EVP and general counsel for Global Cash Access (and helping bring that product to an emerging jurisdiction called Macau). A “deal junkie at heart,” she has the bona fides to prove it. In 2013, Lever oversaw the $1.3 billion acquisition of SHFL Entertainment by Bally Technologies, and a year later presided over the legal team for the $5.3 billion acquisition of Bally by Scientific Games. Along the way, she helped build greater protections around SHFL’s intellectual property portfolio, “creating some new laws around that and some new business opportunities in the online space.”

She went on to open Baha Mar in Nassau, but seized the opportunity to return home. Lever is now steeping herself in the business of the Drew, and getting to know her associates “from top to bottom.”

“To be a good in-house practitioner, you have to know your business, and that takes being engaged with the people running it,” she notes. “You have to understand everybody’s role, whether it’s the guy on overnight shift running the surveillance department or the person in the C suite sitting at the very top of the food chain. That requires that you get out and talk to people.”

Asked what she considers the top leadership trait, Lever doesn’t hesitate. “It may sound funny, but for me it’s a willingness to be the first one in the room to put up your hand and say, ‘I have no idea what we’re talking about right now.’

That can take courage, but it’s impossible for one person to know it all. I consider myself a lifelong learner.”

It’s “an exciting time for Las Vegas,” she says, with an abundance of attractions—the new Smith Center, new sports teams and more—beyond and in addition to the city’s fabled casinos. And then there’s the Drew, which will offer almost 4,000 rooms and more than 500,000 square feet of meeting and convention space plus gaming, nightlife, retail and dining. The soaring mirror-clad complex will feature the Strip’s first JW Marriott, with the potential to tap into 100 million Marriott Rewards members.

“I totally beat the drum for Las Vegas, and this is going to be an enormous benefit,” she says. “I can’t wait for that.”

—Marjorie Preston 18

Global Gaming Business SEPTEMBER 2018

The 360-Degree View Helen MacMillan, Founder and Principal, All-In Gaming & Hospitality Advisory Group Inc.

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n 2015, when Helen MacMillan started a consulting group for the gaming industry, she established three rules: No. 1. Operate lean. “My business includes an employee of one—me. But the group itself includes 12 advisers, all experts in their fields, who are subcontracted by me. So the overhead isn’t passed on to the client.”

No. 2. The report is just a launch pad.

“We have to take the report and make it actionable. For clients, that’s where the value is.”

No. 3. Live up to the company name— All-In—with immersion in the business at hand. “Ninety-nine percent of the time when I’ve worked with consultants, they were talking about my business and sitting in New York. Being on-site, being there, is very important.”

A Nova Scotia native, MacMillan got into gaming through marketing and advertising, and eventually moved in-house at a Caesars Entertainment casino, later acquired by the Great Canadian Gaming Corp. Rising through the ranks, she ultimately oversaw strategic and tactical marketing for 14 casinos across the country.

Though the jurisdictions varied, one thing was constant (and sometimes undervalued): the link between the customer experience and the bottom line. MacMillan kept it in mind when she became regional vice president and general manager of Casino Nova Scotia.

“We did some programs I’m very proud of, nice legacy stuff like creating a tight relationship with the LGBTQ community and a really solid relationship with the business community,” she says. “It can take a few years to see results from a business standpoint, but when you have a vision and your different stakeholders let you take a gamble, if you will, that’s very rewarding.”

Along the way, “out of necessity,” she founded Women of Canadian Gaming as a resource and forum for women in the industry, “because there weren’t always a lot of women in boardrooms.” She then joined Global Gaming Women, “to connect all the dots.”

With an advisory panel that includes experts in compliance, customer relations, business analytics, Asian player development and more, All-In has diagnosed and prescribed solutions for everything from thorny government relations to tired slot floors to lackluster F&B lineups. Bringing in a new, younger customer base is “an industry-wide issue,” says MacMillan.

Again, being there, face-to-face with operators, guests and front-line employees, is the only way she works.

Three years in, MacMillan’s group is still Canadian-focused, but scoping out international opportunities “to see if we can assist with some of our expertise in countries and states that are expanding gaming and looking at the Canadian model. The great example is MGM, which recently purchased a responsible gambling program from one of the provinces in Canada. So we’re not there yet, but the outreach is happening.”

She’s also come up with a few more rules: “Do good work. Work with good people. And always over-deliver.”

—Marjorie Preston

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All in a Day’s Work Ann Simmons Nicholson, Founder and President, the Simmons Group

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sk me for the time,” says Ann Simmons Nicholson, “and I’ll tell you how to build a watch.”

That ability—to take apart, overhaul and reconstruct complex parts so they run like clockwork—has made Nicholson a leader in the fields of human resources and talent management.

The founder and president of the Simmons Group has been called upon to oversee HR for businesses as they open, close, expand and consolidate. In the case of mergers and acquisitions, she’s helped to integrate clashing cultures so they mesh. She’s consulted on staffing from hire to retire. Her client roster includes Konami, Aristocrat, Scientific Games, MGM, Caesars, Station Casinos and numerous tribal gaming operations.

Everything about the workplace is in a state of flux, she says: the ways people work, the places they work, the tools they use. The old rules no longer apply. Younger employees in particular have different career expectations and are less tolerant of hierarchies. Navigating this shifting landscape is easier, says Nicholson, for those who “focus on relationships. The rest will take care of itself.”

Her success in HR comes from a strong business background. In her 20s, working for a fast food chain and a convenience store chain, she was responsible for just about everything: operations, management, marketing, training. She learned the alphabets—IPO, KPI, and especially P&L—but given the choice, decided to work on the people side. In the 1990s, Nicholson joined Grand Casinos as a director of training and helped open four properties in three years. She was living in Kinder, Louisiana when the company bought the Stratosphere in Las Vegas.

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“I worked New Year’s Eve night in Kinder until 2 a.m.,” Nicholson recalls, “then flew to Las Vegas in time to watch New Year’s Day football.”

She founded her own company in 2000, and has watched the employment scene change almost beyond recognition. With low unemployment, she notes, “everybody who wants to or can work has a job.” That makes it a buyer’s market, in a sense: millennials can move from job to job until they find what they need. Part of what they need is cutting-edge technologies and ongoing recognition. Other personal currencies may include flex time or a cooler job title, and more money is great, too. For companies that don’t adapt, Nicholson cites the magazine Fast Company: “Those companies won’t exist in five years.”

“I never assume that what I knew yesterday will apply today,” she says. “We’re no longer a manufacturing economy; we’re a service economy, and people are our primary resource. It keeps coming back to people, underscored by a solid understanding of key performance indicators and the ability to read the dashboards.”

One example sums it up. Nicholson recalls a young employee who had what, to him, seemed like a huge problem.

“He was clearly in the creative department, dressed in flip-flops with purple hair. The CEO walked by and this individual, looking very distressed, said, ‘Yo, dude, we’re out of Monster in the vending machine. Your picture is on the wall; can you do something?’”

The CEO didn’t hop to it, but he did direct the employee to someone who would. Welcome to the new workplace. For a guided tour, see Ann Simmons Nicholson.

—Marjorie Preston

Global Gaming Business SEPTEMBER 2018

Breaking New Ground Karla Perez, Vice President of Gaming, Sysco

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wice in her career, working in sales for two major corporations, Karla Perez has been called upon to launch dedicated gaming segments. At uniform giant Cintas, Perez says she was “a guinea pig in casino-land” under then-president Bill Goetz.

“I had accounts in hospitality, hospitals and casinos, but I always gravitated toward casinos because they’re so much fun,” she says. “So they tapped me on the shoulder and said, ‘Do you want to focus on a gaming portfolio?’ I wasn’t sure I was ready for the challenge, and I was a little scared at first. But I said yes, and it’s the best thing that could have happened to me.”

When Goetz migrated to international food company Sysco, he recruited her to follow, once again to develop a gaming portfolio. “When I came on board,” says Perez, “it was just me. Now I have three people directly reporting to me, and we’re actively looking to hire more. So when I talk about a startup, we’re definitely starting from the ground up. But we’re growing.”

Based in Las Vegas, Perez manages tribal and commercial gaming from East Coast to West, with some forays into international markets. As the 54th largest company in the U.S. with 92 operating companies, “there is probably not a casino we don’t support today in some fashion,” says Perez.

“Our reach in the U.S. and our ability to cover every state and every major city is unparalleled.

And we all work hand in hand.”

An Okie by birth, Perez grew up “one of the few Hispanics” in the Sooner State, and “loved it, living among real people with great sincerity. I

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“I believe wholeheartedly that it’s our responsibility to give back and help guide and mentor, to help younger generations move ahead faster and smarter, and land in the positions they deserve.” grew up with those values.” She was the first on her father’s side to earn a college degree—majoring in both marketing and international business—and envisioned herself traveling the world. Having a family clipped her wings somewhat. “I realized it was maybe not the best things for me to travel so much. So I concentrated on the marketing side.” But she still is “on a plane all the time,” having visited 46 states and Puerto Rico.

Asked for the secret to her success, she replies, “I firmly believe in surrounding myself with the right people, people with the skills and expertise I don’t have. The team I’ve hired is incredible, and we get great support from leadership. It starts with that investment from our CEO, Tom Bene, and senior executives, including my boss Roger Smith. All of them support me and believe in our initiatives.”

She passes that kind of support down the line. “I believe wholeheartedly that it’s our responsibility to give back and help guide and mentor, to help younger generations move ahead faster and smarter, and land in the positions they deserve.”

She lives by two creeds: “One is be humble. Know that no one is better or worse than you. Two, have a strong work ethic. There’s really no such a thing as an 8-to-5 job; sometimes you just have to get things done.

“If you have that humility and work ethic, you’ll be successful.

Also, don’t be shy. Reach out to mentors. Ask questions. Have an insatiable quest for knowledge.”

A resident of Phoenix, Perez says she could not take care of business at Sysco without the help of husband Victor Larragoite, who has assumed a greater role on the home front with kids Konor, Madison and Bennett. And when she’s not on the job, one of her favorite pastimes is to play “Call of Duty” with the kids.

“Is it mindless? Absolutely,” she says. “But it brings out the competitor in me. I just love a good challenge.”

—Marjorie Preston

A Global Gaming Team To counsel clients in the rapidly-evolving gaming industry, Greenberg Traurig brings the combined capabilities of our gaming, corporate, government law and policy, labor and employment, immigration, litigation, commercial, real estate, entertainment, banking and financial services, mergers and acquisitions, and intellectual property attorneys. We have a distinguished multidisciplinary team and, as GGB honors some Great Women of Gaming, we are proud to spotlight a few of the exceptional women of our team: • Martha A. Sabol | Gaming sabolm@gtlaw.com | 312.476.5114 • Erica L. Okerberg | Gaming okerberge@gtlaw.com | 702.599.8073 • Lindsay E. Hutner | Labor & Employment hutnerl@gtlaw.com | 415.655.1312 • Emily H. Bryan | Litigation bryane@gtlaw.com | 617.310.6266 • Kara Bombach | Export Controls & Economic Sanctions bombachk@gtlaw.com | 202.533.2334 • Courtney B. Noce | Immigration & Compliance nocec@gtlaw.com | 678.553.2457 • Lynelle K. Bosworth | Government Law & Policy bosworthl@gtlaw.com | 518.689.1469 • Brooke E. Hazan | Intellectual Property & Technology hazanb@gtlaw.com | 212.801.6401

Global Gaming Practice Regulatory | Operations | AML | IP | Labor | Litigation | Privacy | Financing Real Estate Acquisitions | Learn more at gtlaw.com/capabilities/gaming

G R E E N B E R G T R A U R I G , L L P | W W W. G T L AW. C O M 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. ©2018 Greenberg Traurig, LLP. Attorneys at Law. All rights reserved. Attorney Advertising. Contact: Martha A. Sabol in Chicago at 312.456.8400. °These numbers are subject to fluctuation.

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Hard Rock’s Got Talent Meaghan Ryan, Vice President of Global Talent and Team Member Relations, Seminole Hard Rock Support Services

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eaghan Ryan always wanted to work in hospitality, but when she found her way to the gaming industry, she says it “just gets into your blood.”

“Working for casinos, it just added a whole other element where there’s honestly never a dull moment,” says Ryan, vice president of global talent and team member relations for Seminole Hard Rock Support Services.

“I’ve learned so much, and I’ve met some amazing people, and I truly feel like you get five years of experience in one year of working for a casino, just because there’s so many different aspects to it.”

In her role, Ryan handles recruitment and employee relations for the organization. In her four years with the company, she says no two days are ever the same, but she likes that it keeps her on her toes.

“I love my job because I feel like I have the ability to change people’s lives and help people personally and professionally,” she says.

A native of Orlando, Florida, Ryan received a bachelor’s degree in human resources from Florida State University. While working for a timeshare company, she was transferred to Las Vegas and later joined Caesars Entertainment. She served on the talent acquisition team at the corporate office, and then as human resources manager for Harrah’s New Orleans. Ryan also helped recruit and hire 1,700 employees for the opening of Horseshoe Casino Cincinnati (now, the Jack Cincinnati Casino) and was later named vice president of HR for the property.

“I never would have gotten here if I didn’t have people that believed in me and supported me and helped me become a better person and a better leader,” Ryan says—and, she takes any opportunity she can to pay it forward.

Ryan was part of the team that launched Women of Seminole Gaming, a networking, mentorship and educational program for women in the organization. She is also co-chair of the education committee for Global Gaming Women and serves on the board of Junior Achievement of South Florida.

“I think the funny thing about gaming and casinos is that a lot of people think it’s such a large industry, and there’s just so many options, but if you talk to anybody that’s been in gaming for a while, you realize that you’re really only one degree separated from anybody in the industry,” she says.

Ryan urges anyone entering the HR field in gaming to remember that their mission is to help people do their jobs well so they can provide a service to guests. She also encourages newcomers to step out of their comfort zones whenever possible, ask for advice, find a mentor, and, most of all, have fun.

“I think that’s what sometimes people forget,” Ryan says. “We’re so busy caught up in the day-to-day that we forget to have fun ourselves. We forget to look around and realize what great experience we’re getting while we’re at it.”

—Erica Sweeney

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Global Gaming Business SEPTEMBER 2018

‘The Way, Not the Wall’ Martha Sabol, Co-chair, Gaming Practice, Greenberg Traurig LLP

M

artha Sabol’s career didn’t follow a predictable, point A-to-point-B course. But she has no doubt that the more circuitous route led her to the right destination.

The Concord, New Hampshire native had achieved notable success in management and sales at both Aramark and ServiceMaster when she jumped track to enroll in Loyola University Chicago School of Law. What others might view as an abrupt transition, Sabol calls “a natural next step in my business career. I always enjoyed the legal aspects of contract negotiations and using the law to help advance business ventures.”

She first “fell into” gaming as assistant general counsel and then general counsel for Hyatt Gaming. “I came to know the entire business and the unique intricacies of the gaming industry in the U.S. as well as internationally.”

She had one complaint, and it sparked a lightbulb moment: “I was frustrated by the fact that we were required to work with different law firms every time we entered a new jurisdiction. I thought working with one international law firm with a global gaming practice would be the best way to serve clients.”

In 2007, when she joined Greenberg Traurig, “that was the vision I shared, and 11-plus years later, here we are. We’ve built a global gaming practice that can serve all of the legal needs of our gaming clients.” Sabol is now partner and co-chair of the firm’s gaming practice.

Miami-based GT has some 2,000 lawyers in 38 offices around the world, all with an entrepreneurial bent, Sabol says. That means she can tap legal experts in many disciplines and multiple jurisdictions at almost a moment’s notice. “We invariably have talented lawyers on the ground who are studying what’s happening in government and are able to advise on new expansion opportunities or initiatives,” she says. “In an industry as competitive as ours, clients demand that we’re not only informed about new developments but that we have the foresight to advise them on trends and best practices as the landscape is shifting. Our team approach works well to support the global nature of the practice.”

Asked what she enjoys most about her work, Sabol says, “Every day is a new adventure. My clients have become my friends, so I get to work with friends—to help them solve problems and to plan and execute their next ventures.”

Her motto in life and work is, “Be the ‘grease,’ meaning, be the way and not the wall. It’s our job to figure out how to get things done. We need to be creative while following the strict regulatory guidelines in place in the gaming industry.”

Looking back, Sabol says, she always envisioned herself in the business arena in a dynamic, entrepreneurial role.

“Perhaps I didn’t take as straight a path as others may have taken,” she says, “but my aspirations have come true.”

—Marjorie Preston

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The Turning Point Ellen Whittemore, Executive Vice President and General Counsel, Wynn Resorts

I

t’s been a turbulent year for Wynn Resorts. In February, gaming legend and company founder Steve Wynn resigned amid allegations of sexual misconduct. He was followed by several longstanding board members, and one of the company’s key executives, Kim Sinatra.

Enter Ellen Whittemore, who replaced Sinatra as general counsel and also assumed the role of executive vice president. With 30 years in the industry, most recently with Brownstein Hyatt Farber Schreck, Whittemore believes she was tapped for the role by CEO Matt Maddox because of her history as a gaming regulatory lawyer.

“Both Matt and Kim, who encouraged me to consider the position, appreciated that my approach to the practice of gaming law is not adversarial and that it is a true partnership with gaming regulators,” she says. At this company, at this time, that stance could not be more vital.

Whittemore applauds the addition of three more women—Dee Dee Myers, Betsy Atkins and Wendy Webb—to the board of directors, but notes that Wynn is already “first in class for the number of women at the top of the organization. Certainly my appointment shows that commitment, and the company has established additional training programs that help women to excel in their careers. I’m not coming into this situation to make changes in that regard, but to support already-established projects and policies.”

A native of northern Nevada, Whittemore calls herself “a gaming lawyer by accident.” In 1986, working for then-Attorney General Brian McKay, she was appointed a deputy AG in the gaming division, and soon was involved in litigation regarding the landmark Stardust investigation, which dealt a decisive blow against mob infiltration in casinos. She was part of probes into alleged rigged slot payouts and cheating schemes in casinos, and was involved in proceedings to put people on the list of excluded persons, colloquially known as the “Black Book.”

Eventually, she left to spend more time with her growing family. But her retirement was short-lived. Soon Whittemore was recruited to join Lionel Sawyer & Collins, run by former Nevada Governor Grant Sawyer and Bob Faiss, “one of the deans of the gaming bar.”

At that point, she exercised some hard-won influence, and declined to take the job unless she could work a flexible schedule (an unusual perk at the time). “I wouldn’t have been allowed to do that,” Whittemore observes, “if I hadn’t had that expertise in gaming law.”

During her 30-year career, she served as MGM’s gaming regulatory attorney, working with giants of the business like Kirk Kerkorian and Terry Lanni. That experience, she says, will be an advantage as she moves inside.

Needless to add, Whittemore joins Wynn Resorts at a pivotal moment, as the firm deals with the fallout from the scandal, works to complete its multibillion-dollar Massachusetts resort, works to maintain its pre-eminent position in Macau, and considers vying for one of the first integrated resort licenses in Japan. The new executive hopes to be “in the thick of it all.”

“I’m looking forward to working with the legal team at Wynn Resorts and at the properties, and with exceptional executives like (CEO and President) Matt Maddox and (CFO and Treasurer) Craig Billings,” Whitte-

24

Global Gaming Business SEPTEMBER 2018

“I’m looking forward to working with the legal team at Wynn Resorts and at the properties, and with exceptional executives.”

more says. “I hope to learn from them and hopefully be impactful with my own expertise. That’s my goal—short-term and long-term.”

In spite of the tumult, she says, “it’s an exciting time to join the Wynn Resorts family. The company has taken extraordinary steps to ensure the confidence of employees and regulators. I look forward to assisting in that effort, turning the page on a new chapter and seeing what additional great projects we can create for the benefit of the employees and stakeholders.

“I’m quite excited for the opportunity.”

—Marjorie Preston

WE’VE KNOWN IT ALL ALONG

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Vice President of Product Compliance

Congratulations on being named one of the

2018 GREAT WOMEN OF GAMING. Your strength, passion and leadership are an inspiration!

2018 Scientific Games Corp. and its Subsidiaries. All rights reserved.

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One of a Kind

Konami Gaming continues to distinguish itself from the rest of the slot market by drawing on the resources that make the company unique

BY FRANK LEGATO AND ROGER GROS

I

f competing in today’s market increasingly means being everything to everybody, Konami Gaming is on its way.

The supplier continues to grow its business in new ways, from innovative betting schemes that naturally lead to higher wagers to groundbreaking new ways to utilize smartphones as player’s club cards.

Konami Gaming, Inc., based in Las Vegas, always had the advantage of tapping the resources of the other divisions of parent Konami Holdings Corporation of Japan, but the company has really hit its stride in this respect in recent years, after building out its Las Vegas corporate campus in 2015, when it added 200,000 square feet of integrated research, develop-

26

Global Gaming Business SEPTEMBER 2018

ment and assembly operations.

The company has put that space—as well as the integral 160,000 square feet of the original facility—to good use, steadily gaining market share by evolving its product library with a parade of new cabinets, new game styles and unique products that utilize the expertise of its sister companies—legendary video-game producer Konami Digital Entertainment Co.; and Konami Amusement Co., producer of the most well-known arcade games in history.

Konami has remained one of the top slot manufacturers in the business by constantly evolving its product line, crafting cabinet styles to meet the preferences not only of its casino customers, but their customers, the people who play Konami games. Unique cabinet and game styles like Advantage Revolution were followed by the Podium series and the current Concerto series, which is still evolving.

“It’s all about innovation in driving additional product families,” says Steve Sutherland, president and CEO of Konami Gaming. “And the ultimate determination of how well those products are doing is, of course, customer play.”

Konami has continued to capture new customers for its main slot groups not through elaborate multi-level bonus sequences, but by sticking to two main credos: give players value for their dollar, and keep things simple.

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“Our industry is rapidly changing, and cabinet design is evolving as 4K (video) technology is now coming down in price. So, we’ve got our game engines aligned to put future game content on that 4K component. It’s almost like the fashion industry—things change rapidly, so we’ve got to be at the forefront.” —Steve Sutherland, President and CEO, Konami Gaming

That means innovative game mechanics like Strike Zone, which identifies an area within the reel array in which symbol-driven bonus events occur frequently. The Strike Zone grows as the player increases the bet, and at a minimum bet, it’s easy to see what you’re missing out on.

“Value is our key driver,” says Tom Jingoli, executive vice president and chief commercial officer of Konami. “We’re using unique incentives to bet higher, and adequately showing the value of those incentives. It’s clearly communicated to the player, and that helps drive incremental revenue.

“That’s really what it’s all about. These features are designed not to move money from one end of the floor to the other, but to tell players, ‘If you invest a bit more in this casino’s operations, we’re going to give you a little bit more.’ In the past, it was ‘Bet more, win more.’ That’s an intangible message. But when players watch the win area grow, and seeing the values they can win actively grow, that’s tangible. And we’re finding that’s resonating with the players who are engaging with our product.” “(Strike Zone) products are performing really well in the field,” adds Jingoli. “We’re already starting to see some other manufacturers trying to copy that. Usually, when that happens, you know you’ve done something right.”

“Our focus is on producing games for gamblers,” says Sutherland. “Typically, those people understand how to go into the pay table and determine how they’re winning. Ultimately, though, there are a lot of new players coming onto the casino floor. We have to be able to communicate to them, as well as the serious gambler. The sooner you can educate them, the better.”

R&D Power Strike Zone is one result of Konami’s extensive research and development efforts centered on the end user of its products. “A significant amount of

“Value is our key driver.”

—Tom Jingoli, Executive Vice President and Chief Commercial Officer, Konami research goes into playing, and building the next hit game,” says Jingoli. “I’ve been playing the games, and then making games people want to play, and want to have fun on—because we’re really competing in the entertainment space. We’re competing with video games, movies, television, Netflix... even mobile phone devices.

“When you see the demographics on people playing entertainment games on their mobile phones, they’re getting older and older, crossing into what you would say is our core demographic.

So, we have to see what types of fun mechanics are performing. We have a very robust research team that sees what’s happening in the market, and what’s working—and how we need to be building our games.”

“We want to ensure our R&D group has the appropriate infrastructure to develop highly competitive games,” adds Sutherland.

Konami’s growing game library utilizes the latest technology that reaches that closely watched and growing core demographic, a fact that is reflected in the new cabinets the company rolls out this year—the giant-sized Concerto Opus, which SEPTEMBER 2018 www.ggbmagazine.com

27

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was previewed at last year’s Global Gaming Expo and is ready for launch; and the KX 43, to be debuted at this year’s show.

The KX 43 premium cabinet—so named for its 43-inch portrait monitor—is a microcosm of everything the R&D team has found players want in a modern slot machine, from attractive edge lighting to features like dual spin buttons, an LED button deck and a built-in charger for smartphones. The Concerto Opus, with its massive 65-inch high-definition flat monitor, is designed to wow the player and give game designers a vast palette on which to create new features.

“Our industry is rapidly changing,” says Sutherland, “and cabinet design is evolving as 4K (video) technology is now coming down in price. So, we have our game engines aligned to put future game content on that 4K component.

It’s almost like the fashion industry—things change rapidly, so we’ve got to be at the forefront.”

Jingoli adds that the new KX43 cabinet package is a result of feedback from operators at last year’s G2E show. “I just grabbed the slot directors and said, let’s take a walk around the floor,” he says. “What do you guys like? And everybody kept coming back to that clean-looking cabinet. And we got on it right away, and turned it around in one year. I’ve been with the company 15 years, and I believe this is the fastest we’ve turned a cabinet package around. It was really good to see the entire organization working together. This wasn’t just R&D; it wasn’t just mechanical engineering, it wasn’t compliance—it was everybody. It was our whole organization that took ownership of this project.”

The same attention has been paid to Konami’s new lineup of multipleprogressive slots. Jingoli notes that player preferences have evolved over the past 10 years, noting that at the height of the recession, players wanted frequent moderate jackpots to keep them in the game, to which Konami responded with the Quick Strike series. “Now that the economy has gotten better,” he explains, “we’ve seen a shift in trends away from the achievable daily jackpots to the aspirational-style jackpots. People believe in chasing that award, because it’s going to make a difference to their month or year, versus 28

Global Gaming Business SEPTEMBER 2018

needing to fund their daily play.”

Jingoli adds that a balancing act by game developers is required to make those big-jackpot games more suitable for long-term play. “The ability to hit that top award certainly gets people to the game initially, but then it’s all about the game play mechanic,” he says. “If the entertainment value is there, it will keep the consumer on the box longer.

“Hitting the top award doesn’t happen every day, so the player has to feel the value in the game.”

Unique Resources Konami’s R&D prowess, of course, extends beyond progressives and compelling new game mechanics. The company’s unique position of being able to tap the unique resources of the amusement and arcade divisions of its parent company sets it apart in creating games that go beyond the traditional reel-spinning genres.

For instance, the company has seen great success with its Fortune Cup arcade-style horse-race game, which has packed customers in at the D Las Vegas and several other locations, through a combination of mechanical and digital technologies. At the D, it is offered side-by-side with the Sigma Derby mechanical horse-race machine, the legendary game on which the modernized version was based.

Other unique games to come from collaboration with Konami Amusement Company are Crystal Cyclone and the skill-based music game Beat Square. And at the MGM’s Level Up Lounge, a skill-based version of the legendary Konami arcade game Frogger has been bringing in new customers.

“We’ll continue to leverage those resources,” says Sutherland. “There’s a long history, and a lot of experience in game design, and there’s a huge library of games over there. Based on what we learned with Fortune Cup, Crystal Cyclone and Beat Square, we will draw further into that library and bring more games to market.

“Our industry’s changing rapidly, so we have to start provisioning alternative forms or entertainment on the casino floor. The patron of today is not the patron or tomorrow, so I think we have a great opportunity there.”

Jingoli adds that the games are bringing new customers into the casinos.

“Fortune Cup is definitely driving incremental play,” he says. “In a number of the locations, we’re getting 60 percent to 80 percent of the play from uncarded players, when the venue itself has around an 80 percent carded player base. These

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are brand-new players, and it’s driving that incremental revenue for the venues.”

He adds that the focus on Beat Square, a musical rhythmic challenge based on a popular Konami arcade game, has been to use what has been learned from the Frogger game. “We are in an evolutionary state in creating this market segment,” Jingoli says.

“The learnings we obtained from Frogger, we rolled into Beat Square. The learnings we get from Beat Square, we will roll into the next version of the game.”

Synkros Evolves Evolution is not restricted to Konami’s game divisions. The popular Synkros casino management system is in a constant state of evolution as player preferences evolve, and as new technologies crop up that will make play more convenient for customers and more efficient for operators.

The latest of such efficiencies is SynkConnect.

SynkConnect is a near-field communications (NFC) feature built into Synkros that can allow players to dispense with plastic loyalty club cards. Instead of placing a card in the reader, the player can simply tap his or her smartphone at or near the card reader, causing the bezel to turn green to indicate the loyalty card is active and ready to track play. After play, the customer can either tap again to disengage or the system will do it after there is no activity for a set time.

For players still using flip phones, the NFC system works with fobs, room keys and other devices.

SynkConnect will debut at G2E, but Konami already is planning to introduce it in cruise-ship casinos for Carnival and Norwegian Cruise Lines. Jingoli says the next step could be to sell or license the technology to third parties.

The other big advancement for Synkros is a new technology for issuing a credit line to players to seamlessly use at at slot machines, patented by Ellis Island Casino owner Gary Ellis, called MarkerTrax. The technology allows a player who is issued credit by a casino to download credits from that amount directly to a slot through Synkros cashless wagering accounts for completely cashless slot play. “You would go into a casino and be issued a credit line, just like if you were on a table game,” Jingoli explains.

“Then, Synkros creates a credit line account for you. If I’m sitting at a slot machine, I can draw off the credit line, and play. When I cash out, Synkros automatically funds back the amount owed on your credit line. Of course, you can walk away without any winnings above your credit line. We’re really excited about this. We’ll be showing this at G2E this year, and targeting to go live in a beta environment by December 2018.”

Jingoli says Konami entered into a licensing agreement with Ellis and MarkerTrax LLC, and the next steps will be for the two entities to sell or license the technology to third parties.

“The Synkros system now has the recognition it’s deserved for a long time,” says Jingoli. “Our relationship with Golden Entertainment is outstanding—over the next six to 12 months, for the first time, we will install it in a property on the Las Vegas Strip (the Stratosphere). With Carnival Cruise Lines, we’re expanding our relationship. Over the past five years, every major operator has taken a look at the Synkros platform.”

The Synkros advancements are accompanied by a move for Konami into the interactive space. The company has partnered with Reno-based Spin Games to place Konami content for online and social casino play via Spin Games’ re30

Global Gaming Business SEPTEMBER 2018

mote game server. “We’ve started expanding in that area,” Jingoli says.

“It’s been a nice business for us. We certainly like to partner with our land-based casino partners. We don’t have our own site or server. We don’t compete against our customers, but we provide content to them. It’s worked very well, and we’re starting to increase our footprint.”

“We also have a strategic relationship with an entity called Playstudios, which started through MGM, with myVEGAS, and it’s been very successful,” adds Sutherland. “Most recently, we started entering the real-money gaming space, last year in New Jersey. We’re enhancing that and moving forward in Europe. We have a number of our operators that operate their own social sites. So, we provision content through our remote game server to them. We’re not in competition with them; we’re just placing the product, so they have the same assets online that they have on their land-based casino floors.”

New Horizons While Konami forges ahead on all cylinders with its current product groups, the company is looking to expand into other markets, beginning with video lottery terminals. The company is moving into the Canadian VLT market, later this year or early next year, according to Sutherland. Then, next on the horizon, Konami will look at moving into the Class II Native American markets.

“We’ve been very successful in the Class III marketplace, so we’re leveraging those technologies into other areas,” Sutherland says. “We’ve had a very significant effort under way up in Canada. From there, we can leverage those same technologies, if we wish, into the Class II marketplace.”

He adds that there also are growth opportunities in the VLT market in the U.S., in Oregon and Illinois, as well as huge markets in Europe.

For the future, count on Konami to leverage all its resources on an international basis. “The key right now is, how do we leverage our four major design groups?” says Sutherland. “We have Konami Gaming in Las Vegas, we have Konami Australia just outside of Sydney. We have Konami in Japan, and we have a group in India. How do we utilize those assets to target core segments in the market? Because there are a lot of different segments, there’s a lot of opportunity there.”

Asked what his goal is for the company five years out, Sutherland returns to an Olympic metaphor he used five years ago, which became the name of a major game group—to be on the “podium,” which means among the top three slotmakers in the business.

“Five years from now, I’d like to see us on the podium—truly on the podium, and recognized as one of the top three,” Sutherland says. “It’s a huge challenge, but we will continue to develop on the game and systems sides of our business with highly innovative products. I’d like to bring in some alternative form factors true to Konami to get there. I don’t want to sacrifice the core business, but let’s pull from that entertainment library, and start driving it to differentiate ourselves from the competition.”

Being different from the competition has gotten Konami to where it is today.

Expect more of the same as the company strives to be on that podium.

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Vietnam’s STRIP

Laguna Vietnam is located in Laguna L ng Cô

The central coast of Vietnam is likely to become the next region with multiple destination casinos and integrated resorts

“T

By Andrew Klebanow

he Strip” has long been a popular term in the casino industry. Originally used to describe Las Vegas Boulevard from Sahara Avenue south to Russell Road, the term was adopted to describe clusters of casinos and hotels in other jurisdictions including the Cotai Strip in Macau and, most recently, for a proposed multi-property development called the Osaka Strip in Osaka, Japan.

While the latter development remains a possibility, a new strip of hotels, resorts and casinos is quickly emerging on the central coast of Vietnam, in and around Da Nang: the Central Coast Strip, stretching from Hoi An to Hue. Da Nang, on the coast of the East Sea at the mouth of the Han River, is the fourth-largest city in Vietnam. With a number of UNCESCO World Heritage sites nearby and beautiful beaches, it has long been an attractive tourism destination. It also offers a vibrant urban experience combined with outdoor recreation.

Tourism into the region is now growing dramatically, fueled by visitation from China, Japan and Korea. Some 6.6 million people visited Da Nang in 2017, up 19 percent from the prior year. For the first six months of 2018, Da Nang has already hosted 4 million visitors. To accommodate this demand, a new international terminal opened in May 2017 at Da Nang International Airport. A second airport in Hue, approximately 80 kilometers to the north, provides additional capacity for domestic arrivals and international charter flights.

Hotel occupancy in the upscale/luxury segment alone grew by 35 percent from 2014 to 2017, and since 2012, the average daily room rate has doubled to over $200. In response to this growth in tourism, a surge of hotel construction is taking place. Resorts, golf courses, malls and amusement parks are sprouting along the coastal highway. Amid this milieu of construction are three integrated casino resorts that will further redefine tourism along this new strip of development.

Casino Gaming Today Casino gaming is already available in Da Nang today at one full-service casino and a number of smaller slot parlors. Entry to casinos is restricted to foreigners and Vietnamese citizens holding foreign passports. Currently, the dominant provider of gaming is the Crown International 32

Global Gaming Business SEPTEMBER 2018

The Crown International Club is located within the 535-room Crowne Plaza Hotel

Club, located within the 535-room Crowne Plaza Hotel. The Crown International Club offers a main gaming floor with approximately 122 slot machines and 22 table games. In addition, a much larger third-level casino is devoted exclusively to junket play.

The Crown International has long been considered one of the most successful casinos in Vietnam. It drives much of its business through junkets, and those junket players occupy 80 percent of available rooms at the hotel.

To satisfy growing demand, the property is being expanded with another hotel tower. Upon completion, the overall development is expected to offer approximately 1,100 hotel rooms and an expansive mix of non-gaming amenities.

Located near the Crown International is Club 99 at the Furama Resort.

It offers gaming under a provision that allows five-star hotels to offer electronic gaming devices. Restricted to foreigners only, it offers a mix of electronic table games and slot machines. A similar gaming venue can be found at the One Opera Hotel in central Da Nang.

Even with this supply, casino gaming is about to enter a new and much larger phase of development.

The Draft Decree In January 2017, the central government issued its long-awaited “Decree on Casino Business.” The decree, among other things, redefined the minimum capital investment needed to open a casino and set limits on gaming capacity. It also elevated regulatory standards to those of other international gaming jurisdictions.

Machine and table game capacity will be determined by invested capital, with the government permitting one gaming table and 10 gaming machines for each US$10 million of investment. A project must have a total capital investment of at least US$2 billion. This has not deterred developers from moving forward with construction.

The decree also addressed gambling by Vietnamese citizens. It established a three-year pilot scheme whereby residents who have a regular in-

p. 32 vietnam:Layout 1 8/16/18 3:29 PM Page 33

come of VND 10 million per month can access and gamble in designated casinos. While none are on the central coast, the program may be expanded at some point in the future.

The New Integrated Resorts Located approximately 30 kilometers south of Da Nang is Hoiana, an integrated casino resort that is one year away from opening. Comprised of 165 hectares along three kilometers of coastline, Hoiana’s first phase will include a 1,176-key New World Hotel, 100-key Rosewood Residences, a championship golf course and a casino with 140 table games.

The project is being developed by Suncity Holdings, VinaCapital Group

The New World Hotel in Hoiana is being developed by Suncity Holdings, VinaCapital Group and Hong Kong based VMS

and Hong Kong-based VMS. A second phase, consisting of additional hotels, a water park, retail mall and lagoon, is scheduled to open in 2023. Hoiana will serve as the southern anchor to the Central Coast Strip.

Less than 40 kilometers north of Da Nang sits Laguna L ng Cô, a destination resort complex. Laguna L ng Cô opened in March 2013 as a 280-hectare resort along a 3-kilometer stretch of beach. The property, comprised of a Banyan Tree Hotel, Angsana Hotel, private residences, championship golf course, spa, conference center and supporting food and beverage facilities, is part of a larger master-plan development.

The company is now moving forward with a major expansion of that master plan that will include more hotel brands, 1,300 additional lodging keys and a casino. Laguna Vietnam recently received an investment certificate from the Vietnamese government and a gaming license, conditional on the completion of the next phase of its master plan. This phase of expansion is expected to open in mid-2021, followed by another phase that will include an additional 700 lodging keys. The company is currently in discussions with potential operators to develop and operate the casino.

The resort setting at Laguna L ng Cô stands in contrast to the high-rise developments at Hoiana and Crown International. As such, it is expected to attract gaming and leisure customers with different vacation profiles than those who would find the Crown International or Hoiana appealing. Nevertheless, given the relative close proximity of the three integrated resorts, the casinos and hotels along the Central Coast Strip will share synergies and enhance the overall appeal of the region.

The combination of hotels, resorts, retail, water parks, shopping malls and integrated casino resorts along the central coast of Vietnam is creating a new and exciting entertainment destination.

The Central Coast Strip may soon become part of the tourism industry’s lexicon.

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Andrew Klebanow is a partner in Global Market Advisors, one of the world’s leading consulting companies on gaming and hospitality.

gamingsupport.com gamin gsupport.com SEPTEMBER 2018 www.ggbmagazine.com

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Capital Concepts Sacramento leads California growth as tribes seek new compacts

By Dave Palermo

W

The Enterprise Rancheria of Maidu Indians broke ground in May for a $440 million Hard Rock Hotel Casino in Yuba County, 30 miles north of Sacramento

ith the approaching 20th anniversary of compacted American Indian casinos in California, future expansion of the nation’s largest Indian gaming industry appears limited to a handful of projects in Sacramento and the central part of the state.

The Sacramento-area market is particularly intriguing, with Hard Rock International, Caesars Entertainment and Boyd Gaming partnering with three Indian tribes in projCaesars Entertainment broke ground recently for ects valued at more than $1 billion.

Harrah’s Northern California, a $168 million casino owned by the Buena Vista Band of Me-Wuk Indians In addition, a Washington, D.C. Circuit Court ruling in April upheld a $250 million casino project near Fresno by the North Fork Rancheria of Mono Indians and Station Casinos. But the decision is expected to be appealed.

In all, there are a dozen pending casino projects stretching from Calexico on the Mexico border to Barstow, Bakersfield and the tiny hamlet of Etna near the Oregon state line. Most are seeking financing, trust land determinations, court rulings or federal and state regulatory approvals.

Some of the projects have been on the Department of the Interior’s Office of Indian Gaming list of fee-to-trust land applications for well over a decade.

Cheryl Schmit, director of Stand Up California, a nonprofit that monitors gambling issues, contends many of the developments face a myriad of legal and regulatory challenges.

“I’m not sure they will all get it on,” Schmit says. “To me, it’s still a wait-and-see for some of them.”

“Several tribes would rather take their chances with the new governor— Meanwhile, at least 38 of about 60 tribes that signed landmark tribalor in court—than sign on to Governor Brown’s overreaching terms.” state regulatory agreements in 1999 and 2000 have yet to renew compacts Attorney George Forman, who represents members of the Compact due to expire in 2020. Seventy-six California tribes now have compacts.

Tribes Steering Committee, a coalition of about 20 tribes negotiating comTwenty of the larger, more lucrative tribes already negotiated compact pacts with Brown, declines to predict how many will ink agreements by the extensions with Governors Arnold Schwarzenegger and Jerry Brown. And August 31 deadline. Negotiations can be extended to 2022. sources predict additional compacts will be ratified before the legislature “There are a number of issues that are causing a number of tribes a deconcludes in August and Brown is termed out of office. gree of heartburn,” Forman says.

California is the largest Indian casino market in the U.S. There are curCompact Confusion rently 63 licensed casinos in the state operated by 61 tribes, according to the But a number of tribes are not enamored with Brown compacts that call for California Gambling Control Commission. The Lytton Band of Pomo Indimandatory mitigation payments to local governments, contributions to a ans operates a non-licensed, bingo-style casino in San Pablo, near San Frangrant fund for non-casino and limited gambling tribes, labor concessions cisco. and other provisions that may be subject to legal scrutiny.

California tribes generated $8.9 billion in 2017, according to federal “There will be several compact amendments queued up for ratification regulators and other sources—roughly 27 percent of the $32.4 billion won in August, but far short of 38,” says a tribal attorney who requested by 250 gambling tribes in 29 states. anonymity.

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A Quick Start Has Slowed Casinos on tribal trust lands in California sprouted up in quick fashion after the landmark compacts were signed and ratified with passage of Proposition 1A in 2000.

The Indian Gaming Regulatory Act largely limits casinos to tribes under federal recognition when IGRA was enacted by Congress in 1988.

But there later was a great deal of controversy as newly recognized, restored and landless tribes sought trust lands under IGRA exemptions, seeking to launch additional casinos.

California has 110 of the 367 federally recognized tribes in the lower 48 states.

Officials with the California Nations Indian Gaming Association (CNIGA) did not respond to requests for comment.

But much of the political and legal acrimony and local opposition surrounding the birth and growth of tribal gambling in California appears to have dissipated as the market has matured and new opportunities have diminished.

“Things have pretty much calmed down,” Schmit says. “The only projects out there are low-hanging fruit.”

Legislators ratifying compact extensions over the past two years praised their indigenous neighbors for creating jobs and prosperity for surrounding non-Indian communities.

Local officials commended tribal leaders for working with counties and municipalities on zoning and traffic issues and fire and police protection.

Labor leaders acknowledge tribes for creating quality jobs, providing generous wages and benefits and making it easier for workers to unionize. Tribal casinos employ more than 56,000 mostly non-Indian workers.

Fears that the growth of indigenous governments following passage of Proposition 1A would harm non-Indian communities largely failed to materialize.

“There was a lot of apprehension,” Senator Patricia Bates, R-Laguna Niguel, said in recently voting to approve a compact extension. “There was a lot of worry as to whether there would be the kind of mitigation” necessary to address traffic and environmental issues.

“Critics didn’t realize it was always in the tribes’ interests to do things right, to treat their employees well and to work with the communities,” Senator Steve Glazer said.

bling were worth the revenue they bring in. Now, the issue is simply, ‘OK, what’s the revenue?’ The downside of gambling is not an issue, except as an excuse to suck more money out of the tribes.”

North Fork and other tribes have fought nearly a decade of legal, regulatory and political battles—facing opposition from state and local officials and even other tribes—in seeking projects that are just now coming to fruition.

“These projects have been around for a long time,” says economist Alan Meister, author of the Indian Gaming Industry Report. “Some of them have been years in the making. They’ve been opposed by card rooms, other tribes and anti-gaming groups. They’ve been a ways in coming.”

Litigation remains at the state and federal level questioning Interior’s authority in approving pending projects, some coming at the eleventh hour as President Barack Obama appointees left their positions.

Interior is revising rule-making on fee-to-trust land acquisitions that may prompt legal opposition to several of the pending gambling developments.

And the National Indian Gaming Commission (NIGC) is reviewing regulations on management contracts and collateral agreements between tribes and business partners, including commercial casino companies.

“I would like to see them really scrutinize partnerships,” Schmit says of the NIGC, particularly those between tribes and casino companies proposing gambling facilities on newly acquired trust lands, often referred to as “off-reservation gambling.”

“There are still a lot of questions that need to be resolved,” she says.

“The proponents of these projects want to get them done quickly because they don’t know what the end game will be.”

The potentially lucrative Sacramento-area market is poised to experience the most explosive growth with three major casino industry brands—Hard Rock, Caesars/Harrah’s and Boyd Gaming— chomping at the bit.

The New Normal Tribal lobbyist David Quintana says there has been a “normalization” of gambling in California as tribal governments, counties and municipalities cooperate on traffic, public safety and other issues.

“Ten years ago gambling was seen in a different light by most of the public,” Quintana says. “Projects were a lot more controversial. With the normalization of gambling in California, it’s just another joint.

“Years ago, there would be studies to determine if the bad aspects of gam-

Sacramento Market Heating Up The potentially lucrative Sacramento-area market is poised to experience the most explosive growth with three major casino industry brands—Hard Rock, Caesars/Harrah’s and Boyd Gaming—chomping at the bit.

• Hard Rock—owned by the Seminole Tribe of Florida—is partners with the Enterprise Rancheria of Maidu Indians in development of a $440 million resort in Yuba County, 30 miles north of Sacramento.

• Caesars/Harrah’s and the Buena Vista Band of Me-Wuk Indians broke ground in April on a $168 million casino near Ione, about 30 miles east of Sacramento.

• Boyd Gaming is partners with Wilton Rancheria of Miwok Indians in development of a $400 million casino, hotel and conference center in Elk Grove, just south of Sacramento.

Enterprise Rancheria, which first applied to the federal government in 2003 for permission to acquire the Yuba County property, halted construction on a smaller casino two years ago because of litigation from nearby casinos and anti-gambling groups. The tribe won the lawsuits. A SEPTEMBER 2018 www.ggbmagazine.com

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federal judge also ruled the state acted in bad faith in not granting the tribe a compact to operate casino-style gambling. The tribe will be allowed to equip the casino with up to 1,600 slot machines, adding additional slots after two years.

“The Enterprise Rancheria is thrilled and honored to work with Hard Rock International, one of the world’s most recognized brands,” Tribal Chairwoman Glenda Nelson says.

Hard Rock CEO Jim Allen calls Sacramento “a great fit for the brand.”

Buena Vista’s agreement with Caesars Entertainment will bring a Harrah’s brand casino to Ione next year. The relatively small, 71,000-square-foot casino will feature 950 slot machines, 20 gaming tables and four restaurants.

One of 42 California rancherias terminated by the federal government in 1958, Buena Vista was among 16 tribes restored to federal recognition in 1987.

“Harrah’s is a world-class brand that is known for offering a fun gaming atmos-

“This will further diversify our nationwide portfolio, given it’s our first presence in the Northern California market.”

—Raymond Hitchcock, Chairman, Wilton Rancheria

Boyd Gaming will build and operate the Wilton Resort for the Wilton Rancheria of Miwok Indians in Elk Grove

phere with unparalleled customer service,” Chairwoman Rhonda L. Morningstar Pope-Flores says. “We’re confident that it will attract more people to our destination.”

A federal judge in March upheld Interior’s decision to place 35 acres of land in federal trust for the Wilton Rancheria, which was restored in 2009. The land/trust decision by Interior Deputy Assistant Secretary Larry Roberts was made on the last day of the Obama administration.

Stand Up California intends to appeal the ruling.

“We are grateful to the United States government for defending and upholding their federal trust responsibility to our tribe and for protecting our inherent right to have tribal trust lands,” Wilton Rancheria Chairman Raymond Hitchcock said in a statement.

“Planning and design work continues on this project, and we expect to start construction by the first quarter of next year,” Boyd President and CEO Keith Smith said in a July conference call.

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“This will further diversify our nationwide portfolio, given it’s our first presence in the Northern California market.”

The competition may become intense for other casinos in the area, particularly Thunder Valley in Lincoln, operated by the United Auburn Indian Community.

Cache Creek in Brooks, operated by the Yocha Dehe Wintun Nation, and Red Hawk Casino, operated by the Shingle Springs Band of Miwok Indians, will also be impacted by new casinos.

Thunder Valley has been the dominant player since it opened for business in 2003 under management by Station Casinos, a partnership that was later resolved. The 17-story luxury resort has 400 rooms with a massive casino equipped with 3,000 slots and 125 table games.

“It will definitely have the potential to increase competition for some of the tribes up there,” Meister says of the new properties. “There’s bound to be some impact on existing tribes and casinos.”

But Meister and others believe Thunder Valley—being first to market with a large, upscale property and strong management—will withstand new competition.

“When you’ve been in a market that long and you’re entrenched—when you have the experience and have developed your customer database— there’s obviously a competitive advantage to being first in the market.

“Thunder Valley has a very big, nice property. It’s not old by any means.”

Resort spokesman Doug Elmets says Thunder Valley will likely remain

the dominate property in the region because of its location, upscale facilities and management.

“We have the best location in one of the most economically successful counties in the state,” he says. “We have invested heavily for years in marketing and advertising and customer loyalty programs.”

The Hard Rock and Boyd Gaming properties, while significant investments in excess of $400 million, are smaller than other California gambling operations, Elmets says.

Most agree with Elmets’ assessment. But Hard Rock resources and Boyd’s expertise in local and regional marketing will cut into Thunder Valley’s earnings.

“Hard Rock is going to be an awesome competitor,” Reno, Nevada gambling consultant Ken Adams says. “Hard Rock’s corporate resources are so large. They have entertainment resources. They have restaurant resources. They can bring things into that market.

“Boyd and Stations understand regional markets and what they can generate. They know where they can take customers from each other and where they can’t. Boyd will know exactly what segment they’re going to be catering to as a primary market.”

Adams predicts all the properties would likely prosper.

“That’s a very large market, and when you count the number of major casinos, there aren’t that many,” he says. “You’re only going to come up with 10 or so.

“It’s not as if it were a saturated market.”

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MAKING MY POINT

Remember Gordon Gekko?

Follow these simple rules to success

F

ilthy rich. From New York. Hair slicked back with about 10 quarts of Prestone.

(No, make that Quaker State.) Swanky pad in the Hamptons. Girlfriend half his age and twice his height. Poetic appreciation for sunrises and insider trading. You know, you know, the greed-is-good guy from the movie Wall Street.

Well, when advising his protégé Bud Fox on the best survival training in business, Gekko didn’t cite The Wealth of Nations, or The Harvard Business Review, or even Forbes magazine.

“Read Sun-tzu, The Art of War,” he tells Bud, referring to the ancient Chinese tome on military strategy. “Every battle is won before it is ever fought.”

If they ever remake that movie—please Lord, not another sequel, but a remake—they need to bury that book deep and permanent and far way.

Next to the Terracotta warriors would be nice.

And replace it with The 48 Laws of Power.

Because this self-described self-help guide can teach you more about surviving the gauntlet of corporate politics than anything Sun said more than 1,000 years ago.

Power, as we will abbreviate it from now on, was written by Robert Greene and published in 1998. Greene is also the author of The 33 Strategies of War and The 50th Law, proving: A) he’s no onehit wonder; and B) he needs help coming up with better titles for these books.

Truth be told, there’s a bit of fluff in Power’s 459 pages. Not all laws, the literal ones or the literary ones, are created equal. For example, did you know it’s illegal in Alaska to awaken a bear in order to take its picture?

Then there’s assault and murder and arson and such.

Same goes for this book. There are laws, and then there are laws. So, in the spirit of Reader’s Digest and in deference to ADHD sufferers everywhere, let’s whittle these 48 down to the top seven.

Never Outshine The Boss For some of us, this has never been an issue worth worrying about. But if you are in fact more gifted and talented than the person signing your paycheck—or writing your annual review—you’d bet38

By Roger Snow

anyone see how hard you actually work.

ter watch out. Greene argues many successful folks are riddled with insecurities, and while you think your growing prominence and popularity in the organization makes them look good, it may instead be sealing your doom.

Seem Dumber Than You Are

Shut Up

Reinvent Yourself

Resist. As satisfying as it is to run your mouth and show everyone how smart you are, resist. As fun as it is to traffic in juicy rumors, resist. When others persist, you resist. And if you’re doing it now, cease and desist.

Silence always makes you appear thoughtful and interesting, and if used properly, intimidating. It is indeed the secret weapon of the successful. Use it.

Madonna knows this. Justin Timberlake, too.

Ditto Will Smith. Michael Richards—aka Kramer—of Seinfeld fame? Meh. Not so much.

In order to remain relevant, you must be nimble enough to change with the times. Or, as is the case with truly epochal stars, be inventive enough to make the times change with you. And if there’s anything harder to alter than yourself, it’s other people’s perception of you.

Chalk it up to first-impression syndrome. For the most part, folks are going to think about you the way they way they thought about you when they first met you. Even if it’s, like, 20 years ago.

That’s why it’s so hard to go from the mail room to the board room, from the outhouse to the penthouse. It’s why you call your high-school friends by their old nicknames like Eggbert or Tankus McBig. It’s why people freak out when former Mouseketeer Britney Spears stands on stage, dripping sweat and wearing only a smile, some body glitter and a six-foot-long albino python.

In business, show or regular, you must reinvent yourself if you want to stay relevant. Challenge yourself every year to learn a new skill. Sharpen up the old ones. Dress better. Groom better. Network better. Set new goals. Make new friends. Bury old axes.

Just not in your enemy’s head.

And, if all else fails, move. Take your talents, as that basketball player once said, to South Beach.

Or North Shore. Or Singapore. Or Widnes. Or Los Angeles. Or Sydney. Or Gibraltar. Or, well, wherever.

Just don’t stay in the same place, or stay as the same person, forever.

Lose Losers You try. You’re a decent person with a good heart, so you try. You try to help a friend. Or a family member. Or the friend of a family member.

Maybe you recommend him for a job. Maybe you loan her a couple of bucks. Anything. But in the end, it’s your money that evaporates and your reputation that deteriorates.

It sounds cruel, but just steer clear of these fire starters. Some people, for a myriad of reasons, are cursed. Jinxed. Plagued. Hexed. We’re talking some badass juju. And the more you try to save them from self-immolation, the more likely that you’ll go up in flames as well.

Don’t Be A Jerk Be careful how you treat people, especially if you are in a position of power. Swat 100 flies and 99 will buzz away. But there’s always one that will come back, pissed off, and lay its eggs in your ear.

And if self-preservation isn’t enough, how’s this?

Just be nice.

Act Natural If you’re lucky enough to be good at something, make it seem easy. Downplay preparation and formal training. Tell people you just have a knack for numbers, product development, sales, whatever. The prodigy, the natural, they’re the ones we find intriguing. Just as a magician never lets anyone see how he does a trick, you should never let

Global Gaming Business SEPTEMBER 2018

Hmmm. Not sure what the author is getting at here.

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.

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Slot Add-Ons Like cars, slot machines can be customized, and there are a myriad of companies participating in the market

By Dave Bontempo

S

creen monitors and slot peripherals—two energized concepts—provide lucrative revenue paths.

Monitors house the rising world of vivid graphics, touchscreen technology and curved, tilted angles. Slot-screen innovation reaches largesse with forthcoming models being compared to living-room comfort. Suppliers position themselves for the trend, because although monitor sizes change, convenience cannot. Players want sleek gadgetry. And they want new.

While monitors house the action, slot peripherals feed it. Printers, bonusing software and bill validators maintain the flow of currency. They also offer incentives to keep players engaged. This realm includes repair mechanisms trying to nip malfunctions in the bud. Less downtime won’t sound bells and whistles, but will resemble a jackpot to casino bean counters.

The expanse of screens and slot peripherals provides vendors abundant opportunity.

Strong Rollout What an inFuzion for JCM Global.

Last fall, the Japan-based company announced high hopes for its Fuzion technology, which, combined with the iVizion bill validator and Gen 5 thermal printer, unleashed the possibility for each slot machine to become a multi-line profit center. The product package offered the potential to vend and redeem lottery tickets, race and sports betting, facilitate daily fantasy sports (DFS) wagering, conduct cross-enterprise promotional couponing for carded and uncarded players, and streamline tax form processes.

For JCM, a leading transaction technologies supplier for the banking, retail, kiosk and gaming industries, this was perceived as the final piece of a major revenue machine.

And, like the sounds from a slot, cha-ching ensued.

During the first quarter of 2018, JCM notched a literal string of 7s. Osage Casinos opted to convert all seven of its Oklahoma casino floors to the company’s transaction solutions.

JCM planned to install iVizion, Gen 5 and the ICB 3.0 Intelligent Cash Box system, while making Osage Casinos the first in the United States to have its Fuzion technology, officials said.

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Global Gaming Business SEPTEMBER 2018

The conversion helps Osage Casinos increase security and anti-money laundering compliance. It also streamlines slot-floor processes including the ability to download an entire floor’s firmware instantly.

The partnership may become even more profitable over time. The Osage group planned an August 31 opening for its $150 million casino expansion in Tulsa. This coming-of-age development, denoting the ownership group as major players, provides a larger potential universe for JCM. In July, JCM said its cash transaction technology was installed at Landing International Development Ltd.’s casino at Jeju Shinhwa World on the South Korean island of Jeju. Gen 5, iVizion and ICB all were placed in the 5,500-square-meter casino.

In August, the Australasian Gaming Expo was the showcase for a fleet of the company’s bill-validation products. They include the BlueWave DX firmware upload tool that allows users to quickly update bill validator firmware with less downtime, and the TBV bulk feeder, giving operators the convenience of accepting multiple notes and currencies simultaneously.

Whether by bill validation on the machine or in a kiosk pumping the cash one may bring there, spare parts matter.

JCM’s iVizion is field-proven with more than 250,000 units shipped. Its CIS technology scans the entire note or ticket, reading more than 9.5 million data points on every note, more than twice that of the nearest competitor.

The GEN5 has a faster CPU and faster

JCM’s iVizion is fieldproven with more than 250,000 units shipped.

Its CIS technology scans the entire note or ticket, reading more than 9.5 million data points on every note, more than twice that of the nearest competitor.

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“We have seen continuous improvement in the system, as Epicentral allows users to run multiple promotions at the same time, create games within games, offer multi-user/multi-site promotions, run different promotions on different slot game banks, segment players by tier and promote to different levels of carded players.”

—Tracy Chernay, Senior Vice President of Global Casino, Gaming and Lottery, TransAct

print speed, and flexibility to print TITO and promotional tickets.

Downside protection exists with BlueWave DX, an indispensable tool for service technicians. Using high-speed data transfer, this lightweight, handheld tool allows operators to update, configure and test bill validators and printers.

The high-contrast, two-color LCD screen enables users to easily select firmware versions before transferring them. By connecting the BlueWave DX to the bill validator via USB, the device enables the user to view the current firmware version and acceptance rate on the last 100 banknotes, enable or disable ICB function, run diagnostic tools, and review status errors. The BlueWave DX is powered by either AAA batteries or a DC power supply. It supports iVizion and Gen 5, among a series of models.

players by tier and promote to different levels of carded players,” Chernay indicates. “This one-of-a kind software also offers the ability to redeem, print or reprint bonuses at multiple locations. It also has an enhanced user interface and more reporting options.

“Epicentral is more powerful, more flexible and easier to use than ever.

Some recent updates to the software include an improved, more user-friendly design center and an enhanced third-party integration via Epicentral’s SE API. An additional update is the ability to scale the award delivery services, resulting

Epic Milestone It’s wise to accommodate both hardware and software.

That’s been a sound strategy for Hamden, Connecticut-based TransAct Technologies, which rides the Epic product line on both fronts. Epicentral, its most noted offering, opened to high expectations in 2013. It was touted as the industry’s lone enterprise-level promotion and software bonusing suite able to target customers in real time with unique custom-designed coupons. Epicentral features regular upgrades.

On the hardware end, TransAct delivers top TITO printers through the complete lineup of Epic gamingdevice printers, according to Tracy Chernay, senior vice president of global casino, gaming and lottery. The fleet includes the Epic Edge printer, the Epic Edge TT and Epic 950 TT enclosures.

The packaged lineup allows comprehensive implementation. Chernay says TransAct software, combined with the company’s casino printers, allows operators to connect with gamblers while they play their favorite slot machines and electronic table games.

“We have seen continuous improvement in the system, as Epicentral allows users to run multiple promotions at the same time, create games within games, offer multi-user/multi-site promotions, run different promotions on different slot game banks, segment SEPTEMBER 2018 www.ggbmagazine.com

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GAME helps track slot machines, gaming tables and all critical peripherals from the time one places an order to the moment it is put to rest. Users have the tools to initiate curative or periodic maintenance.

in an increased print volume.”

The gamification aspect—creating a game within a game—is essential, Chernay asserts. This feature allows casinos to attract new customers while boosting engagement and retention of current players. As this marketing initiative grows, Chernay says to expect more casinos to use it.

Some big operators and some emerging properties already endorse Epicentral. Chernay says Foxwoods Resort Casino in Connecticut increased its lowertier player ADTs by over 50 percent when it teamed with TransAct. “Working with us, the loyalty marketing team designed a promotion to randomly reward a slot player using their Foxwoods Rewards card with a bonus ticket redeemable for cash payouts up to $500 or prizes including gift cards for many of the more than 30 Foxwoods dining experiences,” Chernay says.

“They named their program FoxPerx, and the players began to look forward to the offers that would provide them with incentives based on their play.

“Most recently, Jake’s 58 Hotel & Casino in Islandia, New York began using Epicentral in conjunction with the Aristocrat Oasis 360 slot management system,” Chernay adds. “Through Epicentral, the casino can show all promotions on the media window of the slot machine, making it convenient for players to choose their own offers.”

This year, the product could be called Epic Five.

Soup to Nuts Gaming Support, a prominent European provider of outsourced gaming services, has a major connection installing, maintaining and refurbishing all 14 properties operated by Holland Casino. On a daily basis, it monitors more than 7,000 gaming machines, nearly 500 live tables, and their peripheral equipment.

The Rotterdam, Netherlands company helped put the Holland casinos in the game. Now they keep them there via Gaming Asset Management Environment (GAME), a software-enabled watchdog helping properties anticipate maintenance problems. It was released at G2E last year.

“Gaming Asset Management Environment gives complete control over all of the most important assets of an organization in one glance, real-time,” company founder and CEO Lucien van Linden says. “For many casino organizations, maintenance of slot machines and equipment is of the utmost importance, since the service level is often a good indicator of the hospitality towards the visitor. By offering smarter tools to these organizations, they are able to accomplish their maintenance cycles more effectively and purposefully.”

With GAME, maintenance is only performed when an asset such as a slot 42

machine requires attention—ideally just before a failure is likely to occur, van Linden asserts. This minimizes the downtime of the equipment being maintained, production hours lost to maintenance and the cost of spares and supplies.

According to van Linden, GAME helps track slot machines, gaming tables and all critical peripherals from the time one places an order to the moment it is put to rest. Users have the tools to initiate curative or periodic maintenance.

Accessible by computer 24/7, globally, it provides information about the daily occurrences of these high-valued assets and allows direct interaction to ensure limited downtimes, he says.

“Using GAME’s clean and intuitive dashboard minimizes learning curves so the user instantly becomes productive,” he adds. “It’s configurable to fit every need for companies’ staff and processes. Users love being able to ‘zoom in’ to the assets, allowing them to view and solve issues without leaving their desk.”

GAME’s dashboard gives a clear overview of all assets at one glance, whether it be a single property or spread across multiple locations.

In clear tabs, the user can track them from order until delivery, configuration, transport to the venue and placement on the casino floor.

Filtering options by type, brand or location allows users instant access to the asset of choice and all of its relevant information. The information can be edited to ensure proper disclosure to those who need it.

By zooming into the locations, individual assets can be reviewed as well as their settings, maintenance schedule and overall history.

The fully integrated Predictive Maintenance Module monitors the condition of a property’s assets in real time by sensoring orientation, G-forces, thermal imaging, magnetism, sound, temperature, humidity and air pressure.

While helping operators GAME the slot-machine system, van Linden believes the next brand of big spenders, millennials, prefer live gaming products like poker and blackjack rather than video-based slots.

Displaying New Lines Quixant, a U.K.-based company focusing on gaming hardware design, development and manufacturing, showcases a new range of contemporary monitors and digital button deck solutions. Its array of floating, ultra-high-def and curved-screen monitors was unveiled at the Australasian Gaming Expo.

The latest releases include the “floating” 23.8-inch and 27-inch designs. Quixant officials tout this as stunning content delivery in an impressive aesthetic package with multiple touch-screen technology Quixant “floating” monitor options. The 27-inch model

Global Gaming Business SEPTEMBER 2018

GlobalGam

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Casino Screens Dilamino Display: quick-release side allows access to internal electronics and easy swapping of panels and cabling

Keeping Equipment Deployed

has a 178-degree wide-view angle and full flat-service mechanical design. It enables faster gaming cabinet development and reduces time to market, along with flexibile color and optional halo lighting, company officials say.

The popularity of video button decks is increasing rapidly. The 13.3-inch Playdeck incorporates opportunities for bespoke cutout and physical button integration.

Ultra-high-definition displays are gaining widespread acceptance in the gaming market, due to increased pixel density over full HD monitors. This allows the graphics in games to be presented with high levels of detail. UHD Monitors with a resolution of 3840x2160 pixels have four times the pixel density of full HD monitors. They work in perfect combination with Quixant’s 4K gaming platforms, such as the QMax-1, QX-50 and Qxi-6000.

Casino Screens, based north of London, manufactures and supplies gaming machine monitors and digital signage. It provides custom metalwork as well as metalwork match for retrofit screens.

One of its highlights is the Dilamino Display, which serves to reduce downtime and allow for on-the-spot servicing and maintenance, according to company reports. The quick-release side allows access to all internal electronics and easy swapping of panels and cabling if there is a failure.

Key product ingredients include a reliable dual-display board, full assembly with custom-pole length, minimal external cable, slim 80 mm design and a bonded glass front for protection inside for 24/7 use.

A new button desk display is being prepared for the fall.

Throughout the world, suppliers seek their niche in the competitive yet profitable environment. Their products target what operators need and what gamblers want.

847-870-7027 ITSGAMES.COM

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NEW GAME REVIEW

by Frank Legato

Dream Fortune Casino Hits Aruze Gaming

T

his is a new game in Aruze’s 999.9 Gold Wheel series, on the tall CubeX Ultimate Cabinet, which features an integral bonus wheel above a 27-inch monitor.

The theme of the five-reel, 50-line game is winning in Vegas, with reel icons including showgirls, a roulette wheel and a pink Cadillac. The base game and bonuses are centered around a “collect” feature, in this case collecting star and wheel symbols.

Three or more “Feature” symbols on an active payline trigger nine free games. During the free games, there are extra top Dream Fortune symbols on all but the first reel. The feature can be retriggered within the free games.

One wheel symbol landing anywhere on the reels triggers the “Collect Feature,” triggering two free spins. If the wheel and star symbols appear in the triggering spin, both symbols are held in position for all free spins. Each new wheel or star symbol appearing during the Collect Feature adds two free spins, and are held in position for all subsequent free spins.

The goal is to collect 15 mixed wheel and star symbols. When 15 of the mixed symbols are collected, it triggers the “Collect Wheel Spin.” The player is awarded one spin of the bonus wheel for every wheel symbol collected. The wheel contains credit awards ranging from 200 to 2,000, a fixed Mini bonus of 2,000 credits, a fixed Minor bonus of 5,000 credits, and two progressives—a Major Jackpot resetting at $500 and a Grand Jackpot resetting at $5,000.

If 15 mixed wheel and star symbols appear in a single primary-game spin, it triggers one spin of the bonus wheel in the “Super x7 Bonus.” The player gets one spin of the wheel, and any credit amount is multiplied by seven, excluding the two progressive jackpots.

Manufacturer: Aruze Gaming Platform: CubeX Ultimate Format: Five-reel, 50-line video slot Denomination: .01 Max Bet: 250, 500 Top Award: Progressive; $5,000 reset Hit Frequency: Approximately 50% Theoretical Hold: 5.95%-14.89%

FuXuan Everi

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his game is designed to maximize the use of the 43-inch vertical monitor of the Empire MPX cabinet. The base game is played out on three stacked reel arrays, each array a three-by-five layout with 25 lines. In an incentive for larger bets, only two of the reel sets are available with the minimum cost-to-cover wager of 60 credits. All three reel arrays are active at a bet of 88 credits or higher.

There is a six-level progressive jackpot, with reset levels of $6.16, $9.68, $19.36, $57.20, $132 and $10,000, the top prize.

Three or more bonus symbols on an active reel on any of the arrays trigger a free-spin bonus.

Free spins feature “Nudge” and “Symbol Save” features.

When a wild symbol lands, it nudges to cover the entire reel with wilds. The wild reel then remains in place for the remainder of the free spins.

The main progressive bonus is called “Jackpot Advance.” When triggered, the screen switches to a field of 20 icons underneath a ladder display of all the progressives.

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Global Gaming Business SEPTEMBER 2018

The player selects from the icons to reveal credit prizes, additional picks or a “Jackpot Advance” symbol. The Jackpot Advance symbol moves the indicators up the progressive ladder. If the player reaches the top of the ladder before the picks run out, it awards the top $10,000 prize.

Manufacturer: Everi Platform: Empire MPX Format: Three stacked five-reel, 25-line video arrays Denomination: .01 Max Bet: 880 Top Award: Progressive; 10,000 reset Hit Frequency: 31.93%-38.21% Theoretical Hold: 3%-15%

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GAMING & HOSPITALITY

EDUCATION • SERIES • 2018 Presented by

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• October 25: Esports & Sports Betting • November 20: The Perils and Possibilities of AML and Payment Processing • December 13: Player Development & Casino Marketing

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NEW GAME REVIEW

Goldfinger Scientific Games

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cientific Games continues its series of Bally slots based on the James Bond films with a game available as a three-reel, nine-line stepper-style slot either on the TwinStar J43 cabinet (pictured), with a 43-inch curved monitor; or the giant-sized TwinStar V75 cabinet, with its massive 75-inch curved monitor. Both versions carry a top wide-area progressive Grand Jackpot on either the Reel Adventures link ($200,000 reset) or the Cash Connection link ($400,000 reset).

The wide-area progressives are at the top of a four-level progressive display, with internal progressives resetting at $15 (Mini), $50 (Minor) and $500 (Major).

The game is based on Goldfinger, the iconic second entry in the Bond franchise of films starring Sean Connery as Agent 007. The film establishes some of the most famous Bond story elements, such as Q’s gadgets, and Agent 007’s Aston Marton car, which are reflected in reel symbols and game features.

In the primary

game, one or more Bonus Wild symbols centered on a payline trigger a feature awarding a random bonus displayed on the symbols. These can include bet multipliers ranging from 150X to 2,500X; the Major, Minor or Mini jackpot; or the Wheel Bonus.

The Wheel Bonus awards one spin of a video wheel including credit prizes ranging from 300 to 4,000 times the bet multiplier, all four of the jackpots, or the Free Games feature. The wide-area Grand Jackpot is only available on the wheel at max bet.

The Free Games feature awards seven free spins for each winning combination including the Bonus Wild symbol.

Manufacturer: Scientific Games Platform: Alpha 3 Format: Three-reel, nine-line video slot Denomination: .01, .02, .05, .10 Max Bet: 400 Top Award: Progressive; $200,000 and $400,000 resets Hit Frequency: 30.55% Theoretical Hold: 10%-14.81%

Toro Gordo AGS

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his game on AGS’ sleek Orion Slant cabinet is the latest in the company’s Xtreme Jackpots progressive link, which links various games to one progressive prize. The link for this game also includes popular games like Da Ji Da Li and Stampede Power.

The base game is in the PowerXStream format, with 243 ways to win on every spin. Wins are registered via adjacent symbols; there are no paylines.

Toro Gordo carries a four-level progressive triggered by a mystery picking event. Randomly when a wild symbol lands on the reels during the base game, the screen will switch to a picking game featuring 12 coins. The player selects until matching three symbols, corresponding to one of the progressive jackpots—a parrot for the Mini resetting at $10, a bird for the Minor reset-

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Global Gaming Business SEPTEMBER 2018

ting at $25, a purple piñata for the Major resetting at $800, or a blue piñata for the top Grand prize, resetting at $10,000.

Candy flies from the piñata once the jackpot is hit in a clever celebration sequence.

The main bonus is a free-spin event in which the player selects the volatility. Three or more adjacent bonus symbols scattered on the reels gives the player a choice of 12 free spins with win multipliers up to 27X, nine free spins with multipliers up to 64X, six free spins with multipliers up to 125X, or a random event in which the computer picks the number of spins and the multiplier.

The free-spin event can be retriggered with bonus symbols on a free game.

Manufacturer: AGS Platform: Orion Slant Format: Five-reel, 243-ways-to-win video slot Denomination: .01 Max Bet: 880 Top Award: Progressive; resets at $10,000 Hit Frequency: Approximately 50% Theoretical Hold: 5.04%-14.08%

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EMERGING LEADERS A Clear Calling Ashley Burnside Deputy Commissioner, Eastern Shawnee Gaming Commission shley Burnside is one of those fortunate souls to have found her career destiny at an early age. The gaming industry pulled her in 13 years ago, and she has never looked back. She benefits from having experience in operations as well as regulatory and independent test lab areas of tribal gaming.

Burnside “fell in love” with the industry immediately, finding it more rewarding than the degree program she was pursuing at the time. She has enjoyed all of her roles in the industry—from snack bar attendant to cashier to shift supervisor—but has found her ultimate calling as a commissioner. “I am definitely a regulator,” she notes. Burnside has developed, executed and continues to conduct training sessions covering electronic gaming machines, licensing and surveillance at many different conferences across the country.

Northeast Oklahoma is a crowded market, where there can be three casinos—all successful—in an eightmile radius. Burnside is lucky enough to have been involved with the opening of four casinos in that market.

She enjoyed the experience so much that she knew her involvement in the industry “was meant to be.”

Her education did not end with a degree from Northeast Oklahoma A&M College. She continues to enjoy learning new aspects of gaming as she strives to be the best possible regulator she can be, by taking advantage of contacts and soaking in as much as she can from training opportunities and conferences such as G2E. In particular, she is keeping abreast of developments in technology—new software, and social and internet gaming—to be prepared for when the day comes to design regulations for new gaming platforms.

Three “of the most intelligent women” in the industry have served as mentors to Burnside: Robin Miller, Jalene Wells and Jodi DiLascio. She keeps in touch with them weekly and appreciates how they took her under their wing.

Burnside is a member of the Eastern Shawnee Tribe and serves as alternate on the tribe’s election board. In her free time, she enjoys spending time with her 2-yearold nephew and being with family.

—Tom Zitt, The Innovation Group

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Global Gaming Business SEPTEMBER 2018

Las Vegas Reborn Adrian Cacuci Senior Director and Treasurer, The Cosmopolitan of Las Vegas drian Cacuci’s link to Las Vegas dates back many years. Growing up in Romania, Cacuci expanded his personal horizon at the age of 16 when he came to the United States as an exchange student. Upon graduating from high school in Kansas, he went back to Romania for college. After just a year, he decided to return to the U.S. and completed his undergraduate and MBA studies at the University of Nevada, Las Vegas. Today, Cacuci has been a Nevadan for over 20 years and is pleased to contribute to the growth of his company, the hospitality industry and the city of Las Vegas.

Cacuci’s first experience in hospitality was during college when he worked as a front desk agent at Treasure Island and was fascinated by the “people business.” Toward the end of his second year as an MBA student, he was offered a financial planning analyst position at Paris Las Vegas, which was followed by an expedited promotion to the senior analyst position. The momentum continued as Cacuci’s career quickly advanced to financing planning and analysis manager at New York-New York before progressing to MGM’s corporate treasury manager involved in financial planning, analysis and treasury functions at both property and corporate levels.

In 2010, with his combined FP&A and treasury expertise, Cacuci was offered the opportunity to join the Cosmopolitan of Las Vegas’ opening team, and has since enjoyed working at the property for the last eight years, where he ensures that the company optimizes current and medium-term liquidity, and makes financial decisions related to investments, merchant processing/payment acceptance, 401(k) plans, stored value cards, and expense reporting and reimbursement.

Cacuci credits much of his success to his mentors—Eric Hession, CFO at Caesars Entertainment Corporation; Dan D’Arrigo, CFO at MGM Resorts International; and William Boasberg, president and COO at Beau Rivage. At the Cosmopolitan, Cacuci is grateful to work with a number of great executives, such as CFO Chelle Adams and President Bill McBeath.

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Spending countless hours reviewing budgets, strategic plans, cash flow statements and ROI projects, and listening to his mentors share their experience and perspectives on finance and gaming, really boosted Cacuci’s professional development and enhanced his skills.

“I have learned so many things from all of these great leaders, and it would be difficult to just pick one that influenced me most,” says Cacuci. “I will always be grateful to them for giving me an opportunity to develop my leadership skills, and for how they inspired and helped me develop in my career.”

From a treasury and cash management perspective, Cacuci sees the gaming industry increasing its focus on AML and KYC procedures, based on his close work with compliance. On the hospitality industry front, one of the main focus areas he sees in the near future is to support alternative payment methods for guests, including Alipay and WeChat Pay. Cryptocurrency also seems to offer interesting applications, although it may be a little distant from gaming in the near future. While cash may never completely go away in the gaming industry, Cacuci sees a lot of growth in electronic payment methods going beyond traditional debit and credit cards, such as Apple Pay, Google Pay and Samsung Pay. Cacuci considers himself a “part-time treasurer, part-time analyst, part-time accountant, but a full-time dad.” Aligning with his career development, he also aims to raise his children as kind and hard-working individuals. His family loves traveling, and they have visited many countries to experience different cultures, offering his children a childhood full of many memorable experiences, which Cacuci believes will in turn help them become more informed and well-rounded adults.

—Michael Zhu, The Innovation Group

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CUTTING EDGE

by Frank Legato

Protecting Apparel Investments Product: Wardrobe Rooms Manufacturer: Cintas

perators can give employees—and the bottom line— the red-carpet treatment with a Cintas Wardrobe Room. With accurate inventory tracking and detailed reports, Cintas Uniform Rooms can decrease the risk of lost or unreturned garments to reduce cost. Improved forecasting, software maximization, advanced apparel knowledge and tailoring allow Cintas Wardrobe Rooms to meet the highest industry standards and drive innovation.

An integral part of associates’ daily routine and a property’s success, Cintas Wardrobe Rooms can have a positive impact on an operator team’s image and bottom line. Between tailoring garments, extending garment life and tracking back stock, the Cintas Wardrobe Room can seamlessly manage apparel inventory while making sure employees look and feel their best. Operators can choose from a variety of flexible solutions to meet unique requirements, including: Fully staffed: A Cintas Wardrobe Room manager oversees a team of Cintas professionals who run the room. In addition to inventory reporting,

O

on-site alterations and software utilization, Cintas will also provide meticulous hiring over a three- to five-year term.

Managed: A Cintas manager with deep knowledge of the operator’s Wardrobe Room operation manages the room, overseeing the property’s staff over a three- to five-year term.

Consulting: A Cintas specialist consults with the operator’s team to drive efficiencies within the Wardrobe Room by providing weekly reports and process analysis, quarterly visits, training assistance and more over a one-year term.

For more information on Wardrobe Room solutions, call 800UNIFORM or visit cintas.com.

Online Sports Betting Solution Product: FABISport Manufacturer: FABICash

ABICash, an award-winning supplier of reliable cash-access and Title 31 AML compliance services to the casino industry, has partnered with Secure Trading, the No. 1 online gateway in the world, to jointly develop FABISport, an online sports betting solution for casinos.

FABISport features a MasterCardbranded, prepaid card for players to fund both their casino play and online sports betting wallets. Secure Trading will be providing its high-performance, end-to-end funding management and reconciliation solution, which is able to improve security and player engagement, reduce costs, generate revenue and retain customers.

FABISport reduces the need for cash in the casino at both the cage and kiosk, providing improved security for the casino and its players. With a cashless wagering system at the slots, funds can be moved off of the prepaid card onto the cashless wagering account in the slot machine. The player can also use

F

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the prepaid card for purchasing chips at a table game. The pit boss uses a handheld POS device with FABI’s app for moving funds off of the card. Notably, the FABITrack Title 31 and AML Compliance reporting application integrates with FABISport, tracking player activity for online and on-premise play.

FABISport not only presents an additional revenue source for the casino, but it also creates customer loyalty.

Winnings are immediately transferred to the prepaid account and players can remain in the game even when they leave the casino. The MasterCard prepaid card can be loaded at many locations and used for dining, retail, etc., including cash withdrawals at ATMs. In addition, the prepaid card allows for funding both the casino wallet and online sports betting wallet.

For more information, visit FABICash at Booth 1820 at G2E 2018 or visit fabicash.com.

CONNECTING INDUSTRY LEADERS AT THE HEART OF GAMING IT ALL STARTS HERE Set yourself up for success at Global Gaming Expo (G2E) – the largest gathering of global, commercial, and tribal gaming professionals in the world. Take advantage of new educational content that is fast-paced and actionable and experience first-hand the new products and innovative technologies showcased on the expo floor. G2E has everything you need for your casino floor and across your entire operation – from traditional casino fare to non-gaming amenities and digital products - G2E is where your business growth is accelerated.

2018

REGISTER TODAY AT: GLOBALGAMINGEXPO.COM EDUCATION OCTOBER 8-11 EXPO HALL OCTOBER 9-11 SANDS EXPO, LAS VEGAS

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FRANKLY SPEAKING

by Frank Legato

Automation Run Amok

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with a tiger in the bathroom of your suite.

OK, there’s always that danger. But I still like it.

Automation, though, does seem to be getting out of hand. At California’s Pechanga Resort, they’ve got a security robot named “Buddy” that cruises around the hotel lobby, keeping an eye on things. The robot— think six-foot R2D2, as opposed to the Jetsons’ maid—continuously captures 360-degree HD video and photos, scanning for suspicious activity, unattended packages, and even coffee spills.

The rumor is that he’s named after Buddy Frank, who was formerly the longtime slot operations VP at Pechanga. (Buddy, my pal and fellow slot guru, doesn’t really like the comparison, since the robot has a smooth cranium and Buddy, like myself, is, let’s say, follically challenged.)

The only thing I don’t like about Buddy the Robot is that he doesn’t interact with the guests. Not so much as a “Danger, Will Robinson” or “Jane, stop this crazy thing!” (More references you won’t get unless you’re old like me.) He just looks at you with that suspicious robot eye.

I wonder what he’d do if I put my fist through the monitor of a slot, as is now tradition in some New York casinos. Laser death ray, maybe? Would mechanical arms come out and wrestle me to the ground?

I miss the old days, when actual humans would greet you in a friendly manner, take you into the back room and break your knuckles with a hammer.

Ah, good times.

With casinos coming to Japan now, get ready for an overload of automation.

There’s already a Japanese amusement park operator planning to replace a third of his human workers with robots. I read that Japan even has a chain of hotels run almost entirely by robots.

Do you think you could program a robot host to talk like DeNiro? Something to think about.

At least Tim Arnold isn’t into automation. The 62-year-old Las Vegas arcade operator is opening up a new Pinball Hall of Fame on the south Strip—a 27,000-square-foot facility on the east side of Las Vegas Boulevard south of Russell Road that will have more than 1,000 classic pinball machines.

Now, that’s my idea of old-school fun.

I sure hope he doesn’t have robots running the place.

VIC TOR RINAL DO

A

s I mentioned a couple of months ago in this space, after 34 years writing about this industry, I’m pretty much a crotchety old man trying to keep up with lightning-fast changes in technology.

Yes, I’m definitely a geezer, since I actually remember when playing a slot machine meant inserting these little metal discs into a slot and pulling a handle—yes, actually, manually pulling a metal thing with a ball on the end.

Now, I’ve got nothing against automation. Goodness knows, I’m glad we don’t have to do all that work to play slot machines anymore. I’m happy, for instance, that we don’t have to go through all the misery that sometimes ensued when you wanted to cash out the coins from your credit meter, then sit and wait for a slot attendant when the hopper went empty—which for me, always happened at the very worst time. The dreaded “Hopper Empty: Call Attendant” message always seemed to send an instant signal to my bladder, and well, you can take it from there.

Yes, kids, we used to wait for coins to come out of the machine, and if the coins ran out, we had to wait for a slot attendant, who was invariably 90 years old, to doddle across the floor lugging a sack of coins, dump it into the machine’s hopper, and scrawl his name on more paperwork than most mortgages entail.

It didn’t matter if you had to go to the bathroom, had a dinner reservation, had to catch a plane, or whatever. If your payout stopped with money on the meter, you waited. Even if you were waiting for a buck and a half, and you could time the attendant with a calendar, you sat there.

It’s in a gambler’s DNA, you know. You don’t leave chips on the table, or coins in the machine. Or count your money sittin’ at the table. (Hey, that would make a good song.) In short, thank God for TITO. And I’m not talking about the late Yugoslavian dictator. (As Roger Gros noted in his Agenda column in a similar vein, look it up, kids.)

I also love the automated drink requests in some of the slot management systems these days. As soon as the server brings you one drink, you order the next, and before you know it, you wake up the next day

AMERICAN GAMING ASSOCIATION’S

INNOVATION LAB AT G2E

AGA’s Innovation Lab at G2E is a hub that encourages networking among attendees and informs innovation relevant to the gaming-entertainment industry. Each day offers a dedicated theme outlined below.

Fifteen minute, TED-talk-style sessions will address:

TUESDAY

Big Data & Analytics

WEDNESDAY

New Terrain & Emerging Markets

THURSDAY

Students and Startups

Visit the Innovation Lab at booth #5833

Be sure to meet our team at the AGA Booth near registration. Learn about us at www.americangaming.org

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GOODS&SERVICES AGA UPDATES RESPONSIBLE GAMING CODE OF CONDUCT

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he American Gaming Association debuted its updated Code of Conduct for Responsible Gaming to include sports betting in response to the U.S. Supreme Court lifting the federal ban in May. The updated code states rules for advertising and marketing on TV, online and in other media, plus efforts to prevent underage gaming, also apply to sports betting. The rules also urge casinos to Congresswoman Dina make “diligent efforts” to stop minors Titus delivered the opening speech at the from gambling or Las Vegas responsible wagering on sports. gaming event And it spells out that gambling and sports betting advertising will not “depart from contemporary standards of good taste” or feature images that may appeal to minors.

AGA Senior Vice President of Public Affairs Sara Slane said, “As gaming enters a new landscape, our industry is prepared to be a proactive partner in how we approach responsible gaming, highlighted today with our updated Code of Conduct that spells out obligations to our patrons, employees and communities. Every day, gaming industry leaders are working with manufacturers, thought leaders, educators and property owners to proactively address problem gambling. Together, we are maximizing our investment to promote responsible gaming and innovating how we approach the issue.”

The code changes were announced during the industry’s Responsible Gaming Week, celebrating its 21st anniversary. The week annually showcases the industry’s year-round dedication to responsible gaming programs and its ongoing commitment to promoting responsible gaming. Gaming operators and manufacturers across the U.S. use the week to sponsor their own responsible gaming educational activities.

Among other activities, the AGA presented two panel discussions on the evolution of responsible gaming, in Las Vegas and Boston. At the University of Nevada, Las Vegas, panelists included representatives from UNLV’s International Gaming Institute, BMM Testlabs, Caesars Entertainment and the Association of Gaming Equip-

54

ment Manufacturers. U.S. Rep. Dina Titus of Nevada delivered the keynote address. Boston panelists featured representatives from the Massachusetts Gaming Commission, the National Center for Responsible Gaming, MGM Resorts International, Penn National Gaming and the National Council on Problem Gambling.

Specifically, the updated AGA Code of Conduct for Responsible Gaming requires that members make a voluntary pledge to: have an established selfexclusion policy; prevent underage gambling to the best of their ability; communicate the legal gambling age in marketing materials; and place marketing materials where underage people are unlikely to see it.

Slane said the AGA already has started working with sports leagues and broadcast companies about industry responsibilities.

AGA Vice President of Strategic Communications Casey Clark noted, “The first priority for successful sports betting markets in the United States is to empower state legislatures and sovereign tribal governments. These entities have proven to be effective regulators of gaming for decades. Federal action to regulate sports betting failed for the past 26 years.

The decision by the Supreme Court now makes it possible for states and sovereign tribal nations to give Americans what they want: an open and transparent market for sports betting, while also giving specific constituencies opportunities to decide what works best for them.”

G2E PRESENTS FIRST SPORTS BETTING SYMPOSIUM

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lobal Gaming Expo 2018’s Sports Betting Symposium will be the first ever presented at the premier international gaming trade show, set for October 8-11 in Las Vegas. Sara Slane, senior vice president of public affairs for G2E sponsor American Gaming Association, said, “As states and sovereign tribal nations consider whether or not to enact legalized sports betting, the Sports Betting Symposium at G2E will offer the world’s foremost Kenny Gersh, execuexperts, business leaders and tive vice president of gaming and new busioperational solutions to ness ventures for Major build a thriving legal market League Baseball, will in the United States.” participate on a G2E Sessions will cover the sports betting panel business and legislative aspects of sports betting. In addition, participants will receive a guided tour of the G2E expo hall to meet the top suppliers of sports betting technologies. The number of sports betting exhibitors has more than doubled since the 2017 event.

Symposium topics will include:

Tuesday, October 9

ARISTOCRAT, BOYD ENTER STRATEGIC SYSTEMS PARTNERSHIP

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as Vegas-based slot supplier Aristocrat Technologies, Inc. announced it has been selected as the official casino management systems partner of Boyd Gaming Corporation, one of the largest and most established casino operators in the United States.

Under terms of the agreement, Boyd will utilize Aristocrat’s Oasis 360 system as the casino management solution at its casino properties nationwide, allowing Boyd Gaming to unify all of its properties under B Connected, its player loyalty program. Boyd Gaming currently operates 24 casino properties and more than 31,000 slot machines across the U.S. Further, Aristocrat and Boyd Gaming will jointly develop innovative new gaming features at Boyd Gaming properties, including property-wide bonus games and jackpots.

The system innovations are in addition to the top-performing Aristocrat games currently in operation at Boyd Gaming properties nationwide, including Buffalo, Game of Thrones, Lightning Link and the Walking Dead II.

Global Gaming Business SEPTEMBER 2018

10:15 a.m. – 11:15 a.m.

SCOTUS Decision: What the Ruling Actually Said and What It Means – Speakers include

Sidley Austin LLP Supreme Court and appellate law expert Jonathan Cohn, who previously served as U.S. deputy assistant attorney general and clerked on the U.S. Supreme Court for Justice Clarence Thomas, along with the AGA’s Sara Slane.

1:15 p.m. – 2:15 p.m.

How States and Tribes Are Preparing for Legal Sports Betting – Speakers include

Matthew Morgan, director of gaming affairs for the Chickasaw Nation, who also previously served two terms as the gaming commissioner, and David Rebuck, director of the New Jersey Division of Gaming Enforcement, who has led the state into a leadership position in iGaming, and plans to do the same with sports betting. The session will be moderated by AGA Vice President of State Affairs Mandy Hagan.

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AVAILABLE Wednesday, October 10 10:15 a.m. – 11:15 a.m.

The Business of Sports Betting – Following

the morning keynote, Scott Van Pelt, anchor of ESPN’s SportsCenter, will moderate a session that includes diverse viewpoints on the business of sports betting from panelists Kenny Gersh, executive vice president of gaming and new business ventures for Major League Baseball; Stephen Master, managing director of Americas, Nielsen Sports and commercial director of Nielsen Esports; and AGA’s Slane.

1:15 p.m. – 2:15 p.m.

Finding the Right Partner: An Interactive Exhibit Hall Tour – Exhibit participants will have

an opportunity to experience an exclusive tour of the expo hall and meet relevant partners that will demonstrate their gaming technologies. The guided tour will be led by Coloring Up Limited Director Alen Lang, along with AGA Senior Director of State Policy Will Green and Senior Member Services Director Jonathan Michaels.

FOOTBALL.COM BASKETBALL.COM TRIVIA.COM ŕśœŕś?ŕś? ŕś•ŕś—ŕś›ŕśœ ŕś˜ŕś—ŕś&#x;ŕś?ඹථŕś?ŕś” ŕś›ŕś˜ŕś—ŕśšŕśœŕś› ŕśŒŕś—ŕś•ŕś‰ŕś‘ŕś–ŕś› ŕś—ŕś– ŕśœŕś?ŕś? ŕś˜ŕś”ŕś‰ŕś–ŕś?ŕśœ!

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(PDLO -HII)#7HQ [ FRP

Thursday, October 11 10:15 a.m. – 11:15 a.m.

How Sports Betting Works in a Regulated Market – Learn from the sports betting experi-

ences of mature, regulated markets across the globe.

Speakers include Khalid Ali, secretary general of ESSA (Sports Betting Integrity Association); A.G. Burnett, partner at McDonald Carano and former chairman of the Nevada Gaming Control Board; and Chris Grove, gambling industry analyst and managing director at Eilers & Krejcik Gaming.

Jennifer Roberts, associate director of the International Center for Gaming Regulation and adjunct professor at the William S. Boyd School of Law at the University of Nevada, Las Vegas, will moderate this session.

1:15 p.m. – 2:15 p.m.

U.S. Sports Betting: Lessons Learned from Early Adopters – Speakers include Joe Asher,

CEO of William Hill US; Richard Carter, CEO of SBTech; and Charles Cohen, vice president of mobile, PlaySpot and North America sports betting at IGT. The moderator will be AGA’s Green.

For more information or to subscribe to the database or monthly report contact Ashley Diem at ADiem@FantiniResearch.com or call +1-302-730-3793 - www.FantiniResearch.com SEPTEMBER 2018 www.ggbmagazine.com

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See InfoGenesis Flex @ G2E Booth 3800 ®

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PEOPLE GRONAU STEPS DOWN AT GPI

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able-game supplier Gaming Partners International announced that Gregory Gronau is resigning as CEO of the company efGreg Gronau fective September 21, at which time he also will relinquish his other roles with the company, including president, director, treasurer and secretary.

According to the company’s announcement, the resignation was “for personal reasons, and not a result of any disagreement with the company or its management.”

Alan Thieffry, the company’s chief financial officer and board chairman, will fill the CEO and other roles while the company searches for a successor.

Gronau, 59, has been CEO of the company since 2009, and was appointed secretary and treasurer in 2014. Prior to joining GPI, he was vice president of operations of Shuffle Master from 2002 to 2006 and, subsequently, CEO and president of Cadillac Jack, Inc. from January 2006 to March 2008. While with Shuffle Master, he was responsible for improvements in all of the company’s manufacturing operations, and was director of virtually all of its acquisitions.

Gronau will remain as a consultant to the company until the end of the year.

SAN MANUEL CASINO INCREASES LEADERSHIP TEAM

F

ollowing the recent groundbreaking of its expansion, San Manuel Casino in Southern California announced that Peter Arceo has been promoted to chief operating officer, and that Rikki Tanenbaum will Peter Arceo succeed him as chief marketing officer.

San Manuel Casino General Manager Loren Gill notes that Tanenbaum has a strong record of leading senior marketing teams at the casino.

Arceo has worked for San Manuel since August 2015. He worked on the casino’s “All Thrill” advertising campaign, expanding it and making guest services a top priority.

He will provide support for day-to-day management and help develop talent while increasing the quality of the guest experience. He will help

lead the casino as it vies for its place among the top casinos in the region.

Arceo came to San Manuel from the Salt River Pima-Maricopa Indian Community’s Casino Arizona and Talking Stick Resort in Scottsdale, where he was vice president/chief marketing officer. He has a bachelor of science in hotel administration from the University of Nevada, Las Vegas and an MBA from the University of Southern California.

EILERS & KREJCIK EXPANDS SPORTS BETTING STAFF

T

he Santa Ana, Californiabased gaming firm of Eilers & Krejcik Gaming has expanded its reach into the sports wagering area by hiring Chris Krafcik as managing director for political and regulatory affairs.

Chris Krajcik His expertise will enable the firm to provide market research in the sports betting field. Krafcik will also author the company’s U.S. Sports Betting Monitor, which provides information and insights on the burgeoning industry.

Krafcik was previously U.S. research director for GamblingCompliance. His expertise is in iGaming, daily fantasy sports and sports betting. He writes regular syndicated research reports on policy and regulatory development in iGaming and sports betting, and occasionally provides expert testimony to state lawmakers.

MADIGAN NAMED PARAGON GENERAL MANAGER

T

he Tunica-Biloxi Tribe of Louisiana recently named Jody Madigan as general manager at Paragon Casino Resort in Marksville, Louisiana. Previously, Madigan was corporate vice president of strategy and business development with Jody Madigan Seneca Gaming in Niagara Falls, New York. For more than 20 years, Madigan gained experience in the gaming industry as a general manager, assistant general manager and chief financial officer at several casino properties.

Tunica-Biloxi Chairman Marshall Pierite said, “Mr. Madigan comes to us with a fine record of achievement. His background in this region, along with his ability to provide leadership, will help Paragon improve across the board while maintaining

our reputation for excellence. He will be welcomed by our team members and guests.”

Madigan stated, “This is an outstanding facility with a fine record of customer service and wonderful entertainment.”

CABOT NAMED SENIOR ADVISOR TO TALISMAN GROUP

T

alisman Group, creator of EZ Baccarat, announced that Anthony Cabot has joined the company as senior advisor. EZ Baccarat is one of the leading table game brands in the world.

Cabot’s role will be to Tony Cabot help guide the strategic direction of the company and help expand the EZ Baccarat franchise into additional revenue channels, including online gaming, live dealer, electronic table games, live multi-game and stadium seating terminals worldwide.

“I’ve had a professional relationship with Talisman Group for over 20 years, during which I was instrumental in helping EZ Baccarat grow into a powerful table game brand,” Cabot said. “Now that EZ Baccarat is making headway into digital gaming, my role as senior advisor will allow me to put years of digital research and empirical knowledge in pursuit of this challenging new opportunity.”

GGB

September 2018 Index of Advertisers

AGA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .53 AGEM . . . . . . . . . . . . . . . . . . . . . . . . . . . . .47 Agilysys . . . . . . . . . . . . . . . . . . . . . . . . . . .56 AGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 Atrient . . . . . . . . . . . . . . . . . . . . . . . . . . . .19 CasinoTrac/TableTrac . . . . . . . . . . . . . . . . .49 Everi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 FABICash . . . . . . . . . . . . . . . . . . . . . . . . . .41 Fantini . . . . . . . . . . . . . . . . . . . . . . . . . . . .55 F & F Capital Group LLC . . . . . . . . . . . . . . .55 G2E . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .51 Galaxy Gaming . . . . . . . . . . . . . . . . . . . . . .37 Gaming Support . . . . . . . . . . . . . . . . . . . . .33 GLI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29 GreenbergTraurig . . . . . . . . . . . . . . . . . . . .21 IGT . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7, 59 Incredible Technologies . . . . . . . . . . . . . . .43 Interblock . . . . . . . . . . . . . . . . . . . . . . . . . .11 Konami Gaming . . . . . . . . . . . . . .Back Cover Merkur Gaming . . . . . . . . . . . . . . . . . . . . .31 Osage . . . . . . . . . . . . . . . . . . . . . . . . . . . . .37 RPM Advertising . . . . . . . . . . . . . . . . . . . .12 Scientific Games . . . . . . . . . . . . . . . . . . .9, 25 Subway Franchise . . . . . . . . . . . . . . . . . . . .39 Sysco . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23 TCSJohnHuxley . . . . . . . . . . . . . . . . . . . . . .2 UNLV GHES . . . . . . . . . . . . . . . . . . . . . . . .45 VizExplorer . . . . . . . . . . . . . . . . . . . . . . . . .13

SEPTEMBER 2018 www.ggbmagazine.com

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CASINO COMMUNICATIONS

Q

&A

Ryan Eller

T

he opening of Resorts World Catskills in February was the conclusion of a quest by Empire Resorts to secure a gaming license in the Catskills. While the company operates a VLT slot parlor at nearby Monticello racetrack, the company was committed to building a casino on the site of the fabled Concorde Hotel, one of the great venues during the height of the Catskills popularity in the middle of the 20th century. Ryan Eller spent the last two years helping to win the license and build the $900 million property. He spoke with GGB Publisher Roger Gros in his offices at RWC in July.

GGB: What was the key to winning one of the four licenses that were available in the Northern Tier of New York?

Eller: Empire Resorts has sought for quite some

time a casino license in the Catskills, which has a rich history in the hospitality industry. This was a key part of our strategy to bring back that industry and make this hotel an anchor for hospitality in the region, and use casino gaming as a way to do it. Ultimately, where we prevailed in this process was to adhere to the tenets of the state’s desire: economic development, job creation and community involvement. They were looking for the greatest impact on the community that a casino license would bring to the state of New York. Our proposal was one that would truly transform the industry for the area, bring a massive amount of investment and visitation, and a great deal of job creation, to a county and region in New York that really needed it. And of course, the tax revenues that were coupled with that are a boon for the state, as well.

The hotel and casino are beautiful, but the vision was much larger than that, wasn’t it?

Certainly. The entire development is envisioned as an integrated resort, one that offers experiences that are very diverse and attract a wide variety of people who are seeking a wide variety of 58

President and CEO, Empire Resorts

experiences. But it’s anchored by casino gaming, which we think is a phenomenal casino product from the casual slot player to the most discerning VIP table game player.

We’ve got 1,700 acres on our resort campus.

And just within phase one of our hotel plans, by the middle of next year, we’ll have three different hotels, a championship golf course, and a family water park and resort. The casino resort is already complete with all suites, at least 600 square feet each, built to five-star standards.

That includes private plunge pools and a private balcony off the master bedroom. There are some truly unique options for guests to enjoy, unmatched in this area.

We provide a one-stop destination option for entertainment, recreation and fun, be it a business traveler, a tour-and-travel customer or a casino player.

You ran Resorts World New York (RWNY) at Aqueduct racetrack before coming up here.

Compare the two experiences and the ownership structure.

We’re quite different up here. For one, Empire Resorts is a public company, separate from the company that owns RWNY—they are two separate, independent public companies. But the chairman of the multibillion-dollar company that owns RWNY is KT Lim, who is our primary shareholder. It gives us access to a great deal of resources, which has enabled us to make this significant investment in this region.

We are not immediately adjacent to the core population like you are with Queens in RWNY; that is truly pure gaming. Now, in the future, they could expand on that by bringing in hotels and meeting space, adding table games and more entertainment options. At RWC, we’re more remote, and as a result we need that critical mass to define this as a destination integrated resort. Therefore, this significant investment with a full casino—not just the electronic games you see at RWNY—that you would find in Las

Global Gaming Business SEPTEMBER 2018

Vegas or Atlantic City is crucial to make this a success. That’s why we and our primary shareholder are so excited about this project.

How has your experience been in attracting these new customers?

In the competitive Northeast market, being able to drive this traffic to a new casino with virtually no player database, and touching the player for the very first time, is challenging for any property opening up in this market. What we’ve seen is that the people who come here absolutely enjoy their experience. We have what we consider a great portfolio of amenities to offer a great experience.

There was some disappointment in your early results. Was that because not everything was open immediately?

Yes. But now, most everything in the casino and the hotel is open. So we’re now rolling out our full marketing program. Building a great database takes time. And as a destination, we are competing for the drive-in market, and give them a great experience to develop a database that will be sustainable. Over time, we measure our success by not only how many people come to visit, but also how likely it is that they will return. We are getting greater traction coupled with the further development of this as a destination and to build a brand that people recognize and want to return to time and time again. And we are the closest luxury casino resort to Manhattan, so that provides us a competitive advantage as well.

What about sports betting here?

We are confident that the New York regulators and legislators will make the decisions to allow us to offer this at RWC. We believe the excitement it will bring and the ability to offer it as an amenity will make a big difference not only for our facility but all four upstate casinos. We’ll be making some important announcements over the next few months about partnerships and efforts to bring sports betting to our casino.

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