Global Gaming Business, July 2021

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ggB Global Gaming Business Magazine

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CONTENTS

Vol. 20 • No. 7

july

Global Gaming Business Magazine

18 COVER STORY

COLUMNS

Game Power, People Power

10 AGA High Wire Act RaShawn Mitchell

Gaming supplier AGS is emerging from the pandemic stronger than ever, thanks to a knack for great games and technology, and one of the most enviable teams in the business leading each of its three divisions.

12 Fantini’s Finance Under Pressure Frank Fantini

36 Making My Point Do You Really Know Why?

By Frank Legato

Roger Snow

On the Cover (L-R): AGS executives John Hemberger, senior vice president of table products, and Mark DeDeaux, senior vice president of slot products

DEPARTMENTS

FEATURES

4

The Agenda

As more and more casinos seek to offer a cashless, contactless option for casino play, system companies are ready to oblige with new technology.

6

By the Numbers

8

5 Questions

By Dave Bontempo

13 AGEM

14 The M&A Game

38 The Digital Wallet

The emergence of special purpose acquisition companies and real estate investment trusts have added fuel to a wave of mergers and acquisitions in gaming.

By Brendan D. Bussmann

24 Routes Rising Distributed gaming is one of the areas of gaming expansion in several states, as traditional slot routes compete with emerging unregulated “skill games.”

42 Emerging Leaders With San Manuel’s Brad Egnor, Eclipse Gaming Systems’ Steven Slotwinski, and Stats Perform’s Robert Baldassarre

44 Frankly Speaking

By Bill Sokolic

28 The ETG Bounce The explosive growth of electronic table games in stadium setups was helped by the Covid-19 pandemic, but most agree that ETGs are here to stay.

By Marjorie Preston

32 Engaging the Customer Customer acquisition means nothing without a consistent program of customer engagement to assure your property retains those loyal patrons.

46 New Game Review 48 Cutting Edge 50 Goods & Services 53 People 54 Casino Communications With Sequoyah Simermeyer, Chairman, National Indian Gaming Commission

By Julia Carcamo JULY 2021 www.ggbmagazine.com

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THE AGENDA

Are We Doing It Wrong?

By Roger Gros, Publisher

O

n Election Day 1976, the people of Atlantic City poured out into the streets to celebrate the legalization of casino gaming, which was supposed to revive the fortunes of this declining resort town. The message had been that there would be a job for everyone, more tourists and tax money to spruce up the frayed edges of the Boardwalk. It was the first time gaming had been legalized outside of Nevada, and it was the first time casino gaming was supposed to revive a fading resort economy.

Well, now we know that this effort was a dismal failure. Yes, millions of people visited Atlantic City, but they were largely contained to the big-box casinos that lined the Boardwalk and later populated the Marina district. Owners of the small businesses that were expected to benefit from these tourists were bitterly disappointed. The hotels that backed the referendum were sold by their owners to large casino companies that cared little about the historic nature of the buildings or the community.

Outside of increased real estate taxes, the city received no compensation for hosting these casinos, providing security for visitors or the negative impacts of gaming on the community. Today, even the real estate taxes have recently been mitigated.

Casinos in Atlantic City now pay a PILOT fee (payments in lieu of taxes), which is good for the casinos but bad for the city.

Several other jurisdictions have tried to use casinos to revive their tourism industries, with varying levels of success. But the one consistent element throughout all these efforts is that the locals don’t really benefit from the introduction of casinos, with the possible exception of the landowners who sell out to the large and largely uncaring casino companies.

I recently visited Hot Springs, Arkansas, a former resort powerhouse that combined the natural wonders of the area (the natural hot springs) with the “sin” industries of gambling, alcohol and sex to attract tourists. The visit was inspired by one of the best books I’ve read in the past year, The Vapors: A Southern Family, the New York Mob, and the Rise and Fall of Hot Springs, America’s Forgotten Capital of Vice, by Dan Hill. It’s a fascinating tale of the quasilegal gambling industry in the city and the opportunity it had but squandered to outshine the young gambling mecca of Las Vegas during the 1940s.

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Eventually, however, Arkansas legalized gambling, and now hosts three active casinos with another one planned. Two racetracks were automatically granted casinos, Southland in West Memphis and Oaklawn in Hot Springs.

So what has gambling done for Hot Springs?

Not much, if my quick visit is any indication. While Oaklawn is a historic racetrack with a nice casino, it’s just like the big boxes you used to see in Atlantic City. The one difference is that the original track owners are still in place, so they’ve figured out how to profit without selling out.

But tacked onto the end of the racetrack, along with acres of surface parking, players can enter a modern casino with all the top games and tables, without sniffing the historic part of the city. A small hotel and a few decent restaurants keep them inside.

I was there on a weeknight, so I can’t really judge how much business they do. There weren’t that many customers—possibly because the horses weren’t running that night. But then again, I’ve never been to a racino where horse racing actually drove casino players.

There are some wonderful old buildings in Hot Springs, but most of them are vacant despite their unique architecture. The venerable Arlington Hotel, what used the be the center of the city’s culture, is still open, but it’s fraying around the edges. It reminds me of the old glorious hotels in Atlantic City that fell to the wrecking ball to make way for the glass-box casinos.

With the growth of distributed gaming today, what if we had taken a similar model and allowed small to medium-sized businesses to get a piece of the action? Maybe a large gaming company could operate the smaller casinos for a big piece of the revenue, and have enough left over to renovate these historic buildings.

Increased tourism is still a big reason why jurisdictions legalize gaming. So why not integrate it within the community and highlight the things that make the jurisdiction attractive to begin with? In Hot Springs, there was a series of casinos along Central Avenue in the downtown part of the city in the ’40s and ’50s across from the bathhouses that housed the springs. By reproducing that era with modern conveniences and regulatory protections, the city would be booming again, instead of crumbling.

It’s worth a shot.

Vol. 20 • No. 7 • JULY 2021 Roger Gros, Publisher | rgros@ggbmagazine.com twitter: @GlobalGamingBiz Frank Legato, Editor | flegato@ggbmagazine.com twitter: @FranklySpeakn Marjorie Preston, Managing Editor mpreston@ggbmagazine.com Monica Cooley, Art Director mcooley@ggbmagazine.com Terri Brady, Sales & Marketing Director tbrady@ggbmagazine.com Becky Kingman-Gros, Chief Operating Officer bkingros@ggbmagazine.com Lisa Johnson, Communications Advisor lisa@lisajohnsoncommunications.com twitter: @LisaJohnsonPR Columnists Frank Fantini | RaShawn Mitchell | Roger Snow Contributing Editors Dave Bontempo twitter: @bontempomedia Brendan D. Bussmann Julia Carcamo | Krista McPherson Bill Sokolic twitter: @downbeachfilm __________________

EDITORIAL ADVISORY BOARD Rino Armeni, President, Armeni Enterprises

•

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

• Julie Brinkerhoff-Jacobs, President, Lifescapes International

• Nicholas Casiello Jr., Shareholder, Fox Rothschild

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

• Dean Macomber, President, Macomber International, Inc.

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

• Jim Rafferty, President, Rafferty & Associates

• Thomas Reilly, Vice President Systems Sales, Scientific Games

• Michael Soll, President, The Innovation Group

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

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

• Roy Student, President, Applied Management Strategies

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

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

Official Publication

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BY THE

NUMBERS

STATe of DeSpAiR T

Annual U.S. Commercial Gaming Revenue 2008 to 2020

he annual “State of the States” report from the American Gaming Association reflected what was the worst year in the history of the legal commercial gaming industry. The effects of the pandemic hit the industry hard in every jurisdiction in the U.S. From only a 4.5 percent decline in South Dakota, where casinos reopened in May, to a huge drop of almost 80 percent in New Mexico, where the legal racinos closed in March and didn’t reopen until nearly the end of the year, every state was devastated by the effects of the lockdowns. Gross gaming revenues dropped for the first time since 2014, a massive 31 percent lower than 2019. The pandemic also shuffled the most popular gaming destinations (defined as the most gross gaming revenues) more than normally. While the Las Vegas Strip and Atlantic City remain one-two, Chicagoland dropped a place to four, no doubt defined by the extensive shutdown of Illinois casinos. Other jurisdictions like New York City, Detroit and the Poconos dropped multiple places, most likely attributable to draconian lockdowns in those regions.

But all was not doom and gloom in the 2020 State of the States report. In his introductory letter in the report, AGA President Bill Miller looked toward the future.

“Although 2020 presented a tremendous challenge and many headwinds remain, I’m optimistic about gaming’s Top 20 U.S. Commercial Casino Markets 2020 future,” Miller wrote. “States around the country expanded access to our products in 2020 with voters and legislatures legalizing sports betting in five states and authorizing commercial casino properties in two new states. Beyond geographic expansion, we’re an industry in a constant state of reinvention, and many of you are already moving to adapt to new consumer trends around payment preferences and the casino experience.”

In addition to the revenue numbers, the State of the States report includes an extensive review of the gaming industries in every state where commercial gaming is legal, including regulation, taxes and fees, market performance, gaming tax distribution and the competitive landscape. It’s an invaluable tool for anyone looking for solid, upto-date information on the U.S. gaming industry. To download a copy of the report, visit AmericanGaming.org.

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Commercial Casino Gaming Consumer Spend By State 2019 vs. 2020

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NUTSHELL

“They

5

Questions Art Manteris

Former Director, Sports Betting, Station Casinos

T

he legalization of sports betting in the U.S. following the repeal of the Professional and Amateur Sports Protection Act in 2018 brought many new players into the game. But it also focused attention on people who have been involved in U.S. sports betting in the one legal jurisdiction—Nevada.

Art Manteris arrived in Las Vegas in the late 1970s, working at such legendary books as the Stardust, Caesars, Westgate (formerly the Las Vegas Hilton) and finally 20 years with Station Casinos. Manteris is a contrarian when it comes to sports betting and understands the realities of operations. Even though he’s retired from the casinos, Manteris plans to stay engaged in the industry. He spoke with GGB Publisher Roger Gros in May at the GGB offices in Boulder City, Nevada. To hear a full podcast of this interview, visit GGBMagazine.com.

1 2 3 4 5

GGB: Congratulations on your recent retirement from Station Casinos. How is your life going to change?

Art Manteris: My life has already changed in significant ways. I’m trying to de-stress and ratchet down

the intensity that becomes a part of your life on a daily basis. It’s hard to activate the off switch. It’s been less than two weeks but I’m already enjoying myself. I’m walking, hiking, biking… Doing all the things I never had time for in the past.

What has surprised you about the growth of sports betting since the repeal of PASPA?

There have been a lot of things that have surprised me. First of all, PASPA becoming the law of the land 28 years ago. It was a mistake and was imposed for reasons that were not valid. I was with Hilton Hotels at the time and we had just merged the operations of the Las Vegas Hilton and the Flamingo for the first time. We had the idea to go to racetracks around the country to set up sportsbooks. There was some interest from the tracks, although others were adamantly opposed. So PASPA ended that, but it didn’t affect our business in Nevada at all.

I was surprised when PASPA reached the Supreme Court. That was the hard part. But I wasn’t surprised when it was overturned. Those who pushed it were relentless. And when they reached the highest court in the land, then the momentum shifted. They went from a longshot to a favorite.

Each state seems to have a different model they’re using to operate sports betting. Why is that?

I have been disappointed that they haven’t used the Nevada model in most cases. We have gone through growing pains here and now have a very efficient and profitable system. I won’t point fingers at any state when it comes to regulations, but I’ve seen some that are really misguided.

Lots of sportsbook operators like to play the games too. Some become professional handicappers. Were you ever tempted to make the jump to the other side of the counter?

Once I got into management, no. When I became the sportsbook manager at Caesars Palace, I decided I’m going to be on one side of the counter or the other. I’m not going to try to do both. I was not going to try to capitalize on any information that came my way. Once I made that decision, I never looked back. But now that I’m not working full time in the industry, who knows? (laughs) Tell us what you think of the sports betting apps. They are pretty rudimentary. Will there ever be a great leap forward?

I have a different perspective than most. With the apps today, there’s so much emphasis on messaging and promotions and contests. And those things are great. I don’t mean to diminish or belittle those efforts, but as a lifelong career bookmaker, an app has one function at the end of the day: Take a bet and pay a bet. That’s why they exist. An app can have all the bells and whistles, but if a guy can’t bet when and where he wants and what he wants to bet on, then it’s failed. The most reliable apps that allow you to make a bet quickly are the best to me.

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Global Gaming Business JULY 2021

Said It”

“The assumption by a lot of people is that this is a negative thing. We view it as a positive.

We would love to have more cross-border currency. We’re looking to focus on the mass customer, premium mass— that’s our bread and butter, that’s who we are, where we want to go.”

—Rob Goldstein, CEO, Las Vegas Sands, on a possible digital currency in Macau and China

CALENDAR July 13-15: National Council of Legislators from Gaming States (NCLGS) 2021 Summer Meeting, InterContinental Magnificent Mile, Chicago, Illinois. For more information, visit NGLGS.org. LIVE July 19-22, NIGA Indian Gaming Tradeshow & Convention, Caesars Forum, Las Vegas.

For more information, visit indiangamingtradeshow.com. LIVE August 10-12: Australasian Gaming Expo, ICC Sydney, Darling Harbour, Sydney, Australia. For more information, visit austgamingexpo.com.

LIVE August 17-19: G2E Asia, the Venetian Macao.

Produced by Reed Exhibitions and the American Gaming Association. For more information, visit G2EAsia.com. LIVE August 16-18: Oklahoma Indian Gaming Association Conference & Trade Show, Oklahoma City Convention Center. For more information, visit OIGA.org/tradeshow. LIVE September 12-17: International Masters of Gaming Law (IMGL) Autumn 2020 Conference, Marriott Copley, Boston, Massachusetts. Produced by the IMGL. For more information, visit IMGL.org/conferences/autumn/overview/2021.

LIVE September 21-24: SBC Summit Barcelona, Fira Barcelona Montjuïc, Spain. Produced by SBC. For more information, visit SBCEvents.com. LIVE October 4-7: Global Gaming Expo (G2E), Sands Expo Center, Las Vegas. Produced by the American Gaming Association and Reed Exhibitions. For more information, visit GlobalGamingExpo.com. LIVE November 9-11: Betting on Sports Europe, Stamford Bridge, London. Produced by SBC. For more information, visit SBCEvents.com. LIVE November 16-18: SiGMA Europe, MFCC, Malta. Produced by SIGMA. For more information, visit SIGMA.com.mt. LIVE

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AMERICAN GAMING ASSOCIATION

High Wire Act An antiquated law needs clarity in a modern age

W

hen Congress introduced the Wire Act in 1961, its goal was clear: defeat mob-related organized crime. Spearheaded by then-U.S. Attorney General Robert F. Kennedy, the legislation aimed to clamp down on illegal gambling tied to organized crime by banning such gambling on America’s primary communication system at the time—the telephone. For decades, law enforcement has relied on the Wire Act to root out illegal gambling operators who prey on American consumers, offer no consumer protections and contribute no tax revenue to state or local governments.

In the modern age, Americans talk less on the telephone and more over electronic channels. This shift in communication has created incredible challenges for states, tribal sovereign nations, lawmakers, courts and federal agencies to decipher the Wire Act and its application.

New issues like internet server locations and transmission across state lines have only further muddied the waters on interpreting the law. Illegal gambling has largely shifted to an offshore online operation, making prosecution of illegal gambling more difficult. And while legal, regulated operators strive for strict compliance with the Wire Act and other federal laws, that comes with added costs and burdens, such as setting up mobile wagering systems that ensure wagers are placed and booked exclusively intrastate.

Over the last decade, the Department of Justice (DOJ) has gone back and forth on many of its opinions in these matters, trying to clarify its intent on which type of gaming the law applies to. This year, the U.S. Court of Appeals for the First Circuit decided the scope of the Wire Act is solely limited to sports wagering, rather than non-sport online gambling, such as casino gaming, lottery ticket sales and internet poker.

While this decision gives additional clarity around the Wire Act, it’s still just one circuit court’s opinion. Other opinions on the law still exist and other federal circuits aren’t necessarily bound by the First Circuit’s decision—so legal, regulated operators still need more certainty to

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Global Gaming Business JULY 2021

By RaShawn Mitchell

“

This year, the U.S. Court of Appeals for the First Circuit decided the scope of the Wire Act is solely limited to sports wagering, rather than non-sport online gambling, such as casino gaming, lottery ticket sales and internet poker. While this decision gives additional clarity around the Wire Act, it’s still just one circuit court’s opinion.

”

innovate and invest in mobile gaming. This clarity can also benefit states wishing to regulate online gaming within their borders.

Greater clarity on the Wire Act won’t just aid states and legal operators as we all recover from the devastating impacts of Covid-19 on our industry—it will ultimately benefit consumers, who benefit from the protections of the legal marketplace.

Online gaming is more popular than ever: combined, mobile sports betting and iGaming generated more than 14 percent of commercial gaming revenue in the first quarter of 2021— their third-largest share of quarterly revenue in gaming history.

Greater clarity will enhance consumer protections and further diminish the pervasive illegal marketplace––the original intent of the Wire Act. RaShawn Mitchell is senior director, government relations for the American Gaming Association.

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FANTINI’S FINANCE

Under Pressure What impact do regulators and legislators have on the valuation of gaming companies?

By Frank Fantini

T

he stocks of regional casino companies have historically traded at low valuations compared to their destination resort peers in Las Vegas and sister industries like hotels.

On the surface, it would seem casino valuations should be higher than those of hotel companies. They are, after all, hotels themselves that happen to enjoy the kicker of a casino being attached.

That discrepancy is usually attributed to legislative risk. Owners of hotels don’t have to worry about state legislators slapping punitive taxes on them or changing the rules of the game after the big investments have been made. Casinos do.

Those relatively low valuations have remained even as the regional casino industry is now decades old and the legislative environment has long since settled down. Indeed, casinos today are part of the economic establishment, with their lobbyists in state capitals successfully guarding to protect tens of thousands of jobs and many millions of dollars in tax revenues.

Today a new branch of the gaming industry has legislative risks, too. That is online sports and casino wagering.

It wasn’t long ago when online gaming was anathema to many, including some in gaming such as the late industry titan Sheldon Adelson.

The fear was that widows and orphans would spend themselves into ruin from their homes without ever stepping out into the light of day.

My, how things have changed. Now, many states are rushing to legalize online gaming. Former adamant opponents such as major league sports teams are falling over each other to sign marketing deals with gaming companies and even to host and operate sportsbooks.

Gaming companies eager to establish market positions are spending themselves into big deficits as they fight to be part of a highly profitable oligopoly once the inevitable industry consolidation occurs.

Investors, euphoric over the massive size of

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total addressable market, are pouring funds into these money-losing operations.

While brick-and-mortar casino operations continue to receive valuations of seven and eight and nine times actual, proven EBITDA, online gamers are selling at 10 and 20 and 30 times projected revenues and even higher valuations of future EBITDA several years out that might never come.

And in a world where revenue-hungry states are still legalizing online gaming, legislative risk is hardly, if ever, mentioned.

“

The risk is there. And it might be big. All one has to do is look at Europe, where countries are cracking down on TV advertising, limiting the amounts of money that can be deposited into player accounts or that can be lost, limiting ways to access funds, and slowing down the spin of online slots so fewer games can be played in a period of time.

”

But the risk is there. And it might be big. All one has to do is look at Europe, where countries are cracking down on TV advertising, limiting the amounts of money that can be deposited into player accounts or that can be lost, limiting ways to access funds, and slowing down the spin of online slots so fewer games can be played in a period of time.

In some cases, the new restrictions are having material negative effect on gaming revenues.

When I raise these issues with gaming operators and even regulators, the answers are that America is ahead of the responsible gambling curve, so the risk of material restrictions being imposed is unlikely.

We’ll see. As a resident of Florida, I do not see much of the promotion of online gaming on TV except in signage at ballparks and arenas and contests sponsored by the likes of DraftKings.

However, on a recent trip to the Philadelphia area, where sports betting is legal, I got the opportunity to view sports betting advertising.

I especially noticed an ad from PointsBet in which an attractive young blonde woman emphasizes the fast service the company provides. Fast, fast, fast is the theme, including fast to bet and fast to win money. The young lady is alluring and the message is appealing.

It is a good ad. However, as someone who is certainly no prude about gambling, I found the ad a little concerning.

If it were advertising fast, fast, fast mortgage loans or car loans or even payday loans, it might not engender the same reaction. But I asked myself, is this the kind of appeal we want to make on prime-time TV when kids are watching?

Now, I do not cite this ad to single out PointsBet. They simply produced an effective ad for a legal product. But it does raise the question of whether gambling advertising will face further regulation.

The Covid pandemic is fading, and the motivation for states to legalize online gaming as a new form of revenue might fade with it.

Meanwhile, we might see new concerns, perhaps sparked by phenomena such as the calls to gambling problem hotlines quintupling in Michigan in its first few months online.

If that pattern repeats and grows as online gambling proliferates it will worry parents, anti-gamblers and society more broadly. Then, the kinds of restrictions we see being imposed in so many European countries might find their way to America.

The message to investors: Don’t be complacent about legislative and regulatory risk. The total addressable market is only theoretical. It is just a mathematical calculation of expected revenues multiplied by population.

Prudence might factor in legislative and regulatory risks.

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 Las Vegas-based Marker Trax is a regulatory-compliant advanced marker system. The technology and processes help casino operators reduce cash management while improving a player’s overall gaming experience. The convenient marker advance technology bridges the present and future of gaming, making Marker Trax a leading partner in the industry. Being fundamentally designed for players and casinos, Marker Trax’s holistic marker system is fit for an industry that is becoming more cashless.

The convenience of Marker Trax is unmatched and allows for the advancement of funds to the mass market responsibly, safely, and conveniently.

The company has been focused on launching the most advanced and convenient version of Marker Trax, and is committed to the customer experience and offering a product that is convenient to use and execute in any jurisdiction.

One of the critical new features this year is the inclusion of a casino operator dashboard. The dashboard allows for real-time access to player accounts, activity, status, and customized report capability.

The dashboard is just another example of the company’s commitment to work closely with casino partners to ensure a successful implementation and launch of Marker Trax at their respective properties.

Marker Trax is agile and possesses the capabilities to work with any casino management system provider and create a seamless customer experience.

At present Marker Trax is working closely with Konami, International Game Technology, Aristocrat and Scientific Games.

Marker Trax has also formed a partnership with Sightline Payments, a fintech company specializing in digital payment solutions, to offer casino marker technology for sports betting and online gaming in legal, regulated jurisdictions across the country.

This new partnership with Sightline Payments will introduce funding options to the online gaming and sports betting communities in a legal and regulated market for the first time in history.

Marker Trax has several commercial and tribal casinos contracted throughout North America, with several other major operators to be contracted soon.

For more information, contact Chief Marketing Officer Carol Thompson, 1-702-764-4434, cthompson@markertrax.com, or visit the website at MarkerTrax.com.

AGEM Board of Directors Actions for June 2021 • AGEM President David Lucchese and Executive Director Marcus Prater shared some exciting news with members at the start of the June monthly meeting. Following a tour by both at the Black Fire Innovation Center, which is part of the Harry Reid Research and Technology Park overseen by the University of Nevada, Las Vegas, AGEM is aiming to set up a new worldwide headquarters based in this impressive space later this year. The proposed office will not be completed until October at the earliest, but this new location will provide AGEM with a purpose-built space to welcome the incoming executive director next March, as well as facilities to host in-person monthly board meetings for members. The benefits to this move are numerous, and it will also allow AGEM to be sited among an exciting list of other member companies as well as other notable innovators to the industry.

• It was announced recently that Nevada Gaming Commission member Deborah J. Fuetsch has resigned her post and Governor Steve Sisolak is set to appoint her replacement in the near future. Once this role has been filled, it is worthy to note that the governor will have filled seven of the eight regulator roles during his first term. AGEM has enjoyed a good relationship with the governor and the Gaming Control Board, and looks forward to working with the new commission appointee once the governor has made his selection.

• The last few weeks have seen good news and developments in Mexico. AGEM’s Mexico Committee Chair Carlos Carrión of Aristocrat has arranged a meeting this month with SEGOB Director Alma Itzec De Lira Castillo and other AGEM member companies to discuss three key topics—the proposed new federal law, opposition to the proposed “NOM” that would add a further layer of certification to gaming machines, and proposals for a marketing strategy to promote gaming activity and restart the industry post-pandemic. Signs are very promising in Mexico that these and other changes are moving forward in a more transparent, corrupt-free way, without lawmakers pushing their own agendas.

• AGEM members approved a contribution of $25,000 for funding to the International Problem Gambling Center, which provides evaluation, individual and group counseling services to those who have gambling problems. AGEM partnered with GLI in 2019 for the Lasting Impact Philanthropic Initiative, which pledged $200,000 over two years. Because of the pandemic and its impact on AGEM’s budget, the payment time frame will be extended.

Forthcoming Events • The first post-pandemic in-person gaming show, the National Indian Gaming Association (NIGA) Tradeshow & Convention, will take place at Caesars Forum in Las Vegas July 19-22. AGEM remains as a Platinum sponsor of this event and will have a small booth at the show.

• Reed Exhibitions and the American Gaming Association announced at the beginning of June that G2E will definitely take place as an in-person event in October in Las Vegas. The decision was taken after feedback from the industry and key stakeholders along with a detailed survey undertaken from April 27 to May 9 when 3,276 respondents provided feedback, with 83 percent of respondents stating they were likely or very likely to attend G2E and researching new products noted as the highest key reason to visit the show. The news was greeted very positively by the industry, which is looking forward to reconnecting with customers and contacts. Reed confirmed that registration will go live in July.

AGEMindex

The AGEM Index increased by 121.27 points to 979.7 points in May 2021, a 14.1 percent gain from April 2021. In the last month, nearly all of AGEM Index companies reported increases in stock price, with 12 posting positive contributions and one recording a negative contribution to the index. The AGEM Index has trended positively for seven consecutive months and has reached its highest mark ever recorded. Additionally, the AGEM Index was up 213.5 percent from the March 2020 low point at the outset of the Covid-19 pandemic. The AGEM Index’s May 2021 growth was due in large part to a 10.4 percent increase in the stock price of Aristocrat Leisure Limited (ASX: AL), which rose from $37.17 to $41.05. The stock was responsible for 36.92 points of the AGEM Index’s monthly growth. Another significant index contributor was International Game Technology PLC (NYSE: IGT), which added 34.46 points due to a 40.9 percent stock price growth from $17.22 to $24.26. The major stock indices had mixed performances. The Dow Jones Industrial Average and the S&P 500 grew by 1.9 percent and 0.5 percent, respectively. Meanwhile, the Nasdaq experienced a 1.5 percent decline.

JULY 2021 www.ggbmagazine.com

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M& ERGACQUISITIONS ERS The More Things Change, The More Things Stay The Same

By Brendan D. Bussmann

A

s the gaming industry continues to evolve, so do the industry players, corporations, suppliers, and other stakeholders.

The only constant among this group is that change thrives in this environment.

While some of the players may still look the same since before the pandemic, the hats they wear can vary, as seen with such a high volume of mergers, acquisitions, and other corporate activities over the years. Even through the pandemic, there was no stopping these continued efforts as companies either were slowed by the initial Great Shutdown or sought new opportunities to move forward.

In 2021 alone, the industry has seen a sampling of this activity including the sale of the Palms in Las Vegas by Red Rock Resorts to the San Manuel Tribe; the sale of the Venetian, Palazzo, and Sands Expo by Las Vegas Sands Corp. to Apollo; the acquisition of William Hill by Caesars Entertainment that triggered the sale of the William Hill non-U.S. assets; and the spinoff of the Wynn Interactive division of Wynn Resorts into a special purpose acquisition company (SPAC) with William Foley’s Austerlitz Acquisition Company.

This also includes other acquisitions in the sports betting space, as affiliates such as Better Collective completed its acquisition of the Action Network.

While some of these seem like major moves, it is similar to many transactions in the past such as the merger years ago between MGM and Mirage, and the subsequent merger with Mandalay Resort Group (Circus Circus Enterprises) through land-based M&A. 14

Global Gaming Business JULY 2021

The biggest deal of the year clearly is the sale of the Venetian, Palazzo and the Sands Expo Center by Las Vegas Sands to Apollo Global Market and the REIT, VICI

In the supplier world, major players such as Scientific Games had over the years acquired Don Best, NYX Gaming Group, Bally Technologies (which had previously acquired SHFL Entertainment), and WMS. The gaming industry has seen continual change through mergers and acquisitions as it has continued to grow and evolve. It is one of the more dynamic industries that allows this to occur because of its adaptability in the marketplace.

Twin River Transition A little over a year ago, most would not have recognized the transformation of Twin River Worldwide Holdings into the Bally’s Corporation that exists today. As highlighted in the May 2021 issue of the Global Gaming Business, Bally’s Chairman Soo Kim has been on a mission to build the company from its small roots into a robust operation that now stretches across 15 states.

A little over a year ago, industry insiders would have scoffed at the notion that Twin River would be the company it is today and the aggressive player that it is in the market. The company that began with two small locations in Rhode Island, with it roots dating back to Sol Kerzner and Len Wolman, now has turned into a corporation under the Bally’s brand that includes casinos, horse racing, sports betting and interactive gaming.

Looking at the acquisition run over the last year, the activity of Bally’s has been more than robust. In 2021 alone, Bally’s has aggressively engaged with several companies, including the recently closed acquisition of Bet.Works to solidify their interactive platform.

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DraftKings used a special purpose acquisition company (SPAC) to go public in 2020 The purchase of the Tropicana in Las Vegas is just one of the recent moves by the new Bally’s Corp. since it transitioned from the former Twin River Worldwide Holdings

REITs and SPACs

Bally’s understands the importance of its standings as a corporation in the gaming world by desiring a Nevada license and a place on the Las Vegas Strip with the Tropicana. This was done through a deal with Gaming and Leisure Properties, Inc. (GLPI), the real estate spinoff of Penn National Gaming. The pending transaction still needs regulatory approval, but provides Bally’s a strong point of access on the corner of Las Vegas Boulevard that is within earshot of Allegiant Stadium and the future stadium district, which could provide additional opportunities surrounding the Tropicana.

Additionally, Bally’s just closed its deal with Caesars for the acquisition of the Tropicana Evansville in Indiana.

While the acquisitions provide two solid platforms for the land and interactive foundations for Bally’s, this does not show the reach they have also covered in 2021 through additional acquisitions. This includes Monkey Knife Fight, a daily fantasy sports-based company, and Montbleu Resort from Caesars.

Bally’s was the biggest beneficiary of the merger in 2020 between Eldorado and Caesars Entertainment, as it acquired multiple properties out of this M&A activity that helped expand its footprint to cover 11 states, soon expanding to 13. Bally’s continues to push the envelope, as it made a strong effort to land the Richmond, Virginia casino license in a strange selection process. It has also been mentioned as a potential contender to submit for licenses in Chicago and New York.

Based on the efforts over the last year, Bally’s is far from done with either charting its own path or looking at M&A activity to grow upon its rapidly expanding base with a chairman that does not tend to rest on his laurels.

As highlighted above, real estate investment trusts (REITs) and SPACs are playing an integral role in the M&A space. REITs that have taken hold as a vehicle for the gaming industry over the last several years have allowed major gaming companies to unload some of their assets and focus on operations. While continuing to operate these casinos and resorts, the land and assets are transferred into these other companies that have partnered in some cases with private equity firms.

Some of the more significant REITs include GLPI, MGM Growth Properties (MGP)—a partnership between MGM Resorts International and Blackstone—and VICI Properties, which includes several casino brands including Caesars Entertainment, Jack Entertainment and others.

One of the biggest pending acquisitions by a REIT and private equity firm was announced earlier this year with the sale of the Venetian, the Palazzo and Sands Expo by Las Vegas Sands Corp. This was a landmark sale of iconic properties that have been affixed on the Las Vegas Strip since opening in 1998 on top of the rich history of the original Sands Hotel. The vision that was created and instilled by the late Sheldon G. Adelson changed the landscape of the Las Vegas Strip by building a model on non-gaming and convention-centric business.

The deal is a $6.25 billion combination between Apollo Global Management and VICI. Apollo will acquire the operating company of the Venetian for $2.25 billion, and VICI will acquire the land and real estate assets for $4 billion.

The sale also includes the $1.8 billion Sphere, the Madison Square Garden (MSG) project that is currently under development. Apollo is no stranger to the gaming industry, as it has previous relationships with Caesars Entertainment, as well as current relationships with Great Canadian through IGT’s Lottomatica.

SPACs have also been used as a vehicle for M&A activity in the gaming industry. Many companies have used this as a vehicle to take a company public, or as a tool for acquisition. One of the most front-facing examples of this was taking sports betting giant DraftKings to market in 2020. This allowed DraftKings to grow as a sports betting and fantasy sports company with a technology platform in SBTech to combine and go public at once. The partnership that was announced in late 2019 was acquired by Diamond Eagle Acquisition Corporation.

Other key examples are the creation of an acquisition company by Affinity Gaming (Gaming & Hospitality Acquisition) in partnership with Z Capital Group, or using a SPAC to take Sportradar public.

JULY 2021 www.ggbmagazine.com

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Sports Betting and iGaming

Whether it is through traditional means of companies completing transactions through mergers and acquisitions or through the spinoff of a division or a company into a SPAC or a REIT, it continues to show that the industry is maturing and is on par with is the official sports betting partner any other industry in how PointsBet of the National Hockey League it handles transactional business. The opportunity for Investment Intensification growth continues as the While not all of this is strictly M&A activity, inand partnership in the sector continue to industry expands beyond its vestment fuel additional activities, including partnerships roots through the with teams, leagues and media companies. Many incorporation of technology, of these deals include partial ownership of an operating company. One of the first major ones was media and other with NBC Sports, which invested in PointsBet through its multi-year partnership. opportunities.

As the U.S., and frankly the rest of the world, looks at sports betting and online gaming as an expansion opportunity, this provides the space where operators, suppliers, media companies and other stakeholders are all looking for a piece of the activity. The sectors are starting to blend together as more and more outside companies see the opportunity to play a part in the gaming industry. It also allows existing players the opportunities to blend operations between platforms, land-based operations, and other key assets.

Some of the more recent examples include the combination of the Stars Group and FanDuel under the Flutter Entertainment umbrella, the previously mentioned acquisition of SBTech by DraftKings, and the most recent acquisition of William Hill by Caesars Entertainment. This also has allowed companies like Wynn Resorts that previously had not had a strong presence in the sports betting and online gaming space to place a stake in the ground with its initial acquisition of Bet Bull as a platform as it sought expansion across the United States. This was further exemplified as it spun off its newly formed interactive division into a SPAC with Bill Foley to further allow expansion beyond the borders of the United States.

Media has also played a role in the M&A space, as seen in 2020 with the acquisition of Barstool Sports by Penn National Gaming. The effort has transformed the Penn National experience as it looks not only to take the Barstool media platform online, but also to incorporate the atmosphere into their land-based efforts. Additionally, Bally’s acquired the rights to relaunch the old Fox Sports Regional Network under their brand, which will provide further synergies with the Bally’s brand.

DraftKings recently acquired VSiN (Vegas Sports Information Network), a multi-platform broadcast and content company that was started to provide sprots betting news, analysis and data to the sports betting market.

DraftKings also recently acquired Blue Ribbon Software, which includes jackpots and gamification tools to enhance the customer experience across the sports betting and iGaming platforms.

Operators are looking for additional tools to enhance their platform and customer experience across all sectors, from suppliers to media companies. While focused largely on the sports betting and online gaming space, some organizations are looking to position themselves in the fixedodds wagering space, specifically aimed at attracting a new customer to the racing industry. One recent acquisition was done by PointsBet, which is familiar with fixed-odds wagering because of its roots in the Australian market. It recently acquired advanced deposit wagering operator Premier Turf Club and BetPTC.com to expand its presence in this future market.

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PointsBet also now has a partnership with the NHL that provided them with an equity stake.

Other media companies and communities such as theScore continue to increase their footprint by looking at other opportunities in the space. Affiliates and media companies are also seeing M&A activities such as the recently closed Better Collective and Action Network that have merged to increase their footprint in the sports and online sector.

While 2021 has seemed like a busy year to date, it has been critical to the evolution of the gaming industry that will continue well in the future.

Whether it is through traditional means of companies completing transactions through mergers and acquisitions or through the spinoff of a division or a company into a SPAC or a REIT, it continues to show that the industry is maturing and is on par with any other industry in how it handles transactional business. The opportunity for growth continues as the industry expands beyond its roots through the incorporation of technology, media and other opportunities.

The M&A activity also allows access for investors that may have traditionally not focused on the gaming industry. The challenge some of these individuals will face is understanding the high standards that exist in the regulatory arena in the industry. While some of these M&A activities have led to consolidation in parts of the industry, they have expanded overall as entrepreneurs lead new initiatives that push the industry forward through innovation.

The activity of today will continue to evolve in pushing the industry forward. The more things change, the more they stay the same.

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

The risk taking spirit of gambling, adding imagination to everything we create. www.bluberi.com

7370 Dean Martin Drive, Suite 407 Las Vegas, NV 89139 info@bluberi.com

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‘Obsessed with the Game’ With three strong product groups, inventive technology and imaginative marketing, AGS emerges from the pandemic stronger than ever

By Frank Legato

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hen assessing the state of the casino industry, anyone would agree that 2021 is shaping up to be as successful as 2020 was disastrous. Companies that a year ago were looking for ways to survive to outlast the Covid-19 pandemic are now riding a wave of pent-up demand as customers clamor to return to casino floors without restrictions, without masks, and without fear.

On the supplier side, there is perhaps no company that better presents a microcosm of the industry’s rebound than AGS. The company had made steady gains since CEO David Lopez took over in 2013 and began assembling the team that would ultimately transform the company from a small specialty-game supplier into one of the major players in the supply sector. Momentum continued as the new AGS lured talent, added through acquisition, and engineered a successful IPO that led to Lopez and top executives ringing the bell on the New York Stock Exchange as its shares began trading on January 26, 2018.

Since that IPO, the company has never stopped evolving, building successful product libraries on the slot side, developing one of the most enviable collections of table game products in the business, and most recently, building an interactive division that is steadily growing in the accelerating online gaming market.

AGS, of course, was not alone among the companies struggling to survive last year and is not alone among the companies now poised to benefit from the industry’s return to full steam. However, AGS seems better poised than many to continue recent positive results and ride what is now a wave of pentup demand to long-term strength.

Part of the optimism of company officials is due to the marked improvement of financial results in the first quarter of 2021. Revenue and pre-tax earnings were both up, compared to Q1 2020—before the pandemic took hold. AGS’ stock price also has rebounded nicely.

While Lopez attributes some of the positive Q1 results to pent-up de18

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mand as operations return to pre-pandemic capacity, he notes that AGS is set up for the long term. R&D continued through the industry lockdowns in all three of the company’s divisions, and momentum is now building for some of the strongest products ever from the AGS team—engaging new slot games, some of the most unique table-game progressives the market has seen, and a continuing surge in the company’s interactive footprint as top games are ported to iGaming operators via the company’s proprietary remote game server.

“We’re seeing the convergence of pent-up demand,” Lopez says.

“We’re starting to truly roll out some of the product that we worked on during the pandemic. We are not just in the early innings of our premium product strategy; we’re still warming up in the bullpen before the game starts.”

The AGS company slogan, in place for several years, is “Obsessed with the Game.” The explosion of new content across the company’s product library

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“We’re starting to truly roll out some of the product that we worked on during the pandemic. We are not just in the early innings of our premium product strategy; we’re still warming up in the bullpen before the game starts.”

—David Lopez, CEO, AGS

can all be traced to that company philosophy and culture of making great games.

“It’s going to be all about the games for us, really highlighting the products that our studios have been working on before, during and after (the Covid-19 crisis),” says Lopez.

Lopez is quick to deflect any credit for the continuing strength of AGS product to the gaming veterans who head the teams of each division—Mark DeDeaux, senior vice president of slot products; John Hemberger, senior vice president of table products; and Stuart Carr, vice president and general manager of AGS Interactive. Tying all divisions together is another gaming veteran, Matt Reback, who is executive vice president of operations.

“We’re so happy to have these guys on our team, whether it’s Mark, John or Stuart, and the execution by all these guys,” says Lopez.

Soaring Slots The casino slot business for AGS was riding high when the pandemic hit last year and has continued its momentum as the industry has reopened.

The company’s marquee slot products have included the Starwall merchandising display, introduced at the 2019 Global Gaming Expo and launched early last year—shortly before the casinos closed due to the coronavirus.

Starwall is a giant video backdrop display for Orion premium cabinets that frames three or six Orion games in a 4K video display that mimics the theme, colors and features of the game content on the Orion Portrait.

Measuring 8.5 feet tall by 5 feet deep, the merchandising display can frame a three-pack along a wall or a freestanding two-sided six-pack bank of games, available in multiple different configurations The Orion Curve cabinet, which highlights 4K graphics on a 49-inch curved portrait-style monitor, was launched at the same time as the Starwall early last year. It is being deployed both in for-sale versions and “Premium” versions, which are lease-only premium games.

DeDeaux, in the two years he’s overseen slot products at AGS, completely reorganized the slot products group, bringing in new talent to fill out three discipline groups—gaming operations, product management, and sales operations.

“We really made an effort to restructure the slot products group to have three specific areas of the business, but also to have business leaders with proven experience and talent that fit with the AGS culture,” DeDeaux says.

“And I will humbly say that this is the best team of people I’ve ever worked with. (Former Konami executive) Steve Walther stepped in and took over

our product management department and completely changed everything we did in product management. The focus really has been on getting deeper and better alignment with sales and with R&D.” DeDeaux calls the slot products group the “hub” bringing together commercial opportunities for slot products, “understanding all of the market dynamics and competitive landscape, and bringing really thoughtful ideas and strategies into the discussions with R&D.” Among the R&D successes has been the new AGS Atlas Platform, with enhanced animation and graphics. “Overall, it’s a more efficient platform to develop (games) on,” says DeDeaux. “Our game designers now have a lot more efficiency in how they develop games. There’s enhanced graphics and animation available to them for use, and we can now do multi-denom, in a lot of different ways that we’re excited about.” The premium versions of many of those games, starting with Jade Wins Deluxe and Golden Wins Deluxe, are featured exclusively with the Starwall display.

Lopez comments that the Starwall display essentially provides an immersive slot area for a single game. “I remain excited about Starwall, and its potential staying power,” he says. “And we’ve come out with two new configurations for Starwall, including a football shape, which is going to, without using the term ‘social distancing,’ increase the comfortable space around each player. It will have a carousel feel to it, although it won’t be a carousel. It will increase that JULY 2021 www.ggbmagazine.com

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“The biggest opportunity for us is content, content, content.

It comes down to that diversity of palette that we have across all of our studios and their capabilities.”

—Mark DeDeaux, Senior Vice President of Slot Products, AGS

comfort zone between players. And along with the configurations, we have striking new media content to keep things fresh.”

“A big part of why we’ve seen success with the Starwall initially,” adds DeDeaux, “is that it just absolutely stands out on a casino floor.

You cannot walk past it and not have it catch your eye. It’s merchandising that is almost like a work of art.

“You see so many merchandising packages out there that have different curves and bends to them, which are all great, but this was intended to be like a pure canvas—something where the game designers, the animators, and the graphic designers could paint a beautiful picture.”

As launch themes for the Starwall, the decision was made to create two extensions to popular Orion for-sale games, Golden Wins and Jade Deluxe, enhanced on the Orion Portrait Premium cabinets featuring the powerful new platform.

In addition to its rapid spread across Class III markets, the Starwall package and game themes are being offered to AGS Class II customers. “Given our big Class II portfolio, it was great to have a premium product like Starwall with proven titles like Golden Wins Deluxe and Jade Wins Deluxe,” says DeDeaux.

He says a launch of follow-up titles on the Starwall package will come later this year with another brand extension, River Dragons, a popular Orion Portrait game that features beautiful art depicting two animated dragons that float around the screen framing the reels. This version of River Dragons will send those dragons not only around the individual monitors, but across the entire Starwall display. “When certain events are triggered, whether it be a bonus or just an attraction mode, there will be lots of interaction between the games and the Starwall canvas,” DeDeaux says.

Another new game group for Starwall will be called Epic Reels.

“Between new types of game mechanics and features along with another planned extension, I think we’ve got more winners to come on Starwall,” says DeDeaux.

Meanwhile, the company’s slot products group continues to roll out a pipeline of new game groups for the Orion Portrait and Orion Curve cabinets.

One of the newest is the Ultimate Choice Jackpots family, its games carrying the common feature of a picking feature in which the player makes choices to reveal prizes that can include a progressive jackpot.

There have been two initial Ultimate Choice Jackpots games, with hit titles Red Silk and Aztec Chief, and a second library of games including Captain’s Riches and Tiki Fortune.

“By far, Ultimate Choice Jackpots games have been winners for us,” DeDeaux says. The next game launches include Coin Bonanza, which features five-by-five reel sets and the AGS “Cash-on-Reels” feature, a simple mystery feature that pays cash amounts displayed on coin symbols when two land on adjacent reels.

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“The initial performance of Orion Curve has been promising,” DeDeaux says. “We launched the Curve for sale, and we’re now launching the Curve Premium.” He says the Orion Curve Premium cabinet debuted with another extension of a legendary brand —Rakin’ Bacon! Deluxe.

“Rakin’ Bacon! Deluxe has been an absolute hit for us,” DeDeaux says.

“The game designers have added some unique features to our little piggy character and evolved the original Rakin’ Bacon! concept and really added some new features to the game. It is proving to be a strong performer.”

“The Orion Curve is promising,” says Lopez. “You never know what you’re going to get when you release a product—it truly is like Forrest Gump and the box of chocolates—but this one really has performed well early on, and I’m really excited to see where it’s going to go.”

One other development for the slot products group is a partnership with Exacta Systems that introduced AGS content to the historical horse racing market, beginning with Kentucky. AGS ported its content to the Exacta platform, with titles including Rakin’ Bacon!, Tiger Lord, Peacock Beauty and others offered in HHR versions on the Orion Portrait cabinet.

“We’re also going to also be making the Orion Curve available for HHR, so as we move forward, we intend on continuing to leverage our best-performing games,” says DeDeaux.

Tables and Progressives While the AGS slot products division continues to hum along, the table products division has been groundbreaking in its offerings this year.

In barely half a dozen years, through acquisitions and organic develop-

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“Bonus Spin Xtreme has the ability with a single progressive seed to link all of your table games across the floor to the common jackpot. So baccarat can be linked to blackjack, can be linked to your specialty games, to craps, to roulette.”

—John Hemberger, Senior Vice President of Table Products, AGS

ment, Hemberger, a table game expert and inventor who ran the proprietary games division at Shuffle Master for seven years—part of the time while Lopez was with that company—has built the AGS table products division from scratch with proprietary offerings such as Criss Cross Poker, Jackpot Hold’em, and Buster Blackjack.

Hemberger also built a utility products business, featuring the Dex S shuffler and the new single-deck packet shuffler Pax S. But where AGS has really shone on the table side is in its side bet and progressive products—most notably the STAX Progressive product, which adds a must-hit-by progressive to table games, and Bonus Spin, which adds a wheel bonus to table games.

“Having John at the helm is having a guy that I would say is the best in the table game space, running anything,” says Lopez. “And that’s not even like an MVP debate in the NBA or any other sport. He’s top-notch, and the team he’s put together is fantastic.”

Arguably the best product yet on the progressive side for AGS is Bonus Spin Xtreme, a progressive side bet system that enables casino operators to link all table games on the casino floor to the same jackpot pool, requiring only one seed amount and providing faster-incrementing and larger jackpot awards.

Bonus Spin Xtreme applies a unique trigger to each table game, allowing the two-level Bonus Spin wheel—a grand prize spin for the triggering player along with a secondary jackpot for each player at the table—even on games such as roulette and craps that never hosted progressives before, in addition to baccarat, sic bo, and poker along with the traditional blackjack version.

As a third prize, Bonus Spin Xtreme incorporates the mystery must-hit-by progressive; when triggered, the wheel spins to pick one of the players with the progressive bet down for that prize.

“Bonus Spin Xtreme has the ability with a single progressive seed to link all of your table games across the floor to the common jackpot,” Hemberger says.

“So baccarat can be linked to blackjack, can be linked to your specialty games, to craps, to roulette.”

He adds that Bonus Spin Xtreme combines many of the best features of other AGS table products. “The beauty of this product is it really takes advantage of all of the best features of our traditional Bonus Spin,” he says, “but adds some of the other things that are working on the STAX platform, and things that we just see in general on the table game side that are exciting.

“So when you think about a game like craps, and you think about all that energy that’s generated at the table, Bonus Spin Xtreme is a true community progressive. Everybody at the table, regardless of game type, by the way, is winning together. And that generates a lot of excitement.”

The new progressive product recently was rolled out in California casinos, and AGS has begun securing widespread approval in other markets across the U.S. Hemberger says the next installs are expected in Michigan, Connecticut and Maryland. “A lot of the excitement with this stems from the fact that there’s a progressive here that can go onto roulette,” Hemberger says. “That is the piece of it that’s really generated a whole bunch of interest, because there’s not really anything out there that’s had any level of success on roulette in the form of progressives.”

While the new progressive product is rolling out, AGS is launching its second shuffler, the single-deck Pax S. “We’re super excited about it because we handled development on this shuffler from day one,” Hemberger says.

“There was nothing that we acquired from the outside here. It was fully homegrown, and we’re very excited. We have our first signed agreements locked in and ready to go.”

Pax S is a single-deck shuffler that delivers packets of cards to each player—seven cards per player for pai gow, for instance. “It’s a shuffler that stays true to what our commitment was when we got into this business—to provide an economical alternative to what’s out there in the market right now,” says Hemberger. “We certainly feel like we have a very robust product with all the features that operators are expecting in shufflers, but nothing that’s unnecessary that’s going to purely drive up the price of a unit.”

“I’m super excited about Pax S,” says Lopez. “I come from that space—I know what it takes for a unit to be successful there. We’ve got the right salespeople, we’ve got a service team and service leadership that understands the shuffler business.”

Hemberger recently launched a marketing program that will make it easy for operators to offer a complete package of AGS products. Called the AGS Arsenal, it offers operators one all-in price to offer any and all AGS table games, side bets and progressives for a set period. “They can offer any of these products and change the number as demand warrants,” Hemberger says. “It gives operators the flexibility that they need, and it allows us to form a more long-term commitment to each other, because typically these deals are not going to be month-to-month agreements. They’re going to be more like a year or two years.”

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“We’ve said all along, good games are good games for a reason. The math is good, the graphics are good, the ride is good, the player experience is good. It’s the same reason people like playing Rakin’ Bacon! in a casino—they play it online and get a similar experience.”

—Matt Reback, Executive Vice President of Operations, AGS

On to Interactive One of the highlights of the AGS first-quarter earnings report was a 41 percent rise in revenues for the company’s newest division, AGS Interactive. Thanks to its 2018 acquisition of U.K.-based aggregator Gameiom Technologies, AGS can port as many of its games to the online world as necessary, without the need of a third-party aggregator.

According to division head Carr, AGS Interactive was well on its way before the pandemic hit last year and was on track to grow quickly in any event.

“The revenue increases are partly fueled by the pandemic, but also because we’ve brought a number of operators live and rolled out more AGS content,” Carr says. “A number of operators in North America were signed in 2020, but actually have gone live in the first half of this year.”

Adds Reback, “Our focus in the first quarter was really to expand our (iGaming) distribution by getting live with any of the operators where we were not live yet. We also wanted to expand our real-money library, so we added hit land-based titles like Red Silk, Dragon Fa, Blazing Luck, and Golden Treasure.

“Adding popular land-based titles that were ported over, and getting live with the operators, was really the main part of our focus. Pandemic or no pandemic, it would have been a very similar focus.”

Carr says the real reason AGS is rapidly gaining ground in the interactive space is the same as other company divisions—the strength of the games themselves. “The AGS game content is strong. We’ve had several successful titles— word spreads very quickly among the operators, and the fact that players recognize the game from playing in land-based casinos is also beneficial. Capital Gains is our most successful title in North America, and other top performers include Rakin’ Bacon!, Jade Wins and Fu Nan Fu Nu. In Europe, Red Silk and Aztec Chief continue to exceed expectations.”

“We’ve said all along, good games are good games for a reason,” says Reback. “The math is good, the graphics are good, the ride is good, the player experience is good. It’s the same reason people like playing Rakin’ Bacon! in a casino—they play it online and get a similar experience.”

AGS will soon add table games to its online offerings, as well as its lineup of side bets and progressives. “This is something AGS is known for, and we continue to see demand for on the land-based side,” comments Reback. “Getting these table game progressives ported over for online and real-money tables is something that can be a real differentiator.”

He says the first table offering online will be a blackjack game with side bets.

On the bigger picture, Carr says the mission for the interactive division is to spread its game footprint quickly, porting over as many popular land-based games as possible, expanding the portfolio, and going live with more operators 22

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and sites.

“AGS Interactive’s biggest priorities are to ensure that we are at the forefront of new states opening up in North America so that we can offer AGS and best-of-breed, third-party aggregated content quickly,” Carr says. “We want to continue to be a strong distributor of content and make sure that we capitalize on the omni-channel approach, meaning that we launch game content online almost simultaneous to their launch in land-based casinos.”

In addition to spreading from its current partnerships in New Jersey, Pennsylvania and Michigan to West Virginia and other U.S. states as more legal U.S. markets open, the company has spread online in Canada, and is looking to expand into Latin America.

The company has seen much success in Ontario with sites operated by the Ontario Lottery and Gaming Corp. “Golden Wins was our launch title,” says Carr, “and I think it exceeded their expectations right out of the gate.

We’ve also recently gone live with Loto Quebec, and we’re seeing similar performance, because our games do well in Canada on the land-based side—and that’s a pretty good indicator of how things will go.”

“It is exciting to be live with OLG and Loto Quebec,” says Carr, who adds that AGS is negotiating to spread online to all other Canadian provinces. “Outside North America, we are doing business with tier-one Gibraltar and Maltese operators in Europe, getting ready to launch in Romania and the Baltics, and we’re live in Mexico and Colombia with expansion planned in these territories.”

“It’s all about expanding our distribution,” says Reback. “That’s where we’re super focused. It’s a huge mission to expand our library of games, to get our table games out there, and to get our progressives going.”

AGS is coming out of the pandemic at full throttle in all its divisions, and in all divisions, one constant remains—the strength of AGS games and technology. “The biggest opportunity for us is content, content, content,” says DeDeaux. “It comes down to that diversity of palette that we have across all of our studios and their capabilities.”

“The two things really drive all of our successes is our products and the people on our team,” says Hemberger. “We really try to stay committed to innovating and thinking about the players and the operators when we’re developing our products.”

For Lopez, everything comes back to his team.

“We have an efficient, effective, and very powerful team, and they punch way above their weight class,” he says. “It’s all about execution, and letting the team do what they’re best at.”

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All TOGETHER Now What’s the difference between distributed gaming and skill games? Miles and miles and lots of lawyers.

BY BILL SOKOLIC

P

ennsylvania has evolved into a melting pot of slots. Larger casinos like Live! Casino & Hotel Philadelphia feature banks of traditional games. Truck stops carry up to five video gaming terminals, or VGTs, each. They look like slots. They play like slots. They are slots. But in industry parlance, they’re dubbed distributed games. And they’re completely legal.

Here’s where the melting pot gets a little dicey. Established companies such as Golden Entertainment, which handles distributed games in Nevada and Montana—and also operates casinos—have lobbied the state to expand the VGTs to bars, taverns and fraternal organizations, to replace the “gray” games that aren’t quite legal.

Casinos aren’t crazy about that idea, but they’re even more worked up about “skill” games, which on the surface also look like typical slots. Companies such as Pace-O-Matic design the software for these games and distribute them to bars, taverns and the like under the name Pennsylvania Skill. To the Pace people, the skill part is what it’s all about. Despite their appearance, they are not slot machines because slot machines depend on luck and Pennsylvania Skill games depend on, well, skill. Mostly skill, or so they say.

Casinos and VGT operators don’t buy it. They want Pennsylvania Skill banned since they are not regulated, do not pay gaming taxes, and take business away from operators that do, thus reducing the amount of tax revenue, thus reducing the amount available for worthwhile programs. The Pennsylvania Lottery echoes these complaints.

So far, courts have not ruled them illegal, but at the same time, they’re not strictly legal.

For Pennsylvania Skill and Pace-O-Matic, it’s us versus them, but the us part wants to join the them. Become regulated. Pay the gaming tax. Be just like the big boys of slots.

Supposed “skill” games can crop up in many locations, including gas stations and convenience stores

Born in the USA

If it sounds like this gaming stew is a microcosm of gambling’s future in the U.S., you may be right.

Nevada has more casinos than any place in the country, and lots of slots within the confines of these casinos. But visitors and locals could also play slot machines in grocery stores, taverns and other non-casino locales. Such distributed games have coexisted with casino slots for years. Golden Entertainment has carved out a nice business in both worlds.

Pennsylvania shares the slot duality with Nevada, but in limited doses.

The addition of VGTs at truck stops was part of the Gaming Expansion Act, passed by the legislature and signed into law in 2017. To date, the Pennsylvania Gaming Control Board has approved 44 locations, each with a maximum of five games. There are nine others licensed and ready to go, and 24 applications in process. “Any truck stop that meets the qualifications is permitted,” says Doug Harbach, communications director for the board.

How well do they do? The Bald Eagle Truck Stop in Lock Haven produced revenue of $263,216 between January and April on a handle of more than $3 million. The store declined to comment for this story.

Golden Entertainment wants a piece of that pie by extending VGTs to bars, taverns and fraternal organizations—the kind of establishments served

by Pennsylvania Skill.

“Golden is pursuing an expansion of the regulated VGT industry,” says Blake Sartini II, senior vice president of distributed gaming for the company.

“It would add substantial tax revenue along with the casinos.”

This has not been met with enthusiasm from the casino industry. “Casinos have certainly expressed displeasure with elected officials on the original approval in the gaming act of 2017 and any movement toward expanding where these games can be placed,” Harbach says.

—Blake Sartini II, Senior Vice President of But the concern goes beyond Pennsylvania.

Distributed Gaming, Golden Entertainment “We’re opposing the distributive gaming model in multiple states where

“We are pushing for full expansion, bars, restaurants, fraternal organizations. It’s a very good opportunity to grow and help small businesses.”

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“Casinos are definitely on board with getting rid of unregulated games and machines that siphon off revenue from their locations and tax dollars for the commonwealth.”

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

it’s being considered, including Missouri, West Virginia and Ohio,” says Eric Schippers, senior vice president, pubic affairs and government relations for Penn National Gaming. “Expanding VGTs in bars and taverns across the state will have a profoundly negative effect on the existing casinos there, as we’ve seen in Illinois.”

Bad Actors While lobbying efforts from Golden Entertainment are not a lock to succeed, the problem with Pennsylvania Skill is perhaps more complicated. They’re here already, by the thousands. Make no mistake. Pennsylvania Skill and PaceO-Matic have few, if any, friends in the industry: Those friends do not include the Gaming Control Board, the casinos, the Pennsylvania Lottery, VGT supporters, the American Gaming Association (AGA) or the Association of Gaming Equipment Manufacturers (AGEM).

No matter. They don’t see their product as games of chance, but games of skill. That distinction is what they hang their hats on to remain in business.

But the distinction doesn’t hold much sway with the rest of the industry.

“Unfortunately, these machines are being placed in locations consumers are already visiting, like gas stations, convenience stores and bars or taverns,” says Jessica Feil, vice president of government relations and gaming policy counsel of the American Gaming Association. “They can prevent consumers from seeking out casino gaming for entertainment, which in turn undermines regulated gaming’s ability to grow tax revenue for states.”

Could the same be said for expanding VGTs to many of the same locales?

Golden Entertainment has straddled two worlds. The company owns 10 casinos, nine of them in Nevada; the other is in Maryland. It owns over 16,400 slots, 120 table games, and 6,200 hotel rooms. Through its distributed gaming business in Nevada, Golden Entertainment operates video gaming devices at over 1,000 locations and owns some 60 taverns.

“We’re one of the largest distributed gaming operators in the country, operating more than 10,500 gaming devices across Nevada and Montana,” says Sartini, whose father launched the business. “Pennsylvania hopes to be added to the list. We are pushing for full expansion—bars, restaurants, fraternal organizations. It’s a very good opportunity to grow and help small businesses.”

Golden distributes games by IGT, Aristocrat and other traditional manufacturers.

Konami Gaming Inc. has a rich game heritage with a lot to offer this segment of the industry, especially for operators looking to diversify their portfolio, says Steven Cushing, senior product manager for the company. Konami views VGTs as an area for strategic growth.

“Distributed games are usually associated as residing in several venues, maintained by a route operator, depending on jurisdictional regulations. The route operator is responsible for game maintenance and updates. In most

cases, VGTs have several titles in one cabinet, as space in these venues is often limited,” Cushing says.

Some markets offer progressives. “Must-hit-by” or “mystery” progressives are the most common, he says. “There is a trend toward more progressive jackpots. Larger wide-area jackpots across all venues also offer a new area of expansion.”

While Sartini wants his company to put games in many of the same kinds of locations as Pennsylvania Skill, he thinks the skill games should be stopped. “They’re deemed illegal and unregulated. If we did that our license would be in jeopardy.”

That whole “deemed illegal” thing has not yet been decided by the courts; Pennsylvania Skill and Pace-O-Matic have scored some victories.

“Regulated slot companies that have a presence at both casino and VGT locations are most certainly not the problem,” says Marcus Prater, executive director of the manufacturers association. “It’s the unregulated companies that continue to prey on the people of the commonwealth.”

To President Joe Lupo of Hard Rock Hotel & Casino Atlantic City, skill games are still gambling.

“Any type of wagering should be regulated and approved through the regulatory body of the state,” Lupo says. “The wagers and the needed oversight of gambling ensures integrity; therefore, this type of game needs to go through the same methodology as any other wagering unit.”

Luck Versus Skill Pace-O-Matic has so far succeeded in convincing courts they are not illegal because they are games of skill. Casino slots and VGTs rely on random number generators for the outcome. Luck, in other words. Pennsylvania Skill games do not, something executives point out as a reason they are not subject to gaming laws in the commonwealth.

A 2014 Beaver County case ruled in the company’s favor for that reason. A Commonwealth Court decision reinforced that decision. “The final decision on upholding our game’s legal status is currently in the Commonwealth Court. It is important to note that Pace-O-Matic is the entity that took action to uphold our legal status,” says Paul Goldean, chief administrative officer for the company.

The indecision in the courts over whether they are or aren’t games of chance sows confusion, Prater says.

“It leaves law enforcement confused on how to crack down on these machines,” he says.

Pennsylvania Skill games remove the element of chance and replace it with what spokesman Michael Barley called predominant skill. “Our games require the player to use the skills of patience, hand-eye coordination, memory and speed. Our games present options and choices,” he says.

Players have a number of combinations for puzzles to choose from. “You have the ability to preview the puzzles to see the combinations before completing the play,” Barley says.

They also have a timer to consider.

“Dragon Ascent” is more of a first-person shooter game where dragons fly in a pattern, Barley says. “The bigger the prize, the less time you have to complete the play. You have to pay attention.”

JULY 2021 www.ggbmagazine.com

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“We would support legislation that makes clear slot machines, as defined in Pennsylvania’s Gaming Act and which includes skill games, are only legal in licensed casinos.”

—Joe Billhimer, Executive Vice President, Cordish Gaming Group

Casino Control “Graveyard Gold” is played like tic-tac-toe, with graveyard icons instead of Xs and Os. The goal is to get three of a kind in a row—like tic tac toe. If the screen doesn’t show two of a kind across, down or diagonal, press a button for the next puzzle. Keep calling up a new screen until you reach a puzzle with two icons.

“If you can’t win every time, it’s not a skill game,” says Rick Goodling, compliance supervisor for Pace-O-Matic.

What Pace-O-Matic seeks is to have these games become a regulated part of the industry. A stamp of approval from Pennsylvania.

“We are engaging with members of the General Assembly in an effort to implement regulations and greater enforcement along with paying additional taxes to the commonwealth,” Barley says.

Pace-O-Matic operates in multiple states and is regulated in Wyoming, Georgia and the District of Columbia.

“Our estimate for state tax revenue from skill games in 2021 is close to $50 million, and $80 million if the economy opens fully,” says Peter Zaleski, a professor of economics at Villanova University and a consultant for Pace-O-Matic.

Zaleski testified before the legislature last year in opposition to SB 1256, a bill that would all but stop Pace-O-Matic.

SB 1256 would prohibit skill games from offering cash to winners, just merchandise or food and beverage—as long as the value of said prize does not exceed the cost of playing the game.

“It would kill the skill game industry,” Goldean says about the legislation.

The bill would ban skill games, legalize VGTs and prioritize the interests of large, out-of-state companies over Pennsylvania small businesses and manufacturers.

This year, SB 212 would do the same.

The Pennsylvania Lottery and the casino industry consider the games to be an unfair competitor that uses loopholes to avoid gambling taxes by claiming their games are skill-based when the skill doesn’t go much beyond the tap of a button. The lottery and casinos say Pennsylvania Skill also cuts into their business.

Pace-O-Matic disagrees on both assessments.

“We looked at annual lottery sales growth in Pennsylvania compared to a control group of New York, New Jersey, Delaware and Massachusetts, states where there are no skill games,” Zaleski says. “In 2018 and 2019, as the presence of skill games grew, lottery sales growth in Pennsylvania exceeded lottery sales growth in the control group states by an average annual rate of 2.2 percent.”

Zaleski says the introduction of Pennsylvania Skill games in 2015 also grew slot revenue in the casinos by 2 percent through FY 2019. But Gaming Control Board figures suggest otherwise. In FY2015/16 slot revenues topped $2.39 billion. While the revenue stream remained somewhat constant in the subsequent years, the revenue for FY2018/19 decreased to $2.38 billion.

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Global Gaming Business JULY 2021

Still, when it comes to casinos, the comparison with skill games is like comparing oranges and cherries.

“The typical skill game player is not a casino patron. Going to a casino is a different type of experience,” Zaleski says. On that point, Golden Entertainment’s Sartini agrees. Casinos offer an entire package while VGTs offers convenience.

The casino industry has helped investigators understand the difference between regulated and unregulated machines, connecting local prosecutors with expert witnesses and more, Feil says. “We also are striving to educate consumers and the media about legal gaming, so they understand the consumer protection and tax revenue benefits of legal, regulated gaming.”

Joe Billhimer, executive vice president, Cordish Gaming Group, which runs Live! in Philadelphia, says skill games and expansion of VGTs pose a threat to Pennsylvania’s gaming industry, cannibalizing the existing market.

“We would support legislation that makes clear slot machines, as defined in Pennsylvania’s Gaming Act and which includes skill games, are only legal in licensed casinos,” Billhimer says. “The integrity of gaming in the commonwealth has been maintained through some of the most stringent regulations in the country, and as such has resulted in more tax revenue than other businesses combined in Pennsylvania.”

Pace-O-Matic wants to see legislative efforts aimed at regulating its industry, not eliminating it. “Allow us to provide additional tax revenue, at a fair rate, based on the revenue our games generate. We also welcome additional enforcement and penalties aimed at cleaning up the illegal games and bad actors,” Goldean told a Senate committee.

But if regulated, Pace-O-Matic favors a tax rate close to that of table games at 16 percent rather than of slot machines in a state that charges online slots and sports betting at the slot tax rate.

“Our games do not rely on the utilization of random number generators and compensating algorithms to control the ultimate result of the game play.

The play is slower and requires skill, much like a table game at a casino,” Goldean says.

State Senator Robert Tomlinson, primary sponsor of SB 212, wrote there is no consumer protection provided through monitoring, to assist problem gamblers, regulate payout rates or ensure collection of taxes.

Sartini sees VGTs as an additional alternative avenue for much-needed revenue for the commonwealth. “An expansion of the regulated VGT industry would add that chance,” he says.

Prater was more blunt in his assessment. “Casinos are definitely on board with getting rid of unregulated games and machines that siphon off revenue from their locations and tax dollars for the commonwealth. But ultimately, there needs to be clarity from both the legislature and the courts so the tools are in place for law enforcement to eliminate the scourge of unregulated so-called skill games once and for all.”

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Interblock Stadium at Live! Philadelphia’s R Bar

A Place at the Table A convergence of industry changes including Covid-19 have turned ETG stadiums into a growing phenomenon—one experts say is here to stay

By Marjorie Preston

T

he new Live! Casino in Philadelphia features an increasingly popular type of gaming venue: electronic table games (ETGs) in a stadium setting. This setup at the R Bar is on steroids: a total of 74 ETGs or “dealer-assist” Interblock games, including 17 at the bar and the rest in a semicircle with big animated screens, plush seating and a builtin party atmosphere.

Clearly, there’s no waiting. Dozens of people can play at a given time, and just a handful of live dealers call the action for everyone.

Therein lies part of the appeal of the ETG stadium, both for guests and operators, says Mike Cray, vice president of property operations for the Cordish Companies’ Live! casinos.

“First of all, the setup is absolutely gorgeous, with the TVs and screens, and this is a lower-limit kind of table game, which makes it attractive for anyone to come in there.” Some casinos have opted to raise their yield on table games and minimum bets in the $25 range, which won’t fly with price-conscious players. “I keep the Interblock terminals at a much lower limit,” says Cray, “and it creates a lot of buzz.”

But that’s not all. Operators can fit far more ETG terminals on the floor than tables, and fewer dealers mean lower costs and fewer concerns about labor shortages.

“I can pretty much run the whole setup, 74 units, with only four dealers, so we’re probably talking 20 FTEs (full-time equivalent),” says Cray.

“This stadium-type gaming is going to become more popular just because of the efficiencies of what you can offer and the money you can save on labor.”

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Great Leap Forward Electronic versions of table games originated in Europe in the 1990s, then migrated to Asia and the U.S., finding homes in smaller casinos that wanted to maximize the value of their table segment, as well as markets that didn’t yet offer traditional tables. In 2015, industry leader and ETG pioneer Interblock released a study saying enthusiasts of the games “play more often and longer, have larger gaming budgets, are likely to spend more, and are more likely to play games across the entire operation.”

“Covid-19 forced a lot of traditional table game players to try an electronic form of their favorite game. That really catapulted the segment to a growth rate and acceptance level that was far greater than pre-Covid.”

—John Connelly, CEO, Interblock

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“In my experiences, players are readily intrigued by ‘new.’

We’re seeing players gravitate toward ETGs due to their novelty and multi-game offerings.”

—Paul Baskerville, IGT Director of Product Management IGT Dynasty Stadium

In the U.S., says Interblock CEO John Connelly, ETGs reached a new level of popularity right before the viral outbreak.

“It didn’t happen overnight; it was an evolutionary process over the past 48 to 60 months, but really hit a turning point in the back half of 2019.

Globally, our company began to see some of the highest growth trends we’d experienced in 25-plus years on that particular area of the floor.”

That momentum was interrupted by Covid-19, and the ETG segment “suffered like all other products and segments of the floor,” says Connelly.

The company hustled to change up its hardware to allow for more flexibility on the floor—a good move, he says. “We saw a tremendous surge in ETGs due to the ability to do social distancing and provide a safe environment for players and dealers.”

Even as casinos reopened, many table games remained off-limits. And in some ways, the crisis kicked off a groundswell of new interest in ETGs. “It forced a lot of traditional table game players to try an electronic form of their favorite game; that really catapulted the segment to a growth rate and acceptance level that was far greater than pre-Covid,” says Connelly.

And today, he adds, that momentum has only increased. “Quite frankly, with the reopening of casinos and live tables, many of us expected a slight slowdown in the revenue per day on those table games, but actually, it’s been the opposite.” He says the performance of the products in the U.S. continues to trend up month over month, despite the fact that many live tables have completely reopened.

“We’re still in the early days, but it seems Covid created a new category

“Stadium-type gaming is going to become more popular just because of the efficiencies of what you can offer and the money you can save on labor.”

—Mike Cray, Vice President of Property Operations, Live! casinos

of player and expanded the existing category of players to a level we weren’t anticipating,” Connelly says. “The capacity to help operators adhere to social distancing protocols, reduce labor costs and lesson dependency on cash and chip handling instantly elevated their relevance.

“The segment was on a growth trajectory before Covid-19, and the pandemic amplified the trend. It was the catalyst that really exploded the understanding of this segment of the floor.”

Boom Time Paul Baskerville, director of product management for gaming technology provider IGT, has witnessed the same phenomenon. “This upward trajectory started before the pandemic, but the events of the last year certainly accelerated the momentum,” he says.

In addition to flexible seating, stadiums let operators offer table game content from nearly any location on a gaming floor, and the games are easier to clean.

“Operators and players also appreciate the rate of play that ETGs offer. ETG players can enjoy multiple games at once, not having to wait for the dealer as they would in a live setting. This increases the rate of play and reduces the per-hand labor costs.”

In 2018, when IGT installed ETGs at Resorts Casino in Atlantic City, it stated that when a live dealer works in conjunction with ETGs, one dealer can deal 150 hands an hour to multiple players, for up to 1,800 bets an hour, or more than seven times the bets taken by one dealer at a physical baccarat table.

Baskerville says the stadium setup appeals to players across demographics of generation, gender and skill level. “In cases where a casino promotes an ETG stadium like a ‘party pit’ or something similar and creates an atmosphere that may be appealing to younger demographics, then yes, I think we can expect a potentially younger demographic to be attracted to that space. As I visit customers across the U.S., I typically observe a wide range of players, novice to experienced, across all demographics.”

He adds that a stadium configuration creates “a destination on a casino floor… defining a space with a signature look and feel and creating a point of interest for casino patrons.”

Importantly, he adds, ETG terminals enable casinos to offer a variety of games on a single unit. “In my experiences, players are readily intrigued by ‘new.’ We’re seeing players gravitate toward ETGs due to their novelty

JULY 2021 www.ggbmagazine.com

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“There’s a level of separation, where players can place their bets somewhat in private; that removes some of the etiquette questions that new players particularly find intimidating about table games.”

—Laura Sims, Product Manager, Aruze Gaming

Observers say electronic games are increasingly the preferred choice of patrons who don’t want to wait for a seat at the table or sit shoulder-toshoulder with other players.

and multi-game offerings. I don’t view the growth in the ETG segment a by-product in any reduced interest in slots, but as a way to drive growth and add innovation, choice and convenience to a casino floor.”

How have customer preferences developed as far as RNG-based products versus live-dealer products?

“We’ve found preferences for RNG versus live-dealer products to be based on geography and the casino’s core clientele,” says Baskerville. “In general, at more resort-casino properties players tend to gravitate more towards live-dealer ETGs, given that they’re more like traditional table games. At more regional, locals-based casinos, the trend is often more toward RNG-based products.”

Bottom line, he says, “Our customers have more ETGs on their gaming floors today than they did a year ago. They’ve evolved into a cornerstone of the modern-day casino environment and are an essential element, just as video poker, slots and many other casino mainstays.”

The same dynamic continues in Asia, where the segment was already popular with up to 20 percent of floor space reserved for ETGs. Observers say electronic games are increasingly the preferred choice of patrons who don’t want to wait for a seat at the table or sit shoulder-toshoulder with other players. Weike Gaming Technology Sales Manager Andrew Lim recently told GGRAsia that he’d seen heightened interest in ETGs in Macau, Singapore and Vietnam, and the stadium setup also has proven practical.

“We foresee this trend may continue during and even beyond this pandemic, as players get more used to playing on the ETGs, and operators also see the many advantages associated with ETGs despite higher initial setup cost,” he said.

Interblock President for Asia Pacific Michael Hu told the news outlet operators are looking for “creative ways to adapt existing technologies for new uses, such as integrating ETG stadiums with live table games” in a hybrid he refers to as “community games” featuring baccarat, blackjack, roulette and sic bo.

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Global Gaming Business JULY 2021

Help Me If You Can Moreover, the dynamics of the game are drawing slot players too, says Cordish’s Cray. “You have to remember when slot players play video poker, they have roulette and blackjack in those terminals, and a lot of them are going over to the Interblock stadium, too. Of course, existing table game players enjoy ETGs especially when live table games are a little bit higher on the minimum side. You can get the same outcome at a lower price.”

Laura Sims, product manager for game developer and manufacturer Aruze Gaming, points out other advantages of dealer-assisted ETGs, in and out of the stadium setting. “Players like the trust factor: there’s a person involved. They can see physical cards and see the dealer, and that interaction is something they value. And for some players, the barrier to entry isn’t as intense as in a traditional table game.”

With each player at his or her own terminal, there’s “a level of separation, where they can place their bets somewhat in private; that removes some of the etiquette questions that new players particularly can find intimidating about table games,” says Sims.

Features like EZ Help on Aruze’s Roll to Win electronic craps games make the learning curve even easier. “Once it’s turned on, you can press any location on the screen and it will tell you everything you need to know about placing bets—what are the odds, what’s the pace of the game, how you get paid,” says Sims. “It’s on the main game-play field, not buried in help screens. It makes it so much easier to not just play the game but to learn it, love it and basically become a lifelong player, which is what we, of course, were hoping for.”

Fred Nunez, director of product management for Aruze, likens the stadium setup to a sportsbook, “where you can go in and place your bets and kind of watch what’s happening on other screens. It gives you that variety and you’re still around people. You still have the trust factor of the live aspect.

I think that’s what is shepherding the growth of stadium seating in the U.S.” He agrees that these games in a stadium configuration appeal across demographic categories. “I was at an off-Strip locals casino in Nevada, and as I walked by the pit earlier, there was an older demographic. About two hours later, I started seeing a lot more younger players on that stadium configuration. So you’re getting a lot more growth in the younger demographic, but there’s a market for both the younger and the older player. I think it’s going to grow across demographics in general.”

Connelly says the segment has room to expand. “Considering that less than 1 percent of the North America casino floor is currently ETGs, I believe there's a long way to go.”

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Next-Level Customer

Engagement Touching your guests on a continuous basis creates loyalty and excitement

A

By Julia Carcamo

s we planned this year’s Casino Marketing Boot Camp, the notion of engagement was ever-present and became the unofficial theme of this year’s discussions. As a brand marketer, I see the importance of engagement. In a conversation with Engaged Nation’s Jerry Epstein, he talked about the concept of “continuous engagement.” That made me stop and think.

We often try every trick in the book to engage customers. We measure engagements by the number of likes our social posts get. We measure engagement with the results of guest satisfaction surveys.

Moreover, if you read any of the marketing pundits, they will tell you engagement is the goal. You can achieve the elusive engagement by following some easy 300-step formulas and investing in the latest tools. We’re often left with a ton of ideas with little understanding of how to put them into play (or worse, knowing if we even should).

Engagement has to be more than a thumbs-up or star. What happens next? How do we maintain a cycle of engagement so that it is continuous?

How do we engage with our customers and related audiences in a manner that keeps our brand top of mind, always and continuously? Engagement, in and of itself, will always be a great goal, but continuous customer engagement is the next level.

As you can well imagine, there is a wide range of definitions for the term “customer engagement.” The common elements seem to be about the interactions your customers have with your brand. If you look at it in terms of interactions, you can see there is a multitude of ways to engage—and disengage— in a continuous fashion. Continuous engagement is a system of interpreting and evolving a comprehensive understanding of customers to engage them more productively at any point (perhaps all points) of their journey.

Some customers will choose to engage once, and if they find that interac32

Global Gaming Business JULY 2021

tion less than optimal, they will move on. Our core customers choose to engage over a series of interactions. For many of us, direct mail is the tool of choice to create continuous engagement. I want us to use all of the tools at our disposal to create a cycle of continuous engagement with all of our customers.

Why Does the Notion of Engagement Matter?

There was a time when acquiring customers was one of the most important in our casino marketing plans. Mature markets have lessened the impact of new member programs. We can all agree that acquisition will not be enough to grow our businesses in any sustainable fashion.

We know retention and potentially carving out a larger share of a customer’s wallet is the key. Both must be done in a budget-efficient manner to bring more of their spending to the bottom line. Identifying avenues to create a connection with customers between visits can help us achieve those goals and grow in a sustainable fashion. Customer visits will not be wholly dependent on a reinvestment amount, but rather a reinvestment of effort.

Customer relationship management is nothing without customer experience; in turn, customer experience cannot exist without some level of customer engagement. Moreover, as customers have these positive moments, they are more likely to become loyal and possibly brand advocates.

From loyalty come profits. According to Hall and Partners’ “Engager” study, up to 66 percent of a company’s profits rely on effective customer engagement. Companies that improve engagement increase their cross-sell and upsell revenue.

Some may mistakenly lump customer engagement and experience notions into one proverbial bucket, thinking them the same. They are not.

Customer engagement is rather the result of a great experience.

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How do we engage with our customers and related audiences in a manner that keeps our brand top of mind, always and continuously? Engagement, in and of itself, will always be a great goal, but continuous customer engagement is the next level.

How Can We Keep Customers Continuously Engaged?

We are all familiar with the traditional “push” model of marketing. We sit on our couches and are rudely interrupted in our binging with a commercial. Push.

We open an app and see a pop-up ad at the top of the screen. Push.

On a drive to the grocery store, we see billboard after billboard after bus wrap. Push. Push. Push.

Engagement marketing instead pulls people in. By telling stories that interest consumers and creating conversations addressing their interests, brands and consumers are bonded into deeper relationships.

“If you only talk to customers about what you sell them, they have the option of tuning out,” says Mohan Sawhney, clinical professor of marketing and McCormick Foundation chair of technology at the Kellogg School. “The motto for engagement marketing is, ‘Ask not how you can sell, but how you can help.’”

The Rise Of Social Media The growth of social media and its importance, not only in our marketing efforts but also in our customers’ lives, has been stunning. Can you think of any other media outlet that has come on the scene and overtaken the No. 1 spot for attention in so quick a time? Social media has become an essential element in any marketer’s toolbox. Even in light of its constant metamorphosis, social media is not to be ignored. Today’s consumers expect to have a connection with their favorite brands. Some say the connection may be what makes the brand a favorite.

Prioritize Connections Over Conversions The notion of conversations goes beyond a popular Facebook post. To successfully engage with customers, we must prioritize connections over conversions.

This doesn’t mean that direct mail is less important. I think we can all agree; reinvestment is what makes our efforts successful, but I have often wondered if we were missing opportunities in this tool to create a long-term connection that

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The motto for engagement “marketing is, ‘Ask not how you can sell, but how you can help.’ ” can overrule the number on the coupon or the restrictions we impose on offers and rewards.

Small changes like personalization signal “We know you.” This appeals to the most basic human element in all of us—the desire to be seen.

Furthermore, we have access to large amounts of data points we can use to create near-personalized experiences for a large swath of customers.

• The inside scoop Casino customers love to know they have access or knowledge of the inside scoop. If they didn’t, we would never consider four-plus tiers or “secret tiers” to our player’s club programs.

Events like slot pulls that offer key customers the first chance to hit the jackpot on a new machine are simple and easy ways to add additional opportunities for engagement. Because these go beyond special lines or having your car left “up top” in valet, these moments can create a level of emotional connection akin to family memories.

• You know me In one of my first jobs with Harrah’s Entertainment (now Caesars Entertainment), we were trained on the five key elements our target avid-experience player customers wanted. On that list was that they wanted to know that we knew and understood them. Truthfully, this wasn’t earth-shattering because, as consumers, don’t we all want this?

A transactional connection turned personal connection then further evolved into an emotional connection will always win the day. Always remember to introduce yourself. Be interested in them by asking questions.

Remember dates and events that are important to them, not just because we have a standard mail program that sends them a card or email but also because we know them and have a connection.

•Create a dialouge Dialouge is one of the most valued elements in an engagement strategy. Allowing customers to weigh in on changes or additions and even providing an avenue for them to socialize and talk among themselves can increase and maintain a high level of engagement. When Nike shifted its “bringing out the athlete in you” focus from traditional advertising to personalized customer service, they created online communities that allowed customers to access and share workout advice. The Nike+ platform made it easier for customers to track and share their fitness goals. Additionally, we must adopt an “always-on” mentality for these communities. This may require rethinking staffing and assignments or investment in technology. The benefit of this approach is that we’re able to head off impending PR disasters that can go from incident to viral in mere seconds.

Solve for Pain Points All of these aforementioned steps can provide the insight we need to solve for pain points. Without those steps, we can find our time wasted curing symptoms because we may not understand the actual problem.

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—Mohan Sawhney, Clinical Professor of Marketing and McCormick Foundation Chair of Technology, Kellogg School

Homegrown Brand Ambassadors We have always recognized team members as brand ambassadors. They are the front-line faces that greet customers every day and help them navigate our operations for a great experience.

As influencer marketing is becoming an essential part of our marketing, many operators recognize the increased value of team members as influencers themselves. Still, to grow these influencers, we must ensure they are equally (if perhaps not more so) engaged.

The goal is a work environment where team members not only do their work; they do so with passion. Having that kind of focus on the back of the house can drive results.

We have probably all experienced companies we’ve worked with strive to achieve “employee engagement.” They might use surveys (among an assortment of tools) to gauge engagement, using those results to inform their next steps. Unfortunately, most tools used tend to be flawed as respondents believe (right or wrong) answers will be used to impact their advancement or role. As a result, answers can be skewed to what they may think management would like to hear.

Much like the customer continuous engagement model, a similar application for the back of the house can stimulate interest, creativity, motivation and dedication.

Continuous Engagement Traits Companies that practice continuous customer engagement generally exhibit some common traits.

• They eliminate barriers and break down the silos that will block how to holistically best serve the customer.

• They take the term “omnichannel” seriously. More than a marketing term, they create systems that, with the benefit of contextual customer insight and decisions, allow them to listen and interact with customers.

• More importantly, they are authentic in their customer focus. They understand that a win-win situation is good for all.

• Finally, they live with a clear set of values, and those values infuse the entire operation.

Ultimately, the best way to ensure continuous engagement is to be true to the purpose we have as casino operators—to provide entertainment, whether online or in person, and to always show our brand personalities in our communications.

Julia Carcamo is president and chief brand strategist at J Carcamo & Associates.

She writes on a variety of casino and general marketing topics, including the book Reel Marketing, and established the Casino Marketing Boot Camp. Reach her at Julia@jcarcamoassociates.com.

GAME CHANGER. Prepare to catch a wave. Foundation delivers instantaneous, real-time data from every player interaction on your floor. Real-time data that you own and control, something your current casino management system can’t even dream of. With Foundation, casinos can message or bonus players at the slot machine or on their phone. All while simultaneously enabling a cashless, single-wallet solution to players via their mobile device. This isn’t the future. This is now.

The game has changed. Will you?

FOUNDATION. GAME ON. Visit AcresManufacturing.com to schedule a demo and learn more.

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MAKING MY POINT

Do You Really Know Why?

The greatest mysteries of the world are often impenetrable

T

hose performing the first autopsy in human history, after skilled and diligent examination of the two dozen stab wounds crisscrossing the back and torso of Julius Caesar, correctly surmised that yes, the Roman emperor had indeed died of excessive blood loss, and not from uh, well...

Dysentery?

Malaria?

A broken heart?

File this under: No duh, Brute.

Since then, despite what a generation of watching CSI has told us, figuring out the cause of death isn’t always quite so obvious.

At least in the boardroom if not the morgue.

Because exactly why do some things in our world—products, initiatives, acquisitions—perish, while other things—businesses, careers, cultures—live, prosper and procreate?

You may think you know, but do you really know? Or do you just know that you think you know you know?

You know?

For example, Lucky Dragon Casino in Las Vegas was a commercial failure. No one disputes that, especially the investors that saw their money evaporate like a blast of aerosol in the desert heat. But why? It was new. It was nice-enough looking. It was right off the freeway, within walking distance to the Strat and the Sahara-then-SLS-now-Sahara-again. It catered to Asian players with rows of mini, midi and big baccarat tables amid a sea of gold and red decorations. It had Chinese dealers, Chinese restaurants and even Chinese signage.

It was as close as you could get to Macau without having to jump on a hydrofoil and cross the South China Sea. And yet, it opened and closed in 18 months.

So again… Why? Hold that thought for a moment and let’s look at the flip side.

Take a peek at the Eilers slot rankings this month. Do you really know why some games index at three times house average while oth-

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By Roger Snow

ers can’t win enough to pay for the electricity that powers their eproms? Slot companies in aggregate spend $1 billion a year in R&D, employ some of the smartest and most creative men and women you’d ever want to meet, and yet, the overwhelming majority of titles come and go without leaving much of an imprint.

How is that possible?

As executives, “actual or aspiring,

you spend a lot of your time predicting the future. You’ll never see it in a job description, but it’s the most important skill you can possess.

”

Because if you knew, if you could really deconstruct commercial success into a formula, a recipe that you just had to follow over and over and over, then every game would win three times house average. Which would be great if it were not also mathematically impossible.

Because if they all won at three times house average the average would be higher, and then…

Ah, forget it.

As executives, actual or aspiring, you spend a lot of your time predicting the future.

You’ll never see it in a job description, but it’s the most important skill you can possess. Actually, it’s more superpower than skill. Where to invest your company’s time and resources; and just as importantly, where not to. You make bets like this every day, and the better you are at betting, the better your chances of

continuous betterment.

Sometimes to look forward, it helps to look behind you. Do this: Take 15 minutes and devote thoughtful reflection on something you did a few years ago, and really— and honestly—examine the outcome. Maybe it’s a company you bought that promptly pooped your hand. Maybe it’s a job candidate you didn’t hire that went on to great heights elsewhere. Maybe it’s a marketing promotion that crushed all expectations. Maybe it’s some presentation you gave that people are still talking about.

Channel your inner M.E. and find out WTF actually happened. And don’t just take your word for it. Grab a few in-the-knowsters and pry out their perspectives, and keep going until you’ve, like Tiger Woods circling a birdie putt, looked at it from all angles.

Leave nothing to chance.

Want some fodder for such convos, beyond that unlucky dragon and the top of the slots? Here’s a short list: • Why continuous card shufflers, those that recycle cards back into the machine after each round, are all the rage on blackjack everywhere in the world… except North America?

• Why, if players love electronic table games—which they no doubt do—have they up until now avoided e-poker tables like they were covered in Covid dust?

• Why some branded slots (Monopoly, Wheel of Fortune, Crazy Rich Asians) are massive hits, while others (names redacted to protect the innocent) are massive hits with an “s” in front?

• Why do players accept 6-to-5 blackjack and triple-zero roulette?

OK now. Talk amongst yourselves.

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.

CALL FOR NOMINATIONS AGEM Continues Memorial Awards to Honor Legacies of Jens Halle and Peter Mead Sixth Annual Jens Halle Memorial Award Honoring Excellence in Commercial Gaming Professionalism

A longtime Bally and Novomatic executive in Europe who was most recently CEO of Merkur Gaming based in Florida, Jens died on May 20, 2015 at the age of 57. He will not be forgotten and the Association of Gaming Equipment Manufacturers (AGEM) is asking for nominations that meet the following criteria:

Sixth Annual Peter Mead Memorial Award Honoring Excellence in Gaming Media & Communications

The founder and publisher of Casino Enterprise Management magazine, Peter died in Las Vegas on June 24, 2015 at the age of 54. He will not be forgotten and the Association of Gaming Equipment Manufacturers (AGEM) is asking for nominations that meet the following criteria:

“Nominees must have experience working in the mainstream “Nominees must have experience working in the global gaming media, gaming trade press or individual gaming company PR/ supplier sector for a minimum of 10 years and possess the communications for a minimum of 10 years and possess the following traits and qualities that Jens displayed throughout his working life: Professionalism, business success, attention to following traits and qualities that Peter displayed throughout his detail and timely follow-up; working life: Quality reporting a willingness to ‘go the extra and communication with an mile,’ both figuratively and emphasis on personal contact literally; a sense of humanity to generate ideas and gather in an oft-times cutthroat information; taking risks and business; a recognition of the questioning the status quo; importance of a handshake challenging the industry to consider new ideas; and and a fair deal for all; and a Joni McMonigle (accepting on behalf of the late Bob McMonigle) and dedication to the health of David Orrick, honored as 2020 recipients during virtual G2E last year. identifying trusted partners to improve the overall product.” the industry as a whole.”

View the full video presentation at: AGEM.org/News

Do you know of someone who exemplifies these qualities? Nominate them! All nominations must be between 300 and 700 original words and submitted via email to AGEM Executive Director Marcus Prater at Marcus.Prater@AGEM.org and received by the August 31, 2021 deadline.

Winners will be honored during the Global Gaming Expo (G2E) in October. ©2021 Association of Gaming Equipment Manufacturers (AGEM).

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Development and acceptance of digital wallets has increased in the wake of Covid-19

BY DAVE BONTEMPO

Instant Funds N

ever mind the billfold, the compartment for credit cards or family pictures. Wallets become ever-more sophisticated. And they don’t have to sit in one’s pocket.

The new use of digital wallets (aka e-wallets), a vehicle to store, activate and replenish funds, gains an ever-sharp edge in the gaming industry. Operators seek to provide the fingertip money-managing convenience customers enjoy in the world outside casinos. This effort has been prominent in recent years, entailing different stages to upgrade funds accessibility.

Expanded ATM versatility, more kiosk functionality and now the proliferation of e-wallets highlight the industry’s goal for maximum speed and convenience.

Integrated Magic IGT has forged a major footprint in the digital wallet sector. Its Resort Wallet with IGT Pay provides a completely integrated network that connects funds, a payment vehicle and a place to maintain and utilize money.

Customers gain a new method to manage finances, while operators can assess whether bonus awards linked to deposits are effective.

“We are the sole provider of a completely integrated solution, which offers unique advantages in many areas, including bonusing,” says Jacob Lanning, payment consultant for IGT cashless technology business development. “We provide the entire system, all the way to that external funding gateway. Most other casino system providers only provide the system and then have to integrate with a third party to provide access to that banking network.

“There are numerous advantages both for the player and the operator.

Among them, we have a deeper understanding of the transactions. That allows us to create bonusing opportunities that will drive spending and be tied in with player behavior. Companies often provide bonuses for deposits, but most don’t have the ability to see whether they were used for a transaction on the property. We have the ability to make the deposit bonus conditional for a wa38

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gering transaction.”

Patrons enroll for the loyalty club and establish a cashless account at a given property. They can fund that account at the facility or by using IGT Pay to connect their bank, debit, credit card and e-wallet information with Resort Wallet. Players can choose cashless to fund slot play, table games, sports betting, and use at retail points-of-sale across multiple properties in the same enterprise. IGT offers two flexible variations of its cashless offering: cardless and carded.

For Cardless Cashless, using an app on a mobile device to access a Cashless Wagering Account, players load cash into the account from either the casino cashier, kiosk, or a slot machine, then tap their smartphone on a slot machine or table game to card in. They can then transfer funds between slot machines onsite, as well as among a casino’s sister properties.

In Carded Cashless using a casino-branded loyalty card, players load cash into a secure Cashless Wagering Account from either the casino cashier, kiosk, or any slot machine, and access those funds from any slot machine, electronic table game, or kiosk using the card.

For players, the benefit is immediate. There are no interruptions from the game to access funds from an ATM. IGT has targeted efforts in this sector to match extensive research conducted with players. It determined that 70 percent of its respondents expected to use cashless in their everyday lives and more than 50 percent wanted to see this capability at casinos, Lanning says.

Andrew Karonis, IGT’s vice president of payments, indicates that the IGT Pay venue has helped fuel a stratospheric rise in use. “We have had this IGT Pay gateway live globally since 2013 and in the U.S. since 2018,” he says. “We have been serving lottery, iGaming and the sports betting space.

With sports betting, we not only anticipate the volume of wagers increasing, but the average transactions are much higher in the sports-betting space.

“IGT also provides payment services if the client wants to use them. We

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“We have been serving lottery, iGaming and the sports betting space. With sports betting, we not only anticipate the volume of wagers increasing, but the average transactions are much higher in the sports-betting space.”

—Andrew Karonis, Vice President of Payments, IGT

can help them with contracting with service providers, reconciliation and funds management risk. We can offer that either as an advisory service or part of a turnkey solution.”

Wallets Galore Everi Holdings introduced cashless technology in 2017 and made its digital initiative clear to the industry with the introduction of a cashless wagering feature called QuikTicket. Since then, it migrated to a mature offering that provides a new funding choice through a fully touchless, cashless mobile experience.

The flexible and multi-dimensional CashClub Wallet allows players to store multiple payment methods, easily move funds in and out of the casino or online across sports betting or social casinos, and manage their spending limits, helping to support responsible gaming.

The company set its sights on giving patrons the same ability, comfort and convenience to load, retrieve and unload funds that they experience with similar funding applications like a kiosk, ATM or at the casino cage. Everi has two functioning digital wallets in the Florida and Oklahoma gaming markets, and expects to see this trend continue across other gaming locations throughout the world, according to Darren Simmons, executive vice president and fintech business leader for Everi.

The rollouts continued last year. Everi initially launched the WinStar Wallet, powered by its CashClub Wallet, in December 2020 at WinStar World Casino and Resort in Oklahoma. The CashClub Wallet mobile solution allows for cashless and touchless funding of electronic game play throughout the casino floor.

The WinStar Wallet also is available for all of WinStar’s resort amenities, including all food and beverage and retail outlets. Everi also launched the CashClub Wallet at Hard Rock International, in conjunction with the Seminole Tribe of Florida. The Seminole Wild Card Wallet is available at all of their gaming locations in Florida, including Hard Rock Hotel & Casino Hollywood and Seminole Hard Rock Hotel & Casino in Tampa.

CashClub Wallet provides casino operators and their customers with a flexible, cost-effective, secure payment method on the casino floor. Creating a contactless environment that provides an alternative to cash, the Cash-

Club Wallet mobile application gives gaming patrons the ability to deposit funds into their digital wallet at their convenience—while they are on site or away from the resort, via a bank card or directly from their checking account.

Patrons can then access these funds for use directly at the game, enabling the casino to offer a fully touchless solution. At the conclusion of play, patrons can then move funds back into their digital wallet and either hold the funds in the wallet for future use or electronically send the funds out of their digital wallet and back into their bank account.

“The process to load funds onto the CashClub Wallet app is simple,” Simmons says. “Download the application on Apple Store or Google Pay. From there, the patron follows prompts to enter and verify personal information. There is a two-step verification for security measures, and you are required to create a personal identification number (PIN).

“Verifying personal information allows the casino operators to identify the customers when they are opening up an account and ensure that standards are met when conducting transactions within the casino. At the same time, the wallet is connected to the player’s card from the casino. This allows the patron to use the cashless functionality on the casino floor by just inserting the player’s card into the slot machine and authenticating with PIN.” Once an account is verified and created, funding can be initiated with credit/debit cards or via ACH withdrawal from the customer’s banking institution, he adds. Cards can be entered and maintained within the application.

Once entered, select the account you wish to withdraw from, enter the desired amount and then funds are instantly available for casino play. This is for both online and on the floor of the casino.

The Mobile VIP Global Payments Gaming Solutions’ VIP Mobility is the first solution of its kind to bring a modern and digital approach to gaming, according to company President Christopher Justice.

“Depending on their unique situations and preferences, today’s consumers are becoming increasingly reliant on digital and online channels in their everyday lives, including accessing money,” Justice says. “As the only solution of its kind, VIP Mobility enables casinos to take the lead position in the industry by providing a more secure, more enjoyable gaming experience to their guests—all hosted within the casino’s existing infrastructure.”

The company launched VIP Mobility in May with an implementation pilot program at Viejas Casino & Resort. VIP Mobility is live today and the application is available for Android and iOS devices, Justice indicates.

Unlike traditional forms of wagering and betting, the product provides a seamless player experience from funding through cash-out, he says. With VIP Mobility, patrons can quickly create digital TITO tickets, easily pair their device to any slot or table game by scanning a QR code and reload funds right from their phone. Once play is complete, guests can immediately retrieve JULY 2021 www.ggbmagazine.com

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Sports and Cashless

Sightline accommodates the new sports betting sector

I

ndustry visionary Joe Pappano positioned his company to embrace the emergence of cashless wagering and legalized sports betting several years ago.

The Sightline Payments CEO has ensured that the establishment has a multi-faceted vehicle to accommodate the new business.

Play+ is Sightline’s flagship consumer solution for seamless and secure pay-and-play with more than 1.5 million enrolled accounts active in 39 states for use in the online sports betting, online casino, online lottery and horse racing markets.

“Along with our partners at Worldpay, Sightline has led the way with financial institutions and card networks to increase acceptance of gaming transactions through education on the robust regulatory environment in legalized gaming,” Pappano says.

Unlike traditional wagering accounts and digital wallets, Play+ creates a debit account for users to be able to easily and quickly transfer money to and from their wagering accounts, providing easy access to funds anywhere a Discover or Mastercard is accepted.

Pappano says the company launched its original Play+ offering in 2013, when New Jersey opened its online casino market.

“The current iteration of Play+ launched earlier in 2021 as part of Sightline’s SPAN network upgrade, which provides the ability to move funds between your Play+ debit account and your wagering account of choice,” he says. “The newest iteration of that product ties the digital assets and brick-andmortar casinos together to create a true omnichannel environment where customers can use the same funds at their online sportsbook or online casino, or in person at that same company’s integrated casino resort—both at gaming and non-gaming elements of the resort—and be able to use those funds anywhere that a credit or debit card is accepted.”

With integrations into all major casino management system providers, casino mobile provider Joingo, point-of-sale systems including Shift4 and Freedom Pay, and with financial services leader NRT, Sightline provides an end-to-end product.

“For a brick-and-mortar property, a customer

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would download the casino app. From there, select ‘Fund Account’ and be able to create a Play+ account,” Pappano explains. “Our solution then conducts the appropriate know-your-customer (KYC) requirements to ensure you are who you say you are prior to activating this account.”

The patron then receives a casino-branded debit card which can be used at any location that accepts Discover or Mastercard, which is loaded with the funds he deposited.

“The newest iteration of that product (Play+) ties the digital assets and brick-andmortar casinos together to create a true omnichannel environment.”

—Joe Pappano, CEO, Sightline Payments

funds, ensuring play is never interrupted to get cash.

“As the only omnichannel funding solution in the market, VIP Mobility connects brick-andmortar and online gaming environments to deliver a frictionless user experience, from registration to cash-out,” Justice says. “Once registered, VIP Preferred members can game at casinos throughout the country or switch to online experiences without having to inconveniently re-register their account.”

The company continues to build upon lessons delivered from the pandemic.

“Prior to the that time, patrons were adopting contactless payment options at a rapid pace across all aspects of their daily lives,” Justice says. “However, COVID-19 accelerated the want and need for contactless payment adoption as patrons gravitate toward safer, mobile-driven options that meet their needs and expectations.

“We expect these behaviors to remain even after the pandemic subsides, as patrons have grown accustomed to the cashless gaming experience. As such, land-based operators will need to continue to provide—and enhance—these contactless and cashless services after the pandemic and moving into the future.”

The Personal Banker At a casino slot machine, the player would transfer funds from the Play+ account to the casino wagering account via the CMS that property utilizes. The customer can quickly transfer funds to and from different games he wants to play using a mobile device.

The player can also use his mobile device to receive chips at a table game, through a variety of solutions including NRT’s Visual Limits platform or Lily tablet, Aristocrat’s Oasis solution, or Scientific Games’ table game solution. Customers can cash chips in at the table to transfer money back to the Play+ account.

“The Play+ solution provides instant access to funds for players and offers them true fungibility with their deposits,” Pappano says.

A patron would also be able to use those same funds for online wagering, creating a true omnichannel experience.

Sightline is positioned to serve the continued growth of sports wagering.

—Dave Bontempo

For several years, Aristocrat Gaming has used a digital method for managing slot play called Personal Banker (PBT), which includes credits, free play, and promotional dollars. Covid accelerated the use of cash as another extension of this contactless bucket of funds allowing the guest to have a more frictionless experience.

Its current application has been around more than a decade, but there’s a twist.

“What’s new is our enhancement to extend PBT, our mobile management of these funds and the ease of using a third-party funding source to draw down additional funds, which has accelerated through the use of a mobile application in the recent years,” says Cath Burns, executive vice president, customer experience for Aristocrat.

“Our solution is elegant, and the guest experience has that familiar easy-to-use touch,” Burns says. “Aristocrat’s mobile offering maintains the perfect balance of ease of funds and responsible gaming to ensure the guest has a positive, memorable experience.

“Our competitive advantage comes from our

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“Our competitive advantage comes from our understanding of players’ behavior with our high-performing games, our extensive experience working closely with tribal operators, and our online gaming experience where all funding has been cashless.”

—Cath Burns, Executive Vice President, Customer Experience, Aristocrat

understanding of players’ behavior with our high-performing games, our extensive experience working closely with tribal operators, and our online gaming experience where all funding has been cashless. Combined with our focus on customer experience, this should result in higher adoption by players and operators.”

Burns predicts rapid waves of innovation for the system, which has new features and functionality for its operators around retail, table games and iGaming.

“We are expanding our cashless/e-wallet capabilities to take advantage of these developments globally as we expand our CX offerings into new markets and territories,” Burns says.

Burns adds that when a customer registers for a new player account, either through the club or after downloading a branded application, he or she as the user will be prompted to use the same credentials to register for an external funding account.

This account, along with the wager account, can be used for cashless, contactless and frictionless wager at the property after validation of credentials to fund online iGaming player accounts that share the same funding source. This digital wallet can be used to pay for goods and services like a traditional player account.

The pandemic brought more focus to the cashless world. Products emphasizing this feature, both in gaming and elsewhere, gained increased significance.

“Covid-19 has accelerated approval and adoption of cashless as guests dislike handling cash, and our solutions help eliminate the need for traditional currency handling,” Burns says.

Throughout the industry, these products will soon become more battletested. Patrons are returning to brick-and-mortar facilities. They want instant funds access and reconciliation methods. They don’t want lines.

It appears that the industry is wired in to this truth.

JULY 2021 www.ggbmagazine.com

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EMERGING LEADERS

Casino Law to Sports Data Robert Baldassarre Corporate Counsel, Stats Perform s an undergraduate at Penn State, Robert Baldassarre majored in international political economics. It’s the kind of major you think about for a job in the State Department, not a job as a casino lawyer.

But after Penn State, Baldassarre moved on to law school at Notre Dame, where he graduated in 2016. “I found law to be an opportunity to engage my specific skill set, including problem solving and analysis,” says the Philadelphia native.

He landed a position with the influential Fox Rothschild law firm, working out of their Atlantic City office covering the gaming industry as part of the casino law group.

According to the law firm, Baldassarre represented clients in corporate and gaming law matters and guided many of them through the intricacies of licensing, regulatory and compliance. This included representation before agencies such as the New Jersey Casino Control Commission and the Pennsylvania Gaming Control Board.

Almost five years later, this past February, Baldassarre joined Stats Perform, a global sports data and analytics company headquartered in Chicago. He serves as corporate counsel. “I wanted to gain a greater variety of experience and exposure to legal issues and matters that comes with an in-house role,” he says.

Stats Perform, with its focus on sports data and artificial intelligence as a way to create fan engagement and team performance solutions, launched PressBox in May. The online platform delivers data-driven insights, video clip discovery and data research, at a speed faster than ever before.

“I cover a wide range of corporate matters, including contract drafting and negotiation, and customer due diligence procedures,” Baldassarre says.

Like any profession, the practice of law has its unique share of obstacles. “Law can be overwhelming at times and affect other areas of your life. I continue to work towards a proper balancing of my career and personal life,” says Baldassarre, who relaxes on the golf course or at the beach.

At Fox Rothschild, Baldassarre looked to Nicholas Casiello, a law firm partner, for guidance on issues. In addition to Casiello, his mentors include Patrick Madamba, senior counsel for MGM Resorts International. “They were instrumental in my development,” he says.

“Elizabeth Cutri, general counsel and senior vice president for administration at Stats Perform, has been a terrific mentor in my transition to in-house.”

While still comparatively young, Baldassarre has sage advice for those considering a career in gaming law. Be diligent. Be responsive. Both are necessary to establishing relationships with clients.

“The practice of gaming law can be chaotic at times, but ensuring a connection to your client goes a long way toward building a relationship,” he says.

— Bill Sokolic

A

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Swiss Army Knife Experience Brad Egnor Senior Vice President of Marketing, San Manuel Casino rom chef to emerging leader in gaming, Brad Egnor has shown the true value of building work experiences with education, having the curiosity to learn new markets, and staying dedicated to grow as a leader.

Egnor’s initial passion stemmed from the culinary arts. After he worked as a chef for the 2002 Olympics, the BroAdmoor Estates, 6 Degrees in Nashville, Tennessee, and a French restaurant, The Orangery, Egnor decided to pursue a bachelor’s degree in consumer science from the University of Tennessee to further diversify his education.

As graduation approached, Egnor attended a career fair where he was first introduced to the gaming industry. At the fair, Egnor met representatives from Caesars Entertainment, and with his versatile background in back-of-house operations, a culinary degree, and what was soon to be a bachelor’s degree, Egnor was offered a position in food and beverage in Tunica, Mississippi. In F&B operations, Egnor was faced with a new challenge of working directly with customers and developing the skills of running a business operation, while learning how to efficiently supervise team members.

After two years as a food and beverage manager, Egnor transitioned to an analyst position in financial planning and analysis for the Mid-South Region to continue developing analytical approaches to business problems, fluid presentation skills, and the capacity to understand system architecture.

Within his four years with Caesars Entertainment, Egnor had worked his way up the corporate

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ladder to procurement and contracts manager for the Mid-South Region, while continuously working to build a versatile foundation. For a brief period, he stepped away from the gaming industry to help run a winery at the Montaluce Winery & Restaurant in Georgia as the director of marketing and operations.

Following his foray into the wine industry, Egnor transitioned back into the gaming industry by accepting an offer from Genting, at Resorts World Casino New York City as a financial planning and analysis manager. While building out the team in finance, Egnor worked closely with marketing to build out the SAS suite, conducting analytic reporting on promotions and database performance, as well as segmentation strategies.

Through this work, Egnor found the drive to become a marketing leader and moved into the division as the director of marketing. After two years in this role, Egnor went back to school to obtain a master’s degree in business analytics from New York University while working full time at Resorts World. This step was crucial for his next career move, and would help to gain new insights on how to improve his strategic decision-making skills.

While working in marketing, Egnor found a mentorship with Missy Lawrence, who at the time was the vice president of marketing, having encouraged Egnor to take the leap and transition to the marketing department.

Lawrence’s strong trust in Egnor was crucial in allowing him to make prudent decisions quickly and effectively, which eventually landed Egnor the position of vice president of marketing at Resorts World Casino New York City. After working for eight years with Genting and developing marketing strategies with all the casinos in the Genting U.S. portfolio, Egnor transitioned over to San Manuel outside of Los Angeles as the senior vice president of marketing.

Egnor attributes much of his success to his mentors, Ed Farrell, Missy Lawrence, Scott Molina, and Rikki Tanenbaum, stating that “the most powerful attributes these crucial mentors were able to convey (in him) is trust.”

Throughout his career, Egnor has found that the most essential trait for any professional to achieve success is the ability to be a “Swiss Army knife of a leader.” As he notes, “This allows you to work across verticals to learn a variety of roles and skills, which is critical for early professional development.” It also allowed him to personally “chart unique, cross-functional career paths” which led him to the success he has today.

—Krista McPherson is an analyst with The Innovation Group.

Teamwork Testimony Steven Slotwinski Chief Technology Officer, Eclipse Gaming Systems hen Steven Slotwinski graduated from DePaul University in Chicago in 2004, he had big dreams.

“I wanted to work on large complex products that would affect the masses. The gaming industry was not on my radar,” says the computer science major who grew up in Itasca, Illinois. His interest in computer science began in high school but didn’t blossom until his sophomore year at DePaul.

After graduation, WMS Gaming hired Slotwinski as a principal test engineer, and he discovered the immensity of the field. In nine years with the company he helped produce some of the more innovative slot games. He managed a studio of artists, software engineers, game designers, mathematicians, sound and other engineers.

“I always saw game design as a fusion of psychology, creativity and a mathematical ride,” says Slotwinski, who coaches his son’s soccer team and plays tennis with his daughter. “These three components exist when you create any game, either a game of chance or a game of skill. Understanding what people want to play, then creating an entertaining ride for them based on that understanding is extremely satisfying.”

During this time, WMS created Willy Wonka, Wizard of Oz, Lord of the Rings, Austin Powers, Spiderman, The Price is Right, and Mad Men, among others .

In 2016, Slotwinski left WMS for Monarc Gaming Labs, a subsidiary of NHN Entertainment, and in 2019, joined Eclipse Gaming Systems. As chief technology officer at Eclipse, Slotwinski oversees the company’s hardware and software product strategy.

“Everything from product development and innovation to performance optimization and portfolio growth supporting industry trends,” he says. “I challenge my team to push boundaries.”

Covid-19 impacted Eclipse as it did other companies.

“The great thing about Eclipse is our agility,” Slotwinski says. “Although this has been a year navigating uncharted territories, our focus remained the same: delivering high-quality products and providing exceptional customer service. Our company as a whole has risen to the challenge. We have regained and surpassed expectations of our business.”

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Obstacles are part of the game, even beyond the pandemic.

“What makes you stand out is how you remove those obstacles. At Eclipse, we handle all obstacles as a team. We review each and identify a solution that will make us a better organization,” Slotwinski says.

Slotwinski has a trio of colleagues he gives props to. “These mentors, and the experiences I received from them, have shaped me into who I am today.”

Phil Gelber served as senior vice president for product development at Scientific Games, which became WMS’ parent company.

“It was through Phil that I learned the most about game development, specifically what it takes to not only make a great game but also a profitable one,” Slotwinski says.

Wonbae Jang, now head of GLHF Games, mentored Slotwinski through business dealings while at Monarc.

“Everything from obtaining capital, starting ventures, collaborating with other companies, and mergers and acquisitions. With Wonbae I learned the most about business development,” he says.

Tim Minard, CEO of Eclipse, mentors by example, says Slotwinski.

“He leverages his wealth of knowledge in technology, leadership and operational excellence.

Tim’s passion towards his work and the gaming industry makes you want to bring your best to the table.”

If he could shape future game designers, Slotwinski would impart this advice: “Innovation in designs comes in phases. You do not need to reinvent the wheel, just modify it one step at a time.”

— Bill Sokolic

JULY 2021 www.ggbmagazine.com

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FRANKLY SPEAKING

by Frank Legato

Buffets, Hockey and Hostels

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reat news: The buffet is back.

Casino buffet restaurants, of course, were supposed to be one of the fatalities of the Covid-19 pandemic. A year ago, when casinos were struggling to reopen after state-mandated closures, the main concern was being in a room with another human and not needing hazmat gear. It was widely assumed back then that the days of plucking items from a community pile of exposed foodstuffs were gone forever.

Now that we’re going back to 100 percent human capacity everywhere, it seems the human desire to stuff hot food down the gullet until mashed potatoes begin to crowd the esophagus has won out over any lingering safety concerns.

When some of the buffets began to reopen, they had servers at each station to safely shovel food onto your plate. But last month, commissioners in Clark County, Nevada, where all the Vegas casinos reside, ruled it is again OK to serve yourself. With shovels provided by the house, you can once again build obscenely large piles of food on your plate without judgment, and scarf down chicken, ribs, beef, pies and whatever else, to the point of belt-loosening nausea.

The reason casino buffets were conceived in the first place was not to promote gluttony, but to provide a fast, cheap bite to eat that would minimally affect gambling time.

While the “fast” is back at several Strip casinos, the “cheap” is not. The Bacchanal at Caesars Palace, for instance, features dozens of cuisines and hundreds of perfectly prepared offerings from specialty chefs. “It’s like having your pick of nine high-end restaurants in one location,” says the casino’s website.

But that taste of Romanesque gluttony is $64.99 per person. I suppose that’s reasonable for the quality, but I’m someone who fondly remembers $9.99 buffets—when you had to pay for them at all. (I also remember $3 prime rib at the old Westward Ho. And newsboys in baggy clothes shouting, “Extra!” And complaining about “that damn Roosevelt.”)

There are, of course, much more reasonable buffets available on the Strip. The MGM Grand only charges $26.99 per person for weekday breakfast—still not cheap like in the old days, though. And some of the

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places where you would expect cheap buffets are not even reopening their scarf-fests. Red Rock Resorts CEO Frank Fertitta said in a recent earnings call that Station Casinos, the locals havens, will not bring back buffets.

I’m guessing it’s for sanitary reasons. I mean, it’s not like their bowling alleys, where a quick spray from an aerosol can magically eliminates all germs from bowling shoes that have been worn by any number of fat, sweaty, anonymous patrons, right?

Well, at least there’s still an affordable buffet at my favorite Las Vegas casino, the South Point—not to mention hockey slots. South Point was the first casino to install the new Vegas Golden Knights slot machine. (Segue rating: 8.) Slot-maker AGS produced the machine under an agreement with the National Hockey League. It is a huge machine, the size of the older AGS “Big Red” slot machine—8 feet by 8 feet, it says here.

The game has giant reels and multiplying wild symbols bearing the images of Golden Knights stars like goalie MarcAndre Fleury, who Vegas stole from my team, the Pittsburgh Penguins, in the expansion draft a few years back.

Not that I’m bitter, mind you. I just hope someone puts out a Penguins-themed slot. It could feature current Penguins goalie Tristan Jarry in a pachinko theme, and you win if you put the “puck” past his tentatively and meekly outreached glove, which would trigger an animated bonus round in which you win the jackpot if Jarry passes the puck directly to a charging competitor in a Stanley Cup Playoff game, who easily scores the OT winner.

Glove side, naturally.

Not that I’m bitter, mind you.

Finally, the Macau Daily Times says they are considering “capsule hotels” to accommodate overflow and bargain-seeking tourists visiting the Macau casino districts. I had never heard of such a thing, but evidently, capsule hotels have been around for a long time in places like Japan. The “guest room” is a chamber roughly the length and width of a single bed, with just enough room to sit up on the bed. The capsules are stacked side-by-side, two units high.

So, it’s like getting a nine-hour MRI. Or staying in a drawer in the morgue, but with air conditioning and a tiny TV. Beyond that, it’s just like a hostel, with shared toilets, showers and dining rooms.

This is a perfect choice for my next vacation.

As long as they have a buffet.

Strength in Numbers

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

AGEM.org

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

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NEW GAME REVIEW

by Frank Legato

Pac-Man Wheel

Ainsworth Game Technology

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his video slot on Ainsworth’s new A-STAR Curve cabinet is the newest offering in the manufacturer’s popular Pac-Man franchise, exploiting the bonus wheel format to trigger eight bonus events based on the characters of the legendary video game.

The base game uses a five-reel, 243-ways-to-win format, with a wheel spin bonus trigger mingling with the ghosts and other Pac-Man icons of the theme.

The game, however, is centered on the giant bonus wheel displayed on the 43-inch floating infinity monitor of the A-STAR Curve. According to the manufacturer, the main wheel bonus, triggered by wheel symbols on the first and fifth reels, occurs once every 21 spins. The 12 slices on the wheel include a few static credit awards along with six bonus events based on the Pac-Man theme, plus a “Jackpot” slice that reveals one of two progressives—a Major resetting at $300 or the Grand, resetting at $2,500.

Landing “Credit Prize” on the wheel spin awards a credit value of either 50 or 100 times the total credits bet. The frequency of this outcome and of the Jackpot feature increase the higher the wager.

When the wheel lands on the Jackpot slice, the player chooses a ghost, which reveals the Major or the Grand as the prize.

If the wheel lands on “Ghost Bonus,” each of five different fruit symbols changes into a mystery wild symbol, and wins are evaluated. If it lands on “Fruit Bonus,” each fruit symbol on the screen reveals a prize of up to 50 times

the total bet. If it lands on “Extra Prize,” four ghosts appear on the screen, and each reveals a credit prize.

The other two outcomes on the wheel are “Golden Ghost” and “Free Game.” Golden Ghost triggers a picking game in which the player selects one of three ghosts to reveal a prize of up to 100 times the total bet. Free Game awards eight free spins on a three-reel array, with a fourth reel that awards bonuses including the Ghost Bonus.

Manufacturer: Ainsworth Game Technology Platform: A-STAR Curve Format: Five-reel, 243-ways-to-win video slot Denomination: .01 through 100.00 Max Bet: 300, 600 Top Award: Progressive; $2,500 reset Hit Frequency: Approximately 50% Theoretical Hold: 4%-15%

Buffalo Link Aristocrat Gaming

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his has been Aristocrat’s hot release of the year, drawing on the main features of two of company’s most iconic brands, Buffalo and Dragon Link—itself a sequel to Lightning Link, the game that pioneered the “Hold & Spin” game mechanic now being featured by most slot manufacturers in one form or another.

The game, presented on the MarsX Portrait cabinet, uses the well-known free-spin round and other game features of the Buffalo brand, and adds new features like 2X and 3X wild multipliers and a mystery “must-hit-by” bonus that awards either the Hold & Spin feature or free games, as well as a four-level jackpot consisting of two static awards and two progressives.

The base game is a five-reel, 1,024-waysto-win format, The game features a a bonus called “Buffalo Free” for collecting Buffalo symbols during the base game, free-spin and Hold & Spin features. During all phases of the game, a meter logs the Buffalo symbols collected. A Buffalo 46

Global Gaming Business JULY 2021

Free jackpot is returned before the meter reaches 1,800.

The Free Games feature is the familiar free-spin round from the original Buffalo with re-triggers, plus 2X and 3X multiplying wild symbols.

Eight or more Buffalo symbols on the screen trigger the Hold & Spin feature. The triggering symbols reveal credit awards and hold in place for three spins, during which any additional Buffalo symbols lock in place and return the bonus spins to three. The Buffalo symbols can also reveal three of the four top prizes—static awards of $20 (Mini) or $100 (Minor), or the secondary progressive resetting at $750.

The feature continues until three spins without Buffalo symbols, which awards the cumulative credit and progressive awards, or until the entire four-by-five screen is filled with Buffalo credits, which awards all credits plus the Grand Jackpot, which resets at $10,000.

Manufacturer: Aristocrat Gaming Platform: Mars-X Portrait Format: Five-reel, 1,024-ways to win video slot Denomination: .01, .02, .05, .10, .25 (Player-Selectable Multi-Denom) Max Bet: 500 Top Award: Progressive; $10,000 reset Hit Frequency: Approximately 50% Theoretical Hold: 5%-7.46%

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CUTTING EDGE

by Frank Legato

Game Changer PRODUCT: Foundation MANUFACTURER: Acres Manufacturing

very decade or two, the gaming industry discovers something so monumental it creates a true paradigm shift. That moment is now. Acres Manufacturing is introducing a once-in-ageneration product called Foundation, enabling smartphone synchronization with slot machines and table games. The technology is the bellwether of the industry’s much-anticipated advance to cashless casino floors.

Foundation allows cashless transfers with any slot machine or table game on the floor. But that’s just the beginning. Foundation can also deploy realtime messages and bonuses to any player on command—either at the game or via the casino’s mobile app. This technology allows casinos to communicate, incentivize and pay bonuses to players whether they’re sitting at a slot machine or on their couch.

The system interfaces directly to the slot machine and extracts all information—up to 120 data points per spin—in real time. In total, Foundation collects over 1,000 times more data than any legacy player tracking system, and all data and data access is owned and controlled by the casino, which is itself a true game changer. Any other application or data source can be inter-

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Recycling Décor PRODUCT: The Echelon Collection MANUFACTURER: Ex-Cell Kaiser

x-Cell Kaiser’s Echelon Collection of recycling receptacles brings decades of industry experience together with a refreshing, unique design that can accommodate virtually any public space environment.

The Echelon Collection provides an entire family of products that can be used across all areas of any facility, with capacities ranging from 32 gallons to 75 gallons. Featuring stainless steel construction accented by black trim and silkscreened aluminum graphic plates, Echelon units enable casinos to maintain the integrity of their décor facility-wide.

When the first Echelon units were introduced in 2015, they were so well received by the marketplace Ex-Cell Kaiser decided to expand the product line. After the Slim version was introduced to provide a smaller capacity option, the Half Hex (HHX) was introduced as an alternative to the traditional “half-round” design. For decades, Ex-Cell’s customers utilized the half-round design for a receptacle that was flush to walls, unobtrusive and visually appealing. The HHX model takes these principles and com-

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faced, with no interface fees or restrictions.

Foundation is so transformative it allows continued operation of the legacy system, even as its new benefits are deployed. Through a first-of-its kind technology called SAS-sharing, Foundation can actually serve as a pass-through device for the legacy system hardware. All meters will still report to the legacy system, which also retains its ability to implement bonuses and other functions.

Every day, people use smartphone technology to pay and receive funds.

Foundation answers the demand for secure and convenient cashless interactions in the casino. Foundation delivers over 1,000 times more real-time data than current casino management systems while simultaneously providing a cashless, single-wallet solution to players via their own mobile device. This isn’t the future. This is now.

To schedule a demo or for more information, visit acresmanufacturing.com.

bines them with a clean, contemporary design.

Designed in collaboration with professional industrial designers, the Echelon Half Hex (HHX) adds visual interest to a space with its angular and sleek design. The patented design is available in oneand two-stream configurations (32 gallon capacity), and features a stainless steel body with black anodized aluminum trim. A locking side door provides full, secure access to the liners within the unit for quick and easy serviceability. An ash cup is available, as an option, to serve the casino market.

“One of the dictionary definitions of an Echelon is ‘a level of worthiness, achievement, or reputation,’” says Anna Cosentino, vice president of sales and marketing at Ex-Cell Kaiser. “This is the very embodiment of our Echelon and Ex-Cell Kaiser itself. Ex-Cell has become synonymous with quality, and the Echelon Collection is no exception.

We are providing the marketplace with a comprehensive family of products that will serve the varying needs across any facility while maintaining design integrity.”

The Echelon Collection is not simply the next generation; this is the best generation in public space recycling receptacles.

For more information, visit ex-cell.com.

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GOODS&SERVICES SIGHTLINE ACQUIRES CASINO MOBILE APP DEVELOPER JOINGO MICHIGAN TRIBAL CASINO ADDS GAN PLATFORM

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AN Ltd., the leading full-service internet gambling enterprise software-as-a-service provider to the U.S. retail casino industry, announced that it has entered into binding agreement with the Saginaw Chippewa Indian Tribe of Michigan, who own and operate Soaring Eagle Casino & Resort.

Soaring Eagle is the largest casino in the state of Michigan, with an expansive 210,000-square-foot casino facility that offers thousands of slot machines and the widest variety of floor games available in the Midwest. It also possesses an extremely sizeable database of patrons, who the parties anticipate converting into active online players via GAN’s patented iBridge loyalty platform.

Under the terms of the agreement, GAN will deploy the GAN GameSTACK enterprise software platform onto the client’s infrastructure deployed on-property. GAN also will collaborate with the client to design and develop its iGaming and sports betting front-end web application together with counterpart native Apple iOS and Android apps.

GAN will deploy the company’s patented iBridge Framework to optimally monetize the Soaring Eagle patron database and leverage their on-property retail loyalty program.

The announcement marks GAN’s fourth client in the state of Michigan and adds to the company’s growing list of tribal clients. This also marks GAN’s ninth client for U.S. real-money iGaming and online sports betting in the U.S. For investors, this new GAN client represents the core customer constituency in the U.S.—major regional casino operators, both tribal and commercial—seeking access to a fast-to-market deployment of a proven enterprise technology solution for launching and developing a competitive product offering across both iGaming and sports betting.

David Charles, chief operating officer of Soaring Eagle, said, “We are excited to leverage GAN’s proven Michigan platform capability and expertise to introduce an exciting online casino and sportsbook, which will allow us a new way to engage with our patrons. GAN has a proven solution and has demonstrated their ability to bring their platform to market quickly in Michigan. We look forward to collaborating with the team at GAN and our shared future together.”

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Global Gaming Business JULY 2021

S

ightline Payments, a fintech company specializing in digital payments solutions for the sports betting and casino markets, announced the acquisition of Joingo, the leading mobile engagement and loyalty platform for the casino gaming industry.

Joingo is the leading provider of mobile engagement solutions serving over 100 casino operators across North America and is the only app solution focused exclusively on the casino gaming industry.

Joingo’s patented mobile loyalty platform allows casino brands to reach their mobile users with highly personalized and interactive mobile marketing campaigns that drive increased reach, loyalty and revenue.

The acquisition provides Sightline the ability to offer casino customers a turnkey cashless gaming solution as well as a broader suite of products to help North American casinos enhance loyalty and personalization for customers, and drive increased visitation and loyalty for properties.

“This acquisition positions Sightline to provide a more robust digital payments experience in casinos,” said Joe Pappano, CEO of Sightline Payments. “We know that enhancing a guest’s mobile experience is the key to cashless gaming adoption in casinos. We welcome Joingo’s talented team to Sightline to further strengthen our ability to empower the digital transformation of the consumer experience.”

The deal will expand Sightline’s well-established, value-added solutions portfolio, strengthening the company’s focus on offerings that enhance revenue, patron loyalty and operational efficiencies.

ARISTOCRAT TO ENTER HHR MARKET

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ristocrat Gaming and Churchill Downs Incorporated (CDI) have entered into a long-term agreement that will bring Aristocrat’s player-favorite games to the rapidly expanding historical horse racing (HHR) machine market via a partnership with Ainsworth Game Technology.

Aristocrat’s newly engineered historical horse racing machines will operate on Ainsworth’s proprietary HHR system, featuring popular Aristocrat brands including Buffalo, Wild Lepre’Coins and

others exclusively on its award-winning MarsX family of cabinets.

Aristocrat’s HHR games will appear across CDI locations in Kentucky, including Derby City Gaming, Oak Grove Racing, Gaming & Hotel, Newport Racing & Gaming, and Turfway Park Racing & Gaming when it opens in 2022.

“Aristocrat is a leader in offering the top games in the industry, and we’re ecstatic to add their top games to our HRM locations,” said Austin Miller, senior vice president of gaming operations for CDI. “Their innovation as it relates to content and hardware will allow us to expand our game offerings and attract their loyal customer base.”

Ainsworth Chief Commercial Officer Deron Hunsberger added, “We are excited to be offering Aristocrat’s player-favorite titles on our system. In the two years since Ainsworth launched its system with about 1,000 games in Kentucky, we have continually worked to provide additional game options to CDI and its players.”

Aristocrat enjoys a long-term partnership with CDI through providing Class III games and systems solutions for all CDI casinos.

CAESARS PALACE TO INSTALL EVERI JACKPOT SYSTEM

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aming supplier Everi Holdings Inc. announced an agreement with Caesars Entertainment, Inc. to begin a Nevada field trial for Jackpot Xpress, Everi’s jackpot management system, under guidelines issued by the Nevada Gaming Control Board. The trial will take place at the Caesars Palace on the Las Vegas Strip.

Upon final approval by the Nevada Gaming Control Board, Caesars will have the option to install Jackpot Xpress at all its Nevada properties.

Caesars also will have the option to install Jackpot

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Xpress at all its owned and managed locations, pending further jurisdictional approvals.

Jackpot Xpress is an award-winning, intuitive jackpot and tax forms management solution that enables casino staff to securely and efficiently process slot jackpots using a mobile device right at the winning gaming machine. Jackpot Xpress is the only jackpot management system that combines mobile productivity, secure payment, tax forms management and anti-money laundering tracking into a single solution.

According to the company, Everi’s proprietary technology provides increased convenience for the player and improved efficiency for casino staff, all while eliminating paper, shrinking cage lines, and reducing player wait times—resulting in a greatly improved gaming experience.

Caesars Palace will also be the first casino to utilize Everi’s proprietary electronic tax form delivery system. This system allows tax forms, such as W2-G forms, to be securely retrieved by the player, further enhancing the guest experience.

OKLAHOMA CASINO PICKS JCM

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CM Global announced it has expanded its relationship with Oklahoma’s Kickapoo Casino Shawnee by adding JCM’s iVIZION and UBA bill validators and ICB Intelligent Cash Box system 3.0 for its casino expansion. Additionally, JCM upgraded the existing ICB system in the Kickapoo main casino to the latest version of ICB 3.0.

RENO CASINO ADDS GARY PLATT SEATING

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ary Platt Manufacturing announced that Reno’s Tamarack Junction Casino has added the supplier’s Sonoma Club barstool chairs to its new Nevada Steak bar, and custom Lido seating to the property’s DC Bar. “We’ve used Gary Platt for many years, and they always go above and beyond,” said Kyle Sullivan, Tamarack Junction’s slot director. “This is especially true with our new bar-top chairs, the Sonoma Club in our Sully’s Bar and the Lido in our DC Bar. Both these styles not only look great but are comfortable and durable as well. Thank you, Gary Platt, for another job well done.”

Led by head designer Ed Abadie, Gary Platt’s design team worked closely with Tamarack’s lead designer Larry Henry to create a custom look that perfectly complements Nevada Steak’s atmosphere

and décor.

For the Nevada Steak project, Gary Platt’s artisans hand-crafted the Sonoma Club with distressed brown leather on the seat and chair back. The rear side of the chair back features a rich combination of distressed black leather accented with antique brass studs.

Gary Platt created its Sonoma Club model so every inch would provide the most comfortable sit possible. A shorter back provides the perfect combination of support and freedom, and a curved seat front reduces leg strain. Inside, Gary Platt’s exclusive cold-cured foam provides unsurpassed comfort.

HARD ROCK HOLLYWOOD ADDS ARISTOCRAT’S BUFFALO LINK

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lorida’s Seminole Hard Rock Hotel & Casino Hollywood has added Buffalo Link, the hot game title of the year from supplier Aristocrat Gaming. Buffalo Link is a progressive product that combines Aristocrat’s venerable Buffalo slot franchise with the hold-and-spin mechanic pioneered by the supplier’s Lightning Link game.

Kickapoo Casino Shawnee operates 400 electronic gaming machines featuring JCM’s iVIZION, UBA, and ICB system in the main casino. Their recent expansion includes an additional 250 EGMs. “Our goal at Kickapoo Casino Shawnee is to maximize the efficiency of our team so they can focus on our mission to provide the best customer experience in our market,” said Paul McIntire, Kickapoo’s finance director. “Selecting JCM’s products for our expansion and upgrading to JCM’s latest version of their Intelligent Cash Box System will give our team the tools to help make that happen.”

JULY 2021 www.ggbmagazine.com

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FEBRUARY 2021

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PEOPLE PINEAULT NAMED TO LEAD MOHEGAN GAMING & ENTERTAINMENT

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ohegan Gaming & Entertainment (MGE), developer of integrated entertainment resorts worldwide, announced the appointment of Ray Pineault as its Ray Pineault president and chief executive officer, effective immediately.

In this role, Pineault will oversee all day-to-day operations for MGE, including ongoing brand growth and continuing to ensure MGE delivers unmatched personalized services and memorable guest experiences.

The appointment occurs as the company successfully navigates out of the pandemic and through the ever-evolving world of integrated entertainment and the digital gaming landscape. Pineault has been acting as interim CEO for MGE since March 31.

After 20 years of service to the Mohegan Tribe, including serving as president and general manager of the brand’s flagship property, Mohegan Sun Connecticut, and most recently as chief operating officer of MGE, Pineault brings a wealth of legal and business knowledge with him to the CEO role.

In this role, Pineault will be responsible for the overall success of MGE where, in alignment with the tribal council, he will create, communicate, and execute a global vision, strategy and direction for the company, drive the company’s culture, values and behavior, build a high-performing executive team, and allocate capital to the company’s priorities.

BILLINGS TO RUN WYNN INTERACTIVE

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ynn Resorts announced that Craig Billings will step down as Wynn Resorts Ltd. president and will assume the role of president and chief financial officer of Wynn InCraig Billings teractive Ltd., the business that oversees the company’s sports betting and iGaming offerings.

Billings will remain CFO of Wynn Resorts Ltd., the company said.

The move comes after Wynn recently entered into a definitive agreement with Austerlitz Acquisition Corporation that will see the two combine to create an independent public company, Wynn Interactive, to be listed on the Nasdaq.

Billings has been granted 10,000 shares of Wynn Interactive, which also will reimburse Wynn Resorts for a percentage of his salary, the company said.

Billings remains a non-executive director of Wynn Macau Ltd.

GLI NAMES WONG AS DIRECTOR OF LOTTERY SOLUTIONS

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aming Laboratories International (GLI) has named former Montana Lottery Director Angela Wong as director of lottery solutions, Angela Wong adding to what the company calls its “deep bench of subject matter experts” serving thousands of lotteries, regulatory agencies, and related equipment vendors and services providers globally.

In her leadership role, Wong will serve as an essential resource for lottery clients and work with lottery suppliers and technology vendors to facilitate end-to-end success in the lottery industry. She will identify technical and business challenges facing U.S. and international lotteries and develop a strategy for engagement and serving of lottery-related needs in every region of the world.

Prior to joining GLI, Wong was director of the Montana Lottery, where she earned an international reputation for her leadership and innovative approach.

NOVOMATIC RESTRUCTURES GLOBAL OPERATIONS; ADDS U.S. CFO

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fter the successful restructuring of its Global Sales and Production & Logistics division, Austria-based gaming supplier and operator Novomatic AG is continuing Thomas Komnacky its program of transformation initiated last year, implementing a new structure to strengthen the Global Operations business segment.

All departments and divisions involved in running the approximately 1,900 Len Busche gaming facilities worldwide as well as renting gaming equipment will from now on be bundled in the new Global Operations business segment under the leadership of longtime Novomatic manager Thomas Komnacky, who has been promoted to the new position of vice president of global operations, reporting directly to Novomatic Executive Board Member Ryszard Presch.

Komnacky, who was previously responsible for

market analysis, strategy development and business development, joined the Novomatic AG group in 2014. Prior to that, he had worked successfully in investment banking for several years.

Also at Novomatic, the Americas division has announced that Len Busche will become its chief financial officer. Busche has spent more than 20 years in financial and operational roles, leading value creation and integration functions for influential organizations like the Illinois CPA Society.

He has recently served as the senior vice president of finance for Novomatic Americas.

JCJ ARCHITECTURE INTRODUCES INTERIOR DESIGN LEADER

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CJ Architecture announced the addition of longtime hospitality leader Nicole Dalton Williams, RID to the firm. Williams will serve as interiors Nicole Dalton project director in the Las Williams Vegas office.

In her new role, Williams will work closely with the hospitality and gaming design team to strengthen JCJ’s influence in Las Vegas and beyond, leveraging her international experience to further enhance the collective interior design practice.

Williams brings over 20 years of experience in global hospitality and entertainment interiors, with particular expertise in the curation of design solutions for gaming enterprises.

GGB

July 2021 Index of Advertisers

Acres 4.0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35 AGEM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45, 37 AGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 Apogee Gaming USA . . . . . . . . . . . . . . . . . . . . . .33 Aristocrat Technologies . . . . . . . . . . . . . . . . . . . .55 Aruze Gaming . . . . . . . . . . . . . . . . . . . . . . . . . . . .27 Bluberi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17 Casino Player Media . . . . . . . . . . . . . . . . . . . . . . .52 Everi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 Fantini Research . . . . . . . . . . . . . . . . . . . . . . . . . .51 GAN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9 Gaming Arts . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23 Global Gaming Business . . . . . . . . . . . . . . . . . . . .10 IGT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7, 55 IGT PlayDigital . . . . . . . . . . . . . . . . . . . . . . . . . . .31 J Carcamo & Associates . . . . . . . . . . . . . . . . . . . .49 Reed Expo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .47 Sightline Payments . . . . . . . . . . . . . . . . . . . . . . . .11 Wipfli/Joseph Eve . . . . . . . . . . . . . . . . . . . . . . . . .41

JULY 2021 www.ggbmagazine.com

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CASINO COMMUNICATIONS

Q

&A

Sequoyah Simermeyer Chairman, National Indian Gaming Commission

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or a regulatory body, the National Indian Gaming Commission had several important challenges during the pandemic. Chairman Sequoyah Simermeyer says his agency used the pandemic to focus on streamlining processes and procedures to better serve the tribes and operations depending upon them.

Now that the commission has its full component of three members for the first time in several years, Simermeyer is enthusiastic that his agency will exceed expectations in the primary function: the integrity of the industry. He spoke with GGB Publisher Roger Gros on Zoom in May. To hear the full interview on Zoom or audio, visit GGBMagazine.com.

GGB: Less than a year after you were appointed chairman of the NIGC, the pandemic hit. Explain what kind of challenges you had to the operation of the NIGC. Sequoyah Simermeyer: One thing we did, soon

after having to deal with the pandemic, was to focus both on our operations and on how we meet our mission. We really divided our focus into projects that were internal and external.

And because of that, we’ve been able to be somewhat innovative in how we’re meeting our responsibilities. And we plan to keep addressing those by both continuing to support the staff at NIGC, who have been working hard to make the most of these circumstances, and also really remain dedicated to our partnership with tribal communities. We’ve prioritized operational work that addresses issues early so they don’t become unmanageable problems. We’ve really focused on prioritizing policies and practices that are transparent and consistent.

Tell us how technology assisted staying in touch with the tribes during this period.

Even before the pandemic, we dedicated all of our technical assistance—which is part of our statutory requirement for the agency—to being virtual. We typically will hold in-person region54

Global Gaming Business JULY 2021

training conferences, and we moved all of that to a virtual platform, and we’ve had a good amount of success at reaching a broad audience with that. We had to make adjustments and upgrade some of our virtual formats, so that we could use it not just for our technical assistance that we provided through our trainings, but also in keeping communication through region and focus meetings with tribes, and through commission outreach with tribes, at the commission level.

How did you oversee the closing of casinos in Indian Country?

Well, the Indian Gaming Regulatory Act sets up a little bit different framework for how we approach an issue like this. It definitely was a closure that we had never seen before in the industry, and a Northwest tribe was one of the first ones to make that decision, and tribal decision-makers, tribal lawmakers were leading that decision-making process. They were doing it based on circumstances at the local level, that were put in place to protect employees, and make sure that customers were safe—it was driven by local conditions. It was important early on for the NIGC to help support that decisionmaking process, by monitoring and assisting tribal decision-makers. We also emphasize the expectation that the tribal gaming regulatory authorities, under our regulations, and under IGRA, are part of that decision-making process, and encourage coordination with local jurisdictions to be able to make that assessment that tribes were making.

This is the first time in a while that you have a full complement of commissioners. Is this the first time that all three commissioners are Native Americans?

I think in the past there’s been three Native commissioners serving at the same time. All three members of the current commission are proud to be Native, and proud to be serving on the commission. I’m a member of the Coharie tribe from North Carolina. My family has also got strong roots in northern New Mexico. So, I think that shapes my identity, but I know that Vice Chairwoman

Isom-Clause and Commissioner Hovland come from tribal communities and are active in their communities, and they bring their own perspectives from Indian Country, that kind of help to inform our decision-making. But having a full complement on the commission I think is what the Indian Gaming Regulatory Act contemplated. It helps to have a broader process and really improves the work of the agency. We’re excited to have a full commission.

What is the NIGC role in overseeing sports betting in Indian Country?

One of the things we did early on was to put out guidance on sports betting, and what some of the considerations were for the NIGC, as tribes were contemplating this. As tribes contemplated if that’s an option that they wanted to pursue under their restrictions through a compact on Class III gaming, we tried to make clear that our interest was in looking at the management contract approval requirements that are laid out in IGRA, and whether or not arrangements that were being made had implications for the sole proprietary interest requirement that’s in IGRA. But with the different options that tribes were pursuing, we try to help put that information out so tribes and their partners can consider what role the NIGC might play in there. But it really does depend a lot on how they’re structuring that relationship, and how they’re providing it. So there’s something like four different models that we saw that were laid out in that guidance. I think the most common approach that we’ve seen is that a tribe with a licensed operation will hire a vendor or a consultant that provides discreet information or advice to the tribe but allows them to hire someone to provide advice on setting the line for the wager, or to whether or not they should accept the wager. So, those are some of the considerations that go into whether or not management is occurring, or whether or not there’s a sole proprietary interest, which are the concerns under the Indian Gaming Regulatory Act.

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