December 2015 Infinity Gaming Magazine

InfinityGaming www.gaming-awards.com | ISSUE DECEMBER 2015

NEWS VIEWS INTERVIEWS

FRONT COVER - SARAH SCULPHER EXCLUSIVE INTERVIEW - LUKE ALVAREZ WIG NETWORKING DETAILS REVEALED

GAMING + ARTICLES + BUSINESS+ GLOBAL+ ONLINE + NEWS+ APPS + AWARDS + etc

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DECEMBER 2015

14 CAROL STEWART Meet our WIG Speaker

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SARAH SCULPHER Exclusive Interview

LUKE ALVAREZ Interview with the Inspired Man

Opinion Disclaimer: The views and opinions expressed in all external articles are those of the authors and do not necessarily reflect the official policy or position of The Infinity Gaming Magazine Any content provided by our feature writers or authors are of their opinion, and are not intended to malign any religion, ethic group, club, organization, company, individual or anyone or anything.

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DECEMBER 2015

4 EDITOR NOTES Lana welcomes you to the December edition of Infinity Gaming Magazine.

6 OUR WRITERS Meet our feature writers, the superb writers on our rosta.

14 CAROL STEWART WIG Speaker announced

16 SARAH SCULPHER

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Exclusive Interview

24 IF IT SOUNDS LIKE A ...

Christina Thakor-Rankin

IT’S A DUCK Christina Thakor-Rankin

30 APP QUESTIONS Paul Swaddle

COMMUNICATION APP QUESTIONS Paul Swaddle

40 LUKE ALVAREZ The Inspired Man Interview

46 GAMBLING RESPONSIBLY Liz Karter

+ ALL THE LATEST NEWS & Opinions

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A note from the editor CONTACT US Clever Duck Media Centrix@Keys Keys Park Road Staffordshire WS12 2HA UK Tel: +44(0)1543 478 889 PRODUCTION Clever Duck Media Centrix@Keys Keys Park Road Staffordshire WS12 2HA UK

It’s Winter and time for Expo season with Infinity Gaming Magazine

PUBLISHING Infinity Gaming Magazine is operated by © Clever Duck Media Ltd ®

Lana Thompson - Editor

Welcome to the December edition of the Infinity Gaming Magazine and we hope you had a super Autumn

Company Reg. No. 687 1018 (Registered in England) V.A.T reg. no 972 6372 91

Sponsorship Opportunities Colin@cleverduckmedia.com

Welcome to the latest edition of Infinity

You would think with all that was it but

Gaming Magazine and what an amazing

think again! We have all the very latest

publication we have for you, superb in-

news and opinions inside as well.

Business Partnerships Svetlana@gaming-awards.com

founded Inspired Gaming along with

Finally with the first Women in Gam-

Sarah Sculpher the Chief Marketing Of-

ing Networking Event taking place on

Marketing & Advertising claire@cleverduckmedia.com

ficer (EMEA) Caesars UK, there are some

the 1st February in London at the Sa-

truly insightful thoughts from both our

voy Hotel we are excited at announc-

interviewees and both well worth read-

ing our speaker for the event, welcome

ing.

Carol Stewart cannot wait to be totally

terviews with Luke Alvarez the man that

inspired.

As always we have our team of superb writers and Paul Swaddle keeps us up

Next edition we will all be talking about

to the latest developments following

the finalists for the 9th International

the terrorist attack in Paris and the con-

Gaming Awards (IGA) our judges are fi-

sequences that could have for Apps.

nalising their votes and an announce-

Along with Christina Thakor-Rankin

ment is due very soon.

looking at the fallout of Sports Fantasy betting in the US, Liz Karter asks the very pertinent question of how to gamble responsibly.

Enjoy the magazine.

So, “To Infinity and Beyond!”

Regards, Lana

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Editorial Content & PR media@cleverduckmedia.com

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DECEMBER 2015

Infinity Gaming Magazine Contributing Writers A magazine is only as good as the content inside and with some of the leading specialists within the gaming industry. With specialised articles covering customer service, the gaming law, new prducts, technology and current affairs with the sector the Infinity Gaming Magazine is delighted to showcase our superb line-up of contributing writers.

Christina Thakor-Rankin Christina is Principal Consultant at 1710 Gaming Ltd, a specialist betting and gaming consultancy, delivering a range of services including licensing and compliance (incl. regulation, money laundering and social responsibility), business start-up, training and strategic reengineering, project management, research, business analysis and development, to start-ups and established multi-national operators and providers, gambling regu-

lators, law enforcement and government agencies, media, and specialist interest groups and associations within the sector, in both established and emerging markets across the world.

www.1710gaming.com

Liz Karter – Psychotherapist specializing in women and problem gambling Liz Karter is a specialist in gambling and women and has worked as a therapist in gambling addiction since 2001. Liz is also author of the book “Women and Problem Gambling” published in March 2013.

In January 2010 having worked with all leading UK problem gambling treatment agencies, and having successfully established the first UK groups for women with gambling addiction, Liz launched Level Ground Therapy. A treatment service in the City of London, Level Ground specialises in meeting the individual needs of women with gambling addiction.

Throughout her career Liz has been regularly consulted by the media regarding her specialisation and has made frequent national TV and radio broadcasts including This Morning, Radio 4 You and Yours and Women’s Hour and given numerous national newspaper and magazine interviews.

Paul Swaddle - CEO Pocket App A self-confessed ‘gadget geek, Paul Swaddle has been working at the leading edge of mobile technology for the past 15 years. He co-founded Pocket App in 2011 to bring the creative and technical development elements of mobile technology together under one roof.

This unique approach continues to differentiate Pocket App in today’s increasingly competitive landscape.

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Working across a range of communications disciplines such as acquisition, loyalty, retention and customer development, Paul understands the importance of a strategic and coordinated marketing approach, particularly between on and off-line communications. In the past decade he has enabled brands as diverse as Kellogg’s Fruit Winders, Barclays and Loaded magazine to get the best out of mobile.

DECEMBER 2015

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THE IGA9 JUDGES 01

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Andrew Cammegh- Sales Director Cammegh Limited

Alison Digges – Brand Director Gala Coral Interactive

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Desmond Lam Ph.D – Associate Professor of Marketing at the University of Macau

Prof. Dietmar Hoscher – Deputy Chariman of the Supervisory Board of Casinos Austria International Holding

Emma Loveday – Head of Marketing for Gaming and Betting at The Sun

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Heikki Rinta-Panttila – International Gaming Consultant

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Janet Viipola – Executive Coordinator Interactive Gaming Council

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Liz Karter – Psychotherapist specializing in women and problem gambling

Marek Milewski- Operations Manager Casinos Poland

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Michael SilberlingCEO Affinity Gaming

Ohad NarkisCEO BGO Entertainment

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Onika Russell – Head of Gambling , Airlines & Travel Strategic Services, PayPal

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THE IGA9 JUDGES 13

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Professor I. Nelson RoseSpeaker & Gaming Law expert

Paul Armitage – Operations Director Grosvenor Casinos

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Peter Hoetzinger – CoCEO & President, Vice Chairman Century Casinos

Richard Noble – Chief Operating Officer of the Aspers Group

Roger Marris – CEO at The Ritz Club

Roger Raatgever – CEO Microgaming

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Stella Dalton – Head of Business Development at GamCare

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Sylvia Dietz –Vice President Global Gaming Marketing IGT

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Stephanie Cheung – Chief Legal Officer at Melco Crown Entertainment

22 Tristan Sjoberg –

Vahe Baloulian – CEO BetConstruct

Executive Chairman at TCS John Huxley

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iGaming, Land based, Marketing and Media specialists – We are currently working with a number of the major players across the globe, all are looking to add talent to this resurgent market before the new financial year, attractive packages and options on offer, if you are looking for a new opportunity contact us in confidence: colin@empirecasinorecruitment.com

www.empirecasinorecruitment.com +44(0) 1543 478 889 INFINITY GAMING

GAMING NEWS

DECEMBER 2015

Billionaire investor opposed to Ladbrokes Gala merger

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leading investor of Ladbrokes has called the proposed merger of Ladbrokes and Gala Coral a “bad deal” according to an open letter to all Ladbrokes investors placed online.

A meeting of shareholders is scheduled for Tuesday 24th November and he is urging Ladbrokes shareholders to reject the proposed merger and wants the bookmakers to hire an independent investment bank to conduct a review of all strategic options.

Irish businessmen Dermot Desmond who has a personal fortune of over £1 billion believes that the merger of the two bookmakers worth £2.3 billion is done in hope that it will improve their management team and expand their online business.

However Mr Desmond says the only winners in this is Coral Gala shareholders, the billionaire says in his open letter that “Giving away half your company and taking on over £800m of debt is a very expensive way to recruit a quality management team.”

Mr Desmond has an estimate one or two percent stake in Ladbrokes but this is not confirmed by Ladbrokes or a spokesperson for the billionaire, just to say that the Irish businessman has a substantial investment in the UK bookmaker.

Ladbrokes said it was not surprised by Mr Desmond’s views, but remained “confident that shareholders see the attraction of the proposed deal.”

Wynn Macau new resort delay The new casino resort in Macau being developed by Wynn Resorts has announced it has been delayed by three months pushing back the opening date to June of 2016 instead of the scheduled March opening.

In a statement by Wynn Resorts the casino operator cited that its general contractor in Macau had informed the company of the delay but no reason was given by Wynn Resorts for the three month postponement.

The new casino resort named Wynn Palace Cotai will cost more than $4 billion to complete and will have a 1,700room hotel, a casino and a spa. The number of gaming tables is not yet known. Currently Wynn Resorts relies on Macau for 60% of its total gaming revenues globally.

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GAMING NEWS

DECEMBER 2015

Playtech pull out of Plus500 deal

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nline gambling firm Playtech has dropped its plans to acquire Plus500 worth £460 million following The Financial Conduct Authority (FCA) saying that it has concerns over the deal and Playtech must take further steps if it were to be approved.

Playtech board considered their options over the last couple of days regarding the UK’s regulators comments and decided to pull out of the deal.

The Israeli company said that it did not believe it would “sufficiently satisfy” the FCA by the end of the year, and has consequently withdrawn its application to the regulator.

With the Plaus500 deal now gone and with the Ava Trade purchase worth £69 million in jeopardy following the Irish regulators objections to Playtech acquiring the trading company it looks like Playtech’s hopes of becoming a big player in the trades sector could be over or at least postponed for some time.

Ladbrokes Coral merger arguments get worse The battle over the Ladbrokes Coral merger is getting worse after Richard Buxton, the chief executive of Old Mutual Global Investors who has a 5.5% stake in Ladbrokes branded Dermot Desmond’s comments on the deal were “wishy-washy.”

Desmond said last week that the merger was a “bad deal” according to an open letter to all Ladbrokes investors placed online by the billionaire Irishman. He went on to say that it was bad for Ladbrokes shareholders and should be turned down at the AGM meeting this week to rubber stamp the merger worth £2.3 billion.

However speaking to the Telegraph one of the largest single investors in Ladbrokes said in reply that he is hugely supportive of the merger and actually turned

down Mr Desmond’s attempts at getting him to turn down the deal.

According to Mr Buxton the deal has the support of all the major shareholders and will be approved on Tuesday’s AGM meeting with all parties including Mr Desmond are scheduled to attend. It promises to be a very fiery meeting.

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Interview with Sarah Sculpher Chief Marketing Officer (EMEA) Caesars UK

Sarah thank you for speaking to Infinity Gaming Magazine today can we firstly start off by asking you to explain to our global readers exactly what your role is and what it entails for Caesars UK?

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SS: As part of the Caesars Entertainment Group, my role is to lead marketing and revenue generating initiatives for the EMEA region. It’s a varied remit that balances the development of central strategies to

our customer segments to working directly with individual property teams to create localised initiatives.

At a central level, the scope of my

DECEMBER 2015

Marketing boss of Caesars UK speaks to Infinity Gaming Magazine

role covers all aspects of loyalty and communication – through the development and effectiveness of Player Rewards, our loyalty programme in the UK, and Emerald Rewards in South Africa . Driving the technologies and processes that help us to deliver revenue in ever more efficient ways is also an increasing focus – particularly as the channels to reach customers become ever more varied.

Having a balanced approach to central and local marketing is key for Caesars Entertainment UK as our property base is extremely varied from a large scale, integrated hotel and resort casino in South Africa to the Playboy Club London in Mayfair. A one size fits all approach wouldn’t work for our businesses but there are common challenges that can be addressed more efficiently from the centre.

We are sure our readers know about Caesars in the US but can you explain how many clubs and where they are in the UK? SS: In London we operate 4 casino licences from 3 locations. The Empire Casino in Leicester Square, The Playboy Club London in Mayfair and The Sportsman Casino.

Across those three businesses we have mass market to high-end VIP catered for in three well focused properties.

Outside of London we have venues in Glasgow and Nottingham with the Alea brands, Brighton and Southend with the Rendezvous

brand and Manchester235. These are broad entertainment offerings featuring destination bars, entertainment facilities and celebrity chef dining options.

Internationally, we operate 3 casinos in Cairo and a large hotel, resort and casino just outside the city of Johannesburg – the Emerald Resort & Casino.

What is your marketing background, is it in gaming or other sectors Sarah SS: I have worked in a number of sectors - only recently coming back into gaming three years ago. Having broader experience really helps in the UK casino sector to challenge some of the norms. Prior to joining Caesars, I was Global Marketing Director for 6 years for a retail and wholesale brand management company, working with two of their largest brands – Lacoste Footwear and Berghaus, an outdoor sports brand. My role was to drive inter-

national sales growth and develop effective marketing strategies across 30 countries.

My initial gaming experience came from working for The Rank Group for 4 years as brand manager for Grosvenor Casinos in the years just preceding the 2005 Gambling Act, when change was being proposed and some of the historical norms challenged. My early career began in advertising agencies – one of my biggest clients being Mecca Bingo – so there has always been an element of gaming from the start. I like working with lifestyle and entertainment businesses – brands with personality which customers can feel very passionate about.

How different is gaming to other sectors of business for a marketing specialist like yourself, are there any specific challenges?

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Interview with Sarah Sculpher SS: Marketing is a discipline so the gaming industry isn’t, and shouldn’t think of itself as different – it’s all about creating customer value and driving profitable outcomes.

The industry in the UK has been slower to embrace marketing creativity – mainly because the historical legislative environment was so restrictive. That’s all changed and the scope for marketing isn’t any different from other sectors. We can be more open about what a casino does to the wider world and differentiate from each other in the benefits we offer and the ways in which we drive loyalty and, consequently, the concept of brand has become more important. The Carlsberg Sports Bar, James Martin and Marco Pierre White brand associations that we have developed have been instrumental in driving new feet to our doors and challenging perceptions.

That said, my peers in other industries find this sector very intriguing. When I tell them that most of our decision making for marketing activities and promotions is based around theoretical revenue – they look at me somewhat quizzically.

In most businesses you sell something for a price and you know

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what revenue you will get – our outcomes are less predictable and our frameworks for driving revenue more complex.

The challenges I think about daily are around data and integration how we get as close as possible to one single view of the customer and how they interact across channels.

How we evolve legacy systems and processes is also a challenge.

How long have Caesars been involved in the UK market?

SS: Caesars Entertainment acquired London Clubs international in 2006, but London Clubs International had been operating in the UK market for over 40 years – so it is certainly one of the oldest and most well established operators.

Much has changed in that time, how is the company performing in what is a very competitive market?

SS: We have certainly seen increased competition in many of the markets in which we operate, particularly in London, but we have had a strong financial performance over the past few years. We have focused on having an efficient operating model and on delivering

exceptional customer service and that is seeing us grow market share.

Has Caesars got plans to compete with Aspers and Genting in building large style casinos in the UK? SS: Not at present. We are focusing on the business models we have and ensuring that they go from strength to strength. We assess opportunities for growth on an ongoing basis.

How challenging has it been to change the face of Caesars?

SS: It has not been my role to change the face of Caesars Entertainment – more to ensure that we embrace Caesars in the EMEA region. We transitioned fully from being London Clubs International into Caesars Entertainment UK in 2014 – embracing the corporate brand to underpin our business, driving the culture in line with the global brand and creating links and opportunities for our customers with our US counterparts. It’s proving a successful USP for us.

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restaurant in one of our properties early next year. Internally we have invested in new systems for analytics and to drive marketing efficiencies. There is development and change planned on some scale in every single one of our properties next year.

Caesars UK has entered the International Gaming Awards this year, which is now into its ninth edition, how important is it to show a unity for the gaming industry at least once a year?

Are we going to see any big changes with Caesars UK in the coming year?

SS: The gaming industry is a relatively small community, even globally, so it’s good to be part of things that bring the community together.

We are in a position now as a company where we have some strong

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company to work for?

SS: Caesars UK transitioned from London Clubs International, which was one of the longest standing and relatively more traditional operators in the UK, to being part of one of the largest, most forward thinking US gaming operators. With that has come a change in culture that I now feel is fully embedded – but change at the core level doesn’t happen overnight. The culture that has been created is driven by having clear and relevant values that unite all our properties and teams - worldwide. We focus heavily on team engagement, training and driving a caring culture for employees and the communities in which we operate. We believe that you

SS: There is always change – we continually look at the product we offer and how we can enhance it and in the past two years we have made a great number of internal and external changes.

2015 has been a year for development – not always total redevelopment of our properties, but using capital wisely and in a targeted way. For us a better way is to have a continuous approach to evolving our businesses in line with the market and opportunity – it’s a strategy that makes us more responsive and nimble.

We have invested in the Empire Casino in Leicester Square by expanding the Carlsberg Sports Bar and creating a bigger poker room – we are also launching a higher stakes gaming area in December to cater to the needs of our customers. We have just opened a new bar and conference venue within Alea Nottingham and will be launching a new celebrity

stories to tell and achievements to celebrate. Awards are a good way of showing our teams that we appreciate and are proud of the developments and progress we have made and the way we approach our business.

What makes Caesars UK a great

can be very performance focused and rigorous about achieving financial goals, but it can be done in a way where everyone is treated with respect and enjoys the journey.

Also being part of a focused executive team that views marketing beyond “communications”, as an

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Interview with Sarah Sculpher integral and broad reaching part of the business has been a personal factor for me.

How difficult is it to market a casino company given the restrictions with socially responsible gaming?

SS: I see it differently. Being socially responsible isn’t a restriction, it’s the right way to do business for any industry.

From a general marketing perspective, we have access to all and every marketing channel that we could want.

We have the ability to contact customers if they have agreed. We can be creative in our approach, offer and our messaging and, as long as we are not targeting messages at young or vulnerable people and comply with customer advice notifications on our communications, we can actively market ourselves.

The scope of what we can do has changed a lot in the last 15 years, but where I would like to see restrictions lifted in the UK is more around availability of product and the prizes we can offer to customers. In land based casinos in the UK, we have demand, particularly for slot machines, and we can’t provide them. Customers don’t understand why, particularly when they can access similar products from their mobile

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phone and at home and play for bigger prizes, but they can’t be offered the equivalent in the safe and social setting of a casino – making it a more balanced way to game.

Responsible gaming is an integral part of our operating philosophy and casinos in the UK are the safest place for people to gamble – all our staff are trained on social responsibility and how to recognise and deal with problem gambling. Our regulatory framework should reflect this, enabling us to provide a product offering more comparable with international norms, and we ought to have a taxation regime

which encourages, rather than stifles, investment and employment.

How different is marketing a casino company in the US compared to the UK? SS: I see many similarities in the programmes and tools available to us – loyalty programmes, in particular, and understanding and analysing customer data to enable us to provide relevant and exciting incentives and offers to our guests.

The primary difference is scale – US casinos are typically larger scale, integrated resort properties.

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Interview with Chief Marketing Officer (EMEA) Caesars UK

In the end of your work for Caesars, whenever that would be, how would you want the company to be perceived by the work you have done?

SS: I would want to be remembered for, if that is what you are asking, as making the

marketing function more efficient and effective – being clearer about the customers we want and what is important to them and not being afraid to embrace new ideas.

In your opinion Sarah what could the government do to help casino operators in the UK be more successful?

SS: More product, particularly slot machines, on a scale with international casino operations.

Casinos are the safest place to have slot machine product with our customers surrounded by well-trained staff who can recognise any problem gambling behaviours and

intervene to protect the very small proportion of our customers who experience problems with their gambling.

Modernisation – ability to offer on-line product in a casino environment. Give customers access to modern games and technology, which are already freely available

on a PC or mobile device, in a safe, integrated gambling environment.

A tax regime which encouraged employment and investment. UK casinos employ many more people in each site than any other form of gambling and drive significant volumes of tourism and revenues into the UK. Stakes and prizes on machines at a level which would be attractive to wealthy tourists and international customers. Casinos contribute significantly to UK exports and this is often not recognised by government.

Do you think advertising on television has helped casino companies increase business?

SS: Certainly from an online perspective – media spend by online casino operators has grown exponentially in the past few years. For us as an operator with the spread of brands and properties that we have it wouldn’t be a cost effective medium. Our approach to awareness and customer acquisition activity is more targeted – either by customer

type or by location and proximity.

In the past year we have used radio, press and outdoor advertising for certain campaigns and PR and digital are strong ongoing tools for us.

Building activities and events into our plans which generate PR coverage, or can appear in listings and get talked about by our customers, are some of the most powerful tools we have. By delivering great experiences to customers that they want to tell their friends about is key in the UK market where there is still a lack of understanding about what casinos have to offer. Our current customers can help dispel some of the myths and break down those barriers to visitation – so focusing on the in-club experience is key.

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GAMING NEWS

DECEMBER 2015

Kerzner rumoured to take control of Baha Mar

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ailed casino resort Baha Mar which was never completed before entering into bankruptcy could be saved by South African casino mogul Sol Kerzner and his business partner Andrew Farkas a real estate banker.

The resort in the Bahamas which cost $3.5 billion to build but still needs another $600 million to complete went into bankruptcy after Chinese investment bank EXIM pulled the plug on previous developers Baha Mar Ltd

for failing to complete the resort on time. Not just this but the main hotel investor, Rosewood Hotels is suing the previous developers for loss of earning because of the delays in opening.

With over 2,000 employees who should of been working at the resort being made redundant before even starting work the whole project was a disaster.

for the Chinese bank and hotel resort partners many of those employees may well have a future again. And with Kerzner having such a good track record in the Bahamas with Atlantis resort before selling it in 2012 many see Kerzner as the perfect person to make Baha Mar a success after such a bad beginning.

Now with established Sol Kerzner rumoured to be ready to offer a way out

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DECEMBER 2015

If it looks like a duck, walks like a duck and quacks like a duck..

It’s a duck!

By Christina Thakor-Rankin

T

he last year or so has seen the world

For those unfamiliar with the con-

of traditional season long-grind Fantasy

cept, fantasy sports or the recent scandal, FS is about a player taking on the role of an imaginary team manager, who is required to use their skill and judgement to create an imaginary team based upon real life players which will then take on other imaginary teams. Points will be awarded based upon the real life performance of the players included in the imaginary team. The imaginary manager who ends up with the most points (or whose team performs the best) is the winner.

Sports dominated by the rise and rise of its instant gratification off-shoot Daily Fantasy Sports (DFS). In a market which was recently forecast to hit revenues of $2 billion by 2020, key players such as Draft Kings and Fan Duel have seen their fortunes rising at a phenomenal rate, attracting high levels of investment from not just the pro sports leagues, but also from the Disney backed ESPN sports channel – but even more recent events look set to change all of this.

DFS works along the same

principles as normal fantasy sports, namely, predicting which players will perform the best, but is played over just the day rather than the whole season, with the outcome determined by a scoring system which is based upon a set of algorithms.

The cause of the recent ‘insider trad-

ing’ scandal was the fairly innocuous act of a DraftKings employee

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prematurely releasing information about the players which might have an impact on the final result, whilst entries were still being submitted.

Accidents happen and it might have be no more than a storm in a teacup where it not for the fact that the same employee who accidentally released the infor-

This mirror-imaging of life is hardly surprising however, when one considers that the oil which keeps the machinery of both society and the gaming sector moving is the same: people, and their interaction with other people.

DECEMBER 2015

mation used to feed the algorithms

the only surprise is that it has taken this

fact DFS as it is today did not even ex-

which is the same information used to

long for some of the regulators to speak

ist as a concept or offering when UIEGA

feed the algorithms which determine the

out. Possibly, this latest story and the

came into being, so logic strongly sug-

results, also happened to win $350,000

suggestions of insider trading and what

gests that UIEGA did not, and could not

in the same week from rival site FanDuel.

that implies in respect of the customers

possibly ever have had DFS in mind

being ‘cheated’ was the final straw for

when this exemption was created.

It goes without saying, that anyone who

those who had thus far been sitting on

has information which could have an

the ‘DFS is skill not sports-betting’ fence.

impact on the outcome or the result be-

By the same logic it therefore cannot be used as an automatic line of de-

fore they submit an entry is clearly at an

The long-held argument is that DFS

fence. Even if it was an unproven as-

advantage compared to someone who

is based upon skill and judgement.

sociation, the recent reports of insider

does not. A joint press statement from

This is in keeping with UIEGA which

trading and use of privileged informa-

DraftKings and FanDuel that they had

specifically exempts fantasy sports

tion for financial gain have effective-

found ‘no evidence that anyone has mis-

games, educational games, or any on-

ly destroyed any robust defence of

used it (the data)’ unsurprisingly failed

line contest that “has an outcome that

‘skill and judgement’, and shown that

to provide the necessary reassurance.

reflects the relative knowledge of the

DFS is as much about the savvy use

participants… and, in the case of a fan-

of mathematical statistical analysis

Anything which is capable of generat-

tasy or simulation sports game, has

to win (or lose) money by predicting

ing such high levels of engagement and

an outcome that is determined pre-

the performance of teams and play-

the levels of revenue which DFS has

dominantly by accumulated statistical

ers, as it is about skill and judgement.

over such a short period of time will in-

results of sporting events, including

evitably attract the attention of regula-

any non-participant’s individual per-

The bottom line is that DFS as we know

tors and public interest organisations,

formances in such sporting events.’

it today is all about: predicting out-

whether it sits in the world of gambling,

comes and winning money.

finance or other. Place it in the context

This original carve out was due to heavy

of the multi-billion dollar American

lobbying by the sports leagues, many

Outside of the US, without the nuances

sports industry, the concerns voiced by

of whom have a financial interest or

of UIEGA and within a fully regulated

various US sporting bodies, the allega-

stake in the fantasy sports sectors,

open betting market such as the UK,

tions of employee ‘insider trading’, and

however the world of Fantasy Sports

there is no debate: the holy trinity of

the comments of the CEO of DraftKings

as it existed in 2006 bears no relation

‘predicting results’, ‘winning’, and ‘mon-

himself when describing the product,

to today’s mega-bucks DFS offering. In

ey’ mean only one thing: betting - as

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DECEMBER 2015

evidenced by the fact that DraftKings

of a ‘gambling game’ which is played for

‘clearly placing bets on events out-

has had to apply for a Gambling Com-

money or any representation of value

side their control of influence, specifi-

mission license before being able to

(or prize).

cally on the real game performance of

open up its doors to players in the UK.

professional athletes,’ and issued both And in a further and somewhat ironic

with cease-and-desist notices, ordering

Within the US the decision comes down

twist of fate, the Nevada Gambling Con-

them to stop accepting ‘wagers’ from

to how the various regulations are

trol Board in considering whether DFS is

New York residents.

drafted and interpreted. Daily Fantasy

gaming or gambling looked at the very

services are not allowed to offer paid

words used by Jason Robins, CEO of

DraftKings has already confirmed its in-

games in the states of Arizona, Iowa,

Draft Kings, from a Reddit thread, where

tent to take legal action through the New

Louisiana, Montana, and Wash-

York Supreme Court. It might seem odd

ington due to local gambling

that action is being taken against New

laws. Massachusetts gambling

York, when the Nevada ruling appears

regulators have also voiced sup-

to have been accepted, however not so

port for regulating daily fantasy

odd when one realises just how much

sports, citing not only the con-

DraftKings relies on New York, and how

cerns about insider trading, but

much it stands to lose by the new ruling.

also money laundering and gaming addiction.

DraftKings has a sizable deal with Madison Square Garden that includes on-

All of this however is small fry

court signage at Knicks and Rangers

compared to the recent pro-

games and a fantasy lounge, and gives

nouncement made by Nevada

them sponsorship on the WNBA’s New

– the US spiritual home of gambling.

York Liberty jerseys. It is estimated that he described DraftKings as being “al-

losing this deal alone would mean a loss

most identical to a casino”, and further

of between $5 to $20m in revenue. It

The premise of traditional sports bet-

compared the concept of Daily Fantasy

also has deals with the New York Giants

ting is to use one’s skill and judge-

Sports as being a cross between fantasy

and New York Yankees whose subsidi-

ment to identify the team or individual

sports and online poker, and repeatedly

ary Legends, is also an investor in the

who will perform better than their

uses terms such as “wager” and “bet-

business.

opponent(s) and be financially reward-

ting”.

ed for it; the premise of fantasy sports

In view of this DraftKings has no al-

is to use one’s skill and judgement to

As the old adage goes - if its looks like a

ternative but to challenge the NY rul-

identify the team or individual who will

duck, walks like a duck, and quacks like

ing. What is less clear is how they will

perform better than their opponent(s)

a duck - it is a duck’. And this was the

fare in the light of the Nevada position.

and be financially rewarded for it.

position taken by Nevada. If it looks like

Whilst it might be easy to argue that

gambling, acts like gambling and uses

the NY decision was made in haste by

For the regulator, DFS is consistent with

the same language as gambling – it is

a state which has no experience of, and

the legal definition of a sports pool un-

gambling.

therefore is in no position to discuss

der Nevada law – ‘accepting wagers on

the nuances of what does and does not

sporting events or other events’ which

The Nevada ruling has since been over-

constitute legal or illegal sports-betting,

includes wagers on the outcome of a

shadowed by the recent events in New

Nevada does.

sporting event, wagers on events occur-

York and the home of DraftKings, where

ring within a sporting event, and wagers

the Attorney General stated ‘Our review

And the spiritual home of US betting

involving a combination of multiple

concludes that DraftKings’/FanDuel’s

and gambling has spoken – if it looks

events. Further they also decided that

operations constitute illegal gambling

like a duck, walks like a duck and talks

DFS also falls within the legal definition

under New York law,’ as players are

like a duck – it’s a duck.

INFINITY GAMING

28

DECEMBER 2015

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INFINITY GAMING

GAMING NEWS

DECEMBER 2015

TCSJOHNHUXLEY sponsors industry awards

T

he 9th International Gaming Awards (IGA) is proud to welcome TCSJOHNHUXLEY the world’s leading supplier of gaming equipment and table game technology on board as a Sponsor of the biggest charity event.

The 9th International Gaming Awards annual chic event is taking place in London’s Savoy Hotel, on the 1 February 2016.

It will unite industry professionals from across the world and allow them to network with talented insiders from across the industry.

The 9th IGA, once again, promises an exquisite line up of sponsors, judges, guests and industry achievers.

Following in the footsteps of its previous successful awards, it will be hosting the biggest and best charity event within the gaming industry.

TCSJOHNHUXLEY is the world’s leading manufacturer and supplier of end-to-end live gaming solutions and services.

With an emphasis on leading edge technology, the product portfolio underpins the company’s commitment to business partnerships, innovation and growth.

Colin Thompson organizer of The IGA commented:” We are delighted to welcome TCSJOHNHUXLEY world’s leading manufacturer and supplier of end-to-end live gaming solutions and services on board as a sponsor and proud that TCSJOHNHUXLEY has once again chosen IGA as the first step to showcase companies most innovative products prior to a busy week in London”More information about event sponsors.

The 9th International Gaming Awards will provide first opportunity to showcase your product to the receptive audience of industry connoisseurs and as always will welcome the most successful operators from around the globe, outstanding leaders and charity supporters.

The International Gaming Awards the most memorable evening of the year with its main focus to support truly deserving charities: Care International and Children with Cancer.

IGA9 Finalists to be announced According to reports from Clever Duck Media the hosts and organisers of the International Gaming Awards (IGA) the finalists will be announced at the end of November or latest begining of December.

News has it that the total number of nominations this year have passed the previous record and more information on this will be announced once the finalists have been released.

Currently the panel of 23 International Gaming professionals that make up the list of judgrs are making their final deliberations and will announce the lucky few that make the finals shortly.

Only on the evening of the awards ceremony to be held on the 1st February at the historic Savoy Hotel in London will the winners be announced.

Clever Duck Media have indicated that seats for the evening will be sold out before the new year, so if you still want to be where the most powerful gaming executives will be, then book your place very soon.

INFINITY GAMING

29

DECEMBER 2015

30

Tragedy opens up questions around communication apps and in-game messaging

By Paul Swaddle - CEO Pocket App

I

In the immediate aftermath of those

f the recent TalkTalk data breach

brought the topic of security sharply back into the nation’s focus, last week’s atrocities in Paris, which saw 129 people killed by militants in seven coordinated terror attacks, acted as a major catalyst in bringing the perceived security, or lack thereof, surrounding communication apps and in-game messaging firmly into the cross hairs of the public psyche.

abhorrent events we saw a plethora of news stories circulating, all attempting to decipher just what methods of communication were being used to plan these attacks, and moreover how these conversations were able to take place without detection from intelligence agencies. With schools of thought ranging from mobile messaging applications such as WhatsApp and Telegram, to in-game messaging on the world’s most popular gaming

The topic of security sharply back into the nation’s focus, last week’s atrocities in Paris

INFINITY GAMING

device, the PS4, the general public could be forgiven for asking the question, “If they are communicating via a form of online messaging, why aren’t the authorities able to monitor them?”

In this article we will explore the challenges that communication apps and in-game messaging present for the intelligence agencies in their bid to curtail future situations like this.

Tackling communication apps first, applications such as the ones mentioned above still allow people to converse with relative freedom by keeping their services encrypted. This brings to the fore yet again the age old privacy versus security debate. On one side, we have the pro-security brigade and the belief that legislation should be passed to enable Governments to ban applications using end-to-end encryption to ensure user security.

Post-Paris, this argument has gathered momentum, as advocates argue that with access to encrypted communications there is a chance that these tragic events could have been averted.

They protest that a ‘backdoor,’ aka a hidden way of circumventing an app’s security, should be afforded to law enforcement for just such an occurrence, enabling them to view suspicious content if required.

DECEMBER 2015

Paul Swaddle is CEO of Pocket App a leading design company in the App Construction world

This isn’t just a UK or Europewide position, I remember reading a quote from CIA Director John O. Brennan recently in which he blamed privacy concerns for undermining the security work his organisation carries out. “We should be sharing a lot more information than we are as a nation, but programmatic, technical, and legal challenges as well as concerns about privacy and the role of government have hampered progress.”

The counter to this argument, the privacy position, contests that the obvious flaw in this plan is that this ‘backdoor’ would no doubt

present opportunities for malicious entry. Moreover, it’s argued that given the increased reliance on encryption from a range of online businesses, the dissolution of end to end encryption would serve the death knell to essential online offerings like internet banking. A survey by BBA and EY showed that mobile and internet banking is now being used for transactions worth nearly £1billion per day, however, how many would feel comfortable knowing that application security had been compromised to allow a middleman from the government to ‘wiretap’ communications?

As I alluded to earlier, it’s not only

communication apps which are under the microscope at present, as in-game messaging is also rumoured to be a potential enabler in the communication of terrorist groups. In fact, Belgian Federal Home Affairs Minister, Jan Jambon, has said outright that the PS4 is used by ISIS agents to communicate, and was selected due to the fact that it’s notoriously hard to monitor. “PlayStation 4 is even more difficult to keep track of than WhatsApp.” To many, the following may sound more in keeping with a science fiction movie or the literary works of George Orwell. However,

INFINITY GAMING

31

32

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INFINITY GAMING

UNIVERSAL APPEAL

DECEMBER 2015

Communication Apps The non-peripheral based communication on consoles may provide terrorists with a channel to effectively converse with one another, from sending messages through the PlayStation Network (PSN) online gaming service and voice-chatting, to even communicating through a specific game.

the non-peripheral based communication on consoles may provide terrorists with a channel to effectively converse with one another, from sending messages through the PlayStation Network (PSN) online gaming service and voice-chatting, to even communicating through a specific game.

As farfetched as it may sound, many gaming experts are of the opinion that an ISIS agent could spell out an attack plan not merely via in-game voice or text chat, but via one of many in-game methods of non-verbal communication, i.e. two Call of Duty players could write messages to each other on a wall in a disappearing spray of bullets or spell out an attack plan in Super Mario Maker’s coins and share it privately

with a friend. To monitor this would require tapping all the activity on an entire console and that may not even be technically possible at this point.

PSN has close to 65 million active users, which is an almost impossible number of people to monitor, and while government agencies are well versed in building profiles of suspected terrorists based on their internet or communication history, it would be far more difficult, if not impossible, to do so based on their console usage.

This recent tragedy has rekindled the age-old question of how much freedom, liberty and privacy we should give up in order to be kept safe. However, the IT community

seems to be speaking in unison on this topic, arguing that the removal of end to end encryption would not only be potentially unworkable and somewhat detrimental to the status quo, it would also expose users to greater threats from the very people the government wants to protect them from. Adding into the equation the fact that the world’s most popular gaming devices are now not only the most effective platform for connecting the world’s friends but also the world’s enemies, and you begin to see the myriad of challenges intelligence agencies are faced with in the ongoing war against a more sophisticated terrorist threat.

INFINITY GAMING

33

34

DECEMBER 2015

Cyprus government name casino bidders for exclusive license

The names of the casino operators in-

the government will reduce the field

exclusivity for 15 years allowing no

terested in developing a casino resort

down to three for the final round of bid-

other casino to be built with the license

in Cyprus have become a little clearer

ding and the license eill be issued to the

lasting 30 years in total.

as Tourism Minister Georgios Lakkot-

winner by the middle of next year.

rypis named those that have already

The casino resort would target visitors

expressed a firm interested by making a

“We aim to grant the licence by mid-

from within a four-hour flight radius

bid to win the exclusive license.

2016 and it will come into effect from

and “Russians are certainly one of the

day one so the winning company will

target markets”, Mr Lakkotrypis said.

Among the six bidders are; Genting, Sun

have every incentive to move quickly,”

The number of Russian visitors in Cy-

International, Hard Rock International,

Mr Lakkotrypis said on Wednesday .

prus, which had been rising over the

NagaCorp and France’s Bouygues leav-

past few years, has dropped this year.

ing just the name of the sixth bidder

The successful companies that will go

“We’re trying to limit that decline to

nameless at present. Companies want-

into round two of the process will be

20%,” he said.

ing to be considered have until the 18th

informed in January 2016. The license

December to lodge their bid and then

will allow the winning bidder to have

INFINITY GAMING

DECEMBER 2015

Macau to see another 10% fall in revenues for 2016 Macau casino operators knew already

Following ten years of huge growth

have been pushing hard for the intro-

but that does not mean they wanted

which peaked at annual revenues of

entertainment to increase tourism and

to be told that more than likely casino

$45 million in 2013 they have fall-

help stop declining revenues, but this

revenues will slump again in 2016 by

en ever since following a huge anti-

new strategy takes time and expense

an estimated 10% on this years figures.

corruption crackdown by mainland

which is not always offset by the in-

China President Xi Jinping which has

creased spend of Chinese tourism.

During a meeting with Chinese territo-

seen the majority of the VIP large

ry’s legislatures this week the chief ex-

gamblers

stay

away

from

Macau.

ecutive of Macau Chui Sai On says that

Indeed many businesses that supply to the casinos in Macau are feeling the

revenues in 2015 will come in at around

However more and more mass market

strain also as casinos decide to spend

$30 billion and that next year expect a

Chinese tourists are visiting the island

less on the declining VIP business then

fall to $25 billion for the world’s larg-

but not helping to stem the declining

they buy less locally so the struggle

est gambling hub. a “frantic gambling

revenue figures. Over the past year or

goes down the line to suppliers.“With

spree” that was “frenzied and uncon-

so many operators in Macau are turning

these games, a player’s dexterity in

trolled” at the Ritz Club casino in May-

their attention to leisure and

driving a racecar, their strategic ability

Hippodrome Casino look at expansion with new purchase Praesepe has sold its gaming arcade

CEO Simon Thomas said”This is a sig-

magnificent range of entertainment fa-

“The Crystal Rooms” to the Hippodrome

nificant new opportunity for the Hip-

cilities within the building. We have

Casino in London’s Leicester Square.

podrome business,” said Thomas. “It

ambitious new plans for the space in

The arcade which is neighbouring the

not only allows us to extend the current

the months ahead, so watch this space.”

Hippodrome was sold for an undis-

gaming offer but delivers a significant

closed fee to the casino company fol-

platform at street level to showcase the

lowing the decision by Praesepe to focus more on their seaside arcade business and not inner city business.

The group owns 71 adult gaming centres in Greater London, but has grown its presence in coastal areas and this move signals a further move in that direction.

“We believe the energy and overall resource required to remain at the top of the game in central London can be deployed more effectively throughout what is a growing business employing some 1,600 staff nationally,” explained Praesepe CEO Nick Harding.

INFINITY GAMING

35

36

DECEMBER 2015

INFINITY GAMING

GAMING NEWS

DECEMBER 2015

James Packer company to build Eilat casino resort?

R

umours are swirling around Israel that Israeli Prime Minister Benjamin Netanyahu will invite James Packer and his Crown Resorts casino company to apply for the casino resort license in Eilat should the country move forward with plans to develop a gaming zone there.

It is no secret that James Packer is a supporter of the Israeli Prime Minister after appearing earlier in the year at a land mark speech by Netanyahu at the US Congress. At the time many observers were asking why a non-jewish businessman would be so interested, now many believe it has something to do with the Eilat casino resort plan that Netanyahu wants to pursue.

Netanyahu during his election campaign promised that he would look at the possibility of legalizing casinos to check the effects it would possibly have on the socioeconomic impact to the country and at the same time helping to boost the economy along with creating jobs.

laundering and rigged games would remove that problem with a legalised casino resort.

So now James Packer the billionaire is favourite among many to win the right to build a casino resort in Eilat, but also do not forget Sheldon Adelson the Sands boss who also owns the Israeli daily newspaper Israel HaYom and could make a strong case for his company to have the option also.

The city of Eilat has for many years been the location where Israeli’s go to gamble on ships as they go out to neutral waters and offer gambling on board, so for a casino to be located there would make sense. Also with the continued accusations that these ships offer money

Texas to get tribe casino East Texas could be seeing their first casino after the Alabama-Coushatta Tribe of Texas believes they have the right to build a casino on their 10,000-acre site.

Following a legal challenge by the tribe to the U.S. Department of Interior and the National Indian Gaming Commission who found in favour of the tribe the casino is expected to be open by early next year.

clan has struggled financially since its first casino was shut down by the state in 2002.

“When we were open before we generated about $1 million a month,” he said. “When we closed, it was devastating to the tribe. … It was a huge impact to lose that kind of revenue, and all those jobs.”

That casino was closed following a legal challenge by the Texas state officials saying that state laws over ruled that of Indian tribe laws.

“This would be a big shot in the arm,” said Carlos Bullock, a spokesman for the tribe who said that the

INFINITY GAMING

37

GAMING NEWS

DECEMBER 2015

39

Russia to legalise online poker in 2016?

O

bservers within Russia believe

payment processors to work with online

operators earning money in Russia has

that the government there will

operators and all will have to pay a set

not been determined and so lobbying

look to regulate online poker

fee for the privilege along with a licens-

behind the scenes by internet operators

ing fee.

is going on to try and find a medium for

and allow their citizens to play poker online once certain controls are in place.

both parties.

Indeed this move could happen as early

Although details are at present unclear as

as the first half of 2016 according to

they are still being drawn up the expec-

How payment processors will be regu-

sources in the country.

tation is that all online poker operators

lated and if they need to be located

wishing to offer services in the country

within Russia has also yet to be decided

However the main stumbling block in the

will be licensed and a fee paid and have a

by the government, but the fact that Rus-

payment processing for websites offering

physical presence within the country, not

sia could very well be legalising online

online poker there, it is believed that

necessarily servers but an office.

poker is getting many European internet

the government will insist that there will only be a limited number of approved

operators excited by the prospect.

At present payment of taxes for online

INFINITY GAMING

40

DECEMBER 2015

Interview with Luke Alvarez CEO & Founder of Inspired

The Infinity Gaming Magazine speaks to one of the most successful entrepeneurs in the gaming industry, Luke Alvarez has built a gaming empire almost single handed and now looks to the far east to expand even further.

Luke firstly thank you very much for taking the time to speak to Infinity Gaming Magazine today, to start off the interview can we firstly ask you where the idea to start Inspired came from?

circle with mobile devices again.

It all started back in 2001 just when the dot.com bubble had burst, how confident were you in the success of your new venture?

mobile gaming back then that propelled Inspired to success?

Mobile was a fast growing segment then. Our slogan now is “[networked] entertainment with an edge.” In retrospect, that’s where we were right from

Well, we were young and optimistic

the beginning. Our focus has always

I’ve always been interested in gaming.

– we didn’t know much but we did un-

been on cool content for players, de-

My father, Al Alvarez, wrote the seminal

derstand technology implementation

livered via brilliant technology. Mobile

book on poker, ‘The Biggest Game in

and games and we were resilient - we’d

was a cool platform back in 2001 but it

Town,’ about the World Series of Poker

been through the .com boom and bust

was still very limited in terms of what

in Las Vegas in the 1970’s and 1980’s

so we knew about grit and persistence.

you could do with games – monochrome

and I spent many childhood April’s

LCD, minimal bandwidth, tiny screens

poolside at the Golden Nugget, while he was over the road at a smoky table in Binion’s Casino. I also had a keen interest in technology, having spent my

– I think we migrated onto machines

What was the first ever thing the company sold and can you remember who your first client was?

graduate years in San Francisco and the

partly because you could deliver much better experiences to players on those devices and no-one else seemed to be focused on out of home as a venue for

1990’s working for American software

I think it was an Artful Dodger mobile

companies.

logo. Very London and very millennial,

networked games.

in retrospect. It was mostly ringtones

Now we’ve brought it all back togeth-

The original idea for Inspired came out

and logos back then, with a few very

er, omnichannel across VLT’s, Screens,

of my two years in .com and media – it

simple non-gambling games. We moved

Desktop and Mobile. We’re now one of

was about using mobile networks to

into Skill With Prize on networked bar

the top three Mobile content providers

distribute simple games to first genera-

machines in 2002 – the first games on

in betting in Europe, the largest VLT sup-

tion GSM phones and collect micropay-

there were established classics like

plier in Europe and we’re one of the first

ments via reverse bill SMS. That eventu-

Who Wants to Be a Millionaire.

suppliers in the industry to launch new

ally morphed into networked VLT’s with note acceptors and now we’re back full

INFINITY GAMING

omnichannel games simultaneously.

Do you think it was the focus on

DECEMBER 2015

MIKE TYSON Mike Tyson is a global sporting legend and his brand is a great fit across our product lines, Virtual Sports, Slots, Casino and Social Games. It’s entertainment with an edge. We’re looking forward to creating a whole portfolio of Tyson branded games. He’s a huge star both in the USA and Europe, and also in China.

Many entrepreneurs say that the early days of launching a company and the challenges that you face during this process are the most exciting, do you agree?

ing spent 2010-2015 expanding into

Gaming (SBG) VLT sector in the UK and

various EU and emerging markets from

our continuously updated technology

the UK base we built in our first decade,

is still the most innovative and exten-

we’re now pushing into China and the

sive on the market. It is best in class.

USA. Every stage is fascinating.

The industry has come to us and we’ve now seen key markets like the UK, Ita-

Since the beginning, Inspired have found huge success with the video lottery terminal business and also Virtual Sports, how did the company move into those areas?

ly, Greece and now the USA and China

of revenue and the 10th employee are

We lead in VLT because we’ve had a

Virtual Sports started with the foot and

big milestones, but so is the first £100m

clear vision from the start to focus on

mouth crisis in the UK as a filler for

and the 500th employee. Different

networked intelligent game delivery -

when live horse racing was cancelled,

stages bring different challenges. Hav-

we pioneered and led the Server Based

No, I think it’s all exciting. In many ways it’s tougher and more interesting keeping speed and momentum at scale whilst staying organised, than it is pushing hard with a tiny business and a

move towards full fledged SBG VLT’s. In the end it’s inevitable that most delivery devices for gambling will go networked, so we’re riding a wave.

small tight team. Of course, the first £1

INFINITY GAMING

41

42

DECEMBER 2015

Interview with Luke Alvarez but from that ignoble beginning it’s now

sports, trainers or fast fashion. It’s

rolled into >30 countries worldwide,

entertainment. I have friends who

50,000 venues and over 300 web and

spend all their disposable income

mobile sites. In Italy our Virtual games

travelling the world to jump off

are >20% of bets, in the UK > 10% of

cliffs wearing wingsuits - pretty

OTC bets and in China Sports lottery

risky stuff! Should wingsuits be

venues > 30% of tickets! We are the

banned? I don’t think so.

world’s leading supplier, generating over $10bn of bets per year for our cli-

My management team and I

ents.

have spent time with the charities and professionals that work

There has been a huge amount of controversy over Fixed Odds Betting Terminals (FOBTs) in the UK press. With Inspired leading the supply of those machines, are you and the company amazed by their success for bookmakers?

with problem gamblers to understand it better so we can assist in preventing it. They tell us that the people they deal with have problems with gambling across all types of products and because of problems in their lives – grief, isolation, depression, etc - not as

We have made it clear that we do not

a result of specific products. The

want problem gamblers playing on our

countries with the worst levels of

machines and we are renowned as a

problem gambling – Brazil, Japan,

supplier that is leading the charge on

etc. - are the countries with the

responsible gambling. We work closely

highest levels of prohibition, so

alongside operators, the Association of

it happens illegally in the black

British Bookmakers (ABB) and the gov-

market. The UK has amongst the

ernment Department for Culture, Media

lowest levels of problem gam-

and Sport (DCMS) and have taken the

bling in the world. You don’t ban

lead in implementing the new machines

vodka in pubs because there are

Code of Conduct and the new player

alcoholics in the world. You work

protection functionality. The latter is

on treating and preventing the

amongst the most advanced functional-

psychological causes of alcoholism.

ity in the world for player protection on machines.

I don’t think the success of the B2/B3 machines is surprising – the games and

Italian Virtual Sports market.

The company now sells its products to Europe, Asia and South America, which is the most lucrative market so far for Inspired?

the machines are much more exciting

However, one of my strategic focuses for Inspired is expansion into high-growth geographies - our low-cost, wide-area solutions are perfectly designed to

and fun than the old mechanical fruit

Europe is currently our most lucrative

meet the needs of large emerging regu-

machines that your granddad played.

market. Currently we have market lead-

lated markets.

ing Virtual Sports and VLT positions in Problem gambling is about the person

the UK and Italy, the world’s two most

In the last year we have also announced

not the product. Most of our players

technically advanced distributed gam-

the launch of our Virtual Sports into

play the machines for fun, spend what

ing markets. In Italy we launched our

Georgia on Adjarabet’s website, across

they can afford and enjoy themselves. I

Virtual Sports products as a brand new

online and retail channels in Kazakh-

don’t see that it’s any more or less ra-

sporting event in 2014 and generated

stan with Olimp and in Belgium with Cir-

tional than the large sums people spend

over $1.5bn of bets in the first year, giv-

cus Group’s online and mobile platform.

on satellite TV subscriptions, extreme

ing Inspired 95% market share of the

In 2014 we signed deals in the Philip-

INFINITY GAMING

DECEMBER 2015

pines and in Colombia and this year has

Racing game “Lucky Racing” has been

engagement. Inspired is actively work-

seen us become the first company to

live in over 2,000 lottery-betting shops

ing alongside countrywide regulators

launch Virtual Sports in these territo-

in the Hunan Province since 2011 and

and local partners throughout Asia, to

ries. Looking ahead, we will be focusing

is the best performing lottery product

educate them and expedite the imple-

on expansion in AsiaPac, as well as Latin

in Hunan. Our virtual Football game,

mentation of new regulations. We have

America and the USA.

known locally as “e-Ball”, is now live in

a small team based in Manila, Beijing

over 3,000 venues in Jiangsu Province

and Hong Kong, but that will grow.

You recently went to a trade delegation with Chancellor George Osborne to China, how important a market is China to Inspired?

– the largest sports lottery Province in China.

Will this be the start of more business in China for Inspired?

China and Asia cannot be ignored by an-

What business does Inspired have in the US market at present?

We are actively involved in discussions to launch our products in the

yone. It is an amazing place with fantas-

At the moment we are happy with the

US, the Nevada Gaming Control Board

tic opportunities, if approached right.

process in China. Right now it is a small

and Commission has adopted a regula-

piece of the total but it will increase and

tion change that will soon make Virtual

be more lucrative going forward.

Sports a reality.

Since the China deal Inspired has gone further and sealed another deal in the Philippines to supply virtual games, but you don’t currently have any bases in Asia, will that change?

Overall, how did G2E Las Vegas go for the company and is the US an important market now or for the future?

It must have been a successful trip as Inspired have won a contract to supply China’s national sports lottery with virtual games, including football and horse racing. How competitive was the rights to that contract?

There are huge opportunities for gam-

G2E Las Vegas was a big success for Inspired. As the second biggest gaming

ing in China, but it’s a long process. We

Gaming markets are opening up all

show of the year after ICE, it’s a great

have established key partnerships in

across AsiaPac. For the governments in

opportunity to showcase our industry

the region, which have enabled us to

question, there is a huge opportunity to

leading products to both existing and

enter the market. Currently our Virtual

implement and operate new legislation

potential customers, as well an oppor-

Sports rapid-draw lottery products are

and technical standards that protect

tunity to meet with partners and gov-

supplied to the National Sports Lottery

players and generate tax revenue. For

ernment officials.

(NSLAC) in China - our Virtual Motor

us the process is education and micro

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GAMING NEWS

DECEMBER 2015

South Korea to increase penalty for illegal online gambling to life in prison

T

he South Korean government are planning much stronger penalties for illegal online gambling operators both working within the country and offshore.

According to the National Police Agency (NPA) online gambling in South Korea is becoming a major problem as more and more Koreans gamble online which is a crime in the country along with nationals visiting casinos.

Galaxy Entertainment has biggest revenue share for October

To this plans are being drawn up to increase the penalties for those caught, currently the punishment for operating an illegal online website in the country are a maximum of 7 years in prison and a fine of up to $62,000.

Under the new laws running an online gambling website will be classed as participating in a criminal group enterprise with a maximum sentence of life in prison.

“With the charge of criminal group organization, the operators will be subject to harsher punishments of up to life sentences,” a NPA official told the Korean Times.

Online gambling is seen as a major problem now in South Korea as Citizens are largely prohibited from partaking in any sort of gambling.

Revenues maybe down in Macau for a 17th straight month but for Galaxy Entertainment the voted for Casino Operator of the Year at the 2015 International Gaming Awards things are a little brighter given that they now have the largest share of revenues in the world’s largest gambling hub.

According to figures released for October Galaxy Entertainment which is owned by gambling mogul Lui Che-woo and controlled by his son Francis Lui now have a 24.7% share of the gambling market which is worth some $2.51 billion. Next comes long time leader in revenue share Sands China with 23.1% and then SJM Holdings with 20.6%.

Lower down the order of revenue share are; Melco Crown Entertainment with 13.%, Wynn Macau on 9.3% and MGM China 8.7%.

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46

DECEMBER 2015

How do we Gamble Responsibly?

By Liz Karter To find out more about Liz Karter and her work visit these links: www.levelgroundtherapy.uk - www.lizkarter.com & Liz Karters Books

T

here are some excellent, eye catching TV advertisements promoting responsible gambling. Ray Winston, actor mostly known for his “hard man” roles, tells us that he “gambles responsibly”. A great idea, making us think carefully about the risks of gambling, if even a tough guy such as Ray takes them seriously. And yet, for me as a gambling treatment provider, the bit that maybe is missing from most people’s basic understanding of problem gambling is what responsible gambling actually is.

tion- drink responsibly. If we were to ask any passer-by in the street what responsible drinking is, they would probably reply that drinking responsibly is somewhere on the spectrum between stopping whilst one can still walk across the bar in a straight line, right through to avoiding drinking during the day at home, alone. Unlike gambling, with alcohol, we are all aware there are very clearly defined physical changes to indicate that we are teetering on the edge of becoming irresponsible. We therefore have a clear idea of how to drink responsibly.

If we think about it, in the UK we have the same message delivered regarding our alcohol consump-

Ask the same passer by what responsible gambling is, they might at best come up with an answer that says it is

all about managing money. In my experience, they would say something including that to gamble responsibly one must not gambling with more money than is affordable. Most people I have found - from teachers to taxi drivers - if they learn that I am a problem gambling treatment expert are quick to recount a story of a friend or family member of theirs who they saw waste way too much money on their gambling habit. They are equally likely to be surprised if I explain that the underlying reasons for that might well have been that the person concerned was trying to manage troubling thoughts and feelings by gambling.

There lies a key difference in society’s general understanding of alcoholism and general understanding of problem gambling. Even the language we use indicates that with alcohol misuse we attempt to “drown our sorrows”, therefore we have even in that simple phraseology a protective factor against potential alcoholism - we communicate we understand that we might drink irresponsibly when we feel bad. We are inclined as a society to know, therefore, that to drink responsibly we should avoid regular drinking when depressed.

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DECEMBER 2015

The danger is that with gambling we just do not get this, unless we work in the field of gambling addiction. In fact, I often learn from conversations even with other addiction treatment providers working with drugs and alcohol, for example, that even they did not understand that gambling addiction is about so much more than just money.

In fact even some regular, experienced and previously responsible gamblers are being taken by surprise nowadays by the many new gambling products available, particularly when crossing over from land based to online products. When crossing, they fall down the gap between responsible and irresponsible gambling created by their lack of understanding of how playing casino games online might feel very different to playing their familiar land based casino games. They might miss for example, that part of gambling responsibly online means that one needs to keep a closer eye on how much money is being spent as it is so much easier to lose track of that when not handling cash. With alcohol we might know that to drink responsibly we might need to avoid

regularly drinking large amounts at home when feeling low. Now that it is possible to gamble at home alone, we need to understand that to gamble responsibly, similar guidelines apply.

So, if we were to ask Ray Winston to tell us how- money aside- he gambles responsibly, what might he then say?

• I avoid gambling as a way to regularly make me feel better when I am stressed and depressed • I avoid gambling when under the influence of drugs or a lot of alcohol • I avoid gambling in the early stages of getting over an addiction of any other kind • I avoid gambling if I felt a sense of panic when losing money – no matter how much • I keep an eye on how much time I spend gambling - especially if going through a life crisis.

Of course, I am not suggesting that television advertisements for responsible gambling could, or should, contain quite so much information but, in my professional opinion, we do need to work to find a way to help people to understand what gambling responsibly really is.

I do not think that understanding how to gamble responsibly will stop those who have deeply rooted life problem seeking solace in gambling or an addiction of any kind, but having an understanding of what responsible gambling is, might help a good few from falling down that gap between responsible and irresponsible gambling. Gambling responsibly is about doing much more than monitoring your money; it is also about monitoring your mood.

If our mood is generally good, it might be very nice to spend an evening gambling to forget our day to day responsibilities. In my article of last month we touched on the lack of value that history evidences prohibition to have, and that one of the reasons for this was our natural need for a transcendent experience. It is fun and absolutely okay to gamble to leave responsibilities behind now and then. After all, an essential part of the gambling experience is the fun of taking a healthy risk and being in delicious anticipation; “the will wont I win?”

As a professional poker playing friend of mine, who once got into a bit of trouble with gambling, said to me, “Liz, there is nothing wrong with wanting to escape, as long as you can come back. Wanting to come back has always been my problem!” He maybe could have benefitted with a chat with Ray Winston...

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GREAT PLACE TO PLAY GREAT PLACE TO WORK If you have a passion for excellence, there could be a place for you on the Rational Group team.

Rational Group employs industry-leading practices in customer service, product development, payment security, game integrity and player fund protection, and holds more online poker licenses than any other e-gaming company. Rational Group applies the same high standards to looking after its people, and has consistently ranked in the top 20 best UK large companies to work for by the Great Place to Work Institute.

The growth doesn’t stop there, though. PokerStars and Full Tilt are now spreading out into other gaming sectors, and Rational Group is recruiting right now across a range of fantastic roles in its market-leading poker business and rapidly growing new verticals of casino, sportsbook and social. Come join the team.

Operating gaming and related businesses and brands, including PokerStars, Full Tilt and the European Poker Tour, Rational Group is the largest poker business in the world, having dealt more than 178 billion hands online and hosted close to 600 live festivals since 2004.

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GAMING NEWS

DECEMBER 2015

49

Pennsylvania pass vote on internet gambling Latest Chinese online gambling raid with 1 million customers

P

ennsylvania moved a step closer to online gambling this week as the House Gaming Oversight Committee voted in favour of the bill allowing for online gambling in the state to go to the senate for a vote after passing the bill 18-8.

It would be the third major gambling expansion in the state should it be allowed within six years, however it is still not certain that the portion of the bill allowing for internet gambling will be passed as the bill contains other possibilities for the state to make law instead of online gambling which include increasing slot machine at race tracks and at airports so long as they are

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50 miles plus away from current land based casinos.

Should online gambling be allowed only land based casino operators can apply for a license which would cost $8 million, with a 14% tax on profits and another 25 tax on profits set aside for local economic development.

Moving forward with the bill to the senate will take some time and a vote even longer once debated, it will certainly not be this year observers say but the possibility of Pennsylvania being the fourth state allowing for online gambling is now a distinct possibility sometime in 2016.

C

hinese police busted an online gambling syndicate with over 1 million registered customers on its books with 90 suspects taken into custody according to lo-

cal media sources there.

The police said that the seven illegal gambling websites attracted more than 120,000 daily visits to online lottery style gambling with a value of 5 million Yuan in three weeks of business.

In 2015 police have closed and seized more than 3,000 bank accounts at 14 different banks, arrested more than 30,000 people involved and destroyed 12 syndicate offices in the southern provinces of Hunan and Guangdong in their fight against online gambling which is illegal in mainland China.

According to reports police say that the latest bust on illegal gambling could be the biggest ever valuing the illegal business at an amazing $78 billion.

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DECEMBER 2015

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GAMING NEWS

DECEMBER 2015

Bitcoin used by ISIL terrorists?

I

t appears that after the atrocities in Paris on Friday the world’s hackers including Anonymous

are on the case against ISIL terrorists and the latest news from the underground world of hackers has concerns for the online gambling community.

In a post online the Ghost Security Group who are an anti-terrorism group of what they call themselves “ethical hackers” standing in the front lines of the digital war against ISIL, have claimed that over $3 million is hidden in Bitcoin currencies to fund terrorism overseas.

A senior hacker was recently interviewed by a reporter and claimed that ISIL are extensively using Bitcoin

The news about Bitcoins and terror-

to join together in hunting down ISIL

for funding their operations. However

ism again stokes the fires of those

funding on the web including Bitcoin

hackers who have found them hidden

opposed to Bitcoin being used as

currencies among other strategies.

on the dark web as claimed have

a virtual currency and the possible

Only this week Anonymous has of-

managed to shut down the currency

uses of it.

ficially stated they will use all their powers to destroy ISIL.

and have reported much of what they have found to US and International

This is just the start of what seems to

governments.

be a concerted effort now by hackers

Fantasy Sports illegal in NY says attorney general

D

aily fantasy sports in New

The announcement comes as another

their own mind before the investiga-

York is to cease operations

major blow to an industry that has

tion is done.

as the attorney general

seen many states now turn against

“Our investigation has found that,

claims the games constitute illegal

what was a hugely successful busi-

unlike traditional fantasy sports,

gambling, DraftKings & FanDuel two

ness for the operators.

daily fantasy sports companies are

of the biggest fantasy sports opera-

engaged in illegal gambling under

tors who work in an industry worth

With federal prosecutor Preet

New York law, causing the same kinds

billions is doing so by breaking New

Bharara announcing his office is to

of social and economic harms as

York gambling laws says Eric Schnei-

investigate whether fantasy sports

other forms of illegal gambling and

derman New York’s head lawyer.

violates federal gambling laws it

misleading New York consumers,”

looks like many states will make up

Schneiderman said in a statement.

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The Ritz Club 150 Piccadilly, London W1J 9BS +44 (0)20 7499 1818 www.theritzclub.com @TheRitzClub

GAMING NEWS

DECEMBER 2015

Movie stars open Studio City

R

obert De Niro, Leonardo Di Caprio and Martin Scorsese joined Lawrence Ho and James Packer in celebrating the opening of Studio City today in Macau in what is hoped to be the first type casino resort focussing on leisure and tourism.

Studio City has so far cost $4.4 billion to develop which is financed between James Packer and Lawrence Ho and their respective companies and the film promotes the casino resort.

The movie stars and legendary director where there presenting their short promotional film for Studio City that is rumoured to have cost near $100 million in total and also featured Brad Pitt call “The Audition.”

The hefty bill to get the movie stars to make the film seemed of little concern to Packer as De Niro introduced the clip on stage on Tuesday, with the Australian laughing enthusiastically to each of the star’s stories.

Taiwan mulls possibility of casinos once more Taiwan residents in outlying islands may well again be asked to vote on allowing casinos to be built in the country after the local government Referendum Screening Committee approved a proposal to hold a referendum in 2016.

The vote is expected after Taiwan’s presidential elections which takes place on the 16th January and before the swearing in of the president in May. It will now be sent to the Taiwan premier for approval should this occur then supporters of casinos will have to get 5% of the 82,000 residents of Penghu island to agree to a referendum for the committee to organise the process, however back in 2009 over 17,000 residents of the islands voted down the plan

for casinos to be developed so an uphill struggle is expected this time around also.

On Matsu island the residents there have already voted in favour of casinos for foreigners to gamble in the hope to increase tourism however since that vote in 2012 the process to move forward has been stalled and no legislation so far has been enabled.

But the most important factor is China, so far the government has said it will not allow Taiwan residents to gamble and has not indicated whether it will issue visas for Chinese residents either to gamble.

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GAMING NEWS

DECEMBER 2015

Caesars move out of three Ohio casinos

C

aesars Entertainment has exited Ohio after selling their stake in its three casinos there to partner Rock Gaming. The casino giant sold its remaining 20% and said it was now transitioning the operation of its three Ohio casinos to its partner.

That means Caesars will remove the Horseshoe name and brand from the casinos along with taking away the Total Rewards customer loyalty program.

It was announced earlier in the year that the Horseshoe Cleveland, Horseshoe Cincinnati and the ThistleDown Racetrack casino were being sold back to the majority owner Rock Gaming who will now own 100% of the properties.

“We view this as an opportunity to leverage our unique culture and vast network of companies to grow the business and further connect the casinos to the downtown areas where they reside,” Rock Gaming CEO Matt Cullen said in a statement.

The partnership between Rock Gaming and Caesars began back in 2010 with the Horseshoe Cleveland opening in 2012.

“We wish Rock Gaming, and especially our colleagues on the front lines of these properties, continued success,” Caesars Entertainment Operating Co., CEO John Payne said in a statement.

Rock Gaming said that a new loyalty scheme and rebranding of the casinos will all be announced in the coming months.

The Horseshoe Casino Baltimore which Rock and Caesars operate and which opened last year was not part of this latest deal.

Scientific Games boss to retire Scientific Games Scott D. Schweinfurth, Executive Vice President, Chief Financial Officer and Corporate Secretary, has announced he will be retiring from the Company. Mr. Schweinfurth will continue in his role through the Company’s year-end financial audit and filing of its Form 10-K and the appointment of his successor; and he will work closely with Scientific Games management to ensure a smooth and successful transition of responsibilities.

The Company has initiated a search process and retained Egon Zehnder, a leading executive search firm. The Company plans to consider both internal and external candidates to fill the CFO position.

The Company also announced that Michael Quartieri has joined Scientific Games as Vice President and Corporate Controller. Mr. Quartieri most recently served nine years as Senior Vice President, Chief Accounting Officer, and Global Controller for Las Vegas Sands Corp. Previously, he had a 13-year tenure at Deloitte & Touche, rising to the position of Director of Audit and Assurance Services and specializing in gaming and hospitality clients.

Scientific Games President and Chief Executive Officer Gavin Isaacs said, “We welcome Mike to Scientific Games and to our finance and accounting team. I am confident that his leadership, experience and wide range of capabilities will benefit our organization and all of our stakeholders as we grow and evolve our business.”

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GAMING NEWS

DECEMBER 2015

Optimal Payments Becomes Paysafe in Game-Changing Global Rebrand

New brand identity, logo and website to reflect Paysafe’s visionary position in payment processing market

O

ptimal Payments, has announced its new brand identity and company name, Paysafe.

Paysafe now forms a powerhouse in the payment processing market. The company’s purpose is to offer relevant solutions for every payment eventuality.

The company’s business expertise includes the marketleading digital wallet and Stored Value brands Skrill® and NETELLER®, a white-label invoice issuing and instalment product portfolio, payolution®, which is specific to the German, Austrian and Swiss markets, the worldwide marketleader in prepaid payment methods for the internet, paysafecard®, and FANS, a fully-integrated mobile engagement solution which helps venues and content providers engage their customers while providing monetisation tools.

Paysafe’s B-to-B portfolio offers 360 degree global merchant solutions and tools to enable easy transactions between businesses and their customers. These include payment gateway solutions, merchant onboarding services risk management and a comprehensive virtual back office for dedicated end-to-end support. Paysafe also offers a suite of pre-paid Card Solutions as well as award-winning issuing and acquiring services.

Commenting on the new brand launch, Joel Leonoff, President and Chief Executive Officer of Paysafe, says: “At the

heart of today’s online business requirements is the need for a robust payment strategy that is both seamless and secure for merchants and customers alike. Merchants face a variety of challenges including the constant evolution of technologies, changing consumer behaviours and a wide variety of currencies.”

Leonoff added: “Paysafe is the meeting point between businesses and consumers. Through our rebrand, we aim to redefine the role of the payments provider. This is the very definition of Paysafe; to be relevant at the point of every payment.”

Paysafe’s contemporary logo includes a “spark” symbolising the meeting point of payments. Its overall visual identity presents a fresh and modern design, and the company’s newly-designed website, www.paysafe.com, is fully responsive to accurately present the company’s full portfolio of products and services for today’s consumers and businesses.

The launch of the Paysafe brand is the pinnacle of what has been an exceptional year for the Company. In August 2015, it completed the transformational acquisition of Skrill Group, Europe’s leading digital payments provider.

The deal, which was worth €1.1 billion (US $1.2 billion), has been recognised as one of the most prominent events of the LSE AIM market in 2015.

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