Infinity Gaming Magazine March 2022

InfinityGaming www.gaming-awards.com | ISSUE135

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08 UAE & GAMING

20 PRODUCT PLACEMENT

40 SLOT MANAGEMENT 101

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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4 EDITOR NOTES Editor welcomes you to the latest edition of Infinity Gaming Magazine.

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

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UAE & GAMING

16 BATTLE FOR LOTTERY BATTLE FOR THE UK LOTTERY

20 PLACING THAT PRODUCT

24 IGA2022 FINALISTS LAS VEGAS FOCUS

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40 SLOT MANAGEMENT +

NEWS & MORE NEWS from the gaming industry

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Lana Thompson - Editor in Chief - “Love & Peace”

Welcome to the latest edition of the In-

I would like to thank all our superb

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of “Save the Children Charity” we ask

perb review of Las Vegas, we take an

you to donate generously. As many will

in-depth view on the battle for the UK

know it is International Women’s Day

Lottery and consider the possibilities

on the 8th March and we hope on this

for the UAE and gambling. We also have

day we can all support our charity ef-

our insightful articles by Andrew Cos-

forts and show our need to bring peace

grove and Lynn Pearce.

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to the region.

Next time we catch up will be after the But let us focus on more positives, the

IGA, so good luck to all the finalists.

Women in Gaming Diversity Awards are still open for nominations so please do

As always- “May the Force be with you”

enter on the website. Also of course we

- Star Wars

are just over one month from the 2022 International Gaming Awards held on

Regards,

the 11th April again at the stunning

Lana

Savoy Hotel. I think we all need to relax and the ceremony will give us some escape from the world’s problems over the last 3 years, we truly look forward to seeing you all there, it will be a very special time.

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The Editor

In Partnership within

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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 products, technology and current affairs with the sector the Infinity Gaming Magazine is delighted to showcase our superb line-up of contributing

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 re-engineering, project management, research, business analysis and development, to start-ups and

established multi-national operators and providers, gambling regulators, 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

Teresa Tunstall – Independent Gaming Consultant After many years of working in casinos in the UK and on USA ships as a croupier and inspector, Teresa turned from ‘poacher to gamekeeper,’ spending 16 years with GamCare, who offer help and support to those who develop problems with their gambling.

Working closely with the betting and gaming industry, She developed strong links delivering Social Respon-

sibility and Problem Gambling training around the world, Teresa now works independently consulting on all issues relating to Social Responsibility and Problem Gambling.

To contact Teresa regarding consulting please email:

Andrew Cosgrove - Slots Guru Andrew Cosgrove is a seasoned slot operations veteran and certified project manager with over 24 years of hands on experience in Latin America and the Caribbean. Andrew has worked on both the operator and supplier side of casino slots and continues to help clients succeed and exceed customer expectations.

Andrew can be reached at andy.cosgrove@hemingwaycasinoconsulting.com or see http://hemingwaycasinoconsulting.com/

Lynn Pearce Lynn has extensive senior management experience in the gaming industry, with over 18 years of proven success, having launched more than 30 casino, live casino, poker, sports betting, lottery and esports brands globally.

She is currently CEO of PLaza Holdings (Ontario) Inc.

Tim Cullimore From dealer to CEO in the U.K., Europe and North America, Tim has pretty much seen it all in Casino gaming. For over 40 years, from running slot rooms which needed to frisk for guns to the Ritz in Mayfair, arguably the most luxurious casino in the world, Tim has never stopped challenging what we think we know about casinos.

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Tim is a well-respected Consultant to the gaming industry, encompassing project management and operational analysis, as well as representing and advising some key manufacturers within the industry. Tim is a renowned conference speaker and also proud to be visiting lecturer at the University of West London College of Hospitality and Tourism.

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UAE and the wider Middle-Eastern gaming landscape

By Ryan Murray

T

he establishment of a solid gaming market in the MiddleEast would pre-empt a colossal commercial opportunity. The comparative riches of this region versus others are well-documented, but it’s internal gambling appetite is a dynamic that is often overlooked. In a landscape traditionally dominated by conservative rhetoric on a number of life’s ‘vices,’ could we be seeing a different narrative evolve?

This article probes into the current and prospective presence of gaming operators in the area, as local discussions around hosting integrated resorts here increasingly percolated. Given recent developments, particular focus will be attributed towards the UAE, where Wynn Resorts have announced their intention to construct a new IR in its Ras Al Khaimah emirate.

Although one of the more liberal governance systems in the Middle East, a case study into the UAE’s approach may shed some light on the potential expansion of gaming into neighbouring territories. Indeed, their recent relaxation of societal rules around alco-

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hol consumption and sex before marriage, with gambling likely to be added to this list, could serve to catalyse a wider regional response.

Competition between gulf states to attract tourists has been as fierce as ever in recent times, and is now accentuated by a global pandemic that shows only tentative signs of abating. Will a combination of these factors propel Middle-Eastern lawmakers to take an unprecedented step towards gaming?

In the UAE, a number of its emirates seem increasingly receptive towards embracing the gaming sector. Wynn’s IR venture is the crystallization of years of gradual movement towards gaming pursuits in the federation. Landing in the busy emirate of Ras Al Khaimah, the new resort will be constructed on Al Marjan, a vast, man-made island cultivated on 2.7 square miles of reclaimed land. The ambitious development is not lacking infinancial support, with the Las Vegas-based firm ploughing a $2billion investment into the project.

The Gulf state has been open about its desire to drive further footfall through its borders, regardless of whether this

comes as a result of business or tourism enterprises. The carrot of long-term visas for re-locating entrepreneurs, coupled with the aforementioned reforms in its attitude towards sex and alcohol, serves to promote the likelihood of increased traffic. Thiscentral government sentiment is shared by a number of leadership officials in itscomponent emirates.

In 2017, Ras Al Khaimah’s local authorities stated their intention to preside over a substantial uplift in tourism visitations, targeting 3 million holidaymakers per annum by 2025. In the last full year prior to the pandemic, the emirate bore witness to 1.1 million tourists hitting its shores. And, although this optimistic objective has been somewhat undermined by the spread of COVID-19, it hasn’t exactly blown it out of the water. At the pandemic’s peak, the global tourist market slumped to a 75% decline versus its like-for-like performance. In RAK, the comparative figure was represented by only a 25% drop-off.

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represented by only a 25% drop-off.

However, within the context of gaming, it’s how the emirate wants to covert this considerable commercial opportunity that piques interest. Although no party, on either the corporate or domestic side of Wynn’s new adventure, has confirmed whether real stakes gambling will feature, there are certainly some suggestive activities towards this type of activity. The operator has already confirmed that a defined ‘gaming area’ will be incorporated into the resort. Moreover, the emirate has already moved to appoint an internal legislative body to control gaming endeavours, through its tourism’s board creation of the Department of Entertainment and Gaming Regulation. Surely this is a signpost of RAK’s desire to introduce formal gambling practice?

Dubai have long since flirted with the concept of gaming, a development perhaps to be expected in the context of its more cosmopolitan environment.

Indeed, Dubai International Airport, recorded as the fourth busiest airport on the planet in 2019, facilitates the arrival

of approximately 86 million guests each year. The temptation to cash in on this, through any and all means possible, seems to be increasingly challenging to repel.

In April last year, regional leaders had to quash rumours in relation to gambling licenses being imminently allocated to gaming operators. Furthermore, the building of several ‘resorts’ throughout the emirate feels a lot like a territory positioning itself for its next strategic move. Industry giants MGM and Caesar now have vested interests in Dubai, with endeavours on ‘The Island’ and Bluewaters Island respectively. Caesar’s first foray into a non-gaming enterprise was launched in 2018, whilst MGM eagerly await final completion on three luxurious new hotels located on ‘The Island,’ part of a 300-strong entourage of artificial islands built off Dubai’s coastline.

But do the United Arab Emirates’ 10 million residents even have an appetite to become punters? And is there enough external interest to further supplement a gambling sector?

In a nutshell, yes. In fact, this positive response is relatively resounding in nature. A colossal 90% of its population are of ex-patriate persuasion, and domestic tourism accounts for a third of the state’s total travel industry. Given that these communities will most likely have tolerable attitudes towards gaming, a considerable opportunity exists.

Furthermore, of its 22 million incoming visitors, the vast majority are natives reigning from lands of significant domestic wealth, with residents from India, Germany, the United Kingdom, and Russia, accounting for the bulk of arrivals.

However, although the potential for gaming to be a success in the UAE feels tangible, it’s much more difficult to judge the rest of the Gulf contingent. Of the six nations that comprise the Gulf Cooperation Council (the UAE plus Bahrain, Kuwait, Oman, Qatar and Saudi Arabia), the United Arab Emirates have traditionally, and particularly in the contemporary context, been the most liberal in its policy assertions. It could therefore be reasonably argued that the proliferation of gaming in the region may end at the Sheikhdom’s borders.

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could therefore be reasonably argued that the proliferation of gaming in the region may end at the Sheikhdom’s borders.

However, as we’ve seen in political and cultural history, momentum towards particular movements often flows freely through Arab states. Indeed, revolution, revolt, and reform can have a dominostyle impact on the region, and its therefore worth acknowledging that the UAE’s apparent step-change in approach could stimulate further gaming enterprise around the Persian Gulf.

Reviewing gambling exploits in other Muslim-majority countries also offers reason to be optimistic. Although not often documented in mainstream coverage, there have been numerous occasions whereby governments of Arab

nations have permitted wagering in their respective lands. In Egypt, fourteen casinos generate over $200m in gross gaming revenue each year, a number made more impressive by the fact that gambling is restricted to the leisure spaces of premium hotels. Lebanon’s sole casino facility in Maameltein, just north of capital Beirut, registers $175m in GGR. Even more astonishingly, a small proportion of shares in the Lebanese Casino du Liban, are held by the Kuwaiti government. Indeed, there is seemingly no restriction, moral or otherwise, on Middle-Eastern governmental bodies investing in overseas gaming markets.

Dubai World, a subsidiary organization tethered to Dubai’s local legislature, transferred $5.2b to bail-out MGM Mirage back in 2007. An offshoot of the Emirati group, known as Istithmar World, helped fund operator Kerzner Interna-

tional, who historically held a property in the Caribbean. Their only current resort in operation, is ironically in Morocco, another Muslim entity who has embraced the money-spinning labours of the gaming industry.

However, these examples aren’t exactly revelations. Historically, various regimes have permitted gaming institutions to set-up shop within state borders. Before the Islamic Revolution of 1978, Iran’s Shah Reza Pahlavi allowed casinos to function, with most falling under the stewardship of British-based firms. Local adversary Iraq also facilitated a gambling venue; however, this was subsequently closed, and indeed never re-opened, following the outbreak of the first Gulf War. Even Palestine provided a platform for casino enterprise. Sanctioned by former leader Yasser Arafat, local businessmen

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13 establishing an industry would be incredibly difficult dynamic to integrate.

Indeed, it seems entirely at odds with the cultural fabric of the area.

This sentiment is further heightened in the Gulf. The United Arab Emirates’ recent proclamations of social reform, and indeed the welcoming of some of the U.S’ most prolific operators, could be a sign of some modest movement within this territory. However, it’s entirely unlikely that this will pre-empt a ripple effect in some of the world’s most conservative countries.

Ras Al Khaimah may have mobilized, and Dubai are well-positioned to join, but a holistic reversal of the Middle East’s innate stance to gambling seems a mountain too difficult to summit. Dubai’s associated projects have been in-play for a considerable period, and the outputs of this lucrative industry are frequently, and compellingly, well-documented.

Indeed, it’s entirely plausible that, if a radical change in stance was to emerge, this would have occurred a substantial period of time ago.

War. Even Palestine provided a platform for casino enterprise. Sanctioned by former leader Yasser Arafat, local businessmen established a haven for Israeli punters, held back by restrictions in their homeland. However, doors closed after rioting and a sustained cross-border travel ban.

Although these venues were often outof-bounds to locals, they still illustrate the potential scope of markets, both inside and directly outside the MiddleEastern theatre.

Yet, perhaps more tellingly, swarms of Arab punters regularly travel to other sovereign nations to get their gambling fix. Importantly, this demonstrates that there is a genuine appetite for gaming in Muslim-dominated territories. Players who reside in, or directly descend

from, a host of Middle-Eastern nations regularly frequent countries like Cyprus, Georgia, and even the United Kingdom for wagering purposes. This notion is further consolidated when you account for dual citizenship circumvention. Indeed, many locals, seemingly unable to access gambling facilities in their native state, deploy secondary passports to hoodwink the system.

Crucially though, this is perhaps not enough to suggest that a fresh wave of gaming enterprise is about to wash over the Middle-East. And, even if this did materialise, it seems there wouldn’t necessarily be favourable reaction from its predominantly Muslim inhabitants. The examples cited provide enough ammunition to suggest some level of positive reception is likely, but the generational legacy throughout this region suggests

However, one must concede that the United Arab Emirates, in isolation, may end up being an exclusive facilitator of gaming activity in the region. If this does happen, which, in fairness, looks increasingly likely, this would still symbolize a seismic shift inwhat has been a largely steadfast conservative nation to press.

This may not be the gaming industry’s very own Arab spring, but it couldwell be an immensely lucrative step into a hitherto untapped commercial landscape.

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GAMING NEWS

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UKGC Fines 888 £9.4 million For Failures

Nevada Monthly Figures Keep Hitting $1 Billion

Online gambling firm 888 will pay a £9.4m

After an incredibly challenging 2020, and an uncomfortable start to the previous calendar year, Nevada’s gaming market feels like its now firmly on the path to full recovery. In accordance to recent results announced by local regulator, the Nevada Gaming Board Control (NGCB), state casinos registered nearly $1.1bn in gaming revenue for the first month of 2022. Staggeringly, this is the eleventh, consecutive month in which Nevadan operators have generated over $1bn within this metric.

fine after a Gambling Commission investigation revealed social responsibility and money laundering failings.

888 UK Limited, which operates 78 websites including 888.com, has also received an official warning and will undergo extensive independent auditing.

This is the second time 888 UK Limited has faced enforcement action – in 2017 they paid a £7.8m penalty package for failing vulnerable customers.

Andrew Rhodes, Gambling Commission Chief Executive, said: “The circumstances of the last enforcement action may be different but both cases involve failing consumers – and this is something that is not acceptable.

“The fine is one of our largest to date, and all should be clear that if there is a repeat of the failures at 888 then we have to seriously consider the suitability of the operator to uphold the licensing objectives and keep gambling safe and crime-free.

“Consumers in Britain deserve to know that when they gamble, they are participating in a leisure activity where operators play their part in keeping them safe and are carrying out checks to ensure money is crime-free.”

January’s figures saw a 42% uplift on the previous year, which was blighted by a raft of coronavirus restrictions, as well as public reluctance to visit bricks-and-mortar establishments. Perhaps more importantly, recent trends suggest that the Strip is showing signs of returning to its former glory.

Reviewing the data, we see that the Strip even outpaced the state’s impressive overall performance, delivering a colossal 77% revenue increase on January 2021. Moreover, this was also a 6% improvement on the like-for-like period in 2019, well before the onset of the coronavirus pandemic.

However, Las Vegas footfall is yet to stabilize.

Despite visitor numbers inclining sharply over the last twelve months, there is still a 28% discrepancy between January 2022 figures and those recorded three years earlier. Although this further demonstrates the achievement of delivering a 6% upturn in revenue, it still casts a cautious light on consumer confidence. Furthermore, takings haven’t quite hit the levels set in early 2020, delivered in the final moments before the pandemic took hold.

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The UK National Lottery The Inevitable Conclusion, Or A Sting In The Tail

S

of integrity and credibility. Public announcements, lobbying, and commentary on rival bids have all been forbidden, as the UK’s body for gaming control suffocates any prospect of further drama.

ince 1994 operator Camelot has presided over the UK’s native lottery enterprise. Fastforward to present day, and it stands on the precipice of winning its fourth successive term as principal provider of the country’s lottery services. In its relatively fledgling history, no other firm has been given the operational responsibility to run the government’s most lucrative public contract.

Some commentators would suggest that this latest chapter of bidding is yet another open-and-shut case. Indeed, Camelot certainly seem in pole position, if you pardon the pun, to keep the keys to the castle. However, this not quite yet cut and dried.

projected to be worth circa £80bn in ticket sales alone. No wonder the tension is tangible. Camelot’s platform of ownership doesn’t appear to crumbling under the pressure, but watching three gaming heavyweights throw their full force behind their respective campaigns must be daunting prospect.

The latest tendering instalment has unravelled in a rather odd, contradictory landscape. Fierce but discreet, aggressive but distant; this year’s race has been fought in an atmosphere of ambiguity and suspicion. A number of parties jockey for position in an intensively competitive field, aiming to secure a decade-long licence

The Gambling Commission has been eager to keep the bidding process tightly under wraps. It’s not difficult to see why. Successive tender procedures have been wrought with controversy and intrigue. And, although the regulator only inherited governance of the process in 2013, the Commission will inevitably keen to preserve an image

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However, we at least know the bidders, and a sense of the scale of the investment ploughed into their individual campaign trails. Czech billionaire Karel Komarek, looks to wield his considerable influence, as his firm, Allwyn Entertainment, targets licensing rights. Media entrepreneur Richard Desmond is also on the hunt, with his Health Lottery subsidiary, Northern & Shell, fronting up a bid. Last but not least, Italian gaming giant Sisal, which is set to be acquired by Dublin-based Flutter Entertainment, has also put its hat in the ring. Their bid is endorsed by current West Ham Football Club vice-chairman, Baroness Karen Brady.

Although exact figures remain unclear, it seems that each endeavour has been the subject of unprecedented funding.

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subject of unprecedented funding.

Recently, reports have emerged that the Gambling Commission has already picked its ‘preferred bidder’ said to be incumbents Camelot. As part of its regulatory role, the organization is empowered to present, to the Department for Digital, Culture, Media, and Sport, who they feel is the best-placed candidate to assume control. In order to mitigate against the threat of hostile competitor reaction, as has unfortunately been the case in previous years’ bidding rounds, the Gambling Commission has orchestrated an ‘objective’ score card in which to grade participants.

In 2007, Indian lottery operator Sugal and Dumani intimated they were prepared to take legal action over the award of Camelot’s third consecutive term. Although this eventually didn’t materialise, it wasn’t the first time a lottery tendering process had heard rumblings of discontent. In 2000, as

Sir Richard Branston built his Virgin empire, the mogul looked set to add the national lottery to his considerable business portfolio. However, this bid was kiboshed after a ministerial review, and summarily again awarded to the current contract-holders.

The hope is, by grading this year’s contenders on transparent scoring criteria, the threat of any legal action will be suitably mitigated. However, rumours of potential High Court activity emerged long before news of an established regulatory favourite. Indeed, this only served to further fuel the fire.

Although the claim that a preferred bidder has already been selected is proactively refuted by the Commission, it adds another de-stabilizing impact to a race already infused with considerable volatility. The sums up for grabs were always going to pre-empt conditions for unpredictability and hostility, and this latest development has certainly not helped the cause for cordiality.

Furthermore, the inclusion of a ‘solution risk factor’ measure within the assessment strategy has led to increased agitation amongst the chasing pack.

It’s likely that any judicial review will be based on this metric, with the three challengers likely to suggest that this measure heavily favours the existing tender. As this scoring accounts for 15% of the whole decision-making process, it’s argued that this could be the determining contributor to a another victory for the Watford-based firm. This sentiment is shared by a number of government ministers, with Tory MPs within the Culture Committee particularly vocal about the potential harm this aspect has to the integrity of the competition. Indeed, in a recent interview with the FT, Julian Knight, chair of the aforementioned group, asserted his view on proceedings,

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The UK National Lottery

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we possibly can- one that is open and fair and results in the best outcome for players and good causes’’ Furthermore, in reaction to a Telegraph report released on 9th February, which suggested that the regulator had already arrived at a conclusion on their favoured candidate, a spokesperson for the group said, ‘’The competition process has yet to conclude. The Gambling Commission Board of Commissioners make the final decision and will inform the Government when that decision is made.’’

‘’I would like the Gambling Commission to make clear precisely its methodology and how much weight it gives to incumbency. If you give so much weight to incumbency, you could end up giving Camelot a 10m start in a 100m race and that would raise the question of what the point is of the whole process?’’

Giles Watling, MP for the Clacton borough, has also expressed concern, emphasizing that certain rival bidder capabilities have been overlooked.

Watling stresses the group’s cumulative experience in running lottery programmes in other states, a factor that has seemingly been omitted from the Gambling Commissions evaluations.

However, Secretary of State Nadine Dorries, confirms that the regulator has made no formal declaration of ‘preferred bidder’ status to her department. Ultimately, Dorries will hold most political influence over Prime Minister Boris Johnson on the matter, the man empowered to cast the final vote.

Therefore, the road to resolution still feels ambiguous.

A fourth contract award on the bounce would of course reap high financial rewards for parent company Ontario Teachers’ Pension Plan (OTPP). The pension fund management firm stands

to accrue £0.05p for every £1 of business turnover, resulting in prospective aggregate profits of around £400m.

As events have been so secretive, it’s been difficult for analysts to objectively critique the merits of Camelot’s own efforts. Therefore, there is little available commentary on how the regulator will score the remaining 85% of the current lottery operator’s bid.

Regardless, given how the high stakes are, it seems events are hurtling towards the court room. Komarek’s Allwyn Entertainment, previously branded as SAKZA Entertainment AG, has already mobilized legal partners Freshfield and Bird & Bird. Industry bigboys Flutter Entertainment, committed to the takeover of bidder Sisal, are also anticipated to go down fighting.

They’ve already made an eleventh-hour plea to the Gambling Commission to revise any concrete conclusions made to date.

Yet, the regulator continues to stress the credibility of its approach. Speaking recently in the media, the organization’s ‘Fourth National Lottery Licence Competition’ (4NLC) executive director, John Tanner, stated,

Whatever the outcome, the legal wrangling between parties could be a messy, protracted outcome. Due to the coronavirus pandemic, the original announcement for tender, due to take place in Autumn last year, was postponed five months. We’ve now passed that timeframe, which could be both an indication of decision-making nervousness, and a metaphor for how a possible legal feud may pan out.

Industry experts do anticipate that the winner will be notified at some point in March, but this won’t close the book on what could grow to be a particularly poignant episode in the lottery’s 28year tenure.

Sisal, Northern Shell, and Allwyn Entertainment are not exactly consigned to defeat, but the evidence in circulation does suggest a triumph of retention for the Camelot Group. The market waits to see whether political lobbying, legal pursuit, or indeed a shock twist in the final stages wrestles the contract away from its stubborn custodians. One thing is for sure, whichever suitor emerges victorious will certainly be taking the jackpot home……

‘’Our job is to run the best competition

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The Art of Product Placement

By Lynn Pearce

T

he Product Placement business is booming in 2022, despite the fact that most people subscribe to streaming services in order to avoid the ads, sometimes without the knowledge that they are being shown ads within the streaming services they are watching. Brands are getting very clever at marketing their products, to the extent that most people are unaware that they are being marketed to while they watch their favorite shows. In fact, the very first time I heard about Peloton was

watching Emily in Paris! As soon as I finished binge-watching Emily in all her fabulous outfits and seeing familiar places in and around Paris, I immediately went online to find out more about the Peloton brand. Peloton’s main products are Internet-connected stationary bicycles and treadmills that enable monthly subscribers to remotely participate in classes via streaming media. Talk about a match made in heaven - as a strategic brand marketer, in my opinion, this was the epitome of great product placement!

And then I wondered …. how many other movies, TV shows, music videos had I watched and been shown products to, that had been placed so well into the show - that I did not even notice as being “adverts” at the time. This form of embedded marketingactually works far better than other traditional forms of advertising, because people tend to watch their favorite movies or

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TV shows and especially music videos over and over again! The shows get some of their costs recovered, and the brand gets marketed throughout the lifetime of the movie/show.

I started to research the best product placements in movies - and found what may have been the first product placement in a film, which was done by a UK company, Lever Brothers, for Sunlight Soap in 1896!

Remember when Marty got his selflacing futuristic Nikes in the second instalment of “Back to the Future”? It seems that movie was loaded with product placement, from Pepsi, Toyota, AT&T, Nike, through to The Weather Channel and more. I also remember watching Top Gun and could not wait to rush out and buy myself a pair of Ray Bans!

21 was shown towards the end of the video. Another example of great product placement.

One of the most difficult demographics to market to are the Gen Zers, who are known to install ad blockers, with research indicating that over 80% of this demographic skips past an advert and seldom watch TV. Their favorite pastime is video games. So how to reach them? You place adverts inside the video games, making it feel very much part of the game! Take the video game Mario Kart 8. Here is another example of Mercedes Benz doing great product placement, where the players choose their cars, from the W25 Silver Arrow, legendary racing vehicle, to the 1957 300 SL Roadster dream sports car to the latest models - brilliant!

But product placement can also backfire rather badly, when there are too many times that the product gets shown, or when the movie franchise places too many products, as in the case of Transformer 4, where there were over 55 brand products shown although the audience liked the movie, the reviews showed the general feeling was that they felt bombarded. I recall seeing “Skyfall” and always consider Bond as being associated with martinis (shaken, not stirred) - and felt a bit let down with the Heineken adverts because that was not a typical Bond drink - I immediately saw the “ad” - so in my opinion it did not blend in, turning it into pure advertising. However, Heineken has done fabulously well with the TV sitcom “Mad Men” and really took product placement to the limit when they sourced bottles of their brand from 1962 during a dinner party that Betty Draper had thrown for her husband’s colleagues. That is truly authentic and shows the value of the brand.

Who could ever forget Carrie Bradshaw in Sex and the City, whose utter obsession with Manolo Blahnik’s designer shoes contributed massively to the brand becoming a household name on a global scale!

Which brings me to Netflix’s “Queer Eye” with the Fab Five driving GMC vehicles. GMC were looking for a way to humanize the brand to make a better connection with consumers - and the wonderful storyline on Queer Eye assured them of success with their product placement.

One of the best music video product placements just has to be the Beats

by Dr. Dre’s headphones, which was shown throughout the video, and yet still managed to look natural in the football World Cup-themed video.

The fine art of product placement, when done correctly and unobtrusively within movies, TV shows, music videos and video games, allows you to focus on what is happening on the screen you are watching, essentially you do not even realise that you are being advertised to, as you are too engrossed in what you are seeing as a viewer.

To sum it all up, product placement within these environments works really well, our trust in the brands increases the more times we view it, without us even realizing it - and most importantly, it does not feel intrusive, it does not feel like it is being shoved into our face and personal space. The subtle brand recognition influences our purchasing behaviors positively, so it’s a win-win for all, which is why product placement is only getting bigger!

PTO

If you ever saw the Psy - Gangnam style music video, which reached over 4 billion views, you will certainly remember the bright red Mercedes Benz, which

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GAMING NEWS

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Kentucky Pushes Again For Sports Betting

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ports betting advocates in Kentucky are mobilizing for another pass at introducing a legalized market, coupling their latest proposal with a number of gambling controls.

There is tangible desire for many to politicians to see sports betting activity established, with Republican Adam Koenig leading the charge.

In general, gambling remains a controversial topic in what is a traditionally conservative state. Although previous bill proposals have fallen on their sword, the engagement of sports betting in multiple states across the country, no less amongst their immediate neighbours, may be the defining catalyst towards a different outcome.

Currently, Kentucky punters cross the border into either Indiana, Illinois, West Virginia, Virginia, or Tennessee to place

sports bets, an activity Koenig hopes to put a halt to altogether.

dictive slot units, are positioned as barometers of social responsibility intent.

The proposal’s endorsers believe that the creation of a sports wagering market would muster a colossal $22m in revenue per annum. This would also inject some additional funds into the state purse, with the bill asking for taxation across all online gambling formats, inclusive of gaming tables and fantasy sports enterprises.

Koenig, the chief protagonist behind the proposal(s), hopes to amalgamate these measures into one condensed bill. If this doesn’t prove to be successful, he’ll chase down as many of these lines of enquiry as possible, such is his conviction in the concept of establishing a solid, regulated sports betting marketplace.

Furthermore, a separate proposal levies a tax on pari-mutuel wagering and horse racing at a rate of 1.5%. There is also movement towards disbanding ‘grey’ slot machines, a new phenomenon that has exponentially grown throughout the state’s retail convenience stores. The movement towards taxation, as well as the removal of ad-

The state legislature is currently working through a number of bills, from various sectors, as it approaches the closing weeks of its session. Koenig and his supporters await the verdict on sports wagering.

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Las Vegas in focus Has the strip finally awakened from its slumber?

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here’s no point sugar-coating it; the impact of the coronavirus has ripped through the gaming industry with serious conviction. Of course, this unprecedented episode in the recent history of mankind has cast its shadow on pretty much every commercial industry.

However, for a sector that relies so heavily on experience, theatre, and communal energy, the pandemic has had a more chastising effect.

This has been of course been accentuated in Sin City. For so long, Las Vegas has been renowned for possessing a carnival of atmosphere, attracting individuals from the four corners of the globe. This lively and cosmopoli-

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tan setting provides perfect conditions for casinos to thrive. Tourists, gamblers and thrill seekers descend on the city to party, lose their inhibitions, and, perhaps most importantly to local stakeholders, part with their cash. Or, at least they did before COVID-19 tightened its grip. The stark contrast between Las Vegas pre-pandemic, in all its glitz and glory, versus the city in desolate and despondent lockdown, is perhaps most acutely illustrates the harrowing consequences of the coronavirus crises.

When COVID-19 hit American shores a little under two years ago, most could not have envisioned the level of disruption and despair to come. The U.S gambling industry was on the crest of

a wave, with the proliferation of sports wagering spreading quickly across the country. The Supreme Court ruling of 2018 triggered a tidal wave of activity, with numerous states embracing both bricks-and-mortar and online markets to provide sportsbooks for longawaiting punters. Within two years, the landscape looked very different.

Economic hardship, retail closures, and the cancellation of sports events all conspired to undermine the dramatic boom in sports betting. However, nobody felt the pinch quite like Las Vegas’ bustling strip of hotels and casinos.

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With tourism halted, travel bans in place, and events put on ice, the U.S’ premier gambling and hospitality centre was initially brought to a complete standstill. A short stint in lockdown was succeeded by a raft of restrictions, designed to curb the spread of a virus continually morphing, with each variant seemingly more dangerous than the last. Whilst some industries slowly began their ascent to recovery, the mood felt different within the casino sector, and especially on the strip.

With Las Vegas so dependent on the vigour of its visitors, the path to normality was always going to feel steeper.

How could a city, so heavily reliant on the climate generated by its guests, forge a route out of the rumble? In

truth, draconian curbs on everyday life rendered this question pretty much obsolete. As long as these restrictions were in-play, Las Vegas would struggle to find a plausible solution to the COVID quandary. Interaction quality is substantially weakened when conducted through a plexiglass screen, player camaraderie is extremely difficult to produce from a two-metre social distance, and masks are hardly the most welcoming apparel for resort staff.

In Vegas, a compromise to atmosphere inevitably washes through to a reduction in revenue. However, table capacity limitations, temporary closures and less cash in punter’s pockets were some of the more tangible manifestations, serving to hit takings sheets hard and

undermine stock market confidence.

One of the central drivers of the strip’s challenging performance has been the mass cancellation of events and conventions. In many ways, these are the lifeblood of the industry, pumping thousands of well-heeled businessmen, entrepreneurs, and tourists into casino territory. In January 2021, booking numbers dwindled to 32% occupancy.

Even in October, the strongest month throughout last year, room fulfilment barely eclipsed 80%. The post-Christmas stretch usually heralds the beginning of a lucrative season for sector stakeholders.

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Las Vegas continued

The Consumer Electronics Show, a frequent fixture each January, is a particular jewel in the crown. This event attracts a host of blue-chip businesses, and their wealthy senior leadership teams. For the last two years, this has represented a significant missed opportunity for the city. In 2021, the marquee convention was co-ordinated completely remotely, and, even in 2022, as restrictions tentatively started to ease, most major conglomerates decided against attending. Indeed, this year’s records registered uptake at approximately 30% of normal levels.

This congregation of technological expertise is then succeeded by the Superbowl, traditionally landing in the early days of February. Although Nevada’s relationship with sports wagering pre-dates that of other states across the country, their cautiousness towards online markets has cost them dearly

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in recent times. Currently, this form of betting requires initially registering in-person, at one of Las Vegas’ licensed venues. Therefore, when Superbowl LV rolled around last term, the city’s operators were woefully ill-equipped to cash in. U.S citizens, on the whole, have now a far more receptive stance towards sportsbooks, indicated by meteoric performance in places such as New Jersey, New York, and Illinois. This bourgeoning opportunity would represent a painful miss at the best of times, but an inability to lean on e-platforms amidst casino shutdowns would have been a particularly bitter pill to swallow.

The following month presides over March Madness, where a chaotic schedule of collegiate basketball offers the prospect of heavy betting activity.

Again, Nevada’s resistance to engage wholesale in an easily accessible online marketplace would serve to undermine

the scale of the opportunity. Come the spring of 2021, these factors had conspired to deliver a devastating blow to some of the country’s most established gambling institutions.

However, ironically, could this year’s equivalent timeframe signal the rejuvenation of the world’s most famous strip? There are certainly green shoots.

Although, the Consumer Electrics Show proved somewhat of a damp squib, concerts, gatherings, and events have steadily begun to re-surface. This development is reflected in the city’s hotel booking run rate, with a 20% month-on-month uplift occurring between January and February of this year. Indeed, the opening two months delivered the highest occupancies since the onset of COVID-19.

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Las Vegas continued

37

future, consistent with that we have seen in other states. Furthermore, our weekend has remained very strong.’

opening two months delivered the highest occupancies since the onset of COVID-19.

Furthermore, just prior to this years’ Superbowl LVI, the state’s house committee moved to disband the legal requirement to wear masks in public spaces.

Suddenly, the reliance on having an online betting channel dissipated, and punters came out in force to wager on American Football’s showpiece event.

The bandwidth between 2022 and 2021 was accordingly staggering. This year, despite a final bereft of star names and soap-style drama, Nevada’s sportsbooks accepted $179.8m in Superbowl betsa $43m uplift on the previous year. Of course, prevailing societal sports betting attitudes hadn’t quite as yet been cultivated to the same extent, but the huge increase in fortunes still serves to highlight the colossal impact of the virus.

The shelving of the mask mandate also drew spectators into the city, eager to spectate the game from a Vegas vantage point. Sampling the delights of Sin City, whilst embracing one of the most recognized sporting fixtures in the global calendar, would have been an impossible feat in 2021. Superbowl’s 2022 Inglewood residence, a mere 300 miles from the strip, may have gone some way in encouraging fans to drift westwards. However, it’s far more likely

that the returning bright lights, the convivial environment, and the liberalization of long-standing limitations were the central contributors towards surging attendance.

The theory that a return to form is starting to crystallize is further enhanced by the words of several of the strip’s hotel CEO’s, whose stewardship is integral to the success of some of the globe’s most glamouroushospitality properties.

Improvement in hotel performanceis a sure-fire indication of shifting dynamics, suggesting that the headwinds on the tourist trade are beginning to subside.

On their respective Q4 earnings update calls, the head of both Caesar’s and MGM, endorsed the notion that the sector was set to bounce back imminently.

Tom Reeg, CEO of Las Vegas-based Caesars, highlighted the significant decline in booking cancellations, identifying this as a clear signpost of increasing consumer confidence. Bill Hornbuckle, CEO of MGM, whose headquarters are located in the adjacent district of Paradise, has also endorsed the notion of recovery. Hornbuckle stated, ‘Cancellations are declining, and group lead volumes are normalizing. Forward hotel book has been stable over the past few weeks and we are once again starting to outpace 2019 levels. I expect that given positive COVID trends in Nevada, we will start to see meaningful loosening of COVID restrictions in the very, very near

True, coronavirus infection levels continue to tail off in the Silver State, and revisions to more COVID curbs are ongoing. This positive news, coupled with evidence in raw financial data, has resulted in a wave of optimism permeating through the industry again. In truth, revenue momentum had built long before the removal of compulsory mask-wearing. Throughout the closing months of 2021, casinos reportedly delivered an eye-watering $1 billion-plus per month, as the roadmap out of CIVD began to materialize. With vaccination programmes boosting both immunity and assurance, and no other foreseeable road blocks on the horizon, this trend is surely destined to continue.

However, it may take some time before Las Vegas regains its traditional seat at the head of the American gambling table. As the Nevada toiled under the shackles of its predominantly bricksand-mortar market, other states exploited America’s new zest for online sports wagering. Therefore, although boardroom discussions may project some rosier numbers, the strip’s commanding reputation is slipped slightly down the credibility pecking order.

Nevertheless, the omens look good.

Analysts resoundingly assert that industry confidence should be extremely high. Revenue numbers, hotel booking performance, and the restoration of prepandemic footfall are all clear indicators of commercial restoration.

ther improvements.

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GAMING NEWS

39

UK Lottery Allwyn Offers More To Charity

Georgia Bans Under 25s From Gambling

According to a report in the Sunday Times

Georgia will from next week ban all residents from the age of 25 and under from playing on gambling websites, under new rules announced

by Prime Minister Irakli Garibashvili.

newspaper it is almost certain that the current UK Lottery operator Camelot will retain the operating license for a fourth time. The report in the Sunday Times states that although the nearest rival for the bidding that of Allwyn who is owned and operated by Czech billionaire Karel Komarek offering higher amounts to charity Camelot has been given the status of “preferred bidder” by the UK Gambling Commission (UKGC).

Indeed although the process of allocating the next lottery operator has been shrouded in secrecy Allwyn has been reported to have offered to reduce the stake of lottery tickets from the current £2 to £1 and offered to increase the amount given to good causes by 135% it is expected that current operator Camelot will be awarded the license next month when the UKGC announces the winner.

Following on from the regulations voted by and approved in parliament in November 2021 online websites and bricks and mortar casinos must ensure anyone using their websites or locations must be over 25 years of age, these rules take effect on the 1st March.

According to government figures some $476 million (1.5 billion GEL) was gambled last year just in online gambling and mostly by young gamblers.

It is estimated the new rules with effect some 1 million residents in Georgia, the Prime Minster said, “many people were involved in these vicious games”, adding even a reduction of the figure by a billion would “already be a great relief”.

It is thought that although the UKGC on its markings of the bidders gave Allwyn the highest marks for the offering when it came to “risk factor” of the next operator Camelot came out on top.

Many observers believe that whatever the outcome next month the bidding process will be challenged in the high courts because of the system used by the UK regulator.

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Slot Management 101: How 2 define your slots of problems!

You run around all day putting out fires while your customers become increasingly disappointed with the anemic guest experience that you created. Your boss demands results but time is against you. So, what do you do, run for the hills?

By Andy Cosgrove

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ome people like to be busy but being busy doesn’t mean you’re being productive. I personally don’t know anybody, or any business, that doesn’t have problems but what separates the best operators from the amateurs is how they manage those problems. You may think that putting out fires is heroic but it’s not necessarily an efficient use of your time. Fixing slot machines might seem the right thing to do, but not if fixing one results in six others breaking down. Giving your staff a pay rise as a motivational exercise may seem like a good investment but not if you treat your employees so badly that they continue to leave because

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no amount of money compensates for having a bad boss. The point is that fixing a problem with a short term solution without first understanding what needs to be improved won’t provide you with the necessary stability to sustain your business in the long term. So if you want to be part of a successful team working for a highly efficient company now might be a good time to think long term, think sustainability, think consistency, think finding and understanding where sustainable improvements can be made to fix your operational challenges, think Lean Six Sigma, think the ‘define’ phase of the DMAIC methodology. Think big, think seeing the forest and not just a few

trees.

So, what is the define phase of the Lean Six Sigma methodology?–Before I go into the definition of the define phase, it’s important to revisit the meaning of all five letters in the Lean Six Sigma methodology because defining a problem / opportunity for improvement without first being armed with the tools and right approach to eliminate waste and improve your processes in the long term, will only take you back to putting out fires, and when you play with fire you increase the risk of being burned.

41 pening in order to make the process run more efficiently.

• Voice of the customer – There exists many short sighted casino managers who are self-proclaimed experts at knowing what customers really want but judging by what I’ve seen on offer (such as overpriced drinks, lack of real promotions, service without a smile) it would serve managers well to revisit this notion throughout the project lifecycle to ensure that they view the business from a customers perspective and make sure they provide the products, features, and services that the customers want, expect and need. It’s also important to act with integrity and create an atmosphere of trust and set the stage to deliver on our customers expectations in a timely manner (don’t keep them waiting an hour for a free glass of water!). Operators must deliver real value on a consistent basis because value is a fundamental aspect of delivering a successful Six Sigma project.

Nothing will scare away your customers faster than ignoring their voice ,over promising on their experience and failing to deliver real value.

• Define – where is the business improvement opportunity • Measure – how the process is currently being executed • Analyze – where you define the root cause of your poor product or service • Improve – you eliminate waste and variation from the process • Control – is about sustaining the results of your process improvements Welcome to the Define Phase – It’s a well known fact that 50% of the success of any project depends on how well the required effort to make a sustainable improvement is defined. I’ve witnessed many a promising project fail due to lack of vision, clarity, planning and the absence of the Lean Six Sigma

methodology. In my previous article we covered a basic understanding of Lean Six Sigma. In this article we’ll concentrate on all aspects of the define phase including the fundamentals which include the following: • The process and the process map – A process is a repetitive and systematic series of steps or activities where inputs are modified to achieve a value-added output. There are many processes in the casino industry such as how you pay a jackpot, how you access slot keys or how you count the chips on a roulette table. A process map is a technique that helps visualize process tasks, identify the complexity of a process and communicate the focus of problem solving.

When studying a process, it’s important to know the difference between how the process is supposed to run, how it actually runs and what should be hap-

• Cost of Poor quality(COPQ) – this represents the financial opportunity of your improvement efforts. It is a symptom measured in profit or loss that results from errors and other process inefficiencies. COPQ helps quantify the benefits of your proposed improvement project and the four elements that make up COPQ are: External Costs, Internal Costs, Prevention Costs and Appraisal Costs.

• Process Metrics – In order to improve a process, the objective is to make the process better, faster and cheaper. All Six Sigma projects metrics fall into one of these three categories

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Selecting projects, refining,defining, and financial evaluation are also essential parts of the define phase and will help you ensure your projects delivers the expected results with over 99% certainty.

When selecting projects, the structured approach is the preferred method of evaluation, and the minimum deliverables are as follows: • Business Case – provides a high level view of the area of concern,the business motivation for considering a project, and what is the area of focus for the improvement effort?

• Project Charter – expands on the business case and clarifies the focus and baselines performance metrics against which the success of the project will be measured. Some of the core components are the problem statement are the scope, the primary metric, the secondary metric and charts. This document is important as it characterizes a primary understanding of the problem at hand.

• Benefits Analysis–This financial evaluation establishes the value of the project. The components of the benefits analysis include the impact (Sustainable or one-off ); allocations (cost codes / accounting systems); forecasts (cashflow and realization schedule) Eliminating waste – One of the main goals of Lean Six Sigma is to identify and eliminate waste and part of this process happens in the define phase.

Lean enterprise is based on the idea that where work is being done waste is being generated. Using Lean enterprise correctly means less waste, greater efficiency andimprovedcustomer service. One of the main advantages of combining Lean enterprise with the Six Sigma methodology is that by combining greater effectiveness with greater efficiency, you create the kind of experience that will transform your customers

into loyal raving fans, so what are you waiting for?

The final part of the define phase involves the ‘5S’ principal, which is designed to organize the workplace, keep it that way and instill the necessary discipline required to enable each personinvolved to achieve and maintain a world class work environment.The 5S principal is broken down as follows: • Seiri – Sort and identify necessary items while eliminating unnecessary ones • Seiton – Arrange items in a way they can easily be reached when required • Seiso – visually sweep all areas, eliminate dirt, dust and scrap. Make your workspace shine • Seketsu – Standardizing involves creating operational standards and maintaining them • Shitsuke – Self discipline enables you to form a habit of following the first four S’s

of the process that’s creating waste for your business. It could be your slots promotions, your player’s club sign up process, your customer service training or even your egotistical marketing manager but, whatever it is, correctly defining the area for improvement using Lean Six Sigma will move you away from taking a gamble based on a gut instinct toward making a better informed and scientifically based decision that could, with over ninety nine percent certainty, turn your gamble into performance beyond your expectations.

Andrew Cosgrove is a seasoned slot operations veteran and certified project manager with over 24 years of hands on experience in Latin America and the Caribbean. Andrew has worked on both the operator and supplier side of casino slots and is available to help you succeed and exceed customer expectations via contracted consultancy services. Andrew can be reached at andy.cosgrove@henimgwaycasinoconsulting.com or seehttps://hemingwaycasinoconsulting.com/

Conclusion: By the end of the define phase you should have a description

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GAMING NEWS

45

Flutter Considers Potential Floating Of FanDuel

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eter Jackson, CEO of Flutter Entertainment, one of the planet’s most recognizable operators, has intimated towards the possibility of listing of US-based sports subsidiary, FanDuel, on Wall Street. The announcement comes after concerning profit losses in 2021 of €345m ($382m), attributed to costs surrounding May 2020’s merger with Stars Group.

Although Jackson has stated ‘it’s not something that we need to do, it’s something that we continue to evaluate’ the news comes amidst a mixed bag of results in the last calendar year. Given Flutter’s swift expansion in recent years, it now pursues markets across the four corners of the globe. A range of enterprises are in operation across the America’s, Europe, Australia, and Asia, subjected to the significant

pressure produced by a seemingly unrelenting global pandemic.

Given the variance in societal progress, the virus has impacted some gambling sectors more than others. In the U.S, where sports wagering is proliferating at an exponential rate, Flutter’s revenue impressively doubled to $1.8bn (£1.4bn). Furthermore, it’s Australianbased venture, Sportsbet, has presided over annual growth, delivering a staggering 43% uplift on the full-year 2020 figure.

However, substantial cost line losses and a protracted arbitration process have left analysts speculating about the scale of requirement for the proposed FanDuel action. In its international division, operating profits sunk to £240m ($319m), a colossal 54% downturn on the previous year.

Marketing efforts were doubled in the U.S as it looked to tighten its hegemony over the sports betting market, however this incurred a huge loss of £289m, a 40% worsening against 2020.

Jackson maintains that the Dublinbased group are well positioned for 2022, and perhaps would point to overall yearly revenue growth of just shy of €7.2bn ($8bn) as a positive sign of future potential. However, in the interim, the haemorrhaging will need to stop.

It seems Flutter will remain coy over the chances of FanDuel floatation, with Jackson suggesting that the gaming giant will await to see how this year’s market evolves.

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GAMING NEWS

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New York State Eyes Up Potential Online Casino

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awmakers in New York are currently reviewing a bill which looks to establish an online casino market in the Empire State. If suitably approved, Senate Bill 8412 will legalize online gaming platforms across the province. This represents another a major opportunity for localoperators, who received a considerable shot in the arm at the turn of the year.

Since early January, the state has presided over an unprecedented commercial return from its fledgling online sports betting sector. In an incredible period of trading, New York punters have wagered an eye-watering $2bn through online sportsbooks, partially facilitated by bumper takings around Superbowl weekend. This has also generated colossal revenue for the state,

as a heavy, 51% taxation rate on online sports wagering directs substantial funds back towards local authorities.

generating around $475m per annum, sees the state take a substantial cut of earnings.

Senate Bill 8412 isn’t quite as generous, with tax set at a more reasonable 25% of gaming revenue. However, state coffers will be further boosted by the decision to harness a ‘one-off fee’ on approved operators and gaming platform sub-contractors. If the bill is successful, firms that initiate an online casino tool will be expected to pay $2m for the privilege. Furthermore, any company who provides platform software or technical support, and advertises its brand through its client’s application, will be slapped with a $10m charge. It’s reported that this will earn the state around $150m in ‘one-off fees’ This, coupled with a healthy gaming tax levy

Given performance of neighbouring states, analysts are optimistic about the potential market. New Jersey, which has been colloquially re-branded as ‘Vegas East’, and Pennsylvania, both surpassed $1bn in online gaming casino revenue last year.

If online gaming reaches anywhere close to the heady heights of New York’s sportsbook performance, then New Jersey’s newly adopted title may need to re-locate to a state slightly further north…….

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GAMING NEWS

49

Aristocrat To Build Their Own Playtech

Playtech Boss May Front Potential Bid

After the failed attempt by Australian based

Playtech’s long-running takeover saga has taken yet another dramatic twist, with current CEO Mor Weizer emerging as a potential frontrunner for the firm’s acquisition. It’s rumoured that Weizer is preparing to launch a consortium bid with TT Bond Partners, former Playtech chief Tom Hall, and an unknown Asian suitor.

gaming company Aristocrat to acquire Playtech for some $4 billion their chief executive has said the company will now build their own real money gaming (RMG) company from scratch.

Aristocrat were so close to acquiring Playtech for so long but in the end a group of Asian investors purchased increasing amounts of Playtech shares at a higher price to block the Aristocrat deal and ultimately failed.

That has left the Australian based company with a dilemma do they look for another suitable acquisition or decide to go it alone and build their own.

Well originally Trevor Croker the Aristocrat chief said that building their own RMG would take five or six times longer than acquiring a suitable company and almost certainly 1.5 times more expensive, that is why they decided to go for Playtech.

However with the failure has come a new strategy that of build it yourself, according to Mr Croker Aristocrat will look to invest $1.3 billion in doing so, that money that was part of the Playtech deal they raised will now be used to develop their own RMG company.

Already installed as its new CEO is Mitchell Bowen who will lead the development and possible strategic acquisitions if needed to boost the companies growth further.

This latest episode plays out in the embers of Aristocrat’s recent failed bid for the software giant. Earlier this month, the Aussie-based gaming slots manufacturer tabled an eye-watering £2.7bn deal, only to see it struck down at a shareholder vote.

Most of the business’ senior leadership team were in support of the takeover attempt, but the process was believed to be derailed by a small Asian cartel of rouge shareholders. This sparked speculation about the long-term intentions of this pocket of investors. Last month, the same group served to undermine Eddie Jordan’s interest in acquiring the company.

However, fresh hope has once again materialised. Playtech have been transparent in their receptive stance towards offers, and a Weizerfronted bid may just be the antidote to quell this recent turbulent period. TT Bond Partners are yet to formally set their stall out, but have recently re-affirmed their interest in software technology enterprises. The investment firm assert their ‘significant experience’ in these sorts of services, and point to their global portfolio within this space.

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GAMING NEWS

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US Gambling Hit $53 Billion In Revenues Last Year

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he American Gaming Association said that 2021 set a new record as the highest-grossing year ever for the U.S. commercial gaming industry, reaching $53 billion in revenues, according to Commercial Gaming Revenue Tracker. The total breaks 2019’s previous industry record of $43.65 billion by more than 21%.

gaming.”

The industry closed the year on a high note, setting an all-time quarterly revenue record in Q4 2021 of $14.31 billion, surpassing the previous high-water mark of $13.93 billion set in Q3 2021.

Traditional brick-and-mortar gaming led the industry’s recovery, with 2021 combined slot and table gaming revenue totaling $44.94 billion, a 6.6 percent increase over 2019’s previous record.

“These results are nothing short of remarkable,” said AGA President and CEO Bill Miller. “The success of 2021 reflects our commitment to health and safety and how Americans have welcomed gaming’s expansion across the country. Today’s industry is effectively meeting customers how and where they want to engage—whether at a casino or through mobile

Sports betting’s growth accelerated in 2021, generating $57.22 billion in handle and $4.29 billion in revenue— jumps of 165 percent and 177 percent over 2020 respectively. The sector’s all-time high was powered by strong demand in established markets like Nevada, New Jersey and Pennsylvania and further boosted by the launch of seven new commercial sports bet-

Of the 34 operational commercial gaming jurisdictions in 2021—including four new markets—23 set individual records for full-year commercial gaming revenue. On a national level, every commercial gaming vertical set new annual revenue records.

ting markets in Arizona, Connecticut, Louisiana, Maryland, South Dakota, Virginia and Wyoming.

Two new iGaming markets, Connecticut and Michigan, also opened in 2021, helping the sector to a record $3.71 billion in revenue. Combined sports betting and iGaming revenue for the year totaled $8.00 billion, up 158.0 percent from 2020 and accounting for a record 15.1 percent of annual industry gaming revenue.

“Despite our record-setting year, gaming’s total recovery is still reliant on the full return of travel and large events, which requires a safe health environment and open economy,” Miller continued. “I’m optimistic that we will see continued growth throughout 2022.”

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MGM Announce Impressive Full Year Results

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as Vegas-based gaming giant, MGM Resorts, posted positive full year numbers on Wednesday afternoon, leading share prices to receive a tangible post-close bump.

The firm emphasized that solid property performance in native Las Vegas, and in its venues further afield, had contributed to favourable full-year growth figures.

MGM’s stunning Q4 performance was the key protagonist behind their success. The final quarter of the year delivered a staggering swing in net adjusted earnings per share, with 2021’s number over a full dollar ahead of the 2020 like-for-like.

Net revenue saw an equally impressive annualized Q4 uplift, with a $3.1bn figure more than doubling the company’s efforts in 2020. MGM suggested the recent recovery of leisure and tourism industries had hugely

bolstered the end of year run rate.

However, one should not underplay the scale of this achievement.

Although 2020 was plagued with temporary venue closures and decreasing consumer confidence, last year also faced into pretty some challenging headwinds. Continued caps on property capacities, the industrial introduction of mandatory face-mask wearing, and consolidated changes in player behaviour, have all sought to undermine the fortunes of many a sector stakeholder.

Furthermore, although the gaming firm were boosted by their Q4 performance, when COVID curbs started to ease, they certainly weren’t overly reliant on the closing three months of the year. Net adjusted earnings in a full year context were also highly impressive, with a colossal $4.27 bandwidth between 2020 and 2021 numbers.

CEO Bill Hornbuckle hailed the results yesterday, suggesting they demonstrated a ‘sharpened focus on operational resiliency’. And, although he earmarked the delay of early-year group bookings due to an Omicron infection hangover as an issue, he remained philosophical about the return of this footfall later on in the year.

Surely the firm, along with the other major marketplace players, have now navigated the worst. All will be setting their sights on an accelerated performance drive in 2022, as the industry continues to heal from the most economically damaging event in recent memory.

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IGT Announces Sale Of Italian Payments Business

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nternational Game Technology (“IGT”) has announced that its wholly owned subsidiary IGT Lottery S.p.A. has signed a definitive agreement to sell its Italian proximity payment business to PostePay S.p.A. – Patrimonio Destinato IMEL for €700 million.

Under the agreement, IGT will be selling LIS Holding S.p.A. and indirectly LISPAY S.p.A. These two wholly owned subsidiaries conduct IGT’s proximity payment business, which has been the leader in the Italian proximity payments market, offering services through a fully owned advanced payment technology platform and a network of 54,000 points of sale.

Services offered range from payments services including bill payments and prepaid payment cards to commercial services providing telco and e-vouchers top up and technological

solutions including merchant and enterprise services.

“This transaction provides us with an opportunity to monetize IGT’s market leadership in the Italian proximity payment business at an attractive value as we continue to execute our long-term strategy,” said Vince Sadusky, IGT CEO. “Streamlining our products and solutions portfolio enables us to focus our efforts and resources on our core and strategic assets, as we position IGT for industry leadership and increased shareholder value.”

The sale price represents an enterprise value of €630 million and approximately €70 million of net unrestricted cash. The business being sold generated about €228 million in gross revenues and approximately €40 million in EBITDA in 2021, reflecting

a valuation multiple in line with the most recent Italian transactions in the proximity payments sector. IGT will use net proceeds from the transaction primarily to reduce debt.

The IGT Board of Directors has approved the transaction, which remains subject to customary closing conditions, including regulatory approvals. Closing of the transaction is expected to occur during the third quarter of 2022.

UBS AG is acting as lead financial advisor and fairness opinion provider to IGT, UniCredit S.p.A. is acting as financial advisor to IGT. Advant-Nctm is acting as legal advisor to IGT and KPMG is acting as financial due diligence and tax advisor to IGT.

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