January 2015 Infinity Gaming Magazine

Ladbrokes c’mon you Reds!

ICE Organiser Sold for £200M

Florida warning for casino resorts

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FEATURE

AIL CAESARS - Special article

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contents InfinityGaming

EDITOR’S LETTER

Ladbrokes – C’mon You Reds ............................06-09 Christina Thakor-Rankin latest excelletn article

Clarion Events sold for £200 million ...............10-11 ICE Expo organiser sold to invest firm

Ail Caesars..................................................................16-17 Andrew Tottenham looks at what went wrong for Caesars

Florida warning for casino resorts....................18-19

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C’MON YOU REDS

Could there be similarities with Atlantic City?

Washington sees ne online bill..........................22-23 Could the most opposed state to online gambling be next?

Customer Service Training Hell..........................26-29 Marty Baird latest excellent article

South Vietnam..........................................................30-31 The new gambling destination to rival Macau?

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AIL CAESARS

South Africa squashes online gambling........32-33 Hope gone for South Africans playing online

IGA8 All Sold Out.....................................................34-35 Biggest ever attendance recorded

AC Mayor predicts bad year...............................36-37 Another casino closure predicts Mayor

Willaim Hill.................................................................38-39 Latest annual results and Aussie news

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FLORIDA WARNING

Computer poker player.........................................42-43 InfinityGaming • ISSUE JANUARY 2015

Can it really beat a poker pro?

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How and where can you read the magazine?

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AC TOUGH TIMES

EDITOR’S LETTER Lana Thompson - Chief Editor

by

EDITORS NOTES

InfinityGaming

Welcome to the January edition of the Infinity Gaming Magazine.

CONTRIBUTING WRITERS Christina Thakor-Rankin Martin R. Baird Andrew Tottenham JJ Woods

wow here we are in 2015 how time has flown by indeed the magazine is now almost 5 years old since we launched in March 2010 and what fun we have had.

On behalf of all the team at Infinity Gaming Magazine we want to thank all our readers and advertisers for their truly wonderful support and as we near the actual month we will be doing some special articles to remember.

charity Sponsorship of the auction.

In the magazine we have the superb Tina Thakor-Rankin article looking at Ladbrokes and Andrew Tottenham reviewing how the giant casino operator Caesars has got into so much trouble. Not forgetting the master himself Marty Baird on customer focussed training.

Hope you enjoy the magazine and see you all on the 2nd February at the Savoy Hotel.

Enjoy!

But onwards we go and how amazing that the 8th International Gaming Awards on the 2nd February is already a sell out weeks before the actual evening. We would like to thank each and everyone of our sponsors for their wonderful support, it would not be possible without them. It is going to be a very special ceremony and we going to have some great fun there but also with a gold bar on auction to raise funds for Care International, we want to thank Mr Green for their

Lana x

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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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Business Partnerships Svetlana@gaming-awards.com

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FEATURE ARTICLE

Ladbrokes – C’mon You Reds

By Christina Thakor-Rankin Our feature writer Christina Thakor-Rankin takes a look at Ladbrokes and why in football terms they are now the United to William Hill’s City.

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f managing a football club in today’s world is like running a business, then running a business is like managing a football team – especially in gaming.

There are regulatory bodies, all play broadly to the same basic rules, and all are focused on their position in the league and attendance at the gate. The differentiation comes in the style of play, the players, and how they perform individually and as part of the team, and the fans.

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Historically, and certainly in the UK, Ladbrokes has been the longrunning ‘United’ to William Hill’s ‘City’. For much of the time it was an equal fight. Even in the very early days of the internet Ladbrokes was still holding its own and keeping pace with its nearest rival. The change in fortune seems to have started around ten years ago, around the same time as the last significant change in both the history of Ladbrokes, and the UK Gambling Act. Corporate, legislative or people

- singularly or collectively – whatever it was, something spooked Ladbrokes, causing it to take its eye off the ball - and the firm has been struggling to get back on terms since. Everything it has done, from the changes in manager and backroom staff and on-pitch experiments with brand, positioning and

product, to mirroring its better performing rivals in its strategic plays and international signings suggest a team which has lost its way and is looking to others for ideas.

A new manager in the form of Richard Glynn, promised much, coming as he did, from a successful internet

gambling background, but has failed to steer the team back to glory. The reason for this may simply be that whilst he was a successful manager at a smaller spread betting team, he did not have the depth or breadth of experience to take on a top flight team with a huge retail division, trying to make up for lost time and opportunity with not just its traditional rivals, but also the new .com boys on the block, and a mentality and style of play, and level of expectation, fundamentally different to that of spread betting.

On paper Ladbrokes remains a solid team – an established name within the industry (believe it or not Ladbrokes has been around since the 1800s), an established retail presence, an impressive international footprint, a Board willing to back the manager, and all the right players on the pitch from Open Bet sports and games to Playtech casino, poker and bingo, mobile and even an exchange – so what exactly is the problem?

A case in point might be the acquisition of Betdaq – which looking back had a distinct whiff of the Balotellis about it. Losing sportsbook customers to Betfair, Ladbrokes decided to fill the gap by acquiring its own exchange. This of itself, given the popularity of the exchange market was not necessarily a bad decision.

The problem was that having acquired it they then did practically next to nothing with it. Like a new

player, a new product needs to be integrated into the team, find its natural fit and be accepted by the fans. This did not happen. There has been no real development of the product to the point where it might be viewed by customers as a real alternative to Betfair, and for a product aimed at sports customers, its positioning on the website could not be further away from its target audience, sitting as it does at the far end of the navigation bar – the equivalent of the subs- bench.

There have also been ongoing attempts to build the team around its longest serving and most successful players – sports and shops. It was one of the first operators to employ ‘celebrities’ for marketing, advertising and as brand ambassadors – whilst their choice of individuals may have been debateable, the principle was sound and one which has been imitated by several others, including bet365. They were also one of the first to offer a retail focused loyalty reward scheme, ‘Odds on’.

The best managers understand their key players as individuals, and also how they need to fit and work together as a team. Whilst the sector as a whole seems to be moving towards a unified one brand, multi-product, multi-channel message pushing cross and up sell, Ladbrokes continues to serve up a fragmented, disjointed experience of sub-wallets and per individual product marketing messages, resulting at best in cannibalisation, at worst, the customer blocking the sender to reduce the marketing ‘spam’. Granted there have been recent efforts to improve but the experience is still far from where it needs to be.

Aware of the fact that the gaming side of the business was lagging behind its rivals, a new back-room team has been brought in. Playtech has now been tasked with managing the performance of the majority of the non-betting portfolio.

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Like most teams which look good on paper but fail to deliver on the pitch, there seems to have been a fundamental lack of understanding of how to get the best out of each individual player and how they can best work together as one team.

There have also been elements of expecting too much from the new signings, such as exchange, and conversely, too much reliance on building the team around the old guard who have formed the historic backbone of the team, sports and shops.

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Ladbrokes at heart is a business which is still very much about blokes and betting, and less about gaming and technology.

Success at the top is now, more than ever, about betting, gaming and technology. This trend is not about to change. If anything it will simply intensify, as the two worlds of remote and retail move closer together.

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t is too early to see the fruits of this partnership, but it is doubtful, in today’s climate, whether it will, or even can result in the same level of success as their earlier deal with Hills did, but again a step in the right direction.

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Just as it looked like they were getting back into the game, along came a spectacular own goal in the form of ‘Ladbrokes Life’ – an aspirational lifestyle message aimed at a sports betting male demographic, and the tagline ‘once is luck, twice is skill’.

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At a time when their rivals are pitching a keep it fun, casual and responsible message to a diverse audience across different products and channels, Ladbrokes has a campaign centred on a group of ‘loveable cheeky chappies’ (possibly Mockney) with a penchant for swaggering down side streets, and for whom betting is an integral part of life, albeit at the racecourse or in a shop - mobile it would seem is used only for checking stats, scores, and possibly a selfie.

A product specific advert is not a bad thing, provided that it resonates

with its audience, is reinforced elsewhere and does not give a skewed view of the brand. In this case, the ‘lads’ are clearly into their football, but there seems to be little evidence in the real world of Ladbrokes sharing their passion. Watching MOTD this weekend, both perimeter advertising and back boards were dominated by blue, green and black – perhaps I blinked and missed it, but the only red seemed to belong to an Asian focused sportsbook.

The advert shows a group more likely to manage their life via tech device, yet there is minimal encouragement to place bets using the channel which is most likely to be their preferred route.

This advert is also Ladbrokes only real tangible mainstream media marketing. Compare this to their nearest rivals who have several different adverts promoting different products to a much wider cross gender demographic with a strong emphasis on remote play. William Hill may well be the home of betting - but it also has Vegas and a big blue bingo bird.

All of this gives the perception that

Unfortunately, the last few years have seen Ladbrokes take on the guise of a recently promoted team, struggling to adapt their game to a league which is faster, slicker and more dynamic. If Ladbrokes is to stand any chance of getting back to the top, it needs to change the way it plays.

ABOUT THE AUTHOR Christina Thakor-Rankin is Principal Consultant at 1710Gaming working with start-ups, investors, operators regulators, and industry groups internationally, covering all aspects of the gaming and gambling cycle - from initial research, licence and operational go-live, to new markets and opportunities, to customer engagement and experience. She has over 20 years industry experience and has previously held roles at William Hill, Blue Square, Tote (Sport) and Virgin Games managing multiple business disciplines, functions and teams.

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GAMING NEWS

ICE organiser sold for £200 million

The deal was announced to Clarion staff on the 9th January, It is understood that Providence, who are a leading global investor specialising in media, communications, education and information industries, fought off a number of other competing parties to win the bidding war including, ITE Group, Penton Media, Charterhouse Capital Partners and finally Carlyle Group LP. Providence is understood to want to invest heavily in Clarion as the

organiser looks to start expanding aggressively again, with the company already said to be looking at international acquisitions both large and small.

million on their investment in just 6 years of owning the exhibitor that traces its roots back to 1947 according to the companies media files.

It is unlikely that exhibitors and attendees will see any difference from the sale this year, but sources say that senior management changes within Clarion will happen over the coming months.

Clarion was owned by private-equity firm Veronis Suhler Stevenson, which bought the company from HgCapital for 120.5 million pounds in 2008, which sees the firm make some £80

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ith just a few days to go before the ICE Gaming Expo it has been announced that Clarion the organisers of the show along with some 200 events they organise annually have been sold for £200 million to global asset management firm Providence Equity.

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FREE TO ENTER NOMINATIONS OPENING SOON

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2015

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GAMING-AWARDS.COM

US GAMING NEWS

Caesars subsidiary enters bankruptcy

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ollowing months of discussions with its creditors Caesars Entertainment has placed its subsidiary Caesars Entertainment Operating Company into voluntary bankruptcy which carries debts of $18.4 billion.

The company filed papers in Chicago this week in an attempt to stop three smaller creditors owed $41 million pushing the casino operator into involuntary bankruptcy, saying that the deal Caesars has drawn up is totally unfair to the smaller investors. However the casino giant said that all their casinos, hotels and properties at present will operate

as normal and stay open during the bankruptcy hearings.

Caesar employs some 36,000 people over there 38 casino properties around the World including the London Clubs casino chain in the UK. “I am very confident in the future prospects of our enterprise, which will combine an improved capital structure with a network of profitable properties,” Gary Loveman CEO of Caesars Entertainment said in a statement.

money each year for the last five years, cut its global workforce by 1% last year and closed properties in cities including London.

Rumours have been swirling around the industry that the UK casino division will be closed or sold off in a fire sale to recoup some of the lost investment that Caesars made in the UK. At present it looks like court hearings will drag on for many months between Caesars and its smaller creditors leaving the workforce worried for their futures.

The casino operator which has lost

AC: Revenues fall 4.5% in last year alone

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In 2014 the casinos in the state took $2.74 billion in total revenues, in 2006 revenues for Atlantic City stood at an all time high of $5.2 billion, that is a drop of 48% even in 1988 revenues for the casino industry were at $2.7 billion and those figures for 2014 could have been worse if it were not for the introduction of online gambling bringing in $122 million.

It is tough times for Atlantic City

with over 8,000 workers losing their jobs in the industry in 2014, four casinos closing and uncertainty over other casinos closing. In 2006 the casino industry there employed just over 42,000 people, in 2014 only 24,817 now work within the gaming sector in New Jersey.

With competition in other states

eating into Atlantic City’s profits it is difficult to know when the decline will stop and flatten out as last year saw a decline of 4.5% in revenues from that of 2013, many working there now hope that the falling revenues and closures will cease in 2015 and bring some relief to a struggling industry there.

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ith the release of the latest set of gambling figures from the New Jersey Division of Gaming Enforcement for the previous year, the numbers show that Atlantic City has now lost almost half its revenues over the last eight years.

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MACAU GAMING NEWS

De Niro, DiCaprio & Scorsese feature in Studio City advert

De Niro & DiCaprio in scene from advert

It is rumoured that the film has cost $70 million to get all the actors together along with Scorsese to make the trailers and short movie which will be shown in its entirety on the opening of Studio City.

Multiple teasers have been released this week showing a sneak peek of the film called The Audition, to be released mid-2015 at the launch of Studio City. It has been directed by Scorsese and written by Boardwalk Empire creator Terence Winter.

Brad Pitt is scheduled to appear in the final film, but the plot centers around the actors vying for the same part in a Scorsese film and flying to Macau to audition with the famed director.

“This short film is a historic event because it is the first film ever to star such legendary actors as Robert De Niro, Leonardo Dicaprio and Brad Pitt in one film together,”

Brett Ratner, who part-owns RatPac Entertainment and produced the film, said in the statement.

“Our hope is that the trailer for “The Audition” gives audiences an early look into what will surely be an important cinematic experience directed by one of the most culturally influential directors in the history of Hollywood films,” Ratner added.

“It will take the entertainmentinspired leisure destination concept to new levels, in a cinematic setting developed in partnership with the world’s leading entertainment brands, supported and endorsed by many of the legends of Hollywood,” Ho said in a statement.

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ith the opening of the Studio City in Macau by Melco Crown Entertainment in mid 2015 the advert for the new casino resort has been released, well a trailer for the advert has been. Not surprising it is a trailer for the whole advert as legendary actors Robert De Niro, Leonardo DiCaprio and Brad Pitt all feature under the direction of famed Director Martin Scorsese.

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Feature writer - Andrew Tottenham

Ail Caesars

Andrew Tottenham Feature writer Andrew Tottenham sees what has happened to Caesars Entertainment in light of the recent bankruptcy filing and how it go there I have been involved with the gambling industry since before the internet was born. My consulting career, which began in the 1980s, has taken me to many countries around the world , which has enabled me to learn about the vast cultural and regulatory differences surrounding the gaming industry – in all its forms, including casinos, slot machine halls, VLTs, lotteries and remote gambling - in all of these different places. Through this series of occasional articles for the Infinity Gaming Magazine I will be putting pen to paper (finger to keyboard) and writing about my experiences, knowledge and thoughts developed during more than thirty years in this industry.

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he big news recently is the filing by Caesars Entertainment Operating Company (CEOC), in the Chicago courts for Chapter 11 bankruptcy.

The filing is not for the whole of Caesars Entertainment Inc. but for one of its many subsidiaries. This subsidiary owns a large part of the Caesars’ empire, mainly the competitively challenged older properties and is weighed down by over $18 billion in debt. But how did the mighty Caesars get in to this mess?

Private equity deals usually leave companies highly leveraged (owing a large amount of money). The advantage is that if the company does well following the transaction the new owners can get a great return on their investment. For example, imagine a company that has EBITDA (earnings before interest, taxation, depreciation and amortisation) of $10 million and it has a

valuation of 10 times EBITDA = $100 million. A private equity firm buys the company, invests $20 million for the new equity and puts $80 million of debt on the balance sheet of the company; the company uses the proceeds to acquire all of the outstanding shares. Within the next couple of years let’s say EBITDA improves to $12 million and the owners manage to sell the company for the same valuation multiple, $120 million but note the buyer will only pay the difference between the valuation and the value of the debt on the balance sheet. . $120 million minus $80 million; the new buyer will pay $40 million to the old owners, leaving the $80 million of debt on the balance sheet. For the old owners $20 million invested turns into $40 million. The company’s valuation increased 20% but the owners’ return was 100%.

Feature writer - Andrew Tottenham

Ail Caesars Connecticut and upper New York State, major feeder markets for Atlantic City and also taking customers from nearby wealthy New England. Then casinos opened in Pennsylvania (the state next door,) Baltimore, racinos opened in the suburbs of New York City with devastating impact. In 2006, Atlantic City’s twelve casinos generated $5.2 billion of GGR, in 2014 it was $2.9 billion.

Not only was Caesars hit by falling revenues because of the crisis but also by the effects of increasing competition. Caesars Entertainment is the combination of Harrah’s and Caesars that merged in 2005. The old Caesars had properties in Las Vegas, Atlantic City, Canada and Uruguay and Harrah’s had properties in Las Vegas, Atlantic City and throughout Middle America. The combined group operated 37 properties but had a concentration in Atlantic City and Las Vegas. Atlantic City, more than any other US casino market, has been hit by the increase in competition from new casinos in the surrounding States. When Atlantic City first opened in 1978 the casinos there enjoyed a monopoly on the East Coast. In the 1990s Native American casinos opened in

Other companies got into similar trouble; when the global meltdown happened. MGM Resorts and Las Vegas Sands too were caught with large amounts of debt on their balance sheet. But they have not had to go the bankruptcy route, far from it. In 2007, LVS had gross revenues of $2.7 billion and for the twelve months ending September 2014 it was $14 billion. MGM’s over leveraging came about because of the escalating cost of the City Centre development in Las Vegas and Las Vegas Sands debts were due to its development of Marina Bay Sands in Singapore and more resorts in Macau. Short term debts were coming due just at the time when banks stopped lending money, share prices dropped to the floor and it was touch and go but they managed their way through it. MGM found an equity partner for City Centre and also developed a resort in Macau with Pansy Ho and Las Vegas Sands managed to refinance its debts but not before Sheldon Adelson, the company’s founder and Chairman, had to reinvest $1 billion of his own money – the best investment he ever made. LVS’s Singapore property opened as did the Macau properties and both companies have never looked back. Today LVS generates more revenue and EBITDA than Caesars ever did. And there lies the difference. MGM and LVS borrowed money to develop new revenue and profit streams, Caesars borrowed money solely to pay off its old shareholders. In the end it turned out to be the worst bet Caesars ever made.

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hese types of deals work very well when earnings improve either through increases in revenue or cost cutting or both. But when things go wrong it is the equity that gets hit first; in the deal just described a 20% reduction in value wipes out the entire equity. Things started to go wrong for Caesars from the start. Just as the deal closed in 2008 the world economy fell off a cliff and global economic crisis began. Demand slackened and revenues decreased. When this happens operators reduce the room rates to maintain occupancy and cut costs. The decrease in room rate has a knock on effect on other revenue streams – if you sell a computer for $1500 you can sell software to run on it for $300 but if you sell the computer for $500 you have to reduce the price of the software. Similarly, if you sell a room for $350 per night you can charge $30 for breakfast, and they did, but when you sell the room for less than $100 per night…. Need I say more?

Needless to say declining revenues had a dramatic impact on Caesars ability to make its interest payments. Last year, CEOC had debts of over $18 billion, EBITDA of approximately $1 billion to pay interest charges of almost $2 billion. Ouch! Despite the best efforts of Caesars to restructure its debt the scale of the problem was just too great; the writing was on the wall and the filing just a formality.

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GAMING NEWS

Florida warning on casino resorts

The Orlando Sentinel did a recent piece on the comparisons of Atlantic City closing four casinos last year and the loss of 8,000 and the danger of allowing casino operators opening mega casino resorts in Florida where already the US has 23 states that allow for casinos, the newspaper is saying that the country is saturated and Florida could end up the same way Atlantic City is.

One of the main arguments is the

loss of local businesses when a casino resort is built, it is estimate 40% of local restaurants and retail outlets will close just like in Atlantic City when resorts were built there 37 years ago.

An argument has brewed over the placement of the casino resorts, should they be placed in locations where a local business community is thriving hence damaging and protestors say will destroy those businesses, more should be done to locate casino resorts in areas that have little or no local amenities or businesses so creating more wealth not ruining what already exists say protestors.

There is some reasoning to the argument as both Las Vegas and the Mississippi Gulf Coast, had virtually

no commerce before the introduction of casinos and as such created more business not destroying what is already there.

Also recent studies by the Florida Legislature last year, showed that 95% of casino revenue would come from Florida residents, not tourists.

So, money gambled in a casino is money that won’t be spent in local restaurants and entertainment complexes or any other local businesses.

It will be a battle for Florida but should casino operators win and develop in Florida lessons should be learnt from what has happened in Atlantic City and regulate the amount of resorts and to locate them in areas that would benefit from the construction.

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s Florida again considers allowing for casino resorts to be built in the state a warning has been sent by a local newspaper on the dangers allowing for their construction with parallels given with the downfall of Atlantic City.

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GAMING NEWS

Nevada report 2014 revenues rise

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Revenues from gaming alone accounted for $10.6 billion, which is just 44.5% of total revenues. That is gaming’s lowest percentage of total revenue ever and 15% below what it was in 2007.

Thou gaming revenues still have not caught up with the 2007 high the good news is that, revenues from room rents, food and beverages set all-time records in 2014.

But the bad news is that over the full year of 2014 casinos reported a loss of $743.7 million with the reason for the loss attributed to two major expense areas: interest payments and “write downs” in the value of casino assets, including depreciation.

asino operators in Nevada had a better year in 2014 with total revenues up to $23.9 billion, which is up over $800 million from the previous year but still short of the states high in 2007 which saw revenues of $25.3 billion, the Gaming Control Board announced in its annual report last week.

New Jersey online operators to share players New Jersey both WSOP and 888Poker have combined forces to share players to add more liquidity to competitions and cash games online.

Ever since the state opened up to online poker numbers have been disappointing and this move offers players more competition within tournaments it is hoped. Online companies were expecting a boom in New Jersey with predicted revenues of $1 billion in the first year of operation, those estimates fell well short of the actual $100 million generated and so online poker companies will look further into sharing players following the move by 888Poker and WSOP. “Shared liquidity will help create a better player experience that we hope will attract a diversity of players and begin to bring poker to a broader audience once again,” said David Licht, CEO of the All American Poker Network, the joint venture between 888 Holdings and Avenue Capital. The sharing of players by both compa-

nies will start on Monday 12th January, however both sites will still maintain their VIP and reward programs separately.

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With the struggle to get more players on board in

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US GAMING NEWS

Washington sees new online poker bill Straub fights against his own ruling for Revel

The long running story of the failed Revel Hotel

and Casino continues as the judge in the court case concerning the winning bidder Brookfield Asset Management who pulled out of the bid of £110 million following their failure to agree terms with debts by the power company has now given runner up Glen Straub the winning bid of $95.4 million, however Straub is now appealing his own favourable ruling!

Indeed poker players there are treated as felons even thou the state allows for land based gambling, but all that could change with this new initiative that has been pushed by Curtis Woodward of the Washington Internet Poker Initiative.

Sherry Appleton was chosen said Woodward as she has a history going back to 2006 of supporting online poker in the state.

The bill currently only covers the legalisation of online poker, has none of the rules covering “bad actor” clauses covered by states like Nevada & leaves the framing of regulations & the amount of taxation & licensing fees to the state Gambling Commission.

How successful the bill will be and how far it goes is unclear, but it is a step in the right direction for a state so opposed to online gambling.

Straub wants a reduction on the $95.4 million he originally bid to $87 million as he says the bidding process was unfair and flawed.

However the judge ruled that Straub’s most recent bid is still binding, and that is the price he will have to pay. That led Straub’s attorney, Stuart Moskovitz, to say he will seek a court order halting the sale to his client. He asked Burns to issue a stay to her own order, but she refused.

During a break in the hearing, Moskovitz said Straub “is not making any decisions right now.”

It leaves the Revel once again in limbo as Straub also refused to answer recent reporter’s questions on the usage of the property for a casino or as he stated before as an academy for the very brightest individuals.

The most worryingly comment Straub has said is that he would not be too bothered if the deal fell through, whether this is a ploy on his part or genuine is unclear and leave the Revel back at square one in resolving its long term future.

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ashington has seen the introduction of an online poker bill supported by Rep. Sherry Appleton, the move to introduce HB1114 is surprising given the fact that Washington state is the most unfriendly and anti-online gambling state in the US.

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GAMING NEWS

AGA bring in new board members

Geoff Freeman President & CEO of the AGA

It is hoped that the AGA by doing this will repair the damage that has been done over the last year with the fight over online gambling within the organization with some of its leading members split in supporting online gambling in the US and those adamantly opposed.

“The gaming industry is strongest when it works together,” said Jim Murren, chairman and CEO of MGM Resorts International and chairman of the AGA. “The AGA will be best positioned to advance our collective interests through inclusivity,

transparency and a focus on issues of common cause. I am confident that the AGA and our industry are moving in the right direction.”

“Our goal is to elevate the AGA’s ability to advocate for the entire gaming industry – in Washington, in the media and in communities across America,” said Freeman President & CEO of the AGA. “In 2014, we established key building blocks in this effort, including strengthening our staff, increasing our advocacy on the value of the casino gaming industry and modernizing our membership structure. Today’s announcement of nine additional members – with more on the way – shows that our new direction is resonating with the industry.”

The AGA’s new structure includes a “seat at the table” for licensed and regulated casino gaming operators

– commercial and tribal – and suppliers that comply with the AGA’s Member Code of Conduct and meet requisite dues requirements. In addition, industry allies, such as financial service providers, non-gaming suppliers and destination mark ill as new members eting organizations, have an opportunity to actively participate in the new AGA. The six new board members are: CG Technology, Greenwood Racing, Inc., Konami Gaming, Inc., Las Vegas Convention and Visitors Authority (LVCVA), Seminole Hard Rock Gaming and William Hill. New general members of the Association include: Ainsworth Game Technology; Electronic Transaction Systems (ETS); and FinScan.

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he American Gaming Association (AGA) has announced a new membership that will bring in six new board members along with three general members to improve an help with inclusivity and transparency.

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ARTICLE

Are You in Casino Customer Service Training Hell?

By Martin R. Baird Our feature writer Martin Baird in his January article discusses the art of customer service and what could happen if it all turns wrong into Customer Service Hell.

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I’ll tell you how frustrating – VERY! The same goes for a guest who’s trying to get the attention of an employee and that staff member simply wanders off and is never seen again.

It’s wonderful to have your expertise validated by another expert, even if it is a coincidence. The column was written by Jay Steinfeld, founder and chief executive officer of Blinds.com, an online source of window coverings. His company has captured more than half the online window treatment market, so Steinfeld has a successful business.

He knows what he’s talking about.

The disappearing employee goes to the heart of two problems – not caring and not paying attention. Casino employees simply must understand that guests are the most important people at the property and show that they care about them by helping guests any way they can. That includes doing what you say you will do for guests instead of wandering away and forgetting about it. Employees must be observant at all times so they can see when a guest needs help or even anticipate what a guest will need. Be caring. Be diligent.

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recently read a column in Inc. magazine titled “The 9 Circles of Customer Service Hell” and, to my delight, some of the information looked very familiar.

It pointed out service and customer service training problems I have been counseling casinos on for nearly 20 years.

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Clearly, Steinfeld’s article focused on retailers and other traditional businesses that have customers walking through the door and calling on the phone to buy products and services. But there were lessons for casino management as well.

Of the nine circles Steinfeld wrote about, three jumped out at me. Here they are.

The Disappearing Clerk. Let’s revise that to say the disappearing casino employee. How frustrating can it be for a casino guest who’s expecting help from an employee only to discover that that person has vanished?

The Agent Doesn’t Understand Your Question. This applies to the casino employee who doesn’t understand what the guest is saying.

The root of this problem is one simple thing – not listening. Any casino employee who has worked the floor for a decent length of time has heard it all and it becomes easy to assume you know what the guest is saying and that you have the answer. Each guest is an individual with unique needs.

That’s why employees must listen closely when guests speak. Stop, slow down, clear your mind and just listen.

That will solve communication problems that can become maddening for guests. It also ties in with showing you care.

ARTICLE

job applicant’s strengths and weaknesses and form a picture of how that person will behave on the job.

Train Them Well – and Keep It Up. Even if casinos hire the best people possible, those employees will still need customer service training. Few people are naturals at providing service. For most people, it’s an acquired skill.

The good news is that it can be learned. I strongly recommend that casinos hire trainers who bring the following characteristics to the table – they understand the casino business, they teach rather than lecture, they break up learning into bites, they teach through extensive audience participation and they make the whole process fun, fun, fun. Make prospective trainers audition so you can watch them in action. And make training an ongoing commitment so employees continue to learn.

Staff Up With the Right People. This is an area of critical importance to casinos. From a bottom line point of view, it’s extremely costly to hire people, fire them when they don’t work out and hire replacements. This is a vicious cycle that involves throwing hundreds of thousands of dollars down a rat hole. From a customer service aspect, you simply can’t expect people to be good at providing service if they are going to be lousy employees to start with.

Casinos must go beyond hiring warm bodies for the casino floor meat grinder. They must go the extra mile and make a concerted effort to hire the right people for the right jobs. This takes extra effort but it’s worth it in the long run. I’m a huge fan of personality assessments.

These assessments can help casinos understand each

Check Your Policies. In the case of casinos, I’m talking about standards. Many casinos talk big about providing excellent customer service, but they lack the one thing that gives them a firm foundation – written customer service standards. How can employees possibly provide great service if they don’t know what is expected of them? There is a lot involved in creating a customer service culture at a casino, but it all starts with deciding what the service standards should be, putting them in writing and making sure all employees know them by heart. Wonderful things can happen from that point on.

Martin R. Baird Bio Martin R. Baird is chief executive officer of Robinson & Associates, Inc., a Boise, Idaho-based consulting firm to the global

Or Read on App Store growth and profitability. Robinson & Associates is the world

gaming industry that is dedicated to helping casinos improve their guest service so they can compete and generate future leader in casino guest experience measurement, management and improvement. For more information, visit the company’s Web sites at http://casinocustomerservice.com and www.advocatedevelopmentsystem.com or contact the company at 208-991-2037. Robinson & Associates is a member of the Casino Management Association and an associate member of the National Indian Gaming Association.

BUSINESSMAG • ISSUE JANUARY 2015

The “I’m Sorry, but I Don’t Have the Authority to Do That.” Personally, I have no tolerance for this problem and neither does the typical casino guest. Employees must never, ever say that what guests want is outside their responsibilities. It may, in fact, not be the employees’ job to fulfill the request, but employees are there to help, not hinder. Employees must have an “I can do that” attitude at all times. That is precisely what guests want to hear. Just say you will take care of the request and then find help if you need it. Guests don’t care how things happen, they just want their needs fulfilled.

Steinfeld didn’t just outline the nine circles of customer service hell and leave it at that. He also offered solutions.

Again, three of them caught my attention.

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WORLD NEWS

Sri Lanka new President to cancel casino resorts plan

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ri Lanka has voted in a new President and will mark the end of any casino resorts including that of James Packer’s Crown Resorts plan to build a $400 million casino resort in the country.

Mr Sirisena is described as a social conservative and defected from the ruling party in November after previously serving under former president Mahinda Rajapaksa as health minister.

Maithripala Sirisena was announced as the new President after winning the general election, he has already announced in his manifesto that casinos will not be allowed for either Crown Resorts or local developer John Keells Holdings.

2013 saw the plans for a casino resort move rapidly forward but then stalled when news of tax breaks and other incentives offered by the government surfaced. Opposition leaders then started protesting against the casino resorts preferen-

tial treatment.

When Mr Sirisena was working with the previous government he was one of the main supporters for casino resorts, however since his defection has spoken openly against casino resorts and promised to cancel any deals the previous government had set up.

It is now certain James Packer will walk away from Sri Lanka and any possibility of developing resorts there.

CEO of Storm International opens New VIP Casino

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torm International, a global developer and operator of gaming and entertainment complexes, opened a new VIP casino under the brand of “Shangri La X.O.” in Yerevan, Armenia. The casino is located in the most luxurious fivestar hotel and resort complex “Multi Grand” recently opened by Storm International’s long term partner in Armenia – Multi Group.

“This casino is targeted at the high-roller junket class of players from countries such as Iran, Turkey,

UAE and India, who are used to the highest standards of service and security. Invitation only membership and the utmost in privacy have made “Shangri La X.O.” the brand of choice for the most demanding clientele.” Darren Keane CEO of Storm International commented.

The new casino consists of several private gaming rooms, a bar and a dining area with a total square of 700 m² and provides classic table games on 8 tables and 8 modern slot-machines.

Andorra the tiny principality that nestles between France and Spain with only some 100,000 residents is moving forward again on a gambling bill that would allow for a casino to be built and for online gambling regulations to be installed.

Originally the gambling will was proposed in 2013 but now lawmakers in the country are pushing forward in the hope that it will help boost its number one revenues earner tourism, which sees over 10 million visitors each year descend on the small principality and government officials hope that by building a casino will help further economic growth.

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Andorra moves forward with gambling bill

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GAMING NEWS

South Vietnam island to be new gambling destination

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he Vietnamese Prime Minister has allowed the development of casino resorts to be built on the southern island of Phu Quoc to help improve tourism.

ties and relevant state agencies to work more on the details for the development of casino resorts along with the regulations to accompany the projects going forward.

Nguyen Tan Dung said that investors who want to operate gaming facilities on the island must commit capital of at least $4 billion, the Prime Minister has told the Ministry of Planning and Investment to coordinate with the provincial authori-

However the Prime Minister will have the final say on all casino resort proposals from international casino developers.

local authorities have set aside some 30,000m² for casinos space which would accommodate 400 gaming tables and up to 2,000 slot machines. Any plans by casino developers would also need to have hotels and conference centre facilities.

Phu Quoc Island is located off the western coast of the Mekong Delta province of Kien Giang.

In the plans to allow gambling on the island the government and

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n announcement from developer The Eden Leisure Group who are building a casino project in Malta are soon to announce who will run the development now that the casino license has been granted.

“The partner operates in 80 locations in nine countries, offering a substantial loyalty rewards programme. It should be able to bring many of its members here to Malta,” said executive chairman of the Eden Leisure Group Ian De

Cesare.”

Because the government announced it would allow for another casino in Malta the group delayed their other developments such as the refurbishment of the Intercontinental and the addition of two floors, construction of the Holiday Inn Express, and a total revamp of the Eden Arena. So they could include the development of the casino as well.

However delays and the court case appeal by another casino opera-

tor on the island the Dragonara who also wanted to build a casino meant that the development dragged on for nearly two year, but following those appeals in 2013 when the government decided to allow both proposals now means that the Eden Leisure Group can now proceed.

Now the casino development which will cost €31 million at the Intercontinental Malta which will reopen in May and the casino to open in the last quarter of this year.

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Malta casino operator to be announced soon

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GAMING NEWS

South African government squashes online gambling hope

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ollowing media reports announcing that the South African government would again consider legalising online gambling in the country the Department of Trade and Industry (DTI) has issued a statement announcing it is not considering legalising online gambling and at the same time sending a warning to online gambling operators that they will be severally punished if found guilty of offering online gambling to citizens in the country.

“Online gambling, or what others refer to as remote gambling, is not allowed in SA, and the National Gambling Board together with other law enforcement agencies will act on this illegal activity with immediate effect.” Said the statement from the DTI. “The DTI has made it publicly clear that there is no intention on the part of government to propose the

legalisation of online gambling in SA. This means this activity remains illegal, and any person offering or operating such a business is committing an offence under the law.

“Perpetrators, whether operating an illegal establishment or participating as individuals could be liable to a fine of up to R10 million and/or 10

years in jail.”

This new statement from the government department which would be responsible for regulating any online gambling seems now certain to have closed any hope of online gambling being legal in South Africa for the foreseeable future.

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he new Studio City casino resort costing $3.2 billion being built by Melco Crown Entertainment will have a Warner Bros. Family Entertainment Center that will see characters such as Batman, Wonder Woman, Superman and the Flash feature to entice a more family orientated visitor to the world largest gambling hub.

quarter of 2015.

Melco Crown Entertainment which is run by Lawrence Ho and James Packer will offer a Batman rise as the main feature for it new resort scheduled to open in the third

It also matches what Chinese President Xi Jinping said on a recent visit to the gambling hub that operators need to diversify and not rely on gambling only.

It is aimed at the vacationing Chinese family and is inspired by a Hollywood theme and will also feature 400 gaming tables and two hotels containing 1,600 rooms in a move that focuses on the Las Vegas model of bringing more holidaying families to Macau.

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Studio City to feature Batman & other superheroes

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

WORLD NEWS

IGA8 All Sold Out weeks before ceremony

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he biggest global players in the gaming sphere are set to descend on to the historical Savoy Hotel at the 8th International Gaming Awards(IGA) known as the gaming industry ‘Oscars’ www.gaming-awards.com The elegant event is only around the corner so dust off those ball gowns and tuxes! It takes place at the magnificent Savoy Hotel on the 2 February 2015 and has been dubbed the biggest gaming charitable event of the year and the most transparent awards ceremony within the gaming industry.

Organisers and hosts of the 8th International Gaming Awards (IGA) which recognises the very best operators and suppliers from the gam-

ing industry over the last 12 months have announced they have sold out two weeks before the ceremony takes place.

Colin Thompson Director of Clever Duck Media said, “this is the first year that two weeks before the ceremony we are sold out, normally it is the final week that we close out sales but this shows how growth in the IGA has been because we offer full transparency in the judges voting to all finalists.”

Awards will be handed out to operators and suppliers from across the globe with the most innovative and successful companies over the last 12 months.

The IGA’s global gallery of the impressive line-up of supporters and sponsors will be making the event one to truly remember.

Our charity item Sponsor is Mr Green sponsoring some stunning Auction pieces including Gold Bar, item by Cartier, Collector item Gold Coin in support of Care International charity.

We are looking forward to the 8th International Gaming Awards and ready to kick start 2015 in style.

Meet, Mix and Mingle with architects of change at biggest charity event of the year!

Yggdrasil Gaming hatches Draglings video slot launched its latest innovative video slot, the dragon-themed Draglings.

This mythical five-reel slot is a longer player, low variance game and features luminous dragon eggs in a diamond-shaped window with three, four and five symbols on each reel. There are 20 + 20 paylines traversing across the screen.

Although this is a lower variance slot, it offers both long play and winning potential. Players are able to enjoy up to 75 Free Spins, Wild Symbols, Expanding Wilds as well as a special Spreading Wild

and more of the Special Wilds in Free Spins. This final innovative feature brings more Wilds with the potential to boost winnings.

Draglings invites you into the cosy dragon lair to keep you warm during those cold winter days.

Fredrik Elmqvist, CEO of Yggdrasil Gaming, said: “This time last year we hadn’t even launched a slot game and we now have nine in our portfolio.

“With Draglings we were hoping

to breathe a little fire into the casino games sector and this is one of our most exciting games to hatch yet.

“We’ve got plenty more content in the pipeline so make sure you come to our stand at ICE to see how our games can help drive your turnover.”

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Yggdrasil Gaming has

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GAMING NEWS

AC Mayor predicts another casino closure

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he Mayor of Atlantic City Don Guardian has said that 2015 will be “a year of healing” for the once second largest US gambling zone, however he also predicted that 2015 will also see the closure of another casino and not that of the Trump Taj Mahal after billionaire investor Carl Icahn made a deal to save the casino resort just before Christmas saving 3,000 jobs.

Although with four casinos closing last year with the loss of 8,000 jobs the first Republican Mayor in 23 years believes that another casino will shut before things get better for the city.

“For 2015, I think it’s going to be a year of healing,” he told The Associated Press in a year-end interview.

“It’s a year of progress.”

However the Mayor did not mention which casino he thought would close much speculation from

observers is that it most likely to be Bally’s Atlantic City owned by Caesars Entertainment whose CEO Gary Loveman only said in October that the casino resort needs to make some money.

It was August when Caesars closed its Showboat casino which at the time was still profitable but with three other casinos run by Caesars in Atlantic City it was closed to reduce

competition on its other properties.

But now it looks like Bally’s will be the fifth casualty in Atlantic City as Caesars struggles with huge debts, with part of the company going into bankruptcy this month.

“You just have to accept what happens,” said Guardian. “It’s almost like, ‘Why does a flood occur, or why does a hurricane happen?’”

Cyprus pass gambling bill to parliament

However first the ministry of commerce is inviting any interested

parties to submit their remarks on the draft regulations, which have been posted on the ministry’s website until closing date of the 16th January.

The government bill includes provisions for strict control of the types of games, betting level, and equipment, as well as the actual venues housing the casino. Also the bill includes protection of minors, those of a vulnerable addictive nature and the help to those addicted to

gambling.

Successful operator/s will also get to choose where the casino resort is located in the districts mentioned removing the problem for government to those areas lobbying lawmakers on them winning the location battle for the casino resort.

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he Cyprus Cabinet has now sent to parliament the bill governing the development, operation and control of casinos that can be built in southern Cyprus that has never had casinos before.

The bill which has been vetted by the Attorney-general’s office will now go to lawmakers in early 2015 for consideration and a vote.

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EUROPEAN GAMING NEWS

William Hill full year results & Australia business changes

Revenues in online also climbed in 2014 by 18% helped mostly by the British based continuing rise in dominance within the sector. The retail business for William Hill grew only marginally over the 52 week period.

results it said also that £39 million would be set aside to rebrand its Australian business under the William Hill banner, with the Uk’s largest bookmaker saying, there was “potential to drive substantial longer-term value from rebranding all of its existing Australian trading operations under the William Hill brand”.

It currently operates as Sportingbet, Centrebet and tomwaterhouse. com.

However the fourth quarter revenues for retail were down 1% compared to that of 2013, while online business in that quarter rose 16%.

It is expected to start the process in February of this year and Australians will see the Sportingbet, Centrebet and TomWaterhouse brands disappear.

As the company announced its

Shares in William Hill slumped as

much as 5.8pc following the news on results with trading update revealed that the bookmaker has endured a “difficult start to the new year” due to “unfavourable football results”.

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illiam Hill announced their full year profits a little earlier than expected on Monday 19th January due to an administrative email error, posting them to analysts 12 hours before they were supposed to go out, however the full year results for 2014 were up 11% to £371 million.

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INFORMATION

The iGaming Post News site The iGaming Post is an online, international, daily newspaper for the gaming industry. It strives to cover all the latest headlines, delivering them seamlessly through smartphones, laptops and tablets all day, every day. The iGaming Post prides itself in reaching out to global readers, from online poker players to the industry executives.

To find out how your company can advertise contact our sales team

Social Media Between The Infinity Gaming Magazine, The iGaming Post and the International Gaming Awards our network of followers on Facebook, Twitter and Linkedin account for over 10,000 industry professionals and customers interested in the gambling industry.

To find out how your company can advertise contact our sales team

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Subscribe to the iGaming Post & The Infinity Gaming Magazine for FREE reaching more than 10,000 global industry readers. Advertising in the magazine and news site can help your business get seen by the decision makers that count. With the iOS and Android App our publications reach a potential 500 million readership.

To find out more about advertising contact: media@cleverduckmedia.com

BUSINESSMAG • ISSUE JANUARY 2015

Just search for us in the App stores “infinity gaming magazine”

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GAMING NEWS

The poker playing computer that can beat humans

Unlike chess or checkers, in poker, one player doesn’t always know the past moves of the other players.

Plus, a player can win a hand when the other players fold. Therefore, in mathematical terms, the game has imperfect information.

In the version of hold ‘em poker that the computer played, the bets between two players are fixed and the number of raises is limited.

The dealer gives each player two cards, called hole cards. A round of betting follows, known as the “preflop.” After that, three more cards

are laid out on the table, called a “flop.” The flop is a set of community cards, dealt face up, so both players know what they are. Another round of betting follows, and then a fourth card is put on the table, called the “turn.” After a third round of betting, the last community card is dealt (this is known as the “river”), and at that point, the players have to show their hole cards, assuming that one player hasn’t folded yet.

The computer doesn’t calculate every possible hand as it plays.

Instead, it builds a table of results before the game starts. Using some 4,000 central processing units for two months — equal to about 1,000 years of computing time — it simulates billions of hands of poker. The table of results alone took up some 15 terabytes of computer storage, Bowling said. For comparison, a typical backup drive for a desktop is one terabyte. [10 Technologies That Will Transform Your Life].

The algorithm goes through all of the possible hands an opposing player could have, and then tallies up the results for each tactic — for example, raising, folding or calling the bet (i.e., matching the opponent). To get an idea of how big the task is, there are 13.8 trillion different situations that can come up in the game. To get there, every human being on Earth would have to play nearly 4,000 hands of poker, that is a lot of poker for anyone.

As billions of hands are played, the program comes up with an optimal strategy — that is, it converges on what the best move is for a given hand. “The way this works … it’s already played a billion billion hands of poker,” Bowling said.

(Extracts courtesy of livescience. com)

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oesthis mean the end of live poker players as research team led by Michael Bowling, a professor of computer science at the University of Alberta in Canada, developed a computer program that can outplay humans at a two-player poker game — specifically, heads-up limit hold ‘em.

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www.betsoft.com