Summer 2014 Infinity Gaming Magazine

Trump warns more casinos could close

Industry exclusion good or bad thing?

Most popular mobiles ever

InfinityGaming

www.gaming-awards.com | ISSUE JULY/AUGUST 2014

BUSINESSMAG • ISSUE JULY/AUGUST 2014

The APP Awards

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ARTICLE

CASINO COMPETITION IN OVERDRIVE

contents InfinityGaming

EDITOR’S LETTER

Gaming App Awards..............................................04-09

The launch of the global App Awards taking place in November

Interview with Tauri Tiitsaar................................10-14 COO mBet Solutions

Industry self exclusion...........................................16-19 More harm than good? - Christina Thakor-Rankin

Scientific Games buys Bally Tech......................20-21

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APP AWARDS

$5.1 billion deals creates second gaming giant

Casino competition in overdrive.......................28-29 Martin R. Baird latest article

Trump to sue over name removal....................30-31 Prroerty magnate wants his name removed

Nevada tips first domino......................................32-33 Professor Nelson Rose latest intriguing article

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MBET SOLUTIONS

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INDUSTRY SELF EXCLUSION

Betconstruct joins as sponsor for IGA8...........34-35 leading software company joins global awards ceremony

More casinos will close in NJ...............................36-37 Donald Trump warns of more shut downs

California see new online bill this year...........38-39 Golden State will see new online gambling bill in 2014

EU releases new recommendations................44-45 To protect EU states customers with responsbile ads

Most popular mobiles ever.................................48-51 InfinityGaming • ISSUE JULY/AUGUST 2014

Can you guess the biggest ever seller?

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Latest financial reports..........................................52-53 Leading gaming firms announce results

Infinity Gaming........................................................

How and where can you read the magazine?

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CASINO COMPETITION

EDITOR’S LETTER Lana Thompson - Chief Editor

by

EDITORS NOTES Welcome to the July/August edition of the Infinity Gaming Magazine.

It is still vacation time and do not forget you can always read us on the beach or lazing by the pool on your smart phone or tablet.

We have a superb edition for you with a very insightful interview with Tauri Tiitsaar the COO of mBet Solutions on Bitcoin on casino.

As always with our contributing writers we have some truly thought provoking articles from Christin Thakor-Rankin and Martin R. Baird, both are a must read. Of course we also have Professor Nelson Rose adding another superb article.

However the biggest subject I want to bring to your attention is the launch of the Gaming App Awards, which will recognise the very latest technology, design and popularity of the “App”. All gaming companies have them now and with the launch of the App Awards recognition

and profiling of this exciting new sector will happen in November in London.

Nominations are now open for a variety of categories for the App Awards. Exciting times come November.

In closing we want to welcome Betconstruct as our latest sponsor for the 8th International Gaming Awards, where also nominations are now open for what is now recognised as the “Oscars” for the global gaming industry.

Enjoy the magazine.

Have a great August and catch you all in September.

Enjoy

Lana x The Infinity Gaming

InfinityGaming CONTRIBUTING WRITERS Christina Thakor-Rankin Martin R. Baird Professor Nelson Rose

CONTACT US Clever Duck Media Suite 105 Park Plaza Point South Hayes Way Cannock WS12 2DB UK Tel: +44(0)1543 578 689 claire@cleverduckmedia.com PRODUCTION Clever Duck Media Suite 105 Park Plaza Point South Hayes Way Cannock WS12 2DB UK PUBLISHING Infinity Gaming Magazine is operated by © Clever Duck Media Ltd ® Company Reg. No. 687 1018 (Registered in England) ADVERTISING: Sponsorship Opportunities Colin@gaming-awards.com

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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BUSINESSMAG • ISSUE JULY/AUGUST 2014

GAMING AP

CATEG

November 2014 - Central London

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App of the Year Year

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Best Bingo App

The judges will decide the Best App of the Year on the criteria of best UI, design, style, customer engagement, fluidity of game, innovation of technologies and the ability to continue to engage the user time and again. Popularity is a consideration but not the deciding factor on the winner.

The Judges will decide the winner of this category by the style, UI, customer engagement and the ability of the App to encourage continued use while at the same time developing an exciting App for all levels of customer ability to use and enjoy.

Innovative App of the Year

Best in-play Sports App

The judges will be looking for something truly innovative for the winner of this category, the App must have value, be unique in its field, have a familiarity but different to engage and allow the user to feel they have experienced something unique and even taking part in gaming for good.

One of the most competitive of Apps in the gaming sector, it is all about speed and getting the customers the fastest, most available cross section of betting at the right time. The UI has to be perfect, access to the correct screens and ability to place a bet quickly is what the judges will be deciding on to find a winner. The App which offers the best odds is not necessarily the winner but the App the offers the greatest number of choices within the “in-play” app will help decide on whom the winner will be.

PP AWARDS

GORIES Best Casino App

Best Free to play App

The judges will be looking for the best casino App that will have the design, usability, information, style and customer interaction that stands out from the competitors.

The winner will not necessarily be the most popular and downloaded app but will con-

The challenge for a free to play app is to ensure once the user has downloaded the App is that it is instantly fluid in presentation, has style and offers the user the opportunity to be engaged immediately.

Best Poker App

Best Slots App

The winner of best poker App will have an excellent UI, while keeping in mind that most users will be using the app on a small touch screen. The judges will evaluate the nominees on the fluidity of the app, to ensure the user can navigate to the relevant screens easily and unobtrusive. Once again size and popularity is not the deciding factor bit will be taken into account.

Great UI, style, variety of games, fluid navigation and the ability to entertain and engage the user will be the deciding factors on who will be the winner of Best Slots App. BUSINESSMAG • ISSUE JULY/AUGUST 2014

All the winners announced at the spectacular evening

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GAMING AP

CATEG

November 2014 - Central London Best Slots game App

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Great UI, style, unique and innovative game, fluid navigation and the ability to entertain and engage the user will be the deciding factors on who will be the winner of Best Slots game App.

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A

Best Social gaming App Fresh content, familiarity, and valuable incentives are some of the qualities the winner of the category will have along with, the ability to engage the user over a long period of time at the same time the user wants to return again and again to the game. Making sure the users progress through the game quick enough so they won’t get bored along with layering enough levels to be able to entice continued play. Popularity will be a factor in deciding the winner but not the ultimate reason.

The International Gaming App Awards will recognise the v innovative sector. The worlds best companies involved in t event with the ceremony taking place in November in cen

PP AWARDS

GORIES

All the winners announced at the spectacular evening The winner of this category will have shown the commitment to users that the App is not just a tool to divert players to real money play but offer a stylish, consistent, great UI and multi game format for players wanting variable games. The best social poker app will give the user the best experience in the poker sector along with options on chat, find friends and a feeling of community spirit.

Best Sports betting App A combination of best odds and the amount of sports covered will be one of the factors to decide on the winner of best Sports Betting App. Along with UI and the ability to deliver the required sections within the App at a quick and timely fashion to ensure the user is totally engaged.

very best companies working to develop this new and the App industry will be taking part in this prestigous ntral London.

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Best Social Poker App

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EXCLUSIVE INTERVIEW

Interview with Tauri Tiitsaar COO of mBet Solutions / www.coingaming.io Infinity Gaming Magazine sat down with Tauri Tiitsaar, the COO of mBet Solutions to find out more about the Bitcoin only site and to delve deeper into Bitcoin itself

InfinityGaming • ISSUE JULY/AUGUST 2014

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: Thank you for talking to us today, can we start by asking you a little about your background and the role you currently hold?

TT: It’s great to be talking to you today. I started off as a poker player however the business side of poker and affiliate marketing was clearly more profitable in the long term!. The affiliate business went very well during the peak times of poker, whereby the team behind mBet Solutions developed a full affiliate platform, which incorporated the website, accounting, poker & casino deals and all technical solutions for affiliates. I started off as an account/affiliate manager and over time, my role kept growing and growing until the point where I had had very good experience across all parts of the business; being able to handle negotiations, oversee development and consider legal aspects.

Given that our corporate focus is to continue innovating, especially in the gaming industry, we saw the immediate benefits of the Bitcoin protocol for merchants and consumers and seized the opportunity. In November 2013

we started developing a solution for gambling merchants who wanted to operate a turnkey solution which incorporated all of the intrinsic benefits of transacting in Bitcoins and allowed players to play casino slots, live dealer, poker and bet on sports. However we have a very diversified business model and continue to provide high end technical services to many well known (fiat based) sportsbooks and casinos. My own role as the COO involves the oversight of daily company operations, negotiating with new clients, ensuring our business goals are being met and making sure the innovation does not stop!

Q: mBet Solutions is a B2B service provider, what does the company offer its clients?

TT: We offer our clients a full gaming platform denominated in Bitcoins and offering such verticals as poker, casino, live casino and sportsbook whilst ensuring the gaming operations and treasury management are fully licensed, secure and auditable. We also provide all of our clients with a backend, offering full reporting including statistics, user reporting and affiliate reporting – everything is shown to our clients in real time without the need to refresh the page.

Exclusive interview with Tauri Tiitsaar

Q: The service is based on Bitcoins and no other currency option, how has that been received?

TT: Since we have gone live wih the platform in February 2014, we have had extremely positive feedback from our partners and their players, especially in regard to the flexibility of the platform. As we have

been operating in the fiat currency gambling industry for a long time we have a great deal of experience, in understanding what all entities require for a seamless and entertaining product. Being able to offer this for clients interested in bitcoin has been very well received and the amount of clients approaching us us keeps increasing. Unfortunately, our gaming license does not allow us to accept Bitcoin deposits and convert them to USD or EUR (as then we would be a money exchanger rather than just a gaming platform), so for some clients, we have developed parallel, yet completely separate, projects with turnkey casino platforms in both Bitcoin and Euro currencies. The vast majority of our new clients though, think there is too much competition in the Fiat gaming world, so they are opting for a new Bitcoin Casino!

Q: For some of our readers who are not that familiar with Bitcoin, how and where do you buy them and who decides the exchange

rate for them?

TT: We do not operate in the exchange business, nor do we facilitate the buying or selling of Bitcoins. We recognise Bitcoins as a virtual gaming token with no inherent value. However, that said, there are many exchanges or merchants who specialise in the buying and selling of Bitcoins. For most exchanges the rate is determined by simple economic supply and demand, like the prices on a stock market.

Some of the most trusted sites for the buying and selling of Bitcoins are: www.kraken.com www.bitstamp.net www.coinbase.com www.btc-e.com www.okcoin.com www.localbitcoins.com

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If there are users playing and you are logged into your backend administrator account, you will see the numbers constantly changing and you can monitor activity. For clients who are in need of a design we provide the services of our very experienced design team and should they require tier one customer support we provide that as well with FAQ, live chat and tickets support.

We also manage all the relationships with our 3rd party software providers.

Of course, the same platform is available for fiat based gaming as well; but the focus of this interview is on our Bitcoin gaming platform!

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known as the blockchain.

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Q: What happens once you buy say 3 Bitcoins and before they deposit in a Bitcoin casino like yours the value drops on Bitcoins, the customer is a loser already?

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TT: The value of a Bitcoin is determined by market forces and the exchange used. In reality the value of Bitcoins is simply the price that someone is willing to pay for them.

However, if a player has 3 bitcoins, deposits 3 bitcoins on www.bitcasino.io, wins 1 bitcoin and then cashes out 4 bitcoins, he will then have 4 bitcoins, with which he can go and buy something on overstock.com or expedia.com. The realisation of a loss, would only happen if the user wanted to cash out his Bitcoins on an exchange immediately.

To be quite honest, we do not really care what the market price of BTC/ EUR or BTC/USD is; rather we are excited that all Bitcoin transactions are irreversible, instant and can be transacted across any country borders, all through the public ledger

Q: There has been much division in the online world over Bitcoin, with those in support pointing to savings with card processors and those against citing possible money laundering: has the company considered these pitfalls in the Bitcoin business?

TT: As with everything new in this world, at first it might look scary but Bitcoin is highly beneficial to merchants compared to fiat payment options since it virtually has no fees.

Compare this to credit cards where in some instances a merchant can be charged up to 20% in fees for the payment (not mentioning the hold on credit card funds for up to 6 months) and the inherent issues with chargebacks and fraud.

Hence, there is a huge benefit for merchants who are largely at the mercy of banks and who now want to eliminate bank fees.

Upon adoption and when applying the proper security measures then big merchants like eBay, Expedia & Amazon could save millions, or even hundreds of millions in the long term, with lower processing fees and no fraud. Of course there are potential risks with Bitcoin with regard to money laundering and the now extinct Silk Road marketplace,

however I dare say that there is more drug dealing and money laundering done with $100 USD bills, than Bitcoins. There are dangers with everything that you use or do, in some areas the risks may be high and in some they may be low. All we can do is prepare well, observe and undertake our obligations under our gaming license, keep our systems and processes secure and watch out for new potential threats.

Q: How big do you think Bitcoin will become in the next five years?

NL: Bitcoin is currently not that widely adopted so there is a lot of room for rapid expansion. Already we have ebay giving very strong signals that they will include bitcoin as one of their payment methods in the near future. Overstock, which perhaps currently is the biggest merchant accepting bitcoin, provides its customers with the option to pay in bitcoin at checkout. The more bigger merchants start to adopt bitcoin the more popular it gets as it helps to educate people about the crypto-currency. We strongly believe that in the next five years you will be able to pay in bitcoin at most places around the planet since you can even use your smartphone to make payments and we all know how quickly smartphones are spreading. It makes payments cheaper and more convenient.

I heard the other day from a friend of mine in Brazil for the World Cup, went into a bar in Sao Paolo, used a Bitcoin ATM and withdrew Brazilian Reals (cash) from his Bitcoin Wallet; how the world is changing‌.

Exclusive interview with Tauri Tiitsaar

Q: Are there any dangers that players should be aware of using Bitcoin that you can offer advice on?

TT: Using bitcoins has the same dangers as using euros or any other paper currency. One should apply the same rules for bitcoins as for euros. Do not give out your wallet information and keep it secure like you would with your bank account – don’t be a wide-eyed tourist with an expensive camera hanging around your neck in the middle of Rome! When buying bitcoins make sure you use reputable exchanges.

Keep your computer safe as well by running regular virus checks and applying any other security methods that you are familiar with.

Q: Do you think Bitcoin will replace Card Processing online in the long term or will credit cards always be there?

TT: It is very hard to predict and it may never fully replace other methods, but it will definitely be a competitor. Maybe in twenty to fifty years it could fully replace credit

cards but that would be a bold claim. No one ever thought that one day the world would stop producing VHS tapes either but it happened.

Q: If you had to give just three advantages of using Bitcoin what would they be?

Also if there are any disadvantages what are those?

TT: Very low or nonexisting fees, all transactions are instant and you can pay with your smartphone! The only disadvantage I can think of right now is not knowing enough about bitcoins. Most importantly keep yourself educated and gamble responsibly!

Q: Have you bought Bitcoins yourself?

TT: Yes, absolutely. The first time that I bought bitcoins was last year and I bought it by meeting with someone face to face. I met an exchange guy then sat down at a café for 2-3 minutes with him. I gave him cash, he opened his laptop to make the transaction and it was instantly in my bitcoin wallet, which I then checked from my phone! Since then I have used online exchanges as well and the wallet on my phone to pay for bills in cafes.

Q: On to the company you offer live dealers and in the launch announced that the girls are the prettiest live dealers in the busi-

ness, where did you get them from?

TT: Well you can never say about a girl that she is not the prettiest in the world! Our amazing live dealers are from all over, Costa Rica, Spain and Lithuania. There are studios set up where the dealing is done and it is streamed to the player via a high definition video feed. The dealers truly are stunning but in the end seeing is believing so everyone should check it out for themselves.

Q: Are all the games offered designed by your company or are they from software providers?

TT: The games we have are integrated through 3rd party software providers.We have found the best looking, most popular and entertaining games and bring them to our partners and their users. As for

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Our amazing live dealers are from all over, Costa Rica, Spain and Lithuania. The dealers truly are stunning but in the end seeing is believing so everyone should check it out for themselves”

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Exclusive interview with Tauri Tiitsaar

TT: designing our own games; I can say that there is something similar in the works!

Q: How far can the company expand, or is it up to the success of Bitcoin itself for your success?

TT: All businesses go hand in hand with their respective industries, if the industry does not grow then the company cannot grow either.

Bitcoin becomes more popular every day and the rate of mainstream adoption only increases therefore we are confident the industry will grow and so will we.

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Q: Before we let you go Tauri, how do you see the future for mBet Solutions, will it be in Europe or Global?

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TT: In today’s world where everything is online, you can travel anywhere in a matter of hours and global marketing is made easy, it is more difficult to stay local than go global. We have already worked with many big name global companies and we always strive for more. Our products are tailored for everyone and can easily be modified for specific localised needs, we are capable of growing even more globally.

All the images supplied for this interview are actual dealers from the www.coingaming.io website

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Bitcoin is currently not that widely adopted so there is a lot of room for rapid expansion.

Already we have ebay giving very strong signals that they will include bitcoin as one of their payment methods in the near future.”

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FEATURE ARTICLE

Industry Wide Self-Exclusion: More Harm than Help?

By Christina Thakor-Rankin Our feature writer Christina Thakor-Rankin questions industry self exclusion and is it a good thing for all concerned.

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he changes to the UK’s gambling legislation have, some would say, somewhat inevitably and predictably, re-ignited the debate about problem gambling.

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Without making light of the very real and terribly destructive consequences wrought by gambling addiction, the cynics amongst us will have anticipated this discussion in the light of changes to the law which will see the number of UK licensees significantly increase going into an election year.

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Others still will suggest that having won the latest changes to gambling legislation on the back of a ticket of enhancing player protection and increasing social responsibility, incidental benefits to the Treasury notwithstanding, the regulator now has no choice but to follow through with actions which back up this intent.

Whatever the motivation, the fact is, the subject is back on the table and once again, all interested parties

are provided with an opportunity to come together and address an issue which all too often sees headlines based on fiction rather than fact.

The facts are that gambling addiction is real, and it does destroy lives.

And that is about as much as we

can say with absolute certainty, for beyond that, all cases are different, based upon the individual, their personality and their circumstances.

Consequently, to draw broad generalisations as to the cause, and thereafter the potential cure is to run the very big risk of getting it very badly wrong.

It is often suggested that an

increase in gambling addiction is linked to the increase in the number of gambling opportunities and the way in which they are marketed.

Certainly the changes to the UK gambling laws will see a significant increase in the number of UK operators, but this is simply a case of an operator replacing their current license with a UK one. This will not necessarily increase the number of operators targeting the UK. More likely, the fact that moving to a UK license carries the additional burden of hefty taxation means that many of the smaller, and arguably less responsible, operators who currently target the UK will have to cease. The more likely scenario is that the UK license changes will probably reduce the number of online operators in favour of those who are more responsible.

In terms of marketing, the CAP codes, and more recent consultations are all aimed at ensuring that gambling is marketed in a responsible and appropriate manner. ASA

There is also the stance of the operators themselves. Some as a result of social responsibility, and others as a result of reputation and commerciality, that there is no benefit to any party in allowing someone to develop a problem. As a result most UK operators do, do the right thing, albeit for sometimes different reasons.

All of this would suggest that everyone in the industry has bought into the whole ‘social responsibility thing’, and that being the case, poses two possible next steps. The first is to maintain the status quo.

Current measures, attested to by the fact that there has been no discernible increase in problem gambling linked to the betting and gaming sector over the last few

years, are working. The second is to suggest that having come this far, surely it makes sense to take it to the next level and move to a more joined up approach – industry wide player protection.

In theory, it makes sense. If a player has a major addiction, voluntary, piecemeal self-exclusion has limited value or success in today’s multi and cross-channel world where the boundaries between retail, remote and region become more and more blurred. The nature of an addiction is that unless controlled, temptation is always likely to win. The logical answer is to remove all temptation by implementing industry wide exclusions.

In the case of retail operators this may mean additional expenditure in terms of entry/membership cards but it will ensure that problem gamblers are supported by not being able to access facilities anywhere

in the country. This could then also extend to digital and vice versa, providing a blanket ban for anyone who self-excludes with any gambling operator in the UK. A player who in a moment of lucidity recognises they have a problem and elects to self-exclude from an operator, has not lost the addiction. They will simply find another operator the moment they feel the urge to gamble again. Industry wide self-exclusion will close the loophole and ensure that the next time temptation beckons they have no outlet.

This is taking a cold turkey approach to the problem, and whilst it can work well in some scenarios and with some individuals, it is not always the best way of dealing with an addiction which is more psychological than physical. The fact that someone can no longer gamble with a licensed operator does not

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is there to ensure that any that do sneak through the net are dealt with – and its adjudications clearly show that it does.

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ean that the problem will go away or stop.

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Addiction is addiction. It is a fact of life that someone who has an addiction will find a way of feeding that addiction. In the case of a gambling addiction, the opportunities of getting a fix are fairly extensive, ranging from ‘borrowing’ another’s identity to access premises, or travelling outside the UK to get an intense hit (not so far if Scotland votes ‘yes’) to betting with ‘friends’, illegal ‘backstreet’ bookies, or unregulated, and possibly, unscrupulous remote operators outside of the UK.

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Additionally there are those who currently seek to manage their gambling by choosing to exclude themselves from a particular environment, e.g. they have no concerns about their gambling on sports, but do want to stay away from FOBTs. In the future, if seeking to manage the less desirable aspects means that it will also curtail their problem free enjoyment of sports betting, then many may think twice about seeking help.

Currently, whilst not providing actual counsel or support, many operators do take a pro-active approach where they see a customer presenting concerning behaviour.

Additionally, it is this contact with the operator that often provides the catalyst, either as a result of repeat exposure to information displays or actual interaction that prompts the customer to seek the help they need. If a problem gambler is no longer involuntarily exposed to this because they took the step of selfexcluding from one operator and are now banned from all, how many will actually get the help they need?

Whilst industry wide self-exclusion sounds like the right thing to do, for someone with a gambling problem it could be the very worst thing.

From a high level it will appear to be working as the numbers of individuals self-excluding (or from a commercial perspective, encouraged to self-exclude) will most likely reduce, and worse the problem will cease to be visible to those who are probably best placed to provide

assistance, and encouragement to get support.

Gambling addiction is real, and it does destroy lives - but applying a simple one fits all solution to a problem which is often the physical manifestation to a complex deep rooted issue in the psyche of the individual is just as likely to cause more harm than help.

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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US GAMING NEWS

Scientific Games buys Bally Technologises for $5.1 billion rival competitor SHFL for $1.3 billion, now one year later the company has been purchased

by Scientific Games who itself bought up WMS for $1.5 billion recently.

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cientific Games has purchased Bally Technologises for $5.1 billion, the deal which will be $3.27 billion in cash and the remainder absorbing Bally Technologises debt.

It was only one year ago that Bally Technologises bought

The companies anticipate $220 million in annual cost savings and $25 million in annual capitalexpenditure savings by consolidating operations and generating efficiencies in the areas of manufacturing, engineering, field and customer service and administrative operations.

Gavin Isaacs now CEO at Scientific Games knows Bally Technologises very well as he has worked for them in the past along with more recently SHFL prior to his appointment with Scientific Games.

Adelson spends less on lobbying than Caesars gambling in the US and to spend whatever it takes to defeat the spread in other states considering its merits seems not to be “spending” as much as others in the fight over online gambling after all.

Website opensecrets which tracks political contributions says that Sheldon Adelson and his Las Vegas Sands company spent a total of $460,000 in the hope of influencing political figures against the spread of online gambling. But at the same time other casino operators spent much more, such as Caesars Entertainment which spent a total of $1.8 million in the same period attempting to influence politicians of the merits of online gambling.

Indeed add together MGM, Boyd and Churchill Downs

who spent a total of $570,000 which again passes the money spent by Adelson.

However these amounts don’t account for outside spending, money spent at the state level, or personal contributions to candidates, these are the totals spent on registered Washington DC lobbyists. So tracking of those amounts is a lot more difficult and Adelson could very well be outspending in targeted areas of the US. Observers believe that at present the battle is in stalemate, with Adelson failing at present to move forward on banning all online gambling in the US, but at the same time those casino operators in favour of online gambling are struggling to get more states to expand and legislate for online gambling.

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Sheldon Adelson who pronounced war against online

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US GAMING NEWS

IGT Q3 revenues slide but profits up California real money online poker legal says attorney

When the Native American Iipay Nation of Santa Ysabel in California launched privatetable.com, a real money online poker site for Californian residents only many observers have questioned if it is legal.

The US based slot machine manufacturer which is being sold to lottery giant GTECH in a deal worth $6.4 billion early next year said that the third quarter revenues were $467.6 million which is a drop of 19% compared to the same period last year.

However revenues grew by 10% to $72.1 million for the third quarter compared to 2013.

IGT CEO Patti Hart said the profit increases were the result of “effective cost management” that “improved efficiencies in a challenging industry environment and has positioned us for future market opportunities.”

With slot gaming revenues for the company decreasing 12% for the quarter to $218 million which the company share with casino operators and sales of machines slumping 36% to $167 million. But the interactive part of the company enjoyed a rise of 15% to $83.1 million mostly due to the companies ownership of DoubleDown Casino which operates through the Facebook platform.

IGT said the company’s social gaming arm boosted revenue 31 percent to $205 million in the first nine months of the fiscal year.

Most recently the attorney representing the tribe Martin Owens, came out and stated just exactly why the online poker site is legal in the state.

“If an Indian tribe, which is (federally recognized) and has land of its own wants to offer Class 2 gaming, they don’t have to consult state authority at all,” Owens said. “They can go directly to the feds.”

“There are some administrative requirements,” Owens added. “They have to do a proper job administering it. But once it’s arranged, they can offer Class 2 Gaming.”

“The state has to have a compact with the tribe to offer Class 3 gaming,” Owens said.

Online poker comes under those categories so under state law the tribe is totally operating legally.

However this will most likely not stop the other tribes and interested parties trying to shut it down as they fear they have lost out in the race to take a piece of the huge online poker business in California.

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nternational Game Technology (IGT) has reported that their third quarter profits grew even thou their revenues declined by 19%.

With a state online gambling bill stalling each time it is presented the Iipay Nation have taken matters into their own hands and gone for it. California is well known to be the jewel in the US online gambling sector crown with many operators wanting to get in to the state which has a population of over 38 million residents.

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US GAMING NEWS

In the biggest hint that online gambling is soon to come to Pennsylvania, the state owned Parx Casino is to launch a free to play online casino website, with many believing it is just a small step to then offering online cash games once the state passes legislation to regulate the fledgling sector.

The launch of the site is in partnership with gaming developer GameAccount Network and is scheduled to be live in the later part of 2014. Commenting on the announcement, Greenwood Entertainment and Racing’s chief technology officer (CTO), which owns Parx Casino, said: “GameAccount has demonstrated its regulated gaming capability in New Jersey and the merits of simulated gaming when integrated with a casino management system.

By deploying its system onproperty, Parx Casino will have the opportunity to launch simulated gaming nationwide before year’s end and be well prepared in the event regulation of real-money internet gaming emerges in the state of Pennsylvania.”

Nevada annual revenues up

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evada had a promising year in 2013 with revenues up overall by 2.9% to $11.2 billion compared to 2012.

Baccarat was the main driving force for the revenue increase with casinos collecting $1.6 billion on the game last year, representing a huge jump of 18.3%, the largest jump ever for the game in Nevada.

“Baccarat is driving the bus,” said Michael Lawton, senior research analyst for

the state Gaming Control Board, which released figures today for the 12-month period that ended 30th June.

Interestingly without that increase from Baccarat the casinos revenues rise would have only been 0.6% With Slot-machine revenues falling 0.4 percent to $6.7 billion from the year before but still responsible for 60% of the total win, the lowest in fourteen year however.

The Las Vegas Strip took in $6.6 billion, representing 58.9% of the total win in Nevada and a record high.

Sports betting amassed $227.4 million up 46.5% and blackjack revenue were $1 billion, up 4.8 percent.

Craps revenue was $368.6 million, falling 0.3%. Roulette winnings were disappointing at $339.9 million, down 9.5%.

Trump Plaza in AC to close

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he local press in Atlantic City say that another casino could be soon to close, The Trump Plaza Hotel would be the fourth casino in the state to shut should reports

be true, laying off some 1,000 staff. It is being reported that a high ranking official from Trump called state senator Jim Whelan informing him that the casino will close on

the 16th September with the loss of 1,000 jobs and adding another blow to the struggling seashore casino business. The resort is owned by Trump Entertainment Resorts .

BUSINESSMAG • ISSUE JULY/AUGUST 2014

Pennsylvania to launch online free to play casino

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US GAMING NEWS

Former casino lobbyist Abramoff questions Texas Governor stance

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he US casino lobbyist who did time in prison for his work with dodgy casino boat operators and also for his lobbying for Indian tribes that made him millions but saved the tribes billions has hit out at Texas Governor for his strong opposition against online gambling.

Jack Abramoff who was jailed for 43 months in the biggest ever casino lobbying scandal unveiled has taken a few swipes at Governor Rick Perry who is expected to be one of the republican candidates to run for the 2016 Presidency in the US. Abramoff says that Perry and the

few other republicans that oppose online gambling has received substantial political contributions from Las Vegas Sands Boss Sheldon Adelson, who is staunchly opposed to online gambling and is running a campaign to stop all online gambling in the US. “The gaming industry is entirely a political creation, and everything about it is politics,” Abramoff told WND in an exclusive interview.

“These politics are generally shaped in the public good, but all of it relates to politics and market share.”

However Rick Perry denies ever even speaking to the Las Vegas Sands boss regarding online gambling, but Abramoff in his new book “Capitol Punishment” believes that contributions and shaping political opinion by politicians is un-avoidable.

Nevada revenues up for June

The Las Vegas Strip took $532 million in the month, up more than 22% from the same period last year.

With Downtown Las Vegas casino revenues up to $41million which represents a 12% increase from June 2013.

However Reno casino revenues of

$48 million were down 3% and South Lake Tahoe casinos brought in $12 million and were down 2% from last year.

In total the state collected $44 million in taxes from gambling for the month, representing only less than 1% from the year before.

BUSINESSMAG • ISSUE JULY/AUGUST 2014

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evada casinos had a generally good June in terms of revenues with the state gambling venues jumping 14% reported the states Gaming Control Board, with totals of $907 million for June.

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ARTICLE

Casino Competition in Overdrive: The Stench of the Saturated, Rotting Casino Industry in the United States

By Martin R. Baird Our feature writer Martin Baird in his August article looks at the problems in the US casino business, what are the mistakes and can anything be done to save it.

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asino competition in the United States is in overdrive and the resulting market saturation is roiling the industry.

It sounds like a bad scene from the newest “Sharknado” movie, but this is not some Hollyweird concept. This is the reality that is affecting people from Atlantic City to Indianapolis and beyond – casino cash cows are dead and dying at an alarming rate. And they stink.

InfinityGaming • ISSUE JULY/AUGUST 2014

For years, people have said that casinos are recession proof and even grow during tough economic times.

That might have been the case in the past, but those days are long gone. The Great Recession and market saturation have created a death spiral for casinos.

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You can easily look at Atlantic City as the poster child for the new reality of the overbuilt casino industry. It looks like 25 percent of the casinos in Atlantic City will close this year. Oh, how far the city’s casino industry has fallen! For decades, Atlantic City was the second largest gaming market in the U.S. behind Nevada.

Not too long ago, if someone had suggested this situation would come to pass, they would have been seen as a laughing stock. (I guess I really stuck my neck out in 2002 during another economic downturn when I made the case that casinos are no longer recession proof, no longer countercyclical.) But today’s gaming industry is

being shaken to its very core and it’s not going to end any time soon.

The root of this tectonic shift is an anemic economy and states starving for tax revenue.

Back in the day, if you wanted to go to a casino and you lived in the eastern U.S, your only real choice was Atlantic City. Now there are casinos from New York to Maryland. This means that potential players have more choices that require less travel and offer the lure of a newer property. Why would anyone drive from Baltimore to Atlantic City when they have sparkling casinos a few miles away? The answer is they wouldn’t and they aren’t.

There also is a systemic problem that most people are not thinking about – states that use casinos as an ATM to pay for schools and roads and to keep taxes low will soon face very tough decisions. For quite some time, people from Maryland drove to Delaware to gamble.

The casinos’ parking lots were packed with cars from Maryland. This meant more tax revenue for Delaware without raising taxes for the general public.

Recently, the Delaware state senate announced a $10 million bailout for the state’s casinos. That is a serious change in fortune. In seemingly the blink of an eye, those casinos have morphed from a profit center to an

ARTICLE

(Continued) expense for the Delaware treasury. Also recently, Indiana casinos announced substantial losses to properties in Ohio.

State legislators who ran on (1) not raising taxes and (2) adding programs funded by the gush of casino tax revenue, well, what are they going to do now? They have two very bad choices.

Either they reduce or eliminate programs or they raise taxes.

FYI, those are not platforms that get people re-elected.

This problem is not limited to the eastern seaboard.

When Florida opens pending mega resorts around the state, the one in the panhandle will be very disruptive to casinos in Alabama and Mississippi, markets that have long lived off Florida guests coming over for entertainment. A Tunica, Miss., casino has already closed. What will happen to the casinos in Oklahoma and Louisiana if Texas sees a need for more tax revenue? Why drive from Dallas or Houston to a neighboring state when you can take the short drive across town?

These putrid cash-cow casinos will have an immense impact on states. The loss of tax revenue is only part of the picture. Casinos that close employ lots of people, sometimes thousands. Most people think these are lowpaying service jobs, but they are sorely mistaken. With “tokes,” casino employees often make significant income that won’t be replaced by “would you like fries with that” jobs.

together and make intelligent decisions. They must work together so that casinos can remain open and profitable and offer guests an amazing entertainment experience.

Both sides need to team up if they hope to survive for the long term. It is inevitable that more casinos will close because some states have made it too difficult to make a profit and compete. Casino owners will use their capital where they can generate a return on their investment and they pull assets out of markets that are just too onerous and competitive.

If you think the stench is bad now, just wait a little while.

More states are still looking at entering the casino market or allowing more casinos to open. There is no doubt this will kill even more casino cash cows and leave a very putrid mess.

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

Blackjack dealers can make significant tips working just part time. This allows them to take care of their children and still afford homes and cars. There are not many jobs that will give them that flexibility and revenue potential.

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.

Now is the time for casino owners and states to come

BUSINESSMAG • ISSUE JULY/AUGUST 2014

By now, it is abundantly clear that the casino industry is reaching maturity and saturation. That means that the glory days of “build it and they will come” are a fading memory. In order for any casino to grow, it will need to take revenue from another casino.

There’s no other source for the money.

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InfinityGaming • ISSUE JULY/AUGUST 2014

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US GAMING NEWS

Trump suing to have name removed from AC Casinos Former property magnate of casinos in AC now wants his name removed from former casinos he once owned

The real estate and reality tv star who once owned and ran both the Trump Plaza and the Trump Taj Mahal has filed papers in the state Superior Court in Atlantic County, seeking a court order directing Trump Entertainment Resorts to immediately cure what it terms a breach of Trump’s licensing agree-

ment with the company or remove his name from the casinos and the company itself.

“I want it off both of them,” Trump said in an interview Tuesday evening. “I’ve been away from Atlantic City for many years. People think we operate (the company), and we don’t. It’s not us.

It’s not me.”

“Since Mr. Trump left Atlantic City

many years ago, the license entities have allowed the casino properties to fall into an utter state of disrepair and have otherwise failed to operate and manage the casino properties in accordance with the high standards of quality and luxury required under the license agreement,” Trump wrote in his lawsuit, filed in the name of Trump AC Casino Marks LLC. “The Trump name … has become synonymous with the highest levels of quality, luxury, prestige and success.”

The Trump Plaza is scheduled to close in September due to falling revenues as Atlantic City struggles with diminishing number of customers and competition from other states.

Neither Trump Plaza or Taj Mahal owners had any comment regarding the law suit from Trump.

BUSINESSMAG • ISSUE JULY/AUGUST 2014

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onald Trump who presided over a casino empire in Atlantic City when the good times were rolling in the windy city now wants nothing to do with the place and has filed a law suit demanding his brand name be removed from the two remaining casinos that carry his name.

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FEATURE ARTICLE

Nevada Tips First Domino © 2013, I. Nelson Rose. Prof. Rose is recognized as one of the world’s leading experts on gambling law, and is a consultant and expert witness for governments and industry. His latest books, INTERNET GAMING LAW (1st and 2nd editions), BLACKJACK AND THE LAW and GAMING LAW: CASES AND MATERIALS, and the recently published GAMING LAW IN A NUTSHELL, are available through his website, www.GAMBLINGANDTHELAW.com.

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he state of Nevada has legalized, again, Internet gambling. Only this time, people are paying attention.

The first few times the Nevada State Legislature passed laws permitting online gaming, nothing much happened. It has been 17 years since Governor Bob Miller signed SB 318 into law, making Nevada technically the first state to expressly prohibit -- and permit -- Internet betting.

That law is still on the books. An Internet operator, anywhere in the world, who accepts a wager from a person who is physically present in Nevada commits a misdemeanor and “may be prosecuted within this state.”

Anyone who makes a bet from Nevada via the Internet is committing a misdemeanor, regardless of where the person accepting the wager may be.

InfinityGaming • ISSUE JULY/AUGUST 2014

There are a few exceptions. This being Nevada, the Legislature at first exempted only the state’s own licensed casino operators. This was the first time that any government in America expressly allowed its licensees to operate real money games on the Internet.

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Over the years, the Legislature passed a few more Internet gambling statutes. It even told the state’s gaming regulators to gear up for licensing intra-state poker, for the time when federal law made it clear that Internet gambling was legal.

It’s unclear why Nevada lawmakers limited the first licenses to online poker. Perhaps they were afraid that if people could play blackjack and slot machines from their homes and hotel rooms, they might not spend

much time at the resort-casinos. The politically powerful, biggest operators on the Las Vegas Strip now make a majority of their sales at their restaurants, showrooms and stores. Brick and mortar poker rooms bring in comparatively little revenue. So the Caesars and MGMs don’t mind if visitors play online poker from their hotel rooms at night with other players AFTER they bet against the house at banking games like craps in the casino.

Nevada’s decision to limit Internet gaming to poker may have been a mistake. Before 2013 was over, both New Jersey and Delaware had their own online gambling operators. But the Eastern states went with full Internet casinos.

But no sports betting.

As early as 1999, courts held that the Wire Act, the major federal anti-gambling law used against online operators, applied only to sports events. So, when the Nevada Legislature began passing laws authorizing Internet gambling, the statutes were carefully written to exclude sports betting.

Nevada regulators did hold some hearings back then.

But no regulations, let alone licenses, were issued, because the federal Department of Justice (“DOJ”) declared that it was not bound by those court decisions. The DOJ sent the Nevada Gaming Control Board a letter stating that it would arrest any Nevada operator that took bets from other states, even if the bets were limited to poker or casino games.

Then, two days before Christmas 2011, the Obama Administration announced that it was giving the states

a present. The DOJ officially reversed its position on the Wire Act. Henceforth, that statute would only be used against interstate sports and race books.

The announcement freed the states to authorize every other form of Internet gambling. State legislatures across the country started considering legalizing intrastate poker and other games. State lotteries, like Illinois, which were already selling subscriptions to their residents online, looked into expanding into selling individual tickets and operating other, more interesting games.

Although the immediate response from lawmakers and operators was to see what they could do intra-state, the possibilities of crossborder betting were not ignored.

Legal analysts, like me, noted that the only barrier to a state accepting bets from other states and even nations was a provision of the U.S. Constitution restricting states in making compacts, which could be gotten around.

The Nevada Legislature rushed through AB 114, which was signed into law by Gov. Brian Sandoval on February 21, 2013. It authorized the governor to enter into agreements with other governments for crossborder betting. A year later Gov. Sandoval and Delaware’s Governor Jack Markell signed an agreement to let players from the two states join in common online poker pools.

On April 30, 2013, Ultimate Poker became the first operator in history to take real money bets on Internet poker games under a license issued by a state (Nevada).

Yes, deposits are difficult, having

to be in person; by electronic or paper check; or by wire, if the amount is more than $500. Most important, players have to be physically present in Nevada.

So far, statelicensed Internet gambling has not been a big success.

But this is probably because the states involved have fairly small populations. But if and when California legalizes online poker, states like Pennsylvania, Illinois and New York will quickly follow.

One American jurisdiction is about ready to join Nevada, Delaware and New Jersey. Lawmakers in the American Virgin Islands have already authorized Internet casinos.

Its regulators also received a letter from the DOJ threatening to charge its licensees under the Wire Act. That threat is now gone. So, the U.S. Virgin Islands will probably be issuing Internet licenses soon. And operators will be taking bets from overseas.

Iowa has studied the issue for years. A bill to allow Internet casinos actually passed one of the houses of the Iowa Legislature. The sessions last only 100 days, so legalization will not come until 2015 at the earliest.

California may act faster. The state is still desperate for any source of extra cash. Voters narrowly defeated legalizing marijuana for tax revenue. If we’re considering selling pot just for the money, who cares about Internet poker?

Of course many people, especially from the religious right, want

to tell people what they can do in their own homes. But, the opposition to Internet poker in California, like the opposition to legalizing marijuana, is funded by companies who don’t want the competition.

The marijuana initiative was defeated, in large part, by T.V. ads paid for by the liquor industry.

The Golden State’s gaming tribes and poker clubs have no problem with legalizing Internet poker – if they are the only ones who get to run the games. That is not going to happen. Legislation will pass once the political compromise is reached that satisfies the politically powerful tribes and clubs, while bringing in big bucks from outside operators.

In states where the local operators are the big money, like the two gaming tribes in Connecticut who are also the state’s largest employers, we know who will get the Internet gaming licenses.

And legalization is going to come quickly. The fights over whether or not to have legal gambling were won years ago.

Today, the disputes are about who will get the billions of dollars that are at stake.

BUSINESSMAG • ISSUE JULY/AUGUST 2014

The domino effect

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etconstruct will take part in the Australia Gaming Show as sponsors and new exhibitors. The firm will be showcasing its online and land-based Sportsbook, Poker, RNG and Live Dealer Casino, Skill and Virtual games, Financial Betting and Fantasy Sports at Sydney Exhibition Centre on 12 - 14 August 2014.

As sponsors and new exhibitors, BetConstruct are very proud to be attending AGE 2014. BetConstruct recognizes that this is one of the most important Gaming expos in the world and is very much looking forward to developing new relationships and meeting influential executives from the Australasian gaming industry.

an online, land-based Sportsbook, Poker, RNG and Live Dealer Casino, Skill and Virtual games, Financial Betting and Fantasy Sports. It will also be very interesting to speak with regulators and local operators so that they can gain more understanding of the regulatory framework and operator requirements.

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BUSINESSMAG • ISSUE JULY/AUGUST 2014

BetConstruct do not currently have any partners in Australia but is very interested in learning more about the betting landscape and regulatory framework. This is very much a fact finding mission for BetConstruct, they position themselves as a global supplier and are keen to share their expertise with partners around the world.

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US GAMING NEWS

Online gambling in NJ estimates slashed again

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ew Jersey has seen the slide of land based casinos over recent years and the fledgling online gambling industry only launched late last year is already seeing signs of decline.

In a recent report from credit ratings company Fitch Ratings they have said that the estimates of winnings for online companies operating in the state have been slashed from its previous estimate of $200 million to $300 million for the full

year to its new estimate of just $120 million to $150 million.

“Several factors we had expected to drive sequential growth have not materialized, including a ramp-up in players’ awareness of online gaming as a result of operators’ marketing efforts,” Fitch Ratings wrote to investors. “The number of online gaming accounts increasing 8 percent in June to 378,564 from 351,136 in May, and tripling since December, has not translated into increased

revenue. Other factors expected to drive growth include technology improvements, users’ adaption to the available payment methods and the rollout of mobile products.”

The announcement comes after the state online gambling business has seen takings of just $63 million for the current year. June gambling figures for the state were again disappointing with just $9.51 million compared to $10.47 million in May, representing a fall of 9.17%.

More casinos will close warns Trump Trump has warned that the current crop of casino closures in Atlantic City is not the last and could become much worse not just in Atlantic City but in Philadelphia and Pennsylvania also.

The Trump Plaza which is set to close in September with the loss of over 1,500 jobs, was once owned by the property tycoon along with

Trump Marina and The Taj Mahal said the over saturation of casinos would mean more casino closures for certain.

“I’m very sad for Atlantic City. I spent many years there, as you know,” Trump said from New York City less than two hours after Trump Plaza employees were issued layoff notices. “But I have not been involved for many years.

“I have nothing to do” with Trump

Plaza’s closing, he said. “Different people own it.”

“I feel badly, but Atlantic City is a different place now,” Trump said.

“What’s happening in Atlantic City is happening all over the country.

The United States is becoming one big casino.

“Atlantic City is getting clobbered.

Seventy-five percent of the casinos in Atlantic City are bankrupt.”

BUSINESSMAG • ISSUE JULY/AUGUST 2014

In a recent interview Donald

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US GAMING NEWS

California to have new online poker bill by end of year

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o California will not see online poker in the state this year, not legal anyhow with the two bills that were presented for consideration to the legislator being pulled. However there is expected a new bill to surface in December

by Senator Jones-Sawyer, that is thought to bring compromise to all parties involved in the process of legalizing online poker.

One of those compromises will be allowing the newly acquired PokerStars now owned by Amaya Gaming to enter the online poker industry in the Golden State. The local partner in California for PokerStars the Morongo Band of Mission Indians that said in a statement from Chairman Robert Martin, “Clearly the issues surrounding the latest bills that sought to unconstitutionally limit competition, place prohibitions on race tracks, & rewrite longstanding, successful state policy regarding California’s oversight of gaming proved insurmountable for this session.

by the state regulator on Amaya’s

“We will continue to work with our partners, legislators, state regulators & other California tribes on developing future iPoker legislation that meets constitutional tests & provides much needed consumer protections to California’s two million online poker players.” Martin finished by saying.

All eyes now will be towards New Jersey and Amaya Gaming’s attempt to get PokerStars into the online poker business there, a decision

application for consideration of PokerStars entry is expected as soon as this week and should the online poker giant be allowed to enter New Jersey the likely hood that the same would happen in California when a new bill is presented there later this year would increase and lawmakers have an easier time allowing for PokerStars to take part in online gambling there.

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ew Jersey casinos and racetracks will not be allowed to have sports betting after state governor Chris Christie vetoed legislation that would bypass a federal law banning betting on professional and college sports in New Jersey. This follows the supreme court ruling that it would not take up the state’s case of sup-

porting sports betting and in so doing enforces the ban in the state.

While Christie said he mounted “a spirited legal effort” to try to change the law, he said he was unwilling to go along with an attempt to bypass the court.

“Ignoring federal law, rather than

working to reform federal standards, is counter to our democratic traditions and inconsistent with the Constitutional values I have sworn to defend and protect,” he wrote in a message regarding the veto.

The governor always seemed indifferent in supporting the bill that was passed in the state legislator back in June

BUSINESSMAG • ISSUE JULY/AUGUST 2014

Christie vetoes sports betting bill

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EUROPEAN GAMING NEWS

Southend prepare for new casino opening

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rosvenor Casinos and Mecca Bingo are only a few weeks away from opening their latest development on the seafront at Southend. The £6 million development is due to open on the 18th September below the Park Inn Palace Hotel.

The new casino will have state of the art 100-seat poker room available for private functions and tuition, plus slot machines and a VIP room for high rollers. Along with all the usual roulette and blackjack tables.

Tom Docherty, the casino’s general manager, said: “Southend is a popular seaside town with a long-established association with entertainment and innovation, making it ideal.

We’re confident our new casino will

attract new and existing gamers into Southend, with its state-of-theart facilities, and further increase interest in the area as a key tourist destination.

“It will be a stylish new venue, where you can enjoy the thrill of gaming and live sports around the

clock, and also support employment in the area.”

He added the casino would be “a new and exciting venue, perfect for serious gamers or those just looking for a fun, alternative night out.”

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CCORDING to government spokesman Nicos Christodoulides Cyprus will select and license a casino operator for the countries first ever casino resort.

the Integrated Resort Casino in less than a year from today,” Christodoulides said in a statement.

In a statement from Mr Christodoulides the government have outlines some provisions now for the license which will last 30 years with the chosen operator retaining exclusivity for 15 years. The government will collect a 15% tax on gross revenues.

The spokesman added that it was the first time procedures of this type were moving at such a fast pace.

“Procedures are going ahead fast and the government’s aim is to select and license the operator of

Along with the casino, the resort will include restaurants and other recreation areas. The location will be decided by the operator.

The casino will allowed be open 24 hours a day, seven days a week and only persons 21 and above will be allowed to gamble.

The operation will be regulated by a national gaming authority.

BUSINESSMAG • ISSUE JULY/AUGUST 2014

Cyprus casino resort moving at fast pace

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GAMING NEWS

Gibraltar praised in online gambling report Svenska Spel wants online license Svenska Spel is attempting to become the only licensed online casino operator in Sweden should their request be granted by the government.

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new report by the European Commission regarding the protection for online gamblers and the prevention of underage gambling has praised Gibraltar for their existing regulations and principles.

Minister for Gaming, Albert Isola MP said: “These principles reflect the existing regulations in Gibraltar for ensuring online gaming services

are safe and reliable. For nearly two decades Gibraltar has helped set the standards for online gaming and we will continue to do so.

It is pleasing to see among the Recommendations so much of what we already do, and that Gibraltar’s own proposal for national self-exclusion registers has been adopted by the Commission.”

Currently Gibraltar

licenses only 30 online gambling operators, however many of them are the largest within the online gambling sector.

“Gibraltar licence holders are the ‘top drawer’ of the remote gambling industry and much of what is recommended is already firmly in place here.”

Gibraltar Gambling Commissioner Phill Brear said.

CEO, Lennart Käll said in a recent interview, “Online casino games have taken approximately seven percent of the gaming market in Sweden, and the play is today only [available] from unregulated gambling companies that are outside the Swedish authorities’ licensing and control.”

“This demand could be channeled to an operator where social protection interests are put over profit,” Käll continued.

Many observers believe the move by the company is prompted by the falling revenues Svenska Spel is suffering

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nline gambling will arrive in Portugal by the end of this year as the national government gave approval for a regulated online gambling market to be established in the country.

Portugal’s Secretary of State Adolfo Mesquita Nunes, said in June that the country would have regulated online gambling by the end of 2014 and so it looks set to be.

The parliament vote to approve online gambling now

means that there is a 180 day window for law makers to construct a bill for online gambling along with tax rates, license application process and penalties for unlicensed operators offering their services in the country.

However European observers question the ability of the government officials to serve all the necessary legislation in time to make the end of year timeline and most believe that the first quarter of 2015 is more a realistic target.

BUSINESSMAG • ISSUE JULY/AUGUST 2014

Portugal online gambling by end of 2014

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HEADLINES

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$2.6 billion spent in online gambling by US players in 2012

Golden Nugget receive NJ online license

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Secret investor in Ladbrokes as speculation mounts

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EUROPEAN GAMING NEWS

European Commission release online gambling recommendations

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he European Commission have released a recommendation towards online gambling services which encourages member states to ensure a high level of protection for customers and minors with adopting strong principles for responsible advertising and sponsorships.

•Basic information requirements for gambling websites, in particular to ensure that consumers are provided with sufficient information to understand the risks related to gambling. Commercial communication (advertising and sponsorship) should be carried out in a responsible way.

•Member States should ensure that minors are not able to gamble online, and that rules are in place

to minimise their contact with gambling, including through advertising or promotion of gambling services whether broadcast or displayed.

•There should be a registration process to open a player account so that consumers have to provide details of age and identity for verification by the operators. This should also enable operators to keep track of player behaviour and raise the alarm if necessary.

•Ongoing support should be available to players to prevent gambling-related problems, by equipping them with tools to keep gambling under control: possibilities to set spending limits during the registration process, to get information alerts about winnings and losses whilst playing, and to take time out from gambling.

•Players should have access to helplines they can call for assistance about their gambling behaviour, and they should be able to easily exclude themselves from gambling websites.

•Advertising and sponsorship of online gambling services should be more socially responsible and transparent. For example, it should not make unfounded statements about chances of winning, exert pressure to gamble, or suggest that gambling resolves social, professional, personal or financial problems.

•Member States should ensure that training is provided to employees of online gambling operators interacting with players to ensure they understand problem gambling issues and are able to liaise with the players appropriately.

BUSINESSMAG • ISSUE JULY/AUGUST 2014

“Today’s Recommendation delivers one of the core elements of the Commission’s 2012 action plan on online gambling services” said Vice-President Michel Barnier, responsible for Internal Market and Services.”We must better protect all citizens, and in particular our children, from the risks associated with gambling. We now look to the Member States, but also to online gambling operators, to match our ambition for a high level of consumer protection throughout the EU in this fast growing digital sector.”

The main areas that the Commission have set out for member states to follow are:

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InfinityGaming • ISSUE JULY/AUGUST 2014

GAMING NEWS

Sky City profits fall but Echo

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oth Sky City & Echo Entertainment, casino operators in Australia announced their full year results with some varying degrees of success.

Sky City said their profits had fallen by 22.6% on the back of the strengthening New Zealand dollar and the increasing costs of redeveloping its Adelaide Casino.

The chief executive of Sky City Nigel Morrison said that its Hamilton business has not been performing well, but Auckland has been a stand-out.

Turnover is the first half of the year stood at $2.6 billion, but the second half rose to $3.9 billion. The company also announced that the new Auckland international convention centre that they are awaiting permission to build could start as early as mid-2015. The plans also include a five star hotel next to the convention

centre, creating nearly 2,000 jobs and once opened a permanent 900 jobs.

by posting a 27% rise in profits to $106.3 million, largely due to higher revenues and cost cutting measures.

It is hoped that the new development will attract more than 33,000 new international visitors.

Chief executive Matt Bekier said Echo has started the 2014/15 year with the same strong momentum.

Over at Echo Entertainment, their full year results fared much better and beat analyst’s expectations

“To me, the second half is the new normal,” he said.

“We’re not giving an earnings prediction but in terms of the initiatives and the momentum, there’s no reason why that number should go backwards.”

The Star enjoyed a 6.8% rise in gross revenues to $1.3 billion in 2013/14.

Revenues from its high roller business grew by nearly 7% to $472 million, and The Star’s private gaming rooms achieved stronger growth as Echo’s loyalty program, launched about 15 months ago, gained traction.

BUSINESSMAG • ISSUE JULY/AUGUST 2014

Their Auckland casino is attracting more VIP players from Asia helping to boost profits.

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T

he winner is, surprise surprise, another Nokia.

The 1110, launched in 2005, sold a staggering 250 million.

01

Nokia1110 (built 2005)

World’s most Popular Mobiles...

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02

A

chunky end-of millenium favourite, 1999’s Nokia 3210 sold 160 million.

Nokia 3210 (built in 1999) lso selling an estimated 150 million was Nokia’s 1200, launched in 2007.

More over can you name the most popular mobiles ever made?

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T

he Nokia 3310 comes in fourth and showed the strength of the Nokia mobiles at the time this war released in 2000 selling 136 million units

InfinityGaming • ISSUE JULY/AUGUST 2014

oming in at number 4 it is the Nokia 5230 which sold jusr less than150 million units, the device offered music on your mobile for the first time!

Mtilina quem haedo, ne in des rei pessme Nokia 1200 (built 2007) moli ferivir lost omnotemena.

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04

Nokia 5230 (built in 2010)

05

Nokia 3310 (built in 2000)

R

ounding off the top 6 mobiles and all Nokia’s is the 2600 released in 2004 and selling 135 million units worldwide.

06

Nokia 2600 (built in 2004)

O

nce again Nokia comes back in the top 10 with the Nokia 1600, released in 2006 and selling a total of 130 million units in its time.

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Nokia 1600 (built in 2006)

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otorola highest selling mobile of all time the RAZR V3 released in 2004 and went on to sell a total of 130 million units.

07

Motorola RAZR V3 (built in 2004)

T

he power of Nokia at the time with another entry at nine with the Nokia 1208 selling some 100 million units around the world.

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Mtilina quem haedo, ne in des rei pessme Nokia 1208 (built in 2007) moli ferivir lost omnotemena.

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t was the age of Nokia with another model this time the 5130 released in 2007 and selling 65 million units when it went on sale.

BUSINESSMAG • ISSUE JULY/AUGUST 2014

ounding off the top 10 again another Nokia, the 6010 that when released in 2004 sold some 75 million handsets.

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10

Nokia 6010 (built in 2004)

11

Nokia 5130 (built in 2007)

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S

urprised to see iPhone only at number twelve?

The mobile phone was released in 2011 and has sold 60 million handsets since, will there ever be another like the Nokia 1110?

12

iPhone 4S ( built in 2011)

W

ho remebers this classic flip phone? The StarTAC when released in 1996 sold a few short of 60 million handsets.

14

Motorola StarTAC (built 1996)

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otorola second best selling mobile is the C200 released in 2000 and selling just short of 60 million units worldwide.

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Motorola C200 ( built in 2003)

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olourful and cool when released selling 50 million units in 2003, one of the first with a colour screen, wow!

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Mtilina quem haedo, ne in des rei pessme Nokia 3100 (built in 2003) moli ferivir lost omnotemena.

InfinityGaming • ISSUE JULY/AUGUST 2014

Was your favourite Mobile there?

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Amazing to think the changes and advancements made in the mobile phone sector over the last 15 years.

INFORMATION

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

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

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BUSINESSMAG • ISSUE JULY/AUGUST 2014

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

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InfinityGaming • ISSUE JULY/AUGUST 2014

GAMING NEWS

Rank announce tough full year results Caesars Q2 results show losses widen further

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Grosvenor casino’s reported a total revenue lift of 30% to £391.2m, driven by a £107.2m revenue contribution from the newly acquired Gala casino deal, pushing a 20% rise in operating profit to £56.8m.

Mecca Bingo’s revenue decreased 3% to £288.2m as customer visits decreased during the year. Lower revenues and higher digital IT costs resulted in total brand profit falling 16% to £37m.

Now with the impact of the Gala casino deal taking effect that helped drive group total revenues up by 13% to £707.7m with profits rising by 7% to £116m.

Rank said cost-cutting and tighter capital spending had resulted in a 21% rise in second half operating profit against a tough first half.

Chief executive Henry Birch said Rank was well-placed for growth after a government cut in bingo duty, major capital investment programmes planned at its Nottingham, Bournemouth and Luton casinos and full year benefits from the £8.9m investment in new products in the acquired casinos.

“In the short term, the introduction of a digital point of consumption tax will impact performance, but our strong brands and market leading positions ensure that the group is well placed and provide long-term opportunities.”

Caesars Entertainment announced its second

quarter results with losses widening in the quarter to $466.4 million compared to $212.2 million in the same quarter of 2013.

Revenues were up for the casino giant by 3% to $2.18 billion, with increases coming from online and social gambling segments of the company’s business, but was held back with greater revenue climbs by poor casino revenues.

CEO Gary Loveman said Las Vegas spending and visitation trends are encouraging. The company recorded modest increases of 2% and 7% in slot and table volumes, respectively, while lodging revenues for Las Vegas increased by 5%.

However a 1.9% decline in casino revenues, largely coming from low volume and visitation in Atlantic City and other regional markets. Loveman said the company hopes construction of a meeting facility near Harrah’s in Atlantic City will help diversify the economy there.

In closing Loveman said, “As we look ahead, we are excited about further expanding and enhancing our network with the opening of Horseshoe Baltimore and the potential development of an integrated resort in South Korea. We believe the advances we are making across the enterprise coupled with on going capital structure initiatives aimed at reducing leverage will produce a positive impact on our business.

BUSINESSMAG • ISSUE JULY/AUGUST 2014

he Rank Group said it was a tough year with strong competition after announcing the bingo and casino operators full year results. Indeed the UK’s largest casino operator said that revenues were down from the same time last year, with like-for-like revenue from Grosvenor venues dropping by 4% however the firms digital business revenues rose by 38%. Mecca like-for-like venue revenue fell 5% and online revenue dipped 4%.

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