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HEADLINES JAPAN TO LEGALISE CASINOS IN 2013

HEADLINES SHELDON ADELSON ONLINE GAMBLING 2FOOLS GOLD”

HEADLINES 7TH INTERNATIONAL GAMING AWARDS LAUNCHED

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www.gaming-awards.com | ISSUE JUNE2013

NEW US ONLINE BILL

Congress gets another chance

HOLLAND CASINO CEO Dick Flink resigns

MELCO TO TAKE PART IN BARCELONA

Asian gaming giant invited to Spain

BERMUDA TO VOTE

by Khu ha n

d

Island paradise to decide on casinos

FOCUS

7th International Gaming Awards Launched

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contents InfinityGaming

EDITOR’S LETTER

3 Interview Neil Erlick 4 Japan to have casinos 9 Train the Trainer 12 Jersey ban 15 New Google Glass EDITOR LETTER

Welcome to the June edition

We spaek to Neil Erlick from Optimal

Martin R Baird Article

One place you will not be going

FEATURES

19 Sheldon Adelson 08 GAMING AWARDS Irish Gaming update 22 Melco going to Spain 25 28 Who’s The Boss Lessons from the 32 Insurance Industry Making Money from 38 Apps The Conversion Two 42 Step

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Online gambling is “fools gold”

Categories launched

JJ Woods article

MCE invited to Barcelona project

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Good bosses and skills needed

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Ellen Learmonth Article

04

Neil ErlickOptimal Payments

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EDITOR’S LETTER Lana Thompson - Chief Editor

by

InfinityGaming CONTRIBUTING WRITERS Martin R. Baird Rohin Malhotra Ellen Learmonth J.J. Woods

Welcome to the June edition of the Infinity Gaming Magazine What a wonderful and buzzing month of the year with Ascot, Wimbledon, picnics on the grass and a lot of parties in town. We do hope that weather will be kind to all of us and our hats? Talking about classy events in town, we are delighted to tell you that International Gaming Awards is open for nominations now and you will be hearing more exciting news from us soon in the coming weeks. I would like to take this opportunity to thank our last year Judges , sponsors and supporters , as always, it would not be possible without you. We bring some great stories and opinions from our contributors JJ woods, Ellen Learmonth, Professor Nelson Rose, Martin Baird and Interview with industry leader Neil

Erlick Enjoy your reading and summer parties! Lana

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 Business Partnerships Svetlana@gaming-awards.com JOIN US

BUSINESSMAG • ISSUE JUNE 2013

EDITORS NOTES

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FEATURE ARTICLE

– Interview with Neil Erlick EVP Business Development, Optimal Payments

Neil Erlick has been a key member of the Optimal senior management team since 2000 and has more than 13 years’ experience in payment solutions for online gaming operators. A seasoned industry executive with an extensive understanding of this market, Neil has been responsible for strategic development and marketing of online payment solutions for large-scale online gaming operators. Using his experience and expertise, he assists them in implementing comprehensive payment solutions that include compliant solutions for online payments, gateway services, and risk management.

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he Infinity Gaming Magazine sits down with Neil Erlick to find out what the latest is with Optimal Payments both stateside, Europe and Asia.

Q: Thank you for your time today, let us start the interview with the news on Optimal Payments/Neteller sponsoring the Italian Poker Tour, how did that come about and why is it important for Optimal Payments/ NETELLER?

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NE: NETELLER is one of the most popular payment methods in the world of online gambling; and sponsoring the IPT event is a way for us to celebrate our commitment to the online poker community. Our participation includes sponsoring the first leg of the new IPT season which ended on June 17 in San Marino, as well as all five legs through to the tournament’s conclusion in December.

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We have two promotional initiatives that targets players taking part in the IPT Main Event. The first initiative is for players who already have a NETELLER account, or who plan to activate one for the tournament. By wearing a NETELLER patch during the event, they will have access to unique promotional offers and the highest-placed NETELLER customer will be awarded a buy-in to the

next IPT. The second initiative will reward the unluckiest player in the Main Event, the so-called “bubble boy”, who is the last player excluded from the prize zone and that player will receive a cheque for €1000 from NETELLER. This IPT sponsorship allows Optimal to showcase how our NETELLER eWallet enables online poker players to fund their accounts with more than 100+ payment options and how our Net+ Prepaid MasterCard®, which is linked directly to the eWallet, offers players instant access to their money and can be used anywhere MasterCard is accepted. In fact, our Net+ card is so popular it was voted Best Prepaid Card by consumer in the 5th Edition of the PrePaid365 Awards. Q: How are Optimal Payments progressing at present in such a competitive market? NE: Optimal has had an incredibility successful year offering services to the online gaming market as well as traditional e-commerce merchants: company revenues have been growing our business at a double-digit rate; we have been continuously expanding our penetration of various markets around the world; nd introducing new services. The NETELLER eWallet and


– Optimal Payments update on business

Q: It would be impossible to sit down and talk and not mention the U.S. situation, is Optimal Payments involved in either Nevada at present and New Jersey when the state goes live? NE: Optimal is very involved in the emerging regulated online gaming market in the U.S. There has been a flurry of activity since December 2012 when the U. S. Department of Justice clarified its stance on Internet gaming and opened the doors for intrastate poker to become a reality in the United States. Since then each state has been evaluating offering online gaming to its residents and those who are choosing to do so have initiated the process of developing licensing and operating regulations. Some states, like Delaware, have chosen to maintain online gaming under state control, while other states, including Nevada and New Jersey, are opening their market local licensed gaming operators. Optimal plans to leverage the experience it has providing online payment solutions to governmentrun online gaming sites in Canada

and public listed regulated operators in Europe to newly licensed operators in the U.S. We have a wealth of experience and services that allow operators to seamlessly add payment processing and fraud management tools to their gaming platforms. Q: Does working state by state create any difficulties for Optimal Payments, should this happen further without federal legislation? NE: Having to work on a state-bystate basis does have its challenges, as each state will implement its own regulatory framework and compliance requirements for operators. This will no doubt add to each operator’s development infrastructure and operational costs. At the end of the day all online gaming operators will require similar services including: payment processing for player account funding and disbursements;

Each state has been evaluating offering online gaming to its residents and those who are choosing to do so have initiated the process of developing licensing and operating regulations. Some stares like delaware, have chosen to maintain online gaming under state control.”

BUSINESSMAG • ISSUE JUNE 2013

NETBANX online payment gateway can provide complete end-to-end payment solutions that are tailored specifically to industry sectors and/ or merchant or gaming operator’s business model. Being a true global Payment Service Provider, we can provide services across many jurisdictions. Optimal also strives to be at the forefront of the payments industry and are constantly adding innovative services that bring value to our clients.

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(Continued)

Neil Erlick Interview

KYC capabilities including age and residency verification; player location verification; and fraud management tools. These are all services Optimal can offer through our payment gateway providing a fully integrated player experience. We have a very well defined process that allows us to develop and implement custom solutions that need the exact needs of the gaming operators.

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Q: Personally do you see the situation in the US where states legislate for online gambling as opposed to a federal law continue?

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NE: At least for the next several years, we believe that online gaming in the U.S. will be governed by State legislature and regulated by State oversight. The “Internet Gambling Regulation, Enforcement, and Consumer Protection Act of 2013” which was recently introduced by House representative Peter King seeks to create the Office of Internet Gambling Oversight within the Treasury Department. We believe that a Federal bill that legalizes all forms of Internet gaming will have a very difficult time advancing in the House and Senate. The expansion of gaming in the U.S. is a very touchy subject and we believe that in order to pass a Federal bill it would have to be limited, at least initially, to poker only. Therefore for the next 3-5 years individual states, with an appetite for increased jobs and tax revenue, will continue to pass

intra-state legislation. This means that each State will develop its own licensing requirements, regulatory compliance, and taxation laws. Q: Has the company seen an increase in new online operators recently, what is the trend in new operations as the company sees it? NE: The trends we see vary by country. In Canada, it is the provincial governments that run online gaming sites, including British Columbia, Manitoba, and Quebec. Others, such as Ontario and the Atlantic provinces, have plans to launch site by 2014. In the U.S., the new entrants include state

governments, land-based casino operators, tribes, and companies operating internationally expanding to the U.S. There is definitely a trend of expertise from the European operators being leveraged in the U.S. by either association with U.S. based companies or expanding their operation in the U.S. There is also an important trend emerging that can significantly change the market dynamics for online gaming. Recently in Nevada, and expected soon in New Jersey, the state passed legislation that allows for the formation of “compacts”. This

would allow for interstate gaming with other states and the ability for states to form alliances with other jurisdictions—including tribal and foreign to provide online gaming. We believe this will have an impact on the marketplace dynamics as smaller states can align resources with larger states to capitalize on an estimated $9 billion online gaming market in the U.S. Q: If you were to offer an insight to the US, where would you say online gambling regulation happening next at a state level, which state is next to follow Nevada and New Jersey? NE: Since the Department of Justice ruling authorizing some Internet gaming and lotteries, California, Delaware, Hawaii, Iowa, Illinois, Mississippi, and New Jersey have all introduced legislation allowing online gaming. Other states, including Massachusetts, are considering laws of their own. The effect of the compacts also remains to be seen as various alliances begin to emerge. Q: What makes Optimal Payments such a strong brand and why do so many operators use your services? NE: Experience and trust drive the


– Optimal Payments update on business

Q: Last year you signed an agreement with Caesars Interactive how is that progressing? NE: We are proud to be associated with and trusted by a leading brand like Caesars. Our relationship with Caesars Interactive is progressing very well. The company plans to be operating online real-money poker in Nevada this summer and realmoney poker and casino games in New Jersey by the end of 2013 and beginning of 2014. Optimal will supply CIE with gateway services related to payment processing for player account funding and dis-

bursements, fraud management, and related services. Q: How is 2013 looking for the company in terms of new business? NE: Optimal ended its fiscal 2012 year with double-digit growth for both NETELLER and NETBANX services, and had very strong performance in first four months of 2013. We have had excellent top line performance and strong growth in profitability. Group revenues grew 40% to $179.1 million and EBITDA rose 58% to $27.6 million and we forecast to be ahead of expectations at year end. Our success is driven by growth in the traditional e-commerce market as well as online gaming, which we see as an important and high-growth market segment. Q: Finally Neil where would you say growth for the company will come in the next year, will it be all US or are there other sectors? NE: For our e-commerce business, we expect growth

on a global scale. This growth stems from: increased consumer adoption of purchasing online, businesses adding e-commerce sites as another sales channel, and the high penetration and use of smartphones fueling mobile purchasing applications. As a global payments solutions provider, these trends drive demand for our payment gateway, acquiring and fraud management solutions. For online gaming, we view the U.S. as an enormous market opportunity. An emerging market with long-term growth potential, Optimal will be able to leverage our long-time presence and experience in the European online gaming market. Optimal’s recent wins in both Canada and the U.S. firmly establish the company as leaders in the market.

BUSINESSMAG • ISSUE JUNE 2013

Optimal brand. We offer payment services for both operators and players. The company has been a pioneer in online payments since 1996 and has a long history of providing services to regulated online gaming markets around the world, and today is poised to be a key player in the U.S. market. We continuously evolve our NETELLER and NETBANX services to meet the emerging needs of the industry. Online gaming operators are seeking single integration payment solutions that help them deliver enhanced player experience, increase revenues, reduce operational costs, and minimize their exposure and liability to fraud. Optimal delivers on all of these requirements by offering direct integrations to major player account management (PAM) platforms; KYC identification verification for establishing residency and age of majority; location verification for tracking the location of the player at time of gaming activities; and fraud management of payments and player accounts.

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The 7th International Gaming Awards Categories

Click Here to Nominate •Casino/Integrated Resort of the Year •Casino Operator (Europe, Americas, Australia & Asia) •Casino VIP Room of the Year •Corporate Services Supplier of the Year •iGaming Software Supplier •Gaming Industry Fair Play Award •Industry Publication/Media Service of the Year •Mobile Operator of the Year •Online Bingo Operator of the Year •Online Casino Operator of the Year •Online Poker Operator of the Year •Online Sportsbook Operator of the Year •Payment Solutions Provider Company of the Year •Socially Responsible Operator of the Year Land Based •Socially Responsible Operator of the Year Online •Slot Manufacturer Online or Land Based •Slots Operator of the Year (Online) •Technology Provider/Supplier •Traditional Casino Equipment Supplier •Outstanding Contribution Award

“We are absolutely delighted to be honoured by the International Gaming Awards” - Malcolm Graham CEO PKR “The International Gaming Awards is a truly prestigious event” - Jim Ryan, former Co-CEO Bwin.Party “This is such a special moment and I know all at Sands in Vegas will be over the moon” - SVP Sands “What the IGA is doing is really smart and sure the event will only get stronger and stronger each year” - Mitch Garber CEO Caesars Interactive “My father has been honoured with one award, however I have won three this evening and Melco Crown Entertainment will be delighted when I go home” - Lawrence Ho CEO Melco Crown Entertainment Macau


GAMING NEWS

Japan to have gambling legislation by end of 2013

F

ollowing reports previously on Japan looking to legalise gambling within their borders, it seems almost certain that the newly installed government will move steadily forward by the end of the year to legislate for gambling in Japan. A gambling bill is to be submitted to the Japanese parliament later this year that, if passed as expected it will, will pave the way for mega resorts to be built. “Japan may be the only developed country without casinos. But we are sprinting to the finish line,” Takeshi Iwaya a lawmaker in Japan told AFP in an interview. The country has had many rumours over the years that gambling would be legalized soon, but with the current government looking to

encourage stimulus in the economy, they see gambling as one way to do this. Japan has the potential to be the biggest gambling destination outside of Macau, with projections on turnover once the industry is fully operational of some $100 billion annually. With just two casinos in Tokyo and one in Osaka, which is believed to be the first phase of gambling in Japan should it happen, expected to raise incomes of $10 billion alone. Pro gambling supporters point to Singapore for inspiration as just two casino resorts there raise a combined revenue of about US$5.3 billion in 2012.

With Japan having a population of over 120 million residents, many pushing for legalizing gambling believe this would encourage nationals to stay at home and spend their money in the countries casinos, as opposed to travelling elsewhere.

DCMS “not” closing

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umours that the Department for Culture Media and Sport which is the department responsible for gambling is being closed and have its responsibilities given to various other divisions within the government have been denied.

A report published last year by the Institute of Economic Affairs claimed that shutting down the DCMS “could save around £1.6 billion”. A spokeswoman for the DCMS said: “Unsurprisingly, Dan Jarvis doesn’t know what he’s talking about. There is absolutely no truth in these rumours of the DCMS closing. The next government spending review will happen on the 26th June and the fate of the DCMS will be made clear when budgets are announced soon after.

BUSINESSMAG • ISSUE JUNE 2013

A spokeswoman for the department said there is “absolutely no truth” in comments made by shadow culture minister Dan Jarvis which claim the department is considering shutting the DCMS to save money. According to reports Jarvis said conversations about the future of the department in its current form were “undoubtedly” taking place.

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InfinityGaming • ISSUE JULNE2013


GAMING NEWS

New US online gambling bill hits Congress

The latest attempt to legalise online gambling on a federal level was introduced on Thursday 6th June. This is the latest attempt to navigate the country into a more stable and uniformed platform to operate and control online gambling by Congressman King. Congress saw an attempt last year with another online gambling bill, but partisan disagreement finally doomed it without even seeing the light of the Congress floor and that led to a number of states passing their own laws introducing online gambling. With now Nevada, New Jersey and Delaware already legalising some kind of online gambling, and legislatures in other states are weighing the issue for themselves. King says his measure, called the Internet Gambling Regulation, Consumer Protection and Enforcement Act of 2013, would allow states and players to navigate the world of online betting with confidence. “A common federal standard will ensure strong protections for consumers, protect against problem and underage gambling, and make it easier for businesses, players, lawmakers and regulators to navigate and freely participate,” he said in a statement. The bill measures say it would create an office of gambling oversight in the Treasury Department, to impose safeguards against underage and compulsive gambling, and facilitate interstate online wagering. Also as reported previously by the Post it would also allow individual states to continue to ban the online gambling within their borders. In 2012 there was huge hope of both Senator Harry Reid and Senator Jon Kyl, pushing for a federal law to legalize online poker but eventually gave up before even introducing the legislation. “We spent the last four years working very, very hard to get in a position to support such legislation if it was introduced,” said American Gaming Association CEO Frank Fahrenkopf. “So we’re now left in a situation where Kyl, who was very important in the process, has retired, and you’ve got a multitude of states starting to pass legislation, so we think the urgency is even more important now.”

Aristocrat granted Nevada License

Aristocrat Technologies have been granted an interactive gaming license from the Nevada Gaming Commission. The decision to grant Aristocrat was made by the Nevada Gaming Control Board in a unanimous recommendation. The gaming provider company is now allowed to offer online poker software and technology to Nevada based operators that have been licensed by the Nevada Gaming Control Board. Aristocrat Technologies President Atul Bali said, “This latest news is a very important milestone for two reasons. First, it further validates our aggressive online strategic vision. Second, being licensed to provide our interactive gaming services in Nevada, a state that is leading the online gaming charge in the U.S, puts us in a very strong position for future activity.”

BUSINESSMAG • ISSUE JUNE 2013

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new federal online gambling bill has been introduced to congress by New York Republican Congressman Peter King.

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ARTICLE

Casino Train the Trainer Program Has Unexpected Benefit It’s Life Changing Our feature writer Martin Baird looks at Trainer programs for our June edition, could they be “life changing?” If you are considering trainer programs or interested about what they are all about, then read on.

By Martin R. Baird

H

ave you ever had a person you work with thank you because you changed their life? I mean walk right up and pour out a heart-felt thank you? If you did, how did it make you feel? If you haven’t had that experience, would you want to?

train a small group of the casino team on how to do their own guest service training for the rest of the staff. I thought that sounded like great fun, even though we knew some of the people we would work with were not fluent in English. We love a challenge.

There is a book I really like titled “Start With Why.” The author explains that people don’t want to know what you do; they want to know why you do it. If they understand why, they can connect with the product or service you offer and will want to purchase it.

The casino’s management selected one of the participants not because he was a valued employee, but because they wanted to punish him for the terrible service he provided. I guess they thought he would hate the training. It was a five-day session and by the end of the second day, that employee was the best trainer in the group. He stayed that way to the very end! He was an amazing trainer.

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Our company’s “why” is very simple. We want to positively transform lives and have fun doing it! It’s not easy being away from my amazing family on business, but I do it because making a real difference in people’s lives is so enjoyable.

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When we are selected by a casino to do our Train the Trainer (TTT) program, that is when I know I’ll have the opportunity to change lives. Of all the wonderful opportunities I have through my company, TTT is one of my favorites by far because I love the outcome. I didn’t study to cure cancer or save lives, but positively changing a life is amazing to me. Several years ago, we were honored when one of the premier consulting companies in the world selected us to work with a casino in Europe. We were asked to

On the final day, tears welled in his eyes and he told the group something astonishing: “This week of training has changed my life.” His wife and children could see a difference in him and so could his co-workers, he said. That was a “moment” for me that I will never forget. To this day, when I think of it, I can’t help but smile. We did the same TTT program with a casino in the northwestern United States and worked with a fantastic group of people. I enjoyed each day with them, and it was amazing to see them grow and push each other to excel.


ARTICLE

(Continued) Again on the last day, one of the executives who participated in the training came up to me and said something astounding: “I want you to know that I wanted us to use Disney for this training, but I was voted down. After this week, I’m thankful that we selected you!” That was what I needed to hear. When you are compared to a recognized world leader in service and training and someone says you are better…that is powerful.

TTT is an intensive look at learning as well as customer service. During the training, they may hear themselves and others give presentations on customer service 50 to 100 times. Believe me, after hearing it and saying it that many times, you thoroughly understand service and why it’s important. Another part that is so powerful is the bond everyone shares. They see each other struggle like never before and they share with each other in an open way. It’s an emotionally challenging week. “Life changing” doesn’t come easily or without frustrations. Those who grow the most from the session are the ones who often struggle and risk the most. I’m no guru, but I do know this – people who give 100 percent of themselves in Train the Trainer come out a new person and it’s amazing. One of the other key points is that they get a whole new perspective on training. Most people think of training as a lecture by a so-called trainer who “shows up and throws up” all the information. That is the opposite of TTT. We facilitate learning and push participants to do just that – participate and actively learn. Thus, there are no lectures for

hours and hours. This is not an easy concept for most people who have been exposed to a traditional education system. Train the Trainer is an amazing experience and, for the sake of full disclosure, it has changed my life, too! When I’m having a less than wonderful day, I can think of these great people and it makes me smile and remember why I do what I do. I have the opportunity to positively transform lives and have fun doing it.

ABOUT THE AUTHOR: Martin R. Baird is chief executive officer of Robinson & Associates, Inc., a Boise, Idaho-based consulting firm to the global gaming industry that is dedicated to helping casinos improve their guest service so they can compete and generate future growth and profitability. Robinson & Associates is the leader in casino guest experience, management and improvement. For more information, visit the company’s Web sites at www. 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 JUNE 2013

You may be wondering what I do in TTT that generates these kinds of comments. I’d love to take all the credit, but that would be wrong for many reasons. I facilitate the challenges the participants face (and overcome) and the journey they take during the week. But ultimately, they are the ones who learn and grow. The week pushes them beyond what they think they can do, and there is often frustration and disappointment at the end of some of the early days. The great part is that on day five, they are so thrilled with what they have accomplished that they feel energized and capable of doing anything.

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Responsible Gambling Trust’s 2014 Sahara Desert Trek

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*subject to minimum sponsorship requirements


GAMING NEWS

New Jersey ban Google Glass

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ell it is almost banned everywhere now in the US Casino world, Google Glass has now been barred in New Jersey casinos after the New Jersey Division of Gaming Enforcement issued a directive to all twelve casinos in the state that they should bar any patrons entering their premises wearing the device.

New Jersey now falls in line with Las Vegas, Pennsylvania, Ohio and Connecticut in barring the glasses in their premises. The states Divisions Director for New Jersey, David Rebuk said in a memo to casino operators; “If these eyeglasses were worn during a poker game, they could be used to broadcast a patron’s hand to a confederate or otherwise be used in a collusive manner.” “Even if the glasses had not been used for cheating … their presence at a gaming table would lead to the perception that something untoward could be occurring, thereby undermining public confidence in the integrity of gaming,” Mr Rebuk continued in his memo. In a statement issued Wednesday, Google said, “We are thinking very carefully about how we design Glass because new technology always

raises new issues.” It said its “Glass Explorer” pilot program “will ensure that our users become active participants in shaping the future of this technology”.

Nevada April revenues flat April figures for Nevada released by the Nevada Gaming Control Board have shown a small decline in revenues at 0.16%, like for like on 2012 figures. The good news shows that from the low of 2011, revenues have climbed up to over 6%. Also over the last ten months revenues have seen a rise of 2.4% across the state and on the Vegas strip the rise has been at 5%, which offers promise to operators that the worst of the economic strife is nearing an end.

Atlantic City suffered a 4% drop in revenues for May according to the latest figures from the New Jersey Division of Gaming Enforcement. However with a 4% drop there is some good news as this was the smallest decline for the year, as the previous four months saw double digit declines. “I think it’s a significant improvement,” said Tony Rodio, president and chief executive officer of Tropicana Casino and Resort. “I think the lower numbers we’ve seen since October are more of a reflection of the lasting effects of Hurricane Sandy. I think the further we put Sandy in our rear-view mirror, the more we’ll see better results.” “It’s a positive sign heading into summer,” he said. “I think we’ll start to see some positive numbers in the fourth quarter and through the early part of next year.” The Revel Casino has continued to slump following its exit from Chapter 11 bankruptcy. The newest casino in Atlantic City posted just $11.2 million in gambling revenues.

BUSINESSMAG • ISSUE JUNE 2013

Because the Google Glass is able to take photos, filming video and surfing the Internet, it is feared they could be used to count cards or even predict the fall of a roulette ball and bet on winning sections of the wheel.

Atlantic City revenues drops 4% in May

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WORLD NEWS

Century Casinos applies for Vienna License AG” makes Century the leader of the group. A decision to grant the 15-year license is expected in Q4 of this year. There is no assurance that the company will be granted the concession by the Austrian Minister of Finance. The company expects “Century Betriebs AG” to invest approx. $18 million if the casino concession will be granted. The casino would be developed in an elegant retro 1960’s style

Vietnam Casino to open in July

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he Grand – Ho Tram Strip Gaming Resort will open on the 26th July it has been announced today. The project in Vietnam will have 541 rooms, gaming facilities, entertainment space and one of the largest function centres in the country. “Extraordinary resort properties should be identified by a name and brand that reflect their quality, stature and uniqueness. After a long discussion process with stakeholders, branding experts and all departments within our organisation, we found ourselves coming full circle – all the way back to the first name that was put on the table: The

Grand,” said John Webb, The Grand – Ho Tram Strip’s vice president of Hospitality. The Grand – Ho Tram Strip was to have operated under another international brand and operator, however with the dissolution of that management contract, the owners will instead manage the property under The Grand – Ho Tram Strip name, with its 2,000-strong team recruited and trained under the direction of MGM Resorts International.

at the 450-room Hotel InterContinental, Vienna and target domestic and international tourists, business travellers, congress and convention guests as well as affluent domestic and European casino visitors. After a nine months construction period, the casino would offer approx. 300 slot machines and 25 gaming tables on a 16,000 square feet gaming floor.

Macau 13.5% revenue increase

Macau’s gambling revenue for May was up 13.5% from the same time last year, the rise was expected with a national week’s holiday occurring and also a rise in visitor numbers from mainland China in the month. Also Chinese wealthy gamblers helped the figures as the domestic economy improved. May revenue was 29.6 billion patacas ($3.7 billion), the second-strongest figure so far for 2013.

BUSINESSMAG • ISSUE JUNE 2013

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entury Casinos has announced today that the company has applied for a Casino license at Hotel InterContinental in Vienna, Austria. As one of at least four companies applying for the license, Century Casinos is managing a consortium of Austrian individuals, entrepreneurs and investors. A 26% share in and a management agreement with the newly established “Century Betriebs

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GAMING NEWS

Sheldon Adelson online gambling is “fools gold”

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as Vegas Sands Chairman, Sheldon Adelson has again stated his case strongly against online gambling in the US by saying in a recent article in Forbes that it was “fools gold” and a social train wreck waiting to happen.” He said that in the US online gambling was now a hot topic, but he is against online gambling because of the damage it could do to land based casinos. Although Mr Adelson says that his company brands such as The Venetian would be able to be strong opposition to online gambling, others would not and fears that more than 400,000 jobs could be lost in the land based sector should federal legislation happen. Mr Adelson adds online gaming would have high social costs, namely higher rates of problem gambling. Adelson, who donated more than

$100 million in campaign funding to Republican candidates in the recent Presidential elections, called on Congress to rewrite the Federal Wire Act or pass new legislation making Internet gaming illegal on a federal level. That does seem unlikely in the present climate, with now 3 states already passing laws to allow online gambling and many more looking to do so in the short and medium term. The strong opposition Adelson who is now 79, has against online gambling can’t be denied. He is the father of two teenage sons, with Adelson morally opposed to the possibility of children accessing gambling websites. He also worries children can grow addicted to other forms of Internet games. However the newly regulated and now operational Nevada online

gambling business uses technologies such as age verification, geolocation, and other such safeguards, which have been approved by independent testing laboratories and Nevada gaming regulators. Ultimate Poker – Nevada and the nation’s only regulated pay-to-play website – uses those systems. It is certain that Sheldon Adelson is unlikely to change his opinion to online gambling anytime soon.

Holland Casino Chief resigns the operator lost €652,000 in 2012 and the forecast for 2013 was for continued poor results and this is believed to be the reason for the departure.

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olland Casino’s CEO Dick Flink has resigned from his post with immediate effect following continued poor results and performance from the state owned gaming operator. Flink who has been CEO of Holland Casino for six years and brought in radical restructuring of the gaming company but results have continued to slide. Indeed

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Rumours have it that more executives will follow Flink out the door at Holland Casino as the company look to shake up the operation with chairman Aat Schouwenaar saying there is a need to “revitalise the casino concept”.

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GAMING NEWS

Pennsylvania delay online gambling till 2014 Bermuda to vote on casinos this year

Bermuda residents will be allowed to vote on wether they want casinos on the island.

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ina Davis, the state representative that introduced a bill for online gambling for the state back in April of this year, looks like having the legislation halted till 2014 at the earliest after many law makers in the state want to see how the current states allowing online gambling fair.

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Tina Pickaett who is the Leader of the House Committee on Gaming Oversight said, she wanted to wait and see how online gambling works out in the states where law has been passed already, both in Nevada, New Jersey & Delaware. Saying that she very much doubts any bill for online gambling will be heard this year.

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Pennsylvania would be the largest state by far should it ever make online gambling legal with a population of over 12 million residents. The state already has a thriving land based gambling business, which is ranked number two in the country behind Nevada. The state has two concerns before it will move with legalising online gambling, firstly that guidelines are in places for the protection of vul-

nerable people gambling and also that their current land based casinos are not adversely affected by any move to online gambling.

IGA 7 launches Organisers and hosts of the charity focussed International Gaming Awards (IGA), have officially launched the event which will see it enter its seventh year. Clever Duck Media announced the categories for the 3rd Februuary 2014 event this week and feature the most popular categories once again. The organisers aklso say they have located a superb venue for the IGA7, which will be announced in the coming weeks. Entries for the awards are open till 18th October.

Shawn Crockwell, the minister of tourism development and transport for Bermuda said, Bermuda will hold a public referendum on casino gaming by late summer or early fall of this year. “Gambling has been an issue here since 2008, debated pro and con. The people now seem ready to embrace it, recognizing that destinations that offer casino gaming are charging ahead of Bermuda in terms of luring investors and high tourism numbers. This could be a game changer to bring new hotel development to Bermuda and hopefully more visitors who will see it as an added amenity, particularly in terms of night time entertainment,” Crockwell said. “We envision smaller, upscale facilities with a Monte Carlo feel to them with high-end table games. There will be no slot machines. Specifics are being discussed as to whether there would be one central casino resort.”


NEWS

MC&C SIGNS NEW CLIENT – DIVABINGO.COM PMC&C has announced that the TV campaign it is managing on behalf of www.DivaBingo.com that has been airing this month, has been a resounding success.

Bwin.party still in for Nevada

Topjack Games Brokers Deal with Asian Network

LVS Launches “ABP in a BOX”, its Sportsbook Offer for startups LVS Ltd, a UK based specialist in sports betting and gaming software solutions, said that it had now released “ABP in a BOX”, a new Sportsbook offer targeting those wanting to start a sports betting operation.

William Hill Vegas launches first Nektan game online WH has this weekend launched “Show Me The Bunny” a hybrid skill/slot game on its Vegas Casino website marking the first of many releases of nextgeneration casino games created by Nektan.

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win party digital is going forward with plans for licensing in Nevada even thou there were reports contradicting this by Group CEO Norbert Teufelberger. The PLC Company which has agreements in partnership with MGM Resorts and Boyd Gaming to offer internet poker software said via a company lawyer that they online gaming giant plans to move forward with licensing in Nevada. The company is waiting for final state approval for the license in Nevada from the state regulators, which it applied for more than a year ago now. Last month, Bwin.party CEO Norbert Teufelberger said in various publications the company chose “not to operate in Nevada” and would focus its attention on New Jersey, which enacted Internet gaming laws earlier this year. Frank Schreck, a Las Vegas attorney who represents bwin.party, said the New Jersey licensing process is being expedited time period by the state. The online company wants to be in the

first wave of the application process. “New Jersey is the focus because there is a definite time table,” Schreck said. “The company is still moving forward in Nevada.” Teufelberger said Bwin.party could split New Jersey’s potential online gaming market with Caesars Entertainment Corp., which owns four of the 12 casinos in Atlantic City and is planning to launch a World Series of Poker branded website in New Jersey. Bwin.party would enter the market through its partnership with Boyd Gaming, the operator and 50% owner of the market-leading Borgata.

Norbert Teufelberger

BUSINESSMAG • ISSUE JUNE 2013

Topjack Games extends its global reach this month, as it finalises a deal with Asian gaming and system software provider Market Dimension Limited.

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SPECIAL Feature Ireland

“Ireland’s Current Gaming Forms and Trends” By J.J. Woods We welcome to our writers rosta, J.J. Woods, an industry veteran with a wealth of experience in the gambling industry and now offering you exclusive insights to working and tackling the Irish gambling question.

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he purpose of this report is to give a brief overview of Ireland’s current Gaming forms and Trends. While I am well aware that there are other forms of gaming and issues within the framework of the long awaited Gaming Legislation, I have decided to concentrate on Land Based Casinos/ Private Members Clubs ,Slot Machine Arcades , Bingo Clubs and Betting Shops for the purpose of this Update.

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survive for the following reasons: 1. They have little or no online presence which has become extremely important to survive in the Betting Shop Business. 2. They cannot compete with the in house Bonuses and special offers that the top three are offering. To sum up it is near on impossible for a betting shop business to survive without an online presence.

Betting Shops: Presently the three biggest companies operating are Paddy Power, Ladbrokes and Boylesports. Whilst there are some smaller Independents shops most of them have either been closed or bought out by one of the main three mentioned.

Slot Aracdes Slot machines are located all around the country in buildings normally referred to as Arcades or Amusement Arcades. There are approximately 250 of these establishments varying in size. This sector of Gaming is constantly growing with existing operators constantly looking for new locations to expand their business.

Performance: Business has declined generally in the betting retail sector which makes it increasingly difficult for the smaller Independent shops to

Performance: Whilst again revenues have declined in recent years due to the economic downturn there are still new sites opening around the country. The majority

of customers who frequent these establishments are Non-Nationals. As the Government has basically turned a blind eye to the operations of these Arcades we now have several machines with progressive jackpots which have proved a considerable lure to those who play there. It is rare if not impossible to find an IGT machine, Aristocrat, Novomatic etc as these companies will not supply to Ireland.The mix is usually Franco machines from Spain, Progressive Poker Machines from Northern Ireland, Ainsworth and machines from eastern bloc countries. Bingo Clubs: There are many Bingo location around the country and most of them are attached to local organisations, sport clubs, social clubs and charities.The larger ones run by companies are in Dublin and in other cities. Performance: Bingo should do well in Ireland but in reality the business


is in great difficulty and I believe there are good reasons why that is the case. 1. Ireland never had a progressive improvement in this sector like for example the UK. The Bingo Halls here were never rolled out as plush comfortable environments with good food , Family fun etc. In fact they were sometimes cold , no hot food available and associated purely with the retired generation.

Private Member Clubs/Casinos: This sector has certainly reduced in the number of clubs around the country. About 3 years ago we had over 50 of these clubs in Ireland and today we have approx.25 up and running. There are several reasons for the closures but these listed could have instigated this. 1. Anti Money Launder Policy: Requires operators to register the club

with the Minister of Justice Office.

chines installed to enhance their

2. Economic Downturn. 3. The VAT issue Performance: Naturally the Clubs in the Cities perform better than those in towns and rural areas. All of the Clubs have a poker element in that they run Texas Holdem tournaments, but in my opinion this area has been overrated certainly since around 2009. It is questionable in fact if these type of games where ever good for Casinos. Whilst it filled seats from 2004 till 2009 it has declined considerably and often gives the false impression that the Casino is healthy because there are people in it.

revenues whilst others just carryon with Poker and Roulette and Blackjack. The situation is catch 22 because you have a lack of interest in pushing New Gaming Legislation from the Government and of course the existing Casino operators are afraid (naturally) to invest more into their businesses, So the result is customers miss out on the “ Casino Experience’’ and that is very evident if you compare the Casinos in Ireland to that of Europe or around the world.

Some of the Casinos have Slot maJJ Woods was born in Ireland but left in the 1970’s to live in London and he started his career in banking. After four years in Banking in London JJ trained in the Casino Industry. Over the last 30 years JJ has dedicated his career to the setting up, including: design, opening and management of Casinos around the world. Throughout his time in Ireland JJ has also done several Radio, Television and Newspaper interviews on the subject of Casinos and gaming, he is above all extremely passionate about the Casino Industry and Completed a gaming submission to the Irish Government during Legislation Research. He is a leader in respect of the responsibility of customer care He was responsible for the following Casino designs and set ups in Ireland : Macau (Cork), Silks (Dublin). www.atlanticcasinoconsultants.com Email: info@atlanticcasinoconsultants.com

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2. Whilst efforts have been made to provide better facilities in recent years this has certainly not been backed up by a strong marketing campaign to attract new possibly younger players, In some ways the changes have come before the marketing and the roll out of these new clubs have certainly missed their target audience.

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GAMING NEWS

Melco to take part in Barcelona resort

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he competitor to EuroVegas which is to be built in Barcelona has asked Melco International Development which is a partner to Melco Crown Entertainment in Macau to take part in the development. Melco which is led by Lawrence Ho has confirmed they have been invited to take part in the project in Barcelona by developers of the project, Veremonte. The Barcelona gaming and leisure complex which is estimated to cost $1 billion. Melco International Development Ltd – a partner in Macau casino developer Melco Crown Entertainment Ltd – has been invited to take part in a US$1 billion gaming and leisure project in Barcelona, Spain.

Melco said in a statement to Macau Business Daily: “Melco International Development Limited is happy to be invited by Veremonte to take part in the Barcelona World project as casino operator. In the coming months, we shall continue to work with Veremonte on the definitive casino management agreement and shall make announcement when the agreement is signed.” The Barcelona project came about after being turned down by Las Vegas Sands as its preferred destination for the Euro Vegas resort, which Madrid eventually won. Euro Vegas is slated as a $9 billion resort project, however recently as reported by the iGaming Post, Euro Vegas has been stalled with land auction delays and the request that the casino side of the resort be allowed for customers to smoke, which is against the law in Spain. The first phase of the resort in Barcelona would be called Barcelona Dream and occupying 300,000 square meters with 1,100 hotel beds, a casino and a theatre. Developers say that it will take two years to build and could be operational by 2016.

Zynga to cut nearly 20% of workforce Zynga has announced that it will cut almost 20% of its workforce in a measure to cut costs. The measure is expected to mean some 500 plus jobs will be lost at the online social gaming giant, who recently went into real money poker online with partner bwin.party. The job losses are expected to slightly help second quarter results which analysts believe will be in the $30 million minus bracket. According to bosses at the company the losses will be at multiple studios and will help save the Zynga between $70 and $80 million. ‘None of us ever expected to face a day like today, especially when so much of our culture has been about growth,’ Chief Executive Mark Pincus said in a memo to employees. ‘But I think we all know this is necessary to move forward. ‘The scale that served us so well in building and delivering the leading social gaming service on the Web is now making it hard to successfully lead across mobile and multi-platform, which is where social games are going to be played,’ he said.

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Melco confirmed in early Junet it had been asked to operate a casino at ‘Barcelona World’ – also known BCN World – planned for the Catalan capital. The project is being organised via a vehicle called Veremonte.

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the international gaming awards

categories The IGA Awards is Free to Enter •Casino/Integrated Resort of the Year •Casino Operator (Europe, Americas, Australia & Asia) •Casino VIP Room of the Year •Corporate Services Supplier of the Year •iGaming Software Supplier •Gaming Industry Fair Play Award •Industry Publication/Portal of the Year •Mobile Operator of the Year •Online Bingo Operator of the Year •Online Casino Operator of the Year •Online Poker Operator of the Year •Online Sportsbook Operator of the Year •Payment Solutions Provider Company of the Year •Socially Responsible Operator of the Year Land Based •Socially Responsible Operator of the Year Online •Slot Manufacturer Online or Land Based •Slots Operator of the Year (Online) •Technology Provider/Supplier •Traditional Casino Equipment Supplier •Outstanding Contribution Award “We are absolutely delighted to be honoured by the International Gaming Awards” - Malcolm Graham CEO PKR “The International Gaming Awards is a truly prestigious event” - Jim Ryan, Former Co-CEO Bwin.Party “This is such a special moment and I know all at Sands in Vegas will be over the moon” - SVP Sands “What the IGA is doing is really smart and sure the event will only get stronger and stronger each year” - Mitch Garber CEO Caesars Interactive “My father has been honoured with one award, however I have won three this evening and Melco Crown Entertainment will be delighted when I go home” Lawrence Ho CEO Melco Crown Entertainment Macau

To enter go to the website and nominate before the closing date of 18th October 2013.


GAMING NEWS

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Sands try to block $100 million payout

as Vegas Sands has asked the judge who presided over the Richard Suen vs Las Vegas Sands case, that eventually Suen won with a $100 million plus settlement, to set aside the damages payment. The reason being the jury awarded the total amount of $101 million to Suen’s company, Round Square Co. which is now defunct. The case concerns that Richard Suen had a major hand in helping Las Vegas Sands acquire a Macau gaming license, to which LVS say he did not help that much. In the 7th June court filings by Sands, the company argue that the jury awarded the damages for services rendered to Round Square Co., Richard Suen’s company, rather than to Suen himself. Round Square had been dismissed from the case prior to an earlier trial in 2008 and hadn’t been reinstated on that damages theory, Sands said. “Because the jury’s verdict purports to grant relief only on a putative claim that was long ago dismissed, and never validly reinstated, the verdict must be set aside as a matter of law,” according to the filing by Sands.

Richard Suen District Judge Rob Bare added $31.6 million in prejudgment interest on May 28. This was Suen’s second trial against LVS to which he claims that meetings he helped set up for Sheldon Adelson, the LVS Chairman with Chinese Government leaders in 2001 were vital in Sands’s winning a license to own and operate casinos in Macau. Now however, Round Square had been reinstated by the Nevada Supreme Court on appeal, so observers believe the action by Sands will ultimately fail.

It was in May that the jury awarded some $70 million in damages to Suen’s company and then the Clark County

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n an announcement this week Caesars Interactive have taken over full control of the World Series of Poker (WSOP) mobile app. The highly popular application is now owned by Caesars Interactive having purchased the assets connected to previous owners Electronic Arts. The App which is used on mobile and on Facebook comes now with the gaming giant looking to expand their business using one of the most recognised poker brands in the

World, along with the deal with Electronic Arts the department which was responsible for the App has also transferred to Caesars Interactive, all 19 employees. The WSOP app is available currently on Facebook, iOS & Android devices along with Amazon Kindle.

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Caesars Interactive take over WSOP App

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FEATURE ARTICLE

“Who’s the Boss? ”

– What makes a great boss? In the world of gaming we have some stand out bosses, ones that always find great jobs with big companies. Why is it that these individuals seem to move from one company to another and are a success wherever they go?

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f course education is one thing, to be a Boss in a major company that is important, but you find that that is only one element of the makeup of a boss. In this article we look at what makes a great boss, the one who is most admired and sought after.

Let us consider the 10 qualities that produces a great Boss. Yes, you cannot expect your Boss to have them all but an appropriate mix is good enough to make a great team. Through all these years these are the qualities that we all have liked in our bosses. What makes a great boss is the ability to get the best from different individuals within the team. Let’s discuss this qualities and see what we miss:

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1) Leadership- First and foremost quality that makes a great boss is that he/she should be a great leader. Most people are generally followers and look upon someone to lead them through success. The Boss is the person who is expected to fill this position and lead the team through growth and success. It is important for a boss to lead and get the best out of his team by providing them an environment which is conducive to excellence.

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No one is ever perfect and no one is ever expected to be. However there is something about great bosses that make them click with almost everybody in their team. People don’t work for companies, they work for their bosses. If the Boss is not the one with the right capabilities then all you have is a team of highly unsatisfied individuals. Sometimes people need someone to bring out the best in them and this someone is none other than Boss in any particular job. Great Bosses creates great teams that produce exceptional returns.

2) Vision- Though highly misunderstood, this quality is must for any Boss in order to lead the team and show them the path forward. Different jobs encounter different types of vision, but having one for self and for the team provides a peep into future that is must for growth of the team. A visionary knows what can be expected in future and molds the work keeping in mind the things that have the potential to shape future. 3) Mentor- Team always looks upon someone who can mentor them and help them with their problems and difficult situations. The job of the mentor is to analyze the situation and suggest a path that always leads towards better solutions. This is the only reason that many companies have officially started to recognize this


– Not all bosses are like Steve Carell position and have appointed respectable people to help employees with their problems. 4) Communication- It is very important for a Boss to know what to communicate, when to communicate, and how to communicate. Be it bad news or good news, it is important for a Boss to know the intricacies and nuances and deliver it in a manner that desired impact gets percolated. What a Boss talks about holds a lot of weight and hence it is important to be very selective about the words and phrases one uses.

6) Recognition- A factor that makes a great Boss. Giving employees due recognition for their work and a making them feel important and wanted for their contributions are invaluable factors that promote employee satisfaction. Recognition also gives due respect which again is an important aspect in any workplace. 7) Focus – A Boss to have a great focus not only on the job but also on employees too. It is imperative for a Boss to understand the diversity and nature of employees and give attention at an individual level. Each individual employee needs to be

treated in a different manner in order to help them produce the best of results. It is the Boss that can make it happen directly or by providing a great environment for this to happen. 8) Trustworthy- It is important for employees to trust their bosses. If there is no trust, it is very difficult for other things to blossom and reach their full potential. People generally need someone in which they can confide and the person who can be best in these situations is always a boss. It is a critical position and hence needs to be handled with due care too. 9) Experienced- A Boss who has hands on experience with the kind of work that gets done in the team is very important. If you are new, then it is important for you to roll up your sleeves and get down to learn things that actually happen in the team. It is very important factor that gives respect and makes team members give their unquestionable

commitment. 10) Friend- Last but not the least, the factor that answers what makes a great boss is that, if possible, he/she should be your friend too. Though there would be a delicate balance in this relationship but friendship in some form is important to get the best out of your team. At any time it is important that both boss and team members should not take others for granted but at same time a friendship is a bonding that helps team succeed in a natural manner. It is important for the boss to understand the responsibility and how different lives are dependent on him/her for their growth, peace, and success. What makes a great boss is all about qualities that each one of us want to see in a great person. Being a Boss brings an onus to posses these qualities or arm ourselves with them in due time so that exceptional results can be produced.

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5) Positivity- It is very important for a Boss to look at the positive sides of things. Mistakes happen and a Boss can do is to create an environment that prompts people to learn from their mistakes. A positive attitude in any situation is very encouraging for the employees because they are not bound by thoughts and things that take them a step back in life and career.

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WORLD NEWS

Las Vegas to get new mega resort

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urasia Resorts International have announced plans for a huge new development in Las Vegas, including six hotels, 39 casinos and a six-million-squarefoot convention centre, with work starting on the development in late 2014. The mega resort will be built on land just off the main Las Vegas Strip with both indoor and outdoor

theme parks, the world’s largest fearis wheel at 800-feet tall, three PGA-quality golf courses and a 15 million square feet shopping mall. “It is our deep hope, sincere belief and high expectation, an expectation bolstered by visitor polls taken in Las Vegas, Cancun and Atlantic City, that the addition of all these missing components to the Las Vegas vacation experience will result

in tourists spending 2 – 3 extra days here, almost all of them in their existing preferred resort, be it the MGM, Wynn, Caesar’s or wherever they usually stay,” said Eurasia president John Ray. No details at present have been given on who will manage the casinos within the complex.

Jamaica invites casino operator applications

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wo years after passing the Casino Gaming Act in Jamaica, allowing casinos to be built on the island, the Government have now released an invitation for operators to apply for a license to operate in the country.

Speaking on the cost of the application an official from the Jamaican gambling authority said. “There is significant due diligence to be done, and those have costs,”

The ‘Approval of a license which will be issued as a development order, first has to be approved by the Ministry of Finance, after which the investor can then request a casino licence under the law which was enacted in 2010. The Casino Gaming Commission in Jamaica is only allowing three such resorts that will be allowed to also offer gambling on the development. The review period for applications is an estimated to take some four months, which means that approved developments are likely to be announced in January 2014. Revenues for Jamaica will come in the form of a 10% tax on gross profits on the casino, along with licensing of all personnel, annual renewal fees, slot machine taxes and operator licensing fees.

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Part of the process will mean any operator applying for a license will need to show they will also deliver a resort that has a minimum of 2,000 hotel rooms included. Cost of the application will be $150,000 that will be non-refundable and closing date for applications will be the 30th September 2013.

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ARTICLE

Lessons from the Insurance Industry #191 © Copyright 2013, I. Nelson Rose, Encino, California. All rights reserved worldwide. Gambling and the Law® is a registered trademark of Professor I. Nelson Rose, www.GamblingAndTheLaw.com.

By Professor I. Nelson Rose

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icensed gaming is slowly becoming just another legal business; which is a very good thing.

Many of the strangest restrictions in the law arose from centuries of gambling being seen by society, or at least by opinion-leaders and law-makers, as an activity that was simply not respectable. Gambling debts were unenforceable, and courts would no more allow casinos to advertise than they would brothels. A gaming license was similar to James Bonds’ “license to kill”: It merely protected the operator from being prosecuted for what was otherwise an illegal act.

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In the past, other industries struggled with becoming respectable in the eyes of the law. This usually took the route of trying to show they were not forms of gambling, even if they were. They also knew they had to come up with arguments on why they were actually good for society. The best examples are trading in securities and commodity futures, and insurance.

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Insurance is, of course, gambling. Looking just at the required three elements, insurance has prize, chance and consideration. After all, a policy holder is merely betting a small sum with the expectation of winning a larger sum if a certain contingent future event occurs.

Systems similar to modern insurance are at least 3,500 years old. Shippers, merchants and financiers developed schemes to share the risk and spread unexpected losses caused by pirates and shipwrecks. Insurance as a separate contract first developed in Genoa in the 14th century, and was again focused on marine shipping. The long history of maritime insurance made it the least susceptible of being viewed as merely gambling in more modern times. The Great Fire of London, in 1666, appears to have led to the creation of the first fire insurance. Insurance probably would have been ignored by lawmakers if not for two developments. Owners of fire insurance policies seemed to be having a few too many fires. And operators found ways of turning insurance into pure gambling. A gambling fever swept England in the 17th and 18th century. As UNLV scholar David G. Schwartz put it, men would bet on anything: “on whose grandmother would live longer or whether a surgeon might successfully save a particular patient.” This turned what was merely a way for merchants to lessen their risks into wide-open wagering. People would take out life insurance policies on celebrities.


ARTICLE

(Continued) During the Nine Years’ War of 1688 to 1697, insurers took wagers on which cities would be the targets of military action. Probability theory, on which both insurance and gambling is based, was developed in the seventeenth century at the behest of professional bettors. Conventional gambling and insurance came together with the creation of “lottery insurance” and “insurance offices.” Lottery tickets were extraordinarily expensive, at least £10, more than a year’s wages for most workers. So, shares in full tickets were sold for much less, similar to how full tickets for Spain’s “El Gordo,” which cost

burse loyalists who had suffered during the American Revolution. The standard arguments were raised about the evils of gambling, whether the state should profit from the vices and weaknesses of its citizens, the dangers of competitions of foreign lotteries, and the discussion of lotteries as a “voluntary tax.” But then one Mr. Rose (probably no relation) defended the lottery by declaring “that the evils complained of formerly existed... but he had reason to think they existed no longer. They had not arisen from lotteries themselves, but from the illegal insurance offices that had been opened. Those offices were now put an end to...” What finally led to a crackdown on insurance was the unseemliness, and danger, of people buying life insurance on well-known strangers. The argument that the purchaser of insurance is actually trying to avoid risk did not work in this case. Business owners do not think they have lost bets when they do not have a fire, any more than when they hire security guards who never have to draw their guns. But while a theater has a business reason for insuring against the death of its box-office draw, even the biggest fan does not.

But hustlers figured out how to sell chances for even less. “Clients” could “ensure,” for one shilling, that a particular number would not be drawn from the state lottery wheel on a particular day. These “policies” paid £10 if the number was drawn. The practice spread to America. Even today, the illegal numbers racket is often called “policy.” Parliament made sporadic efforts over the years to eliminate lottery insurance. On April 4, 1792, the House of Commons debated The Lottery Bill, to help reim-

The insurance industry won its battle to remain legal by showing that true insurance was different from pure speculation. This is similar to the arguments that advocates for Internet poker are making today. Poker sites would like to have online casino operators as allies. But they know they have more chance of winning over religious conservative Republicans and paternalistic liberal Democrats if they show that poker is a game of skill.

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€200, are sold today in half-, quarter- and smaller slices.

In the U.S. and England, courts and legislatures developed the “insurable interest” rule. You cannot take out a life insurance policy on someone you have no connection with. That would be too much like making a bet that another person would die. Plus, government is afraid that you might be tempted to do something to try to increase your chances of winning.

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ARTICLE

Lessons from the Insurance Industry (cont)

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f course it is an easy argument to make. As noted poker author Richard Sparks observed: “I’ve been outplayed far too often on the Internet not to have learned the hard way that poker is, very sadly, a game in which skill predominates.”

Gamesys to launch online poker

State lotteries can’t make this argument. But they were originally sold as ways of helping education or the elderly. They successfully shifted their image, to the public, as being merely another form of entertainment; while legislators and governors see lotteries as essential to balancing state budgets. Insurance eventually overcame its gambling roots because it was seen as creating a benefit for the general public, as an efficient way of spreading and lessening risk. Still, insurance had to be outlawed if the sole purpose was merely to make money by betting. Pure speculation was not only of questionable morality, but also considered economically inefficient, because it did not contribute anything to the greater society.

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Advocates for expanding gaming need to study history, to see how insurance succeeded. Insurance is, by far, the largest form of legal gambling. In fact, by some standards, the insurance industry is the largest industry in the world.

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© 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, industry and players. His latest books, INTERNET GAMING LAW (1st and 2nd editions), BLACKJACK AND THE LAW, GAMING LAW: CASES AND MATERIALS and GAMING LAW IN A NUTSHELL are available through his website, www. GAMBLINGANDTHELAW.com.

Reports recently have centered around Gamesys and the possibility of the company launching their own proprietary online poker software. Having purchased Virgin Games at the beginning of the year, Gamesys went on a pull out of all the major software suppliers except for IGT. Content from suppliers such as Microgaming, Playtech Net Entertainment and Cryptologic were all dumped and Gamesys stayed just with IGT. Then Gamesys started advertising for Poker software developers to be based in Edmonton, Canada with the adverts saying “proven experience of leading poker development projects on a global scale aimed at the European and American markets”. It is clear now that Gamesys are moving back to only using their own proprietary software which made them so successful in the beginning with brands such as Jackpot Joy which launched in 2004. Also with the US online poker market looking to expand further and with a proposed federal online gambling bill due out soon, Gamesys feel the time is right to go it alone and conquer the US market.


GAMING NEWS

Japan to have gambling legislation by end of 2013

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ollowing reports previously on Japan looking to legalise gambling within their borders, it seems almost certain that the newly installed government will move steadily forward by the end of the year to legislate for gambling in Japan. A gambling bill is to be submitted to the Japanese parliament later this year that, if passed as expected it will, will pave the way for mega resorts to be built. “Japan may be the only developed country without casinos. But we are sprinting to the finish line,” Takeshi Iwaya a lawmaker in Japan told AFP in an interview. The country has had many rumours over the years that gambling would be legalized soon, but with the current government looking to

encourage stimulus in the economy, they see gambling as one way to do this. Japan has the potential to be the biggest gambling destination outside of Macau, with projections on turnover once the industry is fully operational of some $100 billion annually. With just two casinos in Tokyo and one in Osaka, which is believed to be the first phase of gambling in Japan should it happen, expected to raise incomes of $10 billion alone. Pro gambling supporters point to Singapore for inspiration as just two casino resorts there raise a combined revenue of about US$5.3 billion in 2012.

With Japan having a population of over 120 million residents, many pushing for legalizing gambling believe this would encourage nationals to stay at home and spend their money in the countries casinos, as opposed to travelling elsewhere.

Philippines to reach $2.5 billion revenue target

“I’m certain that the first five months of the year has been higher compared to the same period last year,” he said in a news conference. “We will have higher revenues by year-end, but the bulk of that growth [in gaming revenues] will basically come from Solaire Resort and Casino,” Naguiat said. Last year total revenues from gaming brought in $2 billion and although the year to date was slower, it is believed the second and third quarters will exceed last year’s revenues.

Naguiat said he still expects the Philippine gaming industry to be a $10-billion industry by 2017. “While one of our requirements is for them to have revenues of up to $1 billion [P42 billion], and without us pushing these targets, they’re really doing everything to raise the bar. For instance, after Solaire’s opening, Melco Crown [Philippines] Resorts Corp. went back to the drawing boards to revise their designs to be at par with or even be better than Solaire’s,” he said. BUSINESSMAG • ISSUE JUNE 2013

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he Chairman and CEO of the Philippine Amusement and Gaming Corp. (Pagcor), said this week that it expected to reach its targets of $2.5 billion in revenues for the region this year.

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Crystal Plays Detective JPM’s Crystal brand continues to blaze the trail of high-end entertainment with the release of Sheerluck Holmes, an entirely new AWP for the UK Category C sector. Sheerluck Holmes is the latest embodiment of Crystal’s strategy to support operators with high quality games at extremely competitive prices and as JPM’s Paul Bursnell revealed: “Operator feedback on the Crystal ethos and commercial intentions has been very positive and I’m confident that this game will serve to further consolidate the brand’s position in the UK market.”

For more on JPM games at www.playjpm.com

Olympian Group Presents BETSYSTEMS Olympian Group, a world leader in online gaming operations, management and marketing, has unveiled the most advanced casino-sports-poker management system available on the market today, BETSYSTEMS. Described as the ‘App Store of online casino management’, BETSYTEMS is completely modular and comes equipped with the latest online casino management technology. It also boasts smooth and simple payment methods, integrated on-demand features, superior development support and powerful marketing features. The cutting-edge platform is also the most cost-effective operating solution on the market and, in most cases, gaming operators will save money by switching from their existing platform to BETSYSTEMS.

LEANDER GAMES INTEGRATES ITS GAMES WITH BELGIAN OPERATOR CASINO777.COM Leander Games has announced that it has integrated a large number of its slot games with the Circus Group’s well known Belgian operation – www.casino777.be. Leander has established itself as one of the most innovative provider of slot games, having recently been nominated for three categories at this year’s eGaming Review B2B Awards for “Innovation in Slot Provision” and “Slot Provider of the Year” and “Social Gaming Supplier of the Year”. Therefore this latest news means that players to the casino now have access to some of the most engaging slot games such as Megadeth, Snake Slot, Ali Baba, Little Pigs Strike Back, Magic Building and 7 Lucky Dwarfs.

Income Access Issues Statistics on iGaming Industry Player Activity for Q1 Income Access, a leading supplier of technology and digital marketing solutions for the iGaming sphere, has released data on vertical-specific player activity for the first quarter of 2013. Surveying a broad sample of leading iGaming operators, the company’s findings reveal that player activity for the casino vertical has risen notably on the quarter, though the sportsbook vertical continues to account for the largest volume of player acquisition. Player activity for the casino vertical has risen to 22.8% in Q1 of 2013 from 12.4% in the final three months of 2012, according to data gathered by Income Access. www. incomeaccess.com


IGT Expands International Reach with Betsson Partnership International Game Technology (IGT), the global leader in driving technology innovations in the gaming industry, has partnered with international sports betting and gaming company Betsson. Betsson, the leading Maltese operator, will significantly increase its online and mobile offering via a single integration with IGT rgs® (remote game server). MONOPOLY Plus, 100 Pandas, Cleopatra and Da Vinci Diamonds will be among the broad portfolio of games to go live in a multitude of countries with full language and currency support across all channels.

Social Gaming Association to work with the UK Gambling Commission on Social Gaming Analysis Following the release by the UK Gambling Commission of its report commissioned to research and analyse the potential risks posed by social gaming, the Social Gaming Association is pleased to announce that it will be assisting the Commission over the coming months with the collation of industry data as the Commission considers the report’s conclusions and begins to formulate its future policy regarding social gaming. Stuart Tilly, Chairman of the Association commented: “We firmly support the balanced and considered approach taken by the Commission in its attempts to understand the social gaming industry and its pro-active attempts to engage with the industry through out.

For more information: www.IGT.com For more information: www.socialgamingassociation.

BETONSOFT RELEASE PUNTO BANCO TABLE GAME BetOnSoft, leading providers of premium gaming, casino software and turnkey solutions to the online gaming industry, announces the release of new table game Punto Banco. Players are transported into the glamorous and stylish world of suave secret agent, codenamed Beech, as they play the popular card game Punto Banco. With a host of beautiful characters in attendance, players can relax with a dry martini as the action unfolds in an atmosphere evocative of Monte Carlo’s finest casinos. The 6-deck set-up with classic Punto Banco rules is complemented with character voices that react to wins and losses. This fantastic audio combined with vivid HD graphics ensures Punto Banco delivers on all levels. As with all its games, BetOnSoft include Punto Banco in its PlayBack product.

Lotsys and Morpho unveil gaming terminal with optical scanner and announce large-scale roll out by FDJ Lotsys, a fully-owned subsidiary of the Française des Jeux (FDJ) Group, and Morpho (Safran), announced the roll out of a new FDJ retail gaming terminal at the European Lotteries Congress today in Tel Aviv. The terminal, named ELITE, uses ground-breaking new imaging technology developed jointly by the companies. Cutting-edge technical design will reduce the overall cost of ownership. A highly-durable camera replaces the mechanical parts ofprevious generation terminals, slashing acquisition and maintenance costs. For more information: www.morpho.com


ARTICLE

Money on iPhone Apps

Making

Fifty billion downlaods on the App Store so far, nearly one million apps out there and an industry that has made $10 billion so far making and selling apps. But how do you make money on iPhone Apps?

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k you have your iPhone and seen all the apps on there and wondered if you should do your own app and see if you can make some money from it.

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You see all the thousands and thousands of downloads from popular apps and want to launch an app of your very own. Well let us guide you through how to get on the app business and more importantly make money from your app.

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Current data from Apple iTunes store say there has been over fifty billion downloads of apps, with some nine hundred thousand apps on the store and an eye watering $10 billion revenue for developers of those apps so far. We all know that figure is going to get larger as more of the population buy iPhones. However one leading iPhone app specialist said, There are so many apps out there, it’s an extremely crowded market so that the barrier to entry is so low and the bar-

rier to success is so high.” Now that could spell trouble, there is indeed so many apps being built that really most of them are not even useful. One of the things an app builder has to decide on is their target market, as our industry insider says, most of the time you are not necessarily aiming to have the biggest game out there, so there’s still room to make a business out of it if you’re trying to capture a certain audience.” So having a good idea for an app is important, then you build it and want to make money out of it, let us offer some tips on making a profit from that app.

Getting Approved In a market where everyone wants in on the action, as an app creator, you have two major hurdles. The first is making an app that is going to get a favorable review when you submit it to the Apple iTunes App Store.


There has been a lot of negative publicity concerning getting your app approved, however developers say that getting their app approved isn’t the struggle the media say it is. But Apple do have standards for apps and they do restrict adult rated and pornographic content, and the company excludes apps that, in its view, do not enhance the iPhone experience or that duplicate existing iPhone features. When it comes to fresh, inventive content, however, most apps are readily approved.

Indeed the stories of 6 month waits are not correct, with most professional app designers having their creations given the thumbs up or

One app creator said that most of their apps were accepted and the only ones that were not, were ones that had design flaws.

Getting your App out there

down within three days of Apple accepting them for review.

After an app has been approved and is listed for sale in the iTunes App Store, your next aim is to of course get customers to download it. This is the tough part of the business. You need to get your app up the rankings within a category. There is help in the process of gaining

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The second is promoting your app so that it breaks through the 90,000 other apps and makes you money.

There has been a lot of negative publicity concerning getting you App approved, however developers say that getting their app isn’t the struggle the media say it is. But Apple do have standards for apps and they restrict adult content, pornographic content and excludes apps that do not enhance the iPhone experience

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The 7th International Gaming Awards Categories

Click Here to Nominate •Casino/Integrated Resort of the Year •Casino Operator (Europe, Americas, Australia & Asia) •Casino VIP Room of the Year •Corporate Services Supplier of the Year •iGaming Software Supplier •Gaming Industry Fair Play Award •Industry Publication/Media Service of the Year •Mobile Operator of the Year •Online Bingo Operator of the Year •Online Casino Operator of the Year •Online Poker Operator of the Year •Online Sportsbook Operator of the Year •Payment Solutions Provider Company of the Year •Socially Responsible Operator of the Year Land Based •Socially Responsible Operator of the Year Online •Slot Manufacturer Online or Land Based •Slots Operator of the Year (Online) •Technology Provider/Supplier •Traditional Casino Equipment Supplier •Outstanding Contribution Award

“We are absolutely delighted to be honoured by the International Gaming Awards” - Malcolm Graham CEO PKR “The International Gaming Awards is a truly prestigious event” - Jim Ryan, former Co-CEO Bwin.Party “This is such a special moment and I know all at Sands in Vegas will be over the moon” - SVP Sands “What the IGA is doing is really smart and sure the event will only get stronger and stronger each year” - Mitch Garber CEO Caesars Interactive “My father has been honoured with one award, however I have won three this evening and Melco Crown Entertainment will be delighted when I go home” - Lawrence Ho CEO Melco Crown Entertainment Macau


ARTICLE

Making Money on iPhone Apps (continued)

What does it take to win over Apple’s support? Good design is important. And making something that’s useful and also is nice and polished and looks good, and your chances are vastly increased. Looking good is a matter of solid design. Enlist a designer to help create the interface a user will experience, as well as the logos and screen shots that will appear on the Apple iTunes App Store. Besides design, being polished includes being technically solid. If you are developing the app yourself, you may want to consider bringing on a programmer who is well-versed in Objective-C to help you; though apps can be built using other programming languages, this version of C++ is the standard. You should also be sure to give your app the full battery of beta-testing it needs before you make your submission.

Making it useful for your existing Business If you have a business, creating an app or apps to enhance your clients’ experience in your business can be a tremendous opportunity to expand your business. While developing your app you need to think “what do we already do, and how can it be used on the go for our customers?” When Zillow, a real-estate listing company, built an app, for example, it not only included its standard real-estate listings, but also allowed

users to scope out rentals and homes for sale in their immediate geographic area. That is the kind of app that you need to think of for your business, make sure it has a connection and useful ability to integrate into your current business model.

Simple app or not Some of the most successful apps are the most complex: Locationaware, social-networking-capable apps. But also some of the most successful apps are very simple and just fun to use, such as Lightsaber unleashed, where you just wave a lightsaber on your iPhone. These simple apps can easily go viral and take little effort to design along with minimal marketing such apps can to go socially viral. Then again, if it doesn’t sell, no biggie: just try again. On the opposite end of the spectrum, complex, multi-faceted apps are born most often out of an existing business or business model, and can require a team of designers working for weeks or months. This model is best for existing websites and businesses that can add value through creating an app. With these, you’re going for polish, perfection, and possibly a higher pricepoint. What’s more, complex apps need to be sticky to be effective. That’s where marketing comes in. In the middle ground stand a host of simple-concept games with great graphical interfaces. If you look at the App Store’s top 10 sellers for paid apps at any given time, most of them are games. Games that either educate or temporarily amuse,

especially ones that anyone from age 4 to an adult can understand and appreciate, are almost always in demand.

Flaunt What You’ve Got Once your shiny new app is available in the App Store marketplace, visibility is vital to profitability. Getting into the App Store’s top 100 – much less top 10 – list is of course the best way to see sales soar. If that’s just not happening for you, start small. Build an audience from the ground-up. It’s not necessarily the day that comes out that it needs to have blockbuster sales. Think about what audience you’re going after, and how that person interacts with their device. Whatever you go for when designing your new app, good luck with it, apps are here to stay and will only grow in the future.

Contributions from Christine Lagorio is a writer, editor, and reporter whose work has appeared in The New York Times, The Washington Post, The San Francisco Chronicle, The Village Voice, and The Believer.

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xposure as Apple features new apps daily.

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GAMING NEWS

Switzerland to propose online gambling bill

Switzerland is considering to implement new laws

to regulate and legalise online gambling within their borders. The Department of Justice and Police along with other federal agencies will be charged with drafting new laws allowing online gambling. With a consultation period on the newly proposed laws being held in the final quarter of 2013. The country already has land based gambling with 19 licensed casinos, but the government were worried that online gambling could damage land based gambling and have previously held back on allowing laws for online gambling, which has been lobbied against by land based operators. However with a recent report on internet gambling being published showing that the effect is minimal and the revenue from online gambling offsetting the loss to land based gambling, the government has decided to move forward with legislation. Under the Swiss 1998 gambling act all online gambling is excluded, however Swiss nationals have never had a problem connecting to external online sites and play

ing. Observers believe that the government will move for an online gambling license fee to operate within the country and will allow nationals to play online poker and other games outside the borders without restrictions. It is also understood that those operators without a license will have their ISPs blocked so players cannot access those sites once licenses are issued. The tax on operators receiving a license to operate in Switzerland is not clear as of yet, but it is believed to be a standard rate and not excessive unlike other EU

Paddy Power offer a bet on Rooney

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The Irish bookmaker famous for their attention grabbing adverts has opened a book for punters to bet on where Rooney will go with his hair style. In 2011 Rooney underwent the first hair transplant and following the procedure actually scored nine goals in the first five matches on his return. So it only makes sense surely that

the England international will go for something more spectacular to help with his goal scoring record. Here are the odds and style that Paddy Power are offering:

7/1 for Wayne to follow in the studded footsteps of Bobby Charlton and bring back the combover, while it’s 8/1 for him to rock a Mohawk and 14/1 to don an Alice Band al la Beckham.

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nce again Paddy Power has taken a cheeky dig at Manchester United and England footballer Wayne Rooney, following reports that Rooney has recently undergone a nine hour hair transplant.

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FEATURE ARTICLE

The Conversion Two-Step By Ellen Learmonth

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t might sound like a dance but it is much harder than that as the affiliate and the affiliate manager strive to convert players. It has less to do with music but a lot to do with harmonies because getting the conversion right is not the easiest of tasks and as any well-oiled operations team will tell you, there is more than one contributing factor to getting it right.

forward CPL deal it’s easy, the moment that the players lands regardless of deposit, the job is over with the feeling of “my part done now over to you”. Job done! However if you are on a CPA- or revenue share deal then the affiliates have done their part in getting players to the site, but now they have to rely on factors that are out of their control. Getting the players to register and then deposit is something that is beyond the control of an affiliate and usually something that the affiliate manager struggles to comprehend because the blame is usually directed towards the affiliate because “the quality of the traffic is poor”. So the next step is to increase conversion with the magic recipe that incorporates “exclusives” and “landing pages”:

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ECLUSIVES I love the word exclusive, not one single mail or post or statement goes out without using this word. It covers a multitude of sins and none of us really know if the exclusive that we are getting really is exclusive. I think it’s even replaced the word “free” as the most popular word in gaming.

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There is a blasé attitude towards conversion that leaves most affiliates asking the million dollar question “can the affiliate team convert the players that I send?” The simple answer is yes, but there is more to this than meets the eye, and the importance of a well-run conversion/retention program is greatly under-estimated. The problem that most affiliates, affiliate managers and CRM teams all have in common is the responsibility and when it changes hands. For an affiliate on a straight

“Exclusives” isn’t just about bigger or better bonuses, but also about the partnership between the affiliate and affiliate manager. What the affiliate wants is an exclusive offer or USP that makes them stand out from the rest and a competent landing page that displays the offer or bonuses. What the affiliate manager needs are quality players that have every intention of stopping and shopping at the site. Failure to get both right means that there is a potential for wasted opportunities.


– Expert tips and tricks for affiliates LANDING PAGES “If you build it they will come” I know that we have all heard this before, but seriously, is the landing page really the hub of all trapping devices?? Is a well thought through landing page the mecca for all conversions? Yes, wait No, OK, it could/should be, but more often it is not and that is down to lack of knowledge. A well-presented landing page is a great tool, but it must consider the rules and learning of online behavioural shopping. If you don’t get the basis right then it won’t matter what your offer is or what incentive you post, the landing page won’t work. of judging a book by its cover. But with so many offers on other sites and pages, it’s a fact that we have to accept. So make your first impression count!

• Your landing page needs to have everything at a glance • Nothing that you offer should be more than one click away • The “call to action” needs to be prominent • There needs to be a USP that is worth investigating further • It needs to be well presented and professional

There are plenty of informative sites that have discussed and tested the combination of exclusive offers and landing pages and some practises are openly shared. I invite both affiliates and affiliate managers to get in the know and not be afraid to test various offers. To the affiliate manager: Do not disregard affiliate traffic as bad if you have not tried to seriously convert it by making it easy for the potential player. To the affiliate: Do not trash an operator because conversions are slow – keep at it and work on the best recipe for your players. Dance the dance!

The attention span of most viewers is minuscule and measured in seconds rather than minutes, so if it takes a player more than 5-6 seconds to find what they are looking for then it’s too much of an effort. On a landing page your eyes will scan that complete page in a few seconds and you associate what you can or can’t see in that time to how good the site is going to be. It really is the modern day version

Ellen Learmonth has been active in digital media for over 14 years covering all disciplines of online marketing with strong expertise in acquisition and affiliate marketing. She is passionate about innovation and new technology with a strong drive for creativity. Her 2006 World Cup Campaign earned two prestigious creative design awards at the New York Festival (Bronze) and The International Davey Award (Gold). Now living in London, Ellen is lending her expertise to some of the major gaming operators.

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Given that the average player will visit a page and decide within a matter of seconds whether to click further is going to be a challenge, so what are the basics?

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June infinity magazine