October infinity gaming magazine

HEADLINES

HEADLINES

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

HEADLINES

Golden Nugget receive NJ online license

Secret investor in Ladbrokes as speculation mounts

InfinityGaming

www.gaming-awards.com | ISSUE OCTOBER 2013

GOLDEN NUGGET

Enters online gambling

MELCO CROWN ENT

Want to get into Japan casinobusiness

EXCLUSIVE

Richard Noble Interview

JIM RYAN IS BACK

Find out where

LATVIA REVIEW

What is going on in Latvia?

contents InfinityGaming

EDITOR’S LETTER

03 Interview Richard 04 Noble EDITORS LETTER

Welcome to the Oct edition

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We spaek to the COO of Aspers

the man 12 AwhoG Burnett regulates Nevada Bad day for Sheldon 19 Adelson Not the best of days for the boss of LVS

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Jim Ryan is back!

Former CEO of bwin.party is back

FEATURES Thakor08 Christina Rankin Our latest feature writer

22 and 28 Reviews Reputations

A tale of two cities Professor Nelson Rose - Part 2

04

Martin R. Baird

32 Affiliate Conferences online 36 Latvia gambling - is it worth it?

Ellen Learmonth

InfinityGaming • ISSUE OCTOBER 2013

A review of online gambling

02 2

40 A submission 51 UK Government news Gaming Awards 52Latest News J J Woods

Slots & FOBTs

Find out the latest

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EDITOR’S LETTER Lana Thompson - Chief Editor

by

InfinityGaming

Welcome to the October edition of the Infinity Gaming Magazine and this month we welcome our latest new recruit to our superb writers rosta, Christina Thakor-Rankin.

If you do not know Christina and work in the online gaming industry, where have you been for the last few years?! Well Christina kicks off her articles this month with a look at Australia.

Also inside this month is an exclusive interview with Richard Noble the COO of Aspers Group in the UK, discussing the latest opening for the company, Aspers Milton Keynes. Also we have a chat with Mr A G Burnett the Chairman of the Nevada State Gaming Control Board, with all thiat is going on there and how

online poker is progressing.

As you all know there is just a few days left for nominations for the 7th International Gaming Awards.

If you haven’t nominated yet, hurry up, or you could miss out on winning the prestigous Star Award.

I want to thank our wonderful contributing writers this month, they have really excelled themselves in all the articles.

Next Month we will have eclusive interviews with Jim Ryan and Lawrence Ho. Have a great month Enjoy

Lana x

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

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

JOIN US

BUSINESSMAG • ISSUE OCTOBER 2013

EDITORS NOTES

CONTRIBUTING WRITERS Christina Thakor-Rankin Martin R. Baird Rohin Malhotra Ellen Learmonth J.J. Woods

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EXCLUSIVE INTERVIEW

The Casino MK based in Milton Keynes is the latest development by The Aspers Group

Q Richard thank you for speaking to us today can we start for our international readers by explaining who Aspers Group is?

RN Aspers Group is a straight 50/50 joint venture between Damian Aspinall, Aspers Chairmand & CEO, and Crown Limited, one of Australia’s largest entertainment groups who own and operate Australia’s leading premium casino resorts, including Crown Casino in Melbourne and Burswood in Perth. Aspers Group operate 4 casinos in the UK, tow 1968 licence casinos in Newcastle & Northampton, and the only two 2005 Act License casinos operating in Newham and Milton Keynes.

Q How long have you been COO of the company?

RN I became COO in September 2008, so just over 5 years now.

Q Your latest casino opening at Milton Keynes, how has business been in the few weeks so far?

RN We opened Aspers Milton Keynes on 5th September, and trading has been very strong. Over 2000 visitors per day, and double that figure a weekends. Revenues have exceeded forecast so we’re naturally very pleased.

Q Aspers says that the majority of customers do not even gamble when they come to MK Casino, is the focus more on entertainment and hospitality to attract large scale numbers there?

RN That’s right, roughly about 35% of our visitors don’t gam-

ble. What Aspers have been extremely successful with is modernising casinos and making them more accessible to a wider audience. For example, we were the first operator to remove membership, so anyone who looks over the age of 21 can just walk straight in. Our stylish bars become destination venues in their own right. People visit an Aspers property for the overall experience, not just to gamble.

Q There was a lot of competition to win the license how long did the process take?

RN The competition was a 2 stage process. Operators interested in bidding for the license had to make an initial submission at Stage 1 by 30th April 2011, with more detailed Stage 2 submission required by 21st October 2011. Applicants were then required to make a presentation to Milton Keynes Council followed by a couple of Q&A sessions. The Council then announced its decision in April 2012, so the main process took just over a year.

Q That is the second major win in licensing with the Stratford license also, without giving too much away of course does Aspers have a different strategy on presentation for applying for licenses?

RN There are a number factors which combined enabled us to secure both licenses. Deliverability was key; we had the best location, the best development, and we believe we

Interview

with

Ricahrd Noble

The Infinity Gaming Magazine speaks to Richard Noble the COO of the Aspers Group while visiting the new casino in Milton Keynes - The Casino MK.

are the best operator. We listened very closely to what each local authority wanted from a new casino development and ensured our business model and bid reflected this. In Newham, for example, job creation was a ket objective, so we committed to local jobs for local people, and now employ more than 650 staff of which over 400 were employed from Newham. Milton Keynes were keen to see funding for their regeneration projects as soon as possible; we had already agreed to make a financial contribution of a £500,000 minimum per annum once we opened, and then agreed to pay 3 years in advance.

However, ket to both Councils was to ensure they chose a responsible operator, and we pride ourselves on a proactive approach to socially responsible gaming.

Q On Stratford now the Olympics have moved on, how has business been?

RN Stratford’s business has grown from strength to strength.

We have now been open for 20 months, and have already extended the casino twice. We opened Stratford with 37 gaming tables, 20 poker tables, 92 electronics and our maximum compliment of 150 slots. We now have 57 gaming tables, 45 poker tables, and 150 electronics. Attendances continue to grow on a month by month basis, and we now see over 32,000 visitors a week.

Q The company now has four casinos with Northampton and Newcastle, are there plans to expand on that, have

you got any new applications awaiting approval?

RN We have a 1968 license in Bournemouth that we may consider activating. We’re also keeping an eye on the 2005 license in Southampton. Unfortunately unless the Government consider harmonisation of licenses and increase the number of slot machines in a 1968 license, or tackle portability then the UK has limited opportunities.

Q What sets Aspers apart from their competitors?

RN From the conception of Aspers 10 years ago, it was the clear vision of our chairman Damian to modernise the UK gaming industry. When we opened Newcastle in 2007 we clearly demonstrated this vision and created a property that became the talking point of the industry.

We’ve raised the benchmark again with both Stratford and Milton Keynes. We want our casinos to be accessible and were the first operator to remove membership in May 2008. In fact, 35% of our visitors are now female.

Our business model is based on high volume and our average spend per visit ranges from £15-£30, no different to a night out at many leisure activities. We pride ourselves on high levels of customer service and challenge ourselves to find new and innovative ways to delight our customers. Councils have recognised this fresh approach and can see that our properties attract a wide variety of people who enjoy the leisure & entertainment facilities on offer at a modest cost.

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RICHARD NOBLE INTERVIEW (CONTINUED)

culture, not just a name and is the DNA of everything we do. Customers have a higher expectation when they visit an Aspers casino and we strive to exceed this on every visit.

Q Aspers were very proud to win the Socially Responsible award at the last International Gaming Awards, how serious does the company take their protection of problem gamblers?

RN It’s important to point out that for the vast majority of our customers a visit to an Aspers casino is a fun and enjoyable experience. However for a small minority, where gambling becomes a problem, it is paramount that operators do all in their power to help these people. All Q Aspers is in a partnership with Crown Entertainment in our employees are trained to identify anyone who may Australia, how did that partnership come about? display signs that gambling is not an enjoyable experiRN Our chairman, Damian Aspinall, and Crown’s chairman, ence and our managers are trained to interact and, if James Packer, have been friends and colleagues for a need be, exclude them from the casino and guide them number of years. When the 2005 Act was announced towards organisations who can help them. However, and there appeared to be an opportunity for regional problem gambling exists across numerous gaming facasinos, it was a natural fit that these two successful cilities, including online, and it’s important that we work businessmen would join forces. The Aspinall family have as a community to assist. Wherever Aspers has a casino, operated casinos since the 1960s, with Damian’s father we set up a forum called CARG (Community Action for holding the first ever UK license. Crown brought their Responsible Gaming), which is indevast international experience with their I believe the pendantly chaired by Graham White resort casinos to the partnership. challenge in the UK (OBE), ex Gambling Commission, and is the over-restrictive invite interested people from local Q Does Crown involve themselves with legislation and a lack authorities, religous bodies, schols, design and style of a new casino here, or universities and charitable bodies is that left to the UK partner? of opportunities for to discuss ways in which the comRN Crown has significant resources which future developments. munity can help problem gamblers. we can draw upon to assist us in any Gala had not invested In answer to your question, we take aspect of the business, which we take this responsibility very seriously. advantage of from time to time. Crown in their properties has assisted in design but the overall which I’m sure will Q In the future what will customers project is managed by our UK team. change under Rank’s want and emand from their casino visit? ownership.

Q How do you see the UK market presRN Customers should always expect ently with Gala Casinos now bought by a high level of customer service, a Rank, is there more pressure on smaller safe and secure enviroment and a range of facilities and operators like Aspers? products to keep them entertained. As more people are RN I believe the challenge in the UK is the over-restrictive exposed to online and social gaming, we need to ensure legislation and a lack of opportunities for future develthat the product available in a land based casino comopments. Gala had not invested in their properties which plements that online. Indeed Aspers are soon to realise I’m sure will change under Rank’s ownership, however I an online offering from our company. I cannot say much don’t see this affecting small operators. about the project yet as we will not be launching till the early part of 2014, but the online business will carry the Q How important is branding for a casino company?

Aspers brand, it is a very exciting time for our company RN In the case of Aspers, the brand is our company. We have and will be able to give more details in the early part of endeavoured since day one to be different and offer a 2014. whole new experience to our customers. Aspers is our

BUSINESSMAG • ISSUE OCTOBER 2013

“

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FEATURE ARTICLE

From Kansas to the Land of Oz –

Is AUS the new USA?

By Christina Thakor-

Our new feature writer Christina Thakor-Rankin looks at the new land of opprtunity, Australia.

As the US seems a lock-out for many European operators Christina considers the possibilities for the land down under

S

InfinityGaming • ISSUE OCTOBER 2013

ince UIGEA, and despite other significant events such as regulatory changes in Europe and the phenomenon of social gaming, the industry never lost its focus on the US. It was touch and go for a while, but eventually, after seven long years of speculation, anticipation and expectation, the USA has finally taken its first tentative steps towards regulated online gaming.

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Sadly, and despite all the years of talking and hoping, the start of regulated markets in the US also heralded the end of the American dream in Europe. With a few notable exceptions, the land-based regulatory pre-requisites mean that for the vast majority of European operators, the USA is no longer an option.

As a consequence we have very little left to say about the land of

opportunity, but with William Hill’s acquisition of Tom Waterhouse, quickly followed by Ladbrokes purchase of Gaming Investments, in a country with an established culture of bookies and betting, home-grown talent pioneering social sports betting, equine super-star Black Caviar, raising the bar and profile of Aussie racing, the Socceroos qualification for the World Cup, and fierce debate about in-play advertising and pre-commitment, the land down-under is giving us plenty to talk about.

Whilst the recent moves by William Hill and Ladbrokes might suggest so, history suggests otherwise.

Betfair moved into Tasmania in 2005, followed by Paddy Power in 2009 via sportsbet.co.au, and more recently by Bet365, who acquired their Northern Territory licence in 2012. On this time-line, William Hill were actually fashionably late to the party, albeit quickly making up lost ground with their Sporting Bet acquisition giving them both SB Australia and Centre Bet, and Ladbrokes later still.

With a strongly embedded culture of gambling, figures indicating that over 80% of the adult population gambles, huge land-based casino complexes the size of several football pitches reportedly housing a fifth of the world’s supply of gaming machines it certainly raises the question - is the land of Oz the next big opportunity?

With rumours that both Ladbrokes and Bwin were also interested in Waterhouse, prior to their handshake with William Hill, Australia is clearly seen as an opportunity by some, but perhaps renewed rather than new interest would be a better description – and that driven by the lack of opportunity in the US.

are protected from online gambling operators.”, does not bode well.

door for regulated in-country online activity.

When it comes to other forms of This coupled with the recent ban on Whether this in turn leads to oponline gaming Australian operators in-play odds advertising, Senator portunities for European entrants or themselves cannot offer an online Xenophon’s re-election, figures sugmirrors the US approach of keeping service, although the national gesting that up to 500,000 Ausit in the family is impossible to say, government has seemingly turned tralians are at risk of becoming or but perhaps faced with so much una blind eye to Australian citizens usactually are problem gamblers and certainty, and the increasing cost of ing overseas online gambling sites a new administration keen to make entering newly regulated markets, - Australia’s self-proclaimed the best mantra for European most popular online casino operators for now is there’s When it comes to other forms of is based in Gibraltar. This no place like home? online gaming Australian operators is the shot-in-foot irony of themselves cannot offer an online Australia’s Interactive Gaming Act of 2001 – when it service, although the national govcomes to targeting Aussies ABOUT THE AUTHOR ernment has seemingly turned a online – you have to and Christina Thakor-Rankin blind eye to Australian citizens using seemingly can, do it from is Principal Consultant at outside Australia.

1710Gaming working with overseas online gaming sites. Ausstart-ups, investors, operasies most popular online casino is This was the state of play tors regulators, and industry based in Gibraltar. at the start of September. groups internationally, coverSince then the country has ing all aspects of the gaming gone through an in-play change of its mark, all make for a less than and gambling cycle - from initial manager, with a change of governencouraging outlook. research, licence and operational ment leading to a period of uncergo-live, to new markets and opportainty for operators and players Of course it could go the other way. tunities, to customer engagement alike.

The need to raise tax revenue may and experience. She has over 20 see Australia emulating the US in years industry experience and has Incoming PM, Tony Abbott’s a different way, with Mr Abbott’s previously held roles at William Hill, pre-election statement that, “The original statement changing to; Blue Square, Tote (Sport) and Virgin Coalition will investigate methods Australians need to be protected Games managing multiple business of strengthening the enforcement from ‘non-Australian’ online gamdisciplines, functions and teams. of the IGA and ensuring Australians bling operators, thus opening the

BUSINESSMAG • ISSUE OCTOBER 2013

What is also clear is that the opportunity is restricted to sports betting.

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InfinityGaming • ISSUE OCTOBER 2013

GAMING

Can Macau learn from Singapore?

The Las Vegas Sands who own the Marian Bay Sands casino resort in Singapore has an amazing 99% hotel room occupancy on their 2,500 bedrooms and still believe they can improve on that!

“Obviously at 99% occupancy in the hotel, we think we can sell a few more hotel rooms. So we’d love to increase our inventory of rooms,” MBS CEO George Tanasijevich said in an interview recently.

The idea in Singapore is to bury the gambling part of their business inside a mega resort, so not to rely

heavily on gambling and also to include and involve the whole family in the resort experience, something that Japan and even Vietnam are looking at closely as they consider their own ventures into the sector.

The strategy is to avoid being biased in relying on gambling only to make money and in essence is the Las Vegas way.

In recent figures published 25% of $1.3 billion in revenues from the Singapore resorts are from nongambling streams, compared to only 10% in Macau.

Gentings resort in Singapore enjoyed 1.7 million visitors in the second quarter of 2013 of which most of them were families enjoying the Universal Studios experience and where were these visitors from? Malaysia, Indonesia, China and India, all of which Macau is losing out on.

In 2012 Singapore enjoyed a 50% rise in tourism because of the new resorts to more than 14 million visitors.

The most telling difference between Singapore and Macau is the allocation of gambling floor space, in Singapore it accounts for 5% of the total space, in Macau it can be as much as 20% of total floor space given to gambling, however revenues are still greater in Macau overall the Chinese government is concerned that once gambling revenues top out where will revenue increases come from without more tourism focussed amenities?

In order to increase tourism in Macau the authorities there now are allocating gambling tables to the amount of space given to tourism in an attempt to increase that sector, meaning that the more non-gaming facilities an operator has the more gambling tables allowed.

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an Singapore show Macau how to increase their hotel and tourism business? Certainly yes is the short answer, with the Chinese Government concerned

by Macau’s consistent reliance on gambling and not enough on family friendly vacations and tourism in general.

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EXCLUSIVE

Interview with A G Burnett Chairman Nevada State Gaming Control Board

With Nevada being the first state in the US to enter the online gambling sector the Infinity Gaming Magazine speaks to the man responsible to ensure the new industry is regulated. We speak to A G Burnett, Chairman of the Nevada State Gaming Control Board.

Q

InfinityGaming • ISSUE OCTOBER 2013

: Dear Mr Burnett thank you for speaking to us today, can we start off for our readers by explaining to them your role and what the Nevada State Gaming Control Board (NSGCB) purpose is?

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AGB: I am the Chairman of the Nevada State Gaming Control Board, appointed by Governor Brian Sandoval in October 2012. The Board has over 400 employees, and it has six Divisions: Investigations, Administration, Enforcement, Audit, Tax & License, and Technology. We regulate gaming in the state of Nevada on a day-to-day basis, and investigate and license all individuals and entities that take part in gaming here.

Q: You have quite recently taken up the role, what was your previous experience?

AGB: Previous to being Chairman, I served as a Board Member. Before that, I was Deputy Chief of the Board’s (then) Corporate Securities Division, which was later blended into the Board’s Investigations Division. I am an attorney by trade, and started out in a law firm in Reno

Nevada. I also served four years in the Nevada Attorney General’s Office, Gaming Division.

Q: How long has the NSGCB been established and what was the remit when it was founded?

AGB: The Board was established in 1955. It was established then for the same purpose it serves now—to offer strict regulation of gaming establishments and entities, and to regulate gaming in Nevada. It, along with the Gaming Commission, was preceded in Nevada by the Tax Commission, but in the early 50’s it was determined that separate independent regulatory bodies were needed to establish that strict regulatory format.

Q: How do you think the Board has changed over the years?

AGB: The Board undergoes change in that it shifts to accommodate the issues before it. In other words, the Board itself, and its staff, have always consisted of well trained highly-competent individuals that work

The man in charge of regulating Nevada

Q: What are the main duties of the board on a day to day basis?

AGB: Regulation of all gaming establishments in Nevada, monitoring of our licensees’ activities both within Nevada and outside of Nevada, and enforcement of the gaming laws.

Q: Las Vegas has changed so much over the last 40 years, being now a corporate entity as opposed to single owners and much documented shady characters, do you think with that some of the character of Las Vegas has gone?

AGB: I think the character has changed. 40 years ago, the character was much different. But it has evolved, and morphed over the years into different things. Las Vegas still has a ton of character— more so than any other gaming city.

The character is definitely not gone; it is evolving.

Q: There is now online poker in the state with two companies now live, how is that progressing and has the NSGCB had to increase its workforce to cope with this new gambling element?

AGB: It is progressing well. The two operators have done a great job in their rollouts and I am anxious to see them perform well. Much is incumbent upon them at this point. The Board and its staff have treated internet gaming in the same fashion as we have treated other items in the past. We have embraced it, carefully studied it, and once the decision was made that it was acceptable and appropriate to do so, we began determining how we should regulate it. That doesn’t happen over night or within a few months’ time. It has taken years. I myself have been looking at online gaming now for over five years—many of our staff members have been looking at it for longer than that. That’s one of the things that makes me proud to be a Nevada regulator.

Q: How did the NSGCB handle this new business, did you use European expertise to advise you?

AGB: We consulted with European regulators and operators, and we spoke with European experts that have been in the legal community advising the operators. We sent staff overseas to meet with those individuals and we internally set about discussing how we address issues present in the industry into our regulatory model.

Q: What are the challenges for the NSGCB now and in the future to protect and ensure gambling in the

state is fair and legal?

AGB: We need to continue what we already do in the land-based casinos, in monitoring and approving the games that go onto a casino floor. The same is true with online operations. We need to have a thorough and strict vetting process prior to a game’s deployment with customer protection foremost in our minds. Customer protection means protection of Nevada.

Q: Is this one of the most demanding role you have ever had?

AGB: Other than father, this is by far the most demanding role I have ever had. My job is 24/7. I love it because of the challenges it presents on a day to day basis. I love it because of the great people I work with. I find it stimulating intellectually and rewarding at the end of the day. It is extremely difficult, but in the end, I realize that we can only do the right thing.

(Continued overleaf )

BUSINESSMAG • ISSUE OCTOBER 2013

extremely hard at what they do.

Part of what we do, however, What has changed are the areas of focus, and needs for expertise dependent upon the “issue du jour.” We’ve encountered hostile takeovers, mergers and acquisitions, bankruptcies, online gaming, on and on—and always embraced the questions, become conversant in the issues, and made decisions for the State’s betterment.

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A G Burnett Interview continued Q: Japan have recently set out plans on their own possible entry to casinos and gambling, with quotes saying they prefer to organise their control similar to the Nevada board model. Does the NSGCB work with other countries to advise them on controls and checks for the gambling business?

AGB: Yes. When a new jurisdiction wishes us to help them get started, we absolutely answer the call. We realize the risk is that a jurisdiction simply copies what we have done in the past, but in the end, that should be something we accept, if we are proud of our model. After they are up and running, we work with the jurisdiction to share relevant information for the betterment of our two agencies.

was not much of a gambler beforehand though—I wasn’t any good.

Q: Before we let you go Mr Burnett, something we are asking all our leading interviewees, what are the top five apps you have on your mobile?

AGB: 1. Strava (records my cycling and running via GPS) 2. Drudge Report 3. Starbucks 4. iTunes U 5. FaceTime

“

When a new jurisdiction wishes us to help them get started, we absolutely answer the call. We realize the risk is that a jurisdiction simply copies what we have done in the past, but in the end, that be something we accept.”

Q:Are you allowed to gamble yourself in your role with the NSGCB?

A

bout the Nevada State Gaming Control Board

The Nevada Gaming Commission and the State Gaming Control Board govern Nevada’s gaming industry through strict regulation of all persons, locations, practices, associations and related activities. We protect the integrity and stability of the industry through our investigative and licensing practices, and we enforce laws and regulations, while holding gaming licensees to high

standards. Through these practices, we are able to ensure the proper collection of taxes and fees that are an essential source of revenue for Nevada.

Our reputation has been built on a philosophy that gaming, when properly regulated, can thrive and be an important contribution to the economic welfare of our state. Our agency’s reputation has been built around a philosophy of consistent legal, ethical and fair-minded practices and actions. Our reputation

has also been established through highly rigorous standards for licensing, suitability and operation. Maintaining a balance between rigorous standards for the industry and the kind of flexibility that permits innovation and prudent expansion is an overarching goal that guides not only our day to day decision making, but also our consideration of changes to regulations and statutes.

Visit the organisation here: http://gaming.nv.gov/

BUSINESSMAG • ISSUE OCTOBER 2013

AGB: No. I haven’t gambled since the day I started at the Board. It’s been almost 16 years. I

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GAMING NEWS

Wynn & Caesars do deal for online business in New Jersey

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umours coming out of New Jersey say that Wynn Interactive have made an agreement with Caesars to house online servers for Wynn in their Atlantic City casino.

According to a source close to the business in a Bloomberg report Wynn will use Caesars land based casino in the state to run online gambling.

Online gambling laws in New Jersey do allow for any land based casino operator to house multiple servers for different online operators. This was confirmed by David Rebuck, director of New Jersey’s Division of Gaming Enforcement.

“On one side of the room ABC company can have its server, next to it can be a server from another company,” Rebuck said at the G2E Conference.

Both Caesars and Wynn are using online gaming operator 888 Holdings for the technical back office and server support and Wynn Resorts does not have a land based casino in New Jersey, so it would be the most cost effective option for Wynn.

There has been further speculation that if this deal is correct then both companies which will fighting over a casino license in Boston next year have come to an arrangement for

that license in return for housing servers in New Jersey.

Currently neither 888 Holdings would say where Wynn’s servers will be housed and Caesars and Wynn themselves are refusing to comment on the news.

Mr Green sponsors charity focussed IGA7

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InfinityGaming • ISSUE OCTOBER 2013

lever Duck Media are delighted to welcome Mr Green as a charity item Sponsor for the 2014 International Gaming Awards Ceremony. The ceremony will take place at The London Savoy Hotel on 3 February 2014 and will be judged by 29 global industry experts.

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Colin Thompson the organizer of International Gaming Awards commented: “We are very glad to have the support of Mr Green as our charity Sponsor. Mr Green is an Award winning highprofile online casino offering a wide variety of games.

The previous year Mr Green sponsored our charity item and as a result we had a sparkling Chopard diamond necklace to raffle in support of Care International and raised over £5000. We will keep you posted with the

raffle prize for the upcoming event, all we can say it will be once again be dazzling and unforgettable. We would like to take this opportunity and thank all our sponsors for their kind support of our charity gala event.”

For more information on the Gaming Awards visit: http://www.gaming-awards.com

GAMING NEWS

$2.6 billion spent in online gambling in US last year

The AGA said it highlights the need for federal legislation to end the state of “ambiguity” on Internet wagering. The study shows even while still illegal the US makes up a large proportion of the global $33 billion online gambling market.

Geoff Freeman the Chairman of the AGA said, “Americans account for nearly 10% of the global online gaming marketplace at a time when the business is illegal in all but three American states.

It is past time for policymakers to put necessary safeguards in place.” The association supports federal legislation to regulate online poker in the United States, but calls for “strong enforcement” against most other Internet gambling that ends the “ambiguity” of US law.”

Interestingly online poker usage fell in the US from $1.6 billion in 2006 prior to the UIGEA came into being to last year’s figure which was $219 million. US online operators in Nevada, New Jersey and Delaware will be hoping that figure rises now state are legalising online gambling again.

Prior to the UIGEA in 2006 Americans were spending $5 billion a year in online gambling.

King to float on US Nasdaq

The makers behind the hugely popular Candy

Crush social game King are going to be a public listed company after filing IPO papers in the US, valuing the company at $5 billion.

The British based company will float on the Nasdaq exchange with many analysts saying it will be the biggest technology IPO in recent years.

King has lodged its pre-IPO “S-1″ filing with the Securities and Exchange Commission (SEC), which allows for a loophole for rapidly-growing businesses such as Twitter to keep its IPO confidential.

Although there has been now official announcement on the move and indeed estimated revenue from the IPO, with King turning over £300 million in 2012 and still growing this year, the value of $5 billion is not unrealistic.

BUSINESSMAG • ISSUE OCTOBER 2013

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2.6 billion was spent by Americans last year in online gambling although illegal in 2012 in every state there, the latest study that was conducted

by H2 Gambling Capital and announced by the American Gaming Association (AGA) to push for federal government to legislate for a nationwide online gambling law.

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WORLD NEWS

Bad week for Sheldon Adelson

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heldon Adelson has not had a good week, firstly he lost his fight against Richard Suen and ordered to pay $70 million.

The court battle with the Hong Kong businessman goes back nine years when Mr Suen is said to have helped in securing a gaming license for Sands in Macau, to which the company was supposed to pay him $328 million.

The Sands lawyers said that Mr Suen did not deserve any payment as he did not come through with making good on his promise in delivering the license, the jury disagreed, however it is already expected to go to appeal, so Mr Suen will not be seeing that money any time soon.

On another separate case, involving Mr Adelson suing the National Jewish Democratic Council for $60 million regarding an article on its website saying that the casino mogul condoned prostitution in his

casinos in Macau.

The website article then went and tried to persuade leading republicans looking for donations from the well-known supporter not to accept as the money would be “dirty” and “tainted” money.

It cited reports about an accusation that the Las Vegas Sands Corp chief executive “personally approved of prostitution” in his Macau properties.

U.S. District Judge J. Paul Oetken in Manhattan on Monday said the article constituted protected speech and was not libelous. The accusation, which Adelson has denied, had surfaced in a wrongful termination lawsuit against him by fired Las Vegas Sands executive Steven Jacobs.

It was discussed in an Associated Press article about that lawsuit, to which the NJDC provided a hyperlink in its article online.

He will replace the former president of the IAGR, Susan Hensel who was also the director of licensing for the Pennsylvania Gaming Control Board.

The position Mr Meng takes up is one a rotation basis and lasts for one year, the organisation is made up of global gaming regulatory bodies.

Lau Peet Meng has been named as the new President of the International Association of Gaming Regulators (IAGR). Previously Mr Meng was CEO of Singapore’s Casino Regulatory Authority in which he was appointed in 2011.

In the same statement, the IAGR said it signed a memorandum of understanding (MOU) with the Great Britain Gambling Commission in Oslo, Norway on Sept 30. The MOU reaffirms the commitment of both parties to collaborate in areas such as information and knowledge sharing, exchange visits and training opportunities.

BUSINESSMAG • ISSUE OCTOBER 2013

New president named at IAGR

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NEWS

Judy Paterson one of the joint founders of the American Gaming Association (AGA) is stepping down from her role with the association as Senior Vice President and Executive Director.

In 1995 when the AGA was founded with Frank Fahrenkpf the former President of the AGA who retired earlier this year, Patterson was instrumental in the setting up of the organisation.

Previously she worked as special assistant to the president of the American Bar Association, there has been no reason for the resignation that has seen major changes this year with the retirement of Fahrenkopf and now Patterson.

New President of the AGA Geoff Freeman now has the task of driving the organisation without another of its leading lights.

Freeman in his statement announcing her resignation said that she had been a key player in the AGA’s major expo & other initiatives tackling issues as diverse as regulatory reform, taxes, bank secrecy act provisions, communications & responsible gaming.

Rank announce profit warning

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he Rank Group has said that its poor performing Mecca bingo division has impacted on their six month results predictions ending December this year, warning that results will be lower than expected.

The UK based company that is the largest casino owner in the UK after the purchase of Gala Casinos and majority owned by Malaysia’s Guoco Group says it will have to look at cost cutting measures after revenues

fell by 7% in the 15 weeks ending 13th October.

However Ian Burke the CEO believes that the company will turn around those half year results following the purchase of the 19 casinos from Gala in the second half of the year running till June 2014. Rank has a total of 55 casinos now after purchasing 19 casinos from Gala for a deal worth £179 million. “The board anticipates operating profit for the full year to be margin-

ally below market expectations,” Rank said, adding that the first half would be “materially below” the £33.4 million for the same period last year.

In total Rank owns 97 bingo clubs in the UK and blames much of the declining profit from the division on the particularly high heatwave in July of this year, also the companies online bingo offering was also down 3% citing strong online competition.

KEEP UPDATED FOLLOW US ON

BUSINESSMAG • ISSUE OCTOBER 2013

AGA senior VP resigns from organisation

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FEATURE ARTICLE

A Tale of Two Cities, Macau and Las Vegas Part 2

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

On June 27, the U.S.–China Economic and Security Review Commission held a hearing in the U.S. Senate Office Building on developments in Hong Kong and Macau. The second panel focused on “Money Laundering in Macau and Implications for the United States.” I was asked to testify, along with A.G. Burnett, Chairman of the Nevada State Gaming Control Board, and James H. Freis, Jr., Former Director of the U.S. Treasury Financial Crimes Enforcement Network (FinCEN). This article is an expanded version of my written and oral testimony. It is based on some of my prior published writings, including “China’s Gambling Problem,” “Does Macau Create Legal Risks for American Operators?” “Victim Of Its Own Success.”

Part 2 of Professor Rose’s must read article on Macau & Las Vegas

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hese are the dozens of both small and large casinos that operate under the SJM concession, but with no actual oversight by SJM. It is commonly known that SJM has, in effect, issued sub-licenses: for a share of the casino revenue, believed to be 15%, these legacy casinos operate as completely independent casinos. Some of the actual owners and operators of these casinos would never receive a license from regulators as strict as Nevada’s. They know this, so they do not ever ask to do business with Nevada’s licensees.

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The casinos that are not licensed by Nevada and other American states are also willing to do business with VIP gaming promoters who have ties with organized crime.

The high-rolling VIP players from the Mainland are by far the most important contributor to Macau’s casinos’ revenues. But the PRC has put severe restrictions on the ability of Mainlanders to take cash into Macau. Macau casinos can now directly lend money to their players, but those gambling debts are legally unenforceable in the PRC. And Chinese Mainlanders like to do business with people they know personally. So the VIP gaming

promoters and their agents and subagents have been tremendously successful in getting Mainlanders, and their money, into Macau’s casinos. And the threat of force has allowed disreputable VIP gaming promoters to collect almost all of those debts.

Some of the casino companies not licensed by American states go much further in their relationship with VIP gaming promoters. There are high-roller suites in some casinos that are completely run by the VIP gaming promoters. These usually consist of two or three baccarat tables, a cashier’s cage and a small kitchen area, all with employees of the VIP gaming promoter, not the concession-holder. It is as if the casino operator issued a sub-license or sublease to an individual or organization that never applied for, let alone was approved for, its own concession from the government of Macau. These VIP gaming room operators are, in all respects except the name on the concession, separate and independent mini-casinos.

Nevada- and other U.S. state-licensed operators -

naturally do not have similar arrangements in their Macau casinos.

They do use VIP gaming promoters to get players, to make loans to patrons, and even for some cage and reporting transactions. Since 2004, casinos have had the legal right to loan money directly to their patrons. But casinos were not allowed to take bad debts off their taxes, greatly reducing a Macau’s casino’s incentive to lend money to a patron. More importantly, although Macau casinos would greatly prefer not to have to share the patrons’ gambling losses with VIP gaming promoters, Chinese Mainlanders want to do business with individuals they know, so casinos do have to continue to rely on VIP gaming promoters to get high-rollers to the casinos. But the games are always dealt by the U.S. statelicensed operators’ dealers. And being licensed by a U.S. state, these casino companies cannot be doing business with individuals who are unsuitable. They are required to do due diligence investigations of the background, funding and operation of the VIP gaming promoters they do work with in Macau.

The question remains whether there is a need for additional federal oversight, by administrative agencies like the SEC or FinCEN, or restrictions from Congress. I admit that I was surprised when Nevada approved its licensees to open casinos in Macau. A casino insider told me in 2004, before the Sands, the first American casino, opened that they had asked the Macau Chief of Police about hiring off-duty officers as security guards. The Chief’s response was, “If want guards who

aren’t corrupt, don’t hire any of my men.” This is not the type of system that inspires confidence.

Casino gaming is primarily a state issue. Despite the occasional horrible headline, I think Nevada has overall done a pretty good job of keeping its licensees clean. And this is in light of the practical impossibility of knowing what is actually going on in the Mainland.

I think major factors have been the operators themselves. The licensees are frankly too smart to knowingly get into bed with organized crime.

Macau might not pull their licenses for having dealings with tainted VIP gaming promoters, but Nevada would. And if Nevada won’t, then New Jersey and other states will. As a dramatic example, Macau gave Stanley Ho a concession; New Jersey pulled MGM’s license for being in partnership with his daughter.

And losing a license could mean the company might not be able to do business anywhere else in the

world. The existing federal laws are probably adequate for handling the worst problems that might reasonably arise with an American casino in Macau. The Foreign Corrupt Practices Act has real teeth, and it covers any company with stock traded on an American exchange. In addition, as we have seen in recent years, there is always the possibility of civil suits if an American employee or shareholder feels casino executives have been involved in wrongdoing.

I don’t think there is much the U.S. can do about the other regulatory system in Macau, the legacy casinos and VIP gaming promoters who work in conjunction with casino operators who are not licensed by Nevada. The U.S. simply does not have the right, or power, to interfere with the sovereignty of Macau and the PRC. It can assert political pressure, and Macau does react to such pressure, usually by slowly added more controls. But the political leaders of Macau, like those anywhere, are sometimes offended by what they

BUSINESSMAG • ISSUE OCTOBER 2013

Best and worst of times for operators

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(Continued)

A Tale of Two Cities, Macau and Las Vegas

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InfinityGaming • ISSUE OCTOBER 2013

ee as outside interference, which can slow down reform.

It is even unclear whether gaming in Macau creates much of a risk to the United States. It does appear that VIP gaming promoters are violating the PRC’s restrictions on currency transfers, and probably other PRC laws. But the American state-licensed operators do not knowingly do business with the most disreputable promoters. And the money-laundering may be only technical violations. The VIP gaming promoters are mostly interested in getting patrons from the Mainland to Macau, for a share of the gambling losses, and in lending their customers money at usurious rates.

This is shown by how negatively they are affected when the PRC tightens credit. The VIP gaming promoters do not seem to be involved in more conventional money-laundering, such as washing cash from illegal drug sales. And even with the billions of dollars they might be washing, there is no indication they are somehow trying to hide funds from North Korea or other sponsors of terrorism.

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The federal government, with help from the rest of the world, does have the power to influence China and Macau on specific issues like money laundering. Macau is a signatory to international agreements, and is, in fact, definitely getting tougher on money laundering. The minimum threshold for currency reporting is too high, at $62,000, where the U.S. threshold is $10,000, but thousands of currency transactions reports are filed by Macau casinos. Casinos are also required to file suspicious activity reports. And some of these have resulted in criminal convictions

of patrons attempting to misuse casinos for illegal purposes.

The government of Macau is constantly imposing more controls, including additional restrictions and background checks on VIP gaming promoters. And the market seems to be driving out many of the smaller, shadier operators; although, some of the bigger ones are companies that Nevada-licensed casinos still have to avoid.

Macau is by far the largest gaming jurisdiction in the world. This year, the casinos in this Special Administrative Region of China are projected to win more than all of the privately owned casinos in the United States – about $40 billion. And Macau is not only smaller than the U.S., or Rhode Island; even with its reclaimed land, it would fit inside the District of Columbia six times over, with room to spare.

Imagine how much gambling there would be if it were 100% legal.

The casinos are not necessarily violating any Macanese laws.

But restrictions in its main feeder market, Mainland China, mean that inevitably some laws are being broken by individuals and companies who have made this small gaming enclave such a success.

It starts with the patrons. It is against the law for anyone from the Mainland to take out more than 20,000 yuan renminbi, or about US$3,150, in cash. That’s less than $25,000 in Hong Kong dollars: A typical bet in the high-roller rooms in Macau casinos. But casinos are a cash business. So, somehow, Mainland Chinese are getting billions of dollars in cash across the border.

One of the most common ways for Mainland players to get their cash to Macau is through straight smuggling. One Macau executive told me about a farmer who walked into his casino in dirty, torn clothes and took HK$50,000 in cash out of his sock.

After he lost it, he took another HK$50,000 out of the other sock.

Mainland Chinese like cash, and they don’t trust banks.

Professor Rose looks back at the history of Macau

Guards at most border crossings now just wave you through, if they are even there at all. Spot checks at Macau’s borders with Zhuhai and at the two ferry terminals and the Macau Airport are extremely rare. Players are coming to Macau to gamble.

They know they have a better chance of winning a life-changing jackpot on a slot machine than of losing a life-changing conviction for violating PRC currency laws.

Of course, wealthier visitors are also getting their money out in other ways. Stores in Zhuhai and other cities near the border provide money lending and cash transfer services. For a fee, they call their counterparts in Hong Kong and Macau, who meet the Mainland visitor in the casinos with any amount of cash the visitor wants. There may be no paper records. And a large operation does not even have to actually transfer the money across the border. It simply keeps millions of dollars in cash on the Mainland and in the SARs. Pawn shops have always been associated with casinos. There does not appear to be any law against a

player intentionally taking expensive personal merchandise out of the Mainland and selling it in Macau for cash for gambling. The Venetian last year had an auction of extremely expensive ceramics, art and jewelry, with many pieces coming from “private collections.”

But there are a growing number of high-end jewelry and watch stores popping up in Macau, even as booths right on the floors of the casinos. These stores are not buying, but selling. At least, that’s what they pretend to be doing. What they are actually doing is transferring funds out of Mainland China.

The most common scam is to create a credit card sale of a very expensive item, like a watch. But no actual watch is involved. The seller gets a small percentage off the top, while the bulk of the money goes to the money-lender. The credit card sale may not even be recorded. It can be held, like a casino marker, for 24 hours so that it can be cancelled if the player wins.

This is done openly and blatantly.

During a recent trip to Macau I watched a player sign papers and

receive bundles of cash from a jewelry store located directly on the casino floor. No actual jewelry changed hands. The players are obviously getting the cash to use in the casinos while creating a credit card transaction that appears to have nothing to do with gambling and is thus enforceable under Mainline Chinese laws.

I had assumed that if the player won, he would return to the jewelry store with the cash to pay off the jewelry store before the credit card transaction went through.

But when I asked an insider with knowledge of this business, he told me that the jewelry stores are part of a much more complicated arrangement. There are third-party companies involved with the lending and shipment of money across the border. Operators do not want the Mainlander to pay off the loan quickly, because they are charging outrageous interest: sometimes 10% a month or more.

The concluding part of this intriguing review of Las Vegas and Macau in the November edition.

BUSINESSMAG • ISSUE OCTOBER 2013

They even buy houses with cash.

Of the 28 million visitors to Macau each year, more than half come from the Mainland. Not coincidentally, more than half also stay for less than one day. Millions arrive carrying shopping bags, and many of those bags have wads of yuans hidden at their bottoms. And not all the shoppers who cross the borders with Zhuhai, the connecting city on the Mainland, are carrying the cash only for themselves.

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GAMING NEWS

Melco Crown want in on Japan tegrated resorts in Tokyo, Osaka, the market could easily be in excess of $10 billion to $15 billion or more.”

Already casino operators such as MGM Resorts, Las Vegas Sands and Wynn Resorts has said they are interested in building casino resorts in Japan, even to the point of sending their representatives to scout for potential locations in the country.

M

elco Crown Entertainment has stated it will invest over $5 billion should it be given permission to develop casino resorts in Japan.

Should Japan open up to casinos it is believed that the country could become the second largest gambling market in the world.

James Packer and Lawrence Ho who between them operate the Macau based casino company are interested in building casinos in either Tokyo or Osaka.

“The potential is huge for integrated resorts in Japan,” Lawrence Ho said. “If Japan opens up and allows in-

Estimates have Japan to be worth in the region of $10 billion a year in gaming revenues, it has a rich population, it is a popular tourist location and also has secured the 2020 Olympic summer games.

Lawrence Ho has been busy lobbying several Japanese government officials in the hope of securing a license for Melco saying that, he sees “significant” non-gaming revenue for Japan as he doesn’t expect “visitors just come to the country and go straight to casinos. There’s so much to do, so much to see. Japan has a rich culture.”

All of the casino operators that have now stated an interest in Japan will work with local companies to build the gaming resorts and local groups to ensure social responsibility and reducing impact on the environment.

head external communications, Mr Smith worked previously for the Department of Culture and Media (DCM) last year before quitting during the Leveson Inquiry, in which Judge Leveson said Mr Smith “was diligent … to a fault” in his role at the DCM.

There were accusations during the Inquiry that Mr Smith had developed a close relationship with News Corp and its public affairs director Fred Michel during the failed attempt by News Corp to take control of BskyB. Those accusations were strongly denied at the time.

In his new role with Paddy Power Adam Smith will report to Catherine Colloms who is Director of Corporate Affairs at the company and was hired herself in January of this year.

Colloms said that Adam Smith “brings a wealth of experience and expertise from operating in Westminster and Whitehall”.

BUSINESSMAG • ISSUE OCTOBER 2013

Paddy Power hire Adam Smith Paddy Power have hired Adam Smith as their new

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ARTICLE

Casino Reviews and Casino Reputation: It’s A Whole New World Thanks to Social Media Our feature writer Martin Baird looks at scoial media for his October article and more importantly does customer reviews online really make an impact on customers decision making.

By Martin R. Baird

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t’s time gaming properties face the hard truth that casino reviews at social media sites are having a significant impact on their reputation and their marketing efforts. In fact, I would classify this as a sea change. And the damage is already being done.

In an era in which sites such as Facebook, Yelp and TripAdvisor are taking the place of traditional marketing tools, casino reviews and casino reputation play an increasingly important role. The idea that reputation spreads slowly through word of mouth is old news.

Casino review sites and social networking channels can spread a negative opinion about a casino around the Internet instantly.

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In the old days, a customer might tell seven to nine people about a negative experience, but the advent of social media has raised that number to as many as 53, American Express research has revealed. Today, the average Facebook user has 245 friends, according to Pew Research. By their own reckoning, more than 42 million reviews have been posted at Yelp and more than 100 million have been posted at TripAdvisor. Casino reviews are even showing up on YouTube. Research shows that 70 percent of consumers trust what they read on social media sites. Yes, 70 percent!

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I wouldn’t be surprised if there are guests posting comments right now while they are still on a casino floor.

They can and do rant about a poor experience before they even walk out the door. This on-the-fly posting is rampant. According to Mashable, 17.4 percent of global Internet traffic came through mobile devices this year as of late August. That’s a 6 percent increase over 2012, Mashable says.

The end result is that patrons pay much less attention to casino marketing, particularly advertising because it

is written for the casino and the property pays to have it appear. Basically, Internet users are rather dismissive of casino advertising campaigns. Reviews, on the other hand, are left by actual patrons of casinos who feel compelled by the service or product to post their thoughts. Casinos must take account of this new situation and adjust their customer service and marketing accordingly.

Google search rankings, the levels of trust consumers have in casino reviews, the nature of these reviews and the sites that maintain them – all of these are serious game changers for the casino industry.

Google (and other search engines) lowers casinos’ search rankings when negative customer comments appear on review sites. With Google, those unpleasant reviews appear next to the casino’s position on the search results page. That’s right, the reviews are there for anyone to read and they’re immediately to the right of the link to the casino’s website. That causes the casino’s reputation to suffer – whether or not the reviews are accurate. A rankled patron, even an adversary, can write a review and greatly influence a casino’s reputation and subsequent Google ranking.

Another problem with the relationship between negative reviews and Google rankings is that the lower a casino is ranked, the more difficult it is to find. We all know Google is the default tool that people use when it comes to locating things.

That means when guests look for information about gaming, casinos, entertainment, restaurants or weekend getaways, gaming companies want to be found as high up as possible and as often as possible in Google searches.

ARTICLE

(Continued) Unfortunately, negative feedback is difficult to overcome. Negative reviews drive patrons away from a casino. If casinos think they can sidestep this problem by paying for positive reviews, they should think again.

Purchasing of several positive reviews is detected by Google’s search bots and disregarded. Google discounts reviews when they arrive in unusually high numbers.

For example, if a casino usually gets 1.7 reviews per month and it tries adding three, Google could reject all of them because there were too many reviews.

There are some bright spots, though.

Honest assessments by customers are an opportunity that casinos can leverage. Many online comments are honest evaluations of the casino and they can point to steps casinos can take to improve. The failings a reviewer complains about may actually measure a casino’s success, providing it with a marker from which to continue to improve. If there’s a pattern to the comments, the casino has an opportunity to address real guest issues and concerns.

All of the above issues are important news because much of what casino management believed to be true of their marketing efforts has turned out to be wrong.

Even if they sensed the truth before, they have no idea how pervasive a review’s influence can be. As famed investment guru Warren Buffett once said, “It takes 20 years to build a reputation and five minutes to ruin 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 OCTOBER 2013

The other good news is that casinos can polish their reputation and improve their search engine rankings by doing two simple things. First, at a minimum they need to monitor what’s being said about them online and respond or make changes accordingly. They should also monitor their competitors’ online chatter. A better approach would be to have a third party do this for them and provide them with analysis and recommendations.

Second, improve customer service to the point that guests don’t even have a reason to complain at review sites. Don’t want people griping about lousy beverage service? Then make sure it’s done to customers’ satisfaction. What could be simpler than that? And the payoff could be wonderful!

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BUSINESSMAG • ISSUE OCTOBER 2013

AFFILIATE ARTICLE

Affiliate Conferences must attend?

By Ellen Learmonth

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ou know as well as I do that the affiliate conferences laid on by iGB are a must attend. Whether you are trying to push a brand or stay visible to the affiliate you’ve lost contact with, you have to attend the show. Regardless of any valid reasons you may have, failure to exhibit only leads to speculation by affiliate managers and affiliates alike that your brand is struggling financially.

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London, Barcelona, Amsterdam, Dublin, Prague, Budapest, etc. we have all been there. The minute you return from a conference you start organising the next one, but what do we really get out of them? Do we really need 3 or more a year? Does the concept still work? Let’s take a closer look:

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One of mine and almost everybody else’s favourite is the London Affiliate Conference (LAC). London is easy to get to and usually with a direct connection. Even outside of the conference, London as a city has plenty to offer (not least a cool reputation) that makes us turn up in droves.

LAC is by far the best visited conference. I am sure that both affiliate and affiliate manager feel that the long days, the late parties and the fixed smile on the face have been worth it when good byes are said at the wind down session on a Sunday. London was the first iGB affiliate event and London proved year after year that it is

the must attend event.

Now what about the others? The super-show was supposed to bring operators, affiliates and suppliers closer together. The suppliers were there to talk to the operators and the operators wanted to talk to the affiliates.

The concept was a good one, but with the best will in the world, didn’t really materialise. The blame was placed solely on the location which proved not to be as attractive as hoped. Operators stayed away causing concern that the event would be shelved, so the location was changed with some success. Amsterdam gave the conference a boost and I have fond memories of a very successful event. Not sure if the location or the fact that people came to reminisce about the old times when CAC was held in Amsterdam was to blame, but I guess we will find out next year if the attendance stays up.

Now Barcelona, a city loved by all and always a good destination to catch some sunshine before the winter chases the autumn away. This year on paper the attendance was high but the traffic for operators seemed low. Why was that? Maybe it was because the seminars proved to have increased in quality and attracted the affiliate away from strolling around the exhibition floor.

Maybe it was because affiliates really did come to visit

– What are the must attend affiliate conferences?

In the past I have been asked to attend, display, participate, judge and organise stands at various conferences, so my personal opinion counts in some quarters, so here’s my view. I think that it is important to attend and exhibit at affiliate conferences. The initial idea to create

times is nothing short of brilliant, however, for me the LAC at the beginning of the year would be the one that is a must attend and must exhibit event.

For the middle part of the year I would create a personal event to engage affiliates away from my competitors, one that would also allow for intercommunication between affiliates but exclusive for my brand. Then the event at the end is still of interest but the decision to exhibit or just visit would depend on location, layout and conference programme in order to make the most out of it. So in answer to the question: yes, it is important for various reasons to attend affiliate conferences but you must consider the value you take out of each one and the goal you have in mind to decide on your conference strategy. See you in London 2014!

this meeting space and combine it with fun & party ABOUT THE AUTHOR: 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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Barcelona and the parties with a lot of meetings held outside the exhibition walls. It could also be that the limited time in-between seminars were filled with the intake of beverages at booths that hosted an open bar.

These seemed to be clustered in one area holding most of the affiliates attention, so who knows. The general consensus was that the conference was a slow one but indeed still worth it if a couple of good leads materialize. Really? Do we need to exhibit and be happy with a couple of good leads?

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GAMING NEWS

New Zealand gambling reaches record levels

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ew Zealand has just stood out from the shadow of Australia in terms of customers gambling, with the news from the New Zealand Racing Board that their citizens spent an amazing NZ$1.96 billion ($1.31 billion) between July 2012 and July 2013. Most of the money wagered was in sports betting, horse racing and pokies (poker machines).

The New Zealand Racing Board which has the monopoly on gambling in New Zealand reported that profits for the year ending July 2013 were up 13.2%, representing NZ$144.1 million. As part of the Boards requisite of donating its profits back into the industry NZ$142 million will be ploughed back into horse racing to support the sec-

tor and NZ$5.7 million to increase sporting activities in the community.

“We’ve achieved these results despite increasing offshore competition, and a lack of major sporting events in 2012 and 2013 to offset the positive impact of Rugby World Cup in the prior year,” New Zealand Racing Board chairwomen Glenda Hughes said.

Caesars Entertainment has just sold over 10 million of its ordinary shares to Swiss banking giant Credit Suisse for $200 million. The sale is part of the gambling companies efforts to raise $4.4 billion to pay back old debts that are due for payment at the end of this year.

As part of the agreement Credit Suisse has 30 days on an option to buy more than 1.5 million more shares from Caesars, which it is understood they have already purchased some 340,000 of those ordinary shares at $19.4 a share, generating an additional $6.6 million.

It is also understood that the casino giant has recently secured a new loan of $3 billion and revolv

ing credit of $269.5 million which it will use to drive down that $4.4 billion debt hanging over the company for repayment due by years end. The casino operator which has total debts of $23.5 billion has for some time been rumoured to be considering bankruptcy protection, but seems intent on fighting that option.

BUSINESSMAG • ISSUE OCTOBER 2013

Caesars sells shares to Credit Suisse

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LATVIA REVIEW

Latvia online gaming – is it worth it?

Knowing how to conquer social media in the world of gambling can really help your bottom line, but really how many know the tricks of the trade? In our September edition of Technology we offer some expert help to both land based gambling companies and online operators.

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nline gaming was legalized in Latvia in 2003.

Latvijas Loto has been offering its services online since 2004. Optibet Ltd., a totalizator company, is the other operator to hold a license in Latvia.

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The first games of chance in Latvia were organized and the gambling market began its rapid development in early nineties due to the regaining of independence. In the summer of 1991 the first casino was registered in Latvia. Many small companies were involved in the organization of lotteries and gambling, who could not always ensure the organization of these games at the necessary level. Therefore the gaming business was discredited and the player suffered, as well as the revenue in the state budget from lotteries and gambling was very small.

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The new Latvian gambling law of 2013 brought some relevant changes that make Latvia follow in the footsteps of its more liberal neighbour Estonia. The new law focuses on updating the previous online gambling regulations including a 5% tax on gross revenues.

The most enduring form of gambling activity in Latvia is the lottery known as Latvijas Loto. It was originally established in 1972 as a complement to Sojuzsportloto, the Soviet organised Sportloto.

Sports betting also has a rather long history in Latvia.

In the 1950s, the Hippodrome in the capital city of Riga was the country’s main venue for betting on horse races.

However, when the facility burned down in 1965, sports gambling became illegal and remained so until independence in 1991.

Eight years later, Teletoto was awarded the only legal license to offer sports betting in Latvia. It established two brands, Optibet and Latbet, and together they now manage just over 20 betting shops, most of which are in Riga. The majority of wagers are on football matches, with basketball, ice hockey and handball also attracting considerable interest.

Casinos are a more recent addition to the Latvian gambling scene, but they have become immensely popular since the turn of the new millennium. Today, 32 of them can be found through the country. About two-thirds of those are located in Riga, and half of them are operated by the Olympic Entertainment Group under the Olympic Casino brand.

Saeima addressed gambling on the Internet for the first time, making it legal under license and placing a 10%

A review of Online Gambling in Latvia exceed 49%, a sterling track record and the General license entry fee of LVL 300 thousand with annual renewal fee of 25 thousand.

Unlicensed operators will be not allowed and will be blocked by Internet service providers in Latvia.

As in the USA banks and money processors will be required to block all transactions from unlicensed online gambling operators and a 5% gambling tax on GGR will be imposed.

interactive gambling tax on all revenues generated by Latvia-based gaming web sites. Because Latvia was among the earliest European nations to legalise Internet gambling, the country has benefited greatly from interest in its dot-LV domains. What’s more, Riga quickly became the largest “live dealer” casino game broadcasting center in the world.

The very first live dealer casino studio in Latvia was created by Evolution Gaming followed by Playtech.

They paired online gaming with live video feeds of real table games operated by actual dealers. Soon they were supplying their feeds to Blue Square, g casino and paddy Power. By 2009, Playtech followed suit and set up their own Latvian operations. Oddly enough, the live dealer studios are available only under license to offshore casinos, not to local operators.

Latvian Lotteries and Gambling Supervisory Inspection and the Ministry of Finance have now initiated changes in the legislature that controls offline and online gambling. The changes proposed in the draft legislation concern the fee structure for licensing, taxation, age restriction and control. State departments that are connected or affected by the new amended rules for gambling are also part of the ongoing discussions.

Amendments for the online gambling sector include a massive redesign of the current rules, regulations and the enforcement of the rules.

To operate in Latvia a firm would be required to hold a General Gambling license to offer games over the internet. Costs and registration requirements that are mandatory and under review include, LVL 1 million Shareholders capital, share of non-EU equity holders can not

However the online gambling activity in Latvia is small in comparison with other Eastern European and European neighbours. Transaction statistics show approximatly 17 million euro in online gambling transactions. If 25% net revenue were placed on that, this comes close to 4.25 millions in net rev for the entire market, if 1 bookmaker owns the entire market but since there are 10-11 bookmakers currently targeting the Latvian market, this brings the profits down to 300-400k per house. And that is before expenses such as CS, marketing, and with quadrupled house edge when all that is removed from the equation there is not much left for profit. If you have 6 employees CS (which is needed to cover 24/7 support) x1k per month salary meaning you have 72k per year only for support salaries. Latvian online gamblers have a very short LTV and are known to be free play hunters with very few real money deposits and very small amounts.

BUSINESSMAG • ISSUE OCTOBER 2013

The amendments are hopefully in compliance with European Union rules about e-commerce free trade among member nations.

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GAMING NEWS

Thomas Arasi named as new COO of Solaire

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loomberry Resorts the owner of the Solaire Resort and Casino in Manila has moved quickly to replace the contract between Global Gaming Philippines LLC (GGAM) along with its resident Chief Operating Officer Michael French by installing Thomas Arasi as their new Chief Operating Officer.

Last month Bloomberry cancelled the management agreement between Global Gaming and themselves along with releasing Michael French in what the company said was “on a material breach.”

In a disclosure to the Philippine Stock Exchange, Bloomberry said Thomas Arasi – an American who is a veteran in the gaming and hospitality industry – would assume his role on the 11th October.

Mr Arasi will be responsible for leading the effort in ensuring the rampup of the operations and profitability of Solaire Resort & Casino.

“We are pleased to welcome Thomas Arasi to Solaire. We believe his credentials and experience will be key to achieving our expectations

for Solaire,” Bloomberry chairman & president Enrique Razon Jr. said in a press statement.

Rational Group hire Director of Gaming Sam Hobcraft who was Director of Gaming for Betfair has moved on to become Director of Gaming for the Rational Group.

There has been much speculated that the Rational Group who own PokerStars and Full Tilt Poker (FTP) would launch an online casino offering on the Full Tilt Poker platform, to help increase revenue for FTP that has seen player numberS drop over recent months.

Sam Hobcraft will certainly oversee this move by the company into online casinos as his experience with Betfair covered areas such as Product Director of Gaming & Head of Casino games.

William Hill the largest UK bookmaker saw revenues soar but results go against them in their Q3 results for the year.

The companies online sportsbook saw an increase of 42% in revenues, with its mobile offering seeing an increase of 115%. In total from mobile betting the company saw a rise of 126%, the retail units for William Hill received an increase of 27% over the 13 week period to October.

But with customers finding the right results in football in particular the company missed its projected forecast by £20 million for the quarter and with a quiet July for retail shops with what the company put down to the hot weather.

CEO of William Hill Ralph Topping said: “During this quarter, results were not as favourable as in the comparable period, with outcomes – particularly in football – going the punters’ way.

Consequently, gross win margins are below the prior year in both major channels, and below normalised expectations in Sportsbook. It is of course important in our business to look through the impact of short-term results on trading.”

BUSINESSMAG • ISSUE OCTOBER 2013

William Hill revenues soar but results missed

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SPECIAL Feature Ireland

Submission:

On Irelands Gambling Control Bill 2013

I originally did a full submission to the government in 2006, this submission is in response to the that bill

The Bill is available at www.justice.ie

By J.J. Woods Introduction

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he existing legislation in the area is widely recognised as being out dated and ineffective in dealing with the developments in the industry and I welcome a New Gaming Legislation.

I also believe that this is an opportunity to roll out a legislation that is respected and can compete with other countries whom already have an up to date Gaming Legislation.

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Regarding part (a) 1 pg24. 2R licences

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Ireland in no possible way could support 40 x Casinos. We have a population of twice that of Manchester UK and they currently have 7 Casinos. Whilst geographically different the population could still not support this. If there were 3 x

Casinos in each city in Ireland this would make a total of 15 Casinos which may be sustainable but extremely competitive in my opinion.

Allowing for Racecourses who may apply (situated near a city) that may well take a further 3-5 Licenses. The amount of 2R licenses therefore should be a maximum of 20. It should be noted that the number of slot machines (maximum 25) as stated in the Bill would add to nonprofitability of the business in any case.

was allowed to carry on and still does to the present day considering that the 1st rule of any gaming legislation is ‘’to protect the young and the vulnerable’’.

(6) Categories 2A and 2B pg 21,22

The proposed Bill is vehemently against Fixed odds betting terminals but in my opinion FOBT’S have actually highlighted the dangers of Slot machines in general because like FOBT’S they are located on our High Street and are just as addictive. To sum up I believe that all gaming machines should be located in Casino buildings only and certainly not in takeaways etc.

It is debateable if the Amusement side of this sector would actually survive under the new bill given that permissions over several decades were given to Arcade operators to allow gaming machines on the basis that the operator offered other forms of Amusement which more or less forced the operator to create amusements directed at children. It is hard to believe that this

The Slot arcade business predominantly is a day time business which attracts mostly the working class population and in my opinion the most vulnerable. The premises are conveniently placed and are easily accessed and similar to betting shops in that regard.

(b) Head 37(9) applies where appropriate, i.e. no licence may be issued until planning has been secured. pg 40

today in Ireland is because of the grey area in our legislation. If the Government is now proposing a new legislation then this model should simply not be provided for.

Overview and Opinion I understand the complexities of introducing a new gaming legislation and all of its forms and overall the 2013 Gambling Bill covers the numerous issues and congratulations to all those involved in this complex task.

It is my opinion that this type of planning should not be dealt with entirely by local authority as favouritism can be expressed in this area and possible corruption. I believe local authority should be part of the process but not have the final say in this specific area regarding Gaming.

It is stated that there may be provision for a 2R License to have a minimum of 3 x Gaming Tables. This in fact would not even be a viable business model and simply would not work. The message it would send out internationally would not be a good one for Ireland legislating on gaming.

Many countries prior to legislation allowed this model and in some cases this model grew underground illegally over 20 yrs ago in countries like Russia. The very reason we have private members clubs like this

I feel the roll out of the Bill lacks investor interest to attract Gaming operators to Ireland and considering that the total duty take from gaming (including lotteries) in the UK for the year to April 2013 was £1,682,351,000 (1 Billion) I feel the Bill needs to be debated on and changes made so that whilst we are a smaller country our New Gaming Industry is still capable of earning substantial revenues for the Government but at the same time be able to compete on a world wide platform.

JJ 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

BUSINESSMAG • ISSUE OCTOBER 2013

This part of the application needs to be streamlined as an operator may well secure planning permission but his license application may be refused. The Gaming Control office should work in tandem with the local council on the entire application process to prevent this from happening.

Part C – maximum / minimum permitted numbers of tables, machines (iii) pg 25

However it does come across in general as more restrictive than regulated and it is debateable if the business model would survive on the ground especially regarding 2R Licenses.

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NEWS

Manila resort to be named “City of Dreams”

Jim Ryan back in the game

Lawrence Ho the CEO of Melco Crown Entertainment in Macau has confirmed that the new casino resort in the Philippines will carry the “City of Dreams” brand.

At the naming ceremony Wednesday (9th October) where the casino resort is scheduled to open in the middle of 2014 which is a partnership with Henry Sy-led Belle Grande.

The gambling hub of Macau has been targeted by cyber attackers according to a report from the sole internet provider for the island said.

The company’s firewall successfully blocked out a large amount of suspected traffic to ensure continued operation of internet services,” the Companhia de Telecomunicações de Macau (CTM) said in a statement

Macau set for record October Macau seems un-stoppable with rising revenues and October is expected once again to see another record month according to analysts. Revenues could be MOP34.8 billion (US$4.35 billion), 26% rise on the same period for 2012.

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alifornia will be the key to success for online gambling companies in the US should they pass laws to become the fourth state allowing online gambling.

That could be sometime in 2014 and for the 38 million residents, tribal casinos and interested online operators would mean that the largest US state would be able to call the shots on any interstate compacts.

No surprise then that former CEO of bwin.party Jim Ryan has joined up with arguably the best poker player in the world Phil Ivey, former director of bwin. party Michael O’Malley and the Pala Indian tribe in California to form Pala Interactive LLC. The new company will work on bringing an online poker offering in the state with the backing of the Pala Indian tribe who own the Pala Casino resort spa. Bringing in Phil Ivey as their ambassador will offer a very recognizable face to the company and with Jim Ryan as CEO who many observers say did a fantastic job while at the UK online gambling company during

the merger of party gaming and bwin, the new start-up will have a very safe pair of hands to guide it through its passage into online gambling.

Michael O’Malley who has a wealth of experience in the poker industry with Card Player magazine, Wynn Las Vegas and Harrah’s will bring the expertise and

skills needed to ensure the company are successful and highly competitive.

Robert Smith the Chairman of the Pala Band of Mission Indians supports online gambling in the state and wrote a letter in May of this year encouraging the other Californian tribes to back the Tribal iPoker Bill.

California is the key state to success in

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Cyber Attackers target Macau

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WORLD NEWS

Betfair open NJ website COO

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etfair are gearing up in New Jersey with the launch of the 26th November deadline for online gambling to go live with their website in the state now using teasers for customer prior to launching with local partner Trump Plaza.

The UK based online gambling company are offering a fun quiz and updates on progress of their license application to the New Jersey Division of Gaming Enforcement.

Currently only two operators now have been given license clearance by the New Jersey Division of Gaming Enforcement, which is the Borgata and the Golden Nugget Casino however their partner Bally Technologies are still awaiting their license clearance, that is the same for the Borgata and their online partner bwin.party who are yet to receive their license in the state so speculation on whom will be first to launch come 26th November is very much at this stage a lottery.

Echo sees share price slide in face of competition

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cho the Australian casino operator with operations in Treasury Casino in Brisbane, Jupiter’s on the Gold Coast and the Townsville Casino are feeling the pressure with new licenses and casino resorts all planned in their neighborhood. The companies share price has dropped 5% in October.

Queensland is freeing up licenses that were previously blocked to allow more casinos in the state along with at least one super casino resort, which is certainly going to impact on Echo.

Tony Fung is expected to start building his huge Aquis Great Barrier Reef Resort after local authorities gave the green light so long as the billionaire agrees to certain enviromental criteria’s.

Then there is James Packer who believes he will be allowed to enter the local market with an alternative large integrated resort development in opposition to Echo sent the share price of the Sydney-based company tumbling.

Gold Coast Mayor Tom Tate said he believed the Wavebreak Island project was ripe for a casino licence.

“If you have a casino there, it will be high revenue coming straight in for the State Government,” he said.

It all adds up to a tough time for Echo and its CEO John Redmond, who has made no comment on their tumbling shares and the competition heading straight their way. It seems a long time ago now that Echo had a monopoly in the state.

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On the Gold Coast, at least two bidders are hoping to secure approval to begin constructing a casino and resort at Wavebreak Island.

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GAMING NEWS

Investor buys £37 million stake in Ladbrokes Online complaints rise in IOM report

Over £37 million was used to buy up the stake in Ladbrokes using brokerage firm Shore Capital with connections saying the buyer was Playtech founder Teddy Sagi, although it is unclear if the purchase was through the Playtech account or his personal Brickington Trading company.

Playtech has an agreement with Ladbrokes to offer its software and expertise to help bring the second largest UK bookmaker out of a major slump that has seen it fall well behind its major competitor William Hill.

Anaylsts believe it is a clever move should Mr Sagi be the buyer of the stake in Ladbrokes, in which in effect he is staking his companies ability to pull Ladbrokes back to being a major force in retail and online bookmaking again. Should Ladbrokes become a success his stake in the company would of course increase along with

profits from Playtech, a win win situation.

CEO of Ladbrokes Richard Glynn is struggling to convince shareholders he is the man to ster the company back to successes and many observers believe he has to next year’s World Cup finals to prove them he is the man to lead Ladbrokes.

CEO of Arriva joins Ladbrokes Board Ladbrokes has announced the appointment of Arriva CEO David Martin as a non-executive director of the company. The position is being vacated by the retirement of John Jarvis who is leaving the board in 2014.

Martin is currently CEO of Arriva, one of Europe’s largest passenger transport providers, which was purchased by Deutsche Bahn in 2010. He joined the Arriva board in 1998 with specific responsibility for the group’s international operations and development and has been CEO since 2006.

Although the commission did point out that the number is very small considering the amount of operators on the island and the total number of players using those websites.

The complaints range from account suspensions, gamerigging, betting disputes, games rules and technical issues, with all but one of those complaints having been resolved.

The commission also showed that they have made £1.5 million in profits for the local government in the last year, with licensing fees for online gambling reaching £1.9 million, compared to £300,000 for casino licensing and £34,000 for gambling and slot machines.

BUSINESSMAG • ISSUE OCTOBER 2013

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peculation in the London stock market grew as a mystery buyer purchased almost a 3% stake in Ladbrokes, sparking rumours of a potential purchase of the struggling UK bookmaker.

The Isle of Man Gambling Supervision Commission (GSC) has reported a large rise in complaints by online customers over the previous year. Next week the GSC will release its report and announce that complaints have risen from 263 the previous year to 367 for the past year.

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GAMING NEWS

Lithuania looks at online gambling regulations 888 announce Q3 results and US future

Gaming companies active in Lithuania would have to go out of business if the legislative provisions were not approved, he said.

“The law on gambling was adopted in 2001. However, it did not specify either online betting or online gambling – nobody could imagine at that time that it might be so – as types of activities governed by legislation.

Yet, the companies continued operations…,” deputy minister said.

Blocking domains of the gambling companies that are not registered in Lithuania would not cost much to the country, he said adding that Lithuania could follow Estonia‘s process.

“The Communications Regulatory Authority said that it would cost a lot [to block a domain] and it’s very complicated. But we have Estonia’s example – the Estonians said that it’s not a cure-all solution. There is a black list, they are tracking those

companies and blocking them. As far as the results are concerned, 66% have not even noticed that such a measure is being taken. Another 19% circumvent the law and 16% do not register since they are aware that they will be blocked,” the official said.

Government officials are proposing to parliament to pass laws for online gambling in early 2014 and offer licenses for legitimate online operators along with setting up a Gaming Supervisory Authority to regulate and supervise the sector.

Hilary StewartJones joins Playtech Playtech have announced the appointment of Hilary StewartJones as a Non-executive Director with immediate effect, in her new role Ms StewartJones will chair the Board’s Risk & Compliance Committee and Remuneration Committee and sit on the Audit Committee.

888 Holdings announced their third quarter results along with their expectations for the US market in 2014. The company said that group revenues rose by 2%, showing $94 million in sales which was in line with most expectations for 888.

Also Chief Executive Brian Mattingley spoke about the prospect for the company going forward in 2014 by saying, “In 2014, we should start to see some meaningful revenues come through.”

With Nevada now live with online gambling and New Jersey soon to follow suit in the next few weeks Mattingley said that he believes larger states in the US will follow suit quite quickly and one state in particular interested the 888 boss.

“California is the prize. We are working flat out to identify some quality partners out there,” Mattingley said.

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ithuanian are moving forward to regulate online gambling says Deputy Finance Minister Vytautas Galvonas.

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POKER NEWS

UK Government raise casino slot jackpots and no change on FOBTs ookmakers will not face any changes to FOBTs

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the Government has said, there were protestor groups calling for changes to retail bookmakers offering customers up to £100 a spin on the machines but according to the Department for Culture, Media and Sport it wants to protect gambling industry jobs and profits and a change of FOBTs would endanger those jobs.

However Ministers did acknowledge concerns that fixedodds betting terminals (FOBTs) can cause addiction and even violence. So there is a strong indication that the industry has to co-operate with research into the potential harm caused by FOBTs in the future.

The DCMS also announced at the same time that the maximum pay out for slot machines in casinos would go up from £4,000 to £10,000, with the maximum stake for such machines to more than double from £2 to £5.

Cubeia enters Indian market

Sports minister Helen Grant said: “The government is pleased to introduce a package that supports the gambling sector but is very clear that growth cannot be pursued at any cost.

“Our response acknowledges gambling’s contribution to the economy but balances this with explicit recognition of the need to protect players, particularly at the higher end stakes.”

KEEP UPDATED FOLLOW US ON

Software development company Cubeia is set to unveil a brand new real-money poker network in India in collaboration with local partner Mirch Entertainment.

The network is based upon the open source platform Cubeia Poker and is one the first pure-HTML5 poker clients to land on the largely untapped and exciting Indian market. The fully responsive and flexible HTML5 poker client runs on any computer and most mobile devices, as well as on all major browsers and on all operating systems.

On top of this, Cubeia Network will conveniently and seamlessly integrate with payment providers in the South Asian country. The first operator expected to go live, some time in Q4 of 2013, is Thrill Poker.

Lars J. Nilsson, Executive Vice President of Stockholm-based Cubeia, said he was thrilled to be launching in the second most populous country on earth. “Cubeia is extremely pleased to enter the Indian market as a poker operator. It is an exciting new market with huge potential and I believe our HTML5 solution is perfectly placed to capture the growing interest in poker.”

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Casinos will also be able to offer “progressive” jackpot prizes of up to £20,000. The new regulations for slot machines have been promised to become law by the first quarter of 2014.

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Two new awards added to nominations

Galaxy Entertainment Group coming to London

Clever Duck Media Ltd, the hosts and organisers of the International Gaming Awards have added two more categories to the 7th annual event after huge demand from stakeholders looking to take part in the nominations process. The new categories are “Innovator of the Year” open to both operator and supplier. The second new category for this year is “Online Gaming Operator,” this category will be awarded to a company that has a full portfolio of outstanding games, offering the very best in customer service, software, branding and a great gaming experience for the customer.

Clever Duck Media welcomes Galaxy Entertainment Group as the new Gold Sponsor for the 2014 International Gaming Awards Ceremony. The ceremony will take place at The London Savoy Hotel on 3 February 2014 and will be judged by 29 global industry experts.

Full details can be found on the categories list here

Colin Thompson organizer of International Gaming Awards commented: “We are thrilled that Galaxy Entertainment Group, the award winning resort operator, will sponsor IGA for another year. It means that IGA is truly the only universal Awards ceremony recognizing excellence globally and supporting international charity at the same time. “

www.gaming-awards.com/international-gamingawards/iga-categories/

The Judges

Yggdrasil latest Gold Sponsor of IGA7

The Social Gaming Association and the International Social Games Coalition are pleased to announce the merger of their respective organisations to create a unified international voice to educate the public and policy makers on the social games industry and to represent and further the interests of the industry. from their existing platform to BETSYSTEMS. The newly consolidated organisation, to be named the “International Social Games Association” (“ISGA”), will represent social games companies worldwide, from established global operators to up-and-coming start-ups. The ISGA will provide a powerful and effective voice for the global social games industry at a time when many changes in the way people access, play and pay for games are taking place. the digital economy.

Yggdrasil are the latest online gaming company to see the value and prestige of the International Gaming Awards and have joined forces to become the new Gold sponsor for the 3rd Feb ceremony.

About Yggdrasil: Yggdrasil Gaming incorporated in 2013 is headquartered in Malta. The business has quickly developed a unique and compelling suite of online desktop and mobile games within the lottery vertical which are licensed to regulated gambling operators under the company’s dual licenses from the Lotteries and Gaming Authority (LGA) of Malta and Curacao eGaming authority. www.yggdrasilgaming.com

GAMING AWARDS NEWS Latest updates to the build up of the greatest awards ceremony for the gambling industry 3rd February 2014 Savoy Hotel London Optimal Payments join the Gold Sponsor list

Outstanding Contribution award

www..optimalpayments.com

The 3rd February will be a very special evening for one outstanding person that has contributed to the success of the gaming industry. As always the award is kept secret to the recipient and all attending till the presentation is announced.

Colin Thompson, Co-Founder of the IGA said, “every year the highlight of the evening is the Outstanding Contribution award, we work with those close to the recipient to ensure complete secrecy and more importantly we have all the information about their achievements. We are already preparing for 7th IGA presentation, but everyone will have to wait till the evening to find out who it is.”

See previous recipients here: http://www.gamingawards.com/international-gaming-awards/winners/igaoutstanding-contributions/

VIP Sponsorship available

Entertainment

This year we have announced a new category sponsorship opportunity, the VIP Sponsorship will offer one company the chance to host the very special guests at the exclusive Savoy bar for their own private before and after party. The venue will be branded to the companies needs and on offer is £10,000 worth of free drinks all night long for those very special VIPs along with some amazing entertainment. Entry is by invitation only and offers their customers the luxury and surroundings that can only be given at the stunning Savoy Hotel.

Wow, we have been informed that Clever Duck Media have arranged some of the most spectacular entertainment for the 7th IGA event. Given that last time we had the superb Gypsy Kings, it is going to be something to beat that, but we are assured that the 3rd Feb event will have some very special attendees, of course we are not allowed to say who, but if you have ever been to the IGA you will know it is always classy, elegant and well worth attending the ceremony for the entertainment alone!

OptimalPayments was again confirmed as a Gold Sponsor for the 7th International Gaming Awards this month. This is the second year the payments processor giant has supported the IGA and both parties look forward to another superb ceremony.

A little about Optimal Payments: Since 1996 Optimal Payments has been a pioneer in the evolution ofpayments for the regulated online gaming industry in North America andEurope. We provide endto-end solutions that ensure an exceptional player experience, reduce operational costs and minimize fraud exposure and liability.

For information on this unique sponsorship contact: colin@gaming-awards.com

Stay tuned to the Gaming Awards news for all the latest every month on the build up to the event of the year.