September 2014 Infinity Gaming Magazine

Exclusive excerpts from latest book from Liz Karter

Bookmakers launch “Senet Group”

West Virginia ponders online gambling entry

InfinityGaming

www.gaming-awards.com | ISSUE SEPTEMBER 2014

Gavin Isaacs EXCLUSIVE President & CEO of Scientific Games

PLUS

All the latest news from the Gaming World

Exclusive New Book

BUSINESSMAG • ISSUE SEPTEMBER 2014

Liz Karter new book revealed

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FEATURE

APP Award Nominees Announced inside

contents InfinityGaming

EDITOR’S LETTER

App Awards nominees announced.................04-11 The global App Awards taking place in November

Interview with Gavin Isaacs.................................12-16 Exclusive with President & CEO Scientific Games

Problem Gambling.................................................18-21 Liz Karter’s new book featured

System Addicts.........................................................22-25

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APP AWARDS

Christina Thakor-Rankin latest article

Alex W Pariente........................................................28-31 Our new Global contributing writer

Will Hill considers New Jersey entry................32-33 UK Bookmaker to enter NJ online sports betting?

West Virginia ponders online gambling.........36-37 Will they be the fourth state to legalise?

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GAVIN ISAACS

Crown Resorts secret document uproar........38-39 latest news from Australia gambling

Meet the challenge.................................................40-41 Of the age of the customer - Martin R .Baird article

UK Bookmakers launch Senet...........................42-43 Biggest bookmakers join forces for new independant body

Does iGaming compete with lad based.........44-45 Andrew Tottenham latest article

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ALEX W PARIENTE

Bwin announce more cost cutting...................46-47 InfinityGaming • ISSUE SEPTEMBER 2014

Struggling online operator to cut more jobs

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Sands wants South Koreans to gamble.........52-53 Gambling giant wants new rule for locals to gamble

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

How and where can you read the magazine?

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MEET THE CHALLENGE

EDITOR’S LETTER Lana Thompson - Chief Editor

by

EDITORS NOTES

WI hope you all had a great summer and enjoyed fab weather we all being having. I am sure you are all glad to be back to very busy year ahead of us, so “May the force be with you.” (Star Wars) We have come back from our vacations with the amazing exclusive interview with Gavin Isaacs, a man the entire gambling industry knows, but do you know the real Gavin? We ask some truly indepth questions about his youth, sport, education and of course the gambling industry with Scientific Games leading the charge.

Not just that, but we have the excellent Liz Karter letting us show excerpts from her second book, we will be doing a three month exclusive on the book, it is a must read book, experience working with Women’s group for problem gambling.

And so it keeps coming with our superb line-up of contributing writers from Martin R. Baird, Christina Thakor-Rankin and Andrew Tottenham all offering expert opinion.

We are delighted to welcome Alex W Pariente on board with his exclusive blog to Infinity Gaming Magazine. Alex is the Executive Vice President of Marketing for the exciting casino resort the Baha Mar in Nassau, Bahamas.

Not least as always the latest news and the current list of nominees for the App Awards, you still have time to nominate your companies App, so why you waiting?!

So, “To Infinity and Beyond!”

Enjoy

Lana x

CONTRIBUTING WRITERS Christina Thakor-Rankin Martin R. Baird Alex W Pariente Andrew Tottenham CONTACT US Clever Duck Media Newmarket 20 Centrix@Keys Keys Park Road Staffordshire WS12 2HA UK Tel: +44(0)1543 478 889 claire@cleverduckmedia.com PRODUCTION Clever Duck Media Newmarket 20 Centrix@Keys Keys Park Road Staffordshire WS12 2HA UK

PUBLISHING Infinity Gaming Magazine is operated by © Clever Duck Media Ltd ® Company Reg. No. 687 1018 (Registered in England) ADVERTISING: Sponsorship Opportunities Colin@cleverduckmedia.com

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

BUSINESSMAG • ISSUE SEPTEMBER 2014

Welcome to this special September edition of the Infinity Gaming Magazine.

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EXCLUSIVE INTERVIEW

Exclusive Interview with Gavin Isaacs President & CEO of Scientific Games Infinity Gaming Magazine sat down with Gavin Isaacs the man charged with leading Scientific Games into a new exciting era following recent acquisitions that have catapulated the company to the top of the gaming industry.

Q

InfinityGaming • ISSUE SEPTEMBER 2014

: Gavin thank you for speaking to us today, we have over the years interviewed you a few times and this time we wanted to start by looking a bit further back into your past, you went to the university of NSW and also Sydney to study for your Masters of Law, do you believe that grounding in academia with those degrees helped you to your successful career?

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GI: Absolutely. A strong and supportive educational environment is priceless, and my time at University definitely prepared me for a successful career. I believe that my degrees, both in commerce and in law, taught me to quickly evaluate any given situation in a logical manner, while building decision making and problemsolving skills. Add to that, all the jobs I had at University offered plenty of opportunities to build and strengthen my “people” skills.

Q: For all our readers still considering university, how

important is it to go to university? And is it important to know your future goals so you can cater your education accordingly?

GI: I think we can agree that education, in any form, is valuable — as long as you have focus and take it seriously. The same goes for work experience. If you are doing it right, you’re working and learning. Many people will plan an education around a career goal, but chances are they’ll switch careers at some point in their lives. So, what really matters is having a passion for what you’re doing – whether it’s game design, hardware design, crunching numbers or building a business. I tell my kids that the only thing that matters is to do what you love do to – and do it with passion.

Q: Were you always focused on going to university to study for a Masters in Law?

practice until I left in 1998 to join the casino industry.

Q: Did you have a plan to go into the gambling industry from the start or did it just happen that way?

GI: : It was a happy accident.

Shortly after leaving a particularly nasty and frustrating partners’ meeting, I received a call from a head-hunter. I took the call and six weeks later I was at Aristocrat.

I didn’t expect it, but that conversation led to a fun and successful career for me, and I’m thrilled with the outcome.

Q: Your first senior position was with Aristocrat as the company’s president and you then went on to work with some of the industry’s biggest companies, what has been your most demanding role to date?

Q: You grew up in Australia; were you into sports as a kid?

GI: Bloody oath! I have always loved all forms of football. I used to play rugby, tennis, cricket, and golf, and I sailed while growing up. I still enjoy all sports. Today, I’m a passionate Green Bay Packers fan-- but I still love my Sydney Roosters!

Q: You got your Masters Law degree from Sydney University in 1993, what happened next?

GI: After some time, I became a partner in Phillips Fox (now DLA Piper) and ran a great commercial

Q: As a leading industry recognised figure for the last 16 years what changes have you seen within the industry that are positive and negative?

(Continued overleaf )

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GI: No. I wanted to be a lawyer when I was at school, but a Masters was something I decided to do after my undergraduate degrees and whilst I was working as a lawyer.

I decided I wanted to learn some more and do it in a way where I could really focus in and apply my learnings to my career. I make it a point to learn something new everyday.

GI: All of my roles have been challenging, but overcoming those challenges gives me a great feeling of accomplishment. Even so, my role at Scientific Games has been the most difficult to date. In a short time, I’ve been very lucky to achieve milestones and deliver on very demanding commitments and expectations, thanks to a terrifically talented team.

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product offering, so it comes as no surprise that our competitors are building bigger companies. Having been through this already, I believe Scientific Games has a solid head start.

GI: eroding sentiment towards the industry have been negatives. We are all partly responsible for the current lack of growth in casino gaming. If games are too fast, too tight, or have high minimum bets, the player may not be sufficiently entertained, and they may not play more or come back. Our best offense is to give players a great entertainment experience at a good value, and in a responsible manner.

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Q: You’re now President & CEO of Scientific Games, would you say this is the biggest role you have taken so far?

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knowledge of the company help with the decision to purchase Bally?

GI: Knowing what I know about Bally gave me the perspective to make the best decision in regards to the pending acquisition. As for Scientific Games, I knew there was opportunity for growth in the company; it was just a matter of choosing the best partner. My industry experience was valuable here because it enabled to me properly assess the options and choose the best partner to grow this business.

GI: AWithout a doubt! There’s a lot of responsibility, but every minute is fun. I’m so very fortunate to I work with people who are passionate about what they do.

Q: In a general question of the industry as a whole with so many acquisitions taking place this year, do you see the future continuing as it is with more acquisitions ahead for the sector?

Q: Of course much has been reported over the last few months of the company’s acquisitions most notably that of Bally Technologies; did your previous

GI: While I think we can expect to see more acquisitions in the industry, I’m not sure exactly where or when it’ll happen. Everyone wants to provide the broadest and best

Q: Can you explain to our readers the reasoning why so many companies are consolidating their strength with acquiring other companies; is it a faster way to offer customers more services and products?

GI: Yes. You need scale to innovate and create exciting and engaging content. In a relatively flat environment, you can create scale through mergers and acquisitions, and then drive value from synergies. The key is to select the right partner and not to adversely affect, but rather encourage, innovation and collaboration. If growth is generally seen as a positive attribute, creativity will flourish. It’s not a faster way to offer customers more services and products, by the way – it’s the better way.

Q: At present there are three large companies very active in acquisitions, GTECH, Amaya Gaming & Scientific Games. Do you see any other companies joining this big three?

Exclusive interview with Gavin Isaacs

Consolidation of the industry and convergence of technology have been going hand-in-hand for some time. The combination of Aristocrat and VGT is a powerful one, as is GCA and MGAM. These won’t be the last – but I won’t speculate who is next. What I will tell you is that in a small and competitive industry such as ours, the successful company will be the one to achieve sufficient scale to invest in research and development while improving quality and leveraging multiple channels of distribution to the benefit of the customer. Scientific Games is very focused on this. We have the scale, the talent and the drive to bring the best games, the best platforms and the best systems to our all our customers.

Q: As such a well known and experienced leader in the sector, how do you see the future of online gambling to suppliers and providers like Scientific Games?

Will it become more important in the future to offer these types of gambling options to customers?

GI: A healthy and well-regulated online gaming industry is a huge asset

to us, and a benefit to our customer and our customers’ customer – the player.

Our strategy is to create the best game content and marketing programs to reach consumers across multiple distribution channels. To do that, we bring together an industryleading portfolio of game content, game development, distribution networks, insights and technology resources. In our view, the web plays a huge role in multichannel distribution, with the opportunity and reach to connect with a demographic that has not yet experienced the thrill and fun of authentic casino game play, real money gaming or play-for-fun. That is our strategy.

Online outlets are a crucial focus now, and I only see them growing in the future.

Q: What are the challenges for Scientific Games in the future to ensure your success?

GI: We must properly execute on the integration of two large companies, while keeping our promise to deliver engaging content on the best platforms. We’ll know that we’ve addressed the challenge when our customers – lottery, gaming and interactive – recognize us as their partner of choice. It’s a big challenge, but we’re up to it.

Q: You have no doubt been aware

of the sad decline of the gambling sector in Atlantic City, what needs to be done there in your opinion to stop the continuing downward spiral?

GI: It’s unsettling for certain. We have many customers in Atlantic City, and the decline is tragic for the casinos, the employees and their families, the local suppliers and their employees, the area businesses – the list goes on. Hopefully, there will be a regrowth – but it will take a bold plan to bring the players back. As I said earlier, players seek great entertainment at a good value. If Scientific Games and its competitors continue to innovate around this goal, maybe we can help rejuvenate the sector a bit.

(Continued next page)

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“

Knowing what I know about Bally gave me the perspective to make the best decision in regards to the pending acquisition. As for Scientific Games, I knew there was opportunity for growth”

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Exclusive interview with Gavin Isaacs

InfinityGaming • ISSUE SEPTEMBER 2014

Q: On the flip side to this all the excitement is about Japan and legalising casinos there, do you see Japan becoming the world’s second largest gambling hub as many believe?

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GI: There’s great potential in Japan.

The demand is certainly there— nearly 20 cities have expressed interest in building an integrated resort. First, however, there must be passage of both enabling and implementing legislation. Many believe that the legislative framework will be in place in 2015; after which, the government must agree on an implementation plan. We know that nothing happens quickly the gaming industry, so it’s a waiting game.

Q: Is Asia the most important market now for suppliers and manufacturers?

GI: It is fairly clear that Asia is lead-

ing the world in terms of gaming growth and potential, with Macau’s GGR now seven times that of Las Vegas. Should Japan move forward with an integrated resort initiative, supplier opportunity within the region will expand significantly.

Q: Before we let you go Gavin, could you tell our readers who aspire to become a senior executive, what is the most important element you need to reach the very top; is it education, experience, knowledge or contacts?

Or which one can you NOT do without?

GI: That’s simple— passion is the most important element for success. You need to love what you do. If you have that passion and work hard, you are more likely to succeed.

“

There’s great potential in Japan.

The demand is certainly there nearly twenty cities have expressed interest in building as integrated resort. First, however, there must be passage of both enabling and implementing leglislation. Many believe that the legislative framework will be in place by 2015”

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WORLD EXCLUSIVE

WORLD EXCLUSIVE Working with Women’s Groups for

Problem Gambling

By Liz Karter In a world exclusive the Infinity Gaming Magazine has gained permission to publish excerpts from the superb must read book for anyone involved in Social Responsibility & Problem Gambling. By agreement with Liz Karter the author and publisher Routledge, we will be featuring over the next few months re-worked excerpts from the book specially for readers of the Infinity Gaming Magazine by Liz. Chapter 1

InfinityGaming • ISSUE SEPTEMBER 2014

L

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ifelong Lifelong recovery requires much more than to just stop gambling. The underlying motivation for gambling addiction, especially so in women, can always be found in relationship, whether it is in the ‘too much’ or in the ‘not enough.’ It is about having relationships that cause too much stress and pressure, are too demanding and leave a woman too exhausted to meet her own true needs, or relationships that have been damaging, and in the worst cases abusive.

Or it is about not having enough relationships, so that she is unsupported, lonely and isolated. Which-

ever it may be, the outcome is the same. When we scratch just below the surface of gambling addiction and the chaos of loss chasing and debt, the tangled web of lies that she has woven in an attempt to conceal her gambling and in doing so also protect herself from judgement and the shame that would come from having witnesses to the consequences, the woman with addiction to gambling is trying to cope with the negative impact of relationship. She finds that when she is gambling she is not thinking about anything else or anyone else.

In that sense her gambling is self

soothing. A little win here and there might temporarily lift a low mood, but gambling addiction is not about winning money. It is about buying time out of her real- world experience, where the focus on the slot machine, or the computer screen as she gambles online help her to feel in control, if just for that time, of her spiralling, anxiety driven merry- goround of irrational thoughts and so too her stalking scare, her searing and relentless emotional pain, or darkly depressing feelings. So, she is not gambling to take a risk, but to attempt to take emotional and psychological control.

In order to do this she will need all the help she can get from good healthy relationship and yet it is unhealthy relationship that triggered the use of gambling. Can we begin to perhaps see her dilemma? That is why the findings of my clinical experience have been that encouraging women to engage in women’s groups for problem gambling is difficult, but why the women’s groups I have facilitated produce such satisfactory results. They are reversing the process. They begin to replace gambling addiction, through experiencing the all round benefits of belonging to a group, at first and slowly within the therapeutic group, but then expanding the skills to both give and receive the benefits in their world outside of the therapeutic space.

What then meets our instinctual needs in our ever increasingly frantic and secular world, where there is so little time for the coming together into group meetings of family and friends and religious gatherings? I would take the risk of saying that for everyone reading this book – and I include myself as writer in this particular group-we need look no further than our pocket, bag or briefcase. The smart phone, the tablet, or the laptop contains instant access to our modern day social

Liz Karter

Working so closely and extensively with addiction I fear for the possible outcome of this. What I have learned, as I stated at the start of this chapter, is that life in essence is all about relationship. Our lives are all about our relationships with ourselves and others. If relationships are to be increasingly conducted online, we are in danger of losing the ability to relate.

Our interpersonal real –world relationships and situations will suffer, as potentially we lose the ability to sense what is being said in non -verbal communication such as body language and eye contact. We are in danger of losing confidence in presenting to the world anything other than our ‘I’m okay’, ‘smiley face’ self. In doing so, the ultimate danger is losing essential life skills. I have seen each day since 2001 the result in my treatment room of withdrawal from real life relationship. Our natural and instinctive need to connect with someone is replaced with absolute connection with and absorption in something. We are in danger of addiction.

network. Our Facebook friends, the colleagues with whom we are LinkedIn, our Twitter feed, these become our social groups. How far does this truly feed us, however, and satisfy our natural longing to be part of a group and a support network?

Research found that four out of five students suffered mental and physical distress including feelings of panic, distress, confusion, and extreme isolation when forced to be without technology for one day (ICMPA, 2010)

A report commissioned by the governments Chief Scientific Adviser, Professor Sir John Beddington (BBC Online, 2013) states that we will be spending an increasing amount of our lives online, causing a blurring of the boundaries between our virtual and real-world identity.

If we remove the essential ingredient for gambling addiction – that of course being money-the description of the students would be that of the woman addicted to online gambling or slot machines going through the excruciating early phases of withdrawal.

BUSINESSMAG • ISSUE SEPTEMBER 2014

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he result predictably and paradoxically is not control but chaos. Unaffordable amounts of both time and money spent buying herself escape into the haze of gambling creates an additional set of problems. Her preoccupation with gambling means that focus on commitments such as work and any existing routine and okay relationships begins to fail. She grows increasingly secretive and withdrawn, constantly in conflict with rationally knowing that she has to stop gambling or the situation will worsen, and yet feeling she cannot face life without it. All this creates additional anxiety and loneliness. The only way to take control and to stop gambling is to stop running and face her fears.

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WORLD EXCLUSIVE

Working with Women’s Groups for

Problem Gambling

I

have often found that for women whom I meet with addiction to online bingo that initially one of the most attractive aspects of online gambling was that it offered membership to a group of friends. The advent of social gaming and games played on social networks such as ‘Simms Social’ provides a significant link between social networking sites and gambling or gaming. These social games might be free to play, with charges only for premium content, but I have known women to cross addict to these games whilst going through recovery and there may be no money to lose, but what about the cost in preoccupation, time lost and focus on real –world relationships?

By Liz Karter

and support.

Key life skills that are needed to live a healthy life are lost under gambling addiction, and the more years that a woman has been gambling, the harder they are to find. Often I found that I was in re- parenting role as the original family had failed to impart healthy relational skills.

The result was so often that as we peeled back the layers of, first the smothering layer of debt and chaos, then the gambling behaviour and

InfinityGaming • ISSUE SEPTEMBER 2014

“I realise now I was playing the Simms six hours a day, because I was so lonely and it was like a family” (Rhianne, 46 years old)

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Online gambling has nimbly leapt the social divide. The Adult Gaming Centre(AGC) arcade or bingo hall ten years ago might have been frequented by predominantly working –class women; online bingo is just as likely to be favoured by the middle class professional, on her Smartphone, on her tablet, on the commuter train home. She, like all other women is screened for that time , from all, the natural stresses and anxieties that come with life; balancing her finances, deadlines, her children’s play dates, but sadly too she is shielded from all of the many all round health benefits that come with physical meeting for fun

tion. There was a need to have a safe space to practice developing skills of being involved in what they most wanted and needed, but what they most feared; close supportive relationships. The very first Women’s Group for Problem Gambling was born, replicating a family, friends, school, college the workplace. This was a chance to do something different, to challenge through here and now experience expectations of what it means to be in truly intimate relationship. As we shall see as we now move on to follow the story of one group over one year, from beginning to end, it is indeed a challenge, but one that is hugely rewarding of she can find courage within herself to take what is to her the biggest risk of all, that of being fully within relationship.

Next Month more from Liz Karter the underlying motivation for itdamaging relationship experienceswe would find a frightened, lonely, childlike woman. Isolated and lonely she was depressed and anxious; still vulnerable to gambling to escape from the trap of her loneliness and her troubling thoughts and feelings because there was no support for them.

Women’s Groups for Problem Gambling, the first of which I established in 2006, grew organically out of the need which became apparent as I listened to the women I met with in treatment for gambling addic-

ABOUT THE AUTHOR Liz Karter is a specialist in treating gambling addiction in women. She established and still facilitates the UK’s first women’s groups for problem gambling and is founder of the Level Ground addiction treatment practice. She is the author of one previous book, Women and

Working with Women’s Groups for

Problem Gambling

TREATING GAMBLING THROUGH RELATIONSHIP

Liz Karter Why do so many women with gambling addiction relapse?

Lifelong recovery requires much more than to just stop gambling. Women’s groups provide long-term benefits and support and have proven to be highly successful in promoting recovery from gambling addiction. By following the story of a real women’s group for problem gambling over the course of a year, Liz Karter explains how, for women, both the cause of and the cure for gambling addiction lies in relationship.

Karter shows clearly how learning to face and cope with real life situations and relationships is essential to maintain recovery. She shares the themes which run through each women’s group, such as fear of trusting others, and the guilt, shame and risk associated with being truly seen and heard. Women’s Groups for Problem Gambling shows that with a combination of specialist intervention, women’s group support, courage and compassion, women can learn to stop running from their addiction and instead find joy and support in building relationships and communities.

This highly accessible book provides a unique opportunity to gain a very personal insight into the group process, both for therapists and clinicians and for women wishing to better understand their addiction.

August 2014 162pp Pb: 978-0-415-85962-2: £24.99 £19.99 Hb: 978-0-415-85961-5: £90.00 £72.00

ABOUT THE AUTHOR Liz Karter is a specialist in treating gambling addiction in women. She established and still facilitates the UK’s first women’s groups for problem gambling and is founder of the Level Ground addiction treatment practice.

She is the author of one previous book, Women and Problem Gambling.

20% discount with this flyer. Order online using discount code ADA14* *This 20% discount is only available to individuals purchasing through our website, until 31st December 2015, and cannot be combined with any other offer or discount.

BUSINESSMAG • ISSUE SEPTEMBER 2014

For more information, please visit: www.routledge.com/9780415859622

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FEATURE ARTICLE

System Addicts: The dark art of slot game design

By Christina Thakor-Rankin Our feature writer Christina Thakor-Rankin looks at the art of slot machines and how they are designed to keep you hooked.

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t is often mooted by counsellors, therapists, psychologists and others with significant experience of dealing with addictive behaviours that there is a subtle but very important distinction between gambling and gaming addiction – one is more about winning – the other less so, if at all.

shown that those chances or odds of winning can be very long indeed, but gamblers will accept them if they are proportionate to the possible prize or win. So, whilst a gambler would shirk away from odds of millions to one in the normal context of betting, they are perfect-

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Granted this is a gross over simplification of an incredibly complex area, but the simplification serves in helping to illustrate some of the finer points of game design and presentation – all of which are geared towards longer play time, greater spend and higher profits.

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The starting point for all gamblers, whether disguised as ‘a bit of fun’ or pitting one opinion against another is nothing more than the chance of winning something – but if anyone, gambler or otherwise, thought the chances of winning something were completely outrageous they would leave well alone.

That said, the National Lottery has

ly acceptable within the context of a million pound prize with a million entrants.

So the first step is to ensure that the chances of winning are acceptable to the player. In the case of slot games this would be an average Return To (the) Player anywhere between 95% to 97%, which sounds reasonable as the implication is

that you will only lose on average between 5 - 3%.

The reality is that the RTP is often a theoretical number, or if real, the average of millions of spins over a continuous session which bears little resemblance to a real life experience. Under such circumstances it would not be unusual for a player to experience only 3 to 5% losses every time they play for some time before they even come close to a significant win – but the advertised RTP is a reassuring number.

Secondly, there has to be very visible evidence that there is a chance of winning, and the RTP is not a false promise. In the case of sports events it is the near miss or just got beat which leads the gambler to blame luck and outside forces, safe in the knowledge that next time will be different. In the case of the lottery or bingo regular small wins, someone else just getting more numbers first, and the very real and

These are the games where the first few reels spin and show the big win symbols with the last reel slowing down and tantalisingly suggesting that the final big win symbol is about to appear but it just spins one too far – almost! Or where enough of the big win symbols appear and settle to get a comparatively large win associated with the big win symbols but not the big, big, win – nearly but for one last symbol.

Do this in such a way that a pattern of sorts starts to emerge over a period or repeat play and it starts to give an impression that the game results can be predicted, and

if they can be predicted they can be pre-empted, and if they can be pre-empted, they can be controlled - and beat.

The suggestion that a game can be ‘understood’ and then bested moves the goal posts from actual random number generation to a perception of skill and judgement – which in turn enables the player to assume a semblance of control and view their activity as a test of skills, not gambling.

Next, add in an enhancement to the near miss experience – the bonus feature and its promise of hidden riches and enhanced rewards – quite literally money for nothing (as there is no actual stake attached to this) and so definitely worth playing for, and in some games more valuable that just playing the game as that is where the jackpot sits.

To get the most out of this feature, ensure that bonus symbols are displayed on screen regularly and generously, but rarely in the correct combination to actually activate the

bonus round. Where the activation is rare provide a bigger win, where it is more regular ensure the player gets far less than they expected, disappointing the player but perversely, heightening the desire to get back to the bonus round at all cost and repeat the experience, knowing the bonus feature does pay out if it ‘catches right’.

In more severe situations it can lead to a player thinking the game has cheated them, pushing them to get back to the bonus round even more, and a belief that the game owes them, and their loyalty to it will eventually be repaid.

For those who do not gamble but would like to understand this better, consider a game like Bejewelled or the phenomenon that is Candy Crush. The fact that you nearly cleared all of the jelly or were just 2 or 3 moves away from completing the level shows you it is possible and you very nearly did it – maybe next time you will. A few more near misses and the determination to beat the game,

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public evidence of actual big winners showing that it is possible and next time it really ‘could be you’. In the case of slots, and aside of the winners tickers on many gambling sites advising that ‘Matt G of Worthing’ or player ‘happyspinner’ just won a huge amount of money, it is crucial to ensure that a player regularly experiences a ‘near miss’ moment.

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as background music, with nuances and changes associated with different winning lines and features. In the case of branded games include enough non-gambling elements such as memorable movie clips which lift it to something above just a slot game, and bonus features which focus more on skill and challenge, rather than free spins.

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r conversely, not let the game beat you, begins to kick in – and it starts to become personal.

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Add in a feature which prevents you from doing what you want, when you want – in the case of Candy Crush a time-out – a frustration which is stopping you from getting to or doing what you really want to do – you simply want to do it more.

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In the case of a slot game the player really wants to unlock the bonus feature and to get to that they will play the game – but at this point playing the game is now just a means to an end, and not the end itself. To ensure that the player does not before bored or fed-up and throw in the towel, ensure that there are regular small wins (or losses disguised as wins) along the way to maintain interest and optimism.

Put together correctly, the result is

an experience which is not about the win, it is about attaining goals and objectives – beating the game, hitting and then experiencing the bonus round, but one in which the ‘hit’ is accompanied by enhanced feelings of disappointment and euphoria as it comes on the back of a build-up of anticipation, and is almost immediately eclipsed by the anticipation of the next time - the intervening time (and inevitable spend) being devoted to what might happen next - not what did happen.

This has the double effect of falsely leading the player to believe it is about skill and not RNG driven gambling, and pushing their focus onto what might happen next time, rather than a retrospective reflection which might alert them to how much they have just lost.

Finally add in a few subliminal features which reinforce the positive and down play the negative, such

For the game developers who get it just right the gambling equivalent of Tetris Syndrome beckons.

For those readers who grew up with the first generation of Nintendo devices this needs no further explanation. For younger readers, this is a condition where someone spends so much time engaged in an activity that it begins to influence and pattern their mental images and dreams e.g. reading a book and suddenly seeing the game playing in your mind’s eye. And as those who played Tetris too intensely will tell you, when this starts to happen there is only one way to make the images go away - play the game.

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

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BUSINESSMAG • ISSUE SEPTEMBER 2014

Build Your Brand, Business & Social Responsibility THE 8th INTERNATIONAL GAMING AWARDS NOMINATIONS OPEN

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Categories for both online & Land Based Gambling Industry CLOSING DATE FOR ENTRIES 18TH OCTOBER

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Executive Vice President of International Marketing at Baha Mar

About Alex W Pariente

Through the course of his career he has participated in the opening of 5 Star Resorts in Latin America, Europe and USA and built strategic alliances and cross marketing initiatives with Airlines, luxury brands and Media.

He was recently appointed as Executive Vicepresident of International Marketing at Baha Mar www.bahamar.com having the responsibility of establish a high net worth customer base for this unique 3.5B investment in Nassau Bahamas.

Alex has been a member of the Wynn Resorts family since the inception of the company and has been a preopening team member of both Wynn and Encore Las Vegas achieving 5

stars Forbes and 5 Diamonds recognitions.

In his role as EVP of Casino Marketing, he is responsible for building the business plan, setting up the strategy and innovative marketing programs for both US and International Markets that ensure rapid revenue growth by driving up customers visits, building loyalty and improving service while maximizing margins.

Through his career Alex has been a key in training staff for long-term skill development and creating a customer-service, performance oriented and accountability culture.

The division under his responsibil-

ity accounts for 70% of the overall Gaming Revenues for both Las Vegas properties achieving highest recorded Gaming Revenues in 2007 and 2012. Alex has helped crafting the credit and collections policies and recommend and approves credit in excess of 2 Billion US on a yearly basis.

Prior to serving as an EVP of Casino Marketing he served as SVP of International Marketing at Caesars Palace in Las Vegas where he was transferred after successfully opening and running the Marketing Strategy for the Conrad Resort & Casino for Caesars Entertainment as an Executive Director.

Alex holds a Key Executive Gaming License NGCB (NV, US), a degree in business administration from the Boston Bank Foundation of Buenos Aires, Argentina and has participated in several Strategic Planning and business development programs at Cornell and Reno Universities.

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lex W Pariente is an International executive with more than 20 years of leadership performance and career development in the Entertainment and Hospitality Industry.

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FEATURE ARTICLE

What’s going on globally Alex W Pariente is an International executive with more than 20 years of leadership performance and career development in the Entertainment and Hospitality Industry.

Through the course of his career he has participated in the opening of 5 Star Resorts in Latin America, Europe and USA and built strategic alliances and cross marketing initiatives with Airlines, luxury brands and Media.

By Alex W Pariente Infinity Gaming Magazine is delighted to introduce Alex Pariente, the Executive Vice President of Marketing for Baha Mar as our latest feature writer. In the coming months Alex will focus on the US markets, new licensing and island updates from Baha Mar and elsewhere. In his first article Alex gives us an update on all the gambling hot spots globally.

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ntroduction • The global gaming industry has experienced consistent growth in recent years and will continue this trend as new Mega Resorts are in the pipeline for opening from 2015 onwards with Macau leading the way with more than $10B in projects which will be completed between 2015 and 2017.

position fighting for a piece in the same regional NE USA pie (WLV/MGM Boston as an example) forcing regional companies who dominated the market in the past (Foxwoods/Mohegan Sun) to take an aggressive stand in fighting for positions in those regions to avoid the share shift of their customer base to these new players in their backyard.

• The US market helped by the economy recovery has seen important investments commitments by Significant International Operators and successful companies already conducting businesses within the US.

• State Government officials acted based on their constituents’ desire and reacted differently in planning, adjusting and developing with the private sector the environment that will enable these companies and the States to continue to operate successfully in their own markets. The results were mixed, some states granting a limited amount of licenses that will allow major players to get established in the region and some others late reaction or inability to read and understand the market trends will leave others at the mercy of a dramatic market correction i.e. Atlantic City.

• The arrival of these companies was not only to mainstream business hubs like Las Vegas (i.e. Genting/SLS and the recently announced Crown Melco deal in the strip) but they also landed with successful projects in NE USA (i.e. Genting Acqueduct/etc).

• At the same time very successful companies such as Wynn Resorts and LV Sands are taking a very proactive

The Alex W Pariente Blog - Exclusive to Infinity

• The Caribbean market is also seeing growth and expansion and The Bahamas is leading the way with new gaming legislations tabled in Parliament on September 3rd, 2014. This represents the first major update since Bahamian casinos were legalized in 1969.

Highlights Of The Bill - Proxy wagering: Allows casino licensees that are licensed on or before 1 February 2015 and are part of a resort hotel to operate remote wagering and proxy wagering systems. Allows players to place a bet without physically being on site, via

proxy and technical aids.

- Mobile gaming: State-of-the-art technology will allow players to wager via mobile gaming devices from anywhere on the campus of a licensed casino facility.

- Internet gaming: Allows players to wager online.

- Enforcement of gaming debt: Allows a streamlined process for enforcement of all debts incurred by gaming activities at a licensed casino. Expedites process by which licensed operators can collect debts from patrons once they leave the jurisdiction.

- In-play sports betting: Using new technology, allows casinos or their partners to accept wagers on an event after the game has started and remains underway.

- Responsible gaming: As part of

sound public policy, requires each licensed casino to adopt a responsible-gaming plan and raise public awareness of problem gaming.

Why The Bill Is Important The regulatory changes would allow Bahamian casinos to offer international travelers the latest gaming-industry amenities, including internet, interactive and mobile gaming; in-play sports betting; and proxy wagering.

The new regulations would help to expand The Bahamas’ international tourism industry, which accounts for approximately 55 percent of all Bahamian jobs and nearly half of the country’s Gross Domestic Product. The changes also would help Baha Mar, the $3.5 billion integrated gaming resort, become a greater driver of the Bahamian economy upon its Grand Opening in late Spring 2015.

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• The above mentioned are only some examples of what’s happening now in the major epicenters of our industry, with that said there are some encouraging signs on how the Government and private sector can work together towards enhancing competitiveness of a region.

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With this long awaited Bill adjustment, it is clear that The Bahamas is positioning itself to compete on a large scale, not only in the Caribbean Region, but in the US and International Arena as well.

The opening of Baha Mar (a 3.5 billion dollar Casino Resort Complex with unique hotel brands, a 100,000 square foot casino and world class Jack Nicklaus Golf course TPC Branded Golf Course) in spring of 2015 will enhance their presentation card.

Paul V. Pusateri, Baha Mar’s Chief Operating Officer, said, “The new regulations and laws would enhance Baha Mar’s ability to generate strong gaming revenues.

Technology-driven amenities such as internet gaming, mobile gaming and in-play sports betting will help differentiate The Bahamas in the highly competitive gaming sector.

They definitely will help Baha Mar attract players from the Eastern United States, Latin America, Asia

Chief Executive Officer, Sarkis Izmirlian had the below to say: “These regulatory updates would provide The Bahamas and Baha Mar with a sustainable competitive advantage, which is vital for an economy driven by international tourism.” The Bahamas has long been known as a stable gaming jurisdiction, and these new regulations would put us on a level playing field with the world’s most successful casino markets such as Las Vegas, Singapore and Macau. The regulations also would allow us to offer private VIP gaming salons, enhanced lines of credit, gaming junkets and other amenities vital to attracting affluent international casino customers.”

and other markets that will be important to our success.”

You can foresee how interesting the Regional and International Markets offering will be enhanced, customers in East USA, LA, EU and Asia could not be happier.

More to come…

About Baha Mar Baha Mar is set on 3,000 feet of white sandy beach just 10 minutes from Nassau’s fully renovated and expanded international airport. It will feature an elite collection of hotel brands with gaming, entertainment, private residences, shopping and natural attractions that reflect an authentic Bahamian experience.

The resort’s Grand Opening celebration is planned for Spring 2015.

The Baha Mar Casino & Hotel, managed by Global Gaming Asset Management, includes a 1,000-room hotel and a 100,000-squarefoot Las Vegas-style casino. Baha Mar also will include a 700room Grand Hyatt, a 300-room SLS LUX, and a 200-room Rosewood. Amenities will include a Jack Nicklaus Signature golf course; 200,000 square feet of flexible convention facilities, including a 2,000seat entertainment venue; an ESPA spa; art galleries featuring Bahamian art; more than 40 restaurants, bars and clubs; global luxury designer and local artisan boutiques; and 20 acres of exquisitely landscaped beach and pool experiences, including a beachfront sanctuary with native Bahamian flora and fauna. In addition, upon completion of renovations, the allinclusive Meliá Nassau Beach will become part of Baha Mar.

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Conclusion

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US GAMING NEWS

AC: Revel $90 million sale deal build, , Polo North Country Club Inc and its president, Glenn Straub have offered $90 million for the Revel which cost $2.4 billion when completed in 2012.

In court documents the developer has shown full intent with depositing $10 million into escrow for 1,800 hotel rooms, theatres, nightclubs, casino and 14 restaurants that was the only casino built since 2003.

Sadly the Revel was besieged by setbacks even before it opened and filed its first of two bankruptcies in March 2013. In the second of its bakruptcy’s in June this year the development was put up for auction but no serious bidders came forward, meaning the hotel and casino closed its doors.

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he Revel Hotel and Casino has said it has agreed to sell the entire development that closed earlier this month for just a fraction of what it cost to

Straub’s new bid will now be put to an auction, which may produce a better deal or not. The Revel will be holding the auction on Sept. 24 at the New York offices of its law firm, White & Case.

William Hill considers New Jersey sports betting entry Christie that New Jersey casinos and racetracks can now participate in sports betting, the UK’s largest bookmaker William Hill are now looking at getting in on the action.

However one company that is not too sure on the legality of the governor’s directive is US casino operator Caesars, with Chairman Gary Loveman saying his three Atlantic City casinos would not be offering sports betting any time soon.

William Hill US CEO Joe Asher said in a statement following the governor’s announcement that his company would review the directive.

“We still have concerns about the federal legal structure that would exist,” Loveman said, “Irrespective of what New Jersey does, I am an advocate of legalized sports betting everywhere.”

“Obviously, this is a significant development,” Asher said. “Like others, we recognize that legalized sports betting is inevitable, and will be a good outcome for customers, states and the sports leagues. In light of our significant investment at Monmouth Park, we are happy that it appears racetracks and casinos in New Jersey will be taking sports bets sooner rather than later.”

But the first ever bet laid down on sports could come as soon as Sunday 14th September by racetrack Monmouth, saying it could start taking bets then as since the announcement by Chris Christie their telephones have been ringing non-stop from customers asking if they will be taking bets this weekend.

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Following the announcement from Governor Chris

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US GAMING NEWS

Christie clears the way for sports betting in New Jersey AC: Trump Ent Resorts file

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for bankruptcy

ew Jersey Governor Chris Christie has given a directive to all state casinos and racetracks that they may offer sports betting, a move that is most certainly going to be challenged by all the sports leagues in New Jersey.

The Governor said he made the decision following a court ruling indicating that there is nothing in state law that prohibits casinos and racetracks from offering sports betting.

With the professional and collegiate sports leagues have already been fighting the state against allowing sports betting in the courts, however the legal challenge ended when the supreme court refused to hear the case, giving governor Chris Christie the cue for this latest move.

Christie said that the directive allows for all casinos and racetracks to offer immediately if they wished sports betting, but one race track Meadowlands said they currently have no plans to offer sports betting.

The professional football, baseball, basketball and hockey leagues, as well as the National Collegiate Athletic Association, all opposed New Jersey’s effort to legalize sports betting, saying it could give the appearance that the integrity of the games has been compromised.

Senator Ray Lesniak a well-known supporter of online gambling and sports betting in the state said, “Victory at last!” “People should book their hotel rooms in Atlantic City for the Super Bowl now because there won’t be any available in February.”

Trump Entertainment Resorts has entered into

bankruptcy following weeks of speculation about the company. The operator which runs the soon to be closed Trump Plaza and the Trump Taj Mahal filed the papers on Tuesday 9th September in Bankrupcty court in Delaware.

The company said it had debts of over $100 million and would almost certainly default on repayments if it did not go into chapter 11.

Donald Trump still owns a 10% stake in the firm, but no longer controls it and has threatened to sue if the company did not remove his name from the casinos. It is not the first time Trump Entertainment Resorts have file for bankruptcy, the last time was in 2009.

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“Based on the arguments of the sports leagues and the United States Department of Justice, the 3rd Circuit has already ruled that New Jersey can carry out sports wagering as described in today’s statewide directive,” the governor’s office wrote in a statement. “The motion simply would clarify and formalize that authority and give clear guidance to casinos and racetracks waiting to open a sports pool in New Jersey.”

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Build Your Brand, Business & Social Responsibility THE 8th INTERNATIONAL GAMING AWARDS NOMINATIONS OPEN

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Categories for both online & Land Based Gambling Industry CLOSING DATE FOR ENTRIES 18TH OCTOBER

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US GAMING NEWS

With the closure of The Trump Plaza on the 16th September there were concerns that Betfair its online gambling partner would also have to close its operation, however David Rebuck, director of the state Division of Gaming Enforcement said in a statement to the press that Betfair would be allowed to operate until such time as the Trump Plaza hands in its license. That could take some time according to observers, there is no rush for the casino to surrender the license.

Rebuck says that means that Betfair have plenty of time to find a new partner in Atlantic City, should the online betting firm wish to do so. “They want to remain fully functional and stay in New Jersey, and we will work with them to do that,” Rebuck said.

Currently Betfair have not indicatted whether they intend to continue in the state or not, but with Betfair along with Trump Plaza coming in joint last with online gambling revenues of $4.3 million for the first seven months of the year it is not certain if they will remain.

West Virginia ponders online

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ith falling revenues from lottery and racinos the West Virginia Gambling Commission said that it is looking into the possibility of the state entering the online gambling business to help stem declining revenues from gambling.

Now with strong competition now coming from states such as Maryland and Ohio for gambling dollars the West Virginia Lottery Director, John Musgrave said, “We’re still exploring online gaming because we feel

that’s the way the industry’s moving, so we want to plan for it. We have not yet made any decision for how we’re going to implement it, but we are looking at it, studying it and seeing how our casinos in our jurisdiction can move in that direction. We’re still seeing a decline [in revenue]. We still are experiencing competition as the new casinos are coming on in Maryland and some in Ohio. That hasn’t plateaued.”

The state which has a population of just 1.8 million residents,

making it the 38th most populous in the US would have to look at joining up with other states to help increase the player pool. Most recently Pennsylvania its neighbor is also looking at entering online gambling in 2015.

Lottery revenues in the state have fallen dramatically over recent years with a fall of 4% this year compared to 2013 to just $101.1 million, the same is being experienced in video lottery sales suffering a 5% drop this year.

BUSINESSMAG • ISSUE SEPTEMBER 2014

Betfair to remain in New Jersey for now

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AUSSIE GAMING NEWS

Crown Resorts in secret document uproar

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rownResorts new license acquisition in Barangaroo has been causing uproar after the NSW gambling regulator allowed parts of the plans by the casino operators on how the resort will be run were classified as restricted and not available for public review.

In total there were eigth documents relating to agreements of involved parties assisting or involved in the project, only one of those docu-

“The information redacted in the VIP Gaming Management Agreement document would, in the view of the authority, not promote the objects of the relevant act and be commercially damaging to the licensee or related entities if released,” he said.

The regulator said that one of the eight agreements that makes up the approved license application is commercially sensitive and supersedes the public’s right to know.

However the “restricted gaming facility” which will open for business in November 2019 have released all other documents pertaining to the license by the Independent Liquor and Gaming Authority following its decision to issue Crown Resorts a VIP-only casino licence.

be divulged unless it promotes the objects of the Casino Control Act, is deemed in the public interest and is not commercially damaging.

ments has been censored along with the title of the document.

A spokesman for the authority said secrecy provisions meant information it obtained in the course of carrying out its functions cannot

“It was the authority’s view the public interest in its disclosure did not outweigh that potential harm.”

The spokesman said the authority had “satisfied itself that the material it did release would not do commercial harm to the licensee and that the publication of the material was in the public interest”.

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ames Packer and his Crown Ltd casino company has again been hit by more delays in their hotel and casino project in Sri Lanka, this time no one is saying what they are.

According to reports out of the country Crown’s $400 million development of a hotel and casino which has not even broke ground yet although receiving clearance to do so back in April of this year.

“We have something to be sorted out from our legal side,” Investment

Promotion Minister Lakshman Yapa Abeywardena told Reuters in a telephone interview. He declined to say exactly what the legal matter is.

“There are some legal issues from our side once they paid the necessary fees for the land,” Yapa said.

“We have informed them to start the construction they have also some issues. It will take another two three months (to start).”

The project has been hit with various issues ever since the start with political opposition groups and

religious leaders opposing the inclusion of a casino to the development, which was granted by President Mahinda Rajapaksa’s government in May, saying that Crown can you their existing partners casino license to operate the new casino.

Packer’s Sri Lankan partner, Ravi Wijeratne owns two casino licences.

At present neither the government or Crown are saying what the legal matters are that prevent construction from going ahead.

BUSINESSMAG • ISSUE SEPTEMBER 2014

Sri Lanka casino resort: more headaches for Packer

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ARTICLE

Meet the Challenge of the ‘Age of the Customer’ With Casino Customer Service and A Service Culture

By Martin R. Baird Our feature writer Martin Baird in his September article reviews the latest report on the Age of the customer and sees how it could be modelled for the industry.

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orrester, a global research and advisory firm, sees a new age dawning – the “age of the customer” – and there are five ways the company’s research will have a significant impact on the gaming industry.

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Casinos will face intense challenges from competitors and Internet gaming that is only a click away on a smartphone. The Forrester research is spot-on for yet another challenge, the “age of the customer,” that will result in major disruption for casinos at the same time they are trying to compete. Cambridge, Mass.-based Forrester outlined the coming challenges for the business world in a report titled “Competitive Strategy in

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the Age of the Customer.”

Here are five important lessons for casinos from the report.

The Empowered Customer. The source of these challenges is the empowered customer, according to the report. Forrester makes it clear that in order to succeed, businesses must be hyper focused on customers, even obsessed with them. The report states that customers expect more from the companies they patronize because consumers have a wealth of information at their fingertips.

Social Media Sites Are Game Changers. Twitter, Facebook, Yelp and TripAdvisor are examples of why casino customers are empowered with information. Customers can read about a casino at any of these social media sites before they visit the property and they also feel emboldened to share their opinions about the casino on those sites for the entire world to see. In a worst-case scenario, some customers may decide NOT to visit a casino after reading about it. They don’t even give the casino the benefit of the doubt.

ARTICLE

Online Comments Upend Customer Feedback Model.

Opinions people post at social media sites remain online forever. Thus, customers not only have an opinion about a casino before they arrive, they are changing the way casinos receive customer feedback. Customers no longer have to fill out comment cards or track down a manager.

They circumvent the traditional customer feedback loop and post their opinions, complaints and rants on the Internet. This leaves the casino out entirely! These are powerful capabilities that truly signal the dawn of a new age.

Contenders Are the Ones to Watch. Forrester identified three well-known companies that are contenders to participate in the age of the customer. Zappos, Southwest Airlines and Apple all succeed in highly competitive markets that have been commoditized by technology.

The shoe, airline and computer markets have always been competitive and now they must deal with the empowered customer. For example, consumers don’t need a travel agent to find them the best deal on airline tickets.

They can find that information for themselves online.

Gaming is just as competitive as these markets and the Forrester research shows that the time has come for casinos to face the age of the customer.

There will only be one sustainable competitive advantage in the age of the customer and that is amazing service delivered within a customer service culture. For casinos, that means focusing, even obsessing, on improving their guest service which, in turn, significantly contributes to

an outstanding gaming experience. Quality service and a stellar experience will keep guests coming back to play.

Zappos representatives are known for letting customers take as much time on the phone as they want to make a purchase. That’s good service. That’s an outstanding customer experience.

Not that long ago, all casinos had to do to succeed was build a beautiful facility and open the doors. People were excited to have casinos only a state or two away. Now they often have them across town or just down the road.

Or they’re as close as the smartphone in the customer’s pocket. So which casinos will be the destination of choice? Informed and empowered customers will always vote for service and experience and they will vote with their wallets.

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

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

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

BUSINESSMAG • ISSUE SEPTEMBER 2014

(Continued)

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They all laughed...

Now they wished they had listened

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Ready for the CULTURE of Service Excellence?

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Over 20 years of helping casinos measure, manage and improve guest service

EUROPEAN GAMING NEWS

Bookmakers launch “Senet Group”

The aim of the Senet is to preempt a raft of tough statutory measures that threaten the future of betting shops, FOBT’s and targeting punterrecruitment adverts promising “free money”.

Along with this the four bookmakers involved have promised to remove all adverts for FOBT’s from their window fronts and to dedicate a fifth of the space to responsible gambling messages. Also they have said there will be no TV or any advertising before 9pm for special free offer sign-ups for new customers.

Starting in 2015 the Senet Group, will fund an educational advertising

campaign on problem gambling and ensure all their TV adverts carry

also get involved.

James Henderson, chief executive of William Hill, said: “The launch of the Senet Group sets a benchmark by which we and the betting industry can be judged.”

more prominent responsible gambling messages.

However not all bookmakers have signed up to the new regulatory body with Betfred, which has 1,375 betting shops is not a signatory to the Senet Group, but a spokesman said the business remained in discussions about signing up. The bookmakers are hopeful that online operators will

A Ladbrokes spokesman said: “This is about striking the balance between a player’s right to bet and the visibility of gambling on the high street and on TV. We accept that the balance has not been right in the past.”

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rom next month a new regulatory independent body for the bookmaking industry will be launched after William Hill, Ladbrokes, Coral and Paddy Power all signed up to the new body which is named the Senet Group.

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Feature Writer - Andrew Tottenham

Does iGaming compete with land-based gambling?

Andrew Tottenham Our feature writer Andrew Tottenham for his September article looks at iGaming & land based gambling, to ask the question, do they have to compete?

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

I

InfinityGaming • ISSUE SEPTEMBER 2014

n the last couple of years there has been quite a debate as to whether iGaming competes with landbased gambling opportunities. This debate has been fuelled by various initiatives to legalise iGaming with both sides of the debate trotting out statistics to support their case. This article is a qualitative look at both activities and draws conclusions.

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There is evidence to suggest the crossover for landbased casinos is between 10% to 15% of the land-based customer base. The evidence is drawn from polling iGaming customers about their land based activity and vice versa. The figure for the betting industry is much higher. Customer take-up of iGaming in New Jersey and Nevada has been poor and cannot be described as the saviour of New Jersey’s casinos.

I believe take up and crossover rates, the extent to which iGaming will compete with its land-based rivals are dependent on a few things, not least of which; the iGaming product offer and the extent to which land based gambling is artificially constrained by regulation.

First let’s take a look at betting, which has been phenomenally successful in attracting a new, younger base with its expanded online offer and migrating some of its existing customers to their online portals. The internet and its various methods of access; pc, tablet, smartphone is ideally suited for transactional interactions; matching buyer and seller, those seeking information with the information, etc. The rise of Amazon and other online retailers is purely the consequence of the ease of the transaction and their ability to fulfil the order. Finding the product and buying it has never been simpler. Fifteen to twenty years ago, with our slow dialup modems we could only dream of the possibilities that the internet might bring.

Betting is a transaction. I have an opinion that this team will win or lose and I place a bet accordingly. The activity of placing a bet is not entertaining, in some cases far from it! It is watching the game, race or event that provides the entertainment. Online betting makes it much more convenient to place a bet when compared to a retail betting outlet and allows a customer to watch the event in the comfort of their home, office, racetrack

Feature Writer - Andrew Tottenham

Why is it so difficult?

Placing a bet or buying a lottery ticket is not a social activity; it tends to be a solitary activity. Perhaps there is some interaction with the person at the till but it has as much entertainment and social interaction as withdrawing your money from the bank. That is why online is the ideal medium for this activity.

I argue that gambling in a casino is slightly different. Yes, there is the transactional element; buying chips, placing a bet but the outcomes are part of the game; what number did the ball drop in to? Did I get the ace on my face card? People sitting around a blackjack table (21 table) quite often talk during play, sometimes not very pleasantly! But they do talk and interact with the other players and the dealer. The same can be said of a roulette, baccarat or craps table. Sometimes people sit silently and do not interact with the other players but nevertheless it is a social activity; a shared experience. This is a social activity or shared experience in the same way that watching television or a film with family or friends is a shared experience. People do not necessarily talk during the program or film but they prefer watch with someone else rather than alone.

Some argue that playing slot machines is not a social activity. I have spent much time watching slot players and conclude that most of them only talk/interact with other people when they leave a machine to move to another or cash out. Even if they came to the casino

or slot parlour with friends very little social interaction takes place while they are playing, sometimes only to celebrate a win. But I would argue that playing slots in a casino is a social activity the same way that going to see a film is. It is the shared experience that is important to most players.

The demand for gambling is universal, although some cultures have a higher propensity to gamble (propensity is the percentage of the population that will gamble) all cultures gamble. We like it, humans invented it. The legislators in Europe have constrained land based casinos through restricting the number and location of casinos or through punitive taxation. Restricting people’s access to land based casino gambling only drives them to seek a similar activity online. It is not possible to restrict the number of machines or prizes in the online world; real estate is cheap. Governments have tried to stop their citizens gambling online with blacklists and/or banning credit card transactions but just as with prohibition they are failing. If people cannot find what they want legally they will go and find the activity on illegal sites and there are still many of them around.

With this in mind I believe that where land based casinos constrained or not, iGaming casino games only compete for those players who are not looking for the social experience. Those who like to gamble in a social setting will only do so online if they cannot easily access the land-based alternative, in other words their product of choice is not easily available. The real threat to land based casinos will come when the technology (which exists today) is generally available that will allow a group of friends to get together in front of a large screen which becomes their own private blackjack table, each person having their own account and betting their own chips.

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or anywhere instead of at the retail betting outlet. It is similar with lotteries. Buying a lottery ticket in a supermarket or convenience store could hardly be described as an entertaining experience. Watching the draw live or checking your numbers in the next day’s newspapers is where the entertainment comes in. It’s limited entertainment value, I know, but that is where it happens.

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EUROPEAN GAMING NEWS

Southampton decides on large casino license

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outhampton councilors will decide this week which of the seven current applicants for a large casino license will go through to the second stage of bidding. With a large casino license up for grabs in what operators to be a lucrative area for a casino, many of them will be hoping to go through to the final round and an eventual winner decided in the middle of 2015.

Grosvenor, Kymeira Casino Ltd, Genting Casinos UK Ltd, Global Gaming Ventures and Aspers are all in the mix for the license, with

both Grosvenor and Global Gaming Ventures putting in bids for two different locations.

go from expressions of interest to something a bit more firm and final.”

Southampton leaders would like to have the casino located on the Royal Pier waterfront development, which all five companies have named as their location.

Super-casinos can have up to 150 slot machines and 30 blackjack and poker tables.

City council licensing committee chairman Matt Tucker said: “The purpose of the meeting is for the committee to carefully consider the applications on their individual merits to determine whether they

In total eight local authorities were handed large casino licenses by the government, however only two so far have handed them out and are up and running, both by Aspers in Stratford in east of London and Milton Keynes.

Bwin.party announce more cost cutting after profits

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Announcing their half yearly re-

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sults bwin.party said that the company are set for more cost cutting following the decline in business ever since the creation of the joint company three years ago.

In what was a possible indication of the online giant breaking up parts of the business as shareholder Jason Ader puts pressure on bwin to consolidate the business. Bwin said

said it would be prepared to play a part in industry consolidation.

Chief Executive Norbert Teufelberger said that performance had been disappointing. He conceded that some of the company’s problems were home grown, but added that it has also been hit by a tougher regulatory environment in a number of markets.

Teufelberger said the company

would cut costs by a further 15 million euros in 2015, on top of 30 million euros that it will save this year.

“We are simplifying our structure to accelerate the execution of our plans to drive revenue growth, increase our focus on customers in nationally regulated and/or taxed markets, and further reduce infrastructure costs,” Teufelberger said.

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US GAMING NEWS

Gala Coral confirm Bingo sale among Q3 results

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ala Coral the UK bookmaker has hired bankers Lazard to find them a buyer for their 135 bingos. The rumours of Gala looking for a buyer for the bingo division began over a year ago once the company off loaded their casinos to the Rank Group.

The sale of the bingos which is valued at £250 million is expected then to pave the way for a £2bn-plus flotation of its remaining betting and gaming business.

In the companies third quarter results chief executive Carl Lever said that the bingo division had improved its results from £6.6m to £8.2m during the 12 weeks to July 5.

However the sale of the land based bingos will not include the option

on Gala’s lucrative online bingo offering.

Carl Leaver confirmed the longanticipated move alongside third quarter results which showed an 18% rise in total group earnings before interest, taxes, depreciation, and amortization to £67.2m, helped by the World Cup and a strong on-

line performance.

We remain pleased with the turnaround in the performance of Gala Retail and have recently embarked on a process to explore a potential sale of the bingo division,” Mr Leaver said.

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Aspers Stratford “plastic glasses only” rule

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ollowing recent incidents at the Aspers Casino in Stratford, a council committee has decided to impose an “only plastic cup” use on the main area of the venue, with exceptions to the Restaurant and VIP areas.

The action taken follows three serious assaults inside the casino during July in a space of just 24 hours where glasses were used as weapons. The incidents prompted police to request the council review the terms of the license for Aspers in Stratford.

During the committees review solicitor for the Metropolitan Police James Rankin said:

Victims have been “too drunk” to give statements on successive occasions, according to a police report prepared ahead of the review.

Casino staff and police officers have born the brunt of tanked-up gamblers on several occasions – including one staff member who suffered a dislocated shoulder after being attacked by a customer over a bet.

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ASIAN GAMING NEWS

Movie stars shoot Macau resort film

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awrence Ho and James Packer have scored a major coup by getting four of the most famous names in Hollywood to do a short film which will be presented at the opening of Melco Crown’s movie-themed resort, Studio City in Macau.

Robert De Niro, Brad Pitt & Leonardo DiCaprio will star in the short

movie which is being directed by legendary director Martin Scorsese.

Filming has already started in New York where newly married Brad Pitt skipped his honeymoon to take part in shooting.

This is the first time ever all three actors have ever worked together on a movie and to have it directed

by Scorsese is seen a major coup for

co-owners of Melco Crown Entertainment, Packer and Ho. The movie will feature in the opening of MCE new Studio City resort in mid 2015, details of the film and plot are being kept secret, however you can be sure that casino related topics will feature.

Macau August gambling revenues fall

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he world’s largest gambling hub Macau dropped 6.1% in revenues for August according to latest figures released by the Macau government, making this the third consecutive decline in revenues this year. Much of the blame for the decline is on the Chinese mainland with the government who are increasing their campaign against corruption along with falling housing prices in China which is effecting demand from wealthy VIP gamblers.

Revenues from Macau’s 35 casinos fell to 28.9 billion patacas in August ($3.6 billion) from 30.7 billion patacas for the same period in 2013. Most analysts were expecting the drop with predictions of a fall from 2% to 6%, which then would be on the better side of most

predictions.

HEADLINES

HEADLINES

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

Golden Nugget receive NJ online license

HEADLINES

Secret investor in Ladbrokes as speculation mounts

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ASIAN GAMING NEWS

Las Vegas Sands wants locals to gamble in South Korea

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eorge Tanasijevich, the managing director of global development for Las Vegas Sands has said that the company would be very interested in developing a casino resort in South Korea, IF the government would allow nationals to gamble along with tourists.

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The Nevada-based company owned

by Sheldon Adelson has been looking at South Korea for its next project as Asia’s fourth-largest economy has been considering loosening regulations for gambling to help improve the economy.

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“We are interested in Korea. We think it is a top development opportunity for our industry, for our company, and we are very eager to find an opportunity to contribute in Korea in an appropriate manner,” George Tanasijevich, the managing director of global development, said in an email interview with

Yonhap.

“What we are looking for is a location that can support our business model.”

Tanasijevich said his company has recently proposed to the Seoul government the construction of “a truly iconic building” in Jamsil, the site of the 1988 Olympic Games main stadium located in the affluent southern Seoul area. It is close to the Hangang River that runs through the capital city with a population of over 10 million, and Lotte World Tower, a 123-story building currently under construction.

“We proposed to move the baseball stadium to another location in order to optimize the redevelopment potential of the Jamsil site as a leading international MICE (meetings, incentives, conferences and exhibitions) destination,” Tanasijevich said. “Rebuilding and relocating

the baseball stadium as a 40,000seat dome facility will solve a critical need for a year-round facility that can be used for sporting and other events 365 days a year.”

To build such a facility, Tanasijevich said the projected resort needs a casino that allows not only foreigners but also locals to gamble.

“A casino that allows local residents would be a necessary element for our business model, in the scale of the investment that we are proposing to make and the magnitude of the property that we would look to develop in the market,” he said, without elaborating on the details of the investment proposal.

In closing Tanasijevich said that if the government were not to allow locals to gamble the facility would not be successful on tourist visits only to the resort.

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ASIA GAMING NEWS

Vietnam gambling draft bill unrealistic

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he Vietnamese government interested in getting into the land based gambling sector after seeing the success from Singapore and Macau are drawing up new gambling regulations for overseas investors to build casino resorts in the country.

However observers believe the demands the new regulations are putting on investors will stop any major development in casinos in its current form.

One of the regulations to receive a license would be the $4 billion investment needed to build a casino resort in Vietnam, many operators are bemused at the figure and do not know where and how the government came up with that figure.

It is thought that the amount arises from the similar amounts Sands and Genting invested in Singapore, however both those developments are located in prime areas of the country. Vietnamese government is not offering this option, indeed no location is being offered at all at present.

Also the draft regulations for a ca no resort demand that any investor offers up to 50% or a maximum of $2 billion to local partners in order to receive a license. However current regulations do not require this and atleast two casino operations in the country operate without local investment.

Currently the only piece of good news in the draft regulations that operators will like is that it allows for Vietnamese nationals of 21 years of age and above to gamble

in the casino. But even this carries problems, the regulations say the person must be checked for mental competency and financial capacity to gamble before allowing him/she to gamble.

In its current form not many international investors are going to take a $4 billion risk and for the Vietnamese government to get serious investors they will have to amend much of what is in the draft bill.

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Singapore introduces remote gambling bill

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ingapore has introduced to parliament the first reading of the Remote Gambling Bill to help structure a legislative framework to control and regulate online gambling in the country.

The bill will cover all aspects of “Remote Gambling� such as the internet, telephone and all other forms of placing gambling bets.

The Ministry of Home Affairs (MHA) said the global remote gambling

industry is large and growing rapidly and many countries have been reviewing their regulatory regimes.

Gabling in Singapore is strictly controlled and is only allowed with a permitted license, however remote gambling is still in a grey area as Singapore law was enacted prior to the online gambling explosion.

In the bill will focus on the vulnerable in society who are at danger from gambling, it will also enable

the government to introduce a comprehensive set of blocking measures such as website blocking, payment blocking and advertising bans.

If and how any online gambling operators will be allowed to offer services in Singapore legally is unsure at present, but what is sure will there will now be strong controls and regulations towards online gambling from now on.

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INFORMATION

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