Casino life June July 2014 Technology in Casinos

June/July 2014

Technology in Casinos - Special Edition

A whole new Galaxy

drAccounting • drTicketing • drCashless • drPlayer Tracking • drBonusing drJackpots • drScreen • drReports

DRGT Europe sales@drgt.net www.drgt.com

Editorial: Editor in Chief: Glyn Thomas Mob: +380 952 705 596 glyn@ace123.com Associate Editor North America David Mckee dmckee@ace123.com Special Assignment Correspondent: Jack Bulavsky jackbulavsky@yahoo.com N Europe - Damien Connelly dconnelly@ace123.com UK - Alan Campbell alancampbellcasinolife@gmail.com Latin America & Asia Correspondent: Janice Chaka Janice@ace123.com International Casino & Gaming Correspondent: JJ Woods jjsilks@eircom.net Online Gaming Editor: Sam Miranda sam@ace123.com

Production: Designer: Stewart Hyde design@ace123.com www.totaldesignworks.com Subscriptions: Helen Holmes subs@ace123.com Web & IT: Sudip Banjeree sb@ace123.com Journal Manager: Chris Sanson csanson@ace123.com Publisher: Peter White Tel: +44 (0) 1892 740869 Mob: +44 (0) 7973 273714 pwhite@ace123.com

Guest Editor

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hy are casinos in Atlantic City failing? The American Gaming Association is saying that it has to do with the strict enforcement of the gaming regulations in New Jersey and not by the increased number of casinos in the northeastern part of the United States. If the American Gaming Association cannot determine that the real cause for the failing numbers of casinos in Atlantic City is “COMPETITION”. When New Jersey became the second state to authorize casino gaming many of the casinos operating in other states were heavily in the control of organized crime. New Jersey is the reason organized crime has no control of legal casinos in the United States.

The reason Atlantic City is on the downturn is because of “COMPETITION”. It all started when the State of Connecticut allowed Native American casinos, namely Foxwoods and Mohegan Sun. These two casinos took away Atlantic City casino patrons living in Connecticut and other New England states. However, this was not enough to have any noticeable impact on Atlantic City. The first big hit to Atlantic City was when New York allowed casino gaming at certain racetracks. Even though there are no table games at Empire City Casino (Yonkers raceway) located in Yonkers New York it is only a short drive from New York City and North Jersey. This was the beginning and since that time competition from New York has increased with opening of the casino at Aqueduct Race Track, known for having the most slot machines of any casino in the world.

The biggest hit to Atlantic City came when Pennsylvania authorized casino gambling. This took away players from Philadelphia and other parts of Pennsylvania. Thos hundreds of senior citizen bus trips to Atlantic City are now going elsewhere.

New Jersey needs to look at a solution that might include allowing casinos in other parts of the state in order to compete. My only concern about allowing casinos in other parts of the state might be the affect it would have on the people of New Jersey, could we be breeding a new generation of gambling addicts?

Frank Catania Catania Gaming Consultants www.cataniaconsulting.com

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Galaxy A whole

new

Peter Johns, Vice President, Electronic Games Gaming Operations at Galaxy Macau Resort Casino talks to Damien Connelly & Peter White

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With your second phase development already under construction, and the third and fourth also in planning, has there ever been another example to match the size and scale of your phased Resort Casino development plans?

• Galaxy Macau is an investment of 16.5 billion for Phase 1 and 19.6 billion for Phase 2.

• After the completion of Galaxy Macau, we still have an additional landbank of 1 million sqm which is approved for gaming, resort and retail facilities, etc. All of our land is contiguous which allows us to develop the single largest integrated resort.

With an estimated land bank of 21.5 million square feet in Macau that provides plenty of scope for

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Galaxy’s development plans, will that involve the construction of an entertainment arena?

• We are continuing to work on some very exciting development plans for Phases 3, 4 and Grand Waldo, which we expect to be able to share shortly.

The Grand Waldo is also undergoing construction work. Is that operation under your remit of extensive responsibilities, and what is involved with the development work underway with this operation?

• We are still planning to announce more details midyear and re-launch the property in early 2015.

• We are very excited about our plans for Grand Waldo.

It will have a different positioning than Galaxy Macau to attract different types of customers with a focus to prolong the length of stay in Macau.

How are trends influencing the design and layout of the second phase of your gaming areas?

• There have been some hurdles this year bringing innovative products into the market but the smoking and non-smoking changes will also affect how we place product in the next year.

• Certainly, ETGs have been expanding due to the tables’ caps and the service and offering is always growing in the market so premium mass is demanding more emphasis.

What customer trends are you seeing across your gaming areas?

• Mass is still rapidly growing in Slots. We have some great mass business and most of it is moving into higher denominations.

• Premium Mass is developing into a bigger segment and again, the smoking changes will alter the landscape next year.

• Links are still growing in popularity, especially mystery jackpots and Asian-centric designed products.

• Loyalty and rated play are also growing strong.

What impact, if any, do you expect on your gaming areas, GGR, and customer experience, of the much anticipated increase in smoking restrictions?

• The Government has accepted the joint proposal by the six operators. This is a very progressive step together with the Government. All of our casinos will comply with the new instruction. It is challenging but as always said we will do the best we can. We would like to find a way that is sustainable in the future.

• We believe the current joint proposal is a result of

many meetings of the six operators and we believe it is a good solution for now. We support the Government in the smoking control policies and at the same time should look after the sustainability of business to achieve a win-win situation. We don’t have a perfect solution yet but we are working on continued improvement on Government instruction.

• We continue to put great emphasis on a healthfriendly environment for our staff and customers. We would like to provide a choice for our customers so there is a win-win situation.

There has also been further legislation requirements on EGMs. Can you explain what they involve and their ramifications on the gaming areas?

• In January, Secretary for Economy and Finance Francis Tam Pak Yuen said that the Government was studying how to regulate the city’s number of slot machines, considering that they are expected to play an ever more significant role in Macau’s gaming industry.

• We are awaiting the results from the Government who we believe will act in a pragmatic way.

What EGM manufacturers and specific game themes are your best performers?

• On the mass floor, Shuffle Masters DUFU DUCAI is still one of the biggest growing products in popularity.

Its Asian-centric games have some great features and generally attract a wide range of players in all denominations.

• We were the first to launch this in Macau and offered the biggest jackpots in Macau.

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How do you see EGM use changing in Galaxy Macau Resort Casino?

• We still see a steady growth in all sectors, as we develop our loyalty programs and promotions we see more regular players and experience players moving up the price point in play.

• Link Jackpots are still a big attraction for players, Galaxy still have the most Million Dollar plus Jackpots on offer over the mass floor.

• Asian centric games and Custom Animation on our in house Mystery Jackpots ensure we can stay competitive with our Neighbour’s, with 35 casinos to compete all offering similar base products this can give smart Operators a competitive advantage.

Do you have your own in-house EGM maintenance and support staff, or do you use an outside organisation to deal with the management and maintenance of your machines?

We have our own in house teams but do use contractors for bigger projects when needed and repair servicing is contracted out.

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What is Galaxy Macau’s policy as far as training of staff on the latest EGMs? • At Galaxy, we pride ourselves in delivering a unique Asian-centric service with our “Asian Heart” attitude and always support and encourage training for team members. Therefore, team members are continuously trained and updated on all product before they are placed on the floor.

What do you feel is missing from the current EGM product that will help Galaxy Macau/you in the future?

• Slots have always been slower in offering Smart Technologies’ innovations that can be found in other mobile and technological devices.

• Integration into mobile technology is out there but as gaming devices, it will take time before regulators allow them in the market and we are working to develop this where we can.

• Additionally, there are other non-gaming approaches where we can connect more with players in this space and make their visits more interactive.

GameAccount Gives Players Immersive Gaming Experience Daniel Lindsay at GameAccount Network knows games and the gaming market. He shared some of those insights with Jack Bulavsky, Special Assignment Correspondent for Casino Life 7

You have some 200 slots from the world’s leading game manufacturers. What types of games are most popular? What do players like to play?

I think what’s important to note is that as a truly open invitation platform, GameAccount Network has the ability to offer slot content from many of the major manufacturers. We offer them a realistically quick and cost effective route to our expansive, well established and growing network of operator partners around the world. In turn, our operator partners have access to, and can freely choose whichever slot content they desire. This means together we can quickly identify and deploy the right games for the right markets, and that’s essential in an ultra-competitive marketplace.

It’s no secret that it’s a competitive marketplace for online slots, that’s no different from the land based environment, a great game will prove its worth by giving players an immersive and enjoyable gaming experience whatever they are looking for.

What differences are there in players throughout Europe meaning does the Italian play differently than a Spaniard or someone in London? What kind of games do they like to play and are they asking for specific types of games? What is new in the world of slots?

It’s probably slightly unfair to try and segment players according to geography but rather focus on what game types appeal to different player demographics. People seek different experiences from playing slots games; some may be looking for ‘time on device’ whereas other players are interested in a rather more potentially rewarding experience. With over 200 slot games for our customers to choose from across the spectrum of game category, feature frequency, hit rate, theme and volatility, we can carefully craft the right game mix to ensure there is something to appeal to everyone. We also think it’s really important that players can enjoy the same games online that they can in land based venues. In essence we can quite simply lift a land based floor into the online space: nobody else can do this as efficiently and as effectively as GameAccount.

The Company has developed an Internet gaming enterprise software system, GameSTACK™. Your press release said it licenses to online and land-based gaming operators as a turn-key technology solution for both regulated real-money and simulated online gaming. Can you define and discuss this a bit more?

Very simply, we offer a total eGaming solution for licensed operators in regulated markets globally. We also have a unique simulated gaming offering for land based operators in pre-regulated jurisdictions which allows them to offer a total eGaming product to their customers, connected via integration into the existing Casino Management System, ahead of monetized regulations. Operating away from Facebook, using a Freemium model, players buy virtual credits to

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play with. It’s been hugely popular in the US and the operators don’t need to pay 30% of their revenues back to Facebook! It’s no secret that land based casino operators face a new and stealthy competitor, their land based slot suppliers – a variety of which offer social gaming products targeting their land based customers’ GameAccount can continue with an agnostic approach as we only offer a complementary product suite.

How popular is online gaming? Where or what is its future?

I don’t think your readers need to me to answer this question, I’d probably suggest what’s more relevant is the explosive popularity of mobile products and gaming solutions.

Along the same line, is gaming and betting in general a good growth industry. Is it going to continue to grow?

Unfortunately I can’t predict the future. Market forces will do that.

How often do you get to the U.S.? How do you view the gaming market in the U.S? Usually only once or twice a year for events. We have a fully embedded US based team who are doing a great job. My remit covers everything outside of North America. But given that only three states currently have legislation in place for online gaming, I’d suggest there’s a whole lot of potential there combined with the roll out of our Simulated Gaming product.

Any business needs to grow and expand. What is in the future for GameAccount Network?

After a successful listing on the London Stock Exchange (AIM; GAME.L) in November 2013 we are growing rapidly. With that comes a new set of challenges for our business which we are currently embracing. Our entire technical development team is based in our central London premises. Every line of code is written there; we are trusted by our content and operational partners; we do things the right way; and have a totally clean US record which has allowed us to gain a New Jersey DGE license and power the BetfairCasino.com operation there.

We also power the largest land based casino’s simulated gaming offering and have executed contracts with other US based operators to do the same. We serve content into over 60% of the regulated Italian market and have a strong regulated .com business stream. The business has a heritage in skill gaming going back to 2003, but now has clearly emerged as a very powerful, innovative force in eGaming. We have a young and dynamic technical team combined with a hugely experienced management team and a strong financial position. I’d suggest the future is looking very good for our business.

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Eyes on the Action at Four Winds Casinos USA

Chris Sanson chats to Marcel Zangger, Director of Operations at Dallmeier USA & Joe McDevitt, President of Dallmeier USA Four Winds Hartford®

Four Winds Hartford casino is synonymous with gambling fun in southwestern Michigan. On over 4800 m² (52.000 square feet) more than 550 slot machines and numerous gaming tables with Roulette, Blackjack, and more, are available to the guests. When the casino was built in 2011, the management placed the highest value on the latest video technology and on selecting the right cameras. After extensive testing, a decision was made to utilize high-resolution HD network cameras by Dallmeier, manufacturer and video experts in developing and producing specialized security and surveillance solutions for casinos since 1997.

“Casinos always present a challenge for cameras: Lighting conditions are often unfavourable, but even the slightest movements lasting only fractions of seconds at a gaming table have to be followed to allow unclear situations or attempts at cheating to be unequivocally

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resolved,” explains Marcel Zangger, Director of Operations at Dallmeier USA. Reliable recording was also important to those responsible for security and surveillance at the Four Winds Hartford casino. Dallmeier offers various options, from the highest-technology blade solutions to energyefficient video appliances with integrated storage system.

“This enabled us to have a custom-made solution specifically created for us. It offers maximum fail-safe operation but at the same time it is very attractive from a financial point of view,” says Stacey Soria, Vice President of Surveillance for Four Winds casinos.

The video system is controlled by the SeMSy® management system; it is simply and intuitively operated. From showing live images, to searching through the recordings in many different ways and on to controlling PTZ cameras: SeMSy® offers a wide variety of possibilities which were individually adapted

to the requirements of Four Winds casinos. Integration with the cashier system in all Four Winds casinos was also implemented. This allows the POS system from InfoGenesis to send transactional data to the Dallmeier recording system for later interrogation. Each transaction can then be searched and verified with its corresponding video.

gaming machines with the highest jackpots in the region are in operation and gaming tables with Roulette and Blackjack set gaming hearts to racing. Whoever gets hungry after that much adrenaline can have a meal in one of the resorts award-winning restaurants, relax with live music in the Hard Rock Cafe Four Winds or enjoy the shows in Silver Creek Event Center.

Four Winds New Buffalo®

Four Winds Dowagiac®

The video system in Hartford proved itself so well in practical application that after one year, Four Winds casinos decided to replace the existing video system in New Buffalo with Dallmeier technology. “We were always having problems with the old system and the support was not very good. That’s why we wanted to switch to Dallmeier products here, too,” says Stacey Soria. Now, over 1,800 cameras in the resort look after its guests and provide a safe and secure environment.

Four Winds New Buffalo casino is located close to the border to Indiana and with more than 12,000 m² (130.000 square feet) of floor space, it is substantially larger than the casino in Hartford. Approximately 3,000

The Dallmeier solution was also put to use in the Four Winds Dowagiac casino, which opened its doors in 2013. This system keeps an eye on 300 of the latest slot machines and five gaming tables.

Stacey Soria says: “We believe in the Dallmeier technology. That is why we once more decided in favour of this solution for our third casino in Dowagiac. The equipment works reliably and the support by Dallmeier USA is fantastic!”

Joe McDevitt, President of Dallmeier USA added: “we are delighted to include Four Winds casinos to our list of happy customers. This is a truly professional operation that provides us with feedback enabling us to add useful features that will benefit all of our clients.”

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Live Dealer Gaming Casino Life’s Mark McGuinness caught up with live dealer casino platform provider Ezugi’s director of business development Mathias Larsson to discuss the growth in live dealer gaming on mobile

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nline casino gambling has been with us for many years now. However who would have thought that back then, that one day you would be able to play live casino games with live professional dealers on the internet never mind mobile!

So why are live dealer games so popular online?

Live dealer games are going from strength to strength as a must have gaming product category for any would be gaming operator brands. Why you may ask? It’s a way for online casinos to create the engagement and ephemeral gambling moment of raised heart-beats, emotional triggers of a live casino environment for players without leaving the comfort of the home on their desktop computer. Most online casinos therefore now offer Live Blackjack, Live Roulette, Live Baccarat, Live Sic Bo and Live Dealer Poker with more live gaming innovations being launched into the sector.

Will mobile be successful for live casino gaming?

With today’s investment in the billions by the telecoms giants, the mobile infrastructure has meant that the bandwidth to support a mobile network is good enough in most markets for the deployment of live dealer casino products. To that end, Ezugi have been preparing for this for a long time and it will be interesting to see how the market develops. As a business, we plan to be at the forefront of this sector growth in live casino gaming on mobile which is being driven by consumer demand and that of the operators looking to keep pace with the needs of their discerning players.

Is the user experience a critical component of success for the mobile offering?

While mobile gaming commerce has an immeasurable potential, the key to the provision of successful live gaming solutions to the mobile market is to offer a

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truly mobile product and experience. It is not good enough to just offer a desktop friendly version merely through a mobile browser. The user experience is central to the engagement, usage and uptake by customers and therefore must be different for different devices. Mobile customers are very tech savvy customers, they have grown up with smart phones with tactile screens and they are looking for instant gaming gratification experience. Live gaming solution providers therefore need to meet these ever changing user device interfaces and experiences for mobile.

Ezugi for example has added functionalities such as a swipe feature that leverages the natural behaviour of the human thumbs on both sides of the mobile device which the end user is already familiar with.

access to the game needs to be minimal. With that in mind, we at Ezugi have created separate mobile apps for separate casino products such as Baccarat and Roulette. So when a player decides to play a game he or she should instantly get access to that game of their choosing. If the loading time of the app is too long or if they have to go through too many pages to find the game, then they will lose interest and not play. For tablets which have bigger screens, the behaviour is different since most players that use the tablet are at home connected to their personal Wi-Fi network. They still want to have a mobile experience, by moving from room to room, but it allows us to offer a larger version with a games lobby, as ‘time’ to load is of a lower requirement as fewer distractions are present.

Can you provide an example of product engagement for a mobile device?

If we take a further look at the mobile device, it is important to truly understand the consumer behaviour, not only to adapt the product engagement accordingly to those needs, but actually thinking about when and where the game play is likely to take place within the context of the players’ personal situation or working day. For example a mobile casino player generally plays a game for 3-10 minutes and then puts the mobile away, perhaps as they have some down time waiting for a bus or are waiting in a line for a sandwich. Therefore ‘time’ is a critical component of the users’ hierarchy of needs. So for the user to play,

And what about the future of mobile and live dealer casino gaming?

For Ezugi, we shall continue to roll-out mobile device specific features as mobile is a major battleground in customer acquisition for all gaming operators. It shall be the most prominent gaming operators that understand those nuances and the requirement to differentiate between mobile, tablets and understand the situational usage behaviour of the player that shall succeed and flourish in our opinion. That is why we as a live dealer casino solutions provider, we ourselves have taken those market requirements into account and have already produced market ready feature led products for different mobile devices.

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Joost van Egeraat, Sales Director EMEA, DRGT

Great successes for DRGT in Germany Glyn Thomas, interviews Joost van Egeraat, Sales Director EMEA at DR Gaming Technology on their progress in Germany 15

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R Gaming Technology has built up an enviable reputation World Wide for Innovation in Casino operating systems, Glyn Thomas managed to catch up with Joost van Egeraat, Sales Director DRGT.

In previous interviews we have focused on the DRGT systems. Here we would like to offer our readers some concrete evidence on your successes and so focus on one of the major countries you are active in.

In that case I suggest we use the examples from Germany. Germany is one of the largest countries in Europe and I believe a great country to refer to.

We all know how precise the Germans are and the strong stipulations from the casinos.

When do your first successes date back to?

Our systems have been active in Germany longer than DRGT has been in existence! The reason is simple – Austria’s Systems in Progress (SIP) that was purchased by DRGT in 2011 won the systems contract with Casinos Schleswig Holstein. At that time Casinos Schleswig-Holstein were using a different card-based system but decided to switch to SIP. Why did Casinos Schleswig-Holstein choose your technology?

We provide ‘superior systems technology’ – that is the response directly from Casinos SchleswigHolstein. This was due to a combination of reasons: service, quality, modularity, flexibility, excellent references – to name just a few. We are renowned experts for cashless technology and this is why Casinos Schleswig-Holstein adopted our technology.

Today we can offer all forms of payment devices together with our systems which has further expanded the opportunities for us.

How has business developed since then for you in Germany?

The DRGT system has recently been installed at the Casino Bad Homburg. This is one of the most famous casinos in the world due to its history. It was inaugurated in 1841 by the Blanc brothers; being the meeting point for aristocracy, including the Russian poet Dostojewski. Its location near to Frankfurt – the banking capital of Europe – draws in a broad player base. Indeed, our successes in Schleswig-Holstein were paramount to winning this business this year here. The Casino Bad Homburg managing director Lutz Schenkel previously worked for Casinos Schleswig-Holstein and so has amassed much experience on how our system works. This positive experience put DRGT in the driving seat

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when casino management decided to look for a new system solution.

What has the feedback been like at Casino Bad Homburg?

Casino management has praised us as having the best system and the best service. We know precisely the world of features and benefits DRGT offers. Our modular system allows customers to choose exactly what is required, when it is required and to build upon this as time goes on. Cashless is like a ‘room with a view’, meaning that it offers great potential to expand upon. Today players in Bad Homburg can benefit from loyalty and jackpot programmes. A new world of communication opens up between operator and player with such a system.

How important is service to casinos here?

This is paramount and reflects just why we are in such demand. Choosing a system is clearly a long-term decision. Our understanding of systems requirements enables us to advise each customer separately so that they can make full use of the opportunities we provide. This requires strong dialogue between our customers and ourselves to be successful in the long-term just as much as in the short-term. We are there for our customers and I think it is fair to say are known as being approachable, friendly and professional. We are not after the one-time sale. We want to build longstanding relations with our customers. This was a key factor for the casino management here when choosing DRGT – knowing that we will be working together to adapt our system when necessary to new demands and/or player requirements.

You are also active as distributor for Konami in Germany?

Yes, DRGT is the European distributor for Konami in Germany, Belgium, Luxembourg, Northern Cyprus and Malta. In Germany our hard work is paying off especially well. The German casino market is rather conservative making it extremely difficult for new suppliers to enter. Casino management tends to keep with what they know. This is also based on their experience – for past trials with new manufacturers have almost invariably been unsuccessful. The opposite is the case for Konami, underlining the success of the German casino market entrance of Konami even more.

Where can Konami slots be found in Germany?

They are already established with the largest casino operator in Germany, Westspiel. Konami slots can be found at this group’s flagship casino – in

Christian Kreyer and Lutz Schenkel of Casino Bad Homburg in Germany with Joost van Egeraat

Duisburg but also in Hohensyburg. Konami now also belongs to the slot machine selection at Casino Bad Homburg. The initial trial with four singlegame machines has been successful. A total of four different games have captured the hearts of players, namely ‘African Diamond’, ‘China Shores’, Full Moon Diamond’ and ‘Egyptian Eyes’. Many gaming machine manufacturers have tried to enter the German casino market. With over 70 casinos here, it is a key market in Europe. The fact that Konami has passed the trials and is now part of the gaming floor at Casino Bad Homburg will send a strong message to other casino operators in Germany.

The door is now wide open to Konami for further success here in Germany. Let me also add that the Saarland Casino Group is a further example of casinos in Germany offering Konami games to their players. They where actually the first in Germany who started Konami some years ago And finally what are the company’s main goals in Germany for 2014 Casino managers in each country are always communicating with each other. We believe that

this ‘word of mouth’ feedback will help pass on the great benefits on the systems side and the new games choice referring to Konami. DRGT serverless technology has clear advantages – for example, set-up costs are much less; no expensive IT staff are required. DRGT can connect with all slots – so operators do not need to part from any older slots to connect to DRGT. Service plays a key role for casino management.

This is particularly true for the system. The fact that we were attested as the ‘best system with the best service’ by the managing director at Casino Bad Homburg and that Casinos Schleswig-Holstein switched to us because of our ‘superior technology’ shows the emphasis we place on this.

For our systems business, our reputation for excellent quality and service has brought about further opportunities in the German market. We are in close collaboration with a number of casinos and I am sure I will be able to tell you more when we next meet. Casino managers are seeing the unique benefits that DRGT offers more and more.

Our flexible, modular system that enables casinos

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DRGT stand at the ICE 2014

operators to choose exactly what they need – e.g. drAccounting, drJackpots and drBonusing. We have great experience in managing all kinds of payment methods with drTicket for ticket-in, ticket-out and drCashless for card-based payments. Then the fact that players can manage their account on the largescreen game monitor thanks to drSreen makes DRGT systems the most customer-friendly in the industry. And lastly, the fact that we can connect all slots and run serverless technology underlines the difference we are making in the industry and explains the reasons for our success.

As for Konami, the next step has been to bring the ‘Selexion’ to the German casinos. The singlegame Konami slot machines have proven to be very popular. We have done several trials with the ‘Selexion’ and the performance has been

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outstanding. All the casinos that have been testing the ‘Selexion’ have pledged to maintain it on their casinos floors. This is the multi-game solution from Konami offers up to ten games for the German market.

I am sure that further casino operators will be wanting to talk to you after having read this interview. How can they get in touch?

Casino operators can contact me personally. I can be reached via mobile phone under +32 483 678 866 and my company email address is joost@drgt. net. Our catalogue can be downloaded from our website.

This feature is right on the homepage www.drgt.com

you asked. we listened.

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