Gaming Business Fall 2013

Canada's Premier Gaming Industry Magazine

Vol. 8 No. 3

www.CanadianGamingBusiness.com

Fall 2013

The Next Step for Canadian iGaming Offshore operators… It’s a taxing issue

Inside: Leveraging Cage and Count Room Solutions Executive Q & A with AGLC’s Bill Robinson

PM 40063056

Playing to Win: The Latest in Slot Machines 2013 Canadian Gaming Summit Highlights

June 23-25, 2014 Vancouver, B.C. See pages 35-38

INNOVATION. RESULTS. REVENUE. Driving performance for lottery and regulated gaming worldwide

• Instant, Interactive & Draw Games • Instant Game Product Management • Lottery Systems • Retail Technology • Video Gaming Terminals & Systems • Lottery & Operations Management • Marketing Research & Analytics • Licensed Properties • Loyalty & Rewards Programs • Internet, Mobile & Social Gaming

NORTH AMERICA | LATIN AMERICA | EUROPE | ASIA PACIFIC | AFRICA

2 | Fall 2013

www.scientificgames.com

Fall 2013 Volume 8 Number 3 Publisher

Richard Swayze richards@mediaedge.ca 416.512.8186 ext. 246

Editor

Matthew Bradford matthewb@mediaedge.ca

Advertising Sales

Richard Swayze richards@mediaedge.ca

Senior Designer

Annette Carlucci

contents 30

www.CanadianGamingBusiness.com

16

36

annettec@mediaedge.ca

Designer

Jennifer Carter

Production Manager

Rachel Selbie

jenc@mediaedge.ca rachels@mediaedge.ca

Circulation Manager

Lina Trunina linat@mediaedge.ca

Proudly owned and published by:

President Kevin Brown

President & CEO Bill Rutsey

kevinb@mediaedge.ca

wrutsey@canadiangaming.ca

Senior Vice President Chuck Nervick

Vice President, Public Affairs Paul Burns

chuckn@mediaedge.ca

pburns@canadiangaming.ca

Canadian Gaming Business is published four times a year as a joint venture between MediaEdge Communications and The Canadian Gaming Association To advertise: For information on CGB’s print or digital advertising opportunities: Richard Swayze 416-512-8186 ext. 246 richards@mediaedge.ca Copyright 2013 Canada Post Canadian Publications Mail Publications Mail Agreement No. 40063056 ISSN 1911-2378 Guest editorials or columns do not necessarily reflect the opinion of Canadian Gaming Business magazine's advisory board or staff. No part of this issue may be reproduced by any mechanical, photographic or electronic process without written permission by the publisher. Subscription rates: Canada $40* 1 yr, $70* 2 yrs. USA $65 yr, $120* 2 yrs. International $90* 1 yr, $160* 2 yrs. *Plus applicable taxes. Postmaster send address changes to: Canadian Gaming Business Magazine 5255 Yonge Street Suite 1000, Toronto, Ontario M2N 6P4

6

EDITOR’S NOTE

8

MESSAGE FROM THE CGA

10

COVER STORY

14

GAMING TRENDS

16

GAMING TECHNOLOGY

21

EXECUTIVE Q&A

22

MARKETING

24

SPECIAL SUPPLEMENT

28

CORPORATE PROFILE

30

FACILITY PROFILE

34

FINANCE

35

CANADIAN GAMING SUMMIT HIGHLIGHTS

The Next Step for Canadian iGaming: Offshore operators…It’s a taxing issue Rolling the Dice: Leveraging new cage and count room solutions Playing to Win: The latest in slot machines

Bill Robinson President and CEO of the Alberta Gaming and Liquor Commission The Changing Definition of Community Relations: Giving new meaning to “giving back” New Horizons Conference Returns to Vancouver in 2014 Pure Canadian Gaming

Caesars Windsor Celebrates Five Years of Win Outsourcing is Changing the Gaming Industry

SPECIAL INSERT: Canadian Gaming Lawyer Fall 2013 Edition

Official Publication of the Canadian Gaming Summit

Canadian Gaming Business | 3

TRANSFORMING THE GAME. The world is changing. The games have to change with it. With play expanding to mobile, social and online platforms, innovation is no longer a luxury. It is essential. From our gameplay mechanics and bonus rounds on classic games, to our E-SERIES™ and immersive themes like Batman™ classic TV series, Flashdance™ and The Walking Dead™ , we’re finding new ways to keep the games fresh, the excitement intense and the engagement high. Stop by booth 1141 to experience the games and meet the minds behind the innovations.

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editor'snote

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Building on Montreal's momentum It's been some time since we bid adieu to the 17th Canadian Gaming Summit in Montreal in June, but it seems like just yesterday that we were putting the wraps on yet another landmark year. A special thanks to our partners at the Canadian Gaming Association and our provincial agencies for their role in helping make this a hugely successful event; and for the speakers, guests, sponsors and exhibitors who have fuelled us with new ideas and inspiration to fill these pages for issues to come. With the Summit behind us, it's time to shift our focus to the many gaming developments on the horizon. In our cover story, “The Next Step for Canadian iGaming”, provided by Amanda Brewer with the Interactive Gaming Council, we discuss the issue of offshore gaming and its future. In “Rolling the Dice”, Cummins Allison’s Harry Patrinos leads us through a tour of modern cage and count room solutions; and in our Gaming Technology feature, “Playing to Win: The latest in slot machines”, we showcase some of the latest innovations in slot machines, many of which you'll find on the floor at G2E 2013. What does it really mean to “give back”? Marshall Fenn’s Jim Kabrajee discusses how casinos can take a new approach to community involvement in, “The Changing Definition of Community Relations”. Michael Lipton and his team of legal experts also return to tackle another slate of Canadian and US issues in the Fall 2013 edition of IMGL's Canadian Gaming Lawyer. This is an essential read for anyone aiming to stay ahead of the regulatory changes and trends affecting the North American Industry. Check out our photo spread from the 2013 Summit in Montreal. We hope you enjoyed it and we look forward to an even more successful event next year in Vancouver. In the meantime, we're always open to new story ideas, suggestions and comments, so please feel free to contact myself at matthewb@mediaedge.ca and CGB's Publisher, Richard Swayze, at richards@mediaedge.ca. Matthew Bradford Editor matthewb@mediaedge.ca

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Corrections:

The Executive Q&A with François Hanchay featured in our Summer 2013 issue, incorrectly displayed a duplicate image of François-Patrick Allard from the Charitable Gaming Q&A article within the same issue. The corrected photo and feature can be found online at www.canadiangamingbusiness.com under 'Gaming Profiles'. A profile on Caesars Windsor's Glen Sawhill incorrectly referred to Caesars Windsor as being located in Manitoba, rather than Ontario. 6 | Fall 2013

messagefromtheCGA

Montreal Summit Success Story By Bill Rutsey, President & CEO of the Canadian Gaming Association

As Chair of the Canadian Gaming Summit, I am proud of the fact that, year after year, the Summit continues to evolve and grow in terms of both content and attendance. The working partnerships with the British Columbia Lottery Corporation, Alberta Gaming and Liquor Commission, Saskatchewan Gaming Corporation, Manitoba Lotteries Corporation, Ontario Lottery and Gaming Corporation and Gaming, Loto Quebec, and Atlantic Lottery Corporation for the development and delivery of the gaming education component ensured the high quality of content this year in Montreal, and going forward for 2014 in Vancouver and thereafter. I’d like to congratulate and thank our co-host and lead sponsor, L oto - Quebec, a nd especia lly Ly n ne Roiter, Vice President of Legal Affairs and Corporate Secretary, for her tireless contribution in the planning and development of the Summit; as well as Kevin Taylor, Chef de l”Exploitation, Casinos du Quebec, for his stellar representation of Loto-Quebec throughout the event. Additionally, Loto-Quebec, together with Platinum sponsor, Scientif ic Ga mes; Gold sponsors, Spielo International and Bally Technologies; and all our other sponsors were fundamental to the Summit’s success. Two outstanding plenar y sessions—Paul Lauzon’s (Sen ior V ice President , Ipsos Reid) Focus on t he Future Players, sponsored by K PMG; and the Lottery and Gaming Senior Executive Roundtable, sponsored by Great Canadian Gaming, which was my honour to moderate—set the stage for this year’s theme, 'Focus on the Customer'. The infor mation and education programs included tracks dealing with charitable gaming, corporate social responsibilit y, gaming business and operations, iGaming, legal and regulatory, marketing and communications, security and surveillance, and gaming operations. Manufacturers and suppliers also had all the latest products and services on display during the Canadian Gaming Summit Exhibition. 8 | Fall 2013

There were also great opportunities to get together, i nclud i n g t he G ol f Cl a s sic s p on s ore d b y AGE M and TCSJOHNHU X L E Y, the jam-packed opening reception, and numerous parties and receptions. Our closing event, the Canadian Gaming Awards Reception and Char it y Gala, sponsored by Rogers Business Solutions, raised $7,500 for la Maison du Père and was a celebration of excellence. It formally recognized First Nations Canadian Gaming Award winners Angela Higgins (Caldwell First Nation), Charles Ryder (Carry the Kettle First Nation), Tammy Whitney (Tsuu T’ina First Nation) and Lorne Paudash (Ojibwa-Hiawatha First Nation) together with Industr y Leadership and Outstanding Contribution winners Tw yla Meredith (Saskatchewan Gaming Corporation), Luc Morin (Casino de Montreal) and Glen Sawhill (Caesars Windsor), and Volunteerism and Communit y Ser vice winner JeanPierre Curtat (Casino de Montreal). On a personal note, as a proud Torontonian, I have to reluctantly admit that Montreal is still Canada’s best place to have a party, as was proven by the gala's entertainers, Montreal Rhapsody Orchestra, who rocked the joint. The success of the Summit really speaks to the depth and breadth of our industry and its ability to continue to function profitably and grow—the success that we will be celebrating again next year in Vancouver. Looking forward, as always, the next twelve months should prove to be interesting times for our industry. From all appearances and announcements to date from the new Liberal government in Ontario, the OLG Modernization process will continue, with some potential modifications regarding horse racing. At the Federal level, we anticipate further proposed amendments from the Department of Justice to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, and FINTR AC (the Federal agency charged with combating money laundering), and that Bill C290 will be dealt with by the Senate after the resumption of Parliament in October.

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coverstory

The Next Step for Canadian iGaming

Offshore operators…It’s a taxing issue BY AMANDA BREWER, INTERACTIVE GAMING COUNCIL CANADA (IGC)

10 | Fall 2013

coverstory

The offshore gaming industry, exemplified by big name operators who are licensed and regulated in European jurisdictions such as the United Kingdom, Spain, Italy, and Denmark, are successful companies because of ongoing investments made in product development, technology, fraud detection, and player protection. They have loyal customers that number in the tens of thousands (if not millions), massive liquidity, and employ some of the best and brightest minds in the high tech sector. In Europe, paying tax in these individual jurisdictions is the cost of doing business in a regulated environment. In exchange for access to a country’s market via a license, operators and regulators agree on how much tax (Gross Gaming Revenue or Gross Profit Tax) will be paid. Taxation of offshore gambling can provide an important source of revenue for governments if it is properly designed—a point worth underscoring with Canadian provinces. A case for offshore taxation The Remote Gaming Association (RGA), the largest trade association for remote gambling operators in the world, summarizes the key aspects of a properly designed tax system for remote gambling as follows: “[T]he choice of an efficiently structured tax can have benefits for consumers, operators, and governments. A Gross Profit Tax (GPT) is the best option for the remote gambling sector because it has the highest potential to provide better value, entertainment, and choice for the consumer. GPT is levied directly on the operator’s revenues. It creates a level playing field between operators, permitting the freedom to provide consumers with greater choice and value without concern for the margin of specific offerings.“ A study issued by Ipsos Reid in 2010 revealed that the idea of internet gambling was gaining acceptance in North America, with more people expressing an interest to see it legalized with proper regulation. More than half of Canadians (55%) are willing to permit internet gambling as long as government regulations are in place. This is not surprising, as the first Ipsos poll on the topic, conducted almost seven years ago in September 2007, showed that over 70% of Canadians believe gambling over the internet is considered to be legal. The irrefutable truth is that Canadians are playing online. H2 Gambling Capital estimates the size of the Canadian market to be in excess of $870 million for 2013 (including sports betting, casino, poker, and bingo). This is not an issue that will go away if ignored, or disappear underground. Online gambling is mainstream, popular, and getting bigger every year. In Canada, we expect to welcome another provincial lottery corporation, the Ontario Lottery and Gaming

Corporation, online in 2014. There is an absolute need to have governments involved with iGaming sites as they play an important regulatory role in setting standards and offering a safe and secure environment for players who wish to try online gaming. But what about the thousands of Canadians who have offshore accounts? Anecdotal evidence does not suggest they will simply migrate over to a lottery corporation’s iGaming site. The big operators effectively launched this industry and have been in business for a decade or longer, and have a very loyal player base. Here’s a thought for consideration: reputable offshore operators are willing to seek licenses in jurisdictions that offer them, and we at the interactive Gaming Council (iGC) submit that partnering with those operators via a licensing system is better public policy that simply pretending they don’t exist. If we use Ontario as an example, H2 Gambling Capital has forecasted the possible development of the regulated online market for online casino, poker, and bingo in Ontario, if the province were to introduce a licensing system for these products. The underlying assumption is that there are sufficient onshore licenses available in order to ensure a commercial and competitive market. A model that fits Here’s the “but”: we recognize that lottery corporations and provincial governments may not currently have the political appetite to launch a full licensing or regulatory model. However, we believe that there is an alternative to the traditional monopoly model that governments should view as the evolution of iGaming in Canada: a vendor of record (VOR) model with a reasonable rate of taxation for offshore operators. This would allow governments to obtain a maximum financial return as well as provide the appropriate consumer protections expected by the public. This model stops short of a full regulatory or licensing component, in acknowledgement of the legal hurdle posed by the current interpretation of “conduct and manage”. As more clarity is achieved, a VOR model plus tax could eventually evolve to include full licensing and regulation. One thing is certain: based on the Canadian Gaming Business | 11

coverstory The only investment required is in processing and reviewing applications and collecting payments. This avoids issues with “conduct and manage” but does allow for the introduction of consumer protection standards. Looking at the table to the left, that equates to almost half a billion dollars over five years.

exponential growth of this industry in the past five years, there’s no telling where it will be in the next 10. It is worth taking a deeper look at why taxing offshore operators makes sense for provincial governments. Based on H2 Gambling Capital’s estimates for the Ontario regulated online market, if the government was so inclined it would be able to collect $19.5 million in Year 1 from taxing online casino, poker and bingo at 5% of Gross Win, and $164.4 million in the first five years. If the tax rate were to increase to 15%, then the government would collect $58.5 million in Year 1 and $493.1 million in the first five years. This is not an argument in favour of an expansion of gambling—no new products are being developed. By taxing offshore play, governments are dealing with only the existing activity. Governments would shoulder no responsibility for building games, marketing or advertising, or managing the play.

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Protecting the player Of greater importance is player protection, because not all offshore operators are created equal. Membership in the IGC has increased significantly since its establishment in 1996 and today counts the largest and most respected online gaming companies in the world, including PokerStars, Microgaming, and Full Tilt Gaming; who together comprise a significant percentage of the online market in terms of revenue. IGC members are strictly regulated in first tier jurisdictions that include the Isle of Man, Gibraltar, Alderney, France, and Italy, which are recognized by the United Kingdom as having acceptable regulatory standards. Members are obliged to follow a strict Code of Conduct that outlines the terms and conditions for conducting and managing online gaming operations. This Code ensures that IGC members are at all times acting with integrity, accountability, and transparency, and that player protection is paramount. IGC members must also adhere to an advertising code and responsible gambling guidelines, which are available for review on its website at www.igcouncil.org. These are the standards that European regulators endorse, and that would be brought to bear on any partnerships with provincial lottery corporations and governments. Running a successful online operation that is able to compete with offshore operators requires a constant investment in technology, development of the product offering, and huge spending on marketing. Providing multiplayer games such as poker or single player games typical of an online casino is technically challenging and the exemplary products currently available in the market are the result of many years’ research, development, and experience. Partnering with reputable operators would leave operational risks to the companies while bringing in more revenue to Ontario’s government via an online gambling tax. When choosing which operator to play with, consumers are looking for value (i.e. product, choice, prices, etc.) A competitive local system (a mix of lottery corporation and offshore products) would ensure that consumers do not have to look offshore for value, which means partnering with online gaming operators would also be better for player protection as governments could control who is approved for taxation—and people are more likely to play at locally-regulated gaming sites. A competitive market and a gross profits taxation model with reasonable tax rates would provide a reliable source of income for Ontario’s government, value for consumers in a safe environment, and a healthy competitive environment for the online gaming industry. Put another way: why reinvent the wheel when you can partner with the best in the business instead? For provincial governments, turning to the private sector just makes sense: more money (more quickly) and less operational risk for the government, and a safer playing environment for consumers. Amanda Brewer is the spokesperson for IGC Canada. She can be reached at amanda@igccanada.com.

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Rolling the Dice Leveraging new cage and count room solutions

By Harry Patrinos

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In today’s business climate, casinos must do all they can to get a leg up on the competition in order to attract patrons and keep them coming back. The recent recession has left consumers with less discretionary income, causing them to become more discerning about where they spend their dollars. The recession has also forced businesses—including casinos — to rethink how they view and embrace technology to help them bolster efficiency and streamline dayto-day functions. So what actions can casinos take to better position themselves to provide the best customer-facing experience, while aligning with compliance mandates and improving productivity? They can invest in cost-efficient, back-room technology, like currency and coin handling solutions which elevate time-consuming mandatory processes into more efficient tasks. As a result, the casino can then dedicate more

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time and resources to revenue-generating front-house activities. House benefits Handling large quantities of cash and tickets is a fact of life for casino operations, but how a casino chooses to deal with this daily task can make a difference in efficiency and effectiveness. Whether it's smaller batch sorting and counting in the cage area, in the banks, or in the soft count room where slot machine contents are sorted and counted, today’s currency and coin handling solutions can streamline the process for faster and accurate results. Casinos are exceptionally tech-friendly. Although this investment in technology is typically more visible and considered to increase revenue on the customerfacing side of the business, it extends to the operational side if it provides a clear benefit to a casino and its bottom line. Currency processing technology that offers multiple capabilities in a single machine is a perfect example. With an all-inclusive solution, casinos can not only prepare their deposits quickly and easily, but they can process currency, and all on one machine. Costs associated with maintaining multiple pieces of equipment are eliminated and, by maximizing the equipments' footprint, casinos can make more productive use of employees’ time. W ith most budget a nd at tention doled out to the front of the house, it’s imperative that any back-room technology implemented be an affordable and justif iable expenditure—whether it’s a first-time investment or upgrade of existing equipment. It’s important to select a currency and ticket-handling solution that is flexible in its configuration to allow the casino to scale up or down depending on the space restrictions common in soft count rooms, yet offer cutting-edge features. By improving eff iciency, employees spend less time counting, allowing them to end shifts on time, thereby reducing overtime expenses. Employee morale also improves, which can be a key factor in minimizing costly turnover. A dva nced ca sh, t icket , a nd coin handling solutions also benefit front-ofthe-house areas; most notably, the cage. Many of the advanced technologies found in larger systems are also available in more modular, scalable devices that provide the

same results in a compact, economical way. Cage areas now have the capability to process cash and tickets on a single device, which makes employees more eff icient and, by extension, able to spend more face-time with patrons. In addition, ticket ima g ing capabilities help casinos comply with some gaming regulations for the storage of their redeemed tickets. By producing digital images for each ticket that can easily be f iled and stored, casinos no longer need to store paper tickets in offsite storage facilities, further reducing costs and streamlining the processes of locating a ticket should an audit occur. Additionally, today’s technolog y allows for the creation of an online database of transaction f iles with records that can be shared with other areas of the casino and better track cash handling to identify a chain of custody. Ca sinos on the frontline of improving service for their patrons h ave e x t ende d b a ck- of f ice a nd

attended coin counting technology improvements to the front of the house by installing self-service coin machines. Popular with local patrons, these machines offer customers a faster, more streamlined alternative to having casino cage employees count their coins. In addition to benefitting customers, self-service machines with on-screen advertising capabilities give casinos another way promote their games, restaurants, and other services. W hether in the cage area, soft count room, or elsewhere, investing in the latest currenc y and ticket handling technology can minimize cash handling processes, improve employee efficiency, and allow casinos to leverage the cost and time savings to front-house upgrades to draw more patrons in and keep them coming back. Harry Patrinos is Managing Director, Canada, at Cummins Allison. He can be reached at hpatrinos@cumminsallison.ca.

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Playing to Win: The Latest in Slot Machines It's 'game on' in casinos across Canada where manufacturers and suppliers are drawing from the latest trends and technologies to give players the ultimate slot machine experience. For this issue, Canadian Gaming Business asked some of the major players in this category to show us what they're doing to evolve the gaming floor. AINSWORTH GAME TECHNOLOGY The gaming sector remains one of the most competitive industries, with many manufacturers developing slot machines that give players an unlimited amount of games to choose from. The ex perience a player has at a game is what keeps them consistently playing the same machine. This has been the mantra for Ainsworth and the driving force behind its innovative and cuttingedge designs. Ainsworth focuses on math’s models f irst and foremost when it comes to developing games. Progressive Jackpots and volatility are also key factors as Ainsworth understands that player experience and excitement is fuelled by the player’s ability to win in multiple ways and to experience large wins. “Ainsworth builds games for true local gamblers giving the player an experience that may play out over months of playing a game as opposed to just one session,” says Jason Babler, Ainsworth’s Product Marketing Administrator. Ainsworth’s latest release, Reels of Wheels™, incorporates a unique multi wheel feature and continuously rewards players with four levels of rapid triggering progressive jackpots. Linking five wheels to five reels, the Reels of Wheels™ feature wheels spin to determine special wild symbols linked to reels one through to five. Reels of Wheels™ builds anticipation for the player with eight exhilarating free games, providing guaranteed wild symbols and accumulating wild multipliers, multiplying wins up to five times on reel three. Reels of Wheels™ is truly built for the player experience. Adds Babler, “Ainsworth will remain at the forefront of the 16 | Fall 2013

gaming industry as it is committed to producing the best in the class games to meet the demands of today’s players.” For more information, visit www.ainsworth.com.au. AMAYA GAMING GROUP Cadillac Jack, a subsidiary of Amaya Gaming, designs, develops, and markets high performing, featurerich video slot products designed for premium player experiences. Each product suite is designed to raise the bar with thrilling payouts and exciting bonus features. Players are attracted to Cadillac Jack ’s games because they offer the perfect combination of dynamic graphics, mesmerizing entertainment, and unique game mechanics that increase a player's seat time. Cadillac Jack 's newest g a me, D r a g on’s L a i r, a pp e a l s t o t he player's sense of nostalgia, fun, and desire for challenge. Based on the legendary skill-based arcade videogame, Dragon’s Lair features original and new animation created by renowned Dragon’s Lair animator Don Bluth. Whether a longtime fan or a new player, Dragon’s Lair appeals to all as they join Dirk the Daring, a bumbling knight attempting to rescue Princess Daphne from the evil dragon Singe, who has locked the princess in the foul wizard Mordroc’s castle. Players are challenged to participate in four energizing bonus games and four rewarding multi-level progressives. Rewarding game features include Symbol Stacking Animation, where animated videos from the original Dragon’s Lair game play inside the frame; Mystery Wild Substitutions that can appear anytime, awarding players single, double, or stacked Wilds; and Mystery Multipliers that appear throughout

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display, game-synchronized side lighting, Pro Digital Topper, and Super Candle. Rounding out the cockpit is the Pro Surround Chair, enveloping players in awesome audio. From the roar of 850-horsepower engines to the cheers of the crowd, players will have no doubt they’re in the driver’s seat. NASCA R features three, highoctane bonuses, including the Pit Stop Bonus, Burnout Free Games, and U-Race Bonus. During the Pit Stop Bonus, players can touch the screen to pick a lug nut, with each choice awarding various credit amounts. Burnout Free Games takes advantage of Bally’s award-winning U-Spin™ play mechanic. This time, though, players spin a fresh race tire to discover which free game theme they’ll be awarded. In addition, the U-Race Bonus means it’s time to get in the race. Featuring Bally’s new U-Race™ play mechanic, the bonus awards five free games while the player takes part in a race at the world famous Daytona International Speedway. Each of these bonuses promise players a chance to touch the screen and win while riding with a famous NASCAR driver. For more information, visit www.ballytech.com. IGT W hen pl ayer s set out to t he ca sino f loor for a gaming experience, they are often drawn to two thing s: incredible entertainment and big win potential. IGT’s newly released Triple Red Hot 7’s® Free Games Slots provides just that, offering a lively gaming experience with a variety of ways to win big. The latest addition to one of IGT’s top-performing game series, this red-hot fan favourite draws players to the familiarity of IGT’s Triple Red Hot 7’s® brand, while newer players are captivated by the dynamic audiovisual gaming experience. With over-the-top lights and winning alerts, there will be no question when a player is on a hot streak. Triple Red Hot 7’s® Free Games Slots offers t wo configurations including a 5-payline high denomination option and a 25-payline low denomination option. Players delight in the industry first Spitfire MultipliersTM feature, in which seven initial free games are awarded with the possibilities of retriggers. Each bonus spin is awarded a random multiplier, ranging from 2X to 7X, giving slot enthusiasts even more ways to win. Available on both IGT’s classic S AVP® mechanical spinning reel and IGT’s MLD® spinning reel, the gaming pioneers provide a version perfect for every player preference. The spinning reel version boasts a traditional, familiar symbol set Canadian Gaming Business | 17

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while the MLD® version features symbols that really pop with 3D animation and vivid graphics. For a full list of IGT gaming products and systems solutions visit www.IGT.com, find IGT on Facebook or follow news via @IGTNews. KONAMI GAMING The gaming industry has come a long way from the days of the single-line three-reel mechanical slot machine. Changes in gaming devices have, in many ways, paralleled changes that consumers have experienced with most forms of entertainment. Consumers today have access to high-definition 3D digital televisions and cinemas, surround sound, a seemingly unlimited array of media choices in the palms of their hands via smartphones, and the ability to play videogames on consoles with strangers around the globe via internet connections. The net result of these largely technology-driven developments is the creation of an expectation that similar experiences should also be available in the casino. Therefore, the slot manufacturer who can offer a layered and compelling entertainment experience in addition to a gaming transaction wherein the consumer has a mathematical chance to hit a jackpot will win the battle to attract today’s slot players. Konami Gaming, Inc. has experienced unparalleled growth over the past six years because it has delivered products that meet the evolving needs of today’s slot players. Konami Gaming, Inc. has experienced unparalleled growth over the past six years because it have delivered products that meet the evolving needs of today’s slot players. Konami has tapped its Born From FunTM roots as a leading videogame and entertainment provider in order to develop some of today’s highest performing games. A clear example of this can be seen with the Konami KP3™ platform. This new platform was designed to offer the type of lifelike 3D imagery, integrated graphics on multiple game screens, synchronized lighting effects, and powerful sound experience that today’s consumers expect in exchange for their discretionary entertainment spend. In Konami’s Mystical Pharaoh™ game, for example, customers can witness the video slot reels magically transforming before their eyes into three-dimensional rotating reels that virtually pop off the screen. Or, the reels can be laid flat by a magical sphinx who then converts individual symbols into “wild” symbols via mystical lasers in order to add to the richness of the player’s overall entertainment experience. Players today understand that with each spin, slot machines still represent a “chance” to win, but now they also expect these games to deliver entertainment that is guaranteed. Konami is uniquely positioned to deliver the type of real entertainment value that today’s slot player demands. For more information, www.konamigaming.com. 18 | Fall 2013

MULTIMEDIA GAMES As Multimedia Games introduces their products to the Canadian market, they bring w ith them their own brand of creativity and technology to gaming, resulting in the Play Louder™ experience that brings a player back to a game time and time again. “With the players of today, you need to enter tain them for an extended period of time and give them that Play Louder experience with a variet y of gameplay and bonus features, so that they’re at their machine long enough to hit those significant wins,” says Brad Johnson, VP of Product Management and Marketing.” This keeps them coming back to that game. That combination of entertainment and winnings creates the loyal player that every manufacturer and casino wants.” Multimedia Games feels their wildly popular and successful 5-Reel, 50-Line video game Carnival in Rio® will deliver that Play Louder experience that keeps bringing players back for more variety and big wins. With its great animation, such as the gyrating Dancer symbols; colourful Carnival-inspired graphics; straight-fromBrazil background music; and hot Free Spin Bonus, Carnival in Rio immerses the player in the festival atmosphere as they try their hand at winning more than 300,000 credits and 70 free spins. Says Johnson, “Carnival in Rio is a great example of an MGAM game that delivers everything a player is looking for these days when they sit down at a machine— a fun time with no risk of getting bored, because there’s so much going on between the graphics, music, and animations. Then you add in the big wins, and you have an experience that will draw the player back to that title.” For more information, visit www.multimediagames.com. SPIELO INTERNATIONAL Licensed brands are a big draw for slot players, but many of the licensed games on today’s casino f loor can lack game functionality that matches the fun of the brand. SPIELO International is changing that with licensed slots that not only go to great lengths to stay true to the feel of the original, but enter an entirely new niche: the booming market of casual gaming—a segment that, up until now, has been missed in the world of licensed slots—with Plants vs. Zombies™ from casual gaming giant PopCap Games®. With the current ubiquity of tablets and smartphones, casual gaming is rising in popularity for Canadians. We’ve addressed this branded license niche by bringing casual gaming to the casino f loor with our first

© 2013 Electronic Arts Inc. Plants vs. Zombies and PopCap are trademarks of Electronic Arts Inc.

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PopCap-themed slot machine, Plants vs. Zombies. It’s distinct enough to stand out in the midst of the more traditional brands, while remaining recognizable as a license and holding appeal for a new type of gamer, one who hasn’t traditionally played slots. For those who already know the brand, the interest in Plants vs. Zombies borders on fanatical, with millions of downloads of the casual game. We’ve incorporated popular and easily recognizable elements from the casual games into two spinning reel slot games. Fans will readily recognize the familiar sound effects and music. Even players not familiar with Plants vs. Zombies will quickly become converts as they experience the appeal of the accessible yet rewarding gameplay mechanics. There’s nothing like it on the casino f loor. Just beware of those zombies – they want to eat your brains! For more information, visit www. spielo.com. WMS GAMING The stunning, sleek BLADE cabinet, honed by player insights and casino operator feedback, is WMS' nextg eneration for-sa le cabinet. The BL A DE integrates a cutting-edge cabinet design, the amazingly fast CPUNXT®3processor, and a diverse library of content. Its entire suite of content and play mechanics is tailored to the cabinet’s tighter, more connected set of highresolution displays, which are designed to be highly effective in grabbing players’ attention. Among its features include seamless 23" displays with minimal space between high-def inition wide screen LCDs (1920x1080; 16:9); next generation "Halo" lighting that combines direct and i n d i r e c t i l lu m i n at ion; exclusive game content; premium digital sound system with enhanced clarit y; and a CPU-N X T3 Processor, W MS’ fastest CPU platform e ver. Pl a y er s

and casinos will also benefit from a new interior machine layout; the support for current peripherals and common player tracking systems; a modular de si g n appro a ch t h at a l low s for future modifications and upgrades; a refined, programmable button panel; and an integrated purse hook and mini-storage nook. The WMS BLADE™ cabinet's robust library of dynamic gameplay are also

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executiveq&a

Bill Robinson President and CEO of the Alberta Gaming and Liquor Commission

In August 2012, Bill Robinson assumed his role as president and CEO of the Alberta Gaming and Liquor Commission (AGLC) after over three decades of service with the Royal Canadian Mounted Police (RCMP). Now with over a year under his belt, Canadian Gaming Business reached out to Robinson to find out where the AGLC is heading and what this means for Alberta players. You spent 34 years in the RCMP prior to joining the AGlC. how did that prepare you for your work within Alberta's gaming industry? In addition to giving me experience leading a large org anization, my ca reer w it h t he RCM P inst illed a strong appreciation of the need to work closely with stakeholders. The AGLC work s w ith hundreds of liquor agencies and thousands of liquor licensees to maintain an inventory of more than 19,000 liquor products available to Albertans. It also works with about 14,000 groups t h at conduc t ch a r it a ble g a m i n g activities and thousands of businesses who deliver gaming products and ser vices to A lbertans. I k now the key to success for an organization like the AGLC is working effectively w it h ou r st a k eholder s, bu i ld i n g relationships with communities, and understanding the business needs of our retailers and licensees. What is your vision for the AGLC? It is impor t ant that we continue t o i nc r e a s e ou r k now le d g e a n d understanding of the products and s er v ic e s t h at A lb er t a n s e x p e c t . W hether it is accessing a licensing service or buying a Lotto 6/49 lottery

ticket, we need to meet Albertans’ doing and assessing this opportunity expectations. We will need to make from a social responsibility, consumer, better use of technolog y to meet and financial viability perspective. Responding to consumers’ these needs. ex pect ations is ver y impor t ant What are the greatest challenges facing fo r t h e f ut u r e o f g a m i n g i n ou r Alberta's gaming industry? What is the province. We’re keeping a close eye on the developments related to online AGLC doing to address these? There is ever-evolving competition gaming and see this offering as part of for consumer entertainment dollars. our future. While we have made many advances to support the gaming industr y in What do you believe are the biggest Alberta, we perhaps have not kept in trends affecting gaming in Alberta? line with ensuring the most modern Technolog y continues to play a key gaming offerings are available to role. Gaming enter tainment needs consumers. This presents a g reat t o b e con ven ient for pl ayer s a nd opportunit y for the AGLC in the accessible wherever and whenever they coming years as we look to f ind want to participate. Albertans look to w a y s t o mo d er n i z e t he g a m i n g their mobile devices for entertainment, experience in Alberta. It also allows connection, and for smooth customer us to ensure that responsible gaming service. We need to keep pace with this best practices are considered as we trend to meet the needs of consumers ponder this future state of gaming in their twenties. for Alberta. What’s next for gaming in Alberta? Innovation w ill be the main focus What are the most significant trends as we consider ways to ex pand affecting gaming in Alberta? W i t h m o s t p r o v i n c i a l g a m i n g gaming entertainment for Albertans. j u r i s d i c t i o n s a l r e a d y o f f e r i n g Ultimately, our focus is to ensure i n t e r n e t g a m i n g , a n d o t h e r s sustainable revenue grow th for the having announced their intent to A lberta Lotter y Fund and continue participate, this is certainly on the to support charities and non-prof it AGLC’s radar. We have been actively organizations for the benef it of all monitoring what other provinces are Albertans. Canadian Gaming Business | 21

marketing

The Changing Definition of Community Relations

Giving new meaning to “giving back”

By Jim Kabrajee

Defining community relations for a casino was once an easy task. It was usually called “giving back” and it meant providing financial contributions for local charities and service organizations. Today, however, casinos are trending toward more direct community involvement because local communities are beginning to expect more from local businesses. So what does that mean to you and why does it matter? The traditional practice of writing cheques as a way of “giving back to the communit y” doesn’t apply the same way anymore. It doesn’t have as much impact. Your donations are being taken for granted. Today, the communit y wants your casino to 22 | Fall 2013

become more actively involved in local activities. The results of a recent study by the Universit y of M a ssachuset t s D a r t m out h ’s C ent er fo r Pol i c y Analysis were published earlier this yea r. T hey d iscovered a qu ick ly growing trend at some casinos where 20% of visitors were not gambling

at all. Principally, those 2 0% were looking for dining and entertainment options. They further realized that most of those 20% were locals. This makes sense since we k now that the number of new casinos built during the past ten years has increased dramatically and means that fewer people are travelling long distances

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to visit casinos. Therefore, locals visiting a casino, as a percentage of total visits, have gone up, and this creates expectations that the local casino become a more active member in community events. Using dining as an example, it means that a property’s restaurants are being seen as direct competition for local eateries. The casino’s dining facilities are not there just for gaming patrons, they are competing with regional establishments so your casino is being considered a part of the community also. W hat can you do? There is a strong trend across Canada for restaurants to source more of their fare locally, supporting local farmers, wineries, bakeries, and producers of specialty packaged foods. Farmers’ m a rk et s a re p oppi n g up i n c it ie s i n su r pr i si n g numbers. A nd it’s not just the public demanding fresher produce; it’s also a strong desire to support local producers. W hen communities shift in this direction, it is incumbent upon your casino to look at the opportunity to grow your restaurant offerings, support your surrounding communities, and by all means promote your actions within the casino. Another opportunity for some properties lies right outside in the parking lot. There are times when the parking lots are under-used, particularly earlier in the day. They make ideal venues for a farmers’ market. It brings locals to the property and it does more than “give back” to the community; it becomes a part of it. Take it a step further and many of the items sold by local producers can be incorporated into your menus at the property while changing with the seasons. It’s a simple way to not only draw people to the property but to also demonstrate tangible community involvement. After all, not everyone is the recipient of a cheque from your casino, but by hosting a local event like a farmer’s market on your property, you manage to touch many locals. W hat's more, local involvement is the future of ef fect ive a nd long-la st ing com mun it y relat ions. Cheques come and go, and they are often just expected by local organizations, which is why maintaining and strengthening roots in the communit y results in greater community visibility and greater value for your community relations program. We’re not say i n g you shou ld stop w r it i n g t he cheques, but look at some relatively inex pensive ways to branch out into your community on a more regular basis. Simple things like a farmers’ market or offering the products of local businesses for sale can accomplish just that. If the Massachusetts results are an indicator, being more of a truly local business in the future and integrating into the local community is not just a short term public relations initiative, it should be an essential part of your business plan. Marshall Fenn is an integrated marketing and advertising agency located in Toronto specializing in casinos. Marshall Fenn has worked with over 20 casinos throughout the U.S. and Canada. For further information, contact: Jim Kabrajee at jimk@marshall-fenn.com

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Canadian Gaming Business | 23

specialsupplement

New Horizons Conference conference returns to Vancouver in 2014 After a successful first year, BCLC (British Columbia Lottery Corporation)’s New Horizons in Responsible Gambling Conference returns January 27-29, 2014. This second annual conference welcomes problem and responsible gambling experts and gaming industry professionals to Vancouver, British Columbia to learn and share new ideas, network with other professionals, and discuss what responsible gambling really means for the industry and its players. Over two days, the conference brings together academics, students, and industry leaders in responsible gambling research and policy to hear from over 15 industry professionals from across the globe. Tremendous developments continue to be made in responsible gambling practices around the world and New Horizons 24 | Fall 2013

provides opportunities to meet professionals in the responsible gambling field and share best practices and innovations, and network in a focused, industry-specific environment. “I anticipate this conference will build upon last year’s thought-provoking and insightful discussions, resulting in more connections and shared development amongst responsible gambling researchers, policy makers, and industry representatives from across the globe,” says Michael Graydon, President and CEO of BCLC. “The field of problem gambling and prevention and treatment is continually evolving and this event promises to provide a showcase of many recent developments.” For 2014, the New Horizons team has developed an exciting program of speakers and sessions packed with insight, information, and education.

specialsupplement These include presentations geared towards problem gambling treatment providers, prevention specialists, and those committed to delivering exceptional responsible gambling programming within their gaming operations. Returning to this year’s conference is Dr. Mark Griffiths of Nottingham Trent University with his presentation, ‘Social Responsibility in Gambling Marketing and Advertising’. “Mark was an insightful and very well received speaker at last year’s con ference. I ’m so plea se d he’s joining us again to build upon his 2013 presentation and share his latest research”, says Paul Smith, Director of Corporate Social Responsibility at BCLC. “Alongside Mark are some first time speakers that I think will really impress our delegates. I’m humbled to welcome them to our conference and our City. At BCLC, we are so serious about responsible gambling and it’s a treat to spend a few days with others from around the world that share that interest and passion.” First time speakers include Dr. Claudia Steinke from the University of Lethbridge who will present ‘The Psychological and Behavioural Impacts of Casino Design’. Steinke’s expertise merges the fields of organizational theory and design, health care management, service management and operations and architecture for insightful findings on the effects of design.

Bringing her experience in corporate social responsibility and the history and culture of Las Vegas, Dr. Jessalynn Strauss from Elon University will discuss ‘Exceeding Expectations: Social Responsibility in Gaming’. Several other Canadian and international speakers will round out the impressive line up of presenters.

John Luff, Founder of Sustainable Marketing, provides the keynote address at the 2013 conference.

Also returning is Mr. Don Feeney, Director of Research and Planning at Minnesota State Lottery, discussing ‘What the Public Thinks (and Why it Matters)’. “The response from the delegates in 2013 was incredible,” exclaimed Smith. “There was no doubt we would do another conference and put the feedback we gathered into making the second year even more valuable for delegates. We’ve come up with some new ideas for 2014 that I think will be popular additions to the program.” For the first time this year, New Horizons is inviting delegates to take part in a series of poster sessions. Posters will display research theories, methods, and outcomes and authors will be on hand to answer questions and discuss their studies. These sessions offer an opportunity for both delegates and presenters to share project initiatives and research (including preliminary findings), and gain valuable feedback and insight from other professionals. Submissions are now being accepted through the HorizonsRG website. One of the most talked about sessions in 2013 was the focus group, which asked seniors for their insights and experience gambling. This live session allowed delegates to watch a focus group being conducted. The result generated genuine and real-time Canadian Gaming Business | 25

specialsupplement

2013 speaker Don Feeny, Director of Research and Planning for Minnesota State Lottery, is slated to return in 2014.

feedback from senior gamblers and non-gamblers as they were led in a conversation on gambling practices and experiences. Building on this popularity, this session style is back in 2014 with a different focus group that will no doubt generate the same lively discussion. Also this year, New Horizons is trying a new method of note taking and display during a keynote session, called graphic facilitation. An artist will attend the session, listening and synthesizing main ideas and themes into drawings using a combination of images and words. These are captured on a huge sheet of paper, which is visible to participants in real-time throughout the session. Delegates can use the graphic recording as a discussion piece, a take-away to remember the session, a summary, or as a visual aid for absorbing the session content as it happens. The intention in 2014 is to further socialize the conference, using Twitter and a conference blog on HorizonsRG.com. The blog will serve to fuel responsible gambling discussion in the months leading up to the conference, as well as keep delegates and speakers up to date on conference planning progress and deadlines. Conference highlights will be shared as they are announced, guest speakers will divulge previews of their presentations, and responsible gambling conversations from around the globe will be discussed. The blog sets the tone for the conference early, giving delegates an idea of what to expect in January. Organizers are already promoting the twitter hashtag #HorizonsRG, encouraging delegates to begin the discussion online prior to their arrival in Vancouver. A tweet-up will be hosted late November, 2013 to generate further socialization with conference participants. Watch for details on the conference blog and @HorizonsRG. An enhanced trade show and exhibition f loor will again showcase state-of-the-art programs and products while the social and refreshment areas will allow for comfortable networking and work stations. Sponsors such as Bally and WMS will be showcasing their latest innovations with delegates throughout the conference. In addition to presentations and sessions, social events are offered, encouraging industry professionals to network, mingle and connect with others that are passionate about the responsible gambling industry, all on the backdrop of the beautiful Vancouver skyline. The New Horizons conference is located in the heart of Vancouver, British Columbia, in close proximity to the city centre and a variety of tourist attractions. During their visit, delegates are encouraged to spend some time exploring Vancouver’s world-renowned sights and attractions, many within a short distance of the conference location. For more information and to register for the New Horizons in Responsible Gambling Conference please visit www.horizonsrg.com. Follow us on twitter @HorizonsRG 26 | Fall 2013

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PURE Canadian Gaming

The Alberta gaming market has a brand new game in town. Formerly known as Casino ABS, the new PURE Canadian Gaming (PCG) brand reflects the passion that George Goldhoff, President and CEO, has for PCG’s service promise: “PURE service, PURE Rewards and PURE Entertainment.” 28 | Fall 2013

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“We have listened to what our guests and staff want and have responded to their desires by enhancing the appearance of our properties, strengthening our service standards and improving our Players Club; The all new PURE Rewards—the most generous and easy to use casino Loyalty Club in Alberta!” says Goldhoff. PCG's family of casinos live all across communities in A lber t a. It employs over 1,0 0 0 person nel a nd operates four full service casinos in Alberta—Casino Calgary, Casino Lethbridge, Casino Edmonton, and Casino Yellowhead—with over 2,900 slot machines and VLT’s, over 80 live-action table games, and 4 poker rooms. It is an experienced Canadian casino operator and the largest of its kind in the province. A s pione er s i n t he we st er n C a n a d i a n g a m i n g business since 1973, PCG continues to evolve to serve its loyal guests, which it has done for 40 years. And although the company was renamed in 2013, PCG's history goes back to 1973 with the inception of Alberta Bingo Supplies, which became known as Casino ABS. Heinz Oldach built Casino ABS into one of Alberta’s best gaming companies and the current leadership is committed to carrying his legacy into a new era. PCG offers Albertans better customer service, a higher level of entertainment, one of Alberta’s most popular player's club rewards program, and a strong commitment to the communities in which PCG lives and works. I n a dd it ion , P C G 's c a si no s i n E d mont on a nd Calgary features fresh new updates with new f looring, renovated restrooms, new wall coverings, new table felts and bumpers, and new gaming chips. The Food and Beverage department offerings are enhanced with new menus and a fresh new Noodle Bar concept designed in contemporary Asian décor and theme. The slot floor has also been redesigned for player comfort, making it easier to move around and find their favourite machines. PCG's new entertainment lineup features the classics in Canadian rock with the Rockin’ Alberta Tour and—what's more— entertainment at PCG casinos is offered free to Players Club members. “Everything that makes our guests feel welcome and entertained is our focus. We are continuing to update our image to ref lect our new brand, and improve our players’ experience,” says Goldhoff, “PURE Canadian Gaming is committed to offering the best in service, loyalty rewards and entertaining experiences at our Casinos in Alberta. Our customers expect us to grow

“As pioneers in the western Canadian gaming business since 1973, PCG continues to evolve to serve its loyal guests.” w ith the industr y and we have listened. A ll of our changes are designed with our guests in mind.” For more, visit PCG's new website at www.purecanadiangaming.com

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Canadian Gaming Business | 29

facilityprofile

Caesars Windsor Celebrates Five Years of Win

It's glasses up at Caesars Windsor where staff and patrons of the popular southern Ontario casino are raising a toast to the gaming facility's fifth anniversary and its exciting additions to come. This summer, the all-in-one resort kicked off its quinquennial with news it is pursuing new amenities for its guests, including a Johnny Rockets “Original Hamburger” restaurant, the Italian pizzeria Trattoria Uno, a renovated Artist Cafe, and a brand new bar in its casino floor. 30 | Fall 2013

“ We a r e p r o u d t o m a k e t h i s announcement as we celebrate our 5 year anniversary as a Caesars branded property,” said Kevin Laforet, President and CEO of Caesars Windsor. “As we pay homage to our past, we also look to the future and continually strive to remain competitive by offering our

guests exciting new experiences and amenities.” C a e s a r s W i n d s o r 's a n n i ver s a r y festivities included its deliver y of a $25,000 donation to local charities and a pledge to donate a percentage of its slot revenues on June 15, 2013. These charitable initiatives mark the casino's

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“Entertainment is a major unique selling point for us versus our competition and has helped us drive traffic, drive trial and support the Caesars brand.” latest contributions to the charitable sector and its continuing goal to serve an active role in its community. “Since the beginning, it has been important for Caesars Windsor to be a responsible corporate citizen by contributing to the health and vibrancy of our community, over and above our role as a major employer and significant tourism driver in the region. Caesars Windsor has donated more than $10 million to hard-working, worthy non-profit organizations that improve the health, diversity and environment in the Windsor-Essex region,” said Laforet. While the Caesars Windsor brand may be turning five, the legacy of the Caesars Windsor facility stretches back beyond its 2008 origins. In 1994, the Ontario government joined Caesars World, Circus Circus Enterprises, and Hilton Hotels to open Casino Windsor, the province's first casino in the renovated Art Gallery of Windsor on Riverside drive. The response from both Canadian and US gamers was immediate, motivating the Ontario Lottery and Gaming Corporation to up its ante with the introduction of The Northern Belle riverboat casino, which ran from December 1995 to July 1998. In 1998, the casino was relocated from its temporary location to a permanent home on the former Windsor Market site. Seven years later in 2005, the Ontario Government, OLG, and Caesars Windsor's staff embarked on a $400 million expansion project which set the stage for a 2008 relaunch showcasing the facility's new Caesars Windsor name, as well as 100,000 square feet of convention space, the Augustus Tower, new restaurants and bars, exhibition space, and a wealth of other amenities.

32 | Fall 2013

The relaunch also included the opening of a Colosseum entertainment centre which has played host to hundreds of celebrity performances. “The opening of the Colosseum in 2008 allowed Caesars Windsor to provide a world-class, state of the art venue to host some of the biggest names in music and entertainment,” noted Laforet, adding, “The 5,000 seat theatre allows avid music lovers to see and hear their favourite bands play live and up close including KISS, Billy Joel, The Tragically Hip, Celine Dion, Maroon 5, Bruno Mars, Reba, BB King, Journey, Jay Leno, Chris Rock, Chelsea Handler and Ke$ha just to name a few. Entertainment is a major unique selling point for us versus our competition and has helped us drive traffic, drive trial and support the Caesars brand.” Leading the way Catering to players and entertainment seekers from both sides the border, Caesars Windsor remains a major player in the Ontario gaming scene. Its management remains focused on building upon the world-renowned Caesars Entertainment brand, while serving as a positive force for change and growth within the WindsorEssex region. “Caesars Windsor continues to deliver what is most important to our guests,” said Laforet, “The best service in the Detroit region, world-class luxury amenities, and exciting entertainment. Continuing to focus on these elements allows our property to succeed in retaining loyal customers and attracting new business despite external economic challenges.” For more information, visit: www.caesarswindsor.com

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Outsourcing is Changing the Gaming Industry Early planning and stakeholder cooperation are critical By Erik Niemi and Abby Hakim Organizations e verywhere are increasingly turning to outsourcing to drive innovation and eff iciency. The gaming industr y is no different. W hat is different is the regulatory environment and spread of outsourcing due to the growth of internet gaming and the level of strategic partnering between industry peers (versus traditional retailersupplier relationships). For gaming industry organizations on both sides— users and providers—being upfront and proactive in addressing your audit and reporting requirements is critical. F r o m a r e g u l a t o r y a n d a u d it standpoint, management and boards of outsourcing user organizations rema in responsible for ensur ing ser vice providers maintain ef fec t ive cont rol env i ron ment s. This traditionally focused purely on performance; however, control failures in high-prof ile industries, increased regulation, and demand by management, auditors and boards for controls assurance have exploded the demand for Service Organization Controls (SOC) audits. The recent introduction of global standards for SOC reporting (including CASE 3416 in Canada and SSA E 16 in the US) have made them ubiquitous across geographies, and service providers are increasingly seeking SOC reporting to gain a competitive advantage. T h e r e a r e d i f f e r e nt t y p e s o f SO C repor t s cover i n g sec u r it y, processing integrit y, privacy, and systems availabilit y. SOC1 is the most commonly used. It pertains to f inancial reporting and is designed 34 | Fall 2013

for external audit needs. It covers initiation, authorization, recording, processing, and reporting of relevant f i n a nc i a l t r a n s a c t io n s /d at a a n d associated system access, changes, and computer operations. There are two types of SOC1 reports, depending on the signif icance of outsourced operations to the user organization and the level of assurance required: • Type 1: A simplif ied report with a n opinion from a qualif ied independent auditor on design and implementation of controls at a specific point in time; enables user organizations and their auditors to assess risks and controls. • Type 2: An expanded report with a full audit of control design and operating effectiveness over a 6 to 12 month period, and details on control testing and results; enables user auditors to rely on controls to reduce testing and avoid visiting the service organization. Although it is common for service organizations to start with Type 1 and then expand to Type 2, it is essential for user org anizations to discuss what t y pe of report(s) is required w it h t h ei r b o a r d a n d au d it o r s . Traditional “right to audit” clauses don’t cover SOC1 reporting, and if you need privacy assurance, which isn’t covered by SOC1, another SOC report may be necessary. Users and providers should agree up -front on repor t t y pe, t im ing a nd s cop e. T he more rep or t i n g requested, the greater cost, so focus on what you really need and ensure

cost responsibilities are also clear in the agreement. In the gaming industr y, there is a complexity involved with SOC audits that shouldn’t be underestimated by users or providers. Get advice from ex per ienced profession a ls to help n av ig ate st a keholder ex pec t at ions around repor t content, scope, and timing. Signif icant effort is involved in effectively documenting controls in the required format—and even more in testing and f ixing any issues—due to the necessary commitment by auditors and staff. Ex perienced practitioners can provide strategies and assistance to ease the process. W hile this prov ides just an o v e r v i e w o f t h e c o m pl e x it i e s o f out s ou rc i n g a nd SO C rep or t i n g , it is clea r t h at proa c t iv it y is k ey. Leaders in the gaming industr y are for ming deeper pa r t nerships w ith vendors and each other. If controls assurance requirements are neglected or ignored, the resulting operational and governance issues will be more dif f icult a nd costly a fter the fact. To avoid t h is m isstep, ma ke your reporting needs clear from the start and, if you’re a service organization, begin planning the audit process—and talking to your advisers—as soon as possible. To learn more about the effects of outsourcing and reporting on your organization, please contact Erik Niemi (erniemi@kpmg.ca), Partner, Risk Consulting, Systems Assurance, KPMG; or Abby Hakim (aahakim@kpmg. ca), Senior Manager, Risk Consulting, KPMG.

18 Annual Event 18 Annual Event th

th

June 23-25, 2014 Vancouver Convention Centre Vancouver, British Columbia

15 Annual th

“Where the Canadian Gaming Industry Meets” Canadian Gaming Summit

PLAN TO ATTEND CANADA’S PREMIER ANNUAL INDUSTRY CONFERENCE AND EXHIBITION!

The Summit sails to Vancouver in 2014

If your company is interested in exhibit or sponsorship opportunities at the Canadian Gaming Summit, please contact Richard Swayze at 866-216-0860 ext. 246 or richards@mediaedge.ca OFFICIAL PUBLICATION:

www.CanadianGamingSummit.com

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1. It was standing room only at the Monday Opening Reception in the stunning Ruelle des fortifications atrium in Old Montréal. 2. On the practice tee at the Monday ‘Golf Classic’ tournament at the Summerlea Golf & Country Club. 3. Savouring victory at the post-tournament BBQ and Awards Presentation. 4. Enjoying the Opening Reception with some ‘colourful’ friends. 5. Jim Trask, Scientific Games Assistant to the CEO, Global Operations, speaks at the Tuesday Opening Breakfast and Welcome. 6. Attendees received a warm welcome at the Summit’s Exhibition Floor entrance. 7. Delegates hear about the latest product offerings on the exhibition floor. 8. Enjoying the ambience and the view from the roof top at the Tuesday Delegate and Exhibitor Reception. 9. It was all smiles at the Awards Gala Reception at the Hyatt Regency Montreal. 10. The Wednesday Lottery and Gaming CEO Roundtable and Breakfast featured a lively discussion from a panel of industry CEO’s and senior executives. 11. 2013 Gala Charity donation cheque is presented to Daniel Dumont (centre) of La Maison du Père. 12. Sedalia Kawennotas Fazio leads the First Nations Welcome to begin the Awards Gala. 13. Twyla Meredith, President and CEO, Saskatchewan Gaming Corporation, accepts her award for Industry Leadership and Outstanding Contribution. 14. Winner of the First Nations Award for Leadership, Charles Ryder of the Carry the Kettle First Nation, Director of Casino Operations, SIGA. 15. Glen Sawhill, Senior VP Gaming Operations, Caesars Windsor, winner of the Industry Leadership and Outstanding Contribution Award. 16. Priscilla Whitney accepts the First Nations Award for Leadership on behalf of Tammy Whitney of the Tsuu T’ina Nation, Director of Dit’onik’odza Charities, Grey Eagle Casino. 17. Industry Leadership and Outstanding Contribution award winner Luc Morin, Director, Product Development, Société des casinos du Québec, has his award accepted on his behalf by Marie-Josée Parent, Senior Manager, Product Development. 18. The 14 piece Montréal Rhapsody Orchestra kept everyone on their feet with their covers of classic hits. 19. François-Patrick Allard, Managing Director of the Société des bingos du Québec, leads a session at the Charitable Gaming Conference in the Summit. 20. Winner of the First Nations Employee of the Year Award, Angela Higgins of the Caldwell First Nation, EMR Security Officer, Great Blue Heron Charity Casino. 21. Sonya Le Houillier, Director, Restaurants, Casino de Montréal, accepts Volunteerism and Community Service Award on behalf of Jean-Pierre Curtat, Executive Chef, Casino de Montréal. 22. Lorne Paudash of the Ojibwa – Hiawatha First Nation, Security Shift Manager, Great Blue Heron Casino, winner of the First Nations Award for Community Service.

2013 SUMMIT HIGHLIGHTS

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It was a meeting of the minds in Quebec this summer as gaming delegates from across North America rendezvoused in Montreal for the 17th Annual Canadian Gaming Summit, held June 17-19 at the Palais des congrès de Montréal. The event catered to all facets of the gaming industry with a diverse slate of sessions and presentations, a jam-packed industry exhibition, the Canadian Gaming Summit Golf Classic, and memorable networking events.

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Among the many Summit highlights were the 14th annual Charitable 9.

Gaming Conference, the Summit Welcome Breakfast Keynote from Paul Lauzon, Senior Vice President and Managing Director of Ipsos Reid West, and the Lottery and Gaming CEO Roundtable hosted by Bill Rutsey, President & CEO of the Canadian Gaming Association, which featured Jim Lightbody, Vice Presdient, Casino and Community Gaming of BCLC; Bob MacKinnon, President & CEO of Nova Scotia Provincial Lotteries and Casino Corporation; Twyla Meredith, CMA, FCMA, President & CEO of Saskatchewan Gaming Corporation; Dan Sanscartier, Vice President, Gaming Operations of Manitoba Liquor & Lotteries; Brent Scrimshaw,

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President & CEO of Atlantic Lottery; and Kent Verlik, Vice President, Lottery & Gaming of the Alberta Gaming and Liquor Commission. Guests were also treated to a number of valuable networking opportunities. These included a beautiful Opening Reception at the historic Ruelle des fortifications at the World Trade Centre, a view of the city from the rooftop of the Palais des congrès de Montréal during the Delegate and Exhibitor Reception, and a night of fun, food, and live entertainment during the Awards Reception and Charity Gala at the Hyatt Regency Montreal. We look forward to doing it all again during the 18th Annual Summit in Vancouver! 18.

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We look forward to welcoming you to 'sea to sky' country for the 18th Annual Canadian Gaming Summit on June 23-25, 2014, at the Vancouver Convention Centre in Vancouver, British Columbia. See you there! For more details visit www.CanadianGamingSummit.com

THANK YOU TO OUR 20132013 CANADIAN CANADIAN GAMING GAMING SUMMIT SUMMIT SPONSORS SPONSORS HOSTHOST

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