Canada's Premier Gaming Industry Magazine
Vol. 10 No. 3
www.CanadianGamingBusiness.com
Summer Fall 2015
DELIVERING FOR THE CONSUMER Finding the perfect product-market match Marketing to Millennials Fostering Employee Engagement Through Leadership
PM 40063056
Stacking the Odds Against Cyber Crime The Rewards and Challenges of the Mobile Revolution
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Fall 2015
Volume 10 Number 3
Publisher
Chuck Nervick chuckn@mediaedge.ca 416.512.8186 ext. 227
Editor
Sean Moon seanm@mediaedge.ca
Advertising Sales
Chuck Nervick chuckn@mediaedge.ca
Senior Designer
Annette Carlucci
contents 16
www.CanadianGamingBusiness.com
32
44
annettec@mediaedge.ca
Designer
Jennifer Carter
Production Manager
Rachel Selbie
jenc@mediaedge.ca rachels@mediaedge.ca
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Circulation Manager
Maria Siassina circulation@mediaedge.ca
Proudly owned and published by:
5
EDITOR’S NOTE
6
MESSAGE FROM THE CGA
10
COVER STORY
16
MARKETING
Delivering for the Canadian Consumer – Finding the perfect product-market match
Marketing to Millennials — The ultimate challenge for the casino industry 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: Chuck Nervick 416-512-8186 ext. 227 chuckn@mediaedge.ca Copyright 2015 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
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LOTTERIES Mobile Lottery Gaming — The rewards and challenges of the mobile revolution
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FANTASY SPORTS Skills vs. Chance — The benefits of testing fantasy sports games
24 CHARITABLE GAMING Transforming an Industry —
June conference tackles changes to charitable gaming
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CORPORATE PROFILE Bet Rite – Solutions and service that make a difference
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EXECUTIVE Q&A John Stinson, CEO, Manitoba Liquor and Lotteries
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FACILITY PROFILE Hastings Racecourse and Casino
34 EMPLOYEE ENGAGEMENT The Leadership Connection —
Fostering employee engagement through leadership
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GAMING INNOVATION Inspired Innovation in new gaming products
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FINANCE Cyber Security — Stacking the odds against cyber crime
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CANADIAN GAMING SUMMIT Highlights from the 2015 Gaming Summit
Official Publication of the Canadian Gaming Summit
Canadian Gaming Business | 3
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editor'snote
Gaming Summit Keeps on Growing EACH YEAR IN EARLY SUMMER, thousands of delegates come together to learn, network and celebrate success at the annual Canadian Gaming Summit. At this year’s spectacular event on June 16-18 in Windsor, Ontario, we were welcomed with open arms by the superb staff and facilities at one of Canada’s most beautiful gaming and hotel venues, Caesars Windsor. Not only did attendees have a chance to mix and mingle with a who’s-who of the Canadian and global gaming industry, they also enjoyed several first-class educational tracks and breakout sessions to learn more about what makes our industry tick and where it is headed in the future. In addition, the large trade-show floor was jam-packed with dozens of exhibitors showing off their latest innovative products and services to help gaming operators improve their businesses. A couple of firsts at this year’s Summit were the Food and Beverage Conference (chaired by F&B Director Joe Moore of Caesar’s Windsor) and the Gaming Security Conference (chaired by Executive Director Gerald Boose of the Gaming Security Professionals of Canada). Both conferences were fantastic new additions to the already impressive array of seminars and plenary sessions to provide delegates with an inside look at our industry. Thanks to all who made this year’s Summit another one to remember! Meanwhile, plans are now well underway for the 20th annual Summit slated for June 13-15, 2016 in Ottawa-Lac Leamy, where you can expect our National Capital Region to raise the bar once again for the event where “Canada’s gaming industry meets!” Besides our cover story from the Summit Opening Plenary on how gaming organizations can continue to deliver the best products, services and amenities to the Canadian customer, be sure to check out the stellar lineup of regular columns and features in this edition of Canadian Gaming Business, including: • How charitable gaming organizations are transforming their industry; • What casinos can do to attract a new generations of gamers; • A case study of how to foster employee engagement through leadership; and • How companies can start stacking the odds again cyber crime Along with the above, Michael Lipton and his team of gaming law experts are back once again to take on a number of timely regulatory topics in the Fall 2015 edition of Canadian Gaming Lawyer. From fantasy sports opportunities in the Canadian market to an in-depth look at provincial laws prohibiting offshore iGaming, be sure to explore these and other hot issues in today’s world of gaming regulation. On a final note, if you have any story ideas, suggestions or comments, feel free to contact myself at seanm@mediaedge.ca or CGB’s Publisher Chuck Nervick at chuckn@mediaedge.ca for advertising information. We hope you enjoy our latest issue! Cheers for now, Sean Moon Managing Editor, Canadian Gaming Business
Canadian Gaming Business | 5
messagefromtheCGA
The relative risk of money laundering and terrorist financing in Canadian casinos BY BILL RUTSEY, PRESIDENT AND CEO OF THE CANADIAN GAMING ASSOCIATION
CANADA HAS A ROBUST and comprehensive anti-money laundering and anti-terrorist f inancing (A ML/ATF) regime, which promotes the integrity of the f inancial system and the safet y and securit y of Canadians. It supports combating transnational organized crime and is a key element of Canada’s counter-terrorism strategy. Canadian casinos are an integral component of this regime. The Canadian gaming industry takes the issue of money laundering very seriously and has strict standards and procedures in place to deter and detect criminals attempting to exploit casino and racino operations. The federal government released a report in early A u g u s t w h ich out l i n e s it s a s s e s sm ent of m o n e y laundering and terrorist financing risks in Canada. For the f irst time, the gaming industry has been included alongside other industries such as bank s and other financial institutions. The report provides an overview of the risks of money laundering and terrorist financing before the application of any mitigation measures, which include a range of legislative, regulatory and operational actions that prevent, detect and disrupt money laundering and terrorist financing. According to the report, land-based casinos have a “high” money laundering vulnerabilit y rating which places them as being less vulnerable than banks, trust companies, corporations and money services businesses, all of which are ranked “very high.” The report did not f lag casinos as being vulnerable to terrorist financing. Specific to casinos the report concludes that “given the larger number of products and services offered to clients such as cash purchases of chips, slot machines accepting cash, currency exchanges, self-service ticket redemption
6 | Fall 2015
machines and so on, brick and mortar casinos are exposed to higher inherent money-laundering risk scenarios than provincially regulated online casinos.” The Canadian gaming industr y has implemented world-class security and surveillance systems and has thoroughly trained staff to detect any suspicious activity, including signs of potential money laundering. Casinos are also highly regulated environments with prescriptive rules that cover everything from how games are played to how cash and chips are handled. To quote from the report, “Canada has a comprehensive AML/ATF regime that provides a coordinated approach to mitigating the inherent risks identified in this assessment and combating money laundering and terrorist financing more broadly. The AML/ATF regime is operated by 11 federal regime partners, eight of which receive dedicated funding totalling approximately $70 million annually. “The inherent risks identif ied are being addressed t h r ou g h a s t r on g r e g i m e t h at fo c u s e s on p ol ic y coordination, both domestically and internationally; the prevention and detection of money laundering and terrorist f inancing in Canada; disruption activities, including investigation, prosecution and the seizure of illicit assets; and the implementation of measures to ensure the ongoing improvement of the A ML/ATF regime.” For those interested in reading the report in detail, a copy can be found at http://w w w.f in.gc.ca /pub/mltfrpcfat/index-eng.asp
CASCADES CASINO: ENTERTAINMENT REDEFINED Gateway announces grand opening of new B.C. gaming destination
O
n Wednesday, August 19, Gateway Casinos & Entertainment officially opened its do ors at Cascades Casino Kamloops, a $40-million, first-class gaming and entertainment destination in the heart of Kamloops, B.C. With a design inspiration built around “ P l a y,” C a s c a d e s C a s i n o K a m l o o p s features 65,000 square feet of premium e n te r t a i n m e n t s p a c e , a s p e c t a c u l a r gaming floor, live entertainment and many dining options to suit any taste, including Gateway’s signature restaurants MATCH Eatery & Public House and the debut of Atlas Steak + Fish, the new fine-dining restaurant. “With Cascades Casino Kamloops, we position it as entertainment redefined and our customers will experience this from the first time they come through our doors,” said Tony Santo, CEO, Gateway Casinos & Entertainment. “From our signature Match Eatery & Public House, to our expansive new gaming floor, to our great employee team – we believe that Cascades is going to be a hit with our customers and neighbours alike.” O ver 6 0 0 co mmunit y members and leaders were invited for a grand opening
ceremony with Canadian recording artist and six-time Juno winner, Colin James, followed by a larger celebratio n with customers. During the night’s festivities Gateway Gives – Gateway’s community and charitable program – raised funds for the Royal Inland Hospital Foundation, the official charity for the grand opening. With almost 25 years’ experience in the Canadian gaming industry, Gateway has been a proud member of the Kamloops community for more than 20 years. This new project helped boost the local economy
during construction with increased purchasing and use of local suppliers and businesses. With the opening of the Cascades Kamloops, an additional new 200 permanent jobs have been added with an estimated annual payroll of $7 million. "We are looking forward to the new venue – it has generated 200 new jobs, $40 million in construction value, and most importantly, an improved traffic solution for the area," said Peter Milobar, Mayor of Kamloops.
Cascades Casino Kamloops is the first Gateway property to be unveiled as part of an ambitious redevelopment strategy to dramatically improve the customer ex p e r i e n c e by c re a t i n g a c o m p l e te enter tainment destination that of fers customers much more than just gaming. New redevelopment projects are currently underway at two Gateway properties in Edmonton, AB. “A g re a t b i g w e l c o m e to t h e n e w Cascades Casino in Kamloops,” said To d d S t o n e , M L A K a m l o o p s – S o u t h Thompson. “ From the creation of hundreds of new jobs, to the array of new entertainment and dining options, congratulations to Tony Santo and the Gateway Team for demonstrating such significant confidence in Kamloops by making this huge investment in our city.” F o r m o re info r m ati o n, g o to w w w. cascadescasinokamloops.com. For the latest news, follow Cascades Casino Kamloops on Facebook www.facebook. com /CascadesCasino - Kamloops and Twitter @KamloopsCasino.
ENTERTAINMENT
REDEFINED
www.cascadescasinokamloops.com
Gateway Casinos & Entertainment is pleased to celebrate the opening of Cascades Casino Kamloops. The $40 million project has created over 200 new jobs for the local economy and features an array of culinary and entertainment options like MATCH Eatery & Public House and Atlas Steak + Fish. Cascades Casino Kamloops is the first property to be unveiled as part of Gateway’s ambitious redevelopment project.
“Many thanks to the community and residents of Kamloops, Mayor Peter Milobar and Kamloops Council, Minister Todd Stone, Minister Terry Lake, BCLC and our valued Gateway employees for supporting this project and helping us commemorate the Grand Opening on August 19th.” - Tony Santo, CEO, Gateway Casinos & Entertainment
www.gatewaycasinos.com
coverstory
DELIVERING FO CANADIAN CON
10 | Fall 2015
coverstory
OR THE NSUMER Finding the perfect product-market match
Gaming products from lotteries to traditional casino games to charity offerings and horse racing are now being offered through a range of channels including land-based casinos, online/mobile and hospitality networks, such as bars and restaurants, which is changing the market overall and affecting existing product offerings. But what about the consumer? And how well are gaming products and channels meeting consumer needs? Canadian Gaming Business | 11
coverstory
The Opening Plenary at the 2015 Canadian Gaming Summit saw our panel discuss current trends in matching gaming products with consumer needs and explored various industry sectors to understand how changed should be embraced, or feared. Panel:
Moderator: Bill Rutsey, President and CEO, Canadian Gaming Association
Tony Santo, President and CEO, Gateway Casinos
John Kennedy FitzGerald, President and CEO, The Intertain Group
Bill Rutsey : Today’s and tomorrow’s customers exhibit a greater comfort with technology, participate in social media and increasingly seek out enriching, personalized experiences that allow them to make the most of their leisure time and provide a sense of participation, community and involvement. They expect real-time access to highly customized player experiences. Research suggests that these players feel like they are always multi-tasking, cherish “me time,” and are willing to forego many basic gaming offerings in favour of those experiences that provide the most relevance, personalization and excitement. Companies that can deliver on these expectations by providing customers with choices and incentives customized to ref lect their personal preferences will be rewarded. We are fortunate to have with us here today a panel of Canadian gaming industry leaders to give us their thoughts on these trends and opportunities, and to give us some insight as to how they are focusing on their customers’ changing priorities and preferences. I’d like to start with John Kennedy FitzGerald. Fitz, you operate online bingo internationally, multi-jurisdictionally and completely online. Here in North America bingo is seen as appealing to an older demographic with limited growth potential. Tell us why that’s wrong, and what you’re doing to change that perception. 12 | Fall 2015
Rick Meitzler, President, Novomatic Americas
Louie Velocci, Partner, KPMG
John Kennedy FitzGerald: If you look at our business, it’s completely different from what I’ve experienced here in Ontario in going to bingo halls. I think you’re going to see over the coming years a switch from the traditional model of bingo to what we see online now. To give you an introduction of what Intertain Group does, we operate the largest bingo company online in the world. Most of our business is based in the United Kingdom. We are also in Sweden and Spain. Bingo in the U.K. from an online perspective is a very interesting product. We have the highest retention rates in the industry due to the fact that bingo in our business is a community. On any given day we have 50,000 active users playing online bingo. Our average demog raphic age — and this may surprise you — is 41 years old. So, it’s not that perception of the older woman at the bingo hall just playing bingo. Bingo has become a virtual lottery. It’s auto-daubed. Bingo, although it is bingo-led, really is a community of the social aspect of the chat rooms and is what creates the stickiness of our product. We’ve brought together from an online perspective what you see in the halls, where it becomes a gathering place. On any given day we have hundreds of different rooms with chat hosts that host the same customers each and every
coverstory
day. It’s a great mix between social media and gaming where’s it’s not in your face. We have thousands of players that just come on to participate in chat rooms so gaming and gambling isn’t really the focus — although it is a by-product of our offering and really what drives our prof itability. Our focus is on the community. Our return to players is the highest in the industry out of all our competitors. We believe in the long-term value of a player because the community creates bigger community for us. That social aspect of what we’re offering is attracting the younger player or the person that may not have access to a bingo hall, which you see here in Ontario. My view on bingo in Ontario is that we have a huge opportunity here to create these great regional gaming centres that we see over in the U.K. If we look at what happened across Europe and especially in the U.K., it gives us some great ideas in terms of rejuvenating that demographic in bingo here in Ontario.
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Bill Rutsey: Tony, I’d like to discuss threats and opportunities. How can more traditional gaming forms compete and thrive in a virtual, real-time, on-demand world?
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Tony Santo: In Canada, the traditional gaming industry is relatively young. One of the issues we have is that we don’t want to become stagnant because if we do we could end up going the way of bingo. One of the biggest threats is entertainment. It’s not other casinos because generally we are far enough apart and we don’t compete with other casinos. We compete with other entertainment that people will have a choice to do in the communities in which we operate. The best example I could give is that when I started at Gateway, I started reviewing 12 of our properties in western Canada. Two things struck me. One was that in our full-service casinos, the amenities we had in them were not draws to our customers. In other words, I call our restaurants “f illing stations.” If you went to our casino to gamble and you got hungry, you would eat. But never would you say to your wife “let’s go to the Cascades Casino in Langley and go to dinner and then gamble.” Very quickly we started developing restaurant concepts that we could deploy in our system like Match Eatery and Public House . . . so that our customers would want to come to our casinos to eat, drink, listen to entertainment, watch their favourite hockey team, and if they gambled, that’s okay and if they didn’t, that’s okay too. The second thing which was more concerning to me is that we had six casinos or CGCs (communit y gaming centres) in our system where really all they had was slot machines, a few table games and a snack bar. That, to me, is a dying breed. Unless we can f igure out a way to improve these facilities and develop an entertainment facility then these would eventually go the way that we saw bingo go. We are undertaking an aggressive relocation and redevelopment approach in our company. An interesting example would be that we have
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coverstory
“I think we all have to get better at delivering entertainment. What does this business come down to? Taking care of your customers because they can get that product anywhere. Ultimately, if you don’t take care of your customer, they’re going to find somewhere else to go.” — John Kennedy FitzGerald a 14,000-square-foot casino in Kamloops, B.C. and we are relocating that to a 65,000-sq-ft casino that’s going to have three restaurants — a steakhouse, a Match and a buffet — two bars and, of course, all the entertainment that we can provide so that people want to go there. If they want to gamble, that’s great. Before we can play in that social market, we need to have amenities that are relevant and that people want to go to. Louis Velocci: I’ve got a different view because I deal with professional services as they relate to your casinos and gaming organizations. The interesting theme is that you guys are really adapting and getting more diverse to try to change the demographic and really customize that experience. It would be interesting to understand how you are getting some of that data and really how big data is in your world as it relates to changing those products going forward. Tony Santo: For us, data is key. Having the data, available in real time and being able to analyze that data – not just marketing or customer research. Slot performance, slot products, labour, customer ser vice — are key to everything we do. Bill Rutsey: Let’s talk regional and market differences. Rick, Novomatic is a huge international supplier of a myriad of products through multiple platforms and channels. How different are markets both nationally and internationally? Is it more than just product preference? Is there a “sweet spot”? Rick Meitzler : Obviously Europe is a little bit of a different market. If you look at Novomatic, we’re a big European company and we operate machines along with being a manufacturer in Europe and the differences over there are kind of substantial in the way that we (approach) the players. The players there are more locals, we don’t really have a tourist (market). If you go to a venue in Europe you don’t see the resorts such as Caesars Windsor where you have all the amenities. It’s more like, “I’m going in, I’m gambling and I’m going home or I’m going to dinner on my way out.” 14 | Fall 2015
Going back to some of the points John mentioned, the 41-year-old female — that’s pretty much our target, 45-plus female, here in North America. The sweet spot we have to try to reach is we have to make the games entertaining. It’s like with golf, if you hit that one good shot, you come back; same thing with the slot experience. You want them to come in, hit that one jackpot. It’s memorable and they come back. Everybody talks about the Boomers versus the Millennials but eventually we’re still looking for that 40-plus player that’s going to have the money base and eventually the Millennials will be there. And they are a different group in the way they handle things. You’ve got to realize that and take it into account that these players now are starting to become a lot more tech-savvy and we have to attack that market from the entertainment value as well. Bill Rutsey: In a related question, how important is loyalty now? Who are these new customers, what do they want and how do you deliver it to them properly? John FitzGerald : I think we all have to get better at delivering entertainment. What does this business come down to? Taking care of your customers because they can get that product anywhere. Ultimately, if you don’t take care of your customer, they’re going to find somewhere else to go. Louis Velocci: We’re seeing across a lot of the industry that I help service that in a lot of cases you become the broker as opposed to the actual deliverer of that pure product itself. You’re actually brokering the experience for the individual. We may not actually deliver all of it ourselves; we may have to bring in some niche players and other parties to help that whole process and bring some different combinations to it. I think that’s what we’re seeing in the industry from an IT perspective and from a service-delivery perspective. Bill Rutsey: Rick, as a game developer, are the guys developing the games that your customers want or do you find sometimes that your customers are ahead of your offering?
coverstory
Rick Meitzler: I do believe games are not all the same and we do try to be a little bit different. One of the things we have to do is look at he markets and segments of the markets. With the younger generation we’re starting to see they play tables more. So maybe you start to tailor some of your game design to pick out players that play a g ainst t ables (and move them) to electronic tables. Loto- Quebec has done a really good job with The Zone that’s really geared to younger people. It’s about training your players to come in and play. You also have to have the entertainment value, just like the bingo side or the casino side.
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Bill Rutsey: What about games that mix skill and chance? To ny S a n t o : I t h i n k it ’s t he ne x t evolution of gaming to really get into the skill-based side. There’s been talk about setting up special rooms where people could play against each other for a pool. It’s something we’re pursuing and if it can draw us the more casual gamer and the Milennials then that’s a nice way to keep it going and evolve our business. John FitzGerald: With respect to skill gaming, we do have as par t of our offering skill-based games on our site which we don’t make money from. It’s actually to draw in players, the casual gamer that may transition themselves from a not-for-money player to a realmoney player.
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The above article contains excerpts from the 2015 Canadian Gaming Summit Opening Plenary. To view the complete video of the plenary session, visit www.canadiangamingsummit.com. Canadian Gaming Business | 15
marketing
MARKETING TO MILLENNIALS Attracting players young and old — the ultimate challenge for the casino industry BY KATY YAM
Ah, the infamous Millennial crowd — the darlings of the modern commercial age of consumption and the target market for all retailers and services in Canada and around the world. Attractive due to their significant disposable income at 20 per cent of total income generated (compared to 30 per cent by Baby Boomers), this majorly underemployed, highly indebted group who live mostly with their parents prefers to spend money on unique experiences over acquiring large tangible goods like homes. They represent a quarter of the population in Canada and when looking at our southern neighbours, Millennials have actually exceeded Boomers at 83 million versus 74 million Americans, confirming them as a potentially lucrative target market. 16 | Fall 2015
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experience everything new and extreme just for the fun of it. On the other end of the age spectrum, Boomers are coming into an unprecedented age of financial and time freedom. With mortgages paid off and children who have left the nest, they are discovering a renewed fervour to finally live life fully before their health declines. With YOLO, notice how these two polar groups are increasingly overlapping to share similar experiences; with grandparents travelling the world with their grandchildren, exploding social media use to communicate with each other, attending U2 concerts or even skydiving together. They are leaving the working cohort of Generation X out of the fun and bonding around YOLO.
striking
FINDING THE RIGHT MIX
ONE OF THE BIGGEST challenges casino operators face today is how to bridge the entertainment gap for these two seemingly opposite target markets. With aging Baby Boomers anchoring the majority of our revenues and in decline, we are all looking for ways to regenerate our client base including the exploration of younger segments such as Millennials. Many see the needs of these two groups as being m iles apa r t , requir in g mut u a lly exclusive investment strategies tailored to each segment for products and communications. With industry-wide casino revenues in decline, targeting two unique markets is costly; wouldn’t it be fabulous if there were a unique communication vector that resonated with both markets without sounding generic? YOLO – THE COMMON DENOMINATOR
Sur prisingly, there is a common denominator, a common battle cry that unites Boomers and Millennials — it’s “You only live once” or “YOLO” for short. Anyone who has ever interacted with young adults aged 25 and less has witnessed their desire to live life to the fullest, to be adventurous and
Understanding that YOLO is the modern version of “carpe diem” is an insight that casino operators can leverage to streamline product offers and marketing communications. By emphasising the shared desire to “seize the day” and live life fully in each moment, we can appeal to both these markets simultaneously. The challenge lies in finding the right content to hit the YOLO button simultaneously for both groups to drive behaviour and action. The key message, however, is that this proverbial sweet spot exists! At the Société des casinos du Québec (SCQ), we have been working on creating experiences that entertain these two generations since 2008. It has been a long perilous road of continuous testing with gaming and restaurant products, multimedia environments and entertainment triggers of all nature and sizes. Before I share some of our successes and key f indings, let me provide some background information to facilitate the understanding our R&D pathway. SCQ is division of Loto-Québec, a crown corporation run by the Quebec government. With four casinos and t wo hotel resort properties employing 4,600 employees, we generate just under $800 million in revenues where our net gains are invested back into the public sector. In 2007, our casinos showed initial signs of patron decline, in particular consumers under the a g e of 30. Increasing costs resulted in table limits starting as high as $25 a hand on weekends, making us a costly value
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marketing they witnessed first-hand the jackpot frequency and it made the environment extremely vibrant and exciting. EXPAND PRODUCT OFFERINGS
proposition for young clients looking to experiment. As a result, we acted quickly and initiated an ambitious R&D strategy called “Le casino du futur” where we dared to imagine what the casino of the future would look like. This roadmap for renewing our clientele has been one wrought with many trials and even more errors that have proved extremely rewarding in lessons learned and improvements. We knew then that we had to start developing our future casino immediately if it was to see the light of day in 2010 and beyond. ATTRACTING YOUNGER PLAYERS
With poker on the rise in 2008 and its relevance with younger markets, we wanted to open our first poker room with affordable price points that were both competitive and attractive to younger clients. After a series of failed initial negotiations with our dealer unions, electronic table games (ETGs) were launched instead of live dealer tables to give us the introductory price point desired by new clients. This initial foray into ETGs was an immediate success. We ordered more ETGs all while working with our unions to bring in live dealers with real cards to 18 | Fall 2015
offer two distinct experiences. When the real card-live dealer poker finally launched, the ETGs emptied out. This taught us two valuable lessons; real cards are preferred to simulated cards if choice is given at the same price point and game experience facilitation is important; there is a need for someone to animate and interact with the clients to create a fun atmosphere. With ETGs, clients were left on their own to create the ambiance which was hit or miss depending on the players present. We realized that it was better for us to play this facilitation role and offer real cards, to help break the ice and heighten the overall gaming experience. In 2011, we worked to improve win perception for our slot patrons by building an immersive multimedia environment called the “Le Volcan.” A highly entertaining shared-win experience was created, a departure from the solitar y w in ex perience routinely encountered only by the pat ron at the w in ning machine. Cl ient s a ppre c i at e d c elebr at i n g and sharing their jackpot win with everyone playing and at the moment it occurred. Non-winning patrons felt an increased chance at winning because
In 2012 , I nterac t ive Roulet te wa s l au n che d t o f u r t her d e velo p t he facilitator role in delivering personalized entertainment to clients. By automating the f inancial risk s of pay ment and chip management through the ETG, we shifted our staff training towards a per for m a nc e mo del. E qu ippi n g the real ball and wheel ETG with an entertainer gave us the ability to adapt the table atmosphere to the clients present, from a subtle animation to a full party with high f ives all around; animators were able to manage each patron’s personal ex perience within the collective group. We have since launched Interactive Blackjack with t he sa me pr i nc iple s of h av i n g a n entertainer at the front of the table. I n 2 013, we broug ht to life “L a Zone,” our most ambitious project to date. We created an innovative immersive multimedia, multisensory and multigaming environment with 50 to 80 gaming stations hosted and managed by professionally stage-trained entertainers taught to build excitement with crowds. Equipped with intense lighting and sound systems, floor-to-ceiling screens to display game results, Instagram pictures or a live hashtag feed, each host entertains players with their unique persona and musical soundtrack on stage. With $1 roulette and $5 blackjack, clients can learn without being subject to traditional table “looks” and negative comments when making novice mistakes in game play. In addition to live game results for blackjack, roulette and baccarat generated by two entertainers, clients can try slot games, electronic blackjack, roulette and baccarat for a total of 14 live or simulated games without ever needing to leave their seat. MOTIVATING THE MILLENNIALS
La Zone has been a hit with Millennials s e e k i n g a n a c t i o n - p a ck e d s o c i a l experience where no evening is ever the same. Their desire for overstimulation, personalized game choice and to live unique variations of the same experience with all their friends has made La Zone a product that appeals to this f ickle generation.
marketing
“La Zone has also created a favourable public awareness buzz for us, positioning the casino as a viable entertainment option for Millennials who had previously not considered us for their outings.” The short-term wins for the SCQ have been many. By physically locating La Zone with its bright lights and loud music far away from our traditional casino floors in historically dead floor space, we have been able to increase our overall profitability. Millennials get their own space away from the more tranquil environments that our core Boomer clientele prefers. La Zone has also created a favourable public awareness buzz for us, positioning the casino as a viable entertainment option for Millennials who had previously not considered us for their outings. But
destination for younger generations ensuring our commercial continuation. As the future slowly unfolds, the SCQ will continue to experiment, plan and develop the casino of the future. Our focus is to leverage YOLO whilst ensuring that our entire entertainment product offering is relevant for all segments from Baby Boomers, Gen X, Millennials (Gen Y) and the future Gen Z. Coupled with our continuous learning from La Zone and other ambitious projects, we will assuredly be launching most importantly, La Zone has become the next big breakthrough in the coming our living, breathing in-house test years, so stay tuned as we continue this laboratory for this elusive target market. journey! Our animators get to try new gaming and entertainment ideas weekly with instant feedback, as Millennials will let Katy Yam is the Manager of Slot Product you know quickly if they like or don’t Management and Business Intelligence at like something. La Zone has removed La société des casinos du Québec. With over costly guesswork out of testing new 10 years of managing national brands in concept s wh ich were prev iously the consumer packaged goods industry, she estimated through surveys or focus has spent the last six years implementing groups that never gave us the real pulse the 4Ps marketing model within the casino of what the commercial reality would framework. For more information, visit www. be. The long-term win for us is to casinosduquebec.com or find Katy on LinkedIn become a top-of-mind entertainment at ca.linkedin.com/in/katyyam.
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Canadian Gaming Business | 19 rama_cdn_gam_bus_ad.indd 1
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lotteries
Mobile Lottery Gaming The rewards and challenges of the mobile revolution
With smartphone and tablet usage at an all-time high across Canada, gaming organizations face a never-ending challenge of not only trying to keep up with the pace of technological change, but also with rising consumer expectations. Like other sectors of the Canadian gaming industry, provincial lottery corporations are discovering both the rewards and challenges of adapting to the new world order of mobile online gaming. Canadian Gaming Business recently asked senior executives from Atlantic Lottery Corp. and British Columbia Lottery Corp. about the ways lottery organizations are approaching the new realities of the connected world. Here is what they had to say: WITH MOST PROVINCIAL JURISDICTIONS NOW OPERATING AN ONLINE GAMING SITE OR PORTAL, WHAT DEVELOPMENTS HAVE BEEN HAPPENING WITHIN YOUR ORGANIZATION WITH RESPECT TO MOBILE LOTTERY GAMING?
Cameron Adams: BCLC operates PlayNow.com that provides a full range of products including lottery, casino, poker, bingo, and sports betting. A primary focus for BCLC moving forward will be to integrate the mobile experience across our Internet, retail lottery, and casino business. In some cases this will be custom experiences only available on mobile devices, while in other cases mobile is a complement to existing experiences with the goal of providing a connected experience across channels. Louis-Philippe Lussier: For several years our players have had the option to view game results in a mobile-friendly manner on the mobile web and within our iOS app. In March 2015 we added lottery ticket purchasing capabilities to our app, which 20 | Fall 2015
Participants: Cameron Adams, Director of Product and Business Development, EGaming, British Columbia Lottery Corporation
Louis-Philippe Lussier, Senior Manager User Experience, Atlantic Lottery Corporation
is optimized for iPhone and iPad. We are actively working on bringing additional options to our players, including offering our app on Android devices and optimizing other product categories such as iBingo for mobile. WHAT ARE THE BIGGEST CHALLENGES WHEN IT COMES TO LOTTERY GAMING ON MOBILE DEVICES AND HOW DO YOU SEE ORGANIZATION ADDRESSING THESE CHALLENGES?
CA : A big challenge is the rapid pace of change in both technology and customer expectations. As app usage on mobile devices increases, people’s expectations are increasing as well, based on the experiences they have with the latest mobile game or mobile application. In a regulated environment such as lottery or casino gaming, player expectations are set by
lotteries the latest hit mobile game and new social game experiences, therefore an ability to adapt to these changing expectations is critical to stand out and make an impact. LL: Lotteries have been accustomed to having complete control over the technologies that serve their products. Those days are gone with the emergence of mobile. New devices and form factors appear all the time, as demonstrated by the latest wearable technologies hitting the market. Combine this with a constant stream of updates on the major mobile operating systems and there is a natural inclination to design for the lowest common denominator because it is easier to manage. Despite the complexities of the mobile environment, customer expectations are high. There is a need to strike the right balance between offering a great user experience, building something that is easy to maintain, and delivering responsible ROI to our shareholders. WHAT ARE THE KEY COMPONENTS OR FACTORS IN ESTABLISHING A RESPONSIBLE AND SUCCESSFUL MOBILE LOTTERY GAMING PLATFORM?
CA: A great user experience is a key component to success with mobile. This means not trying to insert as many features and functions as possible just because they are ‘cool’. Customers increasingly are adapting and responding to clear, defined user journeys that aren’t bogged down by useless functionality. Furthermore, these experiences need to take into account the context of players’ use of their mobile device. For example, how does mobile complement the retail experience or increase convenience? Likewise, for the business, what are the key features that are driving value for customers that provide a return to the business; mobile is increasingly complex and costly for development in a regulated industry. LL: Focus on the user. Offer features that address unmet needs, especially those that can’t be addressed in other channels. Recognize the uniqueness of the mobile space; don’t assume a copy/paste of your desktop presence. Build on top of a strong RG toolset. WHAT ARE SOME OF THE BIGGEST UNEXPLOITED OPPORTUNITIES FOR MOBILE LOTTERY GAMING AND HOW CAN ORGANIZATIONS MAKE THE MOST OF THOSE OPPORTUNITIES?
CA: There are untapped areas for the experience beyond basic convenience drivers. For example, mobile can be a new way of purchasing lottery, but merely putting a traditional lottery product on a mobile device does not necessarily provide significant business changes or drive new player acquisitions. Therefore, new games, new experiences, integration with a retail experience, and gamification of non-transactional elements of the lottery player journey hold many opportunities.
LL: Our industry is just scratching the surface of selling products on mobile. There needs to be more thought and investment put into mobile-specific games and functionality. We see numerous untapped cross-channel opportunities. Companies like Starbucks use mobile to enhance their retail experience, even though their eCommerce potential is limited. Lottery is in the great position of having a product that can be delivered efficiently at retail and online so we have lots of room to bring these two channels together through mobile. HOW WILL TECHNOLOGY CONTINUE TO AFFECT THE CUSTOMER EXPERIENCE FOR MOBILE LOTTERY GAMING AND WHAT MUST LOTTERY ORGANIZATIONS DO TO BETTER ENGAGE CUSTOMERS ON THESE PLATFORMS?
CA: Technology continues to push the boundaries for the lottery industry whose sales remain primarily rooted in the traditional retail model. New hardware and devices such as the wearable segment offer many opportunities, but the value proposition for players and the business should be clear before chasing the latest shiny object. LL: What we know for sure is technology will continue to evolve, and that evolution is almost impossible to predict outside the “faster, more power” kind of way. Lotteries will have to be more responsive to these changes, quicker than what we are with traditional lottery channels as the rate of evolution means we are much more exposed to the next disruptive change. We need to build teams with the skills and savvy to effectively adapt new technologies for our market, and empower them to act with urgency. Checking the box to say we support a new device or form factor isn’t good enough; we need to create useful experiences for our players.
WHAT KIND OF IMPACT ON RESPONSIBLE GAMBLING PROGRAMS DO YOU EXPECT AS A RESULT OF INCREASED MOBILE LOTTERY GAMING AVAILABILITY?
CA: At BCLC we are proud to have PlayNow.com be the first Internet gaming site to be certified under the Responsible Gambling Council RG Check program. This is a result of implementing a variety of tools and options for players to manage behaviour, but also extends to policies and procedures that support responsible gambling beyond what appears on a screen. This integrated and broader approach is more effective for operators looking to offer online and mobile gambling options. LL: Responsible Gambling is top of mind anytime we launch a new product or expand into a new channel. The underlying principles of RG are entrenched in our mobile channel regardless of the device on which a player interacts with us. Responsible gambling experts have acknowledged that our toolset met the needs of the mobile space. We established a strong foundation when we launched alc.ca on desktop, and have continued to fine-tune our RG delivery over the years. Canadian Gaming Business | 21
fantasysports
SKILL VS. CHANCE The benefits of testing fantasy sports games BY NOAH DEAN
According to the Fantasy Sports Trade Association (FSTA) website, the estimated number of fantasy sports players has grown from 12.6 million to 56.8 million in the last 10 years. Because of the growing popularity of fantasy sports and increasing consumer demand for better transparency in how the games operate, Gaming Laboratories International (GLI®), responding to inquiries from regulators and industry providers, has highlighted the benefits of having fantasy sports sites properly tested and certified. 22 | Fall 2015
fantasysports
GLI HAS DEVELOPED a unique testing methodology that can demonstrate the role of skill and knowledge in a gaming context to satisfy the needs of fantasy sports vendors to provide clarity with regard to how their games operate. “Fantasy Sports” is a category of games that derives its outcomes based on real-life sporting events. Fantasy players select a roster of athletes to fill a fantasy team, and the performance of a roster is determined by the actual performance of the athletes over a preestablished time period. Generally, games can be categorized as games of pure sk ill, games of pure chance, and games of skill and chance. A game of pure skill is one in which chance or luck has no role in establishing the final outcome of the game. Many classic games fall under this category, including chess, checkers, mancala and go. Games of pure chance are those in which players have no choices in the game or when the choices have no meaningful impact on the final outcome. Examples include snakes and ladders, craps, roulette, and the card game “War.” However, many games fall somewhere in between. A game of both skill and chance may have chance elements that dominate the outcome at times. Additionally, the outcome of players of equal skill can be truly random; however, the skill element manifests itself over the long-term with players of unequal skill. Some examples are backgammon, poker, blackjack and bridge. Most fantasy sports games would fall under this category as well. PIONEERS IN TESTING
GLI has pioneered fantasy sports application testing for clients seeking supporting evidence that their games ref lect the knowledge and skill of their fantasy players. To establish the necessary contrast in performance between players of varying skill, GLI
programs t wo t y pes of simulated players – the unskilled and skilled. These simulated players play against each other using historical sports data. Unskilled players have no knowledge of skill beyond knowing the basic game rules. They select their rosters at random, within the rules established by the game, and potentially satisfying certain reasonableness criteria such as exceeding a usage threshold of a salary cap budget. Skilled players select their rosters algorithmically and based only on publically available information at the time of selection. A programmed algorithm, written and customized to the game format by GLI mathematical analysts, helps assure the integrity of our testing process because it can only look at past data. PROVIDES CONTRAST
The simulated, skilled player does not claim to provide and is not intended to provide optimal play – that challenge remains to be pursued by the millions of players out there. It is intended to provide a measureable contrast against the unskilled players. Testing a game in this way can pot ent ia lly g enerat e one of t wo conclusions: 1. The skilled player outperforms the unskilled players, earning more points or winning more match-ups, and the degree of out-performance is measurable and demonstrable to be statistically significant. This clearly indicates that the outcomes of the game reflect the knowledge and skill of the participants. 2. The skilled player either does not outperform the unskilled players or does not outperform the unskilled players by a large enough degree that statistical significance can be established. This conclusion admits three possible interpretations – either
the game does not have a measurable skill element, the employed algorithm is not sufficiently skilled, or the amount of data is insufficient to demonstrate a clear difference in skill. SUMMARIZES THE RESULTS
W hen testing concludes, the client receives a n of f icial GLI repor t, summarizing the rules of the game format, the testing conducted, and the testing results. It is important to understand that GLI certifications do not contain legal opinions or issue any statements regarding the legality of fantasy sports. However, the GLI report is a critical component of any legal analysis that may subsequently be conducted by private sector lawyers, regulators or other government officials. Certifications also provide valuable information to consumers to create transparency for a fantasy sports service or certify that games meet appointed technical standards. Moreover, GLI's findings provide a clear summary of the technical testing results, which are intended to examine the role of knowledge and skill. Before analysis can begin, the client should be prepared to list exactly how the athlete statistics are used to determine the final outcome of the fantasy game and provide official historical data of all statistics used. The amount of data needs to be sufficient so that a skill algorithm will have enough data to make good decisions.
Noah B . D ean , PhD, i s D ire c t or of Mathemati cs at Gaming L aboratorie s International, LLC (GLI®). His expertise lies in the fields of discrete probability and stochastic processes. Before joining GLI®, he taught at the University of Maine at Machias, developing curriculum and teaching several courses in math and statistics. For more information, visit www.gaminglabs.com.
TRANSFORMING AN INDUSTRY June conference tackles changes to charitable gaming BY PATRICIA PETROLO
This past June, the Ontario Charitable Gaming Association (OCGA) once again partnered with the Canadian Gaming Summit to hold Canada’s Charitable Gaming Conference (CGC) 2015 at Caesars Windsor. This unique event focuses on the charitable gaming sector as a whole. It provides a venue for the industry — charities and not-for-profits, suppliers, government, and gaming centre operators — to share ideas. As one attendee mentioned, “It was the best conference of the three that I have attended.”
24 | Fall 2015
charitablegaming
THE THEME of this year’s conference was Transformation. This theme ref lects the changes that we are seeing in the charitable gaming industry in Ontario and across Canada. The introduction of technolog y in gaming centres across the country is having a profound effect on charitable gaming. In addition, changes to the Criminal Code will impact the management of charitable gaming products including 50/50 draws. We are seeing a shift in not only products, but also in the delivery mechanisms now and for the future. The evolution of marketing and promotion from print, radio and television to social media is inf luencing the way the industry promotes and markets itself. Sessions offered on this topic looked at social media not only from a charity perspective, but also from an operator perspective. This year’s education sessions covered these topics and the many changes that are inf luencing charitable gaming now and in the future. Our dynamic speakers and moderators shared both their time and expertise with the audience. These presentations are available for downloading by visiting http://www.charitablegaming. com/Public/Current-News. RAVE REVIEWS
Gary Green, one of our session panelists, expressed his enthusiasm for this event. “It was a pleasure to participate in the Canadian Gaming Summit Charitable Gaming Conference panel on behalf of my client, Ortiz Gaming,” said Green. “I love the conference, the participants, and the quality of the conference itself. I speak at a dozen or more gaming conferences each year – and truly this one has among the highest quality attendees of any show anywhere in the world.” In Ontario, since the introduction of cGaming with Ontario Lottery and Gaming, the industry has raised over $91 million for charities and not-for-prof its. Gaming centres in Windsor, Breakaway Gaming Centre and Paradise Gaming Centre, part of the Community Gaming & Enter t ainment Group, were t wo of the original six pilot sites. On June 17, during the Canadian Gaming Summit Break fast, the Ontario Charitable Ga ming A ssociat ion, a long w ith Ont a r io L ot ter y and Gaming, took the opportunit y to celebrate the contribution that cGaming has made to the local Windsor communit y. Greg McKenzie, Senior Vice President, Lottery & Charitable Gaming, OLG, presented a mock cheque to Windsor Mayor Drew Dilkens for more than $15 million, to represent the monies raised in Windsor through cGaming charities. RECOGNIZES CONTRIBUTION
In accepting the mock cheque, Dilkens recognized the importance of cGaming to the more than 200 charities in the local Windsor community. “Today’s announcement tells us that this is a great initiative and it’s making an important difference in the lives of so many here in the City of Windsor,” said Wilkins. “We are lucky to have the Paradise
and Breakaway Gaming Centres in our community and we thank them, and OLG, for the work that they do to support local charities.” The Ontario Charitable Gaming Association also hosted a luncheon for CGC attendees. Our keynote speaker was Greg McKenzie, who spoke about OLG’s on-going commitment to the charitable gaming sector and the need for all partners to continue to work together to stabilize and grow the charitable gaming business. There were plenty of opportunities for everyone to mix and mingle and share ideas outside of the formal education sessions offered at this year’s event. The fun started with the Opening Reception at the Riverside Drive Patio. We not only enjoyed the festivities, but took the time to go down to the waterfront to see the Pan Am Torch Relay Run. We watched and cheered as one of OCGA’s very own charity members carried the torch. NETWORKING OPPORTUNITIES
On Wednesday evening, gaming equipment suppliers hosted events at various venues offering attendees complimentary drinks and appetizers in a relaxing atmosphere. The fun and networking continued into the late evening as informal gatherings happened in the lounge areas at Caesars Windsor. While there was plenty of ‘shop talk’, there were also plenty of opportunities to just catch up with colleagues. As we continue to see the evolution and transformation of the charitable gaming industry, it is exciting to see the industry come together and network, share ideas and discuss what is happening in the charitable gaming sector across Canada. Thanks to all who attended and participated in the 2015 CGC and we hope to see you at our next event in Ottawa/ Lac-Leamy from June 13–15, 2016. If you have any interesting topics or ideas or, would like to speak at next year’s event, please contact Patricia Petrolo, OCGA, at 905-539-0065 or via email at ppetrolo@charitablegaming.com.. As the Member Services Coordinator for the Ontario Charitable Gaming Association, Patricia Petrolo provides advice, support and assistance to charities and not-for-profits raising funds through charitable gaming. She is responsible for Canada’s Charitable Gaming Conference and works closely with Canadian Gaming Summit staff. For more information, visit www.charitablegaming.com Canadian Gaming Business | 25
corporateprofile
BET RITE:
Gaming solutions and service that make a difference
Bet Rite Inc. is a Canadian owned and operated company focused solely on bringing world class gaming products and services to the Canadian casino market. The management team brings more than 40 years experience in project management, interior slot signage, slot machines, table games, systems hardware, bill validators, progressive products, and LCD display solutions to provide customers with well-rounded gaming business solutions.
26 | Fall 2015
corporateprofile
AN AUTHORIZED REGISTERED gaming vendor in ever y prov ince across Canada, Bet R ite began in 20 09 as the brainchild of company founders, President R ichard Cone and Chief Operating Off icer Billy MacLellan. These t wo seasoned veterans of the Canadian gaming market saw there was a need for a service-oriented gaming supply company that was focused on and dedicated to the Canadian gaming customer. This led to the bring ing together of their respective companies, Progressive Gaming Consulting and Macklyn Casino Services, to form Bet Rite Inc. “The thing that has allowed us to grow from a relatively new entrant as
a company in the Canadian gaming market is that our focus is purely on the Canadian marketplace and our understanding of the uniqueness of the Canadian marketplace,” says Cone. “It is different than the U.S. and it is different than in other parts of the world because of the nature of the regulatory environment and the level of government operation that the law requires. That understanding and that experience, coupled with the ser vice focus — that we also service what we sell and distribute — is really the foundation of our success. We’ve t a ken the company from a relatively small size to a tremendous amount of revenue
a nd g row t h for a ll of ou r sa les partners in a fairly rapid fashion because of these reasons.” BUILDING SOLID PARTNERSHIPS
Bet Rite is the Canadian distributor a nd ser v ice prov ider for: Cra ne Payment Innovations bill validators; Tr a n s a c t t ick et pr i nt er s; O r t i z Gaming electronic bingo; Interblock elect ron ic t able g a mes; KGM Gaming casino signage, slot bases and pit stands; Gary Platt seating; 3M touch screens; M appedin interactive touchscreen directories; and Flexible EL signs. Bet Rite’s product partners are considered “best of breed” in their
Canadian Gaming Business | 27
corporateprofile respective categories. The company provides customers with a single-vendor approach offering multiple product lines and services to meet the needs and challenges in the Canadian market. “With the consolidation of the industry in terms of some of the manufacturing on the OEM side, there are some newer companies springing up that are looking for entry into the Canadian marketplace,” says Cone. “There are also some new technological innovations and products that are helping to fuel that. We see that there are some real opportunities with some of these newer players in Canada and to be able to help them best display some of the products and get them to market in the fastest and most successful way.” FOCUSED ON SERVICE
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Technology that counts. CranePI.com 28 | Fall 2015
Cone says that at Bet Rite, customers receive the kind of quality and service they expect from an industry leader. The company is always evolving as the needs of its customers change and as new opportunities are created in the market. Cone and MacLellan say they have made it the company’s responsibility to know their customer and their business. “The biggest challenge is probably that the market has really entered its maturity phase in Canada,” explains Cone. “There are not a lot of new properties that are opening or being built so the market is not expanding as rapidly as it did throughout the prior 15 or 20 years. Obviously it’s harder for everyone to grow the business. Those are some of the challenges that some of our partners and customers face as well: How are we going to attract a new generation of gamer and how are we going to get more eff iciency out of the market and out of the products and operations? That’s where we feel our knowledge and expertise helps both our partners on the supply side and our customers and Canadian gaming operators.” TRAINING AND SUPPORT
Bet Rite provides all service including installation, training, and maintenance. Their technical teams are fully trained on each of the products, providing customers with fast and reliable support. In addition to the Bet Rite technical team, the service team from Macklyn Casino Services has been working with Canadian casinos since April 2007 and continues to provide the same convenient, quality services that have made them a leader in the casino signage service industry. “We want to continue to expand our partnerships,” says Cone. “Our business model is really based on having a best of breed in each of the product categories of offerings in gaming. Whether the seating or signage or slot games or other products, we like to partner with the best and try to be a full-service supplier. We’d like to continue that expansion into other product categories and other partnerships that we’re exploring. We believe that is the future for Bet Rite, that’s where the growth is going to be and where we add value and efficiency to the marketplace.” SHARE COMPANY VISION
The company’s “service-f irst” philosophy is emphatically shared by MacLellan, who has dedicated much of his career to formulating such a vision.
corporateprofile
“Previously, we all worked for different gaming companies,” says MacLellan. “The larger companies from the U.S. or different jurisdictions usually are all about the sale. Once the sale happens, then that’s it. What we’d like to focus on is not only the sale but taking care of everybody after the sale. We feel that’s what brings customers back each time. We pride ourselves in providing custom solutions. Even if it is something that we don’t usually do but is something they need, we’ll actually go out and either source it or have it made.” Cone echoes MacLellan’s sentiments, a dd i n g t h at a s a c u st om solut ion s provider, Bet Rite is able to integrate their own strengths with those of their partners in order to better ser ve the Canadian gaming industry. “I spent the first half of my career in the industry on the customer side,” says Cone. “Being able to transition and take that expertise and knowledge and to use that to provide better service from the vendor community back to the Canadian customer is the thing that I feel very proud of and most excited by.” For more information, visit www.betrite.ca
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SAS and all other SAS Institute Inc. product or service names are registered trademarks or trademarks of SAS Institute Inc. in the USA and other countries. ® indicates USA registration. Other brand and product names are trademarks of their respective companies. © 2015 SAS Institute Inc. All rights reserved. S144062US.0815
Canadian Gaming Business | 29
executiveq&a
JOHN
STINSON CEO, Manitoba Liquor and Lotteries Corporation
Since being appointed as the new CEO of the Manitoba Liquor and Lotteries Corporation earlier this year, John Stinson has been working diligently with the board of directors and executive management to develop the corporation’s strategic vision and build upon its previous success in generating revenue for the province of Manitoba. TAKING OVER from Winston Hodgins in February, 2015, Stinson has spent the last 30 years working in the health and social services fields. He has worked on the front lines as a health educator and community animator, worked as a policy advisor and manager for Health Canada, and worked as a senior health executive in the community, provincial and private sectors. Prior to his appointment at Liquor & Lotteries, Stinson was CEO of Interlake-Eastern Regional Health Authority in Manitoba, was Vice President of Acute Care and Planning and then the CEO of South Eastman RHA. Prior to joining South Eastman, Stinson was the Assistant Deputy Minister of Corporate and Provincial Program Support for Manitoba Health. ALTHOUGH YOU HAVE BEEN IN YOUR NEW ROLE AT MANITOBA LIQUOR AND LOTTERIES FOR SEVERAL MONTHS NOW, WHAT WERE YOUR INITIAL IMPRESSIONS OF THE CANADIAN GAMING INDUSTRY AND WHAT AREAS DO YOU ANTICIPATE WILL BE THE MOST CHALLENGING FOR YOU PERSONALLY?
The gaming industr y is ex periencing rapid change as societ y, commerce and technolog y are all evolving. There are clearly new opportunities and challenges that gaming is facing, including the growing importance of connecting with a younger demographic. 30 | Fall 2015
What I find commendable is the level of collaboration and organization between jurisdictions in Canada, despite differences in how gaming is organized and operated from province to province. I share some of the same challenges as other business leaders, namely to keep our organization nimble and responsive to shifting customer preferences and an evolving customer base. WHAT DO YOU THINK WILL BE THE MOST PERSONALLY REWARDING ASPECTS OF WORKING IN A LEADERSHIP ROLE IN THE CANADIAN GAMING INDUSTRY AND WHY?
I came to Manitoba Liquor & Lotteries with three decades of experience working in health care, including as CEO of two regional health authorities (RHAs). I’m looking forward to applying what I learned from those roles especially in terms of engaging diverse stakeholders and viewpoints in order to make sustainable progress. I think there’s a lot that the gaming industry has to offer Manitoba and the rest of the country, especially if we work hand-in-hand with everyone who has a stake and truly listen to what they’re saying. Having been with Liquor & Lotteries for six months now, I can also say that we have an excellent group of employees and there is a lot of excitement for the future. It’s a real pleasure to lead this company.
executiveq&a
IN WHAT WAYS HAS YOUR PAST EXPERIENCE IN THE HEALTH AND SOCIAL SERVICES SECTOR PREPARED YOU FOR YOUR ROLE AT LIQUOR & LOTTERIES?
The formation of Manitoba Liquor & Lotteries resulted from the merger of Manitoba Lotteries and the Manitoba Liquor Control Commission. Around the same time, 11 RHAs were amalgamated into five. I oversaw one of those RHA mergers as CEO and have been able to bring that experience of managing complex organizations and organizational change to Liquor & Lotteries. Coming from the health care sector I have been acutely focused on the careful allocation of limited resources, and that’s going to translate here into enhancing returns on every business investment. Health care is also an industry with a great many voices, and the ability to work with so many stakeholders should serve me well in this industry. More generally, I have a deep appreciation and passion for community health matters, including community outreach. One of the priorities for Liquor & Lotteries will be to build upon its leadership position in social responsibility, which of course is a multi-faceted topic. WHAT’S YOUR VISION FOR THE FUTURE OF LIQUOR & LOTTERIES AND ITS ROLE IN THE GAMING COMMUNITY IN MANITOBA AND CANADA?
In a national context Manitoba Liquor & Lotteries will continue to participate and collaborate with other jurisdictions on prevailing industry matters. For instance, Manitoba has been an advocate in support of Bill C-290 and single event sports betting. It’s something that customers want and we need to be focused, of course, on those customer preferences. From an operational perspective, it’s more important than ever that we make decisions that are based on data and evidence; that we effectively communicate to our very broad set of stakeholders including players, business partners, government and support agencies; that we make each and every employee an ambassador for the corporation and accountable to uphold our standards; and that we further our level of transparency. WHAT DO YOU BELIEVE ARE THE GREATEST GROWTH OPPORTUNITIES FOR GAMING IN CANADA AND WHY?
This is something that Canadian Gaming Business has done an excellent job of covering but does bear repeating. Players are looking for new and engaging experiences. They’re looking to connect non-gaming and gaming activities, and this doesn’t necessarily refer only to a casino environment. Research is showing in particular that the younger generations are spending more on non-gaming amenities than gaming, which can’t be ignored. Our Club Regent Event Centre is a direct response to that, and we are going to continue developing our casinos in this direction including partnerships with the private sector to establish a boutique hotel and two new restaurants at our Club Regent site. As well, the social and sharing aspect of gaming continue to grow, as it does in the rest of our increasingly digital lives. Online gaming has clear growth potential in this regard, but again there’s room to acknowledge this in our other business lines.
There are of course unique regional and jurisdictional factors that also come into play. For instance here in Manitoba, the regulatory frameworks surrounding liquor and gaming have been streamlined and better synchronized. For us, this translates into an ability to offer a more seamless entertainment experience for customers. Exposing new customers to the gaming environment by attracting them with non-gaming amenities will continue to be a key strategy going forward. WHAT ARE THE GREATEST CHALLENGES FACING THE CANADIAN GAMING INDUSTRY TODAY?
For some time now there has been the realization that certain forms of gaming are maturing and revenues have plateaued, demanding innovation from suppliers and a renewed focus on total customer experience from operators. The need to better understand customers is relevant to many of our product lines. From that will come questions such as: How do we reposition lottery products that resonate with moderate and light players without alienating core customers? At the same time, we can’t be so focused on external challenges that we forget to foster trust, enthusiasm and creativity in our employees. There has never been a better time to invest in our people because those working on the front lines of the industry are a tremendous pool of creative ideas. WHAT PRODUCT AND SERVICE OFFERINGS DOES LIQUOR & LOTTERIES CURRENTLY BRING TO THE INDUSTRY?
Over the past few years Liquor & Lotteries has been enhancing its non-gaming amenities at its two casinos, Club Regent and McPhillips Station. About a year ago we opened the doors to our Club Regent Event Centre that can host up to 1,400 in a variety of configurations thanks to a unique in-floor seating system. The venue has been tremendously successful, and we are continuing to invest in both casinos. We’re growing our player pool on PlayNow.com, which delivers a great range of games including some peer-to-peer offerings in partnership with British Columbia and Quebec. We of course sell regional and national lottery products, and these are offered on PlayNow.com as well as at retail. Our recently refreshed video lotto network has shown sales growth in the past year and we are working closely and continuously with our three vendors to hone this product line for our market. WHAT’S YOUR PHILOSOPHY FOR DELIVERING THE BEST GAMING EXPERIENCE FOR THE CUSTOMER, YOUR ORGANIZATION, GOVERNMENT STAKEHOLDERS AND THE GAMING COMMUNITY?
I’ve challenged my leadership team and the entire organization to commit to being progressive, empowering, accountable and transparent. Among other things this means always seeking improvement, making evidence-based decisions, providing the right tools and information to staff, letting people do their jobs and giving them the right support, being open and honest, and demonstrating pride in the work we do and the products and services that we offer. I believe that business success for all of our stakeholders will flow from that approach. Canadian Gaming Business | 31
facilityprofile
HASTINGS RACECOURSE AND CASINO
BY GREG DOUGLAS
On a sun-drenched holiday Monday afternoon on August 3, the scene at Hastings Racecourse and Casino was one of merriment for upwards of 10,000 racing fans and profound satisfaction for management. IT WAS B.C. CUP DAY at Hastings, traditionally one of the major events of the thoroughbred season in Vancouver. It is a t ime when solely Br it ish Columbia-bred or B.C.-owned horses take part in six stakes races with purse money totaling $375,000. The merriment for the fans stemmed from a victory in the richest race on the card: the $100,000 Redekop B.C. Cup Classic. A five-year-old chestnut gelding by the name of Square Dancer stole the hearts of his 200 new owners by f inishing f irst by a nose after stumbling slightly at the start of the 1 1/8th mile feature. Known as the Hastings Racing Cub, the 200 owners each invested $250 for two horses purchased by the local racing industry: Square Dancer and 32 | Fall 2015
Urban Achiever, a two-year-old colt who has yet to run. SHARING THE EXCITEMENT
Friends and family of the owners were invited to share in the excitement of Square Dancer’s victory in a winner’s circle so jammed the gathering spilled onto the middle of the track to pose for a wide-angle souvenir photo. “It was the most memorable B.C. Cup in the eight years that I’ve been here,” sa id Da r ren M a cD on a ld , Hastings Racecourse General Manager and Director, B.C. Racing. “Things went so smoothly you would have never guessed it was our biggest crowd of the year and our largest mutuel handle of the season at over $1.3 million. It was a great day for the racing industry.”
Things have been on the upswing at Hastings Racecourse and Casino since the owners of the historic site — Great Canadian Gaming Corporation — announced last October a two-year extension of their operating agreement for its Hastings Racecourse property with the City of Vancouver. “It allows us to carry on working with industry stakeholders towards a longterm, sustainable horseracing program at Hastings,” MacDonald said at the time. “We can now move forward as we continue to offer live and simulcast racing as well as an exciting gaming experience.” EXPAND SLOT OFFERINGS
A total of 600 casino slot machines are available to racing patrons just steps from the Hastings Racecourse tarmac w ith numerous food and beverage options available. Since the introduction a few years ago of Friday Night Live racing, Hastings Racecourse and Casino has successfully managed to attract a younger demographic to complement the ‘old guard’ of regulars. Friday Night Live racing cards throughout
facilityprofile the month of August each year have become an entertainment destination for the 19-to-35 crowd that enjoys live bands, discounts on food and beverages and wandering wagering ambassadors who teach them horseracing’s betting process. “The casino obviously benefits from their presence at the track,” MacDonald says. “Some of our new customers have told me that Hastings is the place to be and the place to seen on Friday nights.” A total of 150 slots began operating at the site in November 2007. A n additional 450 slots were added the following August. ADDS COMMUNITY VALUE
Each year Hastings Racecourse and Casino contributes to a Community Benef its Program whereby several charitable g roups and nonprof it organizations are given the opportunity to raise funds on a live racing day. The successful par ticipating groups that submit applications at an annual January meeting are invited to t hei r C om mu n it y Day at t he Track that includes a direct donation of $5,000 from Hastings Racecourse and Casino, plus exclusive use of the Marquee Tent with a further $1,500 food and beverage donation. Additional funds are raised t h rou g h 5 0 / 5 0 d r aw s a nd si lent auc t ion s. O ver t he pa st s e ver a l years organizations in the HastingsSunrise neighbourhood and across Vancouver have been recognized by the Community Benefits Program. “ We’re proud to include t hese non-prof it org a n i z at ion s i n t he C om mu n it y D ay s at H a st i n g s ,” M a cD on a ld s ay s. “ E a ch of t he selected charitable groups is ver y deserving and we encourage them to apply each year whether they are new to the program or have been selected in the past.” BENEFITS CHILDREN
As part of the lease for the Hastings Racecourse facility from the City of Vancouver, Great Canadian Gaming Corp. committed to the construction of a $4.4-million childcare centre. It opened on April 1, 2011 for use by the residents of the immediate neighbourhood including racecourse
backstretch workers and the Hastings Sunrise communit y. The Centre includes a mix of spaces for infants, toddlers and pre-school children. Great Canadian helps pay for the cost of the operation that equates to approximately $200,000 annually. Also as part of the lease for the racecourse facility, Great Canadian committed to annual payments of $500,000 in greening fees to be invested in the redevelopment of the Hastings Park grounds in east Vancouver. Through its Community Legacy Fund, Hastings Racecourse will invest $2 million over the next 20 years into the local community. In November 2007, Hastings made its first $100,000 payment to the City of Vancouver and every year invests another $100,000 into the Fund. The City manages the Fund and with community direction
uses it to provide benefits and mitigate problems in Hastings-Sunrise. Other community projects include a grooming school and learning centre for young people seeking careers in the racing industry. The 2015 thoroughbred racing season at Hastings runs from April 25 through to October 25. Hastings Racecourse and Casino is located in the heart of Vancouver on the Pacif ic National Ex hibition grounds. It offers numerous dining options, private and public event facility rental opportunities, spectacular views of the famous North Shore Mountains and outstanding guest services. Greg Douglas is a media consultant and special events coordinator at Hastings Racecourse and Casino. He writes a sports column for the Vancouver Sun and Desert Sun in Palm Springs, CA. Canadian Gaming Business | 33
employeeengagement
THE LEADERSHIP CONNECTION Fostering employee engagement through leadership BY ROGER LAUZON
Employee engagement is an emotional connection to the work people do and a belief in the goals, purpose and mission of that work. What’s most powerful and lasting for employees is the feeling of pride, enjoyment, self-fulfillment and feeling supported. A workplace that can successfully inspire purpose and pride in their employees through daily practices and corporate culture will see positive, sustainable results.
34 | Fall 2015
employeeengagement
W E L I V E I N A N e v e r- c h a n g i n g env iron ment where retention, resources, goal-directed action and recognition are the keys to maximizing result s. Employee eng a g ement studies and surveys consistently place management and leadership credibility as a crucial factor in this connection. According to the Gallup organization, “employee engagement is a necessary strategy for companies that want to succeed in the marketplace.” Think of an energized and engaged team and there is a strong likelihood a leader is at t he forefront who understands their employees’ needs, coaches for success, sets clear goals, empowers others by providing open and honest feedback, makes others feel valued and recognizes individual strengths. I a m pr ou d t o s h a r e C a e s a r s Windsor’s organizational strategy that focuses on developing and supporting competent and committed leaders, to foster employee engagement within areas of their control, and measure the successes of our investment. ‘DO I LEAD BY EXAMPLE? AM I A LEADER THAT PEOPLE CHOOSE TO FOLLOW?’
The approach with our leaders began with a personal question: “How do you spark action in others so they commit their full energy toward the creation of value and success of the business?” A leader must “walk the talk,” asking themselves: 1. How do I show up to work every day?” 2. “What type of leader do I want to be?” 3. A s a leader “Do I underst a nd where each of my team members are at this time in their personal/ professional life?” IT’S AS SIMPLE AS GGR — GET ME, GUIDE ME, ROOT FOR ME!
Understanding that leaders play a key role in harnessing the energy of their team, our vision focused on a corporate branded leadership program which fosters leader and employee engagement utilizing the GGR principles – Get Me, Guide Me, Root For Me. The
i nve st ment a nd com m it ment t o empower our leaders focused on building relationships and personalizing career development and goals with their teams while linking relevant, current business strategies. We wanted to create an experience that was a personal, experiential journey of reflection and to task leaders to truthfully confront their style, tendencies, behavior and quality of relationships with their teams. We understood that it was a huge endeavour to first introduce GGR then engrain the principles within our leadership culture to foster sustainable engagement. GET ME: RESPECT ME, UNDERSTAND ME AND RECOGNIZE MY CHALLENGES
GGR helps leaders make those personal connections with their employees to motivate them to perform at their best. Get Me, the first principle of GGR, set the course for each leader to recognize team members’ personal and practical needs and the importance of responding to those needs as a leader who ‘sparks actions in others’. Behaviours like open body language, supportive tone, active listening and a commitment to demonstrate sensitivity to anxieties and empathize by acknowledging feelings and concerns were essential in this quest for enhanced interaction and results. One very interesting fact posttraining is that many leaders found it challenging to admit their own mistakes or shortcomings. It is important to express such vulnerability at given times to build rapport, trust and respect with team members. Get Me helped leaders put themselves in their employees shoes, realizing employees would feel “if you respect me, understand me (not where I was at three years ago but today) and recognize my challenges, I will then think about following you!” Brilliant, but this was only the first step. Guide Me: Provide me with clear feedback and protect me along the way! The second GGR principle is Guide Me. This was an opportunity for our leaders to understand the organization’s direction and be empowered to use their best capabilities and judgments in the moment. Specif ically, the role of leadership shifted to shaping
the understanding, development, and learning of team members to communicate for success. Using this principle positions a leader to become a coach and as many recent studies indicate, an effective leader is also an effective coach. Through simulation and role playing, some of the behaviors emphasized were: 1. Authentic clear communication 2. L evera g i n g employee’s u n ique strengths 3. Sharing related ex periences and personal stories 4. Modelling a passion for results and, 5. H a v i n g p o sit i ve ener g y w h i le conveying an upbeat and optimistic a t t it u d e. Gu i d e M e pr o m o t e s mutual interests and not positioned as a “one-way street” relationship. ROOT FOR ME: CHALLENGE ME, COMMIT TO MY SUCCESS AND BE MY BIGGEST FAN!
The third component to assist our leaders w it h foster ing employee engagement has to do with… you guessed right, recognition. People crave positive feedback and acknowledgement for extra effort. There is the proud glow that comes from recognition, appreciated and celebrated. The focus within our leadership core is to practice applying and expressing confidence with their teams and team members by recognizing specific accomplishments and strengths. COMPANY PROGRAMS TO SUPPORT LEADERSHIP COMMITMENT
Investment in leadership development with our 550 plus leaders began in late 2013. Since that time a second level investment focuses on coaching a nd com mu n i c a t i o n f o r p e a k performance while using GGR. Over 100 training sessions totaling more than 11,000 hours, speaks highly of the company’s commitment to our leadership group and quest to build an even greater engaged workplace. As part of the roll out of GGR, we included a review our organizations’ e n g a g e m e nt p r a c t i c e s a n d h o w t h e y a l i g n e d w it h G G R . Up o n careful review, we redeveloped and Canadian Gaming Business | 35
employeeengagement
My Supervisor:
2012 (Before program)
2013
2014
Takes a sincere interest in my well-being
4.09%
4.17%
4.29%
Has an upbeat and positive attitude
4.14%
4.23%
4.33%
Seems interested in my opinions
3.92%
4.07%
4.21%
rebranded our recognition program, st rateg ica lly na ming it Root For Me. Timing was essential as this recognition program modelled the company values and supported GGR. The key revealing fact that GGR was born and thriving was evident in 2014. Over 18,000 Root For Me recognition cards were distributed from employee to employee based on acts of going above and beyond that emulated the company values. This is in comparison to 3,500 distributed in 2013 as part as the past recognition program and before GGR and the leader investment began. A companywide incentive program was created giving all our leaders a small reward arsenal to present to a tea m member when rooting fo r t h em . T h e s e i n c ent i ve s a r e replenished quarterly, ranging from values of $2 to $30 and ranged from a gift card, apparel, sport and leisure to community activities. Feedback from both leaders and employees participating in chat sessions, focus groups and sur veys has been ver y positive and service composites and customer verbatim provide data and details of how many of our employees have been inspired to go above and beyond the call of duty.
spends valuable time working front line with various staff from different departments spanning different shifts. This has built a solid foundation structured around involvement that has captivated feelings of support, empathy empowerment and esteem for both the senior team and front-line staff. In October of this year, a reverse program will be launched called “Walk With Us” where employees will work with the Executive team to gain a greater perspective and understanding o f t h e bu si n e s s . O t h er a l i g n e d programs that are in place to highlight and foster employee engagement, celebrate GGR and build relationships include Town Hall meetings with the President, employee-of-the-month celebrations as well as an Employeeof-the-Year Gala that brings with it an aura of glamour and glitz. We are an organization that also takes great pride in our partnerships w ithin our local communit y and our employees have led the charge. In 2014, we introduced an employee volunteer program called HERO – Helping Employees Reach Out. In the first year, employees volunteered close to 4,500 hours and fundraised over $295,0 0 0 in support of local community charities.
WALKING AND WORKING TOGETHER
MEASURING LEADERSHIP ENGAGEMENT
Since 2013, it has been full steam ahead to foster engagement through leadership by way of many different platforms. For example, each member of our Executive team participates in a program called “Walk with Me” and 36 | Fall 2015
You’ve read about what we have adopted, created and supported to help our leaders foster employee engagement but still don’t know def initively if it has changed anything within our eng agement culture. To f ind the
answer, let’s look at our most recent a nnual employee opinion sur vey where such eng agement not ables have increased from the previous year company-wide: • Three-per-cent increase in highly engaged employees • Five-per-cent increase in satisfied employees. F r o m a l e a d e r- t o - e m pl o y e e perspective, the annual Super visor Feedback Survey (SFS) completed by direct reports has shown significant improvements within the following engagement categories: We make decisions every minute on how we choose to engage with our fellow human beings. It is no d i f fer ent on how s om e one i n a leadership position decides on how they will lead. Does your workplace e n c o u r a g e l e a d e r- t o - e m p l o y e e engagement? It's a powerful factor in business success. Get, guide and rooting for one-a nother elevates engagement. Engaged employees are more productive, customer-focused, and profit-generating and employers are more likely to retain them. Roger Lauzon is the Manager of Organizational Development and has been a member of the talented team at Caesars Windsor since 1995. He has responsibility for area s of H R in cluding Int e r n al Communications, Employee Engagement and Training and Development. Roger has held past positions in Gaming Operations and Corporate Communications and serves on numerous committees in the organization
gaminginnovation
Inspired Innovation subhead
From classically inspired slots to LCD video walls, here’s a look at what’s new from gaming industry suppliers KONAMI GAMING, INC.
K on a m i Ga m ing, I nc. is set to debut several high-prof ile product announcements this fall, including premium video slot s ba sed on the cla ssic Frogger™ video game, neverbefore -seen DU NGEONS & DR AG ONS g a mes, a nd S Y N K R O S™ u p d a t e s s u c h a s S Y N K ROS Prog ressive Management™. The upcoming landmark debut of Frogger-themed video slots signif ies Konami’s latest homeg row n I P relea se from Konami Digital Entertainment to the casino gaming industry. A s one of t he world ’s mo st recognizable video games for more than 30 years, Frogger will now allow casino players t o ex per ience t hei r f avor it e Frogger features with a fantastic real-money spin. The world’s first Frogger slot machines will be unveiled at G2E on Konami’s tall-top Podium Monument™ cabinet. Konami’s popular DUNGEONS & DR AGONS v ideo slot s w ill t a lly a tot a l o f si x d i f fer ent t hem e s fo r ca sino players to enjoy w ith Konami’s newest releases. To ex pand upon the series debut themes, Konami’s newest titles include dungeon maze bonuses, 38 | Fall 2015
monster battles, and a full medieval merchant city to ex plore. Each game offers new surprises and artistic creativity to captivate and retain core slot players and fantasy fans alike. Every year, Konami’s SYNKROS™ casino management system brings more competitive new tools and features to give casinos a unique market edge. The recent release of SYNKiosk™ triggered wide industry acclaim as operators saw the potential for SY NK ROS to launch integrated loyalty promotions seamlessly across full-screen video slots, mobile devices, and kiosk stations. Konami’s newest systems innovation is SY NK ROS Prog ressive Management (SPM), a single inter face within SYNKROS for defining, configuring, launching, and maintaining system-controlled progressive games across any slot machines with Synk Box™ hardware. SPM is integrated into SYNKROS and provides multiple conf ig uration options spanning standard pay table progressives, myster y triggered progressives, carded mystery triggered progressives, and multi-game/single game cabinet specif ications. In addition, SPM works in conjunction with S Y NK iosk-mobile™ to provide customers with real-time information on the casino’s ow ned prog ressive jack pot s — such a s t he c u r rent progressive values and the amount of time since they last hit—all via smartphone, so players can get the latest updates on their favorite jackpots from anywhere. For more information visit www.gaming.konami.com. CARMANAH SIGNS, INC.
As one of the largest casinos in Canada, Caesars Windsor Casino exudes the Caesars worldwide brand from its 10 0,0 0 0 -square-foot casino at the Windsor-Detroit border in Ontario, Canada. In addition to having a stunning hotel and casino property, the casino-resort features world-renow ned rest aurants and bars and routinely hosts concerts and comedy shows, starring popular rock stars and celebrities. Caesars Windsor was
gaminginnovation
Vegas attracts and informs casino players by seamlessly presenting still images, slideshow and video. Visit www. ca r ma na hsig ns.com for more in for mat ion on their products and services. IGT
looking for a unique way to communicate their brand, information about new games, the resort’s restaurant and attractions, and showcase past casino winners. Carmanah Signs, along with sister company enVu, created a v isually stunning 2 x 2 interactive v ideo wall using LCD screens and ActiVia software, which engages casino patrons by bridging the gap between the physical and digital world. Having captured the patron’s attention, the gestural interactive experience allows users to passively interact with brand messaging as they pass the displays, or more actively engage and explore Caesar Windsor’s latest marketing and offerings in an immersive beach environment. When in “idle” mode, a tropical scene with dynamic elements slowly scrolls from side to side on the wall. W hen a patron enters the “active” area, the scene brightens and the experience responds to the person’s movement. As the beach scene progresses, new areas of the beach are revealed, coming into and out of view as the patron moves into and out of the active area, creating a larger augmented experience. The experience was installed for a three-month term and received positive feedback from customers. John Van Den Kie Boom, Director of Slot Operations for Caesars Windsor says: “The feedback from customers has been good. It’s interesting to watch people realize that they’re actually interacting with the screen.” Carmanah Sig ns is w idely k now n in the casino industr y for providing LED and LCD Table Signs, including the popular Vegas LCD Table Limit sign. The
IGT has furthered the company’s leadership in crossplatform content creation and deployment with the launch of In Bloom® video slots. First introduced at four Société des Casinos Du Quebec (SCQ) casinos, The Casino de Montréal, The Casino de Charlevoix, The Casino du LucLeamy, and The Casino de Mont-Tremblant, In Bloom is IGT’s f irst game theme to launch simultaneously in a casino and online in North America. “Launching IGT’s In Bloom for land-based and online play establishes a model in North America for simultaneous content deployment across different platforms,” said David Flinn, IGT Regional Vice President, Canada. “This also enhances SCQ’s marketing capabilities to players in casinos and online.” In Bloom video slot blossoms with fun features and introduces IGT’s exclusive Symbol Burst™ game family, which increases the value of some f lower symbols by up to five times, and elevates player excitement when a total of 15 possible f lower or number symbols appear on a single payline. Bursting with color, the three-reel, five-payline game theme features the Free Games Bonus, enabling players to choose their volatility when they select one of four f lower symbols. To maximize winnings in the Free Games Bonus round, a paytable displays the four f lower
Canadian Gaming Business | 39
gaminginnovation
symbols and allows the player to select between 5, 8, 10 or 12 free games. For big-win potential, the Bonus Bump bonus round is an interactive feature that allows players to customize their ex perience by selecting naturethemed sy mbols on the Multi-Layer Display (MLD ®) for the chance to win additional credit awards. In Bloom joins IGT’s library of other w idely played g a me themes such a s Cleopatra ®, R ich Girl ®, and Golden Goddess ®. For more information on In Boom and other IGT games, visit www. igt.com. NOVOMATIC AMERICAS
Mak ing its G2 E debut in L as Veg as w ill be the Dominator Cur ve ® from NOVOM AT IC a nd NOVOM AT IC Americas. This stunning new cabinet is a next-step innovation from one of Europe’s leading gaming manufacturers and also an exciting new release for the rapidly expanding, Illinois-based, NOVOMATIC Americas. Since celebrating its world premiere at ICE Totally Gaming 2015, the evolution of the hugely successful Dominator® has successfully taken up its twin brother’s successful concept and enhanced its attractiveness through its own unique features. The Dominator Curve features all the ergonomic and design elements of the original Dominator ®, plus the advantages of its own unique feature – a vertical 40 -inch full HD cur ved touchscreen that has been specif ically designed for a seamless gaming f low and entirely new game concepts. The curved screen dic t ates t he player posit ion, directly at the focal point of his view and thus guarantees maximum impact g a ming w ith sophisticated g raphics 40 | Fall 2015
and sound. Further cabinet features are stirring LED illumination and game-dependent colour effects that create maximum attraction on any casino f loor, along with the TouchDeck player interface (various button pa nel layout s also available) a nd a n opt ion a l i ndep endent 18 . 5” mu lt ipurpose TFT topper. The DOMINATOR ® Curve has its own, four level, Progressive Standalone Jackpot and its own range of exclusively designed NOVOMATIC games, making this the perfect ‘plug-in-and-play’ slot solution for any gaming floor. For the operator, the DOMINATOR® Cur ve feat ures a ra f t of impor t a nt technical advantages. For example, the cabinet’s main door opens upwards on gas springs, providing safe and easy access for maintenance, plus optimum space between machines. The DOMINATOR® Curve is TITO ready and features both multi-denomination and multi-language capability. At 640 mm wide (casino base 750 mm) and with a total depth of only 637 mm including base stand, it maximizes valuable floor space. W ith this range of player specif ic and technical advantages the D OM I NATOR ® Cu r ve is rea dy t o build on the success of the orig inal D o m i n a t o r ®, it s el f w it h a r e c o r d o f s u c c e s s e v i d e n c e d b y it s m a n y installations around the world. This yea r ’s G2 E v isit or s c a n ex p er ience NOVOM ATIC A MERICAS’ enticing product line at Booth 2656, September 29-October 1, 2015, at the Sands Expo and Convention Center in Las Vegas. Fo r m o r e i n fo r m a t i o n v i sit w w w. novomaticamericas.com.
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finance
CYBER SECURITY Stacking the odds against cyber crime
BY KEVVIE FOWLER AND PAUL HANLEY
The online world is full of opportunity for gaming operators in your plan before a real cyber emergency occurs. INVEST IN CENTRALIZED RESOURCES — Ensure and organizations. YET AS MANY RACE to stake their claim in the digital space, the risks of cyber threats are becoming more and more present. From data theft to fraud, from system corruptions to ransom-driven threats, there is no shortage of cyber attacks facing today's gaming stakeholders – player information and intellectual data are as good as gold to online thieves. And as the industry continues to modernize, it is connecting to the Internet with technologies that were developed years ago when cyber security was less of a risk and the threat environment was far less hostile. Failing to protect your online assets cannot only erode player and customer confidence, but also may place your organization outside of data management regulations. In today’s gaming world, it is critical to def ine a defensible position — determining the present state of your cyber security program as well as identifying a target state that you feel would safeguard your assets and brand in the event of an attack. This may help reduce or protect against fines or sanctions from regulators, and avoid negative public perceptions of negligence. To that end, many organizations focus heavily on performing a cyber security maturity assessment to determine the assets and risks their company faces; as well as the human, procedural and technological controls in place to protect them. While this is an important step to determining one's present state of security, it also pays to proactively focus on the strengths of your incident response 42 | Fall 2015
and forensics program – your last line of defence against cyber criminals. Reviewing a response program should involve more than simply analyzing a documented response plan. The following strategies may be used to enhance your program's ability to detect, contain and respond to an attack. RECRUIT A RESPONSE TEAM — Having an
incident response team at the ready will help ensure cyber breaches are detected and managed efficiently and effectively. These can include representativess from different departments, including IT professionals, finance professionals and department leaders; it's important every member is welltrained in cyber defense and understands their individual responsibilities. EMPOWER YOUR PEOPLE — Management must support the incident response team and its mission during an incident, and encourage other departments to do the same. It helps to look across the organization and task a stakeholder from each appropriate department that is assigned to assist responders during an attack. CUSTOMIZE YOUR GAME PLAN — Attacks are often custom-designed for their target, so work with your IT department to create an incident response strategy that reflects your organization's specific systems, structure and cyber threat profile. REHEARSE YOUR RESPONSE — One of the best ways to determine if your incident response program will work is to engage the entire organization in regular test runs. These will identify potential gaps and oversights
you are investing in up-to-date tools to keep pace with online criminals. Then, establish a centralized communications dashboard – a hub where incident response team members can both access these cyber security resources and provide updates to your organization concerning current threats and ongoing investigations. This hub can also be used by staff to report signalling threats such as purged logs, failed authentications and interactive log-ons. PREPARE THE FRONTLINE — Incident response teams won't always be the first at the scene. Determine where cyber threats are most likely to originate and train staff in those positions to capture a memory image of the system, and document their activities. Other wise, knee-jerk reactions (for example, running anti-virus software or deleting files) may make it more difficult to fully resolve an issue. ENGAGE PLAYERS — Provide education to players to help them identity and stop cyber scams at their source. This will position your organization as an authority in online security and help make sure threats are brought to your incident response team's attention instead of dealt with (or ignored) by those who aren't trained to handle them properly. Kevvie Fowler, KPMG Partner, is a Cyber Security & National Cyber Forensics Leader. Paul Hanley, KPMG Partner, is a National Cyber Security Services Leader. To learn more about cyber security and how KPMG can support your organization, visit www.kpmg.ca/cybersecurity or reach out to K evvie Fowler (kevviefowler@ kpmg.ca | 416.777.3742) or Paul Hanley (pwhanley@kpmg.ca | 416.777.8501).
Welcome to Ottawa and Lac-Leamy
Bienvenue à l’Ottawa et Lac-Leamy
“Where the Canadian Gaming Industry Meets”
June 13-15, 2016
Ottawa Convention Centre • Ottawa, ON Casino du Lac-Leamy • Gatineau, QC
Golf Tournament: A huge number of participants enjoyed a beautiful day of golf at the Essex Golf and Country Club. The day included 18 holes of golf with power cart, breakfast, snacks and a barbecue with awards after the round. Congratulations to the winning foursome of Steve Chase, John Gallinger, Mike Ross and Steve Stone.
Opening Reception: Delegates enjoyed cocktails and appetizers as they mixed and mingled with old friends and new acquaintances on the Riverside Drive Patio of Caesars Windsor. Immediately following the Opening Reception, the fun continued into the evening at local favourite nightspot, the Bull and Barrel.
Plenary and Education Sessions: We had two fantastic Plenary Sessions at the Summit: The Canadian Gaming Industry: A Product Market Match — Delivering for the Consumer session on Wednesday, June 17 and the Connecting the Dots session featuring keynote speaker Richard Peddie, former President and CEO of Maple Leaf Sports and Entertainment, on Thursday, June 18. The educational program for the Summit was developed through extensive industry consultation to offer sessions covering a wide array of gaming topics, including Legal & Regulatory, Charitable Gaming, iGaming, Security & Surveillance, Marketing & Communications, Corporate Social Responsibility, Finance & Markets, Food & Beverage, Human Resources and much more.
44 | Fall 2015
Delegate Receptions and Networking Events: After a busy day of visiting the Summit’s Exhibition and attending education sessions and keynote presentations, the delegate and exhibitor receptions provided a chance to unwind and network.
2015 SUMMIT HIGHLIGHTS The Canadian Gaming Summit, Canada’s premier annual conference and exhibition for gaming professionals, took place at beautiful Caesars Windsor on June 16-18, 2015, delivering face-to-face interaction between attendees from all gaming sectors, disciplines and regions within Canada and beyond. The Summit featured a top-notch educational program, an impressive exhibition floor with a wide array of products and suppliers and a multitude of gala receptions and networking events attended by a “who’s who” of the Canadian gaming industry. Here are just a few of the reason delegates travelled to Windsor, Ontario — in addition to being able to enjoy the outstanding amenities and hospitality of our host venue Caesars Windsor: • Its Unique Position – The Summit is Canada’s premier and only annual
conference and exhibition for gaming professionals. • Networking – The Summit delivers face-to-face interaction between attending
delegates who represent all gaming sectors in Canada and beyond. • Education – The Summit’s Education Program Committee developed an
amazing schedule for 2015. We showcased two outstanding Plenaries, the Charitable Gaming Conference, the inaugural Food and Beverage Conference and an outstanding array of educational tracks. • New Products and Services – The Summit trade show floor, comprised of
major gaming product and service suppliers, displayed new and innovative offerings, many of which were launched at the show. • Exchange of information – The Summit was able to provide an opportunity for
the gaming professionals to engage with one another and exchange ideas in private meetings. If you want to experience everything the Canadian Gaming Summit has to offer, be sure to mark your calendar today to join us as the Summit heads for the National Exhibition Show Floor: The Exhibition floor offered delegates the opportunity to meet one-on-one with existing and prospective suppliers. Filled with the industry's top companies and service providers, this was the industry exhibition to attend. New gaming products and services were launched and showcased and multiple networking opportunities were also available.
Annual Industry Awards Reception: Attendees enjoyed a wonderful evening of awards and entertainment at the Annual Canadian Gaming Industry Awards Reception. Since its inception 19 years ago, this prestigious event has honoured achievements in industry leadership.
First Nations Awards: The Annual First Nations Canadian Gaming Awards took place as part of the Summit’s Awards Reception. These awards recognize the contributions of First Nations casinos to the First Nations and neighbouring communities. The awards also honour the outstanding accomplishments and contributions of Aboriginal people employed by a First Nations casino within Canada and the continued development and improvements within their operations.
We look forward to welcoming you to the 20th Annual Canadian Gaming Summit on June 13-15, 2016 in Ottawa/Lac-Leamy — See you there!
For more details visit www.CanadianGamingSummit.com
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