European Giant Spreads Its Wings
As he arrives at the Novomatic/Austrian Gaming Industries (AGI) booth at the SAGSE trade show in Buenos Aires, it’s already been a long month for Jens Halle.
“We were just in Madrid at the Spanish trade show,” he says, “so I can barely keep track of the countries”
But that’s the price you pay when your company is one of the hottest in the gaming industry and you want to capitalize on the popularity of your products. Whether it’s the company’s Gaminator, the popular multi-player games or the exclusive Streamline cabinet, AGI seems to have hit the sweet spot when it comes to gaming trends.
Halle says the company is flying high because it is so dependent upon its R&D department. In fact, AGI was formed by combining the R&D department with the various production divisions, the international distribution organizations and the marketing department of the former Novomatic Industries GmbH.
“AGI has its roots at the heart of Europe but can now be considered a truly global player,” he says. “From street operations to the highest status casino operations we draw experience and knowledge, refine our product range through a significant (more than 10 percent of turnover) re-investment in research and development and use commercial knowledge and insight to bring those products successfully to the market.”
That commercial knowledge comes from the company’s role as an operator of casinos and slot parlors throughout Europe. While American companies have most withdrawn from operations, Halle sees a tremendous advantage to it.
“The Novomatic Group has stated its intention to achieve a 50/50 parity between sales and operations within the next 12 months,” he explains. “The advantage to the group is in achieving the aims of the business plan drawn up by our senior management.
“In terms of AGI, the advantages are obvious. By having successful operations we can test and refine our products, we can and do observe market trends and the preferences of our guests. That knowledge is invaluable and is the stepping stone between research and development and commercial success.”
AGI uses Novomatic’s casinos as test grounds for its machines and systems.
“AGI benefits from the opportunity to test new developments in casinos and slot arcades and to launch innovations in the market only when the players' response is truly enthusiastic,” says Halle. “This minimizes the risk to casino operators who additionally benefit from the strong commitment to Excellence, the precision processing of superior materials and customization to meet specific customer requirements.”
Background & Basics
The history of Novomatic Group is replete with examples of anticipating or actually creating trends. Formed by Dr. Johann F. Graf, who is the president of the company. Today, Novomatic Group contains five subsidiaries involved in developing technology and manufacturing games for the gaming industry and operations of more than 240 casinos and slot arcades around the world, operating more than 20,000 machines. Some of the casinos in those companies are operated by still other subsidiaries, which Halle calls essential
“It is necessary,” he says, “and it is also extremely valuable. Having local capabilities on the ground means being able to respond to market demands and trends that much faster and at source. Take, for example, the recent major expansion of gaming Latvia. We have been aware of the developments and the regulation changes and through investment of people and infrastructure, we have achieved a market leading position through our efforts directly in the country.”
With headquarters and operations primarily in Europe, Halle is anxiously awaiting streamlined regulations that will allow the company to capitalize on its strengths.
“The gaming sector within the E.U. is many faceted,” he says. “The big question is ‘when will gaming legislation be harmonized within the E.U.?’ and the answer is that, as of now, no one really knows.
“Legislation is only ever definitive at the start-up of a new jurisdiction. Everywhere else the pattern of laws and the regulations that go with them are evolved over time. Naturally, that means that there are differences between individual markets.
“Novomatic has built its reputation and its successful business from a European base, particularly from success in eastern European countries. Through experience we know how to operate in all E.U. and adjacent markets and our success is based on market knowledge and having the flexibility to comply with current regulations, country by country.”
AGI has chosen to be involved in almost every facet of the European gaming market: casinos and route operations (AWP, VLT, LPM) along with networking/online technology for the gaming and leisure industry.
Games and Systems
One of the company’s most successful niches is the multi-player games. AGI was one of the first companies to perfect the automatic roulette games and players have responded to their to their expertise.
Halle says the response of the players is a result of many years of understanding the markets in which they operate.
“Experience, experience and experience!” laughs Halle. “We gather knowledge and experience and re-invest tremendously into research and development in order to meet the needs of each specific market.”
At SAGSE, AGI showcased two new slot cabinets and several additions to its gaming library.
“South America is a major expansion focus for us,” said Halle. “We are already present in South America and have exhibited in trade shows in Peru and in Chile. The demand from customers from numerous South American countries for our innovative products has been accelerating recently, and we of course will react positively to that.
“As one of the world’s most dynamic and fastest-growing gaming regions, we believe that it is completely appropriate that our world-leading products should be featured prominently at the region’s largest trade exhibition. We have chosen to mark this special occasion by launching some key product innovations at the show, and we are confident that these will be exciting for the decision-makers from across the continent who will attend SAGSE.”
AGI demonstrated new games in its Coolfire II video slot platform, along with innovative new cabinet styles, and also is using the show to introduce South America to Flex-Link, a jackpot system from Independent Gaming Pty. Ltd. in Australia that is being distributed by AGI.
“Product innovation is AGI’s strongest characteristic,” claims Halley. “Of course, timing when to bring new products to market is a skill in itself and you can expect some exciting new developments in Las Vegas at G2E. New games, new multi-games, new multi-players and much more.”
Along with great products, Halle knows that service after the sale is just as important.
“Technical support is absolutely vital and we give 100 percent maximum effort to ensuring that our customers are looked after correctly,” he says. “Through our dedicated 24-hour helpline, to technical assistance with installations and upgrades and right through to problem solving ‘on demand’ problems, we offer a technical support that is the very best the industry.”
International Outreach
In Latin America, AGI has found its highest level of success in any non-Europe venue.
“We are no strangers to the South American markets, having enjoyed considerable success already in various jurisdictions, Peru and Uruguay, for example,” says Halle. “We have announced publicly that South America is a key expansion target for us and that is one reason why we have taken a serious position within the SAGSE show for the first time. The Novomatic Group also has plans for operational expansion. We will build and open the largest casino in South America in Chile during 2008 and that will be a springboard to other significant opportunities in the region.”
As with most manufacturers (and operators), expansion into Asia is a key part of the business plan for AGI.
“Like South America, Asia is a key expansion region for AGI,” Halle says. “We already have business in Macau and other installations in the immediate future in the Philippines and South Korea. We have done our preparation work in terms of licensing, customer base and local requirements, now we are going full speed ahead throughout the region.”
The confluence of the Australian market and already established business relationships make that region another growth area.
“We have a strong strategic alliance with an Australian company, Independent Gaming PTY Ltd of Sydney, New South Wales and we see that as the route for developments ‘Down Under,’” Halle says. “Asia (where Independent Gaming is also strongly linked to us) is the key but Australia is also on the menu for the near future.”
The time-consuming process of licensing makes breaking into the U.S. market as quickly as he would like more problematic, says Halle.
“The strategy for a significant entry into the U.S. market is determined, of course, by license acquisition and product approvals,” he says. “With such a multi-faceted market that takes a huge amount of time and money. Neither of those are a difficulty but we have to take priorities in many international markets. Native American gaming is changing right now and we have plans in some of those jurisdictions. This stems from our already granted license in Colorado, and expansion will take a planned course over time.”
The goals of Novomatic and AGI will only be accomplished if Halle can continue to motivate, which is one of his talents. He plans to do just that.
“Everything that happens here is a combination of the products and the people,” he says. “Since the inception of Austrian Gaming Industries as a wholly owned subsidiary of Novomatic the company has been totally focused on the needs of the international gaming market and how to provide the best solutions.”
SIDEBAR:
Novomatic Group Goals
• Expand operational activities including casino shareholdings, the operation and management of casinos, slot machines in casinos, slot arcades, and in route installations, as well as bingos and sports betting;
• Obtain market leadership as a manufacturer and supplier of cutting-edge gaming equipment and services in Europe;
• Extend the technological lead in the area of electronic live games and gaming solutions;
• Expand activities into new controlled and regulated markets in selected jurisdictions worldwide with a clear focus on Europe;
• Continue to be a pioneer in emerging regulated markets;
• Use of multiple distribution channels to further enhance market presence;
• Expansion of core capabilities to move into new growth markets;
• Continuous development of leading-edge gaming technology and services as a partner to the international gaming industry, and
• Ongoing training and development of highly skilled employees as a basis for continuous growth and the guarantee of customer satisfaction. (Source: Novomatic Group of Companies Mission Statement)
The Novomatic production plant Komorany, Czech Republic
Members of the Novomatic Group
• Austrian Gaming Industries GmbH (AGI), the original bearer of the name Novomatic that was renamed in 1996 and is today a market leader in the realm of cutting-edge casino technology and interactive live games;
• Astra Games Ltd., which designs and manufactures amusement machines for both the U.K. and overseas markets;
• European Data Project (EDP), located in the Czech Republic; with its two large production facilities and the Paradise Casino Admiral gaming establishments EDP is a market leader in the new EU Member State both as a manufacturer and an operator;
• NSM-Löwen Entertainment GmbH, the second-largest manufacturer of slot machines, fun games and amusement devices in Germany;
• Admiral Sportwetten GmbH (ASW), which is the Austrian market leader in the realm of betting shops.
Skill Shot
FUN Technologies will reap more than $40 million from customers wagering on its internet games and tournaments this year. The bulk of the company's business comes from Americans, and one of its most important offices is located in
FUN's online games are actually distinct from traditional gambling games in fundamental ways, at least as far as most gambling laws are concerned. The games typically pit human players against other human players, rather than against a dealer or the house or a random number generator. More importantly, the outcome is largely dependent upon players' mastery of the game rather than upon chance. Checkers is a perfect example. A customer on a website operated by FUN could find an opponent to play checkers against, place a friendly wager on the game, and then collect the prize if she wins or forfeit it to the opponent if she loses.
Casual Wagers
Games of this sort are commonly referred to by individuals in the sector as "skill games" or "casual games," to reflect their important distinction from games that are based on fixed odds propositions and are therefore subject to restrictions by gambling laws. When it comes to traditional gambling games like roulette, craps and blackjack, skill is a relatively insignificant factor because players face the same sets of fixed odds propositions in every contest. Even if a player were to utilize perfect strategy in such a game, he or she would still be expected to lose to the house edge in the long run.
Gaming regulators all over the world seem willing to accept that wagering on one's own successful performance in a contest does not constitute gambling as long as the contest is a game of skill rather than chance. There is therefore a very broad array of skill games on the market. Classic games like chess, checkers, backgammon and mah jong have proven popular, so have card games like spades, free cell, speed solitaire, hearts and rummy. Other favorites include word games like Bookworm, Lingo, hangman and Scrabble. Puzzle games, simple arcade games and sports games are also standard offerings. Wagering on larger, more sophisticated video games such as Warcraft and Halo and has also carved its own small niche.
Because their games fall outside the scope of current gaming laws, skill games operators are exempt from most of the checks and oversights that are imposed on traditional gambling businesses. Skill gaming operators do not require wagering licenses or software and systems certification in most jurisdictions, nor are they required to maintain minimum prize payout levels or pay taxes on their wagering revenue.
Yet despite the seemingly sharp distinctions in legal treatment between online skill games and internet gambling, the two industries are actually very familiar bedfellows.
"A lot of people coming from the online gambling industry saw the writing on the wall with the prohibition legislation coming up in the
Fun for All
FUN Technologies, for example, was actually spun from two individuals who were former directors of CryptoLogic, which was at the time and remains today one of the world's most successful developers of internet gambling games and software systems. In 2002 Andrew Rivkin (who had served as president and CEO of CryptoLogic) and Lorne Abony founded a new company called CES Software, whose initial plan focused on the development, licensing and operation of internet sports betting exchanges. CES' big entry into the skill games market didn't come until July 2004 when it purchased SkillJam, one of the largest skill game operators at the time with more than 5 million registered users. The SkillJam business model consisted of not only operating its own network of games, but also hosting private label skill games networks for major media partners such as MSN, iWon/Excite, Disney's Go.com, iVillage and Boxerjam.
Upon its purchase of SkillJam, CES issued a statement declaring its belief "that person-to-person skill gaming and exchange betting businesses are complementary to one another, and closely aligned." The company then proceeded to sign juggernaut online media companies to the SkillJam platform throughout the rest of 2004, including America Online and GSN Network for Games. It also entered deals with online gambling operators, including
By 2005 the beginning of a trend toward consolidation and corporitization for online gambling companies was already underway. The industry had matured to a point that it was no longer practical to consider internet gambling businesses as "fly-by-night" companies without accountability. Investors were eager to swipe up shares as companies floated on European markets, and the cash injections meant more mergers and acquisitions for companies in the sector.
Higher levels of cash on hand for businesses in the quickly evolving industry led operators began striving to become "one-stop-shops" for online gaming entertainment. It was no longer sufficient for an operator to have just a good casino or a good sportsbook; in order to stay competitive for the long-haul it was becoming necessary to have both a casino and sportsbook, in addition to poker and whatever other complimentary offerings might happen to be the next big rage.
Separate but Equal
FUN certainly wasn't the only company that believed skill games were complimentary to online gambling offerings. New companies have emerged, specializing solely in the development of skill games systems and software, and the online gambling industry provides a great source of new clients for the fledgling companies. Officials with skill games companies now flock to conferences and trade show events for the internet gambling industry, and conference agendas have begun featuring discussions about operating successful skill games operations. Clarion Gaming has even begun producing trade shows devoted to skill games.
There are some pretty obvious problems with the legal classification of skill games, however.
"In talking about the legality of skill games, you assume that there is a bright line between gambling and non-gambling activities, which is not always the case," said internet gambling lawyer Martin Owens. "Poker is a perfect example."
Indeed, it is difficult to argue that skill does not play a very important role in the outcome of poker events. It should be easy to see why an expert like Daniel Negreanu would easily dismantle a newbie. It should also be easy to see how the newbie could improve his chances of victory significantly through practice. Sure the distribution of cards is obviously subject to chance, but the inevitable outcome depends upon what the players choose to do with those cards.
Earlier this year U.S. Rep. Robert Wexler (D-Florida) introduced a bill that would classify poker (as well as mah jong and backgammon) as a game of skill that is exempt from last year's Unlawful Internet Gambling Enforcement Act. The legislation is being pushed hard by the Poker Players Alliance, a grassroots organization of American poker players with more than 30,000 members. Were it to pass, the legislation would permit operators of internet poker to offer their games to American customers.
Josh Rogin, a spokesman for Wexler, has stated that the bill "allows Americans to play poker online as they should have every right to do," based on its nature as a game "you win or lose based on your ability." The odds on successful outcome for the bill appear slim however, at least in the near term.
All in all, when looking with large scope, it appears that skill games in their standard sense—that is without grouping poker as one—is not something that is going to lead to busting revenue figures or robust amounts of traffic for online gambling companies, however. The stakes for most skill games wagers is only a dollar or two, and the primary audience is typically women, not the sports bettors and poker players who make up the bulk of a company's customer base.
"I don't think skill games are ever going to be a major revenue channel," said Balestra "but gambling sites are still definitely trying to offer them. It's certainly not a passing fad, but it's really just another product they're going to add."
FUN does not even do business with internet gambling companies anymore, a practice it began implementing in 2005. The company so adamantly wishes to distance itself from online gambling that it refused to be interviewed for this article on those very grounds. And a survey of the internet gambling world's landscape today reveals only a meager presence for skill games. Today, true skill gaming platforms with a wide variety of games on offer are typically found only on the websites of longstanding land-based juggernauts such as Ladbrokes, William Hill and Paddy Power.
"I think the skill games companies are going to make most of their revenue from entertainment giants like Virgin, Yahoo and MSN," said Balestra. "Somebody who goes to Ladbrokes wants to place a bet, they don't want to play yahtzee."
Video Games Meet Slot Machines
The evolution of the traditional arcade coin-operated video game, and the casino style slot machine industries are at a new point in history. Slot machine manufacturers have been seeking to incorporate new and exciting themes, game formats, and graphics that attract and keep players, and the traditional arcade coin-operated video gaming industry are facing similar pressures. In addition, the most recent technological advances in the types of slot machines and systems begin developed are allowing for more and different ways to bridge new technological offerings. While at the same time the electronic game device composition of the gaming floor continues to grow and drive revenue to the casinos bottom-line. Therefore, a question looms as to whether it is likely that we will see an increased convergence of the two industries.
The history of Bally Technologies Inc. provides a very interesting look into the evolution of a game development company. It is commonly known that Bally’s initial formation was the result of the creation of a pinball game—Ballyhoo. In addition, most people were touched by Bally’s former subsidiary Midway Manufacturing which developed such games as Space Invaders and PacMan. However, what is less known is that Bally’s involvement with the traditional arcade gaming industry has continued to evolve as the company has changed sharp, size, focus and its name. Although Bally Technologies is currently focused on a product line that includes slot machines, cash monitoring, table management, marketing, promotional and bonusing capabilities that enable its casino operators to provide their customers with a unique gaming experience, the company’s involvement with the traditional arcade industry has existed throughout its history.
Although Konami Corporation’s history as being part of the casino slot machine industry is far shorter than the 75 year history of Bally Technologies, its emergence onto the scene is one of note. Konami Corporation is a Japanese game development company that entered the traditional slot machine industry in the late 1990s. Konami’s beginnings date back to the early 1970s when the company was predominately involved in the rental and repair of music jukeboxes. Although the company is known for the software game titles it created for Nintendo in the 1980s—Skate or Die, Contra, Metal Gear and Castlevania. Konami Corporation’s success in its software development and gaming products allowed it to dive full bore into the slot machine industry. An exercise that most smaller companies can not do because of the enormous barriers to entry—licensing costs, technological understanding, etc.
Pure Slots
The largest and most successful slot machine company in the
The advances in game content, server-based technology and game function that have been brought by companies like Aristocrat, Atronic, Mikohn, Shuffle Master, WMS Gaming and Cyberview cannot be overlooked either. In addition because of the key role that regulators play in the types of games that reach the casino floors in the
The largest difference between arcade games and slot machines is the presence of skill in the function of the game and how the skill of a player can impact the outcome of the gaming experience. Additionally the key variables of consideration and prize are inherent in a slot machine experience, and largely restricted or prohibited in arcade gaming. Although the laws governing amusement arcade gaming vary by jurisdiction they are generally designed to prohibit and/or limit wagering on an outcome of the game. While the goal of arcade gaming is to provide an experience from the playing of the game itself, slot machine gaming is about giving its players a fair wagering experience where the outcome has historically been left up to chance.
Points or Units?
When looking at the convergence of the arcade experience with the tradition casino style slot machine a recent game title has caught a lot of attention, Bally Technologies Inc.’s Pong. The 1970’s Atari game was first shown at a casino trade show a couple years ago. However, following its approval by
The difference that the Pong game brings to the current casino floor is that the bonus round of the game includes a 45-second game of the popular Pong game where the player moves the paddles and tries to keep a ball in play. As with the original arcade style game the pace of the Pong volleys increase the longer the Pong is kept in play.
Chris Adams, the lab manager for the
“
Adams stated that the rules in Michigan “do not specifically establish where the boundaries are for the types of gambling games that will be approved; rather we look at each submission to the Michigan laboratory individually and try to assure the integrity of gaming.”
As it relates to the current game submissions, Adams observed that “
Adam said that
“As customers demand new gaming experiences,
Adam’s states that “As it relates to the future of game development it appears that manufacturers are incorporating improved graphics, and making their offerings more interactive. Therefore, at this point in time that games we are reviewing and testing are not a dramatic migration of the arcade gaming experience with the wagering experience, but we do expect to see an increase number of submissions with these elements.”
Memories, Not Skill
The convergence of the arcade experience is not solely about the migration of skill into the traditional slot wagering experience; rather developing games with a common gaming experience is also growing in popularity. IGT has developed several games that have a communal gaming component to their function and play. IGT Vice President of Marketing Ed Rogich, stated “We are seeing an increased demand for communal gaming themed games, such as “Wheel of Fortune Super Spin,” which allows nine players to participate in the same bonus round. The interaction of players in the bonus round creates even more excitement for the player, and IGT will continue to find ways to bring added entertainment value to its future slot offerings.”
Rogich noted that because of the privileged nature of the casino gaming industry and the fact that suppliers must be licensed to sell their games “IGT must walk a very fine line with its product innovations and therefore although IGT seeks to press the limits with cutting edge technology we only go as far as a the regulations allow us.”
“IGT recently partnered with Sega Gaming in the creation of Three Kingdom Wars,” he says. “This partnership illustrates that there are ways the traditional arcade gaming industry and the slot machine gaming industry can partner so as to maximize the customers experience. IGT will continue to look for opportunities where the bridging of the strengths of the traditional arcade industry can benefit the slot machine industry.”
Skill or Gambling?
At the same time as the casino gaming industry finds ways to improve its offerings with partnerships arcade gaming providers, the arcade industry is finding out what makes wagering experience different and how it is regulated. In 2006 the popular bar and restaurant arcade game Golden Tee was the subject of a court case in
In the case of Mcentee, et al v Incredible Technologies, Inc., an unpublished opinion of the Michigan Court of Appeals, the court was called upon to review the Golden Tee arcade games, and, more specifically, the “Hole-n-Win” contest that was associated with the Golden Tee games. A player who paid to participate in the Golden Tee “Hole-n-Win” contest received a specific sum of money for achieving a hole-in-one on a designated hole.
The plaintiffs in the instant matter sued Incredible Technologies to recover money lost while playing the Golden Tee “Hole-n-Win” contest pursuant to a provision in Michigan’s Penal Code which expressly provides a civil remedy for a plaintiff who loses money to a defendant through playing or betting on cards, dice, or by any other device in the nature of such playing or betting. In rejecting the plaintiff’s position, however, the court found that the Golden Tee games which incorporated the “Hole-n-Win” contest were actually “gambling games” which were subject to the exclusive jurisdiction of the Michigan Gaming Control Board.
Although each state’s laws on what is a “gambling game” are different, the above case illustrates how arcade game developers who seek to incorporate prize, chance and consideration risk creating a gambling game.
Although gaming manufacturers are incorporating arcade like features into their games, the unique rules that govern casino gaming require all new uses of game technology to be tested to ensure compliance with the laws. In addition because of the privileged licenses that suppliers are required to hold in order to sell these games, any convergence of the arcade gaming experience with the slot machine industry will need to evolve and thus it is very unlikely there will be dramatic revolution in the industry. Rather, what is a sure bet is gaming manufacturers and software providers will continue to find new ways to bring an improved gaming experience with sounds, imagines, game themes, functions and prize matrixes and the customers will be the final judge.
FLOOR of the Future part I
Consider the following scenarios:
- An elderly couple have come to the casino to play slots—he a 25-cent, play-to-win player who likes to play particular machine; she a 5-cent, play-to-win-to-play player who likes the diversity of playing a variety of machines during one session. Since they cannot play together, they meet for an early dinner to have some time with each other before they leave.
- A player playing a slot machine for over an hour has to leave to join his friends for lunch. He is peeved because he is concerned that someone else will win “his jackpot” while he is gone, not to mention whether the machine will be available when he returns.
- A local group is appearing in the lounge tonight and a group of friends want to play slots nearby but because everyone has their own denomination preference and favorite game. Only a couple of them find the game they want to play near the lounge. The others must go elsewhere.
- The vice president of slots has just attended a meeting where the CEO asked all of his executives to look for ways to improve the utilization of all of their facilities. Something to do with “asset turnover,” he thought he said. Besides knowing his overall slot floor physical utilization is below 40 percent, the vice president sees areas like the pool areas and cabanas, the late-night clubs, meeting and convention pre-function areas, and any number of other places where there seem to be a lot of visitors with a lot of money who are not playing slot machines. The vice president cannot figure out how to take advantage of these situations.
- The marketing “thought leaders” know the X, Y and Z generations are moving into the sweet spot of slot demographics, but know they do not have any games that seem to cater to their X-Box/PlayStation heritage.
- In Macau, a player from Guangzhou is superstitious and cannot find games with symbols suited to his sense of luck, and when he finally does, it is not in a location within the casino that seems to have good feng shui.
- An architect charged with designing a new $5 billion project sees lots of new ideas being applied to gaming-centric projects, but not in the gaming area itself. She wonders how she can design a casino that will niche or beat the competition. At the same time, her self-made, rich, highly opinionated boss keeps raising concerns about whether high or low ceilings, light or dark casinos, single-level or multi-level casinos work best.
Sever-Based Solutions - Forces are massing on the horizon that will address all these situations—that both independently and collectively will shape the design of casinos in the future, and the casino experiences produced within. Among them, and arguably the one with the greatest potential to be a change-maker, is the introduction of central server-based systems to drive the presentation and play of slot machines and derivatives. In this regard, manufacturers working on central server-based systems say their way of crafting a slot floor can solve each of the opening issues… and more.
Despite this prospect, a rather unscientific polling of owners, operators, architects and designers reveals that few, if any, have given much thought to how the arrival of central server-based systems will change the operation and marketing of a casino and, by extension, the design. This article is our crystal ball and peek into a hypothetical future of what a central server-based casino environment may look like five to 10 years from now.
Given the number of articles in this and other publications on central server-based systems, we will assume that the reader knows the basics about this new technology. Recognizing, however, that the myriad elements that make up central server-based systems could take a number of different forms, for the purposes of this article, we are assuming the following:
- There will be a standard protocol that will allow one vendor’s game to operate on any and all vendor central server systems.
- A casino floor may be 100 percent central server-based or any mix of central server-based and embedded games as the market and owner/operators so dictate.
- Vendors will make available any and all of their games to their or anyone else’s central server-based system.
- Economical pricing structures will have been developed that will allow any and all games and game types to be hosted on a central server-based system and thereafter be used as needed by the casino or called for by the customer.
- Game peripherals such as bill acceptors, ticket-in/ticket-out reader, and player club card readers may be added to central server-based systems with the same ease and flexibility as they are now.
- Power and data infrastructure will be no less flexible than what exists today in terms of allowing gaming devices to be located and/or moved virtually anywhere on the casino floor, and probably even more so.
- Games will be available in all of the current cabinet heights, footprints and configurations, but also in new formats not even offered today (e.g., thinner than the thinnest game now available).
- Games may also be downloaded to hand-held devices, tablets, televisions and other formats as long as they are located or transported within regulatory-approved geographical areas of the casino/hotel complex.
- Games will be promoted using a number of different approaches including but not limited to plasma screens, located either on the game, on top of the game, and/or near the game devices fed by messages from the central server.
- Casino management will be able to establish a much greater communication level and personal touch with the player via a greater stream of player information to casino management, and their ability to react on a more granular basis with much larger and flexible message areas (like the plasma screens).
- Central server-based systems will be accepted by a large majority if not all consumers.
- Regulators will allow all of the above to take place.
While everyone may not agree that all of the above assumptions may come to fruition, we believe that given sufficient time they will. Thus, this article assumes a matured and fully developed central server-based environment.
What, then, are the design implications of the introduction and integration of central server-based systems?
Less Hardware - In a central server-based environment, casinos will be able to serve the same number of players as they do now with fewer games on the floor. The primary reason is that the player will have the ability to download from a library of virtually an infinite number of games instead of the casino having to physically inventory all of the game types on the floor. There are also physical opportunities to reduce the floor space for the same number of games, because the games can be much thinner than their stepper-motor brethren.
The “right” number of games on the floor becomes a bit trickier in situations where peak demand periods constitute so much of the weekly revenue that it does not seem practical to reduce the number of games needed from Friday swing shift to Sunday day shift. Owners in this situation—and all owners who have any peak demand period variation, regardless of how slight—will be able to better balance their peak/off-peak demand with a central server-based system by increasing the “price” of playing the gaming device during the peak period, and lowering the “price” during off-peak periods.
With a central server-based system environment, the slot manager will be able to specify the denominations, coin-in per handle pull, and even the availability of games with tighter or looser par percentages as fast as the regulators will allow.
This strategy will drive those who want a better price-value and are able to play at other times to move some or all of their play to off-peak periods, thus making room during the peak periods for those who do not or cannot shift their play. Those who still chose to play during peak demand periods due to higher “pricing” measures by the casino will experience shorter playing time, thereby also making room for more players.
Other casinos with peak demand swings may simply be willing to provide fewer games on the floor knowing that the frustration from the player will not come from not being able to play “their game” but because no games are available. Put another way, as soon as a machine becomes available, the waiting players will have an opportunity to play their game.
In fact, it is not too crazy to think that a casino might take a reservation list, give the waiting player a beeper, and call them to a host desk to tell them when and where a machine becomes available. Under peak conditions, the central server system could be programmed to lock up after the end of a player session only to be unlocked by the host station.
Bottom line, all casinos will have the opportunity to reduce the number of games they have on the casino floor relative to serving their current volume of business.
Reinvesting and Reallocating Savings - The removal of one or more gaming devices on the floor has the potential to produce some very interesting financial benefits. They are:
- saved capital investment from the land and construction cost saved since less space is needed for the reduced number of machines;
- saved capital investment from the cost of a fewer number of machines and peripherals; and
- saved operating costs, since the casino will not have to staff the eliminated machine or area, nor pay for the heat/light/power to maintain the reduced space.
The potential capital savings can be illustrated taking a hypothetical example shown in the accompanying table. The example assumes a 2,000 machine, Las Vegas Strip casino and evaluates the potential land, construction, and machine/peripheral purchase costs assuming a potential reduction in machine count that ranges from -5 percent (or 100 fewer machines) to -30 percent (or 600 fewer machines). The total potential capital expenditure savings ranges from a low of $-4.3 million to a high of $-25.6 million. Beneficially, utilization rates increase from an assumed 35 percent base case utilization to a low improvement of 37 percent utilization to a high improvement of 50 percent utilization.
On a per game device basis, the saving per machine is approximately $42,600. This savings represents approximately a $14,000 savings per unit for land, $11,000 saving per unit for construction, and a $17,000 savings per unit for the purchase of the machine and peripherals.
The inescapable conclusion is that if the slot department can generate close to the same if not the same or even greater revenue in a smaller space with less equipment, the return on investment increases markedly due to a higher asset turnover. This makes owners, senior executives, chief financial officers, and Wall Street analysts happy. For directors of slot operations, there is also the benefit that was not quantified above for additional operating cost savings from reduced labor, utility costs, maintenance and repair expenditures, and other unit-driven expenses. These savings directly increase bottom profits making all stakeholders happy as well.
Some owners may choose to save these dollars while others may choose to reinvest them in ways that improve the guest experience or their competitiveness. For example, these saved dollars may be used to add other profit-generating activities, build to a higher quality level, purchase innovation and technology, and/or increased marketing efforts. These strategies, too, will improve financial performance.
New Games, New Customers - The convergence of changing technology and changing demographics taking place could lead to new games that would attract new market segments to the casinos.
Ironically, new games do not necessarily mean more units on the floor, as the previous discussion pointed out. But, new games could and should broaden and deepen the market. For example, the X, Y and Z generations raised with Sony PlayStations and Microsoft Xboxes may not be turned on by stepper-motor reel games, but could be motivated to visit casinos that offer “living rooms” with central server-based stations where either the players play against themselves, in groups, or in larger tournaments, perhaps using a common vid-wall screen so others can watch.
The games played could be gambling-oriented games, skill-based, or some combination of the two with par percentages and/or a per-minute or per-game charge generating the needed casino revenue. Similarly, generations used to playing online poker could be attracted to online poker play in a casino on central server-based systems that could offer environments that mimic their apartment or house but offer much more.
Poker get-togethers, conventions, and/or tournaments could be held for those who traditionally play poker online but now would have a chance to meet their opponents. As for the casino-experienced, aging baby boomers, they will continue to be provided the games they “grew up with,” but perhaps in more user-friendly ways, thus deepening the penetration of this market.
For example, a game on a central server-based system could have different font sizes to make it easier to read. Instead of stools that are unfriendly to those with canes, walkers, wheel chairs, and motorized ‘scooters,’ games could be downloaded to much more ergonomic cabinets and seating options, which are more cost-effective in a central server environment because of the prospect of much higher utilization.
Seniors will be able to play in areas that, like Goldilocks, are “not too hot, not too cold, but just right” for their body temperature and other needs.
Central server-based environments will also allow the less-mobile elderly to play with their mobile friends and family, because now, all can get their game types next to each other.
Given the expansion of gaming into other parts of the world, games can be cost-effectively customized to the cultural prerogatives of each market. Existing games with symbols that reflect the local culture could be easily added to the casino’s game library, or entirely new games developed that cater to the idiosyncrasies, history, and pop culture of a given area.
Perhaps most importantly in emerging markets, the casino operator and game developers will be able to test new games very quickly and get immediate feedback on whether they work or not. The cost to swap out or fine-tune an under-performing game becomes minimal in a central server environment.
In all, central server-based systems will accelerate the inevitable introduction of new types of games catering to new-entrant market segments.
Mini-Environments - Because in a central server environment the games can be brought to the player rather than the player having to go to the game, there is a great opportunity to create mini-environments that align with the multitude of visitor needs, wants and expectations on any given day.
This, too, should increase demand. At the most basic level, design concerns over low versus high ceilings, dark versus well-lit areas, windows versus no windows, or smoking versus non-smoking need not be an all-or-nothing choice for the owner and designers.
Indeed, casinos can now offer a little of everything, all sized into areas that contain the minimum number of machines needed to create the needed sense of winning—i.e., the player either is a winner, was a winner at some point in time during their playing session, or sees other players winning.
Taking this strategy further, playing areas could be developed that are near where entertainment is playing (e.g., a lounge), in “quiet” zones, or anything in between. Besides changing the games themselves, mini-environments could also be developed to cater to different cultures via the design of the gaming device cabinets, signage, employee uniforms, carpet, wall coverings and ceilings.
Food outlets nearby would be developed to align with the culture or market segment targeted, as well as the piped-in music played. Consequently, there could be anything as broad-based as Asian and Latino areas to more micro-areas such as those designed to cater to Vietnamese or Mexicans.
These areas could, of course appeal to other visitors who would enjoy being part of a different culture during their stay. Since the games can be changed so easily, going further, mini-areas could be designed so that they turn over to celebrate different holidays—Cinco de Mayo, Chinese New Year, etc.
Taking a cue from the phenomenon of clubs and ultra lounges, gaming areas could be designed around a club atmosphere. Couches, lounge chairs and bottle service could be provided along with a set number of terminals in their given area or an exclusive common area. Bars in which to “see and be seen” could be provided nearby, along with an exclusive table game area as well.
Since each unit in a central server system can downloaded from an infinite library of games, new games could be developed that cater to this young, hip crowd. And, the aforementioned X-box/PlayStation type games and online poker games could be part of the mix as well. A precedent has already been established at the Palms Casino Playboy Casino, a separate area away from the main casino floor, to charge admission.
From a psychographic perspective, those patrons seeking a social aspect to their gaming will now be able to play with their date, guests or group. Again, rather than two players having to split up to find and play the game each like to play, players will now be able to sit together in twos, threes, or larger groups. There is no reason that a casino might not take reservations to guarantee groups of players that the ability to either play in the environment they want to play or to gain access to exclusive, set aside areas.
For the competitive player, traditional competition of a slot tournament can easily be provided, except in this case virtually anywhere on the casino floor.
People psychology tells us that some people like to be in the thick of the action, others like the option of joining the action or not, while still others like to step back and just watch what is taking place. All of these people-dynamics and preferences can be accommodated with a central server system environment, since the casino can bring any game to the player in any given area.
For designers, this means that casinos need not be massive halls with a sea of slots; rather, they can be tiered vertically in raised or lowered areas and/or carved up along a horizontal plane into mini-areas where the only design limitation is to provide sight lines that allow people to watch people who are watching people.
Flexibility, Portability - Central server-based systems coupled with wireless technology, portable tablets and the ability to “send the game” to virtually any legal area within the site of the casino means that gaming can be located anywhere. A patron sunning himself at the pool could have a tablet device that provides the same games available on the casino floor. The same could hold true at the swimming pool bar, the more exclusive European/private pool areas, or those pool areas often shared by late-night clubs.
The increasingly popular cabanas at poolside could have games that could cater to anyone in the entourage with only several machines. Reception areas at meeting and convention centers, mezzanines of event centers and pre-show time periods in a showroom are also possible locations.
Games could be downloaded to the television or, to prevent underage gaming, a locked game cabinet in the player’s room, suite or villa. Super Bowl and bachelor/bachelorette parties held in suites could also be served by games customized just for a sporting event and/or centered on the theme of the party. The opportunities to provide gaming will only be limited by regulation and the creativity of the suppliers, owners, designers and operators.
It is Not Where You Start But Where You Finish that is Important - The potential of slot-oriented games offered on central server systems is like many new discoveries: the raw potential is perceived and can be appreciated but the exact utility of it and how that potential will be optimized is not and cannot be understood in the beginning. Only through the long term iteration of experimentation, use, and customer feedback will this potential be fully realized. So will it be for slot-based games on central server systems.
This first part of a two-part article on central server systems has introduced the potential. The second part appearing in the December issue of Global Gaming Business will explore more esoteric applications, some of which are quite exciting. Click here for part II
Dean M. Macomber, president of Macomber International, Inc. has 35 years of diversified experience in the gaming industry ranging from dealer to president, development to operations involving mega-destination resorts to locals’ oriented casinos in numerous domestic and international venues. Macomber provides high value, executive level consulting in the areas of strategic and business planning, feasibility and all other project development phases, and pre and post opening management and profit improvement engagements. He may be reached at office 702-456-6006.
Roy Student has been in the gaming industry for 35 years and is the president of Applied Management Strategies, a globalconsulting company specializing in the planning, marketing and sales of gaming products and central server-based systems. Prior to AMS, Student was president of Cyberview Technology Inc. and chairman of Gaming Systems International (GSI).He can be reached at 702-523-0444.
GLOBAL GAMES 2007
AC Coin & Slot - All About The Win
Communal play and innovative bonuses mark a strong game lineup
AC Coin & Slot long ago established its reputation as one of the top producers of slot bonus games in the industry. For the past few years, though, the Pleasantville, N.J.-based company has been building on that reputation in a big way.
AC Coin celebrates its 30th anniversary next year—it was founded by Mac Seelig in 1978 to serve the nascent Atlantic City casino industry—by rolling out new products in what is now a huge library of bonus games under the product brand “Mega Bonus Slots.”
The new brand name was revealed earlier this year, placing all games under a banner that reflects what the company is now all about—innovative bonus games—as opposed to what the company originally was, a supplier and partner solely to Atlantic City casinos. AC Coin originally provided everything from slot stands and table-game furniture to slot signage for the young Atlantic City casino market, as well as select machines. The company originally distributed slot machines for the old Jennings company, but in 1982, Mac Seelig forged a deal with Si Redd to become the exclusive Atlantic City distributor for what was then an unknown slot-maker, International Game Technology.
The IGT distributorship, eventually to include Caribbean casinos, remains lucrative to this day. However, for the past decade, AC Coin has moved way beyond the shadow of its famous partner to forge its own identity as a game developer. That identity began in 1996 with “Bonus Road Rally,” an arcade-style race of miniature cars on top of IGT dollar slots in Atlantic City. AC Coin took off nationally two years after that with “Empire,” the company’s first big hit, which featured a miniature gorilla climbing up a slot top box fashioned into a replica of the Empire State Building.
Its biggest hit, of course, came in 2000 with “Slotto,” the bonus game conceived by AC Coin Executive Vice President Jerry Seelig that features a Plexiglas sphere in a slot top box that is a replica of the apparatus used to draw the balls in televised lottery drawings.
Slotto has been a smash hit for AC Coin, and the company has spent its positive capital from the game on a host of sequels using the bonus-ball concept.
This year, AC Coin again capitalizes on the popularity of Slotto and its other greatest games with new versions, as well as launching totally new game concepts and improved versions of the new play concepts the company has introduced during the past few years.
One of those is the “communal play” concept, first seen earlier this year when the company released “Super Slotto Celebration,” an eight-player carousel of individual Slotto games surrounding a giant version of the patented Slotto sphere.
According to Jerry Seelig, that game, launched in June at Mohegan Sun in Connecticut, is spreading as quickly as the company’s New Jersey facility can crank the behemoth units out. He says there will be perhaps a dozen in the field in various jurisdictions around the country by the time the Global Gaming Expo begins.
The company is wasting no time in applying the communal play concept to both current themes and innovative new games, which will be well-represented at AC Coin’s G2E booth.
Seelig says the company will launch no less than seven new communal play concepts at the show, but that’s only part of what’s in store as AC Coin celebrates 30 years in the slot business. The company is using the show to launch new games in every one of its successful genres, from mechanical top-box bonus games using the Slotto concept in a variety of ways to new versions of its unique hybrid video slots.
Winning Concepts - Seelig says AC Coin’s slogan for this year’s G2E show is “It’s all about the win,” a credo directed both at casino operators and players. The specific products being launched, he says, are the results of the company’s research and feedback from operators on ways to achieve higher win and make the games more popular.
A good result of this is the collection of communal slot game presentations, which are all smaller setups than the eight-machine Super Slotto Celebration that is still spreading across the industry. “The seven communal games we’re bringing to the show are mainly in four-game configurations,” Seelig explains. “These are nice, manageable events that operators are going to be able to give players, including several different experiences from AC Coin. Each experience will be unique.”
He adds that Super Slotto Celebration taught the company’s game developers how to refine the communal experience. “It showed us what people like and don’t like, and what operators like and don’t like,” he says. “We found ourselves shrinking the communal experience a bit so it will fit on casino floors without displacing so many slots.” While the eight-player giant is popular, the smaller version allows for multiple purchases by one casino, he says.
Players will find some of the multi-player setups familiar. There is a four-player bank of the popular “Bankroll” bonus slot, which in its stand-alone version features a scrolling top-box display representing a continuous sheet of cash in various bill denominations. The display scrolls until stopping with an indicator arrow pointing to the player’s bonus award.
The new version of the game, called “Bankroll Bonus Reserve,” positions individual video-slot player stations around a giant cylinder. During the bonus round, a continuous sheet of bills scrolls horizontally around the giant display until landing in front of arrows in front of each player’s machine. The math is timed so several players can be entering the bonus at a time—bonus rounds are triggered on various machines during 15-second activation periods. Bills on the horizontal display indicate either bills or multipliers. If a player’s arrow lines up with a multiplier, the big display scrolls again for an amount to multiply. If two multipliers land, the player gets the combined multipliers times 200 credits.
Several of the other communal-style games employ methods such as these, which allow players to, as Seelig notes, “share the experience of the bonus without having to share the jackpot.” Beyond that, AC Coin has rolled out the Slotto bonus-ball concept in a variety of creative and entertaining new ways.
In “Pirate’s Cove,” the giant central sphere in the middle of the four player stations contains a ring of pirate-ship cannons, which shoot bonus “cannonballs” until each player in the bonus has two, one representing a credit amount and the other a multiplier. In “Sparky’s Smokin’ Hot Jackpots,” the bonus balls spew into the chamber from a fireplug—if the “Smokin’ Hot” ball lands twice in front of the player, the award is 10,000 credits. In “Mushroom Mojo,” the bonus balls fall from a mushroom umbrella; in “Slotto Volcano,” they spew from a simulated volcanic mountain, sculpted with AC Coin’s typical artistic flair. (“It’s nice to have your own sculpting shop,” says Seelig.)
Other communal games revive tried-and-true concepts in a new format. The scrolling Bankroll concept is revived with “Carousel Cash.” Instead of dollar bills, the scrolling horizontal display depicts horses in a carousel in an entertaining presentation of the same kind of bonus concept. “Super Big game Show Bonus” reprises AC Coin’s “Big Game Show” stand-alone slot in a three-game unit with a common central bonus display. Players in the bonus round get up to three chances at bonus awards—as lights flash around the display, the player presses a button to stop it on credit wins, multipliers or a devil character that ends the bonus.
Finally, AC Coin’s big news in communal play this year is the return of the game which arguably started it all—Empire. The new, communal version of Empire positions four individual slots around a four-sided replica of the Empire State building, each with a miniature gorilla climbing toward multiple bonus zones. As with the other communal games, one or several players can enter the bonus at the same time, although each bonus is awarded individually.
The company’s lineup of communal-style games is sometimes accompanied by some unique hardware other than the big sphere—namely, two-player loveseats instead of the standard slot stool.
Stand-Alone Strength - AC Coin’s new emphasis on communal play certainly does not mean the slot-maker has abandoned stand-alone slots. The manufacturer is launching new stand-alone games in all of its popular genres.
“Diamond Time” extends the theme of IGT’s five-reel, 20-line Double Diamond base game to a vertically scrolling, Bankroll-style bonus game with credit and multiplier awards
There are several new versions of the Slotto concept, each with its own unique way of displaying the swirling bonus balls. In “Great Goldfish Giveaway,” the bonus balls appear as “bubbles” inside the sphere, which is done up as an aquarium. In “Chef’s Daily Special Bonus” the bonus balls are presented as bubbling out of a steaming soup pot.
“Four Corners Bingo” is a clever extension of AC Coin’s bingo-style Slotto games. This one features four partially completed bingo cards, with the simulated bingo tumbler rolling to drop balls to accumulate bonus credits until one of the four cards is completed.
The company also is launching a great follow-up to its hybrid video game “Sparky’s Red Hot Jackpots.” The new game extends the series begun with that game, featuring a five-reel base game and a bonus game that combines one of the company’s signature physical figurines with a 3-D video bonus event on a giant color LCD screen.
This one’s called “The Masked Seven: Casino Hero.” The idea is that the mild-mannered casino employee transforms into the proverbial hero—with a slot-style “7” on his chest—when he sees casino thieves. Three bonus symbols on the base five-reel game trigger a sequence in which the video screen depicts the hero going into a change booth, a phone booth or another location on the casino floor—it changes every time—to change into his costume and save the day through one of four separate, random bonus sequences. Each sequence ends with the physical figurine of the masked hero blasting a villain to reveal a bonus amount.
“Sparky’s Red Hot Jackpots taught us a lot about doing video,” says Seelig, whose game developers traditionally dealt only in mechanical top-box bonuses. “It taught us how you need a solid storyboard before you start development of a video bonus sequence. Our video bonus genre has now reached its maturity.”
Other aspects of game development at AC Coin have reached maturity as well, including a Mac-configurable pay table from IGT that allows much more flexibility in the design of pay schedules. “It lets us get more creative,” says Seelig.
Expect to see a lot more games in the market from AC Coin in the coming year. “We’ve had great success this year,” Seelig says. “With growth comes challenges, and we’re rising to meet those challenges with lots of new games and lots of new platforms. We’re excited.”
The company’s expanding markets go beyond the nascent Pennsylvania market. AC Coin, which is licensed in all North American jurisdictions and all provinces in Canada, is currently examining several international markets for expansion of its products and its operations.
As the company expands further, Seelig says its credo remains the same: “It’s all about the win,” he says. “It’s what our customers expect of us. We’re committed to making as much money for our customers as we can.”
Aristocrat Technologies - Power and Performance
Aristocrat augments its slot library with ever-more innovative game styles
Aristocrat Technologies, the Las Vegas-based arm of Australia’s Aristocrat Leisure Industries, has been a clear leader in technological advances in the area of slot machines during this decade.
In rapid succession during the first half of the decade, we saw product introductions like Hyperlink multiple progressives, Bonus Bank ante-driven bonus games, the Reel Power scatter-pay configuration, 50-line and 100-line video slots—all groundbreaking game styles, and all much-copied within the slot manufacturing sector.
For the past couple of years, Aristocrat has been capitalizing on those innovations, augmenting its ever-growing game library by mixing and matching the various unique play methods and bonus features. The company also has positioned itself as a much more complete supplier to casinos, with efforts ranging from an alliance with North Carolina’s PokerTek to distribute the PokerPro electronic poker tables outside the U.S. (and purchase of a substantial stake in that company) to the acquisition of a 50 percent interest in Electroncek, the prominent Slovenian manufacturer of multi-player electronic table games carrying the famous Interblock brand.
Aristocrat also has made a point of improving its readiness for the coming age of digital slot floors, refining its systems for both server-based and server-supported slot gaming, and refining its “Gen 7” content delivery technology for those coming systems.
At this year’s G2E, Aristocrat has even more new game styles to unveil, as well as a blitz of new products and technological improvements in all of its existing genres of product.
“Our message this year is power and performance,” says Sean Evans, Aristocrat’s vice president of sales. “We’re taking our products to the next level.”
Slants and Steppers - Aristocrat is augmenting its improvements on the successes of the early decade with completely new product categories.
One is Aristocrat’s first slant-top offering, called Crown. Introduced last year, the new slant-top series offers the option of dual monitors—a giant color screen in the top box in addition to the one in front of the player.
“The second LCD in the top box was an addition we made over the past year,” says Evans. “In all, the slant-top has accounted for 15-20 percent of our total sales over the past few months.”
The Crown slant-top is available in three different finishes, including a sleek, 100 percent chrome version.
Another new series is the MAV Stepper series. While Aristocrat introduced its first steppers three years ago, Evans notes that the company’s engineers have since been making refinements and improvements to its nascent reel-spinning series.
This year, games in the MAV Stepper series are available in both standard-size and slim-cabinet reel-spinners, mostly in the low-denomination, five-reel, multi-line setup that Aristocrat made famous—but not forgetting the traditional player either. Titles such as Pompeii, Liberty 777 and Razzle Dazzle are available in denominations up to $5. They are traditional reel-spinners, with multiple paylines and free-spin bonus features bringing them into the 21st century.
“We’re happy with all the upgrades we’ve made to the MAV Stepper series, and all the trials are over,” Evans explains. “We’re in full selling mode now, and customers have commented that we got it right.” He says officials at Connecticut’s Mohegan Sun, which bought hundreds of the Aristocrat stepper games, say “ours are the best steppers they have in terms of reliability.”
The first suite of games for the MAV Stepper series are stepper versions of some of Aristocrat’s most popular MKVI video slots, including Big Ben, Queen of the Nile, K.G. Bird and Inca Sun, as well as new titles like Peacock Magic and Flame of Olympics.
Progressive Progression - While the hardware improvements have definitely boosted sales, Aristocrat’s content—in particular, more new game styles—is what has been driving new sales and increases in market share.
Nowhere is this more evident than in the manufacturer’s various progressive game groups, from the well-established Hyperlink four-level progressive series to the newest progressive group, called “Xtreme Mystery.”
The new Xtreme Mystery series, which is being launched officially at the G2E show, adds a three-level mystery progressive jackpot to any bank of video slots in the MKVI series—Aristocrat’s most familiar games. According to Evans, the operator can pick between three programs when deciding how quickly the progressive should increment—operators can choose to devote 2.1 percent, 2.5 percent or 3 percent of coin-in to the mystery jackpots. Once that’s set, the jackpot controller will use coin-in triggers to send a random jackpot to any of the linked machines.
“In Macau, 70 percent of our product is under this link,” Evans says. “You can use your whole library and interchange these mystery jackpot themes. With the mystery jackpot added, a new graphics package is loaded in that changes some graphics on the machines, and offers a unique way to display the jackpot in the top box.”
Other new progressive game groups for Aristocrat include the follow-up to last year’s Jackpot Deluxe series, called “Bank Buster.”
The Bank Buster series combines the Hyperlink multi-level progressive concept with an ante bet-and-bonus setup made popular by the “Bonus Bank” series. Like Jackpot Deluxe, Bank Buster offers the player the option to cover all the paylines and make a 25-cent ante bet to activate all the features. In Jackpot Deluxe, the ante qualifies the player for a free-spin bonus in which you can win up to all four levels of progressive bonus.
In Bank Buster, the ante qualities the player for entry into any of six separate Bonus Bank-style bonus features, each of which can lead to one of the four progressive jackpots. The bonus games are all simple pick-a-tile games or straight awards with no action required by the player. Two of the six games, “Hot Cash” an “Money Grab,” can lead to more than one jackpot being won multiple times.
“A four-level progressive with six bonus features represents a unique math structure for us,” says Doug Fallon, Aristocrat’s director of marketing. “In two of the bonus features, you can win all of the jackpots multiple times. In all of them, you can win up to all four jackpots. The second-screen feature is interactive, and it will keep the player on the product forever. It’s the most feature-rich game we’ve ever done.”
The “Mini” jackpot starts at $20, as opposed to $5 in most Hyperlink games. The top “Grand” jackpot resets at either $10,000 or $20,000. Familiar Aristocrat penny multi-line video slots K.G. Bird, Sun & Moon and Treasure King serve as the base games for the initial Bank Buster link.
In other progressive offerings, the penny Millioni$er multiple-progressive game makes its debut as a wide-area progressive, with a big-money top jackpot on games like Cash Express, Zorro, Loco Loot and Scorchin’ Fortune.
Cash Express, which was the first Hyperlink multi-progressive title, is being offered this year as a multi-game unit—players will be able to pick the base game they want to play under the common Hyperlink progressive bonus round.
Power Pay and More - Another new brand being applied to all of Aristocrat’s standard MKVI video slots is called “Power Pay.” This mode of play enables an ante wager to be made that switches a game from normal line configuration to the “Reel Power” mode, in which reels are purchased instead of paylines and all wins are paid as scatters.
The games are all 25-line video slots, so the minimum bet to activate the Power Pay mode in the penny denomination is a 25-cent wager to activate all the paylines, and another 25 cents for the ante.
Initial games being displayed in the Power Pay format include Wild Cougar, Tahiti Magic, Wicked Winnings II and Cho Sun Returns. However, Evans notes that any of Aristocrat’s games that employ an ante bet can be converted to the new format. “The ante bet allows us to be pretty flexible with our product categories,” he says. “The key thing we want to communicate bout this product category is that once the player makes that ante wager of five to 20 coins, it increases their overall return by anywhere from .5 percent to 3 percent.”
Other new game groups being launched by Aristocrat at G2E are improvements on popular existing setups. “Xtra Reel Power” adds an extra row of symbols to the Reel Power pay window—there are four symbols on each of the five reels instead of the normal three. That increases the ways to win from 247 to 1,024 possible winning combinations on each spin.
In the Bonus Bank series, Aristocrat’s new offering is called “Banana King.” According to Fallon, any MKVI base video slot can be converted to this theme and package, which adds five random bonus events with an extra ante wager.
Mobbed Up - New game groups for Aristocrat always mean new ways to mix and match the new game styles to create unique packages. One such game that will dominate Aristocrat’s booth this year is “The Sopranos,” a beautifully designed game depicting the hit HBO mob series. It combines the three-level mystery progressive concept from Xtreme Mystery with the new MAV Stepper reel-spinning series.
There are two initial base games—Top Boss and Welcome to the Family. Both are five-reel, 20-line games on the sleek new reel-spinning cabinet. On the top of each game is a large color LCD video screen, and banks of the machine are linked together under a giant video display showing scenes from the series. One unique feature that is a result of linking the games to a computer controller is that the title of the series runs across the video screens of all four games in a bank in a continuous motion, depicting the opening sequence from the show.
Both games have free-spin bonus rounds. On Top Boss, from five to 50 free games are awarded depending on how many triggering symbols hit, and all wins during the free games are doubled. On Welcome to the Family, eight free games are awarded with symbols depicting characters from the show becoming wild in free spins.
At any time, coin-in levels on the bank can trigger a random award of one of the three progressive jackpots, “Soldier” (starting at $10), “Capo” ($100) or “Boss” (starting at $500 or $5,000). When that happens, the overhead screen and the top screens of each game launch into a video sequence from the show as the jackpot is awarded.
A third Sopranos title, Play to Get Made, will be released in December. This will be the first reel-spinning slot to use Aristocrat’s “Reel Power” configuration, in which the player purchases reels instead of paylines and all wins are paid as scatters.
“We’re going to be the first company with a Reel Power-style game on a stepper slot,” says Mitchell Bowen, Aristocrat’s regional marketing manager in Nevada. “This is one of our games that will target the three-to-five-line, higher-denomination market.”
In fact, the new Sopranos offering will be joined by other Aristocrat slots in all categories that are designed for higher denominations, in a section of Aristocrat’s booth called “Player’s World.”
“This is a segment of the market we feel has been neglected,” says Fallon. “Moving the dollar segment from a three-reel world to a five-reel world certainly makes sense.”
All of the new and improved game groups will be accompanied by new titles in stand-alone form, in the Double Standalone Progressive series, and in every other category. In all, there will be 192 games in 10 different product categories, in a G2E booth that looks more like a casino than a show display.
Into the Future - One section of Aristocrat’s G2E booth will be devoted to the coming world of server-based and server-supported gaming. Aristocrat is launching several products, and an entire new platform, designed for the coming digital age of slots.
The company’s system division will be showing both of its server-based solutions, the “DL” series for server-supported gaming and “ACE Interactive” (for “Aristocrat Contact Exchange,” a result of the company’s purchase two years ago of the Swedish system company Essnet) for full-blown server-based gaming. “Our DL system is thick-client, and still very proprietary,” says Evans, “with all the intelligence residing in the machine. We see the world going to thin-client, with the RNG residing at the server.”
Both systems will use Aristocrat’s new “Viridian” cabinet, a thin-profile cabinet with two large LCD screens—the top screen substituting for slot glass to enable quick game change-outs.
In line with the preparations for networked gaming, Aristocrat will use G2E to launch what will be the basic slot format that will succeed the MKVI platform that it has used for several years.
Called “Gen 7,” the technology employs compact flash content instead of the EPROM-based motherboard used in MKVI. According to Evans, it is a technology that can be introduced now, in current slot floor configurations, and move seamlessly into server-based and server-supported applications. Moreover, all MKVI games produced from 2005 on will be upgradeable to Gen 7.
“The Gen 7 platform can drive MKVI-generated content, so we will be carrying our entire game library forward,” Evans says. “It is a platform for today, tomorrow and the future.”
Atronic Group - Harmony and Passion
Atronic gives its innovative game groups new looks and classic style
The Atronic Group of Companies is undergoing yet another transformation in a history that has crammed great success and monumental change into a couple of brief decades.
It was, after all, only 14 years ago that Germany’s Gauselmann Group bought what was then a small Austrian producer of video slots, at the time a pioneer in the use of 3-D animation in gaming applications. Today, the Atronic Group consists of three major divisions—Atronic Americas in Arizona; and Atronic International and Atronic Systems, both in Austria—and is one of the most highly regarded slot manufacturers both in Europe and the U.S.
Next year, there will be another major change for Atronic. GTECH Holdings Corporation, the Rhode Island-based lottery giant which entered the casino business a few years ago with the acquisition of Canada’s Spielo, will, in 2008, complete its acquisition of a 50 percent controlling interest in the Atronic Group.
With the acquisition, the Gauselmann Group will return its management attention to the amusement-with-prizes game business on which its fortune was built, and Atronic will gain a partner with extensive footholds in lottery markets and in central system technology, which will lead the slot-maker into the future with server-based gaming applications.
These changes, however, will not change what Atronic is today. Instead, the developments stand to augment Atronic’s position as a force to be reckoned with in slot game and system development, and the combined resources of Gauselmann and GTECH will mean that all three of Atronic’s international R&D groups will continue to crank out innovation after innovation.
These in-house groups will be aided by some outside developers—most notably Games 4 You, formed last year by former Atronic game development manager Jason Stage, with an equity stake by none other than Gauselmann Group CEO Michael Gauselmann. Games 4 You has gotten off to a big start, developing new slots exclusively for Atronic at the outset.
For the past few years, Atronic has introduced groundbreaking new game groups, from its innovative “e-motion” series to multiple progressive games like “Cash Fever” to “eMillions,” the clever multi-site progressive system that pays off a top prize resetting at $1 million at max-coin or a million credits with less than a maximum bet.
Atronic also has broken into the branded slot market with some carefully chosen and masterfully executed brands—most notably Deal Or No Deal, The Game of Life and the newest, released last summer, “King Kong Cash.”
This year, Atronic uses the G2E show to showcase expansions and improvements in all its existing game groups, as well as a few brand-new game groups that stand to break even more ground.
“We’ve spent the year expanding our product line and providing depth to our product groups,” says Krista Colonna, senior marketing manager. “Our goal has been to provide a better product not only for players, but to casino operators.”
New Looks - Many of Atronic’s product line improvements and additions are revealing some decidedly new looks to the company’s strongest games.
For instance, the Harmony Slant Top, the manufacturer’s first slant-top offering, is a radically designed game offering with an ergonomic cabinet and a sleek, space-age look. Atronic has done more than provide new hardware for existing game content, though. The Harmony Slant Top comes to casinos ready-made with an entirely new game library.
“We have created titles for Harmony that have not been introduced in the North American market,” says Stage. “It has its own library of games separate from e-motion and Atronic’s other existing game groups.”
Among the new games loaded into the Harmony Slant Top is Mystical Journey, a game marked by beautiful artwork and a lot of innovative features. There are several wild symbols in the base game, and the player gets a choice between two bonus rounds—free games with all jackpots tripled, or Atronic’s special “Spin As Long As You Win” bonus. In the latter, the player continues to spin free games as long as he achieves at least one winning combination. Joker symbols extend the bonus if no wins are achieved.
Another emerging game group for Atronic is the manufacturer’s first stepper series, known as “Passion Slots.” According to Ken Bossingham, Atronic’s chief operating officer, the reel-spinning series, launched at G2E last year, is ready for widespread release. “We’ve now had some placement in the market, and we have a complete range of approvals,” he says. “So, we’re taking it to the next level with more depth in game performance and product offerings.”
“We had a core series of games for the series,” adds Stage, “and now, with our Deluxe Top series, we have a premium line that constitutes the next evolution of our stepper.”
The Deluxe Top series adds an interactive touch-screen LCD monitor in the top box, taking the series beyond the traditional reel-spinners to create stepper versions of Atronic’s top video slots.
Among the first two Passion Slots entries in the Deluxe Top version will be the first reel-spinning versions of Atronic’s strongest branded video slots, Deal Or No Deal and The Game of Life.
Branding Success - Speaking of the company’s big brands, Atronic is releasing new versions this year of “Deal” and “Life,” as well as new titles for its King Kong Cash video series.
“We have two new Deal Or No Deal links, and we’re expanding our base game library for King Kong Cash and Game of Life,” says Colonna. “Also, we have four new stand-alone titles for Game of Life. It all fits our overall theme of expansion and product depth. We’ve been seeing tremendous success with all three of our big licenses, so we’re expanding the product depth in all three series.”
“Deal or No Deal: The Experience” will be a linked bank of video slots featuring three interactive bonus rounds and a multi-level progressive. “Deal or No Deal: Mega Deal” is a is a multi-site progressive with two levels of progressive jackpot. According to Colonna, both levels of jackpot are set to hit at least once a month, on average.
Both new versions of Deal Or No Deal feature the original game’s re-creation of the “briefcase round” from the popular TV game show as the central bonus feature. The “Briefcase Bonus” is a pure gambler’s feature, giving players the chance to pick a briefcase and decide whether or not to take successive offers from the “bank”—whether to take a risk on whether the hidden bonus amounts left are larger or smaller than the offer.
The “Mega Deal” version of the game is the first to carry the brand to the eMillion$ wide-area progressive link. “We’re keeping the rapid hit of the local-area progressive on the game, and adding a second, big-money progressive, also rapid-hitting,” says Bossingham.
“The Game of Life: Career Choices” is one of the most feature-rich games Atronic has ever produced. Several wild symbols spice up the base game, and the bonus board game on the top video screen in the e-motion setup contains a remarkable collection of side bonuses as the player spins to different spaces on the board. Credits and free spins surround special spaces like “Choose Your Job” and “Business Trip” on the video replica of the classic game boar. Those special spaces trigger secondary screens as the player picks a profession or location to reveal hidden prizes.
Other progressive offerings from Atronic will include more new games in the eMillions wide-area progressive link, in both penny and nickel denominations. New game titles for the link include Himalayan Gold, Money Magnet and Moonlight Mansion. The eMillions link is slated to launch in Nevada this year, with top jackpots resetting at $1 million or 1 million credits—the prize with less than a max bet—in the nickel denomination, and $250,000 or a million credits in pennies.
“The eMillions product is entering its third year of operation,” notes Sean Knight, product marketing manager. “We’ve added the penny denomination to it, and of course, we’ve supplemented the link with new titles. We’ve maintained our ability to keep the link fresh by bringing in new games.”
Atronic also will show extensive additions to its “e-motion” game library, including games designed to go with both of the slot-maker’s special rapid-hit progressive jackpots, “Mystery Magic” and Hot Link.”
“Last year, we brought forth titles that could be linked together either to Hot Link, where a winning combination is required to hit the progressive jackpot, or Mystery Magic, where no winning combination is required,” explains Bossingham. “Every game going forward will now be capable of linking to either Hot Link or Mystery Magic. It provides an opportunity for our customers to have a value-added concept in addition to the core link.”
One unique aspect of Atronic’s two progressive controller products is that they can link slots with different titles and multiple pay tables to the same jackpot. “You can take any bank of Atronic games and put one of these progressives on all the games,” Stage says.
Classics - Also expect more versions of its classic brand Sphinx, the game that put Atronic on the map in the U.S. a decade ago. The company already has introduced “Super Sphinx,” a new version of the game, and “Sphinx Classic,” which replicates the groundbreaking 3-D animation of the original game, which was Atronic’s first international franchise brand. “We’re really excited to bring Sphinx back, as the original game but in our e-motion platform,” says Colonna.
In addition to classic Atronic, the manufacturer is dabbling in some classic denominations this year—mainly, quarters, dollars and higher.
“The low-denomination market is mature and healthy, but it hasn’t taken over the entire floor,” says Stage. “Now, we’re ready to fulfill areas that we feel are under-served.” That means more quarter and dollar denominations will share space with Atronic’s more common penny and nickel offerings.
Finally, the manufacturer will, for the first time, show a multi-player roulette game carrying the brand of Slovenia’s Alfastreet, but manufactured in the U.S. by Atronic. Atronic’s first Alfastreet game, the R8 model that is the Slovenian manufacturer’s top European product, has just been installed at the Mystic Lake casino in Minnesota.
“There’s been a maturation of the gaming player in America, and the big buzzword these days is community gaming—the social gaming concept,” says Bossingham. “This is another concept that can satisfy that trend. We’re placing it in Minnesota first, and after testing it in that market, we will roll it out based on market acceptance. It’s very important that the Alfastreet name is there as a manufacturer reference, but Atronic is becoming the manufacturer of this product line in North America.”
The electronic table games round out an Atronic product line that is increasingly divers. “We’ve worked really hard to diversify our product line, and we’re willing to look outside of the company to widen and diversify that product line,” Bossingham says.
Once GTECH and Spielo are added into the mix next year, look for the company to grow to new heights.
Bally Technologies - Alpha Wave
Bally rides the popularity wave of its new platform with a product showcase
Bally Technologies has been celebrating all year.
Most of the celebrations have marked the 75-year history of the Bally brand, created in 1932 for a pinball game in Chicago before going on to become the most well-known icon in the world of slot machines.
Even more significant than those anniversary parties, though, has been an ongoing celebration of the brand’s rebirth over the past two years. It began with last year’s launch of “Alpha Elite,” the new operating system for both video and stepper offerings in Bally’s product line. Alpha Elite was the culmination of two years of work by Bally engineers, who merged the technology inherited with the 2004 acquisition of Sierra Design Group with Bally’s own ongoing development efforts into a platform that would first replace the old, ineffective “EVO” video platform, but would ultimately drive all Bally game products.
Last year, the manufacturer introduced several new game styles, placing the powerful new game content into several interchangeable, wide-screen formats. The development of the wide M9000 cabinet permitted strikingly wide reels in stepper games, and three different video formats—CineVision, the movie-style wide video screen in the recessed cabinet that offers a movie-theater effect; the “V20” with its wide, 20-inch LCD monitor; and the “V20/20,” with dual 20-inch monitors offering a wealth of game possibilities.
In addition to the wide-body cabinets, Bally has achieved great success with the “V32” cabinet. With its long, vertical screen, it was originally intended for Europe. However, the company’s video roulette and keno games have taken off in North America.
Bally also has introduced products that portend the digital, server-based era—in particular, its “System Games,” offering players bonuses and secondary games beamed through player tracking systems to its “iVIEW” screen, a small, interactive monitor that mounts on the face of a slot. Bally has sold thousands of iVIEW units across the industry, and sales of the interactive screen are still rising.
“iVIEW is the cornerstone of what we’re doing with the networked slot floor,” says Mike Mitchell, Bally’s vice president of game development. “Whether it’s a Bally, WMS or IGT game, this is the one component that will be on every game. We’re going to do tournaments on this device; we’re going to do bonusing. We’re doing some of that already. Because it’s being installed on every game, it’s a way to touch the player today, versus further down the road with the open-architecture, fully networked floor that some are touting.”
Bally’s new games on the Alpha Elite platform are universally praised by slot operators across the industry, and combined with the fact that Bally still practically owns the system side of the slot manufacturing sector, the company is currently one of the hottest commodities in the casino business.
Most importantly for the company, the years of accounting woes in which earnings had to be restated for 2005 and 2006 are behind it, and investor confidence and, consequently, the price of the company’s shares, are soaring again.
This month, Bally reveals more of what it has done to earn that investor confidence, drawing on all of its new technology and recently introduced game styles to create a powerhouse collection of new products for the G2E show.
Playing the Strengths - Bally is using its interchangeable cabinets and strong game styles to capitalize on some of its most successful game innovations of recent years.
Quite possibly the most successful of those innovations has been the Hot Shot Progressive series, begun with a five-reel video version of the classic Blazing 7s game. Hot Shot burst on the scene two years ago with an innovative progressive bonus round—five progressive jackpots tide to bonus spins on miniature reproductions of classic Bally reel-spinners. The player gets a spin on one of the tiny, sharply animated slots for each bonus trigger symbol he lands, and depending on the results on the tiny reels, gets either a bonus award or the corresponding progressive prize for the top jackpot of the classic slot.
Hot Shot has been a runaway hit for Bally, and according to Mitchell, it’s time to capitalize on that success.
Bally will this year begin to introduce sequels to Hot Shot. “Three new Hot Shot game tiles have been developed, submitted and approved, and we’re rolling them out as needed.” Mitchell says. He says “as needed” simply because it is not yet “needed”—the original Hot Shot has shown no signs of slowing down. “Our order backlog and sales performance have been very strong on that product,” he says. “There are over 3,000 in the field that use the ‘7’ themes.”
The original Hot Shot has a Blazing 7s base game with the miniature slots in the progressive round all variations on the multiple-7-combination theme—miniatures of Diamond Line and similar Blazing 7s variations. The next three versions will emulate other successful Bally legacy themes.
There is a “Times” version of Hot Shot approved, using games like Bonus Times, Wild Times and Hot Times. There is Hot Shot Frenzy, in which the five progressive miniatures are variations of the game genre that uses the extra “bonus reel”—Bonus Frenzy, Fireball Frenzy, etc. A third variation will use the “Money” theme—In the Money, Money Bars, and so forth.
“All of our really popular Bally games will be brought over to the Hot Shot series,” says Mitchell. “It is a popular brand, and we are still building on it.” That includes a reel-spinning version introduced six months after the original Hot Shot video was launched, he says. Those versions, of course, include the 20-inch LCD video monitor in the top box, on which the miniature slots play out the progressive bonus round.
New twists to the progressive rounds in the Hot Shot genre include expanded pay schedules on the miniature slots—Mitchell says they’re very similar to the stand-alone games they represent, offering players more bonus options outside the progressives—and inclusion of video slots in the progressive rounds in addition to classic reel-spinners.
The Hot Shot concept is being parlayed into other new games, including a multiple-progressive version of the game Reel Money, which includes a Monte Carlo-style roulette bonus feature and guaranteed wins on each of the miniature slots.
Repeat Performances - Other solid performers Bally is offering in various styles and cabinets include Golden Monkey, with its unique random progressive bonus round utilizing a “ladder”-style top box display. Players go into free spins, and each time a monkey symbol lands on the reels, the option is offered to take a guaranteed bonus award or to “store” the monkey symbol for use in a bonus round. When the progressive bonus round is triggered, the number of monkey symbols determines the level of progressive the player chases.
There also will be a complete lineup of games featuring Bally’s “Instant Spin” mode, first introduced last year with the game “Reel Winners.” The Instant-Spin mode (the technology is patent-pending) is added to games with the Monte Carlo-style bonus roulette wheel in the top box. “With each spin, the computer randomly decides whether the customer will spin the reels or play the top-box bonus,” Mitchell explains. He notes that at fairly frequent intervals, the ball will simply start rolling around the top-box roulette wheel when the player hits the spin button.
At G2E, Bally will show three new versions of the Reel Winners-style game, called Ultimate Diamonds & Sevens, Ultimate Party Spin and Ultimate Dragon Spin.
There also will be a new version of what has been one of Bally’s highest earners of the year, a video blackjack game with seven video play stations, each taking a dollar wager. At G2E, Bally is launching a version that takes an eighth credit, which qualifies the player for bonus jackpots for two or more dealt blackjacks. With eight coins wagered, two dealt blackjacks doubles the payoffs on all hands. Three dealt blackjacks multiply all winners by 10; and if you get four dealt blackjacks out of the seven hands, you take home a bonus of $10,000.
“The issue has been that blackjack by itself does not offer a lot of volatility,” Mitchell explains. “Players loved the original game, but the feedback we got was that it was not volatile enough. So we’ve added that extra dollar wager to add some volatility.”
The new blackjack game also is an example of what Mitchell says is a resurgence in higher-denomination games. He says in the slot area, this will mean more traditional styles than players have seen in recent years. “You’re seeing a lot more traditional formats in three-reel, four-reel, and even five-reel configurations,” he says. “We will have a lot of games truly designed for quarter, 50-cent, dollar, $2 and $5 customers.”
Bally also is launching new versions of popular game styles such as Power Progressives, a line of multi-level progressive slots including classic Bally titles; and a new version of what has been its most successful proprietary video poker game, Pick ‘Em Poker.
The wide-screen adaptation of Pick ‘Em is a 10-hand version of Bally’s classic stud poker game, in which the player is shown two cards and picks one of two groups of remaining hands by looking at one card. The player ends up with 10 hands per pick, using the same strategy as the original Pick ‘Em Poker.
Rounding out the games in which Bally capitalizes on previous innovations are improved versions of Pong and S&H Greenstamps, both in the CineVision cabinet.
Pong allows the player to play the classic Atari table-tennis game against the computer for jackpots. The bonus round is a classic game of Pong, with a minimum guaranteed jackpot but with higher awards according to your skill level on the classic arcade game. It is the first game anywhere in which physical dexterity can be used to gain a higher award, although Mitchell notes it is only a small portion of the total payback of the game—7 percent is guaranteed if you do nothing in the Pong bonus game, which is one reason the game got through regulatory scrutiny.
“We had to do some heavy lifting to get Pong through all the regulatory feats,” Mitchell says. “It’s now approved in GLI and Nevada, and the games have been out for a few months now. We’re starting to see good earnings from it.” The original Pong is a video slot, but Mitchell says it soon will be released in a reel-spinning version, with the same skill-based bonus round on the top-box LCD screen.
At G2E, Bally will reveal the second game in its skill series, with another replication of an Atari skill-based arcade game—“Breakout.”
Finally, a new version of the S&H Greenstamps game is being introduced. In this game, players accumulate “stamps” during free spins that can translate into one of five progressive jackpot levels.
CineReels and Game Maker - Bally is further rounding out its product library this year by translating the CineVision concept, with its wide, recessed screen replicating a movie theater in video slots, into the reel-spinning area with a new game style called “CineReels.”
All of Bally’s top games in reels, including classic three-reel, single-line game, the “Frenzy” four-reel games using the extra bonus reel, five-reel multi-line games and the seven-reel “Two-Way Frenzy” setups, are being launched in the unique format.
(The seven-reel setup consists of two three-reel games with an extra reel in the middle spinning to bonus events applying to results on the two other reel sets.)
“CineReels is really the combination of our mechanical reel-spinning slot machines with our CineVision cabinet,” says Mitchell. “The game series will be fully populated at the start with all of our top S9000 reel-spinning programs, including Quick Hits Progressives, Hot Shot and a number of different styles.
CineReels also includes a couple of innovative new games, each providing a glimpse of the kinds of developments to expect from Bally in server-supported and server-based gaming setups.
“Breeders’ Cup” links six CineReels slots to a common bonus round of a horse race, played out on the top-box video screen and a giant overhead plasma display. Players place quinella bets on a six-horse race, and when one player triggers the bonus round, all qualified players enter the overhead race.
“Super Tournament Progressives” is another six-game CineReels link. In this setup, a random “Instant Win” feature initiates an instant slot tournament among the linked games. Players compete for one of five levels of progressive jackpot by playing free games for points instead of jackpots. The top three point-scorers are eligible for progressive jackpots with resets ranging from $10 to $1,000.
Finally, one of the biggest pieces of news for Bally this year is the return of its classic multi-game lineup using today’s technology.
Game Maker HD brings back the Game Maker multi-game format in Bally’s advanced Alpha Elite video platform, and in any of three upright cabinets, with available themes ranging from the Hot Shot video slot to Pick ‘Em Poker, blackjack and keno games.
Game Maker HD and Multi-Poker HD, the multi-game video poker version of Game Maker, are both available now in a new bar-top setup called “CineBar.” This takes the wider 20-inch monitor and places it in a bar-top mode for a more clear, wider-screen version of bar-top slots than has ever been seen.
“We’ll have several suites of Game Maker software,” Mitchell says. “We’ll add more as time goes on. We’ll customize it, tweak it—we don’t’ have limitations as far as space, so we can customize the software and pick the very best games to suit each customer.”
In all, it’s part of a Bally G2E booth that will feature more than 100 unique game titles in nearly 11,000 square feet of space, which will also display Bally’s vision of the “Networked Floor of the Future” in a showcase of server-based gaming applications.
With the anniversary celebrations complete, G2E for Bally celebrates the launch of the company’s next 75 years.
Casino Technology - Banking on Creativity
Casino Technology launches new titles ahead of a completely new video slot platform
Casino Technology has been in an expansion mode since its inception.
Incorporated in Sofia, Bulgaria, in 1999, the company immediately set its sights on supplying video slots and progressive systems not only in Eastern Europe, but in several continents.
With products approved and certified in 16 countries, Casino Technology has established offices in Africa, Central Asia and Latin America in addition to its key markets of Central and Eastern Europe. The young company has more than 50,000 games installed in multiple international jurisdictions.
The company’s focus this year has been on a corporate commitment to innovation and quality. At G2E, Casino Technology will showcase a complete lineup of new slot titles, plus a few groundbreaking new products.
The company is using the G2E show to showcase additions to what is an increasingly extensive library of games with innovative concepts and new presentations.
According to Rossi McKee, the company’s vice president, Casino Technology’s new suite of games features enhanced graphic capabilities. “The product must inspire and addict the player, touching his feelings and inner nature,” McKee says. “Emotion and passion presented through cutting-edge technology solutions is what we believe as being the right formula.”
New game titles include several multiple-progressive games, a format made popular by the Casino Technology hit “Quatro Cash Mania,” a four-level mystery jackpot progressive system featuring multi-media animation and additional bonus events beyond the progressive. The progressive system is compatible with more than 40 of Casino Technology’s slot titles.
Periodically, the jackpot controller randomly chooses one of the slots on a linked bank for a jackpot sequence that begins with a bonus screen. There is a story line to the common bonus round, communicated in multi-media animation on the jackpot display.
At G2E, the company will display three initial themes of the common progressive bonus round in Quatro Cash Mania, “Alchemic Joy,” “Zeppelin Respin” and “Columbus Treasure.” The latter, which is the newest sequence, presents the story of Christopher Columbus in rich, multi-media animation on the jackpot display.
“In terms of game titles, we’ve developed a completely new and extensive library, and a series of multi-games with a new look and a new interface that enhances the player’s experience,” McKee says. “Each has five to six titles, including not only video reels but video poker. The majority of the new titles maintain progressive features and a collection of themes and concepts.” She adds that the company is creating a variety of jackpot setups to augment the original four-jackpot configuration.
G2E Focus - According to McKee, the main focus of Casino Technology at G2E is to showcase the company’s creativity in a lineup of new titles. One product that certainly achieves that goal is “PlayMe,” a four-player roulette game built into a grand piano. An automated roulette wheel is embedded in the top of the piano, and four player stations surround the the outside, resembling a piano bar including a roulette game.
McKee says the product operates not only as an auto-roulette game, but also as a manually operated reoulette game. New bonus features are being developed to create a more interactive environment among players, the piano and the music.
The product was first unveiled in September in Kiev, and McKee says it already is enjoying great popularity with several installations in Eastern Europe.
Further expansion is in the works for Casino Technology. The company is working on entering Asian and South American markets, and next year, it will contemplate entry into North America.
For now, though, McKee says the company will focus on the relationships it has built in Europe, where Casino Technology is well-known to operators in Austria, Czech Republic, Hungary, Romania, Slovenia, Croatia and Bulgaria.
Cadillac Jack - Complete Solutions
One of the top Class II suppliers aims to go mainstream
For a dozen years, Georgia-based Cadillac Jack has been establishing itself as one of the premier suppliers of electronic bingo game content and systems to Class II Indian gaming markets in the U.S. The company’s system and games also provide some of the only gaming in Mexico, still a bingo-only market.
For the past few years, though, the company, founded by Class II pioneer Mike Macke in 1995, has been making steady progress toward success in Class III markets. The company already has placed product in Oklahoma, and has achieved GLI certification for many of its games for placement in Native American Class III markets.
“We are finding higher and higher levels of success in the Oklahoma market with our Class III product,” says Kunal Mishra, vice president of product management and marketing for Cadillac Jack. “Our coal is to place Class III games wherever Class III is available. We have applied in Mississippi—our strategy is to secure approval there first, and then to follow up in Nevada and New Jersey.”
At this years’ G2E show, Mishra says, the company’s goal is to “show ourselves as a complete gaming solutions provider.”
Aside from its games and progressive systems, the company will be showcasing its server-based system, borne of Class II necessity but perfect for Class III server-supported and server-based applications as well. The server-based system includes a full suite of player tracking tools and a wireless POS station as well as capability for downloading of game content and interactive play features.
Progressive Prowess - The company’s showcase product at G2E will be “Cadillac Cash,” a wide-area progressive system with a complete suite of various base games (including a game called Cadillac Cash) that has shown itself to be highly adaptable to various markets.
“Presently, it is being run as a wide-area progressive in Class II markets and in Mexico,” Mishra explains. “It has been running since October of last year, and the international rollout began in April. Part of our focus at the show is to demonstrate that Cadillac Cash is a niche product that fits into a Class II space where there are not a lot of WAP products, as well as in Mexico, where we are the only provider of a WAP system.”
The link is already popular in several international markets. Cadillac Cash features several different base games linked to a common jackpot, and features the company’s “SpeedPLAY” and “PlusPLAY” technologies, which provide faster game play and multiple bonus features including free spins, multipliers and the company’s “Anticipation Spin,” which draws out the final reel result in winning combinations to create some extra excitement.
The game uses a two-tier bonus play in which the player is awarded both a multiplier award and a random number of free spins.
One key to Cadillac jack’s success has been its ability to adapt and customize product specifically to each market it serves. For instance, one of the company’s most successful products has been its Latin Bingo Suite, a group of bingo games designed for Latin American markets that offer players the opportunity to buy additional bingo balls to complete winning patterns. Premium Bingo, Bingo 9, Galactic Bingo and Turbo Max Bingo are among the first game titles popularized by the series.
In addition to showing that suite of products at G2E, the company will highlight a complete lineup of new stand-alone games for both Class II and Class III applications, all featuring multi-denomination wagering and improved graphics and sound. Among Cadillac Jack’s newest games to be exhibited are So Hot, Crazy Clowns, Viking Loot, Jazz Nights, Forgotten Fortunes, Seven Heaven, Pirates Plunder, Special Delivery and Bayou Band.
“Our strategy is simple,” says Mishra. “We don’t aim to be the biggest, but we pride ourselves in the agility of our processes and the speed of our development. We go out with our base product and commit to each casino to localize our product for their market. We go into a new market, search out strategic customers, and place our product, always tailored to the local market, whether by using regional celebrity themes or by providing the most popular game styles for that market. “We believe we have a track record that will serve us well.”
Cyberview Technology - The Next Generation
Cyberview’s system addresses new generations of games—and customers
Three years ago, Cyberview Technology broke new ground in the industry when it became the first supplier to achieve regulatory certification for a downloadable, server-based gaming system.
Server-based and server-supported gaming, of course, have become the new buzzwords of the industry, and most of the major slot manufacturers are working on ways to create, operate or supply a networked, digital slot system.
Cyberview, while certainly putting its downloadable gaming system through rigorous testing in various jurisdictions, has never stopped developing ideas and new technology for the coming digital age of slots.
The Cyberview server-based platform itself has been lauded for its security model, which the company is refining under an initiative it calls “Trustworthy Gaming Systems.” According to a white-paper document the company released in September, “Trustworthy Gaming Systems is Cyberview’s initiative and long-term effort to create and deliver a secure, agile, future-proof and profitable computing platform to game operators.”
Security has been the company’s credo since its founding, and has been essential for its creation and operation of systems running thousands of fixed-odds betting terminals in Great Britain. The company has devoted the past few years to developing and perfecting a system with the same level of security for slot machines in North American commercial casinos.
“Trust in the computing platform and related procedures is critical for Cyberview to deliver on its promise to provide advanced, end-to-end secure distributed gaming solutions,” the white paper says.
Trusted Agility - Cyberview has taken a lead in refining server-based and serv
Columns,
No Problem in U.K.
The British Gambling Prevalence Survey 2007 was published by the U.K. Gambling Commission in September, revealing to the surprise of the British media that problem gambling has not increased since 1999.
The survey quizzed more than 9,000 people between September 2006 and March 2007. The commission admits that it had expected to see a rise in the number of problem gamblers due to Internet betting, but that the opposite was in fact the case.
Only a small proportion of people engaged in the new forms of gambling available in Great Britain:
• Of the total population 4 percent had used
the internet for betting and 3 percent for gaming (of gamblers only this
represented 6 percent and 4 percent respectively).
• 6 percent of the general population gambled on the internet and this equates to over 3m people.
• 54 percent of online bettors bet less than once a month, compared to 50 percent of online gamers over the same period.
• 11 percent of online bettors bet more than 2 days a week, compared to 21 percent of online gamers.
• 36 percent of all gamblers are involved in at least three categories of gambling.
"We were not surprised by the numbers," Simon Holliday, a partner with Global Betting and Gaming Consultants, said. "Although we do not track problem gambling numbers, we have always viewed the British gambler as having a healthy view and exposure to gambling."
The study, conducted by the National Center for Social Research (NCSR), measured participation in gambling, assessed the level of problem gambling and gauged the public's attitude toward gambling.
Despite the availability and popularity of a range of new gambling products, the study found that problem gamblers comprised between 0.5 percent (236,000) and 0.6 percent (284,000) of the British adult population. The figures were extrapolated from answers given by the study's 9,003 respondents.
When looking at the types of gambling activities and which may be more addictive than others, the breakdown was as such:
Activity % of problem gamblers # of gamblers # of problem gamblers
Spread betting 14.7 53 8
Betting exchanges 9.8 74 7
Online gaming 7.4 191 14
Online betting 6.0 303 18
# of gamblers and problem gamblers in hundreds of thousands
Media projections ahead of the study held that between 600,000 and 800,000 adults would be documented problem gamblers, which, invariably, would have raised concern over the direction of the country's already liberal gaming policy.
"There is now nothing to suggest that the new regime we have in place is at all inappropriate, but we still need to monitor the effects closely," Gambling Commission Chairman Peter Dean told a press conference in London.
"We remain concerned that there are still over a quarter of a million adults who are problem gamblers," Dean said. "The challenge, for us and for the industry, is to tackle this through the new licensing regime that has been put in place from September 1."
According to the study, the highest prevalence of problem gambling was found among respondents who participated in spread betting (14.7 percent), fixed odds betting terminals or FOBTs (11.2 percent) and betting exchanges (9.8 percent).
"The results perhaps place spread bettors (regulated by the Financial Services Authority rather than the Gambling Commission), FOBTs and the exchanges under the spotlight," Holliday said. "These are key areas where there could be more regulation in the not-so-distant future."
Along this line, Dean said that the commission is planning to conduct more specific research into the relationship between problem gambling behavior and individual games. He added that the current study, which the NCSR called "overdue," would be repeated between 2009 and 2010 to gauge the efficacy of the Gambling Act in relation to problem gambling.
U.K. problem gambling organization, GamCare, stated that they were delighted to see that the combined efforts of organizations like theirs and the gaming industry, with its heightened commitment to the practices of social responsibility, has led to no increase in the number of problem gamblers in the UK.
As expected, reactions across the industry were positive.
Even in the United States, the Safe and Secure Internet Gambling Initiative (SSIGI) made apt use of the findings in a prepared statement titled "Regulated Internet Gambling Does Not Lead to Increase in Problem Gambling." It remains to be seen how much weight, if any, the numbers will carry among U.S. legislators already slow in backing Massachusetts Democrat Barney Frank's Internet Gambling Regulation and Enforcement Act.
Some observers, of course, offered a different viewpoint.
Mark Griffiths, professor of gambling sudies at Nottingham Trent University, told the Daily Mail, "Problems are associated with the new forms of gambling, and those forms are expected to grow. It's not just the internet. We will see more gambling through mobile phones and interactive television."
Professor Jim Orford, of the University of Birmingham, said there is “enormous scope” for increase in gambling, particularly online betting, leading to higher addiction rates.
A Downing Street spokesman said, "While the report shows that problem gambling still affects only a small minority, it does remain a serious issue and has to be addressed."
Casino Communications,
CASINO COMMUNICATIONS
Gary Selesner has been at the helm at Caesars Palace for more than two years. He had directed expansion programs and renovation efforts, creating a property that has continued to be in demand by the “whales” in the casino business, but with one difference. The middle-market appeal of Caesars Palace has broadened substantially. Selesner explained the philosophy and background of one of gaming’s most iconic property when he met with Global Gaming Business Publisher Roger Gros at his office in Caesars Palace Las Vegas in September. To hear the full interview, which includes Selesner’s views on sports events, the Asian market and the value of his longtime employees, go to www.ggbmagazine.com, click on the podcast button and go to the archives.
Global Gaming Business : You’ve been head of Caesars Palace for a little more than two years now. Reflect on your that time and what you learned about operating one of the most recognizable hotels in the gaming industry and indeed the world.
Selesner: I feel blessed and fortunate that, at this time in my career, I have been able to work here. It’s been a dream to run this hotel and it’s an honor to have this position.
It has been a tremendous experience; very positive in almost every instance. The assignment when I was brought in was very simple. We were to merge two great companies’ mindset about how to market this property. Some people expressed fears when Harrah’s acquired Caesars that Harrah’s didn’t know the luxury business that Caesars was in. So when we came in, we came in with a soft touch, at least initially, trying to respect the great traditions that had been established here during the 41-year history of Caesars Palace. The job was to preserve the best of those traditions, especially as it pertains to the high-end product. With the best villas in town, we’ve actually been able to grow the high-end business. At the same time, we’ve been able to plug into Harrah’s expertise at slot marketing and middle marketing with the integration of the Total Rewards system. This has dramatically grown this segment of the market. We’ve managed to grow all revenue streams. We’ve managed to find that sweet spot where we continue to position the property at the high end, but also build the value of the brand.
You announced an impressive expansion over the summer, on top of some just-completed projects. Why have you decided to forge ahead so soon after the last expansion?
First of all, because the last one was so successful!
Looking down the road, there’s a lot of competition coming, especially in the luxury section of the market. In one respect, it’s a way to prepare for that competition, but also to expand and enhance Caesars Palace so it can be the flagship of the company as we grow internationally.
Explain the details of the expansion project.
Most important is the addition of the Octavius tower. This is further west on Flamingo and it will create an octagonal pathway around this property, which does not exist now. It will improve traffic flows tremendously.
At the base of that tower will be three poolside villas, which will join two other villas at the pool and six penthouse villas. We’re also renovating the Forum tower, parts of which have not be fully renovated since it opened, including the famous suite that was in the Rainman movie.
We’re also renovating the sports book, the food court and the older of the two areas of the convention center and adding 260,000 square feet of meeting space. That will give us a dramatic presence in that market.
Most visibly, we’re going to renovate the entrance to Caesars Palace, which had a very low ceiling. Much of it is iconic so we’re going to take a contemporary approach to similar designs.
Let’s talk about entertainment. Celine Dion is ending her incredible run at Caesars later this year. People forget that was a very controversial decision when this show was announced. You’ve already signed Bette Midler to take her place. What is your philosophy in regards to entertainment?
You’re right. The decision to build the Colosseum and bring in Celine was widely questioned. But it’s turned out to be very important to the repositioning of Caesars Palace and regain its place at the top of the market.
Our customers have come to expect the biggest entertainment in the world from Caesars Palace. There’s a legacy there from the days of Sinatra and the huge fights. The Colosseum was a natural extension of this legacy.
With Celine leaving, we will bring in the same big-league entertainment that our customer expect. It’s very difficult to compare someone with Celine. We think we’ve found that with Bette Midler. She’ll do a different kind of show. We expect it to be a mixture of music, comedy and variety, but still a major entertainment experience that the market demands.
With Wynn and the Venetian having properties in Macau, have you seen any drop-off in Asian business here? Or is there actually an increased desire for Las Vegas when Asian customers visit Macau?
Asian business is up. The Strip’s numbers have been propelled by baccarat. Caesars has been marketing in this area for 30 years. We have marketing offices in Hong Kong, Tokyo, Singapore and elsewhere. Macau is creating new customers every day. At some point, a lot of those customers want to come and see what Las Vegas is all about. In the last year, we’ve seen a record number of new customers coming out of that region.
Harrah’s clearly sees Caesars Palace as its flagship. Does that put any extra pressure on you to lead it in the right direction?
It makes it more fun for me. We will continue to enhance, add to and improve this property so it can be the flagship for future Caesars Palaces. It’s an awesome responsibility to be creating things that will be brands for future Caesars Palaces, so that really colors your decisions. That’s a big responsibility but I’m blessed with a tremendous management team and employees with whom I’m very proud to be working, so how could it be stressful?
People,
November GGB PEOPLE
Personnel moves ready MGM for CityCenter
MGM Mirage announced several major personnel moves and promotions throughout Las Vegas as the company readies for the 2009 opening of CityCenter. Bill McBeath was named president and COO of the new 4,000-room resort and casino at CityCenter, scheduled to open in November 2009. McBeath will also oversee the Vdara Condo Hotel at CityCenter. McBeath has served as president of Bellagio since February 2005.
Randy Morton has been named president and COO of Bellagio.
Anton Nikodemus has been promoted to president and COO of Monte Carlo Resort and Casino. Nikodemus served as senior vice president of hotel operations for Bellagio where he had executive oversight of the hotel division, food and beverage division, entertainment and engineering. In their new positions, McBeath, Morton and Nikodemus will all report to Bobby Baldwin, chief design and construction officer for MGM Mirage, and president and CEO of CityCenter. Jon Corchis was named senior vice president and chief financial officer of the resort and casino at CityCenter. Mike Longi was named vice president and chief financial officer at Bellagio. Bill Boasberg was named vice president and chief financial officer at the Mirage. Courtney Wenlender was promoted to vice president and chief financial officer at New York-New York Hotel and Casino. Greg Hinton has been named vice president of finance for Harrah’s St. Louis Casino & Hotel in Missouri. He had been regional director of planning and analysis for Las Vegas-based Harrah’s four properties in Atlantic City, New Jersey.
Foxwoods Resort Casino named Gillian Murphy, a veteran of the hotel and gambling industries, to oversee its new $700 million casino, MGM Grand at Foxwoods. Murphy will serve as senior vice president and general manager of the new property, overseeing its operations, which will include a casino, hotel tower, convention center, 4,000-seat theater, and restaurants and shopping. The MGM Grand, which will be connected to Foxwoods Resort Casino, is scheduled to open in May. Murphy was most recently vice president and assistant general manager of the Ameristar Casino in Black Hawk, Colorado.
Seneca names Hansberry CEO
Brian Hansberry has officially been named president and chief executive officer of Seneca Gaming Corporation, the gaming arm of New York’s Seneca Nation of Indians. He had held the posts on an interim basis.
Motor City's VP of hotel operations
MotorCity Casino Hotel named Randal Villareal vice president of hotel operations, effective immediately. The hotel at the MotorCity casino in Detroit, Michigan, is scheduled to open November 1. Villareal previously worked as divisional vice president of the Remington Hotel Corp. in Dallas.
PokerTek appoints new CEO
North Carolina-based PokerTek, Inc., producer of the hot PokerPro automated poker table, announced the appointment of Chris Halligan as the company's second CEO, succeeding Lou White, who co-founded the company and will now serve as vice chairman of the board.
“I'm honored and excited about this opportunity,” said Halligan, who joined the company as VP of sales and planning last year. “PokerTek has a tremendous product offering, strong strategic relationships and great people. Our products are the future of poker.”
“As our company has grown, it has become clear that we need to add accomplished professional managers to lead our company,” said White. “Chris Halligan fits that description perfectly.”
PokerTek Chairman Lyle Berman praised White’s job during his tenure as CEO, when he took the company from zero to a currently installed base of 130 PokerPro tables across the industry, a number that is growing internationally, as Aristocrat Technologies distributes the product outside the U.S.
“Lou has done a tremendous job in forming and launching PokerTek,” Berman said. “Having Chris as PokerTek’s new leader is an important step in our growth. His experience and achievements make him the right man for the next phase of our development.”
AC Coin expands sales force
AC Coin & Slot announced the hiring of a new tier of regional managers as part of a plan to strengthen customer service and support for its growing line of proprietary slot machines. The addition of three new regional managers completes a two-year initiative in which the total number of sales representatives serving AC Coin & Slot customers was doubled.
The initiative corresponds with a significant increase in demand for proprietary AC Coin & Slot bonusing slot machines, evidenced by a 79 percent increase over the past three years in the number of games simultaneously leased across the United States, and by the company's rapid expansion throughout Canada.
“The casino industry is evolving rapidly. With the introduction of new technologies and sophisticated tools for the analysis of slot product offerings, our company needs to be ready for the customer needs of today and tomorrow,” said Christopher Strano, vice president of sales and marketing. “We are only successful when our products perform well for our casino partners. Hiring experienced and educated professionals will keep our business growing and will ensure our partners consistent success with our products.”
Goods & Services,
Novomatic to launch new products
The Novomatic group’s Austrian Gaming Industries subsidiary launched several new products in its first exhibit at the SAGSE show in Buenos Aries last month.
AGI showcased two new slot cabinets and several additions to their gaming library.
“South America is a major expansion focus for us,” said AGI Managing Director Jens Halle. “We are already present in South America and have exhibited in trade shows in Peru and in Chile. The demand from customers from numerous South American countries for our innovative products has been accelerating recently, and we of course will react positively to that.
“As one of the world’s most dynamic and fastest-growing gaming regions, we believe that it is completely appropriate that our world-leading products should be featured prominently at the region’s largest trade exhibition. We have chosen to mark this special occasion by launching some key product innovations at the show, and we are confident that these will be exciting for the decision-makers from across the continent who will attend SAGSE.”
AGI demonstrated new games in its Coolfire II video slot platform, along with innovative new cabinet styles, and also is using the show to introduce South America to Flex-Link, a jackpot system from Independent Gaming Pty. Ltd. in Australia that is being distributed by AGI.
Goods & Services,
Net Entertainment signs eighth license agreement
Net Entertainment signs eighth license agreement
Net Entertainment has signed agreements with Euro Gaming Ltd. and Goldbet Sportwetten Gmhb for delivery of the company’s CasinoModule.
The CasinoModule will be implemented in the third quarter of 2007, and the companies plan to complete the integration at the group’s other sites by the end of the year.
Net Entertainment has signed eight new license agreements during 2007.
Goods & Services,
Microgaming announces game featuring the Osbournes
Casino games developer Microgaming announced its newest online slot game will feature rock legend Ozzy Osbourne and his famous dysfunctional family.
The licensing deal between Microgaming and the Osbournes will see Ozzy, Sharon, Jack and Kelly showcased in a series of graphic rich video online slots.
The game will be released for online gambler to enjoy later this year.
“I can honestly say that when I came into this business I would never has believed that one day we would be welcoming Ozzy Osbourne and his family into the fold but this goes to show how far we have come,” CEO of Microgaming, Roger Raatgever, said. “Online gaming is well and truly part of the entertainment mix and we can’t wait to launch our cutting-edge Osbourne video slots to players later this year and we promise it will be a game to remember,” he added.
Goods & Services,
China approves Dynasty mahjong software
Dynasty Gaming Inc. last month announced the government of China has approved Dynasty's play-for-points Mahjong software. The internet play-for-points version of Mahjong is now fully accessible to the approximately 100 million registered users of Sohu at its games portal, which is operated by 95Joy.
"This product approval now clears the way for Dynasty to begin generating revenue from its China strategy," said chief executive Albert Barbusci. "We are very excited about launching the Mahjong game with Sohu and our prepaid card distributor, Beijing Junnet Online E-Commerce Limited
Goods & Services,
Wells-Gardner names RGB Asia distributor
Wells-Gardner Electronics Corporation last month announced it has appointed RGB Sdn. Bhd. as its American Gaming & Electronics sales distributor and its Wells-Gardner service distributor for Macau, Singapore, Japan, Korea, Philippines, Malaysia, Cambodia, Laos, Myanmar and Vietnam.
"We are delighted to be partnering with RGB in Macau and the rest of South East Asia," said Anthony Spier, Wells-Gardner's chairman and CEO. "RGB is a well respected company in this fast growing region. They have excellent sales, service and administrative personnel and an aggressive management philosophy that is totally customer focused. They have offices in most of the countries that they serve and have nearly every major casino in the region as a customer. We expect to increase our revenue by over $1 million in the first year and to grow thereafter."
Goods & Services,
Nextep Systems develops kiosks, web site
Nextep Systems announced the completion of several self-order kiosk projects and online presence for MotorCity Casino Hotel in Detroit, Michigan.
The kiosks allow customers to order meals at three casino restaurants using a touchscreen ordering system. Guests can pay at the kiosks with player club points, cash, credit cards or coupons.
Nextep also created a web site for MotorCity’s recently expanded hotel. The site provides information about the hotel, convention center, spa and meeting facilities.
Goods & Services,
Multimedia announces tender offer results
Class II game and system supplier Multimedia Games, Inc. announced the preliminary results of its modified “Dutch Auction” tender offer to purchase up to $25 million in value of its common stock and the associated preferred share purchase rights, at a price per share not greater than $13.50 and not less than $12.25.
Based on the preliminary count by the depositary for the tender offer, approximately 2,310,492 shares were properly tendered and not withdrawn at prices at or below $12.55 per share. As such, the company expects to purchase, on an 86 percent pro rata basis, approximately 1,992,032 shares of its common stock at $12.55 per share for a total cost of approximately $25 million.
Goods & Services,
LodgeNet to provide interactive services to the Venetian
LodgeNet Entertainment Corp. has been chosen by Venetian Casino Resorts, LLC to provide interactive television for the properties owned by the Venetian in Las Vegas, including over 7,000 rooms.
The interactive TV units will be installed by the end of the year and represent the largest installation of this technology so far. Services provided include high definition on demand movies, games, programming and sports, along with TV channels.
This arrangement expands the existing one between LodgeNet and the Venetian, where earlier in the year they announced that Sioux Falls-based LodgeNet would provide 3,000 interactive TV connections for the Venetian Macao Resort Hotel.
Goods & Services,
Elixir, VendingData to supply games in Vietnam
Las Vegas-based VendingData Corporation announced that its partner, Macau’s Elixir Group, has signed an agreement to supply 200 electronic gaming machines to Lao Cai International Casino in Lao Cai, Vietnam. The joint-venture alliance of the two companies has now secured agreements for long-term placements for a total of 1,264 electronic gaming machines to be placed on a participation basis at seven venues in three markets, including 200 units in Vietnam, 614 units in the Philippines and 450 units in Cambodia, under a stock purchase and product participation agreement executed in June.
Elixir has achieved 100 percent slot floor share at each of the seven venues for which it now has agreements.
The Lao Cai International Casino is located on the banks of the Red River between Lao Cai, Vietnam and Hekou, China. The venue, which is open 24 hours a day and includes a four-star hotel, is a short walk from the border crossing with China, in the heart of Lao Cai’s commercial and business district. The 200 gaming machines are expected to be installed in the next several weeks, and will replace all of the currently installed gaming machines at the facility.
“With this new agreement, Elixir continues to demonstrate that we can leverage our extensive relationships into new market share for high-margin, recurring revenue electronic gaming machine placements in rapidly expanding Asian gaming markets, said Gordon Yuen, CEO of Elixir.
Mark Newburg, president and CEO of VendingData Corporation, added, “With agreements now for over 1,250 gaming machines, we continue to make rapid progress in our partnership with Elixir to address the gaming needs of the Asia-Pacific marketplace. This level of success places us solidly on the path to meet all of the goals we set out to achieve in our agreement with Elixir.”
Goods & Services,
Daktronics launches new LED product
Display technology supplier Daktronics Inc. announced the release of its new ProTour PT-4, modular LED video system for use in casino exterior and interior displays.
The product features four-millimeter line spacing for excellent picture detail, 22-bit image processing for exceptional video quality, a design without the need for fans for ultra-quite operation, and a high-bright, high-efficiency LED layout for superior contrast.
“We’ve developed the PT-4 as an economical solution to the high-density modular video display market,” said Jay deBlonk, Daktronics product manager. “The result is the first video system that truly provides an immediate advantage in the highly-competitive rental and staging market.”
Each PT-4 panel houses four PT-4 modules that can be removed and operated individually, or in combination, to provide a unique entertainment feature. The product also features 3-in-1 “black package” surface-mount LED display technology, 2,000 nits of calibrated brightness and a high-contrast mask coating. The outcome is superior display contrast, wide viewing angles and rich color reproduction.
Goods & Services,
CDI announces Washington sales
Software provider Casino Data Imaging announced that it has licensed the company’s CasinoCAD v. 4 business intelligence program to the Suquamish Clearwater Casino Resort and the Yakima Nation Legends Casino in the state of Washington.
“In Class II and Class III server-based markets, CDI’s technology brings multiple game server reporting under one common graphical and report-writing umbrella for data visualization and report-writing analysis,” said CDI spokesman George Levine. “With CasinoCAD, casinos can easily create queries, analyze data and make well informed decisions. We are very proud to be partnering with these exceptional casinos and look forward to providing leading-edge analysis tools, support and continued development.”
CasinoCAD enhances existing slot systems with data visualization tools and
“point and click” reporting to identify and analyze losers, trends, model saturation, par and denomination distribution, machine moves, trial games, WAP/lease products, specific groupings and much more in an instant.
Goods & Services,
Bally announces Fantasy Springs contract
Slot and system manufacturer Bally Technologies, Inc. announced that it has signed a comprehensive contract with Fantasy Springs Resort Casino near Palm Springs, California, to provide bonusing technology, a table games management solution and 2,000 iVIEW slot machine displays.
The iVIEW displays in all of the casino’s slot machines will allow Fantasy Springs to offer its players “Bally Power Winners,” a configurable random progressive jackpot technology that rewards players using their player’s club cards.
The iVIEW displays will also allow Fantasy Springs to become the first casino in the world to launch “powercash,” a patented technology that will change the way players access their funds on the casino floor.
The first product from a joint venture with Cash Systems, Inc. and Scotch Twist, powercash will work with Fantasy Springs’ Bally Power Bank technology to enable casino patrons to enroll in the casino player’s club program and to access funds from their desired credit, debit or checking accounts while sitting at the gaming device.
Players will be able to request funds from the designated financial account, transfer those funds into their player’s club account and then transfer credits down to the gaming device.
Goods & Services,
PGIC: Table iD sales pass 1,000
Progressive Gaming International Corporation announced that sales of Table iD, the industry’s leading table game management system, have passed 1,000 units in 25 North American casinos.
Company officials say there has been a high level of customer acceptance of the system’s Table Manager and Chip Manager modules, including high-speed 13.56-MHz radio frequency identification embedded in the gaming chips.
The Table iD tracking and bet recognition technology, jointly owned, developed and marketed by Progressive and International Game Technology, is an automated table game system that combines table management software and RFID chip tracking.
Progressive and IGT have secured agreements for installations of Table iD in North America from numerous large corporate customers. Nearly one-third of the installations contemplated in the current agreements addressing the North American market utilize both the player tracking and the high speed RFID bet recognition capabilities of Table iD.
Goods & Services,
Majestic Star announces contractors
Don Barden's PITG Gaming LLC announced that it has selected a joint venture between Hunt Construction Group of Scottsdale, Arizona, and Smoot Construction of Columbus, Ohio, as the prime construction contractors for most of the $450 million Majestic Star casino, to be built on the north shore of the Ohio River in Pittsburgh, Pennsylvania.
PITG says the two contractors will build the 435,000-square-foot casino building and a 3,800-space parking garage, in addition to working on site improvements and roadway work to ease traffic in the neighborhood.
Hunt Construction Group has experience building casinos in California and Indiana. Smoot is a minority-owned contractor with experience building sports facilities, convention centers and schools.
“Hunt/Smoot provides an outstanding blend of experience and capabilities that will help us complete our project on schedule and on budget,” said Sam Marshall, PITG Gaming vice president of design and construction. “We’re on a very aggressive schedule and need a construction contractor that not only will provide us with the highest quality, but also understands the rigorous requirements we’ve imposed on this project, so that we can get this casino open as quickly as possible.”
Goods & Services,
Architect to design Tinian casino
Takamatsu Architect and Associates Co. Ltd. signed on to build the $300 million casino Tinian Matua Bay Resort Project on Tinian, one of three Pacific islands making up the Commonwealth of the Northern Marianas Islands.
Takamatsu Architect and Associates will be responsible for developing master plans, coming up with the exterior design, floor plans and creating three-dimensional computer graphics of what the casino will look like.
The property will include an 18-hole golf course as a major part of the first phase of the project.
Phase I of the project also involves the construction of a 300-room hotel-casino, with 100 full suites and 200 junior suites, four full-service restaurants, a spa, wedding chapel, shopping arcade and a convention facility that will accommodate more than 600 persons.
The second phase will involve the construction of luxury bungalows and additional rooms at the hotel-casino.
Goods & Services,
Centaur hires construction contractor
Centaur, Inc., the privately held Indiana operator planning new racetrack casino operations in Indiana and Pennsylvania, announced it has hired LPCiminelli Construction Corporation to oversee construction of its racinos in both states.
Goods & Services,
Online agency lists jobs for Macau casino
All coming jobs for the under-construction City of Dreams casino in Macau will be listed with Casino Careers Online under an agreement between the Northfield, New Jersey, agency and the casino operator, Melco PBL Entertainment. The $2.2 billion casino complex is due to open in late 2009.
CCO ( www.casinocareers.com ) and its sister company, Casino Executive Search, specialize in recruiting candidates for gaming and hospitality jobs at casinos, cruise lines, regulatory agencies and gaming technology companies in the United States and other countries. CES has just been certified as a Woman Business Entity in Pennsylvania and New Jersey, a designation the company says can benefit “clients who seek vendors with such a classification.”Goods & Services,
Octavian: Deal or no deal?
The long-awaited acquisition of Octavian International by eBet appears to be off.
In a press release last month, Octavian announced that “alternatives to the proposed acquisition of Octavian by eBet are being explored.”
Octavian cited a change in the capital-raising environment as one reason for the change in plans, and did not rule out the acquisition going forward at some point in the future.
An eBet release stated to the Australian stock exchange presented similar wording.
Hans Zeidler, Octavian COO, stressed that the change in plans would have no affect on Octavian plans.
Said Zeidler, “Irrespective of the outcome of the proposed merger with eBet, Octavian will continue its global expansion plans with potential acquisitions and mergers on its own.”
Zeidler added that Octavian expects to make a number of further announcements over the coming weeks.
A second release by Octavian, following almost immediately, announced the acquisition of Las Vegas-based lottery specialist Gaming Solutions International. GSI owner and president, Mark Hutchinson, will join the Octavian team “to spearhead the company’s continued growth in lottery systems.”Goods & Services,
GLI forms South American branch
Gaming Laboratories International has formed a partnership with Argentina’s Universidad Nacional de La Plata to create GLI South America. The new GLI South America will offer both gaming device and system testing services and independent field inspection services.
It is the latest move in a campaign by GLI, the world’s largest slot testing organization, to expand internationally. Earlier this year, the organization announced the creation of its European arm with the forming of GLI Austria. With the addition of GLI South America, GLI now operates 11 offices on six continents.
“Since 2002, UNLP has continuously been working in topics related to control of slot machines and online systems,” said UNLP Director Javier Diaz. “The work we have been performing is interdisciplinary and involves working with information rated to hardware, software, communications, systems, database and processes, particularly as they relate to computer technology safety and technological auditing. This agreement with GLI is seen as a great advance, allowing us to get the highest international level of information and training for our professionals and technicians and to allow us to work with certifications and standards with worldwide validity.”
“GLI is extremely pleased to be working with UNLP,” added GLI Vice President and co-founder Paul Magno. “This is a perfect fit in many ways—technological capabilities and commitment to integrity being at the forefront. UNLP has an outstanding reputation, and we are thrilled to have them as part of the GLI family as we continue to expand our services around the globe.”
Goods & Services,
GSA, Macau school reach training deal
The Gaming Standards Association has signed a memo of understanding with the Macao Polytechnic Institute, under which the school will provide continuing education related to the very latest gaming technology and open communication standards.
Under terms of the agreement, MPI will act as GSA’s office in Asia, establishing a location for GSA on the continent. Additionally, GSA will support MPI in an effort to spread the technical knowledge of GSA’s gaming protocol standards to students in Macau and other parts of Asia through MPI.
“This is a major step forward for GSA,” said Peter DeRaedt, the organization’s president. “The industry is keenly aware of the expansion of gaming in Macau and the future development that is to come to Asia. We are very pleased to be at the forefront of that growth, laying the groundwork for what will be an intense adoption and implementation of GSA standards.”
“The partnership between MPI and GSA, which aims at fostering the adoption and implementation of open industrial standards in Macau, will certainly create benefits for manufacturers, operators and other stakeholders in the gaming industry,” added MPI President Lei Heong Lok. “Fulfilling the promise of seamless communication and interoperability, robust and long-lasting open standards can be a solution for greater revenue and decreased costs.”
Goods & Services,
Glitch idles Shuffle Master’s Macau slots
A software glitch prompted regulatory authorities in Macau to temporarily shut down 47 slot machines in Shuffle Master’s Stargames series.
After a player complained to the Macau Gaming Inspection and Coordination Bureau that a machine failed to pay a jackpot, the agency ordered all Stargames machines to be idled during an investigation. An independent investigation by Gaming Laboratories International found that a ticketing malfunction caused a win to be displayed when there was no win.
Shuffle Master last month submitted the software fix to the agency for approval. When approval is secured, all affected machines will be updated immediately by the supplier’s Macau-based technicians.
Goods & Services,
AC Coin hits milestone
Pleasantville, N.J.-based AC Coin & Slot announced a milestone last month. The supplier, which produces proprietary bonus slots using base games of International Game Technology, has passed 3,000 games in the field.
The number of AC Coin bonus slots simultaneously leased and supported throughout North America has more than doubled in the past three years, which the company attributes to a steady stream of new bonus games being introduced by the company and a renewed emphasis on customer support.
“Increasing our distribution network of leased slot machines is just one of the markers of AC Coin & Slot’s tremendous growth,” said Jerry Seelig, the company’s executive vice president and general manager. “To grow at such a pace while sustaining our longstanding relationships is only possible by progressively bringing innovative products to market and reinforcing them with the most knowledgeable, attentive support teams in the business. This is evidence of every division of our company, from our sales force to our service technicians, working together seamlessly to serve our casino partners.”
Goods & Services,
Aristocrat launches Nevada ‘Millioni$er’
Slot manufacturer Aristocrat Technologies has launched its “Millioni$er” penny wide-area progressive link in Nevada. The system, on the company’s “Hyperlink” multi-progressive platform, joins Millioni$er networks already linking 760 games in other states.
Introduced in 2004, Millioni$er places a multi-site progressive prize atop the four-level Hyperlink jackpot system. Hyperlink connects various Aristocrat base games to a common bonus game triggered randomly, which results in one of four levels of progressive prize.
Goods & Services,
Gaming Partners chips to Wynn Macau
Gaming Partners International has completed delivery of Bourgogne et Grasset gaming chips with Magellan/PGIC 13.56MHz RFID for the recently completed expansion of Wynn Macau.
A second order of VIP chips and plaques is currently in production and scheduled for delivery later this year.
Gerard Charlier, President and CEO of Gaming Partners International, said, "GPI is proud to continue to serve the needs of Wynn Macau with this re-order.
"Casinos traditionally do not commingle different brands of chips or plaques, and in the case of the Magellan/PGIC 13.56 RFID products, consistency in the production and security of each item is paramount."
Charlier added that GPI is able to "meet reorder needs to help our clients maintain acceptable levels of inventory as their gaming floors grow."
Goods & Services,
Harrah’s, Microsoft develop ‘virtual concierge’
Harrah’s Entertainment and Microsoft, Inc., are developing table-top computer designed with a touch-screen surface to be used as a “virtual concierge.” The partners will debut a prototype of the product at this month’s Global Gaming Expo.
Future technology may allow a virtual visit to Harrah’s Entertainment’s seven Las Vegas Strip properties from the concierge desk at any one of them, or to purchase tickets to a show at one Harrah’s property at the concierge desk of another.
The product is an adaptation of a “surface computer,” a device priced from $5,000 to $10,000 that can be used by multiple people at once, and can be adapted to recognize objects—like the Total Rewards player’s club card.
“We have a vision of where we want to take this technology so it will be pervasive in unique situations,” Microsoft Senior Marketing Director Mark Bolger told the website Yogonet.com. “Harrah’s certainly has a strong tradition of being visionary as it relates to the use of technology.”
Harrah’s and Microsoft began working on the technology early in 2006. In addition to its deal with Harrah’s, Microsoft is partnering with Starwood Hotels & Resorts Worldwide, T-Mobile USA and slot-maker International Game Technology on applications of surface-computer technology. IGT plans to privately show some of the concepts it has been exploring with Microsoft at the G2E show.
Goods & Services,
IGT launches online sweepstakes
Leading slot manufacturer International Game Technology is launching an online sweepstakes promotion to promote awareness of its new “Wheel of Fortune Super Spin Super Wild” game, the latest version of the famous game that features group play around a giant horizontal fortune wheel.
Starting October 1, players have been able to learn about the new game while earning entries to the Wheel of Fortune $150,000 Super Wild Sweepstakes. For eight weeks, players who log in to www.SuperWildSweepstakes.com are immediately launched into an animated sequence depicting a flight through a casino, zooming toward a carousel of the game.
The player “lands” at his own player station on the animated bank of nine machines positioned around the wheel display.
What follows is a free, simulated interactive game on Wheel of Fortune Super Spin Super Wild, with tips on playing the game popping up along the way. Playing the game earns an entry into the national sweepstakes, which will award a grand prize of $150,000, and a chance of a daily prize of a Sony Cyber-Shot digital camera. Players can enter once a day.
“We believe the $150,000 Sweepstakes will introduce a new set of players to Wheel of Fortune Super Spin, and especially to the new Super Wild version, which is like playing a whole new game,” said Ed Rogich, IGT vice president of marketing. “This sweepstakes will help us further understand what our players like and respond to, so we can make things more fun and exciting as we develop these online programs in the future.”
Goods & Services,
Densitron changes name, brand; makes deal with Videobet
Densitron Gaming Ltd., a leading supplier of imbedded computer technology to the gaming industry, is changing its name to Innocore Gaming Ltd. as of November 13. The name change will be accompanied by an image rebranding, culminating in a full re-introduction of the company at the G2E trade show in November.
“We are very excited to announce this milestone in our company’s development,” said Densitron Managing Director Edward Price. “The new name and new brand represent our evolution, and definitely usher in bigger and better things for us. We decided to announce the new name to our customers and the public at large before the official date, because we felt we wanted to emphasize the continuity aspects of our growth as much as the novelty of the new name. We have been supplying high-technology products to gaming for over 10 years now, and although the new company name will modernize the look of the company, the core of employees, products and service remains the same.”
The new name combined “inno,” for innovation, and “core,” to represent the company’s development of technologies at the core of gaming devices.
Densitron also announced that is forging a marketing alliance with Videobet, a developer of software and systems for server-supported and downloadable gaming.
The agreement designates Densitron Gaming/Innocore hardware as the exclusive hardware platform recommended and used by Videobet and its customers for its server-supported gaming system. Densitron will provide complete hardware solutions as well as making arrangements for inventory, short turnaround of orders and support for Videobet and its customers.
“We are looking forward to this collaboration, which will transform our gaming platform into the ultimate package by binding together top-performance software and highly specialized hardware,” said Videobet CEO Shmuel Weiss.
Goods & Services,
FutureLogic launches new website
FutureLogic, Inc., the leading manufacturer of thermal ticket printers for ticket-in/ticket-out slot operation, announced that it has launched a completely redesigned and enhanced website.
The new website, www.futurelogic-inc.com , is designed to help users find answers to questions quickly and easily, with major improvements in navigation and search functions, as well as content.
“Because the internet plays such an important role in our
communication and customer service strategy, we’ve re-engineered our website to ensure that our key audiences can access crucial information faster and with greater ease than ever before,” said Nick Micalizzi, sales and marketing VP at FutureLogic.
The user-friendly interface lets users perform a text search on the entire site, and other enhanced features make it easier to navigate major website categories. Market-specific product information also is available, to help site visitors narrow their searches.
Goods & Services,
Shuffle Master, Progressive finally ink deal
After weeks of delays, Shuffle Master Inc. (SHFL) and Progressive Gaming Inc. (PGIC) signed a deal that sells all the table game products owned by PGIC to Shuffle Master. SHFL
will also use PGIC’s Casino Jackpot Systems software on its tables.
SHFL will pay out $30 million in total: $19.8 million upon closing, a $3 million advance to integrate PGIC’s software system with SHFL tables, and annual earn-out payments through 2016.
PGIC said it had received a fairness letter from Roth Capital Partners estimating the net present value of the deal at $37.4 million to $46.5 million.
Analysts say the deal is good for both companies. PGIC will dramatically reduce its debt, while SHFL strengthened its hand by now controlling 80 percent of the world’s specialty table market.
PokerBIZ,
Betdirect launches new poker software
Online gaming company Betdirect has revamped its website and launched new online poker software that comes with a number of new features and a new look designed to ease the way users navigate through the site’s pages.
The new Microgaming-powered software is available to download for free and offers low-stakes and even some free games that will enable new poker players to practice before joining cash games or tournaments. It also has a range of new characteristics that makes finding and enjoying the right poker games easier than before.
Betdirect is also developing an online poker community where members can chat with each other and contact the Betdirect poker team with questions and for playing tips.
PokerBIZ,
IRS and casino industry reach happy compromise
An Internal Revenue Service proposal requiring casinos to hold 25 percent of poker tournament winnings in excess of $5,000 has been nixed, ending a month of fearful speculation about the repercussions of the policy.
After some negotiations between the IRS and representatives of the casino industry, including the American Gaming Association, a compromise was reached. Casinos will be required to report tournament winnings in excess of $5,000 on a W-2G form. Players will still be responsible for paying taxes on their winnings, but the casinos will not be required to withhold those taxes.
It’s a similar situation to other taxing policies associated with other casino winnings like slot and video poker machines jackpots in excess of $1,200.
In situations where players refuse to provide personal information necessary to complete the tax forms, the casinos will be obligated to withhold taxes immediately. If the casino does not withhold taxes or the player cannot be found, the IRS could come after the casino for the tax owed.
AGA lobbyist Wally Chalmers said the industry is happy to avoid the onerous requirement of withholding winnings, players are happy because it can help preserve their bankrolls until tax time, and the IRS benefits through the creation of a paper trail on more players who cash in tournaments.
PokerBIZ,
Poker goes to school
The Faxt That the popularity of poker has spread to the collegiate levels is not surprising. All one has to do is look at Jeff Madsen, who used money from his college fund to pay entry fees at the 2007 World Series of Poker in Las Vegas, and won two bracelets at the event.
Phil Hellmuth, Jr., also got his start playing poker at the
Poker clubs are now popping up at universities throughout the world, and plans are in the works for a national collegiate team poker tournament.
The clubs are part of the Global Poker Strategic Thinking Society, which was organized by students at
“Poker teaches many lessons that are transferable to the challenges of life, including strategic understanding of risk, resource management and self control,” Nesson said.
“When to hold ‘em, when to fold ‘em, as the song says,” he added, referring to Kenny Rogers’ “The Gambler.”
Following on the heels of the organization of the Harvard club,
“The level of student response to our announcement of GPSTS is overwhelming,” Nesson said. “Many people agree that poker itself, besides being fun, has an academic component that can bring great benefits to learning at all levels.”
School-versus-school competitions will start in November, when the Harvard and Yale clubs compete the night before the Harvard-Yale football game; later in the month, USC and UCLA will compete the night before their football teams square off.
An intercollegiate tournament is being planned for spring, during which universities throughout the country will compete to crown a collegiate poker team champion.
But the GPSTS is about more than just playing poker. The organization will also schedule panels to discuss various issues facing the game today.
The first panel was held October 15, and featured poker pros Crandall Addington and Lederer discussing how poker skills can be used in everyday decision-making. The next day, GPSTS members met at Harvard to discuss the ongoing dispute between the
In 2008, the group plans to hold a poker educational workshop at a charter school for at-risk youth in
PokerBIZ,
WSOP dates announced
The 39th World Series of Poker in
The 2008 tournament will once again be held at the Rio All-Suite Hotel and Casino. Dates for specific events have not been released, but tournament officials said people wanting to make travel plans have requested information on when the tournament will start and end.
“The team is still hard at work on the schedule of events for next year, but we’ve received so many requests for the dates that we decided to announce them now,” said Jeffrey Pollack, WSOP commissioner.
The tournament room will open May 26 for two special events, and to give players a chance to register early for various tournament events.
“This soft opening will give players a chance to register early and avoid the lines we had last year during opening weekend—our busiest time,” said Geno Iafrate, vice president of assistant general manager of the
PokerBIZ,
West Virginia preps for poker
In anticipation of poker coming to
Officials from the West Virginia Lottery Commission observed practices and play during the two days of poker.
“This gives employees time to practice,” said lottery commission spokeswoman Nancy Bulla. “Moreover, for our purpose, it gives the lottery an opportunity to be certain security and operational guidelines, under the rules and regulations, have all the i’s dotted and the t’s crossed.”
The
Other games like blackjack, craps and roulette were also legalized, but because they are more complicated to operate and monitor, casino officials do not expect to have those games operational for another two months.
PokerBIZ,
Pennsylvania poker test
A legal battle in
Westmoreland County Attorney Larry Burns is accused of operating for-profit poker tournaments, which state officials contend is prohibited by the Pennsylvania Constitution. The case has not yet to trial, but the prosecution, led by District Attorney John Peck, has scored an early victory.
A court denied Burns’ motion to release more than $11,000 seized during state police raids of his home, along with tournament records and other documents.
Burns was able to secure the return of $2,000 in cash seized from his bedroom, and he also obtained an order from a judge prohibiting Peck from using the word “gambling” to describe the poker tournaments.
Burns does not deny the allegations that he ran for-profit poker tournaments. His contention is that because poker is a game of skill and not chance, it is not illegal under state law.
Peck disagrees.
“Whether you win or lose, it’s based essentially in the cards you are dealt, and that’s by chance,” Peck said. “It meets the definition of gambling.”
At the heart of the case against Burns is whether poker qualifies as a game of skill or a game of chance. The final ruling could ultimately determine the legality of poker tournaments though out the state. If Burns is acquitted—a decision which would likely be appealed to the highest court in the state—the ruling could clear the way for anyone in the state to operate poker tournaments.
PokerBIZ,
WPT looks to expand player experience
WPT Enterprises announced two five-year deals with the Amateur Poker League and Classic Gaming Cruises that will strengthen the company’s brand and create new World Poker Tour experiences for fans.
The deal with the Amateur Poker League provides opportunities for amateur players to qualify for a seat in the professional level tournaments. Through the agreement, the Amateur Poker League and the WPT will create the World Poker Tour Amateur Poker League.
The five-year agreement covers tournaments in the
The deal with Classic Gaming Cruises established WPT Cruises, which will officially launch its inaugural cruise in February from
Frankly Speaking,
TV Jitters
I just got off the phone with someone from ABC, who wanted to know about slots.
Yes, that’s right. When Diane Sawyer or Katie Couric want to know about slots, who do you think they call?
Okay, it wasn’t Diane Sawyer who called me, but it was ABC—Al Bernstein’s Cable—wanting to know about a good time slot to come to my house and hook up HBO.
No, seriously, it was the ABC you know, although I’m not familiar with the reporter. They were asking me about the story from last year where some woman in New Mexico sued a casino because she claimed she had won $1.6 million on a nickel slot, but was told that it was a machine malfunction. It turns out some kind of ticket with a test number on it apparently came out of the printer, but the top jackpot on the machine itself was $1,500.
But that’s not what my column’s about—I already busted on that lady. (“New guaranteed slot strategy: Just say you won!”)
No, apparently, they may want me “on-camera” for this story they’re doing about slot machines. I’ve done a lot of local TV spots, and a little Travel Channel and other cable stuff, but this is national.
The thought of my cartoon-like face beamed into the homes of millions makes me just a little frightened. Of course, others like me. For instance, Players Network asked me to be their resident “Slot Guru.” I love that—it conjures images of people climbing up a Himalayan mountain, and inserting their player’s club card into a slot for a chance to ask a slot-machine question of the “Guru.”
Player: “O great Slot Guru! What hath the mysterious god of the Random Number Generator wrought when it comes to gaming that is controlled by a Holy Central Server?”
(Don’t you talk in Old English when you’re with a guru? I could be wrong.)
Guru: “Noble Player, the Holy Central Server is… Hey, bread pudding!”
OK, the Slot Guru was apparently at a buffet in my little fantasy. But anyway, I digress…
I’m fine going on Players Network, because only people who play in casinos will be watching. (And, of course, players who have blown all their money in the casino and are sitting in their hotel rooms like losers. Not that I’ve ever done that.) It was the same with the Travel Channel things I did. Casino fans were the ones watching. And, local Atlantic City news and talk shows are, well, local. In those instances, I only have to worry about coming off like an idiot in one metropolitan region.
But ABC? National, coast-to-coast TV? Geez, every boss I’ve ever had could be watching. Relatives I like and don’t like. People I pissed off 20 years ago. Bullies who tortured me as a kid. (Although I like to think they’re all dead or in prison by now.)
What if I draw a blank? What if I sit there with beads of sweat on my forehead, in a catatonic, drooling state after every question? What if I have spinach on my teeth? What if I forget to wear pants?
And what about my appearance? The first time I saw myself on TV, I said, “Hey, look! There’s my dad!” (In the mirror, I still look 25.)
And what about my voice? I always thought I sounded like a manly, he-man baritone until the first time I did a radio interview, and heard my voice coming across the airwaves. It sounded like Bugs Bunny on helium.
Of course, the segment is about slot machines, which I can talk about in my sleep (and often do, according to my wife). I just have to focus on the questions and draw on my 23 years of experience writing about the things, and not think about Ralph Kramden.
Why not think about Ralph? Because I’m always afraid when I go on TV that I’m going to stammer like he used to on the old Honeymooners show when he was nervous:
Comely ABC News Anchor: “Frank, is it possible for this slot machine to pay out $1.6 million?”
Frank:
“Humm-a-na-humm-a-na-humm-a-na.”
News Anchor: “I don’t think our microphones picked that up. Can you repeat it?’
Frank:
“HUMMa-na. Aaah… Ummm… Hey, bread pudding!”
Podcast Q & A,
Q & A with Phil Hogen
Since Phil Hogen was installed as chairman of the National Indian Gaming Commission in late 2002, it has been his goal to draw a “bright line” between Class II gaming machines and their Class III cousins. As technology advanced, manufacturers were able to push the envelope over what was considered Class II gaming. The traditional bingo cards disappeared into the insides of a slot machine and it has become difficult to tell the two classes apart. Hogen explains how the process began, the hurdles it surmounted and what the proposed rules will look like in broad terms. The ruling will impact gaming machine manufacturers, Indian gaming establishments—both Class II and Class III—and even the international market, where Class II machines are beginning to proliferate. Global Gaming Business Publisher Roger Gros spoke with him from his office in Washington, D.C. just days before the regs were published in the Federal Register. To hear the full version of this podcast, go to the Global Gaming Business website (www.ggbmagazine.com), click on the GGB Podcast button and go to the archives.
Global Gaming Business: You’ve worked diligently throughout your term to come to some understanding on what Class II game is all about, both technologically and the spirit of the law. Explain how these proposed regulations help to define that.
Hogen: We have finally a comprehensive set of proposed regulations that will draw a bright line between equipment that they can use while conducting un-compacted Class II gaming and those that they use when conducting gaming under a tribal-state Class III compact. We’ve done this by drafting a set of regulations, publishing them in the Federal Register, and we are now awaiting the industry’s further comment to see if we can finalize them.
When and why did this become an issue?
I first served on the NIGC starting in 1994 until late 1999. Midway through that journey, the Multimedia company came out with its Megamania game linked jackpot game. There were some concerns about that system. I was in discussions with them and the Department of Justice about the challenge this system created for the Johnson Act, which long said you can’t have gambling devices in Indian Country. IGRA came along and said slot machines were OK as long as you had a Class III tribal-state compact. But it also said you could play Class II games with computers and technological aids. The issue was if these interconnected bingo player stations fit into the Class II category.
When I came back to the commission in 2002, the issue had only become more complicated. The former commission did a little work on it but basically left it up to the next commission.
Since 2003, a great deal of our time has been taken up with this.
Your goal is to create this line?
Yes, the Indian gaming industry and related manufacturers are very concerned with this. There is a difference between Class II and Class III and there’s a clear way to ascertain which side of the line the equipment falls. Once we’ve completed this process, the industry can build to the specifications and the tribes can invest with full confidence that these machines will be legal.
Some tribes have wondered why even bother changing the rules, when they’ve worked fine, at least in these tribes’ opinions, up until now and these interconnected player stations have been out there for so long.
That’s the problem. We’re not changing the rules, there simply were no rules. There has been this need to finalize these rules for all these years and we’re just trying to get there.
In 2004, we assembled a tribal advisory committee to assist us. We asked tribes to nominate the best and the brightest from both those who regulate and those who operate these devices. We met often and long with this committee. They have helped us right the federal regulations that will draw this bright line between the two types of devices.
During the public meetings held to comment on the proposed regulations, there were many tribes and manufacturers who were very critical of the regulations and the process. Do you think what you’ve done here will satisfy those critics?
Those people who were telling us that we’d bring the Class II industry to its knees by slowing down the play dramatically should be happy because we’ve dramatically changed that. We did weigh the economic impact of any regulation we proposed and found that it would be too dramatic a change to require such a long time to play the game.
We also included a grandfather clause. We know the tribes have invested heavily in the equipment that’s out there. We’re proposing that when these rules become final, that if the devices that are on the floor now meet certain minimum requirements—they don’t have to meet all the requirements, just the minimum—they can be played for five years, which we have determined to be the useful life of equipment like this. This will soften the economic impact greatly, in our view.
And if history is any guide, manufacturers will soon be coming out with faster machines that are more fun to play that meet these regulations, making it essential that casinos remain competitive with each other.
So what’s the next step in getting these regulations approved?
We expect we’ll hear from tribes, states, folks that build the machines, folks that test the machines and interested consumers.
We’ll then decide if we’re going to go forward with this at all and if so, do we change it as a result of any of the comments that are submitted.
If we make changes, we’ll explain why we did so in the final publication in the Federal Register.
How long would you expect this to take?
There’s a 45-day comment period, and many of those comments will come in on the 45th day, human nature being what it is. We’ll take a while to get through those. We’ve taken some much care so far, we’re not going to get hasty and rush through the process. We’ll consider everything very carefully.
We’ll save our congratulations for when the process if finally completed.
Nutshell,
CALENDAR
November 13-15: Global Gaming Expo (G2E), Las Vegas Convention Center, Las Vegas. Produced by the American Gaming Association and Reed Expositions. For more information, www.globalgamingexpo.com. Contact Kim Leon, kleon@globalgamingexpo.com or 1-203-840-5870.
November 30-December 1: World Poker Congress, Westin Dragonara Resort, St. Julian's, Malta. Produced by River City Group and Global Gaming Business. For more information, www.worldpokercongress.com. Contact Dawn Kirkwood
dawn@rivercitygroup.com or call 1-636-946-0820.
January 12-15: 13th Annual Western Indian Gaming Conference, Palm Springs Convention Center, Palm Springs, California. Produced by California Nations Indian Gaming Association. For more information, www.cniga.com/wigc08. Contact Vicki Meadows vicki@cniga.com or call 1-916-448-8706.
January 14-16: 11th Annual Southwestern Indian Gaming Conference & Expo. Radisson Fort McDowell, Scottsdale, Arizona. Produced by Buss
Nutshell,
THEY SAID IT...
“Our turnaround strategy has always been to identify our better customers and market to them. It’s to try to get the company away from depending on the day-trip gambler as opposed to someone who wants to come for a two- or three-day entertainment experience.”
—Trump Entertainment CEO Mark Juliano, on the company’s strategy to turn the fortunes around for its three Atlantic City casinos
“Asia will contribute the most to growth of the global gaming industry, and market share here is important for gaming companies and for Las Vegas Sands. Las Vegas Sands’ casinos in the U.S. are cash cows and will help fund its Asian expansion.”
—Poh Huay Imm, an equity specialist at Deutsche Bank's private wealth management group, on Las Vegas Sands’ future in Macau
“This slots issue is the legislative version of eternal life. It’s always on life support, but it never dies.”
—
Baltimore Sun columnist C. Fraser Smith, on Maryland Governor Martin O’Malley’s campaign to push the legislature into passing a bill to legalize slots in the state after several failures by the former administration
“Well I certainly do not know of another alternative that will create 3,500 jobs, receive £250m of investment and get two million visitors, unless we have missed it.”
—Sir Howard Bernstein, chief executive of Manchester City council, speaking about Prime Minister Gor
“It doesn’t make a lot of sense. They’re trying to increase revenues in casinos, and at the same time they’re cutting back on smoking.”
—Tom Swoik, executive director of the Illinois Casino Gaming Association, commenting on state lawmakers possibly expanding gaming just before a January smoking ban could cut casino play
“Our own people are the enemy. That’s never happened before.”
—Quechan tribal elder Preston Arrow-Weed on the divisiveness being caused by a planned October 17 vote on changing the site where the tribal council wants to build a casino near Yuma, Arizona, despite archaeological finds there
“If there’s a connection to gambling and a conviction, that’s somebody we
—Mississippi Gaming Commission Director Gene McNary on the addition to the state’s black book of people convicted of crimes that are casino-related, but have no impact on the integrity of gaming in the state.
“The online gambling industry jumped the red light at the cross roads and got stuck in the round about and is not sure how to exit.
The industry needs to have strong leadership.
It needs to pull together successfully and move forward towards regulation and leadership.”
—Former BetonSports CEO David Carruthers—now under house arrest at a hotel in St. Louis—speaking via teleconference at the EiG online gambling conference in Barcelona
“We really underestimated just how many people would go there. It has sort of knocked our socks off.”
—Barry Snyder Sr., Seneca Gaming Corp. chairman, commenting on the 90,000 players the temporary, 124-slot Seneca Buffalo Creek casino has drew during its first two months in Buffalo, New York
“We’ve seen this movie before and nothing has happened. Right now, there is no proposed legislation and the House has historically shown no inclination to approve casino gambling.”
Cutting Edge,
Modular Solution
PRODUCT: Alfa Solution
MANUFACTURER: Alfastreet Gaming Instruments
The “Alfa Solution” is a modular setup that combines any of Alfastreet’s terminals—the TT table-top terminal, the SL and SG stand-alone terminals, the M8 modular terminal—into a network on the gaming floor that can link to various live or electronic games of automated roulette, the Alfastreet Live roulette wheel, Alfastreet’s Dice Sic Bo or the live keno game.
The concept permits operators to create a combined electronic table game area with different games, rather than dedicating each area to a single game. Each terminal has four different applications available. Casinos can pick the games that best suits their needs, creating versatility with a large number of possible game combinations.
For more information, visit Alfastreet at Booth #2391.Cutting Edge,
Modular Control
PRODUCT: Casino Management Software
MANUFACTURER: Octavian International
Octavian’s casino management software package, consisting of the GateManager and CashManager modules, is a powerful, easy-to-use system that enables casinos to effectively manage customer data, rapidly and securely check visitors to a venue, oversee all financial transactions and run targeted and measurable marketing campaigns.
Octavian’s package provides an open, modular system developed to meet the needs of casino operators in highly regulated gaming markets. The system enables operators and staff to maintain a high level of control over player registration and entry, player tracking, cashier management and accounting.
In addition, the two software modules offer transparent control of bonuses and complimentaries, harnessed to the most comprehensive data exploitation tools for setting up, running and measuring marketing campaigns to casino customers.
The software is suitable for all sizes of casino, for tables and slots or slots only. The modules can be customized to the casino’s needs, and provide a scalable solution for future growth.
For more information, visit Octavian at Booth #2213.
Cutting Edge,
Future on Deck
PRODUCT: Programmable Buttons
MANUFACTURER: Coin Mechanisms, Gamesman Ltd.
Coin Mechanisms, and its partner, Gamesman Ltd., will debut their advanced Programmable Player Interface at G2E 2007. The PPI is a programmable slot machine button deck ideal for server-based slots and interactive fixed-odds betting terminals. The PPI can be configured as required by the manufacturer and the application. Traditional fixed-legend buttons can be combined with programmable buttons to meet the needs of any application and any budget.
Programmable buttons feature high-resolution, wide-viewing-angle OLED displays. Two sizes are available, 1.1-inch (96 x 64) and 1.6-inch (128 x 65), both in yellow monochrome. New in 2007 is a programmable feature button with a full-color 2.7-inch (320 x 240) LCD display.
Programmable buttons support animations at a rate of 12 frames per second. The LCD button can support full motion video. All programmable buttons offer the option of programmable LED lighting effects in the button bezel, either RGB (red/green/blue) or single-color. Each button is a stand-alone smart button that utilizes a USB connection to a USB hub in the host machine. This allows for easy scalability and maximum design flexibility. A more custom option is to use a master bus backplane communicating with the host machine by a choice of USB, RS232, or other serial protocol as may be specified. All programmable buttons can receive real-time downloads to active displays or periodic downloads to on-board memory.
Programmable buttons are available from Coin Mechanisms in North America and Gamesman Ltd in Europe and
For more information, visit Coin Mechanisms at Booth #3732.
Cutting Edge,
RFID Accounting
PRODUCT: Easitrax SC
MANUFACTURER: MEI
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Dateline,
DATELINE... TRIBAL november 2007
The permanent Seneca Buffalo Creek Casino complex in downtown Buffalo, New York, will have a 22-story all-suites hotel adjoining a 90,000-square-foot gaming floor for 2,000 slot machines and 45 table games, the Seneca Nation announced last month. Adding the hotel, a spa and four restaurants to the original plan brings the project cost to $333 million, up from the initial $125 million projection.
Although lawsuits challenging federal designation of the nine-acre Buffalo Creek site as tribal land are still in court, “This project is the result of vision, dedication and a willingness to invest,” says Barry Snyder Sr., president of Seneca Gaming Corporation. The casino is due to open in early 2010—early estimates said 2009—with the 206 hotel suites ready by midyear.
The expanded final design by Sosh Architects of New York City was motivated by Seneca’s success with its casino-hotels in Salamanca and Niagara Falls and unexpectedly good business at its 124-slot temporary casino in Buffalo. Buffalo Creek is the third and last casino allowed under Seneca’s New York gaming compact.
The hotel, clad in metallic material, will be capped with a huge video screen displaying interior images and marketing messages. Three acres of the site will be devoted to a park and an artificial “Buffalo Creek.”
National Indian Gaming Commission Vice Chairman Chuck Choney will step down at the end of the year, ending more than 35 years of public service—five as part of the NIGC, six in the U.S. Army and 26 years as a special agent with the Federal Bureau of Investigation.
“Chuck Choney brought maturity, leadership and a keen understanding of Indian and tribal traditions and values, a solid judgment to the commission,” said Chairman Phil Hogen. “His service here raised respect for the commission and for integrity in the Indian gaming industry. His participation on the commission will sorely be missed.”
Choney was instrumental in the formation of the Indian Gaming Working Group, which was formed in 2003 to enhance cooperation with federal agencies and to coordinate their roles and functions with respect to potential crimes throughout the Indian gaming industry. Crime in Indian gaming was Choney’s specialty, and he helped to develop benchmarks for law enforcement involvement over criminal acts taking place at Indian casinos. Prior to the establishment of those benchmarks, some felony acts went unpunished.
“Now when an Indian gaming officials discover criminal activity being committed on their property, they know it will be properly addressed,” said Choney, “
Appeals court chips away at tribal sovereignty
A February decision by the U.S. Court of Appeals for the District of Columbia ruled that tribal casinos are subject to federal labor laws, and some speculate, could begin a general rollback of tribal sovereignty by the courts.
In issuing the decision the court said, “Tribal sovereignty is not absolute autonomy permitting a tribe to operate in a commercial capacity without legal restraint.”
The court ruled that the casino owned by the San Manuel Indians near Palm Springs, California is not part of the government operation of the tribe, is just another business, and therefore not protected by sovereign immunity. That opens up the casinos, and any Indian casinos within the appeals court’s jurisdiction to unionization of the workforce. Coincidentally, that same issue is the main sticking point in several gaming compacts that were signed by Governor Arnold Schwarzenegger but have been mired for more than a year in the legislature.
Some legal experts predict that the decision could eventually end tribal sovereignty, something that many feel the U.S. Supreme Court is hostile to. Courts could find that more federal statutes apply to tribes, and incrementally chip away at the idea that Indian tribes are, as they hold, virtually independent nations.
The lawsuit that sparked the decision was filed by The Hotel Employees and Restaurant Employees International Union, which was denied the right to organize while one of its rivals was not. During the course of the case the court ruled that the tribal casino is subject to national labor laws.
The reason some feel this will begin to chip away at sovereignty is that the has turned over a previously accepted concept that state and federal laws apply to tribes only when Congress specifically states that it does. The court ruled the opposite: that the assumption is that state and federal laws apply unless Congress specifically exempts tribes.
The court noted that most visitors and even employees of casinos are not members of the tribe and concluded that a casino is not an integral part of the tribal government—merely a revenue source.
Florida compact in the cards?
Prospects of some Class III card games being allowed at the Seminole tribe’s seven Florida casinos are among the latest sticking points in prolonged gaming-compact negotiations between the tribe and Governor Charlie Crist. The final compact may appear by October 15, the new deadline the U.S. Interior Department set last month before it might step in to allow slot machines and other casino games without a state agreement.
Dan Adkins, chief gaming executive of Mardi Gras Gaming in Hallandale Beach, says he will “be at the courthouse in a heartbeat” to challenge the governor over any compact that allows the tribe blackjack, baccarat or other games parimutuels like his are not allowed under state law.
Slot machines, however, are the prime element in compact negotiation. Seminole wants them to replace the bingo machines it has run for years. Racetracks and jai alai frontons are allowed slot machines under a 2004 state law if local voters approve them, but not the electronic roulette and craps games a recent draft of the compact allows Seminole.
That’s another reason Adkins wants “a level playing field. Let’s do it right the first time and include everyone in this pact,” he says. He may find support from other operators, citizens groups and the state legislature if a final compact appears this month. All are expected to tie up the compact for years with suits or other action.Columns, Slot Technology,
SBG: Technology versus Content
Have you ever heard a slot customer say, “Where’s the latest new technology? I can’t wait to put my hard-earned money into that server-based gaming thingy?”
My guess is that the average slot customer could care less about the latest technology. All she wants is to play her lucky game, have a little fun, and maybe win some money. So what’s all the fuss about server-based gaming, and what is really going to get this train out of the station? This will be the third G2E that we’ve seen server-based gaming touted as “this year’s big product.”
Server-based gaming could be one of the most powerful drivers for the slot machine industry since the hopper. It has the potential to improve customer service, enhance security and controls, and overwhelm us with marketing and statistical data. But more importantly for the players and for the industry, it can expand the quality and creativity of our slot content. That is where the real payday lives, and that is what will ultimately be the most compelling force for acceptance.
There are five players at this table, but one of them will ultimately pay for it all—the casinos, the suppliers, the stockholders, the regulators and, oh yeah, the customer (that would be the one with all the money). The casino wants all the money from the customers, the suppliers want to be the one to provide the products that help the casinos get all the money from the customers, Wall Street wants to make a bunch of money off the suppliers making the money, the regulators want to make sure that nobody gets any money without them knowing about it, and the customers just want to have a good time.
Therein lies the problem. Everybody is getting excited about it except the customers. They may like it, they may even want it, but they just don’t know why yet.
The “hype” got in front of the cart a little bit on this one. The technology is pretty complicated, especially when you add in an evolving regulatory landscape. We don’t just have ourselves to please when satisfying our thirst for innovation, gigabytes, download speed, and connectivity.
When “money” is the product, everybody in the food chain pays more attention to the details. Although some of us would love to go out and buy a boat load of iPhones, hand them out to our nation of gadget-primed gamers and stream the latest multi-hand poker product down into their wallets, our path is more circuitous. Dungeons, dragons, and gaming regulators.
It is very tough to get a slot machine product approved, and that’s a good thing. There is nothing more important for our industry than protecting the integrity and fairness of our products. We have to ensure at all cost that our customers know they have a fair shot at winning every time.
When explaining to the uninitiated who complain about how far behind the technology curve we are, I just say, “Yeah, but can your iPhone work after being hit with 40,000 volts of electricity from a cattle prod and not drop your call or lose your contact information?”
That’s exactly what a slot machine, and slot systems like download servers, are expected to do. Literally. They are expected to work every time, flawlessly, no matter what. That takes a little more time than ordering your new computer from
Apple.com.
So, a few years ago when Wall Street started going crazy about how server-based gaming was going to take over the planet, I smiled. It is amusing to me how some become so eager to build a success story to move the stock price that we forget how complicated the engineering and approval process is and, most importantly, what we should really be focusing on:
how we improve the quality of the players’ gaming experience.
But what does that mean exactly?
Our customers want to have fun and maybe win a little money. Even if you could explain to the player about all the benefits of server-based technology—access to hundreds of game titles quickly, intuitive download of game preference, enhanced player rating and bonusing, faster upgrades of software, better security—you would probably get a blank stare.
If the player doesn’t have fun playing the game, the games won’t drive higher revenue and SBG will be a technology with no place to go. It is hard to justify the cost of this kind of technology on operational savings alone. Remember how long it took slot accounting and ticket-in/ticket-out systems to take hold?
TITO technology was first introduced in the 1980s. Operators loved the idea of getting rid of all those nasty coins and expensive coin handling, but the players didn’t want it. Players loved their coins. There was little benefit to them for giving up something they liked and were used to, just so the casino could save money. So, the tests at places like the Desert Inn and MGM in the early ’90s failed.
It took another six years for the multi-coin video slot with a penny denomination to drive customer acceptance. It was entertaining to watch unfold. The customers finally embraced the technology because it solved a problem for them. They loved their penny slots, but they were a pain in the butt.
You see, the penny slots kept emptying the hoppers because it took too many pennies to make a cash-out. This caused a lot of hand-pays and a lot of unhappy customers. Suddenly, TITO had real value to the player. It made playing a fun game more enjoyable.
So what is server-based gaming’s “tipping point?”
In a word, content. Our world is now wired in just about every way imaginable, and people are becoming comfortable with being connected. They are starting to embrace it and even look for it in all aspects of their lives. As a player, if you give me a good math model and excite me with a way to play with others, or somehow participate in a shared gaming space, I’m all in.
Tournaments, progressives, shared bonuses and poker all lend themselves to networked play. This is one way of moving server-based gaming from an interesting technology to a money-maker for the casinos. My bet is that at this year’s G2E you will see a lot of great, creative ideas with this theme. But be patient. With most really cool new games that you see at the show, there is another 12 to 24 months before you see them fully deployed in the market. And, my guess is that new regulations will have to be written or modified for these new and very creative games to be approved.
For example: Pong. The addition of a little skill (dexterity) required some special attention by the
This has got to be one of the most exciting times to be a part of the slot machine industry. If we work together and keep the architecture open, giving access to an even broader set of talented developers, it will truly be a “tipping point” for server-based gaming.
This new technology affords us much potential to shake up our world and expand what we think of as gambling entertainment. But remember, the technology is only the vehicle, not the destination. Now it is time for game developers to get busy.
Columns, AGA,
Internet Action
Here in Washington, and in a number of states with early primaries, we are in the midst of an extremely long 2008 election cycle that has overshadowed virtually all other activity on the political landscape. Control of the White House and Congress is on the line, and jockeying for political advantage in Washington will be the order of the day from now until the first Tuesday in Nov. next year. This greatly elevates the odds against bipartisanship in Congress, where, in fact, inter-party cooperation has been in short supply for years.
Despite this apparent stalemate, there is one issue on the Hill that affects our industry that surprisingly has members of both political parties talking to each other—internet gambling. As most readers of Global Gaming Business know, the Unlawful internet Gambling Enforcement Act (UIGEA) was enacted in 2006, and requires banks and credit card companies to block electronic transactions to illegal internet gambling businesses, and prohibits the use of checks to fund internet gambling accounts.
Just a few weeks ago, the U.S. Treasury and Federal Reserve issued proposed regulations to implement UIGEA, with comments due on December 12. Initial reviews of these regulations reveal that various loopholes appear to exist, opened by granting exemptions to domestic institutions for transactions with online bill paying, check collection and wire transfer systems, unless these institutions have a direct customer relationship with an illegal online gambling site. Since it is expected that only foreign financial institutions would have customer relationships with the illegal Internet gambling business, UIGEA would not apply to domestic financial institutions for many of the relevant transactions. Given this situation, it will be interesting to see how the comment process plays out.
In Congress, the passage of the UIGEA has attracted attention from a number of lawmakers on both sides of the aisle who would like to see changes in the law. Among them is Rep. Barney Frank (D-Massachusetts), who introduced the Internet Gambling Regulation and Enforcement Act earlier this year. This proposal would, at the federal level, license, legalize and regulate most forms of internet gambling in the United States. It does not repeal UIGEA, but would create a regulatory structure around the existing laws governing internet gambling. A companion bill introduced by Rep. Jim McDermott (D-Washington) calls for a federal tax of legalized gambling in the U.S. States or tribal lands where online gambling is illegal—or where state laws are passed to make it illegal—could opt out of the legislation.
Rep. Frank has said he will not move forward with his bill until it has 50 co-sponsors—there are 38 now—and he is relying on interest groups like the Poker Players Alliance to get co-sponsors. The American Gaming Association (AGA) has not taken a formal position on this bill, but the legislation is not without its complications since it would introduce a federal presence into the U.S. gambling industry. Individual states have zealously opposed this in the past—considering any federal profile an intrusion on the sovereign right of each state to make decisions related to permitting and regulating gambling.
A third bill was introduced by Robert Wexler (D-Florida) and is a carve-out from UIGEA and the Wire Act for poker, which he describes as a game of skill, not chance. The bill, strongly supported by the Poker Players Alliance, has 16 co-sponsors and was referred to committee, but no action has been taken.
Finally, there is the Internet Gambling Study Act introduced by Representatives Shelly Berkley and Jon Porter from Nevada, and supported by the AGA. This bill calls for a comprehensive study of the issue to be conducted by the National Academy of Sciences to help determine the best way for the U.S. to deal with the growth of internet gambling.
This study could evaluate whether legalization, regulation and taxation—on a state-option basis—may be a more viable option than a complete ban on internet gambling, and would result in recommendations to Congress on the best way to handle the issue. Currently, this bill has 64 co-sponsors.
If I were a betting man, I would put my money on the internet study proposal introduced by Representatives Berkley and Porter to be the only one of the four to pass. At press time, hearings had been scheduled on the bill, but passage likely won't happen before later next year.
The wild card in this situation is the recent WTO decision that the existence of the Interstate Horse Racing Act puts the United States in violation of the General Agreement on Tariffs and Trade (GATT). This decision stemmed from a trade dispute between the United States and Antigua and Barbuda.
Antigua and Barbuda have leveled a $3.4 billion claim against the United States for damages. The European Union, India, Japan, Australia, Canada, Costa Rica, Macao and CARICOM—representing 15 Caribbean nations—are also seeking compensation. This conflict is still playing out, and the stakes continue to rise. There is the potential that this situation, more than any other, could force some form of congressional action on the internet gambling issue.
Internet gambling will be front and center at the Global Gaming Expo (G2E) 2007, which is just around the corner on November 13-15 in Las Vegas. Wednesday's spotlight keynote event will bring together Shelley Berkley; former Senator Alfonse D'Amato, chairman of the Poker Players Alliance; Terry Lanni, chairman and CEO of MGM Mirage; Gary Loveman, chairman, CEO and president of Harrah's Entertainment; and Andre Wilsenach, CEO of Alderney Gambling Control Commission to share their perspectives on current legislative and regulatory approaches and what the future may hold for online gambling.
Dateline,
DATELINE... ONLINE november 2007
Suitors eye PartyGaming
Earnings down, analysts eye U.S. gaming takeover
Earnings down, analysts eye U.S. gaming takeover
Will there be a “Bellagio” online casino if MGM Mirage buys PartyGaming?
While first-half earnings for online gaming firm PartyGaming were down considerably with the loss of its U.S. customers, CEO Mitch Garber said he was open to takeover talks from major U.S. gaming companies. While he did not confirm that talks were ongoing, analysts suggested that MGM Mirage was the focus of the talks.
“ Online gaming is currently prohibited in the U.S.,” said one analyst. “PartyGaming, however, is listed in the U.K. where E.U. legislation allows online gaming. It gives the casinos direct online access to the U.K. market.”
The company reported earnings of just $36.9 million for the first six months of 2007, compared to earnings of $380 million in the same period in 2006.
The company is also still in talks with officials at the U.S. Department of Justice to avoid possible prosecution for accepting wagers from U.S. customers.
Garber said talks were going well and it appears the end is in sight.
“I don’t know how long talks with U.S. will go on,” he said. “I can look at NETeller that took months not years, so if I judge from what I’ve seen then it’s months, but I don’t know.”
To replace its lost business from the U.S., the PartyGaming is looking to enter Russia and China.
“We will launch some very meaningful partnerships with large companies that will bring us other revenue streams,” Garber said. “We’ll do deals with either new media companies or companies that license brands... whitelabelling and revenue sharing.”
Experts are not sure the company will be able to deliver the growth expected, even with the new markets.
“Everything is sort of in-line after the profits warning,” said Arbuthnot analyst Paul Leyland. “The big question is can they deliver 50 percent EBITDA growth in 2008 as the market is expecting and I see nothing in these results to suggest they can.”
Norway looks at online ban
Early reports coming out of Norway suggest that culture Minister Trond Griske is looking to craft legislation similar to the Unlawful Internet Gambling Enforcement Act in the U.S.
Several online gambling news sites report that Griske will introduce the legislation in spring.
While early reports suggest the motivation for the ban will be to protect problem gamblers and possible underage gamblers—just like the justification in the U.S.—some theorize that that legislation is being pushed to protect the state gambling monopoly Norske Tipping.
In 2006, Griske worked hard to ban all land slot machines except those controlled by the state monopoly. As a result all the slot machines in Norway are now government-run by Norske Tipping.
U.S. calls compensation claims exaggerated
The United States is calling compensation claims being put forward by the European Union in the ongoing debate over the U.S. ban on online gaming exaggerated.
Lawyers for online gaming companies in the EU are asking for as much as $100 billion in compensation. While an unnamed U.S. trade official refused to disclose how much trade partners are demanding in compensation, she did say that, “numbers being put forward are based on faulty and exaggerated assumptions.”
Online gaming operators say the $100 billion is fair because it accounts for lost business, as well as drops in market values of their publicly traded firms.
Antigua and Barbuda, who brought the first successful complaint against the U.S. at the World Trade Organization, is asking for compensation in the form of violating $3.4 billion worth of U.S. intellectual property—namely suspending copyright protections on American movies, music and computer software.
The U.S. maintains its position that it never intended its free trade agreements to allow foreign online casino operators access to the U.S. market. In pursuing a clarification to its obligations specifically exempting online gaming, the country is opening itself up to compensation claims from trading partners.
U.S. officials are currently holding the line that because they didn’t plan on internet gambling being included in their obligations, no compensation is owed. The WTO has ruled against the U.S., noting that several countries asked for and received exemptions applying to online operators. Furthermore, the WTO allows countries to exempt foreign online casino operators from its free trade agreements if it also prohibits domestic companies from similar practices. The Unlawful Internet Gambling Enforcement Act allows U.S. companies to accept online wagers on horse racing, while prohibiting foreign companies from the same activities.
Operators opt for responsibility
A new code of conduct for online gaming operators was introduced at the recent European Interactive Gaming Congress (EiG) in Barcelona.
The code is the result of a collaborative effort by the Remote Gambling Association (RGA), problem gambling treatment agency GamCare, and regulatory advice group eCogra. The intent of the creators is to establish a single code of conduct that will ensure operators of online gaming are adhering to certain standards.
Said Andrew Poole, MD of GamCare Trade Services, "Technically, this is not out of the reach of any operator."
In fact, it was stated that most operators are already at the suggested level of responsibility, or beyond.
The goal of the group is to have the finalized code accepted by licensing jurisdictions, who would then apply its standards to those seeking licenses.
Columns, Jefferies Wall Street,
Macau Momentum
In early October the markets in stocks related to
We think investor concerns were way overblown and that the market is continuing to follow a track that will lead it to a total market size of over $15 billion by the end of 2010 (a level that we would expect any investor should be happy with).
The methodology of our forecast model is capacity driven and we expect that capacity gains will help drive sizable revenue gains, however at a large gap between the two numbers as it will take time for the revenues to catch up with the new property openings. As word of mouth and publicity for the "new
Given that, the gap between capacity growth and revenue growth should narrow over time. That gap was 5,937 basis points in 2006, narrowed to 3,650 in the first half of 2007 and we are looking for it to narrow to 3,413 in 2007, 2,940 in 2008, 2,607 in 2009 and 1,378 in 2010. It should be noted that the narrowing of the gap is a function not only of increased visitation, but decreasing percentage increases in capacity additions.
Dateline,
DATELINE... ASIA november 2007
Crown OKs new hotel in Melbourne
Crown Melbourne, the PBL subsidiary that owns and operates the Crown Entertainment Complex, has announced the addition of a third hotel. When completed, the as yet unnamed hotel will be the largest in Australia.
The new build will join the existing, business-oriented Crown Promenade and the luxury market Crown Towers hotels. The Crown Towers will receive an upgrade and the Crown Casino will see a refurbishment of its main gaming floor, it was also announced.
The A$300 million (US$266.2 million) hotel will add 658 rooms to the Complex, bringing the total of rooms available there to more than 1,600. The hotel will target the international leisure traveler, with an added focus on conferences and conventions.
Construction is expected to begin in October, with the hotel becoming operational in May 2010.
The upgrade to the Crown Towers Hotel is estimated at A$65 million. The casino main floor refurbishment, which will also incorporate new venues for live entertainment and restaurants, will cost an additional A$100 million.
Taiwan to wait on casinos
Ho Mei-yueh, chairwoman of Taiwan’s Council for Economic Planning and Development (CEPD), has announced that the country will not be welcoming a casino industry in the near term, “due to the absence of relevant legal framework and a lack of public consensus.”
The Chairwoman revealed the information in response to a question from opposition legislator Chiang Yi-hsiung, of the Kuomintang (KMT) party, during a legislative committee meeting.
Ho commented that other countries integrate the casino industry into general leisure development and do not promote it separately. She said that the gambling industry requires a sound legal environment and a special institution for its oversight.
Relevant government agencies will be discussing how to minimize any negative effects of a casino industry at some point in the future.
Ho did say that the government will first launch a sports lottery and then seek public input on the casino issue, after people become more familiar with foreign sporting events.
Tabcorp may lose NSW casino monopoly
Tabcorp is in talks with the state government of New South Wales that might see the Australian company lose its right to be the sole casino operator locally.
In exchange for giving up that right, Tabcorp reportedly would receive a lower tax rate on gaming revenue. The state treasury department wants to raise the gaming tax from 24.5 percent to 30 percent.
The 12-year-old license was set to expire this month, but the state has agreed to a second month of extension while negotiations continue.
The Walker-hill Casino in the Sheraton Hotel in Seoul, South Korea
South Korea looks to compete
The city government of Seoul wants to move the South Korean capital’s three existing casinos to new locations that could handle larger structures and more business. The three casinos are at present housed within the Sheraton Walkerhill Grande Hotel, the Millennium Seoul Hilton, and the Oakwood Premier Coex Center.
The casinos are only open to foreigners. As other countries in the region are expanding or introducing casino gaming, Seoul officials are worried they will lose tourists to competing cities.
Complicating the picture and perhaps spurring the move is the fact that new casino licenses can only be granted here if there is a 600,000 person increase in foreign visitors in a given year.
Private equity in Macau
Europe-based private equity firm Permira is increasing its planned acquisition of Galaxy Entertainment Group to a full 20 percent of the company.
On the heels of the announcement it was purchasing 452 million shares from Galaxy shareholder K.Wah International Holdings (KWIH) for HK$3.8 billion , the diverse Permira said it would acquire an additional 323 million shares from Galaxy for HK$2.7 billion. Total value of the two deals is HK$6.5 billion, about US$840 million.
Permira serves as advisor to the 19 Permira Funds, which have collectively raised an amount equal to €22 billion since 1985. The funds have invested in over 180 transactions in over 15 different countries, in businesses as diverse as home pizza delivery to luxury yacht building to satellite communications.
In the casino and gaming sector, Permira is one of three equal partners in the Gala Group of the U.K. Gala is the third largest U.K. casino operator, as well as the leader in bingo clubs and third again in betting offices.
Permira has a reputation for hands-on involvement, establishing working relationships between its funds and the management teams of the companies in which they invest. The company is expected to establish itself in Hong Kong in the first half of 2008. Martin Clarke and Guido Paolo Gamucci, two of the partners in Permira, will join the board of Galaxy as non-executive directors.
Galaxy for its part will issue another 150 million new shares to sell to institutional investors at around HK$8.60 per share. When the dust clears, the chairman of Galaxy and KWIH, Dr. Che-woo Lui, and his family will hold 52 percent of Galaxy.
Said Lui of the new partner, “Permira can help us develop our retail, tourism businesses. We can share our experience.”
Nutshell,
November NUTSHELL
Harrah’s Entertainment announced major plans for its Grand Casino Resort Tunica in Mississippi. In addition to a $45 million renovation of the property, Harrah’s will change the name to Harrah’s Casino Tunica, and add celebrity chef Paula Deen’s name to a new, 560-seat buffet on the second floor of the property. The new buffet is scheduled to open in May 2008, the same time the Harrah’s will unveil the re-branded casino. “This $45 million investment at our largest property in Tunica, the third largest gaming market in the United States, is further proof that Harrah’s Entertainment is committed to continue to enhance our network of branded properties around the world,” said John Payne, central division president, Harrah’s Entertainment. The Paula Deen buffet will start the transformation of the second floor of the property into an entertainment promenade, with three retail outlets and three restaurants. As part of the overhaul of the property, Harrah’s will add new beds, carpeting and furniture to its existing rooms. The room makeovers are scheduled to finish in May. A second hotel tower currently under construction will open in September. • The Elixir Group has secured contracts for 500 and 200 machines to be placed in two locations in Manila. That brings to 2,894 the number of electronic gaming machines to be placed on long-term, participation basis across fourteen venues throughout Asia, including 1,764 in the Philippines. Together with another 200 machines to be placed at the Macau Club in Phnom Phen, Cambodia, Elixir now has agreements to place 3,294 electronic gaming machines on a long-term participation basis. • The demise of gaming monopolies in E.U. countries could mean a 23 percent increase in the European gaming market, to $117 billion, according to a report by U.K.-based Global Betting & Gaming Consultants. The head of the European Commission, Charlie McCreevy, is said to be committed to breaking up gambling monopolies within E.U. members. • Plans for first-ever Kansas casinos lend urgency to the Missouri Gaming Commission’s latest of many repeated recommendations that the Missouri legislature abolish the $500 loss limit on two-hour gambling sessions at state casinos, says commission chief Gene McNary. Kansans account for 35 percent of Kansas City, Missouri, gamblers, and they will play near home to avoid the inconvenient limit, he says. He expects the latest repeal recommendation to fail in the 2008 legislature because that’s an election year. • Ralph W. Sturges, the most influential man in the recent history of the Mohegan tribe, passed away last month at the age of 88. Sturges led the tribe through the federal recognition process, and later through the development of the Mohegan Sun, one of the largest casinos in the U.S. “We will miss his leadership, and his passing leaves a void not easily filled,” said Bruce “Two Dogs” Bozsum, chairman of the tribe. • Churchill Downs Inc. celebrated the opening of a temporary slot facility at its Fair Grounds Race Course in New Orleans last month. The facility brings almost 250 machines to the track. The opening comes after a more than 10-year struggle to bring the machines to the track. Track President Randy Soth said company officials were pleased with the initial business, and announced that a permanent facility with up to 700 machines will open late next year. Track officials do not have revenue projections at this time. • Nassau County Executive Thomas Suozzi told a hearing of the New York Senate’s Committee on Racing, Gaming and Wagering that he and other area politicians support slot machines at the Belmont Park racetrack on Long Island if nearby communities share revenues. Governor Eliot Spitzer favors slots at New York City’s Aqueduct track and is open to a Belmont Park racino, but needs the state legislature’s concurrence to open them under operating agreements that may be completed within the next few weeks. Assembly Speaker Sheldon Silver, who represents a New York City district, has said he opposes Belmont slots. • Centaur Inc ., based in Indiana, has been granted Pennsylvania’s final harness racing license, to build a track at Bedford Downs in Mahoning Township. Construction will be done in phases, with the first phase to begin next summer. Reports are that a temporary casino will be built first The racino complex is expected to open in July of 2009. Development of acreage adjacent to the complex is expected to include dining, a hotel, and a water park and retail stores. • Oklahoma's oldest racing facility and first pari-mutuel racetrack, Blue Ribbon Downs, is for sale, according to the Choctaw Nation, which bought the racetrack four years ago. The asking price for the racetrack was not disclosed, although a spokesman for the Choctaws said that the price was negotiable. The spokesman discounted rumors that the racetrack was about to be closed and that employees were going to be laid off. The racetrack is not located on reservation territory. • Las Vegas Sands is reportedly seeking a record S5 billion loan ($3.3 billion) to fund construction of its first Singapore casino project. Unidentified sources say the eight banks involved in arranging the loan are Goldman, Morgan Stanley, Merrill Lynch, Lehman, Citigroup, and local institutions DBS, Oversea-Chinese Banking and United Overseas Bank. • The Broadwater Casino development in Biloxi, Mississippi, could be back on the table with developers saying they’ve got a potential partner lined up. Michael Cox, representing the property’s owners, told the Biloxi Planning Commission last month that the owners expect to sign an agreement with an international entertainment corporation to develop the entire property. The Planning Commission approved an 18-month extension of preliminary site plans, which call for a 261-acre development consisting of two casinos, condotels, entertainment venues, a golf course and homes. The project is expected to cost $1 billion.
Dateline,
DATELINE... EUROPE november 2007
Poker Power
First ‘poker-only’ club OK’d in U.K.
The Dusk Till Dawn poker club has received its operating license from the Nottingham Magistrates Court.
In his verdict, the chairman of the Betting and Gaming Committee said, “I can safely say that if you had come to us with the intention of obtaining a full gaming license we would have denied it… However, as you wish to open a poker only club, we feel there is demand for the facilities you offer. As such we will issue you a license with the condition that only poker can be played there and no slot machines will be allowed.”
This case is one of the last of its kind, as it was heard under the rules of the Gambling Act of 1968. Under 1968 Act rules, it was possible for a club to apply for a limited gaming license, which prohibited a club from operating slot machines, for example. But now, the 2005 Act converts all licenses granted under 1968 Act rules to full gaming licenses—which means, technically, that the DTD card club could apply to operate slots, and which was also one of the objections put forward by those opposed to the license.
Fighting the club since last April were casino operators Gala, London Clubs International and Stanley’s. At the final hearing, held September 24-26, LCI withdrew its objection within the first 10 minutes. Gala and Stanley’s continued to battle, arguing there was “insufficient demand” and that the club was not financially viable.
Rob Yong, DTD managing director, said, “I am absolutely delighted as are all my team at the news. It’s been a lot of hard work these last two years but we’ve cleared the final hurdle and we can look ahead to opening later this year, making DTD the best poker club in Europe.”
When the club officially opens it will be one of Europe’s largest poker venues, with 45 tables, a dedicated high-limit room and a broadcast-ready, final table area for tournaments.
Said Yong, “Though we did consider having slot machines at the club we have now reconsidered and despite the conditions not being legally binding we will abide by them as a sign of good faith.”
If DTD management sticks to its agreement to refrain from operating slots, the court’s decision to grant the license could prove to be an evolutionary step in British gaming law.
New casino for Romania
Queenco Leisure International has finalized the terms of its concession agreement with the municipality of Constanta, in Romania. The casino operator has obtained the rights to renovate a historic building dating from 1909 and operate it as “Casino Constanta.”
The agreement is for an initial period of 49 years, with an option to extend the terms for another 24 years. QLI will invest approximately €10 million and pay gross annual royalties of €140,000 to the municipality.
Constanta has a population of 310,000 and is the main Romanian port, the largest on the Black Sea. Constanta is also the most popular destination for summer holidays in Romania for both the national and the international market.
The casino will open in the second half of 2009. Plans call for 24 tables and 250 slot machines. The casino will also feature restaurants and entertainment facilities. The new Constanta casino will be the company’s fourth property and second in Romania. Queenco also recently increased its stake in Casino Loutraki, in Greece, from 35.7 percent to 40.3 percent.
Step by step in southeastern Europe
Casino development continues to move forward in the now independent nations that once comprised Yugoslavia. In a region still on the road to full economic development and integration into mainstream Europe, casino operators and regulatory bodies must deal with situations typical of both present and past.
A smoking ban might not be the first obstacle to profit that springs to mind in this environment, but at Slovenia’s Casino Portoroz, this past August saw a significant drop in revenues from slots and electronic multiplayer games. Portoroz board President Marjan Bolka attributes the lower take to the smoking ban introduced nationwide on August 5, which allows smoking only in areas where employees will not be exposed to secondhand smoke.
To counter the effect, the casino will set up special smoking areas, which have to meet strict technical standards and may not occupy more than 20 percent of the total space. Just for good measure, the casino will also add 60 new slots.
Meanwhile, new construction was recently announced that will see a casino as part of an entertainment complex in the Bosnian capital of Sarajevo. The Grand Media Center is planned for the center of the once grand city devastated by war in the early 1990s. The investor is Alpha Baumanagement of Austria and its partner Hypo Alpe Adria Consultants of Bosnia-Herzegovina.
Besides the casino, the project will include hotels, shopping, entertainment, and what will be the largest meeting center in the Balkans. The timeline for completion is three years. Total investment will be around 170 million Bosnian marks, or $123 million.
And finally, the Grand Casino Belgrade project will be completed in December of this year. The €60 million casino-hotel, jointly owned by Casinos Austria International, Casino Loutraki and the Serbian Lottery, opened some facilities this past summer and is the first international-style casino to operate in Serbia.
Belgians not amused
The Belgian Gaming Commission has filed a complaint with the Brussels prosecutor’s office, claiming that online betting operator Unibet is breaking the law by taking wagers on when the new government will be formed. Belgians may only bet on sports and horseracing.
Belgium has been without a government for the last 100 days, the result of the latest falling out between the French-speaking and Dutch-speaking halves of the country. This is not the first time the government has fallen due to conflict directly related to the two cultures having to share one nation.
Unibet was offering 25-to-1 odds on a new government being formed before October 1, with odd of 2.5-to-1 for after December 1, 2007.
Players can also bet on who will be next prime minister. No wager is available on whether Belgium will survive as a country.
Dateline,
DATELINE... UNITED STATES nov 2007
Gaming’s M&Ms - Maryland and Massachusetts head down the gaming path
Maryland Governor Martin O’Malley (pictured) has proposed slots at racetracks to save the state’s racing industry, while Massachusetts Governor Deval Patrick proposed a trio of commercial casinos for his state to raise millions for the state and create 20,000 jobs.
The dominos continue to fall in the eastern part of the U.S.
Responding to difficult budget environments and evidence that state residents are playing elsewhere, the governors of Massachusetts and Maryland last month proposed legislation that would legalize gaming in their states.
Standing in the paddock of a horse breeding farm, Maryland Governor Martin O’Malley last month proposed legalizing slot machines at state racetracks in order to save the state’s racing industry, and also, by the way, to close some of a $1.7 billion state budget shortfall.
O’Malley’s plan would permit up to 9,500 slot machines—all owned by the state—at various locations throughout the state, mostly at racetracks. When fully operational, the governor expects it to generate up to $550 million for the state each year. He will designate $100 million of that to the tracks and $6 million to problem gambling treatment programs.
In Massachusetts, Governor Deval Patrick broke a summer of silence to propose three casino resorts, one in the state’s southeast corner, one in the west and a third in Boston.
The casinos, said the governor, would put $400 million into the treasury and generate 20,000 jobs. But he emphasized that he doesn’t want to transform “Massachusetts into Las Vegas.”
The money, from a 27 percent tax rate and the sale of casino licenses, would go for roads, infrastructure and property tax relief. At least 2.5 percent would be earmarked for public health, including battling gambling addiction. It would also fund Patrick’s dream projects, like the world’s largest stem cell bank and expanded commuter rail. It is considered by many politicians to be the last revenue source besides raising taxes.
Licenses, good for 10 years, would be sold for $200 million. Casinos could open within five years, according to estimates.
Fiscal desperation seemed to be the principal reason behind the proposals in each state,
In Maryland, O’Malley is not the first governor to support slots. His predecessor, Robert Ehrlich, also supported slot parlors in the state but his proposals were shot down by a Democrat-controlled legislature. O’Malley, also a Democrat, believes he has the power to move the plan through the legislature.
“What we have tried to do from the first days of our administration is restore a spirit of civility and the ability to search for compromise and consensus," O'Malley said. "Certainly we're all talked out on this, aren't we? I don't think there's a single other issue to be debated or considered."
O’Malley’s main opponent is House Speaker Michael E. Busch, who spearheaded the defeat of Ehrlich’s proposals. Busch doesn’t much like O’Malley’s plans either.
"My position on gambling has not changed,'' Busch said in a statement. "I am not an advocate for slot machines. I don't think we can expect Marylanders to step up to the plate and pay $2 billion in taxes while unjustly enriching racetrack owners.'
Massachusetts is also facing a huge budget crunch and the hundreds of millions of dollars in revenue that would be gained by approving the three casinos apparently convinced the previously anti-gaming Patrick.
Some economists feel that high price of the licenses could shut out many potential developers and possibly cap the casinos’ economic benefits.
Critics say that the governor relied heavily on gaming moguls such as Donald Trump, Charles Sarkis, owner of Wonderland Greyhound Park, Sheldon Adelson, CEO of Las Vegas Sands Corp. and representatives of Indian gaming tribes to provide information for the economic assessment of the benefits of casinos. These same people will bid for casino licenses.
Others who interested are Harrah’s Entertainment Inc., whose chairman, Gary Loveman, hails from Massachusetts, Steve Wynn and MGM Mirage.
Like Maryland, however, Patrick faces opposition.
State Representative Daniel Bosley announced, "I am profoundly disappointed in this governor. There really isn't new revenue here. It just gives him cover to spend more money.” Casinos make it harder for other businesses to operate near them, he alleges.
House Speaker Salvatore DiMasi’s office announced himself willing to look at Patrick’s proposals before taking a position.
Another senator commented, "Most of these developers are nothing more than glorified snake oil salesmen.”
In both states, studies have shown that residents are leaving the state in droves to gamble in casinos in neighboring states.
In Massachusetts, residents head to Connecticut’s two casinos, Foxwoods and the Mohegan Sun. A third of their customers are from Massachusetts. But many gaming experts feel that the region’s market is nowhere near saturation, although their profits have remained flat in recent years.
Maryland tracks have been under attack from surrounding states. Delaware and West Virginia have had slots since the late 1990s and Pennsylvania recently legalized the devices. A recent study by the Maryland Department of Labor, Licensing and Regulation showed that Marylanders were spending at least $400 million on slots in Delaware and West Virginia alone. That translates to more than $150 million for programs in those states funded by slot revenue.
"It is time to find consensus that allows our racing industry and horse-related agriculture to compete on a level playing field with the states around us," O'Malley said. "And it's time to stop sending dollars out of the state of Maryland, and instead keep them here."
O’Malley’s plan is the only option left for the state to close the budget gap, he says. There is no “Plan B” should this fail in the legislature.
Senate President Thomas V. Mike Miller Jr. vows to get it through his chamber, but Republican leaders vowed to block it.
Gaming tax hike proposed in Nevada - A Nevada teachers group announced plans to push for a ballot initiative that would rely on the state’s gaming industry to improve funding for public education programs and increase teacher salaries.
The proposal from the Nevada State Education Association would add another 3 percent tax on gambling revenues at casinos grossing more than $1 million a month. It would bring their total tax to 9.75 percent, and generate more than $200 million a year.
“There is nothing more important than increasing educators’ salaries, benefits and improving their working conditions as well as the learning conditions of students,” said Lynn Warne, NSEA president. “We have chosen to stand to make a difference and we will not quietly submit to the idea that there is nothing we can do.”
The proposal would need voter support in 2008 and 2010 before it would take effect.
Lynn Warne, president of the Nevada State Education Association, said polls show overwhelming support for the union’s petition to amend the state constitution.
Warne said that the increase is modest compared to casino taxes in other parts of the U.S., saying, “We think 9.75 percent is fair when they are paying a 53 percent gaming tax in Pennsylvania. When you look at the national average tax for casinos, it’s about 20 percent.”
Not surprisingly, the state’s gaming industry does not support the proposed tax increase. Bill Bible, president of the Nevada Gaming Association, pointed out the obvious: “If you raise taxes you reduce investment and the amount of jobs that are created as a result of that investment.”
Bible criticized the proposal for targeting only one industry. He added that gaming funds nearly 33 percent of public education in Nevada. Bible also said that the resorts agree with the teachers on the need for quality education, but added, “The problem with this particular proposal is that it targets one industry... and doesn’t bring other payers to the table.”
Senate Majority Leader Bill Raggio thinks the legislature should be the only one to approve a tax increase. He does not support using a ballot initiative to impose higher taxes on any industries.
“Targeting a single tax source for a single spending purpose is not a responsible approach,” Raggio said.
Eastern Front - MGM Mirage announces mega-development in Atlantic City, opens permanent Detroit casino
MGM Mirage last month shifted its attention from the massive CityCenter project and joint ventures with Kerzner International and Dubai World in Macau to debut the permanent MGM Grand Detroit and announce the MGM Grand Atlantic City.
The opening of the permanent casino comes eight years after MGM Grand Detroit debuted its temporary casino, which closed its doors one day in advance of the grand opening of the permanent facility. MGM Grand Detroit will be one of three permanent casinos to operate in the city of Detroit once the MotorCity Casino and Greektown Casino permanent complexes open later this year, and next year, respectively.
At its grand opening press conference. Jim Murren, president and COO of MGM Mirage, the parent company of MGM Grand Detroit, pointed out that his company has created 3,000 permanent jobs, invested $800 million into its permanent casino and previously spent $200 million on its temporary casino for a total capital investment of over $1 billion in Detroit. He said that it has been his company’s goal to broaden the awareness of Detroit to the people of Cleveland, Chicago, and across the Midwest and East Coast. He thanked the thousands of construction workers, hundreds of businesses that worked on the construction of the MGM Grand Detroit, and the dedicated MGM Grand team members for bringing the permanent complex to fruition.
MGM Grand Atlantic City is a $5 billion project that will occupy 60 of 72 acres set aside for the project alongside the Borgata, which is a MGM Mirage joint venture with Boyd Gaming, the operator. Along with the city’s biggest casino (280,000 square feet), MGM Grand AC will include three hotel towers holding more than 3,000 rooms and suites (one tower, a 57-story skyscraper, will become the tallest building in the state), retail, entertainment and convention facilities.
The $5 billion price tag does not include the value of the land. Unlike CityCenter in Las Vegas, there currently is no residential or condominium component to the project, but may be added at a later time on the extra 12 acres.
MGM Mirage Chairman and CEO Terry Lanni says he expects the project to create “very healthy returns” for company shareholders.
“"We believe the success at Borgata demonstrates the eagerness for further evolution of the nation's second-largest gaming market," Lanni said. "We will continue to raise the bar, and by doing so, hope to re-energize the city's resorts offering.”
Company officials say the announcement of the Atlantic City development is completely unrelated to an ongoing investigation by the New Jersey Division of Gaming Enforcement into the business relationship between Pansy Ho and her father, Stanley Ho, who for many years controlled all gambling in Macau. Ho’s connections to the organized crime triads have long been suspected, but Pansy Ho denies there is any business relationship between her and her father. Regulators in Nevada and Mississippi have found there to be no reason to reject the MGM joint venture with Pansy. Should New Jersey turn down the arrangement, however, MGM officials have suggested they would abandon New Jersey in favor of Macau.
MGM Mirage plans to file for city and state approvals toward the end of 2007 and early 2008, with groundbreaking scheduled for mid-2008. Completion is set for 2012.
Columns, The Agenda,
International Exposure
There’s a reason part of the name of the this magazine is “global.” When we first published Global Gaming Business in 2002, we recognized that the casino industry was truly worldwide. Since that time, the international aspect of the gaming industry has grown by leaps and bounds, and we’re trying to stay ahead of the developments.
Just in the last two months, I’ve visited two continents: Asia and South America. And there are no two regions in the world where gaming is growing more quickly.
Take the case for Asia. We all know the Macau story: little gaming backwater outside of Hong Kong, reclaimed by China in 2000, casino licenses expanded, casino construction explodes resulting in a booming economy.
But, of course, it doesn’t stop there. Singapore last year completed a very deliberate, rational and complete bidding process for two licenses. With Sands Las Vegas and Genting chosen as the two developers, the leaders of Singapore have guaranteed that their nation will remain competitive in the tourism landscape that is Asia.
Singapore has set the bar high for the other nations in Asia hoping to join the roll of gaming jurisdictions. Taiwan is also taking a deliberative process and hoping to reach a consensus on how to move forward. Japan is also beginning its preliminary examinations on how to join the gaming industry, again, using a process that will be inclusive of all possible participants. Thailand also seems on the verge of legalization, although nothing has yet been mentioned officially.
In South America, several governments have begun to recognize that gaming can be more than simply a grey area activity that can generate taxes, infrastructure improvement, jobs and all the things that more developed companies have understood for years. Chile, Peru, Mexico and other countries are slowly expanding their gaming industries, while even mature markets like Argentina and Panama are making changes that permit expansion of existing facilties and construction of new ones.
The excitement of casino entertainment is becoming a recognized, viable industry all around the world. The objections to gaming are falling like dominos as people understand that the vast majority of people enjoy the activity and there are few negative consequences in jurisdictions where regulations are reasonable, taxes are fair and the approach to the industry is enlightened.
This month in Las Vegas, G2E will demonstrate just how the international sector is growing. Many more exhibitors and attendees will travel to Las Vegas than ever before to attend G2E and learn about the products, services and information that will be on display on the exhibit floor and in the corridors of the conference.
At Global Gaming Business, we are committed to offering you the best information on how gaming is developing around the world. We’ll explain the legal and political realities in countries where gaming exists or is being contemplated. We’ll discuss the structure and potential for the industry on different continents. And we’ll provide solid information that will make your job easier and more understandable.
And remember, Global Gaming Business is much more than just a monthly magazine. Global Gaming Business Weekly is the way to keep up to date every Monday when you’ll find the newsletter on your desktop in a printable PDF format. Global Gaming Business Weekly puts you on the cutting edge of gaming information.
And our quarterly supplements—Tribal Government Gaming, Casino Design, G2E Preview and our new RD&E: Retail Dining and Entertainment—provide you with the in-depth information you need to make decisions in a variety of special niches of the gaming industry.
So join us on our trips around the world and keep up with what’s new in the gaming industry—all under the Global Gaming Business umbrella. And