Casino Life November 2015

November 2015

Innovative StyleGroupe JOA

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n o V o m a T i C – W i n n i n G T e C h n o l o G y

2015_135_CasLif_NOVOSTAR II.indd 1 08.10.15 19:29

Glyn ThomasEditor in Chief

Editorial:

Editor in Chief: Glyn ThomasMob: +380 952 705 596

[email protected]

Features Editor:Damien Connelly

[email protected]

Associate Editor Asia: Bill [email protected]

Associate Editor North AmericaDavid Mckee

[email protected]

Special AssignmentCorrespondent:

Jack [email protected]

UK: Alan [email protected]

International Casino & GamingCorrespondent:

JJ [email protected]

Technology Correspondent:Rebecca Green

[email protected]

Production:Designer: Stewart Hyde

[email protected]

Subscriptions: Helen [email protected]

Web & IT: Sudip [email protected]

Publisher: Peter WhiteTel: +44 (0) 1892 740869

Mob: +44 (0) 7973 [email protected]

Welcome to Casino Life...I’m writing this en route to Macau for MGS that promises to be bigger, better, brighter, etc., than last year. In 2014, I only managed G2E Asia so it will be good to compare how MGS stacks up. I already hear rumours that just like the old days of the “two shows in Vegas” one will inevitably have to cede as manufacturers count the cost of involvement. Time will tell.

Back in Ukraine we had our hands full with the Game ON conference which proved successful and a lot of Western delegates had their eyes opened by just how vibrant and beautiful Kyiv is as a City. The event has woken a lot of people up – not least the Government who were reluctant to attend du to imminent elections but have since opened more dialogue into how the International community can play it’s part in building a robust gaming legislation from scratch. To formalize this a Ukraine Gaming Association has been formed – more at www.ukraingamingassociation.com.

Back to this issue and Ukraine politicians should be inspired to pop into a JOA casino if they want to see how a proper casino works. Laurent Lassiaz, CEO of Groupe JOA, talks through the company’s philosophies, talks about their best games and discusses the acquisition of Casino de Besançon with Damien Connelly. David McKee interviews Jim Simms and Seth Schorr who are striving to create the casino of the future at the Downtown Grand. Read it and you too will pick up on the energy of something different being created. Electronic sports competitions? Now that has got legs - and I’m in.

Casino Life was the only gaming magazine represented at the opening of Resorts World Birmingham – and it was a very special night. Peter White reports back on the first new resorts casino in the UK for a generation.

Interblock get name checks throughout this edition – plus an interview with John Connelly, Chief Executive Officer at Interblock courtesy of Jack Bulavsky. Meanwhile, one of the stars of the G2E show was Alfastreets Royal Derby. Slick and retro-cool I thought it stood out as a great product and David McKee talked to Ana Zlender to find out more. Someone else who was retro cool at G2E were the Cammegh brothers. Andrew Cammegh talks to Rebecca Green about a very successful G2E 2015.

Meanwhile, as we wave goodbye to Sabby Gill its timely that Paul Sculpher provides a two-way look at how casino managers need to be prepared to receive senior managers from outside of the industry – and that casino management skills also transfer outside of the industry – food for thought?

Finally Victor H Royer doesn’t pull any punches and looks at how and why casinos and manufacturers are throwing away money. Which is where I started...

Editor’s page

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Editorial Policy: The views and opinions expressed in Casino Life remain principally the views of contributors and do not necessarily reflect those of the editor or publishers.

The publishers wish to avoid inaccuracies and, whilst every precaution has been taken to ensure that information contained in this publication is accurate, no liability is accepted by the editor or publishers for errors or omissions, however caused.

Unless otherwise stated, articles appearing in this publication remain the copyright of the publishers and may not be reproduced in any form without the publisher’s written consent.

Printed in the UK by MPC Ltd.

The National Casino Forum (NCF) has held, and will continue to hold, meetings at the highest levels with the DCMS (Department for Culture, Media & Sport) on a regular basis.

Contents1 Editor’s Page

4 JOA Acquires and Grows Laurent Lassiaz, CEO of Groupe JOA,

discusses the acquisition of Casino de Besançon and JOA’s developments with Damien Connelly

9 Grand scheme of things Jim Simms and Seth Schorr are striving to

create the casino of the future at the Downtown Grand. By David McKee

16 Game ON bringing gambling back to Ukraine

Post event report by Event Director Glyn Thomas

20 Resorts World Birmingham ‘Has That Winning Formula for Success’

Peter White reports back from the opening night of Resorts World Birmingham

27 Gaming’s Future Has Arrived at Interblock Jack Bulavsky chats to John Connelly, Chief

Executive Officer at Interblock

31 Saddle Up! Alfastreet places a big wager on Royal Derby

David McKee chats to Ana Zlender, Sales Manager at Alfastreet

36 Global Gaming Expo 2015 Seminars review by Damien Connelly

39 Global Gaming Expo & Cammegh Andrew Cammegh speaks to Rebecca Green

about a very successful G2E 2015

42 Outsiders to the fore Bringing people into casinos at a senior level

from other industries: Paul Sculpher

44 The Buzz This Year at G2E, “Millennials.” Those “M’s” and all things social…They just

happen to be my students. Bob Ambrose

47 Still The Forgotten Game How and why casinos and manufacturers are

throwing away money. By Victor H Royer

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Liberté,égalité,fraternité

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Damien Connelly & Laurent Lassiaz, CEO of Groupe JOA

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JOA Acquires and Grows

Laurent Lassiaz, CEO of Groupe JOA, discusses the acquisition of Casino de Besançon and JOA’s

developments with Damien Connelly

We are accelerating the development of Groupe JOA by making acquisitions of other casinos. On November 1, we completed the acquisition of

Casino de Besançon from Groupe Lucien Barrière. We made this acquisition because it allows JOA to better serve the market in the newly created grande région Bourgogne Franche-Comté, which has a population of almost 3 million and whose major cities are Dijon and Besançon. Our acquisition of Casino de Besançon may also see JOA acquire some new Swiss customers, as the border with Switzerland is quite close.

“The ambition of JOA is to be the brand that changes people’s minds about casinos. Within this, our objective is to develop Groupe JOA. We are developing Groupe JOA by both building new venues that allow us to have new conversations with consumers—such as you can see at Lac du Der—and through acquisitions. We have screened the market, and our acquisition of Casino de Besançon is our first acquisition.

“Casino de Besançon is exactly the type of casino of interest to JOA as Besançon is a medium-sized casino that currently has 130 slots, 3 traditional tables and 3 poker tables. This acquisition also supports our neighbouring casinos in Luxeuil, Gerardmer, Lac du Der and Santenay. Besançon, Luxeuil, Gerardmer, Lac du Der and Santenay are

“ all close enough to complement and support each other, without being so close that they compete against each other.

“This acquisition will result in more jobs being created in the ‘new’ Casino JOA de Besançon. We will remodel this venue to transform it into our JOA style, which will include the casino having a greater focus on our JOA live tables experience, as well as using the slot innovations we have learned throughout our 21 other casinos—and of course integrating Casino JOA de Besançon with our online products and loyalty club. We will introduce to Casino JOA de Besançon a greater focus on light and colour, as we find these tactics help change the ambience inside casinos that then helps us change people’s perceptions of casinos.”

Gaming Developments“France is the only European market which has a strong imbalance in revenues between tables and slots—typically, slots account for over 90% of French casino gaming revenues. We are seeking to find a better balance by using more live tables and more electronic table games.

“Electronic tables allow us to show our customers—to educate our customers—how to play table games without the pressure of playing on a live table, which can make customers feel uncomfortable as they’re not confident they know how to play, say, blackjack or roulette. Electronic

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table games have proven to be an excellent way for us to introduce the likes of roulette to our customers at a low denomination. In fact, electronic roulette is now our number one table game by revenue, whereas it used to be traditional blackjack.

“It’s a new acceleration of JOA’s strategy to invest in traditional games, invest in more electronic table games, and in being more dynamic by testing new types of games. The Organic electronic roulette tables from Interblock have been very successful for us. By the end of this year, all of our casinos will be equipped with them, making us the only French casino group to have such product consistency. Our largest single installation of these Interblock machines is a 26-seat unit in Montrond-les-Bains—and in that casino, some of those 26 positions are outside in the smoking area.

“On our slot product, which is important to keep focused on as slots account for so much of our gaming revenues, Aristocrat has been one of the slot manufacturers we’ve worked closely with. Their machine performance is consistently very high, probably because they have such engaging games.

“For example, JOA casinos were the first in Europe to introduce Aristocrat’s Batman Classic TV Series slot this summer. Our JOA team were very

confident this was a strongly themed game that would allow us to generate real player excitement around its exclusive placing on our casino floors. We’ve been trying out some other manufacturers recently as JOA is committed to innovating. Manufacturers such as Aristocrat and Scientific Games often help the group propose new products that helps JOA seduce our clients.

“While slots are still our main revenue source, we are focusing more and more on our tables product. We are using a different style of decor in our live tables area to create a different ambience. This decoration uses black and white posters, and is consistent across all of our traditional table games areas.

“You can see from our tables ‘charter’ that we use humour to communicate with our customers. We want our customers to have fun visiting JOA casinos; again we use the same black and white imagery on our ‘charter’ as you see throughout our live tables area to maintain the same theme, the same feel, and the same ambience. For instance, ‘Misez tout sur le chic’ means ‘Bet everything on the chic,’ which is a way for JOA to politely and informally ask our customers to dress reasonably and not wear things like baseball caps and

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sunglasses that they may see a lot on TV poker…it might look cool on TV, but it doesn’t look so cool in a casino and is not appreciated by all of our customers.

“With our developments and innovations in our live and electronic tables areas, we are attracting a more even mix of players than before. On slots, we are 50/50 male/female. With table games, we were hugely biased to males; something like 90% of our table customers were male. Electronic tables have allowed us to introduce more females to table games. Because of this, we’ve seen more women start to play live tables because they’ve been introduced to the game by playing on our electronic tables.”

Developments Bring Balance“Having a better balance in our products and amenities allows us to attract new customers to JOA. These ‘new customers’ use our properties in a more balanced way. They are not visiting our properties just to gamble. They are using all of our products: our buffet, our bars, our arcades, our bowling alleys, our nightclubs. They dance, they eat, they play, and they party. And that is perfect for us because at the same time, we can move people

around within each property so there’s no empty space with no energy.

“What’s interesting is the way our ‘new generation’ customers use our casino properties. They enjoy the place by visiting with friends, which is very important for us. If you visit a casino and lose and you are on your own, you leave without winning. But, if you visit with a group of friends, some will lose and some will win. When the group of friends leaves, they can see positives and be positively reinforced that the casino is an entertainment destination.”

Non-gaming Growth“We use our non-gaming activities as the engine to attract new types of customers. We want to change people’s perceptions of casinos. We want to offer consumers a casino product that is different to what they have in their mind. 100% of our new space at Uriage is dedicated to non-gaming, 50% of our building space at Lac du Der is non-gaming, and about 65% of our building space at La Seyne-sur-Mer will be non-gaming when this casino opens in December 2015. We will extend Les Pins during 2016 and, again, 100% of this new space will be non-gaming. And, of course, we will refurbish our

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latest venue, Casino JOA de Besançon. I believe we are the only operator in France to put so much emphasis on developing non-gaming amenities.

“14% of French adults have visited a casino. In certain places where JOA has a casino, we have grown this to 20%, and some people only visit our casinos to use our meeting spaces, or for our Le Comptoir JOA F&B offering.”

F&B Brand Growth“We have branded all our restaurants Le Comptoir JOA. Le Comptoir is a brand we use to propose product that is relevant to each market depending on the location of the venue; whether it’s in the mountains, in a regional town, or at the seaside. All menu items offered are sourced from local produce, and we have about 50% of each menu designed by the local chef, and the other 50% of the offer is a centralised menu and centralised recipe to help us develop our chefs while offering a consistency for our customers.

“We organise once each year a competition for all our chefs in JOA to make sure we maintain a high focus on F&B as a group; it’s our annual version of the Bocuse d’Or, as JOA has worked with Paul Bocuse for many years. Everyone in JOA understands that the quality of our food is very, very important to make sure our customers are happy with our non-gaming product. We use F&B to attract new customers as well as to retain our existing, loyal customers.

“We have developed a standalone Le Comptoir JOA bistro moderne that is not part of a casino. It is an extension that allows the JOA brand more

‘consumer touch points’ and is in line with our earlier brand extension of creating JOA-branded beers that are on sale both in our casinos and in neighbouring retail outlets. Such brand extensions allow us to keep feeding the brand. The more exposure consumers have to our JOA brand, the higher our awareness.”

Digital Acquisitions“We are also broadening our ‘consumer touch points’ by using a variety of digital tools to allow

our younger customers to better connect with our JOA brand. These digital tools allow us to provide a more integrated and consistent experience when our customers are in our casinos, and when they are away from our venues. We are using digital screens in our venues, Apps and other technology products so our connected customers can keep in touch with JOA wherever and whenever they want to.

“We use our online offering to drive customers to our landbased, brick and mortar casinos. As we continue to grow our database nationally, and as we show our customers they can take

their loyalty points earned online and use them in our brick and mortar casinos—and vice versa—we are developing a really dynamic offering that allows JOA to interact and communicate with our customers at a level each customer is happy with. Our objective is for JOA to be a click and mortar provider of gaming entertainment to our customers in the future.”

From my visits to various JOA casinos recently, I can assure you their customers are happy. What an operator!

IMAGE: GUILLAUME PERRET

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Grand scheme of things

Jim Simms and Seth Schorr are striving to create the casino of the future at the Downtown Grand. By David McKee

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“Gamblers wanted” is the new mantra of Fifth Street Gaming’s Downtown Grand casino, in Las Vegas—and no wonder. On a recent midweek night, the casino floor was thinly populated and the high-limit room empty. The lively exception to the prevailing quiet was a crowded craps table. The Downtown Grand has been a victim of geography. Executives will tell you that its biggest handicap is being a block off the Fremont Street Experience, the main artery of downtown Vegas. That one, long block might as well as be a mile as far as foot traffic is concerned.

Not even being next door to the Mob Museum has spared the Downtown Grand from some early struggles. Gone is the short-lived baccarat pit, along with Red Mansion restaurant, Spread Deli, street dice, the Ninth Island shaved-ice bar and the Mob Bar. It was even rumored that the Grand would be put up for sale.

Yet what was really happening was that Fifth Street was rethinking and reloading, preparing a raft of initiatives that CEO Jim Simms and Chairman of the Board Seth Schorr unveiled on the cusp of Global Gaming Expo. They’re not a quick fix but are definitely a forward-thinking, long-term strategy that indicates that owner CIM Group and Fifth Street are in Downtown to stay.

“We really believe we have something special here,” says Simms. Referring to the casino’s post-industrial look, with exposed brickwork and the old “eye in the sky” catwalks revealed for all to see, he added, “It looks unique and it is not designed to be a run-of-the-mill competitor. We want to be perceived as right up there with Golden Nugget in terms of downtown offerings.” Then, addressing the obvious problem, he said, “Even though we’re just a couple of minutes away from Fremont, if we can get people to come here to see what we have, they’re going to be excited.”

Something of valueHow is this excitement to be created? Simms and Schorr outline a three-pronged approach whose basic components can be boiled down to prominently displayed Shufflemaster electronic table games (blackjack, craps and roulette), skill-based games and value-oriented slot play. To the latter end, the Downtown Grand is reinventing its loyalty program into a three-tiered system. The

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White Tier is your basic, entry-level player card. If 2,500 points are accrued within six months, players advance to the Silver Tier. And if you’re really serious about your slot play, racking up 25,000 points in six months, then access to the Black Tier is yours.

While those may seem like ambitious goals for players, they are accompanied by a value-oriented approach whereby only 250 points are required to win a dollar of free play, down from 333. “By taking it to 250 points to get $1 of free play, we are now two to three times as rich as our nearest competitors on Fremont Street,” expands Simms, who also sees it as a trade-off to obtain more time on device from his slot players. “Depending on your card status, you get two times points, three times points or five times points on weekends.” Grand execs aim to be quick to get the newest slots on the floor and pride themselves on being the first Las Vegas casino to deploy Big Bang Theory slots.

But Simms has an even bigger trick up his sleeve. “Probably the biggest promotion we’re going to launch is our signature $250,000 Grand Slot Tournament. This is the richest tournament that is happening downtown and certainly the richest in our history. Essentially, we are going to start giving

our customers four ways to qualify to win $250,000 cash and free play. If you play at the Downtown Grand and you earn 250 points, you qualify. If you enter the Slot Point Challenge and have the most points during the day, you’ll qualify. If you hit a jackpot of $1,200 or more you’ll also qualify.

“You’re going to get invited to come back here with discounted hotel rates based on your play and you’ll have a chance to play in two sessions per month. If you get the top 50, you automatically go to the finals but the beauty of this tournament is that if you don’t, you qualify for another session down the road,” Simms continues. “We’re going to have our grand finals in 2016—10 finals prizes along with session prizes and the grand winner’s going to take home a quarter-million dollars cash. We think it’s going to be a compelling reason for our customers not only to play here but to add new visitation to our property.”

For the novice table-game player, Simms and Schorr are setting great store by three electronic table games from Shufflemaster. For them, it’s a confidence builder that will capture the newbies and eventually turn them into live table-game players. “When you have an electronic table game, it takes away some of the nervousness,” says Simms.

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“You’re just playing with a machine. You don’t have to worry about the people beside you, looking at you, wondering if you made the right decision with your cards.”

Schorr adds that the traditional table games pit has been relocated, to make those the closest games to the porte cochere and the casino cage. “Nobody likes to be in an empty restaurant,” he explains. “You want to be around the people. We’re able to create a more exciting environment in a smaller space. That’s also convenient to the table games customer—close to the cage.” The idea was also to get the craps tables out from a confined space to the middle of the floor, where the players’ excitement could spill over into the rest of the casino. As Simms puts it, “You go to a party at somebody’s house and there’s six people there, it’s kind of flat. If there’s 60, it’s more energetic.”

Capturing the next generationBut the bread-and-butter slots and tables player isn’t enough. Not as Schorr sees it. His goal is to capture the ‘millennial’ audience, coming of age in the casino industry. “Over the past 10 years, the best way to tap into the millennial audience

has been the nightclub business. But the nightclub business is changing,” Schorr says. “It isn’t as it once was. We want to see the millennial on the casino floor…and we like to introduce gaming to the next generation.”

That means reinventing the casino-product offering and, to that end, Fifth Street has been in active discussions with leading-edge providers of skill-based slots. But Simms and Schorr aren’t just banking on youth-friendly but static slots—something for which millennials have shown little appetite. (“It’s not so easy to move a [slot] machine every single day,” Schorr observes.) Their new business model is heavily predicated on mobile, tablet-based gaming. This is definitely not traditional casino thinking and—given the amount of trial and error, testing and licensing between the show floor and the casino floor—Simms and Schorr are taking a bold leap into unknown territory.

But for them, it’s go big or go home, and that includes expanding the mobile-gaming area to the infinity-pool deck on the roof (an amenity that Fifth Street execs feel is underappreciated at present). “In order for something like [skill-based slots] to be successful, it has to be part of a holistic strategy. To

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stick six tablets in a giant casino, in a corner, and cross your fingers that people are going to play it—and I’m not speaking of the Venetian or anyone in particular,” says Schorr, with just the slightest hint of a dig at the competition, “but I don’t think that strategy is going to be effective.”

They’re also experimenting with something that is not a traditional casino offering at all but “the icing on the cake”: electronic-sport competitions. These elevate video-game playing to a spectator sport, with both tournament contestants and an audience. Bally’s Las Vegas recently hosted a one-off event but Fifth Street is talking about making it a regular event. Of the growing (and lucrative) phenomenon, Schorr says, “There was one in Seattle where the prize total was $18 million. That’s more than the PGA. The top prize was $6 million. Staples Center [and] Madison Square Garden have sold out for these competitions.”

With the caveat that the Downtown Grand is

“in the early stages” of presenting electronic-sport tournaments, Schorr describes it as a complementary offering to his casino’s repertory: “It’s not to replace anything. It’s not a dramatic shift. This is instead incorporating different ways of wagering and talking

to a wider audience.” Simms and Schorr have already designed an e-sports pit that will fit into the existing Downtown Grand aesthetic, and their bottom-line goal is to create the casino of the future. Hence all the reinvention. “You have to start from scratch if you’re going to take advantage of what the future looks like,” says Schorr, adding that older, more traditional casinos make the transition incrementally, not in as dramatic a fashion as the Downtown Grand.

As Simms puts it, “The point is, we’re very proud of what we have here. We think we have an outstanding facility here, a great team and we’re making some changes to take it to the next level.”

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Game ONbringing gambling

back to UkrainePost event report by event Director Glyn Thomas

The Prime Minister of Ukraine Arseny Yatseniuk said that he would attend but in the end fear of the opposition picking up on the Government being pro-gambling (and therefore “anti-family”

and all that entails) was enough to keep him away from the opening day of the Game ON conference. The Deputy Justice Minister was sick and made her apologies but the Deputy Finance Minister did attend as an observer with her advisory team. In the

end though such problems did not slow down the debate nor take the shine off the event as over two days the audience heard first-hand from local and international speakers about the current state of the gambling market in Ukraine and what will be needed to bring it to international standards.

Day one started with Michael Boettcher, President of Storm International who veered from his prepared speech to teeter between outright pessimism and a passionate glimmer of hope that the Ukraine

Madis Jääger, CEO Olympic Group

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government gets it right. As a long-time operator in Eastern Europe he, at the helm of Storm, has seen it all before – promises broken, corruption and a tailspin of the industry caused by greed. He did hope though that the event and the constant pressure on the government to do things properly would lead to a robust industry – even stating that he would be prepared to invest millions immediately if he could be assured that the legal framework would apply to all. This has since been backed up by an official press release by Darren Keane – Storms CEO – stating just that. Captivating as ever Boettchers tone started the event on the right message and lead it towards some very straightforward conclusions for Government to follow.

Madis Jääger, CEO Olympic Group echoed the message of Boettcher and outlined in graphic terms just what was at stake. No international investment would mean a local-run stagnant industry with little contribution to tax coffers. Self-interest would lead to corruption – and yet the Government had the chance to do it right and benefit all parties. Using the Olympic Group as an example of how to get it right, he ran through the positive contributions that a vibrant industry can bring to the economy. Speaking

of “Responsible Gaming – Trust and Confidence” he was clear to point out that trust needs to work between all parties – Operator, Consumer and Government.

Steve Donoughue, Gambling consultant and UK Government adviser reinforced these messages by explaining the need for independent licensing. “Independent” is a word rarely heard in Ukraine as inevitably the Government want to control everything but in the case of gambling the lack of an independent Gambling Commission would lead immediately to corruption. Basically the Government needs to set policy – what they expect of the industry – with a Gambling Commission then establishing the regulations and enforcing them. The Commission should be run from the license fees with Government just collecting the tax. Measured, forceful and clear, Donoughue made it perfectly clear what was needed and was surprised that anyone in Government could stray from a tried and proven method of making sure the gambling industry works properly.

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VLT Regulation in Europe was the subject matter for Martin Lucas, MD VLT & New Markets at Inspired Gaming Group who gave examples throughout Europe of how VLTs could lead to a controlled gambling environment that was still exciting for players.

Irina Sergienko, General Director, Ukraine Bookmakers Association was skeptical about the Government relinquishing control of gambling through the creation of an independent commission. From what she had seen and heard the government factions were already starting to establish their own business interests and in a time-honoured way split up the industry and allocate it to self-interest groups for financial and political gain. Sergienko also stated that whilst International experience was helpful it was likely that the Government would do it their way – the Ukrainian way – citing special requirements of the country.

Simon Fraser, Head of International Streaming, GBI Racing gave an inspired speech about horse racing in UK and how it has become an essential part of the economy – leading to additional jobs and tourism. He then stated that it would be possible to apply the same investment principles here and that horse racing can once again be part of Ukraine’s culture.

Post lunch and the event closed with a Round Table of speakers fielding questions from the floor.

Post-event a brief report was sent to Government ministers outlining the event and making recommendations. This will be followed up in the next weeks as the Ukraine Gaming Association begins its work.

both. At the event he was speaking on behalf of the Ori Group – local to Ukraine- who want to develop casinos for the local market. “Global knowledge – local experience” was an apt title for his presentation where he outlined how the best of international experience could lead to a vibrant local gaming industry.

Illya Sverdlov, Legal Director, DLA Piper Ukraine was next up with a blow-by-blow account of taxation in Europe putting Ukraine in context. DLA Piper are a well-respected International law firm with specialists in gambling throughout Eastern Europe so are well-placed to advise the Government on how to proceed yet so far they have not been asked to contribute. A great omission when such expertise is on the doorstep.

“Location, Location, Location” is a well known phrase in Real Estate circles and it was no less true here when Nick Cotton, Managing Director DTZ Ukraine outlined the likely hot spots for casinos and sports betting locations. A long-term Kyiv resident and MD of DTZ he is in the right place at the right time to offer prospective investors timely advice on location – rents and property purchase outright.

The day closed with Francesco Baranca, General Director Federbet talking about how sports bookmakers are regularized and how there is a constant fight against match-fixing

This was then followed later that evening by a joint-reception hosted by the organisers and lead sponsor Parimatch at the latters model information centre in the heart of Kyiv.

Day two and Natalia Pakhomovska, Partner, DLA Piper Ukraine looked at the online market and it’s regulation as the market matures throughout Europe.

Pontus Lindvall, CEO and President, Betsson began where previous day one speakers had left off with a condemnation of creating an imbalanced system that did not have equal enforcement. Basically “if you make it difficult for online operators you risk them going underground. Create a level playing field and fair tax and they will flourish”. He also was emphatic that Betsson would be a prominent player in Ukraine if that level playing field occurred. If his company was going to pay taxes – so should everyone else or it creates unfair competition.

Sergey Portnov, CEO Parimatch was unable to make the conference but his spot was ably filled by Lasha Gogiberidze who outlined how a solid legal framework will positively affect the labour market, increase tourism and help the economy.

One of the key issues that emerged from the conference was the need to maintain effective and timely communication between local and international operators and the Government. Once the conference was over such dialogue would be essential together with providing news of any legislative changes that would have an effect on the industry.

To that end the Ukraine Gaming Association has been formed. A website with details of the role of the association, membership and charter will be launched at the beginning of November

Visit www.ukrainegamingassociation.com

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The following briefing note was sent to the Prime Minister of Ukraine, the Minister of Finance and the Minister of Justice on 16th October 2015

On October 13 and 14 2015 130+ delegates and speakers assembled at the Hilton Hotel to discuss the future of gaming in Ukraine. A video giving a flavour of the event is on the website www.ukrainegaming.com

The speakers included land-based and online casino / sports betting operators from the international gaming industry. Notably, for land-based casinos this included the Olympic Group and Storm International who were present in Ukraine prior to the closures in 2009. The online industry was represented by Betsson one of the largest online companies in the world, based in Sweden, and Parimatch, an Eastern Europe sports betting company already working in Ukraine. The Deputy Minister of Finance was present on the first day for over an hour and, as promised, was never required to speak nor meet any of the speakers. The Deputy Minister of Justice was unwell and therefore unable to attend. Several RADA Deputies did attend.

The overall conclusions of the two-day event were as follows:• The Government do not have the in-house expertise on the

gaming industry to write effective legislation to attract foreign investment. None of its advisers have a gaming knowledge broad enough to address contemporary issues in the industry and hence, so far, no Government proposal has been tabled. Generally it was believed that the Government are seeking high taxation due to perceived high demand. This is not a sustainable approach.

• The International gaming industry is prepared to assist the Ukraine Government to write an effective law which will be for the benefit of the whole country – not the self interest of a few. It is also prepared to provide training for Government and parliamentary officials and arrange visits to working casinos and online facilities abroad to show real examples of how the modern industry works.

• The 20+ draft laws are not serious attempts at providing robust legislation for the benefit of Ukraine – they are written to progress the self-interest of the authors. A few have merits but they are still flawed. They should be individually assessed in line with an agreed set of government and international standards objectives.

• Despite corruption being recognised as endemic in Ukraine this was not considered a barrier to entry by investors if the new legislation was robust and administered by an independent Gaming Commission.

• Government should decide policy – the Gaming Commission should set out regulations.

• There needs to be framework legislation (Policy) which sets out the key requirements and this should encompass all aspects of gaming – land based casinos, online gaming and lotteries (plus incidentals such as poker, horse racing and bingo). NB A “policy roadmap” can be written by international experts within weeks if requested.

Game ON Conference - Outcomes and Opportunities• The independent Gaming Commission should then provide the

details (Regulations) on how the industry should be regulated to meet the framework requirements.

• The public need to be educated on why regulated gaming is better than the alternative which exists now – where no regulation means no tax income, money laundering and no help for problem gamblers and how socially responsible gaming can be a social as well as a financial asset. This would be part of the role of the Gaming Commission

• Once established the gaming industry should largely self-regulate and promote itself– working with the Gaming Commission to ensure a safe, transparent industry.

RecommendationsIt’s recommended that the Ukraine government endorse the following principals:

• An independent Gaming Commission should be appointed at the earliest opportunity to provide initial advice and guidance to the Government – and eventually be responsible for writing regulations, issuing licenses and enforcement. The Commission shall not have members from Government nor self-interest groups and it should be funded out of license fees.

• The Government should agree to consider a “policy roadmap” written by key international organisations present at the conference that in effect are the founders of the imminent Ukraine Gaming Association. This can be delivered within 4 weeks.

• Notwithstanding item 1) it should set up a working party consisting of a representation of those members and the Government key representatives to establish common principles of legislation to international standards. All recognised that there is no need to “re-invent the wheel” – just copy + paste the best legislation available elsewhere.

• To provide effective guidance a cost – benefit analysis should be commissioned. At present the figures being used by Government are unrealistic and misleading.

Positive outcomes of following these recommendations:• Ukraine will be seen to be following recognised International

standards.• Corruption and cronyism will be minimised. In the case of

licenses it will be obviated• Tax revenue will be maximised and able to be implemented

swiftly• Tax targets will be more realistic and achievable• Inward Investment will come to Ukraine bringing tourism and

jobs• Problem gaming and gaming education can be addressed

However, if these recommendations are not followed there is a high risk that the legislation process will stall - or that a flawed legislation will emerge giving no comfort to foreign investors, bringing in less revenue and serving only the interests of the few.

Resorts World Birmingham

‘Has That Winning Formulafor Success’

Interview with Barry Clemo- Business Development Director - Resorts World Birmingham. Peter White reports back from

the opening night of Resorts World Birmingham

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Genting International Casino at Resorts World Birmingham is the first new-build resort casino to open in Europe for a generation. What amenities do you think set it apart from other European casino properties?The fact that the Genting International Casino is located within a large scale resort destination. This means that guests are able to enjoy a wide range of other leisure activities beyond gaming. All under one roof you can explore the fifty outlet shops, enjoy a drink or something to eat in one of the 18 bars and restaurants, see a film in the eleven screen cinema, relax in the SANTAI Spa and make your visit an overnight experience by booking into the Genting Hotel. This is an exciting proposition for the UK and one that is unique as our belief is the combination of offers we have are not replicated anywhere else in Europe at the present time.

Casino Life was the only trade media who attended the opening--thank you for inviting us. We saw a varied mix of people at the opening party, from VIPs through to the Average Joe. What customer cohorts are being targeted by the Genting International Casino?We were delighted you could join us- it was a great night. There will certainly be a different mix of guests enjoying the offer at the Genting International Casino. Because of what we have on offer within the resort clearly some visitors will enjoy the casino as part of a wider leisure experience- for example they have come for a day visit or a leisure break. There is also a significant conference offer within Resorts World Birmingham and that will also attract a casual gaming visitor to the casino. Of course the casino will also attract and build up its own loyal customer base who use the casino regularly and that will be a very important part of our business.

The casino is a small part of the overall entertainment and lifestyle mix offered by Resorts World Birmingham. What customer cohorts are being targeted by the overall Resorts World Birmingham property?Because of the diversity of the overall offer at Resorts World Birmingham there is a wide range of target audiences for us to attract. Because we have the West Midlands first large scale outlet shopping

Peter White & Peter Brooks, Chairman Genting UK

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offer there will be a large and significant market of regular visitors within a one hour drive time that will be generated because of that. The bars and restaurants and cinema will generate a regular local market too. The hotel and conferencing will mean we have guests in the resort from all over the UK and internationally given our close proximity to Birmingham Airport. In addition we are excited that we can also provide a new and wide ranging leisure offer to the 3m visitors that come to the NEC campus each year.

Resorts World Birmingham is the first property using the Resorts World brand to open in EMEA (Europe, Middle East, Africa). What elements of Resorts World Birmingham are consistent with other Resorts World properties around the world?Resorts World Birmingham is the fifth to open around the world. Of course the success and learning from operating the other Resorts World locations has influenced how we approached this development. We are the smallest in size of the five Resorts World complexes but we have replicated the highly successful combination used in Asia of combining a wide ranging leisure offer, with accommodation, gaming and retail. And both the design flow and customer journey around the resort has used the experience of our other venues but we have been careful to ensure that we reflect the way the UK consumes their leisure time particularly around the type of food and beverage and retail offers we have. Here’s one example of the synergy between resorts on a visit to Asia you will see the Sports Bar as part of the casino and we have done the same here in the UK.What benefits does Resorts World Birmingham hope to bring to the surrounding communities?When we opened the doors on October 21st we became one of the local area’s

largest employers with a total of 1150 jobs being created. In May this year we held a recruitment fair and over 3000 local people attended - so we have had positive impact on the local employment marketplace. We are clearly going to be a major factor in the continued prosperity of the NEC campus and the more successful they are the more local jobs that are secured. PwC undertook an analysis of Resorts World Birmingham’s contribution to the local economy when it opened and that revealed it will generate in added value £38.2m per annum. So we are having a very positive effect to local communities.

If you were able to go forward in time by 10 years, what would your ideal future Resorts World

Birmingham look like and be achieving?We are still now just taking breath from our launch and in the earliest phase of our journey so of course we will see how the next year pans out. But in ten years time we are confident that we will have created a resort destination that provides a wonderful experience to a wide set of audiences providing a range of mini leisure adventures for all tastes. That we will have transformed the way leisure and gaming is consumed in the UK and by doing so created a sustainable market and also played our part in the continuing development and success of the NEC and supported their ambition to remain as the leading conference and entertainment campus in the UK.

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John Connelly, Chief Executive Officer at Interblock & Jack Bulavsky

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Gaming’s Future Has Arrived at InterblockJohn Connelly is Chief Executive Officer at Interblock.

He was extremely busy during G2E 2015 showing off the company’s revolutionary Pulse Arena. However, Connelly

took time to sit down with Jack Bulavsky, Special Assignment Correspondent for Casino Life in Las Vegas,

to discuss the future of gaming

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Interblock is a worldwide leading developer and supplier of luxury electronic table gaming products. Its multi-player gaming devices provide the ultimate in luxury

interactive entertainment experiences. The Interblock brand is globally recognized for quality gaming solutions and technical support in more than 130 jurisdictions. The company’s multi-player gaming machines are setting new industry standards that have earned the brand its position as market leader in its business segment.

This is your first G2E as CEO. How is it going?Connelly: It has been far better than any of us could have imagined. The launch of our Pulse Arena is just one of the many innovative initiatives we are excited to share with the industry. With this said, the Pulse Arena has really stolen the show, due to its ability to bring the Millennials to the traditional casino floor. Everyone I’ve talked to, including the media, has been impressed by the unique approach of this product. This is the first time people have been able to see a fully executed version of this concept, which we have been working on for well over a year. We’ve had a traffic jam in front of our booth since the show floor opened which we think is a testimonial to its appeal. Everyone is watching and that speaks for itself. It appears to be one of the most exciting new products on the show floor.Why? What is Pulse Arena?Connelly: Pulse Arena is what we believe to be one of the world’s first hybrid products providing an environment to our casino customer that is wrapped around an industry leading Electronic Table Game (ETG) provided by Interblock. This gaming and social atmosphere was designed not only to attract the next generation of players, the millennials, but existing players who are seeking innovation. We’re combining Interblock’s luxury electronic gaming machines with an immersive audio-visual entertainment experience that can

easily adjust to various demographics. It’s dynamic, modular and can appeal to any sized casino.

Is this what your clients are asking for?Connelly: For decades, operators and suppliers have been talking about what the future of gaming might look like. If you look at casinos today, not just in Las Vegas but around the world, more and more of the revenue is being spent by the millennial off the casino floor meaning in restaurants, shopping, at the pool, clubs and shows. So the money is there, but the issues the casinos are having, is trying to figure out how to get players back onto the traditional gaming floor. We’re finding that’s becoming harder and harder every year.

With that in mind, we took an approach to focus not only on the product, but to also focus on the environment. Everything about Pulse Arena is data driven, making the ETG very conducive to the

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environment we created. We have the leading ETG product in the world and have simply wrapped it into an environment that is dynamic and familiar to the player.

You should know that Interblock recently completed the first ever study of ETG players. The study revealed that these games are universally appealing to all demographics of players, no matter the age or sex. Our data clearly indicates that this is an area of the industry that is experiencing growth and increasing in popularity. Customers who partner with us will not only have access to this valuable data, but also to our 25 years of focused concentration on this market segment. ETGs are in our DNA – there is no other company who comes close to our experience and knowledge of this segment of the market.

What is the casino landscape these days? Connelly: I have had the privilege of meeting with casino customers around the world and experienced the evolution of the player across a demography, which varies greatly. The one common element you will find globally – is the competitive landscape today is far different than it was a decade ago. Casinos must compete, and compete smarter, to

get customers to make a conscious decision to visit their locations. I believe casinos are taking a fresh look at their traditional casino floors and trying to find ways to remain relevant 10 years from now. Interblock works closely with our casinos partners to determine how best to integrate the Interblock ETG in a tailored fashion to meet each venues specific demographic needs.

A specific example on how the Pulse Arena has been designed to be a dynamic environment to achieve these various demographic demands, could be Senior Sunday with games like Bingo where Frank Sinatra is being played in a more subdued lighting environment. On Friday night after 8 p.m., this same area can be made into a lounge environment. Pulse is a scalable product applicable to all size casinos and completely customizable.

Keep in mind that traditional casino players are looking for something new on the casino floor other than another slot machine with a different brand. The future of gaming is more social and the future of gaming is more interactive. The Pulse Arena is an environment, but if you don’t have technology inside that drives revenue, how are you going to pay for it? The Interblock product is the heart that will drive the Arena.

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2011: 8,000 machines • 2015: over 30,000 machines

DRGT Africa [email protected] www.drgt.com

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Saddle Up!Alfastreet places a big wager on Royal Derby.

By David McKee

Back in 1992, Alfastreet was founded to manufacture furniture. Today, the company is still making tables and consoles – but of a very different kind. When Iztok Pockaj took over the family

business in 1994, he saw the potential of redirecting the company’s energies into the gaming industry, starting with the R8 electronic-roulette console, still the company’s best-selling product. Their high numbers of spins endeared them to casinos, while

players liked the private betting terminals that came with the game.

While electronic roulette was the company’s first area of impact and remains the mainstay of its product line, Alfastreet has diversified its product line into such emergent areas as stadium gaming. It’s also been trotting its Royal Derby tabletop-racing game around the trade-show circuit, including ICE and G2E Asia, and it made a splash at the recent Global Gaming Expo in Las Vegas.

Ana Zlender, Sales Manager Alfastreet

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Due to its origins in Slovenia, Alfastreet’s early impact was greatest in Eastern Europe, with Alfastreet Roulette making a particular impact in Romania. With time, Alfastreet’s reach has become global. It maintains a heavy presence in Latin America, and has enjoyed particular success in the Singapore market, where it has placed 500 units between Marina Bay Sands and Resorts World Sentosa.

In the U.S., where the electronic-game market is dominated by a dwindling handful of manufacturers, Alfastreet continues to fly under the radar, perhaps due to convoluted distribution arrangements. For instance, when Delaware’s three racinos invested in Alfastreet R8 Multi-Player automated roulette terminals, they obtained them from GTECH by way of its Spielo subsidiary.

Sales Manager Ana Zlender says Alfastreet’s low U.S. profile is by design. “To make the job a little harder for our competitors, we chose not to disclose specific [game] locations, but we can say that some of these placements will have a great impact on the U.S. electronic table games market,” she told Casino Life.

In 2014, Alfastreet changed its distribution affiliation, choosing Philadelphia-based KGM to funnel its product into the United States. “Electronic table games are an important piece to the ever-

growing KGM product line. We chose to partner with Alfastreet because their exceptional product standards and forward-thinking technology aligns with KGM’s commitment to continually enhance and progress the gaming industry,” KGM Executive Vice President Jason Cohen said at the time.

Last July, KGM installed Alfastreet electronic roulette stations at both of Connecticut’s tribal casinos, Mohegan Sun and Foxwoods Resort Casino. (Tribal casinos in the U.S. have traditionally been some of the more forward-looking ones with regard to technology.) The flagship R8 terminal has been joined by four-, five- and six-player configurations, giving a range of options to the casino that is looking to conserve space or create a more-intimate atmosphere … not an inconsiderable criterion in a time when table games are enjoying greater popularity among younger players because of the interaction they offer. “The R4 is getting a very important share of our production, confirming that the casino operators were missing a compact, high-performance roulette machine,” Zlender notes, adding that they are especially appropriate for VIP rooms.

“It definitely works in our favor on the U.S. markets,” Zlender says of Millennials attraction to table games, “which will eventually ease our way to good market shares. We believe it shows that the

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real attraction in the world of electronic gaming is still represented by the machines, that they can provide the players with the feel and excitement of live games.

“Alfastreet is without any doubt the market leader in Latin and South American markets with commanding market shares in almost every country,” Zlender continues. “Our products are appreciated by operators and players, which is the highest recognition for all the effort that was made to adapt the machines to the specifics of each jurisdiction, sometimes even each venue! These are the markets with very high growth potential and really enthusiastic roulette players – the fact that our machines are considered to be the best is a true testament to our work.”

Despite its European origins, Alfastreet doesn’t enjoy the ubiquity in the EU that it does in Latin America and South America, by the company’s own admission. Though Zlender says that “we couldn’t find a single country that doesn’t have in operation a decent number of our machines,” she characterizes the company’s market penetration as “steady” with bigger and better market share to be expected in the future.

This, presumably, includes the company’s forthcoming expansion into the slot machine market. It’s a daring, counterintuitive move at a time when slots are on the wane in the U.S. (At present, Alfastreet only offers a game called “One Reel Slot.”) She predicts that definitive iterations of Alfastreet’s slots will be ready in time for the 2016 ICE show. Zlender calls it “a little premature” to consider the North American ascendancy of table games to also be a global phenomenon “but it definitely works in our favor on the U.S. markets, which will eventually ease our way to good market shares [and] confirms the company’s orientation from the very beginning.”

Alfastreet also makes stadium-gambling configurations, something that is popular in Pacific Rim casinos but has only been experimented with in Las Vegas. The Vital Vegas blog panned a stadium game from an unnamed manufacturer that was installed in Sheldon Adelson’s Palazzo. Grumbled the author, “It takes just three members of the casino staff to serve all those players, two dealers and a floor manager. Low cost, high return, just the way casinos like it!”

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Zlender says these games are “not suitable for every venue” and the smaller the stadium, the better. In North America, “stadium [gaming] is more or less a novelty, and I predict it will not catch on, as it did in some other countries. The U.S. is in every aspect still a conservative market and it will take time for such a change to happen.”

She holds out greater hope for Alfastreet’s online-management system, based on its simplicity. Competing systems, she argues, are not only very expensive but so complex as to negate their all-in-one appeal as a management solution.

Alfastreet’s new ‘show pony,’ as it were, is Royal Derby. This is a challenger to the venerable and player-beloved Sigma Derby. (Casinos are less fond of it, despite its large house edge. Only three Nevada casinos offer it.) Alfastreet has attempted to improve on Sigma Derby in a variety of ways, including the number of wagers that can be made. It has increased the number of ‘horses’ from five to six and engineered the track so that they can change lanes during the race – Sigma Derby’s plastic ponies run in fixed tracks. The course length has been randomized (the position of the starting gate will move between races) and ‘weather’ conditions on the track are simulated. “All of this is tied by the attractive and involving commentary,” says Zlender.

Alfastreet isn’t the first manufacturer to throw down the gauntlet against Sigma Derby but it may be the most sophisticated. “There is huge number of players that are in love with horse racing in general and they are avid players of these machines,” Zlender continues. “It is the first game of its kind ever, to be able to provide such a close feeling to the real race. The kinetic movement of the horses is just spectacular, and it’s easily the most entertaining machine to play.”

Not for the first time, Zlender refers to the emotional appeal of an Alfastreet product. “We believe in the global attraction of [Royal Derby]. As you know, the mechanical horse-racing machines were huge success a couple of decades ago and there are many players genuinely nostalgic about it. G2E is of course one of the most important gaming exhibitions of the world and Royal Derby has been hugely requested and anticipated. It has been a star attraction on the shows so far this year. The players and operators love it. This game is unique, without any competition so far.”

In the meantime, Alfastreet is taking a moment to rest on its laurels. “Naturally, we are taking bets on who’s going to be the first one to make a copy” of Royal Derby, Zlender says, “like so many of our products in the past.” It’s a past worth emulation.

Global Gaming Expo 2015

Seminars review by Damien Connelly

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Damien Connelly & Geoff Freeman, President and CEO American Gaming Association

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We don’t know what’s out there,” stated A.G. Burnett, Chairman of the Nevada Gaming Control Board, during one of the G2E seminars I attended. “Some of

the meetings I’ve had over the last couple of years (have been) with some really interesting people and companies who have really interesting ideas…we’ve unfortunately told them: ‘Great idea. Really cool gizmo or product. You just can’t do it in Nevada.’

“Those meetings need to change….If (it) is an interesting idea, and if it is something we don’t have any issues with from a regulatory standpoint—patrons won’t be harmed, the casino can still audit the revenues, suitability standards are still met—then why are we continuing to say no to that? We want to be able to change, literally, on a monthly basis.”

Our industry needs to change faster. Mobile device usage by the average American consumer shows a massive swing away from Gaming (-36%) while simultaneously recording huge growth in Entertainment (+240%) from 2Q14 to 2Q15 (source: Flurry Analytics). During this 12-month period, time spent Gaming on mobile devices has declined from 52 minutes per day to 33 minutes per day, while Entertainment has increased to 44 minutes per day.

If you looked at this data 2Q14 and were looking to make investment decisions on the back of it, you’d say invest in mobile Gaming products. Now? It’s a significantly changed landscape that shows Gaming has lost traction to Entertainment for the average American consumer in just 12 months. This is a major issue with markets that move so quickly—how do you invest with a reasonable certainty of earning a decent RoI when you’re a landbased casino with quite high CapEx requirements absorbing your cashflow?

But neither should you do nothing. Jeffrey Ma—he of MIT Blackjack Team fame—commented on this in another G2E seminar. He used a blackjack analogy: imagine you have 15 and the dealer has a 9 up. Using Basic Strategy, you should hit. Anything over a 6, and you lose immediately. A lot of people in this situation favour inactivity over activity; they stand on 15 and hope the dealer will bust. That is the wrong decision.

As Ma noted, it is important “to not favour inactivity over activity. If you’re going to make a

“

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decision, it may be a risky decision, but you have to make the right decision.” He also stressed the importance of accepting you will lose, even if you’re playing a perfect strategy: “One time you get a bad outcome; one time you get a good outcome…Separating decision from outcome is a really important idea in becoming better at decision making.”

Changing fast was also commented on by Rahul Sood, CEO of Unikrn: “Somebody asked me this morning, ‘What is your roadmap over the next few years?’, and I said that was a bad question. She asked, ‘Why?’, and I answered: ‘If I plan our roadmap, as a CEO, beyond six months, I am doing a disservice to my company. We don’t know what we don’t know yet.’”

This links to Bob Ambrose’s article on page 46 of this issue of Casino Life, where Bob discusses how Bugsy Siegel was “experimenting with something new” when he developed and launched the

Flamingo in Las Vegas in the 1940s. What Siegel did was likely not popular, but as Jeffrey Ma stated, “You’re going to have to make some unpopular decisions if you want to innovate. If you want to innovate in a space that’s been around as long as gaming has, you have to be OK with upsetting some people. You can’t avoid conflict.”

To avoid conflict, I advise we all learn from what the American Gaming Association is doing. Geoff Freeman, President and CEO of the AGA stated how its campaigns “are paving the way for not just this industry’s expansion, but for creating an environment where innovation and reinvestment are more likely.”

I learned a lot from the G2E seminars. Too much to communicate in this article; call or email me if you’d like to know more. On a final note, I will leave you with a comment from Rahul Sood: “You cannot attract this audience (Millennials) without being authentic.” Are you authentic?

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Cammegh enjoy ‘best ever’ G2E show

Andrew Cammegh speaks to Rebecca Green about a very successful G2E 2015

Cammegh Ltd, manufacturer of the world’s finest roulette wheels, had their best ever show at G2E Las Vegas. Having exhibited at G2E for the past 14 years, Cammegh have seen their market share in Nevada

grow from zero, to becoming the roulette wheels supplier for The Venetian, The Palazzo, MGM Grand, The Bellagio, Aria, NewYork NewYork, Monte Carlo, The Mirage and most recently Cosmopolitan.

Andrew Cammegh, Sales Director at Cammegh Ltd said, “G2E 2015, was by far the most relevant and rewarding show Cammegh has participated in Las Vegas. Having won the confidence of some of the industry super powers, we are both honoured and enthused about delivering the best roulette

experience for players and the most secure from the operator’s perspective”.

Andrew added, “Of course, G2E is not just about the local market and as ever we were delighted to welcome visitors from casinos all over the world, demonstrating our new ‘Glass’ Billboard Displays, our new Mercury 360 ‘Halo’ feature, Slingshot, EyeCard and our unique roulette added value side bets, Lucky Symbols and Spread Bet Roulette”. When asked about new business, Andrew added, “The show (G2E Las Vegas) has become a great place to do business, and we received orders and serious enquiries for products across our entire range, from a mix of OEM’s, land based operators and on-line casinos”.

Cody Aughney, Sr. Business Analyst, Gaming Operations, MGM Resorts International and Andrew Cammegh Sales Director Cammegh

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Outsiders to the foreBringing people into casinos at a senior level from

other industries: Paul Sculpher

It’s never difficult to find someone in the casino industry who believes that the only way to

become a serviceable senior manager is to do your time: 10, 15 or 20 years at the coalface can be perceived to be the only effective route to being able to handle the varied demands of running a casino operation.

The truth however, is that there are an increasing number of senior managers who have entered the casino industry from a completely different sector, the assumption being that management skills are transferable between parts of the leisure industry and that if you can manage the people who have the specific knowledge of the product, and understand what makes a leisure business tick, half a career spent working the staff level roles isn’t necessary to do a good job at a more senior level.

With the growth in the land based casino sector worldwide, this is going to become a more and more pressing issue. There are only so many people ready to make the step up to site management, and with casino development outstripping many other sectors, these managers have to come from somewhere. A couple of UK companies have been particularly active in the sphere of introducing management into casino from external sectors, and I spoke with three of the people at the centre of the process.

Ian Woodward, Group HR Director at Caesars Entertainment UK (formerly LCI) has filled a couple of key roles with people who had never worked in casinos before—the Venue Directors of his Alea Nottingham and Empire Leicester Square properties, Mark Hands and Peter Turpin.

“The potential for deploying people from outside casinos is tremendous. While we have some fantastic Venue Directors who’ve worked their way through

the casino hierarchy, our businesses are multi-faceted operations and there’s a lot more to running one than simply understanding gaming. The best casino Venue Directors are those who understand how every element of the customer offer fits together to make a

consistent, integrated customer experience and there are a number of ways to pick up that level of experience and understanding”.

Some of the issues around bringing people into the business from outside revolve around historical factors—notably in the UK, personal licensing. In the old days of Section 19 certification, time had to be served, as a prospective manager worked their way through the licence levels, and this could tend to embed a reticence into people as to what was required to run a casino business. Ian commented, “it’s frustrating when you occasionally hear a viewpoint that only people who have worked their way up from being a dealer could operate a casino. We understand that table gaming is the key to our bottom line, in terms of numbers, but having all departments working together and delivering a consistent experience is the key to a quality service proposition, and that’s the long term future of the business”.

It would be no surprise to learn that there has been resistance to newcomers, although perhaps it hasn’t been as pronounced as one might expect. Stuart Bowker, Regional Manager for Rank’s northern G casinos and having come out of the restaurant trade (notably a globally recognised operator with over 600 outlets in the UK) has seen a limited amount of resistance. “I did hear some rumblings in the early days of switching over to casinos, but mostly from the more junior management. My job is, to a large extent, to manage the managers and to do that I don’t need to have an in-depth

Steven Jackson & Paul Sculpher, Co-Directors Gaming Recruitment Solutions

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knowledge of the games from day one”.Bowker also recognises that casino operators are

collectively selling an experience, not just a product, and drew some parallels to the type of issue that cross boundaries between the sectors. “There are plenty of situations where, whether it’s casino or restaurant, the same sort of issues can compromise the customer experience. It’s just as frustrating to go into a restaurant and be told there are no available tables due to staff shortages as it can be in a casino environment, and my job is to manage those situations. With every leisure customer, I like to think they have a “rota” of leisure experiences, and it’s my goal to make sure a trip to the casino pops up as often as possible on that rota—much the same as it was when I was in the restaurant trade. The skills to deliver that goal have a lot of common areas”. Rank have also brought a number of senior managers across from Mecca, their Bingo division, where of course there is a relatively high degree of familiarity. But Bowker is a good example of someone from a completely different element of the leisure industry making it work in casinos.

At site management level, there are other challenges to deal with. Mark Hands, Venue Director of Alea Nottingham (one of Caesars Entertainment UK’s properties) and previously a veteran of the hotel industry, told us about his experience. “To begin with, I could have resigned pretty much every day,” he told us. “The learning curve was pretty steep, and although I was always confident that I would perform well in the role, it was a challenge to convince all of the senior team that a lack of knowledge about the specifics of gaming wasn’t going to cause a problem in my doing my job. My approach to service was perhaps something a little new to them as well—when I started, the general approach was that most questions from customers were answered with “no”, and that’s something I was keen to change right away”.

It’s certainly fair to say that historically the casino business has been pretty hierarchical, and one of Hands’ objectives was to empower his team to make good decisions for the business. It makes sense to have the specialists in the various areas, particularly gaming, use their experience and instincts to maximise both returns and customer service, although sometimes this needs a helping hand—Mark mentioned that one of his early priorities was to simply have every customer greeted with a smile, something that I think we all can say from experience may not be as highly prioritised as it should be in all sites. A new entrant to the business may not only be in a good position to see these issues, but is likely to be more willing to challenge the status quo.

All three of the interview subjects for this article mentioned the potential for “blind spots” within people who have been in the industry for many years, and this is the flipside of relative inexperience in the gaming industry—the ability to look at things again from a semi-outsider’s point of view. A perfect example was Mark Hands’ retelling of his experience in his first trial visit to Alea Nottingham, as an “undercover” casino visitor when he was applying for the Director role. He was given a £5 chip at the end of his restaurant meal—so far, so familiar to casino operators as a standard promotion. However, he went to play the chip, and of course lost it in one spin. As a result of that, in Alea now, new restaurant customers don’t get one £5 chip, they get 20 x 25p chips, with staff instructed to accept these chips on all games. As a result, they are likely to get an idea of what it’s like to win as well as lose on the tables, and might therefore develop an idea of what’s fun about gaming. These sort of insights, and many more besides, comfortably offset the lack of direct gaming experience in an environment where a good number of the senior team have that critical gaming experience in any case.

So how do operators find the right people to bring into the experience? Going back to Ian Woodward of Caesars Entertainment UK, it’s not as easy as it might appear. One challenge is the fact that running a large multi-faceted site is a fairly well rewarded occupation, so the search will involve some pretty senior operators—unfortunately, in many cases, operators who feel they have done their fair share of late nights and weekends, a working pattern that is vital to any casino operator at any level. “We’ve had people drop out at the eleventh hour when they realised we were serious about the need for some unsociable hours,” Ian told us. “It has taken time to find people who have the skills and experience to run a site with 200 or more staff and a very significant bottom line, but who are still willing to show up at peak times and get involved in the level of interaction that our bigger players require”.

In summary, then, whether existing casino management like it or not, there is going to be an influx of people at senior levels who simply haven’t “done their time” on the casino floor. It may go against the grain for a somewhat blinkered few, but most will realise that as casinos grow and continue to ease their way into the mainstream leisure market, the skills needed to operate them are relatively transferable between sectors. The real naysayers should recognise that this goes both ways too—an outstanding 10 or 20 year veteran casino manager is in an increasingly good position to move into an equivalent role in other sectors. The opportunities are out there…

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The Buzz This Year at G2E, “Millennials.”

Those “M’s” and all things social…They just happen to be my students. Bob Ambrose

Table gamesolutions

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I am excited that the gaming industry is studying the next generation of customers. Quite frankly I am bored with my baby boomer counterparts.

Those “M’s” are 80 million strong; according to the US Chamber of Commerce. This is the first

generation that has grown up from diaper to “cap and gown” centered in a planet sized evolution of technology.

They are also my students. Not all 80 million! But I do have a microcosm of multi-cultural 18-30 year olds that don’t like being generalized. I get it! As a child of the 1960’s in the US I felt the same way with the entire “flower-power” hippie-generation tag I had to bear.

It is easy to become immersed in the generational clutter as we study the “M’s,” and look for those common denominators that make it easier for us to market to them. Remember once you establish the generalities; there are more layers that require specific analysis based on region, competition and general economics. It’s not a one-size-fits-all solution.

My students enjoy expressing themselves on this topic. Here are a few things they had to say… “…My generation doesn’t care about gambling posts on social media. They do care if you post that you were in the biggest name brand hotel and went to the hottest night club.”

“In simple terms it is about our image…” “If casinos and resorts want to attract our

attention then they need to continue to be innovative…”

“…In order to keep our attention, a property has to have options. If a casino is multifaceted it not only attracts millennials but also keeps them engaged. You can build brand loyalty; however this does not mean that brand loyalty will stay.”

“As Millennials we just don’t want to look cool in front of other people, we also want to be cooler than other people. That is why we are willing to spend money on overpriced alcohol and cover fee onto a nightclub. I don’t have strong feelings for gambling because I don’t see other people my age playing at the tables or slots.”

Table Games do interest them but some tell me they feel intimidated by the “older” folks at the tables. I didn’t know I was so intimidating! Hey Marketing department…Come up with an idea!

When Billy Wilkerson was planning what later became known as Bugsy Siegel’s Flamingo, we know he was experimenting with something new.

The property:“…It had to provide an oasis for people who did not wish to gamble.”

“…A luxurious home-away-from-home, an insulated world of fine dining, high quality floor shows and outdoor activities.” (From the book, The Man Who Invented Las Vegas, by WR Wilkerson)

Maybe Billy gave use the benchmark that appeals to all generations. Generations seem to have no boundaries when it comes to eating and sleeping. It is about the “experience” it takes place in.

Everything we apply beyond that benchmark that Billy set is based on the current social “environment” of the times. Simply said; the lure of gambling is fluid and marketing to each new generation will be a challenge.

We know that first “M’s” have to experience a property and connect with the brand identity?

We will continue to see a great deal of experimentation as properties look for that right niche that defines the next generational interest.

We know the casino and hospitality environment has radically changed in the past decade. Gaming floor sightlines are now woven among non-gaming experiences. The design has gone from an inward cavern of dark smokey rooms to an arcade-like outward presentation of flashing technology, scattered within socially designed zones. These zones offer food, beverage, a party atmosphere and the chance to be seen with the help of social media.

Perhaps we need a John Lennon? That cultural icon from my day (75 yrs. old this year) would have been very relevant with Millennials. He has been quoted using this phrase, “Life is what happens while you are busy making other plans.”

Perhaps this quote would be better Millennial served today if it read….

“Life is what you put on social media while you are busy doing other things to be put on social media.”

Bob Ambrose, Instructor Gaming & HospitalityCenter for Hospitality & Sport Management Drexel University. The Dennis Gomes Memorial Casino Training [email protected] @bobambrose

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Still The Forgotten GameHow and why casinos and manufacturers are

throwing away money. By Victor H Royer

If I were to tell you that there is an existing casino slot machine game that has a

wide following among players, is inexpensive to manufacture, contains a high yield for the operator – traditionally somewhere between 8% and 14% house hold – but one that is being substantially ignored by both gaming manufacturers as well as casino operators, would you know to which game I am referring?

This game has been a staple of casinos for a very long time. It is a Video game that is easy to play, commands a wide audience of players numbering in the hundreds of thousands, but has always been treated mostly as an afterthought. Yet, this game is loved by casino players – but has remained largely without innovation for a very long time. And almost totally ignored by everyone – except, that is, it’s fervent and ardent fans and players!

While slot manufacturers have invested millions in new game development, designs, manufacture, and innovation, at the 2015 G2E not one manufacturer featured this game! (At least not that I could find) This is particularly significant in the light of the recent economic conditions, and the devastation that has impacted the gaming industry nationwide as a result of the recession.

As of the third quarter of 2015, the gaming industry is finally emerging from that recession. Slowly but surely, all current and recognized economic indicators point to successful growth throughout 2015, and into 2016. While it is true that not all gaming jurisdictions will see equal

growth, or equally sustained economic recovery, the fact nevertheless remains that both gaming equipment manufacturers, and gaming operators, can collectively look toward a much brighter future. Signs of this were already seen at the 2015 G2E gaming convention in Las Vegas. Nevertheless,

there is still a ways to go before complete confidence and security is restored.

Today, everyone – so it seems – is looking for a way to not only recapture profitability at pre-recession levels, while reducing operating costs and manufacturing costs at the same time, and also maintaining the momentum of new casino and casino equipment innovation. To slot manufacturers this means continued investment in new games, new technology, and increasingly more complex gaming machines and options. To the operator this means more deals, more complex deals, more choices, more competition, and often more costs – especially with the M&A’s that have created giant multi-national gaming conglomerates among OEM’s as well as Operators.

Such ongoing growth and innovation is always welcome in any business, including slot manufacture, and gaming and casino operations. Slot manufacturers in particular are finding competition fierce, not only in innovation and machine design and manufacture, but also competition for casino floor space. Many of the industry’s giants have seen significant erosion in the percentage of the casino floor which their products have traditionally commanded. While competition

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is not necessarily a bad thing, under the still ongoing economic challenges capital investment in slot machine innovation and manufacture does have a meaningfully significant impact on any manufacturer’s bottom line.

It therefore seems increasingly more puzzling that while manufacturers are investing so much time and capital in the manufacture of ever increasingly more complex slot machines – all of which are way too heavy on entertainment and not enough on the “gamble” part of the equation (more on this in other articles) – meanwhile this one tried and true staple of casinos with an already established player following and a high profitability yield – remains completely overlooked and forgotten.

So what is this forgotten game? Video Keno.If you’re NOT surprised at this, then my question

to you is this: Why have you not invested in the development of

Video Keno? And if you’re an operator, my question to you is

this: Why do you not carry more Video Keno product

on the casino floor, and why do you not ask your gaming supplier for new Video Keno innovations?

If you ARE surprised at this, how is it that your gaming research has missed this incredibly valuable fact? And, if your research has not missed this fact, then why are you allocating so much money, time, and effort into investing for the creation of hugely complicated and expensive slot machines, many of which will not last on the casino floor beyond the trial period, or disappear shortly thereafter – while tens of thousands of enthusiastic Video Keno players still have a product that is essentially 30 years old?

Why is everyone ignoring Video Keno? The short answer to this is – No, not everyone. IGT is still by far the preferred leader in video

keno. The Game King series is a staple of all casinos, and every multi-game console has at least one of the great IGT video keno games in it’s menu. Bally also had some video keno games, but of late seems to have let them disappear from it’s catalogue of offerings. Maybe not altogether, but I haven’t seen a Bally video keno game in any casino for a long time.

For a while, about 10-20 years ago now, there

were other manufacturers who tried video keno. Of those only WMS and IT had any real tries at this. But all never quite succeeded in the way that IGT’s video keno games have, and still are. If truth be told, IGT’s video keno games are by far superior to any new innovations that has ever been tried. That’s because in THIS game, IGT actually got it right – it’s the “gamble” part of the equation that makes this game a success. Not the “fruit” or “cartoons” or the so-called “bonuses” and so on in other “new innovations.” Players of video keno are gamblers, pure and simple. They enjoy the game for what it is – the primeval risk vs. reward. It’s the challenge of overcoming the machine’s math and odds, and coming out a winner.

This is the thrill of victory that not one single manufacturer today understands – and that’s why they are always building more and more machines that are “entertainment”, but not much on the “gamble.” And that’s also why today’s “meat and potatoes” of the gaming industry – the “Millennials” – are being left out, and why they rather go to nightclubs and day clubs instead of the casino. Because no one has TAUGHT them HOW TO GAMBLE, and WHY IT IS A GREAT THRILL.

These players – millennials – are used to the “entertainment” part of the game, because they grew up with game consoles, iPhones, iPads, and the Internet. So, “entertainment” in gaming is what they understand.

But no one has shown them the THRILL OF GAMBLING!

And that’s why they don’t understand it – and so they don’t do it. At least not as much as they would, if they had games that provided that thrill.

And video keno is the perfect game for this.No, it’s NOT boring – there is a lot more to this

game than most people understand, or give credit where it’s due.

It’s all a simple matter of perspective – the “challenge” of it is what provides the thrill, and also the reward.

So, don’t change the game. Keep what you have, but make it more visible, and promote it. And, when you DO make innovations, remember not to fudge with the formula. Don’t take the “gamble” out of the “gambling games.” And THAT is what real innovation in casino gaming SHOULD be.

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