By Frank Legato   Fri, Dec 14, 2007

Two years ago, South Florida looked like one of the new hot spots of the gaming industry. When the law was passed permitting racetracks and jai alai frontons in the region’s two most populous counties to add slot machines, analysts predicted the new racinos would generate revenues well over the industry average, some putting the estimated take at more than $500 a day per machine.

The prospect of slot machines at parimutuel facilities—the first competition to Class III slots aboard cruise ships operating in waters off Florida’s coast—attracted some big names in gaming, with companies like Magna Entertainment, Isle of Capri and Boyd Gaming buying into the state’s nascent slot industry.

Magna’s Gulfstream Park was the first to open up a slot facility in November 2006, followed a month later by Mardi Gras Racetrack & Gaming and in April 2007 by Isle Casino and Racing at Pompano Park. Boyd Gaming bought Dania Jai Alai in Dania Beach, announcing plans to transform it into a racino full of resort amenities.

The rosy predictions would prove to be anything but, as slot revenues have been dismal for the first year. In fact, the per-day slot revenue at Gulfstream Park—one of the nations’ premier thoroughbred racetracks—were the lowest in the nation for commercial casinos during the second quarter, at $74.

The other two new racinos did not fare much better, managing in the best months to match industry averages of around $200 a day in per-machine revenue—a far cry from initial projections.

Meanwhile, the Class II Indian casinos operated by the Seminole Tribe of Florida have continued to hum right along, with world-class resorts such as the Hard Rock casinos in Tampa and Hollywood drawing patrons from the core of the market targeted by the parimutuel facilities. Innovative system technology resulted in the slots themselves playing much like their Class III counterparts, and with the Hard Rock theme and resort amenities thrown into the mix, the Seminoles have left the parimutuels struggling to compete.

Tough Playing Field - Part of the reason the racinos have had trouble competing with the tribal casinos is what parimutuel operators—and many lawmakers who supported slots—have complained is a decidedly un-level playing field. The parimutuel operators have to hand over 53.5 percent of their slot revenues to the state, while the Seminoles have kept every penny of their estimated $1.4 billion in annual gaming take.

The Seminoles have used that money to create enviable resort amenities at their properties, while the parimutuel operators have settled for convenience-style slot facilities in a market where for many, it is just as convenient to opt for the Indian casinos as it is to go to the racinos.

As if those woes weren’t enough, last month brought a new reason for parimutuel operators to reach for the antacid—the prospect of full-blown Class III Seminole casinos.

After years of failed negotiations and a threat by the federal government to take unilateral action, Florida Governor Charlie Crist signed a gaming compact with the Seminoles that will give the tribe the right to replace thousands of Class II slot machines at its seven casinos with traditional Class III games.

In addition to Class III slots, the compact gives the tribe the right to add banked card games including blackjack and baccarat to its casinos—a provision of the agreement that is likely to send state lawmakers, and possibly the parimutuel slot operators, to court in an attempt to alter or block the agreement.

The 25-year gaming compact also allows for six no-limit poker tournaments per year, with 70 percent of revenues going to charity.

The deal pays the state $50 million upon approval by the federal government, with graduated annual payments of at least $150 million by the third year. After the third year, the state would get a cut of gaming revenues.

The agreement also gives the Seminoles a guarantee that the deal with the state is void if existing non-tribal gaming is expanded beyond the current parimutuel facilities in Broward and Miami-Dade counties, which both were approved for slots in 2004. (Miami-Dade voters, who rejected slots in 2005, get to vote again in January, and are expected to approve the machines for parimutuel facilities there.)

While Crist initially said he would send any tribal gaming compact to the legislature for approval, he changed his tune once the federal Department of the Interior threatened to unilaterally grant the Seminoles the right to Class III slots under the Indian Gaming Regulatory Act—without a penny going to the state—if no agreement was signed by November 15. The governor’s position now is that the compact need only be approved by the federal government, and that the legislature has no right to approve or kill the deal.

Florida lawmakers do not agree, so the signing of the compact—something the Seminoles have been seeking for 16 years—likely sets up what could be a protracted legal battle before the Seminoles will see Class III slots or table games.

State lawmakers from both parties have sued Crist, not only stating that any gaming compact requires legislative approval, but that the compact itself is illegal under Florida’s constitution. The state House has already retained former House Speaker Jon Mills to study all the legislature’s legal options.

“We have asked our attorney to review the details of the compact to examine the legislature’s legal options,” House Speaker Marco Rubio said in a statement. In a separate statement, Senate Democratic Leader Steve Geller, a close political ally of the governor, said Crist has “left us no recourse but to file suit to stop this folly.”

One of the main sticking points for the lawmakers is the inclusion of banked card games in the compact—games which were not included in the parimutuel gaming law and are not legal elsewhere in the state, as is required under IGRA for tribes to qualify for Class III games. Geller also criticized the provision that bars further expansion of non-tribal gaming beyond the two large South Florida counties.

“This compact delivers billions in windfall to the Seminole Tribe while the state ends up losing money,” Geller told South Florida’s Ledger newspaper. “The governor may be willing to accept such a poorly negotiated deal, but it’s highly unlikely that the legislature ever would have approved it. And I’m willing to bet that the courts will back us.”

Lawmakers are not the only ones threatening lawsuits. Dan Adkins, president of the Mardi Gras Gaming racino in Hollywood, said he is considering suing Crist over the compact as well, because it gives the tribe an unfair advantage with more games, and limits the potential growth of parimutuel slot gaming. He notes that the parimutuel slot facilities give the state more than half their revenues in taxes, a far cry from the fees the Seminoles will pay, particularly considering the revenues already generated by the tribe’s casinos.

“The good news is, I don’t believe it will ever take effect,” Adkins said of the compact.

Ironically, observers noted that the compact may actually be supported by anti-gaming lawmakers, because of the provision preventing further expansion of non-tribal gaming.

Positioning to Compete - While the timing of the Seminoles’ move into Class III gaming remains cloudy, parimutuel gaming operators nevertheless know they need to position themselves better to compete with the tribe.

The owners of the Broward County parimutuel operations say the tax rate, while an important part of their slow start, cannot be solely blamed for the dismal showing of their slot offerings for the inaugural year.

“We didn’t have the right slot product,” says Steve Calabro, corporate vice president of gaming at Magna, parent of Gulfstream Park. “We didn’t have the right denomination mix. For instance, we opened with no penny or 2-cent games. We’re changing that. We’re presently at 15 percent-18 percent of the floor with those denominations, and eventually they will be north of 30 percent.”

According to Calabro, besides the game mix, marketing of the casino has been problematic, and the casino operations were hampered by a start-up staff that was short on casino experience.

Calabro, formerly the longtime vice president of marketing for Trump Plaza in Atlantic City, is only one of the seasoned casino veterans Magna has brought on board to turn the fortunes around at Gulfstream Park. “We have a few other people in casino operations with 10-years-plus experience.” he says. “Also, I’ve embarked on an effort to really fast-track the learning curve for the marketing and operations team we have at Gulfstream. They’re sharp and intelligent people; they just need to learn the casino side better. We’ve also hired an experienced ad agency, M&M Advertising, which represents hundreds of casinos nationwide.”

This team will oversee a casino floor at Gulfstream that will soon look a lot different than it does today. In addition to bringing in more penny and 2-cent multi-line video and reel slots, Calabro says he plans to capitalize on a game offering that currently can’t be found anywhere in South Florida, and is currently impossible in the Class II Seminole casinos—high-paying video poker.

“Our casino component will absolutely have the best video poker offering in South Florida, hands down,” Calabro says. “We’re going to bring in all the Action games—Triple Play, Five Play, 50 Play, 100 Play—in addition to all the traditional poker games. We will have Spin Poker. We’ll have Super Times Poker, which is the hottest video poker game in the country right now.

“Not only will the selection be the best, but the pay schedules will be what serious video poker players look for. If you play video poker in the Northeast, even if you play in Vegas, you’ll want to play in South Florida at Gulfstream.”

Calabro says the two floors of Gulfstream’s slot operation will be reconfigured to make maximum use of the new game mix. While the second floor has been very successful, he notes, the first floor has lagged behind. “We’re going to change the first floor into a mixed-use area,” he says. “It will be a unique space in that there will be three casual restaurant offerings, a nice simulcast lounge and 170 video poker machines. The rest of the machines will be the best penny and 2-cent games we’ve been able to assemble—penny Wheel of Fortune, 2-cent Cashman, a lot of IGT nine-line, three-reel penny and 2-cent games. The nickel Deal or No Deal will be the highest denomination there.”

He adds that as soon as he gets the go-ahead from regulators, he will place a minimum of four progressive video poker links on the first floor. On the second floor, Gulfstream will add a dedicated high-limit area with 40 games. “We could have fit 60, but we chose 40 so there will be comfort and lots of space,” Calabro says.

Calabro says he’s confident these measures, plus the addition of a Lifestyle Mall retail component nearby, will turn Gulfstream’s slot fortunes into the kinds of numbers that match up with one of the most beautiful racetracks in the country. “Our racetrack is very successful—it’s one of the most successful tracks in the country,” he says. “We want to bring the casino to that same level.”

Doug Shipley, corporate vice president and general manager of Isle Casino & Racing at Pompano Park, says his casino’s fortunes—which were not as dire as Gulfstream’s last quarter, but were still well below initial projections—began to turn around in July, when the state permitted ATMs on the casino floor.

“That certainly helped us,” he says. “Obviously, though, the cost of doing business in Florida is expensive, and it has you strategizing where you spend every penny. Certainly, the reinvestment rate is low here.”

The way they’ve made up for that at Pompano—per-machine revenues currently range from $200 to $225 per day, Shipley says—is through top-flight customer service, experienced casino management and a big emphasis on quality food and beverage.

“We’re particularly proud of our guest service rating,” Shipley says. “It’s consistently above 9 on a 1-10 scale in exit interviews. We’ve invested a lot in our guest services training modules, and on human resources. We have a good, solid management team—each individual has well over 10-15 years experience, either in Las Vegas, Atlantic City or one of the other Isle of Capri properties.”

On the F&B side, Isle brought in celebrity-chef restaurants and other upscale dining. “We brought in Luke Paladino, who did restaurants for Steve Wynn at the Mirage, and three at the Borgata,” says Shipley. “We brought him here to design our Italian restaurant, Bragozzo. It was just rated one of the top 10 restaurants in Florida. Our steakhouse also is top-notch. We’re close to the Palm Beach market, and we’ve been well-received by that market.

“A slot machine is a slot machine. We all have the same Class III machines. What separates us are our F&B offerings, which we are really proud of.”

The Wild Card - Both Calabro and Shipley say that initial projections on per-machine revenues were simply unrealistic at $500 or more, and both look forward to vastly improved results in the coming year. “2008 will be Gulfstream Park’s year,” says Calabro.

Adds Shipley, “We’re bullish, because when you look at the population base and the number of positions, even if Boyd comes in with 2,000 machines, it still looks to be a healthy market.”

The wild card, both say, is the Seminoles, and the competitive environment with which the racinos have to deal. “There is an un-level playing field between us and the Seminoles, and the competitive climate presents a vast imbalance right now,” says Shipley. “We hope that gets righted.”

Calabro adds that even without Class III slots, the Seminoles hold an advantage because of the racinos’ 53.5 percent tax rate. “We’re in a situation where our tax rate limits us as to the promotions we can offer our customers, and 20 minutes away, the Seminoles can do pretty much anything,” he says.

Boyd Gaming, meanwhile, is holding off on any announcement on groundbreaking for a slot facility at Dania. “We’re certainly watching the Class II/Class III situation, but in any event, we’re carefully and thoughtfully studying the market,” says Boyd corporate communications VP Rob Stillwell. “Although this market has great potential, we want to make sure we don’t run into the same difficulties facing those who are open now.”

While all of Broward County’s parimutuel slot operators will be closely monitoring the legal battles ahead for the Seminoles, and the tribe’s Class III situation, all are working with the legislature to level the playing field for South Florida gaming. “We’re lobbying the legislature now to let them know how difficult it is right now with the playing field,” Shipley says. “Even without Class III Seminole gaming, we have a problem with it not being a level playing field, and all of the parimutuels are active in the legislature to do something about it.”

Florida lawmakers, for now, seem to be in the parimutuels’ corner, universally rejecting the new Seminole compact and vowing legal action to block it.

Whether or not the parimutuels get the relief they need is something that remains to be seen.

By Dean Macomber  

By Dean Macomber and Roy Student  - Click here to jump to Part I

It is conceivable that a player could play a game indefinitely. In other words, today a player sometimes does not want to leave “his machine” for fear someone might win “his jackpot.” Another player may want a change in environment; another is disappointed “his” game is occupied.

All of these issues could be remedied by a central server-based system. For example, the player could designate “his game” within the system and the system could then download that game to wherever the player wanted to play. The player could conceivably start, stop, move, leave and return during a day, over a multiple-day trip, or even between trips or casinos in a given chain, and still have access to his game, stored in the library of games in the central server—any time, any place.

Eliminating the Mis-alignment Between Players and Games - The polar opposite issue involves players who do not know what they want to play. Neophytes are forced today to select from a bewildering array of slot machines that sometimes even the casino’s own employees do not understand. To borrow from table games, this is often a “crap shoot.”

Rather than wander through a sea of slots, a central server system environment would allow a player to stop at any machine which, in turn, could then prompt the player through a series of filter questions to lead him to the game types he would enjoy. This would help players avoid inadvertently playing a machine other than the style they’re looking for and being disappointed by the results. For example, this could prevent a play-to-win-to-play player who was really looking for frequent, small-to-medium size payouts by accident playing a play-to-win-styled game with more frequent jackpots but much fewer small payouts. Bound to be disappointed, players in this situation often end up consciously or subconsciously blaming the casino and vowing never to return.

For those playing a given game and having questions about it, central server systems would also have the ability to provide more detailed answers or help.

Neophyte or experienced player, with a central server system, the player will be able to develop and choose the game of his or her liking in terms of denomination, type of game, jackpot size or other factors. In fact, at its extreme, as players became more knowledgeable, they would be able to choose the par percentage, hit frequency and volatility specific to their preference at any point in time.

It is not too far-fetched to envision a situation where, through a simple game generator, the player could develop his own game to play.

Reducing the Boredom Factor - A central server system will also help to keep the players playing longer by preventing them from getting bored. Rather than having to get up and look for something else or somewhere else to play, they can stay at their game and flip through any number of game options.

Besides a standard library of games, the boredom factor could be reduced further by casinos morphing their casino and the games offered to fit in with various holidays, celebrations, new movie introductions (e.g., play the latest “Die Hard” slot machine), new car models (the jackpot being the new car, of course) or any other promotion or event because of the flexibility of central server systems.

De-limiting and Unrestricting Jackpots - A central server system may also provide new opportunities for jackpots. Rather than having to link jackpots within a given physical location, now jackpots can be linked to any and potentially every player in the casino. The central server could presumably homogenize play at various types of games to create larger, communal jackpots or jackpot pools that could be greater or hit more frequently than the jackpot accumulation structures now permit.

Presumably, going back to the aforementioned linking a game to one player so it is “his game,” a player could have his own jackpot accumulator that could hit over a multitude of trips. The same theory could be applied to player club tiers, patrons on a bus charter, a convention in the casino for three days, “clubs” that the casino forms (e.g., all players from City X) and the like.

Jackpots from any machine could be paid in cash and/or the player could choose from a large catalogue of other options that they could page through using one of the plasma screens located on the device. This could allow the casinos to sell advertisements and/or promote these products and services and earn income from doing so.

Expanding the “Sense of Winning” Zone - As for promoting the sense of winning, progressive meters could be displayed on the individual machine (that knows Player X is playing for Y progressive jackpot or jackpots, and show a picture-within-a-picture progressive meter), overhead displays using traditional row signage, on walls or ceilings using newly designed signage to appeal to a greater geographic area and number of players, or in a progressive “totem pole” in a central location that depicts all of the progressive jackpots that are operative, which a player can then download to any machine in the casino.

This could lead to slot machine tracking displays much like the roulette and baccarat digital tracking displays that display the recent outcomes of the game. Since the games are random, the casino risks very little to nothing in showing this information, while appealing to the player’s psyche of being able to beat the casino.

Reducing the Number of Dormant Games - To reduce the number of “boxes”/machines not being played, dormant games in the central server library might be displayed that show the number of win/loss decisions over, for instance, the last 50 handle-pulls. A player could download the games he thought might have the best chance of winning. As long as the game cycles are random and handle-pull decisions are independent, there is little to no risk to the casino in merchandising the games in this manner.

Expanding the Table/slot Marriage - Speaking of table games, virtually every table game is being developed into an electronic gaming device. These hybrid table game/slot machines are popular with new players who may want to learn the game without the embarrassment of playing with more seasoned players.

Central server systems will provide even greater flexibility to game designers seeking to morph table games to electronic devices and then merchandise them. All of the jackpot, progressive and promotional aspects previously discussed, for example, could be adapted to these table game look-alikes. It is possible again that table-based gaming devices could be clustered into a table area so a couple could play blackjack and roulette side-by-side either through a digital game or a central dealer-based game where the picture of the roulette wheel in this case could be shown on the game or a larger communal plasma screen.  The options for new game ideas are boundless.

Global Operations - International operations (i.e., those outside the United States) and cruise ships can benefit from central server systems as much if not more than their domestic and land-based brethren. For example, cruise ships and many international casinos are smaller than their U.S. counterparts. But, despite the small number of units, a cruise ship or small international casino could have a game library as large as the largest casino in the world. The opportunity to offer thinner games could be particularly beneficial in cruise ship venues, as well as the ability to download the game to locations anywhere on the ship.

International casinos also often cater to players from different countries who speak different languages, have different cultural prerogatives and bring different currencies. A central server system could download any game in any language and allow play in any denomination the player preferred. And games could be developed whose coloration, symbology and game structure appealed to a given culture.

Ma rketing Prowess - Perhaps one of the greatest hidden advantages of a central server system is the ability to capture and analyze so much more information about players and their behavior. If nothing else, the player will be voting for the popularity of games and game attributes via the proxy of their play, not the availability of a game. More will be learned about individual player preferences regarding game features, payout cycles, jackpot amount, playing environment issues and the benefits of catering to groups of connected interests.

Since the player will be weaned over time to video screens, the machine will presumably have greater individual merchandising ability. In other words, instead of sending messages through a small reader board near the player’s club card insert, the casino will have the entire award and belly glass area that could now be larger, high-rendition plasma screens (or their derivative) that have excellent graphic ability to send messages. These same screens could project live television (either from the standard television or via internal casino feeds), race and sports book events or casino promotions and commercials. The flexibility and marketing potential of these screens is virtually endless.

Additionally, because so much more information will be monitored by the casino at any given point of time, there will be great opportunities to better promote and magnify the sense of winning.

An announcement or promotion of a winner anywhere in the casino could be fed to each and every game in a given area or throughout the casino. Real-time monitoring could show which games are winning and where. This could be nothing more than a curiosity item to most players, but might cater to those who are superstitious or feel that they can take advantage of patterns.

Whatever any of us can foresee for the central server system, we would suggest that once “a thousand minds” focus on this opportunity, reality will be exponentially better. Surprises await, of that we are sure.

But, What About the Skeptics? - Besides the believers, the skeptics of central server systems need to be listened to as well. Some speculate that the customers will not trust downloadable games, fearing that the casino will control the outcomes to their favor. Others speculate whether the gaming public even needs or will want the option to play an infinite number of games. Many, the skeptics say, only play three or four of their favorite game types, and in total, the gaming public only needs a couple of dozen models anyway. So, why give them more?

These and other issues will no doubt affect the introduction of central server systems and the ensuing rate of acceptance. There will be mistakes. If, for some reason, certain disadvantages cannot be changed, benefits will have to be devised that overcompensate for them.

We believe, however, the upside potential is so strong that if casinos are player-sensitive, employee-sensitive, regulator-sensitive and investor-sensitive, any adverse reaction can be prevented or overcome with good preparation, sensitivity and education.

Those mistakes that cannot be prevented will be short-lived (particularly given the ability of central server systems to change rapidly) and mere bumps in the road. Put another way, to borrow a well-used phrase, we believe the widespread adoption of central server systems is not a question of “if” but “when.”

Evolution or Revolution - Some casino owners will approach the introduction of central server systems in an evolutionary manner while others will take the risk of revolutionizing the gaming floor. This will be a good thing, since both approaches will serve the customer, the industry and those who benefit from it.

Regardless of the approach, designers of new buildings that will last for 30 or more years—much less those already operating who will need to compete with what they have—should design their gaming around the potentialities offered by central server systems. We believe that ultimately, all gaming will be operated through central server systems. Like ticket-in/ticket-out technology, this may take some time to occur and there may be some mistakes along the way.

But, all of these dynamics (and more) are part of any change in gaming. We believe that central server systems have the potential to shift what have become for too long “me-too” casino floors to much more dynamic and exciting venues.

This could not be a more exciting time. Best to plan for it now.

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 702-456-6006.

Roy Student has been in the gaming industry for 35 years and is the president of Applied Management Strategies, a global consulting 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. He can be reached at 702-523-0444.

By Roger Gros   Tue, Dec 18, 2007

Since he took over as chairman of the National Indian Gaming Commission in December 2002, Phil Hogen has been attempting to draw a “bright line” between Class II and Class III gaming in Indian Country. The task is important because the U.S. Department of Justice has periodically attempted to prosecute tribes that employ machines that seem to straddle the two classifications. In fact, he was advised by officials with the DOJ that if the NIGC didn’t clarify the situation, they would, and not in the way the tribes would appreciate.

In late October, the NIGC published a set of proposed regulations that would define the line between Class II and Class III. Even before the regs were officially published, the groups it would primarily affect announced that they would oppose them.

In a letter to the commission, manufacturers and operators contended they were not given enough input and they were not permitted to review the final draft regulations. The groups complain that the published regulations represent only a “modest” change from a 2006 submission drawn up by the NIGC that, according to the groups, “essentially destroy the Class II gaming industry.”

Hogen said the new regulations were essential to the survival of Class II gaming.

“Bingo and Class II gaming is the bedrock upon which Indian gaming was built, and its integrity needs to be maintained,” Hogen said. “With the bright line that will be drawn when these regulations are finalized, tribes may confidently invest in equipment, lenders’ concerns over challenges in this area will be allayed, and tribes will have a clearer basis from which to negotiate with states for Class III compacts.”

In the letter objecting to the regs, the groups argued that changes are arbitrary. While not as onerous as the proposed 2006 regs, the groups say the new regs don’t address the real issues.

“During this year-long process, the commission released a series of ‘matrices’ which reflected some modest modifications of some of the more arbitrary aspects of the 2006 classification proposal. While we applaud the abandonment of some of the unnecessarily restrictive time delays, and of some of the purely cosmetic demands (primarily details of screen display), we strongly believe that the fundamental fatal flaws of the 2006 Classification Standards have not been addressed.”

Hogen disagrees and points to some concrete changes proposed by the new commission regulations.

“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,” he told Global Gaming Business. “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.”

Despite the grandfather clause, the Class II industry says the commission has not made enough modifications.

“The capital requirement at the end of the grandfathering period will create a substantial financial hardship on Indian casino irrespective of the depreciation method employed by tribes or vendors on these assets,” they wrote the commissioners. “The cost of replacing even fully depreciated assets after this five-year grandfather period will be an economic burden and cripple many tribal and interdependent economies.”

While the industry says the technical standards and case law support very few changes, Hogen says there is a need to establish this bright line.

“That’s the problem,” he says. “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.”

Hogen says the tribes and manufacturers have worked closely with the commission to establish these rules.

“In 2004, we assembled a tribal advisory committee to assist us,” he says. “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.”

Even the industry acknowledges it has been an “extraordinary process.”

“The tribal gaming working group, supporting the tribal advisory committees in their work with high-level commission staff, helped achieve the common goal of producing good technical and control standards,” the letter says. “The benefit to the tribal gaming industry would have been considerable. The benefit to the federal government should be obvious, as even Chairman Hogen noted that the process should form a model for future rule-making processes.”

Hogen says the proposed regs will benefit all those parties.

“There is a difference between Class II and Class III,” he says, “and there’s a clear way to

ascertain on 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.”

The industry, however, believes the status quo is better.

“The regulations the NIGC is now considering would replace those regulations with uncertainty and stagnation, at best, and total destruction, at worst,” the industry insists. “Even in the best reading, the commission’s regulations would limit tribal Class II gaming to a very small universe of awkward games. This is not a recipe for economic survival—but one for economic disaster.”

By GGB Staff   Tue, Dec 18, 2007

Ernest Hemingway called it “grace under pressure.” Whatever you call it, during a crisis you discover what you are made of and how you respond in an emergency.

San Diego’s casinos found out what they were made of during the devastating fires of October, which caused the largest mass evacuation in U.S. history.

At their height, seven separate fires were burning in San Diego. The one that affected San Diego casinos the most was the last one to start, the Poomacha fire, which started in high winds early on the morning of October 23 and spread over 25,000 acres in its first five hours.

The first of the fires started in Witch Creek, near Santa Ysabel, and was dubbed the Witchfire. Its first victim was the town of Ramona, which the fire ravaged in the early hours of October 22.

Nearby Barona Valley Ranch & Casino on the Barona reservation was spared damage from that fire, although it came within half a mile.

“Our damage was primarily wind, smoke and air quality,” said General Manager Karol Schoen. “One of our biggest stumbling blocks was Wildcat Canyon Road being opened and closed repeatedly.”

Sunday night, things became tense. Under the direction of the fire chief, California Highway Patrol and the Sheriff’s Department, Barona slowly evacuated so as not to clog the winding Wildcat Canyon Road.

“We reached a point where they said do not let anyone go,” Schoen recalls. The property was considered very safe since it has a golf course, which acts as a fire break and bristles with firefighting equipment.  They closed on Monday and didn’t reopen until Saturday morning.

“We had people coming from Ramona and the San Diego Country Estates who couldn’t get anywhere else,” said Schoen.

They also had stranded guests from Los Angeles and Orange County. They kept them on the property and also became a haven for firefighters, CHP and deputies, feeding hundreds of first responders during the week.

Eighteen staff members lost homes. Staffers opened their hearts and collected over $25,000 for victims, a number matched by the tribe. The casino also paid its staff for the week it was closed.

“The generosity of the tribe caring for the staff was just tremendous,” said Schoen.

Casino Pauma, housed in large metal-framed tents, was evacuated and closed for a week as flames burned in the hills above it. Flames crawled through the Agua Tibia Wilderness, which has thousands of acres of gnarled, thick brush.

Pechanga Resort & Casino is near the border of Riverside and San Diego counties. It wasn’t affected by the fires, but it came through for many people.

Doris Beresford of the La Jolla Reservation, which was 83 percent burned, reported her reception at Pechanga when her family fled there.

“The Pechanga Tribal Council met us with open arms at their casino,” Beresford said. “They gathered us into their Grand Ball Room. There were hundreds—Indians from La Jolla, Pauma, Pala, Rincon, Santa Ysabel, Mesa Grande, San Pasqual and Los Coyotes. By the evening of Tuesday, October 23, Pechanga had arranged 50 hotel rooms for La Jolla’s elders and moms with young children… The following days Pechanga had arranged a total of 100 rooms for tribal members from different reservations who could not return home due to fire and smoke.”

It eventually provided 200 rooms at no cost to displaced families and firefighters. 

Trays of full-course meals, including desserts, were delivered every few hours.

The tribe brought medical technicians and health care onsite to help evacuees with medical conditions.

They delivered cases of drinks, snacks and salads to a nearby Red Cross shelter at Temecula Valley High School.

Later, the Pechanga Tribe voted to donate $100,000 to support fire relief.

Similar stories were told of Pala Casino, just a few miles away, which also opened its doors to evacuees.

The Poomacha fire spread onto the Rincon reservation. As the sun rose Tuesday, October 23, Harrah’s Casino was an oasis with fire on three sides.

It scorched 7,000 acres on the Rincon and La Jolla reservations. Rincon lost about 60 homes, including many older buildings and the village Catholic church.

By dawn the casino had closed as a gambling facility, and was operating as an impromptu evacuation center for nearly 400 people, many of them tribal members, but others stranded community members.

In once instance, a migrant family stayed in their car in the parking lot, afraid to go inside until employees knocked on their car door and invited them in.

Viejas Casino, a few miles from Barona and also not threatened by flames, offered firefighters a place to rest and eat at its recreation hall and buffet.

The small Golden Acorn along Interstate 8, a casino and truck stop which has no accommodations or buffet, provided diesel fuel to firefighters.

At Valley View Casino in Valley Center, Joe Navarro, head of the business committee that runs the casino, oversaw efforts that kept the fire from entering the complex and also saved a neighboring house. The reservation’s fire department was deployed elsewhere throughout the area doing structure protection.

Navarro, a former police officer, was fortunate that the skeleton crew remaining included a former firefighter and an active volunteer. “We knew the prevailing winds would bring it to us eventually, so we were prepared,” he said. The director of reservation services, buffet manager, transportation manager, slot operations manager and valet manager worked together to keep the fire at bay.

They had placed hoses in strategic locations and were able to save their human resources and construction trailers. Once the firestorm passed, facilities and security staff battled hot spots all night long.

The casino provided meals and a place for firefighters, law enforcement and military to rest and eat. The buffet’s head chef worked for several days straight cooking steaks and other food for first responders.

According to Navarro, “We fed folks on a 24-hour basis and served over 3,000 meals to emergency services personnel in our team member dining room.”

On the Friday after the fire passed through Valley Center, Valley View offered a free meal for any local person who would contribute $5 to fire relief. Local residents mixed with National Guard, deputies and many firefighters. Many people walked over to offer thanks for helping them in their hour of need. Over three days, Valley View raised $60,000 for fire survivors.  For many of the casinos in San Diego, it was their finest hour.

David Ross is a regular contributor to Global Gaming Business and editor of the weekly newspaper, the Roadrunner, in Valley Center, California. Ross was evacuated from his home in the middle of the night and spent nearly a week in his office, keeping town residents apprised of the situation via an online blog.

By Alan Campbell   Tue, Dec 18, 2007

In the U.K., a study published in September into the prevalence of gambling has shown that the percentage of the population suffering from problem gambling has remained roughly the same as eight years ago, the last time an examination was conducted.

Conducted by the National Centre for Social Research at the request of the Gambling Commission, the regulatory body for casinos, bingo clubs and gaming machines, the Gambling Prevalence Survey 2007 was the first major study of attitudes on and the prevalence of gambling in Great Britain since 1999. It questioned 9,003 people between September 2006 and March 2007 about 17 types of gambling, from scratch cards to casinos, and looked at attitudes toward gambling, the popularity of different types of gambling and the prevalence of problem gambling.

The survey found that about 0.6 percent of the U.K. gambling population, or roughly 250,000 people, could be considered problem gamblers, which is worse than the rate of Norway but similar to that of Canada, New Zealand, Sweden and Switzerland. In addition, this percentage was lower than that of the United States, Australia, South Africa, Singapore or Hong Kong.

The findings of the survey came as a surprise to many in the industry, including Sir Peter Dean, chairman of the Gambling Commission, who stated that, while 99 percent of people who gambled did so harmlessly, he was relieved at just how low the figure was. A rise was expected due to the availability of new forms of gaming, such as fixed-odds betting terminals in betting shops and online gambling, that have appeared since the previous study.

“There is a significant number of people who do gamble online,” said Dean. “We’ve been tracking those, but the key message is that, overall, there has been surprisingly little change either in the number of gambling participants or the number of problem gamblers since 1999.

“We remain concerned that there are still over a quarter of a million adults who are problem gamblers, and 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.British-based gambling operators must now comply with strict and detailed social responsibility obligations, and we will monitor how these requirements are met.”

Online Interests - The survey revealed that internet and other new forms of gambling have not led to an increase in the total numbers of people with gambling problems. In fact, it showed that, due to a drop in National Lottery sales, the total number of people gambling fell from 72 percent in 1999 to 68 percent today. In addition, the study found that the lottery, still by far the most popular form of gambling, saw its percentage of the population taking part drop from 65 percent for the previous study to 57 percent today.

The survey—set to become a regular occurrence, with the next scheduled for 2010—found that gambling is not dead despite the decrease in total numbers of people gambling. The total numbers of people participating in all other types of gambling, excluding the lottery, was up by 2 percent from the 1999 level of 46 percent. However, only 6 percent of those questioned had gambled online, while 3 percent had used fixed-odds betting terminals and 4 percent gambled in a casino.

“We are delighted that the Prevalence Survey demonstrated no increase in problem gambling,” said Nicola Crewe-Read, director of communications at GamCare, a U.K. charity providing support, advice and counseling to people affected by gambling problems.

“GamCare believes that this outcome is undoubtedly due to the concerted efforts of the gambling industry to protect its customers from getting into difficulty as a result of their gambling activities. However, the survey did identify in excess of a quarter of a million people with a gambling problem.”

Stable Problem - While revealing that a sizeable minority still suffers from problems associated with gambling, the revelation that these numbers have not risen in eight years has given fresh impetus to proponents of Manchester’s “super-casino” proposal, which was put on indefinite hold by new Prime Minister Gordon Brown soon after he took office in June. The government stated that the report’s findings were not grounds for complacency, and that it remained focused on protecting children and vulnerable people.

“While the survey shows that problem gambling still only affects a small minority of people, it does remain a serious issue and something that has to be addressed,” read a statement issued by the prime minister’s office.

The Department for Culture, Media and Sport has stated that it will review the funding of gambling research, treatment and public education (something currently supported on a voluntary basis by the gambling industry) and will look again at plans for a super-casino to regenerate run-down areas.

“The prime minister said in July that the issue relating to a super-casino is whether or not this is the best way of meeting our regeneration objectives, and he is obviously skeptical about that,” read the prime minister’s statement.

However, those opposed to gambling—notably church groups and opposition political parties—were not pleased, and stated that more work needs to be done to decrease the number of those dealing with problem gambling even more.

“This report is two years too late,” said Jeremy Hunt, a conservative member of Parliament and the Shadow Culture secretary.

“All the gambling legislation has now passed through Parliament with little prospect of serious amendment. The horse has well and truly bolted from the gambling stables.”

“While we are relieved that the number of problem gamblers has not risen, there are still far too many,” added Anthea Cox, coordinating secretary for the Methodist Church.

“We want the next study in three years’ time to show a fall in the number of problem gamblers. We remain concerned about the increase in online gambling and betting. The study clearly shows that these are high risk for problem gambling.”

Professor Peter Collins, director of the Centre for the Study of Gambling, stated that he too would like to see the number of problem gamblers a good deal lower but said that measuring was an inexact science.

“There are very severe problem gamblers whose tragic situation is quite as grave as any other addiction, but there are people with much less serious problems,” Collins said.

  Proactive Response - While the vast majority in the U.K.’s casino industry stated they were pleased with the results of the survey, all pledged to carry on efforts at reducing problem gambling while continuing to offer a safe and enjoyable pastime for millions of players.

“We are pleased with the outcome of the Prevalence Study and encouraged that it found problem gambling has not increased,” said Andrew Herd, executive director of Aspers Group, one of Britain’s largest casino operators.

“The results confirmed our belief that the casino industry is not a major contributor to problem gambling. These results are fairly much in line with what we expected, as our industry is well-regulated and casino companies put considerable resources into operating in a socially responsible manner.

“However, this is not a time to be complacent, as this needs to remain the case, if not improve further. We take our responsibility toward the local communities in which we operate very seriously.”

Aspers founded Community Action For Responsible Gaming, a working partnership between local police, community and religious groups in Cardiff supported by GamCare. Designed to facilitate discussion, increase knowledge and reduce the risk of problem gambling, the group has a goal of reducing gambling problems in the next survey.

“Operators need to provide support for problem gamblers, and the approach of the Aspers over the last few years has helped reduce incidents of problem gambling,” said Herd. “We continue to work with CARG to promote this attitude.

“Aspers’ social responsibility programs are well-documented and regarded as some of the world’s best. Our commitment to socially responsible gaming is evident through our casinos, Aspers At The Gate in Newcastle and the recently opened casino in Swansea.”

“The Responsibility In Gaming Trust wants to learn from the very interesting experiment in working with the community that is being undertaken by Aspers via CARG,” said Malcolm Bruce, director general of RIGT.

The survey found that newer forms of gambling such as spread betting and fixed-odds betting terminals had the most problem gamblers. Spread betting had the highest number of problem gamblers at 14.7 percent followed by fixed-odds betting terminals at 11.2 percent and betting exchanges at 9.8 percent. It also stated that 6 percent of the population had gambled online with men more likely to gamble than women.

The government has not been shy at stating that, should problem gambling increase at the next study, it would look at tightening controls on the gambling industry. However, the industry maintains that it is committed to reducing problem gambling and working in partnership to see that this happens.

“Due to the provisions of the Gambling Act 2005 and the combined efforts of operators to ensure that individuals may gain access to the help, advice and treatment services available, GamCare fervently hopes that the incidence of problem gambling will not increase,” said Crewe-Read.

“In the meantime, GamCare will continue to work with the industry to ensure that any individual who needs help is able to access it, and to work with key front-line agencies in the consumer health and advice space to raise the awareness of GamCare and our services nationwide.”

By GGB Staff   Fri, Dec 14, 2007

The annual International Casino Exhibition at Earls Court, January 22-24, is shaping up to be a record-breaking event. Again.

The ICE show, which began its life in the early 1990s as a more or less annual family gathering for U.K. gaming industry veterans, has increased in size and importance to become Europe’s leading casino show. Last year, ICE visitor registrations approached the 10,000 mark, while close to 2,400 registered for ICE’s relatively new component—now in its fourth year—the online gaming exhibition, ICEi. Registered visitors to either show can flow freely between the two, which have separate dedicated stand sections but are under one roof.

This year, as every year, the number of visitors is expected to increase. Since 1995, ICE has had visitors from 178 countries. Clarion Events Marketing Manager Charlotte Skinner said, “There are presently 192 member states of the United Nations, so for the London Show to have been represented by so many is a remarkable achievement.”

Organizers are hoping to break the 180 mark this time around.  But it is the exhibitors that all come to see. By mid November, ICE 2008 was approaching 200 exhibiting companies, with ICEi adding another 60-plus to break the 160 mark. Every supplier category imaginable within the two industry segments is well-represented.

Once again, Austrian gaming machine maker Novomatic has taken the largest exhibition space at 1,116 square meters. Next biggest is IGT at 701 square meters—but after all, it is Europe’s show, and Novomatic needs a lot of space just for its traditional complimentary sausage bar.

In the ICEi section, Boss Media takes the prize at 120 square meters, with Microgaming and Playtech tied for second at 108 square meters.

To facilitate the registration and information process for exhibitors, the organizers of the show created an extensive online manual. The resource includes a detailed show schedule and venue information, local area info and a hotel listing, A-Z directory and “Guide To Exhibiting,” health and safety documentation, marketing and media information, and downloadable order forms for exhibitors logistical needs.

The Parties - ICE has a long tradition of great partying after the day’s work is done, and this year will be no exception. Aside from the numerous exhibitor-sponsored affairs—for which everyone will be hustling to obtain the all-too-limited invitations—there are three events open to all who don’t mind paying their own way.

The action kicks off the evening of the first day with “Breaking the ICE” at the Bluebird club in Chelsea. The venue is a “destination bar” and features classic and seasonal cocktails, selected spirits, champagnes and wines by the glass, and a relaxed lounge environment. Tickets go for £45 each which includes drinks—except for the aforementioned champagnes and cocktails.

Wednesday evening the action moves to the Adam Street Private Member’s Club located just off the Strand in the West End. “After Dark,” as the affair is known, is a new addition to the ICE social calendar. The evening starts with drinks and conversation and progresses to drinks and dancing. Again, the £45 ticket includes the basic drink menu.

And finally, for those who can still stand, the annual post-ICE ball will take place at the Dorchester Hotel on Thursday evening. For the first time, the British Casino Association will be organizing the traditional, formal event.

Lady Cobham, chairperson of the British Casino Association, said of the event, “Not only is the social aspect of the ball unsurpassed, but it has also succeeded in helping raise hundreds of thousands of pounds for charitable causes. We look forward to welcoming our casino industry colleagues from around the world in January and, for the first time, acting as true hosts of the Casino Ball.”

Tickets for the newly renamed Casino Ball (formerly the ICE Ball) must be requested from Tracy Damestani of the BCA on +44 (0)20 7730 1055.

ICE FACTS AND LOGISTICS

•   ICE and ICEi are open only to those working in the gaming industry. Entry to either show is free and pre-registration is recommended. A complete online registration facility can be found at www.ice-exhibition.com or www.icei-exhibition.com.
• Opening hours of the exhibitions are from 10 a.m. to 6 p.m. on Tuesday, January 22 and Wednesday, January 23. Hours are from 10 a.m. to 4 p.m.Thursday, January 24.
• Earls Court Exhibition Centre hosts the eFORCE Business Centre, managed by a team of professionals who provide excellent service. Facilities and services include PC workstations and laptop connections, printing, photocopying, binding, translation, couriers, fax and telephone. Meeting rooms are also available.
• The exhibition center has a wide variety of food and beverage offerings, providing everything from a quick snack to a full meal. Situated within the exhibit areas are also the ICE Bar and the ICEi Bar.
• On accommodations, ICE organizers have negotiated discounts with a wide range of London hotels. Check the online hotel guide at the ICE website for details.

Games Rules - Sports should look to casinos for integerity

Gambling and sports are understandable bedfellows. From backing the favorite to predicting a famous giant-killing, a wager adds a tangible layer of tension to even the most tedious kick-about, punch-up or run-around. However, suspicions that tense athletic events have been choreographed, pre-arranged or manufactured have grown exponentially of late; soccer, tennis and basketball are the most recent sports in the dock.

In this ICE feature, we look at how the world of professional sports could turn to the casino industry for ways to design, promote and safeguard regulation, reputation and integrity.

Despite the growing, often-astronomic returns enjoyed by professional sports, it must be tempting to make a little on the side. A missed free throw here, a goalkeeping error or a fake injury there—the potential for hoodwinking the public, punters and TV cameras is endless.

And so it has proved of late in professional sports.  No sporting industry wants to publicly admit it has a gambling problem. To do so would reduce the amount of sponsorship the sector would be able to generate and increase the chance of state intervention in the game, something the NBA wants to avoid at all cost. Rep. Bobby Rush of Illinois, head of the U.S. House Subcommittee on Commerce, Trade and Consumer Protection, has already requested a meeting with NBA Commissioner David Stern over the scandal involving referee Tim Donaghy, and is considering calling a hearing on the matter “should the facts warrant public scrutiny.”

With sports in the dock, perhaps they need to turn to other games to see how an industry can clean up. Alan Feldman, senior vice president of MGM Mirage, thinks it is time sports took a leaf out of the gaming book.

“We’re one of the most highly regulated industries in America, and we live and die on our integrity,” said Feldman. “We can do nothing to put that in jeopardy. In fact, if it turns out that the NBA is shown to be incapable of protecting the integrity of its game, it’s not a league we need to have in Las Vegas.”

Vegas takes transparency and integrity extremely seriously—understandably, as failure to do so would jeopardize its share of a booming U.S. market; the nation has witnessed the near doubling of legal gambling in just 10 years—to $83.7 billion in 2005, according to the American Gaming Association.

The degree to which the Nevada gambling industry submits to open scrutiny of its various games is indisputably intense, and association with a professional sports franchise (long coveted by Las Vegas) without transparency could cause real problems for the city.

Compare that with an American baseball industry that has balked at increased background checks from Commissioner Bud Selig’s office, calling the initiative a “knee-jerk, misguided witch hunt” in response to the NBA betting scandal.

Imagine the casino industry doing the same with croupiers. Visitors to Las Vegas know how games work, who works them and what the industry’s revenues are. For the most part, American casinos are treated no differently than banks by the federal government.

The 1985 Bank Secrecy Act, for example, requires casinos to report every deposit, every withdrawal, every exchange of currency, gambling tokens or chips of a value in excess of $10,000. The Nevada Gaming Commission has more than 400 employees.

The NBA, as much as any other sport, would do well to view the long-term benefits of transparency. The casino sector has worked hard to ensure that customers know how their product works. The failure of sports to do the same could lead to dwindling spectators, sponsorship and TV ratings. At least we know the World Series of Poker is safe—well, flourishing and honest.

The Ugly Game - At the end of July, 31-year-old Italian national team striker David Di Michele was banned for three months for illegal betting. Di Michele had been accused of betting “directly or through third parties, on the results of official matches organized by the FIGC (Italian Football Federation).” The maximum possible ban was three years, putting into context the relatively mild response to Di Michele’s wrongdoing.

Game, Set and Match - Nikolay Davydenko was at the center of an investigation into irregular betting. The match was between Davydenko and 87th-ranked Argentinean Martin Vassallo Arguello at the Polish Open. The Betfair sports gambling book in Britain suspended payments on the match when it saw about $7 million in wagers, 10 times the usual amount. Most of the money was on Arguello to win, even after Davydenko won the first set 6-2. Arguello won when Davydenko withdrew in the third set with a foot injury.

Free Throw? - It is in the National Basketball Association that the most public-case betting scandal has tipped off. The FBI is investigating referee Tim Donaghy, who has been accused of betting on games, possibly ones he officiated and possibly the all-important playoffs. It was the San Antonio Spurs who were said to have benefited from Donaghy’s decisions in their NBA semifinal matchup with the Phoenix Suns.  The NBA betting scandal could have a large impact on basketball in general. In a Zogby poll conducted at the end of July, one-third of NBA fans said they had less interest in the league because of the scandal, and two-thirds of the 7,362 respondents thought that Donaghy’s case was the tip of the iceberg.

Feature developed in partnership with ICE. For more information, visit www.ice-exhibition.com

ICE 2008 EXHIBITORS

• Acrosser Technology Co. Ltd. 3952
• 3M Touch Systems UK Ltd. 3570
• A W Neoon 3565
• Abbiati Casino Equipment s.n.c 3240
• Advansys d.o.o 3365
• Advantech 4080
• AEWIN Technologies Co.,Ltd. 4199
• Ainsworth Game Technology Ltd. 3440
• Alfastreet-Pockaj d.o.o. 3210
• Ally Star Technologies Inc. 4096
• Altoona srl 4194
• Amatic Industries GmbH with Genesis Games Ltd. 3720
• Andromica Video Systems 3507
• Apex Gaming Technology 3740
• Applus+ CTC 3112
• Aristocrat Technologies Europe Ltd. 3410
• Aruze Corporation 4170
• Ascend Media Gaming Group 3505
• AstroSystems Ltd. 3950
• Atronic International GmbH 3020
• Avantime Amusement Technology 3750
• Bally Technologies 3540
• Belatra Co., Ltd. 3516
• Belgian Gaming Technology 3225
• BetStone 3480
• BHS Böhm e.K. 3975
• Blackpool and The Fylde College 3456
• BMM International Pty Ltd. 3506
• Boser Technology Co., Ltd. 4098
• Cadillac Jack 3264
• Camlock Systems Ltd. 4122
• Cammegh Ltd. 3125
• Carat Technology d.o.o 3730
• Card Scanning Solutions 4197
• CardPOS Europe Ltd. 4192
• Carmanah Technologies Corporation 3760
• Cartamundi 3442
• CashCode Company Inc. 3235
• Casino & Gaming International 3454
• Casino Compendium 4092
• Casino International Magazine 3764
• Casino Life 3704
• Casino Locking Systems 3650
• Casino Review 3284
• Casino Supplies GmbH 3315
• Casino Technology 3270
• Casino World 3701
• Casinos Austria International 3460
• Casinos de Latinoamerica 3982
• Centre for Advanced Software Technology Ltd. 4196
• Cermel Group 3598
• Clarion ATE 0000
• Coastal International Exb. Co. Ltd. 4094
• Craft Data Ltd. 3266
• CTC Holdings 3475
• Custom Engineering UK Ltd. 4035
• Cyberview Technology Ltd. 3340
• Dal Negro SpA 3660
• Dallmeier Elec.c GmbH & Co. KG 3360
• Data Modul Ltd. 4065
• Densitron Gaming 3252
• Display Technology Ltd. 3761
• Distribucija Programskih Apikacija d.o.o 3576
• DLV Ltd. 3584
• Electra ST d.o.o 3030
• Elektroncek d.d 3200
• Elo TouchSystems 3444
• Empire Casino Recruitment & Consultancy 3420
• Entropy International Co., Ltd. 3707
• Euro Games Technology Ltd. 3380
• Eurocoin Limited 4040
• European Casinos The Elite 3982A
• Eurosiege 3504
• Euroslot 3764A
• Evona Electronic 3550
• Expo 24 Romania 3703
• F2 Systems, Inc. 4020
• Fair Play SRL 3710
• Forge Europa 3464
• Fournier Playing Cards 3250
• FSN Display Inc. 4084
• Future Gaming 3560
• FutureLogic Europe Ltd. 4030
• G PLANET d.d. 3860
• G2B 4184
• G3 Magazine 3984
• Gamcare 4074
• Game Plus Co., Ltd. 4099
• Gamer Casino Seating 3422
• Gamesman Ltd. 4120
• GAMESYSTEM s.c. M.Rymarz-T. Czajkowski 4090
• Gametronix 3500
• Gaming Laboratories Europe 3610
• Gaming Partners International SAS 3330
• Gaming Standards Association 3031
• Gaming Support 3010
• Gaming Technologies 3372
• Gasser Chair Company, Inc. 3370
• Giesecke & Devrient GmbH 3374
• Gkit Ltd. 3282
• Global Cash Access 3256
• Global Gaming Business 4072
• Global Gaming Expo 3452
• Global Gaming Industries Pty Ltd. 3980
• Global Payment Technologies (Europe) Ltd. 3116
• Glory UK 4180
• Gold Club d.o.o. 3040
• GPEG International Ltd. 3763
• GZ Technologies Inc. 4142
• Hanteck 4184A
• Heber Limited 4165
• HERMES SoftLab d.d. 3502
• ICIT d.o.o 3470
• ID-Interactive 3574
• IGT-Europe 3430
• Industrias Lorenzo S.A 4050
• Informatica Franco, SA 3070
• Innovative Technology Ltd. 4130
• InterGaming 3702
• Intervision Marketing Ltd. 4198
• IPS, S.L. 3942
• J.Preedy & Sons Ltd. 4066
• JCM American Corp. 3850
• Kare Technology 3645
• Kimble Gaming Ltd. 3960
• Kiron Interactive (Pty) Ltd. 4076
• Konami Gaming, Inc. 3090
• Kontron Embedded Modules GmbH 4060
• Lanner Electronics 4024
• Las Vegas Gaming, Inc. 3572
• Lucky Line d.o.o 3080
• Martin Williams Casino Equipment 3335
• Master Games 3954
• Matsui Gaming Machine Co. Ltd. 3215
• MD Gaming Int. Ltd. 3450
• MEI 3930
• Micro Sova Co Ltd. 4190
• Modiano SPA 3466
• Money Controls Ltd. 4145
• Morse Watchman UK Ltd. 3508
• Multiscan Corp 4082
• Nanoptix Inc. 3262
• New Sun Yu Enterprise Co., Ltd. 3120
• NICE Systems 3376
• NMi 3254
• Novomatic - Austrian Gaming
• Industries 3050
• Octavian 3230
• Odrex 4070
• Onetouch Technologies Co., Ltd. 3110
• Paradise Entertainment Ltd. 3595
• Pascual Consult bvba 4160
• Patir-Design GmbH 3630
• Playtrix Research Inc. 4022
• Prestige Seating Tech. (UK) Ltd. 3320
• Prize Magazine 3700
• Progressive Gaming International (UK) Ltd. 3310
• Project Coin Machines Ltd. 4150
• Quixant Ltd. 4140
• Red Planet Gaming GmbH 4093
• Royce and Bach 3510
• SAGSE 3956
• Scan Coin Ltd. 4055
• Set-Production 3220
• Shuffle Master GmbH & Co KG 3350
• SIG-Expo 3970
• Signs 4U B.V. 3345
• SIQ 3424
• Sleic S.L. 3512
• StylGame S.R.L 3260
• Suzo Happ group 3920
• Taiwan Fulgent 3600
• Talleres de Escoriaza S.A.U 3944
• TCS John Huxley 3000
• TOVIS (Total Visual Appliance) 4120A
• Tranchant Gaming Technology 3400
• Unidesa Gaming & Systems 3300
• Uniforms by John Marks 3114
• University of Nevada Reno 3705
• Video B Holdings Ltd. 3485
• Vitco 4188
• WagerWorks 3620
• WEBAK games Austria 3385
• White Conveyors, Inc. 4189
• WMS Gaming 3060
• XtalE Ltd. 3582
• Yogonet.com 3762
• Zephyr d.o.o 3280
• Zest Gaming 3940
• Zitro Games S.L. 3585

ICEi - Exhibitors

• Greentube I.E.S AG 5020
• IGaming Business 3708
• Initial Poker 5125
• Inside Gaming Ltd. 5200
• Intelimax Media Inc. 3706
• Intouch Games Ltd. 5212
• Iovation, Inc. 5315
• Isle of Man Government 5320
• Ixaris Systems Ltd. 5362
• Magneta Technologies Ltd. 5412
• Malta Lotteries and Gaming Authority 5345
• Media Corporation Plc 5422
• Media Systems Ltd. 5444
• MGame Solutions 5424
• Microgaming Software Systems Ltd. 5230
• Moconso AG 5040
• Net Entertainment 5270
• NIT d.o.o. 5300
• Nyx Interactive AB 4124
• Orbis Technology 5370
• Parlay Entertainment Ltd. 5225
• Parspro Ltd. 5210
• Partouche Interactive 5375
• Pentasia IGaming Recruitment Consultancy 5430
• PIMS SCA 5363
• Play LA Inc. 5310
• Player2Players 5532
• Playtech Software Ltd. 5260
• Probability PLC 5220
• Puntocasino Ltd. 5332
• Safecharge 5316
• Safepay Int. 5330
• Sovereign Corporate & Fiscal Services Ltd. 5530
• States of Alderney / Alderney
• Gambling 5340
• Swiss-One 5364
• TransBank 5520
• Trimark Gaming Inc. 5360 

By Roger Gros   Sun, Jan 06, 2008

By Roger Gros   Sun, Dec 23, 2007

By Frank Legato   Tue, Dec 18, 2007

I was just sitting here contemplating last month’s Global Gaming Expo, and thinking how the industry’s showcase event is, indeed, a metaphor for life itself—its triumphs and failures, its sheer jubilation and its utter despair.

I’m kidding. Actually, I was eating a Slim Jim and watching a Popeye cartoon. But isn’t that really the same thing?

Normally, in this space the month after the big G2E show, I would write a wisecracking, madcap review of the show, but this year, I thought I would use my years of journalistic experience, combined with knowledge of gaming technology gleaned from two decades of trade-magazine research, to write a comprehensive, professional analysis of the trade show.

Then I thought again, and decided to just go with the wisecracks.

What I said in the first paragraph is sort of true of G2E—it has its good and bad points. For instance:

Good: F&B at G2E. As always, it was a good thing I was moderating panels and had meetings in the main trade show. Otherwise, I would have stayed at F&B, eating everything in sight, until they came with a forklift to remove a blubbery carcass the size of West Virginia that was once me. It was a showcase of culinary heaven.

Bad: The hot dog situation. At the Nathan’s booth, you get half a hot dog. Half a dog? Who wants half a dog? Why don’t you give me half a Coke with it, and a single French fry? Where’s the other half of my hot dog?! Oh well, no problem. I can go over to the Dietz & Watson booth and get a great, complete hot dog—except they put it on this hard, chewy, whole wheat health-food bun.

Look. If you’re going to eat a hot dog, you’re pretty much past the healthy-eating stage, aren’t you? “Let’s see. I’ll have all that pig meat left on the slaughterhouse floor. Bake it into a skin wrapper, boil it and hand it over. But make sure the bun is healthy, OK?” My point? Wrap that tube steak in some enriched flour, willya? Maybe throw in some chili and cheese. Better yet, cover it in cornmeal and deep-fry that sucker. I want to die with a smile on my face.

OK, on to the main trade show:

Good: All the networking. I saw gaming professionals from every part of the planet, and learned about their companies and products. You can only do that at G2E.

Bad: Several of those professionals, although we had never met, knew who I am—not by reputation, but by cartoon, thanks to that image over there on this page. “Ja, I know you! You that cartoon!” I used to wonder what to respond when presented with the sentence, “I recognize you from your cartoon.” Now, I simply respond, “I recognize you from the police sketch.” (Yeah, yeah, I know. It actually does look like me.)

Good: The innovations from the slot-makers, and the system-makers. Cyberview had these Xbox-style games designed for server-based slot systems that were way cool. (Professionally speaking, of course.) One of them was a pinball game that was so realistic I thought I was 17 and back at the bowling alley. (Damn flashbacks.) Hey, I’m the first to admit I suck at Pong (another way-cool game, by Bally), but if I can win money by being good at pinball, reserve my Ferrari right now.

WMS had “The Wizard of Oz,” where you sit down in this virtual-reality-style seat, surrounded by sound, and it’s like you’re in the movie. I had nightmares about flying monkeys that night. (But not because of the game.)

IGT had this game that used two overlapping video screens, to create a 3-D effect that simulated spinning reels so realistically that you’d think it was a stepper. I thought, “Why not just play a stepper?” Then I remembered—this is perfect for server-based gaming, which we’re now supposed to call “networked gaming.” Oh, whatever. I still like my Triple Stars reel-spinner. In dollars.

Bad: The parking situation. Ten bucks to park at the Convention Center lot. Yes, I’m aware it costs $35 to stop your car in New York City. But this is Las Vegas, the land of free parking. I just parked for free at the nearest available casino parking space. It was in Reno.

OK, upon reflection, there was much more good than bad at the G2E show. Just like every year.

Now, where was I? Oh yeah, Popeye and Slim Jim!

By GGB Staff   Tue, Dec 18, 2007

Win Systems adds strategic advisor -Win Systems International, a global supplier of systems and software for casinos and lottery, announced the appointment of casino industry veteran Roy Student as a strategic advisor to help the company maintain continued growth in world markets.

Student was formerly president of Cyberview Technology, Inc., and prior to that was the vice president of sales for Cyberscan Technology and the longtime chairman and president of pioneering technology firm Gaming Systems International. He has 36 years of gaming industry experience, and is respected throughout the industry as an innovator and leader. Student also is a member of the Editorial Advisory Board for Global Gaming Business.

Win has its roots in the international lottery industry, deploying and managing networked systems for state and national lotteries around the world. The company has offices in the U.S., Spain and Argentina and is now looking to become a full-service provider of server-based gaming solutions to the casino industry.

“We are delighted to have Roy joining our team,” said Dario Zutel, chairman and CEO of Win Systems International. “He is renowned and respected within the industry, and will contribute immensely to achieve our expansion plans within the American gaming market.”

MotorCity names hotel VP - MotorCity Casino Hotel in Detroit, Michigan, named Randal Villareal vice president of hotel operations, effective immediately. The hotel at the MotorCity casino opened November 1. Villareal previously worked as divisional vice president of the Remington Hotel Corp. in Dallas.

Isle names U.K. exec - Isle of Capri Casinos has named Donn Mitchell senior vice president of United Kingdom operations. Mitchell joined the company in 1996 as director of financial analysis and has served as senior vice president, CFO and treasurer since 2005.

Mitchell recently oversaw a refinancing at Isle of Capri that resulted in a new $1.35 billion senior secured credit facility. His new promotion still needs the approval of regulators.

Virginia McDowell, president and COO of Isle of Capri Casinos, Inc., said, “Donn’s familiarity with our properties and markets will be a significant asset.” In the U.K., Isle of Capri currently owns the casino at the Ricoh Arena in Coventry and has a two-thirds interest in casinos in Dudley and Wolverhampton.

GameTech names CFO - GameTech International, Inc., a leading supplier of electronic bingo equipment, announced that Donald Tateishi has been named chief financial officer. Tateishi has 15 years of financial experience, most recently with Harrah’s, where he was director of finance for the operator’s Reno property.

“We are extremely pleased to have a person with Donald’s financial and gaming qualifications joining GameTech,” said Jay Meilstrup, the company’s president and CEO. “As our company continues its growth, we will be relying on Donald’s experience to support the needs of our company in the future.”

Prior to his position at Harrah’s Reno, Tateishi was director of planning and analysis for the western division of Harrah’s Entertainment.

Wynn names operations chief - Wynn Resorts Ltd. named Philippe Caretti senior vice president and general manager of resort operations at Wynn Las Vegas.

In his new position, Caretti will oversee all aspects of the resort administration operations.

He brings 27 years of hotel management experience to Wynn Las Vegas, having previously worked in other popular vacation destination cities including Geneva, London, Chicago, Shanghai, Hong Kong and Bangkok.

Most recently, he was working at the Hotel Mulia Senayan Jakarta, where he held the position of vice president and general manager responsible for operating the property’s 996-room hotel and resort in Bali.

Prior to working in Indonesia, Caretti spent 13 years with the Shangri-La Hotel Group and distinguished himself with both the Swissotel Group and the Mandarin Oriental Hotel Group. He is a graduate of the prestigious Lausanne Hotel Management School in Switzerland.

Dolci named president of USPC - The United States Playing Card Company announced the appointment of Phil Dolci as the company’s president.

Dolci has 15 years of management experience, most recently serving as vice president and general manager at Sanford, L.P., a division of Newell Rubbermaid, where he contributed to the growth of such brands as Sharpie and Expo. Prior to that, he was brand director at ConAgra Foods, Inc., general manager at Dean Foods, and in brand management at Kraft Foods, Inc.

Marvel to direct database ops - Cannery Casino Resorts in Las Vegas named Michael Marvel executive director of database operations and analysis.

Marvel joined Cannery in 2002 as director of database marketing. He brought with him previous gaming experience acquired working as database marketing manager for the Stratosphere and Arizona Charlie’s hotel casinos in Las Vegas, where he was responsible for all marketing activities for Icahn Gaming in Nevada.

Marvel also has experience working as a human resource recruiter for Station Casinos, and as an intelligence analyst for the U.S. Air Force.

“Mike Marvel has been a great asset to our team,” said Joey Whitacre, vice president of corporate casino marketing at Cannery Casino Resorts. “We look forward to his continued growth and success with Cannery Casino Resorts.”

Fontainebleau appoints marketing VP - Las Vegas-based Fontainebleau Resorts, LLC announced the appointment of Marta Lautin as vice president of marketing. Lautin will be based in the company’s Aventura, Florida office.

In her new position, Lautin will oversee marketing for the Fontainebleau Resorts brand, which currently includes the $2.9 billion Fontainebleau Las Vegas under construction on the Strip, and Fontainebleau Miami Beach, now undergoing a $500 million renovation.

Previously, Lautin was director of marketing programs for LXR Luxury Resorts & Hotels, where she directed all aspects of creative, branding and strategic marketing services.

“Marta brings a tremendous amount of experience and creativity to the Fontainebleau executive team,” said Howard Karawan, chief operating officer of Fontainebleau Resorts. “I’m certain her expertise will be invaluable as we establish the Fontainebleau brand and introduce these two distinctive destination resorts.”

Pinnacle announces executive moves - Pinnacle Entertainment, Inc. announced a series of property-level executive changes designed to help the company manage its growth and expansion.

David Williams has been named vice president and general manager of the company’s Boomtown Reno property in Verdi, Nevada. Williams most recently served in the same capacity at Boomtown New Orleans in Harvey, Louisiana, where he had held various executive positions since that property’s opening in 1994.

Terry Schneider has been named to succeed Williams as vice president and general manager of Boomtown New Orleans. Schneider most recently served as VP and general manager of Pinnacle’s former Casino Magic Biloxi property in Biloxi, Mississippi, which was closed as a result of damage from Hurricane Katrina. The closed property and related assets have since been sold.

As the general manager of Casino Magic Biloxi, Schneider oversaw all aspects of the casino property, including its AAA Four Diamond-rated hotel. Prior to that, Schneider was director of casino operations for Argosy Kansas City in Missouri, and spent several years in successive operating positions with Harveys Casinos.

Rafael Verde has been promoted to vice president and general manager of Casino Magic Argentina. Verde will oversee the company’s main Casino Magic Neuquen property, as well as the company’s several smaller regional casinos in the province. A native of Venezuela, Verde most recently served as assistant general manager at Boomtown New Orleans. He began his gaming industry career at the Argosy Casino-Baton Rouge.

“We’re pleased to be moving these three executives into new positions,” said Daniel R. Lee, Pinnacle’s chairman and CEO. “David will be instrumental in our plans for Boomtown Reno, which we plan to refurbish and expand. In New Orleans, Terry will be overseeing our plans to add a 200-guestroom, Four-Star hotel and to replace our existing riverboat with a state-of-the-art single-deck casino. Rafael will play a key role for us in Argentina, where we are completing construction of our first hotel adjoining our principal casino.”

James named COO of Seminole Gaming - The Seminole Tribe of Florida announced that John J. James has been named chief operating officer for Seminole Gaming, with overall responsibility for the operations of the Seminole Hard Rock Hotels & Casinos in Hollywood and Tampa, Florida, as well as other Florida Seminole Casinos in Coconut Creek, Hollywood, on the Immokalee Reservation near Naples, on the Brighton Reservation northwest of Lake Okeechobee and on the Big Cypress Reservation south of Lake Okeechobee.

James will report directly to James Allen, CEO of Seminole Gaming. “John is a respected gaming industry professional and we look forward to his leadership of Seminole Gaming in the coming months and years,” said Allen.

James was most recently general manager of the Pechanga Resort & Casino, Temecula, California. For more than two years, he directed 5,000 team members and was responsible for operations at the 522-room, Four-Diamond casino resort, which is owned by the Pechanga Band of Luiseno Indians.The Pechanga Casino includes both Class III slot machines and Class II electronic bingo machines, as well as table games and poker.

His earlier gaming and resort experience includes Station Casinos, Inc., the Regent Las Vegas, Palms Casino Resort, Fiesta Casino & Hotel, Boomtown Las Vegas Resort, Four Queens Hotel & Casino, Gold River Casino Resort and Bally’s Las Vegas.

By Frank Legato  

• PRODUCT:  Slot Stand
• MANUFACTURER:  KGM Gaming

Pennsylvania-based KGM Gaming has introduced a slot stand the company says will revolutionize the way casinos install and reconfigure slot floors.

Called simply “The Slot Stand,” the product includes a number of “plug and play” features that allow operators to quickly reconfigure a slot floor with minimal player disruption.

The new technology employs a system of pre-wired “pods” that quickly connect and disconnect using a series of internal harnesses. The Slot Stand incorporates the full range of required slot floor wiring. All wiring is self-contained, which means casinos will no longer be required to run their power and data across the floor.

The Slot Stand can be powered from any central floor location within a particular bank. Once a single pod becomes live, it can power neighboring pods with a chain-like effect.

Another distinctive feature is an internal structure framework that allows an exclusive KGM sign pole to quickly bolt in and become easily powered up.

The stand also uses a quick-change universal plate that bolts to the underside of a slot machine. Once in place, this plate allows movement of a machine to any location on the floor without using tools. The plate contains all required bolt and electric holes, and mounts to the stand using an exclusive locking system.

The stand, which physically resembles a simple coffee table, is available in traditional slot style configurations, and in materials including any combinations of steel, aluminum, wood, laminates, acrylic or stone.

For more information, contact KGM Gaming at 215-430-0388, or visit the company’s website at www.kgmgaming.com.

By Frank Legato  

• PRODUCT: EvenLit light panel
• MANUFACTURER: Carmanah Technologies Corporation

Carmanah’s LED Sign Group has added the ultra-slim LED edge-lit “EvenLit” light panel to its product line of innovative LED edge-lit sign solutions for the gaming industry.

Measuring less than an inch in thickness, the EvenLit light panel contains the most technologically advanced, long-life LEDs in the industry, designed to deliver top performance for 10 years or more with no flickering, dark spots or hot spots. The panel is designed to be maintenance-free for its lifetime.

The EvenLit product’s lightweight, slim profile design, low voltage requirements and durability allow it to be mounted anywhere there’s access to a regular electrical outlet, making it an ideal choice for a wide range of indoor resort and casino marketing applications, including the ends of slot banks. A unique frame housing delivers a wide range of mounting or hanging options and easy change-out of graphics.

Other features include a safe, 24-volt design, low energy consumption, a mercury-free LED light source and 100 percent recyclable aluminum housings and acrylic panels.

Carmanah’s unique, award-winning illuminated signs can be found in over 450 casinos, hotels and cruise ships around the world. For more information, call 1-800-665-3749 toll-free in the U.S., or worldwide at +1 (403) 252-6047; or visit the company’s website at http://www.casinosigns.net.

By Frank Legato   Tue, Dec 18, 2007

• PRODUCT: Epic 950 Printer
• MANUFACTURER: TransAct Technologies, Inc.

TransAct Technologies has introduced a printer for slot-machine ticket-in/ticket-out applications that is designed with all the capabilities necessary to take full advantage of server-based gaming applications.

The Epic 950 printer and accompanying software permit casinos to design promotions around coupons that can be dispensed through a slot’s cash-out mechanism. It incorporates a patented dual-port technology known as “ServerPort,” which allows it to connect simultaneously to the game and to the casino’s server, while at the same time delivering targeted coupons and offers to players in real time.

For instance, if a player earns a comp at the restaurant, or is staying at the hotel and earns enough for a free room while he is playing, a coupon for

that award can print out instantly, while the player is at the machine.

The Epic 950 prints in two colors (black and red), and in any language. The software allows flexibility in laying out any logo design or other personalized design for coupons to reach players.

“TicketBurst” technology prints and “bursts” each gaming voucher before presenting it, which eliminates player interference and avoids downtime.

For more information, call TransAct at 877-748-4222, or visit the company’s website at http://www.transact-tech.com.

By Frank Legato   Tue, Dec 18, 2007

• PRODUCT:  Evolver Cabinet
• MANUFACTURER:  Cole Industries, Inc.

Cole Industries used the recent Global Gaming Expo to introduce an innovative new product line called the Evolver Series of cabinets. The Evolver Series allows customers to quickly change the appearance of a cabinet, to fit game changes in a server-based setup or any other changes in game content or themes.

The Evolver provides what is essentially a kit that permits the operator to move among several different cabinet styles without buying a new cabinet. Casinos can quickly upgrade the cabinets to match new games and atmosphere as needed on a typically dynamic gaming floor.

“To summarize the versatility of the Evolver Cabinet Series, it is best understood if visualized as the evolution of time,” says a spokesman for Cole Industries. “As the cabinet’s look becomes outdated, it easily evolves into a new unique look, without the inconvenience of replacing the entire cabinet.”

With the replacement of several different components that make up the face of the cabinet, a new look for the player can be created quickly and easily without having to remove the machine from the casino floor.

“Simply put, the Evolver Cabinet Series will stand up against the test of time and evolve with the ever-changing gaming market,” the spokesman says.

For more information, contact Cole Industries at 702-633-4270, or visit the company’s website at http://www.coleindustries.net

By GGB Staff   Tue, Dec 18, 2007

New Tables changing face of poker - The smiling dealer, menacing stare behind towering chip stacks, even the ruffle of the shuffling of cards have become distant memories at some card rooms in the U.S. as more properties incorporate automated poker tables into their offerings.

PokerTek’s PokerPro automated poker table is revolutionizing poker at smaller casinos and card rooms that otherwise lacked the staff needed to offer poker. And while managers appreciate the reduced manpower needed to offer what remains a popular game, players are taking to the tables, too.

“It’s what I call no-brainer poker,” said Ron Wills, who plays at least three times a week at the Folsom Lake Bowl Sports Bar and Casino near Sacramento, California. “No chips to stack, no cards to shuffle, just sit down and play.”

The tables speed up the game—making it more like the internet games many of the newest players are used to—and eliminates human mistakes like misdeals and wrong calls on winning hands. A faster game keeps customers happy, and also produces more rake for the house.

PokerTek CEO Chris Halligan said the PokerPro tables deal an average 46 hands per hour, 50 percent more than the average human dealer, who churns out only 30 hands in an hour.

And while the house benefits from the increased action, so, too, can the players. More hands mean an increased chance of getting a playable hand, and without a dealer to toke, players keep more of their winnings.

“If you’re doing well, tossing in $1 or $2 after every win can add up,” said Matt Harkness, general manager of the Four Winds Casino Resort in New Buffalo, Michigan, which opened this summer with a fully automated poker room. “This technology keeps that money with the players.”

Dealing in West Virginia - The Mountaineer Race Track and Gaming Resort opened its poker room and simulcast facility October 19, and is already seeing benefits.

The new offerings have allowed track officials to increase purses by 10 percent.

The poker room features 37 tables spreading games 24 hours a day. The main room runs a $2-$4 limit poker game, while a separate high-roller room will offer higher stakes based on demand.

The room is located on the first floor of the facility because track officials believe that poker players are more likely to wager on the races.

The 3,000-square-foot simulcast area has 120 individual viewing stations, betting clerks and self-service machines.

“The recent enhancements to our racing program have been very favorably received and are indicative of Mountaineer’s continued commitment to both our racing product and our racing fans,” Mountaineer Director of Racing Rose Mary Williams said in a statement.  The renovation cost $1.2 million. 

In 2008, the track will add roulette, craps, blackjack and additional table games. Track officials say the games, approved by the voters, are necessary for the track to remain competitive with casinos in neighboring Pennsylvania.

Bad Beat in Pennsylvania - Hopes for a precedent-setting ruling from a Pennsylvania judge declaring poker a game of skill were dashed in October.

Judge Richard McCormick Jr., presiding over the case of a Westmoreland County attorney accused of operating illegal, for-profit poker tournaments, agreed with the prosecution that the outcome of a hand in poker is determined predominantly by chance.

“Whether you win or lose, it’s based essentially in the cards you are dealt, and that’s by chance,” prosecuting attorney John Peck argued.

Poker tournament comes to Macau

The world’s largest online poker site, PokerStars, announced the first no-limit Texas hold ‘em poker tournament to be held in China: the PokerStars.net Asia Pacific Poker Tour Macau.

The tournament ran from November 22 to November 27 at the Grand Waldo Hotel and Casino.

“The Asia Pacific Poker Tour is honored to be bringing the sport of tournament poker to Macau,” said Jeffrey Haas, president of the APPT. “Macau is already the world’s gaming capital, and this historic event diversifies its global attraction by including the APPT’s unique brand of poker tourism. It’s a significant step forward, not only for the APPT, but for the growth of poker in Asia.”

New California laws benefit card clubs - The $1.3 million that the Los Angeles Casinos Political Action Committee has given California politicians in the past 18 months may have helped recent passage of several state laws benefiting the seven card room operators in the group and others.

Much of the money went to committees linked to state Senate President Pro Tem Don Perata. One new law he backed, SB 730, allows the use of chips to pay for food and drinks on a card-room gaming floor and lets licensed employees work in a variety of key jobs.

Perata also pushed SB 289. It supersedes state law that prohibited a California gaming license recipient from investing in commercial casinos or tribal casinos. Investments cannot exceed 1 percent of ownership, and specified public gaming companies still cannot hold California gaming licenses.

“The way it was set up you can’t own an interest in a casino in Nevada,” said Hustler Casino owner Larry Flynt. “It’s stupid.”

The California Coalition Against Gambling Expansion said SB 289 marked “the continued slide toward unfettered gambling in California.”

Governor Arnold Schwarzenegger vetoed one bill as conflicting with the state’s long-running moratorium on significant card-room expansion. It would have let some localities OK more tables without a popular vote.

By Frank Legato   Tue, Dec 18, 2007

This is the first game in a new series, Advantage 5, introduced by Konami at the Global Gaming Expo. Advantage 5 is a five-reel, multi-line stepper series with a striking new appearance. This is achieved partly because the games use full-size reels, the same as in a traditional three-reel slot, which makes the set of reels look giant in a five-reel setup.

The top box features a mirrored “Infinity” light box. Multi-colored LED lighting combines with mirrors to create an elegant cantilevered 3-D effect. It appears as if the front of the top box is transparent and you are looking inside at a festive light show.

The five reels on the games are all back-lit, and the lighting changes colors according to different events in the primary game. The multi-colored LEDs can display up to 256 colors. Even the colors in the etched-glass belly of the slot change according to different jackpot events in the game. In the middle of the top box is a 19-inch color video screen.

“Vibrant 7s” is a traditional-style game in a five-reel configuration with 25 paylines. The pay schedule includes multiple “7” combinations, each a different color. There is a four-level, stand-alone progressive jackpot that is won through a multi-leveled bonus round.

In the primary game, bonus symbols line up to trigger 15 free games. If five green 7s line up on an active payline, it triggers the “Numbers Bonus,” a progressive bonus round that awards one of the four progressives. The reels spin to match up different-colored numbers on the reels, which each correspond to a payline. Each payline corresponds to one of the jackpot levels.

Vibrant 7s and the rest of the Advantage 5 lineup are all multi-line games designed for low denominations and high volatility.

• Manufacturer: Konami Gaming
• Platform: Advantage 5
• Format: Five-reel, 25-line stepper slot
• Denominations: .01, .02, .05, .10, .25, .50. 1, 2, 5
• Max Bet: 250
• Top Award: 8,000 times line bet
• Hit Frequency: 53.84%
• Theoretical Hold: 2%—14%

By Frank Legato   Tue, Dec 18, 2007

This new game in Atronic’s “e-motion” series offers a highly volatile program and beautiful artwork. The theme, like the name suggests, is ancient Rome, communicated in sharp, colorful graphics of all the Roman icons one would expect. The base game is available in nine-line and 25-line versions, with a variety of bet configurations and top jackpot amounts. It is produced in all denominations, but the recommended configuration is as a penny game, with maximum bets up to 625 credits and the top award up to 75,000 credits.

The “Caesar” symbol is wild in both the primary game and bonus events. Three “Coliseum” symbols trigger a scatter award and 15 free games. The free games are typically triggered again during the free-spin round, and can rise to a maximum of 300 free spins in one session.

During the free spins, the Caesar wild symbol doubles the jackpot of any winning combination in which it substitutes for another symbol. If the arrow symbol lands anywhere on the screen during a free spin, it initiates a unique feature called the “Free Game Wild Bonus.”

If the arrow symbol appears during a free spin, it floats to the top screen in the dual-screen format, and gives the player one of four possible scenarios for an extra bonus award on that spin:

The “Wild Rain” event replaces one symbol on each reel except the middle reel with a Caesar wild symbol, and then recalculates the win with the wilds in place.

“Reel Wild” replaces two, three or four reels completely with wild symbols and then recalculates the win.

“High to Wild” turns each high poker symbol into a wild symbol and then recalculates the win.

“Wild Pays” pays five times the bet for each wild Caesar symbol on the screen, and then recalculates the win.

Atronic will set up some banks of this game with its new “Mystery Magic” progressive, which awards a progressive prize to a random machine on the bank regardless of the combination on the reels.

• Manufacturer: Atronic Americas
• Platform: e-motion
• Format: Five-reel, nine- or 25-line video slot
• Denominations: .01, .02, .05, .10, .20, .25, .50, 1, 2, 5, 10, 25, 50, 100
• Max Bet: 625
• Top Award: 7,500, 15,000, 25,000, 30,000, 75,000
• Frequency: 29.71%, 29.58%
• Theoretical Hold: 8.00%—14.00%

By Frank Legato   Tue, Dec 18, 2007

This new game applies the theme of the 1960s sitcom Bewitched—first used several years ago in a game in AC Coin’s “Slotto” bonus-ball series—to the company’s “Slotto Spin” series, a group of games placing the Slotto sphere inside a wheel display with spots granting various numbers of bonus balls and multiplier amounts.

The base game is the newest version of the IGT three-reel classic “Triple Stars.” The pay schedule is the traditional Triple Stars table, with four different “7” combinations and the Triple Stars wild symbol, which triples jackpots in winning combinations and multiplies the prize by nine if two wild symbols land in a win. “Bewitched Spin” places this base game in three-reel multi-line formats—it is available in five-line or nine-line versions, with a maximum wager of 75 credits or 135 credits, respectively.

When three “Bewitched” symbols land on an active payline, a button on the panel begins to flash. When the player touches the button, lights begin to flash around the circular game board, lighting each bonus space until stopping on one to award either a number of bonus balls or a multiplier award. If the flashing stops on a multiplier—there are 2X and 5X spots—the number applies to the first bonus ball selected in the bonus round, and the flashing continues until landing one, two or three bonus balls.

The Slotto sphere then does its thing, circulating the balls on air until the balls awarded drop into a chute. There are 11 bonus balls in the chamber, 10 with pay values and one 2X ball that multiplies the total award. After all is said and done, the entire accumulated bonus amount is multiplied by the line bet.

At max-coin, the top possible bonus award is 37,500 credits.

• Manufacturer: AC Coin & Slot
• Platform: IGT S2000 / Slotto Spin
• Format: Three-reel, multi-line stepper with mechanical top-box bonus
• Denominations: All denominations available
• Max Bet: 75
• Top Award: 100,000
• Hit Frequency: Approximately 50%
• Theoretical Hold: 5.49%—15.44%

By Frank Fahrenkopf   Tue, Dec 18, 2007

Each December, it’s instructive to take a look back at challenges and accomplishments of the past year to help plan for an even more successful year ahead. The American Gaming Association’s activities in 2007 covered issues as esoteric as currency reporting requirements and as politically charged as internet gambling. Throughout all our efforts both on and off Capitol Hill, we remained steadfast in our role as a national advocate for an industry that is a vital contributor not only to the communities where we operate, but to the national economy as a whole.

On the legislative front, internet gambling retained its prominent place on our agenda in 2007. With several bills related to the issue introduced this year, the AGA took a position on only one. We endorsed legislation offered by Reps. Shelley Berkley (D-Nevada) and Jon Porter (R-Nevada) calling for an in-depth study of internet gambling by the National Academy of Sciences to identify the proper response of the U.S. to the growth of internet gambling. A hearing on the bill took place in mid-November and at press time had garnered 66 co-sponsors.

On the tax front, the AGA, through its Tax and Finance Task Force, helped facilitate negotiations with the IRS on tip rates, which were successful in obtaining key benefits for gaming employees.

The Tax and Finance Task Force also worked with the IRS to ensure that, beginning in 2008, casinos and other sponsors of poker tournaments will no longer have to withhold federal income tax from the winners’ payout if, in most cases, sponsors report payments to winners to the IRS.

In another important regulatory development, the Financial Crimes Enforcement Network of the U.S. Department of the Treasury this year approved the first-ever reduction of currency transaction reporting requirements for the gaming industry—an exemption from reporting jackpots paid out by slot machines and video lottery terminals that the AGA had pushed for nearly a decade.

The AGA also continued to promote initiatives and opportunities for business innovation through such channels as the Global Gaming Expo family of events. 2007 marked the seventh year of the flagship G2E in Las Vegas and was our most successful ever with more than 30,000 attendees and more than 330,000 square feet of exhibit space featuring 750 gaming industry suppliers from around the world.

June 2007 saw the debut of G2E Asia in Macau to better serve the expanding marketplace in this part of the world. The inaugural conference and trade show proved a huge success, and with G2E Asia 2008 planned for the new Cotai Strip Convention and Exhibition Center at the Venetian Macao, we are looking to grow that event into just as large and diverse a show as that in Las Vegas. This spring, we also held G2E Institute in New Orleans, where we were grateful for the opportunity to work with the people in the Crescent City.

As I have emphasized in this space before, the commercial casino gaming entertainment industry has been at the forefront in promoting diversity within its ranks, and the AGA continued to build on this commitment in 2007. This began with the implementation of the AGA’s new Tier II Diversity Reporting program for suppliers, and we continue to work with our member companies to refine that effort. In addition, the AGA added a construction working group to its Diversity Task Force to enhance diversity in that segment of our industry. The AGA also continued its ongoing collaboration with the Congressional Black Caucus.

2007 also saw the AGA continue to provide research and information on the commercial gaming industry. We released two new white papers as part of our ongoing 10th Anniversary Research Series, one detailing the results of a survey of employee attitudes about the industry, and one reviewing the difficulties in effectively estimating the social costs and benefits of gambling. Earlier in the year, the AGA also released a valuable research tool for the public and the media in “Facts at Your Fingertips” as well as the annual AGA State of the States report that included a special section on the Gulf Coast region.

Responsible gaming remains near the top of the AGA’s agenda, and this year marked the 10th anniversary of the creation of Responsible Gaming Education Week. The theme of this year’s campaign, “Responsible Gaming: In Your Own Words,” encouraged employee and public involvement, and an event in Atlantic City highlighted national employee poster and essay contest winners.

The AGA continued to work closely with the National Center for Responsible Gaming, our affiliated charity. The year began with a new look and new website for the NCRG, and the organization partnered with the AGA to promote and enhance many of the organization’s responsible gaming initiatives, including packaging the Eighth annual Conference on Gambling and Addiction with G2E, as well as sponsoring a broad launch of EMERGE, the tool for training employees about responsible gaming. The AGA and the NCRG also collaborated to promote a fundraising drive that raised $7.5 million, bringing the industry’s total contribution to NCRG to more than $22 million in 11 years.

Finally, but by no means lastly, the AGA has developed and is applying a comprehensive and aggressive media outreach program, designed to educate reporters about how our industry works, how it contributes to the economic progress of the jurisdictions, states and nations in which it operates, and how our good corporate citizenship has gained the trust and admiration of communities.

As we close the door on 2007, we look forward to a new set of opportunities and challenges in 2008. It certainly will be an eventful year, with national elections dominating the spotlight. As ever, we will remain committed to our members to protect their businesses, promote their contributions and enhance their opportunities throughout the world.

By Frank Fantini   Tue, Dec 18, 2007

In the never-ending debate between the bulls and the bears, a subject of intense interest is the economic health of Las Vegas.

Bears see a troubled economy today, and worse tomorrow as they fear the housing crisis will worsen, shaking consumers and knocking the legs out from under the locals casino market.

They also worry that the national economy will weaken and consumers, who have been avid gamblers in past recessions, will pull in their horns on the lavish spending of the new Strip revenue model that relies upon $300-a-couple meals, $125 show tickets and cash hotel rates.

Bulls look at all the megaresorts and their 35,000 hotel rooms coming on stream between now and 2011 and see huge demand for more workers to fill them, which means continued population growth and a housing demand that will lift the Las Vegas economy.

Some of the worry was dispelled when Boyd Gaming reported third-quarter earnings and boasted a 9.3 percent rise in EBITDA from the locals market while CFO Paul Chakmak spoke rather bullishly about the market’s growth dynamics.

As in all good debates, both sides have sound arguments.

Bears, for example, can point to these statistics:

• Nevada reported that taxable sales declined 5.7 percent in August, the biggest drop since 9/11 torpedoed tourism six years ago.
• Population growth. While 6,142 people moved into Nevada in the last monthly report, that was 22.1 percent below last year.
• Commercial construction has been strong, with multibillion-dollar properties and infrastructure and services being built to handle the burgeoning population, but the number of permits issued recently fell by 7.6 percent.
• Further, on recent conference calls of community banks that specialize in commercial lending, executives have talked of a softening of office space next.
• Industrial properties. Vacancy rates are starting to grow in what has been a strength of the local economy. The rate was a relatively low 4.8 percent in the third quarter, but has been rising over the past 12 months.
• The absorption-to-completion ratio hit 0.48 percent in the quarter, meaning more than half the new space was empty.

Bulls have their own statistics..... Gaming analyst Joe Greff of Bear Stearns recently compiled a 45-page report in which he showed the impact of waves of new resort construction on the casino industry in Las Vegas.

History should repeat itself, and the deluge of new hotel rooms coming to Las Vegas in the next several years should boost business, he concluded.

Greff expects $39 billion in casino hotels, condo-hotels and timeshares to open between 2007 and 2011, increasing rooms by 5.8 percent a year compared to the 1970-2006 average of 4.7 percent.

History shows room demand growth slowest—3.1 percent yearly—when capacity grew the least—0 percent to 4 percent. Greatest demand growth—10.4 percent—came when room supply increased 8 percent or more.

Greff calculates the coming round of room growth will lead to a 10.1 percent increase in visitor spending, which is actually a click below the historical average of 10.2 percent.

He sees gaming revenue growing 10 percent, beating the historical average of 9.8 percent. Convention revenue should grow 12.7 percent against history’s 14.4 percent. Entertainment and other revenues may rise 9 percent against 9.6 percent.

One interesting aspect of his study is the effect of these major projects on stocks.

Stocks of Strip operators (Harrah’s and MGM Mirage) rose 31.1 percent the year before big capacity additions in the market and 48.7 percent the year of the additions, then dropped 4 percent the year after.

Stocks of locals casinos (Boyd and Station) fell 19.3 percent the year before big capacity additions, rose 28.1 percent the year of, and fell 22.8 percent the year after.

Meanwhile, the development of non-gaming revenue, rather than being a weakness if consumers cut back spending, can be seen as a strength because all the new activities outside of gambling make Las Vegas a much more attractive market.

Of course, bears have another view of the megaresort development. They see 35,000 rooms aimed at the high end of the market as too crowded for everyone to survive.

For example, use Greff’s estimate of $39 billion in capital expenditures on casino resorts. To get just a 10 percent EBITDA return means generating $3.9 billion in gaming revenue, or 10 times what the Bellagio is expected to do this year. A 15 percent return would take 15 new Bellagios.

And forget about the old standard of a 20 percent return. Even the most bullish bull can’t believe Las Vegas can generate new gaming revenue of 20 Bellagios over the next four years.

Those kinds of hurdles are one of the reasons selling condominiums and building, then selling, grand shopping malls are important to help finance these projects.

They also suggest that some projects will not get built, no matter how deep-pocketed and experienced a developer may be. And they suggest some projects that are built will fail. If so, patient investors could pick up the pieces.

Pinnacle Entertainment CEO Dan Lee wants a Las Vegas presence to create a national casino network like Harrah’s. But he has been unwilling to pay the extravagant prices being paid for Strip real estate and per-room construction costs.

However, on a recent conference call, Lee indicated how Pinnacle can get a Sin City megaresort: Wait for the shake-out that overbuilding will bring, then snap up a bargain.

By Roger Gros   Sun, Dec 16, 2007

By Roger Gros   Sun, Dec 09, 2007

By Roger Gros   Sun, Dec 02, 2007

By Roger Gros   Fri, Nov 30, 2007

Mark Giannantonio has one of the toughest jobs in the Atlantic City casinos. As the president and COO of the Tropicana Casino Resort, Giannantonio must operate his property in the face of criticism from the media, politicians and former employees. A longtime Trop employee, Giannantonio was named president when Fred Buro was relieved of his duties several months ago. In January, the New Jersey Casino Control Commission considers a permanent license for Columbia Sussex, the owner of the Trop. With hundreds of layoffs and cost cuts, some will oppose the license, most notably, the Atlantic City culinary union, Local 54. Giannantonio disputes claims that more layoffs are planned, and discusses the improvements, marketing changes and growth plans for the Tropicana. Giannantonio spoke with Global Gaming Business Publisher Roger Gros from his office at the Tropicana in October. To hear the full version of this interview, go to www.ggbmagazine.com, click on the GGB Podcast button and scroll down to this interview.

GGB: One of the justifications for the changes that have been made at the Tropicana since Columbia Sussex took over is that the company has a different business model than a traditional casino company. Can you explain what that means?

Giannantonio: Sure. The transition took place on January 3. Any time one company takes over another company, there’s bound to be your ups and downs. In this case, there were significant changes. We looked at every department and attempted to “right-size” them relative to our revenues. That’s never easy because you’re affecting people’s lives. The good news is, the majority of that process is over.

Now, we’re focusing on our employees, our property and our customers. We think we’ll be able to bring the property to new levels.

You are an example of the many loyal employees you have here at the Trop. You’ve been here 20 years and many other employees are day-one employees. What are you doing to show your appreciation for their continuous service and loyalty to the property?

Without a doubt, and I can say unequivocally, we have the best and most loyal employees in Atlantic City. It’s amazing to see how many employees have been here 15, 20 and 25 years. They are very dedicated. During the time of transition when we were getting the negative press, it was our employees who stuck by us and continued to serve the guests with first-class service, even when we were being told we weren’t a first-class resort. That was a lot of rhetoric and there was no basis for that argument.

The permanent license for Columbia Sussex is up for approval in January. Local 54 of UNITE HERE has announced it will oppose it. What will you do to convince the Casino Control Commission that you should be granted a license?

There are thousands of people who are working hard to make this the best casino resort in Atlantic City, and in the country, to be honest.

We have thousands of people who come to this property every day who enjoy their stay and don’t even hear the rhetoric. We meet and exceed their expectations.

So there’s no basis for a denial of the license. We have a more entrepreneurial spirit than the other public companies, as demonstrated by the chairman of our company, Mr. (Bill) Yung.

We believe we’re going to get licensed and the employees and management team are working hard to make this property a success.

Is it an advantage or disadvantage being a private company?

Clearly, it would be an advantage if we had another property in Atlantic City or even in a nearby jurisdiction. There would be synergies we could use.

We’re owned by a very diversified company. We own over 80 hotels and 14 casinos. And there are advantages to being owned by a company that is so diversified. There were things we were able to do on the hotel side, for example, that helped to improve the customer experience. On the casino side, we are looking to leverage the business at our other casinos to bring customers to our property here and vice versa. We’re just tapping into that at this point.

Tell us about some of the physical changes that have taken place at the Trop since the company took over.

In May of ’07, we completed our South Tower room renovations, of about 500 rooms. This project turned out to be very nice and was completed just prior to the summer. These rooms are geared toward our slot players because it’s right above the South Tower casino floor.

Simultaneously, we renovated the South Tower casino floor, giving it the look and the feel of the Quarter. That’s our goal, to bring that look and feel to the older parts of the property. We’re going to take that same look and introduce it to the North Tower casino floor where our table game area is. Hopefully that will be completed by February of ’08.

We’re also going to build a fabulous center bar in that North Tower area, which will drive people into the casino from the Quarter and totally renovate our signature restaurant Il Verdi and our casual restaurant the Seaside Cafe.

There were plans to build a tower on Belmont Avenue, about half a block away from the Trop. Are those plans still on the drawing board?

Mr. Yung would like to add another tower to our property and we’re discussing this option with a few individuals in town, but that takes time.

We’ve got several new mega-casinos coming to town over the next few years. How will the Trop compete with them?

I’ll go back to what I said earlier. We do have the best employees in Atlantic City, and as long as we take care of our guests and exceed their expectations, we’re going to do very well here. We have a great building. The Quarter has been key for us to be able to take our customers to the next level.

These projects are going to be fantastic for the city and for us. It will be just like when the Borgata came into the market. I was very optimistic that the Borgata would help the city grow and that’s exactly what happened. These projects will do the same thing, and as a result will help us all succeed.

By GGB Staff   Fri, Nov 30, 2007

When the Cannery opened in North Las Vegas several years ago, many in the Las Vegas locals community were confounded by its location. Situated in an industrial section of North Las Vegas, there were few residences nearby and fewer of the profitable customers that made other locals casinos successful. But a funny thing happened. With a quirky theme and innovative marketing, the Cannery became a hit. And several expansions later, the Cannery is one of the most successful locals casinos in Las Vegas. Bill Wortman, who along with partner Bill Paulos has achieved an enviable reputation in the gaming industry, spending many years at Caesars Palace, talks to Global Gaming Business Publisher Roger Gros about how the company has become one of the hottest smaller companies in the gaming industry. To hear the full version of the interview, go to www.ggbmagazine.com, click the GGB Podcast button and go to the archives.

GGB: Explain how the company got started.

Wortman: We started Millennium Gaming, which was the predecessor to Cannery Casinos, in 1996. Bill (Paulos) had recently left as president of Primadonna Resorts, I had my own company and I was operating small casinos in the state of Nevada. Bill and I had been friends for about 30 years at that time, so we decided that it would be a very good mix for he and I to team up and build a gaming company.

Our first project was the Greektown Casino in Detroit, and from there we went on to do the Cannery Casinos here, the Rampart Casino here and some other things outside of Nevada.

The Detroit experience must have been very challenging. That was when the casinos were first legalized in Detroit, and the Greektown area is considered a historic area; so you had to build the casino on the back of a block of historic storefronts. That must have been very difficult to put that into place.

The entire process in Detroit was a difficult process. The state had determined that there would be three licenses in the city of Detroit, and those would be bid-for licenses. We competed against 11 other applicants for those licenses including Mirage Resorts, Mandalay Bay, MGM, Donald Trump, Isle of Capri... companies that were very large names in the gaming industry. Mandalay, MGM and ourselves were the three selected. We were proud of that victory.

Were people surprised when you... partnered with the Sault Ste. Marie Tribe of Chippewa Indians... were picked as one of the three license winners?

I don’t think they were. The tribe is a very well- known enterprise in the state which had operated several casinos in the Upper Peninsula of Michigan, and when we were in the process of the selection, there were other notable local individuals within the Detroit area that were part of the group. The tribe bought them out before the opening of the casino, but I don’t think it was a big upset.

Cannery is kind of an unusual brand. What do you feel the brand conveys?

It’s a retro, kind of ’50s feel. When we talked about it, because of the area in which the Cannery sits, it’s an industrial area, so we couldn’t build a facility like the Rampart Casino (which the company manages in Summerlin) in the northwest area of town. So we looked at several themes that we thought would work well in the North Las Vegas marketplace and within that industrial area. We thought about an old brewery, but that would have forced us to build an actual micro-brewery—you can’t call it Joe’s Brewery and not have a brewery. So, we ultimately settled on the Cannery when our vice president of marketing, Tom Willer, came in and said, ‘Hey, what about the Cannery?’

We actually came to that collectively as were specifically looking at old Coca-Cola art work, which we liked. So we ultimately decided that we would do a cannery. In doing that, we came across the art that was used on vegetable crates at the time, and that art worked out perfectly.

The other facility you run in Las Vegas, the Rampart Casino, is very unlike the Cannery. When you took it over—the Resort at Summerlin it was called at the time—it was not drawing the local people. What did you see when you first got in there?

We saw pretty much a disaster. It had design flaws in terms of catering to the local community. It had marketing flaws in the philosophical view that then-current owners had implemented. The Resort at Summerlin had 541 rooms and suites, and they decided they would build a facility on the scale that they built the Scottsdale facility. When we looked at it, we saw a substantial number of houses at that area, so we thought that if you properly marketed to the local community—which the original owners did not do—and fixed the design flaws and used the hotel as the ancillary market for the casino, that we would have a much better opportunity to succeed. When we started at the Rampart, they were on the basis of machine utilization, they were probably the least-utilized casino in the local market place. Now they’re number one. So it’s gone from last to first.

You’ve operated Nevada Palace on the Boulder Highway for a long time, but you’ve recently broken ground at the site for the Cannery Eastside. Could you explain how that property will be different or similar to the North Las Vegas property?

Eastside Cannery is going to be an upgrade to the current Cannery. It will be a different paradigm because it will compete with different properties, being those on the Boulder Highway.

That facility will have 307 rooms. It’s going to be a high-rise facility. The rooms will have magnificent views of the Strip. We’re going to put a restaurant/lounge on top of that high-rise that will offer a fantastic view of the Strip. We believe that it’s going to be a complete paradigm change.

By Roger Gros   Mon, Nov 26, 2007

By Roger Gros   Sat, Nov 24, 2007

This week, on a special edition of the Global Gaming Business Podcast hear a podcast of one of the Signature Series presentations at last week’s G2E, “Dealers or Entertainers: Will Tables Ever Be the Same?”

As casinos stress entertainment to a great extent, the role of the dealer is bound to change. In this session, Global Gaming Business Publisher Roger Gros moderates a panel of experts—C.J. Graham, director of table games for the Palms Casino Resort; Vic Taucer, the president of dealer training company, Casino Creations; Barney Vinson, the author of Las Vegas Behind the Tables and the former gaming instructor at Caesars Palace; and Jimmy Wike, vice president of table game operations at Caesars Palace—and discusses the current state of table game dealers in today’s gaming industry. The insights into the motivation and expertise needed these days is very revealing.

By Roger Gros   Mon, Nov 26, 2007

By Roger Gros   Tue, Dec 18, 2007

The gaming industry is a very young business. While people have been gambling since time immemorial, it’s only been a few decades since it has been run as a serious business. And it’s even been less time since educational programs have been established relating specifically to the gaming industry and the situations that occur within it. And even so, very few of today’s executives have had the opportunity to partake in those courses during their education.

Experience, therefore, remains the crucial element to success in today’s casino business. Recently, there has been an infusion of highly educated people into the gaming industry, and that’s a good thing. They bring “professional” business practices that we may have ignored or de-emphasized for too long. But as someone who has been working in and covering the industry for 30 years, it seems to me that many of these folks have a tremendous amount of “book smarts” but precious little “street smarts.”

Don’t get me wrong. An education is a wonderful thing. Casino executives with MBAs have undoubtedly learned the basics and intricacies of running businesses of all sorts. They’re skilled in reading balance sheets, evaluating market conditions and responding to business crises. They are, in short, quite prepared to run a casino, in most cases.

But there is much more to the gaming business than education. The gaming business is unlike any other. While you can draw parallels to retail, restaurants or other service industries, there are few examples that are exactly like the gaming business. That’s why experience is so important.

There’s one company in the casino industry that won’t promote anyone who doesn’t have an MBA to a position higher than vice president. In my view, that is short-sighted and devalues an individual who may have more experience than his superiors. Ironically, this same company expects the experienced subordinates to impart the information they’ve gathered from their years on the job to the more educated superiors. With no path toward promotion, what inspires the less-educated subordinates to fully participate in this process?

Again, education is important. With the technological advances rushing at the industry every day, an executive must possess deep analytical skills, the ability to understand computers and how they work, and the critical thought process found most frequently in the classroom. I recognize that education is essential to develop this ability.

At the same time, however, this process must be balanced by the experience learned during the day-to-day operations of a casino. The gaming industry is a people business. And the wants and needs of people cannot always be discerned by a computer, impersonal data and reactions mapped out in a classroom. Every situation is different. Yes, you can be guided by your education and your analysis, but when it comes to making decisions that impact people—whether they be customers, employees or investors—you need to have more than just an MBA. You need to have deep empathy, sincere understanding and a desire to do what’s right for the people involved.

Remember, learning doesn’t end when they hand you that sheepskin. Learning is a process that should continue throughout your career, no matter what job you hold or position you attain. Listening is a very underrated skill. You can learn very important things from everyone in your organization: from the lowly front-desk clerk or dealer to the regional vice president or chairman of the board. And don’t forget those outside your organization. I find that I learn some of my most important lessons from my customers and even people who have no relation to my business. That’s where critical “listening” is crucial.

Experience is a great teacher. Don’t discount what these people have to say. Yes, encourage them to return to school to obtain the degrees necessary to advance within your organization, but don’t just shuttle them off until they return with the requisite learning. Hold them close. Value their advice. And, best of all, profit from their experience.