By Justin Cohen   Mon, Oct 05, 2009

We all know the marketing buzzwords of the gaming industry, from direct mail to comps to personal hosts. But there's a new buzzword in marketing these days, one that can mean communication with your customers that is even more instantaneous than calling a host over.

It relates to all the new networks that are becoming essential tools of the nation, from Congress to the boardroom. We may have first seen it used by our kids, but we can no longer ignore the impact or potential of social media.

What is social media, and why do you need to pay attention to it?

Social networking is clearly the hottest topic in marketing, and something that every business needs to know about. In this article and in the series that will follow, I will demystify social media and help you to understand the implication it has on the gaming business.

According to Wikipedia: Social media is online content created by people using highly accessible and scalable publishing technologies. Social media is a shift in how people discover, read and share news, information and content; it's a fusion of sociology and technology, transforming monologues (one to many) into dialogues (many to many) and is the democratization of information, transforming people from content readers into publishers. Social media has become extremely popular because it allows people to connect in the online world to form relationships for personal, political and business use. Businesses also refer to social media as user-generated content (UGC) or consumer-generated media (CGM).

Translation: The phenomenon of social media is a historic transformation. Throughout history, the masses have absorbed whatever message and content that those in power wanted them to absorb. From monarchies and religious leaders to newspaper barons and cable news moguls, the message has always been crafted at the top and then trickled down. Social media is rapidly changing that.

Using websites like Facebook, Twitter and YouTube, people can now reach out across the street and across the globe simultaneously, be it for social reasons, business reasons, or both. According to Nielsen Online, social networking now ranks above email as the fourth-most popular online activity. The same report shows that while total time spent online grew by 18 percent in 2008, time spent on social networking sites grew by a whopping 63 percent.

It is important to recognize who all of these new users are. While there is growth across most all demographics, Nielson points out that the strongest growth in 2008 on Facebook, the internet's largest social networking and sharing site, was in the critical 35- to 49-year-old segment, and that Facebook added nearly twice as many users who are 50-plus in 2008 as it did users under 18.

Some estimate that as of the middle of 2009, there are as many 35- to 49-year-olds on Facebook as there are 18- to 34-year-olds. According to Wired magazine, March 2009: "Women over 55 remain the fastest-growing group, and growth among the teen and college-age set has been relatively paltry. In absolute numbers there are now even slightly more members between the ages of 45 and 65 than there are 13- to 17-year-olds."
    
Gaming Applications
So this begs the question, what does this mean for business?  And more specifically to this audience, what does it mean for the gaming business?

At first, it is pretty frightening to think that consumers now have the megaphone, and that they get a say in crafting and broadcasting the message. But for those forward-looking executives that recognize the magnitude of this paradigm shift, and embrace the possibilities, there is a major competitive advantage to be had.

Never before have there been so many direct channels to communicate with your customers. From the operation (and evolution) of loyalty programs to the messaging of special promotions, marketing executives can now tap into seemingly endless avenues for reaching out to their existing customers and sourcing new ones.

It is easy to look at the broad landscape that is social media and miss out on the most critical element that social media provides to companies-the ability to expand on the relationships that you have with your existing and prospective customers. From iPhones to Blackberries and Facebook to Twitter, technology has rapidly moved us into a far more integrated world. Businesses from your bank to your favorite sports team to your favorite casino are working to find ways to integrate themselves into your life in new and different ways.

Be it a contest that you run or a video that you post, the real magic of social media for a business happens when your content goes viral. When content goes viral, it means that hundreds, thousands or even millions of people use email, sharing sites or other means to tell their friends and followers about your product or service.

The chart on the following page shows top sites by market share of the "sharing" market.

Here are a few anecdotal examples of social media's impact, from online marketers around Las Vegas.

A marketing coordinator at a major Strip resort was managing her property's Facebook page and saw a post from a woman who had just reserved a room for her birthday party in Vegas. She was wondering if anyone could recommend a show and a restaurant for her birthday celebration. The marketing coordinator reached out to the concierge desk and had a concierge respond to the future guest with recommendations and an offer to help make arrangements for the birthday celebration. The guest took the concierge up on the offer and ended up holding her party (dinner, show and club) on property, leading to the property keeping significant ancillary revenue in house.

Where has there ever been a platform for guests to pose questions like this and for us as marketers to have an opportunity to score points with our guests before they even arrive? As social media channels continue to evolve and we become more savvy at capitalizing on the opportunities they provide, stories like this will be commonplace, and our relationship with our guests will extend well beyond the current boundaries of check-in to check-out.

On the flip side of the previous example where Facebook provided an opportunity to positively impact the guest pre-trip, some savvy properties are starting to see the potential for service recovery through Twitter and other websites.

Imagine this. A guest comes to your property and for whatever unfortunate reason had a bad experience with one of your blackjack dealers. The guest then goes back to his room and Tweets about the terrible experience he just had. Never before have we as operators had the ability to listen in when our customers go home and tell their friends and colleagues about their experience at our property.

Now, using simple search functionality on sites likes Twitter, we can have team members responsible for monitoring all references to our property (and those of our competition if we see fit) and responding as needed with the voice of the property.

Imagine if we had reached out via Twitter and offered this guest an outlet to tell his story to casino management and then taken whatever steps necessary to turn a negative into a positive. These tools can be used across nearly all of the consumer-facing departments of the property, from F&B and slot marketing to entertainment and poker.

Twitter is being embraced across the hospitality industry. For example, Simon Cooper, the president of Ritz-Carlton, Tweets regularly to his nearly 2,000 followers. Not only does this give Mr. Cooper a direct line to speak to those who are following him, but it also provides employees and customers alike a way to reach out to him directly. (Want to follow Simon Cooper? http://twitter.com/Simonfcooper.)

What's Next?
It is not surprising that so many properties are unsure of where to start when it comes to social media. The reality is that the landscape is crowded, and there is more to a comprehensive social media campaign than setting up pages for your property on Facebook and Twitter. From video optimization on your own site and through websites like YouTube and Viddler to social bookmarking on Digg and Delicious, it is important to take a step back and come up with a plan for covering all of your bases.

A July 2009 report from Razorfish points out that 40 percent of consumers using social media are using it to learn more about brands. Less than one year into the explosion of social media as a focal point on the marketing landscape, this is pretty incredible penetration.

In the coming articles in this series, we will teach you how to devise and implement a comprehensive social media marketing strategy. We will also continue to track the explosion of social media and report back on its many applications to the gaming industry.

This article is the first in a series on how to use social networking to market your casino.

By Michael Gore   Mon, Oct 05, 2009

There are currently nine well-established casinos operating in the remote border town of Bavet, Cambodia. Bavet is a 1½-hour drive from Ho Chi Minh City, and is the main commercial crossing between Cambodia and South Vietnam. In April 2009 our group decided to test both our management and casino operation skills and open a small casino resort in Bavet. Our total intended gaming offering consisted of 20 tables and 62 slots. We opened the Casino Royale on June 19, to 1,400 customers.

For many years while managing Asian casinos, I have searched for an owner/investor tolerant enough to put up with my acerbic nature, but flexible enough to allow a modern approach to customer relationship development and employee management. On April 13, I met with several Malaysian property developers who seemed to have an appropriate business methodology.

These businessmen were both informed and decisive. Together we agreed in principle to embark on a casino project in Bavet at flank speed. They had done considerable research and preparation prior to our initial meeting, and were ready to move fast. I had to get up to speed quickly.

I have known about Bavet for some time, but I had never been there prior to our engagement. It is a rough-and-ready place with no medical facilities, few decent restaurants, zero sanitation and zero entertainment besides casinos. There are no guarantees in business, and opening this property on an extremely limited budget, in a very short time frame, would not be easy. However, it sounded like a lot of fun, so I agreed to participate.

Business Environment
The nine casino operations in Bavet typically have 200-plus hotel rooms, 100 or more casino tables and 150-200 state-of-the-art slot machines. Some are very well patronized. Several other properties are not meeting costs and are literally going bankrupt. Of particular note as good operators are the New World Casino Hotel, the Le Macao and the Las Vegas Sun. The Moc Bai Casino Resort is busy, but simply rents out tables on a monthly basis to junket operators. The new Chateau Casino Resort is still under construction but is well designed and looks fantastic. Most of these properties have established marketing departments, facilities for transferring cash out of Vietnam to Cambodia, and an entire network of Vietnamese contacts and Vietnamese-speaking gaming staff.

As in Macau, junket promoters completely dominate the casino marketing business. The promoters control the vast majority of the customers in Bavet. No casino in Bavet operates, or even attempts to operate without junket promoters. The promoters assist in bringing cash across the border, facilitate transportation services for players, and provide credit to the customers. They find new patrons and assist in bringing casino customers from their homes in Vietnam to the casino resorts in Bavet.

Casino Opening Process
Anyone who has had a position of responsibility for a casino opening understands that the process is, at the very least, difficult. There are always too many things to do and not enough time to do them. There are a multitude of competing interests that must be addressed quickly and fairly. If you pay the staff too little it will be difficult to recruit. If you pay too much it will be difficult to reach profitability. Control supplier prices too much and the suppliers will cut corners. Lose control of suppliers and they will fail to deliver the product on time, or to the standard required. Costs can quickly balloon out of control in Asia and schedules may have to be completely abandoned.

As you might imagine, opening a casino in Cambodia has a different order of problems than in the West or even Macau. It is often impossible to get credit from suppliers. On the other hand, if you pay them up front, they simply may not deliver at all. The very nature of a start-up organization precludes the use of existing supplier relationships. Normal delivery, transportation and customs clearance problems are exacerbated threefold. You must plan on crucial supplies arriving late or not at all. The achievement is in how you overcome the obstacles.

For example, if your playing cards do not arrive before the opening date, how do you open card games? We actually had to buy locally manufactured generic “Bicycle” cards from a Phnom Penh supplier at an exorbitant price. The alternative was to delay the opening. Whatever happens, you must overcome the problem. No layouts? Use green felt and stencils. The tables don’t arrive on time? Build them locally. Always have a Plan B! Do not delay the opening under any circumstances!

Staffing
Since I was working with Malaysian investors, I made the decision to recruit primarily Malaysian management staff. Having worked and lived in Malaysia for many years, this call was not difficult. I know from personal experience that Malaysians generally are hard-working and disciplined individuals who give real value for money. To balance things out we also recruited some great Filipino executives for their professional game/job knowledge and their customer service abilities.

This year, the Macau government decided to kick out all the foreign casino workers who recently helped make that country the fantastic casino center it currently is. They have done this by denying work visa extensions to most of the foreign casino workers there. The government gave little warning for this visa cancellation process. As a result, hundreds of experienced casino workers are coming back to the region from Macau without much savings and without jobs.

I must give a personal thank you to Chief Executive Edmund Ho and the Macau government. Thanks to this exclusion policy, we were able to find a great core group of experienced casino executives at competitive compensation rates.

Communications
Almost all Malaysians speak three languages minimum, and Asian communication in general is greatly facilitated when they are around. Even with this management asset we were still faced with many communications issues. For example, our front-liners—the Cambodian croupiers, waitresses, cleaners, etc.—do not usually speak English, Vietnamese, or even Chinese. They only speak Khmer, but often cannot read Khmer. Our customers, the Vietnamese, do not speak or read English or Khmer; they only understand Vietnamese. Our VIP service girls speak Vietnamese, but not Khmer or English. Sometimes we cannot even effectively tell our own staff what to do! True multi-language individuals on the border are in great demand, and command relatively high salaries. They were usually priced out of our budget.

As a result, we must go to extremes to communicate effectively. You cannot just explain to the staff how to clean a toilet; you must do it yourself and physically show the employees. The menu cards must be completely multi-lingual. They must be simple and easy to remember so that Khmer staff who cannot read can recognize or memorize the number/location of the desired item. Pictures are helpful but take time to shoot, select and lay out properly.

Settling gaming disputes can be extremely difficult because of the complex and esoteric game rules involved. Communication is the most daunting problem in Asia, but is the most satisfying area to overcome. When the place finally works, and the staff works together as a team, it is a great feeling.

First Steps
During a fast trip in mid-May 2009 to evaluate Bavet business levels, I was reacquainted with Vellu Pillai. He is an ethnic Indian Malaysian who had worked for me in a junior capacity in the early 1990s at Genting Highlands Resort. Though I did not really remember his work capability from the 1990s, his attitude was good and he spoke some Khmer in addition to Mandarin, English, Cantonese and Tamil.

Primarily on a cost/value basis, together we decided to open the resort with “virgin” dealers who had never dealt a game before. Using virgins also meant that it was less likely that they had already learned to steal at other casinos.

Pillai posted some job vacancy posters on some local notice boards and we performed hundreds of multi-lingual job interviews in two days. Due to the tight time frame to opening we needed to start the training school two days after that. Extensive background checks are difficult in this environment, and Cambodians often just change their names and identity cards at will. You must just make a lot of phone calls to people who may not speak English, and who may not want to talk about ex-staff. Some miscreants will always get through. We have caught some stealing already, but the problem has been less than expected so far.

While the training school was going on, we also had to do some fast casino renovations. Our casino hotel building was basically a shed with some air conditioning. It required a lot of work. The hotel rooms were even worse than the casino hall. The entire renovation process and even the non-casino recruitment was accomplished at top speed by our Malaysian shareholder representative Linda Chong Lay Lin. This hard-working and highly intelligent Malaysian executive removed most of the usual opening problems from my back. She single-handedly got us ready on time. I only really had to worry about whether we could make money in the casino.

Target Market
Choosing the primary and secondary target markets can sometimes be an intuitive process. In this case, it was made even more difficult than usual because of our determination not to issue credit, and not to use junket promoters. Because of this policy, brand differentiation was inevitable. But what gaming limits do you offer? How do you get the players in? What service can you give that the other casinos are not offering?

Everyone says they will give “great customer service” but this is usually exaggerated. The real question is: What can you do within your staff abilities that is cost-effective and has adequate margins? The primary market-segment determination often involves more art than science when opening in a foreign and ultra-competitive environment. A final factor that also had to be considered was the limited time we had for training and developing staff.

Our mid-May evaluation revealed that the existing casinos did not respect or pay attention to low-end players. Because of a per-table taxation policy and low marginal tax rates, virtually all management effort at the existing Bavet casinos is expended on the extremely competitive VIP play. The small players were left to fend for themselves.

Some casinos were later found to be paying junket commission rates in excess of 97 percent of theoretical win. The big answer for us was obviously to become a “grind joint!”

We went after the grind market with a vengeance. Many of our tables were opened with $1 and $3 minimums to start. Of course, we allowed up to 600 times wagering spreads to attract customers and to give ourselves the potential to make some money. The problem we always deal with is volatility.

Additionally, we had to remove the grind players from junket control. This was a big problem. Junket promoters control players by using non-negotiable and promotional chips and controlled cash-outs. To exclude the junket operators, we turned back a page of history. We removed the junket control mechanism and returned to the late 19th century technique of using cash notes for much of our gaming!

We are aware of the potential internal control problems, but the customer response was fast and amazing. The smaller players love it. They love to play with cash and to leave and walk out at will. There is no cash-out required when you gamble with cash. Our computer system has been modified to handle cash inventories. And we love paying no commissions to junkets.

Stealth Opening
As is usual in Cambodia, there is considerable risk in starting a new business. There is always the potential that existing business operators with strong relationships with local authorities and law enforcement could use these to interfere with our opening. They could take obstructionist action against us based on false land ownership claims, through abuse of political power, or based on non-existent legal issues. The solution was to get open fast and to have the business operational before anyone was really aware what we were doing.

The problem then: How do you advertise? How do you let the customers know that you are open, and even harder, get them to come in to try your gaming product? How do you do that in a facility that has failed before, and in a business that was previously aborted just before opening day? This was actually due to a lack of business confidence in the then-Korean shareholders. The previous owners walked out on staff without paying the last three months’ salaries. As a result, our property also had some credibility issues to overcome. The final issue is that even with enlightened bosses, advertising expenses are not readily accepted in the Asian budgeting process for small “start-up” companies. It is difficult to get advance approval for these costs.

The first part of the solution was to “buy the players” with high-value match play coupons. The second part involved hiring an individual who knew most of the Bavet players personally, and getting him to distribute the match play coupons to players he knew were legitimate. The third issue was to pay him enough to ensure loyalty and make the effort worthwhile, while not upsetting the fairness of the entire employee pay scheme.

Other Issues
Many things happened during the opening process. We drove the staff very hard, and the first casino manager and a few executives eventually resigned to join the pre-opening teams for the new casino operations opening in Singapore in 2010. In addition, many of our front-line Asian staff are quite spiritual, and have a ready acceptance of ghosts and other non-Western spiritual phenomena.

Indeed, shortly after opening, Anthony King, the New World casino manager, called me up and asked if I had the local number for “ghost busters.” It seems that six of his croupiers went into trances and convulsions, and started speaking in tongues. They advised that they saw nine ghosts walking around the staff quarters. This has happened to my staff on several occasions, but “nine” is an unusual number for ghost appearances.

We found out that the Vietnamese are real gamblers. They are prepared to wager a very high percentage of their capital on individual bets like Thais, but otherwise they play in a very aggressive, “value-oriented” manner. They are completely different than Malaysian, Singaporean, Australian or Indonesian gamblers.

I love ‘em!

By Michael Gore   Tue, Oct 06, 2009

There is no name anywhere on the outside of this property (above) in
Cambodia. It used to be called Caesars, but now may be the Titan
King, but you can't tell because they have never had signage. For their services,
junket promoters demand and get more than 75 percent of the aftertax
casino theoretical win.

They take this across the board and do not limit themselves to high-end
tables, but take any player who walks into the resort. Their presence is so
ubiquitous that even a $5 baccarat player will use the non-negotiable
chips/play incentives offered by the junket promoters. The promoters actually
co-opt all players who walk into the casino, and not just their own recruited
players. They achieve this by threatening to withdraw marketing support
from the casinos that do not allow them access to the walk-in players.

The casinos end up paying junket-style commissions to every player who
comes in the door. As a result of our initial review, the primary questions the
potential investors had about Bavet, Cambodia were:

• Can we possibly make money in this ultra-competitive environment
  in a small, limited property?
  

• Can we operate without being completely dominated by junket promoters
  and without giving potentially uncollectable credit to this group?
  And what can we do operationally to limit their dominance?
  

• Can we make an operational profit?

By Roger Gros   Mon, Oct 05, 2009

When revenues began to slide in Atlantic City three years ago, operators were concerned, but considered it a small blip that would be rectified when the new, huge mega-resorts opened: Revel, Pinnacle, MGM Grand, the Wally Barr/Curtis Bashaw properties and later whatever was developed at Bader Field.

But when the downturn deepened and regular players began to disappear-some for good-the concern became anxiety. And when, one by one, the major projects were either canceled or indefinitely delayed, panic began to take over.

Reality has now set in. Longtime players have severely cut back their visits or disappeared entirely. Companies with properties in Atlantic City have seen their stock prices decline because of their "exposure" to the market. Employees have been laid off and some who remain have sparked a labor war that only harms the market further.  

It appears the "perfect storm" has hit Atlantic City and submerged the business that was for 30 years so dependable.

Competition from surrounding states is stronger than initially anticipated.

"We underestimated the impact of Pennsylvania gaming," says Trump CEO Mark Juliano. "We didn't realize that they would be able to comp at almost the same level as we do, so that has become a big problem."

"Convenience gamblers" have all but disappeared.

"For years, we worked hard to become a destination resort," says Dan Nita, the Harrah's executive formerly in charge of the company's four Atlantic City properties. "Suddenly, we are, but not in the way we wanted."

The national economy has hit all gaming destinations hard, but none harder than Las Vegas and Atlantic City. While gaming was once thought "recession-proof," it's now clear that the economic downturn has impacted the Atlantic City casinos more than any previous recession. And the most troubling thing is that people's gambling habits are changing, and may never return to the level once enjoyed by Atlantic City casinos.

So what is to be done? With the convenience gambler gone and existing gamblers changing their habits, will Atlantic City ever truly return to the numbers it posted for nearly 30 straight years?

Global Gaming Business met with the movers and shakers in Atlantic City-public officials, regulators, casino executives and other interested parties-to determine if there is any solution to this situation. Most agreed casinos will have to build a new business model that will take years, but surprisingly, all agree on five major points that will start Atlantic City on the road to recovery.

1  Get Revel Open
As the last remaining mega-project still under way, the completion of Revel Entertainment casino resort is crucial.

"There's no question that the most important thing in beginning to remake Atlantic City is to get Revel finished," says Joe Kelly, president of the Greater Atlantic City Chamber of Commerce. "When Revel opens, it will return attention to Atlantic City, bring a new level of visitor and demonstrate that Atlantic City is more than just gambling."

Mac Seelig, president of local slot manufacturer AC Coin & Slot, says the opening of Revel is crucial. 

"When Revel opens up, it's going to be a very exciting place," says Seelig. "And once that opens up, that's going to create a good buzz for Atlantic City. The other operators are all excited about Revel opening. It's going to have all new equipment, state of the art-that will cause a real big explosion for us here and all around the region."

The problem with a commitment to getting Revel open is that there is little anyone can do to assist in getting it open, because it all depends on acquiring the remaining finances.

CEO Kevin DeSanctis is doing his best, even if it means defending the Atlantic City market.

"Some of the biggest detractors are people who have never worked here," he says. "I think Atlantic City has and always has had tremendous potential, but because it's been unable to achieve that potential, people continually are down on it. But just because we haven't been able to achieve it doesn't mean it's not there. One of the missing links is, I don't think the industry has ever, one, committed the capital or, two, used the most important natural resource it has-the ocean-to its best advantage. That's one of the reasons I am so confident that Atlantic City can be successful if the proper projects are built here."

Harrah's Nita says the opening of Revel would be a sign that Atlantic City is alive and well.

"We need some wins on the board," he says. "The opening of Revel would give us a great public relations tool. This would drive visitation from people who might not have thought about it. It gives us a critical mass that starts to make people sit up and take notice."

Like Revel, the Borgata targeted Atlantic City "rejecters," those who had never visited or not visited in a long time. Bob Boughner, president of the Borgata, says those people are still out there.

"We expect Revel to generate the same market growth that we brought to Atlantic City," says Boughner. "But we had the wind beneath our wings-a very strong economy. So it will be more difficult for them."

Boughner sees some reluctance from investors in sinking money into a project such as Revel, although the project did get some good news on the financing front last month. (See page 6.)

"The jury is still out," Boughner says. "No one wants to take their money and obtain a yield that is significantly lower than a risk-free investment. You take on an enormous amount of risk with one of these buildings, and that risk is usually mitigated by a good economy and an excellent management team, which they have at Revel in Kevin and his staff. So I'm not sure if the time is right now."

2  Government Inaction
In New Jersey, it's very dangerous to get the state government involved in any private industry. For years, unnecessary regulations and an adversarial attitude strangled the growth of the Atlantic City gaming industry, until the election of Governor James Florio in the early '90s changed that outlook. The industry has been supported by virtually every governor since then.

But the bad news, according to former Atlantic City mayor and now state Senator James Whelan, is the push by the horse-racing and VLT industry to install slots at New Jersey racetracks.

"Their argument is that it's happening across the river (in Pennsylvania and New York) so why not let it open it up here?" he says. "We're losing New Jersey customers to other states, so why don't we just do slots too?

"Well, there are clear arguments against that. We have billions invested here based on the assumption that, at least in New Jersey, that would be it. That's not fair to people who have invested here or realistic to expect new investment here if that's not the case. We can't constantly have this threat hanging over us."

New Jersey Governor Jon Corzine says he has formed a commission to study the impact of slots at racetracks and has appointed representatives from both sides of the argument. He says he doesn't want to negatively impact the state economy.

"Without question, South Jersey is a potent economic engine critical to New Jersey's emergence from the current global recession, with Atlantic City and the gaming industry being the nucleus," he says.

Corzine would not, however, rule out adding slots to racetracks, which are backed by many powerful members of his own party, including the Senate president and former governor, Richard Codey, who has relatives working in the racing industry.

"It is essential for the gaming industry to work together to find a long-term funding solution that will allow both racing and casino gaming to thrive in New Jersey," he says.

Trump's Juliano is serving on the commission studying the impact of slots at racetracks. He believes it's a crucial moment in the development of Atlantic City.

"You have to look at the investments we've all made in creating these facilities," he says. "One of the great things about us is the way we invested. Now, you're going to have competition from a racetrack that throws $2 million into a slot facility?

"I don't think putting slot machines at the racetrack would be good. Horse racing is going to have to find a way to make itself attractive to clients who are interested in horse racing."

DeSanctis says this is an issue that he discusses with his potential investors, but has no resolution in sight.

"Governor Corzine has been incredibly supportive in working with the industry and assuring the industry that as long as he is the governor of this state, he will not allow that to happen," he says. "So we have friends. But at the same time, the legislature is facing budgetary problems, so it is a problem we will have for the foreseeable future."

"It's frustrating," says Whelan. "Horse racing is a dying industry. And we've done all we can for them. In '01, the legislature enabled 15 off-track wagering facilities. We have three that opened in the last two years. Where are the other 12, and why has it taken so long for those three to get open? It seems like the tracks want to do nothing to help themselves. They want it to get so bad that the only possible solution is slots."

While Whelan is not optimistic about defeating VLTs, Juliano says the legal definition of a slot machine vs. a VLT may force a statewide referendum where he hopes VLTs could be defeated.  

"We don't think it can meet the constitutional challenge we would pose to it," he says, "because of that discrepancy between VLTs and slot machines being so ambiguous."

So the best medicine for a healthy Atlantic City, according to most, is government inaction.

3  Clean Up the City
The perception of Atlantic City continues to be a problem, according to everyone interviewed. Although the city is light years ahead of where it was 20 or even 10 years ago, there are still pockets of blight that impact a visitor's impression of the town.

The first step should concentrate on the Boardwalk blocks in the middle of town, says Whelan.

"There is clearly blight that could be very easily cleaned up," he says. "That takes will, more than anything else. So continuing to clean up the town and improve the aesthetics is important."

While the city can start the process by demolishing abandoned buildings and enforcing the existing codes, it may come down to the use of eminent domain to assist a developer who comes to town with a good idea-and money.

"I would be inclined to use eminent domain," says Mayor Lorenzo Langford, "if necessary. Obviously, we would have to know the specifics and particulars. With respect to the Boardwalk, it's amazing to me that we are a resort town with a boardwalk, but we don't have a ferris wheel. We don't have a roller coaster. You can't call yourself a resort town with a boardwalk and amusement piers without these items. I think we would do well to bring those kinds of attractions-along with skating rinks, movie theaters, bowling alleys-right in town."

Juliano agrees that this tool needs to be used.

"I think at the end of the day, eminent domain is the only way to get in there and clean up some of these properties," he says. "But of course, that requires not only the city being willing to do it, but developers and operators being willing to make the investment that would require it. So, I think the expansion of these footprints, and trying to get the city to push back from the Boardwalk up to Atlantic Avenue, so we can somehow create a pedestrian walkway on Pacific Avenue, is important. It's not a place where customers feel safe walking now. Even if you felt safe, there's no reason to walk."    

4  Tax Breaks and Incentives
For years, Atlantic City has been cut out of state incentive programs that are offered to other municipalities. Tax breaks, the creation of urban enterprise zones and other development incentives have been unavailable to Atlantic City because of the presence of the Casino Reinvestment Development Authority, a state agency funded by a 1.25 percent "reinvestment" credit on gross gaming revenues.

And that fund worked wonders in Atlantic City. The CRDA is responsible for much of the affordable housing in the city. Through the "Gormley tax break"-named for the former state senator who used the lure of million of dollars in tax rebates to encourage casino development-the CRDA credit allowed Atlantic City casinos to add thousands of hotel rooms and entertainment complexes that would never have been built otherwise.

But times have changed. The CRDA is almost a dinosaur. All the money being pumped into the agency is now dedicated to existing projects or future projects. Until Revel opens and creates more revenue, the CRDA can be of no more assistance in the development of Atlantic City.

Some programs are available to Atlantic City already.

"Tax increment financing was used by Revel to build roadways and infrastructure leading up to its property," says Whelan. "This program takes a certain portion of the property tax and applies it to infrastructure needed for the project. It's broadly defined and creates 'new' money."

Langford says it might even be time to consider abolishing the CRDA.

"I don't understand the thinking of state legislators," Langford says. "Atlantic City is the goose that laid the golden egg. Tourism is the No. 2 industry in the state and Atlantic City is driving that bus. So what's good for Atlantic City is good for the state. The state would do well to protect the goose."

Corzine would not commit to adding any tax breaks or other incentives to what he perceives to be entities that help the development of Atlantic City.

"UEZ municipalities are designated through legislation," he explains. "The program currently has 32 zones in 37 municipalities across the state.  While Atlantic City is not a designated UEZ, the city benefits from a variety of other state resources from such agencies as the New Jersey Economic Development Authority, the Casino Reinvestment Development Authority and South Jersey Transportation Authority."

One positive step made by the state is the recent stimulus package passed by the New Jersey legislature. Unlike the national bill passed by Congress that specifically prevents the use of those funds by casinos, the New Jersey bill has no such restriction. Experts say the bill could be used by casino companies to do a variety of things that would create jobs and stimulate business.

5  More Marketing Dollars and Cooperation
Last month, the Casino Association of New Jersey suggested that the marketing budget of the Atlantic City Convention & Visitors Authority be boosted to $20 million, double its existing $10 million. The association claims there is a greater need these days to market Atlantic City as a destination, similar to the campaigns that are staged for Las Vegas, including the "What Happens Here, Stays Here" catch phrase. One difference? The Las Vegas Convention and Visitors Authority has $250 million to spend on marketing.

While Atlantic City can't hope to even come close to that level-it currently ranks about 35th in the nation-it should be able to boost its budget substantially, says Juliano.

"Everybody agrees on it," he says. "The issue now is how we are going to fund it. A company like ours, or Resorts in particular, cannot reach too far into their operating till to come up with extra money to market the city. But there's a lot of state money that we probably can take a look at. We definitely have a need for a citywide marketing campaign that markets the city itself."

Nita agrees that a program is needed, and references a recent "anti-Atlantic City" campaign launched by the two Connecticut tribal casinos.

"If those two casinos, which compete viciously for customers, can come together for the common good, we absolutely need to do that as well," he says. "Whether it's through the ACCVA or some funding via the CRDA, it is essential that we are able to redeploy funds to develop a marketing campaign to demonstrate the benefits of Atlantic City."

DeSanctis says he's prepared to start working with other casinos to focus on the positive aspects of Atlantic City. 

"We don't take advantage of the critical mass of amenities that we have in Atlantic City," he says. "From my perspective, Atlantic City has to start working together as opposed to against each other to attract more people in this market. The industry should be thinking of itself as a unit of properties as opposed to fighting each other. That's a directional change that should happen."

Boughner, who served on the Las Vegas Convention and Visitors Authority before coming to Atlantic City, suggests that marketing the destination works.

"Unfortunately, the revenue of the ACCVA doesn't seem to support this model," he says. "What we can do is create a greater level of cooperation and understanding so that the advertising dollars that are already being spent-and we would do our fair share-demonstrate certain attributes of the destination promoted more than they are today. That requires having real conversations with the people who have the biggest investments here. We're not looking for handouts; we're looking to join hands."

DeSanctis believes the roots of cooperation must run deeper, and include all members of the community.

"It's a huge point that nobody ever talks about it, like the big elephant in the room," he explains. "The industry has never accepted the community, and the community has never accepted the industry. We all have to figure out that nobody is going anywhere, so how do we make this work together? We can coexist, and we will coexist, but we have to open up a dialogue and get that moving.

"It would be huge, and frankly, there's fault on both sides. I'm guilty, everybody is guilty. Sometimes we don't take enough time with people. Sometimes we're so focused on the result of something we're trying to do that we don't recognize there is impact to others. I think we have to be more sensitive to that. And on the community side, they have to recognize the industry is a huge competitor for this town, and the reality is they need this industry to be successful if they want to lower their property taxes and if they want the services. We can't do it apart. We have to do it together."

Whelan stresses that there is nothing that will solve all the problems.

"Over the years, we've looked for the major silver bullet that would solve all the problems," he says. "There isn't one. There never was. There's not a person, a thing or an event that will make all the difference. There's a series of things that we need to do, but not one is more important than any other."

By Caitlin McGarry   Mon, Oct 05, 2009

Automated teller machines, also known as ATMs, were designed to electronically dispense cash to customers, creating a form of networked banking that reflects the wired state of casino floors in the 21st century.

The rapid advance of cash-access technology has swept through the gaming industry, altering the way money flows in today's resorts. The next generation of ATM devices has transformed a seemingly perfunctory service into a focal point for casino operators and patrons alike.

Banking and Beyond
When ATMs were first placed on casino floors, they were standard cash-dispensing kiosks. A few notable companies took the initiative and began developing new applications for ATM hardware.

Certegy, which recently sold its ATM portfolio of business to Global Cash Access, has been at the forefront of ATM technology for years, and continues to develop software for its products that can be deployed on ATMs. Ijaz Anwar, Certegy's senior vice president of strategy and business development, says Certegy has watched and participated in the evolution of ATMs from simplistic cash-access devices to sophisticated tools that enhance the casino floor.

"The evolution of ATMs and technology as a whole is an ongoing process," Anwar says. "ATMs are graduating more and more toward multi functioning kiosk solutions, which really means that they're being continually enhanced with multiple services, beyond just the traditional cash withdrawal that customers were used to.

"There are many other services that are being offered on ATMs,  or what we typically now call financial service kiosks that offer in addition to the traditional ATM transactions, anything from player redemption rewards, ticket redemption or ticket purchases, and other financial services-making them multi-functional devices."

Companies are now combining traditional ATM services with other applications that make the kiosks more than just cash dispensers. The advent of ticket-in/ticket-out technology perfectly complemented ATM services on casino floors, and cash-access providers like Certegy and U.S. Bank quickly bundled ticket redemption, bill-breaking and debit card transactions to transform their ATM kiosks into one-stop shops for cash access in casinos. Check cashing is another service that cash-access companies are bringing to the market to enhance the functionality of ATMs on gaming floors.

"A person can come up to the ticket redemption kiosk and either perform an ATM transaction or perform the other transactions they are accustomed to doing on an ATM, like a three-in-one, which is just a cash advance transaction using either a debit card or a credit card," says Paul Nielsen, vice president and managing director of gaming services for U.S. Bank.

"In addition, they can actually do a check transaction. We have a technology partner who we work with for check guarantee, and that transaction is fulfilled right there at the ATM and cash dispensed. It comes out of their checking account, but it comes out as a check, not as an ATM withdrawal, so it's actually not settled with their bank online immediately. Instead, it's settled two days later via the check pathway."

Cash-access providers have long provided three-in-one technology, which combines standard ATM services with point-of-sale debit or credit card cash advance transactions for casino patrons who may have exceeded their daily cash withdrawal limit.

"While most people's ATM card limits may be $500, the banks consider Friday night to Monday morning one day, so Saturday and Sunday are all considered one day," says Scott Betts, president, director and CEO of Global Cash Access. "If you think about our industry, where's the peak usage within a casino? It's certainly across the weekends. You'll find very high percentages of ATM transactions get denied at the point of sale inside a casino for exceeding the limit. That's where that technology has always been valuable, and still remains valuable today."

Global Cash Access' CasinoCashPlus 3-in-1 ATM product is a patented model that immediately rolls to a point-of-sale debit card transaction or credit card cash advance if the casino guest has exceeded his or her daily cash withdrawal limit.

"Instead of just rolling back to the home screen, we actually ask the patron, 'Do you want to do another transaction type or point-of-sale debit transaction?' If you say yes, immediately you roll into that transaction and go for authorization, and we'll dispense the cash if the transaction is authorized through their bank," Betts says. "It's a very intuitive, very easy process that steps a player through that process."

Consulting Casinos
As ATM technology has moved beyond cash withdrawal and transitioned into more advanced, multi-functional purposes, cash-access companies are constantly seeking input from gaming operators as to what services or applications they would like to see on ATMs in their properties. Cash-access providers are now able to tailor ATM devices to individual properties, ensuring that each casino is able to personalize the gaming experience for its guests.

"We don't want our products to be one-size-fits-all for every casino," Betts says. "It's really about what they want to do and how they want to operate our devices. Obviously, the cash transaction is something that we handle, and it's done according to all the rules and regulations for cash access, but in terms of the machines and how they operate; what messages come on the machines; how they want to operate those; whether or not they want a machine to just do cash access or whether they want to be able to have a person also check their points... We want to get into the position where it's really the equivalent of server-based gaming for us, where the devices themselves can be driven any way a property wants, based on the fact that we now have connection between their system and our system."

However, U.S. Bank's Nielsen says that customizing ATMs can sometimes go too far.

"We have on certain occasions asked the operators, 'Is there something in particular that you want?' and some operators have come back and said, 'We really like this idea of putting some kind of novel transaction right on the ATM,'" Nielsen says. "Frankly, what we've learned from the large consensus is that an ATM transaction should be fast. People should be able to walk up to a device, quickly insert a card and walk away with their cash with as little interruption as possible. Putting novel types of transactions on ATMs interferes with that primary goal."

The convenience and speed of ATM kiosks is integral to casino operators, who value the fact that cash-access devices, bundled with additional applications, help to streamline the casino floor.

"What we're responding to is the casino operators' desire to reduce expense on the one hand, and on the other hand we're trying to create a convenient location for patrons," Nielsen says. "If they want to go to the cage and do a check transaction, they still can. But if it's handier to run over to the ATM or the TITO device and do a check transaction there, they can do it there instead. This helps the casino improve on the satisfaction and the consumer experience in the casino significantly."

Marketing Moves
As ATM applications become more diverse, cash-access providers are pushing toward the newest technological frontier: marketing. While there are strict regulatory guidelines placed on ATMs as banking devices, ATM software can allow casinos to connect to patrons who use their player's club cards at a kiosk. There are no restrictions on marketing to players on cash-access devices, because those players allow the casinos to track them by signing up for the club card.

"When players sign up for playe'rs club cards, they basically say, 'Yes, it's OK for the casino to basically follow me around,' if you will, and that's basically what a player's card does," Betts says. "It allows the casino to follow their play across the casino. For that, you're going to get points and you'll be able get different offers. Do you want to do that or don't you?

"The consumer always has the affirmative ability to opt into those programs, because it's in their best interest to earn more points and have access to special offers. We view that the same way. We're not doing anything the casino's not doing today. We're just saying, 'You can now use our devices to access that.'"

Some players may be concerned about being marketed to on an ATM screen, but Certegy's Anwar says the cash-access provider does not retain the information processed at the ATM, and that a patron's personal financial information is not transmitted to the casino.

"From our perspective, the way that Certegy's transactions work, is we don't have access that data directly, and when Certegy processes a financial transaction, we're not giving any customer sensitive data to the casino," Anwar says. "We provide the application and the transaction processing."

The messages that casinos can choose to convey to player's club card-holders at ATM kiosks include offers for slot play, deals on buffets, comped hotel rooms and other strategies designed to accentuate the player's relationship with the casino.

"There are a lot of things we can start to do that really customize the experience and brand the player's experience," Betts says. "ATMs and redemption devices aren't the same at every single property. Your experience in front of an ATM or redemption device at Bellagio is going to be different from that at Wynn. That's really what will help our customers reduce costs, because we can start to take cash off the floor, but also increase their ability to manage their player tracking, and to bonus and market to people at a very captive point, when they're standing in front of a machine deciding how much money to take out.

"That decision, whether conscious or not, is, 'How long am I going to play? What am I going to play? What am I willing to do here tonight?' That is, from a marketer's standpoint, one of the moments of truth. That's when you really want to talk to a person."

By GGB Staff   Wed, Oct 07, 2009

There is no longer a for-sale sign in front of the MGM Grand Detroit Casino. A spokesman for MGM Mirage confirmed a report last month by the Detroit News which had written that no one had bid on the casino. At the same time, the recession is seen as slowly receding, so cash flow problems are less severe for the casino, which is one of three in the Motor City. MGM has been trying to sell both its Detroit casino and the Beau Rivage casino in Mississippi. • Beneficial Holdings, Inc., a casino investment and management holding company, has made an offer to acquire between 80 percent and 100 percent of the stock of Thunderbird Resorts, Inc. The offer, delivered to the Thunderbird board, would include $42 million in cash and 2 million shares in Beneficial Holdings. The cash portion is more than double the current trading price of Thunderbird, which operates casinos in Panama, Guatemala, Nicaragua, Costa Rica, Philippines, Peru and Poland. • The Sands Casino Resort Bethlehem in Pennsylvania has filed a petition with the state Gaming Control Board to add slot machines to the 3,000 games with which the casino opened in May. Under the law, Sands may add up to 2,000 machines, although the number it is adding is reportedly not that high. A portion of the slot floor that is currently blocked off will be opened up to allow for the expansion, which is expected to be complete by the end of November. • For the first time in 10 years that the city has had casinos, Detroit, Michigan's three casinos, the MGM Grand Detroit, Greektown and MotorCity, may see drops in revenue. Their combined revenues through August show a drop of 2.5 percent, so only a dramatic change of fortunes in the last quarter would change the trend. Experts say the leveling off of revenue is not surprising. Many are surprised it didn't happen sooner, given the region's economic decline. Caesars Windsor, which although in Windsor, Canada, is considered by many to be part of the Detroit market, is also part of the downturn. Its revenues fell behind those of the three Detroit operations, despite an expansion that added a 5,000-seat theater and a new hotel tower. • Residents of West Virginia's Jefferson County are expecting to vote a second time on December 5 on whether or not to add table games to Charles Town Races & Slots. However, county officials say the racino, which told the Jefferson County Commission in August of the plans for a second referendum (the first was voted down), have yet to file a formal request that the election be scheduled. Track officials, though, say they are still planning the vote, and have launched a website dedicated to promoting table games. • Governor John Lynch of New Hampshire has appointed a special commission to determine what effect various forms of gambling would have on the state's "quality of life." The Gaming Study Commission, made up of lawmakers from both chambers and both parties as well as former politicians and business owners, is studying the effects of legalized gambling around the country. Lynch has said he will not endorse legislation to authorize any form of casino gambling unless he is convinced it will not harm the state's quality of life. • The Pittsburgh Sports and Exhibition Authority is pressing the new Rivers Casino to make the first $7.5 million payment in a pre-arranged plan to help fund construction of a new hockey arena for the NHL's Pittsburgh Penguins. The annual payment is part of a 30-year plan to fund the arena that was a condition of licensing agreed to by former owner Don Barden. Rivers wants assurances that the payment will be lowered if taxes are raised or if another casino is approved for Pittsburgh. The sports authority wants the first payment now, and is threatening to ask the legislature to withhold approval for table games if they are legalized, until the casino starts payments. • The Caribbean Casino and Gaming Corporation, owner of the soon-to-open Sosua Bay Grand Casino in the Dominican Republic, recently announced that it has paid down most of the debt incurred during the construction of the resort and plans to be debt-free by the casino's opening October 24. • MGM Mirage recently announced that it plans to extend the early participation date for shareholders taking part in the exchange of existing notes for $500 million in new senior notes. The date was pushed from September 10 to September 24. • Let's Make A Deal, a popular CBS television game show, is being redone, with host Wayne Brady launching the show's revival at the Tropicana Las Vegas. The show debuts October 5 in the Tropicana's pavilion, which used to house the "Titanic" and "Bodies" exhibits. • Rotate Black, Inc. has entered into an agreement to acquire substantially all of the assets of Sage Gaming & Entertainment of Las Vegas, for $5 million in stock priced at $1 per share. Under the purchase agreement, Rotate Black also will replace Sage as the casino operator in two properties currently being contracted for by Sage. Shares of Rotate Black are to be released upon the successful completion of each of the casino management agreements to Rotate Black. Current combined revenue for the two operating properties is $20 million. • Casino Gaming, LLC and the Orleans in Las Vegas have introduced a new roulette betting option called "Colors." The system gives players the option to bet that either red or black will hit on three consecutive spins of the wheel. If winning on the Colors option, the player is paid 8 to 1. The wager has a house edge of 4.34 percent, compared to the overall 5.26 percent house edge for all other roulette bets-making the new wager the most player-friendly on the board.

By GGB Staff   Tue, Oct 06, 2009

"You're slamming the door and locking yourself in for 20 years."
-Dan Adkins, president of Mardi Gras Racing in South Florida, objecting to the proposed Seminole compact. The deal would give the tribe the exclusive right to offer certain games over two decades

"I am eagerly awaiting the president's appointment of my replacement. I sure hope I am long gone by the time these regulations ever become either proposed regulations or final regulations--and we are a long way from that."
-NIGC Chairman Phil Hogen, responding to requests by NIGA that Hogen be replaced immediately by U.S.
President Barack Obama

"I make people feel good and special. That is what I do."
-Casino kingpin Steve Wynn, who is bidding on the Aqueduct racino project; critics say Wynn's flashy style
won't play in working-class Queens, NYC

"He's the slot machine governor and that's how he'll be remembered. And until he gets slot machines, I don't think he's willing to stop at anything to take control of the General Assembly."
-Kentucky Senate President David Williams, complaining that Governor Steve Beshear's push for slots at
racetracks is "poisoning the political atmosphere" in the state legislature

"Problem gambling is very much like otheraddictions. The distinction is that there is no substance to ingest. With problem gambling you have the same behaviors, you have the same consequences, you have the same urges, you have the same withdrawal symptoms. The only difference is that I don't have to ingest a substance to have all those things happen in my brain. I simply have to engage in the habit of gambling."
-Carol O'Hare, executive director of the Nevada Council on Problem Gambling, in the Las Vegas Sun on the similarities between problem gambling and substance abuse

"Obviously, a big project like that right next door will have a short-term negative impact, but in the
long term, it will really help grow the city and help bring in a higher-end customer to the Taj."
-Mark Juliano, CEO of Trump Entertainment Resorts, on the as-yet unfinished Revel Entertainment project
on Atlantic City's Boardwalk

By GGB Staff   Tue, Oct 06, 2009

It's being characterized as a deal that was already finalized, but last month Galaxy Entertainment purchased a piece of land it needs to complete its Galaxy World hotel casino from the Macau government.

The company paid US$366 million for the land, which covers almost 450,000 square meters. Galaxy is building a mega-resort on the land, which reportedly will cost in excess of $2 billion. When the economy slumped, Galaxy virtually halted construction on the project, but that is slated to change. The company will invest at least $500 million to finish the exterior of the building.

"We will finish the external construction of the resort by the end of 2009, leaving only the interior decoration remaining to be done," said Galaxy Deputy Chairman Francis Lui. "The company will then decide whether to speed up construction on its 2,200-room resort project, after reviewing the sustainability of the economic recovery by the end of 2009."

Lui says the company hopes to open the resort sometime in 2010.

By GGB Staff   Tue, Oct 06, 2009

Already a legend in the gaming industry, Alex Yemenidjian was the operational genius behind the investment genius of MGM Grand owner Kirk Kerkorian in the 1980s and '90s. When he left the company in 2005, he said he planned to emerge shortly as the owner of a casino company. Well, it took four years, but Yemenidjian is back as the owner of the Tropicana in Las Vegas, in partnership with the Canadian private equity firm Onex Corporation. In an interview with Global Gaming Business in September, Yemenidjian explains how he returned to the gaming industry, why he found the Tropicana so attractive, and some of his plans for the historic casino.

Global Gaming Business: When you left MGM Mirage in 2005, one of your goals was to pursue new gaming projects. Why did it take so long?
Yemenidjian: It was a seller's market. From 2005 until 2008, it was so easy to borrow a lot of money at a very low cost that buyers were bidding up the prices of companies to unreasonable levels. The intrinsic value of a company does not go up by 35 percent just because you can put a lot of leverage into it at low interest rates. Throughout this period, we remained very disciplined in our valuations, and as a result, we were outbid in every transaction, and by very large margins.

We couldn't understand what these buyers knew that we did not. I think that we will be rewarded for our patience and discipline.

What was so attractive to you in the Tropicana purchase?
Clearly, location and price were the two moving parts in this transaction. And in addition to a superb location, the 34-acre Tropicana property is a perfect rectangle that has streets on three of the four sides. It's a developer's dream.

Was there any hesitation with the purchase because of the mess left by Bill Yung, both from the regulatory side and the financial side?
The regulatory issues did not impact the Las Vegas property because they all related to the Atlantic City property. Fortunately, the Las Vegas property was owned by a different subsidiary that had different creditors. But the financial impact from years of operational and physical neglect is clearly in evidence.

At one point, the location of the Tropicana was probably the best in Vegas. Now that the epicenter of the Strip has moved farther north, are you still bullish about the location?
The center of gravity on the Las Vegas Strip has been shifting for decades and will shift again, in our opinion, with the opening of the CityCenter project. We are excited about that.

Tell us about the Onex Company. Is there a longer-term plan here? Maybe buying other casino properties?
My partners at Onex and I are interested in building a diversified gaming company. Since December 2007, we have looked at many acquisition opportunities in Las Vegas, elsewhere in the United States and internationally, and we will continue to do so. The Tropicana acquisition is the foundation of the gaming platform that we would like to build. If the Tropicana were the beginning and end of the road, we would not be here.

With the purchase of the Atlantic City Tropicana by Carl Icahn and his group, are you looking to reunite the company under one banner?
There have been no discussions along those lines.

What is your impression of the Las Vegas market today? How will it change with the opening of CityCenter?
From 2004 to 2007, the U.S. economy had a negative savings rate. People were spending money they didn't have and were borrowing to spend beyond their means. Las Vegas clearly benefited from this excess in consumer behavior.

At the same time, ambitious new projects were being announced whose success depended upon the continuing growth in visitation and consumer spending.

Now, of course, there is a supply/demand imbalance even before major new projects open in the next 12 months. For the first time in my memory, it is now a zero-sum game in Las Vegas. We are rooting for CityCenter to be a big success and to create more demand than it consumes.

There are hundreds of employees at the Tropicana who have endured the lean years and now hope the be a part of the rebirth of the property. Can you tell us how you are considering them when rebuilding the Tropicana?
We inherited many team members at the Tropicana who are stars, and they are critical to the operational and financial transformation of this property. So we are building a new team-member lounge and dining room, and we are refurbishing the back-of-the-house facilities before we do anything else. Then we are instituting a new service-excellence training program.

They are clearly the most important part of this operation, and we want them to know that we understand we can't do this without them.

You've brought a new group of executives into the property. What do they each bring to the table that will help the Tropicana revival?
Each one of our 11 vice presidents is the CEO of his or her own strategic business unit. And they each bring with them the key attributes that I expect from our leaders: loyalty, sincerity, enthusiasm, pride, creativity, common sense, a great work ethic, and a commitment to excellence. I wouldn't trade my executive team for any other team in our industry.

Tell us what you learned from Kirk Kerkorian that you will put to use at the Tropicana.
We'd be here all day if I listed everything I learned from Mr. Kerkorian. There is never a day that goes by that I don't use something that I learned from him. But I think what I learned from him that I applied immediately was something he told me early on: "Put your property close to the best-run property in town." And that's what I've done here at the Tropicana.

By GGB Staff   Tue, Oct 06, 2009

The San Pasqual Casino Development Group, owner and operator of the Valley View Casino in Valley Center, California, recently announced that former general manager Bruce Howard has returned from brief stints in Las Vegas and Vicksburg, Mississippi, to again serve as general manager of the California casino.

Howard served as general manager of the Valley View from 2003 to 2007, during which time the property opened a $114 million renovation and expansion. He left the Valley View Casino in 2007 to become the general manager of M Resort in Las Vegas, then moved on to the Ameristar Casino Hotel Vicksburg in Mississippi, where he was senior vice president and general manager.

By GGB Staff   Tue, Oct 06, 2009

Colony Resorts LVH Acquisitions LLC, owner of the Las Vegas Hilton, has hired David Monahan, an official of parent company Colony Capital LLC, to be the COO and eventual CEO and general manager of the company.

Monahan has been with Colony Capital since 1995, overseeing the company's array of hotels as senior vice president. Colony Capital is an investor in Colony Resorts LVH.

The company has yet to disclose the future of former CEO and general manager of Colony Resorts LVH, Rodolfo Prieto.

By GGB Staff   Tue, Oct 06, 2009

Deutsche Bank, owner of the under-construction Cosmopolitan resort on the Las Vegas Strip, has hired Jeff Burge, the vice president of finance at the Palazzo and Venetian casinos, to be the new property's chief financial officer, a source told the Las Vegas Review-Journal.

Burge is the second casino executive to be carried away from a rival by the Cosmopolitan. Burge's new boss, CEO John Unwin, was formerly the general manager of Caesars Palace before resigning in July to join the Cosmopolitan. Unwin will take over his new position in October, while Burge has already begun work at the resort.

Deutsche Bank is still seeking to find an operator for the Cosmopolitan, as the bank is not in the business of running casinos, but Burge and Unwin will continue to oversee operations at the resort even if new management is found.

By GGB Staff   Tue, Oct 06, 2009

Cannery Casino Resorts has selected new general managers for two of its Las Vegas resorts, Rampart Casino and the Eastside Cannery Casino & Hotel.

Company veteran Patrick Hughes was promoted to the position of general manager at Rampart Casino, where he served as senior director of table games prior to rising in rank. Hughes, an Irish casino dealer who has worked for resorts around the world, moved to Las Vegas in 1996, where worked for Boulder Station and New York-New York before joining the team at Rampart Casino.

"Patrick Hughes brings a wealth of knowledge and experience in the casino gaming industry and has proven himself as a valuable asset and leader to the Cannery Casino Resorts team," said Cannery COO Xavier Walsh. "We are confident that Hughes will continue to build upon Rampart's reputation as Summerlin's premier gaming property."

Gaming industry veteran Marty Gross has been appointed to the position of vice president and general manager at the Eastside Cannery property. Gross comes to the Eastside Cannery from tribal casinos in California and Arizona, but prior to venturing outside of Las Vegas, Gross worked for M Resort, Station Casinos, the Four Queens and MGM Grand.

"We are pleased to have Gross as a part of our CCR team," Walsh said. "We are confident that his solid management skills and expertise in the gaming industry will make him a great asset to our company."

By GGB Staff   Tue, Oct 06, 2009

Tropicana Las Vegas Chairman and CEO Alex Yemenidjian announced his selections for the new executive team at the Tropicana.

Attorney Joanne Beckett will be the company's new vice president and general counsel; financial whiz Jerry Fox will be the vice president of finance and CFO; hospitality insider Arik Knowles will be the vice president of hotel operations.

Casino executive Don Wren will be the vice president of casino operations; dining expert Jim Laughlin will be the vice president of food and beverage; experienced salesman Todd Gagnon will be the vice president of sales; creative guru Trish Gilbert will be the vice president of marketing.

Gaming veteran Melissa Steinberg will be the vice president of player development; Grammy award-winner Nancy Gregory will be the vice president of entertainment; industry insider Fred Harmon will be the vice president of human resources; and technology titan Richard Faircloth will be the vice president of information technology.

The new team will usher in a new era at the Tropicana, which is currently undergoing a complete physical refurbishing after emerging from bankruptcy earlier this year.

"A critical aspect of creating the new Tropicana Las Vegas is attracting extraordinarily talented people," said Yemenidjian. "I feel very fortunate to have such a high-performance team in place, as I firmly believe that intellectual capital is the raw material from which success is made."

By GGB Staff   Tue, Oct 06, 2009

The New South Wales Casino, Liquor and Gaming Control Authority last month authorized the Gaming Standards Association's Game-To System, or G2S, protocol for use in the Australian state's lucrative gaming club market.

The decision was made following the successful Gaming Communication Technology Workshop in April, in Sydney, co-hosted by GSA and the Gaming Technologies Association. At the workshop event, gaming authorities reviewed recent changes in technology and how Australasian jurisdictions might be affected by those changes and by the application of GSA protocols.

"Next-generation technology products have the potential to enhance the integrity of gaming and responsible practices," said Gaming Control Authority Manager Gaming Technology Luke Freeman. "In addition to GSA, I would like to acknowledge the contribution that the Australian Gaming Technologies Association made to the G2S development effort."

By GGB Staff   Tue, Oct 06, 2009

Sports betting may have fizzled in Delaware, but in Nevada the time has come to place your bets. Las Vegas sports books have begun offering Cantor Gaming's in-play betting on NFL and NCAA games this month, just in time for football season.

In-play or in-running bets allow bettors to place bets during the game, which Cantor Gaming President and CEO Lee Amaitis said makes the action more exciting.

"In-running is particularly well-suited for football because of the popularity of the game and the huge number of football fans interested in sports betting," Amaitis said. "With in-running, customers can place bets during the game, so fans can have a stake in the action all the way through the event."

Cantor began offering in-running bets on NFL and NCAA games on September 10 at the Venetian, Palazzo and M Resort.

By GGB Staff   Tue, Oct 06, 2009

Gaming cabinet suppliers Cole Industries, Inc. and Kepro International Company, Ltd. have teamed up to form Cole Kepro International LLC, effectively increasing the size and scope of both companies' operations.

Las Vegas-based Cole Industries has developed a strategic partnership with Kepro International, which has 10 facilities in Taiwan and mainland China, over the last several years, and both companies are seeking to capitalize on their close relationship and individual successes in their new joint venture.

Cole founder and Chief Executive Officer Joseph Cole first began working with Kepro as a representative for the company before launching his own gaming cabinet supply business in 1993. The two companies have continued to work together over the years, with Kepro manufacturing many of the components that Cole uses in its gaming cabinets.

"With the change in the climate of the competition coming from offshore from different manufacturers trying to come into the marketplace, what we decided to do is join forces," Cole said. "Basically, we've worked out an arrangement where we're going to be working together, so we'll be able to bring the product in at a much more cost-effective way, and in a more complete way.

"We can work together and move that work where it's done most efficiently, and service the customer. It allows us the continuity of designs; it allows the protection of the patents we have in the United States and other areas. It really makes a lot of sense that we'll be able to then service our present customers and customers that have come to us that want us to build larger quantities."

One of the first orders of business for the new company is the construction of a manufacturing facility near the East Coast in order to better service Cole Kepro's clients in North and South America. The new facility, along with the 10 facilities in Asia, will enable Cole Kepro to build cabinets and ship them more quickly and more cost-effectively.

Cole President and General Counsel Glenn Wichinsky said the partnership will also change customers' perceptions of both Cole and Kepro, who will now have a truly global presence.

"We will be utilizing both companies' synergies, bringing those synergies together for both companies from the standpoint that they need more of an American presence and we want the international presence, which makes us more of a global supplier," said Cole Chief Operating Officer Stan Banks. "Collectively, we're able to market the companies and be more cost-effective to everybody long-term."

By GGB Staff   Tue, Oct 06, 2009

Slot manufacturer Atronic International announced that its eMillions Wide Area Progressive link was launched last week as "Mega Million Jackpot" at Casinos Austria. The jackpot went live simultaneously across all 12 casinos of the Casinos Austria Group, connecting 140 video slots in the "e²" series to the highest jackpot in Austria.

The first jackpot hit only five days after the link went live at Casino Linz, where a local player won €1.1 million.

The jackpot link was launched nationwide on September 9 with a celebration at Grand Casino Baden, when Casinos Austria CEO Karl Stoss and Austrian swimmer Fabienne Nadarajah cut the ribbon during a festive ceremony and officially started game play.

Stoss thanked the Atronic team for the cooperation between the project teams of Casinos Austria and Atronic in developing the link. He also said the use of local vendors in completing the work on the network was good for the Austrian economy.

"It is one of our core principles to cooperate with local suppliers wherever possible in order to strengthen the Austrian economy and its competitiveness," Stoss said. "We are therefore very pleased about this excellent cooperation with Atronic, an international gaming company, with its R&D center and production facility located in Styria."

Prior to the launch, the project teams of Casinos Austria and Atronic worked closely together to customize the eMillions WAP to the specific needs and requirements of Casinos Austria. For example, the top winning combination triggering the Mega Million Jackpot consists of five Casinos Austria logos. Furthermore, the launch event was supported by Atronic marketing, which worked closely with the Casinos Austria marketing team beforehand to prepare all marketing material and communication for the launch.

By GGB Staff   Tue, Oct 06, 2009

Slot and system supplier Bally Technologies announced that Tropicana Las Vegas is investing in the company's CMS/400 player tracking and marketing system, along with Bally's latest promotional tools.

In addition, Tropicana has purchased Bally's Business Intelligence Solutions (BI) with data analytics, visualization, and slot-floor mapping to better serve customers through improved understanding of game and table performance, players, and the important interaction between players and games.

"Integrating cutting-edge marketing tools and player tracking technology is a key component in our overall revitalization program," said Tropicana Las Vegas Vice President of Marketing Trish Gilbert. "By utilizing Bally's Business Intelligence Solutions, we will be better equipped to make the most up-to-date CRM decisions, maximize our slot offerings, and deliver targeted slot programs to our customers."

Bally Technologies expects to go live with these solutions at the Tropicana by the end of September.

In addition, Bally has expanded its systems partnership with Southern California's Morongo Casino Resort Spa to provide Bally Business Intelligence Solutions as well as a number of marketing products, including 2,000 iVIEW player-interface displays.

The contract comes on the heels of the casino's investment in planned implementation of a Cisco Systems high-speed Ethernet casino floor. Morongo's new networked floor will ensure communications operability across multiple networks and systems, and enable the casino to fully capitalize on all of the benefits of the newly purchased Bally solutions.

Bally's iVIEW displays on each slot machine will permit Morongo to deliver marketing messages and secondary bonus games directly to the player. Additionally, Morongo selected Bally Power Promotions and Power Winners, which together will allow the casino to offer floor-wide random progressive jackpots and chain-reaction rewards, as well as cashless credits to the slot machine.

By Caitlin McGarry   Tue, Oct 06, 2009

Two prominent consulting firms are sharing their best practices to help clients drive significant short-term revenues and "future- proof" their long-term competitive advantages. 

The Innovation Group of Companies, a globally recognized consulting, management, finance, development and marketing firm, recently announced a strategic partnership with internet marketing company gCommerce Solutions. The two entities have committed to sharing their resources and practices to penetrate strategic target segments, increase online-driven revenues and improve overall marketing ROI for clients.

"Internet-based marketing is a critical component for any destination property these days, but a truly effective and comprehensive plan is much more than a strong website and well-placed internet ads," says Mark van Hartesvelt, a 30-year veteran of hospitality, casino and internet marketing and the managing partner of gCommerce. "Beyond bookings, an effective online presence will incorporate such tools as social and search marketing, CRM and other media services to help to build the brand and improve overall revenues."

Among the collective services provided by the Innovation/gCommerce association are market analysis; consumer research; marketing and business plan development; revenue forecasting; competitive analysis; channel distribution launch plans; search marketing; social marketing; interactive strategy; online media services; website development; electronic merchandising and distribution; database marketing; CRM; and other state-of-the-art eMarketing and ePR solutions.

"Our clients in the gaming industry are only beginning to understand the extended opportunities and inherent benefits of a comprehensive internet-based marketing program," says Steve Szapor, president of the Innovation Group. "Through our association with the gCommerce team, we are simplifying access to the complex applications our clients need to seamlessly blend their long-term strategic initiatives with immediate, frequent, cost-effective and targeted messaging to their guests."

Online marketing programs are gaining interest from gaming executives. While the performance of the gaming industry as a whole is notably down this year, some properties and brands that embraced a comprehensive online marketing program have been able to sidestep the negative trends that have impacted competitors.

gCommerce and the Innovation Group apply a proprietary "surround sound" program that helps management teams listen to the voice of the customer from multiple channels. These include such tools as focus groups, guest comment cards and the monitoring of online chatter-all collected, analyzed and responded to with pinpoint target messaging back to guests.

gCommerce executives say this approach has been particularly beneficial for the company's hospitality and gaming clients, who have recently witnessed an overall average 56 percent increase in online revenues this year compared to 2008, including in such impacted markets as Phoenix (one of the country's worst for overall tourism declines), where the company's clientele actually witnessed a 21 percent increase in room nights through August 2009 versus 2008. Specific to their gaming clients, gCommerce tracked a 62 percent increase in room nights in 2009 versus the same periods of 2008.

With results like these supporting their efforts, the fusion of best-practice hotel and casino management with state-of-the-art online marketing techniques is proving to be a wise strategic move for the Innovation and gCommerce team. The service is proving to be popular with Native American clients in highly competitive gaming jurisdictions (Southern California, Arizona, etc.).

"gCommerce has long been recognized as one of the most respected hospitality operators in the industry, and we have been particularly impressed with their ability to improve results for their clients in the current environment," says Joe Witterschein, vice president of marketing services for the Innovation Group. "We were extremely eager to support and broaden the strategic and gaming-specific research aspects that are so critical to their work, and to introduce their proven techniques as a way for our clients to implement the financial, marketing and operational guidance we provide."

gCommerce's van Hartesvelt said he is equally appreciative of the opportunity to work alongside the Innovation staff.

"gCommerce's services incorporate multiple interactive marketing disciplines, with each service designed to drive revenue and work in symphony with the cohesive global marketing strategies and consumer preferences data that the Innovation Group generates," says van Hartesvelt. "Our efforts are proving complementary because of our firms' shared appreciation for the larger operational picture."

For more information, contact Steve Szapor at 303-798-7711 or szapor@theinnovationgroup.com, or contact Mark van Hartesvelt at 435-214-5119 or mark@gcommercesolutions.com.

By Frank Legato   Tue, Oct 06, 2009

Can you believe it? It seems that the "What Happens Here, Stays Here" slogan has led to some stuff that people would rather not see "stay here."

It says here that Planet Hollywood recently paid a big fine for allowing "topless and lewd activity" in its ultra-lounge and for depositing customers into the casino "in various states of consciousness."

I've been in those states.

Anyway, it seems there's a crackdown on alleged criminal behavior at the fancy ultra-lounges that appeared back when people had money. Binge drinking, nudity-apparently, slathering a buxom babe with paint does not constitute compliance with anti-nudity laws-and drunken fistfights have occurred at some of these lounges. There are allegedly drug crimes and prostitution going on at some of the places.

Nudity in Las Vegas. Imagine!

There's also willful, rampant overcharging at the ultra-lounges, but no one seems to think that's criminal. If it were up to me, anyone charging $400 for a bottle of booze would be drawn and quartered. But back to my point.

Yes, sometimes I even have a point.

We welcome the crackdown on debauchery at our Las Vegas gambling joints. Why, the nerve of some people, allowing drunken, hopped-up revelers to spill into the very casinos where our children are. How can the kiddies watch us drink and gamble if semi-nude drunks get in the way? The ultra-lounges stand to threaten all of the family-friendly activities we offer here in the capital of family entertainment.

No, wait. That's Disneyland. Vegas is still Sin City, right? We didn't go back to that lame "bring your family" stuff from the '90s, did we?

The answer, of course, is no. The ultra-lounges are meant to draw the young adults-the twenty-somethings who want to dance and drink and dance some more, and then drink some more, and rock and roll all night, and party ev-er-y day. The lounges are for those all-American youngsters who still think downing half a quart of bourbon and retching on your shoes equates to a "fun night out."

The rest of us-the forty-somethings, fifty-somethings and beyond-are playing in the casino, sitting at tables or at machines. And the thirty-somethings? They still think it's family time. Particularly at the suburban casinos, parents still bring their kids onto the slot floor, and parade them past us on their way to family events somewhere in the casino complex, while we sit at our slots or video poker machines.

Geez, they even had the circus at South Point the other day. I'm sitting at a video poker machine as little kids with funny hats and little balloons walk by, their little cherub faces plastered with some sort of sticky, sugar-based goo. No, they're not supposed to be on the casino floor, but they were certainly close enough to me to gaze in wonder.

"Look, Timmy. That's a degenerate gambler. See how red his eyes are? We don't ever, ever want to be like him, do we?"

I wonder if there are kids next to the ultra-lounges when all of that illegal fun begins to burst out into the casino.

"See, Billy? That's what happens when girls go out with not enough clothes on. They get handcuffed by the sheriff, and have to go to the county jail."

Oh, I know. It was probably five in the morning by the time all that wild stuff happened at the lounges. The worst parents could fear is that they'd run into some drunks on their way to the breakfast buffet.

But I believe the local authorities are going to keep up the pressure on the ultra-lounges to keep it comparatively clean, and the casinos will happily comply, because they make a ton of profit from these all-night dance-and-drink havens. Even though most of us can't afford them, I think the lounges are here to stay.

So the twenty-somethings in the lounges today will soon be the parents parading kids across the
casino floor. At least they'll know where the ultra-lounges are, so they can avoid them.

And some day, you youngsters in the ultra-lounges will be middle-aged like me. Then, I'll bring my grandchildren into the casino so they can stare at you while you play video poker.

"See, Timmy? That man's gambling. And when he was a little older than you, he used to dance all night, then throw up on his shoes."

By Frank Legato   Tue, Oct 06, 2009

Manufacturer: Bally Technologies
Platform: Alpha Elite S9E
Format: Five-reel, 30-line stepper
Denomination: .01
Max Bet: 600
Top Award: Progressive; $2,500 reset
Hit Frequency: Approximately 50%
Theoretical Hold: Various

Bally has responded to competition with its own version of the hybrid reel-spinning game with superimposed animation. "Transparent Reels" places a transparent LCD screen over mechanical spinning reels, enabling animation during bonus rounds and win celebrations after jackpots. The superimposed LCD video is touch-enabled, allowing players to actively interface with reel-spinning games.

The series is being launched with three debut games on the Alpha Elite S9E stepper platform: Dragon Dynasty, Sky Spirits and Twin Tigers. The games are all configured with five reels, 30 lines and a 600-credit max bet. The games also feature a two-level internal/external progressive.

In the base game, as the mechanical reels spin, the corresponding winning combinations dynamically animate across the LCD display in front of the reels. When the bonus game is triggered with specific symbols appearing on the middle reels, the player is asked to pick one of the symbols-Water Dragon or Fire Dragon, White Tiger or Red Tiger, etc. Each of these has seven reel symbols associated with it. The reels spin three times and each time a symbol corresponding to the player's selected symbol appears, the player is awarded a bonus equal to the total bet. If the selected symbol gets more total symbols after the three bonus spins, the player gets an added bonus of 40 times the bet.

At the conclusion of the bonus round, the winning Dragon, Sky Spirit or Tiger (depending on the specific game theme) animates across the reels to indicate the win. After the bonus round concludes, the game returns to its standard play, with the reels returning to the visual foreground.

By Frank Legato   Tue, Oct 06, 2009

Manufacturer: Cadillac Jack
Platform: Cadillac Jack Video Platform
Format: Five-reel, 50-line video slot
Denomination: .01, .02. .05, .10, .25
Max Bet: 50-250
Top Award: $5,000-$25,000 (base prize plus progressive)
Hit Frequency: Approximately 50%
Theoretical Hold: 5%-14%

This is one of the top games in Cadillac Jack's new series of 50-line video slots. It is a medium-volatility program set up in a four-by-five reel configuration, with graphics, reel symbols and sound centered around a firehouse theme.

This is the first game to employ the manufacturer's newly configured pay tables, and during the primary game, vertical stacked wild symbols add to the volatility. Fire alarm triggering symbols trigger a free spin round, with lots of entertainment features such as realistic fire dispatch calls and lively animation while the free spins play out. Jackpots are doubled during the free spins, and re-triggers can result in a possible maximum of 50 free spins.

All of the new games in the 50-line series feature play styles the company launched last year, "SpeedPLAY" and "PlusPLAY."

SpeedPLAY is an optional mode for the player that cuts out nearly all the animation of spinning reels to go directly to the result of each spin. The player simply touches the screen to cut to the chase for the result of the spin.

PlusPLAY is designed to reward players with random bonus events in exchange for extended play.

The game is available in both Class II and Class III versions, and with either fixed or progressive jackpots.

By Frank Legato   Tue, Oct 06, 2009

Manufacturer: WMS Gaming
Platform: Transmissive Reels
Format: Five-reel, 40-line stepper
Denomination: .01-5.00
Max Bet: 100
Top Award: 6,000, 12,000
Hit Frequency: 41.09%, 41.22%
Theoretical Hold: 2%-15%

Max Win is a new series from WMS Gaming that places mechanical reels in a four-by-five configuration and adds a random "bonus bank" feature using the manufacturer's Transmissive Reels technology.

A transparent LCD overlay on top of the reels is used for animation during the primary game, and for random bonus events. There are four primary games in the series, each with its own game-specific free-spin event. There are three random Max Win free-spin events common to all the base games.

The Max Win bonus features can occur after any winning primary game spin that results in a jackpot of at least double the player's total bet (other than spins triggering one of the game-specific events). All have special bonus symbols that give additional chances at big wins:

"Max Win Credits" awards between one and five times the player's bet for every mushroom reel symbol appearing on the screen. "Max Win Wilds" awards a random number of wilds that will be randomly placed in any position on the reels. "Max Win Multipliers" awards a random win multiplier ranging from 2X to 6X.

Primary games include "Golden Maoi," "Royal Unicorn," "Snow Leopard" and "Panda Riches." The first two feature eight free spins when scattered triggering symbols land; the latter two award 10, 15 or 25 free spins
when three, four or five scattered trigger symbols land, respectively.

By Frank Legato   Tue, Oct 06, 2009

Manufacturer: International Game Technology
Platform: AVP
Format: Five-reel, 30-line video slot
Denomination: Operator-selectable
Max Bet: 600
Top Award: 3,000 credits
Hit Frequency: Approximately 50%
Theoretical Hold: 5.1%-10.1%

IGT has placed the theme of the popular HBO TV series Sex and the City into its "Multi-Level Progressive" series, along with a lot of new interactive bonus events that set the game apart from others in the series.

For instance, this is the first game to feature IGT's new "sound chair," which surrounds the player with audio in an immersive type of experience. It is the first in the Multi-Level Progressive series to use the "MultiPLAY" game style, which places four individual sets of reels on the LCD screen. The player wagers on up to all four of the 30-line primary game screens, and the reels spin simultaneously. When a bonus event is triggered, that game fills the entire screen.

IGT is capitalizing on the brand recognition offered by the hit show with video clips from the series which play out during bonus features. There are five levels of progressive, each associated with a character from the show-Mr. Big is the top jackpot, followed by jackpots labeled Carrie, Samantha, Miranda and Charlotte. In the progressive bonus event, the player picks from one to three boxes that reveal credits or the progressive jackpot.

There are also four themed bonus games. Mr. Big talks players through the bonus steps and congratulates players on their wins. The 12-stop virtual wheel appears in the top box, and Mr. Big tells players to spin the wheel. When the wheel stops, the bonus game launches and plays out on the base game screen.

Players must cover the lines and make a 20-credit side bet to qualify for the bonus on each game-a 200-credit-per-spin bet to play all four. Players can wager up to three credits per line on all four games for a max bet of 600 credits. When all four games are in play, bonus play hits frequently-every 25 games on average.

By Frank Fahrenkopf   Tue, Oct 06, 2009

Every so often, a discussion of the legal age requirement for gambling in the United States resurfaces. Recently, the Ohio Lottery Commission approved rules that would allow 18-year-olds to gamble at the video lottery terminals that will be installed at the state's newly approved racetrack casinos.

Though there had been some public concern about the age requirement being too low, lottery officials did not believe it was an issue since 18-year-olds already are permitted to buy lottery tickets and bet at horse tracks in Ohio. Governor Ted Strickland later reversed the decision and set the minimum ag at 21, but the discussion
surrounding it is resurrecting questions about gambling behavior and gambling disorders among teenagers.

For those of us in the commercial casino sector, for which the age requirement to gamble is 21 nationwide, preventing underage gambling is a business imperative and one we all take very seriously. We put strict policies in place to assure underage individuals are not able to access our gaming facilities, and we educate our employees about identifying and removing underage individuals from our properties.

Yet, regardless of the fact that children and teens are not gambling in commercial casinos, research shows us that they are, in fact, gambling.

According to a recent national survey, nearly 70 percent of 14- to 19-year-olds in the U.S. gambled during the past year. These teens aren't placing bets in commercial casinos, but they are placing bets on poker, the lottery, video games, sports scores and a variety of other activities.

Research on youth gambling shows us that young people are more likely to have problems with gambling than adults. The prevalence rate of pathological gambling among U.S. adults is about 1 percent; among young people, studies have revealed the rate is slightly higher. What's more, studies show that adults with gambling problems started gambling at an early age.

Much of the research conducted on youth gambling during the past decade has been funded by the National Center for Responsible Gaming, the AGA's affiliated charity. Since it was founded in 1996, the NCRG has funded a variety of research projects on youth gambling-from those that examine gambling behavior in youth and college-age individuals to those that explore the risk factors that may make young people more likely to gamble or have problems gambling.

As the body of research on this topic has grown, the NCRG has worked to develop practical, real-world applications from the research findings to help raise awareness about gambling disorders and responsible gaming and prevent gambling-related harms.

In 2008, the NCRG released "Talking with Children About Gambling," a research-based guide for parents and others who mentor youth that outlines some of the ways young people gamble, provides tips on how to recognize warning signs of gambling disorders and details what adults can do to ensure that children avoid risky behaviors. The free guide is available for download at www.ncrg.org.

The NCRG's latest initiative focuses on college-age youth. Research shows that college students frequently engage in risky behaviors at higher rates than the general adult population. And, in spite of increases in college-based prevention measures during the past two decades, addiction-related problems continue to be a problem on U.S. campuses.

According to a Harvard Medical School study, only 22 percent of higher education institutions in the U.S. have a written policy on gambling, while nearly 100 percent have policies on alcohol use and abuse. With the release last month of its official recommendations for creating science-based policies and programs relating to gambling on university campuses, the NCRG-funded Task Force on College Gambling Policies is hoping to help these institutions fill this void.

In its report, the task force offers 10 customizable recommendations focusing on three primary areas: on-campus prohibitions and restrictions; recognition of the importance of recovery-based policies and how to facilitate them; and special events. The recommended policies and programs range from establishing a campus-wide committee to develop a comprehensive gambling policy, to making reasonable accommodations for students who may miss class as they focus on recovery, to strengthening the capacity of counseling services to identify and treat gambling disorders.

The task force's report represents more than a year of work by a group whose members represent a cross section of disciplines, from researchers and clinicians to administrators, student health and student life professionals, and athletic advisers. They also hail from a geographically diverse range of institutions, including the University of Alabama; Bridgewater State College; the University of Denver; George Fox University; Harvard University; Lehigh University; Mississippi State University; the University of Missouri, Columbia; the University of Nevada (Las Vegas and Reno); Oregon State University; and Villanova University.

These recommendations represent a significant advance in the practical application of research to help raise awareness of gambling disorders and prevent gambling-related harms. Research shows that when higher education institutions adopt and enforce clear policies, they can be effective in preventing students from getting into trouble.

Regardless of what the legal age requirement is for gambling, as colleges and universities across the U.S. begin to develop their own policies on gambling, we in the gaming industry have a vital role to play. We already have taken significant strides to promote responsible behavior and raise awareness about gambling-related harms among our patrons.

By working with local universities and supporting the adoption of campus policies that are grounded in sound research, we can help ensure that college-age youth who may be at risk for developing a gambling problem have access to the support and resources they need early on-before they ever set foot in one of our facilities.

By Roger Gros   Tue, Oct 06, 2009

Over the summer, in connection with my story in this issue about Atlantic City, I had two separate interviews that made me think about why people and institutions invest in the gaming business. It's something that we should all consider, because without that investment, gaming could become the next bowling, which was a huge sport in the 1950s but has become a truly secondary activity.

Bob Boughner, the CEO of the Borgata in Atlantic City, talked to me, in a wide-ranging discussion about the future of Atlantic City. We discussed what investors expect when they put their money into a casino property (not just in Atlantic City, but anywhere). Boughner is one of the smartest operators in the business. His vision was to expand the market for Atlantic City by building something that it didn't have before, which Borgata and later the Water Club became.

"No one wants to take their money and put it into an investment that is low or significantly lower than they would without having to take any risk," he said. "I have great respect for the people who put up the money because they are taking an enormous risk. That risk is mitigated by healthy market conditions and a competent and qualified management team."

Boughner was speaking specifically about Atlantic City, but his comments could certainly be applied to every gaming jurisdiction.

My second interview was with the new guy in town, Kevin DeSanctis, who is building the Revel casino on the Boardwalk. In June, he told me he was quite discouraged last winter about obtaining the remaining financing he needed to complete the hotel, which is still under construction. But as you can see by the story on page 6, there has been some movement in acquiring that last piece.

DeSanctis explained how the "risk" factor was an important element of his proposal, but explained how his company had "de-risked" the final stages of construction by controlling costs in the initial stages. He also said that the business model hasn't been altered that much, which was somewhat curious, given the state of the Atlantic City gaming economy.

Staying with the Atlantic City example for a moment, I could never understand why anyone would invest money in a Donald Trump-branded casino. The Trump casinos have now declared bankruptcy for the third time, with few if any of the investors recovering even their original investment. And Colony Capital may be forced to give up its two Boardwalk casinos because it simply paid too much for them.

And that brings us up to the present day. The future investors in the gaming industry aren't going to want to take the risks that have burned many investors in the past. Prior to the recession, the "build it and they will come" philosophy seemed to be pretty sound. Now, not so much.

I believe for the next decade we will be undergoing a re-evaluation of the model for the casino resort. We've probably seen our last billion-dollar property for some time. Maybe in total, properties in the future will cost more than $1 billion, but the initial stages probably won't cost more than a few hundred million dollars, and then those stages will have to be a proven success to justify expansion.
 

We also have to see if the buying patterns established by our customers prior to the recession will hold up. Many respected experts say that the wild and extravagant spending that characterized those roaring times will never return. If your regular customers never return to the frequency of visits that they had prior to the recession, what does that do to your business model?

Vegas business models are already smashed to smithereens. When CityCenter opens in December, it will further stress the market, and who knows what will happen? Even now, hotels that were built with the expectation that they'd get a $300 average per night at a 90 percent occupancy rate are getting less than half that with a similar decrease in occupancy. So what does that tell us about the future?

Investors are the hope for the future of the gaming industry.

But to attract those investors, we have to remove the uncertainties that currently dog the gaming industry. We need to operate efficiently and effectively, and make smart use of the existing facilities. We need to market intelligently and develop, once again, a base that will respond to the excitement and service that we provide on a daily basis. We need to show investors that the risk will be well worth the reward. 

By Maryellen Muir   Mon, Oct 05, 2009

What do we really know about our patrons? Player-card memberships tell us names and spending patterns, but what about a more complete picture of gaming-floor performance, player and game interaction, player behavior and trending, and player loyalty and value?

Customers' preferences influence slot-floor configurations, marketing efforts, employee schedules and a host of other operational factors, and if we could follow their actions and know all of their
likes and dislikes at the press of a button, we could tailor not only one guest's experience, but an entire floor's worth.

Now, we can.

New generations of business intelligence (BI) systems make possible a microscopic view of a property's guests within moments, portraying the data in succinct reports and colorful, easy-to-understand charts that present a heat-map representation of data and highlight important patterns.

Having an information advantage, especially during these economic times, is key to profitability. Business intelligence tools enable a gaming property to differentiate itself. Casinos that invest in this technology have the opportunity to gather pertinent information quickly to guide their business decisions. This edge can maintain and reinforce a property's leadership in its market and facilitate much-needed growth.

Having an edge in any economy is always desirable, but the strength of accurate data trumps all. Successful promotions, advertising, tournaments, and marketing outreach all rely on what we know about our guests. For Cliff Paige, director of slot operations for the South Point Casino in Las Vegas, advances in BI systems could not have come at a more opportune time.

"Business intelligence is integral to new and existing casinos, and there is no better time than right now to be able to chop this data down," Paige says. "I receive accurate, dependable data when I walk in each day. Before, we did not know enough about our customers or their spending patterns. This system gets us on our way to understanding everything."

Coupled with information from a customer's player's card, BI can identify locations that the person visited on property, from which city they arrived, when they played, and how many other patrons share these traits. A heat map of the casino floor, for example, can be run for any period of time to display high and low levels of activity and the number of guests in the casino on an hourly basis per day for a determined period.

The ultimate goal of these newer BI systems is to provide the quantitative and qualitative data that casinos desire. Greg Moore, senior finance manager at Viejas Casino near San Diego, uses BI to help slot managers identify hot machines and trends. He looks for which suppliers' machines are performing stronger than others, and how well guests are responding to game denominations.

"You can create custom reports that show the number of games played during a specific time segment, and drill down to what you need," Moore says. "Essentially, you have regular reports that do not need to be created from scratch each time. You can identify the rate of play on one machine, the number of handle pulls, and so forth. It can help identify a supply problem. If one brand of machine ranks the hottest among players, but a limited number are present on the floor, then an increase of those games will make a certain group of players very, very happy."

Casinos utilize key performance indicators designed to be in sync with and suit the way they view their data. BI not only accumulates, analyzes, stores and prepares data; it also offers easy-to-digest reports and the ability to create reports. End users can prepare color graphs or charts to illustrate up-to-date information, trends and patterns. Based on these summaries, casino personnel can execute changes or enhance current conditions to the property's benefit.

BI also contains a dashboard feature that displays color-coded data. The dashboard can produce data relating to the enterprise, giving management a heads-up on how each department is doing.

"Business intelligence systems can help you make smarter decisions in a quick manner," says Buddy Frank, vice president of slot operations for Pechanga Resort & Casino. "We use the Bally
system, which breaks down information by color and size, and produces specific figures-not ranges of numbers. And with the economy the way it is, making informed decisions quickly is imperative to survival. BI reduces pounds of paper into a decision point."

Many BI users regard survival during this economy as a key indicator of success, and attribute a portion of that good fortune to the finite details the system's reports, charts, and graphs provide. After the upgraded implementation at Viejas Casino, Greg Moore saw immediate results in operations.

Moore has also noticed other benefits. In one instance, the housekeeping manager used data on the number of slot handles pulled to assist with his employee schedules. The maintenance and IT departments scheduled floor changes during specific time slots identified by BI to minimize customer disruption.

The powerful, visual data provided by BI also improves presentations to senior management and helps ease otherwise-difficult approval processes. BI solutions provide the clarity of thought, breadth and depth of analysis, and simplicity of presentation that are key factors in timely and good decision-making.

Enhancements to business intelligence software will continue. Its powerful data will drive decisions that turn surviving properties into thriving stalwarts. And it will enable all levels of employees to create the experiences their patrons seek, because they will know more about their patrons than ever before.

By GGB Staff   Mon, Oct 05, 2009

A new era doesn't announce itself with a press conference, fireworks and a party.

Often, it isn't certain a new era has begun until it's been around a while.

Today, it seems, we are in a new era-the merger of Asian and American gaming enterprises and investment opportunities.

If we have to put a date on when this era began, we'll pick 2002, the year Stanley Ho lost his Macau casino monopoly.

Soon afterward, three American companies-Las Vegas Sands, Wynn and MGM Mirage-won the rights to build casinos in Macau. And one Hong Kong-listed company, Melco Crown, began trading shares in the United States on Nasdaq.

The pace of the trend for Americans and Asians to invest with each other has picked up this year, no doubt helped along by low stock prices and the freezing of the credit markets that has been slowly thawing in recent months.

Now, however, it is Asians putting money into American companies rather than the other way around. Consider these recent developments:
    

• Wynn and Las Vegas Sands intend to go public-on the Hong Kong Stock Exchange with minority stakes in their Macau operations.

• Lim Kok Thay, head of the family that controls the various Genting companies, is buying about half of Empire Resorts, putting his financial might behind Empire's efforts to build a casino with the St. Regis Mohawks in the Catskill Mountains north of New York City.

• After a long, slow buildup, Konami has arrived as a major North American slot machine company, and has even begun selling casino management systems, a business nearly 100 percent occupied by Bally, IGT and Aristocrat.

• Aruze, which already owns a big chunk of Wynn, has ambitions to become a significant American slot machine company.

Of course, the trend still runs the other way, with Scientific Games and IGT having investments in the Chinese lottery industry, and Melco Crown recently selling more shares in the U.S.

And if we throw Australia into the mix, there is even more interaction, from Aristocrat and Ainsworth slots in North America to American suppliers in Australasia.

Then there are partnerships and cross ownership of companies-Aristocrat and PokerTek, the JCM and TransAct alliance, as examples.

Of course, this is part of a broader globalization of gaming, as illustrated by the American financing of British internet companies, Lottomatica's purchase of Gtech, Scientific Games' British gaming machine business, and Intralot's fast advance in the U.S.

But what interests us is the Asian-American theme.

Two companies we find interesting are giant Genting and little Elixir Gaming Technologies.

Genting is a multibillion-dollar Malaysian conglomerate.

Its gaming business has grown from its giant Genting Highlands to ownership of the former Stanley Leisure in Britain and Europe to the Sentosa mega-resort opening in Singapore to the just-opened $700 million Resorts World in the Philippines.

Several Genting entities are publicly traded. The parent company, Genting BHD, and Genting Malaysia, are traded in Malaysia. Genting Singapore trades in Singapore. Star Cruises, the partner in Resorts World Manila, trades in Hong Kong.

Genting has global gaming ambitions, and its track record and resources suggest it can fulfill them.

Genting bought some MGM Mirage bonds early this year, sparking speculation about its intentions with MGM both in the U.S. and Macau.

The purchase of Empire Resorts is being done through Kien Huat Realty III Ltd., the privately held company of Lim Kok Thay's family.

For $55 million, he is buying what could be the base of an American casino group, and at the least is a relatively inexpensive entry into the U.S. if the Mohawk casino is approved.

Elixir is a different story. It is a small slot machine company that has lost money in markets like the Philippines, Vietnam and Cambodia, and has been driven down to penny stock status.

Yet it lists on the American Stock Exchange and its top executives have been making the rounds of investor conferences in the U.S.

One thing that makes EGT interesting is its pedigree.

It is part of Elixir International, which, in turn, is part of Melco, the Hong Kong-listed company headed by Lawrence Ho and chief partner with Crown Gaming in Melco Crown.

Whether that translates into EGT growing beyond Asian slot parlors and some RFID-embedded playing chips remains to be seen.

No doubt, as time goes on, there will be more Asian and American combinations and alliances, and more Asians investing in U.S. companies.

And as those enterprises prosper, many Asian investors will be able to say their profits were made in the USA.

By GGB Staff   Mon, Oct 05, 2009

For the first time in the nation's history, a bill that would create a gaming industry is being considered in the federal legislature of Brazil.

Bill 270/2003 was passed last month by the lower House Committee on Constitution, Justice and Citizenship, adopted by a vote of 40 to 7. This represented the last committee through which the bill needed to pass. The bill will now be voted on by the plenary of the House and, if successful, will go to the Senate for final approval.

Though full casinos are off the table, in its present form the legislation would provide licenses for up to 1,000 additional federally regulated bingo halls throughout Brazil, all of which will be legally permitted to house slot machines.

Unlike the 70-odd proposals that have gathered various levels of dust from 2004 onward, circumstance and content make this one very different. Already, the bill has traveled substantially farther in the process than any proposal has come to date. The House, emboldened, is for the first time ever in a position to take it all the way.

Bingo has long been a mainstay of the Brazilian culture, but scandals in the state lottery association prevented it from becoming an accepted industry, something this new bill seeks to rectify.

In its present form, key highlights of the bill call for a limit of one bingo hall per 100,000 inhabitants up to 1,400 additional halls and no more than a 50 percent ratio of slots to bingo seats at any one hall. The minimum payout for bingo and machines would be set at 70 percent of the drop, and gaming taxes are presently established at 17 percent of the hold. The federal government will receive 30 percent of the tax collection and the states will receive the rest, after the discount of the 15 percent for health programs, 1 percent for the Fund of Culture Support and 1 percent for the Fund of Sports Support.

The bill is expected to become law in March 2010.

By GGB Staff   Mon, Oct 05, 2009

The minister of tourism in the Bahamas announced that Treasure Bay Gaming and Resorts, based in Biloxi, Mississippi, will replace Isle of Capri casinos as the operator of the Our Lucaya Casino on Grand Bahama Island. Isle of Capri announced previously that it will leave the Bahamas at the expiration of its management contract for the casino on October 31.

Vincent Vanderpool-Wallace, minister of tourism and aviation for the Bahamas, said Isle and Treasure Bay have worked closely with government officials to assure continued operation of the casino while the transition is made. He also praised Treasure Bay for its decision to retain all current employees of the resort.

"The selection of Treasure Bay as operator of Our Lucaya offers our company a new opportunity for strategic growth in resort markets," said Treasure Bay COO Susan Varnes in a statement. "For quite some time, we have considered expansion into the Caribbean, and this casino offers the right operational fit with our portfolio, which includes properties located in Biloxi, Mississippi, and on the islands of St Croix, Aruba and Bonaire.

"As longtime developers and operators of Caribbean gaming properties, we plan to apply our experience at Our Lucaya to achieve strong fiscal results, as we have accomplished in similar jurisdictions. For us, there is no doubt that this property, located on the beautiful beaches of the Bahamas, holds the type of potential that can be enhanced by our proven business model. We will work hand-in-hand with the resort operator and the government of the Bahamas to strive for increased visitations and revenues, resulting in a true shared success."

By GGB Staff   Mon, Oct 05, 2009

The Morongo Band of Mission Indians and its card club allies have dropped-for this year-efforts to lobby the California legislature to legalize internet poker under an umbrella consortium that would be run by the tribes and the card clubs together.

But the tribe, one of the most successful gaming tribes in Southern California, is gearing up for a major effort in January. There are considerable monetary rewards that beckon if they can interest enough lawmakers in the bill, which would allow them to tap some $4 billion in internet poker that experts believe originates in the Golden State.

How much the state would get was uppermost in the mind of Senate President Pro Tem Darrell Steinberg in August. "I only have one question when I hear a proposal like that: How much money for the state general fund? Is it two, three hundred million dollars? If it is, I'd consider it. But I think it's going to take more than four weeks to analyze that kind of proposal and the potential economic benefits," he said.

The consortium's efforts have so far been endorsed by the 32-member California Nations Indian Gaming Association but has drawn opposition from others, such as the United Auburn Community and the Pechanga Band of Luiseno Indians, who paid for a poll that showed strong opposition to the idea among the state's voters.

At the federal end of the spectrum, U.S. Senator Robert Menendez of New Jersey in August introduced a bill to legalize online poker and "games of skill" that many players claim are not gambling at all.

By GGB Staff   Mon, Oct 05, 2009

In the second week of September, a case involving betting firm Ladbrokes versus Denmark's lottery and sports betting monopoly Danske Spil resulted in a favorable court ruling for the U.K. company.

The following week, in Sweden, Ladbrokes won an identical case against Sweden's gaming monopoly Svenska Spel.

At issue in both cases were television ad campaigns by Ladbrokes, which made use of the phrases "Danske spil"and "Svenska spel"-literally "Danish game" and "Swedish game"-and which the national operators believed were improper uses of trademarks. However, both the Danish and the Swedish courts ruled that the respective companies had no claim over the mere usage of the words.

The language used in the ads translated to "Danish game, English odds" and "Swedish game, English odds," by which Ladbrokes sought to promote a presumably more player-friendly payout structure than is offered by the national monopolies.

In a statement, Ladbrokes CEO Christopher Bell said, "This case means that Swedish monopolies cannot extend their power to monopolizing language. We will continue to highlight the consumer benefits of a competitive market in betting and gaming in contrast to disproportionate state monopoly laws and actions that restrict competition and choice."

The company had previously released a similar statement on the Danish ruling.

By GGB Staff   Mon, Oct 05, 2009

It was the Unlawful Internet Gambling Enforcement Act that put the screws to the online gaming industry, effectively shutting off the U.S. market to the major, publicly traded companies, but the impact has really never been felt because the particulars of enforcing the law have never been clear.

Now that the U.S. Department of Justice has established guidelines, banks are preparing for the December deadline that will put the regulations in place.

Zions Bancorporation has e-mailed customers advising them of the change. "In compliance with the U.S. Unlawful Internet Gambling Enforcement Act, we are required to notify you that you are prohibited from processing transactions derived from internet bets or wagers where such bet or wager is unlawful under any applicable federal or state law," read an email from Zions-owned Nevada State Bank.

Another of its institutions, the California Bank And Trust, warned its customers that it would "not process transactions derived from internet bets or wagers" and did not distinguish between incoming and outgoing transactions.

The enforcement rules follow a ruling by the Third Circuit Court of Appeals in Philadelphia that upheld UIGEA.

Meanwhile, a campaign launched by the Safe and Secure Internet Gambling Initiative suggested that the U.S. could pay for some of its more pressing needs-including the controversial health-care initiative-by legalizing, regulating and taxing online gaming.

Ads put together by the organization claimed that as much as $62.7 billion in new revenues could be garnered for the federal government in the first decade of legality.

"As Congress searches for ways to pay for health-care reform and other worthy programs, it should end the unsuccessful prohibition of internet gambling and start collecting taxes on the billions in revenue currently lost to unlicensed, offshore gambling operators," said Jeffrey Sandman, spokesman for the Safe and Secure Internet Gambling Initiative.

House Committee of Financial Services Chairman Barney Frank said he will hold a hearing and markup on the Internet Gambling Regulation, Consumer Protection and Enforcement Act of 2009 this fall. Frank has lined up more than 50 co-sponsors for the act.

By GGB Staff   Mon, Oct 05, 2009

A recent preliminary ruling from the European Court of Justice has dealt a blow to commercial online gaming operators seeking to offer their products in multiple jurisdictions. The decision seemingly opens the way for E.U. member states that wish to run their own online monopolies and exclude competitors.

The case involved the Portuguese gaming monopoly Santa Casa and Austria-based online operator Bwin. Santa Casa accused Bwin of entering into an illegal sponsorship and advertising arrangement with Portugal's pro soccer league, claiming the deal was not allowed because Santa Clara has the monopoly on lottery and sports betting in Portugal.

In a statement, the ECJ said that keeping commercial operators out "may be regarded as justified by the objective of combating fraud and crime."

The court cited a high risk of fraud associated with gambling, and said that online betting brings with it an even greater risk.

Reacting to the news, Bwin said in its own statement, "However, the court overlooks the fact that respectable private online gaming providers such as Bwin are just as able to control gaming on the internet as state monopolies."

The statement continues: "As founding member of the European Gaming and Betting Association, Bwin helped develop the compulsory Code of Conduct for private online gaming providers. This code stipulates strict controls which, given the transparency of the internet, have proven more efficient in the internet than in traditional brick-and-mortar gaming and, in particular, conclusively prevent any type of fraud.

By GGB Staff   Mon, Oct 05, 2009

Olympic Entertainment Group will enter the online gaming market in Estonia at the start of next year. Estonia will have online regulation in place starting January 1, 2010.

The traditionally land-based gaming operator has a partnership agreement with online gaming technology provider and operator Playtech.

OEG management believes the knowledge it has acquired operating land-based casino gaming will enable it to take advantage of synergies between the two gaming formats.

Separately, OEG has announced changes to its management. Starting October 1, Indrek Juergenson will become CEO of the group and Kristi Ojakaar will serve as a member of the management board.

Current CEO Andri Avila will step down but continue to serve on the supervisory board.

Other changes will see Tarmo Kase, director of subsidiary Olympic Casino Eesti AS and Andrus Koha, director of Belarus subsidiary FE Olympic Casino Bel, leave the company.

The new CEO of Olympic Casino Eesti AS will be current development director Meelis Pielberg.

The CEO position for FE Olympic Casino Bel will be filled by Saulius Petravicius, currently CEO of Lithuanian subsidiary UAB Olympic Casino Group Baltija.

By GGB Staff   Mon, Oct 05, 2009

Russia-based Alsart Group has opened the first of a planned 20 poker clubs in Ukraine, report news sources Jamma Europe and Yogonet. The move follows the closing of every legal casino and slot hall in the nation this past summer, after a deadly fire in a small provincial arcade.

The Poker Ring club chain is the first major gaming effort to appear in Ukraine since the nationwide ban. The now-vacant, former gaming properties and an abundance of trained, unemployed personnel are being seen as ingredients for accelerated development of a poker industry. The first Poker Ring club has eight tables.

Alsart hopes to cash in on an expected influx of Russian players, whose own poker circuit was destroyed almost overnight in July, when the Russian government decided to remove tournament poker from the approved list of sports. Prior to the government decision, many former casinos and slot halls in Russia were being converted to poker clubs.

In August, the European Poker Tour event originally planned for Moscow was moved to Kiev. 

By GGB Staff   Mon, Oct 05, 2009

Storm International has opened a new casino in the city of Bishkek, the capital of Kyrgyzstan.

The X.O. Casino, described by Storm International as a "chamber casino" for high rollers and well-heeled visitors to the city, is situated in the Hyatt Regency Hotel in the Bishkek business and government district. The Hyatt Regency Bishkek is the only five-star hotel in Kyrgyzstan.

The casino offers 12 tables of roulette, blackjack, punto banco and Russian poker, plus 30 late-model slot machines, set in an art deco interior. Featured among the slots are a large number of Gaminator multi-game machines from Novomatic.  

A grand opening gala was held poolside at the Hyatt on September 3. Popular local bands and entertainers helped to draw a large crowd. The evening was capped with a fireworks display that inspired Darren Keane, CEO of Storm International, to joke, "This is the most memorable event since the times of Genghis Khan!"

Storm International's president and founder, Michael Boettcher, was one the pioneers of the Moscow casino industry. Since the casino ban took effect last July, Storm operates gaming at the Shangri La Casino in Yerevan, Armenia, the Hollywood Entertainment Center in Monterrey, Mexico, and now the X.O. Casino in Bishkek.

Later this month the company will open a new Shangri La casino in Minsk, capital of Belarus.

By GGB Staff   Mon, Oct 05, 2009

After legal challenges failed to stop the Match-E-Be-Nash-She-Wish Band of Pottawatomi Indians' plan to build a casino on its reservation in Wayland Township, Michigan, the tribe finally broke ground on the facility in mid-September.

The first phase of the Gun Lake Casino will be a somewhat scaled-down version of the tribe's original plans for the property. The casino was designed to be a 192,000-square-foot property with 2,500 slot machines and 75 table games. However, due to concerns over the tight credit market and the faltering economy, the Gun Lake Casino will be less than half the size it was originally intended to be when it opens in approximately one year.

"Given the current economic conditions, it makes sense for us to build this project in phases," tribal Chairman D.K. Sprague said in a news release. "This allows us to bring jobs to our area sooner, and we look forward to planning and developing the next phase as the economy recovers."

The first phase of the project will be comprised of 1,200 slot machines and 36 table games in an 83,000-square-foot property. The tribe will create 750 jobs with the first phase, which is less than originally estimated.

Station Casinos will build and manage the property when it opens.

By GGB Staff   Mon, Oct 05, 2009

The Chippewas of Mnjikaning host Casino Rama on their land in Orillia, Ontario, and also receive 35 percent of the casino's net profits. The Chippewas bid against other tribes in the province to host the casino on their land and won, with the agreement that the casino's profits would be split among Ontario's tribes to benefit First Nations people, and the province would not take a share.

When the Chippewas borrowed $40 million from the province to finance construction of the casino in 1996, an issue arose that is now the subject of a court case 13 years later. The Chippewas claim that the province shut down construction on the project after lending financing to the tribe, essentially holding the project hostage until the First Nations agreed to give 20 percent of the casino's profits to the Ontario government.

The Chippewas are now suing the Ontario Lottery and Gaming Corp. over the 20 percent the government takes from Casino Rama's revenues. The province is supporting the claims of the other tribal chiefs, who say that the Chippewas' 35 percent piece of the pie was not an indefinite arrangement, and that the casino's revenues should be shared equally among the First Nations.

By GGB Staff   Mon, Oct 05, 2009

Gaming interests in northeastern Florida have joined their peers down south to voice their opposition to Governor Charlie Crist's proposed compact with the Seminole Indians.

The latest version of the highly anticipated compact, delivered just before the August 31 deadline, would allow blackjack and other banked card games at all seven of the tribe's Florida casinos, not just four as lawmakers had previously demanded. 

But it would also net $150 million a year in revenue for the state, or 12 percent of the tribe's net gaming profits, whichever is more, for a total of at least $6.8 billion over 20 years. The money is earmarked for education, Crist says.

In addition to Class III slots and card games like blackjack and baccarat, the tribe also would get the exclusive rights to some games outside Miami-Dade and Broward counties.

Now it's up to the legislature to decide, and Crist said he is optimistic about their response, which could come during a special session in October.

"I believe that it's close enough to what the legislature wants that it ought to be able to obtain their approval," the governor said. "I hope they will, because I know it's good for the kids."

But the state's parimutuels say that giving the Seminoles exclusivity outside Miami-Dade and Broward counties would constitute an unfair advantage and, in effect, prevent any expansion of gaming for years to come.

Michael Munz of Jacksonville Greyhound Racing told the Florida Times-Union that the proposed compact could be a money-loser in the long term.

"Why would you have a compact that you pass today that restricts what you can do tomorrow?" he asked.

Some lawmakers say if the Seminole pact hurts the parimutuels, which also pay taxes, at least part of the benefit to the state would be canceled out.

"It matters how we treat the parimutuels," said Rep. Audrey Gibson, a Jacksonville Democrat.

The agreement included some concessions to the parimutuel sites, including lower taxes and expanded 24-hour poker.

But giving the tribe a 20-year monopoly on casino games in the rest of the state will not go down easily in the parimutuel industry, which currently employs almost 25,000 people.

Despite Crist's close alliance with the Indians, the state's 27 parimutuels have political clout of their own. They jointly generate $1.3 billion in revenue and pay more than $160 million in taxes each year. And since 2008, they have spent at least $5 million lobbying state officials, five times more than the Seminoles.

The legislature is scheduled to return to Tallahassee during the week of October 5 for pre-session committee meetings. It is unclear so far if they will weigh in on the proposed compact at that time.

But Senate President Jeff Atwater is in no hurry to ratify the controversial deal, said his spokeswoman Jaryn Emhoff.

"Until we finish that and have a good idea of what's in it, any talk of a special session is very premature," she told the Democrat.

By GGB Staff   Mon, Oct 05, 2009

Despite opposition from the Catholic bishop, several business groups in Legazpi City in the Philippines have endorsed a casino to be built in the city. The Albay Filipino-Chinese Chamber of Commerce Inc. (AFCCCI) and the Legazpi City Chinese Chamber of Commerce and Industry sent a letter to the city's mayor, Noel Rosal, expressing the opinion that a casino would increase tourism, create jobs and add tax revenue in a difficult time.

"With the tourism commerce being ranked at top as income-producing industry, it is with great pride that we regard the city of Legazpi not far behind as one of the country's most visited places in the region with the majestic Mayon Volcano as the crème," said Vergilio Yu, AFCCCI president.

Yu says the addition of a casino will generate more business in the port city.

"Investments will pour in. If we will be able to align things accordingly, the government will have more than the required collections for permits, taxes and licenses. More projects that can be financed by the local office will compensate the cost of living," Yu said.

The endorsement comes in the face of opposition from Bishop Lucilo Quiambao of the Diocese of Legazpi, who said a casino would increase social ills and affect the "moral fiber" of the community.

Yu, however, said the region must continue to develop, as it is with a plan for expanded "eco-tourism."

"We need to settle not just to what is present but continuously strive to be better in terms of places, services and activities which we can offer to the visiting patron," said Yu.

By GGB Staff   Mon, Oct 05, 2009

August was a good month for Macau casinos; in fact, it was a record month. With US$1.5 billion in gross gaming revenues, it was the highest-ever monthly revenue and more than 17 percent higher than the same period last year. It was the second month where revenue increased year-over-year, leading some analysts to predict that the long downturn that began in early 2008 is over.

The revenue report caused several Macau-based stocks to soar. Shares of Galaxy Entertainment Group rose 6.4 percent, while Melco Entertainment rose as much as 7.1 percent. Wynn Resorts and Las Vegas Sands also surged on the report.

Ironically, the overall Macau economy continued its decline, with the SAR's GDP shrinking 13.7 percent in the second quarter.

Some of the growth may be attributable to two new casinos that opened in June, Melco Crown's City of Dreams and Hotel Lan Kwai Fong Macau, bringing the city's total number of casinos to more than 30.

One of the major beneficiaries in August was MGM Mirage, which lifted its market share for its MGM Grand Macau from 8 percent to 11 percent, vaulting over Galaxy Entertainment to escape last place.

MGM Mirage Chairman and CEO James Murren said the company has made many changes in the operation of the casino and is just starting to fulfill its potential. He said the company overestimated the appeal of high-end restaurants and hotel rooms to Chinese gamblers.

"We put a lot of money in public spaces, a beautiful conservatory, and restaurants and rooms, and they haven't embraced that to make it economically viable," Murren said. "Where we compete best is in the high-end resort experience, but we could not afford to neglect the fact that, regardless of what we want, customers are going to do what they want. That was one of the philosophical changes we needed to make."

The company has changed management, increased marketing and re-designed casino areas to make them more attractive to gamblers, says Murren.

By GGB Staff   Mon, Oct 05, 2009

Three months ago, the owners of three racinos in the state of Delaware signed on to what they thought was a new day in Delaware gaming. Last month, they were facing the fallout of just what they bargained for.

An appellate court judge in late August issued an injunction stopping a plan to institute single-game sports betting by football season. All three racinos-Delaware Park, Dover Downs and Harrington Raceway-had planned to open full Vegas-style sports books September 1 under a law signed in May by Governor Jack Markell.

The law also authorizes table games to be placed alongside the slots already at the racetrack casinos. That plan suffered a setback when Markell and top lawmakers opted not to call a special fall session to approve regulations. Tables are not expected to go live until next summer at the earliest.

The sports wagering, though, was approved for football season with both single-game and parlay, or multi-game wagers. Delaware was one of four states grandfathered under a 1992 federal ban on sports betting, based on a 1976 sports lottery run by the state. An expected lawsuit filed by the major sports leagues-the NFL, NBA, NHL, Major League Baseball and the NCAA-sought to block implementation of sports wagering because the 1976 lottery allowed only parlay bets and not single-game wagering. A District Court judge held for the state, denying the leagues' request for an injunction to halt wagering while the case was pending.

The leagues quickly appealed and were granted expedited status by the U.S. Third Circuit Court of Appeals in Philadelphia. One week prior to the opening of the NFL season, the three-member appellate panel agreed with the leagues and granted an injunction blocking single-game sports betting.

As the leagues had hoped, the panel ruled on the merits of the case, rather than the procedural matter of a temporary injunction while the case was ongoing. Voting unanimously, the court held that single-game wagering "violates the Professional and Amateur Sports Protection Act"-the 1992 federal ban-and that Delaware's grandfather status applied only to the multi-game parlay wagering present in the 1976 sports lottery.

In addition, Delaware will only be able to accept parlay bets on the NFL, but not on any other sport.

Delaware has appealed the decision to the full 12-member federal appellate court. Meanwhile, Delaware sports betting went live at the start of the NFL season, but bettors were limited to three-game parlays, which means that the state sports books will be dark on the biggest betting day of the year-Super Bowl Sunday in February. 

By GGB Staff   Mon, Oct 05, 2009

For a company that seems to be barely keeping its head above water, Harrah's Entertainment behaved more like an angered shark than a wounded catfish last month. Despite the fact that the company is laboring under massive amounts of debt since being taken private in 2007 by Apollo Management and Texas Pacific, Harrah's last month made moves in two jurisdictions that reaffirmed that gaming's largest company is not to be taken for granted.

In Las Vegas, Harrah's Entertainment has purchased part of Planet Hollywood's $860 million in debt, which some analysts say could lead to an eventual takeover of the property by Harrah's.

"With covenant and debt defaults looming around for some of these properties, (purchasing debt) is a potential way to gain eventual ownership of a property," Applied Analysis principal Brian Gordon said.

University of Nevada-Las Vegas finance professor Mike Sullivan told the Las Vegas Review-Journal that if Harrah's can eliminate Planet Hollywood's debt, the property could still be a money-maker.

"Harrah's is buying a position on the cheap right now but with long-term ideas," Sullivan said. "They've got their foot in the door right now. They are picking up a position of influence, so they must be interested in acquiring assets."

Officials at both Harrah's and Planet Hollywood have declined to confirm the purchase, and many are wondering how the highly leveraged Harrah's managed to come up with the funds to buy the debt in the first place. However, Planet Hollywood must be grateful that Harrah's stepped in. The property was in danger of defaulting on its loan agreements, according to an August 14 filing with the Securities and Exchange Commission.

In Ohio, the company purchased Thistledown Racetrack from Magna Entertainment Corp. at a September auction for $89.5 million, placing it in a strategic position now that Ohio Governor Ted Strickland has approved VLTs at the state's seven racetracks. Even if Ohio voters approve four regional casinos in a competing referendum in November, one of which would be in Cleveland where the racetrack is located, Harrah's is still in good shape.

Harrah's won an auction for the property after 40 rounds of bidding that had been started at $22.3 million by Penn National Gaming. The auction was part of bankruptcy proceedings for the Delaware-based Magna, and has been approved by the bankruptcy judge. The purchase does require the approval of Ohio gaming regulators, however.

Thistledown is among 11 racetracks that Magna is selling off, others being Santa Anita, Lone Star and Golden Gate Fields. It recently sold Remington Park to the Chickasaw Nation of Oklahoma.

In mid-September, however, a challenge to Strickland's unilateral legalization of the VLTs at the racetracks was upheld by the Ohio Supreme Court, meaning that the measure will have to be placed on the November ballot, along with the four-casinos proposal, and be passed by state voters in order to  be implemented.

By GGB Staff   Mon, Oct 05, 2009

Last month the Baltimore-based Cordish Co. announced the sale of its 50 percent interest in a casino adjacent to the Kansas Speedway to Penn National Gaming. This allowed Penn National and its rival, Kansas City Speedway Development Corp., to combine forces in a single casino bid. Originally, there were eight bids to run a state-owned casino in Wyandotte County.

The new partnership faced questions from the Lottery Gaming Facility Review Board last month. The panel was due to begin hearings on the competing plans, plus plans for the Wichita areas, and decide between them by December. Instead it heard about the combined project. This may truncate that process, although the board still plans to hold extensive hearings.

The casino resort will no longer be a Hard Rock-branded facility. It will instead use the Hollywood-themed proposal similar to others that Penn National operates. It will still be built on Turn 2 of the speedway. Construction will begin in 2011 and it will be open the following year, say the new partners.

The board questioned the partnership's representatives about its plans to postpone building a hotel until 2014. Penn National originally promised to build a hotel and casino simultaneously for its proposal, which it has now dropped.

According to Board Chairman Matt All, "If we believe the contract we have been given does not maximize the possibility we have been given, then this board is duty bound to turn that contract back. This board is not going to be a rubber stamp even though we have only one contract."

By GGB Staff   Mon, Oct 05, 2009

West Virginia's famed Greenbrier Resort broke ground September 2 on a casino that new owner Jim Justice hopes will restore some of the past luster to a resort that once was a favorite of U.S. presidents.

Justice, who bought the Greenbrier out of bankruptcy in May, has begun construction on the casino, along with new retail and dining areas, with a targeted completion date of next April. Combined, the casino, restaurants and retail will encompass approximately 80,000 square feet. The $25 million casino will house 320 VLTs and 38 table games. It will be built under the front lawn, which will retain its traditional flower bed but will add a reflecting pool, pedestrian walkways, benches and a leisure area. 

Justice has pledged to recapture the five-star status in the Mobil Travel Guide once enjoyed by the Greenbrier, which was managed by Marriott before this year's purchase. The resort lost the five-star rating in 2000.

A spokeswoman for the Greenbrier said the resort is planning to open a small temporary casino this fall-possibly by October-that will include 40 slots and 10 table games.
 

State officials questioned whether the resort can have games in place by October. While the West Virginia Lottery issued a license to Justice, the lottery commission still must approve a casino floor plan and issue licenses to employees who will work in the gaming areas.

"We're anxious to see the Greenbrier get started," Lottery Commissioner John Musgrave told the Associated Press. "That's a very aggressive schedule for an October opening." He noted that the state's three racinos each took at least three months to launch slots after receiving the license.

The permanent casino facility is planned as an elegant space, with free champagne nightly to all guests-which will be limited to overnight resort guests, members of the Greenbrier Sporting Club and members of other on-property clubs. Attendees at conventions and meetings at the resort also will have access to the casino.

By GGB Staff   Mon, Oct 05, 2009

With development dollars rapidly disappearing, several media sources reported that Revel Entertainment had reached an agreement with a Chinese company to provide the balance of the money necessary to complete the Atlantic City project and open the first new casino on the Boardwalk since Trump Taj Mahal opened in 1991.

According to the reports, China State Construction Engineering Corp. had agreed to invest $1.7 billion with the construction firm Tishman and Revel to help build the massive casino resort on the Atlantic City Boardwalk.

But the next day, Revel appeared to back away from the news, saying that China State Construction had only agreed to help Tishman with the construction and would not be investing any money. Sources close to the negotiations, however, say that the reported deal is likely to be completed once several filings are made and final details are hammered out between the partners.

China State Construction certainly has the financial wherewithal to complete the deal. One of the largest and most successful companies in China, last year it produced revenues of $23.5 billion and employed 121,500.

Revel will include almost 2,000 rooms, a plethora of non-gaming amenities, restaurants, theaters (5,000 seats and 1,500 seats), several pools and spas, and a 100,000-square-foot casino. The property expects to employ at least 4,000 people.

China's biggest property conglomerate said last month in a filing with the Shanghai Stock Exchange that the project is expected to be completed in July 2011.

Revel CEO Kevin DeSanctis told Global Gaming Business he is confident the property will be profitable.

"It's no longer, 'Can you build it for this amount of money?'" he explained. "Fundamentally, the project is built. We understand exactly what the cost is, so the only real question now is 'What, from a profitability perspective, can this project do?'"

By GGB Staff   Mon, Oct 05, 2009

The Ontario government is cracking down on unnecessary spending at government agencies, which is allegedly why the administration of Premier Dalton McGuinty decided to fire Ontario Lottery and Gaming Corporation head Kelly McDougald and force the lottery's board to resign.

According to information released from OLG employees' expense reports, Ontario taxpayers were footing the bill for expensive dinners, drinks and car washes, which McDougald has not denied, but in a recent court filing she claimed the government wrongfully dismissed her and that the administration did not "seek or provide context" for the expenses.

McDougald also noted that the lottery company's profit has increased in the last year and that some of the expenses were necessary in order to conduct business at the corporation.

"During my time at OLG, I conducted myself ethically, professionally, in a dedicated and disciplined way, intending always to meet or exceed the expectations of the people of Ontario," McDougald said in a written statement.

According to the Toronto Star, McDougald is seeking a $9 million settlement from the government, and NDP leader Andrea Horwath told the newspaper that McGuinty's administration may be wise to settle rather than pursue a court battle to prove a point.

The government has yet to comment on the details of the case, but Finance Minister Dwight Duncan told the Star that the administration denies wrongfully dismissing McDougald.