By GGB Staff   Tue, Dec 08, 2009

Few people expected 2009 to be so bad. Yes, the second half of 2008 was not good, but many hoped and prayed that 2009 would see a rebound. It was not to be, as the economy continued to crater and the main gaming jurisdictions of Las Vegas, Macau, Atlantic City, Eastern Europe and elsewhere virtually imploded. There were different reasons for the downturn in the various regions of the world, but the year 2009 was generally a bad one for all involved in gaming.

As we approach the dawn of 2010, there is some light at the end of the tunnel (if it's not an oncoming train, that is). Revenue decreases have flattened out to some extent. New technology is creating opportunities where there were none before. And the silver lining in any economic downturn is that government turns to increased gaming to raise more revenues, which is happening to a large extent in the United States and to a lesser extent around the world.

The editors of Global Gaming Business put our heads together and sought to identify 10 trends that will make a difference-either plus or minus-in 2010. The start of a new decade is often a turning point in society, and we're quite confident that things will change in the gaming industry. It's hard to imagine much worse, but when you review the 10 trends we've highlighted for the next year, we're confident that the members of the gaming industry will come together in confidence to face the challenges and take advantage of the opportunities that will be presented to us next year.  

1. It's the Economy, Stupid!
All the ills of the gaming industry can be traced back to one thing

The economic slide that started in the second half of 2008 accelerated to a thrill ride in the first half of 2009 and slowly coasted to a stop by the end of the year. Now, with a new year looming, questions abound about how the gaming industry will respond.

In some sectors, the economic downturn never arrived, or wasn't quite so devastating. South America, Australia/New Zealand and some pockets in Europe largely escaped the consequences. Macau was hit with the double whammy of an economic slump and Chinese meddling in its market. Atlantic City and Las Vegas got the triple whammy of economic downturn, increased competition and governmental intervention in the meetings and travel business. And of course, Russia was simply wiped out.

Some experts believe that gaming is "bouncing along the bottom" of the downturn. And there's some evidence of that, as the revenue declines in most areas now are limited to single digits instead of the double-digit dips we saw in the first half of 2009.

Bill Lerner, a principal with Union Gaming, believes that the end is in sight.

"We forecast the U.S. gaming market will inflect positively in 2010, growing between 5 percent and 10 percent," he says. "Comparables to 2009 will be relatively easy while the broader macro picture will dictate the magnitude. We are already seeing stability in the last quarter of this year across all markets."

But all jurisdictions are not created equal, as we see from the initial impact of the economic downturn, and a turnaround is likely to be equally sporadic. The East Coast of the United States has experienced a gaming boom over the past several years, with Pennsylvania, Delaware and New York expanding existing gaming, and Maryland and Ohio joining the roll of legal gaming jurisdictions. This has depressed the Atlantic City gaming industry and increased already-heated competition. Rebound in that sector is far off.

In Las Vegas, the opening of CityCenter this month will skew the first-quarter results.

Larry Klatzkin, a longtime gaming analyst and current managing director at Chapdelaine & Co., says a Las Vegas turnaround is contingent upon the reaction of the Strip operators.

"If they get stupid," he explains, "and kill their room rates the same way they did when Encore opened last December, it could be a long way back."

On the Pacific Rim, it's another opening that will shake the region. The debut of gaming in Singapore will bring almost $10 billion in casino entertainment infrastructure to the region, and, once again, the reaction of the existing operators will be crucial. Ironically, the tipping point will be the structure of the Singapore VIP programs rather than the actual physical facilities.

In Australia, there are some disturbing ongoing trends that will punish the gaming industry for failing to be proactive in combating problem gambling.

At the corporate level, the financial structure of casino companies-public or private-will play a role in the recovery of the gaming business. Many corporations-Harrah's Entertainment, MGM Mirage, Las Vegas Sands, Station Casinos, Trump Entertainment and more-have to deal not only with reduced revenues, but also with debt payments that were structured on the "reality" of the good times. 

Lerner says it makes sense to refinance when possible.

"Debt restructuring will allow for companies to recalibrate balance sheets and to begin reinvesting in existing casinos," he says. "This could lead to greater share of consumers' wallets."

So the revival of the gaming industry is contingent on the major companies not only bouncing back from the recession but also finding lenders understanding enough to allow them to extend their debt.

And that list of companies should have included tribes. The two big Connecticut tribes have already experienced difficulties in repaying their debts, and many smaller tribes and tribal gaming operations are also finding it hard to live up to their debt obligations.

A comment from the former chairman of the Mashantucket Pequot tribe that per-capita payments to tribal members would take precedence over debt repayment frightened the lenders, who long had doubts about lending to sovereign nations. Subsequent commitments to repayment eased those fears, but any repeat could dry up the source of funding for many tribes still looking for financing.

Lerner says questions about tribal gaming finances are just temporary.

"There does seem to be greater reluctance, but that likely is a transitory issue," he says. "Many gaming tribes have been excellent credits and partners over time."

But if the Obama administration next year fulfills some tribes' hopes that the Interior Department would look favorably upon off-reservation gaming, all bets would be off and the spigot would flow once again with tribal gaming financing.

But it all depends on one thing that is largely beyond the influence of the gaming industry: a strong and sustained economic rebound.

-Roger Gros

2. Asian Interaction
Legalization Trends on the Pacific Rim

The success of gaming in Macau after the Chinese government opened the Special Administrative Region up to new operators in 1999 has spurred interest in gaming in other parts of Asia.

In 2010, two "integrated resorts" will open in Singapore. After gaming was approved by the Singaporean government in 2005, what is often seen as the cleanest and least corrupt city in Asia embarked on a bidding process, regulatory setup and construction phase that is being closely watched by its neighbors. Designed to attract tourism and business meetings, the two Singapore projects (owned primarily by Las Vegas Sands and Malaysia's Genting) are multibillion-dollar, iconic buildings that will create an immediate impact on the Asian market.

Other countries where gaming already exists are trying to copy the Singapore model. The Philippines has designed a four-casino project for the shores of Manila Bay, asking for an investment of at least $1 billion each.

In Vietnam, several regions are trying to attract mega-investments to that infrastructure-challenged country.

Cambodia hosts a generally healthy gaming industry, though not nearly at the size being contemplated elsewhere.

South Korea's gaming industry is thriving, but prohibitions on gambling by locals may keep it from growing very quickly.

But it's the new jurisdictions that have gaming companies salivating because of the size of the markets.

Taiwan approved gaming earlier this year, with an eye to establish casinos on the Penghu Islands, where officials had long pleaded for help to revive tourism on the remote atolls. But residents of the islands had other ideas, and in October rejected gaming in Penghu County, shelving attempts at casinos for at least three years.

Attention has now shifted to the Kinmen and Matsu islands, which are located just off the Fujian Province, on the Chinese coast. But questions about infrastructure, potential Chinese customers and the ever-present referendum may derail those hopes as well.

Other gaming areas of Asia also are on the move. Casino development in Tinian is finally under way after legalization occurred almost 10 years ago, with one casino currently open. Some Okinawa officials are considering casinos, and it seems that Guam may-yet again-vote on gaming in upcoming elections.

The big prize in Asia has to be Japan. With millions of gamblers who seem to be content with pachinko and pachisuro parlors, Japan has been considering gaming for at least a decade as an economic generator. Now that Japan's Democratic Party was voted into power in August, replacing the Liberal Democrats for the first time in decades, it would seem there is some will to move forward with gaming. But the Democratic Party is trying to consolidate its power so it can remain in office through the next election, so it's unclear whether it will take on the risky issue of gaming anytime soon. Only time will tell.

-Roger Gros


3.  Jump-Starting The Replacement Cycle
New Slot Sales Hold Promise For 2010

It already has begun.

By the beginning of this month, slot manufacturers reported an up-tick in sales. At last month's Global Gaming Expo, the booths of most slot manufacturers were packed with a variety of innovative new games that was more extensive than we've seen for years.

The slot-makers all have ramped up their R&D in preparation for one giant trend on tap for 2010-the next slot replacement cycle.

"I don't think the floors have ever been older than they are right now," said Bally Technologies Slot Development VP Mike Mitchell last month, in an interview for GGB's annual show issue. "The average age of slots on the casino floor domestically is greater than it has been for the past 10 or 15 years."

Slot manufacturers agree that a huge replacement cycle is about to boost their business with sales spikes the like of which have not been seen since before the recession. To the existing floors that need to be renewed, we can add new properties coming on board in Ohio, West Virginia, Pennsylvania, Maryland and elsewhere as potential new sales centers.

As in the past, WMS President Orrin Edidin says that the replacement cycle will be driven, in part, by technology.

"Everyone agrees that the replacement cycle is artificially long," he says. "In the past, we've seen technology advances artificially accelerate the replacement cycle, such as with the TITO technology, and that may happen again with server-based technology. But we expect that cycle to normalize over the next year or two. And to be realistic, the slot machine is the revenue engine for most casinos, and they understand they have to update that floor regularly to remain competitive and drive revenue."

Without even considering the new server-based technology about to begin appearing on the slot floors, all the manufacturers are creating new game styles, from community games to multiple progressives to reel/video hybrids, with an eye toward repopulating a slot floor that has grown old from the absence of capital budgets at the major operators.

"We believe the there is pent-up demand for a refresh of casino floors," says Eric Tom, executive vice president of sales and marketing for International Game Technology. "While it remains unclear when the reinvestment cycle will begin, we have been hard at work developing great new games and enhancing the DynamiX platform in anticipation of cap-ex budgets loosening up."

-Frank Legato


4. Frank Talk
Prospects for Internet Gaming Legalization in the U.S.

One of the most devastating moments in the short history of online gaming was a clarification of the attitudes of the U.S. government several years ago.

Except for horse racing, online gaming in the U.S. has been in limbo ever since the Unlawful Internet Gambling Enforcement Act was passed in 2006. That unenviable piece of legislation-UIGEA was quietly inserted into a ports security bill in the dead of night and never presented for debate-threw the U.S. online gaming market into a legalistic swamp from which it is still awaiting extrication. The impact was felt far beyond the shores of the United States. Many internationally based online casinos, sports books, poker rooms and gaming companies folded or changed their shape forever, as a result of UIGEA.

As of mid-November, two bills directly dealing with online gaming were being studied by committees in the House of Representatives and one bill was in the Senate. 

H.R. 2267 was introduced in the House by Rep. Barney Frank of Massachusetts in May. The bill would provide for online gaming licensing under jurisdiction of the Secretary of the Treasury. The bill was intended for presentation to the House for debate in October but was delayed by more pressing matters, including health care reform. The bill had 62 co-sponsors.

H.R. 2268, introduced at the same time as the previous bill, would amend the tax code to include regulation of online gaming. It was introduced by Rep. Jim McDermott of Washington, with Frank as one of four co-sponsors.

In the Senate, S. 1597 was introduced in August. This bill would provide for licensing of specifically online poker and other so-called skill games, again by the Secretary of the Treasury. The bill was introduced by Senator Robert Menendez of New Jersey, with no co-sponsors to date.

UIGEA deals with transferring funds between online gaming accounts and financial institutions and does not itself outlaw any particular form of gambling. Although its effects have been felt since passage, the law was scheduled to become fully operative on December 1.

In early October a bipartisan group of legislators requested a one one-year delay in implementing the full law, to allow time for the above-mentioned bills to pass.

Given the varied interests lobbying for and against online gaming, one year might not be enough.

-Rich Geller

5. Coming to America
European Slot Manufacturers Reach Out To New Markets In The Americas

European slot manufacturers already were looking to expand into new markets before the economic meltdown of the past two years. Slot-makers in Eastern Europe were looking to expand before the monumental events of last summer.

But last summer's double-whammy market collapse has added urgency to the quest. European slot manufacturers had plenty of time to prepare for the closing of the Russian casino market on July 1. Few expected Russia's new, middle-of-nowhere "gaming zones" to be anywhere near ready for casinos by the time the gaming halls were forced to close in Moscow, St. Petersburg and other highly populated areas.

Slot manufacturers such as Casino Technology, Euro Games Technology and others in Eastern Europe had contingencies in place to take games from the Russian market and place them in Serbia, Romania, Macedonia and elsewhere in the Balkan region.

Then came the closure of all slot venues in the Ukraine, a move that had been contemplated by the government there but that was implemented all at once after a fire at one slot parlor-to the surprise of many.

The closure of those two large markets in the East is accelerating expansion plans for European slot manufacturers, and more and more, those expansion plans are turning toward the Americas.

Companies like Novomatic, Casino Technology and EGT are likely to spread their presence in 2010 in the Americas, beginning with product placements in markets such as Peru, Argentina, Chile and Paraguay. European slot manufacturers also are likely to expand efforts to penetrate the market in the United States, where several have games before Gaming Laboratories International intended for California, Oklahoma and other Native American markets. (Novomatic already has games placed in Colorado.)

Finally, European slot-makers, as others, are watching the Americas closely for the opening of some huge new markets that rely on the progress of gaming legislation. The largest of these are Brazil and Mexico.

As casinos everywhere gear to renew their slot floors, and as the slot-supply sector becomes more crowded, 2010 becomes more and more interesting.

-Frank Legato

6. The State of the States
Economic Concerns Trump Moral Issues

The approval of gaming in Ohio (see page 6) was a surprise, since it took five times before voters realized that gaming could bring an economic boost unavailable by any other means. Whether the favorable tax rate and designated operators remain in place until the referendum becomes law is yet to be seen, but Ohio will clearly become a major mid-America jurisdiction, especially if the governor's choice to add VLTs to racetracks also comes to pass.

The silver lining in any economic downturn in the United States is the hunt for more tax revenues in many jurisdictions. Where gaming is not legal, officials consider its implementation. And where it is legal, they often try to figure out ways to expand it-and take more tax revenue. That has certainly been true in the current economic environment.

It started with Maryland in 2008 as the state desperately tried to plug a billion-dollar-plus hole in the budget. Up to 15,000 machines were to be deployed throughout the state, but like all new jurisdictions, it has taken some time to be implemented. The state has only issued its first two licenses in the last two months. High tax rates and difficult siting issues ensure that deploying the full contingent of slots in Maryland is still years away.

Nevertheless, other states are considered to be on the cusp of gaming legalization.

Now surrounded by states where gaming is legal, Kentucky is likely to jump on board in the next couple of years. As the nation's premier locale for race horse breeding, Kentucky will likely designate a portion of its revenues to the racing industry.

Massachusetts, tired of seeing its gaming patrons leave the state to gamble at Connecticut casinos, seems likely to approve large commercial casinos now that the political will is in place on Beacon Hill.

And New Hampshire has already set in place a commission to study gaming and a board to regulate it, so it appears that the effort will continue in earnest in 2010.

Texas rejected gaming at the end of the last legislative session, but economic conditions in the Lone Star State have only continued to worsen, especially in tourist-driven regions, so it's likely gaming will be reconsidered next year.

Now that Florida has failed to come to agreement with the Seminole tribe on a compact, there are rumblings that legislators may allow voters to decide if commercial gaming should be legalized. If so, all bets are off for the tribal casinos and the racinos in the southern part of the state.

Table games have already been added to the mix in West Virginia and are soon to follow in Pennsylvania. Sports betting has proven to be something of a thorny issue in Delaware following a negative court decision, but the legal challenges to that ruling are not over.

Another Illinois casino is under way in Des Plaines, owned by Chicago billionaire Neil Bluhm, and the approval for video gaming in bars and restaurants only adds to the woes of the existing industry in the Land of Lincoln.

So while gaming is on the move in the U.S. as a result of the economic difficulties, the unrealistic expectations of politicians often impose incredibly high taxes, huge up-front fees and other conditions that keep gaming from reaching the potential jobs, infrastructure and tax revenues sought by those politicians.

-Roger Gros

7. Proving Ground
CityCenter To Be a Giant Test For Server-Based Gaming

For the past few years, research and development in the slot sector has invariably returned to one theme: Games must be ready for the move into the digital age.

Of course, the economy has held up the move to server-based gaming in some ways. Operators have not been able to convert entire slot floors over to Ethernet capability to create completely networked slot operations. Some manufacturers have been slower than others to invest in technology to make their games network-ready.

In other aspects, though, the economy has helped the move to digital gaming along. Major slot manufacturers have created smaller-scale solutions to show what networked floors can do, without requiring operators to do major retrofits. WMS Gaming has created games that are essentially miniature server-based gaming operations. Bally has demonstrated networked initiatives through its casino management systems and its "iVIEW" service window. IGT has created "sbX Tier One," a complete server-based gaming system built for a small scale of 40-100 machines.

Meanwhile, all manufacturers have created new cabinet styles that will allow their game content to be easily switched out without switching out the actual boxes. Slot glass has disappeared, replaced by upper LCD video screens. Dynamic button panels have appeared.

In 2010, the industry will have a giant test bed for all the applications that are possible with a server-based floor. The Aria Resort & Casino at CityCenter opens this month with a fully Ethernet-equipped, server-based slot floor. The casino's slot manager will have complete control of game downloads, instant tournaments, competitive applications and other new technologies via a full-blown IGT "sbX" system.

"Aria at CityCenter is the next-generation business model, providing incredible operator value," says Eric Tom, IGT's executive vice president of sales and marketing. "The operator can change his floor instantly to customize to who is in his casino, as well as communicate with those players like never before."

WMS Gaming, a major IGT rival, has already signed on to provide applications and game content for the system. The two suppliers are hoping other slot manufacturers join in soon, to create a true image of interoperability in the digital slot floor.

The next year will take networked gaming from the theoretical to the practical stage. Everyone will be watching.

-Frank Legato


8. Chinese Intervention
Macau Growth Uncertain as Mainland Government Tinkers

When the gaming industry in Macau expanded exponentially over the years since China liberalized the gaming laws following the handover of Macau from Portugal in 1999, the Special Administrative Region has been seen as gaming's hottest spot. But it was that super-heated growth that caused a backlash from the Chinese government in late 2008.

Since the core of Macau's market is based in the neighboring Guangdong province, China began to regulate the number of times Guangdong residents could visit Macau, cutting it to once every two months from its previous once-a-month routine. This effectively slowed Macau growth, causing revenues to dip throughout the end of 2008 and through 2009.

A relaxation of the restrictions over the summer once again boosted Macau gaming revenues to record territory, and just last month the Chinese government again imposed the visa restrictions to cool the growth once more.

Ironically, this kind of intervention has been welcomed by the operators. Steve Wynn, chairman of Wynn Resorts, said the control of visitors was necessary to make sure the gaming industry in Macau remains healthy.

Also last month, Grant Bowie, the head of MGM Grand Macau, said basically the same thing. 



"Macau has a very fortunate and experienced industry," he told the Symposium on Responsible Gambling, at the University of Macau. "So we are in a much stronger position than anywhere else of the world. We should feel quite comfortable with that."

Bowie believes that the casinos in Macau will be able to adjust.

"This territory is very flexible and dynamic," said Bowie, "and we'll be able to respond to this issue. It is a matter we can manage on a day-to-day basis. We will work positively to operate within the situation we have available to us."

Complicating the control of growth are threats to the Macau market, principally from the debut of the two Singapore casinos in early 2010. With little competition at present for the cherished VIP market, Singapore could present a problem for Macau.

Although it is still unclear how Singapore is going to handle the VIP market, the sheer size of the integrated resorts being developed means that they must make a serious run at the SAR's business to be economically viable. And with a tax rate-at around 9 percent-much lower than Macau's 35 percent, the Singapore casinos should become serious players in the Asian gaming sweepstakes.

So for China to be able to manipulate the growth of Macau, it's going to have to keep a firm eye on the throttle, while at the same time tapping the brakes whenever necessary.

-Roger Gros


9. Real or Imagined?
Billion-Dollar Mixed-Use Developments in Europe

For years, the standard industry narrative went that the super-sized, Las Vegas concept of a casino resort-while admittedly a lot of fun and fine for the United States-would never float in Europe. The theory seemed to find its proof in the aborted U.K. "super-casino" fiasco and the Harrah's close-but-no-cigar attempt in Slovenia.

But in the past two years, a new crop of mega-projects that combine casino resorts with family-oriented, destination-style leisure centers has been sown in Hungary, Slovakia, Romania and of course Spain, with its ambitious Gran Scala effort. And from most reports, the projects seem to be moving forward in the areas of legislation, permits, partners and even financing. Even Harrah's is back in the picture, partnering with a developer in Slovakia. And Hard Rock International will operate one of five casinos planned for Hungary's EuroVegas.

The time could be ripe for such development. It has been 20 years since the fall of the Berlin Wall and a generation of young people in the former Eastern Bloc has come of age with casinos and other previously forbidden vices as part of the normal social fabric. To those for whom freedom means access to glitz and material excess, Las Vegas is the Promised Land. Now that this generation is grown and raising kids of their own, what better place to spend a family holiday or long weekend than at an all-weather Disney/Vegas resort?

In the West, where casinos have existed for many decades but were seen by the general public as dens of iniquity, Las Vegas has never been more than a guilty pleasure. But the relatively new concept of casino-as-entertainment-only about 30 years old in Europe-has even taken root in traditional casino jurisdictions like the U.K. and France. And with televised poker tournaments and gaming-via-computer bringing the casino into the European living room, the learning curve has been accelerated.

Given the background, combining casino gaming with an enhanced version of the European indoor waterpark, where families have vacationed for years, is not so far-fetched.

Expect more mixed-use projects across Europe as the investment climate improves.

-Rich Geller

10. The B2B Movement
The Merger of Online Operators and Land-based Casinos

While the online gaming industry remains shackled in the U.S., elsewhere in the world land-based casinos, state lottery organizations and even companies involved in non-gaming enterprises are busy making money with their own online gaming products.

Previously isolated properties like Malta's Casino di Venezia have been able to overcome geography with an online offering that includes poker dealt by live dealers. Established casino operator Rank Group in the U.K. has blended its entertainment-oriented, land-based G Casino brand with an online casino product of the same name. Even monopolists like Casinos Austria and Sweden's Svenska Spel, which operates the Cosmopol Casino group and the lottery there, have recognized the need to compete at the online level.

Major online operators like PartyGaming and 888 are moving increasingly into providing B2B service to any business looking to promote itself and generate income while doing so.

Dragonfish is the independent division within 888 responsible for B2B development. In the first nine months of 2009, operating income for the unit rose 32 percent, to $37 million, against the same period the previous year. Among major new clients is Tsogo Sun Gaming in South Africa, which operates seven casino resorts there, and casino giant Harrah's, which is creating two products for the non-U.S. market. The B2B activity helped offset some of the 19 percent drop in 888's B2C revenue, which dipped to $142 million.

In early 2009, PartyGaming completed an alliance with Spain-based CIRSA Gaming, which has land-based casinos, bingo halls, arcades and other activities in more than 70 countries. The two will develop online gaming in Spanish-speaking countries. PartyGaming has also picked up a client in U.K. broadcaster Channel 5, to create a branded bingo and casino site.

As gaming regulators become more comfortable with the medium, an online gaming product will become a standard component of the land-based casino.

-Rich Geller

By GGB Staff   Wed, Dec 09, 2009

Groundbreaking technology has been a hallmark of the gaming industry, and of its main trade show, the Global Gaming Expo. Every year since 2003, Global Gaming Business has recognized the most creative and useful of gaming's technological innovations with our annual Gaming & Technology Awards.

Earlier this year, we assembled a distinguished panel of judges and solicited nominations from across the worldwide gaming industry as candidates for the top three innovations in four separate categories-consumer service technology, productivity enhancement, slot products and table game innovations.

Our judges for the awards this year were: Claudia Winkler, president, GHI Solutions Inc.; Rob Russell, gaming analyst, Regulatory Management Counselors, P.C.; Israel Posner, executive director, Institute of Gaming Management, Richard Stockton College of New Jersey; Charles Lombardo, consultant and former vice president of slot operations for Caesars Palace and Seminole Gaming; and Peter Johns, director of slot operations, casino division for MGM Grand Macau.

At G2E, the eighth annual Gaming & Technology Awards were awarded to products and services our judges thought were the best of the year.

Taking the top spot this year as  Best Consumer Service Technology was the Tournament Manager from International Game Technology, a tool that allows instant slot tournaments with real-time scoring in a networked floor environment.

The Biometric Recognition system from Bally Technologies took the top spot as Best Productivity-Enhancement Technology. This facial-recognition tool, designed for security and surveillance, is put to use at the point of play, to enforce self-exclusion programs, or for recognition for player-tracking purposes without the use of a card.

Winning for Best Slot Product was Cash Spin by Bally, which includes a virtual wheel that can physically be spun by the player, and actually responds to the player's actions.

The award for Best Table Game Innovation goes to iTable for Specialty Games by Shuffle Master, a hybrid product that combines a live dealer with electronic player stations for betting.

"In these difficult economic times, it's clear that the technology providers to the gaming industry have not taken a breather," said GGB Publisher Roger Gros. "The quality and quantity of this year's entries surpassed any previous year, once again validating that the Gaming & Technology Awards are the 'gold standard' in the casino industry."

Here are the winners of the eighth annual Global Gaming Business Gaming & Technology Awards.

BEST CONSUMER SERVICE TECHNOLOGY

IGT  Tournament Manager with Real-Time Scoring
Bally  CoolSign Media Management
Aristocrat  Content Delivery Manager CDM

Honorable Mention
Alvin5  Mobile Gaming, Entertainment & Hospitality Solution
TCSJohnHuxley e-FX Insignia Display
 

BEST PRODUCTIVITY-ENHANCEMENT TECHNOLOGY

Bally Biometric Recognition
FutureLogic TableXchange printer/scanner
Bally Business Intelligence

Honorable Mention
Bally Live Floor View
Shuffle Master i-Verify House Way Verifier

BEST SLOT PRODUCT

Bally  Cash Spin
IGT  MegaJackpots Center Stage platform
WMS   Star Trek Episode 4: The Enterprise Incident

Honorable Mention
Bally  Reel Image Video Slot
WMS  Monopoly Grand Hotel Big Event

BEST TABLE GAME PRODUCT OR INNOVATION

Shuffle Master iTable for Specialty Games
TCSJohnHuxley  TouchTable MultiPLAY Roulette/SicBo/Craps
Cantor Gaming  eDeck Wireless Mobile gaming product

Honorable Mention
Casino Technology  Dueling Pianos
IGT  DTS-X Table

By Alan W. Zajic   Wed, Dec 09, 2009

The social importance of nightclubs has created a phenomenal demand along the Las Vegas Strip for bigger and better clubs. It also has created a new liability for casinos.

The clubs satisfy the thirst of primarily the most recent generations. If you have not been a part of the nightclub scene in recent years, the size and attitudes of nightclubs have changed. The most dramatic change that is present is the cost of going to one.

The general public who is not used to these environments still believes that they can go to a nightclub, find a seat and just have a couple of drinks, dance, and have a good time. They become quickly aware that this is not the case.

They are unaware that you must buy a bottle of liquor or a seat for sometimes hundreds, or even thousands of dollars for more private locations. They also find out that after waiting in line these venues do not provide seats for any of the thousands of customers who pay a cover charge for the privilege of entering the sometimes-sacred domain.

Alcohol management seems to have been pushed to the side in some operations, with bottles and servers selling alcohol without regard to intoxication levels or condition of guests. The selling of a full bottle of alcohol to two people who consume it in a relatively short period of time will certainly produce dangerous levels of intoxication.

The most recent series of events involving Prive' at Planet Hollywood in Las Vegas demonstrated to the gaming industry that the cash-rich business of leasing to nightclub operators is not an insulated way of creating lease revenues with minimal risks. Planet Hollywood was assessed fines that were negotiated down to $500,000 based on Nevada laws that require licensees to operate in a defined and suitable method, to include any leased operation.

Local and state regulators are also apparently monitoring how many calls to the police or emergency medical services are related to a nightclub, and are noting any increase in calls, and comparing them to other venues to determine who is really attempting to manage security and who is not.

Operator Indifference
A recent class at the UNLV International Gaming Institute on security for nightclubs and bars revealed the indifference of the independent nightclub operators, who did not attend this affordable training program. A room full of gaming security professionals participated, and only a handful of the security from independent nightclubs was visible or participatory.

An examination of trial records in Clark County, Nevada, including expert testimony in nightclub security, makes it obvious that juries do not always think nightclubs are as safe as the proprietors think they are.

Because these venues produce revenues to the local governments, the shutdown of a nightclub historically is a rare and unusual event, and assessing fines is even rarer. The occasional written warnings issued have not historically been taken seriously by the gaming property or the nightclub operator. The fines historically assessed were insignificant as compared to the revenues involved-until now.

The publicity generated by the actions of the Nevada gaming regulators in the Planet Hollywood fine and the operational issues at Prive' nightclub was a wake-up call to all gaming operations regarding the nightclubs on their properties, whether operated by the owner or leased as an independent venture. The local government initially revoked the liquor license after the state took its action.

The bottom line is if you want to protect your privileged gaming license, you need to oversee and assure leased operations are complying with local laws and ordinances, and that the operations are functioning in a professional manner to protect the public and comply with basic local regulatory mandates.

What this series of events has demonstrated is that gaming facility management and owners must have a more hands-on approach with leased operations that fall within their walls. Many executives and owners are assessing whether the operation of a nightclub is something they want to directly manage or continue to lease and manage the security within the operation. The significant revenues generated create the motivation for an acceptable solution.

The liability exposure has also changed as a result of all of this activity. The basic legal duty to reasonably protect the customers within the establishment has not changed, but the involvement of the gaming management in the security function certainly will erode the owner's insulation from liability.

Successful Outcomes
The following suggestions are provided to improve nightclub operations and to assist in managing the issues related to regulatory compliance and recent fines assessed against gaming operations in the Las Vegas area. Each facility has distinct features, design, demographics and conditions that must be evaluated in managing a nightclub operation. These suggestions are designed to guide the executive in managing security in a large nightclub venue within the walls of a gaming operation.

Lease Agreements
The lease agreements should be reviewed and renegotiated to include the operational mandates by the regulating gaming body for suitable operations. Specific language to allow unlimited and unrestricted access by the gaming licensee's security or management personnel also is important. Formal notification of nightclub-related incidents to either party should also be mandated to allow proper assessment of the operation and make changes as necessary. Some gaming facilities now require a proprietary security representative be in the nightclub any time it is in operation.

Corporate attorneys should be made fully aware of the issues and incorporate language to protect the gaming facility as much as possible, require penalties for non-compliance, and produce a separate and distinct security addendum to the master lease that can be modified and managed by the security managers without divulging other non-security-sensitive lease provisions to middle managers.

Based on the additional management and security involvement that will be present, consideration for reimbursements should be made to offset the direct and indirect expenses that will be incurred by the gaming property to monitor and oversee the security operation.

Communication
Forcing a weekly meeting between the management of the casino-hotel and the nightclub operator should address any issues and cooperative efforts between entities. Comprehensive documentation of incidents involving the operation should be maintained, along with meeting minutes to further demonstrate compliance.

Based on the recent history in nightclubs in Las Vegas, the venue should be mandated to complete specific briefings as each security officer comes on shift, and to document the briefing. These briefing logs should be forwarded to the gaming property security director for review and action if necessary.

Room Capacities
Logs from the ingress/egress location also should be monitored by the gaming facility. Room capacities can have an effect on incidents, and will demonstrate if the leased operation is managing the "door" effectively. Capacity logs for at least every hour and ideally every 30 minutes will be useful for effective analysis and making management decisions.

Door logs should also contain a brief entry of incidents and unusual activity that is not memorialized in a written report. As an example, monitoring of intoxicated females leaving a nightclub with unknown males should be documented with names and identification in this log to assist in law enforcement investigations in the event of a sexual assault. It also lets potential aggressors know their names are documented.

Formalized Security Plan
Nightclubs should present a formalized security plan, to include dealing with intoxicated patrons, no-tolerance drug policies and other management of social behaviors, to the gaming property-and should be held to the document. Careful review by qualified internal security personnel or outside licensed security consultants should be done with documentation to demonstrate emphasis on providing professional security in nightclub venues.

Procedures for dealing with common and recognized nightclub incidents should be memorialized in the policies and procedures as desired by the gaming property and the nightclub operator. Mandated background checks, minimal training requirements, comprehensive emergency procedures and alcohol management procedures should all be included in a formalized document that is approved by both sides.

Holding Rooms
In most large properties, the leased venue notifies the gaming property's security personnel whenever an arrest is made. The venue becomes involved in the detention and chain of custody by using the property holding room and security personnel. Consideration should be given to require leased operations to have their own holding room, equipped with CCTV and audio recording to minimize the property's exposure to litigation for torts committed or alleged against nightclub security personnel.

The security and surveillance departments should also have access to live and recorded CCTV surveillance of the holding room and venue, to monitor the leased nightclub's compliance to laws, regulations and procedures approved without becoming directly involved in a leased operation's incident.

Training
The need for training is evidenced by the actions being reported in various nightclubs. A formalized training program should be mandated and monitored. The nightclub security personnel should be trained in the functions that they will regularly be expected to perform.

If security personnel are to respond to fights or other incidents that a typical nightclub will experience, they should have the training to deal with it professionally. Non-violent de-escalation skills, defensive tactics, handcuffing, laws of arrest, liability, managing incidents, emergency operations, and report-writing are some of the topics that should be considered. Alcohol management training should be ongoing at the facility level, and not just every time a required alcohol card is renewed.

Outside instructors should also be considered for a well-rounded training program. Local police or regulatory personnel will typically have personnel and education programs available to train security staff in club drugs, date rape and sexual assault, prostitution, fraud and identification checks, typically free of charge. These are critical training areas that require documentation.

Background Checks
Depending on the particular jurisdiction, a full background check may or may not be conducted when club employees apply for work permits. In some jurisdictions, all employees are subjected to rigorous background investigations. In other large jurisdictions, there is what is referred to as a "one-way" background check, which is where the employee lists out any arrests or convictions and the jurisdiction merely checks to see if the employee was truthful. They do not notify the employer of criminal history, unless it is serious to them or they wish to deny the person a work permit.

Because the security personnel inside of a nightclub deal with the safety and well-being of thousands of patrons, there should be an independent background check completed by a competent employee or outside agency. Documentation of the background check also is important.

Shopping and Spotters
Use of spotters inside the nightclub is a tool that can monitor the whole program. Service, public relations and attitudes can be monitored by outside persons to help manage the venue. These spotters can also look at security employees, but they typically do not have the expertise to determine whether proper security protocols are being followed.

Creative monitoring of nightclubs can be done by security professionals on a trade-out basis, or professionals can be retained. Make sure they are licensed to perform whatever service you desire. Formal requests, in writing, for local law enforcement to come in and check the venue will go a long way in determining if you have a problem. It will also involve them in assessing your operation before you have a major problem.

Inside and Outside Review
After the nightclub and the gaming property have worked out all the details of the security plans, and have defined the methods to comply with local laws and regulations, the system will need to be checked for compliance. Internal auditors can be utilized to check the paper trail on reports and logs, as well as monitoring of the door counts for lease provisions on revenues and rent.

Consideration should be made to have a professional outside security consultant do an annual review of the entire nightclub operation. A report documenting the results will certainly go a long way in proving compliance. Mandating that the nightclub will pay for the professional security audit and report would certainly be appropriate.

Careful consideration should be made before using the property security director in this function, to assure they are well-educated on industry issues and standards of care, and that they will be able to withstand rigid scrutiny in the event of a regulatory issue.  

By Joshua Gold   Tue, Dec 08, 2009

Those in the gaming and hospitality business are exposed to a wide range of perils, from lawsuits stemming from slot machine malfunctions to food poisoning claims to catastrophic hurricane risks.

Effective risk management can mitigate these risks to a substantial degree, and also transfer the financial risk of loss and damage to insurance companies through the purchase of insurance and, in some cases, reinsurance where captive insurance companies are utilized.

It is important to keep in mind that not all insurance policies are created equal. There are huge variations in the scope (and quality) of insurance coverage that can be purchased from the insurance industry for gaming and hospitality risks-especially when it comes to so-called "first-party" property insurance.

The bad news is that that most insurance products are consumer-unfriendly, laden with pages worth of mind-bending terms, conditions, exclusions and amendments. The good news is that there are some very good forms of insurance coverage in the marketplace containing a number of special insurance coverages specifically tailored to those in the gaming and hospitality business. These types of coverage grants can help cover or at least defray the financial burden of a serious loss.

Below is a list of some key first-party insurance benefits that are uniquely suited to gaming and hospitality risks which policyholders can use as discussion points when meeting with insurance brokers, underwriters and consultants to determine their risk management needs. Set forth below is also a list of five key tips to protecting insurance coverage rights and benefits.

Insuring Gaming/Hospitality
A number of specialized insurance products have been developed by the insurance industry for those firms operating in the gaming and hospitality areas.

Time-Element Coverage for Risks On or To Premises
Insurance coverage is available to protect the profits that the gaming business would have made but for the property loss or damage at the premises. For example, some all-risk manuscript property insurance policies provide so-called "time element" insurance coverage (i.e., insurance coverage for the loss of business income where operations are interrupted) by reason of action upon casino control commission laws or regulations.

Some insurance policies also promise insurance coverage for time element losses where there is an interruption in operations due to the loss of a liquor license, infectious or contagious disease, food or drink poisoning, vermin or pests, strike, riot or civil commotion, or defective sanitation. Other insurance policy provisions may cover lost business income due to murder, suicide or rape on premises, or losses occasioned from the evacuation of the casino or hotel based upon the report or detection of an incendiary or explosive device.

Furthermore, insurance coverage may be available to insure the costs to relocate guests during a business interruption. Insurance can also be purchased to insure the costs of providing guests rebates or to cover goodwill payments and refunds as a result of a business interruption.

Time-Element Coverage for Perils Away from the Premises
There is also some very valuable insurance coverage available that protects the policyholder for loss of its business income when a peril causes harm away from the policyholder's gaming and resort premises but still affects operations. Policyholders with some of these special forms of insurance coverage have been able to secure insurance coverage where main routes used to access their premises have been damaged, where waterways become unnavigable, where airports have been shut down or where air travel has been restricted.

Some insurance forms protect against the loss of business income due to pollution of land or water within a certain proximity to the gaming or resort operations. Other forms of insurance may protect against business income losses where there is interference with the use of airports or port facilities, civil authority or military action impairing or preventing access to the policyholder's properties or consumption of goods and services.

Various forms of "contingent" business income insurance is also available. Such insurance can be purchased for off-premises perils that could damage or otherwise affect other businesses upon which the policyholder is reliant, such as conference centers, sports complexes, stadiums, exhibition halls, medical centers, convention centers and amusement parks.

Insurance coverage may also be available to cover losses of business income due to an interruption in the receipt of critical incoming services, such as electricity, gas, fuel, steam, water, and voice, data or video service. There may also be insurance coverage for the interruption of services that are outgoing, such as sewage service and, again, voice, data or video service.

Last, policyholders can also purchase insurance coverage for the loss of business income when an incendiary device is "near" the premises. However, such coverage, especially for overseas properties, is likely to get harder and more costly to purchase given several deadly international incidents of late.

Tips to Protect Yourself

1. Document and Keep Everything Involving the Insurance Purchase
The insurance industry is notoriously poor at documenting insurance coverage agreements in an accurate and timely manner. It is not uncommon for insurance policies to be delivered months after the insurance is bought and bound. Sometimes insurance policies are never furnished.

Accordingly, it is imperative to keep all insurance binders, quotes, cover notes, summaries of coverage, underwriting submissions, PowerPoints and other related documents so that evidence of the coverage exists should a claim precede delivery of the insurance policy or should the insurance policies ultimately delivered conflict with the insurance coverage purchased at the outset.

2. Calendar and Address the Time-Sensitive Provisions of the Policy
Virtually all insurance policies contain notice provisions, requiring some form of notification to the insurance company of potential claim circumstances, actual claims, demands, lawsuits, regulatory actions, bordereaus of claims and anything else that the specific policy language may call for. Insurance companies regularly deny valid insurance claims by arguing that the policyholder did not comply with the notice provisions.

Many insurance companies will argue for a forfeiture of insurance coverage based on a technical violation of the notice clause, even where there is no prejudice or adverse effect to the insurance company. As such, providing prompt notice is a priority to avoid later fights.

Similarly, many forms of insurance coverage, such as crime insurance, property insurance and food contamination insurance, routinely require the filing of proofs of loss within 60, 90 or 120 days. Rarely will a policyholder be able to comply with this deadline-especially where a complicated calculation of a business income claim is required.

As such, it is very important to negotiate, in writing, an extension of the time within which to file a proof of loss. Another approach can be to file a partial or interim proof of loss where the loss amounts are still in a state of flux or the calculation is continuing.

Also very important to calendar is any statute of limitation that might control the filing of a lawsuit against the insurance company should it refuse to provide coverage for the insurance claim. Some insurance policies, including property and crime insurance policies, may seek to limit the time within which a policyholder can bring a lawsuit to enforce its coverage to as little as 12 months from the date of the loss.

This is rarely enough time to permit the insurance claim process to unfold in the normal course. Accordingly, policyholders have to make sure not to miss these shortened suit limitation periods if they are to avoid jeopardizing even the most valid of insurance claims.

3. Purchase Time-Element Coverage Without The Traps
Despite some of the unique and beneficial insurance coverage provisions that exist as outlined earlier, care must be given to the fine print and escape hatches that are invariably incorporated into insurance policies. One issue that should be made crystal clear in the insurance policies is that there need not be a complete cessation of business for insurance coverage to be triggered.

Some insurance companies have argued in the past that unless the policyholder's business is completely shuttered, there is no business income coverage, even where an interruption may shut down 90 percent of business operations. Obviously, this is not the kind of coverage limitation a policyholder would ever want as part of its insurance program.

4. Look for Continuity of Coverage Throughout the Tower of Coverage
Because many gaming and hospitality companies are insuring large properties with high values and extensive operations, they often have to buy insurance coverage in huge, structured insurance programs with numerous different insurance companies selling parts of the overall insurance protection purchased.

It is not only important to make sure the lead or primary insurance policies have properly documented the scope of insurance protection. It is also important to make sure that the excess insurance policies conform to the primary policies and do not create gaps in insurance coverage that can end up tainting the entire insurance program. Uniformity and seamlessness of the coverage is a daunting task, but also a critical one.

5. Purchase of Offshore Insurance Products
Given needs to find "capacity" to fill large insurance programs-whether for property insurance programs, general liability coverage or D&O insurance programs-policyholders are sometimes offered insurance coverage from offshore insurance companies in Bermuda, the U.K. and Europe. Policyholders should be aware that some of these insurance products call for the arbitration of insurance claims in places like Bermuda or London with application of a choice-of-law clause that may be policyholder-unfriendly.

While there may be occasions that a policyholder has little choice in purchasing such insurance products because of issues over finding enough risk transfer "capacity" in the marketplace, ultimately, policyholders should attempt to stay clear of such clauses. Almost uniformly, such clauses are inserted to put the policyholder at a disadvantage.

Conclusion
Like with so many things, information is critical when entering the insurance marketplace. There is a vast array of insurance policies (and promises) that are not created equal. Knowing what questions to ask and what benefits to look for provides obvious advantages in securing suitable protection for the risk profile of the policyholder.

And, even once the insurance product is purchased, there is still a fair amount of work to be done to make sure that the insurance actually delivers the promised benefits when needed.

By Matt Landry   Tue, Dec 08, 2009

One of the biggest stories of 2009 has been the end of gaming in Russia. Gaming in Russia grew significantly after operations commenced in the 1990s.  The proliferation of slot halls and "street machines," in particular, caused some alarm as revenues grew significantly. As a result, the public and government officials questioned the industry.

In 2006, a bill was signed into law by President Vladimir Putin establishing four zones around the country where casino gaming would be legal-in Primorye in the far east, Altai in Siberia, on the border between the Krasnodar and Rostov regions near the Azov Sea, and in the western enclave of Kaliningrad, nestled between Lithuania and Poland.

The new legislation set capital requirements and stipulated a minimum number of tables, slot machines and revenues a casino must have in order to operate. The slot hold percentage was set at 10 percent and 18 years was set as the employment age in casinos and other gaming facilities.  

Ominously, the legislation also set a timeline under which existing operations would need to relocate to the new gaming zones or close their operations.  That deadline passed on July 1, 2009, and the government made extraordinary efforts to ensure that all gaming operations ceased.

No Growth Zones
Despite the rigid enforcement of the shutdown, no domestic or foreign operators started or even contemplated operations in the new gaming zones, as all four were in remote locations with little infrastructure or local population. The Russian casino gaming industry-which Boris Belotserkovsky, the president and CEO of machine manufacturer and distributor Unicum, estimates generated revenue between US$7 billion and US$8 billion-was shuttered in an evening.

The perception of many industry experts of the four "opportunities" is so poor that they can only deduce that policy-makers wanted to ensure that the industry was dissolved.

Currently, all legal casino gaming has ceased in the country, and gamblers are now forced to seek out alternatives.  They include illegal gaming, video lottery terminals, sports wagering, lottery tickets and foreign casinos.  Several former casino managers agree that illegal casinos have sprung up, but the extent of the proliferation is uncertain.  While these casinos could possibly offer slot machines, it is more likely that table games are the core offering.

Video lottery terminals are emerging as an alternative.  These machines exist under the existing legislation, which permits paper or other types of lottery tickets.  Belotserkovsky reports that the permissibility of these machines is debatable, and that lottery machines are not currently being sold. Unicum, however, does have an agreement with Novomatic to enter the market if favorable clarification surfaces.  Ruslotto, the public agency, does appear to be selling lottery terminals to Russian operators.

Reportedly, many of the establishments offering the lottery terminals are small operations located on the outskirts of major cities such as Moscow and St. Petersburg.  There are approximately 50 to 60 of these operations, and machines also are offered in other locations such as internet cafes.  While unconfirmed, it is likely that some slot machines are also present, competing side-by-side with lottery terminals.

Where To Now?
So what alternatives exist for casino operators? A Japanese group has considered the development of the Primorye gaming zone, located approximately 35 kilometers from the airport in the eastern outpost of Vladivostok. However, near-term development is unlikely, and pending legislation that would enable gaming in Japan could hamper marketing efforts in what would be a key feeder market.  

Others have recently looked at the Azov Sea location, but no announcements have been made, and infrastructure improvements at the location would likely require billions of dollars.  

There are also some rumors that the gaming zones could be redefined, with
the promise of increased tax revenue providing some incentive to a government that is largely dependent on oil prices.  However, with some interest in the existing zones and a reasonably strong fiscal position, little urgency or motivation exists for legislators.

Former Russian operators also started looking abroad before the July 2009 deadline.  Ritzio established operations in Ukraine and had operations in both countries shut down when Ukraine chose a similar path but with little notice.

Clive Tilley managed the Casino de Paris, located at the Korston Hotel in Moscow, and also established operations in Montenegro. While his firm's Russian operation was widely recognized for catering to an emerging middle market, he notes that attracting Russian gamblers to make gaming the main purpose of a trip is challenging.    

Mass Market, VIP Travel
The challenge lies in the former structure of the Russian market.  A number of slot parlors catered to a mass-market player. Many of these players enjoyed gaming but are unlikely to take trips abroad to game, due both to the cost and their view of gaming as entertainment. Tilley notes that while many players in Russia enjoy casino games, they are not the dedicated, avid gamblers that a destination such as Macau enjoys.

The second segment, the middle market, was a growing part of the
Casino de Paris and other casinos' clientele. While this segment could potentially travel abroad, gaming is unlikely to be the purpose of a trip (although these players may engage  on a more casual basis if they visit a destination that features gaming).  

The final segment-the former VIP gambler-has the means to play abroad if they wish.  This market was estimated by Belotserkovsky to be worth between $100 million and $300 million.  

Geoff Butler, the former manager of Corona Casino on Novy Arbat in Moscow, says these players currently seek out alternatives in London and Minsk.  While Minsk is a logical alternative given its proximity to the Russian population and cultural similarities, it should be noted that Storm International has opened a casino there under its Shangri La brand, and has successfully attracted former Russian clients to this new location. The firm formerly operated the Shangri La located in Pushkin Square in Moscow, one of the most successful casinos in Russia and a popular property for VIP gamers.

Another alternative for Russian operators would be to become junket operators and bring Russian gamblers to other casinos. While this alternative was explored in Macau and possibly other markets, the challenge lies with the nature of the Russian VIP gambler.  These players have the means to play in other jurisdictions and likely have the ability to get foreign currency needs met. The value proposition for the junket is therefore limited.

Russian operators may be challenged in terms of their expected returns. The gaming industry grew quickly in Russia and provided fantastic returns. While it turns out that these returns were commensurate with the risks, most prospective investment opportunities are not forecasted to generate similar returns.

While Tilley was able to bring some employees to the operations in Montenegro, foreign work permits are difficult to obtain and the vast majority of former employees have likely suffered. In addition to this unnecessary unemployment, one cannot help but feel that an opportunity has been missed.  

Whereas more thorough regulations developed under the context of a partnership between the Russian government and the gaming industry could have preserved the industry and even driven foreign direct investment, the alternative has resulted in lower tax revenue and higher unemployment during a challenging economic environment.

By GGB Staff   Wed, Dec 09, 2009

Pinnacle Entertainment CEO Dan Lee resigned last month, amid a firestorm of criticism that arose when he reportedly told a St. Louis County Council member that voting for a zoning change that would allow another casino in the county was the worst move of the official's career.

Pinnacle issued a statement saying only that Lee resigned "to pursue other business interests."

The statement said that Richard Goeglein will be interim chairman and John Giovenco will serve as interim CEO. Both are currently board members, and both are veteran hospitality executives-Goeglein held several positions with Holiday Corporation and Harrah's, and Giovenco was president and COO of both Sheraton Hotels Corp. and Hilton Gaming Corp.

Lee's actions at the county council meeting, meanwhile, are being investigated by the Missouri Gaming Commission.

The resignation is the latest in a series of top-level moves at Pinnacle. The company transferred the head of its New Jersey casino operations to a St. Louis property after the project, on the site of the former Sands in Atlantic City, was put on indefinite hold due to the economy. Kim Townsend will now be vice president and general manager of Lumiere Place in downtown St. Louis.

Townsend will continue to oversee the dormant Boardwalk project. In St. Louis, she will succeed Todd George, current VP and general manager at Lumiere Place. George will preside over the opening next spring of Pinnacle's new River City Casino in St. Louis County.

By GGB Staff   Wed, Dec 09, 2009

Leading slot manufacturer International Game Technology last month outlined details of its package of applications for the server-based slot floor at the Aria Resort & Casino at CityCenter, slated to open in Las Vegas this month.

Aria will feature IGT's "sbX" server-based network, which incorporates the company's award-winning Service Window, sbX Floor Manager and Media Manager, the IGT Advantage casino management system and 970 IGT AVP machines with 3D Multi-Layer Display technology.

The complete server-based solution is called "IGT DynamiX."

"MGM Mirage has always been a forward-thinking organization with respect to technology on our slot floors," said William P. McBeath, president and chief operating officer of Aria Resort & Casino. "At CityCenter, we are pleased to offer our players the customization, choices and personalized service that sbX and the Service Window provide."

According to a press release issued by IGT, the sbX system and Service Window will be available on all of IGT's machines and will be interoperable with WMS slot machines on Aria's gaming floor upon opening.

"Interoperability testing will continue with other game vendors anticipated to come on line with sbX in the future," said Rich Schneider, IGT's executive vice president of gaming products. "We will ensure other vendors can migrate their games as soon as they are able to. All of Aria's game vendors have applied a great deal of effort in preparing their game products for compliance with the industry-standard G2S protocols.

"This has required a level of cooperation and interoperability testing among the vendor community far beyond what this industry has ever experienced. We appreciate the efforts our competitors have made in working toward truly interoperable products. Along with MGM Mirage, IGT is committed to an open-protocol, fully networked floor at Aria."

"We are excited to join with CityCenter and IGT in this initial deployment of sbX," said Orrin Edidin, president of WMS Industries Inc.

Eric Tom, IGT's executive vice president of North American sales and  marketing,  added, "This 'hybrid' casino floor also demonstrates IGT's flexibility and commitment to meet our customers' requests, needs and expectations. Today's solutions must take into account the challenging economy and how to best partner with operators to help them give their players what they want in a value-oriented solution. sbX can be deployed in a scaled manner like Aria, or in sbX Tier One applications for smaller properties. Alternatively, our customers can deploy IGT DynamiX as a stand-alone and still provide their players a dynamic choice of games, and wait to deploy sbX at a later time."

The sbX Service Window provides a unique player interaction experience, right at the slot machine. When the player inserts his player's club card, a special window slides the game screen over, providing a menu of information and services that the player and operator can customize, all designed to improve the player experience. The sbX Floor Manager provides access to the IGT game library, while the sbX Media Manager enables targeted messages and services to the Service Window.

By Frank Legato   Wed, Dec 09, 2009

Manufacturer: Konami Gaming
Platform: K2V, Podium
Format: Five-reel, 20-50-line video slot
Denomination: .01, .02, .05
Max Bet: 150, 300, 600, 1,500
Top Award: 2,000 credits times line bet
Hit Frequency: Approximately 50%
Theoretical Hold: 11.84%

Konami is expanding its video library as the new "Podium" series begins next year to replace the legacy K2V video platform. Money Blast is the type of high-volatility video slot that has made Konami's video library popular around the world. The game is available in both the K2V and Podium platforms.

Money Blast, which carries a dynamite-mining theme, is a program clone of another proven performer, China Shores. This version of the program includes a new feature called "Action Stacked Symbols." Each reel contains a number of adjacent positions that are replaced on random spins with one of the 11 paying symbols, creating clusters of jackpot symbols that result in multiple wins.

There also is a wild symbol-the main miner character from the game-that substitutes for each of the 11 jackpot symbols.

The main bonus feature is a free-spin round, in which all jackpots are doubled. Three, four or five "TNT" symbols trigger eight, 10 or 15 free games, respectively. The free-spin round can be retriggered during the feature. The free-spin round occurs every 40 spins, on average.

The game is available in 20-line, 25-line or 30-line configuration, with available max bets of five, 10, 20 or 50 credits per line. It is available for progressive links as well as stand-alone placement.

By Caitlin McGarry   Wed, Dec 09, 2009

Product: GLI Link
Manufacturer: Gaming Laboratories International

Gaming Laboratories International is offering regulators and suppliers a way to do business smarter and more efficiently with GLI Link, a proprietary new technology that allows for remote interoperability testing of games and systems.

As games and systems continue to become more intertwined, interoperability is more important than ever to operators, regulators and suppliers. But before now, testing for interoperability required devices and systems to be in the same room with each other, so they could be wired together. This required devices to be shipped all over the world, which can be cumbersome, expensive and delay time to market.

GLI Link solves the problem by connecting manufacturers' products and operators' systems, expanding interoperability testing to every GLI lab. With GLI Link, interoperability testing can be performed on any game with virtually any system from any GLI lab in any time zone.

Because GLI Link operates remotely over the internet, devices no longer have to be shipped around the world, saving both time and money. With GLI Link, suppliers based anywhere in the world can test for interoperability against systems that are used in casinos around the globe.

GLI Link can operate from any GLI lab, which enables suppliers to test against specific casino configurations in their local lab and time zone. The entire process is monitored by GLI's worldwide team of experts, so if, for example, a device is in Macau and a system is in Las Vegas, GLI engineers in both labs personally monitor the test to ensure accuracy.

GLI Link is the latest in a series of proprietary tools exclusively developed and used by GLI, including GLIAccess, a web-powered database of submissions, certifications and revocations; GLI Verify, a hand-held verification tool for regulators; and GLI University, a continuing education program for regulators.

For more information about GLI Link, visit www.gaminglabs.com.

By GGB Staff   Tue, Dec 08, 2009

The state government of Sikkim, India, is taking proposals from online operators for at least three gaming licenses.

 According to The Independent, over a dozen operators are said to be vying for the licenses, which would be India's first. Familiar names like William Hill, Bwin, 888 and others are competing with local Indian operators for the privilege of potentially taking bets from India's 1.2 billion people-or at least that portion of the population that owns a computer.

Advertising and promotion would only be allowed within Sikkim, and it is thought that bets would only be 100 percent legal when taken from Sikkim residents. The state has a population of only about 600,000.

In the case of an operator taking a bet from a non-resident of Sikkim, it is not yet known whether the operator or the player, or both, would be in violation of the law.

The regulations stipulate that a foreign operator needs to have a local partner to qualify for a license. The Independent speculates that William Hill has spoken with Global Torrent International, a Sikkim company. Betting exchange Betfair is partnering with Agilisys Managed Services.

The World Cup competition in South Africa, scheduled to begin next June, is expected to spur Sikkim authorities to have online betting operators up and running by early spring.

By GGB Staff   Tue, Dec 08, 2009

The chairman of Florida's House committee on gaming predicts that the deal between the Seminole tribe and Governor Charlie Crist won't pass with lawmakers in its current form, and may not pass at all. Now, some legislators are proposing that the state authorize casino games in any counties that want them, so the entertainment is not limited to one region or one operator.

"As anti-gaming as I was, it's here, and it's not going away," said Rep. Ellyn Bogdanoff, a Fort Lauderdale Republican, speaking to the South Florida Sun-Sentinel. "You go to Plan B, which is free market."

Crist's compact would expand banked card games to all seven Seminole casinos. The legislature originally wanted to limit the games to tribal casinos in Broward and Hillsborough counties.

"I can't predict where we'll go," said House Gaming Chairman Bill Galvano, a Bradenton Republican. "I will predict on the success of ratification of the proposed compact-which I think is not going to pass. But where it goes from there is up to members."

Some legislators have feared granting broad new gaming options to the Seminoles could hurt the existing parimutuel industry, and also limit the state's ability to expand gaming elsewhere in the state.

"We have gambling facilities all around this state that have been in business since the 1930s," said Dan Adkins of Mardi Gras Gaming. "Why not allow them the opportunity to compete and provide revenue for the state? New jobs, more revenue, far and away more money than the tribe can ever provide."

According to the Jacksonville Observer, Adkins' assertion doesn't jibe with economist Amy Baker, who said the Crist deal would bring in about $9 million more to the state, an estimated $811.7 million by fiscal year 2013, versus $802 million if the legislature's version is enacted.

Crist first struck a deal with the tribe in 2007, but that agreement was shot down in 2008 by the state Supreme Court, which ruled the governor had no authority to sign a compact without consulting the legislature. 

By GGB Staff   Tue, Dec 08, 2009

The Australian national government's Productivity Commission has completed its draft report on the state of legal gambling within the country. The 630-page report addresses what it considers to be the most important aspects of gambling as it affects the society and suggests measures to mitigate any negative impact.

The new document gives an update on the 1999 Productivity Commission report on gambling, and includes new research on what Assistant Treasurer and Minister for Competition Policy and Consumer Affairs Chris Bowen, who requested the report, called "harm minimization measures."

The report gives a lot of attention to slot machines, which it says account for 65.1 percent of the country's A$18.2 billion "official" gaming industry. Machines in clubs and hotels provide 58.2
percent, with casino slots contributing only
6.9 percent.

Of the 5 percent of adults who are said to play slots on at least a weekly basis, 15 percent are classified as problem gamblers. This relatively small group is said to be responsible for somewhere between 20 percent and 60 percent of total gaming machine spend, depending on whose estimate is used.

Citing an example where a gaming machine with a A$10 maximum bet can allow losses of up to A$1,200 an hour, the report suggests lowering the maximum bet per game to A$1 for a resulting maximum loss of A$120 an hour. Limiting to A$20 the amount of cash a player could put into a machine at one time is another recommendation.

Longer shutdown periods for venues are also seen as potentially beneficial to problem gamblers.

ATM placement and limits are also explored in the report, with the conclusion that removal of ATMs from gaming venues could create a whole new set of problems. The commission suggests that action await a future evaluation of the situation in Victoria, which will soon implement just such a ban on ATMs.

One area in which the commission feels the nation could benefit from a degree of liberalization is online gaming. With annual spend estimated at A$790 million-not included in the official A$18.2 billion-online gaming is only being provided by offshore operators. The report suggests that allowing Australians regulated access to online gaming, together with the use of technological tools, would reduce player risk by adding harm minimization features and game integrity.

The final report of the commission is due February 26, 2010.

By GGB Staff   Tue, Dec 08, 2009

It's official: The IPO for the Macau operations of Las Vegas Sands will be taken up by the Hong Kong stock exchange. The company hopes to raise up to $3.83 billion as a result of the offering.

Soon after the details of the IPO were released, the Wall Street Journal reported that the company will resume construction on parcels 5 and 6 on the Cotai Strip. In the filing, Las Vegas Sands said it will use the revenue to buy down part of its $11 billion in debt and re-start construction on the remainder of its Cotai Strip project across from the Venetian and the Four Seasons in Macau. Construction has been halted on the St. Regis, Shangri-la and Sheraton hotels, along with three more casinos and retail space since late last year when the company was struggling to repay debt.

The planned offering by LVS comes a few weeks after a similar offering from Wynn Resorts for a portion of its Macau operations. Wynn netted more than $1.6 billion, but has not indicated how it plans to use the money. MGM Mirage has also indicated it is considering an IPO for its Macau operations, which it runs in partnership with businesswoman Pansy Ho.

In a report accompanying the IPO, Las Vegas Sands projects 2009 adjusted EBITDAR of $803 million. Net revenue in 2008 for Las Vegas Sands in Macau was $3.053 billion and adjusted EBITDAR was $686 million, up 55.3 percent and 33.4 percent, respectively, from 2007.

Also on the Cotai Strip, Galaxy Entertainment said it will re-start construction on its GalaxyWorld development, adjacent to the LVS' Venetian Macao. Construction on the 5.9 million-square-foot facility had slowed to a crawl in the last year as the Macau gaming economy slumped.

By GGB Staff   Tue, Dec 08, 2009

A plan to build a 500-room hotel casino and state-of-the-art racetrack in Ireland has been proposed by Richard Quirke, who together with a group of investors is ready to fund the €460 million project.

A replica of the White House-yes, that White House-will be at the heart of the project.

The Sunday Independent reports that Quirke said, "I intend to put my monies into this. I wouldn't leave them in a bank or institution and you can understand the reasons why. I would commit everything. I would put all of my cards on the table on this one."

Ireland is in the process of revamping its gaming legislation, which at the moment excludes casinos.

Quirke has already spent €30 million on land, planning and work that has already been performed on-site. The funding is not all there yet and neither is the planning permission for the hotel and other facilities. However, the local racing crowd is said to be optimistic.

"They will have the money, they want no grants and everything is meticulously planned and organized," said trainer Tom Hogan. "I'd say everybody would be behind it in Tipperary. The only thing is if something like a rare snail in the field could stop it."

Barring that rare snail, the development will include a 15,000-seat, below-ground entertainment venue with a retractable roof, an 18-hole golf course, a helicopter landing pad and a chapel. The racing facility will have a jumps track, a sprint track, the ability to handle greyhounds as well, and the country's second flood-lit, all-weather course. The grandstand will hold 7,000 spectators.

Local legislator Michael Lowry is backing the project, according to the Independent.

The construction of the 800-acre facility would employ 1,000 workers. The facilities when up and running would employ 2,000. The estimated time to completion is three years from start.

By GGB Staff   Tue, Dec 08, 2009

Issue 3, the constitutional amendment that authorizes four casinos in Ohio's largest cities-Cincinnati, Cleveland, Columbus and Toledo-passed narrowly last month, 53 percent to 47 percent. Voter turnout was 40 percent and over 3 million votes were cast.

It won by large majorities in Cleveland and Cincinnati, a smaller majority in Toledo, and didn't pass in Franklin County, which includes Columbus. It also failed to pass in many rural counties.

It took five elections over 20 years for gaming proponents to overcome the basic conservative nature of this Bible Belt state. What did it was the economy and the state's 10 percent unemployment, among the highest in the country.

Now, political leaders who were bypassed by the process must decide if they will accept being sidelined, or if they will try to take control legislatively or challenge Issue 3 in court.

The immediate winners are Penn National Gaming and Cleveland Cavaliers owner Dan Gilbert, principals of Ohio Jobs & Growth Committee, who will each get the right to own and operate two casinos. If the casinos create the promised 40,000 jobs, those potential employees are also winners. Lakes Entertainment has the rights to buy 10 percent of the four casinos in return for paying a 10th of the costs for the initiative.

If building begins late next year, the casinos could be operating by 2012, say Penn and Gilbert. Each will be allowed up to 5,000 slot machines. A minimum investment of $250 million is required for each casino.

The immediate loser is MTR Gaming Inc., which largely funded the opposition, and which owns racinos in Pennsylvania and West Virginia that will probably be affected once the four casinos are operational.

Another loser is Governor Ted Strickland, although he didn't campaign strenuously against Issue 3. Earlier this year his executive order set in motion a plan to deploy 17,500 slots in the state's racetracks to raise nearly $900 million to plug a shortfall in the state budget. That plan was sidetracked for at least a year by a state Supreme Court decision, but the election results probably put the final stake in its heart.

By GGB Staff   Wed, Dec 09, 2009

Leonard Steinberg, founder of Stanley Leisure and executive chairman of Electronic Game Card, Inc., died suddenly of a heart attack November 2.

Steinberg, Baron of Belfast, founded Stanley Leisure in 1958 with one betting shop. The company ultimately became the largest gaming operator in the United Kingdom with more than 600 shops.

Steinberg was a philanthropist, having founded the Steinberg Family Charitable Trust, and was also an active member of the House of Lords in the U.K.

Electronic Game Card CEO Kevin Donovan and board member Eugene Christiansen will serve jointly in the interim Office of the Chairman while the company contemplates its next move.

"Leonard's passing gives me much pain and sadness and a tremendous sense of loss for his family, many friends and colleagues," Donovan said. "All who knew Leonard greatly admired his wisdom, support and personal approach to relationships... While we are all deeply saddened with his passing, management, the board and company consultants will continue to work hard to take this company to the next level, and are accelerating our commitment to growth to honor this great man and the faith he had in us and the future of the company."

By GGB Staff   Wed, Dec 09, 2009

Radical Blue Gaming, a developer of software applications for the Gaming Standards Association's protocols, is offering free copies of its tools to casinos and other interested parties that want to better understand the potential of the Game to System, or G2S protocol.

This offer includes student versions of Radical Blue's G2S host simulator (RGS), EGM simulator (RST), and Protocol Analyzer (RPA)-all designed to help users learn about G2S before it arrives in the casino. Developed for the G2S Certified Engineer courses offered by GSA University, the student versions are functionally identical to the production versions, except the tools communicate only with each other.

For information on obtaining complimentary student licenses, go to the Radical Blue website (www.radblue.com) or contact Russ Ristine (russ@radblue.com). Product demonstrations for RPA and RST can be found at www.radblue.com/demos/demos.htm.

"We are very excited that RadBlue is offering free student versions of these tool kits," said GSA President Peter DeRaedt. "Our members have been working very hard for the past three years to develop and perfect the G2S protocol, and the result is nothing less than astounding. Now, with these student versions of the tool kits, developers and other users can become more familiar with G2S and the incredible potential it holds."

"With nearly 2,000 copies of our products in use by developers, casinos and test labs, RadBlue's tools have become the reference implementation for GSA's protocols," added RadBlue Vice President Russ Ristine. "We've worked closely with GSA on the development and deployment of G2S, and believe that now is the perfect time to make our products available to casinos and others, so they can experience the amazing capabilities of G2S firsthand."

GSA's G2S protocol was named "Best Productivity-Enhancement Technology" last year by Global Gaming Business magazine.

By Caitlin McGarry   Wed, Dec 09, 2009

Product: M3t Vault
Manufacturer: M3 Technology Solutions

At this year's G2E, M3 Technology Solutions, LLC unveiled the first cash management system that provides casino management a full view of all financial activity on one or more properties in real time.

Casino management can see in seconds the $1, $5, $10, etc. bills in all vaults, mini-banks, point-of-sale stations, ticket redemption kiosks and ATMs at any one of an operator's properties around the world. With a powerful deposit estimator and configurable reporting features that guide casinos through crucial management decisions, the Vault minimizes idle cash inventory, paving the way for increased investment capital and more efficient management of personnel.

Other benefits include analytical reporting features and enhanced security attributes, along with total integration of all automated cash processing equipment.

"We know in this economy operators are looking for cost savings," says Kent Bowden, M3t's president. "The Vault helps management more closely view daily transactions, providing up to 20 percent more funds for investment opportunities."

M3t is unique in the gaming technology sector because it doesn't manufacture games, but focuses solely on casino management systems technology. The Oklahoma-based company launched the industry's first slot accounting system/server-to-server hybrid ticket server in 2001.

Since then, it has been refining the Vault product through research, development and a continual assessment of customer needs.

"The Vault is really a response to our customers," Bowden says. "They've told us what could help them operate more efficiently and that they don't want to be tied to a vendor-centric model.

"Based on this feedback, our research and development department created Vault. It will continue to evolve with the ever-changing dynamic on the casino floor, with the final objective being to improve the player experience."

For the Vault, M3t has partnered with Datatrend, an IBM preferred partner, to offer operators an integrated casino management system that can lead to faster deployment and realization of value, instead of the typical, time-intensive mix-and-match software and hardware approach.  

The M3t Vault offers the benefits of IBM's industry-leading server technology with Datatrend's integration, deployment and implementation experience. The result is a simple-yet-scalable, cost-effective cash management solution.  

For more information about the Vault, visit www.m3ts.com.

By GGB Staff   Wed, Dec 09, 2009

A plan to build a 500-room hotel casino and state-of-the-art racetrack in Ireland has been proposed by Richard Quirke, who together with a group of investors is ready to fund the €460 million project.

A replica of the White House-yes, that White House-will be at the heart of the project.

The Sunday Independent reports that Quirke said, "I intend to put my monies into this. I wouldn't leave them in a bank or institution and you can understand the reasons why. I would commit everything. I would put all of my cards on the table on this one."

Ireland is in the process of revamping its gaming legislation, which at the moment excludes casinos.

Quirke has already spent €30 million on land, planning and work that has already been performed on-site. The funding is not all there yet and neither is the planning permission for the hotel and other facilities. However, the local racing crowd is said to be optimistic.

"They will have the money, they want no grants and everything is meticulously planned and organized," said trainer Tom Hogan. "I'd say everybody would be behind it in Tipperary. The only thing is if something like a rare snail in the field could stop it."

Barring that rare snail, the development will include a 15,000-seat, below-ground entertainment venue with a retractable roof, an 18-hole golf course, a helicopter landing pad and a chapel. The racing facility will have a jumps track, a sprint track, the ability to handle greyhounds as well, and the country's second flood-lit, all-weather course. The grandstand will hold 7,000 spectators.

Local legislator Michael Lowry is backing the project, according to the Independent.

The construction of the 800-acre facility would employ 1,000 workers. The facilities when up and running would employ 2,000. The estimated time to completion is three years from start.

By GGB Staff   Tue, Dec 08, 2009

Legalizing online gambling is a winner, according to its supporters, because it could raise badly needed money to help fund major government initiatives, including health care reform.

Although the numbers are sketchy and the taxation rate and process uncertain, some are saying that up to $42 million can be raised by online wagering.

A Joint Committee on Taxation analysis released last month by U.S. Rep. Jim McDermott (D-Washington) found that regulating internet gambling, as proposed in pending legislation introduced by McDermott and Rep. Barney Frank (D-Massachusetts), would generate nearly $42 billion over 10 years.

The analysis is based on the provision of a federal license for operators that would allow them to offer online gambling throughout the United States, while maintaining existing federal prohibitions on any form of sports betting.

While the leadership of the House hasn't indicated whether they will support the bill, McDermott expects this report to be noted and appreciated. More than 50 congressmen have signed on to co-sponsor his bill already.

By GGB Staff   Tue, Dec 08, 2009

It was a big week for Native Americans in Washington, D.C., last month.

The National Congress of American Indians debuted the Embassy of Tribal Nations (r.).

Also, hundreds of tribal leaders gathered at the White House for a meeting with the Obama administration during the first week of November, a promise made by the candidate during the campaign last fall. Most Native American leaders supported the Democratic candidate for election.

"Indian Country has been waiting for well over a decade for a meeting of this caliber with the President of the United States," said Jefferson Keel, the president of the National Congress of American Indians. "I commend President Obama for setting this precedent for his administration's nation-to-nation working relationship with tribes. We have an ambitious agenda to strengthen economic development and improve tribal government services."

By GGB Staff   Tue, Dec 08, 2009

The government of Uruguay received proposals from 15 different groups on the opening day of its anticipated mega-tender for hotel-casino projects last month. The projects combined represent an investment of $80 million.

A total of 29 opportunities are available for developers looking to build a hotel with casino and then rent the gaming space to the government operator.

Proposals received were for the towns of Paysandu, Maldonado, Colonia, Durazno, Florida, Soriano, Rocha, Cerro Largo and Artigas, reports news source El Pais.

Fernando Nopitsch, director of casinos for the ministry of economy, said a commission composed of members of the economy and tourism departments and commissioners of the target regions will choose the winning bids.

The winners are expected to be named by March 1, 2010.

By GGB Staff   Tue, Dec 08, 2009

Even though the Chinese government decided to re-impose visa restrictions on visits to Macau from neighboring provinces, gaming revenues in October soared to record levels. The city's 30 casinos posted gross gaming revenues of US$1.59 billion (MOP12.7 billion), up 42 percent from October 2008, and 17.6 percent higher than September.

October included China's Golden Week holiday, which varies in length each year. The eight days of 2009 were the longest in recent memory.

Stanley Ho's SJM, owning the lion's share of the casinos, posted the largest market share of more than 30 percent. Las Vegas Sands market share increased along with its revenue. Gross gaming revenue for the three LVS properties increased 41.4 percent to MOP3.05 billion, while its market share rose to 24.2 percent from 19.7 percent. Wynn Macau market share dropped from 13.8 percent to 12.3 percent, with revenues increasing by less than 1 percent.

Some analysts believe that the record revenues in October will cause the Chinese government to tighten the supply so growth is measured and controlled. China has been very clear in demonstrating its desire for continued social and financial stability.

By GGB Staff   Tue, Dec 08, 2009

A Rhode Island slot parlor has proposed an agreement in U.S. Bankruptcy Court to end greyhound racing at the facility. UTGR Inc., owner of the Twin River casino, has agreed to pay the Rhode Island Greyhound Owners Association $2 million to end racing if its financial restructuring plan is approved by a federal judge. The greyhound owners would receive an additional $3 million if Twin River successfully emerges from bankruptcy.  

In a court filing last week, UTGR said the two entities reached a "consensual agreement" to end their contract. Patti Doyle, a spokeswoman for Twin River, said the deal, if approved, "completes a key step towards enhanced financial viability of the facility, helping to preserve key revenue for the state of Rhode Island."

Twin River filed for bankruptcy in June, blaming its financial woes in part on the greyhound contract, which cost more than $9 million a year.

In a statement, a spokeswoman for the Greyhound Owners Association said the group had little choice but to accept the buyout.

A U.S. Bankruptcy Court judge will review the settlement on November 17, but even if he approves it, state law still requires that Twin River hold at least 125 days of greyhound racing a year. Governor Don Carcieri, who helped negotiate the bankruptcy plan, asked state lawmakers to repeal the law forcing Twin River to offer racing. In response, the General Assembly passed a law expanding the racing season to 200 days. Republican Carcieri vetoed the legislation, but Democratic legislative leaders have said they will try to override his veto.

By GGB Staff   Wed, Dec 09, 2009

Mashantucket Pequot Council Treasurer Rodney Butler has been picked to be chairman of the Mashantucket Pequot Tribal Nation, after winning his third term on the council. Butler's election comes amid great financial challenges for the owners of Foxwoods Resort Casino and MGM Grand in Connecticut. The Mashantucket Pequots recently announced a plan to restructure $2 billion in debt. 

"These are challenging times on a number of fronts," Butler said in a statement. "But throughout history, our nation has encountered many challenges and has always emerged on the other side brighter, stronger and more independent than before."

His three-year council term begins January 1. 

By Frank Legato   Wed, Dec 09, 2009

Slot manufacturer Bally Technologies announced that a federal court has ruled in Bally's favor in an appeal of a patent-infringement lawsuit filed by rival slot-maker International Game Technology over the use of wheel-style bonus games and 'iVIEW," Bally's interactive service window for networked gaming applications.

In a one-word order, the U.S. Court of Appeals for the Federal Circuit affirmed a Nevada federal district court's decision that certain of Bally's wheel-based bonus slots and iVIEW products do not infringe IGT's patents, or that IGT's patents were invalid, or both. The appeals court affirmed the lower court's decision in all respects.

"We are gratified by the court's decision," said Bally Chief Executive Officer Richard Haddrill. "It validates our approach to innovation and our respect for the intellectual property of others."

The appellate court's decision disposes of IGT's entire case against Bally, leaving only Bally's antitrust claims against IGT for trial.

By GGB Staff   Tue, Dec 08, 2009

The Kentucky Supreme Court began hearing arguments last month from the state's attorneys and representatives of 141 internet gambling websites over the state's seizure of domain names that allowed Kentucky residents to access online gaming.

According to Kentucky, domain names are illegal gambling devices, like slot machines, and if they are operated within the state's borders, they are subject to seizure. The gambling websites, such as Full Tilt Poker and Ultimate Bet, claim that Kentucky has no law against internet gambling, and as the sites are based offshore, Kentucky has no jurisdiction over them.

The state's attorney, Eric Lycan, told the court that the state had to seize the domain names because it was the only method of forcing the sites' owners to step forward.

Interactive Media Entertainment and Gaming Association attorney John Fleischaker said no crime has occurred, and therefore prosecution does not make sense.

"It shows their intellectual dishonesty," Fleischaker said. "We've made no violation of the criminal code whatsoever. They made up a process that is totally lacking in due process."

The case proceeded to the Supreme Court after the Court of Appeals ruled that the state has no authority over companies based outside the state or country.

A decision in the case may take months.

By GGB Staff   Tue, Dec 08, 2009

Although Stanley Ho is noted for his domination over the gaming market in Macau, it is often forgotten that his Portuguese subsidiary, Estoril Sol, operates Europe's largest casino, Casino de Estoril in Lisbon.

Mário Assis Ferreira, director of Estoril Sol, says the intent all along was to expand the reach of Ho's casino ownership and management. In fact, the company already operates or intends to seek casinos in Mozambique, Brazil and Spain. The company is setting up casinos in several other countries, including Guinea Bissau, East Timor and Cape Verde.

In Angola, Ho is in partnership with Isabel dos Santos, the daughter of the nation's president, Jose Eduardo dos Santos. According to the Africa Monitor newsletter, Ho and dos Santos have taken over the concession to operate the casino in the new five-star Hotel Intercontinental, currently nearing completion. The Monitor says the two received the concession after the previous designee, Plurijogos, lost the license. The hotel complex is being built by a consortium between Sonangol and the Suninvest Group.

Ho and dos Santos are also said to have acquired the rights to a casino at the planned Gika Complex in Luanda that had previously been promised to Plurijogos.

By GGB Staff   Tue, Dec 08, 2009

Since it's not exactly close to any major population center, developers of a casino project in Inner Mongolia plan to develop an entire community. 

"China Vegas: The New World Resort City" will be home to as many as 5 million people if developer China Holdings, Inc. of Beijing comes through on all its plans. The project will be developed on a 100-square-kilometer plot and will include everything you might find in a major city: commercial buildings, office buildings, residential development, shopping centers, casinos, golf courses, horse-racing facilities and recreation and entertainment facilities. Five-star hotels and themed casinos linked by skyways will be part of the entertainment complex.

But even if the residents don't move in right away, the developers say Beijing is close enough to provide customers: 45 minutes by air or four to five hours by train.

China Holdings last month announced it has hired one of the largest planning and architecture firms in the world, Perkins Eastman of New York.

"We are honored to contract Perkins Eastman and its specialists team to provide architect and planning services to our (project) in Inner Mongolia," said Julianna Lu, the chairwoman and founder of China Holdings, Inc. "We are creating one of the most magnificent new cities in China and the world, and we are creating a world event, a world new resort city in China which will grow in the next 10 to 20 years as spectacular opportunities and contributions to China, the world and the world economy."

By GGB Staff   Tue, Dec 08, 2009

If those folks are gonna lose their money, they might as well lose it in Chicago," commented a Windy City alderman last month, talking about the possibility of a casino there.

City Council Finance Committee Chairman Edward M. Burke told the Chicago Sun Times last month that he saw a lot money being spent in casinos in Indiana, and after hearing Mayor Richard Daley talking about the need for new revenue, likes the idea of one in his town.

Jerry Roper, president of the Chicagoland Chamber of Commerce, supports a casino in the downtown area, near the big hotels and theaters.

The mayor, whose statements in favor of a city casino have been tempered by statements against it, notes that the city can't allow a casino until the state legislature authorizes it.

He added, "You can't just pluck it anyplace. A lot of these places, if you look at them, the people just go there and leave. A lot of it, there's no economic increase for anybody around that place. It's like isolation."

Daley also prefers that the casino be government-owned.

By GGB Staff   Wed, Dec 09, 2009

Bill Murphy, president of Gulfstream Park racetrack in Hallandale Beach, Florida, resigned November 1. As of press time, no reason had been given for his abrupt departure.

Murphy joined the company in June 2006 as a vice president in charge of racing. He rose to president and general manager in January 2007, just before the facility added slot machines.

In the wake of his resignation, Murphy, who has described himself as "more of a horse guy than a casino guy," released a statement thanking "an incredible staff and the greatest horsemen and jockeys in the world."

Magna Entertainment, Gulfstream Park's parent company, declared bankruptcy in March and is selling off pieces of the company. The Wall Street Journal reported that creditors could push for an auction of the racino early next year.

By GGB Staff   Wed, Dec 09, 2009

Currency handling equipment supplier JCM Global announced two major contracts last month.

The supplier announced that it has renewed an exclusive agreement to provide its bill-validation, drop-box and other equipment to eight properties owned by Ameristar Casinos. The five-year renewal applies to Ameristar properties in Colorado, Iowa, Indiana, Mississippi, Missouri and Nevada.

"We are excited to be continuing our relationship with Ameristar," said Mark Henderson, JCM vice president of global sales. "Ameristar is a forward-looking company managed by knowledgeable executives who understand the industry and the needs of their clients."

JCM also announced that the Cannery Casino & Hotel in North Las Vegas has converted its slot floor to exclusive use of the company's "Intelligent Cash Box," or ICB, a computerized cash drop-box that provides real-time information to the back of the house on the float of cash in the casino's slot machines. The operator's Eastside Cannery Casino debuted last year with all slots using the ICB and JCM's award-winning Universal Bill Acceptor (UBA).

"We considered many products, and we chose UBA and ICB for the Eastside Cannery based on the performance of the equipment and very positive comments from other JCM ICB customers," said Joe Glowacki, Cannery Resorts' director of slot technical operations. "Since then, we have been so happy with ICB and the capab

By GGB Staff   Tue, Dec 08, 2009

Betting and gaming firm Ladbrokes has completed the relocation of its sports book from the U.K. to Gibraltar two months earlier than scheduled.

The move will save Ladbrokes from having to pay certain U.K. taxes, specifically the 10 percent tax of profits on British horse racing, a 15 percent tax on gross profits and another 15 percent value-added tax on input costs.

Ladbrokes will still pay the U.K. corporation tax on profits from its Ladbrokes.com sportsbook.

Christopher Bell, CEO of Ladbrokes plc, said in a statement, "Competing from the U.K. against offshore operators with significant tax advantages was unsustainable, and we are very pleased that, having made the decision to relocate, we are doing so ahead of schedule. We have used the opportunity to invest in improved technology, and in the weeks ahead we will be launching our very latest sports book that further improves our competitive position."

The new website Bell refers to is expected to offer improved navigation, fast access to more sports betting opportunities and enhanced live video streaming. The site will allow users to personalize certain features. Ladbrokes also plans a number of promotions, including enhanced pricing and improved customer recruitment offers.

Ladbrokes plc took in bets totaling £16 billion in 2008. 

By GGB Staff   Tue, Dec 08, 2009

A Northern California county that has strongly opposed a proposed Indian casino and resort flipped its opposition to support last month.

Contra Costa County supervisors voted on a tentative agreement with the Guidiville Band of Pomo Indians to support that tribe's proposal for a $1.5 billion casino and resort at Point Molate, an old Navy fueling station that the city of Richmond has acquired, and wants to develop.

The agreement, besides paying the county $12 million annually, would also guarantee that the lion's share of jobs would go to local residents.

The county's approval is probably the least of the Upstream Point Molate project's many hurdles to bring to life the vision of a 124,000-square-foot casino, two hotels, retail shopping, a conference center and over 300 residential units.

The county recently had to cut its budget by $150 million. The city of Richmond already has a deal with the tribe to be paid $20 million annually. Some longtime opponents of the casino called the supervisors' action a "sell-out."

Jim Levine, one of the principals of Upstream, which will develop the project for the tribe, commented, "Obviously, if you have local support things go smoother."

If this project goes forward it will make it harder to plug the dike to keep other Northern California tribes, such as the Lytton Band of Pomo Indians and the Scotts Valley Band of Pomo Indians, from joining the flow. The county is already in talks with the Scotts tribe.

The county had spent $1 million to fight the project, including hiring an archeologist to try to poke holes in the Guidevilles' claims to having historic ties to the area. It has dropped that objection.

The federal approval for Point Molate and related projects could become more likely if the Obama administration were to reverse a policy that was adopted two years ago under the Bush administration that made it more difficult for tribes to engage in what critics call "reservation shopping," i.e. finding land many miles from the tribe's reservation and applying to have it made reservation land.

By GGB Staff   Tue, Dec 08, 2009

Shares of Malaysia's Genting Berhad soared last month when the company confirmed that its Singapore casino resort will open in January 2010.

The race to be the first to open in Singapore has been neck-and-neck between Genting and Las Vegas Sands, whose Marina Bay Sands has been slated to open in the first quarter of 2010.

The January opening will allow Resorts World to capitalize on the Chinese New Year, often the most active time for Asian gamblers. 

By GGB Staff   Tue, Dec 08, 2009

Italy has chugged along for years with its four licensed casinos while outside developers sought a way into the market. Now a government minister wants to see more casinos, especially in the south.

Tourism Minister Vittoria Brambilla would like to see new casinos in Italy, in five-star hotels and elsewhere, according to an article from Reuters.

The agency quotes the minister's spokeswoman as saying that part of the idea is to give support to the tourism industry in the country's southern regions. All four of Italy's existing casinos are in the north.

A former casino in Taormina, Sicily, would be one property put forward for reopening. Local authorities would have to give the OK to open casinos in hotels.

The wording of the minister's proposal to the government was being worked on in the final week of October.

By GGB Staff   Wed, Dec 09, 2009

Joe Wright, CEO of lottery industry giant Scientific Games, is retiring at the end of the year. He will be replaced by President and COO Mike Chambrello.

Wright has been on Scientific Games' board of directors since 2004, and became CEO in January of this year after A. Lorne Weil stepped down from the post to become chairman of the company. Wright will remain on the board of directors.

Chambrello and new Vice Chairman David L. Kennedy have both joined the board of directors. Chambrello, Kennedy, Weil and CFO Jeffrey Lipkin will comprise the company's new Office of the Chairman, which will provide advice and expertise to the company.

By GGB Staff   Wed, Dec 09, 2009

The systems division of slot manufacturer Atronic has secured a contract to provide a comprehensive range of systems solutions to three casinos owned by Theros International Gaming and Vivere Entertainment Group in Greece.

In total, more than 800 gaming machines at the Rio, Xanthi and Corfu casinos in Greece will be equipped with Atronic's Crystal Web platform, the acclaimed, machine-independent platform boasting the first Ethernet-to-machine network worldwide.

The contract includes equipping 311 machines at Casino Rio (near Patras), 178 machines at Casino Xanthi, and 311 machines at Casino Corfu, which will be operated soon. It includes the StarSlots, StarJackpots and StarMarketing modules, as well as its "chip cash" cashless solution.

Meanwhile, Atronic Systems, the Austria-based system subsidiary of Atronic, has signed an agreement with cash-handling system supplier ecash Technologies, under which Atronic will distribute the ecash Cash Redemption Terminal, or CRT, in European, Latin American and South African gaming markets.

The ecash CRT is compatible with Atronic's "qpon cash" electronic fund slot payment systems, as well as major ticket-in/ticket out systems. The CRT will be made compatible with Atronic's "chip cash" smart card solution in the near future, according to the company.

The Atronic ecash terminal is a fully automated ticket redemption solution incorporating bar-coded tickets. A user-friendly note-breaking operation via large color touch-screen enables quick operation, minimizing lines.

The terminal also offers remote monitoring software, which allows casino management to monitor the CRT performance and cash levels live on the casino floor. The system can automatically alert casino service staff in the event that a warning status appears on the RMS, reducing CRT downtime and minimizing labor input.

By GGB Staff   Tue, Dec 08, 2009

The Polish government wants to remove all non-casino slot machines from operation over a five-year period.

According to the Warsaw Business Journal, there are more than 50,000 slots located in bars, stores and other locations around the country. Prime Minister Donald Tusk said the plan is to reduce that number by at least 10,000 machines each year.

The first step will be to raise the monthly fee for each machine from the current €180 to €480.

The Warsaw Voice reports that applications for machine license renewals will be denied, adding to the attrition.

The new legislation being drafted also sets out to ban online gaming by allowing the government to monitor connections between Polish ISPs and online gaming websites and payment facilitators.

New concessions for casinos and new and higher gaming taxes are also being proposed, as well as a ban on advertising that promotes gambling.

It will be illegal for people under 18 to gamble.

By GGB Staff   Wed, Dec 09, 2009

Gaming Partners International Corporation announced that Arizona's Gila River Gaming Enterprises contracted the supplier to provide all table games and casino chips to its new Wild Horse Pass Hotel & Casino in Phoenix, Arizona, which opened October 30.

GPI supplied Wild Horse Pass, the third casino enterprise of the Gila River Indian Community, with all of its 71 table games. The hand-crafted gaming tables are custom-built for the property and feature unique lighting elements and a mosaic tile design.

The casino chips are from the company's popular Paulson line of chips, and include proprietary design and security features unique to the casino.

"Having worked closely with Gila River Gaming Enterprises on its original Wild Horse Pass Casino as well as its other casino properties, we were thrilled to be chosen to supply the gaming tables and equipment for their newest facility," said Greg Gronau, president and CEO of GPI. "The Wild Horse Pass Hotel & Casino is an exciting new project in the Phoenix area and we were proud being a part of their successful opening."

By GGB Staff   Wed, Dec 09, 2009

The smaller gaming manufacturing companies endured a tough time late in 2008 when investors turned away from all gaming companies. Shuffle Master Gaming, the leading supplier to the table-game segment of the casino floor, acted quickly to allay investors' fears over the prospects for that company. The board hired Tim Parrott, most recently president of Aristocrat's American division, and previously chairman of casino operator Boomtown Resorts prior to its merger with Pinnacle Entertainment. Parrott righted the ship, concentrating on customer service and cost initiatives that have created one of the most dynamic companies in the manufacturing sector. He spoke with Global Gaming Business Publisher Roger Gros at the Shuffle Master offices in Las Vegas in October. To hear the full interview in a recorded podcast, visit
www.ggbnews.com/podcasts.

GGB: You've been with Shuffle Master now for more than six months and the changes have been remarkable. Can you explain what you found when you came here, and what were the most immediate tasks that needed to be completed?
Parrott: I had known the company before, both as a competitor and as a customer. What I found
wasn't much different from what I knew before I came aboard. It was a great company with a great suite of products and a lot of depth. What I didn't realize was that there was a wonderful group of very talented employees who were very open to change and wanted to take the company to the next level.

I also found a need to focus on a number of things. It was basic business-blocking and
tackling-communications, cost controls, profitability, teamwork and more.

The roots of the company are, of course, the automatic shufflers. That market was splintered at one point, but Shuffle Master seems to have consolidated it again. Can you explain some of the other products that Shuffle Master offers to the gaming industry?
Shuffle Master's genesis is obviously with the shufflers. But over the years, before I got here, the company necessarily broadened its offerings.

Since I've been here, I've encouraged Shuffle Master to use talented people, even if they're not with the company, to bring in more products. Our electronic table segment includes iTable, TableMaster and more. And finally, our AGM segment, which started with the StarGames joint venture and is Australasian-centric now, will broaden quite a bit in the future.

We have four different product groups. Utility includes the shufflers, shoes, chippers, etc. Proprietary games is a growth area for us with Three-Card Poker, Ultimate Texas Hold'em and others.

Let's talk about one of your most exciting new products, the iTable. Tell us exactly what it does and what it brings to a casino operation.
The iTable has more potential than anything I've seen over the last 20 years. And if it lives up to the buzz, we'll be very happy.

It's a hybrid of a live dealer, with traditional cards and felt, but then it includes a computer interface with the player, which allows them to play the game with virtual chips. They make all their bets with virtual chips. The game plays faster because there is no take-and-pay with the chips. Many prefer to play without the chips because they're not dirty. The real driver is just that it's a fun way to play.

Most important for the operator, it's the first system as far as I know that gives you true player tracking down to the penny.

You've got a seasoned executive staff here at Shuffle Master. How important are the people that were here when you got here to the future of Shuffle Master?
I was very fortunate to inherit a great corps of executives and employees. They are very knowledgeable and passionate and are the reason this company is successful. They are the glue that holds it together.

Shuffle Master had a challenging financial state when you came aboard. What are some of the changes you made to make Shuffle Master more financially viable?
Fortunately, there were a number of initiatives that the previous chairman, Mark Yoseloff, had started before I got here-cost controls, restructuring the balance sheet and others. So we just accelerated those efforts, cost initiatives in operations and in the manufacturing side. We're working on our balance sheet to reduce debt, which is actually quite enviable when compared to others in our sector.

Shuffle Master's international market is growing quickly. What have you been doing to expand that part of the company?
We have subsidiaries in two regions: Star Games, which covers Australasia; and Card, which covers Europe and Africa.

We've been beefing up our operations on the Pacific Rim, particularly in Singapore, where we'll be in the two casinos opening there, and in the Philippines and the rest of Asia. We're doing well in Europe with Card. And Latin America is also a key growth market for us.
    
What is your vision for the future of Shuffle Master?
We'll continue to see growth in the utility market, but that will be relatively flat since we have such a big market share. Our growth there will be in new casinos and jurisdictions.

Proprietary games has unlimited growth. It's just limited by your imagination. The games we have can grow quickly and we're always looking for more games that players enjoy.

The electronic table segment is probably the most exciting to me because there is such an opportunity for growth there.

And although we're a niche player in the AGM market, there's plenty of room for us to grow without competing with the major players, who do what they do so well.

So we'll grow in all four segments, with the latter three growing more quickly percentage-wise.

By Frank Legato   Wed, Dec 09, 2009

Manufacturer: Aruze Gaming
Platform: Millenary A
Format: Five-reel, 50-line video slot
Denomination: .01, .02, .05
Max Bet: 200, 250, 300, 500, 1,000
Top Award: 100,000
Hit Frequency: Approximately 50%
Theoretical Hold: 1.96%-10.15%

This is one of the games leading the push of Japan's Aruze into North American markets. It is a 50-line video slot available in any of the manufacturer's new dual-monitor cabinets-the "G-Wave" upright, the "G-Comfort" slant and the futuristic "G-Enex."

Show Girl features high-resolution video graphics to communicate a glitzy entertainment theme. The center of the game is the wild symbol-the "Wild Lips" that appear as a giant topper on the machines.

The machine's volatile program depends largely on the wild symbol. During the free-spin bonus event-called the "Cabaret Feature"-one of two showgirl characters will glide across the screen. If the showgirl is dressed in black, she will point a cane at one symbol and transform it into a Wild Lips symbol, which remains in place for the entire free-spin round. If the showgirl is dressed in white, she will point to anywhere from two to four of the symbols to transform them into wild symbols.

If the maximum bet is wagered, one wild symbol is in position at the start of the free-spin round.

The bonus symbols in the primary games trigger 10 free spins, and five additional spins can be retriggered within the feature.

The game also includes special features like "Rescue Spin," which is designed to reimburse the player for long periods that occur without a free-spin bonus round. If a player goes a certain number of spins without a bonus sequence, an "angel" comes onscreen and awards a free-spin round. A countdown appears when there are 10 games left until a Rescue Spin.

By Frank Legato   Wed, Dec 09, 2009

As you know, the little slice of heaven that is this column normally focuses on one topic, dissecting all the nuances of some complex subject to gain a better understanding of that universal question, "Why?"

Just kidding.

Usually, I find something goofy in the casino news and make stupid wisecracks about it. Every now and then, though, I find several goofy things on which to crack wise. This is such a month. My faithful assistant, Bud, has perused the nation's newspapers for me and has found some weird, wacky stuff. (Bud is also my imaginary friend.)

Let's see. First, we have meatballs at the Rio in Las Vegas. No, I'm not describing a meal. I'm talking about the "Martorano's Masters Meatball Eating Championship." This is where several freaks of nature-they are thin people who can grease down any manner of fatty food and still be thin people-gather in front of an enormous pile of cooked meat and stuff it into their faces in a horrific display of Romanesque gluttony.

It's a "Major League Eating-sanctioned competition." I'm not making that up.

Renowned "professional eater" Joey Chestnut took the gold, winning $1,500 for scarfing down 50 meatballs, or 6.25 pounds of cooked cow. It was a world record.

His mother must be so proud.

Coming in second was Pat "Deep Dish" Bertoletti. Another skinny dude, the Deep Dish came in second by a single meatball. What, he couldn't have fit one more in there? There could have been a sudden-death eat-off. (And I mean that literally.) Bringing up the rear in third place was Sonya Thomas, a teeny little 105-pound woman who is well-known in professional eating circles. She only managed to consume a mere 42 meatballs-a near-anorexic performance.

(Meatballs aren't Sonya's best event. I hear a hot dog makes her lose control.)

These eating contests are becoming popular casino events. (Personally, I like watching the chicken-wing contests. With all the sauce, they are particularly grisly displays.) However, they weren't the only battles that occurred last month in casinos.

There was that cat-fight at the Morongo.

Sorry-nowadays, "cat-fight" is probably considered an insensitive, sexist kind of term. Let's call it a "girl fight." This was an old-fashioned but quite spirited girl fight in the food court of the California casino. Tables, chairs, hot dogs and Italian subs were all flying around a huge gal-scrum. What made it really interesting, though, was how it was broken up.

The fight was broken up by Tim Floyd, the former USC and Chicago Bulls basketball coach. Just as he would have broken up a fracas at mid-court, Floyd stepped into the fray and separated the combatants. One woman was not pleased, and picked up a chair behind Floyd's back. If she hadn't been stopped by another rather large man, she would have brained Floyd with it.

It was quite a scene. And the best part? Someone had a camera. It's all over YouTube.

There were sanctioned fights at casinos last month as well. The one dubbed "goofy" by Bud, my imaginary assistant, was a charity event at California's Commerce Casino. Someone beat the crap out of reality-TV star Kim Kardashian in an event where she, her brother Robert and stepfather Bruce Jenner all got punched in the face by fans for charity.

Personally, I would like to see every person involved in any way with reality television-starting with the creators and producers-line up to get punched in the face. But I digress.

Speaking of competitions, the 2009 "Person Of The Year" awards at Mandalay Bay last month attracted one of the most famous and infamous baseball players of all time, Sammy Sosa. The former Chicago Cubs and Texas Rangers slugger, though, raised eyebrows at the event for something other than his steroid-pumped, gargantuan forearms:

He showed up white.

I'm serious. Anyone who watched Sosa play knows the man, a native of the Dominican Republic, to be of African heritage with a very dark complexion. When he showed up at Mandalay Bay last month, he looked like a lighter version of Louis Prima.

Asked whether he is bleaching his skin, Sosa replied that his sudden albino look was an "accidental" result of a skin rejuvenation treatment he is undergoing.

You know, just like he accidentally took steroids for several years that one time.

Well, kids, there was more funny stuff at the casinos last month, but I just looked at the bottom of the page, and we're out of space. (That's right. I'm here, inside the magazine.)

Right now, I'm off to eat some meatballs. I'm going for the record.

By Frank Fahrenkopf   Tue, Dec 08, 2009

As I look back on what amounted to an exceptionally challenging year, I cannot help but feel a strong sense of optimism. To be sure, 2009 was a year unlike any the gaming industry has ever faced. As the nation grappled with the most severe economic downturn in decades, consumer discretionary spending and confidence declined dramatically, leaving our industry-and many others like it-bruised and battered.

But, in the midst of these difficulties, the gaming industry continued to seize new opportunities whenever they surfaced. Despite slashed budgets and depleted workforces, we found myriad ways to do more with less. As a result, our industry is now stronger and better equipped to face whatever obstacles the coming year might have in store.

For example, as controversy over business travel swirled in Washington earlier this year, the gaming industry found itself in the glare of the media spotlight more than ever before. The industry capitalized on the opportunity to expand its national presence and renew its commitment to educating senior political leaders about the benefits of gaming.

In September, the American Gaming Association hosted its first-ever fly-in event, which convened the most influential gaming leaders in Washington for two days. The event provided them with unprecedented access to more than 50 national policy-makers, including every member of the House and Senate leadership from both sides of the aisle. Gaming leaders reminded legislators that our industry is a vital contributor to many state and local economies, providing good-paying jobs and opportunities for local businesses.

September also saw the launch of a web-based tool to further the industry's federal legislative agenda. The new online AGA Gaming Advocacy Center features useful resources-such as sample letters and talking points-and encourages gaming industry stakeholders to call, write or email their respective members of Congress about important policy issues.

Throughout the year, the industry won several important legislative victories. The AGA worked with its member companies and allies in Congress to ensure the gaming industry was included in provisions of the stimulus bill allowing companies to defer tax payments on income from the repurchase of debt and to deduct portions of the cost of new equipment purchases or upgrades in the first year of service. These provisions provided some relief for struggling companies. Also, the AGA joined forces with its travel industry partners to lobby for passage of the Travel Promotion Act, which, at press time, is awaiting final approval.

Also in 2009, as the gaming industry continued to expand-both domestically and internationally-the AGA found new ways to keep industry professionals better connected.

June saw the launch of AGA SmartBrief, a daily e-newsletter designed to keep gaming representatives better informed of the latest industry news. Using proprietary technology, editors of AGA SmartBrief distill and disseminate the most critical news stories, free of charge, to more than 6,400 subscribers every day. In October, the AGA surveyed SmartBrief subscribers about the industry's current and future prospects, yielding many valuable insights.

In addition, the AGA continued to promote business networking opportunities among industry professionals through its Global Gaming Expo family of events. G2E 2009, which took place in Las Vegas last month, was a tremendous success, attracting more than 25,000 attendees from all over the world. In addition to showcasing the latest industry trends on its exhibition floor, G2E offered attendees three full days of outstanding educational programming.

Likewise, the third annual G2E Asia once again convened attendees from every corner of the Asian gaming market to share new ideas and best practices. And, recognizing the immense potential of the burgeoning Latin American gaming sector, the AGA developed a partnership with Monografie this year to jointly sponsor SAGSE, the premier gaming business event in the region.

Also this year, the gaming industry identified several new opportunities to share its critical responsible gaming message. The National Center for Responsible Gaming-the AGA's affiliated charity-joined forces with the G2E Online Education Center and International Game Technology to launch the NCRG Webinar series. This new resource brings cutting-edge programming on gambling disorders and responsible gaming to the desktops of health care providers, researchers and gaming industry professionals free of charge.

And, in September, the NCRG announced the official recommendations of the national Task Force on College Gambling Policies, which was created by the Division on Addictions at Cambridge Health Alliance, a teaching affiliate of Harvard Medical School. The Task Force recommendations provide a solid, science-based framework colleges and universities across the country can use to address gambling and gambling disorders on campus.

The accomplishments I have discussed here are only some of the gaming industry's many successes in 2009. It is truly remarkable that we have managed to achieve so much, even while facing severe economic turbulence.

Thankfully, the turbulence may begin to dissipate in the coming months. Recent revenue figures suggest that the industry may be turning a corner.

Throughout 2009, gross gaming revenues have been consistently depressed; every month, they have lagged significantly behind 2008 figures. However, gross gaming revenues for September were down only 1.8 percent from 2008 figures-a far less substantial decrease than in other months. If this trend continues, 2010 will have more bright spots than 2009.

Ultimately, I believe the future is bright for the gaming industry. Our achievements this year-managed despite considerable adversity-clearly demonstrate that ours is a uniquely innovative and adaptable industry. Armed with important lessons learned in 2009, we stand ready to face whatever challenges the coming year has to offer.

By Frank Fantini   Tue, Dec 08, 2009

There's a famous line about the New York legislature but pertinent everywhere: "No man's life, liberty or property are safe when the state Assembly is in session."

And, boy, is that true in the gaming industry.

The term for this danger is called legislative risk. Simply put, it means that what Uncle Sam, a state legislature or a Communist Chinese president gives, he can take away.

We've seen this phenomenon over and over again.

Perhaps the most notorious, from the casino industry's perspective, has been the state of Illinois.

It first legalized casinos. Hooray!

Then it raised taxes. Ugh!

Then it raised them again. Ouch!

Then it raised them at the top level to 70 percent. Eventually, even Illinois politicians saw the counter-productivity of that move and rolled back the tax, though to what one still might consider an extortionate level.

The current case of a love-hate attitude of a government toward gaming comes from China.

Stocks of Macau casino companies have been on a roller coaster for about two years.

Earlier, they soared as investors were in an almost wet-your-pants euphoria about the building boom in Macau, the belief that Chinese are nearly manic about gambling, and the extraordinary growth story of the Chinese economy.

Then the mood changed. At first, concerns were dismissed. The Chinese want all the growth that casinos offer. No problem, gaming executives said.

But the Chinese government continued to squeeze visitation until revenues began to fall, and so did the stock prices.

More recently, travel restrictions from the Mainland were eased, visitation soared, and so did stocks driven by forgiving, and forgetful, investors.

But a huge jump in September revenues apparently spooked the Chinese, and Macau talked to the casinos about capping growth.

Stocks slid. But as before, executives discounted the effect of such talk. The Chinese just want steady growth, say 15 percent a year, not an overheated 53 percent, they said.

But just two days later, neighboring Guangdong Province slapped on travel restrictions again. Once more, stocks tanked.

We'll see how all of this plays out. Logic says the Chinese want a prosperous Macau, and they want to favorably impress Taiwan with the success of the one-nation, two-systems model in hopes of achieving a reunification of that land into China.

But one never knows.

Even in the stable and predictable United States, internet gaming companies, publicly listed on the respectable London Stock Exchange and financed by the biggest firms on Wall Street, did not foresee the 2006 law barring financial online gaming transactions, and its sudden wealth destruction.

Three things investors and business executives should keep in mind:

1. Political stability is a rarity in most of the world, and China especially has had a tumultuous history. What is true or said today might not hold as soon as tomorrow.

2. Mainland China might be hurtling toward capitalism, but the Communist Party is still in charge. That means a dictatorial and ideological government sets the rules. And the Red ideology abhors gambling.

3. What any government gives, it can take away, especially from a privileged industry that draws no public sympathy, and is seen by much of the population as a sinful bane.

In other words, gaming investor beware.

However, legislative risk sometimes comes even before gambling begins, as Ohio and New York are demonstrating.

If a trader put some money into Penn National before the vote and the stock popped after PENN won the Ohio casino referendum, he did all right.

But an investor who bought PENN or a supplier after the victory based on analyst calculations of how much money the companies can make now that casinos are legal, bought on political speculation, not business fundamentals.

For, no sooner did the polls close than Issue 3 opponents began to try to undo it. And in Ohio, Land of the Perpetual Referendum, several suggested referendums next year would legalize slots at racetracks, raise the 33 percent gaming tax, or legalize up to 15 casinos.

The most draconian referendum, proposed by Columbus Mayor Michael Coleman, would strip PENN and Dan Gilbert of their hard-won casino rights and put the licenses up to bid, at a higher tax rate, of course.

In New York, politicians are changing the rules on the Aqueduct slot parlor even before they pick a winner.

That is not surprising considering that the winner is being chosen by an unelected governor who wants to be elected though the president of the United States, of all people, has asked him to step aside, and by the leaders of the state Assembly and Senate, one a Democrat and the other a Republican.

The process has become so political that several of the six bidders have been making it a public relations contest, including privately accusing others of planting favorable and unfavorable stories in New York newspapers.

The latest twist by the cash-strapped state is that bidders must put up $200 million cash in advance. Steve Wynn promptly dropped out. Others might be gone by the time this column is published.

The shenanigans in New York are nothing like in Ohio, where both sides spent many millions of dollars as competing gambling interests combined with politicians on both sides to hurl outrageous allegations at each other.

Ohio is an example of an initiative and referendum system that has become dysfunctional in an age when special interests hire professional petition companies to contort what originated as a process to give citizens direct access to lawmaking.

But that's another column for another publication.

For here, suffice it to say that legislative risk is one of the big unknowns for gaming investors.

By Roger Gros   Tue, Dec 08, 2009

Those of us in the industry laugh when we read books or see movies with casino owners portrayed as sleazy criminals, connected to the mob, committing all kinds of heinous crimes while being protected by dirty politicians. We know those kinds of things could never happen in the modern casino industry.

The regulatory oversight in modern casino jurisdictions is so complete that even a whiff of illegality is enough to bring incredible scrutiny down upon an operation, a company or an individual.

But that message has rarely gotten out beyond the jurisdictions where gaming is located. Unless you work closely with members of the industry, those old stereotypes and mistaken perceptions reign supreme. In fact, one of the first goals of gaming when it enters a new jurisdiction is to dispel those notions that gaming is somehow shady or scandalous. So we continue to labor under that shadow, despite some incredible people who lead our industry.

An amazing thing happened for the gaming industry in October. On one of those Sunday morning political talk shows that month, a casino executive was brought on to discuss an issue that had nothing to do with gaming or criminal activity. And the questions from the interviewer were non-gaming-related and non-accusatory. The casino executive responded as an American, a businessman and someone who cares deeply about the direction of the nation.

Now, these media moments are a formula. In this case, the topic was the impact of the stimulus plan that was proposed by President Barack Obama, passed by Congress and implemented by the administration. So the plan was to get a politician, a businessman and an economic expert and let them go at each other. But in most cases, the businessman in the equation would be someone like the head of a major American manufacturer, an auto company or a high-tech organization. The appearance of a casino executive on any TV news program was heretofore limited to stories about crime, gaming or the legalization of it.

The casino executive in this case was, of course, Steve Wynn. The program was on Fox News and the impact was immediate.

Wynn's criticism of the stimulus package and the health care initiative currently being pushed by the Obama administration created a firestorm in and out of the gaming industry. The politician in the equation was Governor Jennifer Granholm of the hard-hit state of Michigan. She called Wynn's assertion that a government has never raised the standard of living for the working class as "simplistic."

Wynn criticized government spending, the health care initiative and other administration efforts.

"From day one," he said, "the goal should have been job creation."

Within the industry, executives with Harrah's Entertainment and MGM Mirage took issue with Wynn's remarks, crediting the stimulus package-and their home state senator, Majority Leader Harry Reid-for saving jobs in Nevada.

A few days later, MGM Mirage Chairman Jim Murren appeared on the Fox Business channel to emphasize those issues.

But the point is, here's at least two executives in the gaming industry becoming involved in a national debate on whether or not a program developed by Congress and the president is good for the nation. Whatever you think of their arguments, this has to be good for the gaming industry.

By appearing on these national programs, casino executives show themselves to be thoughtful observers of the state of the nation. It demonstrates that they represent thousands of employees-on Fox News Sunday, Wynn was described as an employer of 20,000 people-who vote and have a real opinion that matters.

Harrah's Entertainment Chairman Gary Loveman has often complained about mistaken perception of the gaming industry in the mainstream media, and the regulations that result.

So it's people like Loveman, Murren, Wynn, AGA leader Frank Fahrenkopf, Donald Trump and many others who need to get out in front of the issues that affect our communities, our country and our world. We need more visibility and more attention to our views because our views are just as genuine and important as the views of any other industry in the world.

No, we many not agree every time one of us speaks up, but there needs to be more of it. So even if we don't agree with the opinion of someone within the gaming industry, it's important that we defend their right to voice it, because it only helps to bring legitimacy and respect to our business.