By Roger Gros   Tue, Jul 07, 2009

For the people, Lawrence Ho has the proper respect for his father, Macau gambling magnate Stanley Ho. After all, he followed his father into the family business and recognizes what his father has contributed to the former Portuguese enclave, now a Special Administrative Region in China.

But it’s clear, soon after meeting him, that Lawrence wants to blaze his own trail in Asia and establish his own reputation. Together with Crown Casinos, Australia’s premier gaming company led by another “son”—Jamie Packer, whose father, Kerry, was a media giant in Australia and one of the world’s most sought-after “whales” or high rollers—Ho helped form and operates Melco Crown Entertainment, using a subconcession license purchased from Stanley Ho’s SJM company.

As one of Stanley’s 17 children (by several wives), Lawrence says he learned his work ethic from his father.

“He had a lot of money but his family lost it,” says Lawrence Ho. “He had to start from scratch. That’s probably harder than not having it at all. He’s taught me hard work and determination.

”And it has been this determination that has helped Ho create and complete the new City of Dreams integrated resort on the Cotai Strip in Macau, across from the Venetian.

Dream Time
In the face of a global economic crisis, visa restrictions on visitation from mainland China and slumping gaming revenue in the SAR, Ho has put together an impressive property that is designed to take advantage of all Macau has to offer a casino operator.

“The opening of City of Dreams represents a culmination of nearly five years of planning and development,” says Ho. “As our flagship property, it represents a major step forward in Macau’s transformation as the region’s premiere leisure, entertainment and gaming destination.”

Ho says he considered many models before settling on his design for the City of Dreams.

“The original idea for City of Dreams that I designed came to me five years ago,” he explains. “At that time, I visited Las Vegas and a lot of international resorts to visit the casinos and the hotels. One of the things I disliked was the gigantic, 3,000-room hotel. If you have to wait 45 minutes for a cup of coffee or an hour and a half for a steak, that’s not good service. When you’re talking about the leisure business, it’s really about the total experience. Rather than try to build these resorts easier, as it would have been to build 3,000 rooms, we should try to accommodate the customer the best that we can.”

And that meant smaller hotels, a property that was more convenient to the guests and a something-for-everyone mentality.
   

“All the buildings are erected on a gigantic podium, so you have great access to each of them,” says Ho. “I’ve heard numerous complaints from people about properties where people have to walk 20 minutes from their rooms to a restaurant, convention center, the entrance or the casino. At our property, each hotel is conveniently located near all these things. From the hotel lobby to your room, it’s never more than two minutes. That was the concept at the beginning for the City of Dreams.”

Because the Macau government requires that visitors to a hotel or shopping area not be forced to cross the casino floor, Ho says his team designed the retail segment of the City of Dreams to be that conduit, thereby combining a passageway with entertainment.

“It’s part of the integrated approach that we have,” he explains. “Our overall common area is the Boulevard, where our retail shops are. Rather than just having access, we made use of the retail area as the main portal to take people from one place to another. People have been very pleased with this concept. And it helps our gaming, too. Our casino is located in the heart of the building, so to conform with the rules of the Macau government, people should be able to walk from one point in the property to another without having to cross through the casino. This allows us to do that in a creative manner.”

With 420,000 square feet of gaming space (520 table games and 1,350 slots), the City of Dreams is a massive expansion of the Macau market. And while it adds only a few hundred hotel rooms in the Crown Tower and the Hard Rock Hotel, another 800 rooms will come online when the Grand Hyatt Macau opens later in the year.

Ho’s gamble with City of Dreams is doubled down by his partner, Packer. Ho says business at this time is actually better than when the company opened its first casino, Crown Macau, now re-branded as the Altira Macau.    

“Things were much tougher when we opened Crown Macau Tower two years ago. We consider City of Dreams’ opening to be a much better time and business climate,” he says. “Melco Crown Entertainment still believes in our future, and also in the bright future of Macau. We were determined to complete City of Dreams this year, and the recent turbulence in the global markets has not deflected us from our task.”
   

The iconic architectural feature of COD is the domed “Bubble,” an attraction that features an immersive multimedia experience produced by Falcon’s Treehouse. The first few days produced a huge demand for the 15-minute show. The concern, however, is that it’s a one-time-only experience, even though Falcon’s Treehouse expects to install a new show every six months.    

“The Bubble is really a full-on Hollywood production that extends 360 degrees,” Ho says. “Technically, it’s impossible for any one person to see everything. It has a standing capacity of 500, so each time, you’re seeing a different show from a different angle. So far, the response has been tremendous.”

Ho also believes the Bubble will create an awareness of Macau by the general public that previously wasn’t there in Asia.

“When we embarked on this journey five years ago, there weren’t many attractions in Macau beyond gaming,” he says. “When people ask why we don’t have more visitors from other parts of Asia, the answer is simple. We just didn’t have enough attractions. Hopefully, this will be the first of many.”

All Things to All People
City of Dreams looks like a mass-market play—with the huge public casino, large retail development and non-gaming entertainment—and it is. But it’s also much more, says Ho.

“At City of Dreams, we’ve really taken a portfolio approach,” he says. “We have a lot of mass capacity in Hyatt and Hard Rock. But we’ve also segmented it. If you go on the property, from the furthest east and west sides, it’s almost a transition from the mass market to the VIP market. On level 2 and the upper levels of Crown Tower, we have private VIP salons. We’re not trying to be greedy, but at City of Dreams, we’re using different products to target different segments.”

Ho says Crown is the best at the VIP market in Asia, but bristles when it is suggested that is only because it pays the highest commission to the VIP operators.

“We were only the highest paying commission for just two months before everyone paid the same thing,” he insists. “And some people have gone beyond that pretty significantly. The VIP market is always going to be a big part of Macau. We’re still developing the credit history in China, so we’re going to need the VIP market for a long time.”

But Ho believes the mass market will be crucial to the success of City of Dreams, especially since it has not experienced the downturn suffered by the VIP market.

“The mass market has actually grown quite steadily,” he says. “Since 2008, the VIP market really dropped off, and for good reason. The global financial crisis has really affected the VIPs and their overall net worth. But the mass market has actually never fallen. Even in 2009, the market continues to grow and continues to be strong. Within mainland China, which is our primary market, there is a young and relatively wealthy group of professional people who are willing to spend. If you can give them a quality experience in Macau, they are more than happy to spend it.”

Ho is hopeful that Melco Crown can penetrate the Chinese market to a greater extent to grow the mass market.

“I think there’s a lot more work that can be done,” he says. “So far, the market has grown very nicely, but there’s more we can do. Visitation from Guangdong province in mainland China, for example, has fallen at a pretty staggering rate since the visa restrictions. But we can do more work. There are plenty of provinces where travel to Macau is still banned altogether. We can do more work with tour groups and travel agents.. The mass market is a developing market.”

To attract this mass market, Ho goes back to the name of the property, which he says truly reflects his philosophy.

“For me, there’s a deep meaning behind the name,” he explains. “Rather than us trying to force our customers to live our dreams by building a heavily themed property, we’re going to try to fulfill their dreams. If they want to be a rock star, they can hang out at Hard Rock. If you want to be a VIP high-roller, then Crown Tower is the place for you. Hopefully, we can do that.”

Service and Cooperation
Like all good casino operators, Ho understands that even the newest, brightest and most appealing physical plant won’t work without the dedication of the employees. So, Melco Crown spent months training its employees on something called “Dream Service,” the standard that is set for all company properties.

“I believe in continuous improvement,” he says. “I’ve asked for feedback from all our employees and visitors so we can get better. Without our employees, it would just be a well-built property. That’s the hardware, but we need the software, the people, to make it a success.”

In addition to the feedback, Ho says his company is poised to respond to concerns from employees.

“At City of Dreams, ‘Dream Service’ ensures that each one of our 7,000 staff understand what is expected of them,” he says. “But it all starts with the philosophy that Crown brought to Macau. We treat our staff very well because we understand at the end of the day, happy employees mean happy customers. I even have the ‘Dream Service’ mission statement in my wallet!”

Another crucial element to the success of City of Dreams is cooperation with its Cotai Strip neighbor, the Venetian. It hasn’t been easy so far. For months, Venetian executives refused to meet with Melco Crown officials to discuss ways they could work together, but the recent formation of a Macau casino association has thawed the chill in the relationship.

“There are a lot of areas where we have common and mutual interests,” Ho explains. “We’re very happy that after two years of negotiations, we got at least the pedestrian crosswalk installed. Hopefully, the footpath is going to come next.

“Ultimately, we’ll work closely together. We’ll use some of their Cotai ferries since their terminal is closest to us. We’ll have extensive discussions on areas where we can cooperate.”

Asian Ambitions
For Melco Crown, becoming established as the leading casino company in Asia is one of Ho’s goals. He’s been actively searching for new venues in the region.

“We’re focused on Asia,” says Ho. “We’re definitely looking for opportunities in this part of the world. That said, for the next 12 to 18 months, we’re going to concentrate on operating City of Dreams. That is our priority.

“We’ve been looking at Japan and Taiwan for two or three years now and built up some very good contacts. When the time comes, and all our assets are performing well, I’m sure we’ll jump in with both feet.”

Major casino companies also do the small, but important, things that Melco Crown has embarked upon, like a focus on responsible gaming.    

“This is an issue that is especially close to my heart,” he says. “At Melco Crown Entertainment, we are one of the leaders in terms of corporate social responsibility in Asia. There are definitely problem gaming areas that we focus on. That’s why we’ve implemented several programs. We imported one from Crown in Melbourne years ago. We continue to use that program and we’ve refined it for the Macau market with our CSR team. We’re happy to work with the government on these issues because it’s good for society and reduces the negative publicity for the gaming industry.”

Melco Crown also wants to play a leading role in the development of gaming in Macau. He’s concerned about the impact of the Singapore casinos, which will debut next year. He says it may be time for the government to consider reducing the somewhat onerous Macau tax rate.

“I would like to see a lower tax rate,” Ho says. “A case can be made that a lower tax rate would actually create higher tax revenues. There’s a portion of the business going to other Asian countries where the tax rate is lower. And this is even before Singapore opens, which I believe is really a credible threat, unlike some of the smaller Asian countries. We’ll see what happens when more integrated resorts open.”

Ho recognizes that the casino association was the brainchild of his father, Stanley, and is central to Stanley Ho’s understanding of corporate involvement in the community and its wellbeing.

“He’s a very popular individual in Macau. He’s always told me that we should all get along because we’re all involved in the same community. It makes a lot of sense.”

In Macau, the son may eclipse the father. 

By Rich Geller   Tue, Jul 07, 2009

Bulgaria has developed a vibrant gaming industry over the past 20 years, as have many of the formerly Soviet-dominated lands. But while individual casinos and the gaming devices themselves are now a match for those found just about anywhere in Europe, the nation has some ground to cover before government and the general population can realize the full, positive potential of gaming.

Bulgarian Betting
At the recent Fifth World Meeting of Bulgarian Media, where the role of the media in improving the nation’s tourism offering was a featured topic, a presentation from the Bulgarian Union of Balneology and Spa Tourism put forward the group’s idea to establish an internationally recognized wellness industry within the country.
   

The natural complement to such an industry is casino gaming, and the suggestion that gaming could help Bulgaria become a year-round tourism destination was presented at the conference by Nadia Hristova, member of the management board of the Bulgarian Trade Association of Manufacturers and Operators in the Gaming Industry—BTAMOGI for semi-short.
   

The idea—to promote casino gaming officially as part of the total tourism package—has been kicking around Bulgarian government circles for some time. In January 2008 the State Gaming Commission organized a conference to examine all aspects of the industry. During a discussion of the latest strategy on tourism development, Deputy Finance Minister Atanas Kunchev said, “Gambling tourism is a resource Bulgaria has not exploited. A national gambling development program needs to be drawn up as part of the tourism industry.”
   

The following month, State Agency of Tourism Director Anelia Krushkova revealed that Bulgaria had been designated an official tourism destination by the government of China.   
     

Given the astounding success of casinos in Macau at the time, fueled in part by Chinese visiting from the mainland, it was only natural to start thinking of linking casinos to tourism.
     

In particular, the challenge presented by the prospect of Chinese visitors was to find something other than Bulgaria’s main tourism focus—Western religious historical points of interest—that would appeal to the new audience. However, Krushkova stressed the point that, at the time, there was no way to incorporate gaming into the tourism strategy discussions then under way.
     

In reality, though, Bulgaria’s casinos have been attracting tourists from nearby countries for years. However, not a lot of centralized thought or effort has gone into the process.

Turkish Connection
For residents of neighboring Turkey especially, where casinos have been banned since the late 1990s, Bulgaria has become a gaming destination. The Princess hotel group from Turkish entrepreneur Sudi Ozkan has invested over $100 million in hotels and casinos all over Bulgaria. Ozkan has said he prefers to invest in sites closer to Turkey, like his Dedeman Trimontium Princess Hotel and Casino in Plovdiv, which is only 330 kilometers from Istanbul. But he also has the 600-room Dedeman Princess Hotel and Casino in Sofia, another 230 kilometers past Plovdiv.
   

A new and potentially huge factor that could affect casino tourism is the long-expected shutdown of gaming in Russia and the recent surprise closing of all casinos and slot parlors in Ukraine. Especially the Black Sea resort areas of Bulgaria and Romania could be in for a particularly busy summer season.
     

Curiously, the main websites of some hotel resorts barely, if at all, mention there is a casino on the premises, let alone provide a description of what games or amenities are available. To acquire that information, the tourist will have to locate a casino’s dedicated website.
     

For example, a potential tourist hears that there is a casino at the Dedeman Princess Sofia Hotel. If he goes to the Dedeman Hotel home page, and from there to the Princess Sofia description, there is no mention at all of a casino. The only way to discover the presence of a casino is to somehow arrive at www.worldofprincess.com and from there navigate to the individual hotel or casino. Even then, the link “Dedeman Princess Sofia Hotel” leads to a site that only lists “casino” as one of the hotel amenities. Only the link “Sofia Princess Casino” leads to details about the property, such as the availability of 220 slot machines and 16 live game tables.
     

In all, Bulgaria has 24 casinos with tables and slots, plus about 950 casinos with slots only. The machines in both types of casinos operate under the same legislation. Operators are allowed to set their own minimum and maximum stakes, as long as approval is received from the gaming commission. The law does require that machines pay out at a rate of at least 80 percent, and allows up to 5 percent of wagers to build jackpots.
     

The license fee to operate a casino with slots and table games is BGN 35,000—about $25,000. For a casino with slots only, the fee is BGN 10,000 for up to 20 machines and BGN 5,000 for any additional machine.
     

The international poker world has found its way to Bulgaria in recent years. Several casinos offer cash games and tournaments in Texas hold’em. Even the electronic poker tables of supplier PokerTek are represented in clubs around the country, including the three Techno Poker Clubs of the Eldorado group, in Sophia and Varna.
      

A major European poker event, the Bulgarian leg of the European Masters of Poker tournament series, was held at the Grand Hotel & Casino International, situated in the Golden Sands beach resort on the Black Sea coast. The tournament brought 311 players from 18 different countries to Golden Sands, with the final table attended by players from Bulgaria, Finland, Israel, Poland and Sweden. A €311,000 prize pool provided the winner with €77,750.
   

Gaming is not just for visitors, however. Especially the slot casinos cater for the local traffic. In 2008 there were 17,000 machines in slot clubs, as compared to about 1,600 in the full casinos. Some 80,000 people nationwide are employed in one form of gaming or another, including bingo parlors, betting shops and such.
   

On the darker side, according to ReportingProject, a 2008 State Gaming Commission survey found that between 4 percent and 7 percent of adults, and as many as 12 percent of high school students, have a gambling problem.
   

Last October, the three coalition parties that govern Bulgaria agreed to regulatory amendments that could eventually lead to a regulated online gaming industry. However, the primary aim of the amendment is to benefit the state lottery by expanding its distribution network.
   

Bulgaria has been fortunate to have a strong, involved gaming trade organization since the early days of regulated gaming. BTAMOGI has been in existence since 1992, and is the main group representing operators and producers of gaming equipment. Membership includes the operators of the 40 largest gaming halls in the country and 70 percent of Bulgarian manufacturers of gaming equipment.
   

Since its inception, BTAMOGI has been closely involved in the process of developing legislation and regulations for the industry. Many proposals that have become law originated with the association.
   

Besides its efforts to encourage the link between tourism and gaming, the association in general wants to raise the profile and prestige of the gaming industry and protect the interests of its members and the public. The organization is working toward implementation of unified standards in the local gaming industry and harmonizing those standards with international standards, including the legal framework in Bulgaria and abroad.
   

BTAMOGI also is working to regulate public relations related to the gaming industry, and to provide support to problem gambling campaigns, including organizing and sponsoring educational and medical programs, special courses and other such initiatives.
   

Since 2005, the association has staged a national, bi-annual seminar where the latest gaming industry developments in technology, management and legislation are introduced and discussed.
   

In autumn 2008, BTAMOGI launched the first Balkan Entertainment & Gaming Expo in Sofia. Together with the accompanying Eastern European Gaming Summit, BEGE was intended as a meeting point for those already operating in the greater Balkans as well as those looking to become involved at whatever level in the region’s gaming, entertainment and tourism sectors.
   

The expo drew 2,100 visitors to the trade show floor, where they found 78 exhibitors. Seventy percent of visitors were from Bulgaria and the rest came from 39 different countries. The gaming summit was attended by 160 people, the largest representations being from Bulgaria, Serbia, Romania and Italy.
   

This year BEGE and EEGS are scheduled to run again in Sofia, October 5-7. What effect the worldwide economic downturn ultimately will have on attendance remains to be seen, but so far, exhibitor participation appears to be lagging well behind that of last year.
   

Not to worry. The people of the Balkans are adaptable.

By Marjorie Preston   Tue, Jul 07, 2009

Public relations advances your message and upholds your brand, even in the worst of times. Here’s how to streamline your communications budget and still maintain a conversation with customers, investors, shareholders and employees.

“There’s no such thing as bad publicity except your own obituary.”
—Playwright Brendan Behan

It’s an old truism of the communications business: “No news is bad news.” “It doesn’t matter what they say, as long as they spell your name right.”
   

But in the midst of recession, when the obituary they’re writing has your casino’s name on it, it’s essential to keep the lines of positive communication open not only with the press and public, but also with your team members and shareholders. And that cart is pulled not just by advertising but by thoughtful and strategic public relations.
    

Tempting as it may be in an economic downturn, trimming too much on the PR end is tantamount to muting your message, and leaving your story for someone else to interpret.
   

Unlike paid advertising, a message dispatched through the public relations department comes with no guarantees. The target audience—which usually starts with the news media—can accept it, ignore it, or worse, turn a benign or positive memo into a negative.
   

But when it works, PR can earn free press and third-party endorsements that are worth far more than advertising. During a recessionary period, says PR expert Mike Paul, corporations and service providers “must invest in telling their stories and explain why they’re better than their competitors, or they will not survive. Public relations is the best way to grow their brands with all of their key audiences.”
   

Plus, it’s cheaper.
   

Public relations “is more a way of thinking and executing ideas than it is a cost analysis,” says Ira David Sternberg, vice president of communications and community relations for the Las Vegas Hilton. “Advertising has a certain budget; you’re buying x number of publications and y number of TV spots.
   

“PR, in this electronic age, is more a distribution network, which is not a major cost factor. The good PR person is capable of being very creative in trying times to get the word out about your company at a cost-effective level.”
   

In addition to being tech-ready—able to flow information through ever-evolving social networks including blogs, Facebook pages and Twitter—the PR team safeguards a property’s reputation and brand in good times and bad, develops relationships of trust with the news media, is accessible during crises, and avoids spin.
   

“You have to be direct,” says Sternberg. “The media has to know you’re not going to misrepresent a situation or mislead them in any way; they have to know you’re going to tell them the straight stuff. I always return phone calls, on weekends or even at two in the morning in an emergency, and though I may not necessarily release all the information about a particular event, I will release the parts that are necessary for the story. And I have no compunction about telling reporters we don’t have all the information yet.”

Fighting the Negatives
As vice president of public affairs for Harrah’s Atlantic City, Alyce Parker has dealt with her share of PR tests in the past year: not only the recession and sagging revenues but layoffs and the fallout from a short-lived smoking ban in the city.
   

Then there’s the company’s union problem. Harrah’s has endured months of negative publicity about its ongoing dispute with the United Auto Workers union. The parties have not yet negotiated a contract with two Harrah’s properties, Bally’s and Caesars in Atlantic City.
   

The UAW, which won the right to represent casino dealers in 2007, has launched a multimillion-dollar ad campaign slamming Harrah’s for allegedly cutting hours and health care for its rank-and-file while boosting compensation for its CEO, and allegedly refusing to bargain in good faith.
   

In addition to print, TV and radio ads, as summer approaches the ubiquitous message is also being carried in the skies above Atlantic City’s famous beach and Boardwalk, with banner planes that bear the slogan: “Everybody loses when workers are treated unfairly.”
   

Only recently has Harrah’s chosen to respond with ads of its own, along with widely disseminated press releases saying company officials have tried more than 50 times without success to reach a contract that is “reasonable, economically feasible and allows us to remain competitive in these difficult times.”
   

Harrah’s message is intended not just for the public at large but for customers, regulators and “our team members—12,000 alone in Atlantic City,” says Parker.
   

She agrees that the goal of public relations is not to slap a good face on a negative story, but to “tell the truth, and advance the message from the company’s perspective.”
   

To that end, Harrah’s PR strategy includes open forums on local radio talk shows that allow people to call in to share complaints or kudos with company general managers.
   

“The communication process has to be in place all the time, but in times like these, we step it up even more,” says Parker. “It affects all our businesses, and the livelihoods of our team members and vendors.”

Highlighting the Positives
Of course, PR is far more than putting out fires. It’s also generating good buzz through special events and good works, and supplying hungry editors with a steady diet of information about entertainment, dining specials, celebrity appearances and the like. 
   

Sternberg regularly sends out a “Hilton hot sheet” to a mix of media, “seven to 12 items that could be about anything from food and beverage to employees to gaming to the hotel division,” he says. “The idea is to provide story ideas—hey, here’s what’s going on—for column items or blogs or TV spots.”
   

Parker is also always on the lookout for unabashed “feel-good” events that polish the Harrah’s image. Free summer concerts at the company’s historic Dennis Hotel on the Atlantic City Boardwalk have garnered lots of free complimentary coverage, as have a host of volunteer projects and in-kind donations to community organizations. And don’t forget puppy power. A recent dog contest on the Boardwalk raised hundreds of dollars for a local humane shelter, drew a big crowd, and raised employee morale all at the same time.
   

“It made our team members feel good,” says Parker. “They loved it.”
   

Unfortunately, good intentions can be upended by reporters on the prowl for bad news. In April, a PR flap resulted when the president of the Casino Association of New Jersey wrote that casino workers should “politely change the subject” if patrons begin to talk about the recession.
    

“Our customers come here to escape,” wrote Joe Corbo of the CANJ, whose subject in the column was how casino workers can provide a superior experience. “If we engage them in discussion about the economy—or even worse, our personal circumstances—we’re reminding them of the very things they’re trying to forget.”
     

In news outlets across the country, Corbo’s advice was portrayed as muzzling employees and denying the awful truth about the economy. The story ended up in the Wall Street Journal and on CBS News, and Corbo had to add that no “threats or punishment” would be handed out to casino workers who did, in fact, discuss the recession with customers.
   

One New Jersey newspaper group went so far as to post the headline: “They don’t want you to talk about it—but we do!”
   

That’s the inherent risk of public, media and corporate relations—the original positive intent can be grossly misconstrued. Parker, for one, thinks the message was right on target.
   

“Our customers want to have fun, enjoy their disposable income, have a nice dinner and go see a great show,” she says. “Joe Corbo laid it out very well when he said, ‘Let’s stop talking about the negative.’”
   

When it comes to news organizations that look for the down side, says Sternberg, it’s important to stay on-message.
   

“It’s human nature; some people just want to approach it that way,” he says. “The only thing you can do is present the facts and follow up if there’s an error in the story.”
   

Stacy Hamilton, director of public relations for SK+G Advertising in Las Vegas, defines good PR as “managing the protection of the brand, and working through media outlets to tell the story of that brand.”
     

Hamilton says smart businesspeople are finding the best PR “stories” in the worst of times.
   

“Anyone with a pulse or who reads a newspaper understands that times are tough, and casinos and resorts are competing for customers like never before. Casinos are appealing to a wider range of guests than ever before, with lower rates and prix-fixe menus and discounts where you can get a four-or-five-star experience without breaking the bank.
   

“From a PR perspective, it’s created an exciting new story for us to tell—‘Hey, we understand what’s going on in the world, and we’re reacting to it.’”
   

Though the temptation in tough times is to slash all marketing costs not tied to direct sales, it’s when no one else is marketing that your message stands out to consumers. The job is made easier and more cost-effective through the explosion of online communities, social media and viral PR, which in some cases are virtually cost-free. But that’s no invitation to deep-six the baseline PR budget.
   

“Realistically, when executives look at their budget and try to cut out non-essentials, some make the mistake of thinking marketing, PR and advertising are not essential. But to stay ahead of the competition and stay top-of-mind with your guests or customers, you have to continue to implement your strategy.
   

“If you abandon your marketing efforts,” says Hamilton, “it will take months to ramp up when things improve and people have extra money. The people who might have spent money with you have already gone to your competition.”
   

Or in the words of Ken Chenault, CEO of American Express, “In tough times, your instinct is to hold back. But that’s the time to be aggressive and on the balls of your feet.”

By Greg Jones   Tue, Jul 07, 2009

When it comes to testing new gaming equipment, regulatory bodies in the U.S. have two choices: they can contract for services to be provided by a private testing company like Gaming Laboratories International or BMM, or they can create their own testing facility.
   

States like Nevada and New Jersey rely on state-run labs. But when gaming was introduced in these jurisdictions, there was little other choice because there were no private labs at the time. These jurisdictions have honed and perfected their setup over the years and have developed efficient and properly functioning systems for testing new games and other gaming equipment. And even then, these states have had to turn to private labs at certain times.
   

In Nevada, the testing facility reports to Mark A. Lipparelli of the Gaming Control Board. Lipparelli says that in cases where it is necessary, the state has sought assistance from the private sector. It’s something he says can happen again if there is sufficient cause to go outside of the traditional state-run testing lab.
   

For example, when ticket-in/ticket-out was first introduced, there was a lot of work required to test the new technology. And because operators want quick access to new equipment and manufacturers want their product on the market as soon as possible, there was a huge demand placed on testing facilities. This increase in workload typically requires labs to ramp up their staffing levels. For private companies, this is simple. For the state-run labs, that’s not quite the case.
   

Kevin Mullally, general counsel and senior director of government affairs for Gaming Laboratories International LLC, who previously served as both executive director and director for legal and legislative affairs for the Missouri Gaming Commission, says typical bureaucratic procedures make such staff changes almost impossible.
   

It can take as long as a year to bring in a new hire for the testing lab, he explains. And if something went awry in the hiring process, it could take even longer.
   

“If you have something like ticket-in/ticket-out hit, where you need to hire 10 or 15 people, well, forget about it,” he says. “That just doesn’t happen. With a private lab, if you need more people, you just go out and interview them and find the most qualified, do a background check and you can get someone hired in a month.
   

“When TITO technology hit the market, GLI was able to help the Nevada lab with the overflow work to get the devices on the floor quickly and ensure that all manufacturers were being treated fairly.”
   

Richard Williamson of BMM Compliance has similar experience on the public side of the equation, and sees similar problems that persist in public labs. Williamson spent 22 years directing the testing facility for New Jersey, and he recently worked with officials in Pennsylvania to establish that state’s test lab. Not only does he see public labs as being slow to react when quick changes in staff size are needed, but he adds that retention and replacement is just as difficult. Anything that delays approval of new products and slows the review process is ultimately bad for the industry, he says.
   

“When it takes as long as a year to replace someone, the operators are suffering,” says Williamson.
   

And it isn’t always just budget or procedures that can delay the process. Changes in administrations can lead to changes at regulatory agencies. Those changes can also delay the time it takes for a product to get approved and make its way onto the gaming floor.
   

“We’re running a business,” says John Roberts, executive director of tribal gaming for the San Pasqual Gaming Commission in California. “When we order machines we want them as soon as possible.
   

“Look at other states. It is evident that there is an inability for them to perform as the market needs. In Nevada and New Jersey it might work, but it doesn’t seem that it does in other places.”
   

That isn’t to say that there are no good reasons for public labs, just that there seem to be only a few. These facilities only have to focus on a specific set of regulations, rather than, say, the different regulations for the 400-plus jurisdictions that GLI works with. And it gives them complete control over their testing procedures, policies and personnel.
   

“The good thing about a state-run lab is that you’ve got a dedicated staff dealing with just your product and your jurisdiction’s rules,” Williamson says. “When you’re testing a product at an independent test lab, you’re testing for a lot of jurisdictional rules—the variations between the states and the tribal regulators. Because the state is testing just for one set of rules, it should expedite things.”
   

While states like Nevada and New Jersey have developed procedures and methods that work best for them, when it comes to new gaming jurisdictions, there was essentially a unanimous conclusion that private labs are the way to go.
   

“The current system works fine,” Roberts says of California, a state that has talked about the possibility of creating its own public testing lab. “GLI and BMM both do an excellent job.
   

“Given the state of the economy, I don’t see this as money well spent. You already have extremely capable companies in place with years of experience, and it just seems like an unnecessary duplication of efforts.”
       

There are additional variables at play in California (compacts negotiated with tribes call for testing to be conducted by an independent lab; the state is dealing with sovereign governments rather than corporations like in Nevada or New Jersey; the state is $45 billion in debt) but other jurisdictions face similar difficulties in creating their own labs.
     

GLI’s Mullally said he would have loved to create a public testing lab in Missouri. He just couldn’t figure out why he should.
     

“I looked at this from a variety of different perspectives,” he says. “I’m a bit of a control freak, and if I could have found a way, a sound public policy argument for creating a test lab, I would have pursued it. But I couldn’t justify the public expense.
    

“And it would have resulted in higher regulatory costs that I think would have reduced capital investments from casino operators and put more pressure on the existing tax base. It’s just simply not as cost-effective as a private lab.”
   

The consensus is that in general, equipment testing is best left in the hands of the private labs so state regulators can focus on auditing the information provided by the labs.
   

“Most jurisdictions choose to have highly trained technical staffs rather than make a significant investment in a full-blown lab,” Mullally says. “They choose to outsource the lab testing function because they find it’s a more efficient and prudent process that best leverages the government’s resources and its authority.”
   

BMM’s Williamson highlights two states for their approach to machine testing: Colorado and Mississippi. These states have maintained control over the process while contracting with a private lab for testing.
   

“In Colorado they do a review of the products recommended for approval by a test lab,” he says. “In essence, they audit what the test labs send to them. It’s one of the better models. They lower their expense and they’re not as subject to the budgetary issues that states are often faced with.”
   

Private labs also bring additional value to the equation in that they have departments to help jurisdictions establish regulatory policy and provide support when needed. In addition, there is a possible cost-savings component for operators and manufacturers, too.
   

“Think how much a slot machine would cost if every jurisdiction chose to invest in a full-service test lab and pass those costs on to the manufacturers,” GLI’s Mullally says. “The efficiency of going to one lab and having testing for a variety of jurisdictional standards done at one time for one price has been a tremendous benefit to the industry.
   

“And if you look at the rapid rise in gaming tax rates, it’s only increased the importance of keeping the cost of regulation as efficient as possible.”

By Roy Student and Carolan Pepin   Tue, Jul 07, 2009

America.

It’s not only been the dream of millions of our own immigrant forefathers. It’s also been the vision of companies in other countries to enter the U.S. gaming market. Although the current state of the economy both here and abroad may have dimmed that ambition, it is still a market that tempts foreign-based executives worldwide.

From near and far beyond U.S. shores, companies have aspired to cross into a land they envision as a vast vista of gaming opportunities. It’s not difficult to understand the lure of the U.S., which accounts for more than 50 percent of the world’s casino action at a value nearing $60 billion in revenues, and which exceeds 750,000 slot and video poker machines and thousands of table games, according to various reports.

Enticing large and small companies based in other parts of the world is a U.S. market that continues to transform from the large destinations of Las Vegas and Atlantic City to hundreds of gaming venues close enough to drive to by most adults. At present, there are slot operations in 37 of the 50 states, up from 31 in 2000.

Leading the attraction of the U.S. has been the explosion of gaming growth in the Native American market, which had its start only in 1988 and now reportedly generates more than $25 billion in gaming action. According to the National Indian Gaming Association, there are 423 Indian gambling operations in the country, operated by 225 tribes in 28 states. This includes scores of smaller bingo halls in addition to the largest of destination casinos with thousands of slot machines.

For all but the past year or so, Native American gaming has boasted double-digit growth from one year to the next. Even in today’s economy, this segment continues to outperform most other markets, including the largest state market of Nevada.

Nevada, the first state to legalize gaming, still lays claim to more than 340 gaming locations with more than 170,000 gaming machines and nearly 6,000 table games. Although in the current recessionary market, Nevada’s revenues were $11.2 billion (down 11 percent for the 12 months ending in February 2009), that’s still larger than most other gaming markets in the world.

Even if the economy continues to constrain casino visits and overall revenues, a different longer-term effect is occurring within the overall gaming market that will maintain a focus on entering the U.S.

As has been the case in other financial downturns, this current economic situation is driving newfound or renewed interest in extending gaming into new markets. From coast to coast, cash-strapped states and communities are pushed to look for ways to balance budgets from taxes on new or expansioned gaming venues and games. Keen interest or actual legislation for new or expanded gaming has been reported in Florida, Maryland, New Hampshire, New York, Ohio, Pennsylvania and Texas, to name a few.

In all, we easily see that the U.S. gaming market will continue as a strong magnet for those from other parts of the globe, as it has since early on.

Opportunity Knocking

Everywhere immigrants have enriched and strengthened the fabric of American life.
 —John F. Kennedy

In much the same way as Kennedy noted of immigrants, we have seen how companies from other areas of the world and their technologies also have enriched and strengthened the U.S. casino market.

An example of this can be traced to one of the first to enter the U.S. market, Australia’s Aristocrat. According to company history, Aristocrat launched its first machine in the United States way back in 1964, just prior to opening its first overseas sales office in Reno, Nevada.

Although it would take some time, the company would make its mark as the creator of what would become known as “Australian-style” slot machines. These slots would energize the casino floor in the U.S. with video slot machines featuring multiple pay lines, with more bonus games than previous slot games. The company also would be among the first to introduce a full library of penny games, and in doing so, would go on to capture a sizeable share of the U.S. market.

Another successful pioneer in the U.S. gaming market was JCM. Its corporate history dates back to the mid-1950s, when its Japanese parent company was founded as Japan Cash Machine Inc., Ltd, with a vision of developing currency solutions. In 1988, JCM American began operating in the United States, first incorporating in New Jersey. It soon changed the face of the industry when it introduced the first-ever side-mounted bill validators for gaming devices. Today, it’s hard to imagine the industry functioning without bill validators.

In much the same way, other companies are bringing their visions and technology to the U.S. gaming industry. Today, the Association of Gaming Equipment Manufacturers, which began as an organization of U.S. gaming suppliers from its Las Vegas base, lists a growing number of members from outside U.S. borders. At last count, more than 20 percent of the current AGEM companies can trace their start or headquarters to other continents, and all are actively pursuing the U.S. as a land full of opportunity.

More Than Just Knowing The Lingo
Although each company has its own road to success in the U.S. gaming market, there are important steps to take, and equally, missteps to avoid in taking on this challenge.

For those who have been on the inside when a company enters a new U.S. market, it’s more than just a matter of knowing the language or adhering to a simple “think globally, act locally” process. Euphemistically, the American phrase that best describes what it takes is that you have to know not only “Where is city hall?,” but “Where is the mayor’s office?”

There is much to be learned from just some of the trials and tribulations of the companies that have been here and, unfortunately, have not done that initially.

Go Ahead, Blame The Messenger
Without doubt, one of the first stumbling blocks observed with several non-U.S. companies starting out here is their over-reliance on a plan that depends primarily on continuing to do what works in their home market, or other successful markets, and assuming it will work in the U.S.

Part of this is understandable—you go with what you know—and some of this can also be seen as the familiar “us against them” mentality of being in a new place where you have not had the opportunity to develop and trust new relationships.

Unfortunately, though, many times the blame for any initial non-response to the product line is heaped on the messengers, which can even be the unlucky company counterparts now living in the U.S., as well as their local advisers.

In the end, we find that the companies and products do succeed, but rarely without eventually either some re-engineering and re-direction, or major efforts to educate and market to a U.S. audience—or more likely, both.

Plan “B” Often Succeeds
For many companies, the original plan fails to deliver results for months—and even longer—before those in charge make a connection to what the market is saying and switch to an alternate plan. In this new plan, they will navigate a new path that adapts to the differences and unique challenges presented by a diverse and, often, less-than-welcoming marketplace.

The companies and their executives—many times only with outside expertise—begin to see the multitude of differences and distinctions within the overall U.S. market (land vs. riverboats vs. Native American) and segments within markets (tourist vs. locals). Add in differences within the segments (“hip” vs. “mainstream”—or “innovator” vs. “follower”).

In the end, the challenge of the U.S. market is best determined by what opportunity to tap, when, where and how. Only then does this become the land of opportunity for companies from all parts of the world.

Successful Entry
To outline a route to successfully enter the U.S. market in the following few steps is venturing to describe a path through very complex terrain using the most general of compass readings. This stripped-down course of action attempts to point only in the right general direction.

Being ‘Accepted’
The U.S. gaming market does not throw wide its arms to welcome newcomers. Barriers to entry, especially regulatory constraints, do make it tough for new competitors to break into this market.

To start, the product, even if successful in other, multiple markets, must be made suitable for the American market and its American audience. All the various markets or sub-markets and audiences, from buyers to players, have their own unique sets of standards and resistance to change.

Determining if a product is—or can be made—“localized” initially requires a review of the regulatory and licensing requirements, which vary not only by market and segment but many times by individual venue or casino. For example, even what’s allowed in one Native American casino may not be acceptable to another tribal venue or in a different state.

Beyond the approval process required for each individual product, many non-U.S. entities are surprised to learn the extent to which the companies themselves and individual staff must conform to a complex process of licensing and legal regulations to fully participate in our gaming environments.    Executives, especially the top and “C” level staff, will be subjected to scrutiny that has been known to offend the sensibilities of many foreigners.

Moreover, all business deals with U.S. customers also will need to adhere to the general terms and arrangements that are common practices here, but not easily embraced by those from other countries. These include free trials and other special sales and marketing required to launch a product offering. In addition, corporate ownership of casinos presents its own set of what it takes to succeed.

Almost too many other factors to list enter into the acceptance equation. For example, the “turnover” of games can be much shorter than what’s seen in other markets. As a result, a company will need to understand what pipeline of new games and products will be required—not only to get a chance to get into a casino, but to remain on the floor.    

Foreign companies also have introduced products that initially are just not what U.S. casinos or players are accustomed to nor have the inclination to want to understand. As result, it is just as important for the products themselves to be straightforward to understand.

On the flip side—and making this all the more difficult—is that at the same time, the products must display key differentiation and offer new or unique features to plaers and operators.

Over the years, foreign companies also have introduced remarkable innovations for the U.S. gaming market, which makes the stumbling blocks even more difficult. Players and intermediaries will need to be educated, most likely through intensive marketing. In this case, the innovators will need even more stamina and patience to endure what it will take to make this new-to-the-market product succeed. (Just ask someone who was with Cyberview Technology to explain what it took to take server-based gaming from an interesting concept into what casinos are planning for now.)

To compete here, as elsewhere, takes a realistic assessment of the complete offering from the customers’ viewpoint—and the ability to benchmark its ranking against the needs of a U.S. casino operator or player and what’s currently available.

Tapping into the right expertise to wheel your way through the entire
maze is probably best done in conjunction with the next step—having the right partner.

Howdy, Partner
That’s a uniquely American expression, and our way of underscoring how essential it is to have a local associate on hand who fully understands the U.S. gaming market and culture. This strategic resource will be called upon to show varied skills and talents in ushering a company through the entire process of critical business dealings and negotiations.

Depending on the need, this person functions as ambassador, guide, comrade in arms, chief confidante and experienced pilot who can fly solo when needed. It’s who to call when a key introduction is needed, and it’s who opens doors—even back doors. Look for experts who have experience in bringing foreign products to the U.S., and equally important, who already may be licensed.

The input of these advisers commences with crucial assistance in analyzing the various market entry options. For example, is the Native American market your easiest entry? If so, is your best option the large California market, the changing Florida segment or growing Oklahoma casinos?

In addition, this local partner will be of essential importance in keeping track of a changing market environment and be your lookout to avoid any conflicts with laws, trade, investment or taxes. His or her input will be critical in securing other local gaming authorities and experts as needed from time to time, for compliance and licensing or technical support.

You also should be able to look to your expert advisers to suggest what local support and staffing is needed even before any sales are being considered.

Not Lost In Translation
Simply stated, people won’t buy what they don’t
understand, and this is where your marketing makes
its mark.

On one hand, this does become the basic matter of translating materials into standard U.S. English. (Don’t spell it colour, because here, it’s color.) But that’s merely the proverbial tip of the iceberg involved in what’s meant by “translation.”

Research underscores how much can be lost or gained in true translation. Using actual business documents, studies have demonstrated that business buyers will not give full consideration to a product unless the company provides localized marketing materials that they can read and understand to the fullest. In real terms, products without properly translated materials stand a less than one-in-five chance of making it to the short list.

Of course, there is more to translation than easy-to-read English. It is the ability to interpret and render the true features and benefits of the offering in terms that are meaningful to a new U.S. audience. Here as in other markets, your company and product will need to overcome a wall of indifference and an all-too-typical reaction that “just because it works (name anywhere else) doesn’t mean anything to me.”

The right U.S. marketing experts will have the insight and input needed to recommend what it will take to “brand” your company within the U.S. market. Local experience and expertise should be tapped to ensure your worldwide brand resonates with the needs and requirements of the U.S. marketplace.

Through key connections and relationships with trade organizations, media and customers, your U.S.-based marketing consultants will assist in many facets of the plan, from helping identify potential prospects to generating overall interest in the company and its products.

Importantly, the local marketing experts should be experienced in working with corporate departments and have a keen understanding of how to become a seamless part of the overall marketing effort.

Roadmap
To truly succeed in the U.S. market, close monitoring and adjusting will be needed as the product moves from initial interest to seeking trial sites to actual rollout and ongoing installations. Product performance and market acceptance will need continual assessment.

These steps should ensure that the foundation for longer-term success is being built along with the introductory plans. Understanding the steps also should take some of the risk out of the equation, both in terms of time and resources, and ensure that realistic business targets are established and achieved. In the final measure, it gets the right product to the U.S. market quicker and hopefully inspires a higher level of confidence.

Roy Student is a longtime gaming and hospitality executive who currently utilizes his key expertise and experience as a sought-after consultant and speaker to the international casino and gaming industry from his base in Las Vegas. He has been the force behind the successful U.S. market entry for companies coming from Asia, Europe and South America. Student can be contacted at srsgsi@yahoo.com.

A marketing veteran also based in Las Vegas, Carolan Pepin has been working with companies from beyond the U.S. since her introduction to international business in Chicago with the Japanese conglomerate Panasonic. After being recruited to the gaming industry in 1996, Pepin worked for Aristocrat, Sigma Game and Cyberview Technology. Most recently, she has focused on helping an East European gaming manufacturer with its expansion into the American markets. Pepin can be reached via pepinmarketing@aol.com.

By GGB Staff   Tue, Jul 07, 2009

U.S. authorities froze more than $30 million in the accounts of payment processors who handle the winnings of online poker players.

The Justice Department has long held that online gambling is illegal, and as such, the U.S. attorney for the Southern District of New York instructed three banks—CitiBank, Goldwater Bank and Alliance Bank of Arizona—to lock down the accounts.

Arlo Devlin-Brown, assistant U.S. attorney for the Southern District of New York, faxed a letter to Alliance Bank June 5 saying accounts held by payment processor Allied Systems Inc. are subject to seizure and forfeiture “because they constitute property involved in money laundering transactions and illegal gambling offenses.”

Devlin-Brown also asked that the bank treat the funds “as legally seized” by the FBI, saying that the government has probable cause that the gambling payments of U.S. residents had been directed to offshore illegal internet gambling businesses.

“The FBI has authority to seize proceeds of specified unlawful activity without a warrant under exigent circumstances,” wrote Devlin-Brown.

A grand jury subpoena was also issued the first week of June seeking all communications, financial transactions and processing services between Allied and online casinos.

John Pappas, executive director of the Poker Players Alliance, called the government’s move an “unprecedented action” against online poker players. He said it constitutes a violation of the Fifth Amendment by depriving poker players of their property without prior notice and a hearing.

“The PPA will pursue every legal course available to ensure that poker players’ funds are not seized and their right to play poker online is protected,” Pappas wrote.

The Poker Players Alliance chairman, former New York Senator Alfonse D’Amato, said the frozen funds belong to individual poker players, not poker websites.
“This money should be immediately released by the Southern District to ensure that player payouts are not further disrupted,” he said.

By GGB Staff   Tue, Jul 07, 2009

The effort to curtail online gambling in Minnesota seems to have ended, with the state backing off of its request that internet service providers block access to online casinos for residents of Minnesota.

Following the announcement, a group of ISPs withdrew their federal lawsuit against the state challenging the order.

John Willems of the state’s Alcohol and Gambling Enforcement Division said, “Whether or not the service providers ultimately would have prevailed in court is unknown. I believe it may be more appropriate to resolve this problem by working to create clear and effective government policies concerning regulation of gambling.”

Minnesota was claiming that all online gambling in the state is illegal and notified a number of providers like AT&T, Comcast, DirecTV, Sprint/Nextel, Qwest, Verizon Wireless and Embarq, ordering them to restrict the sites people can visit.

In response, the Interactive Media Entertainment and Gaming Association filed suit in federal court.

By GGB Staff   Tue, Jul 07, 2009

GTECH Corporation announced that it is rebranding its interactive gaming and sports services division, formerly known as the New Media and Sports Betting division, as G2.

G2 brings together GTECH companies Boss Media, St. Minver, Finsoft and Dynamite Idea under one brand.

G2 provides a full range of end-to-end gaming services, game content and technology solutions to fully regulated customers including marketing, player relationship and risk management, fraud prevention, responsible gaming, and community functions.

“iGaming and sports betting are areas where we see tremendous growth for lotteries around the world,” said G2 President Atul Bali. “Our worldwide lottery and gaming industry experience, coupled
with our recent strategic acquisitions, uniquely
position us to lead the industry in these rapidly
growing gaming segments.”

By GGB Staff   Tue, Jul 07, 2009

The European Gaming and Betting Association applauded the European Commission’s detailed opinion against the French proposal to regulate both online and land-based gaming and betting.

While the legislation was supposed to help open up the French market, opponents say it does little more than protect the French
monopolies Française Des Jeux and PMU.

“The action by the commission underlines that online gaming and betting is a cross-border economic activity where EC legal requirements prevail,” said Maarten Haijer, EGBA director for regulatory affairs. “It makes no sense to create a local internet market in France. We welcome the commission’s action and are confident that France will reconsider its proposal to avoid litigation.”

Offending provisions in the draft include
limiting the opening of the gaming market to the online segment only, limiting the opening of horse betting to pool betting only and limiting the average payback ratio to the same level of those currently applied by historical operators.

Additionally, the proposed licensing system fails to take into account securities and controls already offered by other EU jurisdictions.

This is the third attempt to obtain approval for the draft legislation.

By GGB Staff   Tue, Jul 07, 2009

The Alderney Gambling Control Commission is going to change its licensing cost structure for companies that operate in its jurisdiction from a flat rate to a three-tiered structure based on net gaming revenues.

The current flat-rate €70,000 annual fee is being dropped for a system that is more beneficial to smaller companies and those just getting started.

The new structure will assess an annual fee of US$57,214 for companies generating less than $1.6 million in net gaming revenues; $114,429 for companies generating between $1.6 million and $8.1 million; and $228,858 for companies generating more than $8.1 million.

There has been some opposition from the companies that generated more than $8.1 million, but the AGCC is moving forward and expects to implement the new pricing system in the next few weeks after they are approved by the Alderney government.

By GGB Staff   Tue, Jul 07, 2009

The two groups battling to win the sole casino license for Nelson Mandela Bay in Port Elizabeth, South Africa, recently presented their proposals during two days of public hearings. The presentations featured a sentimental journey by current license holder Emfuleni, a surprise announcement from challenger Embo and heated reactions on both sides to each other’s plans.

Sun International, which owns part of Emfuleni, delivered an appeal to emotion by speaking of the thousands of jobs that would be lost if they are not chosen to continue to operate the Boardwalk Casino complex, according to local news source The Herald.

Emfuleni Resorts Director David Coutts-Trotter spoke strongly of the contribution the Boardwalk has made to the Port Elizabeth area.

“Over the last 10 years, ZAR 600 million was spent on the Boardwalk, 1,700 jobs were created overall and 24 million people visited the Boardwalk,” said Coutts-Trotter.

The attending public responded well to the presentation, which included still photos and video shot at the Boardwalk during the past decade. Boardwalk staff featured in recorded messages, talking about their reliance on the jobs provided to feed large families.

But a lawyer for challenger Embo, Michael White, criticized the presentation as playing on the public’s emotions and asked whether this was “the best Emfuleni could offer.”

Coutts-Trotter responded by saying, “The reality of it is that it is emotional. The casino is the largest contributor of jobs at the Boardwalk.”

However, the Emfuleni argument on job provision could be used just as strongly for the Embo proposal.

The challenger plans total investment of ZAR 1.8 billion for a casino, hotel, restaurants, retail shopping, a train station, cruise ship terminal, ice skating rink and IMAX theater, plus parking and child care facilities. The existing Boardwalk facility would be converted into a convention center capable of holding 4,000 people—eight times more than the existing meeting space at the Boardwalk complex.

The big surprise from Embo was its announcement to build a Hilton Hotel as part of its Mandela Bay Waterfront Casino project. The move took on weight when Embo CEO Ben Nyaumwe told the crowd that Deepak Seth, vice president of Hilton Europe, Africa and Middle East, was in attendance to give his support to the Embo bid.

The surprise may have cut both ways, however. Emfuleni stated that the proposal was not the same one that had been provided in writing in January. At issue was the tract of land for the planned development, which was not the same as that listed in the original proposal.

Nelson Mandela Bay Municipal Manager Graeme Richards said, “We are not in a position to prefer one application over another. Both applications have their own merits and express wishes to develop the city in a positive way.”

Richards added, “We hope there will be clauses that the applicants carry out their plans subject to adhering to municipal regulations.”

The successful bidder is expected to be announced in August.

By GGB Staff   Tue, Jul 07, 2009

Isle of Capri Casinos, Inc. will continue to operate the casino at Our Lucaya Resort at Freeport, Grand Bahama, at least through the end of August. Under certain circumstances, the operator could extend the period by another two months, to allow a new operator to receive all the necessary approvals.

The agreement between Isle of Capri, the government of the Bahamas and Hutchison Lucaya Ltd., which owns the resort, also has Isle of Capri assisting in the search for a new casino operator. Several operators have shown interest, and the final decision will be made by the government and the resort owner.

Paul Keller, senior vice president and chief development officer at Isle of Capri, said, “We have worked hard to reach a mutually agreeable conclusion with the Bahamian government, and we truly appreciate all of their hard work on behalf of their citizens to put a plan in place with the goal of a seamless, timely transition.

“Moving forward, our goal is to fulfill our own strategic plan while helping to ensure that a first-class gaming operation continues on Grand Bahama and that a change in management is as simple as possible for the employees at the facility, who have continued to work hard and prove their dedication through this process.”

In early March, Isle of Capri announced it would close the casino at the end of May. The new transition agreement is seen as a win for over 200 employees who would have been out of work.

The move is part of Isle of Capri’s strategy to focus on its domestic U.S. operations. Earlier this year, the company exited its casino at Coventry in the U.K.

By GGB Staff   Tue, Jul 07, 2009

The Gran Casino Los Angeles in the capital of Bio-Bio province, Chile, has opened its new five-star hotel within a year after the start of gaming operations.

The casino is the first development in Chile for worldwide operator Casinos Austria International.

A gala celebration was held to christen the new 90-room property. In attendance were VIPs and dignitaries that included local office-holders and CAI Chairman Karl Stoss, Austrian Lotteries Director Bettina Glatz-Kremsner and Casinos Austria Maritime President Alexander Tucek.

The development includes a state-of-the-art conference center for 500 delegates, a luxurious ballroom for 260 and Restaurante 565, which serves the very best in Chilean cuisine. There also is a spacious spa with steam room, sauna, Jacuzzi, indoor and outdoor pools and fully equipped gym.

The casino has 10 gaming tables and 200 slot machines.

By GGB Staff   Tue, Jul 07, 2009

The excitement in Macau last month wasn’t limited to the opening of the City of Dreams (see cover story on page 24). Across the street at the Venetian Macao, the leaders of the Asian gaming industry gathered to honor Macau gaming pioneer Stanley Ho and attend G2E Asia, the leading gaming trade show and conference on the Pacific Rim.

It was the opening ceremony that garnered the most attention. Hundreds of gaming executives and a swarm of media showed up to watch Ho accept the Gaming Visionary Award, presented annually by G2E. He was joined by much of his family, including daughter Pansy—who recently was deemed an “unsuitable” partner for MGM Mirage in MGM Grand Macau by New Jersey regulators—and son Lawrence, who opened Melco Crown’s City of Dreams two days before. Also attending the ceremony was Macau Chief Executive Edmund Ho (no relation).

The major players in the worldwide gaming industry were present, as attendees and on the exhibit floor. More than 130 companies erected stands on an exhibit floor that exceeded 150,000 square feet. More than 4,000 attendees representing in excess of 70 nations enjoyed the opportunity to experience the uniquely Macanese experience and networking events that gave attendees chances to mingle with the industry’s top executives.

Courtney Muller, group VP at Reed Exhibitions, which along with the American Gaming Association produces the event, said the economy was a focus of the G2E Asia.

“Tough economic times are hard for any business,” she said. “In the case of events we have additional challenges because there are so many factors that contribute to a company’s participation as an exhibitor and equally as many factors for the visitors who attend the events. Our goal this year is to deliver a stellar event to the market, even though the event may be smaller in size.”

Frank J. Fahrenkopf, Jr., president and CEO of the American Gaming Association, said the extensive conference program is a key to the show’s success.

“The new conference content at G2E Asia 2009 has been designed by the industry, for the industry, to provide the unique insight and outlook that will help industry professionals succeed in the Asian markets and beyond,” he said.

Some of the most popular seminar sessions included a gaming certificate program presented by Macau University and the University of Nevada, Las Vegas. Speaking at the keynote luncheon for the program was Lawrence Ho, who offered attendees the perspective of the first day of operation for City of Dreams and the plans for its future. He expressed confidence in the future of Macau and said the resort will provide what the city’s visitors want most.

Attendees also were enthusiastic about topics including poker in Asia, the state of table games and slot machines in the region, marketing in a down economy, updates on gaming legalization in Asia, the future of integrated resorts and much more.

News was broken at the show when Harrah’s Asian chief, Michael Chen, declared that the operator is actively seeking a license in Macau, as well as other regions in Asia. He said Harrah’s will be an active bidder in both Taiwan and Japan, should gaming become legal there.

MGM Mirage President of Global Gaming Development Lloyd Nathan revealed that MGM Mirage is actively looking to open a casino in Taiwan, is interested in the Entertainment City project in the Philippines and would be very bullish if Japan agreed to legalize gaming.

IGT said it expects to be a major supplier to the two casinos planned for Singapore.

“We expect the market share in Singapore to be higher than Macau,” Kurt Quartier, vice president of IGT’s international casino markets, said.

At the ceremony honoring Stanley Ho, daughter Pansy was surrounded by media asking how she plans to respond to the negative New Jersey report. She said that once MGM Grand makes its response, she will be actively involved in clearing her name.

Stanley Ho himself responded obliquely to the criticism of his daughter, Pansy, during his acceptance speech.

“The fact that SJM is listed on a major stock market (in Hong Kong) has provided a new level of transparency of gaming in Macau and helped to clear up the misconceptions about the industry that some people had in the past,” he said.

By GGB Staff   Tue, Jul 07, 2009

As the worldwide credit freeze begins to thaw, Las Vegas Sands is looking to get back to work on its sidelined $12 billion Cotai Strip development.

LVS Asia President Stephen Weaver told Bloomberg, “There are obviously improving conditions in the capital and financial markets and we intend to take advantage of that as well as we can.”

In recent months Sheldon Adelson, head of LVS, has been talking with potential investors about getting involved in LVS’ existing Macau properties. Now he is looking to raise capital to resume work on the massive Cotai Strip development, and said that he spoke with two construction companies that may invest in the project.

Adelson may have received fresh inspiration from the recent opening of the new Melco property, City of Dreams. The $2.1 billion hotel casino stands adjacent to a section of the interrupted LVS project.

“It’s fabulous; I am impressed,” said Weaver of City of Dreams, upon attending the opening.

Weaver has his own reasons for wishing the competitor property well.

Said Weaver, “The more critical mass there is, it’s very clear that the more people who are attracted to the Cotai Strip.”

By GGB Staff   Tue, Jul 07, 2009

Malaysian gaming group Genting Berhad last month invested $100 billion in MGM Mirage. The investment gives Genting a 3.2 percent stake in the operator. Experts say the company wants even more, and is eying an entry into the Macau market by purchasing MGM’s half of a joint venture with Pansy Ho.

MGM is under pressure to re-evaluate the partnership in light of the negative report issued by the New Jersey Division of Gaming Enforcement, to be considered soon by the state’s Casino Control Commission. MGM says it disagrees with the DGE report and will vigorously defend the relationship with Pansy, the daughter of Macau gambling magnate Stanley Ho.

The stake was offered under a new $1 billion public offering issued by MGM Mirage last month. The offer was concluded last month with investors subscribing to nearly the full amount.

MGM Mirage considers the Genting investment as a good thing. “We take this as a sign of great confidence in our company,” said Alan Feldman, senior vice president of public affairs for MGM Mirage.

Genting has been anxious to gain a stake in Macau, where the casino boom of the mid-2000s has eased, but promises to surge again. A spokesman for the company played down the investment as merely an interest in gaming on an international basis.

“We are constantly looking to broaden our portfolio of strategic investments and strengthen partnerships around the world,” said Justin Leong, head of strategic investments and corporate affairs for Genting.

By GGB Staff   Tue, Jul 07, 2009

The problem of the six casino vessels in Goa that have been the target of the opposition party and social protests for months may have an easy answer after all. Or not.

“Out of sight is out of mind,” said Goa Chief Minister Digambar Kamat during the second anniversary celebration of his government. “Right now people are protesting because they see the casinos in the Mandovi River. Once they move away out of sight into the sea, I don’t think there will be any problem.”

The comments of the chief minister were not well received by the opposition party BJP.

“It only speaks about how casual the chief minister is in his approach,” said Govind Parvatkar of the BJP. “He is only pulling wool over the people’s eyes. Administration has never been a serious matter in the Digambar Kamat regime.”

The comments were neither received well by the casino operators, who want to remain in the river. The Goa government recently ordered the boats to move from the river to the less-hospitable Aguada Bay. A new organization, the Association of Off-Shore Casinos, has begun to lobby for favorable legislation and has pointed out that not only jobs, but tourism depends on the vessels. Some of the businesses boosted by the casino operators include airlines, hospitality, tour operators, entertainment, taxi operators, food and beverage suppliers (both retail and wholesale), equipment servicing and repairs, software and computer services, electronics and telecommunications, printing, publishing and advertising.

By GGB Staff   Tue, Jul 07, 2009

Moving ahead with plans for casino development, the government of Taiwan is looking to hire a consultant to assist in the planning of a casino resort on one of the nation’s outlying islands.

The consultant is expected to plan a casino resort that will require an investment of NT$60 billion—about $1.8 billion.

The government is expected to create a new agency at some future date that will eventually run the casino business. However, the property first will be built and managed by an experienced operator.

Dow Jones cites and unnamed tourism ministry official who said, “We are aiming to conduct the tender in June and select the consultant as early as July.”

Planning will take about one year, the official said.

By GGB Staff   Tue, Jul 07, 2009

Pennsylvania’s Mount Airy Casino Resort announced that Atlantic City casino veteran George Toth has been named the resort’s new CEO.
   

Toth, who was the last president of the Sands Atlantic City before it was sold to Pinnacle Entertainment, will take over for Joe D’Amato, who stepped down earlier this year. He takes the reins of a property that is in transition, as original owner Louis D’Amato transfers ownership to his daughter under a deal reached with county prosecutors in exchange for dropping perjury charges against him.
   

Toth said he plans to take advantage of the natural tourist amenities surrounding the resort, which sits in Paradise Township in Pennsylvania’s Pocono Mountains resort region. “I see myself as a person to manage a business to get a better return on the assets,” Toth told the Pocono Record. “Some have not realized their potential. It hasn’t marketed its resort asset enough. We’re just beginning to.”
   

Asked how he will operate in a 60 percent tax environment after enjoying Atlantic City’s 9 percent tax, Toth said he will do it through cost control and aggressive marketing. “You operate efficiently by controlling the costs. You continue to spend on the marketing side,” he said.

By Frank Fahrenkopf   Tue, Jul 07, 2009

As good corporate citizens, we in the gaming entertainment industry work hard to promote responsible gaming and implement education and awareness programs that help our employees and patrons keep it fun. Our upcoming annual observance of Responsible Gaming Education Week, scheduled for August 3-7, provides a unique opportunity to increase awareness about the important actions we take year-round to encourage responsible gaming practices among all our stakeholders.
   

This year, the American Gaming Association celebrates the fifth anniversary of the first implementation of the AGA Code of Conduct for Responsible Gaming, one of the pillars of the industry’s commitment to responsible gaming education and practices. To celebrate this milestone, RGEW 2009 will be themed “Know the Code,” and will emphasize the importance of this lasting industry pledge to employees, patrons and the public to integrate responsible gaming practices into every aspect of our daily operations.
   

In the years since the Code of Conduct was first implemented, the vital role of responsible gaming has become increasingly magnified by our industry and its stakeholders.
   

This increased attention has perhaps been most evident with the continued expansion of gaming in the U.S. and worldwide. Here at home, regulators are making responsible gaming a priority from the very beginning, as evidenced by two of our newer commercial gaming jurisdictions—Pennsylvania and Kansas—where casino operators are required to submit a detailed responsible gaming plan as part of their applications to obtain
operating licenses.
   

Responsible gaming also is steadily gaining a higher profile across the international gaming scene. We have long known that different jurisdictions around the world implement diverse approaches to responsible gaming that are heavily influenced by the cultural and societal realities of each jurisdiction, as well as the role gambling plays in each society. For some markets, such as Asia, responsible gaming still remains a relatively new concept.
   

I believe the increased globalization of the industry, facilitated by international partnerships and cross-border business ventures, will continue to heighten the focus on responsible gaming. And, as it has since its implementation, the AGA Code of Conduct for Responsible Gaming can serve as a jumping-off point to help our colleagues around the globe develop and tailor their practices to best serve their employees and patrons.
   

One of the attributes that makes the AGA Code of Conduct a valuable model for other countries is its firm grounding in scientific research on gambling disorders and responsible gaming. Since the founding of the National Center for Responsible Gaming in 1996, the AGA and its members have maintained a strong commitment to supporting the highest-quality scientific research in the field, and to using the results of that research to implement practical, real-world solutions for preventing problem gambling and promoting responsible gaming.
   

The field of research—and the practical programs it has informed—has evolved considerably during the last decade, thanks in large part to the outstanding work of Dr. Howard Shaffer and his team at the Division on Addictions at Cambridge Health Alliance, a teaching affiliate of Harvard Medical School, and the continued support of the NCRG.
   

Since the implementation of the Code of Conduct, NCRG-funded research has provided insight on a broad range of topics, including how gender, age, culture, ethnicity, proximity to a casino and other factors may affect an individual’s chances of having a gambling problem. Research also has explored effective prevention and treatment methods for gambling disorders. The results of this research has, in turn, helped further refine training programs for employees and education programs for the public.
   

This year, the NCRG ushered in a new era of research on gambling disorders by establishing the nation’s first NCRG Centers of Excellence in Gambling Research at Yale University and the University of Minnesota. Supported through multi-year grants provided by the NCRG, the Centers of Excellence will conduct long-term innovative and multi-disciplinary research and education programs about gambling disorders.
   

At Yale University, the Center of Excellence will examine the various factors that influence the treatment of gambling disorders using a clinical trial to investigate whether the drug naltrexone will be effective in a “real-world” clinical setting. The center at the University of Minnesota will develop a model of impulsivity that will enable the identification of young adults at risk for developing pathological gambling.
   

In addition to supporting groundbreaking research, the NCRG works to increase education and awareness about gambling disorders and responsible gaming. One of the ways the NCRG has increased the effectiveness of its education programs has been moving its annual conference to coincide with Global Gaming Expo, the gaming industry’s premier international trade show and conference event.
   

Since 2007, the NCRG has partnered with G2E to create NCRG at G2E conference sessions that have helped increase understanding of these issues, spark dialogues about best practices, and facilitate partnerships to address gambling disorders and promote responsible gaming here in the U.S. and abroad.
   

While attitudes and understanding about responsible gaming have evolved since the Code of Conduct’s first implementation, the code continues to serve as an important model for addressing this issue and form the basis of responsible gaming programs worldwide.
   

Amid the many changes that have occurred since the code’s first implementation, one thing that has remained the same is the importance of gaming industry employees having a strong understanding of the commitments in the code, as well as of their employers’ specific responsible gaming policies and procedures. Responsible gaming impacts every aspect of the gaming business, so it is important for employees to understand the role it plays in both their jobs and their lives.
   

RGEW presents the ideal opportunity to remind employees about our industry’s and your company’s long-term commitment to this issue. Together, we can continue to build on the progress of the past five years with a renewed purpose to know the code and keep it fun.

By GGB Staff   Tue, Jul 07, 2009

Electronic table game supplier TableMAX Gaming announced that it has signed a turn-key manufacturing agreement with Creative Electronics and Software to produce complete TableMAX
systems.
   

“We are pleased to partner with CES as demand for our product continues to increase,” said Stephen Crystal, CEO of TableMAX. “CES gives us the ability to provide significant quantities of TableMAX ETGs and will enable us to easily meet the growing demand from our customers each month.”
   

CES has scalable facilities with the capacity to take production from 10 to 50 TableMAX systems per month. CES is headquartered in South Elgin, Illinois, and maintains an assembly plant in Las Vegas.
   

“We are proud to be chosen by TableMAX to manufacture their innovative ETG systems,” said Robert Kowalski, president of CES. “This promises to be a great long-term partnership of CES’ manufacturing capabilities—which emphasize high-quality electronic and mechanical product assembly and testing—and TableMAX’s top-shelf gaming products and growing reach.”

By GGB Staff   Tue, Jul 07, 2009

System company Table Trac, Inc. announced that its patented Casino Trac casino management system will be installed in the Thlopthlocco Golden Pony Casino in Okemah, Oklahoma.
   

The Casino Trac system was designed specifically for Oklahoma, combining information drawn from both Class II and Class III games into a single database.
   

“We are pleased and honored to be chosen by the Thlopthlocco Golden Pony Casino to provide the products and services covered by this agreement,” said Chad Hoehne, Table Trac president and CEO. “The Golden Pony has one of the most beautiful and accessible locations in Oklahoma. We look forward to working with them.
   

“Since our successful development of the Class II and Class III integration in 2006, designed specifically for our Oklahoma casino customers, we have been providing consistent operational reliability and continue our commitment to what we describe as cutting the cost of cutting edge. Golden Pony is the 12th location in the Oklahoma jurisdiction to become a customer.”
   

Added Carl Noon, general manager of the Golden Pony, “Given the competitive nature of our market, with 66 casinos within 100 miles of our location, the combination of the system’s innovative promotional modules as well as price and value considerations made Casino Trac the obvious choice.”

By GGB Staff   Tue, Jul 07, 2009

Gaming authorities in Singapore have officially recognized Gaming Laboratories International as a fully qualified testing laboratory for gaming devices.
   

Singapore’s Casino Regulatory Authority designated GLI with the status of SRTL, for Singapore-Recognized Test Lab, qualifying the organization to provide testing services for gaming equipment placed at casinos within the Singaporean
jurisdiction.
   

GLI will test games, systems and progressives against standards established by the CRA, and GLI will test games and systems for interoperability.
   

“We are honored to achieve the status of an SRTL,” said Ian Hughes, director of global engineering and client services for GLI. “We are glad to have participated in the CRA’s closed consultations with the gaming industry for the Singapore Technical Standards on slots and systems. GLI wishes to thank T. Raja Kumar, CEO of the CRA, and his team for their professionalism throughout GLI’s approval process.”
   

To be recognized, GLI had to prove, among other items, its accreditation with ISO17025, its internal compliance processes and its experience in testing gaming equipment for major gaming jurisdictions.

By GGB Staff   Tue, Jul 07, 2009

The Gaming Standards Association announced the addition of six new members.
   

Tech Results of Las Vegas and the Global Gaming Research Center of Macau have joined as Gold members. Joining as Silver members are the Western Canada Lottery Corporation, California-based Oracle and Zest Gaming SpA of Italy. De Vocht Expert Services of Belgium is GSA’s newest Advisory Member.
   

In addition to the new members, current GSA member company BCLC of British Columbia has upgraded its membership to Gold.
   

“The growth in membership demonstrates the acceleration of adoption of GSA standards in the gaming industry,” said GSA President Peter DeRaedt. “We continue to welcome our new members from around the globe to GSA. Our membership diversity underscores the wide-reaching impact and flexibility of our work and our standards.”

By GGB Staff   Tue, Jul 07, 2009

Table game supplier TCS John Huxley has set up sales and marketing operations, along with a complete showroom, in Singapore, creating what will be a new hub for the supplier’s Southeast Asia sales.
   

Over the past three years, TCS John Huxley Asia has established its presence in the region by introducing a new office in Macau and investing in local manufacturing and printing facilities.
   

Tristan Sjöberg, managing director for Asia, relocated to Singapore to set up a new hub for the region which will service and support the large-scale projects now under way in Singapore, as well as existing casinos in Malaysia, Myanmar, Laos, Cambodia, Korea, India and Nepal.
   

The new office combines sales, technical support and service as well as incorporating a fully equipped showroom that will display the latest TCS John Huxley product offerings.
   

“There’s a reason why 3,000 companies have their regional headquarters in Singapore,” said Sjöberg. “It’s a very good business environment to base yourself from and has a large talent pool of technical and administrative staff. Singapore will be setting the blueprint for gaming in Asia with many of the surrounding countries looking for guidance in terms of developing a new market from scratch.”

By GGB Staff   Tue, Jul 07, 2009

Signage supplier Gaming Support announced that it has reached a definitive sales agreement with Regency Entertainment covering the purchase and installation of Gaming Support signage for the expansion of Regency Casino Mont Parnes in Athens, Greece.
   

Under the terms of the agreement, Gaming Support will provide all custom signage to be featured within the facility. “We’re honored to be awarded this scope of work,” said Nick Hogan, Gaming Support’s VP of sales and business development. “The package selected features a number of cutting-edge design components, including full-scale JackpotJunction XL integration, animatronics and a large body of three-dimensional elements. We look forward to delivering to our valued client what is sure to be a spectacular showcase.”
   

“As Gaming Support has demonstrated through its many signage projects with Lucien Barrière, Casinos Austria, Holland Casino and multiple slot manufacturers, the team possesses the creativity and material capacity to deliver top-tier work at attractive price points,” stated Evaggelos Dimou, slots director at Regency Casino Mont Parnes.

By GGB Staff   Tue, Jul 07, 2009

PureDepth, Inc., the display company that produced the “Multi-Layer Display,” or MLD, technology used by International Game Technology in a series of slots with 3D video displays, announced the creation of a Japan-based business unit that will expand the reach of the technology to new applications both inside and outside the gaming industry.
   

IGT used PureDepth’s MLD technology to create the “REELdepth” series of slot machines, which use the technology—it involves placing two LCD displays on top of each other to create a realistic 3D effect—to simulate spinning reels in multi-game units.
    IGT’s new multi-game machines look like reel-spinners, but players can choose between three-reel, four-reel and five-reel games, and the games themselves feature animation on the reels and 3D second-screen bonus events.
  

PureDepth held a press conference in Tokyo to announce that the MLD technology will be used to create a variety of image displays that are not possible with existing LCD technology. The new Tokyo office will market a variety of displays under a license contract with Sanyo Electric Co. Ltd., and in a separate agreement with Abilit Corporation, which is using the panels for gaming machines in the Japanese pachislo market.

For the future, PureDepth officials say they will introduce the MLD technology into mobile gaming devices and smart phones. “We have already prototyped a smart phone equipped with the MLD,” said Yutaka Nagata, general manager of PureDepth Japan.

By Frank Legato   Tue, Jul 07, 2009

I’ve now got a new reason to recover some of the dough I’ve happily handed over to casinos: interior design.
   

If I see a lamp in the wrong corner, or if the room is facing the wrong direction, it apparently affects luck. No wonder I’ve crapped out on four-to-the-royal about a thousand consecutive times. The damn lamp was out of place!
   

You may think I’m just being my usual wacky, madcap self here, but it’s not as far out as you think. In fact, a guy from Taiwan is threatening to sue the Venetian in Las Vegas to recover $2 million he lost. The basis for his threat? According to the Associated Press, he says the casino “used feng shui to cause his losing streak.”
   

The guy’s name is Yuan, but that surname is the only identification he’s given. So, he’s kind of like Cher.
   

Anyway, according to the report, Yuan charges that “the Venetian dug a one-meter square hole on the wall of the presidential suite he was staying in April last year and covered it with a black cloth.”
   

He also says the Venetian put two white towels in front of his suite, and, the story says, “turned on two large fans without notifying him.”
   

The bastards!
   

Yuan says that after he discovered these dastardly actions, his luck went south. He went from winning $400,000 to losing $2 million.
   

“We Chinese drape black and white cloths only when there is a death in the family. It is such a taboo for regular people, let alone for the gamblers,” he was quoted as saying.
   

Half of the $2 million debt was incurred while playing on credit. He wants the Venetian to cancel the entire debt, or he’ll sue, claiming “feng shui sabotage.”
   

Now, I have a lot of respect for Asian traditions, and I honor anyone’s right to believe in the many superstitions related to gambling that the Chinese have. I even got really excited last year when Sam’s Town gave me Room 888. (The Chinese lucky number 8 didn’t work for me. It turns out my lucky number is 3,467. And it almost never comes up.)
   

But please.
   

I honestly find it hard to envision a Venetian maintenance man with a drill, lying on his belly making a hole in the wall of a presidential suite because his boss told him that a Taiwanese guy was winning too much.
   

“Sal, go up to Suite 432 and drill a hole in the wall, will you? Oh, and make sure you cover it with a black cloth. Wait, do you think that’s enough? No, I know! Put a couple of towels in front of his suite. That should do it. OOOH! And FANS! Turn on the fans! Yeah!
   

“See how you like that, Mr. Lucky! Nothing left to do but sit back and collect the money!”
   

As I said... Please.
     

You want to know the strangest part of this whole story? The Venetian is reportedly planning to give the guy some money. They plan on paying him off with $100,000 in cash and another $100,000 in chips, if he’ll take it. They call it a “reasonable” solution.
   

Come on! That does it. The next time I lose—and, by the way, I’m sure it won’t be long—I’m suing.
   

“Your honor, my client was winning all night at video poker, and began losing only after the casino intentionally placed a comic book in front of his hotel room door—let the record show it was Archie’s Pal Jughead—and placed a napkin soaked in Smucker’s Apple Butter facing East in front of my client’s bathroom. Clearly, this was an intentional and malicious breach of trust on the part of the casino.”
   

Naah. I’m gambling in the hundreds at most on a given night. I suppose I have to be throwing a couple of mil on the green felt to really have a chance at success with the feng shui defense.
   

Somehow, though, I don’t think Yuan is going to accept the settlement of a couple hundred grand. That means this will go to court.
   

Then the real fun begins. I’d be interested to see how a Nevada jury feels about a casino’s intentions with respect to drilled holes and towels in front of a door.
   

Yeah, I know. The way casinos are hurting for high rollers these days, the Venetian may increase its settlement offer, just to get Yuan’s business back.
   

Then, of course, I’m going forward in court with my Smucker’s Apple Butter argument. Hey, feng shui is feng shui, right?
   

Who’s Yuan’s lawyer?

By GGB Staff   Tue, Jul 07, 2009

The American Gaming Association announced that Michael Gaughan, a seminal figure who has developed many of the casino resorts most popular with Las Vegans, will be inducted into the Gaming Hall of Fame this November during Global Gaming Expo in Las Vegas.
   

“For more than 40 years, Michael has been a major figure in the gaming industry, and the casinos he has developed and operated have helped to make Las Vegas what it is today,” said Frank J. Fahrenkopf, Jr., president and CEO of AGA. “His contributions to our industry are truly outstanding, and his induction into the Gaming Hall of Fame is long overdue. We are honored to add his name to the long list of legends who have made this industry great.”
   

Michael Gaughan, whose father Jackie also is a member of the Hall of Fame, is a lifelong veteran of the gaming entertainment industry. In 1965, he became an owner, and ultimately, the casino manager of the El Cortez Hotel. His tenure there ended in 1972 when he opened the Royal Inn Casino. After selling the Royal Inn, Gaughan began developing the stable of casinos that would make him a leading figure in the Las Vegas market, including the Barbary Coast Hotel, the Gold Coast Hotel, the Orleans Hotel, the Suncoast Hotel and the South Point Hotel, Casino and Spa.
   

In 2004, Gaughan sold Coast Hotels and Casinos to Boyd Gaming Corporation but remained on as chief executive officer. Today, he owns and operates the South Point, a successful event venue and resort that is the anchor of Las Vegas’ burgeoning “South Strip.” He also operates the McCarran Airport slot concession and the Casino Queen riverboat in East St. Louis, Illinois.
   

Gaughan will be inducted into the Gaming Hall of Fame on Wednesday, November 18, during the State of the Industry keynote event at G2E, and honored again later that evening during the G2E Chairman’s Reception at Encore Las Vegas.
   

Induction into the Gaming Hall of Fame is the highest honor accorded by the gaming-entertainment industry. Each year, individuals who have distinguished themselves through significant contributions to the industry receive this distinction. More than 60 people have been inducted into the Gaming Hall of Fame since its inception in 1989.

By GGB Staff   Tue, Jul 07, 2009

Empire Resorts’ board of directors recently picked lawyer and real estate developer Joseph Bernstein to be its chief executive officer for a term that will end December 31.
   

Bernstein owned Monticello Raceway through his company Catskill Development LLC, but sold the track to Empire Resorts in 2004 after plans for a Class III tribal gaming facility fell through.
   

Bernstein was brought on board to assist Empire Resorts to eliminate debt and stay out of bankruptcy.
   

“Progress has already been made by the company as we have rapidly improved cash flow, cut expenses and enhanced productivity, but it is imperative that we have a strong leader like Joe Bernstein who will aggressively pursue initiatives to address the company’s long-term future,” said Empire Resorts Lead Director James Simon.
   

The company also named Nancy Palumbo, former director of the New York State Lottery and president of Green Planet Group, to its board as an independent director.

By GGB Staff   Tue, Jul 07, 2009

Leading slot manufacturer International Game Technology announced that it has hired Chris Satchell, chief technology officer for Microsoft, to fill the CTO position at IGT.
   

Satchell, who will oversee IGT’s Information Systems division, along with its R&D and software architecture group, spent 17 years in the video game and technology industries. At Microsoft, he was CTO for interactive entertainment business, responsible for technical strategy and execution across the video gaming business including Xbox, Games for Windows, Xbox LIVE and Microsoft Game Studios as well as future platform incubations.
   

“Chris brings a long history of success and great depth of technical expertise to IGT,” IGT President and CEO Patti S. Hart said. “He will play an instrumental role in shaping our strategic and tactical technological vision and refocusing our internal technology support on many levels within the organization.”

By GGB Staff   Tue, Jul 07, 2009

Michael A. Fedorko, the former top state police official who has been a member of the New Jersey Casino Control Commission since 1999, is leaving his position on the state’s main regulatory agency to take a job with Port Authority of New York and New Jersey.
   

Fedorko, whose second five-year term expires in August, would not be eligible for reappointment to the board. He will become director of public safety for the bi-state agency that operates airports and other transportation facilities in New York and New Jersey.
   

Fedorko, 64, was nominated to the Casino Control Commission by former Governor Christie Whitman. He was with the New Jersey State Police 30 years, including a stint as acting police superintendent. His resignation leaves the Casino Control Commission at three members, two short of its mandate under the law. Governor Jon Corzine has yet to appoint a replacement for Ralph Frulio, who retired from the commission last year.

By GGB Staff   Tue, Jul 07, 2009

CryptoLogic announced that David Gavagan will serve as the company’s new independent, non-executive chairman following the annual shareholders’ meeting June 3.
   

Gavagan joined CryptoLogic’s board as an independent non-executive director in June 2008. He succeeds Robert Stikeman, who steps down as chairman but continues as a non-executive director.
   

“I am honored to succeed Robert Stikeman, who helped pioneer the internet gaming industry and provided strong leadership as CryptoLogic’s chairman for the past six years,” Gavagan said. “As CryptoLogic enters a new stage of its development, today’s announcement reflects our continued commitment to the highest standards of corporate governance and to long-term value for our
shareholders.”
   

CryptoLogic also announced plans to appoint James Wallace as an independent, non-executive director at the annual meeting. Wallace’s appointment, contingent on shareholder approval, will increase the total number of independent directors to four.

By GGB Staff   Tue, Jul 07, 2009

PokerTek appointed Mark Roberson acting CEO of the company after former CEO Chris Halligan resigned May 29. Roberson has been PokerTek’s CFO and treasurer since October 2007.
   

“Mark has proven himself as a capable leader, and we feel he is the right person to lead PokerTek at this time,” said PokerTek Chairman Lyle Berman. “The top priority for the management team under Mark’s leadership will be to accelerate PokerTek’s progress toward cash-flow-positive operating results.”
   

Roberson will continue to serve as CFO and treasurer until PokerTek finds a replacement for the position.

By GGB Staff   Tue, Jul 07, 2009

The battle between the rival components of casino culinary labor union UNITE HERE gained intensity last month as Bruce Raynor, the union’s general president, resigned.
   

Raynor also accused his opponents of breaking into his office and trying to steal sensitive files. He claimed he was forced out of his position and said he will take another top spot with the newly formed Service Employees International Union.
   

“The situation at UNITE HERE has devolved from sporadic hostile actions to a sustained attack that represents a direct threat to the welfare of our members,” Raynor told the Associated Press. “Our union is in total chaos.”
   

UNITE HERE represents a number of hospitality workers and casino food and beverage employees in Atlantic City, and is the parent union of the Culinary Workers Union Local 226 in Nevada.
   

The group was formed five years ago with the merger of the Union of Needletrades Industrial and Textile Employees and the Hotel Employees and Restaurant Employees International Union. An internal power struggle led Raynor to declare the merger a failure last year, at which time 150,000 members voted to leave the union and form a new union called Workers United.
   

Raynor was going to leave his position later this summer, but said the ongoing problems forced him to move up the date of his departure.
   

An internal memo that appears to have been taken from Raynor’s office in May says Workers United is losing more than $300,000 a month. Raynor said that John Wilhelm, president of hospitality at UNITE HERE, is trying to create a fight with SEIU.
   

“The actual fight is between two parts of UNITE HERE because there’s a failed merger,” Raynor said. “The fact is Andy Stern and SEIU play a very minor role in all this.”
   

In keeping to the high road, Wilhelm issued a terse statement about Raynor’s departure.
   

“While we recognize the good news of his resignation, we are under no illusion that SEIU and Raynor have given up their quest to steal UNITE HERE’s hotel, gaming and food service jurisdictions,” he said.

By Roger Gros   Tue, Jul 07, 2009

Some say gaming law is as much as an art as it is a science. If so, the Nevada law firm of Lionel Sawyer & Collins is the Louvre and Ellen Whittemore, the Mona Lisa. Her clients run the gamut of the huge gaming corporations from MGM Mirage to the Onyx Group of companies (led by former MGM president Alex Yemenidjian), which has taken over the Las Vegas Tropicana.
   

Prior to joining the firm, she was Nevada’s supervising deputy attorney general for the gaming division. Whittemore is the primary author of three Nevada gaming regulations. She successfully prosecuted individuals who were then included in the “Black Book” exclusion list, and was lead counsel in the case that established that gaming devices could not display “near misses” to slot customers. Whittemore spoke with Global Gaming Business Publisher Roger Gros at her Las Vegas offices in June.

GGB: Through the years, Lionel Sawyer & Collins has become the “go-to” law firm in Nevada. Does that put a little extra pressure on you when you appear before a gaming commission or in court?

Whittemore: I think it does. I think we have very high standards at this law firm, and they were established by our founding partner, Sam Lionel, who, now in his 90s, is still probably one of the best litigators in this state. Of course, Grant Sawyer was the governor who really established the current system of gaming control. Those are big footsteps to follow. And of course you have Bob Faiss, who was just acknowledged dean of gaming law. So we tend to be selective in the matters that we appear on. We understand that our obligation is not just to our clients, but also to the state of Nevada, so it does put a little pressure on you.
   

As gaming counsel, we have a responsibility to effectively advocate for our clients, but I also think we have a responsibility to dissuade those who might be not be suitable for licensing from even filing that application in the first place.

Right out of law school, you got into the public sector and eventually became deputy attorney general. Do you think that helped you, being on that side of the fence, now that you’re working for clients with the state?

I think it’s absolutely invaluable. I was a supervising deputy attorney general representing the Gaming Control Board and the Nevada Gaming Commission, and that is experience you don’t get coming to a law firm. A lot of gaming law is instinct. A lot of it is understanding that although the statute might on its face say something, that historically there’s been a different interpretation.

The Nevada gaming industry is enduring some difficult times right now. What kinds of challenges does that present to a gaming attorney?

There are any number of our clients that have been putting their financial houses in order. So you’re involved in their discussions with their lenders for restructuring some of the debt they have, to help them face the challenges of these economic times. We also have been approached by and represent a number of lenders who never thought they’d be in a position where they might consider going through the licensing process themselves. So there are challenges as a result of the economy, but there are also a number of opportunities for many people.

Do you have to bring in some people with financial expertise? Traditionally in gaming, that financial expertise was important, but it wasn’t as important as it is these days.

Clearly, my clients have. From my perspective, we make sure that whatever restructuring or whatever investments people make, they are those kinds of restructuring and investments that are going to satisfy the regulatory objectives. But clearly, you see a number of the companies on the Strip retaining exceptional financial advisers.

There’s a proposal out there that will raise the threshold of investment in a public casino company from 15 percent to 25 percent before you’re forced to get a license. Do you think this is going to go through, and if it does, will it change the face of Las Vegas to a certain extent?

This proposal would increase the amount that an institutional investor may own without having to go through licensing. There’s also discussion to open up the categories of types of entities that would qualify as an institutional investor. I think that may open up some additional sources of capital, but one of the primary goals of the gaming regulatory authorities is to ensure that individuals who haven’t been licensed do not exercise excessive control over a Nevada licensee. So although there may be an increase in the percentage that these types of entities can own, they’re still limited in how much they can do without being licensed.

I know you represent MGM Mirage, so I’m not going to ask you any specifics about this, but the New Jersey Division of Gaming Enforcement
recently declared Pansy Ho to be an unsuitable partner for MGM. Does this represent a different kind of regulatory philosophy, or did they discover something that Nevada didn’t know when the gaming board approved Pansy?

I represented MGM as it was approved by the Nevada Gaming Control Board and the Nevada Gaming Commission to have that involvement with Pansy Ho. I’m not aware of any information that was developed by the New Jersey Division of Gaming Enforcement that was not known to the Nevada Gaming Control Board and the Gaming Commission. Frankly, I’m at a loss to explain the differing views of the same factual predicate.

Will MGM Mirage defend the relationship before the New Jersey Casino Control Commission?

I can clearly say that MGM Mirage does not agree with the findings made by the Division of Gaming Enforcement or the recommendations made by that division, and looks forward to having the opportunity to present its position to the Casino Control Commission.

By GGB Staff   Tue, Jul 07, 2009

Konami Gaming has become the first slot manufacturer approved to sell machines to the four new casinos in Kansas.
   

The Las Vegas-based subsidiary of Konami of Japan obtained a temporary certification from the Kansas Racing and Gaming Commission to sell slots to a casino under construction in Dodge City, and three other proposed facilities in Sumner and Wyandotte counties, authorized under a 2007 state law. According to the commission, the company is the first slot-maker to receive the initial nod. (Permanent certification will be voted on by the commission.)
   

“We are pleased to receive the first of what we hope are many applications from slot machine manufacturers,” said Stephen Martino, executive director of the Kansas Gaming Commission.
   

Under the regulations set up under the 2007 law, gaming suppliers must submit to background investigations and meet a number of requirements, such as prior licensing or certification to sell slots in Illinois, Indiana, Iowa, Missouri and New Jersey. Only suppliers of slots, tables and money-counting machines must be certified vendors under the law.

By GGB Staff   Tue, Jul 07, 2009

Leading slot manufacturer International Game Technology has debuted an electronic, multi-player version of baccarat.
   

“Golden Baccarat,” which made its first appearance last month at Michigan’s Four Winds Casino Resort, is a five-player reproduction of a baccarat game. Player stations are placed around a “virtual dealer” appearing on an LCD video screen. Wagers, deals and the progression of the game are identical to those in the live game, with the table layout, including cards and chips, displayed on the video screen.
   

Players wager on banker, player or tie, just as in the live game, and standard baccarat rules apply. Players make no decision other than their wager. Also as in the live game, the house holds a 5 percent vigorish on winning bank hands.
   

The game is part of IGT’s “M-P” series of multi-player, electronic table games, which also includes roulette, “Digital 21” blackjack, and Texas Hold ‘Em Bonus. The series was created after IGT purchased technology from Novomatic’s Austrian Gaming Industries. “Our electronic, multi-player product line has significantly progressed in the past year,” said Tim Richards, IGT director of table games.
   

Four Winds, in New Buffalo, Michigan, placed the baccarat game in its fully automated poker room.

By Frank Legato   Tue, Jul 07, 2009

With this game, WMS combines the community-style “Big Event” game with the Transmissive Reels video-overlay technology used for animation and bonus events on traditional stepper games, into a package that should be a player favorite.
   

Like the earlier Monopoly Big Event games, each player on the four-machine bank earns an incrementing multiplier amount through normal play, and all players enter a community bonus event at once, with bonus wins multiplied by the number earned during the primary game.
   

It is available to casinos in a traditional style, with a single payline and dollar denomination, as well as a nine-line nickel version and a 15-line penny version.
   

There is a “Boost” symbol on the third reel which will bump up the player’s multiplier amount, over and above the normally earned boosts. There also are individual features such as wild symbols and jackpot multipliers that appear in the various base games. There are two initial base games in the link, Triple Monopoly and Go Wild. A third game, Boardwalk Bucks, will be added soon.
   

The community bonus game occurs randomly, independent of any result on the reels. When that happens, everyone on the bank enters the bonus round with the Big Event Multiplier they have earned. Each player is assigned one of the characters from the Monopoly board game. Each character is then assigned a multiplier for the credits they will win. On the overhead screen, the four characters emerge from an elevator and jump onto the giant Monopoly board. Several “guests” from the hotel will jump with them onto the board spaces—each board space awards a credit amount, multiplied by the number assigned at the beginning of the bonus.
     

Six of the spaces award “Mini Bonuses.” If the player’s character lands on Electric Company, Water Works, a railroad, Chance/Community Chest, “GO,” or Free Parking, the player’s screen goes into an individual bonus event to arrive at the award.  Most of the events are simple “pick-a-tile” events or animated sequences, on the face of the Transmissive Reels screen.
   

At the end of the bonus round, players’ awards are multiplied by their Big Event Multiplier numbers. “Guests” increase the awards as well.

Manufacturer: WMS Gaming
Platform: Transmissive Reels
Format: Three-reel mechanical, single- or multi-line stepper
Denomination: .01, .05, 1.00
Max Bet: 2, 100, 300
Top Award: Progressive: $100,000 reset Non-Progressive: 500, 800, 1,000, 1,500, 2,000
Hit Frequency: 22.17%—45.19%
Theoretical Hold: 14% (Progressive); 4%—14% (Non-Progressive)

By Frank Legato   Tue, Jul 07, 2009

This latest game in the Bally multiple-progressive series uses the large vertical screen, first seen in the slot-maker’s video roulette game.
   

During the primary game, the long vertical screen displays six progressive jackpots. As with other games in this series, the progressives are hit by landing “Quick Hit” symbols on the primary three-by-five game screen. Three of the symbols scattered anywhere on the screen pay the bottom progressive, which resets at $15.
   

They rise from there—four scattered symbols pay the $75-plus progressive; five symbols, $150-plus; and on up to nine symbols, which yields the top “ladder”-displayed progressive jackpot of $3,000-plus (or 2,000 credits times the total bet in the non-progressive version of the game).
   

The top overall progressive jackpot is won by lining up five “Platinum” symbols on an active payline. That returns a jackpot resetting at $7,500, or a jackpot of 5,000 credits times the total bet on the non-progressive version.
   

The free-spin bonus event has a unique twist. When three “Free Spin” symbols land on or within one space of the center, horizontal payline, the reels disappear and a grid of 20 tiles appears on the main game screen. The tiles cover up images of six scantily clad Playmates. The player selects symbols until one of the Playmates is completely revealed. Each Playmate corresponds to a number of free spins and a multiplier, ranging from five free games at 5X to 25 free games at 3X. When the Playmate is revealed, the progressives disappear and a full-frame image of the Playmate appears on the big vertical screen during the free-spin round.
   

There is a wild symbol that activates during the free spins, and each time a wild symbol appears, an additional five free spins is tacked onto the end of the round. This can continue up to a total of 50 free spins.

Manufacturer: Bally Technologies
Platform: Alpha Elite
Format: Five-reel, 30-line  video slot
Denomination: .01—100.00
Max Bet: 150
Top Award: Progressive; $7,500 reset
Hit Frequency: 35.25%
Theoretical Hold: 4.10%—14.92%

By Todd Sims   Tue, Jul 07, 2009

We are witnessing the advent of an exciting, efficient and instant communication strategy within the gaming industry—one that could revolutionize how casinos market to and inform players and guests throughout their properties.
   

In today’s world, smart phones, text messages, Twitter and Facebook foster immediate communication. In a casino, these technologies could allow real-time alerts to players about promotions, winners and last-minute specials for items such as show tickets, dining, and even discounted rooms.
   

The concept is simple, but the application hasn’t been. While reader boards, direct mail and looped messages provide scripted information to targeted guests in and outside of a property, applications generating real-time messages have been limited.
   

There are gaming devices that do possess instant-message capability. Products like Bally’s  iVIEW Display Manager, which is an extension of its iVIEW player-communication network, empower casino operators to deliver content on the main game screen and the top game display, with split-screen capability so game play is not interrupted. The information can be customized in real time to identify offers, bonuses, tournaments, and even to give players the option to order a drink or have a car brought to valet.
   

Although exceptionally effective, the messages are still limited to slot players. Additional systems are needed to communicate with guests in other areas of the casino and in non-gaming locations.
   

Until recently, no one system could push messages to a property’s complement of electronic displays and message systems. Devices typically required a tailored version of each message. Developing and implementing new content required days, even weeks.
   

The solution is a single media-management system that links to all message devices throughout the property, and pushes content to each without the need to create multiple versions of the same information. This relatively inexpensive option communicates information quickly to guests, and enables marketers to drive consistent messages throughout the property.
   

It can also provide content to interactive way-finding directories and kiosks, back-of-house electronic message boards, in-machine displays, in-room TV, and even mobile devices. Guests on the casino floor, in the elevators, or in their rooms can learn about gaming promotions, food-and-beverage specials, and available packages at sister properties.
   

Real-time communication also has the ability to generate or increase excitement during game play, a feature Linda Devine, senior vice president of marketing at Barona Resort and Casino in California, has noticed.
   

“Our guests are certainly more aware of the resort’s promotions since we installed the media-management system late last year, and the messages are creating a new level of excitement on the casino floor,” Devine says. “For instance, when they use the media manager to announce a winner for the casino’s Rapid Fire promotion, guests begin asking staff when the next one will begin.
   

“Our system contains a content creator that enables us to develop message content on the fly. What used to take us hours to create now takes seconds. And the system resizes the messages and animations for all of our digital-display screens, including our 50-inch monitors, LCD and plasma screens, and message windows on our gaming machines.”
   

Barona can also establish a series of triggers to generate specific messages. A trigger is simply an external result or event that tells the media-management system to issue a message. For example, if a progressive jackpot machine reaches $50,000, the system issues a notice to all guests. 
   

Devine says they create messages that contain graphics, animation and sometimes sound. They’ve done countdowns when they know someone is going to win a promotion, which helps build anticipation and excitement among players.
   

For casinos, presenting and sharing gaming information that encourages a lucky feeling is vital. The instant-messaging availability helps create the aura of a winning environment for players.  This kind of an atmosphere motivates players to stay and play longer.
   

The new Sands Casino Resort Bethlehem in Pennsylvania installed a media-management system as part of its overall design. Jason Nibauer, vice president of brand marketing, says the casino wanted a system that dynamically presented information to its guests and employees. The media-management system works with existing products and offers future integration with other communication devices.
   

In addition to using the media-management system on the casino floor and in the food court, the Sands Bethlehem casino communicates information to employees in back-of-house areas. In the staff lunchroom and employee entrances, employees receive news about multiple topics including policies and parking changes.
   

What’s more, the system is tied to the resort’s bus terminal to provide destination and departure information to waiting patrons. Bally customized this feature for the property.
   

“We have a cost-effective, user-friendly system that is expandable, scalable, and simplifies our operations,” Nibauer says. “In addition to installing additional monitors around the resort to further our communication reach, we intend to extend its connections to our conference center and the hotel side.”
   

Media-management systems are more than a just a high-tech communication tool. They are becoming the industry standard for taking casino communication, marketing, branding and guest relations to the next level.

Todd Sims is vice president, systems operations, for Bally Technologies. He is responsible for the division’s day-to-day operations, as well as managing several system products. He can be reached at 702-584-7700, or via email at tsims@ballytech.com. 

By GGB Staff   Tue, Jul 07, 2009

While most industries are affected by the global economic crisis, the gaming industry has been especially hard-hit. A dramatic decline in discretionary spending by consumers and tight credit have put casinos in a precarious state. Many gaming businesses have announced staff reductions and slashed capital expenditures to weather the storm.
   

It was against this economic backdrop that a group of more than 60 gaming leaders gathered to discuss employee engagement issues and trends in the industry during the 2008 Global Gaming Expo. I’d like to offer some views from a panel session I moderated, titled “Rules of Engagement.”
   

Gaming businesses increasingly recognize that employee engagement is an important part of their efforts to recruit top talent and a factor in top-line and bottom-line business performance. Engaged employees are passionate, energetic and driven employees who deliver better service to the customer and directly generate better business results.
   

Employee engagement goes beyond mere job satisfaction. In today’s economy, employees might be “satisfied” with just having a job. But true engagement is a higher level of commitment and dedication to their jobs and their organization.
   

“It’s not that job satisfaction is a bad thing,” said Kim Macdonald, regional director for Valtera Corporation. “But on its own, satisfaction is not a road to profitability. Developing engaged employees sets you apart from the competition.”
  

Independent research has even documented the link between engaged employees and customer satisfaction. The American Customer Satisfaction Index showed that service businesses in the top tier of employee engagement have significantly more satisfied customers.
  

Engaged employees can have a profound impact on a business. Engagement behaviors include:
• Persistence at difficult tasks
• Helping others even when “it’s not my job”
• Going beyond the norm to improve the guest experience
• Voicing recommendations for change
• Initiating an expansion of one’s responsibilities
  

The path to an engaged workforce begins with shaping the work environment and then nurturing engagement attitudes. Oftentimes, organizations will undertake an employee assessment to benchmark the current level of engagement and identify opportunities to improve engagement. Such a survey is different from the typical employee opinion surveys that many organizations conduct.
  

“Annual employee surveys are a mistake,” said Nancie O’Neill, director of organizational development and training for Pinnacle Entertainment. “I believe in more frequent pulse surveys that help us understand the current environment.” 
  

Hard Rock HR Director Carrie Messina agreed with the real-time need for understanding employee concerns as a way of building engagement. “Don’t ask employees for feedback if you’re not prepared to respond to that feedback,” she said. “You may not implement every suggestion, but it’s important to let people know you heard them and what you are—or are not—going to do with that information.”
  

An organization must establish an environment that will foster high engagement. This includes:
• jobs that can capture the minds and hearts of the people doing them;
• a safe environment to take initiative, become involved and offer suggestions; and
• the resources to do the work well.
   

“We frequently ask our employees what they want in their jobs and direction. Structure and order are always at the top of the list,” said O’Neill. “As managers we need to create an environment that meets those employee desires. In doing so, we build trust and involvement.”
   

At Station Casinos, there’s a coordinated effort to understand what people expect from their jobs. “We ask what their development goals are and make conscious decisions based on those goals,” said Harry Heck, corporate director of team member relations. “We don’t believe in an up-or-out philosophy. Some people want to move up while others want to continue doing their current job. Recognizing those differences is important.”
   

Hard Rock also has recognized generational differences among employees. “The attitudes and motivations differ among our younger and older employees,” Messina noted. “So it’s important to specifically ask what’s important to your employees. What you may choose as important or rewarding may not be what your employees will choose as rewarding.”

Improving Engagement
“A fundamental part of improving engagement is understanding where engagement is built,” said Messina. “Our front-line managers and pit bosses make the biggest difference with employees. So our senior executives focus on making sure managers know what’s expected, and the managers champion that down the organization.”
   

Numerous studies of workplace performance have shown that a person’s direct manager is the single most important force influencing that performance. Providing managers with the skills and resources needed to successfully manage their teams will increase engagement and increase performance. Engagement is contagious, in both positive and negative ways. A good manager will create enthusiasm in his or her team. But a single disengaged employee can undermine the engagement and performance of many others. This is especially true among managers. “Managers need to model the behaviors you want from staff,” said Macdonald. “They’ll breed disengagement if they enforce workplace rules inconsistently.”
   

Too many executives dismiss employee engagement initiatives because they incorrectly assume these programs carry a high price tag. In fact, there are typically several ways to improve engagement at little or no cost. Just the process of asking employees about their work environment often causes them to feel more engaged. But that improvement will be short-lived if there is not appropriate follow-up.
   

Your employees are the face of your business. A dealer, room attendant or check-in team member will do more to influence your guests’ experience than any senior executive. And in today’s economy, every guest experience matters. An engaged employee equates to improved customer service, which translates into improved business results.

Bob Schwieterman is general manager of the TRACOM Group’s Performance Consulting Division. He can be contacted at 303-265-6143 or www.tracomperformanceconsulting.com.
 

By Frank Legato   Tue, Jul 07, 2009

Cadillac Jack has marked its continuing expansion into Class III from its traditional Class II markets with several new game styles. One of them is a 50-line video slot product, available in two separate titles. There are four initial titles in the initial release, which is covering select markets in the U.S. and Mexico.
   

Tiger Magic is one of those titles. The 50-line base game includes stacked wild symbols, and there is a free-spin bonus. The player covers two paylines with each credit wagered.
   

When the Taj Mahal symbol lands scattered on the first, third and fifth reels, the player is awarded 10 free spins. During the free spins, the peacock, elephant and sultan symbols are replaced by the tiger symbol, which results in stacked symbols and multiple wins. The bonus round can be re-triggered during the free spins.
   

Cadillac Jack is making this available in both Class II and Class III versions, and in penny, 2-cent, nickel, dime and quarter denominations. The program features low volatility, and players can wager up to 10 credits for every two lines.
   

While operators will like the low volatility, players should line up for the high average wins. 
   

All of the new games in this series feature play styles the company launched last year, “SpeedPLAY” and “PlusPLAY.”
   

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

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

Manufacturer: Cadillac Jack
Platform: Cadillac Jack
Video Platform
Format: Five-reel, 50-line video slot
Denomination: .01, .02, .05, .10, .25
Max Bet: 100, 250
Top Award: $12.50, $125.00; times line bet
Hit Frequency: Approximately 50%
Theoretical Hold: 5%—14%

By Caitlin McGarry   Tue, Jul 07, 2009

Acrosser Technology officials have said their goal in recent years has been to change the idea of what to expect from a slot machine logic system manufacturer.
   

After introducing its first gaming product, the AR-B2002 PCI I/O Board, Acrosser executives said they used both their experience and feedback from the market to introduce a new series of products combining the CPU motherboard and I/O board into one product. This new, all-in-one design aimed to decrease issues related to compatibility of what used to be two separate products, thus making it easier for a slot OEM to use. The product could also reduce a company’s time to market with a new game.
   

The most recent release in Acrosser’s line of all-in-one gaming systems is the ACE-S5692. Utilizing the latest in Intel chipsets, the unit can support Core 2 Duo CPUs for high-performance games. For video slots, the unit can support up to four independent displays, and includes a PCI Express x16 slot for upgradeable graphics. Acrosser’s new system also includes an eight-reel control board, which is mounted directly inside the enclosure.
   

For many slot OEMs, interfacing with the slot machine peripherals can be diffcult. Acrosser executives said their API and library of drivers make developing on the ACE-S5692’s isolated and interruptible digital inputs and digital outputs “a piece of cake.” The available JAMMA and 72-Pin I/O interfaces can make upgrading some older cabinets with these technologies easier.
   

Many slot machine manufacturers say security is top priority in the design of any slot machine; Acrosser representatives said they made the ACE-S5692 with this in mind. Some security features include ATP (Acrosser Trusted Platform), secure boot, TPM, iButton socket, ProtectU, EPROM security, dual battery backed SRAM and intrusion logger, among other features.
   

For more information about the ACE-S5692 or other Acrosser products, contact 714-903-1760 or visit www.acrosser.com.

By Caitlin McGarry   Tue, Jul 07, 2009

Las Vegas-based software company Tech Results develops and sells business intelligence and customer relationship management software for the gaming industry. The company recently released the newest version of its host management application, Host VIP!
   

The program enables a gaming establishment to ensure host accountability while creating a more reliable hosted player management system, eliminating the need for the “little black book.” Host VIP! puts real-time player information in the hands of those who need it most: the hosts.
   

Because the application was developed by former gaming industry employees, the system is easy for other casino employees to use. Using the software, hosts can find new players who meet trend requirements for hosting, and are able to harness the ability to act on information immediately. The application’s dashboards provide immediate, critical information so problems can be addressed appropriately in a matter of seconds.
   

Host VIP! also boasts a report scheduling engine to automatically send out reports. Additionally, hosts can upload player photos to ensure property-wide visibility. The newest release of Host VIP! will give player development professionals the tools to quickly and effectively cater to hosted players.
   

Other features include easy-to-navigate dashboards that are collapsible and moveable; a search function to find players by basic information, worth, events and history (and users can save and view previous player searches); and a player’s trip details.
   

Users can take host management even further with Host VIP!’s mobile application, “Agile Host.” The mobile application runs on Windows Mobile 5.0 or 6.0 and delivers real-time player information and notifications directly to a hand-held device. With the device, hosts can search for players, print comps to network printers, issue comps, redeem offers and see a complete guest profile—or just view the high points.
   

For more information about Host VIP! and the Tech Results BI/CRM solution suite of products, call 1-888-587-7253 or visit www.techresults.com.

By GGB Staff   Tue, Jul 07, 2009

Slot manufacturer WMS Gaming announced that its participation units in the field—games leased on revenue-sharing arrangements—has passed the milestone of 10,000.
   

According to the company, average daily revenue per participation gaming machine has increased by over 20 percent, from an average of $58.55 in September 2006 to $70.37 in the March 2009 quarter.
   

The announcement is evidence that WMS is bucking what has been a trend in casinos of declining revenue-sharing installations. WMS officials say it is because of the new game styles that have been released on participation units, such as the “Sensory Immersion” game style reflected by the slot “The Wizard of Oz” and the “Adaptive Gaming” series, launched with “Star Trek.”
   

“The combination of unique technologies for the slot floor, industry-leading creative game content and our intellectual property has resulted in the development of the industry’s most successful and exciting portfolio of participation gaming machines,” said Brian R. Gamache, chairman and chief executive officer of WMS Industries Inc. “WMS’ ongoing success in growing our participation installed base and the revenue generated from these games is a direct result of our company-wide commitment to our long-term technology development plan, and the excellent execution we have achieved as a result of this focus.
   

“Importantly, we continue to advance our market position by readying for commercialization new products enabled with the second and third generations of our foundational technologies that provide a broader array of unique and differentiated entertainment experiences for players.”
   

Also at WMS, the company announced that it has extended its long-term license agreement with Hasbro, Inc. and Hasbro International, Inc. through 2016. The ongoing agreement grants WMS exclusive worldwide rights to develop and produce slot machines and other gaming machines featuring the Monopoly brand.
   

In addition, WMS and Hasbro have expanded the scope of their relationship, with WMS securing exclusive worldwide rights to develop and produce gaming machines based on such classic Hasbro board game brands as Battleship and Clue (or Cluedo, as it is better known in international markets), among others.
   

WMS had not previously produced slots based on those other board games because the license previously was held by the former Mikohn Gaming, which released Battleship and Clue video slots early this decade. That license has since expired, and Mikohn Gaming no longer exists.

By GGB Staff   Tue, Jul 07, 2009

Casinos Austria has awarded the Atronic Group a contract to provide its “eMillions” wide-area progressive system for installation at all 12 of its casinos. Under the contract, Atronic will provide 140 electronic gaming machines for the link, along with the central computer controller that will run the progressive system. Atronic also will provide Casinos Austria 24 stand-alone slots.
   

Players at Casinos Austria locations around the country will contribute to a wide-area progressive resetting at €1 million. Atronic’s “Galaxis” online system provides the architecture for the wide-area link.
   

“Casinos Austria’s primary goal is to create the most entertaining and exciting experience for our players, and we are confident to be able to enhance that experience with the introduction of eMillions and Galaxis,” said Christian Richter, director of gaming at Casinos Austria.
   

The eMillions wide-area link also will use Atronic’s StarJackpots system to control the jackpot levels and to modify the link to Casinos Austria’s requirements. The 140 machines on the link are Atronic “e2” upright and slant-top slots.
   

“With e2, Galaxis and the latest eMillions games, Casinos Austria will have a unique combination of machines, games and systems components that cannot be found in any other casino in the world,” said Michael Sells, regional sales manager for Atronic. “EMillions’ unique re-spin feature provides players with more chances to win when they spin the reels for a chance to hit the jackpot.”

By GGB Staff   Tue, Jul 07, 2009

Canadian table game supplier DEQ Systems announced 19 new installations for its “EZ Baccarat” system, a no-commission version of baccarat with a side bet.
   

In British Columbia, Starlight Casino, River Rock Casino, View Royal Casino and Boulevard Casino have installed the system, and Edgewater has increased its number of tables offering the system from three to six. In Missouri, where the system achieved approval less than a month ago, Isle of Capri, Ameristar and Lumière Casino have installed EZ Baccarat tables.   
     

In Macau, EZ Baccarat has been installed in the new City of Dreams. Melco Crown’s City of Dreams opened its doors with three EZ Baccarat tables in the City of Dreams Casino and two in the Hard Rock Casino. It is located directly across from the Venetian Casino on the Cotai Strip and operates an estimated 450 tables of which 80 percent are baccarat.
   

These installations come less than two months after the product’s approval, when the Wynn Macau went live with four EZ Baccarat tables.
   

EZ Baccarat accelerates baccarat speed by eliminating the commission. The winning-hand bank commission is replaced by barring one specific winning bank hand and/or reducing the banked winning wagers. The EZ Baccarat method, carrying the trademark “Dragon 7,” bars a three-card total of seven. Players can also make a side wager as to the occurrence of the Dragon 7.
   

“EZ Baccarat and EZ Trak are proving themselves in every market we enter,” stated Paul Omohundro, sales VP for DEQ. “Whether it is in direct commercialization such as in Missouri or with partners such as TCS John Huxley in British Columbia, EZ Baccarat and EZ Trak are in demand. We are anxiously awaiting jurisdictional approvals in Florida, Connecticut and Mississippi, where clients are waiting to get the EZ suite of products.”

By GGB Staff   Tue, Jul 07, 2009

Aristocrat Leisure Limited has announced that wholly owned subsidiary ACE Interactive has received GLI approval for its TruServ server-based gaming platform, under the amended GLI 21 regulations.
   

Doug Bertinshaw, vice president of marketing at Aristocrat’s Server Based Gaming Technologies unit, said, “GLI 21 approval represents a major milestone for ACE and Aristocrat, as TruServ is the first-ever GLI-approved true server-based gaming platform. This is a validation of our technologically advanced approach, and allows us to commercially pursue opportunities for TruServ in casinos across the world.”
   

Separately, ACE Interactive received an order for an additional 1,000 Indago terminals from Norway’s lottery and betting monopoly, Norsk Tipping. The order brings to 4,000 the number of terminals ordered for the project. Over 1,300 have been installed so far, with a final target of 6,500 terminals.
   

The Indago terminals are being placed in locations throughout Norway. They will be operated and managed with a TruServ SBG central system under the control of Norsk Tipping.

By GGB Staff   Tue, Jul 07, 2009

A betting limit increase that was approved by voters last November goes into effect July 2 at Colorado casinos. The maximum will increase from $5 to $100. In light of the high-limit gambling expected to take place at the state’s casinos, many gambling properties are expanding to accommodate the expected increased traffic. “This is something that was necessary for the Colorado gaming industry just to be on the same page with all the other jurisdictions that offer gaming,” said J.J. Garcia, assistant general manager for the Lodge Casino in Black Hawk and Gilpin casinos.

By GGB Staff   Tue, Jul 07, 2009

Clarion Events shut down its U.S. office in St. Charles, Missouri, to restructure its Clarion Gaming division. The former River City Group employees were given little notice and minimal severance. Clarion organizes trade shows such as the International Gaming Expo in London. Industry veteran Julian Graves will become the managing director of exhibitions for the company’s U.K. branch.

By GGB Staff   Tue, Jul 07, 2009

Dodge City, Kansas, has amended the city’s prohibition on public smoking to exclude the new regional casino that is planned for an opening later this year. Smokers will be able to light up only on the casino floor.

By Frank Fantini   Tue, Jul 07, 2009

The report that IGT has placed its new electronic baccarat games at Four Winds Casino in Michigan may be a signal that war is about to break out over this small but fast-growing segment of the casino business.

To date, e-tables in North America have been dominated by Shuffle Master, which got a head start when it purchased the business from Sega some years ago, then added to its advantage by buying StarGames.

That advantage has stayed even though IGT moved into the business several years ago and displays upgraded machines at every G2E.

As recently as the opening of Sands Bethlehem in Pennsylvania in May, all 16 electronic tables were Shuffle Master’s Table Master, because that is the only e-table yet approved in the Keystone State.

And StarGames’ Rapid Roulette maintains its near-monopoly of multi-player electronic roulette.

But that could be changing.
Consider:
• IGT appears to be moving assertively in this area, as evidenced by the Four Winds placements.
• Electroncek is now licensed in Nevada. The company is 50 percent-owned by Aristocrat, meaning it has a big and motivated distributor in the U.S. Electroncek, with its well-known Interblock brand, has a strong presence internationally.
• TableMAX, once a little side business for a basically uninterested distributor of defunct Progressive Gaming, is revived and focused as a public company under ambitious CEO Steve Crystal.
• Aruze, the big Japanese company with a tiny North American presence, is preparing to push into the U.S. and Canada. Among its offerings: e-tables.

At present, it is difficult to tell which company has an advantage in products, each making claims for itself while rapping the competitors.

An example is Indiana. In the Indianapolis racinos, Shuffle Master and IGT e-tables compete against each other on the same gaming floors.

IGT says players prefer its live-dealer, DigiDeal-based games. Shuffle Master says its all-electronic Table Masters are holding up just fine, and without the cost of a dealer.

In addition to which games players and casinos prefer, another question is how big the market will become.

At present, it’s a niche. Machines are steadily making their way into VLT markets like Pennsylvania where live table games aren’t allowed.

Table Master, without a dealer, fits perfectly in those markets, and also in small casinos that can’t afford 24/7 live dealers. The same is true of TableMAX, which has been placing games in Indian Country.

Even large casinos seeking to cut costs can load in a few Table Masters or TableMAX games for slot players wanting to cross over, or to offer blackjack and other games in the wee hours when live pits might not be financially justified.

In most cases, bigger companies have the advantages of scale over smaller companies, which should bode well for IGT. SHFL, however, notes that it owns proprietary games, so it can go beyond blackjack and baccarat to games like Three Card Poker and Let It Ride.

However, our observation, at least in racinos, is that most players want blackjack, not the specialty games.

The big future battle might really be between hybrids—electronic tables with live dealers, which many players prefer.

For IGT and Shuffle Master, that may come down to IGT’s DigiDeal-based games, which are electronic games with live dealers, and Shuffle Master’s still developing i-table.

What sets i-table apart is that it is a felt layout but with electronic chips and betting. It gives casinos the advantages of e-tables—faster, more accurate play and lower supply costs—while giving players the felt-table experience they prefer.

It also can be readily switched from one game to another, so if all Three Card Poker tables are filled but several blackjack tables are empty, a casino can switch one of the empty tables to 3CP in moments.

With TableMAX as small as it is, and Electroncek not making a splash, the contest, at present, seems to come down to IGT and Shuffle Master.

And if e-tables grow to become casino staples, there might be room for both of them.

Then, there is the question of how important these products are to a company’s stock.

IGT remains a slot- and systems-focused giant. If e-tables remain a niche, they’ll contribute to the bottom line, but not make or break the company.

For much smaller Shuffle Master, continued growth in its e-table business can have a more dramatic effect.

And if e-tables become standard with thousands of units in the field, that can be huge for SHFL and very nicely positive for IGT.

Obviously, for a very small company like TableMAX, it takes even fewer placements to move the needle. But TableMAX remains an early-stage company.

Finally, one cannot discuss electronic gambling without mentioning PokerTek, the only publicly traded pure play on electronic poker machines.

PokerTek has had growing success in placing tables, but has not been able to reach profitability, though it always has projections to do so.

In a way, PokerTek PokerPro is similar to Shuffle Master’s Table Master. Many players may prefer a live dealer where available, but they’ll play PokerPro if it’s their only choice.

And, like Table Master, it can fill that niche of operations too small for staffed poker rooms—cruise ships, small casinos, the wee hours when live staffing might not be justified.

Frank Fantini is the editor and publisher of Fantini’s Gaming Report. A free 30-day trial subscription is available by calling, toll free, 1-866-683-4357 or online at www.gaminginvestments.com.

By GGB Staff   Tue, Jul 07, 2009

The D’Iberville, Mississippi, City Council recently approved plans for developer Mark Seymour’s Royal D’Iberville Casino on the waterfront. Seymour plans to build a casino, a 400-room hotel, a condo-hotel, restaurants and a marina. Seymour has to find investors for the property, which must still be approved by the Mississippi Gaming Commission.

By GGB Staff   Tue, Jul 07, 2009

The Nevada Tourism Commission approved a sales tax that would back bonds for development of a mob museum in Downtown Las Vegas.  Funding for the Las Vegas Museum of Organized Crime and Law Enforcement still needs to be approved by Governor Jim Gibbons. A dispute between two contractors, however, could delay the project for a long time.

By GGB Staff   Tue, Jul 07, 2009

Marina Bay Sands, the Singapore casino resort project of Las Vegas Sands, has hired its first 1,000 employees. The new employees—dealers, inspectors and pit supervisors—are the first of the anticipated 4,500 casino personnel. A total workforce of 9,000 is expected when the resort is completed. To accomplish the hiring, Marina Bay Sands made use of the Employment and Employability Institute—e2i—which is an initiative of National Trades Union Congress, Singapore Workforce Development Agency and Singapore Labor Foundation. The resort is expected to be completed in the first quarter of 2010. Besides the casino, it will feature three hotel towers, restaurants, convention and meeting facilities, a museum, retail shopping and a large rooftop park spanning the three towers, equipped with swimming pools and other amenities.

By GGB Staff   Tue, Jul 07, 2009

Southern California gaming tribes San Pasqual, owner of Valley View Casino, and Rincon, owner of Harrah’s Rincon Casino & Resort, are trying to force Governor Arnold Schwarzenegger to back away from the stance that he doesn’t have any more gaming licenses to issue, and so be allowed to have 2,000 slot machines apiece, as is permitted under the state tribal gaming
compacts each signed in 1999.

The 1999 compacts set a cap on the number of licenses that could ultimately be issued, but tribes and the state disagree on that number. Currently there are about 60,000 machines operating in the state. The state says the compacts limit the number of machines to 33,151. The tribes have claimed a number as high as 120,000 at various times.

Their case was strengthened in April when a federal judge ruled in a case involving tribes in Northern California that the state should have issued at least 10,000 additional licenses. The judge says the cap on the number of machines could also be interpreted at 42,700.

In June, San Pasqual filed a $550 million claim against the state, saying that it has lost that much in revenue from not being allowed to deploy its full 2,000 slots.

Besides giving the tribes more revenue, a decision in their favor would also hamper the governor’s strategy of forcing gaming tribes to sign new compacts to get more slot machines—compacts that give the state a bigger share of the profits and more control over issues that the tribes consider trespass on their sovereignty.

By GGB Staff   Tue, Jul 07, 2009

The Shinnecock Indian tribe of New York is proposing a tribal-run racino at Belmont Park racetrack in Elmont, New York—just eight miles from the planned racino at Aqueduct race track in Queens borough.

Some observers fear that two gaming operations in close proximity could undercut each facility’s long-term viability.

“It has to make sense from an economic growth perspective,” said U.S. Senator Kristen Gillibrand at a press conference. “It has to create jobs.”

Aqueduct is the only project currently approved by the legislature. Construction on the $250 million racino and other upgrades were to have begun this year, but stalled when winning bidder Delaware North of Buffalo could not come up with a promised $370 million franchise fee by the end of March. Governor David Paterson reopened the bidding, and six groups are now vying for the rights to build and run a gaming operation at Aqueduct.

“Our preference is to continue on that path and support Aqueduct,” said Charlie Hayward, president and CEO of the New York Racing Association, which is based at Aqueduct. “All the demolition and acquisition of permits has already been done.”

State Senator Joseph Addabbo Jr. also supports the Aqueduct racino because “it will create jobs and improve the local economy and save Aqueduct as a racetrack.” Addabbo told the Queens Chronicle he is not ready to endorse a casino at Belmont. “They would be detrimental to each other if they had similar gaming,” he said. “They need different gaming so they can flourish and co-exist.”

The Shinnecocks cannot proceed on any gaming project until the federal government officially recognizes the tribe. The Department of the Interior has until December 15 to decide whether it will approve the longstanding request.

By GGB Staff   Tue, Jul 07, 2009

The U.S. Senate voted last month to confirm Larry Echo Hawk as the assistant secretary of Indian affairs at the Department of the Interior, a position that has been vacant for more than four of the last eight years.

The Senate Committee on Indian Affairs approved Echo Hawk by a substantial margin earlier.

Echo Hawk had drawn some criticism for his term as attorney general of Idaho, during which he advised the governor to change the language of state legislation so the state wouldn’t have to negotiate for Class III gaming. But that criticism didn’t amount to much.

A number of tribal leaders have come out to support Echo Hawk, saying they are sure he will be supportive of tribal interests.

Echo Hawk will work under Ken Salazar, the Interior secretary.

“He is a seasoned executive with an extensive background in government, Indian law and public policy,” Salazar said of Echo Hawk. “As Interior’s assistant secretary for Indian affairs, he will help the department meet its goals of empowering American Indian and Alaska Native communities and supporting the nation’s economic recovery.”

Echo Hawk said there are a number of challenges facing American Indians and he looks forward to doing what he can to resolve those problems.

“The challenges facing American Indians and Alaska Natives are great,” he said at his confirmation hearing. “I remember the many times that I have been in Indian reservation communities. In my mind’s eye, I can see the faces of people—people that I love and care for that suffered the effects of poverty. I would see it as my responsibility to do everything I can to see that every American Indian and Alaska Native receives an opportunity for a quality education and a good job and economic prosperity.”

By GGB Staff   Tue, Jul 07, 2009

The sale of the South African subsidiary of Century Casinos to Tsogo Sun Gaming was to close on June 30. An amendment to the original sale agreement has Tsogo Sun waiving its right to await final approval by all regulatory agencies involved. The sale has been green-lighted by three of the four agencies with veto power. Only the KwaZulu-Natal Gambling Board has yet to sign on. At closing on June 30, Tsogo Sun was to pay Century Casinos ZAR 254 million net cash, about $31 million.

By GGB Staff   Tue, Jul 07, 2009

Three lenders have filed suit against FX Real Estate and Entertainment Inc., a New York-based company that has defaulted on two loans totaling $475 million on its real estate across the street from CityCenter. The company had planned to build an Elvis Presley-themed resort before defaulting, and the rent being collected from the small businesses that are renting space on the property is not enough to cover even interest payments on the loans. FX announced possible bankruptcy plans in April, and in May said it still had no means to pay down the outstanding loans.

By GGB Staff   Tue, Jul 07, 2009

The Nevada Gaming Commission has approved licensing for former MGM Grand executive Alex Yemenidjian in the long-awaited transfer of the Tropicana Las Vegas resort. Yemenidjian is part of Onex Corp., a Canada-based private equity firm that plans to take over the Tropicana toward the end of the year, investing more than $100 million in upgrades to the dated property.

By GGB Staff   Tue, Jul 07, 2009

A spokesman for the National Collegiate Athletic Association said that if a federal lawsuit to allow New Jersey sports betting is won by the state, the NCAA would not be able to allow any NCAA championships to be hosted within the state. Currently, Atlantic City hosts the Atlantic 10 championship, and rounds of the NCAA “March Madness” tournament can be scheduled in New Jersey.  The organization has strict rules against allowing any championship events in a metropolitan area that allows wagering on the outcome of its contests.

By GGB Staff   Tue, Jul 07, 2009

Enjoy S.A., a casino and hotel operating company based in Chile, plans to conduct an initial public stock offering worth 30 percent of its equity (approximately 460 million shares) in July. The company operates casinos in various Chilean cities and one property in Argentina.

By GGB Staff   Tue, Jul 07, 2009

 A panel of operators and state officials in Delaware began work last month on regulations that will govern how licenses are issued and fees are collected for newly legalized table games. The panel includes state Controller General Russ Larson, Finance Secretary Gary Pfeiffer and Dover Downs CEO Ed Sutor.

By GGB Staff   Tue, Jul 07, 2009

Gambling opponents in Pittsburgh held a public meeting last month at the Calvary United Methodist Church, in the same North Side neighborhood where the Rivers Casino will open in August. The intention of the meeting, according to organizer Bruce Barron of opposition group No Dice, was to discourage people from gambling at the casino, and to let people know how to spot signs of gambling addiction. Barron is a former gambling addict.

By Roger Gros   Tue, Jul 07, 2009

One of the thorniest problems facing the casino industry these days, mainly in the United States, is the constant threat of union organization on the casino floor.

While the industry understands that workers on the hotel and non-gaming side of the business can appropriately request unionization, and, if the proper procedures are followed and management cannot satisfy employee demands without a union, casinos will eventually accept it. Hotel and non-gaming unions are a fact of life in the casino industry, so while the casino executives may not be happy that their employees feel it necessary to be organized, they can recognize it.

On the casino side, it’s a different story. Because the integrity of the gaming operation is constantly on the line, executives must be able to remove any employee from the floor at any time they think it’s necessary. If there’s a hint of impropriety from any employee, a casino must be able to nip it in the bud. This means that traditional union procedures such as warnings, write-ups, discipline and eventual dismissal become problematic. A union becomes an alien third party on the casino floor, particularly a union that has no experience in the gaming industry.

That’s the case with the United Auto Workers in the East and the Transport Workers Union in the West. Each union has little or no experience on the casino floor. OK, the UAW represents dealers in Detroit, but that’s only because Detroit is the union’s power base and casinos were forced to accept its involvement in order to “get along” in the heavily unionized state of Michigan.

Both unions have signed up dealers at several casinos in Atlantic City and Las Vegas. The union wants its members to believe that the reason they haven’t reached a contract agreement with any of these casinos is because the casinos are refusing to negotiate in good faith. The real reason, however, is that the unions are dragging their feet in order to sign up more workers in other casinos to gain a bigger negotiating advantage and bring more power to the union itself, with no regard for its potential “members.” These unions are clearly scrambling for new members in the face of falling memberships, and the casino workers are an easy target.

But the fact that there are so many casino workers who have signed up with these do-nothing unions is disturbing. It shows there is a discontent at that level and that the industry needs to address it. Once they’ve signed up with a union, however, it becomes almost impossible to talk to the dealers because of the rigid regulations that govern communication during this supposed “negotiation” period.

So if the dealers are going to be unionized, why not negotiate with a union you can trust, with leadership that truly understands the industry? And who might that be? The UNITE HERE international union, that currently represents the largest number of non-gaming casino resort employees in the country.

Now, there is something of a “gentlemen’s agreement” with UNITE HERE that the gaming industry won’t oppose non-gaming union organization if the union keeps its hands off the casino workers. Well, that horse has already left the barn, so why not allow UNITE HERE to organize the gaming workers?

The union’s leaders understand gaming like no other union. John Wilhelm, the president of the union’s gaming division, is a staunch defender of gaming before Congress and in the media. But Wilhelm is a tireless worker for his members, raising their wages, benefits and standard of living steadily over the past 20 years.

UNITE HERE’s leaders in Las Vegas and Atlantic City—D Taylor and Bob McDevitt, respectively—are brilliant and effective representatives of their members, who understand the way gaming works.

And UNITE HERE also needs the industry’s help. It is under attack by the UAW and the TWU, along with a direct competitor, the Service Employees International Union. By encouraging UNITE HERE to get involved in the representation of casino workers, the industry will help it fend off the assault from these wanna-be gaming unions and create a true partnership that will result in reasonable procedures that will protect the integrity of gaming both on and off the casino floor.

I know this is a radical idea, ill but there needs to be some creative thinking to make the future of the industry and its relationship with its workers healthy and good for everyone.

By GGB Staff   Tue, Jul 07, 2009

The conclusion of two casino sales in Atlantic City are indicative of the problems facing the gaming industry in the city.

A year-and-a-half journey toward new ownership ended last month for Atlantic City’s Tropicana Casino and Resort, when an investor group led by billionaire Carl Icahn was declared the winning bidder in the bankruptcy auction for the property.

Just as Icahn did with Sands Atlantic City, he got the Trop for a bargain-basement price—$200 million. (Icahn bought the Sands Atlantic City in 2000 for $65 million, selling it to Pinnacle Entertainment in 2006 for $270 million.)

Icahn’s group, which holds a $1.4 billion mortgage on the Tropicana, had submitted the $200 million amount as a credit bid against the mortgage. It was declared the so-called “stalking-horse” bid in the sale—a starting bid that is accepted if no higher bids come in.

None did. Retired Judge Gary Stein, who has been the property’s trustee since its former owner lost its license, had gotten permission to conduct the sale as a bankruptcy auction. After the deadline for competing bids passed on May 29, Stein declared Icahn’s group the winner. A bankruptcy court judge later approved the sale giving the
group the sprawling, 2,000-room property in exchange for forgiving $200 million in debt associated with the mortgage. It is anticipated the group will be granted a temporary license by regulators, pending the mandatory background and financial investigations.

Meanwhile, Trump Entertainment Resorts announced last month that it has terminated the agreement to sell its Trump Marina Hotel Casino to developer Coastal Marina LLC.

The announcement came after Coastal, which had planned to partner with entertainer Jimmy Buffett to transform the aging Marina district property into a “Margaritaville” tropical-themed resort, accused Trump Entertainment of breaching its contract agreement by engaging in what it called “fraudulent activity.”

The dispute between the partners came as a May 28 deadline expired to close the purchase agreement, originally signed in May 2008.

Trump Marina turned in the lowest gaming revenue of all Atlantic City casinos in 2008, at $203.6 million. Officials say the company will work to stabilize revenues while seeking a new buyer.

By GGB Staff   Tue, Jul 07, 2009

Fontainebleau Las Vegas and two of its affiliates filed for Chapter 11 bankruptcy protection in Florida last month.

The move ends almost two months of speculation that the company would have to file. The $3 billion project has more than $1 billion in assets against more than $1 billion in liabilities.

The decision to file was primarily motivated by a number of large lenders backing out of the project. Fontainebleau Las Vegas has reached a provisional agreement with some of its lenders, and it plans to look at negotiations to obtain financing to recommence construction on the project.

By GGB Staff   Tue, Jul 07, 2009

Pennsylvania state Rep. William DeWeese introduced a bill last month to add table games to Pennsylvania’s casinos. Under the measure, operators of the currently slot-only casinos would pay a $10 million up-front fee to add blackjack, craps and other table games.

The bill, a response to the introduction of table games in the adjacent state of Delaware and expansion of table operations in West Virginia, another bordering state, is expected to receive
serious consideration because of a $3.2 billion budget deficit.

State Senator Tommy Tomlinson confirmed that he will introduce a similar bill in the Senate.

Convincing Governor Ed Rendell may not be easy. Rendell last month reiterated his longstanding position that all the 14 authorized slot venues should be up and running before the state considers table games. However, he did say that if the bill passes both chambers, he will “take a look
at it.”

It is estimated that table games could generate as much as $300 million in additional revenue for the state. Casino owners say they could have tables up and running within six months after approval.

Meanwhile, a new study shows that legalizing table games in Pennsylvania would create more than 10,000 jobs and generate more than $164 million in additional gaming taxes.

The study, conducted by the Innovation Group, was forwarded to Pennsylvania lawmakers as they prepared to debate table game legislation.

The study “shows the positive impact that table games would have on Pennsylvania,” said DeWeese spokesman Tom Andrews in an interview with the Lehigh Valley’s Express Times newspaper. “That’s the reason (DeWeese) is introducing the bill—the positive impact it would have in generating revenue.”

The study examined the effects of table installation on revenue performance in West Virginia and Iowa in formulating the estimates. The job estimates are based on the Innovation Group’s observation that “a 100-table game operation would require more than 3.5 times the number of employees as a 3,000-slot machine operation.”

By GGB Staff   Tue, Jul 07, 2009

The parliament of Ukraine voted definitively to shut down all casinos and slot operations in the country as of June 11. The vote followed President Victor Yushchenko’s June 4 veto of the shutdown law originally passed in May.

Yushchenko had suggested a suspension of existing gaming licenses until such time as gaming zones, similar to those planned for Russia, could be established. The proposed gaming zones were part of the original legislation passed by parliament and they have been incorporated in the latest law passed as well.

The government is now set to draw up new gaming legislation within the next three months.

The first parliamentary vote to shut down gaming operations came on the heels of a deadly fire in a small slot hall in Dnepropetrovsk.

“This law is populist and badly drafted,” the president’s office said in a statement. “It will lead to the loss of 200,000 jobs. In conditions of a world financial crisis, the president cannot go along with it.”

Casino operator Olympic Entertainment Group had ordered its Ukraine venues to reopen on June 8, just four days after the president’s veto. Now, after the June 10 parliamentary vote, OEG is studying its options.

“OEG is conducting legal analysis of the situation and will plan its future actions in accordance with analysis results,” the Estonia-based company said in a statement on its website.

By GGB Staff   Tue, Jul 07, 2009

With just three weeks to go, the Russian Ministry of Economic Development asked Prime Minister Vladimir Putin to “reconsider” the law that will close by July 1 all casinos and slot halls that have not relocated to one of the four designated gaming zones.
    The reason for the request is that none of the four zones is anywhere near being ready to accept gaming operations, due to the lack of prepared infrastructure. The government rejected all previous calls for delaying the move.
    The Moscow Times reported that Moscow Deputy Mayor Sergei Baidakov said the shutdown would only affect about 4,000 Moscow residents employed in the local gaming industry, and that the city had received notice of more than 10,000 layoffs as of late April. The city had 29 casinos and about 520 slot parlors still in operation.
    Although casino gaming and slots are to become illegal outside the gambling zones, poker and sports betting will be permitted at licensed sporting clubs. Tournament poker is recognized by Russian law as a sport. Alcohol and tobacco will not be allowed in these clubs.
    David Chichua of the Moscow Sport Poker Federation said there are 60 poker clubs registered in Moscow, but only 5 percent of them are certified.
    According to Lyubov Loginova, who chairs the board at gaming operator and supplier Alsart, Moscow and St. Petersburg are the leading markets for the new poker sport. The number of poker clubs continues to grow. The Federation of Sportive Poker receives get requests for certification of clubs on a daily basis.

By GGB Staff   Tue, Jul 07, 2009

The Kaliningrad region of Russia has confirmed it plans to sell land to casino operators, but will not invest public funds to create the necessary infrastructure to support its designated gambling zone.

Kaliningrad is located on the Baltic Sea, between Poland and Lithuania, and is not contiguous with Russia.

The regional government’s intention to place the land privately was reiterated recently by the local economy minister, Alexandra Smirnova. Exact terms of the coming land sale tender are being drawn up, but prices are expected to be relatively high.

The gaming zone is expected to comprise just over 1,000 hectares.

The national government has made it clear it intends to stick to its July deadline for the closure of all casinos and slot halls outside the four designated regions. However, those regions have made little or no progress on development.

In April, the website KaliningradExpert reported that Kaliningrad Governor Georgy Boos had said construction of the gaming zone might take a decade to complete, and that if successful it could create an additional 20,000 jobs for the region.

KaliningradExpert also reported that the Czech subsidiary of gaming machine producer Novomatic will be starting operations at a new manufacturing plant in Kaliningrad in June.

However, the president of the Association for Entertainment Industry Development, Bogdan Golovaha, has said that, for now, 5,000 people in the Kaliningrad region might be losing their jobs on July 1.