By GGB Staff   Tue, Sep 08, 2009

Sometimes the most important figures in any industry aren't the visible leaders. Often, the most influential people lurk behind the scenes, making things happen, swaying opinion, moving the pieces around so the people and businesses they influence can prosper and develop in the most sensible way.

The list of the Global Gaming Business 10 Most Influential People may not dazzle casual observers of the gaming industry. Most of the people mentioned within are hardly household names.

But for those who are true students of the industry, the 10 people profiled here are very familiar. They are the people who others consider when planning moves, taking steps or considering the future.

No, these are not the most powerful people in the business. These are not the most visible folks. But these are clearly people that other people listen to, take counsel from, and respect at such a level that their influence spreads far beyond their limited scope of operations. And these are people you need to know, whatever your role in the gaming industry.  

The King of Technology
James Maida
President, Gaming Laboratories International

For companies that manufacture slot machines and gaming systems, there is only one place to go when they develop new technology to get the endorsement necessary to achieve success: Gaming Laboratories International. The GLI certification is the imprimatur when it comes to acceptance by regulatory organizations, gaming operators or systems developers.

Ironically, however, the founding of GLI wasn't planned. James Maida was working for the New Jersey Division of Gaming Enforcement in the late 1980s when gaming legalization began its first wave. The Midwest riverboats were legalized in several states, but there was no way for them to tell whether the slot machines that would be placed on the boats would be up to the standards claimed by the manufacturers. Maida, who also was attending law school at the time, decided to put together a company that would independently test the machines.

"The states needed a test lab," Maida explains. "They were faced with two choices: go to a state test lab that was already running but would not have their best interests at heart, or invest millions of dollars and open up their own lab, which was, for many of the small states, not reasonable."

So Maida and his investors put together a company that would do the work for those states in an atmosphere of integrity and transparency.

"It was a natural that regulators from all over the country could come to a single source and share resources," he says.

From those early days, Maida says they went to talk to every new jurisdiction that was considering gaming and discussed their services and how they could make the process logical and transparent.

"Even today, we're talking to at least half a dozen states about what we do and we can do for them," he says.

But GLI didn't just stop in the United States. It now has offices in every major gaming jurisdiction around the world and is clearly the "gold standard" when it comes to testing and evaluating machines and systems.

The GLI Certification-known as "GLI 11"-is what every company strives for when producing a new gaming machine or system. Maida says it was a process of examining regulations from around the world pertaining to technology.

"We merged all the regulations into a single document and compiled the best practices," he says. "Over the past five to eight years, we developed standards that are as high as you can get in terms of technical competence. And we set the bar high because it's never easy to raise the bar, if you set it too low."

"And the manufacturers want to know that they meet the higher standard so they can get into every market that they desire," he continues. "It doesn't guarantee that they'll get in, but it gives them confidence that their products will be accepted almost everywhere."

In many cases, GLI is the first company into a jurisdiction when word gets out that they are considering the legalization of gaming. But Maida says the company doesn't act as either an advocate or cheerleader for the gaming industry.

"We don't try to tell them that they should legalize gaming," he says. "We don't know their economy. We don't know the circumstances surrounding their consideration of gaming. We'll get them assistance if they need an economic study, or need to know the social issues surrounding gaming, or a review of regulations in other jurisdictions. We'll get access to that information.

"But when it comes to actually advocating gaming, that doesn't happen. If they decide that they want gaming, we will help them get it regulated properly. The question whether or not to legalize gaming is usually a legislative or parliamentary decision, and we can offer facts and data. But we'd never get into suggesting exactly what they should do."

Nevertheless, GLI is often called to go before legislative committees or gaming boards whose members are political appointees. Maida says the company doesn't take that into account.

"We don't get involved in the political process," he says. "We're not Democrats. We're not Republicans. We're not independents. We're just interested in good regulation of gaming, and that's how we stay out of the politics."

Maida says the current economic climate is spurring the legalization of even more gaming.

"If you go back to 1989 and consider every recession we've had since then, gaming has expanded," he says.

"Riverboat gaming came about in the early '90s. There was a further expansion in the midpoint of that decade.

And now we see a tremendous number of states and countries looking at gaming to raise revenues without raising taxes on the other businesses and citizens."
As technology accelerates, however, GLI must remain on the cutting edge and be prepared for any developments that are coming down the road.

"We meet with the manufacturers every quarter," says Maida. "They tell us what they're developing and what we can expect in the next year or so and we start preparing."
Although GLI clients include both manufacturers and regulators, Maida says there is no doubt who is in charge.

"We're very upfront about it with all our clients," he says. "We work for the regulators and we work with the manufacturers. Transparency and integrity are the most important things to us. The goal is not to artificially keep some suppliers out of the market. The goal is to show the regulators that the products meet their standards and give them comfort that the equipment in their field will not create any scandals. Whatever the regulator wants rules the day.

"But it's in our best interest to help suppliers through that process, because the gaming industry doesn't exist without regulators, suppliers or operators. Everyone has to work together."

-Roger Gros

Indian Advocate
Michael Anderson
Partner, AndersonTuell LLP

The tradition of Native Americans traveling to Washington, D.C., to advocate for issues of importance to them goes back to the founding of the republic. In fact, in the early days of the city, a hotel was founded on Pennsylvania Avenue specifically to host Indian chiefs and their parties while attending to affairs in the nation's capital.

So Michael Anderson is simply carrying on a revered institution in Indian Country. While Indian nations are clearly sovereign, they all exist within the United States, so the attitude of the federal government toward tribes is crucial to their well-being. Anderson has the ear of some of the more powerful policymakers in the government, and, along with partner Loretta Tuell, has created what has become the go-to firm for tribes hoping to influence the shape of tribal-U.S. relations in the near future.

The election of Barack Obama-with the near-unanimous support of Native American tribes-gives Indian Country hope that the future will be very different from the past. In some sense, Anderson is trying to temper expectations.

"The transparency and the open-door approach is refreshing," he says. "But in any government, there are going to be disagreements. And the government is more than just two or three political appointees. There are career, entrenched bureaucrats, if you will, who have not been favorable to Indian issues. While a political appointee can make some difference, the permanent government is always there, whether it's at Justice, Interior, EPA or wherever they may be. So, we might see modest progressive change, but dramatic change is going to be difficult to accomplish."

Anderson says a fall "summit" of Indian leaders in Washington, D.C., will give tribes a better idea of how the Obama administration will approach Indian issues.

"According to the administration, it will be a kind of 'G-8' meeting of tribal leaders," he explains. "That will be a time to set priorities at the highest level in terms of consultation, funding, action, supporting economic development. So, that could be a real opportunity. That's where the ball could really be moved forward." 

Anderson knows Washington intimately, and initially received note because of his background. A member of the Muskogee Creek Nation, Anderson is the great-great grandson of the legendary Muskogee Chief Samuel Checote. After being raised in Oklahoma and working for the nation, he was named associate counsel and general counsel for the Senate Special Committee on Investigations. In 1993, he was named executive director of the National Congress of American Indians. He joined the Clinton administration in 1993, serving as legal counsel and later a deputy assistant secretary in the Bureau of Indian Affairs until 2001. During that time, he was involved in all the "hot button" issues-state revenue-sharing and the  scope of gaming, land in trust and reservation gaming issues-and cleared over 100 gaming compacts, including the Mohegans and the Mississippi Choctaw, and many tribes in California, New Mexico and elsewhere.

So when Anderson talks about Native American issues, people listen-especially Congress. He testifies regularly before congressional committees and understands the government process very well. That knowledge will be tested when approaching the recent Supreme Court decision, Carcieri v. Salazar, which seems to limit the ability to take land into trust for gaming purposes.

"This will have a huge impact on gaming acquisitions," he says. "There are several test cases on the horizon here, and tribes will be looking closely at how the BIA handles them."

With the recent scandals surrounding Jack Abramoff and tribal lobbying in Washington, Anderson says being one of the few Native-owned firms in D.C. is an advantage, but that doesn't last very long.

"This business is still results-oriented," he says. "If you produce results, you'll get the business  whether you are an Indian or not."

-Roger Gros

Godfather of Gaming
Jack Lam
Chairman, Jimei Group

The importance of Jack Lam to the Macau gaming industry cannot be overestimated. As one of the largest VIP junket operators in Asia, Lam's company, the Jimei Group, controls the fortunes of two of the city's most important gaming companies, Las Vegas Sands and its three casinos and Wynn Macau. The players he brings to Macau are some of the biggest "whales" in the business and contribute mightily to the bottom lines of both companies.

But for Lam, Jimei's gaming empire continues to expand, using the same players he delivers to LV Sands and Wynn. In addition to his junket services, Jimei operates two casino cruise ships-the M.V. Jimei, out of Hong Kong, and Xiang Xue Lan, with routes between China and South Korea-and has several interests in the Philippines, including Fort Ilocondia Resort & Casino and Fontana Leisure Parks. The company also opened its first casino in Macau early in 2009, in the Mandarin Oriental hotel.

Lam was born in Guangzhou, China, and moved to Hong Kong in 1979 to work with his uncle, who owned a factory there. Lam worked as a bookkeeper earning just HK$1,000 a month (US$125). He accompanied his uncle on gambling trips to Macau and became enamored with the industry. In 1981, he began working as a sub-agent, bringing junkets to the SAR and continuing to establish contacts in the region. He seemed to have an innate grasp of the motivations of Asian gamblers and a sixth sense about what they required and how to treat them. The relationships he built with his customers have created a loyalty that he has parlayed into an empire.

Lam is now preparing for the opening of gaming in Singapore, and expects that city to be an attractive destination for players.

"Singapore is a country with unique attractions," says Lam. "Its public security, environmental protection, urban planning and green work are doing well.

"When the two gaming establishments open, tourists and VIP players from all over the world will come and enjoy the newly high-quality environment. This initial surge of travelers into Singapore may cause a temporary reduction of customers in other Asian gaming markets, but in the long run, I believe the Singapore market will help to develop new customers, and increase the overall business opportunities in Asia."

Lam is also looking at other nations in Asia for an expansion of the gaming industry.

"It's just a matter of time before the gaming industry in Japan will become legalized and regulated," he says.

"Japan is another Asian country with very attractive elements. Given the opportunity, I would love to participate in this market in my role."

For his home turf, however, he has confidence that the Chinese government will understand the importance of Macau to the entire country.

"I believe a well-governed country with sound policies must focus on its overall government system, economy and public security," he says. "The policy-making should not be affected by a certain individual industry.

"The relationship between China and Macau is like that of a father and son. I believe the father will certainly help the son to grow up in a healthy manner when needed."

Even though some operators want to curtail the VIP junket system in place in Macau and in other regions across Asia, Lam is confident it will remain strong.

"The VIP business will continue to grow in the many years to come," he states. "As the demand for VIPs increases, Asian markets will need to invest more resources to improve the hardware, software and infrastructure to attract those players.

"When those effects match the demands, the market will, of course, attract more and more customers."

-Roger Gros

Judy In Disguise
Judy Patterson
Senior Vice President and Executive Director, American Gaming Association

One of the casino industry's best moves in the past 20 years was to set up the American Gaming Association in Washington, D.C., in the early 1990s. And as head of that organization, the second-best move was to appoint Frank J. Fahrenkopf, the former head of the Republican National Committee under Ronald Reagan.

And maybe the best move Fahrenkopf made when he took over was to appoint Judy Patterson has his chief deputy. While Fahrenkopf has the "name" and the recognition, it's clear that Patterson does the behind-the-scenes work that is crucial to all associations.

She learned the ropes as the as special assistant to the president of the American Bar Association, and applied what she learned there to the AGA.

In the early days, it was a four-man team, and Patterson said they had to get up to speed quickly. 

"One of the industry's deficits was that there really wasn't any research about the major benefits of gaming- employment, tax revenues, infrastructure and the other things," she says. "On the flip side, there was data that passed for 'research' by opponents of gaming. If we had not had Harrah's, which has a strong research department, it would have been much more difficult. Soon thereafter, however, we began doing our own research, both macro and micro, and today we're a clearinghouse for all data about the industry."

Less than a year later, however, Congress passed a bill that established the National Gambling Impact Study Commission, supported by gaming opponents, who were planning to use the results to rein in the expansion of gaming.

"For two years, we traveled around the country to each of the hearings getting our information together and arranging witnesses who would tell the true story about the industry," she says. "There were two benefits to that in the end. Because we were so proactive, the industry came out very well in the final report. And second, it was a call-to-arms for the industry to get more organized. It solidified our role with the AGA and brought the industry together in a way it had never been unified before."

That unity led to Patterson's work on other subjects. She organized and chaired several task forces focused on issues such as diversity, taxes, bank secrecy act provisions, communications and responsible gaming.

It's that last subject that makes Patterson smile. The formation of the National Center for Responsible Gaming is one of the triumphs of the AGA, and it has helped develop groundbreaking research into problem gambling.

"We needed to address this dearth of research on the subject," she explains. "We knew that 50 percent of gamblers weren't afflicted with this problem as our opponents claimed, but we had no proof. And if we were going to fund research, we needed to find a way to make sure it was clearly independent. We were fortunate to join with Dr. Howard Shaffer at Harvard, and he helped guide us in setting up the research and the structure.

"It was a leap of faith. I give our members credit. They put their money forward not knowing what the ultimate outcome was going to be. But we have always been better served by investing in research that is peer-reviewed and unbiased than we ever would have been if we arrived at the answer via anecdotal information."

With the 10th anniversary of the AGA come and gone, Patterson looks forward to expanding the influence of the association by attracting more members. By playing a crucial role in the development and operation of the industry's largest trade show, Global Gaming Expo and G2E Asia, both joint ventures of the AGA and Reed Exhibitions, Patterson believes that the association will continue to serve and protect.

"We believe that the entire gaming industry benefits from our work," she says. "Whether it's tribal casinos or racinos that may not be members, we believe we have a positive impact on the business, whatever kind of facility you operate."

-Roger Gros

Founding Father
Robert Faiss
Partner, Lionel Sawyer & Collins

The road from racket to respectability for the gaming industry has been long and rocky. And we still can't see the end of it. But if you can credit one person for steering us in the right direction from the start, it's Bob Faiss.

Faiss had one goal as he entered college: to reach a position of influence in journalism, which he achieved when he was named the youngest city editor for the Las Vegas Sun at that time in the early 1960s. His professionalism caught the attention of a candidate for governor, and when Grant Sawyer was elected, he chose Faiss as public information officer.

"He was a crusading district attorney in Elko County, and ran for the Board of Regents when I was a student at the University of Nevada-Reno," explains Faiss. "I campaigned for him, and although he did not win, I was very impressed with his character, his love for Nevada and his desire to make it a better place."

Still, Faiss had no thought of attending law school, but continued with the political career that had overtaken him. But when Sawyer was defeated for a third term, Faiss decided to take the plunge and attended law school in Washington, D.C., with the promise that he could practice law with Sawyer in Nevada.

Faiss had experience at the state and federal levels (serving with President Lyndon Johnson in the late 1960s), but nothing had prepared him for the battle with the mob. 

Though Nevada gaming had been infiltrated for years by organized crime, efforts were made in the 1950s and '60s to eliminate any influences of the undesirables. Progress was limited, until Faiss (backed by his mentor, Sawyer) began to re-shape Nevada gaming regulations.

"You have to remember that after the legalization of gaming in 1931, the state played no role in gaming," he explains. "It wasn't until 1945 that there was a state tax and the Gaming Control Board was not even set up until 10 years after that. So people had been in business for a long time and had been doing things the way they thought best, and suddenly this system started to be foisted upon them. So there was resistance."

The Gaming Control Act passed by Sawyer in 1959 gave the board and the Gaming Commission great discretion. Both the courts and public opinion supported this approach. Further tweaks to the system allowed gaming to operate successfully as long as the integrity of the operation and the games was assured. Faiss was involved with many of the regulations and guidelines, so he's very protective of his clients as they enter the Nevada regulatory system. 

"This practice was founded by Grant Sawyer," he says. "He selected attorneys the same way he appointed regulators. He wanted us to understand that we were not only representing our clients but we are also officers of the system."

As a key participant in the evolution of the Nevada regulatory system, Faiss says he's proud that politics are not part of the regulatory scheme in the state.

"When people come to Nevada, they don't ask who knows the governor;" he explains, "they ask who knows the system. Grant Sawyer was wise enough to stay out of the regulatory end of things, and all subsequent governors have followed his lead. Partisan politics are just not part of the system, and all the commissioners and board members past and present would attest to that."

-Roger Gros 

Ace in the Hole
Mitch Garber
CEO, Harrah's Interactive Entertainment

Within days of the passage of the Unlawful Internet Gambling Enforcement Act in September 2006, PartyGaming announced that it would withdraw from the U.S. market. The company saw a huge drop in revenue the following year after losing a huge chunk of its customer base, of which more than 50 percent were U.S. residents. But under the direction of Mitch Garber, then CEO of the company, PartyGaming took to an aggressive strategy of mergers and acquisitions that saw the company recover its lost revenue by expanding in other jurisdictions that were more friendly to online gaming operators.

Garber has since left PartyGaming, but he remains a pivotal figure in the online gaming world. He was pegged to head up Harrah's Entertainment's newly formed subsidiary, Harrah's Interactive Entertainment, charged with the task of growing the World Series of Poker and Harrah's overall online presence. The approach will be similar to what Garber did with PartyGaming, with a strong emphasis on international growth in regulated and open markets.

"The focus with the World Series of Poker is quite simply to maintain and increase its leadership position as the de facto championships of poker and the leading brand globally in poker," Garber explains. "Today, we have essentially all of the bracelet events taking place in Las Vegas or in London, and I think in order to become a truly global event we want to expand that reach simply beyond Las Vegas and London."

The WSOP will be modeled after other successful sporting ventures in the U.S. like the United States Golf Association and the Professional Golf Association, where there are a number of different tournaments, some of more importance overall than others, held in jurisdictions throughout the world.

Additionally, the WSOP, along with other brands like Harrah's and Caesars, will gain international exposure through online gaming. Garber plans to draw on his experience with PartyGaming to help guide the efforts of Harrah's. The biggest challenge, he says, is to avoid damaging the brands. Everything the company does online has to be up to the level of the company's land-based operations.

The move toward online gaming, and the man who was pegged to lead it, shows that Harrah's knows that "legalized and regulated online gaming is going to be a very important stream of revenue in the future," says Garber.

And while international growth will help the company-especially as it labors under the debt incurred to go private in 2007 and reduced revenues at its Las Vegas and Atlantic City properties caused by the ongoing recession-Garber also believes that the future of online gaming definitely includes the U.S. There is legislation now in both the House and Senate that would create a system for regulating and taxing online operations in the U.S., and while it may still take several years before the market fully opens up, Garber believes that it ultimately will.

"The trends are for open, regulated, taxed and licensed online gaming in the E.U., and I just believe that North America, the U.S. and Canada in particular, are destined to follow suit and to enact a regulatory framework that alleviates the concerns about responsible gaming, minors gaming, and shows that this activity can be run fairly and securely and that it can be regulated and taxed effectively," Garber says. 

The opportunity to grow the company while also perfecting its online presence could  give Harrah's a distinct advantage if and when the U.S. market opens up. Either way, it opens up an additional revenue stream and expands the company's brand awareness.

And while it remains to be seen just how the online gaming landscape will look in the future, it's a good bet that with Garber heading up the online operations, Harrah's will be primed to fully exploit any and all opportunities the online world provides.

-Greg Jones

One For All
Ron Goudsmit
Chairman of the Board, European Casino Association

Ron Goudsmit wants to see a level playing field, where land-based casino operators compete on equal terms with the online casino industry. As chairman of the European Casino Association, one of his main challenges is to make sure that those with the power to make law have at their disposal current and accurate information that reflects the reality of Europe's multiple and varied casino jurisdictions.

Goudsmit began his casino career 33 years ago, as a dealer at the first legal casino in The Netherlands. On his way up through the ranks of the Holland Casino organization, Goudsmit has held various positions, including a casino directorship and corporate divisional vice presidencies of gaming, international and business development. Since 2008 he has served as secretary of the executive board of Holland Casino.

The ECA is a fairly recent invention. Founded in 2005, the non-profit organization seeks to provide European casino operators with a voice that can be heard by E.U. policymakers in Brussels. Goudsmit was one of the founders of the ECA and in 2006 replaced Anders Galfvensjö, at that time CEO of Sweden's Casino Cosmopol, as chairman.

"The ECA was formed mainly as an attempt by the industry to get itself organized," says Goudsmit. "There was a need to have one body representing European casinos, triggered by the E.U. money laundering directives that came into force in 2004. At the time we had the European Casino Forum, but that was an informal group with few members and not properly organized. With the ECF we were missing relevant information, and we had no way to convey information to the E.U. because we had no proper representation."

So Goudsmit and a couple of others set up the organization and registered the ECA in Brussels. Today the group's members represent 23 nations and some 1,000 casinos, and ECA is regarded and accepted as the voice of the European casino industry.

These days a great deal of focus of the ECA is on the online gaming industry, the question being how to regulate it.

"That is a big issue for our members, and it varies from country to country. Some are already involved with online gaming and some are on the brink of getting involved. Somehow you have to try and work with Brussels to try and help find a solution, because the problem is just as big for them as it is for us."

The Council of the EU has an official working group studying the general subject of gambling, with online gaming just one of the major points. The working group is precisely the kind of body that the ECA needs to be able to assist with expert information, says Goudsmit.

One of the ECA methods for gathering information is to survey its members on a particular question. The group's website has a secure section where information can be accessed by the membership.

"You have at your fingertips information about how things are done in other countries around Europe," says Goudsmit. "It is a close organization, very open and friendly toward each other. There is a very open communication and exchange of information, something that has grown over the last couple of years and is very much appreciated by the members."

Goudsmit expects the European casino industry to move increasingly toward mixed entertainment, with less emphasis on gambling and more on amenities that make the casino an attractive place for an evening out on the town.

As for Europe-wide legislation from Brussels, he believes that might be a lot farther down the road, if at all.

"The Schaldermose report made it very clear that when it comes to Europe, there is a free market, but not for gambling," says Goudsmit. "The responsibility for gambling lies with the local governments, and I don't think that will change in the near future."

-Rich Geller

Traffic Control
Steve Rittvo
President, the Innovation Group of Compangies

As someone versed in urban planning and traffic engineering, Steve Rittvo has expanded his field of influence quite a bit since he was introduced to the gaming industry in the early 1990s. As head of Urban Systems, Rittvo was engaged by Chris Hemmeter, a hotel developer and one of the first bidders for the New Orleans casino, to study traffic patterns near the proposed gaming site. He later became the master-planner and principal analyst for that casino project.

"That was our introduction to gaming, and it was pure luck," says Rittvo. "Later, after Louisiana instituted riverboat gambling, I was able to option a piece of land in Lake Charles, right on the Texas border. We took that to 21 casino companies until we partnered with Players International. And we ended up with license No. 2 in Louisiana."

With the combination of consulting and being involved in his own project, Rittvo got up to speed quickly on gaming. But the real breakthrough was his ability to develop and refine forecasting models for casino revenue when gaming companies were considering jurisdictions and specific sites. The next big move for Rittvo was to partner with Jason Ader, who was at the time the leading investment bank gaming analyst with Bear Stearns. They developed the "Global Gaming Almanac," which reported revenues and forecasts for every gaming destination around the world.

"That allowed both of us to grow and become recognized as the leaders in our segments of the industry," says Rittvo. "We met most of the major players in the gaming industry during that time and developed a credibility that few companies had achieved up to that point."

The Innovation Group quickly became one of the leading consulting companies in the gaming industry. Rittvo partnered with Steve Szapor, the former president of the Sahara in Las Vegas, and the company began a rapid growth spurt. In the last few years, the company has added a financial division, headed by Matt Sodl, that funds projects up to $100 million; a marketing arm that does market research and develops marketing plans for smaller casinos; a food-and-beverage division that does research on customer preference and trends, while providing advice on business planning; and a management segment that can take over operations at a distressed property for the owners/investors if necessary. Another successful division has been the construction sector, headed by the former Harrah's/Caesars VP of construction, Bob Kelly, that assists tribes and small casino owners as the project manager for any new construction or renovation project.

On the international scene, Rittvo has been penetrating markets in Asia, South America and Europe. His knowledge of operations has been valuable to clients whose knowledge of the business came only in passing.

"We believe that the international market will be the most dynamic in the next few years," he says. "That's why we're concentrating on new jurisdictions with the possibility for healthy expansion and a reasonable regulatory system."

With the economic crisis, Rittvo is seeing a lot of activity in the company, particularly in the construction and management side of the business.

"We're offering a chance to reduce costs and effectively manage through this difficult time," he explains.

"There's a lot of opportunity for us to be able to leverage our experience to help those companies that may not know where to go at this point.

"We've moved from number-crunching to helping people set up programs that will really work for them."

-Roger Gros

Working Man
John Wilhelm
President, UNITE HERE

Working for a living is something that John Wilhelm knows intimately. Since graduating with high honors from Yale, Wilhelm has helped organize workers at the lower rungs of the employment ladder. As an organizer in New Haven, his persuasiveness allowed hotel workers to join the former HERE (the Hotel Employees & Restaurant Employees Union).

When he was appointed to lead organizing efforts in Las Vegas in 1987, a seminal moment for the gaming resort, his diplomacy and advocacy for the front-line and back-of-the-house workers paid dividends for both the city and the employees.

He describes the current dust-up about the "card check" provision of the proposed Employee Free Choice Act as a misdirection, and explains how card check worked for Las Vegas during that period.

"Remember, this was the period when all the major casino resorts were built in Las Vegas," he says. "We were able to organize all of them-except the Venetian-through card check. Now, granted, management agreed to allow us to do it this way, but I contend that the growth of Las Vegas during this time would never have been accomplished without card check. You had labor peace in Las Vegas during this entire period where both the casino companies and the employees prospered. It was good for everyone. Because I believe that any town that develops a reputation for labor turmoil has its marketing message undermined quite dramatically."

Wilhelm is always looking for the solution that works for everyone, and the one element that works for everyone in the gaming industry is customer service. 

"If we don't have customers, we don't have jobs," he says. "Steve Wynn has said many times: 'They come once for the building, but they return because they've been treated right.'

"That's one of the wonderful things about our industry. It's really a people industry, and it's not a cliché. We have to be attentive to people, whether they are employees or customers."

Indian gaming has been a target for UNITE HERE for several years. Wilhelm believes that workers in that industry need representation as much as in the commercial gaming industry, with one exception.

"There are some tribes in the gaming industry that have substantial employment in their casino that consists mostly of tribal members," he explains. "In that circumstance, I believe the tribes should have a degree of control much greater than a typical employer. In that case, where the tribe has opened a casino primarily to employ its own members, that's a unique business.

"But that's not the case with most tribes, which hire largely non-tribal workers for their casinos. In that case, tribes have to deal with the fact that their employees should be permitted to organize and improve their lives. I think they are undermining tribal sovereignty by refusing to recognize on a voluntary basis the rights of their employees."

UNITE HERE has never organized on the casino floor. Wilhelm denies that there is any "gentlemen's agreement" to ignore the dealers and other employees, but he does have sympathy for their plight.

"There's no question that some casinos have failed to respond to the concerns of the dealers, and they need someone to listen to them," he says.

But the UAW in Atlantic City and the Transport Workers in Las Vegas aren't the organizations that can effectively represent casino workers, Wilhelm says.

"I would never assume that I know how to effectively represent workers in those industries, nor would I know how to make those industries flourish," he explains. "The success of our union over the past 20 years, constantly growing, while other industries are contracting, may have given them the impression that it's easy to do. Our members know it's not, and that it takes years of work and effort."

While Wilhelm says he's not actively recruiting casino workers, he doesn't close the door to anything. 

"Someone needs to represent them and bring their issues to the forefront," he says. "But we've got our hands full right now."

-Roger Gros  

Family Ties
Mac Seelig
President, AC Coin & Slot Service Company

They say you can choose your friends but you can't choose your family. For Mac Seelig, his friends and colleagues are his family.

It started more than 30 years ago when casino gaming came to his home town of Atlantic City. As a small hotelier and vending machine operator, Seelig had to figure out how he could use gaming to better his family. While the answer was not as black-and-white as it might seem today, Seelig reached a deal with a small slot company called International Game Technology to distribute its machines in Atlantic City and the Caribbean. Because of a regulation in New Jersey that barred casinos from buying more than 50 percent of their machines from one company, IGT was able to overcome the substantial lead held by the then-slot giant Bally Manufacturing.

Over the years, AC Coin & Slot has itself become a game developer and slot manufacturer, joining a handful of companies that now chase IGT in that segment of the supplier market. But Seelig's stature has never been greater in the industry because of what he's been through as a businessman, and his deep involvement in charity work and community participation. And the addition of his wife and sons as directors of the company has truly made it a family affair. 

Seelig served as an introduction to the community for IGT, which allowed the company to be recognized as a leader, first in Atlantic City, and later in the world. He says that the new leaders heading up gaming companies today give him hope for the future.  

"The new guys coming are pretty amazing when you consider their level of intelligence," he says. "They're Cornell, Harvard, Drexel, Wharton... these are really impressive guys.

"In the old days, we just shot from the hip. This new generation is much more calculating. The industry is changing. There are new customers who we must appeal to and diversify ourselves beyond gaming. We're the hospitality entertainment industry today, not the old-time gambling business."

Seelig and his family have raised thousands of dollars for causes in Atlantic City and beyond over the past 30 years. He says his company isn't alone in those efforts, but bemoans the fact that it isn't recognized as much as it should be. 

"The worst job we've done as an industry is to not highlight enough how much we do for the communities," he says. "In my 30 years of being involved in this business, the industry has done an unbelievable job of getting involved in our communities, but we get very little recognition. Pound for pound, no industry comes close to what we do. And it's across the board."

For his company, Seelig says he's lucky that he didn't go public when he had the chance a few years ago. It has allowed him to maintain control of the company and spread the family influence. 

"The good news is we've had no management changes in the last 30 years," he laughs. "And the bad news is that we've had no management changes in the last 30 years. We believe in strong core values that our family holds. Some people buy into it, others don't. It's great to have a group of young men like my sons who believe in what we're doing."

Because of this close contact with the industry, Seelig says his company is positioned well for the future.

"We think we're closer to the market than the other companies. We live on the streets with the players and the operators, so we have an advantage that most of the others don't have."

-Roger Gros

By Desmond Lam   Wed, Sep 09, 2009

It is not hard to figure out why Chinese are known around the world for their high aptitude to gamble. You just need to look back through time and will quickly realize that the Chinese people have a long-documented history of gambling. The first record of gambling can be traced back to the first dynasty some 4,000 years ago. Gambling was recorded in every dynasty since then. In fact, many modern games like lottery, pai gow, tien gow, fan tan and mahjong are thought to have originated in China.

From the middle of the 1800s to the early 1900s, Shanghai was a magnet that attracted many Chinese gamblers. They played a variety of local and foreign games including roulette in its large gambling complexes. These establishments could be found in the Shanghai International Settlement and Shanghai French Concession.

At the same time, Macau's Portuguese government legalized gaming in 1847 and hundreds of gambling dens began to flourish. While civil war in China eventually led to Communist rule and hence the end of all commercial gaming, Portuguese-run Macau became a "permanent gaming region" in 1961.
    
Today's Gamblers
Nowadays, legal lottery is available in most Chinese cities, Hong Kong, Macau, Taiwan and Singapore. In Singapore, for example, Toto and 4D are the most popular forms of lottery gaming among its local Chinese residents. Modern horse racing betting is also available in Hong Kong, Macau, Singapore and on trial in Wuhan, China. Casino ships are anchored in Hong Kong and Singapore. Every week, these ships fetch thousands of eager ethnic Chinese from mainland China, Hong Kong, Taiwan, Indonesia, Malaysia and Singapore to gamble in their onboard casinos. What they call "a cruise to nowhere" actually means gaming on international waters to some people.

Macau, Asia's Las Vegas, has already overtaken Las Vegas as the biggest gaming city in the world today. More than 15 types of games are available in Macau's 32 casinos. With a casino for every one square kilometer, Macau is officially a powerhouse of global gambling. In 2008, 23 million visitors crossed its border and studies revealed that slightly more than 50 percent of these visitors gambled in its casinos. Baccarat, or "baak ga lok" in Cantonese, is the game of the day. It accounts for more than 85 percent of Macau's gross casino gaming revenue each year. In the next few years, analysts will be watching closely the rapid development of integrated resorts in Singapore and Taiwan. These establishments will have significant casino gaming components.  

In fact, an examination of history shows a strong need for gaming entertainment among Chinese officials and commoners for thousands of years. The extensive establishment of games and gaming venues across Asia for Chinese people is indeed extraordinary.

Surely, a strong demand for gaming must have led to the massive supply of games and gaming venues. To examine Chinese gambling would require us to look beyond Chinese gambling history. Culture plays a key role in Chinese gambling. But yet, it is incorrect to say that Chinese culture has directly encouraged Chinese people to gamble more than any other cultures.

On the contrary, traditional Chinese values as advocated by Confucius should have discouraged gambling since gambling, as a human activity, was deemed to be wasteful and could potentially lead to social disorder. In the past, social order was important for the management of large Chinese society, something that ancient rulers have always strived to achieve. In fact, gambling has been subjected to control and sometimes ban over the history of China.
   
Culture Clash
Culture can take different forms and have different effects on people. A number of studies have shown that Chinese gamblers have exceptionally high illusion of control. They believe they can control the outcome of gambling events, be it baccarat, blackjack, sic bo or lottery. This characteristic of Chinese gamblers may have to do with the influence of Chinese beliefs and values. Confucianism, Daoism, Buddhism, folk religion and ancient beliefs all play a crucial role in shaping modern Chinese people. Confucianism, in particular, laid the foundation for modern Chinese values.

It seems that ancient belief of heaven/earth and rituals to please the gods is a starting point for further development of Chinese people's obsession with the supernatural (e.g. luck, feng shui, fate and destiny).

Three major religions, namely, Confucianism, Daoism and Buddhism, adopted many ancient beliefs and practices. While Confucius' philosophies hold a central role in shaping modern Chinese thoughts and behavior, Daoism's obsession with longevity and/or immortality has made the religion seem almost too supernatural. While ancient Daoism focused on "The Way" for individuals and harmony with the world, modern Daoism has evolved dramatically. Buddhism, an imported religion from India, also has its fair share of supernatural and magical folk tales (like Daoism). These three religions and/or philosophies (Confucianism, in particular) have, over thousands of years, shaped the thoughts and behaviors of Chinese people (also Japanese, Koreans and Vietnamese) into the way they are.
   
Ceding Control
One of the many Chinese traits that may have resulted from these influences is an external locus of control. Chinese people were found to have a higher external locus of control over their Western counterparts. It means that Chinese people believe that luck, destiny, chance and powerful others control their lives more than themselves.

An external locus of control can potentially lead to higher illusion of control on the gaming table. Superstition aggravates illusion of control. Chinese people's unique form of superstition on lucky/unlucky objects, feng shui and numbers has added to their high illusion of control. However, this has also somewhat enhanced the value (i.e. entertainment, fantasy and escape) that Chinese people obtain from gaming.

High illusion of control may then lead to high risk-taking and/or more gambling. Chinese gamblers' illusion of control is often portrayed in Chinese gambling-theme films. There are at least 60 Chinese gambling-theme films produced since the 1960s and a number of television drama series that featured Chinese gambling as the main theme.

While culture plays an important role in shaping the Chinese people, external forces may also explain why Chinese people gamble as much as they do. The transition from poverty to prosperity, the widening gap between the poor and rich and the hunger for achievement can all explain to a certain extent why Chinese people take such excessive monetary risks when they gamble in Macau.

However, many nationally representative studies have found a large percentage of Chinese people in Hong Kong, Macau and Singapore gamble for fun and entertainment, and not for money. Very few studies, however, have investigated the mainland Chinese aptitude to gamble. We can, however, get some cues from those mainland Chinese who gamble in Macau. Needless to say, they seem to be most interested to beat the house and win the monies.
   
Traditional Games
One thing's for sure: To the Chinese, social gambling is a very common activity. There is no fuss about it. Mahjong playing, for example, is often conducted among Chinese worldwide. It is said to help the elder Chinese people to think better and is a joyful thing to do during Chinese wedding dinners and even funeral wakes. It is a celebrative game for all Chinese people. Gambling is also perfectly all right for anyone, including the young, during festive periods like Chinese New Year. Perhaps these attitudes toward social gambling are a reflection of Chinese values and culture.

Gambling is simply social activity that has been performed by the Chinese people for thousands of years. There is fundamentally nothing wrong with it. Yet, it is considered a taboo when practiced/performed excessively. A Chinese person who falls into a gambling pathology is simply someone who cannot control his own actions and is morally a bad person. There is no sickness; he is just a weak-minded person.

Interestingly, research conducted in several countries found a higher problem gambling rate among local Chinese population compared to other ethnic groups. This may be linked to illusion of control and environmental factors as explained earlier.

The recent explosion of casino gaming in Macau has some analysts, government and social groups wondering if problem gambling has increased proportionately with an expanded market. This, coupled with the notoriously well-known, high risk-taking characteristic of Chinese gamblers, makes Asian gaming regulators and the public increasingly worried about the adverse consequences of legalizing gaming. In fact, media coverage of Chinese problem gamblers, who have squandered millions in public funds and committed other gambling-related crimes, appears to be on the increase since the gaming liberalization. 

The world of Chinese gambling is huge and expanding. As gaming businesses and government regulators struggle to manage an expanded Chinese market, more should be done to better understand our Chinese gamblers. Needless to say, a thorough understanding of the marketplace is the key to any successful business and government policies.

By examining Chinese gambling from multiple perspectives such as history, culture and psychology, one can then begin to understand why Chinese gamblers behave the way they do, and how we can manage their gambling consumption. 

By Frank Legato   Wed, Sep 09, 2009

The people of Pittsburgh, Pennsylvania, are a loyal bunch. You can travel the country and not find people who are more devoted to their community, their city, certainly their sports teams.

That's why, when it became apparent that Pittsburgh would host a casino, it was obvious to everyone that a sparse slot barn or typical glitzy neon palace would not do. It would have to be something special, and it would have to honor the local culture and history of this former steel town and its people.

Last month, it became clear that the city's sole casino would do just that, with the opening of the Rivers Casino.

The Rivers Casino originated with an application from Detroit developer Don Barden in 2006, one of three for the Pittsburgh license. Initially, it seemed the least likely to win.

First of all, the proposed site was in the North Shore neighborhood, on the Ohio River right next to Heinz Field, home of the beloved world-champion Steelers, and near the Pittsburgh Pirates' PNC Park. The Rooney family, Steelers owners, came out early against the plan. Opponents decried the potential traffic nightmares that would ensue from a casino in close proximity to both major sports stadiums. (The concerns would eventually prove baseless.)

Secondly, its location would make the casino a prominent part of a Pittsburgh skyline that many view as one of the nation's most beautiful-a clean, attractive riverside cityscape that is a far cry from Pittsburgh's historic "Smoky City" identity. Local "skyline watchdog" groups sprang up to oppose the project.

Finally, most of the early money was on the bid of Isle of Capri Casinos, which had promised to create a sports and entertainment complex that included a new arena for another beloved Pittsburgh world-champion sports team, the NHL's Penguins. Barden's bid was not even the second choice of most-Harrah's had partnered with a Cleveland developer to bid on another riverfront location, the historic former railroad station-turned-retail complex called Station Square.

The Pennsylvania Gaming Control Board picked Barden's bid, and board members were roundly criticized for the choice.

Last month, they were vindicated.

They were vindicated by the grand opening of what is arguably the most attractive casino complex yet to open in the Keystone State. The $780 million facility, a masterpiece of modern casino design, opened at noon on Sunday, August 9 to a salvo of fireworks, confetti and streamers. Customers had waited for hours in sweltering heat to be the first to sample what is Pennsylvania's first urban casino-on the outside, a sleek, silver structure that blends seamlessly into the riverside cityscape; on the inside, a first-class, 150,000-square-foot slot floor (only 120,000 square feet are used for the first phase) with beautiful, riverfront restaurants and many elements no other Pennsylvania slot house has yet offered.

"Are you ready, Pittsburgh? Because this is your casino!" Rivers President Ed Fasulo told the crowd of gamblers anxious to be the first in the doors. "It's been a long couple of years, but our casino is ready. All it needs is people inside!"

The people were more than ready to comply, shouting out "Open the doors!" as a parade of local dignitaries and executives of the casino's parent company got up to the podium to speak.

One of those speakers was Barden, the original licensee for what had been planned as the Majestic Star-the brand of Barden's Midwest riverboat casino. The "long couple of years" to which Fasulo referred was particularly long for Barden, who viewed the Pittsburgh casino as his masterpiece, bringing in distinguished casino designers like architect Bergman Walls and interior designers Cleo Design and Floss Barber (see page 40) to create a facility that would make the most of a prime riverfront location.

Then came the recession.

Barden had arranged the majority of the financing, but the last portion of the package fell through. The developer saved the project by surrendering his majority ownership of the casino to an investment group headed by Chicago billionaire Neil Bluhm, who provided the remainder of the financing and, through Acquisitions Holdings Company, the casino arm of Bluhm's Lamb Partners corporation, purchased the majority of the equity in the project.

Greg Carlin, CEO of Acquisitions Holdings, made a few changes to the design, but left Barden's vision largely intact. He also retained Fasulo, a well-respected 40-year casino operations veteran, as the property's president.

Barden, who retained 20 percent equity and is thus still a major stakeholder in the casino, thanked Bergman-Walls and the rest of the design and contracting team for "making my dream come true. This is a world-class facility, as I promised."

In an interview with GGB, Barden, who also is on the casino's three-member board of directors, added, "No one can take away the legacy and our contribution here, no matter what. I'm very proud of that. I'm very proud of this casino."

Local Color
The Rivers Casino opened with the maximum start-up contingent of 3,000 slots. (The casino can petition regulators for another 1,000 next year; and for another 1,000, bringing the facility to the maximum 5,000, in two years.) However, the games-which, Fasulo notes, are the absolute newest games in the business-are only the beginning of the story.

Rivers is designed to play to the local population, and the regional pride of what is, in the end, a huge market. "There are 2.4 million people within a 50-mile radius," Fasulo says, adding that feeder markets in Ohio like Cleveland, Youngstown and Steubenville are providing an additional boost. "There is tremendous interest from there," says Fasulo. "I've got bus operators calling and telling me players are calling them all the time asking to come here."

The way you play to the local market in this part of the world? You make them feel at home.

The amenities carry Pittsburgh names: The high-end steakhouse is Andrew's, in recognition of the city's famous "Andrews"-Carnegie, Mellon and Warhol. The pizza-and-sandwich stop is called the West End Café, which is a reference to the West End Bridge, a stone's throw from the casino. (The place offers a complete lineup of local favorites on the menu as well.) The buffet is called the Grand View, which is as much a reference to the panoramic river view out the windows as it is to Grandview Avenue on Mount Washington, which, as any Pittsburgher will
tell you, offers the best possible views of the cityscape from a string of hilltop restaurants.

"We've positioned ourselves as Pittsburgh's casino," Fasulo says. "Because of the loyal nature of the people here-they're very patriotic, they love their teams-I thought if I could tap into that loyalty, it would be a great way to position ourselves." But the need to please the local community goes way beyond basic marketing. According to Fasulo, institutions like the Carnegie Science Center, the Riverlife Task Force riverfront development group and the sports teams, all dead-set against the casino early on, have been won over.

"Once we had them over and gave them tours, they said, 'Wow, this is a lot better than I thought.' We spent a lot of money on our riverfront landscaping. It's the best-looking damn place anywhere along the river. Once we showed them, they were on board. When they see what we have-the workmanship, the quality restaurants-it changes their minds dramatically.

"We've convinced most of them we're not the bad guys," Fasulo says. "We want to be business partners in the community. We don't want to be looked at as those casino guys across the river. We're part of Pittsburgh. We want to be part of everything this city has to offer."

First Team
The riverfront location and quality of the facility are not the only positives Rivers inherited from Barden. Carlin wisely kept the top executives hired by Barden-chief among them Fasulo, a seasoned casino veteran whose first job was F&B director at the International in Las Vegas when the property opened in 1969 (he used to open the kitchen up for Elvis Presley's snack time).

Between then and now, he ran the Four Queens in Las Vegas, took the Playboy in Atlantic City to solvency as the Atlantis before selling it to Donald Trump, helped plan and design the Palms for the Maloof family in Las Vegas, headed Ameristar Council Bluffs and worked as a consultant for the Barona tribe in California. When Barden tapped  him to head up the Pittsburgh project, he says, two things appealed to him. "One was that it was a ground-up project; I've done a couple," he says. "The other was that you get to create the culture of a place."

That culture is "openness and candor; very team-member oriented and friendly," says Fasulo, who calls himself an old-time "MBWA" operator-for "manage by walking around." At Rivers, the "walking around" part is often spent greeting employees by name, and making sure everyone is happy-Fasulo's philosophy is that his employees are the most vital key to success in this business.

"I talk to them daily about how 'you team members are our key differentiating factor,'" Fasulo says. "I bring my executive team to every orientation we have for new team members-my entire management team, 18 of us. Each member of the management team says something. It's a personal introduction. Whether you're an EVS or a pot washer in the kitchen, you get greeted by the general manager, five VPs and 14 directors. That's got to make an impact. We start talking right then and there about how important they are, and how we rely on them to differentiate ourselves."

This attitude is more than just words. Fasulo commandeered a prime riverfront spot originally pegged for an Italian restaurant and transformed it into what's got to be one of the nicest employee cafeterias in the business. "For us to differentiate ourselves, I've got to keep these folks happy!" he says.

First at Rivers
The amazing employee cafeteria is one of several tweaks Carlin and Fasulo made after the ownership change, and it's also one of several first-in-Pennsylvania features of the Rivers Casino.

The Grand View Buffet is another one. It is the first full, Vegas-style buffet restaurant to be offered by a Pennsylvania casino-it offers five international food stations, along with the same killer river view as the gourmet steakhouse.

Other firsts can be found on the casino floor. Chief among them is a riverside VIP lounge for the highest of high rollers. "There wasn't a VIP room in the plans," Fasulo says. "At my last two properties, Ameristar and Barona, we had a VIP room, and they can be very successful if used correctly. It's a very high-end room, designed along the lines of a traditional, private country club."

There is a standing fireplace, a great view of the property's riverside amphitheater, and complimentary food and beverages. Membership is restricted to the top 800-1,000 players in the casino's player's club, as evaluated every six months.

And the name? Club 446. The number comes from the fact there are 446 bridges in Allegheny County. "It's a great conversation piece!" says Fasulo.

Another first for Pennsylvania is a full high-limit slot room, also conceived by Fasulo. It's an elegant, 120-machine room that includes the state's only $500-denomination slot machine. "I've got the best VIP room in the state," Fasulo says. "There are a couple of small ones in the eastern part of the state, but nothing like this."

The high-limit room is right next to Club 446, and next to another Fasulo addition, the electronic table game pit. It includes not only the virtual blackjack that every other Pennsylvania casino has, but the first IGT MP virtual roulette game in the state.

Among the other features added by Carlin and Fasulo are the Levels Bar and the Wheelhouse sports bar, coming in October. According to Fasulo, Levels was created because Carlin wanted a bar open to the casino to replace Barden's original vision of a private bar closed off from the action by drapes. It has several different levels of seating, all offering different views of the casino action. Wheelhouse will be a classic sports bar overlooking Heinz Field, to open in the thick of football season. Fasulo says there is space on the second floor above the bar that will allow it to transform into a nightclub after dark.

Another F&B creation of Fasulo is Ciao, an elegant Italian bistro off the casino floor that offers wine by the ounce-bottles ranging from $20 to $200 are lined up, so customers don't have to break the bank to try the finest vintage.

The most iconic F&B feature of Rivers, though, has to be the Drum Bar. Included in Barden's original plan, the Drum Bar is a circular bar overlooking the river. After Cleo Design conceived the interior, it subcontracted the bar's central feature-a multi-story, conical display that can be seen from across the river-to legendary sign producer YESCO. The sign-maker provided a fully computerized display, that can change its appearance with the seasons.

In all, Rivers is a gem of a facility, particularly given the high cost of doing business in Pennsylvania. Not only does the 55 percent tax rate take its toll; the new owners are keeping every commitment made initially by Barden. That means $7.5 million a year for seven years to help pay for the Penguins' new arena, as well as $6 million a  year to help out the distressed Hill District neighborhood-plus a generous package for the employees that includes a 100 percent match of the first 3 percent of salaries going to a 401K plan.

Barden will get over the cost through aggressive marketing, he says, using what he considers the best of Pennsylvania rules-no tax on free play-to reward loyal players. He notes that the slot system being used-Konami's KCMS-makes it easy because it allows both downloads and uploads of promotional credits right at the slot machine. Rivers is the largest casino yet to install the Konami system, which Fasulo says is among the most reliable he's ever seen. (And he's seen a few.)

Throw in some classic Atlantic City-style bus marketing, and Fasulo says he will get the word out about what he considers the best casino in Pennsylvania, and one that's on par with any in the industry.

"Even though there are 2.4 million people in the market, they can just as easily drive an hour in the other direction," Fasulo says. "We've got to make sure they come here."   

By Frank Legato   Wed, Sep 09, 2009

This is one of the greatest casinos not only here, but anywhere in the country." So declared Pittsburgh Mayor Luke Ravenstahl at the grand opening of the Rivers Casino.

Visually, few would disagree. The Rivers Casino is a beautiful place, whether viewing it as part of Pittsburgh's North Shore skyline (that's the north shore of the Ohio River) or touring its casino floor and restaurants.

The design of Rivers, appropriately, reflects the beauty of Pittsburgh's three rivers, and according to the designers who created it, that was the whole point.

Scott Walls, principal of lead architect Bergman Walls & Associates, says the firm started with a "blank piece of paper" in approaching the design of the building, but the rivers quickly became a theme. During the project's design phase, it wasn't even called "Rivers;" it bore original licensee Don Barden's Majestic Star brand. Without thinking of its name, Walls says he was very cognizant of the local pride in the city's architecture, and conceived a building that would blend right into the riverside cityscape.

"We took the contour of the rivers, the fluid lines of the water, and incorporated it into the concept of the building," Walls says. "You'll see the curves in the facade along the river, which has a flowing motion to its shape, as well as subtle lighting that moves across the facade to simulate the flowing waters."

Viewing the building from the most popular overlook-across the river and up Mount Washington to a well-known hilltop perch-it looks almost like it's always been there. "We used no glitter; it is all subtle lighting," Walls says. "It blends in very well with the Carnegie Science Center (right next door). There are no flashing lights, no blinking lights, no big reader boards. We truly tried to work with the city to protect the view, and we're proud we were able to pull it off."

There actually is one unusual visual aspect of the exterior, but it's actually part of the interior. The sculpture created by sign company YESCO for the iconic "Drum Bar" provides a light display that provides a touch of flash to the laid-back look of the casino's exterior.

It is the only real touch of Vegas in the design, made for a bar that is one of this property's truly unique features-a two-and-a-half story drum with a circular bar at the bottom. The drum is a computerized light show formed into a chandelier.

The Drum Bar was created by Las Vegas-based Cleo Design, which created most of the interiors at Rivers. According to Ken Kulas and Ann Fleming, principals of Cleo, the approach to the interiors followed the river-friendly design of the exterior, although it was modified by the preferences of the casino's president, industry veteran Ed Fasulo.

"The first draw of interior design is to flatter the architecture, which is extremely contemporary," says Kulas. "Adding direction from the owners, we made it a little more elegant, very warm and inviting, and very comfortable. There's a hint of tradition in there as well, so the overall effect has a timeless look to it. We chose lots of red and orange and peach tones, and used a great deal of wood, wood veneers and wood finishes-both light and dark woods, so they would contrast each other and give the space a lot of drama."

The result of this approach is a casino that is bright and cheery as one walks the floor, and a blend of elegance and comfort in the restaurants and lounges. Nowhere is this more evident than in Club 446, the high-roller lounge. "Ed had requested we make it extremely plush, with oversized seating groups, a wonderful fireplace, tremendous views and great amenities," says Kulas. "The nice thing is that it's very understated and downplayed, almost like a private club."

His favorite creation? Levels, says Kulas. It is "quite an electric-looking lounge" in the middle of the casino floor, with seating on several different levels. "It's almost like a little place to watch the casino-to see and be seen."

Fleming's favorite contribution to Rivers is the second-floor corridor that leads to the buffet-it is a microcosm of the overall design, with a balcony to view the ultra-modern Drum Bar on one side and a hard-wood wall on the other, housing a display of local petrified wood. "You can see the beautiful path to the buffet, with beautiful wood on one side; it feels very rich," says Fleming. "The 'buffet' term has always been downgraded, but this facility really upgrades it-it feels like an upscale restaurant... and those gorgeous views!"

It all comes back to the river-and river views define much of the design of this casino, particularly in the restaurants lining the river side of the building. Floss Barber, principal of Philadelphia-based Floss Barber Inc., says her task in designing three of the facility's restaurants was to make the most of their locations. And two of them-Andrew's Steak and Seafood Restaurant and the soon-to-open Wheelhouse sports bar-are on the river.

The other, the elegant Italian bistro Ciao, is on the casino floor near the parking garage-the first and last thing most customers see. (Hence the name, which means both "hello" and "goodbye.") Its main design feature is fantastic Italian marble, along with a unique by-the-glass wine bar.

"We felt all three venues held their own place in relationship to the overall casino floor," says Barber. "Two of the venues offered a unique opportunity to capitalize on the unbelievable views of the Ohio River and the city skyline of Pittsburgh."

At Andrew's, the river dominates. "To accentuate the impact of this spectacular view, a visual screen was designed with the juxtaposition of solid forms with open voids framing the view and providing a tease of what lies beyond," Barber explains. "Upon entering the venue and the main dining area, customers are wowed by the river view and its close proximity. The materials and color palette integrated into the design are enhanced by the 18-foot-high perimeter glazing system, creating an interior environment where the lines between the indoor and outdoor spaces begin to blur." (There's a terrace to take in the views of the city during warm months.)

Barber is designing the Wheelhouse to "feel as though it is carved out of the side of the building, again creating a perceived seamless transition from indoor to outdoor environments," she says. This bar, inspired by the local passion for sports, will overlook Heinz Field, with great views of both the football stadium and PNC Park, home of the Pittsburgh Pirates.

Bottom line? Rivers Casino lives up to its name.

By Frank Legato   Wed, Sep 09, 2009

They say no one's building anything in the casino industry these days. They say the recession has stopped expansion in its tracks and stalled every new project.

Not in Pennsylvania.

The opening last month of the Rivers Casino in Pittsburgh was actually the third major casino opening in Pennsylvania since spring. The first came in April, with the opening of the massive permanent casino at the Meadows racetrack south of Pittsburgh-a 350,000-square-foot gem that combines the classic Vegas style of owner Cannery Casino Resorts with the world of horse racing, in a design that emphasizes the popular harness track. (See our May issue for details.)

The second came a month later, with the opening May 22 of one of the most unique offerings among Pennsylvania slot parlors, the Sands Casino Resort Bethlehem.

The opening may have been sandwiched between a new racino and the state's first urban casino, but Sands Bethlehem undoubtedly deserves its own highlight reel in this remarkable Pennsylvania expansion season. The Sands opening was good news to a lot of people in Pennsylvania's Lehigh Valley, a region that has seen its share of bad news over the past few decades.

In fact, the Sands was built on what was the epicenter of that news, the former Bethlehem Steel Works. Before it was shuttered in 1995, the steel plant in Bethlehem, Pennsylvania had helped arm the Allied Forces in World War II, and had provided employment to generations of Lehigh Valley residents.

For a decade after the plant closed, it appeared Bethlehem Steel Works would join the other rusting hulks in the ruins of Pennsylvania's industrial past. This one, though, would be reborn, thanks to Las Vegas Sands Corp.

The $743 million casino sits on the easternmost 124 acres of the original 1,800-acre Bethlehem Steel Works site. The familiar Sands logo-the same one that graced the iconic Las Vegas home of Frank, Dean and Sammy-graces an entryway that is built from one of the ore cranes from the original steel plant. It is one of 20 of the original structures of the steel plant that have been preserved in the casino plan.

Other artifacts, like the High House once used to make battleship guns, are part of a complex that eventually will include a hotel, a major retail center and multi-purpose entertainment venues and meeting space. The credit crunch halted the other elements, but the main draw, the casino, opened in May.

According to Sands Bethlehem President Bob DeSalvio, the casino's 3,000 machines will carry the project until work on the hotel, retail promenade and other portions of the integrated resort can be finished. The demographics of the Sands' location have given the project a jump-start.    

"If there's going to be one area in Pennsylvania where you want to be, it's the Lehigh Valley," DeSalvio says. "Demographically, there are a million people within a 25-mile radius of the site. Within a 75-mile radius there are 17.2 million people. We pick up markets in North Jersey, New York and Philadelphia."

Even more important, though, is the local community. "The site is a revered site," says DeSalvio. "When you think of the Bethlehem Steel story, it's really a story of the building and defending of America. So much was done here. So along with this great opportunity comes a responsibility to make sure we do the right thing on the site."

According to DeSalvio, people who spent good portions of their lives working for the steel plant tell them they got it right. Since many original plant buildings are being preserved, the casino worked with architect RTKL Associates and interior architect Walsh Bishop to make the ground-up casino building actually look like the original works.

"A lot of people say they feel like it is almost a converted steel building," DeSalvio says. "They can't believe we actually built it ground-up, because it looks so authentic to the original. That's a real compliment to the architecture and design team." Former Bethlehem Steel workers-many now employed at the Sands-agree. "We have a number of people on site who are either former Bethlehem Steel employees or had family members who work here, and they all feel pretty good about it-especially the older generation who comes in and sees the property," says DeSalvio. "Some of theme have even been reduced to tears."

The casino has provided a long-needed boost to the local economy, and DeSalvio says it has given out-of-towners a good look at other things Bethlehem has to offer. "The local hotels have actually seen a nice increase in occupancy already," he says. "We have an incredibly beautiful downtown district in Bethlehem, and a really neat, eclectic south side. The area is very rich on culture, tourism, art and music. This year marked the 103rd annual Bach Festival! When you have festivals with a 'hundred' in front of them, it tells you how ingrained music and culture are in the community."

In addition to the slots, tables and electronic table games, Sands has attractions like Emeril's Chop House, the first restaurant in the Northeast to be created by celebrity chef Emeril Lagasse. "The restaurant has taken off like I cannot believe," says DeSalvio.

Emeril's is one of a great collection of restaurants that will be joined by a world-famous deli in the next expansion. When that's built, it will no doubt be joined by other new Pennsylvania expansion projects. Look for the next one in December, when Philadelphia Park opens a huge permanent casino called "Parx." Then, next year, here come the Philadelphia casinos.

Recession? Not in Pennsylvania.  

By Frank Legato   Wed, Sep 09, 2009

Multimedia Games, Inc. is well-known in many industry circles. The company will soon be known in many more.

The Austin, Texas-based company made its name as a supplier of successful Class II electronic bingo games in the late 1990s, achieving much success in Oklahoma and Mexico before parlaying its specialty-the central-determinant system, in which game outcomes are determined by a central computer-into a new market, video lottery.

The company secured (and has retained) the contract for the system that runs 13,000 machines in the state of New York's central-determinant "finite pool" video lottery system. But the company's bread and butter, the Class II market, was changing-the field of suppliers was becoming more crowded, with established companies like Multimedia and Cadillac Jack joined by Class II games from traditional Class III suppliers like Bally and IGT. Finally, when Class II markets in Oklahoma, California and elsewhere began introducing traditional Class III slots into their markets, the company's growth path became clear: Multimedia would become a Class III supplier.

But first, a lot of change was to come within the company itself, beginning when Anthony Sanfilippo joined in June 2008 as president and CEO. Sanfilippo brought with him a unique knowledge of what operators need from Class III slot suppliers, having spent 23 years with Harrah's Entertainment-including long stints as head of Central Division and Western Division operations.

Before he could expand Multimedia's reach in the Class III universe, though, Sanfilippo would need to make some changes. "No one in the organization really understood the (commercial casino) gaming side of it," he says. "We lacked people with actual gaming experience, and as a result, we couldn't relate to who we were selling the product to.

"Our first priority was to make certain we had the right talent in place to execute our plan-to focus on what our company has done well in the past, to identify the opportunities that lie ahead of us, and most importantly, to ensure we focus on those opportunities that will produce profitable revenue for our company."

Over the ensuing 12 months, virtually the entire management team of Multimedia was changed. Many of the new execs are Sanfilippo's trusted associates from Harrah's: Chief Operating Officer Patrick Ramsey was Harrah's corporate vice president and associate to the vice chairman. General Counsel Uri L. Clinton was vice president of legal affairs for Harrah's Central Division, and was with the operator's legal department for 10 years. 

A key addition was Ginny Shanks as chief marketing officer. Shanks is a 25-year marketing veteran who most notably was senior vice president of brand marketing for Harrah's.

Sanfilippo brought in top-flight executives from outside Harrah's as well. For the CFO position, he tapped Adam Chibib, a veteran financial consultant who served as chief financial officer for several technology companies in Texas. And on the game sales side, he brought in a seasoned veteran of the Class III slot manufacturing sector, Mick Roemer.

Shanks brought invaluable brand management skills to the company. "Prior to Ginny's joining the leadership team, Multimedia lacked a systematic and disciplined approach to thinking about the products under development," says Sanfilippo. "We had 160 game titles under development, but those titles were not part of a well-planned product strategy. Under Ginny's leadership, we have reduced this from 160 to about 50 titles that we are working on at any given time. We really focus on what the customer thinks, and whether a game is going to resonate with the player."

Roemer brings unquestioned expertise in product sales, marketing and management-as well as product development skills. His early résumé included working on-and naming-the venerable Megabucks game for IGT, and a stint as senior VP of product development at Bally Technologies, in addition to executive sales positions at Bally, VLC, IGT and Anchor.
 

"Mick is a seasoned veteran who truly understands what it takes to get a product from the concept stage out to market," Sanfilippo says. "He also provides us with good strategic thinking regarding how we roll out new products, which is an area of expertise this company lacked before he joined us."

With Roemer's addition earlier this year, the stage was finally set for Multimedia's move into Class III markets.

Sport of Kings
Multimedia's introduction to many Class III operators will likely be a game that is already drawing positive feedback in Oklahoma. "Sport of Kings" is a community-style penny video slot that features a competitive horse race as the bonus.

According to Roemer, the game's strength is in its simplicity. "Everyone understands a horse race," he says.

"The animation is great. You collect tickets during the game, and bet those tickets on one of the horses. Every six to eight minutes, a race will go off, and if you have a ticket, you get into the race. The award is a coin amount based on your wager in the primary game. That determines the range of what you win. Everyone wins something in the bonus."

The "tickets" are actually multipliers that are earned through primary game play. The prospect of winning more by wagering more means the game promotes high average bets.

Like other community-style games, Sport of Kings utilizes a computer controller to link the games. In this case, a variety of Multimedia primary slot games are used. "We have a whole library of games approved," Roemer says. "There are five or six games in the initial launch, but there's a pretty big portfolio behind that."

Sport of Kings is currently in three Oklahoma locations, and according to Sanfilippo, early feedback is very positive. The company is already in the process of developing a second community-style game.

Multimedia's other big product out of the Class III gate promises to be "Casino Commander," a tournament system first deployed in Class III Oklahoma installations at the end of July. The system places up to 60 slots on a network to automate the tournament function.

"Using whatever products you have on your floor," says Roemer, "you can download a tournament-style, 150-percent game, time the play, track the players, ad post names according to where they sit. We will automate the accounting process, provide a leader board, and provide winners with reinforcement. When the tournament is done, the system does the accounting, refreshes and returns the machines to revenue games."

Roemer notes that while initially, only Multimedia slots can be linked to the Commander system, in the future, the system will be further developed to accept the slots of any manufacturer.

"Our Casino Commander system makes it very easy for a casino operator to switch from an 'in-revenue game' to an 'out-of-revenue' tournament game," Sanfilippo says. "It has been out in a Class II version for a few years."

The first Class III Casino Commander system is in place at the Chickasaw tribe's Winstar casino outside of Dallas, Texas. According to Roemer, the company also recently won a major contract with a California casino to install the system. "We were in competition with Spielo and IGT, and our system beat theirs hands-down," he says.

The coming Global Gaming Expo will provide a vehicle to introduce not only these products to commercial casinos, but Multimedia's growing library of Class III slot games. Games that have been popular early on in Class III markets have included the ancient Egypt-themed "Queen of the Desert" and "Ernestine's Ringy-Dingy Reels," a clever game utilizing Lily Tomlin's telephone operator character from Rowan & Martin's Laugh-In.

Multimedia also has a huge library of video slot content that was first popularized in Class II markets, and has introduced a three-reel mechanical product. As the reel-spinning library begins to grow, the company plans to introduce a five-reel mechanical product at the G2E show.

Finally, the growing game library is accompanied by a new high-definition video format in a proprietary cabinet called "Player HD."

"Player HD features a high-definition, 23-inch screen that the players seem to really enjoy," says Sanfilippo. "We continue to receive terrific player feedback for games played on this cabinet. The content we offer is important, but the packaging is equally important. We need to make sure the entire package is appealing to the player from entertainment value to comfort level."

Rolling Out
The rollout of Multimedia's Class III products that began in Oklahoma is continuing now in California, where the company has been licensed by several tribes. From there, says Sanfilippo, the company will move to Mississippi, Louisiana, Minnesota, Wisconsin and Florida. "Those are jurisdictions where we have not been licensed (in Class II), so that's the first wave we're focused on," he says.

"Our plan from here is to develop a product that is robust, reliable and interesting, and will perform well in casinos. Our strength is our respective base of knowledge and the experience we all bring. We believe there is a demand in the market, and we've made sure there's talent in our organization to deliver on our plan. It's beneficial that a number of us have been in the industry a long time-people take our calls, and we've been successful in getting space on casino floors. But ultimately, the game has to perform."

Roemer says he has no doubt the games will perform. "We have a beautiful cabinet in our Player HD product, the games are working really well and the numbers we're getting are great," he says. "I believe we'll compete well against all of them, including IGT and Bally."

"We understand that for Multimedia to be successful in our Class III initiative, we have to be a company for which the majority of the games that get on casino floors perform above house average," says Sanfilippo. "We are a relatively small company compared to some of our peers, and as a result, we can move quickly on most opportunities. We can also have a more personal relationship with our customers. I spend a lot of time engaged with our customers, talking to the general manager or head of slots. Our team is also actively engaged with our customers. We pride ourselves on that. We're a company that can listen, focus and react quickly in the way we develop games and service customers."

Roemer sums it up succinctly: "This is the rebirth of a great small company."  

By Frank Bellis and John Ceresani   Tue, Sep 08, 2009

Employee retention is nice. Employee engagement is priceless.

In today's gaming industry-like other industries-there are organizations that are excited about their current situation and the opportunities before them in the immediate future. On the other hand, there is a significant number of companies that are in deep financial trouble and are rightfully anxious about the days, months and years to come. Currently, and often in the past in the gaming industry, this is correlated to the jurisdiction in which they are located, volume and breadth of regional competition, and the company's debt structure.

Ironically, the gaming properties that fit into the latter category are in jurisdictions that were once considered resilient to difficult recessionary times. Both Las Vegas and Atlantic City are yearning for the good old days. Most experts seem to believe that Atlantic City's re-visit to the good old days may be a long time coming, and perhaps gone forever in light of growing competitive pressures. It may not be time to jump on that wagon, just yet.

Changing Times
Change is clearly in the air, and leaders in both the Atlantic City and Las Vegas markets need to follow Abraham Lincoln's admonishment to "think anew and act anew" in order to have any hope for capitalizing on the opportunities that will arise when general economic conditions begin to improve.
As always, it will take enlightened and capable leadership to reinvent their organizations, and, most importantly, follow Lincoln's principle above-be innovative!

It is true there have been many innovations in the gaming industry over the past 15 years. However, most of these innovations have been the result of executive management working with external talent to build and/or renovate marvelous monuments and introduce enticing new gaming products, all driven by broad and deep access to capital. With access to capital gone, external partnerships to innovate will be fewer, thus requiring leadership to act anew as it relates to tapping the talent within, by building internal partnerships.

In this context, the next great differentiator for gaming organizations will be the people-the human resources. Candidly, based on the apparent erosion of this "partnership" over the past five years, executive leadership teams have a significant task before them to rebuild trust, the partnership and the commitment to excellence. The organizations that fully engage this untapped potential will have a significant competitive advantage.
    
Retaining the Best
Retention of talent in all industries has been a hot HR topic for over 10 years. High-level discussions have occured regarding employee retention, managing turnover, recognition, communication programs and the like. While it is certainly beneficial to talk about effective strategies to retain talent, we never really get to the heart of what it really means and how to ensure strategic talent retention is ingrained in the culture of the organization.

The reality is that in our fast-paced, quick answer/quick decision business world, we rarely take the time to think, define, clarify and agree on what we really mean. We make assumptions that are often inaccurate.

What does retention really mean? How do we define it within our company? Do we place enough emphasis on the selection process and job criteria (interpersonal competencies)? How is employee retention aligned to our organization's vision, mission, values and strategic business plan? Does the executive management team really believe it's a top priority and act accordingly? Do they truly value the people and believe that they can be a key competitive differentiator?

All these need to be answered in a thoughtful, honest and strategic way. This clarification process, if done inclusively, promotes individual and collective buy-in. Cherish the goal, while enjoying the process.

Retention should not be thought of as just reducing turnover or its cost, providing employment longevity and keeping employees-all of which are beneficial to organizations in most instances. The simple fact that we keep a person employed does not necessarily mean we are realizing the full benefit or have tapped their full potential. Nor does it mean they are engaged and productive. It simply means they are here for now and performing work.

Given the limited options most employees have in light of the current employment environment, merely retaining employees in and of itself may not be a great feat. We can't automatically conclude it means high employee morale. The better barometers are employee engagement and performance outcomes.

Therefore, retention of talent (to paraphrase Winston Churchill in another context) "is not the end; it's not even the beginning of the end, but perhaps the end of the beginning." The real leadership challenge for organizations today is not necessarily retaining employees but selecting, developing and keeping talented and engaged employees by maximizing their strengths and valuing their performance-thus making them the next key competitive differentiator.

People as Differentiators
Southwest Airlines provides the gaming industry a good example to follow. No one can argue that Southwest operates in a highly competitive, volatile and complex industry, like the gaming industry. It is an established service industry that has had perennial financial challenges that sometimes have led to bankruptcy. Even the airline companies that are operating today have rarely seen year-end profits over the past 10 years, except Southwest.

Their secret is no secret at all, as CEO Herb Kelleher readily champions. He is one of those executives who truly believe his people are a key differentiator. The Southwest leadership team has been able to tap the unique personalities and strengths of its team members in delivering delightful, fun and engaging service. More importantly, they've tapped their minds as well, in finding innovative ways to improve organization systems, processes, practices, safety and products. It's not rocket science, not even aviation expertise, just good, old-fashioned leadership that captures the wisdom and talent of its people.

An article published a year ago by Pharos Group in the Morowitz Quarterly titled "Leadership and The Five Principles of Organizational Energy" identified five basic leadership and employee engagement principles applied in the organizations Pharos led. It was the leadership experience at the Claridge Casino Hotel-an Atlantic City casino that from its opening in 1981 operated under the financial challenges that many casinos are experiencing today-that revealed the power of these principles.

How do organizations tap the energy, maximize the strengths, capture the wisdom and engage the organization's talent, resulting in outstanding performance thus making its people the key competitive differentiator? In answering this question guided by the Five Principles of Organizational Energy, the entire organization will realize a high level of employee retention, and more importantly, engagement.

Build Leadership and Organizational Trust
What does the word "trust" mean in organizational life? In Radical Trust by Joe Healy he believes trust is built around four competencies:

1 Character Trust: the way a leader's behaviors consistently reflect a common set of core values that are demonstrated in their performance execution and everyday communication. These behaviors confer to the people they lead a high degree of personal integrity, credibility and honesty. This trust reflects who you are.

2 Execution Trust: the leader's ability to get things done both individually and through influencing others. The leader's credibility to execute is rooted in his/her level of technical and interpersonal competencies. This trust reflects what you do.

3 Communication Trust: enables people to trust what leaders say and what they learn from them. Communication trust is built and maintained one conversation at a time. Therefore, think before you speak and always attempt to leave the person(s) energized. Additionally, walk the talk, be open, admit mistakes and actively listen. This trust is reflected in what you say.

4 Loyalty Trust: people believe that their leaders will look out for their interests and well-being. This trust has moved to the forefront in recent times as the basic needs of employees seem to be in jeopardy-wages, benefits and security. Interestingly, past employee surveys indicated these needs were not at the top of the list for retention and engagement. Based on the current economic conditions, they are a concern. This trust reflects how they feel.

Create a Vision and Plan
Why is this important? Generally, people need to believe that their efforts and commitment are contributing to something that matters and will make a difference. "Legacy leaders" have an uncanny ability to connect the organization's vision with the expectations of others, thus instilling ownership, common purpose and energy. The process of creating a vision should be as inclusive as possible, soliciting input from others and benefiting from their experiences.

The creation of a plan through collaboration identifies the roadmap for the collective journey. More specifically, the plan encompasses the strategies and tactics that will be executed to attain long- and short-term goals. Since the plan is a real working "document," it needs to begin with broad organizational goals, strategies and tactics and supplemented with division/department goals, strategies and tactics that are aligned to the "bigger picture." From these efforts, the leader connects the organization's strategic and execution activities, laying the foundation of a collaboration culture with focused energy toward achieving an aligned set of results-driven goals.

Empower the Team
To many, the single most frustrating, energy-sapping experience is not being able to utilize their talents and maximize their strengths because they are micro-managed. Not just front-line staff, but senior executives, including COOs.

If a leader does not trust the people to do the job they were hired to do, the leader can't possibly gain the respect of the team. This lack of mutual trust and respect erodes talent productivity, stifles innovation and fosters mediocrity. To tap the energy within, select and develop the right talent, lay out the game plan and turn over the play book to the person or team to execute. Then, get out of the way, until they need or ask for help.

Align Everything
It is essential to demonstrate consistency, reliability and credibility in all our actions. The organization's decision-making practices, policies, communication and behaviors must be aligned to the core values, vision, plan and goals of the organization. Remember, loyalty trust is earned through everyday actions, and a belief that the leader and the organization can be counted on.

We are what we repeatedly do. Excellence therefore, is not an act, but a habit.
 -Aristotle

Communicate Effectively
We explored this principle in communication trust. People only trust and believe people they feel they know. There is no such thing as over-communicating. While spontaneous communication has its place and value, a communication plan or strategy should be created to ensure the leader and organization can measure that communication is taking place, its effectiveness, its completeness and that it is accomplishing its intended results.

The types of communication incorporated in the plan should be limited only by the leader and organization's creativity, curiosity and capability. In today's diverse workplace, all methods, social media, forums, organizational communities and key communicators should be considered as valuable communication resources. Nothing fails to disengage and de-energize employees faster than insufficient or inadequate communication. The reverse is doubly true.

Making A Difference
When industry leaders truly consider the people factor a key differentiator and act accordingly, retention and engagement are a foregone conclusion. The cold, hard facts indicate that turnover and employee disengagement are costing companies billions of dollars a year. The U.S. Bureau of Labor Statistics estimates that replacing an employee costs employers from one-half to five times the employee's annual salary. Therefore, if an employer's annual turnover resulted in 200 employees leaving, and the average pay was $25,000, using a conservative one-half times employee salary formula, it would cost an employer approximately $2.5 million a year to replace employees.
 

According to a Gallup study on turnover (which included 44 organizations and 10,609 business units), nine of the 12 workplace elements of "great managing" consistently predict turnover across business units in all organizations.

These nine elements are: (1) having clear expectations; (2) having the materials and equipment to do the job right; (3) having the opportunity to do what you do best every day; (4) the belief that someone at work cares; (5) the belief that someone encourages your development; (6) a sense that your opinions count; (7) the mission or purpose of the company makes you feel your job is important; (8) a belief that your co-workers are committed to quality; and (9) having the opportunity to learn and grow at work. If these nine needs are met, turnover is usually very low and employee engagement is usually very high.

Additionally, based on a Gallup 2007 "Cost of Disengagement" survey, of all the U.S. workers 18 or older, about 24.7 million-or roughly 18 percent-are actively disengaged. Gallup estimates that the lower productivity of actively disengaged workers costs the U.S. economy about $382 billion annually.

The latter statistic illustrates the reality that employee retention is just the starting point for the CEOs, GMs and CHOs of gaming organizations that are looking to think and act anew. Las Vegas has demonstrated an ability to adapt to change and reinvent itself over the years, so it may be able to be innovative in tapping into the people factor.A Human Resources Journey to Success
by Frank Bellis and John Ceresani

If Atlantic City's aim is to redefine itself as a destination resort, it will need to deliver destination-like service, all the time. This will require a workforce that is talented, engaged, energized and valued. We know that these people exist in most gaming organizations in Atlantic City and throughout the country, because we have seen them with our own eyes. They just need a reason to believe! The leadership team that provides that may just be the Southwest Airlines of the gaming industry, and operate on a completely different competitive footing. 

By GGB Staff   Thu, Sep 10, 2009

The second Balkan Entertainment & Gaming Expo, or BEGE, is taking place in Sofia, Bulgaria October 5-7.

Running simultaneously with the show is the Eastern European Gaming Summit-EEGS-a must for anyone looking to become involved in this developing and rapidly changing market.

Major changes affecting this region in recent months-the shutdown of casino and slot machine markets in Russia and Ukraine, the effects of the economic downturn on regional tourism-have given this year's show added significance, both at the investment and legislative levels.

The first BEGE last year featured 78 companies from 18 countries. This year, as of the first week of August, half that number had signed on, including most of the major names from 2008.

Key exhibitors this year include Admiral, Alfastreet, Casino Technology, Eurocoin, Euro Games Technology,
Fazi, GLI, GPI, MEI, Sega, TCS John Huxley and WMS.

The EEGS seminars will feature presentations designed to provide attendees with a complete picture of the present and anticipated future conditions within the region. Scheduled speakers include:

• Annete Kok and Helmut Kafka, president and vice president, respectively, of EUROMAT;
  

• Signe Birne, chairman of Gaming Regulators European Forum;
  

• Michael Boettcher, president of Storm International;
  

• Tzvetan Konyarski, expert on social aspects of gaming for the Bulgarian industry trade group BTAMOGI; and
  

• Joseph Lema, assistant professor of hospitality management at Drexel University.

For more information on the expo and summit, go to www.balkangamingexpo.com.

By GGB Staff   Wed, Sep 09, 2009

The Isle of Capri Casinos board of directors last month elected James B. Perry as chairman of the board following the death of the company's founder and former chairman, Bernard Goldstein. In addition, the board nominated Richard A. Goldstein to stand for election to the board at the upcoming annual shareholders
meeting in early October.

Considered one of the most respected executives in the gaming industry, Perry joined Isle of Capri Casinos as vice chairman of the board in 2007; he was named chief executive officer and executive vice chairman in  March 2008. Prior to joining Isle of Capri Casinos, Perry held leadership roles with Trump Entertainment Resorts and Argosy Gaming. Under his guidance, Argosy was transformed from a struggling operator of regional riverboat casinos to a company with one of the strongest balance sheets in gaming. The company was sold to Penn National Gaming under his leadership.

Goldstein, son of the late Bernard Goldstein, serves as president of Alter Energy, LLC, and serves on the board of directors, and is executive vice president, of Alter Company. He has been an officer/director of several affiliated river transportation companies engaged in stevedoring and equipment leasing since 1983.

By GGB Staff   Wed, Sep 09, 2009

The Monte Carlo resort on the Las Vegas Strip recently opened a new boutique hotel called Hotel32 on its top floor, which was destroyed by a fire in January 2008. Rather than simply restore the floor's original rooms, Monte Carlo executives decided to completely redesign the space, upgrading the rooms from standard Strip hotel fare to luxury spaces. "After the fire, we had an opportunity to take a step back and re-evaluate what
we had," Monte Carlo President Anton Nikodemus told the Las Vegas Review-Journal. "Our goal was to create a product that was luxurious, engaging and inviting, but also unpretentious."

By GGB Staff   Wed, Sep 09, 2009

Don Marrandino last month was named president of Harrah's Eastern Division, which includes the company's
all-important Atlantic City casinos and its Chester racino, following the announcement of the retirement of Carlos Tolosa, who had been with the company since its days as the Holiday Inns.

Marrandino returns to his roots. He left Harrah's Atlantic City in 1989 to join the Rio in Las Vegas, where he was responsible for setting up the nightclub scene in that seminal property. He moved on to Station Casinos, the Hard Rock Hotel, Wynn Las Vegas, and most recently the Flamingo, Harrah's Las Vegas, O'Shea's, the
Imperial Palace and Bills Gambling Hall.

The shakeup brings Rick Mazer, a longtime Harrah's executive, to Las Vegas to take Marrandino's position. Dan Nita, previously in charge of Harrah's AC properties, will assume Mazer's old job as general manager of Harrah's
Hammond in northern Indiana, and will presumably also oversee the company's Midwest riverboats
in Indiana, Illinois, Missouri and Iowa.

Tolosa will stay on until the end of the year, assisting Marrandino with the transition and working with Harrah's Chairman Gary Loveman on "strategic initiatives."

By GGB Staff   Wed, Sep 09, 2009

Melco Crown last month raised US$200 million in a "follow-on" offering that was designed to correct a "quirk" in the company's balance sheet that would have become a problem in 2010. While there aren't many problem covenants for Melco Crown in the first year following the opening of its City of Dreams in Macau, this issue could have been serious as covenants ramp up next year. But the sale of these shares should mitigate that.

By Frank Legato   Wed, Sep 09, 2009

Manufacturer: Aristocrat Technologies
Platform: GEN7
Format: Five-reel, multi-game, multi-line video slot
Denomination: .05, .10, .25 (multi-denomination)
Max Bet: 50, 100, 200
Top Award: Progressive; $200 reset
Hit Frequency: Approximately 50%

This is one of Aristocrat’s new multi-game units, with two games loaded into the sleek Viridian cabinet. It also is available in the manufacturer’s new Crown Slant cabinet.

The two games, “Golden Shield” and “Jaguar King,” are in Aristocrat’s Double Standalone Progressive series. Each game is available in five-line, 10-line or 25-line configuration. Both game programs are very volatile. Both have free-spin bonuses—Golden Shield awards 20 free spins; Jaguar King, 15—with similar base game features. The frequency of the free-spin feature is higher on the Jaguar King game.

The progressive jackpot feature is the same for both games. There are two progressive prizes, a “Minor” that resets at $20, and a “Major” that resets at $200. According to the manufacturer, the average Minor jackpot is $120, and the average Major jackpot is $1,200.

Three or more gold “Ace” symbols on an active payline trigger one of the progressives. Three Ace symbols return a fixed prize of $20. Four symbols win the Minor jackpot; five symbols win the Major.

In addition to a choice of games, Jackpot Royale is a multi-denomination machine. Each of the two games is offered in nickel, dime and 25-cent denominations—itself a unique feature, since these games are both very volatile.

One of the strongest features of this slot is the cabinet—Aristocrat’s Viridian cabinet makes for an elegant presentation, with two LCD monitors comprising the entire face of the game, which makes it easy for the operator to switch out games when more are available from the manufacturer. Viridian also will be Aristocrat’s cabinet of the future for server-based gaming.

By Caitlin McGarry   Wed, Sep 09, 2009

Product: In-Running Sports Product on Mobile Devices
Manufacturer: Cantor Gaming

In 2004, Cantor Fitzgerald launched its gaming business, Cantor Gaming, with a technology platform based on its system for financial transactions. Cantor Fitzgerald has been at the forefront of financial and technological innovation since Bernie Cantor, the firm's founder, pioneered screen brokerage in 1972. This technology evolved into the eSpeed electronic trading platform for trading U.S. government bonds, and transformed the way these securities are traded.

Since its launch, Cantor Gaming has developed a complete end-to-end mobile gaming solution, including a wireless, server-based gaming system, eDeck, the first mobile gaming device approved for use in Nevada. Having gained regulatory approval, Cantor Gaming was chosen as the exclusive provider of mobile gaming technology services to Las Vegas Sands Corp. at its Venetian and Palazzo properties, as well as the M Resort Spa & Casino.

Cantor Gaming was also the first company to launch in-running sports wagering in the state of Nevada with its introduction at the new M Resort Spa & Casino's race and sports book. In-running wagering allows casino guests to bet on a variety of outcomes in live sporting events throughout the event. This new product opened for action with the 2009 NCAA March Madness basketball tournament and continued throughout the NBA playoffs, horse racing's Triple Crown and PGA Golf's major tournaments. In-running wagering is currently offered for select Major League Baseball games.

"We are obviously delighted to have reached this stage in the evolution of mobile gaming within the state of Nevada," says Cantor Gaming President and CEO Lee Amaitis. "In-running is truly the future of sports betting. Already customers have been hugely receptive to in-running and are thrilled with this revolution in sports wagering technology."

Cantor's Chief Technology Officer Sunny Tara says in-running sports wagering will be available on mobile devices similar to the iPhone when the upcoming football season begins.

"Our patrons will have the opportunity to place wagers on the money line, point spread, totals for both the entire game and the first half, as well as other proposition bets such as whether the next play yields 20 yards or a drive has another first down."

The product will initially be offered at M Resort, the Venetian and the Palazzo.

For more information on Cantor Gaming's in-running sports product and eDeck 1.5 mobile gaming product, e-mail Cantor Gaming at info@cantorgaming.com.

By GGB Staff   Tue, Sep 08, 2009

The nationwide ban on casino gaming that went into force in Ukraine on June 25 has not rid the country of illegal gaming operators.

According to the Kyiv Post, the parliamentarian who wrote the end-to-gaming law said 10 percent of the casinos that had been operating illegally before the ban continue to do so.

The lawmaker, Valeriy Pysarenko, a member of casino opponent Prime Minister Yulia Tymoshenko's voting bloc, estimated that prior to the ban, 70 percent of all gaming operations in Ukraine were in violation of the law.

The Post reports that one of the better casinos in the middle of Kiev continues to operate, with a secret entrance for high rollers.

Oleksiy Kosarev, head of the Committee against Organized Crime and Corruption, said at a press conference, "In the center of Kiev, under the noses of the president and parliament, the law is not being observed. If it's not being observed here, then what about in the provinces?"

A statement issued by the police department of the state tax administration said that 500 mobile groups totaling 1,500 officers were monitoring compliance with the law. By mid July, 155 cases of illegal gambling had been registered and equipment seized worth UAH 27.2 million-$3.6 million.

Pysarenko, however, does not believe the police are doing enough.

"We don't see the strict measures from the tax inspectorate and the Interior Ministry that could lead to the handing out and payment of fines," said Pysarenko. "The police and tax inspectors have proved unwilling to fight."

Pysarenko reportedly sent a letter to Interior Minister Yuriy Lutsenko asking for a procedure to allow police to close down the illegal operations. He also demanded the sacking of regional police chiefs if casinos were found to be operating in their jurisdictions.

Among the estimated 30 percent of operations that did follow the law but which have now ceased doing business are those of Estonia-based Olympic Entertainment Group. OEG has begun liquidating its local subsidiaries and plans to demand compensation from the Ukrainian government, based on a trade agreement between the two countries.

In a statement, OEG said, "We are also considering turning to the European Commission together with other casino companies operating in Ukraine."

By GGB Staff   Tue, Sep 08, 2009

Two tribes last month reached the end of long roads and finally debuted their new casinos.

FireKeepers Casino in Battle Creek, Michigan, owned by the Huron Band, opened its doors on August 3.

The opening follows 15 months of construction by Full House Resorts. The $300 million casino has 107,000 square feet of gaming, including 2,680 slot machines, 78 gaming tables, a poker room and a bingo hall, plus five restaurants, among them a 500-seat buffet and a fine-dining restaurant.

The casino has already signed up more than 60,000 members to its customer rewards program, called Red Hot Rewards Club.

Full House Resorts, which is managing the casino for the tribe, is being paid a fee of 26 percent of profits over the next seven years. Former Trump executive Bruce McKee is the general manager of FireKeepers.

In Oklahoma, the ribbon-cutting for the $155 million transition from Cherokee Casino to the Hard Rock Hotel & Casino Tulsa was held last month, attended by hundreds of politicians and media VIPs.

The two-year expansion of the casino, which is actually located in Catoosa, includes five restaurants such as McGill 19 and Toby Keith's I Love This Bar and Grill, five nightclubs, an expanded gaming floor, a 350-room hotel, convention space and the 18-hole Cherokee Hills Golf Club, along with the signature rock music memorabilia-this collection valued at $2 million-that is the Hard Rock's specialty.

Keith, appearing at the grand opening, sang the song that inspired the restaurant, "I Love This Bar."

But this Hard Rock, the seventh in the chain in the world, and the only one in the Midwest, will have a special affinity for Oklahoma musicians.

"We will dedicate a portion of the memorabilia to Oklahoma Country and Western and rock and roll stars, giving it a unique flavor and making it a Hard Rock like no other," said the casino's CEO Dave Stewart.

A 2,500-seat entertainment center is scheduled for completion this time next year.

By GGB Staff   Tue, Sep 08, 2009

The city council of Montevideo intends to support the awarding of the Hotel Carrasco casino license to the Codere group, even after the national audit court issued a non-binding statement saying irregularities had marred the decision process. So said Montevideo Pro Secretary Jorge Rodriguez to news source El Pais.

The victorious Codere bid was examined by the audit court recently with regard to financial viability and the hotel portion of the project.

According to a report from the online edition of Soloazar, the court was of the opinion that Codere had failed to demonstrate sufficient financial underpinning for the project and had not identified the source of funding, which was seen as a breach of Article 16 of the tender rules.

The court also said that, with regard to the hotel portion of the bid, the winning Codere proposal did not show a firm commitment or partnership with a hotel operator. The court noted that, of four competing proposals, only the bid from Argentur Inversiones Turisticas S.A. did not rely on third parties to operate the hotel and casino.

Rodriguez for his part said that Codere could face a penalty of up to $6 million if the company failed to meet its obligations as described in the bid. The hotel partner in the Codere bid was the 150-property Sofitel, which is the upscale brand of the 4,000-hotel Accor group, of France.

The individual in charge of the Codere-Sofitel project, Guillermo Arcani, told El Pais that the report of the audit court "plays down" many aspects of a comptroller's report that had been released the previous week.

Arcani said that the consortium Codere-Sofitel had already answered the negative points cited in the audit court report.

The announcement did nothing to deter the runner-up in the license competition, Hyatt, from seeking further action.

Marcel Graniero, representing Dongara Investments Inc. (Hyatt), said the company will appeal the awarding of the concession to Codere and will look into initiating a suit against the Montevideo City Council.

By GGB Staff   Tue, Sep 08, 2009

Newly introduced legislation in the U.S. calls for a federally regulated system to provide residents with online poker and other games of skill.

The bill, introduced by Senator Robert Menendez of New Jersey, is, according to a press release, designed to generate revenue while protecting families by excluding predatory online gaming sites that target minors.

Menendez's legislation calls for potential online operators to undergo a thorough review by the Treasury Department. The review will look at business records, the financial condition of the applicant, corporate structure and other background checks. If approved, licenses would be good for five years, with renewal subject to the same requirements as first obtaining a license.

Licensed sites would pay a 10 percent tax on deposits into playing accounts. Those proceeds would be split evenly between the federal government and the state where the player is located.
 

"Pulling internet poker out of the shadows and into the light of the law, we have the opportunity to help our economy while protecting our families," Menendez said in the press release. "By bringing these games of skill into the mainstream, we can generate billions in revenue for businesses and the Treasury during these tough times."

The bill, which is being called the Internet Poker and Games of Skill Regulation, Protection and Enforcement Act, is similar to legislation introduced in the House by Rep. Barney Frank, called the Internet Gambling Regulation, Consumer Protection and Enforcement Act.

Menendez's bill, however, also addresses a parimutuel concern. His legislation scraps the 25 percent federal withholding tax on parimutuel wins in excess of $5,000, and increases the amount of reportable winnings from $600 to $1,200.

"This bill was drafted with input from numerous stakeholder groups, including the National Thoroughbred Racing Association, which will help bolster its chances for passage. The bill is limited to online poker, carries strong consumer protections, respects states' rights, and ensures that domestic U.S. industries-including the horse racing industry-are allowed to participate fully and with equal opportunity in future internet gaming

The NTRA prefers the Menendez bill to Frank's legislation because it addresses horse racing issues.

By GGB Staff   Tue, Sep 08, 2009

The government of the Macau Special Administrative Region has set regulations that would control the portion of the gambling money deposited by their clients in the Macau casinos. Currently, commissions can be set by the individual casinos at their own risk. But several casino companies have reached agreements capping the payments at 1.25 percent applied to the "rolling chip" volume, which accounts for 42 percent of the casino win, the same level the government is mandating. The new rules will take effect on September 9.

Prior to the liberalization of gaming in Macau in 2002, the industry controlled by Stanley Ho had paid just 0.8 percent. That rate rose to 1.35 percent as competition got super-heated.

The implementation of the commission cap is designed to level the playing field so that all six casino operators in the SAR can concentrate on their products, not on the payments to the VIPs. The SAR regulations set fines and penalties of between 100,000 patacas (US$12,658) and 500,000 patacas (U$63,291) to any casino violating the policies.

The commission cap is being implemented during a time when the six operators have agreed to join forces in a gaming association, Chamber of Macao Casino Gaming Concessionaires and Sub-concessionaires, and have agreed to work together for the good of the industry.

While this would seem to be good news for the operators, some observers believe competition will only be masked. Some complain that the penalties for violating the cap aren't strong enough and that there are other ways to get around a cap that haven't been addressed. Penalties would also be applied to the licensed junket operators, who could have their license suspended for up to six months or even revoked.

By GGB Staff   Tue, Sep 08, 2009

Ohio Governor Ted Strickland issued an executive order in July that will place 2,500 video lottery terminals in each of the state's seven racetracks. Ohio joins the ranks of Pennsylvania, West Virginia, Rhode Island, Delaware and New York, which all have lottery racinos.

While Strickland rejected a proposal to allow four full-scale casinos in the state's major cities, a petition drive gathered enough signatures to be certified for a referendum in November. The Ohio Jobs and Growth Plan would authorize four $250 million regional casinos in the state's four largest cities, Cincinnati, Columbus, Cleveland and Toledo. The effort is being financed by Penn National Gaming and Dan Gilbert, the majority owner of the Cleveland Cavaliers. The state's Fraternal Order of Police has come out in support of the measure because some of the tax revenue is dedicated to law enforcement.

While the casinos will have to wait for voter approval, the slots could be up and running very quickly.

The legislature approved 17,500 racino terminals and also passed a bill recognizing that Strickland has the authority to put slots in racetracks under the existing lottery amendment that was added to the Ohio constitution in 1973.

Strickland has said he expects the new revenues will add $933 million to the $55.5 billion two-year state budget over the next two years. Proceeds will be earmarked for education.

The casino initiative would, proponents claim, pump $200 million in licensing fees the first year plus $651 million a year in tax revenues that would go to local government and schools.          

However, it is also possible that the casinos could hurt the revenues from the racinos. MTR Gaming Group, Inc., owner of Scioto Downs, revealed it is prepared to spend up to $8 million to defeat the initiative in order to prevent its investment from being undermined by the regional casinos.

By GGB Staff   Wed, Sep 09, 2009

Slot and system manufacturer Konami Gaming announced that it has been awarded the contract to provide a casino management system to the Osage Nation of Oklahoma.

The company's Konami Casino Management System, or KCMS, will link a total of 3,200 slot machines across seven Osage Nation casinos in Oklahoma to a real-time, single-card player tracking and accounting network. Installation of the system in the first property is slated for completion in early September, with all properties scheduled to go live on KCMS by early December.

"We are very pleased to be entering into this partnership with the Osage Nation," said Jay Bertsch, system sales director for Konami. "We are thrilled with our success in the Oklahoma market and thankful for the wonderful customers we are able to partner with in this territory. By spring of 2010, there will be 17 total KCMS installations in Oklahoma."

The Osage Nation also will be implementing Konami's Patron 360 software suite across all seven properties. Patron 360 is a suite of marketing tools designed to increase the overall patron experience and provide the casino a configurable set of key performance indicators designed specifically to assess patron worth across all gaming and non-gaming amenities.

By GGB Staff   Wed, Sep 09, 2009

Voters in Penghu County in Taiwan, offshore islands near mainland China, will vote on September 26 on whether to legalize gaming. The vote is the second step to implementing casinos on the islands after the legislature approved gaming for the county earlier this year.

By Frank Legato   Wed, Sep 09, 2009

Manufacturer: AC Coin & Slot
Platform: Mega Bonus Slots; IGT S2000
Format: Five-reel, 25-line stepper slot
Denomination: .01, .02
Max Bet: 25-500 (configurable)
Top Award: 4,500 times line bet
Hit Frequency: Approximately 50%
Theoretical Hold: 10%-12%

This is the latest incarnation of AC Coin's popular "Big Game Show" series of slots that contain bonus rounds set up like a game show board. The base game is the five-reel, 25-line penny stepper version of IGT's "Triple Stars," which features multiplying wild symbols and multiple "7" combinations in the pay table.

The bonus round plays out on a 21-inch LCD video screen in the top box. The bonus board displays a giant reel containing seven award values and a devil character. The big reel is surrounded by 14 squares displaying the same values and devil character.

When the bonus is triggered, the machine's sound system blares the 1970s KC & the Sunshine Band hit "That's The Way (I Like It)" as a number of spins appears on a meter. The large reel spins as the squares flash bonus values at random. When the reel stops, if the value matches the game-card amount, it is a "spot hit," and that value is added to an accumulating bonus. If the devils match, the award is determined at random. Devil awards range from 60 credits to 1,000 credits.

Additional credit awards are won by completing the displayed amounts in a row on the board, or completing the entire game card. If spins on the reel remain when the game card is full, an additional 50 credits are awarded.

The Big Game Show slots have generally received heavy play because of the frequency of the bonus rounds. They occur every 45 spins on average, with an average bonus pay of 362 credits.

By Caitlin McGarry   Wed, Sep 09, 2009

Product: Podium Cabinet
Manufacturer: Konami Gaming

Initially introduced at the 2008 Global Gaming Expo, Konami's new Podium cabinet was developed as a joint effort by Konami Gaming, Konami Digital Entertainment and Stuart Karten Design, a leading industrial design firm.

The goal was to create a cabinet that enhanced game entertainment and attraction while providing additional comfort to the player for increased time on device. The Podium has a depth of 15 inches, which makes it highly competitive in the slim line market and also makes it an attractive option to casino operators who have space restrictions on their gaming floors.

The cabinet features two 22-inch touch-screen LCD displays. These larger displays not only provide players with a larger viewing area ergonomically placed at eye level, but the dual displays also give the opportunity for enhanced graphical features because they are in close proximity.

One of the unique aspects of the Podium is the lightening effects that surround the machine. The Podium's lighting has two horizontal lighting features between the two displays and player-tracking bracket. This lighting undergoes a variety of color changes, including purple, red, yellow, green, light blue and dark blue, and spans all three sides to attract players from all directions.

Podium has two surround-sound speakers and a subwoofer to create a powerful sound package, and enhances the players' game experience by celebrating big wins and bonus features. Finally, Podium's ergonomic button panel was designed so that players can rest their hands on the button panel to hit the spin button while playing.

This new cabinet is compatible with all of Konami Gaming's K2V video titles, allowing operators to choose from a large library of games.

Konami Gaming recently launched eight Podium cabinets at the Barona Resort & Casino in San Diego, California. These units are in Barona's "Sneak Preview" section, which allows customers to try out games new to the California market.

For more information about Podium or any other Konami gaming products, visit www.konamigaming.com.

By GGB Staff   Tue, Sep 08, 2009

Some California card clubs and gaming tribes, who have for a decade been at sword's point, have allied to quietly but insistently lobby Sacramento lawmakers to make internet
poker legal.

The leading Indian tribe in this effort is the Morongo Band of Mission Indians, operator of one of the most successful tribal casinos in Southern California, Morongo Casino and Spa. Spearheading the effort for the card clubs is the Commerce Casino, a Los Angeles club. The proposal is called the Morongo Initiative -Tribal Intrastate Poker Consortium.

During the August legislative recess, they were bending the ears of legislators, who, swimming in a sea of red ink, are receptive to proposals that might raise revenues. However, with only four weeks left in the session,
legislators may not have enough time to give the issue enough study.  

Experts estimate that internet poker generates $4 billion a year in illegal bets from U.S. residents. Morongo is putting out statistics that suggest that a California consortium could reap $450 million a year, of which the state could tax 10 percent. Morongo has pledged to put up $5 million to help finance the network that would be established to tap this source.

They are also recruiting from among the 100 gaming tribes and 60 card clubs in the state. Last month, Morongo hosted a presentation for a dozen of them at the Hyatt Regency Sacramento, where they heard the proposal for a consortium of card clubs and tribes to run the internet poker games. Some tribes that attended have been unable to get state-tribal gaming compacts to build their own casinos.

So far, no lawmaker has volunteered to carry the bill. Senate President Pro Tem Darrell Steinberg said last month that there isn't enough time in the current session to address the bill.

Two tribes that have shown some interest are the Agua Caliente Band of Cahuilla Indians and the Pechanga Band of Luiseño Indians.

Other tribes may require convincing, since they believe that allowing card clubs a piece of the action would violate the California tribal gaming compacts that guarantee tribes exclusive rights to some forms of gambling. The tribes, including members of the California Tribal Business Alliance, also worry that it would violate current Bureau of Indian Affairs regulations that make it difficult for tribes to go far from their reservations to offer gaming.

Proponents counter that it is not illegal for Indian tribes to participate in existing casinos outside of their states, and that poker is not one of the compacted gaming activities for which tribes are granted exclusive rights.

By GGB Staff   Tue, Sep 08, 2009

A former president of Panama is under investigation for allegedly favoring a few select gaming companies when the nation's casinos were being privatized in the late 1990s.

Attorney General Ana Matilde Gomez ordered the investigation of former President Ernesto Perez Balladares following a recent series of articles on the subject, published by La Prensa.

The La Prensa articles claim that Balladares gave no-bid, no-fee gaming licenses to three companies-Lucky Games S.A., Comput Bingo S.A. and Competiciones Deportivas S.A.-whereas competitors paid millions to be permitted to operate.

The articles also detail a number of business connections between family members of Balladares and the companies, including a brother who is a shareholder in Comput Bingo and Competiciones Deportivas and a son-in-law who is on the board of Lucky Games.

In addition, a limited company that is connected to Balladares is said to have received frequent deposits from Carlos Gonzalez Carrasquilla, the alleged owner of Lucky Games prior to 2007.

CIRSA Panama currently owns 71 percent of Lucky Games and Gaming & Services of Panama, which merged in 2007.

Helios Navarro, general manager of CIRSA Panama, says Balladares has done nothing wrong.

Balladares for his part has addressed the matter in an e-mail sent to friends, and which La Prensa says eventually found its way to "a website."

In the e-mail, Balladares admits that son-in-law Enrique Pretelt and friend and former housing minister Roosevelt Thayer received a license to operate slot machines, but denies any wrongdoing.

By GGB Staff   Tue, Sep 08, 2009

A 10-year struggle by the Match-E-Be-Nash-She-Wish Band of Pottawatomi Indians to bring a casino to some 147 acres near Grand Rapids, Michigan, has ended with the Department of Indian Affairs declaring the land a tribal reservation.

The tribe, commonly called the Gun Lake Tribe, has plans to build a $200 million casino on the reservation. The casino will be managed by Las Vegas-based Station Casinos.

"I am pleased to issue this proclamation, and to exercise the authority delegated to me by the secretary of Interior to the Match-e-be-nash-she-wish Band of Pottwatomi Indians," said Assistant Interior Secretary for Indian Affairs Larry EchoHawk. "The land is for the exclusive use of Indians on the reservation who are entitled to reside at the reservation by enrollment or tribal membership. These properties will provide opportunities for economic development, self-determination and self-sufficiency."

The signing of the proclamation and the taking of the land into trust on behalf of the tribe seems to signal that EchoHawk may be amenable to off-reservation casinos.

EchoHawk was Idaho attorney general when the state passed an amendment allowing a lottery but prohibiting other forms of gambling. Federal officials said the loose wording of the amendment would have allowed for tribal casinos. Rather than negotiate with the tribes, EchoHawk suggested a special legislative session to fix the language of the amendment.

By GGB Staff   Tue, Sep 08, 2009

The legislation that will allow the construction of the ambitious Gran Scala project in Aragon, Spain, is now in force.

The Law of Leisure Centers of High Capacity was published in the Official Gazette of Aragon July 17. The law applies to any tourism, cultural or sports project that develops an area of at least 1,000 hectares, creates at least 3,000 jobs and builds 8,000 or more hotel rooms.

The law, known as the Gran Scala Act, prohibits permanent residential development but allows for the construction of quarters for project employees and management.

A consortium of local government and the towns that will be involved with the Gran Scala project will now be formed. The bylaws of the consortium will also be published in the Official Gazette of Aragon.

By GGB Staff   Tue, Sep 08, 2009

Shares of Las Vegas Sands soared last month when the company announced it had received an amendment to its $3.3 billion Macau credit facility that will give it more flexibility in responding to challenges and opportunities in Asia.

"This action represents an important step forward in our plan to maintain and improve liquidity," said Chairman and CEO Sheldon Adelson. "The amendment significantly increases our financial flexibility and permits us to pursue a potential listing of a minority interest in our Macau operations on an Asian stock exchange."

The company will pay a higher interest rate, but the repayment schedule is lengthened and it will have the opportunity to either sell individual operations or issue the long-expected IPO on its Macau properties. If the company successfully completes a sale and prepays $500 million of outstanding loans, the interest rate will drop. The amendment also includes the ability to issue senior secured or unsecured notes in Macau.

The deal includes six quarters of relief from loan covenants and allows it to sell a minority interest in its Macau operations.

The agreement may signal a shift on the general negative view of Macau in the last year. When Wynn Resorts and MGM Mirage suggested that they too could issue IPOs on their Macau operations, the market responded favorably.

By GGB Staff   Tue, Sep 08, 2009

The corporate bondholders of Trump Entertainment Resorts will not let Donald Trump's planned company buyout go unchallenged.

As expected, the investors-who stand to lose $1.25 billion if Trump's plan is approved in bankruptcy court-filed motions in August to stop Trump in his tracks.

They called his offer of $100 million to take three publicly traded Atlantic City casinos private "a brazen insider deal" with only two possible beneficiaries: Trump himself and his financial partner, Andy Beal.

Under the plan, Trump and Dallas-based Beal Bank of Nevada would co-own the casinos. The bank would postpone the due date of a $486 million loan for eight more years, from 2012 to 2020, taking the pressure off a company awash in debt. But under the plan, bondholders as well as shareholders would walk away empty-handed.

Bondholders have fired back with a proposed deal of their own, offering to invest $175 million in Trump Taj Mahal, Trump Plaza and Trump Marina. They said their plan includes "a significant amount of cash" for Beal Bank, as well as money to the noteholders and unsecured creditors.

The company that bears Trump's name, meanwhile, has thrown its support behind the real estate mogul. CEO Mark Juliano said Trump Entertainment and its advisers "met with both groups on a number of occasions, and our decision was based on what we really felt was best for the company."

For bondholders to stop Trump, they must persuade the court to terminate the company's exclusive right to propose and seek approval of a reorganization plan.

If approved, the bondholders' plan also would complete the sale of Trump Marina-the weakest performer among the three Atlantic City casino properties-for the cut-rate price of $75 million to Coastal Marina LLC, which plans
to re-brand the property as Margaritaville.

By GGB Staff   Wed, Sep 09, 2009

MGM Mirage announced the creation of a new executive position to oversee 11 core branded properties in Las Vegas.

Jim Murren, chairman and CEO of MGM Mirage, told company employees via email that the board appointed Corey Sanders to the new position of chief operating officer for the 11 properties, which include the Monte Carlo and Luxor.

Sanders was executive vice president of operations and a former chief financial officer for Mirage Resorts before it was bought by MGM for $6.4 billion in 2000.

By GGB Staff   Wed, Sep 09, 2009

The Betting Show, previously a stand-alone event focused on the bookmaking industries of the U.K., Ireland and Europe, will become part of the annual International Gaming Expo—IGE—in London in January.

Created in 2003 and staged at the NEC in Birmingham, U.K., each October, the Betting Show had been scheduled by owner Clarion Gaming to run at the usual place and time.

However, in May, Emma Green, show director for all Clarion Gaming events, announced in a statement that “some key exhibitors” were withdrawing from the show.

Now, the bookmaking event will join the IGE, which already features exhibitors from the casino, online gaming and coin-op amusement industries. The IGE is being held at the Earls Court Exhibition Centre, January 26-28. Over 300 exhibitors are expected to attract some 20,000 visitors from more than 100 nations.

By GGB Staff   Tue, Sep 08, 2009

Efforts by Station Casinos to secure support of unsecured creditors for a prepackaged bankruptcy stalled last month, forcing the company to file for Chapter 11 bankruptcy protection.

The motion was filed in U.S. Bankruptcy Court in Reno. It covers Station Casinos Inc. and 17 of its non-casino affiliates, land holdings in Reno and other non-gaming assets. The company's 18 casinos will continue to operate, according to the filing.

Station COO Kevin Kelley added that vendors and employees, as well as customers who have accumulated reward points, will not be affected.

"It is business as usual at our 18 gaming properties," he told the Las Vegas Review-Journal. "Team members, guests and vendors are going to be treated just as they always have been for the last 33 years."

The filing lists $5.7 billion in assets against $6.5 billion in debt. The majority of that debt comes from the move in 2007 to take the company private with Colony Capital and the Fertitta family.

Rival locals operator Boyd Gaming immediately said it would continue to pursue the purchase of some or all of Station Casinos' properties. 

By GGB Staff   Tue, Sep 08, 2009

Representatives of the Seminole Tribe of Florida met in Tallahassee last month to try to hammer out a gaming compact
before the legislature-mandated August 31 deadline.

Lead negotiator George Lemieux, former chief of staff for Governor Charlie Crist, told the South Florida Sun Sentinel that the two sides are "narrowing down the issues" in hopes of making a deal on time. But the revised compact will not strictly conform to terms endorsed by the legislature back in May. That means lawmakers might have to convene a special session to decide whether to accept the new terms.

According to the Sun Sentinel, one change will be to the so-called "exclusivity" part of the compact, which ensures that the Seminoles are the only ones who can offer blackjack and slots outside South Florida. The legislature would require the tribe to make payments to the state even if competitors get similar games, as long as the tribe's revenue didn't experience a major drop. Not surprisingly, that idea held little allure for the tribe.

"Exclusivity is certainly one of the issues we're talking about," Lemiuex
told the newspaper. "The federal law requires it."

Tribal lawyer Barry Richard has said that without exclusivity, there is no reason for the tribe to cooperate. In that case, the Seminoles could conceivably run their operations without paying a dime to the state. As it stands, the legislature has asked for $150 million a year from the tribe, 50 percent more than they agreed to in an aborted 2007 deal with Crist. The original compact was later nullified by the state Supreme Court, which ruled that the pro-gaming governor had no authority to make the deal without legislative approval.

The legislature's proposal also requires the tribe to shut down blackjack tables at its Naples casino. The Seminoles would get to keep blackjack at their casinos in Broward County and Tampa.

By GGB Staff   Tue, Sep 08, 2009

Members of the Hull city council cabinet have agreed on basic guidelines to present potential casino operators bidding for the proposed large casino license there.

Casino proposals must include conference facilities, restaurants, bars and other such amenities, and create a minimum of 125 jobs in the retail, hotel and food and beverage sectors.

Proposals must also fit well with local redevelopment plans for the city center that are already in existence, and set a period of time within which the project will be completed.

Council member John Robinson, in charge of image and culture, wants to be sure that casino development will not harm the public.

"We need to make sure that any proposed development would be appropriately located away from schools and youth centers," said Robinson. "In addition, the appropriate safeguards will be put in place through the licensing and planning process to make sure that the development won't compromise the support that is given to vulnerable groups."

The council is expected to request proposals from casino operators in December, at the earliest.

By GGB Staff   Tue, Sep 08, 2009

The head of the Argentine Football Association has said the answer to financial problems hitting the sports clubs would be to allow the AFA to operate betting on individual games, as in the
U.K. style of sports betting.

"That would be a total solution for us," Julio Grondona, president of the AFA, told local newspaper Diario Olé.

At present, the only betting allowed that involves professional soccer is the state lottery's Prode game, which uses a number of match results to arrive at a winning combination. The AFA receives less than 11 percent of the money wagered. Football is a national passion in Argentina and legal betting is expected to be a huge revenue generator.

By GGB Staff   Tue, Sep 08, 2009

The competition in Singapore heated up last month as one of two casinos changed horses in the homestretch, and the other seems to have entered the homestretch in the lead.

As the opening of Marina Bay Sands in Singapore approaches, Las Vegas Sands last week jettisoned its two top executives overseeing the project and brought in replacements with no gaming experience.

Leaving are President Nigel Roberts and Vice President Tony Cousens. Both have spent less than a year with MBS-Roberts arriving last January and Cousens in April. Their departures may be related to March's upheaval, which saw LVS President and COO Bill Weidner and Executive Vice President Brad Stone leave the company after conflicts with Chairman Sheldon Adelson.

Replacing Roberts and Cousens are two hotel executives with little gaming experience. Thomas Arasi, formerly chief executive of hotel operator Lodigian Inc., is the new president and chief executive officer. Ronen Nissenbaum will be the new executive vice president for operations. He was the regional vice president of operations in North America for the Intercontinental Hotels Group. Arasi has already started and Nissenbaum was expected to start by the end of August.

MBS is scheduled to open in early 2010.

On the other side of town, Resorts World may be ready to open by the end of the year, giving the property a big advantage over Marina Bay Sands. The project being developed by Genting of Malaysia has been accelerating the pace of construction, giving company executives confidence they could open the doors late this year, rather than early next year, reported CIMB Investment Bank.

Resorts World carries a price tag of US$4.5 billion, while MBS is clocking in at $5.4 billion.

By GGB Staff   Wed, Sep 09, 2009

Gaming Partners International Corporation announced that President and Chief Executive Officer Gerard P. Charlier will retire effective September 12. He will be replaced by Gregory Gronau, the former CEO of Class II supplier Cadillac Jack who was hired last October as executive vice president and chief operating officer and
was brought in specifically to be groomed as Charlier's successor after the CEO's planned retirement.

Charlier was the first CEO of GPI, named to head the combined company after it was formed through the combination of former table game suppliers Bourgogne et Grasset (B&G), Paulson and the Bud Jones Company. He was president and CEO of founding company B&G, and had served on that company's board since 1985.

"GPI has been my life's work for so long, and while I will miss the day-to-day activity, I am very confident in handing the reins over to Greg," said Charlier. "Having worked closely together over the last several months, I know that the experience and commitment that Greg brings to GPI will continue to advance the company as a global leader in table games equipment and technology."

By   Wed, Sep 09, 2009

Investor Raymond Shapiro has requested that the city of Henderson, Nevada, annex a parcel of land he owns near M Resort for a casino project. Shapiro is also invested in M Resort. The Bureau of Land Management owns 10 of the acres Shapiro has requested be annexed for tourist commercial zoning purposes. Land owners in the area must approve the annexation before the city of Henderson makes its decision. 

By GGB Staff   Tue, Sep 08, 2009

Less than a month after all casinos and slot halls were exiled to the four corners of the land, Russian President Dmitry Medvedev signed a law that lets state and municipal racetracks run
bookmaking operations on-site.

There are 40 racetracks in Russia, only nine of which are privately owned. The law that banned casinos kept intact the bookie system for private racetracks. Now, publicly owned tracks will also be allowed to host bookmaking operations.

The change to the draconian gaming law came from Oleg Valenchuk of United Russia and Mikhail Starshinov of A Just Russia, two pro-government parties, according to the Moscow Times.

The law Medvedev signed mandates that bookmakers and private betting offices obtain a license to operate outside the designated gambling zones. A private bookmaker needs assets of at least 100 million rubles-about $3.4 million-to qualify.

Rostov-on-Don and Pyatigorsk, two of the largest privately owned tracks, have already received licenses.

By GGB Staff   Tue, Sep 08, 2009

Mexico could see a new, comprehensive gaming law passed before the end of this year. That is the opinion of Representative Armando Garcia Mendez, coordinator of the Subcommittee on Gaming and Lotteries in the national Chamber of Deputies.

In an interview with Yogonet, Garcia Mendez said that a major stumbling block to passage of the law was removed when the PRI gained a majority of seats in the congress. PRI supports the new law, while the previous government, formed by PAN, had opposed it.

The new law, if passed, will completely replace the 1947 statute that governs gaming at present. Authority over gaming would be put into the hands of a Games and Draws Commission, which would replace SEGOB's current role in the industry.

Garcia Mendez estimates there are twice as many illegal gaming operations as there are legal ones in Mexico, and that it is a situation that harms the entire industry.

By GGB Staff   Wed, Sep 09, 2009

The COO for Seminole Gaming has been selected: Howard Dreitzer, formerly the company's senior vice president of table games, has been promoted.

Dreitzer supervised table game operations for more than a year before rising through the ranks to become the COO of the Seminole Tribe's Florida casinos.

"Since joining the Seminole Tribe's gaming operation in early 2008, Howard Dreitzer has been invaluable in the launch of blackjack, baccarat and other table games at both Seminole Hard Rocks and the Seminole Casino
Immokalee," said Seminole Gaming CEO James Allen. "I am confident that his future contributions to the tribe's gaming operations will be even more significant."

By GGB Staff   Wed, Sep 09, 2009

Local opposition to the new law authorizing video poker in Illinois bars has begun to surface. Officials of Will County are reportedly considering a ban on video poker. Under the new state law, licensed liquor establishments are authorized to add up to five video poker machines each, but local municipalities have the power to supersede the state law and ban the machines. 

By GGB Staff   Wed, Sep 09, 2009

The Sycuan Casino in Southern California last month opened a new off-track betting facility
inside its casino. It will offer players access to more than a dozen racetracks across the United States. It provides comfortable facilities for over 100 fans to watchth eir favorite races on high-definition TV.

By GGB Staff   Wed, Sep 09, 2009

Hearings began last month on the plans for a $1.5 billion casino resort in Port Molate, in the city of Richmond, which sits on the shores of California's Bay Area. Plans are for a huge casino, retail shopping, a high-rise hotel
and residential development-the purpose of which is to redevelop the city, whose partner in this plan is the Guidiville Bandof Pomo Indians. 

By GGB Staff   Wed, Sep 09, 2009

Officials of Maryland's Anne Arundel County announced they will delay a County Council vote on whether or not to permit a slot casino until the state has awarded the county's license. The casino proposed by Cordish Company for a site next to Arundel Mills Mall has caused local controversy, and votes on a casino have already been delayed. County officials say they will wait for approval of a license for the county's casino before making the
local decision-which means the county vote will likely occur in the fall.

By GGB Staff   Wed, Sep 09, 2009

The owner of the Twin River casino in Lincoln, Rhode Island, has asked a bankruptcy court to allow it to sign a new contract with the Rhode Island Greyhound Owners Association to get out from under $10 million annual
losses. The casino declared bankruptcy last month. 

By GGB Staff   Wed, Sep 09, 2009

Italy is looking to enter the world of online gaming, and has suggested regulations to allow online casinos to
open by the end of the year. The government has been forced to look to other sources of income to help offset economic hardships caused by the worldwide recession. While the government is willing to take a second look at online casinos, there is speculation that the national regulator, the State Monopolies Autonomous Administration, is not yet ready to address the issue. If any regulations come, they are likely to start with online poker before additional casino games are introduced.

By GGB Staff   Wed, Sep 09, 2009

Plans for the state of Delaware to begin taking sports bets took a hit when a federal appeals court in Philadelphia ruled that the plans would violate the 1992 federal ban on sports wagering. Delaware was one of four states specifically exempted by the law because it previously offered a state sports-based lottery, but the court agreed with attorneys from the major sports leagues that the state's plan to accept singlegame wagers on games was more than the exemption permitted. The leagues were challenging the denial of an injunction by a federal judge to halt the wagers before the September 1 starting date. It is unclear at this time whether the ruling would
stop all sports betting or whether the parlay system used in the 1976 lottery game could go forward. 

By GGB Staff   Wed, Sep 09, 2009

After National Indian Gaming Commission Chairman Philip Hogen issued a cease-and-desist letter to the Fort Sill Apache Tribe of Oklahoma regarding its casino operations in New Mexico, the tribe is filing a federal court motion to keep the casino open. The Apaches currently offer paper bingo at their Apache Homeland Casino, and claim that they are legally allowed to do so. In his letter, Hogen stated that the Apaches fulfill none of the requirements specified by the Indian Gaming Regulatory Act, and will be fined eachday bingo operations continue at their casino. 

By GGB Staff   Wed, Sep 09, 2009

The city of Glendale, Arizona and the Tohono O'odham Nation are battling in Maricopa County Superior Court over the possibility of the tribe building a casino within city limits. The judge in the case intends to rule on the matter
before the year is up.

By GGB Staff   Wed, Sep 09, 2009

American Casino & Entertainment Properties has reduced its long-term debt obligations from $1.1 billion to $574 million. The Stratosphere's parent company has increased investor confidence in its long-term financial viability.

By GGB Staff   Wed, Sep 09, 2009

CryptoLogic Ltd. announced last month that Centrebet will be the latest licensee to offer the company's online casino games. A new multi-year contract allows Centrebet to launch at least 10 of the most popular slot games
CryptoLogic provides. The games will go live in the third and fourth quarters of the year. "This deal with Centrebet maintains the strong momentum to establish CryptoLogic as the gaming partner of choice for the world's internet gaming operators, and in particular strengthens our leadership in slot games," Justin Thouin, CryptoLogic's vice president, said.

By GGB Staff   Mon, Oct 05, 2009

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

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

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

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

By Rich Geller   Wed, Sep 09, 2009

Nigel Morrison took over as CEO of SkyCity Entertainment Group in March 2008. Coming from Galaxy Entertainment in Macau, where he had been filling the CFO post, Morrison gave himself 12 to 18 months to get SkyCity performing as he believed it could. When the 2009 results were released recently, SkyCity showed net profit on an underlying basis up 13 percent, to NZ$115.3 million (US$79.2 million) in the fiscal year ended June 30. Not bad for a year that saw the world teetering on economic collapse. He spoke by phone with Global Gaming Business European Editor Rich Geller in August. To read the text of the full interview, visit www.ggbmagazine.com.

Global Gaming Business: How would you characterize development in the year that just ended?
Morrison: For SkyCity, this has been a year of getting back to basics and building up our business. We had very good growth in all our businesses in the second half of this year, including our casinos in Adelaide and Darwin in Australia, in Auckland, and in our cinemas business here. Earnings growth in Adelaide was up nearly 75 percent in the second half of 2009. Our cinemas business was up 60 percent in the second half. Those two were really our core turnaround projects. In our other properties like Hamilton, Darwin and Auckland, casinos were all up around mid single-digit percentages in earnings. So in what is a tough environment-and certainly we had a softer first half in which earnings were down 1.5 percent in the first half of 2009, overall-our earnings were up 10 percent in the second half.

In 2009 we focused on investing in human capital, on technology and systems, on products and customer service. We've significantly strengthened our balance sheet. We raised NZ$228 million in April this year and repaid over NZ$300 million of debt, reducing our overall debt to about NZ$680 million. So we're pretty pleased with where we're at. We had a very sound result in the second half and we've got some momentum moving, and I think we've got a very sound financial base with our restructured balance sheet, our enhanced equity position and our reduced debt. I think we've got a pretty solid platform for future growth.

Did your results mirror the economic situation in your region, or did you surpass results for the region?
We've probably surpassed results, certainly growth results in our region. Our peers are really Crown and Tabcorp, which are the other two listed companies which operate casinos in this part of the world. I think the big turnarounds we've had, particularly in Adelaide, and the growth we've had in Darwin, fare very well compared to our peers.

Adelaide's been very much a turnaround story for us. It was a property that we'd formed the view was not being run very well, and we made a lot of changes to it. We increased its attractiveness, increased visitation, increased spend, and were able to increase our earnings from that business.

I think it would be fair to say, in Australia, our casinos have outperformed our peers. On the back of this announcement and our results, our share prices rallied by about 25 percent, so I think that says that we did outperform market expectations.

Can you name some things that you did specifically, say in the Adelaide casino, to accomplish this?
One of the first things we did was we reinvested in management. We've appointed a new general manager and a new team to run that business-staff with really good pedigrees in table games and slot management. We picked some of the better people out of the industry and set a business plan, and they worked to it. We re-laid out the gaming floor, created some zones and rooms on the gaming floor, introduced a baccarat room, put more technology into the table games, really focused on our customer service, introduced some new, automated table games-and they've done very well for us.

Nothing that I'd say was rocket science, but more back to basics and improving things that weren't being done particularly well. Just really focusing on cleanliness and presentation, customer service, attentiveness, player loyalty programs, great value food and good value bars, the overall entertainment offering, the music, the ambience, the temperature, the lighting, getting all those things right. And some reasonably innovative and creative marketing and a re-launch of the property to the community.

Turning around a workforce's mentality is tough. Did you have to make many changes in personnel?
Of the top 10 people who are running that business, about six of them would be new in Adelaide. We have really focused on people who know how to manage people, who are on the floor more and working with their teams of people, knowing their people and making clear what we expect of those people and really trying to instill a performance culture. It's fair to say that was lacking previously. There's always a long way to go with these things. I think we've improved our communication-I'm a great believer that communication is 90 percent of the answer with all these things, in terms of communicating with staff, listening to what they've got to say and making sure you address the issues they have.

We've been doing a lot of that and I think that has helped move the employee engagement and advocacy forward for the organization, leading to better customer service.

The economic conditions in your region now, moving forward, are they improving? Are there any dangers lurking?
It's probably fair to say that the view for Australia and New Zealand is that the economic cycle has bottomed. It's now a question of when is it going to come out and how will it come out. Will it be rapid, will it come out in the next six months or will it be 18 months away? There have been some green shoots recently and everybody's been seeing green shoots on the horizon and thinking we're about to come out of it.

At the end of the day, my personal view is that it's U.S. confidence and U.S. consumption that will actually be the real determinant of how Australia and New Zealand come out of this cycle. Until things are getting a lot better in the U.S., which then flows through to manufacturing demand out of China, which then looks to Australia and New Zealand for support, until that loop picks up again, it's really hard to see Australia and New Zealand really coming out of this in any significant way. But I think we've certainly bottomed out and we'll hopefully return to some very live, modest growth over 2010. And we'd be hoping by then that the U.S. is moving forward, and we'll get back a little bit on the growth curve that we had in the previous five years.

Besides focusing on your existing assets and core businesses, is there anything further out on the horizon you're looking at?
We certainly want to realize the potential of all the licenses that we have. We think there's still a lot more potential we can develop with our Adelaide business, our Auckland business and in Darwin. We own 50 percent of the casino in Christchurch, which is New Zealand's second biggest city, and we'd like to acquire the other half of that; we think we could run that better and make that a better investment. If we can do all those things, with our newly restructured balance sheet, I think that would make us a pretty strong and successful company.

Having said that, if something was to happen with Tabcorp, and some of the casinos in Australia were to become available, we'd be very interested in looking at those. We're probably not at the point of looking at anything in the U.S. or Asia or Macau at this point, but certainly we want to understand what's happening in those parts of the world, and we'll see where we go in the future.

By Frank Legato   Wed, Sep 09, 2009

I want to play at the Currency Club casino. It's in London, and it's like no other casino.

It's at Buckingham Palace.

It seems a member of the Queen's Royal Protection Command got caught running a betting shop called the Currency Club right at the palace. But that's not the funny part. (Here at Frankly Speaking Inc., we only deal with the funny part.) What came out at the trial last month was hilarious.

In addition to running the private casino, the Queen's guards allegedly showed up for work drunk all the time, and would sit on her throne when she wasn't there. They slept off hangovers in palace bedrooms.

My personal favorite trial revelation: One of the guards said the Queen has a yellow rubber ducky with a teeny little crown on its head.

I was going to write about this, but it isn't really about the gaming industry, is it? Therefore, I am prohibited by strict policy of our publishing company from writing about it in this space. (Whew! I'm glad I realized that.) Let's see what I can make fun of in the actual gaming industry.

It's my job, you know?

Well, if I can't play at Buckingham Palace, I'll play in Pittsburgh. Yes, that's right. If you flip to one of our fine features this month (OK, I wrote it), you'll see that the casino in Pittsburgh, Pennsylvania is open. If you're a regular reader of this column-and hey, who isn't?-you know that Pittsburgh is where I was born and raised. And if you look anywhere in the country, we Pittsburghers are all over the place, thanks to our old steel economy collapsing. I see Steelers shirts and Penguins shirts wherever I go. (OK, not in Bulgaria. But I did see one in Amsterdam.)

Yes, we, the Pittsburgh Nation, can be pretty annoying at times. Sorry.

But our annoying regional pride is why the Rivers Casino will do some great business. The place was designed to take advantage of the fact people like living in Pittsburgh, and love their teams. Look at where it is. Right next to Heinz Field, home of the Steelers. You can walk there. You can go into Rivers after the game to wait out the parking lot crowds. There will even be a perch to do that, starting in October. The Wheelhouse Bar will overlook Heinz Field. And it's a sports bar. How cool is that?

The man who runs the place really knows his stuff. Ed Fasulo's been in the business since 1969, when he opened the International in Las Vegas as F&B director. The guy used to open up the kitchen to make sandwiches for Elvis in the middle of the night. He's been all over the place since then, from Vegas to Atlantic City back to Vegas then to Iowa, was it? Anyway, the man knows how to run a casino, he ended up in Pittsburgh, and they love him there. (Even if he is a Patriots fan.)

I went to the casino's grand opening-hundreds of people huddled together in sweltering heat. They just wanted to get in the front door. Fasulo, the mayor, the county executive (he got booed), Don Barden, Neil Bluhm... all saying essentially the same thing as sweaty people were shouting "Open the door!" Bluhm got about three words out and thanked everyone, then they cut the ribbon, just as the crowd was about to get
battering rams and light torches.

Inside, there was the usual casino stuff, in a really nice atmosphere. Playing here is like playing in Vegas, only with lower payback percentages. Oh, and three rivers, and pro sports, and my aunt's house up the street.

That's why I had fun there, and that's why most Pittsburghers will have fun there. It's in Pittsburgh. I'm sure the people who live there feel the same way. (I mean people who live in Pittsburgh, not in the casino.) They even picked up on our pride by naming different areas after local stuff. Club 446, because there are that many local bridges. "Andrew's" steakhouse, because of Andrew Carnegie, Andrew Mellon and Andy Warhol, famous Andrews from Pittsburgh. (Like the Andrews Sisters, right?)

Yes, it was nice to visit my old stomping grounds, but I'm really looking forward to my trip to Vegas this month. I love Vegas. (Lots of Pittsburgh people there.)

After Vegas, I think I'll go to Buckingham Palace.  I'm going to get the guards drunk and put a Steelers shirt on the Queen's throne.

By Frank Fantini   Wed, Sep 09, 2009

It's called volatility.

And investors don't like it.

They don't like stock prices spiking and plunging any more than most casino operators like the volatility of whales betting six figures a hand, winning or losing a million dollars or more a night.

Barry Sternlicht, the hotel owner and developer, got out of casinos because of the volatility. Slots are a good business. You can predict a smooth revenue flow. But not casinos, he said, referring to high-end joints like Caesars Palace.

And Harrah's CEO Gary Loveman once explained his decision to quit going after whales by noting that 10,000 or 12,000 people can be having fun in the building, but you sweat out how one guy will do in the high-limit room.

Likewise for investors.

There's a reason the Chicago Board Options Exchange Volatility Index-the VIX-is called the fear index.

And my, have gaming stocks been volatile the past year, with even the most glamorous names dropping more than 90 percent from autumn to spring, then rebounding several hundred percent.

Sometimes, the big swings come in a single day.

Consider investor reaction to earnings reports a few weeks ago from what we call the Triplets-Wynn, Las Vegas Sands and MGM Mirage, companies concentrated on the Las Vegas Strip and Macau.

All three reported essentially the same results-significant cost reductions, weakness in Macau, very significant weakness in Las Vegas. And their outlooks were the same-business has stabilized and signs of an upturn are starting to appear.

So how did investors react? Wynn shot up 13 percent. LVS plunged 16 percent. MGM nudged up 3 percent.

Why such different reactions?

Some say it was the expectations game. Wynn did better than expected. LVS missed. MGM expectations were all over the place, so reaction was a little muddled.

But expectations alone don't answer the question. No matter that WYNN did better. His numbers and outlook followed the pattern. The reaction diverged.

Proof of that came just days later when LVS jumped 12 percent on a better-than-expected national unemployment report, and no fundamental change for the company itself.

Simply put, investors reacted to ephemera.

This tendency for dramatic swings up or down on often-trivial or just tangentially relevant news is driven by fear, in an uncertain market that follows one of the worst and longest bloodbaths in Wall Street history.

And so, when volatility reflects fear and
uncertainty, investors should stay away from stocks, we're told.

And yet, volatility can represent opportunity for those who want to buy low and sell high.

The bear market has given a bad name to buy-and-hold investors, leading some even to criticize the Oracle of Omaha, Warren Buffett. And the most storied value investors, who by definition must be long-term as they wait for the market to recognize the value of their holdings, have gotten their clocks cleaned.

One problem with buy-and-hold is that it became too popular.

Naïve individuals jumped on board almost thoughtlessly, much like day trading attracted so many amateurs during the tech bubble nearly a decade ago.

Then, when they flamed out, they gave long-term investing a bad name. It didn't help that the likes of Kirk Kerkorian and Sheldon Adelson saw billions of dollars in value disappear. Or that the legendary value investors did the same.

Yet, long-term investing still works if an investor keeps two points in mind:
    

• You are buying a piece of a business, not a stock. If the company and its prospects remain sound, volatility allows you to buy it cheap.

• You've got to be prepared to admit a mistake and get out if you no longer sense the company has the value or the prospects you saw before. A caveat on this point is time horizon, because, as the old saying goes, the market can stay irrational longer than you can stay solvent.

Perhaps the best example of long-term investing in the gaming industry is Wynn Resorts. And perhaps the best practitioner is Steve Wynn himself, as he has demonstrated he knows how to take advantage of volatility, selling additional shares when the stock is high and buying back when it is low.

When WYNN IPO'd in 2002, investors had the opportunity to both invest from day one and rely on a track record. That is because Steve Wynn had both a financial track record, at Golden Nugget-Mirage Resorts, and a well-practiced, well-known mode of operation.

And, despite all the ups, and this past year's steep downs, anyone who bought WYNN at its IPO price of $13 a share has been handsomely rewarded.

Indeed, the volatility of this year's market gave investors the chance to buy more WYNN very cheaply in the spring.

Put another way, the old adage still applies-buy low, sell high.

There's a reason that "buy on the dips and sell into rallies" isn't a similarly regarded slogan. That is because no one knows if the latest dip isn't just the start of more, or if the rally won't be followed by more after a stock gets away.

That kind of investing is more for the VIX followers and those who respond to every breathless debate of sound bites on CNBC.

By Frank Fahrenkopf   Wed, Sep 09, 2009

After a turbulent August recess-during which legislators were confronted by constituents anxious about the relentless economic recession and pending government reform-Congress has returned to work with a renewed sense of urgency. Its forthcoming deliberations promise to have a profound impact on the commercial casino industry and its employees.

Currently, a plethora of compelling issues compete for the attention of policymakers. Top-tier concerns such as health care and energy reform continue to dominate national headlines. Those discussions threaten to supersede other pieces of legislation crucial to our industry, such as the Travel Promotion Act. The TPA would designate a substantial sum of federal money to promote domestic tourism, breathing new life into destination cities across the country, including gaming communities, which welcomed fewer international visitors in 2008 than in 2000.

The American Gaming Association is hard at work positioning the commercial casino industry at the forefront of these issues. Thanks to the support of our members, we are prepared to aggressively promote and protect the interests of our industry, and to engage in debates on Capitol Hill with a resonant, unified voice.

To do so, however, we must first address a perception problem that persists among members of Congress. Unfortunately, despite the AGA's best efforts, some of our country's most influential legislators fail to understand that the commercial casino industry represents a critical segment of the American economy.

For example, the media has widely reported that many federal agencies are excluding destinations perceived to be too leisure-oriented from consideration for government meetings and conventions. This "travel blacklist" includes Las Vegas and Orlando, the country's flagship gaming market and its top convention location. Recently, the Federal Bureau of Investigation, the Bureau of Indian Affairs and the General Services Administration relocated conferences from Las Vegas.

As I mentioned in a letter to President Obama about this issue, it seems counterintuitive for government agencies to avoid destinations that cater to tourist travel, since the drop in consumer spending has resulted in significant value in these locations. Las Vegas' world-class, state-of-the-art hotels-which provide conference attendees with access to convenient and abundant meeting space-have slashed rates to levels not seen in more than a decade.

Perhaps some policymakers do not realize that the ripple effect of the travel blacklist is widespread. When revenue from business meetings and events deteriorates, bellmen, custodians, casino employees and other hourly wage employees lose their jobs. In short measure, restaurants, florists, gift shops and other companies that rely on corporate gatherings are forced to shut their doors.

To ensure that our industry receives the consideration it deserves from Congress, the AGA must re-educate legislators about the many benefits casinos bring to communities, including thousands of good-quality jobs, opportunities for local vendors and much-needed tax revenue.

To that end, the AGA has planned the commercial casino industry's first coordinated Washington, D.C. outreach event later this month. For the very first time, industry representatives from across the country will convene on Capitol Hill to meet with our nation's top decision-makers.

The fly-in event represents an unprecedented opportunity for the commercial casino industry. In the face of the worst economic recession this country has seen in decades, top gaming executives-who frequently compete directly with one another for business-will join forces. For two days, they will meet with congressional leaders from both parties, as well as representatives from the Obama administration, to share information about the economic value of the commercial casino industry and to promote policy decisions that support the industry and the communities it serves.

Going forward, the AGA plans to host a similar fly-in event every year. Doing so is crucial to our ongoing efforts to develop mutually beneficial relationships with key members of Congress. Our industry must have a powerful and consistent presence on Capitol Hill.

In an effort to capitalize on the momentum achieved during this month's fly-in event, the AGA also will launch our new grass-roots outreach website.

This online resource-located at www.gamingadvocacycenter.org-will mobilize commercial casino industry employees, suppliers and other stakeholders to conduct outreach to policymakers on issues of industry-wide concern. The website will provide industry stakeholders with useful tools-such as sample letters and talking points -and encourage them to call, write or e-mail their respective members of Congress when important issues arise. Developing a robust grass-roots network will further strengthen our industry's voice in Washington.

Another crucial component of any successful effort to educate and engage members of Congress is a strong political action committee. Changes to campaign financing laws have made PAC contributions one of the few remaining ways to build positive relationships with legislators and others who develop public policy. A robust PAC will allow the industry to support political candidates who have demonstrated a willingness to fight for the commercial casino industry.

We recently expanded the AGA membership base to include individuals, as well as organizations and companies, involved in the commercial casino industry. We are encouraging all of our members to contribute to the PAC, which will serve as their collective voice on Capitol Hill on the issues that matter most. A well-funded PAC will broaden the AGA's reach in Washington and maintain an edge in today's aggressive political environment.

As Congress prepares to debate some of the most consequential issues of the decade, the AGA must have a seat at the table. When making key decisions, legislators must take into account the commercial casino industry and its vital contributions. Our industry currently is grappling with a daunting set of challenges. Enhancing our voice on Capitol Hill is essential to our continued survival and-when the economic crisis subsides-our future success.

By Roger Gros   Tue, Sep 08, 2009

The media are kind of like women. Can’t live with ‘em; can’t live without ‘em.

I’ve spent a good portion of my career trying to educate members of the mainstream media on the realities of gaming. Granted, I’m biased toward our industry, but there are so many anti-gaming “experts” out there, I believe I must try to balance out the shrill negative naysayers with a positive, progressive message.

But obviously, I can’t do everything, and most stories get written without my input and therefore become “hatchet jobs.”

One such article was a cover story in Time magazine last month, “Fabulous Less Vegas.” The author, Joel Stein, confesses with embarrassment that he’s come to love the city over the past 10 years, and even penned a paean—read “puff piece”—to Vegas five years ago as a cover story for the same magazine.

This time, however, Stein seems to be rejoicing in the Vegas troubles. He celebrates the fall from grace of the huge casinos on the Strip and even seems to gloat that small homeowners in the city are being hit with the same punishment for the same crimes. He finds a convenient speculator upon which he pins the sins of the entire city.

And then, of course, Stein is puzzled by the fact that the optimism that made Las Vegas great didn’t disappear. He actually makes a bet with Steve Wynn against the city’s recovery. Shows exactly how much he truly “loves” Las Vegas.

Now, I saw the way Time magazine works back in the early 1990s when it sent a team of reporters to Atlantic City to document the “slums in the shadows of casino palaces” story that was, even at that time, an image of the past. But they could not be dissuaded by the truth, and sure enough, the cover photo showed a homeless man sleeping under a lifeguard boat in the very shadow of a casino. Great image, just not very accurate.

If Stein were just one of the “drive-by” journalists who pop in to make judgments about the town and the gaming industry as a whole, it wouldn’t be such a big deal, but it seems the mainstream media is feasting on Las Vegas these days.

No, the elite media is taking pleasure in the difficulties of the gaming industry in general, and Las Vegas in particular. For example: Chicago Sun Times writer Neil Steinberg parachutes into Vegas (at the request of his son on a family vacation) to do a piece he so cleverly calls “What Happens in Vegas: Little Good.” He’s in town for less than 24 hours and manages to complain about his hotel (Excalibur), timeshare shills, and even—horror of horrors—gambling itself!

It’s often amazing to me that these kinds of pieces get written without as much as a call to the hotel or seemingly any editorial oversight whatsoever.

But the newspapers and magazines certainly aren’t alone. There have been numerous stories on radio and television that tread the same ground claimed by the “parachute” journalists.

And it doesn’t just happen in the U.S., either. The joy with which journalists are reporting the travails in Macau is undeniable. Stanley Ho’s illness last month was quickly followed up by speculation about who would succeed him, as if it were a foregone conclusion that he would die. And barbs directed at Australian Jamie Packer and his ill-fated gaming investments have that same air of retaliation and celebration.

No, I don’t have much hope that this will change anytime soon. This feeding frenzy and obvious glee at the misfortunes of the gaming industry will continue. And in the long run, it doesn’t really matter.

What matters is that we provide the best service and continue to offer first-class facilities for our customers, our employees and our shareholders. Because, in the end, that’s the heart and soul of gaming, not some silly journalist who thinks he’s being witty and “original” by describing how “sad” he is that the casinos are hurting. Our revenge will be returning to prosperity and offering quality experiences to all who cross our thresholds.