GLOBAL GAMES AND GAMING MAGAZINE I AUGUST 2014 I WWW.G3NEWSWIRE.COM I WWW.G3-247.COM INTERNATIONAL GAMING NEWS I KNOWLEDGE I STATISTICS I MARKET INFORMATION I DIGITAL AND PRINT

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CHILE

WWW.G3-247.COM - THE GAMING MEDIA VAULT

Dreams withdraws its licence application in 0 8 Chile to operate the Casino Chillán

New Zealand Land of the long white cloud AUSTRIA

The race for three additional casino licences 1 4 in Austria has finally been decided

MARYLAND

The Horseshoe Casino Baltimore is ready to 2 9 open its doors at the end of August

SOUTH AFRICA

BetTech Gaming is helping to shape the 6 sports-betting market in Africa

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Contents AuGust 2014

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WWW.G3-247.COM SOUTH AMERICA NEWS 01: Chile dreams has announced its decision to withdraw its application for a licence in Chile to operate the Casino Chillán

EMEA NEWS 03: AustriA the race for three additional casino licences in Austria has been decided after a 12 months tender period

– G3Newswire pg 08

– G3Newswire pg 14

01: Chile sun international is seeking to acquire the majority of the remaining stake in Chile’s monticello casino for s$114m

04: uK the Alea Casino in Glasgow has installed the latest fusion multi-player terminal solutions from Bally technologies

– G3Newswire pg 10

– G3Newswire pg 16

02: PANAmA two large scale casinos in Panama are in danger of losing their licences due to allegations concerning the attached hotels

05: GreeCe A consortium has bought a huge area of Athens waterfront with plans to develop the area into a massive luxury resort

– G3Newswire pg 12

– G3Newswire pg 19

NORTH AMERICA NEWS 06: NevAdA Caesars has provided details for the proposed development of Caesars New york, an $880m resort in Woodbury, Ny

ASIA & OCEANIA NEWS 08: PhiliPPiNes PAGCor has laid down the law, stating that manila Bay resorts can’t open unless tiger resorts leisure gains a local partner

– G3Newswire pg 28

– G3Newswire pg 34

07: mArylANd the horseshoe Casino Baltimore has opened its doors to the public at the end of August offering a huge new venue

09: AustrAliA Aristocrat has confirmed the acquisition of us-based Class ii gaming developer, video Gaming technologies for us$1.3bn

– G3Newswire pg 29

– G3Newswire pg 35

06: NevAdA No sooner had iGt announced its move to sell, GteCh quickly became the frontrunner to acquire the us gaming giant

10: CAmBodiA entertainment Gaming Asia is to sell its dreamworld Casino in Pailin, Cambodia, to a local Cambodian company

– G3Newswire pg 31

– G3Newswire pg 36

G3Newswire.com delivers daily international gaming industry news and information, with the G3Newswire newsletter circulated three times per week to a 8,000+ database of gaming industry influencers

NEW ZEALAND 11: All elemeNts iN hArmoNy has New Zealand found the right balance with its public gaming bodies all expected to return profits to the community? – G3-247.com report pg 40

12: CoNverGeNCe of the floor Campione d’italia is utilising evolution Gaming’s in-venue studio to present its unique land-based casino experience – insight pg 22

04: simulAted GAmiNG GameAccount Networks’ daniel lindsay argues that land-based casinos are missing opportunities in the online space – Comment pg 25

INSIGHT 13: iNdustrious stool desiGN Patir design blends the latest in-house chair design with robust materials sourced from the very finest suppliers – insight pg 26

Gaming Publishing Samson House, 457 Manchester Road, Manchester M29 7BR, United Kingdom

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Comment AuGust 2014

It’s been six years since Apple’s AppStore launched and changed the way we interact with our phones. A whole host of new business models were born during this period while existing businesses have had to adapt to manage the challenges and opportunities presented. Publishing continues to evolve to remain relevant within an increasingly App-orientated market, which has touched gaming just as it has impacted everywhere else. Today there are 1,252,777 Apps available on the App Store and as many as 60,000 Apps are added every month. Over half a million new Apps are expected to join the Store over the next 12 months. Staying relevant during this process has proved a major challenge, with more than 21 per cent of Apps that have entered the App Store no longer in existence - that’s around 350,000 dead Apps. Books and games share the ignominious top spots for the highest percentage of dead Apps, 27 per cent and 21 per cent respectively. The term Zombie App has also been applied to Apps that have fallen off the Apple lists and into a dead space where few visitors dare to travel. In fact, almost 80 per cent of all Apps are considered to be Zombie Apps. Having launched our second App into the marketplace for Android, Blackberry and iOS last month - the G3Newswire App - our complimentary App to our daily news website has been downloaded by 1,650 users in just six weeks, Our first G3i App was launched in 2010 and continues to expand with over 3,800 subscribers having THERE ARE downloaded the App.

1,252,777 APPS ON THE APP STORE AND AS MANY AS 60,000 APPS ARE ADDED EVERY MONTH.

Surprisingly, and despite launching two new websites and two Apps in the space of three years, in addition to a tri-weekly emailer, we are currently printing and distributing more physical magazines than ever. We have shifted from a magazine publisher to a content distribution company with more contact points with readers, enabling them to keep up to date wherever and whenever they are in the world. Thank you for helping us stave off the Zombie apocalypse!

editoriAl

AdvertisiNG

editor Lewis Pek [email protected] +44 (0) 1942 879 291

Commercial director John Slattery email: [email protected] +44 (0)7917 166471

News editor Phil Martin [email protected] +44 (0)161 236 6669 Associate editor (mAlAGA) Karen Southall [email protected] Consultant John Carroll (BillerBeCK) [email protected] Correspondent James Marrison [email protected] Contributors Daniel Lindsay David Addison Bepi Mottes Mark Gibson Rasmus Sojmark

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Advertising executive James Slattery email: [email protected] +44 (0)7917 166471 ProduCtioN

sub editor Lisa Nichols senior designer Gareth Irwin Production manager Paul Jolleys subscriptions manager Jennifer Pek Commercial Administrator John Pek

Events AuGust 2014

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August 12-14, 2014

Australasian Gaming Expo 2014

Location Sydney Exhibition Centre, Sydney, Australia Contact Ross Ferrar Organiser Gaming Technologies Association Level 34,

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August 22, 2014

Crimea Gaming Congress, Russia

Location Yalta, Crimea, Russia Organiser Smile Expo 11/10 Letnikovskaya Str Moscow Russia 115114

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Entertainment Arena Expo 2014

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1st Morarilor Street Bucharest, Romania 022451 Show hours: 10am-5pm (2-3rd) Final day - 10am-3pm Tel: +40 21 335 6681 Email: [email protected] Web: www.earena.ro

September 9-12, 2014

10th European Conference on Gambling Studies & Policy Issues

Location Hilton Kalastajatorppa, Helsinki, Finland Organiser Assissa Consultancy PO Box 9150 Amsterdam

MEI is ISO 9001:2000 certified. ©2014 MEI. All rights reserved.

Tel: +7 (495) 212-11-28 Email: [email protected] Web: crimea.gamingcongress.ru/en

September 2-4, 2014

Location Romexpo Fair Ground, Bucharest, Romania Contact Anton Vlad Organiser Expo 24 Romania

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50 Bridge Street Sydney, New South Wales Australia NSW 2000 Tel: +61 2 8216 0931 Email: [email protected] Web: www.austgamingexpo.com

Netherlands, 1006 AD Contact Pieter Remmers Tel: +31 20 689 5989 Fax: +31 20 689 6418 Email: [email protected] Web: www.easg.org

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September 30-October 2, 2014

G2E 2014

Location Sands Expo & Convention Center, Las Vegas, Nevada, United States Organiser Reed Exhibition Companies 383 Main Avenue Norwalk Connecticut

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October 9, 2014

BOS Bookmakers Trade Fair

Location Wolverhampton Race Course, United Kingdom Organiser Bookmakers Office Supplies Ltd., PO Box 9 Woodbridge

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United Kingdom IP12 3JN Tel: +44 1394 383420 Web: www.bosmag.co.uk/bookmakers-trade-fair-2014/

October 15-17, 2014

ENADA Rome 2014, Italy

Location Rome Expo Centre, Rome, Italy Contact Sonia Bodellini Organiser Rimini Fiera Spa Via Emilia 155

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United States, CT 06851 Contact Brett DeWeese Tel: +1 203-840-5341 Fax: +1 203 840 9662 Email: [email protected] Web: www.globalgamingexpo.com

Rimini Italy 47900 Tel: +39 0541 744250 Email: [email protected] Web: www.enada.it

October 15-16, 2014

The Autumn Coin-op Show, UK

Location Chelsea Football Club, United Kingdom Contact Karen Cooke Organiser Swan Events

Office 10, Clare Lodge 41 Hollybush Lane Harpenden, Herts United Kingdom AL5 4AY Tel: +44 1582 767254 Email: [email protected] Web: www.coin-opshow.co.uk

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G3Newswire south AmeriCA NeWs

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coNtrovErsy risEs ovEr chilláN Dreams has announced its decision to withdraw its application for a licence in Chile to operate the Casino Chillán Chile - Operations

El opErador dE casiNos latiNoamEricaNo Dream ha anunciado su decisión de retirar la solicitud para operar un casino en Chillán. El Director Corporativo de Dream, Claudio Tessada, afirmó que la empresa «no seguirá prestando su apoyo a un proceso irregular». sEgúN las Estadísticas publicadas por la Superintendencia de Casinos de Chile (SCJ), los ingresos brutos derivados del juego para los 16 casinos que operan en Chile ascendieron a 42,5 millones de dólares estadounidenses, lo que supone un 19,1 por ciento más en comparación con el mes de abril. Si comparamos la cifra con el mismo mes del año pasado, los ingresos aumentaron un 21,4 por ciento. suN iNtErNatioNal Está iNtENtaNdo adquirir la mayoría de la participación restante en el casino chileno de Monticello por unos 114 millones de dólares estadounidenses. Actualmente, Sun está en posesión de una participación minoritaria en el casino. En virtud del acuerdo, Sun adquirirá un 54,7 por ciento de las acciones del Monticello Grand Casino de Chile que añadirá al 44,2 por ciento de participación que ya posee. la asociacióN dE FabricaNtEs dE EquipamiENto de Juego (AGEM) ha aprobado la creación del nuevo Comité Mexicano de la AGEM con sede en Ciudad de México, que se concentrará en los problemas específicos del mercado mexicano que afectan a una amplia gama de proveedores del sector del juego.

Latin American casino operator, Dream, has announced that it had decided to withdraw its application to operate a casino in Chillán. Dreams Corporate Manager Claudio Tessada said the company ‘will not continue to endorse an irregular process.’ In a corporate statement Dreams said: “It would not continue to endorse an irregular process and for that reason we have opted to withdraw our bid. We have been the object of an infringement of our rights in the Regional Council (CORE) which has acted in a biased way thus damaging our legitimacy. To carry on with this process would mean to consent to this decision which is something we are unwilling to do. ““This has been the second time that Dreams has suffered such a situation. The first was in 2013 in Ovalle, when the Regional Council of Coquimbo based its unfavourable decision on a report by the Director of Municipal Works, when the law is explicit that it may only refer to the municipality where it is located, “the company said. “The board of Dreams Inc. has expressed its full commitment with the authorities and institutions, as well as the entire industry to move towards

more regulation to avoid situations like those experienced in Bío-Bío and Coquimbo. And until we see policy and regulatory changes, it will favour its development in other Latin American countries, “the company added in its statement. The decision comes after Marina del Sol Casino won the most points during the first stage of the bidding process. Besides Dreams and Marina del Sol Casino, the Boldt Peralada Group have also bid for the right to operate the remaining casino licence in Chile. In its next stage the local municipal council must also look at each proposal as well as head of the Chilean Gaming Board and the Chilean Tourism Board. But Dreams is now out of the running. The Resolution Council of the Chilean Gaming Control Board announced that starting in January 2014 it would begin the licensing process for a new casino after Termas de Chillan withdrew from the market in 2013. The Chilean Gaming Board officially accepted Termas de Chillan’s withdrawal in November 2013 after the operator blamed market conditions as well as the location of the casino for its decision to close.

Puerto Rico Gaming laboratories international has completed a jurisdiction-wide inspection of all gaming devices and systems in Puerto rico. the 12-week inspection covered 23 casinos and 7,690 gaming devices. Gli director of latin American development Karen sierra-hughes said: “We have worked very hard to earn and maintain a high level of trust by regulatory entities to perform duties that support their regulatory objectives. in this case, our objective was to help Puerto rican regulators to continue the high level of integrity of the Puerto rico slot operation, thereby creating a safer gaming environment for the public, and we are very pleased with our successful completion of this inspection.”

El comité dE coNtrol dEl juEgo EN colombia, Coljuegos, está avanzando rápido con sus planes de conectar todas las máquinas tragaperras a un servidor con control centralizado. La conexión online de todas las máquinas tragaperras se tomó en consideración por primera vez en el año 2008, cuando Colombia modificó sus leyes sobre el juego, y a continuación se aprobó en forma de ley en 2010. No obstante, Colombia es el único país de la región que dispone de una legislación que permite la monitorización online de máquinas tragaperras, si bien dicha ley aún está pendiente de llevar a la práctica.

Gaming Revenues on the rise across the Chillean market

El gobiErNo dE puErto rico pErdió uNa cantidad estimada de 8 millones de dólares estadounidenses entre los años 2010 y 2013 por no aplicar impuestos a las máquinas tragaperras que operan en la isla. Según las estadísticas publicadas por la Oficina de Ingresos Internos, el Gobierno no ha conseguido recaudar impuestos en las 3569 máquinas tragaperras que cuentan con licencia para operar en bares y restaurantes. La OCPR descubrió que no se había aplicado ningún impuesto por tasas de licencia a ninguna de las máquinas tragaperras entre julio de 2010 y diciembre de 2013.

CHILE According to statistics released by The Chilean Gaming Control Board (SCJ) gross gaming revenues for the 16 casinos operating in Chile stood at US$ 42.5m in May, a 19.1 per cent increase compared to April. When compared to the same month last year revenues increased by 21.4 per cent.

grEENtubE, uN dEsarrollador y provEEdor dE juegos de habilidad para Internet, dispositivos móviles, PC e iTV, y su empresa asociada, el Novomatic Group, han adquirido Bingocams, una de las plataformas de bingo online más populares e innovadoras, de manos de Dazzletag Entertainment Limited.

Both visitor numbers and the average spend also increased when compared to April with a total of 482, 421 thousand visitors who spent on average US$88.50 This is compared to 409,410 visitors in April who spent on average $US 87.6, a 1.1 per cent

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increase. The 16 municipalities and 11 regions where the casinos are located received a total of US$7.1m in gaming tax revenue while casinos generated an additional US$ 2.5m in tax on entrance fees for the state. On top of this amount the casinos also generated US$ $6.8m in gaming VAT. In terms of gross gaming income generated by the casinos, the Monticello Grand Casino came in first place with 29.9 per cent. In second place came Casino Rinconada with 12.1 percent of market share. In third place was Marina del Sol with 1.9 per cent then Enjoy Antofagasta with 9.4

per cent. While in fifth place came Dreams Temuco with a total of 7.1 per cent of market share. According to the latest statistics released by the SJC the 9,635 slot machines in operation in May handed out an average of 93.5 per cent of the stake. While the total bets made on slot machines stood at US$525.1m the prizes handed out stood US$491.2m leaving a win for the casinos of US$34m. Casino Revenues are bound to increase long term with another major opening in the near future. Earlier this year The Resolution Council of the Chilean Gaming Control Board announced that starting in January 2014 it would begin the licensing process for a new casino after Termas de Chillan withdrew from the market in 2013.

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suN to iNcrEasE moNticEllo sharE Sun International is seeking to acquire the majority of the remaining stake in Chile’s Monticello casino for S$114m Chile - Operations

El miNistErio dE FiNaNZas dE austria ha concedido una de las nuevas licencias de casino en la capital, Viena, a Grand Casino Wien, una empresa conjunta dirigida por Stadtcasino Baden Group, el renombrado operador del Grand Casino Baden, situado cerca de Zúrich, y el Casino Davos, también en Suiza. Las otras dos concesiones se han otorgado a Novomatic, una operación que creará cientos de nuevos puestos de trabajo en Austria. Novomatic construirá dos emblemáticos casinos vanguardistas, uno en el Prater vienés y otro en Bruck an der Leitha, en la Baja Austria. iNtErNatioNal gamE tEchNology ha Firmado un acuerdo con DLV para instalar sistemas IGT en 50 salas de tragaperras que conectarán aproximadamente 1000 máquinas en establecimientos repartidos por toda Letonia en los próximos dos años. la asociacióN dE FabricaNtEs dE EquipamiENto de Juego (AGEM) ha aprobado las solicitudes de afiliación de nueve empresas nuevas, lo que aumenta a 141 miembros el grupo sectorial compuesto por los proveedores líderes mundiales en el ámbito del juego. gamiNg partNErs iNtErNatioNal ha FiNaliZado la adquisición de GemGroup por 19,75 millones de dólares estadounidenses. Gregory Gronau, Presidente y Director Ejecutivo en Jefe de GPIC, afirmó: «Es una gran satisfacción para nosotros anunciar que ha finalizado con éxito nuestra adquisición de GemGroup y de sus famosos productos de juego de la marca Gemaco». la italiaNa gtEch s.p.a., ha suscrito uN acuerdo de fusión definitivo con International Game Technology, con sede central en Las Vegas (Nevada, EE. UU.). Según los términos de la operación, IGT y TECH se fusionarán bajo un nuevo holding organizado en el Reino Unido (NewCo). En cifras acumuladas, el valor de la operación es de aprox. 6400 millones de dólares, incluida la asunción de la deuda neta existente de IGT, que asciende aprox. a 1750 millones de dólares. aristocrat sE dispoNE a comprar El grupo estadounidense Video Gaming Technologies en una operación de 1300 millones de dólares que le dará a Aristocrat una mayor presencia en el importante mercado estadounidense de los casinos tribales. Está previsto que el acuerdo en efectivo, que también supondrá la refinanciación de la deuda de Aristocrat en un nuevo paquete de 1400 millones de dólares, se culmine a finales del primer semestre de 2015. aristocrat tambiéN ha aNuNciado la adquisición de todos los activos materiales de Paltronics Inc., incluida la IP relacionada con el producto. Paltronics es un proveedor de productos y sistemas complementarios para el juego con sede en Crystal Lake (Illinois, EE. UU.). El Estado dE NuEva galEs dEl sur lE ha concedido a Crown Resorts, de James Packer, una licencia para su lujoso complejo integrado de 6 estrellas en Sydney, lo que constituirá su segundo casino en la ciudad. Crown tendrá que pagar 100 millones de dólares australianos (94 millones de dólares estadounidenses) por esta licencia para 99 años, que también especifica una serie de términos y condiciones distintos, incluidos niveles de ingresos fiscales mínimos para el Gobierno estatal.

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Sun International is seeking to acquire the majority of the remaining stake in Chile’s Monticello casino for around US$114m. Sun currently owns a minority stake in the casino. The deal will see Sun acquire a 54.7 per cent equity interest in the Monticello Grand Casino in Chile to add to its 44.2 percent stake in the property. Sun also will acquire shareholder loans and cash totalling about $32m. Sun is to acquire another 10.5 per cent stake from minority shareholder Chilean Enterprises and has also made an extended offer to buy the remaining 1.1 per cent in Monticello held by Lasud Chile. “The acquisition of this additional stake is in line with our stated intention to grow our presence in Latin America and in particular Chile, which has a well regulated gaming industry and good growth prospects,” Sun CEO Graeme Stephens said in the statement. “It provides us with control over a great asset and a free hand to use and incorporate it into our wider strategy for Latin America. “The transaction provides the company with the opportunity to positively leverage its investment in Monticello, which is well entrenched as the leading gaming and entertainment destination in

Chile,” said Mr. Stephens. “It provides the opportunity for Sun International to acquire an increased economic interest in, and gain strategic control over, what is regarded as one of [Latin America’s] best casinos.” Mr. Stephens added that the Monticello, which Sun has developed and managed since the project began, forms the cornerstone of the company’s offshore strategy. The casino is one of the two casinos that services the Santiago market and has, in the quarter to March, increased its market share from 65.3 per cent to 72.5 per cent. In the halfyear results to December, the casino recorded a decline of 22 per cent in revenue due to the impact of the new anti-smoking regulations. The transaction would be fulfilled on unconditional approval by the Chilean gambling board and the approval from Sun shareholders. Sun also plans to open its new Ocean Club Casino in Panama City in September this year at an estimated cost of $105m. The casino, part of the Trump Ocean Club International Hotel and Tower, will feature 600 slot machines and 32 gaming tables.

Mexico According to the president of the Commission for investigating the Granting of licences for Games and raffles in the Chamber of deputies, an initiative, which would see many fundamental changes to mexico’s gaming laws, could be ready as early as september. deputy fernando Zárate said that the initiative would replace the current directorate of Gaming and would remove the so called “mother” permits, which allow the opening of a number of gaming operations under a single licence.

AGEM establishes first Mexico Committee for the market MEXICO The Association of Gaming Equipment Manufacturers (AGEM) has approved the creation of the new AGEM Mexico Committee based in Mexico City that will focus on issues specific to the Mexican market that affect a wide range of gaming suppliers. Current AGEM member companies with a presence in Mexico include Ainsworth Game Technology, Amatic Industries, Aristocrat Technologies, Austrian Gaming Industries (Novomatic), Bally Technologies, Boss Gaming, Cadillac Jack, Gold Club, International Game Technology (IGT), Intervision Gaming, JCM Global, Konami Gaming, GTECH, Merkur, Metronia, Ortiz Gaming, Scientific Games / WMS,

TCSJohnHuxley, Video Gaming Technologies (VGT), Win Systems and Zitro. These machine, systems and technology providers will be represented by the new Mexico Committee. Carlos Carrion, Director, Sales and Operations, for Aristocrat, will chair the AGEM Mexico Committee, which will also initially include Ramiro Salazar of Bally, Agustin Nieto of GTECH, Helio Bueno of Ortiz Gaming and Adolfo de los Rios of Metronia. The individual and company composition of the AGEM Mexico Committee will be reviewed periodically. As part of this new initiative, AGEM has also retained two Mexico City-based law firms as

legal advisors – Lazcano Sámano and Portilla, Ruy-Díaz y Aguilar. “AGEM and myself personally have been very active in the Mexico market specifically for the last six years and this AGEM Mexico Committee is a natural extension of our efforts to ensure suppliers are well represented,” said AGEM Executive Director Marcus Prater. “AGEM continues to push for a solid regulatory framework and a business environment where our members can be confident in the market’s future. In our recent discussions with various influential people in Mexico, we are confident the market is now headed in a positive direction and that there is a strong need for AGEM suppliers to have their own voice in the process going forward. AGEM will also continue to work closely with the other two trade organizations in the market – APPJSAC and AIEJA.”

G3Newswire south AmeriCA NeWs

www.g3NEwswirE.com aNtigua – NEw pm agrEEs to casiNo projEct Just one day after being voted in, Antigua’s new Prime Minister, Gaston Browne has signed a Memorandum of Agreement (MOA) with Yida International Investment Antigua Ltd allowing for the construction of a US$740m project on outlying Guiana Island. Following an eight-hour long session of negotiations, Prime Minister Browne signed a Memorandum of Agreement (MOA) with Yida International Investment Antigua, paving the way for the casino investment project in Antigua and Barbuda. During the lead up to the 2014 election, which was overwhelming won by the new Antigua and Barbuda Labour Party (ABLP), Prime Minister Browne pledged to the people of Antigua and Barbuda that his administration when elected would bring tangible investments that will generate much needed economic growth for the country. “I promised the people that my administration would bring the type of investments to the country that will transform Antigua and Barbuda into an economic powerhouse and I am serious about that promise. This Memorandum of Agreement is the result of our determination to work in the interest of the people of the country,” PM Browne stated. The Memorandum of Agreement, which binds Yida International Investment Antigua Ltd., to the investment, will result in Guiana Island and surrounding lands transformed with the construction of five five-star hotels, 1,300 residential units, a casino and conference centre, a 27 hole golf course, marina and landing facilities and a commercial, retail and sports facility. chilE – gli cErtiFiEs pEr thE chilEaN staNdards With the recent release of Final Standards by the Superintendence of Casinos, Chile Regulators (SCJ), Gaming Laboratories International (GLI) is currently the only lab accredited in Chile. The company stated: “Chile is one of the most regulated markets in the Latin American region, and GLI was accredited by the SCJ in 2010. Since then GLI has been performing testing and certification for the jurisdiction per the provisional homologation process, up until the SCJ issued their final technical standards in December 2013, when the new homologation process was established. “With the enforcing of the new standards, GLI is today the only laboratory accredited to test against the Chile regulations,” it added. “GLI Latin America Division has been on the ground in Chile working very closely with the SCJ in the development of their final technical standards as consultants, and more recently concentrated its efforts by performing an onsite workshop with the SCJ. This effort ended in GLI adapting its testing process to the new technical standards and satisfying the specific requirements and needs of the jurisdiction, resulting in the successful launch of the new certification process.” Having issued the first certifications for Chile, GLI is once again ready to provide the utmost service and support to not only those within jurisdiction, but to the suppliers around the world that are looking to enter the market. Adding to the company’s efforts to support the Regulators, GLI is preparing to celebrate its VII annual Latin America Regulator’s Roundtable, taking place September 3 and 4 in Lima, Peru.

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goldEN lioN & sortis troublEs Two large scale casinos in Panama are in danger of losing their licences due to allegations concerning the attached hotels Panama - Operations Two large scale casinos in Panama are in danger of losing their licences due to allegations that the hotels attached to their premises are too small. In 1998 the government passed a wide sweeping gaming law which permitted casinos as long as they were part of five star hotel with a minimum of 300 rooms. However, according to reports emerging in the local press, two casinos have opened their doors to the public while the hotels are incomplete or have failed to meet with requirements stated by law. If proven to be true the findings could have serious repercussions on both operations involved as the key guiding principles behind Panamanian gaming laws is that casinos should attract tourists and improve tourist infrastructure. The Golden Lion hotel was granted a licence in 2009 while the Sortis casino was granted a license in 2013 – both under the Presidency of Ricardo Martinelli. However, Antonio Alfaro, the President of the Association of Gaming Administrators (ASAJA) has warned that although the hotels are not fully operational both casinos are open for business. As a result the ASAJA has filed an application for the revocation of the contract for the two casinos before the full Gambling Control

Board, chaired by the Minister of Economy and Finance, Frank De Lima. According to local daily La Prensa, there is yet to be any official word from the Panamanian Gambling Control Board on the issue although the association has requested that the Gaming Board issue an “emergency order” for the “immediate” closure of both establishments. The allegations state that the Panamanian Tourist Board has found that the Sortis hotel only has two of its nineteen floors currently in operation, while the Golden Lion has also failed to meet with a number of requirements set out by the Tourist Board when it comes to its hotel. Since the passing of the 1998 act the casino industry in Panama has grown rapidly and is now home to one of the most developed gaming industries in the entire region. The boom has coincided with Panama’s growing tourist industry and subsequent building boom the largest of its kind in the history of Latin America.

Coljuegos moving ahead with plans to connect slot machines COLOMBIA Colombia’s gaming control board Coljuegos is moving apace with its plans to connect all slot machines to a centrally controlled server. The connection of all slot machines online was first considered in 2008 when Colombia changed its gaming laws and was then passed into law in 2010. However, Colombia is the only country in the region which has legislation which allows for online monitoring of slot machines but is yet to put the law into practice.

to monitoring all slot machines online having taken these comments and suggestion into account. The move is the latest in a number of significant changes to the gaming industry, which are being pushed forward by a new gaming board aimed at increasing gaming tax revenue for the health sector and eradicating illegal gaming. While it is estimated that illegal gaming still accounts for around 20 per cent of all bets made in Colombia the legal sector has continued to grow year on year.

In March the gaming board published its findings as to how the industry would be monitored online and invited feedback from members of the industry. This was followed by a meeting in April when members of the board met discussed the issue with union officials and industry operators. During its latest meeting, held in Bogota in mid-July, Coljuegos detailed its latest findings and strategies when it comes

The industry looks set to experience continued growth over the coming years. Earlier this year, Coljuegos granted local gaming company Corredor Empresarial S.A. the right to operate Parimutuel sports betting in Colombia. The company was awarded the highest score in the public tender process, and now how the right to offer Pari-mutuel sports betting on an exclusive basis for the next five years.

Puerto Rico the government of Puerto rico lost out on an estimated us$8m between 2010 and 2013 due to its failure to apply taxes to slots operating on the island. According to statistics released by the countries internal revenue office, the government failed to collect taxes on the 3,569 slots which are licensed to operate in bars and restaurants. the oCPr found that no tax had been applied for licence fees on any of the slots from July 2010 to december 2013. the annual renewal of licences cost us$2,250 per year. As a result if all the operators had paid the corresponding licence fee then the government would have raised the sum of $8,084,250. this total is 42 per cent of total revenues (us$19.1m) which the treasury obtained for the renewal and issuance of licences from tax years, 2008-2010.

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NEw austriaN licENcEs awardEd The race for three additional casino licences in Austria has been decided after a 12 months tender period Austria - New Licences

dEr südamErikaNischE casiNobEtrEibEr drEam teilte seine Entscheidung mit, seine Bewerbung um den Betrieb eines Casinos in Chillán zurückzuziehen. Der Corporate Manager von Dream, Claudio Tessada, erklärte, dass das Unternehmen einen irregulären Prozess nicht weiter verfolgen wolle.

The Austria Ministry of Finance has awarded one of the new casino concessions in the capital Vienna to Grand Casino Wien, an international joint-venture led by Stadtcasino Baden Group, renown operator of Grand Casino Baden near Zurich and Casino Davos in Switzerland.

laut statistikEN dEr chilENischEN Aufsichtsbehörde für das Glücksspiel (SCJ) lagen die Bruttoeinkünfte der 16 chilenischen Casinos im Mai bei US $ 42,5 Mio., was im Vergleich zum April einen Anstieg um 19,1 Prozent bedeutet. Im Vergleich zum gleichen Monat des letzten Jahres stiegen die Einkünfte um 21,4 Prozent.

Stadtcasino Baden and the Gauselmann Group will create a high-class casino and entertainment project in the historical Palais Schwarzenberg, one of the most prominent baroque-style buildings in the Austrian capital. This award marks the first granting of a casino concession to an international applicant also marks the end of the 60-year-long casino monopoly in Austria.

suN iNtErNatioNal strEbt daNach, diE mEhrhEit der verbleibenden Anteile an Chiles Monticello-Casino für ca. US $ 114 Mio. zu erwerben. Sun besitzt derzeit eine Minderheitsbeteiligung am Casino. Mit diesem Deal erwirbt Sun zusätzlich zu seinem 44,2-prozentigen Anteil einen 54,7prozentigen Anteil am Monticello Grand Casino in Chile. diE associatioN oF gamiNg EquipmENt Manufacturers (AGEM) hat die Schaffung des neuen AGEM Mexico Committee in Mexico City genehmigt, das sich auf Fragen konzentrieren wird, die für den mexikanischen Markt spezifisch sind und die sich auf zahlreiche Hersteller im Bereich des Glücksspiels auswirken werden. diE auFsichtsbEhördE Für das glücksspiEl Coljuegos treibt ihre Pläne, alle Glücksspielautomaten mit einem zentral gesteuerten Server zu verbinden, mit großem Tempo voran. Die Online-Verbindung aller Glücksspielautomaten wurde zunächst 2008 in Erwägung gezogen, als Kolumbien seine Glücksspielgesetze änderte und wurde dann 2010 gesetzlich wirksam. Kolumbien ist jedoch das einzige Land in der Region, in dem eine Gesetzgebung gilt, die eine Online-Überwachung von Glücksspielautomaten erlaubt, wobei das Gesetz jedoch noch in die Praxis umgesetzt werden muss. puErto rico machtE ZwischEN 2010 uNd 2013 auf Grund des Versäumnisses, Steuern auf die Glücksspielautomaten des Landes zu erheben, einen geschätzten Verlust von US $ 8 Mio. Laut Statistiken der Finanzbehörde des Landes versäumte es der Staat für die 3.569 Glücksspielautomaten, für die eine Betriebslizenz in Bars und Restaurants gilt, Steuern zu kassieren. Die OCPR stellte fest, dass für Lizenzgebühren in Bezug auf die Glücksspielautomaten von Juli 2010 bis Dezember 2013 keinerlei Steuern erhoben wurden. aristocrat küNdigtE darübEr hiNaus diE Übernahme aller Sachwerte von Paltronics Inc. an, einschließlich produktbezogener IP. Paltronics ist Hersteller ergänzender Glücksspielprodukte und von Systemen und hat seinen Sitz in Crystal Lake, Illinois, USA. grEENtubE, EiN FührENdEr ENtwicklEr uNd Hersteller von Geschicklichkeitsspielen für das Internet, Handy, PC und iTV und seine Muttergesellschaft Novomatic Group hat Bingocams übernommen, eine der beliebtesten und innovativsten Online-Bingo-Plattformen von Dazzletag Entertainment Limited.

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The remaining two concessions have been awarded to Novomatic, a move that will create hundreds of new jobs in Austria. Novomatic will build two state-of-the-art flagship casino operations, one at the Vienna Prater and second one in Bruck an der Leitha, Lower Austria. Novomatic CEO Dr Franz Wohlfahrt stated: “The allocation of these licences now allows us to prove our international casino competencies in our home market, Austria. Apart from that it enables us to guarantee the sustained growth at the Novomatic headquarters in Gumpoldskirchen whilst creating jobs for 500 new employees.” In relation to the Grand Casino Vienna, Detlef Brose, CEO of Stadtcasino Baden AG, said: “We are more than happy about this decision but at the

same time fully aware that it is associated with a large degree of responsibility. We are committed to create a casino of international appeal that Vienna merits. “A premium casino is planned, one that can compete with international renowned top locations such as Monte Carlo. “We want to offer our guests unparalleled gaming and entertainment experience, combined with a successful mix of restaurants, bars and events. Beyond that Grand Casino Vienna will also adopt a leading approach in responsible gaming, gained on our home market in Switzerland for more than a decade.” “The Grand Casino in Palais Schwarzenberg is more than just a casino. It is the engine for an urban development project connecting the Vienna City Centre and the new Central Station, in which a total of approximately €100m will be invested,” added Hubertus Thonhauser, Chairman of the board of directors of the Grand Casino Vienna operating company. The Grand Casino Vienna will offer 28 gaming tables as well as 290 slot machines with the historical baroque-style ceremonial and representation rooms of the Palais Schwarzenberg reserved exclusively for table games. Spacious bars, lounge and smoking areas as well as a multi-functional entertainment room will complete the offer.

Greece Queenco-leisure international and Club hotel investments have announced that its flagship casino resort, Club hotel loutraki, is now for sale. the joint statement of the two companies reads that the two parties intend to sell the assets of Club hotel loutraki within the next 15 months. As part of the company’s restructuring and rationalisation of its activities, it will offer a voluntary exit program to its employees. the owners also agreed on a cash injection of €6.8m for Club hotel loutraki to continue operating until it is sold.

Evolution rolls out Danish Live Casino for Danske Licens Spil DENMARK Evolution Gaming, a specialist in video-streamed Live Dealer gaming, has launched another world first – a unique new online Live Casino for Danske Licens Spil in Denmark’s liberalised gaming market. The new service from stateowned Danske Licens Spil commenced live rollout on July 3rd with dedicated Live Roulette and Live Blackjack tables hosted at Evolution’s Malta studios. These dedicated tables sit within a stu-

dio area devoted exclusively to the Danish national gambling operator. The area features Danske Licens Spil design, décor and branding throughout, as well as dedicated teams of native speaking Danish dealers and chat moderators. The live dealer games are available on desktop initially, with access on iPhone, iPad and leading Android tablets and smartphone scheduled to go live soon. In addition to these dedicated tables, Danske Licens Spil players

will be able to access further Live Roulette and Blackjack games hosted at Evolution’s studios in Latvia, as well as Live Casino Hold’em, Mini Live Roulette and Evolution’s multi-camera Immersive Roulette. Søren Schneider, Head of Casino, Poker & Games at Danske Licens Spil, commented: “Creating a dedicated environment within Evolution’s Malta studios has allowed us to strengthen our brand online and be first to market with a 100 per cent Danish Live Casino. Also, by tapping into Evolution’s Riga studio resources we have an immensely scalable service that can flex to meet demand.”

rEscuEd group’s £10m proFits The Isle of Man’s Sefton Group, which was rescued with a controversial government loan, has posted profits of £10m

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UK - Casino Operations The Isle of Man’s Sefton Group, which was rescued last year thanks to a controversial government loan, has posted profits of £10m. The Sefton Group is a Manx company that owns the Sefton and the Palace Hotel Casino on Douglas promenade, along with the Sefton Express hotel near Ronaldsway airport. An employer of 340 people and a supporter of 150 local companies, in April 2013 the Sefton Group received a government rescue package of £4.5m including a £1.3m loan, plus £3.2m to buy development land in Douglas. When scrutinised by independent lawyers the deal was later found to have been made “outside of government powers”. It was also heavily criticised by other hotel owners for creating “a biased and dysfunctional commercial environment, with unfair competition”. At the time of the loan the hotel/casino group was facing debts of around £1.7m, with much of the debt owed to local businesses on the island. The Manx government said the funds had been granted under the Enterprise Act, which provided the

group with a loan of £1.3m repayable after five years. When details of the arrangements were made public, politicians objected on the grounds that it put other hotel owners at a commercial disadvantage. Sefton chairman Miles Walker told local press that the profits posted by the group “justify the intervention”. He added: “Bearing in mind that the Sefton Group is the employer of 340 people, the customer of 150 local companies and is owned predominantly by 550 local shareholders, the government deserves plaudits, not brickbats for supporting such a key player in the Isle of Man economy.” However, such has been the fallout from the granting of the loan that the Manx economic development minister, John Shimmin, was forced to resign over the issue at the end of June.

Slovenia ministry of finance of slovenia has appointed Gli europe Bv as “an institution for issuing gaming device test reports for the jurisdiction of slovenia.” Gli europe Bv is privileged to be the first foreign company to be permitted to provide these services. Gli europe managing director martin Britton said, “this has been a strategic project allowing Gli to issue gaming device test reports directly to the regulator for this market, saving time and cost to the client, while being able to provide onsite services within slovenia. it is a great achievement for Gli, which also benefits our clients. We are thankful to the ministry for the trust they have placed in Gli.”

Further acquisitions for Greentube with Bingocams AUSTRIA Greentube, a leading developer and provider of skill games for internet, mobile, PC and iTV and its parent company, the Novomatic Group, has acquired Bingocams, one of the most popular and innovative online bingo platforms, from Dazzletag Entertainment Limited. The Bingocams integrated web platform combines online bingo with social media and video. Players can engage each other via two or three person private webcam chats during game play, thereby re-establishing the traditional social element of live, inperson bingo. “Bingocams is a welcome addition to the Greentube line of

iGaming solutions,” said Thomas Graf, CEO of Greentube. “This acquisition marks another major step forward for Greentube and further enhances Novomatic’s position of significance within the ever expanding new world of online gaming.” Dazzletag revolutionised the online bingo industry when they introduced their no-download

Bingocams application. The platform offers players a wide range of bingo games in a friendly, interpersonal environment that includes live chat among players and live chat with hosts. In addition, Bingocams offers a patented Live Win Moment that provides a visual playing experience that captures the social spirit of live bingo. “This is a very exciting day for Dazzletag Entertainment and we are delighted to join the Novomatic Group of Companies,” said Marin Muyser, Managing Director of Bingocams. “We believe there is a substantial opportunity to leverage our existing business now that we are part of the world’s leading gaming company. We have always aimed to roll out our unique bingo software internationally and with Novomatic’s/Greentube’s global presence we will be able to accelerate this strategy substantially.”

um diE spiElkapaZität Zu ErhöhEN, iNstalliErtE das Alea Casino in Glasgow ein neues i-Table-Roulette von Bally Technologies mit sieben Spielpositionen, ein Fusion Hybrid mit 16 Positionen sowie ein Dealer-Terminal. Spieler können über den Fusion Live Video-Link unter vier verschiedenen Roulettekesseln auswählen, die über das Casino verteilt sind. iNtErNatioNal gamE tEchNology unterzeichnete einen Vertrag mit DLV über die Installierung von IGTSystemen in 50 Spielhallen; dadurch werden in den nächsten zwei Jahren etwa 1.000 Automaten an zahlreichen Standorten in ganz Lettland miteinander verbunden. diE associatioN oF gamiNg EquipmENt Manufacturers (AGEM) bewilligte die Mitgliedschaftsanträge von neun neuen Unternehmen. Damit hat die Handelsgruppe, bestehend aus den weltweit größten Herstellern von Glücksspielzubehör, insgesamt 141 Mitglieder. gamiNg partNErs iNtErNatioNal hat diE Übernahme der GemGroup für US $ 19,75 Mio. perfekt gemacht. Gregory Gronau, Präsident und CEO bei GPIC, sagte: „Wir sind erfreut mitteilen zu können, dass die erfolgreiche Übernahme der GemGroup mit ihren bekannten Spieleprodukten der Marke Gemaco abgeschlossen werden konnte.” diE italiENischE gtEch s.p.a. hat EiNEN definitiven Fusionsvertrag mit International Game Technology, einem Unternehmen mit Sitz in Las Vegas, Nevada, geschlossen. Gemäß den Bedingungen der Transaktion werden IGT und GTECH unter einer neu gegründeten HoldingGesellschaft (NewCo) im Vereinigten Königreich zusammenkommen. Der Gesamtwert der Transaktion beträgt ca. $ 6,4 Mrd., inklusive der angenommenen ca. $ 1,75 Mrd. an bestehenden Nettoverbindlichkeiten von IGT. aristocrat stEht vor dEm kauF dEr us-gruppE Video Gaming Technologies. Der Wert des Deals beträgt $ US 1,3Mrd. und führt zu einer größeren Präsenz von Aristocrat am wichtigsten Casinomarkt für Stammesangehörige in den USA. Das Bargeschäft, bei dem Aristocrat außerdem seine Kreditfazilitäten in einem neuen Paket von Verbindlichkeiten in Höhe von $ 1,4 Mrd. refinanzieren wird, soll bis Ende der ersten Hälfte 2015 abgeschlossen werden. dEr australischE staat NEw south walEs hat James Packers Crown Resorts eine Lizenz für ein integriertes, 6-Sterne Luxusressort-Projekt in Sydney erteilt, das zweite Casino des Unternehmens in dieser Stadt. Crown zahlt A$ 100 Mio. (US $ 94 Mio.) für die 99-Jahre-Lizenz, die ebenso eine Reihe anderer Bedingungen beinhaltet, wie z. B. minimale Steuereinnahmen für den Staat. das östErrEichischE FiNaNZmiNistErium hat eine der neuen Casinokonzessionen in der Hauptstadt Wien an das Grand Casino Wien vergeben, ein internationales JointVenture unter der Führung des Stadtcasino Baden Group, renommierter Betreiber des Grand Casino Baden in der Nähe von Zürich und des Casinos Davos in der Schweiz. Die beiden verbleibenden Konzessionen gingen an Novomatic, was Hunderte neuer Jobs in Österreich schaffen wird. Novomatic wird zwei ultramoderne Casinos bauen, eines am Wiener Prater und eines im niederösterreichischen Bruck an der Leitha.

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alEa opts For i-tablE aNd FusioN The Alea Casino in Glasgow has installed the latest Fusion multi-player terminal solutions from Bally Technologies UK - Installtions

uk – sg gamiNg ExtENds jENNiNgsbEt dEal SG Gaming has extended its agreement with JenningsBet, the independent bookmaker. The four-year deal lengthens the 14-year partnership between the two companies until July 2018. As part of the extension, the entire JenningsBet estate will receive SG Gaming’s Infinity terminals, which offers JenningsBet customers an enhanced playing experience through its 21.5” HD screen, an upgraded sound system, and an interactive video button panel. SG Gaming was the first machines provider to introduce a video button panel into the UK Licensed Betting Office sector two years ago. The ongoing partnership means JenningsBet will continue to offer customers access to content developed by SG Gaming’s in-house development team, as well as new titles from its sister company, WMS Gaming, ultimately providing customers a leading gaming machine offer. The SG Connect division of SG Gaming, a field-based services division which provides end-to-end support service, will continue to provide self-service betting terminals to the JenningsBet estate. Greg Knight, Managing Director of JenningsBet, said, “Our partnership with SG Gaming has been important to the growth and success of JenningsBet over the past 14 years. SG Gaming has always been our machine provider of choice – not just because of our long standing relationship, but also because of their content, titles and cabinet selection.” Phil Horne, Group Managing Director of SG Gaming UK, said, “I am thrilled that we will continue to work with JenningsBet over the coming years. The partnership has been a success because we have established a terrific mutual understanding, which enables us to deliver first-class content and terminals to the JenningsBet estate.” uk – NEw Novomatic cEo Harald Neumann is to replace Franz Wohlfarht as Novomatic Group CEO. Mr. Neumann (52), who for the last three years has been involved in major investments and international projects for the Novomatic Group, will be appointed to his new position on October 1. He succeeds Franz Wohlfahrt (54), who is retiring at his own request after 10 years as CEO at the end of September. uk – NEw william hill cEo William Hill has appointed James Henderson as Chief Executive Officer of the group, effective from August 1 2014. Mr. Henderson has been with the group for 29 years and is currently Group Director, Operations, with oversight for the UK Retail business, Online, William Hill Australia and William Hill US. He will take over as Chief Executive from Ralph Topping who is standing down on 31 July 2014 after 44 years with the Group and six as CEO. Gareth Davis, Chairman, commented: “The Board is delighted to appoint James Henderson to the CEO role. His breadth of knowledge spans the whole Group, having worked in both the major divisions, overseen the establishment of William Hill US and, most recently, taken responsibility for William Hill Australia.

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In a move to increase playing capacity, the Alea Casino in Glasgow has installed a new Bally Technologies’ i-Table roulette wheel with seven playing positions, a 16-position Fusion Hybrid, dealer terminal and the ability for the player to choose from four different wheels located throughout the casino via the Fusion Live video link. This complex project was completed in less than a week, ready to open for a busy Saturday evening. We talk with Des Joseph, Field Service Engineer from maintenance and installation experts E-Service, about how they were able to complete the project during this short time period. “Managing such a large installation requires careful planning weeks in advance to ensure all the equipment, resources and transport arrangements are in place at the right time”, said Des. “The casino market is global and equipment is manufactured throughout the world. Even so, we arranged for all the products to arrive just in time, keeping storage, handling costs and disruption to the casino and players to a minimum.” The main delivery to the casino arrived at 8 a.m. on Monday morning, having been pre-assembled and tested in Australia. This included 16 terminals, one i-Table Roulette, one Fusion Hybrid dealer terminal, an automatic Slingshot wheel and four crates of peripherals such as cables, cameras and infills for cabinets. To prepare for installation, the existing 8-year-old system was taken out, the area was cleaned and new Cat 5 cables were installed. “Preparing the area for installation is always critical”, says Des. “Terminals and power supplies need to be in the right place and all cables are

carefully labelled and double checked. To accommodate new wiring, we cut channels and fit ductwork. This is all completed behind screens whilst the casino remains open, so we have become very skilled at keeping the noise down!” The complexity of the project means working long hours and once installed, a clear head is then needed for the equipment to be made operational. Every unit was commissioned according to Alea Casino’s own requirements. This involves setting up the central computer and camera feeds, calibrating wheel speed and timing by adjusting the Cammegh slingshot mechanisms, linking Ticket In/Ticket Out mechanisms to the control system and undertaking thorough testing. After several weeks of planning and one week of hard graft for the highly skilled engineers, the new electronic tables are now working effectively to generate extra income for the Alea Casino, part of London Clubs International. This is the latest in a series of Bally Technologies equipment upgrades which have been installed on time and within budget by E-Service, Bally’s approved maintenance partner for automatic card shufflers, chip sorters and e-table equipment in casinos throughout the UK.

IGT signs systems deal at 50 Latvian slot halls with DLV LATVIA International Game Technology has signed an agreement with DLV to install IGT systems in 50 slot halls connecting approximately 1,000 machines in locations throughout Latvia over the next two years. With first installations scheduled for July of this year, DLV plans to leverage IGT Casinolink, Medialink and EZ Pay systems to maximise efficiency and player engagement through improved accounting with jackpot and player management technologies. The agreement also marks

the introduction of the IGT Xtra Credit systems module to the European market, which should enable easy deployment of promotional awards while increasing play time. “This significant systems installation throughout multiple DLV properties in Latvia provides an excellent example of IGT’s position as a global leader in widearea casino management systems deployments,” said Ian Baynes, Regional Vice President – Europe, Middle East & Africa at IGT. “Other vendors have tried, but were not able to deliver the

comprehensive technology and quality that should enable DLV to dramatically enhance its patron offerings while greatly improving its operating efficiencies and control.” “We selected IGT systems because Casinolink provides a proven multi-site modular system that offers DLV enhanced management controls and the ability to offer our players the very best promotions and bonuses which in turn should drive more play,” said Mihails Volokotkins Chairman and Founder at DLV. “We also value our great relationship with IGT and look forward to working together and introducing further exciting innovations together in Latvia.”

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Brewing giant SABMiller is to dispose of its shareholding in Tsogo Sun through institutional placing and a buy back. South Africa - Casino Operations

uk – iNspirEd partNErs with gamEs lEgENd Inspired Gaming Group (Inspired) has announced a game development partnership with Ian Livingstone. Ian Livingstone is one of the founding fathers of the UK games industry. As co-founder of Games Workshop he launched Dungeons & Dragons in Europe. He co-authored the multimillion selling Fighting Fantasy gamebook series and has launched many international blockbuster video games. Luke Alvarez, Founder and CEO of Inspired, commented: “I am both personally and professionally excited to be working with Ian Livingstone. Convergence is a key trend in our industry at the moment. Our partnership will uniquely focus on leveraging the convergence between console gaming, mobile and gambling. We have some great ideas in the pipeline and we look forward to launching these hit games together.” Ian Livingstone, added: “The vision and ambition of Luke and his team at Inspired is impressive. This is a new design challenge for me, and I’m looking forward to collaborating with Inspired on new projects, applying video game mechanics and gameplay to server-based gaming products.” portugal - jcm global thE wiNNEr iN Estoril The winning ways continue for JCM Global across Europe, particularly in Portugal, where another casino has named JCM its preferred bill validator supplier. Today, Casino Estoril awarded the preferred distinction to JCM, the gaming industry’s leading transaction technologies supplier. The honor comes less than a month after another Portuguese casino named JCM its preferred supplier. Specifically, Casino Estoril named JCM’s award-winning iVIZION as its preferred bill validator, adding to the growing list of casinos in Portugal, across Europe and worldwide that have named iVIZION their preferred bill validator. Casino Estoril has been a JCM customer since 1997, and have benefitted from the security and speed of JCM’s landmark WBA and UBA products. After a three-month test, the casino has decided to evolve the floor with the better, smarter, faster iVIZION. Mr. Choi Man Hin, Chairman of Executive Committee of Casino Estoril, said, “We have worked with JCM for many years and have always been pleased with the quality of products and service. During our three-month trial with iVIZION, we were impressed with its very high quality, fast first-time acceptance rate, and we had no technical problems. We are happy name iVIZION our preferred validator product.” “iVIZION continues to impress operators around the world, and we are very happy to welcome Casino Estoril to the iVIZION family of customers. iVIZION has set a new global standard for acceptance and security, and as the foundation of intelligent validation, iVIZION is a product casinos can buy with confidence,” said JCM’s Payam Zadeh.

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The Tsogo Sun Hotel portfolio comprises 90 hotels, with 14,316 rooms, and 14 casinos. On April 15 2014, SABMiller announced that it was conducting a strategic review of its investment in JSE-listed gaming, hotel and entertainment group Tsogo Sun Holdings Limited SABMiller currently has an effective 39.6 per cent shareholding in Tsogo Sun valued at approximately ZAR11.7bn (approximately US$1,089m) based on the closing share price of ZAR26.90 on 4 July 2014. SABMiller, in co-operation with Tsogo Sun, has now completed its strategic review and has decided to dispose of up to all of its ordinary shares in Tsogo Sun through two conditional transactions: firstly a fully marketed secondary placing of up to approximately 305 million Ordinary Shares to selected South African and international institutional investors and secondly a buy back by Tsogo Sun of at least approximately 130m Ordinary Shares for an aggregate consideration of ZAR2.8bn (approximately US$260m). Alan Clark, Chief Executive of SABMiller said: “SABMiller has been a supportive shareholder of Tsogo Sun since 2002, when we transferred our existing gaming and hotel assets into Tsogo Sun as

part of a landmark Black Economic Empowerment transaction. The business has performed well over the years. The merger with Gold Reef Resorts in 2011, and the resultant listing on the JSE, has transformed Tsogo Sun. However, gaming and hotels are not core to our operations and we have concluded that the time is right for us to exit our investment through a transaction which is beneficial to shareholders of both SABMiller and Tsogo Sun and to reinvest the proceeds in our core growth businesses, including our African operations.” Tsogo Sun’s management will commence a roadshow to meet selected institutional investors in South Africa and internationally. The board of directors of Tsogo Sun believes that the Repurchase represents a unique and attractive opportunity for Tsogo Sun to repurchase and cancel a significant number of Ordinary Shares on terms that are expected to have a positive impact on the company’s earnings per Ordinary Share and its black economic empowerment shareholding. The board of directors of SABMiller believes that the Repurchase will provide SABMiller with certainty over the disposal of approximately 30 per cent of its shareholding.

UK the ritz casino in london has been taken to court by the wife of an omani politician who lost £2m in one evening for allegedly ‘taking advantage’ of her gambling addiction. Nora Al-daher, 50, claims that staff at the ritz were aware of her gambling problem but actively encouraged her to keep playing on the club’s punto banco table for hours in April 2012. she claims the ritz should have stopped her playing but instead extended her credit facility. the ritz had taken legal action against mrs Al-daher chasing £1m that had not been honoured. ritz Chief executive roger maris added: “she was a very good customer for us. there had been a very good history of paying. there was no thought in our mind that the cheques were not going to get paid.” during 1999 and April 2012, the ritz received more than £20m in buy-ins from mrs Al-daher.

from entering a casino and allow for court orders to ban individuals whose gambling can be shown to cause financial hardship to their families.

The potential impact of the new gambling-related legislation is not straightforward, given that gaming has become a significant source of revenue for the government. In 2013, Armenia’s state budget received “7-8 billion drams” ($16.9 - $19.3 million) in tax revenues and license fees from Armenian gambling establishments.

A third measure would allow casinos to deny entrance to individuals at the gamblers’ own request. Restrictions could last from six months to three years, and would apply to all casinos in Armenia. The amendments are expected to be submitted to parliament’s Economic Affairs Committee for discussion during the National Assembly’s next session.

The representative of one casino, however, expressed approval of the proposed changes. “In many countries, visiting a casino is entertainment, while in Armenia, and perhaps the whole Caucasus, it is linked with passion [for a better life] and gambling [to earn a living],” said the individual, who requested anonymity. “People will be more protected if there is relevant legislation.”

Armenia seeks to adopt new slots legislation to curb gaming ARMENIA Ten casinos and 100 gaming parlors now exist in Yerevan’s outskirts One of the biggest, Shangri-La, “The number of gamblers has increased 10 times during the past five years,” estimated Samvel Khudoian, a professor of psychology at Armenian State Pedagogical University Two Armenian MPs are seeking to pass legislation that would restrict access to casinos. A set of proposed amendments to Armenia’s gambling law would ban people under the age of 21

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athENs airport rEsort vENturE A consortium has bought a huge area of Athens waterfront with plans to develop the area into a massive luxury resort Greece - New Licences Plans have been announced to create a worldclass resort at the former Athens airport of Hellinikon, which could be bring $5.4bn to the Greek economy. Situated eight kilometres south of Athens, Hellinikon and an adjoining 337-berth marina span nearly 620 hectares and includes a waterfront of about 3.5km. A consortium comprised of Lamda, China’s Fosun Group and AbuDhabi property firm Al Maabar in March were awarded a 99-year lease for Hellinikon for €915m in March of this year. The consortium has pledged to invest €5.9bn over the next 15 years to create parks, leisure, exhibition and concert facilities, hotels and luxury residences at the site. The developers say the project will benefit adjoining municipalities, but not all residents share that view, particularly as the plans include a casino. The deal is still subject to Russia futurelogic has been chosen as the preferred supplier of tito printers by all casinos operating in the Azov City, Gaming Zone in russia. All three casinos in Azov City’s gaming zone; Casino shambala, Casino Nirvana and oracul Casino, have signed long term agreements specifying futurelogic’s GeN2 printer for all their existing, new and future slot machines. timur Permiakov, director of strategic development for royal time Group, which operates oracul Casino, said: “futurelogic’s GeN2 universal was an obvious choice for printing tito tickets and promotional coupons in our casino.”

approval from Greece’s administrative court and parliament. Eventually, the developers hope to attract a million tourists to the area annually. “This is a major opportunity for Athens to create a truly worldclass resort,” said Russell Kett, Chairman of London-based tourism analysts HVS. “We envisage a major integrated resort, the first of its kind in Europe,” he said. Overall, the Greek state has two years in which to complete the cumbersome land permit procedure or the investors are free to walk away. The developers had hoped to commence building this year, it’s more likely in 2016. Hellinikon was turned into a sports complex for the 2004 Olympics, but most of the venues built for the Games have rarely been used since. Lamda Development is operated by the shipping magnate Latsis family. The company has built Greece’s largest shopping centre and created the media village for the Olympic Games. It also rebuilt and runs one of the capital’s main marinas south of Athens.

Holland Casino for sale and new licences open for competitors HOLLAND The Netherlands government has agreed to split up and sell its staterun casino monopoly Holland Casino. Junior Justice Minister Fred Teeven stated that 10 of the 14 branches will be sold under their current name while the other four locations will be sold individually. The cabinet is also planning to open up the casino market to new providers from 2017 – with two licences up for grabs. That will bring the total number of casinos in the Netherlands to 16, owned by seven different companies. Holland Casino is currently in financial trouble due to declining visitor numbers. All potential new owners will have to maintain the

same strict anti-gambling policy as Holland Casino currently operates, Mr. Teeven said. Ministers have also reached agreement on deregulating internet gambling, which is currently illegal in the Netherlands unless run by the state monopoly. According to the Financieele Dagblad, the market will be opened up in 2015. Companies will have to apply for a licence and meet rules on preventing gambling addiction. They will also have to pay gambling tax of 20 per cent, contribute 0.5 per cent of turnover to a gambling prevention fund and 1.5 per cent to the gaming authority. Lotteries will also be opened up on condition that 40 per cent of profits go to good causes.

The first HTML5 game launched under the new partnership is White Knight, with more games such as Goddess of the Amazon due to be released during the course of 2014. Luke Alvarez, CEO of Inspired, said: “William Hill is a leader in online betting and gaming, and we are delighted to be expanding our game portfolio to their online and mobile players. Cross channel convergence is a key philosophy of Inspired’s global expansion strategy and White Knight is the first of many exciting HTML5 Inspired games to be released to William Hill’s mobile gaming platform in the coming year. Inspired’s mobile games currently support iOS and Android devices and will be available on Windows devices soon.” Inspired also has further enhanced its Remote Gaming Server (RGS), Virgo, which now allows the company to offer white label services to its clients. Inspired will be launching six new HTML5 games via its Virgo RGS in 2014. gErmaNy - martiN joiNs gausElmaNN board Alexander Martin will assume responsibility as new Gauselmann AG director for the business segment ‘New Media’ from July 1 onwards. Gauselmann Chairman Paul Gauselmann said: “We made the decision to create a separate management board position here due to the continually increasing importance of internet gaming in society and also within the company. We are very pleased that we have been able to gain a proven expert for our company in Mr. Martin. His ideas and driving force will complement the management board in as many areas as possible, making these even more futureproof with his energetic contribution.” gErmaNy - gtEch providEs For wEstlotto GTECH has signed a two-year agreement with the Westdeutsche Lotterie GmbH & Co. OHG (WestLotto) in Germany. The contract awards GTECH as the primary provider of instant-ticket printing and related services to the Lottery. Under the agreement, GTECH will continue printing instant-tickets for WestLotto. Moreover, GTECH will continue consulting WestLotto in business intelligence, marketing, game planning and strategy, through May 29, 2016. GTECH has been the primary supplier of instant-ticket printing services to WestLotto since 2010. "The German market is very important to GTECH, and we are proud to be a key instant-ticket provider to the largest lottery operator in the country,” said Alan Eland, GTECH Senior Vice President and Chief Operating Officer, North America, who also oversees GTECH’s printing operations. “This contract is a direct result of GTECH’s dedication to supporting the growth of WestLotto’s business over the past four years. We will continue to focus on this market by offering an extensive portfolio of solutions that will help drive the Lottery’s instant-ticket business.”

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irElaNd - tradologic powErs boylEsports TRADOLOGIC recently signed a strategic agreement with Ireland’s largest independent bookmaker, Boylesports. As part of the deal, TRADOLOGIC will deliver the necessary technology to add binary betting to Boylesports existing services. Boylesports is Ireland’s largest independent bookmaker and online betting company, which offers a state of the art online sports betting, poker, casino and bingo gaming experience. The company has recently decided to add financial binary betting to their offering via widget integration. To do this Boylesports turned to TRADOLOGIC due to its innovative and stable software. Boylesports will integrate TRADOLOGIC’s widgets into its current site with TRADOLOGIC providing a wide selection of cutting-edge widgets ready to be implemented within the client website. One of the many advantages of these widgets is the simple integration process. Moreover, TRADOLOGIC possesses a vast knowledge of the binary option industry and shares its binary insights to ensure its clients succeed in providing the best services to the players as possible. TRADOLOGIC’s founder and CEO Ilan Tzorya comments on this new partnership: “It is a pleasure for us to partner with a company that is at the forefront of the gaming industry. TRADOLOGIC’s technology will enable Boylesports to diversify their offering and expand to new markets. We believe in the success of this partnership that will further strengthen TRADOLOGIC’s position as a leading software provider.” Boylesports’ CEO John Boyle added: “We are pleased to complete our agreement with TRADOLOGIC. With the stable, innovative technology they offer, we can provide our players with products that absolutely meet their needs and deliver a unique gaming experience. Having this reliable technology will increase our customers’ satisfaction and loyalty.” uk - NEw tEam at gamEaccouNt NEtwork GameAccount Network has underlined its ambitious growth plans by installing a new commercial team that combines a strong academic background with experience gained from both within and outside the gaming sector. Led by Commercial Director Daniel Lindsay, who joined GameAccount in September 2013, the new team comprises; Sara Di Finizio ,Country Manager Italy, alongside Commercial Managers Federica Faggiano and Camilla Folkeson. Underlining the strength of the team, Daniel Lindsay said: “We have recruited from a variety of backgounds in order to achieve a complementary balance of experience and skill sets. Sara Di Finizio, our Country Manager Italy, has a background in technology and marketing and is a graduate in Marketing Communications working from Rome. “Federica holds a Bachelors degree in Foreign Lanugauges, Economics, Tourism and Communications and is responsible for managing existing regulated .com accounts and ensuring our operating partners can deploy the very latest range of content from the extensive list of slot providers in the GameAccount portfolio. "Camilla holds a Masters degree in Marketing & Business Administration and is responsible for driving overall business development outside of North America including the roll out of GameAccount’s unique Simulated Gaming products to land based operators. She joins from a Swedish eGaming operator where she had overall responsibility for marketing.”

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Casino Bad Homburg’s recent casino renovation has added a new twist for lovers of electronic roulette. Back in August 2013, casino management made the bold decision to install the G4 Organic Roulette from Slovenia’s Interblock. Players can now choose from a total of 23 Playstations with two electronic wheels ( including Swarowski crystals), with the Interblock G4 Organic connected to two roulette tables from the classical table gaming room, enabling them to choose from four roulette wheels, while five 55ins. LCD monitors provide all the key statistics. Lutz Schenkel, Managing Director at Casino Bad Homburg, is very pleased with the installation, explaining: “Introducing a new brand to players can always be a risk, but the opportunities strongly outweighed the potential risks and we are proven right in our decision day after day. The completely different design has drawn in new players to us, especially younger people and females. We have seen the demand for electronic roulette rise with the Interblock unit. We are very pleased with its performance.” Spirit Gaming is the exclusive distributor and service partner for Interblock in Germany, Austria, Switzerland and Luxembourg. Torben

Lutz Schenkel , MD of Casino Bad Homburg. Kreienbrock, Sales Manager, notes on the increasing demand for Interblock in Germany. “We have proven that innovation and design alongside optimal service will convince casino operators in Germany to move to newer, better solutions. We thank the Bad Homburg casino management for their open-mindedness to embrace Interblock G4 Organic. This endorsement speaks volumes for the fact that moving to Interblock can attract new players and thus increase revenue.”

Research shows ICE is 'world's favourite gaming exhibition' UK Despite the difficulties caused by a London-wide transport strike, ICE Totally Gaming 2014 attracted attendees from a record 156 nations, a statistic which puts the world's biggest gaming event amongst the elite of UK-hosted exhibitions. The figure, part of a comprehensive external audit commissioned by ICE, underlines the brand's status as the only truly global event at which exhibitors can engage with buyers from every conceivable gaming jurisdiction. Portfolio Director Kate Chambers said: "I think these stats show that ICE is most definitely the world's favourite gaming exhibition! We worked hard on our communications campaign and once again raised the bar in terms of the resource and the investment we allocate to attracting buyers to ICE Totally Gaming. The spread of attendees

in 2014 stretched from Belarus to Brazil, Cambodia to Curacao and Vietnam to Venezuela, clear and compelling evidence of the reach of our marketing which engaged directly with over 200,000 potential visitors, featured adverts in 90 print and digital media channels and also included a social media campaign." She added: "Our task now is to develop further the international appeal of ICE Totally Gaming and in the process deliver another vintage edition at our home in ExCeL London. Following the announcement that IMA 2015 is being postponed, we look forward to hosting large numbers of German gaming operators as we did in similar circumstances in 2013. Buoyed by the experience of 2014 the entire ICE team is focused on delivering another successful blockbuster event for all sectors of the international gaming industry."

UK stage one of the application process for a large casino licence in southampton has now closed with five operators interested in a total of seven competing sites. Applications at this stage included basic information about the applicant and the proposed site for a casino. A total of seven applications have been received by southampton City Council for the final large casino licence in the uK, the largest number of any authority. the applicants and sites are Grosvenor at royal Pier, Grosvenor at leisureWorld, Global Gaming ventures at West Quay Watermark, Global Gaming ventures at royal Pier, Kymeira Casino at royal Pier, Genting Casinos at royal Pier and Aspers Casinos at royal Pier.

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the true CoNverGeNCe of the CAsiNo GAmiNG floor Casino Campione d’Italia is utilising Evolution Gaming’s in-venue studio to present its unique land-based casino experience, live on the Internet Land-based gaming comprises the largest portion of the gaming sector in the Italian market, accounting for 95 per cent of all revenues from gaming. Having restricted its online market to Italian-only players, both online gaming suppliers and land-based operators are seeking new avenues into the gaming market in Italy. Speaking to Gionata La Torre, VP Business Development and CEO Italy at Evolution Gaming, he explained that in the last 18 months Evolution has received multiple enquiries and interest from land-based casinos regarding its online live casino solution. "In the past, these enquiries were practically non-existent," said Mr. La Torre. "Land-based operators have viewed online gaming as a threat, which is cannibalising their land-based players. The shift in opinion, however, has been significant and the catalyst has been 'innovation by legislation.' If you look at a market such as New Jersey in the US, or Spain in Europe, legislation has been used to protect land-based businesses. In Spain and New Jersey, legislation ensures that online live casino gaming must take place from a physical casino." To offer online live casino gaming in a market such as Spain, legislation dictates that operators cannot offer players remote studio-based gaming, but rather play must take place in a physical licensed gaming location. 'Innovation by legislation,' as described by Mr. La Torre, is the progression of a market through legal constraints, which in turn drives progress through the necessity to innovate. While the vast majority of Evolution clients are happily served by remote studio-based solutions, the success of the 'in-venue' studio in Spain has attracted the attention of operators in markets unconstrained by legislative requirements. The Italian casino market can only offer services to Italian players, but operators can utilise off-site studios to deliver an online live casino experience. However, Casino Campione has 2 2

Carlo Pagan, General Manager, Casino Campione d’Italia

“We have a truly world-class venue here, from which we are committed to delivering a truly world-class multichannel Live Casino service. We want our players to be able to enjoy the unique Casinó Campione d’Italia experience when they visit in-person and also on their computers, tablets and smartphones when they are maybe hundreds or thousands of miles away.” sought to attract even greater visitor numbers to its Lake Lugano location, by streaming a comprehensive online Live Casino service in real time from the in-venue studio. Explaining his strategic vision, Carlo Pagan, CEO of Casinó Campione d’Italia and European Casino Association (ECA) Board Member, said: “We have a truly world-class venue here, from which we are committed to delivering a truly world-class multi-channel Live Casino service. We want our players to be able to enjoy the unique Casinó Campione d’Italia experience when they visit inperson and also on their computers, tablets and smartphones when they are maybe hundreds or thousands of miles away.” He added, “Just as importantly, we see Live Casino as a key strategic tool and marketing channel with which to attract new demographics to our core business, the land-based venue. This is about online and offline working very much hand in hand to drive incremental revenue.”

“For a land-based casino to venture online and offer the same product as everyone else is unthinkable. Not only do they have an established brand, but physical tables and staff in an existing location.” Evolution has provided Italy's Campione Casino with an online gaming offering tied to its own casino floor utilising the live real-time feed from Evolution. The live studio, which is showcased on the slots floor, comprises three Live Casino tables –Roulette, Blackjack and Baccarat. Staffed by a dedicated team of dealers and pitbosses, the tables offer online Live Dealer gaming to existing and new Italian customers. Space has also been allocated on the floor for a fourth Live Casino table, likely to feature an additional card-based game. Casinó Campione is also harnessing generic tables, located at Evolution’s central Live Casino production studios in Riga and Malta, to provide extended choice for players. These 24/7 shared tables, which went live in early June, have already given players a taste of the new online services available from Casinó Campione. "If you look at the online gaming marketplace, pretty much everyone is offering players the same things," comments Mr. La Torre. "For a landbased casino to venture online and offer the same product as everyone else is unthinkable. Not only do they have an established brand, but physical tables and staff in an existing location. Most importantly, a very identifiable physical location, which is their major point of differentiation. Land-based locations can leverage both their existing clients and physical location to offer something unique. While purely online brands offer little differentiation beyond their website, land-based has everything it needs to provide a great online live casino experience for its players." Working with Campione, one of Europe's largest and most prestigious casinos, Evolution has seen the shifting attitudes of land-based casinos towards online gaming. Casino Campione has combined the opportunities and unique qualities that physical locations bring to the online sector, with the online live casino environment. Here,

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the convergence often spoken about in gaming conferences is actually taking place on gaming floors and across Internet connections in Europe. The shadow cast by the prospect of cannibalisation still remains, but early figures revealed from New Jersey have shown that operators such as Caesars are seeing 80 per cent of online play from un-registered land-based players. Meanwhile, land-based players who played online increased their wagers significantly. According to Mr. La Torre, the land-based sector is recognising the potential and differentiation that online live casino offers. "It is a different target, it is not about cannibalisation," states Mr. La Torre. "If you consider Campione's target market in the north, how many times can a player from Milan visit the casino in a month? If you live in the south, would you make the trip to Campione at all? If you've never been to a casino before, how do you experience the location

“It is a different target, it is not about cannibalisation. If you consider Campione's target market in the north, how many times can a player from Milan visit the casino in a month? If you live in the south, would you make the trip to Campione at all? If you've never been to a casino before, how do you experience the location without making a journey into the unknown?” Gionata La Torre, Evolution Italy

without making a journey into the unknown? Having the opportunity of playing online and yet at the same time playing 'within' the casino itself means that I can experience this casino for myself online, and I can do this while maintaining the same level of trust and confidence that I have with land-based locations."

If you've never experienced a land-based casino before, exploring its gaming offering online is one step towards making the transition to playing in a live location. Campione is taking this a stage further by creating the same environment, the same dealers both online and within its landbased offer. Tutorials are offered online that allow players to understand the games as they are dealt to provide a totally non-intimidating game, making sure that the player gets the most from the experience and at the same time complying with responsible gaming legislation. Campione's choice to establish a physical 'online' environment on its gaming floor is not something that smaller locations could replicate easily, but it's certainly a first-mover advantage in a tightly regulated market where the difference from one competitor to the next is slight. As Mr. La Torre points out, in creating Campione's unique offer online, the ability of land-based locations to really project their character, to inform players of the different promotions, player incentives and 2 3

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Gionata La Torre, VP Business Development and CEO Italy, Evolution Gaming

unique atmosphere in an online space, means that land-based casinos aren't playing secondfiddle to big budget branded online casinos, but are instead able to show what makes playing on a live casino floor such a special experience.

whereby there's an aligned studio on the main floor, where the physical player cannot interact with the online tables at the casino and where they cannot make a physical bet (though they can place bets on their mobile phone).

"If every land-based casino took their gaming floor online, where the online brands struggle to offer real differentiation, land-based locations by their very nature can offer unique experiences," describes Mr. La Torre. "This is one of the advantages that land-based can use in the online space. If you arrive late into a competition, you have to use all the tools at your disposal, and the best opportunity for land-based casinos to really go online with meaning, is to offer their live casino experience as part of an online solution for players."

"There are pros and cons to both methods," describes Mr. La Torre. "If you go down the dual play route, you save some money by utilising the same tables and the same square meters, while effectively doubling revenue with the same dealer. On the other hand, doing something like this, in my opinion, sacrifices the online experience. The dealer cannot interact with the online player; the camera shot is from a single perspective and can only be from the above. You then encounter problems with privacy, whereby you must display a disclaimer at all times. So the risk is that the table will not be crowded by physical players."

Since only Italian citizens holding a passport can play online with Campione, it's a restriction that means that Campione can't draw upon its advantageous physical location close to many borders. However, Mr. La Torre believes that it can use both its brand and the scant amount of casinos across Italy, to attract players from right across the country. "I think a major factor that will drive play is the question of trust," says Mr. La Torre. "To play on the Casino di Campione website, owned by Casino di Campione, and streamed live from Casino di Campione, ticks all the confidence inspiring boxes and responsible gaming elements wanted by players."

thE physical oNliNE sEt-up In-venue live casino gaming offers two different set-ups. The first is dual-play, whereby the same physical table accepts bets from the physical table and dealer, with a camera streaming the live gaming play. The alternative is pure play, 2 4

However, using dual-play you can exploit the same asset without the additional investment to recruit new staff and buy new equipment, and you can save the space that would be another table or slot. If you visit the studio in Campione, you see the studio is sited within the main trading floor. Physical players can see the games as they happen live, which Mr. La Torre believes is another attraction/spectacle for the casino. "We recommend that operators place the live studio on the main floor, where every player gets to see the action," says Mr. La Torre. "There's no point in hiding the tables away in a VIP area, players want to see what's happening on those tables. To me, it's a fantastic marketing exercise. It is the physical casino experience, but in the online space."

“Casinos need to connect with a new generation of players online. The players going to the casino are getting older, and you really want to avoid what happened to horse-racing in Europe. Horse racing has become a virtual racing medium in Italy. I'm not saying casinos will go the same way, but we have to think ahead 10 years and imagine how the next generation of players want to experience gaming.”

Where legislation allows, this is a solution that could suit every casino. In a market such a Macau, for example, where online is not yet regulated, intra-resort on-live tables could be a huge hit and a perfect workaround for the table cap: mobile live dealer baccarat, within the casino walls, could make sure that every player enjoys a piece of the action. . "Every casino can do it," states Mr. La Torre. "You just need to find a place in your casino that is visible for the rest of the players. You can't ignore the fact that the Internet and online gaming exists, so why not utilise your existing assets in that environment and exploit your unique differentiation to extend your player reach," continued Mr. La Torre. "Casinos need to connect with a new generation of players online. The players going to the casino are getting older, and you really want to avoid what happened to horse-racing in Europe. Horse racing has become a virtual racing medium in Italy. I'm not saying casinos will go the same way, but we have to think ahead 10 years and imagine how the next generation of players want to experience gaming. While many still fear the internet, believing that players won't visit a location if they can play online, it's clear that instead, the barriers to entry are falling thanks to innovative approaches from forward-thinking casinos such as Casino di Campione. This location is already one of the best in Europe and its new live casino offer will help more players than ever to enjoy and appreciate its unique gaming offer.”

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Simulated Gaming™ is the brain child of GameAccount Network PLC, which realized an unspoken truth in 2013: For decades land-based casinos worldwide have bought slot machines from manufacturers, each typically for tens of thousands of dollars, making the slots famous and creating latent demand among consumers to play the same games, online. The advent of Facebook created an all-powerful online platform for manufacturers to move online and serve that latent demand for their games online. Land-based casinos are now galvanised to move online by the tens of millions of dollars income each quarter that is now reported by publicly-traded manufacturers offering Social Casinos on Facebook operated on a free-to-play and pay-to-play basis (called ‘freemium’ in many circles). Before any land-based casino moves online with their own freemium offering, they might want to consider the following: 1. Is my technology supplier competing with me by operating a social casino on Facebook? 2. Does the content make sense, in the context of my existing land-based business? 3. Do I really want to pay Facebook 30% of gross income, before my marketing costs and content costs? Surely I can launch an Online Casino which isn’t reliant on Facebook’s platform? 4. Can I converge the consumer experience? Connecting the online account with my landbased casino customer rewards program should be a priority – who have a proven track record at this?

5. Who has the experience of providing technology to land-based casinos, and can advise us on how best to cross-sell to our patron database and human traffic to the property? Inevitably, these questions are designed to funnel a smart land-based casino operator to the conclusion that they should be working with GameAccount Network PLC, the inventors and pioneers of Simulated Gaming and owners of USpatented convergence mechanisms from land-toonline. This is an editorial, after all … but the truth is precious few land-based casino operators in the US, Europe or Asia have moved online, mostly because they simply don’t know how to start. GameAccount Network PLC is today a publiclytraded company, with a shareholder mandate distilled into “Delivering Your Business Online”. We have a proven track record in delivering landbased casinos online for real money regulated Internet gaming as well as simulated Gaming. We have over 200 games in our library, many recognized Class III slots from global manufacturers. We have integrated with four casino management systems for delivering converged land-to-online consumer experiences. We are a regulated Internet company based in the UK with over twelve years experience of Internet gaming in regulated markets, with a clean probity/compliance track record. Let us help you online, and claim your share of the Internet gaming revolution. Opportunity comes to pass, not to pause. Always.

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Patir chairs are built to last. The upholstery material is sourced from the finest suppliers, such as wild leather from Scotland and leathers (both real and imitation) from Italy. All Patir chairs are quality approved by TÜV Rheinland. Customers not only appreciate Patir’s design and quality, but the simplicity in assembling the Patir chairs. The base is already sub-assembled. All the customer needs do is remove the chair seat from the box and position it into the base. It does not need to be screwed together – which means that assembling chairs takes just a few seconds.

The imposing appearance of the Patir building, located in Eching near Munich in Germany, leaves both a lasting impression and poses an immediate question - why does a company that manufactures and sells casino stools need such a large building? To understand the answer you need to venture inside and explore the vast inner workings of this ‘Made in Germany’ success story.

“Our chairs have been copied several times through the years,” explains Seref Patir. “Our chairs are patented and we rigorously protect our patents. Adding to that, the copies are often hard to assemble and can take well over half an hour per chair to put together. We have designed our chairs in this unique way to ensure that operators waste no time in the assembly process.”

Patir Design is managed and owned by Seref Patir and the beginnings of the company reach back to 1992. At that time Mr. Patir was marketing cabinets for amusement machines, when a joint venture in another industry led him to design and build his first casino chairs and stools. Success came instantly at the German amusement and gaming machine exhibition at the IMA. The Gauselmann Group was so impressed with the chair design that Patir won its first large order. Today, Patir has grown to be one of the best known names in the industry for casino stools, supplying major operators throughout the world. The company philosophy has focused on ultimate chair quality from day one. The unique Patir design and this attention to detail and quality has seen Patir Design grow to become an industry stalwart for casino chairs. The management base and distribution network is situated in Munich, while the sheer choice of chairs and the strong demand means that Patir requires large storage capacity. Enormous stores enable quick delivery times. “Delivery times are key for casino chairs and that is why we carry 2 6

such a large stock. The chairs can be with the customer within two days in Germany and within seven throughout Europe. It is just a question as to how long the transport companies require – we can ship the same day as the order comes through,” explains Süleyman Yilmaz, Sales Manager at Patir Design.”

It’s no surprise that casino chairs are well used. It is not uncommon for gaming machines to be in constant use throughout the day and night at popular casinos and arcades. This means that chairs ultimately suffer from wear and tear – even the highest quality ones. It’s an inevitability that has led Patir Design to offer clear instructions on the parts assembled, enabling the customer to source parts individually.

The Patir Design headquarters measure 7,000sq.m. It is centrally located between Munich town centre and the airport and the large storage capacity means that Patir can deliver between 600 and 700 chairs per day. The production site measures 11,000sq.m. with a daily manufacturing capacity of up to 1,000 chairs.

This spares policy is followed up with a guarantee to offer all chair parts for 15 years. In this way, operators can replace used parts simply (such as arm rests) in the full knowledge that even if that particular chair is discontinued in the future for whatever reason, the spares will remain available for 15 years.

Insight PAtir desiGN

The Patir catalogue underlines the sheer choice available. For example, Patir offers over 10 different base designs with or without rollers. The company’s experience over the years has enabled Patir to offer the right design for the right market. Each and every chair can be altered in height as each person is different in size. Normally chairs remain in their last position, however, Patir offers the capability for chairs to move back to their original position once vacated. Furthermore, the chairs are strong. Very strong.

All Patir chairs are quality approved by TÜV Rheinland. Customers not only appreciate Patir’s design and quality, but the simplicity in assembling the Patir chairs. The gaming sector is the main focus for Patir. Based in Germany, the German street and casino locations are the key market for the company. Yet the international markets are playing an increasingly important role for Patir. Patir chairs can be found across all continents. This is a testimony to the company’s reputation in the industry. Patir Design can supply all seating requirements, from office chairs to a wide choice of sofas and everything in-between. With its chair range is still growing, including he very latest Cobra chair with gaming machine buttons enabling players to play their game while relaxing back in the comfort of the Patir chair, the team’s participations at leading gaming shows continues to bring its successful design philosophy to the widest possible audience. You can visit the Patir stand at any of the forthcoming international shows such as the ICE and G2E as well as national, local exhibitions such as the IMA in Germany and the ENADA in Italy. 2 7

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caEsars pitchEs For NEw york Caesars has provided details for the proposed development of Caesars New York, an $880m resort in Woodbury, NY New York - New Licences

aFiN d’accroîtrE sEs capacités dE jEux, l’alEa Casino de Glasgow vient d’installer la nouvelle roulette i-Table de Bally Technologies. Elle bénéficie de sept positions de jeux, d’un dispositif Fusion Hybride de 16 positions, d’un terminal de gestion et de la possibilité pour le joueur de choisir parmi quatre roues différentes situées dans l’ensemble du casino grâce au lien vidéo Fusion Live. d’après lEs statistiquEs émisEs par lE burEau de contrôle des jeux en ligne chilien (SCJ), les revenus bruts liés aux jeux des 16 casinos ouverts au Chili s’élevaient à 42,5 millions de dollars US au mois de mai contre 19,1 millions en avril. Ces revenus ont augmenté de 21,4 % comparés à ceux du même mois de l'année précédente. suN iNtErNatioNal chErchE à acquérir la majorité des parts restantes du casino chilien de Monticello pour la somme de 114 millions de dollars US. Sun est actuellement détenteur minoritaire des parts du casino. Avec cet accord, Sun acquerrait 54,7 % des actions du Grand Casino Monticello situé au Chili pour les ajouter aux 44,2 % de parts qu’il détient actuellement.

Caesars Acquisition Company, through its subsidiary, Caesars Growth Partners, has submitted its application to the New York State Gaming Facility Location Board for a gaming license, which will be managed and operated by Caesars Entertainment and its affiliates. The application details plans for the resort and presents information about Caesars’ operations and history. Situated in the heart of the Hudson Valley, approximately 50 miles from New York City, the proposed project will be a sustainably designed, contemporary structure that complements the region’s natural surroundings to create a worldclass entertainment retreat. The resort is projected to attract more than 10 million visitors a year, making it a strong economic engine for the State of New York, Orange County and Woodbury. Caesars New York will work closely with other businesses in the State to maximise the economic development opportunity in the region. “We have a tremendous opportunity to bring the

l’associatioN dEs FabricaNts d'équipEmENts de jeux (AGEM) vient d'approuver la création du nouveau comité mexicain de l'AGEM situé à Mexico qui se concentrera sur les problèmes spécifiques au marché mexicain qui touchent de nombreux fournisseurs d’équipements de jeux. lE coljuEgos, lE comité dE coNtrôlE dEs jEux dE Colombie poursuit actuellement son projet de connecter toutes les machines à sous à un serveur central. La connexion de toutes les machines à sous avait déjà été envisagée en 2008 lorsque la Colombie a changé ses lois régissant les jeux d'argent avant que celle-ci ne devienne obligatoire en 2010. La Colombie est toutefois le seul pays de la région qui dispose d’une loi autorisant le contrôle en réseau des machines à sous sans l’avoir appliquée pour l’instant. lE gouvErNEmENt dE porto rico a pErdu environ 8 millions de dollars US entre 2010 et 2013 suite à sa non-application des taxes sur les machines à sous en fonctionnement sur l'île. Selon des statistiques révélées par la Direction des recettes fiscales, le gouvernement n’a pas pu collecter de charges sur quelques 3569 machines à sous en fonctionnement sous licence dans les bars et restaurants. L’OCPR a découvert qu’aucune taxe n’avait été appliquée sur les licences distribuées pour les machines à sous entre juillet 2010 et décembre 2013. lE miNistèrE dEs FiNaNcEs autrichiEN viENt d’attribuer l’une des nouvelles concessions de casino de Vienne, la capitale, à Grand Casino Wien, une co-entreprise internationale gérée par le groupe Stadtcasino Baden, un opérateur de renom qui gère déjà le Grand Casino Baden près de Zurich et le Casino Davos situé en Suisse. Les deux concessions restantes ont été attribuées à Novomatic. Cet événement va créer des centaines de nouveaux emplois en Autriche. Novomatic va construire deux casinos haut de gamme et dernier cri, l’un au Prater de Vienne et le second à Bruck an der Leitha, en Basse Autriche.

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Caesars brand to New York State and create a world-class entertainment facility, adding a new destination the Total Rewards loyalty network and attracting visitors from throughout the region and around the world,” said Gary Loveman, Chairman and Chief Executive Officer of Caesars Entertainment. “If we are successful in winning a license, Caesars New York will create thousands of jobs and become an engine for economic growth in the area. We are grateful for the support we have received from Woodbury residents and businesses and look forward to working closely with local officials if we win a license.” Based on current estimates, Caesars projects an estimated total of $230m in anticipated annual tax revenues with $29m annually going to the local community and $10m to Orange County. The project is anticipated to create approximately 4,500 direct jobs including 1,500 construction jobs and approximately 3,000 permanent, well-paying, mostly union jobs.

Nevada Gaming Partners international has completed the purchase of GemGroup for us$19.75m. Gregory Gronau, GPiC’s President and Chief executive officer, said: “We are pleased to announce the successful completion of our acquisition of GemGroup and its well-known Gemaco-branded gaming products. in addition to adding their playing card and table layout products to our domestic product portfolio and increasing our us market share for both segments of recurring revenue, this acquisition expands our manufacturing capabilities in North America while adding recurring layout sales and related services to ourAsia Pacific offerings. this combination of products, talent and expertise gives GPiC a greater ability to support our global customers’ ongoing table game product needs while expanding our customer support network with Gemaco’s experienced staff. during the forthcoming integration, we will continue to provide the highest quality products and services to all GPi and Gemaco customers.”

Nine new companies take AGEM to an all-time high

Metronia, based in Madrid, Spain, and established in 1994, operates Bingo Electrónico de España, SA and specialises in unique electronic bingo machines.

NEVADA The Association of Gaming Equipment Manufacturers (AGEM) has approved the membership applications of nine new companies, bringing the trade group comprised of the world’s leading gaming suppliers to a total of 141 members.

Portilla, Ruy-Díaz y Aguilar, based in Mexico City, was founded by experienced lawyers from Mexico and the US and specialises in gaming, compliance, real estate, litigation and international trade legal services.

The new AGEM members are Adlink Technology, based in San Jose, Calif., offers industrial embedded computing solutions, application-ready intelligent platforms and customization services to the gaming industry. Amatic Industries, based in Rutzenmoos, Austria, has been operating successfully in the

international casino and AWP market for more than 20 years with a variety of machines and electronic tables. Boss Gaming, based in Hollywood with offices in Slovenia and assembly plants in Columbia and Mexico, produces a variety of electronic roulette and blackjack machines. Gold Club, based in Sežana, Slovenia, creates innovative products through employee synergy. Intervision Gaming, based in Nicosia, Cyprus, produces and develops a variety of products for the worldwide gaming industry.

U1 Gaming, based in Bozeman, Mont., with an office in Las Vegas, designs, manufactures and distributes multi-game video gaming machines for casinos, bars and taverns. Wells Fargo, based in San Francisco, is a nationwide, diversified, community-based financial services company with $1.5tn in assets.

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horsEshoE baltimorE goEs livE The Horseshoe Casino Baltimore is set to open its doors to the public at the end of August offering a huge new venue Maryland - New Operations Executives of Horseshoe Casino Baltimore, the $442m entertainment facility that extends the city’s tourism district south from the famed Inner Harbor and renowned sports stadiums, is to celebrate its grand opening on the night of August 26. Horseshoe Baltimore features 2,500 video lottery terminals and more than 100 table games, plus a 25-seat World Series of Poker-branded poker room. The full-service casino employs some 1,700 team members committed to providing the industry’s best customer service. Horseshoe Baltimore Senior Vice President and General Manager Chad Barnhill said: “After more than two years of planning and construction, we’re excited to unveil our world-class casino,

and Baltimore’s next great attraction. Featuring 122,000sq.ft. of premier gaming space, two celebrity chef restaurants, innovative live entertainment venues, the industry’s best player loyalty program and Maryland’s only World Series of Poker Circuit tournaments, Horseshoe Baltimore offers a truly exceptional gaming experience.” As with all Caesars-operated casinos, Horseshoe Baltimore offers Total Rewards, the gaming industry’s premier player loyalty program that features four distinct levels, or tiers. The more guests play and enjoy the entertainment options offered at the nearly 40 Total Rewards resorts and casinos, the more Tier Credits guests earn – and the more benefits they unlock. “Horseshoe Baltimore provides our guests with an experience unlike any other they’ve had in this area,” Mr. Barnhill added. “In just several weeks, we’re going to change the way people in and around Maryland think of casino entertainment. We can’t wait to introduce Horseshoe’s legendary service to Charm City.”

IGT Interactive supply content to bwin, PartyPoker & PartyCasino NEVADA IGT has partnered with bwin.party digital entertainment to launch many of IGT’s top-performing interactive games on the bwin platform. IGT is supplying its content to bwin.party, which has recently launched online poker and casino offerings in New Jersey under the license of Borgata Hotel Casino and Spa (a long-term IGT landbased casino customer), for distribution in New Jersey at nj.partypoker.com and internationally at partypoker.com, bwin.com, as well as at other bwin.party brands in regulated European markets. With market-leading positions in its product verticals, bwin.party gains access to IGT’s complete game library via a one-time, simple integration to the IGT rgs (remote game server) solution.

Golan Shaked, Director of Games at bwin.party, said: “From the casino floor to online and mobile devices, IGT games are worldwide player favourites. Adding IGT’s portfolio of instantly recognisable, market-attuned content to our brands including bwin, partypoker and PartyCasino will provide great, additional fun and entertainment for our players.” Leigh Nissim, IGT Commercial Director of Interactive, said: “This agreement with bwin.party is a key milestone in our journey across regulated markets – it significantly extends the presence of IGT games in key markets around the world. bwin.party is one of the biggest igaming operators on the planet and our partnership confirms that as a supplier of premium casino content in regulated markets, IGT is a standout choice.”

New York mohegan sun has submitted its final application to the New york state Gaming Commission for a casino license in the Catskills/ hudson valley region, proposing the $550m mohegan sun at the Concord destination resort casino on the site of the historic former Concord resort hotel in thompson, sullivan County. the resort and casino would extend over 60 acres of the 140.3 acre property and would be developed by mohegan sun in partnership with the Cappelli organisation, which owns and manages the property. mohegan sun delivered 20 copies of the application to the Gaming Commission. each copy of the application is approximately 10,000 pages of documents.

grEENtubE, lEadEr daNs lE dévEloppEmENt Et la distribution de jeux Internet, mobiles, pour PC et iTV et son entreprise mère, le groupe Novomatic, viennent d'acquérir Bingocams, l'une des plateformes de bingo en ligne les plus populaires et novatrices auprès de Dazzletag Entertainment Limited. iNtErNatioNal gamE tEchNology viENt dE signer un accord avec DLV pour installer des systèmes IGT dans 50 salles de jeux qui compteront quelques 1000 machines connectées dans l’ensemble de la Lettonie au cours des deux prochaines années. l’associatioN dEs FabricaNts d’équipEmENts de jeux (AGEM) vient d’approuver la candidature de neuf nouvelles entreprises, élevant ainsi le nombre de membres du groupe qui compte les plus grands fournisseurs de l'industrie du jeu à un total de 141 membres. gamiNg partNErs iNtErNatioNal viENt dE finaliser l’achat de GemGroup pour la somme de 19,75 millions de dollars US. Grégory Gronau, PDG de GPIC a déclaré : « Nous sommes heureux de vous annoncer la réussite de l’acquisition de GemGroup et de ses fameux produits de jeux griffés Gemaco ». lE groupE s.p.a gtEch viENt dE FiNalisEr soN accord de fusion avec International Game Technology dont le siège social est situé à Las Vegas, dans le Nevada. D’après les termes de la transaction, IGT et GTECH vont fusionner en une nouvelle holding basée au Royaume-Uni (NewCo). La valeur globale de la transaction s’élève à environ 6,4 milliards de dollars US et comprend la dette nette existante d’IGT qui doit atteindre environ 1,75 milliards de dollars US. aristocrat dEvrait acquérir lE groupE américain Video Gaming Technologies pour la somme de 1,3 milliards de dollars US, ce qui assurera à Aristrocrat une présence plus importante sur le marché des casinos tribaux américains. L’accord, qui permettra également à Aristocrat de refinancer ses capacités de crédit avec une nouvelle enveloppe de 1,4 milliards de dollars US, devrait être conclu d'ici la fin du premier semestre 2015. aristocrat a ENsuitE aNNoNcé l’acquisitioN de tous les biens matériels de Paltronics Inc, y compris la PI relative aux produits. Paltronics est un fournisseur de produits et de systèmes de jeux basé à Crystal Lake, dans l’Illinois. l’état dE NouvEllE-gallEs du sud viENt d’accorder au James Packer’s Crown Resorts une licence pour son nouveau projet de complexe intégré de luxe 6 étoiles à Sydney ce qui marquera l'ouverture de son second casino dans cette ville. Crown devra verser la somme de 100 millions de dollars australiens pour cette licence de 99 ans qui fixe de nouvelles conditions dont des niveaux d'imposition minimum en faveur du gouvernement fédéral. l’opératEur dE casiNo latiNo-américaiN drEam vient d’annoncer qu’il a décidé de retirer sa candidature en vue d’obtenir la gestion d’un casino à Chillán. Claudio Tessada, le PDG de Dreams a annoncé que l’entreprise « ne continuera pas à soutenir une pratique irrégulière ».

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casEars rEbraNdiNg thE quad Caesars Entertainment’s is rebranding its Quad Resort in Las Vegas to transform it into the Linq Hotel & Casino Nevada - New operations

us – goldEN NuggEt wiNs ‘uNshuFFlEd’ casE A Superior Court in New Jersey has ruled that the Golden Nugget in Atlantic City does not have to honour US$1.5m won by a group of baccarat players who realised the cards had not been shuffled. Judge James Isman instructed the casino it would be allowed to recover more than $500,000 it already paid them, ruling that the game of mini-baccarat played in April 2012 was illegal under state casino rules, due to the unshuffled cards. Kansas City playing card manufacturer Gemaco, conceded in court that it had made an error in supplying unshuffled cards to the casino, however, a Golden Nugget lawyer said a confidentiality agreement prevented any further comment. Having realised the cards were being dealt in a specific pattern, the $1.5m in winnings was ‘won’ by 14 players over 41 straight hands. Many of the players were said to increase their bets from $10 a hand to $5,000. Nine players were able to cash out $558,900 in gaming chips but a further $977,800 had been owed. Following a preliminary court ruling two years ago Golden Nugget owner Tilman Fertitta had originally offered to pay the remainder of the disputed winnings. However the players rejected the deal. The Golden Nugget said: “We were 100 per cent vindicated by Judge Isman’s ruling. Remarkably, and despite this generous proposal, the gamblers and their lawyers steadfastly refused, and selfishly wanted more damages than just the gambling winnings. Instead of walking away with over a $1.5m win, the gamblers must now return all of their gambling chips to the Golden Nugget. There are obvious lessons to be learned by all sides as a result of this incident. Unfortunately for the gamblers, it cost them over $1.5m.” us – iNtralot wiNs gEorgia lottEry coNtract The North American subsidiary of Intralot has signed a contract for a Central Monitoring and Accounting System and related products and services with the Georgia Lottery Corporation. Intralot will provide to the Georgia Lottery startup services and operation of its iGEM Central Monitoring and Accounting System including the associated central site equipment, site controllers for the location venues, wide area communications that are needed to connect the site controllers to the central system, as well as reporting, training, staffing and other services as required by the contract. The initial period of contract will commence on January 1, 2015 and run through December 31, 2022. The contract may be extended for three additional one-year extensions. In total, around 6,000 locations and over 26,000 amusement machines will be monitored through Intralot’s iGEM Central Monitoring System. Debbie Alford, President and CEO of the Georgia Lottery Corporation, said: “ The system will assist the Georgia Lottery Corporation in meeting the requirements for the administration and enforcement of laws related to coin operated amusement machines in Georgia.”

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Having rebranded Imperial palace on the Las Vegas Strip to the Quad Resort, Caesars Entertainment is now investing US$223m to transform it into the Linq Hotel & Casino. It will boast 2,256 brand-new urban and modern rooms and suites, a renovated entrance built around a lobby bar, all-new retail and spa amenities and a new pool deck. The LINQ Hotel & Casino will be the premier portal to the LINQ promenade, which offers 12 restaurants, eight bars, 14 retail shops and two concert venues and is anchored by the tallest observation wheel in the world, the High Roller, recently named by Travel & Leisure as the “World’s Coolest New Tourist Attraction.” Tariq Shaukat, Executive Vice President and Chief Marketing Officer of Caesars Entertainment, said: “With The LINQ, we pioneered the creation of a new type of space for the changing Las Vegas consumer. The LINQ Hotel & Casino will continue this revolutionary approach by offering a complete lifestyle experience at one of the best locations in Las Vegas. The resort will provide guests with a highly social and connected environment, with all the great restaurants, shops and experiences available at the LINQ promenade right at their fingertips.” The LINQ Hotel & Casino will feature design details and elements with an eye towards social

interaction and catering to the “connected” consumer. The new resort will boast 2,256 rooms including 204 suites along with 29 cabana suites with private access to the all-new pool area. The guest arrival experience will be centered around an automated check-in process, and a concierge touchscreen option for immediate bookings of favorite dining and entertainment offerings. At the heart of The LINQ Hotel & Casino, the all new lobby bar experience will feature a unique beverage program with wines on tap, and table games. High speed Wi-Fi will be available throughout the resort in all common areas, hotel rooms and on the gaming floor with guests able to stay connected seamlessly between The LINQ Hotel & Casino and the LINQ promenade. “The LINQ Hotel & Casino will immerse guests into social lifestyle experiences through provocative yet approachable modern offerings,” said Bob Morse, President of Hospitality of Caesars Entertainment. “This new hotel is bold, graphic, social and digital with dynamic community spaces designed for the socially engaged traveler.” Combined with the world’s largest observation wheel, the High Roller, and the Linq Promenade retail, dining and entertainment walkway, the Linq Hotel & Casino will welcome its first guests October 30.

Great Canadian casino renews licences in Halifax and Sydney CANADA Great Canadian Gaming has exercised its renewal option with the Nova Scotia Provincial Lotteries and Casino Corporation to extend its operation of the casinos in Halifax and Sydney, Nova Scotia.

operator for the two casinos in Nova Scotia. We are excited to continue our relationship with the NSPLCC and look forward to making exciting changes to the properties that will enhance our guests’ entertainment experiences while meeting both the social and financial objectives of the Government of Nova Scotia.”

Under the terms of the contract option extension, the company will have a minimum of 10 years of term certainty as the casino operator of the Nova Scotia casinos and has committed to make substantial capital investments totalling $10m in the casino properties in Nova Scotia by the end of 2015. The 10-year extension of the third AROC will be effective July 1, 2015.

Great Canadian has been the operator of the two Nova Scotia casinos since 2005. The combined properties feature dining options, showrooms/ lounges, meeting facilities as well as an exciting selection of the latest casino table games and slot machines.

Rod Baker, Great Canadian’s President and Chief Executive Officer, said: “We wish to thank the NSPLCC and its Board of Directors for their continued confidence in Great Canadian as the

The company’s 17 gaming properties in British Columbia, Ontario, Nova Scotia, and Washington State, consist of three community gaming centres, four racetracks, and 10 casinos.

US optimal Payments is buying all of the partnership interests of California-based payment processing entity tK Global Partners, doing business as meritus Payment solutions, for us$210m. the payment will consist of $150m in cash and $60m of optimal Payments shares. optimal Payments has also entered into a definitive agreement to acquire the trade and assets of Global merchant Advisors, a us based online payments company, for up to $15m in cash, $10m of which is payable on closing and the balance based on future performance of the business.

gtEch to acquirE igt For $6.4bN No sooner had IGT announced its move to sell, GTECH quickly became the frontrunner to acquire the US gaming giant

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Nevada - Casino Suppliers Italy’s GTECH S.p.A., has entered into a definitive merger agreement with International Game Technology, headquartered in Las Vegas, Nevada. Under the terms of the transaction, IGT and GTECH will combine under a newly formed holding company organised in the UK (NewCo). IGT shareholders will receive a combination of $13.69 in cash plus 0.1819 NewCo shares (subject to adjustment) for each share of IGT common stock, equal to an aggregate value of $18.25 per IGT share. GTECH shareholders will exchange each of their existing GTECH shares for one (1) newly issued ordinary share of NewCo. The aggregate transaction value is approximately $6.4bn inclusive of the assumption of approximately $1.75bn in existing IGT net debt.

scale and with a full suite of offerings and robust customer relationships across the client spectrum, the new company will have unparalleled capabilities to address the ongoing convergence across global gaming segments. Our expertise across these segments and greater ability to invest in R&D will improve player experiences and benefit our government and business clients. The transaction will significantly enhance our cash flow and financial strength, and provide clear and achievable cost and revenue synergies.”

The transaction creates the world’s largest endto-end gaming company, uniquely positioned to capitalise on opportunities across global gaming market segments. The new company combines best-in-class content, operator capabilities, and interactive solutions, and joins IGT’s game library and manufacturing and operating capabilities with GTECH’s gaming operations, lottery technology and services. The agreement drives scale across all businesses, geographies and product lines and is expected to achieve more than $280m in run-rate synergies by the third year following closing of the transaction.

“We are extremely pleased to reach a definitive merger agreement with GTECH as a result of our exploration of strategic alternatives to maximise shareholder value. This outstanding combination of two global leaders truly defines the future of gaming entertainment. Together we are uniquely positioned to provide the industry’s broadest and most innovative portfolio of best-in-class products, solutions and services. This strategic agreement positions us to further transform the industry while providing meaningful benefit and value to our customers, employees and shareholders,” said Patti Hart, IGT CEO. “Our dedicated employees’ commitment and innovation have enabled us to capitalize upon this opportunity, and we look forward to integrating with the GTECH team to achieve even greater levels of success.”

Commenting on the transaction, Marco Sala, Chief Executive Officer of GTECH S.p.A. said: “This transaction is transformational for our business. With limited overlap in products and customers, the combined company will enjoy leading positions across all segments of the gaming landscape. It will increase our global

The combined entity would have more than $6bn in pro forma revenues and in excess of $2bn in pro forma EBITDA based on the last 12 trailing months as of March 31, 2014. It is expected to generate significant free cash flow and the transaction will be accretive on a cash earnings per share basis immediately.

us – pEchaNga claims world First with batmaN Aristocrat’s newest slot game, Batman Classic TV Series Slot Game Powered by Wonder Wheels, has now made its world premiere at Pechanga Resort & Casino. Iconic TV star Adam West was on hand for the celebration, greeting a throng of cheering fans and signing autographs. He said: “I’m so proud to have been a part of a beloved TV series that continues to bring joy to generations of fans. Featuring clips and iconic catch phrases from the original series, and with new voiceovers from me, it’s great to see the fans continue to get excited for Batman with this new slot game.” Batman Classic TV Series Slot Game Powered by Wonder Wheels puts a triple spin on fun on the casino floor. The $250,000 multi-site progressive game features still and video imagery from the classic TV series with Adam West, and three mechanical wheels that increase player engagement. us – thrEE millioNairEs iN thrEE days For igt IGT’s legendary MegaJackpots game, Wheel of Fortune, awarded three, $1m-plus jackpots on three consecutive days in casinos across the US. All three winners wished to remain anonymous. The winning weekend kicked off June 14, 2014 when a lucky player won a $1,557,384 jackpot at Mohegan Sun in Uncasville, Connecticut, on IGT’s huge game, Wheel of Fortune Super Spin Wolf Run. The mega-sized win marks the third million-plus jackpot won on an IGT slot machine at Mohegan Sun in 2014.

GTECH to create first regulated interactive bingo network in US

both French and English, has been providing interactive bingo games to Quebec residents since June 12.

us – tropicaNa sElls rivEr palms casiNo Tropicana Entertainment has agreed a sale and lease back transaction with Laughlin Hotel and Nevada Restaurant Services, through its subsidiary companies Columbia Properties Laughlin and CP Laughlin Realty.

US GTECH’s subsidiary GTech Sweden Interactive AB has entered into an agreement with the Societé des Lotteries du Québec (Loto-Québec) and the British Columbia Lottery Corporation (BCLC) to provide interactive bingo software, games, and related services to these Canadian lotteries through June 2018. The contract represents North America’s first government-regulated interactive bingo network.

Jaymin Patel, President and CEO, GTECH Americas, said:“GTech is proud to launch another industry first with Loto-Québec and BCLC in the government-sponsored interactive space in North America. The Canadian Bingo Network will ensure that players have a legal, safe and fun experience, and that proceeds from interactive bingo in these Canadian provinces will remain in their communities.”

The deal has seen CP Laughlin and CPL Realty sell all of the assets associated with the operation of the River Palms Casino in Laughlin, Nevada, for $6.75m in cash.

Under the four-year agreement, which includes two, two-year

options for extensions, GTech will host from its Montreal, Canada Data Center, while associated live chat and call center services are based at its National Operations Center in Toronto, Canada. On May 14, 2014, BCLC updated and launched new interactive bingo games on its PlayNow.com site. Through a separate agreement between BCLC and Manitoba Liquor & Lotteries, PlayNow.com and its content are also available to Manitoba residents. Loto- Québec’s Espacejeux.com site, available in

CHTECH’s games provided through this agreement includes the Canadian debut of PopCap Games’ Plants vs. Zombies Bingo.

CP Laughlin leased back River Palms for a period of up to 90 days, subject to an additional 30 day extension, and further subject to earlier termination rights. Tropicana intends to terminate the lease and discontinue its operation of River Palms in September 2014. Tony Rodio, President and Chief Executive Officer for Tropicana, said: “We are pleased to announce this transaction today. We have had River Palms on the market for some time and upon the closing of this transaction and the discontinuance of our operation of River Palms in September 2014, we will be able to focus our Laughlin efforts exclusively on our flagship property – Tropicana Laughlin.”

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Insight four WiNds CAsiNos

KeePiNG AN eye iN the storm At four WiNds Four Winds casinos in Michigan, US, rely on the surveillance technology of Germany’s Dallmeier for protection Four Winds casinos in Michigan rely on video surveillance technology "made in Germany". A video system by Dallmeier has been watching over Four Winds Hartford since August 2011. Now, locations in New Buffalo and in Dowagiac, the latter of which opened in April, 2013, have also been equipped with Dallmeier technology.

Four wiNds hartFord Four Winds Hartford casino is synonymous with gambling fun in southwestern Michigan. On over 4800 m² (52.000sq.ft.) more than 550 slot machines and numerous gaming tables with Roulette, Blackjack, and more, are available to the guests. When the casino was built in 2011, the management placed the highest value on the latest video technology and on selecting the right cameras. After extensive testing, a decision was made to utilize high-resolution HD network cameras by Dallmeier, manufacturer and video experts in developing and producing specialised security and surveillance solutions for casinos since 1997. “Casinos always present a challenge for cameras: Lighting conditions are often unfavourable, but even the slightest movements lasting only fractions of seconds at a gaming table have to be followed to allow unclear situations or attempts at cheating to be unequivocally resolved,” explains Marcel Zangger, Director of Operations at Dallmeier USA. Reliable recording was also important to those responsible for security and surveillance at the Four Winds Hartford casino. Dallmeier offers various options, from the highest-technology blade solutions to energy-efficient video 3 2

Stacey Soria, Vice President of Surveillance, Four Winds casinos.

“Dallmeier’s blade solutions enabled us to have a custom-made solution specifically created for us. It offers maximum fail-safe operation but at the same time it is very attractive from a financial point of view.”

appliances with integrated storage system. “This enabled us to have a custom-made solution specifically created for us. It offers maximum fail-safe operation but at the same time it is very attractive from a financial point of view,” says Stacey Soria, Vice President of Surveillance for Four Winds casinos.

in practical application that after one year, Four Winds casinos decided to replace the existing video system in New Buffalo with Dallmeier technology. “We were always having problems with the old system and the support was not very good. That’s why we wanted to switch to Dallmeier products here, too,” says Stacey Soria. Now, over 1,800 cameras in the resort look after its guests and provide a safe and secure environment. Four Winds New Buffalo casino is located close to the border to Indiana and with more than 12,000 m² (130.000sq.ft.) of floor space, it is substantially larger than the casino in Hartford. Approximately 3,000 gaming machines with the highest jackpots in the region are in operation and gaming tables with Roulette and Blackjack set gaming hearts to racing. Whoever gets hungry after that much adrenaline can have a meal in one of the resorts award-winning restaurants, relax with live music in the Hard Rock Cafe Four Winds or enjoy the shows in Silver Creek Event Center.

Four wiNds dowagiac The video system is controlled by the SeMSy management system; it is simply and intuitively operated. From showing live images, to searching through the recordings in many different ways and on to controlling PTZ cameras: SeMSy offers a wide variety of possibilities which were individually adapted to the requirements of Four Winds casinos. Integration with the cashier system in all Four Winds casinos was also implemented. This allows the POS system from InfoGenesis to send transactional data to the Dallmeier recording system for later interrogation. Each transaction can then be searched and verified with corresponding video.

Four wiNds NEw buFFalo The video system in Hartford proved itself so well

The Dallmeier solution was also put to use in the Four Winds Dowagiac casino, which opened its doors in 2013. This system keeps an eye on 300 of the latest slot machines and five gaming tables. Stacey Soria says: “We believe in the Dallmeier technology. That is why we once more decided in favour of this solution for our third casino in Dowagiac. The equipment works reliably and the support by Dallmeier USA is fantastic!” Joe McDevitt, President of Dallmeier USA added: “we are delighted to include Four Winds casinos to our list of happy customers. This is a truly professional operation that provides us with feedback enabling us to add useful features that will benefit all of our clients.”

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maNila bay NEEds local partNEr PAGCOR has laid down the law, stating that Manila Bay Resorts can’t open unless Tiger Resorts Leisure gains a local partner Philippines - Casino Operations The Philippine Amusement and Gaming Corp (PAGCOR) has confirmed that Tiger Resorts Leisure and Entertainment, owned by Kazuo Okada, will not be able to open Manila Bay Resorts until it has secured a local partner to work with.

chiNa – amax suEs grEEk mythology Macau junket operator Amax International Holdings is taking court action against Greek Mythology (Macau) Entertainment Group, saying it has failed to produce its annual accounts to shareholders. Amax International announced to the Hong Kong Stock Exchange that it wants to see Greek Mythology’s management accounts for 2013 within 60 days. Amax owns 24.8 per cent of Greek Mythology. Amax stated: “Reference is made to the announcements of Amax International Holdings Limited dated 5 June 2014 in relation to unavailability of audited financial statements of the Associate and 30 May 2014 in relation to update on the litigation in respect of the Associate. Unless otherwise defined, capitalised terms used herein shall have the respective meanings ascribed to them in the above mentioned announcements. Further to the ruling made by the Court of First Instance of Macau, SAR on 19 May 2014 as mentioned in the Announcement, the Board decided to take further legal actions and hereby announces that on 18 June 2014, the company has filed a court action in Macau against the Associate in relation to its failure to provide its annual accounts to its shareholders.” malaysia – iNtralot ExtENds lottEry dEal Intralot has signed an extension of its agreement with Magnum Corporation Sdn. Berhad, a leading gaming company in Malaysia, for a further seven years with an option of extending it for another two years. The agreement concerns the procurement, installation and support of an advanced, integrated lottery system to support up to 2,450 gaming terminals, Intralot’s core operating system LOTOS O/S, and an On-line Gaming Computer System, including both the games software and its state-of-the-art new generation of Photon terminals. In addition to the central system, Intralot will also provide service functions, such as customer and marketing support, and all the necessary services for the operation and maintenance of the Central System during the seven years of the extended agreement. The implementation of the project will begin immediately and the commercial operation is estimated to start in mid 2015. The CEO of Magnum Corporation Sdn Berhad, Dato Lawrence Lim Swee Lin, commented: “We are pleased to continue to work with Intralot as they have proved to be a reliable and innovative Technical Solutions Provider and they understand our needs.” Ioannis Pantoleon, Intralot Group Chief Operating Officer, stated: “We are very pleased to sign this new extension for seven years and appreciate the trust that Magnum has shown in Intralot’s expertise and ability to undertake the demanding technology upgrade of Magnum’s system.

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PAGCOR Chairman Cristino Naguiat Jr said: “Even if they finish it they still cannot open it if they do not have a local partner. Before opening they should abide by all Philippine laws.” The US$2bn integrated hotel and casino resort is due to open in Entertainment City in Manila Bay by March 2015. Legislation dictates that an ownership model must be in place of 60/40 in favour of investors originating from the Philippines. Okada’s Eagle I Landholdings and Century Properties are expected to battle it out in court after Mr. Okada terminated a deal for Century to be a real estate partner in Manila Bay Resorts. The Japanese billionaire believes the project in Entertainment City will open on time despite a legal dispute with Century Properties Group.

The Okada group stated: “Our construction is progressing according to schedule. Currently, this construction includes the hotel tower and casino floors. We project mass hiring of operational staff during our planned opening in the third quarter of 2015. In connection with the issue on the allegations of Century Properties Group Inc. (CPGI), we regret that the development turned out the way it did. We wish to say that there have been no financial transactions with CPGI and the Okada group.” The Okada group added: “Our goal is to contribute to the Philippine economy through our investments in PAGCOR city and generate employment to thousands of Filipinos, during the construction phase and the operational aspect of the project.”

GTECH’s MarginMaker platform supports Betfred in Australia AUSTRALIA GTECH has announced that it has been selected to provide the technology platform to support UK sports-book operator Betfred’s launch of its new Australian interactive sports betting operation. GTECH’s MarginMaker platform supported the launch of Betfred’s sportsbook product in May 2014. The initial sports betting launch included the mobile sportsbook, with online and racebook launches to follow in the coming months. GTECH has been the primary supplier to Betfred in the UK for more than 10 years. Betfred established operations in Sydney and Darwin under a Northern Territory Gaming Commission license. “GTECH is very excited to extend our partnership with Betfred into the Australian market. This is the first such foreign venture we have worked on together, and we

hope it is the first of many,” said GTECH International Senior Vice President and Chief Operating Officer EMEA Declan Harkin. “We tasked GTECH and Betfred’s front-end development agency, Degree 53, in developing a new stand-alone system with a localized offering for the Australian market. They both rose to this challenge and delivered a sports mobile product on time and within budget, working seamlessly with the Betfred teams in both the UK and Australia to very strict deadlines, through every time zone and continually going that extra mile to ensure the product was ready,” said Betfred Australia Managing Director Luke Brill. “We are delighted to have now launched our sports-only mobile site at m.betfred.com.au for the FIFA World Cup. This is the first of a multi-phased approach to the Australian market. The mobile site will soon be followed by standalone apps and then our full website and with racing,” Brill added.

Malaysia malaysia’s Genting has put in two applications for casinos in New york state, with planned investments of $2.5bn, according to filings with the New york state Gaming Commission. the company has requested permission for a $1.5bn resort on 238 acres of land in the town of tuxedo, the closest location possible by law to New york City. the resort will feature a five-star hotel, a world-class spa, an adventure park and fairgrounds. the resort is positioned within a one hour drive of six million people and within two hours of 23 million. the second proposal is for a $1bn property to be known as resorts World hudson valley, located some 90 minutes from New york. the four-star resort will feature 600 rooms, 19 restaurants, shops and 100,000 square feet of conference space.

aristocrat to buy vgt For $1.3bN Aristocrat has confirmed the acquisition of US-based Class II gaming developer, Video Gaming Technologies for US$1.3bn

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Australia - Suppliers Aristocrat is set to buy US group Video Gaming Technologies in a $US1.3bn deal that will give Aristocrat a greater presence in the key tribal casino market in the US. “The strategic and financial benefits are compelling for Aristocrat shareholders,” chief executive Jamie Odell (pictured) said in a statement to the Australian Stock Exchange. “VGT has a complementary product offering and provides a unique opportunity to accelerate our growth in the US recurring revenue segment, which has for some time been an important strategic objective.”

“We have consistently called out growing in the North American market as our highest strategic priority,” Mr Odell said during a call to investors.

In addition to the new debt arrangements, the The cash deal, which will also see Aristocrat reficompany plans to conduct a $375m placement to nance its debt facilities into a new $1.4bn debt package, is expected to be completed by the end of institutional investors and a $30m share offer to members of the Ainsworth family, who are the first half of 2015. VGT is one of America's largest privately owned gaming machine suppliers, amongst the group’s largest shareholders. Retail shareholders will be also be able to buy up to and concentrates on Class II gaming machines. $15,000 in new shares. The deal will take Aristocrat’s gaming operations from an installed base from approximately 8,200 The deal will see VGT founder Jon Yarbrough walk units to 28,400 units and increase the percentage of Aristocrat’s earning defined as recurring from 15 away from a business that he started in 1991. Mr Yarbrough will stay on as an adviser after the deal per cent to 35 per cent. It also increases revenue and Mr Odell says Aristocrat has put in place from the North American market from 48 per cent “mechanics” to retain key VGT staff members. to 60 per cent. Tahiti the french Polynesian government has approved a proposed hotel and resort complex on tahiti, which will cost nearly us$3bn to realise. A jury has picked the project by a hawaiian company, Group 70 international, to develop the tahiti mahana Beach resorts and spa on 52 hectares on the island’s west side. the two other proposals were from a french and a Chinese company.

Aristocrat acquires Paltronics to boost Oasis systems division AUSTRALIA In a busy month for Aristocrat the company has further announced the acquisition of all material assets of Paltronics Inc., including IP relating to product. Paltronics is a supplier of complimentary gaming products and systems based in Crystal Lake, Illinois, US. Paltronics provides a range of applications for in-game media windows and bonusing applications for EGMs, video poker machines and table games. The company is a market leader in progressive jackpots, with Paltronics jackpot controllers already deployed in Aristocrat’s highly successful linked progressive products including

Hyperlink and Xtreme Mystery. In North America, Paltronics provides a complementary product offering to Aristocrat’s OASIS 360 systems portfolio, with digital media, and venuewide progressive bonusing. In Australia, New Zealand and throughout Asia, Aristocrat will maintain the relationship with the independently-owned Paltronics Australasia, which has acted as the exclusive distributor for Paltronics products in the regions. This acquisition will further strengthen Aristocrat’s OASIS 360 systems offer in North America, while delivering incremental product synergies,

access to new technologies and product features, cost savings and integration benefits. This deal will also secure Aristocrat’s access to key technology underpinning the company’s exciting new generation of linked progressive products, while protecting existing multisite progressive technology infrastructure and opening up further innovation opportunities in the jackpot segment. Aristocrat CEO Jamie Odell, said, “This is a compelling acquisition that will deliver significant value across key strategic segments, particularly our leading US casino systems business and in linked progressive and jackpot markets. This acquisition is another demonstration of Aristocrat’s readiness to make strategic and measured investments behind our core value drivers, consistent with our growth plans.”

south korEa – dElays hit gENtiNg’s jEju projEct Genting Singapore’s plans to build a US$2.2bn casino resort in South Korea’s Jeju Island are facing delays prior to a ground-breaking event on June 24. Despite having already sent out invitations for guests and the media to attend, Genting has decided to reschedule the ground-breaking ceremony. Genting Singapore stated that the postponement was to give it the opportunity to speak to the newly-elected governor of Jeju about the casino’s vision and its economic contribution to Jeju Island. The company now expects construction of Resorts World Jeju to begin in the third quarter of 2014 and that it will open in stages from 2017. In February, Genting Singapore said partnering with Chinese property developer Landing International Development, marking it first move into South Korea. The resort would feature roller coasters, hotels with castle-like facades and replicas of monuments like the Taj Mahal and the Pyramids, the iconic destination will be Jeju Island’s largest tourism resort to date. Landing International and Genting Singapore will jointly own, manage and operate the integrated resort when it opens progressively from 2017. australia- Echo looks to up star’s vip aNtE Echo Entertainment Group has applied for a $13.7m VIP extension at its Star Casino with the City of Sydney Council. Echo wants planning permission to build five new VIP gaming rooms on the 17th floor of the Astral hotel The Star already boasts Sovereign Room and Inner Sanctum that cater for VIP guests but it is looking to increase its VIP offering prior to Crown Resorts opening its VIP-only $1.3bn Barangaroo casino in November 2019. A spokesman for Echo Entertainment Group revealed that details of The Star’s proposed development would be on display throughout July. He said: ‘‘Echo is undertaking the investment as part of our ongoing reinvestment in The Star. As outlined in Echo’s recent trading update the underlying business has good momentum and we want to continue to build on this attracting both local and International visitors.’’

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Ega to sEll drEamworld casiNo Entertainment Gaming Asia is to sell its Dreamworld Casino in Pailin, Cambodia, to a local Cambodian company Cambodia - Operations Entertainment Gaming Asia is to sell its Dreamworld Casino in Pailin, Cambodia, to a local Cambodian company. It will also terminate all previous agreements with its partner in the operations, who is a relative of the Purchaser. Dreamworld Pailin, a regional casino, opened in May 2012 and was constructed on land owned by the Partner in the Pailin Province of Northwestern Cambodia next to the Thailand border.

chiNa – mgs’ iNFluENtial Exhibitor liNE-up Organisers of November’s Macao Gaming Show (MGS) have unveiled an exhibitor list which comprises many of the biggest and most influential organisations active in the international gaming community. Taking place across 18-20 November, 2014 at the Venetian Macao, MGS will feature a raft of heavyweight international gaming companies, including IGT Asia Macau, Aristocrat (Macau), Aruze Gaming Macau, Ainsworth Game Technology, TCS John Huxley, LT Game, BMM Testlabs, Astro Corp, Future Logic, Angle Playing Cards, Inspired Gaming Group, JCM Global, Matsui Asia, and MEI Group. As of July 1 95 per cent of last year’s exhibitors have re-booked with companies new to MGS being offered stand options for the 2014 event. Marina Wong, (pictured) General Manager and Event Director at MGS said: “Our objective was to build on the success achieved in 2013 and the response from the international gaming community has been very positive. 2014 is on course to be a bigger event featuring returning companies as well as those which will be new to MGS. The proportion of returning exhibitors is a very accurate measure of success and I’m delighted to have some very important companies on the floor plan. The MGS slogan ‘By Asia for the World’ could not be more appropriate.” australia – aristocrat dEal ENhaNcEs oasis Aristocrat has entered into an exclusive licensing and development agreement with casino loyalty solution developer House Advantage. Under the agreement, Aristocrat will be the exclusive licensee and sales distributor for House Advantage’s gaming product suite in the North American market. Aristocrat will embed House Advantage software into Aristocrat’s Oasis 360 casino management system. Aristocrat will also act as first level of support for the HALo suite of products, bringing world-class service to the software suite. Additionally, Aristocrat and House Advantage will work jointly to develop new casino promotional software and loyalty solutions. “Leading casinos across North America are successfully using House Advantage’s elite software, which provides casinos of all sizes with a scalable, competitive, unique, innovative solution for building patron loyalty. This agreement reflects our commitment to bringing best-in-breed software solutions to our loyal Oasis 360 clients, and we are thrilled to bring these solutions to our company, to our existing Oasis 360 customers and to other customers across North America,” said Aristocrat Chief Product Officer Rich Schneider.

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While operating losses for Dreamworld Pailin have narrowed in recent months, due to an inability to secure a long-term third-party table game operator, a low level of natural player traffic and the political unrest in Thailand, Entertainment Gaming Asia has been exploring strategic alternatives for the property. After careful evaluation of all options, on June 20, 2014 the Company entered into an agreement to sell 100 per cent of the issued shares of DWP to the Purchaser. The sale includes all assets of DWP with the exception of all electronic gaming machines, certain surveillance equipment and other assets excluded in the agreement and prohibits any use of the Dreamworld brand name by the Purchaser. Total consideration paid to the Company by the Purchaser will be $500,000, of which $100,000

was paid at the time of entering the agreement and the balance is to be paid in 16 $25,000 monthly instalments commencing within one month of the signed agreement. The parties expect to complete the sale transaction subject to the purchaser’s receipt of certain government approvals, which is expected within the next few months. In connection with the sale of the issued capital shares of DWP, on June 20, 2014 the company and the partner entered into an agreement to terminate the previous agreements with the Partner and all future obligations there under including future lease payments owed by the company. As previously reported, the Company recorded an impairment charge of approximately $2.5m as of December 31, 2013 related to Dreamworld Pailin. The impairment charge represented the entire capital expenditure incurred for the property as of December 31, 2013 with the exception of those assets that the Company believes could be redeployed to other existing properties.

Crown Resorts to pay A$94m for Sydney casino license AUSTRALIA The state of New South Wales has awarded James Packer’s Crown Resorts a license for its six-star luxury integrated resort project in Sydney, its second casino in the city. Crown will need to pay A$100m (US$94m) for the 99year license, which also sets out a series of other terms and conditions, including minimum tax revenue levels for the state government. No poker machines will be allowed on the premises and gaming will be subject to minimum bets. Only members and guests will be allowed to gamble, not the general public, the company said in an ASX filing. Smoking will be permitted in the facility, providing air quality equipment is installed. The license provides for Crown to pay a minimum of $1 billion in

gaming taxes over the first 15 years of operation of the Crown Sydney resort. It also states that in the first three years, the revenue from the company’s combined operations in the city must be at least three times that of The Star casino in the year prior to opening the new resort. Crown Resorts CEO Rowen Craigie said the license award was an important milestone for the project. “Crown Sydney will help bring international and domestic tourists to Sydney, create over 1,200 jobs and generate significant economic benefits for New South Wales,” he said.

Saipan saipan’s CNmi lottery Commission has granted a conditional license to develop a $2bn integrated casino resort on saipan to Best sunshine international, a subsidiary of hong Konglisted imperial Pacific international. the approval is conditional upon the commission and hong Kong-based Best sunshine’s clarification of the casino development agreement. representatives of Best sunshine must now meet and discuss with officials of the lottery Commission in order to finalise the terms and conditions for the award of the casino licence. the commission’s two u.s.based consultants that investigated and reviewed the applications—the innovation Group of Companies and B2G Global strategies—recommended Best sunshine for license consideration over marianas stars.

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Insight AustrAliA

Bookies fees risk inflating the illegal market Fee hikes for bookies in Australia’s horse betting market threaten to boost illegal gambling, push players back offshore and may force companies to change their business models, experts say. This article was first published by Asia Gambling Brief.

Victoria has changed its fee structure, while New South Wales has also proposed similar hikes, sparking concern others may follow suit and raising a furore among the nation’s bookmakers. According to the Australian Wagering Council, racing accounted for 13.6 per cent of Australia’s total A$19bn ($17.8bn ) spend in the 2008 2009 period. A report by the The Victorian Commission for Liquor and Gambling Regulation for 2012 2013 estimated that the combined racing and sports betting take had risen to some 15 per cent of total spend. Under the new fee structure for pari mutuel bets, bookmakers in Victoria will have to pay the higher of 1.5 per cent of turnover, or 15 per cent of gross revenue for 440 standard race meetings in 3 8

Victoria. For the 45 group and listed meetings the charges rise to the higher of two percent of turnover, or 20 per cent of gross revenue, while for the 10 premium group one meetings, including the Melbourne Cup, the fees are increased to 2.5 per cent, or 30 per cent of gross revenue. For nonpari mutuel bets the fees rise to three per cent for premium meetings. In Queensland, the proposed structure will see totalisator bets charged at 1.5 per cent of turnover for standard meetings and 2.0 per cent for premium meetings. Nontotalisator bets will be charged at 2.5 per cent of turnover for standard and 3.5 per cent for premium. New South Wales may also follow suit. According to Tabcorp, without mitigating

strategies the Queensland changes would have cut net profit after tax by $3m, while the Victoria hikes would have cost $4m. Paddy Power has condemned the increase and has threatened to redirect promotional activity to sports betting and racing in other states. A representative of the Australian Wagering Council (AWC) told AGB that “regular reviews of the product fees levied to bet on racing in Australia impact significantly on wagering service providers and the racing industry itself.” The AWC believes that these fees will limit competitiveness and may drive punters towards either “illegal, unregulated starting price (SP), or offshore bookmakers.” They do not pay tax and

Insight AustrAliA William Hill does not yet have a plan as to how it will deal with the increase in fees, he said. “We are currently assessing the impact of the change and next steps.” The fee hikes may also help to accelerate a trend in the country’s betting market away from wagering on horses to a broader sports betting model, especially online. Bill Brown of law firm Rockwell Olivier, predicts that these fee hikes will not necessarily lead to investment back into racing. Brown says “there are no external checks and balances on how the racing controlling bodies spend the money raised.” He says the race fields legislation needs to be revisited so that “the fees are not frittered away on administration rather than on improving the quality of the racing product.” Overall, the online sports betting market in Australia is booming. The growth has attracted an influx of foreign investment, with many local bookmakers being bought up by overseas giants. However, this growth marks more of a move from one platform to another, rather than an expansion in the overall market. The wagering market has not, overall, expanded tremendously in the past four or five years, but merely kept pace with Australia’s general economic growth at about four to five per cent, according to AWC figures.

do not have policies in place to maintain responsible gambling, the body argues. Karen Avery, Senior Director Gambling and Licensing Services, Department of Business, for the Northern Territory said the state doesn’t plan to follow suit with fee hikes. In May, when the changes were first announced, Cormac Barry, chief executive of Sportsbet, told media that they were a “lazy option,” agreeing with the AWC that the move may force betting to other states or areas. James Henderson, former Group Operations Director at William Hill and now CEO, told AGB that he concurs with the AWC's assessment that the increase in racing fees will negatively affect

"The real risk is that the increase in fees pushes consumers to unregulated offshore operators, which defeats Racing Victoria's objectives as revenues are funneled offshore”, said Henderson. He believes that such operators do not have the same commitments to responsible gambling or harm minimisation.” James Henderson, Group Operations Director, William Hill.

More Australians are now using online wagering systems than before, which has reduced offshore wagering in Australia from 37.7 per cent in 2003 to 13.8 per cent in 2011. However, it is still estimated that some A$900m still heads overseas. Avery of the NT also said betting on other kinds of sports, rather than race wagering was becoming more popular as the demographic changes. Sports betting appeals to a younger, predominantly male audience, who are attracted by the better cost efficiency and better live odds.

both punters and the industry more generally.

The sports betting industry also appears to have dodged a potential bullet, at least for the time being, with no changes to sports advertising rules. There was concern last year that the government planned strict regulations on advertising, which had been seen as one of the main reasons fuelling the sports betting boom.

"The real risk is that the increase in fees pushes consumers to unregulated offshore operators, which defeats Racing Victoria's objectives as revenues are funneled offshore,” said Mr. Henderson. He believes that such operators do not have the same commitments to responsible gambling or harm minimisation.

South Australia did bring into place new advertising codes in March. However, there has been a misconception that laws have changed or been tightened, which may be because regulators are now more vigilant in spotting and cracking down on breaches, says Jamie Nettleton, a partner at law firm Addisons in Sydney. 3 9

G3-247 Report NeW ZeAlANd

All the elements in harmony All public gambling in New Zealand is expected to return a portion of profits to the community, with the largest proportion of the gambling industry operated by state-owned institutions. Has New Zealand found the right gaming balance?

New Zealand is an island located in the south west Pacific Ocean and geographically comprises of two main land masses – North Island (Te Ilk-a-Maui) and South Island (Te Waipounamu) alongside numerous small islands. It is situated some 1,500 km east of Australia across the Tasmanian Sea and because of its remoteness was one of the last lands to be settled by humans. Due to its long isolation it developed a distinctive biodiversity of animal and plant life including a large number of unique bird species. The Polynesians settled in New Zealand in 1250-1300 CE and developed a distinctive Maori culture, which were divided into two tribes called the Iwi and Hapu. A group migrated to the Chatham Islands where they developed their Moriori culture which has since died out. Abel Tasman, a Dutch explorer was the first European to 4 0

sight New Zealand in 1642 and he called the land ‘Staten Landt’. It was later renamed ‘Nova Zeelandia’ after the Dutch province of Zeeland and British explorer James Cook later anglicised the name to New Zealand. In the 19th century the introduction of potatoes and musket weapons transformed Maori agriculture and warfare. Potatoes provided a reliable food surplus whilst the Musket Wars led to a series of 3,000 years of inter tribal battles fought in New Zealand and the Chatham Islands amongst the Maori tribes. Finally in 1840 the British and the Maoris signed a treaty to make New Zealand a colony of the British Empire. Immigrant numbers soared and conflicts escalated and Maori land was confiscated in the mid North Island and economic depressions followed. On the plus side New Zealand became the first nation to grant women the right to vote in 1893 and a welfare state

was set up in 1930s when the first Labour government came into power. As World War II ended the Maoris began to leave their traditional rural life and move to the cities in search of work and during the 1950s the country enjoyed one of the highest standards of living in the world. However the 1970s saw deep recession and the country underwent major economic changes during the 1980s which transformed the country from a protectionist to a liberalised free trade economy. Meanwhile the North and South Island are separated by the Cook Strait which is 22 kilometres wide at its narrowest point. Besides these two large islands the five largest inhabited islands include Steward Island, Chatham Islands, Great Barrier Island, d’Urville Island and Waiheke Island. New Zealand is a long thin country and over 1,600km

G3-247 Report NeW ZeAlANd

when refrigeration developed and were exported to Britain and there are high demands for agricultural products from the UK and US which helped New Zealanders achieve higher living standards. Today New Zealand is one of the top five dairy exporters in the world. In 1973 the export market for New Zealand was reduced when the UK joined the European Community and an economic depression began and living standards fell. By 1982 the country had the lowest per capita income of all developed nations. Since 1984 however there has been a major restructuring programme to transform the country into a liberalised free trade economy. Unemployment peaked above 10 per cent in the early 1990s but is today around 6.6 per cent. The global recession hit the country but now after years of sluggish growth the country is on its way to seeing a huge growth spurt. Recovery has been led by exports with demand from Australia and China who have been less affected by the crisis. After 10 years of Labour Party dominated governments the centre right National Party led by Prime Minister John Key returned to power in November 2008 and was re-elected in November 2011.

Tourism is one of New Zealand’s largest export industries and employs around 5.7 per cent of the workforce with one in 11 working in the tourism industry. Real GDP growth today is around $142bn with a 1.5 per cent growth.

long and only 400km wide maximum with around 15,000km of coastline and a total land area of 268,000sq.km. The South Island is the largest landmass of the country and divided along its length by the Southern Alps of which there are 18 peaks of over 3,000m the highest being Mount Cook/Aoraki. The North Island is less mountainous but is marked by volcanism with the highly active Taupo Volcano. New Zealand is divided into 11 regional councils and 67 territorial authorities for local government purposes. The country today has a modern, prosperous and developed market economy and has focused on sealing, whaling, flax, gold, kauri gum and timber. Meat and dairy products were increased in the 1880s

01 Lotto New Zealand is headed by Judy Kirk who was appointed chair in May 2009. The main games include Powerball, Lotto, Lotto Strike, Big Wednesday draw, Keno, Bullseye and Instant Kiwi. There are over 1000 retailers from Houhora to Stewart Island based in cities, metropolitan areas and rural towns. 02 Lotto NZ employs around 120 staff at its Auckland, Wellington and Christchurch offices plus the 1,217 outlets employ over 5,000 people who have earned over $50m in sales commission during the last financial year. Retailers receive seven per cent commission on their gross lottery sales.

Tourism is one of New Zealand’s largest export industries and second to the dairy industry in terms of foreign exchange earnings. It employs around 5.7 per cent of the workforce with around one in 11 working in the tourism industry. Last year international visitors spent $9.8bn whilst domestic tourism expenditure was $14.2bn. Tourism’s direct contribution to the GDP was 3.7 per cent. In 2013 there were 2.6 million international visitors to the island.

thE lottEry Back in 1985 a ‘Sport on the Move’ report by the government appointed Sports Development Inquiry, identified lotteries as an additional source of income for recreational, arts, sports and community projects. The idea was approved a year later and in 1986 an interim New Zealand Lotteries Commission was set up whilst legislation was passed the following year and the lottery was established in June 1987. The first lotto tickets went on sale in July 1987 via 420 initial retailers and the sales for that first year up to March 1988 amounted to $75m. 4 1

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Today the Lotto is governed by the Gambling Act 2003 and the Crown Entities Act 2004. Other games, such as Instant Kiwi, Loto Strike and Keno followed in 1995 and in 2001 Powerball was introduced. By August 2006 New Zealand Lotteries celebrated the Lotto’s 1000th draw. By 2009 sales had reached $907.7m annually and by 2011 the company celebrated the milestone of reaching $3bn in funding which had been transferred to the New Zealand Lottery Grants Board. Lotto New Zealand is headed by Judy Kirk who was appointed chair in May 2009. The main games include Powerball, Lotto, Lotto Strike, Big Wednesday draw, Keno, Bullseye and Instant Kiwi. There are over 1000 retailers from Houhora to Stewart Island based in cities, metropolitan areas and rural towns. Lotto NZ employs around 120 staff at its Auckland, Wellington and Christchurch offices plus the 1,217 outlets employ over 5,000 people who have earned over $50m in sales commission during the last financial year. Retailers receive seven per cent commission on their gross lottery sales. 4 2

01 Bookmaking was declared illegal in New Zealand in 1920 and from then until the introduction of the Totalisator Agency Board, (TAB) betting on racing was only available on-course. The New Zealand Racing Board is behind the racing and betting industry and is also the coordination point for TAB which runs all betting on racing and sport in the country. Its legacy stretches back to 1951 when the Totalisator Agency Board (TAB) was established as the sole betting operator in New Zealand. The Racing Board was established in 2003 under the Racing Act 2003 and merged the previous Racing Industry Board and the TAB. 02 The racing board derives its income from the revenue from TAB and around 80 per cent per dollar is returned to the player in winnings.

It is estimated that 80 per cent of the New Zealand adult population (about two million) play lotto games at least once a year and player contributions generate more than $100m every year in community funding through the Lottery Grants Board. In July 2012 the company re-launched its online sales channel My Lotto and created a mobile site that is accessible to a full range of smart phones and tablets. Since the re-launch it has grown steadily and currently there are around 260,000 players registered and sales through My Lotto account for 6.5 per cent of total sales ($58.7m). An email results service has also been developed to improve the service. Last year Lotto New Zealand gave $201.8m to the Lottery Grants Board after seeing record sales of $946.8m. The Grants Board supports around 3,000 organisations and projects. For every $1 spent – 55c is given back in prizes, 21c goes the Lottery Grants Board, 11c in taxes, 7c in retailer commission and 6c in operating costs.

G3-247 Report NeW ZeAlANd

Betting turnover of $30.2m was achieved during the World Cup which was TAB’s biggest ever betting event. There are three main areas – TAB which runs all betting on racing and sport in New Zealand; Trackside which is available on Sky Digital and Freeview and broadcasts racing and race wagering and the Races which is oncourse wagering. The racing board derives its income from the revenue from TAB and around 80 per cent per dollar is returned to the player in winnings.

The Lottery Grants Board allocates at least 42 per cent of the lottery profits it receives to three statutory bodies – Sport New Zealand, Creative New Zealand and New Zealand Film Commission. The remainder is distributed by distribution committees and the Minister of Internal Affairs as grant opportunities to individuals and groups.

horsE raciNg aNd bEttiNg Bookmaking was declared illegal in New Zealand in 1920 and from then until the introduction of the Totalisator Agency Board, (TAB) betting on racing was only available on-course. The New Zealand Racing Board is behind the racing and betting industry and is also the coordination point for TAB which runs all betting on racing and sport in the country. Its legacy stretches back to 1951 when the Totalisator Agency Board (TAB) was established as the sole betting operator in New Zealand. The Racing Board was established in 2003 under the Racing Act 2003 and merged the previous Racing Industry Board and the TAB.

TAB initiated the world’s first government run totalisator betting service back in 1951 and today there are several Tote bet types on offers from win, place and each way, to poker and All Up Bets. In 1996 it added fixed odds betting to its stable then the TAB began sports betting. Now 26 sporting codes are covered around the world. TAB has more than 146,000 TAB account holders and a nationwide presence with 640 TAB stores and retail outlets plus telephone, Touch Tone, digital television and text betting. It also manages the country’s only global online betting service via tab.co.nz. Online sales was up 23 per cent last year and betting via digital channels now accounts for 29 per cent of all turnover. The bets are enabled via internet via tab.co.nz, Mobile Touch and JetBet. In 2012 there were 188 million sales transactions processed by Jetbet which is around 3.6 million per week. There were also 458 million page views of tab.co.nz Retail sales via TAB were up to $807.9m and some 147 Self Service Terminals (SSTs) were installed in 2011/12 with 617 terminals now operating in 460 sites which is

67 per cent of the outlets. The SSTs now make up 25 per cent of total retail transactions. At PubTABs and ClubTABs this growth has been more significant and SSTS accounted for 35 per cent of sales at PubTABs and 39 per cent in ClubTABs. Sports FOB grew rapidly last year bolstered by the Rugby World Cup and Watch & Bet. Almost 75,000 sports betting options were offered and turnover rose to $244m. Australians bet around NZ$500m on racing in New Zealand. Online wagering turnover was also up by 21.6 per cent and Touch Tone was up 18.2 per cent. Betting was available on a total of 10,700 domestic and 48,000 imported races. Betting turnover of $30.2m was achieved during the World Cup which was TAB’s biggest ever betting event. Almost 13,000 new accounts were opened and almost half of the new accounts went on to bet again. There are three racing areas in New Zealand – thoroughbred racing (gallops), harness racing and greyhound racing. The racing industry generates around 1.3 per cent of the country’s GDP which is around $1.5bn per year and creates around 18,300 jobs. Betting turnover was up to $1.62bn with $139m returned to the racing industry. Of the turnover FOB turnover was $250m which is about 27 per cent of turnover and growing. Industry revenue amounted to $349.7m of which 82 per cent came from wagering, seven per cent from export, four per cent from racing service income, four per cent from gaming machine proceeds and three per cent from other services. The New Zealand thoroughbred industry is one of the most successful in the world. In 2011 the industry produced over 4,000 foals and exported 1,600 horses worth around $150m. 4 3

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It is said the high quality pasture, large open paddocks and mild climate encourages good breeding and today there around 70 commercial stud farms and hundreds of private breeding operations in the country. There are 65 Racing or Jockey Clubs with current licences in New Zealand and there are 52 racecourses from Ruakala in the north to Invercargill in the south. The horse racing sector is governed by the New Zealand Thoroughbred Racing (NZTR) which exists to regulate the sector and is run by a governing board of six directors. In 2012/13 thoroughbred race clubs held over 3,000 races at 358 meetings at 50 venues attended by approximately 487,000. In addition there were over 5,000 greyhound races and 2,675 harness races. Race clubs earned $5.4m in net sponsorship, $2.3m from catering and $5.8m from other income.

There are two major challenges facing the horse racing industry – the need to increase returns to stakeholders and the relevance of racing to future generations of New Zealanders. On-course wagering is now less than nine per cent of total New Zealand thoroughbred turnover. Total offcourse Tote turnover at all 52 tracks last year amounted to $294m, on-course Tote turnover amounted to $34.7m and total FOB (off and on course) came to $89.6m. There are two major challenges facing the horse racing industry – the need to increase returns to stakeholders and the relevance of racing to future generations of New Zealanders. The board has a new strategy over a five year period aimed at seeing returns to owners of 50 per cent, growing the surplus for distribution by $20.5m, growing prize money by $24m, lifting prize money to 80 per cent of NZTR distributions and stimulating $30m in infrastructure investment. In 2011 prize money bottomed to around $13,758, however, in financial year 2013 it rose to $15,687. One of the problems the industry faces is the increasing use of overseas bookmaker websites used by domestic and overseas punters to bet on New Zealand racing. The NZTR wants to bring in race fields legislation to counteract this and ban offshore bookmakers in their sector. Meanwhile, the number of weekly TAB customers has declined over the last 12 years from 175,000 back in 2000 to around 100,000 now. The sector needs to look at ways of attracting the younger market. One idea was the re-launch of nzracing.co.nz last year, 4 4

01 Introduced back in 1991, the slot machines or ‘pokies’ are today operated by charitable foundations and are mostly found in bars and clubs and hotels. New Zealand is one of only three countries worldwide which operate a Community Gaming Model. 02 Pokies account for around 46 per cent of gambling expenditure in New Zealand. Back in 1994 there were 8,160 gaming machines. This figure peaked in 2003 with 25,221.

which now accurately renders to mobile devices and annual visitor numbers rose from 3.17 million in 2012 to 3.37 million last year. The NZTR also wants to tap into the Australian market, which with a population of 23.1 million, is a lucrative option. At the moment Australian totalisator sales on New Zealand Thoroughbred races is around $364.7m. The Greyhound Racing New Zealand (GRNZ) is the trade name of the association which monitors the greyhound racing sector. It’s a traditional sport and the first hares were brought into the country in 1868. In 1908 bookmakers betting on such racing were banned under an amendment to the gaming act and the National Coursing Association was formed that year to unite greyhound

racing clubs. In 1981 they were granted access to full offsite totalisator betting and the TAB which raised the profile of the sport. Today there are 11 greyhound racing tracks.

thE pokiEs Introduced back in 1991, the slot machines or ‘pokies’ are today operated by charitable foundations and are mostly found in bars and clubs and hotels. New Zealand is one of only three countries worldwide which operate a Community Gaming Model. Today, pokies account for around 46 per cent of gambling expenditure in New Zealand. Back in 1994 there were 8,160 gaming machines. This figure peaked in 2003 with 25,221. Currently there are a total of 1,343 gaming venues

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Pub and Club gambling for 2013 fell by three per cent from $854m to $826.3m with fewer licence holders, gambling venues and gaming machines compared to 12 months earlier. In the April to June 2013 quarter non casino GM spending by society amounted to $178m whilst club spending amount to $27.4m with a total of $206m. The gambling sector in New Zealand is looked after by the Department of Internal Affairs casino and non-casino services. The Gambling Compliance group audits and investigates non casino gaming activities, licences all non casino gaming and issues certificates of approval for casino employees. The casino inspectorate regulates casino activities. The sector is governed by the Gambling Act 2003 and the Crown Entities Act 2004. The Gambling Act replaced the Gaming and Lotteries Act 1977 and the Casino Control Act 1990 and created a more harmonised framework for the whole gaming industry. The Gambling Act 2003 includes the following: l

l l

No more casino venue licences can be granted under the Act although existing casino licences can be renewed. No overseas gambling advertisements can be published in New Zealand. The Act divides gambling into six classes

1. Class 1 gambling (no licence required) – not for commercial gain or profit and includes total prize value awarded of $500 maximum and $500 maximum turnover.

gambliNg ExpENditurE statistics 2011-2012 typE

yEar 2011

yEar 2012

$273m $1,261m $1,533

$286m $1,336m $1,622m

$404m $521m $926m

$419m $529m $948m

$856m $8,365m $9,222m

$854m $8,391m $9,245m

$471m

$509m

$2,005m

$2,068

NZ RACING BOARD (TAB) Expenditure Dividends Turnover

NZ LOTTERIES COMMISSION with 17,320 gaming machines. Of this total, Auckland City region has the most with a 6.8 per cent share in the number of sites and seven per cent in the number of machines followed by North Shore City and Wellington City. Total Gaming Machine Proceeds (GMP) for the September 2013 quarter was $2.068m divided between Non-Clubs with $178m, Sports Clubs $4.1m, Chartered Clubs with $16.3m and RSA’s with $6.9m. This was three per cent more than the previous year.

Expenditure Prizes Turnover

GAMING MACHINES Expenditure Prizes Turnover

CASINOS Expenditure

An estimated $648m was distributed to various community purposes from proceeds and non casino gaming machines trusts raised an estimated $314.2m for authorised purposes.

TOTAL Expenditure

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2. Class 2 gambling (no licence required) – this includes games with maximum $5,000 payout or turnover of less than $25,000 for more than one game.

licences required). Racing or sports betting can be operated in casinos via TAB outlets in agreement with operators. Casino licences are given for 25 years. Players must 20 years or over. Existing casinos under the Act are not permitted to increase their gambling opportunities or provide internet gambling.

3. Class 3 gambling (class 3 operators licence required) – includes total prize value of $5,000 maximum or turnover of less than $25,000

6. Gambling conducted by the Lotteries Commission. 4. Class 4 gambling (class 4 operators and venue licences required) – slot machines outside of casinos and includes gambling not classified by another class and those under the Racing Act 2003. There is a limit to the number of gaming machines at Class 4 venues – 18 gaming machines maximum (for licences issued before 2001) and maximum nine (licences issued after 2001). Some clubs are given licences for up to 30 machines. Players can be 18 years or over. All Class 4 machines must be connected to Electronic Monitoring System (EMS) 5. Casino gambling (casino operators and venue 4 6

l

l l

Meanwhile the Act also authorises private gambling, sales promotion schemes and gambling authorised under the Racing Act 2003. A gambling commission is established under the Act plus a New Zealand Lotteries Commission The Gambling Act prohibits remote interactive gambling, but lottery sales promotions are excluded from this ban plus the Lotteries Commission and New Zealand Racing Board can also conduct approved forms of remote interactive gambling.

01 There are strict licensing controls to limit the growth of gambling and operator and venue licences for Class 4 can only be operated by corporate societies. Net proceeds must be given to authorised purposes including charitable groups, non commercial purposes and promoting, controlling and conducting race meetings. 02 Jackpot advertising restrictions were introduced some years ago and since 2005 all new machines after this date must be pop up enabled which show an end of session feature to occur after 30 minutes of continuous play. 03 Since 2009 all machines have Player Information Displays to inform players how long they have played and when to take a break.

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licENsiNg FEEs pEr sEctor

sector

type

Fee

Lotteries

Prizes not exceeding $5,000

0

Class 3

New or renewal (not exceeding $50,000 in prizes) New or renewal (exceeding $50,000 in prizes)

$102 $722

Class 4 Operators licence application

New (category A) New (category B) Renewal (category A) Renewal (category B)

$4,158 $4,158 $1,299 $2,599

Class 4 Operators annual fee

Category B

$4,153

Class 4 Venue application fee

New (category A) New (category B) Renewal (category A) Renewal (category B)

$799 $1,039 $129 $195

Class 4 venue annual fee

Per gaming machine

$434

Casino operators licence application

New Amendment Temporary authority

$347,555 $1,022 $23,511

Casino venue agreement application

New

$23,511

date must be pop up enabled which show an end of session feature to occur after 30 minutes of continuous play. Since 2009 all machines have Player Information Displays to inform players how long they have played and when to take a break. Societies that operate gaming machines fall into broad categories – clubs that operate gaming machines in their own premises and public societies that operate gaming machines in commercial venues. All Class 4 machines in pubs and clubs must be connected to EMS which monitors various information including the amount of money gambled, the amount required to be banked, the location and number of machines, the gaming usage and any faults and tampering. The Gambling Regulations 2006 established a monitoring fee for each gaming machine connected to EMS and this is currently $1.38 per day. There is also a $51.50 per venue per month telecommunications charge. There are strict licensing controls to limit the growth of gambling and operator and venue licences for Class 4 can only be operated by corporate societies. Net proceeds must be given to authorised purposes including charitable groups, non commercial purposes and promoting, controlling and conducting race meetings. Jackpot advertising restrictions were introduced some years ago and since 2005 all new machines after this

The New Zealand Community Trust (NZCT) operates around 2,200 gaming machines in 161 venues and saw gross proceeds of $90m last year with net proceeds of $36m. All gaming machine societies are required to allocate their profits from gaming machines to authorised purposes. Clubs tend to apply this to the own purposes and their own club operating costs.

required to pay Goods and Services Tax (GST). Everything left (net proceeds) must then be allocated to authorised purposes and must be at least 37.12 per cent of GST exclusive gaming machine revenue. In 2011 some $525m was the total proceeds from gaming machines from public societies and $214m was allocated to authorised purposes. The non-club societies sector is governed by three large groups - Lion Foundation, NZCT and Pub Charity which between them operate around 50 per cent of the machines. Of funds raised for the community in 2012 via gaming these three groups between them raised around $121m (45 per cent) of the net proceeds. The New Zealand Community Trust (NZCT) operates around 2,200 gaming machines in 161 venues and saw gross proceeds of $90m last year with net proceeds of $36m. The company was incorporated in 1998 and is one of the largest gaming trusts in the country. Some 26 per cent of venues are located in urban areas and these generate around 38 per cent of gaming proceeds whilst the remaining 74 per cent are local in rural and provincial towns generating 62 per cent of annual GMP.

All gaming machine societies pay 20 per cent in Gaming Machine Duty and 1.48 per cent in Problem Gambling Levy from their revenue after prizes are paid out.

In 2012 the company distributed $37.3m to sports and community organisations (around 40 per cent of GMP).

Societies that exceed the standard threshold are

The Lion Foundation is one of the oldest charitable 4 7

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divisioN oF vENEus/gamiNg machiNEs by opErators 2012 catEgory

total licENsEd total vENuEs sociEtiEs

total gamiNg machiNEs

avEragE gamiNg machiNEs pEr vENuE

38 8

1,025 8

13,622 89

13.29 11.13

Club chartered Club RSA Club Sports Club Working Mens

144 84 72 1

146 84 79 1

1,979 1,021 591 18

13.55 12.15 7.48 18

total

347

1,343

17,320

12.90

NoN club Multi Venue Single Venue club

trusts and in the last 27 years has returned over $700m back to the community. Last year the company approved over 4,500 grants and gave $53m back to good causes. The Lion Foundation today operates over 3,000 gaming machines in 222 venues with gross proceeds of $132m and net proceeds of $56m. Meanwhile, the Pub Charity was formed in 1987 by the then named Hotel Association of New Zealand (now 4 8

Hospitality Organisation of New Zealand). It was the first to operate gaming machines in the country. Today they operate 1,877 gaming machines in 162 venues with gross proceeds of $75m and net proceeds of $25.7m. Pub Charity has raised over $350m over its history for charities

casiNos The Department of Internal Affairs looks after the casino department and the Gambling Compliance Group maintains a team of inspectors in each casino. The

01 SkyCity recently saw the passing of the New Zealand International Convention Centre legislation in November last year which will see SkyCity now invest $402m to design, build and operate the New Zealand International Convention Centre. 02 “These concessions will become fully operative once SkyCity enters into a binding building works contract for the NZICC which is expected to be in the second half of 2014.” Nigel Morrison, SkyCity Chief Executive

inspectors role is to handle any complaints and ensure the gambling complies with the Gambling Act 2003 whilst checking equipment and operating standards. Casino venue licences can be renewed at the end of the current licence period and last for 25 years however existing casinos cannot increase the opportunities for casino gambling or operate internet gaming and no new licences can be issued. The main casino operator is SkyCity Entertainment Group Limited which is an entertainment and gaming business group and they operate four casinos in New Zealand and two in Australia alongside industry leading restaurants and bars, luxury hotels and convention centres.

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The company began business back in 1996 and opened the Auckland casino complex the same year. This was followed by Adelaide Casino in 2000, SKyCity Queenstown in 2000 followed by Hamilton in 2002, Christchurch in 2004 and Darwin. The group is divided into SKyCity Auckland which operates the casino, hotels and convention centre and Sky Tower whilst SkyCity NZ operates the remaining three casinos in Hamilton, Queenstown and Christchurch.

The Department of Internal Affairs oversees casinos and the Gambling Compliance Group maintains a team of inspectors in each casino.

are three VIP areas – one called EIGHT which is a members only area, the Platinum Room for VIP gaming machine salon for high value players and Platinum VIP. SKYCITY QUEENSTOWN opened in 2000 and is a joint venture with Skyline Enterprises Limited (60/40 per cent share) of Queenstown Casinos Limited and has a 25 year licence. It is open from 12 noon to 4am daily and features 86 slots and eight tables. VIP gaming is available in the Horizon Room.

extension of TITO technology. Total receipts for 2013 by SkyCity amounted to $970m with total group revenues of $859m and profits of $127m. Part of these revenues were attributed to SkyCty Auckland with revenues of $418m whilst SKyCity NZ saw revenues of $54m.

Nigel Morrison, SkyCity Chief Executive said: “These concessions will become fully operative once SkyCity enters into a binding building works contract for the NZICC which is expected to be in the second half of 2014.” The project is expected to take three years and will provide a world class convention centre in Auckland driving jobs and tourism. The project is fully funded by SkyCity.

Meanwhile SkyCity recently saw the passing of the New Zealand International Convention Centre legislation in November last year which will see SkyCity now invest $402m to design, build and operate the New Zealand International Convention Centre.

There are six casinos in New Zealand. These are:

In return for this investment this also means SkyCity’s Auckland Casino licence has now been extended to 2048 and this ‘deal’ also provides for an increase in gaming product of an additional 230 slots and 40 table games whilst a further 12 gaming tables that can each be substituted for 20 automated table game terminals plus the introduction of cashless card based gaming and the

SKYCITY AUCKLAND is open 24/7 and offers 1,600 slots and 100 table games. SkyCity has a 25 year licence for this casino from 1996 and it is wholly owned by SkyCity Entertainment. It was the second casino to open in New Zealand and is located at the base of the Sky Tower whilst other facilities include a 700 seat theatre, convention centres, bars, restaurants and hotels. There

SKYCITY HAMILTON was opened in 2002 and has a 25 year licence and since 2005 it is a wholly owned SkyCity casino. Prior to that the casino was a joint venture partnership (70 per cent) with Perry Developments (30 per cent). It is situated behind the former Chief Post Office in a building on the banks of the Waikato River. Floor to ceiling glass gives players a spectacular view and there are over 300 slots and 23 gaming tables. There is also the poker zone with two poker tables and tournaments. The Macau Room is for higher table limits. SKYCITY CHRISTCHURCH was New Zealand’s first casino which opened in 1994. In 2004 SkyCity acquired Aspinall (NZ) Limited which held a 40.5 per cent interest in Christchurch Casinos Limited which in 2008 was then increased to 45.9 per cent. The other major shareholder is SkyLine Enterprises Limited which opposed the acquisition saying it would now give SKyCity majority control over the casinos in the country. But the 4 9

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deal was approved. The casino currently has 36 tables and 500 slots and the licence runs until 2019 and it is located in the Victoria Street district. Through Christchurch Casino SKyCity has an effective 15 per cent interest in Dunedin Casino Limited which runs until 2024. The casino is operated by a subsidiary of Dunedin Casino Limited.

dropped by around $178m mainly through a reduction in the number of gaming venues. The lotteries, for instance, has grown by $150m in the same period through the introduction of new games and greater jackpots. However one issue is that the pokies sector cannot advertise or promote their business like the lottery.

WHARF CASINO was operated by Otago Casinos Limited and was purchased for $5m by SkyCity in May last year. The Wharf Casino has 86 slots and six gaming tables and is centrally located in Queenstown’s business district. It closed in December last year for a refurbishment and also houses the Waterfront Bar and Bistro.

The gaming landscape is changing and so is the growing prevalence of internet gaming.

DUNEDIN CASINO offers opulent gaming rooms under a glass dome roof. In 1999 the former hotel designed by Italian architect Louis Boldini back in 1883, underwent a large restoration and the casino emerged. Today it sits in the heart of the Southern Cross Hotel complex and it offers a gaming area with 180 slots.

In September last year Internal Affairs Minister Chris Tremain released a public consultation document on proposals in a bid to improve the framework for Class 4 gambling. The proposals saw 114 submissions from Class 4 societies, venues and councils with further ideas.

chaNgEs ahEad

The main idea behind the proposals is to:

Over the last five years expenditure on the pokies has 5 0

Sports betting has also grown by over $30m through the addition of more sports betting options and the use of internet gambling. Casino gambling is down by $34m.

01 At the moment the community must distribute a minimum rate of 37.12 per cent to community projects. The remainder is divided between 25 per cent in gaming duty and levies, two per cent in licensing and machine fees, 16 per cent maximum venue payments and 20 per cent expenses. 02 There are various options to increase this distribution which includes an increase of between 40 and 43 per cent rate with staggered rates for the following years.

1. Deliver more funding for the community – looking at ways to increase the minimum rate of return in order to increase financial benefits to the community. 2. Lower compliance costs – ensuring that the money available to be returned to community purposes is maximised by developing a more efficient and effective venue compensation model. 3. Increase transparency and compliance of grant infor-

G3-247 Report NeW ZeAlANd

NEw ZEalaNd: vital statistics Capital: Wellington Population: 4,365,113 Land Area: 267,710 sq.km Currency: New Zealand dollar (NZ$) Median age: 37.4 years Languages: English, official (91.2%), Maori (3.9%), Samoan (21.%) Ethnic Groups: European (57%), Asian (8%), Maori (7%), Pacific Islander (4.6%), mixed (9.7%) Government: Parliamentary democracy and a Commonwealth realm Chief of State: Queen Elizabeth represented by Governor General Lt Gen Sir Jeffrey Mateparae Head of Government: Prime Minister John Key Elections: The Monarch is hereditary. Governor General appointed by the Monarch. Following legislative elections leader of the majority party appointed Prime Minister.

There is a lot of pressure for societies to minimise operating costs and this can cause tension with venues owners that are operating a profit making business. mation – to make the grant making decisions for Class 4 societies and net proceeds committees more transparent. The aim is to assist the public in assessing trends in grant making decisions and in the development of policy advice. 4. Enhance protections for problem gamblers – this arises from the new regulation making power contained within the Gambling Harm Reduction Amendment Act which came into force in September 2013. Looks at ways and amounts local distribution can play. Class 4 clubs such as sporting clubs or cosmopolitan

clubs mainly apply the money raised from gambling to the club’s purpose. Non-club Class 4 operators (societies) which have slots in pubs and bars mainly distribute proceeds to authorised purposes. At the moment the community must distribute a minimum rate of 37.12 per cent to community projects. The remainder is divided between 25 per cent in gaming duty and levies, two per cent in licensing and machine fees, 16 per cent maximum venue payments and 20 per cent expenses. There are various options to increase this distribution which includes an increase of between 40 and 43 per cent rate with staggered rates for the following years. An additional proposal to amend the current venue costs payment system is also being considered. At the moment the Act permits societies to reimburse venues for the actual costs the venues incur within limits imposed by the Gazette notice. The limits were set in 2004 and amended in 2008 and at the moment Class 4 venue societies must not incur costs of i) Limit A - more than 60c per gaming machine per

hour of gaming machine operation; ii) Limit B – more than $75 per gaming machine per week; iii) Limit C – more than $800 per venue per week or iv) Limit D – more than 16 per cent of gaming machine profits in any 12 month period. There is a lot of pressure for societies to minimise operating costs and this can cause tension with venues owner that are operating a profit making business. There are several options under consideration. One is to remain with the current system another is to issue a payment per number of machines to cover costs whilst a third option is a commission based venue payment system. Trevor Henry, Senior Communications Adviser at the DIA said: “The department commended submitters for the effort put into the submissions and the detailed information that many provided in giving an overall view of the state of the Class 4 sector and the potential impacts of the various proposals. “The department is now analysing the submissions and will advise the Minister of Internal Affairs on potential 5 1

G3-247 Report NeW ZeAlANd

GAMING MACHINES: 17,320 (Class 4) MACHINE REVENUE: $826.3m (2013) GAMING VENUES: 1,343 LOTTERY: Lotto New Zealand LOTTERY RETAILERS: 1,217 outlets LOTTERY REVENUE: NZ$946.8m (sales) ONLINE GAMING: Prohibited TOTAL TAB REVENUE: NZ$286m BETTING ACCOUNTS: 146,000 TAB BETTING OUTLETS: 640 HORSE RACETRACKS: 52 HORSE RACING: $417m (total on, off course and FOB turnover) GREYHOUND RACETRACKS: 11 CASINOS: 6 CASINO SLOTS: 2,826 CASINO TABLES: 199 MAIN OPERATORS: SkyCity (4) CASINO REVENUE: $509m TOTAL GGR: $2.1bn

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There has been widespread concern over venues in poor areas and changes in the law now mean the territorial authorities can manage the concentration of venues in highly deprived areas. changes and the next steps in the process. If changes proceed, amending the minimum rate of return and introducing local distribution regulations will likely happen first as these can be made under existing regulation making provisions in the Gambling Act 2003. “The proposals to increase the transparency of grant information and improve the venue payments system will take longer to progress as they require legislative amendments. The department proposes to work with the sector on the venue payments proposal to ensure that any changes are well designed.”

Meanwhile the department has started a review of the Gambling Harm Prevention and Minimisation (HPM) regulations focussing on harm associated with pokies in pubs and clubs. The Gambling (Harm Reduction) Amendment Act was passed in September last year and created a new regulation making power that could require the use of pre commitment, player tracking or other harm minimisation devices, technology or systems associated with Class 4 gaming machines. The review will now look at the feasibility, cost and benefits of introducing such systems along with other ideas and technology. The act also enabled venues to re-locate within their district and retain 18 machines in some circumstances. There has been widespread concern over venues in poor areas and changes in the law now mean the territorial authorities can manage the concentration of venues in highly deprived areas. The situation came to light last year when the Galaxy Bar in South Auckland had its licence revoked by the depart-

G3-247 Report NeW ZeAlANd

“Other than the loss of infrastructure the main reason for the perceived decline in the availability of contestable funds is the increase in Class 4 operators licensed with authorised purposes that benefit special interest groups.” ment in 2012 because the venue was used mainly for the purpose of playing slots in what is a deprived area. The new law means venues can relocate and retain the number of machines they operate. This is subject to the agreement of the venue, society and the TA. The bill was proposed by Maori Party member Te Ururoa Flavell and as such the bill is often referred to as the Flavell Bill. The bill also slightly increases the amount of pokie machine returns that go back to the communities. He said: “Pokie machines are six times

more likely to be in poor areas than they are in wealthy ones and about a third of moderate risk gamblers are Maori. In effect we are talking about a system which transfers wealth from poor areas to wealthy ones.” Some operators are concerned about some of the proposals. NZCT for instance said: “NZCT is concerned the proposed changes around return to AP and venue payments will significantly impact on our ability to distribute funds to provincial and rural New Zealand. “NZCT operates a range of high and lower yielding gaming venues. The majority of higher yielding venues are found in urban areas whilst lower performing venues are usually located in rural or provincial centres. “The current legislative and regulatory framework enables NZCT to retain lower yielding venues so that the communities where these venues operate can benefit from gaming grants. Any increases imposed on NZCT’s cost structure, and/or a material economic downturn and/or a loss of high yielding venues will reduce our ability to reach the minimum distribution requirements. This could in turn impact on our ability to host lower yielding gaming venues in provincial New Zealand.”

Meanwhile, Pub Charity has also responded to the public consultation and says it supports an increase in the minimum return in Year one to 40 per cent but warns further increases in minimum required returns could result in the closure of smaller venues and therefore less money returned to the community. They said: “The main influence on a venue or society’s maximum rate of return is actually the level of gaming machine profit per venue and machine. “Other than the loss of infrastructure the main reason for the perceived decline in the availability of contestable funds is the increase in class 4 operators licensed with authorised purposes that benefit special interest groups.” Meanwhile there are further changes expected. Chris Tremain also planned to amend legislation to enable licences to be issued for a longer period as an incentive for societies and venues; remove the requirement that information about grants be published in newspapers, enable auditing of management companies; strengthen the conflict of interest provisions in the Gambling Act and clarify the licence suspension powers. 5 3

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moves to control digital currencies The Department of Economic Development recently announced that the Isle of Man intends to take specific actions aimed at helping protect businesses and customers utilising digital currencies and provide an environment for high-quality businesses in this rapidly emerging field who wish to operate there. ‘The Isle of Man recognises both the risks and opportunities presented by digital and virtual currencies,” said The Department’s Director of EBusiness Development Peter Greenhill stated. “We are conscious of issues that have surrounded these activities but also can identify serious and credible entrants to the market wishing to explore this innovative technology. Therefore, the Government has instructed the relevant departments and statutory bodies to ensure there is a regime that promotes both business opportunities but also applies appropriate anti-money laundering requirements. “Our stance is intended to welcome those who can meet the necessary standards while also preserving the Island’s good reputation as a financial centre. We will work with the Isle of Man Financial Supervision Commission, Department of Home Affairs and industry to ensure a fair and appropriate regime is implemented. This is not at this stage expected to embrace a full prudential suite of requirements, so consumers will need to be aware of this when making their decisions. “While it will take a period of time to instigate, it is a clear demonstration of the Isle of Man’s commitment to keep abreast with market developments but also maintain its international responsibilities. We anticipate that this market will develop and change rapidly and, as a result, we will keep market changes under review and with a view to consider future regulatory regimes as required. Of course, if any business were to 5 4

undertake activities that are regulated under existing regulations, we will expect them to comply fully.’ The Minister for Economic Development John Shimmin MHK commented: “I welcome this move to create a framework for the regulation of digital currencies. The Isle of Man is synonymous not only with innovation, but for a regulatory environment that is both effective and pragmatic. “With this announcement the Isle of Man reinforces its status as a jurisdiction that welcomes well-controlled and compliant businesses while sending a clear message to those who would seek to operate outside the law that we are open for good business only. “We will work with the business community in the coming months to ensure that a proportionate and appropriate regime is implemented that meets international standards. We anticipate other jurisdictions will follow the Isle of Man’s lead.” In an interview with Mr. Greenhill, G3 asked the IOM’s Director of E-Business to directly address the issues surrounding digital currencies and explain what measures are being taken.

What is the Isle of Man doing? We are looking to recognise digital currencies as a property, rather than a currency, and apply the appropriate anti-money laundering controls that

Peter Greenhill, CEO, e-Gaming Development at Isle of Man Department of Economic Development. Peter Greenhill moved to the Isle of Man in July 2013 to take up the position of CEO of e-Gaming for the Isle of Man Government’s Department of Economic Development. Following a very successful career in banking and banking systems with Credit Lyonnais, GE and Unisys, Peter has spent over 17 years in executive management positions in the gaming sector. He has provided solutions to lotteries worldwide whilst with EssNet AB and Betex and to the major European casino and betting operators whilst MD of both Cyberview UK and TCSJohnHuxley Europe.

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one would expect of a responsible jurisdiction. To ignore the problem of such potential criminal activity is to be negligent of the risks.

Are digital currencies associated with crime and money laundering? There have been a number of instances where digital currencies have been used to facilitate money laundering or have been the subject of other criminal activity. The Isle of Man recognises the risks as well as the potential of this recent innovation. As a responsible international partner, we want to ensure that crime is kept out of the Isle of Man and that can only be achieved by ensuring the appropriate anti-money laundering protections exist.

Why is the Isle of Man introducing anti-money laundering controls? We are receiving enquiries from all over the world. These are primarily from very credible start-up businesses who want to operate in a controlled manner in a well-respected jurisdiction. Other, less well-funded start-ups are looking to find any home for their business. Currently the proposed activities in digital currencies fall outside of anti-money laundering legislation and other forms of regulation and this poses both risks and opportunities. The absence of regulation leaves a window where business could trade from the Isle of Man yet undertake business practices which are at odds with the Island’s stance on antimoney laundering and crime. We do not feel that this is acceptable or responsible.

Why isn’t the Isle of Man introducing a full prudential regulatory regime if it is concerned? Industry innovation is moving at a tremendous pace and introducing a full regulatory regime at

this time would be both costly and may well be out of date before the rules are enacted. Further, international standards or restrictions may be introduced as the market develops. Given the relatively small size of the industry (in comparison with main stream finance sector) we have decided to consider a proportionate anti-money laundering regime which can be implemented in a timely manner, protects the Isle of Man’s reputation and fights crime.

“We are receiving enquiries from all over the world. These are primarily from very credible start-up businesses who want to operate in a controlled manner in a well-respected jurisdiction.” Is the Isle of Man regulating digital currencies? No, it is intending to include crypto & digital currencies under the Proceeds of Crime Act 2008 and the Designated Business (Registration and Oversight) Bill 2014 to ensure that the activities undertaken are subject to the anti-money laundering legislation. The same registration and oversight regime that will be applicable to other designated businesses will then apply to digital currency businesses.

sight regime will ultimately mean that a business in this area will need to register with the Financial Supervision Commission and submit to appropriate reviews to ensure that the business is compliant with the anti-money laundering requirements, is well managed and is run by appropriately skilled and knowledgeable people.

What will the regime look like? To a large degree the anti-money laundering requirements are already enshrined in legislation. The Financial Supervision Commission will review the necessary activity to determine whether that legislation has been applied appropriately and proportionately by the business concerned in line with a risk based approach.

When will the rules start to apply? There will be two stages. First there will be the inclusion of digital currency activity in Schedule 4 of the Proceeds of Crime Act 2008, which will occur later in 2014. The effect of this will be that such businesses will need to comply with the Anti-Money Laundering Code. Second will be the inclusion of digital currency activity in the Designated Business (Registration and Oversight) Bill 2014 which is still subject to Tynwald approval and subsequent Royal Assent. It is expected that the Bill will be enacted during the first half of 2015. When enacted digital currency businesses will be required to register with the Financial Supervision Commission who will become responsible for oversight of their antimoney laundering compliance.

What are the standards that the Isle of Man is looking to introduce?

Will companies actually be given a licence to operate by the Financial Supervision Commission?

The anti-money laundering registration and over-

No, designated businesses registered under the 5 5

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Designated Business (Registration and Oversight) Bill 2014 will not obtain a financial services licence but they will be registered to conduct designated business.

Will banks on the Isle of Man take business from these new start-up businesses involved with digital currencies? Interested companies should approach local banks to discuss their specific requirements.

Can existing businesses accept payments now in digital currencies? Companies need to take their own advice on this matter. What is vital to the Isle of Man is that the consumer is protected at all times.

Is VAT chargeable on the Isle of Man on payments made with digital currencies? The IOM is in a customs union with the UK and therefore the UK rules apply in respect of VAT. The UK has already ruled that the activities of mining a digital currency, exchanging it or charg-

Gaming companies are moving towards faster less costly payment environments, and digtial currencies offer the same service, but without the potential for charge-backs. Operators recognise that this is the way things should be moving. ing for related transactions will not be subject to VAT. This is in line with Article 135(1)(d) of the EU VAT Directive.

What would the benefits be to the Isle of Man economy of accepting these businesses? The Isle of Man recognises innovation in the Financial Services and e-Business sectors and is therefore keen to welcome legitimate Digital Currency businesses provided that they adhere to appropriate controls. These businesses will bring jobs and income to the Island and create enhanced career opportunities.

Would any placement of digital currencies into an exchange registered on the Isle of Man be protected as it is with a deposit in a bank? No, the placement of Digital Currency into an exchange is not a deposit, and the deposit protection scheme does not apply. Therefore, consumer discretion should be exercised due to the risk of loss or failure of the businesses.

Will minimum standards be set for the security systems that these exchanges implement? No, but as international standards are developing this may be added into any regime in the future.

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What are the IOM’s goals in allowing operators to offer digital currencies to their players? We ultimately need to protect the customer and keep crime out of the island. Our job is to make sure the Anti-Money Laundering Directive is fully implemented, we adhere to anti-terrorism legislation, and then we need to look at individuals and businesses themselves, ensuring they are correctly run and the rules are fully implemented. Users of digital currency on the sites of IOM licensed operators will have been through KYC checks (Know Your Customer), and will then have the option to use digital currencies as they would any other currency on the site.

The ability of players to transfer money from one location to another without incurring banking charges and currency exchange penalties is highly appealing, but there are also risks... There is a case for buyer beware with digital currency, in regards to how the value of the currency might change with a fluctuation in the price from one gaming period to the next. With elements like this, terms and conditions have to be made completly clear to players from the outset.

Why be a first-mover in offering digital currencies to players? We want to attract high quality businesses and allow those companies to grow in a controlled manner. Yes, we are one of the first movers in this area, and so it is vital that it be done in a controlled manner. We have numerous companies

talking to us already and there’s been a lot of interest, both from gaming and non-gaming companies.

What are the benefits to the operators of offering digital currencies to players? Gaming companies are moving towards faster less costly payment environments, and digtial currencies offer the same service, but without the potential for charge-backs. Operators recognise that as a service for players, a value transfer that is both instantaneous and almost free is the way things should be moving.

How long will it before before operators are able to implement digital currencies with an IOM licence? At present we are undertaking a consultation period with the industry on the island, as they are very able and willing to participate in that process. We are also being approached by other jurisdictions looking at digital currency adoption, but for the most part, the processes will take those jurisdictions a long time to come into force. Bigger jurisdictions have lots of things in the way, whereas here on the Isle of Man, we can pull the right people together quickly and have taken the necessary steps already.

Will players be more vulnerable if using digital currencies? I would expect that using digital currencies with a licensed operator on IOM, players will be in exactly the same position as with any other payment option. However, outside of gaming, that is something that they need to look to themselves.

Venetian Macao 18-20 November 2014

By Asia

for the world

MGS is back and even better!

Feature rich

Now’s the time to book your attendance at MGS 2014 18th – 20th November. MGS is the only show that is truly representative of the Asian gaming industry. And the only event to earn the title ‘by Asia, for the World’.

Visit the highly acclaimed Slot Experience Center. Gain invaluable knowledge at the Macao Gaming Summit. Promote your brands on MGSTV.

Come and see the entire gaming industry Gaming Equipment & Accessories. Gaming Promoters & VIP Clubs. Casino Fixtures & Fittings. Promotional Services & Memorabilia. Food & Beverage. Entertainment & Performance.

The best networking in Asia Invaluable business networking opportunities. Get to know potential business partners in a relaxed and casual atmosphere.

And we will even help pay your way! The Macao SAR Government is once again offering attractive subsidies to qualified buyers from air fares to hotel accommodation, making MGS the key annual meeting hub for casino procurement teams.

MGS means business Exhibiting at MGS makes fantastic business sense. Reach out to casinos, integrated resorts, regulators and gaming affiliated businesses. 83% of MGS visitors are either decision makers or have direct input to purchasing decisions. An overwhelming majority (99%) said they would be returning to MGS in 2014. Event Organiser

For more information and to book your place at Asia’s ‘must attend’ gaming exhibition contact [email protected], visit MacaoGamingShow.com or telephone +853 6363 0080 or +852 6329 6008 PRC hotline: +86 180 6387 4408

Event Co-Organisers

Event Contractor

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don’t gamble with global online e-commerce spend The arrival of industry regulation and the widespread usage of alternative payment methods (APMs) in e-commerce means APMs should underpin any growth strategy. Recent Worldpay research found that 43 per cent of global online e-commerce spend is now made using APMs and this figure varies significantly by market, especially within gambling. To achieve success, gambling operators need to understand both gambling specific behaviours, as well as anticipating and capitalising on any shifts in the broader digital consumer trends. thE altErNativE paymENts laNdscapE Most gambling companies are already familiar with APMs (any payment type that is not a credit or debit card). Historically, local bank and card issuer restrictions meant operators were almost obliged to adopt APMs in order to support any international growth aspirations they may have. To achieve global success, one of the fundamental decisions operators must get right is the choice of payment methods to offer in each of the countries they operate. Offering players a choice of locally preferred payment methods and the ability to pay in their own currency directly impacts the volume of successful transactions and ultimately player conversions. In addition, with the right payment mix of cards and APMs, operators can often achieve lower fraud risk than with cards alone. Locally recognised payment methods are particularly beneficial when converting consumers who failed to deposit using cards or in markets or player demographics where card penetration is low. At present, cards and e-wallets are the main payment types gambling operators need to provide, though there are notable differences by region and even individual country. The popularity of ewallets is growing throughout e-commerce generally and it is considered to be underpinning the wider growth in APMs use. E-wallets now represent five of the top 10 alternative payment methods available, according to recent research from Worldpay. 5 8

As well as being increasingly popular in e-commerce generally, particularly with younger users, the adoption of e-wallets in gambling has been driven by a number of factors such as ease of use, the ability to receive winnings payouts and the fact that e-wallet supported mobile much earlier than other APMs. Skrill (formerly Moneybookers) is already well established in many markets and has been joined by regionally focused products such as Webmoney, Yandex and payment heavyweight PayPal in regulated markets such as the UK. Despite the broader increasing popularity of APMs, many of the major global providers, such as AliPay, TenPay, Konbini and Klarna, don’t support online gambling at present. Three of these companies are forecast to have the highest growth rates of all alternative payment method providers. While there is no suggestion that any of these companies will permit gambling in the future, the potential opportunity if they did would clearly be significant.

rEgioNal diFFErENcEs iN paymENts Four country segments are emerging in the gambling payment space based on APM share of spend and market growth - “card growers”, “alternative future”, “card centric” and “alternative ready”. Western European countries are more card-centric in general with markets such as the UK and Ireland having high card penetration and much lower APM share than other regions. Regulation in these markets means banks are more open to processing gambling transactions, meaning higher card acceptance rates for operators and reduced

Alan Watson is VP Gambling at leading international payments company Worldpay, where he is responsible for developing the vertical strategy. Before joining Worldpay, Alan was Head of Sportsbook at Sportingbet Plc, where he oversaw the sports betting product strategy and development across both desktop and mobile devices. Prior to this, Alan worked for Monitor Group, a global strategy consulting firm, where he advised on Marketing and Corporate Strategy projects. Alan holds a Master’s Degree in Engineering from Cambridge University.

Many of the major global providers, such as AliPay, TenPay, Konbini and Klarna, don’t support online gambling. Three of these companies are forecast to have the highest growth rates of all alternative payment method providers.

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need for players to seek alternatives.

ate confirmation of successful transactions.

AstroPay and Boleto Bancario Multibanco.

In “Card Grower” markets, cards account for most transactions but are increasingly supported by regionally relevant APMS. In European markets such as Spain and Italy this usually means e-wallets, while in Australia real-time bank transfers such as Poli and BPay are commonplace.

There are many factors influencing the behaviours in “Alternative Future” countries, where APMs account for significant share already and are expected to see high growth. Broader security concerns and unwillingness to enter card details online in some Eastern European countries mean the correct mix of APMs is crucial. In Poland, for example, this means the local Bank Transfer method Przelewy24 (P24) is essential.

Most pre-pay products have a funding limit and some will not allow multiple cards/vouchers to fund a single transaction. This poses benefits and drawbacks as players have more control over their spending, but these methods may not be suitable for VIP players. Post-pay methods, such as Boleto Bancario Multibanco, allow consumers to settle their payment at an affiliated outlet or store after making a transaction online. Businesses that accept post-pay methods have to be prepared for delays between the transaction being made and the payment being settled.

Germany and the Netherlands are notable in Western Europe as markets where APMs already account for a significant share of payments, both in e-commerce generally as well as gambling. In both of these markets, bank transfers are key: iDEAL in the Netherlands, and Sofort and Giropay in Germany. iDEAL requires players to authenticate the transaction to show they own the bank account which reduces fraud, making it popular with players and operates alike. Sofort is popular as it requires no additional registration for players and is real-time, meaning operators get immedi-

However, as highlighted earlier, for gambling operators it is not always as easy as mirroring what is happening in e-commerce generally, as there can be significant barriers to doing so. Brazil is an example of such a difference. Although card use is commonplace in e-commerce generally, restrictions on online gambling and high levels of card fraud mean APMs dominate. In Brazil this means pre-pay and post-pay vouchers, such as

Operators should be aware of these differences to ensure players can use the payment methods they want to use. This may mean adding new methods when entering new markets or evolving the payments mix when consolidating market position in an existing and growing market. 5 9

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thE rolE oF mobilE Mobile is already well established in the gambling sector, accounting for more than 50% of digital revenues for leading operators. This compares with an average of just 15% in UK e-commerce generally. Mobile adoption rates are affected by a number of factors including network infrastructure (for example, the availability of 3G or 4G and coverage), as well as the cost of data plans, the cost and availability of handsets, and the operating systems on mobile handsets. For gambling operators, the regulatory and distribution restrictions are an additional headache, with Apple App Store restrictions outside of regulated markets and a complete ban on gambling apps in Google’s Play Store. The mobile gambling opportunity has ramped up more quickly in countries such as the UK as such markets are more developed technically and have relatively simple payment. In the case of the UK, just being able to support cards and offer PayPal as a minimum would allow an operator to reach the vast majority of recreational players. That is not to say fully supporting cards on mobile is easy itself. The most common and long-standing complaint from gambling operators is that the 3D Secure payment pages are not optimised for mobile, which can cause frustration for users. However, for legacy reasons, it is unlikely that this will be resolved in the near future. In countries where APMs are more prevalent, payments on mobile have been restricted in some instances by the popular APMs not being mobile optimised. Given their demographic usage, e-wallets have generally performed better but there are many payment methods that still do not work on mobiles, causing problems for consumers who play on multiple devices. Another consideration is the rise of mobile-centric APMs such as the direct carrier billing method Boku, which adds the cost to a player’s mobile phone bill. This is an increasingly popular payment method in digital commerce generally, notably in mobile video games. The process is quick and simple, and it enables consumers to remain relatively anonymous, only needing to provide their phone number to complete a payment. However, there has been limited adoption in gambling so far for a number of reasons. With direct carrier billing, it takes longer for the funds to be settled to the operator, customers typically receive their mobile phone bill monthly and have additional time to pay the bill, so the funds aren’t transferred to gambling operators for some time. This can lead to an increased risk of fraudulent behaviour. In addition to this, transactions are usually limited to low values, typically £20-£30, which limits appeal to VIPs, or Casino and Poker players who typically have higher average transaction values. A number of operators are investi6 0

gating this method as part of their recreational customer strategy. This highlights one of the biggest challenges gambling operators face regarding mobile payments at present. Customers accessing content through multiple devices want a seamless and consistent experience between devices (mobile, tablet, desktop). They expect to be able to use the same payment methods regardless. There is also a burgeoning group of players that will use only mobile devices, and expect both mobile optimised and mobile-specific payment options. Balancing these expectations adds an extra layer of complexity to the customer experience. Gambling operators should remember that it is not just about the range of payment methods and ensuring everything works on mobile devices – they also need to consider optimising the experience. Simple tweaks such as defaulting to numeric keypads on touch-screen phones when numbers are required, using dropdowns with present inputs where appropriate, and prioritising options based on either regional or individual user’s preferences can have a big impact on the user experience. Implementing design best practice, such as bigger call-to-action buttons and

clear text should also be incorporated so users don’t have to zoom into read or click through the sales funnel. Quick and easy to use payment options will improve player conversions, transaction success rates and ultimately improve operator revenues

lookiNg to ExpaNd or improvE ExistiNg markEts? The specific approach and considerations when entering new markets will vary by operator based on their broader corporate growth strategy and aspirations, existing geographic footprint and experience – all of which will determine the best actions to take. However, there are some universal considerations that impact the payment offering required. The first is the suitability of the payment methods on offer, including having preferred methods available to optimise the user experience. It’s also important to recognise the different behaviours of recreational and high value players, as the latter may not react well to restrictions that lead to transaction frustrations. Another important factor to consider in terms of payments are the fraud characteristics of each

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payment method, and how these translate to the customer, particularly those who are already sceptical about the security of some APMs.

messaging. The simplification required may differ by device payment method and even by country.

Other factors to consider include how transactions and players are authorised, and any technology and regulatory restrictions, including any restrictions on transaction value limits, currency and license restrictions. Additionally, gambling operators should note the ability of the APM to pay out winnings and mechanism used – whether this is automated or via a bank transfer.

It is never too early for the industry to anticipate how the next generation of players will behave and interact. The next generation of players are growing up with access to an abundance of socially dispersed games that will continue to

thE NExt gENEratioN

For existing markets, purchase frustrations may be the most important aspect for gambling operators to resolve. If a consumer runs into issues during the attempted transaction process, they may decide is not worthwhile and abandon it, resulting in a loss of revenue. Enhancing and simplifying the purchasing experience for consumers can greatly improve revenues and help to improve player loyalty towards a gambling operator’s brand. This may include simplifying navigation, reducing unnecessary steps, providing clear information around processing fees, transaction limits and timings (especially related to payouts), and pro-active error-handling

Offering a wide portfolio of payment types involves managing multiple relationships and APIs, which can be costly, time-consuming and complex.

the video gaming industry. With current minimum deposits on gambling sites typically £5-£10, managing players used to making frequent transactions under £1 will involve a change in operator mind-set Offering a wide portfolio of payment types involves managing multiple relationships and APIs, which can be costly, time-consuming and complex for operators to self-manage. This can also pose a challenge for the treasury function if done in-house. Operators are advised to work with an international payments company that can provide expert advice and handle more of the heavy lifting, removing additional unnecessary costs and effort.

compete for their attention. The industry has historically seen low conversion rates from free-toplay to real-money play so this will no doubt be challenging to manage profitably.

It is clear that the complexity of the payment landscape will only increase over time due to evolving player behaviour, diverging regional trends and the emergence of new technologies and payment solutions. Successful operators have aligned corporate with payment strategies and objectives that make the most of these trends.

Another potential consideration is around microtransactions, which are already well entrenched in social gaming and are increasingly penetrating

Fundamentally, payments are an enabler of business growth and having the right payment mix will determine any operator’s long term success. 6 1

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focusing on integrity, quality and growth Cape Town-based BetTech Gaming has made the provision of innovative online sports-betting and casino products its speciality in the blossoming African market BetTech Gaming is a global provider of turnkey gaming solutions to market dominating clients. Founded in 2009, the company’s premium sports betting and casino products are boosted by partnerships with industry-leading content providers. BetTech focuses on emerging and dynamic markets – covering Africa, Australasia, Europe and the Americas. BetTech’s end-to-end Enterprise Management Solution handles the entire operational side of a betting and gaming business, with the team experienced in successfully running large-scale marketing budgets. Quick to market, BetTech’s fully customisable and scalable platform allows an operator to launch in 90 days. The GLI-certified BetTech wagering product is an enterprise grade cloud hosted solution, offering seamless web, mobile and point of sale betting interfaces, for all wager types, including fixed odds, pools, in-running and spread betting.

g3 mEEts bEttEch gamiNg’s iaN barNEs Do you think casino games will become part of the online gaming mix in South Africa? If so, when, and what hurdles must be overcome? Yes, they will without a doubt become popular and part of the online gaming experience – once regulation allows. South Africans have shown a strong appetite for casino products in the landbased environment and the quick adoption of online sports betting indicates that casino will become an integral part of the online and mobile offering. Once permitted, the hurdles are going to be a mix of technology and awareness with the general public. Technologically we will have the same strict approval conditions as we currently do for 6 2

sports betting and on an awareness side it’s going to be educating the punter that online gambling is now legal and that it’s safe to do it on your site.

What effect would legislation have on the online gaming sector in South Africa? The introduction of games of chance would have a huge impact. The start will be the standard casino games, poker, and so on, then the opportunities for other virtual games means that revenue potential grows massively as players become more accustomed.

What impact will casino games have on online sports-betting if the changes go ahead? The integration of casino games will lead to traditional betting sites getting a more diverse customer base – in terms of age, gender and player type. While there is undoubtedly cross-over, each vertical and product type definitely has a core audience. Only being able to interact with sports bettors means cutting out large demographics of players – and large chunks of potential customers.

How many of the land-based operators in South Africa offer sports-betting online? There are currently only a handful of operators that offer sports betting online but they have all noticed this trend and from our commercial discussions we can see that this is happening. The LPM (Limited Payout Machines) market operators are the early adopters in terms of having a sports betting site – in particular, they understand the value of having an existing customer base when online gambling becomes a viable option.

The introduction of games of chance would have a huge impact. The start will be the standard casino games, poker, and so on, then the opportunities for other virtual games means that revenue potential grows massively as players become more accustomed.

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Jesse Hemson-Struthers As Executive Director, Hemson-Struthers is focused on expanding the international reach of the company, which is has its headquarters in Cape Town, South Africa. Hemson-Struthers previously oversaw the launch of BET.co.za, South Africa’s premier online and mobile sports betting site, having founded several high growth technology businesses.

Anli Kotzé Prior to joining BetTech Chief Executive Officer Anli Kotzé worked for Ladbrokes, where she launched the South African arm of the business, as General Manager of Ladbrokes.co.za. Kotzé is an experienced betting and gaming industry professional having also worked for Betfair, based in its Malta office.

Is there a player cross-over between land-based an online sports-betting players? There will certainly be some overlap, but not a cannibalisation of revenues. In South Africa, the traditional land-based premises have a very loyal and regular customer base. Online sports betting is largely appealing to a new generation and demographic of players – the same will be true of casino and other forms of gaming in future.

What is available to players and is there much variation in the types of bets on offer from one operator to the next? The offering in South Africa is very strong when it comes to bets and markets. As the market had developed, so has the product, which has become increasingly localised. Some of the big interna-

tional operators struggled in South Africa because they did not – or could not – offer customers as wide a bet selection on domestic sports and events as with international fixtures. This localisation must be a fundamental consideration. The leading sites that make use of a good software platforms continuously stay up to date with the newest available offerings and, as such, the differentiator is becoming more about price and customer service as opposed to having a unique market or bet.

Where does BetTech fit into the sports-betting sector in South Africa? Every operator’s needs are different. BetTech Gaming recognises this. That’s why we have a tiered offering, with three packages for our

Mark Bosman Fellow co-founder Bosman is Chief Commercial Officer. He focuses on business development and identifying new market and client opportunities for BetTech. Bosman is an entrepreneur with a background in the fast-moving consumer goods industry. He has previously held roles at Red Bull and L’Oreal.

Ian Barnes Chief Technology Officer Ian Barnes is responsible for building and overseeing the technology team and driving product development and innovation. He joined BetTech from Social Code, where he was CTO and worked on a number of international brands, including Hyundai and Vodacom.

clients, depending on what licenses they have and the level of management and financial risk they want to take on. Our first option is the Serviced Software Solution we provide everything needed to get a company online while they handle the day-to-day organisation. An example client would be a start-up operator or an established business looking for a partner who will improve their platform and level of service. Option two is the Enterprise Managed Solution, where we take the strain and utilise our extensive betting and gaming knowledge. The EMS is the complete gaming solution. Our expert team handles the entire operational side, integrating premium content feeds to guarantee the optimum sport, and where allowed, virtual and casino 6 3

Interactive BetteCh GAmiNG

a sElEctioN oF bEttEch cliENts

Bet.co.za BetTech supplies the sports betting platform to Bet.co.za, South Africa’s premier online and mobile sports betting site.

games package. Partners only focus on the marketing needed to grow the site and BetTech manages the rest. An EMS client could be a media company with existing marketing channels to leverage, or land based casino/lottery providers looking to go-online. Finally, our White Label Solution is the easiest way for our partners to enter the burgeoning igaming market with a White Label Solution. This simple, minimal cost solution is built around a revenue share model. It is perfect for any company looking to launch a custom-branded gaming site but lacking the organisational capacity or skill set. With the WLS all licensing requirements are taken care of and it allows you to have a sport, virtual and casino offering without the cost and time commitments of running the business.

What specifically characterises the South African sports-betting market? What are the opportunities and difficulties you face in supplying your services and products to customers? There are plenty of tech challenges in building for Africa. The two main ones being connectivity and the types of devices that are being used. Connectivity in Africa is much slower than in other regions so things such as page and image size matter a lot. As for devices, Africa has mostly skipped the desktop generation and the majority of users are using the internet only on a mobile phone, frequently a hand-me-down, which means that mobile must be a priority focus for African markets. All told there are hundreds of manufacturers of thousands of models of mobile phones in use. Each device holds its own challenges and simply there are too many to cater for every single one. Feature phones are the most challenging as the 6 4

clientele that use them still expect the same level of service on that device as they do on a desktop, so it’s all about how you cater for their needs in a smart way. To respond to such a broad market, in Africa and beyond, we make use of various detection platforms to determine a device, as well as its capabilities, and then respond to it. For example, is it a touch device? If so, the buttons and links are made slightly bigger as we all have fingers bigger than a stylus so it’s hard to press tiny links. If it is cursor-oriented, like BlackBerry devices, then the page is laid out to make it easier to click on and navigate using that tool, while with button-driven phones it is essential not to duplicate links, i.e. an image and text should be one link, not two, as this causes extra clicks to get down a page.

BetVIP Launched in June 2014, BetVIP.com is the world’s first licensed bitcoin-only sportsbook. The technology that powers BetVIP is provided by BetTech.

G-Bets BetTech supplies the online and mobile sports betting platform to GBets.co.za.

What other countries in Africa do you serve and are they at a comparable level to the South African sports-betting market? We serve Uganda, Tanzania and Kenya. The major difference is the lack of horse racing, which is massive in South Africa and far more important compared to other African markets.

Grand Play Grand Play is another South African operator to which BetTech supplies the online and mobile sports betting platform.

Across Africa it is all about soccer – especially the English Premier League which many Africans almost consider to be their own. Africa is also still very reliant on brick and mortar stores as moving money into and out of on online system can be challenging, especially with the number of unbanked people. There is still a long way to go across the continent in terms of consumer education. Many people instinctively trust the option of a bricks and mortar store over an online-only brand but this is changing, fuelled by the convenience of mobile, and the future looks incredibly exciting.

Playabets BetTech supplies the sports betting and horse racing platform to Playabets, the newly-launched online and mobile offering from the van der Vyver family, a traditional, offline bookmaker for the last 65 years.

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“Mobile is the fastest-growing component in the interactive gaming segment, and this platform will enable GTECH to provide gaming operators around the world with innovative game content and features across new and existing channels, and cross-channel analytics that will provide operators with a single view of the player,” said GTECH Canada Vice President of Business Strategy and Development Don Doucet. “Thanks to the support of the provincial government and our partners in industry and education, this platform will represent a made-in-New Brunswick solution to our global gaming customers’ needs.” “Our plan to create jobs and make life better in New Brunswick communities is focused on supporting innovation within local industries," said Premier David Alward. "By investing in the biggest ideas for growth of New Brunswick success stories like GTECH and its partners, I am

Rand Marlis, President of Creative Licensing Corporation, which represents Studiocanal for Terminator 2 licensing, says: “Microgaming is an expert in licensing big brands and we had no doubt that they would create a T2 slot that would perfectly represent the film’s legendary status. The end result really has surpassed our expectations and the online game is a masterpiece; I’m delighted that it is now live for everyone to play and enjoy. Working with Microgaming is a real pleasure and we look forward to a long-lasting relationship.”

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The province of New Brunswick has awarded a consortium led by GTECH Canada ULC with a five-year, CAN $5 million research grant for the development of a new multi-channel content application platform. The consortium, comprised of GTECH Canada, T4G, New Brunswick Community College, and First Mobile Education, will develop a technology platform to deliver game content and features across a broad range of mobile and web-based devices and landbased gaming machines.

Terminator 2: Judgment Day featured an all-star Hollywood cast and won four Academy Awards by setting new standards in visual and sound effects. Microgaming has been working energetically to develop an online slot that takes all the elements of what made the film a success and deliver it to the world of online gaming. This cutting-edge game includes all of the lead actors, Arnold Schwarzenegger, Linda Hamilton and Robert Patrick. The use of original film footage, accompanied by the mesmerising original soundtrack, ensures an action-packed player experience with many industry first game features.

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confident we are building a strong foundation for the future." Funding for the project is being provided through the province’s $15 million Industry Innovation Challenge. Launched last October, the New Brunswick Research and Innovation Council unveiled a provincial competition designed to identify large-scale industry research and development initiatives that will mobilize provincial assets to fuel economic growth. The challenge awarded the top innovative groups with a $5 million grant to develop their proposal. As part of the project, GTECH Canada will establish an Interactive game development team in Moncton while leveraging in-house experience in new game development for Interactive games and providing synergies with land-based and Interactive game content development. The team will work to develop cross-channel games and functionalities, and will utilize T4G’s analytics platform that will combine performance measures of single game titles across multiple channels, as well as compare player behaviour and player segmentation.

Elo Touch Solutions (Elo) has expanded its zerobezel touch technology portfolio with the IntelliTouch Pro projected capacitive (PCAP) solution. Elo’s IntelliTouch Pro solution set includes touchscreen, controller and software from a proven and trusted supplier with global support capabilities. Elo field application engineering and development resources stand ready to help OEM customers successfully integrate PCAP touch capabilities into intelligent systems for the automotive, banking, gaming, healthcare, hospitality, industrial automation, retail, transportation and other commercial applications. IntelliTouch Pro is unique in its ability to be performance optimised for Microsoft Windows 8.1 touch specifications or focus on optical clarity that brings to life the vivid colours and HD graphics of today’s software. IntelliTouch Pro delivers ten (10) touch capability at screen sizes up to 32 inches, with roadmap offerings that scale to support up to sixty (60) touches on 4K, 8K and 16K screens over 100 inches in size. 6 5

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